-----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, Bsb7DgAW2aT5cWkRfoPn8sq9Bf+SISwtZrujprQoql3/VMioVwKIUAkPpTFhyqcI kt5qhbeFsb9RQ8paYNpyJg== 0000950137-07-019135.txt : 20071228 0000950137-07-019135.hdr.sgml : 20071228 20071228125006 ACCESSION NUMBER: 0000950137-07-019135 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20071031 FILED AS OF DATE: 20071228 DATE AS OF CHANGE: 20071228 EFFECTIVENESS DATE: 20071228 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-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-06567 FILM NUMBER: 071331140 BUSINESS ADDRESS: STREET 1: VAN KAMPEN INVESTMENTS INC. STREET 2: 522 FIFTH AVENUE CITY: NEW YORK STATE: NY ZIP: 10036 BUSINESS PHONE: 212-296-6963 MAIL ADDRESS: STREET 1: VAN KAMPEN INVESTMENTS INC. STREET 2: 522 FIFTH AVENUE CITY: NEW YORK STATE: NY ZIP: 10036 FORMER COMPANY: FORMER CONFORMED NAME: VAN KAMPEN 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-CSR 1 c21517nvcsr.txt CERTIFIED SHAREHOLDER REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-6567 Van Kampen Municipal Opportunity Trust (Exact name of registrant as specified in charter) 522 Fifth Avenue, New York, New York 10036 (Address of principal executive offices) (Zip code) Ronald Robison 522 Fifth Avenue, New York, New York 10036 (Name and address of agent for service) Registrant's telephone number, including area code: 212-762-4000 Date of fiscal year end: 10/31 Date of reporting period: 10/31/07 Item 1. Report to Shareholders The Trust's annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 is as follows: Welcome, Shareholder In this report, you'll learn about how your investment in Van Kampen Municipal Opportunity Trust performed during the annual period. The portfolio management team will provide an overview of the market conditions and discuss some of the factors that affected investment performance during the reporting period. In addition, this report includes the trust's financial statements and a list of trust investments as of October 31, 2007. 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 10/31/07
MUNICIPAL OPPORTUNITY TRUST SYMBOL: VMO - ------------------------------------------------------------ AVERAGE ANNUAL BASED ON BASED ON TOTAL RETURNS NAV MARKET PRICE Since Inception (4/24/92) 7.29% 6.72% 10-year 6.25 6.69 5-year 5.19 5.36 1-year -2.02 2.40 - ------------------------------------------------------------
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE RESULTS, AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE FIGURES SHOWN. FOR THE MOST RECENT MONTH-END PERFORMANCE FIGURES, PLEASE VISIT VANKAMPEN.COM OR SPEAK WITH YOUR FINANCIAL ADVISOR. INVESTMENT RETURNS, 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. NAV per share is determined by dividing the value of the trust's portfolio securities, cash and other assets, less all liabilities and preferred shares, 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 trust's advisor has waived or reimbursed fees and expenses from time to time. Absent such waivers/reimbursements the trust's returns would have been lower. The Lehman Brothers Municipal Bond Index is a 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. It is not possible to invest directly in an index. 1 Trust Report FOR THE 12-MONTH PERIOD ENDED OCTOBER 31, 2007 MARKET CONDITIONS Strong fundamental and technical factors supported the municipal bond market throughout the first eight months of the reporting year, helping it to perform well. In July, however, contagion from the troubled subprime mortgage sector led to an increasingly illiquid and volatile market, and a flight to quality that led Treasury bonds to outperform all other sectors of the fixed income market, including both investment grade and below investment grade municipal bonds. Up until that time, demand for municipal bonds had been quite strong as institutional investors and non-traditional buyers such as hedge funds and arbitrage investors continued to flock to the market. As market liquidity began to dry up, however, institutional demand fell off and refunding activity, which had been robust, virtually halted. The decrease in demand put significant pressure on prices and credit spreads widened, with the most significant widening occurring in the lower-rated segments of the market. In mid-September, following the 50 basis point reduction in the target federal funds rate by the Federal Open Market Committee (the "Fed"), the market began to stabilize, liquidity improved, and municipal credit spreads began to tighten again. These positive trends continued through the end of October, when the Fed reduced rates again, this time by 25 basis points, bringing the target federal funds rate to 4.5 percent. Although the performance of the municipal market improved over the last two months of the period, it had not fully recovered as of period end. Municipal bond issuance remained firm, despite a slowdown in the summer months, and demand picked up again late in the period as the relative cheapness of municipal bonds versus Treasuries attracted buyers. Overall, municipal bond yields ended the period higher, but most of the yield increases occurred in the intermediate to long maturity portion of the yield curve, while yields on the front end of the curve declined. As a result, the municipal yield curve steepened over the course of the period, with the differential between two-year and 30-year maturities widening to about 100 basis points. 2 PERFORMANCE ANALYSIS The Trust's return 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 and preferred shares, 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, as they did during the reporting period. On both an NAV basis and a market price basis, the Trust underperformed its benchmark index, the Lehman Brothers Municipal Bond Index. TOTAL RETURN FOR THE 12-MONTH PERIOD ENDED OCTOBER 31, 2007
- ----------------------------------------------------- LEHMAN BROTHERS BASED ON BASED ON MUNICIPAL BOND NAV MARKET PRICE INDEX -2.02% 2.40% 2.91% - -----------------------------------------------------
Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. 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. Various strategies drove the Trust's performance over the course of the reporting period, most of which focused on seeking to enhance the Trust's yield. Given the relatively flat shape of the yield cure during most of the period, we favored bonds with maturities of 25 years or more for their more attractive yields. This strategy was beneficial early in the period, but hindered overall performance as Fed easing late in the period pushed short-term rates lower, causing the short end of the curve to considerably outperform the long end. We also added to positions in the lower-rated, higher-yielding segment of the market, primarily BBB and non-rated credits in the health care and tobacco sectors. These securities were additive to performance for much of the period as lower-rated bonds outperformed higher-quality issues, but in the last few months the performance of the lower-rated segment of the market suffered due to significant spread widening. As a result, the Trust's holdings in both the health care and tobacco sectors hindered performance for the overall period. Tobacco bonds were particularly hard hit. Although the fundamental credit quality of tobacco bonds remained solid throughout the period, the combination of an abundant supply, the liquidity squeeze in the market, and the flight to quality caused spreads in the sector to widen dramatically. Additionally, during the course of the period, a large amount of older tobacco bonds were pre-refunded but the Trust was not able to benefit from these refundings as it held primarily new tobacco bonds. 3 In an effort to further enhance yield, we increased the portfolio's stake in inverse floating-rate securities.* Inverse floating-rate securities are, by nature, highly sensitive to interest rate changes and the Trust's holdings in these securities held back returns as rates generally rose during the period. We also increased the Trust's allocation to higher-rated housing bonds. Housing bond prices declined during the period due to ongoing supply and spread widening in the sector, which led the Trust's holdings there to dampen performance. Holdings in transportation bonds also hindered performance. To help manage interest-rate risk, we implemented a hedge through a short position in U.S. Treasury futures. This proved to be an effective hedging strategy, but it dampened returns slightly as the flight to quality in the summer months drove Treasury prices up and rates lower. Positive contributors to performance for the fiscal year included holdings in education, utility, and industrial development revenue/pollution control revenue bonds. Strong security selection helped holdings in each of these sectors to outperform those of the benchmark Lehman Brothers Municipal Bond Index. Additionally, strong security selection in tax-supported debt helped to mitigate the negative effect of an underweight to this sector, which performed well during the reporting period. The Trust remained well diversified across a broad range of municipal market sectors. As of the end of the reporting period, health care, public power, and industrial development revenue/pollution control revenue bonds represented the portfolio's largest sector weightings. The Trustees have approved a procedure whereby the trust may, when appropriate, repurchase its shares in the open market or in privately negotiated transactions at a price not above market value or NAV, whichever is lower at the time of purchase. This may help support the market value of the trust's shares. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Trust in the future. * An inverse floating-rate security, or "inverse floater", is a variable rate security whose coupon rate changes in the opposite direction from the change in the reference rate used to calculate the coupon rate. 4
RATINGS ALLOCATION AS OF 10/31/2007 AAA/Aaa 55.4% AA/Aa 13.2 A/A 8.4 BBB/Baa 13.6 BB/Ba 0.2 B/B 0.3 Non-Rated 8.9 TOP 5 SECTORS AS OF 10/31/2007 Hospital 21.5% Airports 10.9 Wholesale Electric 9.8 Master Tobacco Settlement 7.8 General Purpose 5.9 SUMMARY OF INVESTMENTS BY STATE CLASSIFICATION AS OF 10/31/07 California 9.5% New Jersey 8.9 Texas 8.4 Illinois 8.2 New York 6.6 Washington 4.5 North Carolina 4.5 Pennsylvania 3.5 Alabama 3.2 South Carolina 2.9 Nevada 2.9 Missouri 2.5 Indiana 2.5 Colorado 2.2 Massachusetts 2.1 Arizona 1.9 Georgia 1.8 Maryland 1.8 Oklahoma 1.8 Louisiana 1.8 Florida 1.7 Nebraska 1.4 Kentucky 1.4 Minnesota 1.3 Tennessee 1.3 Puerto Rico 1.2 District of Columbia 1.1 South Dakota 1.1 Oregon 1.0 West Virginia 0.9 Wisconsin 0.9 Connecticut 0.9 Ohio 0.8 Iowa 0.7
