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VAN KAMPEN AMERICAN CAPITAL
U.S. GOVERNMENT TRUST FOR INCOME
SUPPLEMENT DATED JANUARY 2, 1997, TO THE PROSPECTUS DATED
JANUARY 30, 1996, AS PREVIOUSLY SUPPLEMENTED ON JUNE 1, 1996, JULY 1, 1996
AND NOVEMBER 1, 1996.
References in the Prospectus that Class C shares automatically convert to
Class A shares are hereby deleted and the following sentence is added to the
section of the Prospectus captioned "ALTERNATIVE SALES ARRANGEMENTS --
CONVERSION FEATURE."
Class C shares purchased before January 1, 1997, and any dividend
reinvestment plan shares received thereon, automatically convert to Class A
shares ten years after the end of the calendar month in which such shares were
purchased. Such conversion will be on the basis of the relative net asset values
per share, without the imposition of any sales load, fee or other charge.
The section of the Prospectus captioned "PURCHASE OF SHARES" hereby is
supplemented by adding the following:
The Distributor is sponsoring a sales incentive program for A.G. Edwards &
Sons, Inc. ("A.G. Edwards"). The Distributor will reallow its portion of the
Fund's sales concession to A.G. Edwards on sales of Class A Shares of the Fund
relating to the "rollover" of any savings into an Individual Retirement Account
("IRA"), the transfer of assets into an IRA and contributions to an IRA,
commencing on January 1, 1997 and terminating on April 15, 1997.
Paragraph (5) of the section of the Prospectus captioned "PURCHASE OF SHARES
- -- NAV PURCHASE OPTIONS" is hereby amended and restated with the following:
(5) Trustees and other fiduciaries purchasing shares for retirement plans of
organizations with retirement plan assets of $3 million or more and
which invest in multiple fund families through national wirehouse
alliance programs.
Paragraphs (8) and (9) of the section of the Prospectus captioned "PURCHASE
OF SHARES -- NAV PURCHASE OPTIONS" are hereby amended and restated with the
following:
(8) Trusts created under pension, profit sharing or other employee benefit
plans qualified under Section 401(a) of the Code, or custodial accounts
held by a bank created pursuant to Section 403(b) of the Code and
sponsored by non-profit organizations defined under Section 501(c)(3) of
the Code and assets held by an employer or trustee in connection with an
eligible deferred compensation plan under Section 457 of the Code. Such
plans will qualify for purchases at net asset value provided, for plans
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initially establishing accounts with the Distributor in the
Participating Funds after February 1, 1997, that (1) the initial amount
invested in the Participating Funds is at least $500,000 or (2) such
shares are purchased by an employer sponsored plan with more than 100
eligible employees. Such plans that have been established with a
Participating Fund or have received proposals from the Distributor prior
to February 1, 1997 based on net asset value purchase privileges
previously in effect will be qualified to purchase shares of the
Participating Funds at net asset value for accounts established on or
before May 1, 1997. Section 403(b) and similar accounts for which Van
Kampen American Capital Trust Company serves as custodian will not be
eligible for net asset value purchases based on the aggregate investment
made by the plan or the number of eligible employees, except under
certain uniform criteria established by the Distributor from time to
time. Prior to February 1, 1997, a commission will be paid to authorized
dealers who initiate and are responsible for such purchases within a
rolling twelve-month period as follows: 1.00% on sales to $5 million,
plus 0.50% on the next $5 million, plus 0.25% on the excess over $10
million. For purchases on February 1, 1997 and thereafter, a commission
will be paid as follows: 1.00% on sales to $2 million, plus 0.80% on the
next $1 million, plus 0.50% on the next $47 million, plus 0.25% on the
excess over $50 million.
