Table of Contents
Letter to Shareholders................................1
Portfolio of Investments..............................2
Statement of Assets and Liabilities...................6
Statement of Operations...............................7
Statement of Changes in Net Assets....................8
Financial Highlights..................................9
Notes to Financial Statements........................10
Report of Independent Accountants....................12
Foreign Securities Fund Management Discussion
For the Period Ended December 31, 1996
During the Fund's first reporting period, primary considerations driving
foreign investment markets included the rate of inflation worldwide, the
anticipated effects of the planned European Monetary Union (EMU), and the
continued weakness of the Japanese economy.
Low inflation rates and slow to moderate economic growth worldwide kept
foreign interest rates fairly stable or trending downward. During the fourth
quarter, most European economies remained somewhat sluggish, with the
exception of the United Kingdom, which is in a more mature stage of economic
recovery. Much of the subdued economic activity in continental Europe can be
attributed to the contradictory fiscal and monetary policies in place as
European economies move toward convergence under EMU agreements.
Japanese interest rates have remained very low due to anemic economic
growth and concerns about the weakening of the Japanese banking system. In
fact, 10-year yields in Japan were below 3.0 percent for much of the period,
and the Japanese stock market (as measured by the Nikkei Index) has lagged
most other global equity markets.
Since its inception on July 1, 1996, through December 31, 1996, the
Fund achieved a total return at net asset value of 4.65 percent. By comparison,
the Morgan Stanley Capital International Europe Australia & Far East Gross
Domestic Product Index (the MSCI EAFE GDP Index) returned 1.38 percent for the
same period. The MSCI EAFE GDP Index is a benchmark for international stock
performance and a GDP-weighted aggregate of 20 individual country indices that
collectively represent many of the major markets of the world, excluding Canada
and the United States.
The Fund's portfolio holds approximately the same country weightings as
the MSCI EAFE GDP Index. Japanese companies represent the largest allocation
at around 24 percent, followed by companies in Germany, France, and the United
Kingdom. The Fund's managers believe that the MSCI EAFE GDP Index is a fair
reflection of the quality of companies within the selected countries.
The investment objective of the Van Kampen American Capital Foreign
Securities Fund is to achieve long-term growth of capital by investing in
an internationally diversified portfolio of equity securities. Stock selection
is based on earnings growth potential and attractive valuation.
Going forward, we are optimistic about the outlook of the Fund. We
anticipate the potential for an acceleration in worldwide economic activity
in early 1997, which should benefit companies that can market strong brands
with high profit margins to active consumers around the world. As growth
accelerates, demand for these products should increase.
1
<TABLE>
Van Kampen American Capital Foreign Securities Fund
Portfolio of Investments
<CAPTION>
December 31, 1996
- ------------------------------------------------------------------------------------------
<S> <C> <C>
Description Shares Market Value
Common and Preferred Stocks and Equivalents 77.1%
Australia 1.3%
CSR Limited 86,000 $ 300,771
Stockland Trust Group 100,000 258,326
------------
559,097
------------
Austria 1.9%
Bbag Oest Brau Bet 6,300 427,622
Creditanstalt Bank 6,500 439,996
------------
867,618
------------
Belgium 1.4%
Electrabel NV 1,000 236,703
Generale De Banque 1,100 394,431
------------
631,134
------------
Denmark 0.6%
Tele Danmark, Series B 5,000 275,854
------------
Finland 0.8%
Nokia AB, Series A - Preferred Stock 6,000 348,000
------------
France 8.2%
Alcatel ALST CGE 3,000 240,995
