-----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, Ct9w4RPo7Tcl52LBZg0IadpdXqupGEixWGp99SSVUla3uq6u7XARDaQJAqbHxj0U hy7WPTHb1BdFPLhM4r6XOg== 0000950137-04-005327.txt : 20040629 0000950137-04-005327.hdr.sgml : 20040629 20040629151143 ACCESSION NUMBER: 0000950137-04-005327 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040430 FILED AS OF DATE: 20040629 EFFECTIVENESS DATE: 20040629 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VAN KAMPEN TRUST FOR INVSTMENT GRADE MUNICIPALS CENTRAL INDEX KEY: 0000880892 IRS NUMBER: 363797841 STATE OF INCORPORATION: MA FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-06471 FILM NUMBER: 04888416 BUSINESS ADDRESS: STREET 1: ONE PARKVIEW PLAZA STREET 2: VAN KAMPEN INVESTMENTS INC CITY: OAKBROOK TERRACE STATE: IL ZIP: 60181 BUSINESS PHONE: 6306846774 MAIL ADDRESS: STREET 1: VAN KAMPEN INVESTMENTS INC STREET 2: ONE PARKVIEW PLAZA CITY: OAKBROOK TERRACE STATE: IL ZIP: 60181 FORMER COMPANY: FORMER CONFORMED NAME: VAN KAMPEN AMERICAN CAPITAL TR FOR INVSTMNT GRADE MUNICIPALS DATE OF NAME CHANGE: 19960102 FORMER COMPANY: FORMER CONFORMED NAME: VAN KAMPEN MERRITT TRUST FOR INVESTMENT GRADE MUNICIPALS DATE OF NAME CHANGE: 19920929 N-CSRS 1 c85434nvcsrs.txt SEMIANNUAL 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 811-6471 Van Kampen Trust For Investment Grade Municipals - -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) 1221 Avenue of the Americas, New York, New York 10020 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Ronald Robison 1221 Avenue of the Americas, New York, New York 10020 - -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 212-762-4000 Date of fiscal year end: 10/31 Date of reporting period: 4/30/04 Item 1. Report to Shareholders. The Trust's semi-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 Trust for Investment Grade Municipals performed during the semiannual period. The portfolio management team will provide an overview of the market conditions and discuss some of the factors that affected investment performance during the reporting period. In addition, this report includes the trust's financial statements and a list of trust investments as of April 30, 2004. Market forecasts provided in this report may not necessarily come to pass. There is no assurance that the trust will achieve its investment objective. Trusts are subject to market risk, which is the possibility that the market values of securities owned by the trust will decline and that the value of trust shares may therefore be less than what you paid for them. Accordingly, you can lose money investing in this trust. Income may subject certain individuals to the federal Alternative Minimum Tax (AMT).
--------------------------------------------------------------------------------------- NOT FDIC INSURED OFFER NO BANK GUARANTEE MAY LOSE VALUE --------------------------------------------------------------------------------------- NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY NOT A DEPOSIT ---------------------------------------------------------------------------------------
Performance Summary as of 4/30/04
TRUST FOR INVESTMENT GRADE MUNICIPALS SYMBOL: VGM - ------------------------------------------------------ AVERAGE ANNUAL BASED ON BASED ON TOTAL RETURNS NAV MARKET PRICE Since Inception (01/24/92) 8.24% 6.94% 10-year 7.85 6.64 5-year 6.89 4.71 1-year 2.04 -4.19 6-month 1.02 -3.80 - ------------------------------------------------------
Past performance is no guarantee of future results. Investment return, net asset value (NAV) and common share market price will fluctuate and trust shares, when sold, may be worth more or less than their original cost. As a result of recent market activity, current performance may vary from the figures shown. For more up-to-date information, please visit vankampen.com or speak with your financial advisor. NAV per share is determined by dividing the value of the trust's portfolio securities, cash and other assets, less all liabilities, by the total number of common shares outstanding. The common share market price is the price the market is willing to pay for shares of the trust at a given time. Common share market price is influenced by a range of factors, including supply and demand and market conditions. Total return assumes an investment at the beginning of the period, reinvestment of all distributions for the period in accordance with the trust's dividend reinvestment plan, and sale of all shares at the end of the period. The Lehman Brothers Municipal Bond Index is broad-based statistical composite of municipal bonds. 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. 1 Trust Report FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2004 Van Kampen Trust for Investment Grade Municipals is managed by the adviser's Municipal Fixed Income team.(1) Current members include Thomas Byron, Vice President; Robert Wimmel, Vice President; and John Reynoldson, Executive Director. MARKET CONDITIONS The state of the U.S. economy remained mixed over the six-month period under review. On the positive side, economic growth continued to be robust, with Gross Domestic Product growth topping 4 percent in both the last quarter of 2003 and, preliminarily, the first quarter of this year. While this strength in output has historically triggered fears of rising interest rates, yields remained stubbornly low across the municipal curve. These low yields were partly the result of the continued low levels of observed inflation in the U.S. economy. Unfortunately, they also reflected continuing weakness in the job market, which remained soft throughout the period. The soft job numbers, coupled with persistently low inflation, led the Federal Open Market Committee (the Fed) to maintain its accommodative stance throughout the period. The surprisingly rapid job growth data released in April, coupled with rapidly rising commodity and high oil prices, led many investors to fear that the Fed would be forced to raise interest rates earlier than the market initially expected. As a result, bond yields across all major sectors spiked in April. Supply of new municipal bonds in calendar 2003 hit record levels as municipalities moved to take advantage of historically low interest rates. Many cities and states sought to reduce expenditures by refinancing existing debt and replacing it with lower-yielding bonds. In other cases, municipalities attempted to meet current and future funding needs by issuing new debt. This activity slowed in the first months of 2004. The low interest rates that prevailed over much of the period also had an impact on the demand for municipal bonds. Retail and institutional investor activity slowed as holders of municipal bonds saw little reason to sell bonds purchased at higher yield levels and reinvest at lower yields. However, the period was marked by rising activity among non-traditional investors, such as hedge funds and insurance companies seeking to take advantage of the attractiveness of municipal bonds relative to some taxable securities. Additionally, investors' search for yield led to significant outperformance by lower-rated bonds with greater credit risk. Sectors such as health care, with a preponderance of lower-rated issues, performed particularly well. (1)Team members may change without notice at any time. 2 PERFORMANCE ANALYSIS Closed-end fund returns can be calculated based upon either the market price or the net asset value (NAV) of its shares. NAV per share is determined by dividing the value of the trust's portfolio securities, cash and other assets, less all liabilities, by the total number of common shares outstanding, while market price reflects the supply and demand for the shares. As a result, the two returns can differ significantly. On both an NAV basis and a market-price basis, the trust underperformed its benchmark, the Lehman Brothers Municipal Bond Index. (See table below.) The trust uses leverage to enhance its dividend to common shareholders. The trust borrows money at short-term rates through the issuance of preferred shares. The proceeds are typically reinvested in longer-term securities, taking advantage of the difference between short- and longer-term rates. As yields rose toward the end of the period, the prices of bonds declined. The trust's use of leverage magnified this negative movement, leading to a slightly lower total return at NAV than that of its benchmark, which is not leveraged. Our analysis of the macroeconomic environment, coupled with the levels of interest rates near multi-decade lows, led us to believe that interest rates were more likely to rise than to fall further. As a result, we kept the trust's duration (a measure of interest-rate sensitivity) below that of its benchmark in order to limit the potentially damaging impact of any increase in interest rates. This approach hampered the trust's returns as interest rates fell for much of the period; however, it helped to buoy returns when interest rates soared in the final weeks of the period. The trust's performance was also modestly hampered by its bias, relative to the benchmark, toward high-quality securities. Municipal bond investors during the period responded to the improving economy by reducing the yield spreads between higher- and lower-rated bonds (yield spreads reflect the premium demanded by Investors to buy lower-rated bonds). As a result, lower-quality bonds outperformed. The portfolio had approximately 88 percent exposure to bonds rated AA/Aa or higher at the end of the period. We adjusted the portfolio's term structure in anticipation of rising interest rates. Our research showed that the intermediate portion of the curve offered the most promising total-return potential. As a result, we focused our purchases on TOTAL RETURN FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2004
- ---------------------------------------------------------- BASED ON BASED ON LEHMAN BROTHERS NAV MARKET PRICE MUNICIPAL BOND INDEX 1.02% -3.80% 1.19% - ----------------------------------------------------------
