<PAGE>
TABLE OF CONTENTS
<TABLE>
<S> <C>
Letter to Shareholders...................... 1
Portfolio of Investments.................... 3
Statement of Assets and Liabilities......... 6
Statement of Operations..................... 7
Statement of Changes in Net Assets.......... 7
Financial Highlights........................ 8
Notes to Financial Statements............... 9
</TABLE>
BOND SAR 2/96
<PAGE>
LETTER TO SHAREHOLDERS
[PHOTO OF DENNIS J. MCDONNELL AND DON G. POWELL]
January 30, 1996
Dear Shareholder,
For most investors, it would be hard to surpass the success enjoyed during
the second half of 1995. After getting off to a strong start in the first half
of the year, the stock and bond markets continued to enjoy substantial gains,
driven by a combination of continuing economic growth and low inflation.
As we reflect on the past six months, it is important to remember that the
key to successful investing is to maintain a long-term perspective. While the
environment for stocks and bonds remains positive, it is unlikely that 1996
will see a repeat of the markets' strong 1995 performance. However, over the
long-term, stocks have outperformed virtually all other types of investments,
and bonds have met the needs of investors who seek capital preservation and
regular income.
ECONOMIC OVERVIEW
The rate of economic growth slowed during the second half of 1995, as mea-
sured by the gross domestic product (the value of all goods and services pro-
duced in the United States). GDP grew at an annual rate of more than 4 percent
in the third quarter of 1995, but slowed to an estimated 2 to 3 percent in the
fourth quarter of the year, with retail and auto sales particularly sluggish.
The slower growth rate eased concerns about a rise in inflation and allowed
the Federal Reserve Board in late December to lower short-term interest rates
by a quarter-percentage point. Just as the Fed's raising of short-term rates
in 1994 helped slow economic growth in 1995, the reduction in rates during the
latter half of 1995 was expected to help generate moderate economic growth in
1996.
The cut in short-term rates, combined with modest growth forecasts, was
viewed by the financial markets as a positive event, pushing up both stock and
bond prices. For the six months ended December 31, 1995, the Standard & Poor's
500-Stock Index achieved a total return of 14.40 percent. The yield on 10-year
Treasury notes was 5.57 percent on December 31, compared to 6.20 percent on
June 30. Bond prices and yields move in opposite directions, so bonds rose.
Many observers expect the Fed to cut rates further if Congress and the Presi-
dent are able to reach an agreement on the federal budget, provided economic
conditions justify further easing.
PERFORMANCE SUMMARY
Because of their somewhat higher level of credit risk, investment grade cor-
porate bonds typically offer higher yields than U.S. government bonds of com-
parable maturity. And, like all bonds, those issued by corporations appreciate
in value when interest rates drop notwithstanding a credit problem. Both fac-
tors contributed to a strong performance for the six-month period
Continued on page two
1
<PAGE>
ended December 31, 1995. Van Kampen American Capital Bond Fund, Inc., formerly
American Capital Bond Fund, Inc., produced a six-month total return at market
price of 6.68 percent. This return reflects an increase in market price per
share on the New York Stock Exchange from $19.13 on June 30, 1995, to $19.63 on
December 31, 1995, and reinvestment of dividends totaling $0.77 per share. For
the same period, the Lehman Brothers Corporate Bond Index produced a total re-
turn of 7.42 percent. The Index is a broad-based, unmanaged index that reflects
the general performance of corporate bonds and does not reflect any commissions
or fees that would be paid by an investor purchasing the securities it repre-
sents.
As of December 31, 1995, the Fund's net assets were invested primarily in a
mixture of AA-, A- and BBB-rated securities.
CORPORATE NEWS
As you may have noticed in the performance summary, your Fund has a new name.
At the beginning of January all former Van Kampen Merritt and American Capital
closed-end funds assumed the Van Kampen American Capital name. Please look un-
der the new heading "VnKmAC" to find your Fund's price in your daily newspaper.
