VAN KAMPEN AMERICAN CAPITAL WORLD PORTFOLIO SERIES TRUST, N-30D, 1996-02-05

VAN KAMPEN AMERICAN CAPITAL WORLD PORTFOLIO SERIES TRUST
N-30D, 1996-02-05

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<PAGE>

TABLE OF CONTENTS

<TABLE>
<S> <C>
Letter to Shareholders...................... 1
Performance Results......................... 3
Portfolio Management Review................. 4
Portfolio of Investments.................... 6
Statement of Assets and Liabilities......... 16
Statement of Operations..................... 17
Statement of Changes in Net Assets.......... 18
Financial Highlights........................ 19
Notes to Financial Statements............... 22
</TABLE>

GEI SAR 1/96

<PAGE>

LETTER TO SHAREHOLDERS

[PHOTO OF] DENNIS J. MCDONNELL AND DON G. POWELL
January 10, 1996

Dear Shareholder:
The second half of 1995 has been very positive for most investors. In addi-
tion to the strong performance in the U.S. markets, many foreign bond and
stock markets have made attractive gains for the period ended November 30,
1995.
The year has been additionally gratifying for those investors who weathered
the difficult markets of 1994 and maintained a long-term perspective. It
serves as a reminder of how a long-term investment strategy--one that includes
a well-rounded portfolio of domestic and foreign investments--can help in-
crease the overall stability and return of an investor's portfolio.

ECONOMIC OVERVIEW
Due in large part to the Federal Reserve Board's efforts to tighten monetary
supply in 1994, the U.S. economy slowed significantly in 1995. As a result,
U.S. interest rates declined and the value of many fixed-income investments
rose. Likewise, after struggling through most of 1994, the U.S. stock market
climbed through the year, with the Dow Jones Industrial Average and the S&P
500-Stock Index gaining over 30 percent year-to-date.
Abroad, bond markets in a number of industrialized countries also rallied
throughout the year. Those countries regarded as being in the U.S. dollar bloc
performed well, particularly in Canada and Australia. These markets are highly
influenced by events in the United States and have tended to mirror its eco-
nomic trends. Year-to-date, Canadian and Australian bond markets provided re-
turns, in dollar terms, of 22.27 percent and 14.16 percent respectively,
according to the J.P. Morgan Global Bond Market Index.
In regard to foreign stock markets, the larger European markets, such as the
United Kingdom and Germany, lagged the smaller European markets due to their
tight monetary policy (keeping short-term rates relatively high), which was
driven by their fear of inflation. Among the smaller European stock markets,
such as Switzerland and Sweden, stocks on average have appreciated in dollar
terms by 37.18 percent and 34.88 percent respectively, year-to-date, according
to the Morgan Stanley Capital International Switzerland and Sweden Indexes.
After declining sharply against the Japanese yen and German mark for more
than a year, the U.S.dollar began to stabilize and even appreciate against
these currencies during the second half of 1995. A strong U.S. dollar tends to
be positive for foreign economies because it makes their goods and services
more affordable for U.S. consumers. Japan, in particular, welcomed the dol-
lar's recent appreciation, as its economy continued to struggle through a deep
recession. For Americans investing in these countries, a stronger U.S. dollar
may have reduced their returns, which are influenced by differences in ex-
change rates, if their portfolios were not strategically diversified.
Continued on page two

1
<PAGE>

ECONOMIC OUTLOOK
We believe foreign markets will continue to be influenced by U.S. interest
rate movements and trends in corporate profitability and foreign exchange
rates. This was recently apparent when several countries, including France, En-
gland, and Germany, lowered short-term interest rates in early December. We be-
lieve this reflects a global trend toward lower interest rates, as inflation
fears continue to subside around the world. With business activity in the U.S.
and other countries slowing, we look for Europe and developing markets to offer
the greatest growth opportunities. We are optimistic about Japan's economy, as
it seeks to take advantage of a weaker yen, recover from a banking crisis, and
become more efficient in its core businesses.
Once again, we believe it is important to remember that financial markets
will inevitably experience fluctuations, but by maintaining a long-term invest-
ment perspective, you may ride the highs and lows of the markets more easily.
And, at the same time, keep in mind the long-term benefits of global investing,
including broad diversification and exposure to, what we believe, will be the
world's top performing markets.
On the following pages, you can read about your Fund's performance for the
period, as well as portfolio management's outlook for the Fund in the coming
months. We hope that you will find the information contained in the question-
and-answer section helpful.
Thank you for your continued confidence in your investment with Van Kampen
American Capital and for the privilege of working with you in seeking to reach
your financial goals.

Sincerely,

[SIGNATURE OF] [SIGNATURE OF]
Don G. Powell Dennis J. McDonnell
Chairman President
Van Kampen American Capital Van Kampen American Capital
Asset Management, Inc. Asset Management, Inc.

2
<PAGE>

PERFORMANCE RESULTS FOR THE PERIOD ENDED NOVEMBER 30, 1995

VAN KAMPEN AMERICAN CAPITAL GLOBAL EQUITY FUND

<TABLE>
<CAPTION>
A SHARES B SHARES C SHARES

TOTAL RETURNS
<S> <C> <C> <C>
Six-month total return based on NAV1................. 8.07% 7.65% 7.58%
Six-month total return2.............................. 1.84% 2.65% 6.58%
One-year total return2............................... 8.45% 9.16% 13.12%
Three-year average annual total return2.............. 9.15% 9.63% N/A
Life-of-Fund average annual total return2............ 7.92% 7.25% 9.50%
Commencement Date.................................... 08/05/91 11/15/91 06/21/93
</TABLE>

N/A = Not Applicable

1Assumes reinvestment of all distributions for the period and does not include
payment of the maximum sales charge (5.75% for A shares) or contingent
deferred sales charge for early withdrawal (5% for B shares and 1% for C
shares).

2Standardized total return. Assumes reinvestment of all distributions for the
period and includes payment of the maximum sales charge (A shares) or
contingent deferred sales charge for early withdrawal (B shares and C shares).

See the Prior Performance section of the current prospectus. Past performance
does not guarantee future results. Investment return and net asset value will
fluctuate with market conditions. Fund shares, when redeemed, may be worth
more or less than their original cost.

3
<PAGE>

PORTFOLIO MANAGEMENT REVIEW

VAN KAMPEN AMERICAN CAPITAL GLOBAL EQUITY FUND
The following is an interview with the management team of the Van Kampen
American Capital Global Equity Fund. The Fund is co-managed by portfolio
managers Jeff New, Van Kampen American Capital (U.S. holdings), Peter Kysel,
John Govett & Co. Limited (international holdings), and Alan T. Sachtleben,
Van Kampen American Capital's executive vice president of equity investments.

Q WHAT WERE THE PREVAILING MARKET CONDITIONS AFFECTING THE GLOBAL STOCK
MARKETS DURING THE SIX MONTHS ENDED NOVEMBER 30, 1995?

A Two trends impacted the world's equity markets during the period.

. First, outside the U.S., a broad economic slowdown became apparent. Growth
in Europe, in particular, began to slow.
. And second, the U.S. dollar reversed its eighteen-month decline in value
against other major currencies. During the second half of 1995, as European
economic growth rates dropped below U.S. levels, the dollar began to stabilize
and then to appreciate--particularly against the Japanese yen.
Given this scenario, the Morgan Stanley Capital International World Index
had a total return of 5.69 percent in U.S. dollar terms (USD) during the six-
month period. The Morgan Stanley Capital International World Index, an unman-
aged index that is used as a benchmark for general global equity funds. This
index does not reflect any commissions or fees that would be incurred by an
investor purchasing the stocks it represents.
The two largest world markets also advanced: In the U.S., the Standard &
Poor's 500-Stock Index increased by 15.62 percent. In Japan, the Nikkei Index
rose by 17.06 percent in local currency. These unmanaged indexes are thought
to be generally representative of stock market activity in the specified coun-
tries.
Elsewhere, the European markets increased by about 3.5 percent, the Pacific
Basin markets (outside Japan) showed a small decline of .08 percent and the
emerging markets fell by 7.17 percent. (As usual, the Fund maintained very low
exposure to emerging markets.)

Q HOW DID YOU POSITION THE FUND IN RESPONSE TO THE EVENTS OF THE PAST YEAR?

A Normally, as outlined in the prospectus, at least 65 percent of the
Fund's assets are invested in the equity securities of at least three
countries, including the United States. Consistent with this strategy, and to
take advantage of ongoing strength in the U.S. equity market, U.S. stocks con-
stituted the largest single category of investments during the past six
months.
Having taken measures to protect the Fund against the depreciating yen, we
also maintained a fairly consistent-to-slightly-higher weighting in Japan dur-
ing the reporting period. This is because we believe the outlook for Japan's
corporate sector is positive in light of the country's improving economic fun-
damentals (see below for further commentary).
The Fund's overall weighting in continental European markets was also main-
tained at a consistent level throughout the period. These holdings were diver-
sified among over 20 markets, with special emphasis on Switzerland, Sweden and
France, where corporate earnings have been particularly attractive. (Sweden,
with a six-month return of 22.44 percent in USD, was the top-performing market
in this region during the period.)

4
<PAGE>

[PIE CHART OF] TOP 5 COUNTRIES--PERCENTAGE OF TOTAL NET ASSETS AS OF
NOVEMBER 30, 1995

--UNITED STATES 27%
--CONTINENTAL EUROPE 26%
--HONG KONG 4%
--JAPAN 17%
--UNITED KINGDOM 11%

--OTHER 15%

Q HOW DID THE FUND PERFORM DURING THE YEAR ENDED NOVEMBER 30, 1995?

A We are pleased to report that the Fund's focus on investing in larger,
established markets has proven particularly effective. To elaborate, dur-
ing the six months ended November 30, 1995, the Fund (Class A shares) achieved
a total return at net asset value (without a sales charge) of 8.07 percent/1/.
This is notably higher than the Morgan Stanley Capital International World
Index's 5.69 percent total return for the same period. (Please refer to the
chart on page three for additional Fund performance results.)

Q WHAT IS YOUR OUTLOOK FOR THE GLOBAL EQUITY MARKET IN 1996 AND, MORE
SPECIFICALLY, FOR THE FUND.

A Our outlook for the U.S. remains optimistic due to continued slow eco-
nomic growth, low inflation and the hope for a government budget resolu-
tion. However, corporate earnings growth is slowing and the U.S. equity market
is probably fairly valued at this point. As a result, we expect positive--al-
beit modest--returns from U.S. stocks as we move into the new year.
Outside the U.S., we see ongoing opportunity in Japan where an easing mone-
tary policy has already resulted in greater liquidity and rising stock prices.
We expect this trend to continue and to spill over into other Far Eastern mar-
kets. As such, we plan to maintain our holdings in Japan and the Far East.
In Europe, we believe interest rates should continue to decline throughout
1996. Anticipating this, we continue to favor investments in capital equip-
ment, financial services and other service-oriented companies which tend to
thrive in a lower-interest rate environment.
Overall, world inflationary pressures remain low and the central banks ap-
pear to be ready to loosen their monetary policies in response to the subdued
level of economic growth. Given this, we feel conditions remain in place for
the extended period of appreciation in the global equity markets.

