<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
</TABLE>
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE.
<PAGE> 2
LETTER TO SHAREHOLDERS
December 20, 1999
Dear Shareholder,
As we approach the end of the century--and the millennium--it seems
appropriate to take a look back at the progress that's been made over the last
100 years and how the world of investing has changed over the generations.
Although rapid advances in technology and science have dramatically altered the
world that we live in today, one of the greatest shifts we've seen this century
is the increasing importance of investing for many Americans.
Once considered primarily for the wealthy, investing in the stock market is
now available to most people. In fact, almost 79 million individuals--who
represent almost half of all U.S. households--own stocks either directly or
through mutual funds. This is even more impressive when considering that just 16
years earlier, only 19 percent of households owned stocks. Another important
shift has been the need for retirement planning beyond a pension plan or Social
Security. The Investment Company Institute, the leading mutual fund industry
association, reports that 77 percent of all mutual fund shareholders earmarked
retirement as their primary financial goal in 1998.
Through all the changes in the investment environment over the past century,
the general principles that have made generations of investors successful remain
the same. Those that have stood the test of time include:
- Investing for the long-term
- Basing investment decisions on sound research
- Building a diversified portfolio
- Believing in the value of professional investment advice
While no one can predict the future, at Van Kampen, we believe that these
ideas will remain important tenets for investors well into the next century. As
we continue to focus on these principles, we hope that our decades of investment
experience can help bring you closer to your financial goals as we enter the new
millennium.
Sincerely,
[SIG.]
Richard F. Powers III
Chairman
Van Kampen Asset Management Inc.
[SIG.]
Dennis J. McDonnell
President
Van Kampen Asset Management Inc.
Source: Investment Company Institute
1
<PAGE> 3
ECONOMIC SNAPSHOT
ECONOMIC GROWTH
Americans continued their spending spree, keeping the economy growing at a
brisk pace. High levels of consumer confidence fueled this heavy retail
activity, which pushed the personal savings rate to a record low in September as
spending rates outpaced income growth. Although the U.S. economy experienced a
slowdown during the second quarter of 1999, growth rebounded in the third
quarter with gross domestic product increasing an annualized 5.7 percent.
EMPLOYMENT
The strong job market helped support the strength of the economy. During the
reporting period, the unemployment rate reached its lowest level in almost 30
years, and wages continued to climb. Wage pressures pushed the cost of labor
higher in the second quarter, as the employment cost index (ECI) recorded its
biggest gain in eight years. However, productivity gains offset rising wages in
the third quarter, bringing the ECI back to a more moderate level.
INFLATION AND INTEREST RATES
Although the Consumer Price Index continued to reflect historically low
inflation, concerns about future increases in inflation were prevalent
throughout the reporting period. The Federal Reserve Board remained active in
guarding against inflation and tempering economic growth. The Fed reversed its
three interest-rate cuts from the fall of 1998 by raising rates in June, August,
and November 1999 in an attempt to keep the economy from overheating.
U.S. GROSS DOMESTIC PRODUCT
Seasonally Adjusted Annualized Rates
Third Quarter 1997 through Third Quarter 1999
[BAR GRAPH]
<TABLE>
<CAPTION>
<S> <C>
97Q3 4.00
97Q4 3.10
98Q1 6.70
98Q2 2.10
98Q3 3.80
98Q4 5.90
99Q1 3.70
99Q2 1.90
99Q3 5.70
</TABLE>
Source: Bureau of Economic Analysis
2
<PAGE> 4
PORTFOLIO MANAGEMENT REVIEW
VAN KAMPEN RESERVE FUND
We recently spoke with representatives of the adviser of the Van Kampen Reserve
Fund about the key events and economic forces that shaped the markets during the
past six months. The representatives include Reid Hill, portfolio manager, who
has managed the Fund since February 1998 and worked in the investment industry
since 1995. He is joined by Michael Bird, portfolio manager, and Peter W. Hegel,
chief investment officer for fixed-income investments. The following discussion
reflects their views on the Fund's performance during the six-month period ended
November 30, 1999.
Q HOW WOULD YOU CHARACTERIZE THE ECONOMIC AND MARKET CONDITIONS IN WHICH THE
FUND OPERATED DURING THE PAST SIX MONTHS?
A A robust domestic economy, buoyed by high employment rates and strong
consumer activity, prompted the Federal Reserve Board to implement
interest-rate hikes in August and November in an attempt to ward off
inflation. On the heels of a June increase, these rate hikes restored the
federal funds rate to its September 1998 level of 5.50 percent.