Past performance is no guarantee of future results. Investment return, net asset value and common share market price will fluctuate and trust shares, when sold, may be worth more or less than their original cost. See Performance Summary for additional performance information and index definition. 3 the 14- to 19-year segment of the curve. Many of the securities we identified had the added appeal of premium coupons and 10-year call dates, which served to add income to the portfolio while limiting its interest-rate exposure. Our trading activity during the period was well below traditional norms because we wanted to avoid having to reinvest into securities with low yields. That said, we were able to make selective relative-value trades among securities and sectors as they moved into and out of fair value. Some of these acquisitions were funded by the sale of securities at the short end of the yield curve, which our analysis showed to be vulnerable to rising rates. In other cases we sold bonds that met their performance objectives. We reinvested this cash into securities with more promising total-return characteristics. The trust's portfolio remained well diversified during the period, with its holdings spread across many major municipal-bond sectors. We believe this long-standing strategy helps to minimize the risk of over-concentration in any single sector, while also giving the portfolio exposure to as many potential sources of return as possible. The three largest sector exposures at the end of the period were general purpose, public education and higher education. As mentioned above, the portfolio's below-market duration served it well in the final weeks of the period, when interest rates rose sharply. While it is impossible to predict how long this trend will hold, we believe that the trust is well positioned to weather further increases in rates. We look forward to becoming more active in seeking attractive structures and relative-value trading opportunities now that rates have moved into a more normal range. TOP 5 SECTORS AS OF 4/30/04 RATINGS ALLOCATIONS AS OF 4/30/04 General Purpose 23.5% AAA/Aaa 79.7% Public Education 11.4 AA/Aa 8.7 Higher Education 9.1 A/A 8.4 Transportation 8.7 BBB/Baa 2.3 Health Care 8.3 BB/Ba 0.3 B/B 0.2 Non-Rated 0.4
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 sectors shown above. All percentages are as a percentage of long-term investments. Securities are classified by sectors that represent broad groupings of related industries. Ratings allocations based upon ratings as issued by Standard and Poor's and Moody's. 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. 4 PROXY VOTING POLICIES AND PROCEDURES A description of the trust's policies and procedures with respect to the voting of proxies relating to the trust's portfolio securities is available without charge, upon request, by calling 1-800-847-2424. This information is also available on the Securities and Exchange Commission's website at http://www.sec.gov. 5 VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED)
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - ---------------------------------------------------------------------------------------------- MUNICIPAL BONDS 156.9% ALABAMA 1.4% $ 750 Birmingham Baptist Med Ctr AL Baptist Hlth Sys Ser A.................................. 5.875% 11/15/24 $ 785,857 1,565 Jefferson Cnty, AL Swr Rev Impt Wts Ser A (Prerefunded @ 02/01/11) (FGIC Insd)....... 5.000 02/01/41 1,711,265 435 Jefferson Cnty, AL Swr Rev Impt Wts Ser A (Prerefunded @ 02/01/11) (FGIC Insd)....... 5.000 02/01/41 478,130 3,000 Jefferson Cnty, AL Wts Ser A (AMBAC Insd)...................................... 5.000 04/01/09 3,267,450 ------------- 6,242,702 ------------- ARIZONA 2.4% 4,225 Arizona Tourism & Sports Auth Multipurpose Stadium Fac Ser A (MBIA Insd).............. 5.375 07/01/23 4,462,572 2,800 Phoenix, AZ Civic Impt Corp Arpt Rev Jr Lien (FGIC Insd) (AMT)..................... 5.375 07/01/29 2,821,560 3,125 Salt River Proj AZ Agric Impt Salt River Proj Ser A Rfdg............................ 5.250 01/01/06 3,299,594 ------------- 10,583,726 ------------- CALIFORNIA 12.9% 2,895 ABC CA Uni Sch Dist Cap Apprec Ser B (FGIC Insd)...................................... * 08/01/20 1,253,911 1,300 Anaheim, CA Pub Fin Auth Lease Rev Pub Impt Proj Ser C (FSA Insd)...................... 6.000 09/01/16 1,508,286 3,000 California St (AMBAC Insd)................. 5.125 10/01/27 3,009,270 1,000 California St Dept Wtr Res Pwr Ser A....... 6.000 05/01/15 1,106,170 2,000 California St Dept Wtr Res Pwr Ser A (AMBAC Insd)...................................... 5.500 05/01/16 2,182,960 4,000 California St Dept Wtr Res Pwr Ser A (AMBAC Insd)...................................... 5.375 05/01/18 4,285,800 1,320 California St Dept Wtr Res Pwr Ser A (MBIA Insd)...................................... 5.125 05/01/19 1,372,087 1,000 California St Pub Wks Brd UCLA Replacement Hosp Ser A (FSA Insd)...................... 5.375 10/01/20 1,059,640 2,000 El Dorado, CA Irr Dist Ctfs Ser A (FGIC Insd)...................................... 5.000 03/01/21 2,036,340 2,000 Florin, CA Res Consv Dist Cap Impt Elk Grove Wtr Svc A (MBIA Insd)................ 5.000 09/01/33 1,983,140 3,000 Florin, CA Res Consv Dist Cap Impt Elk Grove Wtr Svc B (MBIA Insd)................ 5.000 03/01/33 2,974,890 2,000 Foothill/Eastern Corridor Agy CA Toll Rd Rev Cap Apprec Rfdg (MBIA Insd)............ * 01/15/17 1,021,940 20,750 Foothill/Eastern Corridor Agy CA Toll Rd Rev Sr Lien Ser A (Escrowed to Maturity)... * 01/01/23 7,907,202 3,000 Fremont, CA Uni Sch Dist Ser A (FGIC Insd)...................................... 5.000 08/01/25 3,020,760 2,500 Los Angeles, CA Uni Sch Dist Ser A (FSA Insd)...................................... 5.250 07/01/20 2,644,250 4,020 Oakland, CA Uni Sch Dist (FGIC Insd)....... 5.250 08/01/18 4,249,783
6 See Notes to Financial Statements VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - ---------------------------------------------------------------------------------------------- CALIFORNIA (CONTINUED) $ 3,000 Port Oakland, CA Ser M (FGIC Insd)......... 5.250% 11/01/18 $ 3,179,700 2,000 Salinas, CA Uni High Sch Dist Ser A (MBIA Insd)...................................... 5.000 06/01/27 2,006,440 3,000 San Francisco, CA City & Cnty Second Ser Issue 29 B Rfdg (FGIC Insd)................ 5.125 05/01/20 3,111,660 1,210 Santa Clara, CA Elec Rev Sub Ser A (MBIA Insd)...................................... 5.250 07/01/19 1,283,556 3,745 Santa Clarita, CA Cmnty College (FGIC Insd)...................................... 5.000 08/01/23 3,804,208 3,000 Temecula, CA Redev Agy Tax Temecula Redev Proj No 1 (MBIA Insd)...................... 5.250 08/01/36 3,025,830 ------------- 58,027,823 ------------- COLORADO 2.6% 4,000 Adams & Arapahoe Cntys CO Sch Dist 28 Ser A (FSA Insd)................................. 5.250 12/01/20 4,252,160 1,000 Arapahoe Cnty, CO Cap Impt Tr Fd Hwy Rev E-470 Proj Ser B (Prerefunded @ 08/31/05).................................. 6.950 08/31/20 1,101,510 2,000 Aurora, CO Ctfs Part (AMBAC Insd).......... 5.500 12/01/30 2,079,300 1,000 Colorado Hlth Fac Auth Rev Catholic Hlth Initiatives Ser A.......................... 5.500 03/01/32 1,025,820 1,125 Colorado Hlth Fac Auth Rev Hosp Portercare Adventist Hlth............................. 6.500 11/15/31 1,220,400 76 Colorado Hsg Fin Auth Single Family Pgm Sr Ser B1 (AMT)............................... 7.650 11/01/26 77,909 1,805 Lakewood, CO Ctfs Part (AMBAC Insd)........ 5.300 12/01/16 1,935,736 ------------- 11,692,835 ------------- CONNECTICUT 1.1% 2,750 Bridgeport, CT Ser A Rfdg (FGIC Insd)...... 5.375 08/15/14 2,995,190 1,830 Connecticut St Spl Oblig Pkg Rev Bradley Intl Arpt Ser A (AMT) (ACA Insd)........... 6.600 07/01/24 1,964,194 ------------- 4,959,384 ------------- DISTRICT OF COLUMBIA 1.0% 2,000 District of Columbia Rev Friendship Pub Charter Sch Inc (ACA Insd)................. 5.750 06/01/18 2,126,560 505 District of Columbia Ser E (Prerefunded @ 06/01/03) (FSA Insd)....................... 6.000 06/01/13 516,857 2,000 Metropolitan Washington DC Arpt Auth Sys Ser A (AMT) (FGIC Insd).................... 5.250 10/01/32 2,005,300 ------------- 4,648,717 -------------
See Notes to Financial Statements 7 VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - ---------------------------------------------------------------------------------------------- FLORIDA 10.3% $10,335 Dade Cnty, FL Spl Oblig Cap Apprec Ser B Rfdg (Prerefunded @ 10/01/08) (AMBAC Insd)...................................... * 10/01/26 $ 2,995,806 3,000 Escambia Cnty, FL Hlth Fac Auth Hlth Fac Rev FL Hlthcare Fac Ln (AMBAC Insd)........ 5.950% 07/01/20 3,133,920 2,500 Florida St Brd Ed Cap Outlay Pub Ed Ser C (FGIC Insd)................................ 5.750 06/01/29 2,690,500 1,000 Florida St Brd Ed Lottery Rev Ser A (FGIC Insd)...................................... 6.000 07/01/14 1,139,090 1,400 Florida St Dept Corrections Ctf Part Okeechobee Correctional (AMBAC Insd)....... 6.250 03/01/15 1,477,882 1,200 Gulf Breeze, FL Rev Loc Govt Ln E (FGIC Insd) (a).................................. 5.050 12/01/20 1,270,452 1,900 Gulf Breeze, FL Rev Loc Govt Ln E (FGIC Insd) (a).................................. 5.150 12/01/20 2,073,584 1,000 Highlands Cnty, FL Hlth Fac Auth Rev Hosp Adventist Hlth Sys Ser D................... 5.375 11/15/35 1,003,300 4,550 Hillsborough Cnty, FL Sch Dist (AMBAC Insd)...................................... 5.375 10/01/17 4,901,123 2,000 Jacksonville, FL Sales Tax Rev Better Jacksonville (MBIA Insd)................... 5.250 10/01/19 2,129,080 1,000 Jea, FL Elec Sys Rev Ser 3 Ser A........... 5.500 10/01/41 1,024,420 2,000 Miami-Dade Cnty, FL Aviation Miami Intl Arpt (FGIC Insd)........................... 5.375 10/01/27 2,045,840 2,000 Miami-Dade Cnty, FL Aviation Ser A (FSA Insd) (AMT)................................ 5.125 10/01/35 1,986,920 2,000 Miami-Dade Cnty, FL Hlth Fac Miami Children Hosp Ser A Rfdg (AMBAC Insd)............... 5.000 08/15/20 2,037,240 1,980 Miami-Dade, FL Sch Brd Ser C (FSA Insd).... 5.500 10/01/13 2,189,306 2,000 Palm Beach Cnty, FL Sch Brd Ctf Ser E Rfdg (AMBAC Insd)............................... 5.250 08/01/11 2,210,900 1,655 Reedy Creek Impt Dist FL Ser A Rfdg (AMBAC Insd)...................................... 5.500 06/01/11 1,856,116 3,465 Reedy Creek Impt Dist FL Ser C (AMBAC Insd)...................................... 4.750 06/01/15 3,511,535 1,210 Saint Lucie Cnty, FL Sch Brd Ctf Ser A (FSA Insd)...................................... 5.500 07/01/14 1,329,052 1,000 Tallahassee, FL Lease Rev FL St Univ Proj Ser A (MBIA Insd).......................... 5.500 08/01/17 1,087,570
