<PAGE> 1
VAN KAMPEN AMERICAN CAPITAL
HIGH INCOME CORPORATE BOND FUND
SUPPLEMENT DATED JULY 21, 1997 TO THE PROSPECTUS DATED DECEMBER 29, 1996, AS
PREVIOUSLY SUPPLEMENTED ON FEBRUARY 11, 1997.
At a meeting of the Board of Trustees of the Fund held on April 14-15,
1997, the Board of Trustees approved, subject to obtaining shareholder approval,
changes to three of the Fund's fundamental investment restrictions as follows:
(i) eliminating the Fund's fundamental investment restriction on "unseasoned
issuers" to permit the Fund to invest without limitation in securities of
issuers that have been in continuous operation for less than three years: (ii)
eliminating that portion of the Fund's fundamental investment restriction that
limits the Fund to investing no more than 10% of any class of securities of any
one issuer; and (iii) eliminating the Fund's fundamental investment restriction
on investing in foreign securities and non-U.S. dollar-denominated securities.
In addition, the Board adopted a non-fundamental investment policy (which means
it may be amended from time-to-time by the Board of Trustees without shareholder
approval) limiting the Fund to investing up to 35% of total assets in securities
of foreign governments or other foreign issuers. At a special shareholders
meeting of the Fund held on May 28, 1997, the Fund received the necessary
shareholder approval to terminate or amend the fundamental investment
restrictions. The Fund believes that each of these changes provides the Fund
with greater flexibility in achieving its investment objective.
The Fund hereby deletes the fundamental investment restrictions numbered 4
and 5 on page 20 and hereby restates in its entirety fundamental investment
restriction number 2 on pages 19-20 as follows:
The Fund will not, with respect to 75% of its assets, invest more than 5%
of its assets in the securities of any one issuer (except the U.S.
Government) or purchase more than 10% of the outstanding voting securities
of any one issuer, except that the Fund may purchase securities of other
investment companies to the extent permitted by (i) the 1940 Act, as
amended from time to time, (ii) the rules and regulations promulgated by
the SEC under the 1940 Act, as amended from time to time, or (iii) an
exemption or other relief from the provisions of the 1940 Act.
In addition, references herein to limits on investing in foreign securities
or non-U.S. dollar denominated securities are deleted and replaced with the
following non-fundamental investment policy:
The Fund may invest up to 35% of its total assets in securities issued by
foreign governments and other foreign issuers. Such securities may be
denominated in U.S. dollars or in currencies other than U.S. dollars.
<PAGE> 2
VAN KAMPEN AMERICAN CAPITAL
HIGH INCOME CORPORATE BOND FUND
SUPPLEMENT DATED JULY 21, 1997 TO THE STATEMENT OF ADDITIONAL INFORMATION
DATED DECEMBER 29, 1996, AS PREVIOUSLY SUPPLEMENTED ON JANUARY 21, 1997.
At a meeting of the Board of Trustees of the Fund held on April 14-15,
1997, the Board of Trustees approved, subject to obtaining shareholder approval,
changes to three of the Fund's fundamental investment restrictions as follows:
(i) eliminating the Fund's fundamental investment restriction on "unseasoned
issuers" to permit the Fund to invest without limitation in securities of
issuers that have been in continuous operation for less than three years: (ii)
eliminating that portion of the Fund's fundamental investment restriction that
limits the Fund to investing no more than 10% of any class of securities of any
one issuer; and (iii) eliminating the Fund's fundamental investment restriction
on investing in foreign securities and non-U.S. dollar-denominated securities.
In addition, the Board adopted a non-fundamental investment policy (which means
it may be amended from time-to-time by the Board of Trustees without shareholder
approval) limiting the Fund to investing up to 35% of total assets in securities
of foreign governments or other foreign issuers. At a special shareholders
meeting of the Fund held on May 28, 1997, the Fund received the necessary
shareholder approval to terminate or amend the fundamental investment
restrictions. The Fund believes that each of these changes provides the Fund
with greater flexibility in achieving its investment objective.