Against this backdrop, the Dow Jones Industrial Average continued along its
volatile path, ending the period with a return to its summer highs. The equity
market easily outshone the fixed-income market, which suffered in the third
quarter of 1999 when concerns grew that Year 2000 computer problems might make
it difficult for investors to liquidate their investments in the final weeks of
the year. As fears heightened, yield spreads widened between Treasuries and
other types of bonds, such as corporate, high-yield, and mortgage-backed
securities.
In an effort to reassure investors, the Fed announced a series of programs
designed to maintain cash reserves for banks and investment companies. The
programs gave institutional investors options for procuring liquid assets,
including the ability to borrow funds from the Fed. These steps helped settle
the fixed-income market toward the end of the Fund's reporting period.
Q HOW DID YOU MANAGE THE FUND IN LIGHT OF THESE CONDITIONS?
A We continued to pursue our allocation model, in which half of the Fund's
assets would be invested in commercial paper, a third of the Fund's assets
invested in bank notes and CDs (certificates of deposit), and the
remainder invested in agency discount notes and repurchase agreements ("repos").
During the past six months, we maintained our focus on commercial paper, which
tends to provide the greatest yield advantage among the Fund's investments.
Correspondingly, we decreased the Fund's emphasis on bank notes and CDs, which
provided less value. However, market volatility prompted us to pursue the
liquidity of repos, thus creating a slight underweighting in the commercial
paper sector at the end of the reporting period.
3
<PAGE> 5
[PIE CHARTS]
<TABLE>
<CAPTION>
AS OF NOVEMBER 30, 1999 AS OF MAY 31, 1999
----------------------- ------------------
<S> <C> <C>
Commercial Paper 35.40 38.00
Repurchase Agreements 34.10 28.10
Certificate of Deposit 13.40 15.00
Agencies 14.60 14.20
Notes 2.50 4.70
</TABLE>
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
than shorter-term paper.
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 November 30, 1999, the seven-day average
yield was 4.79 percent for Class A shares, 4.05 percent for Class B shares, and
4.05 percent for Class C shares, with an effective annual yield of 4.91 percent
for Class A shares, 4.13 percent for Class B shares, and 4.13 percent for Class
C shares.
For the six-month period ended November 30, 1999, the Fund achieved a total
return at net asset value of 2.31 percent(2) for Class A shares, 1.92 percent(2)
for Class B shares, and 1.92 percent(2) for Class C shares. Including sales
charges, the Fund's total return for Class B and C shares was -2.08 percent and
0.92 percent, respectively. 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 2.38 percent over the same period. This return reflects
the performance of 30 qualifying funds, assuming reinvestment of all
distributions during the 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, 1999.
4
<PAGE> 6
Q WHAT IS YOUR OUTLOOK FOR THE MARKET OVER THE COMING MONTHS?
A Because it's impossible to predict what new developments, if any, will
result from the year 2000 problem, we find ourselves looking to the Fed
for direction. We anticipate that, once the dust settles after the turn of
the year, the Fed will gauge the strength of the economy and indications of
increasing price pressures in order to determine if another interest-rate hike
is warranted.
In conjunction with this outlook, we will maintain our pursuit of the
allocation model described earlier in this report, with an eye toward
maintaining a short portfolio duration. 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 of protection of capital and high current
income.
5
<PAGE> 7
PORTFOLIO OF INVESTMENTS
November 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Yield on
Amount Date of
(000) Description Purchase Maturity Amortized Cost
- ------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
CERTIFICATES OF DEPOSIT 11.7%
$10,000 Bank of Nova Scotia................. 5.100% 02/09/00 $ 9,999,445
20,000 Bank One Illinois................... 6.000 04/06/00 20,000,000
11,000 Bayerische Landesbank............... 5.500 12/07/99 11,000,017
25,000 Commerzbank, AG..................... 5.000 02/01/00 24,998,976
25,000 Harris Trust & Savings Bank......... 5.490 12/02/99 24,999,998
20,000 National Westminster Bank Plc....... 5.010 01/07/00 19,999,057
25,000 UBS, AG............................. 5.660 07/17/00 24,990,362
--------------
TOTAL CERTIFICATES OF DEPOSIT............................ 135,987,855
--------------
U.S. GOVERNMENT AGENCY OBLIGATIONS 12.7%
10,000 Federal Home Loan Bank.............. 5.956 12/01/99 10,000,000
8,900 Federal Home Loan Bank.............. 5.016 01/05/00 8,899,868
20,000 Federal Home Loan Bank Discount
Note................................ 5.766 02/25/00 19,731,967
10,000 Federal Home Loan Bank Discount
Note................................ 5.765 05/03/00 9,762,583
10,000 Federal Home Loan Mortgage Corp.
