-----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, Ul+cjbJd2+1gMnD9OywKoHgiK8HU9sP8dLoohIVbqzU+j1KEg1GViHvuDyA4HLU0 0VCx2oIR9FewcPyY4egsCA== 0000950137-04-005307.txt : 20040629 0000950137-04-005307.hdr.sgml : 20040629 20040629131046 ACCESSION NUMBER: 0000950137-04-005307 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 MUNICIPAL OPPORTUNITY TRUST CENTRAL INDEX KEY: 0000884152 IRS NUMBER: 363810337 STATE OF INCORPORATION: MA FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-06567 FILM NUMBER: 04887823 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 MUNICIPAL OPPORTUNITY TRUST DATE OF NAME CHANGE: 19960102 FORMER COMPANY: FORMER CONFORMED NAME: VAN KAMPEN MERRITT MUNICIPAL OPPORTUNITY TRUST DATE OF NAME CHANGE: 19920929 N-CSRS 1 c85422nvcsrs.txt SEMIANNUAL REPORT DATED APRIL 30, 2004 ------------------------- OMB APPROVAL ------------------------- OMB Number: 3235-0570 Expires: October 31, 2006 Estimated average burden hours per response: 19.3 ------------------------- 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 811-6567 Van Kampen Municipal Opportunity Trust - -------------------------------------------------------------------------------- (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 Municipal Opportunity Trust 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
MUNICIPAL OPPORTUNITY TRUST SYMBOL: VMO - ------------------------------------------------------ AVERAGE ANNUAL BASED ON BASED ON TOTAL RETURNS NAV MARKET PRICE Since Inception (04/24/92) 7.94% 7.00% 10-year 7.97 7.89 5-year 6.75 6.15 1-year 2.48 -4.47 6-month 0.79 -6.89 - ------------------------------------------------------
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 a broad-based statistical composite of municipal bonds. The index is unmanaged and does not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index. 1 Trust Report FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2004 Van Kampen Municipal Opportunity Trust is managed by the adviser's Municipal Fixed Income team.(1) Current members include Dennis Pietrzak, Executive Director; 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 most of 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. With short- term rates at historic lows for much of the period, the difference between short-and longer-term rates was relatively high. This made using leverage a profitable approach in the early months of the period, and added to the trust's returns. As yields rose toward the end of the period, the prices of bonds declined. The trust's use of leverage magnified this negative price movement, leading to a total return lower 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, the strategy helped cushion returns in the final weeks of the period when interest rates soared. 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 84 percent exposure to bonds rated AA/Aa or higher at the end of the period. TOTAL RETURN FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2004
- -------------------------------------------------------------- BASED ON BASED ON LEHMAN BROTHERS NAV MARKET PRICE MUNICIPAL BOND INDEX 0.79% -6.89% 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 We also 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 the 15- to 20-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 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 proceeds of housing bonds that were called away by their issuers during the period. In other cases, we sold bonds that met their performance objectives. We reinvested this cash into securities that we believed had promising total-return characteristics. The trust's portfolio remained well diversified during the period, with its holdings spread across most 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, wholesale electric and airports. 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 ALLOCATION AS OF 4/30/04 General Purpose 14.7% AAA/Aaa 76.9% Wholesale Electric 13.6 AA/Aa 7.1 Airport 13.0 A/A 10.1 Health Care 12.0 BBB/Baa 3.2 Public Building 8.1 BB/Ba 0.9 B/B 0.3 Non-Rated 1.5
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 MUNICIPAL OPPORTUNITY TRUST PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED)
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - ---------------------------------------------------------------------------------------------- MUNICIPAL BONDS 157.5% ALABAMA 2.1% $1,305 Lee Cnty, AL Sch Wts Ltd Oblg (MBIA Insd)....... 5.000% 02/01/21 $ 1,337,912 2,405 Marshall Cnty, AL Hlthcare Ser C................ 6.000 01/01/32 2,501,104 5 Mobile, AL Indl Dev Brd Solid Waste Disp Rev Mobile Energy Svc Co Proj Rfdg (a) (b).......... 6.950 01/01/20 34 1,500 University of South Alabama Univ Rev & Cap Impt Tuition & Rfdg (FGIC Insd)...................... 5.000 03/15/23 1,523,880 ------------- 5,362,930 ------------- ARIZONA 1.7% 2,500 Arizona Sch Fac Brd Ctf Part Ser A (MBIA Insd)........................................... 5.250 09/01/17 2,671,975 1,500 Maricopa Cnty, AZ Stadium Dist Rfdg (AMBAC Insd)........................................... 5.375 06/01/19 1,607,190 ------------- 4,279,165 ------------- ARKANSAS 1.3% 3,035 Fort Smith, AR Wtr & Swr Rev Ser A Rfdg (FSA Insd)........................................... 5.250 10/01/16 3,244,627 ------------- CALIFORNIA 11.1% 115 California Rural Home Mtg Fin Auth Single Family Mtg Rev Ser C (AMT) (GNMA Collateralized)....... 