-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, J7fy2oEHSt5zg8ecfcxdmqY91hZ43bLdlnI9PRTiplkfccBntTMaUjSeHEgxkYkQ Nbolskml9xj/KG3B4LWBYQ== 0000950131-97-005229.txt : 19970825 0000950131-97-005229.hdr.sgml : 19970825 ACCESSION NUMBER: 0000950131-97-005229 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970822 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERICAN CAPITAL EXCHANGE FUND CENTRAL INDEX KEY: 0000005100 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 741908071 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-02611 FILM NUMBER: 97668427 BUSINESS ADDRESS: STREET 1: 2800 POST OAK BLVD STREET 2: 46TH FL CITY: HOUSTON STATE: TX ZIP: 77056 BUSINESS PHONE: 7139930500 MAIL ADDRESS: STREET 1: 2800 POST OAK BLVD STREET 2: 46TH FL CITY: HOUSTON STATE: TX ZIP: 77056 FORMER COMPANY: FORMER CONFORMED NAME: AMERICAN GENERAL EXCHANGE FUND DATE OF NAME CHANGE: 19831101 N-30D 1 EXCHANGE FUND SEMI-ANNUAL REPORT JUNE 1997 Table of Contents
Letter to Shareholders..................................................... 1 Performance Results........................................................ 3 Portfolio of Investments................................................... 4 Statement of Assets and Liabilities........................................ 6 Statement of Operations.................................................... 7 Statement of Changes in Net Assets......................................... 8 Financial Highlights....................................................... 9 Notes to Financial Statements.............................................. 10
EXCH SAR 8/97 Letter to Shareholders July 30, 1997 [PHOTO OF Dennis J. McDonnell and Don G. Powell] Dear Shareholder, As you know, Van Kampen American Capital was acquired by Morgan Stanley Group Inc., a world leader in asset management. On February 5, 1997, Morgan Stanley Group Inc. and Dean Witter, Discover & Co. agreed to merge; the merger was completed on May 31, creating the combined company of Morgan Stanley, Dean Witter, Discover & Co. This preeminent global financial services firm boasts a market capitalization of $21 billion and leading market positions in securities, asset management, and credit services. Additionally, I am very pleased to announce that Philip N. Duff, formerly the chief financial officer of Morgan Stanley, has joined Van Kampen American Capital as president and chief executive officer. I will continue as chairman of the firm. As the financial industry continues to witness unprecedented consolidations and new partnerships, we believe that those firms who are leaders in all facets of their business will be able to offer investors the greatest opportunities and services as we move into the next century. We are confident that these changes will continue to work to the benefit of our fund shareholders as we move into the next century. Economic Review Stocks rallied dramatically higher during the first half of 1997, lifting major market indexes once again to record highs. As of June 30, the Standard & Poor's 500-Stock Index was up 19.5 percent; however, it was a fairly volatile climb. At the beginning of the year, continued strong economic growth, rising corporate earnings, and constant large flows of new money into the market lifted stock prices higher. But by February, strong growth fueled fears of an interest rate hike by the Federal Reserve Board, causing stocks and bonds to retreat. The Fed raised rates a modest quarter percentage point in late March, which the market viewed as the first of several rounds of credit tightening. As a result, the downturn continued, and by mid-April, stocks had given back all of their earlier 1997 gains. The situation reversed itself again in early May after first-quarter growth was reported to have surged to 5.9 percent with little sign of renewed inflation. Stocks eventually set new highs following the Fed's decision not to raise rates again in May. For most of the six-month period, large-capitalization stocks out performed small-cap and mid-cap stocks, although the latter staged a comeback in May and June. Fund Strategy The Fund is a California limited partnership that is closed to new investors. Its portfolio of 33 large-capitalization stocks remains heavily invested in Intel Corp., a manufacturer of semiconductors, which accounts for about 26 percent of the Fund's long-term investments. Pharmaceutical 1 Continued on page two stocks are another large component, accounting for approximately 28 percent of the Fund's long-term investments. These stocks include Johnson & Johnson, Merck, Schering-Plough, and Warner-Lambert. Activity that