VAN KAMPEN AMERICAN CAPITAL GLOBAL MANAGED ASSETS FUND, N-30D, 1996-03-07

VAN KAMPEN AMERICAN CAPITAL GLOBAL MANAGED ASSETS FUND
N-30D, 1996-03-07

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<PAGE>

TABLE OF CONTENTS

<TABLE>
<S> <C>
Letter to Shareholders...................... 1
Performance Results......................... 3
Performance Perspective..................... 4
Portfolio Management Review................. 5
Portfolio of Investments.................... 8
Statement of Assets and Liabilities......... 17
Statement of Operations..................... 18
Statement of Changes in Net Assets.......... 19
Financial Highlights........................ 20
Notes to Financial Statements............... 23
Report of Independent Accountants........... 30
</TABLE>

GMA ANR 2/96

<PAGE>

LETTER TO SHAREHOLDERS

[PHOTO OF DENNIS J. MCDONNELL AND DON G. POWELL]

January 30, 1996

Dear Shareholder,
For most investors, it would be hard to surpass the success enjoyed during
1995. The U.S. stock and bond markets achieved substantial gains, driven by a
combination of continuing economic growth and low inflation, and many foreign
markets also enjoyed attractive returns. The strength of the U.S. equity and
fixed-income markets in 1995 was particularly impressive because it followed a
year in which both markets declined. People who remained invested during 1995
generally shared in the growth of the markets, while those investors who
retreated after 1994's downturn may have missed out on the double-digit returns.
The rebound in the markets last year reinforces the importance of maintain-
ing a long-term perspective for your investments, and of maintaining a diver-
sified portfolio of domestic and foreign investments. While the environment
for stocks and bonds in many major markets remains positive, it is unlikely
that 1996 will see a repeat of the U.S. markets' strong 1995 performance. How-
ever, over the long-term, stocks have outperformed virtually all other types
of investments, bonds have met the needs of investors who seek capital preser-
vation and regular income, and foreign securities provide portfolio diversifi-
cation.

ECONOMIC OVERVIEW
The U.S. economy grew throughout 1995, though the rate of growth slowed to-
ward year-end. The gross domestic product (the value of all goods and services
produced in the United States) grew at an annual rate of more than 4.2 percent
in the third quarter of 1995, but slowed to an estimated 2 to 3 percent in the
fourth quarter, with retail and auto sales particularly sluggish. The slower
growth rate eased concerns about a rise in inflation and allowed the Federal
Reserve Board to lower short-term interest rates by a quarter-percentage point
in late December. The reduction in rates during the latter half of 1995 is ex-
pected to help generate moderate economic growth in 1996, just as the Fed's
raising of short-term rates in 1994 helped slow economic growth in 1995.
The cut in short-term rates, combined with modest growth forecasts, was
viewed by the financial markets as a positive event, pushing up both stock and
bond prices. For the year ended December 31, 1995, the Standard & Poor's 500-
Stock Index achieved a total return of 37.45 percent. The yield on 10-year
Treasury notes was 5.57 percent on December 31, compared to 7.83 percent at
the beginning of the year. Because bond prices and yields move in opposite di-
rections, bond prices rose. Many observers expect the Fed to cut rates further
if Congress and the President are able to reach an agreement on the federal
budget, provided economic conditions justify further easing.
A number of major stock and bond markets overseas also did well in 1995.
Among 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 on
par with the S&P 500.
Continued on page two
1
<PAGE>

In the fixed-income markets, 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 economic trends.

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.
In terms of the U.S. markets, we are cautiously optimistic. We expect the do-
mestic economy to grow at a rate of 2 to 3 percent throughout 1996, with growth
stronger in the second half of the year as the full impact of the Fed's rate
cuts take effect. Lower rates will have the greatest impact on interest-sensi-
tive industries, such as housing. Although inflation
appears to be under control, there probably will be some cyclical upward pres-
sure in 1996.
The current economic conditions are ideal for stocks, especially those of
smaller companies, because they tend to be affected less by economic cycles.
The outlook for the fixed-
income market is positive, too. In the near-term, we believe domestic markets
will benefit from a stable U.S. dollar and increased business activity driven
in part by a number of strategic reorganizations of some of the nation's blue
chip industry leaders.
During recent months, debate over tax reform and the federal deficit has dom-
inated the agenda in Washington. Now that we are in a presidential election
year, tax reform likely will replace the budget battle as the top issue in
Washington. There has been varied speculation about the impact tax reform could
have on the economy and on various types of investments. We are following the
tax reform debate very closely, and we will keep you updated on this issue
throughout the year. See the winter issue of Your Portfolio for a detailed dis-
cussion of tax reform.
On the following pages, you can read about your Fund's performance in 1995,
as well as the portfolio management team's outlook for the Fund in the coming
months. We hope that you will find this information helpful.

CORPORATE NEWS
As part of our commitment to helping you achieve your investment goals, Van
Kampen American Capital strives to provide shareholders with the best service
in the mutual fund industry. That is why we are especially pleased to have re-
ceived the 1995 Quality Tested Service Seal, which is awarded annually by
DALBAR, Inc., an independent research firm. The Seal, which symbolizes the
achievement of the highest tier of service in the mutual fund industry, was
awarded to American Capital annually from 1990 to 1994 and we are honored that
the service provided by Van Kampen American Capital has achieved the same level
of excellence.

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 DECEMBER 31, 1995

VAN KAMPEN AMERICAN CAPITAL GLOBAL MANAGED ASSETS FUND

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

TOTAL RETURNS
<S> <C> <C> <C>
One-year total return based on NAV/1/................ 13.30% 12.31% 12.16%
One-year total return/2/............................. 7.90% 8.31% 11.16%
Life-of-Fund average annual total return/2/.......... 3.78% 3.62% 6.12%
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 (A shares) or contin-
gent deferred sales charge for early withdrawal (B 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>

PUTTING YOUR FUND'S PERFORMANCE IN PERSPECTIVE

As you evaluate your progress toward achieving your financial goals, it is
important to track your investment portfolio's performance at regular inter-
vals. A good starting point is a comparison of your investment holdings to an
applicable benchmark, such as a broad-based market index. Such a comparison
can:

. Illustrate the general market environment in which your investments are
being managed

. Reflect the impact of favorable market trends or difficult market
conditions

. Help you evaluate the extent to which your Fund's management team has
responded to the opportunities and challenges presented to them over the
period measured

For these reasons, you may find it helpful to review the chart below, which
compares your Fund's performance to that of the Morgan Stanley Capital Interna-
tional World Index and J.P. Morgan Global Traded Government Index over
time.These indices are unmanaged statistical composites and do not reflect any
commissions or fees which would be incurred by an investor purchasing the secu-
rities they represent. Similarly, their performance does not reflect any sales
charges or other costs which would be applicable to an actively managed portfo-
lio, such as that of the Fund.

GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
Van Kampen American Capital Global Managed Assets Fund vs. Morgan Stanley
Capital International World Index and J.P. Morgan Global Traded Government
Index (May 1994 through December 1995)

<TABLE>

[GRAPH APPEARS HERE]

Fund's Total Return
1 Year Avg. Annual = 7.90%
Inception Avg. Annual = 3.78%

<CAPTION>
VKAC Global Morgan Stanley J.P. Morgan
Managed Assets Capital International Global Traded
Measurement Period Fund World Index Government Index
- ------------------ -------------- --------------------- ----------------
<S> <C> <C> <C>
May-1994 $ 9,526 $10,000 $10,000
Jun-1994 $ 9,422 $ 9,966 $10,119
Sep-1994 $ 9,531 $10,138 $10,237
Dec-1994 $ 9,376 $10,021 $10,284
Mar-1995 $ 9,567 $10,443 $11,310
Jun-1995 $10,036 $10,843 $11,884
Sep-1995 $10,479 $11,401 $11,869
Dec-1995 $10,623 $11,895 $12,268
</TABLE>

The above chart reflects the performance of Class A shares of the Fund. The
performance of Class A shares will differ from that of other share classes of
the Fund because of the difference in sales charges and/or expenses paid by
shareholders investing in the different share classes. The Fund's performance
assumes reinvestment of all distributions for the period ended December 31,
1995, and includes payment of the maximum sales charge (4.75% for A shares).
While past performance is not indicative of future performance, the above in-
formation provides a broader vantage point from which to evaluate the discus-
sion of the Fund's performance found in the following pages.

4
<PAGE>

PORTFOLIO MANAGEMENT REVIEW

VAN KAMPEN AMERICAN CAPITAL GLOBAL MANAGED ASSETS FUND
The following is an interview with the management team of Van Kampen American
Capital Global Managed Assets Fund. The team is led by Jeff D. New and John R.
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 GENERAL MARKET CONDITIONS HAD THE GREATEST IMPACT ON THE FUND'S PER-
FORMANCE IN 1995?

A For most of the year, the global economic environment remained broadly
positive with expanding business activity and subdued inflation in most
developed countries.
During the first half of 1995:
. The U.S. dollar fell against major currencies and economic problems in
several countries contributed to greater volatility in the financial
markets.
. The Japanese markets suffered due to a host of factors including the Kobe
earthquake, political uncertainties, trade friction with the U.S. and a
strong yen.
And, during the second half of the year:
. A broad economic slowdown--and accompanying lower inflation rates--became
apparent outside the U.S. Growth in Europe, in particular, began to slow
sharply. In combination with more moderate economic growth and low interest
rates in the U.S., this contributed to a continuation of the generally
positive environment for the world's markets.
. The U.S. dollar reversed its eighteen-month decline in value against other
major currencies. 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 YEAR?

A We continued to invest in both the stock and bond markets, as significant
opportunities existed in both sectors during the period. As shown by the
tables below, we modestly reduced our bond holdings later in the year, in or-
der to take advantage of greater opportunities in the world's stock markets--
particularly in continental Europe, where corporate profits should benefit
from a lower interest rate environment.

SECURITY WEIGHTINGS FOR THE PERIOD

<TABLE>
<CAPTION>
DECEMBER 31, 1994 JUNE 30, 1995 DECEMBER 31, 1995
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
STOCKS 50% 64% 70%
- -------------------------------------------------------------------------------
BONDS 34% 28% 27%
- -------------------------------------------------------------------------------
OTHER NET ASSETS 16% 8% 3%
</TABLE>

Our major focus remained on the U.S. where economic conditions--moderate
growth, low inflation and low interest rates--were very positive for its stock
and bond markets.

5
<PAGE>

Top 5 Countries Repre- EQUITY INVESTMENTS: The U.S. stock market
sented outperformed most international markets throughout
in the Portfolio 1995, reflecting the more advanced stage of its
as of December 31, 1995 economic cycle and a generally positive environment
for corporate revenues and profits.

France We maintained the strategy of investing in at
Japan least three of the key equity markets, including
Sweden the United States, as well as holding many smaller
United Kingdom positions throughout continental Europe and the Far
United States East. In an effort to help reduce volatility during
the period, investments in developed markets with
stable currencies were emphasized.
As we move into 1996, we will continue to favor investments which stand to
benefit from the low and declining interest rate environments seen around the
world. Positions in capital equipment, financial services and other service-
oriented companies may be increased.

BOND INVESTMENTS: World bond markets rallied through much of 1995--led by
the U.S. market during the first half of the year. As the year progressed,
however, bond market leadership shifted as relative growth profiles reversed:
U.S. economic growth became relatively higher as growth in other parts of the
world decreased. As such, the European and Japanese markets, which had been
appreciating along with the U.S. bond market began to outperform the U.S. in
the second half of the year.
The Fund's exposure has been largely concentrated on the U.S. bond market
with European markets playing a smaller, but important, role. 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 shifted some of its assets
from larger to smaller European markets--Sweden and Spain for example. Final-
ly, the Fund maintained a significant position in U.S. dollars during the year
as a defensive measure against notable currency volatility. This strategy
proved to be beneficial throughout the year.

Q HOW DID THE FUND PERFORM DURING THE YEAR ENDED DECEMBER 31, 1995?

A During the year ended December 31, 1995, the Fund (Class A shares)
achieved a total return at net asset value of 13.30 percent/1/. During
the same period, the Morgan Stanley Capital International World Index (an un-
managed index that is used as a benchmark for general global equity funds) had
a total return of 18.70 percent. The J.P. Morgan Global Traded Government In-
dex (an unmanaged index of major foreign and U.S. Government bonds that are
weighted by the total market value of each country's securities and reflect
variations in currency value) achieved a total return of 17.96 percent for the
reporting period. These indices are unmanaged, statistical composites and do
not reflect any commissions or fees that would be paid by an investor purchas-
ing the securities they represent.

6
<PAGE>

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

A Going forward, we believe the economic conditions underlying global mar-
kets 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 and we do not expect any sudden resurgence of growth
and inflationary fears.
. Finally, 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 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
Please see footnotes on page three.