Discount Note....................... 5.668 01/27/00 9,912,283
10,000 Federal Home Loan Mortgage Corp.
Discount Note....................... 5.711 03/16/00 9,836,878
25,000 Federal National Mortgage
Association Discount Note........... 5.314 12/02/99 24,996,361
15,000 Federal National Mortgage
Association Discount Note........... 5.643 02/03/00 14,853,067
20,000 Federal National Mortgage
Association Discount Note........... 5.478 07/07/00 19,363,683
20,000 Student Loan Marketing Short Term
Note................................ 5.886 12/07/99 20,000,000
--------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS................. 147,356,690
--------------
COMMERCIAL PAPER 30.8%
25,000 American Express Credit Corp. ...... 5.883 02/16/00 24,693,604
25,000 American General Finance Corp. ..... 5.533 12/09/99 24,969,722
25,000 Associates Corp. of North America... 5.912 01/24/00 24,783,250
15,000 Bank of Nova Scotia................. 5.898 02/10/00 14,829,896
25,000 Chevron USA, Inc. .................. 5.380 12/08/99 24,974,236
25,000 CIT Group Holdings, Inc. ........... 5.976 01/26/00 24,772,889
25,000 Citicorp............................ 5.368 12/06/99 24,981,632
</TABLE>
See Notes to Financial Statements
6
<PAGE> 8
PORTFOLIO OF INVESTMENTS (CONTINUED)
November 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Yield on
Amount Date of
(000) Description Purchase Maturity Amortized Cost
- ------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
COMMERCIAL PAPER (CONTINUED)
$25,000 Coca Cola Co. ...................... 5.335% 12/03/99 $ 24,992,694
25,000 Ford Motor Credit Corp. ............ 5.361 12/10/99 24,967,000
20,000 General Electric Capital Corp. ..... 5.760 12/01/99 20,000,000
25,000 General Electric Capital Corp. ..... 5.967 02/28/00 24,641,528
25,000 IBM Credit Corp. ................... 5.314 12/15/99 24,949,153
25,000 John Deere Capital Corp. ........... 5.838 02/02/00 24,750,625
25,000 Norwest Financial, Inc. ............ 5.947 02/07/00 24,726,111
25,000 Prudential Funding Corp. ........... 5.923 02/04/00 24,739,097
--------------
TOTAL COMMERCIAL PAPER................................... 357,771,437
--------------
NOTES 2.1%
25,000 Lasalle National Bank............... 6.030 02/18/00 25,000,000
--------------
REPURCHASE AGREEMENTS 29.6%
BankAmerica Securities ($169,971,000 par collateralized
by U.S. Government obligations in a pooled cash account,
dated 11/30/99, to be sold on 12/01/99 at
$169,997,723)............................................ 169,971,000
Warburg Dillon Read ($175,000,000 par collateralized by
U.S. Government obligations in a pooled cash account,
dated 11/30/99, to be sold on 12/01/99 at
$175,027,563)............................................ 175,000,000
--------------
TOTAL REPURCHASE AGREEMENTS.............................. 344,971,000
--------------
TOTAL INVESTMENTS 86.9% (a)............................. 1,011,086,982
OTHER ASSETS IN EXCESS OF LIABILITIES 13.1%............. 151,980,478
--------------
NET ASSETS 100.0%....................................... $1,163,067,460
==============
</TABLE>
(a) At November 30, 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
November 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Total Investments, at amortized cost which approximates
market, including repurchase agreements of $344,971,000... $1,011,086,982
Cash........................................................ 1,636,575
Receivables:
Fund Shares Sold.......................................... 163,348,716
Interest.................................................. 4,357,894
Other....................................................... 83,409
--------------
Total Assets.......................................... 1,180,513,576
--------------
LIABILITIES:
Payables:
Fund Shares Repurchased................................... 15,957,103
Distributor and Affiliates................................ 537,379
Investment Advisory Fee................................... 290,942
Income Distributions...................................... 147,899
Accrued Expenses............................................ 299,110
Trustees' Deferred Compensation and Retirement Plans........ 213,683
--------------
Total Liabilities..................................... 17,446,116
--------------
NET ASSETS.................................................. $1,163,067,460
==============
NET ASSETS CONSIST OF:
Capital (par value of $.01 per share with an unlimited
number of shares authorized).............................. $1,163,109,350
Accumulated Undistributed Net Investment Income............. 22,507
Accumulated Net Realized Loss............................... (64,397)
--------------
NET ASSETS.................................................. $1,163,067,460
==============
MAXIMUM OFFERING PRICE PER SHARE:
Class A Shares:
Net Asset Value, Offering Price and Redemption Price per
share (Based on net assets of $922,400,431 and