7.800 02/01/28 121,921 4,500 California St (AMBAC Insd)...................... 5.125 10/01/27 4,513,905 5,500 California St Dept Wtr Res Pwr Ser A (AMBAC Insd)........................................... 5.500 05/01/16 6,003,140 2,000 California St Dept Wtr Res Pwr Ser A............ 5.750 05/01/17 2,168,540 2,500 California St Pub Wks Brd Lease Rev Dept Corrections Ser E Rfdg (XLCA Insd).............. 5.000 06/01/18 2,593,175 2,000 California St Pub Wks Brd Lease Rev Dept Mental Hlth Coalinga A................................. 5.000 06/01/25 1,908,400 3,500 California St Pub Wks Brd Lease Rev Dept Mental Hlth Coalinga A................................. 5.125 06/01/29 3,361,435 5,000 Contra Costa, CA Home Mtg Fin Auth Home Mtg Rev (Escrowed to Maturity) (MBIA Insd).............. * 09/01/17 2,532,250 4,000 Foothill/Eastern Corridor Agy CA Toll Rd Rev Conv Cap Apprec Sr Lien Ser A (Escrowed to Maturity) (c)................................... 0/7.050 01/01/10 4,593,720 ------------- 27,796,486 ------------- COLORADO 4.1% 2,000 Arapahoe Cnty, CO Cap Impt Tr Fd Hwy Rev E-470 Proj Ser B (Prerefunded @ 08/31/05)............. 7.000 08/31/26 2,204,340 1,505 Arapahoe Cnty, CO Ctfs Partn Rfdg (FSA Insd).... 5.250 12/01/15 1,638,072 545 Colorado Hlth Fac Auth Rev Catholic Hlth Initiatives..................................... 5.250 09/01/21 553,409 1,000 Colorado Hlth Fac Auth Rev Hosp Portercare Adventist Hlth.................................. 6.500 11/15/31 1,084,800
6 See Notes to Financial Statements VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - ---------------------------------------------------------------------------------------------- COLORADO (CONTINUED) $1,000 Colorado Hsg Fin Auth Multi-Family Hsg Ins Mtg Ser B2 (AMT) (FHA Gtd).......................... 5.800% 10/01/28 $ 1,027,420 226 Colorado Hsg Fin Auth Single Family Pgm Sr Ser A2 (AMT)........................................ 7.250 05/01/27 228,904 160 Colorado Hsg Fin Auth Single Family Pgm Sr Ser C1 (AMT)........................................ 7.550 11/01/27 163,936 1,000 Denver, CO City & Cnty Arpt Rev Ser B (AMT) (MBIA Insd)..................................... 6.250 11/15/07 1,101,000 1,005 Greeley, CO Multi-Family Rev Hsg Mtg Creek Stone (AMT) (FHA Gtd)................................. 5.950 07/01/28 1,029,281 1,000 Highlands Ranch Metro Dist No 2 CO Rfdg (FSA Insd)........................................... 6.500 06/15/11 1,179,470 ------------- 10,210,632 ------------- CONNECTICUT 2.2% 3,250 Connecticut St Spl Oblig Pkg Rev Bradley Intl Arpt Ser A (AMT) (ACA Insd)..................... 6.600 07/01/24 3,488,323 1,000 Mashantucket Western Pequot Tribe CT Spl Rev Ser A, 144A--Private Placement (d).................. 6.400 09/01/11 1,069,740 840 Mashantucket Western Pequot Tribe CT Spl Rev Ser A, 144A--Private Placement (Escrowed to Maturity) (d)................................... 6.500 09/01/06 927,956 ------------- 5,486,019 ------------- DISTRICT OF COLUMBIA 2.0% 5,000 Metropolitan Washington DC Arpt Auth Sys Ser A (AMT) (FGIC Insd)............................... 5.250 10/01/32 5,013,250 ------------- FLORIDA 3.6% 2,000 Escambia Cnty, FL Hlth Fac Auth Rev FL Hlthcare Fac Ln VHA Pgm (AMBAC Insd)..................... 5.950 07/01/20 2,089,280 1,000 Lakeland, FL Hosp Sys Rev Lakeland Regl Hlth Sys............................................. 5.500 11/15/32 1,005,580 2,100 Miami-Dade Cnty, FL Aviation Miami Intl Arpt (AMT) (FGIC Insd)............................... 5.375 10/01/27 2,148,132 2,375 North Broward, FL Hosp Dist Rev Impt............ 6.000 01/15/31 2,471,995 1,300 Plantation, FL Impt Projs Rfdg (FSA Insd)....... 5.000 08/15/21 1,341,353 ------------- 9,056,340 ------------- GEORGIA 7.0% 2,166 Fulton Cnty, GA Lease Rev (Acquired 12/23/1994, Cost $2,165,964) (e)............................ 7.250 06/15/10 2,245,282 7,000 Georgia Muni Elec Auth Pwr Rev Ser A (MBIA Insd)........................................... 6.500 01/01/20 8,521,450 6,245 Municipal Elec Auth GA Combustion Turbine Proj Ser A (MBIA Insd)............................... 5.250 11/01/16 6,679,839 ------------- 17,446,571 -------------
See Notes to Financial Statements 7 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - ---------------------------------------------------------------------------------------------- ILLINOIS 9.6% $2,000 Chicago, IL Brd of Ed (Prerefunded @ 12/01/10) (FGIC Insd)..................................... 5.500% 12/01/31 $ 2,258,120 5,000 Chicago, IL O'Hare Intl Arpt Rev Gen Arpt Second Lien Ser A Rfdg (MBIA Insd) (f)................. 6.375 01/01/12 5,246,000 105 Chicago, IL Single Family Mtg Rev Ser A (AMT) (GNMA Collateralized)........................... 7.000 09/01/27 105,523 75 Chicago, IL Single Family Mtg Rev Ser B (AMT) (GNMA Collateralized)........................... 7.625 09/01/27 76,522 1,000 Chicago, IL Wastewtr Transmission Rev Second Lien (MBIA Insd)................................ 5.750 01/01/25 1,071,450 2,000 Cook Cnty, IL Cmnty Cap Apprec (FSA Insd)....... * 12/01/10 1,557,620 2,500 Du Page Cnty, IL Trans Rev (FSA Insd)........... 5.750 01/01/17 2,761,675 3,285 Illinois Hlth Facs Auth Rev Midwest Physician Group Ltd Proj (Prerefunded @ 11/15/04)......... 8.125 11/15/19 3,469,551 540 Illinois Hsg Dev Auth Rev Homeowner Mtg G2 (AMT)........................................... 