-----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, MF/1iP1VRTZ10UyOHnAiwS4bbQkVII4h6Yje8h1gPX1JitcjuZkYzXBckkRkWOvP 0NArlE5ZNP+pd6CllrqI4A== 0000088053-00-000175.txt : 20000207 0000088053-00-000175.hdr.sgml : 20000207 ACCESSION NUMBER: 0000088053-00-000175 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20000204 FILER: COMPANY DATA: COMPANY CONFORMED NAME: KEMPER BLUE CHIP FUND CENTRAL INDEX KEY: 0000823342 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 363542349 STATE OF INCORPORATION: MA FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 497 SEC ACT: SEC FILE NUMBER: 033-17777 FILM NUMBER: 523674 BUSINESS ADDRESS: STREET 1: 222 SOUTH 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 497 1 SUPPLEMENT TO PROSPECTUS DATED 02/01/00 Kemper Equity Funds/Growth Style Kemper Aggressive Growth Fund Kemper Blue Chip Fund Kemper Growth Fund Kemper Small Capitalization Equity Fund Kemper Technology Fund Kemper Total Return Fund Kemper Value+Growth Fund SUPPLEMENT TO PROSPECTUS DATED FEBRUARY 1, 2000 CLASS I SHARES - -------------------------------------------------------------------------------- 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; and (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. 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. Performance The table shows how the funds' returns over different periods average out. For context, the table has market indices (which, unlike the funds, have no fees or expenses). All figures on this page assume reinvestment of dividends and distributions. As always, past performance is no guarantee of future results. No performance data are available for the Class I shares of Kemper Aggressive Growth Fund and Kemper Value+Growth Fund. Average Annual Total Returns (as of 12/31/1999) Since 12/31/98 Since 7/3/95 Since 11/22/95 1 Year Life of Class Life of Class - -------------------------------------------------------------------------------- Kemper Blue Chip Fund 26.37% -- 24.00% Index 1 21.04 -- 26.40* Index 2 20.91 -- 25.63* Kemper Growth Fund 37.44 22.01% -- Index 1 21.04 26.90** -- Index 3 33.16 31.12** -- Kemper Small Capitalization Equity Fund 34.26 17.42 -- Index 1 21.04 26.90** -- Index 4 21.26 15.21** -- Index 5 43.09 17.39** -- Kemper Technology Fund 115.09 39.09 -- Index 1 21.04 26.90** -- Index 3 33.16 31.12** -- Index 6 123.33 45.57** -- 2 Since 12/31/98 Since 7/3/95 Since 11/22/95 1 Year Life of Class Life of Class - -------------------------------------------------------------------------------- Kemper Total Return Fund 15.08 17.23 -- Index 1 21.04 26.90** -- Index 3 33.16 31.12** -- Index 7 -2.15 5.83** -- * Index comparison begins November 30, 1995 ** Index comparison begins June 30, 1995 Index 1: Standard & Poor's 500 Composite Stock Price Index (S&P 500), an unmanaged capitalization-weighted index that includes 500 large-cap U.S. stocks. Index 2: Russell 1000 Index, an unmanaged price-only index of the 1,000 largest capitalized companies that are domiciled in the United States and whose common stocks are traded there. Index 3: Russell 1000 Growth Index, an unmanaged capitalization-weighted index containing the growth stocks in the Russell 1000 Index. Index 4: Russell 2000 Index, an unmanaged capitalization-weighted measure of approximately 2,000 small U.S. stocks. Index 5: Russell 2000 Growth Index, an unmanaged capitalization-weighted index containing the growth stocks in the Russell 2000 Index. Index 6: Hambrecht & Quist Index, an unmanaged index composed of approximately 275 technology stocks, including companies from five technology groups: computer hardware, computer software, communications, semiconductors and information services. Index 7: Lehman Brothers Government/Corporate Bond Index, an unmanaged index of government and investment-grade corporate debt securities of intermediate- and long-term maturities. 3 How much investors pay This table describes the fees and expenses that you may pay if you buy and hold shares of a fund. Shareholder fees: Fees paid directly from your investment. Maximum Sales Maximum Charge Deferred (Load) Sales Maximum Redemption Imposed on Charge Sales Fee (as % Purchases (Load) (as Charge on of amount (as % of % of Reinvested redeemed, Offering Redemption Dividends/ if Exchange Price) Proceeds) Distributions applicable) Fee - -------------------------------------------------------------------------------- Kemper Aggressive Growth Fund None None None None None - -------------------------------------------------------------------------------- Kemper Blue Chip Fund None None None None None - -------------------------------------------------------------------------------- Kemper Growth Fund None None None None None - -------------------------------------------------------------------------------- Kemper Small Capitalization Equity Fund None None None None None - -------------------------------------------------------------------------------- Kemper Technology Fund None None None None None - -------------------------------------------------------------------------------- Kemper