<TABLE>
<CAPTION>
Table of Contents
<S> <C>
Letter to Shareholders ................ 1
Portfolio of Investments ............. 4
Statement of Assets and Liabilities ... 6
Statement of Operations .............. 7
Statement of Changes in Net Assets .... 8
Financial Highlights ................. 9
Notes to Financial Statements ......... 10
Independent Auditors' Report ......... 13
</TABLE>
Letter to Shareholders
August 3, 1995
Dear Shareholder:
During the fiscal year ended June 30, 1995, the Van Kampen Merritt Tax Free
Money Fund continued to benefit from relatively high short-term interest rates
and low inflation. As a result, the Fund was able to provide shareholders with
attractive returns, and a high degree of safety and liquidity.
[PHOTO]
Dennis J. McDonnell and Don G. Powell
Economic Overview
Due in large part to the Federal Reserve Board's efforts to tighten monetary
supply in 1994, the economy has slowed significantly this year. Evidence of
this guided slowdown was reflected in the gross domestic product for the
second quarter, which grew at an annual rate of 0.5 percent, substantially
slower than its first quarter rate of 2.7 percent and fourth quarter 1994 rate
of 5.1 percent. While other key economic data, including unemployment rates
and housing starts, have shown mixed signs during recent weeks, the general
trend for the first half of the year suggested a "soft landing" scenario.
Subsequently, concern over inflation has subsided, as its annualized rate has
run at a modest pace of 3.2 percent year-to-date.
In response to the slower economy, the Fed cut short-term interest rates by
0.25 percent on July 6, 1995, officially reversing a trend of sharply higher
interest rates during the past year. Investors had anticipated such a move for
months, driving down the yields on money market instruments while boosting stock
and bond prices. Still, short-term interest rates remain competitive in relation
to inflation. Yields on tax-free money market securities have moved in concert
with taxable securities, subject to seasonal fluctuations that take place each
year.
Performance Summary
On June 30, 1995, the Fund generated a seven-day average yield of 3.22
percent<F1> and a one-year total return of 2.73 percent<F2>. In comparison,
the average performance for tax-free money market funds, as calculated by
Lipper Analytical Services, Inc., was 3.04 percent.
Since income from the Fund is exempt from federal income tax, it is important
to compare its effective annual yield of 3.27 percent to an equivalent taxable
rate. For example, if you were in the 36 percent marginal federal tax bracket,
then you would have needed a taxable equivalent rate of 5.11 percent to equal
the tax-free effective annual yield of the Van Kampen Merritt Tax Free Money
Fund.
In keeping with the Fund's disciplined investment approach, we continued to
focus on only the highest quality securities including short-term obligations of
the U.S. government, municipalities and top-tier corporations. The Fund's
portfolio composition for the period is further illustrated by the chart on the
following page.
(Continued on page two)
1
[PIE CHART]
Portfolio Holdings by Investment Type as of June 30, 1995
Bonds/Notes 27.1%
Updates (Commercial Paper) 19.1%
Dates 13.2%
7-Day Floaters 40.6%
Outlook
We believe that the Fed will move cautiously before lowering interest rates
again, waiting for further signs that the economy has settled into a slow growth
pattern. We anticipate that the economy will grow at an annual rate between 2
and 3 percent in the second half of the year, and that inflation will grow at an
annualized rate between 3.3 and 3.5 percent. Based upon this generally slow
growth and low inflation outlook, we believe that market forces will exert a
downward pressure on interest rates. As a result, the Fund will continue to
emphasize securities with longer maturities in order to lock in higher yields.
During recent months, debate over tax reform has dominated the agenda in
Washington. There has been varied speculation about the impact of reform, which
may have caused you to wonder how it might affect your investment goals. At this
point, no one knows for sure what will happen or when it might actually take
place. As various proposals come to the forefront, there will be short-term
market fluctuations, just as we saw during the debate over the U.S. health care
system. We will continue to keep a close watch over any new developments and
evaluate the potential impact that they may have on your investments.
