<PAGE> 1
TABLE OF CONTENTS
<TABLE>
<S> <C>
Letter to Shareholders......................... 1
Performance Results............................ 3
Performance in Perspective..................... 4
Glossary of Terms.............................. 5
Portfolio Management Review.................... 6
Portfolio Highlights........................... 9
Portfolio of Investments....................... 10
Statement of Assets and Liabilities............ 15
Statement of Operations........................ 16
Statement of Changes in Net Assets............. 17
Financial Highlights........................... 18
Notes to Financial Statements.................. 21
Report of Independent Accountants.............. 28
</TABLE>
ENT ANR 2/99
<PAGE> 2
LETTER TO SHAREHOLDERS
January 20, 1999
Dear Shareholder,
The past decade has been a remarkable time for investors. Together, we've
witnessed one of the greatest bull markets in investment history, unprecedented
growth in mutual fund investing, and a surge in personal retirement planning.
The coming millennium promises to hold even more opportunities.
To lead us into this new era of investing, Richard F. Powers III has joined
Van Kampen as Chairman and Chief Executive Officer. He comes to us from our
parent company, Morgan Stanley Dean Witter & Co., where he served as Executive
Vice President and Director of Marketing. He brings 27 years of experience in
the financial services industry, including an extensive background in product
management, strategic planning and brand development.
Although former Chairman Don G. Powell retired on January 1, he will remain
active in the industry and the community. Mr. Powell plans to continue his
service as a member of the board of directors of the Investment Company
Institute, the leading mutual fund industry association, and he will remain a
trustee of your fund.
ECONOMIC OVERVIEW
Despite a stormy year in the global economy, the United States ended 1998
with only a moderate slowdown in growth. The nation's gross domestic product, a
measure of economic health, grew 3.9 percent during the year, matching 1997's
growth rate and indicating that our nation's economy remains strong. A
continuation of low inflation--only a 1.6 percent increase in the consumer price
index over the last 12 months--also helped sustain the domestic economy and kept
inflation-adjusted interest rates attractive.
Although the year ended on a positive note, the economic environment was
quite unsettled in the third quarter, with the Asian financial crisis
contributing to slowing corporate profits in the United States. Given the
uncertainty surrounding emerging market nations and the near-collapse of a major
U.S. hedge fund, the stock and bond markets experienced significant volatility
during this period. With instability as a backdrop, American and foreign
investors alike pursued a flight to quality--seeking the relative safety of
large-company stocks and government bonds.
In the last few months of the year the global financial situation improved
in conjunction with the Federal Reserve's interest rate decreases. In response
to declining corporate profits and mounting international concerns, the Fed
lowered interest rates three times, with 0.25 percent cuts in September,
October, and November. These rate cuts, coupled with a wave of corporate mergers
and cost-cutting measures, lent the support needed to keep the economy growing.
Dozens of foreign central banks also reduced interest rates in an effort to
stimulate their economies. These actions gave a boost to investor confidence and
encouraged a return to a more diversified range of investments in the last few
months of the year.
Continued on page 2
1
<PAGE> 3
MARKET REVIEW
Despite bouts of volatility, the stock market experienced impressive returns
during 1998. Large-company stocks were responsible for much of this as investors
favored the perceived stability of established, high-quality companies. The Dow
Jones Industrial Average rose more than 16 percent during the year and hit a
record high of 9374 in November before falling back to more moderate levels.
Technology companies generally fared well during the year, with the
technology-heavy Nasdaq composite index up almost 40 percent for the year. On
the other hand, commodity-based stocks--especially those of oil
companies--suffered from declining commodity prices. Small-company stocks also
significantly underperformed the rest of the market, with the Russell 2000 index
actually losing 3.45 percent during the 12-month period.
OUTLOOK
Our outlook for the domestic economy is positive, and we anticipate
continued low inflation and healthy economic growth. However, the aftereffects
of the global economic slowdown may continue to put pressure on corporate
earnings in the first half of the year. Internationally, we anticipate that low
interest rates and declining inflation will lead to improvements in troubled
areas such as Asia and Latin America. With the successful launch of the euro,
the new European transnational currency, we believe that many foreign markets
will become increasingly attractive in 1999.
In the long term, we are optimistic that the stock market will continue its
record growth, although we could experience additional volatility in the months
ahead if concerns about high stock valuations and increasing earnings pressure
become more pronounced. Combined with growing questions about corporate and
government reactions to the Year 2000 computer problem, we could see an
increasingly cautious market by mid-year.
Additional details about your fund, including a question-and-answer section
with your portfolio management team, are provided in this report. As always, we
are pleased to have the opportunity to share with you the progress of your
investment.
Sincerely,
[SIG.]
Richard F. Powers III
Chairman
Van Kampen Asset Management Inc.
[SIG.]
Dennis J. McDonnell
President
Van Kampen Asset Management Inc.
2
<PAGE> 4
PERFORMANCE RESULTS FOR THE PERIOD ENDED DECEMBER 31, 1998
VAN KAMPEN ENTERPRISE FUND
<TABLE>
<CAPTION>
A SHARES B SHARES C SHARES
<S> <C> <C> <C>
TOTAL RETURNS
One-year total return based on NAV(1).... 23.56% 22.65% 22.65%
One-year total return(2)................. 16.47% 17.65% 21.65%
Five-year average annual total
return(2)................................ 19.83% 20.13% 20.32%
Ten-year average total return(2)......... 18.08% N/A N/A
Life-of-Fund average annual total
return(2)................................ 13.60% 18.42% 19.79%
Commencement date........................ 01/07/54 12/20/91 07/20/93
</TABLE>
N/A = Not Applicable
(1)Assumes reinvestment of all distributions for the period and does not include
payment of the maximum sales charge (5.75% for A shares) or contingent deferred
sales charge for early withdrawal (5% 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 contingent
deferred sales charge for early withdrawal (B and C shares).
See the Prior Performance section of the current prospectus. An investment
should be made with an understanding of the risks that an investment in equity
securities entails. These include the risk that the financial condition of the
issuers of the securities in the portfolio, or the condition of the stock market
in general, may worsen and therefore, the value of Fund shares may decline. Past
performance does not guarantee future results. Investment return and net asset
value will fluctuate with market conditions. Market volatility may have
adversely affected fund performance since December 31, 1998. Fund shares, when
redeemed, may be worth more or less than their original cost.
Because the prices of common stocks and other securities fluctuate, the value of
an investment in the Fund will vary upon the Fund's investment performance.
Foreign securities may magnify volatility due to changes in foreign exchange
rates, the political and economic uncertainties in foreign countries, and the
potential lack of liquidity, government supervision, and regulation.
Market forecasts provided in this report may not necessarily come to pass.
3
<PAGE> 5
PUTTING YOUR FUND'S PERFORMANCE IN PERSPECTIVE
As you evaluate your progress toward achieving your financial goals, it is
important to track your investment performance at regular intervals. A
comparison of your Fund's performance to an applicable benchmark can:
- Illustrate the market environment in which your Fund is being managed
- Reflect the impact of favorable market trends or difficult market
conditions
- Help you evaluate how your Fund's management team has responded to the
opportunities and challenges
The following graph compares your Fund's performance to that of the Standard
& Poor's 500-Stock Index and the Lipper Growth Fund Index over time. These
indices are broad-based, statistical composites that do not include any
commissions or sales charges that would be paid by an investor purchasing the
securities they represent.
