<PAGE> 1
TABLE OF CONTENTS
<TABLE>
<S> <C>
Letter to Shareholders........................... 1
A Farewell from the Chairman..................... 3
Portfolio Management Review...................... 4
Portfolio of Investments......................... 7
Statement of Assets and Liabilities.............. 9
Statement of Operations.......................... 10
Statement of Changes in Net Assets............... 11
Financial Highlights............................. 12
Notes to Financial Statements.................... 15
</TABLE>
RES SAR 1/99
<PAGE> 2
LETTER TO SHAREHOLDERS
December 21, 1998
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 [PHOTO]
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 DENNIS J. MCDONNELL AND DON G. POWELL
investing, we are proud to announce
that Richard F. Powers III has joined
Van Kampen as President and Chief Executive Officer, and he will assume the
additional role of Chairman of Van Kampen in 1999. He comes to us from our
parent company, Morgan Stanley Dean Witter & Co., where he served as Executive
Vice President and Director of Marketing. Dick Powers brings 27 years of
experience in the financial services industry, including vast expertise in
product management, strategic planning, and brand development. While at Morgan
Stanley Dean Witter, he developed many of the firm's core products and services.
You'll hear more from Dick Powers in the coming months as he becomes
increasingly involved in matters related to your fund and joins Dennis McDonnell
in addressing you in future shareholder reports. (See Don Powell's farewell to
shareholders on page 3.)
ECONOMIC REVIEW
The economic picture changed from rosy to uncertain during the reporting
period, as the Asian financial crisis led 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 the past several months. With this backdrop,
American and foreign investors alike pursued a flight to quality--seeking the
relative safety of large-cap stocks and government bonds. In recent weeks,
however, the global financial situation has improved as dozens of foreign
central banks have reduced interest rates in an effort to stimulate their
economies.
Despite the global turmoil, the United States experienced only a moderate
slowdown in growth. In response to declining corporate profits and mounting
international concerns, the Federal Reserve lowered interest rates three times,
with 0.25 percent cuts in the federal funds rate 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,
albeit slowly. A continuation of low inflation--only a 1.5 percent increase in
the consumer price index over the last 12 months--also helped sustain the
domestic economy and keep inflation-adjusted interest rates attractive.
Continued on page 2
1
<PAGE> 3
OUTLOOK
We anticipate that the U.S. economy will continue to grow at a moderate pace
and that inflation will remain low. The global financial situation is already
showing signs of improvement, although the road to recovery will be steep and
slow. It should be aided in January by the launch of the euro, the new European
transnational currency.
In the long-term, we are optimistic that the stock market will continue its
record growth, although we anticipate significant volatility as the strength of
the market is tested. With declining profits and limited pricing power, many
corporations may produce disappointing earnings in 1999. Combined with growing
questions about corporate and government reactions to the Y2K computer problem,
we could see an increasingly nervous 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]
Don G. Powell
Chairman
Van Kampen Asset Management Inc.
[SIG]
Dennis J. McDonnell
President
Van Kampen Asset Management Inc.
2
<PAGE> 4
A FAREWELL FROM THE CHAIRMAN
------------------------ - ------------------------
Dear Shareholder,
Since I became president and chief executive officer in 1987, much has
changed in our business. However, one thing has remained constant through these
years--my commitment to you, the fund shareholder. Through the many events at
Van Kampen that have marked the passage of time--including several mergers,
company name changes, and leadership changes--we have always focused on
providing superior investment results and the highest level of customer service
to help you meet your investment objectives. I'm proud to say that during my
tenure, Van Kampen won eight consecutive awards for high-quality customer
service--more consecutive service awards than any other firm in the financial
services industry.(1) My successor, Dick Powers, shares this commitment to
meeting your needs and providing innovative and efficient ways to help you work
with your financial advisor to reach your financial goals.
Although my official retirement begins on January 1, 1999, I will remain
active in the industry and the community. I plan to continue my service as a
member of the board of directors of the Investment Company Institute, the
leading mutual fund industry association, and I will remain a trustee of your
Fund.
In closing, I want to say farewell to all of you. Thank you for your support
of Van Kampen over the years and for giving me the opportunity to serve you.
Best wishes,
[SIG]
Don G. Powell
------------------------ - ------------------------
(1)American Capital, which merged with Van Kampen in 1995, received the DALBAR
Service Award annually from 1990 to 1994. The award was called the Quality
Tested Service Seal until 1997.