[SIGNATURE OF] [SIGNATURE OF] [SIGNATURE OF]
Alan T. Sachtleben Jeff D. New Peter Kysel
Van Kampen American Capital Van Kampen American Capital John Govett & Co., Ltd.
Equity Investments Portfolio Manager Portfolio Manager

5
Please see footnotes on page three.
<PAGE>

PORTFOLIO OF INVESTMENTS

November 30, 1995 (Unaudited)

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Description Market Value
- --------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS AND EQUIVALENTS 93.5%
AUSTRALIA 0.7%
90,000 Pioneer International................................ $ 229,776
70,000 Smith Howard......................................... 310,153
49,000 Tab Corp Holdings.................................... 139,646
300,000 TNT.................................................. 418,584
------------
1,098,159
------------
AUSTRIA 0.2%
1,800 AMS Austria Mikros................................... 316,466
------------
BELGIUM 0.2%
9,100 GIB.................................................. 359,347
------------
BRAZIL 0.7%
50,000 Centrais, Class B.................................... 687,500
40,000 Usiminas Usi......................................... 360,000
------------
1,047,500
------------
CANADA 0.7%
* 7,700 BCE.................................................. 258,603
* 15,000 Canadian Pacific..................................... 276,040
95,000 Grandetel Technologies, Inc.......................... 59,375
11,000 Inco................................................. 394,737
------------
988,755
------------
FINLAND 0.7%
8,000 Kymmene Corp......................................... 217,613
14,000 Nokia (AB) OY........................................ 768,158
------------
985,771
------------
FRANCE 4.4%
2,000 Castorama Dubois..................................... 316,601
8,400 Christian Dior....................................... 809,618
* 488 Club Mediterranee.................................... 39,408
7,500 Credit Local De France............................... 565,374
6,400 Lyonnaise Des Eaux................................... 613,005
11,880 Primagaz (Cie Gaz)................................... 885,554
* 1,080 Primagaz (Cie Gaz), Warrants......................... 8,397
8,800 Sanofi............................................... 509,432
10,000 SGS Thomson Micro.................................... 376,716
1,990 Sidel................................................ 626,049
6,675 Societe Generale..................................... 779,787
33,000 Uninor Sacilor....................................... 475,443
4,900 Union Assurance Federales............................ 529,226
------------
6,534,610
------------
GERMANY 4.5%
* 18,400 Adidas............................................... 980,875
2,060 Bayer................................................ 535,973
</TABLE>

6
See Notes to Financial Statements
<PAGE>

PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1995 (Unaudited)

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Description Market Value
- --------------------------------------------------------------------------------
<C> <S> <C>
800 Bayer Motoren Werk.................................... $ 430,893
* 20,000 Berliner Elektro Holdings............................. 666,528
560 Colonia Versicherung CKAG............................. 331,052
2,300 Commerzbank........................................... 531,943
7,250 Deutsche Bank......................................... 340,118
1,000 Ebora Corp............................................ 47,016
2,000 Man................................................... 564,890
400 Mannesmann............................................ 128,798
* 27,900 Praktiker............................................. 864,219
1,495 Siemens............................................... 780,939
900 Wella................................................. 423,149
-----------
6,626,393
-----------
HONG KONG 4.3%
930,000 First Pacific Co...................................... 1,009,968
215,000 Hong Kong Electric.................................... 721,309
455,000 Hong Kong Land Holding................................ 809,900
50,000 HSBC Holdings......................................... 736,920
135,000 Hutchison Whampoa..................................... 762,712
*2,420,000 Jilin Chemical Industry, Class H...................... 500,588
90,000 Sun Hung Kai Properties............................... 724,314
110,000 Swire Pacific......................................... 831,943
76,000 Wharf Holdings........................................ 253,992
-----------
6,351,646
-----------
HUNGARY 0.4%
33,600 Richter Gedeon........................................ 546,000
-----------
INDONESIA 0.4%
28,500 Perusahaan Persero Telekom............................ 598,500
-----------
IRELAND 1.0%
130,000 Bank of Ireland....................................... 939,375
77,000 CRH................................................... 543,433
-----------
1,482,808
-----------
ITALY 0.8%
* 19,200 Gucci Group........................................... 662,400
55,900 Rinascente (La)....................................... 313,202
33,000 Sirti, SPA............................................ 191,087
-----------
1,166,689
-----------
JAPAN 16.7%
50,000 Ajinomoto Co., Inc.................................... 540,540
20,000 Amada, Co............................................. 202,457
43,000 Bank of Tokyo......................................... 701,523
5,000 Barclays De Zoete..................................... 46,000
* 5,000 Barclays De Zozte, Warrants........................... 2,000
</TABLE>

7
See Notes to Financial Statements
<PAGE>

PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1995 (Unaudited)

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Description Market Value
- --------------------------------------------------------------------------------
<C> <S> <C>
30,000 Dainei Telecom Engineering............................. $ 241,769
* 40,000 Dainippon Screen Manufacturing Co...................... 348,305
* 169,000 Denki Kagaku Kogyo..................................... 614,545
20,000 Fuji Bank.............................................. 416,708
15,000 Fuji Photo Film Co..................................... 371,499
80,000 Fujitsu................................................ 943,489
82,000 Hitachi................................................ 830,074
9,000 ICOM Incorporated...................................... 75,892
* 60,000 Isuzu Motors........................................... 247,666
7,000 Ito Yokado Co.......................................... 386,634
* 30,000 Japan Air Lines Co..................................... 191,941
40,000 Kitano Construction Corp............................... 251,990
* 100,000 Kobe Steel............................................. 285,995
25,000 Komatsu................................................ 196,560
70,000 Kumagai Gumi Co........................................ 276,560
9,000 Kyocera Corp........................................... 712,039
10,000 Maezawa Industries..................................... 240,786
130,000 Marubeni Corp.......................................... 689,926
9,000 Maruichi Steel Tube.................................... 165,405
50,000 Matsushita Industries.................................. 742,015
69,000 Mitsubishi Construction................................ 321,435
55,000 Mitsubishi Estate...................................... 621,622
80,000 Mitsubishi Heavy Industries............................ 637,641
30,000 Mitsubishi Trust & Banking Corp. ...................... 459,951
50,000 New Oji Paper Co. ..................................... 459,459
7,500 Nintendo Co. .......................................... 592,629
16,000 Nippon Hodo Co. ....................................... 250,024
71 Nippon Telephone & Telegraph Corp. .................... 579,862
25,000 Nippon Yusen KK........................................ 145,946
40,000 Nishimatsu Construction................................ 479,607
* 60,000 Nissan Diesel Motor Co. ............................... 252,973
* 250,000 NKK Corp. ............................................. 687,961
50,000 Nomura Securities...................................... 982,801
40,000 Obayashi Corp. ........................................ 316,462
35,000 Omron Corp. ........................................... 780,835
35,000 Onward Kashiyama....................................... 522,850
90,000 Ricoh Co............................................... 919,902
10,000 Rohm Co................................................ 610,319
25,000 Sanwa Bank............................................. 484,029
20,000 Shin Etsu Chemical Co. ................................ 412,776
50,000 SXL Corp............................................... 501,228
</TABLE>

8
See Notes to Financial Statements
<PAGE>

PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1995 (Unaudited)

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Description Market Value
- --------------------------------------------------------------------------------
<C> <S> <C>
20,000 TDK Corp. ............................................ $ 1,014,251
25,000 Tokio Marine & Fire Insurance Co. .................... 285,012
13,000 Tokyo Electron........................................ 554,496
18,000 Tokyu Corp. .......................................... 125,071
75,000 Tokyu Department Store................................ 464,373
65,000 Toshiba Corp. ........................................ 468,260
* 20,000 Toyota Motor Corp. ................................... 395,086
35,000 Yamanouchi Pharmarcy.................................. 753,317
-----------
24,802,496
-----------
MALAYSIA 1.1%
115,000 Commerce Asset Holding................................ 557,548
123,000 DCB Holdings.......................................... 324,832
* 30,750 DCB Holdings, Warrants................................ 28,120
155,000 Resorts World......................................... 757,588
-----------
1,668,088
-----------
MEXICO 1.2%
* 71,000 Cemex................................................. 470,375
56,000 Empresas.............................................. 574,000
10,010 Grupo Industria Maseca................................ 6,270
21,000 Telefonos de Mexico, SA............................... 693,000
-----------
1,743,645
-----------
NETHERLANDS 3.3%
10,127 Aegon................................................. 412,760
7,000 KLM................................................... 240,351
12,609 International Nederlanden Group....................... 825,390
27,500 Philips Electronic.................................... 1,081,795
17,500 Philips Electronics, Inc. ............................ 684,687
1,300 Royal Dutch Petroleum Co.............................. 166,888
3,900 Unilever.............................................. 515,408
7,000 Ver Ned Uitgevers..................................... 987,772
-----------
4,915,051
-----------
NORWAY 1.0%
12,000 Kvaerner.............................................. 376,825
6,500 Orkla................................................. 312,294
100,000 Uni Storebrand........................................ 543,257
21,000 Unitor................................................ 273,669
-----------
1,506,045
-----------
PHILIPPINES 0.1%
2,500 Philippine Long Distance Telephone.................... 140,000
-----------
</TABLE>

9
See Notes to Financial Statements
<PAGE>

PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1995 (Unaudited)

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Description Market Value
- --------------------------------------------------------------------------------
<C> <S> <C>
PORTUGAL 0.5%
* 22,000 Investec.............................................. $ 435,356
42,300 Portucel Industrial, SA............................... 260,568
-----------
695,924
-----------
SINGAPORE 2.0%
66,000 Cycle & Carriage...................................... 580,220
75,000 Fraser & Neave........................................ 893,300
113,000 Overseas Union Bank................................... 717,015
140,000 Singapore Land........................................ 838,710
-----------
3,029,245
-----------
SOUTH KOREA 0.8%
* 202 Samsung Electric...................................... 12,877
* 20,374 Samsung Electric Co................................... 1,212,253
-----------
1,225,130
-----------
SPAIN 0.4%
14,400 Banco Santander....................................... 671,778
-----------
SWEDEN 3.9%
22,500 Astra................................................. 827,168
45,000 Celsius............................................... 926,703
3,880 Ericsson (LM) Telephone............................... 91,444
40,000 Ericsson (LM) Telephone, Series B..................... 942,720
10,000 Hoganas............................................... 289,833
240,000 Rottneros............................................. 289,223
50,000 Skandinavska Enskilda Banken.......................... 388,986
14,400 Skanska, AB, Series B................................. 494,241
40,000 Stadshypotek.......................................... 805,431
35,000 Stora Kopparbergs..................................... 445,809
13,400 Svedala Industrial.................................... 371,001
-----------
5,872,559
-----------
SWITZERLAND 5.0%
* 1,500 Adia.................................................. 260,315
1,640 Alusuisse Lonza Holdings.............................. 1,330,974
240 Baloise Holdings...................................... 484,900
5,000 CS Holdings........................................... 474,266
1,600 Ciba Geigy............................................ 1,426,457
6,600 Logitech International................................ 656,912
750 Nestle................................................ 799,447
400 Publicitas Holdings................................... 374,309
500 Schindler Holdings.................................... 501,914
650 Schweizerischer Bankverein............................ 258,783
450 SGS Holding........................................... 846,023
-----------
7,414,300
-----------
</TABLE>

10
See Notes to Financial Statements
<PAGE>

PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1995 (Unaudited)

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number of
Shares Description Market Value
- --------------------------------------------------------------------------------
<C> <S> <C>
TAIWAN 0.1%
25,000 Walsin Lihwa Corp.................................... $ 226,250
-----------
THAILAND 0.9%
90,000 National Financial & Securities...................... 382,751
11,000 Siam Cement.......................................... 529,014
* 135,000 Telecomasia.......................................... 418,521
-----------
1,330,286
-----------
UNITED KINGDOM 10.8%
150,000 Astec................................................ 279,011
114,000 BAA.................................................. 856,920
75,000 Barclays............................................. 903,628
50,000 BOC Group............................................ 673,224
147,000 British Petroleum Co. ............................... 1,157,861
40,000 British Telecom...................................... 230,557
* 190,000 Cable & Wireless..................................... 1,319,121
20,000 De La Rue............................................ 202,082
129,000 Dixons Group......................................... 814,643
48,000 Eurotherm............................................ 419,596
40,000 Farnell Electronic................................... 415,187
250,000 FKI.................................................. 635,334
38,600 General Accident..................................... 392,678
10,000 Glaxo Wellcome....................................... 133,420
93,500 Granada Group........................................ 916,105
705 Inchcape............................................. 2,536
35,000 London Electricity................................... 494,297
40,000 Marks & Spencer...................................... 270,361
50,000 National Westminster................................. 511,712
125,000 Next................................................. 853,491
37,500 Reed International................................... 599,931
88,000 Reuters Holdings..................................... 830,557
49,000 Sainsbury............................................ 288,434
260,000 Senior Engineering................................... 378,139
49,000 Severn Trent......................................... 500,352
11,500 Shell Transportation & Trading....................... 141,725
50,000 Smithkline Beecham................................... 531,614
100,000 Standard Chartered................................... 929,271
75,000 Tesco................................................ 329,532
-----------
16,011,319
-----------
UNITED STATES 26.7%
* 5,700 Adaptec, Inc......................................... 267,187
2,800 Aetna Life........................................... 205,450
11,900 Allstate Corp........................................ 487,900
</TABLE>

11
See Notes to Financial Statements
<PAGE>

PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1995 (Unaudited)

