<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......... 15
Statement of Operations..................... 16
Statement of Changes in Net Assets.......... 17
Financial Highlights........................ 18
Notes to Financial Statements............... 21
</TABLE>
GMA SAR 8/95
<PAGE>
LETTER TO SHAREHOLDERS
DON G. POWELL AND DENNIS J. MCDONNELL
August 3, 1995
Dear Shareholder:
The first half of 1995 has been a positive one for most Americans investing
abroad. While not as strong as the U.S. market, many foreign bond and stock
markets have made attractive gains for the period ended June 30, 1995.
This 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 which includes a
well-rounded portfolio of domestic and foreign investments--can help increase
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 has slowed significantly this year. As a re-
sult, U.S. interest rates declined and the value of fixed-income investments
rose. For example, the yield on 30-year U.S. Treasury securities fell from 7.88
percent at the end of December to 6.62 percent at the end of June, while its
price appreciated 18 percent. Likewise, after struggling through most of 1994,
the U.S. stock market climbed through the first part of the year, with the Dow
Jones Industrial Average and the S&P 500 Index gaining nearly 19 percent.
Abroad, bond markets in a number of industrialized countries also rallied
during the first half of the year. Those countries regarded as being in the
U.S. dollar bloc performed well, particularly in Canada and New Zealand, where
both economies showed signs of moderating growth and a trend toward lower in-
terest rates. These markets are highly influenced by events in the United
States and have tended to mirror its economic trends. Among the dollar bloc
countries, New Zealand provided the strongest performance in dollar terms, with
a 12.8 percent return for the first half of 1995, according to the J.P. Morgan
Global Bond Market Index.
Among the mature European stock markets--such as Switzerland and the Nether-
lands--stocks on average have appreciated in dollar terms by 22.02 percent and
14.03 percent, respectively, during the same period, according to the Morgan
Stanley Capital International Switzerland and Netherlands Indexes. These gains
can be partially attributed to an increase in demand for higher investment
quality by investors during the start of the year, especially those seeking to
reallocate monies from Latin American countries to more developed markets.
Latin American markets suffered through the first three months of the year from
various currency and political problems, which began with Mexico's peso devalu-
ation in late December.
Several international currencies, including the Japanese yen and German mark,
strengthened substantially against the U.S. dollar over the last twelve months.
Their appreciation against the dollar has been positive for Americans investing
overseas, as it has resulted in
(Continued on page two)
1
<PAGE>
better overall returns due to substantial currency gains. The Japanese bond
market, for example, produced a 32.8 percent return, in dollar terms, for the
six-month period ended June 30, 1995, according to the J.P. Morgan Global Bond
Market Index. Nevertheless, the sharp increase in the strength of the yen and a
debt crisis in the Japanese bank sector have compounded Japan's domestic prob-
lems and led to further uncertainties about the government's ability to effec-
tively deal with a struggling economy.
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 the United States reversed monetary
course and lowered short-term interest rates on July 6. Several countries, in-
cluding Japan, France, and Canada, quickly followed the U.S. and lowered short-
term interest rates as well. We believe this reflects a global trend towards
slower economic growth and lower interest rates, as inflation fears continue to
subside around the world. With business activity in the U.S. and other indus-
trialized countries slowing, we look for Europe and developing markets to offer
the greatest growth opportunities.
Once again, we believe it is important to remember that financial markets
will inevitably experience highs and lows, but by maintaining a long-term in-
vestment perspective, it may allow you to ride the ups and downs of the markets
more easily as you pursue your investment goals.
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.
CORPORATE NEWS
Along with your Fund's shareholder report, we are pleased to introduce a new
shareholder publication called Your Portfolio. The purpose of this publication
is to provide you with additional information about your mutual fund invest-
ment, as well as offer helpful insights regarding long-term investment strate-
gies and trends in the marketplace. The publication will be mailed twice a year
with your June and December shareholder reports. This premier issue focuses on
our various shareholder services and privileges designed to make mutual fund
investing easier for you.
We appreciate your continued confidence in your investment with Van Kampen
American Capital, and we look forward to communicating with you again regarding
the performance of your Fund.
Sincerely,
/s/ Don G. Powell /s/ Dennis J. McDonnell
- ----------------- -----------------------
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 JUNE 30, 1995
AMERICAN CAPITAL GLOBAL MANAGED ASSETS FUND, INC.
<TABLE>
<CAPTION>
A SHARES B SHARES C SHARES
TOTAL RETURNS
<S> <C> <C> <C>
Six-month total return based on NAV/1/............... 7.03% 6.60% 6.58%
Six-month total return/2/............................ 1.93% 2.60% 5.58%
One-year total return/2/............................. 1.49% 1.51% 4.83%
Life-of-fund average annual total return/2/.......... 0.31% 0.33% 4.14%
Commencement Date.................................... 05/16/94 05/16/94 05/16/94
</TABLE>
/1/Assumes reinvestment of all distributions for the period and does not in-
clude 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 (4.75% for A
shares) or contingent deferred sales charge for early withdrawal (4% for B
shares and 1% for 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
AMERICAN CAPITAL GLOBAL MANAGED ASSETS FUND, INC.
The following is an interview with the management team of American Capital
Global Managed Assets Fund. The team is led by Jeff New and John Reynoldson of
Van Kampen American Capital (U.S. holdings), Alan Doyle and Peter Kysel of John
Govett & Co. Limited (international holdings), and Alan T. Sachtleben, Van
Kampen American Capital's executive vice president of equity investments.
Q. WHAT MARKET CONDITIONS HAD THE GREATEST IMPACT ON THE FUND'S PERFORMANCE
DURING THE SIX MONTHS ENDED JUNE 30, 1995?
A. Overall, the global economic environment remained broadly positive with
expanding business activity and subdued inflation in most developed coun-
tries.
The U.S. dollar fell against major currencies and economic problems in sev-
eral countries contributed to greater volatility in the financial markets. Also
during the period, Japanese markets suffered due to the Kobe earthquake, polit-
ical uncertainties, trade friction with the U.S. and a strong yen. All of these
factors negatively affected that country's economic activity and the profit-
ability of its companies.
The U.S. stock market outperformed many international markets, reflecting the
more advanced stage of its economic cycle and a generally positive environment
for corporate revenues and profits.
World bond markets rallied as it became clear that economic growth had stabi-
lized and interest rates had probably peaked. In fact, that rally continued
through the first half of 1995-- helping most bond markets to recover their
1994 losses.