3
<PAGE> 5
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 six
months. The team includes Reid Hill, portfolio manager, and Peter W. Hegel,
chief investment officer for fixed-income investments. The following excerpts
reflect their views on the Fund's performance during the six-month period ended
November 30, 1998.
Q HOW WOULD YOU CHARACTERIZE THE MARKET CONDITIONS IN WHICH THE FUND
OPERATED DURING THE PAST SIX MONTHS?
A Although the majority of the reporting period was dominated by global
instability, the market found a new source of inspiration during the last
few months of the period: the Federal Reserve Board. Domino-effect
currency devaluations in Asia, Eastern Europe, Russia, and Latin America
precipitated several months of market volatility as investors fled
risk-sensitive securities and embraced the relative safety of U.S. Treasuries.
The Dow Jones Industrial Average, which reached a record high in July, reflected
plummeting investor confidence by shedding approximately 1000 points in the
third quarter of 1998.
In September, however, a lull settled over the market as the Federal Reserve
Board implemented its first rate cut in two years. Investors, recognizing that
the U.S. economy remained fundamentally sound despite global uncertainty,
returned to the stock market with growing enthusiasm. As a result, the Dow
recovered much of its earlier losses. During the final weeks of the reporting
period, the Fed continued to support a thriving stock market and orchestrate a
turnaround in the global economy by approving two additional interest rate cuts
in quick succession. This triple-action rate cut lowered the federal funds rate
by a total of 75 basis points and stemmed lingering recession fears.
PORTFOLIO COMPOSITION BY INVESTMENT TYPE*
<TABLE>
<CAPTION>
AS OF NOVEMBER 30, 1998 AS OF MAY 31, 1998
<S> <C> <C> <C>
Commercial Paper........... 46.8% Commercial Paper.............. 67.1%
Certificate of Deposit..... 26.9% Repurchase Agreements......... 21.0%
Agencies................... 16.1% Agencies...................... 10.2%
Notes...................... 9.6% Certificate of Deposit........ 1.7%
Repurchase Agreements...... 0.6%
</TABLE>
* As a Percentage of Total Investments
4
<PAGE> 6
Q HOW DID YOU MANAGE THE FUND IN LIGHT OF THESE CONDITIONS?
A We've made some changes in how the Fund's assets are allocated.
Historically, the Fund has had four investment options that allow the
portfolio to remain relatively liquid: bank notes and CDs (certificates of
deposit), repurchase agreements ("repos," which are basically overnight
government notes), commercial paper, and agency discount notes. Historically, we
favored commercial paper as a primary instrument because it offered the most
value. However, in the wake of the latest market rally, those investments became
significantly overpriced. Conversely, we began to see increased value in the
bank notes sector. As a result, we reduced the Fund's weighting in commercial
paper and instead focused on increasing our allocation to bank notes and CDs. At
the end of the period, the portfolio reflected a decrease in highly liquid repos
as well. Ultimately, we're leaning toward an ideal portfolio with half of its
assets invested in commercial paper, a quarter of its assets in bank notes and
CDs, and the remainder distributed among agency notes and repos.
As the primary sector in the portfolio, the commercial paper held by the
Fund is comprised of 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
provide income without assuming excessive risk. Due to a flat yield curve, the
majority of commercial paper held in the portfolio has an average maturity of 90
days or less. In the current interest rate environment, there is little benefit
in extending the portfolio's risk by investing in longer-term paper, because it
provides only a minimally higher return.
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(1), and a
competitive level of current income. As of November 30, 1998, the
seven-day average yield was 4.71 percent, 3.97 percent, and 3.85 percent for
Class A, B, and C shares, respectively, with an effective annual yield of 4.82
percent, 4.05 percent, and 3.92 percent for Class A, B, and C shares,
respectively. From May 31, 1998, through November 30, 1998, the Fund achieved a
total return at net asset value of 2.42 percent(2) for Class A shares, 2.04
percent(2) for Class B shares, and 2.03 percent(2) for Class C shares. The yield
quotation more closely reflects the current earnings of the Fund than the total
return quotation. The average total return for money market funds, as measured
by Lipper Analytical Services, was 2.39 percent over the same six-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 six-month
period ended November 30, 1998.