Carrefour 1,050 683,203
Cie Fin Paribas, Class A 5,000 338,152
Danone 3,800 529,517
Elf Aquitaine 5,500 500,655
LaFarge 5,000 299,990
LVMH Moet Hennessy 1,100 307,199
Michelin CGDE 5,000 269,924
Total, Class B 6,000 488,002
------------
3,657,637
------------
Germany 14.8%
Adidas 2,800 242,007
BASF AG 14,000 539,329
Bayer 17,500 714,193
Bayer Hypo/Wech 15,000 453,763
Bayer Vereinsbk 10,000 410,710
Deutsche Bank AG 10,500 490,609
Dresdner Bank AG 14,000 419,418
Heidelberg Zement 6,000 485,443
Lufthansa AG 34,000 463,998
Man AG 1,300 315,116
Munchener Ruckvers 300 749,610
2 See Notes to Financial Statements
</TABLE>
<TABLE>
Van Kampen American Capital Foreign Securities Fund
Portfolio of Investments (Continued)
<CAPTION>
December 31, 1996
- ------------------------------------------------------------------------------------------
<S> <C> <C>
Description Shares Market Value
Germany (Continued)
Siemens 4,500 $ 212,016
Thyssen AG 2,150 381,433
VEBA AG 12,000 694,047
------------
6,571,692
------------
Hong Kong 0.9%
Hong Kong Telecomm 250,000 402,418
------------
Ireland 0.3%
Allied Irish Banks 20,336 136,469
------------
Italy 6.8%
BCO Ambros Veneto Di Risp 200,000 374,423
Edison 44,000 278,444
Eni S.p.A. 155,000 795,435
Fiat S.p.A. 95,000 287,443
Parmalat Finanz 259,600 397,015
Pirelli S.p.A. 210,000 389,684
Telecom Italia 200,000 519,446
------------
3,041,890
------------
Japan 22.8%
Bank of Tokyo-Mitsubishi 47,000 872,550
Bridgestone Corp. 12,000 227,959
Canon, Inc. 16,000 353,683
Citizen Watch Co. 55,000 394,180
Dai Nippon Printing 13,000 227,873
Dainippon Screen Manufacturing Co., Ltd. 50,000 369,139
Fanuc 9,000 288,317
Fuji Photo Film Co. 10,000 329,851
Furukawa Electric 60,000 284,431
Honda Motor Co. 10,000 285,813
Jusco Co. 12,000 407,219
Kansai Electric Power 26,000 538,813
Kansai Paint Co. 65,000 291,857
Kinki Nippon Railway 25,000 156,075
Mitsubishi Corp. 15,000 155,427
Mitsubishi Gas CHM 110,000 396,080
Mitsui & Co. 22,000 178,568
Nippon Express Co., Ltd. 12,000 82,273
Nomura Securities Co., Ltd. 13,000 195,320
Sakura Bank 65,000 464,727
Shin Etsu Chemical Corp. 26,000 473,707
Shiseido Co. 33,000 381,832
Sony Corp. 8,500 557,076
Sumitomo Bank 27,000 389,345
3 See Notes to Financial Statements
</TABLE>
<TABLE>
Van Kampen American Capital Foreign Securities Fund
Portfolio of Investments (Continued)
<CAPTION>
December 31, 1996
- ------------------------------------------------------------------------------------------
<S> <C> <C>
Description Shares Market Value
Japan (Continued)
Sumitomo Heavy Industries 115,000 $ 349,538
Takeda Chemical Industries 21,000 440,635
Toa Corp. 35,000 183,145
Toyota Motor Corp. 30,000 862,620
------------
10,138,053
------------
Malaysia 0.3%
Telekom Malaysia 15,000 133,637
------------
Netherlands 0.7%
ABN AMRO Holdings NV 5,000 325,514
------------
New Zealand 0.3%
Telecom Corp. of NZ 25,000 127,607
------------
Norway 0.8%
Norsk Hydro AS 6,500 348,047
------------
Singapore 0.6%
Singapore Airlines 31,000 281,355
------------
Spain 3.8%
EMP Nac Electricid 4,700 334,512
Iberdrola SA 30,000 425,188
Telefonica De Espana 27,000 627,036
Union Electric Fenosa 30,000 322,357
------------
1,709,093
------------
Sweden 1.5%
Esselte AB, Series B 13,000 287,834
Trellberg AB, Series B 29,800 395,446
------------
683,280
------------
Switzerland 1.1%
SCHW Bankgesellsch 550 481,995
------------
4 See Notes to Financial Statements
</TABLE>
<TABLE>
Van Kampen American Capital Foreign Securities Fund
Portfolio of Investments (Continued)
<CAPTION>
December 31, 1996
- ------------------------------------------------------------------------------------------
<S> <C> <C>
Description Shares Market Value
United Kingdom 8.2%
Associated British Foods 50,000 $ 413,740
British Airways 47,000 488,359
British Petroleum 35,315 423,514
Cadbury Schweppes 51,026 430,972
Carlton Communications 50,000 438,239
GKN 12,203 209,272
HSBC Holdings 20,196 451,529
MEPC 50,000 371,766
United Utilities 40,000 424,190
------------
3,651,581
------------
