KEMPER EQUITY KEMPER EQUITY
FUNDS/VALUE STYLE FUNDS/GROWTH STYLE
Kemper Contrarian Fund Kemper Aggressive Growth Fund
Kemper-Dreman Financial Services Fund Kemper Blue Chip Fund
Kemper-Dreman High Return Equity Fund Kemper Classic Growth Fund
Kemper Small Cap Relative Value Fund Kemper Growth Fund
Kemper Small Cap Value Fund Kemper Small Capitalization
Kemper U.S. Growth and Income Fund Equity Fund
Kemper Value Fund Kemper Technology Fund
SUPPLEMENT TO PROSPECTUS Kemper Total Return Fund
DATED FEBRUARY 1, 1999 Kemper Value+Growth Fund
------------------ SUPPLEMENT TO PROSPECTUS
DATED FEBRUARY 1, 1999
KEMPER ASSET ALLOCATION ------------------
FUNDS
KEMPER TARGET EQUITY
Kemper Horizon 20+ Portfolio FUNDS
Kemper Horizon 10+ Portfolio
Kemper Horizon 5 Portfolio Kemper Retirement Fund Series VII
SUPPLEMENT TO PROSPECTUS SUPPLEMENT TO PROSPECTUS
DATED NOVEMBER 30, 1998 DATED NOVEMBER 30, 1998
------------------ ------------------
The following disclosure supplements the disclosure in the "Special Features --
Exchange Privilege" section of the prospectus for all funds:
Effective June 1, 1999, in addition to the current limits on exchanges of shares
with a value over $1,000,000, shares of a Kemper Fund with a value of $1,000,000
or less (except Kemper Cash Reserves Fund) acquired by exchange from another
Kemper Fund, or from a Money Market Fund, may not be exchanged thereafter until
they have been owned for 15 days if, in the investment manager's judgement, the
exchange activity may have an adverse effect on the fund. In particular, a
pattern of exchanges that coincides with a "market timing" strategy may be
disruptive to the Fund and therefore may be subject to the 15-Day Hold Policy.
For Kemper Horizon 20+ Portfolio, Kemper Horizon 10+ Portfolio, Kemper Horizon 5
Portfolio, and Kemper Retirement Fund Series VII, the following disclosure
supplements the disclosure in the currently effective prospectus:
On September 7, 1998, Zurich Insurance Company ("Zurich"), the majority owner of
Scudder Kemper Investments, Inc. (the "Adviser"), entered into an agreement with
B.A.T Industries p.l.c. ("B.A.T"), pursuant to which the financial services
businesses of B.A.T were combined with Zurich's businesses to form a new global
insurance and financial services company known as Zurich Financial Services.
Upon consummation of the transaction, each
March 29, 1999
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Fund's investment management agreement with the Adviser was deemed to have been
assigned and, therefore, terminated. The Board of Trustees of each Fund and the
shareholders of each Fund have approved a new investment management agreement
with the Adviser, which is substantially identical to the former investment
management agreement, except for the dates of execution and termination.
At special meetings of the shareholders of each Fund held on December 17, 1998
(the "Special Meetings"), the shareholders confirmed the following: as a matter
of fundamental policy, each Fund is classified as a diversified open-end
investment company, or as a diversified series of an open-end investment
company, under the Investment Company Act of 1940 (the "1940 Act"), but the
shareholders voted to eliminate any additional fundamental diversification
policies.
Additionally, at each Fund's Special Meeting, the shareholders approved the
reclassification of each Fund's investment objective(s) and policies as
non-fundamental, with the exception of those policies required to be fundamental
by the 1940 Act. An objective or policy which is non-fundamental may be changed
or eliminated by a Fund's Board of Trustees without a vote of the shareholders.
For Kemper Value Fund, the following disclosure replaces the example in the "Fee
and expense information" section on page 34 of the prospectus:
Example
This example is to help you compare the cost of investing in the fund with the
cost of investing in other mutual funds.
This example illustrates the impact of the above fees and expenses on an account
with an initial investment of $10,000, based on the expenses shown above. It
assumes a 5% annual return, the reinvestment of all dividends and distributions
and "annual fund operating expenses" remaining the same each year. The example
is hypothetical: actual fund expenses and returns vary from year to year, and
may be higher or lower than those shown. The example does not reflect sales
charges (loads) on reinvested dividends and other distributions. If these sales
charges were included, your costs would be higher.
Fees and expenses if you sold shares after:
Class A Class B Class C
------- ------- -------
1 Year $704 $615 $314
3 Years $975 $964 $661
5 Years $1,267 $1,339 $1,134
10 Years $2,095 $2,070 $2,441
Fees and expenses if you did not sell your shares:
Class A Class B Class C
------- ------- -------
1 Year $704 $215 $214
3 Years $975 $664 $661
5 Years $1,267 $1,139 $1,134
10 Years $2,095 $2,070 $2,441