OUTLOOK
Looking ahead, we are cautiously optimistic. We expect the economy to grow at
a rate of 2 to 3 percent throughout 1996, with growth stronger in the second
half of the year as the full impact of the Fed's rate cuts take effect. Lower
rates will have the greatest impact on interest-sensitive industries, such as
housing. Although inflation appears to be under control, there probably will be
some upward pressure in 1996 as lower interest rates generate increased eco-
nomic activity.
The current economic conditions are ideal for bonds. In the near-term, we be-
lieve domestic markets will benefit from a stable U.S. dollar and increased
business activity driven in part by a number of recently announced strategic
reorganizations of some of the nation's blue chip industry leaders.
During recent months, debate over tax reform and the federal deficit has dom-
inated the agenda in Washington. Now that we are in a presidential election
year, tax reform likely will replace the budget battle as the top issue in
Washington. There has been varied speculation about the impact of these issues
on the economy and on various types of investments. We are following the tax
reform debate very closely, and we will keep you updated on this issue through-
out the year.
We appreciate your continued confidence in your investment with Van Kampen
American Capital, and we look forward to communicating with you again regarding
the performance of your Fund.
Sincerely,
/s/ Don G. Powell /s/ Dennis J. McDonnell
Don G. Powell Dennis J. McDonnell
Chairman President
Van Kampen American Capital Van Kampen American Capital
Asset Management, Inc. Asset Management, Inc.
2
<PAGE>
PORTFOLIO OF INVESTMENTS
December 31, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
CORPORATE OBLIGATIONS 87.4%
CONSUMER DISTRIBUTION 0.5%
$ 1,000 Grand Metropolitan Investment Corp.... 8.000% 09/15/22 $ 1,160,850
------------
CONSUMER NON-DURABLES 2.0%
4,000 Coca-Cola Enterprises, Inc............ 8.500 02/01/12 4,800,400
------------
CONSUMER SERVICES 15.1%
2,500 Columbia Pictures Entertainment, Inc.. 9.875 02/01/98 2,710,750
3,000 Cox Communications, Inc............... 7.250 11/15/15 3,123,900
1,750 Harcourt General, Inc................. 8.875 06/01/22 2,153,900
5,000 Harcourt General, Inc................. 9.500 03/15/00 5,636,500
2,000 ITT Corp.............................. 6.250 11/15/00 2,045,000
4,400 ITT Corp.............................. 6.750 11/15/05 4,511,320
1,750 ITT Corp.............................. 7.375 11/15/15 1,807,400
1,125 New York Times Co..................... 8.250 03/15/25 1,297,575
1,000 News America Holdings, Inc............ 8.875 04/26/23 1,164,000
11,000 Tele-Communications, Inc.............. 9.250 01/15/23 12,047,200
------------
36,497,545
------------
ENERGY 6.3%
7,400 Ashland Oil, Inc...................... 8.800 11/15/12 8,862,240
5,025 PDV America, Inc...................... 7.875 08/01/03 5,088,315
1,000 Union Oil Co. of California........... 9.125 02/15/06 1,211,000
------------
15,161,555
------------
FINANCE 3.6%
166 Bank of America National Trust, Mtg
pass-through Certificate.............. 9.500 11/01/08 168,403
182 Bank of America National Trust, Mtg
pass-through Certificate.............. 9.500 01/01/09 184,694
1,970 Beaver Valley II Funding Corp......... 9.000 06/01/17 1,704,050
4,500 First PV Funding Corp., Series 1986 A. 10.300 01/15/14 4,842,000
84 Home Savings & Loan Association of
California, Second Series, Variable
Pass-Through Rate (Coupon at
12/31/95)............................. 9.609 06/01/08 80,638
1,500 United Illuminating Co................ 10.240 01/02/20 1,632,300
------------
8,612,085
------------
PRODUCER MANUFACTURING 4.5%
10,000 John Deere Credit Corp................ 9.625 11/01/98 11,019,500
------------
RAW MATERIALS/PROCESSING
INDUSTRIES 10.4%
2,000 Bowater, Inc.......................... 9.375 12/15/21 2,583,500
1,000 Crown Cork & Seal Co, Inc............. 8.000 04/15/23 1,074,300
