<DOCUMENT>
<TYPE>N-30D
<SEQUENCE>1
<FILENAME>c69959nv30d.txt
<DESCRIPTION>SEMI-ANNUAL REPORT
<TEXT>
<PAGE>

<Table>
<S> <C>
Table of Contents

OVERVIEW
LETTER TO SHAREHOLDERS 1
ECONOMIC SNAPSHOT 2

PORTFOLIO AT A GLANCE
Q&A WITH YOUR PORTFOLIO MANAGERS 4

BY THE NUMBERS
YOUR FUND'S INVESTMENTS 7
FINANCIAL STATEMENTS 9
NOTES TO FINANCIAL STATEMENTS 15
REPORT OF INDEPENDENT AUDITORS 21

VAN KAMPEN INVESTMENTS
THE VAN KAMPEN FAMILY OF FUNDS 22
BOARD OF TRUSTEES AND IMPORTANT ADDRESSES 23
TRUSTEE AND OFFICER INFORMATION 24
</Table>

Given the market's ups and downs-- diversifying has never been more important.

This report must be preceded or accompanied by a prospectus for the fund being
offered.
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
<PAGE>

OVERVIEW

LETTER TO SHAREHOLDERS
June 20, 2002

Dear Shareholder,

We seem to be at an economic crossroads--good news about the economy and
earnings have been offset by escalating concerns abroad. Given the market's ups
and downs, taking steps so your portfolio can be properly diversified has never
been more important. So how do you decide what to do next?

Contact your financial advisor.

Your financial advisor can help you review your current asset allocation and
determine whether it remains appropriate for your goals, risk tolerance and time
horizon. Remember, while no portfolio is immune to volatility, owning a variety
of stock and fixed-income investments may help manage your portfolio's overall
risk and improve its long-term performance potential. When reviewing your
investment selections with your financial advisor, be sure to keep your
long-term goals in mind--don't let short-term volatility distract you from your
long-term retirement planning and investment goals.

Thank you for your continued trust in Van Kampen. We
appreciate the opportunity to help you and your loved ones
enjoy life's true wealth--family, friends and life's daily
pleasures.

Sincerely,

[SIG]
Richard F. Powers, III
President and CEO
Van Kampen Asset Management Inc.

1
<PAGE>

ECONOMIC SNAPSHOT

THE ECONOMY
THE ECONOMIC RECOVERY APPEARED TO CONTINUE ITS FORWARD PROGRESS THROUGHOUT MAY
2002, ALBEIT AT A SLOWER PACE. EMPLOYMENT AND MANUFACTURING ACTIVITY FOLLOWED
RECENT TRENDS AND RECORDED SLIGHT, BUT STEADY, IMPROVEMENT. HOME SALES AND
AUTOMOBILE PURCHASES, OFTEN VIEWED AS INDICATORS OF CONSUMER CONFIDENCE IN THE
ECONOMY, CONTINUED TO EXPAND BEYOND LEVELS SEEN IN THE FIRST QUARTER.

YET, AFTER THE FIRST QUARTER'S STRONG 5.6 PERCENT GROWTH IN GROSS DOMESTIC
PRODUCT, SOME MARKET OBSERVERS PREDICTED ECONOMIC ACTIVITY WOULD SLOW DURING THE
SECOND QUARTER--ONCE THE EFFECTS OF TAX REFUNDS, HOME REFINANCING AND
WARMER-THAN-ANTICIPATED WEATHER RAN THEIR COURSE.

WHILE UNSEASONABLY WARM TEMPERATURES CONTINUED INTO APRIL--GIVING CONSUMERS AN
EARLY START TO THE SUMMER SHOPPING SEASON--MAY'S UNUSUALLY COOL AND WET WEATHER
KEPT MANY SHOPPERS AT HOME. SINCE CONSUMERS DRIVE TWO-THIRDS OF U.S. ECONOMIC
ACTIVITY, THE EFFECTS OF THIS SPRING SLOWDOWN WERE QUICKLY EVIDENT. FOR EXAMPLE,
RETAIL AND AUTO SALES WERE DOWN IN MAY ALTHOUGH, WHEN COMBINED WITH APRIL'S
STRONG NUMBERS, THE TWO-MONTH TOTAL WAS STILL AHEAD OF FIRST-QUARTER LEVELS.

INFLATIONARY PRESSURES REMAINED SUBDUED THROUGHOUT THE REPORTING PERIOD THANKS
TO DRAMATIC INCREASES IN WORKER PRODUCTIVITY, RECEDING ENERGY PRICES AND
UNDER-UTILIZED MANUFACTURING CAPACITY.

2
<PAGE>

U.S. GROSS DOMESTIC PRODUCT

SEASONALLY ADJUSTED ANNUALIZED RATES

(March 31, 2000--March 31, 2002)

[BAR GRAPH]

<Table>
<Caption>
U.S. GROSS DOMESTIC PRODUCT
---------------------------
<S> <C>
Mar 00 4.8%
Jun 00 5.7%
Sep 00 1.3%
Dec 00 1.9%
Mar 01 1.3%
Jun 01 0.3%
Sep 01 -1.3%
Dec 01 1.7%
Mar 02 5.6%
</Table>

Source: Bureau of Economic Analysis

INTEREST RATES AND INFLATION

(May 31, 2000--May 31, 2002)

[LINE GRAPH]

<Table>
<Caption>
INTEREST RATES INFLATION
-------------- ---------
<S> <C> <C>
May 00 6.50 3.20
6.50 3.70
6.50 3.70
Aug 00 6.50 3.40
6.50 3.50
6.50 3.40
Nov 00 6.50 3.40
6.50 3.40
5.50 3.70
Feb 01 5.50 3.50
5.00 2.90
4.50 3.30
May 01 4.00 3.60
3.75 3.20
3.75 2.70
Aug 01 3.50 2.70
3.00 2.60
2.50 2.10
Nov 01 2.00 1.90
1.75 1.60
1.75 1.10
Feb 02 1.75 1.10
1.75 1.50
1.75 1.60
May 02 1.75 1.20
</Table>

Interest rates are represented by the closing midline federal funds target rate
on the last day of each month. Inflation is indicated by the annual percentage
change of the Consumer Price Index for all urban consumers at the end of each
month.

Source: Bloomberg

3
<PAGE>

Q&A WITH YOUR PORTFOLIO MANAGERS

WE RECENTLY SPOKE WITH THE PORTFOLIO MANAGEMENT TEAM FOR VAN KAMPEN RESERVE FUND
ABOUT THE KEY EVENTS AND ECONOMIC FORCES THAT SHAPED THE MARKETS AND INFLUENCED
THE FUND'S RETURN DURING THE 12-MONTH PERIOD ENDING MAY 31, 2002. MEMBERS OF THE
TEAM INCLUDE DALE ALBRIGHT, EXECUTIVE DIRECTOR, AND JONATHAN PAGE, MANAGING
DIRECTOR. THE FOLLOWING DISCUSSION REFLECTS THEIR VIEWS ON THE FUND'S
PERFORMANCE.