The Fund hereby deletes the fundamental investment restrictions numbered 16
and 17 on page B-11 and hereby restates in its entirety fundamental investment
restriction number 14 on page B-11 as follows:
The Fund will not, with respect to 75% of its assets, invest more than 5%
of its assets in the securities of any one issuer (except the U.S.
Government) or purchase more than 10% of the outstanding voting securities
of any one issuer, except that the Fund may purchase securities of other
investment companies to the extent permitted by (i) the 1940 Act, as
amended from time to time, (ii) the rules and regulations promulgated by
the SEC under the 1940 Act, as amended from time to time, or (iii) an
exemption or other relief from the provisions of the 1940 Act.
In addition, references herein to limits on investing in foreign securities
or non-U.S. dollar denominated securities are deleted and replaced with the
following non-fundamental investment policy:
The Fund may invest up to 35% of its total assets in securities issued by
foreign governments and other foreign issuers. Such securities may be
denominated in U.S. dollars or in currencies other than U.S. dollars.
<PAGE> 3
VAN KAMPEN AMERICAN CAPITAL
JULY 21, 1997 SUPPLEMENT TO STATEMENTS OF ADDITIONAL INFORMATION
Statement of Additional Information dated December 29, 1996
as previously supplemented on January 21, 1997
VKAC Corporate Bond Fund
VKAC Emerging Growth Fund
VKAC High Income Corporate Bond Fund
Statement of Additional Information dated December 29, 1996
VKAC Government Target Fund
Statement of Additional Information dated February 28, 1997
VKAC Small Capitalization Fund
Statement of Additional Information dated March 28, 1997
VKAC Growth and Income Fund
VKAC High Yield Municipal Fund
Statement of Additional Information dated October 28, 1996
as previously supplemented January 21, 1997
VKAC Pace Fund
Statement of Additional Information dated September 28, 1996
as previously supplemented on January 21, 1997
VKAC Reserve Fund
VKAC Global Equity Fund
VKAC Global Government Securities Fund
Statement of Additional Information dated January 28, 1997
VKAC U.S. Government Trust for Income
The section of the Statement of Additional Information entitled the
Trustees and Officers is hereby supplemented by adding Philip B. Rooney,
effective April 14, 1997, and Richard M. DeMartini, effective May 31, 1997, as
Trustees of the Fund.
Mr. Rooney is Vice Chairman and Director of The ServiceMaster Company, a
business and consumer services company since May of 1997. Mr. Rooney is a
Director of Illinois Tool Works, Inc., a manufacturing company; the Urban
Shopping Centers Inc., a retail mall management company; and Stone Container
Corp., a paper manufacturing company. Trustee, University of Notre Dame.
Formerly, President and Chief Executive Officer, Waste Management Inc., an
environmental services company, and prior to that President and Chief Operating
Officer, Waste Management Inc. Trustee of each of the funds in the Fund Complex.
Mr. Rooney's principal business address is One ServiceMaster Way, Downers Grove,
IL 60515, and his date of birth is 07/08/44.
Mr. DeMartini is President and Chief Operating Officer, Dean Witter
Capital, a division of Dean Witter Reynolds Inc. Mr. DeMartini is a Director of
InterCapital Funds, Dean Witter Distributors, Inc. and Dean Witter Trust
Company. Trustee of the TCW/DW Funds. Director of the National Healthcare
Resources, Inc. Formerly Vice Chairman of the Board of the National Association
of Securities Dealers, Inc. and Chairman of the Board of The Nasdaq Stock
Market, Inc. Trustee of each of the funds in the Fund Complex. Mr. DeMartini's
principal business address is Two World Trade Center, 66th Floor, New York, NY
10048, and his date of birth is 10/12/52.
Dennis J. McDonnell resigned as a Trustee of the Fund, effective May 31,
1997.