5,000 Federal Paper Board, Inc.............. 8.875 07/01/12 5,942,500
9,500 Georgia Pacific Corp.................. 9.500 02/15/18 10,014,900
1,500 James River Corp...................... 8.375 11/15/01 1,661,145
3,100 Owens-Corning Fiberglass Corp......... 9.375 06/01/12 3,838,420
------------
25,114,765
------------
</TABLE>
See Notes to Financial Statements
3
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
TRANSPORTATION 12.7%
$ 3,000 AMR Corp.............................. 9.500% 05/15/01 $ 3,414,300
4,250 CSX Corp.............................. 8.625 05/15/22 5,195,837
2,500 Kansas City Southern Industries, Inc.. 7.875 07/01/02 2,719,250
865 Kansas City Southern Industries, Inc.. 8.800 07/01/22 980,478
10,000 Union Pacific Co...................... 8.350 05/01/25 11,258,000
6,000 United Airlines, Series 1991-A, pass-
through Certificate................... 10.020 03/22/14 7,237,800
------------
30,805,665
------------
UTILITIES 32.3%
2,000 Arizona Public Service Co............. 8.000 02/01/25 2,112,760
3,500 Arizona Public Service Co., 1st
Mortgage.............................. 8.750 01/15/24 3,964,625
3,000 Arizona Public Service Co., 1st
Mortgage.............................. 9.500 04/15/21 3,424,020
5,000 AT&T Corp............................. 8.625 12/01/31 5,817,500
6,200 Cleveland Electric Illumination Co.,
1st Mortgage, Series E................ 10.000 06/01/20 6,560,840
1,000 Commonwealth Edison Co................ 8.625 02/01/22 1,109,490
7,000 Consumers Power Co., 1st Mortgage..... 8.750 02/15/98 7,380,100
5,000 GTE North, Inc........................ 8.500 12/15/31 5,677,000
3,000 Gulf States Utilities Co.............. 8.940 01/01/22 3,257,850
3,000 Long Island Lighting Co............... 9.000 11/01/22 3,076,050
4,000 Long Island Lighting Co............... 9.750 05/01/21 4,134,600
4,150 Montana Power Co...................... 8.950 02/01/22 4,775,405
1,000 Niagara Mohawk Power Corp............. 8.500 07/15/23 949,260
7,000 Public Service Co. of Colorado........ 8.750 03/01/22 8,202,600
2,000 Southern California Gas Co., Series Y. 8.750 10/01/21 2,328,600
2,500 Texas Utiities Electric Co............ 8.875 02/01/22 2,858,250
2,500 Union Electric Co..................... 8.000 12/15/22 2,777,650
5,000 United Telecommunications, Inc........ 9.500 04/01/03 5,949,450
3,000 Utilicorp United, Inc................. 9.000 11/15/21 3,607,800
------------
77,963,850
------------
TOTAL CORPORATE OBLIGATIONS (Cost
$187,974,367)......................... 211,136,215
------------
CANADIAN GOVERNMENT OBLIGATIONS 8.4%
1,250 Province of Newfoundland.............. 8.650 10/22/22 1,497,125
4,000 Province of Newfoundland.............. 9.000 10/15/21 5,017,600
4,000 Province of Nova Scotia............... 8.250 07/30/22 4,664,800
5,500 Province of Saskatchewan.............. 8.000 02/01/13 6,270,550
2,250 Province of Saskatchewan.............. 8.500 07/15/22 2,715,525
------------
TOTAL CANADIAN GOVERNMENT OBLIGATIONS (Cost
$16,832,517) 20,165,600
------------
</TABLE>
See Notes to Financial Statements
4
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number of
Shares
(000) Description Coupon Maturity Market Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
PREFERRED STOCK 1.8%
45 Commonwealth Edison Co., $8.38 (Cost $4,276,782)..... $ 4,449,378
------------
<CAPTION>
Par
Amount
(000)
------
<C> <S> <C> <C> <C>
UNITED STATES AGENCY
OBLIGATIONS 0.0%
$ 19 Federal Home Loan Mortgage Corp..... 7.375% 12/01/02 18,931
2 Government National Mortgage
Association......................... 10.000 10/15/16 1,899
24 Government National Mortgage
Association......................... 10.000 07/15/20 26,019
------------
TOTAL UNITED STATES AGENCY
OBLIGATIONS
(Cost $44,540)...................... 46,849
------------
REPURCHASE AGREEMENT 0.4%
925 Lehman Government Securities, Inc.,
dated 12/29/95 (Collateralized by
U.S. Government obligations in a
pooled cash account) repurchase