occurred during the six-month period was limited to exchanges of stock in order to facilitate the redemption of shares. Because of its size and recent gain, Intel was sold for this purpose. Performance Summary For the six-month period ended June 30, 1997, the Fund generated a total return at net asset value of 14.57 percent/1/. This return reflects an increase in net asset value per share from $205.35 on December 31, 1996, to $234.60 on June 30, 1997. By comparison, the Standard & Poor's 500-Stock Index produced a total return of 19.5 percent for the same period. Keep in mind that this is a broad-based, unmanaged index reflecting general stock market performance, and does not reflect any commissions or fees that would be incurred by an investor purchasing the securities it represents. Outlook We believe the stock market will continue to advance during the second half of 1997, although the rally may not be as strong as it was during the first half of the year. We continue to see strength in the economy, but we do not expect the 5.9 percent growth pace of the first quarter to be repeated in the remaining quarters of 1997. While labor productivity and manufacturing remained strong in the second quarter, retail sales fell, and the unemployment rate, which had slipped in April and May, edged back up in June. We anticipate that growth will accelerate again during the second half of the year due to the economy's strong underlying fundamentals, including consumer confidence, job growth, and moderate inflation. As a result, we believe corporate earnings will continue to rise. At the same time, we believe there is a chance that the Fed may raise rates again before year end, which could potentially pressure stock and bond prices. Despite that possibility, we believe that the outlook for many of the sectors in which the Fund is invested, including pharmaceuticals, health care, and technology stocks, remains favorable. Thank you for your continued confidence in your investment with Van Kampen American Capital. Sincerely, /s/ Don G. Powell /s/ Dennis J. McDonnell Don G. Powell Dennis J. McDonnell Chairman President Van Kampen American Capital Van Kampen American Capital Asset Management, Inc. Asset Management, Inc. 2 Performances Results for the Period Ended June 30, 1997 Van Kampen American Capital Exchange Fund
Total Returns Six-month total return/1/............................................ 14.57% One-year total return/1/............................................. 41.45% Five-year average annual total return/1/............................. 20.44% Ten-year average annual total return/1/.............................. 15.23% Life-of-Fund average annual total return/1/.......................... 14.70% Commencement Date.................................................... 12/16/76
/1/Total return based on net asset value (NAV) assumes an investment at the beginning of the period indicated, reinvestment of all distributions for the period, and sale of all shares at the end of the period, all at NAV. See the Prior Performance section of the current prospectus. Past performance does not guarantee future results. Investment return and net asset value will fluctuate with market conditions. Fund shares, when redeemed, may be worth more or less than their original cost. Market forecasts provided in this report may not necessarily come to pass. 3 Portfolio of Investments June 30, 1997 (Unaudited)
============================================================================ Number Description of Shares Market Value - ---------------------------------------------------------------------------- Common Stocks 95.0% Consumer Distribution 4.1% Ikon Office Solutions, Inc..................... 86,993 $2,169,388 Unisource Worldwide, Inc....................... 43,496 695,936 ---------- 2,865,324 ---------- Consumer Durables 0.7% Dana Corp...................................... 13,677 519,726 ---------- Consumer Non-Durables 5.3% International Flavours & Fragrances, Inc....... 49,712 2,510,456 McCormick & Co., Inc........................... 48,259 1,218,540 ---------- 3,728,996 ---------- Consumer Services 0.4% Luby's Cafeterias, Inc......................... 13,367 266,505 ---------- Energy 13.3% Amerada Hess Corp.............................. 21,200 1,177,925 Amoco Corp..................................... 12,800 1,112,800 Apache Corp.................................... 11,406 370,695 Baker Hughes, Inc.............................. 25,634 991,715 Dresser Industries, Inc........................ 30,320 1,129,420 Kerr McGee Corp................................ 10,900 690,788 Mobil Corp..................................... 40,262 2,813,307 Schlumberger, Ltd.............................. 8,040 1,005,000 ---------- 9,291,650 ---------- Finance 3.3% American International Group, Inc.............. 9,882 1,476,123 Household International, Inc................... 7,124 836,625 ---------- 2,312,748 ---------- Healthcare 26.8% Allegiance Corp................................ 1,000 27,250 American Home Products Corp.................... 28,000 2,142,000 Baxter International, Inc...................... 5,000 261,250 Johnson & Johnson, Inc......................... 54,432 3,504,060 Merck & Co., Inc............................... 25,188 2,606,958
