<PAGE> 1
VAN KAMPEN AMERICAN CAPITAL
HIGH YIELD FUND
SUPPLEMENT DATED JULY 1, 1996, TO THE PROSPECTUS DATED
SEPTEMBER 5, 1995, AS PREVIOUSLY SUPPLEMENTED ON OCTOBER 12, 1995,
JANUARY 9, 1996 AND JUNE 1, 1996.
On June 24, 1996, VK/AC Holding, Inc. announced it had entered into an
Agreement and Plan of Merger among Morgan Stanley Group Inc., MSAM Holdings II,
Inc. and MSAM Acquisition Inc., pursuant to which MSAM Acquisition Inc. will be
merged with and into VK/AC Holding, Inc. and VK/AC Holding, Inc. will be the
surviving corporation. Van Kampen American Capital, Inc. is a wholly owned
subsidiary of VK/AC Holding, Inc. The Fund's investment adviser, Van Kampen
American Capital Investment Advisory Corp. (the "Adviser"), is a wholly owned
subsidiary of Van Kampen American Capital, Inc.
The proposed transaction may be deemed to cause an assignment, within the
meaning of the Investment Company Act of 1940 and the Investment Advisers Act of
1940, of the investment advisory agreement between the Adviser and the Fund.
Accordingly, the completion of the transaction is contingent upon, among other
things and subject to certain de minimis exceptions, the approval of both the
Board of Trustees of the Fund and the shareholders of the Fund of a new
investment advisory agreement between the Fund and the Adviser. Management of
the Fund currently anticipates recommending to the Fund's board of trustees that
a special meeting of shareholders be called to obtain such approval and that the
record date for such shareholder meeting be a date in late August. Management of
the Fund also anticipates that investment advisory fees under the new investment
advisory agreement to be voted on at such meeting will be in the same amount as
those paid under the current investment advisory agreement between the Fund and
the Adviser.
MSAM Acquisition Inc. is a wholly owned subsidiary of MSAM Holdings II, Inc.
which, in turn, is a wholly owned subsidiary of Morgan Stanley Group Inc.
Subject to a number of conditions being met, it is currently anticipated that a
closing will occur on or about November 29, 1996. Thereafter, VK/AC Holding,
Inc. and its affiliated entities shall be part of Morgan Stanley Group Inc.
The section of the Prospectus captioned "Purchase of Shares" is hereby
supplemented as follows:
GROUP PURCHASES. Individuals who are members of a "qualified group" may
purchase Class A Shares of the Fund without the imposition of a front end sales
charge. For this purpose, a qualified group is one which (i) has been in
existence for more than six months, (ii) has a purpose other than to acquire
shares of the Fund or similar investments, (iii) has given and continues to give
its endorsement or
<PAGE> 2
authorization, on behalf of the group, for purchase of shares of the Fund and
other funds in the Van Kampen American Capital Family of Funds, (iv) has a
membership that the authorized dealer can certify as to the group's members and
(v) satisfies other uniform criteria established by the Distributor for the
purpose of realizing economies of scale in distributing such shares. A qualified
group does not include one whose sole organizational nexus, for example, is that
its participants are credit card holders of the same institution, policy holders
of an insurance company, customers of a bank or broker-dealer, clients of an
investment adviser or other similar groups. Shares purchased in each group's
participants account in connection with this privilege will be subject to a
contingent deferred sales charge or one percent in the event of redemption
within one year of purchase, and a commission will be paid to authorized dealers
who initiate and are responsible for such sales to each individual as follows:
1.00% on sales to $2 million, plus 0.80% on the next million and 0.50% on the
excess over $3 million.
<PAGE> 3
VAN KAMPEN AMERICAN CAPITAL
SHORT-TERM GLOBAL INCOME FUND
SUPPLEMENT DATED JULY 1, 1996, TO THE PROSPECTUS DATED
MAY 17, 1996, AS PREVIOUSLY SUPPLEMENTED ON JUNE 1, 1996.
On June 24, 1996, VK/AC Holding, Inc. announced it had entered into an
Agreement and Plan of Merger among Morgan Stanley Group Inc., MSAM Holdings II,
Inc. and MSAM Acquisition Inc., pursuant to which MSAM Acquisition Inc. will be
merged with and into VK/AC Holding, Inc. and VK/AC Holding, Inc. will be the
surviving corporation. Van Kampen American Capital, Inc. is a wholly owned
subsidiary of VK/AC Holding, Inc. The Fund's investment adviser, Van Kampen
American Capital Investment Advisory Corp. (the "Adviser"), is a wholly owned
subsidiary of Van Kampen American Capital, Inc.