proceeds $295,604 (Cost $925,000)... 5.875 01/02/96 925,000
------------
TOTAL INVESTMENTS (Cost $210,053,206) 98.0%.................... 236,723,042
OTHER ASSETS AND LIABILITIES, NET 2.0%......................... 4,905,966
------------
NET ASSETS 100%................................................ $241,629,008
------------
</TABLE>
See Notes to Financial Statements
5
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments, at market value (Cost $210,053,206)................. $236,723,042
Cash............................................................. 1,754
Interest and dividends receivable................................ 5,085,501
Other assets..................................................... 29,094
------------
Total Assets.................................................... 241,839,391
------------
LIABILITIES
Due to Adviser................................................... 96,291
Dividends payable................................................ 11,771
Accrued expenses................................................. 102,321
------------
Total Liabilities............................................... 210,383
------------
NET ASSETS, equivalent to $21.27 per share....................... $241,629,008
------------
NET ASSETS WERE COMPRISED OF:
Share of common stock, par value $1 per share; 15,000,000 shares
authorized;
11,362,465 shares outstanding................................... $ 11,362,465
Capital surplus.................................................. 235,011,268
Accumulated net realized loss on securities...................... (31,718,868)
Net unrealized appreciation of investments....................... 26,669,836
Undistributed net investment income.............................. 304,307
------------
NET ASSETS....................................................... $241,629,008
------------
</TABLE>
See Notes to Financial Statements
6
<PAGE>
FINANCIAL STATEMENTS
(unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
Six Months Ended
December 31, 1995
-----------------
<S> <C>
INVESTMENT INCOME
Interest..................................................... $ 9,337,306
Dividends.................................................... 187,838
-----------
Investment income........................................... 9,525,144
-----------
EXPENSES
Management fees.............................................. 566,849
Shareholder service agent's fees and expenses................ 66,975
Accounting services.......................................... 34,595
Directors' fees and expenses................................. 17,104
Audit fees................................................... 11,100
Custodian fees............................................... 4,188
Legal fees................................................... 6,418
Reports to shareholders...................................... 30,720
Registration and filing fees................................. 12,255
Miscellaneous................................................ 843
-----------
Total expenses.............................................. 751,047
-----------
NET INVESTMENT INCOME........................................ 8,774,097
-----------
REALIZED AND UNREALIZED GAIN ON SECURITIES
Net realized gain on securities.............................. 632,550
Net unrealized appreciation of securities during the period.. 9,032,956
-----------
NET REALIZED AND UNREALIZED GAIN ON SECURITIES............... 9,665,506
-----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............. $18,439,603
-----------
</TABLE>
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months Ended Year Ended
December 31, 1995 June 30, 1995
----------------- -------------
<S> <C> <C>
NET ASSETS, beginning of period.............. $231,939,077 $216,629,352
------------ ------------
OPERATIONS
Net investment income....................... 8,774,097 17,310,435
Net realized gain on securities............. 632,550 935,680
Net unrealized appreciation of securities