7
<PAGE>

PORTFOLIO OF INVESTMENTS

December 31, 1995

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Description Market Value
- --------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCK AND EQUIVALENTS 70.1%
AUSTRALIA 0.9%
20,000 Pioneer International, Ltd.......................... $ 51,583
13,000 Smith (Howard)...................................... 61,357
25,000 Tab Corp Holdings................................... 70,611
*37,000 TNT................................................. 48,952
-----------
232,503
-----------
AUSTRIA 0.2%
240 AMS Austria Mikros.................................. 38,934
-----------
BELGIUM 0.4%
2,100 GIB................................................. 92,192
-----------
BRAZIL 0.4%
5,300 Centrais Eletricas Brasileiras 72,213
*5,000 Usiminas Usi........................................ 40,625
-----------
112,838
-----------
CANADA 0.4%
2,000 Inco, Ltd........................................... 66,093
1,300 Seagram Co., Ltd.................................... 44,865
-----------
110,958
-----------
FINLAND 0.5%
1,000 Kymmene Corp........................................ 26,440
2,700 Nokia (AB) OY, Series A............................. 106,153
-----------
132,593
-----------
FRANCE 3.9%
*1,700 Axime............................................... 130,876
1,640 Christian Dior...................................... 176,827
244 Club Mediterranee................................... 19,482
1,120 Credit Local De France (includes 84 warrants)....... 89,655
1,008 Primagaz (Cie Gaz).................................. 74,120
1,000 Sanofi.............................................. 64,100
*2,000 SGS Thomson Micro................................... 76,577
290 Sidel............................................... 90,370
770 Societe Generale.................................... 95,130
8,000 Usindr Sacilor...................................... 105,779
600 Union Assurance Federales........................... 71,676
-----------
994,592
-----------
GERMANY 2.8%
*2,200 Adidas.............................................. 116,403
400 Bayer............................................... 105,542
2,000 Berliner Elektro Holdings........................... 65,249
110 Ckag Colonia Konzern................................ 71,314
1,200 Deutsche Bank....................................... 56,859
70 Mannesmann.......................................... 22,286
4,900 Prakticker.......................................... 149,955
130 Siemens............................................. 71,140
100 Wella............................................... 53,816
-----------
712,564
-----------
</TABLE>

See Notes to Financial Statements

8
<PAGE>

PORTFOLIO OF INVESTMENTS (CONTINUED)

December 31, 1995

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Description Market Value
- --------------------------------------------------------------------------------
<C> <S> <C>
HONG KONG 2.7%
78,000 First Pacific Co.................................... $ 86,751
15,000 Hong Kong Electric.................................. 49,176
65,000 Hong Kong Land Holding.............................. 120,250
4,800 HSBC Holdings....................................... 72,628
16,000 Hutchison Whampoa................................... 97,459
*330,000 Jilin Chemical Industries, Class H.................. 68,283
11,000 Sun Hung Kai Properties............................. 89,977
13,000 Swire Pacific....................................... 100,873
-----------
685,397
-----------
INDONESIA 0.3%
3,000 Perusahaan Persero Telekom.......................... 75,750
-----------
ITALY 0.3%
2,000 Gucci Group......................................... 77,750
-----------
JAPAN 14.2%
5,000 Amada, Co........................................... 49,395
13,000 Bank of Tokyo....................................... 227,894
4,000 Dainei Telecom Engineering.......................... 34,479
*8,000 Dainippon Screen Manufacturing Co................... 70,199
19,000 Daiwa Securities.................................... 290,751
*26,000 Denki Kagaku Kogyo.................................. 94,431
12,000 Fujitsu............................................. 133,656
13,000 Hitachi............................................. 130,944
5,000 Honda Motor Co...................................... 103,148
*5,000 Japan Air Lines Co.................................. 33,172
4,000 Komatsu............................................. 32,930
10,000 Kumagai Gumi Co..................................... 40,194
2,000 Kyocera Corp........................................ 148,571
10,000 Marubeni Corp....................................... 54,140
2,000 Maruichi Steel Tube................................. 36,610
5,000 Matsushita Electric Industrial Co................... 81,356
4,000 Mitsubishi Estate................................... 49,976
17,000 Mitsubishi Heavy Industries......................... 135,506
20,000 Mitsukoshi.......................................... 187,893
3,000 Nippon Hodo Corp. .................................. 50,847
10 Nippon Telephone & Telegraph Corp................... 80,872
6,000 Nishimatsu Construction............................. 70,315
11,000 Nomura Securities................................... 239,709
7,000 Omron Corp. ........................................ 161,356
9,000 Onward Kashiyama Co. ............................... 146,441
11,000 Ricoh Co............................................ 120,387
2,000 Rohm Co. ........................................... 112,930
</TABLE>

See Notes to Financial Statements

9
<PAGE>

PORTFOLIO OF INVESTMENTS (CONTINUED)

December 31, 1995

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Description Market Value
- --------------------------------------------------------------------------------
<C> <S> <C>
3,000 Sanwa Bank.......................................... $ 61,017
6,000 SXL Corp............................................ 62,179
9,000 Tadano.............................................. 75,835
1,000 TDK Corp............................................ 51,041
4,000 Tokio Marine & Fire Insurance Co.................... 52,300
3,000 Tokyo Electron...................................... 116,223
7,000 Tokyu Corp. ........................................ 49,424
10,000 Toshiba Corp........................................ 78,354
*2,000 Toyota Motor Corp. ................................. 42,421
5,000 Yamanouchi Pharmacy................................. 107,506
-----------
3,614,402
-----------
MALAYSIA 1.2%
10,000 Commerce Asset Holding.............................. 50,400
26,000 Malaysian Pacific Industries........................ 80,364
30,000 Resorts World....................................... 160,648
-----------
291,412
-----------
MEXICO 0.8%
8,000 Cemex............................................... 55,500
6,000 Empresas Ica Sociedad............................... 61,500
2,400 Telefonos de Mexico................................. 76,500
-----------
193,500
-----------
NETHERLANDS 2.5%
*2,000 BE Semiconductor Industries......................... 26,173
1,732 ING Group........................................... 115,704
2,000 Philips Electronics................................. 72,288
2,100 Philips Electronics, Inc. .......................... 75,338
200 Royal Dutch Petroleum Co. .......................... 28,225
3,900 Stork............................................... 96,729
540 Unilever............................................ 75,883
1,000 Ver Ned Uitgevers................................... 137,284
-----------
627,624
-----------
NORWAY 0.9%
1,600 Kvaerner............................................ 53,552
1,500 Orkla............................................... 71,518
*13,000 Uni Storebrand...................................... 71,833
2,000 Unitor.............................................. 27,470
-----------
224,373
-----------
PORTUGAL 0.3%
*3,000 Investec Consultant................................. 60,130
3,500 Portucel Industrial................................. 20,790
-----------
80,920
-----------
SINGAPORE 1.2%
9,000 Fraser & Neave...................................... 114,528
10,000 Overseas Union Bank................................. 68,929
20,000 Singapore Land...................................... 129,375
-----------
312,832
-----------
</TABLE>

See Notes to Financial Statements

10
<PAGE>

PORTFOLIO OF INVESTMENTS (CONTINUED)