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
Van Kampen Enterprise Fund vs. the Standard & Poor's 500-Stock Index and the
Lipper Growth Fund Index (December 31, 1988 through December 31, 1998)
[GRAPH]
<TABLE>
<CAPTION>
STANDARD & POOR'S 500-
VAN KAMPEN ENTERPRISE FUND STOCK INDEX LIPPER GROWTH FUND INDEX
-------------------------- ---------------------- ------------------------
<S> <C> <C> <C>
Dec 1988 9425.00 10000.00 10000.00
10192.00 10711.00 10662.00
9982.00 10401.00 10524.00
10292.00 10708.00 10784.00
10940.00 11244.00 11362.00
11524.00 11639.00 11863.00
11241.00 11651.00 11700.00
12108.00 12680.00 12521.00
12308.00 12877.00 12821.00
12249.00 12896.00 12854.00
11893.00 12572.00 12452.00
12158.00 12780.00 12625.00
Dec 1989 12363.00 13159.00 12747.00
11483.00 12253.00 11892.00
11762.00 12358.00 12090.00
12148.00 12761.00 12407.00
11880.00 12418.00 12080.00
13168.00 13560.00 13229.00
13095.00 13560.00 13243.00
12929.00 13489.00 13012.00
11724.00 12217.00 11816.00
11028.00 11705.00 11066.00
10896.00 11627.00 10854.00
11647.00 12324.00 11650.00
Dec 1990 12008.00 12749.00 12057.00
12767.00 13278.00 12868.00
13738.00 14172.00 13817.00
14195.00 14594.00 14149.00
14078.00 14599.00 14183.00
14726.00 15162.00 14803.00
13888.00 14562.00 13932.00
14670.00 15216.00 14793.00
15162.00 15515.00 15218.00
14961.00 15340.00 15104.00
15363.00 15522.00 15353.00
14715.00 14840.00 14708.00
Dec 1991 16719.00 16617.00 16437.00
16598.00 16286.00 16412.00
16888.00 16442.00 16704.00
16247.00 16199.00 16178.00
16231.00 16651.00 16154.00
16428.00 16667.00 16327.00
15974.00 16507.00 15859.00
16452.00 17157.00 16382.00
16072.00 16745.00 16015.00
16477.00 17027.00 16263.00
16857.00 17063.00 16552.00
17679.00 17580.00 17406.00
Dec 1992 18121.00 17881.00 17692.00
18423.00 18007.00 17945.00
18207.00 18196.00 17710.00
18824.00 18659.00 18217.00
18103.00 18185.00 17725.00
18879.00 18598.00 18428.00
18983.00 18748.00 18486.00
19028.00 18648.00 18464.00
19744.00 19290.00 19249.00
19997.00 19230.00 19373.00
19803.00 19603.00 19694.00
19132.00 19350.00 19294.00
Dec 1993 20107.00 19675.00 19811.00
20715.00 20314.00 20497.00
20501.00 19704.00 20160.00
19465.00 18935.00 19218.00
19854.00 19153.00 19372.00
19838.00 19391.00 19465.00
19045.00 19016.00 18798.00
19425.00 19615.00 19331.00
20366.00 20353.00 20155.00
19953.00 19946.00 19721.00
20580.00 20362.00 20096.00
19656.00 19558.00 19331.00
Dec 1994 20069.00 19942.00 19500.00
20104.00 20426.00 19571.00
21070.00 21163.00 20294.00
21737.00 21878.00 20909.00
22162.00 22490.00 21501.00
22995.00 23306.00 22152.00
24253.00 23959.00 23147.00
25741.00 24721.00 24266.00
26060.00 24713.00 24522.00
26698.00 25858.00 25250.00
25918.00 25729.00 24915.00
26662.00 26785.00 25758.00
Dec 1995 26877.00 27409.00 25867.00
27740.00 28303.00 26492.00
28666.00 28500.00 26908.00
28851.00 28879.00 27032.00
29831.00 29267.00 27710.00
30745.00 29936.00 28201.00
29997.00 30172.00 27926.00
28170.00 28791.00 26416.00
29188.00 29333.00 27213.00
31450.00 31097.00 28734.00
31990.00 31910.00 29148.00
34045.00 34251.00 30990.00
Dec 1996 33189.00 33686.00 30402.00
35494.00 35752.00 31987.00
35384.00 35964.00 31741.00
33247.00 34595.00 30288.00
34832.00 36616.00 31620.00
37199.00 38761.00 33808.00
38651.00 40622.00 35072.00
42313.00 43795.00 37979.00
41196.00 41279.00 36576.00
43786.00 43660.00 38667.00
41598.00 42154.00 37418.00
42379.00 44034.00 38278.00
Dec 1997 42664.00 44909.00 38925.00
42615.00 45365.00 39182.00
46485.00 48560.00 41944.00
49052.00 51160.00 43737.00
49695.00 51624.00 44205.00
47840.00 50652.00 43122.00
49818.00 52844.00 44986.00
48582.00 52230.00 44508.00
39899.00 44615.00 37362.00
42299.00 47598.00 39852.00
44995.00 51419.00 42611.00
47666.00 54460.00 45150.00
Dec 1998 52714.00 57717.00 48924.00
</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 and includes payment of the maximum
sales charge (5.75% for A shares).
While past performance is not indicative of future performance, the above
information provides a broader vantage point from which to evaluate the
discussion of the Fund's performance found in the following pages.
Fund's Total Return
1 Year Avg. Annual = 16.47%
5 Year Avg. Annual = 19.83%
10 Year Avg. Annual = 18.08%
4
<PAGE> 6
GLOSSARY OF TERMS
BOTTOM-UP INVESTING: A management style that emphasizes the analysis of
individual stocks, rather than economic and market cycles.
CLASS A SHARES: When Class A shares of a fund are purchased, the share price
includes the net asset value plus a one-time sales charge (or "load"). In
most cases, there is no redemption fee (contingent deferred sales charge).
DOW JONES INDUSTRIAL AVERAGE: The oldest and most widely recognized stock market
average, which reflects the performance of 30 actively traded stocks of
well-established, blue-chip companies.
FEDERAL RESERVE BOARD (THE FED): The governing body of the Federal Reserve
System, which is the central bank system of the United States. Its
policy-making committee, called the Federal Open Market Committee, meets
eight times a year to establish monetary policy and monitor the economic
pulse of the United States.
FUNDAMENTALS: Characteristics of a company, such as revenue growth, earnings
growth, financial strength, market share, and quality of management.
HEDGE FUND: A fund, usually used by wealthy individuals and institutions, that
is allowed to use aggressive strategies that are unavailable to most mutual
funds.
INFLATION: A persistent and measurable rise in the general level of prices.
Inflation is widely measured by the Consumer Price Index, an economic
indicator that measures the change in the cost of purchased goods and
services.
NET ASSET VALUE (NAV): The value of a mutual fund share, calculated by deducting
a fund's liabilities from the total assets in its portfolio and dividing
this amount by the number of shares outstanding. The NAV does not include
any initial or contingent deferred sales charge.
STANDARD & POOR'S 500-STOCK INDEX: A broad-based measurement of changes in
stock-market conditions based on the average performance of 500 widely held
common stocks. The index, which tracks industrial, transportation,
financial, and utility stocks, provides a guide to the overall health of the
U.S. stock market. The S&P 500 is a much broader index than the Dow Jones
Industrial Average and reflects the stock market more accurately.
VALUATION: The estimated or determined worth of a stock, based on financial
measures such as the stock's current price relative to earnings, revenue,
book value, and cash flow.
VOLATILITY: A measure of the fluctuation in the market price of a security. A
security that is volatile has frequent and large swings in price.
5
<PAGE> 7
PORTFOLIO MANAGEMENT REVIEW
VAN KAMPEN ENTERPRISE FUND
We recently spoke to the management team of the Van Kampen Enterprise Fund about
the key events and economic forces that shaped the markets during the past 12
months. The team includes Jeff D. New, portfolio manager; Michael Davis and Mary
Jayne Maly, portfolio comanagers; and Stephen L. Boyd, chief investment officer
for equity investments. The following excerpts reflect their views on the Fund's
performance during the 12 months ended December 31, 1998.
Q THE STOCK MARKET WAS UP, DOWN, AND UP AGAIN IN 1998. CAN YOU DESCRIBE SOME
OF THE FACTORS THAT AFFECTED THE MARKET DURING THE REPORTING PERIOD?
A For the year overall, the market benefited from low inflation and new cash
flows into stocks. The stock market performed extremely well through
mid-July, when the Dow Jones Industrial Average set a then-record high.
Trouble was on the horizon, however, as the markets feared that many U.S.
companies would announce earnings problems resulting from exposure to lagging
international economies. Investors became increasingly concerned after severe
economic problems in Russia and the near-failure of a large hedge fund
threatened financial stability. By August 31 the Dow had fallen 19 percent from
its high.
Beginning in October conditions began to improve. Inflation remained tame,
enabling the Federal Reserve Board to lower interest rates in September and then
again in October and November. By October, companies began to report
better-than-expected third-quarter earnings, reminding investors that the U.S.
economy, though slowing, was still fundamentally solid. The volatile stock
market began to rise again, with the Dow setting a new record in November before
declining modestly from its high by year end.
Q DID MARKET VOLATILITY LEAD YOU TO CHANGE YOUR MANAGEMENT STRATEGY FOR THE
FUND?
A No. If anything, we were more disciplined in applying our strategy because
slowing economic conditions meant that fewer companies met our criteria of
promising future fundamentals and attractive current prices. By our
definition, promising future fundamentals include at least one of the following
traits: consistent earnings growth; accelerating earnings growth;
better-than-expected fundamentals; or an underlying change in a company,
industry, or regulatory environment. We evaluate stocks from the "bottom up"--in
other words, on a company-by-company basis. Because our investment approach has
served the Fund well through a broad range of economic conditions, we weren't
tempted to change our strategy during the past 12 months.
Q WHAT ARE SOME OF THE COMPANIES THAT MET YOUR CRITERIA?
A Technology stocks performed very well in 1998, and we focused on a number
of tech stocks that are key players in their industries. Cisco Systems,
which
6
<PAGE> 8
specializes in computer networking and is a beneficiary of the Internet's
increased popularity, was a significant holding in the Fund, as was Compuware, a
major software and services company. In August we added a sizeable position in
America Online, the dominant Internet service provider. Other technology
companies that met our investment discipline were EMC Corp., which creates data
storage products, and Oracle, the market leader in database software. All of
these firms were extremely successful holdings for the Fund during the reporting
period.