5
<PAGE> 7
Q WHAT IS YOUR OUTLOOK FOR THE MARKET OVER THE COMING MONTHS?
A The lingering question, which may be settled as early as the Fed's next
meeting on December 22, is: after three consecutive rate cuts, is the Fed
finished? We expect to find our answer by watching how spread products,
which include high-yield investments, corporate bonds, and mortgage-backed
securities, behave for the remainder of the year. We'll also be monitoring the
domestic economy environment for signs of a slowdown. Our expectation is that
the economy will continue to grow at a slow and steady pace, unlike the robust
rate we've seen during the past year.
We are pleased with the current asset allocation featured in the Fund's
portfolio and plan to maintain a similar profile in light of our current
economic snapshot. As we monitor changing economic developments, we will
continue to pursue the Fund's objectives and will look to add value through
careful security selection.
[SIG.]
Reid Hill
Portfolio Manager
[SIG.]
Peter W. Hegel
Chief Investment Officer
Fixed Income Investments
6
<PAGE> 8
PORTFOLIO OF INVESTMENTS
November 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Discount
Par Yield on
Amount Date of Amortized
(000) Description Purchase Maturity Cost
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS 9.9%
$ 1,040 Federal Home Loan Mortgage Corp Discount
Note.......................................... 5.372% 12/11/98 $ 1,038,469
10,000 Federal Home Loan Mortgage Corp Discount
Note.......................................... 4.785 12/17/98 9,978,889
12,703 Federal Home Loan Mortgage Corp Discount
Note.......................................... 5.141 01/15/99 12,622,653
20,000 Federal National Mortgage Association Discount
Note.......................................... 4.863 02/02/99 19,831,999
20,000 Federal National Mortgage Association Medium
Term Note..................................... 5.592 04/28/99 19,995,945
20,000 Student Loan Marketing Share Term Note........ 5.490 02/18/99 20,000,000
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS........................... 83,467,955
------------
CERTIFICATES OF DEPOSIT 16.7%
25,000 Bank of Nova Scotia........................... 5.100 01/22/99 25,000,622
20,000 Bayerische Landesbank......................... 5.100 02/24/99 20,000,811
25,000 Canadian Imperial Bank........................ 5.350 03/30/99 25,031,875
20,000 Societe Generale.............................. 5.560 12/17/98 20,000,658
25,000 UBS Stamford AG............................... 5.290 01/05/99 24,998,542
25,000 Westdeutcshe Landesbank Giroz................. 5.110 01/21/99 25,000,629
------------
TOTAL CERTIFICATES OF DEPOSIT...................................... 140,033,137
------------
COMMERCIAL PAPER 29.0%
25,000 American Express Co........................... 5.464 12/07/98 24,977,541
25,000 American General Finance Corp................. 5.211 01/12/99 24,850,083
25,000 Associates Corp. of North America............. 5.150 03/08/99 24,659,153
25,000 Coca Cola Co.................................. 5.047 12/03/98 24,993,028
25,000 Commercial Credit Corp........................ 5.231 01/19/99 24,823,396
25,000 Ford Motor Credit Corp........................ 5.198 02/18/99 24,718,563
25,000 General Electric Capital Corp................. 5.301 02/12/99 24,734,868
15,000 New York St Power Auth Rev & Genl Purp Ser
D............................................. 5.881 02/15/99 15,000,000
30,000 Norwest Financial Inc......................... 5.477 12/18/98 29,923,500
25,000 Prudential Funding Corp....................... 5.251 02/19/99 24,712,222
------------
TOTAL COMMERCIAL PAPER............................................. 243,392,354
------------
NOTES 5.9%
25,000 First Chicago Corp. National Bank............. 5.090 01/25/99 25,000,000
25,000 Lasalle National Bank......................... 5.210 03/16/99 25,000,000
------------
TOTAL NOTES........................................................ 50,000,000
------------
</TABLE>
See Notes to Financial Statements
7
<PAGE> 9
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Amortized
Description Cost
- ------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT 0.4%
BankAmerica Securities ($3,100,000 par collateralized by U.S.
Government obligations in a pooled cash account, dated 11/30/98, to
be sold on 12/01/98 at $3,100,465)................................. $ 3,100,000
------------
TOTAL INVESTMENTS 61.9% (A)....................................... 519,993,446
OTHER ASSETS IN EXCESS OF LIABILITIES 38.1%................................ 320,309,611
------------
NET ASSETS 100.0%.......................................................... $840,303,057
============
</TABLE>
(a) At November 30, 1998, cost is identical for both book and federal income tax
purposes.
