VAN KAMPEN LIFE INVESTMENT TRUST, N-30D, 2000-02-25

VAN KAMPEN LIFE INVESTMENT TRUST
N-30D, 2000-02-25

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<PAGE> 1

TABLE OF CONTENTS

<TABLE>
<S> <C>
Letter to Policyholders.......................... 1
Economic Snapshot................................ 2
Comstock Portfolio Performance Results........... 3
Performance in Perspective..................... 4
Portfolio Management Review.................... 5
Portfolio of Investments....................... 7
Statement of Assets and Liabilities............ 9
Statement of Operations........................ 10
Statement of Changes in Net Assets............. 11
Financial Highlights........................... 12
Emerging Growth Portfolio Performance Results.... 13
Performance in Perspective..................... 14
Portfolio Management Review.................... 15
Portfolio of Investments....................... 17
Statement of Assets and Liabilities............ 19
Statement of Operations........................ 20
Statement of Changes in Net Assets............. 21
Financial Highlights........................... 22
Enterprise Portfolio Performance Results......... 23
Performance in Perspective..................... 24
Portfolio Management Review.................... 25
Portfolio of Investments....................... 27
Statement of Assets and Liabilities............ 29
Statement of Operations........................ 30
Statement of Changes in Net Assets............. 31
Financial Highlights........................... 32
Growth and Income Portfolio Performance
Results........................................ 33
Performance in Perspective..................... 34
Portfolio Management Review.................... 35
Portfolio of Investments....................... 37
Statement of Assets and Liabilities............ 39
Statement of Operations........................ 40
Statement of Changes in Net Assets............. 41
Financial Highlights........................... 42
Morgan Stanley Real Estate Portfolio Performance
Results........................................ 43
Performance in Perspective..................... 44
Portfolio Management Review.................... 45
Portfolio of Investments....................... 47
Statement of Assets and Liabilities............ 48
Statement of Operations........................ 49
Statement of Changes in Net Assets............. 50
Financial Highlights........................... 51
Strategic Stock Portfolio Performance Results.... 52
Performance in Perspective..................... 53
Portfolio Management Review.................... 54
Portfolio of Investments....................... 56
Statement of Assets and Liabilities............ 57
Statement of Operations........................ 58
Statement of Changes in Net Assets............. 59
Financial Highlights........................... 60
Notes to Financial Statements.................... 61
Report of Independent Accountants................ 68
</TABLE>

NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE.
<PAGE> 2

LETTER TO POLICYHOLDERS

January 20, 2000

Dear Policyholder,

As we enter a new century--and millennium--it seems appropriate to take a
look back at the progress that's been made over the last 100 years and how the
world of investing has changed over the generations. Although rapid advances in
technology and science have dramatically altered the world that we live in
today, one of the greatest shifts we've seen is the increasing importance of
investing for many Americans.

Once considered primarily for the wealthy, investing in the stock market is
now available to most people. In fact, almost 79 million individuals--who
represent almost half of all U.S. households--own stocks either directly or
through mutual funds. This is even more impressive when considering that just 16
years earlier, only 19 percent of households owned stocks. Another important
shift has been the need for retirement planning beyond a pension plan or Social
Security. The Investment Company Institute, the leading mutual fund industry
association, reports that 77 percent of all mutual fund shareholders earmarked
retirement as their primary financial goal in 1998.

Through all the changes in the investment environment over the past century,
the general principles that have made generations of investors successful remain
the same. Some that have stood the test of time include:

- INVESTING FOR THE LONG-TERM

- BASING INVESTMENT DECISIONS ON SOUND RESEARCH

- BUILDING A DIVERSIFIED PORTFOLIO

- BELIEVING IN THE VALUE OF PROFESSIONAL INVESTMENT ADVICE

While no one can predict the future, at Van Kampen we believe that these
ideas will remain important tenets for investors well into this century. As we
continue to focus on these principles, we hope that our decades of investment
experience can help bring you closer to your financial goals as we welcome the
new millennium.

Sincerely,

/s/ Richard F. Powers, III /s/ Dennis J. McDonnell
Richard F. Powers, III Dennis J. McDonnell
Chairman President
Van Kampen Asset Management Inc. Van Kampen Asset Management Inc.
</TABLE>

1
<PAGE> 3

ECONOMIC SNAPSHOT

ECONOMIC GROWTH

The nation's brisk rate of economic growth continued throughout 1999,
bringing the United States to the verge of its longest economic expansion on
record. High levels of consumer spending, a host of new jobs, and increasing
productivity kept the economy strong. Gross domestic product, the primary
measure of economic growth, increased 4.2 percent for the year, including an
impressive annualized rate of 5.7 percent for the third quarter and 5.8 percent
in the fourth quarter.

EMPLOYMENT

The job market remained vibrant throughout the year, with more than 2.7
million U.S. jobs created in 1999. In addition, unemployment dropped to 4.1
percent in October--its lowest rate in three decades. With jobs plentiful and
wages on the rise, most Americans were optimistic about the future. At the end
of the year the consumer confidence index hit its highest level since 1968.
Although wage pressures caused some concerns about the potential erosion of
corporate profits, productivity gains helped keep those concerns muted through
the end of the year.

INFLATION AND INTEREST RATES

Although the Consumer Price Index continued to reflect historically low
inflation--rising only 2.7 percent during 1999--concerns about future increases
in inflation were prevalent throughout the reporting period. The Federal Reserve
Board remained active in guarding against inflation and trying to temper
economic growth. The Fed reversed its three interest-rate cuts from the fall of
1998 by raising rates in June, August, and November 1999.

U.S. GROSS DOMESTIC PRODUCT
Seasonally Adjusted Annualized Rates
Third Quarter 1997 through Fourth Quarter 1999
[BAR GRAPH]

Source: Bureau of Economic Analysis

2
<PAGE> 4

PERFORMANCE RESULTS FOR THE PERIOD ENDED DECEMBER 31, 1999

VAN KAMPEN LIFE INVESTMENT TRUST

COMSTOCK PORTFOLIO

<TABLE>
<S> <C>
TOTAL RETURNS
Life-of-Portfolio cumulative total return based on NAV(1)... (5.53%)
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. In addition, the Portfolio is subject to other
risks. These risks include, but are not limited to: market risk--the possibility
that the market values of securities owned by the Portfolio will decline;
derivative investment risk--a derivative investment is one whose value depends
on (or is derived from) the value of an underlying asset, interest rate or index
and involves risks different from investment in the underlying security; and
manager risk--management may not be successful in selecting the best performing
securities and the Portfolio's performance may lag behind that of similar
portfolios. 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

PUTTING YOUR PORTFOLIO'S PERFORMANCE IN PERSPECTIVE

COMSTOCK PORTFOLIO

As you evaluate your progress toward achieving your financial goals, it is
important to track your investment performance at regular intervals. A
comparison of your Portfolio's performance to an applicable benchmark can:
- Illustrate the market environment in which your Portfolio is being
managed.
- Reflect the impact of favorable market trends or difficult market
conditions.
- Help you evaluate how your Portfolio's management team has responded to
opportunities and challenges.
The following graph compares your Portfolio's performance to that of the
Standard & Poor's 500 Index, and the Standard & Poor's 500 Barra Value Index*
over time. These indexes are broad-based, statistical composites that do not
include any commissions or fees that would be paid by an investor purchasing the
securities they represent. Such costs would lower the performance of the
indices. An investment cannot be made directly in an index.

GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
Van Kampen Life Investment Trust--Comstock Portfolio vs. the Standard &
Poor's 500 Index and the Standard & Poor's 500 Barra Value Index* (April 30,
1999, through December 31, 1999)
- ------------------------------
Inception Avg. Annual = -5.53%
- ------------------------------
[INVESTMENT PERFORMANCE GRAPH]

<TABLE>
<CAPTION>
VAN KAMPEN LIT-COMSTOCK STANDARD & POOR'S 500 BARRA
PORTFOLIO STANDARD & POOR'S 500 INDEX VALUE INDEX*
----------------------- --------------------------- ---------------------------
<S> <C> <C> <C>
Apr1999 10000 10000 10000
May1999 10060 9750 9823
Jun1999 10070 10312 10200
Jul1999 9650 9982 9886
Aug1999 9380 9919 9636
Sep1999 9080 9670 9259
Oct1999 9490 10274 9781
Nov1999 9350 10470 9724
Dec1999 9447 11106 10089
</TABLE>

The above chart reflects the performance of the Portfolio. The Portfolio's
performance assumes reinvestment of all distributions and is shown at net asset
value.

While past performance is not indicative of future performance, the above
information provides a broader vantage point from which to evaluate the
discussion of the Portfolio's performance found in the following pages.

* Since Lipper Analytical Services has reclassified how it categorizes its
indices, we will no longer be using Lipper comparisons because we believe the
new system is less applicable. As a result, the Lipper Growth and Income Fund
Index will not appear in this or future reports. In its place, we have included
the Standard & Poor's Barra Value Index, a second index that we believe
represents an additional point of comparison for the Portfolio. The Standard &
Poor's Barra Value Index contains companies with lower price-to-book ratios.

4
<PAGE> 6

PORTFOLIO MANAGEMENT REVIEW

COMSTOCK PORTFOLIO

The following is an interview with representatives of the adviser of the Van
Kampen Life Investment Trust--Comstock Portfolio. The representatives include B.
Robert Baker, Jr., senior portfolio manager, Kevin Holt and Jason Leder,
portfolio managers, and Stephen L. Boyd, chief investment officer for equity
investments. The following discussion reflects their views on the Portfolio's
performance since its inception on April 30, 1999, through December 31, 1999.

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

A In early May the Dow Jones Industrial Average--the country's most widely
known stock market index--first crossed the 11,000 milestone. Major
fluctuations followed, however, as the index nearly fell back to 10,000 in
a difficult third quarter before setting a new record high in December.

For value-oriented funds such as the Comstock Portfolio, most of the
period--with the exception of its first few weeks--was challenging because
investors continued to prefer growth stocks to value. This preference is
reflected in the differences between the S&P Barra Growth and the S&P Barra
Value indices during the reporting period: 19.97 percent versus 0.90 percent,
during the period from April 30 to December 31, 1999.

Q GIVEN THIS ENVIRONMENT, WHAT STRATEGIES DID YOU USE TO MANAGE THE
PORTFOLIO?

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 we believe 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, in our opinion, 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.

Because of overall market conditions, we generally found it challenging to
identify undervalued stocks with an improving outlook. Value stocks--and the
Portfolio--underperformed during most of the period, and many of the securities
we bought at the Portfolio's inception at low valuations were still undervalued
later in the year.

Q WHAT AREAS OF THE MARKET WAS THE PORTFOLIO MOST INVESTED IN, AND HOW DID
THOSE AREAS AFFECT PERFORMANCE DURING THE REPORTING PERIOD?

A The Portfolio continued to have significant weightings in the financial
service and electric utility sectors. Financial and utility stocks have
tended to perform poorly when interest rates are rising, and this period
was no exception. The Portfolio's large holdings in these areas
contributed to weak Portfolio performance during the reporting period. This
weakness, however, was partially balanced by the Portfolio's modest weighting in
technology, the market's strongest area during the period.

Electric utility stocks were especially hard hit in 1999. Nevertheless, we
believe that the valuations for these companies are now attractive enough that
legitimate concerns about the industry have already been amply factored into the
stock prices. We're maintaining our position in utilities, in the belief that
better days may lie ahead.

Q WHICH STOCKS HELPED THE PORTFOLIO'S PERFORMANCE?

A The largest contributor to the Portfolio's return was Check Point
Software, which develops secure computer networking environments for
businesses. This stock appreciated swiftly and steadily throughout the
reporting period. We have been gradually trimming our position because we
think the stock has become fairly valued. Other stocks that helped the
Portfolio's performance were Cognex (provider of machine-aided vision), BMC
Software (business software developer), and Comverse Technologies (maker of
telecommunications systems). Cognex remained in the Portfolio as of the end of
the reporting period, while we sold our holdings in BMC and Comverse.

5
<PAGE> 7

The Portfolio's investments in oil-drilling companies such as ENSCO and
Rowan were successful ones during the period. So were those in U.S. Steel and
Corus Group, steel companies that outperformed during the market's brief
second-quarter preference shift from growth to value.

Remember that not all stocks in the Portfolio performed favorably, and there
is no guarantee that any of these stocks will perform well in the future.

Q WHICH STOCKS HURT THE PORTFOLIO?

A The Portfolio was most hurt by its investment in two stocks that performed
extremely poorly during the reporting period: Waste Management and Philip
Morris. Waste Management's stock dropped precipitously during the
reporting period as questions surfaced about the company's management and
accounting practices. In response to these factors, we sold most of our stake in
the business.

Philip Morris, meanwhile, continued to face escalating legal difficulties
associated with numerous tobacco-industry lawsuits. Despite its legal troubles
and poor recent performance, however, we believe the company's high
dividend-yield and inexpensive valuation make this an attractive investment.

As mentioned earlier, the Portfolio's significant weighting in utilities and
financial companies also hurt performance. Some of the poorly performing
financial companies during the reporting period included Washington Mutual,
AMBAC, and BankAmerica, while weak-performing utilities included Texas
Utilities, New Century Energies, DTE Energy, and Reliant Energy.

Q HOW DID THE PORTFOLIO PERFORM OVERALL DURING 1999?

A Because of several underperforming securities and a significant weighting
in utilities and financial companies, the Portfolio had a difficult
period, returning -5.53 percent from its inception on April 30, 1999, to
December 31, 1999. By comparison, the Standard & Poor's 500 Index returned 11.06
percent, and the Standard & Poor's Barra Value Index returned 0.90 percent. The
S&P 500 Index is a broad-based, unmanaged index that reflects the general
performance of the stock market, and the S&P Barra Value Index is a broad-based
unmanaged index that reflects the general performance of value stocks.
Generally, the companies in the value index exhibit characteristics such as
lower price-to-earnings ratios, higher dividend yields, and lower historical and
predicted earnings growth.

Keep in mind that these indices are statistical composites that do not
include any commissions or fees that would be paid by an investor purchasing the
securities they represent. Such costs would lower the performance of the
indices. An investment cannot be made directly in an index. Please refer to the
footnotes and chart on page 3 for additional Portfolio performance results. Past
performance doesn't guarantee future results.

Q WHAT DO YOU SEE AHEAD FOR THE PORTFOLIO IN THE NEXT SIX MONTHS?

A Stock valuations are at unprecedented levels. As the valuations of growth
stocks continue to increase relative to those of value stocks, we are
hopeful that an eventual return to historical norms may occur and that
value may begin to outperform growth. When this might happen in this
growth-driven market is anyone's guess. In the meantime, we will continue to
focus on our "bottom up" stock-selection process, seeking to identify
undervalued stocks that meet our investment criteria.

6
<PAGE> 8

COMSTOCK PORTFOLIO PORTFOLIO OF INVESTMENTS

December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Description Shares Market Value
- ---------------------------------------------------------
<S> <C> <C>
COMMON STOCKS
CONSUMER DISTRIBUTION 4.7%
Albertson's, Inc. ................ 705 $ 22,736
Federated Department Stores,
Inc. (a)........................ 335 16,939
Ford Motor Co. ................... 100 5,344
Kroger Co. (a).................... 950 17,931
May Department Stores Co. ........ 225 7,256
Saks, Inc. (a).................... 330 5,136
----------
75,342
----------
CONSUMER NON-DURABLES 8.0%
ConAgra, Inc. .................... 400 9,025
Dial Corp. ....................... 300 7,294
Nabisco Holdings Corp., Class A... 200 6,325
Payless Shoesource, Inc. (a)...... 210 9,870
Philip Morris Cos., Inc. ......... 1,600 37,100
Ralston-Ralston Purina Group...... 400 11,150
Sara Lee Corp. ................... 1,140 25,151
Weyerhaeuser Co. ................. 300 21,544
----------
127,459
----------
CONSUMER SERVICES 0.9%
Computer Associates International,
Inc. ........................... 200 13,988
----------
ENERGY 9.0%
BP Amoco PLC--ADR
(United Kingdom)................ 180 10,676
Chevron Corp. .................... 190 16,459
Conoco, Inc., Class A............. 300 7,425
Conoco, Inc., Class B............. 1,220 30,347
Diamond Offshore Drilling,
Inc. ........................... 140 4,279
ENSCO International, Inc. ........ 280 6,405
Halliburton Co. .................. 450 18,113
Rowan Cos., Inc. (a).............. 270 5,856
ScottishPower PLC--ADR
(United Kingdom)................ 465 13,009
Texaco, Inc. ..................... 170 9,233
Ultramar Diamond Shamrock
Corp. .......................... 210 4,764
Unocal Corp. ..................... 290 9,733
USX--Marathon Group............... 260 6,419
----------
142,718
----------
FINANCE 17.8%
Allstate Corp. ................... 1,000 24,000
AMBAC Financial Group, Inc. ...... 510 26,616
Aon Corp. ........................ 380 15,200
Bank One Corp. ................... 280 8,977
Bank of America Corp. ............ 370 18,569
Bear Stearns Cos., Inc. .......... 270 11,542
Chase Manhattan Corp. ............ 170 13,207
Chubb Corp. ...................... 300 16,894
Everest Reinsurance Holdings,
Inc. ........................... 160 3,570
Federal Home Loan Mortgage
Corp. .......................... 100 4,706
FleetBoston Financial Corp. ...... 418 14,552
</TABLE>

<TABLE>
<CAPTION>
Description Shares Market Value
- ---------------------------------------------------------
<S> <C> <C>
FINANCE (CONTINUED)
LandAmerica Financial Group,
Inc. ........................... 120 $ 2,205
Liberty Financial Cos., Inc. ..... 70 1,606
Providian Financial Corp. ........ 490 44,621
Torchmark, Inc. .................. 310 9,009
Travelers Property Casualty Corp.,
Class A......................... 100 3,425
U.S. Bancorp...................... 1,050 25,003
Washington Mutual, Inc. .......... 980 25,480
Wells Fargo Co. .................. 380 15,366
----------
284,548
----------
HEALTHCARE 8.5%
American Home Products Corp. ..... 605 23,860
Baxter International, Inc. ....... 135 8,480
Columbia/HCA Healthcare Corp. .... 660 19,346
Tenet Healthcare Corp. (a)........ 2,540 59,690
United HealthCare Corp. .......... 460 24,437
----------
135,813
----------
PRODUCER MANUFACTURING 2.6%
Aventis SA--ADR (France).......... 440 25,025
Waste Management, Inc. ........... 920 15,812
----------
40,837
----------
RAW MATERIALS/PROCESSING
INDUSTRIES 9.9%
Barrick Gold Corp. ............... 280 4,953
Bethlehem Steel Corp. (a)......... 2,050 17,169
Boise Cascade Corp. .............. 390 15,795
Caterpillar, Inc. ................ 200 9,412
Freeport-McMoRan Copper & Gold,
Inc., Class B (a)............... 755 15,949
Homestake Mining Co. ............. 560 4,375
Imperial Chemical Industries
PLC--ADR (United Kingdom)....... 200 8,512
International Paper Co. .......... 479 27,034
Kimberly-Clark Corp. ............. 410 26,752
Louisiana-Pacific Corp. .......... 280 3,990
Placer Dome, Inc. ................ 470 5,053
USX-U.S. Steel Group.............. 590 19,470
----------
158,464
----------
TECHNOLOGY 4.3%
American Power Conversion
Corp. (a)....................... 420 11,077
Check Point Software Technologies
Ltd. (a)........................ 40 7,950
Cognex Corp. (a).................. 400 15,600
Gartner Group, Inc., Class
A (a)........................... 100 1,525
Hewlett-Packard Co. .............. 100 11,394
SunGard Data Systems, Inc. (a).... 860 20,425
----------
67,971
----------
TRANSPORTATION 0.3%
Canadian National Railway Co. .... 200 5,263
----------
</TABLE>

See Notes to Financial Statements

7
<PAGE> 9
COMSTOCK PORTFOLIO PORTFOLIO OF INVESTMENTS (CONTINUED)

December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Description Shares Market Value
- ---------------------------------------------------------
<S> <C> <C>
UTILITIES 17.8%
Bell Atlantic Corp. .............. 380 $ 23,394
Carolina Power & Light Co. ....... 180 5,479
Central & South West Corp. ....... 420 8,400
Constellation Energy Group........ 270 7,830
DTE Energy Co. ................... 390 12,236
Duke Energy Corp. ................ 300 15,037
Edison International.............. 460 12,046
Entergy Corp. .................... 180 4,635
FirstEnergy Corp. ................ 240 5,445
GPU, Inc. ........................ 260 7,784
IDACORP, Inc. .................... 320 8,580
Illinova Corp. ................... 400 13,900
New Century Energies, Inc. ....... 470 14,276
Northern States Power Co. ........ 180 3,510
NSTAR............................. 266 10,773
OGE Energy Corp. ................. 520 9,880
PG&E Corp. ....................... 310 6,355
Pinnacle West Capital Corp. ...... 150 4,584
Public Service Co. of New
Mexico.......................... 320 5,200
Public Service Enterprise Group... 300 10,444
Reliant Energy, Inc. ............. 1,240 28,365
Texas Utilities Co. .............. 1,390 49,432
Unicom Corp. ..................... 500 16,750
----------
284,335
----------
</TABLE>

<TABLE>
<CAPTION>
Description Market Value
- -----------------------------------------------------
<S> <C>
TOTAL LONG-TERM INVESTMENTS 83.8%
(Cost $1,413,776).................. $1,336,738
----------
SHORT-TERM INVESTMENTS 14.6%
REPURCHASE AGREEMENT 8.4%
State Street Bank & Trust Co.,
($134,000 par collateralized by U.S.
Government obligations in a pooled
cash account, dated 12/31/99, to be
sold on 01/03/00 at $134,034)........ 134,000
U.S. GOVERNMENT AGENCY OBLIGATION 6.2%
United States Treasury Bill ($100,000
par, yielding 5.12%, 02/24/00
maturity) (b)........................ 99,232
----------
TOTAL SHORT-TERM INVESTMENTS
(Cost $233,232).................... 233,232
----------
TOTAL INVESTMENTS 98.4%
(Cost $1,647,008).................. 1,569,970
OTHER ASSETS IN EXCESS OF
LIABILITIES 1.6%.................... 24,669
----------
NET ASSETS 100.0%..................... $1,594,639
==========
</TABLE>

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

ADR--American Depositary Receipt

See Notes to Financial Statements

8
<PAGE> 10

COMSTOCK PORTFOLIO STATEMENT OF ASSETS AND LIABILITIES

December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Total Investments (Cost $1,647,008)......................... $1,569,970
Cash........................................................ 13,711
Receivables:
Expense Reimbursement by Adviser.......................... 67,971
Investments Sold.......................................... 7,340
Dividends................................................. 2,914
Portfolio Shares Sold..................................... 45
Other....................................................... 36
----------
Total Assets.......................................... 1,661,987
----------
LIABILITIES:
Payables:
Distributor and Affiliates................................ 16,654
Investments Purchased..................................... 13,728
Accrued Expenses............................................ 30,605
Trustees' Deferred Compensation and Retirement Plans........ 6,361
----------
Total Liabilities..................................... 67,348
----------
NET ASSETS.................................................. $1,594,639
==========
NET ASSETS CONSIST OF:
Capital (Par value of $.01 per share with an unlimited
number of shares authorized).............................. $1,668,635
Accumulated Net Realized Gain............................... 8,752
Accumulated Distributions in Excess of Net Investment
Income.................................................... (5,710)
Net Unrealized Depreciation................................. (77,038)
----------
NET ASSETS.................................................. $1,594,639
==========
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER
SHARE
(Based on net assets of $1,594,639 and 171,239 shares of
beneficial interest issued and outstanding)............... $ 9.31
==========
</TABLE>

See Notes to Financial Statements

9
<PAGE> 11

COMSTOCK PORTFOLIO STATEMENT OF OPERATIONS

For the Period April 30, 1999 (Commencement of Investment Operations) to
December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends................................................... $ 16,116
Interest.................................................... 6,584
--------
Total Income............................................ 22,700
--------
EXPENSES:
Accounting.................................................. 22,140
Custody..................................................... 12,322
Reports to Shareholders..................................... 12,300
Audit....................................................... 9,840
Trustees' Fees and Related Expenses......................... 9,595
Shareholder Services........................................ 8,776
Investment Advisory Fee..................................... 4,642
Legal....................................................... 369
--------
Total Expenses.......................................... 79,984
Expense Reduction ($4,642 Investment Advisory Fee and
$67,971 Other)......................................... 72,613
Less Credits Earned on Cash Balances.................... 22
--------
Net Expenses............................................ 7,349
--------
NET INVESTMENT INCOME....................................... $ 15,351
========
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Gain........................................... $ 8,752
--------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... -0-
End of the Period......................................... (77,038)
--------
Net Unrealized Depreciation During the Period............... (77,038)
--------
NET REALIZED AND UNREALIZED LOSS............................ $(68,286)
========
NET DECREASE IN NET ASSETS FROM OPERATIONS.................. $(52,935)
========
</TABLE>

See Notes to Financial Statements

10
<PAGE> 12

COMSTOCK PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS

For the Period April 30, 1999 (Commencement of Investment Operations) to
December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Period Ended
December 31, 1999
- ------------------------------------------------------------------------------
<S> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income....................................... $ 15,351
Net Realized Gain........................................... 8,752
Net Unrealized Depreciation During the Period............... (77,038)
----------
Change in Net Assets from Operations........................ (52,935)
----------
Distributions from Net Investment Income.................... (15,351)
Distributions in Excess of Net Investment Income............ (5,710)
----------
Total Distributions from and in Excess of Net Investment
Income.................................................... (21,061)
----------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES......... (73,996)
----------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold................................... 662,801
Net Asset Value of Shares Issued Through Dividend
Reinvestment.............................................. 7,651
Cost of Shares Repurchased.................................. (1,817)
----------
NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS.......... 668,635
----------
TOTAL INCREASE IN NET ASSETS................................ 594,639
NET ASSETS:
Beginning of the Period..................................... 1,000,000
----------
End of Period (Including accumulated distributions in excess
of net investment income of $5,710)....................... $1,594,639
==========
</TABLE>

See Notes to Financial Statements

11
<PAGE> 13

COMSTOCK PORTFOLIO FINANCIAL HIGHLIGHTS

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

<TABLE>
<CAPTION>
April 30, 1999
(Commencement
of Investment
Operations)
to December 31, 1999
- ---------------------------------------------------------------------------------
<S> <C>
Net Asset Value, Beginning of the Period.................... $10.000
-------
Net Investment Income..................................... .101
Net Realized and Unrealized Gain.......................... (.655)
-------
Total from Investment Operations............................ (.554)
Less Distributions from and in Excess of Net Investment
Income.................................................... .134
-------
Net Asset Value, End of the Period.......................... $ 9.312
=======
Total Return*............................................... (5.53%)**
Net Assets at End of the Period (In millions)............... $ 1.6
Ratio of Expenses to Average Net Assets*.................... .95%
Ratio of Net Investment Income to Average Net Assets*....... 1.99%
Portfolio Turnover.......................................... 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..................... 10.36%
Ratio of Net Investment Income to Average Net Assets........ (7.42%)
</TABLE>

** Non-Annualized

See Notes to Financial Statements

12
<PAGE> 14

PERFORMANCE RESULTS FOR THE PERIOD ENDED DECEMBER 31, 1999

VAN KAMPEN LIFE INVESTMENT TRUST

EMERGING GROWTH PORTFOLIO

<TABLE>
<S> <C>
TOTAL RETURNS
One-year total return based on NAV(1)....................... 104.38%
Life-of-Portfolio average annual total return based on
NAV(1).................................................... 40.58%
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.
In addition, the Portfolio is subject to other risks. These risks include, but
are not limited to: market risk--the possibility that the market values of
securities owned by the Portfolio will decline; derivative investment risk--a
derivative investment is one whose value depends on (or is derived from) the
value of an underlying asset, interest rate or index and involves risks
different from investment in the underlying security; emerging growth companies
investment risk--the stocks of emerging growth companies can be subject to more
abrupt or erratic market movements than stocks of larger, more established
companies or the stock market in general; and manager risk--management may not
be successful in selecting the best performing securities and the Portfolio's
performance may lag behind that of similar portfolios. 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> 15

PUTTING YOUR PORTFOLIO'S PERFORMANCE IN PERSPECTIVE

EMERGING GROWTH PORTFOLIO

As you evaluate your progress toward achieving your financial goals, it is
important to track your investment performance at regular intervals. A
comparison of your Portfolio's performance to an applicable benchmark can:
- Illustrate the market environment in which your Portfolio is being
managed.
- Reflect the impact of favorable market trends or difficult market
conditions.
- Help you evaluate how your Portfolio's management team has responded to
opportunities and challenges.
The following graph compares your Portfolio's performance to that of the
Russell 2000 Index and the Standard & Poor's MidCap 400 Index* over time. These
indices are broad-based, statistical composites that do not include any
commissions or fees that would be paid by an investor purchasing the securities
they represent. Such costs would lower the performance of these indices. An
investment cannot be made directly in an index.

GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
Van Kampen Life Investment Trust--Emerging Growth Portfolio vs. the Russell
2000 Index and the Standard & Poor's MidCap 400 Index* (July 3, 1995,
through December 31, 1999)
- -----------------------------------
Portfolio's Total Return
1 Year Total Return = 104.38%
Inception Avg. Annual = 40.58%
- -----------------------------------
[GRAPH]

<TABLE>
<CAPTION>
VAN KAMPEN LIT-EMERGING STANDARD & POOR'S MIDCAP
GROWTH PORTFOLIO RUSSELL 2000 INDEX 400 INDEX*
----------------------- ------------------ ------------------------
<S> <C> <C> <C>
Jul 1995 10000.00 10000.00 10000.00
10860.00 10576.00 10509.00
11000.00 10795.00 10684.00
11270.00 10988.00 10974.00
11110.00 10496.00 10679.00
11460.00 10937.00 11126.00
Dec 1995 11710.00 11226.00 11130.00
11550.00 11214.00 11279.00
12140.00 11563.00 11642.00
12540.00 11799.00 11814.00
13500.00 12429.00 12161.00
14040.00 12919.00 12306.00
Jun 1996 13690.00 12389.00 12154.00
12350.00 11307.00 11319.00
13000.00 11963.00 11954.00
14180.00 12431.00 12505.00
13700.00 12239.00 12526.00
13950.00 12743.00 13212.00
Dec 1996 13660.00 13077.00 13261.00
14480.00 13339.00 13744.00
13250.00 13015.00 13613.00
12550.00 12401.00 13067.00
13040.00 12436.00 13391.00
14250.00 13819.00 14542.00
Jun 1997 14850.00 14411.00 14984.00
16360.00 15082.00 16449.00
16160.00 15427.00 16412.00
17450.00 16556.00 17390.00
16330.00 15829.00 16616.00
16110.00 15727.00 16844.00
Dec 1997 16450.00 16002.00 17534.00
16260.00 15749.00 17183.00
18020.00 16914.00 18587.00
19037.00 17611.00 19461.00
19287.00 17709.00 19798.00
18477.00 16755.00 18889.00
Jun 1998 20097.00 16790.00 19045.00
19537.00 15431.00 18287.00
15946.00 12435.00 14868.00
17676.00 13408.00 16293.00
17967.00 13955.00 17727.00
19437.00 14686.00 18592.00
Dec 1998 22628.00 15595.00 20877.00
24749.00 15802.00 20046.00
23118.00 14522.00 18971.00
25639.00 14749.00 19545.00
26110.00 16070.00 21067.00
25139.00 16305.00 21135.00
Jun 1999 27600.00 17042.00 22309.00
27360.00 16575.00 21814.00
28440.00 15961.00 21044.00
28800.00 15965.00 20439.00
32102.00 16029.00 21461.00
37003.00 16987.00 22561.00
Dec 1999 46247.00 18909.00 23946.00
</TABLE>

The above chart reflects the performance of the Portfolio. The Portfolio's
performance assumes reinvestment of all distributions and is shown at net asset
value.

* The Russell 2000 Index reflects the general performance of small-cap stocks
and was initially selected as a benchmark for the Portfolio's performance.
Based upon the Portfolio's asset composition, we believe the Standard & Poor's
MidCap 400 Index provides a more accurate broad-based benchmark for the Fund.
Therefore, the Russell 2000 Index will not be shown in future reports.

14
<PAGE> 16

PORTFOLIO MANAGEMENT REVIEW

EMERGING GROWTH PORTFOLIO

The following is an interview with the representatives of the adviser of the Van
Kampen Life Investment Trust--Emerging Growth Portfolio. The representatives
include Gary 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 The Dow Jones Industrial Average--perhaps the country's most widely
recognized stock market index--began the reporting period near 9200,
crossing several key milestones in the first half of the year: 10,000 in
March and 11,000 in May. Major fluctuations followed, however, as the
index nearly fell again to around 10,000 in the difficult third quarter before
once again lifting to a record high late in December. While the Dow performed
well overall during 1999, it was actually the technology-heavy NASDAQ stock
index that stole the show, returning an impressive 86 percent for the year.
However, these high returns helped to mask that not all stocks shared in the
good fortune. In fact, more stocks lost than gained value in 1999--the indices
were fueled by the outstanding performance of a relatively small group of
investments.

Q IN LIGHT OF THIS ENVIRONMENT, HOW DID YOU MANAGE THE PORTFOLIO?

A In all kinds of market conditions, we 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 sell stocks if their underlying companies' earnings estimates or valuations
are declining. We consistently manage the Portfolio from the "bottom up,"
meaning that we evaluate each company individually before deciding to invest.

The Portfolio's investment approach leads us to the areas of the market
where we believe we can find the best stocks at any given time. As a result,
during all of 1999 the Portfolio was invested heavily in companies taking
advantage of burgeoning technologies--such as the Internet and wireless
communications. This weighting significantly benefited the Portfolio's
performance, as stocks in these areas were overwhelmingly the best performers in
the stock market during the year.

Q WHAT INVESTMENTS MOST CONTRIBUTED TO THE PORTFOLIO'S RETURN?

A In the area of wireless communications, the Portfolio was most helped by
our investment in Qualcomm, the Portfolio's largest holding as of December
31, 1999. Qualcomm has pioneered CDMA (code division multiple access)
technology, which is rapidly becoming a standard used in wireless phones
worldwide.

The growth of the Internet generated a number of successful investment
opportunities for the Portfolio. Our second-largest holding, JDS Uniphase, is
helping to meet the growing demand for Internet infrastructure while VeriSign
also helped the Portfolio's results--the company is working to ensure the
security of Internet-based commercial transactions. In the Internet services
area, the Portfolio's performance was enhanced by two of the largest and best-
known companies in the field: Yahoo! and America Online. We also found success
investing in businesses that are developing systems to store the enormous
amounts of data generated in an on-line world. EMC and Veritas are both leaders
in this area, and in 1999 we saw especially good results stemming from the
Portfolio's investments in these companies.

Q DID ANY STOCKS HURT PERFORMANCE?

A The biggest drag on the Portfolio during 1999 was Compuware, which
develops business software solutions. The stock fell dramatically in
response to concerns that corporate spending on computer hardware,
software, and services would slow down in the face of companies' need to
focus on critical Y2K projects.

15
<PAGE> 17

Other disappointing stocks for the Portfolio included

- CSG Systems--Investors worried about declining future demand for the
company's automated customer-service and billing systems.