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Description Market Value
- --------------------------------------------------------------------------------
<C> <S> <C>
3,400 Aluminum Co. America.................................. $ 198,900
3,500 American Radio System Corp............................ 79,625
3,400 Amgen, Inc............................................ 168,725
* 5,100 Analog Devices, Inc................................... 188,700
3,500 Applied Materials, Inc................................ 170,187
3,400 AT & T Corp........................................... 224,400
10,700 Bank of Boston Corp................................... 496,212
3,500 Bank of New York, Inc................................. 164,937
7,000 BankAmerica Corp...................................... 445,375
1,700 BayBanks, Inc......................................... 141,100
* 8,350 Bay Networks, Inc..................................... 375,750
4,400 Boeing Co. ........................................... 320,650
2,700 Bowater, Inc.......................................... 107,325
4,000 Bristol Myers Squibb Co............................... 321,000
1,000 Burlington Northington................................ 80,625
* 3,400 Cabletron Systems, Inc................................ 282,200
* 3,900 Cadence Design Systems, Inc........................... 140,400
2,400 Case Corp. ........................................... 100,200
* 9,600 Cellular Communications, Inc.......................... 459,600
8,300 Chemical Banking Corp................................. 498,000
4,000 Circon Corp........................................... 87,750
* 6,600 Cisco Systems, Inc. .................................. 555,225
2,500 Citicasters, Inc...................................... 80,625
5,100 Citicorp.............................................. 360,825
* 800 Coherent, Inc......................................... 33,600
* 4,500 Community Health System, Inc.......................... 154,125
* 9,400 Compaq Computer Corp.................................. 465,300
11,300 Computer Associates International, Inc................ 740,150
12,400 ConAgra, Inc.......................................... 494,450
3,400 Conrail, Inc.......................................... 237,575
* 5,800 Consolidated Stores Corp.............................. 143,550
* 10,600 Cox Communications, Inc., Class A..................... 212,000
6,600 CPC International, Inc................................ 453,750
1,000 CSX Corp.............................................. 87,625
* 4,500 Cytec Industries, Inc................................. 288,000
* 8,100 Dell Computer Corp.................................... 358,425
3,400 Disney (Walt) Co...................................... 204,425
6,100 Dover Corp............................................ 237,137
* 6,200 DST Systems, Inc...................................... 179,025
* 12,600 Eckerd Corp........................................... 537,075
* 8,100 Emmis Broadcasting Corp............................... 218,700
</TABLE>

12
See Notes to Financial Statements
<PAGE>

PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1995 (Unaudited)

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Description Market Value
- --------------------------------------------------------------------------------
<C> <S> <C>
* 8,100 Evergreen Media Co.................................... $ 196,425
7,200 Exxon Corp............................................ 557,100
10,900 Federal National Mortgage Association................. 1,193,550
* 7,900 Federated Dept. Stores, Inc........................... 230,088
4,000 First Data Corp....................................... 284,000
* 5,500 Foundation Health Corp................................ 251,625
5,800 Franklin Resources, Inc............................... 306,675
6,800 Frontier Corp......................................... 175,950
* 2,700 FTP Software, Inc..................................... 82,012
3,600 Gap, Inc.............................................. 162,900
* 4,600 Gateway 2000, Inc..................................... 127,075
18,100 General Nutrition Co., Inc............................ 400,463
5,300 Genzyme Corp.......................................... 345,825
* 500 Glenayre Technologies, Inc............................ 28,625
* 6,000 Grand Casinos, Inc.................................... 220,500
15,500 Green Tree Financial Corp............................. 437,875
6,300 Greenfield Industries, Inc............................ 193,725
5,100 Guidant Corp.......................................... 190,613
3,300 Halliburton Co........................................ 143,138
* 5,600 Harnischfeger Industries, Inc......................... 189,700
* 7,650 Health Management Association, Inc., Class A.......... 202,725
3,200 Hercules, Inc......................................... 175,600
* 700 Hollywood Entertainment Corp.......................... 11,288
4,400 Illinois Central Corp................................. 178,200
5,600 Illinois Tool Works, Inc.............................. 354,900
400 IMC Global, Inc....................................... 30,950
3,800 Intel Corp............................................ 231,325
* 6,300 International Rectifier Corp.......................... 312,637
3,300 James River Corp...................................... 103,950
6,200 Johnson & Johnson..................................... 537,075
1,500 Johnson Controls, Inc................................. 103,875
* 2,900 KLA Instruments Corp.................................. 100,050
3,700 Komag, Inc............................................ 196,562
* 15,800 Kroger Co............................................. 529,300
* 3,100 LAM Research Corp..................................... 169,725
16,000 LG Chemical, Ltd...................................... 350,080
* 6,600 Lincare Holdings, Inc................................. 176,550
5,200 Linear Technology Corp................................ 235,300
* 2,400 Litton Industries, Inc................................ 107,700
* 3,400 LSI Logic Corp........................................ 142,375
</TABLE>

13
See Notes to Financial Statements
<PAGE>

PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1995 (Unaudited)

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Description Market Value
- --------------------------------------------------------------------------------
<C> <S> <C>
8,500 Marriott International, Inc........................... $ 316,625
2,800 Maxicare Health Plans, Inc............................ 61,250
25,500 MCI Communications Corp............................... 682,125
* 3,400 Medic Computer System, Inc............................ 217,600
* 1,600 Medisense, Inc........................................ 41,200
6,000 Medtronic, Inc........................................ 329,250
5,700 Merck & Co. Inc....................................... 352,688
15,450 Mercury Financial Co.................................. 220,163
* 5,000 Microsoft Corp........................................ 435,625
6,000 Mobil Corp............................................ 626,250
3,000 Monsanto Co........................................... 343,500
3,900 Nautica Enterprises, Inc.............................. 138,450
3,800 Nellcor Puritan Bennett, Inc.......................... 218,500
* 5,100 Nine West Group, Inc.................................. 226,313
* 1,300 Northwest Airlines Corp., Class A..................... 65,488
* 5,000 Oak Technology, Inc................................... 235,000
13,800 Office Max, Inc....................................... 313,950
5,800 Omnicom Group, Inc.................................... 387,150
* 3,100 Oracle System Corp.................................... 140,663
* 1,800 Pairgain Technologies, Inc............................ 90,675
13,400 Panhandle Eastern Corp................................ 380,225
2,400 Parker Hannifin Corp.................................. 88,200
7,100 Penncorp Financial Group, Inc......................... 197,025
13,900 Pepsico, Inc.......................................... 767,975
21,400 Philip Morris Companies, Inc.......................... 1,877,850
17,300 Praxair, Inc.......................................... 503,863
6,000 Reliastar Financial Corp.............................. 259,500
* 4,300 Renal Treatment Centers, Inc. ........................ 173,612
* 13,000 Safeway Inc........................................... 604,500
11,300 Schering-Plough Corp.................................. 648,338
* 5,500 SCI Systems, Inc...................................... 184,250
5,600 Scott Paper Co........................................ 319,900
* 4,000 Seagate Technology, Inc............................... 211,000
9,800 Sears Roebuck & Co.................................... 385,875
12,700 Service Corp. International........................... 515,938
3,400 Sigma Aldrich......................................... 167,450
* 14,900 Smith International, Inc.............................. 251,437
2,400 Snap On, Inc.......................................... 106,200
12,200 Sprint Corp........................................... 488,000
* 5,300 S3, Inc............................................... 100,038
7,050 SunAmerica, Inc....................................... 332,231
</TABLE>

14
See Notes to Financial Statements
<PAGE>

PORTFOLIO OF INVESTMENTS (CONTINUED)

November 30, 1995 (Unaudited)

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Description Market Value
- -------------------------------------------------------------------------------
<C> <S> <C>
* 100 Sun Microsystems, Inc. ............................ $ 8,413
* 9,000 Symantec Corp...................................... 238,500
5,800 Terra Industries, Inc.............................. 79,025
1,100 Texaco Inc......................................... 81,400
1,400 Textron, Inc....................................... 107,275
* 6,800 3Com Corp.......................................... 311,100
* 11,700 Trump Hotels & Casino Resorts...................... 222,300
* 300 UAL Corp........................................... 62,775
2,000 Union Carbide Corp. ............................... 79,250
2,600 United Technologies Corp........................... 243,750
* 11,100 United Waste Systems, Inc.......................... 442,613
5,800 Upjohn Co.......................................... 208,075
* 2,000 US Robotics Corp................................... 219,500
* 3,500 Varity Corp........................................ 135,625
* 5,900 Viacom, Inc., Class B.............................. 284,675
* 7,300 Watson Pharmaceuticals, Inc. ...................... 344,013
900 Williams Companies, Inc............................ 37,800
* 16,600 WorldCom, Inc...................................... 539,500
------------
39,673,277
------------
TOTAL COMMON STOCKS AND EQUIVALENTS (Cost
$127,569,995)..................................... 139,028,037
------------
Principal
Amount
---------- CONVERTIBLE CORPORATE OBLIGATIONS 0.9%
$ 290,000 Acer, Inc., 4.00%, 6/10/01......................... 838,100
400,000 United Micro, 1.25%, 06/08/04...................... 529,000
------------
TOTAL CONVERTIBLE CORPORATE OBLIGATIONS (Cost
$1,461,425)....................................... 1,367,100
------------
REPURCHASE AGREEMENT + 6.0%
6,500,000 Swiss Bank Corp. Government Securities, Inc.,
5.875%, due 12/01/95, repurchase proceeds
$6,501,061........................................ 6,500,000
2,330,000 Swiss Bank Corp. Government Securities, Inc.,
5.890%, due 12/01/95, repurchase proceeds
$2,330,381........................................ 2,330,000
------------
TOTAL REPURCHASE AGREEMENTS (Cost $8,830,000)...... 8,830,000
------------
TOTAL INVESTMENTS (Cost $137,861,420) 100.4%................... 149,225,137
OTHER ASSETS AND LIABILITIES, NET (0.4%)....................... (542,672)
------------
NET ASSETS 100%................................................ $148,682,465
------------
</TABLE>
*Non-income producing security
+dated 11/30/95, collateralized by U.S. Government obligations in a pooled cash
account

15
See Notes to Financial Statements
<PAGE>

STATEMENT OF ASSETS AND LIABILITIES

November 30, 1995 (Unaudited)

- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments, at market value (Cost $137,861,420)................. $149,225,137
Foreign currency, at market value (Cost $447,714)................ 440,242
Cash............................................................. 7,150
Receivable for investments sold.................................. 2,788,479
Interest and dividends receivable................................ 264,609
Receivable for Fund shares sold.................................. 188,846
Net unrealized appreciation of forward currency exchange
contracts........................................................ 136,704
Other assets..................................................... 105,037
------------
TOTAL ASSETS.................................................... 153,156,204
------------
LIABILITIES
Payable for investments purchased................................ 3,790,841
Payable for Fund shares redeemed................................. 240,845
Due to Distributor............................................... 122,556
Due to Adviser................................................... 121,974
Due to shareholder service agent................................. 79,046
Deferred Trustees' compensation.................................. 7,925
Accrued expenses and other payables.............................. 110,552
------------
TOTAL LIABILITIES............................................... 4,473,739
------------
NET ASSETS, equivalent to $12.73 per share for Class A, $12.38
per share for Class B, and $12.49 per share for Class C shares.. $148,682,465
------------
NET ASSETS WERE COMPRISED OF
Shares of beneficial interest, at par; 5,373,233 Class A,
5,919,123 Class B and 561,121 Class C shares outstanding........ $ 11,853
Capital surplus.................................................. 132,824,673
Undistributed net realized gain on securities.................... 5,138,791
Net unrealized appreciation (depreciation) of securities
Investments..................................................... 11,363,717
Forward currency exchange contracts............................. 136,704
Foreign currency................................................ (7,472)
Other foreign denominated assets and liabilities................ (3,297)
Accumulated net investment loss.................................. (782,504)
------------
NET ASSETS....................................................... $148,682,465
------------
</TABLE>

16
See Notes to Financial Statements
<PAGE>

STATEMENT OF OPERATIONS

Six Months Ended November 30, 1995 (Unaudited)

- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends (net of $130,877 of foreign taxes withheld at source)... $ 1,019,139
Interest.......................................................... 132,930
-----------
Total investment income.......................................... 1,152,069
-----------
EXPENSES
Management fees................................................... 708,200
Shareholder service agent's fees and expenses..................... 424,960
Accounting services............................................... 15,187
Service fees--Class A............................................. 80,753
Distribution and service fees--Class B............................ 351,044
Distribution and service fees--Class C............................ 34,145
Trustees' fees and expenses....................................... 22,266
Audit fees........................................................ 25,534
Custodian fees.................................................... 120,330
Legal fees........................................................ 1,098
Reports to shareholders........................................... 29,910
Registration and filing fees...................................... 44,470
Organization expenses............................................. 7,311
-----------
Total expenses................................................... 1,865,208
-----------
Net investment loss.............................................. (713,139)
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES
Net realized gain on securities
Investments...................................................... 6,438,051
Foreign currency and forward currency exchange contracts......... 2,433,663
Net unrealized appreciation (depreciation) of securities during
the period
Investments...................................................... 2,072,288
Foreign currency................................................. (14,330)
Forward currency exchange contracts.............................. 74,099
Other foreign denominated assets and liabilities................. 4,490
-----------
NET REALIZED AND UNREALIZED GAIN ON SECURITIES.................... 11,008,261
-----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. $10,295,122
-----------
</TABLE>

17
See Notes to Financial Statements
<PAGE>

STATEMENT OF CHANGES IN NET ASSETS

(Unaudited)