(continued on next page)
5
SUMMARY OF INVESTMENTS BY STATE CLASSIFICATION AS OF 10/31/07 (continued from previous page) Michigan 0.7 Kansas 0.4 Alaska 0.3 New Mexico 0.3 New Hampshire 0.3 Utah 0.3 Virginia 0.2 Wyoming 0.1 North Dakota 0.1 Idaho 0.1 ----- Total Investments 100.0%
Subject to change daily. Provided for informational purposes only and should not be deemed as a recommendation to buy or sell the securities mentioned or securities in the sectors shown above. Ratings and summary of investments by state classification are as a percentage of total investments. Sectors are as a percentage of total long-term investments. Securities are classified by sectors that represent broad groupings of related industries. 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. Rating allocations based upon ratings as issued by Standard and Poor's and Moody's, respectively. 6 CHANGES IN INVESTMENT POLICIES The Board of Trustees of the Trust recently approved a non-fundamental investment policy for the Trust allowing it to invest up to 20 percent of its assets in unrated securities that have been determined by Van Kampen Asset Management (the "Adviser") to be of comparable quality to those rated investment grade. This is in addition to the Trust's current non- fundamental policy allowing it to invest up to 20 percent of its assets in unrated securities that have been determined by the Adviser to be of comparable quality to those rated below investment grade (BB/Ba or B by Standard & Poor's, Moody's Investor Services, Inc. or Fitch Ratings, Inc.) Unrated securities may be less liquid than rated securities. This may have the effect of limiting the ability of the Trust to sell such securities at their fair value in response to changes in the economy or the financial markets. PORTFOLIO MANAGEMENT CHANGES Van Kampen Municipal Opportunity Trust is managed by the Adviser's Municipal Fixed Income team. Current members include William Black, Executive Director; Mark Paris, Executive Director; Robert W. Wimmel, Executive Director; and Wayne D. Godlin; Managing Director. FOR MORE INFORMATION ABOUT PORTFOLIO HOLDINGS Each Van Kampen trust provides a complete schedule of portfolio holdings in its semiannual and annual reports within 60 days of the end of the fund's second and fourth fiscal quarters. The semiannual reports and the annual reports are filed electronically with the Securities and Exchange Commission (SEC) on Form N-CSRS and Form N-CSR, respectively. Van Kampen also delivers the semiannual and annual reports to trust shareholders, and makes these reports available on its public Web site, www.vankampen.com. In addition to the semiannual and annual reports that Van Kampen delivers to shareholders and makes available through the Van Kampen public Web site, each trust files a complete schedule of portfolio holdings with the SEC for the trust's first and third fiscal quarters on Form N-Q. Van Kampen does not deliver the reports for the first and third fiscal quarters to shareholders, nor are the reports posted to the Van Kampen public Web site. You may, however, obtain the Form N-Q filings (as well as the Form N-CSR and N-CSRS filings) by accessing the SEC's Web site, http://www.sec.gov. You may also review and copy them at the SEC's Public Reference Room in Washington, DC. Information on the operation of the SEC's Public Reference Room may be obtained by calling the SEC at (800) SEC-0330. You can also request copies of these materials, upon payment of a duplicating fee, by electronic request at 7 the SEC's e-mail address (publicinfo@sec.gov) or by writing the Public Reference section of the SEC, Washington, DC 20549-0102. You may obtain copies of a trust's fiscal quarter filings by contacting Van Kampen Client Relations at (800) 341-2929. PROXY VOTING POLICY AND PROCEDURES AND PROXY VOTING RECORD You may obtain a copy of the Trust's Proxy Voting Policy and Procedures without charge, upon request, by calling toll free (800) 341-2929 or by visiting our Web site at www.vankampen.com. It is also available on the Securities and Exchange Commission's Web site at http://www.sec.gov. You may obtain information regarding how the Trust voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 without charge by visiting our Web site at www.vankampen.com. This information is also available on the Securities and Exchange Commission's Web site at http://www.sec.gov. 8 Investment Advisory Agreement Approval Both the Investment Company Act of 1940 and the terms of the Fund's investment advisory agreement require that the investment advisory agreement between the Fund and its investment adviser be approved annually both by a majority of the Board of Trustees and by a majority of the independent trustees voting separately. At meetings held on April 17, 2007 and May 30, 2007, the Board of Trustees, and the independent trustees voting separately, considered and ultimately determined that the terms of the investment advisory agreement are fair and reasonable and approved the continuance of the investment advisory agreement as being in the best interests of the Fund and its shareholders. In making its determination, the Board of Trustees considered materials that were specifically prepared by the investment adviser at the request of the Board and Fund counsel, and by an independent provider of investment company data contracted to assist the Board, relating to the investment advisory agreement review process. The Board also considered information received periodically about the portfolio, performance, the investment strategy, portfolio management team and fees and expenses of the Fund. Finally, the Board considered materials it had received in approving a reorganization of the Fund, materials it had received in connection with fee waivers currently in place for the Fund and materials it had received in connection with the share repurchase program currently in place for the Fund. The Board of Trustees considered the investment advisory agreement over a period of several months and the trustees held sessions both with the investment adviser and separate from the investment adviser in reviewing and considering the investment advisory agreement. In approving the investment advisory agreement, the Board of Trustees considered, among other things, the nature, extent and quality of the services provided by the investment adviser, the performance, fees and expenses of the Fund compared to other similar funds and other products, the investment adviser's expenses in providing the services and the profitability of the investment adviser and its affiliated companies. The Board of Trustees considered the extent to which any economies of scale experienced by the investment adviser are shared with the Fund's shareholders, and the propriety of breakpoints in the Fund's investment advisory fee schedule. The Board of Trustees considered comparative advisory fees of the Fund and other investment companies and/or other products at different asset levels, and considered the trends in the industry. The Board of Trustees evaluated other benefits the investment adviser and its affiliates derive from their relationship with the Fund. The Board of Trustees reviewed information about the foregoing factors and considered changes, if any, in such information since its previous approval. The Board of Trustees discussed the financial strength of the investment adviser and its affiliated companies and the capability of the personnel of the investment adviser, and specifically the strength and background of its portfolio management personnel. The Board of Trustees reviewed the statutory and 9 regulatory requirements for approval and disclosure of investment advisory agreements. The Board of Trustees, including the independent trustees, evaluated all of the foregoing and does not believe any single factor or group of factors control or dominate the review process, and, after considering all factors together, has determined, in the exercise of its business judgment, that approval of the investment advisory agreement is in the best interests of the Fund and its shareholders. The following summary provides more detail on certain matters considered but does not detail all matters considered. Nature, Extent and Quality of the Services Provided. On a regular basis, the Board of Trustees considers the roles and responsibilities of the investment adviser as a whole and for those specific portfolio management, support and trading functions servicing the Fund. The trustees discuss with the investment adviser the resources available and used in managing the Fund. The trustees also discuss certain other services which are provided on a cost-reimbursement basis by the investment adviser or its affiliates to the Van Kampen funds including certain accounting, administrative and legal services. The Board has determined that the nature, extent and quality of the services provided by the investment adviser support its decision to approve the investment advisory agreement. Performance, Fees and Expenses of the Fund. On a regular basis, the Board of Trustees reviews the performance, fees and expenses of the Fund compared to its peers and to appropriate benchmarks. In addition, the Board spends more focused time on the performance of the Fund and other funds in the Van Kampen complex, paying specific attention to underperforming funds. The trustees discuss with the investment adviser the performance goals and the actual results achieved in managing the Fund. When considering a fund's performance, the trustees and the investment adviser place emphasis on trends and longer-term returns (focusing on one-year, three-year and five-year performance with special attention to three-year performance) and, when a fund's weighted performance is under the fund's benchmark, they discuss the causes and where necessary seek to make specific changes to investment strategy or investment personnel. The Fund discloses more information about its performance elsewhere in this report. The