922,423,989 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 $209,620,931 and 209,625,666 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 $31,046,098 and 31,064,083 shares of
beneficial interest issued and outstanding)............. $ 1.00
==============
</TABLE>
See Notes to Financial Statements
8
<PAGE> 10
STATEMENT OF OPERATIONS
For the Six Months Ended November 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest.................................................... $26,802,239
-----------
EXPENSES:
Investment Advisory Fee..................................... 1,980,172
Distribution (12b-1) and Service Fees (Attributed to Classes
A, B and C of $561,034, $892,488 and $206,145,
respectively)............................................. 1,659,667
Shareholder Services........................................ 871,112
Custody..................................................... 77,493
Trustees' Fees and Related Expenses......................... 27,558
Legal....................................................... 23,920
Other....................................................... 288,026
-----------
Total Expenses.......................................... 4,927,948
Less Credits Earned on Cash Balances.................... 40,693
-----------
Net Expenses............................................ 4,887,255
-----------
NET INVESTMENT INCOME....................................... $21,914,984
===========
NET REALIZED LOSS........................................... $ (2,333)
===========
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $21,912,651
===========
</TABLE>
See Notes to Financial Statements
9
<PAGE> 11
STATEMENT OF CHANGES IN NET ASSETS
For the Six Months Ended November 30, 1999 and
the Year Ended May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended Year Ended
November 30, 1999 May 31, 1999
- -----------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income........................ $ 21,914,984 $ 34,857,720
Net Realized Gain/Loss....................... (2,333) 31,626
----------- ----------------
Change in Net Assets from Operations......... 21,912,651 34,889,346
----------- ----------------
Distributions from Net Investment Income:
Class A Shares............................. (17,144,340) (28,300,866)
Class B Shares............................. (3,876,628) (5,631,517)
Class C Shares............................. (914,680) (934,371)
----------- ----------------
Total Distributions.......................... (21,935,648) (34,866,754)
----------- ----------------
NET CHANGE IN NET ASSETS FROM INVESTMENT
ACTIVITIES................................. (22,997) 22,592
----------- ----------------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold.................... 14,008,079,376 22,546,743,249
Net Asset Value of Shares Issued Through
Dividend Reinvestment...................... 20,769,555 34,866,754
Cost of Shares Repurchased................... (13,552,074,714) (22,668,497,361)
----------- ----------------
Net Change in Net Assets from Capital
Transactions............................... 476,774,217 (86,887,358)
----------- ----------------
TOTAL INCREASE/DECREASE IN NET ASSETS........ 476,751,220 (86,864,766)
NET ASSETS:
Beginning of the Period...................... 686,316,240 773,181,006
----------- ----------------
End of the Period (Including accumulated
undistributed net investment income of
$22,507 and $43,171,
respectively).............................. $1,163,067,460 $ 686,316,240
============== ================
</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. (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended May 31,
Six Months Ended -------------------------------------
Class A Shares November 30, 1999 1999 1998 1997 1996
- ---------------------------------------------------------------------------------------
<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........ .0228 .0449 .0467 .0440 .0465
Less Distributions from Net
Investment Income.......... (.0228) (.0449) (.0467) (.0440) (.0465)
------- ------- ------- ------- -------
New Asset Value, End of the
Period..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Total Return................. 2.31%* 4.55% 4.78% 4.52% 4.75%
Net Assets at End of the
Period (In millions)....... $ 922.4 $ 529.6 $ 634.1 $ 451.3 $ 440.3
Ratio of Expenses to Average
Net Assets** (a)........... 0.78% 0.84% 1.02% 1.02% 1.07%
Ratio of Net Investment
Income to Average Net
Assets**................... 4.43% 4.38% 4.60% 4.38% 4.62%
</TABLE>
* Non-Annualized
** For 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) 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. (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended May 31,
Six Months Ended -------------------------------------
Class B Shares November 30, 1999 1999 1998 1997 1996
- ---------------------------------------------------------------------------------------
<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........ .0191 .0374 .0391 .0363 .0388
Less Distributions from Net
Investment Income.......... (.0191) (.0374) (.0391) (.0363) (.0388)