6.050 08/01/29 561,373 3,630 Kendall, Kane & Will Cntys, IL Cmnty Sch Dist 308 Ser B (FGIC Insd)........................... 5.250 10/01/20 3,804,639 1,000 Metropolitan Pier & Expo Auth IL Dedicated St Tax Rev McCormick Pl Expn Proj Rfdg (FGIC Insd)........................................... 5.500 12/15/24 1,050,320 1,865 Sangamon Cnty, IL Cmnty Unit Sch Dist No 5 (FGIC Insd)........................................... 6.500 12/01/05 2,004,204 ------------- 23,966,997 ------------- INDIANA 3.2% 3,270 Allen Cnty, IN War Mem Coliseum Ser A (AMBAC Insd)........................................... 5.500 11/01/16 3,535,491 1,000 Indiana St Dev Fin Auth Rev Exempt Fac Conv Rfdg (AMT)........................................... 5.950 08/01/30 1,014,090 1,210 North Adams, IN Cmnty Sch Cap Apprec First Mtg (FSA Insd)...................................... * 01/15/16 686,481 2,500 Purdue Univ, IN Univ Rev Student Fee Ser B (Prerefunded @ 01/01/05)........................ 6.750 07/01/09 2,665,425 ------------- 7,901,487 ------------- IOWA 0.8% 1,890 Des Moines, IA Pub Pkg Sys Rev Ser A (FGIC Insd)........................................... 5.750 06/01/17 2,100,111 ------------- KENTUCKY 3.1% 1,475 Kenton Cnty, KY Arpt Brd Rev Cincinnati/Northn KY Intl Arpt Ser A Rfdg (AMT) (MBIA Insd)....... 6.200 03/01/08 1,636,055 1,995 Kentucky Hsg Corp Hsg Rev Ser F (AMT) (FNMA Collateralized)................................. 5.450 01/01/32 2,025,085
8 See Notes to Financial Statements VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - ---------------------------------------------------------------------------------------------- KENTUCKY (CONTINUED) $2,345 Kentucky St Tpk Auth Econ Dev Revitalization Proj Rfdg (FSA Insd)............................ 5.625% 07/01/14 $ 2,599,573 1,250 Kentucky St Tpk Auth Econ Dev Revitalization Proj Rfdg (Prerefunded @ 01/01/11) (FSA Insd)... 5.625 07/01/13 1,386,863 ------------- 7,647,576 ------------- MARYLAND 1.8% 1,050 Maryland St Econ Dev Corp Student Hsg Rev Univ MD College Park Proj............................ 5.625 06/01/35 1,061,403 1,000 Maryland St Hlth & Higher Ed Fac Auth Rev Medstar Health Rfdg............................. 5.375 08/15/24 973,420 2,350 Northeast, MD Waste Disp Auth Rfdg (AMT) (AMBAC Insd)........................................... 5.500 04/01/16 2,509,424 ------------- 4,544,247 ------------- MASSACHUSETTS 3.9% 4,000 Massachusetts Muni Whsl Elec Co Proj 6 A (MBIA Insd)........................................... 5.250 07/01/15 4,282,800 3,000 Massachusetts St Dev Fin Agy Semass Sys Ser A (MBIA Insd)..................................... 5.625 01/01/16 3,271,620 1,000 Massachusetts St Fed Hwy Gnt Antic Nt Ser A..... 5.750 06/15/15 1,133,810 1,000 Massachusetts St Hlth & Ed Fac Auth Rev Partn Hlthcare Sys Ser C.............................. 5.750 07/01/32 1,046,650 ------------- 9,734,880 ------------- MICHIGAN 2.3% 3,505 Detroit, MI Wtr Supply Sys Ser B (MBIA Insd).... 5.250 07/01/18 3,734,402 2,000 Michigan St Ctf Part (AMBAC Insd)............... 5.500 06/01/27 2,082,140 ------------- 5,816,542 ------------- MINNESOTA 0.4% 1,000 Chaska, MN Elec Rev Ser A....................... 6.100 10/01/30 1,050,820 ------------- MISSISSIPPI 0.9% 1,500 Mississippi Home Corp Single Family Rev Mtg Ser C (AMT) (GNMA Collateralized)................... 7.600 06/01/29 1,604,880 620 Mississippi Home Corp Single Family Rev Mtg Ser F (AMT) (GNMA Collateralized)................... 7.550 12/01/27 639,381 ------------- 2,244,261 ------------- MISSOURI 3.8% 2,150 Cape Girardeau Cnty, MO Indl Southeast MO Hosp Assoc........................................... 5.500 06/01/22 2,189,904 3,605 Curators Univ MO Sys Facs Rev Ser A............. 5.000 11/01/21 3,713,583 150 Saint Louis Cnty, MO Single Family Mtg Rev (MBIA Insd)........................................... 6.900 04/01/16 151,298 3,000 Sikeston, MO Elec Rev Rfdg (MBIA Insd) (f)...... 6.200 06/01/10 3,435,480 ------------- 9,490,265 -------------
See Notes to Financial Statements 9 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - ---------------------------------------------------------------------------------------------- NEVADA 0.6% $1,500 Reno, NV Sr Lien Retrac Reno Trans Proj (AMBAC Insd)........................................... 5.125% 06/01/32 $ 1,507,725 ------------- NEW HAMPSHIRE 1.1% 2,500 New Hampshire Hlth & Ed Fac Univ Sys of NH (AMBAC Insd).................................... 5.500 07/01/15 2,732,100 ------------- NEW JERSEY 14.2% 2,000 Garden St Preservation Tr NJ Ser A (FSA Insd)... 5.250 11/01/18 2,146,140 5,000 New Jersey Econ Dev Auth Sch Fac Constr Ser F (FGIC Insd)..................................... 5.250 06/15/20 5,306,650 20,000 New Jersey Econ Dev Auth St Contract Econ Recovery (MBIA Insd)............................ 5.900 03/15/21 22,958,400 5,000 New Jersey St Ed Fac Auth Higher Ed Cap Impt Ser A (AMBAC Insd).................................. 5.250 09/01/21 5,252,650 ------------- 35,663,840 ------------- NEW MEXICO 0.7% 1,720 New Mexico Mtg Fin Auth Single Family Mtg Pgm Ser G (AMT) (GNMA Collateralized)............... 7.250 07/01/26 1,760,970 ------------- NEW YORK 13.7% 10,000 New York City Ser A............................. 7.000 08/01/07 11,053,400 3,000 New York City Ser A Rfdg........................ 7.000 08/01/05 3,194,130 2,500 New York St Dorm Auth Lease Mun Hlth Facs Impt Ser 1 (FSA Insd)................................ 