<PAGE> 1
TABLE OF CONTENTS
<TABLE>
<S> <C>
Letter to Shareholders........................... 1
Economic Snapshot................................ 2
Portfolio Management Review...................... 3
Portfolio of Investments......................... 6
Statement of Assets and Liabilities.............. 8
Statement of Operations.......................... 9
Statement of Changes in Net Assets............... 10
Financial Highlights............................. 11
Notes to Financial Statements.................... 14
Report of Independent Accountants................ 19
</TABLE>
RES ANR 7/99
<PAGE> 2
LETTER TO SHAREHOLDERS
June 16, 1999
Dear Shareholder,
With the volatility that we've experienced in many financial markets in
recent months, some investors have sold securities because of uncertainty about
where the markets were going, only to be left rethinking whether they made the
right decision. We've witnessed this kind of market activity numerous times over
the past several years, sparked by concerns such as the impact of the Asian
economic crisis, high stock valuations, or, most recently, the stability of many
high-flying technology companies. While these fears eventually subsided,
investors who may have sold during this period were unable to reap the benefits
of the latest rally. That's partly because most of the recent big gains happened
in relatively short periods of time. This kind of volatility--and the danger of
making short-term decisions--highlights the importance of investing for the long
term, in accordance with your individual financial objectives.
Although the worst of the Asian crisis appears to be behind us, new concerns
are always emerging. In the coming months, we'll likely hear more about how the
year 2000 computer problem may affect the markets or that we're overdue for a
correction. While the markets could undoubtedly suffer as a result of these or
any number of other events, we encourage you to focus on your long-term
investment goals. Although nothing is certain, history has shown us that over
time, the markets tend to recover--and most investors want to be positioned to
take advantage of any recovery.
If you have concerns about market volatility or questions about how your
portfolio is structured to respond to these events, we encourage you to contact
your financial advisor. Your advisor can talk with you about sustaining a
long-term investment plan through a variety of market conditions. We hope that
Van Kampen Funds will play an important role as you and your advisor build a
portfolio designed to help you weather what the markets have in store.
Sincerely,
[SIG.]
Richard F. Powers III
Chairman
Van Kampen Asset Management Inc.
[SIG.]
Dennis J. McDonnell
President
Van Kampen Asset Management Inc.
1
<PAGE> 3
ECONOMIC SNAPSHOT
The economy continued to grow at a record pace. The nation's gross domestic
product, a measure of economic health, rose at an astounding 6.0 percent
annualized rate in the fourth quarter of 1998, and remained strong at 4.5
percent through the first quarter of 1999. Growth was fueled by an increase in
consumer spending even as retail prices inched upward. Consumer spending rose at
a 6.7 percent annualized rate in the first quarter of 1999-an 11-year record.
This willingness to spend was attributed to higher consumer confidence as a
result of the positive employment environment. Although U.S. exports declined,
the high level of spending on domestic goods and services compensated for this
weak spot.
Inflation remained low throughout most of the reporting period, although a
sharp increase in oil prices contributed to a recent boost in the consumer price
index, pointing to the potential for higher inflation in the months ahead. This
rise in inflation led the Federal Reserve to express a bias toward raising
interest rates in the near term, although it did not make any rate changes over
the past six months. Despite a lack of action by the Fed, long-term interest
rates continued to climb during this period due to market conditions.
Our outlook for the economy suggests that a moderate slowdown may be on the
horizon. Healthy job growth, which has been supporting the strong consumer
confidence and spending levels, showed signs of faltering toward the end of the
reporting period. However, a renewed optimism for corporate earnings, low
unemployment, and a vibrant housing market should provide some balance against a
slower job growth rate. Also, with the Asian economic crisis currently under
control and financial improvements in other parts of the world, we believe the
U.S. economy will remain strong even if growth slows somewhat in the near term.
INTEREST RATES AND INFLATION
May 31, 1997, through May 31, 1999
[LINE GRAPH]
<TABLE>
<CAPTION>
INTEREST RATES INFLATION
-------------- ---------
<S> <C> <C>
May 1997 5.6250 2.2000
6.5000 2.3000
6.0000 2.2000
Aug 1997 5.5000 2.2000
6.2500 2.2000
5.7500 2.1000
Nov 1997 5.6875 1.8000
6.5000 1.7000
5.5625 1.6000
Feb 1998 5.6250 1.4000
6.1250 1.4000
5.6250 1.4000
May 1998 5.6875 1.7000
6.0000 1.7000
5.5625 1.7000
Aug 1998 5.9375 1.6000
5.7500 1.5000
5.2500 1.5000
Nov 1998 4.8750 1.5000
4.0000 1.6000
4.8125 1.7000
Feb 1999 4.8750 1.6000
5.1250 1.7000
4.9375 2.3000
May 1999 4.5000 2.1000
</TABLE>
Interest rates are represented by the closing midline federal funds rate
on the last day of each month. Inflation is indicated by the annual
percent change of the Consumer Price Index for all urban consumers at
the end of each month.