- American Power Conversion--This company saw its stock depreciate because
of surplus inventory and fears of declining demand for its
electrical-equipment products.

- USWeb--Investors reacted poorly to the company's numerous corporate
acquisitions. We completely eliminated a position in this stock late in
1999 when the market penalized the company for potentially overpaying to
merge with another company.

Q HOW DID THE PORTFOLIO PERFORM IN 1999?

A Because of successful stock selection--especially in the technology and
wireless communications areas--the Portfolio performed extremely well,
achieving a 12-month total return of 104.38 percent(1) as of December 31,
1999. By comparison the Standard & Poor's MidCap 400 Index returned 14.70
percent. There is no guarantee that the circumstances leading to this
performance will continue to occur in the future.

The Portfolio invests primarily in companies whose market capitalizations
fall within the range of the companies composing the Standard & Poor's MidCap
400 Index. The S&P MidCap 400 Index is a broad-based index that reflects the
general performance of 400 domestic mid-cap stocks. This index is a statistical
composite that doesn't include any commissions or fees that would be paid by an
investor purchasing the securities it represents. Such costs would lower the
performance of the index. An investment cannot be made directly in an index.
Please refer to the chart and footnotes on page 13 for additional Portfolio
performance results.

Q WHAT DO YOU ANTICIPATE AHEAD FOR THE PORTFOLIO?

A Barring any unforeseen events, we envision continued worldwide economic
health, low inflation, and strong earnings growth. Of course, our outlook
may in part depend on whether the Federal Reserve again increases interest
rates soon. Although recent rate increases have had only a moderately negative
effect on stock prices, an additional rate hike could have a more substantial
impact. We're also keeping our eye on stock valuations, because the higher they
get, the greater the negative impact on the Portfolio if investors were to lose
their enthusiasm for growth stocks. Regardless of the short-term market
environment, we believe that our best long-term course of action is to stick
with the Portfolio's investment discipline by focusing on companies with rising
earnings expectations and rising valuations.

16
<PAGE> 18

EMERGING GROWTH PORTFOLIO PORTFOLIO OF INVESTMENTS

December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Description Shares Market Value
- --------------------------------------------------------
<S> <C> <C>
COMMON STOCKS* 90.7%
CONSUMER DISTRIBUTION 2.8%
AnnTaylor Stores Corp. (a)....... 7,300 $ 251,394
BJ's Wholesale Club, Inc. (a).... 10,500 383,250
CDW Computer Centers, Inc. (a)... 4,600 361,675
Emulex Corp. (a)................. 3,800 427,500
Family Dollar Stores, Inc........ 14,800 241,425
Home Depot, Inc.................. 35,850 2,457,965
Kohl's Corp. (a)................. 800 57,750
Tiffany & Co..................... 27,600 2,463,300
Williams Sonoma, Inc. (a)........ 17,200 791,200
------------
7,435,459
------------
CONSUMER SERVICES 5.3%
CBS Corp. (a).................... 21,100 1,349,081
Clear Channel Communications,
Inc. (a)....................... 31,900 2,847,075
Comcast Corp., Class A........... 11,200 566,300
Entercom Communications Corp.
(a)............................ 5,000 330,000
Hispanic Broadcasting Corp.
(a)............................ 8,700 802,303
Infinity Broadcasting Corp.,
Class A (a).................... 15,125 547,336
InfoSpace.com, Inc. (a).......... 2,400 513,600
Omnicom Group, Inc............... 17,250 1,725,000
Spanish Broadcasting Systems,
Inc., Class A (a).............. 2,900 116,725
TMP Worldwide, Inc. (a).......... 9,900 1,405,800
UnitedGlobalCom, Inc., Class A
(a)............................ 2,000 141,250
Univision Communications, Inc.,
Class A (a).................... 23,400 2,391,187
Valassis Communications, Inc.
(a)............................ 15,350 648,538
Young & Rubicam, Inc............. 8,000 566,000
------------
13,950,195
------------
ENERGY 1.2%
Apache Corp...................... 30,150 1,113,666
BJ Services Co. (a).............. 13,800 577,012
Devon Energy Corp................ 8,400 276,150
Kerr-McGee Corp.................. 14,800 917,600
Vastar Resources, Inc............ 1,700 100,300
------------
2,984,728
------------
FINANCE 1.0%
Capital One Financial Corp....... 12,000 578,250
Lehman Brothers Holdings, Inc.... 17,100 1,448,156
Marsh & McLennan Cos., Inc....... 4,000 382,750
UnionBanCal Corp................. 8,400 331,275
------------
2,740,431
------------
HEALTHCARE 3.1%
Affymetrix, Inc. (a)............. 4,400 746,625
Allergan, Inc.................... 18,000 895,500
Biogen, Inc. (a)................. 16,300 1,377,350
Cree Research, Inc. (a).......... 7,000 597,625
Medimmune, Inc. (a).............. 24,000 3,981,000
QLT Phototherapeutics, Inc.
(a)............................ 8,800 517,000
------------
8,115,100
------------
</TABLE>

<TABLE>
<CAPTION>
Description Shares Market Value
- --------------------------------------------------------
<S> <C> <C>
PRODUCER MANUFACTURING 2.3%
ASM Lithography Holding NV -- ADR
(Netherlands) (a).............. 9,400 $ 1,069,250
Corning, Inc..................... 21,100 2,720,581
E-Tek Dynamics, Inc. (a)......... 4,700 632,738
Metromedia Fiber Network, Inc.,
Class A (a).................... 29,300 1,404,569
Zebra Technologies Corp., Class A
(a)............................ 5,400 315,900
------------
6,143,038
------------
TECHNOLOGY 70.7%
Adaptec, Inc. (a)................ 8,100 403,988
Adobe Systems, Inc............... 38,100 2,562,225
Advanced Fibre Communication,
Inc. (a)....................... 13,600 607,750
Altera Corp. (a)................. 27,200 1,348,100
Amdocs Ltd. (a).................. 11,900 410,550
America Online, Inc. (a)......... 38,300 2,889,256
Analog Devices, Inc. (a)......... 24,600 2,287,800
Applied Materials, Inc. (a)...... 9,500 1,203,531
Applied Micro Circuits Corp.
(a)............................ 15,200 1,934,200
Ariba, Inc. (a).................. 3,800 674,025
Bea Systems, Inc. (a)............ 24,400 1,706,475
Broadcom Corp., Class A (a)...... 15,050 4,099,244
BroadVision, Inc. (a)............ 35,000 5,952,187
Brocade Communications Systems,
Inc. (a)....................... 3,900 690,300
Check Point Software Technologies
Ltd. (a)....................... 10,500 2,086,875
Cisco Systems, Inc. (a).......... 16,700 1,788,988
Citrix Systems, Inc. (a)......... 23,300 2,865,900
Clarify, Inc. (a)................ 9,000 1,134,000
CommScope, Inc. (a).............. 9,300 374,906
Comverse Technology, Inc. (a).... 29,750 4,306,312
Concord EFS, Inc. (a)............ 20,100 517,575
Conexant Systems, Inc. (a)....... 82,900 5,502,487
Cypress Semiconductor Corp.
(a)............................ 8,500 275,188
Echostar Communications Corp.,
Class A (a).................... 51,300 5,001,750
Electronic Arts, Inc. (a)........ 16,000 1,344,000
EMC Corp. (a).................... 33,500 3,659,875
Exodus Communications, Inc.
(a)............................ 39,400 3,499,212
Flextronics International Corp.
(a)............................ 27,800 1,278,800
Foundry Networks, Inc. (a)....... 2,100 633,544
Gateway, Inc. (a)................ 5,300 381,931
Gemstar International Group Ltd.
(a)............................ 70,200 5,001,750
General Instrument Corp. (a)..... 12,350 1,049,750
i2 Technologies, Inc. (a)........ 4,700 916,500
Infonet Services Corp., Class B
(a)............................ 3,200 84,000
Jabil Circuit, Inc. (a).......... 7,500 547,500
JDS Uniphase Corp. (a)........... 78,000 12,582,375
Juniper Networks, Inc. (a)....... 2,600 884,000
KLA-Tencor Corp. (a)............. 12,800 1,425,600
Lam Research Corp. (a)........... 15,700 1,751,531
Legato Systems, Inc. (a)......... 25,500 1,754,719
LSI Logic Corp. (a).............. 59,600 4,023,000
Macromedia, Inc. (a)............. 13,350 976,219
McLeodUSA, Inc., Class A (a)..... 25,600 1,507,200
</TABLE>

See Notes to Financial Statements

17
<PAGE> 19
EMERGING GROWTH PORTFOLIO PORTFOLIO OF INVESTMENTS (CONTINUED)

December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Description Shares Market Value
- --------------------------------------------------------
<S> <C> <C>
TECHNOLOGY (CONTINUED)
|Mercury Interactive Corp. (a)... 17,200 $ 1,856,525
Microchip Technology, Inc. (a)... 4,800 328,500
Microstrategy, Inc. (a).......... 4,050 850,500
Motorola, Inc.................... 12,100 1,781,725
National Semiconductor Corp.
(a)............................ 20,000 856,250
Network Appliance, Inc. (a)...... 49,850 4,140,666
Network Solutions, Inc. (a)...... 11,100 2,414,944
Nokia Corp. -- ADR (Finland)..... 19,850 3,771,500
Nortel Networks Corp............. 29,700 2,999,700
Novellus Systems, Inc. (a)....... 2,500 306,328
Peregrine Systems, Inc. (a)...... 7,500 631,406
Phone.com, Inc. (a).............. 5,600 649,250
PMC-Sierra, Inc. (a)............. 10,500 1,683,281
Portal Software, Inc. (a)........ 4,100 421,788
QLogic Corp. (a)................. 13,550 2,166,306
QUALCOMM, Inc. (a)............... 72,200 12,716,225
Rational Software Corp. (a)...... 20,500 1,007,063
Razorfish, Inc. (a).............. 2,800 266,350
Real Networks, Inc. (a).......... 12,200 1,467,813
Research In Motion Ltd. (a)...... 800 36,950
S1 Corp. (a)..................... 5,000 390,625
Sanmina Corp. (a)................ 9,200 918,850
Sapient Corp. (a)................ 9,900 1,395,281
Scient Corp. (a)................. 4,200 363,038
Scientific-Atlanta, Inc.......... 19,000 1,056,875
SDL, Inc. (a).................... 9,850 2,147,300
Siebel Systems, Inc. (a)......... 41,500 3,486,000
Solectron Corp. (a).............. 15,200 1,445,900
STMicroelectronics NV -- ADR
(Netherlands).................. 17,600 2,665,300
Sun Microsystems, Inc. (a)....... 27,200 2,106,300
Sycamore Networks, Inc. (a)...... 1,650 508,200
Taiwan Semiconductor -- ADR
(Taiwan) (a)................... 16,808 756,360
</TABLE>

<TABLE>
<CAPTION>
Description Shares Market Value
- --------------------------------------------------------
<S> <C> <C>
TECHNOLOGY (CONTINUED)
Texas Instruments, Inc........... 45,350 $ 4,393,281
VeriSign, Inc. (a)............... 41,300 7,885,719
Veritas Software Corp. (a)....... 61,500 8,802,187
Viant Corp. (a).................. 2,500 247,500
Vignette Corp. (a)............... 7,400 1,206,200
Vishay Intertechnology, Inc.
(a)............................ 7,000 221,375
Vitesse Semiconductor Corp.
(a)............................ 55,500 2,910,281
Western Wireless Corp., Class A
(a)............................ 23,200 1,548,600
Xilinx, Inc. (a)................. 60,400 2,746,313
Yahoo!, Inc. (a)................. 10,800 4,673,025
------------
186,152,698
------------
UTILITIES 4.3%
AT&T Corp., Class A (a).......... 25,900 1,469,825
Calpine Corp. (a)................ 12,500 800,000
Charter Communications, Inc.,
Class A (a).................... 13,700 299,688
Nextel Communications, Inc.,
Class A (a).................... 24,800 2,557,500
NEXTLINK Communications, Inc.,
Class A (a).................... 13,400 1,113,038
RF Micro Devices, Inc. (a)....... 27,900 1,909,406
Telephone & Data Systems, Inc.... 9,400 1,184,400
VoiceStream Wireless Corp. (a)... 14,200 2,020,837
------------
11,354,694
------------
TOTAL LONG-TERM INVESTMENTS 90.7%
(Cost $139,518,970).................... 238,876,343
REPURCHASE AGREEMENT 8.4%
Warburg Dillon Read ($22,167,000 par
collateralized by U.S. Government
obligations in a pooled cash account,
dated 12/31/99, to be sold on 01/03/00
at $22,171,803)
(Cost $22,167,000).....................
22,167,000
------------
TOTAL INVESTMENTS 99.1%
(Cost $161,685,970).................... 261,043,343
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.9%...................... 2,449,189
------------
NET ASSETS 100.0%....................... $263,492,532
============
</TABLE>

(a) Non-income producing security as this stock currently does not declare
dividends.
ADR -- American Depositary Receipt
* The common stocks are classified by sectors which represent broad groupings of
related industries.

See Notes to Financial Statements

18
<PAGE> 20

EMERGING GROWTH PORTFOLIO STATEMENT OF ASSETS AND LIABILITIES

December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Total Investments (Cost $161,685,970)....................... $261,043,343
Cash........................................................ 2,637,632
Receivables:
Dividends................................................. 15,376
Portfolio Shares Sold..................................... 4,718
Interest.................................................. 1,601
Unamortized Organizational Costs............................ 681
Other....................................................... 2,474
------------
Total Assets.......................................... 263,705,825
------------
LIABILITIES:
Payables:
Investment Advisory Fee................................... 130,752
Distributor and Affiliates................................ 1,833
Trustees' Deferred Compensation and Retirement Plans........ 47,249
Accrued Expenses............................................ 33,459
------------
Total Liabilities..................................... 213,293
------------
NET ASSETS.................................................. $263,492,532
============
NET ASSETS CONSIST OF:
Capital (Par value of $.01 per share with an unlimited
number of shares authorized).............................. $163,220,121
Net Unrealized Appreciation................................. 99,357,373
Accumulated Net Realized Gain............................... 962,152
Accumulated Net Investment Loss............................. (47,114)
------------
NET ASSETS.................................................. $263,492,532
============
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER
SHARE
(Based on net assets of $263,492,532 and 5,700,230 shares
of beneficial interest issued and outstanding)............ $ 46.22
============
</TABLE>

See Notes to Financial Statements

19
<PAGE> 21

EMERGING GROWTH PORTFOLIO STATEMENT OF OPERATIONS

For the Year Ended December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest.................................................... $ 464,241
Dividends................................................... 146,443
-----------
Total Income............................................ 610,684
-----------
EXPENSES:
Investment Advisory Fee..................................... 623,083
Custody..................................................... 37,908
Trustees' Fees and Related Expenses......................... 25,469
Accounting.................................................. 25,931
Legal....................................................... 8,177
Amortization of Organizational Costs........................ 1,365
Other....................................................... 64,088
-----------
Total Expenses.......................................... 786,021
Investment Advisory Fee Reduction....................... 28,250
Less Credits Earned on Cash Balances.................... 292
-----------
Net Expenses............................................ 757,479
-----------
NET INVESTMENT LOSS......................................... $ (146,795)
===========
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Gain........................................... $ 2,654,240
-----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 10,107,012
End of the Period......................................... 99,357,373
-----------
Net Unrealized Appreciation During the Period............... 89,250,361
-----------
NET REALIZED AND UNREALIZED GAIN............................ $91,904,601
===========
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $91,757,806
===========
</TABLE>

See Notes to Financial Statements

20
<PAGE> 22

EMERGING GROWTH PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS

For the Years Ended December 31, 1999 and 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Year Ended Year Ended
December 31, 1999 December 31, 1998
- --------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Loss......................................... $ (146,795) $ (42,769)
Net Realized Gain/Loss...................................... 2,654,240 (1,437,065)
Net Unrealized Appreciation During the Period............... 89,250,361 8,165,916
------------ -----------
Change in Net Assets from Operations........................ 91,757,806 6,686,082
Distributions in Excess of Net Investment Income............ -0- (4,851)
------------ -----------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES......... 91,757,806 6,681,231
------------ -----------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold................................... 168,226,421 25,418,092
Net Asset Value of Shares Issued Through Dividend
Reinvestment.............................................. -0- 4,851
Cost of Shares Repurchased.................................. (29,911,735) (9,175,988)
------------ -----------
NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS.......... 138,314,686 16,246,955
------------ -----------
TOTAL INCREASE IN NET ASSETS................................ 230,072,492 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 $47,114 and $27,756, respectively)..................... $263,492,532 $33,420,040
============ ===========
</TABLE>

See Notes to Financial Statements

21
<PAGE> 23

EMERGING GROWTH PORTFOLIO FINANCIAL HIGHLIGHTS

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

<TABLE>
<CAPTION>
July 3, 1995
(Commencement
Year Ended December 31, of Investment
---------------------------------------- Operations) to
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............................. (.012) (.014) (.007) (.016) (.08)
Net Realized and Unrealized Gain................ 23.619 6.186 2.797 1.956 1.80
------- ------- ------- ------- -------
Total from Investment Operations................ 23.607 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.............. $46.222 $22.615 $16.450 $13.660 $ 11.72
======= ======= ======= ======= =======
Total Return.................................... 104.38% 37.56% 20.42% 16.55% 17.20%**
Net Assets at End of the Period (In millions)... $263.5 $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*....................................... (.17%) (.23%) (.11%) (.17%) (1.45%)
Portfolio Turnover.............................. 96% 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......... .88% 1.23% 2.14% 3.28% 5.40%
Ratio of Net Investment Loss to Average Net
Assets........................................ (.20%) (.61%) (1.40%) (2.60%) (4.35%)
</TABLE>

** Non-Annualized

See Notes to Financial Statements

22
<PAGE> 24

PERFORMANCE RESULTS FOR THE PERIOD ENDED DECEMBER 31, 1999

VAN KAMPEN LIFE INVESTMENT TRUST

ENTERPRISE PORTFOLIO

<TABLE>
<S> <C>
TOTAL RETURNS
One-year total return based on NAV(1)....................... 25.85%
Five-year average annual total return based on NAV(1)....... 28.57%
Ten-year average annual total return based on NAV(1)........ 17.58%
Life-of-Portfolio average annual total return based on
NAV(1).................................................... 14.47%
Commencement date........................................... 04/07/86
</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.
In addition, the Portfolio is subject to other risks. These risks include, but
are not limited to: market risk--the possibility that the market values of
securities owned by the Portfolio will decline; derivative investment risk--a
derivative investment is one whose value depends on (or is derived from) the
value of an underlying asset, interest rate or index and involves risks
different from investment in the underlying security; and manager risk--
management may not be successful in selecting the best performing securities and
the Portfolio's performance may lag behind that of similar portfolios. 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.

23
<PAGE> 25

PUTTING YOUR PORTFOLIO'S PERFORMANCE IN PERSPECTIVE

ENTERPRISE PORTFOLIO

As you evaluate your progress toward achieving your financial goals, it is
important to track your investment performance at regular intervals. A
comparison of your Portfolio's performance to an applicable benchmark can:
- Illustrate the general market environment in which your Portfolio is being
managed.
- Reflect the impact of favorable market trends or difficult market
conditions.
- Help you evaluate how your Portfolio's management team has responded to
opportunities and challenges.
The following graph compares your Portfolio's performance to that of the
Standard & Poor's 500 Index over time. This index is a broad-based, statistical
composite that does not include any commissions or fees that would be paid by an
investor purchasing the securities it represents. Such costs would lower the
performance of the index. An investment cannot be made directly in an index.

GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
Van Kampen Life Investment Trust--Enterprise Portfolio vs. the Standard &
Poor's 500 Index
(December 31, 1989, through December 31, 1999)
- -----------------------------------
Portfolio's Total Return
1 Year Avg. Annual = 25.85%
5 Year Avg. Annual = 28.57%
10 Year Avg. Annual = 17.58%
- -----------------------------------
[GRAPH]

<TABLE>
<CAPTION>
VAN KAMPEN LIT-ENTERPRISE PORTFOLIO STANDARD & POOR'S 500 INDEX
----------------------------------- ---------------------------
<S> <C> <C>
Dec 1989 10000.00 10000.00
9212.00 9312.00
9451.00 9391.00
9655.00 9698.00
9366.00 9437.00
10255.00 10305.00
10229.00 10305.00
9980.00 10251.00
9019.00 9284.00
8539.00 8895.00
8459.00 8836.00
9019.00 9365.00
Dec 1990 9316.00 9689.00
9667.00 10091.00
10286.00 10770.00
10590.00 11091.00
10554.00 11095.00
11119.00 11523.00
10535.00 11066.00
11035.00 11563.00
11406.00 11790.00
11310.00 11658.00
11602.00 11796.00
11225.00 11278.00
Dec 1991 12706.00 12628.00
12500.00 12376.00
12699.00 12495.00
12358.00 12310.00
12375.00 12653.00
12488.00 12666.00
12176.00 12545.00
12640.00 13038.00
12394.00 12726.00
12706.00 12940.00
12981.00 12967.00
13492.00 13359.00
Dec 1992 13658.00 13588.00
13754.00 13684.00
13841.00 13828.00
14158.00 14180.00
13720.00 13820.00
14076.00 14133.00
14028.00 14247.00
13990.00 14171.00
14403.00 14659.00
14692.00 14614.00
14605.00 14897.00
14221.00 14705.00
Dec 1993 14885.00 14952.00
15385.00 15438.00
15201.00 14974.00
14425.00 14390.00
14629.00 14555.00
14609.00 14736.00
14228.00 14451.00
14650.00 14906.00
15163.00 15467.00
14650.00 15157.00
14814.00 15474.00
14239.00 14863.00
Dec 1994 14381.00 15155.00
14857.00 15523.00
15460.00 16083.00
15913.00 16626.00
16300.00 17091.00
16946.00 17711.00
17298.00 18208.00
18015.00 18786.00
18085.00 18780.00
18731.00 19650.00
18367.00 19552.00
19295.00 20355.00
Dec 1995 19699.00 20829.00
20450.00 21509.00
21134.00 21658.00
21308.00 21946.00
22085.00 22241.00
22806.00 22749.00
22237.00 22929.00
20933.00 21880.00
21724.00 22291.00
23430.00 23632.00
23749.00 24249.00
25289.00 26029.00
Dec 1996 24583.00 25599.00
26397.00 27169.00
26231.00 27330.00
24657.00 26290.00
25853.00 27826.00
27707.00 29456.00
28841.00 30870.00
31630.00 33282.00
30833.00 31370.00
32825.00 33179.00
31278.00 32035.00
31891.00 33463.00
Dec 1997 32119.00 34128.00
32066.00 34474.00
35064.00 36903.00
37046.00 38878.00
37619.00 39231.00
36185.00 38493.00
37781.00 40158.00
36938.00 39692.00
30304.00 33905.00
32133.00 36171.00
34266.00 39076.00
36310.00 41386.00
Dec 1998 40148.00 43861.00
41762.00 45660.00
40040.00 44186.00
41682.00 46043.00
42320.00 47790.00
40985.00 46597.00
42824.00 49283.00
41624.00 47704.00
41372.00 47406.00
40985.00 46212.00
43462.00 49102.00
45591.00 50038.00
Dec 1999 50525.00 53078.00
</TABLE>

The above charts reflect the performance of the Portfolio. The Portfolio's
performance assumes reinvestment of all distributions and is shown at net asset
value.

24
<PAGE> 26

PORTFOLIO MANAGEMENT REVIEW

ENTERPRISE PORTFOLIO

The following is an interview with representatives of the adviser 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 GIVEN THIS ENVIRONMENT, WHAT STRATEGIES DID YOU USE TO MANAGE THE
PORTFOLIO?

A As we have stressed in prior reports, the Portfolio's investment
discipline leads us to purchase stocks that meet our criteria of positive future
fundamentals and attractive current valuations. 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 of our bottom-up approach to stock selection, market conditions
didn't have a direct impact on the Portfolio's results. The Portfolio's
performance during the reporting period was lifted by the outstanding results of
some of its top holdings, especially in technology. Nevertheless, some of our
long-time investments in more traditional areas--such as health care and grocery
stores--were big disappointments that hurt performance relative to the
Portfolio's peers during the reporting period.

Q WHAT STOCKS HELPED THE PORTFOLIO'S RETURN DURING 1999?

A Technology stocks continued to be the big winners, and most of the
Portfolio's best contributors to performance were in this area.

As of December 31, 1999, the Portfolio's largest holding was Cisco
Systems, a company whose products have become the backbone of the Internet.
Cisco, which makes the devices that enable computers on the Internet to
communicate with each other, represented 4.6 percent of the Portfolio's long-
term investment at year's end. The stock was an impressive performer during the
year and was the strongest contributor to the Fund's total return.

The Portfolio also benefited greatly from the performance of two large
technology companies that are leaders in their fields: Internet service provider
America Online and data-storage powerhouse EMC. Both companies are building on
their dominant role in their respective areas.

Broadcast and media stocks also helped results in 1999. The Portfolio's
holdings in CBS, Clear Channel Communications, and Chancellor Media provided
positive contributions. But the Portfolio's best performer in this area was
Univision, the nation's largest Spanish-language television network. The company
has been able to capitalize on the increasing economic importance of Spanish
speakers in the United States.

Keep in mind that not all securities in the Portfolio performed as well,
nor is there any guarantee they will continue to do so in the future.

25
<PAGE> 27

Q WHAT STOCKS HURT THE PORTFOLIO'S PERFORMANCE?

A Two of the Portfolio's longstanding holdings in the grocery industry,
Safeway and Kroger, were among the weakest performers. Investors sold these and
other grocery-store companies primarily because of concerns about Internet's
potential impact on the industry and slowing sales growth.

Waste Management and Philip Morris, two of the Portfolio's large holdings
at the beginning of 1999, saw their stock prices plummet during the year. Waste
Management's troubles began when word leaked that the company's management used
questionable accounting methods. We sold the Portfolio's position in the
company, but not in time to avoid a negative effect on the Portfolio's return.
Philip Morris, meanwhile, continued to languish as a result of ongoing
litigation involving the tobacco industry. This poor performance had a
significant impact on the Portfolio because Philip Morris was the largest
holding at the beginning of the reporting period. Fortunately, we decided to
sell this stock relatively early in the year and thus avoided the brunt of the
stock's continued weakness.

Not all technology stocks outperformed in 1999. Two of the Portfolio's
stocks in this area--Compuware and Network Associates--were among its worst
performers during the year. Compuware suffered from concerns about their
accounting practices as well as uncertainty about their growth prospects, while
Network Associates failed to meet earnings expectations because of problems
concerning the company's aggressive expansion through corporate acquisitions.

Q HOW DID THE PORTFOLIO PERFORM?

A The strong overall performance of most technology stocks helped fuel the
Portfolio's results during the reporting period. As a result, the Portfolio
achieved a 12-month total return of 25.85 percent(1) as of December 31, 1999. By
comparison, the Standard & Poor's 500 Index returned 21.04 percent. The S&P 500
is a broad-based, unmanaged index that reflects the general performance of the
stock market. Past performance does not guarantee future results.

This index is a statistical composite that doesn't include any commissions
or fees that would be paid by an investor purchasing the securities it
represents. Such costs would lower the performance of the index. An investment
cannot be made directly in an index. Please refer to the footnotes and chart on
page 23 for additional Portfolio performance results.

Q WHAT DO YOU SEE AHEAD FOR THE PORTFOLIO?

A Barring any unforeseen events, we envision continued worldwide economic
health, slightly rising but contained inflation, and moderate earnings growth.
Of course, our outlook will in part depend on whether the Federal Reserve again
increases interest rates. Although recent rate increases have had only a
moderate effect on stock prices, further increases could have a more significant
impact. The overall stock market and growth stock valuations have historically
been hurt by rising interest rates. Regardless of the short-term market
environment, we believe that our best long-term course of action is to stick
with the Portfolio's investment discipline by focusing on companies that have
positive earnings outlooks combined with attractive valuations.

26
<PAGE> 28

ENTERPRISE PORTFOLIO PORTFOLIO OF INVESTMENTS

December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Description Shares Market Value
- -------------------------------------------------------
<S> <C> <C>
COMMON STOCKS* 87.9%
CONSUMER DISTRIBUTION 5.9%
Costco Wholesale Corp. (a)....... 7,700 $ 702,625
Dayton Hudson Corp............... 19,500 1,432,031
Home Depot, Inc.................. 51,000 3,496,688
Tandy Corp. ..................... 20,700 1,018,181
Wal-Mart Stores, Inc. ........... 52,000 3,594,500
------------
10,244,025
------------
CONSUMER DURABLES 0.4%
Harley-Davidson, Inc. ........... 10,500 672,656
------------
CONSUMER NON-DURABLES 3.9%
Anheuser-Busch Cos., Inc. ....... 8,600 609,525
Colgate-Palmolive Co. ........... 7,000 455,000
Jones Apparel Group, Inc. (a).... 33,100 897,838
Kimberly-Clark Corp. ............ 9,400 613,350
Pepsi Bottling Group, Inc........ 47,600 788,375
Procter & Gamble Co. ............ 14,000 1,533,875
Quaker Oats Co. ................. 20,700 1,358,437
Seagram Co. Ltd. ................ 14,200 638,113
------------
6,894,513
------------
CONSUMER SERVICES 6.2%
CBS Corp. (a).................... 31,900 2,039,606
Clear Channel Communications,
Inc. (a)....................... 17,843 1,592,488
Hispanic Broadcasting Corp.
(a)............................ 10,000 922,188
Metro-Goldwyn-Mayer, Inc. (a).... 36,080 850,135
MGM Grand, Inc. ................. 8,000 402,500
Omnicom Group, Inc. ............. 19,100 1,910,000
Park Place Entertainment Corp.
(a)............................ 34,000 425,000
Time Warner, Inc. ............... 11,300 818,544
Univision Communications, Inc.,
Class A (a).................... 18,600 1,900,687
------------
10,861,148
------------
ENERGY 0.4%
Noble Drilling Corp. (a)......... 20,000 655,000
------------
FINANCE 8.6%
American Express Co.............. 8,000 1,330,000
American International Group,
Inc. .......................... 11,250 1,216,406
Bank of America Corp. ........... 15,000 752,812
Capital One Financial Corp. ..... 13,000 626,437
Charles Schwab Corp. ............ 17,000 652,375
Chase Manhattan Corp. ........... 10,000 776,875
Citigroup, Inc. ................. 19,075 1,059,855
Federal Home Loan Mortgage
Corp. ......................... 13,000 611,813
Federal National Mortgage
Association.................... 11,000 686,812
Fifth Third Bancorp. ............ 12,000 880,500
Firstar Corp. ................... 38,000 802,750
FleetBoston Financial Corp. ..... 22,000 765,875
Franklin Resources, Inc. ........ 12,000 384,750
Lehman Brothers Holdings,
Inc. .......................... 10,000 846,875
MBNA Corp. ...................... 20,000 545,000
MGIC Investment Corp. ........... 10,000 601,875
Providian Financial Corp. ....... 4,000 364,250
SLM Holding Corp. ............... 16,000 676,000
</TABLE>

<TABLE>
<CAPTION>
Description Shares Market Value
- -------------------------------------------------------
<S> <C> <C>
FINANCE (CONTINUED)
T. Rowe Price Associates,
Inc. .......................... 10,000 $ 369,375
UnumProvident Corp. ............. 11,000 352,688
Wells Fargo Co. ................. 18,000 727,875
------------
15,031,198
------------
HEALTHCARE 8.5%
American Home Products Corp. .... 31,500 1,242,281
Amgen, Inc. (a).................. 17,600 1,057,100
Baxter International, Inc. ...... 10,500 659,531
Biogen, Inc. (a)................. 9,600 811,200
Bristol-Myers Squibb Co. ........ 29,900 1,919,206
Guidant Corp. (a)................ 13,000 611,000
Johnson & Johnson ............... 21,000 1,955,625
Lincare Holdings, Inc. (a)....... 31,300 1,085,719
Merck & Co., Inc. ............... 20,000 1,341,250
PE Corp.-PE Biosystems Group..... 6,000 721,875
Pfizer, Inc. .................... 16,100 522,244
Schering-Plough Corp. ........... 28,500 1,202,344
Warner-Lambert Co. .............. 14,000 1,147,125
Wellpoint Health Networks, Inc.
(a)............................ 7,500 494,531
------------
14,771,031
------------
PRODUCER MANUFACTURING 5.4%
Corning, Inc. ................... 22,800 2,939,775
General Electric Co. ............ 34,500 5,338,875
Honeywell International, Inc. ... 20,250 1,168,172
------------
9,446,822
------------
RAW MATERIALS/PROCESSING INDUSTRIES 0.5%
USX-U.S. Steel Group............. 25,000 825,000
------------
TECHNOLOGY 44.4%
Adobe Systems, Inc. ............. 6,000 403,500
Altera Corp. (a)................. 15,500 768,219
America Online, Inc. (a)......... 57,600 4,345,200
Analog Devices, Inc. (a)......... 10,000 930,000
Apple Computer, Inc. (a)......... 7,000 719,687
Applied Materials, Inc. (a)...... 12,400 1,570,925
BMC Software, Inc. (a)........... 14,800 1,183,075
Cisco Systems, Inc. (a).......... 65,250 6,989,906
Citrix Systems, Inc. (a)......... 22,700 2,792,100
Computer Associates
International, Inc. ........... 7,000 489,563
Comverse Technology, Inc. (a).... 14,600 2,113,350
Echostar Communications Corp.,
Class A (a).................... 6,700 653,250
Electronic Arts, Inc. (a)........ 4,000 336,000
EMC Corp. (a).................... 36,300 3,965,775
First Data Corp. ................ 20,700 1,020,769
Gateway, Inc. (a)................ 13,000 936,812
General Instrument Corp. (a)..... 14,500 1,232,500
Intel Corp. ..................... 54,800 4,510,725
International Business Machines
Corp. ......................... 7,200 777,600
JDS Uniphase Corp. (a)........... 14,800 2,387,425
Linear Technology Corp. ......... 6,200 443,688
LSI Logic Corp. (a).............. 14,500 978,750
Lucent Technologies, Inc. ....... 39,975 2,990,630
</TABLE>

See Notes to Financial Statements

27
<PAGE> 29
ENTERPRISE PORTFOLIO PORTFOLIO OF INVESTMENTS (CONTINUED)

December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Description Shares Market Value
- -------------------------------------------------------
<S> <C> <C>
TECHNOLOGY (CONTINUED)
Micron Technology, Inc. ......... 16,000 $ 1,244,000
Microsoft Corp. (a).............. 64,500 7,530,375
Motorola, Inc. .................. 11,000 1,619,750
Nokia Corp. -- ADR (Finland)..... 19,300 3,667,000
Nortel Networks Corp. ........... 18,600 1,878,600
Oracle Corp. (a)................. 42,400 4,751,450
QUALCOMM, Inc. (a)............... 12,000 2,113,500
Sanmina Corp. (a)................ 13,500 1,348,312
Solectron Corp. (a) ............. 6,000 570,750
STMicroelectronics NV -- ADR
(Netherlands).................. 8,300 1,256,931
Sun Microsystems, Inc. (a)....... 36,000 2,787,750
Texas Instruments, Inc. ......... 20,800 2,015,000
Veritas Software Corp. (a)....... 4,500 644,063
Waters Corp. (a)................. 8,300 439,900
Xilinx, Inc. (a)................. 24,800 1,127,625
Yahoo!, Inc. (a)................. 4,000 1,730,750
------------
77,265,205
------------
TRANSPORTATION 0.2%
Kansas City Southern Industries,
Inc. .......................... 5,000 373,125
------------
</TABLE>

<TABLE>
<CAPTION>
Description Shares Market Value
- -------------------------------------------------------
<S> <C> <C>
UTILITIES 3.5%
AES Corp. (a).................... 12,000 $ 897,000
ALLTEL Corp. .................... 26,900 2,224,294
MCI WorldCom, Inc. (a)........... 20,400 1,082,475
Nextel Communications, Inc.,
Class A (a).................... 7,000 721,875
VoiceStream Wireless Corp. (a)... 8,000 1,138,500
------------
6,064,144
------------
TOTAL LONG-TERM INVESTMENTS 87.9%
(Cost $93,907,344)................... 153,103,867
------------
SHORT-TERM INVESTMENTS 11.4%
REPURCHASE AGREEMENT 9.7%
Bank America ($16,839,000 par
collateralized by U.S. Government
obligations in a pooled cash account,
dated 12/31/99, to be sold on 01/03/00
at $16,842,859) (b).................... 16,839,000
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS 1.7%
Federal Home Loan Bank Discount Note
($2,000,000 par, yielding 5.580%,
03/29/00 maturity)..................... 1,978,840
Federal Home Loan Bank Discount Note
($1,000,000 par, yielding 5.547%,
03/29/00 maturity)..................... 994,074
------------
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATIONS....................... 2,972,914
------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $19,811,914)................... 19,811,914
------------
TOTAL INVESTMENTS 99.3%
(Cost $113,719,258).................. 172,915,781
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.7%...................... 1,220,945
------------
NET ASSETS 100.0%....................... $174,136,726
============
</TABLE>

(a) Non-income producing security as this stock currently does not declare
dividends.
(b) Assets segregated for open futures transactions.
ADR -- American Depositary Receipt
* The common stocks are classified by sectors which represent broad groupings of
related industries.