Q HOW WOULD YOU CHARACTERIZE THE
ECONOMIC AND MARKET CONDITIONS IN WHICH THE FUND OPERATED, AND HOW DID THE
FUND PERFORM DURING THE REPORTING PERIOD?

A Yields available from money
market securities continued to trend down during the fiscal year under review as
the Federal Open Market Committee (FOMC) lowered its federal funds target rate
six times for a total of 225 basis points. The majority of the reductions (175
basis points) took place after the tragic events of September 11. The FOMC's
federal funds target now stands at 1.75 percent, a 40-year low. These low yield
levels reflected the Federal Reserve's accommodative posture as it tried to
moderate the slowing pace of economic activity, which became evident during the
spring and summer of 2001, and the adverse effects of the September 11 terrorist
attacks.

During the early months of 2002, however, the economy showed clear signs of
recovery as it responded to stimulative monetary and fiscal initiatives. A
preliminary reading on first quarter real gross domestic product (GDP) indicated
that the economy grew at a 5.6 percent annual rate, as compared to growth of 1.7
percent in the fourth quarter of 2001 and contraction of 1.3 percent during the
third quarter of last year.

The May level for the Institute for Supply Management Purchasing Manager
Index was 55.7, the fourth consecutive reading above 50 and the first time that
has occurred since the four-month period of April through July, 2000. This index
is known for its timeliness and track record in marking turns in manufacturing
activity. Readings above 50 indicate expansion in manufacturing activity, and
four consecutive readings over 50 have historically indicated that our nation's
manufacturing sector is recovering.

Another positive sign for the economy was the Fed's formal economic
assessment at the March 19, 2002, FOMC meeting. At that meeting, the Fed changed
its economic assessment to one that indicates risks in the foreseeable future
are balanced with respect to meeting goals of price stability and sustainable
economic growth. Prior to

4
<PAGE>

PORTFOLIO COMPOSITION BY INVESTMENT TYPE

(as a percentage of total investments)

- Commercial [PIE CHART] - Commercial [PIE CHART]
Paper.............. 55.9% Paper........... 60.2%
- U.S. Government - U.S. Government
Agency............. 18.5% Agency.......... 22.0%
- Certificates of - Certificates of
Deposit............ 12.4% Deposit......... 13.6%
- Repurchase - Repurchase
Agreements......... 7.4% Agreements...... 1.4%
- Notes.............. 5.8% - Notes........... 2.8%
</Table>

that, their stance was weighted mainly toward economic weakness.

We believe the fund continued to serve as a useful investment for liquidity,
preservation of capital and a yield that reflected prevailing money market
conditions. As of May 31, 2002, the seven-day current yield was 0.97 percent for
Class A shares, 0.21 percent for Class B shares, and 0.20 percent for Class C
shares. For the 12 months ending May 31, 2002, the fund posted a total return at
net asset value of 1.93 percent for Class A shares, 1.16 percent for Class B
shares, and 1.23 percent for Class C shares. Including sales charges, the fund's
total return for Class B and C shares was -2.84 percent and 0.23 percent,
respectively. (No sales charge is assessed on purchases of Class A shares; be
advised that other charges may apply.)

Please note that the yield quotation more closely reflects the current
earnings of the fund than the total return quotation. Total return assumes
reinvestment of all distributions for the 12-month period ending May 31, 2002.
As a result of recent market activity, current performance may vary from the
figures shown. For more up-to-date information, please visit vankampen.com or
speak with your financial advisor. Past performance is no guarantee of future
results. Investment return and principal value will fluctuate and fund shares,
when redeemed, may be worth more or less than original cost.

Q HOW DID YOU MANAGE THE FUND
IN LIGHT OF THESE CONDITIONS?

A We have continued to invest the
fund in high-quality commercial paper, Federal agency obligations, overnight
repurchase agreements, and bank notes and negotiable certificates of deposit of
what we believe are financially strong commercial banks. Over the past fiscal
year, we raised our high credit standards even higher in the fund by using an
increased mix of Federal agency obligations, while at the same time attempting
to limit purchases of corporate obligations to only those

5
<PAGE>

issuers that possess both top short-term credit ratings and relatively high
long-term debt ratings.

Throughout the reporting period, our primary strategy has been to prudently
extend and maintain the average maturity of the portfolio. However, recent
economic data have begun to indicate a possible turnaround in the economy. As a
result, we allowed the fund's average maturity to decline slightly as interest
rates began to reflect some upward pressure. We believe this strategy should
position the fund to take better advantage of a possible rise in short-term
rates later this year. As of May 31, 2002, the fund's weighted average maturity
was 47 days and 83 percent of holdings were due to mature in less than three
months.

Q WHAT IS YOUR OUTLOOK FOR
THE MARKET OVER THE COMING MONTHS?

A We expect the pace of economic
activity during the next six months to begin to reflect some improvement as the
economy regains its footing. Barring further significant terrorist activity in
the world, we believe that consumer and business confidence should continue to
improve, resulting in a return to economic expansion. Such a recovery would
likely lead to moderately higher levels of short-term interest rates, which
could potentially materialize during the second half of 2002. In our view, the
fund is well positioned to take advantage of the money market yield levels that
become available during the months ahead.

ANNUAL HOUSEHOLDING NOTICE

To reduce fund expenses, the fund attempts to eliminate duplicate mailings to
the same address. The fund delivers a single copy of certain shareholder
documents to investors who share an address, even if the accounts are registered
under different names. The fund's prospectuses and shareholder reports will be
delivered to you in this manner indefinitely unless you instruct us otherwise.
You can request multiple copies of these documents by either calling (800)
341-2911 or writing to Van Kampen Investor Services at 1 Parkview Plaza, P.O.
Box 35555, Oakbrook Terrace, IL 60181. Once Investor Services has received your
instructions, we will begin sending individual copies for each account within 30
days.

An investment in a money market fund is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although money
market funds seek to preserve the value of your investment at $1.00 per share,
it is possible to lose money by investing in the fund.

6
<PAGE>

BY THE NUMBERS

YOUR FUND'S INVESTMENTS

May 31, 2002
THE FOLLOWING PAGES DETAIL YOUR FUND'S PORTFOLIO OF INVESTMENTS AT THE END OF
THE REPORTING PERIOD.

