<PAGE> PAGE 1
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000 F000000 Y
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008 B000001 A
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008 D020001 IL
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011 A000001 VAN KAMPEN FUNDS INC.
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011 C020001 IL
011 C030001 60181
012 A000001 VAN KAMPEN INVESTOR SERVICES INC.
012 B000001 84-01621
012 C010001 KANSAS CITY
012 C020001 MO
012 C030001 64141
012 C040001 9256
<PAGE> PAGE 2
013 A000001 PRICEWATERHOUSECOOPERS, LLP
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013 B030001 60601
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014 B000001 8-00733537
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<PAGE> PAGE 3
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022 C000006 250768
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022 C000007 111547
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022 B000008 13-5674085
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<PAGE> PAGE 4
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 9
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SIGNATURE NICK DALMASO
TITLE ATTORNEY
To the Shareholders and
Board of Trustees of
the Van Kampen Harbor Fund
In planning and performing our audit of the financial statements of Van Kampen
Harbor Fund (the "Fund") for the year ended December 31, 1998, we considered its
internal control, including control activities for safeguarding securities, in
order to determine our auditing procedures for the purpose of expressing our
opinion on the financial statements and to comply with the requirements of Form
N-SAR, not to provide assurance on internal control.
The management of the Fund is responsible for establishing and maintaining
internal control. In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and related costs of
control activities. Generally, control activities that are relevant to an audit
pertain to the entity's objective of preparing financial statements for external
purposes that are fairly presented in conformity with generally accepted
accounting principles. Those control activities include the safeguarding of
assets against unauthorized acquisition, use or disposition.
Because of inherent limitations in internal control, errors or irregularities
may occur and not be detected. Also, projection of any evaluation of internal
control to future periods is subject to the risk that it may become inadequate
because of changes in conditions or that the effectiveness of the design and
operation may deteriorate.
Our consideration of internal control would not necessarily disclose all matters
in internal control that might be material weaknesses under standards
established by the American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or operation of any
specific internal control components does not reduce to a relatively low level
the risk that errors or irregularities in amounts that would be material in
relation to the financial statements being audited may occur and not be detected
within a timely period by employees in the normal course of performing their
assigned functions. However, we noted no matters involving internal control,
including control activities for safeguarding securities, that we consider to be
material weaknesses as defined above as of December 31, 1998.
This report is intended solely for the information and use of management and the
Board of Trustees of the Fund and the Securities and Exchange Commission.
PRICEWATERHOUSECOOPERS LLP
Chicago, Illinois
February 3, 1999
<TABLE>
<CAPTION>
NSAR ITEM 77O
VKAC Harbor Fund
10f-3 Transactions
Underwriting # Underwriting Purchased From Amount of shares % of Date of
Purchased Underwriting Purchase
<S> <C> <C> <C> <C> <C>
1 Western Digital Goldman Sachs 4,000,000 0.355% 02/11/98
2 Western Digital Salomon Smith Barney 2,720,000 0.241% 02/11/98
3 Equity Corporation International Merrill Lynch 4,260,000 3.408% 02/19/98
4 Whole Foods Market BT Alex Brown 16,019,000 5.966% 02/25/98
5 El Paso Energy Capital Trust Donaldson, Lufkin & 135,750 2.263% 03/12/98
Jenrette
6 WinStar Communications, Inc. First Boston 85,800 2.145% 03/12/98
7 Healthsouth Corporation Salomon Smith Barney 6,000,000 1.200% 03/17/98
8 Swiss Life Insurance SBC Warburg 1,000,000 0.200% 04/08/98
MS
9 Chesapeake Energy Corp. Cvt.Pfd. Donaldson, Lufkin & 76,800 1.920% 04/17/98
MS Jenrette
10 Pride International, Inc. Salomon Smith Barney 11,123,000 2.175% 04/21/98
11 Texas Industires SBC Warburg 85,000 2.125% 06/02/98
12 General Growth Properties, Inc. Lehman Brothers 102,400 0.853% 06/05/98
13 Media One Group Lehman Bros. 64,200 0.247% 07/30/98
MS Goldman Sachs
14 NTL Inc. DLJ 4,300,000 0.860% 12/11/98
Goldman Sachs
BT Alex Brown
Chase Securities
15 At Home Network Merrill Lynch 6,840,000 1.800% 12/21/98
MS Goldman Sachs
</TABLE>
<PAGE>
Other Firms participating in Underwriting:
Underwriting for #1 & 2
Morgan Stanley Dean Witter
Underwriting for #3
ABN AMRO Incorporated
Morgan Stanley & Co. Incorporated
Underwriting for #4
Morgan Stanley Dean Witter
Underwriting for #6
Salomon Smith Barney
Morgan Stanley Dean Witter
NationsBanc Montgomery Securities LLC
Underwriting for #7
Bear, Stearns & Co. Inc.
Cowen & Company
Credit Suisse First Boston Corporation
J.P. Morgan Securities Inc.
