VAN KAMPEN LIFE INVESTMENT TRUST, N-30D, 1999-08-26

VAN KAMPEN LIFE INVESTMENT TRUST
N-30D, 1999-08-26

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<PAGE> 1

TABLE OF CONTENTS

<TABLE>
<S> <C>
Letter to Policyholders.......................... 1
Economic Snapshot................................ 2
Comstock Portfolio Performance Results........... 3
Portfolio Management Review.................... 4
Portfolio of Investments....................... 6
Statement of Assets and Liabilities............ 8
Statement of Operations........................ 9
Statement of Changes in Net Assets............. 10
Financial Highlights........................... 11
Emerging Growth Portfolio Performance Results.... 12
Portfolio Management Review.................... 13
Portfolio of Investments....................... 15
Statement of Assets and Liabilities............ 17
Statement of Operations........................ 18
Statement of Changes in Net Assets............. 19
Financial Highlights........................... 20
Enterprise Portfolio Performance Results......... 21
Portfolio Management Review.................... 22
Portfolio of Investments....................... 24
Statement of Assets and Liabilities............ 26
Statement of Operations........................ 27
Statement of Changes in Net Assets............. 28
Financial Highlights........................... 29
Growth and Income Portfolio Performance
Results........................................ 30
Portfolio Management Review.................... 31
Portfolio of Investments....................... 33
Statement of Assets and Liabilities............ 35
Statement of Operations........................ 36
Statement of Changes in Net Assets............. 37
Financial Highlights........................... 38
Morgan Stanley Real Estate Portfolio Performance
Results........................................ 39
Portfolio Management Review.................... 40
Portfolio of Investments....................... 42
Statement of Assets and Liabilities............ 43
Statement of Operations........................ 44
Statement of Changes in Net Assets............. 45
Financial Highlights........................... 46
Strategic Stock Portfolio Performance Results.... 47
Portfolio Management Review.................... 48
Portfolio of Investments....................... 50
Statement of Assets and Liabilities............ 51
Statement of Operations........................ 52
Statement of Changes in Net Assets............. 53
Financial Highlights........................... 54
Notes to Financial Statements.................... 55
</TABLE>

LIT SAR DOM 8/99
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE.
<PAGE> 2

LETTER TO POLICYHOLDERS

July 20, 1999

Dear Policyholder,
With the volatility that we've experienced recently in many financial
markets, some investors have sold securities because of uncertainty about where
the markets were going, only to be left rethinking whether they made the right
decision. We've witnessed this kind of market activity numerous times over the
past several years, sparked by concerns such as the impact of the Asian economic
crisis, high stock valuations, or, most recently, the stability of many high-
flying technology companies. While these fears eventually subsided, investors
who may have sold during this period were unable to reap the benefits of the
subsequent rally. That's partly because most of the recent big gains happened in
relatively short periods of time. This kind of volatility--and the danger of
making short-term decisions--highlights the importance of investing for the long
term, in accordance with your individual financial objectives.
Although the worst of the Asian crisis appears to be behind us, new concerns
are always emerging. In the coming months, we'll likely hear more about how the
year 2000 computer problem may affect the markets or that we're overdue for a
correction. While the markets could undoubtedly suffer as a result of these or
any number of other events, we encourage you to focus on your long-term
investment goals. Although nothing is certain, history has shown us that over
time, the markets tend to recover--and most investors want to be positioned to
take advantage of any recovery.
If you have concerns about market volatility or questions about how your
portfolio is structured to respond to these events, we encourage you to contact
your financial advisor. Your advisor can talk with you about sustaining a
long-term investment plan through a variety of market conditions. We hope that
Van Kampen Funds will play an important role as you and your advisor build a
portfolio designed to help you weather what the markets have in store.

Sincerely,

[SIG]
Richard F. Powers, III

Chairman
Van Kampen Asset Management Inc.

[SIG]
Dennis J. McDonnell

President
Van Kampen Asset Management Inc.

1
<PAGE> 3

ECONOMIC SNAPSHOT

The strength of the domestic economy continued to defy expectations in the
first half of 1999, although it finally began to show signs of slowing down.
Strong growth, healthy employment, and low inflation all contributed to the
favorable economic environment.

STRONG ECONOMIC GROWTH
The nation's gross domestic product rose at an impressive rate of 4.3
percent during the first quarter of 1999, but fell to 2.3 percent in the second
quarter. The first-quarter expansion was fueled by an increase in consumer
spending, which dropped to more moderate levels later in the reporting period.

POSITIVE EMPLOYMENT ENVIRONMENT
In May, the unemployment rate dropped to 4.2 percent--its lowest level in
more than 30 years. Throughout the reporting period, unemployment remained low,
the number of jobs grew, and wages rose. The labor market remained especially
tight in the service industry and most urban areas.

LOW INFLATION
Inflation remained low throughout most of the reporting period, although a
sharp increase in oil prices contributed to a spike in April's consumer price
index report (CPI). Following this up-tick, the Federal Reserve raised interest
rates 0.25 percent on June 30. Although the Fed had expressed a bias toward a
series of rate increases, May's tame CPI report prompted it to drop this bias
when announcing the June rate increase.

ECONOMIC OUTLOOK
Our outlook for the economy suggests that the moderate slowdown may
continue, bringing the economy back to historically normal growth levels.
Healthy job growth, which has been supporting the consumer confidence and
spending levels, showed signs of faltering toward the end of the reporting
period. However, a renewed optimism for corporate earnings, low unemployment,
and a vibrant housing market should provide some balance against a slower job
growth rate.

INTEREST RATES AND INFLATION
June 30, 1997, through June 30, 1999
[GRAPH]

<TABLE>
<CAPTION>
INTEREST RATES INFLATION
-------------- ---------
<S> <C> <C>
Jun 1997 6.5000 2.3000
6.0000 2.2000
5.5000 2.2000
Sep 1997 6.2500 2.2000
5.7500 2.1000
5.6875 1.8000
Dec 1997 6.5000 1.7000
5.5625 1.6000
5.6250 1.4000
Mar 1998 6.1250 1.4000
5.6250 1.4000
5.6875 1.7000
Jun 1998 6.0000 1.7000
5.5625 1.7000
5.9375 1.6000
Sep 1998 5.7500 1.5000
5.2500 1.5000
4.8750 1.5000
Dec 1998 4.0000 1.6000
4.8125 1.7000
4.8750 1.6000
Mar 1999 5.1250 1.7000
4.9375 2.3000
4.5000 2.1000
Jun 1999 4.0000 2.0000
</TABLE>

Interest rates are represented by the closing midline federal funds rate
on the last day of each month. Inflation is indicated by the annual
percent change of the Consumer Price Index for all urban consumers at
the end of each month.

2
<PAGE> 4

PERFORMANCE RESULTS FOR THE PERIOD ENDED JUNE 30, 1999

VAN KAMPEN LIFE INVESTMENT TRUST

COMSTOCK PORTFOLIO

<TABLE>
<S> <C>
TOTAL RETURNS
Life-of-Portfolio cumulative total return based on NAV(1)... 0.70%
Commencement date........................................... 04/30/99
</TABLE>

(1) Total return based on net asset value (NAV) assumes an investment at the
beginning of the period indicated, reinvestment of all distributions for the
period, and sale of all shares at the end of the period, all at NAV.

Total returns do not include any charges, expenses, or fees imposed by an
insurance company at the underlying portfolio or separate account levels. If the
returns included the effect of these additional charges, the returns would have
been lower.

An investment should be made with an understanding of the risks that an
investment in equity securities entails. These include the risk that the
financial condition of the issuers of the securities in the portfolio, or the
condition of the stock market in general, may worsen and therefore, the value of
Portfolio shares may decline. Past performance does not guarantee future
results. Investment return and net asset value will fluctuate with market
conditions. Portfolio shares, when redeemed, may be worth more or less than
their original cost.

Because the prices of common stocks and other securities fluctuate, the value of
an investment in the Portfolio will vary upon the Portfolio's investment
performance. Foreign securities may magnify volatility due to changes in foreign
exchange rates, the political and economic uncertainties in foreign countries,
and the potential lack of liquidity, government supervision, and regulation.

Market forecasts provided in this report may not necessarily come to pass.

The Portfolio being offered is through a variable annuity contract.

3
<PAGE> 5

PORTFOLIO MANAGEMENT REVIEW

COMSTOCK PORTFOLIO

The following is an interview with the portfolio management team of the Van
Kampen Life Investment Trust--Comstock Portfolio. The team is led by B. Robert
Baker, Jr., senior portfolio manager, Jason Leder and Edie Terreson, portfolio
managers, and Stephen L. Boyd, chief investment officer for equity investments.
The following excerpts reflect their views on the Portfolio's performance since
its inception on April 30, 1999, through June 30, 1999.

Q CAN YOU DESCRIBE THE STOCK MARKET ENVIRONMENT SINCE THE INCEPTION OF THE
PORTFOLIO?

A Investors displayed confidence in the U.S. stock market as global
economies showed new strength and the domestic economy remained healthy.
The Dow Jones Industrial Average broke past the 11,000 point milestone in
May and fluctuated in the upper 10,000 point range for the rest of the period.
For value-oriented portfolios such as the Comstock Portfolio, the second quarter
of 1999 was very favorable. Investors became more willing to pursue undervalued,
economically sensitive stocks rather than seek the perceived safety of blue-chip
growth companies, which they had preferred earlier in the year.

Q WHAT WAS YOUR STRATEGY IN SEEKING TO MEET THE PORTFOLIO'S OBJECTIVE?

A We consistently seek to invest in undervalued stocks that we believe have
the potential for future price appreciation. To do this, we look for
companies that are temporarily out of favor in the marketplace, meaning
their stock prices are lower than we believe they should be. Then, we apply
basic fundamental analysis to determine whether the company is sound and has the
potential to reach its fair value. When we find a company that we think is
undervalued and fundamentally sound, we consider adding it to the Portfolio.

Q HOW HAVE YOU APPLIED THIS STRATEGY IN INVESTING THE PORTFOLIO'S NEW
ASSETS?

A The utility sector is currently an undervalued area of the market, so
we've built up a significant weighting here. These stocks have struggled
this year, although recently their performance has improved relative to
the rest of the market. In accordance with our value strategy, we remain
heavily weighted in utilities because their valuations continue to be low and we
believe the fundamentals of this sector are attractive.
Cyclical stocks--including commodities such as paper, oil, and other raw
materials--are also well represented in the Portfolio. Lately, these stocks have
been cheap compared to the rest of the market, so we invested substantially in
this area.

Q WHICH STOCKS SUPPORTED PORTFOLIO PERFORMANCE?

A Cyclical stocks performed well in the second quarter of 1999, and we saw
favorable returns from paper company Boise Cascade and retailer Federated
Department Stores. Other large holdings that have helped the Portfolio's
total return since inception included United HealthCare and Bell Atlantic.
Remember that not all stocks in the Portfolio performed well, and there is no
guarantee that any of these stocks will perform as well in the future.

Q WHAT FACTORS WORKED AGAINST THE PORTFOLIO?

A The sluggish performance of utility stocks year to date had a negative
effect on the Portfolio. In addition, we were disappointed by one of our
largest holdings, Tenet Healthcare, which has lost 21 percent since the
Portfolio's inception. This company is struggling with the challenges imposed by
managed care and changing Medicare reimbursement policies. On the plus side,
Tenet recently purchased a number of failing hospitals in the Philadelphia

4
<PAGE> 6

area and has been turning them around faster than expected. We view Tenet as a
long-term holding and have maintained our investment.

Q HOW DID THE PORTFOLIO PERFORM SINCE ITS INCEPTION?

A From April 30, 1999, to June 30, 1999, the Portfolio achieved a total
return of 0.70 percent(1). By comparison, the Standard & Poor's 500 Index
returned 3.12 percent for the same period, and the Lipper Growth and
Income Fund Index, which more closely resembles the Portfolio, returned 2.62
percent. The S&P 500 Index is a broad-based, unmanaged index that reflects the
general performance of the stock market, and the Lipper Growth and Income Fund
Index reflects the average performance of the 30 largest growth and income
funds. Past performance is no guarantee of future results.
Keep in mind that these indices are statistical composites that do not
include any commissions or sales charges that would be paid by an investor
purchasing the securities represented by these indices. Please refer to the
chart and footnotes on page 3 for additional Portfolio performance results.

Q WHAT IS YOUR OUTLOOK FOR THE PORTFOLIO FOR THE REMAINDER OF THE YEAR?

A The U.S. economy is still growing steadily and inflation remains subdued.
In addition, overseas economies appear to be regaining their strength
after two turbulent years. The U.S. stock market reflects these positive
conditions, as investors are showing a renewed interest in undervalued,
economically sensitive stocks. We will continue to be vigilant in assessing your
Portfolio's holdings as well as potential new investments in our efforts to
achieve the Portfolio's objective.

B. Robert Baker, Jr.
Senior Portfolio Manager
Comstock Portfolio

Jason Leder
Portfolio Manager
Comstock Portfolio

Edie Terreson
Portfolio Manager
Comstock Portfolio

Stephen L. Boyd
Chief Investment Officer
Equity Investments

5
<PAGE> 7

COMSTOCK PORTFOLIO PORTFOLIO OF INVESTMENTS

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Description Shares Market Value
- ---------------------------------------------------------
<S> <C> <C>
COMMON STOCKS 88.5%
CONSUMER DISTRIBUTION 3.1%
Consolidated Stores Corp. (a)..... 240 $ 6,480
Federated Department Stores,
Inc. (a)........................ 200 10,587
Saks, Inc. (a).................... 530 15,304
----------
32,371
----------
CONSUMER NON-DURABLES 5.5%
Dial Corp......................... 380 14,131
Payless Shoesource, Inc. (a)...... 210 11,235
Philip Morris Cos., Inc........... 810 32,552
----------
57,918
----------
CONSUMER SERVICES 0.4%
Mirage Resorts, Inc. (a).......... 230 3,853
----------
ENERGY 9.2%
Atlantic Richfield Co............. 120 10,027
BP Amoco PLC -- ADR (United
Kingdom)........................ 90 9,765
Chevron Corp...................... 140 13,326
Diamond Offshore Drilling, Inc.... 140 3,973
ENSCO International, Inc.......... 380 7,576
Halliburton Co.................... 170 7,693
Rowan Cos., Inc. (a).............. 370 6,822
Texaco, Inc....................... 170 10,625
Ultramar Diamond Shamrock......... 310 6,762
Unocal Corp....................... 290 11,491
USX -- Marathon Group............. 260 8,466
----------
96,526
----------
FINANCE 13.1%
AMBAC Financial Group, Inc........ 370 21,136
Aon Corp.......................... 90 3,713
Bank One Corp..................... 70 4,169
BankAmerica Corp.................. 140 10,264
Bear Stearns Cos., Inc............ 200 9,350
Chase Manhattan Corp.............. 70 6,064
Everest Reinsurance Holdings,
Inc............................. 160 5,220
LandAmerica Financial Group,
Inc............................. 120 3,450
Liberty Financial Cos., Inc....... 70 2,039
Providian Financial Corp.......... 320 29,920
Torchmark, Inc.................... 210 7,166
United Asset Management Corp...... 140 3,185
Washington Mutual, Inc............ 480 16,980
Wells Fargo Company............... 340 14,535
----------
137,191
----------
HEALTHCARE 9.5%
Aetna, Inc........................ 50 4,472
American Home Products Corp....... 200 11,500
HEALTHSOUTH Corp. (a)............. 400 5,975
Mylan Laboratories, Inc........... 210 5,565
Rhone-Poulenc, SA, Class A
-- ADR (France)................. 440 20,295
Tenet Healthcare Corp. (a)........ 1,970 36,568
United HealthCare Corp............ 250 15,656
----------
100,031
----------
</TABLE>

<TABLE>
<CAPTION>
Description Shares Market Value
- ---------------------------------------------------------
<S> <C> <C>
PRODUCER MANUFACTURING 4.4%
Waste Management, Inc............. 860 $ 46,225
----------
RAW MATERIALS/PROCESSING
INDUSTRIES
12.4%
Barrick Gold Corp................. 280 5,425
Bethlehem Steel Corp. (a)......... 1,020 7,841
Boise Cascade Corp................ 490 21,009
British Steel PLC -- ADR (United
Kingdom)........................ 200 5,213
Champion International Corp....... 270 12,926
Freeport-McMoRan Copper & Gold,
Inc., Class B (a)............... 640 11,480
Homestake Mining Co............... 560 4,585
Imperial Chemical Industries
PLC -- ADR (United Kingdom)..... 200 7,950
International Paper Co............ 189 9,550
Kimberly Clark Corp............... 260 14,820
Louisiana-Pacific Corp............ 350 8,312
Placer Dome, Inc.................. 470 5,552
Temple-Inland Inc................. 70 4,778
USX -- U.S. Steel, Inc............ 420 11,340
----------
130,781
----------
TECHNOLOGY 8.2%
American Power Conversion
Corp. (a)....................... 620 12,477
Avnet, Inc........................ 110 5,115
BMC Software, Inc. (a)............ 150 8,100
Check Point Software Technologies
Ltd. (a)........................ 200 10,725
Cognex Corp. (a).................. 460 14,519
Comverse Technology, Inc. (a)..... 90 6,795
ECI Telecommunications Ltd........ 190 6,306
Hewlett-Packard Co................ 30 3,015
SunGard Data Systems, Inc. (a).... 550 18,975
----------
86,027
----------
TRANSPORTATION 0.6%
Canadian National Railway Co. .... 100 6,700
----------
UTILITIES 22.1%
BEC Energy........................ 360 14,850
Bell Atlantic Corp................ 180 11,768
Carolina Power & Light Co......... 180 7,706
Central & South West Corp......... 320 7,480
Constellation Energy Group........ 190 5,629
DTE Energy Co..................... 490 19,600
Edison International.............. 260 6,955
Entergy Corp...................... 180 5,625
FirstEnergy Corp.................. 240 7,440
GPU, Inc.......................... 260 10,969
Idacorp Inc....................... 320 10,080
Illinova Corp..................... 280 7,630
New Century Energies, Inc......... 420 16,301
Northern States Power Co.......... 180 4,354
OGE Energy Corp................... 420 9,975
PacifiCorp........................ 170 3,124
PG&E Corp. ....................... 160 5,200
</TABLE>

See Notes to Financial Statements

6
<PAGE> 8
COMSTOCK PORTFOLIO PORTFOLIO OF INVESTMENTS (CONTINUED)

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Description Shares Market Value
- ---------------------------------------------------------
<S> <C> <C>
UTILITIES (CONTINUED)
Pinnacle West Capital Corp........ 200 $ 8,050
Public Service Co. of New
Mexico.......................... 320 6,360
Public Service Enterprise Group... 200 8,175
Reliant Energy, Inc............... 620 17,127
Texas Utilities Co................ 670 27,637
Unicom Corp....................... 260 10,026
----------
232,061
----------
</TABLE>

<TABLE>
<CAPTION>
Description Market Value
- -----------------------------------------------------
<S> <C>
TOTAL LONG-TERM INVESTMENTS 88.5%
(Cost $934,264).................... $ 929,684
REPURCHASE AGREEMENT 10.9%
DLJ Mortgage Acceptance Corp. ($115,000
par collateralized by U.S. Government
obligations in a pooled cash account,
dated 6/30/99, to be sold on 7/1/99
at $115,015)
(Cost $115,000)...................... 115,000
----------
TOTAL INVESTMENTS 99.4%
(Cost $1,049,264).................. 1,044,684
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.6%.................... 5,900
----------
NET ASSETS 100.0%..................... $1,050,584
----------
</TABLE>

(a) Non-income producing security as this stock currently does not declare
dividends.

ADR -- American Depository Receipt

See Notes to Financial Statements

7
<PAGE> 9

COMSTOCK PORTFOLIO STATEMENT OF ASSETS AND LIABILITIES

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Total Investments, including repurchase agreement of
$115,000 (Cost $1,049,264)................................ $1,044,684
Cash........................................................ 3,344
Receivables:
Expense Reimbursement by Adviser.......................... 14,746
Investments Sold.......................................... 9,664
Dividends................................................. 1,866
----------
Total Assets.......................................... 1,074,304
----------
LIABILITIES:
Payables:
Investments Purchased..................................... 10,367
Distributor and Affiliates................................ 5,673
Accrued Expenses............................................ 6,006
Trustees' Deferred Compensation and Retirement Plans........ 1,674
----------
Total Liabilities..................................... 23,720
----------
NET ASSETS.................................................. $1,050,584
==========
NET ASSETS CONSIST OF:
Capital (Par value of $.01 per share with an unlimited
number of shares authorized).............................. $1,044,412
Accumulated Net Realized Gain............................... 7,792
Accumulated Undistributed Net Investment Income............. 2,960
Net Unrealized Depreciation................................. (4,580)
----------
NET ASSETS.................................................. $1,050,584
==========
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER
SHARE
(Based on net assets of $1,050,584 and 104,351 shares of
beneficial interest issued and outstanding)............... $ 10.07
==========
</TABLE>

See Notes to Financial Statements

8
<PAGE> 10

COMSTOCK PORTFOLIO STATEMENT OF OPERATIONS

For the Period April 30, 1999 (Commencement of Investment Operations) to June
30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

INVESTMENT INCOME:
Dividends (Net of foreign withholding taxes of $69)......... $ 3,735
Interest.................................................... 875
-------
Total Income............................................ 4,610
-------
EXPENSES:
Accounting.................................................. 5,580
Custody..................................................... 3,100
Reports to Shareholders..................................... 3,100
Audit....................................................... 2,480
Trustees' Fees and Related Expenses......................... 2,043
Investment Advisory Fee..................................... 1,042
Legal....................................................... 93
-------
Total Expenses.......................................... 17,438
Expense Reduction....................................... 15,788
-------
Net Expenses............................................ 1,650
-------
NET INVESTMENT INCOME....................................... $ 2,960
=======
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Gain........................................... $ 7,792
-------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... -0-
End of the Period......................................... (4,580)
-------
Net Unrealized Depreciation During the Period............... (4,580)
-------
NET REALIZED AND UNREALIZED GAIN............................ $ 3,212
=======
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $ 6,172
=======
</TABLE>

See Notes to Financial Statements

9
<PAGE> 11

COMSTOCK PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS

For the Period April 30, 1999 (Commencement of Investment Operations) to June
30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Period Ended
June 30, 1999
- --------------------------------------------------------------------------
<S> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income....................................... $ 2,960
Net Realized Gain........................................... 7,792
Net Unrealized Depreciation During the Period............... (4,580)
----------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES......... 6,172
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold................................... 44,412
----------
TOTAL INCREASE IN NET ASSETS................................ 50,584
NET ASSETS:
Beginning of the Period..................................... 1,000,000
----------
End of Period (Including accumulated undistributed net
investment income of $2,960).............................. $1,050,584
==========
</TABLE>

See Notes to Financial Statements

10
<PAGE> 12

COMSTOCK PORTFOLIO FINANCIAL HIGHLIGHTS

The following schedule presents financial highlights for one share of
the Portfolio outstanding throughout the period indicated. (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
April 30, 1999
(Commencement
of Investment
Operations)
to June 30, 1999
- -----------------------------------------------------------------------------
<S> <C>
Net Asset Value, Beginning of the Period.................... $10.000
-------
Net Investment Income..................................... .028
Net Realized and Unrealized Gain.......................... .040
-------
Total from Investment Operations............................ 0.68
-------
Net Asset Value, End of the Period.......................... $10.068
=======
Total Return*............................................... 0.70%**
Net Assets at End of the Period (In millions)............... $ 1.1
Ratio of Expenses to Average Net Assets*.................... .95%
Ratio of Net Investment Income to Average Net Assets*....... 1.70%
Portfolio Turnover.......................................... 9%**
* If certain expenses had not been assumed by Van Kampen,
Total Return would have been lower and the ratios would
have been as follows:
Ratio of Expenses to Average Net Assets..................... 10.00%
Ratio of Net Investment Income to Average Net Assets........ (7.36%)
-------
</TABLE>

** Non-Annualized

See Notes to Financial Statements

11
<PAGE> 13

PERFORMANCE RESULTS FOR THE PERIOD ENDED JUNE 30, 1999

VAN KAMPEN LIFE INVESTMENT TRUST

EMERGING GROWTH PORTFOLIO

<TABLE>
<S> <C>
TOTAL RETURNS
Six-month total return based on NAV(1)...................... 21.97%
One-year total return based on NAV(1)....................... 37.33%
Three-year average annual total return based on NAV(1)...... 26.33%
Life-of-Portfolio average annual total return based on
NAV(1).................................................... 28.94%
Commencement date........................................... 07/03/95
</TABLE>

See the Comparative Performance section of the current prospectus. An investment
should be made with an understanding of the risks that an investment in equity
securities entails. These include the risk that the financial condition of the
issuers of the securities in the portfolio, or the condition of the stock market
in general, may worsen and therefore, the value of Portfolio shares may decline.
Past performance does not guarantee future results. Investment return and net
asset value will fluctuate with market conditions. Portfolio shares, when
redeemed, may be worth more or less than their original cost.

Market forecasts provided in this report may not necessarily come to pass.

The Portfolio being offered is through a variable annuity contract.

12
<PAGE> 14

PORTFOLIO MANAGEMENT REVIEW

EMERGING GROWTH PORTFOLIO

The following is an interview with the portfolio management team of the Van
Kampen Life Investment Trust--Emerging Growth Portfolio. The team is led by Gary
M. Lewis, senior portfolio manager; Dudley Brickhouse, Janet Luby, and David
Walker, portfolio managers; and Stephen L. Boyd, chief investment officer for
equity investments.

Q WHAT MARKET FACTORS AFFECTED THE PORTFOLIO DURING THE REPORTING PERIOD?

A As has been its trademark recently, the stock market was volatile during
the first six months of 1999. The Dow Jones Industrial Average passed two
significant milestones during the reporting period--10,000 in late March
and 11,000 in early May. Small-cap stocks, measured by the Russell 2000,
performed solidly if not spectacularly during the six months, as most of the
market's upward movement was propelled by larger stocks. Investors' anticipation
of an interest-rate increase placed downward pressure on the stock market late
in the reporting period, particularly among growth stocks. In response to this
shift from growth investments, investors began to favor cyclical stocks. The
Federal Reserve did indeed raise interest rates on the last day of the reporting
period, but, because the increase was widely expected, the effect on stock
prices was limited.

Q SO HOW DID YOU MANAGE THE PORTFOLIO IN RESPONSE TO THESE EVENTS?

A Our investment strategy has worked well for us in the past, so we didn't
alter our stock-selection approach when market conditions shifted. As
always, our technique was to look for stocks with rising earnings
expectations and rising valuations, and we invested in those companies we
believed had the potential to outperform earnings expectations. Conversely, we
sold stocks if their underlying companies' earnings estimates or valuations were
declining. We consistently manage the Portfolio from the "bottom up," meaning
that we evaluate each company individually before deciding to invest.
As the reporting period went on, it became increasingly difficult to
identify stocks that met our investment criteria. That's because the market
began to favor cyclical stocks in the last few months of the reporting period.
As a result, we moved into a handful of cyclical stocks with high-growth
characteristics.

Q WHAT WERE SOME OF THE PORTFOLIO'S BEST PERFORMERS DURING THE PERIOD?

A Companies involved in wireless communications were particularly successful
investments for the Portfolio. This is a burgeoning market, and these
companies are benefiting greatly from the transition from analog to
digital systems. During the reporting period we purchased Qualcomm, which
was one of the Portfolio's best performers. Leading cellular phone manufacturer
Nokia continued to be a mainstay of the Portfolio and performed very well during
the reporting period, as did RF Micro Devices, a component supplier to Nokia.
Many Internet companies continued to appreciate in value, although we
shifted our focus from service companies to firms that provide the Internet's
infrastructure. Holdings from this area that helped the Portfolio's return
included Exodus Communications, Cisco Systems, Broadcom, and Uniphase.
The performance of the Portfolio was also enhanced significantly by VISX, a
leading manufacturer of equipment used for laser vision-correction; Gemstar
International, best known for its VCR Plus+ product; and Echostar
Communications, a company providing direct-broadcast satellite-television
service.
We also found success with a number of our retail holdings--especially those
that could capitalize on consumer demand for technology. Companies like Tandy
and Circuit City, newly purchased during the period, and Best Buy, a longtime
holding in the Portfolio, performed very well because they were beneficiaries of
this increased demand.

13
<PAGE> 15

Q DID ANY STOCKS HURT THE PORTFOLIO?

A Some technology stocks were hurt by concerns about the year 2000
phenomenon--namely, that corporate spending on computer hardware,
software, and services would slow down in the face of companies' need to
focus on critical year 2000 projects. Technology companies whose performance
suffered included Compuware, Legato Systems, and New Era of Networks. We sold
our position in Dell Computer, not only because of concerns about the year 2000
problem, but also because intense price competition in the personal-computer
market helped drive down the company's stock price and led to downward revisions
of Dell's estimated earnings.
Other disappointments included cable, satellite, and on-line
service-provider CSG Systems and Tricon Global, the restaurant company chain
that manages Kentucky Fried Chicken, Pizza Hut, and Taco Bell. Financial
services companies were relative underperformers during the reporting period as
fears of an interest-rate hike weighed on the sector. Examples of laggards in
this area were banking companies such as Firstar, Fifth Third Bancorp, and
Amsouth Bancorporation.

Q HOW DID THE PORTFOLIO PERFORM OVERALL?

A As a result of our successful stock selection--especially in the
technology area--the Portfolio performed extremely well, achieving a
six-month total return of 21.97 percent(1) as of June 30, 1999. By
comparison the Standard & Poor's 400 MidCap Index returned 6.86 percent,
and the Russell 2000 Index returned 9.28 percent.
The Portfolio invests primarily in companies whose market capitalizations
fall within the range of the companies composing the Standard & Poor's 400
MidCap Index. This range is between approximately $247 million and $11 billion,
as of June 30, 1999. The S&P 400 MidCap Index is a broad-based index that
reflects the general performance of 400 domestic mid-cap stocks, and the Russell
2000 Index reflects the general performance of small-cap stocks. These indices
are statistical composites that do not include any commissions or sales charges
that would be paid by an investor purchasing the securities or investments
represented by these indices. Please refer to the chart and footnotes on page 12
for additional portfolio performance results. Past performance does not
guarantee future results.

Q WHAT DO YOU SEE AHEAD FOR THE PORTFOLIO THROUGH THE END OF THE YEAR?

A We're anticipating that continued market volatility will have an impact on
the Portfolio. Concerns about interest rates will make for an interesting
next six months, and questions about the year 2000 problem will affect
investors' decisions--although to what extent is uncertain. We do think that
corporate spending on the year 2000 problem will lead to a slowdown in the
software industry, because firms may delay their purchases of new software until
after the new year. Also, we continue to adjust to a new "day trading" stock
market culture, which has led to a new standard of volatility.
Through all of these situations, we will continue to do what has worked well
for us in the past, which is invest according to our discipline. In volatile
times our job is more difficult because it can be challenging to find stocks
that meet our criteria. In that case, we search harder for stocks whose
valuations are increasing or for those stocks whose valuations are declining the
least. Either way, we have confidence in our investment strategy and stick with
it during all types of market conditions.

