Page: 1
<TABLE>
<CAPTION>
Table of Contents
<S> <C>
Letter to Shareholders ................ 1
Portfolio of Investments ............. 4
Statement of Assets and Liabilities ... 6
Statement of Operations .............. 7
Statement of Changes in Net Assets .... 8
Financial Highlights ................. 9
Notes to Financial Statements ......... 11
Independent Auditors' Report ......... 15
</TABLE>
Page: 2
Letter to Shareholders
August 3, 1995
Dear Shareholder:
During the fiscal year ended June 30, 1995, the Van Kampen Merritt Money
Market Fund continued to benefit from relatively high short-term interest rates
and low inflation. As a result, the Fund was able to provide shareholders with
attractive returns, and a high degree of safety and liquidity.
[PHOTO]
Dennis J. McDonnell and Don G. Powell
Economic Overview
Due in large part to the Federal Reserve
Board's efforts to tighten monetary supply in 1994, the economy has slowed
significantly this year. Evidence of this guided slowdown was reflected in the
gross domestic product for the second quarter, which grew at an annual rate of
0.5 percent, substantially slower than its first quarter rate of 2.7 percent and
fourth quarter 1994 rate of 5.1 percent. While other key economic data,
including unemployment rates and housing starts, have shown mixed signs during
recent weeks, the general trend for the first half of the year suggested a "soft
landing" scenario. Subsequently, concern over inflation has subsided, as its
annualized rate has run at a modest pace of 3.2 percent year-to-date.
In response to the slower economy, the Fed cut short-term interest rates by
0.25 percent on July 6, 1995, officially reversing a trend of sharply higher
interest rates during the past year. Investors had anticipated such a move for
months, driving down the yields on money market instruments while boosting stock
and bond prices. Still, short-term interest rates are historically high in
relation to inflation.
Performance Summary
On June 30, 1995, the Fund's Class A shares generated a seven-day average
yield of 5.13 percent<F1> with an effective annual yield of 5.26 percent and a
one-year total return of
4.50 percent(2). In comparison, the average performance for money market funds,
as calculated by Lipper Analytical Services, Inc., was 4.91 percent for the
same period.
In keeping with the Fund's disciplined investment approach, we continued to
focus on only the highest quality securities including short-term obligations of
the U.S. government, municipalities and top-tier corporations. The Fund's
portfolio composition for the period is further illustrated by the chart on the
following page.
Outlook
We believe that the Fed will move cautiously before lowering interest rates
again, waiting for further signs that the economy has settled into a slow growth
pattern. We anticipate that the
(Continued on page two)
1
Portfolio Holdings by Investment Type as of June 30, 1995
Repurchase Agreement 15.7%
Variable Rate Demand Obligations 19.1%
Notes 5.9%
Agencies 18.3%
Bankers Acceptance 2.9%
Commercial Paper 38.1%
[THIS IS A PIE CHART]
economy will grow at an annual rate between 2 and 3 percent in the second half
of the year, and that inflation will run at an annualized rate between 3.3 and
3.5 percent. Based upon this generally slow growth and low inflation outlook, we
believe that market forces will exert a downward pressure on interest rates. As
a result, the Fund will continue to emphasize securities with longer maturities
in order to lock in higher yields.
In addition, the Board of Trustees of the Fund has approved the merger of the
Fund into the Van Kampen American Capital Reserve Fund, pending shareholder
approval. By now all shareholders should have received a proxy seeking their
vote on this proposal and a special shareholder meeting has been scheduled for
September 15, 1995.
Corporate News
Along with your Fund's shareholder report, we are pleased to introduce a new
shareholder publication called Your Portfolio. The purpose of this publication
is to provide you with additional information about your mutual fund investment,
as well as offer helpful insights regarding long-term investment strategies and
trends in the marketplace. The publication will be mailed twice a year with your
June and December shareholder reports. This premier issue focuses on our various
shareholder services and privileges designed to make mutual fund investing
easier for you.
We appreciate your continued confidence in your investment with Van Kampen
American Capital, and we look forward to communicating with you again regarding
the performance of your Fund.
Sincerely,
Don G. Powell Dennis J. McDonnell
Chairman President
Van Kampen American Capital Van Kampen American Capital
Investment Advisory Corp. Investment Advisory Corp.