Q. HOW DID YOU POSITION THE FUND IN RESPONSE TO THESE EVENTS?
A. We continued to seek opportunities in both the stock and bond markets. Our
major focus remained on the U.S. where the economic scenario--moderate
growth, lower inflation and declining interest rates--was generally positive for
its investment markets.
EQUITY INVESTMENTS: We maintained the strategy of investing in at least three
of the key equity markets (the United States, Japan and the United Kingdom), as
well as holding smaller positions throughout continental Europe and the Far
East. In an effort to help reduce volatility during the period, investments in
developed markets with stable currencies were emphasized. Exposure to Japan has
been gradually reduced in response to the worsening outlook for its corporate
sector.
In the U.S. we concentrated on economically-resilient companies--companies
where earnings have remained strong, regardless of economic ups and downs. We
also like the technology sector. "Tech" stocks should remain strong as many new
products--from personal computers to communication devices--are driving strong
demand.
BOND INVESTMENTS: The Fund's exposure has been largely concentrated on the
U.S. bond market, where we saw the best value. European bond markets played a
smaller role. There, the Fund's exposure has been increasingly concentrated in
Germany, whose bond market has been least affected by currency pressures within
the European Exchange Rate Mechanism. In terms of currency exposure, the Fund
has most recently maintained a heavy position in U.S. dollars as a defensive
measure against currency volatility.
4
<PAGE>
American Capital Q. HOW DID THE FUND PERFORM DURING THE SIX
MONTHS ENDED JUNE 30, 1995?
Global Managed A. During the six months ended June 30, 1995,
Assets Fund, Inc. the Fund (Class A shares) achieved a total
return at net asset value of 7.03 percent/1/. Dur-
ing the same period, the Morgan Stanley Capital
International World Index* had a total return of
8.21 percent. The J.P. Morgan Global Traded Gov-
ernment Index** achieved a total return of 15.90
percent for the reporting period. Indices do not
reflect any commissions or fees that would be paid
by an investor purchasing the securities they rep-
resent. (Please refer to the chart on page three
for additional Fund performance.)
- --------------------------
Top 5 Countries Repre-
sented
in the Portfolio
as of June 30, 1995
United States
United Kingdom
Japan
Sweden
Germany
- ---------------------------
Q. WHAT IS YOUR OUTLOOK FOR THE GLOBAL MARKET AND, MORE SPECIFICALLY, FOR
THE FUND?
A. A slowdown in the U.S. economy may lead to further gains in the U.S. bond
market. Providing there is relative currency stability, a further reduc-
tion in U.S. interest rates may spur an upswing in the economy later in the
year.
There are positive prospects for expansion in the international economies,
ultimately including the smaller and emerging markets. The positive economic
growth, with historically low rates of inflation in most developed countries
are expected to have positive influence on the world's stock markets.
Given this outlook, we will continue to seek capital appreciation consistent
with reasonable risk (attempting to keep volatility as low as possible),
through a well balanced portfolio of global stocks and bonds.
/s/ Alan T. Sachtleben /s/ Jeff D. New /s/ John R. Reynoldson
- --------------------- ------------------- ----------------------
Alan T. Sachtleben Jeff D. New John R. Reynoldson
Van Kampen American Van Kampen American Van Kampen American
Capital Capital Capital
Executive Vice Portfolio Manager Portfolio Manager
President
Equity Investments
/s/ Alan Doyle /s/ Peter Kysel
- -------------- ---------------
Alan Doyle Peter Kysel
John Govett & Co. John Govett & Co.
Limited Limited
Portfolio Manager Portfolio Manager
*An unmanaged index that is used as a benchmark for general global equity
funds.
**An unmanaged index of major foreign and U.S. Government bonds, weighted by
the total market value of each country's securities, and reflects variations
in currency value.
(Please see footnotes on page three)
5
<PAGE>
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Description Market Value
- --------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCK 64.4%
AUSTRALIA 0.6%
9,000 Advance Bank........................................ $ 3,134
4,000 Lend Lease Corp..................................... 51,116
20,000 Pioneer International, Ltd.......................... 49,751
6,000 Western Mining Corp................................. 33,049
--------------
TOTAL AUSTRALIA..................................... 137,050
--------------
BELGIUM 0.4%
2,100 GIB................................................. 99,663
--------------
BRAZIL 0.5%
5,300 Centrais Eletricas Brasileiras, ADR, Class B........ 72,875
5,000 Usiminas Usi Manufacturing, ADS..................... 56,250
--------------
TOTAL BRAZIL........................................ 129,125
--------------
CANADA 0.6%
2,000 Inco, Ltd........................................... 56,061
20,000 MTC Electronics Technologies, Ltd................... 37,500
1,300 Seagram Co., Ltd.................................... 44,367
--------------
TOTAL CANADA........................................ 137,928
--------------
FINLAND 0.6%
2,500 Kymmene Corp........................................ 77,850
*6,000 Nokian Tyres........................................ 50,574
--------------
TOTAL FINLAND....................................... 128,424
--------------
FRANCE 2.8%
700 Christian Dior...................................... 61,641
700 Cie De St. Gobain................................... 84,555
1,120 Credit Local De France.............................. 103,890
450 LVMH Moet Hennessy.................................. 80,978
280 Primagaz (Cie Gaz).................................. 48,770
*1,000 SGS Thomson Micro................................... 40,195
770 Societe Generale.................................... 89,995
600 Union Assur Federal................................. 73,836
3,100 Union Assur Paris................................... 81,281
--------------
TOTAL FRANCE........................................ 665,141
--------------
GERMANY 3.0%
400 Bayer, AG........................................... 99,501
110 Ckag Colonia Konzern................................ 71,032
1,700 Deutsche Bank....................................... 82,609
520 Preussag............................................ 155,297
130 Siemens............................................. 64,535
*500 Thyssen............................................. 93,101
200 Veba................................................ 78,603
100 Wella............................................... 79,543
--------------
TOTAL GERMANY....................................... 724,221
--------------
</TABLE>
See Notes to Financial Statements
6
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Description Market Value
- --------------------------------------------------------------------------------
<C> <S> <C>
HOLLAND 0.1%
200 Royal Dutch Petroleum Co., ADR...................... $ 24,375
--------------
HONG KONG 2.2%
10,000 China Light & Power................................. 51,436