December 31, 1995

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Description Market Value
- --------------------------------------------------------------------------------
<C> <S> <C>
SOUTH KOREA 0.6%
2,000 Samsung Electric Co. ............................... $ 120,000
411 Samsung Electronic.................................. 24,650
-----------
144,650
-----------
SPAIN 0.3%
1,900 Tabacalera, SA...................................... 72,053
-----------
SWEDEN 3.8%
2,000 Astra............................................... 79,220
13,000 Atlas Copco......................................... 199,708
9,000 Celsius............................................. 182,990
6,600 Ericsson (LM) Telephone............................. 129,223
2,000 Hoganas............................................. 58,436
35,000 Rottneros........................................... 36,899
15,000 Skandinavska Emskilda Banken........................ 124,253
4,000 Stora Kopparbergs................................... 47,894
4,100 Svedala Industrial.................................. 105,592
-----------
964,215
-----------
SWITZERLAND 2.9%
140 Alusisse Lonza Holdings............................. 110,932
200 Ciba Geigy.......................................... 175,986
875 CS Holdings......................................... 89,700
80 Nestle.............................................. 88,496
100 Schindler Holdings.................................. 103,598
90 SGS Holdings........................................ 178,673
-----------
747,385
-----------
THAILAND 0.6%
9,000 National Financial & Securities..................... 48,233
1,000 Siam Cement Co...................................... 55,419
*17,000 Telecomasia......................................... 51,628
-----------
155,280
-----------
UNITED KINGDOM 8.4%
50,000 Astec............................................... 88,523
22,000 BAA................................................. 166,392
5,500 BOC Group........................................... 76,961
12,000 British Telecom..................................... 65,787
25,000 Cable & Wireless.................................... 178,987
5,000 De La Rue........................................... 50,551
14,000 Dixons Group........................................ 96,537
18,000 Fairey Group........................................ 150,116
10,000 Farnell Electronic.................................. 111,586
20,000 Granada Group....................................... 200,342
294 Inchcape............................................ 1,137
8,200 London Electricity.................................. 73,035
</TABLE>

See Notes to Financial Statements

11
<PAGE>

PORTFOLIO OF INVESTMENTS (CONTINUED)

December 31, 1995

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Description Market Value
- --------------------------------------------------------------------------------
<C> <S> <C>
8,000 Marks & Spencer...................................... $ 55,909
6,992 National Grid Group.................................. 21,609
10,000 National Westminster................................. 100,714
30,000 Next................................................. 212,455
20,000 Reuters Holdings..................................... 183,103
12,000 Sainsbury (J)........................................ 73,148
7,000 Severn Trent......................................... 74,740
3,000 Shell Transportation & Trading....................... 39,672
5,000 SmithKline Beecham................................... 55,133
15,000 Tesco................................................ 69,188
-----------
2,145,625
-----------
UNITED STATES 19.6%
*700 Adaptec, Inc......................................... 28,700
400 Aetna Lite & Casualty Co............................. 27,700
1,400 Allstate Corp........................................ 57,575
400 Aluminum Co. of America.............................. 21,150
*500 American Radio System Corp., Class A................. 14,000
*400 Amgen, Inc........................................... 23,750
500 Analog Devices, Inc.................................. 17,688
500 Applied Materials, Inc............................... 19,688
*100 Ascend Communications, Inc........................... 8,113
500 AT&T Corp............................................ 32,375
800 BankAmerica Corp..................................... 51,800
1,300 Bank of Boston Corp.................................. 60,125
400 Bank of New York, Inc................................ 19,500
200 BayBanks, Inc........................................ 19,650
*1,100 Bay Networks, Inc.................................... 45,238
7,000 BE Semiconductor Industries.......................... 91,000
500 Boeing Co............................................ 39,188
400 Bowater, Inc......................................... 14,200
500 Bristol Myers Squibb Co.............................. 42,938
*600 Buffets, Inc......................................... 8,250
100 Burlington Northern.................................. 7,800
*400 Cabletron Systems, Inc............................... 32,400
450 Cadence Design Systems, Inc.......................... 18,900
300 Case Corp............................................ 13,725
500 Cellular Communications, Inc......................... 24,875
900 Chemical Banking Corp................................ 52,875
400 Chrysler Corp........................................ 22,150
500 Circon Corp.......................................... 10,125
*500 Cisco Systems, Inc................................... 37,313
600 Citicasters, Inc..................................... 14,175
</TABLE>

See Notes to Financial Statements

12
<PAGE>

PORTFOLIO OF INVESTMENTS (CONTINUED)

December 31, 1995

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Description Market Value
- --------------------------------------------------------------------------------
<C> <S> <C>
600 Citicorp.............................................. $ 40,350
*200 Coherent, Inc......................................... 8,100
*600 Community Health System, Inc.......................... 21,375
*800 Compaq Computer Corp.................................. 38,400
1,000 Computer Associates International, Inc................ 56,875
1,450 ConAgra, Inc.......................................... 59,812
400 Conrail, Inc.......................................... 28,000
300 Conseco, Inc.......................................... 18,787
700 Consolidated Stores Corp.............................. 15,225
*1,100 Cox Communications, Inc., Class A..................... 21,450
800 CPC International, Inc................................ 54,900
300 CSX Corp.............................................. 13,688
*600 Cytec Industries, Inc................................. 37,425
*500 Dell Computer Corp.................................... 17,312
500 Disney (Walt) Co...................................... 29,500
700 Dover Corp............................................ 25,812
*900 DST Systems, Inc...................................... 25,650
*1,500 Eckerd (Jack) Corp.................................... 66,937
*1,000 Emmis Broadcasting Corp., Class A..................... 31,000
*1,000 Evergreen Media Co.................................... 32,000
900 Exxon Corp............................................ 72,112
1,300 Federal National Mortgage Association................. 161,362
1,000 Federated Department Stores, Inc...................... 27,500
500 First Data Corp....................................... 33.438
*800 Foundation Health Corp................................ 34,400
700 Franklin Resources, Inc............................... 35,263
700 Frontier Corp......................................... 21,000
*400 FTP Software, Inc..................................... 11,600
500 Gap, Inc.............................................. 21,000
*700 Gateway 2000, Inc..................................... 17,150
2,300 General Nutrition Companies, Inc...................... 52,900
600 Genzyme Corp.......................................... 37,425
*1,050 Grand Casinos, Inc.................................... 24,413
20,000 Grandetel Technologies, Inc........................... 10,000
600 Greenfield Industries, Inc............................ 18,750
2,000 Green Tree Financial Corp............................. 52,750
600 Guidant Corp.......................................... 25,350
500 Halliburton Co........................................ 25,312
700 Harmischfeger Industries, Inc......................... 23,275
*850 Health Management Association, Inc., Class A.......... 22,207
300 Hercules, Inc......................................... 16,912
</TABLE>

See Notes to Financial Statements

13
<PAGE>

PORTFOLIO OF INVESTMENTS (CONTINUED)

