<PAGE> PAGE 1
000 B000000 12/31/97
000 C000000 0000005099
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002 A000000 ONE PARKVIEW PLAZA
002 B000000 OAKBROOK TERRACE
002 C000000 IL
002 D010000 60181
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008 B000001 A
008 C000001 801-8286
008 D010001 OAKBROOK TERRACE
008 D020001 IL
008 D030001 60181
011 A000001 VAN KAMPEN AMERICAN CAPITAL DISTRIBUTORS, INC
011 B000001 8-19903
011 C010001 OAKBROOK TERRACE
011 C020001 IL
011 C030001 60181
012 A000001 BOSTON EQUISERVE LP
012 B000001 84-209809
012 C010001 BOSTON
012 C020001 MA
012 C030001 02110
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013 B010001 HOUSTON
013 B020001 TX
<PAGE> PAGE 2
013 B030001 77010
014 A000001 MORGAN STANLEY & CO., INCORPORATED
014 B000001 8-733537
014 A000002 DEAN WITTER REYNOLDS, INC.
014 B000002 8-728181
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
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019 C000000 VANKAMPENA
020 A000001 MERRILL LYNCH
020 B000001 13-5674085
020 C000001 11
020 A000002 BERNSTEIN SANFORD C & CO INC
020 B000002 13-2625874
020 C000002 7
020 A000003 DONALDSON LUFKIN & JENNRETTE
020 B000003 13-2741729
020 C000003 7
020 A000004 FORUM CAPITAL
020 B000004 06-1351111
020 C000004 6
020 A000005 GOLDMAN SACHS
020 B000005 13-5108880
020 C000005 6
020 A000006 PARALLAX GROUP INC
020 B000006 13-3680184
020 C000006 6
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020 C000007 6
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020 B000008 13-1912900
020 C000008 5
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020 C000009 4
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020 C000010 4
021 000000 98
022 A000001 GENERAL ELECTRIC CAP CORP
022 B000001 06-1076552
022 C000001 642330
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<PAGE> PAGE 3
022 C000002 195194
022 D000002 0
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022 B000003 13-2518466
022 C000003 97424
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022 B000004 95-4035346
022 C000004 61707
022 D000004 1960
022 A000005 DONALDSON LUFKIN JENNRETTE
022 B000005 13-2741729
022 C000005 53941
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022 B000007 04-1867445
022 C000007 47845
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022 B000008 22-2347336
022 C000008 31433
022 D000008 1494
022 A000009 MERRILL LYNCH
022 B000009 13-5674085
022 C000009 17058
022 D000009 11949
022 A000010 GOLDMAN SACHS
022 B000010 13-5108880
022 C000010 6919
022 D000010 8845
023 C000000 1303933
023 D000000 99610
024 000000 Y
025 A000001 MERRILL LYNCH
025 B000001 13-5674085
025 C000001 E
025 D000001 793
025 A000002 SWISS BANK CORP
025 B000002 31-2639550
025 C000002 E
025 D000002 1770
025 D000003 0
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<PAGE> PAGE 4
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 8
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<PAGE> PAGE 9
077 A000000 Y
077 B000000 Y
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077 D000000 N
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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 N
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077 Q030000 N
078 000000 N
080 A000000 ICI MUTUAL INSURANCE COMPANY
080 B000000 N/A/
080 C000000 65000
081 A000000 Y
081 B000000 117
082 A000000 Y
082 B000000 100
083 A000000 N
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084 A000000 N
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086 C020000 0
086 D010000 0
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087 A020000 920956109
087 A030000 ACS
088 A000000 N
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<PAGE> PAGE 10
088 D000000 N
SIGNATURE MARY WIERSEMA
TITLE FUND COORDINATOR
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 11
<NAME> CONVERTIBLE SECURITIES FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<INVESTMENTS-AT-COST> 77,480,668
<INVESTMENTS-AT-VALUE> 82,902,006
<RECEIVABLES> 588,427
<ASSETS-OTHER> 56,951
<OTHER-ITEMS-ASSETS> 4,133
<TOTAL-ASSETS> 83,551,517
<PAYABLE-FOR-SECURITIES> 2,763,111
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,124,871
<TOTAL-LIABILITIES> 4,887,982
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 71,283,425
<SHARES-COMMON-STOCK> 3,241,824
<SHARES-COMMON-PRIOR> 3,241,824
<ACCUMULATED-NII-CURRENT> 205,333
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,753,439
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 5,421,338
<NET-ASSETS> 78,663,535
<DIVIDEND-INCOME> 1,218,334
<INTEREST-INCOME> 2,688,327
<OTHER-INCOME> 0
<EXPENSES-NET> (646,654)
<NET-INVESTMENT-INCOME> 3,260,007
<REALIZED-GAINS-CURRENT> 11,981,751
<APPREC-INCREASE-CURRENT> (2,210,905)
<NET-CHANGE-FROM-OPS> 13,030,853
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (3,822,436)
<DISTRIBUTIONS-OF-GAINS> (9,810,855)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (602,438)
<ACCUMULATED-NII-PRIOR> 75,823
<ACCUMULATED-GAINS-PRIOR> 274,482
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 422,759
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 646,654
<AVERAGE-NET-ASSETS> 84,550,673
<PER-SHARE-NAV-BEGIN> 24.451
<PER-SHARE-NII> 1.006
<PER-SHARE-GAIN-APPREC> 3.014
<PER-SHARE-DIVIDEND> (1.179)
<PER-SHARE-DISTRIBUTIONS> (3.027)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 24.265
<EXPENSE-RATIO> 0.76
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Trustees
Van Kampen American Capital Convertible Securities Fund
In planning and performing our audit of the financial statements of Van Kampen
American Capital Convertible Securities Fund for the year ended December 31,
1997, we considered its internal control, including control activities 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, and not to provide assurance on the
internal control.
