-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, O0jGhZ7Dr4/InfNzSp5wfoFoG1nYrjuTTHAEe8mMu+iOxfjdbb8/5aUXm7OPuj29 hiyslTLC+9MbUgI/QxSB9Q== 0000350562-95-000008.txt : 19951229 0000350562-95-000008.hdr.sgml : 19951229 ACCESSION NUMBER: 0000350562-95-000008 CONFORMED SUBMISSION TYPE: NSAR-B PUBLIC DOCUMENT COUNT: 9 CONFORMED PERIOD OF REPORT: 19951031 FILED AS OF DATE: 19951228 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: KEMPER INTERNATIONAL FUND CENTRAL INDEX KEY: 0000350562 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 363124258 STATE OF INCORPORATION: MA FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: NSAR-B SEC ACT: 1940 Act SEC FILE NUMBER: 811-03136 FILM NUMBER: 95605029 BUSINESS ADDRESS: STREET 1: 120 S LASALLE ST CITY: CHICAGO STATE: IL ZIP: 60603 BUSINESS PHONE: 3127811121 FORMER COMPANY: FORMER CONFORMED NAME: KEMPER INTERNATIONAL FUND INC DATE OF NAME CHANGE: 19870127 NSAR-B 1 N-SAR (3.0) PAGE 1 000 B000000 10/31/95 000 C000000 0000350562 000 D000000 N 000 E000000 NF 000 F000000 Y 000 G000000 N 000 H000000 N 000 I000000 3.0 000 J000000 A 001 A000000 KEMPER INTERNATIONAL FUND 001 B000000 811-3136 001 C000000 3127811121 002 A000000 120 SOUTH LASALLE STREET 002 B000000 CHICAGO 002 C000000 IL 002 D010000 60603 003 000000 N 004 000000 N 005 000000 N 006 000000 N 007 A000000 N 007 B000000 0 007 C010100 1 007 C010200 2 007 C010300 3 007 C010400 4 007 C010500 5 007 C010600 6 007 C010700 7 007 C010800 8 007 C010900 9 007 C011000 10 008 A000001 KEMPER FINANCIAL SERVICES, INC. 008 B000001 A 008 C000001 801-6634 008 D010001 CHICAGO 008 D020001 IL 008 D030001 60603 010 A000001 KEMPER DISTRIBUTORS, INC. 010 B000001 8-47765 010 C010001 CHICAGO 010 C020001 IL 010 C030001 60603 011 A000001 KEMPER DISTRIBUTORS, INC. 011 B000001 8-47765 011 C010001 CHICAGO 011 C020001 IL 011 C030001 60603 012 A000001 KEMPER SERVICE COMPANY 012 B000001 84-1713 012 C010001 KANSAS CITY PAGE 2 012 C020001 MO 012 C030001 64105 013 A000001 ERNST & YOUNG LLP 013 B010001 CHICAGO 013 B020001 IL 013 B030001 60606 014 A000001 KEMPER DISTRIBUTORS, INC. 014 B000001 8-47765 015 A000001 INVESTORS FIDUCIARY TRUST COMPANY 015 B000001 C 015 C010001 KANSAS CITY 015 C020001 MO 015 C030001 64105 015 E010001 X 015 A000002 STATE STREET BANK AND TRUST COMPANY 015 B000002 S 015 C010002 BOSTON 015 C020002 MA 015 C030002 02110 015 E010002 X 015 A000003 THE CHASE MANHATTAN BANK, N.A. 015 B000003 C 015 C010003 BROOKLYN 015 C020003 NY 015 C030003 11245 015 E040003 X 018 000000 Y 019 A000000 Y 019 B000000 50 019 C000000 KEMPERFNDS 020 A000001 SMITH NEW COURT, INC. 020 B000001 13-3169769 020 C000001 409 020 A000002 KLEINWORT BENSON GRIEVESON 020 B000002 36-2880742 020 C000002 166 020 A000003 COUNTY NATWEST SECURITIES 020 B000003 UNKNOWN 020 C000003 150 020 A000004 S.G. WARBURG 020 B000004 13-3340045 020 C000004 124 020 A000005 ROBERT FLEMING INC 020 B000005 13-3298866 020 C000005 119 020 A000006 BARCLAYS DE ZOETE WEDD GOV'T SECURITIES INC. 020 B000006 13-3551367 020 C000006 114 020 A000007 KIM ENG SECURITIES USA, INC. 020 B000007 13-3589747 020 C000007 110 PAGE 3 020 A000008 NCB 020 B000008 UNKNOWN 020 C000008 108 020 A000009 BRIDGE TRADING COMPANY 020 B000009 UNKNOWN 020 C000009 102 020 A000010 SALOMON BROTHERS INC. 020 B000010 13-3082694 020 C000010 83 021 000000 2282 022 A000001 GOLDMAN, SACHS & COMPANY 022 B000001 13-5108880 022 C000001 150996 022 D000001 21607 022 A000002 KLEINWORT BENSON GRIEVESON 022 B000002 36-2880742 022 C000002 28933 022 D000002 50810 022 A000003 SMITH NEW COURT, INC. 022 B000003 13-3169769 022 C000003 39108 022 D000003 31350 022 A000004 THE FIRST BOSTON CORPORATION 022 B000004 13-5659485 022 C000004 60822 022 D000004 4674 022 A000005 LEHMAN BROTHERS INC. 022 B000005 13-2518466 022 C000005 34447 022 D000005 10053 022 A000006 COUNTY NATWEST SECURITIES 022 B000006 UNKNOWN 022 C000006 14024 022 D000006 29128 022 A000007 SALOMON BROTHERS INC. 022 B000007 13-3082694 022 C000007 20176 022 D000007 17804 022 A000008 BRIDGE TRADING COMPANY 022 B000008 UNKNOWN 022 C000008 10674 022 D000008 23358 022 A000009 ROBERT FLEMING INC. 022 B000009 13-3298866 022 C000009 22237 022 D000009 11526 022 A000010 S.G. 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DUFFY TITLE TREASURER EX-27.COMBKIF 2