The proposed transaction may be deemed to cause an assignment, within the
meaning of the Investment Company Act of 1940 and the Investment Advisers Act of
1940, of the investment advisory agreement between the Adviser and the Fund.
Accordingly, the completion of the transaction is contingent upon, among other
things and subject to certain de minimis exceptions, the approval of both the
Board of Trustees of the Fund and the shareholders of the Fund of a new
investment advisory agreement between the Fund and the Adviser. Management of
the Fund currently anticipates recommending to the Fund's board of trustees that
a special meeting of shareholders be called to obtain such approval and that the
record date for such shareholder meeting be a date in late August. Management of
the Fund also anticipates that investment advisory fees under the new investment
advisory agreement to be voted on at such meeting will be in the same amount as
those paid under the current investment advisory agreement between the Fund and
the Adviser.
MSAM Acquisition Inc. is a wholly owned subsidiary of MSAM Holdings II, Inc.
which, in turn, is a wholly owned subsidiary of Morgan Stanley Group Inc.
Subject to a number of conditions being met, it is currently anticipated that a
closing will occur on or about November 29, 1996. Thereafter, VK/AC Holding,
Inc. and its affiliated entities shall be part of Morgan Stanley Group Inc.
The section of the Prospectus captioned "Purchase of Shares" is hereby
supplemented as follows:
GROUP PURCHASES. Individuals who are members of a "qualified group" may
purchase Class A Shares of the Fund without the imposition of a front end sales
charge. For this purpose, a qualified group is one which (i) has been in
existence for more than six months, (ii) has a purpose other than to acquire
shares of the Fund or similar investments, (iii) has given and continues to give
its endorsement or authorization, on behalf of the group, for purchase of shares
of the Fund and other
<PAGE> 4
funds in the Van Kampen American Capital Family of Funds, (iv) has a membership
that the authorized dealer can certify as to the group's members and (v)
satisfies other uniform criteria established by the Distributor for the purpose
of realizing economies of scale in distributing such shares. A qualified group
does not include one whose sole organizational nexus, for example, is that its
participants are credit card holders of the same institution, policy holders of
an insurance company, customers of a bank or broker-dealer, clients of an
investment adviser or other similar groups. Shares purchased in each group's
participants account in connection with this privilege will be subject to a
contingent deferred sales charge or one percent in the event of redemption
within one year of purchase, and a commission will be paid to authorized dealers
who initiate and are responsible for such sales to each individual as follows:
1.00% on sales to $2 million, plus 0.80% on the next million and 0.50% on the
excess over $3 million.
<PAGE> 5
VAN KAMPEN AMERICAN CAPITAL
STRATEGIC INCOME FUND
SUPPLEMENT DATED JULY 1, 1996, TO THE PROSPECTUS DATED
SEPTEMBER 5, 1995, AS PREVIOUSLY SUPPLEMENTED ON OCTOBER 12, 1995,
JANUARY 9, 1996 AND JUNE 1, 1996.
On June 24, 1996, VK/AC Holding, Inc. announced it had entered into an
Agreement and Plan of Merger among Morgan Stanley Group Inc., MSAM Holdings II,
Inc. and MSAM Acquisition Inc., pursuant to which MSAM Acquisition Inc. will be
merged with and into VK/AC Holding, Inc. and VK/AC Holding, Inc. will be the
surviving corporation. Van Kampen American Capital, Inc. is a wholly owned
subsidiary of VK/AC Holding, Inc. The Fund's investment adviser, Van Kampen
American Capital Investment Advisory Corp. (the "Adviser"), is a wholly owned
subsidiary of Van Kampen American Capital, Inc.
The proposed transaction may be deemed to cause an assignment, within the
meaning of the Investment Company Act of 1940 and the Investment Advisers Act of
1940, of the investment advisory agreement between the Adviser and the Fund.
