-----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, KhrbQX5OAhKnqFFW/H+gBAklFj10ovoCLZGXMFwdPVY66H8PK2hv9lGAD7cZk2YL v5qvmfo2H74fDF3KU2UOmg== 0000950137-07-016206.txt : 20071030 0000950137-07-016206.hdr.sgml : 20071030 20071030145551 ACCESSION NUMBER: 0000950137-07-016206 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20070831 FILED AS OF DATE: 20071030 DATE AS OF CHANGE: 20071030 EFFECTIVENESS DATE: 20071030 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VAN KAMPEN STRATEGIC GROWTH FUND CENTRAL INDEX KEY: 0000005115 IRS NUMBER: 132625588 STATE OF INCORPORATION: DE FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-02424 FILM NUMBER: 071199131 BUSINESS ADDRESS: STREET 1: VAN KAMPEN INVESTMENTS INC. STREET 2: 522 FIFTH AVENUE CITY: NEW YORK STATE: NY ZIP: 10036 BUSINESS PHONE: 212-296-6963 MAIL ADDRESS: STREET 1: VAN KAMPEN INVESTMENTS INC. STREET 2: 522 FIFTH AVENUE CITY: NEW YORK STATE: NY ZIP: 10036 FORMER COMPANY: FORMER CONFORMED NAME: VAN KAMPEN EMERGING GROWTH FUND DATE OF NAME CHANGE: 19981002 FORMER COMPANY: FORMER CONFORMED NAME: VAN KAMPEN AMERICAN CAPITAL EMERGING GROWTH FUND/ DATE OF NAME CHANGE: 19970728 FORMER COMPANY: FORMER CONFORMED NAME: AMERICAN CAPITAL EMERGING GROWTH FUND INC DATE OF NAME CHANGE: 19920703 0000005115 S000002345 VAN KAMPEN EMERGING GROWTH FUND C000006155 Class A Shares ACEGX C000006156 Class B Shares ACEMX C000006157 Class C Shares ACEFX C000006158 Class I Shares ACEDX C000006159 Class R Shares ACEEX N-CSR 1 c18681nvcsr.txt CERTIFIED SHAREHOLDER REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-02424 Van Kampen Strategic Growth Fund (Exact name of registrant as specified in charter) 522 Fifth Avenue, New York, New York 10036 (Address of principal executive offices) (Zip code) Ronald Robison 522 Fifth Avenue, New York, New York 10036 (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: 8/31/07 Item 1. Report to Shareholders. The Fund's annual 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 Strategic Growth Fund performed during the annual 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 August 31, 2007. THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY A CLASS A, B, AND C SHARE OR CLASS I AND R SHARE PROSPECTUS FOR THE FUND BEING OFFERED. THE PROSPECTUSES CONTAIN INFORMATION ABOUT THE FUND, INCLUDING THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES. TO OBTAIN AN ADDITIONAL PROSPECTUS, CONTACT YOUR FINANCIAL ADVISOR OR DOWNLOAD ONE AT VANKAMPEN.COM. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE INVESTING. MARKET FORECASTS PROVIDED IN THIS REPORT MAY NOT NECESSARILY COME TO PASS. THERE IS NO ASSURANCE THAT A MUTUAL FUND WILL ACHIEVE ITS INVESTMENT OBJECTIVE. FUNDS ARE SUBJECT TO MARKET RISK, WHICH IS THE POSSIBILITY THAT THE MARKET VALUES OF SECURITIES OWNED BY THE FUND WILL DECLINE AND THAT THE VALUE OF FUND SHARES MAY THEREFORE BE LESS THAN WHAT YOU PAID FOR THEM. ACCORDINGLY, YOU CAN LOSE MONEY INVESTING IN THIS FUND.
--------------------------------------------------------------------------------------- NOT FDIC INSURED OFFER NO BANK GUARANTEE MAY LOSE VALUE --------------------------------------------------------------------------------------- NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY NOT A DEPOSIT ---------------------------------------------------------------------------------------
Performance Summary as of 8/31/07 PERFORMANCE OF A $10,000 INVESTMENT This chart compares your fund's performance to that of the Russell 1000(R) Growth Index from 8/31/97 through 8/31/07. Class A shares, adjusted for sales charges. (LINE GRAPH)
VAN KAMPEN STRATEGIC GROWTH FUND RUSSELL 1000(R) GROWTH INDEX -------------------------------- ---------------------------- 8/97 9425.00 10000.00 10210.00 10492.10 9564.00 10104.30 9425.00 10533.50 9619.00 10651.50 9504.00 10970.00 10540.00 11795.20 11150.00 12265.40 11275.00 12435.10 10775.00 12082.20 11729.00 12822.20 11369.00 12737.40 8/98 9219.00 10825.80 10224.00 11657.40 10285.00 12594.30 11112.00 13552.30 12960.00 14774.30 14216.00 15641.80 13234.00 14927.30 14864.00 15713.40 14931.00 15733.50 14318.00 15250.00 15698.00 16318.20 15547.00 15799.60 8/99 16142.00 16057.70 16365.00 15720.40 18180.00 16907.70 21032.00 17819.80 26401.00 19673.30 26359.00 18750.70 34838.00 19667.50 33209.00 21075.00 29139.00 20072.10 26087.00 19061.50 29357.00 20506.10 28692.00 19651.10 8/00 32995.00 21430.50 31345.00 19403.20 28372.00 18485.30 22479.00 15760.40 23401.00 15261.60 22950.00 16316.00 19629.00 13546.00 17926.00 12072.00 19204.00 13598.80 18805.00 13398.60 18231.00 13088.30 17348.00 12761.20 8/01 16095.00 11717.70 14392.00 10547.80 14686.00 11101.20 15644.00 12167.60 15775.00 12144.70 15406.00 11930.20 14522.00 11435.10 14925.00 11830.60 14388.00 10865.00 13915.00 10602.20 12811.00 9621.43 11607.00 9092.49 8/02 11540.00 9119.67 10843.00 8173.70 11231.00 8923.49 11425.00 9408.16 10534.00 8758.28 10418.00 8545.77 10415.00 8506.52 10594.00 8664.82 11209.00 9305.60 11980.00 9769.97 11980.00 9904.50 12312.00 10151.00 8/03 12703.00 10403.50 12263.00 10292.10 13337.00 10870.20 13482.00 10983.80 13467.00 11363.80 13661.00 11595.90 13769.00 11669.70 13624.00 11453.00 13180.00 11319.90 13475.00 11531.10 13788.00 11674.90 12867.00 11015.00 8/04 12726.00 10960.70 13095.00 11065.00 13311.00 11237.50 14027.00 11624.00 14411.00 12079.70 13889.00 11676.90 14168.00 11801.20 13900.00 11586.10 13397.00 11365.50 14172.00 11915.40 14302.00 11871.50 14921.00 12451.70 8/05 14850.00 12291.30 15204.00 12347.90 14783.00 12227.90 15454.00 12755.50 15521.00 12715.50 16449.00 12938.70 15961.00 12918.20 16177.00 13108.90 16382.00 13091.10 15298.00 12647.40 15372.00 12597.40 14746.00 12357.50 8/06 14690.00 12743.10 15022.00 13093.20 15480.00 13553.50 15935.00 13822.50 15928.00 13869.30 16349.00 14225.80 15916.00 13958.40 16185.00 14034.10 16703.00 14694.80 17381.00 15223.50 17225.00 14996.20 17038.00 14763.70 8/07 17366.00 14999.00
A SHARES B SHARES C SHARES I SHARES R SHARES since 10/02/70 since 4/20/92 since 7/06/93 since 10/16/00 since 10/01/02 - ------------------------------------------------------------------------------------------------------------------ AVERAGE W/MAX W/MAX W/MAX ANNUAL W/O 5.75% W/O 5.00% W/O 1.00% W/O W/O TOTAL SALES SALES SALES SALES SALES SALES SALES SALES RETURNS CHARGES CHARGES CHARGES CHARGES CHARGES CHARGES CHARGES CHARGES Since Inception 14.46% 14.28% 10.77% 10.77% 9.33% 9.33% -7.30% 9.15% 10-year 6.30 5.67 5.65 5.65 5.50 5.50 -- -- 5-year 8.52 7.24 7.70 7.47 7.71 7.71 8.79 -- 1-year 18.22 11.43 17.35 12.35 17.36 16.36 18.53 17.84 - ------------------------------------------------------------------------------------------------------------------
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE RESULTS, AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE FIGURES SHOWN. FOR THE MOST RECENT 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. Average annual total return with sales charges includes payment of the maximum sales charge of 5.75 percent for Class A shares, a contingent deferred sales charge of 5.00 percent for Class B shares (in year one 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 10-year returns for Class B shares reflect the conversion of Class B shares into Class A shares eight 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. Class I Shares are offered without any sales charges on purchases or sales and do not include combined Rule 12b-1 fees and service fees. Class I Shares are available for purchase exclusively by investors through (i) tax-exempt retirement plans with assets of at least one million dollars (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 one million dollars and (iii) institutional clients with assets of at least one million dollars. Class R Shares are offered without any sales charges on purchases or sales. The combined Rule 12b-1 fees and service fees for Class R Shares is up to 0.50 percent. Class R Shares are available for purchase exclusively by investors through certain tax-exempt retirement plans (including 401(k) plans, 457 plans, employer sponsored 403(b) plans, profit sharing and money purchase pension plans, defined benefit plans and non-qualified deferred compensation plans) held in plan level or omnibus accounts. Figures shown above assume reinvestment of all dividends and capital gains. 1 The Russell 1000 Growth Index measures the performance of those Russell 1000 companies (the 1000 largest U.S. companies) with higher price-to-book ratios and higher forecasted growth values. The index does not include any expenses, fees or sales charges, which would lower performance. The index is unmanaged and should not be considered an investment. 2 Fund Report FOR THE 12-MONTH PERIOD ENDED AUGUST 31, 2007 MARKET CONDITIONS Despite periods of significant volatility, the U.S. equity market produced strong performance returns overall for the 12-months ended August 31, 2007. The period began with the equity market still in a positive mode following the Federal Open Market Committee's (the "Fed") decision to halt its monetary tightening policy and keep the target federal fund's rate at 5.25%, where it remained through the end of the reporting period. Around this time, oil prices began to recede from their record high level, and the subsequent relief at the pump sparked consumer spending, and in particular back-to-school retail sales, in the third quarter 2006. However, during the forth quarter, both investors' and consumers' enthusiasm diminished somewhat in the face of several unsettling reports and signals. Among these signs were the continued softening of the domestic housing market, the mounting evidence of an economic slowdown per revised reported second and third quarter gross domestic product (GDP) growth data, and the uncertainty of the market's direction following the mid-term elections and the Democrats' new majority in both the House of Representatives and the Senate. As a result, holiday retail sales and market activity through year-end was somewhat inconsistent, albeit generally positive. At the start of the calendar year, the equity market found its footing once again, and stocks experienced a rally that lasted well into February. Following a brief period of anxiety in the equity market caused by the market sell-off in China on February 27(th) and ongoing tensions in the U.S. housing markets, stocks bounced back and preformed strongly throughout the next several months. In the second half of the reporting period, concerns about the housing market, particularly the subprime mortgage sector (which lends out money to less credit-worthy borrowers), intensified as the pace of foreclosures increased over the spring months. The bankruptcies at a number of mortgage lenders contributed to the demise of several hedge funds invested in subprime-related securities. Subsequently, credit began tightening across the board, removing much of the low-cost liquidity that had helped support the merger and acquisition (M&A) boom and stocks' robust gains for the past several years. Although stocks generally continued to advance, these developments roiled the domestic equity market and investors remained uncertain about the direction for the remainder of the reporting period. 3 PERFORMANCE ANALYSIS Class A, I and R shares of the Van Kampen Strategic Growth Fund outperformed the Russell 1000(R) Growth Index and Class B and C shares underperformed the Russell 1000 Growth Index for the 12 months ended August 31, 2007, assuming no deduction of applicable sales charges. TOTAL RETURNS FOR THE 12-MONTH PERIOD ENDED AUGUST 31, 2007
- ----------------------------------------------------------------------------- RUSSELL 1000(R) CLASS A CLASS B CLASS C CLASS I CLASS R GROWTH INDEX 18.22%. 17.35% 17.36% 18.53% 17.84% 17.70% - -----------------------------------------------------------------------------
The performance for the five 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 definition. The Van Kampen Strategic Growth Fund's overall outperformance versus the Russell 1000 Growth Index was due to the selection of mostly large capitalization securities that possessed strong fundamental characteristics with an aggressive growth tilt. This positioning served as an effective buffer against the volatile conditions of the domestic equity market during the last months of the reporting period. On a sector level, the sectors that contributed most significantly to the Fund's outperformance during the period were industrial conglomerates, heavy electrical equipment and telecommunication services. Stock selection within the industrial sector greatly added to relative returns. In particular, the Fund's focus in the aerospace segment significantly buoyed performance, while a reduction of holdings in the defense segment had a positive effect on total returns. In the heavy electrical equipment sector, investment in a company not held in the Russell Index was advantageous to performance, and the Fund's other holdings benefited from the strong demand for machinery and heavy equipment caused by ongoing robust international commercial growth. In the telecommunication services sector, selection of wireless telecommunication companies with a concentration on Latin American countries further helped to enhance relative returns. Although many sectors contributed positively to the Fund during the period, there were several sectors that had a negative impact on overall performance relative to the Russell 1000 Growth Index. Among these was information technology, where despite the recent strong returns offered by many of the Fund's holdings, a lack of exposure to several key hardware and system software companies along with a sector underweight hurt relative performance. Stock selection in the consumer staples sector was also detrimental to overall returns, even though the Fund's underweight position helped to somewhat mitigate the damaging effects of the holdings. Within the consumer discretionary sector, a 4 lack of exposure to an internet retailer and unfavorable security selection diminished relative returns. 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. After careful consideration, the Board of Trustees has approved changes to the funds' portfolio management team. Effective September 20, 2007, the U.S. Growth team will assume day-to-day management responsibilities for Van Kampen's Strategic Growth Fund. Members of the team responsible for the day-to-day portfolio management include: - - Dennis Lynch, managing director, joined the firm in 1998 and contributes more than 13 years of investment industry experience - - David Cohen, managing director, joined the firm in 1993 and has 19 years of experience - - Sam Chainani, executive director, joined the firm in 1996 and leverages 11 years of financial industry experience - - Alexander Norton, executive director, joined the firm in 2000 and brings 12 years of investment experience to the team - - Jason Yeung, executive director, joined the firm in 2002 and has ten years of investment experience 5