See Notes to Financial Statements

28
<PAGE> 30

ENTERPRISE PORTFOLIO STATEMENT OF ASSETS AND LIABILITIES

December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Total Investments (Cost $113,719,258)....................... $172,915,781
Cash........................................................ 1,787,610
Receivables:
Dividends................................................. 71,394
Variation Margin on Futures............................... 39,100
Interest.................................................. 1,300
Other....................................................... 50,084
------------
Total Assets.......................................... 174,865,269
------------
LIABILITIES:
Payables:
Investments Purchased..................................... 483,218
Investment Advisory Fee................................... 62,078
Distributor and Affiliates................................ 10,090
Trustees' Deferred Compensation and Retirement Plans........ 131,971
Accrued Expenses............................................ 41,186
------------
Total Liabilities..................................... 728,543
------------
NET ASSETS.................................................. $174,136,726
============
NET ASSETS CONSIST OF:
Capital (Par value of $.01 per share with an unlimited
number of shares authorized).............................. $ 96,272,278
Net Unrealized Appreciation................................. 59,541,665
Accumulated Net Realized Gain............................... 18,081,348
Accumulated Undistributed Net Investment Income............. 241,435
------------
NET ASSETS.................................................. $174,136,726
============
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER
SHARE
(Based on net assets of $174,136,726 and 6,669,872 shares
of beneficial interest issued and outstanding)............ $ 26.11
============
</TABLE>

See Notes to Financial Statements

29
<PAGE> 31

ENTERPRISE PORTFOLIO STATEMENT OF OPERATIONS

For the Year Ended December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends................................................... $ 746,601
Interest.................................................... 383,214
-----------
Total Income............................................ 1,129,815
-----------
EXPENSES:
Investment Advisory Fee..................................... 674,997
Accounting.................................................. 42,885
Trustees' Fees and Related Expenses......................... 36,792
Custody..................................................... 34,539
Legal....................................................... 7,207
Other....................................................... 62,161
-----------
Total Expenses.......................................... 858,581
Investment Advisory Fee Reduction....................... 36,478
Less Credits Earned on Cash Balances.................... 2,834
-----------
Net Expenses............................................ 819,269
-----------
NET INVESTMENT INCOME....................................... $ 310,546
===========
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Gain........................................... $18,174,698
-----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 43,715,944
-----------
End of the Period:
Investments............................................. 59,196,523
Futures................................................. 345,142
-----------
59,541,665
-----------
Net Unrealized Appreciation During the Period............... 15,825,721
-----------
NET REALIZED AND UNREALIZED GAIN............................ $34,000,419
===========
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $34,310,965
===========
</TABLE>

See Notes to Financial Statements

30
<PAGE> 32

ENTERPRISE PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS

For the Years Ended December 31, 1999 and 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Year Ended Year Ended
December 31, 1999 December 31, 1998
- --------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income....................................... $ 310,546 $ 379,529
Net Realized Gain........................................... 18,174,698 9,559,452
Net Unrealized Appreciation During the Period............... 15,825,721 14,397,910
------------ ------------
Change in Net Assets from Operations........................ 34,310,965 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......... 24,642,316 23,118,303
------------ ------------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold................................... 43,053,299 23,512,376
Net Asset Value of Shares Issued Through Dividend
Reinvestment.............................................. 9,668,649 1,218,588
Cost of Shares Repurchased.................................. (26,796,761) (22,994,120)
------------ ------------
NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS.......... 25,925,187 1,736,844
------------ ------------
TOTAL INCREASE IN NET ASSETS................................ 50,567,503 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 $241,435 and $324,609,
respectively)............................................. $174,136,726 $123,569,223
============ ============
</TABLE>

See Notes to Financial Statements

31
<PAGE> 33

ENTERPRISE PORTFOLIO FINANCIAL HIGHLIGHTS

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

<TABLE>
<CAPTION>
Year Ended December 31,
-----------------------------------------------
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................................... .047 .069 .091 .113 .32
Net Realized and Unrealized Gain........................ 5.390 4.441 4.734 3.417 4.22
------- ------- ------- ------- -------
Total from Investment Operations.......................... 5.437 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........................ $26.108 $22.390 $18.106 $16.262 $ 14.69
======= ======= ======= ======= =======
Total Return*............................................. 25.85% 25.00% 30.66% 24.80% 36.98%
Net Assets at End of the Period (In millions)............. $174.1 $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*..... .22% .35% .47% .68% 2.06%
Portfolio Turnover........................................ 116% 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................... .62% .64% .66% .75% .68%
Ratio of Net Investment Income to Average Net Assets...... .20% .31% .41% .53% 1.98%
</TABLE>

See Notes to Financial Statements

32
<PAGE> 34

PERFORMANCE RESULTS FOR THE PERIOD ENDED DECEMBER 31, 1999

VAN KAMPEN LIFE INVESTMENT TRUST

GROWTH AND INCOME PORTFOLIO

<TABLE>
<S> <C>
TOTAL RETURNS
One-year total return based on NAV(1)....................... 12.99%
Life-of-Portfolio average annual total return based on
NAV(1).................................................... 18.48%
Commencement date........................................... 12/23/96
</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.
In addition, the Portfolio is subject to other risks. These risks include, but
are not limited to: market risk--the possibility that the market values of
securities owned by the Portfolio will decline; derivative investment risk--a
derivative investment is one whose value depends on (or is derived from) the
value of an underlying asset, interest rate or index and involves risks
different from investment in the underlying security; and manager risk--
management may not be successful in selecting the best performing securities and
the Portfolio's performance may lag behind that of similar portfolios. 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.

33
<PAGE> 35

PUTTING YOUR PORTFOLIO'S PERFORMANCE IN PERSPECTIVE

GROWTH AND INCOME PORTFOLIO

As you evaluate your progress toward achieving your financial goals, it is
important to track your investment performance at regular intervals. A
comparison of your Portfolio's performance to an applicable benchmark can:
- Illustrate the market environment in which your Portfolio is being
managed.
- Reflect the impact of favorable market trends or difficult market
conditions.
- Help you evaluate how your Portfolio's management team has responded to
opportunities and challenges.
The following graph compares your Portfolio's performance to that of the
Standard & Poor's 500 Index and the Russell 1000 Index* over time. These indexes
are broad-based, statistical composites that do not include any commissions or
fees that would be paid by an investor purchasing the securities they represent.
Such costs would lower the performance of the indices. An investment cannot be
made directly in an index.

GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
Van Kampen Life Investment Trust--Growth and Income Portfolio vs. the
Standard & Poor's 500 Index and the Russell 1000 Index* (December 23, 1996,
through December 31, 1999)
- -----------------------------------
Portfolio's Total Return
1 Year Avg. Annual = 12.99%
Inception Avg. Annual = 18.48%
- -----------------------------------
[GRAPH]

<TABLE>
<CAPTION>
VAN KAMPEN LIT-GROWTH AND
INCOME PORTFOLIO STANDARD & POOR'S 500 INDEX RUSSELL 1000 INDEX*
------------------------- --------------------------- -------------------
<S> <C> <C> <C>
Dec1996 10000.00 10000.00 10000.00
10390.00 10579.00 10592.00
10480.00 10642.00 10633.00
10124.00 10237.00 10155.00
10474.00 10836.00 10704.00
11155.00 11470.00 11391.00
Jun1997 11565.00 12020.00 11864.00
12467.00 12959.00 12837.00
11856.00 12215.00 12231.00
12477.00 12919.00 12901.00
11976.00 12474.00 12483.00
12216.00 13030.00 13024.00
Dec1997 12353.00 13289.00 13288.00
12465.00 13424.00 13388.00
13270.00 14369.00 14342.00
14021.00 15139.00 15065.00
14143.00 15276.00 15221.00
14041.00 14988.00 14892.00
Jun1998 14255.00 15637.00 15441.00
13970.00 15455.00 15256.00
12276.00 13202.00 12975.00
12755.00 14085.00 13850.00
13623.00 15215.00 14944.00
14327.00 16115.00 15867.00
Dec1998 14776.00 17079.00 16878.00
14755.00 17779.00 17481.00
14286.00 17205.00 16927.00
14484.00 17929.00 17577.00
15440.00 18609.00 18311.00
15563.00 18144.00 17916.00
Jun1999 16283.00 19190.00 18828.00
16056.00 18575.00 18246.00
15697.00 18459.00 18083.00
15152.00 17994.00 17586.00
16200.00 19120.00 18754.00
16293.00 19484.00 19245.00
Dec1999 16695.00 20668.00 20411.00
</TABLE>

The above chart reflects the performance of the Portfolio. The Portfolio's
performance assumes reinvestment of all distributions and is shown at net asset
value.

*Since Lipper Analytical Services has reclassified how it categorizes its
indices, we will no longer be using Lipper comparisons because we believe the
new system is less applicable. As a result, the Lipper Growth and Income Fund
Index will not appear in this or future reports. In its place, we have included
the Russell 1000 Index, a second index that we believe represents an additional
point of comparison for the Portfolio. The Russell 1000 Index measures the
performance of 1,000 large-capitalization companies.

34
<PAGE> 36

PORTFOLIO MANAGEMENT REVIEW

GROWTH AND INCOME PORTFOLIO

The following is an interview with representatives of the adviser of the Van
Kampen Life Investment Trust--Growth and Income Portfolio. The representatives
are led by James A. Gilligan, senior portfolio manager, and include Scott A.
Carroll and James O. 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?

A The stock market celebrated a historic year, with the Dow Jones Industrial
Average and the Standard & Poor's 500 Index up 27.2 percent and 21.0
percent, respectively. This performance capped an equally spectacular
decade for the market, with 10-year cumulative returns of 439.3 percent and
430.8 percent, respectively, for the two indices. After a somewhat slow start,
the equity market--led by growth and particularly technology stocks--began its
ascent in earnest at the end of the first quarter. In April, value stocks
briefly took center stage, but investors soon renewed their interest in growth.
The end result was a significant disparity between the average return of growth
and value stocks for the 12-month reporting period, as demonstrated by the 33.2
percent return for the Russell 1000 Growth Index versus the 7.4 percent return
for the Russell 1000 Value Index.

Although interest rates rose sharply throughout the year, the increases
caused only brief stock market corrections in July and October. Even as fears of
additional rate increases by the Federal Reserve Board continued through the end
of the period, the stock market was relatively unaffected; the economic strength
that triggered higher rates failed to cause any appreciable increase in the rate
of inflation.

Q WHAT WAS YOUR STRATEGY FOR MANAGING THE PORTFOLIO IN THIS ENVIRONMENT?

A In seeking value investments, we continued to focus on companies that we
believed were underappreciated by the market and demonstrated a catalyst
for positive change. At the same time, we monitored the Portfolio for
existing holdings that no longer appeared to meet our value criteria. For
example, we decreased or eliminated some of the Portfolio's holdings in the
technology area when we believed they had become overvalued or showed signs of
disappointing earnings. Throughout the year, we reduced the Portfolio's
substantial position in IBM because of concerns that Year 2000 computer problems
would weaken mainframe sales. In October, IBM announced an earnings shortfall,
so we sold the remaining shares.

We pursued a similar strategy with Adobe and Oracle, two top contributors to
the Portfolio's performance. We initially purchased shares of these leading
companies because they were selling at historically low values. After their
shares appreciated significantly, we gradually began reducing these holdings,
although we maintained positions in each company at the end of the reporting
period.

Despite these reductions, technology stocks contributed heavily to the
Portfolio's return and comprised its largest sector at the end of the period.
This heightened profile was primarily due to price appreciation among the
Portfolio's existing technology stocks, although we added new positions in
companies such as Alcatel, Nortel, and Hewlett Packard. Of course, not all the
stocks in the Portfolio performed as favorably, and there is no guarantee that
any of these stocks will perform as well or continue to be owned by the
Portfolio in the future.

Q IN WHAT OTHER AREAS DID YOU SEARCH FOR VALUE?

A We looked to the utilities and consumer nondurables sectors, both of which
trailed the technology sector but experienced favorable returns relative
to other value stocks. Within the utilities sector, we sought to take
advantage of opportunities in the deregulated energy market. For example, we
added to the Portfolio's position in Illinova, an electric utility company,
immediately after it announced a merger with Dynegy, a large energy trading
company. Overall, this sector contributed moderately to the Portfolio's return.

35
<PAGE> 37

Within the consumer nondurables sector, we added a position in Proctor &
Gamble because of its prospects for accelerated revenues and earnings growth.
This stock performed well, as did Colgate-Palmolive, which announced
better-than-expected earnings in the second half of the year. However, the
Portfolio's gains in this sector were overshadowed by its position in Philip
Morris, which continued to suffer from legal difficulties. We also continued to
monitor the progress of bottling companies added to the Portfolio early in the
year. To date, these holdings have not met our expectations for appreciation,
although they have met several of our criteria.

Q WERE THERE ANY OTHER DISAPPOINTMENTS IN THE PORTFOLIO?

A One of the biggest disappointments was the performance of HMO stocks.
Halfway through the Portfolio's fiscal year, we believed that HMO stocks
were due to emerge from a long period of underperformance, as customer
rate increases promised to outweigh projected cost increases. This belief was
confirmed as holdings in this sector performed well going into the summer.
However, the threat of legislation to increase the liability of HMOs and the
announcement of class-action lawsuits late in the period caused us to reevaluate
holdings in Aetna and United HealthCare. As a result, we sold all of Aetna and
more than half of the Portfolio's position in United HealthCare in the second
half of the reporting period.

The financial sector also turned in poor returns because of rising interest
rates and earnings deceleration. Regional banks such as FleetBoston Financial
were weak, as were larger banks such as Bank of America. Not all financial
stocks were disappointing, however. We added to Citigroup, which did well
relative to the sector, and enjoyed positive performance from Marsh & McLennan.

Q TAKING EVERYTHING INTO CONSIDERATION, HOW DID THE PORTFOLIO PERFORM DURING
THE FISCAL YEAR?

A Although the majority of the stock market did not participate in the rally
that lifted the technology sector, our holdings in technology and other
carefully chosen value stocks boosted the Portfolio's return during the
fiscal year. As a result, the Portfolio achieved a total return of 12.99
percent(1) for the 12-month period ended December 31, 1999. By comparison, the
Standard & Poor's 500 Index returned 21.01 percent and the Russell 1000 Index,
which most closely resembles the Portfolio, returned 20.91 percent for the same
period.*

The S&P 500 Index is an unmanaged, broad-based index that reflects the
general performance of the stock market, and the Russell 1000 Index is an
unmanaged index that reflects the general performance of the 1,000 largest U.S.
companies based on total market capitalization. These indices do not reflect any
commissions or fees that would be paid by an investor purchasing the securities
they represent. Such costs would lower the performance of the indices. An
investment cannot be made directly in an index. Of course, past performance is
no guarantee of comparable future results. Please refer to the chart on page 33
for additional Portfolio performance results.

Q WHAT IS YOUR OUTLOOK FOR THE PORTFOLIO AND THE MARKET?

A We expect this challenging market environment to continue in the short
term, as investors wait to see what effect higher rates will have on
corporate profits and stock valuations. Although we foresee a continuation
of the rising interest-rate environment, we look for interest rates to
stabilize eventually, bringing some relief to the market in general and
providing opportunities for bonds and struggling stock sectors such as finance
and utilities to recover. Ultimately, our hope is that value stocks are able to
catch up to the narrow band of growth stocks currently dominating the market. In
this scenario, we believe our bottom-up analysis and disciplined value criteria
will help us uncover fresh investment opportunities for the Growth and Income
Portfolio.

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

* Since Lipper Analytical Services has reclassified how it categorizes its
indices, we will no longer be using Lipper comparisons because we believe the
new system is less applicable. As a result, the Lipper Growth and Income Fund
Index will not appear in this or future reports. In its place, we have
included the Russell 1000 Index, a second index that we believe represents an
additional point of comparison for the Portfolio.

36
<PAGE> 38

GROWTH AND INCOME PORTFOLIO PORTFOLIO OF INVESTMENTS

December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Description Shares Market Value
- ---------------------------------------------------------
<S> <C> <C>
COMMON STOCKS 87.9%
CONSUMER DISTRIBUTION 2.3%
Federated Department Stores, Inc.
(a)............................. 11,220 $ 567,311
Lexmark International Group, Inc.,
Class A (a)..................... 7,100 642,550
-----------
1,209,861
-----------
CONSUMER NON-DURABLES 10.6%
Anheuser-Busch Cos., Inc. ........ 9,700 687,487
Benckiser NV, Class B -- ADR
(Netherlands)................... 5,000 195,000
Colgate-Palmolive Co.............. 15,920 1,034,800
Nabisco Holdings Corp., Class A... 3,800 120,175
Pepsi Bottling Group, Inc. ....... 39,800 659,188
PepsiCo, Inc. .................... 15,800 556,950
Philip Morris Cos., Inc. ......... 6,030 139,821
Procter & Gamble Co. ............. 4,400 482,075
Ralston-Ralston Purina Group...... 26,820 747,607
Seagram Co. Ltd. ................. 9,500 426,906
Unilever NV -- ADR
(Netherlands)................... 4,050 220,472
Whitman Corp...................... 22,480 302,075
-----------
5,572,556
-----------
ENERGY 9.2%
Burlington Resources, Inc. ....... 9,700 320,706
Coastal Corp. .................... 16,870 597,831
El Paso Energy Corp. ............. 24,790 962,162
Exxon Mobil Corp. ................ 14,245 1,147,612
Royal Dutch Petroleum Co. -- ADR
(Netherlands)................... 9,800 592,287
Schlumberger Ltd. ................ 4,500 253,125
Texaco, Inc. ..................... 12,700 689,769
Tosco Corp. ...................... 8,000 217,500
Transocean Sedco Forex, Inc. ..... 871 29,349
-----------
4,810,341
-----------
FINANCE 12.6%
American General Corp. ........... 8,050 610,794
Aon Corp. ........................ 8,500 340,000
AXA Financial, Inc. .............. 17,300 586,037
Bank of America Corp. ............ 6,900 346,294
Bank of Tokyo-Mitsubishi,
Ltd. -- ADR (Japan)............. 37,510 522,796
Citigroup, Inc. .................. 10,500 583,406
Federal National Mortgage
Association..................... 6,400 399,600
FleetBoston Financial Corp. ...... 21,540 749,861
Franklin Resources, Inc. ......... 3,400 109,013
Jefferson-Pilot Corp. ............ 6,800 464,100
Lincoln National Corp. ........... 7,200 288,000
Marsh & McLennan Cos., Inc. ...... 7,900 755,931
MBIA, Inc. ....................... 5,800 306,312
U.S. Bancorp...................... 300 7,144
Wachovia Corp. ................... 400 27,200
Washington Mutual, Inc. .......... 18,706 486,356
-----------
6,582,844
-----------
</TABLE>

<TABLE>
<CAPTION>
Description Shares Market Value
- ---------------------------------------------------------
<S> <C> <C>
HEALTHCARE 9.1%
American Home Products Corp. ..... 21,910 $ 864,076
Aventis SA, Warrants -- ADR
(France)........................ 2,079 10,655
Beckman Coulter, Inc.............. 9,500 483,312
Bristol-Myers Squibb Co. ......... 6,000 385,125
Columbia/HCA Healthcare Corp. .... 26,100 765,056
IMS Health, Inc. ................. 13,900 377,906
Lincare Holdings, Inc. (a)........ 8,800 305,250
Oxford Health Plans, Inc. (a)..... 1,600 20,300
Pharmacia & Upjohn, Inc. ......... 8,600 387,000
United HealthCare Corp. .......... 5,600 297,500
Warner-Lambert Co. ............... 10,800 884,925
-----------
4,781,105
-----------
PRODUCER MANUFACTURING 6.5%
Fluor Corp. ...................... 3,000 137,625
Honeywell International, Inc. .... 8,020 462,654
Ingersoll-Rand Co. ............... 11,700 644,231
Koninklijke Philips Electronics
NV -- ADR (Netherlands)......... 6,390 862,650
Minnesota Mining & Manufacturing
Co. ............................ 13,300 1,301,738
-----------
3,408,898
-----------
RAW MATERIALS/PROCESSING INDUSTRIES 5.9%
Boise Cascade Corp. .............. 7,900 319,950
Imperial Chemical Industries
PLC -- ADR (United Kingdom)..... 9,740 414,559
International Paper Co. .......... 10,300 581,306
Monsanto Co. ..................... 8,900 317,062
Newmont Mining Corp. ............. 9,100 222,950
Pall Corp. ....................... 18,700 403,219
Sherwin-Williams Co. ............. 18,900 396,900
USX-U.S. Steel Group.............. 14,000 462,000
-----------
3,117,946
-----------
TECHNOLOGY 19.6%
Adobe Systems, Inc. .............. 6,900 464,025
Alcatel SA -- ADR (France)........ 13,700 616,500
Altera Corp. (a).................. 4,400 218,075
Boeing Co. ....................... 14,600 606,812
Cadence Design Systems, Inc.
(a)............................. 22,100 530,400
Cisco Systems, Inc. (a)........... 2,500 267,813
Dell Computer Corp. (a)........... 4,300 219,300
Electronic Data Systems Corp. .... 6,900 461,869
EMC Corp. (a)..................... 2,500 273,125
Hewlett-Packard Co. .............. 4,200 478,538
Intel Corp. ...................... 4,500 370,406
J.D. Edwards & Co. (a)............ 7,300 218,088
Legato Systems, Inc. (a).......... 3,200 220,200
Microsoft Corp. (a)............... 1,900 221,825
Motorola, Inc. ................... 8,540 1,257,515
Nippon Telegraph &
Telephone -- ADR (Japan)........ 9,100 783,737
Nortel Networks Corp. ............ 7,000 707,000
Oracle Corp. (a).................. 7,100 795,644
SAP AG -- ADR (Germany)........... 2,700 140,569
</TABLE>

See Notes to Financial Statements

37
<PAGE> 39
GROWTH AND INCOME PORTFOLIO PORTFOLIO OF INVESTMENTS (CONTINUED)

December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Description Shares Market Value
- ---------------------------------------------------------
<S> <C> <C>
TECHNOLOGY (CONTINUED)
Sun Microsystems, Inc. (a)........ 2,700 $ 209,081
SunGard Data Systems, Inc. (a).... 18,100 429,875
Texas Instruments, Inc. .......... 5,700 552,187
Xilinx, Inc. (a).................. 5,080 230,981
-----------
10,273,565
-----------
UTILITIES 12.1%
Consolidated Edison, Inc.......... 8,000 276,000
DQE, Inc. ........................ 14,400 498,600
Edison International.............. 8,000 209,500
GPU, Inc. ........................ 5,400 161,663
GTE Corp. ........................ 13,810 974,468
Illinova Corp. ................... 24,920 865,970
Niagara Mohawk Holdings, Inc.
(a)............................. 58,110 809,908
Northeast Utilities (a)........... 41,000 843,062
NSTAR............................. 19,310 782,055
PECO Energy Co. .................. 9,310 323,523
</TABLE>

<TABLE>
<CAPTION>
Description Shares Market Value
- ---------------------------------------------------------
<S> <C> <C>
UTILITIES (CONTINUED)
SBC Communications, Inc. ......... 6,500 $ 316,875
Sprint Corp....................... 4,390 295,502
-----------
6,357,126
-----------
TOTAL COMMON STOCKS 87.9%................ 46,114,242
-----------
CORPORATE BOND 0.2%
Hewlett-Packard Co., LYON, 144A -- Private
Placement ($125,000 par, yielding
3.125%, 10/14/17 maturity) (c).......... 86,094
-----------
TOTAL LONG-TERM INVESTMENTS 88.1%
(Cost $39,886,460)...................... 46,200,336
-----------
SHORT-TERM INVESTMENTS 10.9%
REPURCHASE AGREEMENT 9.0%
Warburg Dillon Read ($4,754,000 par
collateralized by U.S. Government
obligations in a pooled cash account,
dated 12/31/99, to be sold on 01/03/00
at $4,755,030) (b)...................... 4,754,000
U.S. GOVERNMENT AGENCY OBLIGATION 1.9%
Federal Home Loan Bank Discount Note
($1,000,000 par, yielding 5.574%,
03/29/00 maturity)...................... 986,653
-----------
TOTAL SHORT-TERM INVESTMENTS
(Cost $5,740,653)....................... 5,740,653
-----------
TOTAL INVESTMENTS 99.0%
(Cost $45,627,113)...................... 51,940,989
OTHER ASSETS IN EXCESS OF
LIABILITIES 1.0%....................... 520,904
-----------
NET ASSETS 100.0%........................ $52,461,893
===========
</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 Depositary Receipt

LYON--Liquid yield option note

See Notes to Financial Statements

38
<PAGE> 40

GROWTH AND INCOME PORTFOLIO STATEMENT OF ASSETS AND LIABILITIES

December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Total Investments (Cost $45,627,113)........................ $51,940,989
Cash........................................................ 543,925
Receivables:
Investments Sold.......................................... 48,719
Dividends................................................. 41,109
Variation Margin on Futures............................... 5,100
Interest.................................................. 343
Other....................................................... 3,859
-----------
Total Assets.......................................... 52,584,044
-----------
LIABILITIES:
Payables:
Investments Purchased..................................... 30,717
Investment Advisory Fee................................... 15,226
Distributor and Affiliates................................ 3,016
Accrued Expenses............................................ 47,886
Trustees' Deferred Compensation and Retirement Plans........ 25,306
-----------
Total Liabilities..................................... 122,151
-----------
NET ASSETS.................................................. $52,461,893
===========
NET ASSETS CONSIST OF:
Capital (Par value of $.01 per share with an unlimited
number of shares authorized).............................. $45,852,112
Net Unrealized Appreciation................................. 6,490,114
Accumulated Net Realized Gain............................... 60,038
Accumulated Undistributed Net Investment Income............. 59,629
-----------
NET ASSETS.................................................. $52,461,893
===========
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER
SHARE
(Based on net assets of $52,461,893 and 3,419,972 shares
of beneficial interest issued and outstanding).......... $ 15.34
===========
</TABLE>

See Notes to Financial Statements

39
<PAGE> 41

GROWTH AND INCOME PORTFOLIO STATEMENT OF OPERATIONS

For the Year Ended December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends................................................... $ 639,082
Interest.................................................... 224,749
----------
Total Income............................................ 863,831
----------
EXPENSES:
Investment Advisory Fee..................................... 258,622
Custody..................................................... 35,989
Shareholder Reports......................................... 24,820
Accounting.................................................. 22,684
Trustees' Fees and Related Expenses......................... 18,159
Audit....................................................... 16,790
Legal....................................................... 2,845
Other....................................................... 17,779
----------
Total Expenses.......................................... 397,688
Investment Advisory Fee Reduction....................... 73,947
Less Credits Earned on Cash Balances.................... 64
----------
Net Expenses............................................ 323,677
----------
NET INVESTMENT INCOME....................................... $ 540,154
==========
REALIZED AND UNREALIZED GAIN/LOSS:
Realized Gain/Loss:
Investments............................................... $2,665,293
Futures................................................... 204,372
----------
Net Realized Gain........................................... 2,869,665
----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 4,305,619
----------
End of the Period:
Investments............................................. 6,313,876
Futures................................................. 176,238
----------
6,490,114
----------
Net Unrealized Appreciation During the Period............... 2,184,495
----------
NET REALIZED AND UNREALIZED GAIN............................ $5,054,160
==========
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $5,594,314
==========
</TABLE>

See Notes to Financial Statements

40
<PAGE> 42

GROWTH AND INCOME PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS

For the Years Ended December 31, 1999 and 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Year Ended Year Ended
December 31, 1999 December 31, 1998
- --------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income....................................... $ 540,154 $ 269,134
Net Realized Gain/Loss...................................... 2,869,665 (422,384)
Net Unrealized Appreciation During the Period............... 2,184,495 3,766,083
----------- -----------
Change in Net Assets from Operations........................ 5,594,314 3,612,833
----------- -----------
Distributions from Net Investment Income.................... (745,667) (18,683)
Distributions from Net Realized Gain........................ (2,344,365) -0-
----------- -----------
Total Distributions......................................... (3,090,032) (18,683)
----------- -----------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES......... 2,504,282 3,594,150
----------- -----------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold................................... 21,242,526 18,319,408
Net Asset Value of Shares Issued Through Dividend
Reinvestment.............................................. 3,090,032 18,683
Cost of Shares Repurchased.................................. (6,605,514) (1,415,264)
----------- -----------
NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS.......... 17,727,044 16,922,827
----------- -----------
TOTAL INCREASE IN NET ASSETS................................ 20,231,326 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 $59,629 and $265,142,
respectively)............................................. $52,461,893 $32,230,567
=========== ===========
</TABLE>

See Notes to Financial Statements

41
<PAGE> 43

GROWTH AND INCOME PORTFOLIO FINANCIAL HIGHLIGHTS

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

<TABLE>
<CAPTION>
December 23, 1996
Year Ended December 31 (Commencement of
------------------------------ Investment Operations)
1999(a) 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............................... .190 .120 .072 .011
Net Realized and Unrealized Gain/Loss............... 1.655 2.254 2.309 (.041)
------- ------- ------- -------
Total from Investment Operations...................... 1.845 2.374 2.381 (.030)
------- ------- ------- -------
Less:
Distributions from Net Investment Income............ .264 .016 .065 -0-
Distributions from and in Excess of Net Realized
Gain.............................................. .722 -0- .163 -0-
------- ------- ------- -------
Total Distributions................................... .986 .016 .228 -0-
------- ------- ------- -------
Net Asset Value, End of the Period.................... $15.340 $14.481 $12.123 $ 9.970
======= ======= ======= =======
Total Return*......................................... 12.99% 19.61% 23.90% (.30%)**
Net Assets at End of the Period (In millions)......... $ 52.5 $ 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*............................................. 1.25% 1.27% 1.19% 4.47%
Portfolio Turnover.................................... 96% 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............... .92% 1.09% 1.63% 45.97%
Ratio of Net Investment Income/Loss to Average Net
Assets.............................................. 1.08% .93% .31% (40.74%)
</TABLE>

** Non-Annualized

(a) Based on average month-end shares outstanding.

See Notes to Financial Statements

42
<PAGE> 44

PERFORMANCE RESULTS FOR THE PERIOD ENDED DECEMBER 31, 1999

VAN KAMPEN LIFE INVESTMENT TRUST

MORGAN STANLEY REAL ESTATE SECURITIES PORTFOLIO

<TABLE>
<S> <C>
TOTAL RETURNS
One-year total return based on NAV(1)....................... (3.37%)
Life-of-Portfolio average annual total return based on
NAV(1)...................................................... 10.70%
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.
In addition, the Portfolio is subject to other risks. These risks include, but
are not limited to: market risk--the possibility that the market values of
securities owned by the Portfolio will decline; derivative investment risk--a
derivative investment is one whose value depends on (or is derived from) the
value of an underlying asset, interest rate or index and involves risks
different from investment in the underlying security; and manager risk--
management may not be successful in selecting the best performing securities and
the Portfolio's performance may lag behind that of similar portfolios. 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.

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).

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

The Portfolio being offered is through a variable annuity contract.

43
<PAGE> 45

PUTTING YOUR PORTFOLIO'S PERFORMANCE IN PERSPECTIVE

MORGAN STANLEY REAL ESTATE SECURITIES PORTFOLIO

As you evaluate your progress toward achieving your financial goals, it is
important to track your investment performance at regular intervals. A
comparison of your Portfolio's performance to an applicable benchmark can:
- Illustrate the market environment in which your Portfolio is being
managed.
- Reflect the impact of favorable market trends or difficult market
conditions.
- Help you evaluate how your Portfolio's management team has responded to
opportunities and challenges.
The following graph compares your Portfolio's performance to that of the
Standard & Poor's 500 Index and the NAREIT (National Association of Real Estate
Investment Trusts) Equity Index over time. These indexes are broad-based,
statistical composites that do not include any commissions or fees that would be
paid by an investor purchasing the securities they represent. Such costs would
lower the performance of these indices. An investment cannot be made directly in
an index.

GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
Van Kampen Life Investment Trust--Morgan Stanley Real Estate Securities
Portfolio vs. the Standard & Poor's 500 Index and the NAREIT Equity Index
(July 3, 1995, through December 31, 1999)
- -----------------------------------
Portfolio's Total Return
1 Year Avg. Annual = -3.37%
Inception Avg. Annual = 10.70%
- -----------------------------------
[GRAPH]

<TABLE>
<CAPTION>
VAN KAMPEN LIT-MORGAN STANDARD & POOR'S 500 INDEX NAREIT EQUITY INDEX
STANLEY REAL ESTATE --------------------------- -------------------
SECURITIES PORTFOLIO
---------------------
<S> <C> <C> <C>
Jul 1995 10000.00 10000.00 10000.00
10200.00 10274.00 10000.00
10290.00 10270.00 10120.00
10490.00 10746.00 10241.00
10190.00 10693.00 10417.00
10310.00 11132.00 10194.00
Dec 1995 10835.00 11391.00 10286.00
11006.00 11763.00 10849.00
11168.00 11844.00 11027.00
11117.00 12002.00 11156.00
11135.00 12163.00 11095.00
11489.00 12441.00 11151.00
Jun 1996 11751.00 12539.00 11439.00
11822.00 11965.00 11588.00
12337.00 12190.00 11675.00
12700.00 12924.00 12135.00
13053.00 13261.00 12346.00
13710.00 14234.00 12712.00
Dec 1996 15226.00 14000.00 13291.00
15278.00 14858.00 14672.00
15494.00 14946.00 14839.00
15296.00 14377.00 14809.00
14758.00 15217.00 14778.00
15306.00 16108.00 14373.00
Jun 1997 16217.00 16882.00 14794.00
16800.00 18201.00 15513.00
16607.00 17155.00 15993.00
16194.00 18144.00 15954.00
17718.00 17519.00 17347.00
17997.00 18300.00 16879.00
Dec 1997 18496.00 18663.00 17243.00
17971.00 18853.00 17650.00
18192.00 20181.00 17557.00
18310.00 21261.00 17258.00
18045.00 21454.00 17567.00
17831.00 21050.00 16995.00
Jun 1998 17594.00 21961.00 16876.00
16703.00 21706.00 16761.00
15123.00 18542.00 15673.00
15954.00 19781.00 14194.00
15024.00 21369.00 14997.00
16168.00 22633.00 14719.00
Dec 1998 16346.00 23986.00 14936.00
15919.00 24970.00 14559.00
15705.00 24164.00 14255.00
15706.00 25180.00 13920.00
17276.00 26135.00 13858.00
17647.00 26482.00 15173.00
Jun 1999 17736.00 26952.00 15506.00
17123.00 26088.00 15255.00
16604.00 25925.00 14770.00
16114.00 25272.00 14583.00
15591.00 26852.00 14028.00
15259.00 27364.00 13683.00
Dec 1999 15795.00 29027.00 13460.00
</TABLE>

The above chart reflects the performance of the Portfolio. The Portfolio's
performance assumes reinvestment of all distributions and is shown at net asset
value.

44
<PAGE> 46

PORTFOLIO MANAGEMENT REVIEW

MORGAN STANLEY REAL ESTATE SECURITIES PORTFOLIO ANNUAL REPORT

The following is an interview with the portfolio managers of the Van Kampen Life
Investment Trust--Morgan Stanley Real Estate Securities Portfolio. The managers
are Theodore R. Bigman. and Douglas A. Funke.

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

A The REIT market was overshadowed by persistent downward pressure during
the year, punctuated with intermittent rallies. After a difficult first
quarter, in which we saw a continuation of the negative market conditions
from 1998, the REIT market recovered in May in a value-oriented rally. However,
the third quarter was marked by declining prices and waning interest from
non-dedicated REIT investors. This trend affected much of the domestic equity
market as well, where positive stock returns and strong corporate fundamentals
were overshadowed by interest-rate fears and narrow market leadership during the
same period.
Fortunately, the fourth quarter brought some relief as value investors
renewed their interest in the overlooked REIT market. Buoyed by this interest,
the market rallied nearly 10 percent in the last few weeks of the year. However,
overall performance was negative for the 12-month period, and REITs ended the
year trading at a discount to the underlying value of their assets. As a result,
it was generally cheaper to buy real estate on Wall Street (through the
ownership of securities) than on Main Street (through the direct ownership of
properties).

Q HOW DID YOU POSITION THE PORTFOLIO DURING THIS TIME?

A Throughout the year, we were encouraged by the strength of the U.S.
economy and became more optimistic that this strength would translate into
favorable real estate fundamentals. As a result, we continued to shape the
Portfolio with companies that offered attractive fundamental valuations relative
to their underlying real estate value. Although the Portfolio's sector
weightings changed little from six months ago, we positioned the Portfolio with
a bias toward central business district and Southern California office
properties and began moving away from grocery-anchored shopping centers. We
maintained the Portfolio's overweight position to markets with high barriers to
entry, including West Coast apartments and downtown office buildings.
We continued to upgrade the Portfolio in terms of the quality of properties
held by REITs and the management teams. At the same time, we took advantage of
price weakness to add to some of the Portfolio's existing positions, including
Equity Residential Properties Trust, Arden Realty Trust, and Boston Properties,
Inc.. Due to relative valuations, we sold the Portfolio's position in Apartment
& Investment Management Company and its position in Regency Realty Corp. after a
failed merger.

Q WHAT WAS THE PORTFOLIO'S PERFORMANCE FOR THE REPORTING PERIOD?

A Due in large part to the negative performance of the sector, the
Portfolio's total return was -3.37 percent(1) for the 12-month period
ended December 31, 1999. This performance was comparable to the total
return of the NAREIT (National Association of Real Estate Investment
Trusts) Equity Index of -4.60 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-Stock Index registered a total
return of 21.04 percent in the 12 months ended December 31, 1999. The S&P 500
Index is a broad-based, unmanaged index that reflects the general performance of
the stock market. These indices do not reflect any commissions or fees that
would be paid by an investor purchasing the securities they represent. Such
costs would lower the performance of the indices. An investment cannot be made
directly in an index. Of course, past performance is no guarantee of future
results. Please refer to the chart and footnotes on page 43 for additional
Portfolio performance results.

45
<PAGE> 47

Q WHAT IS YOUR OUTLOOK FOR THE REAL ESTATE MARKET?

A The prices of public real estate securities continue to decline despite
favorable activity in the underlying real estate markets and a
corresponding increase in private real estate values. Generally, real
estate markets remain in equilibrium as strong levels of demand mute any
serious threat of oversupply. High demand was evident at the property level
throughout the past year as public companies reported strong cash flow growth
and, correspondingly, strong growth in asset value per share.
Our analysis indicates that property markets generally remain strong, buoyed
by the continuation of a strong economy. We anticipate a moderating of this
growth, primarily due to a combination of expiring, lower-priced leases being
rolled to market and an eventual slowing of the U.S. economy. Moderate growth
combined with low price-to-earnings ratios imply the ability for modest stock
prices of public real estate companies. In conjunction with high dividend
yields, this scenario may result in the sector providing more typical total
returns than we've seen in the previous year.

46
<PAGE> 48

MORGAN STANLEY REAL ESTATE SECURITIES PORTFOLIO PORTFOLIO OF INVESTMENTS

December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Description Shares Market Value
- --------------------------------------------------------
<S> <C> <C>
COMMON AND PREFERRED STOCKS 95.0%
APARTMENTS 22.4%
Amli Residential Properties
Trust......................... 67,700 $ 1,366,694
Archstone Communities Trust..... 166,646 3,416,243
AvalonBay Communities, Inc. .... 272,800 9,360,450
Equity Residential Properties
Trust......................... 60,954 2,601,974
Essex Property Trust, Inc. ..... 226,800 7,711,200
Pennsylvania Real Estate
Investment.................... 147,800 2,152,337
Smith (Charles E.) Residential
Realty, Inc. ................. 195,900 6,929,962
------------
33,538,860
------------
DEVELOPMENT 4.5%
Atlantic Gulf Communities Corp.
(a)........................... 426,124 21,306
Atlantic Gulf Communities
Corp. --
Preferred Ser B (Convertible
into 96,770 common shares)
(a)........................... 55,647 333,882
Atlantic Gulf Communities
Corp. --
Preferred Shares,
144A -- Private Placement (a)
(b)........................... 79,420 476,520
Atlantic Gulf Communities Corp.
Warrants, 37,098 shares Class
A, B and C, expiring 06/23/04
(a)........................... 111,294 4,452
Atlantic Gulf Communities Corp.
Warrants,
74,352 shares Class A, B and
C,
expiring 06/24/01,
144A -- Private Placement (a)
(b)........................... 223,056 8,922
Brookfield Properties Corp...... 553,642 5,813,241
Merry Land Properties, Inc.
(a)........................... 14,090 73,973
------------
6,732,296
------------
HEALTHCARE FACILITIES 0.1%
Meditrust Co. .................. 32,700 179,850
------------
HOTEL & LODGING 5.1%
Candlewood Hotel Co., Inc.
(a)........................... 80,000 140,000
Host Marriott Corp.............. 201,811 1,664,940
Interstate Hotels Management,
Inc. (a) ..................... 13,575 44,119
Starwood Hotels & Resorts, Class
B............................. 195,911 4,603,908
Wyndham International, Inc.,
Class A....................... 380,163 1,116,729
------------
7,569,696
------------
MANUFACTURED HOME
COMMUNITIES 6.5%
Chateau Communities, Inc. ...... 330,338 8,568,142
Manufactured Home Communities,
Inc. ......................... 48,300 1,174,294
------------
9,742,436
------------
OFFICE/INDUSTRIAL 34.6%
Arden Realty, Inc. ............. 367,500 7,372,969
Beacon Capital Partners Inc.,
144A --
Private Placement (a) (b)
(c)........................... 271,300 4,247,473
BCP Voting Trust, 144A (a) (b)
(c)........................... 12,233 1,178,527
Boston Properties, Inc.......... 37,000 1,151,625
Brandywine Realty Trust......... 308,700 5,054,962
CarrAmerica Realty Corp......... 266,900 5,638,262
</TABLE>

<TABLE>
<CAPTION>
Description Shares Market Value
- --------------------------------------------------------
<S> <C> <C>
OFFICE/INDUSTRIAL (CONTINUED)
EastGroup Properties, Inc. ..... 10,200 $ 188,700
Equity Office Properties
Trust......................... 198,411 4,885,871
Great Lakes REIT, Inc. ......... 404,375 5,812,891
Pacific Gulf Properties,
Inc. ......................... 307,600 6,228,900
Prime Group Realty Trust........ 323,600 4,914,675
ProLogis Trust.................. 15,100 290,675
Trizec Hahn Corp................ 60,900 1,027,688
Wellsford Real Properties, Inc.,
144A -- Private Placement (a)
(b)........................... 447,242 3,801,557
------------
51,794,775
------------
SELF-STORAGE 5.5%
PS Business Parks, Inc. ........ 126,920 2,887,430
Public Storage, Inc. ........... 207,438 4,706,250
Shurgard Storage Centers, Inc.,
Class A....................... 27,800 644,612
------------
8,238,292
------------
SHOPPING CENTERS 8.3%
Acadia Realty Trust............. 28,300 130,888
Burnham Pacific Properties,
Inc. ......................... 650,882 6,102,019
Federal Realty Investment
Trust......................... 189,800 3,570,612
Pan Pacific Retail Properties,
Inc. ......................... 126,100 2,057,006
Philips International Realty
Corp.......................... 5,900 96,981
Ramco-Gershenson Properties
Trust......................... 2,000 25,250
Vornado Realty Trust............ 13,700 445,250
------------
12,428,006
------------
SHOPPING MALLS 8.0%
Rouse Co. ...................... 26,000 552,500
Simon Property Group, Inc. ..... 128,200 2,940,588
Taubman Centers, Inc. .......... 701,742 7,543,726
Urban Shopping Centers, Inc. ... 33,400 905,975
------------
11,942,789
------------
TOTAL COMMON AND PREFERRED STOCKS........ 142,167,000
CONVERTIBLE CORPORATE OBLIGATIONS 1.2%
Brookfield Properties
Corp. -- Installment Receipts
Representing Subordinated Debenture
($2,262,000 par, 6.00% Coupon, 02/14/07
Maturity) (Canada)..................... 1,755,068
------------
TOTAL LONG-TERM INVESTMENTS 96.2%
(Cost $161,485,448).................... 143,922,068
REPURCHASE AGREEMENT 2.3%
Warburg Dillon Read ($3,475,000 par
collateralized by U.S. Government
obligations in a pooled cash account,
dated 12/31/99, to be sold on 01/03/00
at $3,475,753)
(Cost $3,475,000)...................... 3,475,000
------------
TOTAL INVESTMENTS 98.5%
(Cost $164,960,448).................... 147,397,068
OTHER ASSETS IN EXCESS OF
LIABILITIES 1.5%...................... 2,182,201
------------
NET ASSETS 100.0%....................... $149,579,269
============
</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.

See Notes to Financial Statements

47
<PAGE> 49

MORGAN STANLEY REAL ESTATE SECURITIES PORTFOLIO STATEMENT OF ASSETS AND
LIABILITIES

December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Total Investments (Cost $164,960,448)....................... $147,397,068
Cash........................................................ 1,442,104
Receivables:
Dividends................................................. 1,508,371
Portfolio Shares Sold..................................... 49,732
Interest.................................................. 47,802
Unamortized Organizational Costs............................ 849
Other....................................................... 6,719
------------
Total Assets.......................................... 150,452,645
------------
LIABILITIES:
Payables:
Portfolio Shares Repurchased.............................. 626,028
Investment Advisory Fee................................... 118,533
Distributor and Affiliates................................ 26,600
Trustees' Deferred Compensation and Retirement Plans........ 52,228
Accrued Expenses............................................ 49,987
------------
Total Liabilities..................................... 873,376
------------
NET ASSETS.................................................. $149,579,269
============
NET ASSETS CONSIST OF:
Capital (Par value of $.01 per share with an unlimited
number of shares authorized).............................. $169,606,644
Accumulated Undistributed Net Investment Income............. 6,546,576
Accumulated Net Realized Loss............................... (9,008,522)
Net Unrealized Depreciation................................. (17,565,429)
------------
NET ASSETS.................................................. $149,579,269
============
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER
SHARE
(Based on net assets of $149,579,269 and 12,090,590 shares
of beneficial interest issued and outstanding).......... $ 12.37
============
</TABLE>

See Notes to Financial Statements

48
<PAGE> 50

MORGAN STANLEY REAL ESTATE SECURITIES PORTFOLIO STATEMENT OF OPERATIONS

For the Year Ended December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends................................................... $ 8,282,018
Interest.................................................... 234,014
------------
Total Income.......................................... 8,516,032
------------
EXPENSES:
Investment Advisory Fee..................................... 1,761,084
Custody..................................................... 46,692
Trustees' Fees and Related Expenses......................... 25,783
Shareholder Services........................................ 16,996
Legal....................................................... 9,855
Amortization of Organizational Costs........................ 1,365
Other....................................................... 121,312
------------
Total Expenses........................................ 1,983,087
Investment Advisory Fee Reduction..................... 39,541
Less Credits Earned on Cash Balances.................. 7,106
------------
Net Expenses.......................................... 1,936,440
------------
NET INVESTMENT INCOME....................................... $ 6,579,592
============
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Loss........................................... $ (2,236,925)
------------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... (7,525,146)
------------
End of the Period:
Investments........................................... (17,563,380)
Foreign Currency Translation.......................... (2,049)
------------
(17,565,429)
------------
Net Unrealized Depreciation During the Period............... (10,040,283)
------------
NET REALIZED AND UNREALIZED LOSS............................ $(12,277,208)
============
NET DECREASE IN NET ASSETS FROM OPERATIONS.................. $ (5,697,616)
============
</TABLE>

See Notes to Financial Statements

49
<PAGE> 51

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

For the Years Ended December 31, 1999 and 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Year Ended Year Ended
December 31, 1999 December 31, 1998
- --------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income....................................... $ 6,579,592 $ 11,836,164
Net Realized Loss........................................... (2,236,925) (6,375,125)
Net Unrealized Depreciation During the Period............... (10,040,283) (38,598,410)
------------ ------------
Change in Net Assets from Operations........................ (5,697,616) (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......... (17,547,421) (38,044,037)
------------ ------------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold................................... 72,449,932 88,276,432
Net Asset Value of Shares Issued Through Dividend
Reinvestment.............................................. 11,849,796 4,906,666
Cost of Shares Repurchased.................................. (126,003,752) (145,715,375)
------------ ------------
NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS.......... (41,704,024) (52,532,277)
------------ ------------
TOTAL DECREASE IN NET ASSETS................................ (59,251,445) (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 $6,546,576
and $11,817,690, respectively)............................ $149,579,269 $208,830,714
============ ============
</TABLE>

See Notes to Financial Statements

50
<PAGE> 52

MORGAN STANLEY REAL ESTATE SECURITIES PORTFOLIO FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
July 3, 1995
(Commencement
Year Ended December 31, of Investment
------------------------------------- Operations) to
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....................... .676 .781 .464 .217 .20
Net Realized and Unrealized Gain/Loss....... (1.150) (2.597) 2.617 4.117 .6325
------- ------- ------- ------- ------
Total from Investment Operations.............. (.474) (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............ $12.372 $13.759 $15.846 $14.784 $10.74
======= ======= ======= ======= ======
Total Return*................................. (3.37%) (11.62%) 21.47% 40.53% 8.35%**
Net Assets at End of the Period (In
millions)................................... $ 149.6 $ 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*..................................... 3.74% 4.72% 3.42% 5.06% 3.75%
Portfolio Turnover............................ 23% 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....... 1.13% N/A N/A 1.27% 2.90%
Ratio of Net Investment Income to Average Net
Assets...................................... 3.71% N/A N/A 4.89% 3.36%
</TABLE>

** Non-Annualized

N/A = Not Applicable

See Notes to Financial Statements

51
<PAGE> 53

PERFORMANCE RESULTS FOR THE PERIOD ENDED DECEMBER 31, 1999

VAN KAMPEN LIFE INVESTMENT TRUST

STRATEGIC STOCK PORTFOLIO

<TABLE>
<S> <C>
TOTAL RETURNS
One-year total return based on NAV(1)....................... (.47%)
Life-of-Portfolio average annual total return based on
NAV(1).................................................... 8.33%
Commencement date........................................... 11/03/97
</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.
In addition, the Portfolio is subject to other risks. These risks include, but
are not limited to: market risk--the possibility that the market values of
securities owned by the Portfolio will decline; derivative investment risk--a
derivative investment is one whose value depends on (or is derived from) the
value of an underlying asset, interest rate or index and involves risks
different from investment in the underlying security; and manager risk--
management may not be successful in selecting the best performing securities and
the Portfolio's performance may lag behind that of similar portfolios. 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.

52
<PAGE> 54

PUTTING YOUR PORTFOLIO'S PERFORMANCE IN PERSPECTIVE

STRATEGIC STOCK PORTFOLIO

As you evaluate your progress toward achieving your financial goals, it is
important to track your investment portfolio's performance at regular intervals.
A comparison of your Portfolio's performance to an applicable benchmark can:
- Illustrate the market environment in which your investments are being
managed.
- Reflect the impact of favorable market trends or difficult market
conditions.
- Help you evaluate how your Portfolio's management team has responded to
opportunities and challenges.
The following graph compares your Portfolio's performance to that of the Dow
Jones Industrial Average and the Morgan Stanley Capital International (MSCI)
U.S.A. Index over time. These indexes are broad-based, statistical composites
that do not include any commissions or fees that would be paid by an investor
purchasing the securities they represent. Such costs would lower the performance
of these indices. An investment cannot be made directly in an index.

GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
Van Kampen Life Investment Trust--Strategic Stock Portfolio vs. the Dow
Jones Industrial Average and the Morgan Stanley Capital International (MSCI)
U.S.A. Index (November 3, 1997, through December 31, 1999)
- -----------------------------------
Portfolio's Total Return
1 Year Avg. Annual = -.47%
Inception Avg. Annual = 8.33%
- -----------------------------------
[GRAPH]

<TABLE>
<CAPTION>
VAN KAMPEN LIT-STRATEGIC DOW JONES INDUSTRIAL
STOCK PORTFOLIO AVERAGE MSCI U.S.A. INDEX
------------------------ -------------------- -----------------
<S> <C> <C> <C>
Nov 1997 10000.00 10000.00 10000.00
10290.00 10194.00 10472.00
Dec 1997 10250.00 10351.00 10614.00
10320.00 10348.00 10739.00
10940.00 11185.00 11479.00
Mar 1998 11442.00 11565.00 12062.00
11382.00 11911.00 12191.00
11362.00 11697.00 11933.00
Jun 1998 11262.00 11814.00 12433.00
11282.00 11723.00 12297.00
10161.00 9949.00 10572.00
Sep 1998 10641.00 10401.00 11254.00
11372.00 11395.00 12112.00
11893.00 12090.00 12921.00
Dec 1998 11943.00 12228.00 13670.00
11812.00 12464.00 14246.00
11632.00 12395.00 13833.00
Mar 1999 11897.00 13087.00 14394.00
13396.00 14428.00 14899.00
13143.00 14122.00 14538.00
Jun 1999 13315.00 14730.00 15304.00
12920.00 14306.00 14793.00
12718.00 14540.00 14684.00
Sep 1999 12130.00 13938.00 14233.00
12302.00 14468.00 15149.00
12008.00 14667.00 15458.00
Dec 1999 11887.00 15557.00 16521.00
</TABLE>

The above chart reflects the performance of the Portfolio. The Portfolio's
performance assumes reinvestment of all distributions and is shown at net asset
value.

53
<PAGE> 55

PORTFOLIO MANAGEMENT REVIEW

STRATEGIC STOCK PORTFOLIO

The following is an interview with representatives of the adviser of the Van
Kampen Life Investment Trust--Strategic Stock Portfolio. The representatives
include John M. Cunniff, senior portfolio manager, Raj Wagle, portfolio manager,
and Stephen L. Boyd, chief investment officer for equity investments.

Q WHAT MARKET FACTORS AFFECTED THE PORTFOLIO LAST YEAR?

A The Dow Jones Industrial Average--perhaps the most widely recognized stock
market index--began the reporting period near 9200 and crossed several key
milestones in the first half of the year: 10,000 in March and 11,000 in
May. Major fluctuations followed, however, as the index nearly fell back to
10,000 in a difficult third quarter before setting a new record high in
December. For value-oriented portfolios such as the Strategic Stock Portfolio,
most of the year was challenging because investors continued to prefer growth
stocks to value.

Q IN LIGHT OF THESE CONDITIONS, HOW DID YOU SEEK TO MEET THE PORTFOLIO'S
OBJECTIVE?

A As always, 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. There is, of course, no guarantee of this, and the perceived
fair value of these securities may never be realized.

Q HOW DOES THIS STRATEGY WORK OVER TIME?

A Every month, we purchase 20 stocks--10 from the Dow and 10 from the
MSCI-USA Index. As a result, the Portfolio effectively has 12 "baskets" of
stocks (one for each month). We sell each basket after 12 months and
purchase a new basket of 20 stocks to replace it. It's important to understand
that shareholders of the Portfolio don't own just one basket of stocks. Each
shareholder owns 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. These companies' true worth usually become
recognized over time. Our strategy gives each stock at least a 12-month window
to achieve its appreciation potential.

Q WHICH STOCKS MOST HELPED 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 12-month period
included industrial and consumer products

54
<PAGE> 56

manufacturer Minnesota Mining & Manufacturing (3M), clothing retailer Limited,
and auto maker General Motors. These companies benefited from strong economic
growth during the year.

Q WHICH STOCKS HINDERED PERFORMANCE?

A Philip Morris stood out as the largest detractor to performance, as
concerns about ongoing litigation in the tobacco industry continued to
trouble investors and erode its stock price. Because of the stock's high
dividend-yield and low price throughout the year, Philip Morris
represented a substantial portion of the Portfolio and therefore had a large
negative impact on the Portfolio's return.

Q HOW DID THE PORTFOLIO PERFORM IN 1999?

A Because of the generally poor climate for value investments and
significant underperformance of the Portfolio's top holding, the Portfolio
endured a difficult 12 months. The Portfolio achieved a 12-month total
return of -0.47 percent(1) as of December 31, 1999. By comparison, the
Standard & Poor's 500 Index returned 21.04 percent, the Dow Jones Industrial
Average returned 27.26 percent, and the MSCI-USA Index returned 22.38 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 or fees that would be paid by an
investor purchasing the securities they represent. Such costs would lower the
performance of the indices. An investment cannot be made directly in an index.
Please refer to the chart and footnotes on page 52 for additional performance
results.

Q WHAT DO YOU SEE AHEAD FOR THE PORTFOLIO?

A Regardless of market conditions, we continue to follow our disciplined
stock-selection strategy. Because of dramatic market gains in recent
years, stock valuations are at unprecedented levels. A return to
historical norms might represent a good sign for the Portfolio, as
investors tend to purchase stocks with high dividend-yields during times of
market uncertainty. Of course, when this normalization might occur in this
growth-driven market is uncertain. In the meantime, we will continue to stick
with our discipline and hope for better conditions for the Portfolio in 2000.

55
<PAGE> 57

STRATEGIC STOCK PORTFOLIO PORTFOLIO OF INVESTMENTS

December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Description Shares Market Value
- ---------------------------------------------------------
<S> <C> <C>
COMMON STOCKS 97.7%
CONSUMER DISTRIBUTION 8.1%
Limited, Inc. ................... 14,650 $ 634,528
May Department Stores Co. ....... 31,235 1,007,329
Sears Roebuck & Co. ............. 13,660 415,776
SYSCO Corp. ..................... 5,910 233,814
Too, Inc. (a) ................... 2,911 50,215
TRW, Inc. ....................... 1,400 72,713
-----------
2,414,375
-----------
CONSUMER DURABLES 16.4%
Delphi Automotive Systems
Corp. ......................... 9,568 150,696
Eastman Kodak Co. ............... 22,380 1,482,675
General Motors Corp. ............ 18,780 1,365,071
Genuine Parts Co. ............... 15,180 376,654
Goodyear Tire & Rubber Co. ...... 18,230 513,858
Masco Corp. ..................... 12,800 324,800
Maytag Corp. .................... 7,670 368,160
Newell Rubbermaid, Inc. ......... 10,770 312,330
-----------
4,894,244
-----------
CONSUMER NON-DURABLES 13.7%
Anheuser-Busch Cos., Inc. ....... 4,000 283,500
Avon Products, Inc. ............. 9,730 321,090
General Mills, Inc. ............. 26,450 945,587
H. J. Heinz Co. ................. 12,850 511,591
Philip Morris Cos., Inc. ........ 43,030 997,758
Sara Lee Corp. .................. 47,070 1,038,482
-----------
4,098,008
-----------
CONSUMER SERVICES 3.2%
McGraw-Hill, Inc. ............... 14,620 900,958
Service Corp. International ..... 7,020 48,701
-----------
949,659
-----------
ENERGY 9.0%
Chevron Corp. ................... 14,050 1,217,081
Exxon Mobil Corp. ............... 18,370 1,479,933
-----------
2,697,014
-----------
FINANCE 5.3%
J.P. Morgan & Co., Inc. ......... 12,470 1,579,014
-----------
HEALTHCARE 1.8%
Abbott Laboratories, Inc. ....... 15,060 546,866
-----------
</TABLE>

<TABLE>
<CAPTION>
Description Shares Market Value
- ---------------------------------------------------------
<S> <C> <C>
PRODUCER MANUFACTURING 16.9%
Caterpillar, Inc. ............... 27,550 $ 1,296,572
Dana Corp. ...................... 13,430 402,061
Deere & Co. ..................... 6,620 287,143
Emerson Electric Co. ............ 6,710 384,986
Minnesota Mining & Manufacturing
Co. ........................... 18,140 1,775,452
Parker-Hannifin Corp. ........... 8,000 410,500
Textron, Inc. ................... 5,450 417,947
Xerox Corp. ..................... 3,680 83,490
-----------
5,058,151
-----------
RAW MATERIALS/PROCESSING INDUSTRIES 14.6%
Air Products & Chemicals,
Inc. .......................... 13,160 441,682
E. I. Du Pont de Nemours &
Co. ........................... 22,650 1,492,069
International Paper Co. ......... 14,920 842,047
PPG Industries, Inc. ............ 6,280 392,893
Sherwin-Williams Co. ............ 57,390 1,205,190
-----------
4,373,881
-----------
TRANSPORTATION 1.7%
Burlington Northern Santa Fe
Corp. ......................... 20,910 507,067
-----------
UTILITIES 7.0%
Bell Atlantic Corp. ............. 11,770 724,591
BellSouth Corp. ................. 4,760 222,828
SBC Communications, Inc. ........ 23,370 1,139,287
-----------
2,086,706
-----------
TOTAL LONG-TERM INVESTMENTS
(Cost $29,816,792) ..................... 29,204,985
REPURCHASE AGREEMENT 1.1%
Warburg Dillon Read ($329,000 par
collateralized by U.S. Government
obligations in a pooled cash account,
dated 12/31/99, to be sold on 01/03/00
at $329,071) (Cost $329,000) ........... 329,000
-----------
TOTAL INVESTMENTS 98.8%
(Cost $30,145,792) ..................... 29,533,985
OTHER ASSETS IN EXCESS OF
LIABILITIES 1.2% ...................... 358,483
-----------
NET ASSETS 100.0% ....................... $29,892,468
===========
</TABLE>

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

See Notes to Financial Statements

56
<PAGE> 58

STRATEGIC STOCK PORTFOLIO STATEMENT OF ASSETS AND LIABILITIES

December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Total Investments (Cost $30,145,792)........................ $29,533,985
Cash........................................................ 311,973
Receivables:
Dividends................................................. 73,343
Interest.................................................. 88
Unamortized Organizational Costs............................ 22,749
Other....................................................... 1,142
-----------
Total Assets.......................................... 29,943,280
-----------
LIABILITIES:
Payables:
Investment Advisory Fee................................... 7,862
Distributor and Affiliates................................ 2,717
Accrued Expenses............................................ 21,392
Trustees' Deferred Compensation and Retirement Plans........ 18,841
-----------
Total Liabilities..................................... 50,812
-----------
NET ASSETS.................................................. $29,892,468
===========
NET ASSETS CONSIST OF:
Capital (Par value of $.01 per share with an unlimited
number of shares authorized).............................. $29,290,998
Accumulated Net Realized Gain............................... 723,277
Accumulated Undistributed Net Investment Income............. 490,000
Net Unrealized Depreciation................................. (611,807)
-----------
NET ASSETS.................................................. $29,892,468
===========
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER
SHARE
(Based on net assets of $29,892,468 and 2,548,299 shares
of beneficial interest issued and outstanding).......... $ 11.73
===========
</TABLE>

See Notes to Financial Statements

57
<PAGE> 59

STRATEGIC STOCK PORTFOLIO STATEMENT OF OPERATIONS

For the Year Ended December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends................................................... $ 642,826
Interest.................................................... 34,321
-----------
Total Income............................................ 677,147
-----------
EXPENSES:
Investment Advisory Fee..................................... 137,236
Custody..................................................... 29,067
Accounting.................................................. 17,331
Audit....................................................... 16,793
Trustees' Fees and Related Expenses......................... 15,694
Shareholder Services........................................ 15,481
Amortization of Organizational Costs........................ 8,001
Legal....................................................... 1,732
Other....................................................... 7,622
-----------
Total Expenses.......................................... 248,957
Investment Advisory Fee Reduction....................... 69,223
Less Credits Earned on Overnight Cash Balances.......... 122
-----------
Net Expenses............................................ 179,612
-----------
NET INVESTMENT INCOME....................................... $ 497,535
===========
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Gain........................................... $ 757,354
-----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 1,218,605
End of the Period......................................... (611,807)
-----------
Net Unrealized Depreciation During the Period............... (1,830,412)
-----------
NET REALIZED AND UNREALIZED LOSS............................ $(1,073,058)
===========
NET DECREASE IN NET ASSETS FROM OPERATIONS.................. $ (575,523)
===========
</TABLE>

See Notes to Financial Statements

58
<PAGE> 60

STRATEGIC STOCK PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS

For the Years Ended December 31, 1999 and 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Year Ended Year Ended
December 31, 1999 December 31, 1998
- --------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income....................................... $ 497,535 $ 228,843
Net Realized Gain........................................... 757,354 27,796
Net Unrealized Appreciation/Depreciation During the
Period.................................................... (1,830,412) 1,211,770
----------- -----------
Change in Net Assets from Operations........................ (575,523) 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......... (873,733) 1,461,792
----------- -----------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold................................... 14,861,659 19,135,086
Net Asset Value of Shares Issued Through Dividend
Reinvestment.............................................. 295,270 6,375
Cost of Shares Purchased.................................... (5,799,584) (1,720,599)
----------- -----------
NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS.......... 9,357,345 17,420,862
----------- -----------
TOTAL INCREASE IN NET ASSETS................................ 8,483,612 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 $490,000 and $228,802,
respectively)............................................. $29,892,468 $21,408,856
=========== ===========
</TABLE>

See Notes to Financial Statements

59
<PAGE> 61

STRATEGIC STOCK PORTFOLIO FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
November 3, 1997
(Commencement
of Investment
Year Ended Year Ended Operations) to
December 31, 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.......................... .182 .113 .027
Net Realized and Unrealized Gain/Loss.......... (.236) 1.586 .218
------- ------- -------
Total from Investment Operations................. (.054) 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............... $11.730 $11.932 $10.245
======= ======= =======
Total Return*.................................... (.47%) 16.51% 2.45%**
Net Assets at End of the Period (In millions).... $ 29.9 $ 21.4 $ 2.5
Ratio of Expenses to Average Net Assets*......... .65% .65% .61%
Ratio of Net Investment Income to Average Net
Assets*........................................ 1.81% 2.01% 2.67%
Portfolio Turnover............................... 43% 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.......... .91% 1.25% 2.59%
Ratio of Net Investment Income to Average Net
Assets......................................... 1.55% 1.41% .68%
</TABLE>

** Non-Annualized

See Notes to Financial Statements

60
<PAGE> 62

NOTES TO FINANCIAL STATEMENTS

December 31, 1999
- --------------------------------------------------------------------------------

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 Income"), 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: Comstock seeks capital growth
and income through investments in equity securities including common and
preferred stocks and securities convertible into common and preferred stocks;
Emerging Growth seeks capital appreciation by investing principally in common
stocks of emerging growth companies; Enterprise seeks capital appreciation by
investing principally in common stocks of growth companies; 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; 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 high
dividend yielding 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.

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 "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.

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

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

61
<PAGE> 63
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 1999
- --------------------------------------------------------------------------------

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, 1999 along with its expiration dates. The table
also presents the identified cost of investments at December 31, 1999 for
federal income tax 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.................. -- -- --
Expiration dates of capital loss carryforward....... -- -- --
Amount expiring on 12/31/99......................... -- -- --
Identified cost..................................... $1,660,613 $161,852,388 $113,929,111
Gross unrealized appreciation....................... 54,641 99,616,088 61,484,805
Gross unrealized depreciation....................... 145,284 425,133 2,498,135
Net unrealized appreciation/depreciation............ (90,643) 99,190,955 58,986,670
</TABLE>

<TABLE>
<CAPTION>
GROWTH
AND REAL STRATEGIC
INCOME ESTATE STOCK
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Realized capital loss carryforward.................. -- $ 7,806,768 --
Expiration dates of capital loss carryforward....... -- 2006-2007 --
Amount expiring on 12/31/99......................... -- -- --
Identified cost..................................... $45,975,629 $166,270,627 $30,487,276
Gross unrealized appreciation....................... 7,894,730 3,745,270 2,021,719
Gross unrealized depreciation....................... 1,929,370 22,618,829 2,975,010
Net unrealized appreciation/depreciation............ 5,965,360 (18,873,559) (953,291)
</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,
the deferral of losses relating to wash sale transactions and gains recognized
for tax purposes on open future positions at December 31, 1999.

62
<PAGE> 64
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 1999
- --------------------------------------------------------------------------------

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. The
following permanent differences between book and tax basis reporting for the
1999 fiscal year have been identified and appropriately reclassified.