Gary M. Lewis
Senior Portfolio Manager
Emerging Growth Portfolio
David Walker
Portfolio Manager
Emerging Growth Portfolio

Dudley Brickhouse
Portfolio Manager
Emerging Growth Portfolio
Stephen L. Boyd
Chief Investment Officer
Equity Investments

Janet Luby
Portfolio Manager
Emerging Growth Portfolio

14
<PAGE> 16

EMERGING GROWTH PORTFOLIO PORTFOLIO OF INVESTMENTS

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Description Shares Market Value
- --------------------------------------------------------
<S> <C> <C>
COMMON STOCKS 92.5%
CONSUMER DISTRIBUTION 14.1%
American Eagle Outfitters (a).... 8,500 $ 386,750
AnnTaylor Stores Corp. (a) ...... 5,400 243,000
Bed Bath & Beyond, Inc. (a)...... 13,500 519,750
Best Buy Co., Inc. (a)........... 45,000 3,037,454
BJ's Wholesale Club, Inc. (a).... 5,000 150,312
Circuit City Stores-Circuit City
Group.......................... 18,750 1,743,750
Consolidated Stores Corp. (a).... 7,500 202,500
Family Dollar Stores, Inc. ...... 16,000 384,000
Home Depot, Inc. ................ 11,000 708,812
Lexmark International Group,
Inc., Class A (a).............. 16,500 1,090,031
Lowe's Cos., Inc. ............... 8,400 476,175
Ross Stores, Inc. ............... 2,500 125,938
Staples, Inc. (a)................ 16,000 495,000
Tandy Corp. ..................... 25,000 1,221,875
Tiffany & Co. ................... 4,800 483,200
TJX Cos., Inc. .................. 8,700 289,819
-----------
11,538,366
-----------
CONSUMER DURABLES 1.5%
Gentex Corp. (a)................. 4,500 126,000
Harley-Davidson, Inc. ........... 6,400 348,000
Hasbro, Inc. .................... 11,800 329,662
Maytag Corp. .................... 5,700 397,219
-----------
1,200,881
-----------
CONSUMER NON-DURABLES 2.9%
Abercrombie & Fitch Co., Class
A (a).......................... 21,000 1,008,000
Intimate Brands, Inc., Class A... 12,075 572,053
Linens 'n Things, Inc. (a)....... 9,500 415,625
Nike, Inc., Class B.............. 2,200 139,288
Tommy Hilfiger Corp. (a)......... 3,900 286,650
-----------
2,421,616
-----------
CONSUMER SERVICES 8.8%
Adelphia Communications Corp.,
Class A (a).................... 3,500 222,688
Brinker International, Inc.
(a)............................ 3,700 100,594
Cablevision Systems Corp., Class
A (a).......................... 9,500 665,000
CBS Corp. (a).................... 7,800 338,812
Clear Channel Communications,
Inc. (a)....................... 21,079 1,453,134
Comcast Corp., Class A........... 10,700 411,281
Darden Restaurants, Inc. ........ 5,500 119,969
Hispanic Broadcasting Corp.
(a)............................ 3,000 227,625
Infospace.Com, Inc. (a).......... 2,600 122,200
International Network Services
(a)............................ 6,300 254,362
Mandalay Resort Group (a)........ 5,000 105,625
Metris Cos., Inc. ............... 5,000 203,750
Omnicom Group, Inc. ............. 9,500 760,000
Outback Steakhouse, Inc. (a)..... 13,500 530,719
Outdoor Systems, Inc. (a)........ 7,500 273,750
SFX Entertainment, Inc., Class A
(a)............................ 3,400 217,600
TMP Worldwide, Inc. ............. 4,800 304,800
</TABLE>

<TABLE>
<CAPTION>
Description Shares Market Value
- --------------------------------------------------------
<S> <C> <C>
CONSUMER SERVICES (CONTINUED)
Univision Communications, Inc.,
Class A (a).................... 9,000 $ 594,000
Valassis Communications, Inc.
(a)............................ 8,000 293,000
-----------
7,198,909
-----------
ENERGY 0.8%
Amerada Hess Corp. .............. 3,700 220,150
Apache Corp. .................... 9,500 370,500
Vastar Resources, Inc. .......... 1,400 73,412
-----------
664,062
-----------
FINANCE 3.7%
Capital One Financial Corp. ..... 16,000 891,000
First Tennessee National
Corp. ......................... 4,300 164,744
Firstar Corp. ................... 16,000 448,000
Hertz Corp., Class A............. 2,700 167,400
Knight/Trimark Group, Inc., Class
A (a).......................... 3,400 205,062
Marsh & McLennan Cos., Inc. ..... 2,400 181,200
Northern Trust Corp. ............ 3,200 310,400
Old Kent Financial Corp. ........ 3,675 153,891
Providian Financial Corp. ....... 5,500 514,250
-----------
3,035,947
-----------
HEALTHCARE 8.9%
Allergan, Inc. .................. 9,500 1,054,500
Andrx Corp. (a).................. 3,000 231,375
Bausch & Lomb, Inc. ............. 7,400 566,100
Biogen, Inc. (a)................. 16,400 1,054,725
Biomet, Inc. .................... 2,600 103,350
Boston Scientific Corp. (a)...... 7,000 307,562
Cree Research, Inc. (a).......... 2,500 192,344
IDEC Pharmaceuticals, Corp.
(a)............................ 4,700 362,194
Immunex Corp. (a)................ 9,000 1,146,938
Medimmune, Inc. (a).............. 13,000 880,750
MiniMed, Inc. (a)................ 2,200 169,262
St. Jude Medical Inc. (a)........ 4,500 160,313
TLC The Laser Center, Inc. (a)... 900 43,200
VISX, Inc. (a)................... 13,500 1,069,031
-----------
7,341,644
-----------
PRODUCER MANUFACTURING 3.2%
Antec Corp. (a).................. 4,800 153,900
Corning, Inc. ................... 3,000 210,375
Danaher Corp. ................... 5,700 331,313
Metromedia Fiber Network, Inc.
(a)............................ 27,000 970,312
Tyco International Ltd........... 10,250 971,187
-----------
2,637,087
-----------
RAW MATERIALS/PROCESSING INDUSTRIES 0.5%
Ball Corp. ...................... 3,300 139,425
Weyerhaeuser Co. ................ 1,600 110,000
Willamette Industries, Inc. ..... 3,800 175,038
-----------
424,463
-----------
TECHNOLOGY 45.7%
Adaptec, Inc. (a)................ 5,800 204,813
Adobe Systems, Inc. ............. 5,500 451,859
Affiliated Computer Services,
Inc., Class A (a).............. 1,400 70,875
</TABLE>

See Notes to Financial Statements

15
<PAGE> 17
EMERGING GROWTH PORTFOLIO PORTFOLIO OF INVESTMENTS (CONTINUED)

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Description Shares Market Value
- --------------------------------------------------------
<S> <C> <C>
TECHNOLOGY (CONTINUED)
Altera Corp. (a)................. 18,000 $ 662,625
America Online, Inc. (a)......... 14,600 1,613,300
Analog Devices, Inc. (a)......... 13,000 652,438
Applied Materials, Inc. (a)...... 6,000 443,250
Applied Micro Circuits Corp.
(a)............................ 4,000 329,000
Broadcom Corp., Class A (a)...... 12,500 1,807,031
BroadVision, Inc. (a)............ 2,000 147,500
C/Net Inc. (a)................... 6,000 345,750
Cisco Systems, Inc. (a).......... 9,969 641,131
Citrix Systems, Inc. (a)......... 8,700 491,550
Clarify, Inc. (a)................ 5,000 206,250
Compuware Corp. (a).............. 7,300 232,231
Comverse Technology, Inc. (a).... 13,600 1,026,800
Concord EFS, Inc. (a)............ 7,500 317,344
Conexant Systems, Inc. (a)....... 19,500 1,132,219
CSG Systems International, Inc.
(a)............................ 10,200 267,113
Echostar Communications Corp.,
Class A (a).................... 8,250 1,265,859
Electronics for Imaging, Inc.
(a)............................ 9,500 488,063
EMC Corp. (a).................... 14,000 770,000
Exodus Communications, Inc.
(a)............................ 3,900 467,756
Fiserv, Inc. (a)................. 5,500 172,219
Flextronics International Corp.
(a)............................ 8,000 444,000
Gemstar International Group Ltd.
(a)............................ 20,500 1,337,625
General Instrument Corp. (a)..... 7,000 297,500
Global Crossing Ltd. (a)......... 2,602 110,953
Gulfstream Aerospace Corp. (a)... 3,200 216,200
Intuit, Inc. (a)................. 2,700 243,338
Jabil Circuit, Inc. (a).......... 7,100 320,388
LSI Logic Corp. (a).............. 27,500 1,268,438
Macromedia, Inc. (a)............. 7,200 253,800
McLeodusa, Inc. (a).............. 2,700 148,500
Mercury Interactive Corp. (a).... 6,000 212,250
Microsoft Corp. (a).............. 3,200 288,600
Mindspring Enterprises, Inc.
(a)............................ 9,400 416,537
Motorola, Inc. .................. 6,300 596,925
Network Appliance, Inc. (a)...... 14,000 782,250
Nokia Corp. -- ADR (Finland)..... 15,500 1,419,219
Nortel Networks Corp............. 9,000 781,312
Novell, Inc. (a)................. 11,000 291,500
PMC Sierra, Inc. (a)............. 10,500 618,844
Qlogic Corp. (a)................. 3,700 488,400
</TABLE>

<TABLE>
<CAPTION>
Description Shares Market Value
- --------------------------------------------------------
<S> <C> <C>
TECHNOLOGY (CONTINUED)
Qualcomm, Inc. (a)............... 13,500 $ 1,937,250
Rational Software Corp. (a)...... 15,000 494,062
Real Networks Inc. (a)........... 3,400 234,175
RF Micro Devices Inc. (a)........ 7,800 582,075
Sapient Corp. (a)................ 1,600 90,600
SDL, Inc. (a).................... 5,000 255,313
Siebel Systems, Inc. (a)......... 12,000 795,750
Solectron Corp. (a).............. 2,500 166,719
STMicroelectronics NV -- ADR
(Netherlands).................. 9,500 659,062
SunGard Data Systems, Inc. (a)... 4,700 162,150
Taiwan Semiconductor-SP -- ADR
(Korea) (a).................... 6,500 221,000
Teradyne, Inc. (a)............... 8,800 631,400
Texas Instruments, Inc. ......... 6,000 870,000
Uniphase Corp. (a)............... 10,000 1,660,000
VeriSign, Inc. (a)............... 8,500 733,125
Veritas Software Corp. (a)....... 10,000 949,375
Vitesse Semiconductor Corp.
(a)............................ 14,500 977,844
Waters Corp. (a)................. 9,500 504,688
Xilinx, Inc. (a)................. 15,000 858,750
-----------
37,526,893
-----------
TRANSPORTATION 0.4%
Southwest Airlines Co. .......... 10,500 326,813
-----------
UTILITIES 2.0%
AT&T Corp. (a)................... 18,500 679,875
Century Telephone, Inc. ......... 4,800 190,800
Global Telesystems Group, Inc.
(a)............................ 3,250 263,250
Level 3 Communications, Inc.
(a)............................ 8,300 498,519
-----------
1,632,444
-----------
TOTAL LONG-TERM INVESTMENTS 92.5%
(Cost $57,145,918)..................... 75,949,125
REPURCHASE AGREEMENT 8.7%
Goldman Sachs & Co ($7,155,000 par
collateralized by U.S. Government
obligations in a pooled cash account,
dated 6/30/99, to be sold on 07/01/99
at $7,155,964) (Cost $7,155,000)....... 7,155,000
-----------
TOTAL INVESTMENTS 101.2%
(Cost $64,300,918)..................... 83,104,125
LIABILITIES IN EXCESS OF
OTHER ASSETS (1.2%)................... (1,002,898)
-----------
NET ASSETS 100.0%....................... $82,101,227
-----------
</TABLE>

(a) Non-income producing security as this stock currently does not declare
dividends.
ADR -- American Depository Receipt

See Notes to Financial Statements

16
<PAGE> 18

EMERGING GROWTH PORTFOLIO STATEMENT OF ASSETS AND LIABILITIES

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Total Investments (Cost $64,300,918)........................ $83,104,125
Cash........................................................ 7,491
Receivables:
Investments Sold.......................................... 961,845
Portfolio Shares Sold..................................... 234,985
Dividends................................................. 11,889
Unamortized Organizational Costs............................ 1,370
Other Assets................................................ 3,013
-----------
Total Assets.......................................... 84,324,718
-----------
LIABILITIES:
Payables:
Investments Purchased..................................... 2,102,994
Investment Advisory Fee................................... 38,911
Portfolio Shares Repurchased.............................. 3,545
Distributor and Affiliates................................ 3,039
Trustees' Deferred Compensation and Retirement Plans........ 38,461
Accrued Expenses............................................ 36,541
-----------
Total Liabilities..................................... 2,223,491
-----------
NET ASSETS.................................................. $82,101,227
===========
NET ASSETS CONSIST OF:
Capital (Par value of $.01 per share with an unlimited
number of shares authorized).............................. $62,858,176
Net Unrealized Appreciation................................. 18,803,207
Accumulated Net Realized Gain............................... 542,078
Accumulated Net Investment Loss............................. (102,234)
-----------
NET ASSETS.................................................. $82,101,227
===========
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER
SHARE
(Based on net assets of $82,101,227 and 2,975,618 shares
of beneficial interest issued and outstanding)............ $ 27.59
===========
</TABLE>

See Notes to Financial Statements

17
<PAGE> 19

EMERGING GROWTH PORTFOLIO STATEMENT OF OPERATIONS

For the Six Months Ended June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest.................................................... $ 119,982
Dividends................................................... 39,378
-----------
Total Income............................................ 159,360
-----------
EXPENSES:
Investment Advisory Fee..................................... 191,412
Custody..................................................... 22,021
Accounting.................................................. 13,389
Trustees' Fees and Related Expenses......................... 12,105
Amortization of Organizational Costs........................ 677
Legal....................................................... 559
Other....................................................... 31,107
-----------
Total Expenses.......................................... 271,270
Investment Advisory Fee Reduction....................... 37,251
Less Credits Earned on Overnight Cash Balances.......... 181
-----------
Net Expenses............................................ 233,838
-----------
NET INVESTMENT LOSS......................................... $ (74,478)
===========
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Gain........................................... $ 2,234,166
-----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 10,107,012
End of the Period......................................... 18,803,207
-----------
Net Unrealized Appreciation During the Period............... 8,696,195
-----------
NET REALIZED AND UNREALIZED GAIN............................ $10,930,361
===========
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $10,855,883
===========
</TABLE>

See Notes to Financial Statements

18
<PAGE> 20

EMERGING GROWTH PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS

For the Six Months Ended June 30, 1999 and
the Year Ended December 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 1999 December 31, 1998
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Loss......................................... $ (74,478) $ (42,769)
Net Realized Gain/Loss...................................... 2,234,166 (1,437,065)
Net Unrealized Appreciation During the Period............... 8,696,195 8,165,916
----------- -----------
Change in Net Assets from Operations........................ 10,855,883 6,686,082
Distributions in Excess of Net Investment Income............ -0- (4,851)
----------- -----------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES......... 10,855,883 6,681,231
----------- -----------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold................................... 47,381,157 25,418,092
Net Asset Value of Shares Issued Through Dividend
Reinvestment.............................................. -0- 4,851
Cost of Shares Repurchased.................................. (9,555,853) (9,175,988)
----------- -----------
NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS.......... 37,825,304 16,246,955
----------- -----------
TOTAL INCREASE IN NET ASSETS................................ 48,681,187 22,928,186
NET ASSETS:
Beginning of the Period..................................... 33,420,040 10,491,854
----------- -----------
End of the Period (Including accumulated net investment loss
of $102,234 and $27,756, respectively).................... $82,101,227 $33,420,040
=========== ===========
</TABLE>

See Notes to Financial Statements

19
<PAGE> 21

EMERGING GROWTH PORTFOLIO FINANCIAL HIGHLIGHTS

The following schedule presents financial highlights for one share of
the Portfolio outstanding throughout the periods indicated (Unaudited).
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
July 3, 1995
(Commencement
Year Ended December 31, of Investment
Six Months Ended ----------------------------- Operations) to
June 30, 1999 1998 1997 1996 December 31, 1995
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of the Period..... $22.615 $16.450 $13.660 $11.72 $ 10.00
------- ------- ------- ------- -------
Net Investment Loss.......................... (.016) (.014) (.007) (.016) (.08)
Net Realized and Unrealized Gain............. 4.992 6.186 2.797 1.956 1.80
------- ------- ------- ------- -------
Total from Investment Operations............. 4.976 6.172 2.790 1.940 1.72
Less Distributions in Excess of Net
Investment Income.......................... -0- .007 -0- -0- -0-
------- ------- ------- ------- -------
Net Asset Value, End of the Period........... $27.591 $22.615 $16.450 $13.660 $ 11.72
======= ======= ======= ======= =======
Total Return................................. 21.97%** 37.56% 20.42% 16.55% 17.20%**
Net Assets at End of the Period (In
millions).................................. $82.1 $33.4 $10.5 $5.2 $ 2.3
Ratio of Expenses to Average Net Assets*..... .85% .85% .85% .85% 2.50%
Ratio of Net Investment Loss to Average Net
Assets*.................................... (.27%) (.23%) (.11%) (.17%) (1.45%)
Portfolio Turnover........................... 66%** 91% 116% 102% 41%**
* If certain expenses had not been assumed
by Van Kampen, Total Return would have
been lower and the ratios would have been
as follows:
Ratio of Expenses to Average Net Assets...... .99% 1.23% 2.14% 3.28% 5.40%
Ratio of Net Investment Loss to Average Net
Assets..................................... (.41%) (.61%) (1.40%) (2.60%) (4.35%)
</TABLE>

** Non-Annualized

See Notes to Financial Statements

20
<PAGE> 22

PERFORMANCE RESULTS FOR THE PERIOD ENDED JUNE 30, 1999

VAN KAMPEN LIFE INVESTMENT TRUST

ENTERPRISE PORTFOLIO

<TABLE>
<S> <C>
TOTAL RETURNS
Six-month total return based on NAV(1)...................... 6.66%
One-year total return based on NAV(1)....................... 13.35%
Five-year average annual total return based on NAV(1)....... 24.65%
Ten-year average annual total return based on NAV(1)........ 17.07%
Life-of-Portfolio average annual total return based on
NAV(1).................................................... 13.62%
Commencement date........................................... 04/07/86
</TABLE>

(1)Total return based on net asset value (NAV) assumes an investment at the
beginning of the period indicated, reinvestment of all distributions for the
period, and sale of all shares at the end of the period, all at NAV.

Market forecasts provided in this report may not necessarily come to pass.

The Portfolio being offered is through a variable annuity contract.

21
<PAGE> 23

PORTFOLIO MANAGEMENT REVIEW

ENTERPRISE PORTFOLIO

The following is an interview with the portfolio management team of the Van
Kampen Life Investment Trust--Enterprise Portfolio. The team includes Jeff D.
New, senior portfolio manager; Michael Davis and Mary Jayne Maly, portfolio
managers; and Stephen L. Boyd, chief investment officer for equity investments.

Q WHAT MARKET FACTORS AFFECTED THE PORTFOLIO DURING THE REPORTING PERIOD?

Q SO HOW DID YOU MANAGE THE PORTFOLIO IN RESPONSE TO THESE EVENTS?

A As we have stressed in prior reports, our investment discipline leads us
to purchase stocks that meet our criteria of positive future fundamentals
and attractive current prices. By our definition, a company with positive
future fundamentals possesses at least one of the following traits: consistent
earnings growth; accelerating earnings growth; better-than-expected
fundamentals; or an underlying change in a company, industry, or regulatory
environment. We evaluate stocks from the "bottom up"--in other words, on a
company by company basis. Because our investment approach has served the
Portfolio well through a broad range of economic conditions, we weren't tempted
to change our strategy during the past six months.
That said, we did seek to adjust to changing market conditions in the last
several months of the reporting period. For example, we attempted to capitalize
on the recent upturn among cyclical stocks by adding several that clearly met
our investment discipline. This helped moderate the Portfolio's performance
during a difficult period for growth stocks.

Q WHAT WERE SOME OF THE PORTFOLIO'S BEST PERFORMERS DURING THE PERIOD, AND
HOW DID THEY AFFECT TOTAL RETURN?

A We were pleased with our investments in semiconductor companies--their
stocks are sensitive to global economic conditions, which have been
relatively strong in recent months. The Portfolio's total return benefited
greatly from our owning these stocks--especially Texas Instruments, a
semiconductor maker that develops a key component in cellular phones. Other
semiconductor stocks whose performance boosted the Portfolio's performance were
Intel, a computer-chip manufacturer; Applied Materials, which sells equipment
used to manufacture semiconductors; and STMicroelectronics, a maker of
integrated circuits, devices used in a wide variety of microelectronic
applications. Another stock that helped the Portfolio's return was Univision,
the leading Spanish-language television broadcaster in the United States. This
network, which reaches 92 percent of the U.S. Hispanic market, saw its stock
price appreciate 81 percent during the reporting period. One of our best
investments was Tricon Global, which operates restaurants under the Pizza Hut,
Taco Bell, and Kentucky Fried Chicken brands.

Q WHAT WAS SO SUCCESSFUL ABOUT YOUR INVESTMENT IN TRICON GLOBAL?

A We purchased this stock in late 1998 because we were optimistic about
management's plan to improve operations, sell nonproductive stores back to
franchisees, and use proceeds to repay debt. As we expected, earnings
increased dramatically as a result of this plan, and our stock appreciated
nearly 56 percent through late April, when we sold our position. We chose to
sell when the company failed to exceed earnings expectations in April--this
failure violated our requirement to own only companies with accelerated earnings
growth. This turned out to be a very

22
<PAGE> 24

good decision, as the stock began a steady decline thereafter. The Portfolio's
return, therefore, benefited directly from the stock's rapid appreciation, and
indirectly from our timely sale.

Please keep in mind that not all stocks in the Portfolio performed as well
as Tricon Global or the others mentioned above, nor is there any guarantee that
these stocks will perform as well in the future.

Q DID ANY STOCKS DISAPPOINT YOU?

A Yes, we were disappointed in our holdings in the areas of health care and
grocery stores. A number of stocks in these industries underperformed and
hurt the Portfolio's return.
Drug companies in particular were poor performers. Our holdings included
industry leaders Schering-Plough and Pfizer, as well as smaller companies such
as Watson Pharmaceuticals and Lincare. Pharmaceutical companies, which typically
aren't affected by changes in the economy, fared very well in 1998 as investors
sought refuge from market volatility. These stocks have languished, however, as
we near the 2000 elections, which could precipitate additional health-care
regulations. This belief has placed a cloud over drug company stocks, although
we still think the long-term prospects for this sector are excellent.
Grocery store stocks also had a negative impact on the Portfolio's return.
These included Safeway and Kroger, two of our longtime holdings. Although these
companies still appear to be executing their business plans well, their stock
prices have suffered in recent months--reflecting concern that acquisitions in
this area are slowing.

Q HOW DID THE PORTFOLIO PERFORM?

A Strong stock selection from a variety of sectors partially offset the
downward pressure on growth stocks during the period. The Portfolio
achieved a six-month total return of 6.66 percent(1) as of June 30, 1999.
By comparison, the Standard & Poor's 500 Index returned 12.36 percent, and
the Lipper Growth Fund Index, which more closely resembles the Portfolio,
returned 11.89 percent. The S&P 500 Index is a broad-based, unmanaged index that
reflects the general performance of the stock market, and the Lipper Growth Fund
Index reflects the average performance of the 30 largest growth funds. Past
performance does not guarantee future results.
These indices are statistical composites that don't include any commissions
or sales charges that would be paid by an investor purchasing the securities
represented by these indices. Please refer to the footnotes and chart on page 21
for additional Portfolio performance results.

Q WHAT DO YOU SEE AHEAD FOR THE PORTFOLIO?

A We are cautiously optimistic that corporate earnings will continue to
improve and that many international economies are beginning to emerge from
last year's depths. Despite subtle indications that prices may be creeping
upwards, inflation is still low and economic growth is strong, which is a
promising sign for the stock market.
Our major concern is that stock-market valuations remain high by relative
and historical measures. Maintaining those levels depends on more good news with
respect to inflation and earnings. As long as both remain favorable, we expect
the market--and the Portfolio--to still perform well. However, high valuations
leave stocks vulnerable if economic conditions change. We will continue to
monitor the situation as we stick to the discipline that has worked well for us
in the past.

Jeff D. New
Senior Portfolio Manager
Enterprise Portfolio

Mary Jayne Maly
Portfolio Manager
Enterprise Portfolio

Michael Davis
Portfolio Manager
Enterprise Portfolio

Stephen L. Boyd
Chief Investment Officer
Equity Investments

23
<PAGE> 25

ENTERPRISE PORTFOLIO PORTFOLIO OF INVESTMENTS

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Description Shares Market Value
- -------------------------------------------------------
<S> <C> <C>
COMMON STOCKS 94.6%
CONSUMER DISTRIBUTION 11.7%
AnnTaylor Stores Corp. (a)....... 20,000 $ 900,000
Best Buy Co., Inc. (a)........... 18,000 1,215,000
Circuit City Stores-Circuit City
Group.......................... 8,000 744,000
Consolidated Stores Corp. (a).... 28,000 756,000
Costco Cos., Inc. (a)............ 12,400 992,775
Dayton Hudson Corp. ............. 27,500 1,787,500
Family Dollar Stores, Inc........ 36,700 880,800
Kroger Co. (a)................... 44,000 1,229,250
Lexmark International Group,
Inc., Class A (a).............. 32,000 2,114,000
Safeway, Inc. (a)................ 43,600 2,158,200
Tandy Corp....................... 20,000 977,500
TJX Cos., Inc.................... 58,200 1,938,787
Wal-Mart Stores, Inc............. 15,200 733,400
------------
16,427,212
------------
CONSUMER DURABLES 1.6%
Harley-Davidson, Inc. ........... 13,000 706,875
Hasbro, Inc. .................... 35,000 977,812
Maytag Corp. .................... 9,000 627,188
------------
2,311,875
------------
CONSUMER NON-DURABLES 6.7%
Abercrombie & Fitch Co., Class A
(a)............................ 16,000 768,000
Anheuser-Busch Cos., Inc......... 17,000 1,205,937
Jones Apparel Group, Inc. (a).... 20,000 686,250
Kimberly Clark Corp.............. 12,000 684,000
Nike, Inc., Class B.............. 33,000 2,089,312
Pepsi Bottling Group, Inc. ...... 31,000 714,937
Quaker Oats Co................... 20,000 1,327,500
Seagram Co. Ltd.................. 13,700 690,138
Tommy Hilfiger Corp. (a)......... 17,000 1,249,500
------------
9,415,574
------------
CONSUMER SERVICES 8.2%
Brinker International, Inc.
(a)............................ 24,800 674,250
CBS Corp. (a).................... 36,600 1,589,813
Chancellor Media Corp., Class A
(a)............................ 14,600 804,825
Clear Channel Communications,
Inc. (a)....................... 17,243 1,188,689
Comcast Corp., Class A........... 46,000 1,768,125
Harrah's Entertainment, Inc.
(a)............................ 34,000 748,000
Omnicom Group, Inc............... 25,500 2,040,000
Time Warner, Inc................. 20,600 1,514,100
Univision Communications, Inc.,
Class A (a).................... 18,000 1,188,000
------------
11,515,802
------------
ENERGY 2.5%
Baker Hughes, Inc................ 45,000 1,507,500
Enron Corp....................... 13,100 1,070,925
Halliburton Co................... 7,000 316,750
Williams Cos., Inc............... 15,000 638,438
------------
3,533,613
------------
FINANCE 9.6%
AFLAC, Inc....................... 20,000 957,500
American International Group,
Inc............................ 11,000 1,287,688
</TABLE>

<TABLE>
<CAPTION>
Description Shares Market Value
- -------------------------------------------------------
<S> <C> <C>
FINANCE (CONTINUED)
Bank One Corp.................... 12,000 $ 714,750
Capital One Financial Corp....... 12,000 668,250
Chase Manhattan Corp............. 8,000 693,000
Citigroup, Inc................... 34,875 1,656,562
Equitable Cos., Inc.............. 10,000 670,000
Federal Home Loan Mortgage
Corp........................... 13,000 754,000
Firstar Corp..................... 45,000 1,260,000
Golden State Bancorp, Inc. (a)... 37,000 814,000
Lincoln National Corp............ 14,000 732,375
Marsh & McLennan Cos., Inc....... 18,000 1,359,000
Providian Financial Corp......... 7,000 654,500
State Street Corp................ 15,000 1,280,625
------------
13,502,250
------------
HEALTHCARE 12.6%
Abbott Laboratories, Inc......... 9,900 450,450
Aetna, Inc. ..................... 11,000 983,813
Allergan, Inc.................... 4,000 444,000
American Home Products Corp...... 34,000 1,955,000
Amgen, Inc. (a).................. 24,000 1,461,000
Baxter International, Inc........ 10,100 612,313
Biogen, Inc. (a)................. 18,000 1,157,625
Bristol Myers Squibb Co.......... 35,400 2,493,487
Guidant Corp..................... 20,800 1,069,900
Johnson & Johnson, Inc........... 7,000 686,000
Lilly Eli & Co................... 9,000 644,625
Lincare Holdings, Inc. (a)....... 30,200 755,000
Mylan Laboratories, Inc.......... 22,800 604,200
Pfizer, Inc...................... 5,200 570,700
Pharmacia & Upjohn, Inc.......... 6,000 340,875
Schering-Plough Corp............. 44,000 2,332,000
Watson Pharmaceuticals, Inc.
(a)............................ 7,400 259,463
Wellpoint Health Networks, Inc.,
Class A (a).................... 11,100 942,112
------------
17,762,563
------------
PRODUCER MANUFACTURING 7.8%
Corning, Inc..................... 22,000 1,542,750
Honeywell, Inc................... 8,000 927,000
Ingersoll-Rand Co................ 13,000 840,125
Navistar International Corp.
(a)............................ 22,000 1,100,000
Republic Services, Inc., Class A
(a)............................ 59,100 1,462,725
Tyco International Ltd........... 30,100 2,851,975
United Technologies Corp......... 14,800 1,060,975
Waste Management, Inc. .......... 23,500 1,263,125
------------
11,048,675
------------
RAW MATERIALS/PROCESSING INDUSTRIES 1.8%
Boise Cascade Corp............... 32,000 1,372,000
Temple-Inland, Inc............... 18,000 1,228,500
------------
2,600,500
------------
TECHNOLOGY 26.3%
Altera Corp. (a)................. 15,000 552,188
America Online, Inc. (a)......... 24,000 2,652,000
Applied Materials, Inc. (a)...... 12,000 886,500
</TABLE>

See Notes to Financial Statements

24
<PAGE> 26
ENTERPRISE PORTFOLIO PORTFOLIO OF INVESTMENTS (CONTINUED)

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Description Shares Market Value
- -------------------------------------------------------
<S> <C> <C>
TECHNOLOGY (CONTINUED)
BMC Software, Inc. (a)........... 21,100 $ 1,139,400
Cisco Systems, Inc. (a).......... 63,050 4,054,903
Citrix Systems, Inc. (a)......... 21,900 1,237,350
Compuware Corp. (a).............. 20,000 636,250
Comverse Technology, Inc. (a).... 14,100 1,064,550
EMC Corp. (a).................... 32,200 1,771,000
First Data Corp.................. 12,000 587,250
General Instrument Corp. (a)..... 11,000 467,500
Hewlett-Packard Co............... 9,000 904,500
Intel Corp....................... 24,000 1,428,000
International Business Machines
Corp........................... 17,600 2,274,800
Linear Technology Corp........... 6,000 403,500
LSI Logic Corp. (a).............. 14,000 645,750
Lucent Technologies, Inc......... 45,575 3,073,464
Microsoft Corp. (a).............. 60,200 5,429,288
Nokia Corp. -- ADR (Finland)..... 18,600 1,703,062
Novell, Inc. (a)................. 19,000 503,500
Oracle Corp. (a)................. 30,000 1,113,750
Sanmina Corp. (a)................ 13,000 986,375
STMicroelectronics NV -- ADR
(Netherlands).................. 8,000 555,000
Texas Instruments, Inc........... 10,000 1,450,000
Unisys Corp. (a)................. 12,000 467,250
Waters Corp. (a)................. 8,000 425,000
Xilinx, Inc. (a)................. 12,000 687,000
------------
37,099,130
------------
</TABLE>

<TABLE>
<CAPTION>
Description Shares Market Value
- -------------------------------------------------------
<S> <C> <C>
TRANSPORTATION 1.1%
Delta Air Lines, Inc............. 11,000 $ 633,875
Kansas City Southern Industries,
Inc............................ 14,000 893,375
------------
1,527,250
------------
UTILITIES 4.7%
ALLTEL Corp...................... 26,000 1,859,000
Frontier Corp.................... 18,000 1,062,000
Level 3 Communications, Inc.
(a)............................ 17,500 1,051,094
MCI Worldcom, Inc. (a)........... 23,000 1,979,437
Sprint Corp. (PCS Group)......... 14,000 739,375
------------
6,690,906
------------
TOTAL LONG-TERM INVESTMENTS 94.6%
(Cost $91,719,346)................... 133,435,350
REPURCHASE AGREEMENT 5.9%
SBC Warburg ($8,265,000 par
collateralized by U.S. Government
obligations in a pooled cash account,
dated 06/30/99, to be sold on 07/01/99
at $8,266,113) (Cost $8,265,000)....... 8,265,000
------------
TOTAL INVESTMENTS 100.5%
(Cost $99,984,346)................... 141,700,350
LIABILITIES IN EXCESS OF OTHER
ASSETS (0.5%)......................... (704,860)
------------
NET ASSETS 100.0%....................... $140,995,490
============
</TABLE>

(a) Non-income producing security as this stock currently does not declare
dividends.
ADR -- American Depository Receipt

See Notes to Financial Statements

25
<PAGE> 27

ENTERPRISE PORTFOLIO STATEMENT OF ASSETS AND LIABILITIES

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Total Investments (Cost $99,984,346)........................ $141,700,350
Receivables:
Investments Sold.......................................... 4,140,238
Dividends................................................. 68,026
Portfolio Shares Sold..................................... 18,001
Other....................................................... 53,481
------------
Total Assets.......................................... 145,980,096
------------
LIABILITIES:
Payables:
Investments Purchased..................................... 4,752,247
Investment Advisory Fee................................... 50,742
Custodian Bank............................................ 13,546
Distributor and Affiliates................................ 5,800
Portfolio Shares Repurchased.............................. 4,585
Trustees' Deferred Compensation and Retirement Plans........ 124,618
Accrued Expenses............................................ 33,068
------------
Total Liabilities..................................... 4,984,606
------------
NET ASSETS.................................................. $140,995,490
============
NET ASSETS CONSIST OF:
Capital (Par value of $.01 per share with an unlimited
number of shares authorized).............................. $ 88,967,415
Net Unrealized Appreciation................................. 41,716,004
Accumulated Net Realized Gain............................... 10,244,835
Accumulated Undistributed Net Investment Income............. 67,236
------------
NET ASSETS.................................................. $140,995,490
============
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER
SHARE
(Based on net assets of $140,995,490 and 6,368,852 shares
of beneficial interest issued and outstanding)............ $ 22.14
============
</TABLE>

See Notes to Financial Statements

26
<PAGE> 28

ENTERPRISE PORTFOLIO STATEMENT OF OPERATIONS

For the Six Months Ended June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends................................................... $ 402,221
Interest.................................................... 122,293
-----------
Total Income............................................ 524,514
-----------
EXPENSES:
Investment Advisory Fee..................................... 323,141
Custody..................................................... 20,975
Accounting.................................................. 20,453
Trustees' Fees and Related Expenses......................... 19,019
Legal....................................................... 2,172
Other....................................................... 30,302
-----------
Total Expenses.......................................... 416,062
Investment Advisory Fee Reduction....................... 25,861
Less Credits Earned on Overnight Cash Balances.......... 2,034
-----------
Net Expenses............................................ 388,167
-----------
NET INVESTMENT INCOME....................................... $ 136,347
===========
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Gain........................................... $10,338,185
-----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 43,715,944
End of the Period......................................... 41,716,004
-----------
Net Unrealized Depreciation During the Period............... (1,999,940)
-----------
NET REALIZED AND UNREALIZED GAIN............................ $ 8,338,245
===========
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $ 8,474,592
===========
</TABLE>

See Notes to Financial Statements

27
<PAGE> 29

ENTERPRISE PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS

For the Six Months Ended June 30, 1999
and the Year Ended December 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 1999 December 31, 1998
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income....................................... $ 136,347 $ 379,529
Net Realized Gain........................................... 10,338,185 9,559,452
Net Unrealized Appreciation/Depreciation During the
Period.................................................... (1,999,940) 14,397,910
----------- -----------
Change in Net Assets from Operations........................ 8,474,592 24,336,891
----------- -----------
Distributions from Net Investment Income.................... (393,720) (92,265)
Distributions from Net Realized Gain........................ (9,274,929) (1,126,323)
----------- -----------
Total Distributions......................................... (9,668,649) (1,218,588)
----------- -----------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES......... (1,194,057) 23,118,303
----------- -----------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold................................... 21,694,487 23,512,376
Net Asset Value of Shares Issued Through Dividend
Reinvestment.............................................. 9,668,650 1,218,588
Cost of Shares Repurchased.................................. (12,742,813) (22,994,120)
----------- -----------
NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS.......... 18,620,324 1,736,844
----------- -----------
TOTAL INCREASE IN NET ASSETS................................ 17,426,267 24,855,147
NET ASSETS:
Beginning of the Period..................................... 123,569,223 98,714,076
----------- -----------
End of the Period (Including accumulated undistributed net
investment income of $67,236 and $324,609,
respectively)............................................. $140,995,490 $123,569,223
============ ============
</TABLE>

See Notes to Financial Statements

28
<PAGE> 30

ENTERPRISE PORTFOLIO FINANCIAL HIGHLIGHTS

The following schedule presents financial highlights for one share of the
Portfolio
outstanding throughout the periods indicated. (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Year Ended December 31,
Six Months Ended -------------------------------------
June 30, 1999 1998 1997 1996 1995
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of the Period............ $22.390 $18.106 $16.262 $ 14.69 $ 12.39
------- ------- ------- ------- -------
Net Investment Income............................. .022 .069 .091 .113 .32
Net Realized and Unrealized Gain/Loss............. 1.445 4.441 4.734 3.417 4.22
------- ------- ------- ------- -------
Total from Investment Operations.................... 1.467 4.510 4.825 3.530 4.54
------- ------- ------- ------- -------
Less:
Distributions from Net Investment Income.......... .070 .017 .096 .109 .3175
Distributions from Net Realized Gain.............. 1.649 .209 2.885 1.849 1.9225
------- ------- ------- ------- -------
Total Distributions................................. 1.719 .226 2.981 1.958 2.24
------- ------- ------- ------- -------
Net Asset Value, End of the Period.................. $22.138 $22.390 $18.106 $16.262 $ 14.69
======= ======= ======= ======= =======
Total Return*....................................... 6.66%** 25.00% 30.66% 24.80% 36.98%
Net Assets at End of the Period (In millions)....... $141.0 $123.6 $98.7 $84.8 $76.0
Ratio of Expenses to Average Net Assets*............ .60% .60% .60% .60% .60%
Ratio of Net Investment Income to Average Net
Assets*........................................... .21% .35% .47% .68% 2.06%
Portfolio Turnover.................................. 65%** 82% 82% 152% 145%
* If certain expenses had not been assumed by Van
Kampen, Total Return would have been lower and
the ratios would have been as follows:
Ratio of Expenses to Average Net Assets............. .64% .64% .66% .75% .68%
Ratio of Net Investment Income to Average Net
Assets............................................ .17% .31% .41% .53% 1.98%
</TABLE>

** Non-Annualized

See Notes to Financial Statements

29
<PAGE> 31

PERFORMANCE RESULTS FOR THE PERIOD ENDED JUNE 30, 1999

VAN KAMPEN LIFE INVESTMENT TRUST

GROWTH AND INCOME PORTFOLIO

<TABLE>
<S> <C>
TOTAL RETURNS
Six-month total return based on NAV(1)...................... 10.20%
One-year total return based on NAV(1)....................... 14.22%
Life-of-Portfolio average annual total return based on
NAV(1).................................................... 21.36%
Commencement date........................................... 12/23/96
</TABLE>

(1)Total return based on net asset value (NAV) assumes an investment at the
beginning of the period indicated, reinvestment of all distributions for the
period, and sale of all shares at the end of the period, all at NAV.