2 Please see footnotes on page three
Van Kampen Merritt Money Market Fund
(Quotron Symbol A shares VANXX, B shares VANBX)
There is no assurance that the Fund will be able to maintain a stable net asset
value of $1.00 per share. Shares of the Fund are neither insured nor guaranteed
by the U.S. Government
Past performance does not guarantee future results. Investment return and net
asset value will fluctuate with market conditions. Fund shares, when redeemed,
may be worth more or less than their original cost.
This report is intended for shareholders of the Fund and may not be used as
sales literature with prospective investors unless it is preceded or accompanied
by the Fund's current prospectus which gives more complete information about
charges and expenses, investment objectives and operating policies. Prospective
investors should read the prospectus carefully before investing or sending
money.
[FN]
<F1>Had certain expenses of the Fund not been assumed by the Adviser, the
Fund's seven-day yield would have been 4.63% and the total return would have
been lower.
<F2>One-year total return assumes reinvestment of all distributions for the
period ended June 30, 1995.
3
<TABLE>
Portfolio of Investments
June 30, 1995
<CAPTION>
Par Discount Yield
Amount Maturity on Date Amortized
(000) Security Description Date of Purchase Cost
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Agency 18.8%
$ 858 Small Business Administration ..................... 07/01/95 7.000% $ 857,994
1,000 Federal Home Loan Mortgage Corp. .................. 08/07/95 5.910 993,926
2,000 Federal Home Loan Mortgage Corp. .................. 10/23/95 5.920 1,962,507
480 Federal Home Loan Bank ............................ 01/05/96 5.920 465,160
1,000 Federal Farm Credit Bank .......................... 02/23/96 6.050 960,171
1,000 Federal Farm Credit Bank .......................... 04/01/96 6.500 999,764
----------
Total Agency ..................................................... 6,239,522
----------
Bankers Acceptances 3.0%
1,000 NationsBank Corp. ............................. 07/10/95 6.050 998,489
----------
Commercial Paper 38.9%
1,000 Norwest Financial Inc. ......................... 07/03/95 6.185 1,000,000
1,000 J. P. Morgan & Co. Inc. ........................ 07/05/95 6.030 999,330
1,000 Michigan Underground Storage Tank
Financial Assurance Authority ................. 07/10/95 6.120 998,470
1,000 IBM Credit Corp. ............................... 07/12/95 6.040 998,154
1,000 American General Finance Corp. ................ 07/17/95 6.000 997,333
1,000 Ford Motor Credit Corp. ......................... 07/21/95 5.989 1,000,000
1,000 Merrill Lynch & Co. Inc. ........................ 07/24/95 6.030 996,148
1,000 Associates Corp. ............................... 07/25/95 5.978 1,000,000
1,000 CIT Group Holdings Inc. ......................... 07/27/95 5.984 1,000,000
1,000 Credit Suisse First Boston Inc. ................. 08/02/95 5.970 994,693
1,000 John Deere Capital Corp. ........................ 08/10/95 5.940 993,400
1,000 Philip Morris Cos. Inc. ......................... 08/11/95 5.910 993,269
1,000 Heller Financial Inc. ........................... 08/17/95 6.030 992,128
----------
Total Commercial Paper .......................................... 12,962,925
----------
Notes 6.0%
1,000 Alameda County, CA Pension Obligation
Taxable Series A .............................. 12/01/95 6.400 999,571
1,000 General Electric Capital Corp. ................ 03/01/96 6.950 1,004,913
----------
Total Notes ...................................................... 2,004,484
----------
</TABLE>
4 See Notes to Financial Statements
<TABLE>
Portfolio of Investments (Continued)
June 30, 1995
<CAPTION>
Par Discount Yield
Amount Maturity on Date Amortized
(000) Security Description Date of Purchase Cost
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Variable Rate Demand Obligations 19.5%
$ 1,400 Catholic Healthcare West (Gtd: Toronto
Dominion Bank) ........................................ 07/05/95 6.000% $ 1,400,000
800 Florida Housing Finance Agency
(L.O.C. Credit Suisse) ................................. 07/05/95 6.100 800,000
900 Health Insurance Plan Greater New York
(L.O.C. Morgan Gty) ................................... 07/05/95 6.170 900,000
500 Illinois Student Assistance Commission
(L.O.C. Sumitomo Bank) ................................. 07/05/95 6.170 500,000
700 Mississippi Business Finance Corp. .................... 07/05/95 6.100 700,000
1,000 Texas State Veterans Housing .......................... 07/05/95 6.100 1,000,000
1,200 Virginia State Housing Development Authority ........... 07/05/95 6.170 1,200,000
----------
Total Variable Rate Demand Obligations ............................................... 6,500,000
----------
Repurchase Agreement 16.1%
UBS Securities, U.S. T-Note, $5,410,000 par, 4.625% coupon, due 02/29/96,
dated 06/30/95, to be sold on 07/03/95 at $5,343,715 ................................ 5,341,000
----------
Total Investments <F1> - 102.3% ...................................................... 34,046,420
Liabilities in Excess of Other Assets (2.3%) ......................................... (761,769)
----------
Net Assets - 100.0% ................................................................. $ 33,284,651
----------
<FN>
<F1>At June 30, 1995, cost is identical for both book and federal income tax purposes.