15,000 Hong Kong Electric.................................. 50,984
32,000 Hong Kong Land Holding.............................. 58,240
4,800 HSBC Holdings....................................... 61,568
12,000 Hutchison Whampoa................................... 58,001
9,000 Jardine Matheson.................................... 66,150
*280,000 Jilin Chemical, Industries.......................... 55,726
8,000 Sun Hung Kai Properties............................. 59,190
10,000 Swire Pacific....................................... 76,249
--------------
TOTAL HONG KONG..................................... 537,544
--------------
IRELAND 0.1%
300 Elan, PLC, ADR...................................... 12,225
--------------
ISRAEL 0.2%
3,500 ECI Telecom Limited................................. 47,906
--------------
ITALY 1.2%
13,400 Burgo (Cartiere).................................... 88,446
14,250 Fiat................................................ 50,251
34,200 Telecom Italia...................................... 92,698
*8,000 Brembo.............................................. 55,248
--------------
TOTAL ITALY......................................... 286,643
--------------
JAPAN 9.1%
5,000 Amada, Co........................................... 42,770
4,000 Bank of Tokyo....................................... 64,185
*8,000 Dainippon Screen Manufacturing Co................... 53,802
*15,000 Denki Kagaku Kogyo.................................. 49,909
7 East Japan Railway Co............................... 35,927
5,000 Fujitsu............................................. 49,850
13,000 Hitachi............................................. 129,609
*5,000 Japan Airlines Co................................... 33,213
4,000 Komatsu............................................. 30,535
10,000 Kumagai Gumi Co..................................... 41,885
1,000 Kyocera Corp........................................ 82,355
10,000 Marubeni Corp....................................... 50,852
2,000 Maruichi Steel Tube................................. 38,936
5,000 Matsushita Electric Industrial Co................... 77,872
11,000 Mitsubishi Construction............................. 54,510
7,000 Mitsubishi Heavy Industries......................... 47,572
10,000 NEC Corp. .......................................... 109,610
7,000 New Oji Paper Co. .................................. 67,312
</TABLE>
See Notes to Financial Statements
7
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Description Market Value
- --------------------------------------------------------------------------------
<C> <S> <C>
3,000 Nippon Hodo Corp. .................................. $ 52,740
10 Nippon Telephone & Telegraph Corp................... 83,771
3,000 Nishimatsu Construction............................. 35,396
5,000 Nomura Securities................................... 87,310
7,000 Omron Corp. ........................................ 133,797
5,000 Onward Kashiyama Co. ............................... 67,843
1,000 Rohm Co. ........................................... 51,678
3,000 Sanwa Bank.......................................... 56,634
15,000 Sanyo Electric Co. ................................. 73,801
5,000 Sumitomo Corp....................................... 45,543
14,000 Sumitomo Osaka Chemical............................. 51,372
9,000 Tadano.............................................. 66,793
4,000 Tokio Marine & Fire Insurance Co.................... 45,873
2,000 Tokyo Electron...................................... 68,433
7,000 Tokyu Corp. ........................................ 44,930
5,000 Toshiba Corp........................................ 31,679
*2,000 Toyota Motor Corp. ................................. 39,644
3,000 Yamanouchi Pharmacy................................. 67,607
--------------
TOTAL JAPAN......................................... 2,165,548
--------------
MALAYSIA 1.0%
10,000 Commerce Asset Holding.............................. 51,272
*26,000 Malaysian Pacific Industries........................ 65,053
20,000 Resorts World....................................... 117,309
--------------
TOTAL MALAYSIA...................................... 233,634
--------------
NETHERLANDS 2.9%
1,530 ABN Amro Holdings................................... 59,047
8,000 Elsevier............................................ 94,482
1,732 International Nederlanden Group..................... 95,794
1,600 Kon PTT Nederland................................... 57,515
2,000 Philips Electronic.................................. 84,672
2,000 Philips Electronics, NV, ADR........................ 85,500
450 Royal Dutch Petroleum Co. .......................... 54,947
3,900 Stork............................................... 105,460
540 Unilever............................................ 70,258
--------------
TOTAL NETHERLANDS................................... 707,675
--------------
NORWAY 0.7%
1,600 Kvaerner............................................ 70,113
*13,000 Uni Storebrand...................................... 58,443
2,000 Unitor.............................................. 34,732
--------------
TOTAL NORWAY........................................ 163,288
--------------
PORTUGAL 0.3%
*3,000 Investec Consultant................................. 56,596
3,500 Portucel Industrial SA, ADS......................... 24,938
--------------
TOTAL PORTUGAL...................................... 81,534
--------------
</TABLE>
See Notes to Financial Statements
8
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Description Market Value
- --------------------------------------------------------------------------------
<C> <S> <C>
SINGAPORE 0.8%
6,000 Fraser & Neave...................................... $ 69,123
10,000 Overseas Union Bank................................. 62,970
8,000 Sembawang Corp. .................................... 48,658
--------------
TOTAL SINGAPORE..................................... 180,751
--------------
SPAIN 0.3%
1,900 Tabacalera, SA...................................... 71,059
--------------
SWEDEN 4.0%
2,000 Astra............................................... 60,238
13,000 Atlas Copco......................................... 182,366
1,500 Electrolux.......................................... 68,284
6,000 Ericsson (LM) Telephone............................. 119,652
3,000 Hoganas............................................. 58,588
12,500 SKF................................................. 252,713
3,000 Stadshypotek........................................ 44,560
4,000 Stora Kopparbergs................................... 54,187
4,100 Svedala Industrial.................................. 110,520
--------------
TOTAL SWEDEN........................................ 951,108
--------------
SWITZERLAND 1.5%
120 Ciba Geigy.......................................... 87,955
875 CS Holdings......................................... 80,167
80 Nestle.............................................. 83,300
17 Roche Holdings...................................... 109,544
--------------
TOTAL SWITZERLAND................................... 360,966
--------------
THAILAND 0.7%
9,000 National Finance & Securities....................... 44,116
1,000 Siam Cement Co...................................... 63,844