December 31, 1995

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Description Market Value
- --------------------------------------------------------------------------------
<C> <S> <C>
600 Illinois Central Corp.................................. $ 23,025
500 Illinois Tool Works, Inc............................... 29,500
200 IMC Global, Inc........................................ 8,175
*100 In Focus Systems, Inc.................................. 3,612
500 Intel Corp............................................. 28,375
*1,300 International Rectifier Corp........................... 32,500
400 James River Corp....................................... 9,650
200 Johnson Control, Inc................................... 13,750
750 Johnson & Johnson...................................... 64,219
468 Kimberly Clark Corp.................................... 38,727
*400 KLA Instruments Corp................................... 10,425
500 Komag, Inc............................................. 23,062
*1,900 Kroger Co.............................................. 71,250
*400 LAM Research Corp...................................... 18,300
1,800 LG Chemical, Ltd....................................... 37,710
*950 Lincare Holdings, Inc.................................. 23,750
600 Linear Technology Corp................................. 23,550
*300 Litton Industries, Inc................................. 13,350
*500 LSI Logic Corp......................................... 16,375
950 Marriot International, Inc............................. 36,337
*500 Maxicare Health Plans, Inc............................. 13,437
3,200 MCI Communications Corp................................ 83,600
*400 Medic Computer Systems, Inc............................ 24,200
*200 MediSense, Inc......................................... 6,325
400 Medtronic, Inc......................................... 22,350
300 Mentor Corp............................................ 6,900
700 Merck & Co., Inc....................................... 46,025
1,900 Mercury Financial Co................................... 25,175
4,000 Metalclad Corp......................................... 16,000
500 Microcom, Inc.......................................... 13,000
*700 Microsoft Corp......................................... 61,425
750 Mobil Corp............................................. 84,000
400 Monsanto Co............................................ 49,000
*400 MSC Industrial Direct, Inc., Class A................... 11,000
*500 Nautica Enterprises, Inc............................... 21,875
*500 Nellcor Puritan Bennett, Inc........................... 29,000
*200 Northwest Airlines Corp., Class A...................... 10,200
*700 Oak Technology, Inc.................................... 29,575
*1,700 Office Max. Inc........................................ 38,037
1,300 Omnicom Group, Inc..................................... 48,425
</TABLE>

See Notes to Financial Statements

14
<PAGE>

PORTFOLIO OF INVESTMENTS (CONTINUED)

December 31, 1995

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares Description Market Value
- --------------------------------------------------------------------------------
<C> <S> <C>
*400 Oracle System Corp.................................... $ 16,950
*400 Outback Steakhouse, Inc............................... 14,350
1,600 Panhandle Eastern Corp................................ 44,600
*300 Pairgain Technologies, Inc............................ 16,425
300 Parker Hennifin Corp.................................. 10,275
900 Penncorp Financial Group, Inc......................... 26,437
1,700 PepsiCo, Inc.......................................... 94,988
825 Pharmaceutical & Upjohn Co............................ 31,967
2,300 Phillip Morris Companies, Inc......................... 208,150
2,100 Praxair, Inc.......................................... 70,613
200 Ralston Purina Co..................................... 12,475
600 Reliastar Financial Corp.............................. 26,625
*500 Renal Treatment Centers, Inc.......................... 22,000
2,000 Richter Gedeon........................................ 38,400
*1,600 Safeway, Inc.......................................... 82,400
1,400 Schering-Plough Corp.................................. 76,650
*900 SCI Systems, Inc...................................... 27,900
*500 Seagate Technology, Inc............................... 23,750
1,200 Sears Roebuck & Co.................................... 46,800
1,500 Service Corp. International........................... 66,000
400 Sigma-Aldrich Corp.................................... 19,800
*1,200 Smith International, Inc.............................. 28,200
500 Snap-On, Inc.......................................... 22,625
1,500 Sprint Corp........................................... 59,813
*700 S3, Inc............................................... 12,338
850 Sun America, Inc...................................... 40,375
*200 Sun Microsystems, Inc................................. 9,125
*1,100 Symantec Corp......................................... 25,575
800 Terra Industries, Inc................................. 11,300
200 Texaco, Inc........................................... 15,700
200 Textron, Inc.......................................... 13,500
*400 3Com Corp............................................. 18,650
*1,300 Trump Hotels & Casino Resorts......................... 27,950
300 Union Carbide Corp.................................... 11,250
300 United Technologies Corp.............................. 28,463
1,300 United Waste Systems, Inc............................. 48,425
*300 US Robotics Corp...................................... 26,325
*450 Varity Corp........................................... 16,706
*700 Viacom, Inc., Class B................................. 33,163
</TABLE>

See Notes to Financial Statements

15
<PAGE>

PORTFOLIO OF INVESTMENTS (CONTINUED)

December 31, 1995

See Notes to Financial Statements

16
<PAGE>

STATEMENT OF ASSETS AND LIABILITIES

December 31, 1995

- --------------------------------------------------------------------------------
ASSETS
<TABLE>
<S> <C>
Investment, at market value (Cost $25,082,216)................... $26,520,279
Foreign currency, at market value (Cost $126,610)................ 125,636
Cash............................................................. 1,169
Receivable for offsetting forward bond commitments............... 1,009,049
Dividends and interest receivable................................ 204,820
Unrealized appreciation of forward commitments and currency
exchange contracts............................................... 151,122
Receivable for investments sold.................................. 143,936
Receivable for Fund shares sold.................................. 42,848
Other assets and receivables..................................... 17,293
-----------
Total Assets.................................................... 28,216,152
-----------

LIABILITIES
Payable for Fund shares purchased................................ 1,115,972
Payable for offsetting forward bond commitments.................. 987,012
Payable for investments purchased................................ 458,801
Unrealized depreciation of forward commitments and currency
exchange contracts............................................... 24,357
Distributions payable............................................ 21,357
Due to Adviser................................................... 18,558
Due to Distributor............................................... 17,063
Deferred Trustees' compensation.................................. 3,422
Accrued expenses and other liabilities........................... 114,583
-----------
Total Liabilities............................................... 2,761,125
-----------
NET ASSETS, equivalent to $10.15 per share for Class A, $10.10
per share for Class B, and
$10.12 per share for Class C shares............................. $25,455,027
-----------
NET ASSETS WERE COMPRISED OF:
Shares of beneficial interest, at par; 1,528,430 Class A, 802,255
Class B, and 181,833 Class C shares outstanding................. $ 25,125
Capital surplus.................................................. 23,701,323
Undistributed net realized gain on securities.................... 168,396
Unrealized appreciation (depreciation) of securities
Investments..................................................... 1,438,063
Forward commitments............................................. 96,897
Offsetting forward commitments.................................. 11,346
Foreign currency................................................ (974)
Forward currency exchange contracts............................. 29,868
Other foreign denominated assets and liabilities................ (383)
Accumulated net investment loss.................................. (14,634)
-----------
NET ASSETS....................................................... $25,455,027
-----------
</TABLE>