trustees discuss with the investment adviser the level of advisory fees for this Fund relative to comparable funds and other products advised by the adviser and others in the marketplace. The trustees review not only the advisory fees but other fees and expenses (whether paid to the adviser, its affiliates or others) and the Fund's overall expense ratio. The Board has determined that the performance, fees and expenses of the Fund support its decision to approve the investment advisory agreement. Investment Adviser's Expenses in Providing the Service and Profitability. At least annually, the trustees review the investment adviser's expenses in providing services to the Fund and other funds advised by the investment adviser and the profitability of the investment adviser. These profitability reports are put together by the investment adviser with the oversight of the Board. The trustees 10 discuss with the investment adviser its revenues and expenses, including among other things, revenues for advisory services, portfolio management-related expenses, revenue sharing arrangement costs and allocated expenses both on an aggregate basis and per fund. The Board has determined that the analysis of the investment adviser's expenses and profitability support its decision to approve the investment advisory agreement. Economies of Scale. On a regular basis, the Board of Trustees considers the size of the Fund and how that relates to the Fund's expense ratio and particularly the Fund's advisory fee rate. In conjunction with its review of the investment adviser's profitability, the trustees discuss with the investment adviser how more (or less) assets can affect the efficiency or effectiveness of managing the Fund's portfolio and whether the advisory fee level is appropriate relative to current asset levels and/or whether the advisory fee structure reflects economies of scale as asset levels change. The Board has determined that its review of the actual and potential economies of scale of the Fund support its decision to approve the investment advisory agreement. Other Benefits of the Relationship. On a regular basis, the Board of Trustees considers other benefits to the investment adviser and its affiliates derived from its relationship with the Fund and other funds advised by the investment adviser. These benefits include, among other things, fees for transfer agency services provided to the funds, in certain cases research received by the adviser generated from commission dollars spent on funds' portfolio trading, and in certain cases distribution or service related fees related to funds' sales. The trustees review with the investment adviser each of these arrangements and the reasonableness of its costs relative to the services performed. The Board has determined that the other benefits received by the investment adviser or its affiliates support its decision to approve the investment advisory agreement. 11 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2007
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - -------------------------------------------------------------------------------------------- MUNICIPAL BONDS 191.9% ALABAMA 6.1% $ 1,000 Alabama Bldg Renovation Fin Auth Rev Rfdg (AMBAC Insd).................................. 5.625% 09/01/24 $ 1,051,000 4,000 Birmingham Baptist Med Ctr AL Spl Care Fac Fin Auth Rev Baptist Hlth Sys Inc Ser A........... 5.000 11/15/30 3,895,840 1,000 Jefferson Cnty, AL Ltd Oblig Sch Wt Ser A..... 5.000 01/01/24 1,033,400 4,250 Jefferson Cnty, AL Ltd Oblig Sch Wt Ser A..... 5.250 01/01/23 4,474,655 2,295 Marshall Cnty, AL Hlthcare Ser C.............. 6.000 01/01/32 2,405,918 5 Mobile, AL Indl Dev Brd Solid Waste Disp Rev Mobile Energy Svc Co Proj Rfdg................ 6.950 01/01/20 465 2,000 Montgomery, AL Wt (AMBAC Insd)................ 5.250 05/01/20 2,138,720 2,000 Montgomery Cnty, AL Pub Bldg Auth Rev Wt Fac Proj (MBIA Insd).............................. 5.000 03/01/31 2,068,020 14,850 University of AL at Birmingham Hosp Rev Ser A (MBIA Insd)................................... 5.000 09/01/41 15,098,292 -------------- 32,166,310 -------------- ALASKA 0.7% 1,000 Alaska St Hsg Fin Corp Gen Hsg Ser A (FGIC Insd)................................... 5.250 12/01/41 1,038,570 3,000 Northern Tob Sec Corp AK Tob Settlement Rev Asset Bkd Ser A............................... 5.000 06/01/46 2,552,910 -------------- 3,591,480 -------------- ARIZONA 3.6% 1,425 Arizona Cap Fac Fin Corp Student Hsg Rev AZ St Univ Proj..................................... 6.250 09/01/32 1,475,017 1,500 Maricopa Cnty, AZ Stad Dist Rfdg (AMBAC Insd).................................. 5.375 06/01/19 1,600,740 495 Pima Cnty, AZ Indl Dev Auth Indl Rev Lease Oblig Irvington Proj Tucson Rfdg Ser A (FSA Insd)......................................... 7.250 07/15/10 509,236 1,000 Salt Verde Fin Corp Gas Rev AZ Sr............. 5.250 12/01/20 1,040,830 14,840 University of AZ Med Ctr Corp................. 5.000 07/01/35 14,227,702 -------------- 18,853,525 -------------- CALIFORNIA 18.2% 2,630 Anaheim, CA Pub Fin Auth Lease Rev Cap Apprec Sub Pub Impt Proj Ser C (FSA Insd)............ * 09/01/20 1,487,554 2,400 Bay Area Govt Assn CA Rev Tax Alloc CA Redev Pool Ser A (XLCA Insd)........................ 5.250 09/01/29 2,512,632 1,050 California Cnty, CA Tob Sec Agy Asset Bkd Merced Cnty Rfdg Ser A........................ 5.125 06/01/38 941,440 2,000 California Cnty, CA Tob Sec Agy Asset Bkd Sonoma Cnty Corp Rfdg......................... 5.125 06/01/38 1,793,220 1,750 California Cnty, CA Tob Sec Agy Asset Bkd Sonoma Cnty Corp Rfdg......................... 5.250 06/01/45 1,575,157 1,800 California Hlth Fac Fin Auth Rev Kaiser Permanente Ser A.............................. 5.000 04/01/37 1,801,764
12 See Notes to Financial Statements VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2007 continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - -------------------------------------------------------------------------------------------- CALIFORNIA (CONTINUED) $ 4,200 California Hsg Fin Agy Rev Home Mtg Ser G (AMT) (a)..................................... 4.950% 08/01/23 $ 4,214,039 2,800 California Hsg Fin Agy Rev Home Mtg Ser G (AMT) (a)..................................... 5.050 02/01/29 2,809,359 2,000 California Pollutn Ctl Fin Auth Solid Waste Disp Rev Waste Mgmt Inc Proj Ser B (AMT)...... 5.000 07/01/27 1,915,340 15 California Rural Home Mtg Fin Auth Single Family Mtg Rev Ser C (GNMA Collateralized (AMT)......................................... 7.800 02/01/28 15,291 630 California St (AMBAC Insd).................... 5.125 10/01/27 636,634 2,000 California St Dept Wtr Res Pwr Ser A (Prerefunded @ 5/01/12)....................... 5.750 05/01/17 2,208,680 3,500 California St Pub Wk Brd Lease Rev Dept Corrections Ser C............................. 5.250 06/01/28 3,615,465 2,000 California St Pub Wk Brd Lease Rev Dept Mental Hlth Coalinga Ser A........................... 5.000 06/01/25 2,044,340 7,000 California Statewide Cmnty Dev Auth Rev Daughters of Charity Hlth Ser A............... 5.000 07/01/39 6,663,440 7,750 California Statewide Cmnty Dev Auth Rev Daughters of Charity Hlth Ser A............... 5.250 07/01/30 7,780,923 5,000 California Statewide Cmnty Dev Auth Rev Hlth Fac Adventist Hlth Ser A...................... 5.000 03/01/30 5,028,650 3,000 California Statewide Cmnty Dev Auth Rev Hlth Fac Adventist Hlth Ser A...................... 5.000 03/01/35 3,006,180 3,600 California Statewide Cmnty Dev Auth Rev Kaiser Permanente Ser B.............................. 5.000 03/01/41 3,573,756 5,200 California Statewide Cmnty Dev Auth Rev Kaiser Permanente Ser B.............................. 5.250 03/01/45 5,267,912 1,000 California Statewide Cmnty Front Porch Cmnty & Svc Ser A (c)................................. 5.125 04/01/37 964,640 5,000 Foothill/Eastern Corridor Agy CA Toll Rd Rev Cap Apprec Rfdg............................... * 01/15/25 1,868,150 4,000 Foothill/Eastern Corridor Agy CA Toll Rd Rev Conv Cap Apprec Sr Lien Ser A (d)............. 7.050 01/01/10 4,303,200 5,000 Golden St Tob Sec Corp CA Tob Settlement Rev Ser A-1....................................... 5.750 06/01/47 4,800,500 3,500 Rancho Mirage, CA Jt Pwrs Eisenhower Med Ctr Ser A......................................... 5.000 07/01/47 3,464,580 2,400 Tobacco Sec Auth Northn CA Tob Settlement Rev Asset Bkd Ser A-1............................. 5.375 06/01/38 2,233,584 1,600 Tobacco Sec Auth Northn CA Tob Settlement Rev Asset Bkd Ser A-1............................. 5.500 06/01/45 1,500,208 6,000 Tobacco Sec Auth Southn CA Tob Settlement Ser A-1........................................... 5.000 06/01/37 5,305,380
See Notes to Financial Statements 13 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2007 continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - -------------------------------------------------------------------------------------------- CALIFORNIA (CONTINUED) $ 12,000 Tobacco Sec Auth Southn CA Tob Settlement Ser A-1........................................... 5.125% 06/01/46 $ 10,565,760 1,600 Turlock, CA Hlth Fac Rev Ctf Partn Emanuel Med Ctr Inc....................................... 5.375 10/15/34 1,606,400 -------------- 95,504,178 -------------- COLORADO 4.2% 3,000 Colorado Hlth Fac Auth Rev Catholic Hlth Initiatives Ser A (d)......................... 5.500 03/01/32 3,190,740 2,500 Colorado Hlth Fac Auth Rev Covenant Retirement Cmnty Inc..................................... 5.000 12/01/35 2,375,200 3,700 Colorado Hlth Fac Auth Rev Evangelical Lutheran.......................... 5.000 06/01/35 3,599,989 1,000 Colorado Hlth Fac Auth Rev Hosp Portercare Adventist Hlth (Prerefunded @ 11/15/11)....... 6.500 11/15/31 1,119,350 645 Colorado Hsg Fin Auth Multi-Family Hsg Ins Mtg Ser B-2 (FHA Gtd) (AMT)....................... 5.800 10/01/28 652,340 41 Colorado Hsg Fin Auth Single Family Pgm Sr Ser A-2 (AMT)..................................... 7.250 05/01/27 42,268 15 Colorado Hsg Fin Auth Single Family Pgm Sr Ser C-1 (AMT)..................................... 7.550 11/01/27 15,257 1,005 Greeley, CO Multi-Family Rev Hsg Mtg Creek Stone (FHA Gtd) (AMT)......................... 5.950 07/01/28 1,017,522 530 Highlands Ranch Metro Dist No 2 CO (FSA Insd) (d)........................................... 6.500 06/15/11 583,721 470 Highlands Ranch Metro Dist No 2 CO (FSA Insd).................................... 6.500 06/15/11 517,470 955 Montezuma Cnty, CO Hosp Dist Hlth Fac Enterprise Hosp Rfdg.......................... 5.900 10/01/37 950,951 1,500 Park Creek Metro Dist CO Rev Sr Ltd Tax Ppty Rfdg.......................................... 5.500 12/01/37 1,477,155 1,500 Salida, CO Hosp Dist Rev...................... 5.250 10/01/36 1,359,660 3,500 Southlands Metro Dist No 1 CO Rfdg & Impt (Radian Insd)................................. 5.250 12/01/34 3,518,900 1,500 University of CO Hosp Auth Rev Ser A.......... 5.250 11/15/39 1,496,505 -------------- 21,917,028 -------------- CONNECTICUT 1.7% 6,500 Connecticut St Spl Oblig Pkg Rev Bradley Intl Arpt Ser A (ACA Insd) (AMT)................... 6.600 07/01/24 6,803,940 1,000 Hartford, CT Pkg Sys Rev Ser A (Prerefunded @ 7/01/10)...................................... 6.400 07/01/20 1,074,090 1,000 Mashantucket West Pequot Tribe CT Spl Rev Ser A (c)......................................... 5.500 09/01/36 999,200 -------------- 8,877,230 --------------