Total Long-Term Investments 77.1%
(Cost $31,885,942) (a) 34,371,971
Repurchase Agreement 14.7%
BA Securities ($6,565,000 par collateralized by U.S. Government Obligations
in a pooled cash account, dated 12/31/96, to be sold on 01/02/97 at
$6,567,097) (a) 6,565,000
Foreign Currency 0.1% (Various Denominations)
(Cost $57,567) (a) 57,957
Other Assets in Excess of Liabilities 8.1% 3,569,444
------------
Net Assets 100.0% $ 44,564,342
============
(a) At December 31, 1996, for federal tax purposes cost is $38,916,439; the aggregate gross
unrealized appreciation is $3,486,086 and the aggregate gross unrealized depreciation is
$1,406,237, resulting in net unrealized appreciation on investments, foreign currency and
translation of other assets and liabilities denominated in foreign currencies of $2,079,849.
5 See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
Van Kampen American Capital Foreign Securities Fund
Statement of Assets and Liabilities
December 31, 1996
<S> <C>
ASSETS:
Long-Term Investments, at Market Value (Cost $31,885,942) (Note 1) $ 34,371,971
Repurchase Agreement (Note 1) 6,565,000
Foreign Currency, at Market Value (Cost $57,567) 57,957
Cash 5,111
Receivables:
Securities Sold 9,626,071
Dividends 77,729
Interest 1,048
Unamortized Organizational Expenses (Note 1) 58,663
-----------
Total Assets 50,763,550
-----------
LIABILITIES:
Payables:
Fund Shares Repurchased 6,000,000
Organizational Expenses 65,000
Distributor and Affiliates (Note 2) 1,983
Income Distributions 650
Accrued Expenses 120,381
Deferred Compensation and Retirement Plans (Note 2) 11,194
-----------
Total Liabilities 6,199,208
-----------
NET ASSETS $ 44,564,342
===========
NET ASSETS CONSIST OF:
Capital (Note 3) $ 39,913,364
Net Unrealized Appreciation on Securities 2,487,779
Accumulated Net Realized Gain on Securities 2,218,138
Accumulated Distributions in Excess of Net Investment Income (Note 1) (54,939)
-----------
NET ASSETS $ 44,564,342
===========
Net Asset Value, Offering Price and Redemption Price Per Share (Based
on net assets of $44,564,342 and 4,284,714 shares of beneficial
interest issued and outstanding) $ 10.40
===========
6 See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
Van Kampen American Capital Foreign Securities Fund
Statement of Operations
For the Period July 1, 1996 (Commencement of
Investment Operations) to December 31, 1996
<S> <C>
INVESTMENT INCOME:
Dividends (Net of foreign withholding taxes of $39,076) $ 311,342
Interest 105,322
------------
Total Income 416,664
------------
EXPENSES:
Custody 106,613
Audit 20,850
Trustees Fees and Expenses (Note 2) 18,564
Amortization of Organizational Expenses (Note 1) 6,337
Legal (Note 2) 4,720
Other 6,964
------------
Total Expenses 164,048
------------
NET INVESTMENT INCOME $ 252,616
============
REALIZED AND UNREALIZED GAIN/LOSS ON SECURITIES:
Realized Gain/Loss on Securities:
Investments $ 2,271,305
Foreign Currency Transactions (46,708)
------------
Net Realized Gain on Securities 2,224,597
------------
Unrealized Appreciation/Depreciation on Securities:
Beginning of the Period 0
------------
End of the Period:
Investments 2,486,029
Foreign Currency Translation 1,750
------------
Net Unrealized Appreciation on Securities During the Period 2,487,779
------------
NET REALIZED AND UNREALIZED GAIN ON SECURITIES $ 4,712,376
============
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 4,964,992
============
7 See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
Van Kampen American Capital Foreign Securities Fund
Statement of Changes in Net Assets
For the Period July 1, 1996 (Commencement of
Investment Operations) to December 31, 1996
<S> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income $ 252,616
Net Realized Gain on Securities 2,224,597
Net Unrealized Appreciation on Securities During the Period 2,487,779
------------
Change in Net Assets from Operations 4,964,992
------------
Distributions from Net Investment Income (252,616)
Distributions in Excess of Net Investment Income (Note 1) (61,398)
------------