</TABLE>
5 See Notes to Financial Statements
<TABLE>
Statement of Assets and Liabilities
June 30, 1995
- ------------------------------------------------------------------------------------
<CAPTION>
<S> <C>
Assets:
Investments, at Amortized Cost which Approximates Market (Note 1) ... $ 34,046,420
Cash ............................................................... 75,851
Receivables:
Fund Shares Sold .................................................. 160,350
Interest .......................................................... 123,765
Other .............................................................. 4,819
----------
Total Assets ........................................................ 34,411,205
----------
Liabilities:
Payables:
Fund Shares Repurchased .......................................... 965,771
Income Distributions ............................................. 15,409
Investment Advisory Fee (Note 2) ................................. 1,120
Accrued Expenses .................................................... 144,254
----------
Total Liabilities ................................................... 1,126,554
----------
Net Assets .......................................................... $ 33,284,651
----------
Net Assets Consist of:
Paid in Surplus:
Class A Shares ...................................................... $ 26,167,807
Class B Shares ...................................................... 7,186,882
Accumulated Net Realized Loss on Investments ........................ (70,038)
----------
Net Assets ........................................................ $ 33,284,651
----------
Maximum Offering Price Per Share:
Class A Shares:
Net asset value per share (Based on net assets of $26,097,562 and
26,167,807 shares of beneficial interest issued and outstanding) .... $ 1.00
----------
Class B Shares:
Net asset value per share (Based on net assets of $7,187,089 and
7,186,882 shares of beneficial interest issued and outstanding) ..... $ 1.00
----------
</TABLE>
6 See Notes to Financial Statements
<TABLE>
Statement of Operations
For the Year Ended June 30, 1995
- --------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C>
Investment Income:
Interest ......................................................................... $ 1,826,269
----------
Expenses:
Investment Advisory Fee (Note 2) ................................................ 164,818
Distribution (12b-1) and Service Fees (Allocated to Classes A and B of $66,474 and
$59,260, respectively) (Note 4) .................................................. 125,734
Shareholder Services ............................................................ 99,679
Printing ........................................................................ 41,590
Legal (Note 2) .................................................................. 40,753
Audit ........................................................................... 29,051
Trustees Fees and Expenses (Note 2) .............................................. 22,779
Other ........................................................................... 40,272
----------
Total Expenses ................................................................... 564,676
Less Fees Waived ................................................................ 160,355
----------
Net Expenses ..................................................................... 404,321
----------
Net Investment Income ............................................................ $ 1,421,948
----------
Realized Gain/Loss on Investments:
Proceeds from Sales .............................................................. $ 27,715,330
Cost of Securities Sold .......................................................... (27,730,793)
----------
Net Realized Loss on Investments ................................................ $ (15,463)
----------
Net Increase in Net Assets from Operations ...................................... $ 1,406,485
----------
</TABLE>
7 See Notes to Financial Statements
<TABLE>
Statement of Changes in Net Assets
For the Years Ended June 30, 1995 and 1994
- -------------------------------------------------------------------------------------------------
<CAPTION>
Year Ended Year Ended
June 30, 1995 June 30, 1994
<S>
From Investment Activities: <C> <C>
Operations:
Net Investment Income ......................................... $ 1,421,948 $ 499,064
Net Realized Loss on Investments .............................. (15,463) (26,427)
-------------- ------------
Change in Net Assets from Operations ......................... 1,406,485 472,637
-------------- ------------
Distributions from Net Investment Income:
Class A Shares ............................................... (1,190,991) (499,064)
Class B Shares ............................................... (230,957) -0-
-------------- ------------
(1,421,948) (499,064)
-------------- ------------