4 See Notes to Financial Statements Portfolio of Investments (Continued) June 30, 1997 (Unaudited)
============================================================================== Number Description of Shares Market Value - ------------------------------------------------------------------------------ Healthcare (Continued) Schering-Plough Corp........................... 102,608 $ 4,912,358 Warner-Lambert Co.............................. 42,430 5,271,927 ----------- 18,725,803 ----------- Producer Manufacturing 1.8% AlliedSignal, Inc.............................. 6,264 526,176 Fluor Corp..................................... 12,831 708,111 ----------- 1,234,287 ----------- Raw Materials/Processing Industries 12.2% Air Products & Chemicals, Inc.................. 54,545 4,431,781 Alcan Aluminum, Ltd............................ 10,774 373,723 Georgia Pacific Corp........................... 18,688 1,595,488 Louisiana Pacific Corp......................... 25,970 548,616 Lubrizol Corp.................................. 37,620 1,577,689 ----------- 8,527,297 ----------- Technology 27.1% General Signal Corp............................ 20,000 872,500 Intel Corp..................................... 122,512 17,373,733 International Business Machines Corp........... 7,508 677,128 ----------- 18,923,361 ----------- Total Long-Term Investments (Cost $7,444,060).............................................. 66,395,697 ----------- Short-Term Investments 5.0% General Electric Capital Corp. ($1,515,000 par, yielding 6.05%, 07/01/1997 maturity)........................... 1,514,745 Prudential Funding Corp. ($2,000,000 par, yielding 6.03%, 07/01/1997 maturity).................................... 1,999,665 ----------- Total Short-Term Investments (Cost $3,514,410).............................................. 3,514,410 ----------- Total Investments 100.0% (Cost $10,958,470)............................................. 69,910,107 Liabilities in Excess of Other Assets 0.0%....................... (6,930) ----------- Net Assets 100.0%................................................ $69,903,177 ===========
5 See Notes to Financial Statements Statement of Assets and Liabilities June 30, 1997 (Unaudited) =============================================================================
Assets: Total Investments (Cost $10,958,470)........................... $69,910,107 Cash........................................................... 4,096 Receivables: Investments Sold............................................. 99,978 Dividends.................................................... 67,525 Other.......................................................... 679 ----------- Total Assets............................................... 70,082,385 ----------- Liabilities: Payables: Fund Shares Repurchased...................................... 100,000 Investment Advisory Fee...................................... 28,566 Affiliates................................................... 3,126 Income Distributions......................................... 1,305 Retirement Plan................................................ 30,365 Accrued Expenses............................................... 15,846 ----------- Total Liabilities.......................................... 179,208 ----------- Net Assets..................................................... $69,903,177 =========== Net Assets Were Comprised of: 293,938 units of limited partnership interest.................. $68,958,085 3,534 units of non-managing general partnership interest....... 828,944 495 units of managing general partnership interest............. 116,148 ----------- Net Assets..................................................... $69,903,177 =========== Net Asset Value Per Unit ($69,903,177 divided by 297,967 units of partnership interest outstanding)...................................... $ 234.60 ===========
6 See Notes to Financial Statements Statement of Operations For the Six Months Ended June 30, 1997 (Unaudited) ================================================================================