*17,000 Telecomasia......................................... 59,915
--------------
TOTAL THAILAND...................................... 167,875
--------------
TURKEY 0.4%
*200,000 Ardem Pisirici Ve................................... 70,112
11,000 Cimentas............................................ 8,086
45,000 KOC Yatirim......................................... 14,757
--------------
TOTAL TURKEY........................................ 92,955
--------------
UNITED KINGDOM 9.9%
17,000 BAA................................................. 133,442
5,500 BOC Group........................................... 70,248
250 British Petroleum Co., PLC, ADR..................... 21,406
12,000 British Telecom..................................... 74,821
60,000 BTR................................................. 304,915
5,000 De La Rue........................................... 74,439
18,000 Fairey Group........................................ 128,265
20,000 Granada Group....................................... 194,051
10,294 Inchcape............................................ 48,466
</TABLE>
See Notes to Financial Statements
9
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Description Market Value
- --------------------------------------------------------------------------------
<C> <S> <C>
12,000 J. Sainsbury........................................ $ 84,269
4,000 London Electricity.................................. 40,846
8,000 Marks & Spencer..................................... 51,408
10,000 National Westminster................................ 86,926
30,000 Next................................................ 162,955
20,000 Reuters Holdings.................................... 166,534
7,000 Severn Trent........................................ 60,347
3,000 Shell Transportation & Trading...................... 35,860
5,000 Smithkline Beecham.................................. 45,252
4,000 Southern Electric................................... 40,814
15,000 Storehouse.......................................... 64,180
15,000 Tesco............................................... 69,190
8,000 TSB Group........................................... 30,730
5,000 Unilever............................................ 101,201
75,000 Vodafone Group...................................... 278,551
--------------
TOTAL UNITED KINGDOM................................ 2,369,116
--------------
UNITED STATES 20.5%
500 Abbott Laboratories, Inc............................ 20,250
*600 ALC Communications Corp............................. 27,075
250 Allied Signal, Inc.................................. 11,125
1,100 American General Corp............................... 37,125
500 American Home Products Corp......................... 38,688
450 American International Group, Inc................... 51,300
*1,000 American Radio System Corp., Class A................ 22,750
*600 Amgen, Inc.......................................... 48,262
*400 AMR Corp............................................ 29,850
700 Applied Materials, Inc.............................. 60,638
400 Atmel Corp.......................................... 22,150
1,200 Baker Hughes, Inc................................... 24,600
700 BankAmerica Corp.................................... 36,837
1,100 Bank of Boston Corp................................. 41,250
400 Bank New York, Inc.................................. 16,150
700 Baxter International, Inc........................... 25,462
500 Baybanks, Inc....................................... 39,625
1,000 Bear Stearns Companies, Inc......................... 21,375
800 Bemis, Inc.......................................... 20,800
*700 BMC Software, Inc................................... 54,075
800 Bowater, Inc........................................ 35,900
950 Browning-Ferris Industries, Inc..................... 34,319
200 Capital Cities ABC, Inc............................. 21,600
*1,100 Cellular Communications, Inc........................ 50,050
500 Champion International Corp......................... 26,062
</TABLE>
See Notes to Financial Statements
10
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Description Market Value
- --------------------------------------------------------------------------------
<C> <S> <C>
1,000 Chemical Banking Corp................................ $ 47,250
*2,100 Chips & Technologies, Inc............................ 27,562
*900 Cisco Systems, Inc................................... 45,506
*400 Citicasters, Inc..................................... 11,000
900 Citicorp............................................. 52,087
300 Clorox Co............................................ 19,575
600 Colgate-Palmolive Co................................. 43,875
750 Columbia/HCA Healthcare Corp......................... 32,437
*1,700 Community Health System, Inc......................... 57,587
*900 Compaq Computer Corp................................. 40,837
750 ConAgra, Inc......................................... 26,156
*200 Cordis Corp.......................................... 13,350
*1,200 Cox Communications, Inc., Class A.................... 23,250
200 CPC International, Inc............................... 12,350
900 Cypress Semiconductor Corp........................... 36,450
*300 Dell Computer Corp................................... 18,037
900 Disney (Walt) Co..................................... 50,062
1,312 Dollar General Corp.................................. 41,492
*600 DSC Communications Corp.............................. 27,900
400 DuPont (E.I.) de Nemours & Co., Inc.................. 27,500
*1,300 Eckerd (Jack) Corp................................... 41,600
*700 Emmis Broadcasting Corp., Class A.................... 19,075
*700 Evergreen Media...................................... 18,200
500 Exxon Corp........................................... 35,312
1,000 Federal Home Loan Mortgage Corp...................... 68,750
650 Federal National Mortgage Association................ 61,344
400 First Chicago Corp................................... 23,950
600 FPL Group, Inc....................................... 23,175
*1,700 FTP Software, Inc.................................... 51,000
*600 Fusion Systems Corp.................................. 20,550
400 Genentech, Inc....................................... 19,450
600 General Electric Co.................................. 33,825
700 General Instrument Corp.............................. 26,862
400 Grace (W.R.) & Co.................................... 24,550
700 Green Tree Financial Corp............................ 31,062
600 Greenfield Industries, Inc........................... 17,400
*600 Healthcare Compare Corp.............................. 18,000
*600 Health Management Associates, Inc., Class A.......... 17,550
525 Healthcare & Retirement Corp......................... 15,356
400 Hercules, Inc........................................ 19,500
800 Illinois Central Corp................................ 27,600
</TABLE>
See Notes to Financial Statements
11
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Description Market Value
- --------------------------------------------------------------------------------
<C> <S> <C>
500 Illinois Tool Works, Inc............................. $ 27,500
