Federal Register, Volume 61 Issue 21 (Wednesday, January 31, 1996)

[Federal Register Volume 61, Number 21 (Wednesday, January 31, 1996)]
[Notices]
[Pages 3518-3519]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-1784]



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SECURITIES AND EXCHANGE COMMISSION
[Investment Company Act Rel. No. 21705; 812-9862]


Van Kampen American Capital Bond Fund, Inc., et al.; Notice of 
Application

January 24, 1996.
AGENCY: Securities and Exchange Commission (``SEC'').

ACTION: Notice of Application for Exemption under the Investment 
Company Act of 1940 (the ``Act'').

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APPLICANTS: Van Kampen American Capital Bond Fund, Inc., Van Kampen 
American Capital Comstock Fund, Van Kampen American Capital Convertible 
Securities, Inc., Van Kampen American Capital Corporate Bond Fund, Van 
Kampen American Capital Emerging Growth Fund, Van Kampen American 
Capital Enterprise Fund, Van Kampen American Capital Equity Income 
Fund, American Capital Exchange Fund, Van Kampen American Capital 
Global Managed Assets Fund, Van Kampen American Capital Government 
Securities Fund, Van Kampen American Capital Government Target Fund 
(``Target''), Van Kampen American Capital Growth and Income Fund, Van 
Kampen American Capital Harbor Fund, Van Kampen American Capital High 
Income Corporate Bond Fund, Van Kampen American Capital Income Trust, 
Van Kampen American Capital Life Investment Trust, Van Kampen American 
Capital Limited Maturity Government Fund, Van Kampen American Capital 
Pace Fund, Van Kampen American Capital Real Estate Securities Fund, Van 
Kampen American Capital Reserve Fund, Van Kampen American Capital Small 
Capitalization Fund, Van Kampen American Capital Tax-Exempt Trust, Van 
Kampen American Capital Texas Tax Free Income Fund, Van Kampen American 
Capital U.S. Government Trust for Income, Van Kampen American Capital 
World Portfolio Series Trust, Common Sense Trust (referred to herein 
collectively as the ``Original Funds''); Van Kampen American Capital 
U.S. Government Trust, Van Kampen American Capital Tax Free Trust, Van 
Kampen American Capital Trust, Van Kampen American Capital Equity 
Trust, Van Kampen American Capital Tax Free Money Fund (referred to 
herein collectively as the ``New Funds''); each portfolio of the 
foregoing, and any future portfolios thereof; any other open-end 
management investment companies established or acquired in the future 
that are in the same ``group of investment companies'' with any of the 
above as that term is defined in rule 11a-3 under the Act; any other 
closed-end investment company established or acquired in the future 
that is advised or subadvised by Van Kampen American Capital Asset 
Management, Inc. (``VKACAM'') or Van Kampen American Capital Investment 
Advisory Corp. (``Advisory Corp.''); and VKACAM and Advisory Corp. (the 
New Funds and Advisory Corp. are referred to herein collectively as the 
``New Applicants'').

RELEVANT ACT SECTION: Exemption requested under rule 17d-1 to permit 
certain joint transactions in accordance with section 17(d) and rule 
17d-1 thereunder.

SUMMARY OF APPLICATION: Applicants seek to amend a prior order that 
permits the applicants thereunder to operate a joint trading account in 
repurchase agreements by adding the New Funds and Advisory Corp. as 
applicants.

FILING DATES: The application was filed on November 29, 1995 and 
amended on January 16, 1996.

HEARING OR NOTIFICATION OF HEARING: An order granting the application 
will be issued unless the SEC orders a hearing. Interested persons may 
request a hearing by writing to the SEC's Secretary and serving 
applicants with a copy of the request, personally or by mail. Hearing 
requests should be received by the SEC by 5:30 p.m. on February 20, 
1996, and should be accompanied by proof of service on the applicants, 
in the form of an affidavit or, for lawyers, a certificate of service. 
Hearing requests should state the nature of the write's interest, the 
reason for the request, and the issues contested. Persons who wish to 
be notified of a hearing may request such notification by writing to 
the SEC's Secretary.

ADDRESSES: Secretary, SEC, 450 Fifth Street NW., Washington, D.C. 
20549. Applicants, 2800 Post Oak Blvd., Houston, Texas 77056.

FOR FURTHER INFORMATION CONTACT: Mary Kay Frech, Senior Staff Attorney 
at (202) 942-0579, or Alison E. Baur, Branch Chief, at (202) 942-0564 
(Division of Investment Management, Office of Investment Company 
Regulation).

SUPPLEMENTARY INFORMATION: The following is a summary of the 
application. The complete application may be obtained for a fee from 
the SEC's Public Reference Branch.

Applicants' Representations

    1. On May 9, 1991, the Commission issued an order (the ``Original 
Order'') \1\ that permits the Original Funds, other than Target, to 
operate a joint trading account in repurchase agreements. The Original 
Order was amended on January 13, 1993 to add Target as an additional 
applicant.\2\ Each of the Original Funds and the New Funds is a 
registered investment company. VKACAM is the investment adviser to each 
of the Original Funds. Advisory Corp. is the investment adviser to each 
of the New Funds. Advisory Corp. and VKACAM are both wholly owned 
subsidiaries of Van Kampen American Capital, Inc., and are, therefore, 
affiliated persons. The New Applicants consent to the procedures set 
forth in the application filed in connection with the Original Order 
and agree to be bound by the Original Order's terms and provisions to 
the same extent as the other applicants.\3\

    \1\ Investment Company Act Release Nos. 18089 (April 10, 1991) 
(notice) and 18142 (May 9, 1991) (order).
    \2\ Investment Company Act Release Nos. 19167 (Dec. 18, 1992) 
(notice) and 19212 (Jan. 13, 1993) (order).
    \3\ Applicants also request that relief be granted to other 
existing open-end and closed-end investment companies advised by 
VKACAM or Advisory Corp. that currently do not intend to rely on the 
requested relief and are not named as applicants in the application, 
but that in the future may wish to rely on the requested relief, 
provided that they determine to participate in the joint trading 
account in accordance with the procedures set forth in the 
application filed in connection with the Original Order and agree to 
be bound by its terms and provisions to the same extent as the other 
Applicants.
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    2. On December 20, 1994, American Capital Management & Research, 
Inc., VKACAM's former parent, was merged into the Van Kampen Merritt 
Companies Inc., Advisory Corp.'s former parent, to form Van Kampen 
American Capital, Inc. The New Applicants are seeking to 

[[Page 3519]]
have the exemptive relief granted under the Original Order, as amended, 
extended to include them so that they may also participate in the joint 
trading account used by the other applicants. In so doing, the 
advantages and benefits associated with the joint account would be 
extended to the New Applicants, and the other current applicants could 
also gain incremental benefits that may result from having even larger 
sums to invest in repurchase agreements. Because VKACAM and Advisory 
Corp. are under common control, they can easily coordinate their 
efforts in investing the available cash balances of the funds they 
advise and ensure compliance with the procedures and conditions 
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specified in the Original Order.

    For the SEC, by the Division of Investment Management, under 
delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-1784 Filed 1-30-96; 8:45 am]
BILLING CODE 8010-01-M