<PAGE> 1
VAN KAMPEN AMERICAN CAPITAL
GLOBAL EQUITY FUND
SUPPLEMENT DATED SEPTEMBER 28, 1996,
TO THE PROSPECTUS DATED SEPTEMBER 28, 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. Van Kampen American Capital Asset Management,
Inc. (the "Adviser"), a wholly owned subsidiary of Van Kampen American Capital,
Inc. is the investment adviser for Van Kampen American Capital Global Equity
Fund (the "Fund").
The proposed transaction may be deemed to cause an assignment, within the
meaning of the Investment Company 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
conditions, 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. The Fund's Board of Trustees approved the new investment
advisory agreement on July 25, 1996, and called a special meeting of
shareholders to consider the new investment advisory agreement, which meeting
will be held on October 25, 1996 (the "Meeting"). The record date for the
meeting was August 27, 1996. Management of the Fund anticipates that investment
advisory fees under the new investment advisory agreement 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
the closing of the transaction will occur on or about October 31, 1996.
Thereafter, VK/AC Holding, Inc. and the Adviser will be indirect subsidiaries of
Morgan Stanley Group Inc.
In connection with providing investment advisory services to the Fund, the
Adviser currently retains John Govett & Co. Limited ("Govett") to provide
investment subadvisory services for the Fund's investments in foreign
securities. At the Meeting, shareholders of the Fund will consider an interim
subadvisory agreement between the Adviser and Govett, which would expire on
March 31, 1997. The interim Govett subadvisory agreement is substantially
identical to the current Govett subadvisory agreement, except for the dates of
execution, effectiveness and termination and except that certain provisions
relating to the change in
<PAGE> 2
control of Govett's corporate parent which are no longer applicable have been
deleted.
At the Meeting, shareholders of the Fund also will consider a new subadvisory
agreement with Morgan Stanley Asset Management Inc. ("MSAM"). The MSAM
subadvisory agreement is similar to the current Govett subadvisory agreement and
the interim Govett subadvisory agreement, except that the proposed MSAM
subadvisory agreement, unlike the current Govett subadvisory agreement and the
interim Govett subadvisory agreement permits, but does not require, the Adviser
and MSAM to allocate to MSAM responsibility for selecting investments in
domestic securities as well as foreign securities. The current Govett
subadvisory agreement and the proposed interim Govett subadvisory agreement
limit the subadviser's responsibility solely to selecting investments in foreign
securities. The Adviser and MSAM currently intend, however, that initially the
Adviser will allocate to MSAM responsibility only for subadvisory services and
the selection of brokers dealers for the purchase and sale of foreign
securities, and not domestic securities, so that MSAM initially will provide
only those services currently provided by Govett. Any change in such policy
would require the approval of the Board of Trustees of the Fund, but not its
shareholders.
MSAM is a wholly-owned subsidiary of Morgan Stanley Group Inc., and after the
Acquisition will be an affiliate of the Adviser. MSAM currently is investment
adviser to four registered open-end investment companies, consisting of an
aggregate of 43 portfolios, and 15 closed-end investment companies. As of June
30, 1996, MSAM, together with its affiliated investment advisory companies, had
approximately $103.5 billion of assets under management and fiduciary advice.
MSAM emphasizes a global investment strategy and benefits from research coverage
of a broad spectrum of investment opportunities worldwide and draws upon the
capabilities of its asset management specialists located in various offices
throughout the world, including New York, London, Tokyo, Singapore, Bombay, Hong
Kong, Milan and Sydney. MSAM also draws upon the research capabilities of Morgan
Stanley and its other affiliates as well as the research and investment ideas of
other companies whose brokerage services MSAM utilizes. MSAM's address is 1221
Avenue of the Americas, New York, New York, 10020.
Morgan Stanley Group Inc. and various of its directly or indirectly owned
subsidiaries, including Morgan Stanley & Co. Incorporated, a registered broker-
dealer and investment adviser, and Morgan Stanley International, are engaged in
a wide range of financial services. Their principal businesses include
securities underwriting, distribution and trading; merger, acquisition,
restructuring and other corporate finance advisory activities; merchant banking,
stock brokerage and research services; asset management; trading of futures,
options, foreign exchange, commodities and swaps (involving foreign exchange,
commodities, indices and interest rates); real estate advice, financing and
investing; and global custody, securities clearance services and securities
lending.