<Table>
<Caption>
DISCOUNT
PAR YIELD ON
AMOUNT MATURITY DATE OF AMORTIZED
(000) DESCRIPTION DATE PURCHASE COST
<C> <S> <C> <C> <C>
COMMERCIAL PAPER 55.9%
$25,000 Abbey National North America............. 07/29/02 1.885% $ 24,924,681
20,000 AIG Funding, Inc......................... 07/15/02 1.953 19,952,578
20,000 American Express Credit.................. 06/07/02 1.762 19,994,133
10,000 American General Finance Corp............ 06/06/02 1.762 9,997,556
10,000 American Honda Finance................... 06/11/02 1.774 9,995,083
15,000 Barclays US Funding Corp................. 08/30/02 1.808 14,932,500
20,000 BP Amoco Capital PLC..................... 07/09/02 1.865 19,960,944
15,000 CBA Finance, Inc......................... 06/13/02 1.889 14,990,600
20,000 Ciesco, LP............................... 06/03/02 1.785 19,998,022
15,000 Citicorp................................. 06/10/02 1.762 14,993,400
18,000 Citicorp................................. 06/27/02 1.807 17,976,600
20,000 Deutsche Bank Financial, Inc............. 07/24/02 1.808 19,947,000
15,000 Fcar Owner Trust II...................... 06/17/02 1.857 14,987,667
20,000 Fcar Owner Trust II...................... 06/24/02 1.796 19,977,128
15,000 General Electric Capital Corp............ 07/19/02 1.839 14,963,400
10,000 General Electric Capital Corp............ 12/31/02 2.172 9,873,383
15,000 Halifax PLC.............................. 07/02/02 1.879 14,975,846
15,000 ING (US) Funding LLC..................... 08/23/02 1.862 14,936,021
15,000 JP Morgan Chase & Co..................... 06/19/02 1.783 14,986,650
15,000 Lloyds TSB Bank PLC...................... 07/12/02 1.943 14,967,029
25,000 Mortgage Interest Networking............. 06/18/02 1.812 24,978,632
10,000 Mortgage Interest Networking............. 07/26/02 1.806 9,972,500
20,000 New Center Asset Trust................... 07/09/02 1.930 19,959,467
15,000 New Center Asset Trust................... 10/21/02 1.915 14,887,583
15,000 Schering Corp............................ 06/27/02 1.807 14,980,500
15,000 UBS Finance, LLC......................... 08/13/02 1.912 14,942,208
10,000 Wells Fargo Financial, Inc............... 06/17/02 1.909 9,991,556
15,000 Wells Fargo Financial, Inc............... 08/29/02 1.808 14,933,250
------------
TOTAL COMMERCIAL PAPER........................................... 451,975,917
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS 18.5%
15,000 Federal Home Loan Bank Discount Note..... 08/02/02 1.768 14,954,533
20,000 Federal Home Loan Mortgage Association
Discount Note............................ 07/17/02 1.829 19,953,489
20,000 Federal Home Loan Mortgage Association
Discount Note............................ 07/18/02 1.845 19,952,217
</Table>

See Notes to Financial Statements

7
<PAGE>

YOUR FUND'S INVESTMENTS

May 31, 2002

<Table>
<Caption>
DISCOUNT
PAR YIELD ON
AMOUNT MATURITY DATE OF AMORTIZED
(000) DESCRIPTION DATE PURCHASE COST
<C> <S> <C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS (CONTINUED)
$15,000 Federal Home Loan Mortgage Association
Discount Note............................ 08/08/02 1.773% $ 14,949,992
20,000 Federal Home Loan Mortgage Association
Discount Note............................ 12/13/02 2.095 19,776,833
15,000 Federal National Mortgage Association
Discount Note............................ 07/03/02 1.818 14,975,867
15,000 Federal National Mortgage Association
Discount Note............................ 07/08/02 1.860 14,971,556
15,000 Federal National Mortgage Association
Discount Note............................ 11/06/02 1.907 14,875,575
15,000 Federal National Mortgage Association
Discount Note............................ 10/04/02 2.145 14,889,583
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS 18.5%.................. 149,299,645
------------
CERTIFICATES OF DEPOSIT 12.4%
15,000 Deutsche Bank AG......................... 07/23/02 1.790 15,000,000
17,000 Mellon Bank North America................ 06/05/02 1.780 17,000,000
18,000 Mellon Bank North America................ 06/21/02 1.850 18,000,000
20,000 State Street Bank & Trust................ 06/26/02 1.780 20,000,000
15,000 State Street Bank & Trust................ 07/31/02 1.790 15,000,000
15,000 Toronto Dominion Holding................. 07/12/02 1.860 15,000,000
------------
TOTAL CERTIFICATES OF DEPOSIT.................................... 100,000,000
------------
NOTES 5.8%
10,000 Bank America North America Charlotte..... 09/05/02 1.820 10,000,000
37,000 LaSalle National Bank.................... 06/20/02 1.830 37,000,000
------------
TOTAL NOTES...................................................... 47,000,000
------------
REPURCHASE AGREEMENT 7.4%
BankAmerica Securities ($59,600,000 par collateralized by U.S.
Government obligations in a pooled cash account, dated
05/31/02, to be sold on 06/03/02 at $59,608,940)............... 59,600,000
------------
TOTAL INVESTMENTS 100.0% (a)............................................... 807,875,562
LIABILITIES IN EXCESS OF OTHER ASSETS (0.0%)............................... (111,689)
------------

NET ASSETS 100.0%.......................................................... $807,763,873
============
</Table>

(a) At May 31, 2002, cost is identical for both book and federal income taxes.

See Notes to Financial Statements

8
<PAGE>

FINANCIAL STATEMENTS
Statement of Assets and Liabilities
May 31, 2002

<Table>
<S> <C>
ASSETS:
Total Investments, at amortized cost which approximates
market value.............................................. $807,875,562
Cash........................................................ 71,792
Receivables:
Fund Shares Sold.......................................... 3,418,924
Interest.................................................. 472,352
Other....................................................... 151,300
------------
Total Assets............................................ 811,989,930
------------
LIABILITIES:
Payables:
Fund Shares Repurchased................................... 2,850,714
Distributor and Affiliates................................ 653,591
Investment Advisory Fee................................... 270,361
Income Distributions...................................... 29,161
Accrued Expenses............................................ 230,917
Trustees' Deferred Compensation and Retirement Plans........ 191,313
------------
Total Liabilities....................................... 4,226,057
------------
NET ASSETS.................................................. $807,763,873
============
NET ASSETS CONSIST OF:
Capital (Par value of $.01 per share with an unlimited
number of shares authorized).............................. $807,788,995
Accumulated Undistributed Net Investment Income............. 2,513
Accumulated Net Realized Loss............................... (27,635)
------------
NET ASSETS.................................................. $807,763,873
============
MAXIMUM OFFERING PRICE PER SHARE:
Class A Shares:
Net asset value, offering price and redemption price per
share (Based on net assets of $458,022,209 and
458,061,356 shares of beneficial interest issued and
outstanding)............................................ $ 1.00
============
Class B Shares:
Net asset value and offering price per share (Based on
net assets of $299,075,662 and 299,079,493 shares of
beneficial interest issued and outstanding)............. $ 1.00
============
Class C Shares:
Net asset value and offering price per share (Based on
net assets of $50,666,002 and 50,689,804 shares of
beneficial interest issued and outstanding)............. $ 1.00
============
</Table>

See Notes to Financial Statements

9
<PAGE>

Statement of Operations
For the Year Ended May 31, 2002

<Table>
<S> <C>
INVESTMENT INCOME:
Interest.................................................... $25,793,185
-----------
EXPENSES:
Distribution (12b-1) and Service Fees (Attributed to Classes
A, B and C of $704,090, $3,265,027 and $479,678,
respectively)............................................. 4,448,795
Investment Advisory Fee..................................... 3,546,711
Shareholder Services........................................ 2,727,713
Custody..................................................... 132,262
Legal....................................................... 36,288
Trustees' Fees and Related Expenses......................... 29,432
Other....................................................... 499,308
-----------
Total Expenses.......................................... 11,420,509
Less Credits Earned on Cash Balances.................... 36,478
-----------
Net Expenses............................................ 11,384,031
-----------
NET INVESTMENT INCOME....................................... $14,409,154
===========
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $14,409,154
===========
</Table>