Corporate News
Along with your Fund's shareholder report, we are pleased to introduce a new
shareholder publication called Your Portfolio. The purpose of this publication
is to provide you with additional information about your mutual fund investment,
as well as offer helpful insights regarding long-term investment strategies and
trends in the marketplace. The publication will be mailed twice a year with your
June and December shareholder reports. This premier issue focuses on our various
shareholder services and privileges designed to make mutual fund investing
easier for you.
We appreciate your continued confidence in your investment with Van Kampen
American Capital, and we look forward to communicating with you again regarding
the performance of your Fund.
Sincerely,
Don G. Powell Dennis J. McDonnell
Chairman President
Van Kampen American Capital Van Kampen American Capital
Investment Advisory Corp. Investment Advisory Corp.
2 Please see footnotes on page three
Van Kampen Merritt Tax Free Money Fund
(Quotron Symbol-VTFXX)
There is no assurance that the Fund will be able to maintain a stable net asset
value of $1.00 per share. Shares of the Fund are neither insured nor guaranteed
by the U.S. Government.
Past performance does not guarantee future results. Investment return and net
asset value will fluctuate with market conditions. Fund shares, when redeemed,
may be worth more or less than their original cost.
This report is intended for shareholders of the Fund and may not be used as
sales literature with prospective investors unless it is preceded or accompanied
by the Fund's current prospectus which gives more complete information about
charges and expenses, investment objectives and operating policies. Prospective
investors should read the prospectus carefully before investing or sending
money.
[FN]
<F1>Had certain expenses of the Fund not been assumed by the Adviser, the
Fund's seven-day yield would have been 2.72% and the total return would have
been lower.
<F2>One-year total return assumes reinvestment of all distributions for the
period ended June 30, 1995.
3
<TABLE>
Portfolio of Investments
June 30, 1995
<CAPTION>
Discount
Par Yield on
Amount Maturity Date of Amortized
(000) Security Description Date Purchase Cost
<S> <C> <C> <C> <C>
Municipal Bonds
Dates 13.6%
$ 200 Chicago, IL O'Hare Intl Arpt Special Fac Rev
Ser 1983 C (LOC: Sanwa Bank) .............................. 07/03/95 4.600% $ 200,000
500 Chicago, IL O'Hare Intl Arpt Special Fac Rev
Ser 1983 D (LOC: Sanwa Bank) .............................. 07/03/95 4.600 500,000
400 Louisiana St Recovery Dist Sales Tax Rev
Ser 1988 (FGIC Insured) ................................... 07/03/95 4.350 400,000
300 New York City Ser B (FGIC Insured) ....................... 07/03/95 4.500 300,000
200 North AL Environmental Impt Auth Pollutn Ctl Rev
(LOC: Bank of Nova Scotia) ................................ 07/03/95 4.350 200,000
900 Peninsula Ports Auth VA Port Fac Rev Ser 1987 Rfdg
(Gtd: Shell Oil Company) ................................. 07/03/95 4.150 900,000
500 Pinal Cnty, AZ Indl Dev Auth Pollutn Ctl Rev
Ser 1984 (LOC: Nat'l Westminster Bank) ................... 07/03/95 4.200 500,000
1,500 Sullivan Cnty, TN Indl Dev Pollutn Ctl Rev
Ser 1986 (LOC: Union Bank of Switzerland) ................. 07/03/95 4.350 1,500,000
---------
Total Dates .............................................................. 4,500,000
---------
7 Day Floaters 41.7%
1,200 Washington St Hsg Fin Comm Multi-Family Mtg Rev
Rfdg (LOC: Harris Trust & Savings Bank) ..................... 07/04/95 3.800 1,200,000
1,400 City of Chillicothe, IA Pollutn Ctl Rev Ser 1993 A
Rfdg (Gtd: Midwest Power Systems Inc.) ..................... 07/05/95 4.000 1,400,000
1,500 City of Salix, IA Pollutn Ctl Rev Ser 1993 Rfdg
(Gtd: Midwest Power Systems Inc.) .......................... 07/05/95 4.000 1,500,000
1,110 Fort Bend, TX Indl Dev Rev Rfdg