We had a higher-than-usual exposure to retail stocks, which generally helped
the Fund last year. Retail companies have tended to do well in periods of low
unemployment and high consumer spending. Although these companies were hit hard
during the third quarter, their excellent performance in the first two quarters
was accompanied by a healthy rebound in the fourth. Retailers such as Safeway
(supermarket), Lowe's (building supply), Dayton Hudson (general merchandise
retailer), and Wal-Mart (discount retailer) were among the Fund's biggest
successes last year.
Stocks within the telecommunications, cable, and entertainment industries
have typically performed well in a volatile stock market because they generally
produce consistent earnings and attractive growth rates. As such, companies such
as SBC Communications, U.S. West, and Time Warner handily outperformed the
market and helped the Fund in 1998.
Of course, not all of the stocks in the Fund performed as favorably, nor is
there any guarantee that any of these stocks will perform as well in the future.
For additional Fund portfolio highlights, please turn to page 9.
Q SIX MONTHS AGO, YOU MENTIONED THAT PHILIP MORRIS HAD HURT THE FUND'S
PERFORMANCE. HOW HAS IT FARED SINCE THEN?
A By the year's end, the markets rewarded our patience with Philip Morris.
Despite struggling in the first half of the year, in the last six months
of 1998 Philip Morris stock rose 36 percent compared to 9 percent for the
Standard & Poor's 500-Stock Index. The stock's strong second-half performance
resulted from investors' favorable reaction to the settlement of numerous
lawsuits by state governments against the company and other tobacco
manufacturers.
Q WHICH STOCKS HURT THE FUND'S PERFORMANCE?
A Some health care stocks, such as large pharmaceutical and generic-drug
manufacturers, performed well in 1998. However, companies in the health
care--service area--including hospitals and rehabilitation companies--had
a particularly negative impact on the Fund. In general, companies in these
industries have encountered rising costs but have been unable to pass them along
to insurers and consumers. Also, a number of health care-service companies were
scrutinized over questionable billing practices. Even though only a few
companies have been demonstrably involved in wrongdoing, stock prices for many
similar companies fell considerably, as investors worried that more negative
news would be forthcoming.
7
<PAGE> 9
Some of the companies whose performance most hurt the Fund were Tenet
Healthcare, Universal Health Services, and HealthSouth Corporation. We continue
to own each of these stocks but in smaller percentages than at the start of the
reporting period.
In the wake of economic troubles in the third quarter of 1998, financial
stocks--especially bank stocks--performed poorly. Although the Fund's position
in bank stocks was not large, companies such as BankAmerica and newly merged
Citigroup had a negative impact on the Fund. Conseco, a provider of life
insurance and other financial services, was also a disappointing performer.
Q HOW DID THE FUND PERFORM OVERALL?
A The Fund achieved a 12-month total return of 23.56 percent(1) (Class A
shares at net asset value) as of December 31, 1998. By comparison, the
Standard & Poor's 500-Stock Index returned 28.52 percent, and the Lipper
Growth Fund Index, which more closely resembles the Fund, returned 25.69
percent. The S&P 500-Stock Index is a broad-based, unmanaged index that reflects
the general performance of the stock market, and the Lipper Growth Fund Index
reflects the average performance of the 30 largest growth funds.
These indices are statistical composites that do not include any commissions
or sales charges that would be paid by an investor purchasing the securities
represented by these indices. Please refer to the chart on page 3 for additional
Fund performance results.
Q WHAT DO YOU SEE AHEAD FOR THE MARKETS AND THE FUND IN THE NEXT SIX MONTHS?
A Historically speaking, stock valuations are still relatively high, which
makes the market vulnerable to a sharp drop if bad news rattles investors.
At the same time, central banks around the world, including the Fed, have
been implementing policies designed to bolster lagging economies. We anticipate
that these actions will help benefit stocks and limit the potential for negative
corporate earnings surprises. As always, the markets will experience periods of
high volatility. We are confident, however, that our best response to volatile
markets is to stay committed to our stock-selection discipline and continue to
invest in those companies we believe provide the potential for above-average
growth rates at reasonable prices.
[SIG.]
Jeff D. New
Portfolio Manager
[SIG.]
Mary Jayne Maly
Portfolio Comanager
[SIG.]
Michael Davis
Portfolio Comanager
[SIG.]
Stephen L. Boyd
Chief Investment Officer
Equity Investments
Please see footnotes on page 3
8
<PAGE> 10
PORTFOLIO HIGHLIGHTS
VAN KAMPEN ENTERPRISE FUND
PORTFOLIO HOLDINGS AS A PERCENTAGE OF LONG-TERM INVESTMENTS
<TABLE>
<CAPTION>
PERCENTAGE OF
TOP TEN HOLDINGS THESE INVESTMENTS
AS OF DECEMBER 31, 1998 TWELVE MONTHS AGO
<S> <C> <C>
Phillip Morris Cos., Inc. .... 2.8% ......... 4.5%
EMC Corp. .................... 2.3% ......... 0.6%
America Online, Inc. ......... 2.3% ......... N/A
Safeway, Inc. ................ 2.2% ......... 1.6%
Waste Management, Inc. ....... 2.1% ......... N/A
Bristol-Myers Squibb Co. ..... 2.0% ......... 2.1%
International Business
Machines Corp. ............ 2.0% ......... 1.8%
Tyco International Ltd. ...... 1.8% ......... 1.1%
Brinker International,
Inc. ....................... 1.7% ......... 0.5%
ALLTEL Corp. ................. 1.6% ......... N/A
</TABLE>
N/A = Not Applicable
TOP FIVE PORTFOLIO HOLDINGS BY SECTOR AS A PERCENTAGE OF LONG-TERM INVESTMENTS
<TABLE>
<S> <C>
AS OF DECEMBER 31, 1998
Technology....................................... 23%
Consumer Distribution............................ 18%
Health Care...................................... 13%
Finance.......................................... 12%
Consumer Services................................ 11%
AS OF DECEMBER 31, 1997
Technology....................................... 16%
Finance.......................................... 16%
Consumer Distribution............................ 13%
Health Care...................................... 13%
Consumer Services................................ 13%
</TABLE>
9
<PAGE> 11
PORTFOLIO OF INVESTMENTS
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Shares Market Value
- -----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS 99.1%
CONSUMER DISTRIBUTION 18.2%
AnnTaylor Stores Corp. (a).................................. 492,000 $ 19,403,250
Brightpoint, Inc. (a)....................................... 436,000 5,995,000
Cardinal Health, Inc........................................ 207,000 15,706,125
Costco Cos., Inc. (a)....................................... 312,000 22,522,500
CVS Corp. .................................................. 268,000 14,740,000
Dayton Hudson Corp. ........................................ 690,000 37,432,500
Diebold, Inc. .............................................. 387,000 13,811,062
Earthgrains Co. ............................................ 437,000 13,519,688
Family Dollar Stores, Inc. ................................. 750,000 16,500,000
Hollywood Entertainment Corp. (a)........................... 324,000 8,829,000
Home Depot, Inc. ........................................... 275,000 16,826,562
Kroger Co. (a).............................................. 552,000 33,396,000
Lexmark International Group, Inc., Class A (a).............. 431,000 43,315,500
Lowe's Cos., Inc. .......................................... 530,000 27,129,375
McKesson Corp. ............................................. 202,000 15,970,625
Rite Aid Corp. ............................................. 265,000 13,134,063
Ross Stores, Inc. .......................................... 560,000 22,050,000
Safeway, Inc. (a)........................................... 1,082,000 65,934,375
SYSCO Corp. ................................................ 475,000 13,032,813
TJX Cos., Inc............................................... 1,460,000 42,340,000
Tricon Global Restaurants, Inc. (a)......................... 875,000 43,859,375
U.S. Foodservice Inc. (a)................................... 325,000 15,925,000
Wal-Mart Stores, Inc. ...................................... 407,000 33,145,062
--------------
554,517,875
--------------
CONSUMER DURABLES 2.0%
Ford Motor Co. ............................................. 302,000 17,723,625
Harley-Davidson, Inc. ...................................... 168,000 7,959,000
Maytag Co. ................................................. 280,000 17,430,000
Shaw Industries, Inc. ...................................... 755,000 18,308,750
--------------
61,421,375
--------------
CONSUMER NON-DURABLES 5.2%
Abercrombie & Fitch Co., Class A (a)........................ 253,000 17,899,750
Anheuser-Busch Cos., Inc. .................................. 356,000 23,362,500
Dial Corp. ................................................. 612,000 17,671,500
</TABLE>
See Notes to Financial Statements
10
<PAGE> 12
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Shares Market Value
- -----------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER NON-DURABLES (CONTINUED)
Philip Morris Cos., Inc. ................................... 1,546,000 $ 82,711,000
Tommy Hilfiger Corp. (a).................................... 285,000 17,100,000
--------------
158,744,750
--------------
CONSUMER SERVICES 10.8%
Brinker International, Inc. (a)............................. 1,798,000 51,917,250
CBS Corp. .................................................. 925,000 30,293,750
Cendant Corp. (a)........................................... 850,000 16,203,125
Chancellor Media Corp., Class A (a)......................... 732,000 35,044,500
Comcast Corp., Class A...................................... 258,000 15,141,375
Fox Entertainment Group, Inc., Class A (a).................. 571,000 14,382,063
Jacor Communications, Inc., Class A (a)..................... 369,000 23,754,375
McGraw-Hill, Inc. .......................................... 146,000 14,873,750
Metamor Worldwide, Inc. (a)................................. 405,000 10,125,000
Omnicom Group, Inc. ........................................ 550,000 31,900,000
Tele-Communications, Inc., Class A (a)...................... 295,000 16,317,187
