<PAGE> PAGE 1
000 B000000 12/31/95
000 C000000 0000005099
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 U
001 A000000 VKAC CONVERTIBLE SECURTITIES,INC.
001 B000000 811-02282
001 C000000 7139930500
002 A000000 2800 POST OAK BLVD.
002 B000000 HOUSTON
002 C000000 TX
002 D010000 77056
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 VAN KAMPEN AMERICAN CAPITAL ASSET MGT., INC.
008 B000001 A
008 C000001 801-8286
008 D010001 HOUSTON
008 D020001 TX
008 D030001 77056
011 A000001 VAN KAMPEN AMERICAN CAPITAL DISTRIBUTORS, INC
011 B000001 8-19903
011 C010001 HOUSTON
011 C020001 TX
011 C030001 77056
012 A000001 BOSTON FINANCIAL DATA SERVICES, INC.
012 B000001 84-209809
012 C010001 BOSTON
012 C020001 MA
012 C030001 02110
013 A000001 ERNST & YOUNG LLP
013 B010001 HOUSTON
013 B020001 TX
<PAGE> PAGE 2
013 B030001 77010
015 A000001 STATE STREET BANK & TRUST CO.
015 B000001 C
015 C010001 BOSTON
015 C020001 MA
015 C030001 02110
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 34
019 C000000 ACFHOUSTON
020 A000001 PRUDENTIAL SECURITIES, INC.
020 B000001 22-2347336
020 C000001 10
020 A000002 FIRST BOSTON CORP.
020 B000002 13-5659485
020 C000002 9
020 A000003 MORGAN STANLEY & CO., INC.
020 B000003 13-2655998
020 C000003 7
020 A000004 GOLDMAN SACHS & CO.
020 B000004 13-5108880
020 C000004 5
020 A000005 MERRILL LYNCH & CO., INC.
020 B000005 13-5674085
020 C000005 5
020 A000006 PAINEWEBBER, INC.
020 B000006 13-2692766
020 C000006 4
020 A000007 AUTRANET, INC.
020 B000007 13-2961507
020 C000007 4
020 A000008 SALOMON BROTHERS, INC.
020 B000008 13-3082694
020 C000008 3
020 A000009 LAWRENCE (C.J.), INC.
020 B000009 13-2730828
020 C000009 3
020 A000010 BERNSTEIN (SANFORD C.) & CO., INC.
020 B000010 13-2625874
020 C000010 2
021 000000 89
022 A000001 ASSOCIATES CORP OF NORTH AMERICA
022 B000001 ---
022 C000001 550600
022 D000001 0
022 A000002 GENERAL ELECTRIC CAPITAL COPR.
022 B000002 06-1076552
022 C000002 268069
022 D000002 0
022 A000003 SALOMON BROTHERS, INC.
<PAGE> PAGE 3
022 B000003 13-3082694
022 C000003 153646
022 D000003 1418
022 A000004 LEHMAN BROTHERS, INC.
022 B000004 13-2518466
022 C000004 148588
022 D000004 4913
022 A000005 STATE STREET BANK & TRUST CO.
022 B000005 04-1867445
022 C000005 125325
022 D000005 0
022 A000006 SBC CAPITAL MARKETS, INC.
022 B000006 -------
022 C000006 121310
022 D000006 0
022 A000007 PRUDENTIAL FUNDING SECURITIES CORP.
022 B000007 22-2347336
022 C000007 34273
022 D000007 0
022 A000008 MERRILL LYNCH & CO., INC.
022 B000008 13-5674085
022 C000008 18582
022 D000008 14243
022 A000009 GOLDMAN SACHS & CO.
022 B000009 13-5108880
022 C000009 9878
022 D000009 2912
022 A000010 MORGAN STANLEY & CO., INC.
022 B000010 13-2655998
022 C000010 3283
022 D000010 3800
023 C000000 1468254
023 D000000 45969
024 000000 Y
025 A000001 ASSOCIATES CORP OF NORTH AMERICA
025 B000001 ---
025 C000001 D
025 D000001 2998
025 A000002 GENERAL ELECTRIC CAPITAL CORP.
025 B000002 06-1076552
025 C000002 D
025 D000002 2403
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 Y
026 B000000 Y
026 C000000 Y
<PAGE> PAGE 4
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 N
028 A010000 0
028 A020000 0
028 A030000 0
028 A040000 0
028 B010000 0
028 B020000 0
028 B030000 0
028 B040000 0
028 C010000 0
028 C020000 0
028 C030000 0
028 C040000 0
028 D010000 0
028 D020000 0
028 D030000 0
028 D040000 0
028 E010000 0
028 E020000 0
028 E030000 0
028 E040000 0
028 F010000 0
028 F020000 0
028 F030000 0
028 F040000 0
028 G010000 0