------- ------- ------- ------- -------
New Asset Value, End of the
Period..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Total Return (a)............. 1.92%* 3.78% 3.99% 3.71% 3.95%
Net Assets at End of the
Period (In millions)....... $ 209.6 $ 129.8 $ 123.0 $ 103.0 $ 81.5
Ratio of Expenses to Average
Net Assets** (b)........... 1.56% 1.63% 1.79% 1.77% 1.86%
Ratio of Net Investment
Income to Average Net
Assets**................... 3.90% 3.71% 3.91% 3.70% 3.75%
</TABLE>
* Non-Annualized
** For 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. (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended May 31,
Six Months Ended -------------------------------------
Class C Shares November 30, 1999 1999 1998 1997 1996
- ---------------------------------------------------------------------------------------
<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........ .0191 .0373 .0392 .0362 .0387
Less Distributions from Net
Investment Income.......... (.0191) (.0373) (.0392) (.0362) (.0387)
------- ------- ------- ------- -------
Net Asset Value, End of the
Period..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Total Return (a)............. 1.92%* 3.77% 3.99% 3.72% 3.94%
Net Assets at End of the
Period (In millions)....... $ 31.1 $ 26.9 $ 16.1 $ 8.4 $ 9.7
Ratio of Expenses to Average
Net Assets**(b)............ 1.55% 1.63% 1.78% 1.78% 1.87%
Ratio of Net Investment
Income to Average Net
Assets**................... 3.92% 3.73% 3.91% 3.64% 3.81%
</TABLE>
* Non-Annualized
** For 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
November 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
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)
November 30, 1999 (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, 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 six months ended November 30, 1999, the Fund's
custody fee was reduced by $40,693 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 six months ended November 30, 1999, the Fund recognized expenses of
approximately $23,900 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.
15
<PAGE> 17
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
November 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
For the six months ended November 30, 1999, the Fund recognized expenses of
approximately $89,400 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., an affiliate of the Adviser, serves as
the shareholder servicing agent for the Fund. For the six months ended November
30, 1999, the Fund recognized expenses of approximately $644,400. 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 November 30, 1999, capital aggregated $922,410,406, $209,635,106 and
$31,063,838 for Classes A, B and C, respectively. For the six months ended
November 30, 1999, transactions were as follows:
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------------------------------
<S> <C> <C>
Sales:
Class A............................. 13,011,633,377 $ 13,011,633,378
Class B............................. 729,964,283 729,964,282
Class C............................. 266,481,716 266,481,716
--------------- ----------------
Total Sales........................... 14,008,079,376 $ 14,008,079,376
=============== ================
Dividend Reinvestment:
Class A............................. 16,300,797 $ 16,300,797
Class B............................. 3,627,778 3,627,778
Class C............................. 840,980 840,980
--------------- ----------------
Total Dividend Reinvestment........... 20,769,555 $ 20,769,555
=============== ================
Repurchases:
Class A............................. (12,635,137,184) $(12,635,137,184)
Class B............................. (653,755,338) (653,755,338)
Class C............................. (263,182,192) (263,182,192)
--------------- ----------------
Total Repurchases..................... (13,552,074,714) $(13,552,074,714)
=============== ================
</TABLE>
16
<PAGE> 18
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
November 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
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>
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 purchased on or after June 1, 1996, and
any dividend reinvestment plan Class B shares received thereon, automatically
convert to Class A shares eight years after the end of the calendar month in
which the shares were purchased. Class B shares purchased before June 1, 1996,
and any dividend reinvestment plan Class B shares received thereon,
automatically convert to Class A shares six years after the end of the calendar
month in which the shares were purchased. For the six months ended November 30,
1999, no Class B shares converted to Class A shares. Class C shares purchased
before January 1, 1997, and any dividend reinvestment plan Class C shares
received thereon, automatically convert to Class A shares ten years after the
end of the calendar month in which the shares were purchased.