The management of Van Kampen American Capital Convertible Securities Fund is
responsible for establishing and maintaining internal control. In fulfilling
this responsibility, estimates and judgments by management are required to
assess the expected benefits and related cost of controls. Generally, controls
that are relevant to an audit pertain to the entity's objective of preparing
financial statements for external purposes that are fairly presented in
conformity with generally accepted accounting principles. Those controls
include the safeguarding of assets against unauthorized acquisition, use or
disposition.
Because of inherent limitations in internal control, errors or fraud may occur
and not be detected. Also, projection of any evaluation of internal control 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 internal control would not necessarily disclose all
matters in internal control 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 one or
more of specific internal control components does not reduce to a relatively
low level the risk that errors or fraud 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
internal control and its operation, including controls for safeguarding
securities, that we consider to be material weaknesses as defined above at
December 31, 1997.
This report is intended solely for the information and use of the Board of
Trustees and management of Van Kampen American Capital Convertible Securities
Fund and the Securities and Exchange Commission.
/S/ ERNST & YOUNG LLP
---------------------
ERNST & YOUNG LLP
Houston, Texas
February 4, 1998
NSAR ITEM 77C
Van Kampen American Capital Convertible Securities Fund
(a) An Annual Meeting of Shareholders was held on December 18, 1997.
(b) The election of Trustees of Van Kampen American Capital Convertible
Securities Fund (the "Fund") included:
David C. Arch, Rod Dammeyer, Howard J Kerr, Dennis J. McDonnell,
Steven Muller, Ph.D., Theodore A. Myers, Hugo F. Sonnenschein and
Wayne W. Whalen
(c) The following were voted on at the meeting:
4) For each AC Fund, to Ratify the Selection of Ernst & Young LLP
Independent Public Accountants for its Current Fiscal Year.
For 1,994,424 Against 30,334
NSAR ITEM 77O
VKAC Convertible Securities Fund
10f-3 Transactions
<TABLE>
<CAPTION>
UNDERWRITING # UNDERWRITING PURCHASED FROM AMOUNT OF SHARES % OF UNDERWRITING DATE OF PURCHASE
PURCHASED
<S> <C> <C> <C> <C> <C>
1 Microsoft Corporation Goldman, Sachs 6,000 0.055% 12/17/96
2 National Australia Bank Merrill Lynch 750,000 1.000% 03/12/97
3 SBC Communications Inc. Salomon Brothers 85,000 0.800% 03/20/97
4 Boston Chicken, Inc. Merrill Lynch 450,000 0.180% 04/22/97
5 Houston Industries Inc. Goldman Sachs 11,250 0.056% 07/09/97
6 MedPartners, Inc. Smith Barney 15,000 0.079% 09/15/97
7 Snyder Communications Merrill Lynch 57,000 1.267% 09/18/97
8 China Telecom Limited Goldman Sachs 22,000 0.017% 10/16/97
9 EVI, Inc. Donaldson, Lufkin &
Jenrette 15,000 0.214% 10/29/97
10 Omnicare First Boston 850,000 0.283% 12/04/97
11 Newell Financial Trust Goldman Sachs 10,000 0.116% 12/08/97
</TABLE>
<PAGE>
Other Firms participating in Underwriting:
Underwriting for #1
- -------------------
Deutsche Morgan Grenfell
Goldman, Sachs & Co.