*790 Integrated Device Technology......................... 36,537
600 Integrated Health Services, Inc...................... 18,000
2,200 Intel Corp........................................... 139,287
600 International Business Machines Corp................. 57,600
600 International Paper Co............................... 51,450
1,000 International Rectifier Corp......................... 32,500
1,100 James River Corp..................................... 30,388
550 Johnson & Johnson.................................... 37,194
800 Kennametal, Inc...................................... 28,200
*200 KLA Instruments Corp................................. 15,450
*900 Kroger Co............................................ 24,187
*700 Lam Research Corp.................................... 44,800
1,000 Limited, Inc......................................... 22,000
*1,250 Lincare Holdings, Inc................................ 33,203
300 Linear Technology Corp............................... 19,800
326 Lockheed Martin Corp................................. 20,579
*1,100 LSI Logic Corp....................................... 43,038
950 Marriot International, Inc........................... 34,081
800 McDonald's Corp...................................... 31,300
900 MCI Communications Corp., Inc........................ 19,764
400 Medtronic, Inc....................................... 30,850
*1,100 Megatest Corp........................................ 14,575
1,100 Merck & Co., Inc..................................... 53,900
1,000 Micron Technology, Inc............................... 54,875
*200 Microsoft Corp....................................... 18,075
500 Midlantic Corp....................................... 20,000
1,300 Mirage Resorts, Inc.................................. 39,813
250 Mobil Corp........................................... 24,000
1,400 Mylan Laboratories, Inc.............................. 43,050
800 Nabisco Holdings Corp., Class A...................... 21,600
*1,400 National Semiconductor Corp.......................... 38,850
*600 Nine West Group, Inc................................. 21,900
700 NIPSCO Industries, Inc............................... 23,800
650 Omnicom Group, Inc................................... 39,406
*750 Oracle System Corp................................... 28,969
900 Pacificorp........................................... 16,875
2,000 Panhandle Eastern Corp............................... 48,750
1,200 PepsiCo, Inc......................................... 54,750
1,300 Phillip Morris Companies, Inc........................ 96,688
700 Pinnacle West Cap Corp............................... 17,150
</TABLE>
See Notes to Financial Statements
12
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Description Market Value
- --------------------------------------------------------------------------------
<C> <S> <C>
1,300 Praxair, Inc........................................ $ 32,500
600 Procter & Gamble Co................................. 43,125
600 Providian Corp...................................... 21,750
700 Reliastar Financial Corp............................ 26,775
*1,000 Safeway, Inc........................................ 37,375
1,395 Samsung Electric Co................................. 73,586
500 Sara Lee Corp....................................... 14,250
1,300 Schering-Plough Corp................................ 57,363
400 Schlumberger, Ltd................................... 24,850
600 Scott Paper Co...................................... 29,700
400 Sears Roebuck & Co.................................. 23,950
2,500 Service Corp. International......................... 79,063
400 Sigma-Aldrich Corp.................................. 19,650
550 Silicon Graphics, Inc............................... 21,931
*1,500 Smith International, Inc............................ 25,125
*1,300 Sun Healthcare Group, Inc........................... 20,475
300 Sun Microsystems, Inc............................... 14,550
*1,500 Symantec Corp....................................... 43,313
450 Talbots, Inc........................................ 17,888
*1,600 Tele Communications, Inc., Class A.................. 37,500
*400 Tellabs, Inc........................................ 19,250
600 Teradyne Technologies, Inc.......................... 39,225
500 Texas Instruments, Inc.............................. 66,938
100 Thermo Fibertek, Inc................................ 1,988
*500 3COM Corp........................................... 33,500
1,200 TIG Holdings, Inc................................... 27,600
500 Time Warner, Inc.................................... 20,563
*1,300 Trump Hotels & Casino Resorts....................... 17,388
1,100 United Waste Systems, Inc........................... 39,600
1,300 USX Marathon Group.................................. 25,675
450 Varity Corp......................................... 19,800
*700 Viacom, Inc......................................... 32,463
*3,100 VLSI Technology, Inc................................ 93,388
300 Walgreen Co......................................... 15,038
2,900 Wal-Mart Stores, Inc................................ 77,575
700 Watson Pharmaceuticals, Inc......................... 27,300
75 Wells Fargo & Co.................................... 13,519
1,300 Whitman Corp........................................ 25,188
950 WMX Technologies, Inc............................... 26,956
*2,000 Worldcom, Inc....................................... 54,000
--------------
TOTAL UNITED STATES................................. 4,902,099
--------------
TOTAL COMMON STOCK (Cost $14,139,216)............... 15,377,853
--------------
</TABLE>
See Notes to Financial Statements
13
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Description Market Value
- -------------------------------------------------------------------------------
<C> <S> <C>
UNITED STATES TREASURY NOTES 27.0%
$ 700,000 5.75%, 8/15/03................................... $ 679,553
1,685,000 7.5%, 2/15/05.................................... 1,836,397
**1,900,000 8.00%, 10/15/96.................................. 1,951,661
1,985,000 8.50%, 8/15/95................................... 1,992,146
--------------
TOTAL UNITED STATES TREASURY NOTES
(Cost $6,386,806)................................ 6,459,757
--------------
CORPORATE OBLIGATIONS 0.7%
30,000 Acer, Inc. 4.0%, 6/10/01......................... 88,425
50,000 United Micro Electric, 1.25%, 6/8/04............. 85,375
--------------
TOTAL CORPORATE OBLIGATIONS (Cost $164,375)...... 173,800
--------------
REPURCHASE AGREEMENT 2.7%
640,000 Swiss Bank Corp, Government Securities, Inc.,
dated 6/30/95, 6.125%, due 7/3/95 (collateralized
by U. S. Government obligations in a pooled cash
account) repurchase proceeds $640,327 (Cost
$640,000)........................................ 640,000
--------------
TOTAL INVESTMENTS (Cost $21,330,397) 94.8%.................... 22,651,410
OTHER ASSETS AND LIABILITIES, NET 5.2%........................ 1,248,542
--------------
NET ASSETS 100%............................................... $ 23,899,952
--------------
</TABLE>
*Non-income producing security.
**Securities with a market value of $1.9 million were placed as collateral for
forward purchase commitments (Note 2D).