during the period.......................... 9,032,956 14,575,680
------------ ------------
Increase in net assets resulting from
operations.................................. 18,439,603 32,821,795
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM NET
INVESTMENT INCOME............................ (8,749,672) (17,512,070)
------------ ------------
INCREASE IN NET ASSETS....................... 9,689,931 15,309,725
------------ ------------
NET ASSETS, end of period (including
undistributed net investment income of
$304,307 and $279,882, respectively)........ $241,629,008 $231,939,077
------------ ------------
</TABLE>
See Notes to Financial Statements
7
<PAGE>
FINANCIAL HIGHLIGHTS
Selected data for a share of common stock outstanding throughout each of the
periods indicated. (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Ended June 30
December 31, --------------------------------------
1995 1995 1994 1993 1992 1991
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE
Net asset value,
beginning of period...... $20.41 $19.07 $21.33 $19.85 $18.68 $18.72
------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT
OPERATIONS
Investment income....... .84 1.73 1.88 1.925 2.075 2.095
Operating expenses...... (.07) (.13) (.15) (.15) (.14) (.135)
Convertible note
expenses(/1/)........... -- (.08) (.17) (.20) (.20) (.20)
------ ------ ------ ------ ------ ------
Net investment income.... .77 1.52 1.56 1.575 1.735 1.76
Net realized or
unrealized gain (loss)
on securities........... .86 1.36 (2.28) 1.55 1.115 (.03)
------ ------ ------ ------ ------ ------
Total from investment
operations............... 1.63 2.88 (.72) 3.125 2.85 1.73
------ ------ ------ ------ ------ ------
DISTRIBUTIONS FROM NET
INVESTMENT INCOME....... (.77) (1.54) (1.54) (1.645) (1.68) (1.77)
------ ------ ------ ------ ------ ------
Net asset value, end of
period................... $21.27 $20.41 $19.07 $21.33 $19.85 $18.68
------ ------ ------ ------ ------ ------
Market price, end of
period................... $19.63 $19.13 $18.13 $20.75 $19.75 $18.38
------ ------ ------ ------ ------ ------
TOTAL RETURN, at net
asset value(/2/)......... 8.34% 16.54% (3.37%) 16.35% 15.79% 10.49%
TOTAL RETURN, at net
market price(/2/)........ 6.68% 14.89% (5.59%) 13.76% 17.12% 23.30%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(millions)............... $241.6 $231.9 $216.6 $235.6 $218.5 $204.4
Average net assets
(millions)............... $235.3 $218.7 $236.3 $227.3 $213.4 $204.3
Ratios to average net
assets
Operating expenses...... .64% .68% .68% .71% .71% .72%
Convertible note
expenses(/1/)........... -- .39% .82% .98% 1.05% 1.09%
Net investment income... 7.46% 7.92% 7.29% 7.65% 8.90% 9.42%
Portfolio turnover rate.. 5% 8% 2% 19% 39% 18%
Assuming full dilution of
debt(/1/)
Net asset value, end of
period.................. -- -- $19.07 $21.09 $19.78 $18.74
Number of shares
outstanding, end of
period (000)........... -- -- 12,411 12,411 12,372 12,304
</TABLE>
(1) On January 3, 1995, the Fund paid off its outstanding convertible
extendible note.
(2) Total return for a period of less than one year is not annualized.
See Notes to Financial Statements
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
- -------------------------------------------------------------------------------
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
Van Kampen American Capital Bond Fund, Inc. (the "Fund", formerly American
Capital Bond Fund, Inc.) is registered under the Investment Company Act of
1940, as amended, as a diversified closed-end management investment company.
The Fund seeks income with the preservation of capital by investing primarily
in debt investments.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The prep-
aration of financial statements in conformity with generally accepted account-
ing principles requires management to make estimates and assumptions that
affect the amounts reported. Actual amounts may differ from the estimates.