6 PER SHARE AND RATIO INFORMATION IS SHOWN AT THE CLASS LEVEL. ALL OTHER INFORMATION IS COMBINED FOR ALL CLASSES. THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE 1995 ANNUAL REPORT TO SHAREHOLDERS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000350562 KEMPER INTERNATIONAL FUND 0 COMBINED FOR ALL CLASSES 1000 12-MOS OCT-31-1995 OCT-31-1995 325,184 368,845 9,613 83 0 378,541 11,366 0 2,467 13,833 0 316,346 0 0 1,320 0 1,185 0 45,857 364,708 6,815 1,501 0 (6,150) 2,166 1,123 (655) 2,634 (332) 0 (24,455) 0 0 0 0 (53,574) 0 0 0 0 (2,757) 0 (6,150) 373,437 0 0 0 0 0 0 0 0 0 0

EX-27.AKIF 3
6 PER SHARE AND RATIO INFORMATION IS SHOWN AT THE CLASS LEVEL. ALL OTHER INFORMATION IS COMBINED FOR ALL CLASSES. THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE 1995 ANNUAL REPORT TO SHAREHOLDERS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000350562 KEMPER INTERNATIONAL FUND 01 CLASS A 1000 12-MOS OCT-31-1995 OCT-31-1995 0 0 0 0 0 0 0 0 0 0 0 0 29,089 34,937 0 0 0 0 0 308,175 0 0 0 0 0 0 0 0 0 0 0 0 8,044 (16,162) 2,270 0 0 0 0 0 0 0 0 0 11.13 .07 .05 0 (.66) 0 10.59 .016 0 0

EX-27.BKIF 4
6 PER SHARE AND RATIO INFORMATION IS SHOWN AT THE CLASS LEVEL. ALL OTHER INFORMATION IS COMBINED FOR ALL CLASSES. THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE 1995 ANNUAL REPORT TO SHAREHOLDERS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000350562 KEMPER INTERNATIONAL FUND 02 CLASS B 1000 12-MOS OCT-31-1995 OCT-31-1995 0 0 0 0 0 0 0 0 0 0 0 0 4,043 2,571 0 0 0 0 0 42,270 0 0 0 0 0 0 0 0 0 0 0 0 3,584 (2,296) 184 0 0 0 0 0 0 0 0 0 11.09 (.02) .05 0 (.66) 0 10.46 .025 0 0

EX-27.CKIF 5
6 PER SHARE AND RATIO INFORMATION IS SHOWN AT THE CLASS LEVEL. ALL OTHER INFORMATION IS COMBINED FOR ALL CLASSES. THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE 1995 ANNUAL REPORT TO SHAREHOLDERS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000350562 KEMPER INTERNATIONAL FUND 03 CLASS C 1000 12-MOS OCT-31-1995 OCT-31-1995 0 0 0 0 0 0 0 0 0 0 0 0 206 71 0 0 0 0 0 2,152 0 0 0 0 0 0 0 0 0 0 0 0 258 (130) 7 0 0 0 0 0 0 0 0 0 11.09 (.02) .05 0 (.66) 0 10.46 .025 0 0

EX-27.IKIF 6
6 PER SHARE AND RATIO INFORMATION IS SHOWN AT THE CLASS LEVEL. ALL OTHER INFORMATION IS COMBINED FOR ALL CLASSES. THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE 1995 ANNUAL REPORT TO SHAREHOLDERS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000350562 KEMPER INTERNATIONAL FUND 04 CLASS I 1000 4-MOS OCT-31-1995 OCT-31-1995 0 0 0 0 0 0 0 0 0 0 0 0 1,142 0 0 0 0 0 0 12,111 0 0 0 0 0 0 0 0 0 0 0 0 1,261 (119) 0 0 0 0 0 0 0 0 0 0 10.09 .04 .48 0 0 0 10.61 .009 0 0

EX-99.77B 7 SUPPLEMENTARY REPORT OF INDEPENDENT AUDITORS Board of Trustees Kemper Funds In planning and performing our audit of the financial statements of each of the Kemper Funds listed in Exhibit A attached hereto (the "Funds") for the year ended October 31, 1995, we considered their internal control structure, including procedures for safeguarding securities, in order to determine our auditing procedures for the purpose of expressing our opinion on their financial statements and to comply with the requirements of Form N-SAR, not to provide assurance on the internal control structure. The management of the Funds is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. Two of the objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition and that transactions are executed in accordance with management's authorization and recorded properly to permit preparation of financial statements in conformity with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that it may become inadequate because of changes in conditions or that the effectiveness of the design and operation may deteriorate. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a condition in which the design or operation of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. However, we noted no matters involving the internal control structure, including procedures for safeguarding securities, that we consider to be material weaknesses as defined above as of October 31, 1995. This report is intended solely for the information and use of management and the Securities and Exchange Commission. ERNST & YOUNG LLP Chicago, Illinois December 15, 1995 Kemper Funds Exhibit A October 31, 1995 Kemper Total Return Fund Kemper International Fund Kemper Blue Chip Fund EX-99.77C 8 Exhibit 77C Kemper International Fund Form N-SAR for the period ended 10/31/95 File No. 811-3136 Page 1 A special meeting of Registrant's shareholders was held on September 19, 1995. Votes regarding