See Notes to Financial Statements
14
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
ASSETS
<TABLE>
<S> <C>
Investment, at market value (Cost $21,330,397)................. $ 22,651,410
Foreign currency, at market value (Cost $462,707).............. 464,050
Cash........................................................... 1,436
Receivable for investments sold................................ 2,006,952
Dividends and interest receivable.............................. 215,411
Receivable for Fund shares sold................................ 11,035
Other assets and receivables................................... 14,811
-------------
Total Assets.................................................. 25,365,105
-------------
LIABILITIES
Payable for investments purchased.............................. 1,372,078
Payable for Fund shares purchased.............................. 28,960
Net unrealized depreciation of forward commitments and currency
exchange contracts............................................. 28,833
Due to Distributor............................................. 15,094
Deferred Directors' compensation............................... 1,310
Accrued expenses and other liabilities......................... 18,878
-------------
Total Liabilities............................................. 1,465,153
-------------
NET ASSETS, equivalent to $9.78 per share for Class A, $9.76
per share for Class B and $9.79 per share for Class C shares.. $ 23,899,952
-------------
NET ASSETS WERE COMPRISED OF:
Capital stock, at par; 1,432,477 Class A, 846,405 Class B and
167,010 Class C shares outstanding............................ $ 24,459
Capital surplus................................................ 23,021,033
Accumulated net realized loss on securities.................... (429,055)
Unrealized appreciation (depreciation) of securities
Investments................................................... 1,321,013
Forward commitments........................................... (12,934)
Offsetting forward commitments................................ (37,086)
Foreign currency.............................................. 1,343
Forward currency exchange contracts........................... (15,899)
Other foreign denominated assets and liabilities.............. 1,167
Undistributed net investment income............................ 25,911
-------------
NET ASSETS..................................................... $ 23,899,952
-------------
</TABLE>
See Notes to Financial Statements
15
<PAGE>
STATEMENT OF OPERATIONS
Six Months Ended June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest.................................................... $ 303,645
Dividends (net of $20,512 of foreign taxes withheld at
source)..................................................... 161,441
----------------
Investment income.......................................... 465,086
----------------
EXPENSES
Management fees............................................. 109,687
Shareholder service agent's expenses........................ 77,298
Accounting services......................................... 14,500
Service fees--Class A....................................... 4,565
Distribution and service fees--Class B...................... 38,786
Distribution and service fees--Class C...................... 7,525
Directors' fees and expenses................................ 6,209
Audit fees.................................................. 26,975
Custodian fees.............................................. 80,030
Legal fees.................................................. 2,790
Reports to shareholders..................................... 16,690
Registration and filing fees................................ 86,736
Organization expenses....................................... 1,631
Miscellaneous............................................... 126
Expense reimbursement--see Note 3........................... (123,356)
----------------
Total expenses............................................. 350,192
----------------
NET INVESTMENT INCOME...................................... 114,894
----------------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES
Net realized gain (loss) on securities
Investments and forward commitments........................ (423,194)
Futures contracts.......................................... (4,525)
Foreign currency........................................... 11,429
Forward currency exchange contracts........................ 114,594
Net unrealized appreciation (depreciation) of securities
Investments................................................ 1,715,170
Forward commitments........................................ 11,509
Offsetting forward commitments............................. (37,086)
Foreign currency........................................... 4,243
Forward currency exchange contracts........................ (51,943)
Futures contracts.......................................... 36,930
Other foreign denominated assets and liabilities........... 1,255
----------------
NET REALIZED AND UNREALIZED GAIN ON SECURITIES............. 1,378,382
----------------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........... $ 1,493,276
----------------
</TABLE>
See Notes to Financial Statements
16
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months May 16, 1994*
Ended through
June 30, 1995 December 31, 1994
- --------------------------------------------------------------------------------
<S> <C> <C>
NET ASSETS, beginning of period.............. $20,151,878 $ 101,000
----------- -----------
Operations
Net investment income....................... 114,894 111,532
Net realized loss on securities............. (301,696) (69,995)
Net unrealized depreciation of securities
during the period.......................... 1,680,078 (422,474)
----------- -----------
Increase (decrease) in net assets resulting
from operations............................. 1,493,276 (380,937)
----------- -----------
Distributions to shareholders from
Net investment income
Class A..................................... (76,680) (83,040)
Class B..................................... (12,600) (18,953)
Class C..................................... (2,629) (4,131)
----------- -----------
(91,909) (106,124)
----------- -----------
Book-basis net realized gain on securities
(Note 21)
Class A..................................... -- (34,466)
Class B..................................... -- (21,661)
Class C..................................... -- (3,719)
----------- -----------
-- (59,846)
----------- -----------
Total distributions......................... (91,909) (165,970)
----------- -----------
Capital transactions
Proceeds from shares sold
Class A..................................... 1,932,454 11,810,850
Class B..................................... 1,594,048 8,030,788
Class C..................................... 421,380 1,340,315
----------- -----------
3,947,882 21,181,953
----------- -----------
Proceeds from shares issued for
distributions reinvested
Class A..................................... 75,669 116,609
Class B..................................... 11,447 35,987
Class C..................................... 2,539 7,489
----------- -----------
89,655 160,085
----------- -----------
Cost of shares redeemed
Class A..................................... (359,267) (174,627)
Class B..................................... (1,196,385) (501,046)
Class C..................................... (135,178) (68,580)
----------- -----------
(1,690,830) (744,253)
----------- -----------
Increase in net assets resulting from capital
transactions................................. 2,346,707 20,597,785
----------- -----------
INCREASE IN NET ASSETS....................... 3,748,074 20,050,878
----------- -----------
NET ASSETS, end of period.................... $23,899,952 $20,151,878
----------- -----------
</TABLE>
*Commencement of operations.
See Notes to Financial Statements
17
<PAGE>
FINANCIAL HIGHLIGHTS
Selected data for a share of capital stock outstanding throughout the periods
indicated (Unaudited).
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A(/3/)
--------------------------------
Six Months May 16, 1994(/1/)
Ended through
June 30, 1995 December 31, 1994
- --------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
<S> <C> <C>
Net asset value, beginning of period.... $9.19 $9.44
----- -------
Income from investment operations
Investment income...................... .20 .28
Expenses............................... (.13) (.18)
----- -------
Net investment income................... .07 .10
Net realized and unrealized gain or loss
on securities........................... .575 (.2475)
----- -------
Total from investment operations........ .645 (.1475)
----- -------
Less distributions from
Net investment income.................. (.055) (.075)
Excess of book-basis net realized gains
on securities (Note 2I)................ -- (.0275)
----- -------
Total distributions..................... (.055) (.1025)
----- -------
Net asset value, end of period.......... $9.78 $9.19
----- -------
TOTAL RETURN (/2/)...................... 7.03% (1.57%)(/4/)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (millions).... $14.0 $11.5
Average net assets (millions)........... $12.7 $10.1
Ratios to average net assets
(annualized)
Expenses............................... 2.80% 2.75%
Expenses, without expense
reimbursement.......................... 3.93% 2.76%
Net investment income.................. 1.44% 1.54%
Net investment income, without expense
reimbursement.......................... .32% 1.53%
Portfolio turnover rate................. 70% 50%
</TABLE>
(1)Commencement of operations.
(2)Total returns have not been annualized. Total return does not consider the
effect of sales charges.
(3)Based on average month-end shares outstanding.
(4)The contract with the current subadviser became effective December 21, 1994.
See Notes to Financial Statements
18
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
Selected data for a share of capital stock outstanding throughout the periods
indicated (Unaudited).
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class B(/3/)
--------------------------------
Six Months May 16, 1994(/1/)
Ended through
June 30, 1995 December 31, 1994
- --------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
<S> <C> <C>
Net asset value, beginning of period.... $9.17 $9.44
----- -------
Income from investment operations
Investment income...................... .20 .26
Expenses............................... (.18) (.25)
----- -------
Net investment income................... .02 .01
Net realized and unrealized gain or loss
on securities........................... .585 (.2065)
----- -------
Total from investment operations........ .605 (.1965)
----- -------
Less distributions from
Net investment income.................. (.015) (.046)
Excess of book-basis net realized gains
on securities (Note 21)................ -- (.0275)
----- -------
Total distributions..................... (.015) (.0735)
----- -------
Net asset value, end of period.......... $9.76 $9.17
----- -------
TOTAL RETURN (/2/)...................... 6.60% (2.09%)(/4/)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (millions).... $8.3 $7.4
Average net assets (millions)........... $7.8 $4.6
Ratios to average net assets
(annualized)
Expenses............................... 3.73% 3.92%
Expenses, without expense
reimbursement.......................... 4.86% 3.93%
Net investment income.................. .49% .13%
Net investment income (loss), without
expense reimbursement.................. (.63%) .12%
Portfolio turnover rate................. 70% 50%
</TABLE>
(1)Commencement of operations.
