-----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, LLEt0J7YEHGHq1/o2Hi9E9J/kGaC85Gad39q/hD6xFOH6oiRCdbrxOAcFNEggLgs Ihg3FGyj60gNKOF2s/qJZQ== 0000950137-06-005103.txt : 20060428 0000950137-06-005103.hdr.sgml : 20060428 20060428111542 ACCESSION NUMBER: 0000950137-06-005103 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20060228 FILED AS OF DATE: 20060428 DATE AS OF CHANGE: 20060428 EFFECTIVENESS DATE: 20060428 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VAN KAMPEN HIGH YIELD FUND CENTRAL INDEX KEY: 0000276242 IRS NUMBER: 741993121 STATE OF INCORPORATION: DE FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-02851 FILM NUMBER: 06787825 BUSINESS ADDRESS: STREET 1: VAN KAMPEN INVESTMENTS INC. STREET 2: 1221 AVENUE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10020 BUSINESS PHONE: 2127625441 MAIL ADDRESS: STREET 1: VAN KAMPEN INVESTMENTS INC. STREET 2: 1221 AVENUE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10020 FORMER COMPANY: FORMER CONFORMED NAME: VAN KAMPEN AMERICAN CAPITAL HIGH INCOME TRUST DATE OF NAME CHANGE: 19970909 FORMER COMPANY: FORMER CONFORMED NAME: VAN KAMPEN AMERICAN CAPITAL HIGH INCOME CORPORATE BOND FUND DATE OF NAME CHANGE: 19951219 FORMER COMPANY: FORMER CONFORMED NAME: VAN KAMPEN HIGH INCOME CORPORATE BOND FUND DATE OF NAME CHANGE: 19920703 0000276242 S000002331 VAN KAMPEN HIGH YIELD FUND C000006106 Class A Shares ACHYX C000006107 Class B Shares ACHZX C000006108 Class C Shares ACHWX C000006109 Class I Shares ACHVX N-CSRS 1 c03207nvcsrs.txt FORM N-CSR SEMI-ANNUAL REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSRS CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-02851 Van Kampen High Yield Fund - ------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) 1221 Avenue of the Americas, New York, New York 10020 - ------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Ronald Robison 1221 Avenue of the Americas, New York, New York 10020 - ------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 212-762-4000 Date of fiscal year end: 8/31 Date of reporting period: 2/28/06 Item 1. Reports to Shareholders. The Fund's semiannual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 is as follows: Welcome, Shareholder In this report, you'll learn about how your investment in Van Kampen High Yield Fund performed during the semiannual period. The portfolio management team will provide an overview of the market conditions and discuss some of the factors that affected investment performance during the reporting period. In addition, this report includes the fund's financial statements and a list of fund investments as of February 28, 2006. THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY A PROSPECTUS FOR THE FUND BEING OFFERED. MARKET FORECASTS PROVIDED IN THIS REPORT MAY NOT NECESSARILY COME TO PASS. THERE IS NO ASSURANCE THAT THE FUND WILL ACHIEVE ITS INVESTMENT OBJECTIVE. THE FUND IS SUBJECT TO MARKET RISK, WHICH IS THE POSSIBILITY THAT THE MARKET VALUES OF SECURITIES OWNED BY THE FUND WILL DECLINE AND, THEREFORE, THE VALUE OF THE FUND SHARES MAY BE LESS THAN WHAT YOU PAID FOR THEM. ACCORDINGLY, YOU CAN LOSE MONEY INVESTING IN THIS FUND. PLEASE SEE THE PROSPECTUS FOR MORE COMPLETE INFORMATION ON INVESTMENT RISKS.
--------------------------------------------------------------------------------------- NOT FDIC INSURED OFFER NO BANK GUARANTEE MAY LOSE VALUE --------------------------------------------------------------------------------------- NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY NOT A DEPOSIT ---------------------------------------------------------------------------------------
Performance Summary as of 2/28/06
A SHARES B SHARES C SHARES I SHARES since 10/2/78 since 7/2/92 since 7/6/93 since 3/23/05 - ------------------------------------------------------------------------------------------------- W/MAX W/MAX W/MAX W/O 4.75% W/O 4.00% W/O 1.00% W/O AVERAGE ANNUAL SALES SALES SALES SALES SALES SALES SALES TOTAL RETURNS CHARGES CHARGES CHARGES CHARGES CHARGES CHARGES CHARGES Since Inception 7.37% 7.18% 5.36% 5.36% 4.21% 4.21% 4.24% 10-year 3.98 3.46 3.49 3.49 3.20 3.20 N/A 5-year 3.13 2.13 2.38 2.17 2.42 2.42 N/A 1-year 1.64 -3.26 1.13 -2.66 1.19 0.24 N/A 6-month 1.36 -3.42 0.97 -2.93 1.29 0.31 1.50 - ------------------------------------------------------------------------------------------------- 30-Day SEC Yield 6.16% 5.67% 5.76% 6.73%
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE FIGURES SHOWN. FOR MORE UP-TO-DATE INFORMATION, INCLUDING MONTH-END PERFORMANCE FIGURES, PLEASE VISIT VANKAMPEN.COM OR SPEAK WITH YOUR FINANCIAL ADVISOR. INVESTMENT RETURNS AND PRINCIPAL VALUE WILL FLUCTUATE AND FUND SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. The returns shown in this report do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Performance of share classes will vary due to differences in sales charges and expenses. As a result of recent market activity, current performance may vary from the figures shown. Average annual total return with sales charges includes payment of the maximum sales charge of 4.75 percent for Class A shares, a contingent deferred sales charge of 4.00 percent for Class B shares (in years one and two and declining to zero after year five), a contingent deferred sales charge of 1.00 percent for Class C shares in year one and combined Rule 12b-1 fees and service fees of up to 0.25 percent for Class A shares and up to 1.00 percent for Class B and C shares. The since inception and ten-year returns for Class B shares reflect the conversion of Class B shares into Class A shares six years after purchase. The since inception returns for Class C shares reflect the conversion of Class C shares into Class A shares ten years after purchase. Figures shown above assume reinvestment of all dividends and capital gains. Class I shares are available for purchase exclusively by investors through (i) tax-exempt retirement plans with assets of at least $1 million (including 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase plans, defined benefit plans and non-qualified deferred compensation plans), (ii) fee-based investment programs with assets of at least $1 million and (iii) institutional clients with assets of at least $1 million. Class I shares are offered without any sales charges on purchases or sales and do not include combined 12b-1 fees and service fees. Figures shown above assume reinvestment of all dividends and capital gains. SEC yield is a calculation for determining the amount of portfolio income, excluding non-income items as prescribed by the SEC. Yields are subject to change. JP Morgan Global High Yield Index is a broad-based index that reflects the general performance of the global high-yield corporate debt market. Lipper High Yield Bond Fund Index is an index of funds with similar return objectives as this fund. Indexes do not include any expenses, fees or sales charges, which would lower performance. Indexes are unmanaged and should not be considered an investment. Source for index performance: Lipper Inc. 1 Fund Report FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 28, 2006 MARKET CONDITIONS As the reporting period opened, investors confronted the possibility that Gulf Coast hurricane damage could result in a slowdown in economic growth and increased inflation. An unfavorable supply-demand outlook (large outflows from high yield mutual funds and a robust high yield bond issuance calendar), a high-profile default by auto parts manufacturer Delphi and an accounting scandal at Refco added to investors' concerns. Against this backdrop, the prices of high yield bonds moved lower in September and October. The market regained a degree of traction in November and December, however. Although a declining appetite for corporate credit risk and a rising federal funds target rate weighed on sentiment, good economic growth and an improved equity market provided support. Reflecting investors' heightened apprehension, single B rated bonds demonstrated the greatest resiliency and the lower-rated segment of the high yield market struggled most during the final months of 2005. The high yield market started 2006 on a very positive note. Investors were increasingly heartened by economic growth data and a briskly rising equity market. In addition, investors' rekindled interest in moving further up the risk/reward spectrum provided further support to the high yield market. This improved sentiment offset less positive factors elsewhere, including a very heavy new issue calendar, rising yields in the Treasury market, rising oil prices and outflows from mutual funds. In a reversal of the trends of the final months of 2005, the riskiest segment of the high-yield market garnered the most favor with investors, as securities rated CCC and below led. Industry returns varied across sectors, and were often influenced significantly by individual companies. Within the JP Morgan Global High Yield Index, leading sectors included telecommunications, wireless communications and services. The auto and auto-related areas of the market struggled most, as an ongoing deterioration in fundamentals exacted an extended toll. Other lagging sectors included cable and financials. 2 PERFORMANCE ANALYSIS The fund returned 1.36 percent for the six months ended February 28, 2006 (Class A shares, unadjusted for sales charges). In comparison, the fund's benchmarks, the JP Morgan Global High Yield Index and the Lipper High Yield Bond Fund Index, returned 2.16 percent and 2.49 percent for the period, respectively. TOTAL RETURN FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 28, 2006
- ---------------------------------------------------------------------------- JP MORGAN LIPPER HIGH GLOBAL YIELD HIGH YIELD BOND FUND CLASS A CLASS B CLASS C CLASS I INDEX INDEX 1.36% 0.97% 1.29% 1.50% 2.16% 2.49% - ----------------------------------------------------------------------------
The performance for the four share classes varies because each has different expenses. The fund's total return figures assume the reinvestment of all distributions, but do not reflect the deduction of any applicable sales charges. Such costs would lower performance. Past performance is no guarantee of future results. See Performance Summary for standardized performance information and index definitions. The fund's performance versus the JP Morgan Global High Yield Index benefited from its underweighting to the transportation sector, particularly the troubled auto and auto-related industries. In addition, good security selection in transportation, cable and chemicals also added to relative performance. In contrast, security selection in financials, forest products and building materials detracted from relative returns. Additionally, as investors' appetite for risk increased in 2006, the fund's more defensive emphasis on the upper tiers of the high yield market tempered performance. As of the close of the reporting period, the fund's portfolio included overweightings relative to the JP Morgan Global High Yield Index in the chemicals, energy, food/tobacco and wireless communications sectors. The fund's major sector underweights included utilities, information technology, metals, housing and financials. In regards to overall credit risk, the fund is positioned defensively versus its JP Morgan benchmark. Also reflecting a defensive bias, we reduced some of the riskier positions in the fund throughout the period. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the fund in the future. 3