See Notes to Financial Statements
8
<PAGE> 10
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Total Investments, at Amortized Cost which Approximates
Market.................................................... $519,993,446
Receivables:
Fund Shares Sold.......................................... 339,048,251
Interest.................................................. 2,814,564
Other....................................................... 81,334
------------
Total Assets............................................ 861,937,595
------------
LIABILITIES:
Payables:
Fund Shares Repurchased................................... 20,466,300
Distributor and Affiliates................................ 512,991
Investment Advisory Fee................................... 220,401
Income Distributions...................................... 33,621
Custodian Bank............................................ 526
Accrued Expenses............................................ 202,491
Trustees' Deferred Compensation and Retirement Plans........ 198,208
------------
Total Liabilities....................................... 21,634,538
------------
NET ASSETS.................................................. $840,303,057
============
NET ASSETS CONSIST OF:
Capital..................................................... $840,345,052
Accumulated Undistributed Net Investment Income............. 24,457
Accumulated Net Realized Loss............................... (66,452)
------------
NET ASSETS.................................................. $840,303,057
============
MAXIMUM OFFERING PRICE PER SHARE:
Class A Shares:
Net Asset Value, Offering Price and Redemption Price per
share (Based on net assets of $710,626,148 and
710,675,613 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 $111,654,714 and 111,651,961 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 $18,022,195 and 18,021,954 shares of
beneficial interest issued and outstanding)............. $ 1.00
============
</TABLE>
See Notes to Financial Statements
9
<PAGE> 11
STATEMENT OF OPERATIONS
For the Six Months Ended November 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest.................................................... $21,710,856
-----------
EXPENSES:
Investment Advisory Fee..................................... 1,557,324
Distribution (12b-1) and Service Fees (Attributed to Classes
A, B and C of $421,793, $652,843 and $110,080,
respectively)............................................. 1,184,716
Shareholder Services........................................ 845,869
Trustees' Fees and Expenses................................. 23,886
Legal....................................................... 23,790
Custody..................................................... 4,575
Other....................................................... 246,980
-----------
Total Expenses.......................................... 3,887,140
-----------
NET INVESTMENT INCOME....................................... $17,823,716
===========
NET REALIZED GAIN........................................... $ 27,238
===========
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $17,850,954
===========
</TABLE>
See Notes to Financial Statements
10
<PAGE> 12
STATEMENT OF CHANGES IN NET ASSETS
For the Six Months Ended November 30, 1998
and the Year Ended May 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended Year Ended
November 30, 1998 May 31, 1998
- ----------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income.............................. $ 17,823,716 $ 24,003,578
Net Realized Gain/Loss............................. 27,238 (25,912)
-------------- ----------------
Change in Net Assets from Operations............... 17,850,954 23,977,666
-------------- ----------------
Distributions from Net Investment Income:
Class A Shares................................... (14,414,547) (20,677,191)
Class B Shares................................... (2,940,559) (2,897,824)
Class C Shares................................... (496,358) (402,667)
-------------- ----------------
Total Distributions................................ (17,851,464) (23,977,682)
-------------- ----------------
NET CHANGE IN NET ASSETS FROM INVESTMENT
ACTIVITIES....................................... (510) (16)
-------------- ----------------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold.......................... 9,796,731,537 11,140,736,165
Net Asset Value of Shares Issued Through Dividend
Reinvestment..................................... 17,851,464 23,977,682
Cost of Shares Repurchased......................... (9,747,460,440) (10,954,208,156)
-------------- ----------------
Net Change in Net Assets from Capital
Transactions..................................... 67,122,561 210,505,691
-------------- ----------------
TOTAL INCREASE IN NET ASSETS....................... 67,122,051 210,505,675
NET ASSETS:
Beginning of the Period............................ 773,181,006 562,675,331
-------------- ----------------
End of the Period (Including accumulated
undistributed net investment income of $24,457
and $52,205, respectively)....................... $ 840,303,057 $ 773,181,006
============== ================
</TABLE>
See Notes to Financial Statements
11
<PAGE> 13
FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for one share of
the Fund outstanding throughout the periods indicated. (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended May 31,
Six Months Ended ----------------------------------------------
Class A Shares November 30, 1998 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.......... .0240 .0467 .0440 .0465 .0434
Less Distributions from Net
Investment Income............ (.0240) (.0467) (.0440) (.0465) (.0434)
-------- ------- ------- ------- -------
Net Asset Value, End of the
Period....................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======= ======= ======= =======