Market forecasts provided in this report may not necessarily come to pass.

The Portfolio being offered is through a variable annuity contract.

30
<PAGE> 32

PORTFOLIO MANAGEMENT REVIEW

GROWTH AND INCOME PORTFOLIO

The following is an interview with the portfolio management team of Van Kampen
Life Investment Trust--Growth and Income Portfolio. The team is led by James A.
Gilligan, senior portfolio manager, Scott Carroll and James Roeder, portfolio
managers; and Stephen L. Boyd, chief investment officer for equity investments.

Q HOW WOULD YOU DESCRIBE THE MARKET ENVIRONMENT IN WHICH THE PORTFOLIO
OPERATED DURING THIS SIX-MONTH PERIOD?

A It's been an explosive market. As global growth strengthened, investors
gained confidence in the domestic economy. Fueled by new money, the stock
market soared to record highs, breaking through the 10,000 point ceiling
and pushing past 11,000. However, investors found cause for concern when
interest rates began to creep higher in the second quarter of 1999. These fears
were only heightened when the Fed announced its bias toward tightening
short-term interest rates, which increased market volatility. Calm was restored
in the final hours of the reporting period, as the Fed raised rates by 0.25
percent but indicated that additional increases were unnecessary due to tame
inflation and healthy economic growth.
In the first quarter, the booming stock market created a very challenging
environment for a value-oriented portfolio such as this one, as growth-oriented
investments stole the spotlight. In April, however, investors took note of the
rising economy and turned their attention toward cyclical stocks. Cyclical
stocks tend to perform well in a strong economic environment, and this group
began to outperform large-capitalization growth stocks for the first time in
nearly three years. Because cyclical stocks had been undervalued relative to the
broad market, this change in investor sentiment provided a favorable environment
for the Portfolio.

Q BASED ON THIS ASSESSMENT, HOW AND WHERE DID YOU FIND INVESTMENTS?

A In our search for good value investments, we continued to focus on
companies that we believe are underappreciated by the market but
demonstrate a catalyst for positive change. We might examine a troubled
company that's recently come under new management, or study a sector that has
fallen out of favor but exhibits solid fundamentals for recovery.
For example, in your last report, we described the troubles that had
befallen many financial companies because of economic turmoil overseas. As many
global economies began to recover, we revisited the financial sector during the
past six months and selected several large financial companies that we believed
were in good positions to take advantage of this recovery. We adjusted our
positions in The Equitable, Citigroup, and Chase Manhattan because of potential
volatility, and added a position in Bank of America, which we felt was less
volatile than some of the bigger money-center banks. We also added two new
financial companies to the portfolio--Lincoln National and Marsh &
McLennan--both of which have reasonable valuations and have recently appointed
new chief executive officers.

Q IN WHAT OTHER AREAS WERE YOU SUCCESSFUL IN YOUR SEARCH FOR VALUE?

A We looked for turnaround stories in the technology sector, which
demonstrated the capacity for a strong rebound during the period. We were
especially interested in some of the technology areas that weren't part of
last year's market surge. For example, our position in Adobe was one of the best
performers. We also invested successfully in Motorola and QualComm, although we
eliminated the latter when we believed the stock had reached its price target.
Computer hardware giant IBM continues to be one of the portfolio's largest
positions, although our holding in this company fluctuated based on some
variable quarterly earnings reports.
In the consumer nondurables sector, we focused our attention on a relatively
new area to the portfolio: beverage companies. These included Anheuser-Busch,
Pepsi Bottling Company, and Whitman, another bottling company. Although we
occasionally moderated our positions in these holdings during the period, we
were attracted to the high volume and attractive pricing of this industry.
Although we might say the same for Philip Morris, which used to be one of our

31
<PAGE> 33

largest holdings, we reduced that position dramatically. With continuing clouds
of litigation hanging over the company, we were unable to identify a catalyst
for improvement in the stock's price.

Q WERE THERE ANY OTHER DISAPPOINTMENTS IN THE PORTFOLIO?

A One of our largest sector exposures, health care--in particular,
pharmaceutical companies--fell out of favor with investors during this
six-month period. As a result, we decreased our exposure to pharmaceutical
companies and focused on stocks that we believe are best positioned to take
advantage of a recovery in the health-care sector. Because HMOs (health
maintenance organizations) began to see improved performance, the Portfolio's
return benefited from a significant position in United HealthCare, as well as
holdings in Oxford Health Plans and Aetna.
We also continued to analyze health-care service companies--such as nursing
home provider HCR Manor Care, in which we established a small position. These
companies have come under significant financial pressure because of changes in
the way they are reimbursed for Medicare payments. However, we are optimistic
about their potential for recovery, as they serve a very important role in the
industry. We expect to add to this area if we find additional value
opportunities.

Q TAKING EVERYTHING INTO CONSIDERATION, HOW DID THE PORTFOLIO PERFORM DURING
THE REPORTING PERIOD?

A Although some of our holdings in the health-care sector hurt the
Portfolio's return, we also enjoyed some impressive gains in the financial
and technology sectors. As a result, the Portfolio achieved a total return
of 10.20 percent(1) for the six-month period ended June 30, 1999. By
comparison, the Standard & Poor's 500 Index returned 12.36 percent for the same
period. The S&P 500 Index is a broad-based index that reflects the general
performance of the stock market; this statistical composite does not reflect any
commissions or sales charges that would be paid by an investor purchasing the
securities it represents. Of course, past performance is no guarantee of
comparable future results. Please refer to the chart and footnotes on page 30
for additional Portfolio performance results.

Q WHAT DO YOU SEE HAPPENING IN THE MARKET OVER THE COMING MONTHS?

A We take some reassurance in the fact that inflation is still low and the
economy remains strong. Although these factors support a healthy stock
market, the slow recovery of the bond market gives us reason to maintain a
cautious perspective. We've come to expect market volatility regardless of
strong economic fundamentals, if only because the Dow's current level is so
high. We hope that volatility will initiate investors' return to a broader range
of stocks within the market. In this environment, our bottom-up analysis and
disciplined value criteria may help us uncover fresh investment opportunities.
We'll continue to emphasize securities that we feel exhibit potential for
improvement with limited downside risk.

James A. Gilligan
Senior Portfolio Manager
Growth and Income Portfolio

James Roeder
Portfolio Manager
Growth and Income Portfolio

Scott Carroll
Portfolio Manager
Growth and Income Portfolio

Stephen L. Boyd
Chief Investment Officer
Equity Investments

32
<PAGE> 34

GROWTH AND INCOME PORTFOLIO PORTFOLIO OF INVESTMENTS

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Description Shares Market Value
- ---------------------------------------------------------
<S> <C> <C>
COMMON STOCKS 92.1%
CONSUMER DISTRIBUTION 1.9%
Federated Department Stores, Inc.
(a)............................. 9,720 $ 514,553
Gap, Inc.......................... 7,035 354,388
-----------
868,941
-----------
CONSUMER DURABLES 0.7%
Black & Decker Corp............... 4,700 296,687
-----------
CONSUMER NON-DURABLES 10.3%
Anheuser-Busch Cos., Inc.......... 6,400 454,000
Benckiser NV, Class B -- ADR
(Netherlands) (a)............... 4,200 225,225
Colgate - Palmolive Co............ 7,060 697,175
Hershey Foods Corp................ 7,450 442,344
Pepsi Bottling Group, Inc......... 12,300 283,669
PepsiCo, Inc...................... 8,400 324,975
Philip Morris Cos., Inc........... 12,530 503,549
Ralston Purina Group.............. 26,520 807,202
Seagram Co. Ltd................... 5,700 287,138
Unilever NV -- ADR
(Netherlands)................... 4,750 331,312
Whitman Corp...................... 17,580 300,240
-----------
4,656,829
-----------
CONSUMER SERVICES 1.3%
H & R Block, Inc.................. 8,800 440,000
International Game Technology..... 8,600 159,100
-----------
599,100
-----------
ENERGY 5.7%
Coastal Corp...................... 13,970 558,800
El Paso Energy Corp............... 21,690 763,217
Mobil Corp........................ 7,600 752,400
Texaco, Inc....................... 8,000 500,000
-----------
2,574,417
-----------
FINANCE 14.3%
American General Corp............. 11,550 870,581
Bank of Tokyo-Mitsubishi -- ADR
(Japan)......................... 38,210 556,433
BankAmerica Corp.................. 6,400 469,200
Chase Manhattan Corp.............. 4,600 398,475
Citigroup, Inc.................... 8,500 403,750
Equitable Cos., Inc............... 11,100 743,700
Fleet Financial Group, Inc........ 17,540 778,338
Lincoln National Corp............. 6,800 355,725
Marsh & McLennan Cos., Inc. ...... 5,800 437,900
PNC Bank Corp..................... 12,070 695,534
Radian Group Inc.................. 700 34,169
Washington Mutual, Inc............ 11,006 389,337
XL Capital Ltd., Class A -- ADR
(Bermuda)....................... 5,390 304,535
-----------
6,437,677
-----------
HEALTHCARE 13.0%
Aetna, Inc........................ 4,600 411,412
American Home Products Corp....... 15,010 863,075
Beckman Coulter, Inc.............. 7,100 345,238
Bristol-Myers Squibb Co........... 3,300 232,444
Columbia/HCA Healthcare Corp...... 15,000 342,188
HCR Manor Care, Inc. (a).......... 9,300 224,944
</TABLE>

<TABLE>
<CAPTION>
Description Shares Market Value
- ---------------------------------------------------------
<S> <C> <C>
HEALTHCARE (CONTINUED)
IMS Health, Inc................... 13,200 $ 412,500
Mylan Laboratories, Inc........... 25,500 675,750
Oxford Health Plans, Inc. (a)..... 16,400 255,225
Pharmacia & Upjohn, Inc........... 10,200 579,487
Rhone-Poulenc, SA -- ADR (France)
Warrants (expiring 11/05/01).... 2,079 5,977
Teva Pharmaceutical Industries
Ltd.--ADR (Israel).............. 9,370 459,130
Triad Hospitals, Inc. (a)......... 642 8,667
United HealthCare Corp. (a)....... 7,500 469,687
Warner-Lambert Co................. 8,600 596,625
-----------
5,882,349
-----------
PRODUCER MANUFACTURING 6.4%
AlliedSignal, Inc................. 6,720 423,360
Grainger Inc...................... 2,300 123,769
Ingersoll-Rand Co................. 15,600 1,008,150
Koninklijke Philips Electronics NV
-- ADR (Netherlands)............ 5,490 553,804
Minnesota Mining & Mfg Co......... 6,100 530,319
Waste Management, Inc............. 4,606 247,572
-----------
2,886,974
-----------
RAW MATERIALS/PROCESSING INDUSTRIES 4.2%
Boise Cascade Corp................ 9,640 413,315
Crown Cork & Seal Co., Inc........ 1,600 45,600
Imperial Chemical Industries PLC
-- ADR (United Kingdom)......... 8,140 323,565
Monsanto Co....................... 3,900 153,806
Newmont Mining Corp............... 15,700 312,038
Pall Corp......................... 700 15,531
Sherwin-Williams Co............... 15,700 435,675
Union Carbide Corp................ 4,300 209,625
-----------
1,909,155
-----------
TECHNOLOGY 17.1%
Adobe Systems, Inc................ 8,400 690,112
Alcatel SA -- ADR (France)........ 4,200 119,175
Boeing Co......................... 12,200 539,088
Electronic Data Systems Corp...... 10,800 610,875
First Data Corp................... 4,040 197,708
International Business Machines
Corp............................ 8,000 1,034,000
Motorola, Inc..................... 10,540 998,665
Nippon Telegraph & Telephone Corp.
SP -- ADR (Japan)............... 9,000 563,625
Oracle Corp. (a).................. 18,500 686,812
SunGard Data Systems, Inc. (a).... 3,200 110,400
Texas Instruments, Inc............ 6,020 872,900
Xerox Corp........................ 13,980 825,694
Xilinx, Inc. (a).................. 7,800 446,550
-----------
7,695,604
-----------
UTILITIES 17.2%
BEC Energy........................ 17,210 709,912
Consolidated Edison, Inc.......... 12,880 582,820
DQE, Inc.......................... 9,600 385,200
Edison International.............. 17,270 461,972
</TABLE>

See Notes to Financial Statements

33
<PAGE> 35
GROWTH AND INCOME PORTFOLIO PORTFOLIO OF INVESTMENTS (CONTINUED)

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Description Shares Market Value
- ---------------------------------------------------------
<S> <C> <C>
UTILITIES (CONTINUED)
GPU, Inc.......................... 6,600 $ 278,438
GTE Corp.......................... 12,010 909,757
Illinova Corp..................... 22,320 608,220
NCR Corp. (a)..................... 16,400 800,525
Niagara Mohawk Power Co. (a)...... 42,010 674,786
Northeast Utilities (a)........... 47,940 847,939
PECO Energy Co.................... 5,610 234,919
SBC Communications, Inc........... 5,400 313,200
Sprint Corp. (PCS Group).......... 13,240 699,237
U.S. West, Inc.................... 3,930 230,888
-----------
7,737,813
-----------
TOTAL COMMON STOCKS 92.1%................ 41,545,546
CORPORATE BOND OBLIGATION 0.2%
Hewlett Packard Co., LYON, 144A--Private
Placement ($125,000 par, yielding
3.125%, 10/14/17 maturity) (c).......... 79,375
-----------
TOTAL LONG-TERM INVESTMENTS 92.3%
(Cost $34,765,168)...................... 41,624,921
-----------
</TABLE>

<TABLE>
<CAPTION>
Description Market Value
- ---------------------------------------------------------
<S> <C>
SHORT-TERM INVESTMENTS 8.0%
REPURCHASE AGREEMENT 5.8%
Goldman Sachs & Co ($2,620,000 par
collateralized by U.S. Government
obligations in a pooled cash account,
dated 6/30/99, to be sold on 07/01/99 at
$2,620,353) (b)......................... $ 2,620,000
U.S. GOVERNMENT AGENCY 2.2%
Federal Home Loan Mortgage Discount Notes
($1,000,000 par, yielding 4.768%,
07/23/99 maturity) (b).................. 997,116
-----------
TOTAL SHORT-TERM INVESTMENTS
(Cost $3,617,116)....................... 3,617,116
-----------
TOTAL INVESTMENTS 100.3%
(Cost $38,382,284)...................... 45,242,037
LIABILITIES IN EXCESS OF OTHER
ASSETS (0.3%).......................... (146,623)
-----------
NET ASSETS 100.0%........................ $45,095,414
===========
</TABLE>

(a) Non-income producing security as this stock currently does not declare
dividends.

(b) Assets segregated for open futures transactions.

(c) 144A Securities are those which are exempt from registration under Rule 144A
of the Securities Act of 1933. These securities may only be resold in
transactions exempt from registration which are normally transactions with
qualified institutional buyers.

ADR -- American Depository Receipt

LYON--Liquid yield option note

See Notes to Financial Statements

34
<PAGE> 36

GROWTH AND INCOME PORTFOLIO STATEMENT OF ASSETS AND LIABILITIES

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Total Investments (Cost $38,382,284)........................ $45,242,037
Cash........................................................ 1,875
Receivables:
Investments Sold.......................................... 54,788
Dividends................................................. 43,655
Variation Margin on Futures............................... 18,750
Portfolio Shares Sold..................................... 3,489
Other....................................................... 4,164
-----------
Total Assets.......................................... 45,368,758
-----------
LIABILITIES:
Payables:
Investments Purchased..................................... 196,716
Investment Advisory Fee................................... 14,489
Distributor and Affiliates................................ 3,342
Accrued Expenses............................................ 39,745
Trustees' Deferred Compensation and Retirement Plans........ 19,052
-----------
Total Liabilities..................................... 273,344
-----------
NET ASSETS.................................................. $45,095,414
===========
NET ASSETS CONSIST OF:
Capital (Par value of $.01 per share with an unlimited
number of shares authorized).............................. $37,097,660
Net Unrealized Appreciation................................. 6,912,478
Accumulated Net Realized Gain............................... 839,283
Accumulated Undistributed Net Investment Income............. 245,993
-----------
NET ASSETS.................................................. $45,095,414
===========
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER
SHARE
(Based on net assets of $45,095,414 and 2,846,040 shares
of beneficial interest issued and outstanding).......... $ 15.84
===========
</TABLE>

See Notes to Financial Statements

35
<PAGE> 37

GROWTH AND INCOME PORTFOLIO STATEMENT OF OPERATIONS

For the Six Months Ended June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends................................................... $ 316,920
Interest.................................................... 83,391
----------
Total Income............................................ 400,311
----------
EXPENSES:
Investment Advisory Fee..................................... 115,015
Custody..................................................... 23,627
Accounting.................................................. 12,500
Shareholder Reports......................................... 12,308
Trustees' Fees and Related Expenses......................... 8,800
Audit....................................................... 8,326
Shareholder Services........................................ 7,886
Legal....................................................... 544
Other....................................................... 878
----------
Total Expenses.......................................... 189,884
Investment Advisory Fee Reduction....................... 45,579
Less Credits Earned on Overnight Cash Balances.......... 26
----------
Net Expenses............................................ 144,279
----------
NET INVESTMENT INCOME....................................... $ 256,032
==========
REALIZED AND UNREALIZED GAIN/LOSS:
Realized Gain/Loss:
Investments............................................... $1,203,513
Futures................................................... 101,032
----------
Net Realized Gain........................................... 1,304,545
----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 4,305,619
----------
End of the Period:
Investments............................................. 6,859,753
Futures................................................. 52,725
----------
6,912,478
----------
Net Unrealized Appreciation During the Period............... 2,606,859
----------
NET REALIZED AND UNREALIZED GAIN............................ $3,911,404
==========
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $4,167,436
==========
</TABLE>

See Notes to Financial Statements

36
<PAGE> 38

GROWTH AND INCOME PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS

For the Six Months Ended June 30, 1999
and the Year Ended December 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 1999 December 31, 1998
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income....................................... $ 256,032 $ 269,134
Net Realized Gain/Loss...................................... 1,304,545 (422,384)
Net Unrealized Appreciation During the Period............... 2,606,859 3,766,083
----------- -----------
Change in Net Assets from Operations........................ 4,167,436 3,612,833
Distributions from Net Investment Income.................... (275,181) (18,683)
----------- -----------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES......... 3,892,255 3,594,150
----------- -----------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold................................... 11,645,162 18,319,408
Net Asset Value of Shares Issued Through Dividend
Reinvestment.............................................. 275,181 18,683
Cost of Shares Repurchased.................................. (2,947,751) (1,415,264)
----------- -----------
NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS.......... 8,972,592 16,922,827
----------- -----------
TOTAL INCREASE IN NET ASSETS................................ 12,864,847 20,516,977
NET ASSETS:
Beginning of the Period..................................... 32,230,567 11,713,590
----------- -----------
End of the Period (Including accumulated undistributed net
investment income of $245,993 and $265,142,
respectively)............................................. $45,095,414 $32,230,567
=========== ===========
</TABLE>

See Notes to Financial Statements

37
<PAGE> 39

GROWTH AND INCOME PORTFOLIO FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
December 23, 1996
Six Months Year Ended December 31 (Commencement of
Ended ---------------------- Investment Operations)
June 30, 1999 1998 1997 to December 31, 1996
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of the Period......... $14.481 $12.123 $ 9.970 $10.000
------- ------- ------- -------
Net Investment Income.......................... .073 .120 .072 .011
Net Realized and Unrealized Gain/Loss.......... 1.396 2.254 2.309 (.041)
------- ------- ------- -------
Total from Investment Operations................. 1.469 2.374 2.381 (.030)
------- ------- ------- -------
Less:
Distributions from Net Investment Income....... .106 .016 .065 -0-
Distributions from and in Excess of Net
Realized Gain................................ -0- -0- .163 -0-
------- ------- ------- -------
Total Distributions.............................. .106 .016 .228 -0-
------- ------- ------- -------
Net Asset Value, End of the Period............... $15.844 $14.481 $12.123 $ 9.970
======= ======= ======= =======
Total Return*.................................... 10.20%** 19.61% 23.90% (.30%)**
Net Assets at End of the Period (In millions).... $ 45.1 $ 32.2 $ 11.7 $ 0.5
Ratio of Expenses to Average Net Assets*......... .75% .75% .75% .75%
Ratio of Net Investment Income to Average Net
Assets*........................................ 1.33% 1.27% 1.19% 4.47%
Portfolio Turnover............................... 46%** 70% 96% 0%**
* If certain expenses had not been assumed by
Van Kampen, Total Return would have been
lower and the ratios would have been as
follows:
Ratio of Expenses to Average Net Assets.......... .99% 1.09% 1.63% 45.97%
Ratio of Net Investment Income/Loss to Average
Net Assets..................................... 1.09% .93% .31% (40.74%)
</TABLE>

** Non-Annualized

See Notes to Financial Statements

38
<PAGE> 40

PERFORMANCE RESULTS FOR THE PERIOD ENDED JUNE 30, 1999

VAN KAMPEN LIFE INVESTMENT TRUST

MORGAN STANLEY REAL ESTATE SECURITIES PORTFOLIO

<TABLE>
<S> <C>
TOTAL RETURNS
Six-month total return based on NAV(1)...................... 8.50%
One-year total return based on NAV(1)....................... 0.81%
Three-year average annual total return based on NAV(1)...... 14.71%
Life-of-Portfolio average annual total return based on
NAV(1)...................................................... 15.42%
Commencement date........................................... 07/03/95
</TABLE>

(1)Total return based on net asset value (NAV) assumes an investment at the
beginning of the period indicated, reinvestment of all distributions for the
period, and sale of all shares at the end of the period, all at NAV.

Market forecasts provided in this report may not necessarily come to pass.

Investing in REITs involves unique risks in addition to those risks associated
with investing in the real estate industry in general. Equity REITs may be
affected by changes in the value of the underlying property owned by the REITs,
while mortgage REITs may be affected by the quality of any credit extended.
REITs are dependent upon management skills, are not diversified and are subject
to the risks of financing projects. REITs are subject to heavy cash flow
dependency, default by borrowers, self-liquidation and the possibilities of
failing to qualify for tax-exempt status under the Internal Revenue Code of
1986, as amended. REITs, especially mortgage REITs, are also subject to some
interest rate risk (e.g., as interest rates rise, the value of REITs may
decline).

The Portfolio being offered is through a variable annuity contract.

39
<PAGE> 41

PORTFOLIO MANAGEMENT REVIEW

MORGAN STANLEY REAL ESTATE SECURITIES PORTFOLIO

The following is an interview with Theodore R. Bigman, portfolio manager of Van
Kampen Life Investment Trust--Morgan Stanley Real Estate Securities Portfolio.

Q WHAT WERE THE MARKET CONDITIONS IN WHICH THE PORTFOLIO OPERATED DURING THE
REPORTING PERIOD?

A After a difficult first quarter, in which we saw a continuation of the
negative market conditions from 1998, the REIT market finally experienced
recovery in the second quarter of 1999. The vast majority of this
turnaround was achieved from mid-April to mid-May due largely to a
dramatic change in leadership in the equity markets--investors finally turned
away from the richly valued large-cap growth and Internet stocks toward the
beaten-down cyclical and value stocks. This change was primarily the result of
economic consensus that the global economy had begun to recover. However, the
real estate market modestly regressed in the latter part of the reporting period
due to fears of a Federal Reserve tightening.
Unlike prior rallies, this REIT recovery was broad-based, lifting stocks in
all sectors. Even after this constructive period, REITs are still trading at a
slight discount to the underlying value of their assets. This means that it is
generally more attractive to buy real estate on Wall Street (through the
ownership of securities) than on Main Street (through the direct ownership of
properties).

Q HOW WERE THE FUNDAMENTALS OF THE REAL ESTATE MARKET AFFECTED?

A Although real estate cycles tend to move at a slow pace, the U.S. real
estate market has typically featured boom and bust cycles. Given the
increasing size of the public markets for real estate equity and debt,
there appears to be the opportunity for a muting of those cycles as the
scrutiny and attention on the potential for over-supplied markets has increased.
We base this belief on the current balance of supply and demand, as robust
levels of demand have served to mute any serious threat of oversupply.
Specifically, fundamentals in apartment and retail markets grew stronger during
the period, while the dramatic improvement in commercial markets showed signs of
reaching a plateau.

Q HOW DID YOU POSITION THE PORTFOLIO DURING THIS TIME?

A We continued to shape the Portfolio with companies that offer attractive
fundamental valuations relative to their underlying real estate value.
Throughout the year, we were encouraged by the undeniable strength of the
U.S. economy and became more optimistic that real estate fundamentals will
remain favorable. While the sector weightings remain very similar to the
Portfolio's profile six months ago, we have been more willing to take
opportunistic positions in certain areas, including hotels and offices.
Generally, we took advantage of the REIT rally to upgrade the quality of the
Portfolio. This is most notably evident in the office sector, where we sold some
of our holdings in the suburban office sector and added to the central business
district office sector.
The Portfolio's relative outperformance during the reporting period was
driven primarily by stock selection. Specifically, the Portfolio benefited from
investments in two West Coast apartment stocks and two retail companies--one
focused on grocery-anchored centers and the other on upscale malls. The
Portfolio's return was also supported by large positions in two office stocks
trading at significant discounts to their underlying asset value.

40
<PAGE> 42

Q WHAT WAS THE PORTFOLIO'S PERFORMANCE FOR THE SIX-MONTH PERIOD?

A The Portfolio achieved a total return of 8.50 percent(1) for the six-month
period ended June 30, 1999. This performance compares favorably to the
total return of the NAREIT (National Association of Real Estate Investment
Trusts) Equity REIT Index of 2.06 percent over the same period. The NAREIT Index
reflects the performance of a broad range of equity REITs of all property types.
By comparison, the Standard & Poor's 500 Index registered a total return of
12.36 percent for the six months ended June 30, 1999. The S&P 500 Index is a
broad-based, unmanaged index that reflects the general performance of the stock
market. Keep in mind that these indices are unmanaged statistical composites
that do not reflect any commissions or sales charges that would be incurred by
an investor purchasing the securities they represent. Of course, past
performance is no guarantee of comparable future results. Please refer to the
chart and footnotes on page 39 for additional Portfolio performance results.

Q WHAT IS YOUR OUTLOOK FOR THE REAL ESTATE MARKET?

A We are encouraged by the general sentiment among industry investors that
the real estate market is stable, even bordering on boring. It's a nice
middle ground between the unsustainable euphoria of years past and the
more recent sense of depression. We can attribute this shift in attitude to two
key factors. First, most REITs have developed business plans that do not require
equity issuance in 1999. Generally, these business plans place an emphasis on
managing the existing portfolio, while any external growth is limited to core
competencies. REIT management companies are pleased with the recovery in their
share prices but have declined to issue new equity at current prices. Second, at
the end of the first-quarter earnings season, companies reported strong internal
cash flow as a result of favorable property fundamentals. Because fundamentals
remain intact, we do not expect any significant variation in the results for the
second quarter.
We believe this return to stability will help calm current investors and
attract new investors looking for real estate exposure. It may also invite
non-dedicated investors looking for long-term growth of capital with only a
modest correlation to the broad equity markets.

Theodore R. Bigman
Portfolio Manager
Morgan Stanley Real Estate Securities Portfolio

41
<PAGE> 43

MORGAN STANLEY REAL ESTATE SECURITIES PORTFOLIO PORTFOLIO OF INVESTMENTS

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Description Shares Market Value
- --------------------------------------------------------
<S> <C> <C>
COMMON AND PREFERRED STOCKS 97.7%
APARTMENTS 21.1%
Amli Residential Properties
Trust......................... 66,800 $ 1,494,650
Apartment Investment &
Management Co., Class A....... 9,100 389,025
Archstone Communities Trust..... 160,046 3,511,009
AvalonBay Communities, Inc. .... 291,900 10,800,300
Berkshire Realty Company,
Inc. ......................... 129,900 1,501,969
Equity Residential Properties
Trust......................... 67,454 3,039,646
Essex Property Trust, Inc. ..... 241,000 8,525,375
Pennsylvania Real Estate
Investment.................... 184,900 3,871,343
Smith (Charles E.) Residential
Realty, Inc. ................. 184,400 6,258,075
Summit Properties, Inc. ........ 31,700 626,075
------------
40,017,467
------------
DEVELOPMENT 5.1%
Atlantic Gulf Communities Corp.
(a)........................... 426,124 279,644
Atlantic Gulf Communities Corp.
--
Preferred Ser B (Convertible
into
96,770 common shares) (a)..... 55,647 396,485
Atlantic Gulf Communities Corp.
--
Preferred Shares, 144A --
Private
Placement (a)(b).............. 79,420 565,868
Atlantic Gulf Communities Corp.
Warrants,
37,098 shares Class A, B and
C,
expiring 06/23/04 (a)......... 111,294 34,779
Atlantic Gulf Communities Corp.
Warrants,
74,352 shares Class A, B and
C,
expiring 06/24/01, 144A --
Private Placement (a) (b)..... 223,056 69,705
Brookfield Properties Corp. .... 548,742 7,177,545
Merry Land Properties, Inc.
(a)........................... 17,090 84,382
Security Capital Group, Inc.,
Class B....................... 68,000 990,250
------------
9,598,658
------------
HOTEL & LODGING 6.7%
Candlewood Hotel Co., Inc.
(a)........................... 80,000 300,000
Crestline Capital Corp. (a)..... 15,870 266,814
Host Marriott Corp. ............ 229,011 2,719,505
Interstate Hotels Management,
Inc. (a)...................... 13,575 55,997
Patriot American Hospitality,
Inc. ......................... 407,263 1,832,684
Promus Hotel Corp. (a).......... 117,000 3,627,000
Starwood Hotels & Resorts, Class
B............................. 127,531 3,897,666
------------
12,699,666
MANUFACTURED HOME COMMUNITIES 7.3%
Chateau Communities, Inc. ...... 402,328 12,047,988
Manufactured Home Communities,
Inc. ......................... 44,600 1,159,600
Sun Communities, Inc. .......... 15,100 536,050
------------
13,743,638
------------
OFFICE/INDUSTRIAL 34.2%
Arden Realty, Inc. ............. 391,300 9,635,762
Beacon Capital Partners Inc.,
144A --
Private Placement (a) (b)..... 271,300 5,426,000
Bedford Property Investors,
Inc. ......................... 8,300 148,363
Boston Properties, Inc. ........ 25,600 918,400
</TABLE>

<TABLE>
<CAPTION>
Description Shares Market Value
- --------------------------------------------------------
<S> <C> <C>
OFFICE/INDUSTRIAL (CONTINUED)
Brandywine Realty Trust......... 342,400 $ 6,783,800
CarrAmerica Realty Corp. ....... 263,400 6,585,000
Cornerstone Properties, Inc. ... 59,000 936,625
Crescent Real Estate Equities
Trust......................... 32,000 760,000
EastGroup Properties, Inc. ..... 13,600 272,850
Equity Office Properties
Trust......................... 196,011 5,022,782
Great Lakes REIT, Inc. ......... 404,375 6,571,094
Pacific Gulf Properties,
Inc. ......................... 312,600 7,072,575
Prentiss Properties Trust....... 800 18,800
Prime Group Realty Trust........ 323,600 5,561,875
ProLogis Trust.................. 11,300 228,825
SL Green Realty Corp. .......... 3,200 65,400
Spleker Properties, Inc. ....... 19,400 754,175
Trizec Hahn Corp. .............. 152,200 3,101,075
Wellsford Real Properties, Inc.,
144A --
Private Placement (a) (b)..... 447,242 4,807,851
------------
65,671,252
------------
SELF-STORAGE 5.4%
PS Business Parks Inc. ......... 157,120 3,829,800
Public Storage, Inc. ........... 193,138 5,407,864
Shurgard Storage Centers, Inc.,
Class A....................... 36,700 995,488
------------
10,233,152
------------
SHOPPING CENTERS 9.3%
Acadia Realty Trust............. 28,300 152,112
Burnham Pacific Properties,
Inc. ......................... 650,882 8,013,985
Federal Realty Investment,
Inc. ......................... 190,300 4,365,006
First Washington Realty Trust,
Inc. ......................... 74,487 1,741,134
Pan Pacific Retail Properties,
Inc. ......................... 121,800 2,359,875
Philips International Realty
Corp. ........................ 5,900 99,562
Ramco-Gershenson Properties
Trust......................... 2,000 32,500
Regency Realty Corp. ........... 41,100 901,631
Vornado Realty Trust............ 200 7,063
------------
17,672,868
------------
SHOPPING MALLS 8.5%
Rouse Co. ...................... 23,700 601,388
Simon Property Group, Inc. ..... 114,700 2,910,512
Taubman Centers, Inc. .......... 709,542 9,357,085
Urban Shopping Centers, Inc. ... 98,800 3,112,200
------------
15,981,185
------------
TOTAL COMMON AND PREFERRED STOCKS........ 184,617,886
CONVERTIBLE CORPORATE OBLIGATIONS 1.1%
Brookfield Properties Corp. --
Installment Receipts Representing
Subordinated Debenture ($2,262,000 par,
6.00% Coupon, 02/14/07 Maturity)....... 2,054,575
------------
TOTAL INVESTMENTS 98.8%
(Cost $180,904,226)....................
186,672,461
OTHER ASSETS IN EXCESS OF
LIABILITIES 1.2%...................... 2,351,710
------------
NET ASSETS 100.0%....................... $189,024,171
------------
</TABLE>

(a) Non-income producing security as this stock currently does not declare
dividends.