8 See Notes to Financial Statements VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - ---------------------------------------------------------------------------------------------- FLORIDA (CONTINUED) $ 1,250 Tampa, FL Hosp Rev Cap Impt H Lee Moffitt Ser A...................................... 5.750% 07/01/19 $ 1,303,862 2,880 Tampa, FL Occupational License Ser A Rfdg (FGIC Insd)................................ 5.375 10/01/15 3,133,786 ------------- 46,531,284 ------------- GEORGIA 2.9% 1,500 George L Smith II GA World Congress Cent Auth Rev Domed Stadium Proj Rfdg (MBIA Insd) (AMT)................................ 5.500 07/01/20 1,565,535 5,660 Georgia Muni Elec Auth Pwr Rev Ser Y (MBIA Insd)...................................... 6.500 01/01/17 6,702,006 240 Georgia Muni Elec Auth Pwr Rev Ser Y (Escrowed to Maturity) (MBIA Insd)......... 6.500 01/01/17 287,213 4,000 Municipal Elec Auth GA Combustion Turbine Proj Ser A (MBIA Insd)..................... 5.250 11/01/16 4,278,520 ------------- 12,833,274 ------------- HAWAII 0.3% 1,285 Honolulu, HI City & Cnty Ser B (FGIC Insd)...................................... 5.500 10/01/11 1,440,472 ------------- ILLINOIS 16.5% 2,000 Bedford Park, IL Ser A Rfdg (FSA Insd) (b)........................................ 5.250 12/15/20 2,115,940 2,000 Chicago, IL Brd of Ed (Prerefunded @ 12/01/10) (FGIC Insd)...................... 5.500 12/01/31 2,258,120 2,000 Chicago, IL Brd of Ed Chicago Sch Reform (Prerefunded @ 12/01/07) (AMBAC Insd)...... 5.750 12/01/20 2,266,700 4,865 Chicago, IL Cap Apprec (Prerefunded @ 07/01/05) (AMBAC Insd)..................... * 07/01/16 2,380,444 1,500 Chicago, IL Lakefront Millennium Pk Facs (MBIA Insd)................................ 5.125 01/01/28 1,511,100 7,000 Chicago, IL O'Hare Intl Arpt Rev Gen Arpt Second Lien Ser A Rfdg (MBIA Insd)......... 6.375 01/01/12 7,344,400 1,500 Chicago, IL O'Hare Intl Arpt Rev Gen Arpt Third Lien C-2 Rfdg (XLCA Insd) (AMT)...... 5.250 01/01/34 1,503,840 2,000 Chicago, IL O'Hare Intl Arpt Rev Second Lien Passenger Fac B (AMBAC Insd).......... 5.500 01/01/17 2,153,420 3,500 Chicago, IL Proj Ser A Rfdg (MBIA Insd) (c)........................................ 5.000 01/01/31 3,471,720 2,000 Chicago, IL Wastewtr Transmission Rev Second Lien (MBIA Insd).................... 5.750 01/01/25 2,142,900 1,000 Chicago, IL Wastewtr Transmission Rev Second Lien (Prerefunded @ 01/01/10) (MBIA Insd)...................................... 6.000 01/01/30 1,152,710 2,870 Cook Cnty, IL Cap Impt Ser A (FGIC Insd)... 5.000 11/15/28 2,861,074 3,500 Du Page Cnty, IL Fst Presv Dist............ * 11/01/10 2,735,845 2,545 Du Page Cnty, IL Trans Rev (FSA Insd)...... 5.750 01/01/15 2,817,722 805 East Peoria, IL Ser C Rfdg................. 7.000 05/01/17 841,064 1,310 Elgin, IL Ser B Rfdg....................... 5.750 12/15/13 1,486,876
See Notes to Financial Statements 9 VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - ---------------------------------------------------------------------------------------------- ILLINOIS (CONTINUED) $ 1,600 Grundy, Kendall, & Will Cntys (AMBAC Insd)...................................... 5.500% 05/01/15 $ 1,723,552 1,250 Illinois Dev Fin Auth Rev Bradley Univ Proj (Prerefunded @ 08/01/09) (AMBAC Insd)...... 5.375 08/01/24 1,402,487 1,475 Illinois Dev Fin Auth Rev Loc Govt Pgm Geneva Cmnty 304 B (FSA Insd).............. 5.750 01/01/15 1,635,731 1,145 Illinois Dev Fin Auth Rev Loc Govt Pgm Geneva Cmnty 304 B (FSA Insd).............. 5.750 01/01/17 1,267,229 3,285 Illinois Dev Fin Auth Rev Presbyterian Home Lake Proj Ser B (FSA Insd)................. 6.300 09/01/22 3,605,222 2,000 Illinois Ed Fac Auth Rev Lewis Univ........ 6.100 10/01/16 1,999,020 1,250 Illinois Hlth Fac Auth Rev Evangelical Hosp Ser C (FSA Insd)........................... 6.750 04/15/17 1,498,987 700 Illinois Hlth Fac Auth Rev Highland Park Hosp Proj Ser A (Prerefunded @ 10/01/07) (MBIA Insd)................................ 5.750 10/01/17 790,048 2,000 Illinois Hlth Fac Auth Rev OSF Hlthcare Sys Rfdg....................................... 6.000 11/15/10 2,051,580 2,275 Illinois Hlth Fac Auth Rev South Suburban Hosp (Escrowed to Maturity)................ 7.000 02/15/18 2,778,776 1,000 Illinois St (FGIC Insd).................... 5.250 12/01/20 1,053,700 2,000 Illinois St First Ser (FGIC Insd).......... 5.375 11/01/14 2,181,060 2,000 Illinois St Sales Tax Rev Build Illinois... 5.000 06/15/19 2,068,160 1,000 Illinois St Sales Tax Rev Build Illinois... 5.000 06/15/23 1,012,230 250 Metropolitan Pier & Expo Auth IL Dedicated St Tax Rev McCormick Pl Expn Proj (FGIC Insd)...................................... 5.375 12/15/18 267,130 8,845 Metropolitan Pier & Expo Auth IL Dedicated St Tax Rev McCormick Pl Expn Ser A (FGIC Insd)...................................... * 06/15/16 4,923,746 3,000 Metropolitan Pier & Expo Auth IL Dedicated St Tax Rev McCormick Pl Expn Ser A (MBIA Insd)...................................... 5.250 06/15/42 3,046,530 1,005 Naperville, IL Ser A....................... 5.000 12/01/10 1,097,721 1,105 Saint Clair Cnty, IL Pub Bldg Comm Bldg Rev Cap Apprec Ser B (FGIC Insd)............... * 12/01/15 637,806 1,000 Southern IL Univ Rev Cap Apprec Hsg & Aux (MBIA Insd)................................ * 04/01/29 246,460 ------------- 74,331,050 -------------
10 See Notes to Financial Statements VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - ---------------------------------------------------------------------------------------------- INDIANA 3.7% $ 2,000 Indiana Transn Fin Auth Toll Rd Lease Rev Rfdg (AMBAC Insd).......................... 5.375% 07/01/09 $ 2,166,520 4,500 Indianapolis, IN Arpt Auth Rev Spl Fac Fed Express Corp Proj (AMT).................... 7.100 01/15/17 4,631,850 1,935 Logansport, IN Sch Bldg Corp First Mtg (FGIC Insd)................................ 5.500 07/15/13 2,129,332 1,000 Marion Cnty, IN Convention & Rec Fac Auth Excise Tax Rev (MBIA Insd)................. * 06/01/14 627,750 1,200 North Adams, IN Cmnty Schs Renovation Bldg Corp Cap Apprec First Mtg (FSA Insd)....... * 07/15/15 704,388 1,280 North Adams, IN Cmnty Schs Renovation Bldg Corp Cap Apprec First Mtg (FSA Insd)....... * 01/15/19 607,642 1,500 Petersburg, IN Pollutn Ctl Rev IN Pwr & Lt (AMT)...................................... 5.950 12/01/29 1,507,530 1,605 Richland Beanblossom, IN Sch First Mtg (Prerefunded @ 07/15/11) (FGIC Insd)....... 5.500 07/15/12 1,808,081 2,530 Vigo Cnty, IN Sch Bldg Corp First Mtg Impt & Rfdg (FSA Insd).......................... 5.250 07/10/24 2,596,387 ------------- 16,779,480 ------------- IOWA 0.9% 1,685 Des Moines, IA Pub Pkg Sys Ser A (FGIC Insd)...................................... 5.750 06/01/15 1,876,888 1,785 Des Moines, IA Pub Pkg Sys Ser A (FGIC Insd)...................................... 5.750 06/01/16 1,987,758 ------------- 3,864,646 ------------- KANSAS 1.0% 1,975 Sedgwick Cnty, KS Uni Sch Dist No 259 Wichita (MBIA Insd)........................ 6.000 09/01/09 2,253,337 2,000 Wyandotte Cnty, KS Sch Dist 500 Rfdg (FSA Insd)...................................... 5.000 09/01/19 2,090,640 ------------- 4,343,977 ------------- KENTUCKY 1.8% 1,500 Kenton Cnty, KY Arpt Brd Rev Cincinnati/ Northn KY Intl Arpt Ser A Rfdg (AMT) (MBIA Insd)...................................... 6.250 03/01/09 1,669,320 1,000 Kenton Cnty, KY Arpt Brd Rev Cincinnati/ Northn KY Intl Arpt Ser A Rfdg (AMT) (MBIA Insd)...................................... 6.200 03/01/08 1,109,190 1,500 Kentucky St Ppty & Bldg Proj No 69 Ser A... 5.000 08/01/05 1,565,415
See Notes to Financial Statements 11 VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - ---------------------------------------------------------------------------------------------- KENTUCKY (CONTINUED) $ 1,000 Kentucky St Tpk Auth Econ Dev Revitalization Proj Rfdg (FSA Insd)........ 5.625% 07/01/14 $ 1,108,560 2,450 Louisville & Jefferson Cnty, KY Swr Ser A (MBIA Insd)................................ 5.500 05/15/16 2,669,593 ------------- 8,122,078 ------------- MARYLAND 1.3% 1,250 Maryland St Hlth & Higher Ed Fac Auth Rev Medstar Health Rfdg........................ 5.375 08/15/24 1,216,775 2,250 Maryland St Trans Auth Arpt Baltimore/Wash Intl Arpt B (AMT) (AMBAC Insd)............. 5.125 03/01/24 2,274,097 2,350 Northeast, MD Waste Disp Auth Rfdg (AMT) (AMBAC Insd)............................... 5.500 04/01/16 2,509,424 ------------- 6,000,296 ------------- MASSACHUSETTS 3.4% 2,625 Massachusetts Muni Whsl Elec Co Pwr Supply Sys Rev Ser A (Prerefunded @ 07/01/04) (AMBAC Insd)............................... 5.000 07/01/14 2,694,379 5,000 Massachusetts St Cons Ln Ser E (Prerefunded @ 01/01/13) (FSA Insd)..................... 5.250 01/01/20 5,471,050 1,500 Massachusetts St Fed Hwy Grant Antic Nt Ser A.......................................... 5.750 06/15/14 1,700,715 500 Massachusetts St Hlth & Ed Fac Auth Rev Hlthcare Sys Covenant Hlth................. 6.000 07/01/31 523,195 1,000 Massachusetts St Hlth & Ed Fac Auth Rev Partn Hlthcare Sys Ser C................... 5.750 07/01/32 1,046,650 1,000 Massachusetts St Indl Fin Agy Rev Wentworth Institute Tech............................. 5.650 10/01/18 1,033,610 2,805 Massachusetts St Port Auth Rev Ser A (MBIA Insd)...................................... 5.000 07/01/22 2,859,585 ------------- 15,329,184 -------------