028 G020000 0
028 G030000 0
028 G040000 0
028 H000000 0
030 A000000 0
030 B000000 0.00
030 C000000 0.00
031 A000000 0
031 B000000 0
032 000000 0
033 000000 0
035 000000 0
036 B000000 0
038 000000 0
042 A000000 0
042 B000000 0
042 C000000 0
042 D000000 0
042 E000000 0
<PAGE> PAGE 5
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 0
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.000
048 A010000 150000
048 A020000 0.500
048 B010000 100000
048 B020000 0.450
048 C010000 100000
048 C020000 0.400
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 350000
048 K020000 0.350
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 N
054 A000000 Y
054 B000000 N
054 C000000 N
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 Y
054 H000000 Y
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 N
054 M000000 Y
054 N000000 N
054 O000000 Y
<PAGE> PAGE 6
055 A000000 N
055 B000000 N
056 000000 N
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 500
062 A000000 N
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 0.0
066 A000000 Y
066 B000000 N
066 C000000 N
066 D000000 N
066 E000000 Y
066 F000000 N
066 G000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 Y
070 B010000 Y
070 B020000 N
070 C010000 Y
070 C020000 N
070 D010000 Y
070 D020000 N
070 E010000 Y
070 E020000 N
070 F010000 Y
<PAGE> PAGE 7
070 F020000 N
070 G010000 Y
070 G020000 N
070 H010000 Y
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 N
070 K010000 N
070 K020000 N
070 L010000 Y
070 L020000 Y
070 M010000 N
070 M020000 N
070 N010000 Y
070 N020000 N
070 O010000 Y
070 O020000 N
070 P010000 Y
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 Y
070 R020000 N
071 A000000 88781
071 B000000 87435
071 C000000 68941
071 D000000 127
072 A000000 12
072 B000000 1188
072 C000000 3110
072 D000000 0
072 E000000 0
072 F000000 382
072 G000000 0
072 H000000 0
072 I000000 52
072 J000000 21
072 K000000 0
072 L000000 22
072 M000000 25
072 N000000 15
072 O000000 5
072 P000000 0
072 Q000000 56
072 R000000 17
072 S000000 13
072 T000000 0
072 U000000 0
072 V000000 0
<PAGE> PAGE 8
072 W000000 6
072 X000000 614
072 Y000000 0
072 Z000000 3684
072AA000000 5808
072BB000000 2234
072CC010000 7902
072CC020000 0
072DD010000 3728
072DD020000 0
072EE000000 2374
073 A010000 1.1500
073 A020000 0.0000
073 B000000 0.7325
073 C000000 0.0000
074 A000000 3
074 B000000 0
074 C000000 5401
074 D000000 44364
074 E000000 13824
074 F000000 15895
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 163
074 K000000 0
074 L000000 658
074 M000000 31
074 N000000 80339
074 O000000 1107
074 P000000 33
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 65
074 S000000 0
074 T000000 79134
074 U010000 3242
074 U020000 0
074 V010000 24.41
074 V020000 0.00
074 W000000 0.0000
074 X000000 3047
074 Y000000 0
075 A000000 0
075 B000000 76505
076 000000 21.38
077 A000000 Y
077 B000000 Y
077 C000000 Y
<PAGE> PAGE 9
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 Y
077 P000000 N
077 Q010000 Y
077 Q020000 N
077 Q030000 N
078 000000 N
080 A000000 ICI MUTUAL INSURANCE COMPANY
080 B000000 N/A
080 C000000 65000
081 A000000 Y
081 B000000 100
082 A000000 Y
082 B000000 100
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
SIGNATURE TANYA LODEN
TITLE CONTROLLER
[DESCRIPTION] Report of Independent Auditors
<PAGE> 1
[ERNST & YOUNG LLP LETTERHEAD]
REPORT OF INDEPENDENT AUDITORS
ON INTERNAL CONTROL STRUCTURE
Board of Directors
of Van Kampen American Capital Convertible Securities, Inc.