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended Year Ended
November 30, 1995 May 31, 1995
- --------------------------------------------------------------------------------
<S> <C> <C>
NET ASSETS, beginning of period .............. $131,365,013 $ 95,717,344
------------ ------------
OPERATIONS
Net investment loss.......................... (713,139) (918,859)
Net realized gain (loss) on securities....... 8,871,714 (1,653,364)
Net unrealized appreciation of securities
during the period........................... 2,136,547 6,127,108
------------ ------------
Increase in net assets resulting from
operations.................................. 10,295,122 3,554,885
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM EXCESS OF
BOOK-BASIS NET REALIZED GAIN ON SECURITIES
Class A...................................... -- (1,311,980)
Class B...................................... -- (1,438,472)
Class C...................................... -- (155,182)
------------ ------------
-- (2,905,634)
------------ ------------
CAPITAL TRANSACTIONS
Proceeds from shares sold
Class A...................................... 19,227,740 42,797,541
Class B...................................... 10,324,737 29,086,706
Class C...................................... 1,401,297 4,030,850
------------ ------------
30,953,774 75,915,097
------------ ------------
Proceeds from shares issued for distributions
reinvested
Class A...................................... -- 1,240,023
Class B...................................... -- 1,341,370
Class C...................................... -- 131,350
------------ ------------
-- 2,712,743
------------ ------------
Cost of shares redeemed
Class A...................................... (15,692,960) (26,555,840)
Class B...................................... (6,721,041) (14,514,920)
Class C...................................... (1,517,443) (2,558,662)
------------ ------------
(23,931,444) (43,629,422)
------------ ------------
Increase in net assets resulting from
capital transactions........................ 7,022,330 34,998,418
------------ ------------
INCREASE IN NET ASSETS........................ 17,317,452 35,647,669
------------ ------------
NET ASSETS, end of period (including
accumulated net investment loss of $782,504
and $69,365, respectively)................... $148,682,465 $131,365,013
------------ ------------
</TABLE>

18
See Notes to Financial Statements
<PAGE>

FINANCIAL HIGHLIGHTS

Selected data for a share of beneficial interest outstanding throughout each of
the
periods indicated. (Unaudited)

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A
-------------------------------------------------------
Six Months Aug. 5
Ended Year Ended May 31 1991(/1/) to
November 30, ---------------------------- May 31,
1995 1995(/2/) 1994 1993(/2/) 1992(/2/)
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE
Net asset value,
beginning of period..... $11.79 $11.67 $10.76 $10.44 $ 9.33
------ ------ ------ ------ ------
INCOME FROM INVESTMENT
OPERATIONS
Investment income...... .10 .23 .26 .235 .21
Expenses............... (.14) (.27) (.32) (.29) (.185)
------ ------ ------ ------ ------
Net investment income
(loss).................. (.04) (.04) (.06) (.055) .025
Net realized and
unrealized gain on
securities............. .98 .42 1.0125 .7775 1.145
------ ------ ------ ------ ------
Total from investment
operations.............. .94 .38 .9525 .7225 1.17
------ ------ ------ ------ ------
LESS DISTRIBUTIONS FROM
Net realized gains on
securities............. -- -- (.0425) (.4025) (.06)
Excess of book-basis
net realized gain on
securities............. -- (.26) -- -- --
------ ------ ------ ------ ------
Total distributions..... -- (.26) (.0425) (.4025) (.06)
------ ------ ------ ------ ------
Net asset value, end of
period.................. $12.73 $11.79 $11.67 $10.76 $10.44
------ ------ ------ ------ ------
TOTAL RETURN (/4/)...... 8.07% 3.36% 9.17% 7.13% 12.56%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of
period (millions)....... $68.4 $60.1 $41.8 $12.7 $8.4
Average net assets
(millions).............. $64.6 $54.5 $25.8 $9.2 $6.2
Ratios to average net
assets (annualized)(/3/)
Expenses............... 2.22% 2.29% 2.46% 2.93% 2.07%
Expenses, without
expense reimbursement.. -- -- -- 3.28% --
Net investment income
(loss)................. (.59%) (.35%) (.46%) (.57%) .29%
Net investment loss,
without expense
reimbursement......... -- -- -- (.92%) --
Portfolio turnover rate. 54% 120% 116% 120% 135%
</TABLE>
(1) Commencement of offering of sales.
(2) Based on average month-end shares outstanding.
(3) See Note 2.
(4) Total return for periods of less than one year have not been annualized.
Total return does not consider the effect of sales charges.

19
See Notes to Financial Statements
<PAGE>

FINANCIAL HIGHLIGHTS (CONTINUED)

Selected data for a share of beneficial interest outstanding throughout each of
the periods indicated. (Unaudited)

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class B
--------------------------------------------------------
Six Months Nov. 15,
Ended Year Ended May 31 1991(/1/) to
November 30, ---------------------------- May 31,
1995 1995(/2/) 1994 1993(/2/) 1992(/2/)
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE
Net asset value,
beginning of period..... $11.50 $11.48 $10.67 $10.46 $ 9.78
------ ------ ------ ------ ------
INCOME FROM INVESTMENT
OPERATIONS
Investment income...... .09 .22 .22 .235 .16
Expenses............... (.17) (.35) (.35) (.37) (.165)
------ ------ ------ ------ ------
Net investment loss..... (.08) (.13) (.13) (.135) (.005)
Net realized and
unrealized gain on
securities.............. .96 .41 .9825 .7475 .745
------ ------ ------ ------ ------
Total from investment
operations.............. .88 .28 .8525 .6125 .74
------ ------ ------ ------ ------
LESS DISTRIBUTIONS FROM
Net realized gains on
securities ............ -- -- (.0425) (.4025) (.06)
Excess of book-basis
net realized gain on
securities............. -- (.26) -- -- --
------ ------ ------ ------ ------
Total distributions..... -- (.26) (.0425) (.4025) (.06)
------ ------ ------ ------ ------
Net asset value, end of
period.................. $12.38 $11.50 $11.48 $10.67 $10.46
------ ------ ------ ------ ------
TOTAL RETURN (/4/)...... 7.65% 2.62% 8.21% 6.15% 7.58%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of
period (millions)....... $73.3 $64.7 $48.8 $6.9 $1.2
Average net assets
(millions).............. $70.2 $59.4 $26.4 $2.8 $0.5
Ratios to average net
assets (annualized)(/3/)
Expenses............... 2.98% 3.05% 3.21% 3.88% 3.11%
Expenses, without
expense reimbursement. -- -- -- 4.50% --
Net investment loss.... (1.36%) (1.11%) (1.19%) (1.41%) (.12%)
Net investment loss,
without expense
reimbursement......... -- -- -- (2.02%) --
Portfolio turnover rate. 54% 120% 116% 120% 135%
</TABLE>
(1) Commencement of offering of shares.
(2) Based on average month-end shares outstanding.
(3) See Note 2.
(4) Total return for periods of less than one year have not been annualized.
Total return does not consider the effect of sales charges.

20
See Notes to Financial Statements
<PAGE>

FINANCIAL HIGHLIGHTS (CONTINUED)

Selected data for a share of beneficial interest outstanding throughout each of
the periods indicated. (Unaudited)

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class C
-------------------------------------
Six Months Year June 21,
Ended Ended 1993(/1/) to
November 30, May 31, May 31,
1995 1995(/2/) 1994(/2/)
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period.... $11.61 $11.59 $10.29
------ ------ ------
INCOME FROM INVESTMENT OPERATIONS
Investment income...................... .10 .22 .24
Expenses............................... (.18) (.35) (.37)
------ ------ ------
Net investment loss..................... (.08) (.13) (.13)
Net realized and unrealized gain on
securities.............................. .96 .41 1.4725
------ ------ ------
Total from investment operations........ .88 .28 1.3425
------ ------ ------
LESS DISTRIBUTIONS FROM
Net realized gains on securities ...... -- -- (.0425)
Excess of book-basis net realized gain
on securities.......................... -- (.26) --
------ ------ ------
Total distributions..................... -- (.26) (.0425)
------ ------ ------
Net asset value, end of period.......... $12.49 $11.61 $11.59
------ ------ ------
TOTAL RETURN (/3/)...................... 7.58% 2.60% 13.06%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (millions).... $7.0 $6.6 $5.1
Average net assets (millions)........... $6.8 $6.2 $2.4
Ratios to average net assets
(annualized)
Expenses............................... 2.99% 3.05% 3.21%
Net investment loss.................... (1.36%) (1.13%) (1.15%)
Portfolio turnover rate................. 54% 120% 116%
</TABLE>
(1) Commencement of offering of shares.
(2) Based on average month-end shares outstanding.
(3) Total return for periods of less than one year have not been annualized.
Total return does not consider the effect of sales charges.

21
See Notes to Financial Statements
<PAGE>

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

- -------------------------------------------------------------------------------
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
Van Kampen American Capital World Portfolio Series Trust (formerly American
Capital World Portfolio Series) is registered under the Investment Company Act
of 1940, as amended, as a diversified open-end management investment company
which offers shares in two separate portfolios, one of which is described in
this report: Van Kampen American Capital Global Equity Fund (the "Fund"). The
investment objective of the Fund is to provide long-term growth of capital
through investments in an internationally diversified portfolio of equity se-
curities. Investments in foreign securities involve certain risks not ordinar-
ily associated with investments in securities of domestic issuers, including
fluctuations in foreign exchange rates, future political and economic develop-
ments, and the possible imposition of exchange controls or other foreign gov-
ernmental laws or restrictions. The following is a summary of significant
accounting policies consistently followed by the Fund in the preparation of
its financial statements.

A. INVESTMENT VALUATIONS-Securities listed or traded on a national securities
exchange are valued at the last sale price. Unlisted securities and listed se-
curities for which the last sale price is not available are valued at the most
recent bid price. Securities for which market quotations are not readily
available are valued at fair value under a method approved by the Board of
Trustees.
Short-term investments with a maturity of 60 days or less when purchased are
valued at amortized cost, which approximates market value. Short-term invest-
ments with a maturity of more than 60 days when purchased are valued based on
market quotations until the remaining days to maturity becomes less than 61
days. From such time, until maturity, the investments are valued at amortized
cost.

B. REPURCHASE AGREEMENTS-A repurchase agreement is a short-term investment in
which the Fund acquires ownership of a debt security and the seller agrees to
repurchase the security at a future time and specified price. The Fund may in-
vest independently in repurchase agreements, or transfer uninvested cash bal-
ances into a pooled cash account along with other investment companies advised
by Van Kampen American Capital Asset Management, Inc. (the "Adviser"), the
daily aggregate of which is invested in repurchase agreements. Repurchase
agreements are collateralized by the underlying debt security. The Fund will
make payment for such securities only upon physical delivery or evidence of
book entry transfer to the account of the custodian bank. The seller is re-
quired to maintain the value of the underlying security at not less than the
repurchase proceeds due the Fund.

22
<PAGE>

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

- -------------------------------------------------------------------------------

C. FOREIGN CURRENCY TRANSLATION-The market values of foreign securities, for-
ward currency exchange contracts and other assets and liabilities stated in
foreign currency are translated into U.S. dollars based on quoted exchange
rates as of noon Eastern Time. The cost of securities is determined using his-
torical exchange rates. Income and expenses are translated at prevailing ex-
change rates when accrued or incurred. Gains and losses on the sale of
securities are not segregated for financial reporting purposes between amounts
arising from changes in exchange rates and amounts arising from changes in the
market prices of securities. Realized gain and loss on foreign currency in-
cludes the net realized amount from the sale of currency and the amount real-
ized between trade date and settlement date on security transactions.

D. FORWARD CURRENCY EXCHANGE CONTRACTS-The Fund enters into forward currency
exchange contracts in order to hedge its exposure to changes in foreign cur-
rency exchange rates on its foreign portfolio holdings or settle transactions.
A forward currency exchange contract is a commitment to buy or sell a foreign
security at a set price on a future date. Changes in the value of the contract
are recognized by marking the contract to market on a daily basis to reflect
current currency translation rates. The Fund realizes gains or losses at the
time the forward currency exchange contract is closed. Risks may arise as a
result of the potential inability of the counterparties to meet the terms of
their contracts, and from unanticipated movements in the value of a foreign
currency relative to the U.S. dollar.

E. FUTURES CONTRACTS-Transactions in futures contracts are utilized in strate-
gies to manage the market risk of the Fund's investments by increasing or de-
creasing the percentage of assets effectively invested. The purchase of a
futures contract increases the impact on net asset value of changes in the
market price of investments. There is also a risk that the market movement of
such instruments may not be in the direction forecasted.
Upon entering into futures contracts, the Fund maintains, in a segregated
account with its custodian, securities with a value equal to its obligation
under the futures contracts. A portion of these funds is held as collateral in
an account in the name of the broker, the Fund's agent in acquiring the
futures position. During the period the futures contract is open, changes in
the value of the contract ("variation margin") are recognized by marking the
contract to market on a daily basis. As unrealized gains or losses are in-
curred, variation margin payments are received from or made to the broker.
Upon the closing or cash settlement of a contract, gains or losses are real-
ized. The cost of securities acquired through delivery under a contract is ad-
justed by the unrealized gain or loss on the contract.

