<PAGE> 1
TABLE OF CONTENTS
<TABLE>
<S> <C>
Letter to Shareholders........................... 1
Economic Snapshot................................ 2
Performance Results.............................. 3
Portfolio Management Review...................... 4
Glossary of Terms................................ 7
Portfolio Highlights............................. 8
Portfolio of Investments......................... 10
Statement of Assets and Liabilities.............. 37
Statement of Operations.......................... 38
Statement of Changes in Net Assets............... 39
Financial Highlights............................. 40
Notes to Financial Statements.................... 43
</TABLE>
GMA SAR 8/99
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE.
<PAGE> 2
LETTER TO SHAREHOLDERS
July 20, 1999
Dear Shareholder,
With the volatility that we've experienced recently in many financial
markets, some investors have sold securities because of uncertainty about where
the markets were going, only to be left rethinking whether they made the right
decision. We've witnessed this kind of market activity numerous times over the
past several years, sparked by concerns such as the impact of the Asian economic
crisis, high stock valuations, or, most recently, the stability of many
high-flying technology companies. While these fears eventually subsided,
investors who may have sold during this period were unable to reap the benefits
of the subsequent rally. That's partly because most of the recent big gains
happened in relatively short periods of time. This kind of volatility--and the
danger of making short-term decisions--highlights the importance of investing
for the long term, in accordance with your individual financial objectives.
Although the worst of the Asian crisis appears to be behind us, new concerns
are always emerging. In the coming months, we'll likely hear more about how the
year 2000 computer problem may affect the markets or that we're overdue for a
correction. While the markets could undoubtedly suffer as a result of these or
any number of other events, we encourage you to focus on your long-term
investment goals. Although nothing is certain, history has shown us that over
time, the markets tend to recover--and most investors want to be positioned to
take advantage of any recovery.
If you have concerns about market volatility or questions about how your
portfolio is structured to respond to these events, we encourage you to contact
your financial advisor. Your advisor can talk with you about sustaining a
long-term investment plan through a variety of market conditions. We hope that
Van Kampen Funds will play an important role as you and your advisor build a
portfolio designed to help you weather what the markets have in store.
Sincerely,
[SIG]
Richard F. Powers, III
Chairman
Van Kampen Asset Management Inc.
[SIG]
Dennis J. McDonnell
President
Van Kampen Asset Management Inc.
1
<PAGE> 3
ECONOMIC SNAPSHOT
The strength of the domestic economy continued to defy expectations in the
first half of 1999, although it finally began to show signs of slowing down.
Strong growth, healthy employment, and low inflation all contributed to the
favorable economic environment.
STRONG ECONOMIC GROWTH
The nation's gross domestic product rose at an impressive rate of 4.3
percent during the first quarter of 1999, but fell to 2.3 percent in the second
quarter. The first-quarter expansion was fueled by an increase in consumer
spending, which dropped to more moderate levels later in the reporting period.
POSITIVE EMPLOYMENT ENVIRONMENT
In May, the unemployment rate dropped to 4.2 percent--its lowest level in
more than 30 years. Throughout the reporting period, unemployment remained low,
the number of jobs grew, and wages rose. The labor market remained especially
tight in the service industry and most urban areas.
LOW INFLATION
Inflation remained low throughout most of the reporting period, although a
sharp increase in oil prices contributed to a spike in April's consumer price
index report (CPI). Following this up-tick, the Federal Reserve raised interest
rates 0.25 percent on June 30. Although the Fed had expressed a bias toward a
series of rate increases, May's tame CPI report prompted it to drop this bias
when announcing the June rate increase.
ECONOMIC OUTLOOK
Our outlook for the economy suggests that the moderate slowdown may
continue, bringing the economy back to historically normal growth levels.
Healthy job growth, which has been supporting the consumer confidence and
spending levels, showed signs of faltering toward the end of the reporting
period. However, a renewed optimism for corporate earnings, low unemployment,
and a vibrant housing market should provide some balance against a slower job
growth rate.
INTEREST RATES AND INFLATION
June 30, 1997, through June 30, 1999
[GRAPH]
<TABLE>
<CAPTION>
INTEREST RATES INFLATION
-------------- ---------
<S> <C> <C>
Jun 1997 6.5000 2.3000
6.0000 2.2000
5.5000 2.2000
Sep 1997 6.2500 2.2000
5.7500 2.1000
5.6875 1.8000
Dec 1997 6.5000 1.7000
5.5625 1.6000
5.6250 1.4000
Mar 1998 6.1250 1.4000
5.6250 1.4000
5.6875 1.7000
Jun 1998 6.0000 1.7000
5.5625 1.7000
5.9375 1.6000
Sep 1998 5.7500 1.5000
5.2500 1.5000
4.8750 1.5000
Dec 1998 4.0000 1.6000
4.8125 1.7000
4.8750 1.6000
Mar 1999 5.1250 1.7000
4.9375 2.3000
4.5000 2.1000
Jun 1999 4.0000 2.0000
</TABLE>
Interest rates are represented by the closing midline federal funds rate
on the last day of each month. Inflation is indicated by the annual
percent change of the Consumer Price Index for all urban consumers at
the end of each month.
2
<PAGE> 4
PERFORMANCE RESULTS FOR THE PERIOD ENDED JUNE 30, 1999
VAN KAMPEN GLOBAL MANAGED ASSETS FUND
<TABLE>
<CAPTION>
A Shares B Shares C Shares
<S> <C> <C> <C>
TOTAL RETURNS
Six-month total return based on NAV(1)... 1.14% .68% .88%
Six-month total return(2)................ (3.71%) (3.23%) (0.10%)
One-year total return(2)................. (0.50%) 0.03% 2.91%
Five year total return(2)................ 9.04% 8.96% 9.24%
Life-of-Fund average annual total
return(2)................................ 8.58% 8.71% 8.78%
Commencement date........................ 05/16/94 05/16/94 05/16/94
</TABLE>
(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).
See the Comparative Performance section of the current prospectus. There is no
assurance the Fund will achieve its investment objective. Investing in
international markets involves certain risks not typically associated with
investing solely in the United States, including fluctuations in currency rates,
withholding tax, restrictions on foreign investment and on repatriation of
capital, limited publicly available information, less governmental supervision
and regulation, less liquidity, and the potential for market volatility and
political and economic instability. Please read the Fund's prospectus and
"Foreign Investment" in the Additional Investment Information section for more
detailed information on global investing. Fund shares, when redeemed, may be
worth more or less than their original cost. Past performance does not guarantee
future results. Investment return and net asset value will fluctuate with market
conditions.
Market forecasts provided in this report may not necessarily come to pass.
3
<PAGE> 5
PORTFOLIO MANAGEMENT REVIEW
VAN KAMPEN GLOBAL MANAGED ASSETS FUND
We recently spoke with the management team of the Van Kampen Global Managed
Assets Fund about the key events and economic forces that shaped the markets
during the past six months. The team is led by portfolio managers Barton M.
Biggs, J. David Germany, Michael B. Kushma, Paul E. O'Brien, and Anne D.
Thivierge of Morgan Stanley Dean Witter Investment Management.
Since 1997, Mr. Biggs and Ms. Thivierge have managed the equity portion of the
Fund's portfolio, while Mr. Germany, Mr. Kushma, and Mr. O'Brien have managed
the fixed-income portion. The following excerpts reflect their views on the
Fund's performance during the six-month period ended June 30, 1999.
Q HOW WOULD YOU DESCRIBE THE INVESTMENT ENVIRONMENT IN WHICH THE FUND
OPERATED DURING THE PAST SIX MONTHS?
A Global economic recovery became the story of the first half of 1999, as
economic activity increased in most regions of the world. The U.S. economy
resumed its impressive climb with strong growth and minimal inflation.
Meanwhile, declining interest rates and a focus on corporate cost-cutting fiscal
reforms helped revive many emerging markets, particularly in Asia.
In Europe, the introduction of the euro went smoothly, but economic
weakness, particularly in Germany, contributed to its decline since January.
Decreased exports to Asia, Russia, and Eastern European countries led to lower
economic growth and falling corporate earnings.
Q WHAT WAS YOUR ASSET ALLOCATION BREAKDOWN?
A Our asset allocation of stocks, bonds, and cash is based on market
conditions. At the beginning of the period, the allocation was 66 percent
equities and 34 percent fixed-income instruments. On June 30, 1999, the
allocation was 69 percent equities and 31 percent fixed-income instruments.
Q WHAT STRATEGIES DID YOU PURSUE IN THE EQUITY PORTION OF THE PORTFOLIO?
A Throughout the period, we remained underweighted in the United States
because stock valuations appeared high. This strategy hindered performance
as the U.S. economy continued its strong growth. Finally, our positions in
the peripheral European economies, including Italy, Spain, and Portugal, helped
the Fund's performance.
Early in the year we visited Singapore, Hong Kong, and Japan to talk with
government officials, central bankers, businesses, and other investors. Although
these meetings reinforced our belief that Asia and Japan have a long way to go
in their recoveries, we believe their commitment to restructure their economies
could lead to a long-lasting recovery in profitability and stock prices. In
addition, we were impressed with Singapore's fervor for restructuring and
belt-tightening and, as a result, significantly increased the Fund's exposure to
that country.
4
<PAGE> 6
Another country we overweighted was Australia, which like Singapore, did a
good job of weathering the financial downturn in Asia. Australia has had
fantastic economic growth and we believe the sound government policies and
restructured labor markets should be a long-term positive.
Q WHAT STRATEGIES DID YOU PURSUE IN THE FIXED-INCOME PORTION OF THE
PORTFOLIO?
A In the first quarter of 1999, we focused on Japan in order to take
advantage of high volatility in that market. During February we increased
our exposure to Japan as interest rates rose to the 2 percent range. At
the same time we reduced our exposure to the yen but recaptured that exposure
following the Bank of Japan's announcement of a fiscal stimulus package. In
addition, we sold our New Zealand government bonds after they appreciated in
price.
We were surprised by the continued weakness of the European economy at a
time when the U.S. economy was strong. We anticipated that Russia's problems
would cause some weakness in Europe's household consumer sector, but we did not
anticipate the severity of the slowdown in the industrial and manufacturing
sectors.
As expected, Europe's transition since the introduction of the euro on
January 1, 1999, has gone smoothly. The only negative has been the weakness of
the new currency. During the first half of 1999, the euro decreased in value
relative to the U.S. dollar and the Japanese yen, which hurt the Fund's return.
For additional Fund portfolio highlights, please refer to page 8.
Q HOW DID THE FUND PERFORM DURING THE REPORTING PERIOD?
A The Fund's disappointing returns were the result of our underweighted
position in the United States in the equity portion of the portfolio and
significant exposure to the euro in the fixed-income portion. The Fund
achieved a total return of 1.14 percent(1) (Class A shares at net asset value)
for the six-month period ended June 30, 1999. By comparison, the Morgan Stanley
Capital International (MSCI) World Index generated a total return of 7.90
percent and the J.P. Morgan Global Traded Government Index achieved a total
return of -13.87 percent. Past performance does not guarantee future results.
The MSCI World Index is a broad-based index that is used as a benchmark to
general equity funds. The J.P. Morgan Global Traded Government Index is a
broad-based index of major foreign and U.S. government bonds that are weighted
by the total market value of each country's securities and reflect variations in
currency value. Keep in mind that these indices are broad-based statistical
composites and do not reflect any commissions or sales charges that would be
paid by an investor purchasing the securities they represent. Please refer to
the chart and footnotes on page 3 for additional Fund performance results.
Q WHAT IS YOUR OUTLOOK FOR THE GLOBAL EQUITY MARKETS AND THE FUND'S
PORTFOLIO IN THE MONTHS AHEAD?
A In the short term, we remain cautious on the United States because of high
stock valuations and Europe because of full valuations and inconsistent
economic
5
<PAGE> 7
performance. As a result, the risk of policy mistakes within Europe is great,
and the challenge facing the European Central Bank will be difficult. Japan's
economy, although bottoming, faces large obstacles as unemployment rises and the
fiscal spending proposal diminishes. We are optimistic that additional
restructuring should increase corporate earnings.
In the rest of Asia, we look for improvements in Australia and Singapore to
continue, but we will monitor China carefully. In the long-term, we believe
China will succeed, but in the short term we are unsure whether it will devalue
its currency, and the government's commitment to maintaining its unproductive
state-owned enterprise system is troubling. Overall, we have positioned the
portfolio to be less defensive than it was during the volatile third quarter of
1998, and have reduced our cash holdings as a result.
Q WHAT IS YOUR OUTLOOK FOR FIXED-INCOME MARKETS?
A Because of the recent sell-off of global markets during April and May,
interest rates have risen sharply and the market is concerned about an
inflationary upswing in the U.S. economy. As expected, the Federal Reserve
Board raised interest rates at the end of the period, but surprised the market
by abandoning its tightening bias.
Until the extent to which the Fed will raise interest rates becomes clear,
bond markets will remain unstable. For global bond markets, a slowdown in the
United States would be a welcome development. Two factors, however, have
significantly helped bonds, attractive yields after the global bond sell-off,
and attractive yield curves in Europe. In Europe, we will concentrate our
holdings in what we believe are the most creditworthy countries -- Germany and
France. In addition, among countries not participating in European economic and
monetary union, we will look for value in Swedish and Danish bonds. There should
be opportunities to take advantage of the difference in interest rates between
these countries and EMU participants, and we expect these countries to join the
next wave of monetary union and thus comply with the expected standards of EMU.
[SIG]
Barton M. Biggs
Portfolio Manager
[SIG]
Michael B. Kushma
Portfolio Manager
[SIG]
J. David Germany
Portfolio Manager
[SIG]
Ann D. Thivierge
Portfolio Manager
[SIG]
Paul E. O'Brien
Portfolio Manager
6
<PAGE> 8
GLOSSARY OF TERMS
BOND: A debt security issued by a government or corporation that pays a
bondholder a stated rate of interest and repays the principal at the
maturity date.
CLASS A SHARES: When Class A shares of a fund are purchased, the share price
includes the net asset value plus a one-time sales charge (or "load"). In
most cases, there is no redemption fee (contingent deferred sales charge).
DEFENSIVE INVESTMENT STRATEGY: A method of portfolio allocation and management
aimed at minimizing the risk of losing principal. Defensive investors place
a high percentage of their investable assets in bonds, cash equivalents, and
stocks that are less volatile than average.