A. INVESTMENT VALUATIONS-Securities listed or traded on a national securities
exchange are valued at the last sale price. Unlisted securities and listed se-
curities for which the last sale price is not available are valued at the mean
between the last reported bid and asked price.
Short-term investments with a maturity of 60 days or less when purchased are
valued at amortized cost, which approximates market value. Short-term invest-
ments with a maturity of more than 60 days when purchased are valued based on
market quotations until the remaining days to maturity becomes less than 61
days. From such time, until maturity, the investments are valued at amortized
cost.
B. FEDERAL INCOME TAXES-No provision for federal income taxes is required be-
cause the Fund has elected to be taxed as a "regulated investment company" un-
der the Internal Revenue Code and intends to maintain this qualification by
annually distributing all of its taxable net investment income and taxable net
realized capital gains to its shareholders. It is anticipated that no distri-
butions of capital gains will be made until tax basis capital loss
carryforwards expire or are offset by future net realized capital gains.
For federal income tax purposes, the net realized capital loss carryforward
of approximately $32.4 million at June 30, 1995, may be utilized to offset
current or future capital gains of which $28 million expires in 1998 and the
remainder expires in 1999 and 2000.
C. INVESTMENT TRANSACTIONS AND RELATED INVESTMENT INCOME-Investment
transactions are accounted for on the trade date. Realized gains and losses on
investments are determined on the basis of identified cost. Dividend income is
recorded on the ex-dividend date. Interest income is accrued weekly.
9
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(Unaudited)
- -------------------------------------------------------------------------------
D. DIVIDENDS AND DISTRIBUTIONS-Dividends and distributions to shareholders are
recorded on the record date. The Fund distributes tax basis earnings in accor-
dance with the minimum distribution requirements of the Internal Revenue Code,
which may result in dividends or distributions in excess of financial state-
ment earnings.
E. DEBT DISCOUNT OR PREMIUM-The Fund accounts for original issue discounts and
premiums on the same basis as is used for federal income tax reporting. Ac-
cordingly, original issue discounts on long-term debt securities purchased are
amortized over the life of the security. Premiums on debt securities are not
amortized. Market discounts are recognized at the time of sale as realized
gains for book purposes and ordinary income for tax purposes.
NOTE 2--MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Van Kampen American Capital Asset Management, Inc. (the "Adviser") serves as
investment manager of the Fund. Management fees are paid monthly, based on the
average weekly net assets of the Fund at an annual rate of .50% of the first
$150 million, .45% of the next $100 million, .40% of the next $100 million,
and .35% of the amount in excess of $350 million.
Accounting services include the salaries and overhead expenses of the Fund's
Treasurer and the personnel operating under his direction. Charges are allo-
cated among investment companies advised by the Adviser. For the period these
charges included $3,513 as the Fund's share of the employee costs attributable
to the Fund's accounting officers. A portion of the accounting services ex-
pense was paid to the Adviser in reimbursement of personnel, facilities and
equipment costs attributable to the provision of accounting services to the
Fund. The accounting services provided by the Adviser are at cost.
Certain officers and directors of the Fund are officers and directors of the
Adviser.
NOTE 3--INVESTMENT ACTIVITY
During the period, the cost of purchases and proceeds from sales of invest-
ments, excluding short-term investments, were $11,100,367 and $10,472,883, re-
spectively.
The cost of investments owned at the end of the period was the same for fed-
eral income tax and financial reporting purposes. Gross unrealized apprecia-
tion of investments aggregated $26,979,581 and gross depreciation of
investments aggregated $309,745.
NOTE 4--DIRECTOR COMPENSATION
Fund directors who are not affiliated with the Adviser are compensated by the
Fund at the annual rate of $1,929 plus $129 per meeting attended. During the
period, such fees aggregated $15,760.