(Gtd: W.W. Grainger, Inc.) ................................. 07/05/95 4.150 1,110,000
1,000 Illinois Dev Fin Auth Rev Roosevelt Univ Ser 1995
(LOC: American Nat'l Bank & Trust of Chicago) .............. 07/05/95 4.250 1,000,000
1,100 Illinois Dev Fin Auth Rev Ser 1994 Lake Forest
Academy (LOC: The Northern Trust Company) ................... 07/05/95 4.150 1,100,000
1,500 Iowa Hsg Fin Auth Small Bus Ln Proj Ser 85-A
(LOC: Federal Home Loan Bank of Des Moines) ................. 07/05/95 4.150 1,500,000
1,200 St Paul, MN Hsg & Redev Auth Rev Ser 1985 A
(LOC: Federal Home Loan Bank of Des Moines) ................. 07/05/95 4.150 1,200,000
1,150 Calhoun Cnty, MI Econ Dev Corp Rev
(LOC: Comerica Bank) ....................................... 07/06/95 4.100 1,150,000
970 City of Sterling Heights, MI Econ Dev Corp Rev
Rfdg (LOC: NBD Bank N.A.) .................................. 07/06/95 4.300 970,000
708 Georgia Muni Assoc Pool Certificates of Part
Ser 1990 (MBIA Insured) ..................................... 07/06/95 4.000 707,919
1,000 Minnesota St Higher Ed Ser 1995 A Rfdg (Gtd:
Minnesota Higher Education Coordinating Board) ............... 07/06/95 4.050 1,000,000
---------
Total 7 Day Floaters .......................................................... 13,837,919
---------
</TABLE>
4 See Notes to Financial Statements
<TABLE>
Portfolio of Investments (Continued)
June 30, 1995
<CAPTION>
Discount
Par Yield on
Amount Maturity Date of Amortized
(000) Security Description Date Purchase Cost
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Updates (Commercial Paper) 19.6%
$ 1,000 West Orange Mem Hosp Tax Dist Rev
Subser 1991 A-2 (LOC: Societe Generale) ......... 07/03/95 3.400% $ 1,000,000
500 West Orange Mem Hosp Tax Dist Rev
Subser 1991 A-1 (LOC: Societe Generale) ......... 07/05/95 3.400 500,000
1,000 Sweetwater Cnty, WY Customized Purchase
Pollutn Ctl Rev Ser 1988 A Rfdg
(LOC: Union Bank of Switzerland) ............... 07/14/95 4.100 1,000,000
1,500 York Cnty, SC Pollutn Ctl Rev Ser 1990
(Gtd: Duke Power Co.) .......................... 09/08/95 4.150 1,500,000
1,500 Texas A & M Univ Sys Rev Ser B
(Gtd: Texas A & M University System) ............ 09/12/95 4.200 1,500,000
1,000 Wayne Cnty, MI Downriver Sewage Disp Sys
(LOC: Comerica Bank) ........................... 09/25/95 4.300 999,882
---------
Total Updates (Commercial Paper) .................................. 6,499,882
---------
Bonds/Notes 27.8%
1,000 State of Utah GO Bldg & Hwy Bds Ser 92 .......... 07/01/95 4.500 1,000,000
1,500 Maricopa Cnty, AZ Washington Elementary Sch
District No 6 Ser 1994 B Tax Anticipation Nts ... 07/28/95 5.000 1,500,814
790 City of Ashdown, AR Indl Dev Rev Ser 1981
(Gtd: Allied Signal Corp.) ...................... 11/01/95 4.300 790,000
910 Philadelphia, PA Indl Dev Pollutn Ctl Rev
Ser 1981 (Gtd: Allied Signal Corp.) .............. 11/01/95 4.300 910,000
1,000 Du Page Cnty, IL Motor Fuel Tax Rev Ser 95
(FSA Insured) ................................... 01/01/96 4.400 1,000,000
1,020 Elkhart, IN Cmnty Sch GO Ser 1995 Rfdg
(FGIC Insured) .................................. 01/15/96 4.400 1,020,000
985 Middleton-Cross Plains Area Sch Dist
(FGIC Insured) .................................. 04/01/96 4.850 989,634
1,000 Idaho St Tax Anticipation Nts .................... 06/27/96 4.500 1,006,580
1,000 City of Chicago GO Tender Notes Ser 1995 A
(LOC: Morgan Guaranty & Trust Co.) ............... 10/31/96 4.600 1,000,000
---------
Total Bonds/Notes ........................................................... 9,217,028
---------
Total Investments 102.7% <F1> .............................................. 34,054,829
Liabilities in Excess of Other Assets (2.7%) ............................... (879,789)
----------
Net Assets 100.0% ......................................................... $ 33,175,040
----------
<FN>
<F1> At June 30, 1995, cost is identical for both book and federal income tax purposes.
</TABLE>