12 See Notes to Financial Statements VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - ---------------------------------------------------------------------------------------------- MICHIGAN 5.7% $ 3,015 Detroit, MI Downtown Dev Auth Tax Increment Rev Ser C1................................. * 07/01/17 $ 1,488,897 3,050 Detroit, MI Downtown Dev Auth Tax Increment Rev Ser C1................................. * 07/01/18 1,413,888 3,050 Detroit, MI Downtown Dev Auth Tax Increment Rev Ser C1................................. * 07/01/19 1,327,421 3,050 Detroit, MI Downtown Dev Auth Tax Increment Rev Ser C1................................. * 07/01/22 1,073,600 3,050 Detroit, MI Downtown Dev Auth Tax Increment Rev Ser C1................................. * 07/01/23 996,801 3,050 Detroit, MI Downtown Dev Auth Tax Increment Rev Ser C1................................. * 07/01/24 923,875 2,965 Detroit, MI Wtr Supply Sys Ser C (MBIA Insd)...................................... 5.250% 07/01/20 3,124,695 3,500 Grand Rapids, MI Downtown Dev Cap Apprec (MBIA Insd)................................ * 06/01/15 2,091,215 2,765 Grand Rapids, MI Downtown Dev Cap Apprec (MBIA Insd)................................ * 06/01/16 1,562,253 1,000 Grand Rapids, MI Wtr Supply Sys Rfdg (FGIC Insd)...................................... 5.750 01/01/13 1,115,120 1,400 Hillsdale, MI Hosp Fin Auth Hosp Rev Hillsdale Cmnty Hlth Cent.................. 5.250 05/15/26 1,228,948 2,000 Michigan Muni Bd Auth Rev Clean Wtr Rev Fd......................................... 5.250 10/01/18 2,119,180 2,850 Michigan St Hosp Fin Auth Rev Ascension Hlth Cr Ser A (Prerefunded @ 11/15/09) (MBIA Insd)................................ 5.750 11/15/18 3,258,975 1,500 Michigan St Strategic Fd Detroit Edison Co Proj C Rfdg (XLCA Insd) (AMT).............. 5.450 12/15/32 1,531,665 2,500 Michigan St Strategic Fd Detroit Edison Co Proj Ser A (XLCA Insd) (AMT)............... 5.500 06/01/30 2,577,825 ------------- 25,834,358 -------------
See Notes to Financial Statements 13 VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - ---------------------------------------------------------------------------------------------- MINNESOTA 1.8% $ 5,000 Minneapolis & Saint Paul, MN Metro Arpts Comm Arpt Rev Ser A (FGIC Insd)............ 5.125% 01/01/31 $ 5,051,100 2,800 Minnesota Agriculture & Econ Dev Brd Rev Hlthcare Sys Fairview Hosp Ser A (MBIA Insd)...................................... 5.750 11/15/26 2,974,076 ------------- 8,025,176 ------------- MISSISSIPPI 1.4% 3,000 Medical Cent Ed Bldg Corp MS Rev Univ MS Med Cent Proj (Prerefunded @ 12/01/04) (MBIA Insd)................................ 5.900 12/01/23 3,141,690 3,250 Mississippi Business Fin Corp MS Pollutn Ctl Rev Sys Energy Res Inc Proj............ 5.875 04/01/22 3,266,217 ------------- 6,407,907 ------------- MISSOURI 1.3% 1,500 Cape Girardeau Cnty, MO Indl Dev Auth Hlthcare Fac Rev Southeast MO Hosp Assoc... 5.625 06/01/27 1,516,410 1,625 Jefferson Cnty, MO Reorg Sch Dist No R-6 (FGIC Insd)................................ 5.625 03/01/20 1,820,244 1,500 Kansas City, MO Met Cmnty Impt Leasehold Jr College Rfdg (FGIC Insd)................... 5.500 07/01/17 1,632,525 1,000 Missouri St Hwys & Trans Ser A............. 5.125 02/01/17 1,055,660 ------------- 6,024,839 ------------- NEBRASKA 0.8% 1,190 Dodge Cnty, NE Sch Dist No 001 Fremont (FSA Insd)...................................... 5.750 12/15/13 1,335,382 2,260 University NE Univ Rev Lincoln Student Fees & Fac Ser B................................ 5.000 07/01/23 2,284,770 ------------- 3,620,152 ------------- NEVADA 0.3% 1,500 Reno, NV Sr Lien Retrac Reno Trans Proj (AMBAC Insd)............................... 5.125 06/01/32 1,507,725 ------------- NEW HAMPSHIRE 0.5% 1,000 New Hampshire Hlth & Ed Fac Auth Rev Derryfield Sch............................. 7.000 07/01/30 996,890 1,000 New Hampshire St Bus Fin Auth Wtr Fac Rev Pennichuck Wtrwks Inc (AMBAC Insd) (AMT)... 6.300 05/01/22 1,105,870 ------------- 2,102,760 -------------
14 See Notes to Financial Statements VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - ---------------------------------------------------------------------------------------------- NEW JERSEY 11.9% $ 5,650 Garden St Preservation Tr NJ Ser A (FSA Insd)...................................... 5.250% 11/01/19 $ 6,026,459 1,500 New Jersey Econ Dev Auth Rev Trans Proj Sublease Ser A (Prerefunded @ 05/01/09) (FSA Insd)................................. 5.250 05/01/17 1,657,830 25,000 New Jersey Econ Dev Auth St Contract Econ Recovery (MBIA Insd)....................... 5.900 03/15/21 28,698,000 2,000 New Jersey Hlthcare Fac Fin Auth Rev Gen Hosp Ctr Passaic (Escrowed to Maturity) (FSA Insd)................................. 6.000 07/01/06 2,135,060 3,000 New Jersey St Ed Fac Auth Higher Ed Cap Impt Ser A (AMBAC Insd).................... 5.250 09/01/19 3,175,080 710 New Jersey St Tpk Auth Tpk Rev Ser A (MBIA Insd)...................................... 6.000 01/01/11 813,589 290 New Jersey St Tpk Auth Tpk Rev Ser A (Escrowed to Maturity) (MBIA Insd)......... 6.000 01/01/11 333,613 3,500 New Jersey St Trans Corp Ctfs Fed Trans Admin Grants Ser A (AMBAC Insd)............ 5.500 09/15/13 3,898,230 2,385 New Jersey St Trans Corp Ctfs Fed Trans Admin Grants Ser A (Prerefunded @ 09/15/09) (AMBAC Insd)............................... 5.750 09/15/11 2,702,420 4,000 New Jersey St Trans Tr Fd Auth Trans Sys Ser C (FSA Insd)........................... 5.500 06/15/20 4,329,120 ------------- 53,769,401 ------------- NEW MEXICO 0.3% 1,250 Jicarilla, NM Apache Nation Rev Ser A (Acquired 10/23/2003, Cost $1,274,958)..... 5.500 09/01/23 1,277,088 ------------- NEW YORK 23.4% 3,000 Metropolitan Trans Auth NY Commuter Fac Rev Ser A (Prerefunded @ 01/01/08) (MBIA Insd)...................................... 5.625 07/01/27 3,358,140 2,000 Metropolitan Trans Auth NY Trans Fac Rev Svc Contract Ser R (Prerefunded @ 07/01/15).................................. 5.500 07/01/17 2,259,320 2,000 Nassau Cnty, NY Interim Fin Auth Sales Tax Secured Ser A (Prerefunded @ 11/15/10)..... 5.750 11/15/13 2,282,360 2,500 New York City Ser A Rfdg................... 7.000 08/01/05 2,661,775 3,000 New York City Ser A Rfdg................... 7.000 08/01/06 3,310,830 1,850 New York City Ser G........................ 5.875 10/15/14 2,019,645 1,000 New York City Ser H........................ 5.750 03/15/13 1,091,490 5,000 New York City Ser I........................ 6.000 04/15/12 5,460,900 2,500 New York City Ser I (MBIA Insd)............ 5.000 08/01/17 2,629,925 10,000 New York City Trans Auth Trans Fac Livingston Plaza Proj Rfdg (Escrowed to Maturity) (FSA Insd)....................... 5.400 01/01/18 11,039,000
See Notes to Financial Statements 15 VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - ---------------------------------------------------------------------------------------------- NEW YORK (CONTINUED) $ 3,000 New York City Transitional Fin Auth Rev Future Tax Secd Ser A Rfdg (d)............. 5.500/14.000% 11/01/26 $ 3,315,720 5,305 New York City Transitional Future Tax Secd Ser C (AMBAC Insd)......................... 5.250 08/01/20 5,604,467 2,000 New York City Transitional Future Tax Secd Ser C (AMBAC Insd)......................... 5.250 08/01/22 2,095,980 4,545 New York City Transitional Future Tax Secd Ser D (MBIA Insd).......................... 5.250 02/01/21 4,800,838 2,500 New York St Dorm Auth Lease Rev Muni Hlth Fac Impt Pgm Ser A (FSA Insd).............. 5.500 05/15/25 2,590,950 1,250 New York St Dorm Auth Lease Rev St Univ Dorm Fac Ser C (Prerefunded @ 07/01/09) (MBIA Insd)................................ 5.500 07/01/29 1,410,238 13,500 New York St Dorm Auth Rev City Univ Sys Ser C.......................................... 7.500 07/01/10 15,628,005 3,000 New York St Dorm Auth Rev St Univ Ed Fac (Prerefunded @ 05/15/10) (FGIC Insd)....... 5.750 05/15/24 3,435,000 2,000 New York St Dorm Auth Rev St Univ Ed Fac 1989 Res (MBIA Insd)....................... 6.000 05/15/16 2,274,860 1,980 New York St Dorm Auth Rev St Univ Ed Fac Ser B...................................... 5.250 05/15/10 2,173,189 1,500 New York St Environmental Fac Revolving Fds Ser C...................................... 5.000 07/15/21 1,546,230 1,550 New York St Hsg Fin Agy St Economic Dev & Hsg Ser A.................................. 5.000 09/15/23 1,547,055 2,840 New York St Loc Govt Assistance Corp Ser E Rfdg....................................... 6.000 04/01/14 3,264,807 3,000 New York St Med Care Fac Fin Agy Rev NY Hosp Mtg Ser A (Prerefunded @ 02/15/05) (AMBAC Insd)............................... 6.750 08/15/14 3,187,530 5,875 New York St Med Care Fac Fin Agy Rev Saint Peter's Hosp Proj Ser A (AMBAC Insd)....... 5.375 11/01/20 6,004,603 1,500 New York St Urban Dev Corp Rev Proj Cent for Indl Innovation Rfdg................... 5.500 01/01/13 1,657,020 3,000 Port Auth NY & NJ Spl Oblig Rev Spl Proj JFK Intl Arpt Terminal 6 (AMT) (MBIA Insd)...................................... 5.750 12/01/22 3,219,330 3,000 Port Auth NY & NJ Spl Oblig Rev Spl Proj JFK Intl Arpt Terminal 6 (AMT) (MBIA Insd)...................................... 5.750 12/01/25 3,146,580 2,150 Triborough Brdg & Tunl Auth Gen Purp Ser A.......................................... 5.000 01/01/27 2,150,538 ------------- 105,166,325 -------------
16 See Notes to Financial Statements VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - ---------------------------------------------------------------------------------------------- NORTH CAROLINA 5.1% $ 2,000 Johnston Cnty, NC (FGIC Insd).............. 5.900% 03/01/19 $ 2,263,280 1,000 North Carolina Eastern Muni Pwr Agy Pwr Sys Rev Ser D.................................. 6.750 01/01/26 1,097,350 15,000 North Carolina Muni Pwr Agy No 1 Catawba Elec Rev Rfdg (MBIA Insd).................. 6.000 01/01/12 17,139,300 2,500 North Carolina Muni Pwr Agy Ser A (MBIA Insd)...................................... 5.250 01/01/19 2,637,800 ------------- 23,137,730 ------------- NORTH DAKOTA 0.3% 1,390 North Dakota St Hsg Fin Agy Rev Hsg Fin Pgm Home Mtg Fin Ser B (MBIA Insd) (AMT)....... 5.500 07/01/29 1,410,197 ------------- OHIO 2.1% 1,400 Bowling Green St Univ OH Gen Rcpt (FGIC Insd)...................................... 5.750 06/01/12 1,565,704 1,000 Cuyahoga Cnty, OH Hosp Fac Rev Canton Inc Proj....................................... 7.500 01/01/30 1,101,400 1,000 Delaware Cnty, OH Cap Fac.................. 6.000 12/01/25 1,104,180 1,000 Hamilton, OH One Renaissance Ctr Ser A (AMBAC Insd)............................... 5.500 11/01/16 1,093,150 1,000 Mahoning Cnty, OH Hosp Fac Forum Hlth Oblig Group Ser A................................ 6.000 11/15/32 1,041,680 1,000 Ohio St Air Quality Dev Auth Rev JMG Fdg Ltd Part Proj Rfdg (AMT) (AMBAC Insd)...... 6.375 04/01/29 1,036,640 1,840 Pickerington, OH Loc Sch Dist Cap Apprec Sch Fac Contr (FGIC Insd).................. * 12/01/12 1,285,038 1,000 University Cincinnati OH Gen Ser A (FGIC Insd)...................................... 5.500 06/01/09 1,116,190 ------------- 9,343,982 ------------- OKLAHOMA 1.9% 1,500 Jenks, OK Aquarium Auth Rev First Mtg (Prerefunded @ 07/01/10) (MBIA Insd)....... 6.100 07/01/30 1,746,255 1,575 Oklahoma City, OK Arpt Tr Jr Lien 27th Ser B (FSA Insd) (AMT)......................... 5.750 07/01/16 1,695,299 2,500 Pottawatomie Cnty, OK Dev Auth North Dear Creek Reservoir Proj (AMBAC Insd).......... 5.000 07/01/23 2,537,500 2,250 Tulsa Cnty, OK Pub Fac Auth Cap Impt Rev (AMBAC Insd)............................... 6.250 11/01/22 2,589,300 ------------- 8,568,354 -------------