23
<PAGE>

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

- -------------------------------------------------------------------------------

F. FEDERAL INCOME TAXES-No provision for federal income taxes is required be-
cause the Fund has elected to be taxed as a "regulated investment company" un-
der the Internal Revenue Code and intends to maintain this qualification by
annually distributing all of its taxable net investment income and taxable net
realized gains on investments to its shareholders. In the 1995 fiscal year,
the Fund designated $1,241,000 as a capital gain dividend for the purpose of
the dividend paid deduction. Additionally, approximately $3.7 million of post
October losses are deferred for tax purposes to the 1996 fiscal year.

G. INVESTMENT TRANSACTIONS AND RELATED INVESTMENT INCOME-Investment transac-
tions are accounted for on the trade date. Realized gains and losses on in-
vestments are determined on the basis of identified cost. Dividend income is
recorded on the ex-dividend date or when information becomes available, which-
ever is later. Interest income is accrued daily.
Under the applicable foreign tax laws, a withholding tax may be imposed on
interest, dividends and realized gains generated from foreign investments.
Such withholding taxes are reflected on the Statement of Operations as a re-
duction of the related income or gain.

H. DIVIDENDS AND DISTRIBUTIONS-Dividends and distributions to shareholders are
recorded on the record date. The Fund distributes tax basis earnings in accor-
dance with the minimum distribution requirements of the Internal Revenue Code,
which may differ from generally accepted accounting principles. Such dividends
or distributions may result in dividends or distributions in excess of finan-
cial statement earnings.

I. ORGANIZATION COSTS-Organization expenses of approximately $75,000 were de-
ferred and are being amortized over a five year period ending September, 1996.

24
<PAGE>

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

- -------------------------------------------------------------------------------
restrictive expense limitation in effect was California's which aggregated 2
1/2% of the first $30 million of average daily net assets, 2% of the next $70
million of average daily net assets and 1 1/2% of the average daily net assets
in excess of $100 million. No reimbursement was made during the current peri-
od.
ACCESS Investor Services, an affiliate of the Adviser, serves as the Fund's
shareholder service agent. These services are provided at cost plus a profit.
For the period, such fees aggregated $362,937.
The Fund was advised that Van Kampen American Capital Distributors, Inc.
(the "Distributor") and Advantage Capital Corporation (the "Retail Dealer"),
both affiliates of the Adviser, received $17,763 and $12,303, respectively, as
their portion of the commissions charged on sales of Fund shares during the
period.
Under the Distribution Plans, each class of shares pays up to .25% per annum
of its average net assets to reimburse the Distributor for expenses and serv-
ice fees incurred. Class B and Class C shares pay an additional fee of up to
.75% per annum of their average daily net assets to reimburse the Distributor
for its distribution expenses. Actual distribution expenses incurred by the
Distributor for Class B and Class C shares may exceed the amounts reimbursed
to the Distributor by the Fund. At the end of the period, the unreimbursed ex-
penses incurred by the Distributor under the Class B and Class C plans aggre-
gated approximately $1.9 million and $95,000, respectively, and may be carried
forward and reimbursed through either the collection of the contingent de-
ferred sales charges from share redemptions or, subject to the annual renewal
of the plans, future Fund reimbursements of distribution fees.
Legal fees were for services rendered by O'Melveny & Myers, counsel for the
Fund. Lawrence J. Sheehan, of counsel to that firm, is a trustee of the Fund.
Certain officers and trustees of the Fund are officers and trustees of the
Adviser, the Distributor, the Retail Dealer and the shareholder service agent.

NOTE 3--INVESTMENT ACTIVITY
During the period, the cost of purchases and proceeds from sales of invest-
ments, excluding short-term investments, were $75,659,146 and $74,698,321, re-
spectively.
For federal income tax purposes, the identified cost of portfolio securities
and foreign currency was $138,382,660. Net unrealized appreciation aggregated
$11,282,719, gross unrealized appreciation aggregated $17,157,150 and gross
unrealized depreciation aggregated $5,874,431.

25
<PAGE>

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

- -------------------------------------------------------------------------------
At the end of the period, the Fund held the following open forward currency
exchange contracts:

<TABLE>
<CAPTION>
Unrealized
Settlement U.S. Dollar Appreciation
CURRENCY (000) Date Value (Depreciation)
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Japanese Yen
296,760 (Receivable)..................... 9/24/96 $ 3,040,292 $(40,292)
481,450 (Receivable)..................... 11/13/96 4,965,233 34,767
478,700 (Receivable)..................... 11/13/96 4,936,872 63,128
474,300 (Receivable)..................... 11/13/96 4,891,494 108,506
Swedish Krona
10,302 (Receivable)...................... 11/13/96 1,529,405 (29,405)
----------- --------
$19,363,296 $136,704
----------- --------
</TABLE>

NOTE 4--TRUSTEE COMPENSATION
Trustees who are not affiliated with the Adviser are compensated by the Fund
at the annual rate of $779 plus a fee of $22 per day for Board and Committee
meetings attended. During the period, such fees aggregated $10,704.
The trustees may participate in a voluntary Deferred Compensation Plan (the
"Plan"). The Plan is not funded, and obligations under the Plan will be paid
solely out of the Fund's general accounts. The Fund will not reserve or set
aside funds for the payment of its obligations under the Plan by any form of
trust or escrow. Each trustee covered by the Plan elects to be credited with
an earning component on amounts deferred equal to the income earned by the
Fund on its short-term investments or equal to the total return of the Fund.

NOTE 5--CAPITAL
The Fund offers three classes of shares at their respective net asset values
per share, plus a sales charge which is imposed either at the time of purchase
(the Class A shares) or at the time of redemption on a contingent deferred ba-
sis (the Class B and Class C shares). All classes of shares have the same
rights, except that Class B and Class C shares bear the cost of distribution
fees and certain other class specific expenses. Class B and Class C shares au-
tomatically convert to Class A shares six years and ten years after purchase,
respectively, subject to certain conditions. Realized and unrealized gains or
losses, investment income and expenses (other than class specific expenses)
are allocated daily to each class of shares based upon the relative proportion
of net assets of each class.

26
<PAGE>

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

- -------------------------------------------------------------------------------
The Fund has an unlimited number of shares of $.001 par value beneficial in-
terest authorized. Transactions in shares of beneficial interest were as fol-
lows:

<TABLE>
<CAPTION>
Six Months Ended Year Ended
November 30, 1995 May 31, 1995
- --------------------------------------------------------------------------------
<S> <C> <C>
Shares sold
Class A...................................... 1,538,354 3,727,775
Class B...................................... 846,737 2,555,706
Class C...................................... 113,929 350,959
---------- ----------
2,499,020 6,634,440
---------- ----------
Shares issued for distributions reinvested
Class A...................................... -- 114,288
Class B...................................... -- 126,187
Class C...................................... -- 12,253
---------- ----------
-- 252,728
---------- ----------
Shares redeemed
Class A...................................... (1,259,401) (2,333,611)
Class B...................................... (552,285) (1,306,968)
Class C...................................... (124,542) (229,693)
---------- ----------
(1,936,228) (3,870,272)
---------- ----------
Increase in shares outstanding................. 562,792 3,016,896
---------- ----------
</TABLE>

NOTE 6--FUND REORGANIZATION
On July 21, 1995, the shareholders approved the reorganization of the Fund to
a Delaware Business Trust and the election of fourteen trustees. On August 31,
1995, the reorganization became effective.

27
<PAGE>

FUNDS DISTRIBUTED BY VAN KAMPEN AMERICAN CAPITAL

GLOBAL AND INTERNATIONAL
Global Equity Fund
Global Government Securities Fund
Global Managed Assets Fund
Short-Term Global Income Fund
Strategic Income Fund

EQUITY
Growth
Emerging Growth Fund
Enterprise Fund
Pace Fund
Growth & Income
Balanced Fund
Comstock Fund
Equity Income Fund
Growth and Income Fund
Harbor Fund
Real Estate Securities Fund
Utility Fund

FIXED INCOME
Corporate Bond Fund
Government Securities Fund
High Income Corporate Bond Fund
High Yield Fund
Limited Maturity Government Fund
Prime Rate Income Trust
Reserve Fund
U.S. Government Fund
U.S. Government Trust for Income

TAX-FREE
California Insured Tax Free Fund
Florida Insured Tax Free Income Fund
High Yield Municipal Fund
Insured Tax Free Income Fund
Limited Term Municipal Income Fund
Municipal Income Fund
New Jersey Tax Free Income Fund
New York Tax Free Income Fund
Pennsylvania Tax Free Income Fund
Tax Free High Income Fund
Tax Free Money Fund
Texas Tax Free Income Fund

THE GOVETT FUNDS
Emerging Markets Fund
Global Income Fund
International Equity Fund
Latin America Fund
Pacific Strategy Fund
Smaller Companies Fund

Ask your investment adviser for a prospectus containing more complete
information, including sales charges and expenses. Please read it carefully
before you invest or send money. Or call us direct at 1-800-421-5666 weekdays
from 7:00 a.m. to 7:00 p.m. Central time.

28
<PAGE>

VAN KAMPEN AMERICAN CAPITAL GLOBAL EQUITY FUND

BOARD OF TRUSTEES
J. MILES BRANAGAN
PHILIP P. GAUGHAN
LINDA H. HEAGY
ROGER HILSMAN
R. CRAIG KENNEDY
DONALD C. MILLER
JACK E. NELSON
DON G. POWELL
DAVID REES
JEROME L. ROBINSON
LAWRENCE J. SHEEHAN
FERNANDO SISTO*
WAYNE W. WHALEN
WILLIAM S. WOODSIDE
*Chairman of the Board

OFFICERS
DON G. POWELL
President
CURTIS W. MORELL
Vice President and Treasurer
DENNIS J. MCDONNELL
JEFF NEW
ROBERT C. PECK, JR.
JOHN R. REYNOLDSON
ALAN T. SACHTLEBEN
PAUL R. WOLKENBERG
Vice Presidents
TANYA M. LODEN
Vice President and Controller
RONALD A. NYBERG
Vice President and Secretary
NICHOLAS DALMASO
HUEY P. FALGOUT, JR.
SCOTT E. MARTIN
WESTON B. WETHERELL
Assistant Secretaries
PERRY F. FARRELL
M. ROBERT SULLIVAN
Assistant Treasurers
INVESTMENT ADVISER
VAN KAMPEN AMERICAN CAPITAL
ASSET MANAGEMENT, INC.
2800 Post Oak Blvd.
Houston, Texas 77056

INVESTMENT SUBADVISER
JOHN GOVETT & CO., LTD.
Shackleton House
4 Battle Bridge Lane
London, SE1 2HR England

DISTRIBUTOR
VAN KAMPEN AMERICAN CAPITAL
DISTRIBUTORS, INC.
One Parkview Plaza
Oakbrook Terrace, Illinois 60181

SHAREHOLDER SERVICE AGENT
ACCESS INVESTORS SERVICES, INC.
P.O. Box 418256
Kansas City, Missouri 64141-9256

CUSTODIAN
STATE STREET BANK AND TRUST CO.
225 Franklin Street
Boston, Massachusetts 02110

COUNSEL
O'MELVENY & MYERS
400 South Hope Street
Los Angeles, California 90071

(C)Van Kampen American Capital Distributors, Inc., 1995
All rights reserved.
SM denotes a service mark of
Van Kampen American Capital Distributors, Inc.

This report is submitted for the general information of the shareholders of
the Fund. It is not authorized for distribution to prospective investors un-
less it has been preceded or is accompanied by an effective prospectus of the
Fund which contains additional information on how to purchase shares, the
sales charge, and other pertinent data.

29
<PAGE>

TABLE OF CONTENTS

<TABLE>
<S> <C>
Letter to Shareholders...................... 1
Performance Results......................... 3
Portfolio Management Review................. 4
Portfolio of Investments.................... 6
Statement of Assets and Liabilities......... 7
Statement of Operations..................... 8
Statement of Changes in Net Assets.......... 9
Financial Highlights........................ 10
Notes to Financial Statements............... 13
</TABLE>

GGS SAR 1/96

<PAGE>

LETTER TO SHAREHOLDERS

[PHOTO OF] DENNIS J. MCDONNELL AND DON G. POWELL
January 10, 1996

Continued on page two

1
<PAGE>

Sincerely,

[SIGNATURE OF] [SIGNATURE OF]
Don G. Powell Dennis J. McDonnell
Chairman President
Van Kampen American Capital Van Kampen American Capital
Asset Management, Inc. Asset Management, Inc.