Salomon Brothers Inc.
Smith Barney Inc.
Alex, Brown & Sons Incorporated
Morgan Stanley & Co. Incorporated
Allen & Company Incorporated
BT Securities Corporation
Bear, Stearns & Co., Inc.
Cowen & Company
Dain Bosworth Incorporated
Dean Witter Reynolds Inc.
Dillon, Read & Co., Inc.
Donaldson, Lufkin & Jenrette Securities Corporation
Furman Selz LLC
Edward D. Jones & Co., L.P.
Montgomery Securities
PaineWebber Incorporated
Piper Jaffray Inc.
Prudential Securities Incorporated
Ragen MacKenzie Incorporated
Robertson, Stephens & Company LLC
SoundView Financial Group, Inc.
Underwriting for #2
- -------------------
Merrill Lynch, Inc.
Morgan Stanley & Co, Incorporated
Keefe, Bruyette & Woods, Inc.
J.B. Were & Son Inc.
First of Michigan Corporation
Roney & Co., LLC
Utendahl Capital Partners, L.P.
<PAGE>
Underwriting for #3
- -------------------
Salomon Brothers Inc.
Credit Suisse First Boston Corp.
Bear, Stearns & Co., Inc.
J.P. Morgan Securities Inc.
Morgan Stanley & Co. Inc.
Underwriting for #4
- -------------------
Merrill Lynch, Inc.
Alex, Brown & Sons, Incorporated
Morgan Stanley & Co., Incorporated
Underwriting for #5
- -------------------
Goldman, Sachs & Co.
Credit Suisse First Boston Corporation
Merrill Lynch, Pierce, Fenner & Smith Incorporated
George K. Baum & Company
CIBC Wood Grundy Securities Corp.
Chase Securities Inc.
EVEREN Securities Inc.
Lehman Brothers Inc.
J.P. Morgan Securities Inc.
Morgan Stanley & Co. Inc.
Smith Barney Inc.
Stephens Inc.
Stifel, Nicolaus & Company, Inc.
UBS Securities, LLC
SBC Warburg Inc.
Underwriting for #6
- -------------------
Smith Barney Inc.
Credit Suisse First Boston Corp.
Merrill Lynch, Inc.
Montgomery Securities
Morgan Stanley & Co., Inc.
Piper Jaffray Inc.
ABN AMRO Chicago, Corp.
Bear, Stearns, & Co., Inc.
Sanford C. Bernstein & Co., Inc.
Cowen & Company
<PAGE>
Underwriting for #6 (con't)
- ---------------------------
A.G. Edwards & Sons, Inc.
EVEREN Securities Inc.
Lehman Brothers Inc.
Needham & Company Inc.
The Robinson-Humphrey Company, Inc.
Rothschild Inc.
Salomon Brothers Inc.
Sterne, Agee & Leach, Inc.
UBS Securities, LLC
Vector Securities International Inc.
Wasserstein Perella Securities Inc.
Wessels, Arnold & Henderson, LLC
Underwriting for #7
- -------------------
Merrill Lynch & Co.
Goldman, Sachs & Co.
Morgan Stanley Dean Witter
Montgomery Securities
Bear, Stearns & Co. Inc.
Underwriting for #8
- -------------------
Goldman, Sachs & Co.
China International Capital Corporation
Morgan Stanley & Co. Incorporation
Bear, Stearns & Co., Inc.
Donaldson, Lufkin & Jenrette Securities Corporation
Merrill Lynch, Inc.
Credit Suisse First Boston
Prudential Securities Inc.
RBC Dominion Securities Corp.
Salomon Brothers Inc.
Smith Barney, Inc.
<PAGE>
Underwriting for #9
- -------------------
Sonaldson, Lufkin & Jenrette
Morgan Stanley Dean Witter
Credit Suisse First Boston
Lehman Brothers
Prudential Securities Inc.
Schroder & Co., Inc.
Underwriting for #10
- --------------------
Morgan Stanley Dean Witter
Credit Suisse First Boston
Merrill Lynch & Co.
Nationsbanc Montgomery Securities, Inc.
Salomon Smith Barney
William Blair & Company
Underwriting for #11
- --------------------
Goldman, Sachs & Co.
Morgan Stanley & Co., Inc.
Robert W. Baird & Co., Inc,
Bear, Stearns & Co., Inc.
Merrill Lynch, Inc.