2
<PAGE> 4
PORTFOLIO MANAGEMENT REVIEW
VAN KAMPEN RESERVE FUND
We recently spoke with the management team of the Van Kampen Reserve Fund about
the key events and economic forces that shaped the markets during the past
fiscal year. The team includes Reid Hill, portfolio manager, who has managed the
Fund since February 1998 and worked in the investment industry since 1995. He is
joined by Peter W. Hegel, chief investment officer for fixed-income investments.
The following excerpts reflect their views on the Fund's performance during the
12-month period ended May 31, 1999.
Q HOW WOULD YOU CHARACTERIZE THE MARKET CONDITIONS IN WHICH THE FUND
OPERATED DURING ITS FISCAL YEAR?
A In the first half of the reporting period, continuing instability overseas
triggered volatility in the domestic markets. However, a triple-action
rate cut by the Federal Reserve Board in the third quarter of 1998 soothed
troubled markets. In response, investors who recognized that the U.S. economy
remained fundamentally sound returned to the stock market with growing
enthusiasm. By the first quarter of 1999, the Dow Jones Industrial Average had
broken through the 10,000 point ceiling, and went on to climb past 11,000
points. However, the Fed shifted to a rate-tightening bias in late May, creating
jitters among equity investors. As a result, some nervous investors fled to more
stable shelter--including money market funds--as the Fund's fiscal year drew to
a close.
Q HOW DID YOU MANAGE THE FUND IN LIGHT OF THESE CONDITIONS?
A In your last report, we explained that our ideal allocation model was to
invest half of the Fund's assets in commercial paper, a third of its
assets in bank notes and CDs (certificates of deposit), and the remainder
among agency discount notes and repurchase agreements ("repos"). During the past
six months, we renewed our focus on commercial paper, where we found more value
than in the bank notes sector. However, the market volatility we experienced in
the final days of the reporting period prompted us to pursue the liquidity of
repos, thus creating an underweighting in the commercial paper sector at the end
of the fiscal year.
Within the commercial paper sector, we continued to select high-rated,
short-term corporate securities with ratings of at least A-1/P-1 from Moody's
and Standard & Poor's. These corporate securities provided income without
assuming excessive risk. We also continued to favor commercial paper with an
average maturity of 90 days or less. In the current interest-rate environment,
we believe there is little benefit in extending the portfolio's risk by
investing in longer-term paper, which provides only a minimally higher return.
3
<PAGE> 5
[GRAPH]
Q HOW DID THE FUND PERFORM DURING THE REPORTING PERIOD?
A The Van Kampen Reserve Fund continued to provide shareholders with
relative stability, daily liquidity at $1.00 per share, and a competitive
level of current income(1). As of May 31, 1999, the seven-day average
yield was 4.40 percent for Class A shares, 3.68 percent for Class B shares, and
3.67 percent for Class C shares, with an effective annual yield of 4.50 percent
for Class A shares, 3.75 percent for Class B shares, and 3.74 percent for Class
C shares.
For the year ended May 31, 1999, the Fund achieved a total return at net
asset value of 4.55 percent(2) for Class A shares, 3.78 percent(2) for Class B
shares, and 3.77 percent(2) for Class C shares. Including sales charges, the
Fund's total return was -0.22 percent for Class B shares, and 2.77 percent for
Class C shares. (Sales charges do not apply for Class A shares.) Please note
that the yield quotation more closely reflects the current earnings of the Fund
than the total return quotation. Of course, past performance is no guarantee of
future results.
The average total return for money market funds, as measured by Lipper
Analytical Services, was 4.58 percent over the same 12-month period. This return
reflects the performance of 30 qualifying funds, assuming reinvestment of all
distributions during the 12-month period.
(1)Fund shares are not guaranteed or insured by the U.S. government, and there
is no assurance that the Fund will be able to maintain a stable net asset
value of $1.00 per share.
(2)Total return assumes reinvestment of all distributions for the 12-month
period ended May 31, 1999.
4
<PAGE> 6
Q WHAT IS YOUR OUTLOOK FOR THE MARKET OVER THE COMING MONTHS?
A Once again, we find ourselves looking to the Fed for market direction. At
this point, we expect the Fed to impose a rate hike sometime during the
summer. (Editor's note: After the reporting period ended, the Fed raised
interest rates by 0.25 percent on June 30.) We believe the market is tentatively
anticipating and pricing a change in short-term interest rates, so it's unlikely
that the actual change would prompt dislocations in the market.
In conjunction with this outlook, we will maintain our pursuit of the ideal
allocation model described earlier in this report. At the same time, we'll look
to add value to the portfolio through careful security selection as we continue
to seek to achieve the Fund's objectives.
[SIG.]
Reid Hill
Portfolio Manager
[SIG.]
Peter W. Hegel
Chief Investment Officer
Fixed Income Investments
5
<PAGE> 7
PORTFOLIO OF INVESTMENTS
May 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Yield on
Amount Date of Amortized
(000) Description Purchase Maturity Cost
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS 19.8%
$ 8,900 Federal Home Loan Bank............... 5.016% 01/05/00 $ 8,899,169
17,940 Federal Home Loan Mortgage Corp.