TOP 10 HOLDINGS AS OF 8/31/07 Google, Inc., Class A 2.7% Apple, Inc. 2.6 Hewlett-Packard Co. 2.5 Precision Castparts Corp. 2.4 America Movil SA de CV, Ser L 2.4 Roche Holdings AG 2.3 Cisco Systems, Inc. 2.1 Intel Corp. 2.0 Schlumberger Ltd. 2.0 ABB Ltd. 2.0 SUMMARY OF INVESTMENTS BY INDUSTRY CLASSIFICATION AS OF 8/31/07 Communications Equipment 8.6% Computer Hardware 7.5 Pharmaceuticals 7.2 Aerospace & Defense 5.6 Semiconductors 4.2 Biotechnology 4.0 Oil & Gas Equipment & Services 3.9 Internet Software & Services 3.8 Wireless Telecommunication Services 3.7 Health Care Equipment 3.1 Construction & Farm Machinery & Heavy Trucks 2.5 Systems Software 2.4 Integrated Oil & Gas 2.3 Semiconductor Equipment 2.2 Investment Banking & Brokerage 2.1 Apparel, Accessories & Luxury Goods 2.0 Heavy Electrical Equipment 2.0 Restaurants 2.0 Fertilizers & Agricultural Chemicals 1.8 Computer Storage & Peripherals 1.7 Industrial Conglomerates 1.7 IT Consulting & Other Services 1.6 Soft Drinks 1.5 Household Products 1.5 Drug Retail 1.4 Internet Retail 1.3 Apparel Retail 1.3 Integrated Telecommunication Services 1.3 Hypermarkets & Super Centers 1.2 Footwear 1.2 Other Diversified Financial Services 1.2 Specialty Stores 1.0 Diversified Metals & Mining 1.0 Auto Parts & Equipment 0.9 Computer & Electronics Retail 0.9 Railroads 0.8 Oil & Gas Exploration & Production 0.8 Specialized Finance 0.8 Application Software 0.7 Oil & Gas Refining & Marketing 0.5
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6
SUMMARY OF INVESTMENTS BY INDUSTRY CLASSIFICATION AS OF 8/31/07 (continued from previous page) Air Freight & Logistics 0.5 Multi-Line Insurance 0.5 Asset Management & Custody Banks 0.5 Life & Health Insurance 0.5 Real Estate Management & Development 0.5 Electric Utilities 0.5 Electronic Manufacturing Services 0.5 Specialized Consumer Services 0.5 ----- Total Long-Term Investments 99.2 Total Repurchase Agreements 2.0 Liabilities in Excess of Other Assets (1.2) ----- 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. All percentages are as a percentage of net assets. Van Kampen is a wholly owned subsidiary of a global securities firm which is 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. 7 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. The semiannual reports and the annual reports are filed electronically with the Securities and Exchange Commission (SEC) on Form N-CSRS and Form N-CSR, respectively. 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 email 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. 8 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. 9 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 charges on redemptions of Class B and Class C Shares; and redemption fees; 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 costs (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 3/1/07 - 8/31/07. 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 or redemption fees. 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* ------------------------------------------------ 3/1/07 8/31/07 3/1/07-8/31/07 Class A Actual................................ $1,000.00 $1,091.10 $5.80 Hypothetical................................ 1,000.00 1,019.66 5.60 (5% annual return before expenses) Class B Actual................................ 1,000.00 1,087.03 9.78 Hypothetical................................ 1,000.00 1,015.83 9.45 (5% annual return before expenses) Class C Actual................................ 1,000.00 1,087.00 9.78 Hypothetical................................ 1,000.00 1,015.83 9.45 (5% annual return before expenses) Class I Actual................................ 1,000.00 1,092.42 4.48 Hypothetical................................ 1,000.00 1,020.92 4.33 (5% annual return before expenses) Class R Actual................................ 1,000.00 1,089.68 7.06 Hypothetical................................ 1,000.00 1,018.45 6.82 (5% annual return before expenses)
* Expenses are equal to the Fund's annualized expense ratio of 1.10%, 1.86%, 1.86%, 0.85% and 1.34% for Class A, B, C, I and R Shares, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Assumes all dividends and distributions were reinvested. 10 Investment Advisory Agreement Approval Both the Investment Company Act of 1940 and the terms of the Fund's investment advisory agreement require that the investment advisory agreement between the Fund and its investment adviser be approved annually both by a majority of the Board of Trustees and by a majority of the independent trustees voting separately. At meetings held on April 17, 2007 and May 30, 2007, the Board of Trustees, and the independent trustees voting separately, considered and ultimately determined that the terms of the investment advisory agreement are fair and reasonable and approved the continuance of the investment advisory agreement as being in the best interests of the Fund and its shareholders. In making its determination, the Board of Trustees considered materials that were specifically prepared by the investment adviser at the request of the Board and Fund counsel, and by an independent provider of investment company data contracted to assist the Board, relating to the investment advisory agreement review process. The Board also considered information received periodically about the portfolio, performance, the investment strategy, portfolio management team and fees and expenses of the Fund. The Board of Trustees considered the investment advisory agreement over a period of several months and the trustees held sessions both with the investment adviser and separate from the investment adviser in reviewing and considering the investment advisory agreement. In approving the investment advisory agreement, the Board of Trustees considered, among other things, the nature, extent and quality of the services provided by the investment adviser, the performance, fees and expenses of the Fund compared to other similar funds and other products, the investment adviser's expenses in providing the services and the profitability of the investment adviser and its affiliated companies. The Board of Trustees considered the extent to which any economies of scale experienced by the investment adviser are shared with the Fund's shareholders, and the propriety of existing and alternative breakpoints in the Fund's investment advisory fee schedule. The Board of Trustees considered comparative advisory fees of the Fund and other investment companies and/or other products at different asset levels, and considered the trends in the industry versus historical and projected assets of the Fund. The Board of Trustees also reviewed the benefit to the investment adviser of receiving research paid for by Fund assets and the propriety of such arrangements. The Board of Trustees evaluated other benefits the investment adviser and its affiliates derive from their relationship with the Fund. The Board of Trustees reviewed information about the foregoing factors and considered changes, if any, in such information since its previous approval. The Board of Trustees discussed the financial strength of the investment adviser and its affiliated companies and the capability of the personnel of the investment adviser, and specifically the strength and background of its portfolio management personnel. The Board of Trustees reviewed the statutory and 11 regulatory requirements for approval and disclosure of investment advisory agreements. The Board of Trustees, including the independent trustees, evaluated all of the foregoing and does not believe any single factor or group of factors control or dominate the review process, and, after considering all factors together, has determined, in the exercise of its business judgment, that approval of the investment advisory agreement is in the best interests of the Fund and its shareholders. The following summary provides more detail on certain matters considered but does not detail all matters considered. Nature, Extent and Quality of the Services Provided. On a regular basis, the Board of Trustees considers the roles and responsibilities of the investment adviser as a whole and for those specific portfolio management, support and trading functions servicing the Fund. The trustees discuss with the investment adviser the resources available and used in managing the Fund. The Fund discloses information about its portfolio management team members and their experience in its prospectus. The trustees also discuss certain other services which are provided on a cost-reimbursement basis by the investment adviser or its affiliates to the Van Kampen funds including certain accounting, administrative and legal services. The Board has determined that the nature, extent and quality of the services provided by the investment adviser support its decision to approve the investment advisory agreement. Performance, Fees and Expenses of the Fund. On a regular basis, the Board of Trustees reviews the performance, fees and expenses of the Fund compared to its peers and to appropriate benchmarks. In addition, the Board spends more focused time on the performance of the Fund and other funds in the Van Kampen complex, paying specific attention to underperforming funds. The trustees discuss with the investment adviser the performance goals and the actual results achieved in managing the Fund. When considering a fund's performance, the trustees and the investment adviser place emphasis on trends and longer-term returns (focusing on one-year, three-year and five-year performance with special attention to three-year performance) and, when a fund's weighted performance is under the fund's benchmark, they discuss the causes and where necessary seek to make specific changes to investment strategy or investment personnel. The Fund discloses more information about its performance elsewhere in this report and in the Fund's prospectus. The trustees discuss with the investment adviser the level of advisory fees for this Fund relative to comparable funds and other products advised by the adviser and others in the marketplace. The trustees review not only the advisory fees but other fees and expenses (whether paid to the adviser, its affiliates or others) and the Fund's overall expense ratio. The Fund discloses more information about its fees and expenses in its prospectus. The Board has determined that the performance, fees and expenses of the Fund support its decision to approve the investment advisory agreement. Investment Adviser's Expenses in Providing the Service and Profitability. At least annually, the trustees review the investment adviser's expenses in providing 12 services to the Fund and other funds advised by the investment adviser and the profitability of the investment adviser. These profitability reports are put together by the investment adviser with the oversight of the Board. The trustees discuss with the investment adviser its revenues and expenses, including among other things, revenues for advisory services, portfolio management-related expenses, revenue sharing arrangement costs and allocated expenses both on an aggregate basis and per fund. The Board has determined that the analysis of the investment adviser's expenses and profitability support its decision to approve the investment advisory agreement. Economies of Scale. On a regular basis, the Board of Trustees considers the size and growth prospects of the Fund and how that relates to the Fund's expense ratio and particularly the Fund's advisory fee rate. In conjunction with its review of the investment adviser's profitability, the trustees discuss with the investment adviser how more (or less) assets can affect the efficiency or effectiveness of managing the Fund's portfolio and whether the advisory fee level is appropriate relative to current and projected asset levels and/or whether the advisory fee structure reflects economies of scale as asset levels change. The Board has determined that its review of the actual and potential economies of scale of the Fund support its decision to approve the investment advisory agreement. Other Benefits of the Relationship. On a regular basis, the Board of Trustees considers other benefits to the investment adviser and its affiliates derived from its relationship with the Fund and other funds advised by the investment adviser. These benefits include, among other things, fees for transfer agency services provided to the funds, in certain cases research received by the adviser generated from commission dollars spent on funds' portfolio trading, and in certain cases distribution or service related fees related to funds' sales. The trustees review with the investment adviser each of these arrangements and the reasonableness of its costs relative to the services performed. The Board has determined that the other benefits received by the investment adviser or its affiliates support its decision to approve the investment advisory agreement. 13 VAN KAMPEN STRATEGIC GROWTH FUND PORTFOLIO OF INVESTMENTS -- AUGUST 31, 2007
NUMBER OF DESCRIPTION SHARES VALUE - ---------------------------------------------------------------------------------------- COMMON STOCKS 99.2% AEROSPACE & DEFENSE 5.6% Alliant Techsystems, Inc. (a)............................... 250,000 $ 26,327,500 BE Aerospace, Inc. (a)...................................... 500,000 19,485,000 Goodrich Corp. ............................................. 450,000 28,422,000 Honeywell International, Inc. .............................. 800,000 44,920,000 Precision Castparts Corp. .................................. 700,000 91,217,000 -------------- 210,371,500 -------------- AIR FREIGHT & LOGISTICS 0.5% C.H. Robinson Worldwide, Inc. .............................. 400,000 19,616,000 -------------- APPAREL, ACCESSORIES & LUXURY GOODS 2.0% Coach, Inc. (a)............................................. 600,000 26,718,000 Phillips-Van Heusen Corp. .................................. 550,000 32,026,500 Under Armour, Inc., Class A (a)............................. 250,000 16,252,500 -------------- 74,997,000 -------------- APPAREL RETAIL 1.3% Guess?, Inc. ............................................... 400,000 21,200,000 TJX Cos., Inc. ............................................. 900,000 27,441,000 -------------- 48,641,000 -------------- APPLICATION SOFTWARE 0.7% NAVTEQ Corp. (a)............................................ 450,000 28,350,000 -------------- ASSET MANAGEMENT & CUSTODY BANKS 0.5% Janus Capital Group, Inc. .................................. 700,000 18,613,000 -------------- AUTO PARTS & EQUIPMENT 0.9% Johnson Controls, Inc. ..................................... 300,000 33,930,000 -------------- BIOTECHNOLOGY 4.0% Celgene Corp. (a)........................................... 1,000,000 64,210,000 Gilead Sciences, Inc. (a)................................... 1,600,000 58,192,000 Vertex Pharmaceuticals, Inc. (a)............................ 700,000 27,272,000 -------------- 149,674,000 -------------- COMMUNICATIONS EQUIPMENT 8.6% Cisco Systems, Inc. (a)..................................... 2,450,000 78,204,000 CommScope, Inc. (a)......................................... 300,000 16,980,000 Corning, Inc. .............................................. 1,500,000 35,055,000 Juniper Networks, Inc. (a).................................. 1,000,000 32,920,000 Nokia Oyj--ADR (Finland).................................... 1,800,000 59,184,000 QUALCOMM, Inc. ............................................. 700,000 27,923,000 Research In Motion Ltd. (Canada) (a)........................ 600,000 51,246,000 Riverbed Technology, Inc. (a)............................... 500,000 22,200,000 -------------- 323,712,000 -------------- COMPUTER & ELECTRONICS RETAIL 0.9% GameStop Corp., Class A (a)................................. 650,000 32,591,000 --------------