Total Return Fund None None None None None - -------------------------------------------------------------------------------- Kemper Value+Growth Fund None None None None None - -------------------------------------------------------------------------------- 4 Annual fund operating expenses: Expenses that are deducted from fund assets. Total Distribu- Annual Investment tion Fund management (12b-1) Other Operating Fee Fees Expenses* Expenses - -------------------------------------------------------------------------------- Kemper Aggressive Growth Fund 0.41% None 0.45% 0.86% - -------------------------------------------------------------------------------- Kemper Blue Chip Fund 0.56% None 0.24% 0.80% - -------------------------------------------------------------------------------- Kemper Growth Fund 0.54% None 0.21% 0.75% - -------------------------------------------------------------------------------- Kemper Small Capitalization Equity Fund 0.65% None 0.03% 0.68% - -------------------------------------------------------------------------------- Kemper Technology Fund 0.53% None 0.08% 0.61% - -------------------------------------------------------------------------------- Kemper Total Return Fund 0.53% None 0.21% 0.74% - -------------------------------------------------------------------------------- Kemper Value+Growth Fund 0.70% None 0.33% 1.03% - -------------------------------------------------------------------------------- * "Other Expenses" are restated to reflect changes in certain administrative and regulatory fees. Example Based on the figures above, this example is designed to help you compare the expenses of a fund to those of other funds. The example assumes operating expenses remain the same and that you invested $10,000, earned 5% annual returns and reinvested all dividends and distributions. This is only an example; actual expenses will be different. 1 Year 3 Years 5 Years 10 Years - -------------------------------------------------------------------------------- Kemper Aggressive Growth Fund $88 $274 $477 $1,061 - -------------------------------------------------------------------------------- Kemper Blue Chip Fund $82 $255 $444 $990 - -------------------------------------------------------------------------------- Kemper Growth Fund $77 $240 $417 $930 - -------------------------------------------------------------------------------- Kemper Small Capitalization Equity Fund $69 $218 $379 $847 - -------------------------------------------------------------------------------- Kemper Technology Fund $62 $195 $340 $762 - -------------------------------------------------------------------------------- Kemper Total Return Fund $76 $237 $411 $918 - -------------------------------------------------------------------------------- Kemper Value+Growth Fund $105 $328 $569 $1,259 - -------------------------------------------------------------------------------- 5 Financial Highlights Kemper Blue Chip Fund November 22, 1995 to Year ended October 31, October 31, CLASS I 1999 1998 1997 1996 - -------------------------------------------------------------------------------- Per share operating performance Net asset value, beginning of period $16.68 17.72 17.18 15.30 - -------------------------------------------------------------------------------- Income from investment operations: Net investment income .13 .21 .32 .36 - -------------------------------------------------------------------------------- Net realized and unrealized gain 4.60 1.19 3.58 2.96 - -------------------------------------------------------------------------------- Total from investment operations 4.73 1.40 3.90 3.32 - -------------------------------------------------------------------------------- Less distributions from: Net investment income -- .25 .23 .24 - -------------------------------------------------------------------------------- Net realized gain .42 2.19 3.13 1.20 - -------------------------------------------------------------------------------- Total dividends .42 2.44 3.36 1.44 - -------------------------------------------------------------------------------- Net asset value, end of period $20.99 16.68 17.72 17.18 - -------------------------------------------------------------------------------- Total return (not annualized) 28.81% 8.53 26.89 21.89 - -------------------------------------------------------------------------------- Ratios to average net assets (annualized) - -------------------------------------------------------------------------------- Expenses, before expense reductions .72% .68 .70 1.31 - -------------------------------------------------------------------------------- Expenses, net .72% .68 .70 1.31 - -------------------------------------------------------------------------------- Net investment income (loss) .60% 1.23 1.56 1.33 - -------------------------------------------------------------------------------- Year ended October 31, 1999 1998 1997 1996 1995 - -------------------------------------------------------------------------------- Supplemental data for all classes Net assets at end of period (in thousands) $915,008 581,770 446,891 256,172 168,266 - -------------------------------------------------------------------------------- Portfolio turnover rate (annualized) 75% 157 183 166 117 - -------------------------------------------------------------------------------- Note: Per share data for the year ended October 31, 1999 was determined based on average shares outstanding. 