Distributions from and in Excess of Net Investment Income (314,014)
------------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES 4,650,978
------------
FROM CAPITAL TRANSACTIONS (Note 3):
Proceeds from Shares Sold 80,500,000
Net Asset Value of Shares Issued Through Dividend Reinvestment 313,364
Cost of Shares Repurchased (41,000,000)
------------
NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS 39,813,364
------------
TOTAL INCREASE IN NET ASSETS 44,464,342
NET ASSETS:
Beginning of the Period 100,000
------------
End of the Period (Including accumulated distributions in excess of net
investment income of $54,939) $ 44,564,342
============
8 See Notes to Financial Statements
</TABLE>
<TABLE>
Van Kampen American Capital Foreign Securities Fund
Financial Highlights
The following schedule presents financial highlights for one share
of the Fund outstanding throughout the period indicated.
<CAPTION>
July 1, 1996
(Commencement
of Investment
Operations) to
December 31, 1996
- ---------------------------------------------------------------------------------------------
<S> <C>
Net Asset Value, Beginning of the Period $ 10.000
------------
Net Investment Income .052
Net Realized and Unrealized Gain on Securities .413
------------
Total from Investment Operations .465
Less Distributions from and in Excess of Net Investment Income (Note 1) .065
------------
Net Asset Value, End of the Period $ 10.400
============
Total Return 4.65%*
Net Assets at End of the Period (In millions) $44.6
Ratio of Expenses to Average Net Assets 0.45%
Ratio of Net Investment Income to Average Net Asets 0.70%
Portfolio Turnover 76%*
Average Commission Paid Per Equity Share Traded (a) $.0149
* Non-Annualized
(a) Represents the average brokerage commission paid per equity share traded during the
period for trades where commissions were applicable.
9 See Notes to Financial Statements
</TABLE>
Van Kampen American Capital Foreign Securities Fund
Notes to Financial Statements
December 31, 1996
1. Significant Accounting Policies
Van Kampen American Capital Foreign Securities Fund (the "Fund")
is organized as a Delaware business trust, and is registered as
a diversified open-end management investment company under the
Investment Company Act of 1940, as amended. The Fund's
investment objective is to provide long-term growth of capital
through investments in an internationally diversified portfolio
of equity securities of companies of any country. The Fund
commenced investment operations on July 1, 1996.
The following is a summary of significant accounting
policies consistently followed by the Fund in the preparation of
its financial statements. The preparation of financial
statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could
differ from those estimates.
A. Security Valuation - Investments in securities listed on a
securities exchange are valued at their sales price as of the
close of such securities exchange. Unlisted securities and
listed securities for which the last sales price is not
available are valued at the last bid price. For those
securities where quotations or prices are not available,
valuations are determined in accordance with the procedures
established in good faith by the Board of Trustees. Short-term
securities with remaining maturities of 60 days or less are
valued at amortized cost.
B. Security Transactions - Security transactions are recorded
on a trade date basis. Realized gains and losses are determined
on an identified cost basis.
The Fund may invest in repurchase agreements which are
short-term investments in which the Fund acquires ownership of a
debt security and the seller agrees to repurchase the security
at a future time and specific price. The Fund may invest
independently in repurchase agreements, or transfer uninvested
cash balances into a pooled cash account along with other
investment companies advised by Van Kampen American Capital
Investment Advisory Corp. (the "Adviser") or its affiliates, the
daily aggregate of which is invested in repurchase agreements.