14 See Notes to Financial Statements VAN KAMPEN STRATEGIC GROWTH FUND PORTFOLIO OF INVESTMENTS -- AUGUST 31, 2007 continued
NUMBER OF DESCRIPTION SHARES VALUE - ---------------------------------------------------------------------------------------- COMPUTER HARDWARE 7.5% Apple, Inc. (a)............................................. 700,000 $ 96,936,000 Dell, Inc. (a).............................................. 1,400,000 39,550,000 Hewlett-Packard Co. ........................................ 1,900,000 93,765,000 IBM Corp. .................................................. 450,000 52,510,500 -------------- 282,761,500 -------------- COMPUTER STORAGE & PERIPHERALS 1.7% EMC Corp. (a)............................................... 1,600,000 31,456,000 SanDisk Corp. (a)........................................... 600,000 33,636,000 -------------- 65,092,000 -------------- CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS 2.5% Cummins, Inc. .............................................. 200,000 23,684,000 Deere & Co. ................................................ 350,000 47,621,000 Manitowoc Co., Inc. ........................................ 300,000 23,847,000 -------------- 95,152,000 -------------- DIVERSIFIED METALS & MINING 1.0% Southern Copper Corp. ...................................... 350,000 36,837,500 -------------- DRUG RETAIL 1.4% CVS Caremark Corp. ......................................... 1,350,000 51,057,000 -------------- ELECTRIC UTILITIES 0.5% Exelon Corp. ............................................... 250,000 17,667,500 -------------- ELECTRONIC MANUFACTURING SERVICES 0.5% Trimble Navigation Ltd. (a)................................. 500,000 17,655,000 -------------- FERTILIZERS & AGRICULTURAL CHEMICALS 1.8% Monsanto Co. ............................................... 1,000,000 69,740,000 -------------- FOOTWEAR 1.2% Crocs, Inc. (a)............................................. 450,000 26,568,000 NIKE, Inc., Class B......................................... 350,000 19,719,000 -------------- 46,287,000 -------------- HEALTH CARE EQUIPMENT 3.1% Baxter International, Inc. ................................. 1,250,000 68,450,000 Hologic, Inc. (a)........................................... 900,000 47,835,000 -------------- 116,285,000 -------------- HEAVY ELECTRICAL EQUIPMENT 2.0% ABB Ltd.--ADR (Switzerland)................................. 3,000,000 73,980,000 -------------- HOUSEHOLD PRODUCTS 1.5% Energizer Holdings, Inc. (a)................................ 200,000 21,186,000 Procter & Gamble Co. ....................................... 550,000 35,920,500 -------------- 57,106,500 -------------- HYPERMARKETS & SUPER CENTERS 1.2% Costco Wholesale Corp. ..................................... 750,000 46,312,500 --------------
See Notes to Financial Statements 15 VAN KAMPEN STRATEGIC GROWTH FUND PORTFOLIO OF INVESTMENTS -- AUGUST 31, 2007 continued
NUMBER OF DESCRIPTION SHARES VALUE - ---------------------------------------------------------------------------------------- INDUSTRIAL CONGLOMERATES 1.7% 3M Co. ..................................................... 450,000 $ 40,945,500 McDermott International, Inc. (Panama) (a).................. 250,000 23,997,500 -------------- 64,943,000 -------------- INTEGRATED OIL & GAS 2.3% Exxon Mobil Corp. .......................................... 700,000 60,011,000 Occidental Petroleum Corp. ................................. 500,000 28,345,000 -------------- 88,356,000 -------------- INTEGRATED TELECOMMUNICATION SERVICES 1.3% AT&T, Inc. ................................................. 1,200,000 47,844,000 -------------- INTERNET RETAIL 1.3% Amazon.com, Inc. (a)........................................ 350,000 27,968,500 Priceline.com, Inc. (a)..................................... 250,000 20,745,000 -------------- 48,713,500 -------------- INTERNET SOFTWARE & SERVICES 3.8% Baidu.com, Inc.--ADR (Cayman Islands) (a)................... 100,000 20,820,000 Google, Inc., Class A (a)................................... 200,000 103,050,000 VeriSign, Inc. (a).......................................... 600,000 19,320,000 -------------- 143,190,000 -------------- INVESTMENT BANKING & BROKERAGE 2.1% Charles Schwab Corp. ....................................... 2,750,000 54,450,000 Goldman Sachs Group, Inc. .................................. 150,000 26,401,500 -------------- 80,851,500 -------------- IT CONSULTING & OTHER SERVICES 1.6% Accenture Ltd., Class A (Bermuda)........................... 1,500,000 61,815,000 -------------- LIFE & HEALTH INSURANCE 0.5% Prudential Financial, Inc. ................................. 200,000 17,956,000 -------------- MULTI-LINE INSURANCE 0.5% Loews Corp. ................................................ 400,000 18,804,000 -------------- OIL & GAS EQUIPMENT & SERVICES 3.9% Cameron International Corp. (a)............................. 550,000 44,973,500 National-Oilwell Varco, Inc. (a)............................ 200,000 25,600,000 Schlumberger Ltd. (Netherlands Antilles).................... 800,000 77,200,000 -------------- 147,773,500 -------------- OIL & GAS EXPLORATION & PRODUCTION 0.8% Devon Energy Corp. ......................................... 400,000 30,124,000 -------------- OIL & GAS REFINING & MARKETING 0.5% Valero Energy Corp. ........................................ 300,000 20,553,000 --------------
16 See Notes to Financial Statements VAN KAMPEN STRATEGIC GROWTH FUND PORTFOLIO OF INVESTMENTS -- AUGUST 31, 2007 continued
NUMBER OF DESCRIPTION SHARES VALUE - ---------------------------------------------------------------------------------------- OTHER DIVERSIFIED FINANCIAL SERVICES 1.2% Bank of America Corp. ...................................... 350,000 $ 17,738,000 JPMorgan Chase & Co. ....................................... 600,000 26,712,000 -------------- 44,450,000 -------------- PHARMACEUTICALS 7.2% Abbott Laboratories......................................... 1,050,000 54,505,500 Roche Holdings AG--ADR (Switzerland)........................ 1,000,000 86,898,900 Schering-Plough Corp. ...................................... 2,000,000 60,040,000 Shire PLC--ADR (United Kingdom)............................. 900,000 70,866,000 -------------- 272,310,400 -------------- RAILROADS 0.8% Canadian National Railway Co. (Canada)...................... 600,000 31,590,000 -------------- REAL ESTATE MANAGEMENT & DEVELOPMENT 0.5% CB Richard Ellis Group, Inc., Class A (a)................... 600,000 17,712,000 -------------- RESTAURANTS 2.0% McDonald's Corp. ........................................... 1,500,000 73,875,000 -------------- SEMICONDUCTOR EQUIPMENT 2.2% KLA-Tencor Corp. ........................................... 550,000 31,608,500 MEMC Electronic Materials, Inc. (a)......................... 500,000 30,710,000 Varian Semiconductor Equipment Associates, Inc. (a)......... 350,000 19,470,500 -------------- 81,789,000 -------------- SEMICONDUCTORS 4.2% Altera Corp. ............................................... 850,000 20,238,500 Intel Corp. ................................................ 3,000,000 77,250,000 Intersil Corp., Class A..................................... 600,000 19,992,000 Texas Instruments, Inc. .................................... 1,200,000 41,088,000 -------------- 158,568,500 -------------- SOFT DRINKS 1.5% PepsiCo, Inc. .............................................. 850,000 57,825,500 -------------- SPECIALIZED CONSUMER SERVICES 0.5% Sotheby's................................................... 400,000 17,312,000 -------------- SPECIALIZED FINANCE 0.8% IntercontinentalExchange, Inc. (a).......................... 200,000 29,174,000 -------------- SPECIALTY STORES 1.0% Dick's Sporting Goods, Inc. (a)............................. 214,100 13,895,090 Tiffany & Co. .............................................. 500,000 25,665,000 -------------- 39,560,090 --------------
See Notes to Financial Statements 17 VAN KAMPEN STRATEGIC GROWTH FUND PORTFOLIO OF INVESTMENTS -- AUGUST 31, 2007 continued
NUMBER OF DESCRIPTION SHARES VALUE - ---------------------------------------------------------------------------------------- SYSTEMS SOFTWARE 2.4% Microsoft Corp. ............................................ 1,500,000 $ 43,095,000 Oracle Corp. (a)............................................ 2,000,000 40,560,000 VMware, Inc., Class A (a)................................... 103,700 7,143,893 -------------- 90,798,893 -------------- WIRELESS TELECOMMUNICATION SERVICES 3.7% America Movil SA de CV, Ser L--ADR (Mexico)................. 1,500,000 90,690,000 Vimpel-Communications--ADR (Russia)......................... 2,000,000 48,800,000 -------------- 139,490,000 -------------- TOTAL LONG-TERM INVESTMENTS 99.2% (Cost $3,071,684,613)................................................ 3,741,807,883 -------------- REPURCHASE AGREEMENTS 2.0% Banc of America Securities ($25,033,238 par collateralized by U.S. Government obligations in a pooled cash account, interest rate of 5.30%, dated 08/31/07, to be sold on 09/04/07 at $25,047,980)........ 25,033,238 Citigroup Global Markets, Inc. ($22,251,767 par collateralized by U.S. Government obligations in a pooled cash account, interest rate of 5.25%, dated 08/31/07, to be sold on 09/04/07 at $22,264,747).......... 22,251,767 State Street Bank & Trust Co. ($27,025,995 par collateralized by U.S. Government obligations in a pooled cash account, interest rate of 4.83%, dated 08/31/07, to be sold on 09/04/07 at $27,040,499)........ 27,025,995 -------------- TOTAL REPURCHASE AGREEMENTS (Cost $74,311,000)................................................... 74,311,000 -------------- TOTAL INVESTMENTS 101.2% (Cost $3,145,995,613)................................................ 3,816,118,883 LIABILITIES IN EXCESS OF OTHER ASSETS (1.2%).......................... (44,459,844) -------------- NET ASSETS 100.0%..................................................... $3,771,659,039 ==============
Percentages are calculated as a percentage of net assets. (a) Non-income producing security as this stock currently does not declare income dividends. ADR--American Depositary Receipt 18 See Notes to Financial Statements VAN KAMPEN STRATEGIC GROWTH FUND FINANCIAL STATEMENTS Statement of Assets and Liabilities August 31, 2007 ASSETS: Total Investments (Cost $3,145,995,613)..................... $ 3,816,118,883 Cash........................................................ 320 Receivables: Investments Sold.......................................... 39,833,093 Dividends................................................. 2,281,250 Fund Shares Sold.......................................... 689,193 Interest.................................................. 10,556 Other....................................................... 633,216 --------------- Total Assets............................................ 3,859,566,511 --------------- LIABILITIES: Payables: Investments Purchased..................................... 72,209,894 Fund Shares Repurchased................................... 7,690,434 Distributor and Affiliates................................ 3,627,192 Investment Advisory Fee................................... 1,419,138 Trustees' Deferred Compensation and Retirement Plans........ 729,403 Accrued Expenses............................................ 2,231,411 --------------- Total Liabilities....................................... 87,907,472 --------------- NET ASSETS.................................................. $ 3,771,659,039 =============== NET ASSETS CONSIST OF: Capital (Par value of $0.01 per share with an unlimited number of shares authorized).............................. $ 8,109,245,832 Net Unrealized Appreciation................................. 670,123,270 Accumulated Net Investment Loss............................. (671,376) Accumulated Net Realized Loss............................... (5,007,038,687) --------------- NET ASSETS.................................................. $ 3,771,659,039 =============== MAXIMUM OFFERING PRICE PER SHARE: Class A Shares: Net asset value and redemption price per share (Based on net assets of $2,546,740,770 and 54,660,272 shares of beneficial interest issued and outstanding)............. $ 46.59 Maximum sales charge (5.75%* of offering price)......... 2.84 --------------- Maximum offering price to public........................ $ 49.43 =============== Class B Shares: Net asset value and offering price per share (Based on net assets of $982,228,027 and 25,045,922 shares of beneficial interest issued and outstanding)............. $ 39.22 =============== Class C Shares: Net asset value and offering price per share (Based on net assets of $190,230,926 and 4,728,598 shares of beneficial interest issued and outstanding)............. $ 40.23 =============== Class I Shares: Net asset value and offering price per share (Based on net assets of $50,006,036 and 1,055,043 shares of beneficial interest issued and outstanding)............. $ 47.40 =============== Class R Shares: Net asset value and offering price per share (Based on net assets of $2,453,280 and 53,276 shares of beneficial interest issued and outstanding)........................ $ 46.05 ===============
