<PAGE>
Van Kampen American Capital
GLOBAL GOVERNMENT
SECURITIES
SEMI-ANNUAL REPORT
NOVEMBER 30, 1997
[ARTWORK]
--A Wealth of Knowledge . A Knowledge of Wealth--
VAN KAMPEN AMERICAN CAPITAL
<PAGE>
<TABLE>
<CAPTION>
Table of Contents
<S> <C>
Letter to Shareholders.............................. 1
Performance Results................................. 3
Portfolio Management Review......................... 4
Portfolio of Investments............................ 7
Statement of Assets and Liabilities................. 8
Statement of Operations............................. 9
Statement of Changes in Net Assets.................. 10
Financial Highlights................................ 11
Notes to Financial Statements....................... 14
</TABLE>
<PAGE>
Letter to Shareholders
January 5, 1998
Dear Shareholder,
On August 4, 1997, the announcement of exchange privileges between Van
Kampen American Capital and Morgan Stanley funds opened the door to even greater
investment opportunities. We are proud to offer an expanded family of mutual
funds covering virtually every market and continent. In our view, the rapid
appreciation of U.S. stock prices in recent years has created a need for
investors to examine their portfolios carefully to ensure proper diversification
among domestic and foreign investments. The Morgan Stanley funds, with their
emphasis on global markets, can be valuable tools for accomplishing this
diversification.
Economic Overview
After years of breakneck growth and rapid expansion of credit, Asia
experienced a rare economic setback during the reporting period. The region's
problems first became evident in July, when Thailand responded to a growing
deficit in its current account (the broadest measure of a country's trade in
goods and services) by devaluing its currency by nearly 40 percent. The Thai
government's move set in motion a chain reaction of devaluations in other
countries, which ultimately severed much of the region's traditional currency
link to the U.S. dollar. At the height of the crisis in October, the Hong Kong
dollar, pegged to the American dollar since 1983, came under attack by
speculators.
While Hong Kong officials ultimately used their large reserves to defend
the currency and retain the U.S. dollar peg, Asia's turmoil was far from
finished. The crisis next spread to South Korea, where that country's ailing
financial sector required a massive infusion of liquidity from the International
Monetary Fund to stave off widespread bankruptcies. As the reporting period
ended, IMF and Korean officials were negotiating the precise terms and amount of
the bailout.
Compared to Asia, economic conditions in Europe and the United States were
healthy and tranquil. Europe continued to enjoy solid economic growth with low
inflation. The relatively tight fiscal policies required to accomplish a move to
a single currency, however, have left Europe's unemployment rate in double
digits.
Strong growth, low inflation and robust job creation continued to
characterize the U.S. economic environment during the reporting period. The
nation's output of goods and services grew at its fastest pace in nine years
during the first quarter before slowing only modestly in the subsequent six
months. Meanwhile, unemployment fell to 4.6 percent of the workforce in
November, its lowest level since October 1973.
Despite the thriving labor market and the rapid pace of economic activity,
there was little evidence of inflation. Wholesale prices actually fell during
each of the first seven months of 1997, the
Picture of
Dennis J. McDonnell and Don G. Powell
1
Continued on page two
<PAGE>
longest stretch of consecutive monthly declines in history. At the consumer
level, prices increased by 1.8 percent over the 12 months through November.
Several factors contributed to keeping inflation in check. A strong rally
in the U.S. dollar helped limit price increases on imported goods. Also, a sharp
acceleration in productivity gains allowed employers to offset the cost of
higher worker salaries without significantly raising prices.
Market Review
The deflationary impact of the Asian economic crisis helped to keep
downward pressure on global interest rates, with long-term bond yields in the
United States and most of Europe closing the reporting period at levels ranging
from five percent and six percent. The widespread decline in bond yields helped
to offset the effects of the strong U.S. dollar. In the six months through
November, the J.P. Morgan Traded Government Bond Index gained 3.80 percent in
dollar terms. The top-performing government fixed-income market was the United
Kingdom, which gained 10.83 percent. Meanwhile, government bond markets in the
United States and Italy each climbed more than seven percent in dollar terms.
Outlook
We expect that the recent upheaval in Southeast Asia will have a generally
positive effect on global fixed-income investments. Reduced demand for American
goods in Asia will exert a mild drag on the U.S. economy in coming months. But
while corporate profits could suffer, slower economic growth would help to
mitigate the inflationary pressures caused by the strong domestic labor market.
This scenario is especially favorable for U.S. government bonds.
In Japan, interest rates have declined to levels that we believe
sufficiently discount a worsening of that country's already-tenuous economic
circumstances. We expect that European interest rates will remain generally
stable, as long-term bond yields in those countries participating in Monetary
Union have converged to nearly identical levels.
The return of significant volatility to global financial markets in recent
months is a reminder of the ongoing need to monitor your portfolio carefully for
proper diversification among asset classes. We urge our fund shareholders to use
this opportunity to consider how their holdings are currently divided among the
three major asset classes of stocks, bonds, and cash. Uneven moves in the
various markets can distort a carefully planned investment program. We encourage
you to review your portfolio with an eye toward correcting imbalances in the way
your assets are allocated.
Sincerely,
/s/Don G. Powell /s/ Dennis J. McDonnell
- -------------------------- -----------------------------
Don G. Powell Dennis J. McDonnell
Chairman President
Van Kampen American Capital Van Kampen America Capital
Asset Management, Inc. Asset Management, Inc.
2
<PAGE>
Performance Results for the Period Ended November 30, 1997
Van Kampen American Capital Global Government Securities Fund
<TABLE>
<CAPTION>
A Shares B Shares C Shares
<S> <C> <C> <C>
Total Returns
Six-month total return based on NAV/1/ 3.27% 2.71% 2.73%
Six month total return/2/ (1.65%) (1.28%) 1.74%
One-year total return/2/ (5.79%) (5.55%) (2.79%)
Five-year average annual total return/2/ 4.05% 4.06% N/A
Life-of-Fund average annual total return/2/ 3.63% 3.73% 3.40%
Commencement Date 11/15/91 11/15/91 04/12/93
Distribution Rate and Yield
Distribution rate/3/ 6.17% 5.66% 5.71%
SEC Yield/4/ 3.62% 3.04% 3.07%
</TABLE>
N/A-Not Applicable.
/1/Assumes reinvestment of all distributions for the period and does not include
payment of the maximum sales charge (4.75% for A shares) or contingent
deferred sales charge for early withdrawal (4% for B shares and 1% for C
shares).
/2/Standardized total return. Assumes reinvestment of all distributions for the
period and includes payment of the maximum sales charge (A shares) or
contingent deferred sales charge for early withdrawal (B and C shares).
/3/Distribution rate represents the monthly annualized distributions of the Fund
at the end of the period and not the earnings of the Fund.
/4/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 November 30, 1997.
See the Fund Performance section of the current prospectus. 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.
Market forecasts provided in this report may not necessarily come to pass.