RATINGS ALLOCATIONS AS OF 2/28/06 A/A 0.7% BBB/Baa 3.1 BB/Ba 31.5 B/B 57.2 CCC/Caa 6.3 Non-Rated 1.2 SUMMARY OF INVESTMENTS BY INDUSTRY CLASSIFICATION AS OF 2/28/06 Energy 9.2% Transportation 8.0 Healthcare 7.4 Utility 6.8 Gaming & Leisure 6.2 Cable 6.1 Chemicals 5.7 Forest Products 5.4 Food & Tobacco 4.4 Diversified Media 4.3 Metals 3.8 Manufacturing 3.2 Consumer Products 3.1 Services 2.9 Wireless Communications 2.9 Food & Drug 2.7 Housing 2.7 Information Technology 2.3 Telecommunications 2.2 Aerospace 1.5 Broadcasting 1.2 Retail 1.2 Financial 0.5 ----- Total Long-Term Investments 93.7% Short-Term Investments 4.7 Other Assets in Excess of Liabilities 1.6 ----- Total Net Assets 100.0%
Subject to change daily. Provided for informational purposes only and should not be deemed as a recommendation to buy or sell the securities mentioned or securities in the industries shown above. Ratings allocations are as a percentage of corporate debt obligations. Industry allocations are as a percentage of net assets. Van Kampen is a wholly owned subsidiary of a global securities firm engaged in a wide range of financial services including, for example, securities trading and brokerage activities, investment banking, research and analysis, financing and financial advisory services. Ratings allocations based upon ratings as issued by Standard and Poor's and Moody's, respectively. 4 FOR MORE INFORMATION ABOUT PORTFOLIO HOLDINGS Each Van Kampen fund provides a complete schedule of portfolio holdings in its semiannual and annual reports within 60 days of the end of the fund's second and fourth fiscal quarters by filing the schedule electronically with the Securities and Exchange Commission (SEC). The semiannual reports are filed on Form N-CSRS and the annual reports are filed on Form N-CSR. Van Kampen also delivers the semiannual and annual reports to fund shareholders, and makes these reports available on its public Web site, www.vankampen.com. In addition to the semiannual and annual reports that Van Kampen delivers to shareholders and makes available through the Van Kampen public Web site, each fund files a complete schedule of portfolio holdings with the SEC for the fund's first and third fiscal quarters on Form N-Q. Van Kampen does not deliver the reports for the first and third fiscal quarters to shareholders, nor are the reports posted to the Van Kampen public Web site. You may, however, obtain the Form N-Q filings (as well as the Form N-CSR and N-CSRS filings) by accessing the SEC's Web site, http://www.sec.gov. You may also review and copy them at the SEC's Public Reference Room in Washington, DC. Information on the operation of the SEC's Public Reference Room may be obtained by calling the SEC at (800) SEC-0330. You can also request copies of these materials, upon payment of a duplicating fee, by electronic request at the SEC's e-mail address (publicinfo@sec.gov) or by writing the Public Reference section of the SEC, Washington, DC 20549-0102. You may obtain copies of a fund's fiscal quarter filings by contacting Van Kampen Client Relations at (800) 847-2424. 5 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 (including annual privacy notices) 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 5555, Oakbrook Terrace, IL 60181. Once Investor Services has received your instructions, we will begin sending individual copies for each account within 30 days. PROXY VOTING POLICY AND PROCEDURES AND PROXY VOTING RECORD You may obtain a copy of the fund's Proxy Voting Policy and Procedures without charge, upon request, by calling toll free (800) 847-2424 or by visiting our Web site at www.vankampen.com. It is also available on the Securities and Exchange Commission's Web site at http://www.sec.gov. You may obtain information regarding how the fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 without charge by visiting our Web site at www.vankampen.com. This information is also available on the Securities and Exchange Commission's Web site at http://www.sec.gov. 6 Expense Example As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments of Class A Shares and contingent deferred sales charge on redemptions of Class B and C Shares; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing cost (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period 9/1/05 - 2/28/06. ACTUAL EXPENSE The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing cost of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or contingent deferred sales charges. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
BEGINNING ENDING EXPENSES PAID ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD* ------------------------------------------------ 9/1/05 2/28/06 9/1/05-2/28/06 Class A Actual...................................... $1,000.00 $1,013.65 $4.59 Hypothetical................................ 1,000.00 1,020.29 4.61 (5% annual return before expenses) Class B Actual...................................... 1,000.00 1,009.68 8.37 Hypothetical................................ 1,000.00 1,016.49 8.40 (5% annual return before expenses) Class C Actual...................................... 1,000.00 1,012.86 8.09 Hypothetical................................ 1,000.00 1,016.79 8.10 (5% annual return before expenses) Class I Actual...................................... 1,000.00 1,015.02 3.10 Hypothetical................................ 1,000.00 1,021.69 3.11 (5% annual return before expenses)
* Expenses are equal to the Fund's annualized expense ratio of 0.92%, 1.68%, 1.62% and 0.62% for Class A, B, C and I Shares, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Assumes all dividends and distributions were reinvested. 7 VAN KAMPEN HIGH YIELD FUND PORTFOLIO OF INVESTMENTS -- FEBRUARY 28, 2006 (UNAUDITED)
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - --------------------------------------------------------------------------------------------- CORPORATE BONDS 93.0% AEROSPACE 1.5% $3,745 Hexcel Corp. ................................... 6.750% 02/01/15 $ 3,773,087 6,440 K & F Acquisition, Inc. ........................ 7.750 11/15/14 6,601,000 ------------ 10,374,087 ------------ BROADCASTING 1.2% 5,825 Lin Television Corp. ........................... 6.500 05/15/13 5,555,594 1,905 Lin Television Corp., Ser B..................... 6.500 05/15/13 1,816,894 1,185 Salem Communications Corp. ..................... 7.750 12/15/10 1,222,031 ------------ 8,594,519 ------------ CABLE 6.1% 4,815 Cablecom Luxembourg SCA, 144A--Private Placement (Euro) (Luxembourg) (a)......................... 9.375 04/15/14 6,522,030 6,005 Cablevision Systems Corp. (Variable Rate Coupon).................................... 8.716 04/01/09 6,237,694 3,794 CCH I, LLC, 144A--Private Placement (a)......... 11.000 10/01/15 3,210,672 7,820 Echostar DBS Corp. ............................. 6.375 10/01/11 7,683,150 1,290 Echostar DBS Corp. ............................. 6.625 10/01/14 1,260,975 460 Intelsat Bermuda Ltd., 144A--Private Placement (Bermuda) (a)................................... 8.500 01/15/13 472,650 4,315 Intelsat Bermuda Ltd., 144A--Private Placement (Bermuda) (a)................................... 8.875 01/15/15 4,498,387 3,255 Intelsat Bermuda Ltd., 144A--Private Placement (Variable Rate Coupon) (Bermuda) (a)............ 9.614 01/15/12 3,336,375 898 PanAmSat Corp. ................................. 9.000 08/15/14 951,880 7,205 PanAmSat Holding Corp. (b)...................... 0/10.375 11/01/14 5,160,581 2,295 Renaissance Media Group......................... 10.000 04/15/08 2,303,606 630 Satelites Mexicanos SA, Ser B (Mexico) (c) (e)............................................. 10.125 11/01/04 396,900 ------------ 42,034,900 ------------ CHEMICALS 5.7% 2,855 Cognis Deutschland GmbH & Co., 144A--Private Placement (Euro) (Variable Rate Coupon) (Germany) (a)................................... 7.226 11/15/13 3,518,311 4,950 Equistar Chemicals LP........................... 10.125 09/01/08 5,346,000 620 Equistar Chemicals LP........................... 10.625 05/01/11 677,350 952 Huntsman International LLC...................... 10.125 07/01/09 980,560 4,000 Huntsman International LLC (Euro)............... 10.125 07/01/09 4,982,977 2,308 Innophos Investments Holdings, Inc., 144A--Private Placement (Variable Rate Coupon) (a)............................................. 12.749 02/15/15 2,227,407 4,075 Innophos, Inc., 144A--Private Placement (a)..... 8.875 08/15/14 4,217,625 1,485 Koppers, Inc. .................................. 9.875 10/15/13 1,611,225 1,930 Millennium America, Inc. ....................... 9.250 06/15/08 1,992,725 1,640 Nalco Co. ...................................... 7.750 11/15/11 1,676,900 5,110 Nalco Co. ...................................... 8.875 11/15/13 5,378,275 2,268 Rockwood Specialties Group, Inc. ............... 10.625 05/15/11 2,506,140
8 See Notes to Financial Statements VAN KAMPEN HIGH YIELD FUND PORTFOLIO OF INVESTMENTS -- FEBRUARY 28, 2006 (UNAUDITED) continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - --------------------------------------------------------------------------------------------- CHEMICALS (CONTINUED) $1,390 Rockwood Specialties Group, Inc., 144A--Private Placement (Euro) (a)............................ 7.625% 11/15/14 $ 1,723,299 2,940 Westlake Chemical Corp. ........................ 6.625 01/15/16 2,951,025 ------------ 39,789,819 ------------ CONSUMER PRODUCTS 2.9% 8,210 Levi Strauss & Co. (Variable Rate Coupon)....... 9.280 04/01/12 8,517,875 2,295 Oxford Industrials, Inc. ....................... 8.875 06/01/11 2,375,325 4,635 Rayovac Corp. .................................. 8.500 10/01/13 4,252,612 2,860 Spectrum Brands, Inc. .......................... 7.375 02/01/15 2,481,050 2,632 Tempur Pedic, Inc. ............................. 10.250 08/15/10 2,829,400 ------------ 20,456,262 ------------ DIVERSIFIED MEDIA 4.3% 1,155 Advanstar Communications, Inc. ................. 10.750 08/15/10 1,264,725 2,840 AMC Entertainment, Inc. (Variable Rate Coupon)......................................... 8.999 08/15/10 2,953,600 6,187 CanWest Media, Inc. (Canada).................... 8.000 09/15/12 6,372,453 2,282 Dex Media East/Finance Corp., LLC............... 12.125 11/15/12 2,644,267 3,587 Dex Media West/Finance Corp., LLC, Ser B........ 9.875 08/15/13 3,990,537 1,870 Houghton Mifflin Co. ........................... 8.250 02/01/11 1,963,500 5,405 Houghton Mifflin Co. ........................... 9.875 02/01/13 5,918,475 1,525 Nebraska Book Co., Inc. ........................ 8.625 03/15/12 1,441,125 3,730 Primedia, Inc. ................................. 8.875 05/15/11 3,608,775 ------------ 30,157,457 ------------ ENERGY 9.2% 4,925 Chaparral Energy, Inc., 144A--Private Placement (a)................................... 8.500 12/01/15 5,232,812 6,870 CHC Helicopter Corp. (Canada)................... 7.375 05/01/14 7,050,337 2,325 Chesapeake Energy Corp. ........................ 6.375 06/15/15 2,336,625 3,200 Chesapeake Energy Corp. ........................ 6.625 01/15/16 3,264,000 5,320 Chesapeake Energy Corp. ........................ 7.500 09/15/13 5,685,750 1,645 Compagnie Generale de Geophysique SA (France)... 7.500 05/15/15 1,727,250 5,120 El Paso Production Holding Co. ................. 7.750 06/01/13 5,427,200 1,800 Hanover Compressor Co. ......................... 8.625 12/15/10 1,910,250 890 Hanover Compressor Co. ......................... 9.000 06/01/14 974,550 109 Hanover Equipment Trust, Ser A.................. 8.500 09/01/08 113,087 3,042 Hanover Equipment Trust, Ser B.................. 8.750 09/01/11 3,224,520 5,460 Hilcorp Energy/Finance Corp., 144A--Private Placement (a)................................... 7.750 11/01/15 5,555,550 2,731 Hilcorp Energy/Finance Corp., 144A--Private Placement (a)................................... 10.500 09/01/10 3,045,065 3,460 Husky Oil Ltd. (Variable Rate Coupon) (Canada)........................................ 8.900 08/15/28 3,690,311 1,863 Magnum Hunter Resources, Inc. .................. 9.600 03/15/12 2,021,355 3,450 Pacific Energy Partners......................... 7.125 06/15/14 3,579,375