2
<PAGE>

PERFORMANCE RESULTS FOR THE PERIOD ENDED NOVEMBER 30, 1995

VAN KAMPEN AMERICAN CAPITAL GLOBAL GOVERNMENT SECURITIES FUND

<TABLE>
<CAPTION>
A SHARES B SHARES C SHARES

TOTAL RETURNS
<S> <C> <C> <C>
Six-month total return based on NAV/1/.............. 4.42% 4.03% 4.05%
Six-month total return/2/........................... (0.52%) 0.03% 3.05%
One-year total return/2/............................ 6.75% 7.23% 10.32%
Three-year average annual total return/2/........... 5.33% 5.41% N/A
Life-of-Fund average annual total return/2/......... 4.38% 4.64% 4.94%
Commencement Date................................... 11/15/91 11/15/91 04/12/93

DISTRIBUTION RATE AND YIELD
Distribution Rate/3/................................ 6.32% 5.89% 5.93%
SEC Yield/4/........................................ 3.99% 3.51% 3.52%
</TABLE>

N/A = Not Applicable

/1/Assumes reinvestment of all distributions for the period and does not
include payment of the maximum sales charge (4.75% for A shares) or contingent
deferred sales charge for early withdrawal (4% for B shares and 1% for C
shares).

/2/Standardized total return. Assumes reinvestment of all distributions for
the period and includes payment of the maximum sales charge (A shares) or
contingent deferred sales charge for early withdrawal (B shares and C shares).

/3/Distribution Rate represents the monthly annualized distributions of the
Fund at the end of the period and not the earnings of the Fund.

/4/SEC Yield is a standardized calculation prescribed by the Securities and
Exchange Commission for determining the amount of net income a portfolio
should theoretically generate for the 30-day period ending as shown above.

3
<PAGE>

PORTFOLIO MANAGEMENT REVIEW

VAN KAMPEN AMERICAN CAPITAL GLOBAL GOVERNMENT SECURITIES FUND
The following is an interview with the management team of Van Kampen American
Capital Global Government Securities Fund. The Fund is co-managed by portfolio
managers John R. Reynoldson, Van Kampen American Capital (U.S. holdings), Alan
Doyle, John Govett & Co. Limited (international holdings), and Robert C. Peck,
Jr., Van Kampen American Capital's executive vice president of fixed-income
investments.

Q WHAT HAS HAPPENED IN THE WORLD BOND MARKETS SINCE THE LAST REPORT TO
SHAREHOLDERS (MAY 31, 1995)?

A To review briefly, the first half of 1995 was characterized by a signifi-
cant rally in the world's bond markets. During this time, U.S. economic
growth was slower than in Europe and other parts of the world. The U.S. bond
market outperformed other bond markets where growth rates were relatively
higher. This is because higher economic growth rates are often accompanied by
inflationary fears and rising interest rates.
As the second half of the year progressed, however, relative growth profiles
shifted: U.S. economic growth became relatively higher, as growth in other
parts of the world decreased. As a result, bond market leadership began to re-
verse. European and Japanese markets, which had been appreciating along with
the U.S. bond market began to outperform the U.S. market.

Q WHAT MARKET CONDITIONS HAD THE GREATEST IMPACT ON WORLD BOND MARKETS DUR-
ING THE SIX MONTHS ENDED NOVEMBER 30, 1995?

In general, two broad trends influenced global markets during the review
A period.
First, outside the U.S., a broad economic slowdown became apparent.
Growth in Europe, in particular, began to slow sharply. This--in combination
with more moderate economic growth in the U.S.--contributed to a generally
positive environment for the world's bond markets.
Next, the U.S. dollar reversed its eighteen-month decline in value against
other major currencies. During the second half of 1995, as European economic
growth rates dropped below U.S. levels, the dollar began to stabilize and then
to appreciate--particularly against the Japanese yen.

Q HOW DID YOU POSITION THE FUND IN RESPONSE TO THE EVENTS OF THE PAST SIX
MONTHS?

A While exchange rate fluctuations have not been dramatic over the period,
they have been significant enough to warrant a defensive position in U.S.
dollars. We maintained a relatively heavy position in the dollar over the pe-
riod which proved beneficial. Next, we have increased the Fund's European bond
market holdings in an effort to benefit from favorable economic and market
conditions there. As the dollar stabilized and then began to rise against
other currencies, the pressures within the European Exchange Rate Mechanism
were reduced. This allowed smaller European bond markets to outperform those
of Germany and the larger European states. To take advantage of this trend,
the Fund maintained investments in several of these markets over the reporting
period.
Finally, in a similar fashion, other dollar bloc markets, such as New Zea-
land and Australia, also appreciated faster than the U.S. market. To help cap-
ture those returns, the Fund

4
<PAGE>

held investments in the Australian market--primarily during the latter part of
the period under review.

Van Kampen American Capital Q HOW DID THE FUND PERFORM DURING THE SIX
Global Government MONTHS ENDED NOVEMBER 30, 1995?
Securities Fund
A Class A shares achieved a total return at
Countries Represented net asset value (without a sales charge) of
in the Portfolio 4.42 percent/1/. Over the same period, the J.P.
as of November 30, 1995 Morgan Global Traded Government Index achieved a
total return of 2.61 percent. The Index is an un-
Australia managed index of major foreign and U.S. Govern-
Austria ment bonds, weighted by the total market value of
France each country's securities, and reflects varia-
Germany tions in currency value. It does not reflect any
Netherlands commissions or fees that would be paid by an in-
Spain vestor purchasing the securities it represents.
United States (Please refer to the chart on page three for
addtional Fund performance results.)

Q WHAT IS YOUR OUTLOOK FOR THE GLOBAL BOND MARKET AS WE ENTER 1996?

A Going forward, we believe the economic conditions underlying global bond
markets should remain positive. We base this outlook on three key points:
. Economic growth is subdued in Europe and Japan, and running at
sustainable rates in the United States and the United Kingdom.
. Inflation rates have proven to be surprisingly low in all parts of the
industrialized world--we do not expect any sudden resurgence of growth
and inflationary fears.
. The economic imbalances which led to the sharp exchange rate movements of
1994 and the first half of 1995 are no longer present, and we expect
currency movements to be moderate.
Given this, we expect global bond prices to remain relatively stable during
the first part of 1996, and believe that there may be potential for further
modest gains.

[SIGNATURE OF] [SIGNATURE OF] [SIGNATURE OF]
Robert C. Peck, Jr. John R. Reynoldson Alan Doyle
Van Kampen American Van Kampen American John Govett & Co. Limited
Capital Capital Portfolio Manager
Executive Vice President Portfolio Manager
Fixed Income Investments

Please see footnotes on page three.

5
<PAGE>

PORTFOLIO OF INVESTMENTS

November 30, 1995 (Unaudited)

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
UNITED STATES GOVERNMENT OBLIGATIONS
76.1%
$*30,500 Treasury Notes....................... 8.000% 10/15/96 $ 31,167,340
*65,650 Treasury Notes....................... 8.875 02/15/96 66,101,672
*32,000 Treasury Notes....................... 9.250 01/15/96 32,140,160
------------
TOTAL UNITED STATES GOVERNMENT
OBLIGATIONS
(Cost $130,655,078)................. 129,409,172
------------
REPURCHASE AGREEMENT 21.0%
35,755 Swiss Bank Corp. Government
Securities, Inc., dated 11/30/95
(collateralized by U.S. Government
obligations in a pooled cash
account) repurchase proceeds
$35,760,835
(Cost $35,755,000).................. 5.875 12/01/95 35,755,000
------------
TOTAL INVESTMENTS (Cost $166,410,078) 97.1%.................... 165,164,172
OTHER ASSETS AND LIABILITIES, NET 2.9%......................... 4,899,738
------------
NET ASSETS 100%................................................ $170,063,910
------------
</TABLE>
*Securities placed as collateral for forward commitments (see Note 1D).

<TABLE>
FORWARD PURCHASE COMMITMENTS
<CAPTION>
Par
Amount Unrealized
(000) Description Coupon Maturity Appreciation
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
A$ 21,000 AUSTRALIA (Commonwealth),
settlement 3/96................... 10.000% 10/15/07 $ 677,706
A 50,000 AUSTRIA (Government of),
settlement 12/95.................. 6.875 06/20/05 74,230
FF 60,350 FRANCE (Government of), settlement
1/96.............................. 7.750 10/25/05 272,673
DM 36,200 GERMANY (Treuhandanstalt),
settlement 2/96................... 6.750 05/13/04 727,676
N 17,000 NETHERLANDS (Dutch Government),
settlement 3/96................... 7.000 06/15/05 304,050
SP1,100,000 SPAIN (Government of), settlement
12/95............................. 10.000 02/28/05 388,204
UNITED STATES
$ 8,000 Federal Home Loan Mtg. Corp.,
settlement 1/96................... 7.500 01/01/99 38,720
8,000 Government National Mtg.
Association, settlement 1/96...... 8.000 01/01/99 70,900
26,000 Treasury Notes, settlement 3/96... 5.750 08/15/03 187,005
8,400 Treasury Notes, settlement 3/96... 7.500 03/13/96 152,025
----------
TOTAL FORWARD PURCHASE COMMITMENTS
(Total obligations $130,157,876).................. $2,893,189
----------
</TABLE>

6
See Notes to Financial Statements
<PAGE>

STATEMENT OF ASSETS AND LIABILITIES

November 30, 1995 (Unaudited)

- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS
Investments, at market value (Cost $166,410,078)................. $165,164,172
Cash............................................................. 2,238
Receivable for offsetting forward bond commitments............... 19,872,406
Interest receivable.............................................. 3,147,150
Unrealized appreciation of forward purchase commitments ......... 2,893,189
Receivable for Fund shares sold.................................. 224,618
Other assets..................................................... 10,278
------------
TOTAL ASSETS.................................................... 191,314,051
------------
LIABILITIES
Payable for offsetting forward bond commitments.................. 19,263,761
Unrealized depreciation of currency exchange contracts........... 735,773
Payable for Fund shares redeemed................................. 462,267
Dividends payable................................................ 370,304
Due to Distributor............................................... 149,158
Due to Adviser................................................... 106,199
Due to shareholder service agent................................. 44,587
Deferred Trustees' compensation.................................. 11,132
Accrued expenses................................................. 106,960
------------
TOTAL LIABILITIES............................................... 21,250,141
------------
NET ASSETS, equivalent to $8.32 per share for Class A shares,
$8.36 per share for Class B shares, and $8.30 per share for
Class C shares.................................................. $170,063,910
------------
NET ASSETS WERE COMPRISED OF
Shares of beneficial interest, at par; 5,339,608 Class A shares,
13,291,059 Class B shares and 1,743,185 Class C shares outstand-
ing............................................................. $ 20,374
Capital surplus.................................................. 195,800,253
Accumulated net realized loss on securities...................... (26,673,968)
Net unrealized appreciation (depreciation) of securities
Investments..................................................... (1,245,906)
Forward purchase commitments.................................... 2,893,189
Forward currency exchange contracts............................. (735,773)
Offsetting forward bond commitments............................. (277,953)
Other foreign denominated assets and liabilities................ (17,720)
Undistributed net investment income.............................. 301,414
------------
NET ASSETS....................................................... $170,063,910
------------
</TABLE>

7
See Notes to Financial Statements
<PAGE>

STATEMENT OF OPERATIONS

Six Months Ended November 30, 1995 (Unaudited)

- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest........................................................... $7,386,504
----------
EXPENSES
Management fees.................................................... 669,748
Shareholder service agent's fees and expenses...................... 231,978
Accounting services................................................ 15,187
Service fees--Class A.............................................. 56,596
Distribution and service fees--Class B............................. 583,980
Distribution and service fees--Class C............................. 82,633
Trustees' fees and expenses........................................ 25,146
Audit fees......................................................... 27,548
Custodian fees..................................................... 85,110
Legal fees......................................................... 1,710
Reports to shareholders............................................ 24,071
Registration and filing fees....................................... 36,391
Organization expenses.............................................. 1,404
----------
Total expenses.................................................... 1,841,502
----------
NET INVESTMENT INCOME.............................................. 5,545,002
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES
Net realized gain (loss) on securities
Investments and forward commitments............................... 7,002,603
Futures contracts................................................. 364,969
Foreign currency.................................................. (89,448)
Foreign currency exchange contracts............................... (3,666,204)
Net unrealized appreciation (depreciation) of securities during the
period
Investments....................................................... (2,867,600)
Forward purchase commitments...................................... (190,122)
Foreign currency.................................................. 1,450
Forward currency exchange contracts............................... 708,718
Offsetting forward bond commitments............................... 117,399
Other foreign denominated assets and liabilities.................. (15,235)
----------
NET REALIZED AND UNREALIZED GAIN ON SECURITIES..................... 1,366,530
----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................... $6,911,532
----------
</TABLE>

8
See Notes to Financial Statements
<PAGE>

STATEMENT OF CHANGES IN NET ASSETS

(Unaudited)