(a) 144A Securities are those which are exempt from registration under Rule 144A
of the Securities Act of 1933. These securities may only be resold in
transactions exempt from registration which are normally transactions with
qualified institutional buyers.

See Notes to Financial Statements

42
<PAGE> 44

MORGAN STANLEY REAL ESTATE SECURITIES PORTFOLIO STATEMENT OF ASSETS AND
LIABILITIES

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Total Investments (Cost $180,904,226)....................... $186,672,461
Receivables:
Investments Sold.......................................... 2,118,651
Dividends................................................. 1,611,405
Interest.................................................. 45,240
Portfolio Shares Sold..................................... 19,552
Unamortized Organizational Costs............................ 1,373
Other....................................................... 8,328
------------
Total Assets.......................................... 190,477,010
------------
LIABILITIES:
Payables:
Portfolio Shares Repurchased.............................. 1,018,967
Custodian Bank............................................ 171,311
Investment Advisory Fee................................... 158,963
Distributor and Affiliates................................ 18,100
Trustees' Deferred Compensation and Retirement Plans........ 43,994
Accrued Expenses............................................ 41,504
------------
Total Liabilities..................................... 1,452,839
------------
NET ASSETS.................................................. $189,024,171
============
NET ASSETS CONSIST OF:
Capital (Par value of $.01 per share with an unlimited
number of shares authorized).............................. $188,944,286
Net Unrealized Appreciation................................. 5,768,235
Accumulated Undistributed Net Investment Income............. 3,133,271
Accumulated Net Realized Loss............................... (8,821,621)
------------
NET ASSETS.................................................. $189,024,171
============
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER
SHARE
(Based on net assets of $189,024,171 and 13,608,856 shares
of beneficial interest issued and outstanding).......... $ 13.89
============
</TABLE>

See Notes to Financial Statements

43
<PAGE> 45

MORGAN STANLEY REAL ESTATE SECURITIES PORTFOLIO STATEMENT OF OPERATIONS

For the Six Months Ended June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

INVESTMENT INCOME:
Dividends................................................... $ 4,062,632
Interest.................................................... 136,731
-----------
Total Income.......................................... 4,199,363
-----------
EXPENSES:
Investment Advisory Fee..................................... 940,318
Accounting.................................................. 34,933
Custody..................................................... 14,842
Trustees' Fees and Related Expenses......................... 13,604
Shareholder Services........................................ 8,422
Legal....................................................... 4,887
Amortization of Organizational Costs........................ 677
Other....................................................... 27,911
-----------
Total Expenses........................................ 1,045,594
Investment Advisory Fee Reduction..................... 11,617
-----------
Net Expenses.......................................... 1,033,977
-----------
NET INVESTMENT INCOME....................................... $ 3,165,386
===========
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Loss........................................... $(2,049,123)
-----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... (7,525,146)
End of the Period......................................... 5,768,235
-----------
Net Unrealized Appreciation During the Period............... 13,293,381
-----------
NET REALIZED AND UNREALIZED GAIN............................ $11,244,258
===========
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $14,409,644
===========
</TABLE>

See Notes to Financial Statements

44
<PAGE> 46

MORGAN STANLEY REAL ESTATE SECURITIES PORTFOLIO STATEMENT OF CHANGES IN NET
ASSETS

For the Six Months Ended June 30, 1999
and the Year Ended December 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 1999 December 31, 1998
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income....................................... $ 3,165,386 $ 11,836,164
Net Realized Loss........................................... (2,049,123) (6,375,125)
Net Unrealized Appreciation/Depreciation During the
Period.................................................... 13,293,381 (38,598,410)
------------ ------------
Change in Net Assets from Operations........................ 14,409,644 (33,137,371)
------------ ------------
Distributions from Net Investment Income.................... (11,849,805) (453,855)
Distributions from Net Realized Gain........................ -0- (4,452,811)
------------ ------------
Total Distributions......................................... (11,849,805) (4,906,666)
------------ ------------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES......... 2,559,839 (38,044,037)
------------ ------------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold................................... 40,858,461 88,276,432
Net Asset Value of Shares Issued Through Dividend
Reinvestment.............................................. 11,849,796 4,906,666
Cost of Shares Repurchased.................................. (75,074,639) (145,715,375)
------------ ------------
NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS.......... (22,366,382) (52,532,277)
------------ ------------
TOTAL DECREASE IN NET ASSETS................................ (19,806,543) (90,576,314)
NET ASSETS:
Beginning of the Period..................................... 208,830,714 299,407,028
------------ ------------
End of the Period (Including accumulated undistributed net
investment income of $3,133,271
and $11,817,690, respectively)............................ $189,024,171 $208,830,714
============ ============
</TABLE>

See Notes to Financial Statements

45
<PAGE> 47

MORGAN STANLEY REAL ESTATE SECURITIES PORTFOLIO FINANCIAL HIGHLIGHTS

The following schedule presents financial highlights for one share of
the Portfolio outstanding throughout the periods indicated. (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
July 3, 1995
(Commencement
Year Ended December 31, of Investment
Six Months Ended --------------------------- Operations) to
June 30, 1999 1998 1997 1996 December 31, 1995
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of the Period... $13.759 $15.846 $14.784 $ 10.74 $10.00
------- ------- ------- ------- ------
Net Investment Income.................... .364 .781 .464 .217 .20
Net Realized and Unrealized Gain/Loss.... .680 (2.597) 2.617 4.117 .6325
------- ------- ------- ------- ------
Total from Investment Operations........... 1.044 (1.816) 3.081 4.334 .8325
------- ------- ------- ------- ------
Less:
Distributions from Net Investment
Income................................. .913 .025 .470 .199 .0925
Distributions from Net Realized Gain..... -0- .246 1.549 .091 -0-
------- ------- ------- ------- ------
Total Distributions........................ .913 .271 2.019 .290 .0925
------- ------- ------- ------- ------
Net Asset Value, End of the Period......... $13.890 $13.759 $15.846 $14.784 $10.74
======= ======= ======= ======= ======
Total Return*.............................. 8.50%** (11.62%) 21.47% 40.53% 8.35%**
Net Assets at End of the Period (In
millions)................................ $ 189.0 $ 208.8 $ 299.4 $ 167.5 $ 8.6
Ratio of Expenses to Average Net Assets*... 1.10% 1.08% 1.07% 1.10% 2.50%
Ratio of Net Investment Income to Average
Net Assets*.............................. 3.37% 4.72% 3.42% 5.06% 3.75%
Portfolio Turnover......................... 16%** 110% 177% 84% 85%**
* If certain expenses had not been assumed
by Van Kampen, Total Return would have
been lower and the ratios would have
been as follows:
Ratio of Expenses to Average Net Assets.... 1.11% N/A N/A 1.27% 2.90%
Ratio of Net Investment Income to Average
Net Assets............................... 3.36% N/A N/A 4.89% 3.36%
</TABLE>

** Non-Annualized

N/A = Not Applicable

See Notes to Financial Statements

46
<PAGE> 48

PERFORMANCE RESULTS FOR THE PERIOD ENDED JUNE 30, 1999

VAN KAMPEN LIFE INVESTMENT TRUST

STRATEGIC STOCK PORTFOLIO

<TABLE>
<S> <C>
TOTAL RETURNS
Six-month total return based on NAV(1)...................... 11.50%
One-year total return based on NAV(1)....................... 18.23%
Life-of-Portfolio average annual total return based on
NAV(1).................................................... 18.89%
Commencement date........................................... 11/03/97
</TABLE>

(1)Total return based on net asset value (NAV) assumes an investment at the
beginning of the period indicated, reinvestment of all distributions for the
period, and sale of all shares at the end of the period, all at NAV.

Market forecasts provided in this report may not necessarily come to pass.

The Portfolio being offered is through a variable annuity contract.

47
<PAGE> 49

PORTFOLIO MANAGEMENT REVIEW

STRATEGIC STOCK PORTFOLIO

The following is an interview with the portfolio management team of the Van
Kampen Life Investment Trust--Strategic Stock Portfolio. The team is led by John
M. Cunniff, senior portfolio manager, Raj Wagle, portfolio manager (since May
1999), and Stephen L. Boyd, chief investment officer for equity investments.

Q WHAT MARKET FACTORS AFFECTED THE PORTFOLIO DURING THE REPORTING PERIOD?

Q HOW DID YOU SEEK TO MEET THE PORTFOLIO'S OBJECTIVE?

A We use a disciplined strategy to select undervalued stocks of high-quality
companies. First, we analyze the Dow, which is composed of 30 blue-chip
stocks. Each month, we invest half of the Portfolio's new assets into
equal amounts of the 10 Dow stocks with the highest dividend-yields. Investors
often refer to this as a "Dogs of the Dow" strategy.
Next, we review the nearly 370 large-company stocks that comprise the Morgan
Stanley Capital International-USA Index. We exclude the 30 stocks of the Dow and
all utility and financial stocks. The remaining securities are screened for
quality factors, such as sales growth, earnings growth, dividend performance,
and trading volume. Of the securities that pass our screen, we select the 10
stocks with the highest dividend yields. The other half of the Portfolio's new
assets are invested in equal amounts of these 10 stocks each month.
By limiting our investments to these two indices, we select from a pool of
high-quality U.S. companies. Also, because stocks with high dividend-yields tend
to be undervalued, our strategy pinpoints companies that could potentially
rebound in price.

Q HOW DOES THE STRATEGY WORK OVER TIME?

A Every month, we purchase 20 stocks--10 from the Dow and 10 from the
MSCI-USA Index--so the Portfolio has 12 "baskets" containing 20 stocks
each. Each basket is sold after 12 months, and a new basket of 20 stocks
is purchased to replace it. It is important to understand that shareholders of
the Portfolio don't own just one basket of stocks but instead own shares of the
whole Portfolio, which contains multiple baskets.
Through this stock selection process, the Portfolio is rotated every month
to purchase stocks that may be undervalued in the marketplace and sell stocks
that have had a full 12 months to potentially rebound to their fair values. It
has been our experience that solid, well-established companies do not often
languish at reduced valuations. Their true worth is usually recognized over
time.

Q WHICH STOCKS HAD THE GREATEST POSITIVE IMPACT ON THE PORTFOLIO'S
PERFORMANCE?

A The Portfolio's largest holdings and biggest contributors to positive
performance were stocks that passed our screens during multiple months and
therefore were purchased repeatedly throughout the year. The stocks that
most significantly contributed to the total return for the six-month period
included Limited, JP Morgan, Caterpillar, Minnesota Mining & Manufacturing, and
Du Pont. All of these companies benefited from the continuing economic
expansion. This growth has fueled consumer retailers, such as Limited. It has
also enabled financial stocks, such as

48
<PAGE> 50

JP Morgan, to recover from last fall's global economic crisis. And, most
directly, economic expansion has fueled earnings increases at industrial
companies such as Caterpillar, Minnesota Mining & Manufacturing, and Du Pont.
Please keep in mind that not all stocks in the Portfolio performed as
favorably, nor is there any guarantee they will continue to do so in the future.

Q WHAT INVESTMENTS MOST HURT THE PORTFOLIO?

A Philip Morris stands out as the worst contributor to the total return of
the Portfolio during this period. Concerns about ongoing litigation
continued to trouble investors, leading to Philip Morris's
underperformance. Because of the stock's high dividend yield, Philip
Morris represented a relatively large portion of the Portfolio and therefore had
a substantial impact on the Portfolio's return.

Q HOW DID THE PORTFOLIO PERFORM DURING THE REPORTING PERIOD?

A Due to the generally positive performance during the reporting period of
the types of stocks that meet the Portfolio's discipline, the Portfolio
achieved a six-month total return of 11.50 percent(1) as of June 30, 1999.
By comparison, the Standard & Poor's 500 Index returned 12.36 percent, the
Dow Jones Industrial Average returned 20.46 percent, and the MSCI-USA Index
returned 11.95 percent for the same period. Past performance does not guarantee
future results.
The S&P 500 Index is a broad-based, unmanaged index that reflects the
general performance of the stock market. The Dow consists of 30 actively traded
stocks of well-established, blue-chip companies, and the MSCI-USA Index achieves
a 60 percent representation of U.S. market capitalization, as well as 60 percent
of the capitalization of each industry group. These indices are statistical
composites that do not include any commissions that would be paid by an investor
purchasing the securities represented by these indices. Please refer to the
chart and footnotes on page 47 for additional performance results.

Q WHAT DO YOU SEE AHEAD FOR THE PORTFOLIO?

A We're anticipating continued market volatility. Concerns about interest
rates will make for interesting times ahead, and questions about the year
2000 problem will affect investors' decisions--although to what extent is
uncertain. As we've mentioned in prior reports, during periods of market
uncertainty, investors often look to purchase stock in large, well-established
companies with a history of high dividend-yields. We believe that the Strategic
Stock Portfolio, which purchases stock in only these types of companies, may
represent an attractive option for such investors.

John M. Cunniff
Senior Portfolio Manager
Strategic Stock Portfolio

Raj Wagle
Portfolio Manager
Strategic Stock Portfolio

Stephen L. Boyd
Chief Investment Officer
Equity Investments

49
<PAGE> 51

STRATEGIC STOCK PORTFOLIO PORTFOLIO OF INVESTMENTS

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Description Shares Market Value
- ---------------------------------------------------------
<S> <C> <C>
COMMON STOCKS 97.3%
CONSUMER DISTRIBUTION 7.9%
Limited, Inc. ...................
20,380 $ 924,743
May Department Stores Co. .......
22,145 905,177
Sears Roebuck & Co. .............
2,640 117,645
SUPERVALU, Inc. .................
4,340 111,484
SYSCO Corp. .....................
9,340 278,449
-----------
2,337,498
-----------
CONSUMER DURABLES 17.7%
DaimlerChrysler, AG..............
1,081 96,074
Delphi Automotive Systems
Corp. .........................
9,568 177,606
Eastman Kodak Co. ...............
17,110 1,159,202
General Motors Corp. ............
14,770 974,820
Genuine Parts Co. ...............
29,470 1,031,449
Goodyear Tire & Rubber Co. ......
14,730 866,308
Masco Corp. .....................
3,970 114,634
Maytag Corp. ....................
2,900 202,094
Newell Rubbermaid, Inc. .........
13,290 617,985
-----------
5,240,172
-----------
CONSUMER NON-DURABLES 12.0%
Anheuser-Busch Cos., Inc. .......
5,600 397,250
General Mills, Inc. .............
8,780 705,693
H.J. Heinz Co. ..................
13,570 680,196
Philip Morris Cos., Inc. ........
29,900 1,201,606
Sara Lee Corp. ..................
24,320 551,760
-----------
3,536,505
-----------
CONSUMER SERVICES 1.7%
McGraw-Hill, Inc. ...............
6,670 359,763
Service Corp. International......
7,410 142,643
-----------
502,406
-----------
ENERGY 10.0%
Chevron Corp. ...................
15,210 1,447,801
Exxon Corp. .....................
17,560 1,354,314
USX -- Marathon Group............
4,570 148,811
-----------
2,950,926
-----------
FINANCE 5.5%
JP Morgan & Co., Inc. ...........
11,470 1,611,535
-----------
HEALTHCARE 2.1%
Abbott Laboratories, Inc. .......
7,580 344,890
American Home Products Corp. ....
4,770 274,275
-----------
619,165
-----------
</TABLE>

<TABLE>
<CAPTION>
Description Shares Market Value
- ---------------------------------------------------------
<S> <C> <C>
PRODUCER MANUFACTURING 17.1%
Caterpillar, Inc. ...............
22,930 $ 1,375,800
Deere & Co. .....................
15,520 614,980
Fluor Corp. .....................
7,070 286,335
Milacron, Inc. ..................
5,880 108,780
Minnesota Mining & Manufacturing
Co. ...........................
16,630 1,445,771
Parker-Hannifin Corp. ...........
11,940 546,255
Textron, Inc. ...................
3,080 253,523
Tyco International Ltd. .........
4,557 431,776
-----------
5,063,220
-----------
RAW MATERIALS/PROCESSING INDUSTRIES 14.5%
Air Products & Chemicals, Inc....
20,170 811,843
E.I. Du Pont de Nemours & Co. ...
18,650 1,274,028
International Paper Co. .........
15,950 805,475
PPG Industries, Inc. ............
6,630 391,584
Sherwin-Williams Co. ............
32,880 912,420
Union Carbide Corp. .............
1,880 91,650
-----------
4,287,000
-----------
TECHNOLOGY 1.7%
General Dynamics Corp. ..........
4,480 306,880
Harris Corp. ....................
4,770 186,924
-----------
493,804
-----------
TRANSPORTATION 0.4%
Burlington Northern Santa Fe.....
3,800 117,800
-----------
UTILITIES 6.7%
AT&T Corp. ......................
7,050 393,478
Bell Atlantic Corp. .............
10,560 690,360
SBC Communications, Inc. ........
15,290 886,820
-----------
1,970,658
-----------
TOTAL LONG-TERM INVESTMENTS
(Cost $25,411,471)...................... 28,730,689
REPURCHASE AGREEMENT 2.7%
Goldman Sachs ($805,000 par collateralized
by U.S. Government obligations in a
pooled cash account, dated 06/30/99, to
be sold on 07/01/99 at $805,108) (Cost
$805,000)............................... 805,000
-----------
TOTAL INVESTMENTS 100.0%
(Cost $26,216,471)...................... 29,535,689
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.0%....................... 8,826
-----------
NET ASSETS 100.0%........................ $29,544,515
===========
</TABLE>

See Notes to Financial Statements

50
<PAGE> 52

STRATEGIC STOCK PORTFOLIO STATEMENT OF ASSETS AND LIABILITIES

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Total Investments (Cost $26,216,471)........................ $29,535,689
Cash........................................................ 4,112
Receivables:
Portfolio Shares Sold..................................... 82,541
Dividends................................................. 59,163
Unamortized Organizational Costs............................ 26,782
Other....................................................... 1,252
-----------
Total Assets.......................................... 29,709,539
-----------
LIABILITIES:
Payables:
Investments Purchased..................................... 107,876
Portfolio Shares Repurchased.............................. 17,836
Distributor and Affiliates................................ 4,531
Accrued Expenses............................................ 21,678
Trustees' Deferred Compensation and Retirement Plans........ 13,103
-----------
Total Liabilities..................................... 165,024
-----------
NET ASSETS.................................................. $29,544,515
===========
NET ASSETS CONSIST OF:
Capital (Par value of $.01 per share with an unlimited
number of shares authorized).............................. $25,511,673
Net Unrealized Appreciation................................. 3,319,218
Accumulated Net Realized Gain............................... 503,599
Accumulated Undistributed Net Investment Income............. 210,025
-----------
NET ASSETS.................................................. $29,544,515
===========
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER
SHARE
(Based on net assets of $29,544,515 and 2,247,601 shares
of beneficial interest issued and outstanding).......... $ 13.14
===========
</TABLE>

See Notes to Financial Statements

51
<PAGE> 53

STRATEGIC STOCK PORTFOLIO STATEMENT OF OPERATIONS

For the Six Months Ended June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

INVESTMENT INCOME:
Dividends................................................... $ 284,378
Interest.................................................... 14,650
----------
Total Income............................................ 299,028
----------
EXPENSES:
Investment Advisory Fee..................................... 62,506
Custody..................................................... 17,530
Shareholder Services........................................ 7,790
Audit....................................................... 7,164
Trustees' Fees and Related Expenses......................... 6,878
Accounting.................................................. 6,237
Amortization of Organizational Costs........................ 3,968
Legal....................................................... 599
Other....................................................... 5,746
----------
Total Expenses.......................................... 118,418
Investment Advisory Fee Reduction....................... 36,889
Less Credits Earned on Overnight Cash Balances.......... 61
----------
Net Expenses............................................ 81,468
----------
NET INVESTMENT INCOME....................................... $ 217,560
==========
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Gain........................................... $ 537,676
----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 1,218,605
End of the Period......................................... 3,319,218
----------
Net Unrealized Appreciation During the Period............... 2,100,613
----------
NET REALIZED AND UNREALIZED GAIN............................ $2,638,289
==========
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $2,855,849
==========
</TABLE>

See Notes to Financial Statements

52
<PAGE> 54

STRATEGIC STOCK PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS

For the Six Months Ended June 30, 1999
and Year Ended December 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 1999 December 31, 1998
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income....................................... $ 217,560 $ 228,843
Net Realized Gain........................................... 537,676 27,796
Net Unrealized Appreciation During the Period............... 2,100,613 1,211,770
----------- -----------
Change in Net Assets from Operations........................ 2,855,849 1,468,409
----------- -----------
Distributions from Net Investment Income.................... (236,337) (6,617)
Distributions from Net Realized Gain........................ (61,873) -0-
----------- -----------
Total Distributions......................................... (298,210) (6,617)
----------- -----------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES......... 2,557,639 1,461,792
----------- -----------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold................................... 7,354,621 19,135,086
Net Asset Value of Shares Issued Through Dividend
Reinvestment.............................................. 295,270 6,375
Cost of Shares Purchased.................................... (2,071,871) (1,720,599)
----------- -----------
NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS.......... 5,578,020 17,420,862
----------- -----------
TOTAL INCREASE IN NET ASSETS................................ 8,135,659 18,882,654
NET ASSETS:
Beginning of the Period..................................... 21,408,856 2,526,202
----------- -----------
End of Period (Including accumulated undistributed net
investment income of $210,025 and $228,802,
respectively)............................................. $29,544,515 $21,408,856
=========== ===========
</TABLE>

See Notes to Financial Statements

53
<PAGE> 55

STRATEGIC STOCK PORTFOLIO FINANCIAL HIGHLIGHTS

The following schedule presents financial highlights for one share of
the Portfolio outstanding throughout the periods indicated. (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
November 3, 1997
(Commencement
Six Months of Investment
Ended Year Ended Operations) to
June 30, 1999 December 31, 1998 December 31, 1997
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Asset Value, Beginning of the Period................ $11.932 $10.245 $10.000
------- ------- -------
Net Investment Income................................. .082 .113 .027
Net Realized and Unrealized Gain...................... 1.278 1.586 .218
------- ------- -------
Total from Investment Operations........................ 1.360 1.699 .245
------- ------- -------
Less:
Distributions from Net Investment Income.............. .117 .012 -0-
Distributions from Net Realized Gain.................. .031 -0- -0-
------- ------- -------
Total Distributions..................................... .148 .012 -0-
------- ------- -------
Net Asset Value, End of the Period...................... $13.144 $11.932 $10.245
======= ======= =======
Total Return*........................................... 11.50%** 16.51% 2.45%**
Net Assets at End of the Period (In millions)........... $ 29.5 $ 21.4 $ 2.5
Ratio of Expenses to Average Net Assets*................ .65% .65% .61%
Ratio of Net Investment Income to Average Net Assets*... 1.74% 2.01% 2.67%
Portfolio Turnover...................................... 21%** 10% 0%**
* If certain expenses had not been assumed by Van
Kampen, Total Return would have been lower and the
ratios would have been as follows:
Ratio of Expenses to Average Net Assets................. .94% 1.25% 2.59%
Ratio of Net Investment Income to Average Net Assets.... 1.44% 1.41% .68%
</TABLE>

** Non-Annualized

See Notes to Financial Statements

54
<PAGE> 56

NOTES TO FINANCIAL STATEMENTS

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen Life Investment Trust (the "Trust") is registered under the
Investment Company Act of 1940, as amended, as a diversified open-end management
investment company comprised of eleven Portfolios: Asset Allocation Portfolio(1)
("Asset Allocation"), Comstock Portfolio ("Comstock"), Domestic Income
Portfolio(1) ("Domestic"), Emerging Growth Portfolio ("Emerging Growth"),
Enterprise Portfolio ("Enterprise"), Global Equity Portfolio(1) ("Global
Equity"), Government Portfolio(1) ("Government"), Growth and Income Portfolio
("Growth and Income"), Money Market Portfolio(1) ("Money Market"), Morgan
Stanley Real Estate Securities Portfolio ("Real Estate") and Strategic Stock
Portfolio ("Strategic Stock") (collectively the "Portfolios"). Each Portfolio is
accounted for as a separate entity.
The goals of the Portfolios are as follows: Asset Allocation seeks a high
total investment return consistent with prudent risk; Comstock seeks capital
growth and income through investments in equity securities including common and
preferred stocks and securities convertible into common and preferred stocks;
Domestic seeks income as its primary objective and capital appreciation as a
secondary objective; Emerging Growth seeks capital appreciation by investing
principally in common stocks of small and medium sized companies; Enterprise
seeks capital appreciation by investing principally in common stocks; Global
Equity seeks long-term growth of capital through an internationally diversified
portfolio of equity securities of any nation, including the United States;
Government seeks high current return consistent with preservation of capital;
Growth and Income seeks long-term growth of capital and income by investing
primarily in income-producing equity securities including common stocks and
convertible securities; Money Market seeks protection of capital and high
current income by investing in short-term money market instruments; Real Estate
seeks long-term growth of capital by investing principally in securities of
companies operating in the real estate industry; and Strategic Stock seeks an
above average total return consistent with the preservation of invested capital,
by investing primarily in a portfolio of dividend paying equity securities
included in the Dow Jones Industrial Average or the Morgan Stanley Capital
International USA Index.
The following is a summary of significant accounting policies consistently
followed by the Trust 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 in securities listed on a securities exchange
are valued at their sales price as of the close of such securities exchange.
Fixed income investments are valued by independent pricing services or dealers
using the mean of the bid and asked prices. Unlisted securities and listed
securities for which the last sales price is not available are valued at the
mean of the bid and asked prices. For those securities where prices or
quotations are not available, valuations are determined in accordance with
procedures established in good faith by the Board of Trustees. Short-term
securities with remaining maturities of 60 days or less are valued at amortized
cost.

B. SECURITY TRANSACTIONS--Security transactions are recorded on a trade date
basis. Realized gains and losses are determined on an identified cost basis. The
Portfolios may purchase and sell securities on a "when issued" or "delayed
delivery" basis, with settlement to occur at a later date. The value of the
security so purchased is subject to market fluctuations during this period. The
Portfolios will maintain, in a segregated account with its custodian, assets
having an aggregate value at least equal to the amount of the when issued or
delayed delivery purchase commitments until payment is made.
The Portfolios may invest in repurchase agreements which are short-term
investments in which the Portfolios acquire ownership of a debt security and the
seller agrees to repurchase the security at a future time and specified price.
The Portfolios 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

- ---------------

(1) These Portfolios are included under a separate cover.

55
<PAGE> 57
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

"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 Portfolios 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 Portfolios.

C. INCOME AND EXPENSES--Dividend income is recorded on the ex-dividend date and
interest income is recorded on an accrual basis. Discounts on debt securities
purchased are amortized over the expected life of each applicable security.
Premiums on debt securities are not amortized.

D. ORGANIZATIONAL COSTS--Emerging Growth, Real Estate and Strategic Stock have
reimbursed Van Kampen Funds Inc. or its affiliates (collectively "Van Kampen")
for costs incurred in connection with each Portfolio's organization in the
amount of $6,828, $6,828 and $40,000, respectively per Portfolio. These costs
are being amortized on a straight line basis over the 60 month period ending
July 2, 2000, July 2, 2000 and November 4, 2002, respectively. The Adviser has
agreed that in the event any of the initial shares of the Portfolios originally
purchased by Van Kampen are redeemed during the amortization period, the
Portfolios will be reimbursed for any unamortized organizational costs in the
same proportion as the number of shares redeemed bears to the number of initial
shares held at the time of redemption.

E. FEDERAL INCOME TAXES--It is each Portfolio'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.
Each Portfolio intends to utilize provisions of the federal income tax laws
which allow each Portfolio 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. The following table presents the capital loss
carryforward at December 31, 1998 along with its expiration dates. The table
also presents the identified cost of investments at June 30, 1999 for federal
income tax

56
<PAGE> 58
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

purposes with the associated gross unrealized appreciation, gross unrealized
depreciation and net unrealized appreciation/depreciation on investments.

<TABLE>
<CAPTION>
EMERGING
COMSTOCK GROWTH ENTERPRISE
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Realized capital loss carryforward................... -- $ 1,676,588 --
Expiration dates of capital loss carryforward........ -- 2004-2006 --
Amount expiring on 12/31/99.......................... -- -- --
Identified cost...................................... $1,049,264 $64,305,483 $100,077,419
Gross unrealized appreciation........................ 36,125 19,897,714 42,869,756
Gross unrealized depreciation........................ 40,705 1,099,072 1,246,825
Net unrealized appreciation/depreciation............. (4,580) 18,798,642 41,622,931
</TABLE>

<TABLE>
<CAPTION>
GROWTH
AND REAL STRATEGIC
INCOME ESTATE STOCK
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Realized capital loss carryforward.................. $ 289,634 $ 3,603,556 --
Expiration dates of capital loss carryforward....... 2006 2006 --
Amount expiring on 12/31/99......................... -- -- --
Identified cost..................................... $38,473,370 $182,085,798 $26,249,237
Gross unrealized appreciation....................... 7,394,081 13,724,245 3,732,994
Gross unrealized depreciation....................... 625,415 9,137,582 446,541
Net unrealized appreciation/depreciation............ 6,768,666 4,586,663 3,286,453
</TABLE>

Net realized gains or losses may differ for financial reporting and tax
purposes primarily as a result of post October 31 losses which are not
recognized for tax purposes until the first day of the following fiscal year and
the deferral of losses relating to wash sale transactions.

F. DISTRIBUTION OF INCOME AND GAINS--Comstock, Emerging Growth, Enterprise,
Growth and Income, Real Estate and Strategic Stock declare dividends from net
investment income and net realized gains, if any, annually. Distributions from
net realized gains for book purposes may include short-term capital gains and
gains on option and futures transactions. All short-term capital gains and a
portion of option and futures gains are included in ordinary income for tax
purposes.
Due to inherent differences in the recognition of income, expenses and
realized gains/losses under generally accepted accounting principles and for
federal income tax purposes, the amount of distributable net investment income
may differ between book and federal income tax purposes for a particular period.
These differences are temporary in nature, but may result in book basis
distribution in excess of net investment income for certain periods.

G. EXPENSE REDUCTIONS--During the six months ended June 30, 1999, custody fees
were reduced by the following amounts as a result of credits earned on overnight
cash balances:

<TABLE>
<CAPTION>
GROWTH
EMERGING AND REAL STRATEGIC
COMSTOCK GROWTH ENTERPRISE INCOME ESTATE STOCK
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Credits earned on overnight cash
balances........................... $-0- $181 $2,034 $26 $-0- $61
</TABLE>

57
<PAGE> 59
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of the Trust's Investment Advisory Agreement, the Adviser will
provide investment advice and facilities to the Trust for an annual fee payable
monthly based upon the average daily net assets as follows:

<TABLE>
<CAPTION>
- -------------------------------------------------------------------
<S> <C>
Asset Allocation, Domestic Income, Enterprise, Government
and Money Market (based upon their combined net assets)
First $500 million..................................... .50%
Next $500 million...................................... .45%
Over $1 billion........................................ .40%
(The resulting fee is prorated to each of these
Portfolios based upon their respective average
daily net assets.)
Emerging Growth............................................. .70%
Comstock, Growth and Income
First $500 million..................................... .60%
Over $500 million...................................... .55%
Real Estate................................................. 1.00%
Strategic Stock............................................. .50%
</TABLE>

In relation to Real Estate, the Adviser has entered into a subadvisory
agreement, dated October 1, 1998, with Morgan Stanley Dean Witter Investment
Management Inc. (the "Subadviser") to provide advisory services to the Portfolio
and the Adviser with respect to the Portfolio's investments. For these services,
the Adviser pays 50% of its advisory fees to the Subadviser.
Under the terms of the advisory agreement, if the total ordinary business
expenses, exclusive of taxes, distribution fees and interest, exceed .95% of the
average daily net assets of Enterprise, the Adviser will reimburse the Portfolio
for the amount of the excess. Additionally, the Adviser has voluntarily agreed
to reimburse the Portfolios for all expenses as a percent of average daily net
assets in excess of the following:

<TABLE>
<CAPTION>
- -------------------------------------------------------------------
<S> <C>
Comstock.................................................... .95%
Enterprise.................................................. .60%
Emerging Growth............................................. .85%
Growth and Income........................................... .75%
Real Estate................................................. 1.10%
Strategic Stock............................................. .65%
</TABLE>

Other transactions with affiliates during the six months ended June 30, 1999
were as follows:

<TABLE>
<CAPTION>
EMERGING
COMSTOCK GROWTH ENTERPRISE
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Accounting.................................................. $ 5,600 $13,400 $20,500
Shareholder servicing agent's fees.......................... -0- 7,400 7,500
Legal (Skadden Arps)........................................ 100 600 2,200
</TABLE>

<TABLE>
<CAPTION>
GROWTH
AND REAL STRATEGIC
INCOME ESTATE STOCK
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Accounting.................................................. $ 12,500 $34,900 $ 7,400
Shareholder servicing agent's fees.......................... 7,400 7,400 7,300
Legal (Skadden Arps)........................................ 500 4,900 600
</TABLE>

58
<PAGE> 60
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

Accounting services are provided by Van Kampen at cost. Van Kampen Investor
Services Inc. ("VKIS"), an affiliate of the Adviser, serves as the shareholder
servicing agent for the Portfolios. Transfer agency fees are determined through
negotiations with the Portfolios' Board of Trustees and are based on competitive
benchmarks. Legal services are provided by Skadden, Arps, Slate, Meagher & Flom
(Illinois), counsel to the Portfolios, of which a trustee of the Portfolios is
an affiliated person.
Certain officers and trustees of the Portfolios are also officers and
directors of Van Kampen. The Portfolios do not compensate their officers or
trustees who are officers of Van Kampen.
The Portfolios provide deferred compensation and retirement plans for their
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 Trust. The maximum
annual benefit per trustee under the plan is $2,500 per portfolio.
At June 30, 1999, Van Kampen owned 100,000 shares of Comstock, 10 shares of
Emerging Growth, 50,000 shares of Growth and Income, 10 shares of Real Estate,
and 20,000 shares of Strategic Stock.

3. CAPITAL TRANSACTIONS
For the six months ended June 30, 1999, share transactions were as follows:

<TABLE>
<CAPTION>
EMERGING
COMSTOCK GROWTH ENTERPRISE
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Beginning Shares..................................... 100,000(1) 1,477,759 5,518,824
Sales................................................ 4,351 1,876,262 979,538
Dividend Reinvestment................................ -0- -0- 445,355
Repurchases.......................................... -0- (378,403) (574,865)
------------ ----------- -----------
Ending Shares........................................ 104,351 2,975,618 6,368,852
============ =========== ===========
Capital at 6/30/99................................... $ 1,044,412 $62,858,176 $88,967,415
============ =========== ===========
</TABLE>

<TABLE>
<CAPTION>
GROWTH AND REAL STRATEGIC
INCOME ESTATE STOCK
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Beginning Shares.................................... 2,225,645 15,178,156 1,794,237
Sales............................................... 793,584 3,049,652 592,288
Dividend Reinvestment............................... 19,204 972,091 24,667
Repurchases......................................... (192,393) (5,591,043) (163,591)
----------- ------------ -----------
Ending Shares....................................... 2,846,040 13,608,856 2,247,601
=========== ============ ===========
Capital at 6/30/99.................................. $37,097,660 $188,944,286 $25,511,673
=========== ============ ===========
</TABLE>

(1) Portfolio commenced investment operations during the period.