See Notes to Financial Statements 9 VAN KAMPEN HIGH YIELD FUND PORTFOLIO OF INVESTMENTS -- FEBRUARY 28, 2006 (UNAUDITED) continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - --------------------------------------------------------------------------------------------- ENERGY (CONTINUED) $4,020 Pogo Producing Co. ............................. 6.875% 10/01/17 $ 4,070,250 4,422 Vintage Petroleum, Inc. ........................ 7.875 05/15/11 4,614,498 ------------ 63,522,785 ------------ FINANCIAL 0.5% 3,395 Residential Capital Corp. ...................... 6.375 06/30/10 3,431,157 ------------ FOOD & DRUG 2.7% 1,800 Albertson's, Inc. .............................. 7.250 05/01/13 1,797,289 1,450 Albertson's, Inc. .............................. 7.500 02/15/11 1,475,278 2,625 Delhaize America, Inc. ......................... 8.125 04/15/11 2,865,967 1,450 Jean Coutu Group (PJC), Inc. (Canada)........... 7.625 08/01/12 1,457,250 3,740 Jean Coutu Group (PJC), Inc. (Canada)........... 8.500 08/01/14 3,590,400 1,700 Jitney-Jungle Stores America, Inc. (c) (e) (f)............................................. 12.000 03/01/06 0 3,856 Kroger Co., 144A--Private Placement (a)......... 8.500 07/15/17 4,188,631 3,130 Rite Aid Corp. ................................. 8.125 05/01/10 3,208,250 ------------ 18,583,065 ------------ FOOD & TOBACCO 4.4% 3,125 Michael Foods, Inc. ............................ 8.000 11/15/13 3,203,125 4,420 Pilgrim's Pride Corp. .......................... 9.250 11/15/13 4,652,050 7,095 Pilgrim's Pride Corp. .......................... 9.625 09/15/11 7,547,306 7,685 RJ Reynolds Tobacco Holdings, Inc. ............. 6.500 07/15/10 7,761,850 5,545 Smithfield Foods, Inc. ......................... 7.000 08/01/11 5,642,037 450 Smithfield Foods, Inc., Ser B................... 7.750 05/15/13 473,062 1,080 Smithfield Foods, Inc., Ser B................... 8.000 10/15/09 1,134,000 ------------ 30,413,430 ------------ FOREST PRODUCTS 5.4% 4,090 Abitibi-Consolidated, Inc. (Canada)............. 6.000 06/20/13 3,435,600 1,470 Abitibi-Consolidated, Inc. (Canada)............. 7.750 06/15/11 1,394,662 3,815 Covalence Specialty Materials Corp., 144A--Private Placement (a)..................... 10.250 03/01/16 3,972,369 2,015 Crown Americas, 144A--Private Placement (a)..... 7.625 11/15/13 2,110,713 1,975 Crown European Holdings SA (Euro) (France)...... 6.250 09/01/11 2,551,578 3,840 Graham Packaging Co., Inc. ..................... 8.500 10/15/12 3,931,200 3,965 Graham Packaging Co., Inc. ..................... 9.875 10/15/14 4,044,300 4,870 Graphic Packaging International, Inc. .......... 9.500 08/15/13 4,650,850 1,535 JSG Funding PLC (Euro) (Ireland)................ 10.125 10/01/12 2,031,159 130 Owens-Brockway Glass Containers, Inc. .......... 8.875 02/15/09 136,013 2,100 Owens-Illinois, Inc. ........................... 7.350 05/15/08 2,136,750 5,540 Owens-Illinois, Inc. ........................... 7.500 05/15/10 5,636,950 855 Pliant Corp. (c) (e)............................ 11.125 09/01/09 790,875 1,985 Pliant Corp. (c) (e)............................ 13.000 06/01/10 496,250 1,495 Pliant Corp. (c) (e)............................ 13.000 06/01/10 373,750 ------------ 37,693,019 ------------
10 See Notes to Financial Statements VAN KAMPEN HIGH YIELD FUND PORTFOLIO OF INVESTMENTS -- FEBRUARY 28, 2006 (UNAUDITED) continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - --------------------------------------------------------------------------------------------- GAMING & LEISURE 6.2% $ 475 Caesars Entertainment........................... 7.000% 04/15/13 $ 503,344 993 Caesars Entertainment........................... 8.875 09/15/08 1,073,681 434 HMH Properties, Inc., Ser B..................... 7.875 08/01/08 438,883 5,365 Host Marriott LP................................ 6.375 03/15/15 5,378,413 4,240 Host Marriott LP................................ 7.125 11/01/13 4,399,000 7,200 Isle of Capri Casinos, Inc. .................... 7.000 03/01/14 7,236,000 5,440 Las Vegas Sands Corp. .......................... 6.375 02/15/15 5,304,000 9,470 MGM Mirage, Inc. ............................... 6.000 10/01/09 9,470,000 1,835 Starwood Hotels & Resorts Worldwide, Inc. ...... 7.875 05/01/12 2,023,088 3,005 Station Casinos, Inc. .......................... 6.000 04/01/12 3,020,025 3,795 Station Casinos, Inc. .......................... 6.875 03/01/16 3,880,388 ------------ 42,726,822 ------------ HEALTHCARE 7.4% 4,145 AmerisourceBergen Corp., 144A--Private Placement (a)............................................. 5.625 09/15/12 4,144,105 2,860 Community Health Systems, Inc. ................. 6.500 12/15/12 2,845,700 3,275 DaVita, Inc. ................................... 6.625 03/15/13 3,340,500 3,375 Fisher Scientific International, Inc. .......... 6.125 07/01/15 3,396,094 6,805 Fresenius Medical Care Capital Trust IV......... 7.875 06/15/11 7,247,325 3,750 HCA, Inc. ...................................... 6.300 10/01/12 3,755,175 2,085 HCA, Inc. ...................................... 8.700 02/10/10 2,267,260 940 HCA, Inc. ...................................... 8.750 09/01/10 1,038,595 3,980 Medcath Holdings Corp. ......................... 9.875 07/15/12 4,154,125 850 National Nephrology Associates, Inc., 144A--Private Placement (a)..................... 9.000 11/01/11 947,147 3,680 Omnicare, Inc. ................................. 6.750 12/15/13 3,762,800 1,480 Tenet Healthcare Corp. ......................... 7.375 02/01/13 1,365,300 3,880 Tenet Healthcare Corp. ......................... 9.875 07/01/14 3,967,300 4,900 VWR International, Inc. ........................ 6.875 04/15/12 4,900,000 3,975 Warner Chilcott Corp., 144A--Private Placement (Variable Rate Coupon) (a)...................... 9.000 02/01/15 3,925,313 ------------ 51,056,739 ------------ HOUSING 2.7% 1,495 Associated Materials, Inc. (b).................. 0/11.250 03/01/14 799,825 1,350 Goodman Global Holdings, Inc., Ser B (Variable Rate Coupon).................................... 7.491 06/15/12 1,380,375 1,180 Interface, Inc. ................................ 7.300 04/01/08 1,209,500 4,465 Interface, Inc. ................................ 9.500 02/01/14 4,598,950 1,435 Interface, Inc. ................................ 10.375 02/01/10 1,574,913 5,915 Nortek, Inc. ................................... 8.500 09/01/14 5,929,788 1,870 Technical Olympic USA, Inc. .................... 9.000 07/01/10 1,935,450 1,612 Technical Olympic USA, Inc. .................... 10.375 07/01/12 1,643,837 ------------ 19,072,638 ------------
See Notes to Financial Statements 11 VAN KAMPEN HIGH YIELD FUND PORTFOLIO OF INVESTMENTS -- FEBRUARY 28, 2006 (UNAUDITED) continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - --------------------------------------------------------------------------------------------- INFORMATION TECHNOLOGY 1.8% $ 525 Iron Mountain, Inc. ............................ 6.625% 01/01/16 $ 497,438 2,300 Iron Mountain, Inc. ............................ 7.750 01/15/15 2,340,250 5,045 Iron Mountain, Inc. ............................ 8.625 04/01/13 5,284,638 3,540 Sungard Data Systems, Inc., 144A--Private Placement (a)................................... 9.125 08/15/13 3,783,375 320 Sungard Data Systems, Inc., 144A--Private Placement (Variable Rate Coupon) (a)............ 9.431 08/15/13 339,200 ------------ 12,244,901 ------------ MANUFACTURING 3.2% 2,185 General Cable Corp. ............................ 9.500 11/15/10 2,359,800 1,959 JohnsonDiversey, Inc. (Euro).................... 9.625 05/15/12 2,440,413 4,463 JohnsonDiversey, Inc., Ser B.................... 9.625 05/15/12 4,596,890 2,574 Manitowoc Co., Inc. ............................ 10.500 08/01/12 2,863,575 55 Manitowoc Co., Inc. (Euro)...................... 10.375 05/15/11 70,483 6,525 NMHG Holdings Co. .............................. 10.000 05/15/09 6,916,500 3,265 Propex Fabrics, Inc. ........................... 10.000 12/01/12 2,922,175 ------------ 22,169,836 ------------ METALS 3.8% 1,340 Foundation PA Coal Co. ......................... 7.250 08/01/14 1,380,200 6,170 Massey Energy Co., 144A--Private Placement (a)............................................. 6.875 12/15/13 6,185,425 9,300 Novelis, Inc., 144A--Private Placement (Canada) (a)............................................. 7.250 02/15/15 9,067,500 2,445 SGL Carbon Luxembourg SA, 144A--Private Placement (Euro) (Luxembourg) (a)............... 8.500 02/01/12 3,191,579 5,992 UCAR Finance, Inc. ............................. 10.250 02/15/12 6,411,440 ------------ 26,236,144 ------------ RETAIL 1.2% 3,110 Brown Shoe Co., Inc. ........................... 8.750 05/01/12 3,296,600 5,005 Linens 'n Things, Inc., 144A--Private Placement (Variable Rate Coupon) (a)...................... 10.366 01/15/14 5,055,050 ------------ 8,351,650 ------------ SERVICES 2.9% 5,715 Allied Waste North America, Inc. ............... 6.375 04/15/11 5,657,850 1,850 Allied Waste North America, Inc. ............... 7.875 04/15/13 1,933,250 1,437 Allied Waste North America, Inc., Ser B......... 9.250 09/01/12 1,566,330 1,590 Buhrmann US, Inc. .............................. 7.875 03/01/15 1,593,975 3,580 Buhrmann US, Inc. .............................. 8.250 07/01/14 3,696,350 4,245 MSW Energy Holdings LLC, Ser B.................. 7.375 09/01/10 4,414,800 985 MSW Energy Holdings/Finance..................... 8.500 09/01/10 1,053,950 ------------ 19,916,505 ------------ TELECOMMUNICATIONS 2.2% 4,186 Axtel SA (Mexico)............................... 11.000 12/15/13 4,855,760 6,030 Exodus Communications, Inc. (c) (e) (f)......... 11.250 07/01/08 0 770 Exodus Communications, Inc. (c) (e) (f)......... 11.625 07/15/10 0 4,000 Exodus Communications, Inc. (Euro) (c) (e) (f)............................................. 11.375 07/15/08 0