See Notes to Financial Statements

10
<PAGE>

Statements of Changes in Net Assets

<Table>
<Caption>
YEAR ENDED YEAR ENDED
MAY 31, 2002 MAY 31, 2001
----------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income............................. $ 14,409,154 $ 37,999,919
--------------- ---------------

Distributions from Net Investment Income:
Class A Shares.................................. (9,391,875) (24,360,250)
Class B Shares.................................. (4,252,158) (11,451,242)
Class C Shares.................................. (748,354) (2,205,189)
--------------- ---------------
Total Distributions............................... (14,392,387) (38,016,681)
--------------- ---------------

NET CHANGE IN NET ASSETS FROM INVESTMENT
ACTIVITIES...................................... 16,767 (16,762)
--------------- ---------------

FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold......................... 1,896,126,309 2,505,005,403
Net Asset Value of Shares Issued Through Dividend
Reinvestment.................................... 14,392,387 38,016,681
Cost of Shares Repurchased........................ (1,956,211,417) (2,556,368,681)
--------------- ---------------
NET CHANGE IN NET ASSETS FROM CAPITAL
TRANSACTIONS.................................... (45,692,721) (13,346,597)
--------------- ---------------
TOTAL DECREASE IN NET ASSETS...................... (45,675,954) (13,363,359)
NET ASSETS:
Beginning of the Period........................... 853,439,827 866,803,186
--------------- ---------------
End of the Period (Including accumulated
undistributed net investment income of $2,513
and ($14,254), respectively).................... $ 807,763,873 $ 853,439,827
=============== ===============
</Table>

See Notes to Financial Statements

11
<PAGE>

Financial Highlights
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE SHARE OF THE FUND
OUTSTANDING THROUGHOUT THE PERIODS INDICATED.

<Table>
<Caption>
YEAR ENDED MAY 31,
CLASS A SHARES ----------------------------------------------
2002 2001 2000 1999 1998
----------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF THE
PERIOD................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------
Net Investment Income................. .02 .05 .05 .04 .05
Less Distributions from Net Investment
Income.............................. .02 .05 .05 .04 .05
------ ------ ------ ------ ------
NET ASSET VALUE, END OF THE PERIOD...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ======

Total Return (a)........................ 1.93% 5.35%* 4.92% 4.55% 4.78%
Net Assets at End of the Period (In
millions)............................. $458.0 $451.7 $573.3 $529.6 $634.1
Ratio of Expenses to Average Net Assets
(b)................................... .91% .95% .82% .84% 1.02%
Ratio of Net Investment Income to
Average Net Assets.................... 1.94% 5.22% 4.71% 4.38% 4.60%
</Table>

* If certain losses had not been assumed by Van Kampen, total return would have
been lower by less than .01%.

(a) Assumes reinvestment of all distributions for the period and includes
combined Rule 12b-1 fees and service fees of up to .15% and does not reflect
the deduction of taxes that a shareholder would pay on Fund distributions or
the redemption of Fund shares.

(b) The Ratio of Expenses to Average Net Assets does not reflect credits earned
on cash balances. If these credits were reflected as a reduction of
expenses, the ratio would decrease by .01% for the year ended May 31, 1999.

See Notes to Financial Statements

12
<PAGE>

Financial Highlights
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE SHARE OF THE FUND
OUTSTANDING THROUGHOUT THE PERIODS INDICATED.

<Table>
<Caption>
YEAR ENDED MAY 31,
CLASS B SHARES ----------------------------------------------
2002 2001 2000 1999 1998
----------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF THE
PERIOD................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------
Net Investment Income................. .01 .05 .04 .04 .04
Less Distributions from Net Investment
Income.............................. .01 .05 .04 .04 .04
------ ------ ------ ------ ------
NET ASSET VALUE, END OF THE PERIOD...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ======

Total Return (a)........................ 1.16% 4.66%* 4.14% 3.78% 3.99%
Net Assets at End of the Period (In
millions)............................. $299.1 $338.7 $238.8 $129.8 $123.0
Ratio of Expenses to Average Net Assets
(b)................................... 1.67% 1.58% 1.57% 1.63% 1.79%
Ratio of Net Investment Income to
Average Net Assets.................... 1.17% 4.43% 3.96% 3.71% 3.91%
</Table>

* If certain losses had not been assumed by Van Kampen, total return would have
been lower by less than .01%.

(a) Assumes reinvestment of all distributions for the period and does not
include payment of the maximum contingent deferred sales charge (CDSC) of
4%, charged on certain redemptions made within the first and second year of
purchase and declining to 0% after the fifth year. If the sales charge was
included, total returns would be lower. These returns include combined Rule
12b-1 fees and service fees of up to .90% and do not reflect the deduction
of taxes that a shareholder would pay on Fund distributions or the
redemption of Fund shares.

See Notes to Financial Statements

13
<PAGE>

Financial Highlights
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE SHARE OF THE FUND
OUTSTANDING THROUGHOUT THE PERIODS INDICATED.

<Table>
<Caption>
YEAR ENDED MAY 31,
CLASS C SHARES -----------------------------------------
2002 2001 2000 1999 1998
-----------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF THE PERIOD... $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- -----
Net Investment Income.................... .01 .05 .04 .04 .04
Less Distributions from Net Investment
Income................................. .01 .05 .04 .04 .04
----- ----- ----- ----- -----
NET ASSET VALUE, END OF THE PERIOD......... $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== =====

Total Return (a)........................... 1.23% 4.57%* 4.14% 3.77% 3.99%
Net Assets at End of the Period (In
millions)................................ $50.7 $63.0 $54.7 $26.9 $16.1
Ratio of Expenses to Average Net Assets
(b)...................................... 1.60% 1.69% 1.57% 1.63% 1.78%
Ratio of Net Investment Income to Average
Net Assets............................... 1.29% 4.40% 3.96% 3.73% 3.91%
</Table>

* If certain losses had not been assumed by Van Kampen, total return would have
been lower by less than .01%.

(a) Assumes reinvestment of all distributions for the period and does not
include payment of the maximum CDSC of 1%, charged on certain redemptions
made within one year of purchase. If the sales charge was included, total
returns would be lower. These returns include combined Rule 12b-1 fees and
service fees of up to .90% and do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund
shares.

See Notes to Financial Statements

14
<PAGE>

NOTES TO
FINANCIAL STATEMENTS

May 31, 2002

1. SIGNIFICANT ACCOUNTING POLICIES

Van Kampen Reserve Fund (the "Fund") is organized as a Delaware business trust.
The Fund is an open-end diversified management investment company registered
under the Investment Company Act of 1940 (the "1940 Act"), as amended. The
Fund's investment objective is to seek protection of capital and high current
income. The Fund's investment adviser seeks to achieve this objective through
investments in U.S. dollar denominated money market securities. The Fund
commenced investment operations on July 12, 1974. The distribution of the Fund's
Class B and Class C Shares commenced on April 18, 1995.