Time Warner, Inc. .......................................... 520,000 32,272,500
Tribune Co.................................................. 283,000 18,678,000
Univision Communications, Inc., Class A (a)................. 449,000 16,248,187
--------------
327,151,062
--------------
ENERGY 1.4%
El Paso Energy Corp. ....................................... 710,000 24,716,875
Enron Corp. ................................................ 290,000 16,548,125
--------------
41,265,000
--------------
FINANCE 11.9%
AMBAC Financial Group, Inc. ................................ 475,000 28,589,062
Associates First Capital Corp., Class A..................... 526,000 22,289,250
BB&T Corp. ................................................. 365,000 14,714,063
Chase Manhattan Corp. ...................................... 393,000 26,748,563
Citigroup, Inc. ............................................ 572,000 28,314,000
CMAC Investment Corp. ...................................... 472,000 21,682,500
Enhance Financial Services Group, Inc. ..................... 470,000 14,100,000
Equitable Cos., Inc. ....................................... 516,000 29,863,500
Federal National Mortgage Assn. ............................ 346,000 25,604,000
Fifth Third Bancorp......................................... 380,000 27,098,750
Firstar Corp. .............................................. 362,000 33,756,500
Fleet Financial Group, Inc. ................................ 643,000 28,734,062
</TABLE>
See Notes to Financial Statements
11
<PAGE> 13
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Shares Market Value
- -----------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (CONTINUED)
Nationwide Financial Services, Inc., Class A................ 205,000 $ 10,595,938
UNUM Corp. ................................................. 256,000 14,944,000
Wells Fargo Co. ............................................ 886,000 35,384,625
--------------
362,418,813
--------------
HEALTHCARE 13.4%
Abbott Laboratories, Inc. .................................. 348,000 17,052,000
Amgen, Inc. (a)............................................. 303,000 31,682,437
Baxter International, Inc. ................................. 258,000 16,592,625
Becton, Dickinson & Co. .................................... 380,000 16,221,250
Bristol-Myers Squibb Co. ................................... 460,000 61,553,750
Guidant Corp. .............................................. 239,000 26,349,750
HEALTHSOUTH Corp. (a)....................................... 1,195,000 18,447,812
Lincare Holdings, Inc. (a).................................. 576,000 23,364,000
Mylan Laboratories, Inc. ................................... 450,000 14,175,000
Pfizer, Inc. ............................................... 100,000 12,543,750
Schering-Plough Corp. ...................................... 848,000 46,852,000
Tenet Healthcare Corp. (a).................................. 339,000 8,898,750
Total Renal Care Holdings, Inc. (a)......................... 615,000 18,180,938
Universal Health Services, Inc., Class B (a)................ 265,000 13,746,875
Warner-Lambert Co. ......................................... 326,000 24,511,125
Watson Pharmaceuticals, Inc. (a)............................ 494,000 31,060,250
Wellpoint Health Networks, Inc., Class A (a)................ 276,000 24,012,000
--------------
405,244,312
--------------
PRODUCER MANUFACTURING 6.4%
Republic Services, Inc., Class A (a)........................ 754,000 13,901,876
Textron, Inc. .............................................. 335,000 25,439,062
Tyco International Ltd. .................................... 736,000 55,522,000
United Technologies Corp. .................................. 311,000 33,821,250
Waste Management, Inc. ..................................... 1,363,000 63,549,875
--------------
192,234,063
--------------
RAW MATERIALS/PROCESSING INDUSTRIES 1.0%
Boise Cascade Corp. ........................................ 509,000 15,779,000
Georgia-Pacific Group....................................... 263,000 15,401,938
--------------
31,180,938
--------------
TECHNOLOGY 22.9%
3Com Corp. (a).............................................. 554,000 24,826,125
America Online, Inc. (a).................................... 468,000 67,743,000
</TABLE>
See Notes to Financial Statements
12
<PAGE> 14
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Shares Market Value
- -----------------------------------------------------------------------------------------
<S> <C> <C>
TECHNOLOGY (CONTINUED)
Ascend Communications, Inc. (a)............................. 350,000 $ 23,012,500
BMC Software, Inc. (a)...................................... 858,000 38,234,625
Check Point Software Technologies Ltd. (a).................. 245,000 11,224,063
Cisco Systems, Inc. (a)..................................... 490,000 45,478,125
Citrix Systems, Inc. (a).................................... 220,000 21,353,750
Compaq Computer Corp. ...................................... 370,000 15,516,875
Compuware Corp. (a)......................................... 517,000 40,390,625
Comverse Technology, Inc. (a)............................... 220,000 15,620,000
Dell Computer Corp. (a)..................................... 250,000 18,296,875
EMC Corp. (a)............................................... 809,000 68,765,000
Intel Corp. ................................................ 305,000 36,161,562
International Business Machines Corp. ...................... 324,000 59,859,000
Lucent Technologies, Inc. .................................. 72,000 7,920,000
Microsoft Corp. (a)......................................... 246,000 34,117,125
Networks Associates, Inc. (a)............................... 564,000 37,365,000
Nokia Corp. -- ADR (Finland) (a)............................ 280,000 33,722,500
Oracle Corp. (a)............................................ 945,000 40,753,125
Rational Software Corp. (a)................................. 30,000 795,000
Sanmina Corp. (a)........................................... 312,000 19,500,000
Sterling Software, Inc. (a)................................. 640,000 17,320,000
Sun Microsystems, Inc. (a).................................. 120,000 10,275,000
Waters Corp. (a)............................................ 106,000 9,248,500
--------------
697,498,375
--------------
TRANSPORTATION 0.5%
Kansas City Southern Industries, Inc. ...................... 331,000 16,281,063
--------------
UTILITIES 5.4%
AirTouch Communications, Inc. (a)........................... 483,000 34,836,375
ALLTEL Corp. ............................................... 788,000 47,132,250
PECO Energy Co. ............................................ 306,000 12,737,250
SBC Communications, Inc. ................................... 576,000 30,888,000
U.S. West, Inc. ............................................ 342,000 22,101,750
Unicom Corp. ............................................... 449,000 17,314,562
--------------
165,010,187
--------------
</TABLE>
See Notes to Financial Statements
13
<PAGE> 15
PORTFOLIO OF INVESTMENTS (CONTINUED)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Market Value
- -----------------------------------------------------------------------------------------
<S> <C>
TOTAL LONG-TERM INVESTMENTS 99.1%
(Cost $1,954,078,538)................................................ $3,012,967,813
SHORT-TERM INVESTMENTS 1.9%
(Cost $58,550,876)................................................... 58,543,529
--------------
TOTAL INVESTMENTS 101.0%
(Cost $2,012,629,414)................................................ 3,071,511,342
LIABILITIES IN EXCESS OF OTHER ASSETS (1.0%).......................... (31,740,950)
--------------
NET ASSETS 100.0%..................................................... $3,039,770,392
--------------
</TABLE>
(a) Non-income producing security as this stock currently does not declare
dividends.
See Notes to Financial Statements
14
<PAGE> 16
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Total Investments (Cost $2,012,629,414)..................... $ 3,071,511,342
Cash........................................................ 14,165
Receivables:
Fund Shares Sold.......................................... 35,699,484
Investments Sold.......................................... 12,726,546
Dividends................................................. 2,227,488
Other....................................................... 160,271
---------------
Total Assets.......................................... 3,122,339,296
---------------
LIABILITIES:
Payables:
Fund Shares Repurchased................................... 56,198,921
Investments Purchased..................................... 20,703,160
Distributor and Affiliates................................ 2,793,345
Income and Capital Gain Distributions..................... 1,125,524
Investment Advisory Fee................................... 1,087,941
Accrued Expenses............................................ 423,841
Trustees' Deferred Compensation and Retirement Plans........ 236,172
---------------
Total Liabilities..................................... 82,568,904
---------------
NET ASSETS.................................................. $ 3,039,770,392
===============
NET ASSETS CONSIST OF:
Capital..................................................... $ 1,937,343,329
Net Unrealized Appreciation................................. 1,058,881,928
Accumulated Net Realized Gain............................... 43,505,364
Accumulated Undistributed Net Investment Income............. 39,771
---------------
NET ASSETS.................................................. $ 3,039,770,392
===============
MAXIMUM OFFERING PRICE PER SHARE:
Class A Shares:
Net asset value and redemption price per share (Based on
net assets of $2,137,440,589 and 103,600,863 shares of
beneficial interest issued and outstanding)........... $ 20.63
Maximum sales charge (5.75%* of offering price)......... 1.26
---------------
Maximum offering price to public........................ $ 21.89
===============
Class B Shares:
Net asset value and offering price per share (Based on
net assets of $816,299,436 and 40,662,436 shares of
beneficial interest issued and outstanding)........... $ 20.08
===============
Class C Shares:
Net asset value and offering price per share (Based on
net assets of $86,030,367 and 4,250,624 shares of
beneficial interest issued and outstanding)........... $ 20.24
===============
</TABLE>
*On sales of $50,000 or more, the sales charge will be reduced.