At June 30, 1999, with the exception of Van Kampen's ownership of shares of
certain portfolios, two insurance companies or their separate accounts were
record owners of all but a de minimus number of the shares of each Portfolio.

59
<PAGE> 61
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

For the year ended December 31, 1998, share transactions were as follows:

<TABLE>
<CAPTION>
EMERGING
GROWTH ENTERPRISE
- ------------------------------------------------------------------------------------------
<S> <C> <C>
Beginning Shares............................................ 637,815 5,452,063
Sales....................................................... 1,341,978 1,178,203
Dividend Reinvestment....................................... 260 59,530
Repurchases................................................. (502,294) (1,170,972)
----------- -----------
Ending Shares............................................... 1,477,759 5,518,824
=========== ===========
Capital at 12/31/98......................................... $25,032,872 $70,347,091
=========== ===========
</TABLE>

<TABLE>
<CAPTION>
GROWTH AND REAL STRATEGIC
INCOME ESTATE STOCK
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Beginning Shares.................................... 966,202 18,894,267 246,576
Sales............................................... 1,366,787 6,057,194 1,699,551
Dividend Reinvestment............................... 1,387 326,458 557
Repurchases......................................... (108,731) (10,099,763) (152,447)
----------- ------------ -----------
Ending Shares....................................... 2,225,645 15,178,156 1,794,237
=========== ============ ===========
Capital at 12/31/98................................. $28,125,068 $211,310,668 $19,933,653
=========== ============ ===========
</TABLE>

4. INVESTMENT TRANSACTIONS
During the period, the cost of purchases and proceeds from sales of investments,
excluding forward commitment transactions and short-term investments, were:

<TABLE>
<CAPTION>
GROWTH
EMERGING AND REAL STRATEGIC
COMSTOCK GROWTH ENTERPRISE INCOME ESTATE STOCK
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Purchases............ $1,013,196 $66,525,821 $83,991,037 $24,570,106 $29,968,084 $10,101,318
Sales................ 86,725 33,585,181 81,472,455 16,261,326 58,842,354 5,013,653
</TABLE>

5. DERIVATIVE FINANCIAL INSTRUMENTS
A derivative financial instrument in very general terms refers to a security
whose value is "derived" from the value of an underlying asset, reference rate
or index.
The Portfolios have a variety of reasons to use derivative instruments, such
as to attempt to protect the Portfolios against possible changes in the market
value of its portfolio, manage the Portfolio's effective yield, foreign currency
exposure, maturity and duration or to generate potential gain. All of the
Portfolios' holdings, including derivative instruments, are marked to market
each day with the change in value reflected in unrealized appreciation/
depreciation. Upon disposition, a realized gain or loss is recognized
accordingly, except when taking delivery of a security underlying a futures or
forward contract. In these instances, the recognition of gain or loss is
postponed until the disposal of the security underlying the futures or forward
contract.
Summarized below are the specific types of derivative financial instruments
used by the Portfolios.

A. FUTURES CONTRACTS--A futures contract is an agreement involving the delivery
of a particular asset on a specified future date at an agreed upon price. The
fixed income Portfolios generally invest in futures on U.S. Treasury Bonds and
Notes. The equity Portfolios generally invest in S&P 500 Index Futures. Upon
entering into futures contracts, the Portfolios maintain, in a segregated
account with its custodian, cash or liquid securities with a value equal to its

60
<PAGE> 62
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

obligation under the futures contracts. During the period the futures contract
is open, payments are received from or made to the broker based upon changes in
the value of the contract (the variation margin). The risk of loss associated
with a futures contract is in excess of the variation margin reflected on the
Statement of Assets and Liabilities.
Transactions in futures contracts for Growth and Income for the six months
ended June 30, 1999, were as follows:

<TABLE>
<CAPTION>
NUMBER OF CONTRACTS
- ---------------------------------------------------------------------------------
<S> <C>
Outstanding at December 31, 1998............................ 5
Futures Opened.............................................. 6
Futures Closed.............................................. (8)
--
Outstanding at June 30, 1999................................ 3
==
</TABLE>

The futures contracts outstanding at June 30, 1999, and the descriptions and
unrealized appreciation/depreciation are as follows:

<TABLE>
<CAPTION>
UNREALIZED
NUMBER OF APPRECIATION/
CONTRACTS DEPRECIATION
- ----------------------------------------------------------------------------------------
<S> <C> <C>
GROWTH AND INCOME
LONG CONTRACTS
S&P 500 Index Futures -- September 1999
(Current notional value of $345,425 per contract)...... 3 $52,725
== =======
</TABLE>

B. FORWARD COMMITMENTS--Real Estate may trade certain securities under the terms
of forward commitments, whereby the settlement for payment and delivery occurs
at a specified future date. Forward commitments are privately negotiated
transactions between the Portfolio and dealers. Upon executing a forward
commitment and during the period of obligation, the Portfolio maintains
collateral of cash or securities in a segregated account with its custodian in
an amount sufficient to relieve the obligation. If the intent of the Portfolio
is to accept delivery of a security traded under a forward bond purchase
commitment, the commitment is recorded as a long-term purchase. For forward bond
purchase commitments for which security settlement is not intended by the
Portfolio, changes in the value of the commitment are recognized by marking the
commitment to market on a daily basis with changes in value reflected as a
component of unrealized appreciation/depreciation. Upon the settlement of the
contract, a realized gain or loss is recognized and is included as a component
of realized gain/loss on forwards. Purchasing securities on a forward commitment
involves a risk that the market value at the time of delivery may be lower than
the agreed upon purchase price resulting in an unrealized loss. Selling
securities on a forward commitment involves different risks and can result in
losses more significant than those arising from the purchase of such securities.
During the term of the commitment, the Portfolio may sell the forward commitment
and enter into a new forward commitment, the effect of which is to extend the
settlement date. In addition, the Portfolio may occasionally close such forward
commitments prior to delivery. Risks may arise as a result of the potential
liability of the counterparties to meet the terms of their contracts. There were
no forward bond commitments outstanding as of June 30, 1999.

61
<PAGE> 63

VAN KAMPEN FUNDS

EQUITY FUNDS

Domestic
Aggressive Equity
Aggressive Growth
American Value
Comstock
Emerging Growth
Enterprise
Equity Growth
Equity Income
Growth
Growth and Income
Harbor
Pace
Real Estate Securities
Small Cap Value
Technology
Utility
Value
Global/International
Asian Growth
Emerging Markets
European Equity
Global Equity
Global Equity Allocation
Global Franchise
Global Managed Assets
International Magnum
Latin American

FIXED-INCOME FUNDS

Income
Corporate Bond
Global Fixed Income
Global Government Securities
Government Securities
High Income Corporate Bond
High Yield
High Yield & Total Return
Limited Maturity Government
Short-Term Global Income
Strategic Income
U.S. Government
U.S. Government Trust for Income
Worldwide High Income
Tax Exempt Income
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
Capital Preservation
Reserve
Tax Free Money

SENIOR LOAN FUNDS

Prime Rate Income Trust
Senior Floating Rate

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 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

62
<PAGE> 64

VAN KAMPEN LIFE INVESTMENT TRUST

BOARD OF TRUSTEES

J. MILES BRANAGAN
JERRY D. CHOATE
RICHARD M. DEMARTINI*
LINDA HUTTON HEAGY
R. CRAIG KENNEDY
JACK E. NELSON
DON G. POWELL*
PHILLIP B. ROONEY
FERNANDO SISTO
WAYNE W. WHALEN* - Chairman
SUZANNE H. WOOLSEY, PH.D.
PAUL G. YOVOVICH

RICHARD F. POWERS, III*
President

DENNIS J. MCDONNELL*
Executive Vice President
and Chief Investment Officer

A. THOMAS SMITH III*
Vice President and Secretary

JOHN L. SULLIVAN*
Vice President, Treasurer and
Chief Financial Officer

CURTIS W. MORELL*
Vice President and Chief Accounting Officer

TANYA M. LODEN*
Controller

PETER W. HEGEL*
PAUL R. WOLKENBERG*
EDWARD C. WOOD, III*
Vice Presidents

INVESTMENT ADVISER

VAN KAMPEN
ASSET MANAGEMENT INC.
1 Parkview Plaza
P.O. Box 5555
Oakbrook Terrace, IL 60181-5555

INVESTMENT SUBADVISOR
(MORGAN STANLEY REAL ESTATE
SECURITIES PORTFOLIO)

MORGAN STANLEY DEAN WITTER INVESTMENT
MANAGEMENT INC.
1585 Broadway
New York, NY 10036

DISTRIBUTOR

VAN KAMPEN FUNDS INC.
1 Parkview Plaza
P.O. Box 5555
Oakbrook Terrace, IL 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.

(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.

63
<PAGE> 65

YEAR 2000 READINESS DISCLOSURE

Like other mutual funds, financial and business organizations and individuals
around the world, the Portfolios could be adversely affected if the computer
systems used by the Portfolio'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
Portfolio'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 Portfolio'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 Portfolio. In addition, the Year 2000 Problem may adversely affect the
markets and the issuers of securities in which the Portfolio may invest that, in
turn, may adversely affect the net asset value of the Portfolio. Improperly
functioning trading systems may result in settlement problems and liquidity
issues. In addition, corporate and governmental data processing errors may
result in production problems for individual companies or issuers and overall
economic uncertainty. Earnings of individual issuers will be affected by
remediation costs, which may be substantial and may be reported inconsistently
in U.S. and foreign financial statements. Accordingly, the Portfolio'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.

64
<PAGE> 66

TABLE OF CONTENTS

<TABLE>
<S> <C>
Letter to Policyholders.......................... 1
Economic Snapshot................................ 2
Asset Allocation Portfolio Performance Results... 3
Portfolio Management Review.................... 4
Portfolio of Investments....................... 6
Statement of Assets and Liabilities............ 9
Statement of Operations........................ 10
Statement of Changes in Net Assets............. 11
Financial Highlights........................... 12
Domestic Income Portfolio Performance Results.... 13
Portfolio Management Review.................... 14
Portfolio of Investments....................... 16
Statement of Assets and Liabilities............ 18
Statement of Operations........................ 19
Statement of Changes in Net Assets............. 20
Financial Highlights........................... 21
Global Equity Portfolio Performance Results...... 22
Portfolio Management Review.................... 23
Portfolio of Investments....................... 25
Statement of Assets and Liabilities............ 27
Statement of Operations........................ 28
Statement of Changes in Net Assets............. 29
Financial Highlights........................... 30
Government Portfolio Performance Results......... 31
Portfolio Management Review.................... 32
Portfolio of Investments....................... 34
Statement of Assets and Liabilities............ 36
Statement of Operations........................ 37
Statement of Changes in Net Assets............. 38
Financial Highlights........................... 39
Money Market Portfolio Management Review......... 40
Portfolio of Investments....................... 42
Statement of Assets and Liabilities............ 43
Statement of Operations........................ 44
Statement of Changes in Net Assets............. 45
Financial Highlights........................... 46
Notes to Financial Statements.................... 47
</TABLE>

LIT SAR ETY 8/99
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE.
<PAGE> 67

LETTER TO POLICYHOLDERS

July 20, 1999

Sincerely,

[SIG]
Richard F. Powers, III

Chairman
Van Kampen Asset Management Inc.

[SIG]
Dennis J. McDonnell

President
Van Kampen Asset Management Inc.

1
<PAGE> 68

ECONOMIC SNAPSHOT

INTEREST RATES AND INFLATION
June 30, 1997, through June 30, 1999
[GRAPH]
<TABLE>
<CAPTION>
INTEREST RATES INFLATION
-------------- ---------
<S> <C> <C>
Jun 1997 6.5000 2.3000
6.0000 2.2000
5.5000 2.2000
Sep 1997 6.2500 2.2000
5.7500 2.1000
5.6875 1.8000
Dec 1997 6.5000 1.7000
5.5625 1.6000
5.6250 1.4000
Mar 1998 6.1250 1.4000
5.6250 1.4000
5.6875 1.7000
Jun 1998 6.0000 1.7000
5.5625 1.7000
5.9375 1.6000
Sep 1998 5.7500 1.5000
5.2500 1.5000
4.8750 1.5000
Dec 1998 4.0000 1.6000
4.8125 1.7000
4.8750 1.6000
Mar 1999 5.1250 1.7000
4.9375 2.3000
4.5000 2.1000
Jun 1999 4.0000 2.0000
</TABLE>

2
<PAGE> 69

PERFORMANCE RESULTS FOR THE PERIOD ENDED JUNE 30, 1999

VAN KAMPEN LIFE INVESTMENT TRUST

ASSET ALLOCATION PORTFOLIO

<TABLE>
<S> <C>
TOTAL RETURNS
Six-month total return based on NAV(1)...................... 1.66%
One-year total return based on NAV(1)....................... 8.29%
Five-year average annual total return based on NAV(1)....... 16.85%
Ten-year average annual total return based on NAV(1)........ 12.66%
Life-of-Portfolio average annual total return based on
NAV(1)...................................................... 11.79%
Commencement date........................................... 06/30/87
</TABLE>

(1)Total return based on net asset value (NAV) assumes an investment at the
beginning of the period indicated, reinvestment of all distributions for the
period, and sale of all shares at the end of the period, all at NAV.

Total returns do not include any charges, expenses, or fees imposed by an
insurance company at the underlying fund or separate account levels. If the
returns included the effect of these additional charges, the returns would have
been lower.

Market forecasts provided in this report may not necessarily come to pass.

The Portfolio being offered is through a variable annuity contract.

3
<PAGE> 70

PORTFOLIO MANAGEMENT REVIEW

ASSET ALLOCATION PORTFOLIO

The following is an interview with the portfolio management team of the Van
Kampen Life Investment Trust--Asset Allocation Portfolio. The team previously
consisted of John M. Cunniff and Walter W. Stabell III, portfolio comanagers. As
of June 1, 1999, the Portfolio has been managed by John M. Cunniff and C. Kelly
Gilbert, portfolio comanagers, and Stephen L. Boyd, chief investment officer for
equity investments.

Q CAN YOU DESCRIBE THE STOCK AND BOND MARKET ENVIRONMENTS FOR THE PORTFOLIO
DURING THE REPORTING PERIOD?

A As has been its trademark recently, the stock market was volatile during
the first six months of 1999. The Dow Jones Industrial Average passed two
significant milestones during the reporting period--10,000 in late March
and 11,000 in early May. Investors' anticipation of an interest-rate increase
placed downward pressure on the stock market, particularly among growth stocks.
In response to this shift from growth investments, investors began to favor
cyclical stocks. The Federal Reserve did indeed raise interest rates on the last
day of the reporting period, but, because the increase was widely expected, the
effect on stock prices was limited.
The first quarter of 1999 marked a recovery from the October 1998 meltdown
in the fixed-income market, as investors gained confidence in the strength of
the economy and modest inflation. Consequently, yield spreads narrowed between
Treasuries and other fixed-income products (such as government, corporate, and
high-yield securities). However, this good news for fixed-income products was
quelled in the second quarter by a slight surge in inflation and warnings of
interference from the Federal Reserve Board. This prompted yield spreads to
widen once again, although not to the record-high levels seen last fall.

Q GIVEN THIS ENVIRONMENT, WHAT WAS YOUR STRATEGY IN SEEKING TO MEET THE
PORTFOLIO'S OBJECTIVE?

A The Portfolio seeks to provide high total return through investments in
stocks, bonds, and money market securities. To achieve this goal, we first
decide on an overall asset allocation based on expectations for total
returns for stocks, bonds, and cash. After deciding the asset allocation, we
invest the recommended portion of stocks of the Portfolio in large,
well-established companies with above-average growth rates. We select bonds
based on a combination of their fixed-income and capital-appreciation potential.
During the reporting period, we reduced the Portfolio's exposure to the
equity market and added to cash and bonds. By June 30, the Portfolio's asset
allocation was approximately 43 percent stocks, 39 percent bonds, and 18 percent
cash. We made this change after consulting our asset allocation models, which
took into account a rise in both the stock market and interest rates during the
period. The Portfolio's performance did not benefit in the short term from this
asset allocation decision, although we are hopeful that this situation will help
the Portfolio's return in the long run.

Q WHICH STOCKS IN THE PORTFOLIO PERFORMED ESPECIALLY WELL?

A Because of the Portfolio's bottom-up approach to stock-selection, the
performance of individual stocks can have a great impact on the
Portfolio's overall return. For much of the reporting period, blue-chip
stocks performed very well amid considerable market volatility. In
general, the stocks whose performance most helped the Portfolio's return were in
the technology area. The growth of the Internet and the promise of increased
business productivity fueled new purchases of technology equipment.
Leading software-maker Microsoft continued on a path of impressive growth,
despite being involved in ongoing litigation about its business practices. The
company's stock appreciated 30 percent during the reporting period and helped
the Portfolio's performance considerably. In the financial services area,
Citigroup was also a strong contributor to the Portfolio's return, aided by the
strong recovery in the financial markets following the economic crises in the
third quarter of 1998.
Keep in mind that not all stocks in the Portfolio performed as favorably,
and there is no guarantee that these stocks will perform as well in the future.

4
<PAGE> 71

Q DID ANY STOCKS HURT THE PORTFOLIO'S RETURN?

A Although a number of stocks failed to meet our expectations, the single
greatest negative impact on the Portfolio's return could be found in the
poor performance of Philip Morris. This company's stock experienced
significant pressure during the first half of 1999, as investors became
increasingly concerned about how this and other tobacco companies would respond
to various lawsuits.

Q HOW DID YOU MANAGE THE BOND PORTION OF THE PORTFOLIO?

A To maintain diversification, enhance liquidity, and seek to reduce risk,
we continued to allocate the Portfolio's assets across a variety of
sectors within the corporate bond market. We continued to focus on
investment-grade rated securities (bonds rated BBB or higher) with
maturities of 10 to 30 years.
The duration of the Portfolio is currently 8.05 years. This duration, which
is longer than our benchmark, reflects our belief that interest rates could
fall. Interest rates, however, rose throughout much of the period, and this was
not a favorable environment for the Portfolio. Duration is a measurement used to
quantify the sensitivity of a bond's price to changes in interest rates.
Typically, portfolios with longer durations perform better when rates are
declining, and portfolios with shorter durations perform better when interest
rates are rising.

Q HOW DID THE PORTFOLIO PERFORM DURING THE LAST SIX MONTHS?

A Because of the stock market's healthy performance and the rise in interest
rates during the reporting period, the Portfolio's conservative asset
allocation did not help relative performance. The Portfolio achieved a
six-month total return of 1.66 percent(1) as of June 30, 1999. By
comparison, the Standard & Poor's 500 Index returned 12.36 percent, and the
Lipper Flexible Portfolio Index, which most closely resembles the Portfolio,
returned 5.73 percent. The S&P 500 Index is a broad-based, unmanaged index that
reflects the general performance of the stock market, and the Lipper Flexible
Portfolio Fund Index reflects the average performance of the 30 largest flexible
portfolio funds.
These indices are statistical composites that do not include any commissions
or sales charges that would be paid by an investor purchasing the securities or
investments represented by these indices. Past performance is no guarantee of
future results. Please refer to the chart and footnotes on page 3 for additional
Portfolio performance results.

Q WHAT IS YOUR OUTLOOK FOR THE PORTFOLIO FOR THE NEXT SIX MONTHS?

A We anticipate continued market volatility. If the Fed continues to raise
interest rates, as it did on the last day of the reporting period, we
expect cyclical stocks to continue to outperform traditional growth
stocks. We are also monitoring the year 2000 problem, because investors'
reaction to the situation could have an impact on the stock market's stability.
Barring major market changes, we believe that maintaining our current asset
allocation may enable us to achieve solid long-term returns.

John M. Cunniff
Portfolio Comanager
Asset Allocation Portfolio

C. Kelly Gilbert
Portfolio Comanager
Asset Allocation Portfolio

Stephen L. Boyd
Chief Investment Officer
Equity Investments

5
<PAGE> 72

ASSET ALLOCATION PORTFOLIO PORTFOLIO OF INVESTMENTS

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Description Shares Market Value
- ---------------------------------------------------------
<S> <C> <C>
COMMON STOCKS 42.9%
CONSUMER DISTRIBUTION 4.1%
Albertsons, Inc. .............. 1,700 $ 87,656
Best Buy Co., Inc. (a)......... 1,600 108,000
Cardinal Health, Inc. ......... 300 19,238
Circuit City Stores-Circuit
City Group................... 800 74,400
Dayton Hudson Corp. ........... 900 58,500
Family Dollar Stores, Inc. .... 3,000 72,000
Federated Department Stores,
Inc. (a)..................... 1,200 63,525
Home Depot, Inc. .............. 1,300 83,769
Kmart Corp. (a)................ 9,800 161,087
Kroger Co. (a)................. 4,400 122,925
Lexmark International Group,
Inc., Class A (a)............ 2,200 145,337
Lowe's Cos., Inc. ............. 1,700 96,369
May Department Stores Co. ..... 4,150 169,631
Office Depot, Inc. (a)......... 4,800 105,900
Safeway, Inc. (a).............. 1,900 94,050
Sears Roebuck & Co. ........... 2,900 129,231
TJX Cos., Inc. ................ 5,900 196,544
Toys 'R' Us, Inc. (a).......... 1,400 28,963
Wal-Mart Stores, Inc. ......... 10,400 501,800
-----------
2,318,925
-----------
CONSUMER DURABLES 0.8%
Dana Corp. .................... 400 18,425
Delphi Automotive Systems
Corp. ....................... 1,188 22,052
Ford Motor Co. ................ 4,700 265,257
General Motors Corp. .......... 1,700 112,200
-----------
417,934
-----------
CONSUMER NON-DURABLES 3.7%
Anheuser Busch Cos., Inc. ..... 3,600 255,375
Coca Cola Co. ................. 2,800 175,000
Dial Corp. .................... 2,600 96,687
General Mills Inc. ............ 500 40,188
H.J. Heinz & Co. .............. 1,600 80,200
Jones Apparel Group, Inc.
(a).......................... 1,500 51,469
Kimberly Clark Corp. .......... 3,900 222,300
Loews Corp. ................... 1,200 94,950
Pepsi Bottling Group, Inc. .... 3,400 78,413
PepsiCo, Inc. ................. 7,000 270,812
Philip Morris Cos., Inc. ...... 8,700 349,631
Procter & Gamble Co. .......... 700 62,475
Tommy Hilfiger Corp. (a)....... 1,800 132,300
Tyson Foods, Inc., Class A..... 4,500 101,250
Unilever NV -- ADR
(Netherlands)................ 1,139 79,445
-----------
2,090,495
-----------
CONSUMER SERVICES 1.3%
Brinker International, Inc.
(a).......................... 3,800 103,312
CBS Corp. ..................... 1,600 69,500
Comcast Corp., Class A......... 2,000 76,875
Cox Communications, Inc., Class
A (a)........................ 1,850 68,103
Gannett Co., Inc. ............. 1,300 92,788
Infinity Broadcasting Corp.,
Class A (a).................. 800 23,800
</TABLE>

<TABLE>
<CAPTION>
Description Shares Market Value
- ---------------------------------------------------------
<S> <C> <C>
CONSUMER SERVICES (CONTINUED)
New York Times Co., Class A.... 2,200 $ 80,988
Time Warner, Inc............... 2,700 198,450
-----------
713,816
-----------
ENERGY 3.2%
Ashland, Inc................... 1,700 68,213
BP Amoco PLC -- ADR (United
Kingdom)..................... 668 72,478
Coastal Corp. ................. 4,900 196,000
Columbia Energy Group.......... 800 50,150
El Paso Energy Corp. .......... 2,100 73,894
Enron Corp. ................... 1,300 106,275
Exxon Corp. ................... 2,200 169,675
McDermott International,
Inc. ........................ 3,100 87,575
Mobil Corp. ................... 3,900 386,100
Royal Dutch Petroleum
Co. -- ADR (Netherlands)..... 2,200 132,550
Sonat, Inc. ................... 2,700 89,437
Total SA -- ADR (France)....... 256 16,496
Transocean Offshore, Inc. ..... 5,100 133,875
Ultramar Diamond Shamrock
Corp. ....................... 2,000 43,625
USX -- Marathon Group.......... 5,400 175,837
-----------
1,802,180
-----------
FINANCE 6.2%
A.G. Edwards, Inc. ............ 400 12,900
Allstate Corp. ................ 4,200 150,675
Ambac Financial Group, Inc. ... 2,200 125,675
American Express Co. .......... 600 78,075
American General Corp. ........ 2,800 211,050
American International Group,
Inc. ........................ 1,237 144,806
Bank One Corp. ................ 2,934 174,756
BankAmerica Corp. ............. 2,481 181,888
BankBoston Corp. .............. 1,600 81,800
Bear Stearns Cos., Inc. ....... 1,454 67,975
Charles Schwab Corp. .......... 1,000 109,875
Chase Manhattan Corp. ......... 3,500 303,187
CIGNA Corp. ................... 600 53,400
Citigroup, Inc. ............... 9,525 452,437
Conseco, Inc. ................. 3,500 106,531
Countrywide Credit Industries,
Inc. ........................ 3,600 153,900
Federal Home Loan Mortgage
Corp. ....................... 700 40,600
Federal National Mortgage
Assn. ....................... 3,800 259,825
First Union Corp. ............. 1,400 65,800
Fleet Financial Group, Inc. ... 2,900 128,688
Lehman Brothers Holdings,
Inc. ........................ 1,800 112,050
Lincoln National Corp. ........ 1,800 94,163
MBNA Corp. .................... 2,700 82,688
Merrill Lynch & Co., Inc. ..... 700 55,956
Nationwide Financial Services,
Inc., Class A................ 400 18,100
Providian Financial Corp. ..... 1,300 121,550
Radian Group Inc............... 2,000 97,625
Torchmark, Inc. ............... 300 10,238
-----------
3,496,213
-----------
</TABLE>

See Notes to Financial Statements

6
<PAGE> 73
ASSET ALLOCATION PORTFOLIO PORTFOLIO OF INVESTMENTS (CONTINUED)

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Description Shares Market Value
- ---------------------------------------------------------
<S> <C> <C>
HEALTHCARE 5.1%
Abbott Laboratories, Inc. ..... 6,500 $ 295,750
Aetna, Inc. ................... 1,400 125,212
American Home Products
Corp. ....................... 500 28,750
Bausch & Lomb, Inc. ........... 800 61,200
Becton, Dickinson & Co. ....... 4,500 135,000
Bristol-Myers Squibb Co. ...... 5,600 394,450
Johnson & Johnson, Inc. ....... 3,100 303,800
Medtronic, Inc. ............... 900 70,088
Merck & Co., Inc. ............. 3,400 251,600
Mylan Laboratories, Inc. ...... 3,600 95,400
PacifiCare Health Systems,
Class B (a).................. 800 57,550
Pfizer, Inc. .................. 1,900 208,525
Pharmacia & Upjohn, Inc. ...... 2,700 153,394
Rhone-Poulenc, SA, Class A --
ADR (France)................. 1,300 59,963
Schering-Plough Corp. ......... 2,800 148,400
Tenet Healthcare Corp. (a)..... 700 12,994
Warner-Lambert Co. ............ 3,900 270,562
Watson Pharmaceuticals, Inc.
(a).......................... 1,300 45,581
Wellpoint Health Networks,
Inc., Class A (a)............ 1,900 161,262
-----------
2,879,481
-----------
PRODUCER MANUFACTURING 2.4%
Cummins Engine Co., Inc. ...... 1,700 97,113
FMC Corp. (a).................. 800 54,650
General Electric Co. .......... 5,400 610,200
Honeywell, Inc. ............... 900 104,287
Ingersoll-Rand Co. ............ 2,400 155,100
Johnson Controls, Inc. ........ 1,000 69,313
Navistar International Corp.
(a).......................... 2,100 105,000
Parker-Hannifin Corp. ......... 600 27,450
TRW, Inc. ..................... 800 43,900
United Technologies Corp. ..... 890 63,802
-----------
1,330,815
-----------
RAW MATERIALS/PROCESSING
INDUSTRIES 1.0%
Boise Cascade Corp. ........... 2,900 124,337
British Steel PLC -- ADR
(United Kingdom)............. 1,900 49,519
Champion International
Corp. ....................... 900 43,088
Dow Chemical Co. .............. 800 101,500
Du Pont (E. I.) de Nemours &
Co. ......................... 2,600 177,612
Mead Corp. .................... 900 37,575
USX -- U.S. Steel, Inc. ....... 1,800 48,600
-----------
582,231
-----------
TECHNOLOGY 8.7%
ADC Telecommunications, Inc.
(a).......................... 1,200 54,675
America Online, Inc. (a)....... 1,790 197,795
Apple Computer, Inc. .......... 3,600 166,725
BMC Software, Inc. (a)......... 1,200 64,800
Cisco Systems, Inc. (a)........ 6,400 411,600
Compuware Corp. (a)............ 5,000 159,062
</TABLE>

<TABLE>
<CAPTION>
Description Shares Market Value
- ---------------------------------------------------------
<S> <C> <C>
TECHNOLOGY (CONTINUED)
Dell Computer Corp. (a)........ 2,900 $ 107,300
Electronics for Imaging, Inc.
(a).......................... 800 41,100
EMC Corp. (a).................. 1,000 55,000
Gateway, Inc. (a).............. 2,800 165,200
General Dynamics Corp. ........ 800 54,800
Hewlett Packard Co. ........... 3,900 391,950
Intel Corp. ................... 8,900 529,550
International Business Machines
Corp. ....................... 3,600 465,300
Lockheed Martin Corp. ......... 2,500 93,125
Lucent Technologies, Inc. ..... 7,100 478,806
Mercury Interactive Corp.
(a).......................... 900 31,838
Microsoft Corp. (a)............ 10,300 928,931
Nortel Networks Corp. ......... 800 69,450
Oracle Corp. (a)............... 4,600 170,775
Seagate Technology, Inc. (a)... 4,600 117,875
SunGard Data Systems, Inc.
(a).......................... 2,300 79,350
Xerox Corp. ................... 1,000 59,063
-----------
4,894,070
-----------
TRANSPORTATION 0.0%
AMR Corp. (a).................. 300 20,475
-----------
UTILITIES 6.4%
Ameritech Corp. ............... 4,800 352,800
AT & T Corp. .................. 6,001 334,931
BEC Energy..................... 3,700 152,625
BellSouth Corp. ............... 4,500 210,937
CMS Energy Group............... 500 20,938
DTE Energy Co. ................ 3,600 144,000
Entergy Corp. ................. 2,100 65,625
FPL Group, Inc. ............... 600 32,775
GPU, Inc. ..................... 3,400 143,437
GTE Corp. ..................... 5,800 439,350
Idacorp, Inc. ................. 2,700 85,050
MCI WorldCom, Inc. (a)......... 4,800 413,100
Nextel Communications
Inc.(a) ..................... 2,550 127,978
OGE Energy Corp. .............. 3,400 80,750
P G & E Corp. ................. 2,200 71,500
Peco Energy Co. ............... 1,800 75,375
Pinnacle West Capital Corp. ... 1,800 72,450
Public Service Co. of New
Mexico....................... 3,000 59,625
Qwest Communications
International, Inc. (a)...... 5,400 178,537
Reliant Energy, Inc. .......... 4,700 129,838
Sprint Corp. .................. 2,000 105,625
Texas Utilities Co. ........... 4,200 173,250
U.S. WEST Communications
Group........................ 700 41,125
Vodafone AirTouch Group
PLC -- ADR (United
Kingdom)..................... 450 88,650
-----------
3,600,271
-----------
TOTAL COMMON STOCKS 42.9%................ 24,146,906
-----------
</TABLE>

See Notes to Financial Statements

7
<PAGE> 74

ASSET ALLOCATION PORTFOLIO PORTFOLIO OF INVESTMENTS (CONTINUED)

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- -----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
CORPORATE DEBT 26.4%
CONSUMER NON-DURABLES 2.4%
Pepsi Bottling Holdings, Inc., 144A--Private Placement
$1,500 (b)......................................................... 5.625% 02/17/09 $ 1,365,344
-----------
CONSUMER SERVICES 1.8%
1,000 Cox Communications, Inc. ................................... 6.875 06/15/05 989,570
-----------
ENERGY 3.8%
1,000 Burlington Resources, Inc. ................................. 9.125 10/01/21 1,156,210
1,000 Enron Corp. ................................................ 6.875 10/15/07 979,697
-----------
2,135,907
-----------
FINANCE 1.6%
1,000 BankAmerica Corp. .......................................... 5.875 02/15/09 918,920
-----------
TECHNOLOGY 7.0%
1,000 Computer Associates International, Inc. .................... 6.375 04/15/05 949,455
1,000 International Business Machines Corp. ...................... 5.375 02/01/09 914,570
1,000 Philips Electronics NV (Netherlands)........................ 8.375 09/15/06 1,065,085
1,000 Raytheon Co. ............................................... 6.750 08/15/07 993,075
-----------
3,922,185
-----------
TRANSPORTATION 2.7%
1,000 Norfolk Southern Corp. ..................................... 7.700 05/15/17 1,028,610
500 Southwest Airlines Co. ..................................... 7.375 03/01/27 486,429
-----------
1,515,039
-----------
UTILITIES 7.1%
1,000 360 Communications Co. ..................................... 7.600 04/01/09 1,040,449
1,000 MCI WorldCom, Inc. ......................................... 6.950 08/15/28 945,469
1,000 Sprint Capital Corp. ....................................... 6.125 11/15/08 933,566
1,000 Texas Utilities Electric Co. ............................... 8.250 04/01/04 1,069,227
-----------
3,988,711
-----------
TOTAL CORPORATE DEBT ............................................................ 14,835,676
-----------
GOVERNMENT AND AGENCY OBLIGATIONS 1.8%
1,000 Providence of Nova Scotia (Canada).......................... 7.250 07/27/13 1,000,430
-----------
UNITED STATES GOVERNMENT OBLIGATIONS 10.7%
2,000 U.S. Treasury Bond.......................................... 7.125 02/15/23 2,213,220
3,000 U.S. Treasury Bond.......................................... 7.250 05/15/16 3,304,050
500 U.S. Treasury Note.......................................... 7.250 08/15/04 531,775
-----------
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS........................................ 6,049,045
-----------
TOTAL LONG-TERM INVESTMENTS 81.8%
(Cost $41,216,577)....................................................................... 46,032,057
REPURCHASE AGREEMENT 17.6%
Goldman Sachs ($9,865,000 par collateralized by U.S. Government obligations in a
pooled cash account, dated 06/30/99, to be sold on 07/01/99 at $9,866,329)
(Cost $9,865,000)................................................................. 9,865,000
-----------
TOTAL INVESTMENTS 99.4%
(Cost $51,081,577)....................................................................... 55,897,057
OTHER ASSETS IN EXCESS OF LIABILITIES 0.6%................................................ 351,547
-----------
NET ASSETS 100.0%......................................................................... $56,248,604
===========
</TABLE>

(a) Non-income producing security as this stock currently does not declare
dividends.