10
<PAGE>
FUNDS DISTRIBUTED BY VAN KAMPEN AMERICAN CAPITAL
GLOBAL AND INTERNATIONAL
Global Equity Fund
Global Government Securities Fund
Global Managed Assets Fund
Short-Term Global Income Fund
Strategic Income Fund
EQUITY
Growth
Emerging Growth Fund
Enterprise Fund
Pace Fund
Growth & Income
Balanced Fund
Comstock Fund
Equity Income Fund
Growth and Income Fund
Harbor Fund
Real Estate Securities Fund
Utility Fund
FIXED INCOME
Corporate Bond Fund
Government Securities Fund
High Income Corporate Bond Fund
High Yield Fund
Limited Maturity Government Fund
Prime Rate Income Trust
Reserve Fund
U.S. Government Fund
U.S. Government Trust for Income
TAX-FREE
California Insured Tax Free Fund
Florida Insured Tax Free Income Fund
High Yield Municipal Fund
Insured Tax Free Income Fund
Limited Term Municipal Income Fund
Municipal Income Fund
New Jersey Tax Free Income Fund
New York Tax Free Income Fund
Pennsylvania Tax Free Income Fund
Tax Free High Income Fund
Tax Free Money Fund
Texas Tax Free Income Fund
THE GOVETT FUNDS
Emerging Markets Fund
Global Income Fund
International Equity Fund
Latin America Fund
Pacific Strategy Fund
Smaller Companies Fund
Ask your investment adviser for a prospectus containing more complete
information, including sales charges and expenses. Please read it carefully
before you invest or send money. Or call us direct at 1-800-421-5666 weekdays
from 7:00 a.m. to 7:00 p.m. Central time.
11
<PAGE>
VAN KAMPEN AMERICAN CAPITAL BOND FUND, INC.
BOARD OF DIRECTORS
DONALD M. CARLTON
A. BENTON COCANOUGHER
STEPHEN R. GROSS
DR. NORMAN HACKERMAN
ROBERT D.H. HARVEY
ALAN G. MERTEN
STEVEN MULLER
F. ROBERT PAULSEN
R. RICHARDSON PETTIT
DON G. POWELL
ALAN B. SHEPARD, JR.
MILLER UPTON
BENJAMIN N. WOODSON
OFFICERS
DON G. POWELL
Chairman of the Board and President
CURTIS W. MORELL
Vice President and Treasurer
DENNIS J. MCDONNELL
ROBERT C. PECK, JR.
DAVID R. TROTH
PAUL R. WOLKENBERG
Vice Presidents
TANYA M. LODEN
Vice President and Controller
NORI L. GABERT
Vice President and Secretary
J. DAVID WISE
Vice President and Assistant Secretary
PERRY F. FARRELL
M. ROBERT SULLIVAN
Assistant Treasurers
INVESTMENT ADVISER
VAN KAMPEN AMERICAN CAPITAL ASSET MANAGEMENT, INC.
2800 Post Oak Blvd. Houston, Texas 77056
CUSTODIAN
STATE STREET BANK AND TRUST CO.
225 Franklin Street Boston, Massachusetts 02101
SHAREHOLDER SERVICE AGENT
BOSTON FINANCIAL DATA SERVICES, INC.
P.O. Box 366
Boston, Massachusetts 02101
(C) Van Kampen American Capital Distributors, Inc. 1996 All rights reserved.
(SM) denotes a service mark of Van Kampen American Capital Distributors, Inc.
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NEW YORK STOCK EXCHANGE SYMBOL
COMMON STOCK-ACB
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INQUIRIES ABOUT AN INVESTOR'S
ACCOUNT SHOULD BE REFERRED
TO THE FUND'S TRANSFER AGENT
BOSTON FINANCIAL DATA SERVICES, INC.
P.O. BOX 366
BOSTON, MASSACHUSETTS 02101
TELEPHONE: (800) 821-1238
ALASKA, CALIFORNIA AND HAWAII
CALL COLLECT: (617) 328-5000
EXTENSION: 2223
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