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VAN KAMPEN MERRITT ADJUSTABLE RATE
U.S. GOVERNMENT FUND
SUPPLEMENT DATED MAY 12, 1995 TO PROSPECTUS DATED APRIL 30, 1995
On April 7, 1994, the Trustees of Van Kampen Merritt Trust (the "Trust")
approved an Agreement and Plan of Reorganization between the Van Kampen Merritt
Adjustable Rate U.S. Government Fund, a sub-trust of the Trust (the "Van Kampen
Fund"), and American Capital Federal Mortgage Trust (the "American Capital
Fund"), a fund advised by Van Kampen American Capital Asset Management, Inc.,
providing for the transfer of assets and liabilities of the Van Kampen Fund to
the American Capital Fund in exchange for shares of beneficial interest of the
American Capital Fund at its net asset value per share (the "Reorganization")
subject to the approval of the Trustees of the American Capital Fund which was
received on May 11, 1995.
Van Kampen American Capital Investment Advisory Corp., the investment adviser
to the Van Kampen Fund, and Van Kampen American Capital Asset Management, Inc.,
are wholly owned subsidiaries of Van Kampen American Capital, Inc., which is a
wholly owned subsidiary of VK/AC Holding, Inc.
The Reorganization is subject to approval by the holders of a majority of the
outstanding shares of the Van Kampen Fund. Further details of the proposed
Reorganization will be contained in the proxy statement/prospectus expected to
be mailed to shareholders in July, 1995.
The American Capital Fund had assets of $66.1 million on March 31, 1995. Its
objective is to seek to provide investors with a high current return and
relative safety of capital by investing primarily in mortgage-related securities
issued or guaranteed by an agency or instrumentality of the U.S. Government. The
American Capital Fund and the Van Kampen Fund have substantially similar
investment objectives and follow generally similar investment policies.
The Van Kampen Fund will continue its normal operations prior to the
Reorganization.