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended Year Ended
November 30, 1995 May 31, 1995
- -------------------------------------------------------------------------------
<S> <C> <C>
NET ASSETS, beginning of period.............. $189,779,616 $233,762,956
------------ ------------
OPERATIONS
Net investment income....................... 5,545,002 13,818,216
Net realized gain (loss) on securities...... 3,611,920 (13,654,555)
Net unrealized appreciation (depreciation)
of securities during the
period..................................... (2,245,390) 12,319,494
------------ ------------
Increase in net assets resulting from opera-
tions...................................... 6,911,532 12,483,155
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM NET
INVESTMENT INCOME
Class A..................................... (1,506,517) (4,034,848)
Class B..................................... (3,443,354) (8,907,916)
Class C..................................... (480,676) (1,423,252)
------------ ------------
(5,430,547) (14,366,016)
------------ ------------
NET EQUALIZATION DEBITS...................... -- (902,657)
------------ ------------
CAPITAL TRANSACTIONS
Proceeds from shares sold
Class A..................................... 4,990,663 8,153,327
Class B..................................... 5,808,857 19,270,979
Class C..................................... 1,940,161 3,154,166
------------ ------------
12,739,681 30,578,472
------------ ------------
Proceeds from shares issued for
distributions reinvested
Class A..................................... 928,399 2,361,328
Class B..................................... 1,972,977 5,045,660
Class C..................................... 285,554 875,506
------------ ------------
3,186,930 8,282,494
------------ ------------
Cost of shares redeemed
Class A..................................... (9,726,166) (24,576,393)
Class B..................................... (21,000,675) (46,690,375)
Class C..................................... (6,396,461) (8,792,020)
------------ ------------
(37,123,302) (80,058,788)
------------ ------------
Decrease in net assets resulting from capital
transactions................................ (21,196,691) (41,197,822)
------------ ------------
DECREASE IN NET ASSETS....................... (19,715,706) (43,983,340)
------------ ------------
NET ASSETS, end of period (including
undistributed net investment income of
$301,414 and $186,959, respectively)......... $170,063,910 $189,779,616
------------ ------------
</TABLE>

9
See Notes to Financial Statements
<PAGE>

FINANCIAL HIGHLIGHTS

Selected data for a share of beneficial interest outstanding throughout each of
the periods indicated. (Unaudited)

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A
--------------------------------------------------
Six Months November 15,
Ended Year Ended May 31 1991(/1/) to
November 30, ------------------------ May 31,
1995 1995 1994 1993(/2/) 1992(/2/)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE
Net asset value, beginning
of period................... $8.24 $8.26 $9.01 $9.07 $9.43
----- ----- ------ ----- ------
INCOME FROM INVESTMENT
OPERATIONS
Investment income.......... .35 .72 .92 .98 .62
Expenses................... (.06) (.12) (.14) (.135) (.03)
----- ----- ------ ----- ------
Net investment income....... .29 .60 .78 .845 .59
Net realized and unrealized
gain (loss) on securities.. .066 (.016) (.5715) (.123) (.5245)
----- ----- ------ ----- ------
Total from investment
operations.................. .356 .584 .2085 .722 .0655
----- ----- ------ ----- ------
LESS DISTRIBUTIONS FROM
Net investment income...... (.276) (.604) (.726) (.782) (.4255)
Excess of book-basis net
realized gain on
securities (Note 1I)...... -- -- (.2325) -- --
----- ----- ------ ----- ------
Total distributions......... (.276) (.604) (.9585) (.782) (.4255)
----- ----- ------ ----- ------
Net asset value, end of
period .................... $8.32 $8.24 $8.26 $9.01 $9.07
----- ----- ------ ----- ------
TOTAL RETURN(/3/)........... 4.42% 7.52% 1.89% 8.47% .71%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(millions).................. $44.4 $47.9 $62.8 $36.1 $25.0
Average net assets
(millions).................. $45.3 $54.5 $55.6 $32.4 $14.0
Ratios to average net assets
(annualized)(/4/)
Expenses................... 1.50% 1.42% 1.45% 1.52% .50%
Expenses, without expense
reimbursement.............. -- -- -- -- 1.29%
Net investment income...... 6.77% 7.18% 8.12% 9.33% 10.41%
Net investment income,
without expense
reimbursement............. -- -- -- -- 9.62%
Portfolio turnover rate..... 109% 209% 236% 301% 289%
</TABLE>

(1) Commencement of offering of sales.
(2) Based on average month-end shares outstanding.
(3) Total returns for periods of less than one year have not been annualized.
Total return does not consider the effect of sales charges.
(4) See Note 2.

10
See Notes to Financial Statements
<PAGE>

FINANCIAL HIGHLIGHTS (CONTINUED)

Selected data for a share of beneficial interest outstanding throughout each
of the periods indicated. (Unaudited)

- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class B
--------------------------------------------------
Six Months November 15
Ended Year Ended May 31 1991(/1/)
November 30, ------------------------- to May 31,
1995 1995 1994 1993(/2/) 1992(/2/)
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period.......... $8.28 $8.30 $9.04 $9.09 $9.43
------ ------ ------ ----- ------
INCOME FROM INVESTMENT OPERATIONS
Investment income............................ .35 .71 .90 .98 .605
Expenses..................................... (.09) (.18) (.21) (.20) (.055)
------ ------ ------ ----- ------
Net investment income......................... .26 .53 .69 .78 .55
Net realized and unrealized gain (loss) on
securities................................... .066 (.006) (.5435) (.12) (.5005)
------ ------ ------ ----- ------
Total from investment operations.............. .326 .524 .1465 .66 .0495
------ ------ ------ ----- ------
LESS DISTRIBUTIONS FROM
Net investment income........................ (.246) (.544) (.654) (.71) (.3895)
Excess of book-basis net realized gain on
securities (Note 1I)........................ -- -- (.2325) -- --
------ ------ ------ ----- ------
Total distributions........................... (.246) (.544) (.8865) (.71) (.3895)
------ ------ ------ ----- ------
Net asset value, end of period................ $8.36 $8.28 $8.30 $9.04 $9.09
------ ------ ------ ----- ------
TOTAL RETURN(/3/)............................. 4.03% 6.69% 1.07% 7.95% .53%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (millions).......... $111.2 $123.4 $147.5 $56.7 $22.5
Average net assets (millions)................. $116.8 $133.3 $107.1 $39.6 $11.0
Ratios to average net assets (annualized)(/4/)
Expenses..................................... 2.25% 2.18% 2.22% 2.19% 1.02%
Expenses, without expense reimbursement...... -- -- -- -- 1.82%
Net investment income........................ 6.02% 6.41% 7.30% 8.66% 9.86%
Net investment income, without expense
reimbursement............................... -- -- -- -- 9.07%
Portfolio turnover rate....................... 109% 209% 236% 301% 289%
</TABLE>

11
See Notes to Financial Statements
<PAGE>

FINANCIAL HIGHLIGHTS (CONTINUED)

Selected data for a share of beneficial interest outstanding throughout each
of the periods indicated. (Unaudited)

- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class C
------------------------------------------
Six Months Year Ended April 12,
Ended May 31 1993(/1/) to
November 30, ---------------- May 31,
1995 1995 1994(/2/) 1993(/2/)
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of
period.............................. $8.22 $8.25 $8.99 $9.00
----- ----- ------ -----
INCOME FROM INVESTMENT OPERATIONS
Investment income.................. .33 .69 .83 .12
Expenses........................... (.09) (.18) (.20) (.025)
----- ----- ------ -----
Net investment income............... .24 .51 .63 .095
Net realized and unrealized gain
(loss) on securities................ .086 .004 (.4835) .011
----- ----- ------ -----
Total from investment operations.... .326 .514 .1465 .106
----- ----- ------ -----
LESS DISTRIBUTIONS FROM
Net investment income.............. (.246) (.544) (.654) (.116)
Excess of book-basis net realized
gain on securities (Note 1I)...... -- -- (.2325) --
----- ----- ------ -----
Total distributions................. (.246) (.544) (.8865) (.116)
----- ----- ------ -----
Net asset value, end of period...... $8.30 $8.22 $8.25 $8.99
----- ----- ----- -----
TOTAL RETURN(/3/)................... 4.05% 6.60% 1.19% 8.78%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(millions).......................... $14.5 $18.5 $23.5 $1.4
Average net assets (millions)....... $16.5 $21.2 $14.1 $0.4
Ratios to average net assets
(annualized)........................
Expenses........................... 2.25% 2.18% 2.22% 2.63%
Net investment income.............. 6.03% 6.42% 7.13% 10.06%
Portfolio turnover rate............. 109% 209% 236% 301%
</TABLE>

12
See Notes to Financial Statements
<PAGE>

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

- --------------------------------------------------------------------------------
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
Van Kampen American Capital World Portfolio Series Trust (formerly American
Capital World Portfolio Series, Inc.) is registered under the Investment Com-
pany Act of 1940, as amended, as an open-end, non-diversified management in-
vestment company which offers shares in two separate portfolios, one of which
is described in this report: Van Kampen American Capital Global Government Se-
curities Fund (the "Fund"). The investment objective of the Fund is to seek to-
tal return through a managed balance of foreign and domestic debt securities.
Investments in foreign securities involve certain risks not ordinarily associ-
ated with investments in securities of domestic issuers, including fluctuations
in foreign exchange rates, future political and economic developments, and the
possible imposition of exchange controls or other foreign governmental laws or
restrictions. The following is a summary of significant accounting policies
consistently followed by the Fund in the preparation of its financial state-
ments.

A. INVESTMENT VALUATIONS-Securities listed or traded on a national securities
exchange are valued at the mean between the bid and asked prices. Unlisted se-
curities, and listed securities for which prices are not available, are valued
at prices of comparable securities. Futures contracts are valued at the last
sale price or, if no sales are reported, at the mean between the bid and asked
prices. Securities for which market quotations are not readily available are
valued at fair value under a method approved by the Board of Trustees.
Short-term investments with a maturity of 60 days or less when purchased are
valued at amortized cost, which approximates market value. Short-term invest-
ments with a maturity of more than 60 days when purchased are valued based on
market quotations until the remaining days to maturity becomes less than 61
days. From such time, until maturity, the investments are valued at amortized
cost. U.S. Treasury Notes are held in the portfolio chiefly to support foreign
future or forward positions.

B. FOREIGN CURRENCY TRANSLATION-The market values of foreign securities, for-
ward currency contracts and other assets and liabilities stated in foreign cur-
rency are translated into U.S. dollars based on quoted exchange rates as of
noon Eastern Time. The cost of securities is determined using historical ex-
change rates. Income and expenses are translated at prevailing exchange rates
when accrued or incurred. Gains and losses on the sale of securities are not
segregated for financial reporting purposes between amounts arising from
changes in exchange rates and amounts arising from changes in the market prices
of securities. Realized gain and loss on foreign currency includes the net re-
alized amount from the sale of currency and the amount realized between trade
date and settlement date on security transactions.

13
<PAGE>

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

- -------------------------------------------------------------------------------

C. FORWARD CURRENCY EXCHANGE CONTRACTS-The Fund enters into forward currency
exchange contracts in order to hedge its exposure to changes in foreign cur-
rency exchange rates on its foreign portfolio holdings or settle transactions.
A forward currency exchange contract is a commitment to buy or sell a foreign
currency at a set price on a future date. Changes in the value of the contract
are recognized by marking the contract to market on a daily basis to reflect
current currency translation rates. The Fund realizes gains or losses at the
time the forward currency exchange contract is closed. Risks may arise as a
result of the potential inability of the counterparties to meet the terms of
their contracts, and from unanticipated movements in the value of a foreign
currency relative to the U.S. dollar.

D. FUTURES CONTRACTS AND FORWARD COMMITMENTS-General--Transactions in futures
contracts and forward commitments are utilized in strategies to manage the
market risk of the Fund's investments. The purchase of a futures contract or
forward commitment increases the impact on net asset value of changes in the
market price of investments. Forward commitments have a risk of loss due to
nonperformance of counterparties. There is also a risk that the market move-
ment of such instruments may not be in the direction forecasted. Note 3--In-
vestment Activity contains additional information.
Futures Contracts--Upon entering into futures contracts, the Fund maintains
securities with a value equal to its obligation under the futures contracts in
a segregated account with its custodian. A portion of these funds is held as
collateral in an account in the name of the broker, the Fund's agent in ac-
quiring the futures position. During the period the futures contract is open,
changes in the value of the contract ("variation margin") are recognized by
marking the contract to market on a daily basis. As unrealized gains or losses
are incurred, variation margin payments are received from or made to the bro-
ker. Upon the closing or cash settlement of a contract, gains or losses are
realized. The cost of securities acquired through delivery under a contract is
adjusted by the unrealized gain or loss on the contract.
Forward Commitments--The Fund trades certain securities under the terms of
forward commitments, whereby the settlement for payment and delivery occurs at
a specified future date. Forward commitments are privately negotiated transac-
tions between the Fund and dealers. Upon executing a forward commitment and
during the period of obligation, the Fund maintains collateral of cash or se-
curities in a segregated account with its custodian in an amount sufficient to
relieve the obligation. If the intent of the Fund is to accept delivery of a
security traded under a forward purchase commitment, the commitment is re-
corded as a long-term purchase. For forward purchase commitments which secu-
rity settlement is not intended by the Fund and all forward sale commitments,
changes in the value of the commitment are recognized by marking the commit-
ment to market on a daily basis. During the commitment, the Fund may either
resell or repurchase the forward commitment and enter into a new forward

14
<PAGE>

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

- -------------------------------------------------------------------------------
commitment, the effect of which is to extend the settlement date. In addition,
the Fund may close such forward commitments prior to delivery. Gains and
losses are realized upon the ultimate closing or cash settlement of forward
commitments.