In planning and performing our audit of the financial statements of Van Kampen
American Capital Convertible Securities, Inc. for the year ended December 31,
1995, we considered its internal control structure, including procedures for
safeguarding securities, in order to determine our auditing procedures for the
purpose of expressing our opinion on the financial statements and to comply
with the requirements of Form N-SAR, not to provide assurance on the internal
control structure.
The management of Van Kampen American Capital Convertible Securities, Inc. is
responsible for establishing and maintaining an internal control structure.
In fulfilling this responsibility, estimates and judgments by management are
required to assess the expected benefits and related costs of internal control
structure policies and procedures. Two of the objectives of an internal
control structure are to provide management with reasonable, but not absolute,
assurance that assets are safeguarded against loss from unauthorized use or
disposition and that transactions are executed in accordance with management's
authorization and recorded properly to permit preparation of financial
statements in conformity with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and not be detected. Also, projection of any
evaluation of the structure to future periods is subject to the risk that it
may become inadequate because of changes in conditions or that the
effectiveness of the design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control structure elements does not reduce
to a relatively low level the risk that errors or irregularities in amounts
that would be material in relation to the financial statements being audited
may occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. However, we noted no matters
involving the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
December 31 1995.
This report is intended solely for the information and use of management and
the Securities and Exchange Commission.
/s/ ERNST & YOUNG LLP
-------------------------
ERNST & YOUNG LLP
February 9, 1996
N-SAR ITEM 77C
a) The Annual Meeting of Shareholders of American Capital Convertible
Securities, Inc. was held on December 14, 1995.
b) The election of Directors included (and are now in office):
Dr. Donald M. Carlton
Dr. F. Robert Paulsen
Dr. A. Benton Cocanougher
Dr. R. Richard Pettit
Dr. Stephen Randolph Gross
Don G. Powell
Robert D.H. Harvey
Allen B. Shepard, Jr.
Dr. Alan G. Merten
Miller Upton
Dr. Norman Hackerman
Benjamin N. Woodson
Dr. Steven Muller
c) The following were voted on at the meeting:
1) Approval of an amendment to the Fund s Articles of Incorporation to
change the name of the Fund.
For 2,076,077.711 Against 83,550.166
Abstain 85,605.402
2) Ratification of the selection of Ernst & Young LLP as independent
accountants for the Fund's current fiscal year:
For 2,184,196.806 Against 17,011.210
Abstain 44,025.263
d) Inapplicable
Item 77C is incorporated herein by reference to the proxy statement
of the Registrant filed with the SEC on October 23, 1995.
Exhibit 77 0
AMERICAN CAPITAL Convertible Securities, Inc.
Underwritings Pursuant to Rule 10f-3
1. Name of Issuer: De Rigo S.p.A. ADS
Securities Acquired from: Merrill Lynch
Syndicate Members: See attached list
Principal Amount in Offering: 7,739,130
Principal Amount Purchased: 400
Price Per Share: $16.00
Purchase Date: October 19, 1995
AMERICAN CAPITAL CONVERTIBLE SECURITIES, INC.
ARTICLES OF AMENDMENT
American Capital Convertible Securities, Inc., a Maryland corporation,
having its principal office in Baltimore City, Maryland (which is
hereinafter called the "Corporation"), hereby certifies to the State
Department of Assessments and Taxation of Maryland that:
FIRST: The Charter of the Corporation is hereby amended as follows:
Article SECOND of the Charter is amended in its entirety to read as
follows:
The name of the corporation (which is hereinafter called the
"Corporation") is:
"Van Kampen American Capital Convertible Securities, Inc."