14 See Notes to Financial Statements VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2007 continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - -------------------------------------------------------------------------------------------- DISTRICT OF COLUMBIA 2.2% $ 2,500 District Columbia Rev Gonzaga College (FSA Insd).................................... 5.250% 07/01/32 $ 2,619,150 8,850 Metropolitan WA Auth Sys Ser A (FGIC Insd) (AMT)............................. 5.250 10/01/32 9,045,496 -------------- 11,664,646 -------------- FLORIDA 3.2% 1,000 Alachua Cnty, FL Indl Dev Rev North FL Retirement Vlg................................ 5.875 11/15/36 1,001,100 375 Beacon Lakes, FL Cmnty Dev FL Spl Assmt Ser A......................................... 6.000 05/01/38 354,277 250 Beacon Lakes, FL Cmnty Dev FL Spl Assmt Sub Ser B......................................... 6.200 05/01/38 242,550 460 Escambia Cnty, FL Hlth Auth Rev FL Hlthcare Fac Ln VHA Pgm (AMBAC Insd)................... 5.950 07/01/20 479,049 2,500 Highlands Cnty, FL Hlth Fac Auth Rev Hosp Adventist Hlth Sys Ser C...................... 5.250 11/15/36 2,553,150 1,000 Highlands Cnty, FL Hlth Fac Auth Rev Hosp Adventist Hlth Sys Ser D...................... 5.000 11/15/35 1,001,620 1,000 Lakeland, FL Hosp Sys Rev Lakeland Regl Hlth Sys (Prerefunded @ 11/15/12).................. 5.500 11/15/32 1,096,390 2,100 Miami-Dade Cnty, FL Aviation Miami Intl Arpt (FGIC Insd) (AMT)............................. 5.375 10/01/27 2,166,801 2,500 Miami-Dade Cnty, FL Aviation Miami Intl Arpt (FGIC Insd) (AMT)............................. 5.375 10/01/32 2,564,050 215 North Broward, FL Hosp Dist Rev Impt.......... 6.000 01/15/31 224,183 2,160 North Broward, FL Hosp Dist Rev Impt (Prerefunded @ 1/15/11)....................... 6.000 01/15/31 2,337,833 1,400 Orange Cnty, FL Hlth Fac Auth Rev First Mtg Orlando Lutheran Tower........................ 5.500 07/01/32 1,341,592 750 Seminole Tribe, FL Spl Oblig Rev Ser A (c).... 5.750 10/01/22 785,460 800 Tolomato Cmnty Dev Dist FL Spl Assmt.......... 6.650 05/01/40 801,320 -------------- 16,949,375 -------------- GEORGIA 3.5% 1,000 Atlanta, GA Arpt Rev Ser B (FGIC Insd) (AMT)......................................... 5.625 01/01/30 1,036,710 1,053 Fulton Cnty, GA Lease Rev (Acquired 12/23/94, Cost $1,052,972) (b).......................... 7.250 06/15/10 1,073,012 7,000 Georgia Muni Elec Auth Pwr Rev Ser A (MBIA Insd)......................................... 6.500 01/01/20 8,517,250 3,770 Monroe Cnty, GA Dev Auth Pollutn Ctl Rev Oglethorpe Pwr Corp Scherer Ser A............. 6.800 01/01/12 4,178,517 2,500 Municipal Elec Auth GA Combustion Turbine Proj Ser A (MBIA Insd)............................. 5.250 11/01/21 2,653,150 1,000 Oconee Cnty, GA Indl Dev Auth Rev Oiit Proj (XLCA Insd)................................... 5.250 07/01/25 1,045,990 -------------- 18,504,629 --------------
See Notes to Financial Statements 15 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2007 continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - -------------------------------------------------------------------------------------------- IDAHO 0.2% $ 850 Idaho Hlth Fac Auth Rev Rfdg Vly Vista Care Corp Rfdg..................................... 6.125% 11/15/27 $ 866,244 -------------- ILLINOIS 15.8% 1,000 Bartlett, IL Tax Increment Rev Sr Lien Quarry Redev Proj Rfdg............................... 5.600 01/01/23 1,008,790 3,750 Bolingbrook, IL Cap Apprec Ser B (MBIA Insd)......................................... * 01/01/30 1,143,000 3,150 Chicago, IL O'Hare Intl Arpt Rev Gen Arpt Third Lien Rfdg Ser A (MBIA Insd) (AMT)....... 5.375 01/01/32 3,200,211 10,900 Chicago, IL O'Hare Intl Arpt Rev Gen Arpt Third Lien Ser A (MBIA Insd) (a).............. 5.250 01/01/24 11,566,208 10,000 Chicago, IL O'Hare Intl Arpt Rev Gen Arpt Third Lien Ser A (MBIA Insd) (a).............. 5.250 01/01/25 10,611,200 6,000 Chicago, IL O'Hare Intl Arpt Rev Gen Arpt Third Lien Ser A (MBIA Insd) (a).............. 5.250 01/01/26 6,366,720 615 Chicago, IL Pk Dist Ser C (FGIC Insd)......... 5.500 01/01/19 651,838 1,885 Chicago, IL Pk Dist Ser C (FGIC Insd) (Prerefunded @ 7/01/11)....................... 5.500 01/01/19 2,013,915 5 Chicago, IL Single Family Mtg Rev Ser A (GNMA Collateralized) (AMT)......................... 7.000 09/01/27 5,133 4,500 Cook Cnty, IL Cap Impt Ser A (FGIC Insd)...... 5.000 11/15/23 4,628,790 6,000 Illinois Fin Auth Rev Northwestern Mem Hosp Ser A......................................... 5.500 08/15/43 6,291,420 3,000 Illinois Fin Auth Rev Osf Hlthcare Sys Ser A............................................. 5.750 11/15/37 3,175,830 2,300 Illinois Fin Auth Rev Rfdg Christian Homes Inc Ser A......................................... 5.750 05/15/26 2,230,885 5,500 Illinois Fin Auth Rev Sherman Hlth Sys Ser 2007-A.................................... 5.500 08/01/37 5,522,165 1,250 Metropolitan Pier & Expo Auth IL Dedicated St Tax Rev McCormick Pl Expn Proj Ser A (FGIC Insd)......................................... 5.375 12/15/18 1,303,213 2,000 Metropolitan Pier & Expo Auth IL Dedicated St Tax Rev McCormick Pl Expn Proj Ser A (FGIC Insd)......................................... 5.500 12/15/24 2,083,740 6,000 Metropolitan Pier & Expo Auth IL Dedicated St Tax Rev McCormick Pl Expn Ser A (MBIA Insd)... 5.250 06/15/42 6,233,100 3,000 Pekin, IL Mtg Rev United Auto Workers Inc Proj Ser A (GNMA Collateralized)................... 5.250 05/20/34 3,044,280 5,000 Regional Tran Auth IL Ser B (AMBAC Insd)...... 8.000 06/01/17 6,532,750 5,000 University IL Univ Rev Aux Sys Fac Rfdg Ser A (AMBAC Insd).................................. 5.000 04/01/30 5,125,450 -------------- 82,738,638 -------------- INDIANA 4.8% 1,000 Allen Cnty, IN Juvenile Just Ctr First Mtg (AMBAC Insd).................................. 5.500 01/01/18 1,071,630 3,270 Allen Cnty, IN War Mem Coliseum Ser A (AMBAC Insd) (Prerefunded @ 11/01/11) (e)..... 5.500 11/01/16 3,541,246
16 See Notes to Financial Statements VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2007 continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - -------------------------------------------------------------------------------------------- INDIANA (CONTINUED) $ 1,000 Indiana Hlth & Ed Fac Fin Cmnty Fndtn Northwest IN.................................. 5.500% 03/01/37 $ 999,190 2,000 Indiana Hlth Fac Fin Auth Hosp Rev Columbus Regl Hosp Rfdg (FSA Insd)..................... 7.000 08/15/15 2,280,160 5,000 Indiana Muni Pwr Agy Pwr Supply Sys Rev Ser A (MBIA Insd)................................... 5.000 01/01/42 5,123,450 2,500 Indiana St Dev Fin Auth Rev Exempt Fac Conv Rfdg (AMT).................................... 5.950 08/01/30 2,570,200 10,000 Indiana St Hsg & Cmnty Dev Auth Single Family Mtg Rev Ser D-1 (GNMA Collateralized) (AMT) (a)..................................... 4.625 07/01/38 9,109,965 500 Vigo Cnty, IN Hosp Auth Rev Union Hosp Inc (Acquired 9/13/07, Cost $491,743) (b)......... 5.750 09/01/42 481,775 -------------- 25,177,616 -------------- IOWA 1.4% 1,890 Des Moines, IA Pub Pkg Sys Rev Ser A (FGIC Insd) (e)..................................... 5.750 06/01/17 1,992,665 500 Jefferson Cnty, IA Hosp Rev Jefferson Cnty Hosp Proj Ser C............................... 5.950 08/01/37 494,445 2,500 Tobacco Settlement Auth IA Rev Asset Bkd Ser C......................................... 5.500 06/01/42 2,320,200 2,500 Tobacco Settlement Auth IA Rev Asset Bkd Ser C......................................... 5.625 06/01/46 2,361,350 -------------- 7,168,660 -------------- KANSAS 0.7% 1,250 Labette Cnty, KS Hosp Rev Rfdg & Impt Ser A... 5.750 09/01/29 1,250,813 1,600 Manhattan, KS Hlthcare Fac Rev Meadowlark Hills Retirement Ser A........................ 5.000 05/15/24 1,525,488 800 Manhattan, KS Hlthcare Fac Rev Meadowlark Hills Retirement Ser A........................ 5.000 05/15/36 734,112 375 Manhattan, KS Hlthcare Fac Rev Meadowlark Hills Retirement Ser B........................ 5.125 05/15/37 347,876 -------------- 3,858,289 -------------- KENTUCKY 2.7% 1,475 Kenton Cnty, KY Arpt Brd Rev Cincinnati/Northn KY Intl Arpt Rfdg Ser A (MBIA Insd) (AMT)..... 6.200 03/01/08 1,487,390 300 Kentucky Hsg Corp Hsg Rev Ser F (FNMA Collateralized) (AMT)......................... 5.450 01/01/32 303,300 7,785 Louisville & Jefferson Cntys, KY Metro Govt Hlth Sys Rev Norton Hlthcare Inc (a).......... 5.250 10/01/36 7,792,356 4,500 Louisville & Jefferson Cntys, KY Metro Govt Indl Bldg Rev Sisters of Mercy Cincinnati..... 5.000 10/01/35 4,397,175 -------------- 13,980,221 --------------