Repurchase agreements are fully collateralized by the underlying
debt security. The Fund will make payment for such securities
only upon physical delivery or evidence of book entry transfer
to the account of the custodian bank. The seller is required to
maintain the value of the underlying security at not less than
the repurchase proceeds due to the Fund.
C. Investment Income - Dividend income is recorded on the
ex-dividend date and interest income is recorded on an accrual
basis.
D. Currency Translation - Assets and liabilities denominated in
foreign currencies are translated into U.S. dollars based on
quoted exchange rates as of noon Eastern Time. Purchases and
sales of portfolio securities are translated at the rate of
exchange prevailing when such securities were acquired or sold.
Income and expenses are translated at rates prevailing when
accrued.
E. Organizational Expenses - The Fund will reimburse Van
Kampen American Capital Distributors, Inc. or its affiliates
(collectively "VKAC") for costs incurred in connection with the
Fund's organization in the amount of $65,000. These costs are
being amortized on a straight line basis over the 60 month
period ending June 30, 2001. The Adviser has agreed that in the
event any of the initial shares of the Fund originally purchased
by VKAC are redeemed during the amortization period, the Fund
will be reimbursed for any unamortized organizational expenses
in the same proportion as the number of shares redeemed bears to
the number of initial shares held at the time of redemption.
F. Federal Income Taxes - It is the Fund's policy to comply
with the requirements of the Internal Revenue Code applicable to
regulated investment companies and to distribute substantially
all of its taxable income and gains to its shareholders.
Therefore, no provision for federal income taxes is required.
Net realized gains or losses may differ for financial
reporting and tax purposes as a result of the deferral of losses
for tax purposes resulting from wash sales.
G. Distribution of Income and Gains - The Fund declares and pays
dividends annually from net investment income and net realized
gains on securities, if any.
Due to inherent differences in the recognition of
income, expense and realized gains/losses under generally
accepted accounting principles and for federal income tax
purposes, the amount of distributed net investment income may
differ for a particular period. These differences are temporary
in nature, but may result in book basis distribution in excess
of net investment income for certain periods.
Permanent differences between book and tax basis reporting for
the 1996 fiscal year have been identified and appropriately
reclassified. Net permanent differences relating to net
currency losses and the character of shareholder distributions
totaling $6,459 were reclassified from accumulated undistributed
net investment income to accumulated realized gain/loss on
securities.
10
Van Kampen American Capital Foreign Securities Fund
Notes to Financial Statements
December 31, 1996 (Continued)
2. Investment Advisory Agreement and Other Transactions with
Affiliates
The Adviser serves as the investment manager of the Fund, but
receives no compensation for its investment management services.
Certain legal expenses are paid to Skadden, Arps, Slate,
Meagher & Flom (Illinois), counsel to the Fund, of which a
trustee of the Fund is an affiliated person.
For the period ended December 31, 1996, the Fund
recognized expenses of approximately $2,100, representing
VKAC's cost of providing accounting services to the Fund.
ACCESS Investor Services, Inc. ("ACCESS"), an affiliate of
the Adviser, serves as the shareholder servicing agent for the
Fund. For the period ended December 31, 1996, ACCESS has waived
all fees for transfer agency and shareholder services provided.
Certain officers and trustees of the Fund are also
officers and directors of VKAC. The Fund does not compensate
its officers or trustees who are officers of VKAC.
The Fund has implemented deferred compensation and
retirement plans for its trustees. Under the deferred
compensation plan, trustees may elect to defer all or a portion
of their compensation to a later date. The retirement plan
covers those trustees who are not officers of VKAC.
At December 31, 1996, the Fund was owned by VKAC
(10,000 shares representing 0.2% of outstanding shares) and
three investment companies advised by VKAC; Common Sense Trust
Growth Fund (52.2% of outstanding shares), Common Sense Trust
Growth and Income Fund (2.0% of outstanding shares) and Van
Kampen American Capital Pace Fund (45.6% of outstanding shares).