EARNINGS ESTIMATES: A forecast for a company's net income during a given period.
Earnings estimates can come from the company's management as well as from
independent analysts.
EMERGING MARKETS: The financial markets of developing economies. Many Latin
American and Asian countries are considered emerging markets.
EUROPEAN MONETARY UNION (EMU): A group of European countries creating one
currency for the entire region.
FEDERAL RESERVE BOARD (THE FED): The governing body of the Federal Reserve
System, which is the central bank of the United States. Its policy-making
committee, called the Federal Open Market Committee, meets eight times a
year to establish monetary policy and monitor the economic pulse of the
United States.
NET ASSET VALUE (NAV): The value of a mutual fund share, calculated by deducting
a fund's liabilities from the total assets in its portfolio and dividing
this amount by the number of shares outstanding. The NAV does not include
any initial or contingent deferred sales charge.
VALUATION: The estimated or determined worth of a stock, based on financial
measures such as the stock's current price relative to earnings, revenue,
book value, and cash flow.
VOLATILITY: A measure of the fluctuation in the market price of a security. A
security that is volatile has frequent and large swings in price.
7
<PAGE> 9
PORTFOLIO HIGHLIGHTS
VAN KAMPEN GLOBAL MANAGED ASSETS FUND
TOP FIVE PORTFOLIO HOLDINGS AS OF JUNE 30, 1999*
<TABLE>
<S> <C>
United States Treasury Bond, 6.250% Coupon, 08/15/23
Maturity ........................................... 3.7%
United States Treasury Notes, 6.250% Coupon, 10/31/01
Maturity ........................................... 2.6%
United States Treasury Notes, 7.250% Coupon, 05/15/04
Maturity ........................................... 2.5%
United States Treasury Bond, 12.000% Coupon, 05/15/02
Maturity ........................................... 2.4%
Microsoft Corp. ...................................... 1.7%
</TABLE>
TOP FIVE EQUITY HOLDINGS AS OF JUNE 30, 1999*
<TABLE>
<S> <C>
MICROSOFT develops, manufactures, licenses, and
supports a range of software products................. 1.7%
GENERAL ELECTRIC is a diversified industrial
corporation whose products include appliances,
lighting products, aircraft engines, and plastics..... 1.3%
CISCO SYSTEMS provides networking solutions that
connect computing devices and computer networks....... 0.9%
LATIN AMERICAN DISCOVERY FUND, INC. is a closed-end
fund that invests a majority of its assets in Latin
American securities................................... 0.9%
NIPPON TELEGRAPH & TELEPHONE provides
telecommunications services in Japan, including
telephone and telegraph services, ISDN services, and
equipment sales....................................... 0.9%
</TABLE>
* As a percentage of long-term investments
8
<PAGE> 10
PORTFOLIO HIGHLIGHTS (CONTINUED)
VAN KAMPEN GLOBAL MANAGED ASSETS FUND
TOP FIVE COUNTRIES AS A PERCENTAGE OF LONG-TERM INVESTMENTS
[BAR GRAPH]
<TABLE>
<CAPTION>
JUNE 30, 1999 DECEMBER 31, 1998
------------- -----------------
<S> <C> <C>
United States 52.5 47.1
United Kingdom 10.4 12.6
Japan 10.1 7.7
France 4.1 6.2
Italy 3.5 3.2
</TABLE>
ASSET ALLOCATION AS A PERCENTAGE OF TOTAL INVESTMENTS
[BAR GRAPH]
<TABLE>
<CAPTION>
JUNE 30, 1999 DECEMBER 31, 1998
------------- -----------------
<S> <C> <C>
Common and Preferred Stocks 69.2 65.5
Commercial Paper 12.6 1.2
Government Obligations 8.8 18.4
Repurchase Agreements 5.4 7.2
U.S. Government Agency Obligations 4.0 7.7
</TABLE>
9
<PAGE> 11
PORTFOLIO OF INVESTMENTS
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Shares Market Value
- -----------------------------------------------------------------------------------
<S> <C> <C>
COMMON AND PREFERRED STOCKS AND EQUIVALENTS 69.9%
AUSTRALIA 1.9%
Amcor, Ltd.............................................. 967 $ 5,368
AMP, Ltd................................................ 1,393 15,209
Australian Gas & Light Co., Ltd......................... 562 3,414
Boral, Ltd.............................................. 1,408 2,383
Brambles Industries, Ltd................................ 325 8,551
Broken Hill Proprietary Co., Ltd........................ 2,969 34,347
Coca-Cola Amati, Ltd.................................... 1,409 5,671
Coles Myer, Ltd......................................... 1,648 9,576
Colonial, Ltd. (a)...................................... 1,334 4,718
CSL, Ltd................................................ 158 1,362
CSR, Ltd................................................ 1,519 4,338
Email, Ltd.............................................. 473 840
FH Faulding & Co., Ltd.................................. 161 979
Fosters Brewing Group, Ltd.............................. 2,627 7,394
General Property Trust.................................. 2,030 3,296
GIO Australia Holding................................... 1,004 2,442
Goodman Fielder, Ltd.................................... 1,599 1,424
Leighton Holdings, Ltd.................................. 377 1,470
Lend Lease Corp......................................... 795 10,901
Mayne Nickless, Ltd..................................... 545 1,863
National Australia Bank, Ltd............................ 1,964 32,458
News Corp., Ltd......................................... 2,789 23,765
News Corp., Ltd. - Preferred Shares..................... 2,470 18,794
Normandy Mining, Ltd.................................... 2,835 1,885
North, Ltd.............................................. 1,262 2,553
Orica, Ltd.............................................. 360 1,964
Pacific Dunlop, Ltd..................................... 1,594 2,297
Pioneer International, Ltd.............................. 1,372 3,492
Publishing & Broadcasting, Ltd.......................... 164 1,082
QBE Insurance Group, Ltd................................ 492 1,870
Rio Tinto, Ltd.......................................... 334 5,469
Santos, Ltd............................................. 896 2,932
</TABLE>
See Notes to Financial Statements
10
<PAGE> 12
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Shares Market Value
- -----------------------------------------------------------------------------------
<S> <C> <C>
AUSTRALIA (CONTINUED)
Schroders Property Fund................................. 673 $ 1,046
Smith Howard............................................ 297 2,268
Southcorp Holdings, Ltd................................. 946 3,815
Stockland Trust Group (a)............................... 12 27
Stockland Trust Group................................... 366 835
Suncorp Metway.......................................... 470 2,796
TAB Corp. Holdings, Ltd................................. 484 3,257
Telstra Corp., Ltd...................................... 7,173 41,049
Wesfarmers, Ltd......................................... 281 2,526
Westfield Trust (a)..................................... 40 80
Westfield Trust......................................... 1,906 3,853
Westpac Banking Corp., Ltd.............................. 2,698 17,478
WMC, Ltd................................................ 2,675 11,476
Woolworths, Ltd......................................... 1,713 5,690
-----------
320,303
-----------
AUSTRIA 0.9%
Austria Tabakwerke, AG.................................. 149 8,678
Austrian Airlines....................................... 199 4,800
Bank Austria, AG........................................ 711 37,380
Bau Holdings, AG........................................ 31 991
BBAG Oest Brau-Beteiligungs, AG......................... 59 2,615
Bohler-Uddeholm, AG - ADR............................... 73 3,611
BWT, AG................................................. 11 2,084
Flughafen Wien, AG...................................... 142 5,956
Generali, AG............................................ 47 8,624
Lenzing, AG............................................. 26 1,474
Mayr Melnhof Karton, AG................................. 80 3,629
Oest Elektrizitats, Class A............................. 204 29,693
OMV, AG................................................. 174 15,514
RHI, AG................................................. 93 2,517
VA Technologie, AG...................................... 94 8,513
Wienerberger Baustoffindustrie, AG...................... 456 11,803
-----------
147,882
-----------
</TABLE>
See Notes to Financial Statements
11
<PAGE> 13
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Shares Market Value
- -----------------------------------------------------------------------------------
<S> <C> <C>
CANADA 1.4%
Abitibi Consolidated, Inc............................... 200 $ 2,295
Agnico-Eagle Mines, Ltd................................. 700 4,326
Alberta Energy Co., Ltd................................. 100 3,212
Alcan Aluminum.......................................... 200 6,350
Bank of Montreal........................................ 200 7,267
Bank of Nova Scotia..................................... 300 6,520
Barrick Gold Corp....................................... 200 3,857
Barrick Gold Corp. - US$................................ 200 3,875
BCE, Inc................................................ 400 19,491
BCT.Telus Communications, Inc........................... 58 1,394
BCT.Telus Communications, Inc. - Non Voting Shares...... 19 450
Bombardier, Inc., Class B............................... 500 7,640
Canadian Hunter Exploration, Ltd. (a)................... 50 754
Canadian Imperial Bank of Commerce...................... 200 4,767
Canadian Occidental Petroleum........................... 100 1,613
Canadian Pacific........................................ 200 4,754
Gulf Canada Resource (a)................................ 500 2,071
Imasco, Ltd............................................. 300 8,088
Imperial Oil, Ltd....................................... 400 7,606
International Forest Products, Ltd., Class A (a)........ 500 1,902
Laidlaw, Inc............................................ 200 1,453
National Bank of Canada................................. 100 1,311
Newbridge Networks Corp. (a)............................ 100 2,852
Nexfor, Inc............................................. 87 538
Noranda, Inc............................................ 200 2,635
Nortel Networks Corp.................................... 400 34,227
Nortel Networks Corp. - US$............................. 300 26,044
Petro CDA............................................... 300 4,095
Placer Dome, Inc........................................ 200 2,323
Power Corp. of Canada................................... 200 3,830
Royal Bank of Canada.................................... 200 8,829
Seagram Co., Ltd........................................ 200 9,963
Seagram Co., Ltd. - US$................................. 200 10,075
</TABLE>
See Notes to Financial Statements
12
<PAGE> 14
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Shares Market Value
- -----------------------------------------------------------------------------------
<S> <C> <C>
CANADA (CONTINUED)
Suncor Energy, Inc...................................... 100 $ 4,098
Talisman Energy, Inc. (a)............................... 100 2,720
Thomson Corp............................................ 400 12,088
TransCanada PipeLines, Ltd.............................. 564 7,948
Weston George, Ltd...................................... 100 4,414
-----------
237,675
-----------
FRANCE 3.3%
Accor, SA............................................... 42 10,542
Air Liquide............................................. 74 11,633
Alcatel Alsthom, SA..................................... 125 17,589
AXA-UAP................................................. 251 30,609
Banque Nationale de Paris............................... 184 15,326
Banque Paribas.......................................... 58 6,499
Canal Plus.............................................. 27 7,573
Cap Gemini.............................................. 51 8,012
Carrefour, SA........................................... 186 27,323
CIE Fonciere Klepierre (a).............................. 160 15,009
Compagnie de Saint Gobain............................... 82 13,060
Elf Aquitaine, SA....................................... 190 27,871
France Telecom.......................................... 672 50,743
Groupe Danone........................................... 75 19,328
L'Oreal................................................. 41 27,705
Lafarge, SA............................................. 102 9,695
Legrand, SA............................................. 24 4,884
LVMH (Moet Hennessy Louis Vuitton)...................... 79 23,120
LVMH (Moet Hennssey Louis Vuitton)...................... 79 2,309
Michelin (CGDE), Class B................................ 144 5,889
Pernod Ricard........................................... 57 3,819
Peugeot Citroen......................................... 50 7,886
Pinault-Printemps-Redoute, SA........................... 87 14,923
Promodes................................................ 20 13,123
Rhone-Poulenc, SA....................................... 281 12,835
Sagem, SA............................................... 4 2,672
</TABLE>
See Notes to Financial Statements
13
<PAGE> 15
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Shares Market Value
- -----------------------------------------------------------------------------------
<S> <C> <C>
FRANCE (CONTINUED)
Sanofi, SA (a).......................................... 348 $ 14,762
Schneider, SA........................................... 117 6,567
Silic................................................... 30 4,710
Simco................................................... 258 21,809
Societe Fonciere Lyonnaise.............................. 70 9,958
Societe Generale........................................ 76 13,389
Sodexho Alliance........................................ 26 4,476
Suez Lyonnaise des Eaux................................. 118 21,275
Thomson CSF............................................. 127 4,412
Total, SA, Class B (a).................................. 190 24,502
Unibail, SA............................................. 178 22,771
Vivendi (a)............................................. 273 22,106
-----------
560,714
-----------
GERMANY 2.0%
Adidas Salomon, AG...................................... 17 1,687
AGIV, AG................................................ 67 1,518
Allianz, AG (Vinkulierte Regd).......................... 158 43,813
AMB AACH & Mun Bet (Vinkulierte Regd)................... 50 5,077
AXA Colonia Konzern, AG................................. 33 3,164
BASF, AG................................................ 267 11,794
Bayer Hypo Vereinsbank, AG.............................. 215 13,963
Bayer, AG............................................... 250 10,411
Bilfinger & Berger...................................... 17 420
Continental, AG......................................... 17 403
DaimlerChrysler, AG (a)................................. 452 39,139
Degussa, AG (a)......................................... 17 701
Deutsche Bank, AG....................................... 250 15,244
Deutsche Telekom, AG.................................... 936 39,270
Deutz, AG............................................... 33 224
Dresdner Bank, AG....................................... 233 9,103
Fag Kugelfischer........................................ 17 172
Heidelberg Zement....................................... 33 2,721
Hochtief, AG............................................ 83 3,816
</TABLE>
See Notes to Financial Statements
14
<PAGE> 16
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Shares Market Value
- -----------------------------------------------------------------------------------
<S> <C> <C>
GERMANY (CONTINUED)
Lufthansa, AG (Vinkulierte Regd)........................ 83 $ 1,504
Man, AG - Preferred Shares.............................. 250 5,670
Mannesmann, AG.......................................... 200 29,833
Merck KGaA.............................................. 50 1,626
Metro, AG............................................... 117 7,261
Preussag, AG............................................ 120 6,445
RWE, AG................................................. 247 11,430
SAP, AG................................................. 67 22,654
Schering, AG............................................ 67 7,100
Siemens, AG............................................. 267 20,588
Veba, AG................................................ 233 13,691
Viag, AG................................................ 17 8,026
Volkswagen, AG.......................................... 50 3,201
-----------
341,669
-----------
HONG KONG 0.0%
Dickson Concepts International, Ltd..................... 500 355
Hong Kong & China Gas Co. - Warrants (a)................ 600 97
Hong Kong Land Holding - US$ (a)........................ 1,264 2,048
-----------
2,500
-----------
ITALY 2.7%
Alitalia, SpA........................................... 2,172 5,642
Assicurazioni Generali.................................. 1,499 51,920
Banca Commerciale Italiana.............................. 2,596 18,947
Banco Ambrosiano Veneto, SpA............................ 3,751 18,019
BCA Pop Di Milano....................................... 547 4,223
Benetton Group, SpA..................................... 2,495 4,912
Burgo (Cartiere), SpA................................... 118 757