See Notes to Financial Statements 17 VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - ---------------------------------------------------------------------------------------------- OREGON 2.9% $ 4,000 Oregon Hlth Sciences Univ Insd Ser A (MBIA Insd)...................................... 5.250% 07/01/22 $ 4,173,720 3,000 Oregon St Dept Admin Ser C Rfdg (MBIA Insd)...................................... 5.250 11/01/17 3,189,360 1,290 Oregon St Veterans Welfare Ser 76A......... 6.050 10/01/28 1,332,867 1,190 Portland, OR Cmnty College Dist Ser B...... 5.250 06/01/12 1,291,198 1,985 Portland, OR Urban Renewal & Redev Downtown Wtrfront Ser A (AMBAC Insd)................ 5.750 06/15/16 2,211,211 1,000 Washington Multnomah & Yamhill (MBIA Insd)...................................... 5.000 06/01/13 1,065,270 ------------- 13,263,626 ------------- PENNSYLVANIA 4.4% 1,250 Allegheny Cnty, PA Ctf Part (AMBAC Insd)... 5.000 12/01/28 1,252,450 1,250 Allegheny Cnty, PA San Auth Swr Rev (MBIA Insd)...................................... 5.750 12/01/16 1,396,613 4,680 Erie, PA Sch Dist Cap Apprec Rfdg (FSA Insd)...................................... * 09/01/19 2,187,853 3,650 Falls Twp, PA Hosp Auth Hosp Rev DE Vly Med Rfdg (FHA Gtd)............................. 7.000 08/01/22 3,836,150 1,905 Harrisburg, PA Cap Apprec Ser D Rfdg (AMBAC Insd)...................................... * 09/15/16 1,066,381 1,710 Harrisburg, PA Cap Apprec Ser D Rfdg (AMBAC Insd)...................................... * 03/15/19 820,270 1,385 Harrisburg, PA Cap Apprec Ser F Rfdg (AMBAC Insd)...................................... * 09/15/19 648,166 2,000 Harrisburg, PA Res Gtd Sub Ser D 2 (FSA Insd)...................................... 5.000 12/01/33 2,124,480 1,500 Penn Cambria Sch Dist PA Cap Apprec (FGIC Insd)...................................... * 08/15/20 659,295 60 Penn Hills, PA (Prerefunded @ 12/01/07) (FGIC Insd)................................ 5.900 12/01/17 67,206 1,000 Pennsylvania St Higher Ed Fac Auth College & Univ Rev Bryn Mawr College (MBIA Insd)... 5.625 12/01/27 1,056,510 1,000 Philadelphia, PA Auth Indl Dev Philadelphia Arpt Sys Proj Ser A (FGIC Insd) (AMT)...... 5.125 07/01/19 1,021,890 1,400 Philadelphia, PA Sch Dist Ser A (FSA Insd)...................................... 5.750 02/01/12 1,559,754 1,500 Pittsburgh, PA Ser A (Prerefunded @ 09/01/09) (FGIC Insd)...................... 5.750 09/01/23 1,687,845 1,005 Southeast Delco Sch Dist PA Cap Apprec (MBIA Insd)................................ * 02/01/17 545,454 ------------- 19,930,317 -------------
18 See Notes to Financial Statements VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - ---------------------------------------------------------------------------------------------- RHODE ISLAND 0.4% $ 1,490 Providence, RI Redev Agy Rev Pub Safety & Muni Bldgs Ser A (AMBAC Insd).............. 5.500% 04/01/14 $ 1,633,532 ------------- SOUTH CAROLINA 3.9% 2,275 Beaufort Cnty, SC Tax Increment New River Redev Proj Area (MBIA Insd)................ 5.500 06/01/19 2,463,074 2,375 Berkeley Cnty, SC Sch Dist Ctfs Part Berkeley Sch Facs Grp Inc (Escrowed to Maturity) (MBIA Insd)...................... 5.250 02/01/16 2,538,186 2,700 Charleston Cnty, SC Solid Waste (Prerefunded @ 01/01/05) (MBIA Insd)....... 6.000 01/01/14 2,838,456 3,750 South Carolina Jobs Econ Dev Auth Indl Rev Elec & Gas Co Proj Ser B (AMBAC Insd) (AMT)...................................... 5.450 11/01/32 3,847,163 3,500 South Carolina Jobs Econ Elec & Gas Co Proj Ser A (AMBAC Insd)......................... 5.200 11/01/27 3,576,440 2,000 South Carolina St Pub Svc Auth Rev Ser D Rfdg (FSA Insd)............................ 5.000 01/01/20 2,061,580 ------------- 17,324,899 ------------- SOUTH DAKOTA 0.8% 1,375 Deadwood, SD Ctf Part (ACA Insd)........... 6.375 11/01/20 1,464,636 1,000 South Dakota St Hlth & Ed Fac Auth Rev Childrens Care Hosp Rfdg................... 6.125 11/01/29 1,045,700 995 South Dakota St Hlth & Ed Fac Auth Vocational Ed Pgm Ser A (AMBAC Insd)....... 5.400 08/01/13 1,087,097 ------------- 3,597,433 ------------- TENNESSEE 2.0% 1,500 Johnson City, TN Hlth & Ed Fac Brd Hosp Rev First Mtg Mtn States Rfdg (MBIA Insd)...... 7.500 07/01/25 1,849,965 1,000 Memphis, TN Gen Impt....................... 5.000 05/01/20 1,034,060 410 Montgomery Cnty, TN Pub Impt Rfdg (FGIC Insd)...................................... 5.500 05/01/16 446,695 5,090 Montgomery Cnty, TN Pub Impt Rfdg (Prerefunded @ 05/01/12) (FGIC Insd)....... 5.500 05/01/16 5,715,154 ------------- 9,045,874 ------------- TEXAS 11.3% 2,685 Beaumont, TX Wtrwks & Swr Sys (FGIC Insd).. 6.250 09/01/15 3,082,622 1,275 Cameron Cnty, TX Ctf Oblig (AMBAC Insd).... 5.750 02/15/13 1,415,888 3,000 Dallas Cnty, TX Util & Reclamation Dist Ser B Rfdg (AMBAC Insd)........................ 5.875 02/15/29 3,078,930 2,000 Dallas, TX Wtrwks & Swr Sys Rev Rfdg....... 5.750 10/01/17 2,215,920
See Notes to Financial Statements 19 VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - ---------------------------------------------------------------------------------------------- TEXAS (CONTINUED) $ 4,000 Dallas-Fort Worth, TX Intl Arpt Rev Impt Jt Ser A Rfdg (FGIC Insd) (AMT)............... 5.500% 11/01/31 $ 4,097,440 4,000 Dallas-Fort Worth, TX Intl Arpt Rev Jt Ser A (FGIC Insd) (AMT)........................ 5.750 11/01/30 4,131,120 6,000 Harris Cnty, TX Flood Ctl Dist Contract B Rfdg....................................... 5.000 10/01/23 6,069,420 1,000 Houston, TX Arpt Sys Rev Sub Lien Ser A (FSA Insd) (AMT)........................... 5.625 07/01/30 1,022,420 3,000 Houston, TX Hotel Occupancy Tax & Spl Rev Convention & Entmt Ser B (AMBAC Insd)...... 5.750 09/01/15 3,336,810 1,500 Houston, TX Pub Impt Rfdg (FSA Insd)....... 5.750 03/01/15 1,663,785 1,925 Houston, TX Wtr & Swr Sys Rev Jr Lien Ser C (FGIC Insd)................................ 5.375 12/01/27 1,974,723 1,500 Metropolitan Hlth Fac Dev Corp TX Wilson N Jones Mem Hosp Proj........................ 7.250 01/01/31 1,415,415 1,500 North Cent TX Hlth Fac Dev Hosp Baylor Hlthcare Sys Proj Ser A.................... 5.125 05/15/29 1,472,985 4,000 North Cent TX Hlth Fac Dev Hosp Childrens Med Ctr Dallas (AMBAC Insd)................ 5.250 08/15/32 4,065,240 3,000 San Antonio, TX Elec & Gas Sys Rfdg........ 5.375 02/01/16 3,227,310 2,750 Texas St Vets Housing Assistance Pgm Vet Ser B (FHA Gtd) (AMT)...................... 6.100 06/01/31 2,900,920 3,000 University of TX Univ Rev Fin Sys Ser A.... 5.250 08/15/20 3,172,620 2,300 University of TX Univ Rev Fin Sys Ser C (Prerefunded @ 08/15/11)................... 5.375 08/15/19 2,560,429 ------------- 50,903,997 ------------- UTAH 1.9% 140 Utah St Hsg Fin Agy Single Family Mtg Mezzanine Issue H1 (AMBAC Insd)............ 6.000 07/01/12 145,930 3,625 Utah St Ser A.............................. 5.000 07/01/07 3,921,815 4,000 Utah St Ser B Rfdg......................... 5.250 07/01/08 4,407,000 ------------- 8,474,745 ------------- VIRGINIA 0.5% 1,320 Fairfax Cnty, VA Ctf Part.................. 5.300 04/15/23 1,360,867 1,000 Henrico Cnty, VA Indl Dev Auth Pub Fac Lease Rev Henrico Cnty Regl Jail Proj (Prerefunded @ 08/01/05)................... 7.125 08/01/21 1,089,920 ------------- 2,450,787 -------------
20 See Notes to Financial Statements VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - ---------------------------------------------------------------------------------------------- WASHINGTON 6.4% $ 3,245 Clark Cnty, WA Sch Dist 114 Evergreen (FSA Insd)...................................... 5.500% 12/01/15 $ 3,539,711 2,500 Energy Northwest WA Elec Rev Proj No 3 Ser A Rfdg (FSA Insd).......................... 5.500 07/01/18 2,696,050 5,360 Energy Northwest WA Elec Rev Proj No 3 Ser B Rfdg (FSA Insd).......................... 6.000 07/01/16 6,039,594 1,485 Pierce Cnty, WA (AMBAC Insd)............... 5.750 08/01/14 1,662,339 1,000 Port Seattle, WA Rev Ser B (MBIA Insd) (AMT)...................................... 5.625 02/01/24 1,031,820 1,435 Radford Ct Pptys WA Student Hsg Rev (MBIA Insd)...................................... 6.000 06/01/15 1,624,233 1,585 Radford Ct Pptys WA Student Hsg Rev (MBIA Insd)...................................... 6.000 06/01/16 1,797,073 1,150 Seattle, WA Muni Lt & Pwr Rev.............. 5.250 12/01/08 1,261,148 1,315 Seattle, WA Muni Lt & Pwr Rev.............. 5.500 12/01/09 1,458,690 1,000 Seattle, WA Muni Lt & Pwr Rev.............. 5.625 12/01/18 1,066,690 3,000 Spokane, WA Pub Fac Dist Hotel Motel & Sales Use Tax (MBIA Insd).................. 5.250 09/01/33 3,069,060 1,350 Tacoma, WA Elec Sys Rev Ser A Rfdg (FSA Insd)...................................... 5.750 01/01/15 1,494,545 1,650 Tacoma, WA Elec Sys Rev Ser B Rfdg (FSA Insd)...................................... 5.500 01/01/12 1,835,592 ------------- 28,576,545 ------------- WISCONSIN 1.1% 1,225 De Pere, WI Unit Sch Dist Rfdg (FGIC Insd)...................................... 5.000 10/01/13 1,296,479 1,340 Oconto Falls, WI Pub Sch Dist Ser A Rfdg (Prerefunded @ 03/01/11) (FSA Insd)........ 5.750 03/01/15 1,524,625 2,000 Southeast WI Professional Baseball Pk Dist Sales Tax Rev Ser A Rfdg (MBIA Insd)....... 5.500 12/15/20 2,223,540 ------------- 5,044,644 -------------