the items submitted to shareholder vote are set forth below. Item 1: Election of the Board of Trustees David W. Belin Vote Number ---- ----------- FOR 22,977,178 WITHHELD 649,740 Lewis A. Burnham Vote Number ---- ----------- FOR 23,012,618 WITHHELD 614,300 Donald L. Dunaway Vote Number ---- ----------- FOR 22,996,079 WITHHELD 630,839 Robert B. Hoffman Vote Number ---- ----------- FOR 23,005,530 WITHHELD 621,388 Donald R. Jones Vote Number ---- ----------- FOR 23,010,255 WITHHELD 616,663 David B. Mathis Vote Number ---- ----------- FOR 22,974,815 WITHHELD 652,103 Exhibit 77C Kemper International Fund Form N-SAR for the period ended 10/31/95 File No. 811-3136 Page 2 Shirley D. Peterson Vote Number ---- ----------- FOR 22,984,266 WITHHELD 642,652 William P. Sommers Vote Number ---- ----------- FOR 23,005,530 WITHHELD 621,388 Stephen B. Timbers Vote Number ---- ----------- FOR 23,024,432 WITHHELD 602,486 Item 2: Selection of Independent Auditors Vote Number ---- ----------- FOR 22,655,431 AGAINST 304,288 ABSTAIN 667,199 Exhibit 77C Kemper International Fund Form N-SAR for the period ended 10/31/95 File No. 811-3136 Page 3 Item 3: New Investment Management Agreement Vote Number ---- ----------- FOR 22,110,270 AGAINST 511,889 ABSTAIN 1,004,759 Item 4B: New Rule 12B-1 Distribution Plan (For Class B Shareholders Only) Vote Number ---- ---------- FOR 1,701,942 AGAINST 80,486 ABSTAIN 93,263 Item 4C: New Rule 12B-1 Distribution Plan (For Class C Shareholders Only) Vote Number ---- ---------- FOR 91,783 AGAINST 482 ABSTAIN 17,779 LKW|W:\FUNDS\NSAR.EXH\KIFO95.77C|121995 EX-99.77P 9 Report of Independent Auditors The Board of Trustees Kemper Funds We have examined the accompanying description of Kemper Financial Services, Inc. ("KFS") policies and procedures applicable to the multiple distribution system for calculating the net asset value, dividends and distributions of, and for allocating income and expenses to, various classes of shares of each of the Kemper Funds listed in Exhibit A attached hereto (the "Funds"). Our examination included procedures to obtain reasonable assurance about whether (1) the accompanying description presents fairly, in all material respects, the aspects of KFS policies and procedures that may be relevant to the Funds' internal control structure, (2) the control structure policies and procedures included in the description were suitably designed to achieve the control objectives specified in the description, if those policies and procedures were complied with satisfactorily, and (3) such policies and procedures had been placed in operation as of October 31, 1995. The control objectives were specified by KFS. Our examination was performed in accordance with standards established by the American Institute of Certified Public Accountants and included those procedures we considered necessary in the circumstances to obtain a reasonable basis for rendering our opinion. In our opinion, the accompanying description of the aforementioned portions of the internal control structure presents fairly, in all material respects, the relevant aspects of KFS's policies and procedures that had been placed in operation as of October 31, 1995. Also, in our opinion, the policies and procedures, as described, are suitably designed to provide reasonable assurance that the specified control objectives would be achieved if the described policies and procedures were complied with satisfactorily. In addition to the procedures we considered necessary to render our opinion as expressed in the previous paragraph, we applied tests to specific policies and procedures, listed in Section III. The nature, timing, extent, and results of the tests are listed in Section IV. This information has been provided to the Funds and to their auditors to be taken into consideration, along with information about the internal control structure at the Funds, when making assessments of control risks for the Funds. In our opinion, the policies and procedures that were tested, were operating with sufficient effectiveness to provide reasonable, but not absolute, assurance that the control objectives specified in Section II were achieved as of October 31, 1995. The relative effectiveness and significance of specific policies and procedures at KFS and their effect on assessments of control risk at the Funds are dependent on their interaction with the policies, procedures, and