3
<PAGE>
Portfolio Management Review
Van Kampen American Capital Global Government Securities Fund
The following is an interview with the management team of the Van Kampen
American Capital Global Government Securities Fund. As of April 1, 1997, the
Fund is managed by portfolio managers Michael B. Kushma, Robert M. Smith, J.
David Germany, and Paul F. O'Brien, Morgan Stanley Asset Management Inc.,
subadviser to the Fund.
[Q] How would you characterize the market conditions in which the Fund operated
during the six-month period ended November 30, 1997?
[A] During the reporting period, there were several prevailing trends in the
global marketplace:
. Bond yields in Europe fell to historically low levels as budget deficits
declined and inflation remained benign. Also, long-term interest rates
converged among nations considered candidates for participation in the
Monetary Union.
. The shaky status of Japan's financial system caused a "flight to quality"
among that country's investors. The resulting demand for Japanese
government bonds pushed long-term yields below two percent.
. The U.S. dollar appreciated against most major currencies. A strong
domestic economy attracted foreign money into U.S. capital markets while
encouraging American investors to keep funds at home. However, appreciation
in the greenback limited gains in dollar terms for overseas bond
investments. The following table displays dollar-based total returns for
government bond indices included among the J.P. Morgan Traded Government
Bond Index over the period ended November 30, 1997:
<TABLE>
Six months 12 months
---------- ---------
<S> <C> <C>
Australia.................................. -2.94% ....... -6.90%
Belgium.................................... 0.20% ....... -7.56%
Canada..................................... 3.54% ....... 2.19%
Denmark.................................... 1.04% ....... -4.66%
France..................................... 1.61% ....... -6.05%
Germany.................................... -0.24% ....... -7.94%
Italy...................................... 7.46% ....... -0.44%
Japan...................................... -3.31% ....... -5.89%
Netherlands................................ -0.13% ....... -8.07%
Spain...................................... 2.33% ....... -3.33%
Sweden..................................... 5.27% ....... -5.47%
United Kingdom............................. 10.83% ....... 12.39%
United States.............................. 7.05% ....... 7.84%
</TABLE>
4
<PAGE>
[Q] What significant investment techniques and strategies were used to pursue
the Fund's investment objective?
[A] Our investment strategy consists of a top-down asset allocation process in
which bond and currency exposure are analyzed and managed separately. The
Fund's country allocations, compared to the J. P. Morgan Global Traded
Government Index, were as follows:
. The Fund was significantly underweighted in Japan as low nominal and
inflation-adjusted interest rates limited potential for further price
appreciation.
. The Fund was fully weighted in American bonds as inflation-adjusted
interest rates in the United States remained at attractive levels.
. The Fund was neutral in its overall European weighting. Within Europe
itself, the Fund was overweighted in Denmark, Sweden, and the United
Kingdom. Each of these countries has chosen not to participate in the
European Monetary Union (EMU), thus creating an interest-rate premium. The
Fund compensated by underweighting positions in France, Belgium, and the
Netherlands.
. Australian bonds were added as the looming recession in Asia made it likely
that reduced imports will restrain growth among Pacific Rim neighbors.
[Q] How has the Fund performed during the reporting period?
[A] The Fund achieved a six-month total return of 3.27 percent/1/ (Class A
shares at net asset value) as of November 30, 1997. During the same period,
the J. P. Morgan Global Traded Government Index produced a total return of
3.80 percent. Please keep in mind that this is an unmanaged index comprised
of major foreign and U.S. government bonds, weighted by the total market
value of each country's securities. It reflects variations in currency
value with all results measured in U.S. dollar terms. Also, keep in mind
that it does not reflect any commissions or fees that would be paid by an
investor purchasing the securities it represents. Please refer to the chart
on page three for additional Fund performance results.
What is the outlook for the months ahead?
[A] The Fund's portfolio is structured to benefit from a convergence between
bond yields in Japan and those in the United States and Europe. We believe
that Japanese bonds remain relatively expensive, and are priced to reflect
a worsening of the already-grim economic conditions in that country. While
further deterioration is possible, we believe the greater likelihood is
that the worse-case scenario of widespread deflation will not occur,
causing Japanese bond yields to rise.
5
<PAGE>
Meanwhile, the outlook for interest rates is more balanced in the United
States and Europe. We anticipate that the United States economy will remain on
the solid growth, low-inflation path that has characterized its performance in
recent years. In this environment, we expect the U.S. dollar to retain most of
its recent gains and long-term yields to remain near current levels. Within
Europe, the Fund will continue to take advantage of the higher yields available
in countries not participating in the Monetary Union. We expect Denmark, Sweden,
and the United Kingdom to eventually participate in EMU, creating significant
appreciation in their bond prices.
/s/ Michael B. Kushma /s/ Robert M. Smith
- --------------------------- ---------------------------
Michael B. Kushma Robert M. Smith
Portfolio Manager Portfolio Manager
Morgan Stanley Asset Management Inc. Morgan Stanley Asset Management Inc.
/s/ J. David Germany /s/ Paul F. O'Brien
- --------------------------- ---------------------------
J. David Germany Paul F. O'Brien
Portfolio Manager Portfolio Manager
Morgan Stanley Asset Management Inc. Morgan Stanley Asset Management Inc.
6
<PAGE>
Portfolio of Investments
November 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
==========================================================================================
Par
Amount
(000) Description Coupon Maturity Market Value
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
United States Government & Government Agency Obligations 50.8%
$ 697 Government National Mortgage Association
Pools............................... 8.000% 03/15/01 to 12/15/25 $ 721,048
7,700 U.S. Treasury Bonds (a)............. 12.000 05/15/05 10,481,625
4,800 U.S. Treasury Bonds (a)............. 8.125 08/15/19 5,936,256
20,500 U.S. Treasury Notes (a)............. 9.125 05/15/99 21,444,845
-----------
Total Long-Term Investments
(Cost $37,884,544)...................................................... 38,583,774
-----------
Short-Term Investments 49.4%
United States Government & Government
Agency Obligations 48.7%
4,000 Federal Home Loan Bank Discount Note
(yielding 5.462%, 12/04/97 maturity)............................... 3,998,183
4,000 Federal Home Loan Bank Discount Note
(yielding 5.453%, 12/105/97 maturity).............................. 3,997,587
15,000 Federal Loan Mortgage Discount Note
(yielding 5.488%, 12/11/97 maturity)............................... 14,977,167
10,000 Federal National Mortgage Association Discount Note
(yielding 5.441%, 12/02/97 maturity)............................... 9,998,492
4,000 Federal National Mortgage Association Discount Note
(yielding 5.468%, 12/11/97 maturity)............................... 3,993,933
-----------
Total United States Government & Government
Agency Obligations................................................. 36,965,362
Commercial Paper 0.7%
516 State Street Bank and Trust (yielding 5.000%, 12/01/97 maturity)... 516,000
-----------
Total Short-Term Investments
(Cost $37,481,362)...................................................... 37,481,362
-----------
Total Investments 100.2%
(Cost $75,365,906)...................................................... 76,065,136
Foreign Currency, Various Denominations 0.0%
(Cost $17,290).......................................................... 17,190
Liabilities in Excess of Other Assets (0.2%)................................ (170,971)
-----------
Net Assets 100.0%........................................................... $75,911,355
===========
</TABLE>
(a) Assets segregated as collateral for forward purchase commitments.