6 Kemper Growth Fund July 3 to September Year ended September 30, 30, CLASS I 1999 1998 1997 1996 1995 - -------------------------------------------------------------------------------- Per share operating performance Net asset value, beginning of period $11.88 15.60 17.26 16.09 14.80 - -------------------------------------------------------------------------------- Income from investment operations: Net investment income -- .05 .08 .19 .03 - -------------------------------------------------------------------------------- Net realized and unrealized gain (loss) 4.25 (1.68) 2.61 2.74 1.26 - -------------------------------------------------------------------------------- Total from investment operations 4.25 (1.63) 2.69 2.93 1.29 - -------------------------------------------------------------------------------- Less dividends: Distribution from net investment income -- -- -- .08 -- - -------------------------------------------------------------------------------- Distribution from net realized gain .06 2.09 4.35 1.68 -- - -------------------------------------------------------------------------------- Total dividends .06 2.09 4.35 1.76 -- - -------------------------------------------------------------------------------- Net asset value, end of period $16.07 11.88 15.60 17.26 16.09 - -------------------------------------------------------------------------------- Total return (not annualized) 35.82% (11.45) 20.51 20.19 8.72 - -------------------------------------------------------------------------------- Ratios to average net assets (annualized) - -------------------------------------------------------------------------------- Expenses .71% .65 .70 .64 .59 - -------------------------------------------------------------------------------- Net investment income (loss) (.02)% .30 .43 1.08 .92 - -------------------------------------------------------------------------------- Year ended September 30, 1999 1998 1997 1996 1995 - -------------------------------------------------------------------------------- Supplemental data for all classes Net assets at end of year (in thousands) $2,578,244 2,209,521 2,827,565 2,738,303 2,503,301 - -------------------------------------------------------------------------------- Portfolio turnover rate 97% 122 201 150 67 - -------------------------------------------------------------------------------- Note: Per share data for years ended September 30, 1999 and September 30, 1998 were determined based on average shares outstanding. 7 Kemper Small Capitalization Equity Fund July 3 to September Year ended September 30, 30, CLASS I 1999 1998 1997 1996 1995 - -------------------------------------------------------------------------------- Per share operating performance Net asset value, beginning of year $5.39 8.07 7.05 7.15 6.27 - -------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) (.01) -- .01 .01 -- - -------------------------------------------------------------------------------- Net realized and unrealized gain (loss) 1.30 (1.87) 1.58 .94 .88 - -------------------------------------------------------------------------------- Total from investment operations 1.29 (1.87) 1.59 .95 .88 - -------------------------------------------------------------------------------- Less distributions from net realized gain .41 .81 .57 1.05 -- - -------------------------------------------------------------------------------- Net asset value, end of year $6.27 5.39 8.07 7.05 7.15 - -------------------------------------------------------------------------------- Total return 24.66% (24.82) 24.89 16.76 14.04 - -------------------------------------------------------------------------------- Ratios to average net assets (annualized) - -------------------------------------------------------------------------------- Expenses .58% .48 .53 .66 .79 - -------------------------------------------------------------------------------- Net investment income (loss) (.21)% .04 .17 .16 (.14) - -------------------------------------------------------------------------------- Year ended September 30, 1999 1998 1997 1996 1995 - -------------------------------------------------------------------------------- Supplemental data for all classes Net assets at end of year (in thousands) $721,926 718,349 1,095,478 934,075 839,905 - -------------------------------------------------------------------------------- Portfolio turnover rate 133% 86 102 85 102 - -------------------------------------------------------------------------------- Note: Per share data for the years ended September 30, 1999, and September 30, 1996 were determined based on average shares outstanding. 