12 See Notes to Financial Statements VAN KAMPEN HIGH YIELD FUND PORTFOLIO OF INVESTMENTS -- FEBRUARY 28, 2006 (UNAUDITED) continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - --------------------------------------------------------------------------------------------- TELECOMMUNICATIONS (CONTINUED) $8,250 GST Network Funding, Inc. (c) (e) (f)........... 10.500% 05/01/08 $ 825 4,000 Park N View, Inc., Ser B (c) (e) (f)............ 13.000 05/15/08 0 4,405 Qwest Communications International, Inc. (Variable Rate Coupon).......................... 8.249 02/15/09 4,520,631 990 Qwest Corp. .................................... 5.625 11/15/08 985,050 4,480 Wind Acquisition Finance SA, 144A--Private Placement (Luxembourg) (a) (d).................. 10.750 12/01/15 4,816,000 ------------ 15,178,266 ------------ TRANSPORTATION 8.0% 6,725 Amsted Industries, Inc., 144A--Private Placement (a)................................... 10.250 10/15/11 7,330,250 1,765 Arvinmeritor, Inc. ............................. 8.750 03/01/12 1,738,525 4,800 Ford Motor Co. ................................. 7.450 07/16/31 3,432,000 3,935 Ford Motor Credit Co. .......................... 5.625 10/01/08 3,575,738 4,450 General Motors Acceptance Corp. ................ 4.375 12/10/07 4,096,127 1,740 General Motors Acceptance Corp. ................ 6.875 09/15/11 1,559,677 1,690 General Motors Corp. ........................... 7.125 07/15/13 1,208,350 8,435 General Motors Corp. ........................... 8.375 07/15/33 5,988,850 7,040 Lear Corp., Ser B............................... 8.110 05/15/09 6,216,982 5,720 Petro Stopping Centers, LP...................... 9.000 02/15/12 5,820,100 8,425 Sonic Automotive, Inc., Ser B................... 8.625 08/15/13 8,488,188 5,471 TRW Automotive, Inc. ........................... 9.375 02/15/13 5,963,390 ------------ 55,418,177 ------------ UTILITY 6.8% 925 AES Corp. ...................................... 7.750 03/01/14 981,656 528 AES Corp. ...................................... 8.875 02/15/11 574,200 740 AES Corp. ...................................... 9.375 09/15/10 815,850 3,035 AES Corp., 144A--Private Placement (a).......... 9.000 05/15/15 3,323,325 5,930 CMS Energy Corp. ............................... 7.500 01/15/09 6,152,375 2,825 Colorado Interstate Gas Co., 144A--Private Placement (a)................................... 6.800 11/15/15 2,972,070 1,355 IPALCO Enterprises, Inc. ....................... 8.625 11/14/11 1,507,438 4,645 Monongahela Power Co. .......................... 5.000 10/01/06 4,637,261 2,515 Nevada Power Co. ............................... 9.000 08/15/13 2,793,551 2,945 Nevada Power Co., Ser A......................... 8.250 06/01/11 3,280,877 995 Northwest Pipeline Corp. ....................... 8.125 03/01/10 1,058,431 5,695 Ormat Funding Corp. ............................ 8.250 12/30/20 5,780,439 4,030 PSEG Energy Holdings............................ 8.625 02/15/08 4,261,725 1,955 Southern Natural Gas Co. ....................... 8.875 03/15/10 2,100,884 6,210 Williams Cos., Inc. ............................ 7.875 09/01/21 6,970,725 ------------ 47,210,807 ------------ WIRELESS COMMUNICATIONS 2.9% 3,090 American Tower Corp. ........................... 7.125 10/15/12 3,252,225 3,085 American Tower Corp. ........................... 7.500 05/01/12 3,270,100 3,865 Rural Cellular Corp. (Variable Rate Coupon)..... 8.991 03/15/10 3,961,625
See Notes to Financial Statements 13 VAN KAMPEN HIGH YIELD FUND PORTFOLIO OF INVESTMENTS -- FEBRUARY 28, 2006 (UNAUDITED) continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - --------------------------------------------------------------------------------------------- WIRELESS COMMUNICATIONS (CONTINUED) $4,249 SBA Communications Corp. (b).................... 0/9.750% 12/15/11 $ 4,047,173 1,148 SBA Communications Corp. ....................... 8.500 12/01/12 1,268,540 4,040 UbiquiTel Operating Co. ........................ 9.875 03/01/11 4,464,200 ------------ 20,263,863 ------------ TOTAL CORPORATE BONDS 93.0%........................................ 644,896,848 ------------ FOREIGN CONVERTIBLE CORPORATE OBLIGATION 0.5% 3,980 Nortel Networks Corp. (Canada).................. 4.250 09/01/08 3,776,025 ------------ EQUITIES 0.2% DecisionOne Corp. (10,890 Common Stock Warrants Class A) (f) (g).............. 0 DecisionOne Corp. (18,765 Common Stock Warrants Class B) (f) (g).............. 0 DecisionOne Corp. (11,130 Common Stock Warrants Class C) (f) (g).............. 0 DecisionOne Corp. (19,895 Common Shares) (f) (g).............................. 0 Doe Run Resources Corp. (29 Common Stock Warrants) (f) (g).................... 0 HCI Direct, Inc. (106,250 Common Shares Class A) (f) (g)...................... 1,275,000 HF Holdings, Inc. (36,820 Common Stock Warrants) (f) (g)...................... 0 Hosiery Corp. of America, Inc., 144A--Private Placement (1,000 Common Shares Class A) (a) (f) (g).......................................................... 0 Jazztel, Plc, 144A--Private Placement (5,000 Common Stock Warrants) (Euro) (United Kingdom) (a) (f) (g).................................................. 0 OpTel, Inc., 144A--Private Placement (3,275 Common Shares) (a) (f) (g)........ 0 Park N View, Inc., 144A--Private Placement (4,000 Common Stock Warrants) (a) (e) (f) (g)................................................................... 0 Reunion Industries, Inc. (107,947 Common Stock Warrants) (f) (g).............. 0 Ventelo, Inc., 144A--Private Placement (73,021 Common Shares) (Euro) (United Kingdom) (a) (f) (g).......................................................... 0
14 See Notes to Financial Statements VAN KAMPEN HIGH YIELD FUND PORTFOLIO OF INVESTMENTS -- FEBRUARY 28, 2006 (UNAUDITED) continued
DESCRIPTION VALUE - ------------------------------------------------------------------------------------------------- EQUITIES (CONTINUED) Viatel Holding Bermuda Ltd$. (7,852 Common Shares) (Bermuda) (g).................. $ 324 VS Holdings, Inc. (946,962 Common Shares) (f) (g)................................. 0 ------------ TOTAL EQUITIES.................................................................... 1,275,324 ------------ TOTAL LONG-TERM INVESTMENTS 93.7% (Cost $682,512,863)............................................................. 649,948,197 REPURCHASE AGREEMENT 4.7% State Street Bank & Trust Co. ($32,719,000 par collateralized by U.S. Government obligations in a pooled cash account, interest rate of 4.49%, dated 02/28/06, to be sold on 03/01/06 at $32,723,081) (Cost $32,719,000).............................................................. 32,719,000 ------------ TOTAL INVESTMENTS 98.4% (Cost $715,231,863)............................................................. 682,667,197 OTHER ASSETS IN EXCESS OF LIABILITIES 1.6%....................................... 10,883,294 ------------ NET ASSETS 100.0%................................................................ $693,550,491 ============
Percentages are calculated as a percentage of net assets. (a) 144A securities are those which are exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may only be resold in transactions exempt from registration which are normally those transactions with qualified institutional buyers. (b) Security is a "step-up" bond where the coupon increases or steps up at a predetermined date. (c) Non-income producing as security is in default. (d) All or a portion of this security was purchased on a when-issued or delayed delivery basis. (e) This borrower has filed for protection in federal bankruptcy court. (f) Market value is determined in accordance with procedures established in good faith by the Board of Trustees. (g) Non-income producing security as this stock currently does not declare dividends. (Euro)--Eurodollar See Notes to Financial Statements 15 VAN KAMPEN HIGH YIELD FUND PORTFOLIO OF INVESTMENTS -- FEBRUARY 28, 2006 (UNAUDITED) continued SWAP AGREEMENTS OUTSTANDING AT FEBRUARY 28, 2006: CREDIT DEFAULT SWAPS
NOTIONAL UNREALIZED BUY/SELL PAY/RECEIVE EXPIRATION AMOUNT APPRECIATION/ COUNTERPARTY REFERENCE ENTITY PROTECTION FIXED RATE DATE (000) DEPRECIATION - --------------------------------------------------------------------------------------------------------------- Goldman Sachs Capital Markets Eastman Kodak Co. Sell 2.87% 3/20/11 $5,200 $130,984
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AS OF FEBRUARY 28, 2006:
UNREALIZED IN CURRENT APPRECIATION/ FORWARD CONTRACTS EXCHANGE FOR VALUE DEPRECIATION - ---------------------------------------------------------------------------------------- SHORT CONTRACTS: Euro Currency 11,073,000 expiring 3/27/06................. US$ $13,220,908 $421,471 11,420,000 expiring 3/27/06................. US$ 13,635,218 431,138 -------- $852,609 --------
16 See Notes to Financial Statements VAN KAMPEN HIGH YIELD FUND FINANCIAL STATEMENTS Statement of Assets and Liabilities February 28, 2006 (Unaudited) ASSETS: Total Investments (Cost $715,231,863)....................... $ 682,667,197 Cash........................................................ 328 Receivables: Interest.................................................. 13,367,248 Investments Sold.......................................... 1,134,200 Fund Shares Sold.......................................... 682,503 Forward Foreign Currency Contracts.......................... 852,609 Swap Contracts.............................................. 130,984 Other....................................................... 296,143 -------------- Total Assets............................................ 699,131,212 -------------- LIABILITIES: Payables: Fund Shares Repurchased................................... 2,267,985 Income Distributions...................................... 1,062,096 Investments Purchased..................................... 849,975 Distributor and Affiliates................................ 526,022 Investment Advisory Fee................................... 213,292 Trustees' Deferred Compensation and Retirement Plans........ 385,663 Accrued Expenses............................................ 275,688 -------------- Total Liabilities....................................... 5,580,721 -------------- NET ASSETS.................................................. $ 693,550,491 ============== NET ASSETS CONSIST OF: Capital (Par value of $.01 per share with an unlimited number of shares authorized).............................. $1,296,754,104 Accumulated Undistributed Net Investment Income............. (3,418,912) Net Unrealized Depreciation................................. (31,583,459) Accumulated Net Realized Loss............................... (568,201,242) -------------- NET ASSETS.................................................. $ 693,550,491 ============== MAXIMUM OFFERING PRICE PER SHARE: Class A Shares: Net asset value and redemption price per share (Based on net assets of $487,270,544 and 137,632,787 shares of beneficial interest issued and outstanding)............. $ 3.54 Maximum sales charge (4.75%* of offering price)......... .18 -------------- Maximum offering price to public........................ $ 3.72 ============== Class B Shares: Net asset value and offering price per share (Based on net assets of $158,433,652 and 44,511,173 shares of beneficial interest issued and outstanding)............. $ 3.56 ============== Class C Shares: Net asset value and offering price per share (Based on net assets of $45,858,169 and 13,040,495 shares of beneficial interest issued and outstanding)............. $ 3.52 ============== Class I Shares: Net asset value and offering price per share (Based on net assets of $1,988,126 and 561,372 shares of beneficial interest issued and outstanding)............. $ 3.54 ==============
* On sales of $100,000 or more, the sales charge will be reduced. See Notes to Financial Statements 17 VAN KAMPEN HIGH YIELD FUND FINANCIAL STATEMENTS continued Statement of Operations For the Six Months Ended February 28, 2006 (Unaudited) INVESTMENT INCOME: Interest.................................................... $ 28,416,743 Dividends................................................... 2,451 Other....................................................... 581,958 ------------ Total Income............................................ 29,001,152 ------------ EXPENSES: Distribution (12b-1) and Service Fees (Attributed to Classes A, B and C of $589,577, $839,161 and $223,012, respectively)............................................. 1,651,750 Investment Advisory Fee..................................... 1,411,465 Shareholder Services........................................ 778,848 Custody..................................................... 68,632 Trustees' Fees and Related Expenses......................... 25,253 Legal....................................................... 19,361 Other....................................................... 97,128 ------------ Total Expenses.......................................... 4,052,437 Less Credits Earned on Cash Balances.................... 37,022 ------------ Net Expenses............................................ 4,015,415 ------------ NET INVESTMENT INCOME....................................... $ 24,985,737 ============ REALIZED AND UNREALIZED GAIN/LOSS: Realized Gain/Loss: Investments............................................... $ (5,843,682) Foreign Currency Transactions............................. (106,755) ------------ Net Realized Loss........................................... (5,950,437) ------------ Unrealized Appreciation/Depreciation: Beginning of the Period................................... (20,395,111) ------------ End of the Period: Investments............................................. (32,564,666) Forward Foreign Currency Contracts...................... 852,609 Swap Contracts.......................................... 130,984 Foreign Currency Translation............................ (2,386) ------------ (31,583,459) ------------ Net Unrealized Depreciation During the Period............... (11,188,348) ------------ NET REALIZED AND UNREALIZED LOSS............................ $(17,138,785) ============ NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $ 7,846,952 ============
