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VAN KAMPEN SENIOR FLOATING RATE FUND
SUPPLEMENT DATED FEBRUARY 26, 1999
TO THE PROSPECTUS DATED DECEMBER 9, 1998
The fifth paragraph under the section of the prospectus entitled "Investment
Objectives and Policies" on page 4 is deleted and replaced with the following:
Following are some of the Fund's other important investment policies: The
Fund may invest up to 20% of its assets in Senior Loans that are not secured by
any specific collateral. The Fund may invest up to 20% of its total assets in
Senior Loans made to non-U.S. Borrowers. These Senior Loans must, however, be
U.S. dollar denominated and pay principal and interest in U.S. dollars. The Fund
may invest up to 20% of its total assets in any combination of the following:
(1) warrants, equity securities and junior debt securities in each case that are
acquired in connection with the acquisition, restructuring or disposition of a
Senior Loan, and (2) high quality short-term debt securities.
The section of the prospectus entitled "Investment in Non-U.S. Issuers" on
pages 6 and 14 is deleted and replaced with the following:
Investment in Non-U.S. Issuers. The Fund may invest up to 20% of its total
assets, measured at the time of investment, in U.S. dollar denominated Senior
Loans to Borrowers that are organized or located in countries other than the
United States. Although the Senior Loans will require payment of interest and
principal in U.S. dollars, these Borrowers may have significant non-U.S. dollar
revenues. Investment in non-U.S. issuers involves special risks, including that
non-U.S. issuers may be subject to less rigorous accounting and reporting
requirements than U.S. issuers, less rigorous regulatory requirements, differing
legal systems and laws relating to creditors' rights, the potential inability to
enforce legal judgements, fluctuations in currency values and the potential for
political, social and economic adversity.
The first paragraph under the section of the prospectus entitled "Borrowers"
on page 9 is deleted and replaced with the following:
Borrowers. Senior Loans are loans made to corporations, partnerships and other
entities ("Borrowers"). Borrowers operate in a variety of industries and
geographic regions. The Fund does not intend to invest more that 5% of its total
assets in Senior Loans of a single Borrower. In addition, the Fund will not
invest more than 25% of its total assets in Borrowers that conduct their
principal businesses in the same industry. Most Senior Loans are made to U.S.
Borrowers. The Fund may, however, invest up to 20% of its total assets in Senior
Loans made to non-U.S. Borrowers. These Senior Loans must be U.S. dollar
denominated and pay principal and interest in U.S. dollars. Investing in Senior
Loans of non-U.S. Borrowers involves special risks. See "Special Risk
Considerations - Investment in Non-U.S. Issuers."
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PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
SFR SPT 2/99