Credito Italiano........................................ 6,572 28,860
Edison, SpA............................................. 1,016 8,798
Ente Nazionale Idrocarburi, SpA......................... 11,514 68,723
Fiat, Di Risp, SpA...................................... 1,464 2,498
Fiat, Priv, SpA......................................... 1,915 3,070
Fiat, SpA............................................... 6,266 19,830
</TABLE>
See Notes to Financial Statements
15
<PAGE> 17
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Shares Market Value
- -----------------------------------------------------------------------------------
<S> <C> <C>
ITALY (CONTINUED)
Impregilo, SpA.......................................... 595 $ 502
Instituto Nazionale delle Assicurazioni (INA)........... 5,701 13,223
Italcementi, SpA........................................ 224 2,840
Italcementi, Di Risp, SpA............................... 325 1,628
Italgas, SpA............................................ 704 2,954
La Rinascente, SpA...................................... 336 2,542
Magneti Marelli......................................... 707 937
Mediaset, SpA........................................... 1,767 15,701
Mediobanca, SpA......................................... 968 10,128
Montedison, SpA......................................... 2,964 4,828
Montedison, SpA......................................... 1,014 1,176
Oliveti, SpA - Rights expiring 07/09/99................. 3,111 418
Olivetti, SpA........................................... 3,111 7,472
Parmalat Finanziara, SpA................................ 2,598 3,401
Pirelli, SpA............................................ 3,114 8,475
Reno de Medici, Spa..................................... 172 410
Riunione Adriatica di Sicurta, SpA...................... 719 6,982
Sao Paolo Imi, SpA (a).................................. 2,002 27,242
Sirti, SpA.............................................. 465 2,243
Snia, SpA............................................... 1,250 1,566
Societa Assicuratrice Industriale....................... 219 2,258
Telecom Italia Mob, Di Risp, SpA........................ 965 5,232
Telecom Italia Mob, SpA................................. 3,507 36,441
Telecom Italia, SpA..................................... 6,468 38,605
Telecom Italia, Di Risp, SpA............................ 1,529 5,627
Unione Immobiliare, SpA (a)............................. 77,283 34,257
-----------
473,287
-----------
JAPAN 7.9%
Ajinomoto Co., Inc...................................... 1,000 11,408
Asahi Bank, Ltd......................................... 1,900 9,110
Asahi Chemical Industry Co.............................. 2,800 15,531
Asahi Glass Co.......................................... 3,800 24,659
Bank of Tokyo........................................... 5,200 74,065
</TABLE>
See Notes to Financial Statements
16
<PAGE> 18
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Shares Market Value
- -----------------------------------------------------------------------------------
<S> <C> <C>
JAPAN (CONTINUED)
Bridgestone Corp........................................ 1,000 $ 30,255
Dai Nippon Printing..................................... 1,800 28,792
Daiei, Inc.............................................. 2,000 6,845
Daiwa House Industries.................................. 1,000 10,523
Daiwa Securities........................................ 2,400 15,872
Fanuc................................................... 600 32,239
Fuji Bank............................................... 2,600 18,140
Fujitsu................................................. 3,000 60,387
Hitachi................................................. 4,800 45,036
Honda Motor Co.......................................... 1,000 42,407
Japan Air Lines Co...................................... 2,000 6,613
Japan Energy Corp....................................... 1,000 1,174
Kajima Corp............................................. 1,000 3,637
Kansai Electric Power................................... 1,500 28,520
Kao Corp................................................ 1,000 28,106
Kawasaki Steel Corp..................................... 1,000 1,868
Kirin Brewery Co........................................ 2,800 33,562
Kubota Corp............................................. 2,800 8,379
Kumagai Gumi Co......................................... 1,000 1,116
Kyocera Corp............................................ 400 23,477
Marubeni Corp........................................... 8,800 18,405
Matsushita Electric Industries.......................... 3,000 58,279
Mitsubishi Chemical..................................... 2,800 9,698
Mitsubishi Corp......................................... 1,000 6,779
Mitsubishi Electric Corp................................ 800 3,075
Mitsubishi Estate....................................... 2,800 27,336
Mitsubishi Heavy Industries............................. 3,000 12,177
Mitsubishi Trust & Banking Corp......................... 1,000 9,721
Mitsui Fudosan Co., Ltd................................. 2,000 16,202
Mitsui Trust & Banking Co............................... 4,800 7,658
Mitsukoshi.............................................. 2,000 8,696
NEC Corp................................................ 2,000 24,882
Nippon Express Co....................................... 1,800 10,788
</TABLE>
See Notes to Financial Statements
17
<PAGE> 19
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Shares Market Value
- -----------------------------------------------------------------------------------
<S> <C> <C>
JAPAN (CONTINUED)
Nippon Oil Co........................................... 1,000 $ 4,216
Nippon Steel Corp....................................... 4,800 11,150
Nippon Telegraph & Telephone Corp....................... 11 128,214
Nissan Fire & Marine Insurance.......................... 700 2,199
Nissan Motor Co......................................... 800 3,822
NKK Corp................................................ 6,000 4,910
Nomura Securities....................................... 2,400 28,113
Odakyu Electric Railway................................. 6,000 20,088
Osaka Gas Co............................................ 4,000 13,590
Sakura Bank............................................. 1,800 6,830
Sanwa Bank.............................................. 1,000 9,845
Sega Enterprises........................................ 400 5,294
Sekisui Chemical Co..................................... 1,000 5,803
Sekisui House........................................... 800 8,637
Shimizu Corp............................................ 2,800 10,925
Softbank Corp........................................... 10 2,026
Sony Corp............................................... 400 43,151
Sumitomo Bank, Ltd...................................... 2,000 24,816
Sumitomo Chemical....................................... 2,000 9,176
Sumitomo Corp........................................... 1,000 7,316
Sumitomo Metal Mining Co................................ 1,000 4,133
Taisei Corp............................................. 4,800 10,555
Takeda Chemical Industries.............................. 2,000 92,750
Tobu Railway Co......................................... 2,800 7,939
Tokyo Gas Co............................................ 4,800 11,824
Tokyo Marine & Fire Insurance Co........................ 2,800 30,437
Tokyu Corp.............................................. 2,000 5,043
Toray Industries, Inc................................... 2,000 10,019
Tostem Corp............................................. 500 9,610
Toyota Motor Corp....................................... 1,800 56,989
Yasuda Trust & Banking.................................. 700 874
-----------
1,365,711
-----------
</TABLE>
See Notes to Financial Statements
18
<PAGE> 20
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Shares Market Value
- -----------------------------------------------------------------------------------
<S> <C> <C>
NETHERLANDS 1.9%
ABN AMRO Holdings, NV................................... 1,067 $ 23,098
AEGON, NV............................................... 383 27,775
Ahold Koninklijke, NV................................... 403 13,876
Akzo Nobel, NV.......................................... 92 3,869
Buhrmann, NV............................................ 246 3,969
Elsevier, NV............................................ 189 2,192
Hagemeyer, NV........................................... 94 3,072
Heineken, NV............................................ 194 9,929
ING Groep, NV........................................... 766 41,456
KLM Royal Dutch Air Lines, NV........................... 102 2,886
Kon KPN, NV............................................. 404 18,949
Philips Electronics, NV................................. 249 24,583
Royal Dutch Petroleum Co................................ 1,565 91,634
TNT Post Groep, NV...................................... 408 9,737
Unilever, NV............................................ 416 28,024
Unilever, NV - Preferred Shares (a)..................... 466 2,498
Vedior, NV.............................................. 95 1,616
Wolters Kluwer, NV...................................... 388 15,439
-----------
324,602
-----------
PORTUGAL 1.2%
BCO Comercial Portugues, SA............................. 1,197 31,009
BCO Espirito Santo e Comercial de Lisboa................ 500 11,628
BPI-SGPS, SA............................................ 500 10,489
BPI-SGPS, SA Provisional Certificates................... 166 3,482
Brisa-Auto Estradas de Portugal, SA..................... 300 12,370
Cimpor-Cimentos de Portugal............................. 500 12,886
Corticeira Amorim SGPS, SA.............................. 100 995
Elec De Portugal........................................ 3,100 55,796
Jeronimo Martins, SPGS, SA.............................. 400 13,207
Portucel Industrial-Empresa Produtora de Celulose....... 500 2,747
Portugal Telecom, SA.................................... 2,200 44,734
Soares Da Costa, SA..................................... 100 313
</TABLE>
See Notes to Financial Statements
19
<PAGE> 21
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Shares Market Value
- -----------------------------------------------------------------------------------
<S> <C> <C>
PORTUGAL (CONTINUED)
Sonae Investimentos..................................... 300 $ 10,199
UNICER-Uniao Cervejeira, SA............................. 300 5,876
-----------
215,731
-----------
SINGAPORE 1.2%
City Developments, Ltd.................................. 2,000 12,808
Creative Technologies Corp.............................. 200 2,609
Cycle & Carriage, Ltd................................... 1,000 5,758
DBS Land, Ltd........................................... 2,000 3,995
Development Bank of Singapore........................... 2,000 24,442
Fraser & Neave, Ltd..................................... 1,000 4,436
Keppel Corp., Ltd....................................... 2,000 6,816
NatSteel, Ltd........................................... 2,000 3,502
Neptune Orient Lines, Ltd............................... 2,537 3,100
Overseas Chinese Bank................................... 2,000 16,686
Parkway Holdings, Ltd................................... 2,000 4,935
Sembcorp Industries, Ltd. (a)........................... 5,000 7,932
Singapore Airlines, Ltd................................. 2,000 19,036
Singapore Press Holdings, Ltd........................... 1,000 17,039
Singapore Tech Engineering.............................. 8,000 9,072
Singapore Telecommunications............................ 17,000 29,166
United Industrial Corp., Ltd............................ 5,000 3,378
United Overseas Bank, Ltd............................... 2,000 13,984
United Overseas Land, Ltd............................... 2,000 2,256
Venture Manufacturing (Singapore), Ltd.................. 1,000 7,697
-----------
198,647
-----------
SPAIN 1.4%
Acerinox, SA............................................ 48 1,403
Argentaria Corp......................................... 488 11,092
Autopistas Cesa......................................... 300 3,510
Autopistas Cesa - Rights................................ 300 173
Azucarera Ebro Agr...................................... 83 1,325
BCO Bilbao Vizcaya, SA.................................. 1,756 25,361
BCO Santander Central Hispanoamericano (a).............. 2,824 29,402
</TABLE>
See Notes to Financial Statements
20
<PAGE> 22
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Shares Market Value
- -----------------------------------------------------------------------------------
<S> <C> <C>
SPAIN (CONTINUED)
Corporacion Mapfre, SA.................................. 136 $ 2,769
Empresa Nacional de Celulosas, SA....................... 48 856
Endesa, SA.............................................. 855 18,227
Fomento Construcciones y Contratas, SA.................. 75 4,291
Gas Natural SDG, SA..................................... 96 6,977
Iberdrola, SA........................................... 926 14,089
Metrovacesa, SA......................................... 803 15,860
Prima Inmobiliaria, SA.................................. 840 6,486
Repso, SA............................................... 903 18,571
Tabacalera, SA, Class A................................. 183 3,697
Telefonica, SA (a)...................................... 900 43,447
TelePizza, SA (a)....................................... 215 1,113
Union Electrica Fenosa, SA.............................. 228 2,980
Vallehermoso, SA........................................ 2,270 21,879
Viscofan Industria Navarra De Envolturas Celulosicas,
SA.................................................... 78 884
-----------
234,392
-----------
SWEDEN 1.3%
ABB, AB, Class A........................................ 300 3,993
ABB, AB, Class B........................................ 100 1,325
ABB, AG (a)............................................. 16 1,498
AGA, AB, Class B........................................ 100 1,237
Atlas Copco, AB, Class A................................ 100 2,727
Castellum, AB........................................... 930 8,764
Diligentia.............................................. 1,440 11,196
Drott AB, Class B....................................... 800 6,503
Electrolux, AB.......................................... 400 8,387
Ericsson Telefon LM, Class B............................ 2,100 67,411
Foreningssparbk......................................... 550 7,775
Hennes & Mauritz, AB, Class B........................... 1,000 24,738
Netcom Systems, AB...................................... 100 3,369
OM Gruppen, AB.......................................... 100 1,131
Sandvik, AB............................................. 200 4,370
Securitas, AB, Class B.................................. 200 2,992
</TABLE>
See Notes to Financial Statements
21
<PAGE> 23
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Shares Market Value
- -----------------------------------------------------------------------------------
<S> <C> <C>
SWEDEN (CONTINUED)
Skandia Forsakrings, AB................................. 500 $ 9,365
Skandinaviska Enskilda Banken, Class A.................. 600 6,997
Skanska, AB, Class B.................................... 100 3,776
SKF, AB, Class B........................................ 100 1,849
SSAB Svenska Stal, AB, Class A.......................... 100 1,255
Svenska Cellulosa, AB, Class B.......................... 200 5,183
Svenska Handelsbanken, Class A (a)...................... 700 8,411
Tornet Fastighet........................................ 485 6,599
Trelleborg, AB, Class B................................. 100 884
Volvo, AB, Class A...................................... 100 2,886
Volvo, AB, Class B...................................... 400 11,615
WM-Data, AB............................................. 100 3,817
-----------
220,053
-----------
SWITZERLAND 2.2%
ABB, AG................................................. 10 14,790
Credit Suisse Group..................................... 200 34,596
Holderbank Financiere Glarus, AG........................ 10 11,800
Nestle, SA.............................................. 30 54,035
Novartis................................................ 50 72,986
Roche Holdings Bearer, AG............................... 1 16,462
Roche Holdings Genusscheine, AG......................... 5 51,379
Schweizerische Rueckversicherungs-Gesellschaft.......... 10 19,034
SGS Holdings............................................ 5 5,176
Sulzer, AG.............................................. 10 6,077
Swatch Group, AG........................................ 10 6,726
Swisscom, AG (a)........................................ 50 18,809
UBS, AG (a)............................................. 157 46,845
Zurich Allied, AG (a)................................... 40 22,738
-----------
381,453
-----------
UNITED KINGDOM 8.1%
Abbey National.......................................... 860 16,152
Albert Fisher Group..................................... 809 166
Alldays, PLC............................................ 29 35
</TABLE>
See Notes to Financial Statements
22
<PAGE> 24
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Shares Market Value
- -----------------------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM (CONTINUED)
