-----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, PSo5fG7b62yeXNyO4xepUJR/jS1qBw4spGEr9nSsu29lzPHLb/yxu1DMuPZWAs/9 TRYuV7pyJH5d1lFSniNBkA== 0000088053-99-000049.txt : 19990113 0000088053-99-000049.hdr.sgml : 19990113 ACCESSION NUMBER: 0000088053-99-000049 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19990112 FILER: COMPANY DATA: COMPANY CONFORMED NAME: KEMPER ADJUSTABLE RATE U S GOVERNMENT FUND CENTRAL INDEX KEY: 0000814955 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 363528556 STATE OF INCORPORATION: MA FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 497 SEC ACT: SEC FILE NUMBER: 033-14832 FILM NUMBER: 99504844 BUSINESS ADDRESS: STREET 1: 222 S RIVERSIDE PLAZA CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3125371569 MAIL ADDRESS: STREET 1: 222 SOUTH RIVERSIDE PLAZA CITY: CHICAGO STATE: IL ZIP: 60606 FORMER COMPANY: FORMER CONFORMED NAME: KEMPER GOVERNMENT INCOME TRUST DATE OF NAME CHANGE: 19870811 497 1 SUPPLEMENT TO PROSPECTUS DATED 01/01/99 KEMPER INCOME FUNDS SUPPLEMENT TO PROSPECTUS DATED JANUARY 1, 1999 ------------------ CLASS I SHARES ------------------ Kemper Adjustable Rate U.S. Government Fund Kemper Short-Intermediate Government Fund Kemper Diversified Income Fund Kemper U.S. Government Securities Fund Kemper High Yield Fund Kemper High Yield Opportunity Fund Kemper Income and Capital Preservation Fund Kemper U.S. Mortgage Fund ------------------ The above funds currently offer four classes of shares to provide investors with different purchasing options. These are Class A, Class B and Class C shares, which are described in the funds' prospectus, and Class I shares, which are described in the prospectus as supplemented hereby. When placing purchase orders, investors must specify whether the order is for Class A, Class B, Class C or Class I shares. Class I shares are available for purchase exclusively by the following categories of institutional investors: (1) tax-exempt retirement plans (Profit Sharing, 401(k), Money Purchase Pension and Defined Benefit Plans) of Scudder Kemper Investments, Inc. ("Scudder Kemper") and its affiliates and rollover accounts from those plans; (2) the following investment advisory clients of Scudder Kemper and its investment advisory affiliates that invest at least $1 million in a Fund: unaffiliated benefit plans, such as qualified retirement plans (other than individual retirement accounts and self-directed retirement plans); unaffiliated banks and insurance companies purchasing for their own accounts; and endowment funds of unaffiliated non-profit organizations; (3) investment-only accounts for large qualified plans, with at least $50 million in total plan assets or at least 1000 participants; (4) trust and fiduciary accounts of trust companies and bank trust departments providing fee-based advisory services that invest at least $1 million in a Fund on behalf of each trust; (5) policy holders under Zurich-American Insurance Group's collateral investment program investing at least $200,000 in a Fund; and (6) investment companies managed by Scudder Kemper that invest primarily in other investment companies. January 1, 1999 Class I shares currently are available for purchase only from Kemper Distributors, Inc. ("KDI"), principal underwriter for the Funds, and, in the case of category 4 above, selected dealers authorized by KDI. Share certificates are not available for Class I shares. The primary distinctions among the classes of each Fund's shares lie in their initial and contingent deferred sales charge schedules and in their ongoing expenses, including asset-based sales charges in the form of Rule 12b-1 distribution fees. Class I shares are offered at net asset value without an initial sales charge and are not subject to a contingent deferred sales charge or a Rule 12b-1 distribution fee. Also, there is no administrative services fee charged to Class I shares. As a result of the relatively lower expenses for Class I shares, the level of income dividends per share (as a percentage of net asset value) and, therefore, the overall investment return, typically will be higher for Class I shares than for Class A, Class B and Class C shares. The following information supplements the indicated sections of the prospectus. Past Performance The charts and tables contained in the accompanying prospectus provide some indication of the risks of investing in the funds by illustrating how the funds have performed from year to year, and comparing this information to a broad measure of market performance. Of course, past performance is not necessarily an indication of future performance. Additional financial information for those funds which currently have Class I shares outstanding is set forth below. Average Annual Total Returns -- Class I shares For periods ended December 31, 1997 One Year Life of Class Inception of Class ----------------- -------- ------------- ------------------ Kemper U.S. Government 9.35% 7.42% 7/3/95 Securities Fund Kemper High Yield Fund 11.91% 14.45% 10/1/97 Kemper Income and Capital 9.02% 7.66% 7/3/95 Preservation Fund Expense information This information is designed to help you understand the fees and expenses that you may pay if you buy and hold shares of the funds. Shareholder fees: Fees paid directly from your investment.