See Notes to Financial Statements
15
<PAGE> 17
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends................................................... $ 20,697,079
Interest.................................................... 12,219,965
-------------
Total Income............................................ 32,917,044
-------------
EXPENSES:
Investment Advisory Fee..................................... 11,985,183
Distribution (12b-1) and Service Fees (Attributed to Classes
A, B and C of $3,832,838, $6,717,627 and $719,407
respectively)............................................. 11,269,872
Shareholder Services........................................ 5,449,847
Custody..................................................... 129,871
Legal....................................................... 93,581
Trustees' Fees and Expenses................................. 51,127
Other....................................................... 1,537,631
-------------
Total Expenses.......................................... 30,517,112
-------------
NET INVESTMENT INCOME....................................... $ 2,399,932
=============
REALIZED AND UNREALIZED GAIN/LOSS:
Realized Gain/Loss:
Investments............................................... $ 127,964,160
Futures................................................... 6,315,398
-------------
Net Realized Gain........................................... 134,279,558
-------------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 615,523,511
End of the Period:
Investments............................................... 1,058,881,928
-------------
Net Unrealized Appreciation During the Period............... 443,358,417
-------------
NET REALIZED AND UNREALIZED GAIN............................ $ 577,637,975
=============
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $ 580,037,907
=============
</TABLE>
See Notes to Financial Statements
16
<PAGE> 18
STATEMENT OF CHANGES IN NET ASSETS
For the Years Ended December 31, 1998 and 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended Year Ended
December 31, 1998 December 31, 1997
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income............................... $ 2,399,932 $ 6,869,254
Net Realized Gain................................... 134,279,558 213,595,434
Net Unrealized Appreciation During the Period....... 443,358,417 255,744,332
--------------- ---------------
Change in Net Assets from Operations................ 580,037,907 476,209,020
--------------- ---------------
Distributions from Net Investment Income:
Class A Shares.................................... (4,405,387) (5,354,359)
--------------- ---------------
Distributions from Net Realized Gain:
Class A Shares.................................... (75,906,906) (162,962,079)
Class B Shares.................................... (29,616,587) (52,681,023)
Class C Shares.................................... (3,123,845) (5,428,380)
--------------- ---------------
(108,647,338) (221,071,482)
--------------- ---------------
Total Distributions................................. (113,052,725) (226,425,841)
--------------- ---------------
NET CHANGE IN NET ASSETS FROM INVESTMENT
ACTIVITIES........................................ 466,985,182 249,783,179
--------------- ---------------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold........................... 5,283,612,665 3,595,442,347
Net Asset Value of Shares Issued Through Dividend
Reinvestment...................................... 102,204,579 206,216,075
Cost of Shares Repurchased.......................... (5,118,178,150) (3,359,260,453)
--------------- ---------------
Net Change in Net Assets from Capital
Transactions...................................... 267,639,094 442,397,969
--------------- ---------------
TOTAL INCREASE IN NET ASSETS........................ 734,624,276 692,181,148
NET ASSETS:
Beginning of the Period............................. 2,305,146,116 1,612,964,968
--------------- ---------------
End of the Period (Including accumulated
undistributed net investment income of $39,771 and
$2,045,226, respectively)......................... $ 3,039,770,392 $ 2,305,146,116
=============== ===============
</TABLE>
See Notes to Financial Statements
17
<PAGE> 19
FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for one share of
the Fund outstanding throughout the periods indicated.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended December 31,
---------------------------------------------------
Class A Shares 1998 1997 1996 1995 1994
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of the
Period............................ $ 17.414 $ 15.120 $ 13.07 $ 11.43 $ 12.23
-------- -------- -------- -------- -------
Net Investment Income............. .058 .087 .086 .08 .08
Net Realized and Unrealized
Gain/Loss....................... 3.980 4.113 2.942 3.7325 (.1225)
-------- -------- -------- -------- -------
Total from Investment Operations.... 4.038 4.200 3.028 3.8125 (.0425)
-------- -------- -------- -------- -------
Less:
Distributions from Net Investment
Income.......................... .045 .060 .077 .0725 .085
Distributions from Net Realized
Gain............................ .776 1.846 .901 2.10 .6725
-------- -------- -------- -------- -------
Total Distributions................. .821 1.906 .978 2.1725 .7575
-------- -------- -------- -------- -------
Net Asset Value, End of the
Period............................ $ 20.631 $ 17.414 $ 15.120 $ 13.07 $ 11.43
======== ======== ======== ======== =======
Total Return (a).................... 23.56% 28.55% 23.48% 33.92% (.18%)
Net Assets at End of the Period (In
millions)......................... $2,137.4 $1,706.1 $1,276.9 $1,035.7 $ 749.7
Ratio of Expenses to Average Net
Assets (b)........................ .94% .93% 1.01% .98% 1.05%
Ratio of Net Investment Income to
Average Net Assets (b)............ .32% .54% .60% .59% .71%
Portfolio Turnover.................. 72% 73% 110% 152% 176%
</TABLE>
(a) Total Return is based upon net asset value which does not include payment of
maximum sales charge or contingent deferred sales charge.
(b) For the year ended December 31, 1996, the impact on the Ratios of Expenses
and Net Investment Income to Average Net Assets due to Van Kampen's
reimbursement of certain expenses was less than 0.01%.
See Notes to Financial Statements
18
<PAGE> 20
FINANCIAL HIGHLIGHTS (CONTINUED)
The following schedule presents financial highlights for one share of
the Fund outstanding throughout the periods indicated.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended December 31,
--------------------------------------------------
Class B Shares 1998(c) 1997 1996 1995 1994
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of the
Period............................... $17.059 $14.909 $ 12.94 $11.37 $ 12.19
------- ------- ------- ------ -------
Net Investment Loss.................... (.089) (.021) (.012) (.03) (.01)
Net Realized and Unrealized
Gain/Loss............................ 3.881 4.017 2.882 3.70 (.1375)
------- ------- ------- ------ -------
Total from Investment Operations....... 3.792 3.996 2.870 3.67 (.1475)
Less Distributions from Net Realized
Gain................................. .776 1.846 .901 2.10 .6725
------- ------- ------- ------ -------
Net Asset Value, End of the Period..... $20.075 $17.059 $14.909 $12.94 $ 11.37
======= ======= ======= ====== =======
Total Return (a)....................... 22.65% 27.50% 22.48% 32.82% (1.07%)
Net Assets at End of the Period (In
millions)............................ $ 816.3 $ 542.2 $ 305.6 $184.1 $ 93.7
Ratio of Expenses to Average Net Assets
(b).................................. 1.74% 1.75% 1.82% 1.81% 1.89%
Ratio of Net Investment Income to
Average Net Assets (b)............... (.49%) (.29%) (.21%) (.24%) (.11%)
Portfolio Turnover..................... 72% 73% 110% 152% 176%
</TABLE>
(a) Total Return is based upon net asset value which does not include payment of
maximum sales charge or contingent deferred sales charge.
(b) For the year ended December 31, 1996, the impact on the Ratios of Expenses
and Net Investment Income to Average Net Assets due to Van Kampen's
reimbursement of certain expenses was less than 0.01%.
(c) Based on average shares outstanding.
See Notes to Financial Statements
19
<PAGE> 21
FINANCIAL HIGHLIGHTS (CONTINUED)
The following schedule presents financial highlights for one share of
the Fund outstanding throughout the periods indicated.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended December 31,
----------------------------------------------
Class C Shares 1998(c) 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of the
Period................................. $17.191 $15.008 $ 13.01 $11.42 $ 12.23
------- ------- ------- ------ -------
Net Investment Loss...................... (.090) (.023) (.013) (.03) (.01)
Net Realized and Unrealized Gain/Loss.... 3.914 4.052 2.912 3.72 (.1275)
------- ------- ------- ------ -------
Total from Investment Operations......... 3.824 4.029 2.899 3.69 (.1375)
Less Distributions from Net Realized
Gain................................... .776 1.846 .901 2.10 .6725
------- ------- ------- ------ -------
Net Asset Value, End of the Period....... $20.239 $17.191 $15.008 $13.01 $ 11.42
======= ======= ======= ====== =======
Total Return (a)......................... 22.65% 27.51% 22.60% 32.85% (.99%)
Net Assets at End of the Period (In
millions).............................. $ 86.0 $ 56.9 $ 30.4 $ 15.7 $ 7.4
Ratio of Expenses to Average Net Assets
(b).................................... 1.74% 1.75% 1.82% 1.80% 1.90%
Ratio of Net Investment Income to Average
Net Assets (b)......................... (.48%) (.29%) (.22%) (.23%) (.12%)
Portfolio Turnover....................... 72% 73% 110% 152% 176%
</TABLE>
(a) Total Return is based upon net asset value which does not include payment of
maximum sales charge or contingent deferred sales charge.