Allders................................................. 38 $ 82
Allied Zurich........................................... 1,279 16,078
AMEC.................................................... 113 460
Anglian Water........................................... 587 6,495
Arjo Wiggins Apple...................................... 1,051 3,653
Associated British Ports Holdings....................... 2,175 9,805
Barclays................................................ 777 22,597
Barratt Developments.................................... 277 1,554
Bass.................................................... 668 9,498
Beazer Group............................................ 936 2,936
Berisford............................................... 502 1,909
Berkeley Group.......................................... 204 2,447
BG, Class B............................................. 1,775 10,828
BICC Group.............................................. 115 163
Blue Circle Industries.................................. 2,521 16,809
BOC Group............................................... 687 13,449
Boots Co................................................ 657 7,798
BPA Group............................................... 19 146
BPB..................................................... 1,000 5,927
British Aerospace....................................... 1,261 8,209
British Airways......................................... 1,314 9,072
British American Tobacco................................ 1,227 11,575
British Land Co......................................... 5,690 47,535
British Petroleum....................................... 4,368 78,214
British Sky Broadcast................................... 1,255 11,642
British Telecommunications.............................. 3,659 61,251
Burmah Castrol, PLC..................................... 514 9,747
Cable & Wireless........................................ 851 10,852
Capital Shop Centers.................................... 1,880 11,913
Caradon................................................. 1,305 3,075
Carpetright............................................. 351 2,185
Centrica, PLC........................................... 3,397 7,978
Cobham, PLC............................................. 431 6,824
</TABLE>
See Notes to Financial Statements
23
<PAGE> 25
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Shares Market Value
- -----------------------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM (CONTINUED)
Commercial Union........................................ 727 $ 10,468
Delta................................................... 64 149
Diageo.................................................. 2,545 26,737
Dialog Corp............................................. 70 103
Emap.................................................... 122 2,135
EMI Group............................................... 1,988 16,028
Enterprise Oil.......................................... 752 4,799
FirstGroup.............................................. 726 3,965
FKI..................................................... 635 1,972
General Electric........................................ 2,344 23,813
Glaxo Wellcome.......................................... 1,891 52,550
Granada Group........................................... 452 8,372
Grantchester Holdings................................... 7,990 21,599
Great Portland Estates, PLC............................. 3,860 13,340
Great Universal Stores.................................. 794 8,855
Greycoat................................................ 6 24
Hammerson, PLC.......................................... 2,770 20,696
Hanson.................................................. 1,470 13,207
Hilton Group............................................ 1,079 4,311
House Of Fraser......................................... 218 299
HSBC Holdings........................................... 568 20,082
Hyder................................................... 1,080 12,751
IMI..................................................... 699 2,833
Imperial Chemical Industries............................ 735 7,258
Invensys, PLC........................................... 3,518 16,636
Jarvis.................................................. 437 2,135
JBA Holdings............................................ 3 5
Johnson Matthey......................................... 837 8,180
Kingfisher.............................................. 293 3,419
Laird Group............................................. 49 203
Land Securities......................................... 5,932 79,571
Lasmo................................................... 1,975 4,452
Lex Service............................................. 783 7,195
</TABLE>
See Notes to Financial Statements
24
<PAGE> 26
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Shares Market Value
- -----------------------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM (CONTINUED)
LIMIT................................................... 1,752 $ 3,687
Lloyds TSB Group........................................ 3,842 52,172
London Clubs International.............................. 616 1,398
London Forfaiting....................................... 113 102
Lonmin, PLC............................................. 516 4,799
Low & Bonar............................................. 10 32
Marks & Spencer......................................... 1,842 10,627
Mayflower Corp.......................................... 3 10
Meggitt................................................. 14 43
MEPC.................................................... 5,161 42,017
Mirror Group............................................ 657 2,563
Misys................................................... 1,050 8,987
National Power.......................................... 800 5,813
Next.................................................... 456 5,535
NFC..................................................... 1,159 3,763
Ocean Group............................................. 13 214
P & O Finance........................................... 790 11,848
Parity.................................................. 272 2,723
Pennon Group............................................ 446 7,480
Pilkington.............................................. 3,266 4,448
Powerscreen International............................... 31 93
Prudential Corp......................................... 1,987 29,284
Racal Electronics....................................... 315 1,919
Railtrack Group......................................... 344 7,033
Rank Group.............................................. 805 3,204
Reed International...................................... 979 6,512
Rentokil Initial........................................ 1,755 6,805
Reuters Group........................................... 1,223 16,087
Rexam................................................... 35 142
Rio Tinto............................................... 924 15,482
RMC Group............................................... 679 10,917
Rolls Royce............................................. 1,073 4,533
Royal & Sun Alliance.................................... 1,046 9,373
</TABLE>
See Notes to Financial Statements
25
<PAGE> 27
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Shares Market Value
- -----------------------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM (CONTINUED)
Royal Bank Scotland Group............................... 609 $ 12,479
Rugby Group............................................. 388 691
Safeway................................................. 857 3,418
Sainsbury J Finance..................................... 1,293 8,152
Schlumberger, Ltd. - US$................................ 300 19,106
Scotia Holdings......................................... 90 157
Scottish & Southern Energy, PLC......................... 651 6,649
Scottish Power.......................................... 871 7,455
Skillsgroup............................................. 45 210
Slough Estates, PLC..................................... 4,960 28,302
Smithkline Beecham...................................... 2,920 37,972
Smiths Industries....................................... 160 2,124
Stagecoach Holdings..................................... 1,292 4,618
Tesco................................................... 3,864 10,019
Thames Water............................................ 484 7,675
Torotrak................................................ 15 47
Unilever................................................ 2,006 17,802
Vickers Group........................................... 42 108
Vodafone Group.......................................... 2,358 46,386
Vodafone Group PLC - ADR - US$.......................... 150 29,550
Wickes.................................................. 17 103
William Baird........................................... 669 1,197
WPP Group............................................... 860 7,281
Yorkshire Water......................................... 545 3,814
Zeneca Group............................................ 1,052 40,676
-----------
1,402,837
-----------
UNITED STATES 32.5%
3Com Corp. (a).......................................... 100 2,669
Abbott Laboratories, Inc. (b)........................... 700 31,850
AES Corp. (a)........................................... 100 5,813
Aetna, Inc.............................................. 100 8,944
Air Products & Chemicals, Inc........................... 100 4,025
Albertsons, Inc......................................... 100 5,156
</TABLE>
See Notes to Financial Statements
26
<PAGE> 28
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Shares Market Value
- -----------------------------------------------------------------------------------
<S> <C> <C>
UNITED STATES (CONTINUED)
Alcoa, Inc.............................................. 300 $ 18,562
AlliedSignal, Inc....................................... 300 18,900
Allstate Corp........................................... 300 10,762
ALLTEL Corp............................................. 100 7,150
Amerada Hess Corp....................................... 100 5,950
America Online, Inc..................................... 600 66,300
American Electric Power, Inc............................ 100 3,756
American Express Co..................................... 300 39,037
American General Corp................................... 200 15,075
American Home Products Corp............................. 700 40,250
American International Group, Inc. (b).................. 671 78,549
Ameritech Corp.......................................... 600 44,100
Amgen, Inc. (a)......................................... 400 24,350
AMR Corp. (a)........................................... 100 6,825
Anheuser-Busch Cos., Inc................................ 300 21,281
Aon Corporation......................................... 150 6,188
Applied Materials, Inc. (a)............................. 200 14,775
Archer-Daniels-Midland Co............................... 200 3,088
Associates First Capital Corp., Class A................. 299 13,249
AT&T Corp. (b).......................................... 1,998 111,513
Atlantic Richfield Co................................... 200 16,712
Automatic Data Processing, Inc.......................... 300 13,200
Avery Dennison Corp..................................... 100 6,038
Avon Products, Inc...................................... 200 11,100
Baker Hughes, Inc....................................... 100 3,350
Bank of New York Co., Inc............................... 200 7,338
Bank One Corp........................................... 600 35,737
BankAmerica Corp. (b)................................... 800 58,650
BankBoston Corp......................................... 200 10,225
Baxter International, Inc............................... 200 12,125
BB&T Corp............................................... 200 7,338
Becton, Dickinson & Co.................................. 100 3,000
Bell Atlantic Corp...................................... 700 45,762
</TABLE>
See Notes to Financial Statements
27
<PAGE> 29
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Shares Market Value
- -----------------------------------------------------------------------------------
<S> <C> <C>
UNITED STATES (CONTINUED)
BellSouth Corp. (b)..................................... 900 $ 42,187
Bestfoods............................................... 200 9,900
Black & Decker Corp..................................... 100 6,313
BMC Software, Inc. (a).................................. 100 5,400
Boeing Co............................................... 400 17,675
Boston Scientific Corp. (a)............................. 100 4,394
Bristol-Myers Squibb Co. (b)............................ 1,000 70,437
Burlington Northern Santa Fe Corp....................... 100 3,100
Campbell Soup Co........................................ 200 9,275
Capital One Financial Corp.............................. 300 16,706
Cardinal Health, Inc.................................... 100 6,413
Carolina Power & Light Co............................... 100 4,281
Case Corp............................................... 300 14,437
Caterpillar, Inc........................................ 200 12,000
CBS Corp................................................ 300 13,031
Cendant Corp. (a)....................................... 500 10,250
Charles Schwab Corp..................................... 300 32,962
Chase Manhattan Corp.................................... 500 43,312
Chevron Corp............................................ 400 38,075
Chubb Corp.............................................. 100 6,950
CIGNA Corp.............................................. 100 8,900
Cincinnati Financial Corp............................... 100 3,756
Cisco Systems, Inc. (a) (b)............................. 1,800 116,100
Citigroup, Inc. (b)..................................... 1,650 78,375
Clear Channel Communications, Inc. (a).................. 100 6,894
Clorox Co............................................... 100 10,681
Coastal Corp............................................ 100 4,000
Coca-Cola Co. (b)....................................... 1,100 68,750
Coca-Cola Enterprises, Inc.............................. 100 2,975
Colgate - Palmolive Co.................................. 200 19,750
Columbia/HCA Healthcare Corp............................ 300 6,844
Comcast Corp., Class A.................................. 400 15,375
Comerica, Inc........................................... 100 5,944
</TABLE>
See Notes to Financial Statements
28
<PAGE> 30
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Shares Market Value
- -----------------------------------------------------------------------------------
<S> <C> <C>
UNITED STATES (CONTINUED)
Compaq Computer Corp.................................... 800 $ 18,950
Computer Associates International, Inc.................. 300 16,500
Computer Sciences Corp. (a)............................. 100 6,919
ConAgra, Inc............................................ 100 2,663
Consolidated Edison, Inc................................ 100 4,525
Cooper Industries, Inc.................................. 100 5,200
Corning, Inc............................................ 100 7,013
Costco Cos., Inc. (a)................................... 100 8,006
Countrywide Credit Industries, Inc...................... 100 4,275
CSX Corp................................................ 100 4,531
CVS Corp................................................ 200 10,150
Dana Corp............................................... 100 4,606
Dayton Hudson Corp...................................... 300 19,500
Dell Computer Corp. (a) (b)............................. 1,900 70,300
Delphi Automotive Systems Corp.......................... 280 5,190
Delta Air Lines, Inc.................................... 200 11,525
Dominion Resources, Inc................................. 100 4,331
Dow Chemical Co......................................... 200 25,375
DTE Energy Co........................................... 100 4,000
Du Pont (E. I.) de Nemours & Co. (b).................... 600 40,987
Duke Power Co........................................... 200 10,875
Dun & Bradstreet Corp................................... 100 3,544
Eastman Kodak Co........................................ 200 13,550
Edison International.................................... 100 2,675
Electronic Data Systems Corp............................ 300 16,969
Eli Lilly & Co. (b)..................................... 500 35,812
EMC Corp. (a)........................................... 600 33,000
Emerson Electric Co..................................... 200 12,575
Enron Corp.............................................. 200 16,350
Equifax, Inc............................................ 100 3,569
Exxon Corp. (b)......................................... 1,100 84,837
FDX Corp. (a)........................................... 200 10,850
Federal Home Loan Mortgage Corp......................... 300 17,400
</TABLE>
See Notes to Financial Statements
29
<PAGE> 31
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Shares Market Value
- -----------------------------------------------------------------------------------
<S> <C> <C>
UNITED STATES (CONTINUED)
Federal National Mortgage Assn. (b)..................... 600 $ 41,025
Federated Department Stores, Inc. (a)................... 100 5,294