See Notes to Financial Statements 17 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2007 continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - -------------------------------------------------------------------------------------------- LOUISIANA 3.4% $ 5,000 Lafayette, LA Util Rev (MBIA Insd)............ 5.250% 11/01/23 $ 5,348,100 60 Louisiana Hsg Fin Agy Mtg Rev Single Family Access Pgm Ser B (GNMA Collateralized) (AMT)................... 8.000 03/01/25 61,183 1,940 Louisiana Hsg Fin Agy Rev Azalea Estates Rfdg Ser A (GNMA Collateralized) (AMT)............. 5.375 10/20/39 1,969,896 3,000 Louisiana St Energy & Pwr Auth Pwr Proj Rev Rfdg (FSA Insd)............................... 5.750 01/01/12 3,239,490 7,000 Louisiana St Gas & Fuels Tax Rev Ser A (FGIC Insd) (a)..................................... 5.000 05/01/41 7,197,645 -------------- 17,816,314 -------------- MARYLAND 3.5% 2,000 Baltimore, MD Convention Ctr Hotel Rev Ser A (XLCA Insd) (a)............................... 5.250 09/01/24 2,141,560 775 Gaithersburg, MD Econ Dev Rev Asbury Maryland Oblig Group Ser A............................. 5.125 01/01/36 751,363 2,900 Maryland St Cmnty Dev Admin Ser H (AMT)....... 5.100 09/01/37 2,897,593 2,050 Maryland St Econ Dev Corp Student Hsg Rev Univ MD College Pk Proj Rfdg (Prerefunded @ 06/01/13)...................... 5.625 06/01/35 2,264,204 2,000 Maryland St Hlth & Higher Ed Fac Auth Rev Medstar Hlth Rfdg............................. 5.375 08/15/24 2,058,800 2,750 Maryland St Hlth & Higher Ed Fac Auth Rev Mercy Med Ctr Ser A (f)....................... 5.500 07/01/42 2,787,235 4,710 Northeast, MD Waste Disp Auth Rfdg (AMBAC Insd) (AMT)................................... 5.500 04/01/16 5,019,682 600 Prince Georges Cnty, MD Spl Oblig Natl Harbor Proj.......................................... 5.200 07/01/34 575,334 -------------- 18,495,771 -------------- MASSACHUSETTS 4.0% 3,955 Massachusetts Bay Trans Auth Gen Trans Sys Rfdg Ser A.................................... 5.500 03/01/12 4,149,032 400 Massachusetts St Dev Fin Agy Linden Ponds Inc Fac Ser A..................................... 5.750 11/15/35 393,424 475 Massachusetts St Dev Fin Agy Linden Ponds Inc Fac Ser A..................................... 5.750 11/15/42 464,484 4,800 Massachusetts St Dev Fin Agy Rev College Pharmacy & Allied Hlth Ser D (AGL Insd)....... 5.000 07/01/35 4,924,128 3,000 Massachusetts St Dev Fin Agy Semass Sys Ser A (MBIA Insd)................................... 5.625 01/01/16 3,232,230 965 Massachusetts St Hlth & Ed Fac Auth Rev Partn Hlthcare Sys Ser C (Prerefunded @ 7/01/11).... 5.750 07/01/32 1,047,382 35 Massachusetts St Hlth & Ed Fac Auth Rev Partn Hlthcare Sys Ser C............................ 5.750 07/01/32 37,290
18 See Notes to Financial Statements VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2007 continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - -------------------------------------------------------------------------------------------- MASSACHUSETTS (CONTINUED) $ 965 Massachusetts St Hlth & Ed Fac Auth Rev Saint Mem Med Ctr Ser A............................. 6.000% 10/01/23 $ 965,386 6,050 Massachusetts St Hlth & Ed Fac Auth Rev Univ MA Mem Issue Ser D............................ 5.000 07/01/33 5,776,116 -------------- 20,989,472 -------------- MICHIGAN 1.3% 3,000 Kent Hosp Fin Auth MI Rev Metro Hosp Proj Ser A......................................... 6.250 07/01/40 3,229,230 3,750 Michigan Tob Settlement Fin Auth Tob Settlement Asset Sr Ser A..................... 6.000 06/01/48 3,736,162 -------------- 6,965,392 -------------- MINNESOTA 2.5% 10 Chaska, MN Elec Rev Ser A..................... 6.100 10/01/30 10,554 990 Chaska, MN Elec Rev Ser A (Prerefunded @ 10/01/10)..................................... 6.100 10/01/30 1,062,597 1,000 Meeker Cnty, MN Gross Rev Hosp Fac Mem Hosp Proj (f)...................................... 5.750 11/01/27 1,013,660 175 North Oaks, MN Sr Hsg Rev Presbyterian Homes North Oaks.................................... 6.000 10/01/27 176,878 550 North Oaks, MN Sr Hsg Rev Presbyterian Homes North Oaks.................................... 6.000 10/01/33 552,821 175 North Oaks, MN Sr Hsg Rev Presbyterian Homes North Oaks.................................... 6.125 10/01/39 175,892 1,800 Saint Paul, MN Hsg & Redev Auth Hlthcare Fac Rev Hlthpartners Oblig Grp Proj............... 5.250 05/15/36 1,777,662 2,200 Saint Paul, MN Hsg & Redev Auth Hosp Rev Hlth East Proj..................................... 6.000 11/15/30 2,288,748 2,000 Saint Paul, MN Hsg & Redev Auth Hosp Rev Hlth East Proj..................................... 6.000 11/15/35 2,076,700 3,875 Saint Paul, MN Port Auth Lease Rev Office Bldg at Cedar Str (e).............................. 5.250 12/01/19 4,161,169 -------------- 13,296,681 -------------- MISSOURI 4.8% 1,800 Cape Girardeau Cnty, MO Indl Dev Auth Hlthcare Fac Rev Southeast MO Hosp Assoc (Prerefunded @ 6/01/12)...................................... 5.500 06/01/22 1,942,866 350 Cape Girardeau Cnty, MO Indl Southeast MO Hosp Assoc......................................... 5.500 06/01/22 357,431 1,000 Cass Cnty, MO Hosp Rev (f).................... 5.625 05/01/38 1,007,340 1,375 Missouri St Hlth & Ed Fac Auth Rev Sr Living Fac Lutheran Ser A............................ 5.375 02/01/35 1,382,246 3,000 Sikeston, MO Elec Rev Rfdg (MBIA Insd)........ 6.200 06/01/10 3,116,340 5,500 Springfield, MO Pub Bldg Corp Leasehold Rev Springfield Branson Arpt Ser B (AMBAC Insd) (AMT) (a)..................................... 4.550 07/01/29 5,134,830
See Notes to Financial Statements 19 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2007 continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - -------------------------------------------------------------------------------------------- MISSOURI (CONTINUED) $ 6,650 Springfield, MO Pub Bldg Corp Leasehold Rev Springfield Branson Arpt Ser B (AMBAC Insd) (AMT) (a)..................................... 4.600% 07/01/36 $ 6,208,476 4,100 Springfield, MO Pub Util Rev (FGIC Insd)...... 4.500 08/01/36 3,986,922 615 St Louis Cnty, MO Indl Dev Auth Sr Living Fac Rev St Andrews Res For Sr Ser A............... 6.375 12/01/30 620,873 1,450 St Louis Cnty, MO Indl Dev Auth Sr Living Fac Rev St Andrews Res For Sr Ser A............... 6.375 12/01/41 1,458,468 -------------- 25,215,792 -------------- NEBRASKA 2.8% 5,000 Omaha, NE Pub Pwr Dist Elec Rev Sys Ser A..... 5.000 02/01/39 5,108,600 9,175 Omaha, NE Pub Pwr Dist Elec Rev Sys Ser AA (FGIC Insd) (a)............................... 4.500 02/01/34 9,305,816 -------------- 14,414,416 -------------- NEVADA 5.5% 15,000 Clark Cnty, NV Arpt Rev Sub Lien Ser A-2 (FGIC Insd)......................................... 5.000 07/01/36 15,335,850 2,800 Clark Cnty, NV Indl Dev Rev Southwest Gas Corp Proj Ser A (FGIC Insd) (AMT).................. 4.750 09/01/36 2,668,876 6,000 Clark Cnty, NV Indl Dev Rev Southwest Gas Corp Proj Ser A (AMBAC Insd) (AMT)................. 5.250 07/01/34 6,124,620 4,750 Reno, NV Hosp Rev Renown Regl Med Ctr Proj Ser A (a)......................................... 5.250 06/01/37 4,790,817 -------------- 28,920,163 -------------- NEW HAMPSHIRE 0.6% 1,155 New Hampshire Hlth & Ed Fac Auth Rev Derryfield Sch................................ 7.000 07/01/30 1,223,064 845 New Hampshire Hlth & Ed Fac Univ Sys of NH (AMBAC Insd).................................. 5.500 07/01/15 907,361 1,000 New Hampshire St Bus Fin Auth Wtr Fac Rev Pennichuck Wtrwks Inc (AMBAC Insd) (AMT)...... 6.300 05/01/22 1,021,800 -------------- 3,152,225 -------------- NEW JERSEY 16.6% 375 Burlington Cnty, NJ Bridge Commn Econ Dev Rev The Evergreens Proj........................... 5.625 01/01/38 371,471 2,700 New Jersey Econ Dev Auth Rev Cig Tax.......... 5.750 06/15/29 2,830,626 2,000 New Jersey Econ Dev Auth Rev Cig Tax.......... 5.750 06/15/34 2,103,680 30,000 New Jersey Econ Dev Auth St Contract Econ Recovery (MBIA Insd).......................... 5.900 03/15/21 35,058,300 8,000 New Jersey Econ Dev Auth Wtr Fac Rev NJ Amer Wtr Co Inc Proj Ser A (FGIC Insd) (AMT)....... 6.875 11/01/34 8,101,360 2,400 New Jersey Hlthcare Fac Fin Auth Rev Holy Name Hosp.......................................... 5.000 07/01/36 2,282,424
20 See Notes to Financial Statements VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2007 continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - -------------------------------------------------------------------------------------------- NEW JERSEY (CONTINUED) $ 2,000 Tobacco Settlement Fin Corp NJ Ser 1A......... 4.750% 06/01/34 $ 1,668,640 40,000 Tobacco Settlement Fin Corp NJ Ser 1A (a)..... 5.000 06/01/41 34,320,495 -------------- 86,736,996 -------------- NEW MEXICO 0.6% 2,020 University NM Univ Rev Sub Lien Rfdg Ser A (e)..................................... 5.250 06/01/20 2,140,776 1,125 University NM Univ Rev Sub Lien Rfdg Ser A.... 5.250 06/01/21 1,192,264 -------------- 3,333,040 -------------- NEW YORK 12.8% 7,500 Liberty, NY Dev Corp Rev Goldman Sachs Headquarters.................................. 5.250 10/01/35 7,985,775 11,000 New York City Hsg Dev Corp Multi-Family Rent Hsg Rev Progress of Peoples Dev Ser B (FNMA Collateralized) (AMT)......................... 4.950 05/15/36 10,761,190 1,255 New York City Indl Dev Civic YMCA Gtr NY Proj.......................................... 5.800 08/01/16 1,292,299 2,525 New York St Dorm Auth Lease Rev Muni Hlth Fac Impt Pgm Ser A (FSA Insd)..................... 5.500 05/15/25 2,578,530 1,625 New York St Dorm Auth Lease Rev St Univ Dorm Fac Ser A (Prerefunded @ 7/01/10)............. 6.000 07/01/14 1,747,249 3,100 New York St Dorm Auth Rev City Univ Sys Cons Ser A......................................... 5.625 07/01/16 3,435,296 2,600 New York St Dorm Auth Rev Cons City Univ Sys Second Gen Ser A.............................. 5.750 07/01/13 2,803,086 2,040 New York St Dorm Auth Rev Secd Hosp Gen Hosp Rfdg.......................................... 5.750 02/15/18 2,207,912 775 New York St Dorm Auth Rev Ser B............... 7.500 05/15/11 850,500 650 New York St Dorm Auth Rev Ser B (Prerefunded @ 5/15/10)...................................... 7.500 05/15/11 699,517 320 New York St Dorm Auth Rev St Supported Debt Mental Hlth Ser B (e)......................... 5.750 08/15/11 326,922 5,000 New York St Dorm Auth Rev St Univ Ed Fac Ser A......................................... 5.500 05/15/08 5,054,050 1,500 New York St Dorm Auth Rev Upstate Cmnty Colleges Ser B................................ 5.250 07/01/20 1,592,010 1,000 New York St Dorm Auth Rev Upstate Cmnty Colleges Ser B................................ 5.250 07/01/21 1,058,950 985 New York St Mtg Agy Rev Homeowner Mtg Ser 82 (AMT).................................. 5.650 04/01/30 1,022,509 3,570 New York St Mtg Agy Rev Ser 101 (AMT)......... 5.400 04/01/32 3,608,056 15,000 Port Auth NY & NJ Cons Ser 144 (a)............ 5.000 10/01/35 15,495,226 4,000 Port Auth NY & NJ Spl Oblig Rev Spl Proj JFK Intl Arpt Terminal 6 (MBIA Insd) (AMT)........ 5.750 12/01/22 4,085,520 575 Seneca Nation Indians Cap Impt Auth NY Spl Oblig Ser A (c)............................... 5.000 12/01/23 548,435 -------------- 67,153,032 --------------