Investment Income: Dividends......................................................... $ 445,720 Interest.......................................................... 89,675 ----------- Total Income.................................................. 535,395 ----------- Expenses: Investment Advisory Fee........................................... 164,873 Managing General Partners' Fees and Expenses...................... 38,650 Shareholder Services.............................................. 7,982 Custody........................................................... 6,582 Legal............................................................. 2,494 Other............................................................. 33,037 ----------- Total Expenses................................................ 253,618 ----------- Net Investment Income............................................. $ 281,777 =========== Realized and Unrealized Gain/Loss Net Realized Gain................................................. $ 3,068,888 ----------- Unrealized Appreciation/Depreciation: Beginning of the Period......................................... 53,335,307 End of the Period............................................... 58,951,637 ----------- Net Unrealized Appreciation During the Period..................... 5,616,330 ----------- Net Realized and Unrealized Gain.................................. $ 8,685,218 =========== Net Increase in Net Assets From Operations........................ $ 8,966,995 ===========
7 See Notes to Financial Statements
Statement of Changes in Net Assets For the Six Months Ended June 30, 1997 and the Year Ended December 31, 1996 (Unaudited) ============================================================================== Six Months Ended Year Ended June 30, 1997 December 31, 1996 - ------------------------------------------------------------------------------ From Investment Activities: Operations: Net Investment Income..................... $ 281,777 $ 457,374 Net Realized Gain......................... 3,068,888 1,864,174 Net Unrealized Appreciation During the Period....................... 5,616,330 14,427,053 ----------- ----------- Change in Net Assets from Operations...... 8,966,995 16,748,601 Distributions from Net Investment Income.. (192,075) (393,524) ----------- ----------- Net Change in Net Assets from Investment Activities................... 8,774,920 16,355,077 ----------- ----------- From Partnership Unit Transactions: Proceeds from Units Issued Through Dividend Reinvestment................... 25,259 52,164 Cost of Units Repurchased................. (663,836) (2,395,079) ----------- ----------- Net Change in Net Assets from Partnership Unit Transactions........... (638,577) (2,342,915) ----------- ----------- Total Increase in Net Assets.............. 8,136,343 14,012,162 Net Assets: Beginning of the Period................... 61,766,834 47,754,672 =========== =========== End of the Period (Including accumulated undistributed net investment income of $2,523,120 and $2,433,418, respectively)............... $69,903,177 $61,766,834 =========== =========== Change in Partnership Units Outstanding: Units Issued Through Dividend Reinvestment............................ 113 313 Units Repurchased......................... (2,936) (13,938) ----------- ----------- Decrease in Partnership Units Outstanding (2,823) (13,625) ----------- -----------
8 See Notes to Financial Statments Financial Highlights The following schedule presents financial highlights for one unit of partnership interest outstanding throughout the periods indicated. (Unaudited)
============================================================================================================= Six Months Ended Year Ended December 31 (a) June 30, 1997 (a) 1996 1995 1994 1993 - ------------------------------------------------------------------------------------------------------------- Net Asset Value, Beginning of the Period............ $205.349 $ 151.88 $115.36 $111.32 $104.40 -------- -------- ------- ------- ------- Net Investment Income............................. .940 1.488 1.62 1.62 1.49 Net Realized and Unrealized Gain.................. 28.951 53.261 36.18 3.70 6.71 -------- -------- ------- ------- ------- Total from Investment Operations.................... 29.891 54.749 37.80 5.32 8.20 Less Distributions from Net Investment Income....... .64 1.280 1.28 1.28 1.28 -------- -------- ------- ------- ------- Net Asset Value, End of the Period.................. $234.600 $205.349 $151.88 $115.36 $111.32 ======== ======== ======= ======= ======= Total Return........................................ 14.57%* 36.21% 32.89% 4.82% 7.91% Net Assets at End of the Period (In millions)....... $ 69.9 $ 61.8 $ 47.8 $ 37.7 $ 38.5 Ratio of Expenses to Average Net Assets............. .77% .93% .88% .89% .93% Ratio of Net Investment Income to Average Net Assets................................ .85% .87% 1.16% 1.45% 1.38% Portfolio Turnover.................................. 0%* 0% 0% 0% 0%