Fifth Third Bancorp..................................... 200 13,312
First Data Corp......................................... 200 9,787
First Union Corp........................................ 500 23,500
Fleet Financial Group, Inc.............................. 300 13,312
Ford Motor Co. (b)...................................... 700 39,506
FPL Group, Inc. (b)..................................... 100 5,463
Frontier Corp........................................... 100 5,900
Gannett, Inc............................................ 200 14,275
Gap, Inc................................................ 450 22,669
Gateway, Inc. (a)....................................... 100 5,900
General Dynamics Corp................................... 100 6,850
General Electric Co. (b)................................ 1,600 180,800
General Mills, Inc...................................... 100 8,038
General Motors Corp..................................... 400 26,400
Georgia-Pacific Corp.................................... 200 9,475
Gillette Co............................................. 600 24,600
Golden West Financial Corp.............................. 100 9,800
Goodyear Tire & Rubber Co............................... 200 11,762
GPU, Inc................................................ 100 4,219
GTE Corp................................................ 500 37,875
Guidant Corp............................................ 200 10,287
H. J. Heinz & Co........................................ 200 10,025
Halliburton Co.......................................... 100 4,525
Hartford Financial Services Group, Inc.................. 100 5,831
HEALTHSOUTH Corp. (a)................................... 200 2,988
Hershey Foods Corp...................................... 100 5,938
Hewlett-Packard Co...................................... 600 60,300
Home Depot, Inc. (b).................................... 800 51,550
Honeywell, Inc.......................................... 100 11,587
Household International, Inc............................ 200 9,475
Illinois Tool Works, Inc................................ 200 16,400
</TABLE>
See Notes to Financial Statements
30
<PAGE> 32
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Shares Market Value
- -----------------------------------------------------------------------------------
<S> <C> <C>
UNITED STATES (CONTINUED)
IMS Health, Inc......................................... 100 $ 3,125
Ingersoll-Rand Co....................................... 100 6,463
Intel Corp. (b)......................................... 1,400 83,300
International Business Machines Corp. (b)............... 800 103,400
International Paper Co.................................. 200 10,100
Interpublic Group of Cos., Inc.......................... 100 8,662
ITT Industries, Inc..................................... 100 3,813
J.C. Penney, Inc........................................ 100 4,856
Jefferson-Pilot Corp.................................... 100 6,619
Johnson & Johnson, Inc. (b)............................. 600 58,800
JP Morgan & Co., Inc.................................... 100 14,050
Kellogg Co.............................................. 200 6,600
Keycorp................................................. 100 3,213
Kimberly Clark Corp..................................... 300 17,100
Kmart Corp. (a)......................................... 200 3,288
Kohl's Corp. (a)........................................ 100 7,719
Kroger Co. (a).......................................... 600 16,762
Latin American Discovery Fund, Inc. (b) (c)............. 12,800 120,000
Lehman Brothers Holdings, Inc........................... 100 6,225
LifePoint Hospitals, Inc. (a)........................... 15 202
Limited, Inc............................................ 100 4,538
Lincoln National Corp................................... 200 10,462
Lockheed Martin Corp.................................... 200 7,450
Loews Corp.............................................. 100 7,913
Lowe's Cos., Inc........................................ 200 11,337
Lucent Technologies, Inc. (b)........................... 1,365 92,052
Marriott International, Inc., Class A................... 100 3,738
Marsh & McLennan Cos., Inc.............................. 100 7,550
Masco Corp.............................................. 100 2,888
May Department Stores Co................................ 300 12,262
Maytag Corp............................................. 100 6,969
MBIA, Inc............................................... 100 6,475
MBNA Corp............................................... 300 9,187
</TABLE>
See Notes to Financial Statements
31
<PAGE> 33
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Shares Market Value
- -----------------------------------------------------------------------------------
<S> <C> <C>
UNITED STATES (CONTINUED)
McDonald's Corp......................................... 800 $ 33,050
McGraw-Hill, Inc........................................ 200 10,787
MCI WorldCom, Inc. (a) (b).............................. 1,100 94,669
McKesson HBOC, Inc...................................... 74 2,377
MediaOne Group, Inc..................................... 300 22,312
Medtronic, Inc.......................................... 300 23,362
Mellon Bank Corp........................................ 400 14,550
Mercantile Bancorporation, Inc.......................... 100 5,713
Merck & Co., Inc. (b)................................... 1,000 74,000
Merrill Lynch & Co., Inc................................ 200 15,987
MGIC Investment Corp.................................... 100 4,863
Micron Technology, Inc. (a)............................. 100 4,031
Microsoft Corp. (a) (b)................................. 2,500 225,469
Minnesota Mining & Manufacturing Co..................... 300 26,081
Mobil Corp.............................................. 400 39,600
Monsanto Co............................................. 300 11,831
Morgan Stanley Asia Pacific Fund, Inc. (c).............. 6,200 59,675
Motorola, Inc........................................... 400 37,900
National City Corp...................................... 200 13,100
Newell Rubbermaid, Inc.................................. 100 4,650
Nextel Communications, Inc. (a)......................... 100 5,019
Nike, Inc., Class B..................................... 200 12,662
Norfolk Southern Corp................................... 100 3,013
Northern Trust Corp..................................... 100 9,700
Novell, Inc. (a)........................................ 100 2,650
Occidental Petroleum Corp............................... 100 2,113
Omnicom Group, Inc...................................... 100 8,000
Oracle Corp. (a)........................................ 750 27,844
PacifiCorp.............................................. 100 1,838
Paychex, Inc............................................ 150 4,781
PECO Energy Co.......................................... 100 4,188
PepsiCo, Inc............................................ 700 27,081
Pfizer, Inc. (b)........................................ 600 65,850
</TABLE>
See Notes to Financial Statements
32
<PAGE> 34
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Shares Market Value
- -----------------------------------------------------------------------------------
<S> <C> <C>
UNITED STATES (CONTINUED)
PG&E Corporation........................................ 200 $ 6,500
Pharmacia & Upjohn, Inc................................. 300 17,044
Philip Morris Cos., Inc. (b)............................ 1,100 44,206
Phillips Petroleum Co................................... 200 10,062
Pitney Bowes, Inc....................................... 200 12,850
PNC Bank Corp........................................... 200 11,525
PPG Industries, Inc..................................... 200 11,812
Praxair, Inc............................................ 100 4,894
Procter & Gamble Co. (b)................................ 600 53,550
Progressive Corp........................................ 100 14,500
Providian Financial Corp................................ 150 14,025
Public Service Enterprise Group......................... 100 4,088
Quaker Oats Co.......................................... 100 6,638
Ralston Purina Group.................................... 100 3,044
Raytheon Co., Class B................................... 200 14,075
Regions Financial Corp.................................. 100 3,844
Republic New York Corp.................................. 100 6,819
Rite Aid Corp........................................... 100 2,463
Rockwell International Corp............................. 100 6,075
Rohm & Haas Co.......................................... 100 4,288
Royal Dutch Petroleum Co. - ADR (Netherlands) (b)....... 1,000 60,250
SAFECO Corp............................................. 100 4,413
Sara Lee Corp........................................... 500 11,344
SBC Communications, Inc. (b)............................ 900 52,200
Schering-Plough Corp.................................... 700 37,100
Sears, Roebuck & Co..................................... 200 8,912
SLM Holding Corp........................................ 100 4,581
Southern Co............................................. 300 7,950
Sprint Corp. (PCS Group)................................ 800 42,250
Sprint Corp. (PCS Group) Ser I (a)...................... 100 5,713
St. Paul Cos., Inc...................................... 100 3,181
Staples, Inc............................................ 200 6,188
State Street Corp....................................... 100 8,538
</TABLE>
See Notes to Financial Statements
33
<PAGE> 35
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Shares Market Value
- -----------------------------------------------------------------------------------
<S> <C> <C>
UNITED STATES (CONTINUED)
Summit Bancorp.......................................... 100 $ 4,181
Sun Microsystems, Inc. (a).............................. 400 27,550
SunTrust Banks, Inc..................................... 100 6,944
SYSCO Corp.............................................. 100 2,981
Tellabs, Inc. (a)....................................... 400 27,025
Tenet Healthcare Corp. (a).............................. 100 1,856
Texaco, Inc............................................. 300 18,750
Texas Instruments, Inc.................................. 200 29,000
Texas Utilities Co...................................... 100 4,125
Textron, Inc............................................ 100 8,231
Time Warner, Inc........................................ 600 44,100
Times Mirror Co., Class A............................... 100 5,925
TJX Cos., Inc........................................... 100 3,331
Transamerica Corp....................................... 200 15,000
Triad Hospitals, Inc. (a)............................... 15 203
Tribune Co.............................................. 100 8,712
Tricon Global Restaurants, Inc. (a)..................... 100 5,413
TRW, Inc................................................ 100 5,488
Tyco International Ltd.................................. 550 52,112
Unicom Corp............................................. 100 3,856
Unilever NV - ADR (Netherlands)......................... 305 21,274
Union Carbide Corp...................................... 100 4,875
Union Pacific Corp...................................... 100 5,831
Union Planters Corp. - Rights........................... 100 4,469
United HealthCare Corp.................................. 100 6,263
United Technologies Corp................................ 600 43,012
Unocal Corp............................................. 100 3,963
UNUM Corp............................................... 100 5,475
US Airways Group, Inc. (a).............................. 100 4,356
US Bancorp.............................................. 300 10,200
US West, Inc............................................ 299 17,566
USX - Marathon Group.................................... 100 3,256
Viacom, Inc., Class B (a)............................... 400 17,600
</TABLE>
See Notes to Financial Statements
34
<PAGE> 36
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Shares Market Value
- -----------------------------------------------------------------------------------
<S> <C> <C>
UNITED STATES (CONTINUED)
Wachovia Corp........................................... 100 $ 8,556
Wal-Mart Stores, Inc. (b)............................... 2,000 96,500
Walgreen Co............................................. 500 14,687
Walt Disney Co.......................................... 1,000 30,812
Warner-Lambert Co....................................... 500 34,687
Washington Mutual, Inc.................................. 400 14,150
Waste Management, Inc................................... 300 16,125
Wells Fargo & Co........................................ 700 29,925
Weyerhaeuser Co......................................... 200 13,750
Williams Cos., Inc...................................... 200 8,513
Winn-Dixie Stores, Inc.................................. 100 3,694
Wm Wrigley Jr. Co....................................... 100 9,000
Xerox Corp.............................................. 400 23,625
-----------
5,597,087
-----------
TOTAL COMMON AND PREFERRED STOCKS AND EQUIVALENTS 69.9%......... 12,024,543
-----------
GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS 8.8%
Jeronimo Martins - PTE (174,000 par, 0.000% coupon, 12/30/04
maturity)........................................................ 106
U.S. Treasury Bonds - US$ (250,000 par, 12.000% coupon, 05/15/02
maturity)........................................................ 324,140
U.S. Treasury Bonds - US$ (500,000 par, 6.250% coupon, 08/15/23
maturity) (b).................................................... 502,345
U.S. Treasury Notes - US$ (350,000 par, 6.250% coupon, 10/31/01
maturity) (b).................................................... 354,977
U.S. Treasury Notes - US$ (320,000 par, 7.250% coupon, 05/15/04
maturity) (b).................................................... 339,798
-----------
TOTAL GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS ............. 1,521,366
-----------
TOTAL LONG-TERM INVESTMENTS 78.7%
(Cost $11,403,648)............................................... 13,545,909
-----------
SHORT-TERM INVESTMENTS 22.2%
COMMERCIAL PAPER 12.7%
Abbey National Number America (200,000 par, 4.860% coupon,
07/15/99)........................................................ 199,614
Abbott Labs (200,000 par, 4.820% coupon, 07/06/99)................. 199,867
Banque Generale Du Luxembourg (200,000 par, 4.870% coupon,
07/09/99) (b).................................................... 199,786
Bil North America, Inc. (200,000 par, 4.930% coupon, 08/13/99)
(b).............................................................. 198,795
Coca Cola Co. (200,000 par, 4.880% coupon, 07/19/99)............... 199,515
Deutsche Bank Finance (200,000 par, 4.850% coupon, 07/13/99) (b)... 199,670
General Electric Capital Corp. (200,000 par, 5.031% coupon,
07/23/99)........................................................ 199,388
</TABLE>
See Notes to Financial Statements
35
<PAGE> 37
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Market Value
- -----------------------------------------------------------------------------------
<S> <C>
COMMERCIAL PAPER (CONTINUED)
Hydro Quebec (200,000 par, 4.930% coupon, 08/31/99) (b)............ $ 198,216
Oesterreichische (200,000 par, 5.032% coupon, 08/02/99)............ 199,111
Procter & Gamble Co. (200,000 par, 5.005% coupon, 08/09/99)........ 198,923
Westpac Capital Corp. (200,000 par, 4.860% coupon, 07/13/99) (b)... 199,669
-----------
TOTAL COMMERCIAL PAPER........................................... 2,192,554
-----------
REPURCHASE AGREEMENT 5.5%
State Street Bank & Trust Co. ($939,000 par collateralized by U.S.
Government obligations in a pooled cash account, dated 06/30/99,
to be sold on 07/01/99 at $939,104).............................. 939,000
-----------
U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS 4.0%
Federal Farm Credit Bank Discount Notes - US$ (200,000 par, 4.689%
yield, 07/26/99 maturity)........................................ 199,332
Federal Home Loan Mortgage Discount Notes - US$ (200,000 par,
4.796% yield, 08/19/99 maturity) (b)............................. 198,686
Federal National Mortgage Association Discount Notes - US$ (300,000
par, 4.206% yield, 07/07/99 maturity)............................ 299,758
-----------
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS............ 697,776
-----------
TOTAL SHORT-TERM INVESTMENTS 22.2%
(Cost $3,829,517)................................................ 3,829,330
-----------
TOTAL INVESTMENTS 100.9%
(Cost $15,233,165)............................................... 17,375,239
FOREIGN CURRENCY 0.1% (VARIOUS DENOMINATIONS)
(Cost $13,361)................................................... 13,298
LIABILITIES IN EXCESS OF OTHER ASSETS (1.0%)...................... (171,493)
-----------
NET ASSETS 100.0%.................................................. $17,217,044
===========
</TABLE>
(a) Non-income producing security as this stock currently does not declare
dividends.
(b) Assets segregated as collateral for open futures transactions and forward
commitments.
(c) Related party security. See Notes to Financial Statements.