See Notes to Financial Statements 21 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2007 continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - -------------------------------------------------------------------------------------------- NORTH CAROLINA 8.6% $ 1,500 North Carolina Eastn Muni Pwr Agy Pwr Sys Rev Ser D......................................... 6.700% 01/01/19 $ 1,587,765 10,880 North Carolina Med Care Commn Hlth Sys Rev Mission Hlth Combined Group (a)............... 5.000 10/01/36 10,968,454 1,000 North Carolina Med Care Commn Retirement Fac Rev First Mtg Southminster Proj Ser A (f)..... 5.750 10/01/37 990,060 22,000 North Carolina Muni Pwr Agy No 1 Catawba Elec Rev Rfdg (MBIA Insd).......................... 6.000 01/01/12 24,055,900 7,000 North Carolina Muni Pwr Agy Ser A (MBIA Insd)................................... 5.250 01/01/19 7,432,950 -------------- 45,035,129 -------------- NORTH DAKOTA 0.2% 630 North Dakota St Hsg Fin Agy Rev Hsg Fin Pgm Home Mtg Fin Ser B (MBIA Insd) (AMT).......... 5.500 07/01/29 639,091 275 North Dakota St Hsg Fin Agy Ser C (AMT)....... 5.550 07/01/29 277,018 -------------- 916,109 -------------- OHIO 1.5% 1,000 Cleveland, OH Muni Sch Dist (FSA Insd)........ 5.250 12/01/24 1,072,880 400 Cuyahoga Cnty, OH Hlthcare & Indpt Living Fac Rev Eliza Jennings Sr Care Ser A.............. 5.750 05/15/27 392,176 1,500 Cuyahoga Cnty, OH Hosp Fac Rev Canton Inc Proj...................................... 7.500 01/01/30 1,624,890 2,450 Lorain Cnty, OH Hosp Rev Catholic Hlthcare Impt & Rfdg Ser A............................. 5.250 10/01/33 2,501,670 2,000 Lorain Cnty, OH Hosp Rev Catholic Hlthcare.... 5.375 10/01/30 2,059,000 -------------- 7,650,616 -------------- OKLAHOMA 3.4% 3,410 Jenks, OK Aquarium Auth Rev Rfdg (MBIA Insd) (e)............................... 5.250 07/01/24 3,630,695 1,475 Jenks, OK Aquarium Auth Rev Rfdg (MBIA Insd)................................... 5.250 07/01/33 1,554,207 3,970 McAlester, OK Pub Wk Auth Util Cap Apprec (FSA Insd)......................................... * 02/01/34 1,134,229 2,250 Oklahoma City, OK Pub Ppty Auth Hotel Tax Rev (FGIC Insd)................................... 5.250 10/01/29 2,365,853 1,065 Oklahoma Dev Fin Auth Lease Rev OK Council Law Enforcement (MBIA Insd) (e)................... 5.500 06/01/17 1,142,777 1,120 Oklahoma Dev Fin Auth Lease Rev OK Council Law Enforcement (MBIA Insd) (e)................... 5.500 06/01/18 1,203,014 1,185 Oklahoma Dev Fin Auth Lease Rev OK Council Law Enforcement (MBIA Insd) (e)................... 5.500 06/01/19 1,272,832
22 See Notes to Financial Statements VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2007 continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - -------------------------------------------------------------------------------------------- OKLAHOMA (CONTINUED) $ 2,250 Tulsa Cnty, OK Pub Fac Auth Cap Impt Rev (AMBAC Insd) (Prerefunded @ 11/01/09)......... 6.250% 11/01/22 $ 2,413,913 3,140 Tulsa, OK Indl Auth Hosp Rev Hillcrest Med Cent Proj Rfdg (Connie Lee Insd) (d) (e)...... 6.250 06/01/08 3,189,581 -------------- 17,907,101 -------------- OREGON 2.0% 5,000 Oregon Hlth Sciences Univ Insd Ser A (MBIA Insd)................................... 5.250 07/01/22 5,298,450 5,000 Oregon St Dept Admin Rfdg Ser C (MBIA Insd)... 5.250 11/01/18 5,285,650 -------------- 10,584,100 -------------- PENNSYLVANIA 6.8% 875 Montgomery Cnty, PA Indl Dev Auth Rev Mtg Whitemarsh Cont Care.......................... 6.250 02/01/35 894,302 16,755 Pennsylvania St Pub Sch Bldg Auth Lease Rev Sch Dist Ser B (a)............................ 4.500 06/01/32 16,382,265 10,165 Philadelphia, PA Hosp & Higher Ed Fac Auth Hosp Rev Childrens Hosp Ser A (a)............. 4.500 07/01/37 9,795,108 3,000 Susquehanna Area Regl Arpt Auth PA Arpt Sys Rev Ser A (AMBAC Insd) (AMT).................. 5.375 01/01/21 3,120,870 5,415 Susquehanna Area Regl Arpt Auth PA Ser A (AMBAC Insd) (AMT) (e)........................ 5.375 01/01/22 5,622,828 -------------- 35,815,373 -------------- SOUTH CAROLINA 5.5% 2,500 Charleston Ed Excellence Fin Corp SC Rev Charleston Cnty Sch Dist (a).................. 5.250 12/01/25 2,624,062 7,500 Charleston Ed Excellence Fin Corp SC Rev Charleston Cnty Sch Dist (a).................. 5.250 12/01/26 7,872,188 5,000 Easley, SC Util Rev Impt & Comb Rfdg (FSA Insd).................................... 5.000 12/01/34 5,162,500 2,000 Laurens Cnty, SC Sch Dist No 55 Installment Pur Rev....................................... 5.250 12/01/30 2,026,180 5,000 South Carolina Jobs Econ Dev Auth Indl Rev Elec & Gas Co Proj Ser A (AMBAC Insd)......... 5.200 11/01/27 5,258,350 3,750 South Carolina Jobs Econ Dev Auth Indl Rev Elec & Gas Co Proj Ser B (AMBAC Insd) (AMT)... 5.450 11/01/32 3,866,137 725 South Carolina Jobs Econ Dev Auth Rev Woodlands At Furman Proj Ser A................ 6.000 11/15/27 729,321 1,650 South Carolina Jobs Econ Rfdg First Mtg Lutheran Homes................................ 5.375 05/01/21 1,581,987 -------------- 29,120,725 --------------
See Notes to Financial Statements 23 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2007 continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - -------------------------------------------------------------------------------------------- SOUTH DAKOTA 2.2% $ 1,375 Deadwood, SD Ctf Partn (ACA Insd)............. 6.375% 11/01/20 $ 1,443,516 8,060 South Dakota Hsg Dev Auth Homeownership Mtg Ser E (a)..................................... 4.625 05/01/36 7,459,611 2,500 South Dakota St Hlth & Ed Fac Auth Rev Sioux Vly Hosp & Hlth Sys A......................... 5.250 11/01/34 2,556,525 -------------- 11,459,652 -------------- TENNESSEE 2.5% 1,750 Chattanooga, TN Hlth Ed & Hsg Fac Brd Rev CDFI Phase I LLC Proj Rfdg Ser A................... 5.125 10/01/35 1,639,085 2,000 Elizabethton, TN Hlth & Ed Fac Brd Rev Impt Hosp First Mtg Rfdg Ser B..................... 8.000 07/01/33 2,297,600 1,500 Elizabethton, TN Hlth & Ed Fac Brd Rev Impt Hosp Rfdg Ser B (MBIA Insd)................... 7.750 07/01/29 1,761,180 1,000 Johnson City, TN Hlth & Ed Fac Brd Hosp Rev First Mtg Mtn St Hlth Rfdg Ser A (MBIA Insd)......................................... 7.500 07/01/25 1,178,640 5,000 Tennessee Energy Acquisition Corp Gas Rev Ser A......................................... 5.250 09/01/21 5,115,850 1,000 Tennessee Energy Acquisition Corp Gas Rev Ser A......................................... 5.250 09/01/24 1,013,910 -------------- 13,006,265 -------------- TEXAS 16.2% 2,000 Alliance Arpt Auth Inc TX Spl Fac Rev FedEx Corp Proj Rfdg (AMT).......................... 4.850 04/01/21 1,974,880 2,350 Austin, TX Ctf Oblig (MBIA Insd) (e).......... 5.375 09/01/20 2,513,513 2,545 Dallas Cnty, TX Cmnty College Fin Sys (AMBAC Insd) (Prerefunded @ 2/15/10) (e)............. 5.375 02/15/17 2,653,213 5,500 Dallas-Fort Worth, TX Intl Arpt Rev Jt Impt & Rfdg Ser A (FGIC Insd) (AMT).................. 5.500 11/01/31 5,692,995 8,000 Dallas-Fort Worth, TX Intl Arpt Rev Jt Ser A (FSA Insd) (AMT).............................. 5.500 11/01/21 8,501,200 4,000 Dallas-Fort Worth, TX Intl Arpt Rev Jt Ser A (FGIC Insd) (AMT)............................. 5.750 11/01/30 4,122,800 2,000 Harris Cnty, TX Hlth Fac Dev Corp Hosp Rev Mem Hermann Hlthcare Ser A (Prerefunded @ 6/01/11)....................... 6.375 06/01/29 2,207,160 2,000 Houston, TX Arpt Sys Rev Sub Lien (FSA Insd)......................................... 5.500 07/01/20 2,145,360 10,000 Houston, TX Arpt Sys Rev Sub Lien Ser A (FSA Insd) (AMT)................................... 5.125 07/01/32 10,050,800 3,000 Houston, TX Arpt Sys Rev Sub Lien Ser A (FSA Insd) (AMT)................................... 5.625 07/01/30 3,097,800 12,000 Houston, TX Util Sys Rev First Lien Rfdg Ser A (FSA Insd).................................... 5.250 05/15/21 12,826,920 2,185 Lower CO Riv Auth TX Transmission Contract Rev LCRA Svc Corp Proj Rfdg (FGIC Insd)........... 5.000 05/15/24 2,256,406 2,185 Lower CO Riv Auth TX Transmission Contract Rev LCRA Svc Corp Proj Rfdg (FGIC Insd)........... 5.000 05/15/25 2,256,187
24 See Notes to Financial Statements VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2007 continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - -------------------------------------------------------------------------------------------- TEXAS (CONTINUED) $ 4,000 Lower CO Riv Auth TX Transmission Contract Rev LCRA Svc Corp Proj Rfdg (FGIC Insd)........... 5.000% 05/15/33 $ 4,060,880 625 Lufkin, TX Hlth Fac Dev Corp Memorial Hlth Sys East TX....................................... 5.500 02/15/37 629,687 1,000 Matagorda Cnty, TX Na Dist No 1 Rev Coll Centerpoint Energy Proj Rfdg.................. 5.600 03/01/27 1,039,060 3,000 Metropolitan Hlth Fac Dev Corp TX Wilson N Jones Mem Hosp Proj........................... 7.250 01/01/31 3,071,940 10,000 North Cent, TX Hlth Fac Dev Hosp Childrens Med Ctr Dallas (AMBAC Insd)....................... 5.250 08/15/32 10,334,000 1,000 Tarrant Cnty, TX Cultural Ed Buckingham Sr Living Cmnty Inc.............................. 5.750 11/15/37 968,740 1,000 Tarrant Cnty, TX Cultural Ed Fac Fin Corp Retirement Fac Buckingham Sr Living Cmnty Inc..................................... 5.625 11/15/27 971,900 2,000 Texas St Dept Hsg & Cmnty Affairs Mtg Ser B (GNMA Collateralized) (AMT)................... 5.300 09/01/39 2,018,180 1,650 Tyler, TX Hlth Fac Dev Corp Hosp Rfdg & Impt East Tex Med Ctr Ser A (f).................... 5.375 11/01/37 1,633,022 -------------- 85,026,643 -------------- UTAH 0.6% 2,380 Mountain Regl Wtr Spl Svc Dist Rfdg (MBIA Insd)................................... 5.000 12/15/33 2,444,236 700 Utah St Charter Sch Fin Auth Channing Hall Ser A (c)......................................... 6.000 07/15/37 701,456 -------------- 3,145,692 -------------- VIRGINIA 0.4% 750 Peninsula Town Ctr Cmnty Dev Auth VA Spl Oblig..................................... 6.350 09/01/28 774,555 1,500 White Oak Vlg Shops VA Cmnty Dev Auth Spl Assmt Rev..................................... 5.300 03/01/17 1,493,880 -------------- 2,268,435 -------------- WASHINGTON 8.6% 9,850 Bellevue, WA Convention Ctr Auth Spl Oblig Rev Comp Int Rfdg (MBIA Insd)..................... * 02/01/25 4,412,406 7,500 Chelan Cnty, WA Pub Util Dist No 001 Cons Rev Chelan Hydro Ser A (MBIA Insd) (AMT).......... 5.600 01/01/36 7,901,100 5,000 Energy Northwest WA Elec Rev Columbia Generating Rfdg Ser A (FSA Insd).............. 5.500 07/01/16 5,349,400 2,500 Energy Northwest WA Elec Rev Proj No 3 Rfdg Ser A (FSA Insd).............................. 5.500 07/01/18 2,670,700 5,000 Energy Northwest WA Elec Rev Proj No 3 Rfdg Ser B (FSA Insd).............................. 6.000 07/01/16 5,495,200 2,000 Port Seattle, WA Rev Ser B (MBIA Insd) (AMT)......................................... 5.625 02/01/24 2,071,300 2,120 Seattle, WA Muni Lt & Pwr Rev................. 5.625 12/01/17 2,237,808