Maximum Maximum Maximum Deferred Sales Charge Sales Sales Charge on Purchases Charge on (as a % of (as a % of Reinvested Redemption Exchange redemption offering price) Dividends Fee Fee proceeds) --------------- --------- --- --- --------- Kemper None None None None None Adjustable Rate U.S. Government Fund Kemper None None None None None Short-Intermediate Government Fund Kemper None None None None None Diversified Income Fund Kemper U.S. None None None None None Government Securities Fund Kemper High Yield None None None None None Fund Kemper High Yield None None None None None Opportunity Fund Kemper Income and None None None None None Capital Preservation Fund Kemper U.S. None None None None None Mortgage Fund
Annual fund operating expenses: Expenses that are deducted from fund assets. Total fund Investment Rule Other operating management fee 12b-1 fees expenses* expenses* -------------- ---------- --------- --------- Kemper Adjustable 0.55% None 0.29% 0.84% Rate U.S. Government Fund Kemper 0.55% None 0.19% 0.74% Short-Intermediate Government Fund Kemper Diversified 0.56% None 0.12% 0.68% Income Fund Kemper U.S. 0.41% None 0.16% 0.57% Government Securities Fund Kemper High Yield 0.52% None 0.08% 0.60% Fund Total fund Investment Rule Other operating management fee 12b-1 fees expenses* expenses* -------------- ---------- --------- --------- Kemper High Yield 0.65% None 0.36% 1.01% Opportunity Fund Kemper Income and 0.53% None 0.13% 0.66% Capital Preservation Fund Kemper U.S. 0.51% None 0.13% 0.64% Mortgage Fund - ----------- * Estimated for Kemper Adjustable Rate U.S. Government Fund, Kemper Short-Intermediate Government Fund, Kemper Diversified Income Fund, Kemper High Yield Opportunity Fund and Kemper U.S. Mortgage Fund since no Class I shares were issued as of the respective fiscal year ends. Example This example is to help you compare the cost of investing in a 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 return vary from year to year, and may be higher or lower than those shown. Fees and expenses if you sold shares after: 1 Year 3 Years 5 Years 10 Years ------ ------- ------- -------- Kemper Adjustable Rate U.S. Government Fund $86 $268 $466 $1,037 Kemper Short-Intermediate Government Fund $76 $237 $411 $918 Kemper Diversified Income Fund $69 $218 $379 $847 Kemper U.S. Government Securities Fund $58 $183 $318 $714 Kemper High Yield Fund $61 $192 $335 $750 Kemper High Yield Opportunity Fund $103 $322 $558 $1,236 Kemper Income and Capital Preservation Fund $67 $211 $368 $822 Kemper U.S. Mortgage Fund $65 $205 $357 $798 FINANCIAL HIGHLIGHTS No financial information is presented for Class I shares of Kemper Adjustable Rate U.S. Government Fund, Kemper Short-Intermediate Government Fund, Kemper Diversified Income Fund, Kemper High Yield Opportunity Fund and Kemper U.S. Mortgage Fund, since no Class I shares were issued as of the respective fiscal year ends of the funds. Kemper U.S. Government Securities Fund July 3 to Year ended October 31, October 31, CLASS I 1998 1997 1996 1995 - -------------------------------------------------------------------------------- Per share operating performance Net asset value, beginning of period $8.81 8.74 8.92 8.88 - -------------------------------------------------------------------------------- Income from investment operations: Net investment income .59 .66 .64 .22 - -------------------------------------------------------------------------------- Net realized and unrealized gain (loss) .07 .06 (.17) .04 - -------------------------------------------------------------------------------- Total from investment operations .66 .72 .47 .26 - -------------------------------------------------------------------------------- Less distribution from net investment .62 .65 .65 .22 income - -------------------------------------------------------------------------------- Net asset value, end of period $8.85 8.81 8.74 8.92 - -------------------------------------------------------------------------------- Total return (not annualized) 7.75% 8.60 5.56 3.02 - -------------------------------------------------------------------------------- Ratios to average net assets (annualized) Expenses .57% .60 .59 .53 - -------------------------------------------------------------------------------- Net investment income 6.73% 7.52 7.35 7.07 - --------------------------------------------------------------------------------
Year ended October 31, 1998 1997 1996 1995 1994 - ----------------------------------------------------------------------------------------- Supplemental data for all classes Net assets at end of year (in thousands) $3,442,212 3,642,027 4,163,157 4,738,415 4,941,151 - ----------------------------------------------------------------------------------------- Portfolio turnover rate 150% 261 391 362 1,000 - -----------------------------------------------------------------------------------------