ADR - American Depository Receipt
AUD - Australian Dollar
CAD - Canadian Dollar
DEM - German Mark
DKK - Danish Krone
FRF - French Franc
GBP - British Pound
JPY - Japanese Yen
PTE - Portuguese Escudo
SEK - Swedish Krona
See Notes to Financial Statements
36
<PAGE> 38
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Total Investments (Cost $15,233,165)........................ $17,375,239
Foreign Currency (Cost $13,361)............................. 13,298
Cash........................................................ 804
Deposit on Variation Margin................................. 32,895
Receivables:
Variation Margin on Futures............................... 168,804
Dividends................................................. 23,740
Interest.................................................. 20,698
Investments Sold.......................................... 5,385
Fund Shares Sold.......................................... 3,664
Other....................................................... 3,510
-----------
Total Assets.......................................... 17,648,037
-----------
LIABILITIES:
Payables:
Fund Shares Repurchased................................... 41,440
Distributor and Affiliates................................ 27,808
Investment Advisory Fee................................... 14,119
Investments Purchased..................................... 1,438
Forward Commitments and Foreign Currency Contracts.......... 195,654
Trustees' Deferred Compensation and Retirement Plans........ 34,363
Accrued Expenses............................................ 116,171
-----------
Total Liabilities..................................... 430,993
-----------
NET ASSETS.................................................. $17,217,044
===========
NET ASSETS CONSIST OF:
Capital (Par value of $.01 per share with an unlimited
number of shares authorized).............................. $15,103,527
Net Unrealized Appreciation................................. 1,978,480
Accumulated Net Realized Gain............................... 331,914
Accumulated Net Investment Loss............................. (196,877)
-----------
NET ASSETS.................................................. $17,217,044
===========
MAXIMUM OFFERING PRICE PER SHARE:
Class A Shares:
Net asset value and redemption price per share (Based on
net assets of $6,888,704 and 680,271 shares of
beneficial interest issued and outstanding)............. $ 10.13
Maximum sales charge (4.75%* of offering price)......... .51
-----------
Maximum offering price to public........................ $ 10.64
===========
Class B Shares:
Net asset value and offering price per share (Based on
net assets of $8,777,080 and 893,366 shares of
beneficial interest issued and outstanding)............. $ 9.82
===========
Class C Shares:
Net asset value and offering price per share (Based on
net assets of $1,551,260 and 157,304 shares of
beneficial interest issued and outstanding)............. $ 9.86
===========
</TABLE>
*On sales of $100,000 or more, the sales charge will be reduced.
See Notes to Financial Statements
37
<PAGE> 39
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest.................................................... $ 144,594
Dividends (Net of foreign withholding taxes of $11,831)..... 132,222
------------
Total Income............................................ 276,816
------------
EXPENSES:
Custody..................................................... 139,966
Investment Advisory Fee..................................... 88,574
Distribution (12b-1) and Service Fees (Attributed to Classes
A, B and C of $8,829, $45,823 and $7,433, respectively)... 62,085
Shareholder Services........................................ 45,500
Reports to Shareholders..................................... 34,750
Trustees' Fees and Related Expenses......................... 6,179
Amortization of Organizational Costs........................ 1,040
Other....................................................... 47,160
------------
Total Expenses.......................................... 425,254
------------
NET INVESTMENT LOSS......................................... $ (148,438)
============
REALIZED AND UNREALIZED GAIN/LOSS:
Realized Gain/Loss:
Investments............................................... $ 619,949
Futures................................................... 16,647
Forward Commitments....................................... 73,155
Foreign Currency Transactions............................. (219,036)
------------
Net Realized Gain........................................... 490,715
------------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 2,216,687
------------
End of the Period:
Investments............................................. 2,142,074
Futures................................................. 28,056
Forward Commitments..................................... 3,222
Forward Currency Contracts.............................. (109,931)
Foreign Currency Translation............................ (84,941)
------------
1,978,480
------------
Net Unrealized Depreciation During the Period............... (238,207)
------------
NET REALIZED AND UNREALIZED GAIN............................ $ 252,508
============
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $ 104,070
============
</TABLE>
See Notes to Financial Statements
38
<PAGE> 40
STATEMENT OF CHANGES IN NET ASSETS
For the Six Months Ended June 30, 1999 and
Year Ended December 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 1999 December 31, 1998
- --------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Loss.............................. $ (148,438) $ (230,552)
Net Realized Gain................................ 490,715 3,218,575
Net Unrealized Appreciation/Depreciation During
the Period..................................... (238,207) 108,563
----------- -----------
Change in Net Assets from Operations............. 104,070 3,096,586
----------- -----------
Distributions in Excess of Net Investment
Income*........................................ (25,278) (76,480)
Distributions from Net Realized Gain*............ (483,718) (2,388,475)
----------- -----------
Total Distributions.............................. (508,996) (2,464,955)
----------- -----------
NET CHANGE IN NET ASSETS FROM INVESTMENT
ACTIVITIES..................................... (404,926) 631,631
----------- -----------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold........................ 1,855,517 6,233,096
Net Asset Value of Shares Issued Through Dividend
Reinvestment................................... 459,992 2,280,988
Cost of Shares Repurchased....................... (4,253,978) (12,579,170)
----------- -----------
NET CHANGE IN NET ASSETS FROM CAPITAL
TRANSACTIONS................................... (1,938,469) (4,065,086)
----------- -----------
TOTAL DECREASE IN NET ASSETS..................... (2,343,395) (3,433,455)
NET ASSETS:
Beginning of the Period.......................... 19,560,439 22,993,894
----------- -----------
End of the Period (Including accumulated net
investment loss of $196,877 and $23,161,
respectively).................................. $17,217,044 $19,560,439
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
*Distributions by Class
- --------------------------------------------------------------------------------------
<S> <C> <C>
Distributions in Excess of Net Investment Income:
Class A Shares................................. $ (25,278) $ (76,480)
Class B Shares................................. -0- -0-
Class C Shares................................. -0- -0-
----------- -----------
$ (25,278) $ (76,480)
=========== ===========
Distributions from Net Realized Gain:
Class A Shares................................. $ (184,723) $(1,080,329)
Class B Shares................................. (257,045) (1,144,103)
Class C Shares................................. (41,950) (164,043)
----------- -----------
$ (483,718) $(2,388,475)
=========== ===========
</TABLE>
See Notes to Financial Statements
39
<PAGE> 41
FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for one share of
the Fund outstanding throughout the periods indicated. (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Year Ended December 31,
Ended -------------------------------------
Class A Shares June 30, 1999(b) 1998(b) 1997 1996(b) 1995
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
the Period.................. $10.339 $10.162 $10.530 $ 10.15 $ 9.19
------- ------- ------- ------- -------
Net Investment Income/Loss.... (.063) (.066) (.088) -0- .08
Net Realized and Unrealized
Gain........................ .166 1.643 1.014 1.242 1.1375
------- ------- ------- ------- -------
Total from Investment
Operations.................. .103 1.577 .926 1.242 1.2175
------- ------- ------- ------- -------
Less:
Distributions from and in
Excess of Net Investment
Income.................... .038 .072 -0- -0- .0775
Distributions from and in
Excess of Net Realized
Gain...................... .278 1.328 1.294 .862 .18
------- ------- ------- ------- -------
Total Distributions........... .316 1.400 1.294 .862 .2575
------- ------- ------- ------- -------
Net Asset Value, End of the
Period...................... $10.126 $10.339 $10.162 $10.530 $ 10.15
======= ======= ======= ======= =======
Total Return* (a)............. 1.14%** 15.84% 8.94% 12.44% 13.30%
Net Assets at End of the
Period (In millions)........ $ 6.9 $ 8.5 $ 11.2 $ 8.5 $ 15.5
Ratio of Expenses to Average
Net Assets*................. 4.17% 4.11% 3.66% 2.87% 2.79%
Ratio of Net Investment
Income/Loss to Average Net
Assets*..................... (1.18%) (.60%) (.67%) .00% .81%
Portfolio Turnover............ 75%** 222% 231% 91% 135%
* If certain expenses had not been
assumed by Van Kampen, total return
would have been lower and the ratios
would have been as follows:
Ratio of Expenses to Average
Net Assets.................. N/A N/A N/A 3.17% 3.68%
Ratio of Net Investment
Income/Loss to Average Net
Assets...................... N/A N/A N/A (.30%) (.07%)
</TABLE>
** Non-Annualized
(a) Total Return is based upon net asset value which does not include payment of
the maximum sales charge or contingent deferred sales charge.
(b) Based on average shares outstanding.
N/A--Not Applicable.
See Notes to Financial Statements
40
<PAGE> 42
FINANCIAL HIGHLIGHTS (CONTINUED)
The following schedule presents financial highlights for one share of
the Fund outstanding throughout the periods indicated. (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Year Ended December 31,
Ended -------------------------------------
Class B Shares June 30, 1999(b) 1998(b) 1997 1996(b) 1995
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
the Period.................. $10.038 $ 9.911 $10.379 $ 10.10 $ 9.17
------- ------- ------- ------- -------
Net Investment Loss........... (.097) (.151) (.146) (.106) (.01)
Net Realized and Unrealized
Gain........................ .161 1.606 .972 1.247 1.1375
------- ------- ------- ------- -------
Total from Investment
Operations.................. .064 1.455 .826 1.141 1.1275
------- ------- ------- ------- -------
Less:
Distributions from and in
Excess of Net Investment
Income...................... -0- -0- -0- -0- .0175
Distributions from and in
Excess of Net Realized
Gain...................... .278 1.328 1.294 .862 .18
------- ------- ------- ------- -------
Total Distributions........... .278 1.328 1.294 .862 .1975
------- ------- ------- ------- -------
Net Asset Value, End of the
Period...................... $ 9.824 $10.038 $ 9.911 $10.379 $ 10.10
======= ======= ======= ======= =======
Total Return* (a)............. .68%** 14.96% 8.10% 11.51% 12.31%
Net Assets at End of the
Period (In millions)........ $ 8.8 $ 9.6 $ 10.0 $ 9.9 $ 8.1
Ratio of Expenses to Average
Net Assets*................. 5.08% 4.89% 4.42% 3.76% 3.73%
Ratio of Net Investment Loss
to Average Net Assets*...... (1.96%) (1.42%) (1.45%) (1.01%) (.09%)
Portfolio Turnover............ 75%** 222% 231% 91% 135%
*If certain expenses had not been
assumed by Van Kampen, total return
would have been lower and the ratios
would have been as follows:
Ratio of Expenses to Average
Net Assets.................. N/A N/A N/A 4.06% 4.61%
Ratio of Net Investment Loss
to Average Net Assets....... N/A N/A N/A (1.30%) (.97%)
</TABLE>
** Non-Annualized
(a) Total Return is based upon net asset value which does not include payment of
the maximum sales charge or contingent deferred sales charge.
(b) Based on average shares outstanding.
N/A--Not Applicable.
See Notes to Financial Statements
41
<PAGE> 43
FINANCIAL HIGHLIGHTS (CONTINUED)
The following schedule presents financial highlights for one share of
the Fund outstanding throughout the periods indicated. (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Year Ended December 31,
Ended -------------------------------------
Class C Shares June 30, 1999(b) 1998(b) 1997 1996(b) 1995
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
the Period.................. $10.057 $ 9.927 $10.395 $ 10.12 $ 9.20
------- ------- ------- ------- -------
Net Investment Loss........... (.096) (.147) (.139) (.104) (.02)
Net Realized and Unrealized
Gain........................ .179 1.605 .965 1.241 1.1375
------- ------- ------- ------- -------
Total from Investment
Operations.................. .083 1.458 .826 1.137 1.1175
------- ------- ------- ------- -------
Less:
Distributions from and in
Excess of Net Investment
Income.................... -0- -0- -0- -0- .0175
Distributions from and in
Excess of Net Realized
Gain...................... .278 1.328 1.294 .862 .18
------- ------- ------- ------- -------
Total Distributions........... .278 1.328 1.294 .862 .1975
------- ------- ------- ------- -------
Net Asset Value, End of the
Period...................... $ 9.862 $10.057 $ 9.927 $10.395 $ 10.12
======= ======= ======= ======= =======
Total Return* (a)............. .88%** 14.93% 8.09% 11.49% 12.16%
Net Assets at End of the
Period (In millions)........ $ 1.6 $ 1.4 $ 1.7 $ 1.7 $ 1.9
Ratio of Expenses to Average
Net Assets*................. 5.17% 4.91% 4.46% 3.78% 3.79%
Ratio of Net Investment Loss
to Average Net Assets*...... (1.98%) (1.38%) (1.50%) (.99%) (.18%)
Portfolio Turnover............ 75%** 222% 231% 91% 135%
* If certain expenses had not been
assumed by Van Kampen, total return
would have been lower and the ratios
would have been as follows:
Ratio of Expenses to Average
Net Assets.................. N/A N/A N/A 4.07% 4.67%
Ratio of Net Investment Loss
to Average Net Assets....... N/A N/A N/A (1.28%) (1.06%)
</TABLE>
** Non-Annualized
(a) Total Return is based upon net asset value which does not include payment of
the maximum sales charge or contingent deferred sales charge.
(b) Based on average shares outstanding.
N/A--Not Applicable.
See Notes to Financial Statements
42
<PAGE> 44
NOTES TO FINANCIAL STATEMENTS
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen Global Managed Assets Fund (the "Fund") is organized as 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 equity and debt securities. The Fund commenced investment
operations on May 16, 1994, with three classes of beneficial interest, Class A,
Class B and Class C shares.
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 in securities listed on a securities exchange
are valued at their sale price as of the close of such securities exchange.
Unlisted securities and listed securities for which the last sale price is not
available, are valued at the mean of the last reported bid and asked price.
Fixed income securities are stated at value using market quotations or
indications of value obtained from an independent pricing service. For those
securities where quotations or prices are not available, valuations are
determined in accordance with procedures established in good faith by the Board
of Trustees. Short-term securities with remaining maturities of 60 days or less
are valued at amortized cost.
B. SECURITY TRANSACTIONS--Security transactions are recorded on a trade date
basis. Realized gains and losses are determined on an identified cost basis.
The 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 Asset Management Inc. (the "Adviser") or its
affiliates, the daily aggregate of which is invested in repurchase agreements.
Repurchase agreements are fully collateralized by the underlying debt security.
The 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
43
<PAGE> 45
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
the value of the underlying security at not less than the repurchase proceeds
due the Fund.
C. INCOME AND EXPENSES--Dividend income is recorded on the ex-dividend date and
interest income is recorded on an accrual basis. 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. Income and expenses of the Fund are allocated on a pro rata basis to
each class of shares, except for distribution and service fees and transfer
agency costs which are unique to each class of shares.
D. FOREIGN CURRENCY TRANSLATION--Assets and liabilities denominated in foreign
currencies and commitments under forward 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. Realized and unrealized gains and losses on
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. ORGANIZATIONAL COSTS--The Fund reimbursed Van Kampen Funds Inc. or its
affiliates (collectively "Van Kampen") for costs incurred in connection with the
Fund's organization in the amount of $15,000. These costs were amortized on a
straight line basis over the 60-month period ending May 15, 1999.