17
<PAGE> 19
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
November 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Class C shares purchased on or after January 1, 1997 do not possess a conversion
feature. For the six months ended November 30, 1999, no Class C shares converted
to Class A shares.
<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 six months ended November 30, 1999, Van Kampen, as Distributor for
the Fund, received commissions on redeemed shares which were subject to a CDSC
of approximately $606,300. 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, 1999, are payments
retained by Van Kampen of approximately $882,800.
18
<PAGE> 20
VAN KAMPEN FUNDS
GROWTH
Aggressive Growth
American Value*
Emerging Growth
Enterprise
Equity Growth
Focus Equity
Growth
Pace
Small Cap Value
Technology
GROWTH AND INCOME
Comstock
Equity Income
Growth and Income
Harbor
Real Estate Securities
Utility
Value
GLOBAL/INTERNATIONAL
Asian Growth
Emerging Markets
European Equity
Global Equity
Global Equity Allocation
Global Fixed Income
Global Franchise
Global Government Securities
Global Managed Assets
International Magnum
Latin American
Short-Term Global Income*
Strategic Income
Worldwide High Income
INCOME
Corporate Bond
Government Securities
High Income Corporate Bond
High Yield
High Yield & Total Return
Limited Maturity Government
U.S. Government
U.S. Government Trust for Income
CAPITAL PRESERVATION
Reserve
Tax Free Money
SENIOR LOAN
Prime Rate Income Trust
Senior Floating Rate
TAX FREE
California Insured Tax Free
Florida Insured Tax Free Income
High Yield Municipal
Insured Tax Free Income
Intermediate Term Municipal Income
Municipal Income
New York Tax Free Income
Pennsylvania Tax Free Income
Tax Free High Income
To find out more about any of these
funds, ask your financial advisor for
a prospectus, which contains more
complete information, including sales
charges, risks, and ongoing expenses.
Please read it carefully before you
invest or send money.
To view a current Van Kampen fund
prospectus or to receive additional
fund information, choose from one of
the following:
- - visit our Web site at WWW.VANKAMPEN.COM--to view a prospectus, select Download
Prospectus
- - call us at 1-800-341-2911 weekdays from 7:00 a.m. to 7:00 p.m. Central time.
Telecommunications Device for the Deaf users, call 1-800-421-2833.
- - e-mail us by visiting WWW.VANKAMPEN.COM and selecting Contact Us
* Closed to new investors
19
<PAGE> 21
VAN KAMPEN RESERVE FUND
BOARD OF TRUSTEES
J. MILES BRANAGAN
JERRY D. CHOATE
LINDA HUTTON HEAGY
R. CRAIG KENNEDY
MITCHELL M. MERIN*
JACK E. NELSON
RICHARD F. POWERS, III*
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
STEPHEN L. BOYD*
PETER W. HEGEL*
MICHAEL H. SANTO*
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 218256
Kansas City, Missouri 64121-8256
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., 2000 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 UPDATE
As we enter the new century, it's "business as usual" for Van Kampen. Thank
you for the confidence you showed in us during the changeover on January 1,
2000, and for entrusting us with your investment portfolio. We look forward
to continuing to serve your investment needs.