(2)Total returns have not been annualized. Total return does not consider the
effect of sales charges.
(3)Based on average month-end shares outstanding.
(4)The contract with the current subadviser became effective December 21, 1994.
See Notes to Financial Statements
19
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
Selected data for a share of capital stock outstanding throughout the periods
indicated (Unaudited).
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class C(/3/)
--------------------------------
Six Months May 16, 1994(/1/)
Ended through
June 30, 1995 December 31, 1994
- --------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
<S> <C> <C>
Net asset value, beginning of period.... $9.20 $9.44
----- -------
Income from investment operations
Investment income...................... .20 .27
Expenses............................... (.17) (.22)
----- -------
Net investment income................... .03 .05
Net realized and unrealized gain or loss
on securities........................... .575 (.2165)
----- -------
Total from investment operations........ .605 (.1665)
----- -------
Less distributions from
Net investment income.................. (.015) (.046)
Excess of book-basis net realized gains
on securities (Note 21)................ -- (.0275)
----- -------
Total distributions..................... (.015) (.0735)
----- -------
Net asset value, end of period.......... $9.79 $9.20
----- -------
TOTAL RETURN (/2/)...................... 6.58% (1.77%)(/4/)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (millions).... $1.6 $1.3
Average net assets (millions)........... $1.5 $1.0
Ratios to average net assets
(annualized)
Expenses............................... 3.66% 3.35%
Expenses, without expense
reimbursement.......................... 4.79% 3.38%
Net investment income.................. .58% .80%
Net investment income (loss), without
expense reimbursement.................. (.55%) .78%
Portfolio turnover rate................. 70% 50%
</TABLE>
(1)Commencement of operations.
(2)Total returns have not been annualized. Total return does not consider the
effect of sales charges.
(3)Based on average month-end shares outstanding.
(4)The contract with the current subadviser became effective December 21, 1994.
See Notes to Financial Statements
20
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
- --------------------------------------------------------------------------------
NOTE 1--ORGANIZATION
American Capital Global Managed Assets Fund, Inc. (the "Fund") is registered
under the Investment Company Act of 1940, as amended and was organized as an
open-end, diversified management investment company in Maryland on November 24,
1993. The Fund's investment manager, Van Kampen American Capital Asset Manage-
ment, Inc., (the "Adviser") contributed the initial capital of $101,000 on May
4, 1994. The Fund began offering shares on May 16, 1994.
NOTE 2--SIGNIFICANT ACCOUNTING POLICIES
The investment objective of the Fund is to seek total return through a managed
balance of foreign and domestic equity and debt securities. Investments in for-
eign securities involve certain risks not ordinarily associated with invest-
ments in securities of domestic issuers, including fluctuations in foreign
exchange rates, future political and economical developments, and the possible
imposition of exchange controls or other foreign governmental laws or restric-
tions. The following is a summary of significant accounting policies consist-
ently 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. Futures contracts are valued at the last sale price, or if no
sales are reported, at the mean between the bid and asked prices. United States
government obligations are valued at the mean between the last reported bid and
ask prices. Securities for which market quotations are not readily available
are valued at fair value under a method approved by the Board of Directors.
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. 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
21
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(Unaudited)
- -------------------------------------------------------------------------------
gain and loss on foreign currency includes the net realized amount from the
sale of currency and the amount realized between trade date and settlement
date on security transactions.
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
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.
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 commitments 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 4--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 and sale commitments
which security settlement is not in-
22
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(Unaudited)
- -------------------------------------------------------------------------------
tended by the Fund, changes in the value of the commitment are recognized by
marking the commitment 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 commitment, the effect of which is to extend the settlement date.
In addition, the Fund may occasionally close such forward commitments prior to
delivery. Gains and losses are realized upon the ultimate closing or cash set-
tlement 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 the Adviser, the daily aggregate of which is invested in repurchase agree-
ments. Repurchase agreements are collateralized by the underlying debt securi-
ty. 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 required 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 intends to elect to be taxed as a "regulated investment compa-
ny" under 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, if any, expire or are offset by net realized capital gains.
Approximately $118,000 in post October losses are being deferred for tax
purposes to the 1995 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. Interest income is accrued daily.
Under the applicable foreign tax laws, a tax may be imposed on interest,
dividends and realized gains generated from foreign investments. Such taxes
are generally reflected on the Statement of Operations as a reduction of the
related income or gains.
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 issues discounts on debt securities purchased are amortized over the life
of the security. Premiums on debt
23
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(Unaudited)
- -------------------------------------------------------------------------------
securities are not amortized. Market discounts are recognized at the time of
sale as realized gains for book purposes and ordinary income for tax purposes.
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. ORGANIZATION COSTS-Organization expenses of approximately $15,000 were de-
ferred and are being amortized over a five year period ending May, 1999.
NOTE 3--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 1.00%. The Adviser pays 50% of its management fee to the Subadviser.
Under the terms of the advisory agreement, if the total ordinary business
expenses of the Fund, exclusive of taxes, interest and distribution plans, ex-
ceed the most restrictive expense limitation applicable in the states where
the Fund's shares are qualified for sale, the Adviser will reimburse the Fund
for the excess. Such reimbursement shall be made monthly. The most 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.
ACCESS Investor Services, Inc., an affiliate of the Adviser, serves as
shareholder service agent of the Fund. These services are provided at cost
plus a profit. For the period, the fees for such services aggregated $67,382.
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 $9,741 and $5,637, 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-
ices fees incurred. Class B and Class C shares pay an additional fee of up to
.75% per annum of their average daily net
24
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(Unaudited)
- -------------------------------------------------------------------------------
assets to reimburse the Distributor for its distribution expenses. Actual dis-
tribution 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 reimbursed expenses incurred by the Distributor under the
Class B and Class C plans aggregated approximately $373,000 and $27,000, re-
spectively, and may be carried forward and reimbursed through either the col-
lection 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 director of the Fund.