* On sales of $50,000 or more, the sales charge will be reduced. See Notes to Financial Statements 19 VAN KAMPEN STRATEGIC GROWTH FUND FINANCIAL STATEMENTS continued Statement of Operations For the Year Ended August 31, 2007 INVESTMENT INCOME: Dividends (Net of foreign withholding taxes of $515,097).... $ 34,043,468 Interest.................................................... 6,607,546 ------------ Total Income.............................................. 40,651,014 ------------ EXPENSES: Distribution (12b-1) and Service Fees Class A................................................... 6,615,796 Class B................................................... 11,361,882 Class C................................................... 2,142,151 Class R................................................... 8,971 Investment Advisory Fee..................................... 18,361,091 Transfer Agent Fees......................................... 15,430,987 Reports to Shareholders..................................... 971,577 Accounting and Administrative Expenses...................... 491,426 Custody..................................................... 189,042 Professional Fees........................................... 171,388 Trustees' Fees and Related Expenses......................... 119,786 Registration Fees........................................... 101,479 Other....................................................... 150,891 ------------ Total Expenses.......................................... 56,116,467 Less Credits Earned on Cash Balances.................... 162,291 ------------ Net Expenses............................................ 55,954,176 ------------ NET INVESTMENT LOSS......................................... $(15,303,162) ============ REALIZED AND UNREALIZED GAIN/LOSS: Realized Gain/Loss: Investments............................................... $418,964,548 Foreign Currency Transactions............................. (135) ------------ Net Realized Gain........................................... 418,964,413 ------------ Unrealized Appreciation/Depreciation: Beginning of the Period................................... 390,690,115 End of the Period......................................... 670,123,270 ------------ Net Unrealized Appreciation During the Period............... 279,433,155 ------------ NET REALIZED AND UNREALIZED GAIN............................ $698,397,568 ============ NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $683,094,406 ============
20 See Notes to Financial Statements VAN KAMPEN STRATEGIC GROWTH FUND FINANCIAL STATEMENTS continued Statements of Changes in Net Assets
FOR THE FOR THE YEAR ENDED YEAR ENDED AUGUST 31, 2007 AUGUST 31, 2006 ---------------------------------- FROM INVESTMENT ACTIVITIES: Operations: Net Investment Loss.................................... $ (15,303,162) $ (28,467,728) Net Realized Gain...................................... 418,964,413 602,318,022 Net Unrealized Appreciation/Depreciation During the Period........................................... 279,433,155 (592,957,591) --------------- --------------- NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES.... 683,094,406 (19,107,297) --------------- --------------- FROM CAPITAL TRANSACTIONS: Proceeds from Shares Sold.............................. 361,164,686 511,765,322 Cost of Shares Repurchased............................. (1,533,900,373) (1,593,108,658) --------------- --------------- NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS..... (1,172,735,687) (1,081,343,336) --------------- --------------- TOTAL DECREASE IN NET ASSETS........................... (489,641,281) (1,100,450,633) NET ASSETS: Beginning of the Period................................ 4,261,300,320 5,361,750,953 --------------- --------------- End of the Period (Including accumulated net investment loss of $671,376 and $602,271, respectively)......... $ 3,771,659,039 $ 4,261,300,320 =============== ===============
See Notes to Financial Statements 21 VAN KAMPEN STRATEGIC GROWTH FUND FINANCIAL HIGHLIGHTS THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE SHARE OF THE FUND OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
YEAR ENDED AUGUST 31, CLASS A SHARES -------------------------------------------------------- 2007 2006 2005 2004 2003 -------------------------------------------------------- NET ASSET VALUE, BEGINNING OF THE PERIOD.............................. $ 39.41 $ 39.84 $ 34.14 $ 34.08 $ 30.96 -------- -------- -------- -------- -------- Net Investment Loss (a)............. (0.05) (0.12) -0-(c) (0.16) (0.18) Net Realized and Unrealized Gain/Loss......................... 7.23 (0.31) 5.70 0.22 3.30 -------- -------- -------- -------- -------- Total from Investment Operations...... 7.18 (0.43) 5.70 0.06 3.12 -------- -------- -------- -------- -------- NET ASSET VALUE, END OF THE PERIOD.... $ 46.59 $ 39.41 $ 39.84 $ 34.14 $ 34.08 ======== ======== ======== ======== ======== Total Return (b)...................... 18.22% -1.08% 16.70% 0.18% 10.08% Net Assets at End of the Period (In millions)........................... $2,546.7 $2,727.5 $3,240.5 $3,663.9 $4,222.8 Ratio of Expenses to Average Net Assets.............................. 1.13% 1.09% 1.14% 1.08% 1.15% Ratio of Net Investment Loss to Average Net Assets.................. (0.13%) (0.29%) (0.00%) (0.46%) (0.61%) Portfolio Turnover.................... 111% 109% 100% 177% 180%
(a) Based on average shares outstanding. (b) Assumes reinvestment of all distributions for the period and does not include payment of the maximum sales charge of 5.75% 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 combined 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. (c) Amount is less than $.01. 22 See Notes to Financial Statements VAN KAMPEN STRATEGIC GROWTH FUND FINANCIAL HIGHLIGHTS continued THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE SHARE OF THE FUND OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
YEAR ENDED AUGUST 31, CLASS B SHARES ------------------------------------------------------ 2007 2006 2005 2004 2003 ------------------------------------------------------ NET ASSET VALUE, BEGINNING OF THE PERIOD............................... $33.42 $ 34.05 $ 29.40 $ 29.57 $ 27.07 ------ -------- -------- -------- -------- Net Investment Loss (a).............. (0.33) (0.37) (0.25) (0.38) (0.36) Net Realized and Unrealized Gain/Loss.......................... 6.13 (0.26) 4.90 0.21 2.86 ------ -------- -------- -------- -------- Total from Investment Operations....... 5.80 (0.63) 4.65 (0.17) 2.50 ------ -------- -------- -------- -------- NET ASSET VALUE, END OF THE PERIOD..... $39.22 $ 33.42 $ 34.05 $ 29.40 $ 29.57 ====== ======== ======== ======== ======== Total Return (b)....................... 17.35% -1.85% 15.82% -0.57% 9.24% Net Assets at End of the Period (In millions)............................ $982.2 $1,237.7 $1,731.5 $2,010.4 $2,346.3 Ratio of Expenses to Average Net Assets........................... 1.89% 1.85% 1.90% 1.85% 1.91% Ratio of Net Investment Loss to Average Net Assets........................... (0.89%) (1.05%) (0.76%) (1.23%) (1.37%) Portfolio Turnover..................... 111% 109% 100% 177% 180%
(a) Based on average shares outstanding. (b) Assumes reinvestment of all distributions for the period and does not include payment of the maximum CDSC of 5%, charged on certain redemptions made within one 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. See Notes to Financial Statements 23 VAN KAMPEN STRATEGIC GROWTH FUND FINANCIAL HIGHLIGHTS continued THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE SHARE OF THE FUND OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
YEAR ENDED AUGUST 31, CLASS C SHARES ---------------------------------------------- 2007 2006 2005 2004 2003 ---------------------------------------------- NET ASSET VALUE, BEGINNING OF THE PERIOD.... $34.28 $34.92 $30.16 $30.34 $27.75 ------ ------ ------ ------ ------ Net Investment Loss (a)................... (0.34) (0.38) (0.25) (0.39) (0.36) Net Realized and Unrealized Gain/Loss..... 6.29 (0.26) 5.01 0.21 2.95 ------ ------ ------ ------ ------ Total from Investment Operations............ 5.95 (0.64) 4.76 (0.18) 2.59 ------ ------ ------ ------ ------ NET ASSET VALUE, END OF THE PERIOD.......... $40.23 $34.28 $34.92 $30.16 $30.34 ====== ====== ====== ====== ====== Total Return (b)............................ 17.36% -1.83% 15.78% -0.59% 9.33%(c) Net Assets at End of the Period (In millions)................................. $190.2 $238.4 $332.8 $430.2 $570.1 Ratio of Expenses to Average Net Assets..... 1.89% 1.85% 1.90% 1.85% 1.91% Ratio of Net Investment Loss to Average Net Assets.................................... (0.89%) (1.05%) (0.75%) (1.23%) (1.34%)(c) Portfolio Turnover.......................... 111% 109% 100% 177% 180%
(a) Based on average shares outstanding. (b) 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 on Fund shares. (c) Certain non-recurring payments were made to Class C Shares, resulting in an increase to the Total Return and Ratio of Net Investment Loss to Average Net Assets of .03%. 24 See Notes to Financial Statements VAN KAMPEN STRATEGIC GROWTH FUND FINANCIAL HIGHLIGHTS continued THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE SHARE OF THE FUND OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
YEAR ENDED AUGUST 31, CLASS I SHARES ---------------------------------------------- 2007 2006 2005 2004 2003 ---------------------------------------------- NET ASSET VALUE, BEGINNING OF THE PERIOD.... $39.99 $40.33 $34.47 $34.33 $31.10 ------ ------ ------ ------ ------ Net Investment Income/Loss (a)............ 0.05 (0.01) 0.07 (0.08) (0.11) Net Realized and Unrealized Gain/Loss..... 7.36 (0.33) 5.79 0.22 3.34 ------ ------ ------ ------ ------ Total from Investment Operations............ 7.41 (0.34) 5.86 0.14 3.23 ------ ------ ------ ------ ------ NET ASSET VALUE, END OF THE PERIOD.......... $47.40 $39.99 $40.33 $34.47 $34.33 ====== ====== ====== ====== ====== Total Return (b)............................ 18.53% -0.84% 17.00% 0.41% 10.39% Net Assets at End of the Period (In millions)................................. $ 50.0 $ 55.6 $ 55.0 $ 31.8 $ 33.9 Ratio of Expenses to Average Net Assets..... 0.88% 0.84% 0.90% 0.84% 0.90% Ratio of Net Investment Income/Loss to Average Net Assets........................ 0.12% (0.03%) 0.20% (0.21%) (0.36%) Portfolio Turnover.......................... 111% 109% 100% 177% 180%
(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 redemptions of Fund shares. See Notes to Financial Statements 25 VAN KAMPEN STRATEGIC GROWTH FUND FINANCIAL HIGHLIGHTS continued THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE SHARE OF THE FUND OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
OCTOBER 1, 2002 (COMMENCEMENT YEAR ENDED AUGUST 31, OF INVESTMENT CLASS R SHARES -------------------------------------- OPERATIONS) TO 2007 2006 2005 2004 AUGUST 31, 2003 --------------------------------------------------------- NET ASSET VALUE, BEGINNING OF THE PERIOD............................. $39.08 $39.58 $34.02 $34.04 $29.94 ------ ------ ------ ------ ------ Net Investment Loss (a)............ (0.14) (0.19) (0.04) (0.24) (0.24) Net Realized and Unrealized Gain/Loss........................ 7.11 (0.31) 5.60 0.22 4.34 ------ ------ ------ ------ ------ Total from Investment Operations..... 6.97 (0.50) 5.56 (0.02) 4.10 ------ ------ ------ ------ ------ NET ASSET VALUE, END OF THE PERIOD... $46.05 $39.08 $39.58 $34.02 $34.04 ====== ====== ====== ====== ====== Total Return (b)..................... 17.84% -1.26%(c) 16.34% -0.06% 13.69%* Net Assets at End of the Period (In millions).......................... $ 2.5 $ 2.0 $ 2.0 $ 20.0 $ 0.5 Ratio of Expenses to Average Net Assets............................. 1.38% 1.27%(c) 1.37% 1.33% 1.41% Ratio of Net Investment Loss to Average Net Assets................. (0.34%) (0.47%)(c) (0.11%) (0.65%) (0.85%) Portfolio Turnover................... 111% 109% 100% 177% 180%
* Non-Annualized (a) Based on average shares outstanding. (b) Assumes reinvestment of all distributions for the period. These returns include combined Rule 12b-1 fees and service fees of up to .50% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemptions of Fund shares. (c) The Total Return, Ratio of Expenses to Average Net Assets, and Ratio of Net Investment Loss to Average Net Assets reflect actual 12b-1 fees of less than .50%. 26 See Notes to Financial Statements VAN KAMPEN STRATEGIC GROWTH FUND NOTES TO FINANCIAL STATEMENTS -- AUGUST 31, 2007 1. SIGNIFICANT ACCOUNTING POLICIES Van Kampen Strategic Growth Fund (the "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 investment objective is capital appreciation. The Fund commenced investment operations on October 2, 1970. The Fund offers Class A Shares, Class B Shares, Class C Shares, Class I Shares and Class R 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 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. Listed and unlisted securities for which the last sale price is not available are valued at the mean of the last reported bid and asked prices. For those securities where quotations or prices are not readily 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. B. SECURITY TRANSACTIONS Security transactions are recorded on a trade date basis. Realized gains and losses are determined on an identified cost basis. The Fund may invest in repurchase agreements, which are short-term investments whereby the Fund acquires ownership of a debt security and the seller agrees to repurchase the security at a future time and specified price. The Fund may invest independently in repurchase agreements, or transfer uninvested cash balances into a pooled cash account along with other investment companies advised by Van Kampen Asset Management (the "Adviser") or its affiliates, the daily aggregate of which is invested in repurchase agreements. Repurchase agreements are fully collateralized by the underlying debt security. The Fund will make payment for such securities only upon physical delivery or evidence of book entry transfer to the account of the custodian bank. The seller is required to maintain the value of the underlying security at not less than the repurchase proceeds due the Fund. C. INCOME AND EXPENSES Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. Income and expenses of the Fund are allocated on a pro rata basis to each class of shares, 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 27 VAN KAMPEN STRATEGIC GROWTH FUND NOTES TO FINANCIAL STATEMENTS -- AUGUST 31, 2007 continued and to distribute substantially all of its taxable income to its shareholders. Therefore, no provision for federal income taxes is required. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income earned or gains realized or repatriated. Taxes are accrued and applied to net investment income, net realized capital gains and net unrealized appreciation, as applicable, as the income is earned or capital gains are recorded. 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 loss and offset such losses against any future realized capital gains. During the current fiscal year, the Fund utilized capital losses carried forward of $419,806,059. At August 31, 2007, the Fund had an accumulated capital loss carryforward for tax purposes of $5,006,227,572, which will expire according to the following schedule.