F. 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 June 30, 1999, for federal income tax purposes cost of long- and
short-term investments, including foreign currencies, is $15,378,063, the
aggregate gross unrealized appreciation is $2,659,699 and the aggregate gross
unrealized depreciation is $649,225,
44
<PAGE> 46
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
resulting in net unrealized appreciation on long- and short-term investments,
including foreign currencies of $2,010,474.
Net realized gains or losses may differ for financial and tax reporting
purposes primarily as a result of the deferral of losses relating to wash sale
transactions.
G. DISTRIBUTION OF INCOME AND GAINS--The Fund declares and pays dividends
annually from net investment income and from net realized gains on securities,
if any. Net investment income for federal income tax purposes includes gains and
losses realized on certain transactions in foreign currencies. These realized
gains and losses are included as net realized gains or losses for financial
reporting purposes.
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. The Adviser has entered into a subadvisory agreement with Morgan
Stanley Dean Witter Investment Management Inc. (the "Subadviser"), who provides
advisory services to the Fund and the Adviser with respect to the Fund's
investment in foreign securities. Investment advisory fees are calculated
monthly, based on the average daily net assets of the Fund at the annual rate of
1.00%. The Adviser pays 50% of its investment advisory fee to the Subadviser.
For the six months ended June 30, 1999, the Fund recognized expenses of
approximately $500 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 June 30, 1999, the Fund recognized expenses of
approximately $6,700 representing Van Kampen's cost of providing accounting
services to the Fund.
Van Kampen Investor Services Inc., an affiliate of the Adviser, serves as
the shareholder servicing agent for the Fund. For the six months ended June 30,
1999, the Fund recognized expenses of approximately $36,000. Transfer agency
fees are determined through negotiations with the Fund's Board of Trustees and
are based on competitive market benchmarks.
Certain officers and trustees of the Fund are also officers and directors of
Van Kampen. The Fund does not compensate its officers or trustees who are
officers of Van Kampen.
45
<PAGE> 47
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
The Fund provides deferred compensation and retirement plans for its
trustees who are not officers of Van Kampen. Under the deferred compensation
plan, trustees may elect to defer all or a portion of their compensation to a
later date. Benefits under the retirement plan are payable for a ten-year period
and are based upon each trustee's years of service to the Fund. The maximum
annual benefit per trustee under the plan is $2,500.
During the period, the Fund owned shares of the following Morgan Stanley
Funds which are managed by the Subadviser:
<TABLE>
<CAPTION>
TRANSACTIONS
DURING THE PERIOD
---------------------
% OF NET ASSETS COST OF PROCEEDS
AT JUNE 30, 1999 PURCHASES OF SALES
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Latin American Discovery Fund,
Inc............................. .70% -0- -0-
Morgan Stanley Asia Pacific Fund,
Inc............................. .35% -0- -0-
</TABLE>
At June 30, 1999, Van Kampen owned 10,604, 53 and 53 shares of Classes A, B
and C of the Fund, respectively.
46
<PAGE> 48
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
3. CAPITAL TRANSACTIONS
At June 30, 1999, capital aggregated $5,378,448, $8,315,238 and $1,409,841
for Classes A, B and C, respectively. For the six months ended June 30, 1999,
transactions were as follows:
<TABLE>
<CAPTION>
SHARES VALUE
- --------------------------------------------------------------------------
<S> <C> <C>
Sales:
Class A......................................... 96,243 $ 974,398
Class B......................................... 60,448 597,378
Class C......................................... 28,492 283,741
-------- -----------
Total Sales....................................... 185,183 $ 1,855,517
======== ===========
Dividend Reinvestment:
Class A......................................... 19,775 $ 199,141
Class B......................................... 23,529 230,350
Class C......................................... 3,103 30,501
-------- -----------
Total Dividend Reinvestment....................... 46,407 $ 459,992
======== ===========
Repurchases:
Class A......................................... (256,220) $(2,604,947)
Class B......................................... (149,875) (1,471,580)
Class C......................................... (18,252) (177,451)
-------- -----------
Total Repurchases................................. (424,347) $(4,253,978)
======== ===========
</TABLE>
47
<PAGE> 49
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
At December 31, 1998, capital aggregated $6,809,856, $8,959,090 and
$1,273,050 for Classes A, B and C, respectively. For the year ended December 31,
1998, transactions were as follows:
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------------------------------
<S> <C> <C>
Sales:
Class A.................................... 425,556 $ 4,563,674
Class B.................................... 85,315 901,857
Class C.................................... 73,498 767,565
---------- ------------
Total Sales.................................. 584,369 $ 6,233,096
========== ============
Dividend Reinvestment:
Class A.................................... 108,757 $ 1,109,902
Class B.................................... 105,262 1,037,178
Class C.................................... 13,537 133,908
---------- ------------
Total Dividend Reinvestment.................. 227,556 $ 2,280,988
========== ============
Repurchases:
Class A.................................... (819,174) $ (8,755,915)
Class B.................................... (244,540) (2,594,678)
Class C.................................... (116,317) (1,228,577)
---------- ------------
Total Repurchases............................ (1,180,031) $(12,579,170)
========== ============
</TABLE>
Class B and C shares are offered without a front end sales charge, but are
subject to a contingent deferred sales charge (CDSC). Class B shares will
automatically convert to Class A shares after the eighth year following
purchase. 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.
<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>
48
<PAGE> 50
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
For the six months ended June 30, 1999, Van Kampen, as Distributor for the
Fund, received net commissions on sales of the Fund's Class A shares of
approximately $1,900 and CDSC on the redeemed shares of approximately $6,600.
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 $10,449,250 and
$12,660,064, 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 exercising a call option
contract or taking delivery of a security underlying a futures or forward
contract. In these instances, the recognition of gain or loss is postponed until
the disposal of the security underlying the contract. Forward commitments are
privately negotiated transactions between the Fund and dealers. Purchasing
securities on a forward basis involves a risk that the market value at the time
of delivery may be lower than the agreed upon purchase price resulting in an
unrealized loss. Selling securities on a forward basis involves different risks
and can result in losses more significant than those arising from the purchase
of such securities. Risks may arise as a result of the potential inability of
the counterparties to meet the terms of their commitments. While forward
commitments are outstanding, the Fund maintains sufficient collateral of cash or
securities in a segregated account with its custodian.
Summarized on the following pages are the specific types of derivative
financial instruments used by the Fund.
A. FORWARD PURCHASE COMMITMENTS--The Fund trades certain securities under the
terms of forward commitments, whereby the settlement occurs at a specific future
date.
49
<PAGE> 51
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
The commitments are marked to market on a daily basis with changes in value
reflected as a component of unrealized appreciation or depreciation on forward
commitments.
The following forward purchase commitments were outstanding as of June 30,
1999:
<TABLE>
<CAPTION>
PAR AMOUNT
IN LOCAL UNREALIZED
CURRENCY APPRECIATION/
(000) DESCRIPTION COUPON MATURITY DEPRECIATION
- ---------------------------------------------------------------------------------
<S> <C> <C> <C>
AUSTRALIA (COMMONWEALTH)
100-AUD Settlement 05/28/99........... 7.500% 09/15/09 $ 471
CANADA (GOVERNMENT OF)
70-CAD Settlement 07/22/99........... 8.750 12/01/05 (1,384)
200-CAD Settlement 08/25/99........... 5.250 09/01/03 2,304
DENMARK (KINGDOM OF)
1,000-DKK Settlement 08/16/99........... 8.000 05/15/03 5,685
1,000-DKK Settlement 09/09/99........... 7.000 12/15/04 293
GERMANY (FEDERAL REPUBLIC OF)
100-DEM Settlement 07/21/99........... 5.625 01/04/28 (3,730)
200-DEM Settlement 07/29/99........... 5.625 01/04/28 (10,345)
GERMANY UNITY (REPUBLIC OF)
400-DEM Settlement 07/21/99........... 8.500 02/20/01 12,779
FRANCE (GOVERNMENT OF)
450-FFR Settlement 07/09/99........... 4.500 07/12/03 10,823
150-FFR Settlement 07/22/99........... 5.250 04/25/08 (4,556)
JAPAN
30,000-JPY Settlement 07/21/99........... 0.900 12/22/08 (5,659)
30,000-JPY Settlement 08/16/99........... 3.400 03/22/04 (2,914)
SWEDEN (KINGDOM OF)
700-SEK Settlement 08/16/99........... 6.000 02/09/05 270
1,000-SEK Settlement 09/09/99........... 13.000 06/15/01 2,799
UNITED KINGDOM
210-ECU Settlement 07/29/99........... 7.750 09/08/06 (3,614)
--------
Total Forward Purchase Commitments
(Cost $3,228,778)................................... $ 3,222
========
</TABLE>
B. CLOSED BUT UNSETTLED FORWARD COMMITMENTS--In certain situations, the Fund has
entered into closing 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 foreign currency
difference on the trade is marked to market daily
50
<PAGE> 52
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
and included as a component of unrealized appreciation/depreciation on foreign
currency translation.
The following closed but unsettled forward transactions were still
outstanding as of June 30, 1999.
<TABLE>
<CAPTION>
LOCAL CURRENCY US$ NET
-------------------- UNREALIZED RECEIVABLE
DESCRIPTION/CURRENCY RECEIVABLE PAYABLE GAIN/LOSS (PAYABLE)
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AUSTRALIA (COMMONWEALTH)--Australian Dollar
(100,000 par, 7.500%, 07/15/05)... 108,539 111,749 $(30) $ (2,122)
ITALY (REPUBLIC OF)--Italian Lira
(300,000 par, 6.250%, 03/01/02)... 329,633 331,889 73 (2,326)
---- --------
$ 43 $ (4,448)
==== ========
</TABLE>
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 forwards.
The following forward currency contracts were outstanding as of June 30,
1999:
<TABLE>
<CAPTION>
UNREALIZED
CURRENT APPRECIATION/
DESCRIPTION VALUE DEPRECIATION
- ------------------------------------------------------------------------
<S> <C> <C>
LONG CONTRACTS
Australian Dollar,
295,178 expiring 07/01/99................. $ 195,130 $ 4,031
90,000 expiring 07/09/99.................. 59,500 3,012
Canadian Dollar,
125,000 expiring 07/13/99................. 84,905 1,572
150,000 expiring 09/09/99................. 101,971 (1)
Danish Krone,
785,000 expiring 07/12/99................. 108,925 (6,110)
1,500,000 expiring 09/14/99............... 208,981 (3,891)
Euro Currency,
1,755,000 expiring 07/19/99............... 1,811,632 (80,855)
128,000 expiring 09/10/99................. 132,658 (52)
</TABLE>
51
<PAGE> 53
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
UNREALIZED
CURRENT APPRECIATION/
DESCRIPTION VALUE DEPRECIATION
- ------------------------------------------------------------------------
<S> <C> <C>
Pound Sterling,
115,000 expiring 07/14/99................. $ 181,284 $ (4,499)
95,000 expiring 09/09/99.................. 149,823 (2,705)
Japanese Yen,
4,248,000 expiring 08/24/99............... 35,394 748
30,353,000 expiring 08/24/99.............. 252,897 (4,615)
55,000,000 expiring 09/14/99.............. 459,737 (9,466)
8,208,000 expiring 09/16/99............... 68,631 (1,812)
12,423,600 expiring 09/16/99.............. 103,880 (660)
Swedish Krona,
750,000 expiring 07/15/99................. 88,429 (2,189)
1,200,000 expiring 09/14/99............... 142,020 (311)
---------- ---------
$4,185,797 (107,803)
---------- ---------
SHORT CONTRACTS
Australian Dollar,
295,178 expiring 07/01/99................. 195,130 (10,130)
Euro Currency,
30,000 expiring 07/19/99.................. 30,968 882
50,000 expiring 07/19/99.................. 51,613 1,970
230,000 expiring 07/19/99................. 237,422 4,228
50,000 expiring 07/19/99.................. 51,613 922
---------- ---------
$ 566,746 (2,128)
========== ---------
$(109,931)
=========
</TABLE>
D. FUTURES CONTRACTS--A futures contract is an agreement involving the delivery
of a particular asset on a specified future date at an agreed upon price. The
Fund generally invests in stock index futures as a substitute for purchasing and
selling specific securities. Upon entering into futures contracts, the Fund
maintains, in a segregated account with its custodian, securities with a value
equal to its obligation under the futures contracts. During the period the
futures contract is open, payments are periodically received from or made to the
broker based upon changes in the value of the contract (the variation margin).
The risk of loss associated with a futures contract is in excess of the
variation margin reflected on the Statement of Assets and Liabilities.
52
<PAGE> 54
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Transactions in futures contracts for the six months ended June 30, 1999,
were as follows:
<TABLE>
<CAPTION>
CONTRACTS
- ----------------------------------------------------------------------
<S> <C>
Outstanding at December 31, 1998............................ 5
Futures Opened.............................................. 84
Futures Closed.............................................. (74)
Futures Split (Matif CAC 40 8-for-1)........................ 7
---
Outstanding at June 30, 1999................................ 22
===
</TABLE>
The futures contracts outstanding as of June 30, 1999, and the descriptions
and unrealized appreciation/depreciation are as follows:
<TABLE>
<CAPTION>
UNREALIZED
APPRECIATION/
CONTRACTS DEPRECIATION
- -------------------------------------------------------------------------
<S> <C> <C>
OSA NIKKEI 300
September 1999--Long Contracts
(Current Notional Value of 2,771,000 JPY
per contract)........................... 21 $ 24,668
EUX-DAX
September 1999--Long Contract
(Current Notional Value of 134,713 EUR per
contract)............................... 1 3,388
-- -----------
22 $ 28,056
== ===========
</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 June 30, 1999, are payments retained by Van Kampen of approximately
$39,400.