See Notes to Financial Statements

17
<PAGE>

STATEMENT OF OPERATIONS

Year Ended December 31, 1995

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

<TABLE>
<S> <C>
INVESTMENT INCOME
Interest........................................................... $ 569,273
Dividends (net of $32,603 of foreign taxes withheld at source)..... 271,649
----------
Investment income................................................. 840,922
----------
EXPENSES
Management fees.................................................... 232,342
Shareholder service agent's fees and expenses...................... 148,428
Accounting services................................................ 29,687
Service fees--Class A.............................................. 11,884
Distribution and service fees--Class B............................. 78,577
Distribution and service fees--Class C............................. 16,189
Trustees' fees and expenses........................................ 18,890
Audit fees......................................................... 77,803
Custodian fees..................................................... 142,399
Legal fees......................................................... 9,465
Reports to shareholders............................................ 50,730
Registration and filing fees....................................... 123,495
Organization expenses.............................................. 3,289
Miscellaneous...................................................... 797
Expense reimbursement--see Note 3.................................. (205,270)
----------
Total expenses.................................................... 738,705
----------
NET INVESTMENT INCOME.............................................. 102,217
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES
Net realized gain (loss) on securities
Investments and forward commitments............................... 706,193
Futures contracts................................................. 6,433
Foreign currency.................................................. (56,323)
Forward currency exchange contracts............................... 91,299
Net unrealized appreciation (depreciation) of securities
Investments....................................................... 1,832,220
Forward commitments............................................... 121,340
Offsetting forward commitments.................................... 11,346
Foreign currency.................................................. 1,926
Forward currency exchange contracts............................... (6,176)
Futures contracts................................................. 36,930
Other foreign denominated assets and liabilities.................. (295)
----------
NET REALIZED AND UNREALIZED GAIN ON SECURITIES..................... 2,744,893
----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................... $2,847,110
----------
</TABLE>

See Notes to Financial Statements

18
<PAGE>

STATEMENT OF CHANGES IN NET ASSETS

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended May 16, 1994*
December 31, through
1995 December 31, 1994
- --------------------------------------------------------------------------------
<S> <C> <C>
NET ASSETS, beginning of period............... $20,151,878 $ 101,000
----------- -----------
OPERATIONS
Net investment income........................ 102,217 111,532
Net realized gain (loss) on securities....... 747,602 (69,995)
Net unrealized appreciation (depreciation) of
securities during the period................ 1,997,291 (422,474)
----------- -----------
Increase (decrease) in net assets resulting
from operations.............................. 2,847,110 (380,937)
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM (see Note
2I)
Net investment income
Class A...................................... (109,529) (83,040)
Class B**.................................... (14,553) (18,953)
Class C**.................................... (2,914) (4,131)
----------- -----------
(126,996) (106,124)
----------- -----------
Net realized gain on securities
Class A...................................... (270,443) --
Class B...................................... (142,058) --
Class C...................................... (32,127) --
----------- -----------
(444.628) --
----------- -----------
Excess of book-basis net realized gain on
securities
Class A...................................... -- (34,466)
Class B...................................... -- (21,661)
Class C...................................... -- (3,719)
----------- -----------
-- (59,846)
----------- -----------
Total distributions.......................... (571,624) (165,970)
----------- -----------
CAPITAL TRANSACTIONS
Proceeds from shares sold
Class A...................................... 3,909,901 11,810,850
Class B...................................... 3,055,675 8,030,788
Class C...................................... 1,374,753 1,340,315
----------- -----------
8,340,329 21,181,953
----------- -----------
Proceeds from shares issued for distributions
reinvested
Class A...................................... 376,012 116,609
Class B...................................... 138,274 35,987
Class C...................................... 33,442 7,489
----------- -----------
547,728 160,085
----------- -----------
Cost of shares redeemed
Class A...................................... (1,662,569) (174,627)
Class B...................................... (3,228,108) (501,046)
Class C...................................... (969,717) (68,580)
----------- -----------
(5,860,394) (744,253)
----------- -----------
Increase in net assets resulting from capital
transactions................................. 3,027,663 20,597,785
----------- -----------
INCREASE IN NET ASSETS........................ 5,303,149 20,050,878
----------- -----------
NET ASSETS, end of period (including
accumulated net investment loss of $14,634
and undistributed net investment income of
$2,926, respectively)........................ $25,455,027 $20,151,878
----------- -----------
</TABLE>
*Commencement of operations.
**All of the distributions for December 31, 1995 are in excess of book-basis
net investment income.

See Notes to Financial Statements

19
<PAGE>

FINANCIAL HIGHLIGHTS

Selected data for a share of beneficial interest outstanding throughout the
periods indicated.

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A(/3/)
------------------------------------
Year May 16, 1994(/1/)
Ended through
December 31, 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....................... .35 .28
Expenses................................ (.27) (.18)
------ -------
Net investment income.................... .08 .10
Net realized and unrealized gain (loss)
on securities............................ 1.1375 (.2475)
------ -------
Total from investment operations......... 1.2175 (.1475)
------ -------
LESS DISTRIBUTIONS FROM (see Note 2I)
Net investment income................... (.0775) (.075)
Net realized gain on securities......... (.18) --
Excess of book-basis net realized gain
on securities........................... -- (.0275)
------ -------
Total distributions...................... (.2575) (.1025)
------ -------
Net asset value, end of period........... $10.15 $9.19
------ -------
TOTAL RETURN (/2/)....................... 13.30% (1.57%)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (millions)..... $15.5 $11.5
Average net assets (millions)............ $13.8 $10.1
Ratios to average net assets (annualized)
Expenses................................ 2.79% 2.75%
Expenses, without expense reimbursement. 3.68% 2.76%
Net investment income................... .81% 1.54%
Net investment income (loss), without
expense reimbursement................... (.07)% 1.53%
Portfolio turnover rate.................. 135% 50%
</TABLE>

(1)Commencement of operations.
(2)Total returns for periods of less than one full year are not annualized.
Total return does not consider the effect of sales charges.
(3)Based on average month-end shares outstanding.

See Notes to Financial Statements

20
<PAGE>

FINANCIAL HIGHLIGHTS (CONTINUED)

Selected data for a share of beneficial interest outstanding throughout the
periods indicated.