other factors present at the Funds. The description and tests of operating effectiveness of the policies and procedures at KFS is as of October 31, 1995. Any projection of such information to the future is subject to the risk that, because of change, the description may no longer portray the system in existence. The potential effectiveness of specified policies and procedures at KFS is subject to inherent limitations and, accordingly, errors or irregularities may occur and not be detected. Furthermore, the projection of any conclusions, based on our findings, to future periods is subject to the risk that changes may alter the validity of such conclusions. This report is intended for use by the management of KFS, the Funds and their auditors, and the Securities and Exchange Commission. ERNST & YOUNG LLP Chicago, Illinois December 15, 1995 SECTION I Description of the System Kemper Financial Services, Inc. ("KFS") implemented plans which allow each of the Kemper Funds listed in Exhibit A attached hereto (the "Funds") to issue multiple classes of shares. Under the multiple distribution system, the Funds provide investors with the option of purchasing shares in any or all of the following four ways: (i) with a front-end sales load and a service fee (the "Front-End Load Option" or "Class A shares"); (ii) without a front-end sales load, but subject to a contingent deferred sales charge as well as to a distribution fee pursuant to a Rule 12b-1 Plan and to a service fee (the "Deferred Option" or "Class B shares"); (iii) without a front-end sales load or contingent deferred sales charge but subject to a Rule 12b-1 Plan providing for a distribution fee and to a service fee (the Level Load Option" or "Class C shares"); and (iv) without a front-end sales load, contingent deferred sales charge, distribution fee or service fee ("Institutional Option" or "Class I shares"). In addition, the Funds may from time to time create one or more additional classes of shares, the terms of which may differ from the Class A, B, C and I shares. Class B shares are converted to Class A shares six years after issuance. Class C and I shares have no conversion feature. No Class I shares have been issued. The net asset value of all outstanding shares of each class is computed based on the net assets and shares outstanding attributable to each class. All expenses incurred by each Fund are allocated to each class based on the relative percentage of adjusted net assets except for the expenses of the distribution plan which are allocated to Class B and C shares, administrative service fees which are allocated to Class A, B and C shares, and class specific expenses which will be borne exclusively by that class. Due to the specific allocation of expenses that are borne solely by certain classes, the net income attributable to, and the dividends paid by, each class may vary. SECTION II Specific Control Objectives Following are the specific control objectives of each Fund's system of internal accounting control relating to the allocation of income, expenses, gains and losses and the calculation of NAV and dividends/distributions for the four classes of shares: 1. Direct expenses charged to each class of shares are correctly recorded in the Fund accounting records and allocated to the correct class of shares. 2. Income, other operating expenses and realized and unrealized gains and losses are allocated properly to each class of shares based upon the relative net assets of each class of shares at the beginning of the day after adjusting for the prior day's Fund share activity. 3. Dividend rates and daily per share NAV's for each class of shares reflect the proper allocation of income, expenses and realized and unrealized gains and losses, including the proper amount of any direct expenses charged to each class of shares. SECTION III Procedures to Achieve Specific Control Objectives The following additional procedures will be performed for each Fund to meet the specific control objectives: 1. Preparation of the Multi-Class Pricing-NAV Worksheet ("Worksheet") daily. 2. A determination of the dividends by class is made by dividing daily net investment income allocated to each class by the number of shares of that class eligible to receive dividends (record shares). The periodic distribution rate for realized gains will be determined by taking total net realized gains for each class and dividing by total record date shares. 