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000005114
<NAME> VK RESERVE FUND
<SERIES>
<NUMBER> 11
<NAME> RESERVE FUND A
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-2000
<PERIOD-START> JUN-01-1999
<PERIOD-END> NOV-30-1999
<INVESTMENTS-AT-COST> 1,011,086,982<F1>
<INVESTMENTS-AT-VALUE> 1,011,086,982<F1>
<RECEIVABLES> 167,706,610<F1>
<ASSETS-OTHER> 83,409<F1>
<OTHER-ITEMS-ASSETS> 1,636,575<F1>
<TOTAL-ASSETS> 1,180,513,576<F1>
<PAYABLE-FOR-SECURITIES> 0<F1>
<SENIOR-LONG-TERM-DEBT> 0<F1>
<OTHER-ITEMS-LIABILITIES> 17,446,116<F1>
<TOTAL-LIABILITIES> 17,446,116<F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 922,410,406
<SHARES-COMMON-STOCK> 922,423,989
<SHARES-COMMON-PRIOR> 529,626,999
<ACCUMULATED-NII-CURRENT> 22,507<F1>
<OVERDISTRIBUTION-NII> 0<F1>
<ACCUMULATED-NET-GAINS> (64,397)<F1>
<OVERDISTRIBUTION-GAINS> 0<F1>
<ACCUM-APPREC-OR-DEPREC> 0<F1>
<NET-ASSETS> 922,400,431
<DIVIDEND-INCOME> 0<F1>
<INTEREST-INCOME> 26,802,239<F1>
<OTHER-INCOME> 0<F1>
<EXPENSES-NET> (4,887,255)<F1>
<NET-INVESTMENT-INCOME> 21,914,984<F1>
<REALIZED-GAINS-CURRENT> (2,333)<F1>
<APPREC-INCREASE-CURRENT> 0<F1>
<NET-CHANGE-FROM-OPS> 21,912,651<F1>
<EQUALIZATION> 0<F1>
<DISTRIBUTIONS-OF-INCOME> (17,144,340)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 13,011,633,377
<NUMBER-OF-SHARES-REDEEMED> (12,635,137,184)
<SHARES-REINVESTED> 16,300,797
<NET-CHANGE-IN-ASSETS> 392,790,916
<ACCUMULATED-NII-PRIOR> 43,171<F1>
<ACCUMULATED-GAINS-PRIOR> (62,064)<F1>
<OVERDISTRIB-NII-PRIOR> 0<F1>
<OVERDIST-NET-GAINS-PRIOR> 0<F1>
<GROSS-ADVISORY-FEES> 1,980,172<F1>
<INTEREST-EXPENSE> 0<F1>
<GROSS-EXPENSE> 4,927,948<F1>
<AVERAGE-NET-ASSETS> 770,700,471
<PER-SHARE-NAV-BEGIN> 1.0000
<PER-SHARE-NII> 0.0228
<PER-SHARE-GAIN-APPREC> 0.0000
<PER-SHARE-DIVIDEND> (0.0228)
<PER-SHARE-DISTRIBUTIONS> 0.0000
<RETURNS-OF-CAPITAL> 0.0000
<PER-SHARE-NAV-END> 1.0000
<EXPENSE-RATIO> 0.78
<FN>
<F1>This item relates to the Fund on a composite basis and not on a class basis
</FN>
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000005114
<NAME> VK RESERVE FUND
<SERIES>
<NUMBER> 12
<NAME> RESERVE FUND B
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-2000
<PERIOD-START> JUN-01-1999
<PERIOD-END> NOV-30-1999
<INVESTMENTS-AT-COST> 1,011,086,982<F1>
<INVESTMENTS-AT-VALUE> 1,011,086,982<F1>
<RECEIVABLES> 167,706,610<F1>
<ASSETS-OTHER> 83,409<F1>
<OTHER-ITEMS-ASSETS> 1,636,575<F1>
<TOTAL-ASSETS> 1,180,513,576<F1>
<PAYABLE-FOR-SECURITIES> 0<F1>
<SENIOR-LONG-TERM-DEBT> 0<F1>
<OTHER-ITEMS-LIABILITIES> 17,446,116<F1>
<TOTAL-LIABILITIES> 17,446,116<F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 209,635,106
<SHARES-COMMON-STOCK> 209,625,666
<SHARES-COMMON-PRIOR> 129,788,943
<ACCUMULATED-NII-CURRENT> 22,507<F1>
<OVERDISTRIBUTION-NII> 0<F1>
<ACCUMULATED-NET-GAINS> (64,397)<F1>
<OVERDISTRIBUTION-GAINS> 0<F1>
<ACCUM-APPREC-OR-DEPREC> 0<F1>
<NET-ASSETS> 209,620,931
<DIVIDEND-INCOME> 0<F1>
<INTEREST-INCOME> 26,802,239<F1>
<OTHER-INCOME> 0<F1>