Net Change in Net Assets from Investment Activities .......... (15,463) (26,427)
-------------- ------------
From Capital Transactions (Note 3):
Proceeds from Shares Sold:
Class A Shares ............................................... 84,390,774 79,908,069
Class B Shares ............................................... 21,212,451 -0-
-------------- ------------
105,603,225 79,908,069
-------------- ------------
Net Asset Value of Shares Issued Through Dividend Reinvestment:
Class A Shares ............................................... 978,827 445,332
Class B Shares ............................................... 160,305 -0-
-------------- ------------
1,139,132 445,332
-------------- ------------
Cost of Shares Repurchased:
Class A Shares ............................................... (86,803,084) (74,519,684)
Class B Shares ............................................... (14,185,874) -0-
-------------- ------------
(100,988,958) (74,519,684)
-------------- ------------
Net Change in Net Assets from Capital Transactions ........... 5,753,399 5,833,717
-------------- ------------
Total Increase in Net Assets ................................. 5,737,936 5,807,290
-------------- ------------
Net Assets:
Beginning of the Period ...................................... 27,546,715 21,739,425
-------------- ------------
End of the Period ........................................... $ 33,284,651 $ 27,546,715
-------------- ------------
</TABLE>
8 See Notes to Financial Statements
<TABLE>
Financial Highlights
The following schedule presents financial highlights for one share
of the Fund outstanding throughout the periods indicated.
Year Ended June 30
<CAPTION>
Class A Shares 1995 1994 1993 1992 1991
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------
Net Investment Income ........................... .044 .025 .023 .041 .065
Less Distributions from Net Investment Income ... .044 .025 .023 .041 .065
------ ------ ------ ------ ------
Net Asset Value, End of Period ................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------
Total Return (Non-Annualized)* ................. 4.50% 2.50% 2.31% 4.21% 6.72%
Net Assets at End of Period
(In millions) ................................... $ 26.1 $ 27.5 $ 21.7 $ 24.9 $ 35.0
Ratio of Expenses to Average
Net Assets* .................................... 1.08% 1.13% 1.16% 1.14% .99%
Ratio of Net Investment Income
to Average Net Assets* .......................... 4.40% 2.44% 2.31% 4.21% 6.57%
*If certain expenses had not been assumed by the Adviser, total return would
have been lower and the ratios would have been as follows:
Ratio of Expenses to Average
Net Assets ...................................... 1.56% 1.54% 1.31% 1.55% 1.39%
Ratio of Net Investment Income
to Average Net Assets ........................... 3.91% 2.03% 2.16% 3.80% 6.17%
</TABLE>
9 See Notes to Financial Statements
<TABLE>
Financial Highlights (Continued)
The following schedule presents financial highlights for one share
of the Fund outstanding throughout the period indicated.
<CAPTION>
July 11, 1994
(Commencement
of Distribution) to
Class B Shares June 30, 1995
- -----------------------------------------------------------------------------------------------------
<S> <C>
Net Asset Value, Beginning of Period ............................................ $ 1.00
-----------------
Net Investment Income .......................................................... .036
Less Distributions from Net Investment Income .................................. .036
-----------------
Net Asset Value, End of Period ................................................. $ 1.00
-----------------
Total Return (Non-Annualized)* .................................................. 3.62%
Net Assets at End of Period (In Millions) ...................................... $ 7.2
Ratio of Expenses to Average
Net Assets* .................................................................... 1.89%
Ratio of Net Investment Income
to Average Net Assets* ......................................................... 3.90%
*If certain expenses had not been assumed by the Adviser, total return would have
been lower and the ratios would have been as follows:
Ratio of Expenses to Average
Net Assets ..................................................................... 2.38%
Ratio of Net Investment Income
to Average Net Assets ........................................................... 3.40%
</TABLE>
10 See Notes to Financial Statements
Notes to Financial Statements
June 30, 1995
1. Significant Accounting Policies
Van Kampen Merritt Money Market Fund (the "Fund") is a separate series of Van
Kampen Merritt Money Market Trust (the "Trust"). The Fund is an open-end
diversified management investment company registered under the Investment
Company Act of 1940, as amended. The distribution of the Fund's second class
of shares, Class B shares, commenced on July 11, 1994.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements.