18 See Notes to Financial Statements VAN KAMPEN HIGH YIELD FUND FINANCIAL STATEMENTS continued Statements of Changes in Net Assets (Unaudited)
FOR THE FOR THE SIX MONTHS ENDED YEAR ENDED FEBRUARY 28, 2006 AUGUST 31, 2005 ------------------------------------ FROM INVESTMENT ACTIVITIES: Operations: Net Investment Income................................... $ 24,985,737 $ 51,865,645 Net Realized Gain/Loss.................................. (5,950,437) 3,062,032 Net Unrealized Depreciation During the Period........... (11,188,348) (12,909,658) ------------- ------------- Change in Net Assets from Operations.................... 7,846,952 42,018,019 ------------- ------------- Distributions from Net Investment Income: Class A Shares........................................ (18,915,985) (35,174,855) Class B Shares........................................ (5,840,189) (12,164,487) Class C Shares........................................ (1,682,121) (3,384,973) Class I Shares........................................ (413,748) (82,724) ------------- ------------- Total Distributions..................................... (26,852,043) (50,807,039) ------------- ------------- NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES..... (19,005,091) (8,789,020) ------------- ------------- FROM CAPITAL TRANSACTIONS: Proceeds from Shares Sold............................... 79,974,830 489,332,752 Net Asset Value of Shares Issued Through Dividend Reinvestment.......................................... 19,471,025 37,014,423 Cost of Shares Repurchased.............................. (187,767,424) (298,295,554) ------------- ------------- NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS...... (88,321,569) 228,051,621 ------------- ------------- TOTAL INCREASE/DECREASE IN NET ASSETS................... (107,326,660) 219,262,601 NET ASSETS: Beginning of the Period................................. 800,877,151 581,614,550 ------------- ------------- End of the Period (Including accumulated undistributed net investment income of $(3,418,912) and $(1,552,606), respectively)........................... $ 693,550,491 $ 800,877,151 ============= =============
See Notes to Financial Statements 19 VAN KAMPEN HIGH YIELD FUND FINANCIAL HIGHLIGHTS (UNAUDITED) THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE SHARE OF THE FUND OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
SIX MONTHS ENDED YEAR ENDED AUGUST 31, CLASS A SHARES FEBRUARY 28, -------------------------------------------- 2006 2005 2004 2003 2002 (A) 2001 ----------------------------------------------------------- NET ASSET VALUE, BEGINNING OF THE PERIOD......................... $ 3.63 $ 3.64 $ 3.43 $ 3.15 $ 4.23 $ 5.24 ------ ------ ------ ------ ------- ------ Net Investment Income.......... .13(b) .26 .26 .29 .39 .51 Net Realized and Unrealized Gain/Loss.................... (.08) (.02) .21 .29 (1.01) (.96) ------ ------ ------ ------ ------- ------ Total from Investment Operations..................... .05 .24 .47 .58 (.62) (.45) ------ ------ ------ ------ ------- ------ Less: Distributions from Net Investment Income............ .14 .25 .25 .24 .43 .55 Return of Capital Distributions................ -0- -0- .01 .06 .03 .01 ------ ------ ------ ------ ------- ------ Total Distributions.............. .14 .25 .26 .30 .46 .56 ------ ------ ------ ------ ------- ------ NET ASSET VALUE, END OF THE PERIOD......................... $ 3.54 $ 3.63 $ 3.64 $ 3.43 $ 3.15 $ 4.23 ====== ====== ====== ====== ======= ====== Total Return (c)................. 1.36%* 6.89% 14.02% 19.26% -15.75% -9.04% Net Assets at End of the Period (In millions).................. $487.3 $532.0 $379.5 $408.7 $ 308.5 $394.4 Ratio of Expenses to Average Net Assets (d)..................... .92% 1.06% 1.06% 1.12% 1.08% 1.05% Ratio of Net Investment Income to Average Net Assets............. 7.25% 7.11% 7.45% 8.36% 10.39% 10.93% Portfolio Turnover............... 26%* 84% 88% 95% 83% 80%
* Non-Annualized (a) As required, effective September 1, 2001, the Fund has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium on fixed income securities and presenting paydown gains and losses on mortgage- and asset-backed securities as interest income. The effect of these changes for the period ended August 31, 2002 was to decrease the ratio of net investment income to average net assets from 10.49% to 10.39%. Net investment income per share and net realized gains and losses per share were unaffected by the adjustments. Per share, ratios and supplemental data for periods prior to August 31, 2002 have not been restated to reflect this change in presentation. (b) Based on average shares outstanding. (c) Assumes reinvestment of all distributions for the period and does not include payment of the maximum sales charge of 4.75% or contingent deferred sales charge (CDSC). On purchases of $1 million or more, a CDSC of 1% may be imposed on certain redemptions made within eighteen months of purchase. If the sales charges were included, total returns would be lower. These returns include Rule 12b-1 fees and service fees of up to .25% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. (d) 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 six months ended February 28, 2006. 20 See Notes to Financial Statements VAN KAMPEN HIGH YIELD FUND FINANCIAL HIGHLIGHTS (UNAUDITED) continued THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE SHARE OF THE FUND OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
SIX MONTHS ENDED YEAR ENDED AUGUST 31, CLASS B SHARES FEBRUARY 28, -------------------------------------------- 2006 2005 2004 2003 2002 (A) 2001 ----------------------------------------------------------- NET ASSET VALUE, BEGINNING OF THE PERIOD......................... $ 3.65 $ 3.65 $ 3.44 $ 3.16 $ 4.24 $ 5.25 ------ ------ ------ ------ ------- ------ Net Investment Income.......... .12(b) .25 .23 .25 .35 .48 Net Realized and Unrealized Gain/Loss.................... (.09) (.02) .21 .30 (1.01) (.97) ------ ------ ------ ------ ------- ------ Total from Investment Operations..................... .03 .23 .44 .55 (.66) (.49) ------ ------ ------ ------ ------- ------ Less: Distributions from Net Investment Income............ .12 .23 .22 .21 .39 .51 Return of Capital Distributions................ -0- -0- .01 .06 .03 .01 ------ ------ ------ ------ ------- ------ Total Distributions.............. .12 .23 .23 .27 .42 .52 ------ ------ ------ ------ ------- ------ NET ASSET VALUE, END OF THE PERIOD......................... $ 3.56 $ 3.65 $ 3.65 $ 3.44 $ 3.16 $ 4.24 ====== ====== ====== ====== ======= ====== Total Return (c)................. .97%* 6.36% 12.79% 18.27% -16.12% -9.80% Net Assets at End of the Period (In millions).................. $158.4 $191.0 $160.7 $175.6 $ 168.8 $249.6 Ratio of Expenses to Average Net Assets (d)..................... 1.68% 1.83% 1.82% 1.89% 1.84% 1.83% Ratio of Net Investment Income to Average Net Assets............. 6.49% 6.33% 6.70% 7.68% 9.67% 10.13% Portfolio Turnover............... 26%* 84% 88% 95% 83% 80%
* Non-Annualized (a) As required, effective September 1, 2001, the Fund has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium on fixed income securities and presenting paydown gains and losses on mortgage- and asset-backed securities as interest income. The effect of these changes for the period ended August 31, 2002 was to decrease the ratio of net investment income to average net assets from 9.77% to 9.67%. Net investment income per share and net realized gains and losses per share were unaffected by the adjustments. Per share, ratios and supplemental data for periods prior to August 31, 2002 have not been restated to reflect this change in presentation. (b) Based on average shares outstanding. (c) Assumes reinvestment of all distributions for the period and does not include payment of the maximum 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 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. (d) 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 six months ended February 28, 2006. See Notes to Financial Statements 21 VAN KAMPEN HIGH YIELD FUND FINANCIAL HIGHLIGHTS (UNAUDITED) continued THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE SHARE OF THE FUND OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
SIX MONTHS ENDED YEAR ENDED AUGUST 31, CLASS C SHARES FEBRUARY 28, ------------------------------------------------- 2006 2005 2004 2003 2002 (A) 2001 ----------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF THE PERIOD............. $ 3.60 $ 3.61 $ 3.41 $ 3.13 $ 4.20 $ 5.22 ------ ------ ------ ------ ------- ------- Net Investment Income..... .11(b) .25 .23 .25 .35 .48 Net Realized and Unrealized Gain/Loss.... (.07) (.03) .20 .30 (1.00) (.98) ------ ------ ------ ------ ------- ------- Total from Investment Operations................ .04 .22 .43 .55 (.65) (.50) ------ ------ ------ ------ ------- ------- Less: Distributions from Net Investment Income....... .12 .23 .22 .21 .39 .51 Return of Capital Distributions........... -0- -0- .01 .06 .03 .01 ------ ------ ------ ------ ------- ------- Total Distributions......... .12 .23 .23 .27 .42 .52 ------ ------ ------ ------ ------- ------- NET ASSET VALUE, END OF THE PERIOD.................... $ 3.52 $ 3.60 $ 3.61 $ 3.41 $ 3.13 $ 4.20 ====== ====== ====== ====== ======= ======= Total Return (c)............ 1.29%(e)* 6.17%(e) 12.98%(e) 18.14%(f) -16.04% -10.06% Net Assets at End of the Period (In millions)...... $ 45.9 $ 54.5 $ 41.4 $ 41.5 $ 36.7 $ 58.7 Ratio of Expenses to Average Net Assets (d)............ 1.62%(e) 1.82%(e) 1.81%(e) 1.86% 1.84% 1.82% Ratio of Net Investment Income to Average Net Assets.................... 6.55%(e) 6.34%(e) 6.71%(e) 7.68%(f) 9.68% 10.12% Portfolio Turnover.......... 26%* 84% 88% 95% 83% 80%