E. REPURCHASE AGREEMENTS-A repurchase agreement is a short-term investment in
which the Fund acquires ownership of a debt security and the seller agrees to
repurchase the security at a future time and specified price. The Fund may in-
vest independently in repurchase agreements, or transfer uninvested cash bal-
ances into a pooled cash account along with other investment companies advised
by Van Kampen American Capital Asset Management, Inc. (the "Adviser"), the
daily aggregate of which is invested in repurchase agreements. Repurchase
agreements are collateralized by the underlying debt security. The Fund will
make payment for such securities only upon physical delivery or evidence of
book entry transfer to the account of the custodian bank. The seller is re-
quired to maintain the value of the underlying security at not less than the
repurchase proceeds due the Fund.

F. FEDERAL INCOME TAXES-No provision for federal income taxes is required be-
cause the Fund has elected to be taxed as a "regulated investment company" un-
der the Internal Revenue Code and intends to maintain this qualification by
annually distributing all of its taxable net investment income and taxable net
realized gains on investments to its shareholders. It is anticipated that no
distributions of capital gains will be made until tax basis capital loss
carryforwards expire or are offset by net realized capital gains.
The net realized capital loss carryforward of approximately $22.3 million
for federal income tax purposes at May 31, 1995 may be utilized to offset cur-
rent or future capital gains until expiration in 2003. Additionally, approxi-
mately $9.8 million of post October losses are being deferred for tax purposes
to the 1996 fiscal year.

G. INVESTMENT TRANSACTIONS AND RELATED INVESTMENT INCOME-Investment transac-
tions are accounted for on the trade date. Realized gains and losses on in-
vestments are determined on the basis of identified cost. Interest income is
accrued daily. Under the applicable foreign tax laws, a withholding tax may be
imposed on interest and realized gains generated from foreign investments.

H. DEBT DISCOUNT AND PREMIUM-The Fund accounts for discounts and premiums on
the same basis as is used for federal income tax reporting. Accordingly, orig-
inal issue discounts on debt securities purchased are amortized over the life
of the security. Premiums on debt securities are not amortized. Market dis-
counts are recognized at the time of sale as realized gains for book purposes
and ordinary income for tax purposes.

15
<PAGE>

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

- -------------------------------------------------------------------------------

I. DIVIDENDS AND DISTRIBUTIONS-Dividends and distributions to shareholders are
recorded on the record date. The Fund distributes tax basis earnings in accor-
dance with the minimum distribution requirements of the Internal Revenue Code,
which may differ from generally accepted accounting principles. Such dividends
or distributions may exceed financial statement earnings.

J. EQUALIZATION-At May 31, 1995, the Fund discontinued the accounting practice
of equalization, which it had used since its inception. Equalization is a
practice whereby a portion of the proceeds from sales and costs of redemptions
of Fund shares, equivalent on a per-share basis to the amount of the undis-
tributed net investment income, is charged or credited to undistributed net
investment income.
The balance of equalization included in undistributed net investment income
at the date of change, which was $3,058,279, was reclassified to capital sur-
plus. Such reclassification had no effect on net assets, results of opera-
tions, or net asset value per share of the Fund.

K. ORGANIZATION COSTS-Organization expenses of approximately $13,000 were de-
ferred and are being amortized over a five year period ending December, 1996.

NOTE 2--MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Adviser serves as investment manager to the Fund. The Adviser has entered
into a subadvisory agreement with John Govett & Co., Ltd. (the "Subadviser"),
who provides advisory services to the Fund and the Adviser with respect to the
Fund's investments in foreign securities. Management fees are calculated
monthly, based on the average daily net assets of the Fund at the annual rate
of .75%. The Adviser pays 50% of its management fee to the Subadviser. From
time to time, the Adviser may elect to reimburse the Fund for a portion of its
management fee. The reimbursement is voluntary and may be discontinued at any
time without prior notice.
ACCESS Investor Services, Inc., an affiliate of the Adviser, serves as the
Fund's shareholder service agent. These services are provided at cost plus a
profit. For the period, such fees aggregated $175,993.
The Fund was advised that Van Kampen American Capital Distributors, Inc.
(the "Distributor") and Advantage Capital Corp. (the "Retail Dealer"), both
affiliates of the Adviser, received $4,678 and $1,061, respectively, as their
portion of the commissions charged on sales of Fund shares during the period.
Under the Distribution Plans, each class of shares pays up to .25% per annum
of its average net assets to reimburse the Distributor for expenses and serv-
ice fees incurred. Class B and Class C shares pay an additional fee of up to
.75% per annum of their average net assets

16
<PAGE>

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

- -------------------------------------------------------------------------------
to reimburse the Distributor for its distribution expenses. Actual distribu-
tion expenses incurred by the Distributor for Class B and Class C shares may
exceed the amounts reimbursed to the Distributor by the Fund. At the end of
the period, the unreimbursed expenses incurred by the Distributor under the
Class B and Class C plans aggregated approximately $5.0 million and $237,000,
respectively, and may be carried forward and reimbursed through either the
collection of the contingent deferred sales charges from share redemptions or,
subject to the annual renewal of the plans, future Fund reimbursements of dis-
tribution fees.
Legal fees were for services rendered by O'Melveny & Myers, counsel for the
Fund, Lawrence J. Sheehan, of counsel to that firm, is a trustee of the Fund.
Certain officers and trustees of the Fund are officers and trustees of the
Adviser, the Distributor, the Retail Dealer and the shareholder service agent.

NOTE 3--INVESTMENT ACTIVITY
During the period, the cost of purchases and proceeds from sales of invest-
ments, excluding short-term investments and forward commitments, were
$202,841,249 and $210,617,520, respectively.
For federal income tax purposes, the identified cost of investments and for-
eign currency owned at the end of the period was $166,416,846. Net unrealized
depreciation of investments aggregated $1,252,674, gross unrealized apprecia-
tion of investments aggregated $199,117 and gross unrealized depreciation of
investments aggregated $1,451,791.
At the end of the period, the Fund held the following forward currency ex-
change contracts and offsetting forward bond commitments.

FORWARD CURRENCY EXCHANGE CONTRACTS

<TABLE>
<CAPTION>
Settlement U.S. Dollar Unrealized
Currency (000) Date Value Depreciation
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
DEUTSCHE MARK
25,000 (payable)....................... 02/16/96 $17,353,953 $(735,773)
----------- --- ---------
</TABLE>

17
<PAGE>

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

- -------------------------------------------------------------------------------
OFFSETTING FORWARD BOND COMMITMENTS

<TABLE>
<CAPTION>
Par U.S. Dollar U.S. Dollar Net Unrealized
Amount (000) Settlement Value of Value of Currency
(Local Currency) Security Date Payable Receivable Depreciation
- ----------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
13,840 New Zealand
8.000%, 4/15/04......... 01/15/96 $ 9,386,602 $ 9,679,040 $ (38,812)
80,000 Sweden (Kingdom of)
6.000%, 02/09/05........ 12/15/95 9,877,159 10,193,366 (239,141)
----------- ----------- ---------
$19,263,761 $19,872,406 $(277,953)
----------- ----------- ---------
</TABLE>

NOTE 4--TRUSTEE COMPENSATION
Trustees who are not affiliated with the adviser are compensated by the Fund
at the annual rate of $840 plus a fee of $24 per day for Board and Committee
meetings attended. During the period, such fees aggregated $10,984.
The trustees may participate in a voluntary Deferred Compensation Plan (the
"Plan"). The Plan is not funded, and obligations under the Plan will be paid
solely out of the Fund's general accounts. The Fund will not reserve or set
aside funds for the payment of its obligations under the Plan by any form of
trust or escrow. Each trustee covered by the Plan elects to be credited with
an earnings component on amounts deferred equal to the income earned by the
Fund on its short-term investments or equal to the total return of the Fund.

NOTE 5--CAPITAL
The Fund offers three classes of shares at their respective net asset values
per share, plus a sales charge which is imposed either at the time of purchase
(the Class A shares) or at the time of redemption on a contingent deferred ba-
sis (the Class B and Class C shares). All classes of shares have the same
rights, except that Class B and Class C shares bear the cost of distribution
fees and certain other class specific expenses. Class B and Class C shares au-
tomatically convert to Class A shares six years and ten years after purchase,
respectively, subject to certain conditions. Realized and unrealized gains or
losses, investment income, and expenses (other than class specific expenses)
are allocated daily to each class of shares based upon the relative proportion
of net assets of each class.

18
<PAGE>

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

<TABLE>
<CAPTION>
Six Months Year Ended
Ended May 31,
November 30, 1995 1995
- --------------------------------------------------------------------------------
<S> <C> <C>
Shares sold
Class A........................................ 607,364 1,027,970
Class B........................................ 704,479 2,425,271
Class C........................................ 236,780 390,014
---------- -----------
1,548,623 3,843,255
---------- -----------
Shares issued for distributions reinvested
Class A........................................ 113,471 298,501
Class B........................................ 240,000 637,479
Class C........................................ 34,986 109,085
---------- -----------
388,457 1,045,065
---------- -----------
Shares redeemed
Class A........................................ (1,187,901) (3,117,182)
Class B........................................ (2,552,306) (5,919,339)
Class C........................................ (783,404) (1,096,832)
---------- -----------
(4,523,611) (10,133,353)
---------- -----------
Decrease in shares outstanding.................. (2,586,531) (5,245,033)
---------- -----------
</TABLE>

NOTE 6--SUBSEQUENT DIVIDENDS
The Board of Trustees of the Fund declared a dividend of $.046 per share for
Class A shares and $.041 per share for both Class B and Class C shares from
net investment income, payable January 16, 1996 to shareholders of record De-
cember 29, 1995.

NOTE 7--FUND REORGANIZATION
On July 21, 1995, the shareholders approved the reorganization of the Fund to
a Delaware Business Trust and the election of fourteen trustees. On August 31,
1995, the reorganization became effective.

19
<PAGE>

FUNDS DISTRIBUTED BY VAN KAMPEN AMERICAN CAPITAL

GLOBAL AND INTERNATIONAL
Global Equity Fund
Global Government Securities Fund
Global Managed Assets Fund
Short-Term Global Income Fund
Strategic Income Fund

EQUITY
Growth
Emerging Growth Fund
Enterprise Fund
Pace Fund
Growth & Income
Balanced Fund
Comstock Fund
Equity Income Fund
Growth and Income Fund
Harbor Fund
Real Estate Securities Fund
Utility Fund

THE GOVETT FUNDS
Emerging Markets Fund
Global Income Fund
International Equity Fund
Latin America Fund
Pacific Strategy Fund
Smaller Companies Fund

20
<PAGE>

VAN KAMPEN AMERICAN CAPITAL GLOBAL GOVERNMENT SECURITIES FUND

OFFICERS
DON G. POWELL
President
CURTIS W. MORELL
Vice President and Treasurer
DENNIS J. MCDONNELL
JEFF NEW
ROBERT C. PECK, JR.
JOHN R. REYNOLDSON
PAUL R. WOLKENBERG
Vice Presidents
TANYA M. LODEN
Vice President and Controller
RONALD A. NYBERG
Vice President and Secretary
NICHOLAS DALMASO
HUEY P. FALGOUT, JR.
SCOTT E. MARTIN
WESTON B. WETHERELL
Assistant Secretaries
PERRY F. FARRELL
M. ROBERT SULLIVAN
Assistant Treasurers

INVESTMENT ADVISER
VAN KAMPEN AMERICAN CAPITAL
ASSET MANAGEMENT, INC.
2800 Post Oak Blvd.,
Houston, Texas 77056

INVESTMENT SUBADVISER
JOHN GOVETT & CO., LTD.
4 Battle Bridge Lane
London, SEI 24R England

DISTRIBUTOR
VAN KAMPEN AMERICAN CAPITAL
DISTRIBUTORS, INC.
One Parkview Plaza
Oakbrook Terrace, Illinois 60181

SHAREHOLDER SERVICE AGENT
ACCESS INVESTOR SERVICES, INC.
P.O. Box 418256
Kansas City, Missouri 64141-9256

CUSTODIAN
STATE STREET BANK AND TRUST CO.
225 Franklin Street,
Boston, Massachusetts 02110

COUNSEL
O'MELVENY & MYERS
400 South Hope Street,
Los Angeles, California 90071