AMOUNT EXPIRATION $2,253,729,859.............................................. August 31, 2010 2,752,497,713.............................................. August 31, 2011
At August 31, 2007, the cost and related gross unrealized appreciation and depreciation were as follows: Cost of investments for tax purposes........................ $3,146,806,727 ============== Gross tax unrealized appreciation........................... $ 713,965,120 Gross tax unrealized depreciation........................... (44,652,964) -------------- Net tax unrealized appreciation on investments.............. $ 669,312,156 ==============
E. DISTRIBUTION OF INCOME AND GAINS The Fund declares and pays dividends at least annually from net investment income and from net realized gains, if any. Distributions from net realized gains for book purposes may include short-term capital gains, which are included as ordinary income for tax purposes. There were no distributions paid during the years ended August 31, 2007 and 2006. Permanent differences, primarily due to a net operating loss, resulted in the following reclassifications among the Fund's components of net assets at August 31, 2007:
ACCUMULATED NET ACCUMULATED NET INVESTMENT LOSS REALIZED LOSS CAPITAL --------------- --------------- ------------ $15,234,057 $30,532 $(15,264,589)
As of August 31, 2007, there were no distributable earnings on a tax basis. 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 year ended August 31, 2007, the Fund's custody fee was reduced by $162,291 as a result of credits earned on cash balances. G. FOREIGN CURRENCY TRANSLATION The market value of foreign securities, forward foreign currency contracts and other assets and liabilities denominated in a foreign currency are 28 VAN KAMPEN STRATEGIC GROWTH FUND NOTES TO FINANCIAL STATEMENTS -- AUGUST 31, 2007 continued 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. The cost of securities is determined using historical exchange rates. Gains and losses on the sale of securities are not segregated for financial reporting purposes between amounts arising from the changes in exchange rates and amounts arising from changes in the market prices of securities. Realized gains and losses on foreign currency include 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 $350 million.......................................... .575% Next $350 million........................................... .525% Next $350 million........................................... .475% Over $1.05 billion.......................................... .425%
For the year ended August 31, 2007, the Fund recognized expenses of approximately $97,400 representing legal services provided by Skadden, Arps, Slate, Meagher & Flom LLP, counsel to the Fund, 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 compliance services to the Fund. The costs of these services are allocated to each fund. For the year ended August 31, 2007, the Fund recognized expenses of approximately $186,300 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 "Accounting and Administrative 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 year ended August 31, 2007, the Fund recognized expenses of approximately $12,122,800 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 $559,859 are included in "Other" assets on the Statement of Assets and Liabilities at August 31, 2007. Appreciation/depreciation and distributions received from these investments are recorded with an 29 VAN KAMPEN STRATEGIC GROWTH FUND NOTES TO FINANCIAL STATEMENTS -- AUGUST 31, 2007 continued 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 year ended August 31, 2007, the Fund paid brokerage commissions to Morgan Stanley DW Inc., an affiliate of the Adviser, totaling $557,685. For the year ended August 31, 2007, Van Kampen, as Distributor for the Fund, received net commissions on sales of the Fund's Class A Shares of approximately $345,300 and contingent deferred sales charge (CDSC) on redeemed shares of approximately $1,287,700. Sales charges do not represent expenses of the Fund. 3. CAPITAL TRANSACTIONS For the years ended August 31, 2007 and 2006, transactions were as follows:
FOR THE FOR THE YEAR ENDED YEAR ENDED AUGUST 31, 2007 AUGUST 31, 2006 ------------------------------ ------------------------------ SHARES VALUE SHARES VALUE Sales: Class A.................... 6,544,066 $ 286,906,971 9,539,369 $ 395,313,593 Class B.................... 1,315,980 48,489,603 2,047,020 72,463,766 Class C.................... 222,561 8,351,927 394,163 14,361,191 Class I.................... 357,770 15,645,437 677,738 28,589,018 Class R.................... 39,604 1,770,748 25,099 1,037,754 ----------- --------------- ----------- --------------- Total Sales.................. 8,479,981 $ 361,164,686 12,683,389 $ 511,765,322 =========== =============== =========== =============== Repurchases: Class A.................... (21,091,877) $ (918,641,244) (21,666,389) $ (899,288,527) Class B.................... (13,306,293) (491,004,084) (15,868,735) (558,115,587) Class C.................... (2,448,340) (91,957,524) (2,967,859) (107,402,540) Class I.................... (693,514) (30,627,206) (651,419) (27,373,544) Class R.................... (38,720) (1,670,315) (22,588) (928,460) ----------- --------------- ----------- --------------- Total Repurchases............ (37,578,744) $(1,533,900,373) (41,176,990) $(1,593,108,658) =========== =============== =========== ===============
4. REDEMPTION FEE The Fund will assess a 2% redemption fee on the proceeds of Fund shares that are redeemed (either by sale or exchange) within seven days of purchase. The redemption fee is paid directly to the Fund and allocated on a pro rata basis to each class of shares. For the year ended August 31, 2007, the Fund received redemption fees of approximately $15,100 which are reported as part of "Cost of Shares Repurchased" on the Statement of Changes in Net Assets. The per share impact from redemption fees paid to the Fund was less than $0.01. 5. INVESTMENT TRANSACTIONS During the period, the cost of purchases and proceeds from sales of investments, excluding short-term investments, were $4,368,731,126 and $5,265,376,130, respectively. 30 VAN KAMPEN STRATEGIC GROWTH FUND NOTES TO FINANCIAL STATEMENTS -- AUGUST 31, 2007 continued 6. 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, Class C Shares and Class R Shares to compensate the Distributor for the sale, 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, up to 1.00% each of Class B and Class C average daily net assets and up to .50% of Class R 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 $3,919,800 and $1,476,600 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. 7. 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. 8. ACCOUNTING PRONOUNCEMENTS In July 2006, the Financial Accounting Standards Board (FASB) issued Interpretation 48, Accounting for Uncertainty in Income Taxes -- an interpretation of FASB Statement 109 (FIN 48). FIN 48 clarifies the accounting for income taxes by prescribing the minimum recognition threshold a tax position must meet before being recognized in the financial statements. FIN 48 is effective for the fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. Recent SEC guidance allows implementing FIN 48 in the fund NAV calculations as late as the fund's last NAV calculation in the first required financial statement period. As a result, the Fund will incorporate FIN 48 in its semi annual report on February 29, 2008. The impact to the Fund's financial statements, if any, is currently being assessed. In addition, in September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosures. 9. FUND MERGER On September 19, 2007, the Trustees of Van Kampen Strategic Growth Fund ("Target Fund") announced its intention to merge the Target Fund into the Van Kampen Pace Fund ("Acquiring Fund"). The Trustees of each of the funds have approved in principal an agreement and plan of reorganization between the funds providing for a transfer of assets and liabilities of the Target Fund to the Acquiring Fund in exchange for shares of beneficial interest of the Acquiring Fund (the "Reorganization"). The Reorganization is subject to the approval by the shareholders of the Target Fund. 31 VAN KAMPEN STRATEGIC GROWTH FUND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Shareholders and Board of Trustees of Van Kampen Strategic Growth Fund We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Van Kampen Strategic Growth Fund (formerly the Van Kampen Emerging Growth Fund) (the "Fund") as of August 31, 2007, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Fund's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of August 31, 2007, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Van Kampen Strategic Growth Fund at August 31, 2007, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles. /s/ Ernst & Young LLP Chicago, Illinois October 16, 2007 32 VAN KAMPEN STRATEGIC GROWTH 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 DENNIS SHEA Vice President J. DAVID GERMANY Vice President AMY R. DOBERMAN Vice President STEFANIE V. CHANG Vice President and Secretary JOHN L. SULLIVAN Chief Compliance Officer STUART N. SCHULDT Chief Financial Officer and Treasurer INVESTMENT ADVISER VAN KAMPEN ASSET MANAGEMENT 522 Fifth Avenue New York, New York 10036 DISTRIBUTOR VAN KAMPEN FUNDS INC. One Parkview Plaza--Suite 100 P.O. Box 5555 Oakbrook Terrace, Illinois 60181-5555 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. 33 VAN KAMPEN STRATEGIC GROWTH FUND TRUSTEES AND OFFICERS The business and affairs of the Fund are managed under the direction of the Fund's Board of Trustees and the Fund's officers appointed by the Board of Trustees. The tables below list the trustees and executive officers of the Fund and their principal occupations during the last five years, other directorships held by trustees and their affiliations, if any, with Van Kampen Investments, the Adviser, the Distributor, Van Kampen Advisors Inc., Van Kampen Exchange Corp. and Investor Services. The term "Fund Complex" includes each of the investment companies advised by the Adviser as of the date of this Annual Report. Trustees serve until reaching their retirement age or until their successors are duly elected and qualified. Officers are annually elected by the trustees. INDEPENDENT TRUSTEES
NUMBER OF TERM OF FUNDS IN OFFICE AND FUND POSITION(S) LENGTH OF COMPLEX NAME, AGE AND ADDRESS HELD WITH TIME PRINCIPAL OCCUPATION(S) OVERSEEN OTHER DIRECTORSHIPS OF INDEPENDENT TRUSTEE FUND SERVED DURING PAST 5 YEARS BY TRUSTEE HELD BY TRUSTEE David C. Arch (62) Trustee Trustee Chairman and Chief 73 Trustee/Director/Managing Blistex Inc. since 2003 Executive Officer of General Partner of funds 1800 Swift Drive Blistex Inc., a consumer in the Fund Complex. Oak Brook, IL 60523 health care products Director of the Heartland manufacturer. Alliance, a nonprofit organization serving human needs based in Chicago. Board member of the Illinois Manufacturers' Association. Jerry D. Choate (69) Trustee Trustee Prior to January 1999, 73 Trustee/Director/Managing 33971 Selva Road since 1999 Chairman and Chief General Partner of funds Suite 130 Executive Officer of the in the Fund Complex. Dana Point, CA 92629 Allstate Corporation Director of H&R Block, ("Allstate") and Allstate Amgen Inc., a Insurance Company. Prior biotechnological company, to January 1995, and Valero Energy President and Chief Corporation, an Executive Officer of independent refining Allstate. Prior to August company. 1994, various management positions at Allstate.
