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VAN KAMPEN AMERICAN CAPITAL
PACE FUND
SUPPLEMENT DATED NOVEMBER 2, 1995, TO THE
STATEMENT OF ADDITIONAL INFORMATION DATED SEPTEMBER 1, 1995.
The section of the Statement of Additional Information captioned "Fund
Performance" is hereby supplemented as follows:
The Adviser seeks to purchase securities of companies which, in the
judgement of the Adviser, have an above average potential for capital
growth, which often includes those companies with innovative management and
excellent financial health. The Fund also attempts to remain fully invested
and diversified across many industries to achieve consistent long-term
performance.
Since the commencement of investment operations on July 22, 1969, the world
has experienced a number of significant political and economic events. For
example, in 1971, there were wage and price freezes to attempt to control
inflation. In 1973 the dollar was devalued and the OPEC oil embargo was in
effect. 1976 saw sweeping tax law changes, and in 1979 the CPI rose over
13%, it's largest rise in 33 years. In 1982, the country was in a
recession, in 1985 the U.S. deficit became the largest in the world and the
U.S. was now a debtor nation. 1987 saw the stock market crash. The Persian
Gulf War began in 1991, and the Dow Jones Industrial Average hit a record
high of 4000 in 1995.
From time to time marketing materials may provide a portfolio manager
update on the Fund or discuss general economic conditions. The top 10
holdings of the Fund may also be listed in marketing pieces.