3. Upon completion of the Worksheet and the calculation of the dividend rate, and prior to furnishing the computed NAV and dividend rate to the Shareholder Service Agent, the Worksheet and calculation will be reviewed for accuracy by an accounting supervisor ("Final Reviewer"). The Final Reviewer will initial the Worksheet as evidence of the review. 4. If the Final Reviewer notes any unusual fluctuation in the NAV or daily dividend rates between the classes of shares of a Fund, he or she will research the matter and document the reasons for, and the reasonableness of, the fluctuation. 5. On a monthly basis, a reconciliation of all account balances for each class of shares to the general ledger will be performed. The reconciliation will be reviewed and initialed by the reviewer. SECTION IV Tests of Effectiveness of Control Structure Policies and Procedures Our tests of the effectiveness of control structure policies and procedures were designed to determine whether: 1. The description of the KFS' policies and procedures included in Section I of this report presents fairly, in all material respects, those aspects of the KFS' control structure that may be relevant to a user organization's internal control structure, 2. the control structure policies and procedures described in Section III of this report were suitably designed to achieve the control objectives defined in Section II of this report, if those policies and procedures were complied with satisfactorily, 3. the control structure policies and procedures described in Section III of this report had been placed in operation as of the date specified, and 4. the control structure policies and procedures were operating with sufficient effectiveness to provide reasonable, but not absolute, assurance that the control objectives in Section II were achieved as of as of the date listed in Exhibit A attached hereto ("Report Date"). Our tests of the effectiveness of control structure policies and procedures included the following procedures, to the extent we considered necessary: (a) a review of the KFS' organizational structure, including the segregation of functional responsibilities, policy statements, and personnel policies, (b) discussions with management, accounting, administrative and other personnel who are assigned responsibilities for developing, ensuring adherence to and applying control structure policies and procedures, and (c) observations of personnel in the performance of their assigned duties. Our tests of the effectiveness of control structure policies and procedures included such other tests as we considered necessary in the circumstances to evaluate whether those policies and procedures, and the extent of compliance with them, are sufficient to provide reasonable, but not absolute, assurance that the specified control objectives were achieved as of Report Date. Our tests of the operational effectiveness of control structure policies and procedures were designed to cover the calculation as of Report Date for each of the procedures listed in Section III which satisfy the control objectives listed in Section II of this report. In selecting particular tests of the operational effectiveness of control structure policies and procedures, we considered the (a) nature of the items being tested, (b) the kinds and competence of available evidential matter, (c) the nature of the audit objectives to be achieved, (d) the assessed level of control risk, and (e) the expected efficiency and effectiveness of the tests. Tests of effectiveness of control structure policies and procedures included: Tests of source documentation to ensure validity of information. Tests of input and supervisory control procedures in place to ensure accuracy, completeness, validity and integrity of processing. Tests of recalculation of output to verify accuracy. Tests of output control procedures and resultant documents and reports relative to specific calculations to ensure accurate and timely updates of accounting records were achieved. Testing procedures were designed and performed to enable us to conclude that the control objectives listed in Section II of this report were achieved as of Report Date. Kemper Funds Exhibit A October 31, 1995 Kemper Total Return Fund Kemper International Fund Kemper Blue Chip Fund ~~-----END PRIVACY-ENHANCED MESSAGE-----~~