* Non-Annualized (a) As required, effective September 1, 2001, the Fund has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium on fixed income securities and presenting paydown gains and losses on mortgage- and asset-backed securities as interest income. The effect of these changes for the period ended August 31, 2002 was to decrease the ratio of net investment income to average net assets from 9.78% to 9.68%. Net investment income per share and net realized gains and losses per share were unaffected by the adjustments. Per share, ratios and supplemental data for periods prior to August 31, 2002 have not been restated to reflect this change in presentation. (b) Based on average shares outstanding. (c) 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 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. (d) 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 six months ended February 28, 2006. (e) The Total Return, Ratio of Expenses to Average Net Assets and Ratio of Net Investment Income to Average Net Assets reflect actual 12b-1 fees of less than 1% (See footnote 7). (f) Certain non-recurring payments were made to Class C Shares, resulting in an increase to the Total Return and Ratio of Net Investment Income to Average Net Assets of .01%. 22 See Notes to Financial Statements VAN KAMPEN HIGH YIELD FUND FINANCIAL HIGHLIGHTS (UNAUDITED) continued THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE SHARE OF THE FUND OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
MARCH 23, 2005 SIX MONTHS (COMMENCEMENT OF ENDED OPERATIONS) TO CLASS I SHARES FEBRUARY 28, AUGUST 31, 2006 2005 -------------------------------- NET ASSET VALUE, BEGINNING OF THE PERIOD.................. $ 3.63 $ 3.65 ------ ------ Net Investment Income................................... .14(a) .12 Net Realized and Unrealized Loss........................ (.09) (.02) ------ ------ Total from Investment Operations.......................... .05 .10 Less Distributions from Net Investment Income............. .14 .12 ------ ------ NET ASSET VALUE, END OF THE PERIOD........................ $ 3.54 $ 3.63 ====== ====== Total Return (b).......................................... 1.50%* 2.69%* Net Assets at End of the Period (In millions)............. $ 2.0 $ 23.3 Ratio of Expenses to Average Net Assets (c)............... .62% .85% Ratio of Net Investment Income to Average Net Assets...... 7.58% 6.97% Portfolio Turnover........................................ 26%* 84%
* Non-Annualized (a) Based on average shares outstanding. (b) Assumes reinvestment of all distributions for the period. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. (c) 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 six months ended February 28, 2006. See Notes to Financial Statements 23 VAN KAMPEN HIGH YIELD FUND NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 28, 2006 (UNAUDITED) 1. SIGNIFICANT ACCOUNTING POLICIES Van Kampen High Yield Fund (the "Fund"), formerly Van Kampen High Income Corporate Bond Fund, is organized as a Delaware statutory trust, and is registered as a diversified, open-end management investment company under the Investment Company Act of 1940 (the "1940 Act"), as amended. The Fund's primary investment objective is to seek to maximize current income. Capital appreciation is a secondary objective which is sought only when consistent with the Fund's primary investment objective. The Fund commenced investment operations on October 2, 1978. The Fund offers Class A Shares, Class B Shares, Class C Shares and Class I Shares. Each class of shares differs by its initial sales load, contingent deferred sales charges, the allocation of class-specific expenses and voting rights on matters affecting a single class. 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 U.S. 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 Fixed income investments and preferred stock are stated at value using market quotations or indications of value obtained from an independent pricing service. Investments in securities listed on a securities exchange are valued at their last sale price as of the close of such securities exchange. Equity securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Unlisted securities and listed securities for which the last sales price is not available are valued at the mean of the last reported bid and asked 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, which approximates market value. Forward foreign currency contracts are valued using quoted foreign exchange rates. 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 purchase and sell securities on a "when-issued" or "delayed delivery" basis, with settlement to occur at a later date. The value of the security so purchased is subject to market fluctuations during this period. The Fund will segregate assets with the custodian having an aggregate value at least equal to the amount of the when-issued or delayed delivery purchase commitments until payment is made. At February 28, 2006, the Fund had $849,975 of when-issued, delayed delivery, or forward purchase commitments. 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 (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 24 VAN KAMPEN HIGH YIELD FUND NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 28, 2006 (UNAUDITED) continued 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 and dividend income is recorded on the ex-dividend date. Discounts on debt securities are accreted and premiums are amortized over the expected life of each applicable security. 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 incremental 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 Subchapter M 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. 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 August 31, 2005, the Fund had an accumulated capital loss carryforward for tax purposes of $560,990,126 which will expire according to the following schedule:
AMOUNT EXPIRATION $ 6,411,333................................................ August 31, 2006 15,213,979................................................ August 31, 2007 33,682,013................................................ August 31, 2008 51,935,293................................................ August 31, 2009 138,518,165................................................ August 31, 2010 165,406,856................................................ August 31, 2011 117,018,188................................................ August 31, 2012 32,804,299................................................ August 31, 2013
Part of the capital loss carryforward above was acquired due to a merger with another regulated investment company. Please see Footnote 3 for details. At February 28, 2006, the cost and related gross unrealized appreciation and depreciation are as follows: Cost of investments for tax purposes........................ $717,422,010 ============ Gross tax unrealized appreciation........................... $ 25,595,536 Gross tax unrealized depreciation........................... (60,350,349) ------------ Net tax unrealized depreciation on investments.............. $(34,754,813) ============
E. DISTRIBUTION OF INCOME AND GAINS The Fund declares daily and pays monthly dividends from net investment income. Net realized gains, if any, are distributed annually. Distributions from net realized gains for book purposes may include short-term capital gains which are included in ordinary income for tax purposes. 25 VAN KAMPEN HIGH YIELD FUND NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 28, 2006 (UNAUDITED) continued The tax character of distributions paid during the year ended August 31, 2005 was as follows: Distributions paid from: Ordinary income........................................... $50,502,624 Long-term capital gain.................................... -0- Return of capital......................................... -0- ----------- $50,502,624 ===========
As of August 31, 2005, the components of distributable earnings on a tax basis were as follows: Undistributed ordinary income............................... $3,564,658
Net realized gains or losses may differ for financial reporting and tax purposes primarily as a result of the deferral of losses relating to wash sales transactions. F. EXPENSE REDUCTIONS During the six months ended February 28, 2006, the Fund's custody fee was reduced by $37,022 as a result of credits earned on cash balances. G. FOREIGN CURRENCY TRANSLATION Assets and liabilities denominated in foreign currencies and commitments under forward foreign currency contracts are translated into U.S. dollars at the mean of the quoted bid and ask prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated at the rate of exchange prevailing when such securities were acquired or sold. Realized gain and loss on foreign currency transactions on the Statement of Operations includes the net realized amount from the sale of foreign currency and the amount realized between trade date and settlement date on securities transactions. Income and expenses are translated at rates prevailing when accrued. 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:
AVERAGE DAILY NET ASSETS % PER ANNUM First $500 million.......................................... .420% Next $250 million........................................... .345 Next $250 million........................................... .295 Next $1 billion............................................. .270 Next $1 billion............................................. .245 Over $3 billion............................................. .220
For the six months ended February 28, 2006, the Fund recognized expenses of approximately $19,300 representing legal services provided by Skadden, Arps, Slate, Meagher & Flom LLP, of which a trustee of the Fund is a partner of such firm and he and his law firm provide legal services as legal counsel to the Fund. Under separate Accounting Services and Chief Compliance Officer ("CCO") Employment agreements, the Adviser provides accounting services and the CCO provides 26 VAN KAMPEN HIGH YIELD FUND NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 28, 2006 (UNAUDITED) continued compliance services to the Fund. The costs of these services are allocated to each fund. For the six months ended February 28, 2006, the Fund recognized expenses of approximately $23,400 representing Van Kampen Investments Inc.'s or its affiliates' (collectively "Van Kampen") cost of providing accounting services to the Fund, as well as, the salary, benefits and related costs of the CCO and related support staff paid by Van Kampen. Services provided pursuant to the Accounting Services and CCO Employment agreement are reported as part of "Other" expenses on the Statement of Operations. Van Kampen Investor Services Inc. (VKIS), an affiliate of the Adviser, serves as the shareholder servicing agent for the Fund. For the six months ended February 28, 2006, the Fund recognized expenses of approximately $649,900 representing transfer agency fees paid to VKIS. Transfer agency fees are determined through negotiations with the Fund's Board of Trustees. 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 also 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 $260,814 are included in "Other" assets on the Statement of Assets and Liabilities at February 28, 2006. 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 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. For the six months ended February 28, 2006, Van Kampen, as Distributor for the Fund, received net commissions on sales of the Fund's Class A Shares of approximately $51,300 and CDSC on redeemed shares of approximately $144,900. Sales charges do not represent expenses to the Fund. 27 VAN KAMPEN HIGH YIELD FUND NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 28, 2006 (UNAUDITED) continued 3. CAPITAL TRANSACTIONS For the six months ended February 28, 2006 and the year ended August 31, 2005, transactions were as follows:
FOR THE FOR THE SIX MONTHS ENDED YEAR ENDED FEBRUARY 28, 2006 AUGUST 31, 2005 ---------------------------- ---------------------------- SHARES VALUE SHARES VALUE Sales: Class A....................... 17,185,530 $ 60,709,146 86,725,464 $ 320,410,088 Class B....................... 3,579,695 12,693,886 28,208,023 105,232,841 Class C....................... 1,785,385 6,240,799 10,910,339 40,075,471 Class I....................... 97,607 330,999 6,506,107 23,614,352 ----------- ------------- ----------- ------------- Total Sales..................... 22,648,217 $ 79,974,830 132,349,933 $ 489,332,752 =========== ============= =========== ============= Dividend Reinvestment: Class A....................... 3,908,973 $ 13,802,449 7,137,575 $ 26,066,021 Class B....................... 1,160,425 4,117,854 2,331,043 8,551,256 Class C....................... 324,357 1,136,981 637,802 2,314,420 Class I....................... 117,066 413,741 22,802 82,726 ----------- ------------- ----------- ------------- Total Dividend Reinvestment..... 5,510,821 $ 19,471,025 10,129,222 $ 37,014,423 =========== ============= =========== ============= Repurchases: Class A....................... (30,122,767) $(106,839,377) (51,466,042) $(188,120,153) Class B....................... (12,613,113) (44,869,799) (22,114,193) (81,191,619) Class C....................... (4,201,801) (14,795,701) (7,880,798) (28,567,020) Class I....................... (6,067,456) (21,262,547) (114,754) (416,762) ----------- ------------- ----------- ------------- Total Repurchases............... (53,005,137) $(187,767,424) (81,575,787) $(298,295,554) =========== ============= =========== =============
On December 17, 2004, the Fund acquired all of the assets and liabilities of the Van Kampen High Yield Fund ("High Yield") through a tax free reorganization approved by High Yield shareholders on December 7, 2004. The Fund issued 49,903,883, 21,224,359 and 7,028,101 shares of Classes A, B and C valued at $186,141,484, $79,591,347 and $26,074,256, respectively, in exchange for High Yield's net assets. The shares of High Yield were converted into Fund shares at a ratio 1 to 1.515, 1 to 1.514 and 1 to 1.529 for Classes A, B and C, respectively. Net unrealized appreciation of High Yield as of December 17, 2004 was $3,802,196. The Fund assumed High Yield's book to tax amortization differences, which resulted in a $660,296 decrease to accumulated undistributed net investment income and a corresponding increase to net unrealized appreciation. Shares issued in connection with this reorganization are included in proceeds from shares sold for the year ended August 31, 2005. Combined net assets of both funds on the day of reorganization were $893,763,227. Included in these net assets was a capital loss carryforward of $166,397,364, deferred compensation of $155,071, the deferral of losses related to wash sale transactions of $290,140, non-accrual interest income of $864,492 and marked to market of $821,478, all carried forward from the High Yield Fund. 28 VAN KAMPEN HIGH YIELD FUND NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 28, 2006 (UNAUDITED) continued 4. REDEMPTION FEE Effective September 26, 2005, the Fund assesses a 2% redemption fee on the proceeds of Fund shares that are redeemed (either by sales or exchange) within 30 days of purchase. The redemption fee is paid directly to the Fund. For the six months ended February 28, 2006, the Fund received redemption fees of approximately $8,000, which are reported as part of "Cost of Shares Repurchased" in the Statement of Changes in Net Assets. 5. INVESTMENT TRANSACTIONS During the period, the cost of purchases and proceeds from sales of investments, excluding short-term investments, were $178,843,632 and $277,727,378, respectively. 6. 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 Fund's effective yield, foreign currency exposure, maturity and duration or generate potential gain. All of the Fund's holdings, including derivative instruments, are marked to market each day with the change in value reflected in unrealized appreciation/depreciation. Upon disposition, a realized gain or loss is recognized accordingly, except when taking delivery of a security underlying a forward commitment. In this instance, the recognition of gain or loss is postponed until the disposal of the security underlying the forward commitment. Purchasing securities or foreign currency on a forward commitment 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 or foreign currency on a forward commitment 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 contracts. A. FORWARD FOREIGN CURRENCY CONTRACTS A forward foreign currency contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. Upon the settlement of the contract, a realized gain or loss is recognized and is included as a component of realized gain/loss on forward foreign currency contracts. Risks may arise as a result of the potential inability of the counterparties to meet the terms of their contracts. Risks may also arise from the unanticipated movements in the value of a foreign currency relative to the U.S. dollar. B. CREDIT DEFAULT SWAPS The Fund may enter into credit default swap contracts for hedging purposes or to gain exposure to a credit in which the Fund may otherwise invest. A credit default swap is an agreement between two parties to exchange the credit risk of an issuer. A buyer of a credit default swap is said to buy protection by paying periodic fees in return for a contingent payment from the seller if the issuer has a credit event such as bankruptcy, a failure to pay outstanding obligations or deteriorating credit while the swap is outstanding. A seller of a credit default swap is said to sell protection and thus collects the periodic fees and profits if the credit of the issuer remains stable or improves while the swap is outstanding but the seller in a credit default swap contract would be required to pay an agreed-upon amount, 29 VAN KAMPEN HIGH YIELD FUND NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 28, 2006 (UNAUDITED) continued which approximates the notional amount of the swap, to the buyer in the event of an adverse credit event of the issuer. The Fund accrues for the periodic fees on swap contracts on a daily basis with the net amount accrued recorded within unrealized appreciation/depreciation of swap contracts. Upon cash settlement of the periodic fees, the net amount is recorded as realized gain/loss on swap contracts on the Statement of Operations. Credit default swaps may involve greater risks than if a Fund had invested in the issuer directly. Credit default swaps are subject to general market risk, counterparty risk and credit risk. If there is a default by the counterparty, the Fund will have contractual remedies pursuant to the agreements related to the transaction. 7. DISTRIBUTION AND SERVICE PLANS Shares of the Fund are distributed by Van Kampen Funds Inc. (the "Distributor"), an affiliate of the Adviser. The Fund has adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act, as amended, and a service plan (collectively, the "Plans") for Class A Shares, Class B Shares and Class C Shares to compensate the Distributor for the distribution, shareholder servicing and maintenance of shareholder accounts for these shares. Under the Plans, the Fund will incur annual fees of up to .25% of Class A average daily net assets and up to 1.00% each of Class B and Class C average daily net assets. These fees are accrued daily and paid to the Distributor monthly. The amount of distribution expenses incurred by the Distributor and not yet reimbursed ("unreimbursed receivable") was approximately $2,691,000 and $0 for Class B and Class C Shares, respectively. These amounts may be recovered from future payments under the distribution plan or CDSC. To the extent the unreimbursed receivable has been fully recovered, the distribution fee is reduced. 8. LEGAL MATTERS The Adviser, certain affiliates of the Adviser, and certain investment companies advised by the Adviser or its affiliates, including the Fund, are named as defendants in a number of similar class action complaints which were consolidated. The consolidated action also names as defendants certain individual Trustees and Directors of certain investment companies advised by affiliates of the Adviser; the complaint does not, however, name the individual Trustees of any Van Kampen funds. The consolidated amended complaint generally alleges that defendants violated their statutory disclosure obligations and fiduciary duties by failing properly to disclose (i) that the Adviser and certain affiliates of the Adviser allegedly offered economic incentives to brokers and others to steer investors to the funds advised by the Adviser or its affiliates rather than funds managed by other companies, and (ii) that the funds advised by the Adviser or its affiliates, including the Fund, allegedly paid excessive commissions to brokers in return for their alleged efforts to steer investors to these funds. The complaint seeks, among other things, unspecified compensatory damages, rescissionary damages, fees and costs. Plaintiffs have filed a Motion for Leave to file a Supplemental Pleading that would, among other things, expand the allegations and alleged class. The defendants have moved to dismiss this action and otherwise intend to defend it vigorously. The Adviser and certain affiliates of the Adviser are also named as defendants in a derivative suit which additionally names as defendants certain individual Trustees of certain Van Kampen funds; the named investment companies, including the Fund, are listed as 30 VAN KAMPEN HIGH YIELD FUND NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 28, 2006 (UNAUDITED) continued nominal defendants. The complaint alleges that defendants caused the Van Kampen funds to pay economic incentives to a proprietary sales force to promote the sale of proprietary mutual funds. The complaint also alleges that the Van Kampen funds paid excessive commissions to Morgan Stanley and its affiliates in connection with the sales of the funds. The complaint seeks, among other things, the removal of the current Trustees of the funds, rescission of the management contracts for the funds, disgorgement of profits by Morgan Stanley and its affiliates and monetary damages. This complaint has been coordinated with the consolidated complaint described in the preceding paragraph. Defendants moved to dismiss the complaint and intend otherwise to vigorously defend it. Plaintiff sought leave to file a second amended derivative complaint that alleges that the Adviser permitted or recklessly disregarded market timing and late trading in its proprietary mutual funds in order to increase assets under management and fees. However, pursuant to an agreement between the parties, the plaintiff's proposed second amended derivative complaint was withdrawn and the allegations regarding market timing and late trading asserted therein were filed in a separate complaint and coordinated with other cases related to market timing that have been centralized in a federal court. The defendants moved to dismiss this matter, which motion was granted in part and denied in part. Defendants moved for reconsideration of those claims that were denied. Plaintiff subsequently dismissed the trustee defendants from the action, in exchange for the execution of a tolling agreement by the trustees permitting plaintiff to bring the same claims against the trustees at a later date should plaintiff deem necessary. While the defendants believe that they have meritorious defenses, the ultimate outcome of these matters is not presently determinable, and no provision has been made in the Fund's financial statements for the effect, if any, of these matters. 