VAN KAMPEN AMERICAN CAPITAL PRIME RATE INCOME TRUST, 497, 1997-02-12

VAN KAMPEN AMERICAN CAPITAL PRIME RATE INCOME TRUST
497, 1997-02-12

Previous: BRADFORD CAPITAL PARTNERS L P, SC 13G, 1997-02-12

Next: EFFECTIVE MANAGEMENT SYSTEMS INC, SC 13G/A, 1997-02-12



<PAGE>   1
 
                          VAN KAMPEN AMERICAN CAPITAL
                            PRIME RATE INCOME TRUST
 SUPPLEMENT DATED FEBRUARY 11, 1997, TO THE PROSPECTUS DATED NOVEMBER 13, 1996
 
    The Fund's investment adviser, Van Kampen American Capital Investment
Advisory Corp., is an indirect subsidiary of Morgan Stanley Group Inc. On
February 5, 1997, Morgan Stanley Group Inc. and Dean Witter, Discover & Co.
announced that they had entered into an Agreement and Plan of Merger to form
Morgan Stanley, Dean Witter, Discover & Co. Subject to certain conditions being
met, it is currently anticipated that the transaction will close in mid-1997.
Thereafter, Van Kampen American Capital Investment Advisory Corp. will be an
indirect subsidiary of Morgan Stanley, Dean Witter, Discover & Co.
 
    Dean Witter, Discover & Co. is a financial services company with three major
businesses: full service brokerage, credit services and asset management of more
than $100 billion in customer accounts.