(b) 144A securities are those which are exempt from registration under Rule 144A
of the Securities Act of 1933. These securities may only be resold in
transactions exempt from registration which are normally transactions with
qualified institutional buyers.

ADR--American Depositary Receipt.

See Notes to Financial Statements

8
<PAGE> 75

ASSET ALLOCATION PORTFOLIO STATEMENT OF ASSETS AND LIABILITIES

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Total Investments, including a repurchase agreement of
$9,865,000 (Cost $51,081,577)............................. $55,897,057
Cash........................................................ 9,095
Receivables:
Interest.................................................. 403,478
Investments Sold.......................................... 149,129
Dividends................................................. 29,498
Portfolio Shares Sold..................................... 618
Other....................................................... 44,972
-----------
Total Assets.......................................... 56,533,847
-----------
LIABILITIES:
Payables:
Investments Purchased..................................... 116,112
Shareholder Reports....................................... 15,939
Investment Advisory Fee................................... 13,836
Distributor and Affiliates................................ 5,638
Portfolio Shares Repurchased.............................. 2,072
Trustees' Deferred Compensation and Retirement Plans........ 115,381
Accrued Expenses............................................ 16,265
-----------
Total Liabilities..................................... 285,243
-----------
NET ASSETS.................................................. $56,248,604
===========
NET ASSETS CONSIST OF:
Capital (Par value of $.01 per share with an unlimited
number of shares authorized).............................. $46,712,526
Net Unrealized Appreciation................................. 4,815,480
Accumulated Net Realized Gain............................... 3,862,723
Accumulated Undistributed Net Investment Income............. 857,875
-----------
NET ASSETS.................................................. $56,248,604
===========
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER
SHARE
(Based on net assets of $56,248,604 and 4,777,080 shares
of beneficial interest issued and outstanding)............ $ 11.78
===========
</TABLE>

See Notes to Financial Statements

9
<PAGE> 76

ASSET ALLOCATION PORTFOLIO STATEMENT OF OPERATIONS

For the Six Months Ended June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

INVESTMENT INCOME:
Interest.................................................... $ 852,919
Dividends................................................... 244,491
-----------
Total Income............................................ 1,097,410
-----------
EXPENSES:
Investment Advisory Fee..................................... 145,731
Custody..................................................... 27,969
Trustees' Fees and Related Expenses......................... 20,665
Accounting.................................................. 13,138
Shareholder Reports......................................... 9,593
Legal....................................................... 3,111
Other....................................................... 18,974
-----------
Total Expenses.......................................... 239,181
Investment Advisory Fee Reduction....................... 62,275
Less Credits Earned on Overnight Cash Balances.......... 2,176
-----------
Net Expenses............................................ 174,730
-----------
NET INVESTMENT INCOME....................................... $ 922,680
===========
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Gain........................................... $ 3,921,068
-----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 8,728,544
End of the Period:
Investments............................................. 4,815,480
-----------
Net Unrealized Depreciation During the Period............... (3,913,064)
-----------
NET REALIZED AND UNREALIZED GAIN............................ $ 8,004
===========
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $ 930,684
===========
</TABLE>

See Notes to Financial Statements

10
<PAGE> 77

ASSET ALLOCATION PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS

For the Six Months Ended June 30, 1999
and the Year Ended December 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 1999 December 31, 1998
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income....................................... $ 922,680 $ 1,954,643
Net Realized Gain........................................... 3,921,068 5,930,830
Net Unrealized Appreciation/Depreciation During the
Period.................................................... (3,913,064) 1,114,702
----------- -----------
Change in Net Assets from Operations........................ 930,684 9,000,175
----------- -----------
Distributions from Net Investment Income.................... (1,970,700) (67,589)
Distributions from Net Realized Gain........................ (5,938,317) (1,826,978)
----------- -----------
Total Distributions......................................... (7,909,017) (1,894,567)
----------- -----------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES......... (6,978,333) 7,105,608
----------- -----------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold................................... 1,060,760 4,124,365
Net Asset Value of Shares Issued Through Dividend
Reinvestment.............................................. 7,909,017 1,894,567
Cost of Shares Repurchased.................................. (7,204,104) (14,960,988)
----------- -----------
NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS.......... 1,765,673 (8,942,056)
----------- -----------
TOTAL DECREASE IN NET ASSETS................................ (5,212,660) (1,836,448)
NET ASSETS:
Beginning of the Period..................................... 61,461,264 63,297,712
----------- -----------
End of the Period (Including accumulated undistributed net
investment income of $857,875 and $1,905,895,
respectively)............................................. $56,248,604 $61,461,264
=========== ===========
</TABLE>

See Notes to Financial Statements

11
<PAGE> 78

ASSET ALLOCATION PORTFOLIO FINANCIAL HIGHLIGHTS

The following presents financial highlights for one share of
the Portfolio outstanding throughout the periods indicated. (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Year Ended December 31,
Six Months Ended ------------------------------------
June 30, 1999 1998 1997 1996 1995
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of the Period............. $13.384 $11.910 $11.352 $ 11.64 $ 9.99
------- ------- ------- ------- ------
Net Investment Income.............................. .216 .425 .513 .482 .48
Net Realized and Unrealized Gain/Loss.............. (.015) 1.416 1.897 1.083 2.6425
------- ------- ------- ------- ------
Total from Investment Operations..................... .201 1.841 2.410 1.565 3.1225
------- ------- ------- ------- ------
Less:
Distributions from Net Investment Income........... .451 .013 .518 .478 .4775
Distributions from Net Realized Gain............... 1.359 .354 1.334 1.375 .995
------- ------- ------- ------- ------
Total Distributions.................................. 1.810 .367 1.852 1.853 1.4725
------- ------- ------- ------- ------
Net Asset Value, End of the Period................... $11.775 $13.384 $11.910 $11.352 $11.64
======= ======= ======= ======= ======
Total Return*........................................ 1.66%** 15.67% 21.81% 13.87% 31.36%
Net Assets at End of the Period (In millions)........ $ 56.2 $ 61.5 $ 63.3 $ 63.9 $ 63.0
Ratio of Expenses to Average Net Assets*............. .60% .60% .60% .60% .60%
Ratio of Net Investment Income to Average Net
Assets*............................................ 3.17% 3.17% 3.86% 3.78% 3.85%
Portfolio Turnover................................... 34%** 93% 58% 118% 124%
* If certain expenses had not been assumed by Van
Kampen, Total Return would have been lower and the
ratios would have been as follows:
Ratio of Expenses to Average Net Assets.............. .82% .72% .71% .81% .74%
Ratio of Net Investment Income to Average Net
Assets............................................. 2.95% 3.05% 3.75% 3.57% 3.71%
</TABLE>

** Non-Annualized

See Notes to Financial Statements

12
<PAGE> 79

PERFORMANCE RESULTS FOR THE PERIOD ENDED JUNE 30, 1999

VAN KAMPEN LIFE INVESTMENT TRUST

DOMESTIC INCOME PORTFOLIO

<TABLE>
<S> <C>
TOTAL RETURNS

Six-month total return based on NAV(1)...................... (2.53%)
One-year total return based on NAV(1)....................... (.60%)
Five-year average annual total return based on NAV(1)....... 8.58%
Ten-year average annual total return based on NAV(1)........ 6.46%
Life-of-Portfolio average annual total return based on
NAV(1).................................................... 7.54%
Commencement date........................................... 11/04/87

YIELD

SEC Yield(2)................................................ 7.64%
</TABLE>

(1)Total return based on net asset value (NAV) assumes an investment at the
beginning of the period indicated, reinvestment of all distributions for the
period, and sale of all shares at the end of the period, all at NAV.

(2)SEC Yield is a standardized calculation prescribed by the Securities and
Exchange Commission for determining the amount of net income a portfolio should
theoretically generate for the 30-day period ending June 30, 1999.

See the Comparative Performance section of the current prospectus. Past
performance does not guarantee future results. Investment return and net asset
value will fluctuate with market conditions. Portfolio shares, when redeemed,
may be worth more or less than their original cost.

Market forecasts provided in this report may not necessarily come to pass.

The Portfolio being offered is through a variable annuity contract.

13
<PAGE> 80

PORTFOLIO MANAGEMENT REVIEW

DOMESTIC INCOME PORTFOLIO

The following is an interview with the management team of the Van Kampen Life
Investment Trust--Domestic Income Portfolio. The team was previously led by
Walter W. Stabell III, portfolio manager, and Peter W. Hegel, chief investment
officer for fixed-income investments. As of June 1999, C. Kelly Gilbert has
replaced Mr. Stabell as portfolio manager.

Q WHAT WERE THE MARKET CONDITIONS IN WHICH THE PORTFOLIO OPERATED DURING THE
PAST SIX MONTHS?

A The first quarter of 1999 marked a recovery from the October 1998 meltdown
in the fixed-income market, as investors gained confidence in the strength
of the economy and modest inflation. Consequently, yield spreads narrowed
between Treasuries and other fixed-income products (such as corporate,
high-yield, and government securities). However, this good news for fixed-income
products was quelled in the second quarter by a slight surge in inflation and
warnings of interference from the Federal Reserve Board. This prompted yield
spreads to widen once again, although not to the record-high levels seen last
fall.
As interest rates climbed steadily during the period, the Treasury yield
curve began to flatten, indicating a moderation in the yield difference between
long- and short-term Treasuries. This change became more pronounced as yields on
short-term Treasuries rose to reflect the potential for an increase--or perhaps
a series of increases--in the federal funds rate. At the end of the reporting
period, the Fed approved a 0.25 percent hike while reassuring fixed-income
investors that additional action seemed unnecessary.

Q HOW DID THE CORPORATE BOND MARKET BEHAVE DURING THIS TIME?

A Initially, corporate bonds participated in the cautious recovery of the
fixed-income market. However, concerns about the direction of interest
rates imposed pressure on corporate bonds in the second quarter. For the
six-month period, corporate bonds lagged high-yield bonds but outpaced
Treasuries.
Thanks to the positive economic environment and relatively low interest
rates, new issuance of corporate bonds bounced back from last fall's depressed
levels, giving us a greater range of bonds to consider for purchase. While
issuance during the first half of 1999 was sharply lower than the level seen in
the first half of 1998, it remains strong by historical standards. Finance and
industry were prominent sectors among the new issuance calendar.

Q HOW DID YOU POSITION THE PORTFOLIO IN RESPONSE TO THESE CONDITIONS?

A To maintain diversification, enhance liquidity, and seek to reduce risk,
we continued to allocate the Portfolio's assets across a variety of
sectors within the corporate bond market. All sectors performed negatively
during the period, but some fared better than others. Utilities, in which
we were overweighted, was a good defensive position for us and one of the best
performing sectors. Unfortunately, this benefit to the Portfolio was offset by
our significant weighting in industrial companies, which lagged the market's
recovery.
Managing duration also continued to be an important tactic during the
reporting period. Duration, which is expressed in years, is a measurement of a
portfolio's price sensitivity to changes in interest rates. The longer a
portfolio's duration, the greater the effect of interest rate movements on net
asset value. Typically, portfolios with shorter durations have performed better
in a rising rate environment, while portfolios with longer durations have
performed better when rates are declining. For most of the period, the Domestic
Income Portfolio's duration was held equivalent to or slightly longer than that
of its benchmark, the Lehman Brothers Index of BBB Corporate Bonds. At present,
the Portfolio's duration is 6.4 years, which is comparable to the duration of
6.1 years for the benchmark index.

14
<PAGE> 81

Q HOW DID THE PORTFOLIO PERFORM DURING THE REPORTING PERIOD?

A The Portfolio's return was hurt by the slow recovery of the corporate bond
market. For the six months ended June 30, 1999, the Portfolio achieved a
total return of -2.53 percent(1). Dividends paid and reinvested by the
Portfolio during the period totaled $0.58 per share. By comparison, the Lehman
Brothers Index of BBB Corporate Bonds produced a total return of -1.20 percent
for the same period. Keep in mind that this index is a broad-based, unmanaged
index that reflects the general performance of investment-grade corporate bonds.
This return does not reflect any commissions or fees that would be paid by an
investor purchasing the securities it represents. Of course, past performance is
no guarantee of comparable future results. Please refer to the chart and
footnotes on page 13 for additional performance results.

Q WHAT IS YOUR OUTLOOK FOR THE MONTHS AHEAD?

A We anticipate a moderate slowdown in economic growth in the months ahead,
but do not expect this to have a negative effect on the fixed-income
market unless it becomes a significant downturn. We believe strong
corporate bond issuance will continue over the next few months as issuers catch
up from the relatively quiet market of last fall. Because we believe the
near-term outlook for corporate bonds is good, we'll take advantage of this
issuance to add new securities to the Portfolio.
As we manage the Portfolio going forward, our focus on fundamental, in-depth
research and assessment of corporate bonds will remain unchanged. Looking beyond
the sector, credit rating, or structure of a bond, we'll attempt to identify
those issuers that we believe will remain financially sound and perform well in
a range of market conditions. We will also look for value in out-of-favor areas
of the market in our search for opportunities to diversify the Portfolio and
contribute to its performance.

C. Kelly Gilbert
Portfolio Manager
Domestic Income Portfolio

Peter W. Hegel
Chief Investment Officer
Fixed Income Investments

15
<PAGE> 82

DOMESTIC INCOME PORTFOLIO PORTFOLIO OF INVESTMENTS

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- -----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
CORPORATE DEBT 87.0%
CONSUMER DISTRIBUTION 10.6%
$500 Borden, Inc................................................. 7.875% 02/15/23 $ 407,500
500 Gruma SA De CV, 144A -- Private Placement (Mexico) (a)...... 7.625 10/15/07 446,250
500 Nabisco, Inc................................................ 7.550 06/15/15 492,632
500 Safeway, Inc................................................ 6.050 11/15/03 488,442
-----------
1,834,824
-----------
CONSUMER NON-DURABLES 5.5%
500 Bausch & Lomb, Inc.......................................... 7.125 08/01/28 456,891
500 Westpoint Stevens, Inc...................................... 7.875 06/15/05 488,750
-----------
945,641
-----------
CONSUMER SERVICES 17.4%
500 Cox Communications, Inc..................................... 6.800 08/01/28 450,122
500 CSC Holdings, Inc........................................... 7.875 12/15/07 495,625
500 News America Holdings, Inc.................................. 10.125 10/15/12 552,578
500 Royal Caribbean Cruises Ltd................................. 7.500 10/15/27 466,011
500 Valassis Communications, Inc................................ 9.550 12/01/03 542,500
500 Viacom, Inc................................................. 7.625 01/15/16 501,250
-----------
3,008,086
-----------
ENERGY 5.9%
500 Occidental Petroleum Corp................................... 10.125 11/15/01 540,000
500 PDV America, Inc............................................ 7.875 08/01/03 489,362
-----------
1,029,362
-----------
HEALTHCARE 8.3%
500 Beckman Coulter, Inc........................................ 7.450 03/04/08 472,500
500 Manor Care, Inc............................................. 7.500 06/15/06 491,173
500 Tenet Healthcare Corp., 144A -- Private Placement (a)....... 8.125 12/01/08 475,000
-----------
1,438,673
-----------
PRODUCER MANUFACTURING 5.3%
500 Federal Mogul Corp., 144A -- Private Placement (a).......... 7.500 01/15/09 460,000
500 Idex Corp................................................... 6.875 02/15/08 461,713
-----------
921,713
-----------
RAW MATERIALS/PROCESSING INDUSTRIES 8.5%
500 Georgia-Pacific Corp........................................ 9.950 06/15/02 535,951
500 Owens Illinois, Inc......................................... 7.150 05/15/05 475,000
300 Vicap SA De CV (Mexico)..................................... 10.250 05/15/02 282,000
200 Vicap SA De CV (Mexico)..................................... 11.375 05/15/07 184,000
-----------
1,476,951
-----------
TECHNOLOGY 2.7%
500 Raytheon Co................................................. 6.150 11/01/08 471,172
-----------
TRANSPORTATION 7.7%
500 Delta Airlines, Inc......................................... 9.750 05/15/21 581,578
500 Norfolk Southern Corp....................................... 7.700 05/15/17 514,305
500 United Airlines, Inc........................................ 10.020 03/22/14 228,403
-----------
1,324,286
-----------
UTILITIES 15.1%
500 360 Communications Co....................................... 7.600 04/01/09 520,224
500 AT&T Corp................................................... 6.500 03/15/29 451,250
500 MCI Worldcom, Inc........................................... 6.950 08/15/28 472,735
</TABLE>

See Notes to Financial Statements

16
<PAGE> 83
DOMESTIC INCOME PORTFOLIO PORTFOLIO OF INVESTMENTS (CONTINUED)

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- -----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
UTILITIES (CONTINUED)
$350 Monongahela Power Co........................................ 8.375 07/01/22 $ 348,897
350 Public Service Co. of Colorado.............................. 8.750 03/01/22 362,567
500 Sprint Capital Corp......................................... 6.125 11/15/08 466,783
-----------
2,622,456
-----------
TOTAL CORPORATE DEBT 87.0%....................................................... 15,073,164
-----------
GOVERNMENT OBLIGATIONS 10.5%
358 Federal National Mortgage Association Pool (U.S.)........... 10.000 04/01/21 389,331
500 Republic of Argentina (Argentina)........................... 11.000 10/09/06 459,375
500 Republic of South Africa (South Africa)..................... 8.500 06/23/17 431,124
500 United Mexican States (Mexico).............................. 11.375 09/15/16 534,375
-----------
TOTAL GOVERNMENT OBLIGATIONS...................................................... 1,814,205
-----------
TOTAL LONG-TERM INVESTMENTS 97.5%
(Cost $17,314,367)....................................................................... 16,887,369
REPURCHASE AGREEMENT 1.3%
Goldman Sachs ($220,000 par collateralized by U.S. Government obligations in a
pooled cash account, dated 06/30/99, to be sold on 07/01/99 at $220,030)
(Cost $220,000)................................................................... 220,000
-----------
TOTAL INVESTMENTS 98.8%
(Cost $17,534,367)....................................................................... 17,107,369
OTHER ASSETS IN EXCESS OF LIABILITIES 1.2%................................................ 202,228
-----------
NET ASSETS 100.0%......................................................................... $17,309,597
-----------
</TABLE>

(a) 144A securities are those which are exempt from registration under Rule 144A
of the Securities Act of 1933. These securities may be resold only in
transactions exempt from registration which are normally transactions with
qualified institutional buyers.

See Notes to Financial Statements

17
<PAGE> 84

DOMESTIC INCOME PORTFOLIO STATEMENT OF ASSETS AND LIABILITIES

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Total Investments (Cost $17,534,367)........................ $17,107,369
Receivables:
Interest.................................................. 298,324
Portfolio Shares Sold..................................... 6,630
Other....................................................... 45,809
-----------
Total Assets.......................................... 17,458,132
-----------
LIABILITIES:
Payables:
Shareholder Reports....................................... 13,919
Portfolio Shares Repurchased.............................. 11,126
Distributor and Affiliates................................ 4,246
Custodian Bank............................................ 2,008
Investment Advisory Fee................................... 127
Trustees' Deferred Compensation and Retirement Plans........ 111,227
Accrued Expenses............................................ 5,882
-----------
Total Liabilities..................................... 148,535
-----------
NET ASSETS.................................................. $17,309,597
===========
NET ASSETS CONSIST OF:
Capital (Par value of $.01 per share with an unlimited
number of shares authorized).............................. $18,314,534
Accumulated Undistributed Net Investment Income............. 603,720
Net Unrealized Depreciation................................. (426,998)
Accumulated Net Realized Loss............................... (1,181,659)
-----------
NET ASSETS.................................................. $17,309,597
===========
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER
SHARE
(Based on net assets of $17,309,597 and 2,173,385 shares
of beneficial interest issued and outstanding)............ $ 7.96
===========
</TABLE>

See Notes to Financial Statements

18
<PAGE> 85

DOMESTIC INCOME PORTFOLIO STATEMENT OF OPERATIONS

For the Six Months Ended June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest.................................................... $ 717,855
Other....................................................... 625
-----------
Total Income............................................ 718,480
-----------
EXPENSES:
Investment Advisory Fee..................................... 45,254
Trustees' Fees and Related Expenses......................... 15,990
Custody..................................................... 14,238
Shareholder Reports......................................... 9,050
Shareholder Services........................................ 7,958
Accounting.................................................. 7,258
Legal....................................................... 1,121
Other....................................................... 4,391
-----------
Total Expenses.......................................... 105,260
Expense Reduction....................................... 48,901
Less Credits Earned on Overnight Cash Balances.......... 2,075
-----------
Net Expenses............................................ 54,284
-----------
NET INVESTMENT INCOME....................................... $ 664,196
===========
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Loss........................................... $ (6,839)
-----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 694,170
End of the Period:
Investments............................................. (426,998)
-----------
Net Unrealized Depreciation During the Period............... (1,121,168)
-----------
NET REALIZED AND UNREALIZED LOSS............................ $(1,128,007)
===========
NET DECREASE IN NET ASSETS FROM OPERATIONS.................. $ (463,811)
===========
</TABLE>

See Notes to Financial Statements

19
<PAGE> 86

DOMESTIC INCOME PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS

For the Six Months Ended June 30, 1999
and the Year Ended December 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 1999 December 31, 1998
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income....................................... $ 664,196 $ 1,257,306
Net Realized Loss........................................... (6,839) (54,296)
Net Unrealized Depreciation During the Period............... (1,121,168) (155,883)
----------- -----------
Change in Net Assets from Operations........................ (463,811) 1,047,127
Distributions from Net Investment Income.................... (1,259,398) (44,123)
----------- -----------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES......... (1,723,209) 1,003,004
----------- -----------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold................................... 3,345,516 6,157,023
Net Asset Value of Shares Issued Through Dividend
Reinvestment.............................................. 1,259,398 44,123
Cost of Shares Repurchased.................................. (3,493,307) (6,481,744)
----------- -----------
NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS.......... 1,111,607 (280,598)
----------- -----------
TOTAL INCREASE/DECREASE IN NET ASSETS....................... (611,602) 722,406
NET ASSETS:
Beginning of the Period..................................... 17,921,199 17,198,793
----------- -----------
End of the Period (Including accumulated undistributed net
investment income of $603,720 and $1,198,922,
respectively)............................................. $17,309,597 $17,921,199
=========== ===========
</TABLE>

See Notes to Financial Statements

20
<PAGE> 87

DOMESTIC INCOME PORTFOLIO FINANCIAL HIGHLIGHTS

The following schedule presents financial highlights for one share of
the Portfolio outstanding throughout the periods indicated. (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Year Ended December 31,
Six Months Ended ----------------------------------
June 30, 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of the Period.............. $ 8.748 $8.252 $8.008 $ 8.21 $ 7.35
------- ------ ------ ------ -------
Net Investment Income............................... .273 .614 .704 .755 .71
Net Realized and Unrealized Gain/Loss............... (.477) (.096) .252 (.212) .8525
------- ------ ------ ------ -------
Total from Investment Operations...................... (.204) .518 .956 .543 1.5625
Less Distributions from Net Investment Income......... .580 .022 .712 .745 .7025
------- ------ ------ ------ -------
Net Asset Value, End of the Period.................... $ 7.964 $8.748 $8.252 $8.008 $ 8.21
======= ====== ====== ====== =======
Total Return*......................................... (2.53%)** 6.34% 11.90% 6.68% 21.37%
Net Assets at End of the Period (In millions)......... $ 17.3 $ 17.9 $ 17.2 $ 19.8 $ 26.6
Ratio of Expenses to Average Net Assets* (a).......... .60% .60% .60% .60% .60%
Ratio of Net Investment Income to Average Net
Assets*............................................. 7.34% 7.29% 7.74% 7.97% 8.11%
Portfolio Turnover.................................... 12%** 46% 78% 77% 54%
* If certain expenses had not been assumed by Van
Kampen, Total Return would have been lower and the
ratios would have been as follows:
Ratio of Expenses to Average Net Assets (a)........... 1.16% 1.09% 1.05% 1.29% .93%
Ratio of Net Investment Income to Average Net
Assets.............................................. 6.80% 6.80% 7.29% 7.28% 7.78%
</TABLE>

** Non-Annualized

(a) The Ratio of Expenses to Average Net Assets do not reflect credits earned on
overnight cash balances. If these credits were reflected as a reduction of
expenses, the ratios would decrease by .02% for the six months ended June
30, 1999.

See Notes to Financial Statements

21
<PAGE> 88

PERFORMANCE RESULTS FOR THE PERIOD ENDED JUNE 30, 1999

VAN KAMPEN LIFE INVESTMENT TRUST

GLOBAL EQUITY PORTFOLIO

<TABLE>
<S> <C>
TOTAL RETURNS

Six-month total return based on NAV(1)...................... 11.61%
One-year total return based on NAV(1)....................... 16.09%
Three-year average annual total return based on NAV(1)...... 17.99%
Life-of-Portfolio average annual total return based on
NAV(1).................................................... 17.31%
Commencement date........................................... 07/03/95
</TABLE>

Market forecasts provided in this report may not necessarily come to pass.

The Portfolio being offered is through a variable annuity contract.

22
<PAGE> 89

PORTFOLIO MANAGEMENT REVIEW

GLOBAL EQUITY PORTFOLIO

The following is an interview with the management team of the Van Kampen Life
Investment Trust--Global Equity Portfolio. The Portfolio is managed by portfolio
managers Barton M. Biggs and Ann D. Thivierge, MSDW Investment Management.

Q HOW WOULD YOU CHARACTERIZE THE MARKET CONDITIONS IN WHICH THE PORTFOLIO
OPERATED DURING THE PAST SIX MONTHS?

A Global economic recovery became the story of the first half of 1999, as
economic activity increased in most regions of the world. The U.S. economy
resumed its impressive climb with strong growth and minimal inflation.
Meanwhile, declining interest rates and a focus on corporate cost-cutting fiscal
reforms helped revive many emerging markets, particularly in Asia.
In Europe, the introduction of the euro went smoothly, but economic
weakness, particularly in Germany, contributed to its decline since January.
Decreased exports to Asia, Russia, and Eastern European countries led to lower
economic growth and falling corporate earnings.

Q WHAT SIGNIFICANT INVESTMENT STRATEGIES AND TECHNIQUES DID YOU USE TO
PURSUE THE PORTFOLIO'S INVESTMENT OBJECTIVE?

A At of the end of the reporting period, the Portfolio had the following
regional allocations relative to six months earlier:

<TABLE>
<CAPTION>
CHANGE IN
JUNE 30, 1999* DECEMBER 31, 1998* PERCENTAGE
-------------- ------------------ ----------
<S> <C> <C> <C>
North America ............... 53.2% .... 50.6% ...... 2.6%
Europe ...................... 33.0% .... 37.5% ...... -4.5%
Far East .................... 11.6% .... 9.8% ...... 1.8%
Other ....................... 2.2% .... 2.1% ...... 0.1%
</TABLE>

* As a percentage of long-term investments.

Throughout the period, we remained underweighted in the United States
because stock valuations appeared high. This strategy hindered performance as
the U.S. economy continued its strong growth. Finally, our positions in the
peripheral European economies, including Italy, Spain, and Portugal, helped the
Portfolio's performance.
Early in the year we visited Singapore, Hong Kong, and Japan to talk with
government officials, central bankers, businesses, and other investors. Although
these meetings reinforced our belief that Asia and Japan have a long way to go
in their recoveries, we believe their commitment to restructure their economies
could lead to a long-lasting recovery in profitability and stock prices. In
addition, we were impressed with Singapore's fervor for restructuring and belt-
tightening and, as a result, significantly increased the Portfolio's exposure to
that country.
Another country we overweighted was Australia, which like Singapore, did a
good job of weathering the financial downturn in Asia. Australia has had
fantastic economic growth and we believe the sound government policies and
restructured labor markets should be a long-term positive.

Q HOW HAS THE PORTFOLIO PERFORMED DURING THE REPORTING PERIOD?

A Returns suffered during the past six months due to the Portfolio's
underweight position in the United States and significant exposure to
Europe. The Portfolio's total return during the six months ended June 30,
1999, was 11.61 percent(1). During the same period, the Morgan Stanley
Capital International (MSCI) World Index + Dividends returned 8.69 percent.
Please keep in mind that the MSCI World + Dividends Index is a broad-based index
used as a benchmark for general global equity funds. It does not reflect any
commissions or sales charges that would be paid by

23
<PAGE> 90

an investor purchasing the securities it represents. Please refer to the chart
and footnotes on page 22 for additional Portfolio performance results. Past
performance does not guarantee future results.

Q WHAT IS YOUR OUTLOOK FOR THE MONTHS AHEAD?

A In the short term, we remain cautious on the United States because of high
stock valuations and Europe because of full valuations and inconsistent
economic performance. As a result, the risk of policy mistakes within
Europe is great, and the challenge facing the ECB will be difficult. Japan's
economy, although bottoming, faces large obstacles as unemployment rises and the
fiscal spending proposal diminishes. We are optimistic that additional
restructuring should increase corporate earnings.
In the rest of Asia, we look for improvements in Australia and Singapore to
continue, but we will monitor China carefully. In the long-term, we believe
China will succeed, but in the short term we are unsure whether it will devalue
its currency, and the government's commitment to maintaining its unproductive
state-owned enterprise system is troubling. Overall, we have positioned the
Portfolio to be less defensive, and have reduced our cash holdings as a result.

Barton M. Biggs
Portfolio Manager
Global Equity Portfolio

Ann D. Thivierge
Portfolio Manager
Global Equity Portfolio

24
<PAGE> 91

GLOBAL EQUITY PORTFOLIO PORTFOLIO OF INVESTMENTS

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Description Shares Market Value
- ----------------------------------------------------------
<S> <C> <C>
COMMON STOCKS 99.2%
AUSTRALIA 1.9%
Orica Ltd. ........................ 2,001 $ 10,914
Pacific Dunlop Ltd. ............... 8,200 11,817
Rio Tinto Ltd. .................... 2,664 43,624
----------
66,355
----------
AUSTRIA 0.5%
OMV, AG............................ 200 17,832
----------
BRAZIL 0.0%
Centrais Geradoras Do Sul Do
Brasil, SA -- ADR (a)............ 34 130
----------
CANADA 3.1%
Barrick Gold Corp. ................ 100 1,929
Enbridge, Inc. .................... 3,000 68,761
Nortel Networks Corp. ............. 400 34,227
Placer Dome, Inc. ................. 100 1,161
----------
106,078
----------
DENMARK 0.3%
Novo Nordisk A/S, Ser B............ 100 10,773
----------
FINLAND 3.0%
Nokia (Ab) Oy...................... 1,200 105,147
----------
FRANCE 3.8%
Alcatel Alsthom (Cie Gen El)....... 165 23,217
Axa-UAP............................ 230 28,048
Compagnie de Saint Gobain.......... 148 23,572
Elf Aquitaine...................... 150 22,004
LVMH (Moet Hennessy Louis
Vuitton)......................... 55 16,096
LVMH (Moet Hennessy Louis Vuitton)
Rights
(expiring 09/21/99).............. 55 1,607
Total, Class B..................... 135 17,410
----------
131,954
----------
GERMANY 5.1%
Allianz, AG........................ 102 28,284
BASF, AG........................... 250 11,043
Bayer, AG.......................... 200 8,329
DaimlerChrysler, AG................ 251 21,734
Degussa Huels, AG (a).............. 50 2,062
Deutsche Bank, AG.................. 400 24,390
Deutsche Telekom, AG............... 606 25,425
Linde.............................. 50 29,946
Siemens, AG........................ 200 15,422
VEBA, AG........................... 200 11,752
----------
178,387
----------
ITALY 2.1%
Ente Nazionale Idrocarburi SpA..... 2,000 11,937
Fiat SpA........................... 4,000 12,659
Enstituto Nazionale delle
Assicurazioni (INA).............. 12,000 27,833
Telecom Italia..................... 2,500 14,922
Telecom Italia SpA................. 2 21
Unione Immobiliare................. 12,000 5,319
----------
72,691
----------
JAPAN 9.6%
Acom Co., Ltd. .................... 200 17,277
Bank of Tokyo...................... 600 8,546
Daiwa Securities................... 1,000 6,613
</TABLE>

<TABLE>
<CAPTION>
Description Shares Market Value
- ----------------------------------------------------------
<S> <C> <C>
JAPAN (CONTINUED)
East Japan Railway................. 1 $ 5,373
Hitachi............................ 1,000 9,383
Honda Motor Co. ................... 1,000 42,407
Japan Air Lines Co. ............... 1,000 3,307
Japan Energy Corp. ................ 3,000 3,522
Kao Corp. ......................... 1,000 28,106
Kawasaki Heavy Industries.......... 1,000 2,711
Kawasaki Steel Corp. .............. 2,000 3,737
Komatsu............................ 1,000 6,390
Kyocera Corp. ..................... 100 5,869
Matsushita Electric Industries..... 1,000 19,426
Mitsubishi Electric Corp. ......... 2,000 7,688
Mitsubishi Estate.................. 1,000 9,763
Nagoya Railroad Co. ............... 3,000 9,870
NEC Corp. ......................... 1,000 12,441
Nippon Steel Corp. ................ 1,000 2,323
Nippon Telegraph & Telephone
Corp. ........................... 3 34,967
Nippon Yusen Kabushiki Kaisha...... 2,000 7,704
Nissan Motor Co. .................. 1,000 4,778
NSK Ltd. .......................... 1,000 5,489
Oji Paper Co. ..................... 1,000 5,787
Sekisui House...................... 1,000 10,796
Sharp Corp. ....................... 1,000 11,821
Teijin............................. 1,000 4,051
Tobu Railway Co. .................. 1,000 2,835
Toppan Printing Co. ............... 1,000 11,168
Toyota Motor Corp. ................ 1,000 31,661
----------
335,809
----------
MALAYSIA 0.3%
RHB Capital Berhard................ 9,000 8,945
----------
NETHERLANDS 2.1%
ABN Amro Holdings.................. 652 14,114
Akzo Nobel......................... 400 16,824
Elsevier........................... 700 8,118
Koninklijke Ahold NV............... 542 18,661
Wolters Kluwer..................... 411 16,354
----------
74,071
----------
REPUBLIC OF KOREA 0.5%
Korea Electric Power
Corp. -- ADR..................... 307 6,294
Pohang Iron & Steel Co.,
Ltd. -- ADR...................... 317 10,659
----------
16,953
----------
SINGAPORE 1.2%
Singapore Telecommunications....... 24,000 41,175
----------
SOUTH AFRICA 0.2%
Sasol Ltd. -- ADR.................. 1,126 8,164
----------
SPAIN 2.1%
Endesa, SA......................... 300 6,395
Repsol-YPF, SA..................... 1,200 24,679
Telefonica De Espana (a)........... 889 42,916
----------
73,990
----------
SWEDEN 0.7%
Ericsson Telefon LM, Ser B......... 800 25,680
----------
</TABLE>