Note: Total return does not reflect the effect of any sales charges. Per share data were determined based on average shares outstanding during the year ended October 31, 1998. Kemper High Yield Fund December 29, 1994 to Year ended September 30, September 30, CLASS I 1998 1997 1996 1995 - -------------------------------------------------------------------------------- Per share operating performance Net asset value, beginning $8.50 8.23 8.01 7.55 of period - -------------------------------------------------------------------------------- Income from investment operations: Net investment income .76 .78 .78 .66 - -------------------------------------------------------------------------------- Net realized and unrealized (.78) .31 .23 .39 gain (loss) - -------------------------------------------------------------------------------- Total from investment operations (.02) 1.09 1.01 1.05 - -------------------------------------------------------------------------------- Less distribution from net .80 .82 .79 .59 investment income - -------------------------------------------------------------------------------- Net asset value, end of period $7.68 8.50 8.23 8.01 - -------------------------------------------------------------------------------- Total return (not annualized) (.66)% 13.96 13.32 14.37 - -------------------------------------------------------------------------------- Ratios to average net assets (annualized) Expenses .60% .62 .61 .61 - -------------------------------------------------------------------------------- Net investment income 9.38% 9.44 9.72 10.70 - -------------------------------------------------------------------------------- Year ended September 30, 1998 1997 1996 1995 1994 - -------------------------------------------------------------------------------- Supplemental data for all classes Net assets at end of year (in thousands) $4,784,262 4,939,302 4,096,939 3,527,954 3,152,029 - -------------------------------------------------------------------------------- Portfolio turnover rate 92% 91 102 99 93 - -------------------------------------------------------------------------------- Note: Total return does not reflect the effect of any sales charges. Kemper Income and Capital Preservation Fund July 3 to Year ended October 31, October 31, CLASS I 1998 1997 1996 1995 - -------------------------------------------------------------------------------- Per share operating performance Net asset value, beginning $8.53 8.45 8.61 8.52 of period - -------------------------------------------------------------------------------- Income from investment operations: Net investment income .56 .59 .60 .19 - -------------------------------------------------------------------------------- Net realized and unrealized .15 .08 (.15) .12 gain (loss) - -------------------------------------------------------------------------------- Total from investment operations .71 .67 .45 .31 - -------------------------------------------------------------------------------- Less distribution from net .57 .59 .61 .22 investment income - -------------------------------------------------------------------------------- Net asset value, end of period $8.67 8.53 8.45 8.61 - -------------------------------------------------------------------------------- Total return (not annualized) 8.62% 8.26 5.45 3.65 - -------------------------------------------------------------------------------- Ratios to average net assets (annualized) Expenses .66% .70 .72 .62 - -------------------------------------------------------------------------------- Net investment income 6.52% 7.02 7.14 6.87 - -------------------------------------------------------------------------------- Year ended October 31, 1998 1997 1996 1995 1994 - -------------------------------------------------------------------------------- Supplemental data for all classes Net assets at end of year (in thousands) $694,057 613,470 572,998 649,427 510,432 - -------------------------------------------------------------------------------- Portfolio turnover rate 121% 164 74 182 163 - -------------------------------------------------------------------------------- Note: Total return does not reflect the effect of any sales charges. SPECIAL FEATURES Shareholders of a Fund's Class I shares may exchange their shares for (i) shares of Zurich Money Funds -- Zurich Money Market Fund if the shareholders of Class I shares have purchased shares because they are participants in tax-exempt retirement plans of Scudder Kemper and its affiliates and (ii) Class I shares of any other "Kemper Mutual Fund" listed in the prospectus. Conversely, shareholders of Zurich Money Funds -- Zurich Money Market Fund who have purchased shares because they are participants in tax-exempt retirement plans of Scudder Kemper and its affiliates may exchange their shares for Class I shares of "Kemper Mutual Funds" to the extent that they are available through their plan. Exchanges will be made at the relative net asset values of the shares. Exchanges are subject to the limitations set forth in the prospectus. -----END PRIVACY-ENHANCED MESSAGE-----