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 accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.

A. SECURITY VALUATION Investments are valued at amortized cost, which
approximates market value. Under this valuation method, a portfolio instrument
is valued at cost and any discount or premium is accreted or amortized to the
maturity of the instrument.

B. SECURITY TRANSACTIONS Security transactions are recorded on a trade date
basis. Realized gains and losses are determined on an identified cost basis.

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 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. INCOME AND EXPENSES Interest income is recorded on an accrual basis. Income
and expenses of the Fund are allocated on a pro rata basis to each class of
shares,

15
<PAGE>

NOTES TO
FINANCIAL STATEMENTS

May 31, 2002

except for distribution and service fees and transfer agency costs which are
unique to each class of shares.

D. FEDERAL INCOME TAXES It is the Fund's policy to comply with the requirements
of the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income, if any, to its shareholders.
Therefore, no provision for federal income taxes is required.

The Fund intends to utilize provisions of the federal income tax laws which
allow it to carry a realized capital loss forward for eight years following the
year of the loss and offset such losses against any future realized capital
gains. At May 31, 2002, the Fund had an accumulated capital loss carryforward
for tax purposes of $27,635, which will expire between May 31, 2004 and 2009.

E. DISTRIBUTION OF INCOME AND GAINS The Fund declares dividends daily from net
investment income and automatically reinvests such dividends daily. Shareholders
can elect to receive the cash equivalent of their daily dividends at each month
end. The Fund distributes capital gains, if any, to shareholders at least
annually.

The tax character of distributions paid during 2002 and 2001 was as follows:

<Table>
<Caption>
2002 2001
<S> <C> <C>
Distributions paid from:
Ordinary income......................................... $14,639,745 $38,139,803
</Table>

Due to the inherent differences in the recognition of income, expenses and
realized gains/losses under accounting principles generally accepted in the
United States of America and federal income tax purposes, permanent differences
between book and tax basis reporting have been identified and appropriately
reclassified on the Statement of Assets and Liabilities. Permanent book and tax
differences of $30,479 relating to the capital loss carryforward expiring in the
current year was reclassified from accumulated net realized loss to capital.

As of May 31, 2002, the components of distributable earnings on a tax basis
were as follows:

<Table>
<S> <C>
Undistributed ordinary income............................... $214,129
</Table>

F. EXPENSE REDUCTIONS During the year ended May 31, 2002, the Fund's custody fee
was reduced by $36,478 as a result of credits earned on cash balances.

16
<PAGE>

NOTES TO
FINANCIAL STATEMENTS

May 31, 2002

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 as follows:

<Table>
<Caption>
AVERAGE DAILY NET ASSETS % PER ANNUM
<S> <C>
First $150 million.......................................... .50%
Next $100 million........................................... .45%
Next $100 million........................................... .40%
Over $350 million........................................... .35%
</Table>

For the year ended May 31, 2002, the Fund recognized expenses of
approximately $36,300 representing legal services provided by Skadden, Arps,
Slate, Meagher & Flom (Illinois), counsel to the Fund, of which a trustee of the
Fund is an affiliated person.

Under an Accounting Services agreement, the Adviser provides accounting
services to the Fund. The Adviser allocates the cost of such services to each
fund. For the year ended May 31, 2002, the Fund recognized expenses of
approximately $62,500 representing Van Kampen Investments Inc. or its
affiliates' (collectively "Van Kampen") cost of providing accounting services to
the Fund, which are reported as part of "Other" expenses in the Statement of
Operations.

Van Kampen Investor Services Inc., an affiliate of the Adviser, serves as
the shareholder servicing agent for the Fund. For the year ended May 31, 2002,
the Fund recognized expenses of approximately $2,121,500. 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.

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.
Amounts deferred are retained by the Fund and, to the extent permitted by the
1940 Act, as amended, may be invested in the common shares of those funds
selected by the trustees. Investments in such funds of approximately $109,500
are included in "Other" assets on the Statement of Assets and Liabilities at May
31, 2002. Appreciation/depreciation and distributions received from these
investments are recorded with an offsetting increase/decrease in the deferred
compensation obligation and do not affect the net asset value of the Fund.
Benefits under the

17
<PAGE>

NOTES TO
FINANCIAL STATEMENTS

May 31, 2002

retirement plan are payable upon retirement 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.

3. CAPITAL TRANSACTIONS

At May 31, 2002, capital aggregated $458,026,901, $299,074,948 and $50,687,146
for Classes A, B, and C, respectively. For the year ended May 31, 2002,
transactions were as follows:

<Table>
<Caption>
SHARES VALUE
<S> <C> <C>
Sales:
Class A.......................................... 1,374,222,816 $ 1,374,222,816
Class B.......................................... 382,872,986 382,872,986
Class C.......................................... 139,030,507 139,030,507
-------------- ---------------
Total Sales........................................ 1,896,126,309 $ 1,896,126,309
============== ===============
Dividend Reinvestment:
Class A.......................................... 9,391,875 $ 9,391,875
Class B.......................................... 4,252,158 4,252,158
Class C.......................................... 748,354 748,354
-------------- ---------------
Total Dividend Reinvestment........................ 14,392,387 $ 14,392,387
============== ===============
Repurchases:
Class A.......................................... (1,377,327,816) $(1,377,327,816)
Class B.......................................... (426,739,268) (426,739,268)
Class C.......................................... (152,144,333) (152,144,333)
-------------- ---------------
Total Repurchases.................................. (1,956,211,417) $(1,956,211,417)
============== ===============
</Table>

18
<PAGE>

NOTES TO
FINANCIAL STATEMENTS

May 31, 2002

At May 31, 2001, capital aggregated $451,757,308, $338,700,357, and
$63,054,530 for Classes A, B, and C, respectively. For the year ended May 31,
2001, transactions were as follows:

<Table>
<Caption>
SHARES VALUE
<S> <C> <C>
Sales:
Class A.......................................... 1,646,318,049 $ 1,646,318,049
Class B.......................................... 687,547,727 687,547,727
Class C.......................................... 171,139,627 171,139,627
-------------- ---------------
Total Sales........................................ 2,505,005,403 $ 2,505,005,403
============== ===============
Dividend Reinvestment:
Class A.......................................... 24,360,250 $ 24,360,250
Class B.......................................... 11,451,242 11,451,242
Class C.......................................... 2,205,189 2,205,189
-------------- ---------------
Total Dividend Reinvestment........................ 38,016,681 $ 38,016,681
============== ===============
Repurchases:
Class A.......................................... (1,792,234,974) $(1,792,234,973)
Class B.......................................... (599,148,102) (599,148,112)
Class C.......................................... (164,985,596) (164,985,596)
-------------- ---------------
Total Repurchases.................................. (2,556,368,672) $(2,556,368,681)
============== ===============
</Table>