5.500 01/15/12 2,720,575 1,495 New York St Dorm Auth Rev Mental Hlth Svcs Fac Ser A........................................... 5.750 08/15/12 1,622,987 5 New York St Dorm Auth Rev Mental Hlth Svcs Fac Ser A (Prerefunded @ 02/15/07).................. 5.750 08/15/12 5,567 1,445 New York St Dorm Auth Rev Secd Hosp North Gen Hosp Rfdg (MBIA Insd)........................... 5.750 02/15/17 1,600,843 2,040 New York St Dorm Auth Rev Secd Hosp North Gen Hosp Rfdg....................................... 5.750 02/15/18 2,231,842 3,780 New York St Mtg Agy Rev Ser 101 (AMT)........... 5.400 04/01/32 3,842,635 3,500 Port Auth NY & NJ Cons 97th Ser (AMT) (FGIC Insd)........................................... 6.650 01/15/23 3,643,325 4,000 Port Auth NY & NJ Spl Oblig Rev Spl Proj JFK Intl Arpt Terminal 6 (AMT) (MBIA Insd).......... 5.750 12/01/22 4,292,440 ------------- 34,207,744 -------------
10 See Notes to Financial Statements VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - ---------------------------------------------------------------------------------------------- NORTH CAROLINA 6.9% $1,500 North Carolina Eastn Muni Pwr Agy Pwr Sys Rev Ser D........................................... 6.700% 01/01/19 $ 1,657,065 11,000 North Carolina Muni Pwr Agy No 1 Catawba Elec Rev Rfdg (MBIA Insd)............................ 6.000 01/01/12 12,568,820 3,000 North Carolina Muni Pwr Agy Ser A (MBIA Insd)... 5.250 01/01/19 3,165,360 ------------- 17,391,245 ------------- NORTH DAKOTA 0.3% 700 North Dakota St Hsg Fin Agy Ser C (AMT)......... 5.550 07/01/29 718,305 ------------- OHIO 3.4% 700 Akron, OH Ctf Part Akron Muni Baseball Stad Proj............................................ 6.500 12/01/07 751,499 1,190 Bowling Green St Univ OH (FGIC Insd)............ 5.750 06/01/14 1,330,301 500 Cuyahoga Cnty, OH Hosp Fac Rev Canton Inc Proj.. 7.500 01/01/30 550,700 3,000 Lucas Cnty, OH Hosp Rev Promedica Hlthcare Oblig Rfdg (MBIA Insd)................................ 6.000 11/15/07 3,312,120 1,500 Mahoning Cnty, OH Hosp Fac Forum Hlth Oblig Group Ser A..................................... 6.000 11/15/32 1,562,520 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 ------------- 8,543,780 ------------- OKLAHOMA 4.3% 690 Central OK Transn & Pkg Auth Pkg Sys (AMBAC Insd)........................................... 5.000 07/01/19 711,721 625 Central OK Transn & Pkg Auth Pkg Sys (AMBAC Insd)........................................... 5.000 07/01/20 641,844 4,770 McAlester, OK Pub Wks Auth Util Cap Apprec (FSA Insd)........................................... * 02/01/34 919,608 1,300 Sapulpa, OK Muni Auth Cap Impt Rev Rfdg (Prerefunded @ 07/01/10) (FSA Insd)............. 5.750 07/01/30 1,488,201 1,000 Tulsa Cnty, OK Pub Fac Auth Cap Impt Rev (AMBAC Insd)........................................... 6.250 11/01/22 1,150,800 2,000 Tulsa, OK Indl Auth Hosp Rev Hillcrest Med Cent Proj Rfdg (Escrowed to Maturity) (Connie Lee Insd)........................................... 6.125 06/01/05 2,099,580 3,140 Tulsa, OK Indl Auth Hosp Rev Hillcrest Med Cent Proj Rfdg (Escrowed to Maturity) (Connie Lee Insd)........................................... 6.250 06/01/08 3,555,548 230 University of Oklahoma Rev Mult Facs (MBIA Insd)........................................... 5.000 06/01/20 236,693 ------------- 10,803,995 -------------
See Notes to Financial Statements 11 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - ---------------------------------------------------------------------------------------------- OREGON 3.2% $2,500 Oregon Hlth Sciences Univ Insd Ser A (MBIA Insd)........................................... 5.250% 07/01/22 $ 2,608,575 5,000 Oregon St Dept Admin Ser C Rfdg (MBIA Insd)..... 5.250 11/01/18 5,288,250 ------------- 7,896,825 ------------- PENNSYLVANIA 7.3% 2,000 Harrisburg, PA Auth Res Gtd Sub Ser D-2 (FSA Insd)........................................... 5.000 12/01/33 2,124,480 1,000 Harrisburg, PA Cap Apprec Nts Ser F Rfdg (AMBAC Insd)........................................... * 03/15/15 605,690 1,865 Harrisburg, PA Cap Apprec Ser D Rfdg (AMBAC Insd)........................................... * 09/15/15 1,103,875 1,865 Harrisburg, PA Cap Apprec Ser D Rfdg (AMBAC Insd)........................................... * 03/15/16 1,068,757 1,000 Philadelphia, PA Sch Dist Ser A (FSA Insd)...... 5.750 02/01/13 1,116,630 3,500 State Pub Sch Bldg Auth PA Sch Rev Lease Philadelphia Sch Dist Proj (FSA Insd)........... 5.000 06/01/33 3,486,560 3,000 Susquehanna Area Regl Arpt Auth PA Ser A (AMT) (AMBAC Insd).................................... 5.375 01/01/21 3,108,900 5,415 Susquehanna Area Regl Arpt Auth PA Ser A (AMT) (AMBAC Insd).................................... 5.375 01/01/22 5,584,490 ------------- 18,199,382 ------------- RHODE ISLAND 0.6% 1,480 Rhode Island St Econ Dev Ser A Rfdg (AMT) (FSA Insd)........................................... 5.000 07/01/19 1,485,165 ------------- SOUTH CAROLINA 1.5% 1,250 Easley, SC Util Rev Comb (FSA Insd)............. 5.250 12/01/18 1,325,150 2,500 South Carolina Jobs Econ Dev Auth Indl Rev Elec & Gas Co Proj Ser A (AMBAC Insd)................ 5.200 11/01/27 2,554,600 ------------- 3,879,750 ------------- SOUTH DAKOTA 0.6% 1,375 Deadwood, SD Ctfs Partn (ACA Insd).............. 6.375 11/01/20 1,464,636 ------------- TENNESSEE 0.9% 1,000 Elizabethton, TN Hlth & Ed Fac Brd Rev Hosp First Mtg Ser B Impt & Rfdg..................... 8.000 07/01/33 1,155,600 1,000 Johnson City, TN Hlth & Ed Fac Brd Hosp Rev First Mtg Mtn St Hlth Ser A Rfdg (MBIA Insd).... 7.500 07/01/25 1,233,310 ------------- 2,388,910 ------------- TEXAS 19.4% 980 Austin, TX Utility Sys Rev Comb (AMBAC Insd).... 6.500 11/15/05 1,051,109 20 Austin, TX Utility Sys Rev Comb Rfdg (Escrowed to Maturity) (AMBAC Insd)....................... 6.500 11/15/05 21,482 2,545 Dallas Cnty, TX Cmnty College Fin Sys (AMBAC Insd)........................................... 5.375 02/15/17 2,723,888