3. Capital Transactions
The Fund is authorized to issue an unlimited number of shares of
beneficial interest with a par value of $.01 per share. Fund
shares are only available for purchase by Funds for which VKAC
serves as investment adviser.
At December 31, 1996, capital aggregated $39,913,364.
Transactions in common shares were as follows:
Period Ended
December 31,
1996
============
Beginning Shares 10,000
------------
Shares Sold 8,206,435
Shares Issued Through 30,102
Dividend Reinvestment
Shares Redeemed (3,961,823)
------------
Net Increase in Shares 4,274,714
Outstanding ------------
Ending Shares 4,284,714
============
4. Investment Transactions
During the period, the cost of purchases and proceeds from sales
of investments, excluding short-term investments, were
$80,500,166 and $50,885,448, respectively.
11
Report of Independent Accountants
The Board of Trustees and Shareholders of
Van Kampen American Capital Foreign Securities Fund:
We have audited the accompanying statement of assets and liabilities of Van
Kampen American Capital Foreign Securities Fund (the "Fund"), including the
portfolio of investments, as of December 31, 1996, and the related statement
of operations, the statement of changes in net assets, and the financial
highlights for the period from July 1, 1996 (commencement of investment
operations) to December 31, 1996. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial
highlights based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1996, by correspondence with the
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Van Kampen American Capital Foreign Securities Fund as of December 31,
1996, the results of its operations, the changes in its net assets and
financial highlights for the period from July 1, 1996 (commencement of
investment operations) to December 31, 1996, in conformity with generally
accepted accounting principles.
Chicago, Illinois
February 12, 1997
12
Result of Shareholder Votes
A Special Meeting of Shareholders of the Fund was held on
October 25, 1996, where shareholders voted on a new investment
advisory agreement, changes to investment policies and the
ratification of KPMG Peat Marwick LLP as independent
accountants. With regard to the approval of a new investment
advisory agreement between Van Kampen American Capital
Investment Advisory Corp. and the Fund, all shares voted for the
proposal and no shares voted against or abstained. With regard
to the approval of certain changes to the Fund's fundamental
investment policies with respect to investment in other
investment companies, all shares voted for the proposal and no
shares voted against or abstained. With regard to the
ratification of KPMG Peat Marwick LLP as independent public
accountants for the Fund, all shares voted for the proposal and
no shares voted against or abstained.
13
Van Kampen American Capital
Foreign Securities Fund
Board of Trustees Investment Adviser
J. Miles Branagan Van Kampen American Capital
Linda Hutton Heagy Investment Advisory Corp.
R. Craig Kennedy One Parkview Plaza
Dennis J. McDonnell* Oakbrook Terrace, Illinois 60181
Jack E. Nelson
Jerome L. Robinson Distributor
Fernando Sisto
Wayne W. Whalen* - Chairman Van Kampen American Capital
Distributors, Inc.
One Parkview Plaza
Officers Oakbrook Terrace, Illinois 60181
Dennis J. McDonnell*
President Shareholder Servicing Agent
Ronald A. Nyberg* ACCESS Investor
Vice President and Secretary Services, Inc.
P.O. Box 418256
Edward C. Wood, III* Kansas City, Missouri 64141-9256
Vice President and Chief
Financial Officer Custodian
Curtis W. Morell* State Street Bank and Trust Company
Vice President and Chief 225 Franklin Street
Accounting Officer P.O. Box 1713
Boston, Massachusetts 02105
John L. Sullivan*
Treasurer Legal Counsel
Tanya M. Loden* Skadden, Arps, Slate, Meagher
Controller & Flom (Illinois)
333 West Wacker Drive
Peter W. Hegel* Chicago, Illinois 60606
Alan T. Sachtleben*
Paul R. Wolkenberg* Independent Accountants
Vice Presidents
KPMG Peat Marwick LLP
Peat Marwick Plaza
303 East Wacker Drive
Chicago, IL 60601
*"Interested" persons of the Fund as defined in the Investment
Company Act of 1940
Van Kampen American Capital Distributors, Inc., 1997
All rights reserved.
sm denotes a service mark of Van Kampen American
Capital Distributors, Inc.
14