<PAGE> 3
VAN KAMPEN AMERICAN CAPITAL
GLOBAL GOVERNMENT SECURITIES FUND
SUPPLEMENT DATED SEPTEMBER 28, 1996,
TO THE PROSPECTUS DATED SEPTEMBER 28, 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. Van Kampen American Capital Asset Management,
Inc. (the "Adviser"), a wholly owned subsidiary of Van Kampen American Capital,
Inc. is the investment adviser for Van Kampen American Capital Global Government
Securities Fund (the "Fund").
The proposed transaction may be deemed to cause an assignment, within the
meaning of the Investment Company 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
conditions, 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. The Fund's Board of Trustees approved the new investment
advisory agreement on July 25, 1996, and called a special meeting of
shareholders to consider the new investment advisory agreement, which meeting
will be held on October 25, 1996 (the "Meeting"). The record date for the
meeting was August 27, 1996. Management of the Fund anticipates that investment
advisory fees under the new investment advisory agreement 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
the closing of the transaction will occur on or about October 31, 1996.
Thereafter, VK/AC Holding, Inc. and the Adviser will be indirect subsidiaries of
Morgan Stanley Group Inc.
In connection with providing investment advisory services to the Fund, the
Adviser currently retains John Govett & Co. Limited ("Govett") to provide
investment subadvisory services for the Fund's investments in foreign
securities. At the Meeting, shareholders of the Fund will consider an interim
subadvisory agreement between the Adviser and Govett, which would expire on
March 31, 1997. The interim Govett subadvisory agreement is substantially
identical to the current Govett subadvisory agreement, except for the dates of
execution, effectiveness and termination and except that certain provisions
relating to the change in
<PAGE> 4
control of Govett's corporate parent which are no longer applicable have been
deleted.
At the Meeting, shareholders of the Fund also will consider a new subadvisory
agreement with Morgan Stanley Asset Management Inc. ("MSAM"). The MSAM
subadvisory agreement is similar to the current Govett subadvisory agreement and
the interim Govett subadvisory agreement, except that the proposed MSAM
subadvisory agreement, unlike the current Govett subadvisory agreement and the
interim Govett subadvisory agreement permits, but does not require, the Adviser
and MSAM to allocate to MSAM responsibility for selecting investments in
domestic securities as well as foreign securities. The current Govett
subadvisory agreement and the proposed interim Govett subadvisory agreement
limit the subadviser's responsibility solely to selecting investments in foreign
securities. The Adviser and MSAM currently intend, however, that initially the
Adviser will allocate to MSAM responsibility only for subadvisory services and
the selection of brokers dealers for the purchase and sale of foreign
securities, and not domestic securities, so that MSAM initially will provide
only those services currently provided by Govett. Any change in such policy
would require the approval of the Board of Trustees of the Fund, but not its
shareholders.
MSAM is a wholly-owned subsidiary of Morgan Stanley Group Inc., and after the
Acquisition will be an affiliate of the Adviser. MSAM currently is investment
adviser to four registered open-end investment companies, consisting of an
aggregate of 43 portfolios, and 15 closed-end investment companies. As of June
30, 1996, MSAM, together with its affiliated investment advisory companies, had
approximately $103.5 billion of assets under management and fiduciary advice.
MSAM emphasizes a global investment strategy and benefits from research coverage
of a broad spectrum of investment opportunities worldwide and draws upon the
capabilities of its asset management specialists located in various offices
throughout the world, including New York, London, Tokyo, Singapore, Bombay, Hong
Kong, Milan and Sydney. MSAM also draws upon the research capabilities of Morgan
Stanley and its other affiliates as well as the research and investment ideas of
other companies whose brokerage services MSAM utilizes. MSAM's address is 1221
Avenue of the Americas, New York, New York, 10020.
Morgan Stanley Group Inc. and various of its directly or indirectly owned
subsidiaries, including Morgan Stanley & Co. Incorporated, a registered broker-
dealer and investment adviser, and Morgan Stanley International, are engaged in
a wide range of financial services. Their principal businesses include
securities underwriting, distribution and trading; merger, acquisition,
restructuring and other corporate finance advisory activities; merchant banking,
stock brokerage and research services; asset management; trading of futures,
options, foreign exchange, commodities and swaps (involving foreign exchange,
commodities, indices and interest rates); real estate advice, financing and
investing; and global custody, securities clearance services and securities
lending.