5 See Notes to Financial Statements
<TABLE>
Statement of Assets and Liabilities
June 30, 1995
<CAPTION>
<S> <C>
Assets:
Investments, at Amortized Cost which Approximates Market (Note 1) ........................ $ 34,054,829
Cash .................................................................................... 87,339
Receivables:
Interest ............................................................................... 223,359
Fund Shares Sold ....................................................................... 11,924
Other ................................................................................... 5,064
----------
Total Assets ........................................................................... 34,382,515
----------
Liabilities:
Payables:
Investments Purchased .................................................................. 1,006,580
Fund Shares Repurchased ............................................................... 29,428
Income Distributions .................................................................. 21,758
Investment Advisory Fee (Note 2) ...................................................... 6,443
Accrued Expenses ......................................................................... 143,266
----------
Total Liabilities ...................................................................... 1,207,475
----------
Net Assets ............................................................................... $ 33,175,040
----------
Net Assets Consist of:
Paid in Surplus (Note 3) ............................................................... $ 33,199,618
Accumulated Net Realized Loss on Investments ............................................. (24,578)
----------
Net Assets (Equivalent to $1.00 per share for 33,199,618 shares outstanding) (Note 3) ... $ 33,175,040
----------
</TABLE>
6 See Notes to Financial Statements
<TABLE>
Statement of Operations
For the Year Ended June 30, 1995
<CAPTION>
<S> <C>
Investment Income:
Interest .......................................... $ 1,252,454
-------------
Expenses:
Investment Advisory Fee (Note 2) ................. 175,190
Shareholder Services ............................. 83,036
Distribution (12b-1) and Service Fees (Note 4) ... 81,152
Printing ......................................... 44,931
Audit ............................................ 31,025
Custody .......................................... 18,600
Trustees Fees and Expenses (Note 2) ............... 18,243
Legal (Note 2) ................................... 15,710
Other ............................................ 14,343
-------------
Total Expenses .................................. 482,230
Less Fees Waived ............................... 168,747
-------------
Net Expenses ...................................... 313,483
-------------
Net Investment Income ............................. $ 938,971
-------------
Realized Gain/Loss on Investments:
Proceeds from Sales ............................... $ 123,123,329
Cost of Securities Sold ........................... (123,123,329)
-------------
Net Realized Gain on Investments ................. $ -0-
-------------
Net Increase in Net Assets from Operations ....... $ 938,971
-------------
</TABLE>
7 See Notes to Financial Statements
<TABLE>
Statement of Changes in Net Assets
For the Years Ended June 30, 1995 and 1994
<CAPTION>
Year Ended Year Ended
June 30, 1995 June 30, 1994
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
From Investment Activities:
Operations:
Net Investment Income ............................................ $ 938,971 $ 678,256
Net Realized Gain on Investments ................................. -0- 1,863
------------- --------------
Change in Net Assets from Operations ............................ 938,971 680,119
Distributions from Net Investment Income ....................... (938,971) (678,256)
------------- --------------
Net Change in Net Assets from Investment Activities ............. -0- 1,863