Total Return................... 2.42%* 4.78% 4.52% 4.75% 4.43%
Net Assets at End of the Period
(in millions)................ $ 710.6 $ 634.1 $ 451.3 $ 440.3 $ 319.7
Ratio of Expenses to Average
Net Assets**................. 0.82% 1.02% 1.02% 1.07% 1.00%
Ratio of Net Investment Income
to Average Net Assets**...... 4.68% 4.60% 4.38% 4.62% 4.28%
</TABLE>
*Non-Annualized
**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%.
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. (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months April 18, 1995
Ended Year Ended May 31, (Commencement of
November 30, --------------------------------- Distribution) to
Class B Shares 1998 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.......... .0203 .0391 .0363 .0388 .0047
Less Distributions from Net
Investment Income............ (.0203) (.0391) (.0363) (.0388) (.0047)
------- ------- ------- ------- --------
Net Asset Value, End of the
Period....................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ========
Total Return (a)............... 2.04%* 3.99% 3.71% 3.95% .47%*
Net Assets at End of the Period
(in millions)................ $ 111.7 $ 123.0 $ 103.0 $ 81.5 $ 4.2
Ratio of Expenses to Average
Net Assets**................. 1.60% 1.79% 1.77% 1.86% 1.76%
Ratio of Net Investment Income
to Average Net Assets**...... 4.02% 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.
See Notes to Financial Statements
13
<PAGE> 15
FINANCIAL HIGHLIGHTS (CONTINUED)
The following schedule presents financial highlights for one share of
the Fund outstanding throughout the periods indicated. (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months April 18, 1995
Ended Year Ended May 31, (Commencement of
November 30, --------------------------------- Distribution) to
Class C Shares 1998 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.......... .0201 .0392 .0362 .0387 .0049
Less Distributions from Net
Investment Income............ (.0201) (.0392) (.0362) (.0387) (.0049)
------- ------- ------- ------- -------
Net Asset Value, End of the
Period....................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Total Return (a)............... 2.03%* 3.99% 3.72% 3.94% .49%*
Net Assets at End of the Period
(in millions)................ $ 18.0 $ 16.1 $ 8.4 $ 9.7 $ 0.6
Ratio of Expenses to Average
Net Assets**................. 1.61% 1.78% 1.78% 1.87% 1.76%
Ratio of Net Investment Income
to Average Net Assets**...... 4.05% 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.
See Notes to Financial Statements
14
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS
November 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen Reserve Fund, formerly known as Van Kampen American Capital 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.
15
<PAGE> 17
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
November 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
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, 1998, the Fund had an accumulated capital loss carryforward
for tax purposes of $66,693 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 automatically reinvests such dividends daily. Net realized
gains, if any, are distributed annually. Shareholders can elect to receive the
cash equivalent of their daily dividends at each month end.
2. INVESTMENT ADVISORY FEES 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 six months ended November 30, 1998, the Fund recognized expenses of
approximately $23,800 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 six months ended May 31, 1998, the Fund recognized expenses of
approximately $126,800 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 six months ended
November 30, 1998,
16
<PAGE> 18
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
November 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
the Fund recognized expenses of approximately $504,900. 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. There are an unlimited number of shares of each class with a par
value of $0.01 per share.
At November 30, 1998, capital aggregated $710,661,942, $111,661,401 and
$18,021,709 for Classes A, B and C, respectively. For the six months ended
November 30, 1998, transactions were as follows:
<TABLE>
<CAPTION>
SHARES VALUE
- -------------------------------------------------------------------------
<S> <C> <C>
Sales:
Class A.............................. 9,015,039,316 $ 9,015,039,316
Class B.............................. 614,635,454 614,635,454
Class C.............................. 167,056,767 167,056,767
-------------- ---------------
Total Sales............................ 9,796,731,537 $ 9,796,731,537
============== ===============
Dividend Reinvestment:
Class A.............................. 14,414,548 $ 14,414,548
Class B.............................. 2,940,558 2,940,558
Class C.............................. 496,358 496,358
-------------- ---------------
Total Dividend Reinvestment............ 17,851,464 $ 17,851,464
============== ===============
Repurchases:
Class A.............................. (8,952,903,489) $(8,952,903,489)
Class B.............................. (628,939,561) (628,939,561)
Class C.............................. (165,617,390) (165,617,390)
-------------- ---------------
Total Repurchases...................... (9,747,460,440) $(9,747,460,440)
============== ===============
</TABLE>
17
<PAGE> 19
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
November 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
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 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>
18
<PAGE> 20
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
November 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
For the six months ended November 30, 1998, Van Kampen, as Distributor for
the Fund, received commissions on redeemed shares which were subject to a CDSC
of approximately $373,600. 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 six months ended November 30, 1998, are payments
retained by Van Kampen of approximately $587,600.