Class B Shares purchased on or after June 1, 1996, and any dividend
reinvestment plan Class B Shares received on such shares, automatically convert
to Class A Shares eight years after the end of the calendar month in which the
shares were purchased. Class B Shares purchased before June 1, 1996, and any
dividend reinvestment plan Class B Shares received on such shares, automatically
convert to Class A Shares six years after the end of the calendar month in which
the shares were purchased. For the years ended May 31, 2002 and 2001, 18,883,624
and 12,687,998 Class B Shares automatically converted to Class A Shares,
respectively, and are shown in the above table as sales of Class A Shares and
repurchases of Class B Shares. Class C Shares purchased before January 1, 1997,
and any dividend reinvestment plan Class C Shares received on such shares,
automatically convert to Class A Shares ten years after the end of the calendar
month in which such shares were purchased. Class C Shares purchased on or after
January 1, 1997 do not possess a conversion feature. For the years ended May 31,
2002 and 2001, no Class C Shares converted to Class A Shares. Class B and C
Shares are offered without a front end sales charge, but are subject to a
contingent deferred sales charge (CDSC). The CDSC will be imposed on most
redemptions made within five

19
<PAGE>

NOTES TO
FINANCIAL STATEMENTS

May 31, 2002

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
AS A PERCENTAGE
OF DOLLAR AMOUNT
SUBJECT TO 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>

For the year ended May 31, 2002, Van Kampen, as Distributor for the Fund,
received net commissions on redeemed shares which were subject to a CDSC of
approximately $2,656,700. Sales charges do not represent expenses to the Fund.

4. DISTRIBUTION AND SERVICE PLANS

With respect to its Class A Shares, Class B Shares and Class C Shares, the Fund
and its shareholders have adopted a distribution plan pursuant to Rule 12b-1
under the 1940 Act, as amended, and a service plan (collectively, the "Plans").
The Plans govern payments for: the distribution of the Fund's Class A Shares,
Class B Shares and Class C Shares; the provision of ongoing shareholder services
with respect to such classes of shares; and the maintenance of shareholder
accounts with respect to such classes of shares.

Annual fees under the Plans of up to .15% of Class A average daily net
assets and .90% each of Class B and Class C average daily net assets are accrued
daily. Included in these fees for the year ended May 31, 2002, are payments
retained by Van Kampen of approximately $2,962,900 and payments made to Morgan
Stanley DW Inc., an affiliate of the Adviser, of approximately $121,500.

20
<PAGE>

REPORT OF INDEPENDENT AUDITORS

To the Shareholders and Board of Trustees of Van Kampen Reserve Fund:

We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Van Kampen Reserve Fund (the "Fund"), as of May
31, 2002, and the related statement of operations for the year then ended, the
statement of changes in net assets for each of the two years in the period then
ended, and the financial highlights for each of the three years in the period
then ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits. The financial highlights of the Fund for each of the two years in the
period ended May 31, 1999 were audited by other auditors whose report dated July
1, 1999 expressed an unqualified opinion on those financial highlights.

We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
and financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of May 31, 2002, by correspondence with the
custodian. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of the
Fund at May 31, 2002, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then ended,
and the financial highlights for each of the three years in the period then
ended, in conformity with accounting principles generally accepted in the United
States.

/s/ Ernst & Young LLP
Chicago, Illinois
July 11, 2002

21
<PAGE>

VAN KAMPEN INVESTMENTS

THE VAN KAMPEN
FAMILY OF FUNDS

Growth

Aggressive Growth
American Value
Emerging Growth
Enterprise
Equity Growth
Focus Equity
Growth
Mid Cap Growth
Pace
Select Growth
Small Cap Growth
Small Cap Value
Tax Managed Equity Growth
Technology

Growth and Income

Comstock
Equity and Income
Growth and Income
Harbor
Real Estate Securities
Utility
Value
Value Opportunities

Global/International

Asian Equity
Emerging Markets
European Value Equity
Global Equity Allocation
Global Franchise
Global Value Equity
International Advantage
International Magnum
Latin American
Worldwide High Income

Income

Corporate Bond
Government Securities
High Income Corporate Bond
High Yield
Limited Maturity Government
U.S. Government
U.S. Government Trust for Income*

Capital Preservation

Reserve
Tax Free Money

Senior Loan

Prime Rate Income Trust
Senior Floating Rate

Tax Free

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
Strategic Municipal Income

For more complete information, including risk considerations, fees, sales
charges and ongoing expenses, please contact your financial advisor for a
prospectus. Please read it 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
VANKAMPEN.COM--
to view a prospectus, select
Download Prospectus [COMPUTER ICON]

- call us at (800) 847-2424
Telecommunications Device
for the Deaf (TDD) users,
call (800) 421-2833.

[PHONE ICON]

- e-mail us by visiting
VANKAMPEN.COM and
selecting Contact Us

[MAIL ICON]

* Closed to new investors

** Open to new investors for a limited time

22
<PAGE>

BOARD OF TRUSTEES AND IMPORTANT ADDRESSES
VAN KAMPEN RESERVE FUND

BOARD OF TRUSTEES

J. MILES BRANAGAN
JERRY D. CHOATE
LINDA HUTTON HEAGY
R. CRAIG KENNEDY
MITCHELL M. MERIN*
JACK E. NELSON
RICHARD F. POWERS, III*
WAYNE W. WHALEN* - Chairman
SUZANNE H. WOOLSEY

INVESTMENT ADVISER

VAN KAMPEN ASSET MANAGEMENT INC.
1 Parkview Plaza
P.O. Box 5555
Oakbrook Terrace, Illinois 60181-5555

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 02110

LEGAL COUNSEL

SKADDEN, ARPS, SLATE,
MEAGHER & FLOM (ILLINOIS)
333 West Wacker Drive
Chicago, Illinois 60606

INDEPENDENT AUDITORS

ERNST & YOUNG LLP
233 South Wacker Drive
Chicago, Illinois 60606

* "Interested persons" of the Fund, as defined in the Investment Company Act
of 1940, as amended.

23
<PAGE>

TRUSTEE AND OFFICER INFORMATION

The business and affairs of the Fund are managed under the direction of the
Fund's Board of Trustees and the Fund's officers appointed by the Board of
Trustees. The tables below list the trustees and executive officers of the Fund
and their principal occupations during the last five years, other directorships
held by trustees and their affiliations, if any, with Van Kampen Investments
Inc. ("Van Kampen Investments"), Van Kampen Investment Advisory Corp. ("Advisory
Corp."), Van Kampen Asset Management Inc. ("Asset Management"), Van Kampen Funds
Inc. (the "Distributor"), Van Kampen Advisors Inc., Van Kampen Exchange Corp.
and Van Kampen Investor Services Inc. ("Investor Services"). Advisory Corp. and
Asset Management sometimes are referred to herein collectively as the
"Advisers." The term "Fund Complex" includes each of the investment companies
advised by the Advisers or their affiliates as of the date of this Statement of
Additional Information. Trustees serve until reaching their retirement age or
until their successors are duly elected and qualified. Officers are annually
elected by the trustees.