See Notes to Financial Statements 21 VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - ---------------------------------------------------------------------------------------------- GUAM 0.7% $ 3,000 Guam Pwr Auth Rev Ser A (AMBAC Insd)....... 5.250% 10/01/34 $ 3,067,710 ------------- PUERTO RICO 0.3% 1,110 Puerto Rico Comwlth Aqueduct & Swr Auth Rev Rfdg....................................... 5.000 07/01/15 1,136,540 ------------- TOTAL LONG-TERM INVESTMENTS 156.9% (Cost $658,074,034).......................................................... 706,377,571 SHORT-TERM INVESTMENTS 0.2% (Cost $1,030,000)............................................................ 1,030,000 ------------- TOTAL INVESTMENTS 157.1% (Cost $659,104,034).......................................................... 707,407,571 OTHER ASSETS IN EXCESS OF LIABILITIES 1.8%.................................... 7,889,586 PREFERRED SHARES (INCLUDING ACCRUED DISTRIBUTIONS) (58.9%).................... (265,065,749) ------------- NET ASSETS APPLICABLE TO COMMON SHARES 100.0%................................. $ 450,231,408 =============
* Zero coupon bond (a) Security includes a put feature allowing the trust to periodically put the security back to the issuer at amortized cost on specified put dates. The interest rate shown represents the current interest rate earned by the Trust based on the most recent reset date. (b) Securities purchased on a when-issued or delayed delivery basis. (c) All or a portion of these securities have been physically segregated in connection with open futures contracts. (d) Security is a "step-up" bond where the coupon increases or steps up at a predetermined date. ACA--American Capital Access AMBAC--AMBAC Indemnity Corp. AMT--Alternative Minimum Tax FGIC--Financial Guaranty Insurance Co. FHA--Federal Housing Administration FSA--Financial Security Assurance Inc. MBIA--Municipal Bond Investors Assurance Corp. XLCA--XL Capital Assurance Inc. 22 See Notes to Financial Statements VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS FINANCIAL STATEMENTS Statement of Assets and Liabilities April 30, 2004 (Unaudited) ASSETS: Total Investments (Cost $659,104,034)....................... $707,407,571 Cash........................................................ 357,060 Receivables: Interest.................................................. 10,586,745 Investments Sold.......................................... 1,795,625 Other....................................................... 2,271 ------------ Total Assets............................................ 720,149,272 ------------ LIABILITIES: Payables: Investments Purchased..................................... 3,809,523 Investment Advisory Fee................................... 356,249 Variation Margin on Futures............................... 116,469 Income Distributions--Common Shares....................... 111,530 Administrative Fee........................................ 29,687 Other Affiliates.......................................... 26,121 Trustees' Deferred Compensation and Retirement Plans........ 300,308 Accrued Expenses............................................ 102,228 ------------ Total Liabilities....................................... 4,852,115 Preferred Shares (including accrued distributions).......... 265,065,749 ------------ NET ASSETS APPLICABLE TO COMMON SHARES...................... $450,231,408 ============ NET ASSET VALUE PER COMMON SHARE ($450,231,408 divided by 27,013,149 shares outstanding)............................ $ 16.67 ============ NET ASSETS CONSIST OF: Common Shares ($.01 par value with an unlimited number of shares authorized, 27,013,149 shares issued and outstanding).............................................. $ 270,131 Paid in Surplus............................................. 399,277,851 Net Unrealized Appreciation................................. 49,324,965 Accumulated Undistributed Net Investment Income............. 3,043,602 Accumulated Net Realized Loss............................... (1,685,141) ------------ NET ASSETS APPLICABLE TO COMMON SHARES...................... $450,231,408 ============ PREFERRED SHARES ($.01 par value, authorized 100,000,000 shares, 10,600 issued with liquidation preference of $25,000 per share)........................................ $265,000,000 ============ NET ASSETS INCLUDING PREFERRED SHARES....................... $715,231,408 ============
See Notes to Financial Statements 23 VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS FINANCIAL STATEMENTS continued Statement of Operations For the Six Months Ended April 30, 2004 (Unaudited) INVESTMENT INCOME: Interest.................................................... $ 17,837,036 ------------ EXPENSES: Investment Advisory Fee..................................... 2,194,069 Preferred Share Maintenance................................. 353,186 Administrative Fee.......................................... 182,839 Trustees' Fees and Related Expenses......................... 81,453 Legal....................................................... 34,152 Custody..................................................... 21,449 Other....................................................... 162,317 ------------ Total Expenses.......................................... 3,029,465 ------------ NET INVESTMENT INCOME....................................... $ 14,807,571 ============ REALIZED AND UNREALIZED GAIN/LOSS: Realized Gain/Loss: Investments............................................... $ 480,454 Futures................................................... (4,231,163) ------------ Net Realized Loss........................................... (3,750,709) ------------ Unrealized Appreciation/Depreciation: Beginning of the Period................................... 55,619,347 ------------ End of the Period: Investments............................................. 48,303,537 Futures................................................. 1,021,428 ------------ 49,324,965 ------------ Net Unrealized Depreciation During the Period............... (6,294,382) ------------ NET REALIZED AND UNREALIZED LOSS............................ $(10,045,091) ============ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS..................... $ (1,338,546) ============ NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM OPERATIONS................................................ $ 3,423,934 ============
24 See Notes to Financial Statements VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS FINANCIAL STATEMENTS continued Statements of Changes in Net Assets (Unaudited)
FOR THE FOR THE SIX MONTHS ENDED YEAR ENDED APRIL 30, 2004 OCTOBER 31, 2003 ------------------------------------ FROM INVESTMENT ACTIVITIES: Operations: Net Investment Income................................... $ 14,807,571 $ 29,908,581 Net Realized Gain/Loss.................................. (3,750,709) 5,112,551 Net Unrealized Depreciation During the Period........... (6,294,382) (2,721,390) Distributions to Preferred Shareholders: Net Investment Income................................. (1,113,675) (2,221,342) Net Realized Gain..................................... (224,871) (786,321) ------------ ------------ Change in Net Assets Applicable to Common Shares from Operations............................................ 3,423,934 29,292,079 Distributions to Common Shareholders: Net Investment Income................................. (13,708,544) (28,875,489) Net Realized Gain..................................... (2,814,615) (8,705,889) ------------ ------------ NET CHANGE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM INVESTMENT ACTIVITIES............................ (13,099,225) (8,289,299) NET ASSETS APPLICABLE TO COMMON SHARES: Beginning of the Period................................. 463,330,633 471,619,932 ------------ ------------ End of the Period (Including accumulated undistributed net investment income of $3,043,602 and $3,058,250, respectively)......................................... $450,231,408 $463,330,633 ============ ============
See Notes to Financial Statements 25 VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS FINANCIAL HIGHLIGHTS (UNAUDITED) THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE TRUST OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
SIX MONTHS ENDED APRIL 30, ------------------- 2004 2003 2002 (a) --------------------------------- NET ASSET VALUE, BEGINNING OF THE PERIOD.................. $ 17.15 $ 17.46 $ 17.51 ------- ------- ------- Net Investment Income................................... .55 1.10 1.18 Net Realized and Unrealized Gain/Loss................... (.37) .09 .18 Common Share Equivalent of Distributions Paid to Preferred Shareholders: Net Investment Income................................. (.04) (.08) (.10) Net Realized Gain..................................... (.01) (.03) (.07) ------- ------- ------- Total from Investment Operations.......................... .13 1.08 1.19 Distributions Paid to Common Shareholders: Net Investment Income................................. (.51) (1.07) (1.03) Net Realized Gain..................................... (.10) (.32) (.21) ------- ------- ------- NET ASSET VALUE, END OF THE PERIOD........................ $ 16.67 $ 17.15 $ 17.46 ======= ======= ======= Common Share Market Price at End of the Period............ $ 14.42 $ 15.58 $ 15.80 Total Return (b).......................................... -3.80%* 7.60% 14.56% Net Assets Applicable to Common Shares at End of the Period (In millions).................................... $ 450.2 $ 463.3 $ 471.6 Ratio of Expenses to Average Net Assets Applicable to Common Shares (c)....................................... 1.30% 1.28% 1.41% Ratio of Net Investment Income to Average Net Assets Applicable to Common Shares (c)......................... 6.33% 6.40% 6.89% Portfolio Turnover........................................ 6%* 23% 33% SUPPLEMENTAL RATIOS: Ratio of Expenses to Average Net Assets Including Preferred Shares (c).................................... .83% .82% .89% Ratio of Net Investment Income to Average Net Assets Applicable to Common Shares (d)......................... 5.85% 5.92% 6.30% SENIOR SECURITIES: Total Preferred Shares Outstanding........................ 10,600 10,600 10,600 Asset Coverage Per Preferred Share (e).................... $67,481 $68,721 $69,511 Involuntary Liquidating Preference Per Preferred Share.... $25,000 $25,000 $25,000 Average Market Value Per Preferred Share.................. $25,000 $25,000 $25,000