34
VAN KAMPEN STRATEGIC GROWTH FUND TRUSTEES AND OFFICERS continued NUMBER OF TERM OF FUNDS IN OFFICE AND FUND POSITION(S) LENGTH OF COMPLEX NAME, AGE AND ADDRESS HELD WITH TIME PRINCIPAL OCCUPATION(S) OVERSEEN OTHER DIRECTORSHIPS OF INDEPENDENT TRUSTEE FUND SERVED DURING PAST 5 YEARS BY TRUSTEE HELD BY TRUSTEE Rod Dammeyer (66) Trustee Trustee President of CAC, L.L.C., 73 Trustee/Director/Managing CAC, L.L.C. since 2003 a private company General Partner of funds 4350 LaJolla Village Drive offering capital in the Fund Complex. Suite 980 investment and management Director of Quidel San Diego, CA 92122-6223 advisory services. Corporation, Stericycle, Inc., Ventana Medical Systems, Inc. and Trustee of The Scripps Research Institute. Prior to April 2007, Director of GATX Corporation. Prior to April 2004, Director of TheraSense, Inc. Prior to January 2004, Director of TeleTech Holdings Inc. and Arris Group, Inc. Linda Hutton Heagy+ (59) Trustee Trustee Managing Partner of 73 Trustee/Director/Managing Heidrick & Struggles since 1995 Heidrick & Struggles, an General Partner of funds 233 South Wacker Drive international executive in the Fund Complex. Suite 7000 search firm. Prior to Trustee on the University Chicago, IL 60606 1997, Partner of Ray & of Chicago Hospitals Berndtson, Inc., an Board, Vice Chair of the executive recruiting Board of the YMCA of firm. Prior to 1995, Metropolitan Chicago and Executive Vice President a member of the Women's of ABN AMRO, N.A., a bank Board of the University holding company. Prior to of Chicago. 1990, Executive Vice President of The Exchange National Bank.
35
VAN KAMPEN STRATEGIC GROWTH FUND TRUSTEES AND OFFICERS continued NUMBER OF TERM OF FUNDS IN OFFICE AND FUND POSITION(S) LENGTH OF COMPLEX NAME, AGE AND ADDRESS HELD WITH TIME PRINCIPAL OCCUPATION(S) OVERSEEN OTHER DIRECTORSHIPS OF INDEPENDENT TRUSTEE FUND SERVED DURING PAST 5 YEARS BY TRUSTEE HELD BY TRUSTEE R. Craig Kennedy (55) Trustee Trustee Director and President of 73 Trustee/Director/Managing 1744 R Street, NW since 1995 the German Marshall Fund General Partner of funds Washington, DC 20009 of the United States, an in the Fund Complex. independent U.S. foundation created to deepen understanding, promote collaboration and stimulate exchanges of practical experience between Americans and Europeans. Formerly, advisor to the Dennis Trading Group Inc., a managed futures and option company that invests money for individuals and institutions. Prior to 1992, President and Chief Executive Officer, Director and member of the Investment Committee of the Joyce Foundation, a private foundation. Howard J Kerr (71) Trustee Trustee Prior to 1998, President 73 Trustee/Director/Managing 14 Huron Trace since 2003 and Chief Executive General Partner of funds Galena, IL 61036 Officer of Pocklington in the Fund Complex. Corporation, Inc., an Director of the Lake investment holding Forest Bank & Trust. company. Director of the Marrow Foundation. Jack E. Nelson (71) Trustee Trustee President of Nelson 73 Trustee/Director/Managing 423 Country Club Drive since 1995 Investment Planning General Partner of funds Winter Park, FL 32789 Services, Inc., a in the Fund Complex. financial planning company and registered investment adviser in the State of Florida. President of Nelson Ivest Brokerage Services Inc., a member of FINRA, Securities Investors Protection Corp. and the Municipal Securities Rulemaking Board. President of Nelson Sales and Services Corporation, a marketing and services company to support affiliated companies.
36
VAN KAMPEN STRATEGIC GROWTH FUND TRUSTEES AND OFFICERS continued NUMBER OF TERM OF FUNDS IN OFFICE AND FUND POSITION(S) LENGTH OF COMPLEX NAME, AGE AND ADDRESS HELD WITH TIME PRINCIPAL OCCUPATION(S) OVERSEEN OTHER DIRECTORSHIPS OF INDEPENDENT TRUSTEE FUND SERVED DURING PAST 5 YEARS BY TRUSTEE HELD BY TRUSTEE Hugo F. Sonnenschein (66) Trustee Trustee President Emeritus and 73 Trustee/Director/Managing 1126 E. 59th Street since 2003 Honorary Trustee of the General Partner of funds Chicago, IL 60637 University of Chicago and in the Fund Complex. the Adam Smith Trustee of the University Distinguished Service of Rochester and a member Professor in the of its investment Department of Economics committee. Member of the at the University of National Academy of Chicago. Prior to July Sciences, the American 2000, President of the Philosophical Society and University of Chicago. a fellow of the American Academy of Arts and Sciences.
37
VAN KAMPEN STRATEGIC GROWTH FUND TRUSTEES AND OFFICERS continued NUMBER OF TERM OF FUNDS IN OFFICE AND FUND POSITION(S) LENGTH OF COMPLEX NAME, AGE AND ADDRESS HELD WITH TIME PRINCIPAL OCCUPATION(S) OVERSEEN OTHER DIRECTORSHIPS OF INDEPENDENT TRUSTEE FUND SERVED DURING PAST 5 YEARS BY TRUSTEE HELD BY TRUSTEE Suzanne H. Woolsey, Ph.D. Trustee Trustee Chief Communications 73 Trustee/Director/Managing (65) since 1999 Officer of the National General Partner of funds 815 Cumberstone Road Academy of in the Fund Complex. Harwood, MD 20776 Sciences/National Director of Fluor Corp., Research Council, an an engineering, independent, federally procurement and chartered policy construction institution, from 2001 to organization, since November 2003 and Chief January 2004. Director of Operating Officer from Intelligent Medical 1993 to 2001. Prior to Devices, Inc., a symptom 1993, Executive Director based diagnostic tool for of the Commission on physicians and clinical Behavioral and Social labs. Director of the Sciences and Education at Institute for Defense the National Academy of Analyses, a federally Sciences/National funded research and Research Council. From development center, 1980 through 1989, Director of the German Partner of Coopers & Marshall Fund of the Lybrand. United States, Director of the Rocky Mountain Institute of Technology and the Colorado College.
38 VAN KAMPEN STRATEGIC GROWTH FUND TRUSTEES AND OFFICERS continued INTERESTED TRUSTEE*
NUMBER OF TERM OF FUNDS IN OFFICE AND FUND POSITION(S) LENGTH OF COMPLEX NAME, AGE AND ADDRESS HELD WITH TIME PRINCIPAL OCCUPATION(S) OVERSEEN OTHER DIRECTORSHIPS OF INTERESTED TRUSTEE FUND SERVED DURING PAST 5 YEARS BY TRUSTEE HELD BY TRUSTEE Wayne W. Whalen* (68) Trustee Trustee Partner in the law firm 73 Trustee/Director/Managing 333 West Wacker Drive since 1995 of Skadden, Arps, Slate, General Partner of funds Chicago, IL 60606 Meagher & Flom LLP, legal in the Fund Complex. counsel to funds in the Director of the Abraham Fund Complex. Lincoln Presidential Library Foundation.
+ As indicated above, Ms. Heagy is an employee of Heidrick and Struggles, an international executive search firm ("Heidrick"). Heidrick has been (and may continue to be) engaged by Morgan Stanley from time to time to perform executive searches. Such searches have been unrelated to Van Kampen's or Morgan Stanley's asset management businesses and have been done by professionals at Heidrick without any involvement by Ms. Heagy. Ethical wall procedures exist to ensure that Ms. Heagy will not have any involvement with any searches performed by Heidrick for Morgan Stanley. Ms. Heagy does not receive any compensation, directly or indirectly, for searches performed by Heidrick for Morgan Stanley. Ms. Heagy does own common shares of Heidrick (representing less than 1% of Heidrick's outstanding common shares). * Mr. Whalen is an "interested person" (within the meaning of Section 2(a)(19) of the 1940 Act) of certain funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such funds in the Fund Complex. 39 VAN KAMPEN STRATEGIC GROWTH FUND TRUSTEES AND OFFICERS continued OFFICERS
TERM OF OFFICE AND POSITION(S) LENGTH OF NAME, AGE AND HELD WITH TIME PRINCIPAL OCCUPATION(S) ADDRESS OF OFFICER FUND SERVED DURING PAST 5 YEARS Ronald E. Robison (68) President and Officer President of funds in the Fund Complex since September 2005 522 Fifth Avenue Principal Executive since 2003 and Principal Executive Officer of funds in the Fund Complex New York, NY 10036 Officer since May 2003. Managing Director of Van Kampen Advisors Inc. since June 2003. Director of Investor Services since September 2002. Director of the Adviser, Van Kampen Investments and Van Kampen Exchange Corp. since January 2005. Managing Director of Morgan Stanley and Morgan Stanley & Co. Incorporated. Managing Director and Director of Morgan Stanley Investment Management Inc. Chief Administrative Officer, Managing Director and Director of Morgan Stanley Investment Advisors Inc. and Morgan Stanley Services Company Inc. Managing Director and Director of Morgan Stanley Distributors Inc. and Morgan Stanley Distribution Inc. Chief Executive Officer and Director of Morgan Stanley Trust. Executive Vice President and Principal Executive Officer of the Institutional and Retail Morgan Stanley Funds. Director of Morgan Stanley SICAV. Previously, Chief Global Operations Officer of Morgan Stanley Investment Management Inc. and Executive Vice President of funds in the Fund Complex from May 2003 to September 2005. Dennis Shea (54) Vice President Officer Managing Director of Morgan Stanley Investment Advisors 522 Fifth Avenue since 2006 Inc., Morgan Stanley Investment Management Inc., the Adviser New York, NY 10036 and Van Kampen Advisors Inc. Chief Investment Officer-- Global Equity of the same entities since February 2006. Vice President of Morgan Stanley Institutional and Retail Funds since February 2006. Vice President of funds in the Fund Complex since March 2006. Previously, Managing Director and Director of Global Equity Research at Morgan Stanley from April 2000 to February 2006. J. David Germany (53) Vice President Officer Managing Director of Morgan Stanley Investment Advisors 20 Bank Street, since 2006 Inc., Morgan Stanley Investment Management Inc., the Adviser Canary Wharf and Van Kampen Advisors Inc. Chief Investment Officer-- London, GBR E14 4AD Global Fixed Income of the same entities since December 2005. Managing Director and Director of Morgan Stanley Investment Management Ltd. Director of Morgan Stanley Investment Management (ACD) Limited since December 2003. Vice President of Morgan Stanley Institutional and Retail Funds since February 2006. Vice President of funds in the Fund Complex since March 2006.
40
VAN KAMPEN STRATEGIC GROWTH FUND TRUSTEES AND OFFICERS continued TERM OF OFFICE AND POSITION(S) LENGTH OF NAME, AGE AND HELD WITH TIME PRINCIPAL OCCUPATION(S) ADDRESS OF OFFICER FUND SERVED DURING PAST 5 YEARS Amy R. Doberman (45) Vice President Officer Managing Director and General Counsel--U.S. Investment 522 Fifth Avenue since 2004 Management; Managing Director of Morgan Stanley Investment New York, NY 10036 Management Inc., Morgan Stanley Investment Advisors Inc. and the Adviser. Vice President of the Morgan Stanley Institutional and Retail Funds since July 2004 and Vice President of funds in the Fund Complex since August 2004. Previously, Managing Director and General Counsel of Americas, UBS Global Asset Management from July 2000 to July 2004 and General Counsel of Aeltus Investment Management, Inc. from January 1997 to July 2000. Stefanie V. Chang (40) Vice President Officer Executive Director of Morgan Stanley Investment Management 522 Fifth Avenue and Secretary since 2003 Inc. Vice President and Secretary of funds in the Fund New York, NY 10036 Complex. John L. Sullivan (52) Chief Compliance Officer Chief Compliance Officer of funds in the Fund Complex since 1 Parkview Plaza - Suite 100 Officer since 1996 August 2004. Prior to August 2004, Director and Managing Oakbrook Terrace, IL 60181 Director of Van Kampen Investments, the Adviser, Van Kampen Advisors Inc. and certain other subsidiaries of Van Kampen Investments, Vice President, Chief Financial Officer and Treasurer of funds in the Fund Complex and head of Fund Accounting for Morgan Stanley Investment Management Inc. Prior to December 2002, Executive Director of Van Kampen Investments, the Adviser and Van Kampen Advisors Inc. Stuart N. Schuldt (45) Chief Financial Officer Officer Executive Director of Morgan Stanley Investment Management 1 Parkview Plaza - Suite 100 and Treasurer since 2007 Inc. since June 2007. Chief Financial Officer and Treasurer Oakbrook Terrace, IL 60181 of funds in the Fund Complex since June 2007. Prior to June 2007, Senior Vice President of Northern Trust Company, Treasurer and Principal Financial Officer for Northern Trust U.S. mutual fund complex.