<TABLE>
<CAPTION>
EMERGING REAL
GROWTH ESTATE
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
Accumulated Undistributed Net Investment Income/Loss........ $ 127,437(a) $(901)(b)
Accumulated Net Realized Gain/Loss.......................... -- 901(b)
Capital..................................................... (127,437)(a) --
</TABLE>

(a) A permanent difference related to a net operating loss has been reclassified
from accumulated net investment loss to capital.
(b) For federal Income tax purposes, realized gains and losses on transactions
in foreign currencies are included as ordinary income. These realized gains
and losses are included in net realized gain/loss for financial reporting
purposes and have been reclassified from accumulated net realized gain/loss
to accumulated undistributed net investment income.

G. EXPENSE REDUCTIONS--During the year ended December 31, 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........................... $22 $292 $2,834 $64 $7,106 $122
</TABLE>

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%
First $500 million..................................... .50%
Over $500 million...................................... .45%
</TABLE>

63
<PAGE> 65
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 1999
- --------------------------------------------------------------------------------

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%
Emerging Growth............................................. .85%
Enterprise.................................................. .60%
Growth and Income........................................... .75%
Real Estate................................................. 1.10%
Strategic Stock............................................. .65%
</TABLE>

Other transactions with affiliates during the year ended December 31, 1999
were as follows:

<TABLE>
<CAPTION>
EMERGING
COMSTOCK GROWTH ENTERPRISE
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Accounting.................................................. $22,100 $25,900 $42,900
Shareholder servicing agent's fees.......................... 8,800 15,000 15,100
Legal (Skadden Arps)........................................ 400 8,200 7,200
</TABLE>

<TABLE>
<CAPTION>
GROWTH
AND REAL STRATEGIC
INCOME ESTATE STOCK
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Accounting.................................................. $22,700 $66,600 $17,300
Shareholder servicing agent's fees.......................... 15,000 15,000 14,900
Legal (Skadden Arps)........................................ 2,800 9,900 1,700
</TABLE>

Accounting services are provided by Van Kampen at cost. Van Kampen Investor
Services Inc., 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 December 31, 1999, Van Kampen owned 100,000 shares of Comstock, 10 shares
of Emerging Growth, 54,451 shares of Growth and Income, 10 shares of Real
Estate, and 20,000 shares of Strategic Stock.

64
<PAGE> 66
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 1999
- --------------------------------------------------------------------------------

3. CAPITAL TRANSACTIONS
For the year ended December 31, 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............................................... 70,595 5,233,873 1,916,479
Dividend Reinvestment............................... 838 -0- 445,355
Repurchases......................................... (194) (1,011,402) (1,210,786)
------------ ------------ -----------
Ending Shares....................................... 171,239 5,700,230 6,669,872
============ ============ ===========
Capital at 12/31/99................................. $ 1,668,635 $163,220,121 $96,272,278
============ ============ ===========
</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............................................... 1,413,376 5,498,923 1,206,873
Dividend Reinvestment............................... 209,139 972,091 24,667
Repurchases......................................... (428,188) (9,558,580) (477,478)
----------- ------------ -----------
Ending Shares....................................... 3,419,972 12,090,590 2,548,299
=========== ============ ===========
Capital at 12/31/99................................. $45,852,112 $169,606,644 $29,290,998
=========== ============ ===========
</TABLE>

(1) Portfolio commenced investment operations on April 30, 1999.

At December 31, 1999, with the exception of Van Kampen's ownership of shares
of certain portfolios, five insurance companies or their separate accounts were
record owners of all but a de minimus number of the shares of each Portfolio.
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>

65
<PAGE> 67
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 1999
- --------------------------------------------------------------------------------

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............ $1,730,621 $197,028,186 $151,278,655 $49,273,465 $ 40,292,613 $20,576,214
Sales................ 417,981 82,187,255 154,408,090 37,306,260 88,414,424 11,302,906
</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
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 year ended December 31, 1999, were
as follows:

<TABLE>
<CAPTION>
NUMBER OF CONTRACTS
ENTERPRISE GROWTH AND INCOME
- --------------------------------------------------------------------------------------------
<S> <C> <C>
Outstanding at December 31, 1998............................ 0 5
Futures Opened.............................................. 46 18
Futures Closed.............................................. 0 17
--- ---
Outstanding at December 31, 1999............................ 46 6
=== ===
</TABLE>

66
<PAGE> 68
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 1999
- --------------------------------------------------------------------------------

The futures contracts outstanding at December 31, 1999, and the descriptions
and unrealized appreciation/depreciation are as follows:

<TABLE>
<CAPTION>
UNREALIZED
NUMBER OF APPRECIATION/
CONTRACTS DEPRECIATION
- ----------------------------------------------------------------------------------------
<S> <C> <C>
ENTERPRISE
LONG CONTRACTS
S&P 500 Index Futures -- Mar 00
(Current notional value of $371,050 per contract)...... 46 $345,142
== ========
GROWTH AND INCOME
LONG CONTRACTS
S&P 500 Index Futures -- Mar 00
(Current notional value of $371,050 per contract)...... 6 $176,238
== ========
</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 December 31, 1999.

6. BORROWINGS
In accordance with its investment policies, the Portfolios may borrow from banks
for temporary purposes and is subject to certain other customary restrictions.
Effective November 30, 1999, the Portfolios, in conjunction with certain other
funds of Van Kampen, have entered in to a $650,000,000 committed line of credit
facility with a group of banks which expires on November 28, 2000, but is
renewable with the consent of the participating banks. Each Portfolio is
permitted to utilize the facility in accordance with the restrictions of its
prospectus. In the event the demand for the facility meets or exceeds $650
million on a complex-wide basis, each Portfolio will be limited to its pro-rata
percentage based on the net assets of each participating fund. Interest on
borrowings is charged under the agreement at a rate of 0.50% above the federal
funds rate per annum. An annual commitment fee of 0.09% per annum is charged on
the unused portion of the credit facility, which each Portfolio incurs based on
its pro-rata percentage of quarterly net assets. The Portfolios did not borrow
against the credit facility during the period.

67
<PAGE> 69

REPORT OF INDEPENDENT ACCOUNTANTS

To the Shareholders and Board of Trustees of the Van Kampen Life Investment
Trust--Comstock Portfolio, Emerging Growth Portfolio, Enterprise Portfolio,
Growth and Income Portfolio, Morgan Stanley Real Estate Securities Portfolio and
Strategic Stock Portfolio:

In our opinion, the accompanying statements of assets and liabilities, including
the portfolios of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Comstock Portfolio, Emerging Growth
Portfolio, Enterprise Portfolio, Growth and Income Portfolio, Morgan Stanley
Real Estate Securities Portfolio and Strategic Stock Portfolio (each a Portfolio
of Van Kampen Life Investment Trust, collectively referred to as the
"Portfolios") at December 31, 1999, and the results of each of their operations,
the changes in each of their net assets and the financial highlights for each of
the periods presented, in conformity with accounting principles generally
accepted in the United States. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Portfolios' management; our responsibility is to express
an opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with auditing standards
generally accepted in the United States, which require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits, which included confirmation of securities at December
31, 1999 by correspondence with the custodian and brokers, provide a reasonable
basis for the opinion expressed above.

PRICEWATERHOUSECOOPERS LLP
Chicago, Illinois
February 11, 2000

68
<PAGE> 70

VAN KAMPEN FUNDS

GROWTH
Aggressive Growth*
American Value*
Emerging Growth
Enterprise
Equity Growth
Focus Equity
Growth
Mid Cap Growth
Pace
Small Cap Value
Technology

GROWTH AND INCOME
Comstock
Equity Income
Growth and Income
Harbor
Real Estate Securities
Utility
Value

GLOBAL/INTERNATIONAL
Asian Growth
Emerging Markets
European Equity
Global Equity
Global Equity Allocation
Global Fixed Income*
Global Franchise
Global Government Securities*
Global Managed Assets*
International Magnum
Latin American
Strategic Income
Worldwide High Income

INCOME
Corporate Bond
Government Securities
High Income Corporate Bond
High Yield
High Yield & Total Return
Limited Maturity Government
U.S. Government
U.S. Government Trust for Income

CAPITAL PRESERVATION
Reserve
Tax Free Money

SENIOR LOAN
Prime Rate Income Trust
Senior Floating Rate

TAX FREE
California Insured Tax Free
Florida Insured Tax Free Income
High Yield Municipal**
Insured Tax Free Income
Intermediate Term Municipal Income
Municipal Income
New York Tax Free Income
Pennsylvania Tax Free Income
Tax Free High Income

To find out more about any of these
funds, ask your financial advisor for
a prospectus, which contains more
complete information, including sales
charges, risks, and ongoing expenses.
Please read it carefully before you
invest or send money.

To view a current Van Kampen fund
prospectus or to receive additional
fund information, choose from one of
the following:

- - visit our Web site at
WWW.VANKAMPEN.COM--to view a prospectus, select Download Prospectus

- - call us at 1-800-341-2911 weekdays from 7:00 a.m. to 7:00 p.m. Central time.
Telecommunications Device for the Deaf users, call 1-800-421-2833.

- - e-mail us by visiting
WWW.VANKAMPEN.COM and
selecting Contact Us

* Closed to new investors
** Open to new investors for a limited time

69
<PAGE> 71

VAN KAMPEN LIFE INVESTMENT TRUST

BOARD OF TRUSTEES

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

OFFICERS

RICHARD F. POWERS, III*
President

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

A. THOMAS SMITH III*
Vice President and Secretary

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

STEPHEN L. BOYD*
PETER W. HEGEL*
MICHAEL H. SANTO*
EDWARD C. WOOD, III*
Vice Presidents

INVESTMENT ADVISER

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

The following represents the percentage of 1999 income distributions paid by the
designated fund which qualify for the 70% dividends received deduction for
corporations:
Comstock Portfolio...................................................... 35.90%
Enterprise Portfolio.................................................... 100.00%
Growth and Income Portfolio............................................. 53.73%
Strategic Stock Portfolio............................................... 99.97%
For federal income tax purposes, the following information is furnished with
respect to the distributions paid by the Portfolio during its taxable year ended
December 31, 1999.

<TABLE>
<CAPTION>
20% RATE GAIN
PORTFOLIO DISTRIBUTION
- ----------------------------------------------------
<S> <C>
Enterprise........................... $9,117,357
Growth and Income.................... 1,686,660
Strategic Stock...................... 20,287
</TABLE>

70
<PAGE> 72

RESULTS OF SHAREHOLDER VOTES

A Joint Special Meeting of the Shareholders of the Portfolio was held on
December 15, 1999,
where shareholders voted on the election of trustees and independent public
accountants.
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Emerging Growth Real Strategic
# of Shares Comstock Growth Enterprise and Income Estate Stock
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1) With regard to the election of the following trustees
by shareholders:
J. Miles Branagan
In Favor.......................... 131,857 3,775,180 6,226,235 3,126,036 11,259,746 2,384,516
Withheld.......................... -- 79,096 114,269 10,151 433,769 46,820
Jerry D. Choate
In Favor.......................... 131,857 3,775,363 6,221,332 3,126,036 11,278,498 2,383,627
Withheld.......................... -- 78,912 119,172 10,151 415,017 47,710
Linda Hutton Heagy
In Favor.......................... 131,857 3,775,863 6,226,235 3,126,036 11,277,188 2,384,516
Withheld.......................... -- 78,412 114,269 10,151 416,327 46,820
R. Craig Kennedy
In Favor.......................... 131,857 3,775,863 6,225,717 3,126,036 11,286,222 2,384,516
Withheld.......................... -- 78,412 114,787 10,151 407,292 46,820
Mitchell M. Merin
In Favor.......................... 131,857 3,774,842 6,225,717 3,126,036 11,280,602 2,384,516
Withheld.......................... -- 79,433 114,787 10,151 412,913 46,820
Jack E. Nelson
In Favor.......................... 131,857 3,775,863 6,225,717 3,126,036 11,282,244 2,384,516
Withheld.......................... -- 78,412 114,787 10,151 411,271 46,820
Richard F. Powers, III
In Favor.......................... 131,857 3,774,842 6,224,582 3,121,117 11,279,132 2,384,516
Withheld.......................... -- 79,433 115,921 15,069 414,382 46,820
Philip B. Rooney
In Favor.......................... 131,857 3,775,863 6,226,235 3,123,612 11,285,269 2,369,104
Withheld.......................... -- 78,412 114,269 12,575 408,246 62,232
Fernando Sisto
In Favor.......................... 131,857 3,759,564 6,211,047 3,123,612 11,252,849 2,384,516
Withheld.......................... -- 94,712 129,457 12,575 440,666 46,820
Wayne W. Whalen
In Favor.......................... 131,857 3,775,863 6,225,152 3,121,117 11,281,552 2,384,516
Withheld.......................... -- 78,412 115,352 15,069 411,962 46,820
Suzanne H. Woolsey
In Favor.......................... 131,857 3,775,863 6,221,332 3,120,772 11,275,765 2,384,516
Withheld.......................... -- 78,412 119,172 15,414 417,750 46,820
Paul G. Yovovich
In Favor.......................... 131,857 3,775,456 6,227,436 3,123,129 11,279,375 2,367,029
Withheld.......................... -- 78,819 113,068 13,057 414,140 64,307
2) With regard to the ratification of
PricewaterhouseCoopers LLP to act
as independent public accountants for the Portfolio:
In Favor.......................... 131,857 3,780,401 6,147,254 3,071,900 11,239,458 2,336,097
Against........................... -- 15,308 14,459 14,756 136,985 3,575
Abstaining........................ -- 58,567 178,790 49,531 317,071 91,664
</TABLE>

71
<PAGE> 73

YEAR 2000 UPDATE

As we enter the new century, it's "business as usual" for Van Kampen. Thank you
for the confidence you showed in us during the changeover on January 1, 2000,
and for entrusting us with your investment portfolio. We look forward to
continuing to serve your investment needs.

72
<PAGE> 74

TABLE OF CONTENTS

<TABLE>
<S> <C>
Letter to Policyholders.......................... 1
Economic Snapshot................................ 2
Asset Allocation Portfolio Performance Results... 3
Performance in Perspective..................... 4
Portfolio Management Review.................... 5
Portfolio of Investments....................... 7
Statement of Assets and Liabilities............ 11
Statement of Operations........................ 12
Statement of Changes in Net Assets............. 13
Financial Highlights........................... 14
Domestic Income Portfolio Performance Results.... 15
Performance in Perspective..................... 16
Portfolio Management Review.................... 17
Portfolio of Investments....................... 19
Statement of Assets and Liabilities............ 21
Statement of Operations........................ 22
Statement of Changes in Net Assets............. 23
Financial Highlights........................... 24
Global Equity Portfolio Performance Results...... 25
Performance in Perspective..................... 26
Portfolio Management Review.................... 27
Portfolio of Investments....................... 29
Statement of Assets and Liabilities............ 31
Statement of Operations........................ 32
Statement of Changes in Net Assets............. 33
Financial Highlights........................... 34
Government Portfolio Performance Results......... 35
Performance in Perspective..................... 36
Portfolio Management Review.................... 37
Portfolio of Investments....................... 39
Statement of Assets and Liabilities............ 40
Statement of Operations........................ 41
Statement of Changes in Net Assets............. 42
Financial Highlights........................... 43
Money Market Portfolio Management Review......... 44
Portfolio of Investments....................... 46
Statement of Assets and Liabilities............ 47
Statement of Operations........................ 48
Statement of Changes in Net Assets............. 49
Financial Highlights........................... 50
Notes to Financial Statements.................... 51
Report of Independent Accountants................ 59
</TABLE>

NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE.
<PAGE> 75

LETTER TO POLICYHOLDERS

January 20, 2000

Dear Policyholder,

- INVESTING FOR THE LONG-TERM

- BASING INVESTMENT DECISIONS ON SOUND RESEARCH

- BUILDING A DIVERSIFIED PORTFOLIO

- BELIEVING IN THE VALUE OF PROFESSIONAL INVESTMENT ADVICE

/s/ Richard F. Powers, III /s/ Dennis J. McDonnell
Richard F. Powers, III Dennis J. McDonnell
Chairman President
Van Kampen Asset Management Inc. Van Kampen Asset Management Inc.
</TABLE>

1
<PAGE> 76

ECONOMIC SNAPSHOT

ECONOMIC GROWTH

EMPLOYMENT

INFLATION AND INTEREST RATES

U.S. GROSS DOMESTIC PRODUCT
Seasonally Adjusted Annualized Rates
Third Quarter 1997 through Fourth Quarter 1999
[BAR GRAPH]

Source: Bureau of Economic Analysis

2
<PAGE> 77

PERFORMANCE RESULTS FOR THE PERIOD ENDED DECEMBER 31, 1999

VAN KAMPEN LIFE INVESTMENT TRUST

ASSET ALLOCATION PORTFOLIO

<TABLE>
<S> <C>
TOTAL RETURNS
One-year total return based on NAV(1)....................... 4.94%
Five-year average annual total return based on NAV(1)....... 17.21%
Ten-year average annual total return based on NAV(1)........ 12.29%
Life-of-Portfolio average annual total return based on
NAV(1)...................................................... 11.58%
Commencement date........................................... 06/30/87
</TABLE>

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.

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.
In addition, the Portfolio is subject to other risks. These risks include, but
are not limited to: market risk--the possibility that the market values of
securities owned by the Portfolio will decline; credit risk--an issuer's ability
to make timely payments of interest and principal; derivative investment risk--a
derivative investment is one whose value depends on (or is derived from) the
value of an underlying asset, interest rate or index and involves risks
different from investment in the underlying security; and manager
risk--management may not be successful in selecting the best performing
securities and the Portfolio's performance may lag behind that of similar
portfolios. 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.

3
<PAGE> 78

PUTTING YOUR PORTFOLIO'S PERFORMANCE IN PERSPECTIVE

ASSET ALLOCATION PORTFOLIO

As you evaluate your progress toward achieving your financial goals, it is
important to track your investment performance at regular intervals. A
comparison of your Portfolio's performance to an applicable benchmark can:
- Illustrate the market environment in which your Portfolio is being
managed.
- Reflect the impact of favorable market trends or difficult market
conditions.
- Help you evaluate how your Portfolio's management team has responded to
opportunities and challenges.
The following graph compares your Portfolio's performance to that of the
Standard & Poor's 500 Index and the Lipper Flexible Portfolio Fund Index* over
time. These indices are broad-based, statistical composites that do not include
any commissions or fees that would be paid by an investor purchasing the
securities they represent. Such costs would lower the performance of these
indices. An investment cannot be made directly in an index.

GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
Van Kampen Life Investment Trust--Asset Allocation Portfolio vs. the
Standard & Poor's 500 Index and the Lipper Flexible Portfolio Fund Index*
(December 31, 1989, through December 31, 1999)
[LINE GRAPH]
- ------------------------------
Portfolio's Total Return
1 Year Avg. Annual = 4.94%
5 Year Avg. Annual = 17.21%
10 Year Avg. Annual = 12.29%
- ------------------------------

<TABLE>
<CAPTION>
VAN KAMPEN LIT-ASSET LIPPER FLEXIBLE PORTFOLIO
ALLOCATION PORTFOLIO STANDARD & POOR'S 500 INDEX FUND INDEX*
-------------------- --------------------------- -------------------------
<S> <C> <C> <C>
Dec 1989 10000.00 10000.00 10000.00
9582.00 9312.00 9644.00
9684.00 9391.00 9726.00
9614.00 9698.00 9832.00
9545.00 9437.00 9632.00
10214.00 10305.00 10133.00
10223.00 10305.00 10170.00
10335.00 10251.00 10181.00
9712.00 9284.00 9672.00
9461.00 8895.00 9461.00
9443.00 8836.00 9454.00
9889.00 9365.00 9861.00
Dec 1990 10189.00 9689.00 10093.00
10345.00 10091.00 10458.00
10824.00 10770.00 10955.00
11058.00 11091.00 11165.00
11019.00 11095.00 11208.00
11391.00 11523.00 11535.00
11019.00 11066.00 11175.00
11381.00 11563.00 11537.00
11714.00 11790.00 11841.00
11772.00 11658.00 11870.00
11968.00 11796.00 12060.00
11704.00 11278.00 11800.00
Dec 1991 12945.00 12628.00 12814.00
12699.00 12376.00 12744.00
12892.00 12495.00 12884.00
12581.00 12310.00 12609.00
12562.00 12653.00 12637.00
12755.00 12666.00 12791.00
12573.00 12545.00 12657.00
13034.00 13038.00 13036.00
12830.00 12726.00 12910.00
13109.00 12940.00 13062.00
13270.00 12967.00 13063.00
13689.00 13359.00 13351.00
Dec 1992 13888.00 13588.00 13539.00
14040.00 13684.00 13766.00
14168.00 13828.00 13799.00
14436.00 14180.00 14090.00
14064.00 13820.00 13945.00
14404.00 14133.00 14228.00
14486.00 14247.00 14337.00
14485.00 14171.00 14391.00
14908.00 14659.00 14881.00
15049.00 14614.00 14936.00
14890.00 14897.00 15153.00
14533.00 14705.00 14943.00
Dec 1993 14958.00 14952.00 15263.00
15440.00 15438.00 15679.00
15022.00 14974.00 15336.00
14401.00 14390.00 14721.00
14515.00 14555.00 14779.00
14413.00 14736.00 14831.00
14172.00 14451.00 14520.00
14540.00 14906.00 14865.00
14832.00 15467.00 15286.00
14401.00 15157.00 15020.00
14439.00 15474.00 15129.00
14210.00 14863.00 14765.00
Dec 1994 14411.00 15155.00 14855.00
14815.00 15523.00 14972.00
15306.00 16083.00 15407.00
15623.00 16626.00 15733.00
15930.00 17091.00 16028.00
16652.00 17711.00 16537.00
16941.00 18208.00 16877.00
17374.00 18786.00 17316.00
17518.00 18780.00 17463.00
17995.00 19650.00 17782.00
17879.00 19552.00 17651.00
18558.00 20355.00 18167.00
Dec 1995 18930.00 20829.00 18360.00
19402.00 21509.00 18715.00
19272.00 21858.00 18813.00
19499.00 21946.00 18946.00
19708.00 22241.00 19231.00
19757.00 22749.00 19475.00
19890.00 22929.00 19445.00
19426.00 21880.00 18841.00
19658.00 22291.00 19167.00
20255.00 23632.00 19892.00
20637.00 24249.00 20252.00
21665.00 26029.00 21233.00
Dec 1996 21556.00 25599.00 20949.00
21860.00 27169.00 21553.00
21936.00 27330.00 21523.00
21381.00 26290.00 20873.00
21808.00 27826.00 21420.00
22759.00 29456.00 22330.00
23283.00 30870.00 22988.00
24699.00 33282.00 24281.00
24330.00 31370.00 23518.00
25397.00 33179.00 24514.00
25087.00 32035.00 23999.00
25669.00 33463.00 24433.00
Dec 1997 26259.00 34128.00 24771.00
26567.00 34474.00 24918.00
27449.00 36903.00 26126.00
28331.00 38878.00 27008.00
28468.00 39231.00 27177.00
28241.00 38493.00 26905.00
28513.00 40158.00 27424.00
27923.00 39692.00 27139.00
25970.00 33905.00 24474.00
27355.00 36171.00 25448.00
28422.00 39076.00 26654.00
29535.00 41386.00 27749.00
Dec 1998 30374.00 43861.00 28862.00
31010.00 45660.00 29418.00
29784.00 44186.00 28607.00
30246.00 46043.00 29320.00
30826.00 47790.00 30181.00
30458.00 46597.00 29652.00
30878.00 49283.00 30516.00
30511.00 47704.00 29974.00
30327.00 47406.00 29701.00
30065.00 46212.00 29378.00
30930.00 49102.00 30151.00
31114.00 50038.00 30479.00
Dec 1999 31875.00 53078.00 31689.00
</TABLE>

The above chart reflects the performance of Portfolio. The Portfolio's
performance assumes reinvestment of all distributions and is shown at net asset
value.

* Although Lipper Analytical Services has reclassified how it categorizes its
indices, we are continuing to refer to the Lipper Flexible Portfolio Fund
Index because we believe it remains an applicable point of comparison for the
Fund.

4
<PAGE> 79

PORTFOLIO MANAGEMENT REVIEW

ASSET ALLOCATION PORTFOLIO

The following is an interview with representatives of the adviser of the Van
Kampen Life Investment Trust--Asset Allocation Portfolio. The representatives
consist of John Cunniff, senior portfolio manager; Kelly Gilbert, Tom Copper,
and Raj Wagle, portfolio managers; 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 The Dow Jones Industrial Average--perhaps the country's most widely
recognized stock market index--began the reporting period near 9200 and
crossed several key milestones in the first half of the year: 10,000 in
March and 11,000 in May. Major fluctuations followed, however, as the index
nearly fell back to 10,000 in the difficult third quarter before once again
lifting to a record high late in December. Although many growth
stocks--particularly in the technology area--continued their strong results
during most of the year, it was, in fact, a "narrow" stock market propelled by
the stellar performance of only a handful of stocks.
Conditions were much less favorable for the fixed-income market--yield
spreads widened through the summer as the Fed implemented two rate hikes of 0.25
percent each. The results seemed to soothe investors, and spreads began to
narrow in early September. This narrowing trend continued until November, when
investors grew concerned about the potential effects of year 2000 problems on
corporate bond issuance and liquidity. However, a third Fed hike and a
lower-than-expected new issuance calendar ushered in a relatively smooth ending
to a volatile and difficult year for the fixed-income market.

Q GIVEN THIS ENVIRONMENT, HOW DID YOU MANAGE THE PORTFOLIO?

A The Portfolio seeks to provide high total return consistent with prudent
investment risk through investments in stocks, bonds, and money-market
securities. In seeking to achieve this goal, we first decide how we want
to allocate the Portfolio's assets based on performance expectations for
stocks, bonds, and cash. After determining the asset allocation, we generally
invest the stock portion of the Portfolio in large, well-established companies
with above-average growth rates. We select bonds based on a combination of their
income components and capital-appreciation potential.
During 1999 we reduced the Portfolio's exposure to the stock market and
added to cash and bonds. As of December 31, the asset allocation was
approximately 48 percent stocks, 36 percent bonds, and 16 percent cash. (The
allocation at the start of 1999 was 60 percent stocks, 30 percent bonds, and 10
percent cash.) We made this change based on the results of our asset allocation
model, which, in response to the rise in both the stock market and interest
rates during the reporting period, recommended a relatively conservative asset
allocation. This hurt the Portfolio's performance because the stock market rose
even more and bond prices fell after we shifted to the more cautious mix.

Q WHICH STOCKS SUPPORTED THE PORTFOLIO'S PERFORMANCE?

A As we mentioned, technology stocks as a group were extremely successful
during the reporting period, and most of the Portfolio's best-performing
stocks were in this area. As new technologies such as the Internet
continue to enhance business productivity, companies are spending freely to
upgrade their existing systems.
The Portfolio's top three contributors to performance--Oracle (database
management software), Cisco Systems (maker of essential computer-networking
products), and Microsoft (consumer and business software manufacturer)--were
each well positioned to take advantage of these trends. Keep in mind that not
all stocks in the Portfolio performed as favorably, and there is no guarantee
that any of these stocks will perform as well in the future.

5
<PAGE> 80

Q DID ANY STOCKS HURT THE PORTFOLIO?

A Philip Morris stood out overwhelmingly as the largest detractor to the
Portfolio's performance, as concerns about ongoing litigation in the
tobacco industry continued to trouble investors. The stock's price fell
throughout the reporting period, declining very sharply in October after
an unfavorable judgment by a Florida court. Despite the risk of continued
litigation for Philip Morris, we believe the stock may provide an attractive
total return going forward. As a result, we continue to own the stock in the
Portfolio.

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 bond assets across a variety of
sectors within the corporate bond market. We continued to focus on
investment-grade securities (bonds rated BBB or higher) with maturities of 10 to
30 years.
The duration of the Portfolio is currently 6.06 years. This duration, which
is minimally longer than our benchmark, reflects essentially neutral position on
interest rates. Duration is a measurement used to quantify the sensitivity of a
bond's price to changes in interest rates. Typically, portfolios with longer
durations have performed better when rates are declining, and portfolios with
shorter durations have performed better when interest rates are rising.

Q HOW DID THE PORTFOLIO PERFORM DURING THE LAST 12 MONTHS?

A Because of the stock market's healthy performance and the rise in interest
rates (environments of rising interest rates are typically unfavorable for
bonds), the Portfolio's conservative asset allocation hindered
performance. The Portfolio achieved a 12-month total return of 4.94
percent(1) as of December 31, 1999. By comparison, the Standard & Poor's 500
Index returned 21.04 percent, and the Lipper Flexible Portfolio Fund Index,
which more closely resembles the Portfolio, returned 9.80 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 don't include any commissions
or sales charges that would be paid by an investor purchasing the securities
they represent. Such costs would lower the performance of these indices. An
investment cannot be made directly in an index. Past performance doesn't
guarantee future results. Please refer to the chart and footnotes on page 3 for
additional Portfolio performance results.

Q WHAT DO YOU SEE AHEAD FOR THE PORTFOLIO FOR THE NEXT SIX MONTHS?

A Our outlook depends partly on whether the Federal Reserve increases
interest rates again soon. Although recent rate increases haven't had a
substantially adverse effect on stock prices, another one could be more
consequential. We're also keeping our eye on stock valuations, because the
higher they get, the greater the negative result on the market if investors were
to lose their enthusiasm for growth stocks. Because of these risks, we continue
to believe that maintaining current asset allocation--which includes a
significant percentage of bond investments and cash--is the best approach for
the Portfolio.

6
<PAGE> 81

ASSET ALLOCATION PORTFOLIO PORTFOLIO OF INVESTMENTS

December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Description Shares Market Value
- ---------------------------------------------------------
<S> <C> <C>
COMMON STOCKS 47.2%
CONSUMER DISTRIBUTION 3.1%
Albertson's, Inc. ............. 1,000 $ 32,250
Best Buy Co., Inc. (a)......... 1,900 95,356
Circuit City Stores-Circuit
City Group................... 3,400 153,212
Dayton Hudson Corp. ........... 700 51,406
Federated Department Stores,
Inc. (a)..................... 1,600 80,900
Home Depot, Inc. .............. 1,800 123,413
Kmart Corp. (a)................ 7,200 72,450
Kroger Co. (a)................. 2,300 43,413
Lexmark International Group,
Inc., Class A (a)............ 1,300 117,650
Lowe's Cos., Inc. ............. 200 11,950
May Department Stores Co. ..... 4,250 137,062
Safeway, Inc. (a).............. 900 32,006
Sears Roebuck & Co. ........... 1,500 45,656
TJX Cos., Inc. ................ 3,000 61,313
Tricon Global Restaurants, Inc.
(a).......................... 2,500 96,563
Wal-Mart Stores, Inc. ......... 7,500 518,437
-----------
1,673,037
-----------
CONSUMER DURABLES 1.0%
Delphi Automotive Systems
Corp. ....................... 2,488 39,186
Ford Motor Co. ................ 5,100 272,531
General Motors Corp. .......... 1,650 119,935
Whirlpool Corp. ............... 1,300 84,581
-----------
516,233
-----------
CONSUMER NON-DURABLES 3.2%
Anheuser Busch Cos., Inc. ..... 2,300 163,012
Coca Cola Co. ................. 2,050 119,412
General Mills, Inc. ........... 3,500 125,125
Jones Apparel Group, Inc.
(a).......................... 1,800 48,825
Kimberly-Clark Corp. .......... 3,500 228,375
Loews Corp. ................... 800 48,550
Pepsi Bottling Group, Inc. .... 3,400 56,313
PepsiCo, Inc. ................. 5,500 193,875
Philip Morris Cos., Inc. ...... 8,800 204,050
Procter & Gamble Co. .......... 3,500 383,469
Tommy Hilfiger Corp. (a)....... 2,200 51,288
Tyson Foods, Inc., Class A..... 4,900 79,625
-----------
1,701,919
-----------
CONSUMER SERVICES 1.6%
Brinker International, Inc.
(a).......................... 3,800 91,200
CBS Corp. (a).................. 1,600 102,300
Comcast Corp., Class A......... 1,000 50,563
Cox Communications, Inc.,
Class A (a).................. 1,850 95,275
Darden Restaurants, Inc. ...... 3,500 63,438
Harrah's Entertainment, Inc.
(a).......................... 4,700 124,256
Infinity Broadcasting Corp.,
(a).......................... 800 28,950
New York Times Co., Class A.... 1,500 73,687
Time Warner, Inc. ............. 2,900 210,069
-----------
839,738
-----------
ENERGY 3.2%
Apache Corp. .................. 2,000 73,875
Ashland, Inc. ................. 1,700 55,994
</TABLE>

<TABLE>
<CAPTION>
Description Shares Market Value
- ---------------------------------------------------------
<S> <C> <C>
ENERGY (CONTINUED)
Chevron Corp. ................. 1,300 $ 112,612
Coastal Corp. ................. 4,000 141,750
Columbia Energy Group.......... 600 37,950
El Paso Energy Corp. .......... 1,800 69,862
Enron Corp. ................... 1,300 57,687
Exxon Mobil Corp. ............. 8,572 690,582
McDermott International,
Inc. ........................ 3,400 30,813
Phillips Petroleum Co. ........ 1,650 77,550
Royal Dutch Petroleum Co.-- ADR
(Netherlands)................ 2,400 145,050
Texaco, Inc. .................. 900 48,881
Ultramar Diamond Shamrock
Corp. ....................... 2,200 49,913
USX-- Marathon Group........... 5,600 138,250
-----------
1,730,769
-----------
FINANCE 6.4%
Allstate Corp. ................ 1,500 36,000
Ambac Financial Group, Inc. ... 1,200 62,625
American Express Co. .......... 550 91,437
American General Corp. ........ 1,200 91,050
American International Group,
Inc. ........................ 1,946 210,411
Bank One Corp. ................ 5,434 174,228
BankAmerica Corp. ............. 3,781 189,759
Charles Schwab Corp. .......... 1,500 57,563
Chase Manhattan Corp. ......... 2,500 194,219
CIGNA Corp. ................... 1,000 80,562
Citigroup, Inc. ............... 10,225 568,127
Conseco, Inc. ................. 4,000 71,500
Countrywide Credit Industries,
Inc. ........................ 2,900 73,225
Federal Home Loan Mortgage
Corp. ....................... 1,800 84,712
Federal National Mortgage
Association.................. 4,500 280,969
First Union Corp. ............. 2,400 78,750
FleetBoston Financial Corp. ... 5,331 185,585
Lehman Brothers Holdings,
Inc. ........................ 2,000 169,375
Lincoln National Corp. ........ 1,800 72,000
MBNA Corp. .................... 3,100 84,475
Mellon Financial Corp. ........ 1,500 51,094
Merrill Lynch & Co., Inc. ..... 1,100 91,850
MGIC Investment Corp. ......... 1,400 84,262
Nationwide Financial Services,
Inc., Class A................ 1,000 27,938
Providian Financial Corp. ..... 1,900 173,019
Radian Group, Inc. ............ 1,200 57,300
Washington Mutual, Inc. ....... 2,200 57,200
Wells Fargo & Co. ............. 300 12,131
-----------
3,411,366
-----------
HEALTHCARE 4.4%
Abbott Laboratories, Inc. ..... 2,700 98,044
Aetna, Inc. ................... 1,200 66,975
Amgen, Inc. (a)................ 4,200 252,262
Baxter International, Inc. .... 600 37,688
Bristol-Myers Squibb Co. ...... 5,800 372,287
Johnson & Johnson.............. 3,900 363,187
Merck & Co., Inc. ............. 4,800 321,900
Pacificare Health Systems,
Class A (a).................. 500 26,500
</TABLE>