Morgan Stanley & Co. Incorporated
NationsBanc Montgomery Securities LLC
PaineWebber Incorporated
<PAGE>
Underwriting for # 8
SBC Warburg Dillon Read
J.P. Morgan Securities Ltd.
Union Bank of Switzerland
Underwriting for #9
Donaldson, Lufkin & Jenrette
Bear, Stearns & Co. Inc.
Lehman Brothers
J.P. Morgan & Co.
Morgan Stanley Dean Witter
Underwriting for #10
Morgan Stanley & Co. Incorporated
Underwriting for #12
Goldman, Sachs & Co.
Morgan Stanley & Co. Incorporated
PaineWebber Incorporated
Prudential Securities Incorporated
SBC Warburg Dillon Read Inc.
UBS Securities LLC
BancAmerica Robertson Stephens
A.G. Edwards & Sons, Inc.
Everen Securities, Inc.
Advest, Inc.
Dain Rauscher Wessels
Fahnestock & Co. Inc.
Janney Montgomery Scott Inc.
Edward D. Jones & Co., LP
First of Michigan Corporation
Legg Mason Wood Walker, Incorporated
McDonald & Company Securities, Inc.
Piper Jaffray Inc.
Raymond James & Associates, Inc.
Stifel, Nicolaus & Company Incorporated
The Robinston-Humphrey Company, LLC
<PAGE>
Underwriting for #12 (con't)
Sutro & Co. Incorporated
Tucker Anthony Incorporated
Wheat First Securities, Inc.
Underwriting for #13
Lehman Brothers Inc.
Morgan Stanley & Co. Incorporated
Goldman, Sachs & Co.
BT Alex Brown
CIBC Oppenheimer Corp.
A.G. Edwards & Sons, Inc.
Everen Securities, Inc.
Paine Webber Incorporated
Prudential Securities Incorporated
Advest, Inc.
Robert W. Baird & Co. Incorporated
Dain Rauscher Wessels
D.A. Davidson & Co. Incorporated
Fahnestock & Co. Inc.
Edward D. Jones & Co., L.P.
Legg Mason Wood Walker, Incorporated
McDonald & Company Securities, Inc.
Piper Jaffray Inc.
Ragen Mac Kenzie Incorporated
Raymond James & Associates, Inc.
Muriel Siebert & Co., Inc.
Stifel, Nicolaus & Company, Incorporated
Sutro & Co. Incorporated
Tucker Anthony Incorporated
Wheat First Securities, Inc.
Underwriting for #14
Goldman Sachs
BT Alex Brown
Chase Securities
Underwriting for #15
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Morgan Stanley & Co. Incorporated
Goldman, Sachs & Co.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
<F1> This item relates to the Fund on a composite
basis and not on a class basis
</LEGEND>
<SERIES>
<NUMBER> 11
<NAME> HARBOR 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> 400,483,959 <F1>
<INVESTMENTS-AT-VALUE> 439,676,009 <F1>
<RECEIVABLES> 13,206,136 <F1>
<ASSETS-OTHER> 0 <F1>
<OTHER-ITEMS-ASSETS> 63,132 <F1>
<TOTAL-ASSETS> 452,945,277 <F1>
<PAYABLE-FOR-SECURITIES> 909,846 <F1>
<SENIOR-LONG-TERM-DEBT> 0 <F1>
<OTHER-ITEMS-LIABILITIES> 4,014,932 <F1>
<TOTAL-LIABILITIES> 4,924,778 <F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 328,235,828
<SHARES-COMMON-STOCK> 25,306,879
<SHARES-COMMON-PRIOR> 24,997,425
<ACCUMULATED-NII-CURRENT> 1,353,997 <F1>
<OVERDISTRIBUTION-NII> 0 <F1>
<ACCUMULATED-NET-GAINS> 3,902,103 <F1>
<OVERDISTRIBUTION-GAINS> 0 <F1>
<ACCUM-APPREC-OR-DEPREC> 40,695,575 <F1>
<NET-ASSETS> 375,430,789
<DIVIDEND-INCOME> 6,716,044 <F1>
<INTEREST-INCOME> 13,813,179 <F1>
<OTHER-INCOME> 0 <F1>
<EXPENSES-NET> (5,290,387)<F1>
<NET-INVESTMENT-INCOME> 15,238,836 <F1>
<REALIZED-GAINS-CURRENT> 21,993,591 <F1>
<APPREC-INCREASE-CURRENT> (6,888,564)<F1>
<NET-CHANGE-FROM-OPS> 30,343,863 <F1>
<EQUALIZATION> 0 <F1>
<DISTRIBUTIONS-OF-INCOME> (13,495,042)