7 See Notes to Financial Statements
<PAGE>
Statement of Assets and Liabilities
November 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
===========================================================================
Assets:
<S> <C>
Total Investments (Cost $75,365,906)......................... $ 76,065,136
Foreign Currency (Cost $17,290).............................. 17,190
Cash......................................................... 897
Receivables:
Interest................................................... 202,922
Fund Shares Sold........................................... 145,012
Forward Currency Contracts and Forward Commitments........... 221,921
Other........................................................ 7,679
------------
Total Assets............................................ 76,660,757
------------
Liabilities:
Payables:
Fund Shares Repurchased.................................... 346,887
Income Distributions....................................... 168,436
Distributor and Affiliates................................. 82,639
Investment Advisory Fee.................................... 48,555
Accrued Expenses............................................. 65,825
Trustees' Deferred Compensation and Retirement Plans......... 37,060
------------
Total Liabilities....................................... 749,402
------------
Net Assets................................................... $ 75,911,355
============
Net Assets Consist of:
Capital...................................................... $113,328,910
Net Unrealized Appreciation.................................. 949,455
Accumulated Distribution in Excess of Net Investment Income.. (835,939)
Accumulated Net Realized Loss................................ (37,531,071)
------------
Net Assets................................................... $ 75,911,355
============
Maximum Offering Price Per Share:
Class A Shares:
Net asset value and redemption price per share
(Based on net assets of $21,543,442 and 2,838,905
shares of beneficial interest issued and outstanding)...... $ 7.59
Maximum sales charge (4.75%* of offering price)............ .38
------------
Maximum offering price to public........................... $ 7.97
============
Class B Shares:
Net asset value and offering price per share
(Based on net assets of $49,823,221 and 6,528,279
shares of beneficial interest issued and outstanding)...... $ 7.63
============
Class C Shares:
Net asset value and offering price per share
(Based on net assets of $4,544,692 and 600,352 shares
of beneficial interest issued and outstanding)............. $ 7.57
============
* On sales of $100,000 or more, the sales charge will be reduced.
</TABLE>
8 See Notes to Financial Statements
<PAGE>
Statement of Operations
For the Six Months Ended November 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
=============================================================================
Investment Income:
<S> <C>
Interest (Net of foreign withholding taxes of $4,104)............ $2,616,035
----------
Expenses:
Distribution (12b-1) and Service Fees (Attributed to Classes A,
B and C of $29,680, $266,399 and $25,756, respectively)........ 321,835
Investment Advisory Fee.......................................... 308,155
Shareholder Services............................................. 202,921
Custody.......................................................... 68,358
Legal............................................................ 8,281
Trustees' Fees and Expenses...................................... 6,140
Other............................................................ 106,411
----------
Total Expenses.............................................. 1,022,101
----------
Net Investment Income............................................ $1,593,934
==========
Realized and Unrealized Gain/Loss:
Realized Gain/Loss:
Investments.................................................... $ 437,542
Forward Commitments............................................ 1,098,783
Foreign Currency Transactions.................................. (21,771)
----------
Net Realized Gain................................................ 1,514,554
----------
Unrealized Appreciation/Depreciation:
Beginning of the Period........................................ 1,613,248
----------
End of the Period:
Investments................................................. 699,230
Forward Commitments......................................... 254,793
Foreign Currency Translation................................ (4,568)
----------
949,455
----------
Net Unrealized Depreciation During the Period.................... (663,793)
----------
Net Realized and Unrealized Gain................................. $850,761
==========
Net Increase in Net Assets from Operations....................... $2,444,695
==========
</TABLE>
9 See Notes to Financial Statements
<PAGE>
Statement of Changes in Net Assets
For the Six Months Ended November 30, 1997 and the
Year Ended May 31, 1997 (Unaudited)
=============================================================================
<TABLE>
<CAPTION>
Six Months Ended Year Ended
November 30, 1997 May 31, 1997
- --------------------------------------------------------------------------------------
<S> <C> <C>
From Investment Activities:
Operations:
Net Investment Income.................................. $ 1,593,934 $ 7,404,343
Net Realized Gain/Loss................................. 1,514,554 (9,480,352)
Net Unrealized Appreciation/Depreciation
During the Period.................................... (663,793) 5,119,861
------------ ------------
Change in Net Assets from Operations................... 2,444,695 3,043,852
------------ ------------
Distributions from Net Investment Income:
Class A Shares....................................... (799,270) (2,102,906)
Class B Shares....................................... (1,571,348) (4,816,433)
Class C Shares....................................... (153,643) (459,054)
------------ ------------
Total Distributions.................................... (2,524,261) (7,378,393)
------------ ------------
Net Change in Net Assets from
Investment Activities................................ (79,566) (4,334,541)
------------ ------------
From Capital Transactions:
Proceeds from Shares Sold.............................. 6,098,684 8,442,389
Net Asset Value of Shares Issued
Through Dividend Reinvestment........................ 1,478,168 4,489,376
Cost of Shares Repurchased............................. (19,789,289) (63,966,605)
------------ ------------
Net Change in Net Assets from
Capital Transactions................................. (12,212,437) (51,034,840)
------------ ------------
Total Decrease in Net Assets........................... (12,292,003) (55,369,381)
Net Assets:
Beginning of the Period................................ 88,203,358 143,572,739
------------ ------------
End of the Period
(Including accumulated undistributed net investment
income of $(835,939) and $94,388, respectively)...... $ 75,911,355 $ 88,203,358
============ ============
</TABLE>
10 See Notes to Financial Statement
<PAGE>
Financial Highlights
The following schedule presents financial highlights for one share of the Fund
outstanding throughout the periods indicated. (Unaudited)
<TABLE>
<CAPTION>
Year Ended May 31,
Six Months Ended ----------------------------------
Class A Shares November 30, 1997 1997(a) 1996 1995 1994
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of the Period.................. $ 7.604 $ 7.92 $ 8.24 $ 8.26 $ 9.01
------- ------ ------ ------ -------
Net Investment Income................................... .167 .526 .56 .60 .78
Net Realized and Unrealized Gain/Loss................... .073 (.310) (.328) (.016) (.5715)
------- ------ ------ ------ -------
Total from Investment Operations.......................... .240 .216 .232 .584 .2085
------- ------ ------ ------ -------
Less:
Distributions from and in Excess of
Net Investment Income................................. .255 .532 .552 .604 .726
Distributions from and in Excess of
Net Realized Gain..................................... -0- -0- -0- -0- .2325
------- ------ ------ ------ -------
Total Distributions....................................... .255 .532 .552 .604 .9585
------- ------ ------ ------ -------
Net Asset Value, End of the Period........................ $ 7.589 $7.604 $ 7.92 $ 8.24 $ 8.26
======= ====== ====== ====== =======
Total Return (b).......................................... 3.27%* 2.65% 2.81% 7.52% 1.89%
Net Assets at End of the Period (In millions)............. $ 21.5 $ 25.7 $ 36.4 $ 47.9 $ 62.8
Ratio of Expenses to Average Net Assets (c)............... 1.95% 1.57% 1.51% 1.42% 1.45%
Ratio of Net Investment Income to
Average Net Assets (c).................................. 4.42% 6.58% 6.66% 7.18% 8.12%
Portfolio Turnover........................................ 46%* 161% 239% 209% 236%
</TABLE>
(a) Based on average month-end shares outstanding.
(b) Total Return is based upon net asset value which does not include payment of
the maximum sales charge or contingent deferred sales charge.
(c) The impact on the Ratios of Expenses and Net Investment Income to Average
Net Assets due to VKAC's reimbursement of certain expenses was less than
0.01%.
* Non-Annualized
11
<PAGE>
<TABLE>
<CAPTION>
Financial Highlights (Continued)
The following schedule presents financial highlights for one share of the Fund
outstanding throughout the periods indicated. (Unaudited)
===============================================================================
Six Months Ended Year Ended May 31,
------------------------------------
Class B Shares November 30, 1997 1997(a) 1996 1995 1994
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of the Period............. $ 7.645 $ 7.96 $ 8.28 $ 8.30 $ 9.04
------- ------ ------ ------ -------
Net Investment Income.............................. .135 .477 .49 .53 .69
Net Realized and Unrealized Gain/Loss.............. .077 (.320) (.318) (.006) (.5435)
------- ------ ------ ------ -------
Total from Investment Operations..................... .212 .157 .172 .524 .1465
------- ------ ------ ------ -------
Less:
Distributions from and in Excess of
Net Investment Income............................ .225 .472 .492 .544 .654
Distributions from and in Excess of
Net Realized Gain................................ -0- -0- -0- -0- .2325
-------- ------ ------ ------ -------
Total Distributions.................................. .225 .472 .492 .544 .8865
-------- ------ ------ ------ -------
Net Asset Value, End of the Period................... $ 7.632 $7.645 $ 7.96 $ 8.28 $ 8.30
======== ====== ====== ====== =======
Total Return (b)..................................... 2.71%* 2.00% 2.06% 6.69% 1.07%
Net Assets at End of the Period (In millions)........ $ 49.8 $ 56.9 $ 97.7 $123.4 $ 147.5
Ratio of Expenses to Average Net Assets (c).......... 2.71% 2.33% 2.27% 2.18% 2.22%
Ratio of Net Investment Income to
Average Net Assets (c)............................. 3.66% 5.86% 5.91% 6.41% 7.30%
Portfolio Turnover................................... 46%* 161% 239% 209% 236%
</TABLE>
(a) Based on average month-end shares outstanding.
(b) Total Return is based upon net asset value which does not include payment of
the maximum sales charge or contingent deferred sales charge.
(c) The impact on the Ratios of Expenses and Net Investment Income to Average
Net Assets due to VKAC's reimbursement of certain expenses was less than
0.01%.
* Non-Annualized
12
See Notes to Financial Statements
<PAGE>
<TABLE>
<CAPTION>
Financial Highlights (Continued)
The following schedule presents financial highlights for one share of the Fund
outstanding throughout the periods indicated. (Unaudited)
=====================================================================================================
Year Ended May 31,
Six Months Ended ----------------------------------
Class C Shares November 30, 1997 1997(a) 1996 1995 1994
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of the Period............. $ 7.585 $ 7.91 $ 8.22 $ 8.25 $ 8.99
------- ------ ------ ------ ------
Net Investment Income............................... .089 .471 .46 .51 .63
Net Realized and Unrealized Gain/Loss.............. .121 (.324) (.278) .004 (.4835)
------- ------ ------ ------ ------
Total from Investment Operations..................... .210 .147 .182 .514 .1465
------- ------ ------ ------ ------
Less:
Distributions from and in Excess of Net
Investment Income................................... .225 .472 .492 .544 .654
Distributions from and in Excess of Net
Realized Gain....................................... -0- -0- -0- -0- .2325
------- ------ ------ ------ ------
Total Distributions.................................. .225 .472 .492 .544 .8865
------- ------ ------ ------ ------
Net Asset Value, End of the Period................... $ 7.570 $7.585 $ 7.91 $ 8.22 $ 8.25
======= ====== ====== ====== ======
Total Return (b)..................................... 2.73%* 1.88% 2.20% 6.60% 1.19%
Net Assets at End of the Period (In millions)........ $ 4.6 $ 5.6 $ 9.5 $ 18.5 $ 23.5
Ratio of Expenses to Average Net Assets (c).......... 2.71% 2.33% 2.27% 2.18% 2.22%
Ratio of Net Investment Income to
Average Net Assets (c).............................. 3.66% 5.84% 5.91% 6.42% 7.13%
Portfolio Turnover................................... 46%* 161% 239% 209% 236%
</TABLE>
(a) Based on average month-end shares outstanding.
(b) Total Return is based upon net asset value which does not include payment of
the maximum sales charge or contingent deferred sales charge.
(c) The impact on the Ratios of Expenses and Net Investment Income to Average
Net Assets due to VKAC's reimbursement of certain expenses was less than
0.01%.
*Non-Annualized
13
See Notes to Financial Statements
<PAGE>
Notes to Financial Statements
November 30, 1997 (Unaudited)
1. Significant Accounting Policies
Van Kampen American Capital Global Government Securities Fund (the "Fund") is
organized as a series of Van Kampen American Capital World Portfolio Series
Trust, a Delaware business trust, and is registered as a non-diversified open-
end management investment company under the Investment Company Act of 1940, as
amended. The Fund's investment objective is to seek total return through a
managed balance of foreign and domestic debt securities. Investments in foreign
securities involve certain risks not ordinarily associated with investments in
securities of domestic issuers, including fluctuations in foreign exchange
rates, future political and economic developments, and the possible imposition
of exchange controls or other foreign governmental laws or restrictions. The
Fund commenced investment operations on November 15, 1991. The distribution of
the Fund's Class C shares commenced on April 12, 1993.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
A. Security Valuation--Investments are stated at values using market quotations
or, if such valuations are not available, estimates obtained from yield data
relating to instruments or securities with similar characteristics in accordance
with procedures established in good faith by the Board of Trustees. Short-term
securities with remaining maturities of 60 days or less are valued at amortized
cost.
B. Security Transactions--Security transactions are recorded on a trade date
basis. Realized gains and losses are determined on an identified cost basis.
The Fund may invest in repurchase agreements which are short-term
investments in which the Fund acquires ownership of a debt security and the
seller agrees to repurchase the security at a future time and specified price.
The Fund may invest independently in repurchase agreements or transfer
uninvested cash balances into a pooled cash account along with other investment
companies advised by Van Kampen American Capital Asset Management Inc. (the
"Adviser") or its affiliates, the daily aggregate of which is invested in
repurchase agreements. Repurchase agreements are collateralized by the
underlying debt security. The Fund will make payment for such securities only
upon physical delivery or evidence of book entry transfer to the account of the
custodian bank. The seller is required to maintain the value of the underlying
security at not less than the repurchase proceeds due the Fund.
14
<PAGE>
Notes to Financial Statements (Continued)
November 30, 1997 (Unaudited)
C. Investment Income--Interest income is recorded on an accrual basis. The Fund
accounts for discounts and premiums on the same basis as is used for federal
income tax reporting. Accordingly, original issue discounts on debt securities
purchased are amortized over the life of the security. Premiums on debt
securities are not amortized. Market discounts are recognized at the time of
sale as realized gains for book purposes and ordinary income for tax purposes.
D. Currency Translation--Assets and liabilities denominated in foreign
currencies and commitments under forward currency contracts are translated into
U.S. dollars based on quoted exchange rates as of noon Eastern Time. Purchases
and sales of portfolio securities are translated at the rate of exchange
prevailing when such securities were acquired or sold. Income and expenses are
translated at rates prevailing when accrued. 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.
E. Federal Income Taxes--It is the Fund's policy to comply with the requirements
of the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no provision for federal income taxes is required.
At November 30, 1997, for federal income tax purposes, cost is $75,383,118,
the aggregate gross unrealized appreciation is $3,056,318, and the aggregate
gross unrealized depreciation is $2,106,863, resulting in net unrealized
appreciation on investments, foreign currency contracts, forward commitments and
foreign currencies of $949,455.
The Fund intends to utilize provisions of the federal income tax laws which
allow it to carry a realized capital loss forward for eight years following the
year of the loss and offset such losses against any future realized capital
gains. At May 31, 1997, the Fund had an accumulated capital loss carryforward
for tax purposes of $32,183,105, which will expire between May 31, 2003 and May
31, 2005. 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.
F. Distribution of Income and Gains--The Fund declares daily and pays monthly
dividends from net investment income. Net investment income for federal income
tax purposes includes gains and losses realized on transactions in foreign
currencies. These realized gains and losses are included as net realized gains
or losses for financial reporting purposes. Net realized gains on securities, if
any, are distributed annually.
15
<PAGE>
Notes to Financial Statements (Continued)
November 30, 1997 (Unaudited)
2. Investment Advisory Agreement and Other Transactions with Affiliates
Under the terms of the Fund's Investment Advisory Agreement, the Adviser will
provide investment advice and facilities to the Fund for an annual fee payable
monthly. Investment advisory fees are calculated monthly, based on the average
daily net assets of the Fund at the annual rate of .75%. The Adviser has entered
into a subadvisory agreement with Morgan Stanley Asset Management, Inc. (the
"Subadviser"), who provides advisory services to the Fund and the Adviser with
respect to the Fund's investments. The Adviser pays 50% of its investment
advisory fee to the Subadviser.
For the six months ended November 30, 1997, the Fund recognized expenses of
approximately $8,300, representing legal services provided by Skadden, Arps,
Slate, Meagher & Flom (Illinois), counsel to the Fund, of which a trustee of the
Fund is an affiliated person.
For the six months ended November 30, 1997, the Fund recognized expenses of
approximately $10,800 representing VKAC's cost of providing accounting services
to the Fund. These services are provided by VKAC at cost.
ACCESS Investor Services, Inc. ("ACCESS"), an affiliate of the Adviser,
serves as the shareholder servicing agent for the Fund. For the six months ended
November 30, 1997, the Fund recognized expenses of approximately $129,000,
representing ACCESS' cost of providing transfer agency and shareholder services
plus a profit.
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 provides deferred compensation and retirement plans for its
trustees who are not officers of VKAC. Under the deferred compensation plan,
trustees may elect to defer all or a portion of their compensation to a later
date. Benefits under the retirement plan are payable for a ten-year period and
are based upon each trustee's years of service to the Fund. The maximum annual
benefit per trustee under the plan is equal to $2,500.
16
<PAGE>
Notes to Financial Statements (Continued)
November 30, 1997 (Unaudited)
================================================================================
3. Capital Transactions
The Fund has outstanding three classes of shares of beneficial interest, Classes
A, B and C, each with a par value of $.01 per share. There are an unlimited
number of shares of each class authorized.
At November 30, 1997, capital aggregated $32,406,285, $72,841,420 and
$8,081,205 for Classes A, B and C, respectively. For the six months ended
November 30, 1997, transactions were as follows:
<TABLE>
<CAPTION>
Shares Value
====================================================================
<S> <C> <C>
Sales:
Class A......................... 132,443 $ 1,005,797
Class B......................... 655,149 4,948,092
Class C......................... 19,046 144,795
---------- ------------
Total Sales....................... 806,638 $ 6,098,684
========== ============
Dividend Reinvestment:
Class A......................... 66,579 $ 505,832
Class B......................... 116,957 893,497
Class C......................... 10,406 78,839
---------- ------------
Total Dividend Reinvestment....... 193,942 $ 1,478,168
========== ============
Repurchases:
Class A......................... (734,447) $ (5,572,620)
Class B......................... (1,685,147) (12,889,856)
Class C......................... (174,666) (1,326,813)
---------- ------------
Total Repurchases................. (2,594,260) $(19,789,289)
========== ============
</TABLE>
17
<PAGE>
Notes to Financial Statements (Continued)
November 30, 1997 (Unaudited)
=================================================================
At May 31, 1997, capital aggregated $36,467,276, $79,889,687
and $9,184,384 for Classes A, B and C, respectively. For the year
ended May 31, 1997, transactions were as follows:
<TABLE>
<CAPTION>
Shares Value
==================================================================
<S> <C> <C>
Sales:
Class A............................. 415,170 $ 3,285,624
Class B............................. 612,589 4,868,118
Class C............................. 36,431 288,647
--------- ------------
Total Sales........................... 1,064,190 $ 8,442,389
========= ============
Dividend Reinvestment:
Class A............................. 169,671 $ 1,338,753
Class B............................. 365,738 2,907,050
Class C............................. 30,907 243,573
--------- ------------
Total Dividend Reinvestment........... 566,316 $ 4,489,376
========= ============
Repurchases:
Class A............................. (1,805,879) $(14,262,345)
Class B............................. (5,798,718) (45,573,947)
Class C............................. (523,469) (4,130,313)
--------- ------------
Total Repurchases..................... (8,128,066) $(63,966,605)
========= ==========
</TABLE>
Class B and C shares are offered without a front end sales charge, but are
subject to a contingent deferred sales charge (CDSC). The CDSC will be imposed
on most redemptions made within five years of the purchase for Class B and one
year of the purchase for Class C as detailed in the following schedule. The
Class B and C shares bear the expense of their respective deferred sales
arrangements, including higher distribution and service fees and incremental
transfer agency costs.
<TABLE>
<CAPTION>
Contingent Deferred
Sales Charge
-------------------
Year of Redemption Class B Class C
==================================================================
<S> <C> <C>
First.................................. 4.00% 1.00%
Second................................. 4.00% None
Third.................................. 3.00% None
Fourth................................. 2.50% None
Fifth.................................. 1.50% None
Sixth and Thereafter................... None None
</TABLE>
18
<PAGE>
Notes to Financial Statements (Continued)
November 30, 1997 (Unaudited)
For the six months ended November 30, 1997, VKAC, as Distributor for the
Fund, received commissions on sales of the Fund's Class A shares of
approximately $800 and CDSC on the redeemed shares of approximately $87,000.
Sales charges do not represent expenses of the Fund.
4. Investment Transactions
During the period, the cost of purchases and proceeds from sales of investments,
excluding short-term investments and forward commitments, were $39,090,453 and
$54,829,909, respectively.
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 Fund has a variety of reasons to use derivative instruments, such as to
attempt to protect the Fund against possible changes in the market value of its
portfolio, manage the portfolio's effective yield, foreign currency exposure, or
generate potential gain. All of the Fund's portfolio 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 forward commitment. In this instance, the recognition of
gain or loss is postponed until the disposal of the security underlying the
forward commitment.
A. Forward Purchase Commitment--The Fund trades certain securities under the
terms of forward purchase commitments, whereby the settlement occurs at a
specific future date. Forward purchase commitments are privately negotiated
transactions between the Fund and dealers. While forward purchase commitments
are outstanding, the Fund maintains sufficient collateral of cash or securities
in a segregated account with its custodian. The forward purchase commitments are
marked to market on a daily basis with changes in value reflected as a component
of unrealized appreciation/depreciation on forward commitments.
19
<PAGE>
<TABLE>
<CAPTION>
Notes to Financial Statements (Continued)
November 30, 1997 (Unaudited)
==================================================================================================================
The following forward purchase commitments were outstanding at November 30,1997:
Par Amount
in Local Unrealized
Currency Settlement Current Appreciation/
(000) Description Date Value Depreciation
==================================================================================================================
<S> <C> <C> <C> <C>
2,250-AU$ Australia (Commonwealth of),
9.00%, 09/15/04 maturity.......................... 01/21/98 $ 1,781,572 $(28,847)
2,250-AU$ Australia (Government of),
9.00%, 09/15/04 maturity.......................... 01/29/98 1,782,612 58,931
1,700-CA$ Canada (Government of),
7.50%, 03/01/01 maturity.......................... 01/28/98 1,271,181 (44)
850-CA$ Canada (Government of),
9.75%, 06/01/21 maturity.......................... 01/29/98 882,961 31,141
11,700-DKK Denmark (Kingdom of),
8.00%, 05/15/03 maturity.......................... 01/29/98 1,944,802 15,079
4,900-DKK Denmark (Kingdom of),
8.00%, 03/15/06 maturity.......................... 12/09/97 833,519 21,913
1,600-DEM Germany (Federal Republic of),
6.25%, 01/04/24 maturity.......................... 01/23/98 933,630 11,346
4,400-DEM Germany (Treuhandanstalt),
7.50%, 09/09/04 maturity.......................... 01/23/98 2,793,439 21,801
5,800-DEM Germany (Treuhandanstalt),
7.00%, 11/25/99 maturity.......................... 02/03/98 3,437,180 22,301
5,100-DEM Germany Unity (Federal Republic),
8.00%, 01/21/02 maturity.......................... 01/23/98 3,209,266 22,308
1,000-IEP Ireland (Republic of),
8.00%, 08/18/06 maturity.......................... 03/06/98 1,688,243 21,091
6,000,000-ITL Italy (Republic of),
9.50%, 02/01/06 maturity.......................... 01/30/98 4,284,747 97,900
70,000-JPY Japan (Government of),
5.50%, 03/20/02 maturity.......................... 01/21/98 646,310 5,816
240,000-JPY Japan (Government of),
5.50%, 03/20/02 maturity.......................... 01/29/98 2,214,029 11,337
410,000-JPY Japan (Government of),
3.40%, 06/20/05 maturity.......................... 01/29/98 3,572,617 33,354
21,000-SEK Sweden (Kingdom of),
6.00%, 02/09/05 maturity.......................... 01/29/98 2,692,050 (12,317)
20,000-SEK Sweden (Kingdom of),
13.00%, 06/15/01 maturity.......................... 01/29/98 3,139,753 (17,354)
2,200-GBP United Kingdom,
7.75%, 09/08/06 maturity.......................... 01/23/98 4,007,928 (8,718)
900-GBP United Kingdom,
8.00%, 06/07/21 maturity.......................... 01/23/98 1,818,613 11,937
----------- --------
$42,934,452 $318,975
=========== ========
</TABLE>
20
<PAGE>
Notes to Financial Statements (Continued)
November 30, 1997 (Unaudited)
B. Closed but Unsettled Forward Commitments--In certain situations, the Fund has
entered into offsetting transactions for outstanding forward commitments prior
to settlement of the obligation. In doing so, the Fund realizes a gain or loss
on the transaction at the time the forward commitment is closed. However,
settlement of both the purchase and sale is still scheduled to occur in the
denominated foreign currency at a future date. The net difference in the amount
of foreign currency on the trade is marked to market daily with any fluctuation
included as a component of unrealized gain/loss on forward contracts.
The following closed but unsettled forward transactions were outstanding at
November 30, 1997:
<TABLE>
<CAPTION>
Unrealized
Gain/Loss
Local Currency on Net US$ Net
----------------------- Currency Receivable
Description/Currency Receivable Payable Difference (Payable)
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Germany (Treuhandanstalt) -- Mark
(1,900,000 par, 7.50%, 09/09/04) 2,147,222 2,163,676 $ 13,978 $ (9,330)
German Unity (Federal) -- Mark
(1,000,000 par, 8.00%, 01/21/02) 1,102,344 1,102,444 (15,806) (57)
United Kingdom (Treasury) -- Pound
(300,000 par, 7.75%, 09/08/06) 328,930 332,961 (24,202) (6,808)
Japan (Govt. of) -- Yen
(250,000,000 par, 3.10%, 09/20/06) 270,165,240 269,365,130 48,976 6,269
--------- ---------
$ 22,946 $ (9,926)
========= =========
</TABLE>
21
<PAGE>
Notes to Financial Statements (Continued)
November 30, 1997 (Unaudited)
==============================================================================
C. Forward Currency Contracts-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 forward
contracts.
The following forward currency contracts were outstanding as of November
30, 1997:
<TABLE>
<CAPTION>
Unrealized
Current Appreciation/
Description Value Depreciation
===============================================================================
<S> <C> <C>
Long Contracts
Australian Dollar,
1,000,000 expiring 02/17/98............... $ 684,255 $ (20,595)
Canadian Dollar,
1,100,000 expiring 12/19/97............... 773,276 (25,388)
3,800,000 expiring 01/27/98............... 2,675,770 (81,250)
Swiss Franc,
800,000 expiring 12/05/97................. 561,604 (7,791)
German Mark,
4,854,369 expiring 12/05/97............... 2,753,911 71,198
865,590 expiring 12/05/97................. 491,054 12,695
4,234,298 expiring 12/05/97............... 2,402,141 44,711
4,400,000 expiring 12/12/97............... 2,497,253 58,229
16,512,090 expiring 01/09/98.............. 9,387,534 116,287
4,450,000 expiring 01/27/98............... 2,532,553 (26,389)
400,000 expiring 02/04/98................. 227,738 1,160
Danish Krone,
10,200,000 expiring 01/09/98.............. 1,523,146 20,937
7,200,000 expiring 02/04/98............... 1,076,473 (23,049)
Spanish Peseta,
830,000,000 expiring 12/05/97............. 5,567,341 119,717
75,000,000 expiring 02/05/97.............. 503,073 224
British Pound Sterling,
4,350,000 expiring 01/27/98............... 7,325,970 296,370
Italian Lira,
9,400,000,000 expiring 01/27/98........... 5,439,215 (47,593)
102,000,000 expiring 02/04/98............. 59,021 (779)
Japanese Yen,
425,000,000 expiring 01/09/98............. 3,354,251 (178,584)
190,000,000 expiring 01/09/98............. 1,499,547 (11,748)
310,000,000 expiring 01/27/98............. 2,452,818 (143,497)
Swedish Krona,
12,830,000 expiring 12/05/97.............. 1,662,094 22,058
18,600,000 expiring 12/05/97.............. 2,409,583 (35,532)
----------- ---------
Total Long Contracts...................... 57,859,621 161,391
----------- ---------
</TABLE>
22
<PAGE>
<TABLE>
<CAPTION>
Notes to Financial Statements (Continued)
November 30, 1997 (Unaudited)
===============================================================================
Unrealized
Original Current Appreciation/
Description Value Value Depreciation
===============================================================================
<S> <C> <C>
Forward Currency Contracts (Continued)
Short Contracts
Canadian Dollar,
4,000,000 expiring 12/05/97.................... $ 2,808,021 $ (125,308)
German Mark,
4,500,000 expiring 12/05/97.................... 2,552,876 (40,313)
984,737 expiring 12/05/97...................... 558,647 10,748
1,000,000 expiring 12/05/97.................... 567,306 17,979
3,100,000 expiring 12/12/97.................... 1,759,428 1,135
1,100,000 expiring 01/09/98.................... 625,377 16,135
Spanish Peseta,
360,000,000 expiring 12/05/97.................. 2,414,750 (57,320)
75,000,000 expiring 12/05/97................... 503,073 9,642
British Pound Sterling,
600,000 expiring 12/05/97...................... 1,013,026 (48,826)
300,000 expiring 12/05/97...................... 506,513 (28,154)
150,000 expiring 12/05/97...................... 253,256 514
Italian Lira,
1,800,000,000 expiring 02/04/98................ 1,041,540 (4,751)
------------- -----------
Total Short Contracts $ 14,603,813 $ (248,519)
------------- -----------
$ (87,128)
===========
</TABLE>
6. Distribution and Service Plans
The Fund and its shareholders have adopted a distribution plan pursuant to
Rule 12b-1 under the Investment Company Act of 1940 and a service plan
(collectively the "Plans"). The Plans govern payments for the distribution of
the Fund's shares, ongoing shareholder services and maintenance of shareholder
accounts.
Annual fees under the Plans of up to .25% for Class A and 1.00% each for
Class B and Class C shares are accrued daily. Included in these fees for the six
months ended November 30, 1997, are payments to VKAC of approximately $205,300.
23
<PAGE>
Van Kampen American Capital Global Government Securities Fund
Board of Trustees
J. Miles Branagan
Richard M. DeMartini*
Linda Hutton Heagy
R. Craig Kennedy
Jack E. Nelson
Jerome L. Robinson
Phillip B. Rooney
Fernando Sisto
Wayne W. Whalen* -- Chairman
Officers
Dennis J. McDonnell*
President
Ronald A. Nyberg*
Vice President and Secretary
Edward C. Wood, III*
Vice President and Chief Financial Officer
Curtis W. Morell*
Vice President and Chief Accounting Officer
John L. Sullivan*
Treasurer
Tanya M. Loden*
Controller
Peter W. Hegel*
Alan T. Sachtleben*
Paul R. Wolkenberg*
Vice Presidents
Investment Adviser
Van Kampen American Capital
Asset Management, Inc.
One Parkview Plaza
Oakbrook Terrace, Illinois 60181
Investment Subadviser
Morgan Stanley Asset
Management, Inc.
1585 Broadway
New York, New York 10036
Distributor
Van Kampen American Capital
Distributors, Inc.
One Parkview Plaza
Oakbrook Terrace, Illinois 60181
Shareholder Servicing Agent
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 (Illinois)
333 West Wacker Drive
Chicago, Illinois 60606
Independent Accountants
Price Waterhouse LLP
200 E.Randolph
Chicago, Illinois 60601
* "Interested" persons of the Fund, as defined in the Investment Company Act
of 1940.
(C) Van Kampen American Capital Distributors, Inc., 1998
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. After March 31, 1998, the report, if used with prospective
investors, must be accompanied by a quarterly performance update.
24
<PAGE>
Bulk Rate
U.S. Postage
PAID
VAN KAMPEN
AMERICAN CAPITAL
Van Kampen American Capital Distributors, Inc.
One Parkview Plaza
Oakbrook Terrace, Illinois 60181
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 21
<NAME> Global Government Securities Class A
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 76,365,906<F1>
<INVESTMENTS-AT-VALUE> 76,065,136<F1>
<RECEIVABLES> 347,934<F1>
<ASSETS-OTHER> 7,679<F1>
<OTHER-ITEMS-ASSETS> 240,008<F1>
<TOTAL-ASSETS> 76,660,757<F1>
<PAYABLE-FOR-SECURITIES> 0<F1>
<SENIOR-LONG-TERM-DEBT> 0<F1>
<OTHER-ITEMS-LIABILITIES> 749,402<F1>
<TOTAL-LIABILITIES> 749,402<F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 32,406,285
<SHARES-COMMON-STOCK> 2,838,905
<SHARES-COMMON-PRIOR> 3,374,330
<ACCUMULATED-NII-CURRENT> (835,939)<F1>
<OVERDISTRIBUTION-NII> 0<F1>
<ACCUMULATED-NET-GAINS> (37,531,071)<F1>
<OVERDISTRIBUTION-GAINS> 0<F1>
<ACCUM-APPREC-OR-DEPREC> 949,455<F1>
<NET-ASSETS> 21,543,442
<DIVIDEND-INCOME> 0<F1>
<INTEREST-INCOME> 2,616,035<F1>
<OTHER-INCOME> 0<F1>
<EXPENSES-NET> (1,022,101)<F1>
<NET-INVESTMENT-INCOME> 1,593,934<F1>
<REALIZED-GAINS-CURRENT> 1,514,554<F1>
<APPREC-INCREASE-CURRENT> (663,793)<F1>
<NET-CHANGE-FROM-OPS> 2,444,695<F1>
<EQUALIZATION> 0<F1>
<DISTRIBUTIONS-OF-INCOME> (799,270)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 132,443
<NUMBER-OF-SHARES-REDEEMED> (734,447)
<SHARES-REINVESTED> 66,579
<NET-CHANGE-IN-ASSETS> (4,114,996)
<ACCUMULATED-NII-PRIOR> 94,388<F1>
<ACCUMULATED-GAINS-PRIOR> (39,045,625)<F1>
<OVERDISTRIB-NII-PRIOR> 0<F1>
<OVERDIST-NET-GAINS-PRIOR> 0<F1>
<GROSS-ADVISORY-FEES> 308,155<F1>
<INTEREST-EXPENSE> 0<F1>
<GROSS-EXPENSE> 1,022,101<F1>
<AVERAGE-NET-ASSETS> 23,743,701
<PER-SHARE-NAV-BEGIN> 7.604
<PER-SHARE-NII> 0.167
<PER-SHARE-GAIN-APPREC> 0.073
<PER-SHARE-DIVIDEND> (0.255)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 7.589
<EXPENSE-RATIO> 1.95
<AVG-DEBT-OUTSTANDING> 0<F1>
<AVG-DEBT-PER-SHARE> 0<F1>
<FN>
<F1> This item relates to the Fund on a composite basis and not on a class basis
</FN>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 22
<NAME> GLOBAL GOVERNMENT SECURITIES CLASS B
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 76,365,906<F1>
<INVESTMENTS-AT-VALUE> 76,065,136<F1>
<RECEIVABLES> 347,934<F1>
<ASSETS-OTHER> 7,679<F1>
<OTHER-ITEMS-ASSETS> 240,008<F1>
<TOTAL-ASSETS> 76,660,757<F1>
<PAYABLE-FOR-SECURITIES> 0<F1>
<SENIOR-LONG-TERM-DEBT> 0<F1>
<OTHER-ITEMS-LIABILITIES> 749,402<F1>
<TOTAL-LIABILITIES> 749,402<F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 72,841,420
<SHARES-COMMON-STOCK> 6,528,279
<SHARES-COMMON-PRIOR> 7,441,320
<ACCUMULATED-NII-CURRENT> (835,939)<F1>
<OVERDISTRIBUTION-NII> 0<F1>
<ACCUMULATED-NET-GAINS> (37,531,071)<F1>
<OVERDISTRIBUTION-GAINS> 0<F1>
<ACCUM-APPREC-OR-DEPREC> 949,455<F1>
<NET-ASSETS> 49,823,221
<DIVIDEND-INCOME> 0<F1>
<INTEREST-INCOME> 2,616,035<F1>
<OTHER-INCOME> 0<F1>
<EXPENSES-NET> (1,022,101)<F1>
<NET-INVESTMENT-INCOME> 1,593,934<F1>
<REALIZED-GAINS-CURRENT> 1,514,554<F1>
<APPREC-INCREASE-CURRENT> (663,793)<F1>
<NET-CHANGE-FROM-OPS> 2,444,695<F1>
<EQUALIZATION> 0<F1>
<DISTRIBUTIONS-OF-INCOME> (1,571,348)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 655,159
<NUMBER-OF-SHARES-REDEEMED> (1,685,147)
<SHARES-REINVESTED> 116,957
<NET-CHANGE-IN-ASSETS> (7,066,449)
<ACCUMULATED-NII-PRIOR> 94,388<F1>
<ACCUMULATED-GAINS-PRIOR> (39,045,625)<F1>
<OVERDISTRIB-NII-PRIOR> 0<F1>
<OVERDIST-NET-GAINS-PRIOR> 0<F1>
<GROSS-ADVISORY-FEES> 308,155<F1>
<INTEREST-EXPENSE> 0<F1>
<GROSS-EXPENSE> 1,022,101<F1>
<AVERAGE-NET-ASSETS> 53,279,804
<PER-SHARE-NAV-BEGIN> 7.645
<PER-SHARE-NII> 0.135
<PER-SHARE-GAIN-APPREC> 0.077
<PER-SHARE-DIVIDEND> (0.225)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 7.632
<EXPENSE-RATIO> 2.71
<AVG-DEBT-OUTSTANDING> 0<F1>
<AVG-DEBT-PER-SHARE> 0<F1>
<FN>
<F1> This item relates to the Fund on a composite basis and not on a class basis
</FN>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 23
<NAME> Global Government Securities Class C
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 76,365,906
<INVESTMENTS-AT-VALUE> 76,065,136<F1>
<RECEIVABLES> 347,934<F1>
<ASSETS-OTHER> 7,679<F1>
<OTHER-ITEMS-ASSETS> 240,008<F1>
<TOTAL-ASSETS> 76,660,757<F1>
<PAYABLE-FOR-SECURITIES> 0<F1>
<SENIOR-LONG-TERM-DEBT> 0<F1>
<OTHER-ITEMS-LIABILITIES> 749,402<F1>
<TOTAL-LIABILITIES> 749,402<F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 8,081,205
<SHARES-COMMON-STOCK> 600,352
<SHARES-COMMON-PRIOR> 745,566
<ACCUMULATED-NII-CURRENT> (835,939)<F1>
<OVERDISTRIBUTION-NII> 0<F1>
<ACCUMULATED-NET-GAINS> (37,531,071)<F1>
<OVERDISTRIBUTION-GAINS> 0<F1>
<ACCUM-APPREC-OR-DEPREC> 949,455<F1>
<NET-ASSETS> 4,544,692
<DIVIDEND-INCOME> 0<F1>
<INTEREST-INCOME> 2,616,035<F1>
<OTHER-INCOME> 0<F1>
<EXPENSES-NET> (1,022,101)<F1>
<NET-INVESTMENT-INCOME> 1,593,934<F1>
<REALIZED-GAINS-CURRENT> 1,514,554<F1>
<APPREC-INCREASE-CURRENT> (663,793)<F1>
<NET-CHANGE-FROM-OPS> 2,444,695<F1>
<EQUALIZATION> 0<F1>
<DISTRIBUTIONS-OF-INCOME> (153,643)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 19,046
<NUMBER-OF-SHARES-REDEEMED> (174,666)
<SHARES-REINVESTED> 10,406
<NET-CHANGE-IN-ASSETS> (1,110,558)
<ACCUMULATED-NII-PRIOR> 94,388<F1>
<ACCUMULATED-GAINS-PRIOR> (39,045,625)<F1>
<OVERDISTRIB-NII-PRIOR> 0<F1>
<OVERDIST-NET-GAINS-PRIOR> 0<F1>
<GROSS-ADVISORY-FEES> 308,155<F1>
<INTEREST-EXPENSE> 0<F1>
<GROSS-EXPENSE> 1,022,101<F1>
<AVERAGE-NET-ASSETS> 5,151,159
<PER-SHARE-NAV-BEGIN> 7.585
<PER-SHARE-NII> 0.089
<PER-SHARE-GAIN-APPREC> 0.121
<PER-SHARE-DIVIDEND> (0.225)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 7.570
<EXPENSE-RATIO> 2.71
<AVG-DEBT-OUTSTANDING> 0<F1>
<AVG-DEBT-PER-SHARE> 0<F1>
<FN>
<F1>This item relates to the Fund on a composite basis and not on a class basis
</FN>
</TABLE>