See Notes to Financial Statements

7
<PAGE> 82
ASSET ALLOCATION PORTFOLIO PORTFOLIO OF INVESTMENTS (CONTINUED)

December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Description Shares Market Value
- ---------------------------------------------------------
<S> <C> <C>
HEALTHCARE (CONTINUED)
Pfizer, Inc. (a)............... 8,400 $ 272,475
Pharmacia & Upjohn, Inc. (a)... 400 18,000
Schering-Plough Corp. (a)...... 1,300 54,844
Tenet Healthcare Corp. (a)..... 1,300 30,550
United HealthCare Corp. ....... 1,700 90,312
Warner-Lambert Co. ............ 3,600 294,975
Wellpoint Health Networks,
Inc., Class A (a)............ 1,000 65,938
-----------
2,365,937
-----------
PRODUCER MANUFACTURING 3.1%
Cummins Engine Co., Inc. ...... 1,700 82,131
General Electric Co. .......... 6,900 1,067,775
Johnson Controls, Inc. ........ 1,600 91,000
Minnesota Mining &
Manufacturing Co. ........... 1,100 107,662
Navistar International Corp.
(a).......................... 2,300 108,962
Parker-Hannifin Corp. ......... 600 30,788
Rockwell International
Corp. ....................... 800 38,300
TRW, Inc. ..................... 1,400 72,713
United Technologies Corp. ..... 690 44,850
-----------
1,644,181
-----------
RAW MATERIALS/PROCESSING
INDUSTRIES 1.6%
Corus Group PLC-- ADR (United
Kingdom)..................... 2,300 59,513
Dow Chemical Co. .............. 1,400 187,075
E.I. Du Pont de Nemours &
Co. ......................... 3,150 207,506
Freeport-McMoRan Copper & Gold,
Inc., Class B (a)............ 1,200 25,350
Mead Corp. .................... 2,700 117,281
Praxair, Inc. ................. 1,600 80,500
Transocean Sedco Forex,
Inc. ........................ 2,100 70,744
Union Carbide Corp. ........... 400 26,700
USX-U.S. Steel Group........... 2,200 72,600
-----------
847,269
-----------
TECHNOLOGY 14.5%
Adaptec, Inc. (a).............. 900 44,888
ADC Telecommunications, Inc.
(a).......................... 1,300 94,331
Alcatel SA-- ADR (France)...... 2,200 99,000
America Online, Inc. (a)....... 6,280 473,747
Apple Computer, Inc. (a)....... 1,000 102,813
BMC Software, Inc. (a)......... 300 23,981
Cisco Systems, Inc. (a)........ 7,600 814,150
Compuware Corp. (a)............ 1,700 63,325
Dell Computer Corp. (a)........ 2,900 147,900
Electronic Data Systems
Corp. ....................... 2,700 180,731
Electronics for Imaging, Inc.
(a).......................... 1,000 58,125
EMC Corp. (a).................. 1,000 109,250
First Data Corp. .............. 400 19,725
Gateway 2000, Inc. (a)......... 1,000 72,063
</TABLE>

<TABLE>
<CAPTION>
Description Shares Market Value
- ---------------------------------------------------------
<S> <C> <C>
TECHNOLOGY (CONTINUED)
General Instrument Corp. (a)... 250 $ 21,250
Hewlett Packard Co. ........... 3,800 432,962
Honeywell International,
Inc. ........................ 1,688 97,348
Intel Corp. ................... 5,900 485,644
International Business
Machines Corp. .............. 4,300 464,400
LSI Logic Corp. (a)............ 700 47,250
Lucent Technologies, Inc. ..... 4,800 359,100
Microsoft Corp. (a)............ 11,700 1,365,975
Motorola, Inc. ................ 2,000 294,500
Network Appliance, Inc. (a).... 600 49,838
Nokia Corp.-- ADR (Finland).... 500 95,000
Nortel Networks Corp. ......... 3,100 313,100
Northrop Grumman Corp. ........ 300 16,219
Oracle Corp. (a)............... 5,400 605,137
Pitney Bowes, Inc. ............ 1,100 53,144
Sanmina Corp. (a).............. 500 49,938
SCI Systems, Inc. (a).......... 1,100 90,406
Seagate Technology, Inc. (a)... 3,000 139,687
Solectron Corp. (a)............ 1,900 180,737
Sun Microsystems, Inc. (a)..... 600 46,463
Tellabs, Inc. (a).............. 2,200 141,212
Xerox Corp. ................... 5,300 120,244
-----------
7,773,583
-----------
TRANSPORTATION 0.4%
AMR Corp. (a).................. 400 26,800
CNF Transportation, Inc. ...... 1,400 48,300
Delta Air Lines, Inc. ......... 900 44,831
Union Pacific Corp. ........... 1,700 74,163
-----------
194,094
-----------
UTILITIES 4.7%
AT & T Corp. .................. 6,001 304,551
BellSouth Corp. ............... 4,000 187,250
DTE Energy Co. ................ 2,700 84,712
GPU, Inc. ..................... 1,200 35,925
GTE Corp. ..................... 6,300 444,544
MCI WorldCom, Inc. (a)......... 7,050 374,091
Nextel Communications, Inc.
(a).......................... 950 97,969
NSTAR.......................... 1,403 56,822
Qwest Communications
International, Inc. (a)...... 5,900 253,700
SBC Communications, Inc. ...... 7,238 352,852
Sprint Corp. .................. 3,300 222,131
Texas Utilities Co. ........... 1,300 46,231
U.S. WEST Communications
Group........................ 900 64,800
-----------
2,525,578
-----------
TOTAL COMMON STOCKS 47.2%................ 25,223,704
-----------
</TABLE>

See Notes to Financial Statements

8
<PAGE> 83
ASSET ALLOCATION PORTFOLIO PORTFOLIO OF INVESTMENTS (CONTINUED)

December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- -----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
CORPORATE DEBT 17.5%
CONSUMER NON-DURABLES 0.4%
$ 250 Kroger Company, Ser B....................................... 7.250% 6/01/09 $ 239,968
-----------
ENERGY 0.9%
500 Enron Corp. ................................................ 6.875 10/15/07 474,680
-----------
FINANCE 3.7%
500 American Re Corp., Ser B.................................... 7.450 12/15/26 475,974
250 Avalonbay Communities, Inc. ................................ 7.500 08/01/09 238,828
250 Countrywide Funding Corp. .................................. 8.250 07/15/02 253,778
250 Finova Cap Corp. ........................................... 7.625 09/21/09 246,273
500 Lehman Brothers, Inc. ...................................... 7.125 07/15/02 497,370
250 Washington Mutual Capital I................................. 8.375 06/01/27 239,479
-----------
1,951,702
-----------
RAW MATERIALS/PROCESSING INDUSTRIES 1.0%
500 Georgia Pacific Corp........................................ 9.950 06/15/02 529,076
-----------
TECHNOLOGY 1.8%
500 Raytheon Co................................................. 6.750 08/15/07 466,034
500 Sun Microsystems, Inc....................................... 7.500 08/15/06 502,683
-----------
968,717
-----------
TRANSPORTATION 2.3%
500 CSX Corp. .................................................. 8.625 05/15/22 522,057
250 Ford Motor Credit Co. ...................................... 6.700 07/16/04 244,836
500 Southwest Air Lines Co. .................................... 7.375 03/01/27 465,005
-----------
1,231,898
-----------
UTILITIES 7.4%
300 360 Communications Co. ..................................... 7.125 03/01/03 299,753
500 Cox Communications, Inc. ................................... 6.875 06/15/05 486,984
250 Edison International........................................ 6.875 09/15/04 245,070
250 El Paso Electric Co. ....................................... 8.250 02/01/03 254,375
500 Houston Lighting & Power Co. ............................... 7.750 03/15/23 472,724
500 MCI WorldCom, Inc. ......................................... 6.950 08/15/28 457,397
250 Niagara Mohawk Power Corp., Ser G........................... 7.750 10/01/08 250,268
500 Southern Energy, Inc., 144A-- Private Placement (b)......... 7.900 07/15/09 484,702
250 Sprint Capital Corp. ....................................... 6.125 11/15/08 227,026
750 Texas Utilities Electric Co. ............................... 8.250 04/01/04 770,352
-----------
3,948,651
-----------
TOTAL CORPORATE DEBT ............................................................ 9,344,692
-----------
UNITED STATES GOVERNMENT OBLIGATIONS 17.3%
500 U.S. Treasury Note.......................................... 5.875 02/15/04 491,875
500 U.S. Treasury Note.......................................... 6.125 08/15/07 487,500
1,000 U.S. Treasury Note.......................................... 6.500 10/15/06 997,500
500 U.S. Treasury Note.......................................... 6.875 05/15/06 508,907
1,000 U.S. Treasury Note.......................................... 7.250 08/15/04 1,032,188
2,000 U.S. Treasury Bond.......................................... 7.125 02/15/23 2,083,126
2,900 U.S. Treasury Bond.......................................... 7.250 05/15/16 3,032,312
500 U.S. Treasury Bond.......................................... 8.750 08/15/20 605,937
-----------
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS........................................ 9,239,345
-----------
TOTAL LONG-TERM INVESTMENTS 82.0%
(Cost $38,424,872)....................................................................... 43,807,741
</TABLE>

See Notes to Financial Statements

9
<PAGE> 84
ASSET ALLOCATION PORTFOLIO PORTFOLIO OF INVESTMENTS (CONTINUED)

December 31, 1999
- --------------------------------------------------------------------------------

Description Market Value
- -----------------------------------------------------------------------------------------------------------
<S> <C>
REPURCHASE AGREEMENT 16.4%
Warburg Dillon Read ($8,795,000 par collateralized by U.S. Government obligations
in a pooled cash account, dated 12/31/99, to be sold on 01/03/00 at $8,796,906)
(Cost $8,795,000)................................................................. $ 8,795,000
-----------
TOTAL INVESTMENTS 98.4%
(Cost $47,219,872)....................................................................... 52,602,741
OTHER ASSETS IN EXCESS OF LIABILITIES 1.6%................................................ 836,787
-----------
NET ASSETS 100.0%......................................................................... $53,439,528
===========
</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

10
<PAGE> 85

ASSET ALLOCATION PORTFOLIO STATEMENT OF ASSETS AND LIABILITIES

December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Total Investments, including a repurchase agreement of
$8,795,000 (Cost $47,219,872)............................. $52,602,741
Cash........................................................ 559,109
Receivables:
Interest.................................................. 360,311
Investments Sold.......................................... 64,090
Dividends................................................. 29,190
Other....................................................... 44,300
-----------
Total Assets.......................................... 53,659,741
-----------
LIABILITIES:
Payables:
Investments Purchased..................................... 24,970
Investment Advisory Fee................................... 21,613
Shareholder Reports....................................... 19,364
Distributor and Affiliates................................ 6,709
Trustees' Deferred Compensation and Retirement Plans........ 123,245
Accrued Expenses............................................ 24,312
-----------
Total Liabilities..................................... 220,213
-----------
NET ASSETS.................................................. $53,439,528
===========
NET ASSETS CONSIST OF:
Capital (Par value of $.01 per share with an unlimited
number of shares authorized).............................. $42,297,099
Net Unrealized Appreciation................................. 5,382,869
Accumulated Net Realized Gain............................... 3,900,528
Accumulated Undistributed Net Investment Income............. 1,859,032
-----------
NET ASSETS.................................................. $53,439,528
===========
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER
SHARE
(Based on net assets of $53,439,528 and 4,399,081 shares
of beneficial interest issued and outstanding)............ $ 12.15
===========
</TABLE>

See Notes to Financial Statements

11
<PAGE> 86

ASSET ALLOCATION PORTFOLIO STATEMENT OF OPERATIONS

For the Year Ended December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest.................................................... $ 1,848,405
Dividends................................................... 413,479
-----------
Total Income............................................ 2,261,884
-----------
EXPENSES:
Investment Advisory Fee..................................... 277,196
Custody..................................................... 40,175
Trustees' Fees and Related Expenses......................... 32,619
Accounting.................................................. 25,190
Shareholder Reports......................................... 19,345
Audit....................................................... 17,128
Legal....................................................... 3,740
Other....................................................... 20,867
-----------
Total Expenses.......................................... 436,260
Investment Advisory Fee Reduction....................... 95,967
Less Credits Earned on Overnight Cash Balances.......... 2,246
-----------
Net Expenses............................................ 338,047
-----------
NET INVESTMENT INCOME....................................... $ 1,923,837
===========
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Gain........................................... $ 3,958,873
-----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 8,728,544
End of the Period:
Investments............................................. 5,382,869
-----------
Net Unrealized Depreciation During the Period............... (3,345,675)
-----------
NET REALIZED AND UNREALIZED GAIN............................ $ 613,198
===========
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $ 2,537,035
===========
</TABLE>

See Notes to Financial Statements

12
<PAGE> 87

ASSET ALLOCATION PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS

For the Years Ended December 31, 1999 and 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Year Ended Year Ended
December 31, 1999 December 31, 1998
- --------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income....................................... $ 1,923,837 $ 1,954,643
Net Realized Gain........................................... 3,958,873 5,930,830
Net Unrealized Appreciation/Depreciation During the
Period.................................................... (3,345,675) 1,114,702
----------- -----------
Change in Net Assets from Operations........................ 2,537,035 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......... (5,371,982) 7,105,608
----------- -----------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold................................... 2,459,470 4,124,365
Net Asset Value of Shares Issued Through Dividend
Reinvestment.............................................. 7,909,018 1,894,567
Cost of Shares Repurchased.................................. (13,018,242) (14,960,988)
----------- -----------
NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS.......... (2,649,754) (8,942,056)
----------- -----------
TOTAL DECREASE IN NET ASSETS................................ (8,021,736) (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 $1,859,032 and $1,905,895,
respectively)............................................. $53,439,528 $61,461,264
=========== ===========
</TABLE>

See Notes to Financial Statements

13
<PAGE> 88

ASSET ALLOCATION PORTFOLIO FINANCIAL HIGHLIGHTS

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

<TABLE>
<CAPTION>
Year Ended December 31,
----------------------------------------------
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............................. .459 .425 .513 .482 .48
Net Realized and Unrealized Gain/Loss............. .115 1.416 1.897 1.083 2.6425
------- ------- ------- ------- ------
Total from Investment Operations.................... .574 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.................. $12.148 $13.384 $11.910 $11.352 $11.64
======= ======= ======= ======= ======
Total Return*....................................... 4.94% 15.67% 21.81% 13.87% 31.36%
Net Assets at End of the Period (In millions)....... $ 53.4 $ 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*........................................... 3.41% 3.17% 3.86% 3.78% 3.85%
Portfolio Turnover.................................. 78% 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............. .77% .72% .71% .81% .74%
Ratio of Net Investment Income to Average Net
Assets............................................ 3.24% 3.05% 3.75% 3.57% 3.71%
</TABLE>

See Notes to Financial Statements

14
<PAGE> 89

PERFORMANCE RESULTS FOR THE PERIOD ENDED DECEMBER 31, 1999

VAN KAMPEN LIFE INVESTMENT TRUST

DOMESTIC INCOME PORTFOLIO

<TABLE>
<S> <C>
TOTAL RETURNS
One-year total return based on NAV(1)....................... (1.55%)
Five-year average annual total return based on NAV(1)....... 8.69%
Ten-year average annual total return based on NAV(1)........ 7.88%
Life-of-Portfolio average annual total return based on
NAV(1).................................................... 7.31%
Commencement date........................................... 11/04/87
YIELD
SEC Yield(2)................................................ 8.10%
</TABLE>

(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 December 31, 1999.

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

The Portfolio being offered is through a variable annuity contract.

15
<PAGE> 90

PUTTING YOUR PORTFOLIO'S PERFORMANCE IN PERSPECTIVE

DOMESTIC INCOME PORTFOLIO

- Illustrate the market environment in which your Portfolio is being
managed.
- Reflect the impact of favorable market trends or difficult market
conditions.
- Help you evaluate how your Portfolio's management team has responded to
opportunities and challenges.

The following graph compares your Portfolio's performance to that of the
Lehman Brothers BBB Corporate Bond Index over time. This index is a broad-based,
statistical composite that does not include any commissions or fees that would
be paid by an investor purchasing the securities it represents. Such costs would
lower the performance of the index. An investment cannot be made directly in an
index.

GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
Van Kampen Life Investment Trust--Domestic Income Portfolio vs. the Lehman
Brothers BBB Corporate Bond Index (December 31, 1989, through December 31,
1999)
- ------------------------------
Portfolio's Total Return
1 Year Avg. Annual = -1.55%
5 Year Avg. Annual = 8.69%
10 Year Avg. Annual = 7.88%
- ------------------------------
[LINE GRAPH]

<TABLE>
<CAPTION>
VAN KAMPEN LIT DOMESTIC INCOME LEHMAN BROTHERS BBB CORPORATE
PORTFOLIO BOND INDEX
------------------------------ -----------------------------
<S> <C> <C>
Dec 1989 10000.00 10000.00
9572.00 9914.00
9306.00 9945.00
9445.00 9962.00
9517.00 9863.00
9691.00 10205.00
9900.00 10359.00
10028.00 10259.00
9703.00 10078.00
9309.00 10081.00
9170.00 10022.00
9239.00 10161.00
Dec 1990 9277.00 10326.00
9397.00 10396.00
9663.00 10669.00
9796.00 10838.00
9916.00 11012.00
10023.00 11117.00
10069.00 11116.00
10223.00 11274.00
10502.00 11520.00
10643.00 11738.00
10855.00 11838.00
10955.00 11960.00
Dec 1991 11246.00 12320.00
11348.00 12228.00
11522.00 12377.00
11682.00 12346.00
11631.00 12406.00
11907.00 12678.00
11995.00 12876.00
12271.00 13215.00
12416.00 13312.00
12547.00 13470.00
12300.00 13205.00
12416.00 13243.00
Dec 1992 12651.00 13479.00
12952.00 13802.00
13268.00 14131.00
13442.00 14196.00
13545.00 14321.00
13672.00 14357.00
14084.00 14727.00
14211.00 14844.00
14575.00 15196.00
14591.00 15205.00
14765.00 15303.00
14623.00 15133.00
Dec 1993 14716.00 15221.00
15042.00 15579.00
14768.00 15209.00
14305.00 14734.00
14077.00 14569.00
14009.00 14499.00
14009.00 14480.00
14232.00 14892.00
14283.00 14922.00
14095.00 14643.00
13992.00 14623.00
13957.00 14608.00
Dec 1994 14079.00 14735.00
14309.00 15066.00
14730.00 15509.00
14922.00 15652.00
15223.00 15923.00
15914.00 16687.00
15980.00 16851.00
15990.00 16802.00
16240.00 17079.00
16431.00 17292.00
16623.00 17451.00
16672.00 17780.00
Dec 1995 17087.00 18082.00
17274.00 18185.00
16962.00 17769.00
16816.00 17632.00
16717.00 17484.00
16759.00 17478.00
16967.00 17741.00
17051.00 17787.00
17051.00 17738.00
17426.00 18127.00
17804.00 18643.00
18260.00 19068.00
Dec 1996 18226.00 18809.00
18342.00 18857.00
18501.00 18962.00
18216.00 18666.00
18490.00 18947.00
18716.00 19177.00
19061.00 19465.00
19860.00 20207.00
19517.00 19905.00
19905.00 20270.00
20042.00 20537.00
20248.00 20646.00
Dec 1997 20398.00 20896.00
20645.00 21092.00
20719.00 21081.00
20749.00 21152.00
20922.00 21293.00
21170.00 21545.00
21270.00 21673.00
21294.00 21642.00
20799.00 21594.00
21284.00 22251.00
21170.00 21816.00
21716.00 22265.00
Dec 1998 21691.00 22326.00
21864.00 22621.00
21294.00 22123.00
21567.00 22351.00
21673.00 22483.00
21301.00 22168.00
21142.00 22060.00
21089.00 21951.00
21009.00 21857.00
21275.00 22095.00
21381.00 22179.00
21461.00 22226.00
Dec 1999 21355.00 22145.00
</TABLE>

The above chart reflects the performance of the Portfolio. The Portfolio's
performance assumes reinvestment of all distributions and is shown at net asset
value.

16
<PAGE> 91

PORTFOLIO MANAGEMENT REVIEW

DOMESTIC INCOME PORTFOLIO

The following is an interview with representatives of the adviser of the Van
Kampen Life Investment Trust--Domestic Income Portfolio. The representatives are
led by Kelly Gilbert, portfolio manager, who is joined by Reid J. Hill,
assistant portfolio manager, and Peter W. Hegel, chief investment officer for
fixed-income investments.

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

A In the first days of 1999, the fixed-income market appeared to be poised
for a recovery from the volatility it had experienced in late 1998. As
investors gained confidence from the declining interest-rate and
low-inflation environment, yield spreads narrowed between Treasuries and
other types of bonds (such as corporate, high-yield, and mortgage-backed
securities).
However, a robust domestic economy in the second quarter of 1999 threatened
to fuel inflationary pressures, which drew the attention and intervention of the
Federal Reserve Board. Yield spreads widened through the summer as the Fed
implemented two rate hikes of 0.25 percent each. These increases seemed to
soothe investors, and spreads began to narrow in early September. This narrowing
trend continued until November, when investors grew concerned about the
potential effects of year 2000 problems on corporate bond issuance and
liquidity. However, a third Fed hike and a lighter-than-expected new issuance
calendar ushered in a relatively smooth ending to a volatile and difficult year
for the fixed-income market.

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

A We decreased the Portfolio's significant exposure to the industrial
sector--which includes health-care, media and telecommunications, and
consumer cyclical securities--in favor of increased weightings in the
finance sector. We accomplished this by eliminating industrial holdings
such as Tenet Healthcare, which was reduced due to concerns about the welfare of
health-care companies. In turn, we added positions like Abbey National and
Washington Mutual, which boosted the Portfolio's exposure to finance. This
strategy was effective, because the finance sector enjoyed relatively strong
performance for much of the period. In addition, the Portfolio's slight
overweighting in cable and media securities, which outperformed during the
period, contributed positively to its return.

Q WHAT WAS THE STRUCTURE OF THE PORTFOLIO AT THE END OF THE REPORTING
PERIOD?

A The Portfolio's credit-quality allocation continued to be weighted in
medium-quality securities, which are defined as A and BBB rated
securities. At the end of the reporting period, approximately 22 percent
of long-term investments were allocated to securities rated A and higher,
and 60 percent of long-term investments were invested in BBB rated securities.
The remaining 18 percent was allocated to securities rated BB and lower. This
allocation benefited the Portfolio during the last six months of the reporting
period, as BB and B rated securities outperformed A rated securities by 126
basis points and 43 basis points, respectively.
We also continued to focus on managing the Portfolio's duration during the
period. Duration, which is expressed in years, is a measurement of a bond's
price sensitivity to changes in interest rates. For most of the period, the
Portfolio's duration was held equivalent to or slightly longer than that of its
benchmark, the Lehman Brothers BBB Corporate Bond Index. Because interest rates
rose during this time, the long duration position was negative to the
Portfolio's return during this time. At the end of the period, the Portfolio's
duration was 6.5 years, which is slightly longer than the benchmark duration of
6.0 years. We'll look for opportunities to reallocate cash into the market in
the coming months, which would achieve a shorter duration.

17
<PAGE> 92

Q HOW DID THE PORTFOLIO PERFORM DURING THE REPORTING PERIOD?

A Although the Portfolio's return was supported by its favorable sector
allocations, this benefit was overshadowed by the slow recovery of the
corporate bond market. For the 12 months ended December 31, 1999, the
Portfolio achieved a total return of -1.55 percent(1). Dividends paid and
reinvested by the Portfolio during the period totaled $0.580 per share. By
comparison, the Lehman Brothers BBB Corporate Bond Index produced a total return
of -0.82 percent for the same period. This broad-based, unmanaged index, which
reflects the general performance of corporate bonds, does not reflect any
commissions or fees that would be paid by an investor purchasing the securities
it represents. Such costs would lower the performance of the index. An
investment cannot be made directly in an index. Of course, past performance is
not a guarantee of comparable future results. Please refer to the chart and
footnotes on page 15 for additional performance results.

Q WHAT IS THE OUTLOOK FOR THE MONTHS AHEAD?

A Generally, the picture for the corporate bond market has improved from six
months ago, and certainly from 12 months ago. We'll look for signs of
continued improvement by monitoring the level of new issuance released in
2000 and investors' reaction to this supply.
As we manage the Portfolio going forward, our focus on fundamental, in-depth
research and assessment of corporate bonds will remain unchanged. We will
continue to look beyond the sector, credit rating, or structure of a bond to
identify those issuers that we believe will remain financially sound and perform
well in a range of market conditions. We'll also search for value in
out-of-favor areas of the market in our quest to maintain the diversification of
the Portfolio and contribute to its performance.

18
<PAGE> 93

DOMESTIC INCOME PORTFOLIO PORTFOLIO OF INVESTMENTS

December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- -----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
CORPORATE DEBT 92.3%
CONSUMER DISTRIBUTION 7.9%
$500 Borden, Inc. ............................................... 7.875% 02/15/23 $ 386,875
500 Gruma SA De CV, 144A -- Private Placement (Mexico) (a)...... 7.625 10/15/07 435,000
500 Nabisco, Inc. .............................................. 7.550 06/15/15 473,700
-----------
1,295,575
-----------
CONSUMER NON-DURABLES 5.5%
500 Bausch & Lomb, Inc.......................................... 7.125 08/01/28 435,845
500 Westpoint Stevens, Inc. .................................... 7.875 06/15/05 457,500
-----------
893,345
-----------
CONSUMER SERVICES 21.5%
500 Cox Communications, Inc. ................................... 6.800 08/01/28 436,388
500 CSC Holdings, Inc........................................... 7.875 12/15/07 495,000
250 Liberty Media Group, 144A -- Private Placement (a).......... 8.500 07/15/29 253,849
500 News America Holdings, Inc. ................................ 10.125 10/15/12 550,436
500 Park Place Entertainment Corp. ............................. 7.950 08/01/03 495,547
500 Royal Caribbean Cruises Ltd. ............................... 7.500 10/15/27 450,701
250 Socgen Real Estate Co. LLC Ser A, 144A -- Private Placement 12/29/49 229,542
(a)......................................................... 7.640
100 Time Warner Entertainment Co. .............................. 8.375 07/15/33 104,225
500 Viacom, Inc. ............................................... 7.625 01/15/16 491,250
-----------
3,506,938
-----------
ENERGY 2.3%
250 PDV America, Inc. .......................................... 7.875 08/01/03 235,570
150 Petroleum Geo-Services ASA.................................. 7.125 03/30/28 131,283
-----------
366,853
-----------
FINANCE 9.6%
250 Abbey National PLC.......................................... 7.350 10/29/49 239,206
500 Avalonbay Communities, Inc. ................................ 7.500 08/01/09 477,656
250 Finova Capital Corp. ....................................... 7.625 09/21/09 246,273
125 Korea Development Bank...................................... 6.500 11/15/02 121,167
250 Nordbanken AB, 144A -- Private Placement (a)................ 7.250 11/12/09 244,869
250 Washington Mutual Capital I................................. 8.375 06/01/27 239,479
-----------
1,568,650
-----------
HEALTHCARE 2.9%
500 Manor Care, Inc. ........................................... 7.500 06/15/06 480,585
-----------
PRODUCER MANUFACTURING 2.8%
500 Idex Corp................................................... 6.875 02/15/08 450,119
-----------
RAW MATERIALS/PROCESSING INDUSTRIES 10.0%
500 Georgia-Pacific Corp. ...................................... 9.950 06/15/02 529,076
500 Owens Illinois, Inc. ....................................... 7.150 05/15/05 465,000
250 Tosco Corp. ................................................ 8.250 05/15/03 254,417
300 Vicap SA De CV (Mexico)..................................... 10.250 05/15/02 290,250
100 Vicap SA De CV (Mexico)..................................... 11.375 05/15/07 92,250
-----------
1,630,993
-----------
RETAIL 1.5%
250 Fred Meyer, Inc. ........................................... 7.375 03/01/05 250,938
-----------
TECHNOLOGY 1.5%
250 Sun Microsystems, Inc. ..................................... 7.500 08/15/06 251,342
-----------
</TABLE>

See Notes to Financial Statements

19
<PAGE> 94
DOMESTIC INCOME PORTFOLIO PORTFOLIO OF INVESTMENTS (CONTINUED)

December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- -----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
TRANSPORTATION 8.5%
$100 Canadian National Railway Co. .............................. 7.625% 05/15/23 $ 97,125
500 CSX Corp. .................................................. 8.625 05/15/22 522,058
500 Delta Air Lines, Inc. ...................................... 9.750 05/15/21 555,547
200 United Air Lines, Inc., Ser 91A2............................ 10.020 03/22/14 216,275
-----------
1,391,005
-----------
UTILITIES 18.3%
250 Edison International........................................ 6.875 09/15/04 245,070
250 El Paso Electric Co., Ser C................................. 8.250 02/01/03 254,375
500 Houston Lighting & Power Co. ............................... 7.750 03/15/23 472,724
250 Israel Electric Corp. Ltd., 144A -- Private Placement (a)... 8.250 10/15/09 249,287
500 MCI Worldcom, Inc. ......................................... 6.950 08/15/28 457,397
250 Niagara Mohawk Power Corp., Ser G........................... 7.750 10/01/08 250,268
350 Public Service Co. of Colorado.............................. 8.750 03/01/22 351,004
500 Southern Energy, Inc., 144A -- Private Placement (a)........ 7.900 07/15/09 484,702
250 Sprint Capital Corp. ....................................... 6.125 11/15/08 227,026
-----------
2,991,853
-----------
TOTAL CORPORATE DEBT 92.3%....................................................... 15,078,196
-----------
GOVERNMENT OBLIGATIONS 3.6%
296 Federal National Mortgage Association Pool (U.S.)........... 10.000 04/01/21 315,295
250 United Mexican States (Mexico).............................. 10.375 02/17/09 266,563
-----------
TOTAL GOVERNMENT OBLIGATIONS...................................................... 581,858
-----------
TOTAL LONG-TERM INVESTMENTS 95.9%
(Cost $16,251,793)....................................................................... 15,660,054
REPURCHASE AGREEMENT 1.7%
Warburg Dillion Read ($283,000 par collateralized by U.S. Government obligations 283,000
in a pooled cash account, dated 12/31/99, to be sold on 01/03/00 at $283,061)
(Cost $283,000)...................................................................
-----------
TOTAL INVESTMENTS 97.6%
(Cost $16,534,793)....................................................................... 15,943,054
OTHER ASSETS IN EXCESS OF LIABILITIES 2.4%................................................ 386,588
-----------
NET ASSETS 100.0%......................................................................... $16,329,642
-----------
</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

20
<PAGE> 95

DOMESTIC INCOME PORTFOLIO STATEMENT OF ASSETS AND LIABILITIES

December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Total Investments (Cost $16,534,793)........................ $15,943,054
Cash........................................................ 165,427
Receivables:
Interest.................................................. 323,930
Portfolio Shares Sold..................................... 868
Other....................................................... 43,360
-----------
Total Assets.......................................... 16,476,639
-----------
LIABILITIES:
Payables:
Distributor and Affiliates................................ 7,502
Investment Advisory Fee................................... 6,615
Portfolio Shares Repurchased.............................. 2,265
Trustees' Deferred Compensation and Retirement Plans........ 118,429
Accrued Expenses............................................ 12,186
-----------
Total Liabilities..................................... 146,997
-----------
NET ASSETS.................................................. $16,329,642
===========
NET ASSETS CONSIST OF:
Capital (Par value of $.01 per share with an unlimited
number of shares authorized).............................. $16,763,020
Accumulated Undistributed Net Investment Income............. 1,244,530
Net Unrealized Depreciation................................. (591,739)
Accumulated Net Realized Loss............................... (1,086,169)
-----------
NET ASSETS.................................................. $16,329,642
===========
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER
SHARE
(Based on net assets of $16,329,642 and 2,030,866 shares
of beneficial interest issued and outstanding)............ $ 8.04
===========
</TABLE>

See Notes to Financial Statements

21
<PAGE> 96

DOMESTIC INCOME PORTFOLIO STATEMENT OF OPERATIONS

For the Year Ended December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest.................................................... $ 1,417,603
Other....................................................... 625
-----------
Total Income............................................ 1,418,228
-----------
EXPENSES:
Investment Advisory Fee..................................... 85,467
Trustees' Fees and Related Expenses......................... 31,029
Shareholder Reports......................................... 18,250
Custody..................................................... 16,278
Accounting.................................................. 16,174
Shareholder Services........................................ 15,980
Audit....................................................... 7,300
Legal....................................................... 2,189
Other....................................................... 1,553
-----------
Total Expenses.......................................... 194,220
Expense Reduction ($85,467 Investment Advisory Fee and
$764 Other)............................................ 86,231
Less Credits Earned on Overnight Cash Balances.......... 2,148
-----------
Net Expenses............................................ 105,841
-----------
NET INVESTMENT INCOME....................................... $ 1,312,387
===========
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Loss........................................... $ (328,221)
-----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 694,170
End of the Period:
Investments............................................. (591,739)
-----------
Net Unrealized Depreciation During the Period............... (1,285,909)
-----------
NET REALIZED AND UNREALIZED LOSS............................ $(1,614,130)
===========
NET DECREASE IN NET ASSETS FROM OPERATIONS.................. $ (301,743)
===========
</TABLE>

See Notes to Financial Statements

22
<PAGE> 97

DOMESTIC INCOME PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS

For the Years Ended December 31, 1999 and 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Year Ended Year Ended
December 31, 1999 December 31, 1998
- --------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income....................................... $ 1,312,387 $ 1,257,306
Net Realized Loss........................................... (328,221) (54,296)
Net Unrealized Depreciation During the Period............... (1,285,909) (155,883)
----------- -----------
Change in Net Assets from Operations........................ (301,743) 1,047,127
Distributions from Net Investment Income.................... (1,259,398) (44,123)
----------- -----------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES......... (1,561,141) 1,003,004
----------- -----------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold................................... 5,830,207 6,157,023
Net Asset Value of Shares Issued Through Dividend
Reinvestment.............................................. 1,259,398 44,123
Cost of Shares Repurchased.................................. (7,120,021) (6,481,744)
----------- -----------
NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS.......... (30,416) (280,598)
----------- -----------
TOTAL INCREASE/DECREASE IN NET ASSETS....................... (1,591,557) 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 $1,244,530 and $1,198,922,
respectively)............................................. $16,329,642 $17,921,199
=========== ===========
</TABLE>

See Notes to Financial Statements

23
<PAGE> 98

DOMESTIC INCOME PORTFOLIO FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
Year Ended December 31,
-------------------------------------------
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................................... .611 .614 .704 .755 .71
Net Realized and Unrealized Gain/Loss................... (.738) (.096) .252 (.212) .8525
------ ------ ------ ------ -------
Total from Investment Operations.......................... (.127) .518 .956 .543 1.5625
Less Distributions from Net Investment Income............. .580 .022 .712 .745 .7025
------ ------ ------ ------ -------
Net Asset Value, End of the Period........................ $8.041 $8.748 $8.252 $8.008 $ 8.21
====== ====== ====== ====== =======
Total Return*............................................. (1.55%) 6.34% 11.90% 6.68% 21.37%
Net Assets at End of the Period (In millions)............. $ 16.3 $ 17.9 $ 17.2 $ 19.8 $ 26.6
Ratio of Expenses to Average Net Assets* (a).............. .61% .60% .60% .60% .60%
Ratio of Net Investment Income to Average Net Assets*..... 7.43% 7.29% 7.74% 7.97% 8.11%
Portfolio Turnover........................................ 74% 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)............... 1.10% 1.09% 1.05% 1.29% .93%
Ratio of Net Investment Income to Average Net Assets...... 6.94% 6.80% 7.29% 7.28% 7.78%
</TABLE>

(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 .01% for the year ended December 31,
1999.