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 on a straight-line basis
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.
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 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 June 30, 1995, the Fund had an accumulated capital loss carryforward
for tax purposes of $70,038. Of this amount, $26,110, $2,038, $11,411 and
$30,479 will expire on June 30, 1998, 1999, 2000 and 2003, respectively. Net
realized gains or losses differ for financial statement and tax reporting
purposes primarily because of the deferral of post October 31 losses which are
not recognized for tax purposes until the first day of the following fiscal
year.
D. Distribution of Income and Gains-The Fund declares dividends from net
investment income daily 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.
11
Notes to Financial Statements (Continued)
June 30, 1995
2. Investment Advisory Fees and Other Transactions with Affiliates
Under the terms of the Fund's Investment Advisory Agreement, Van Kampen American
Capital Investment Advisory Corp. (the "Adviser") will provide investment advice
and facilities to the Fund for an annual fee payable monthly as follows:
<TABLE>
<CAPTION>
Average Net Assets % Per Annum
- -----------------------------------
<S> <C>
First $250 million ... .500 of 1%
Next $250 million .... .475 of 1%
Next $250 million .... .425 of 1%
Over $750 million .... .275 of 1%
</TABLE>
Certain legal expenses were paid to Skadden, Arps, Slate, Meagher & Flom,
counsel to the Fund, of which a trustee of the Fund is an affiliated person.
For the year ended June 30, 1995, the Fund recognized expenses of
approximately $27,400 representing Van Kampen American Capital Distributors,
Inc.'s or its affiliates' (collectively "VKAC") cost of providing accounting,
legal and certain shareholder services to the Fund.
Certain officers and trustees of the Fund are also officers and directors of
VKAC. The Fund does not compensate its officers or trustees who are officers of
VKAC.
The Fund has implemented deferred compensation and retirement plans for its
Trustees. Under the deferred compensation plan, Trustees may elect to defer all
or a portion of their compensation to a later date. The retirement plan covers
those Trustees who are not officers
of VKAC. The Fund's liability under the deferred compensation and retirement
plans at June 30, 1995 was $24,500.
At June 30, 1995, VKAC owned 69,987 and 100 shares of Classes A and B,
respectively.
3. Capital Transactions
The Fund has outstanding two classes of common shares, Classes A and B. There
are an unlimited number of shares of each class without par value authorized.
12
Notes to Financial Statements (Continued)
June 30, 1995
At June 30, 1994, paid in surplus for Class A and Class B shares aggregated
$27,601,290 and $-0-, respectively. Transactions in shares were as follows:
<TABLE>
<CAPTION>
Year Ended Year Ended
June 30, 1995 June 30, 1994
- --------------------------------------------------------------
<S> <C> <C>
Sales:
Class A ...................... 84,390,774 79,908,069
Class B ...................... 21,212,451 -0-
----------- -----------
Total Sales ................... 105,603,225 79,908,069
----------- -----------
Dividend Reinvestment:
Class A ...................... 978,827 445,332
Class B ...................... 160,305 -0-
----------- -----------
Total Dividend Reinvestment ... 1,139,132 445,332
----------- -----------
Repurchases:
Class A ...................... (86,803,084) (74,519,684)
Class B ...................... (14,185,874) -0-
----------- -----------
Total Repurchases ............ (100,988,958) (74,519,684)
----------- -----------
</TABLE>
Class B shares are only offered through exchanges from Class B shares of other
Van Kampen American Capital sponsored funds. Class B shares are offered without
a front end sales charge, but are subject to the contingent deferred sales
charge (CDSC) of the fund in which the original purchase was made. The Class B
shares bear the expense of their respective deferred sales arrangements,
including higher distribution and service fees and incremental transfer agency
costs.
For the year ended June 30, 1995, VKAC, as Distributor for the Fund, received
CDSC on the redeemed shares of Class B of approximately $86,700. Sales charges
do not represent expenses of the Fund.
The Board of Trustees has approved the sale of the Fund's assets and
liabilities to the American Capital Reserve Fund (the "AC Fund"). This
transaction, subject to approval by the Fund's shareholders, is expected to be
completed in September 1995. As a result of this transaction, Fund shareholders
will receive shares of the AC Fund equal in value to their net assets.