See Notes to Financial Statements 25 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2007 continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - -------------------------------------------------------------------------------------------- WASHINGTON (CONTINUED) $ 1,250 Skagit Cnty, WA Pub Hosp Dist No 001 Rev Skagit Vly Hosp............................... 5.750% 12/01/28 $ 1,298,888 3,000 Spokane, WA Pub Fac Dist Hotel Motel & Sales Use Tax (MBIA Insd)........................... 5.250 09/01/33 3,127,860 4,750 Tacoma, WA Elec Sys Rev Rfdg Ser A (FSA Insd).................................... 5.750 01/01/14 5,101,120 1,500 Tacoma, WA Elec Sys Rev Rfdg Ser B (FSA Insd).................................... 5.500 01/01/12 1,611,390 5,125 Washington St Pub Pwr Supply Sys Nuclear Proj No 3 Rev Rfdg Ser C (MBIA Insd) (e)........... * 07/01/14 3,940,869 -------------- 45,218,041 -------------- WEST VIRGINIA 1.8% 8,000 Harrison Cnty, WV Cmnty Solid Waste Disp Rev West Penn Pwr Co Proj Ser A (MBIA Insd) (AMT)............................. 6.875 04/15/22 8,000,000 500 Ohio Cnty, WV Cnty Commn Tax Fort Henry Centre Fin Dist Ser A................................ 5.850 06/01/34 496,970 1,000 Pleasants Cnty, WV Pollutn Ctl Rfdg Cnty Commn Allegheny Ser F............................... 5.250 10/15/37 1,004,590 -------------- 9,501,560 -------------- WISCONSIN 1.7% 1,500 Southeast WI Professional Baseball Pk Dist Sales Tax Rev Rfdg Ser A (MBIA Insd).......... 5.500 12/15/20 1,695,915 4,000 Wisconsin Hsg & Econ Dev Auth Home Ownership Rev Ser A (a)................................. 4.800 03/01/38 3,807,860 3,000 Wisconsin St Hlth & Ed Fac Auth Rev Wheaton Franciscan Svc Rfdg (Prerefunded @ 2/15/12)... 5.750 08/15/30 3,282,900 -------------- 8,786,675 -------------- WYOMING 0.2% 1,000 University WY Univ Rev Fac Impt (FSA Insd).... 5.500 06/01/18 1,060,370 -------------- PUERTO RICO 2.3% 10,000 Puerto Rico Comwlth Hwy & Trans Auth Hwy Rev Rfdg Ser Y (FSA Insd) (g)..................... 6.250 07/01/21 12,178,900 --------------
26 See Notes to Financial Statements VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2007 continued
PAR AMOUNT (000) DESCRIPTION VALUE - -------------------------------------------------------------------------------------------- TOTAL INVESTMENTS 191.9% (Cost $986,269,676)...................................................... $1,006,988,749 LIABILITY FOR FLOATING RATE NOTE OBLIGATIONS RELATED TO SECURITIES HELD (27.7%) (Cost ($145,423,000)) (145,423) Notes with interest rates ranging from 3.47% to 3.59% at October 31, 2007 and collateral with contractual maturities ranging from 2024 to 2041 (See note 1) (h)................................... (145,423,000) -------------- TOTAL NET INVESTMENTS 164.2% (Cost $840,846,676)...................................................... 861,565,749 OTHER ASSETS IN EXCESS OF LIABILITIES 0.7%................................ 3,784,643 PREFERRED SHARES (INCLUDING ACCRUED DISTRIBUTIONS) (64.9%)................ (340,488,070) -------------- NET ASSETS APPLICABLE TO COMMON SHARES 100.0%............................. $ 524,862,322 ==============
Percentages are calculated as a percentage of net assets applicable to common shares. * Zero coupon bond (a) Underlying security related to Inverse Floaters entered into by the Trust. See Note 1. (b) 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 0.3% of net assets applicable to common shares. (c) 144A-Private Placement security which is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. This security may only be resold in transactions exempt from registration which are normally those transactions with qualified institutional buyers. (d) Escrowed to Maturity (e) The Trust owns 100% of the outstanding bond issuance. (f) Security purchased on a when-issued or delayed delivery basis. (g) All or a portion of this security has been physically segregated in connection with open futures contracts. (h) Floating rate notes. The interest rates shown reflect the rates in effect at October 31, 2007. ACA--American Capital Access AGL--Assured Guaranty Ltd. AMBAC--AMBAC Indemnity Corp. AMT--Alternative Minimum Tax Connie Lee--Connie Lee Insurance Co. FGIC--Financial Guaranty Insurance Co. FHA--Federal Housing Administration See Notes to Financial Statements 27 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2007 continued FNMA--Federal National Mortgage Association FSA--Financial Security Assurance Inc. GNMA--Government National Mortgage Association MBIA--Municipal Bond Investors Assurance Corp. Radian--Radian Asset Assurance XLCA--XL Capital Assurance Inc. FUTURES CONTRACTS OUTSTANDING AS OF OCTOBER 31, 2007:
UNREALIZED APPRECIATION/ CONTRACTS DEPRECIATION SHORT CONTRACTS: U.S. Treasury Bond Futures, December 2007 (Current Notional Value of $112,594 per contract)........................... $ 890 $(327,885) =========== =========
28 See Notes to Financial Statements VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST FINANCIAL STATEMENTS Statements of Assets and Liabilities October 31, 2007 ASSETS: Total Investments (Cost $986,269,676)....................... $1,006,988,749 Receivables: Interest.................................................. 14,269,418 Investments Sold.......................................... 2,407,647 Variation Margin on Futures............................... 890,000 Other....................................................... 10,726 -------------- Total Assets............................................ 1,024,566,540 -------------- LIABILITIES: Payables: Floating Rate Note Obligations............................ 145,423,000 Investments Purchased..................................... 8,146,752 Custodian Bank............................................ 3,866,933 Investment Advisory Fee................................... 331,819 Trust Shares Repurchased.................................. 280,884 Income Distributions--Common Shares....................... 89,582 Other Affiliates.......................................... 42,509 Trustees' Deferred Compensation and Retirement Plans........ 863,642 Accrued Expenses............................................ 171,027 -------------- Total Liabilities....................................... 159,216,148 Preferred Shares (including accrued distributions).......... 340,488,070 -------------- NET ASSETS APPLICABLE TO COMMON SHARES...................... $ 524,862,322 ============== NET ASSET VALUE PER COMMON SHARE ($524,862,322 divided by 33,957,237 shares outstanding)............................ $ 15.46 ============== NET ASSETS CONSIST OF: Common Shares ($0.01 par value with an unlimited number of shares authorized, 33,957,237 shares issued and outstanding).............................................. $ 339,572 Paid in Surplus............................................. 505,055,199 Net Unrealized Appreciation................................. 20,391,188 Accumulated Undistributed Net Investment Income............. 1,843,967 Accumulated Net Realized Loss............................... (2,767,604) -------------- NET ASSETS APPLICABLE TO COMMON SHARES...................... $ 524,862,322 ============== PREFERRED SHARES ($0.01 par value, authorized 100,000,000 shares, 13,600 issued with liquidation preference of $25,000 per share)........................................ $ 340,000,000 ============== NET ASSETS INCLUDING PREFERRED SHARES....................... $ 864,862,322 ==============
See Notes to Financial Statements 29 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST FINANCIAL STATEMENTS continued Statement of Operations For the Year Ended October 31, 2007 INVESTMENT INCOME: Interest.................................................... $ 51,219,534 ------------ EXPENSES: Interest and Residual Trust Expenses........................ 5,508,448 Investment Advisory Fee..................................... 4,890,393 Preferred Share Maintenance................................. 900,218 Accounting and Administrative Expenses...................... 153,146 Professional Fees........................................... 145,571 Trustees' Fees and Related Expenses......................... 84,788 Reports to Shareholders..................................... 78,203 Custody..................................................... 42,758 Transfer Agent Fees......................................... 37,900 Registration Fees........................................... 31,551 Other....................................................... 92,020 ------------ Total Expenses.......................................... 11,964,996 Investment Advisory Fee Reduction....................... 814,532 ------------ Net Expenses.............................................. 11,150,464 ------------ NET INVESTMENT INCOME....................................... $ 40,069,070 ============ REALIZED AND UNREALIZED GAIN/LOSS: Realized Gain/Loss: Investments............................................... $ 1,153,673 Futures................................................... (2,337,599) Swap Contracts............................................ (1,473,278) ------------ Net Realized Loss........................................... (2,657,204) ------------ Unrealized Appreciation/Depreciation: Beginning of the Period................................... 57,935,347 ------------ End of the Period: Investments............................................. 20,719,073 Futures................................................. (327,885) ------------ 20,391,188 ------------ Net Unrealized Depreciation During the Period............... (37,544,159) ------------ NET REALIZED AND UNREALIZED LOSS............................ $(40,201,363) ============ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS..................... $(12,656,912) ============ NET DECREASE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM OPERATIONS................................................ $(12,789,205) ============