* Non-Annualized (a)As required effective November 1, 2001, the Trust has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on fixed income securities. The effect of this change for the year ended October 31, 2002 was to increase net investment income per share by $.01, decrease net realized and unrealized gains and losses per share by $.01 and increase the ratio of net investment income to average net assets applicable to common shares by .02%. Per share, ratios and supplemental data for periods prior to October 31, 2002 have not been restated to reflect this change in presentation. (b)Total return assumes an investment at the common share market price at the beginning of the period indicated, reinvestment of all distributions for the period in accordance with the Trust's dividend reinvestment plan, and sale of all shares at the closing common share market price at the end of the period indicated. (c)Ratios do not reflect the effect of dividend payments to preferred shareholders. (d)Ratios reflect the effect of dividend payments to preferred shareholders. (e)Calculated by subtracting the Trust's total liabilities (not including the preferred shares) from the Trust's total assets and dividing this by the number of preferred shares outstanding. 26
YEAR ENDED OCTOBER 31, - ----------------------------------------------------------------------------------------- 2001 2000 1999 1998 1997 1996 1995 1994 - ----------------------------------------------------------------------------------------- $ 16.22 $ 15.63 $ 17.64 $ 17.29 $ 16.58 $ 16.58 $ 15.03 $ 17.95 ------- -------- -------- -------- -------- -------- -------- -------- 1.25 1.32 1.33 1.35 1.37 1.38 1.42 1.43 1.24 .64 (1.94) .42 .74 .11 1.65 (2.84) (.32) (.40) (.32) (.34) (.35) (.35) (.38) (.30) -0- -0- (.02) (.02) -0- -0- -0- (.01) ------- -------- -------- -------- -------- -------- -------- -------- 2.17 1.56 (.95) 1.41 1.76 1.14 2.69 (1.72) (.88) (.97) (.99) (1.00) (1.05) (1.14) (1.14) (1.14) -0- -0- (.07) (.06) -0- -0- -0- (.06) ------- -------- -------- -------- -------- -------- -------- -------- $ 17.51 $ 16.22 $ 15.63 $ 17.64 $ 17.29 $ 16.58 $ 16.58 $ 15.03 ======= ======== ======== ======== ======== ======== ======== ======== $ 14.94 $13.5625 $13.6875 $ 17.00 $ 16.125 $ 15.813 $ 15.75 $ 14.00 16.85% 6.41% -13.97% 12.40% 8.92% 7.84% 21.15% -13.12% $ 473.0 $ 438.1 $ 422.2 $ 476.6 $ 467.0 $ 447.8 $ 447.9 $ 406.1 1.55% 1.68% 1.61% 1.58% 1.60% 1.62% 1.68% 1.63% 7.37% 8.44% 7.87% 7.73% 8.16% 8.37% 8.96% 8.63% 29% 31% 33% 29% 40% 30% 15% 20% .98% 1.03% 1.02% 1.01% 1.01% 1.02% 1.04% 1.03% 5.49% 5.86% 6.00% 5.80% 6.06% 6.24% 6.55% 6.79% 10,600 10,600 10,600 5,300 5,300 5,300 5,300 5,300 $69,623 $ 66,332 $ 64,827 $139,932 $138,116 $134,491 $134,501 $126,614 $25,000 $ 25,000 $ 25,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $25,000 $ 25,000 $ 25,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
See Notes to Financial Statements 27 VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2004 (UNAUDITED) 1. SIGNIFICANT ACCOUNTING POLICIES Van Kampen Trust for Investment Grade Municipals (the "Trust") is registered as a diversified, closed-end management investment company under the Investment Company Act of 1940, as amended. The Trust's investment objective is to provide a high level of current income exempt from federal income tax, consistent with preservation of capital. The Trust will invest substantially all of its assets in municipal securities rated investment grade at the time of investment. The Trust commenced investment operations on January 24, 1992. Effective November 30, 2003, the Trust's investment adviser, Van Kampen Investment Advisory Corp. merged into its affiliate, Van Kampen Asset Management. The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. A. SECURITY VALUATION Municipal bonds are valued by independent pricing services or dealers using the mean of the bid and asked prices or, in the absence of market quotations, at fair value based upon yield data relating to municipal bonds with similar characteristics and general market conditions. Securities which are not valued by independent pricing services or dealers are valued at fair value using procedures established in good faith by the Board of Trustees. Futures contracts are valued at the settlement price established each day on the exchange on which they are traded. 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 Trust may purchase and sell securities on a "when-issued" or "delayed delivery" basis with settlement to occur at a later date. The value of the security so purchased is subject to market fluctuations during this period. The Trust will segregate assets with the custodian having an aggregate value at least equal to the amount of the when-issued or delayed delivery purchase commitments until payment is made. At April 30, 2004, the Trust has $3,809,523 of when issued and delayed delivery purchase commitments. C. INVESTMENT INCOME Interest income is recorded on an accrual basis. Bond premium is amortized and discount is accreted over the expected life of each applicable security. D. FEDERAL INCOME TAXES It is the Trust's policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no provision for federal income taxes is required. 28 VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2004 (UNAUDITED) continued At April 30, 2004, the cost and related gross unrealized appreciation and depreciation are as follows: Cost of investments for tax purposes........................ $658,317,292 ============ Gross tax unrealized appreciation........................... $ 50,305,563 Gross tax unrealized depreciation........................... (1,215,284) ------------ Net tax unrealized appreciation on investments.............. $ 49,090,279 ============
E. DISTRIBUTION OF INCOME AND GAINS The Trust declares and pays monthly dividends from net investment income to common shareholders. Net realized gains, if any, are distributed annually on a pro rata basis to common and preferred shareholders. Distributions from net realized gains for book purposes may include short-term capital gains and a portion of futures gains, which are included as ordinary income for tax purposes. The tax character of distributions paid during the year ended October 31, 2003 was as follows: Distributions paid from: Ordinary income........................................... $1,160,043 Long-term capital gain.................................... 8,535,890 ---------- $9,695,933 ==========
As of October 31, 2003, the components of distributable earnings on a tax basis were as follows: Undistributed ordinary income............................... $ 123,357 Undistributed long-term capital gain........................ 3,036,707
Net realized gains or losses may differ for financial and tax reporting purposes primarily as a result of the deferral of losses relating to wash sale transactions. 2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES Under the terms of the Trust's Investment Advisory Agreement, Van Kampen Asset Management (the "Adviser") provides investment advice and facilities to the Trust for an annual fee payable monthly of .60% of the average daily net assets of the Trust. In addition, the Trust pays a monthly administrative fee to Van Kampen Investments Inc. or its affiliates (collectively "Van Kampen"), the Trust's Administrator, at an annual rate of .05% of the average daily net assets of the Trust. Effective June 1, 2004, the administrative fee was reduced from ..05% to .00%. For the six months ended April 30, 2004, the Trust recognized expenses of approximately $22,300 representing legal services provided by Skadden, Arps, Slate, Meagher & Flom LLP, counsel to the Trust, of which a trustee of the Trust is an affiliated person. Under separate Accounting Services and Legal Services agreements, the Adviser provides accounting and legal services to the Trust. The Adviser allocates the cost of such services to each Trust. For the six months ended April 30, 2004, the Trust recognized expenses of approximately $30,500 representing Van Kampen's cost of providing accounting and legal 29 VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2004 (UNAUDITED) continued services to the Trust, which are reported as part of "Other" and "Legal" expenses, respectively, in the Statement of Operations. Certain officers and trustees of the Trust are also officers and directors of Van Kampen. The Trust does not compensate its officers or trustees who are officers of Van Kampen. The Trust provides deferred compensation and retirement plans for its trustees who are not officers of Van Kampen. Under the deferred compensation plan, trustees may elect to defer all or a portion of their compensation to a later date. Benefits under the retirement plan are payable upon retirement for a ten-year period and are based upon each trustee's years of service to the Trust. The maximum annual benefit per trustee under the plan is $2,500. 3. INVESTMENT TRANSACTIONS During the period, the cost of purchases and proceeds from sales of investments, excluding short-term investments, were $45,535,141 and $49,835,753, respectively. 