8 Kemper Technology Fund July 3 to October Year ended October 31, 31, CLASS I 1999 1998 1997 1996 1995 - -------------------------------------------------------------------------------- Per share operating performance Net asset value, beginning of period $11.86 13.19 13.20 14.64 12.72 - -------------------------------------------------------------------------------- Income from investment operations: Net investment loss (.02) (.02) (.04) (.07) (.02) - -------------------------------------------------------------------------------- Net realized and unrealized gain 10.77 .83 2.14 .76 1.94 - -------------------------------------------------------------------------------- Total from investment operations 10.75 .81 2.10 .69 1.92 - -------------------------------------------------------------------------------- Less distribution from net realized gain 1.07 2.14 2.11 2.13 -- - -------------------------------------------------------------------------------- Net asset value, end of period $21.54 11.86 13.19 13.20 14.64 - -------------------------------------------------------------------------------- Total return (not annualized) 95.39% 8.44 17.23 8.06 15.09 - -------------------------------------------------------------------------------- Ratios to average net assets (annualized) - -------------------------------------------------------------------------------- Expenses, before expense reductions .65% .67 .74 .76 .65 - -------------------------------------------------------------------------------- Expenses, net .64% .67 .74 .76 .65 - -------------------------------------------------------------------------------- Net investment loss (.09)% (.12) (.27) (.49) (.33) - -------------------------------------------------------------------------------- Year ended October 31, 1999 1998 1997 1996 1995 - -------------------------------------------------------------------------------- Supplemental data for all classes Net assets at end of year (in thousands) $2,805,651 1,247,991 1,209,723 1,062,813 1,017,955 - -------------------------------------------------------------------------------- Portfolio turnover rate 59% 146 192 121 105 - -------------------------------------------------------------------------------- Note: Per share data for 1995 through 1999 was determined based on average shares outstanding. 9 Kemper Total Return Fund July 3 to October Year ended October 31, 31, CLASS I 1999(a) 1998 1997 1996 1995 - -------------------------------------------------------------------------------- Per share operating performance Net asset value, beginning of period $10.54 11.33 11.27 10.61 10.07 - -------------------------------------------------------------------------------- Income from investment operations: Net investment income .34 .34 .36 .32 .10 - -------------------------------------------------------------------------------- Net realized and unrealized gain 1.53 .77 1.55 1.23 .52 - -------------------------------------------------------------------------------- Total from investment operations 1.87 1.11 1.91 1.55 .62 - -------------------------------------------------------------------------------- Less dividends: Distribution from net investment income .35 .35 .36 .39 .08 - -------------------------------------------------------------------------------- Distribution from net realized gain .68 1.55 1.49 .50 -- - -------------------------------------------------------------------------------- Total dividends 1.03 1.90 1.85 .89 .08 - -------------------------------------------------------------------------------- Net asset value, end of period $11.38 10.54 11.33 11.27 10.61 - -------------------------------------------------------------------------------- Total return (not annualized) 18.65% 10.98 19.40 15.64 6.21 - -------------------------------------------------------------------------------- Ratios to average net assets (annualized) - -------------------------------------------------------------------------------- Expenses, before expense reductions .67% .64 .71 .72 .61 - -------------------------------------------------------------------------------- Expenses, net .67% .64 .71 .72 .61 - -------------------------------------------------------------------------------- Net investment income 3.06% 3.12 3.22 3.09 2.97 - -------------------------------------------------------------------------------- Year ended October 31, 1999 1998 1997 1996 1995 - -------------------------------------------------------------------------------- Supplemental data for all classes Net assets at end of year (in thousands) $3,682,023 3,321,254 3,241,383 3,020,798 2,926,542 - -------------------------------------------------------------------------------- Portfolio turnover rate (annualized) 64% 80 122 85 142 - -------------------------------------------------------------------------------- (a) Per share data was determined based on monthly average shares outstanding during the period. 10 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 Statement of Additional Information. 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. February 1, 2000 -----END PRIVACY-ENHANCED MESSAGE-----