INDEPENDENT TRUSTEES:

24
<PAGE>

Jerry D. Choate (63) Trustee Trustee Trustee/Director of funds 57 Director of Amgen Inc., a
53 Monarch Bay Drive since 1999 in the Fund Complex. biotechnological company,
Dana Point, CA 92629 Prior to January 1999, and Director of Valero
Chairman and Chief Energy Corporation, an
Executive Officer of the independent refining
Allstate Corporation company.
("Allstate") and Allstate
Insurance Company. Prior
to January 1995,
President and Chief
Executive Officer of
Allstate. Prior to August
1994, various management
positions at Allstate.

Linda Hutton Heagy (54) Trustee Trustee Regional Managing Partner 57
Sears Tower since 1995 of Heidrick & Struggles,
233 South Wacker Drive an executive search firm.
Suite 7000 Trustee/ Director of
Chicago, IL 60606 funds in the Fund
Complex. Trustee on the
University of Chicago
Hospitals Board, Vice
Chair of the Board of the
YMCA of Metropolitan
Chicago and a member of
the Women's Board of the
University of Chicago.
Prior to 1997, Partner,
Ray & Berndtson, Inc., an
executive recruiting
firm. Prior to 1996,
Trustee of The
International House
Board, a fellowship and
housing organization for
international graduate
students. Formerly,
Executive Vice President
of ABN AMRO, N.A., a
Dutch bank holding
company. Prior to 1992,
Executive Vice President
of La Salle National
Bank.
</Table>

25
<PAGE>

R. Craig Kennedy (50) Trustee Trustee Director and President, 57
1744 R Street, since 1995 German Marshall Fund of
Washington, D.C. 20009 the United States, an
independent U.S.
foundation created to
deepen understanding,
promote collaboration and
stimulate exchanges of
practical experience
between Americans and
Europeans.
Trustee/Director of funds
in the Fund Complex.
Formerly, advisor to the
Dennis Trading Group
Inc., a managed futures
and option company that
invests money for
individuals and
institutions. Prior to
1992, President and Chief
Executive Officer,
Director and member of
the Investment Committee
of the Joyce Foundation,
a private foundation.

Jack E. Nelson (66) Trustee Trustee President, Nelson 57
423 Country Club Drive since 1995 Investment Planning
Winter Park, FL 32789 Services, Inc., a
financial planning
company and registered
investment adviser in the
State of Florida.
President, Nelson Ivest
Brokerage Services Inc.,
a member of the National
Association of Securities
Dealers, Inc. and
Securities Investors
Protection Corp. Trustee/
Director of funds in the
Fund Complex.
</Table>

26
<PAGE>

Suzanne H. Woolsey (60) Trustee Trustee Chief Communications 57 Director of Neurogen
2101 Constitution Ave., N.W. since 1999 Officer of the National Corporation, a
Room 285 Academy of pharmaceutical company,
Washington, D.C. 20418 Sciences/National since January 1998.
Research Council, an
independent, federally
chartered policy
institution, since 2001
and previously Chief
Operating Officer from
1993-2001.
Trustee/Director of funds
in the Fund Complex.
Director of the Institute
for Defense Analyses, a
federally funded research
and development center,
Director of the German
Marshall Fund of the
United States, Trustee of
Colorado College and Vice
Chair of the Board of the
Council for Excellence in
Government. Prior to
1993, Executive Director
of the Commission on
Behavioral and Social
Sciences and Education at
the National Academy of
Sciences/National
Research Council. From
1980 through 1989,
Partner of Coopers &
Lybrand.
</Table>

27
<PAGE>

INTERESTED TRUSTEES:*

<Table>
<Caption>
NUMBER OF
TERM OF FUNDS IN
OFFICE AND FUND
POSITION(S) LENGTH OF COMPLEX
NAME, AGE AND ADDRESS HELD WITH TIME PRINCIPAL OCCUPATION(S) OVERSEEN OTHER DIRECTORSHIPS
OF INTERESTED TRUSTEE FUND SERVED DURING PAST 5 YEARS BY TRUSTEE HELD BY TRUSTEE
<S> <C> <C> <C> <C> <C>
Mitchell M. Merin* (48) Trustee Trustee President and Chief 57
1221 Avenue of the Americas since 1999 Operating Officer of
21st Floor Morgan Stanley Investment
New York, NY 10020 Management since December
1998. President and
Director since April 1997
and Chief Executive
Officer since June 1998
of Morgan Stanley
Investment Advisors Inc.
and Morgan Stanley
Services Company Inc.
Chairman, Chief Executive
Officer and Director of
Morgan Stanley
Distributors Inc. since
June 1998. Chairman and
Chief Executive Officer
since June 1998, and
Director since January
1998 of Morgan Stanley
Trust. Director of
various Morgan Stanley
subsidiaries. President
of the Morgan Stanley
Funds since May 1999.
Trustee/Director of funds
in the Fund Complex.
Previously Chief
Strategic Officer of
Morgan Stanley Investment
Advisors Inc. and Morgan
Stanley Services Company
Inc. and Executive Vice
President of Morgan
Stanley Distributors Inc.
April 1997-June 1998,
Vice President of the
Morgan Stanley Funds May
1997-April 1999, and
Executive Vice President
of Dean Witter, Discover
& Co. prior to May 1997.
</Table>

28
<PAGE>

Richard F. Powers, III* (56) Trustee and Trustee Chairman, President, 94
1 Parkview Plaza President since 1999 Chief Executive Officer,
P.O. Box 5555 Director and Managing
Oakbrook Terrace, IL 60181 Director of Van Kampen
Investments. Chairman,
Director and Chief
Executive Officer of the
Advisers, the Distributor
and Van Kampen Advisors
Inc. since 1998. Managing
Director of the Advisers,
the Distributor and Van
Kampen Advisors Inc.
since July 2001. Director
and Officer of certain
other subsidiaries of Van
Kampen Investments. Chief
Sales and Marketing
Officer of Morgan Stanley
Asset Management Inc.
Trustee/Director and
President or Trustee,
President and Chairman of
the Board of funds in the
Fund Complex. Prior to
May 1998, Executive Vice
President and Director of
Marketing at Morgan
Stanley and Director of
Dean Witter, Discover &
Co. and Dean Witter
Realty. Prior to 1996,
Director of Dean Witter
Reynolds Inc.

Wayne W. Whalen* (62) Trustee Trustee Partner in the law firm 94
333 West Wacker Drive since 1995 of Skadden, Arps, Slate,
Chicago, IL 60606 Meagher & Flom
(Illinois), legal counsel
to funds in the Fund
Complex. Trustee/
Director/Managing General
Partner of funds in the
Fund Complex.
</Table>

* Such trustee is an "interested person" (within the meaning of Section 2(a)(19)
of the 1940 Act). Mr. Whalen is an interested person of certain funds in the
Fund Complex by reason of his firm currently acting as legal counsel to such
funds in the Fund Complex. Messrs. Merin and Powers are interested persons of
funds in the Fund Complex and the Advisers by reason of their positions with
Morgan Stanley or its affiliates.