Discount Note........................ 4.772 08/06/99 17,785,088
20,000 Federal National Mortgage Association
Discount Note........................ 4.837 06/24/99 19,939,689
12,720 Federal National Mortgage Association
Discount Note........................ 4.752 07/22/99 12,635,306
24,000 Federal National Mortgage Association
Discount Note........................ 4.862 09/22/99 23,642,167
18,107 Federal National Mortgage Association
Discount Note........................ 4.912 11/04/99 17,730,374
10,000 Federal National Mortgage Association
Medium Term Note..................... 4.783 06/30/99 10,009,481
25,000 Federal National Mortgage Association
Medium Term Note..................... 4.931 07/30/99 25,003,472
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS..................... 135,644,746
------------
CERTIFICATES OF DEPOSIT 20.8%
10,000 Bank of Nova Scotia.................. 5.100 02/09/00 9,997,995
25,000 Commerzbank, AG...................... 5.000 02/01/00 24,995,952
23,000 Dresdner Bank, AG.................... 4.810 06/07/99 22,999,993
20,000 National Westminster Bank Plc........ 5.010 01/07/00 19,994,395
20,200 Rabobank Nederland, NV............... 4.860 08/10/99 20,200,383
25,000 Societe Generale..................... 4.860 07/15/99 25,000,000
20,000 State Street Bank & Trust Co. ....... 4.860 06/15/99 20,000,000
------------
TOTAL CERTIFICATES OF DEPOSIT................................ 143,188,718
------------
COMMERCIAL PAPER 53.0%
25,000 Abbott Labs.......................... 4.819 06/17/99 24,946,667
25,000 American Express Co. ................ 4.849 07/28/99 24,810,396
25,000 American General Finance Corp........ 4.874 08/13/99 24,756,160
25,000 Associates Corp. of North America.... 4.839 06/07/99 24,980,000
25,000 Chevron USA, Inc..................... 4.838 06/01/99 25,000,000
25,000 CIT Group Holdings, Inc. ............ 4.799 06/22/99 24,930,583
25,000 Coca Cola Co. ....................... 4.788 06/03/99 24,993,389
</TABLE>
See Notes to Financial Statements
6
<PAGE> 8
PORTFOLIO OF INVESTMENTS (CONTINUED)
May 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Yield on
Amount Date of Amortized
(000) Description Purchase Maturity Cost
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
COMMERCIAL PAPER (CONTINUED)
$25,000 Ford Motor Credit Corp............... 4.827% 06/10/99 $ 24,970,062
20,000 General Electric Capital Corp........ 4.923 06/01/99 20,000,000
25,000 General Electric Capital Corp........ 4.899 08/05/99 24,782,431
25,000 IBM Credit Corp. .................... 4.771 06/28/99 24,910,938
25,000 John Deere Capital Corp.............. 4.858 07/07/99 24,880,000
25,000 Norwest Financial Inc. .............. 4.761 06/01/99 25,000,000
20,000 Prudential Funding Corp. ............ 4.853 06/01/99 20,000,000
25,000 Prudential Funding Corp. ............ 4.889 08/18/99 24,738,375
------------
TOTAL COMMERCIAL PAPER....................................... 363,699,001
------------
NOTES 6.5%
20,000 First Chicago Corp. National Bank.... 4.970 09/01/99 20,000,000
25,000 Lasalle National Bank................ 4.860 06/11/99 25,000,000
------------
TOTAL NOTES.................................................. 45,000,000
------------
REPURCHASE AGREEMENTS 39.1%
BankAmerica Securities ($135,296,000 par collateralized by
U.S. Government obligations in a pooled cash account, dated
05/28/99, to be sold on 06/01/99 at $135,368,910)............ 135,296,000
Warburg Dillon Read ($132,824,000 par collateralized by U.S.
Government obligations in a pooled cash account, dated
05/28/99 to be sold on 06/01/99 at $132,894,840)............. 132,824,000
------------
TOTAL REPURCHASE AGREEMENTS.................................. 268,120,000
------------
TOTAL INVESTMENTS 139.2% (A)................................ 955,652,465
LIABILITIES IN EXCESS OF OTHER ASSETS (39.2%)............... (269,336,225)
------------
NET ASSETS 100.0%........................................... $686,316,240
============
</TABLE>
(a) At May 31, 1999, cost is identical for both book and federal income tax
purposes.