See Notes to Financial Statements

24
<PAGE> 99

PERFORMANCE RESULTS FOR THE PERIOD ENDED DECEMBER 31, 1999

VAN KAMPEN LIFE INVESTMENT TRUST

GLOBAL EQUITY PORTFOLIO

<TABLE>
<S> <C>
TOTAL RETURNS
One-year total return based on NAV(1)....................... 30.06%
Life-of-Portfolio average annual total return based on
NAV(1).................................................... 19.23%
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.
In addition, the Portfolio is subject to other risks. These risks include, but
are not limited to: market risk--the possibility that the market values of
securities owned by the Portfolio will decline; derivative investment risk--a
derivative investment is one whose value depends on (or is derived from) the
value of an underlying asset, interest rate or index and involves risks
different from investment in the underlying security; and manager
risk--management may not be successful in selecting the best performing
securities and the Portfolio's performance may lag behind that of similar
portfolios. 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.

25
<PAGE> 100

PUTTING YOUR PORTFOLIO'S PERFORMANCE IN PERSPECTIVE

GLOBAL EQUITY PORTFOLIO

- Illustrate the market environment in which your Portfolio is being
managed.

- Reflect the impact of favorable market trends or difficult market
conditions.

- Help you evaluate how your Portfolio's management team has responded to
opportunities and challenges.

The following graph compares your Portfolio's performance to that of the
Morgan Stanley Capital International (MSCI) World Index + Dividends over time.
This index is a broad-based, statistical composite that does not include any
commissions or fees that would be paid by an investor purchasing the securities
it represents. Such costs would lower the performance of the index. An
investment cannot be made directly in an index.

GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
Van Kampen Life Investment Trust--Global Equity Portfolio vs. the Morgan
Stanley Capital International (MSCI) World Index + Dividends (July 3, 1995,
through December 31, 1999)
[LINE GRAPH]
- ------------------------------
Portfolio's Total Return
1 Year Avg. Annual = 30.06%
Inception Avg. Annual = 19.23%
- ------------------------------

<TABLE>
<CAPTION>
VAN KAMPEN LIT-GLOBAL EQUITY
PORTFOLIO MSCI WORLD INDEX + DIVIDENDS
---------------------------- ----------------------------
<S> <C> <C>
Jul 1995 10000.00 10000.00
10230.00 10502.00
10140.00 10270.00
10280.00 10571.00
9950.00 10407.00
10160.00 10770.00
Dec 1995 10310.00 11087.00
10470.00 11290.00
10720.00 11360.00
10930.00 11552.00
11420.00 11825.00
11560.00 11838.00
Jun 1996 11520.00 11900.00
11030.00 11481.00
11350.00 11615.00
11610.00 12072.00
11590.00 12159.00
12060.00 12842.00
Dec 1996 12034.00 12639.00
12488.00 12793.00
12674.00 12943.00
12501.00 12689.00
12741.00 13106.00
13492.00 13917.00
Jun 1997 14129.00 14614.00
14724.00 15289.00
13555.00 14268.00
14244.00 15046.00
13419.00 14256.00
13691.00 14511.00
Dec 1997 13941.00 14690.00
14360.00 15101.00
15108.00 16125.00
15914.00 16809.00
16107.00 16976.00
15966.00 16765.00
Jun 1998 16299.00 17166.00
16441.00 17141.00
14233.00 14857.00
14503.00 15123.00
15414.00 16492.00
16274.00 17476.00
Dec 1998 16954.00 18332.00
17339.00 18736.00
17005.00 18240.00
17751.00 19002.00
18665.00 19754.00
17944.00 19035.00
Jun 1999 18922.00 19925.00
18645.00 19868.00
18742.00 19836.00
18472.00 19646.00
19527.00 20670.00
20325.00 21254.00
Dec 1999 22050.00 22977.00
</TABLE>

The above chart reflects the performance of the Portfolio. The Portfolio's
performance assumes reinvestment of all distributions and is shown at net asset
value.

26
<PAGE> 101

PORTFOLIO MANAGEMENT REVIEW

GLOBAL EQUITY PORTFOLIO

The following is an interview with the representatives of the subadviser of the
Van Kampen Life Investment Trust--Global Equity Portfolio. The representatives
are led by portfolio managers Barton M. Biggs and Ann D. Thivierge, Morgan
Stanley Dean Witter Investment Management (the "Investment Subadviser").

Q HOW WOULD YOU CHARACTERIZE THE MARKET CONDITIONS IN WHICH THE PORTFOLIO
OPERATED DURING THE PAST 12 MONTHS?

A Global economic recovery was the story 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 cost-cutting fiscal reforms helped
revive many emerging markets. In particular, Japan and other Asian nations
emerged from devastating depressions and bear markets. In Europe, the
introduction of the euro went smoothly, though it declined against the U.S.
dollar in the first half of the year because of economic weakness, particularly
in Germany. The euro finished 1999 slightly above the dollar as the economy
recovered in the second half of the year.

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

A At the end of the reporting period, the Portfolio had the following
regional allocations relative to 12 months earlier:

<TABLE>
<CAPTION>
DECEMBER 31, 1998 DECEMBER 31, 1999
----------------- -----------------
<S> <C> <C>
North America.............. 50.6% ..... 44.6%
Europe .................... 37.5% ..... 34.2%
Japan ..................... 8.0% ..... 17.4%
Far East .................. 1.8% ..... 1.7%
Other ..................... 2.1% ..... 2.1%
</TABLE>

Throughout the period, the Portfolio remained underweighted in the United
States because stocks appeared overpriced and therefore highly vulnerable in the
event of a market downturn. This strategy hindered performance in the first half
of the year as the U.S. economy continued its strong growth, but it benefited
the Portfolio in the second half when international markets surpassed the U.S.
stock market.
Early in the year, we visited Singapore, Hong Kong, and Japan to talk with
government officials, central bankers, businesses, and other investors. At the
time, these meetings reinforced our belief that Asia had a long way to go in its
recoveries. However, we've seen evidence of their commitment to restructuring,
particularly in Singapore and Japan. In response, we significantly increased the
Portfolio's Singapore exposure. The leading economic indicators were higher and
point to even stronger economic growth. Stock prices were reasonable, and
earnings growth and earnings momentum were the highest in the Portfolio's
investment universe during the reporting period. We gave Singapore high marks
for the government and corporate environment. Additionally, while Singapore
remains dependent on consumer electronics and electronics exports, its economy
is broadening into other areas, which can help lessen the impact of a downturn
in the electronics sector. In Japan, stock prices were not as attractive in the
second half of the year as they were in the first half, but the market had a
great run, and the Portfolio's overweight position contributed positively to
performance.
During the year, Germany lagged the rest of Europe, but we believe recent
tax reform proposals are likely to unleash a massive corporate restructuring in
this largest of European economies, increasing capital efficiencies in Germany
and sending competitive shock waves across the continent. The fact that these
proposals came from the ruling party, Sozialdemokratische Partei Deutschland
(SPD), which 18 months ago proposed marking all corporate assets to market for
immediate tax assessments, illustrates the extent of cultural leadership change.
Similarly, the negative local press resulting from the recent disclosure of
illegal funding (i.e. suitcases of cash) for Germany's Christian Democratic
Union (CDU) party (former Chancellor Kohl's party) should help to expose and
weaken the unhealthy post-World War II based relationships between German
politicians and companies, banks and utilities. This weakening is

27
<PAGE> 102

important to the continuation of the process of privatization and deregulation.
Only through dynamic reform can Europe's economy finally enjoy a long cycle of
strong growth and low inflation. We believe this change is occurring--and at an
accelerating pace.
Finally, the Portfolio is fully invested, meaning that it does not hold a
significant cash position.

Q HOW HAS THE PORTFOLIO PERFORMED DURING THE REPORTING PERIOD?

A The Portfolio performed well in 1999 as a result of our favorable asset
and country allocations in Asia and the United States and our less
defensive strategy. The Portfolio's total return during the 12 months
ended December 31, 1999, was 30.06 percent(1). During the same period, the
Morgan Stanley Capital International World Index returned 26.83 percent. Please
keep in mind that the MSCI World 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 an investor purchasing the securities it
represents. Please refer to the chart and footnotes on page 25 for additional
Portfolio performance results. Past performance does not guarantee future
results.

Q WHAT IS YOUR OUTLOOK FOR THE MONTHS AHEAD?

A We believe that consumer spending in Japan may experience a revival, which
we believe will boost its GDP above consensus expectations next year as
investors continue to gain confidence in Japanese markets. We feel the
ongoing recovery in the rest of Asia should aid Japan as well.
Our outlook for European equities is positive with the markets supported by
strong earnings growth, upward earnings estimates, and little threat in the
short-term from either interest rates or bond yields. For the third quarter,
earnings growth was strong and positive surprises outnumbered negative surprises
by 2:1, and we believe these trends may continue. Liquidity remains powerful
with strong individual investor buying. Importantly, we expect the euro to
strengthen from current levels, which may provide a boost for U.S. dollar-based
investors. However, we believe valuations are rich and the European markets are
highly correlated to the U.S. markets.
We are cautious about the U.S. equity market due to expensive valuations and
a more compelling case for fundamental change in the international arena. As
long as the U.S. market remains relatively stable, we believe that many European
and Asian markets can perform well given their rising economic growth, continued
restructuring, and improving earnings. While we are encouraged by the present
lack of meaningful inflation in the U.S., we continue to watch the Federal
Reserve Board, hoping that policy makers tap the brakes cautiously without
causing global reverberations. We expect the international markets to outperform
the United States not for months, but for years.

28
<PAGE> 103

GLOBAL EQUITY PORTFOLIO PORTFOLIO OF INVESTMENTS

December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Market
Description Shares Value
- --------------------------------------------------------
<S> <C> <C>
COMMON STOCKS 99.3%
AUSTRALIA 1.9%
Orica Ltd.......................... 2,089 $ 11,260
Pacific Dunlop Ltd................. 8,200 11,606
Rio Tinto Ltd...................... 2,688 57,742
----------
80,608
----------
AUSTRIA 0.5%
OMV, AG............................ 200 19,442
----------
CANADA 3.3%
Barrick Gold Corp.................. 100 1,784
Enbridge, Inc...................... 3,000 59,543
Nortel Networks Corp............... 800 80,831
Placer Dome, Inc................... 100 1,067
----------
143,225
----------
DENMARK 0.3%
Novo Nordisk A/S, Ser B............ 100 13,263
----------
FINLAND 5.0%
Nokia (Ab) Oy (a).................. 1,200 217,587
----------
FRANCE 3.9%
Alcatel Alsthom (Cie Gen El)....... 165 37,896
Axa-UAP............................ 230 32,066
Compagnie de Saint Gobain.......... 148 27,835
LVMH (Moet Hennessy Louis
Vuitton)......................... 55 24,638
Total, Class B..................... 344 45,915
----------
168,350
----------
GERMANY 5.0%
Allianz, AG........................ 102 34,267
BASF, AG........................... 250 12,844
Bayer, AG.......................... 200 9,469
DaimlerChrysler, AG................ 251 19,520
Degussa Huels, AG (a).............. 50 2,100
Deutsche Bank, AG.................. 400 33,786
Deutsche Telekom, AG............... 606 43,159
Linde, AG.......................... 500 27,349
Siemens, AG........................ 200 25,446
VEBA, AG........................... 200 9,721
----------
217,661
----------
ITALY 2.0%
Enstituto Nazionale delle
Assicurazioni
(INA)............................ 12,000 31,792
Ente Nazionale Idrocarburi, SpA.... 2,000 11,000
Fiat SpA........................... 400 11,423
Telecom Italia..................... 2,500 27,929
Telecom Italia SpA (a)............. 2 28
Unione Immobiliare................. 12,000 5,561
----------
87,733
----------
JAPAN 17.3%
Acom Co., Ltd...................... 200 19,595
Bank of Tokyo...................... 600 8,362
Daiwa Securities................... 1,000 15,650
East Japan Railway................. 1 5,393
Hitachi............................ 1,000 16,052
Honda Motor Co..................... 1,000 37,193
</TABLE>

<TABLE>
<CAPTION>
Market
Description Shares Value
- --------------------------------------------------------
<S> <C> <C>
JAPAN (CONTINUED)
Japan Air Lines Co. (a)............ 1,000 $ 2,966
Japan Energy Corp.................. 3,000 2,731
Japan Tobacco, Inc................. 2 15,308
Kao Corp........................... 1,000 28,531
Kawasaki Heavy Industries.......... 1,000 1,331
Kawasaki Steel Corp................ 2,000 3,582
Komatsu............................ 1,000 4,600
Kyocera Corp....................... 100 25,937
Matsushita Electric Industries..... 1,000 27,699
Mitsubishi Electric Corp........... 2,000 12,920
Mitsubishi Estate.................. 1,000 9,758
Nagoya Railroad Co................. 3,000 8,779
NEC Corp........................... 1,000 23,833
Nippon Steel Corp.................. 1,000 2,339
Nippon Telegraph & Telephone
Corp............................. 3 51,385
Nippon Yusen Kabushiki Kaisha...... 2,000 8,182
Nissan Motor Co.................... 1,000 3,935
NSK Ltd............................ 1,000 6,842
Oji Paper Co....................... 1,000 6,019
Sekisui House...................... 1,000 8,858
Sharp Corp......................... 1,000 25,595
Softbank Corp...................... 300 287,168
Teijin............................. 1,000 3,690
Tobu Railway Co.................... 1,000 2,936
Toppan Printing Co................. 1,000 9,983
Toshiba Corp....................... 2,000 15,269
Toyota Motor Corp.................. 1,000 48,449
----------
750,870
----------
MALAYSIA 0.2%
RHB Capital Berhard................ 9,000 9,332
----------
NETHERLANDS 1.7%
ABN Amro Holdings.................. 660 16,488
Akzo Nobel......................... 400 20,066
Elsevier........................... 700 8,363
Koninklijke Ahold NV............... 547 16,195
Wolters Kluwer..................... 408 13,810
----------
74,922
----------
REPUBLIC OF KOREA 0.4%
Korea Electric Power
Corp. -- ADR..................... 307 5,142
Pohang Iron & Steel Co.,
Ltd. -- ADR...................... 317 11,095
----------
16,237
----------
SINGAPORE 1.1%
Singapore Telecommunications....... 24,000 49,571
----------
SOUTH AFRICA 0.2%
Sasol Ltd. -- ADR.................. 1,126 9,430
----------
SPAIN 2.3%
Endesa, SA......................... 300 5,956
Repsol-YPF, SA..................... 1,200 27,827
Telefonica de Espana (a)........... 2,667 66,628
----------
100,411
----------
SWEDEN 1.2%
Ericsson Telefon LM, Ser B......... 800 51,428
----------
</TABLE>

See Notes to Financial Statements

29
<PAGE> 104
GLOBAL EQUITY PORTFOLIO PORTFOLIO OF INVESTMENTS

December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Market
Description Shares Value
- --------------------------------------------------------
<S> <C> <C>
SWITZERLAND 2.6%
Credit Suisse Group................ 200 $ 39,754
Nestle, SA......................... 10 18,320
Novartis, AG....................... 20 29,366
Roche Holdings Genusscheine, AG.... 2 23,739
----------
111,179
----------
UNITED KINGDOM 9.5%
Allied Zurich (a).................. 850 10,023
Barclays........................... 1,000 28,736
Bass............................... 1,160 14,597
BP Amoco........................... 2,324 23,459
BP Amoco PLC -- ADR................ 528 31,317
British America Tobacco............ 850 4,806
British Telecommunications......... 2,400 58,151
Burmah Castrol PLC................. 583 10,302
Carlton Communications............. 2,500 24,351
Glaxo Wellcome..................... 1,000 28,332
HSBC Holdings...................... 3,300 45,736
Invensys PLC....................... 1,255 6,635
Lloyds TSB Group................... 2,100 26,085
Marks & Spencer.................... 1,200 5,738
Rank Group......................... 2,486 8,031
Scot & Newcastle................... 2,100 14,586
ScottishPower PLC -- ADR........... 580 16,240
Smithkline Beecham................. 2,000 25,360
Smiths Industries.................. 1,000 14,942
Zeneca Group....................... 400 16,618
----------
414,045
----------
UNITED STATES 40.9%
Abbott Laboratories, Inc........... 600 21,788
Alcoa, Inc......................... 400 33,200
American Express Co................ 200 33,250
American Home Products Corp........ 600 23,663
American International Group,
Inc.............................. 375 40,547
AT&T Corp.......................... 750 38,062
Bank of America Corp............... 100 5,019
BellSouth Corp..................... 800 37,450
Boeing Co.......................... 100 4,156
Bristol-Myers Squibb Co............ 600 38,512
Chevron Corp....................... 300 25,988
Cisco Systems, Inc. (a)............ 900 96,412
Citigroup, Inc..................... 750 41,672
Coca Cola Co....................... 700 40,775
Columbia/HCA Healthcare Corp....... 300 8,794
Conexant Systems, Inc. (a)......... 300 19,913
Delphi Automotive Systems Corp..... 209 3,292
Dominion Resources, Inc............ 700 27,475
Dow Chemical Co.................... 200 26,725
Du Pont (E. I.) de Nemours & Co.... 200 13,175
Eastman Kodak Co................... 200 13,250
Exxon Mobil Corp................... 264 21,269
Federal National Mortgage
Association...................... 300 18,731
</TABLE>

<TABLE>
<CAPTION>
Market
Description Shares Value
- --------------------------------------------------------
<S> <C> <C>
First Data Corp.................... 400 $ 19,725
FPL Group, Inc..................... 400 17,125
General Electric Co................ 300 46,425
General Motors Corp................ 300 21,806
Gillette Co........................ 400 16,475
Hewlett Packard Co................. 300 34,181
Home Depot, Inc.................... 750 51,422
Illinois Tool Works, Inc........... 200 13,513
Intel Corp......................... 400 32,925
International Business Machines
Corp............................. 400 43,200
International Paper Co............. 300 16,931
J.C. Penney, Inc................... 300 5,981
Johnson & Johnson.................. 300 27,938
JP Morgan & Co., Inc............... 300 37,987
Kimberly-Clark Corp................ 300 19,575
LifePoint Hospitals, Inc........... 15 177
Lilly Eli & Co..................... 300 19,950
Lucent Technologies, Inc........... 1,200 89,775
McDonald's Corp.................... 800 32,250
MCI WorldCom, Inc. (a)............. 1,050 55,716
Meritor Automotive, Inc............ 100 1,937
Microsoft Corp. (a)................ 1,200 140,100
Minnesota Mining & Manufacturing
Co............................... 300 29,362
Motorola, Inc...................... 200 29,450
Oracle Corp. (a)................... 375 42,023
Pfizer, Inc........................ 600 19,463
Procter & Gamble Co................ 300 32,869
Raytheon Co., Class A.............. 25 620
Rockwell International Corp........ 300 14,363
SBC Communications, Inc............ 800 39,000
Schering-Plough Corp............... 400 16,875
Sears Roebuck & Co................. 300 9,131
Time Warner, Inc................... 600 43,462
Triad Hospitals, Inc............... 15 227
Warner-Lambert Co.................. 600 49,162
Wells Fargo Co..................... 1,000 40,437
Weyerhaeuser Co.................... 300 21,544
Xerox Corp......................... 600 13,613
----------
1,779,833
----------
TOTAL LONG-TERM INVESTMENTS 99.3%
(Cost $2,527,840)........................ 4,315,127
REPURCHASE AGREEMENT 2.5%
State Street Bank & Trust Co., dated
12/31/99, due 01/03/00, to be repurchased
at $109,023, collateralized by $110,000
U.S. Treasury Note, 6.250%, due 08/31/02,
valued at $112,338 (Cost $109,000)....... 109,000
----------
TOTAL INVESTMENTS 101.8%
(Cost $2,636,840)........................ 4,424,127
FOREIGN CURRENCY 0.0%
(Cost $3)................................ 4
LIABILITIES IN EXCESS OF OTHER
ASSETS (1.8%)........................... (76,984)
----------
NET ASSETS 100.0%......................... $4,347,147
==========
</TABLE>

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

ADR -- American Depository Receipt

See Notes to Financial Statements

30
<PAGE> 105

GLOBAL EQUITY PORTFOLIO STATEMENT OF ASSETS AND LIABILITIES

December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Total Investments (Cost $2,636,840)......................... $4,424,127
Cash........................................................ 689
Foreign Currency (Cost $3).................................. 4
Receivables:
Dividends................................................. 6,077
Interest.................................................. 8
Unamortized Organizational Costs............................ 674
Forward Currency Contracts.................................. 18
Other....................................................... 163
----------
Total Assets.......................................... 4,431,760
----------
LIABILITIES:
Payables:
Distributor and Affiliates................................ 3,938
Fund Shares Repurchased................................... 58
Accrued Expenses............................................ 47,193
Trustees' Deferred Compensation and Retirement Plans........ 33,424
----------
Total Liabilities..................................... 84,613
----------
NET ASSETS.................................................. $4,347,147
==========
NET ASSETS CONSIST OF:
Capital (Par Value of $.01 per share with an unlimited
number of shares authorized).............................. $2,597,427
Net Unrealized Appreciation................................. 1,787,251
Accumulated Net Realized Loss............................... (708)
Accumulated Distributions in Excess of Net Investment
Income.................................................... (36,823)
----------
NET ASSETS.................................................. $4,347,147
==========
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER
SHARE (Based on net assets of $4,347,147 and 256,613
shares of beneficial interest issued and outstanding)..... $ 16.94
==========
</TABLE>

See Notes to Financial Statements

31
<PAGE> 106

GLOBAL EQUITY PORTFOLIO STATEMENT OF OPERATIONS

For the Year Ended December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (Net of foreign withholding taxes of $4,592)...... $ 53,990
Interest.................................................... 2,007
----------
Total Income............................................ 55,997
----------
EXPENSES:
Custody..................................................... 61,677
Investment Advisory Fee..................................... 34,688
Shareholder Reports......................................... 17,155
Audit....................................................... 15,946
Shareholder Services........................................ 15,611
Trustees' Fees and Related Expenses......................... 10,912
Accounting.................................................. 7,088
Amortization of Organizational Costs........................ 1,365
Legal....................................................... 486
Other....................................................... 2,089
----------
Total Expenses.......................................... 167,017
Expense Reduction ($34,688 Investment Advisory Fee and
$90,836 Other)......................................... 125,524
----------
Net Expenses............................................ 41,493
----------
NET INVESTMENT INCOME....................................... $ 14,504
==========
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Gain/Loss:
Investments............................................... $ 51,044
Foreign Currency Translation.............................. (17,190)
----------
Net Realized Gain........................................... 33,854
----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 880,273
----------
End of the Period:
Investments............................................. 1,787,287
Forward Currency Contracts.............................. 18
Foreign Currency Translation............................ (54)
----------
1,787,251
----------
Net Unrealized Appreciation During the Period............... 906,978
----------
NET REALIZED AND UNREALIZED GAIN............................ $ 940,832
==========
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $ 955,336
==========
</TABLE>

See Notes to Financial Statements

32
<PAGE> 107

GLOBAL EQUITY PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS

For the Years Ended December 31, 1999 and 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Year Ended Year Ended
December 31, 1999 December 31, 1998
- --------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income....................................... $ 14,504 $ 25,140
Net Realized Gain........................................... 33,854 17,243
Net Unrealized Appreciation During the Period............... 906,978 572,323
---------- -----------
Change in Net Assets from Operations........................ 955,336 614,706
---------- -----------
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)
---------- -----------
Distributions from Net Realized Gain........................ (33,854) -0-
Distributions in Excess of Net Realized Gain................ (10,981) -0-
---------- -----------
Distributions from and in Excess of Net Realized Gain....... (44,835) -0-
---------- -----------
Total Distributions......................................... (54,376) (38,010)
---------- -----------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES......... 900,960 576,696
---------- -----------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold................................... 829,783 782,393
Net Asset Value of Shares Issued Through Dividend
Reinvestment.............................................. 33,418 24,409
Cost of Shares Repurchased.................................. (767,893) (1,006,628)
---------- -----------
NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS.......... 95,308 (199,826)
---------- -----------
TOTAL INCREASE IN NET ASSETS................................ 996,268 376,870
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 $36,823 and $24,594,
respectively)............................................. $4,347,147 $ 3,350,879
========== ===========
</TABLE>

See Notes to Financial Statements

33
<PAGE> 108

GLOBAL EQUITY PORTFOLIO FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
July 3, 1995
(Commencement
Year Ended December 31, of Investment
------------------------------------- Operations) to
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..................... .240 .089 .110 .035 (.16)
Net Realized and Unrealized Gain............... 3.712 2.258 1.696 1.687 .46
------- ------- ------- ------- -------
Total from Investment Operations................. 3.952 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................................ .179 -0- 2.354 .176 -0-
------- ------- ------- ------- -------
Total Distributions.............................. .220 .143 2.460 .364 -0-
------- ------- ------- ------- -------
Net Asset Value, End of the Period............... $16.940 $13.208 $11.004 $11.658 $ 10.30
======= ======= ======= ======= =======
Total Return*.................................... 30.06% 21.61% 15.85% 16.72% 3.00%**
Net Assets at End of the Period (In millions).... $ 4.3 $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*.................................... .42% 0.79% .76% .27% (2.76%)
Portfolio Turnover............................... 7% 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.......... 4.84% 6.27% 6.78% 7.43% 8.27%
Ratio of Net Investment Loss to Average Net
Assets......................................... (3.22%) (4.28%) (4.82%) (5.96%) (6.68%)
</TABLE>

**Non-Annualized

See Notes to Financial Statements

34
<PAGE> 109

PERFORMANCE RESULTS FOR THE PERIOD ENDED DECEMBER 31, 1999

VAN KAMPEN LIFE INVESTMENT TRUST

GOVERNMENT PORTFOLIO

<TABLE>
<S> <C>
TOTAL RETURNS
One-year total return based on NAV(1)....................... (3.36%)
Five-year average annual total return based on NAV(1)....... 6.60%
Ten-year average annual total return based on NAV(1)........ 6.54%
Life-of-Portfolio average annual total return based on
NAV(1)...................................................... 6.42%
Commencement date........................................... 04/07/86
YIELD
SEC Yield(2)................................................ 5.92%
</TABLE>

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. The Portfolio
is subject to certain risks. These risks include, but are not limited to: market
risk--the possibility that the market values of securities owned by the
Portfolio will decline; credit risk--an issuer's ability to make timely payments
of interest and principal; income risk--the income you receive from the
Portfolio is based primarily on interest rates, which can vary widely over the
short and long term; prepayment risk--if interest rates fall, the principal on
debt securities held by the Portfolio may be paid earlier than expected;
extension risk--the value of debt securities tends to fall as interest rates
rise; derivative investment risk--a derivative investment is one whose value
depends on (or is derived from) the value of an underlying asset, interest rate
or index and involves risks different from investment in the underlying
security; and manager risk--management may not be successful in selecting the
best performing securities and the Portfolio's performance may lag behind that
of similar portfolios. 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.

35
<PAGE> 110

PUTTING YOUR PORTFOLIO'S PERFORMANCE IN PERSPECTIVE

GOVERNMENT PORTFOLIO

- Illustrate the market environment in which your Portfolio is being
managed.

- Reflect the impact of favorable market trends or difficult market
conditions.

- Help you evaluate how your Portfolio's management team has responded to
the opportunities and challenges.

The following graph compares your Portfolio's performance to that of the
Lehman Brothers Mutual Fund Government/Mortgage Index over time. This index is a
broad-based, statistical composite that does not include any commissions or fees
that would be paid by an investor purchasing the securities it represents. Such
costs would lower the performance of the index. An investment cannot be made
directly in an index.

GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
Van Kampen Life Investment Trust--Government Portfolio vs. the Lehman
Brothers Mutual Fund Government/Mortgage Index (December 31, 1989, through
December 31, 1999)
[LINE GRAPH]
- ------------------------------
Portfolio's Total Return
1 Year Avg. Annual = -3.36%
5 Year Avg. Annual = 6.60%
10 Year Avg. Annual = 6.54%
- ------------------------------

<TABLE>
<CAPTION>
VAN KAMPEN LIT-GOVERNMENT LEHMAN BROTHERS MUTUAL FUND
PORTFOLIO GOVERNMENT/MORTGAGE INDEX
------------------------- ---------------------------
<S> <C> <C>
Dec 1989 10000.00 10000.00
9812.00 9883.00
9630.00 9916.00
9635.00 9923.00
9737.00 9835.00
10012.00 10120.00
10148.00 10280.00
10296.00 10428.00
10207.00 10296.00
10285.00 10389.00
10413.00 10540.00
10652.00 10770.00
Dec 1990 10831.00 10942.00
10967.00 11076.00
11069.00 11149.00
11125.00 11213.00
11233.00 11329.00
11317.00 11393.00
11307.00 11386.00
11479.00 11542.00
11715.00 11789.00
11953.00 12027.00
12129.00 12167.00
12196.00 12276.00
Dec 1991 12589.00 12633.00
12376.00 12454.00
12476.00 12528.00
12420.00 12452.00
12475.00 12546.00
12705.00 12776.00
12845.00 12947.00
13003.00 13197.00
13148.00 13337.00
13237.00 13495.00
13101.00 13328.00
13137.00 13328.00
Dec 1992 13311.00 13534.00
13515.00 13782.00
13721.00 14009.00
13772.00 14069.00
13891.00 14164.00
13906.00 14183.00
14127.00 14423.00
14172.00 14501.00
14338.00 14734.00
14331.00 14775.00
14392.00 14826.00
14284.00 14711.00
Dec 1993 14358.00 14789.00
14548.00 14972.00
14256.00 14728.00
13786.00 14379.00
13648.00 14268.00
13629.00 14276.00
13589.00 14244.00
13825.00 14514.00
13833.00 14532.00
13643.00 14326.00
13606.00 14317.00
13557.00 14284.00
Dec 1994 13693.00 14380.00
13974.00 14662.00
14336.00 14998.00
14374.00 15083.00
14575.00 15286.00
15033.00 15856.00
15084.00 15967.00
15062.00 15937.00
15226.00 16117.00
15350.00 16267.00
15556.00 16480.00
15014.00 16713.00
Dec 1995 16043.00 16940.00
16136.00 17052.00
15829.00 16777.00
15686.00 16665.00
15555.00 16580.00
15501.00 16545.00
15697.00 16764.00
15720.00 16812.00
15678.00 16788.00
15933.00 17068.00
16282.00 17429.00
16595.00 17712.00
Dec 1996 16383.00 17564.00
16417.00 17624.00
16445.00 17660.00
16244.00 17481.00
16485.00 17743.00
16649.00 17904.00
16872.00 18107.00
17351.00 18557.00
17164.00 18425.00
17431.00 18686.00
17698.00 18966.00
17768.00 19050.00
Dec 1997 17958.00 19239.00
18250.00 19491.00
18179.00 19474.00
18220.00 19540.00
18261.00 19636.00
18464.00 19810.00
18627.00 19985.00
18667.00 20041.00
19094.00 20430.00
19664.00 20861.00
19501.00 20806.00
19481.00 20852.00
Dec 1998 19501.00 20915.00
19623.00 21046.00
19176.00 20714.00
19273.00 20820.00
19273.00 20886.00
18974.00 20732.00
18646.00 20676.00
18739.00 20597.00
18697.00 20597.00
18953.00 20838.00
19017.00 20909.00
18974.00 20898.00
Dec 1999 18846.00 20800.00
</TABLE>

The above chart reflects the performance of the Portfolio. The Portfolio's
performance assumes reinvestment of all distributions and is shown at net asset
value.

36
<PAGE> 111

PORTFOLIO MANAGEMENT REVIEW

GOVERNMENT PORTFOLIO

The following is an interview with representatives of the adviser of the Van
Kampen Life Investment Trust--Government Portfolio. The representatives are 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 In the first days of 1999, the fixed-income market appeared to be poised
for a slowdown in the global economy after the meltdown in Asia and
concurrent economic turmoil from the previous fall. Fixed-income
securities grew less expensive as a result of high levels of price
volatility and uncertainties regarding credit risk.
As the new year unfolded, however, it became clear that the global economy
had not only stabilized, but that positive economic growth, particularly in the
United States, had strongly reemerged. Concerns about inflationary pressures
grew in the second half of the year, fueled by tight labor markets and rallying
commodity prices. In response, the Federal Reserve Board systematically added
the 75 basis points it had withdrawn from the federal funds rate in 1998.
Meanwhile, the market grew wary of the potential year 2000
problem--specifically, the effects it might have on new bond supply and cash for
investors through the millennium.
As a result of the conditions above, interest rates rose steadily during the
year as economic realities proved to be more positive than had originally been
expected. For example, the 10-year Treasury note, which began the year with a
4.64 percent yield, ended the period with a 6.43 percent yield--a rise of 1.79
percent. During this time, the yield curve also flattened as shorter-term yields
increased more than longer-term yields, which rose only 1.39 percent.
Fixed-income securities experienced a topsy-turvy year, as yield spreads
tightened through May, widened into August due to year 2000 perception, and
finally tightened again as investors recognized that reports of computer
problems had been overblown.

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

A We maintained a substantial percentage of the Portfolio's assets in
mortgage-backed securities for most of the period. When spreads began to
widen late in the second quarter, we slightly decreased this position,
only to replenish the mortgage-backed allocation when the securities
became less expensive in August. Within this sector, the Portfolio was comprised
primarily of GNMA issues yielding 6.5 and 7 percent. We believed these holdings
presented good values and were exposed to negligible homeowner refinancing
risks.
We also maintained the Portfolio's Treasury holdings in a barbell pattern,
with the heaviest weightings falling on the short- and long-maturity ends of the
yield curve. Our strategy was to minimize holdings in the "belly" of the curve,
which was especially vulnerable to flattening of the yield curve. We felt this
strategy was effective, given the rising interest-rate environment and the
changing shape of the curve.
Finally, we held the Portfolio's duration modestly higher than its benchmark
for much of the period. Because of the rise in interest rates, this position
moderately restrained the Portfolio's performance until we pared back the
duration near the end of the period.

Q HOW DID THE PORTFOLIO PERFORM DURING THE REPORTING PERIOD?