9. INDEMNIFICATIONS The Fund enters into contracts that contain a variety of indemnifications. The Fund's maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote. 31 VAN KAMPEN HIGH YIELD FUND BOARD OF TRUSTEES, OFFICERS AND IMPORTANT ADDRESSES BOARD OF TRUSTEES DAVID C. ARCH JERRY D. CHOATE ROD DAMMEYER LINDA HUTTON HEAGY R. CRAIG KENNEDY HOWARD J KERR JACK E. NELSON HUGO F. SONNENSCHEIN WAYNE W. WHALEN* - Chairman SUZANNE H. WOOLSEY OFFICERS RONALD E. ROBISON President and Principal Executive Officer AMY R. DOBERMAN Vice President J. DAVID GERMANY Vice President DENNIS SHEA Vice President STEFANIE V. CHANG Vice President and Secretary JOHN L. SULLIVAN Chief Compliance Officer PHILLIP G. GOFF Chief Financial Officer and Treasurer INVESTMENT ADVISER VAN KAMPEN ASSET MANAGEMENT 1221 Avenue of the Americas New York, New York 10020 DISTRIBUTOR VAN KAMPEN FUNDS INC. 1221 Avenue of the Americas New York, New York 10020 SHAREHOLDER SERVICING AGENT VAN KAMPEN INVESTOR SERVICES INC. P.O. Box 947 Jersey City, New Jersey 07303-0947 CUSTODIAN STATE STREET BANK AND TRUST COMPANY One Lincoln Street Boston, Massachusetts 02111 LEGAL COUNSEL SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP 333 West Wacker Drive Chicago, Illinois 60606 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 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. 32 Van Kampen High Yield Fund An Important Notice Concerning Our U.S. Privacy Policy We are required by federal law to provide you with a copy of our Privacy Policy annually. The following Policy applies to current and former individual clients of Van Kampen Investments Inc., Van Kampen Asset Management, Van Kampen Advisors Inc., Van Kampen Funds Inc., Van Kampen Investor Services Inc. and Van Kampen Exchange Corp., as well as current and former individual investors in Van Kampen mutual funds, unit investment trusts, and related companies. This Policy is not applicable to partnerships, corporations, trusts or other non-individual clients or account holders, nor is this Policy applicable to individuals who are either beneficiaries of a trust for which we serve as trustee or participants in an employee benefit plan administered or advised by us. This Policy is, however, applicable to individuals who select us to be a custodian of securities or assets in individual retirement accounts, 401(k) accounts, 529 Educational Savings Accounts, accounts subject to the Uniform Gifts to Minors Act, or similar accounts. Please note that we may amend this Policy at any time, and will inform you of any changes to this Policy as required by law. WE RESPECT YOUR PRIVACY We appreciate that you have provided us with your personal financial information. We strive to maintain the privacy of such information while we help you achieve your financial objectives. This Policy describes what non-public personal information we collect about you, why we collect it, and when we may share it with others. We hope this Policy will help you understand how we collect and share non-public personal information that we gather about you. Throughout this Policy, we refer to the non-public information that personally identifies you or your accounts as "personal information." 1. WHAT PERSONAL INFORMATION DO WE COLLECT ABOUT YOU? To serve you better and manage our business, it is important that we collect and maintain accurate information about you. We may obtain this information from applications and other forms you submit to us, from your dealings with us, from consumer reporting agencies, from our Web sites and from third parties and other sources. (continued on next page) Van Kampen High Yield Fund An Important Notice Concerning Our U.S. Privacy Policy continued For example: -- We may collect information such as your name, address, e-mail address, telephone/fax numbers, assets, income and investment objectives through applications and other forms you submit to us. -- We may obtain information about account balances, your use of account(s) and the types of products and services you prefer to receive from us through your dealings and transactions with us and other sources. -- We may obtain information about your creditworthiness and credit history from consumer reporting agencies. -- We may collect background information from and through third-party vendors to verify representations you have made and to comply with various regulatory requirements. -- If you interact with us through our public and private Web sites, we may collect information that you provide directly through online communications (such as an e-mail address). We may also collect information about your Internet service provider, your domain name, your computer's operating system and Web browser, your use of our Web sites and your product and service preferences, through the use of "cookies." "Cookies" recognize your computer each time you return to one of our sites, and help to improve our sites' content and personalize your experience on our sites by, for example, suggesting offerings that may interest you. Please consult the Terms of Use of these sites for more details on our use of cookies. 2. WHEN DO WE DISCLOSE PERSONAL INFORMATION WE COLLECT ABOUT YOU? To provide you with the products and services you request, to serve you better and to manage our business, we may disclose personal information we collect about you to our affiliated companies and to non-affiliated third parties as required or permitted by law. A. INFORMATION WE DISCLOSE TO OUR AFFILIATED COMPANIES. We do not disclose personal information that we collect about you to our affiliated companies except to enable them to provide services on our behalf or as otherwise required or permitted by law. B. INFORMATION WE DISCLOSE TO THIRD PARTIES. We do not disclose personal information that we collect about you to non-affiliated third parties except to enable them to provide services on our behalf, to perform joint marketing agreements with (continued on back) Van Kampen High Yield Fund An Important Notice Concerning Our U.S. Privacy Policy continued other financial institutions, or as otherwise required or permitted by law. For example, some instances where we may disclose information about you to non-affiliated third parties include: for servicing and processing transactions, to offer our own products and services, to protect against fraud, for institutional risk control, to respond to judicial process or to perform services on our behalf. When we share personal information with these companies, they are required to limit their use of personal information to the particular purpose for which it was shared and they are not allowed to share personal information with others except to fulfill that limited purpose. 3. HOW DO WE PROTECT THE SECURITY AND CONFIDENTIALITY OF PERSONAL INFORMATION WE COLLECT ABOUT YOU? We maintain physical, electronic and procedural security measures to help safeguard the personal information we collect about you. We have internal policies governing the proper handling of client information. Third parties that provide support or marketing services on our behalf may also receive personal information, and we require them to adhere to confidentiality standards with respect to such information. Van Kampen Funds Inc. 1 Parkview Plaza P.O. Box 5555 Oakbrook Terrace, IL 60181-5555 www.vankampen.com Copyright (C)2006 Van Kampen Funds Inc. All rights reserved. Member NASD/SIPC. 28, 128, 228 HYI SAR 4/06 (VAN KAMPEN INVESTMENTS SHINE LOGO) RN06-01005P-Y02/06 Item 2. Code of Ethics. Not applicable for semi-annual reports. Item 3. Audit Committee Financial Expert. Not applicable for semi-annual reports. Item 4. Principal Accountant Fees and Services. Not applicable for semi-annual reports. Item 5. Audit Committee of Listed Registrants. Not applicable for semi-annual reports. Item 6. Schedule of Investments. Please refer to Item #1. Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. Not applicable. Item 8. Portfolio Managers of Closed-End Management Investment Companies. Not applicable. Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. Not applicable. Item 10. Submission of Matters to a Vote of Security Holders. Not applicable. Item 11. Controls and Procedures (a) The Fund's principal executive officer and principal financial officer have concluded that the Fund's disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Fund in this Form N-CSRS was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, based upon such officers' evaluation of these controls and procedures as of a date within 90 days of the filing date of the report. (b) There were no changes in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 12. Exhibits. (1) Code of Ethics -- Not applicable for semi-annual reports. (2)(a) A certification for the Principal Executive Officer of the registrant is attached hereto as part of EX-99.CERT. (2)(b) A certification for the Principal Financial Officer of the registrant is attached hereto as part of EX-99.CERT. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Van Kampen High Yield Fund By: /s/ Ronald E. Robison ---------------------- Name: Ronald E. Robison Title: Principal Executive Officer Date: April 19, 2006 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Ronald E. Robison ---------------------- Name: Ronald E. Robison Title: Principal Executive Officer Date: April 19, 2006 By: /s/ Phillip G. Goff -------------------- Name: Phillip G. Goff Title: Principal Financial Officer Date: April 19, 2006 EX-99.CERT 2 c03207exv99wcert.txt CERTIFICATIONS I, Ronald E. Robison, certify that: 1. I have reviewed this report on Form N-CSRS of Van Kampen High Yield Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting. Date: April 19, 2006 /s/ Ronald E. Robison ---------------------- Principal Executive Officer I, Phillip G. Goff, certify that: 1. I have reviewed this report on Form N-CSRS of Van Kampen High Yield Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting. Date: April 19, 2006 /s/ Phillip G. Goff -------------------- Principal Financial Officer EX-99.906CERT 3 c03207exv99w906cert.txt CERTIFICATIONS Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 Name of Issuer: Van Kampen High Yield Fund In connection with the Report on Form N-CSRS (the "Report") of the above-named issuer for the period ended February 28, 2006 that is accompanied by this certification, the undersigned hereby certifies that: 1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Issuer. Date: April 19, 2006 /s/ Ronald E. Robison ---------------------- Ronald E. Robison Principal Executive Officer A signed original of this written statement required by Section 906 has been provided to Van Kampen High Yield Fund and will be retained by Van Kampen High Yield Fund and furnished to the Securities and Exchange Commission or its staff upon request. This written statement required by Section 906 is being furnished with this report, but not being filed as part of this Report. Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 Name of Issuer: Van Kampen High Yield Fund In connection with the Report on Form N-CSRS (the "Report") of the above-named issuer for the period ended February 28, 2006 that is accompanied by this certification, the undersigned hereby certifies that: 1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Issuer. Date: April 19, 2006 /s/ Phillip G. Goff -------------------- Phillip G. Goff Principal Financial Officer A signed original of this written statement required by Section 906 has been provided to Van Kampen High Yield Fund and will be retained by Van Kampen High Yield Fund and furnished to the Securities and Exchange Commission or its staff upon request. This written statement required by Section 906 is being furnished with this report, but not being filed as part of this Report. -----END PRIVACY-ENHANCED MESSAGE-----