See Notes to Financial Statements
7
<PAGE> 9
STATEMENT OF ASSETS AND LIABILITIES
May 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Total Investments, at amortized cost which approximates
market, including repurchase agreements of $268,120,000... $955,652,465
Receivables:
Fund Shares Sold.......................................... 3,141,280
Interest.................................................. 2,871,901
Other....................................................... 86,313
------------
Total Assets.......................................... 961,751,959
------------
LIABILITIES:
Payables:
Fund Shares Repurchased................................... 273,885,448
Distributor and Affiliates................................ 670,792
Investment Advisory Fee................................... 292,978
Income Distributions...................................... 22,912
Custodian Bank............................................ 9,386
Accrued Expenses............................................ 344,305
Trustees' Deferred Compensation and Retirement Plans........ 209,898
------------
Total Liabilities..................................... 275,435,719
------------
NET ASSETS.................................................. $686,316,240
============
NET ASSETS CONSIST OF:
Capital (par value of $.01 per share with an unlimited
number of shares authorized).............................. $686,335,133
Accumulated Undistributed Net Investment Income............. 43,171
Accumulated Net Realized Loss............................... (62,064)
------------
NET ASSETS.................................................. $686,316,240
============
MAXIMUM OFFERING PRICE PER SHARE:
Class A Shares:
Net Asset Value, Offering Price and Redemption Price per
share (Based on net assets of $529,609,515 and
529,626,999 shares of beneficial interest issued and
outstanding)............................................ $ 1.00
============
Class B Shares:
Net Asset Value and Offering Price per share (Based on
net assets of $129,787,484 and 129,788,943 shares of
beneficial interest issued and outstanding)............. $ 1.00
============
Class C Shares:
Net Asset Value and Offering Price per share (Based on
net assets of $26,919,241 and 26,923,579 shares of
beneficial interest issued and outstanding)............. $ 1.00
============
</TABLE>
See Notes to Financial Statements
8
<PAGE> 10
STATEMENT OF OPERATIONS
For the Year Ended May 31, 1999
- ---------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest.................................................... $43,073,518
-----------
EXPENSES:
Investment Advisory Fee..................................... 3,246,846
Distribution (12b-1) and Service Fees (Attributed to Classes
A, B and C of $901,403, $1,370,540 and $226,498,
respectively)............................................. 2,498,441
Shareholder Services........................................ 1,748,775
Custody..................................................... 170,096
Trustees' Fees and Related Expenses......................... 49,776
Legal....................................................... 24,140
Other....................................................... 597,745
-----------
Total Expenses.......................................... 8,335,819
Less Credits Earned on Overnight Cash Balances.......... 120,021
-----------
Net Expenses............................................ 8,215,798
-----------
NET INVESTMENT INCOME....................................... $34,857,720
===========
NET REALIZED GAIN........................................... $ 31,626
===========
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $34,889,346
===========
</TABLE>
See Notes to Financial Statements
9
<PAGE> 11
STATEMENT OF CHANGES IN NET ASSETS
For the Years Ended May 31, 1999 and 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended Year Ended
May 31, 1999 May 31, 1998
- ----------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income......................... $ 34,857,720 $ 24,003,578
Net Realized Gain/Loss........................ 31,626 (25,912)
---------------- ----------------
Change in Net Assets from Operations.......... 34,889,346 23,977,666
---------------- ----------------
Distributions from Net Investment Income:
Class A Shares.............................. (28,300,866) (20,677,191)
Class B Shares.............................. (5,631,517) (2,897,824)
Class C Shares.............................. (934,371) (402,667)
---------------- ----------------
Total Distributions........................... (34,866,754) (23,977,682)
---------------- ----------------
NET CHANGE IN NET ASSETS FROM INVESTMENT
ACTIVITIES.................................. 22,592 (16)
---------------- ----------------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold..................... 22,546,743,249 11,140,736,165
Net Asset Value of Shares Issued Through
Dividend Reinvestment....................... 34,866,754 23,977,682
Cost of Shares Repurchased.................... (22,668,497,361) (10,954,208,156)
---------------- ----------------
Net Change in Net Assets from Capital
Transactions................................ (86,887,358) 210,505,691
---------------- ----------------
TOTAL INCREASE/DECREASE IN NET ASSETS......... (86,864,766) 210,505,675
NET ASSETS:
Beginning of the Period....................... 773,181,006 562,675,331
---------------- ----------------
End of the Period (Including accumulated
undistributed net investment income of
$43,171 and $52,205,
respectively)............................... $ 686,316,240 $ 773,181,006
================ ================
</TABLE>
See Notes to Financial Statements
10
<PAGE> 12
FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for one share of
the Fund outstanding throughout the periods indicated.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended May 31,
-----------------------------------------------
Class A Shares 1999 1998 1997 1996 1995
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of the
Period.............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- -------
Net Investment Income................. .0449 .0467 .0440 .0465 .0434
Less Distributions from Net Investment
Income.............................. (.0449) (.0467) (.0440) (.0465) (.0434)
------- ------- ------- ------- -------
New Asset Value, End of the Period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Total Return.......................... 4.55% 4.78% 4.52% 4.75% 4.43%
Net Assets at End of the Period (In
millions)........................... $ 529.6 $ 634.1 $ 451.3 $ 440.3 $ 319.7
Ratio of Expenses to Average Net
Assets*(a).......................... 0.84% 1.02% 1.02% 1.07% 1.00%
Ratio of Net Investment Income to
Average Net Assets*................. 4.38% 4.60% 4.38% 4.62% 4.28%
</TABLE>
* For the years ended May 31, 1995 through 1997, 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%.