(b) For the year ended December 31, 1996, the impact on the Ratios of Expenses
and Net Investment Income to Average Net Assets due to Van Kampen's
reimbursement of certain expenses was less than 0.01%.
(c) Based on average shares outstanding.
See Notes to Financial Statements
20
<PAGE> 22
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen Enterprise 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 seek capital appreciation by investing in a portfolio of
securities consisting principally of common stocks. The Fund commenced
investment operations on January 7, 1954. The distribution of the Fund's Class B
and Class C shares commenced on December 20, 1991 and July 20, 1993,
respectively.
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 sale price as of the close of such securities exchange.
Unlisted securities and listed securities for which the last sale price is not
available are valued at the mean of the bid and asked prices or, if not
available, their fair value as determined in accordance with 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 specified 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 Asset Management Inc. (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
21
<PAGE> 23
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
December 31, 1998
- --------------------------------------------------------------------------------
the value of the underlying security at not less than the repurchase proceeds
due the Fund.
C. INCOME AND EXPENSES--Dividend income is recorded on the ex-dividend date and
interest income is recorded on an accrual basis. Discounts on debt securities
purchased are amortized over the expected life of each applicable security.
Premiums on debt securities are not amortized. Expenses of the Fund are
allocated on a pro rata basis to each class of shares, except for distribution
and service fees and transfer agency costs which are unique to each class of
shares.
D. 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 to its shareholders.
Therefore, no provision for federal income taxes is required.
At December 31, 1998, for federal income tax purposes, cost of long- and
short-term investments is $2,015,434,127; the aggregate gross unrealized
appreciation is $1,079,616,005 and the aggregate gross unrealized depreciation
is $23,538,790, resulting in net unrealized appreciation on long- and short-term
investments of $1,056,077,215.
Net realized gains or losses may differ for financial purposes primarily as
a result of the deferral of losses for tax purposes resulting from wash sales.
E. DISTRIBUTION OF INCOME AND GAINS--The Fund declares and pays dividends
annually from net investment income. Net realized gains, if any, are distributed
annually. Distributions from net realized gains for book purposes may include
short-term capital gains and gains on option and futures transactions. All
short-term capital gains and a portion of option and futures gains are included
in ordinary income for tax purposes.
For federal income tax purposes, the following information is furnished with
respect to the distributions paid by the Fund during its taxable year ended
December 31, 1998. The Fund designated and paid $101,309,909 as a 20% rate gain
distribution. Shareholders were sent a 1998 Form 1099-DIV in January 1999
representing their proportionate share of this capital gain distribution to be
reported on their income tax returns.
22
<PAGE> 24
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
December 31, 1998
- --------------------------------------------------------------------------------
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of the Fund's Investment Advisory Agreement, the Adviser will
provide investment advice and facilities to the Fund for an annual fee payable
monthly as follows:
<TABLE>
<CAPTION>
AVERAGE NET ASSETS % PER ANNUM
- ---------------------------------------------------------------------
<S> <C>
First $1 billion...................................... .50 of 1%
Next $1 billion...................................... .45 of 1%
Next $1 billion...................................... .40 of 1%
Over $3 billion...................................... .35 of 1%
</TABLE>
For the year ended December 31, 1998, the Fund recognized expenses of
approximately $93,600 representing legal services provided by Skadden, Arps,
Slate, Meagher & Flom (Illinois), counsel to the Fund, of which a trustee of the
Fund is an affiliated person.
For the year ended December 31, 1998, the Fund recognized expenses of
approximately $594,200 representing Van Kampen Funds Inc.'s or its affiliates'
(collectively "Van Kampen") cost of providing accounting services to the Fund.
Van Kampen Investor Services Inc. ("VKIS"), an affiliate of the Adviser,
serves as the shareholder servicing agent for the Fund. For the year ended
December 31, 1998, the Fund recognized expenses of approximately $4,316,800.
Beginning in 1998, the transfer agency fees are determined through negotiations
with the Fund's Board of Trustees and are based on competitive market
benchmarks.
Certain officers and trustees of the Fund are also officers and directors of
Van Kampen. The Fund does not compensate its officers or trustees who are
officers of Van Kampen.
The Fund provides deferred compensation and retirement plans for its
trustees who are not officers of Van Kampen. Under the deferred compensation
plan, trustees may elect to defer all or a portion of their compensation to a
later date. Benefits under the retirement plan are payable for a ten-year period
and are based upon each trustee's years of service to the Fund. The maximum
annual benefit per trustee under the plan is $2,500.
3. CAPITAL TRANSACTIONS
The Fund has outstanding three classes of shares of beneficial interest, Classes
A, B and C, each with a par value of $.01 per share. There are an unlimited
number of shares of each class authorized.
23
<PAGE> 25
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
December 31, 1998
- --------------------------------------------------------------------------------
At December 31, 1998, capital aggregated $1,247,993,551, $622,683,389 and
$66,666,389 for Classes A, B, and C, respectively. For the year ended December
31, 1998, transactions were as follows:
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------------------------------
<S> <C> <C>
Sales:
Class A................................. 232,030,934 $ 4,349,545,687
Class B................................. 46,624,437 851,354,417
Class C................................. 4,456,779 82,712,561
------------ ---------------
Total Sales............................... 283,112,150 $ 5,283,612,665
============ ===============
Dividend Reinvestment:
Class A................................. 3,731,141 $ 71,215,610
Class B................................. 1,514,082 28,118,929
Class C................................. 153,307 2,870,040
------------ ---------------
Total Dividend Reinvestment............... 5,398,530 $ 102,204,579
============ ===============
Repurchases:
Class A................................. (230,130,328) $(4,324,087,590)
Class B................................. (39,259,659) (725,635,528)
Class C................................. (3,669,727) (68,455,032)
------------ ---------------
Total Repurchases......................... (273,059,714) $(5,118,178,150)
============ ===============
</TABLE>
24
<PAGE> 26
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
December 31, 1998
- --------------------------------------------------------------------------------
At December 31, 1997, capital aggregated $1,151,319,844, $468,845,571 and
$49,538,820 for Classes A, B, and C, respectively. For the year ended December
31, 1997, transactions were as follows:
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------------------------------
<S> <C> <C>
Sales:
Class A................................. 163,160,235 $ 2,870,082,714
Class B................................. 37,384,289 643,957,979
Class C................................. 4,816,449 81,401,654
------------ ---------------
Total Sales............................... 205,360,973 $ 3,595,442,347
============ ===============
Dividend Reinvestment:
Class A................................. 9,059,256 $ 151,406,608
Class B................................. 3,035,164 49,805,679
Class C................................. 302,489 5,003,788
------------ ---------------
Total Dividend Reinvestment............... 12,396,909 $ 206,216,075
============ ===============
Repurchases:
Class A................................. (158,703,531) $(2,797,304,772)
Class B................................. (29,133,822) (497,604,258)
Class C................................. (3,835,319) (64,351,423)
------------ ---------------
Total Repurchases......................... (191,672,672) $(3,359,260,453)
============ ===============
</TABLE>
Class B and C shares are offered without a front end sales charge, but are
subject to a contingent deferred sales charge (CDSC). Class B shares will
automatically convert to Class A shares after the eighth year following
purchase. The CDSC for Class B and C shares will be imposed on most redemptions
made within five years of the purchase for Class B and one year of the purchase
for Class C as detailed in the following schedule.
<TABLE>
<CAPTION>
CONTINGENT DEFERRED
SALES CHARGE
-----------------------
YEAR OF REDEMPTION CLASS B CLASS C
- -------------------------------------------------------------------------
<S> <C> <C>
First............................................ 5.00% 1.00%
Second........................................... 4.00% None
Third............................................ 3.00% None
Fourth........................................... 2.50% None
Fifth............................................ 1.50% None
Sixth and Thereafter............................. None None
</TABLE>
25
<PAGE> 27
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
December 31, 1998
- --------------------------------------------------------------------------------
For the year ended December 31, 1998, Van Kampen, as Distributor for the
Fund, received commissions on sales of the Fund's Class A shares of
approximately $1,429,400 and CDSC on redeemed shares of approximately
$1,698,800. Sales charges do not represent expenses of the Fund.
4. INVESTMENT TRANSACTIONS
During the period, the cost of purchases and proceeds from sales of investments,
excluding short-term investments, were $2,077,467,355 and $1,716,299,284,
respectively.