12 See Notes to Financial Statements VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - ---------------------------------------------------------------------------------------------- TEXAS (CONTINUED) $3,000 Dallas Cnty, TX Util & Reclamation Dist Ser B Rfdg (AMBAC Insd)............................... 5.875% 02/15/29 $ 3,078,930 2,500 Dallas, TX Wtrwks & Swr Sys Rev & Impt Rfdg (FSA Insd)........................................... 5.375 10/01/18 2,696,300 5,500 Dallas-Fort Worth, TX Intl Arpt Rev Impt Jt Ser A Rfdg (AMT) (FGIC Insd)........................ 5.500 11/01/31 5,633,980 1,500 Dallas-Fort Worth, TX Intl Arpt Rev Jt Ser A (AMT) (FGIC Insd)............................... 5.750 11/01/30 1,549,170 4,000 Dallas-Fort Worth, TX Intl Arpt Rev Jt Ser A (AMT) (FSA Insd)................................ 5.500 11/01/21 4,197,640 1,135 Fort Worth, TX Gen Purp Ser A Rfdg.............. 5.000 03/01/20 1,165,168 6,000 Harris Cnty, TX Flood Ctl Dist Contract Ser B Rfdg............................................ 5.000 10/01/22 6,101,220 2,000 Houston, TX Arpt Sys Rev Sub Lien (FSA Insd).... 5.500 07/01/20 2,144,940 3,000 Houston, TX Arpt Sys Rev Sub Lien Ser A (AMT) (FSA Insd)...................................... 5.625 07/01/30 3,067,260 5,000 Houston, TX Arpt Sys Rev Sub Lien Ser A (AMT) (FSA Insd)...................................... 5.125 07/01/32 4,911,850 1,500 Metropolitan Hlth Fac Dev Corp TX Wilson N Jones Mem Hosp Proj................................... 7.250 01/01/31 1,415,415 5,000 North Cent TX Hlth Fac Dev Hosp Childrens Med Ctr Dallas (AMBAC Insd)......................... 5.250 08/15/32 5,081,550 1,184 Texas Gen Svcs Comm Partn Int Lease Purch Ctfs.. 7.250 08/01/11 1,201,866 2,360 University of Texas Rev Fin Sys Ser B........... 5.250 08/15/20 2,495,794 ------------- 48,537,562 ------------- WASHINGTON 10.0% 9,850 Bellevue, WA Convention Cent Comp Int Rfdg (MBIA Insd)........................................... * 02/01/25 3,149,833 3,750 Chelan Cnty, WA Pub Util Dist No. 001 Cons Rev Chelan Hydro Ser A (AMT) (MBIA Insd)............ 5.600 01/01/36 3,882,338 5,000 Energy Northwest WA Elec Rev Columbia Generating Ser A Rfdg (FSA Insd)........................... 5.500 07/01/16 5,414,600 2,000 Port Seattle, WA Rev Ser B (AMT) (MBIA Insd).... 5.625 02/01/24 2,063,640 4,000 Tacoma, WA Elec Sys Rev Ser B Rfdg (FSA Insd)... 5.500 01/01/11 4,445,600 2,900 Thurston & Pierce Cntys, WA (FSA Insd).......... 5.000 12/01/22 2,951,794 5,125 Washington St Pub Pwr Supply Sys Nuclear Proj No 3 Rev Ser C Rfdg (MBIA Insd).................... * 07/01/14 3,192,158 ------------- 25,099,963 ------------- WEST VIRGINIA 3.2% 8,000 Harrison Cnty, WV Cmnty Solid Waste Disp Rev West Penn Pwr Co Proj Ser A (AMT) (MBIA Insd)... 6.875 04/15/22 8,031,680 -------------
See Notes to Financial Statements 13 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - ---------------------------------------------------------------------------------------------- WISCONSIN 0.7% $1,500 Southeast WI Professional Baseball Pk Dist Sales Tax Rev Ser A Rfdg (MBIA Insd).................. 5.500% 12/15/20 $ 1,667,655 ------------- TOTAL LONG-TERM INVESTMENTS 157.5% (Cost $373,055,628)......................................................... 394,374,438 SHORT-TERM INVESTMENT 0.2% (Cost $400,000)............................................................. 400,000 ------------- TOTAL INVESTMENTS 157.7% (Cost $373,455,628)......................................................... 394,774,438 OTHER ASSETS IN EXCESS OF LIABILITIES 2.2%................................... 5,610,546 PREFERRED SHARES (INCLUDING ACCRUED DISTRIBUTIONS) (59.9%)................... (150,051,581) ------------- NET ASSETS APPLICABLE TO COMMON SHARES 100.0%................................ $ 250,333,403 =============
* Zero coupon bond (a) Non-income producing security. (b) This borrower has filed for protection in federal bankruptcy court. (c) Security is a "step-up" bond where the coupon increases or steps up at a predetermined date. (d) 144A securities are those which are exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may only be resold in transactions exempt from registration which are normally those transactions with qualified institutional buyers. (e) These securities are restricted and may be resold only in transactions exempt from registration which are normally those transactions with qualified institutional buyers. Restricted securities comprise 0.9% of net assets applicable to common shares. (f) All or a portion of these securities have been physically segregated in connection with open futures contracts. ACA--American Capital Access AMBAC--AMBAC Indemnity Corp. AMT--Alternative Minimum Tax Connie Lee--Connie Lee Insurance Co. FGIC--Financial Guaranty Insurance Co. FHA--Federal Housing Administration FNMA--Federal National Mortgage Association FSA--Financial Security Assurance Inc. GNMA--Government National Mortgage Association MBIA--Municipal Bond Investors Assurance Corp. XLCA--XL Capital Assurance Inc. 14 See Notes to Financial Statements VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST FINANCIAL STATEMENTS Statement of Assets and Liabilities April 30, 2004 (Unaudited) ASSETS: Total Investments (Cost $373,455,628)....................... $394,774,438 Cash........................................................ 184,246 Receivables: Interest.................................................. 