(a) The Ratio of Expenses to Average Net Assets does not reflect credits earned
on overnight cash balances. If these credits were reflected as a reduction
of expenses, the ratio would decrease by .01% for the year ended May 31,
1999.
See Notes to Financial Statements
11
<PAGE> 13
FINANCIAL HIGHLIGHTS (CONTINUED)
The following schedule presents financial highlights for one share of
the Fund outstanding throughout the periods indicated.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
April 18, 1995
Year Ended May 31, (Commencement of
------------------------------------- Distribution) to
Class B Shares 1999 1998 1997 1996 May 31, 1995
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
the Period.................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- -------
Net Investment Income......... .0374 .0391 .0363 .0388 .0047
Less Distributions from Net
Investment Income........... (.0374) (.0391) (.0363) (.0388) (.0047)
------- ------- ------- ------- -------
New Asset Value, End of the
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Total Return (a).............. 3.78% 3.99% 3.71% 3.95% .47%*
Net Assets at End of the
Period (In millions)........ $ 129.8 $ 123.0 $ 103.0 $ 81.5 $ 4.2
Ratio of Expenses to Average
Net Assets**(b)............. 1.63% 1.79% 1.77% 1.86% 1.76%
Ratio of Net Investment Income
to Average Net Assets**..... 3.71% 3.91% 3.70% 3.75% 3.52%
</TABLE>
* Non-Annualized
** For the period ended May 31, 1995 and the years ended May 31, 1996 and 1997,
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%.
(a) Total return is based upon net asset value which does not include payment of
the contingent deferred sales charge.
(b) The Ratio of Expenses to Average Net Assets does not reflect credits earned
on overnight cash balances. If these credits were reflected as a reduction
of expenses, the ratio would decrease by .01% for the year ended May 31,
1999.
See Notes to Financial Statements
12
<PAGE> 14
FINANCIAL HIGHLIGHTS (CONTINUED)
The following schedule presents financial highlights for one share of
the Fund outstanding throughout the periods indicated.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
April 18, 1995
Year Ended May 31, (Commencement of
------------------------------------- Distribution) to
Class C Shares 1999 1998 1997 1996 May 31, 1995
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
the Period.................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- -------
Net Investment Income......... .0373 .0392 .0362 .0387 .0049
Less Distributions from Net
Investment Income........... (.0373) (.0392) (.0362) (.0387) (.0049)
------- ------- ------- ------- -------
Net Asset Value, End of the
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Total Return (a).............. 3.77% 3.99% 3.72% 3.94% .49%*
Net Assets at End of the
Period (In millions)........ $ 26.9 $ 16.1 $ 8.4 $ 9.7 $ 0.6
Ratio of Expenses to Average
Net Assets**(b)............. 1.63% 1.78% 1.78% 1.87% 1.76%
Ratio of Net Investment Income
to Average Net Assets**..... 3.73% 3.91% 3.64% 3.81% 3.52%
</TABLE>
* Non-Annualized
** For the period ended May 31, 1995 and the years ended May 31, 1996 and 1997,
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%.
(a) Total return is based upon net asset value which does not include payment of
the contingent deferred sales charge.
(b) The Ratio of Expenses to Average Net Assets does not reflect credits earned
on overnight cash balances. If these credits were reflected as a reduction
of expenses, the ratio would decrease by .01% for the year ended May 31,
1999.
See Notes to Financial Statements
13
<PAGE> 15
NOTES TO FINANCIAL STATEMENTS
May 31, 1999
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen Reserve Fund (the "Fund") is organized as a Delaware business trust.
The Fund is an open-end diversified management investment company registered
under the Investment Company Act of 1940, as amended. The Fund's investment
objective is to seek protection of capital and high current income through
investments in U.S. dollar denominated money market securities. The Fund
commenced investment operations on July 12, 1974. The distribution of the Fund's
Class B and Class C shares commenced on April 18, 1995.
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 are valued at amortized cost, which
approximates market. Under this valuation method, a portfolio instrument is
valued at cost and any discount or premium is amortized to the maturity of the
instrument.
B. SECURITY TRANSACTIONS--Security transactions are recorded on a trade date
basis. Realized gains and losses are determined on an identified cost basis.
Interest income is recorded on an accrual 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 the value of the underlying security at not less than
the repurchase proceeds due the Fund.
14
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
May 31, 1999
- --------------------------------------------------------------------------------
C. 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, if any, to its shareholders.
Therefore, no provision for federal income taxes is required.
The Fund intends to utilize provisions of the federal income tax laws which
allow it to carry a realized capital loss forward for eight years following the
year of the loss and offset such losses against any future realized capital
gains. At May 31, 1999, the Fund had an accumulated capital loss carryforward
for tax purposes of $62,064 which will expire between May 31, 2001 and May 31,
2006.
Net realized gains or losses may differ for financial and tax reporting
purposes primarily as a result of post October 31 losses which may not be
recognized for tax purposes until the first day of the following fiscal year.