Van Kampen American Capital, Inc. ( Van Kampen American Capital ) has
consented to the use by the Corporation to the identifying words Van
Kampen or Van Kampen Merritt or any combination thereof in the name of the
Corporation. Such consent is conditioned upon the Corporation's
employment of Van Kampen American Capital, its successors or a subsidiary
or affiliate thereof as investment adviser to the Corporation. As between
Van Kampen American Capital and the Corporation, Van Kampen American
Capital shall control the use of such name insofar as such name contains
the identifying words Van Kampen or Van Kampen Merritt. Van Kampen
American Capital may from time to time use the identifying words American
Capital, Van Kampen or Van Kampen Merritt in other connections and for
other purposes, including without limitation in the names of other
investment companies, corporations or business that it may manage, advise,
sponsor or own or in which it may have a financial interest. Van Kampen
American Capital may require the Corporation to cease using the identifying
words Van Kampen , Van Kampen Merritt or American Capital in the name of
the Corporation if the Corporation ceases to employ Van Kampen American
Capital, its successors or a subsidiary or affiliate thereof as investment
adviser.
SECOND: The amendment does not increase the authorized stock of the
Corporation.
THIRD: The foregoing amendment to the Charter of the Corporation has been
advised by the Board of Directors and approved by the stockholders of the
Corporation.
FOURTH: These Articles of Amendment become effective as of 5:00 p.m.,
Eastern time, on December 29, 1995.
IN WITNESS WHEREOF, American Capital Convertible Securities, Inc. has
caused these present to be signed in its name and on its behalf by its
Vice President and witnessed by its Assistant Secretary on December 14,
1995.
WITNESS: AMERICAN CAPITAL CONVERTIBLE
SECURITIES, INC.
/s/ Huey P. Falgout, Jr. By /s/ Nori L. Gabert
Assistant Secretary Vice President
THE UNDERSIGNED, Vice President of American Capital Convertible Securities,
Inc., who executed on behalf of the Corporation the foregoing Articles of
Amendment of which this certificate is made a part, hereby acknowledges in
the name and on behalf of said Corporation the foregoing Articles of
Amendment to be the corporate act of said Corporation and hereby certifies
that to the best of his or her knowledge, information, and belief the
matters and facts set forth therein with respect to the authorization and
approval thereof are true in all material respects under the penalties of
perjury.
/s/ Nori L. Gabert
Vice President
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000005099
<NAME> VAN KAMPEN AMERICAN CAPITAL CONVERTIBLE FUND, INC.
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 72,652,582
<INVESTMENTS-AT-VALUE> 79,483,397
<RECEIVABLES> 821,227
<ASSETS-OTHER> 31,272
<OTHER-ITEMS-ASSETS> 3,027
<TOTAL-ASSETS> 80,338,923
<PAYABLE-FOR-SECURITIES> 1,107,389
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 97,752
<TOTAL-LIABILITIES> 1,205,141
<SENIOR-EQUITY> 3,251,324
<PAID-IN-CAPITAL-COMMON> 68,032,101
<SHARES-COMMON-STOCK> 3,241,824
<SHARES-COMMON-PRIOR> 3,241,824
<ACCUMULATED-NII-CURRENT> 102,795
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 916,747
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 6,830,815
<NET-ASSETS> 79,133,782
<DIVIDEND-INCOME> 3,109,806
<INTEREST-INCOME> 1,188,667
<OTHER-INCOME> 0
<EXPENSES-NET> (614,375)
<NET-INVESTMENT-INCOME> 3,684,098
<REALIZED-GAINS-CURRENT> 3,573,846
<APPREC-INCREASE-CURRENT> 7,901,701
<NET-CHANGE-FROM-OPS> 15,159,645
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (3,728,234)
<DISTRIBUTIONS-OF-GAINS> (2,374,380)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 9,057,031
<ACCUMULATED-NII-PRIOR> 67,616
<ACCUMULATED-GAINS-PRIOR> (206,029)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (1,342,756)
<GROSS-ADVISORY-FEES> 382,525
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 614,375
<AVERAGE-NET-ASSETS> 76,504,935
<PER-SHARE-NAV-BEGIN> 21.62
<PER-SHARE-NII> 1.14
<PER-SHARE-GAIN-APPREC> 3.533
<PER-SHARE-DIVIDEND> (1.150)
<PER-SHARE-DISTRIBUTIONS> (.733)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 24.41
<EXPENSE-RATIO> .80
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