4. DERIVATIVE FINANCIAL INSTRUMENTS A derivative financial instrument in very general terms refers to a security whose value is "derived" from the value of an underlying asset, reference rate or index. In order to seek to manage the interest rate exposure of the Trust's portfolio in a changing interest rate environment, the Trust may purchase or sell financial futures contracts or engage in transactions involving interest rate swaps, caps, floors or collars. The Trust expects to enter into these transactions primarily as a hedge against anticipated interest rate or fixed-income market changes, for duration management or for risk management purposes, but may also enter into these transactions to generate additional income. All of the Trust's portfolio holdings, including derivative instruments, are marked to market each day with the change in value reflected in unrealized appreciation/depreciation. Upon disposition, a realized gain or loss is recognized accordingly, except when taking delivery of a security underlying a futures contract. In this instance, the recognition of gain or loss is postponed until the disposal of the security underlying the futures contract. Risks may arise as a result of the potential inability of the counterparties to meet the terms of their contracts. During the period, the Trust invested in futures contracts, a type of derivative. A futures contract is an agreement involving the delivery of a particular asset on a specified future date at an agreed upon price. The Trust generally invests in exchange traded futures on U.S. Treasury Bonds and Notes and typically closes the contract prior to delivery date. Upon entering into futures contracts, the Trust maintains an amount of cash or liquid securities with a value equal to a percentage of the contract amount with either a future commission merchant pursuant to rules and regulations promulgated under the Investment Company Act of 1940, as amended, or with its custodian in an account in the broker's name. This amount is known as initial margin. During the period the futures contract is open, payments are received from or made to the broker based upon changes in the value of the contract (the variation margin). The risk of loss associated with a futures contract is in excess of the variation margin reflected on the Statement of Assets and Liabilities. 30 VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2004 (UNAUDITED) continued Transactions in futures contracts, each with a par value of $100,000, for the six months ended April 30, 2004, were as follows:
CONTRACTS Outstanding at October 31, 2003............................. 856 Futures Opened.............................................. 1,238 Futures Closed.............................................. (1,576) ------ Outstanding at April 30, 2004............................... 518 ======
The futures contracts outstanding as of April 30, 2004, and the description and unrealized appreciation/depreciation were as follows:
UNREALIZED APPRECIATION/ CONTRACTS DEPRECIATION SHORT CONTRACTS: U.S. Treasury Notes 10-Year Futures June 2004 (Current Notional Value of $110,500 per contract).................. 90 227,431 U.S. Treasury Notes 5-Year Futures June 2004 (Current Notional Value of $109,938 per contract).................. 428 793,997 ---- ---------- 518 $1,021,428 ==== ==========
5. PREFERRED SHARES The Trust has outstanding 10,600 Auction Preferred Shares ("APS") in four series. Series A, B, and C contain 3,000 shares each while Series D contains 1,600 shares. Dividends are cumulative and the dividend rate is currently reset through an auction process. The dividend period is 28 days for Series A, B, C and D. The average rate in effect on April 30, 2004 was 1.051%. During the six months ended April 30, 2004, the rates ranged from 0.780% to 1.600%. The Trust pays annual fees equivalent to .25% of the preferred share liquidation value for the remarketing efforts associated with the preferred auctions. These fees are included as a component of "Preferred Share Maintenance" expense in the Statement of Operations. The APS are redeemable at the option of the Trust in whole or in part at the liquidation value of $25,000 per share plus accumulated and unpaid dividends. The Trust is subject to certain asset coverage tests and the APS are subject to mandatory redemption if the tests are not met. 31 VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS BOARD OF TRUSTEES AND IMPORTANT ADDRESSES BOARD OF TRUSTEES DAVID C. ARCH J. MILES BRANAGAN JERRY D. CHOATE ROD DAMMEYER LINDA HUTTON HEAGY R. CRAIG KENNEDY HOWARD J KERR MITCHELL M. MERIN* JACK E. NELSON RICHARD F. POWERS, III* HUGO F. SONNENSCHEIN WAYNE W. WHALEN* - Chairman SUZANNE H. WOOLSEY INVESTMENT ADVISER VAN KAMPEN ASSET MANAGEMENT 1221 Avenue of the Americas New York, NY 10020 CUSTODIAN AND TRANSFER AGENT STATE STREET BANK AND TRUST COMPANY c/o EquiServe P.O. Box 43011 Providence, Rhode Island 02940-3011 LEGAL COUNSEL SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP 333 West Wacker Drive Chicago, Illinois 60606 INDEPENDENT AUDITORS DELOITTE & TOUCHE LLP 180 North Stetson Avenue Chicago, Illinois 60601 * "Interested persons" of the Trust, as defined in the Investment Company Act of 1940, as amended. 32 Van Kampen Privacy Notice The Van Kampen companies and investment products* respect your right to privacy. We also know that you expect us to conduct and process your business in an accurate and efficient manner. To do so, we must collect and maintain certain nonpublic personal information about you. This is information we collect from you on applications or other forms, and from the transactions you conduct with us, our affiliates, or third parties. We may also collect information you provide when using our Web site, and text files (also known as "cookies") may be placed on your computer to help us to recognize you and to facilitate transactions you initiate. We do not disclose any nonpublic personal information about you or any of our former customers to anyone, except as permitted by law. For instance, so that we may continue to offer you Van Kampen investment products and services that meet your investing needs, and to effect transactions that you request or authorize, we may disclose the information we collect to companies that perform services on our behalf, such as printers and mailers that assist us in the distribution of investor materials. These companies will use this information only for the services for which we hired them, and are not permitted to use or share this information for any other purpose. To protect your nonpublic personal information internally, we permit access to it only by authorized employees, and maintain physical, electronic and procedural safeguards to guard your nonpublic personal information. * Includes Van Kampen Investments Inc., Van Kampen Asset Management, Van Kampen Advisors Inc., Van Kampen Funds Inc., Van Kampen Investor Services Inc., Van Kampen System Inc. and Van Kampen Exchange Corp., as well as the many Van Kampen mutual funds and Van Kampen unit investment trusts. Van Kampen Funds Inc. 1 Parkview Plaza, P.O. Box 5555 Oakbrook Terrace, IL 60181-5555 www.vankampen.com (VAN KAMPEN INVESTMENTS LOGO) Copyright (C)2004 Van Kampen Funds Inc. All rights reserved. Member NASD/SIPC. VGM SAR 6/04 RN04-00757P-Y04/04 Item 2. Code of Ethics. Not applicable for semi-annual reports. Item 3. Audit Committee Financial Expert. Not applicable for semi-annual reports. Item 4. Principal Accountant Fees and Services. Not applicable for semi-annual reports. Item 5. Audit Committee of Listed Registrants. Not applicable for semi-annual reports. Item 6. [Reserved.] Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. Not applicable. Item 8. [Reserved.] Item 9. Controls and Procedures (a) The Trust's principal executive officer and principal financial officer have concluded that the Trust's disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Trust 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 registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 10. Exhibits. (a) Code of Ethics -- Not applicable for semi-annual reports. (b)(1) A certification for the Principal Executive Officer of the registrant is attached hereto as part of EX-99.CERT. (b)(2) 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 Trust For Investment Grade Municipals By: /s/ Ronald E. Robison --------------------- Name: Ronald E. Robison Title: Principal Executive Officer Date: June 22, 2004 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: June 22, 2004 By: /s/ John L. Sullivan -------------------- Name: John L. Sullivan Title: Principal Financial Officer Date: June 22, 2004 EX-99.CERT 2 c85434exv99wcert.txt CERTIFICATION I, Ronald E. Robison, certify that: 1. I have reviewed this report on Form N-CSR of Van Kampen Trust For Investment Grade Municipals; 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) 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) Omitted.] 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 registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual 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: June 22, 2004 /s/ Ronald E. Robison --------------------------- Principal Executive Officer I, John L. Sullivan, certify that: 1. I have reviewed this report on Form N-CSR of Van Kampen Trust For Investment Grade Municipals; 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) for the registrant and have: b) 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) Omitted.] e) 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 f) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual 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): c) 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 d) 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: June 22, 2004 /s/ John L. Sullivan --------------------------- Principal Financial Officer EX-99.906CERT 3 c85434exv99w906cert.txt 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 Trust For Investment Grade Municipals In connection with the Report on Form N-CSR (the "Report") of the above-named issuer for the period ended April 30, 2004 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: June 22, 2004 /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 Trust For Investment Grade Municipals and will be retained by Van Kampen Trust For Investment Grade Municipals 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 Trust For Investment Grade Municipals In connection with the Report on Form N-CSR (the "Report") of the above-named issuer for the period ended April 30, 2004 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: June 22, 2004 /s/ John L. Sullivan --------------------------- John L. Sullivan Principal Financial Officer A signed original of this written statement required by Section 906 has been provided to Van Kampen Trust For Investment Grade Municipals and will be retained by Van Kampen Trust For Investment Grade Municipals 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-----