D. DISTRIBUTION OF INCOME AND GAINS--The Fund declares dividends daily from net
investment income and capital gains, if any, and automatically reinvests such
dividends daily. Shareholders can elect to receive the cash equivalent of their
daily dividends at each month end.
E. EXPENSE REDUCTIONS--During the year ended May 31, 1999, the Fund's custody
fee was reduced by $120,021 as a result of credits earned on overnight cash
balances.
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of the Fund's Investment Advisory Agreement, the Adviser will
provide facilities and investment advice to the Fund for an annual fee payable
monthly as follows:
<TABLE>
<CAPTION>
AVERAGE NET ASSETS % PER ANNUM
- ---------------------------------------------------------------------
<S> <C>
First $150 million.................................... .50 of 1%
Next $100 million..................................... .45 of 1%
Next $100 million..................................... .40 of 1%
Over $350 million..................................... .35 of 1%
</TABLE>
For the year ended May 31, 1999, the Fund recognized expenses of
approximately $24,100 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 May 31, 1999, the Fund recognized expenses of
approximately $227,500 representing Van Kampen Funds Inc.'s, or its affiliates'
(collectively "Van Kampen") cost of providing accounting services to the Fund.
15
<PAGE> 17
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
May 31, 1999
- --------------------------------------------------------------------------------
Van Kampen Investor Services Inc. ("VKIS"), an affiliate of the Adviser,
serves as the shareholder servicing agent for the Fund. For the year ended May
31, 1999, the Fund recognized expenses of approximately $1,146,300. 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
At May 31, 1999, capital aggregated $529,613,415, $129,798,384, and $26,923,334
for Classes A, B and C, respectively. For the year ended May 31, 1999,
transactions were as follows:
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------------------------------
<S> <C> <C>
Sales:
Class A............................. 20,964,963,416 $ 20,964,963,502
Class B............................. 1,241,941,716 1,241,941,716
Class C............................. 339,838,031 339,838,031
--------------- ----------------
Total Sales........................... 22,546,743,163 $ 22,546,743,249
=============== ================
Dividend Reinvestment:
Class A............................. 28,300,866 $ 28,300,866
Class B............................. 5,631,517 5,631,517
Class C............................. 934,371 934,371
--------------- ----------------
Total Dividend Reinvestment........... 34,866,754 $ 34,866,754
=============== ================
Repurchases:
Class A............................. (21,097,762,520) $(21,097,762,520)
Class B............................. (1,240,799,799) (1,240,799,799)
Class C............................. (329,935,042) (329,935,042)
--------------- ----------------
Total Repurchases..................... (22,668,497,361) $(22,668,497,361)
=============== ================
</TABLE>
16
<PAGE> 18
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
May 31, 1999
- ----------------------------------------------------------------------------
At May 31, 1998, capital aggregated $634,111,567, $123,024,950 and
$16,085,974 for Classes A, B and C, respectively. For the year ended May 31,
1998, transactions were as follows:
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------------------------------
<S> <C> <C>
Sales:
Class A............................. 10,148,446,425 $ 10,148,446,425
Class B............................. 844,805,255 844,805,255
Class C............................. 147,484,485 147,484,485
--------------- ----------------
Total Sales........................... 11,140,736,165 $ 11,140,736,165
=============== ================
Dividend Reinvestment:
Class A............................. 20,677,191 $ 20,677,191
Class B............................. 2,897,824 2,897,824
Class C............................. 402,667 402,667
--------------- ----------------
Total Dividend Reinvestment........... 23,977,682 $ 23,977,682
=============== ================
Repurchases:
Class A............................. (9,986,307,711) $ (9,986,307,711)
Class B............................. (827,716,565) (827,716,565)
Class C............................. (140,183,880) (140,183,880)
--------------- ----------------
Total Repurchases..................... (10,954,208,156) $(10,954,208,156)
=============== ================
</TABLE>
Class B and C shares are offered without a front end sales charge, but are
subject to a contingent deferred sales charge (CDSC). The CDSC 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. The
Class B and C shares bear the expense of their respective deferred sales
arrangements, including higher distribution
17
<PAGE> 19
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
May 31, 1999
- --------------------------------------------------------------------------------
and service fees and incremental transfer agency costs. Class B shares will
automatically convert to Class A shares after the eighth year following
purchase.
<TABLE>
<CAPTION>
CONTINGENT DEFERRED
SALES CHARGE
---------------------
YEAR OF REDEMPTION CLASS B CLASS C
- --------------------------------------------------------------------------
<S> <C> <C>
First............................................ 4.00% 1.00%
Second........................................... 4.00% None
Third............................................ 3.00% None
Fourth........................................... 2.50% None
Fifth............................................ 1.50% None
Sixth and Thereafter............................. None None
</TABLE>
For the year ended May 31, 1999, Van Kampen, as Distributor for the Fund,
received commissions on redeemed shares which were subject to a CDSC of
approximately $973,600. Sales charges do not represent expenses of the Fund.
4. 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 .15% of average daily net assets of
Class A shares and .90% each of Class B and Class C shares are accrued daily.
Included in these fees for the year ended May 31, 1999, are payments retained by
Van Kampen of approximately $1,204,500.