Accordingly, the completion of the transaction is contingent upon, among other
things and subject to certain de minimis exceptions, the approval of both the
Board of Trustees of the Fund and the shareholders of the Fund of a new
investment advisory agreement between the Fund and the Adviser. Management of
the Fund currently anticipates recommending to the Fund's board of trustees that
a special meeting of shareholders be called to obtain such approval and that the
record date for such shareholder meeting be a date in late August. Management of
the Fund also anticipates that investment advisory fees under the new investment
advisory agreement to be voted on at such meeting will be in the same amount as
those paid under the current investment advisory agreement between the Fund and
the Adviser.
MSAM Acquisition Inc. is a wholly owned subsidiary of MSAM Holdings II, Inc.
which, in turn, is a wholly owned subsidiary of Morgan Stanley Group Inc.
Subject to a number of conditions being met, it is currently anticipated that a
closing will occur on or about November 29, 1996. Thereafter, VK/AC Holding,
Inc. and its affiliated entities shall be part of Morgan Stanley Group Inc.
The section of the Prospectus captioned "Purchase of Shares" is hereby
supplemented as follows:
GROUP PURCHASES. Individuals who are members of a "qualified group" may
purchase Class A Shares of the Fund without the imposition of a front end sales
charge. For this purpose, a qualified group is one which (i) has been in
existence for more than six months, (ii) has a purpose other than to acquire
shares of the Fund or similar investments, (iii) has given and continues to give
its endorsement or
<PAGE> 6
authorization, on behalf of the group, for purchase of shares of the Fund and
other funds in the Van Kampen American Capital Family of Funds, (iv) has a
membership that the authorized dealer can certify as to the group's members and
(v) satisfies other uniform criteria established by the Distributor for the
purpose of realizing economies of scale in distributing such shares. A qualified
group does not include one whose sole organizational nexus, for example, is that
its participants are credit card holders of the same institution, policy holders
of an insurance company, customers of a bank or broker-dealer, clients of an
investment adviser or other similar groups. Shares purchased in each group's
participants account in connection with this privilege will be subject to a
contingent deferred sales charge or one percent in the event of redemption
within one year of purchase, and a commission will be paid to authorized dealers
who initiate and are responsible for such sales to each individual as follows:
1.00% on sales to $2 million, plus 0.80% on the next million and 0.50% on the
excess over $3 million.
<PAGE> 7
VAN KAMPEN AMERICAN CAPITAL
EMERGING MARKETS INCOME FUND
SUPPLEMENT DATED JULY 1, 1996, TO THE PROSPECTUS DATED
OCTOBER 27, 1995, AS PREVIOUSLY SUPPLEMENTED ON
FEBRUARY 23, 1996 AND MARCH 13, 1996.
On June 24, 1996, VK/AC Holding, Inc. announced it had entered into an
Agreement and Plan of Merger among Morgan Stanley Group Inc., MSAM Holdings II,
Inc. and MSAM Acquisition Inc., pursuant to which MSAM Acquisition Inc. will be
merged with and into VK/AC Holding, Inc. and VK/AC Holding, Inc. will be the
surviving corporation. Van Kampen American Capital, Inc. is a wholly owned
subsidiary of VK/AC Holding, Inc. The Fund's investment adviser, Van Kampen
American Capital Investment Advisory Corp. (the "Adviser"), is a wholly owned
subsidiary of Van Kampen American Capital, Inc.
The proposed transaction may be deemed to cause an assignment, within the
meaning of the Investment Company Act of 1940 and the Investment Advisers Act of
1940, of the investment advisory agreement between the Adviser and the Fund.
Accordingly, the completion of the transaction is contingent upon, among other
things and subject to certain de minimis exceptions, the approval of both the
Board of Trustees of the Fund and the shareholders of the Fund of a new
investment advisory agreement between the Fund and the Adviser. Management of
the Fund currently anticipates recommending to the Fund's board of trustees that
a special meeting of shareholders be called to obtain such approval and that the
record date for such shareholder meeting be a date in late August. Management of
the Fund also anticipates that investment advisory fees under the new investment
advisory agreement to be voted on at such meeting will be in the same amount as
those paid under the current investment advisory agreement between the Fund and
the Adviser.
MSAM Acquisition Inc. is a wholly owned subsidiary of MSAM Holdings II, Inc.
which, in turn, is a wholly owned subsidiary of Morgan Stanley Group Inc.
Subject to a number of conditions being met, it is currently anticipated that a
closing will occur on or about November 29, 1996. Thereafter, VK/AC Holding,
Inc. and its affiliated entities shall be part of Morgan Stanley Group Inc.