See Notes to Financial Statements

25
<PAGE> 92
GLOBAL EQUITY PORTFOLIO PORTFOLIO OF INVESTMENTS

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Description Shares Market Value
- ----------------------------------------------------------
<S> <C> <C>
SWITZERLAND 2.9%
Credit Suisse Group................ 200 $ 34,596
Nestle, SA......................... 10 18,012
Novartis, AG....................... 20 29,194
Roche Holdings Genusscheine, AG.... 2 20,552
----------
102,354
----------
UNITED KINGDOM 10.9%
Allied Zurich (a).................. 850 10,685
Barclays........................... 1,000 29,082
Bass............................... 1,160 16,493
British America Tobacco............ 850 8,019
BP Amoco PLC ...................... 1,162 20,807
BP Amoco PLC -- ADR................ 264 28,644
British Telecommunications......... 2,400 40,175
Burmah Castrol PLC ................ 583 11,055
Carlton Communications............. 2,500 20,728
Glaxo Wellcome..................... 1,000 27,789
HSBC Holdings...................... 400 14,174
HSBC Holdings...................... 700 24,749
Invensys PLC ...................... 1,255 5,934
Lloyds TSB Group................... 2,100 28,517
Marks & Spencer.................... 1,200 6,923
Rank Group......................... 2,486 9,894
Scot & Newcastle................... 2,100 21,946
Smithkline Beecham................. 2,000 26,008
Smiths Industries.................. 1,000 13,272
Zeneca Group....................... 400 15,466
----------
380,360
----------
UNITED STATES 48.9%
Abbott Laboratories, Inc. ......... 600 27,300
Alcoa, Inc. ....................... 400 24,750
American Express Co. .............. 200 26,025
American Home Products Corp. ...... 600 34,500
American International Group,
Inc. ............................ 300 35,119
AT&T Corp. ........................ 750 41,859
BankAmerica Corp. ................. 300 21,994
BellSouth Corp. ................... 800 37,500
Boeing Co. ........................ 100 4,419
Bristol-Myers Squibb Co. .......... 600 42,262
Chevron Corp. ..................... 300 28,556
Cisco Systems, Inc. (a)............ 900 58,050
Citigroup, Inc. ................... 750 35,625
Coca Cola Co. ..................... 700 43,750
Columbia / HCA Healthcare Corp. ... 300 6,844
Conexant Systems, Inc. (a)......... 150 8,709
Delphi Automotive Systems Corp.
(a).............................. 210 3,892
Dominion Resources, Inc. .......... 700 30,319
Dow Chemical Co. .................. 200 25,375
Du Pont (E. I.) de Nemours &
Co. ............................. 200 13,662
Eastman Kodak Co. ................. 200 13,550
</TABLE>

<TABLE>
<CAPTION>
Description Shares Market Value
- ----------------------------------------------------------
<S> <C> <C>
UNITED STATES (CONTINUED)
Federal National Mortgage Assn..... 300 $ 20,512
First Data Corp. .................. 400 19,575
FPL Group, Inc. ................... 400 21,850
General Electric Co. .............. 300 33,900
General Motors Corp. .............. 300 19,800
Gillette Co. ...................... 400 16,400
Hewlett Packard Co. ............... 300 30,150
Home Depot, Inc. .................. 500 32,219
Illinois Tool Works, Inc. ......... 200 16,400
Intel Corp. ....................... 400 23,800
International Business Machines
Corp. ........................... 400 51,700
International Paper Co. ........... 300 15,150
J.C. Penney, Inc. ................. 300 14,569
Johnson & Johnson, Inc. ........... 300 29,400
JP Morgan & Co., Inc. ............. 300 42,150
Kimberly Clark Corp. .............. 300 17,100
LifePoint Hospitals, Inc. ......... 15 202
Lilly Eli & Co. ................... 300 21,487
Lucent Technologies, Inc. ......... 1,200 80,925
McDonald's Corp. .................. 800 33,050
MCI WorldCom, Inc. (a)............. 700 60,244
Meritor Automotive, Inc. .......... 100 2,550
Microsoft Corp. (a)................ 1,200 108,225
Minnesota Mining & Manufacturing
Co. ............................. 300 26,081
Mobil Corp. ....................... 200 19,800
Motorola, Inc. .................... 200 18,950
Oracle Corp. (a)................... 375 13,922
PacifiCorp......................... 1,000 18,375
Pfizer, Inc. ...................... 200 21,950
Procter & Gamble Co. .............. 300 26,775
Raytheon Co., Class A.............. 25 1,722
Rockwell International Corp. ...... 300 18,225
SBC Communications, Inc. .......... 800 46,400
Schering-Plough Corp. ............. 400 21,200
Sears Roebuck & Co. ............... 300 13,369
Time Warner, Inc. ................. 600 44,100
Triad Hospitals, Inc. ............. 15 203
Warner-Lambert Co. ................ 600 41,625
Wells Fargo Company................ 1,000 42,750
Weyerhaeuser Co. .................. 300 20,625
Xerox Corp. ....................... 600 35,437
----------
1,706,927
----------
TOTAL INVESTMENTS 99.2%
(Cost $2,284,835)...................... 3,463,775
FOREIGN CURRENCY 0.4%
(Cost $15,302)......................... 15,020
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.4%........................ 11,693
----------
NET ASSETS 100.0%......................... $3,490,488
----------
</TABLE>

(a) Non-income producing security as this stock currently does not declare
dividends.

ADR -- American Depositary Receipt

See Notes to Financial Statements

26
<PAGE> 93

GLOBAL EQUITY PORTFOLIO STATEMENT OF ASSETS AND LIABILITIES

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Total Investments (Cost $2,284,835)......................... $3,463,775
Cash........................................................ 72,761
Foreign Currency (Cost $15,302)............................. 15,020
Receivables:
Expense Reimbursement by Adviser.......................... 12,093
Dividends................................................. 6,732
Unamortized Organizational Costs............................ 1,363
Other....................................................... 163
----------
Total Assets.......................................... 3,571,907
----------
LIABILITIES:
Payable for Distributor and Affiliates...................... 8,821
Forward Currency Contracts.................................. 956
Accrued Expenses............................................ 42,805
Trustees' Deferred Compensation and Retirement Plans........ 28,837
----------
Total Liabilities..................................... 81,419
----------
NET ASSETS.................................................. $3,490,488
==========
NET ASSETS CONSIST OF:
Capital (Par Value of $.01 per share with an unlimited
number of shares authorized).............................. $2,291,442
Net Unrealized Appreciation................................. 1,177,553
Accumulated Net Realized Gain............................... 42,073
Accumulated Distributions in Excess of Net Investment
Income.................................................... (20,580)
----------
NET ASSETS.................................................. $3,490,488
==========
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER
SHARE (Based on net assets of $3,490,488 and 237,413
shares of beneficial interest issued and outstanding)..... $ 14.70
==========
</TABLE>

See Notes to Financial Statements

27
<PAGE> 94

GLOBAL EQUITY PORTFOLIO STATEMENT OF OPERATIONS

For the Six Months Ended June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (Net of foreign withholding taxes of $2,530)...... $ 32,942
Interest.................................................... 103
----------
Total Income............................................ 33,045
----------
EXPENSES:
Custody..................................................... 31,317
Investment Advisory Fee..................................... 16,334
Accounting.................................................. 11,169
Shareholder Reports......................................... 8,507
Audit....................................................... 8,126
Shareholder Services........................................ 7,776
Trustees' Fees and Related Expenses......................... 4,495
Amortization of Organizational Costs........................ 677
Other....................................................... 1,427
----------
Total Expenses.......................................... 89,828
Expense Reduction....................................... 70,338
----------
Net Expenses............................................ 19,490
----------
NET INVESTMENT INCOME....................................... $ 13,555
==========
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Gain/Loss:
Investments............................................... $ 48,406
Forward Currency Contracts................................ 587
----------
Net Realized Gain........................................... 48,992
----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 880,273
----------
End of the Period:
Investments............................................. 1,178,940
Forward Currency Contracts.............................. (956)
Foreign Currency Translation............................ (431)
----------
1,177,553
----------
Net Unrealized Appreciation During the Period............... 297,280
----------
NET REALIZED AND UNREALIZED GAIN............................ $ 346,272
==========
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $ 359,827
==========
</TABLE>

See Notes to Financial Statements

28
<PAGE> 95

GLOBAL EQUITY PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS

For the Six Months Ended June 30, 1999 and the
Year Ended December 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 1999 December 31, 1998
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income....................................... $ 13,555 $ 25,140
Net Realized Gain........................................... 48,992 17,243
Net Unrealized Appreciation During the Period............... 297,280 572,323
---------- -----------
Change in Net Assets from Operations........................ 359,827 614,706
---------- -----------
Distributions from Net Investment Income.................... (9,541) (25,140)
Distributions in Excess of Net Investment Income............ -0- (12,870)
---------- -----------
Distributions from and in Excess of Net Investment Income... (9,541) (38,010)
---------- -----------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES......... 350,286 576,696
---------- -----------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold................................... 116,851 782,393
Net Asset Value of Shares Issued Through Dividend
Reinvestment.............................................. 5,636 24,409
Cost of Shares Repurchased.................................. (333,164) (1,006,628)
---------- -----------
NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS.......... (210,677) (199,826)
---------- -----------
TOTAL INCREASE IN NET ASSETS................................ 139,609 376,870
NET ASSETS:
Beginning of the Period..................................... 3,350,879 2,974,009
---------- -----------
End of the Period (Including accumulated distributions in
excess of net investment income of $20,580 and $24,594,
respectively)............................................. $3,490,488 $ 3,350,879
========== ===========
</TABLE>

See Notes to Financial Statements

29
<PAGE> 96

GLOBAL EQUITY PORTFOLIO FINANCIAL HIGHLIGHTS

The following schedule presents financial highlights for one share of
the Portfolio outstanding throughout the periods indicated. (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
July 3, 1995
(Commencement
Year Ended December 31, of Investment
Six Months Ended --------------------------- Operations) to
June 30, 1999 1998 1997 1996 December 31, 1995
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of the Period...... $ 13.208 $11.004 $11.658 $10.30 $ 10.00
---------------- ------- ------- ------- -------
Net Investment Income/Loss.................. .051 .089 .110 .035 (.16)
Net Realized and Unrealized Gain............ 1.484 2.258 1.696 1.687 .46
---------------- ------- ------- ------- -------
Total from Investment Operations.............. 1.535 2.347 1.806 1.722 .30
---------------- ------- ------- ------- -------
Less:
Distributions from and in Excess of Net
Investment Income......................... .041 .143 .106 .188 -0-
Distributions from and in Excess of Net
Realized Gain............................. -0- -0- 2.354 .176 -0-
---------------- ------- ------- ------- -------
Total Distributions........................... .041 .143 2.460 .364 -0-
---------------- ------- ------- ------- -------
Net Asset Value, End of the Period............ $ 14.702 $13.208 $11.004 $11.658 $ 10.30
================ ======= ======= ======= =======
Total Return*................................. 11.61%** 21.61%.. 15.85% 16.72% 3.00%**
Net Assets at End of the Period (In
millions)................................... $ 3.5 $3.4 $3.0 $2.5 $ 2.4
Ratio of Expenses to Average Net Assets*...... 1.20% 1.20% 1.20% 1.20% 4.35%
Ratio of Net Investment Income/Loss to Average
Net Assets*................................. .83% 0.79% .76% .27% (2.76%)
Portfolio Turnover............................ 2%** 3% 132% 94% 42%**
* If certain expenses had not been assumed by
Van Kampen, Total Return would have been
lower and the ratios would have been as
follows:
Ratio of Expenses to Average Net Assets....... 5.50% 6.27% 6.78% 7.43% 8.27%
Ratio of Net Investment Loss to Average Net
Assets...................................... (3.57%) (4.28%) (4.82%) (5.96%) (6.68%)
</TABLE>

**Non-Annualized

See Notes to Financial Statements

30
<PAGE> 97

PERFORMANCE RESULTS FOR THE PERIOD ENDED JUNE 30, 1999

VAN KAMPEN LIFE INVESTMENT TRUST

GOVERNMENT PORTFOLIO

<TABLE>
<S> <C>
TOTAL RETURNS
Six-month total return based on NAV(1)...................... (3.36%)
One-year total return based on NAV(1)....................... 1.18%
Five-year average annual total return based on NAV(1)....... 6.76%
Ten-year average annual total return based on NAV(1)........ 7.02%
Life-of-Portfolio average annual total return based on
NAV(1)...................................................... 6.67%
Commencement date........................................... 04/07/86
YIELD
SEC Yield(2)................................................ 5.82%
</TABLE>

(1)Total return based on net asset value (NAV) assumes an investment at the
beginning of the period indicated, reinvestment of all distributions for the
period, and sale of all shares at the end of the period, all at NAV.

Total returns do not include any charges, expenses, or fees imposed by an
insurance company at the underlying Portfolio or separate account levels. If the
returns included the effect of these additional charges, the returns would have
been lower.

See the Comparative Performance section of the current prospectus. Past
performance does not guarantee future results. U.S. Government securities are
backed by the full faith and credit of the U.S. Government, its agencies or
instrumentalities. The government backing applies only to the timely payment of
principal and interest when due, on specific securities in the Portfolio, not to
shares of the Portfolio. Portfolio shares when redeemed, may be worth more or
less than their original cost. The value of debt securities will fluctuate with
changes in market conditions and interest rates, which will effect the value of
Portfolio shares. Securities which are issued by private issuers involve greater
risk than those issued directly by the U.S. Government.

Market forecasts provided in this report may not necessarily come to pass.

The Portfolio being offered is through a variable annuity contract.

31
<PAGE> 98

PORTFOLIO MANAGEMENT REVIEW

GOVERNMENT PORTFOLIO

The following is an interview with the management team of the Van Kampen Life
Investment Trust--Government Portfolio. The team is led by John R. Reynoldson,
portfolio manager, and Peter W. Hegel, chief investment officer for fixed-income
investments.

Q HOW WOULD YOU DESCRIBE THE MARKET IN WHICH THE PORTFOLIO OPERATED DURING
THE REPORTING PERIOD?

A The first quarter of 1999 marked a recovery in the fixed-income market
from the October 1998 meltdown, as investors grew confident in the
strength of the economy and continued modest inflation. Consequently,
yield spreads narrowed between Treasuries and other fixed-income products
(such as government, mortgage-backed, and high-yield securities). However, this
good news for fixed-income products was quelled in the second quarter by a
slight surge in inflation and warnings of interference from the Federal Reserve
Board. This prompted yield spreads to widen once again, although not to the
record-high levels seen last fall.
As interest rates climbed steadily during the period, the Treasury yield
curve began to flatten, indicating a moderation in the yield difference between
long- and short-term Treasuries. This change became more pronounced as yields on
short-term Treasuries rose to reflect the potential for an increase--or perhaps
a series of increases--in the federal funds rate. At the end of the reporting
period, the Fed approved a 0.25 percent hike while reassuring fixed-income
investors that additional action seemed unnecessary.

Q HOW DID THESE CONDITIONS AFFECT YOUR MANAGEMENT OF THE PORTFOLIO?

A Near the end of last year, we began increasing the Portfolio's exposure to
mortgage-backed securities. We overweighted the portfolio with 6.5 percent
30-year GNMAs and 6 to 6.5 percent 15-year FNMAs, because we felt these
securities had a low vulnerability to prepayment. As interest rates rose
throughout the period, the risk of prepayment and mortgage refinancing decreased
even further. At the same time, some of these issues that had been priced at a
premium--in other words, priced over par--became discounted. Although this
created some value opportunities in the mortgage market, it was detrimental to
the Portfolio's return. However, we've maintained our mortgage overweighting
because we believe the mortgage market will continue to recover from its low
point last fall.
We also maintained the Portfolio's Treasury exposure at approximately 37
percent. Treasuries in the Portfolio were allocated in a barbell pattern, with
the heaviest weightings concentrated in long bonds and short-term Treasuries
with an average maturity of two years. As the yield curve flattened during the
period, we found that there was little value in the middle of the curve.

Q HOW DID THE PORTFOLIO PERFORM DURING THE REPORTING PERIOD?

A Challenging conditions in the mortgage market--and our high exposure to
this area--was the most significant factor affecting the Portfolio's
return. For the six-month period ended June 30, 1999, the Government
Portfolio generated a total return of -3.36 percent(1). By comparison, the
Lehman Brothers Mutual Fund U.S. Government/ Mortgage Index posted a total
return of -1.14 percent for the same period. This broad-based, unmanaged index
reflects the general performance of U.S. government and mortgage-backed
securities. Please keep in mind that this index does not reflect any commissions
or fees that would be paid by an investor purchasing the securities it
represents. Of course, past performance is no guarantee of comparable future
results. For additional performance results, please refer to the chart and
footnotes on page 31.

32
<PAGE> 99

Q WHAT IS YOUR OUTLOOK FOR THE MONTHS AHEAD?

A We expect a continuation of the current low-inflation environment coupled
with slower economic growth due to slight international growth and the
possibility of year 2000 computer complications near the end of the year.
This environment supports the continued recovery of the fixed-income markets,
which are still unwinding from their upheaval late last year. Ultimately, we
believe these markets are transitioning to historically normal conditions.
Taking this perspective, we see value in the mortgage market and are comfortable
with the Portfolio's current positioning.

John R. Reynoldson
Portfolio Manager
Government Portfolio

Peter W. Hegel
Chief Investment Officer
Fixed Income Investments

33
<PAGE> 100

GOVERNMENT PORTFOLIO PORTFOLIO OF INVESTMENTS

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- ---------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS 53.8%
$2,000 Federal Farm Credit Bank Medium Term Note (a)............ 6.520% 09/24/07 $ 2,001,960
1,088 Federal Home Loan Mortgage Corp. Gold 30 Year Pools...... 7.000 05/01/24 to 07/01/24 1,079,190
151 Federal Home Loan Mortgage Corp. Gold 30 Year Pools...... 7.500 10/01/24 152,908
159 Federal Home Loan Mortgage Corp. Gold 30 Year Pools...... 8.000 09/01/24 to 10/01/24 163,245
350 Federal Home Loan Mortgage Corp. CMO Floater (a)......... 5.430 09/15/23 349,976
613 Federal Home Loan Mortgage Corp. CMO Floater (a)......... 5.588 09/15/27 614,093
1,261 Federal National Mortgage Association 15 Year Dwarf
Pools.................................................... 6.500 06/01/09 to 04/01/11 1,245,549
1,241 Federal National Mortgage Association 15 Year Dwarf
Pools.................................................... 7.000 07/01/10 to 12/01/11 1,247,199
1,891 Federal National Mortgage Association 30 Year Pools...... 6.000 03/01/28 to 04/01/28 1,777,356
981 Federal National Mortgage Association Pools.............. 6.000 09/01/28 to 10/01/28 922,151
4,431 Federal National Mortgage Association Pools.............. 6.500 05/15/23 to 03/15/29 4,281,856
1,041 Federal National Mortgage Association Pools.............. 7.000 12/01/23 to 06/01/24 1,031,243
271 Federal National Mortgage Association Pools.............. 7.500 05/01/24 to 10/01/24 274,577
265 Federal National Mortgage Association Pools.............. 8.000 06/01/24 to 10/01/24 264,835
493 Federal National Mortgage Association Pools.............. 11.000 11/01/20 554,108
4,938 Government National Mortgage Association Pools........... 6.500 05/15/23 to 03/15/29 4,757,293
6,775 Government National Mortgage Association Pools........... 7.000 04/15/23 to 9/15/28 6,706,246
1,019 Government National Mortgage Association Pools........... 7.500 04/15/22 to 06/15/24 1,031,995
261 Government National Mortgage Association Pools........... 8.000 05/15/17 to 01/15/23 269,307
232 Government National Mortgage Association Pools........... 8.500 04/15/17 to 07/15/17 244,829
504 Government National Mortgage Association Pools........... 9.500 06/15/09 to 10/15/09 545,015
59 Government National Mortgage Association Pools........... 11.000 09/15/10 to 08/15/20 66,793
-----------
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS....................................... 29,581,724
-----------
UNITED STATES TREASURY OBLIGATIONS 41.2%
2,000 United States Treasury Bonds (a)......................... 6.000 02/15/26 1,949,320
2,000 United States Treasury Notes (a)......................... 5.375 06/30/03 1,975,680
1,000 United States Treasury Notes (a)......................... 5.500 02/15/08 973,220
4,500 United States Treasury Notes (a)......................... 5.625 02/15/06 4,440,060
2,000 United States Treasury Notes (a)......................... 5.750 08/15/03 2,000,660
6,000 United States Treasury Notes (a)......................... 6.250 02/28/02 6,091,860
5,000 United States Treasury Notes (a)......................... 7.500 05/15/02 5,240,150
-----------
TOTAL UNITED STATES TREASURY OBLIGATIONS................................................ 22,670,950
-----------
FORWARD PURCHASE COMMITMENTS 17.2%
2,000 Federal National Mortgage Association 15 Year July Dwarf
Forward.................................................. 6.000 TBA 1,933,750
2,000 Federal National Mortgage Association July Forward....... 5.500 TBA 1,822,190
</TABLE>

See Notes to Financial Statements

34
<PAGE> 101
GOVERNMENT PORTFOLIO PORTFOLIO OF INVESTMENTS (CONTINUED)

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- ---------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
FORWARD PURCHASE COMMITMENTS (CONTINUED)
$4,000 Federal National Mortgage Association July Forward....... 6.000% TBA $ 3,764,380
2,000 Federal National Mortgage Association July Forward....... 6.500 TBA 1,932,190
-----------
TOTAL FORWARD PURCHASE COMMITMENTS...................................................... 9,452,510
-----------
TOTAL LONG-TERM INVESTMENTS 112.2%
(Cost $62,327,661)............................................................................. 61,705,184
REPURCHASE AGREEMENT 4.5%
Donaldson Lufkin and Jenrette ($2,435,000 par collateralized by U.S. Government
obligations in a pooled cash account, dated 6/30/99, to be sold on 7/1/99 at $2,435,325)
(a) (Cost $2,435,000)................................................................... 2,435,000
-----------
TOTAL INVESTMENTS 116.7%
(Cost $64,762,661)............................................................................. 64,140,184
LIABILITIES IN EXCESS OF OTHER ASSETS (16.7%)................................................... (9,162,475)
-----------
NET ASSETS 100.0%.............................................................................. $54,977,709
-----------
</TABLE>

(a) Assets segregated as collateral for open forward and open futures
transactions.

TBA--To be announced, maturity date has not yet been established. Upon
settlement and delivery of the mortgage pools, maturity dates will be
assigned.

CMO--Collateralized Mortgage Obligations

See Notes to Financial Statements

35
<PAGE> 102

GOVERNMENT PORTFOLIO STATEMENT OF ASSETS AND LIABILITIES

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Total Investments (Cost $64,762,661)........................ $64,140,184
Receivables:
Interest.................................................. 571,056
Variations Margin on Futures.............................. 21,688
Other....................................................... 49,763
-----------
Total Assets.......................................... 64,782,691
-----------
LIABILITIES:
Payables:
Investments Purchased..................................... 9,639,688
Investment Advisory Fee................................... 13,491
Portfolio Shares Repurchased.............................. 10,271
Distributor and Affiliates................................ 5,587
Custodian Bank............................................ 1,505
Trustees' Deferred Compensation and Retirement Plans........ 117,619
Accrued Expenses............................................ 16,821
-----------
Total Liabilities..................................... 9,804,982
-----------
NET ASSETS.................................................. $54,977,709
===========
NET ASSETS CONSIST OF:
Capital (Par value of $.01 per share with an unlimited
number of shares authorized).............................. $62,709,811
Accumulated Undistributed Net Investment Income............. 1,525,313
Net Unrealized Depreciation................................. (656,593)
Accumulated Net Realized Loss............................... (8,600,822)
-----------
NET ASSETS.................................................. $54,977,709
===========
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER
SHARE
(Based on net assets of $54,977,709 and 6,230,972 shares
of beneficial interest issued and outstanding)............ $ 8.82
===========
</TABLE>

See Notes to Financial Statements

36
<PAGE> 103

GOVERNMENT PORTFOLIO STATEMENT OF OPERATIONS

For the Six Months Ended June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

INVESTMENT INCOME:
Interest.................................................... $ 1,756,758
-----------
EXPENSES:
Investment Advisory Fee..................................... 139,715
Custody..................................................... 18,545
Trustees' Fees and Related Expenses......................... 16,374
Accounting.................................................. 14,871
Shareholder Services........................................ 8,412
Legal....................................................... 1,519
Other....................................................... 10,386
-----------
Total Expenses.......................................... 209,822
Investment Advisory Fee Reduction....................... 40,066
Less Credits Earned on Overnight Cash Balances.......... 2,209
-----------
Net Expenses............................................ 167,547
-----------
NET INVESTMENT INCOME....................................... $ 1,589,211
===========
REALIZED AND UNREALIZED GAIN/LOSS:
Realized Gain/Loss:
Investments............................................... $ (40,090)
Futures................................................... (795,416)
Forward Commitments....................................... (170,703)
-----------
Net Realized Loss........................................... (1,006,209)
-----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 1,842,793
-----------
End of the Period:
Investments............................................. (622,477)
Futures................................................. (34,116)
-----------
(656,593)
-----------
Net Unrealized Depreciation During the Period............... (2,499,386)
-----------
NET REALIZED AND UNREALIZED LOSS............................ $(3,505,595)
===========
NET DECREASE IN NET ASSETS FROM OPERATIONS.................. $(1,916,384)
===========
</TABLE>

See Notes to Financial Statements

37
<PAGE> 104

GOVERNMENT PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS

For the Six Months Ended June 30, 1999
and the Year Ended December 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 1999 December 31, 1998
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income....................................... $ 1,589,211 $ 3,088,718
Net Realized Gain/Loss...................................... (1,006,209) 973,202
Net Unrealized Appreciation/Depreciation During the
Period.................................................... (2,499,386) 327,575
----------- -----------
Change in Net Assets from Operations........................ (1,916,384) 4,389,495
Distributions from Net Investment Income.................... (2,745,022) (529,309)
----------- -----------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES......... (4,661,406) 3,860,186
----------- -----------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold................................... 4,944,656 11,164,705
Net Asset Value of Shares Issued Through Dividend
Reinvestment.............................................. 2,745,022 529,309
Cost of Shares Repurchased.................................. (5,110,175) (11,052,927)
----------- -----------
NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS.......... 2,579,503 641,087
----------- -----------
TOTAL INCREASE/DECREASE IN NET ASSETS....................... (2,081,903) 4,501,273
NET ASSETS:
Beginning of the Period..................................... 57,059,612 52,558,339
----------- -----------
End of the Period (Including accumulated undistributed net
investment income of $1,525,313 and $2,681,124,
respectively)............................................. $54,977,709 $57,059,612
=========== ===========
</TABLE>

See Notes to Financial Statements

38
<PAGE> 105

GOVERNMENT PORTFOLIO FINANCIAL HIGHLIGHTS

The following schedule presents financial highlights for one share of
the Portfolio outstanding throughout the periods indicated. (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Year Ended December 31,
Six Months Ended ----------------------------------------------
June 30, 1999 1998 1997 1996 1995
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of the Period....... $ 9.594 $ 8.920 $ 8.666 $ 9.06 $ 8.28
------- ------- ------- ------- -------
Net Investment Income........................ .251 .520 .566 .569 .60
Net Realized and Unrealized Gain/Loss........ (.565) .244 .231 (.388) .78
------- ------- ------- ------- -------
Total from Investment Operations............... (.314) .764 .797 .181 1.38
Less Distributions from and in Excess of Net
Investment Income............................ .457 .090 .543 .575 .60
------- ------- ------- ------- -------
Net Asset Value, End of the Period............. $ 8.823 $ 9.594 $ 8.920 $ 8.666 $ 9.06
======= ======= ======= ======= =======
Total Return*.................................. (3.36%)** 8.59% 9.61% 2.12% 17.17%
Net Assets at End of the Period (In
millions).................................... $ 55.0 $ 57.1 $ 52.6 $ 57.3 $ 67.0
Ratio of Expenses to Average Net Assets*....... .60% .60% .60% .60% .60%
Ratio of Net Investment Income to Average Net
Assets*...................................... 5.69% 5.74% 6.51% 6.56% 6.89%
Portfolio Turnover............................. 32%** 107% 119% 143% 164%
* If certain expenses had not been assumed by
Van Kampen, Total Return would have been
lower and the ratios would have been as
follows:
Ratio of Expenses to Average Net Assets........ .74% .73% .74% .80% .72%
Ratio of Net Investment Income to Average Net
Assets....................................... 5.55% 5.61% 6.37% 6.36% 6.77%
</TABLE>

**Non-Annualized

See Notes to Financial Statements

39
<PAGE> 106

PORTFOLIO MANAGEMENT REVIEW

MONEY MARKET PORTFOLIO

The following is an interview with the management team of the Van Kampen Life
Investment Trust--Money Market Portfolio. The team is led by Reid J. Hill,
portfolio manager, and Peter W. Hegel, chief investment officer for fixed-
income investments.

Q HOW WOULD YOU CHARACTERIZE THE MARKET CONDITIONS IN WHICH THE PORTFOLIO
HAS OPERATED DURING THE PAST SIX MONTHS?

A During the first quarter of 1999, the Dow Jones Industrial Average broke
through the 10,000 point ceiling, and climbed past 11,000 points. The U.S.
economy remained strong, leading the Fed to raise the federal funds
interest rate by 0.25 percent on June 30. Consequently, some nervous investors
fled to more stable shelter--including money market funds--near the end of the
period.

Q HOW DID YOU MANAGE THE PORTFOLIO IN LIGHT OF THESE CONDITIONS?

A We continued to pursue the Portfolio's investment objectives of capital
protection and high current income. At the end of the period, 38.9 percent
of the Portfolio was invested in high-grade commercial paper, 28.0 percent
in repurchase agreements ("repos"), 21.1 percent in certificates of deposits
(CDs), and 11.8 percent in government agency obligations. CDs offer a guaranteed
return of principal over a stated period of time, a fixed rate of interest, and
are typically issued by institutions whose deposits are insured.
During the past six months, we focused on commercial paper, where we found
more value than in the bank notes sector. However, the market volatility we
experienced in late May prompted us to pursue the liquidity of repos, thus
reducing our exposure to commercial paper throughout the period.
Within the commercial paper sector, we selected 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 favored 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.

Q HOW DID THE PORTFOLIO PERFORM DURING THE SIX-MONTH REPORTING PERIOD?

A The Portfolio continues to provide shareholders with relative stability,
daily liquidity at $1.00 per share, and a competitive level of current
income. Through the six-month period ended June 30, 1999, the Portfolio
produced a total return of 2.16 percent. As of June 30, the Portfolio
generated a seven-day average yield of 4.34 percent and a 30-day effective yield
of 4.31 percent. The Portfolio's price per share remained unchanged at $1.00
throughout the reporting period. Yield quotation more closely reflects the
current earnings of the Portfolio than the total return quotation.

Q WHAT IS YOUR ECONOMIC OUTLOOK FOR THE MONTHS AHEAD?

A As expected, the Fed raised interest rates at the end of the period, but
surprised the market by abandoning its tightening bias and adopting a
neutral stance on interest rates. Interest rate adjustments like these
should not affect the Portfolio because the short-term market generally
anticipates such interventions.

40
<PAGE> 107

In conjunction with this outlook, we will maintain our traditional course of
investing in high-grade commercial paper, repurchase agreements, and government
obligations. At the same time, we'll look to add value through careful security
selection as we seek to achieve the Portfolio's objectives.

Reid J. Hill
Portfolio Manager
Money Market Portfolio

Peter W. Hegel
Chief Investment Officer
Fixed Income Investments

An investment in the Portfolio is neither insured nor guaranteed by the U.S.
government, and there can be no assurance that the Portfolio will be able to
maintain a stable net asset value of $1.00 per share.

Past performance does not guarantee future results. Investment return and net
asset value will fluctuate with market conditions. Portfolio shares, when
redeemed, may be worth more or less than their original cost.

The Portfolio being offered is through a variable annuity contract.