6,073,772 Investments Sold.......................................... 125,597 Other....................................................... 1,481 ------------ Total Assets............................................ 401,159,534 ------------ LIABILITIES: Payables: Investment Advisory Fee................................... 199,200 Variation Margin on Futures............................... 114,875 Income Distributions--Common Shares....................... 79,345 Administrative Fee........................................ 16,600 Other Affiliates.......................................... 16,146 Trustees' Deferred Compensation and Retirement Plans........ 247,471 Accrued Expenses............................................ 100,913 ------------ Total Liabilities....................................... 774,550 Preferred Shares (including accrued distributions).......... 150,051,581 ------------ NET ASSETS APPLICABLE TO COMMON SHARES...................... $250,333,403 ============ NET ASSET VALUE PER COMMON SHARE ($250,333,403 divided by 15,357,684 shares outstanding)............................ $ 16.30 ============ NET ASSETS CONSIST OF: Common Shares ($.01 par value with an unlimited number of shares authorized, 15,357,684 shares issued and outstanding).............................................. $ 153,577 Paid in Surplus............................................. 226,773,592 Net Unrealized Appreciation................................. 22,067,277 Accumulated Undistributed Net Investment Income............. 1,718,912 Accumulated Net Realized Loss............................... (379,955) ------------ NET ASSETS APPLICABLE TO COMMON SHARES...................... $250,333,403 ============ PREFERRED SHARES ($.01 par value, authorized 100,000,000 shares, 6,000 issued with liquidation preference of $25,000 per share)........................................ $150,000,000 ============ NET ASSETS INCLUDING PREFERRED SHARES....................... $400,333,403 ============
See Notes to Financial Statements 15 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST FINANCIAL STATEMENTS continued Statement of Operations For the Six Months Ended April 30, 2004 (Unaudited) INVESTMENT INCOME: Interest.................................................... $10,414,466 ----------- EXPENSES: Investment Advisory Fee..................................... 1,229,604 Preferred Share Maintenance................................. 198,775 Administrative Fee.......................................... 102,467 Trustees' Fees and Related Expenses......................... 58,291 Legal....................................................... 22,115 Custody..................................................... 12,922 Other....................................................... 121,685 ----------- Total Expenses.......................................... 1,745,859 ----------- NET INVESTMENT INCOME....................................... $ 8,668,607 =========== REALIZED AND UNREALIZED GAIN/LOSS: Realized Gain/Loss: Investments............................................... $ 1,306,498 Futures................................................... (3,095,910) ----------- Net Realized Loss........................................... (1,789,412) ----------- Unrealized Appreciation/Depreciation: Beginning of the Period................................... 25,976,471 End of the Period: Investments............................................. 21,318,810 Futures................................................. 748,467 ----------- 22,067,277 ----------- Net Unrealized Depreciation During the Period............... (3,909,194) ----------- NET REALIZED AND UNREALIZED LOSS............................ $(5,698,606) =========== DISTRIBUTIONS TO PREFERRED SHAREHOLDERS..................... $ (853,706) =========== NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM OPERATIONS................................................ $ 2,116,295 ===========