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class B(/3/)
------------------------------------
Year May 16, 1994(/1/)
Ended through
December 31, 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....................... .35 .26
Expenses................................ (.36) (.25)
------ -------
Net investment income.................... (.01) .01
Net realized and unrealized gain (loss)
on securities............................ 1.1375 (.2065)
------ -------
Total from investment operations......... 1.1275 (.1965)
------ -------
LESS DISTRIBUTIONS FROM see (Note 2I)
Net investment income................... -- (.046)
Net realized gain on securities......... (.18) --
Excess of book-basis net investment
income.................................. (.0175) --
Excess of book-basis net realized gain
on securities........................... -- (.0275)
------ -------
Total distributions...................... (.1975) (.0735)
------ -------
Net asset value, end of period........... $10.10 $9.17
------ -------
TOTAL RETURN (/2/)....................... 12.31% (2.09%)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (millions)..... $8.1 $7.4
Average net assets (millions)............ $7.9 $4.6
Ratios to average net assets (annualized)
Expenses................................ 3.73% 3.92%
Expenses, without expense reimbursement. 4.61% 3.93%
Net investment income (loss)............ (.09%) .13%
Net investment income (loss), without
expense reimbursement................... (.97%) .12%
Portfolio turnover rate.................. 135% 50%
</TABLE>

(1)Commencement of operations.
(2) Total returns for periods of less than one full year are not annualized.
Total return does not consider the effect of sales charges.
(3)Based on average month-end shares outstanding.

See Notes to Financial Statements

21
<PAGE>

FINANCIAL HIGHLIGHTS (CONTINUED)

Selected data for a share of beneficial interest outstanding throughout the
periods indicated.

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class C(/3/)
------------------------------------
Year May 16, 1994(/1/)
Ended through
December 31, 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....................... .35 .27
Expenses................................ (.37) (.22)
------ -------
Net investment income.................... (.02) .05
Net realized and unrealized gain (loss)
on securities............................ 1.1375 (.2165)
------ -------
Total from investment operations......... 1.1175 (.1665)
------ -------
LESS DISTRIBUTIONS FROM see (Note 2I)
Net investment income................... -- (.046)
Net realized gain on securities......... (.18) --
Excess of book-basis net investment
income.................................. (.0175) --
Excess of book-basis net realized gain
on securities........................... -- (.0275)
------ -------
Total distributions...................... (.1975) (.0735)
------ -------
Net asset value, end of period........... $10.12 $9.20
------ -------
TOTAL RETURN (/2/)....................... 12.16% (1.77%)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (millions)..... $1.9 $1.3
Average net assets (millions)............ $1.6 $1.0
Ratios to average net assets (annualized)
Expenses................................ 3.79% 3.36%
Expenses, without expense reimbursement. 4.67% 3.38%
Net investment income (loss)............ (.18%) .80%
Net investment income (loss), without
expense reimbursement................... (1.06%) .78%
Portfolio turnover rate.................. 135% 50%
</TABLE>

(1)Commencement of operations.
(2) Total returns for periods of less than one full year are not annualized.
Total return does not consider the effect of sales charges.
(3)Based on average month-end shares outstanding.

See Notes to Financial Statements

22
<PAGE>

NOTES TO FINANCIAL STATEMENTS

- -------------------------------------------------------------------------------
NOTE 1--ORGANIZATION
Van Kampen American Capital Global Managed Assets Fund (the "Fund," formerly
American Capital Global Managed Assets Fund, Inc.) Is registered under the In-
vestment Company Act of 1940, as amended and was organized as an open-end, di-
versified management investment company in Maryland on November 24, 1993. The
Fund's investment manager, Van Kampen American Capital Asset Management, 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 Fund seeks total return through a managed balance of foreign and domestic
equity and debt securities. Investments in foreign securities involve certain
risks not ordinarily associated with investments in securities of domestic is-
suers, including fluctuations in foreign exchange rates, future political and
economical 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 statements. The prep-
aration of financial statements in conformity with generally accepted account-
ing principles requires management to make estimates and assumptions that
affect the amounts reported. Actual amounts may differ from the estimates.

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
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. 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

23
<PAGE>

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

- -------------------------------------------------------------------------------
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 realized amount from the sale of currency and the
amount realized between trade date and settlement date on security transac-
tions.

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 to settle transac-
tions. 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.
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 unantici-
pated movements in the value of a foreign currency relative to the U.S. dol-
lar.

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 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

24
<PAGE>

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

- --------------------------------------------------------------------------------
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 recorded as a long-term purchase. For forward purchase commit-
ments for which security settlement is not intended by the Fund and for all
forward sales commitments, changes in the value of the commitment are recog-
nized by marking the commitment to market on a daily basis. During the commit-
ment, 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 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 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 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.

G. INVESTMENT TRANSACTIONS AND RELATED INVESTMENT INCOME-Investment transac-
tions are accounted for on the trade date. Realized gains and losses on invest-
ments 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 tax may be imposed on interest, div-
idends and realized gains generated from foreign investments. Such taxes are
generally reflected on the Statement of Operations as a reduction of the re-
lated 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, origi-
nal issue discounts on debt securities purchased are amortized over the life of
the security. Premiums on debt

25
<PAGE>

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

- -------------------------------------------------------------------------------
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 $131,969.
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 $15,161 and $6,383, 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 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

26
<PAGE>

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

- -------------------------------------------------------------------------------
incurred by the Distributor for Class B and 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 C
plans aggregated approximately $456,000 and $28,000, 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 re-
newal of the plans, future Fund reimbursements of distribution fees.
Legal fees during the period were for services rendered by former counsel of
the Fund, O'Melveny & Myers. A former trustee was of counsel to that firm.
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 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
$35,349,576 and $29,891,636, respectively.
For federal income tax purposes, the identified cost of investments and for-
eign currency at the end of the period was $25,232,696. Net unrealized appre-
ciation aggregated $1,413,219, gross unrealized appreciation aggregated
$2,126,304 and gross unrealized depreciation aggregated $713,085.
At the end of the period, the Fund held the following forward purchase com-
mitments for which settlement is not intended, offsetting forward commitments,
and forward currency exchange contracts:

FORWARD PURCHASE COMMITMENTS

<TABLE>
<CAPTION>
Par Amount
(000) Unrealized
(local currency) Description Coupon Maturity Appreciation
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
AUSTRIA (Government of)
4,000 settlement 1/22/96........... 6.875% 6/20/05 $ 41
NETHERLANDS (Government of)
600 settlement 3/14/96........... 7.000 6/15/05 11,422
FRANCE (Government of)
2,350 settlement 1/19/96........... 7.750 10/25/05 20,892
GERMANY (Treuhandanstalt)
300 settlement 2/20/96........... 6.750 5/13/04 7,070
1,000 settlement 2/23/96........... 6.750 5/13/04 26,747
ITALY (Republic of)
1,000,000 settlement 4/12/96........... 12.000 1/1/03 10,621
UNITED STATES
208 FHLMC, settlement 1/16/96.... 7.500 1/1/99 2,991
208 GNMA, settlement 1/22/96..... 8.000 1/1/99 3,512
US Treasury Notes, settlement
750 3/13/96.................... 7.500 3/13/96 4,224
US Treasury Notes, settlement
500 3/6/96..................... 5.750 8/15/03 9,377
-------
Total Forward Purchase
Commitments
(obligation $4,632,695).... $96,897
-------
</TABLE>