19
<PAGE> 21
VAN KAMPEN RESERVE 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
* "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 which, 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 redemption 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> 6-MOS
<FISCAL-YEAR-END> MAY-31-1999
<PERIOD-START> JUN-01-1998
<PERIOD-END> NOV-30-1998
<INVESTMENTS-AT-COST> 519,993,446<F1>
<INVESTMENTS-AT-VALUE> 519,993,446<F1>
<RECEIVABLES> 341,862,815<F1>
<ASSETS-OTHER> 28,136<F1>
<OTHER-ITEMS-ASSETS> 53,198<F1>
<TOTAL-ASSETS> 861,937,595<F1>
<PAYABLE-FOR-SECURITIES> 0<F1>
<SENIOR-LONG-TERM-DEBT> 0<F1>
<OTHER-ITEMS-LIABILITIES> 21,634,538<F1>
<TOTAL-LIABILITIES> 21,634,538<F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 710,661,942
<SHARES-COMMON-STOCK> 710,675,612
<SHARES-COMMON-PRIOR> 634,125,237
<ACCUMULATED-NII-CURRENT> 24,457<F1>
<OVERDISTRIBUTION-NII> 0<F1>
<ACCUMULATED-NET-GAINS> (66,452)<F1>
<OVERDISTRIBUTION-GAINS> 0<F1>
<ACCUM-APPREC-OR-DEPREC> 0<F1>
<NET-ASSETS> 710,626,148
<DIVIDEND-INCOME> 0<F1>
<INTEREST-INCOME> 21,710,856<F1>
<OTHER-INCOME> 0<F1>
<EXPENSES-NET> (3,887,140)<F1>
<NET-INVESTMENT-INCOME> 17,823,716<F1>
<REALIZED-GAINS-CURRENT> 27,238<F1>
<APPREC-INCREASE-CURRENT> 0<F1>
<NET-CHANGE-FROM-OPS> 17,850,954<F1>
<EQUALIZATION> 0<F1>
<DISTRIBUTIONS-OF-INCOME> (14,414,547)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 9,015,039,316
<NUMBER-OF-SHARES-REDEEMED> (8,952,903,489)
<SHARES-REINVESTED> 14,414,548
<NET-CHANGE-IN-ASSETS> 76,549,855
<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> 1,557,324<F1>
<INTEREST-EXPENSE> 0<F1>
<GROSS-EXPENSE> 3,887,140<F1>
<AVERAGE-NET-ASSETS> 613,047,868
<PER-SHARE-NAV-BEGIN> 1.000
<PER-SHARE-NII> 0.024
<PER-SHARE-GAIN-APPREC> 0.000
<PER-SHARE-DIVIDEND> (0.024)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 1.000
<EXPENSE-RATIO> 0.82
<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> RESERVE FUND B
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-1999
<PERIOD-START> JUN-01-1998
<PERIOD-END> NOV-30-1998
<INVESTMENTS-AT-COST> 519,993,446<F1>
<INVESTMENTS-AT-VALUE> 519,993,446<F1>
<RECEIVABLES> 341,862,815<F1>
<ASSETS-OTHER> 28,136<F1>
<OTHER-ITEMS-ASSETS> 53,198<F1>
<TOTAL-ASSETS> 861,937,595<F1>
<PAYABLE-FOR-SECURITIES> 0<F1>
<SENIOR-LONG-TERM-DEBT> 0<F1>
<OTHER-ITEMS-LIABILITIES> 21,634,538<F1>
<TOTAL-LIABILITIES> 21,634,538<F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 111,661,401
<SHARES-COMMON-STOCK> 111,651,960
<SHARES-COMMON-PRIOR> 123,015,509
<ACCUMULATED-NII-CURRENT> 24,457<F1>
<OVERDISTRIBUTION-NII> 0<F1>
<ACCUMULATED-NET-GAINS> (66,452)<F1>
<OVERDISTRIBUTION-GAINS> 0<F1>