------------- --------------
From Capital Transactions (Note 3):
Proceeds from Shares Sold ....................................... 23,885,907 33,501,857
Net Asset Value of Shares Issued Through Dividend Reinvestment ... 685,467 484,657
Cost of Shares Repurchased ....................................... (28,779,907) (39,734,622)
------------- --------------
Net Change in Net Assets from Capital Transactions .............. (4,208,533) (5,748,108)
------------- --------------
Total Decrease in Net Assets ..................................... (4,208,533) (5,746,245)
Net Assets:
Beginning of the Period ......................................... 37,383,573 43,129,818
------------- --------------
End of the Period ................................................ $ 33,175,040 $ 37,383,573
------------- --------------
</TABLE>
8 See Notes to Financial Statements
<TABLE>
Financial Highlights
The following schedule presents financial highlights for one share
of the Fund outstanding throughout the periods indicated.
<CAPTION>
Year Ended June 30
1995 1994 1993 1992 1991
-----------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------
Net Investment Income .............................. .027 .017 .019 .035 .052
Less Distributions from
Net Investment Income .............................. .027 .017 .019 .035 .052
------ ------ ------ ------ ------
Net Asset Value, End of Period ..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------
Total Return* (Non-Annualized) .................... 2.73% 1.70% 1.93% 3.56% 5.29%
Net Assets at End of Period
(In millions) ..................................... $ 33.2 $ 37.4 $ 43.1 $ 70.8 $ 81.5
Ratio of Expenses to Average Net
Assets* (Annualized) .............................. .89% .81% .72% .57% .56%
Ratio of Net Investment Income to
Average Net Assets* (Annualized) ................... 2.68% 1.69% 1.92% 3.56% 5.01%
* If certain expenses had not been assumed by the
Adviser, total return would have been lower and the
ratios would have been as follows:
Ratio of Expenses to Average Net
Assets (Annualized) ................................ 1.38% 1.29% .97% 1.18% 1.20%
Ratio of Net Investment Income to
Average Net Assets (Annualized) ................... 2.20% 1.20% 1.67% 2.96% 4.37%
</TABLE>
9 See Notes to Financial Statements
Notes to Financial Statements
June 30, 1995
1. Significant Accounting Policies
Van Kampen Merritt Tax Free Money Fund (the "Fund") was organized as an
unincorporated Massachusetts business trust on June 16, 1986. The Fund is an
open-end diversified management investment company registered under the
Investment Company Act of 1940, as amended. The Fund commenced investment
operations on November 5, 1986.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements.
A. Security Valuation-Investments are valued at amortized cost, which
approximates market. Under this valuation method, a portfolio instrument is
valued at cost and any discount or premium is amortized on a straight-line basis
to the maturity of the instrument.
B. Security Transactions-Security transactions are recorded on a trade date
basis. Realized gains and losses are determined on an identified cost basis.
Interest income is recorded on an accrual basis.
C. Federal Income Taxes-It is the Fund's policy to comply with the requirements
of the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income, if any, to its shareholders.
Therefore, no provision for federal income taxes is required.
The Fund intends to utilize provisions of the federal income tax laws which
allow it to carry a realized capital loss forward for eight years following the
year of the loss and offset such losses against any future realized capital
gains. At June 30, 1995, the Fund had an accumulated capital loss carryforward
of $24,578. Of this amount, $6,277, $4,541 and $13,760 will expire on June 30,
1998, 1999 and 2001, respectively. 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.