A Rising interest rates and challenging market conditions were the most
significant factors affecting the Portfolio's return. For the 12-month
period ended December 31, 1999, the Government Portfolio generated a total
return of -3.36 percent.(1) By comparison, the Lehman Brothers Mutual Fund
Government/Mortgage Index posted a total return of -0.54 percent for the same
period. This broad-based, unmanaged index, which reflects the general
performance of U.S. government and mortgage-backed securities, does not reflect
any commissions or fees that would be paid by an investor purchasing the
securities it represents. Such costs would lower the performance of the index.
An investment

37
<PAGE> 112

cannot be made directly in an index. Of course, past performance is no guarantee
of comparable future results. For additional performance results, please refer
to the chart and footnotes on page 35.

Q WHAT IS YOUR OUTLOOK FOR THE MONTHS AHEAD?

A We continue to see value in the mortgage market and believe it will be
buoyed by increased demand from banks and other interested investors in
the coming months. Of course, we will continue to keep a close eye on the
changing yield spreads between Treasuries and other fixed-income securities, but
we expect yield spreads to be fairly contained. We believe our ongoing
evaluation of the relationship between mortgages and Treasuries will enable us
to maintain an optimal balance between the two sectors in the Portfolio.
Assuming that additional interest-rate increases are on the horizon, we will
also continue our efforts to adjust the Portfolio's duration to more neutral
levels.

38
<PAGE> 113

GOVERNMENT PORTFOLIO PORTFOLIO OF INVESTMENTS

December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS 70.3%
$2,000 Federal Farm Credit Bank Medium Term Note............. 6.520% 09/24/07 $ 1,934,700
971 Federal Home Loan Mortgage Corp. Gold 30 Year Pools... 7.000 05/01/24 to 07/01/24 940,877
150 Federal Home Loan Mortgage Corp. Gold 30 Year Pools... 7.500 10/1/24 148,573
130 Federal Home Loan Mortgage Corp. Gold 30 Year Pools... 8.000 09/01/24 to 10/01/24 131,424
500 Federal Home Loan Mortgage Corp. Pools................ 5.750 03/15/09 455,865
2,991 Federal Home Loan Mortgage Corp. Pools................ 6.000 05/01/2029 to 09/01/2029 2,739,439
2,486 Federal Home Loan Mortgage Corp. Pools................ 6.500 05/01/2029 to 06/01/2029 2,346,741
1,998 Federal Home Loan Mortgage Corp. Pools................ 7.500 10/01/2029 to 11/01/2029 1,978,924
356 Federal Home Loan Mortgage Corp. CMO Floater.......... 5.840 09/15/27 356,812
168 Federal Home Loan Mortgage Corp. CMO Floater.......... 5.910 09/15/23 167,336
1,161 Federal National Mortgage Association 15 Year Dwarf
Pools................................................. 6.500 06/01/09 to 04/01/11 1,134,288
1,074 Federal National Mortgage Association 15 Year Dwarf
Pools................................................. 7.000 07/01/10 to 01/01/12 1,065,211
167 Federal National Mortgage Association Pools........... 5.500 07/01/24 to 02/01/29 148,752
2,154 Federal National Mortgage Association Pools........... 6.000 01/01/14 to 12/01/28 2,038,072
500 Federal National Mortgage Association Pools........... 6.250 11/15/02 494,690
500 Federal National Mortgage Association Pools........... 6.375 06/15/09 476,475
5,760 Federal National Mortgage Association Pools........... 6.500 03/01/26 to 09/01/29 5,433,994
970 Federal National Mortgage Association Pools........... 7.000 12/01/23 to 06/01/24 940,159
263 Federal National Mortgage Association Pools........... 7.500 05/01/24 to 10/01/24 260,555
230 Federal National Mortgage Association Pools........... 8.000 06/01/24 to 10/01/24 231,787
401 Federal National Mortgage Association Pools........... 11.000 11/01/20 444,184
4,823 Government National Mortgage Association Pools (a).... 6.500 05/15/23 to 03/15/29 4,529,691
7,451 Government National Mortgage Association Pools (a).... 7.000 04/15/23 to 04/15/29 7,206,177
943 Government National Mortgage Association Pools........ 7.500 12/15/21 to 06/15/24 933,832
225 Government National Mortgage Association Pools........ 8.000 05/15/17 to 01/15/23 227,940
196 Government National Mortgage Association Pools........ 8.500 04/15/17 to 07/15/17 202,864
448 Government National Mortgage Association Pools........ 9.500 06/15/09 to 10/15/09 479,892
28 Government National Mortgage Association Pools........ 11.000 09/15/10 to 08/15/20 31,329
-----------
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS........................................ 37,480,583
-----------
UNITED STATES TREASURY OBLIGATIONS 8.6%
4,000 United States Treasury Bonds (a)...................... 6.000 02/15/26 3,657,960
1,000 United States Treasury Notes (a)...................... 5.500 2/15/08 936,380
-----------
TOTAL UNITED STATES TREASURY OBLIGATIONS................................................. 4,594,340
-----------
TOTAL LONG-TERM INVESTMENTS 78.9%
(Cost $43,398,766).............................................................................. 42,074,923
REPURCHASE AGREEMENT 19.7%
Fuji Securities Incorporated ($10,520,000 par collateralized by U.S. Government obligations in a
pooled cash account, dated 12/31/99, to be sold on 1/3/00 at $10,520,000)
(Cost $10,519,182).............................................................................. 10,519,182
-----------
TOTAL INVESTMENTS 98.6%
(Cost $53,917,948).............................................................................. 52,594,105
OTHER ASSETS IN EXCESS OF LIABILITIES 1.4%....................................................... 735,193
-----------
NET ASSETS 100.0%............................................................................... $53,329,298
===========
</TABLE>

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

CMO--Collateralized Mortgage Obligations

See Notes to Financial Statements

39
<PAGE> 114

GOVERNMENT PORTFOLIO STATEMENT OF ASSETS AND LIABILITIES

December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Total Investments, including a repurchase agreement of
$10,519,182 (Cost $53,917,948)............................ $52,594,105
Cash........................................................ 537,911
Interest Receivable......................................... 360,557
Other....................................................... 46,950
-----------
Total Assets.......................................... 53,539,523
-----------
LIABILITIES:
Payables:
Variation Margin on Futures............................... 30,313
Investment Advisory Fee................................... 16,836
Distributor and Affiliates................................ 11,200
Portfolio Shares Repurchased.............................. 7,007
Trustees' Deferred Compensation and Retirement Plans........ 124,170
Accrued Expenses............................................ 20,699
-----------
Total Liabilities..................................... 210,225
-----------
NET ASSETS.................................................. $53,329,298
===========
NET ASSETS CONSIST OF:
Capital (Par value of $.01 per share with an unlimited
number of shares authorized).............................. $61,096,754
Accumulated Undistributed Net Investment Income............. 3,221,466
Net Unrealized Depreciation................................. (1,507,647)
Accumulated Net Realized Loss............................... (9,481,275)
-----------
NET ASSETS.................................................. $53,329,298
===========
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER
SHARE
(Based on net assets of $53,329,298 and 6,047,586 shares
of beneficial interest issued and outstanding)............ $ 8.82
===========
</TABLE>

See Notes to Financial Statements

40
<PAGE> 115

GOVERNMENT PORTFOLIO STATEMENT OF OPERATIONS

For the Year Ended December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest.................................................... $ 3,540,737
-----------
EXPENSES:
Investment Advisory Fee..................................... 275,370
Custody..................................................... 28,728
Trustees' Fees and Related Expenses......................... 31,469
Accounting.................................................. 29,309
Shareholder Services........................................ 16,629
Legal....................................................... 7,062
Other....................................................... 23,061
-----------
Total Expenses.......................................... 411,628
Investment Advisory Fee Reduction....................... 76,349
Less Credits Earned on Overnight Cash Balances.......... 2,256
-----------
Net Expenses............................................ 333,023
-----------
NET INVESTMENT INCOME....................................... $ 3,207,714
===========
REALIZED AND UNREALIZED GAIN/LOSS:
Realized Gain/Loss:
Investments............................................... $ (826,384)
Futures................................................... (982,628)
-----------
Net Realized Loss........................................... (1,809,012)
-----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 1,842,793
-----------
End of the Period:
Investments............................................. (1,323,843)
Futures................................................. (183,804)
-----------
(1,507,647)
-----------
Net Unrealized Depreciation During the Period............... (3,350,440)
-----------
NET REALIZED AND UNREALIZED LOSS............................ $(5,159,452)
===========
NET DECREASE IN NET ASSETS FROM OPERATIONS.................. $(1,951,738)
===========
</TABLE>

See Notes to Financial Statements

41
<PAGE> 116

GOVERNMENT PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS

For the Years Ended December 31, 1999 and 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Year Ended Year Ended
December 31, 1999 December 31, 1998
- --------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income....................................... $ 3,207,714 $ 3,088,718
Net Realized Gain/Loss...................................... (1,809,012) 973,202
Net Unrealized Appreciation/Depreciation During the
Period.................................................... (3,350,440) 327,575
----------- -----------
Change in Net Assets from Operations........................ (1,951,738) 4,389,495
Distributions from Net Investment Income.................... (2,745,022) (529,309)
----------- -----------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES......... (4,696,760) 3,860,186
----------- -----------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold................................... 9,298,965 11,164,705
Net Asset Value of Shares Issued Through Dividend
Reinvestment.............................................. 2,745,022 529,309
Cost of Shares Repurchased.................................. (11,077,541) (11,052,927)
----------- -----------
NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS.......... 966,446 641,087
----------- -----------
TOTAL INCREASE/DECREASE IN NET ASSETS....................... (3,730,314) 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 $3,221,466 and $2,681,124,
respectively)............................................. $53,329,298 $57,059,612
=========== ===========
</TABLE>

See Notes to Financial Statements

42
<PAGE> 117

GOVERNMENT PORTFOLIO FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
Year Ended December 31,
-----------------------------------------------------------
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......................... .526 .520 .566 .569 .60
Net Realized and Unrealized Gain/Loss......... (.845) .244 .231 (.388) .78
------- ------- ------- ------- -------
Total from Investment Operations................ (.319) .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.............. $ 8.818 $ 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)... $ 53.3 $ 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*....................................... 5.92% 5.74% 6.51% 6.56% 6.89%
Portfolio Turnover.............................. 92% 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........................................ 5.78% 5.61% 6.37% 6.36% 6.77%
</TABLE>

See Notes to Financial Statements

43
<PAGE> 118

PORTFOLIO MANAGEMENT REVIEW

MONEY MARKET PORTFOLIO

The following is an interview with representatives of the adviser of the Van
Kampen Life Investment Trust--Money Market Portfolio. The representatives are
led by Reid Hill and Michael Bird, portfolio managers, and Peter W. Hegel, chief
investment officer for fixed-income investments.

Q HOW WOULD YOU CHARACTERIZE THE ECONOMIC AND MARKET CONDITIONS IN WHICH THE
PORTFOLIO OPERATED DURING THE PAST 12 MONTHS?

A A robust domestic economy, buoyed by high employment rates and strong
consumer activity, prompted the Federal Reserve Board to implement
interest-rate hikes in June, August, and November in an attempt to ward
off inflation. The cumulative effect of these rate hikes restored the federal
funds rate to its September 1998 level of 5.50 percent.
Against this backdrop, the Dow Jones Industrial Average continued along its
volatile path, ending the period with a return to its mid-year record highs. The
equity market easily outshone the fixed-income market, which suffered in the
third quarter of 1999 amid concerns that Year 2000 computer problems might make
it difficult for investors to liquidate their investments in the final weeks of
the year. As fears heightened, yield spreads widened between Treasuries and
other types of bonds, such as corporate, high-yield, and mortgage-backed
securities.
In an effort to reassure investors, the Fed announced a series of programs
designed to maintain cash reserves for banks and investment companies. The
programs gave institutional investors several options for procuring liquid
assets, including the ability to borrow funds from the Fed. These steps helped
settle the fixed-income market toward the end of the Portfolio's reporting
period.

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

A We continued to pursue our allocation model, in which half of the
Portfolio's assets would be invested in commercial paper, a third of the
Portfolio's assets invested in bank notes and CDs (certificates of
deposit), and the remainder invested in agency discount notes and
repurchase agreements ("repos"). During the past year, we maintained a focus on
commercial paper, which tends to provide the greatest yield advantage among the
Portfolio's investments. Correspondingly, we decreased the Portfolio's emphasis
on bank notes and CDs, which provided less value. However, market volatility
prompted us to pursue the liquidity of repos, thus creating a slight
underweighting in the commercial paper sector at the end of the reporting
period.
Within the commercial paper sector, we continued to select high-rated,
short-term corporate securities with ratings of at least A-1/P-1 from Moody's
and Standard & Poor's. These corporate securities provided income without
assuming excessive risk. We also continued to favor commercial paper with an
average maturity of 90 days or less. In the current interest-rate environment,
we believe there is little benefit in extending the Portfolio's risk by
investing in longer-term paper, which provides only a minimally higher return
than shorter-term paper.

Q HOW DID THE PORTFOLIO PERFORM DURING THE REPORTING PERIOD?

A The Portfolio continued to provide shareholders with relative stability,
daily liquidity at $1.00 per share, and a competitive level of current
income. For the 12-month period ended December 31, 1999, the Portfolio
produced a total return of 4.63 percent. As of December 31, the Portfolio
generated a seven-day average yield of 4.80 percent and a 30-day effective yield
of 5.10 percent. The Portfolio's price per share remained unchanged at $1.00
throughout the reporting period.

44
<PAGE> 119

Q WHAT IS YOUR OUTLOOK FOR THE MARKET OVER THE COMING MONTHS?

A We expect the Fed to continue to gauge the strength of the economy and
indications of increasing price pressures in order to determine if another
interest-rate hike is warranted. At this point, we anticipate at least one
rate hike in the first few months of the year, although the market appears to be
preparing for the possibility of more than one increase.
In conjunction with this outlook, we will maintain our pursuit of the
allocation model described earlier in this report. Given our perspective on the
interest-rate environment, our focus on securities with short maturities will
continue in the foreseeable future. At the same time, we'll look to add value to
the Portfolio through careful security selection as we continue to seek to
achieve the Portfolio's objective of protection of capital and high current
income.

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 is offered through a variable annuity contract.

45
<PAGE> 120

MONEY MARKET PORTFOLIO PORTFOLIO OF INVESTMENTS

December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Discount
Par Yield on
Amount Maturity Date of Amortized
(000) Description Date Purchase Cost
- ------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
COMMERCIAL PAPER 37.0%
$1,000 American Express Credit Corp. .............................. 02/16/00% 5.853% $ 992,678
800 American General Finance Corp. ............................. 02/22/00 6.003 793,217
1,000 Associates Corp. of North America........................... 01/24/00 5.883 996,307
1,000 Chevron USA, Inc. .......................................... 01/21/00 6.033 996,706
1,000 CIT Group Holdings, Inc. ................................... 01/26/00 5.946 995,945
1,000 Citicorp.................................................... 02/08/00 6.092 993,698
1,000 Coca-Cola Co. .............................................. 01/28/00 6.132 995,485
1,000 Ford Motor Credit Co. ...................................... 01/19/00 6.154 996,975
1,000 General Electric Corp. ..................................... 02/28/00 5.937 990,656
1,000 IBM Credit Corp. ........................................... 03/20/00 6.113 986,943
1,000 John Deere Capital Corp. ................................... 02/02/00 5.810 994,933
800 Norwest Financial, Inc. .................................... 02/07/00 5.917 795,231
800 Prudential Funding Corp. ................................... 02/04/00 5.893 795,633
-----------
TOTAL COMMERCIAL PAPER.............................................................. 12,324,407
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS 13.7%
493 Federal Farm Credit Bank Discount Note...................... 02/15/00 5.665 489,573
486 Federal Home Loan Bank Consolidated Discount Note........... 03/17/00 5.923 480,080
700 Federal Home Loan Mortgage Corp Discount Note............... 01/27/00 5.630 697,209
500 Federal Home Loan Mortgage Corp Discount Note............... 02/02/00 5.646 497,547
800 Federal Home Loan Mortgage Corp Discount Note............... 03/16/00 5.701 790,767
800 Federal National Mortgage Association Discount Note......... 07/07/00 5.452 778,150
839 Federal National Mortgage Association Discount Note......... 03/02/00 5.722 830,982
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS............................................ 4,564,308
-----------
CERTIFICATES OF DEPOSIT 12.3%
500 Bank One Illinois........................................... 04/06/00 6.000 500,000
800 Commerzbank AG.............................................. 02/01/00 5.000 799,984
800 National Westminster Bank................................... 01/07/00 5.010 799,994
1,000 UBS AG...................................................... 07/17/00 5.660 999,716
1,000 Westdeutsche Landesbank..................................... 03/06/00 6.060 1,000,025
-----------
TOTAL CERTIFICATES OF DEPOSIT....................................................... 4,099,719
-----------
NOTE 3.0%
1,000 Lasalle National Bank....................................... 02/18/00 6.030 1,000,000
-----------
REPURCHASE AGREEMENTS 32.9%
BankAmerica Securities ($4,000,000 par collateralized by U.S. Government obligations
in a pooled cash account, dated 12/31/99, to be sold on 01/03/00 at $4,000,917)... 4,000,000
State Street Bank & Trust Co. ($6,943,000 par collateralized by U.S. Government
obligations in a pooled cash account, dated 12/31/99, to be sold on 01/03/00 at
$6,944,736)....................................................................... 6,943,000
-----------
TOTAL REPURCHASE AGREEMENTS......................................................... 10,943,000
-----------
TOTAL INVESTMENTS 98.9%............................................................ 32,931,434
OTHER ASSETS IN EXCESS OF LIABILITIES 1.1%......................................... 362,813
-----------
NET ASSETS 100.0%.................................................................. $33,294,247
===========
</TABLE>

See Notes to Financial Statements

46
<PAGE> 121

MONEY MARKET PORTFOLIO STATEMENT OF ASSETS AND LIABILITIES

December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Investments, at amortized cost which approximates market,
including repurchase agreements of $10,943,000............ $32,931,434
Cash........................................................ 346,625
Interest Receivable......................................... 123,608
Other....................................................... 45,602
-----------
Total Assets.......................................... 33,447,269
-----------
LIABILITIES:
Payables:
Investment Advisory Fee................................... 7,462
Distributor and Affiliates................................ 5,101
Income Distribution....................................... 2,806
Trustees' Deferred Compensation and Retirement Plans........ 121,859
Accrued Expenses............................................ 15,794
-----------
Total Liabilities....................................... 153,022
-----------
NET ASSETS.................................................. $33,294,247
===========
NET ASSETS CONSIST OF:
Capital (Equivalent to $1.00 per share for 33,294,247 shares
outstanding).............................................. $33,294,247
===========
</TABLE>

See Notes to Financial Statements

47
<PAGE> 122

MONEY MARKET PORTFOLIO STATEMENT OF OPERATIONS

For the Year Ended December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest.................................................... $1,507,956
----------
EXPENSES:
Investment Advisory Fee..................................... 146,480
Trustees' Fees and Related Expenses......................... 32,481
Accounting.................................................. 24,073
Custody..................................................... 24,845
Shareholder Services........................................ 15,947
Audit....................................................... 11,363
Shareholder Reports......................................... 10,915
Legal....................................................... 2,509
Other....................................................... 1,927
----------
Total Expenses.......................................... 270,540
Investment Advisory Fee Reduction....................... 91,001
Less Credits Earned on Overnight Cash Balances.......... 3,448
----------
Net Expenses............................................ 176,091
----------
NET INVESTMENT INCOME....................................... $1,331,865
==========
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $1,331,865
==========
</TABLE>

See Notes to Financial Statements

48
<PAGE> 123

MONEY MARKET PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS

For the Years Ended December 31, 1999 and 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Year Ended Year Ended
December 31, 1999 December 31, 1998
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income....................................... $ 1,331,865 $ 1,061,603
----------- -----------
Distributions from Net Investment Income.................... (1,331,826) (1,061,807)
Distributions in Excess of Net Investment Income............ -0- (39)
----------- -----------
Distributions from and in Excess of Net Investment Income... (1,331,826) (1,061,846)
----------- -----------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES......... 39 (243)
----------- -----------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold................................... 36,672,632 31,396,945
Net Asset Value of Shares Issued Through Dividend
Reinvestment.............................................. 1,341,788 1,061,846
Cost of Shares Repurchased.................................. (31,429,889) (25,489,643)
----------- -----------
NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS.......... 6,584,531 6,969,148
----------- -----------
TOTAL INCREASE IN NET ASSETS................................ 6,584,570 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 $0 and $(39), respectively).......... $33,294,247 $26,709,677
=========== ===========
</TABLE>

See Notes to Financial Statements

49
<PAGE> 124

MONEY MARKET PORTFOLIO FINANCIAL HIGHLIGHTS

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

<TABLE>
<CAPTION>
Year Ended December 31,
--------------------------------------
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....................................... .045 .049 .049 .048 .0533
Less Distributions from Net Investment Income............... .045 .049 .049 .048 .0533
------ ----- ----- ----- -----
Net Asset Value, End of the Period.......................... $ 1.00 $1.00 $1.00 $1.00 $1.00
====== ===== ===== ===== =====
Total Return*............................................... 4.63% 5.02% 5.06% 4.89% 5.46%
Net Assets at End of the Period (In millions)............... $ 33.3 $26.7 $19.7 $19.6 $21.6
Ratio of Expenses to Average Net Assets* (a)................ .62% .60% .60% .60% .60%
Ratio of Net Investment Income to Average Net Assets*....... 4.25% 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 (a)................. .93% .99% .98% 1.29% .93%
Ratio of Net Investment Income to Average Net Assets........ 4.56% 4.49% 4.57% 4.10% 5.00%
</TABLE>

See Notes to Financial Statements

50
<PAGE> 125

NOTES TO FINANCIAL STATEMENTS

December 31, 1999
- --------------------------------------------------------------------------------

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 investment risk; Domestic Income
seeks current income as its primary objective and capital appreciation as a
secondary objective; Global Equity seeks long-term growth of capital through an
internationally diversified portfolio of equity securities of companies of any
nation, including the United States; Government seeks high current return
consistent with preservation of capital; and Money Market seeks protection of
capital and high current income by investing in money market instruments.
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. For Money Market, all investments are valued at amortized cost, which
approximates market value.
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 18% of Domestic Income's net assets at December 31,
1999.

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

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

51
<PAGE> 126
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 1999
- --------------------------------------------------------------------------------

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 "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.

52
<PAGE> 127
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 1999
- --------------------------------------------------------------------------------

tax 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.................... -- $ 1,083,199 --
Expiration dates of capital loss carryforward......... -- 2002-2007 --
Amount expiring on 12/31/00........................... -- -- --
Identified cost....................................... $47,343,466 $16,537,763 $2,650,368
Gross unrealized appreciation......................... 6,680,161 149,201 1,912,180
Gross unrealized depreciation......................... 1,420,886 743,910 138,417
Net unrealized appreciation/depreciation.............. 5,259,275 (594,709) 1,773,763
</TABLE>

<TABLE>
<CAPTION>
MONEY
GOVERNMENT MARKET
- ------------------------------------------------------------------------------------------
<S> <C> <C>
Realized capital loss carryforward.......................... $ 9,664,340 $ 1,765
Expiration dates of capital loss carryforward............... 2000-2007 2003-2007
Amount expiring on 12/31/00................................. $ 117,213 --
Identified cost............................................. $53,917,948 $32,931,434
Gross unrealized appreciation............................... 166,968 --
Gross unrealized depreciation............................... 1,490,811 --
Net unrealized appreciation/depreciation.................... (1,323,843) --
</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. The
following permanent differences between book and tax basis reporting for the
1999 fiscal year have been identified and appropriately reclassified.

<TABLE>
<CAPTION>
GLOBAL
DOMESTIC EQUITY GOVERNMENT
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Accumulated Undistributed Net Investment Income...... $ (7,381)(b) $(17,192)(a) $77,650 (b)
Accumulated Net Realized Gain/Loss................... 416,872(b)(c) 17,192(a) (77,650)(b)
Capital.............................................. (409,491)(c) -- --
</TABLE>

(a) For federal income tax purposes, realized gains and losses on transactions
in foreign currencies are included as ordinary income. These realized gains
and losses are included in net realized gain/loss for financial reporting
purposes and have been reclassified from accumulated net realized gain/loss
to accumulated undistributed net investment income.

53
<PAGE> 128
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 1999
- --------------------------------------------------------------------------------

(b) Accretion of market discounts on bonds and paydowns of mortgage pool
obligations are recognized as ordinary income/loss for federal income tax
purposes but as realized gains or losses for book purposes. These permanent
differences have been reclassified from accumulated net realized gain/loss
to accumulated undistributed net investment income.

(c) At December 31, 1999, all or a portion of capital loss carryforward expired
creating a permanent difference between book and tax basis reporting. These
items have been reclassified from accumulated net realized loss to capital.

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.

H. EXPENSE REDUCTIONS--During the year ended December 31, 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................................ $2,246 $2,148 $ -0- $2,256 $3,448
</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>

54
<PAGE> 129
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 1999
- --------------------------------------------------------------------------------

Other transactions with affiliates during the year ended December 31, 1999
were as follows:

<TABLE>
<CAPTION>
MONEY
GOVERNMENT MARKET
- -----------------------------------------------------------------------------------------
<S> <C> <C>
Accounting.................................................. $29,300 $24,100
Shareholder servicing agent's fees.......................... 16,600 15,000
Legal (Skadden Arps)........................................ 7,000 2,500
</TABLE>

3. CAPITAL TRANSACTIONS
For the year ended December 31, 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.................................................... 200,932 700,539 53,999
Dividend Reinvestment.................................... 680,053 155,098 2,147
Repurchases.............................................. (1,073,861) (873,380) (53,227)
----------- ----------- ----------
Ending Shares............................................ 4,399,081 2,030,866 256,613
=========== =========== ==========
Capital at 12/31/99...................................... $42,297,099 $16,763,020 $2,597,427
=========== =========== ==========
</TABLE>

55
<PAGE> 130
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 1999
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
MONEY
GOVERNMENT MARKET
- ----------------------------------------------------------------------------------------
<S> <C> <C>
Beginning Shares............................................ 5,947,274 26,709,716
Sales....................................................... 1,022,161 36,672,632
Dividend Reinvestment....................................... 305,002 1,341,788
Repurchases................................................. (1,226,851) (31,429,889)
----------- ------------
Ending Shares............................................... 6,047,586 33,294,247
=========== ============
Capital at 12/31/99......................................... $61,096,754 $ 33,294,247
=========== ============
</TABLE>

<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 long-term
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................................... $38,018,687 $12,598,685 $314,577 $45,887,119
Sales....................................... 50,581,909 12,910,019 256,558 54,452,418
</TABLE>

56
<PAGE> 131
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 1999
- --------------------------------------------------------------------------------

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.

<TABLE>
<CAPTION>
NUMBER OF
GOVERNMENT CONTRACTS
- ------------------------------------------------------------------------
<S> <C>
Outstanding at December 31, 1998............................ 154
Futures Opened.............................................. 1,185
Futures Closed.............................................. (1,258)
------
Outstanding at December 31, 1999............................ 81
======
</TABLE>

The futures contracts outstanding at December 31, 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--March 2000
(Current notional value of $90,938 per contract)..... 68 (202,406)
SHORT CONTRACTS
10-year U.S. Treasury Notes--March 2000
(Current notional value of $95,844 per contract)..... 13 18,602
--- --------
81 (183,804)
=== ========
</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

57
<PAGE> 132
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 1999
- --------------------------------------------------------------------------------

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.
The forward currency contracts outstanding as of December 31, 1999 are as
follows:

<TABLE>
<CAPTION>
UNREALIZED
CURRENT APPRECIATION/
DESCRIPTION VALUE DEPRECIATION
- ------------------------------------------------------------------------------------------
<S> <C> <C>
GLOBAL EQUITY
SHORT CONTRACTS
Japanese Yen, 10,089,000 expiring 03/17/00................ $99,982 $ 18
======= ----
</TABLE>

6. BORROWINGS
In accordance with its investment policies, the Fund may borrow from banks for
temporary purposes and is subject to certain other customary restrictions.
Effective November 30, 1999, the Fund, in conjunction with certain other funds
of Van Kampen, has entered in to a $650,000,000 committed line of credit
facility with a group of banks which expires on November 28, 2000, but is
renewable with the consent of the participating banks. Each Fund is permitted to
utilize the facility in accordance with the restrictions of its prospectus. In
the event the demand for the facility meets or exceeds $650 million on a
complex-wide basis, each Fund will be limited to its pro-rata percentage based
on the net assets of each participating fund. Interest on borrowings is charged
under the agreement at a rate of 0.50% above the federal funds rate per annum.
An annual commitment fee of 0.09% per annum is charged on the unused portion of
the credit facility, which each Fund incurs based on its pro-rata percentage of
quarterly net assets. The Portfolios did not borrow against the credit facility
during the period.

58
<PAGE> 133

REPORT OF INDEPENDENT ACCOUNTANTS

To the Shareholders and Board of Trustees of the Van Kampen Life Investment
Trust--Asset Allocation Portfolio, Domestic Income Portfolio, Global Equity
Portfolio, Government Portfolio, and Money Market Portfolio:

In our opinion, the accompanying statements of assets and liabilities, including
the portfolios of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Asset Allocation Portfolio,
Domestic Income Portfolio, Global Equity Portfolio, Government Portfolio, and
Money Market Portfolio (each a portfolio of Van Kampen Life Investment Trust,
collectively referred to as the "Portfolios") at December 31, 1999, and the
results of each of their operations, the changes in each of their net assets and
the financial highlights for each of the periods presented, in conformity with
accounting principles generally accepted in the United States. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Portfolios' management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with auditing standards generally accepted in the United States, which require
that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included confirmation
of securities at December 31, 1999 by correspondence with the custodian and
brokers, provide a reasonable basis for the opinion expressed above.
PRICEWATERHOUSECOOPERS LLP
Chicago, Illinois
February 11, 2000

59
<PAGE> 134

VAN KAMPEN FUNDS

GROWTH
Aggressive Growth*
American Value*
Emerging Growth
Enterprise
Equity Growth
Focus Equity
Growth
Mid Cap Growth
Pace
Small Cap Value
Technology

GROWTH AND INCOME
Comstock
Equity Income
Growth and Income
Harbor
Real Estate Securities
Utility
Value

INCOME
Corporate Bond
Government Securities
High Income Corporate Bond
High Yield
High Yield & Total Return
Limited Maturity Government
U.S. Government
U.S. Government Trust for Income

CAPITAL PRESERVATION
Reserve
Tax Free Money

SENIOR LOAN
Prime Rate Income Trust
Senior Floating Rate

To view a current Van Kampen fund
prospectus or to receive additional
fund information, choose from one of
the following:

- - visit our Web site at
WWW.VANKAMPEN.COM--to view a prospectus, select Download Prospectus

- - call us at 1-800-341-2911 weekdays from 7:00 a.m. to 7:00 p.m. Central time.
Telecommunications Device for the Deaf users, call 1-800-421-2833.

- - e-mail us by visiting
WWW.VANKAMPEN.COM and
selecting Contact Us

* Closed to new investors
** Open to new investors for a limited time

60
<PAGE> 135

VAN KAMPEN LIFE INVESTMENT TRUST

BOARD OF TRUSTEES

J. MILES BRANAGAN

JERRY D. CHOATE

LINDA HUTTON HEAGY

R. CRAIG KENNEDY

MITCHELL M. MERIN*

JACK E. NELSON

RICHARD F. POWERS, III*

PHILLIP B. ROONEY

FERNANDO SISTO

WAYNE W. WHALEN* - Chairman

SUZANNE H. WOOLSEY, PH.D.

PAUL G. YOVOVICH

OFFICERS

RICHARD F. POWERS, III*
President

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

A. THOMAS SMITH III*
Vice President and Secretary

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

STEPHEN L. BOYD*

PETER W. HEGEL*

MICHAEL H. SANTO*

EDWARD C. WOOD, III*
Vice Presidents

INVESTMENT ADVISER

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

For federal income tax purposes, the following information is furnished with
respect to the distributions paid by Asset Allocation and Global Equity during
its taxable year ended December 31, 1999. Asset Allocation and Global Equity
designated and paid $4,997,426 and $44,835, respectively, as a 20% rate gain
distribution.

The following represents the percentage of 1999 income distributions paid by the
designated fund which qualify for the 70% dividends received deduction for
corporations:

<TABLE>
<S> <C>
Asset Allocation Portfolio.................. 23.06%
Domestic Income Portfolio................... 2.42%
Global Equity Portfolio..................... 100.00%
</TABLE>

61
<PAGE> 136

RESULTS OF SHAREHOLDER VOTES

<TABLE>
<CAPTION>
Asset Domestic Global Money
# of Shares Allocation Income Equity Government Market
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1) With regard to the election of the following trustees by shareholders:
J. Miles Branagan
In Favor..................................... 4,380,131 2,096,777 231,132 6,098,585 31,552,251
Withheld..................................... 50,467 15,843 7,337 79,427 258,396
Jerry D. Choate
In Favor..................................... 4,380,131 2,099,418 231,132 6,098,585 31,541,054
Withheld..................................... 50,467 13,201 7,337 79,427 269,593
Linda Hutton Heagy
In Favor..................................... 4,380,131 2,100,852 231,132 6,098,585 31,552,251
Withheld..................................... 50,467 11,768 7,337 79,427 258,396
R. Craig Kennedy
In Favor..................................... 4,380,131 2,100,852 231,132 6,098,585 31,552,251
Withheld..................................... 50,467 11,768 7,337 79,427 258,396
Mitchell M. Merin
In Favor..................................... 4,380,131 2,100,852 231,132 6,098,585 31,552,251
Withheld..................................... 50,467 11,768 7,337 79,427 258,396
Jack E. Nelson
In Favor..................................... 4,380,131 2,051,777 231,132 6,098,585 31,552,251
Withheld..................................... 50,467 60,842 7,337 79,427 258,396
Richard F. Powers, III
In Favor..................................... 4,378,083 2,100,852 231,132 6,098,585 31,552,251
Withheld..................................... 52,515 11,768 7,337 79,427 258,396
Philip B. Rooney
In Favor..................................... 4,380,131 2,100,852 231,132 6,096,052 31,552,251
Withheld..................................... 50,467 11,768 7,337 81,961 258,396
Fernando Sisto
In Favor..................................... 4,380,131 2,051,777 231,132 6,096,052 31,552,251
Withheld..................................... 50,467 60,842 7,337 81,961 258,396
Wayne W. Whalen
In Favor..................................... 4,380,131 2,051,777 231,132 6,098,585 31,516,758
Withheld..................................... 50,467 60,842 7,337 79,427 293,889
Suzanne H. Woolsey
In Favor..................................... 4,380,131 2,099,418 231,132 6,098,585 31,541,054
Withheld..................................... 50,467 13,201 7,337 79,427 269,593
Paul G. Yovovich
In Favor..................................... 4,380,131 2,100,431 231,132 6,098,585 31,552,251
Withheld..................................... 50,467 12,188 7,337 79,427 258,396
2) With regard to the ratification of PricewaterhouseCoopers LLP to
act as independent public accountants for the Portfolio:
In Favor..................................... 4,364,077 2,043,759 238,469 5,916,420 30,745,838
Against...................................... 9,579 25,447 -- 23,045 229,694
Abstaining................................... 56,941 43,413 -- 238,547 835,114
</TABLE>

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YEAR 2000 UPDATE

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VAN KAMPEN FUNDS

YOUR NOTES: