|
|
|
|
|
|
|
|
|
|
Previous: MUNIYIELD FUND INC, N-30D, 1998-06-17 |
Next: SMITH BARNEY INVESTMENT TRUST, 497, 1998-06-17 |
VAN KAMPEN AMERICAN CAPITAL
SMALL
CAPITALIZATION
FUND
Semi-Annual Report
April 30, 1998
<PAGE>
Van Kampen American Capital Small Capitalization Fund
Portfolio of Investments (Continued)
April 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
Description Shares Market Value
- - ----------- ------ ------------
<S> <C> <C>
COMMON STOCK 98.9%
CONSUMER DISTRIBUTION 5.5%
Americredit Corp. (a) 4,200 $ 140,172
BJ's Wholesale Club, Inc. (a) 1,400 56,000
Brightpoint, Inc. (a) 17,200 333,250
DIMON, Inc. 2,300 33,922
Food Lion, Inc. 9,200 94,300
Homebase, Inc. (a) 1,400 11,635
HON Industries, Inc. 8,200 263,422
Hughes Supply, Inc. 3,000 116,810
Lear Seating Corp. (a) 2,000 107,500
Lexmark International Group, Inc., Class A (a) 3,000 175,872
Meyer (Fred), Inc. Delaware (a) 2,800 125,472
Neiman-Marcus Group, Inc. (a) 1,800 65,700
Premark International, Inc 4,600 154,385
Proffitts, Inc. (a) 2,680 107,200
Rite Aid Corp. 9,200 294,400
Safeway, Inc. (a) 13,700 519,741
Saks Holdings, Inc. (a) 2,300 51,460
Supervalue, Inc. 2,300 100,622
Tech Data Corp. (a) 2,300 114,422
TJX Cos., Inc. 15,600 690,300
U.S. Office Products Co. (a) 3,450 61,238
Zale Corp. (a) 2,900 88,269
---------
3,706,092
---------
CONSUMER DURABLES 3.0%
Arvin Industries, Inc. 9,900 408,375
Borg Warner Automotive, Inc. 3,700 230,788
Callaway Golf Co. 2,800 76,650
Culligan Water Technologies, Inc. (a) 225 13,106
Furniture Brands International, Inc. (a) 13,800 408,825
Galoob Toys, Inc. (a) 200 2,175
Harman International Industries, Inc. 1,100 46,131
Mohawk Industries, Inc. (a) 11,700 354,656
Snap-On, Inc. 9,600 408,000
Sturm Ruger & Co., Inc. 3,700 73,075
---------
2,021,781
---------
CONSUMER NON-DURABLES 10.1%
Alberto Culver Co., Class B 3,800 112,575
American Greetings Corp., Class A 6,900 321,713
Borders Group, Inc. (a) 4,600 144,325
Brown Group, Inc. 8,000 127,500
Burlington Industries, Inc. (a) 9,200 158,700
Dean Foods Co. 4,600 215,625
Donnkenny, Inc. (a) 11,500 44,563
Fossil, Inc. (a) 20,000 450,000
Fruit of the Loom, Inc. (a) 6,100 229,513
See Notes to Financial Statements
1.
<PAGE>
<CAPTION>
Description Shares Market Value
- - ----------- ------ ------------
<S> <C> <C>
CONSUMER NON-DURABLES (CONTINUED)
Griffon Corp. (a) 10,700 $ 141,775
Guilford Mills, Inc. 20,700 582,188
Herbalife International, Inc., Class A 3,700 104,062
Herbalife International, Inc., Class B 7,400 193,325
Jones Apparel Group, Inc. (a) 5,000 299,688
Lancaster Colony Corp. 4,800 184,500
Liz Claiborne, Inc. 5,500 270,188
McCormick & Co., Inc. 2,300 78,775
Michael Foods, Inc. 5,000 145,313
Nautica Enterprises, Inc. (a) 12,400 320,850
Oxford Industries, Inc. 6,000 209,625
Reebok International Ltd. (a) 4,600 135,700
Revlon, Inc., Class A (a) 2,800 146,300
Russ Berrie & Co., Inc. 9,200 263,350
Russell Corp. 14,400 388,800
Scotts Co., Class A (a) 3,000 110,625
Smithfield Foods, Inc. (a) 13,800 417,450
St John Knits, Inc. 3,400 151,725
Tultex Corp. (a) 39,100 131,963
Unifi, Inc. 8,600 330,025
Westpoint Stevens, Inc. (a) 10,800 360,450
---------
6,771,191
---------
CONSUMER SERVICES 6.3%
Amresco, Inc. (a) 9,200 330,050
APAC Teleservices, Inc. (a) 1,400 13,300
Applebee's International, Inc. 1,800 45,000
Banta Corp. 6,900 222,525
Darden Restaurants, Inc. 10,000 160,000
Firstplus Financial Group, Inc. (a) 2,300 111,406
Imperial Credit Industries, Inc. (a) 8,000 206,500
International Game Technology 4,600 127,075
King World Productions, Inc. (a) 18,400 491,050
Media General, Inc., Class A 2,400 113,700
MGM Grand, Inc. (a) 4,600 155,538
New York Times Co., Class A 6,400 453,600
Norrell Corp. 4,200 90,300
Ogden Corp. 5,000 153,750
Omnicom Group 10,800 509,625
Papa John's International, Inc. (a) 6,550 274,281
Promus Hotel Corp. (a) 3,052 138,103
Regal Cinemas, Inc. (a) 9,350 285,759
Sonic Corp. (a) 2,800 90,650
Stewart Enterprises, Inc., Class A 4,600 124,200
Sunburst Hospitality Corp. (a) 1,233 9,941
Valassis Communications, Inc. (a) 3,200 125,600
---------
4,231,953
---------
See Notes to Financial Statements
2.
<PAGE>
<CAPTION>
Description Shares Market Value
- - ----------- ------ ------------
<S> <C> <C>
ENERGY 7.5%
Apache Corp. 5,100 $ 182,006
Ashland, Inc. 3,200 169,000
BJ Services Co. (a) 1,200 44,325
Canadian Occidental Petroleum Ltd. 3,700 76,775
Cliffs Drilling Co. (a) 2,800 137,025
Columbia Gas Systems, Inc. 3,700 299,931
Devon Energy Corp. 2,300 93,006
El Paso Natural Gas Co. 9,400 347,800
KeySpan Energy Corp. 6,900 237,619
MCN Corp. 500 18,844
Murphy Oil Corp. 2,300 120,175
National Fuel Gas Co. 2,300 105,656
Newfield Exploration Co. (a) 1,800 44,663
NGC Corp. 4,600 67,563
NICOR, Inc. 500 20,500
Offshore Logistics, Inc. (a) 4,600 108,963
ONEOK, Inc. 11,200 446,600
Pennzoil Co. 3,200 204,000
Pool Energy Services Co. (a) 11,500 301,875
Reading & Bates Corp. (a) 1,652 53,380
Seagull Energy Corp. (a) 3,488 59,514
Smith International, Inc. (a) 2,300 133,113
Tesoro Petroleum Corp. (a) 14,200 282,225
Tidewater, Inc. 2,300 90,994
Union Texas Petroleum Holdings, Inc. 6,600 133,650
Valero Energy Corp. 5,800 187,413
Vintage Petroleum, Inc. 13,800 269,963
Washington Gas & Light Co. 7,400 199,800
WICOR, Inc. 8,900 427,200
Williams Cos. 4,764 147,982
---------
5,011,560
---------
FINANCE 17.1%
20th Century Industries 3,500 100,406
Allied Group, Inc. 3,450 102,638
AMBAC, Inc. 8,200 459,200
American Financial Group, Inc. 6,400 278,400
Amsouth Bancorp. 6,150 385,144
Associated Banc-Corp. 1,591 85,815
California Federal Bancorp, Inc. (a) 600 14,700
Charter One Financial, Inc. 4,147 281,996
Choice Hotels International, Inc. (a) 3,700 62,900
City National Corp. 7,600 284,050
Cityscape Financial Corp. (a) 4,600 2,731
CMAC Investment Corp. 3,300 213,881
Concentra Managed Care, Inc. (a) 2,500 76,875
Conseco, Inc. 8,818 436,491
Countrywide Credit Industries, Inc. 6,900 334,219
See Notes to Financial Statements
3.
<PAGE>
<CAPTION>
Description Shares Market Value
- - ----------- ------ ------------
<S> <C> <C>
FINANCE (CONTINUED)
Delta Financial Corp. (a) 20,000 $ 352,500
Donaldson Lufkin & Jenrette, Inc. 2,800 264,950
Edwards (A.G.), Inc. 7,650 344,250
Enhance Financial Services Group, Inc. 2,000 137,500
Everest Reinsurance Holdings, Inc. 12,000 490,500
Finova Group, Inc. 1,800 105,525
First American Financial Corp. 4,800 341,100
Fremont General Corp. 7,050 394,800
Frontier Insurance Group, Inc. 4,600 121,325
Greenpoint Financial Corp. 5,400 220,725
HCC Insurance Holdings, Inc. 2,300 50,025
Horace Mann Educators Corp. 3,000 104,813
Lehman Brothers Holdings, Inc. 1,400 100,275
Mercantile Bankshares Corp. 3,400 129,625
Mercury General Corp. 4,600 298,425
MGIC Investment Corp. of Wisconsin 1,700 108,056
Money Store, Inc. 6,900 226,406
Nationwide Financial Services, Inc., Class A 10,000 436,250
North Fork Bancorp. 7,298 273,219
Orion Capital Corp. 8,400 466,725
Pacific Century Financial Corp. 4,600 113,563
Paine Webber Group, Inc. 3,450 154,172
Penncorp Financial Group, Inc. 2,300 60,088
PMI Group, Inc. 900 73,800
Protective Life Corp. 13,800 512,325
Reliance Group Holdings, Inc. 2,600 46,150
Republic New York Corp. 2,300 309,638
Resource Bancshares Management Group, Inc. 9,660 172,673
San Juan Basin Royalty Trust 10,000 80,000
Southtrust Corp. 7,200 305,100
Sovereign Bancorp, Inc. 26,056 496,693
T R Financial Corp. 4,600 164,163
Transatlantic Holdings, Inc. 6,000 462,750
U.S. Trust Corp. 2,300 161,719
Unitrin, Inc. 2,300 160,138
Vesta Insurance Group, Inc. 2,300 130,956
---------
11,490,368
---------
HEALTHCARE 11.8%
Access Health, Inc. (a) 3,000 100,875
ADAC Laboratories (a) 4,600 99,763
Agouron Pharmaceuticals, Inc. (a) 1,800 61,538
Beckman Industries, Inc. 6,000 334,500
Biomet, Inc. 4,600 138,288
Coherent, Inc. (a) 6,400 151,200
Cooper Companies, Inc. (a) 3,000 115,125
Curative Health Services, Inc. (a) 4,600 139,150
Dekalb Genetics Corp., Class B 2,200 150,150
See Notes to Financial Statements
4.
<PAGE>
<CAPTION>
Description Shares Market Value
- - ----------- ------ ------------
<S> <C> <C>
HEALTHCARE (CONTINUED)
Dura Pharmaceuticals, Inc. (a) 2,800 $ 73,150
ESC Medical Systems, Ltd. (a) 7,300 239,075
First Health Group Corp. (a) 900 52,875
FPA Medical Management, Inc. (a) 11,500 140,516
Haemonetics Corp. (a) 5,500 96,938
HBO & Co. 3,600 219,375
Health Management Associates, Inc., Class A (a) 23,850 754,256
Healthcare & Retirement Corp. (a) 3,100 127,100
Healthsouth Corp. (a) 12,300 369,000
Integrated Health Services, Inc. 2,903 110,133
Lincare Holdings, Inc. (a) 8,700 704,972
Manor Care, Inc. 3,700 129,500
Medicis Pharmaceutical Corp., Class A (a) 3,700 157,944
Minimed, Inc. (a) 3,300 166,031
Mylan Labs, Inc. 5,000 137,813
NBTY, Inc. (a) 30,400 571,900
Pacificare Health Systems, Inc., Class A (a) 80 5,598
Phycor, Inc. (a) 2,300 52,181
PSS World Medical Inc. (a) 10,000 223,750
Quorum Health Group, Inc. (a) 7,650 243,844
Rexall Sundown, Inc. (a) 18,400 588,800
Sun Healthcare Group (a) 5,000 84,063
Sybron International Corp. (a) 11,400 300,675
Tenet Healthcare Corp. (a) 4,750 178,719
Total Renal Care Holdings, Inc. (a) 13,311 439,263
U.S. Surgical Corp. 1,400 44,013
Vivus, Inc. (a) 7,400 82,788
Watson Pharmaceuticals, Inc. (a) 8,640 369,900
---------
7,954,761
---------
PRODUCER MANUFACTURING 7.1%
ACX Technologies, Inc. (a) 2,800 67,900
Aeroquip-Vickers, Inc. 2,000 126,375
American Standard Cos., Inc. (a) 3,400 166,175
Ametek, Inc. 2,300 69,719
Blount International, Inc., Class A 3,200 101,000
Camco International, Inc. 3,200 211,000
Cummins Engine Co., Inc. 4,100 221,913
Flowserve Corp. 1,100 33,138
Global Industrial Technologies, Inc. (a) 9,900 173,869
Harnischfeger Industries, Inc. 2,800 78,925
Harsco Corp. 2,800 130,550
IDEX Corp. 9,350 342,444
Intermet Corp. 2,300 47,438
Johnson Controls, Inc. 3,700 219,688
Kaydon Corp. 4,600 201,538
Kennametal, Inc. 2,000 106,875
Manitowoc Co., Inc. 3,400 155,550
See Notes to Financial Statements
5.
<PAGE>
<CAPTION>
Description Shares Market Value
- - ----------- ------ ------------
<S> <C> <C>
PRODUCER MANUFACTURING (CONTINUED)
Mastec, Inc. (a) 2,100 $ 54,338
Mueller Industries, Inc. (a) 2,300 156,400
National Service Industries, Inc. 2,800 151,900
PACCAR, Inc. 3,800 223,963
Republic Industries, Inc. (a) 2,300 64,256
Robbins & Myers, Inc. 5,000 166,250
Ruddick Corp. 4,600 83,088
Southdown, Inc. 4,000 282,000
Tecumseh Products Co., Class A 4,600 231,725
Timken Co. 10,100 398,319
Trinity Industries, Inc. 8,300 420,188
U.S. Filter Corp. (a) 2,300 74,894
---------
4,761,418
---------
RAW MATERIALS/PROCESSING INDUSTRIES 3.5%
A K Steel Holding Corp. 1,800 37,800
Cytec Industries, Inc. (a) 2,500 137,813
Fuller (H. B.) Co. 2,300 144,325
Goodrich (B. F.) Co. 3,220 173,075
Lyondell Petrochemical Co. 7,400 245,125
Medusa Corp. 1,600 98,300
Mississippi Chemical Corp. 1,674 30,341
Potlatch Corp. 900 42,469
Rayonier, Inc. 5,100 258,825
Terra Industries, Inc. 17,000 180,625
Texas Industries, Inc. 2,000 129,125
USG Corp. (a) 5,100 263,606
USX-US Steel Group, Inc. 4,600 180,838
Valspar Corp. 4,100 163,488
Vulcan Materials Co. 2,300 264,500
---------
2,350,255
---------
TECHNOLOGY 17.4%
Adaptec, Inc. (a) 4,600 108,675
Altera Corp. (a) 2,500 101,250
Applied Magnetics Corp. (a) 11,500 117,156
Autodesk, Inc. 3,000 141,375
Avnet, Inc. 2,300 142,456
Avx Corp. 5,300 108,650
BancTec, Inc. (a) 9,200 200,100
BMC Software, Inc. (a) 2,100 195,563
Cadence Design Systems, Inc. (a) 2,800 101,850
Cambridge Technology Partners (a) 1,800 96,750
CIBER, Inc. (a) 4,000 130,500
Citrix Systems, Inc. (a) 10,800 668,250
Comverse Technology, Inc. (a) 2,990 141,838
Cymer, Inc. (a) 6,000 135,375
Data General Corp. (a) 13,800 208,725
See Notes to Financial Statements
6.
<PAGE>
<CAPTION>
Description Shares Market Value
- - ----------- ------ ------------
<S> <C> <C>
TECHNOLOGY (CONTINUED)
Davox Corp. (a) 9,900 $ 221,513
Digital Microwave Corp. (a) 14,600 172,463
DII Group, Inc. (a) 10,000 231,250
Discreet Logic, Inc. (a) 5,000 91,875
Elsag Bailey Process Automation N.V. (a) 6,900 136,275
Esterline Technologies Corp. (a) 12,000 270,750
Fiserv, Inc. (a) 3,700 239,113
General Signal Corp. 2,300 102,063
GenRad, Inc. (a) 6,400 126,800
Harris Corp. 4,600 230,288
HMT Technology Corp. (a) 10,000 130,625
Hutchinson Technology, Inc. (a) 6,900 212,175
Hyperion Software Corp. (a) 3,300 142,725
Iomega Corp. (a) 9,200 73,600
Jabil Circuit, Inc. (a) 7,400 262,700
Legato Systems, Inc. (a) 8,000 248,000
Linear Technology Corp. 900 72,338
Loral Corp. (a) 2,300 72,163
Manugistics Group, Inc. (a) 3,000 179,625
Microchip Technology, Inc. (a) 2,300 65,838
Micron Electronics, Inc. (a) 4,600 64,975
Neomagic Corp. (a) 10,000 208,750
Networks Associates, Inc. (a) 2,100 145,228
Periphonics Corp. (a) 13,600 161,500
Pioneer-Standard Electronics, Inc. 14,000 175,000
Plexus Corp. (a) 5,000 107,500
Project Software & Dev, Inc. (a) 4,600 124,200
Quantum Corp. (a) 8,000 187,000
Radisys Corp. (a) 4,600 124,200
Rational Software Corp. (a) 2,800 47,513
Recoton Corp. (a) 11,100 283,744
Remedy Corp. (a) 8,300 188,306
Sanmina Corp. (a) 3,700 330,688
Saville Systems PLC, Class A (a) 3,000 148,875
SCI Systems, Inc. (a) 9,200 379,500
Solectron Corp. (a) 3,700 164,881
Storage Technology Corp. (a) 9,600 807,000
Stratus Computer, Inc. (a) 2,600 114,400
Sundstrand Corp. 3,200 222,400
Symbol Technologies, Inc. 1,575 61,327
Systems & Computer Technology Corp. (a) 8,000 451,500
Tekelec (a) 9,000 446,063
Tracor, Inc. (a) 7,800 305,663
Unitrode Corp. (a) 10,800 172,125
Visio Corp. (a) 3,000 149,250
Western Digital Corp. (a) 9,600 183,600
Wyman-Gordan Co. (a) 2,300 47,294
---------
11,683,174
---------
See Notes to Financial Statements
7.
<PAGE>
<CAPTION>
Description Shares Market Value
- - ----------- ------ ------------
<S> <C> <C>
TRANSPORTATION 1.8%
Continental Airlines, Inc., Class B (a) 2,300 $ 135,125
Expeditors International of Washington, Inc. 4,600 198,950
Halter Marine Group, Inc. (a) 9,296 167,909
Seacor Holdings, Inc. (a) 3,700 215,063
UAL Corp. (a) 1,400 121,800
U.S. Air Group, Inc. (a) 2,600 188,338
USFreightways Corp. 4,600 164,163
---------
1,191,348
---------
UTILITIES 7.8%
Boston Edison Co. 9,700 395,881
CalEnergy, Inc. (a) 5,000 164,375
Central Hudson Gas & Electric Corp. 9,000 363,938
Century Telephone Enterprises, Inc. 750 31,969
Cincinnati Bell, Inc. 5,100 193,800
Commonwealth Energy System Cos. 2,300 86,969
DQE, Inc. 5,500 189,063
FirstEnergy Corp. 9,227 279,693
Kansas City Power & Light Co. 3,700 109,844
LG & E Energy Corp. 4,600 121,900
Long Island Lighting Co. 21,600 649,350
MDU Resources Group, Inc. 3,000 104,438
MidAmerican Energy Holdings Co. 6,900 146,194
Montana Power Co. 6,900 255,731
New Century Energies, Inc. 3,700 176,675
New York State Electric & Gas Corp. 13,800 570,975
NIPSCO Industries, Inc. 3,600 96,975
Pacific Gas & Electric Co. 1,524 49,340
Pinnacle West Capital Corp. 4,600 203,838
Public Service Co. of New Mexico 15,200 352,450
Sierra Pacific Resources 2,300 80,500
United Illuminating Co. 2,900 144,456
UtiliCorp United, Inc. 3,000 113,438
Western Resources, Inc. 9,200 359,950
---------
5,241,742
---------
See Notes to Financial Statements
8.
<PAGE>
<CAPTION>
Description Market Value
- - ----------- ------------
<S> <C>
TOTAL LONG-TERM INVESTMENTS 98.9%
(Cost $41,701,438) $66,415,643
REPURCHASE AGREEMENT 1.1%
DLJ ($720,000 par, collateralized by U.S. Government
obligations in a pooled cash account, dated 04/30/98,
to be sold on 05/01/98 at $720,110) (Cost $720,000) 720,000
----------
TOTAL INVESTMENTS 100.0%
(Cost $42,421,438) 67,135,643
OTHER ASSETS IN EXCESS OF LIABILITIES 8,961
----------
NET ASSETS 100.0% $67,144,604
==========
(a) Non-income producing security as this stock currently
does not declare dividends.
See Notes to Financial Statements
9.
</TABLE>
<PAGE>
VAN KAMPEN AMERICAN CAPITAL SMALL CAPITALIZATION FUND
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Total Investments (Cost $42,421,438) $ 67,135,643
Cash 1,257
Dividends Receivable 52,666
Unamortized Organizational Costs 8,127
Other 3,241
-------------
Total Assets 67,200,934
-------------
LIABILITIES:
Trustees' Deferred Compensation and Retirement Plans 30,573
Accrued Expenses 18,856
Payable to Affiliates 6,901
-------------
Total Liabilities 56,330
-------------
NET ASSETS $ 67,144,604
=============
NET ASSETS CONSIST OF:
Capital $ 39,667,860
Net Unrealized Appreciation 24,714,205
Accumulated Net Realized Gain 2,522,437
Accumulated Undistributed Net Investment Income 240,102
-------------
NET ASSETS $ 67,144,604
=============
Net Asset Value, Offering Price and Redemption Price
Per Share (Based on net assets of $67,144,604 and 5,487,382
shares of beneficial interest issued and outstanding) $ 12.24
=============
See Notes to Financial Statements
10.
</TABLE>
<PAGE>
VAN KAMPEN AMERICAN CAPITAL SMALL CAPITALIZATION FUND
STATEMENT OF OPERATIONS
For the Six Months Ended April 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Dividends $ 392,326
Interest 13,779
-------------
Total Income 406,105
-------------
EXPENSES:
Audit 11,026
Accounting Services 8,301
Shareholder Services 7,500
Trustees' Fees and Expenses 7,339
Amortization of Organizational Costs 6,300
Shareholder Reports 5,752
Legal 3,309
Other 1,614
-------------
Total Expenses 51,141
-------------
NET INVESTMENT INCOME $ 354,964
=============
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Gain $ 2,598,058
-------------
Unrealized Appreciation/Depreciation:
Beginning of the Period 18,532,862
End of the Period 24,714,205
-------------
Net Unrealized Appreciation During the Period 6,181,343
-------------
NET REALIZED AND UNREALIZED GAIN $ 8,779,401
=============
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 9,134,365
=============
See Notes to Financial Statements
11.
</TABLE>
<PAGE>
VAN KAMPEN AMERICAN CAPITAL SMALL CAPITALIZATION FUND
STATEMENT OF CHANGES IN NET ASSETS
For the Six Months Ended April 30, 1998 and the Year Ended October 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended Year Ended
April 30, 1998 October 31, 1997
------------------- --------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income $ 354,964 $ 2,120,328
Net Realized Gain 2,598,058 59,842,669
Net Unrealized Appreciation/Depreciation During the Period 6,181,343 (14,406,399)
---------------- ----------------
Change in Net Assets from Operations 9,134,365 47,556,598
---------------- ----------------
Distributions from:
Net Investment Income (971,179) (2,779,489)
Net Realized Gain (20,161,961) (11,913,960)
---------------- ----------------
Total Distributions (21,133,140) (14,693,449)
---------------- ----------------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES (11,998,775) 32,863,149
---------------- ----------------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold 0 30,000,000
Net Asset Value of Shares Issued Through Dividend Reinvestment 21,133,140 14,693,449
Cost of Shares Repurchased 0 (213,753,951)
---------------- ----------------
NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS 21,133,140 (169,060,502)
---------------- ----------------
TOTAL INCREASE/DECREASE IN NET ASSETS 9,134,365 (136,197,353)
NET ASSETS:
Beginning of the Period 58,010,239 194,207,592
---------------- ----------------
End of the Period (Including accumulated undistributed net
investment income of $240,102 and $856,317, respectively) $ 67,144,604 $ 58,010,239
================ ================
See Notes to Financial Statements
12.
</TABLE>
<PAGE>
VAN KAMPEN AMERICAN CAPITAL SMALL CAPITALIZATION FUND
FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for one share
of the Fund outstanding throughout the periods indicated. (Unaudited)
<TABLE>
<CAPTION>
SIX MONTHS NOVEMBER 23, 1993
ENDED (COMMENCEMENT
APRIL OF INVESTMENT
30, YEAR ENDED OCTOBER 31, OPERATIONS) TO
1998 1997 1996 1995 (A) OCTOBER 31, 1994 (A)
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of the Period $ 16.695 $ 13.807 $ 12.17 $ 9.82 $ 10.00
---------- ---------- --------- ---------- ---------
Net Investment Income 0.077 0.546 0.197 0.17 0.21
Net Realized and Unrealized Gain 1.546 3.468 1.968 2.26 (0.37)
---------- ---------- --------- ---------- ---------
Total from Investment Operations 1.623 4.014 2.165 2.43 (0.16)
---------- ---------- --------- ---------- ---------
Less:
Distributions from Net Investment Income 0.280 0.213 0.133 0.08 0.02
Distributions from Net Realized Gain 5.802 0.913 0.395 0.00 0.00
---------- ---------- --------- ---------- ---------
Total Distributions 6.082 1.126 0.528 0.08 0.02
---------- ---------- --------- ---------- ---------
Net Asset Value, End of the Period $ 12.236 $ 16.695 $ 13.807 $ 12.17 $ 9.82
========== ========== ========= ========== =========
Total Return 15.75% * 31.34% 18.50% 25.00% 1.80% *
Net Assets at End of the Period (In millions) $67.1 $58.0 $194.2 $200.3 $20.7
Ratio of Expenses to Average Net Assets (b) 0.17% 0.11% 0.10% 0.08% 0.30%
Ratio of Net Investment Income to Average Net
Assets (b) 1.17% 1.34% 1.45% 1.59% 1.99%
Portfolio Turnover 11% * 47% 75% 85% 34% *
Average Commission Paid Per Equity
Share Traded (c) $0.0253 $0.0115 $0.0222 ---- ----
<FN>
(a) Based on average shares outstanding.
(b) For the period ended October 31, 1994 and the years ended October 31, 1995
through 1997, the impact on the Ratios of Expenses to Average Net Assets and Net
Investment Income to Average Net Assets due to VKAC's reimbursement of
certain expenses was less than 0.01%.
(c) Represents the average brokerage commission paid per equity share traded
during the period for trades where commissions were applicable. This disclosure
was not required in fiscal years prior to 1996.
* Non-Annualized
</FN>
13.
</TABLE>
<PAGE>
VAN KAMPEN AMERICAN CAPITAL SMALL CAPITALIZATION FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 1998 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
The Van Kampen American Capital Small Capitalization Fund (the "Fund) is
organized as a Delaware business trust, and is registered as a diversified
open-end management investment company under the investment Company Act of 1940,
as amended. The Fund's investment objective is to approximate the performance of
the small capitalization sector of the equities market by investing primarily in
common stocks of small capitalization companies. The Fund commenced investment
operations on November 23, 1993.
The following is a summary of the 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 listed or traded on a national securities
exchange are stated at value using market quotations as of 2:00PM Eastern
Standard Time. Unlisted and listed securities for which the last sale price at
2:00PM Eastern Standard Time is not available are valued at the last reported
bid price. 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 specific 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.
C. INVESTMENT INCOME - Dividend income is recorded on the ex-dividend date
and interest income is recorded on an accrual basis.
D. ORGANIZATIONAL COSTS - The Fund will reimburse Van Kampen American Capital
Distributors, Inc. or its affiliates ("collectively VKAC") for costs incurred in
connection with the Fund's organization in the amount of $62,000. These costs
are being amortized on a straight line basis over the 60 month period ending
October, 1998. The Adviser has agreed that in the event any of the initial
shares of the Fund originally purchased by VKAC are redeemed during the
amortization period, the Fund 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 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 and gains to
its shareholders. Therefore, no provision for federal income taxes is required.
At April 30, 1998, for federal income tax purposes cost of long- and
short-term investments is $42,479,625, the aggregate gross unrealized
appreciation is $26,582,768 and the aggregate gross unrealized depreciation is
$1,926,750, resulting in net unrealized appreciation of $24,656,018.
Net realized gains or losses may differ for financial and tax reporting
purposes as a result of the deferral of losses for tax purposes resulting from
wash sales.
F. DISTRIBUTION OF INCOME AND GAINS - The Fund declares and pays dividends
annually from net investment income and net realized gains on securities, if
any. Distributions from net realized gains for book purposes may include
short-term capital gains, which are included as ordinary income for tax
purposes.
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
The Adviser serves as the investment manager of the Fund, but receives no
compensation for its investment management services.
For the six months ended April 30, 1998, the Trust recognized expenses of
approximately $3,300 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 April 30, 1998, the Fund recognized expenses of
approximately $8,300, representing VKAC's cost of providing accounting services
to the Fund.
14.
<PAGE>
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
April 30, 1998, the Fund recognized expenses of approximately $7,500,
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 $2,500.
At April 30, 1998, the Fund was 100% owned by the Van Kampen American
Capital Pace Fund, which is an investment company advised by the Adviser.
3. CAPITAL TRANSACTIONS
The Fund is authorized to issue an unlimited number of shares of beneficial
interest with a par value of $.01 per share. Fund shares are only available
for purchase by Funds for which VKAC serves as investment adviser.
At April 30, 1998 and October 31, 1997, capital aggregated $39,667,860
and $18,534,720, respectively. Transactions in common shares were as follows:
SIX MONTHS YEAR ENDED
ENDED OCTOBER 31,
APRIL 30, 1998 1997
---------------- --------------
Beginning Shares 3,474,702 14,065,878
---------------- --------------
Shares Sold -0- 2,090,026
Shares Issued Through
Dividend Reinvestment 2,012,680 1,123,352
Shares Redeemed -0- (13,804,554)
--------------- --------------
Net Increase/Decrease in
Shares Outstanding 2,012,680 (10,591,176)
--------------- --------------
Ending Shares 5,487,382 3,474,702
=============== ==============
4. INVESTMENT TRANSACTIONS
During the period, the cost of purchases and proceeds from
sales of investments, excluding short-term investments, were
$7,115,764 and $6,831,734, respectively.
15.
<PAGE>
VAN KAMPEN AMERICAN CAPITAL
SMALL CAPITALIZATION FUND
- - ---------------------------------------------------------------------------
BOARD OF TRUSTEES INVESTMENT ADVISER
J. MILES BRANAGAN VAN KAMPEN AMERICAN CAPITAL
RICHARD M. DEMARTINI* ASSET MANAGEMENT, INC.
LINDA HUTTON HEAGY One Parkview Plaza
R. CRAIG KENNEDY Oakbrook Terrace, Illinois 60181
JACK E. NELSON
DON G. POWELL* DISTRIBUTOR
PHILIP B. ROONEY
FERNANDO SISTO VAN KAMPEN AMERICAN CAPITAL
WAYNE W. WHALEN* - Chairman DISTRIBUTORS, INC.
One Parkview Plaza
OFFICERS Oakbrook Terrace, Illinois 60181
DENNIS J. MCDONNELL* SHAREHOLDER SERVICING AGENT
President
ACCESS INVESTOR
RONALD A. NYBERG* SERVICES, INC.
Vice President and Secretary P.O. Box 418256
Kansas City, Missouri 64141-9256
EDWARD C. WOOD, III*
Vice President and Chief
Financial Officer CUSTODIAN
CURTIS W. MORELL*
Vice President and Chief STATE STREET BANK AND TRUST COMPANY
Accounting Officer 225 Franklin Street
P.O. Box 1713
JOHN L. SULLIVAN* Boston, Massachusetts 02105
Treasurer
LEGAL COUNSEL
TANYA M. LODEN*
Controller SKADDEN, ARPS, SLATE,
MEAGHER & FLOM (ILLINOIS)
333 West Wacker Drive
PETER W. HEGEL* Chicago, Illinois 60606
PAUL R. WOLKENBERG*
Vice Presidents 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
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 11
<NAME> VKAC SMALL CAP FUND
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-START> NOV-01-1997
<PERIOD-END> APR-30-1998
<INVESTMENTS-AT-COST> 42,421,438
<INVESTMENTS-AT-VALUE> 67,135,643
<RECEIVABLES> 52,666
<ASSETS-OTHER> 8,948
<OTHER-ITEMS-ASSETS> 3,677
<TOTAL-ASSETS> 67,200,934
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 56,330
<TOTAL-LIABILITIES> 56,330
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 39,667,860
<SHARES-COMMON-STOCK> 5,487,382
<SHARES-COMMON-PRIOR> 3,474,702
<ACCUMULATED-NII-CURRENT> 240,102
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,522,437
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 24,714,205
<NET-ASSETS> 67,144,604
<DIVIDEND-INCOME> 392,326
<INTEREST-INCOME> 13,779
<OTHER-INCOME> 0
<EXPENSES-NET> (51,141)
<NET-INVESTMENT-INCOME> 354,964
<REALIZED-GAINS-CURRENT> 2,598,058
<APPREC-INCREASE-CURRENT> 6,181,343
<NET-CHANGE-FROM-OPS> 9,134,365
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (971,179)
<DISTRIBUTIONS-OF-GAINS> (20,161,961)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 2,012,680
<NET-CHANGE-IN-ASSETS> 9,134,365
<ACCUMULATED-NII-PRIOR> 856,317
<ACCUMULATED-GAINS-PRIOR> 20,086,340
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 51,141
<AVERAGE-NET-ASSETS> 61,266,417
<PER-SHARE-NAV-BEGIN> 16.695
<PER-SHARE-NII> 0.077
<PER-SHARE-GAIN-APPREC> 1.546
<PER-SHARE-DIVIDEND> (0.280)
<PER-SHARE-DISTRIBUTIONS> (5.802)
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 12.236
<EXPENSE-RATIO> 0.17
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
|
|