<DISTRIBUTIONS-OF-GAINS> (18,851,717)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 12,927,991
<NUMBER-OF-SHARES-REDEEMED> (14,405,527)
<SHARES-REINVESTED> 1,786,990
<NET-CHANGE-IN-ASSETS> (1,012,184)
<ACCUMULATED-NII-PRIOR> 1,807,183 <F1>
<ACCUMULATED-GAINS-PRIOR> 4,507,515 <F1>
<OVERDISTRIB-NII-PRIOR> 0 <F1>
<OVERDIST-NET-GAINS-PRIOR> 0 <F1>
<GROSS-ADVISORY-FEES> 2,459,237 <F1>
<INTEREST-EXPENSE> 0 <F1>
<GROSS-EXPENSE> 5,290,387 <F1>
<AVERAGE-NET-ASSETS> 376,357,646
<PER-SHARE-NAV-BEGIN> 15.059
<PER-SHARE-NII> 0.520
<PER-SHARE-GAIN-APPREC> 0.546
<PER-SHARE-DIVIDEND> (0.537)
<PER-SHARE-DISTRIBUTIONS> (0.753)
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 14.835
<EXPENSE-RATIO> 1.02
<AVG-DEBT-OUTSTANDING> 0 <F1>
<AVG-DEBT-PER-SHARE> 0 <F1>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
<F1> This item relates to the Fund on a composite
basis and not on a class basis
</LEGEND>
<SERIES>
<NUMBER> 12
<NAME> HARBOR 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> 400,483,959 <F1>
<INVESTMENTS-AT-VALUE> 439,676,009 <F1>
<RECEIVABLES> 13,206,136 <F1>
<ASSETS-OTHER> 0 <F1>
<OTHER-ITEMS-ASSETS> 63,132 <F1>
<TOTAL-ASSETS> 452,945,277 <F1>
<PAYABLE-FOR-SECURITIES> 909,846 <F1>
<SENIOR-LONG-TERM-DEBT> 0 <F1>
<OTHER-ITEMS-LIABILITIES> 4,014,932 <F1>
<TOTAL-LIABILITIES> 4,924,778 <F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 67,746,734
<SHARES-COMMON-STOCK> 4,519,577
<SHARES-COMMON-PRIOR> 5,426,072
<ACCUMULATED-NII-CURRENT> 1,353,997 <F1>
<OVERDISTRIBUTION-NII> 0 <F1>
<ACCUMULATED-NET-GAINS> 3,902,103 <F1>
<OVERDISTRIBUTION-GAINS> 0 <F1>
<ACCUM-APPREC-OR-DEPREC> 40,695,575 <F1>
<NET-ASSETS> 66,687,397
<DIVIDEND-INCOME> 6,716,044 <F1>
<INTEREST-INCOME> 13,813,179 <F1>
<OTHER-INCOME> 0 <F1>
<EXPENSES-NET> (5,290,387)<F1>
<NET-INVESTMENT-INCOME> 15,238,836 <F1>
<REALIZED-GAINS-CURRENT> 21,993,591 <F1>
<APPREC-INCREASE-CURRENT> (6,888,564)<F1>
<NET-CHANGE-FROM-OPS> 30,343,863 <F1>
<EQUALIZATION> 0 <F1>
<DISTRIBUTIONS-OF-INCOME> (2,044,075)
<DISTRIBUTIONS-OF-GAINS> (3,468,896)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 949,046
<NUMBER-OF-SHARES-REDEEMED> (2,177,447)
<SHARES-REINVESTED> 321,906
<NET-CHANGE-IN-ASSETS> (14,602,171)
<ACCUMULATED-NII-PRIOR> 1,807,183 <F1>
<ACCUMULATED-GAINS-PRIOR> 4,507,515 <F1>
<OVERDISTRIB-NII-PRIOR> 0 <F1>
<OVERDIST-NET-GAINS-PRIOR> 0 <F1>
<GROSS-ADVISORY-FEES> 2,459,237 <F1>
<INTEREST-EXPENSE> 0 <F1>
<GROSS-EXPENSE> 5,290,387 <F1>
<AVERAGE-NET-ASSETS> 75,195,757
<PER-SHARE-NAV-BEGIN> 14.981
<PER-SHARE-NII> 0.397
<PER-SHARE-GAIN-APPREC> 0.547
<PER-SHARE-DIVIDEND> (0.417)
<PER-SHARE-DISTRIBUTIONS> (0.753)
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 14.755
<EXPENSE-RATIO> 1.81
<AVG-DEBT-OUTSTANDING> 0 <F1>
<AVG-DEBT-PER-SHARE> 0 <F1>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
<F1> This item relates to the Fund on a composite
basis and not on a class basis
</LEGEND>
<SERIES>
<NUMBER> 13
<NAME> HARBOR 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> 400,483,959 <F1>
<INVESTMENTS-AT-VALUE> 439,676,009 <F1>
<RECEIVABLES> 13,206,136 <F1>
<ASSETS-OTHER> 0 <F1>
<OTHER-ITEMS-ASSETS> 63,132 <F1>
<TOTAL-ASSETS> 452,945,277 <F1>
<PAYABLE-FOR-SECURITIES> 909,846 <F1>
<SENIOR-LONG-TERM-DEBT> 0 <F1>
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