41
<PAGE> 108

MONEY MARKET PORTFOLIO PORTFOLIO OF INVESTMENTS

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Discount
Par Yield on
Amount Maturity Date of Amortized
(000) Description Date Purchase Cost
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
COMMERCIAL PAPER 38.9%
$ 800 American Express
Credit Corp.......... 07/28/99 4.849% $ 797,126
800 American General
Finance Corp......... 08/13/99 4.874 795,404
800 Associates Corp. of
North America........ 08/20/99 4.980 794,522
800 Chevron USA, Inc...... 07/09/99 4.966 799,120
1,000 CIT Group Holdings,
Inc.................. 07/02/99 5.065 999,859
800 Coca-Cola Co.......... 07/29/99 4.980 796,920
800 Commercial Credit
Corp................. 07/19/99 4.895 798,056
800 Ford Motor Credit
Co................... 07/23/99 4.979 797,580
800 General Electric
Corp................. 08/05/99 4.899 796,251
800 John Deere Capital
Corp................. 07/07/99 4.858 799,360
800 Norwest Financial,
Inc.................. 08/03/99 4.972 796,385
1,000 Prudential Funding
Corp................. 08/18/99 4.889 993,560
-----------
TOTAL COMMERCIAL PAPER..................... 9,964,143
-----------
REPURCHASE AGREEMENTS 28.0%
BankAmerica Securities ($3,170,000 par
collateralized by U.S. Government
obligations in a pooled cash account,
dated 06/30/99, to be sold on 07/01/99 at
$3,170,445)............................... 3,170,000
DLJ ($2,000,000 par collateralized by U.S.
Government obligations in a pool cash
account, dated 06/30/99, to be sold on
07/01/99 at $2,000,267)................... 2,000,000
Goldman Sachs ($2,000,000 par
collateralized by U.S. Government
obligations in a pooled cash account,
dated 06/30/99, to be sold on 07/01/99 at
$2,000,269)............................... 2,000,000
-----------
TOTAL REPURCHASE AGREEMENTS................ 7,170,000
-----------
</TABLE>

<TABLE>
<CAPTION>
Discount
Par Yield on
Amount Maturity Date of Amortized
(000) Description Date Purchase Cost
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
CERTIFICATES OF DEPOSIT 21.1%
$ 800 Commerzbank US........ 02/01/00 5.000% $ 799,886
1,000 First Chicago NBD
Corp................. 09/01/99 4.970 1,000,000
800 National Westminster
Bank................. 01/07/00 5.010 799,806
800 Rabobank Nederland,
NV................... 08/10/99 4.860 800,009
1,000 Societe Generale...... 07/15/99 4.860 1,000,000
1,000 Westdeutsche
Landesbank........... 07/07/99 4.890 999,993
-----------
TOTAL CERTIFICATES OF DEPOSIT.............. 5,399,694
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS 11.8%
350 Federal Farm Credit
Bank Discount Note... 07/06/99 4.888 349,763
400 Federal Home Loan
Bank Consolidated
Discount Note........ 07/02/99 4.857 399,946
805 Federal Home Loan
Bank Consolidated
Discount Note........ 07/07/99 4.889 804,345
500 Federal Home Loan
Mortgage Corp.
Discount Note........ 07/26/99 4.880 498,316
1,000 Federal National
Mortgage Association
Discount Note........ 09/22/99 4.862 989,049
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS... 3,041,419
-----------
TOTAL INVESTMENTS 99.8%.................... 25,575,256
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.2%.......................... 45,750
-----------
NET ASSETS 100.0%.......................... $25,621,006
===========
</TABLE>

See Notes to Financial Statements

42
<PAGE> 109

MONEY MARKET PORTFOLIO STATEMENT OF ASSETS AND LIABILITIES

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Investments, at amortized cost which approximates market,
including repurchase agreements of $7,170,000............. $25,575,256
Cash........................................................ 615
Receivables:
Interest.................................................. 89,796
Portfolio Shares Sold..................................... 41,344
Other....................................................... 48,289
-----------
Total Assets.......................................... 25,755,300
-----------
LIABILITIES:
Payables:
Investment Advisory Fee................................... 4,826
Portfolio Shares Repurchased.............................. 701
Distributor and Affiliates................................ 572
Trustees' Deferred Compensation and Retirement Plans........ 114,464
Accrued Expenses............................................ 13,731
-----------
Total Liabilities....................................... 134,294
-----------
NET ASSETS.................................................. $25,621,006
===========
NET ASSETS CONSIST OF:
Capital..................................................... $25,620,996
Accumulated Undistributed Net Investment Income............. 10
-----------
NET ASSETS (Equivalent to $1.00 per share for 25,620,996
shares outstanding)....................................... $25,621,006
===========
</TABLE>

See Notes to Financial Statements

43
<PAGE> 110

MONEY MARKET PORTFOLIO STATEMENT OF OPERATIONS

For the Six Months Ended June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest.................................................... $692,416
--------
EXPENSES:
Investment Advisory Fee..................................... 70,482
Trustees' Fees and Related Expenses......................... 16,203
Custody..................................................... 13,669
Shareholder Services........................................ 7,927
Legal....................................................... 1,162
Other....................................................... 21,426
--------
Total Expenses.......................................... 130,869
Investment Advisory Fee Reduction....................... 46,272
--------
Net Expenses............................................ 84,597
--------
NET INVESTMENT INCOME....................................... $607,819
========
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $607,819
========
</TABLE>

See Notes to Financial Statements

44
<PAGE> 111

MONEY MARKET PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS

For the Six Months Ended June 30, 1999
and the Year Ended December 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 1999 December 31, 1998
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income....................................... $ 607,819 $ 1,061,603
----------- -----------
Distributions from Net Investment Income.................... (607,770) (1,061,807)
Distributions in Excess of Net Investment Income............ -0- (39)
----------- -----------
Distributions from and in Excess of Net Investment Income... (607,770) (1,061,846)
----------- -----------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES......... 49 (243)
----------- -----------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold................................... 12,244,254 31,396,945
Net Asset Value of Shares Issued Through Dividend
Reinvestment.............................................. 607,770 1,061,846
Cost of Shares Repurchased.................................. (13,940,744) (25,489,643)
----------- -----------
NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS.......... (1,088,720) 6,969,148
----------- -----------
TOTAL INCREASE/DECREASE IN NET ASSETS....................... (1,088,671) 6,968,905
NET ASSETS:
Beginning of the Period..................................... 26,709,677 19,740,772
----------- -----------
End of the Period (Including accumulated undistributed net
investment
income of $10 and $(39), respectively).................... $25,621,006 $26,709,677
=========== ===========
</TABLE>

See Notes to Financial Statements

45
<PAGE> 112

MONEY MARKET PORTFOLIO FINANCIAL HIGHLIGHTS

The following schedule presents financial highlights for one share of the
Portfolio outstanding throughout the periods indicated. (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Year Ended December 31,
Six Months Ended -----------------------------
June 30, 1999 1998 1997 1996 1995
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of the Period.................. $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- -----
Net Investment Income..................................... .021 .049 .049 .048 .0533
Less Distributions from Net Investment Income............. .021 .049 .049 .048 .0533
----- ----- ----- ----- -----
Net Asset Value, End of the Period........................ $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== =====
Total Return*............................................. 2.16%** 5.02% 5.06% 4.89% 5.46%
Net Assets at End of the Period (In millions)............. $25.6 $26.7 $19.7 $19.6 $21.6
Ratio of Expenses to Average Net Assets*.................. .60% .60% .60% .60% .60%
Ratio of Net Investment Income to Average Net Assets*..... 4.31% 4.88% 4.95% 4.78% 5.33%
* If certain expenses had not been assumed by Van Kampen,
Total Return would have been lower and the ratios would
have been as follows:
Ratio of Expenses to Average Net Assets................... .93% .99% .98% 1.29% .93%
Ratio of Net Investment Income to Average Net Assets...... 3.98% 4.49% 4.57% 4.10% 5.00%
</TABLE>

**Non-annualized

See Notes to Financial Statements

46
<PAGE> 113

NOTES TO FINANCIAL STATEMENTS

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

1. SIGNIFICANT ACCOUNTING POLICIES

Van Kampen Life Investment Trust (the "Trust") is registered under the
Investment Company Act of 1940, as amended, as a diversified open-end management
investment company comprised of eleven Portfolios: Asset Allocation Portfolio
("Asset Allocation"), Comstock Portfolio(1) ("Comstock"), Domestic Income
Portfolio ("Domestic Income"), Emerging Growth Portfolio(1) ("Emerging Growth"),
Enterprise Portfolio(1) ("Enterprise"), Global Equity Portfolio ("Global
Equity"), Government Portfolio ("Government"), Growth and Income Portfolio(1)
("Growth and Income"), Money Market Portfolio ("Money Market"), Morgan Stanley
Real Estate Securities Portfolio(1) ("Real Estate") and Strategic Stock
Portfolio(1) ("Strategic Stock") (collectively the "Portfolios"). Each Portfolio
is accounted for as a separate entity.

The goals of the Portfolios are as follows: Asset Allocation seeks a high
total investment return consistent with prudent risk; Comstock seeks capital
growth and income through investments in equity securities including common and
preferred stocks and securities convertible into common and preferred stocks.
Domestic Income seeks income as its primary objective and capital appreciation
as a secondary objective; Emerging Growth seeks capital appreciation by
investing principally in common stocks of small and medium sized companies;
Enterprise seeks capital appreciation by investing principally in common stocks;
Global Equity seeks long-term growth of capital through an internationally
diversified portfolio of equity securities of any nation, including the United
States; Government seeks high current return consistent with preservation of
capital; Growth and Income seeks long-term growth of capital and income by
investing primarily in income-producing equity securities including common
stocks and convertible securities; Money Market seeks protection of capital and
high current income by investing in short-term money market instruments; Real
Estate seeks long-term growth of capital by investing principally in securities
of companies operating in the real estate industry; and Strategic Stock seeks an
above average total return consistent with the preservation of invested capital,
by investing primarily in a portfolio of dividend paying equity securities
included in the Dow Jones Industrial Average or the Morgan Stanley Capital
International USA Index.

The following is a summary of significant accounting policies consistently
followed by the Trust 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.

Domestic Income's investments include lower rated and unrated debt
securities which may be more susceptible to a decline in value due to adverse
economic conditions than other investment grade holdings. These securities are
often subordinated to the prior claims of other senior lenders and uncertainties
exist as to an issuer's ability to meet principal and interest payments. Debt
securities rated below investment grade and comparable unrated securities
represented approximately 33% of Domestic Income's net assets at June 30, 1999.

- ---------------

(1) These Portfolios are included under a separate cover.

47
<PAGE> 114
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

The Portfolios may invest in repurchase agreements which are short-term
investments in which the Portfolios acquire ownership of a debt security and the
seller agrees to repurchase the security at a future time and specified price.
The Portfolios 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 Portfolios 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 Portfolios.

D. ORGANIZATIONAL COSTS--Global Equity has reimbursed Van Kampen Funds Inc. or
its affiliates (collectively "Van Kampen") for costs incurred in connection with
the Portfolio's organization in the amount of $6,828. These costs are being
amortized on a straight line basis over the 60 month period ending July 2, 2000.
The Adviser has agreed that in the event any of the initial shares of the
Portfolio originally purchased by Van Kampen are redeemed during the
amortization period, the Portfolio will be reimbursed for any unamortized
organizational costs in the same proportion as the number of shares redeemed
bears to the number of initial shares held at the time of redemption.

Each Portfolio intends to utilize provisions of the federal income tax laws
which allow each Portfolio 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. The following table presents the capital loss
carryforward at December 31, 1998 along with its expiration dates. The table
also presents the identified cost of investments at June 30, 1999 for federal
income tax

48
<PAGE> 115
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

purposes with the associated gross unrealized appreciation, gross unrealized
depreciation and net unrealized appreciation/depreciation on investments.

<TABLE>
<CAPTION>
ASSET DOMESTIC GLOBAL
ALLOCATION INCOME EQUITY
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Realized capital loss carryforward................... -- $ 1,171,850 $ 5,428
Expiration dates of capital loss carryforward........ -- 1999-2006 2006
Amount expiring on 12/31/99.......................... -- $ 409,491 --
Identified cost...................................... $51,091,188 $17,537,337 $ 2,290,997
Gross unrealized appreciation........................ 6,043,152 336,004 1,258,713
Gross unrealized depreciation........................ 1,237,283 765,972 85,935
Net unrealized appreciation/depreciation............. 4,805,869 (429,968) 1,172,778
</TABLE>

<TABLE>
<CAPTION>
MONEY
GOVERNMENT MARKET
- ------------------------------------------------------------------------------------------
<S> <C> <C>
Realized capital loss carryforward.......................... $ 7,323,324 $ 1,725
Expiration dates of capital loss carryforward............... 2000-2004 2003-2006
Amount expiring on 12/31/99................................. -- --
Identified cost............................................. $64,762,661 $25,575,256
Gross unrealized appreciation............................... 568,210 --
Gross unrealized depreciation............................... 1,190,687 --
Net unrealized appreciation/depreciation.................... (622,477) --
</TABLE>

Net realized gains or losses may differ for financial and tax reporting
purposes primarily as a result of post October 31 losses which are not
recognized for tax purposes until the first day of the following fiscal year and
the deferral of losses relating to wash sale transactions.

F. DISTRIBUTION OF INCOME AND GAINS--Money Market declares dividends from net
investment income and net realized gain/loss on each business day. Asset
Allocation, Domestic Income, Global Equity and Government declare dividends from
net investment income and net realized gains, if any, annually. Distributions
from net realized gains for book purposes may include short-term capital gains
and gains on option and futures transactions. All short-term capital gains and a
portion of option and futures gains are included in ordinary income for tax
purposes.

Due to inherent differences in the recognition of income, expenses and
realized gains/losses under generally accepted accounting principles and for
federal income tax purposes, the amount of distributable net investment income
may differ between book and federal income tax purposes for a particular period.
These differences are temporary in nature, but may result in book basis
distribution in excess of net investment income for certain periods.

G. FOREIGN CURRENCY TRANSLATION--The market values of foreign securities,
forward currency exchange contracts and other assets and liabilities denominated
in a foreign currency are translated into U.S. dollars based on quoted exchange
rates as of noon Eastern Standard Time. The cost of securities is determined
using historical exchange rates. Income and expenses are translated at
prevailing exchange rates when accrued or incurred. Gains and losses on the sale
of securities are not segregated for financial reporting purposes between
amounts arising from changes in exchange rates and amounts arising from changes
in the market prices of securities. Realized gain and loss on foreign currency
includes the net realized amount from the sale of currency and the amount
realized between trade date and settlement date on security transactions.

49
<PAGE> 116
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

H. EXPENSE REDUCTIONS--During the six months ended June 30, 1999, custody fees
were reduced by the following amounts as a result of credits earned on overnight
cash balances:

<TABLE>
<CAPTION>
ASSET DOMESTIC GLOBAL MONEY
ALLOCATION INCOME EQUITY GOVERNMENT MARKET
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Credits earned on overnight cash
balances................................ $2,176 $2,075 $ -0- $2,209 $ -0-
</TABLE>

In relation to Global Equity, the Adviser has entered into a subadvisory
agreement, dated April 1, 1997 with Morgan Stanley Dean Witter Investment
Management Inc. (the "Subadviser") to provide advisory services to the Portfolio
and the Adviser with respect to the Portfolio's investments. For these services,
the Adviser pays 50% of its advisory fees to the Subadviser.

Under the terms of the advisory agreement, if the total ordinary business
expenses, exclusive of taxes, distribution fees and interest, exceed .95% of the
average daily net assets of Asset Allocation, Domestic Income, Government or
Money Market, the Adviser will reimburse the Portfolio for the amount of the
excess. Additionally, the Adviser has voluntarily agreed to reimburse the
Portfolios for all expenses as a percent of average daily net assets in excess
of the following:

<TABLE>
<CAPTION>
- -------------------------------------------------------------------
<S> <C>
Asset Allocation, Domestic Income, Government and Money
Market...................................................... .60%
Global Equity............................................... 1.20%
</TABLE>

Other transactions with affiliates during the six months ended June 30, 1999
were as follows:

<TABLE>
<CAPTION>
MONEY
GOVERNMENT MARKET
- ----------------------------------------------------------------------------------------
<S> <C> <C>
Accounting.................................................. $14,900 $8,700
Shareholder servicing agent's fees.......................... 7,800 7,500
Legal (Skadden Arps)........................................ 1,500 1,200
</TABLE>

50
<PAGE> 117
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

through negotiations with the Portfolios' Board of Trustees and are based on
competitive benchmarks. Legal services are provided by Skadden, Arps, Slate,
Meagher & Flom (Illinois), counsel to the Portfolios, of which a trustee of the
Portfolios is an affiliated person.

Certain officers and trustees of the Portfolios are also officers and
directors of Van Kampen. The Portfolios do not compensate their officers or
trustees who are officers of Van Kampen.

The Portfolios provide deferred compensation and retirement plans for their
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 Trust. The maximum
annual benefit per trustee under the plan is $2,500 per portfolio.

At June 30, 1999, Van Kampen owned 95,241 shares of Global Equity.

3. CAPITAL TRANSACTIONS

For the six months ended June 30, 1999, share transactions were as follows:

<TABLE>
<CAPTION>
ASSET DOMESTIC GLOBAL
ALLOCATION INCOME EQUITY
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Beginning Shares......................................... 4,591,957 2,048,609 253,694
Sales.................................................... 83,035 390,993 8,277
Dividend Reinvestment.................................... 680,053 155,098 406
Repurchases.............................................. (577,965) (421,315) (24,964)
----------- ----------- ----------
Ending Shares............................................ 4,777,080 2,173,385 237,413
=========== =========== ==========
Capital at 6/30/99....................................... $46,712,526 $18,314,534 $2,291,442
=========== =========== ==========
</TABLE>

<TABLE>
<CAPTION>
MONEY
GOVERNMENT MARKET
- ---------------------------------------------------------------------------------------
<S> <C> <C>
Beginning Shares............................................ 5,947,274 26,709,716
Sales....................................................... 530,711 12,244,254
Dividend Reinvestment....................................... 305,002 607,770
Repurchases................................................. (552,015) (13,940,744)
----------- -----------
Ending Shares............................................... 6,230,972 25,620,996
=========== ===========
Capital at 6/30/99.......................................... $62,709,811 $25,620,996
=========== ===========
</TABLE>

51
<PAGE> 118
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

For the year ended December 31, 1998, share transactions were as follows:

<TABLE>
<CAPTION>
ASSET DOMESTIC GLOBAL
ALLOCATION INCOME EQUITY
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Beginning Shares......................................... 5,314,563 2,084,276 270,266
Sales.................................................... 330,901 719,808 64,891
Dividend Reinvestment.................................... 153,034 5,259 2,004
Repurchases.............................................. (1,206,541) (760,734) (83,467)
----------- ----------- ----------
Ending Shares............................................ 4,591,957 2,048,609 253,694
=========== =========== ==========
Capital at 12/31/98...................................... $44,946,853 $17,202,927 $2,502,119
=========== =========== ==========
</TABLE>

<TABLE>
<CAPTION>
MONEY
GOVERNMENT MARKET
- ----------------------------------------------------------------------------------------
<S> <C> <C>
Beginning Shares............................................ 5,892,077 19,740,568
Sales....................................................... 1,196,357 31,396,945
Dividend Reinvestment....................................... 58,944 1,061,846
Repurchases................................................. (1,200,104) (25,489,643)
----------- ------------
Ending Shares............................................... 5,947,274 26,709,716
=========== ============
Capital at 12/31/98......................................... $60,130,308 $ 26,709,716
=========== ============
</TABLE>

4. INVESTMENT TRANSACTIONS
During the period, the cost of purchases and proceeds from sales of investments,
including principal paydowns and excluding forward commitment transactions and
short-term investments, were:

<TABLE>
<CAPTION>
ASSET DOMESTIC GLOBAL
ALLOCATION INCOME EQUITY GOVERNMENT
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Purchases.................................... $17,947,314 $2,486,293 $ 48,558 $16,603,671
Sales........................................ 27,680,420 2,045,943 221,559 22,648,045
</TABLE>

5. DERIVATIVE FINANCIAL INSTRUMENTS

A derivative financial instrument in very general terms refers to a security
whose value is "derived" from the value of an underlying asset, reference rate
or index.

The Portfolios have a variety of reasons to use derivative instruments, such
as to attempt to protect the Portfolios against possible changes in the market
value of its portfolio, manage the Portfolio's effective yield, foreign currency
exposure, maturity and duration or to generate potential gain. All of the
Portfolios' holdings, including derivative instruments, are marked to market
each day with the change in value reflected in unrealized
appreciation/depreciation. Upon disposition, a realized gain or loss is
recognized accordingly, except when taking delivery of a security underlying a
futures or forward contract. In these instances, the recognition of gain or loss
is postponed until the disposal of the security underlying the futures or
forward contract.

Summarized below are the specific types of derivative financial instruments
used by the Portfolios.

52
<PAGE> 119
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

obligation under the futures contracts. During the period the futures contract
is open, payments are received from or made to the broker based upon changes in
the value of the contract (the variation margin). The risk of loss associated
with a futures contract is in excess of the variation margin reflected on the
Statement of Assets and Liabilities.
Transactions in futures contracts for the six months ended June 30, 1999,
were as follows:

<TABLE>
<CAPTION>
NUMBER OF
CONTRACTS
GOVERNMENT ----------
- ------------------------------------------------------------------------
<S> <C>
Outstanding at December 31, 1998............................ 154
Futures Opened.............................................. 717
Futures Closed.............................................. (798)
----
Outstanding at June 30, 1999................................ 73
====
</TABLE>

The futures contracts outstanding at June 30, 1999, and the descriptions and
unrealized appreciation/depreciation are as follows:

<TABLE>
<CAPTION>
UNREALIZED
NUMBER OF APPRECIATION/
CONTRACTS DEPRECIATION
- ---------------------------------------------------------------------------------------
<S> <C> <C>
GOVERNMENT
LONG CONTRACTS
U.S. Treasury Bonds--Sep 1999
(Current notional value of $115,906 per contract).... 48 $(39,384)
SHORT CONTRACTS
5-year U.S. Treasury Notes--Sep 1999
(Current notional value of $109,000 per contract).... 15 (589)
10-year U.S. Treasury Notes--Sep 1999
(Current notional value of $111,188 per contract).... 10 5,857
--- --------
73 $(34,116)
=== ========
</TABLE>

B. FORWARD COMMITMENTS--Domestic Income, Global Equity, and Government may trade
certain securities under the terms of forward commitments, whereby the
settlement for payment and delivery occurs at a specified future date. Forward
commitments are privately negotiated transactions between the Portfolio and
dealers. Upon executing a forward commitment and during the period of
obligation, the Portfolio maintains collateral of cash or securities in a
segregated account with its custodian in an amount sufficient to relieve the
obligation. If the intent of the Portfolio is to accept delivery of a security
traded under a forward bond purchase commitment, the commitment is recorded as a
long-term purchase. For forward bond purchase commitments for which security
settlement is not intended by the Portfolio, changes in the value of the
commitment are recognized by marking the commitment to market on a daily basis
with changes in value reflected as a component of unrealized
appreciation/depreciation. A forward currency contract is a commitment to
purchase or sell a foreign currency at a future date at a negotiated forward
rate. Upon the settlement of the contract, a realized gain or loss is recognized
and is included as a component of realized gain/loss on forwards. Purchasing
securities on a forward commitment involves a risk that the market value at the
time of delivery may be lower than the agreed upon purchase price resulting in
an unrealized loss. Selling securities on a forward commitment involves
different risks and can result in losses more significant than those arising
from the purchase of such securities. During the term of the commitment, the
Portfolio may sell the forward commitment and enter into a new forward
commitment, the effect of which is to extend the settlement date. In addition,
the Portfolio may occasionally close such forward commitments prior to delivery.
Risks may arise as a result of the potential liability of the counterparties to
meet the terms of their contracts. The Portfolio's market exposure from these
positions is equal to the Current Value noted below.

53
<PAGE> 120
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------

The forward currency contracts outstanding as of June 30, 1999 are as
follows:

<TABLE>
<CAPTION>
UNREALIZED
CURRENT APPRECIATION/
DESCRIPTION VALUE DEPRECIATION
- ------------------------------------------------------------------------------------------
<S> <C> <C>
GLOBAL EQUITY
LONG CONTRACTS
Australian Dollar, 46,271 expiring 07/01/99............... $30,588 $ 632
=======
SHORT CONTRACTS
Australian Dollar, 46,271 expiring 07/01/99............... $30,588 (1,588)
======= ------
$ (956)
======
</TABLE>

54
<PAGE> 121

VAN KAMPEN FUNDS

EQUITY FUNDS

FIXED-INCOME FUNDS
Income
Corporate Bond
Global Fixed Income
Global Government Securities
Government Securities
High Income Corporate Bond
High Yield
High Yield & Total Return
Limited Maturity Government
Short-Term Global Income
Strategic Income
U.S. Government
U.S. Government Trust for Income
Worldwide High Income
Tax Exempt Income
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
Capital Preservation
Reserve
Tax Free Money
Senior Loan Funds
Prime Rate Income Trust
Senior Floating Rate

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

55
<PAGE> 122

VAN KAMPEN LIFE INVESTMENT TRUST

BOARD OF TRUSTEES

J. MILES BRANAGAN

JERRY D. CHOATE

RICHARD M. DEMARTINI*

LINDA HUTTON HEAGY

R. CRAIG KENNEDY

JACK E. NELSON

DON G. POWELL*

PHILLIP B. ROONEY

FERNANDO SISTO

WAYNE W. WHALEN* - Chairman

SUZANNE H. WOOLSEY, PH.D.

PAUL G. YOVOVICH

OFFICERS

RICHARD F. POWERS, III*
President

DENNIS J. MCDONNELL*
Executive Vice President and Chief Investment Officer

A. THOMAS SMITH III*
Vice President and Secretary

JOHN L. SULLIVAN*
Vice President, Treasurer and Chief Financial Officer

CURTIS W. MORELL*
Vice President and Chief Accounting Officer

TANYA M. LODEN*
Controller

PETER W. HEGEL*
PAUL R. WOLKENBERG*
EDWARD C. WOOD, III*
Vice Presidents

INVESTMENT ADVISER

VAN KAMPEN
ASSET MANAGEMENT INC.
1 Parkview Plaza
P.O. Box 5555
Oakbrook Terrace, IL 60181-5555

INVESTMENT SUBADVISOR
(GLOBAL EQUITY PORTFOLIO)

MORGAN STANLEY DEAN WITTER INVESTMENT
MANAGEMENT INC.
1585 Broadway
New York, NY 10036

DISTRIBUTOR

VAN KAMPEN FUNDS INC.
1 Parkview Plaza
P.O. Box 5555
Oakbrook Terrace, IL 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.

(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.

56
<PAGE> 123

YEAR 2000 READINESS DISCLOSURE

<ARTICLE> 6
<SERIES>
<NUMBER> 111
<NAME> LIT COMSTOCK
<MULTIPLIER> 1

<S> <C>
<PERIOD-TYPE> 2-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> APR-30-1999
<PERIOD-END> JUN-30-1999
<INVESTMENTS-AT-COST> 1,049,264
<INVESTMENTS-AT-VALUE> 1,044,684
<RECEIVABLES> 26,276
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 3,344
<TOTAL-ASSETS> 1,074,304
<PAYABLE-FOR-SECURITIES> 10,367
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 13,353
<TOTAL-LIABILITIES> 23,720
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,044,412
<SHARES-COMMON-STOCK> 104,351
<SHARES-COMMON-PRIOR> 100,000
<ACCUMULATED-NII-CURRENT> 2,960
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 7,792
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (4,580)
<NET-ASSETS> 1,050,584
<DIVIDEND-INCOME> 3,735
<INTEREST-INCOME> 875
<OTHER-INCOME> 0
<EXPENSES-NET> (1,650)
<NET-INVESTMENT-INCOME> 2,960
<REALIZED-GAINS-CURRENT> 7,792
<APPREC-INCREASE-CURRENT> (4,580)
<NET-CHANGE-FROM-OPS> 6,172
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4,351
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 50,584
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,042
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 17,438
<AVERAGE-NET-ASSETS> 1,026,204
<PER-SHARE-NAV-BEGIN> 10.000
<PER-SHARE-NII> 0.028
<PER-SHARE-GAIN-APPREC> 0.040
<PER-SHARE-DIVIDEND> 0.000
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 10.068
<EXPENSE-RATIO> 0.95

</TABLE>

<ARTICLE> 6
<SERIES>
<NUMBER> 61
<NAME> LIT EMG CLASS A

<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<INVESTMENTS-AT-COST> 64,300,918
<INVESTMENTS-AT-VALUE> 83,104,125
<RECEIVABLES> 1,208,719
<ASSETS-OTHER> 1,370
<OTHER-ITEMS-ASSETS> 10,504
<TOTAL-ASSETS> 84,324,718
<PAYABLE-FOR-SECURITIES> 2,102,994
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 120,497
<TOTAL-LIABILITIES> 2,223,491
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 62,858,176
<SHARES-COMMON-STOCK> 2,975,618
<SHARES-COMMON-PRIOR> 1,477,759
<ACCUMULATED-NII-CURRENT> (102,234)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 542,078
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 18,803,207
<NET-ASSETS> 82,101,227
<DIVIDEND-INCOME> 39,378
<INTEREST-INCOME> 119,982
<OTHER-INCOME> 0
<EXPENSES-NET> (233,838)
<NET-INVESTMENT-INCOME> (74,478)
<REALIZED-GAINS-CURRENT> 2,234,166
<APPREC-INCREASE-CURRENT> 8,696,195
<NET-CHANGE-FROM-OPS> 10,855,883
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,876,262
<NUMBER-OF-SHARES-REDEEMED> (378,403)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 48,681,187
<ACCUMULATED-NII-PRIOR> (27,756)
<ACCUMULATED-GAINS-PRIOR> (1,692,088)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 191,412
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 271,270
<AVERAGE-NET-ASSETS> 55,476,688
<PER-SHARE-NAV-BEGIN> 22.615
<PER-SHARE-NII> (0.016)
<PER-SHARE-GAIN-APPREC> 4.992
<PER-SHARE-DIVIDEND> 0.000
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 27.591
<EXPENSE-RATIO> 0.85

</TABLE>

<ARTICLE> 6
<SERIES>
<NUMBER> 11
<NAME> LIT ENTP CLASS A

<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<INVESTMENTS-AT-COST> 99,984,346
<INVESTMENTS-AT-VALUE> 141,700,350
<RECEIVABLES> 4,226,265
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 53,481
<TOTAL-ASSETS> 145,980,096
<PAYABLE-FOR-SECURITIES> 4,752,247
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 232,359
<TOTAL-LIABILITIES> 4,984,606
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 88,967,415
<SHARES-COMMON-STOCK> 6,368,852
<SHARES-COMMON-PRIOR> 5,518,824
<ACCUMULATED-NII-CURRENT> 67,236
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 10,244,835
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 41,716,004
<NET-ASSETS> 140,995,490
<DIVIDEND-INCOME> 402,221
<INTEREST-INCOME> 122,293
<OTHER-INCOME> 0
<EXPENSES-NET> (388,167)
<NET-INVESTMENT-INCOME> 136,347
<REALIZED-GAINS-CURRENT> 10,338,185
<APPREC-INCREASE-CURRENT> (1,999,940)
<NET-CHANGE-FROM-OPS> 8,474,592
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (393,720)
<DISTRIBUTIONS-OF-GAINS> (9,274,929)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 979,538
<NUMBER-OF-SHARES-REDEEMED> (574,865)
<SHARES-REINVESTED> 445,355
<NET-CHANGE-IN-ASSETS> 17,426,267
<ACCUMULATED-NII-PRIOR> 324,609
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<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 323,141
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 416,062
<AVERAGE-NET-ASSETS> 130,461,278
<PER-SHARE-NAV-BEGIN> 22.390
<PER-SHARE-NII> 0.022
<PER-SHARE-GAIN-APPREC> 1.445
<PER-SHARE-DIVIDEND> (0.070)
<PER-SHARE-DISTRIBUTIONS> (1.649)
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 22.138
<EXPENSE-RATIO> 0.60

</TABLE>

<ARTICLE> 6
<SERIES>
<NUMBER> 91
<NAME> LIT GROWTH & INC

<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
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<SHARES-COMMON-PRIOR> 2,225,645
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<ACCUMULATED-NET-GAINS> 839,283
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 6,912,478
<NET-ASSETS> 45,095,414
<DIVIDEND-INCOME> 316,920
<INTEREST-INCOME> 83,391
<OTHER-INCOME> 0
<EXPENSES-NET> (144,279)
<NET-INVESTMENT-INCOME> 256,032
<REALIZED-GAINS-CURRENT> 1,304,545
<APPREC-INCREASE-CURRENT> 2,606,859
<NET-CHANGE-FROM-OPS> 4,167,436
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<DISTRIBUTIONS-OF-INCOME> (275,181)
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<NUMBER-OF-SHARES-SOLD> 793,584
<NUMBER-OF-SHARES-REDEEMED> (192,392)
<SHARES-REINVESTED> 19,203
<NET-CHANGE-IN-ASSETS> 12,864,847
<ACCUMULATED-NII-PRIOR> 265,142
<ACCUMULATED-GAINS-PRIOR> (465,262)
<OVERDISTRIB-NII-PRIOR> 0
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<GROSS-ADVISORY-FEES> 115,015
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<GROSS-EXPENSE> 189,884
<AVERAGE-NET-ASSETS> 38,793,414
<PER-SHARE-NAV-BEGIN> 14.481
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<PER-SHARE-NAV-END> 15.844
<EXPENSE-RATIO> 0.75

</TABLE>

<ARTICLE> 6
<SERIES>
<NUMBER> 18
<NAME> LIT MS REAL ESTATE
<MULTIPLIER> 1

<S> <C>
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<PERIOD-START> JAN-01-1999
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<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 5,768,235
<NET-ASSETS> 189,024,171
<DIVIDEND-INCOME> 4,062,632
<INTEREST-INCOME> 136,731
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<EXPENSES-NET> (1,033,977)
<NET-INVESTMENT-INCOME> 3,165,386
<REALIZED-GAINS-CURRENT> (2,049,123)
<APPREC-INCREASE-CURRENT> 13,293,381
<NET-CHANGE-FROM-OPS> 14,409,644
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<DISTRIBUTIONS-OF-INCOME> (11,849,805)
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<NUMBER-OF-SHARES-SOLD> 3,049,652
<NUMBER-OF-SHARES-REDEEMED> (5,591,043)
<SHARES-REINVESTED> 972,091
<NET-CHANGE-IN-ASSETS> (19,806,543)
<ACCUMULATED-NII-PRIOR> 11,817,690
<ACCUMULATED-GAINS-PRIOR> (6,772,498)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
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<GROSS-EXPENSE> 1,045,594
<AVERAGE-NET-ASSETS> 189,553,731
<PER-SHARE-NAV-BEGIN> 13.759
<PER-SHARE-NII> 0.364
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<PER-SHARE-DIVIDEND> (0.913)
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<PER-SHARE-NAV-END> 13.890
<EXPENSE-RATIO> 1.10

</TABLE>

<ARTICLE> 6
<SERIES>
<NUMBER> 101
<NAME> LIT STRATEGIC STOCK

<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
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<TOTAL-ASSETS> 29,709,539
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<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 57,148
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<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 25,511,673
<SHARES-COMMON-STOCK> 2,247,601
<SHARES-COMMON-PRIOR> 1,794,237
<ACCUMULATED-NII-CURRENT> 210,025
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 503,599
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3,319,218
<NET-ASSETS> 29,544,515
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<INTEREST-INCOME> 14,650
<OTHER-INCOME> 0
<EXPENSES-NET> (81,468)
<NET-INVESTMENT-INCOME> 217,560
<REALIZED-GAINS-CURRENT> 537,676
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<DISTRIBUTIONS-OF-GAINS> (61,873)
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</TABLE>

<ARTICLE> 6
<SERIES>
<NUMBER> 51
<NAME> LIT ASSET ALLOCATION
<MULTIPLIER> 1

<S> <C>
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<NUMBER-OF-SHARES-REDEEMED> (577,965)
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<PER-SHARE-GAIN-APPREC> (0.015)
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<PER-SHARE-NAV-END> 11.775
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</TABLE>

<ARTICLE> 6
<SERIES>
<NUMBER> 21
<NAME> LIT DOMESTIC INCOME
<MULTIPLIER> 1

<S> <C>
<PERIOD-TYPE> 6-MOS
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<PERIOD-START> JAN-01-1999
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<INVESTMENTS-AT-VALUE> 17,107,369
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<SHARES-COMMON-PRIOR> 2,048,609
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<EXPENSES-NET> (54,284)
<NET-INVESTMENT-INCOME> 664,196
<REALIZED-GAINS-CURRENT> (6,839)
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<GROSS-EXPENSE> 105,260
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<PER-SHARE-NAV-BEGIN> 8.748
<PER-SHARE-NII> 0.273
<PER-SHARE-GAIN-APPREC> (0.477)
<PER-SHARE-DIVIDEND> (0.580)
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<PER-SHARE-NAV-END> 7.964
<EXPENSE-RATIO> 0.60

</TABLE>

<ARTICLE> 6
<SERIES>
<NUMBER> 71
<NAME> LIT GLOBAL EQUITY
<MULTIPLIER> 1

<S> <C>
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<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
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<NET-ASSETS> 3,490,488
<DIVIDEND-INCOME> 32,942
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<EXPENSES-NET> (19,490)
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</TABLE>

<ARTICLE> 6
<SERIES>
<NUMBER> 31
<NAME> LIT GOVERNMENT
<MULTIPLIER> 1

<S> <C>
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</TABLE>

<ARTICLE> 6
<SERIES>
<NUMBER> 41
<NAME> LIT MONEY MARKET
<MULTIPLIER> 1

<S> <C>
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</TABLE>