No. of Recommendations: 1
Ahh Bond funds. Is there a worst investment? Oh yes, Fannie Mae's. But thats another story.

1. About a year ago my mother-in-law gives my daughter a $1000 bond fund as a gift, through Bank United Securities of Houston, TX.
If your daughter is young sell it and get into a quality stock fund or indivdual stock.(I bought a few shares (10) of DIS for my 4 year old not because I thought it the best stock but because it is a good company and the certificate has the Disney characters on it. I am hoping it will be a good launching point to discuss money matters with her.

2. Management of the fund is changed in Apr 1999 to BNY Clearing, who then changes the account to "Kemper Dreman High Return CL B".
Kemper is a legitmate company, you should be able to get some satisfaction from them.

3. Account statements start showing account DECREASING in value.
Here's my beef with bond funds. Unlike owning a bond, there is no future guaruntee that you will get your money back. In periods of rising interest rates, like we are in now, bond funds will get slammed. Look at what happened in 1994 as an example. You are taking as much risk with your pricipal as you are with a stock fund. To get higher dividend payments (note the word dividend, not interest) the fund manager has to take bigger bets on risker investments, thus multiplying negative effects of a bad market.

4. I become aware of the existence of this account, read all available statements.
5. It seems that the fund is withholding a little each month for tax purposes, but the amount they are withholding is about 120% of interest earned, PLUS our tax statement this year for the fund shows $0 withheld.
Can't help you there, call Kemper and tell them you either demand satisfation or the next call will be from your lawyer.(To save money call and pretend your the lawyer:>)
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