18
<PAGE> 20
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Trustees of
Van Kampen Reserve 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 Reserve Fund (the
"Fund") at May 31, 1999, 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 May 31, 1999 by
correspondence with the custodian, provide a reasonable basis for the opinion
expressed above.
PRICEWATERHOUSECOOPERS LLP
Chicago, Illinois
July 1, 1999
19
<PAGE> 21
VAN KAMPEN RESERVE FUND
BOARD OF TRUSTEES
J. MILES BRANAGAN
JERRY D. CHOATE
RICHARD M. DEMARTINI*
LINDA HUTTON HEAGY
R. CRAIG KENNEDY
JACK E. NELSON
DON G. POWELL*
PHILLIP B. ROONEY
FERNANDO SISTO
WAYNE W. WHALEN*
Chairman
SUZANNE H. WOOLSEY, PH.D
PAUL G. YOVOVICH
OFFICERS
RICHARD F. POWERS, III*
President
DENNIS J. MCDONNELL*
Executive Vice President and
Chief Investment Officer
A. THOMAS SMITH, III*
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
* "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.
20
<PAGE> 22
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.
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 11
<NAME> RESERVE FUND A
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAY-31-1999
<PERIOD-START> JUN-01-1998
<PERIOD-END> MAY-31-1999
<INVESTMENTS-AT-COST> 955,652,465<F1>
<INVESTMENTS-AT-VALUE> 955,652,465<F1>
<RECEIVABLES> 6,013,181<F1>
<ASSETS-OTHER> 28,136<F1>
<OTHER-ITEMS-ASSETS> 58,177<F1>
<TOTAL-ASSETS> 961,751,959<F1>
<PAYABLE-FOR-SECURITIES> 0<F1>
<SENIOR-LONG-TERM-DEBT> 0<F1>
<OTHER-ITEMS-LIABILITIES> 275,435,719<F1>
<TOTAL-LIABILITIES> 275,435,719<F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 529,613,415
<SHARES-COMMON-STOCK> 529,626,999
<SHARES-COMMON-PRIOR> 634,125,237
<ACCUMULATED-NII-CURRENT> 43,171<F1>
<OVERDISTRIBUTION-NII> 0<F1>
<ACCUMULATED-NET-GAINS> (62,064)<F1>
<OVERDISTRIBUTION-GAINS> 0<F1>
<ACCUM-APPREC-OR-DEPREC> 0<F1>
<NET-ASSETS> 529,609,515
<DIVIDEND-INCOME> 0<F1>
<INTEREST-INCOME> 43,073,518<F1>
<OTHER-INCOME> 0<F1>
<EXPENSES-NET> (8,215,798)<F1>
<NET-INVESTMENT-INCOME> 34,857,720<F1>
<REALIZED-GAINS-CURRENT> 31,626<F1>
<APPREC-INCREASE-CURRENT> 0<F1>
<NET-CHANGE-FROM-OPS> 34,889,346<F1>
<EQUALIZATION> 0<F1>
<DISTRIBUTIONS-OF-INCOME> (28,300,866)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 20,964,963,416
<NUMBER-OF-SHARES-REDEEMED> (21,097,762,520)
<SHARES-REINVESTED> 28,300,866
<NET-CHANGE-IN-ASSETS> (104,466,778)
<ACCUMULATED-NII-PRIOR> 52,205<F1>
<ACCUMULATED-GAINS-PRIOR> (93,690)<F1>
<OVERDISTRIB-NII-PRIOR> 0<F1>
<OVERDIST-NET-GAINS-PRIOR> 0<F1>
<GROSS-ADVISORY-FEES> 3,246,846<F1>
<INTEREST-EXPENSE> 0<F1>
<GROSS-EXPENSE> 8,335,819<F1>
<AVERAGE-NET-ASSETS> 645,492,198
<PER-SHARE-NAV-BEGIN> 1.000
<PER-SHARE-NII> 0.449
<PER-SHARE-GAIN-APPREC> 0.000
<PER-SHARE-DIVIDEND> (0.449)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 1.000
<EXPENSE-RATIO> 0.84
<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> RESERVE FUND B
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAY-31-1999
<PERIOD-START> JUN-01-1998
<PERIOD-END> MAY-31-1999
<INVESTMENTS-AT-COST> 955,652,465<F1>
<INVESTMENTS-AT-VALUE> 955,652,465<F1>
<RECEIVABLES> 6,013,181<F1>
<ASSETS-OTHER> 28,136<F1>
<OTHER-ITEMS-ASSETS> 58,177<F1>
<TOTAL-ASSETS> 961,751,959<F1>
<PAYABLE-FOR-SECURITIES> 0<F1>