41 Van Kampen Strategic Growth 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 Strategic Growth 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 Strategic Growth 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. The Statement of Additional Information includes additional information about Fund trustees and is available, without charge, upon request by calling 1-800-847-2424. Van Kampen Funds Inc. 1 Parkview Plaza - Suite 100 P.O. Box 5555 Oakbrook Terrace, IL 60181-5555 www.vankampen.com Copyright (C)2007 Van Kampen Funds Inc. All rights reserved. Member FINRA/SIPC. 16, 116, 216, 516, 316 EMGANN 10/07 (VAN KAMPEN INVESTMENTS LOGO) IU07-03925P-Y08/07 Item 2. Code of Ethics. (a) The Fund has adopted a code of ethics (the "Code of Ethics") that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the Fund or a third party. (b) No information need be disclosed pursuant to this paragraph. (c) Due to personnel changes at the Adviser, the list of covered officers set forth in Exhibit B was amended in November 2006 and June 2007 and the general counsel's designee set forth in Exhibit C was amended in October and December 2006. All three editions of Exhibit B and all three editions of Exhibit C are attached. (d) Not applicable. (e) Not applicable. (f) (1) The Fund's Code of Ethics is attached hereto as Exhibit 12(1). (2) Not applicable. (3) Not applicable. Item 3. Audit Committee Financial Expert. The Fund's Board of Trustees has determined that it has three "audit committee financial experts" serving on its audit committee, each of whom are "independent" Trustees : Rod Dammeyer, Jerry D. Choate and R. Craig Kennedy. Under applicable securities laws, a person who is determined to be an audit committee financial expert will not be deemed an "expert" for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities that are greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and Board of Trustees in the absence of such designation or identification. Item 4. Principal Accountant Fees and Services. (a)(b)(c)(d) and (g). Based on fees billed for the periods shown: 2007
REGISTRANT COVERED ENTITIES(1) ---------- ------------------- AUDIT FEES.............. $71,100 N/A NON-AUDIT FEES AUDIT-RELATED FEES... $ 0 $ 781,800(2) TAX FEES............. $ 2,575(3) $ 63,070(4) ALL OTHER FEES....... $ 0 $ 157,910(5) TOTAL NON-AUDIT FEES.... $ 2,575 $1,002,780 TOTAL................... $73,675 $1,002,780
2006
REGISTRANT COVERED ENTITIES(1) ---------- ------------------- AUDIT FEES.............. $69,000 N/A NON-AUDIT FEES AUDIT-RELATED FEES... $ 0 $ 706,000(2) TAX FEES............. $ 2,300(3) $ 75,537(4) ALL OTHER FEES....... $ 0 $ 749,041(5) TOTAL NON-AUDIT FEES.... $ 2,300 $1,530,578 TOTAL................... $71,300 $1,530,578
N/A- Not applicable, as not required by Item 4. (1) Covered Entities include the Adviser (excluding sub-advisors) and any entity controlling, controlled by or under common control with the Adviser that provides ongoing services to the Registrant. (2) Audit-Related Fees represent assurance and related services provided that are reasonably related to the performance of the audit of the financial statements of the Covered Entities' and funds advised by the Adviser or its affiliates, specifically attestation services provided in connection with a SAS 70 Report. (3) Tax Fees represent tax advice and compliance services provided in connection with the review of the Registrant's tax. (4) Tax Fees represent tax advice services provided to Covered Entities, including research and identification of PFIC entities. (5) All Other Fees represent attestation services provided in connection with performance presentation standards and assistance with compliance policies and procedures. (e)(1) The audit committee's pre-approval policies and procedures are as follows: JOINT AUDIT COMMITTEE AUDIT AND NON-AUDIT SERVICES PRE-APPROVAL POLICY AND PROCEDURES OF THE VAN KAMPEN FUNDS AS ADOPTED JULY 23, 2003 AND AMENDED MAY 26, 2004(1) 1. STATEMENT OF PRINCIPLES The Audit Committee of the Board is required to review and, in its sole discretion, pre-approve all Covered Services to be provided by the Independent Auditors to the Fund and Covered Entities in order to assure that services performed by the Independent Auditors do not impair the auditor's independence from the Fund.(2) The SEC has issued rules specifying the types of services that an independent auditor may not provide to its audit client, as well as the audit committee's administration of the engagement of the independent auditor. The SEC's rules establish two different approaches to pre-approving services, which the SEC considers to be equally valid. Proposed services either: may be pre-approved without consideration of specific case-by-case services by the Audit Committee ("general pre-approval"); or require the specific pre-approval of the Audit Committee ("specific pre-approval"). The Audit Committee believes that the combination of these two approaches in this Policy will result in an effective and efficient procedure to pre-approve services performed by the Independent Auditors. As set forth in this Policy, unless a type of service has received general pre-approval, it will require specific pre-approval by the Audit Committee (or by any member of the Audit Committee to which pre-approval authority has been delegated) if it is to be provided by the Independent Auditors. Any proposed services exceeding pre-approved cost levels or budgeted amounts will also require specific pre-approval by the Audit Committee. For both types of pre-approval, the Audit Committee will consider whether such services are consistent with the SEC's rules on auditor independence. The Audit Committee will also consider whether the Independent Auditors are best positioned to provide the most effective and efficient services, for reasons such as its familiarity with the Fund's business, people, culture, accounting systems, risk profile and other factors, and whether the service might enhance the Fund's ability to manage or control risk or improve audit quality. All such factors will be considered as a whole, and no one factor should necessarily be determinative. The Audit Committee is also mindful of the relationship between fees for audit and non-audit services in deciding whether to pre-approve any such services and may determine for each fiscal year, the appropriate ratio between the total amount of fees for Audit, Audit-related and Tax services for the Fund (including any Audit-related or Tax service fees for Covered Entities that were subject to pre-approval), and the total amount of fees for certain permissible non-audit services classified as All Other services for the Fund (including any such services for Covered Entities subject to pre-approval). The appendices to this Policy describe the Audit, Audit-related, Tax and All Other services that have the general pre-approval of the Audit Committee. The term of any general pre-approval is 12 months from the date of pre-approval, unless the Audit Committee considers and provides a different period and states otherwise. The Audit Committee will annually review and pre-approve the services that may be provided by the Independent Auditors without obtaining specific pre-approval from the Audit Committee. The Audit Committee will add to or subtract from the list of general pre-approved services from time to time, based on subsequent determinations. The purpose of this Policy is to set forth the policy and procedures by which the Audit Committee intends to fulfill its responsibilities. It does not delegate the Audit Committee's responsibilities to pre-approve services performed by the Independent Auditors to management. - ---------- (1) This Joint Audit Committee Audit and Non-Audit Services Pre-Approval Policy and Procedures (the "Policy"), amended as of the date above, supercedes and replaces all prior versions that may have been amended from time to time. (2) Terms used in this Policy and not otherwise defined herein shall have the meanings as defined in the Joint Audit Committee Charter. The Fund's Independent Auditors have reviewed this Policy and believes that implementation of the Policy will not adversely affect the Independent Auditors' independence. 2. DELEGATION As provided in the Act and the SEC's rules, the Audit Committee may delegate either type of pre-approval authority to one or more of its members. The member to whom such authority is delegated must report, for informational purposes only, any pre-approval decisions to the Audit Committee at its next scheduled meeting. 3. AUDIT SERVICES The annual Audit services engagement terms and fees are subject to the specific pre-approval of the Audit Committee. Audit services include the annual financial statement audit and other procedures required to be performed by the Independent Auditors to be able to form an opinion on the Fund's financial statements. These other procedures include information systems and procedural reviews and testing performed in order to understand and place reliance on the systems of internal control, and consultations relating to the audit. The Audit Committee will monitor the Audit services engagement as necessary, but no less than on a quarterly basis, and will also approve, if necessary, any changes in terms, conditions and fees resulting from changes in audit scope, Fund structure or other items. In addition to the annual Audit services engagement approved by the Audit Committee, the Audit Committee may grant general pre-approval to other Audit services, which are those services that only the Independent Auditors reasonably can provide. Other Audit services may include statutory audits and services associated with SEC registration statements (on Forms N-1A, N-2, N-3, N-4, etc.), periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings. The Audit Committee has pre-approved the Audit services in Appendix B.1. All other Audit services not listed in Appendix B.1 must be specifically pre-approved by the Audit Committee (or by any member of the Audit Committee to which pre-approval has been delegated). 4. AUDIT-RELATED SERVICES Audit-related services are assurance and related services that are reasonably related to the performance of the audit or review of the Fund's financial statements or, to the extent they are Covered Services, the Covered Entities' financial statements, or that are traditionally performed by the Independent Auditors. Because the Audit Committee believes that the provision of Audit-related services does not impair the independence of the auditor and is consistent with the SEC's rules on auditor independence, the Audit Committee may grant general pre-approval to Audit-related services. Audit-related services include, among others, accounting consultations related to accounting, financial reporting or disclosure matters not classified as "Audit services"; assistance with understanding and implementing new accounting and financial reporting guidance from rulemaking authorities; agreed-upon or expanded audit procedures related to accounting and/or billing records required to respond to or comply with financial, accounting or regulatory reporting matters; and assistance with internal control reporting requirements under Forms N-SAR and/or N-CSR. The Audit Committee has pre-approved the Audit-related services in Appendix B.2. All other Audit-related services not listed in Appendix B.2 must be specifically pre-approved by the Audit Committee (or by any member of the Audit Committee to which pre-approval has been delegated). 5. TAX SERVICES The Audit Committee believes that the Independent Auditors can provide Tax services to the Fund and, to the extent they are Covered Services, the Covered Entities, such as tax compliance, tax planning and tax advice without impairing the auditor's independence, and the SEC has stated that the Independent Auditors may provide such services. Hence, the Audit Committee believes it may grant general pre-approval to those Tax services that have historically been provided by the Independent Auditors, that the Audit Committee has reviewed and believes would not impair the independence of the Independent Auditors, and that are consistent with the SEC's rules on auditor independence. The Audit Committee will not permit the retention of the Independent Auditors in connection with a transaction initially recommended by the Independent Auditors, the sole business purpose of which may be tax avoidance and the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Audit Committee will consult with Director of Tax or outside counsel to determine that the tax planning and reporting positions are consistent with this policy. Pursuant to the preceding paragraph, the Audit Committee has pre-approved the Tax Services in Appendix B.3. All Tax services involving large and complex transactions not listed in Appendix B.3 must be specifically pre-approved by the Audit Committee (or by any member of the Audit Committee to which pre-approval has been delegated), including tax services proposed to be provided by the Independent Auditors to any executive officer or trustee/director/managing general partner of the Fund, in his or her individual capacity, where such services are paid for by the Fund (generally applicable only to internally managed investment companies). 6. ALL OTHER SERVICES The Audit Committee believes, based on the SEC's rules prohibiting the Independent Auditors from providing specific non-audit services, that other types of non-audit services are permitted. Accordingly, the Audit Committee believes it may grant general pre-approval to those permissible non-audit services classified as All Other services that it believes are routine and recurring services, would not impair the independence of the auditor and are consistent with the SEC's rules on auditor independence. The Audit Committee has pre-approved the All Other services in Appendix B.4. Permissible All Other services not listed in Appendix B.4 must be specifically pre-approved by the Audit Committee (or by any member of the Audit Committee to which pre-approval has been delegated). A list of the SEC's prohibited non-audit services is attached to this policy as Appendix B.5. The SEC's rules and relevant guidance should be consulted to determine the precise definitions of these services and the applicability of exceptions to certain of the prohibitions. 7. PRE-APPROVAL FEE LEVELS OR BUDGETED AMOUNTS Pre-approval fee levels or budgeted amounts for all services to be provided by the Independent Auditors will be established annually by the Audit Committee. Any proposed services exceeding these levels or amounts will require specific pre-approval by the Audit Committee. The Audit Committee is mindful of the overall relationship of fees for audit and non-audit services in determining whether to pre-approve any such services. For each fiscal year, the Audit Committee may determine the appropriate ratio between the total amount of fees for Audit, Audit-related, and Tax services for the Fund (including any Audit-related or Tax services fees for Covered Entities subject to pre-approval), and the total amount of fees for certain permissible non-audit services classified as All Other services for the Fund (including any such services for Covered Entities subject to pre-approval). 8. PROCEDURES All requests or applications for services to be provided by the Independent Auditors that do not require specific approval by the Audit Committee will be submitted to the Fund's Chief Financial Officer and must include a detailed description of the services to be rendered. The Fund's Chief Financial Officer will determine whether such services are included within the list of services that have received the general pre-approval of the Audit Committee. The Audit Committee will be informed on a timely basis of any such services rendered by the Independent Auditors. Requests or applications to provide services that require specific approval by the Audit Committee will be submitted to the Audit Committee by both the Independent Auditors and the Fund's Chief Financial Officer, and must include a joint statement as to whether, in their view, the request or application is consistent with the SEC's rules on auditor independence. The Audit Committee has designated the Fund's Chief Financial Officer to monitor the performance of all services provided by the Independent Auditors and to determine whether such services are in compliance with this Policy. The Fund's Chief Financial Officer will report to the Audit Committee on a periodic basis on the results of its monitoring. A sample report is included as Appendix B.7. Both the Fund's Chief Financial Officer and management will immediately report to the chairman of the Audit Committee any breach of this Policy that comes to the attention of the Fund's Chief Financial Officer or any member of management. 