D. Distribution of Income and Gains-The Fund declares dividends from net
investment income daily and automatically reinvests such dividends daily. Net
realized gains, if any, are distributed annually. Shareholders can elect to
receive the cash equivalent of their daily dividends at each month end.
10
Notes to Financial Statements (Continued)
June 30, 1995
2. Investment Advisory Fees and Other Transactions with Affiliates
Under the terms of the Fund's Investment Advisory Agreement, Van Kampen American
Capital Investment Advisory Corp. (the "Adviser") will provide investment advice
and facilities to the Fund for an annual fee payable monthly as follows:
<TABLE>
<CAPTION>
Average Net Assets % Per Annum
<S> <C>
First $500 million ... .500 of 1%
Next $500 million .... .475 of 1%
Next $500 million .... .425 of 1%
Over $1.5 billion ... .375 of 1%
</TABLE>
Certain legal expenses are paid to Skadden, Arps, Slate, Meagher & Flom,
counsel to the Fund, of which a trustee of the Fund is an affiliated person.
For the year ended June 30, 1995, the Fund recognized expenses of
approximately $27,100 representing Van Kampen American Capital Distributors,
Inc's. or its affiliates' (collectively "VKAC") cost of providing accounting,
legal and certain shareholder services to the Fund.
Certain officers and trustees of the Fund are also officers and directors of
VKAC. The Fund does not compensate its officers or trustees who are officers of
VKAC.
The Fund has implemented deferred compensation and retirement plans for its
trustees. Under the deferred compensation plan, trustees may elect to defer all
or a portion of their compensation to a later date. The retirement plan covers
those trustees who are not officers of VKAC. The Fund's liability under the
deferred compensation and retirement plans at June 30, 1995, was approximately
$22,100.
11
Notes to Financial Statements (Continued)
June 30, 1995
3. Capital Transactions
The Fund is authorized to issue an unlimited number of shares of beneficial
interest without par value. At June 30, 1995 and 1994, paid in surplus
aggregated $33,199,618 and $37,408,151, respectively. Transactions in shares
were as follows:
<TABLE>
<CAPTION>
Year Ended Year Ended
June 30, 1995 June 30, 1994
- -------------------------------------------------------
<S> <C> <C>
Beginning Shares ........ 37,408,151 43,156,259
----------- -----------
Shares Sold ............ 23,885,907 33,501,857
Shares Issued Through
Dividend Reinvestment ... 685,467 484,657
Shares Repurchased ...... (28,779,907) (39,734,622)
----------- -----------
Net Change in Shares
Outstanding ............. (4,208,533) (5,748,108)
----------- -----------
Ending Shares .......... 33,199,618 37,408,151
----------- -----------
</TABLE>
4. Distribution and Service Plans
The Fund and its shareholders have adopted a distribution plan (the
"Distribution Plan") pursuant to Rule 12b-1 under the Investment Company Act of
1940 and a service plan (the "Service Plan," collectively the "Plans"). The
Plans govern payments for the distribution of the Fund's shares, ongoing
shareholder services and maintenance of shareholder accounts. Annual fees under
the Plans of up to .25% of the Fund's average net assets are accrued daily.
12
Independent Auditors' Report
The Board of Trustees and Shareholders of
Van Kampen Merritt Tax Free Money Fund:
We have audited the accompanying statement of assets and liabilities of Van
Kampen Merritt Tax Free Money Fund (the "Fund"), including the portfolio of
investments, as of June 30, 1995, and the related statement of operations for
the year then ended, the statement of changes in net assets for each of the two
years in the period then ended, and the financial highlights for each of the
periods presented. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of June
30, 1995, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Van
Kampen Merritt Tax Free Money Fund as of June 30, 1995, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the periods presented, in conformity with generally accepted accounting
principles.