At the end of the period, the Adviser owned approximately 68% of Class A, 6%
of Class B and 32% of Class C outstanding shares.
Certain officers and directors of the Fund are officers and directors of the
Adviser, the Distributor, the Retail Dealer and the shareholder service agent.
NOTE 4--INVESTMENT ACTIVITY
During the period, the cost of purchases and proceeds from sales of invest-
ments, excluding short-term investments and forward commitments, were
$22,011,410 and $13,661,730, respectively.
For federal income tax purposes, the identified cost of investments and for-
eign currency at the end of the period was $21,801,980. Net unrealized appre-
ciation aggregated $1,313,480, gross unrealized appreciation aggregated
$1,778,950 and gross unrealized depreciation aggregated $465,470.
At the end of the period, the Fund held the following forward purchase com-
mitments, offsetting forward commitments, and forward currency exchange con-
tracts:
FORWARD PURCHASE COMMITMENTS
<TABLE>
<CAPTION>
Unrealized
Description Depreciation
- -------------------------------------------------------------------------------
<C> <S> <C>
GERMANY (Treuhandanstalt)
DM 1,000,000 6.75%, 5/13/04, settlement 11/95................. $ 2,957
800,000 6.75%, 5/13/04, settlement 10/95................. 1,944
SWEDEN (Kingdom of)
Skr 2,100,000 6.0%, 2/9/05, settlement 9/95.................... 6,410
UNITED STATES
$ 208,000 FHLMC, settlement 8/95........................... 747
208,000 GNMA, settlement 9/95............................ 876
-------
Total Forward Purchase Commitments (obligation
$1,906,558).................................... $12,934
-------
</TABLE>
25
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(Unaudited)
- -------------------------------------------------------------------------------
OFFSETTING FORWARD COMMITMENTS
<TABLE>
<CAPTION>
Principal
Amount U.S. U.S.
(000) Dollar Dollar Net Unrealized
(Local Settlement Value Value Appreciation
Currency) Security Date Payable Receivable (Depreciation)
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
GERMANY
Treuhandanstalt, 6.75%,
DM 1,000 5/15/04................. 07/03/95 $ 691,500 $ 718,400 $(34,593)
Treuhandanstalt, 6.75%,
840 5/15/04................. 07/03/95 582,651 604,403 (2,493)
---------- ---------- --------
$1,274,151 $1,322,803 $(37,086)
---------- ---------- --------
</TABLE>
FORWARD CURRENCY EXCHANGE CONTRACTS
<TABLE>
<CAPTION>
U.S. Unrealized
Settlement Dollar Appreciation
Currency Date Value (Depreciation)
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
FRENCH FRANC
2,482,750 (payable)..................... 07/03/95 $ 511,726 $(11,726)
GERMAN DEUTSCHE MARK
180,729 (receivable).................... 10/06/95 131,175 2,175
180,781 (receivable).................... 10/06/95 131,212 2,212
536,639 (receivable).................... 10/26/95 389,759 2,574
JAPANESE YEN
40,488,105 (receivable)................. 08/10/95 480,400 (16,600)
10,708,290 (receivable)................. 10/06/95 127,977 (1,023)
10,681,200 (receivable)................. 10/06/95 127,653 (1,346)
24,825,000 (receivable)................. 10/16/95 297,083 (2,917)
49,128,000 (payable).................... 11/02/95 589,248 10,752
---------- --------
$2,786,233 $(15,899)
---------- --------
</TABLE>
NOTE 5--DIRECTOR COMPENSATION
Fund directors who are not affiliated with the Adviser are compensated by the
Fund at the annual rate of $720 plus a fee of $20 per day for Board and Com-
mittee meetings attended. The Chairman receives additional fees from the Fund
at an annual rate of $270. During the period, such fees aggregated $4,090.
The directors 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 director 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.
26
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(Unaudited)
- -------------------------------------------------------------------------------
NOTE 6--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.
The Fund has 200 million of each class of shares of $.01 par value capital
stock authorized. Transactions in shares of capital stock for the period were
as follows:
<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, December 31,
1995 1994
- -------------------------------------------------------------------------------
<S> <C> <C>
Shares sold
Class A........................................ 206,545 1,262,355
Class B........................................ 170,388 852,544
Class C........................................ 45,333 142,266
-------- ---------
422,266 2,257,165
-------- ---------
Shares issued for distributions reinvested
Class A........................................ 7,910 12,547
Class B........................................ 1,201 3,886
Class C........................................ 266 807
-------- ---------
9,377 17,240
-------- ---------
Shares redeemed
Class A........................................ (38,141) (18,739)
Class B........................................ (127,872) (53,742)
Class C........................................ (14,258) (7,404)
-------- ---------
(180,271) (79,885)
-------- ---------
Increase in shares outstanding.................. 251,372 2,194,520
-------- ---------
</TABLE>
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.
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 representative 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>
AMERICAN CAPITAL GLOBAL MANAGED ASSETS FUND, INC.
BOARD OF DIRECTORS
J. MILES BRANAGAN
RICHARD E. CARUSO
ROGER HILSMAN
DON G. POWELL
DAVID REES
LAWRENCE J. SHEEHAN
FERNANDO SISTO*
WILLIAM S. WOODSIDE
*Chairman of the Board
OFFICERS
DON G. POWELL
President
CURTIS W. MORELL
Vice President and Treasurer
DENNIS J. MCDONNELL
JEFF D. NEW
RONALD A. NYBERG
ROBERT C. PECK, JR.
JOHN R. REYNOLDSON
ALAN T. SACHTLEBEN
PAUL R. WOLKENBERG
Vice Presidents
TANYA M. LODEN
Vice President and Controller
NORI L. GABERT
Vice President and Secretary
J. DAVID WISE
Vice President and Assistant Secretary
PERRY F. FARRELL
M. ROBERT SULLIVAN
Assistant Treasurers
HUEY P. FALGOUT, JR.
Assistant Secretary
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>
AMERICAN CAPITAL GLOBAL MANAGED ASSETS FUND, INC.
THIS PAGE INTENTIONALLY LEFT BLANK
30
<PAGE>
AMERICAN CAPITAL GLOBAL MANAGED ASSETS FUND, INC.
THIS PAGE INTENTIONALLY LEFT BLANK
31
<PAGE>
AMERICAN CAPITAL GLOBAL MANAGED ASSETS FUND, INC.
THIS PAGE INTENTIONALLY LEFT BLANK
32