29
<PAGE>

OFFICERS:

<Table>
<Caption>
TERM OF
OFFICE AND
POSITION(S) LENGTH OF
NAME, AGE AND HELD WITH TIME PRINCIPAL OCCUPATION(S)
ADDRESS OF OFFICER FUND SERVED DURING PAST 5 YEARS
<S> <C> <C> <C>
Stephen L. Boyd (61) Vice President Officer Managing Director and Chief Investment Officer of Van Kampen
2800 Post Oak Blvd. since 1998 Investments, and Managing Director and President of the
45th Floor Advisers and Van Kampen Advisors Inc. Executive Vice
Houston, TX 77056 President and Chief Investment Officer of funds in the Fund
Complex. Prior to December 2000, Executive Vice President
and Chief Investment Officer of Van Kampen Investments, and
President and Chief Operating Officer of the Advisers. Prior
to April 2000, Executive Vice President and Chief Investment
Officer for Equity Investments of the Advisers. Prior to
October 1998, Vice President and Senior Portfolio Manager
with AIM Capital Management, Inc. Prior to February 1998,
Senior Vice President and Portfolio Manager of Van Kampen
American Capital Asset Management, Inc., Van Kampen American
Capital Investment Advisory Corp. and Van Kampen American
Capital Management, Inc.
Joseph J. McAlinden (59) Chief Investment Officer Managing Director and Chief Investment Officer of Morgan
1221 Avenue of the Americas Officer since Stanley Investment Advisors Inc. and Director of Morgan
New York, NY 10020 2002 Stanley Trust for over 5 years.
</Table>

30
<PAGE>

<Table>
<Caption>
TERM OF
OFFICE AND
POSITION(S) LENGTH OF
NAME, AGE AND HELD WITH TIME PRINCIPAL OCCUPATION(S)
ADDRESS OF OFFICER FUND SERVED DURING PAST 5 YEARS
<S> <C> <C> <C>

A. Thomas Smith III (45) Vice President and Officer Managing Director and Director of Van Kampen Investments,
1221 Avenue of the Americas Secretary since 1999 Director of the Advisers, Van Kampen Advisors Inc., the
22nd Floor Distributor, Investor Services and certain other
New York, NY 10020 subsidiaries of Van Kampen Investments. Managing Director
and General Counsel-Mutual Funds of Morgan Stanley
Investment Advisors, Inc. Vice President or Principal Legal
Officer and Secretary of funds in the Fund Complex. Prior to
July 2001, Managing Director, General Counsel, Secretary and
Director of Van Kampen Investments, the Advisers, the
Distributor, Investor Services, and certain other
subsidiaries of Van Kampen Investments. Prior to December
2000, Executive Vice President, General Counsel, Secretary
and Director of Van Kampen Investments, the Advisers, Van
Kampen Advisors Inc., the Distributor, Investor Services and
certain other subsidiaries of Van Kampen Investments. Prior
to January 1999, Vice President and Associate General
Counsel to New York Life Insurance Company ("New York
Life"), and prior to March 1997, Associate General Counsel
of New York Life. Prior to December 1993, Assistant General
Counsel of The Dreyfus Corporation. Prior to August 1991,
Senior Associate, Willkie Farr & Gallagher. Prior to January
1989, Staff Attorney at the Securities and Exchange
Commission, Division of Investment Management, Office of
Chief Counsel.

John R. Reynoldson (49) Vice President Officer Executive Director of the Advisers and Van Kampen Advisors
1 Parkview Plaza since 2000 Inc. Vice President of funds in the Fund Complex. Prior to
Oakbrook Terrace, IL 60181 July 2001, Principal and Co-head of the Fixed Income
Department of the Advisers and Van Kampen Advisors Inc.
Prior to December 2000, Senior Vice President of the
Advisers and Van Kampen Advisors Inc. Prior to May 2000, he
managed the investment grade taxable group for the Advisers
since July 1999. From July 1988 to June 1999, he managed the
government securities bond group for Asset Management. Mr.
Reynoldson has been with Asset Management since April 1987.
</Table>

31
<PAGE>

<Table>
<Caption>
TERM OF
OFFICE AND
POSITION(S) LENGTH OF
NAME, AGE AND HELD WITH TIME PRINCIPAL OCCUPATION(S)
ADDRESS OF OFFICER FUND SERVED DURING PAST 5 YEARS
<S> <C> <C> <C>

John L. Sullivan (46) Vice President, Chief Officer Executive Director of Van Kampen Investments, the Advisers
1 Parkview Plaza Financial Officer and since 1996 and Van Kampen Advisors Inc. Vice President, Chief Financial
Oakbrook Terrace, IL 60181 Treasurer Officer and Treasurer of funds in the Fund Complex.

John H. Zimmermann, III (44) Vice President Officer Managing Director and Director of Van Kampen Investments,
Harborside Financial Center since 2000 and Managing Director, President and Director of the
Plaza 2 - 7th Floor Distributor. Vice President of funds in the Fund Complex.
Jersey City, NJ 07311 Prior to December 2000, President of Van Kampen Insurance
Agency of Illinois Inc., and Senior Vice President and
Director of Van Kampen Investments. From November 1992 to
December 1997, Mr. Zimmermann was Senior Vice President of
the Distributor.
</Table>

32
<PAGE>

Van Kampen
Privacy Notice

The Van Kampen companies and investment products* respect your right to privacy.
We also know that you expect us to conduct and process your business in an
accurate and efficient manner. To do so, we must collect and maintain certain
nonpublic personal information about you. This is information we collect from
you on applications or other forms, and from the transactions you make with us,
our affiliates, or third parties. We may also collect information you provide
when using our web site, and text files (a.k.a. "cookies") may be placed on your
computer to help us to recognize you and to facilitate transactions you
initiate. We do not disclose any nonpublic personal information about you or any
of our former customers to anyone, except as permitted by law. For instance, so
that we may continue to offer you Van Kampen investment products and services
that meet your investing needs, and to effect transactions that you request or
authorize, we may disclose the information we collect to companies that perform
services on our behalf, such as printers and mailers that assist us in the
distribution of investor materials. These companies will use this information
only for the services for which we hired them, and are not permitted to use or
share this information for any other purpose. To protect your nonpublic personal
information internally, we permit access to it only by authorized employees, and
maintain physical, electronic and procedural safeguards to guard your nonpublic
personal information.

* Includes Van Kampen Investments Inc., Van Kampen Investment Advisory Corp.,
Van Kampen Asset Management Inc., Van Kampen Advisors Inc., Van Kampen
Management Inc., Van Kampen Funds Inc., Van Kampen Investor Services Inc., Van
Kampen Trust Company, Van Kampen System Inc. and Van Kampen Exchange Corp., as
well as the many Van Kampen mutual funds and Van Kampen unit investment
trusts.

The Statement of Additional Information includes additional information about
Fund trustees and is available, without charge, upon request by calling (800)
847-2424.

Van Kampen Funds Inc.
1 Parkview Plaza, P.O. Box 5555
Oakbrook Terrace, IL 60181-5555
www.vankampen.com

</TEXT>
</DOCUMENT>