<ACCUM-APPREC-OR-DEPREC> 0<F1>
<NET-ASSETS> 111,654,714
<DIVIDEND-INCOME> 0<F1>
<INTEREST-INCOME> 21,710,856<F1>
<OTHER-INCOME> 0<F1>
<EXPENSES-NET> (3,887,140)<F1>
<NET-INVESTMENT-INCOME> 17,823,716<F1>
<REALIZED-GAINS-CURRENT> 27,238<F1>
<APPREC-INCREASE-CURRENT> 0<F1>
<NET-CHANGE-FROM-OPS> 17,850,954<F1>
<EQUALIZATION> 0<F1>
<DISTRIBUTIONS-OF-INCOME> (2,940,559)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 614,635,454
<NUMBER-OF-SHARES-REDEEMED> (629,939,561)
<SHARES-REINVESTED> 2,940,558
<NET-CHANGE-IN-ASSETS> (11,366,217)
<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> 1,557,324<F1>
<INTEREST-EXPENSE> 0<F1>
<GROSS-EXPENSE> 3,887,140<F1>
<AVERAGE-NET-ASSETS> 145,689,860
<PER-SHARE-NAV-BEGIN> 1.000
<PER-SHARE-NII> 0.020
<PER-SHARE-GAIN-APPREC> 0.000
<PER-SHARE-DIVIDEND> (0.020)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 1.000
<EXPENSE-RATIO> 1.60
<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> RESERVE FUND C
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-1999
<PERIOD-START> JUN-01-1998
<PERIOD-END> NOV-30-1998
<INVESTMENTS-AT-COST> 519,993,446<F1>
<INVESTMENTS-AT-VALUE> 519,993,446<F1>
<RECEIVABLES> 341,862,815<F1>
<ASSETS-OTHER> 28,136<F1>
<OTHER-ITEMS-ASSETS> 53,198<F1>
<TOTAL-ASSETS> 861,937,595<F1>
<PAYABLE-FOR-SECURITIES> 0<F1>
<SENIOR-LONG-TERM-DEBT> 0<F1>
<OTHER-ITEMS-LIABILITIES> 21,634,538<F1>
<TOTAL-LIABILITIES> 21,634,538<F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 18,021,709
<SHARES-COMMON-STOCK> 18,021,954
<SHARES-COMMON-PRIOR> 16,086,219
<ACCUMULATED-NII-CURRENT> 24,457<F1>
<OVERDISTRIBUTION-NII> 0<F1>
<ACCUMULATED-NET-GAINS> (66,452)<F1>
<OVERDISTRIBUTION-GAINS> 0<F1>
<ACCUM-APPREC-OR-DEPREC> 0<F1>
<NET-ASSETS> 18,022,195
<DIVIDEND-INCOME> 0<F1>
<INTEREST-INCOME> 21,710,856<F1>
<OTHER-INCOME> 0<F1>
<EXPENSES-NET> (3,887,140)<F1>
<NET-INVESTMENT-INCOME> 17,823,716<F1>
<REALIZED-GAINS-CURRENT> 27,238<F1>
<APPREC-INCREASE-CURRENT> 0<F1>
<NET-CHANGE-FROM-OPS> 17,850,954<F1>
<EQUALIZATION> 0<F1>
<DISTRIBUTIONS-OF-INCOME> (496,358)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 167,056,767
<NUMBER-OF-SHARES-REDEEMED> (165,617,390)
<SHARES-REINVESTED> 496,358
<NET-CHANGE-IN-ASSETS> 1,935,660
<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> 1,557,324<F1>
<INTEREST-EXPENSE> 0<F1>
<GROSS-EXPENSE> 3,887,140<F1>
<AVERAGE-NET-ASSETS> 24,436,456
<PER-SHARE-NAV-BEGIN> 1.000
<PER-SHARE-NII> 0.020
<PER-SHARE-GAIN-APPREC> 0.000
<PER-SHARE-DIVIDEND> (0.020)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 1.000
<EXPENSE-RATIO> 1.61
<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>