5. DERIVATIVE FINANCIAL INSTRUMENTS
A derivative financial instrument in very general terms refers to a security
whose value is "derived" from the value of an underlying asset, reference rate
or index.
The Fund has a variety of reasons to use derivative instruments, such as to
attempt to protect the Fund against possible changes in the market value of its
portfolio or to generate potential gain. All of the Fund's portfolio holdings,
including derivative instruments, are marked to market each day with the change
in value reflected in the unrealized appreciation/depreciation. Upon
disposition, a realized gain or loss is recognized accordingly, except when
taking delivery of a security underlying a futures contract. In this instance,
the recognition of gain or loss is postponed until the disposal of the security
underlying the futures contract.
During the period, the Fund invested in futures contracts, a type of
derivative. A futures contract is an agreement involving the delivery of a
particular asset on a specified future date at an agreed upon price. The Fund
generally invests in stock index futures. These contracts are generally used to
provide the return of an index without purchasing all of the securities
underlying the index or to manage the Fund's overall exposure to the equity
markets.
Upon entering into futures contracts, the Fund maintains, in a segregated
account with its custodian, securities with a value equal to its obligation
under the futures contracts. During the period the futures contract is open,
payments are received from or made to the broker based upon changes in the value
of the contract (the variation margin).
26
<PAGE> 28
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
December 31, 1998
- --------------------------------------------------------------------------------
Transactions in futures contracts for the year ended December 31, 1998, were
as follows:
<TABLE>
<CAPTION>
CONTRACTS
- ----------------------------------------------------------------------
<S> <C>
Outstanding at December 31, 1997............................ 800
Futures Opened.............................................. 2,290
Futures Closed.............................................. (3,090)
------
Outstanding at December 31, 1998............................ -0-
======
</TABLE>
6. DISTRIBUTION AND SERVICE PLANS
The Fund and its shareholders have adopted a distribution plan pursuant to Rule
12b-1 under the Investment Company Act of 1940 and a service plan (collectively
the "Plans"). The Plans govern payments for the distribution of the Fund's
shares, ongoing shareholder services and maintenance of shareholder accounts.
Annual fees under the Plans of up to .25% of Class A net assets and 1.00%
each of Class B and Class C net assets are accrued daily. Included in these fees
for the year ended December 31, 1998, are payments retained by Van Kampen of
approximately $5,888,400.
27
<PAGE> 29
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Trustees of
Van Kampen Enterprise Fund
In our opinion, the accompanying statement of assets and liabilities, including
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 Enterprise Fund (the
"Fund") at December 31, 1998, 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 accounting 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 financial statements in accordance with generally
accepted auditing standards which require that we plan and perform the audit to
obtain reasonable assurance 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 principles 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, 1998 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PRICEWATERHOUSECOOPERS LLP
Chicago, Illinois
February 1, 1999
28
<PAGE> 30
VAN KAMPEN FUNDS
EQUITY FUNDS
Domestic
Aggressive Equity
Aggressive Growth
American Value
Comstock
Emerging Growth
Enterprise
Equity Growth
Equity Income
Growth
Growth and Income
Harbor
Pace
Real Estate Securities
Utility
Value
Global/International
Asian Growth
Emerging Markets
European Equity
Global Equity
Global Equity Allocation
Global Franchise
Global Managed Assets
International Magnum
Latin American
FIXED-INCOME FUNDS
Income
Corporate Bond
Global Fixed Income
Global Government Securities
Government Securities
High Income Corporate Bond
High Yield
High Yield & Total Return
Limited Maturity Government
Short-Term Global Income
Strategic Income
U.S. Government
U.S. Government Trust for Income
Worldwide High Income
Tax Exempt Income
California Insured Tax Free
Florida Insured Tax Free Income
High Yield Municipal
Insured Tax Free Income
Intermediate Term Municipal Income
Municipal Income
New York Tax Free Income
Pennsylvania Tax Free Income
Tax Free High Income
Capital Preservation
Reserve
Tax Free Money
Senior Loan
Prime Rate Income Trust
Senior Floating Rate
To find out more about any of these
funds, ask your financial advisor for
a prospectus, which contains more
complete information, including sales
charges, risks, and expenses. Please
read it carefully before you invest
or send money.
To view a current Van Kampen fund prospectus or to receive additional fund
information, choose from one of the following:
- - visit our Web site at
WWW.VANKAMPEN.COM--to view a prospectus, select Download Prospectus
- - call us at 1-800-341-2911 weekdays from 7:00 a.m. to 7:00 p.m. Central time.
Telecommunications Device for the Deaf users, call 1-800-421-2833.
- - e-mail us by visiting
WWW.VANKAMPEN.COM and selecting Contact Us
29
<PAGE> 31
VAN KAMPEN ENTERPRISE FUND
BOARD OF TRUSTEES
J. MILES BRANAGAN
RICHARD M. DEMARTINI*
LINDA HUTTON HEAGY
R. CRAIG KENNEDY
JACK E. NELSON
DON G. POWELL*
PHILLIP B. ROONEY
FERNANDO SISTO
WAYNE W. WHALEN* - Chairman
PAUL G. YOVOVICH
OFFICERS
DENNIS J. MCDONNELL*
President
RONALD A. NYBERG*
Vice President and Secretary
JOHN L. SULLIVAN*
Vice President, Treasurer and
Chief Financial Officer
CURTIS W. MORELL*
Vice President and Chief Accounting Officer
TANYA M. LODEN*
Controller
PETER W. HEGEL*
PAUL R. WOLKENBERG*
EDWARD C. WOOD, III*
Vice Presidents
INVESTMENT ADVISER
VAN KAMPEN
ASSET MANAGEMENT INC.
1 Parkview Plaza
P.O. Box 5555
Oakbrook Terrace, Illinois 60181-5555
DISTRIBUTOR
VAN KAMPEN FUNDS INC.
1 Parkview Plaza
P.O. Box 5555
Oakbrook Terrace, Illinois 60181-5555
SHAREHOLDER SERVICING AGENT
VAN KAMPEN INVESTOR
SERVICES INC.
P.O. Box 418256
Kansas City, Missouri 64141-9256
CUSTODIAN
STATE STREET BANK
AND TRUST COMPANY
225 Franklin Street
P.O. Box 1713
Boston, Massachusetts 02105
LEGAL COUNSEL
SKADDEN, ARPS, SLATE,
MEAGHER & FLOM (ILLINOIS)
333 West Wacker Drive
Chicago, Illinois 60606
INDEPENDENT ACCOUNTANTS
PRICEWATERHOUSECOOPERS LLP
200 E. Randolph Drive
Chicago, Illinois 60601
TAX NOTICE TO CORPORATE SHAREHOLDERS
For 1998, 39.93% of the dividends taxable as ordinary income qualified for
the 70% dividends received deduction for corporations.
* "Interested" persons of the Fund, as defined in the Investment Company Act of
1940.
(C) Van Kampen Funds Inc., 1999 All rights reserved.
(SM) denotes a service mark of Van Kampen Funds Inc.
This report is submitted for the general information of the shareholders of the
Fund. It is not authorized for distribution to prospective investors unless 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. After June 30, 1999, the report, if used with prospective
investors, must be accompanied by a quarterly performance update, if applicable.
30
<PAGE> 32
YEAR 2000 READINESS DISCLOSURE
Like other mutual funds, financial and business organizations and individuals
around the world, the Fund could be adversely affected if the computer systems
used by the Fund's investment adviser and other service providers do not
properly process and calculate date-related information and data from and after
January 1, 2000. This is commonly known as the "Year 2000 Problem." The Fund's
investment adviser is taking steps that it believes are reasonably designed to
address the Year 2000 Problem with respect to computer systems that it uses and
to obtain reasonable assurances that comparable steps are being taken by the
Fund's other major service providers. At this time, there can be no assurances
that these steps will be sufficient to avoid any adverse impact to the Fund. In
addition, the Year 2000 Problem may adversely affect the markets and the issuers
of securities in which the Fund may invest that, in turn, may adversely affect
the net asset value of the Fund. Improperly functioning trading systems may
result in settlement problems and liquidity issues. In addition, corporate and
governmental data processing errors may result in production problems for
individual companies or issuers and overall economic uncertainty. Earnings of
individual issuers will be affected by remediation costs, which may be
substantial and may be reported inconsistently in U.S. and foreign financial
statements. Accordingly, the Fund's investments may be adversely affected. The
statements above are subject to the Year 2000 Information and Readiness
Disclosure Act, which may limit the legal rights regarding the use of such
statements in the case of dispute.