(a) Based on average units outstanding. * Non-annualized During the six months ended June 30, 1997, the Fund incurred no brokerage commissions on equity share trades. This disclosure was not required in fiscal years prior to 1996. 9 See Notes to Financial Statements Notes to Financial Statements June 30, 1997 (Unaudited) =============================================================================== 1. Significant Accounting Policies Van Kampen American Capital Exchange Fund (the "Fund"), a California limited partnership is a partnership registered under the Investment Company Act of 1940, as amended, as a diversified open-end investment management company. The Fund seeks capital appreciation in a portfolio of common stock. The Fund commenced investment operations on December 16, 1976. 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. Fixed income investments are stated at value using market quotations. Unlisted securities and listed securities for which the last sales price is not available are valued at the mean between the last reported bid and ask price. 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 whereby the Fund acquires ownership of a debt security and the seller agrees to repurchase the security at a future time and specified price. The Fund may invest independently in repurchase agreements, or transfer uninvested cash balances into a pooled cash account along with other investment companies advised by Van Kampen American Capital Asset Management, Inc. (the "Adviser") or its affiliates, the daily aggregate of which is invested in repurchase agreements. Repurchase agreements are 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 the value of the underlying security at not less than the repurchase proceeds due the Fund. C. Investment Income-Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. Original issue discount is amortized over the life of each 10 Notes to Financial Statements (Continued) June 30, 1997 (Unaudited) ================================================================================ applicable security. Premiums on debt securities are not amortized. Market discounts are recognized at the time of sale as realized gains for book purposes and ordinary income for tax purposes. D. Federal Income Taxes-The Fund has met the qualifications to be classified as a partnership for federal income tax purposes and intends to maintain this qualification in the future. A partnership is not subject to federal income tax. At June 30, 1997, for federal income tax purposes the cost of long- and short-term investments is $10,958,470; the aggregate gross unrealized appreciation is $58,951,637 and the aggregate gross unrealized depreciation is $0, resulting in net unrealized appreciation of $58,951,637. E. Distribution of Income and Gains-Quarterly distributions to partners are recorded on the record date. Net investment income is allocated daily to each partner, relative to the total number of units held. Capital gains or losses will be allocated equally among units outstanding on the day recognized. 2. Investment Advisory Agreement and Other Transactions with Affiliates Under the terms of the Fund's Investment Advisory Agreement, Van Kampen American Capital Asset Management, Inc., the Adviser, will provide facilities and investment advice to the Fund for an annual fee payable monthly of .50% based on the average daily net assets of the Fund. For the six months ended June 30, 1997, the Fund recognized expenses of approximately $9,100 representing Van Kampen American Capital, Inc.'s or its affiliates' (collectively "VKAC") cost of providing accounting services to the Fund. These services are provided by VKAC at cost. ACCESS Investor Services, Inc. ("ACCESS"), an affiliate of the Adviser, serves as the shareholder servicing agent for the Fund. For the six months ended June 30, 1997, the Fund recognized expenses of approximately $7,500, representing ACCESS' cost of providing transfer agency and shareholder services plus a profit. Managing general partners (the "Partners") of the Fund who are not affiliated with the Adviser are compensated by the Fund at the annual rate of $5,000 plus a fee of $750 per Board meeting attended. The Partners of the Fund instituted a Retirement Plan effective April 1, 1996. The Plan is not funded, and obligations under the Plan will be paid solely out of the Fund's general accounts. The Fund will not reserve or set aside funds for the payment of its obligations under the Plan by any form of trust or escrow. For the current Partners not affiliated with the Adviser, the annual retirement benefit payable per year for a ten year period is based upon the highest total annual compensation received in any of the three calendar years preceding retirement. Partners with more than five but less than ten years service at retirement will receive a prorated reduced benefit. Under the Plan, for 11 Notes to Financial Statements (Continued) June 30, 1997 (Unaudited) =============================================================================== the Partners retiring with the effectiveness of the Plan, the annual retirement benefit payable per year for a ten year period is equal to 75% of the total compensation received from the Fund during the 1995 calendar year. At June 30, 1997, the Adviser and Van Kampen American Capital Exchange Corp., as non-managing general partners of the Fund, owned 354 and 3,180 units of partnership interest, respectively. 3. Investment Transactions During the period, the cost of purchases and proceeds from sales of investments, excluding short-term investments, were $-0- and $3,277,221, respectively. 12 Funds Distributed by Van Kampen American Capital GLOBAL AND INTERNATIONAL Global Equity Fund Global Government Securities Fund Global Managed Assets Fund Short-Term Global Income Fund Strategic Income Fund EQUITY Growth Aggressive Growth Fund Emerging Growth Fund Enterprise Fund Growth Fund Pace Fund Growth & Income Comstock Fund Equity Income Fund Growth and Income Fund Harbor Fund Real Estate Securities Fund Utility Fund FIXED INCOME Corporate Bond Fund Government Securities Fund High Income Corporate Bond Fund High Yield Fund Limited Maturity Government Fund Prime Rate Income Trust Reserve Fund U.S. Government Fund U.S. Government Trust for Income TAX-FREE California Insured Tax Free Fund Florida Insured Tax Free Income Fund High Yield Municipal Fund Insured Tax Free Income Fund Intermediate Term Municipal Income Fund Municipal Income Fund New Jersey Tax Free Income Fund New York Tax Free Income Fund Pennsylvania Tax Free Income Fund Tax Free High Income Fund Tax Free Money Fund MORGAN STANLEY FUND, INC. Aggressive Equity Fund American Value Fund Asian Growth Fund Emerging Markets Fund Global Equity Allocation Fund Global Fixed Income Fund High Yield Fund International Magnum Fund Latin American Fund U.S. Real Estate Fund Value Fund Worldwide High Income Fund Ask your investment representative for a prospectus containing more complete information, including sales charges and expenses. Please read it carefully before you invest or send money. Or call us weekdays from 7:00 a.m. to 7:00 p.m. Central time at 1-800-341-2911 for Van Kampen American Capital funds or Morgan Stanley retail funds. 13 Van Kampen American Capital Exchange Fund (California Limited Partnership) Managing General Partners Donald M. Carlton Stephen Randolph Gross Don G. Powell* Alan B. Shepard, Jr. Officers Don G. Powell* Chairman and Chief Executive Officer Dennis J. McDonnell* Executive Vice President Alan T. Sachtleben* Chief Investment Officer Edward C. Wood, III* Vice President and Chief Financial Officer Curtis W. Morell* Vice President and Chief Accounting Officer Peter W. Hegel* Ronald A. Nyberg* Vice Presidents John L. Sullivan* Treasurer Tanya M. Loden* Financial Officer Investment Adviser Van Kampen American Capital Asset Management, Inc. One Parkview Plaza Oakbrook Terrace, IL 60181 Shareholder Service Agent ACCESS Investor Services, Inc. P.O. Box 418256 Kansas City, Missouri 64141-9256 Custodian State Street Bank and Trust Co. 225 Franklin Street Boston, Massachusetts 02105 Non-Managing General Partners Van Kampen American Capital Exchange Corp. One Parkview Plaza Oakbrook Terrace, IL 60181 Van Kampen American Capital Asset Management, Inc. One Parkview Plaza Oakbrook Terrace, IL 60181 Independent Accountants KPMG Peat Marwick LLP NationsBank Center 700 Louisiana Houston, Texas 77210 Legal Counsel Sullivan & Worcester LLP 1025 Connecticut Ave., NW Washington, DC 20036 * "Interested" persons of the Fund, as defined in the Investment Company Act of 1940. (C) Van Kampen American Capital Distributors, Inc., 1997 All rights reserved. (SM) denotes a service mark of Van Kampen American Capital Distributors, Inc. 14 -----END PRIVACY-ENHANCED MESSAGE-----