497 1 0001.txt SUPPLEMENT TO SAI Kemper Aggressive Growth Fund Kemper Blue Chip Fund Kemper California Tax-Free Income Fund Kemper Classic Growth Fund Kemper Contrarian Fund Kemper Florida Tax-Free Income Fund Kemper Growth Fund Kemper High Yield Fund II Kemper High Yield Fund Kemper Horizon 20+ Portfolio Kemper High Yield Opportunity Fund Kemper Horizon 5 Portfolio Kemper Horizon 10+ Portfolio Kemper Intermediate Municipal Bond Fund Kemper Income and Capital Preservation Fund Kemper Municipal Bond Fund Kemper New York Tax-Free Income Fund Kemper Ohio Tax-Free Income Fund Kemper Small Capitalization Equity Fund Kemper Short-Term U.S. Government Fund Kemper Strategic Income Fund Kemper Small Cap Value Fund Kemper Technology Fund Kemper Target 2011 Fund Kemper U.S. Government Securities Fund Kemper Total Return Fund Kemper Value Fund Kemper U.S. Mortgage Fund Kemper U.S. Growth and Income Fund Kemper Value + Growth Fund Kemper-Dreman High Return Equity Fund Kemper-Dreman Financial Services Fund Scudder Capital Growth Fund Scudder Dividend & Growth Fund Scudder Global Fund Scudder Growth and Income Fund Scudder Focus Growth Fund Scudder Health Care Fund Scudder High Yield Tax Free Fund Scudder International Fund Scudder Large Company Growth Fund Scudder Large Company Value Fund Scudder Managed Municipal Bonds Scudder Medium Term Tax Free Fund Scudder Pathway Series: Growth Portfolio Scudder Pathway Series: Conservative Portfolio Scudder Research Fund Scudder Pathway Series: Moderate Portfolio Scudder Small Company Stock Fund Scudder Technology Innovation Fund Scudder 21st Century Growth Fund Scudder S&P 500 Stock Index Fund --------------------
The following text replaces the section entitled "Which Arrangement is Better for You?" in each of the currently effective Statements of Additional Information for each of the above-noted funds: Which Arrangement is Better for You? The decision as to which class of Shares provides a more suitable investment for an investor depends on a number of factors, including the amount and intended length of the investment. In making this decision, investors should review their particular circumstances carefully with their financial representative. Investors making investments that qualify for reduced sales charges might consider Class A Shares. Investors who prefer not to pay an initial sales charge and who plan to hold their investment for more than six years might consider Class B Shares. Investors who prefer not to pay an initial sales charge but who plan to redeem their Shares within six years might consider Class C Shares. KDI has established the following procedures regarding the purchase of Class A, Class B and Class C Shares. These procedures do not reflect in any way the suitability of a particular class of Shares for a particular investor and should not be relied upon as such. That determination must be made by investors with the assistance of their financial representative. Orders for Class B Shares or Class C Shares for $500,000 or more will be declined with the exception of orders received from employer sponsored employee benefit plans using the subaccount recordkeeping system available through the Shareholder Service Agent (KemFlex Plans). Orders for Class B Shares or Class C Shares for KemFlex Plans (not including plans under Code Section 403(b)(7) sponsored by a K-12 school district) will not be accepted in such classes but will instead be invested in Class A Shares at net asset value when the combined subaccount value in a Fund or other Kemper Funds or other plan investments listed under "Special Features - Class A Shares - Combined Purchases" is in excess of $5 million including purchases pursuant to the "Combined Purchases," Letter of Intent" and "Cumulative Discount" features described under "Special Features." For purposes of redirecting contributions, KemFlex Plan values will be calculated annually. Effective March 9, 2001, KemFlex Plans that satisfy each of the conditions described below may direct the Shareholder Service Agent to convert plan assets invested in Class B Shares to Class A Shares at net asset value without incurring a contingent deferred sales charge. In order to qualify for the preceding conversion privilege, a KemFlex Plan must satisfy each of the following conditions: (1) the plan must have an aggregate balance of $2 million in plan assets invested in Kemper Funds or other investments maintained on the subaccount recordkeeping system of the Shareholder Service Agent; (2) the plan must have elected to purchase Class A Shares of the Kemper Funds at net asset value for future contributions to be invested in Kemper Funds; and (3) the plan must have been using the subaccount recordkeeping system of the Shareholder Service Agent for at least four years. When eligible, KemFlex Plan sponsors must elect in writing to the Shareholder Service Agent in order to convert plan assets from Class B Shares to Class A Shares. For more information about these sales arrangements, consult your financial representative or the Shareholder Service Agent. In particular, for information concerning the eligibility of investors to purchase Class A Shares at net asset value, see "Purchase of Shares - Initial Sales Charge Alternative" and for information on special rules for aggregating assets of KemFlex Plans for eligibility for the Combined Purchase and related features, see "Special Features - Class A Shares - Combined Purchases." Financial services firms may receive different compensation depending upon which class of shares they sell. March 9, 2001