13
Notes to Financial Statements (Continued)
June 30, 1995
4. Distribution and Service Plans
The Fund and its shareholders have adopted a distribution plan (the
"Distribution Plan") pursuant to Rule 12b-1 under the Investment Company Act of
1940 and a Service Plan (the "Service Plan," collectively the "Plans"). The
Plans govern payments for the distribution of the Fund's shares, ongoing
shareholder services and maintenance of shareholder accounts. Annual fees under
the Plans of up to .25% of Class A shares and 1.00% of Class B shares are
accrued daily. Included in these fees for the year ended June 30, 1995, are
payments to VKAC of approximately $44,500.
14
Independent Auditors' Report
The Board of Trustees and Shareholders of
Van Kampen Merritt Money Market Fund:
We have audited the accompanying statement of assets and liabilities of Van
Kampen Merritt Money Market Fund (the "Fund"), including the portfolio of
investments, as of June 30, 1995, and the related statement of operations for
the year then ended, the statement of changes in net assets for each of the two
years in the period then ended, and the financial highlights for each of the
periods presented. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of June
30, 1995, by correspondence with the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Van
Kampen Merritt Money Market Fund as of June 30, 1995, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the periods presented, in conformity with generally accepted accounting
principles.
KPMG Peat Marwick LLP
Chicago, Illinois
July 24, 1995
15
Funds Distributed by Van Kampen American Capital
GLOBAL AND
INTERNATIONAL
Global Equity Fund
Global Government Securities Fund
Global Managed Assets Fund
Short-Term Global Income Fund
Strategic Income Fund
EQUITY
Growth
Emerging Growth Fund
Enterprise Fund
Pace Fund
Growth & Income
Balanced Fund
Comstock Fund
Equity Income Fund
Growth and Income Fund
Harbor Fund
Real Estate Securities Fund
Utility Fund
FIXED INCOME
Corporate Bond Fund
Government Securities Fund
High Income Corporate Bond Fund
High Yield Fund
Limited Maturity Government Fund
Prime Rate Income Trust
Reserve Fund
U.S. Government Fund
U.S. Government Trust for Income
TAX-FREE
California Insured Tax Free Fund
Florida Insured Tax Free
Income Fund
High Yield Municipal Fund
Insured Tax Free Income Fund
Limited Term Municipal
Income Fund
Municipal Income Fund
New Jersey Tax Free Income Fund
New York Tax Free Income Fund
Pennsylvania Tax Free Income Fund
Tax Free High Income Fund
Tax Free Money Fund
Texas Tax Free Income Fund
THE GOVETT FUNDS
Emerging Markets Fund
Global Income Fund
International Equity Fund
Latin America Fund
Pacific Strategy Fund
Smaller Companies Fund
Ask your investment representative for a prospectus containing more complete
information, including sales charges and expenses. Please read it carefully
before you invest or send money. Or call us direct at 1-800-421-5666 weekdays
from 7:00 a.m. to 7:00 p.m. Central time.
16
Van Kampen Merritt Money Market Fund
Board of Trustees
Philip P. Gaughan
R. Craig Kennedy
Dennis J. McDonnell*
Donald C. Miller - Chairman
Jack E. Nelson
Jerome L. Robinson
Wayne W. Whalen*
Officers
Dennis J. McDonnell*
President
Ronald A. Nyberg*
Vice President and Secretary
Edward C. Wood, III*
Vice President and Treasurer
Peter W. Hegel*
Vice President
John L. Sullivan*
Controller
Nicholas Dalmaso*
Scott E. Martin*
Weston B. Wetherell*
Assistant Secretaries
Steven M. Hill*
Assistant Treasurer
Investment Adviser
Van Kampen American Capital
Investment Advisory Corp.
One Parkview Plaza
Oakbrook Terrace, Illinois 60181
Distributor
Van Kampen American Capital
Distributors, Inc.
One Parkview Plaza
Oakbrook Terrace, Illinois 60181
Transfer Agent (Effective July 10, 1995)
ACCESS 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
333 West Wacker Drive
Chicago, Illinois 60606
Independent Auditors
KPMG Peat Marwick LLP
Peat Marwick Plaza
303 East Wacker Drive
Chicago, Illinois 60601
*"Interested" persons of the Fund, as defined in the Investment Company Act of
1940.
(C)Van Kampen American Capital Distributors, Inc., 1995 All rights reserved.
SM denotes a service mark of
Van Kampen American Capital Distributors, 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.
17