53
<PAGE> 55
VAN KAMPEN FUNDS
EQUITY FUNDS
Domestic
Aggressive Equity
Aggressive Growth
American Value
Comstock
Emerging Growth
Enterprise
Equity Growth
Equity Income
Growth
Growth and Income
Harbor
Pace
Real Estate Securities
Small Cap Value
Technology
Utility
Value
Global/International
Asian Growth
Emerging Markets
European Equity
Global Equity
Global Equity Allocation
Global Franchise
Global Managed Assets
International Magnum
Latin American
FIXED-INCOME FUNDS
Income
Corporate Bond
Global Fixed Income
Global Government Securities
Government Securities
High Income Corporate Bond
High Yield
High Yield & Total Return
Limited Maturity Government
Short-Term Global Income
Strategic Income
U.S. Government
U.S. Government Trust for Income
Worldwide High Income
Tax Exempt Income
California Insured Tax Free
Florida Insured Tax Free Income
High Yield Municipal
Insured Tax Free Income
Intermediate Term Municipal Income
Municipal Income
New York Tax Free Income
Pennsylvania Tax Free Income
Tax Free High Income
Capital Preservation
Reserve
Tax Free Money
SENIOR LOAN FUNDS
Prime Rate Income Trust
Senior Floating Rate
To find out more about any of these funds, ask your financial advisor for a
prospectus, which contains more complete information, including sales charges,
risks and expenses. Please read carefully before you invest or send money.
To view a current Van Kampen fund prospectus or to receive additional fund
information, choose from one of the following:
- - visit our Web site at WWW.VANKAMPEN.COM--to view a prospectus, select
Download Prospectus
- - call us at 1-800-341-2911 weekdays from 7:00 a.m. to 7:00 p.m. Central time.
Telecommunications Device for the Deaf users, call 1-800-421-2833.
- - e-mail us by visiting WWW.VANKAMPEN.COM and selecting Contact Us
54
<PAGE> 56
GLOBAL MANAGED ASSETS FUND
BOARD OF TRUSTEES
J. MILES BRANAGAN
JERRY D. CHOATE
RICHARD M. DEMARTINI*
LINDA HUTTON HEAGY
R. CRAIG KENNEDY
JACK E. NELSON
DON G. POWELL*
PHILLIP B. ROONEY
FERNANDO SISTO
WAYNE W. WHALEN* - Chairman
SUSANNE H. WOOLSEY, PH.D.
PAUL G. YOVOVICH
OFFICERS
RICHARD F. POWERS, III*
President
DENNIS J. MCDONNELL*
Executive Vice President and
Chief Investment Officer
A. THOMAS SMITH III*
Vice President and Secretary
JOHN L. SULLIVAN*
Vice President, Treasurer and Chief
Financial Officer
CURTIS W. MORRELL*
Vice President and Chief Accounting Officer
TANYA M. LODEN*
Controller
PETER W. HEGEL*
PAUL R. WOLKENBERG*
EDWARD C. WOOD, III*
Vice Presidents
INVESTMENT ADVISER
VAN KAMPEN
ASSET MANAGEMENT INC.
1 Parkview Plaza
P.O. Box 5555
Oakbrook Terrace, Illinois 60181-5555
INVESTMENT SUBADVISER
MORGAN STANLEY DEAN WITTER INVESTMENT MANAGEMENT INC.
1585 Broadway
New York, New York 10036
DISTRIBUTOR
VAN KAMPEN FUNDS INC.
1 Parkview Plaza
P.O. Box 5555
Oakbrook Terrace, Illinois 60181-5555
SHAREHOLDER SERVICING AGENT
VAN KAMPEN INVESTOR
SERVICES INC.
P.O. Box 218256
Kansas City, Missouri 64121-8256
CUSTODIAN
STATE STREET BANK
AND TRUST COMPANY
225 Franklin Street
P.O. Box 1713
Boston, Massachusetts 02105
LEGAL COUNSEL
SKADDEN, ARPS, SLATE,
MEAGHER & FLOM (ILLINOIS)
333 West Wacker Drive
Chicago, Illinois 60606
INDEPENDENT ACCOUNTANTS
PRICEWATERHOUSECOOPERS LLP
200 E. Randolph Drive
Chicago, Illinois 60601
* "Interested" persons of the
Fund, as defined in the
Investment Company Act of 1940.
(C) Van Kampen Funds Inc., 1999
All rights reserved.
(SM) denotes a service mark of
Van Kampen Funds Inc.
This report is submitted for the general information of the shareholders of the
Fund. It is not authorized for distribution to prospective investors unless it
has been preceded or is accompanied by an effective prospectus of the Fund which
contains additional information on how to purchase shares, the sales charge, and
other pertinent data. After December 31, 1999, the report, if used with
prospective investors, must be accompanied by a quarterly performance update, if
applicable.
55
<PAGE> 57
YEAR 2000 READINESS DISCLOSURE
Like other mutual funds, financial and business organizations, and individuals
around the world, the Fund could be adversely affected if the computer systems
used by the Fund's investment adviser and other service providers do not
properly process and calculate date-related information and data from and after
January 1, 2000. This is commonly known as the "Year 2000 Problem." The Fund's
investment adviser is taking steps that it believes are reasonably designed to
address the Year 2000 Problem with respect to computer systems that it uses and
to obtain reasonable assurances that comparable steps are being taken by the
Fund's other major service providers. At this time, there can be no assurances
that these steps will be sufficient to avoid any adverse impact to the Fund. In
addition, the Year 2000 Problem may adversely affect the markets and the issuers
of securities in which the Fund may invest that, in turn, may adversely affect
the net asset value of the Fund. Improperly functioning trading systems may
result in settlement problems and liquidity issues. In addition, corporate and
governmental data processing errors may result in production problems for
individual companies or issuers and overall economic uncertainty. Earnings of
individual issuers will be affected by remediation costs, which may be
substantial and may be reported inconsistently in U.S. and foreign financial
statements. Accordingly, the Fund's investments may be adversely affected. The
statements above are subject to the Year 2000 Information and Readiness
Disclosure Act which may limit the legal rights regarding the use of such
statements in the case of dispute.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000917547
<NAME> GLOBAL MANAGED CLASS A
<SERIES>
<NUMBER> 11
<NAME> GLOBAL MANAGED CLASS A
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<INVESTMENTS-AT-COST> 15,246,526<F1>
<INVESTMENTS-AT-VALUE> 17,388,537<F1>
<RECEIVABLES> 222,291<F1>
<ASSETS-OTHER> 0<F1>
<OTHER-ITEMS-ASSETS> 37,209<F1>
<TOTAL-ASSETS> 17,648,037<F1>
<PAYABLE-FOR-SECURITIES> 1,438<F1>
<SENIOR-LONG-TERM-DEBT> 0<F1>
<OTHER-ITEMS-LIABILITIES> 429,555<F1>
<TOTAL-LIABILITIES> 430,993<F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 5,378,448
<SHARES-COMMON-STOCK> 680,271
<SHARES-COMMON-PRIOR> 820,473
<ACCUMULATED-NII-CURRENT> (196,877)<F1>
<OVERDISTRIBUTION-NII> 0<F1>
<ACCUMULATED-NET-GAINS> 331,914<F1>
<OVERDISTRIBUTION-GAINS> 0<F1>
<ACCUM-APPREC-OR-DEPREC> 1,978,480<F1>
<NET-ASSETS> 6,888,704
<DIVIDEND-INCOME> 132,222<F1>
<INTEREST-INCOME> 144,594<F1>
<OTHER-INCOME> 0<F1>
<EXPENSES-NET> (425,254)<F1>
<NET-INVESTMENT-INCOME> (148,438)<F1>
<REALIZED-GAINS-CURRENT> 490,715<F1>
<APPREC-INCREASE-CURRENT> (238,207)<F1>
<NET-CHANGE-FROM-OPS> 104,070<F1>
<EQUALIZATION> 0<F1>
<DISTRIBUTIONS-OF-INCOME> (25,278)
<DISTRIBUTIONS-OF-GAINS> (184,723)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 96,243
<NUMBER-OF-SHARES-REDEEMED> (256,220)
<SHARES-REINVESTED> 19,775
<NET-CHANGE-IN-ASSETS> (1,594,486)
<ACCUMULATED-NII-PRIOR> (23,161)<F1>
<ACCUMULATED-GAINS-PRIOR> 324,917<F1>
<OVERDISTRIB-NII-PRIOR> 0<F1>
<OVERDIST-NET-GAINS-PRIOR> 0<F1>
<GROSS-ADVISORY-FEES> 88,574<F1>
<INTEREST-EXPENSE> 0<F1>
<GROSS-EXPENSE> 425,254<F1>
<AVERAGE-NET-ASSETS> 7,412,081
<PER-SHARE-NAV-BEGIN> 10.339
<PER-SHARE-NII> (0.063)
<PER-SHARE-GAIN-APPREC> 0.166
<PER-SHARE-DIVIDEND> (0.038)
<PER-SHARE-DISTRIBUTIONS> (0.278)
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 10.126
<EXPENSE-RATIO> 4.17
<FN>
<F1>This item relates to the Fund on a composite basis and not on a class basis.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000917547
<NAME> GLOBAL MANAGED CLASS B
<SERIES>
<NUMBER> 12
<NAME> GLOBAL MANAGED CLASS B
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<INVESTMENTS-AT-COST> 15,246,526<F1>
<INVESTMENTS-AT-VALUE> 17,388,537<F1>
<RECEIVABLES> 222,291<F1>
<ASSETS-OTHER> 0<F1>
<OTHER-ITEMS-ASSETS> 37,209<F1>
<TOTAL-ASSETS> 17,648,037<F1>
<PAYABLE-FOR-SECURITIES> 1,438<F1>
<SENIOR-LONG-TERM-DEBT> 0<F1>
<OTHER-ITEMS-LIABILITIES> 429,555<F1>
<TOTAL-LIABILITIES> 430,993<F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 8,315,238
<SHARES-COMMON-STOCK> 893,366
<SHARES-COMMON-PRIOR> 959,264
<ACCUMULATED-NII-CURRENT> (196,877)<F1>
<OVERDISTRIBUTION-NII> 0<F1>
<ACCUMULATED-NET-GAINS> 331,914<F1>
<OVERDISTRIBUTION-GAINS> 0<F1>
<ACCUM-APPREC-OR-DEPREC> 1,978,480<F1>
<NET-ASSETS> 8,777,080
<DIVIDEND-INCOME> 132,222<F1>
<INTEREST-INCOME> 144,594<F1>
<OTHER-INCOME> 0<F1>
<EXPENSES-NET> (425,254)<F1>
<NET-INVESTMENT-INCOME> (148,438)<F1>
<REALIZED-GAINS-CURRENT> 490,715<F1>
<APPREC-INCREASE-CURRENT> (238,207)<F1>
<NET-CHANGE-FROM-OPS> 104,070<F1>
<EQUALIZATION> 0<F1>
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (257,045)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 60,448
<NUMBER-OF-SHARES-REDEEMED> (149,875)
<SHARES-REINVESTED> 23,529
<NET-CHANGE-IN-ASSETS> (852,390)
<ACCUMULATED-NII-PRIOR> (23,161)<F1>
<ACCUMULATED-GAINS-PRIOR> 324,917<F1>
<OVERDISTRIB-NII-PRIOR> 0<F1>
<OVERDIST-NET-GAINS-PRIOR> 0<F1>
<GROSS-ADVISORY-FEES> 88,574<F1>
<INTEREST-EXPENSE> 0<F1>
<GROSS-EXPENSE> 425,254<F1>
<AVERAGE-NET-ASSETS> 9,274,188
<PER-SHARE-NAV-BEGIN> 10.038
<PER-SHARE-NII> (0.097)
<PER-SHARE-GAIN-APPREC> 0.161
<PER-SHARE-DIVIDEND> 0.000
<PER-SHARE-DISTRIBUTIONS> (0.278)
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 9.824
<EXPENSE-RATIO> 5.08
<FN>
<F1>This item relates to the Fund on a composite basis and not on a class basis
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000917547
<NAME> GLOBAL MANAGED CLASS C
<SERIES>
<NUMBER> 13
<NAME> GLOBAL MANAGED CLASS C
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<INVESTMENTS-AT-COST> 15,246,526<F1>
<INVESTMENTS-AT-VALUE> 17,388,537<F1>
<RECEIVABLES> 222,291<F1>
<ASSETS-OTHER> 0<F1>
<OTHER-ITEMS-ASSETS> 37,209<F1>
<TOTAL-ASSETS> 17,648,037<F1>
<PAYABLE-FOR-SECURITIES> 1,438<F1>
<SENIOR-LONG-TERM-DEBT> 0<F1>
<OTHER-ITEMS-LIABILITIES> 429,555<F1>
<TOTAL-LIABILITIES> 430,993<F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,409,841
<SHARES-COMMON-STOCK> 157,304
<SHARES-COMMON-PRIOR> 143,961
<ACCUMULATED-NII-CURRENT> (196,877)<F1>
<OVERDISTRIBUTION-NII> 0<F1>
<ACCUMULATED-NET-GAINS> 331,914<F1>
<OVERDISTRIBUTION-GAINS> 0<F1>
<ACCUM-APPREC-OR-DEPREC> 1,978,480<F1>
<NET-ASSETS> 1,551,260
<DIVIDEND-INCOME> 132,222<F1>
<INTEREST-INCOME> 144,594<F1>
<OTHER-INCOME> 0<F1>
<EXPENSES-NET> (425,254)<F1>
<NET-INVESTMENT-INCOME> (148,438)<F1>
<REALIZED-GAINS-CURRENT> 490,715<F1>
<APPREC-INCREASE-CURRENT> (238,207)<F1>
<NET-CHANGE-FROM-OPS> 104,070<F1>
<EQUALIZATION> 0<F1>
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (41,950)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 28,492
<NUMBER-OF-SHARES-REDEEMED> (18,252)
<SHARES-REINVESTED> 3,103
<NET-CHANGE-IN-ASSETS> 103,481
<ACCUMULATED-NII-PRIOR> (23,161)<F1>
<ACCUMULATED-GAINS-PRIOR> 324,917<F1>
<OVERDISTRIB-NII-PRIOR> 0<F1>
<OVERDIST-NET-GAINS-PRIOR> 0<F1>
<GROSS-ADVISORY-FEES> 88,574<F1>
<INTEREST-EXPENSE> 0<F1>
<GROSS-EXPENSE> 425,254<F1>
<AVERAGE-NET-ASSETS> 1,485,867
<PER-SHARE-NAV-BEGIN> 10.057
<PER-SHARE-NII> (0.096)
<PER-SHARE-GAIN-APPREC> 0.179
<PER-SHARE-DIVIDEND> 0.000
<PER-SHARE-DISTRIBUTIONS> (0.278)
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 9.862
<EXPENSE-RATIO> 5.17
<FN>
<F1>This item relates to the Fund on a composite basis and not on a class basis.
</FN>
</TABLE>