9. ADDITIONAL REQUIREMENTS The Audit Committee has determined to take additional measures on an annual basis to meet its responsibility to oversee the work of the Independent Auditors and to assure the auditor's independence from the Fund, such as reviewing a formal written statement from the Independent Auditors delineating all relationships between the Independent Auditors and the Fund, consistent with Independence Standards Board No. 1, and discussing with the Independent Auditors its methods and procedures for ensuring independence. 10. COVERED ENTITIES Covered Entities include the Fund's investment adviser(s) and any entity controlling, controlled by or under common control with the Fund's investment adviser(s) that provides ongoing services to the Fund(s). Beginning with non-audit service contracts entered into on or after May 6, 2003, the Fund's audit committee must pre-approve non-audit services provided not only to the Fund but also to the Covered Entities if the engagements relate directly to the operations and financial reporting of the Fund. This list of Covered Entities would include: - Van Kampen Investments Inc. - Van Kampen Asset Management - Van Kampen Advisors Inc. - Van Kampen Funds Inc. - Van Kampen Investor Services Inc. - Morgan Stanley Investment Management Inc. - Morgan Stanley Trust Company - Morgan Stanley Investment Management Ltd. - Morgan Stanley Investment Management Company - Morgan Stanley Asset & Investment Trust Management Company Ltd. (e)(2) Beginning with non-audit service contracts entered into on or after May 6, 2003, the audit committee also is required to pre-approve services to Covered Entities to the extent that the services are determined to have a direct impact on the operations or financial reporting of the Registrant. 100% of such services were pre-approved by the audit committee pursuant to the Audit Committee's pre-approval policies and procedures (included herein). (f) Not applicable. (g) See table above. (h) The audit committee of the Board of Trustees has considered whether the provision of services other than audit services performed by the auditors to the Registrant and Covered Entities is compatible with maintaining the auditors' independence in performing audit services. Item 5. Audit Committee of Listed Registrants. (a) The Fund has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act whose members are: R. Craig Kennedy, Jerry D. Choate, Rod Dammeyer. (b) Not applicable. 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-CSR 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) The Code of Ethics for Principal Executive and Senior Financial Officers is attached hereto. (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 Strategic Growth Fund By: /s/ Ronald E. Robison ------------------------------ Name: Ronald E. Robison Title: Principal Executive Officer Date: October 18, 2007 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: October 18, 2007 By: /s/ Stuart N. Schuldt ------------------------------ Name: Stuart N. Schuldt Title: Principal Financial Officer Date: October 18, 2007 EX-99.CODE 2 c18681exv99wcode.txt CODE OF ETHICS CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND SENIOR FINANCIAL OFFICERS ADOPTED JULY 23, 2003, AS AMENDED AUGUST 10, 2005, SEPTEMBER 22, 2005 AND SEPTEMBER 22, 2006 I. This Code of Ethics (the "Code") for the investment companies within the Van Kampen complex identified in Exhibit A (collectively, "Funds" and each, a "Fund") applies to each Fund's Principal Executive Officer, President, Principal Financial Officer and Treasurer (or persons performing similar functions) ("Covered Officers" each of whom are set forth in Exhibit B) for the purpose of promoting: - honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships. - full, fair, accurate, timely and understandable disclosure in reports and documents that a company files with, or submits to, the Securities and Exchange Commission ("SEC") and in other public communications made by the Fund; - compliance with applicable laws and governmental rules and regulations; - prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and - accountability for adherence to the Code. Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest. Any question about the application of the Code should be referred to the General Counsel or his/her designee (who is set forth in Exhibit C). II. COVERED OFFICERS SHOULD HANDLE ETHICALLY ACTUAL AND APPARENT CONFLICTS OF INTEREST OVERVIEW. A "conflict of interest" occurs when a Covered Officer's private interest interferes, or appears to interfere, with the interests of, or his service to, the Fund. For example, a conflict of interest would arise if a Covered Officer, or a member of his family, receives improper personal benefits as a result of his position with the Fund. Certain conflicts of interest arise out of the relationships between Covered Officers and the Fund and already are subject to conflict of interest provisions in the Investment Company Act of 1940 ("Investment Company Act") and the Investment Advisers Act of 1940 ("Investment Advisers Act"). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the Fund because of their status as "affiliated persons" (as defined in the Investment Company Act) of the Fund. The Fund's and its investment adviser's compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside the parameters of this Code, unless or until the General Counsel determines that any violation of such programs and procedures is also a violation of this Code. Although typically not presenting an opportunity for improper personal benefit, conflicts may arise from, or as a result of, the contractual relationship between the Fund and its investment adviser of which the Covered Officers are also officers or employees. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for the Fund or for the investment adviser, or for both), be involved in establishing policies and implementing decisions that will have different effects on the Fund and its investment adviser. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the Fund and the investment adviser and is consistent with the performance by the Covered Officers of their duties as officers of the Fund. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by the Funds' Boards of Directors/Trustees ("Boards") that the Covered Officers may also be officers or employees of one or more other investment companies covered by this or other codes. Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of the Fund. Each Covered Officer must not: - use his personal influence or personal relationships improperly to influence investment decisions or financial reporting by the Fund whereby the Covered Officer would benefit personally (directly or indirectly); - cause the Fund to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit of the Fund; or - use material non-public knowledge of portfolio transactions made or contemplated for, or actions proposed to be taken by, the Fund to trade personally or cause others to trade personally in contemplation of the market effect of such transactions. Each Covered Officer must, at the time of signing this Code, report to the General Counsel all affiliations or significant business relationships outside the Morgan Stanley complex and must update the report annually. Conflict of interest situations should always be approved by the General Counsel and communicated to the relevant Fund or Fund's Board. Any activity or relationship that would present such a conflict for a Covered Officer would likely also present a conflict for the Covered Officer if an immediate member of the Covered Officer's family living in the same household engages in such an activity or has such a relationship. Examples of these include: - service or significant business relationships as a director on the board of any public or private company; - accepting directly or indirectly, anything of value, including gifts and gratuities in excess of $100 per year from any person or entity with which the Fund has current or prospective business dealings, not including occasional meals or tickets for theatre or sporting events or other similar entertainment; provided it is business-related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety; - any ownership interest in, or any consulting or employment relationship with, any of the Fund's service providers, other than its investment adviser, principal underwriter, or any affiliated person thereof; and - a direct or indirect financial interest in commissions, transaction charges or spreads paid by the Fund for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer's employment, such as compensation or equity ownership. III. DISCLOSURE AND COMPLIANCE - Each Covered Officer should familiarize himself/herself with the disclosure and compliance requirements generally applicable to the Funds; - each Covered Officer must not knowingly misrepresent, or cause others to misrepresent, facts about the Fund to others, whether within or outside the Fund, including to the Fund's Directors/Trustees and auditors, or to governmental regulators and self-regulatory organizations; - each Covered Officer should, to the extent appropriate within his area of responsibility, consult with other officers and employees of the Funds and their investment advisers with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Funds file with, or submit to, the SEC and in other public communications made by the Funds; and - it is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations. IV. REPORTING AND ACCOUNTABILITY Each Covered Officer must: - upon adoption of the Code (thereafter as applicable, upon becoming a Covered Officer), affirm in writing to the Boards that he has received, read and understands the Code; - annually thereafter affirm to the Boards that he has complied with the requirements of the Code; - not retaliate against any other Covered Officer, other officer or any employee of the Funds or their affiliated persons for reports of potential violations that are made in good faith; and - notify the General Counsel promptly if he/she knows or suspects of any violation of this Code. Failure to do so is itself a violation of this Code. The General Counsel is responsible for applying this Code to specific situations in which questions are presented under it and has the authority to interpret this Code in any particular situation. However, any waivers(3) sought by a Covered Officer must be considered by the Board of the relevant Fund or Funds. The Funds will follow these procedures in investigating and enforcing this Code: - the General Counsel will take all appropriate action to investigate any potential violations reported to him; - if, after such investigation, the General Counsel believes that no violation has occurred, the General Counsel is not required to take any further action; - any matter that the General Counsel believes is a violation will be reported to the relevant Fund's Audit Committee; - if the directors/trustees/managing general partners who are not "interested persons" as defined by the Investment Company Act (the "Independent Directors/Trustees/Managing General Partners") of the relevant Fund concur that a violation has occurred, they will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of the investment adviser or its board; or a recommendation to dismiss the Covered Officer or other appropriate disciplinary actions; - the Independent Directors/Trustees/Managing General Partners of the relevant Fund will be responsible for granting waivers of this Code, as appropriate; and - any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules. V. OTHER POLICIES AND PROCEDURES This Code shall be the sole code of ethics adopted by the Funds for purposes of Section 406 of the Sarbanes-Oxley Act of 2002 and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the Funds, the Funds' investment advisers, principal underwriters, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code unless any provision of this Code conflicts with any applicable federal or state law, in which case the requirements of such law will govern. The Funds' and their investment advisers' and principal underwriters' codes of ethics under Rule 17j-1 under the Investment Company Act and Morgan Stanley's Code of Ethics are separate requirements applying to the Covered Officers and others, and are not part of this Code. VI. AMENDMENTS Any amendments to this Code, other than amendments to Exhibits A, B or C, must be approved or ratified by a majority vote of the Board of each Fund, including a majority of Independent Directors/Trustees/Managing General Partners. VII. CONFIDENTIALITY - ---------- (3) Item 2 of Form N-CSR defines "waiver" as "the approval by the registrant of a material departure from a provision of the code of ethics." All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Independent Directors/Trustees/Managing General Partners of the relevant Fund or Funds and their counsel, the relevant Fund or Funds and their counsel and the relevant investment adviser and its counsel. VIII. INTERNAL USE The Code is intended solely for the internal use by the Funds and does not constitute an admission, by or on behalf of any Fund, as to any fact, circumstance, or legal conclusion I have read and understand the terms of the above Code. I recognize the responsibilities and obligations incurred by me as a result of my being subject to the Code. I hereby agree to abide by the above Code. - -------------------------- Date: -------------------- EXHIBIT B COVERED OFFICERS Ronald E. Robison - President and Principal Executive Officer Stuart N. Schuldt - Chief Financial Officer and Treasurer EXHIBIT B (PRIOR TO JUNE 4, 2007) COVERED OFFICERS Ronald E. Robison - President and Principal Executive Officer James Garrett - Chief Financial Officer and Treasurer EXHIBIT B (PRIOR TO NOVEMBER 15, 2006) COVERED OFFICERS Ronald E. Robison - President and Principal Executive Officer Phillip G. Goff - Chief Financial Officer and Treasurer EXHIBIT C GENERAL COUNSEL'S DESIGNEE Arthur Lev EXHIBIT C (PRIOR TO DECEMBER 1, 2006) GENERAL COUNSEL'S DESIGNEE Barry Fink EXHIBIT C (PRIOR TO OCTOBER 1, 2006) GENERAL COUNSEL'S DESIGNEE Amy Doberman EX-99.CERT 3 c18681exv99wcert.txt CERTIFICATION I, Ronald E. Robison, certify that: 1. I have reviewed this report on Form N-CSR of Van Kampen Strategic Growth 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: October 18, 2007 /s/ Ronald E. Robison ---------------------------------------- Principal Executive Officer I, Stuart N. Schuldt, certify that: 1. I have reviewed this report on Form N-CSR of Van Kampen Strategic Growth 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: October 18, 2007 /s/ Stuart N. Schuldt ---------------------------------------- Principal Financial Officer EX-99.906CERT 4 c18681exv99w906cert.txt 906 CERTIFICATION 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 Strategic Growth Fund In connection with the Report on Form N-CSR (the "Report") of the above-named issuer for the period ended August 31, 2007 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: October 18, 2007 /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 Strategic Growth Fund and will be retained by Van Kampen Strategic Growth 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 Strategic Growth Fund In connection with the Report on Form N-CSR (the "Report") of the above-named issuer for the period ended August 31, 2007 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: October 18, 2007 /s/ Stuart N. Schuldt ---------------------------------------- Stuart N. Schuldt Principal Financial Officer A signed original of this written statement required by Section 906 has been provided to Van Kampen Strategic Growth Fund and will be retained by Van Kampen Strategic Growth 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-----