31
<PAGE> 33
VAN KAMPEN FUNDS
YOUR NOTES:
32
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 11
<NAME> ENTERPRISE CLASS A
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 2,012,629,414<F1>
<INVESTMENTS-AT-VALUE> 3,071,511,342<F1>
<RECEIVABLES> 50,653,518<F1>
<ASSETS-OTHER> 0<F1>
<OTHER-ITEMS-ASSETS> 174,436<F1>
<TOTAL-ASSETS> 3,122,339,296<F1>
<PAYABLE-FOR-SECURITIES> 20,703,160<F1>
<SENIOR-LONG-TERM-DEBT> 0<F1>
<OTHER-ITEMS-LIABILITIES> 61,865,744<F1>
<TOTAL-LIABILITIES> 82,568,904<F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,247,993,551
<SHARES-COMMON-STOCK> 103,600,863
<SHARES-COMMON-PRIOR> 97,969,116
<ACCUMULATED-NII-CURRENT> 39,771<F1>
<OVERDISTRIBUTION-NII> 0<F1>
<ACCUMULATED-NET-GAINS> 43,505,364<F1>
<OVERDISTRIBUTION-GAINS> 0<F1>
<ACCUM-APPREC-OR-DEPREC> 1,058,881,928<F1>
<NET-ASSETS> 2,137,440,589
<DIVIDEND-INCOME> 20,697,079<F1>
<INTEREST-INCOME> 12,219,965<F1>
<OTHER-INCOME> 0<F1>
<EXPENSES-NET> (30,517,112)<F1>
<NET-INVESTMENT-INCOME> 2,399,932<F1>
<REALIZED-GAINS-CURRENT> 134,279,558<F1>
<APPREC-INCREASE-CURRENT> 443,358,417<F1>
<NET-CHANGE-FROM-OPS> 580,037,907<F1>
<EQUALIZATION> 0<F1>
<DISTRIBUTIONS-OF-INCOME> (4,405,387)
<DISTRIBUTIONS-OF-GAINS> (75,906,906)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 232,030,934
<NUMBER-OF-SHARES-REDEEMED> (230,130,328)
<SHARES-REINVESTED> 3,731,141
<NET-CHANGE-IN-ASSETS> 431,385,852
<ACCUMULATED-NII-PRIOR> 2,045,226<F1>
<ACCUMULATED-GAINS-PRIOR> 17,873,144<F1>
<OVERDISTRIB-NII-PRIOR> 0<F1>
<OVERDIST-NET-GAINS-PRIOR> 0<F1>
<GROSS-ADVISORY-FEES> 11,985,183<F1>
<INTEREST-EXPENSE> 0<F1>
<GROSS-EXPENSE> 30,517,112<F1>
<AVERAGE-NET-ASSETS> 1,875,539,428
<PER-SHARE-NAV-BEGIN> 17.414
<PER-SHARE-NII> 0.058
<PER-SHARE-GAIN-APPREC> 3.980
<PER-SHARE-DIVIDEND> (0.045)
<PER-SHARE-DISTRIBUTIONS> (0.776)
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 20.631
<EXPENSE-RATIO> 0.94
<AVG-DEBT-OUTSTANDING> 0<F1>
<AVG-DEBT-PER-SHARE> 0<F1>
<FN>
<F1>This item relates to the Fund on a composite basis and not on a class basis
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 12
<NAME> ENTERPRISE CLASS B
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 2,012,629,414<F1>
<INVESTMENTS-AT-VALUE> 3,071,511,342<F1>
<RECEIVABLES> 50,653,518<F1>
<ASSETS-OTHER> 0<F1>
<OTHER-ITEMS-ASSETS> 174,436<F1>
<TOTAL-ASSETS> 3,122,339,296<F1>
<PAYABLE-FOR-SECURITIES> 20,703,160<F1>
<SENIOR-LONG-TERM-DEBT> 0<F1>
<OTHER-ITEMS-LIABILITIES> 61,865,744<F1>
<TOTAL-LIABILITIES> 82,568,904<F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 622,683,389
<SHARES-COMMON-STOCK> 40,662,436
<SHARES-COMMON-PRIOR> 31,783,576
<ACCUMULATED-NII-CURRENT> 39,771<F1>
<OVERDISTRIBUTION-NII> 0<F1>
<ACCUMULATED-NET-GAINS> 43,505,364<F1>
<OVERDISTRIBUTION-GAINS> 0<F1>
<ACCUM-APPREC-OR-DEPREC> 1,058,881,928<F1>
<NET-ASSETS> 816,299,436
<DIVIDEND-INCOME> 20,697,079<F1>
<INTEREST-INCOME> 12,219,965<F1>
<OTHER-INCOME> 0<F1>
<EXPENSES-NET> (30,517,112)<F1>
<NET-INVESTMENT-INCOME> 2,399,932<F1>
<REALIZED-GAINS-CURRENT> 134,279,558<F1>
<APPREC-INCREASE-CURRENT> 443,358,417<F1>
<NET-CHANGE-FROM-OPS> 580,037,907<F1>
<EQUALIZATION> 0<F1>
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (29,616,587)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 46,624,437
<NUMBER-OF-SHARES-REDEEMED> (39,259,659)
<SHARES-REINVESTED> 1,514,082
<NET-CHANGE-IN-ASSETS> 274,114,239
<ACCUMULATED-NII-PRIOR> 2,045,226<F1>
<ACCUMULATED-GAINS-PRIOR> 17,873,144<F1>
<OVERDISTRIB-NII-PRIOR> 0<F1>
<OVERDIST-NET-GAINS-PRIOR> 0<F1>
<GROSS-ADVISORY-FEES> 11,985,183<F1>
<INTEREST-EXPENSE> 0<F1>
<GROSS-EXPENSE> 30,517,112<F1>
<AVERAGE-NET-ASSETS> 672,144,318
<PER-SHARE-NAV-BEGIN> 17.059
<PER-SHARE-NII> (0.089)
<PER-SHARE-GAIN-APPREC> 3.881
<PER-SHARE-DIVIDEND> 0.000
<PER-SHARE-DISTRIBUTIONS> (0.776)
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 20.075
<EXPENSE-RATIO> 1.74
<AVG-DEBT-OUTSTANDING> 0<F1>
<AVG-DEBT-PER-SHARE> 0<F1>
<FN>
<F1>This item relates to the Fund on a composite basis and not on a class basis
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 13
<NAME> ENTERPRISE CLASS C
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 2,012,629,414<F1>
<INVESTMENTS-AT-VALUE> 3,071,511,342<F1>
<RECEIVABLES> 50,653,518<F1>
<ASSETS-OTHER> 0<F1>
<OTHER-ITEMS-ASSETS> 174,436<F1>
<TOTAL-ASSETS> 3,122,339,296<F1>
<PAYABLE-FOR-SECURITIES> 20,703,160<F1>
<SENIOR-LONG-TERM-DEBT> 0<F1>
<OTHER-ITEMS-LIABILITIES> 61,865,744<F1>
<TOTAL-LIABILITIES> 82,568,904<F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 66,666,389
<SHARES-COMMON-STOCK> 4,250,624
<SHARES-COMMON-PRIOR> 3,310,265
<ACCUMULATED-NII-CURRENT> 39,771<F1>
<OVERDISTRIBUTION-NII> 0<F1>
<ACCUMULATED-NET-GAINS> 43,505,364<F1>
<OVERDISTRIBUTION-GAINS> 0<F1>
<ACCUM-APPREC-OR-DEPREC> 1,058,881,928<F1>
<NET-ASSETS> 86,030,367
<DIVIDEND-INCOME> 20,697,079<F1>
<INTEREST-INCOME> 12,219,965<F1>
<OTHER-INCOME> 0<F1>
<EXPENSES-NET> (30,517,112)<F1>
<NET-INVESTMENT-INCOME> 2,399,932<F1>
<REALIZED-GAINS-CURRENT> 134,279,558<F1>
<APPREC-INCREASE-CURRENT> 443,358,417<F1>
<NET-CHANGE-FROM-OPS> 580,037,907<F1>
<EQUALIZATION> 0<F1>
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (3,123,845)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4,456,779
<NUMBER-OF-SHARES-REDEEMED> (3,669,727)
<SHARES-REINVESTED> 153,307
<NET-CHANGE-IN-ASSETS> 29,124,185
<ACCUMULATED-NII-PRIOR> 2,045,226<F1>
<ACCUMULATED-GAINS-PRIOR> 17,873,144<F1>
<OVERDISTRIB-NII-PRIOR> 0<F1>
<OVERDIST-NET-GAINS-PRIOR> 0<F1>
<GROSS-ADVISORY-FEES> 11,985,183<F1>
<INTEREST-EXPENSE> 0<F1>
<GROSS-EXPENSE> 30,517,112<F1>
<AVERAGE-NET-ASSETS> 71,981,769
<PER-SHARE-NAV-BEGIN> 17.191
<PER-SHARE-NII> (0.090)
<PER-SHARE-GAIN-APPREC> 3.914
<PER-SHARE-DIVIDEND> 0.000
<PER-SHARE-DISTRIBUTIONS> (0.776)
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 20.239
<EXPENSE-RATIO> 1.74
<AVG-DEBT-OUTSTANDING> 0<F1>
<AVG-DEBT-PER-SHARE> 0<F1>
<FN>
<F1>This item relates to the Fund on a composite basis and not on a class basis
</FN>
</TABLE>