16 See Notes to Financial Statements VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST 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................................... $ 8,668,607 $ 18,197,414 Net Realized Gain/Loss.................................. (1,789,412) 6,086,249 Net Unrealized Depreciation During the Period........... (3,909,194) (4,641,387) Distributions to Preferred Shareholders: Net Investment Income................................. (532,318) (1,239,349) Net Realized Gain..................................... (321,388) (537,720) ------------ ------------ Change in Net Assets Applicable to Common Shares from Operations............................................ 2,116,295 17,865,207 Distributions to Common Shareholders: Net Investment Income................................. (8,797,232) (17,777,125) Net Realized Gain..................................... (4,378,366) (7,109,923) ------------ ------------ NET CHANGE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM INVESTMENT ACTIVITIES............................ (11,059,303) (7,021,841) FROM CAPITAL TRANSACTIONS: Value of Common Shares Issued Through Dividend Reinvestment.......................................... 81,435 -0- ------------ ------------ TOTAL DECREASE IN NET ASSETS APPLICABLE TO COMMON SHARES................................................ (10,977,868) (7,021,841) NET ASSETS APPLICABLE TO COMMON SHARES: Beginning of the Period................................. 261,311,271 268,333,112 ------------ ------------ End of the Period (Including accumulated undistributed net investment income of $1,718,912 and $2,379,855, respectively)......................................... $250,333,403 $261,311,271 ============ ============
See Notes to Financial Statements 17 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST 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) 2001 -------------------------------------------- NET ASSET VALUE, BEGINNING OF THE PERIOD........ $ 17.02 $ 17.48 $ 17.59 $ 16.29 ------- ------- ------- ------- Net Investment Income......................... .56 1.19 1.23 1.26 Net Realized and Unrealized Gain/Loss......... (.37) .09 .15 1.29 Common Share Equivalent of Distributions Paid to Preferred Shareholders: Net Investment Income....................... (.03) (.08) (.09) (.32) Net Realized Gain........................... (.02) (.04) (.08) (.01) ------- ------- ------- ------- Total from Investment Operations................ .14 1.16 1.21 2.22 Distributions Paid to Common Shareholders: Net Investment Income....................... (.57) (1.16) (1.08) (.92) Net Realized Gain........................... (.29) (.46) (.24) -0- ------- ------- ------- ------- NET ASSET VALUE, END OF THE PERIOD.............. $ 16.30 $ 17.02 $ 17.48 $ 17.59 ======= ======= ======= ======= Common Share Market Price at End of the Period................................. $ 14.73 $ 16.65 $ 16.04 $ 15.65 Total Return (b)................................ -6.89%* 14.53% 11.36% 21.42% Net Assets Applicable to Common Shares at End of the Period (In millions)...................... $ 250.3 $ 261.3 $ 268.3 $ 270.0 Ratio of Expenses to Average Net Assets Applicable to Common Shares (c)............... 1.34% 1.28% 1.42% 1.58% Ratio of Net Investment Income to Average Net Assets Applicable to Common Shares (c)........ 6.65% 6.90% 7.17% 7.40% Portfolio Turnover.............................. 8%* 36% 43% 34% SUPPLEMENTAL RATIOS: Ratio of Expenses to Average Net Assets Including Preferred Shares (c)................ .85% .81% .91% 1.00% Ratio of Net Investment Income to Average Net Assets Applicable to Common Shares (d)........ 6.24% 6.43% 6.61% 5.54% SENIOR SECURITIES: Total Preferred Shares Outstanding.............. 6,000 6,000 6,000 6,000 Asset Coverage Per Preferred Share (e).......... $66,731 $68,560 $69,736 $70,006 Involuntary Liquidating Preference Per Preferred Share......................................... $25,000 $25,000 $25,000 $25,000 Average Market Value Per Preferred Share........ $25,000 $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 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 .03%. 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. 18
YEAR ENDED OCTOBER 31, - ------------------------------------------------------------------------------ 2000 1999 1998 1997 1996 1995 1994 - ------------------------------------------------------------------------------ $ 15.67 $ 17.61 $ 16.96 $ 16.12 $ 15.85 $ 14.39 $ 17.30 -------- ------- -------- -------- -------- -------- -------- 1.27 1.25 1.26 1.26 1.27 1.28 1.30 .65 (1.97) .64 .83 .27 1.58 (2.92) (.40) (.32) (.35) (.35) (.36) (.39) (.27) -0- -0- -0- -0- -0- -0- -0- -------- ------- -------- -------- -------- -------- -------- 1.52 (1.04) 1.55 1.74 1.18 2.47 (1.89) (.90) (.90) (.90) (.90) (.91) (1.01) (1.02) -0- -0- -0- -0- -0- -0- -0- -------- ------- -------- -------- -------- -------- -------- $ 16.29 $ 15.67 $ 17.61 $ 16.96 $ 16.12 $ 15.85 $ 14.39 ======== ======= ======== ======== ======== ======== ======== $13.6875 $ 13.50 $ 16.50 $15.0625 $ 13.75 $ 13.625 $ 13.00 8.28% -13.29% 15.91% 16.54% 7.72% 12.70% -14.96% $ 250.1 $ 240.5 $ 270.3 $ 260.3 $ 247.5 $ 243.3 $ 220.9 1.68% 1.62% 1.61% 1.64% 1.66% 1.75% 1.69% 8.04% 7.35% 7.25% 7.64% 7.96% 8.45% 8.14% 29% 30% 29% 49% 85% 70% 76% 1.03% 1.03% 1.03% 1.03% 1.03% 1.06% 1.05% 5.49% 5.48% 5.24% 5.51% 5.73% 5.87% 6.43% 6,000 6,000 3,000 3,000 3,000 3,000 3,000 $ 66,683 $65,086 $140,098 $136,771 $132,502 $131,094 $123,637 $ 25,000 $25,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 25,000 $25,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