27
<PAGE>

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

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

OFFSETTING FORWARD COMMITMENTS

<TABLE>
<CAPTION>
Unrealized
Par Amount U.S. Dollar Value Currency
(000) Settlement ------------------- Appreciation
(Local Currency) Security Date Payable Receivable (Depreciation)
- -------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
AUSTRALIA
Commonwealth, 10.00%,
800 10/15/07................ 03/08/96 $676,004 $ 687,031 $12,623
NEW ZEALAND
460 8.00%, 4/15/04.......... 01/15/96 311,008 322,018 (1,277)
-------- ---------- -------
$987,012 $1,009,049 $11,346
-------- ---------- -------
</TABLE>

FORWARD CURRENCY EXCHANGE CONTRACTS

<TABLE>
<CAPTION>
U.S. Unrealized
Settlement Dollar Appreciation
Currency Date Value (Depreciation)
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
AUSTRALIAN DOLLAR
31,818 (payable)......................... 03/08/96 $ 23,572 $ (106)
FRENCH FRANC
2,001,400 (payable)...................... 04/11/96 408,699 (100)
GERMAN DEUTSCHE MARK
840,000 (receivable)..................... 02/16/96 587,028 (20,787)
SWEDISH KRONA
2,060,400 (payable)...................... 11/13/96 303,364 (3,364)
---------- --------
1,322,663 (24,357)
---------- --------
JAPANESE YEN
29,676,000 (payable)..................... 09/24/96 297,767 2,233
48,145,000 (payable)..................... 11/13/96 486,034 13,966
47,870,000 (payable)..................... 11/13/96 483,258 16,742
47,430,000 (payable)..................... 11/13/96 478,816 21,284
---------- --------
1,745,875 54,225
---------- --------
Total.................................. $3,068,538 $ 29,868
---------- --------
</TABLE>

NOTE 5--TRUSTEE COMPENSATION
Fund trustees who are not affiliated with the Adviser are compensated by the
Fund at the annual rate of $635 plus a fee of $18 per day for Board and Com-
mittee meetings attended. During the period, such fees aggregated $11,678.
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.

28
<PAGE>

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

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

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 C shares). All classes of shares have the same rights,
except that Class B and C shares bear the cost of distribution fees and cer-
tain other class specific expenses. Class B and C shares automatically convert
to Class A shares six years and ten years after purchase, respectively, sub-
ject to certain conditions. Realized and unrealized gains or losses, invest-
ment 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 an unlimited number of shares of $.01 par value beneficial in-
terest authorized. Transactions in shares of beneficial interest for the pe-
riod were as follows:

<TABLE>
<CAPTION>
Year Ended
December 31
-------------------
1995 1994
- -------------------------------------------------------------------------------
<S> <C> <C>
Shares sold
Class A................................................... 400,789 1,262,355
Class B................................................... 315,134 852,544
Class C................................................... 138,887 142,266
-------- ---------
854,810 2,257,165
-------- ---------
Shares issued for distributions reinvested
Class A................................................... 37,488 12,547
Class B................................................... 13,757 3,886
Class C................................................... 3,320 807
-------- ---------
54,565 17,240
-------- ---------
Shares redeemed
Class A................................................... (166,010) (18,739)
Class B................................................... (329,324) (53,742)
Class C................................................... (96,043) (7,404)
-------- ---------
(591,377) (79,885)
-------- ---------
Increase in shares outstanding............................. 317,998 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 additional trustees. On August
5, 1995, the reorganization became effective.

29
<PAGE>

REPORT OF INDEPENDENT ACCOUNTANTS

TO THE SHAREHOLDERS AND BOARD OF TRUSTEES OF
VAN KAMPEN AMERICAN CAPITAL GLOBAL MANAGED ASSETS FUND

In our opinion, the accompanying statement of assets and liabilities, includ-
ing the portfolio of investments, and the related statements of operations and
of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Van Kampen American Capital
Global Managed Assets Fund (the "Fund") at December 31, 1995, and the results
of its operations, the changes in its net assets and the financial highlights
for each of the periods presented, in conformity with generally accepted ac-
counting principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of
the Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these fi-
nancial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable assur-
ance about whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements, assessing the accounting princi-
ples used and significant estimates made by management, and evaluating the
overall financial statement presentation. We believe that our audits, which
included confirmation of securities at December 31, 1995 by correspondence
with the custodian and brokers and the application of alternative auditing
procedures where confirmations from brokers were not received, provide a rea-
sonable basis for the opinion expressed above.

PRICE WATERHOUSE LLP

Houston, Texas
February 15, 1996

30
<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.

31
<PAGE>

VAN KAMPEN AMERICAN CAPITAL GLOBAL MANAGED ASSETS FUND

BOARD OF TRUSTEES
J. MILES BRANAGAN
LINDA HUTTON HEAGY
ROGER HILSMAN
R. CRAIG KENNEDY
DENNIS J. MCDONNELL
DONALD C. MILLER
JACK E. NELSON
DON G. POWELL
JEROME L. ROBINSON
FERNANDO SISTO*
WAYNE W. WHALEN
WILLIAM S. WOODSIDE
*Chairman of the Board

OFFICERS
DON G. POWELL
President and Chief Executive Officer

DENNIS J. MCDONNELL
Executive Vice President

RONALD A. NYBERG
Vice President and Secretary

EDWARD C. WOOD, III
Vice President and Chief Financial Officer

CURTIS W. MORELL
Vice President and Chief Accounting Officer

JOHN L. SULLIVAN
Treasurer

TANYA M. LODEN
Controller

WILLIAM N. BROWN
PETER W. HEGEL
ROBERT C. PECK, JR.
ALAN T. SACHTLEBEN
PAUL R. WOLKENBERG
Vice Presidents

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 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

LEGAL COUNSEL

SKADDEN, ARPS, SLATE,
MEAGHER & FLOM
333 West Wacker Drive
Chicago, Illinois 60806

INDEPENDENT ACCOUNTANTS
PRICE WATERHOUSE LLP
1201 Louisiana
Houston, Texas 77002

TAX NOTICE TO CORPORATE
SHAREHOLDERS

For 1995, 12.23% of the
dividends taxable as ordinary
income qualified for the 70%
dividends received deduction
for corporations.

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. If used for distribution to prospec-
tive investors after 03/31/96, this annual report must be accompanied by Van
Kampen American Capital Global Managed Fund performance data update for the
most recent quarter.