KPMG Peat Marwick LLP
Chicago, Illinois
August 3, 1995
13
Funds Distributed by Van Kampen American Capital
GLOBAL AND INTERNATIONAL
Global Equity Fund
Global Government Securities Fund
Global Managed Assets Fund
Short-Term Global Income Fund
Strategic Income Fund
EQUITY
Growth
Emerging Growth Fund
Enterprise Fund
Pace Fund
Growth & Income
Balanced Fund
Comstock Fund
Equity Income Fund
Growth and Income Fund
Harbor Fund
Real Estate Securities Fund
Utility Fund
FIXED INCOME
Corporate Bond Fund
Government Securities Fund
High Income Corporate Bond Fund
High Yield Fund
Limited Maturity Government Fund
Prime Rate Income Trust
Reserve Fund
U.S. Government Fund
U.S. Government Trust for Income
TAX-FREE
California Insured Tax Free Fund
Florida Insured Tax Free
Income Fund
High Yield Municipal Fund
Insured Tax Free Income Fund
Limited Term Municipal
Income Fund
Municipal Income Fund
New Jersey Tax Free Income Fund
New York Tax Free Income Fund
Pennsylvania Tax Free Income Fund
Tax Free High Income Fund
Tax Free Money Fund
Texas Tax Free Income Fund
THE GOVETT FUNDS
Emerging Markets Fund
Global Government Income Fund
International Equity Fund
Latin America Fund
Pacific Strategy Fund
Smaller Companies Fund
Ask your investment representative for a prospectus containing more complete
information, including sales charges and expenses. Please read it carefully
before you invest or send money. Or call us direct at 1-800-421-5666 weekdays
from 7:00 a.m. to 7:00 p.m. Central time.
14
Van Kampen Merritt Tax Free Money Fund
Board of Trustees
Philip P. Gaughan
R. Craig Kennedy
Dennis J. McDonnell*
Donald C. Miller - Chairman
Jack E. Nelson
Jerome L. Robinson*
Wayne W. Whalen*
Officers
Dennis J. McDonnell*
President
Ronald A. Nyberg*
Vice President and Secretary
Edward C. Wood, III*
Vice President and Treasurer
Peter W. Hegel*
Vice President
John L. Sullivan*
Controller
Nicholas Dalmaso*
Scott E. Martin*
Weston B. Wetherell*
Assistant Secretaries
Steven M. Hill*
Assistant Treasurer
Investment Adviser
Van Kampen American Capital
Investment Advisory Corp.
One Parkview Plaza
Oakbrook Terrace, Illinois 60181
Distributor
Van Kampen American Capital
Distributors, Inc.
One Parkview Plaza
Oakbrook Terrace, Illinois 60181
Transfer Agent (Effective July 10, 1995)
ACCESS Investor
Services, Inc.
P.O. Box 418256
Kansas City, Missouri 64141-9256
Custodian
State Street Bank
and Trust Company
225 Franklin Street
P.O. Box 1713
Boston, Massachusetts 02105
Legal Counsel
Skadden, Arps, Slate,
Meagher & Flom
333 West Wacker Drive
Chicago, Illinois 60606
Independent Auditors
KPMG Peat Marwick LLP
Peat Marwick Plaza
303 East Wacker Drive
Chicago, Illinois 60601
*"Interested" persons of the Fund, as defined in the Investment Company Act of
1940.
(C)Van Kampen American Capital Distributors, Inc., 1995 All rights reserved.
SM denotes a service mark of Van Kampen American Capital Distributors, Inc.
This report is submitted for the general information of the shareholders of the
Fund. It is not authorized for distribution to prospective investors unless it
has been preceded or is accompanied by an effective prospectus of the Fund which
contains additional information on how to purchase shares, the sales charge, and
other pertinent data.
15
Van Kampen Merritt Tax Free Money Fund
This Page Intentionally Left Blank
16