See Notes to Financial Statements 19 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2004 (UNAUDITED) 1. SIGNIFICANT ACCOUNTING POLICIES Van Kampen Municipal Opportunity Trust (the "Trust") is registered as a diversified, closed-end management investment company under the Investment Company Act of 1940 (the "1940 Act"), 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 commenced investment operations on April 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. 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 had no 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. 20 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST 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........................ $373,314,092 ============ Gross tax unrealized appreciation........................... 22,604,685 Gross tax unrealized depreciation........................... (1,144,339) ------------ Net tax unrealized appreciation on investments.............. $ 21,460,346 ============
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, 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:
2003 Distributions paid from: Ordinary income........................................... $1,944,011 Long-term capital gain.................................... 5,824,969 ---------- $7,768,980 ==========
As of October 31, 2003, the components of distributable earnings on a tax basis were as follows: Undistributed ordinary income............................... $1,280,181 Undistributed long-term capital gain........................ 3,842,712
Net realized gains and 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 $13,200 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 21 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2004 (UNAUDITED) continued approximately $21,300 representing Van Kampen's cost of providing accounting and legal 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. CAPITAL TRANSACTIONS At April 30, 2004 and October 31, 2003, paid in surplus related to common shares aggregated $226,773,592 and $226,692,205, respectively. Transactions in common shares were as follows:
SIX MONTHS ENDED YEAR ENDED APRIL 30, 2004 OCTOBER 31, 2003 Beginning Shares........................................ 15,352,891 15,352,891 Shares Issued Through Dividend Reinvestment............. 4,793 -0- ---------- ---------- Ending Shares........................................... 15,357,684 15,352,891 ========== ==========
4. INVESTMENT TRANSACTIONS During the period, the cost of purchases and proceeds from sales of investments, excluding short-term investments, were $33,510,052 and $41,337,978, respectively. 5. 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. Summarized below are the specific types of derivative financial instruments used by the Trust. 22 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2004 (UNAUDITED) continued A. FUTURES CONTRACTS 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 futures on U.S. Treasury Bonds and typically closes the contract prior to the delivery date. These contracts are generally used to manage the portfolio's effective maturity and duration. Upon entering into futures contracts, the Trust maintains, in a segregated account with its custodian, an amount of cash or liquid securities with a value equal to a percentage of the contract amount with either a futures commission merchant pursuant to rules and regulations promulgated under the 1940 Act, 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). 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............................. 584 Futures Opened.............................................. 1,117 Futures Closed.............................................. (1,189) ------ Outstanding at April 30, 2004............................... 512 ======
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 5-Year Futures June 2004 (Current Notional Value of $109,938 per contract).................. 425 $581,479 U.S. Treasury Notes 10-Year Futures June 2004 (Current Notional Value of $110,500 per contract).................. 87 166,988 --- -------- 512 $748,467 === ========
6. PREFERRED SHARES The Trust has outstanding 6,000 Auction Preferred Shares ("APS") in two series of 3,000 shares each. Dividends are cumulative and the dividend rate on each series is currently reset every 28 days through an auction process. The average rate in effect on April 30, 2004 was 1.05%. During the six months ended April 30, 2004, the rates ranged from 0.880% to 1.850%. 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. 23 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST 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, New York 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. 24 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. VMO SAR 6/04 RN04-00751P-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 Municipal Opportunity Trust 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 c85422exv99wcert.txt CERTIFICATION I, Ronald E. Robison, certify that: 1. I have reviewed this report on Form N-CSR of Van Kampen Municipal Opportunity Trust; 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 Municipal Opportunity Trust; 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 c85422exv99w906cert.txt 906 CERTIFICATION Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 Name of Issuer: Van Kampen Municipal Opportunity Trust 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 Municipal Opportunity Trust and will be retained by Van Kampen Municipal Opportunity Trust 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 Municipal Opportunity Trust 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 Municipal Opportunity Trust and will be retained by Van Kampen Municipal Opportunity Trust 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-----