<SENIOR-LONG-TERM-DEBT> 0<F1>
<OTHER-ITEMS-LIABILITIES> 275,435,719<F1>
<TOTAL-LIABILITIES> 275,435,719<F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 129,798,384
<SHARES-COMMON-STOCK> 129,788,943
<SHARES-COMMON-PRIOR> 123,015,509
<ACCUMULATED-NII-CURRENT> 43,171<F1>
<OVERDISTRIBUTION-NII> 0<F1>
<ACCUMULATED-NET-GAINS> (62,064)<F1>
<OVERDISTRIBUTION-GAINS> 0<F1>
<ACCUM-APPREC-OR-DEPREC> 0<F1>
<NET-ASSETS> 129,787,484
<DIVIDEND-INCOME> 0<F1>
<INTEREST-INCOME> 43,073,518<F1>
<OTHER-INCOME> 0<F1>
<EXPENSES-NET> (8,215,798)<F1>
<NET-INVESTMENT-INCOME> 34,857,720<F1>
<REALIZED-GAINS-CURRENT> 31,626<F1>
<APPREC-INCREASE-CURRENT> 0<F1>
<NET-CHANGE-FROM-OPS> 34,889,346<F1>
<EQUALIZATION> 0<F1>
<DISTRIBUTIONS-OF-INCOME> (5,631,517)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,241,941,716
<NUMBER-OF-SHARES-REDEEMED> (1,240,799,799)
<SHARES-REINVESTED> 5,631,517
<NET-CHANGE-IN-ASSETS> 6,769,306
<ACCUMULATED-NII-PRIOR> 52,205<F1>
<ACCUMULATED-GAINS-PRIOR> (93,690)<F1>
<OVERDISTRIB-NII-PRIOR> 0<F1>
<OVERDIST-NET-GAINS-PRIOR> 0<F1>
<GROSS-ADVISORY-FEES> 3,246,846<F1>
<INTEREST-EXPENSE> 0<F1>
<GROSS-EXPENSE> 8,335,819<F1>
<AVERAGE-NET-ASSETS> 152,007,487
<PER-SHARE-NAV-BEGIN> 1.000
<PER-SHARE-NII> 0.374
<PER-SHARE-GAIN-APPREC> 0.000
<PER-SHARE-DIVIDEND> (0.374)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 1.000
<EXPENSE-RATIO> 1.63
<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> RESERVE FUND C
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAY-31-1999
<PERIOD-START> JUN-01-1998
<PERIOD-END> MAY-31-1999
<INVESTMENTS-AT-COST> 955,652,465<F1>
<INVESTMENTS-AT-VALUE> 955,652,465<F1>
<RECEIVABLES> 6,013,181<F1>
<ASSETS-OTHER> 28,136<F1>
<OTHER-ITEMS-ASSETS> 58,177<F1>
<TOTAL-ASSETS> 961,751,959<F1>
<PAYABLE-FOR-SECURITIES> 0<F1>
<SENIOR-LONG-TERM-DEBT> 0<F1>
<OTHER-ITEMS-LIABILITIES> 275,435,719<F1>
<TOTAL-LIABILITIES> 275,435,719<F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 26,923,334
<SHARES-COMMON-STOCK> 26,923,579
<SHARES-COMMON-PRIOR> 16,086,219
<ACCUMULATED-NII-CURRENT> 43,171<F1>
<OVERDISTRIBUTION-NII> 0<F1>
<ACCUMULATED-NET-GAINS> (62,064)<F1>
<OVERDISTRIBUTION-GAINS> 0<F1>
<ACCUM-APPREC-OR-DEPREC> 0<F1>
<NET-ASSETS> 26,919,241
<DIVIDEND-INCOME> 0<F1>
<INTEREST-INCOME> 43,073,518<F1>
<OTHER-INCOME> 0<F1>
<EXPENSES-NET> (8,215,798)<F1>
<NET-INVESTMENT-INCOME> 34,857,720<F1>
<REALIZED-GAINS-CURRENT> 31,626<F1>
<APPREC-INCREASE-CURRENT> 0<F1>
<NET-CHANGE-FROM-OPS> 34,889,346<F1>
<EQUALIZATION> 0<F1>
<DISTRIBUTIONS-OF-INCOME> (934,371)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 339,838,031
<NUMBER-OF-SHARES-REDEEMED> (329,935,042)
<SHARES-REINVESTED> 934,371
<NET-CHANGE-IN-ASSETS> 10,832,706
<ACCUMULATED-NII-PRIOR> 52,205<F1>
<ACCUMULATED-GAINS-PRIOR> (93,690)<F1>
<OVERDISTRIB-NII-PRIOR> 0<F1>
<OVERDIST-NET-GAINS-PRIOR> 0<F1>
<GROSS-ADVISORY-FEES> 3,246,846<F1>
<INTEREST-EXPENSE> 0<F1>
<GROSS-EXPENSE> 8,335,819<F1>
<AVERAGE-NET-ASSETS> 25,055,837
<PER-SHARE-NAV-BEGIN> 1.000
<PER-SHARE-NII> 0.373
<PER-SHARE-GAIN-APPREC> 0.000
<PER-SHARE-DIVIDEND> (0.373)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 1.000
<EXPENSE-RATIO> 1.63
<FN>
<F1>This item relates to the Fund on a composite basis and not on a class basis
</FN>
</TABLE>