<EXPENSES-NET> (4,887,255)<F1>
<NET-INVESTMENT-INCOME> 21,914,984<F1>
<REALIZED-GAINS-CURRENT> (2,333)<F1>
<APPREC-INCREASE-CURRENT> 0<F1>
<NET-CHANGE-FROM-OPS> 21,912,651<F1>
<EQUALIZATION> 0<F1>
<DISTRIBUTIONS-OF-INCOME> (3,876,628)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 729,964,283
<NUMBER-OF-SHARES-REDEEMED> (653,755,338)
<SHARES-REINVESTED> 3,627,778
<NET-CHANGE-IN-ASSETS> 79,833,447
<ACCUMULATED-NII-PRIOR> 43,171<F1>
<ACCUMULATED-GAINS-PRIOR> (62,064)<F1>
<OVERDISTRIB-NII-PRIOR> 0<F1>
<OVERDIST-NET-GAINS-PRIOR> 0<F1>
<GROSS-ADVISORY-FEES> 1,980,172<F1>
<INTEREST-EXPENSE> 0<F1>
<GROSS-EXPENSE> 4,927,948<F1>
<AVERAGE-NET-ASSETS> 199,238,406
<PER-SHARE-NAV-BEGIN> 1.0000
<PER-SHARE-NII> 0.0191
<PER-SHARE-GAIN-APPREC> 0.0000
<PER-SHARE-DIVIDEND> (0.0191)
<PER-SHARE-DISTRIBUTIONS> 0.0000
<RETURNS-OF-CAPITAL> 0.0000
<PER-SHARE-NAV-END> 1.0000
<EXPENSE-RATIO> 1.56
<FN>
<F1>This item relates to the Fund on a composite basis and not on a class basis
</FN>
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000005114
<NAME> VK RESERVE FUND
<SERIES>
<NUMBER> 13
<NAME> RESERVE FUND C
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-2000
<PERIOD-START> JUN-01-1999
<PERIOD-END> NOV-30-1999
<INVESTMENTS-AT-COST> 1,011,086,982<F1>
<INVESTMENTS-AT-VALUE> 1,011,086,982<F1>
<RECEIVABLES> 167,706,610<F1>
<ASSETS-OTHER> 83,409<F1>
<OTHER-ITEMS-ASSETS> 1,636,575<F1>
<TOTAL-ASSETS> 1,180,513,576<F1>
<PAYABLE-FOR-SECURITIES> 0<F1>
<SENIOR-LONG-TERM-DEBT> 0<F1>
<OTHER-ITEMS-LIABILITIES> 17,446,116<F1>
<TOTAL-LIABILITIES> 17,446,116<F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 31,063,838
<SHARES-COMMON-STOCK> 31,064,083
<SHARES-COMMON-PRIOR> 26,923,579
<ACCUMULATED-NII-CURRENT> 22,507<F1>
<OVERDISTRIBUTION-NII> 0<F1>
<ACCUMULATED-NET-GAINS> (64,397)<F1>
<OVERDISTRIBUTION-GAINS> 0<F1>
<ACCUM-APPREC-OR-DEPREC> 0<F1>
<NET-ASSETS> 31,046,098
<DIVIDEND-INCOME> 0<F1>
<INTEREST-INCOME> 26,802,239<F1>
<OTHER-INCOME> 0<F1>
<EXPENSES-NET> (4,887,255)<F1>
<NET-INVESTMENT-INCOME> 21,914,984<F1>
<REALIZED-GAINS-CURRENT> (2,333)<F1>
<APPREC-INCREASE-CURRENT> 0<F1>
<NET-CHANGE-FROM-OPS> 21,912,651<F1>
<EQUALIZATION> 0<F1>
<DISTRIBUTIONS-OF-INCOME> (914,680)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 266,481,716
<NUMBER-OF-SHARES-REDEEMED> (263,182,192)
<SHARES-REINVESTED> 840,980
<NET-CHANGE-IN-ASSETS> 4,126,857
<ACCUMULATED-NII-PRIOR> 43,171<F1>
<ACCUMULATED-GAINS-PRIOR> (62,064)<F1>
<OVERDISTRIB-NII-PRIOR> 0<F1>
<OVERDIST-NET-GAINS-PRIOR> 0<F1>
<GROSS-ADVISORY-FEES> 1,980,172<F1>
<INTEREST-EXPENSE> 0<F1>
<GROSS-EXPENSE> 4,927,948<F1>
<AVERAGE-NET-ASSETS> 46,096,706
<PER-SHARE-NAV-BEGIN> 1.0000
<PER-SHARE-NII> 0.0191
<PER-SHARE-GAIN-APPREC> 0.0000
<PER-SHARE-DIVIDEND> (0.0191)
<PER-SHARE-DISTRIBUTIONS> 0.0000
<RETURNS-OF-CAPITAL> 0.0000
<PER-SHARE-NAV-END> 1.0000
<EXPENSE-RATIO> 1.55
<FN>
<F1>This item relates to the Fund on a composite basis and not on a class basis
</FN>
</TABLE>