30 See Notes to Financial Statements VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST FINANCIAL STATEMENTS continued Statements of Changes in Net Assets
FOR THE FOR THE YEAR ENDED YEAR ENDED OCTOBER 31, 2007 OCTOBER 31, 2006 ------------------------------------ FROM INVESTMENT ACTIVITIES: Operations: Net Investment Income................................... $ 40,069,070 $ 32,814,011 Net Realized Gain/Loss.................................. (2,657,204) 2,557,650 Net Unrealized Appreciation/Depreciation During the Period................................................ (37,544,159) 11,137,467 Distributions to Preferred Shareholders: Net Investment Income................................. (12,656,912) (9,290,320) Net Realized Gain..................................... -0- (1,286,223) ------------ ------------ Change in Net Assets Applicable to Common Shares from Operations............................................ (12,789,205) 35,932,585 Distributions to Common Shareholders: Net Investment Income................................. (26,719,347) (23,610,637) Net Realized Gain..................................... -0- (5,326,749) ------------ ------------ NET CHANGE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM INVESTMENT ACTIVITIES............................ (39,508,552) 6,995,199 FROM CAPITAL TRANSACTIONS: Proceeds from Common Shares Acquired Through Merger..... -0- 306,870,227 Repurchase of Shares.................................... (3,167,636) -0- ------------ ------------ TOTAL INCREASE/DECREASE IN NET ASSETS APPLICABLE TO COMMON SHARES......................................... (42,676,188) 313,865,426 NET ASSETS APPLICABLE TO COMMON SHARES: Beginning of the Period................................. 567,538,510 253,673,084 ------------ ------------ End of the Period (Including accumulated undistributed net investment income of $1,843,967 and $1,095,344, respectively)......................................... $524,862,322 $567,538,510 ============ ============
See Notes to Financial Statements 31 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST FINANCIAL STATEMENTS continued Statement of Cash Flows For the Year Ended October 31, 2007 CHANGE IN NET ASSETS FROM OPERATIONS (INCLUDING PREFERRED SHARE DISTRIBUTIONS)...................................... $ (12,789,205) --------------- Adjustments to Reconcile the Change in Net Assets from Operations to Net Cash Used for Operating Activities: Purchases of Investments.................................. (298,091,398) Proceeds from Sales of Investments........................ 230,393,490 Net Sales of Short-Term Investments....................... 6,200,000 Amortization of Premium................................... 1,626,900 Accretion of Discount..................................... (965,024) Net Realized Gain on Investments.......................... (1,153,673) Net Change in Unrealized Depreciation on Investments...... 39,284,982 Increase in Swap Contracts................................ (1,087,416) Increase in Variation Margin on Futures................... (1,315,156) Decrease in Interest Receivables and Other Assets......... 167,837 Decrease in Receivable for Investments Sold............... 20,715,549 Decrease in Accrued Expenses and Other Payables........... (26,030) Decrease in Investments Purchased Payable................. (35,166,851) --------------- Total Adjustments....................................... (39,416,790) --------------- NET CASH USED FOR OPERATING ACTIVITIES...................... (52,205,995) --------------- CASH FLOWS FROM FINANCING ACTIVITIES Repurchased Shares........................................ (2,886,752) Dividends Paid............................................ (26,650,281) Proceeds from and Repayments to Floating Rate Note Obligations............................................. 77,818,000 Change in Custodian Bank Payable.......................... 3,866,933 --------------- NET CASH PROVIDED BY FINANCING ACTIVITIES................... 52,147,900 --------------- Net Decrease in Cash........................................ (58,095) Cash at the Beginning of the Period......................... 58,095 --------------- CASH AT THE END OF THE PERIOD............................... $ 0 =============== SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash Paid During the Year for Interest.................... $ 5,508,448 ===============
32 See Notes to Financial Statements VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST FINANCIAL HIGHLIGHTS THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE TRUST OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
YEAR ENDED OCTOBER 31, ----------------------------------------------- 2007 2006 2005 2004 2003 ----------------------------------------------- NET ASSET VALUE, BEGINNING OF THE PERIOD.... $ 16.61 $ 16.52 $ 16.89 $ 17.02 $ 17.48 ------- ------- ------- ------- ------- Net Investment Income..................... 1.17(a) 1.11(a) 1.12 1.13 1.19 Net Realized and Unrealized Gain/Loss..... (1.17) 0.49 (0.33) 0.23 0.09 Common Share Equivalent of Distributions Paid to Preferred Shareholders: Net Investment Income................... (0.37) (0.31) (0.22) (0.10) (0.08) Net Realized Gain....................... -0- (0.04) -0- (0.02) (0.04) ------- ------- ------- ------- ------- Total from Investment Operations............ (0.37) 1.25 0.57 1.24 1.16 Distributions Paid to Common Shareholders: Net Investment Income................... (0.78) (0.81) (0.94) (1.08) (1.16) Net Realized Gain....................... -0- (0.35) -0- (0.29) (0.46) ------- ------- ------- ------- ------- NET ASSET VALUE, END OF THE PERIOD.......... $ 15.46 $ 16.61 $ 16.52 $ 16.89 $ 17.02 ======= ======= ======= ======= ======= Common Share Market Price at End of the Period.................................... $ 14.30 $ 14.70 $ 14.35 $ 15.20 $ 16.65 Total Return (b)............................ 2.40% 10.76% 0.55% -0.60% 14.53% Net Assets Applicable to Common Shares at End of the Period (In millions)........... $ 524.9 $ 567.5 $ 253.7 $ 259.4 $ 261.3 Ratio of Expenses to Average Net Assets Applicable to Common Shares (c)........... 2.03% 1.36% 1.18% 1.30% 1.28% Ratio of Net Investment Income to Average Net Assets Applicable to Common Shares (c)....................................... 7.30% 6.86% 6.67% 6.74% 6.90% Portfolio Turnover.......................... 23% 20% 32% 28% 36% * If certain expenses had not been voluntarily assumed by Van Kampen, total return would have been lower and the ratios would have been as follows: Ratio of Expenses to Average Net Assets Applicable to Common Shares............ 2.18% N/A N/A N/A N/A Ratio of Net Investment Income to Average Net Assets Applicable to Common Shares................................. 7.15% N/A N/A N/A N/A SUPPLEMENTAL RATIOS: Ratio of Expenses (Excluding Interest and Residual Trust Expenses) to Average Net Assets Applicable to Common Shares (c).... 1.03% 1.25% 1.18% 1.30% 1.28% Ratio of Expenses (Excluding Interest and Residual Trust Expenses) to Average Net Assets Including Preferred Shares (c)..... 0.63% 0.78% 0.75% 0.82% 0.81% Ratio of Net Investment Income to Average Net Assets Applicable to Common Shares (d)....................................... 4.99% 4.92% 5.37% 6.15% 6.43% SENIOR SECURITIES: Total Preferred Shares Outstanding.......... 13,600 13,600 6,000 6,000 6,000 Asset Coverage Per Preferred Share (e)...... $63,629 $66,761 $67,307 $68,253 $68,560 Involuntary Liquidating Preference Per Preferred Share........................... $25,000 $25,000 $25,000 $25,000 $25,000 Average Market Value Per Preferred Share.... $25,000 $25,000 $25,000 $25,000 $25,000
(a)Based on average shares outstanding. (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. See Notes to Financial Statements 33 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 2007 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. 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 last reported 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. Swaps are valued using market quotations obtained from brokers. 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 October 31, 2007, the Trust had $7,441,712 of when-issued or 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 Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no provision for federal income taxes is required. The Trust intends to utilize provisions of the federal income tax laws which allow it to carry a realized capital loss forward for eight years following the year of the loss and offset these losses against any future realized capital gains. 34 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 2007 continued At October 31, 2007, the Trust had an accumulated capital loss carryforward for tax purposes of $4,964,859 which will expire according to the following schedule.
AMOUNT EXPIRATION $ 577,984................................................... October 31, 2013 1,179,918.................................................. October 31, 2014 3,206,957.................................................. October 31, 2015
Part of the capital loss carryforward above was acquired due to a merger with another regulated investment company. Please see footnote 3 for details. At October 31, 2007, the cost and related gross unrealized appreciation and depreciation are as follows: Cost of investments for tax purposes........................ $837,926,533 ============ Gross tax unrealized appreciation........................... $ 38,447,989 Gross tax unrealized depreciation........................... (14,646,773) ------------ Net tax unrealized appreciation on investments.............. $ 23,801,216 ============
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, which are included as ordinary income for tax purposes. The tax character of distributions paid during the years ended October 31, 2007 and 2006 was as follows:
2007 2006 Distributions paid from: Ordinary income........................................... $ 1,380 $ 478,073 Tax exempt income......................................... 39,305,813 32,610,353 Long-term capital gain.................................... -0- 6,136,619 ----------- ----------- $39,307,193 $39,225,045 =========== ===========
Permanent differences, primarily due to non-deductible costs, resulted in the following reclassification among the Trust's components of net assets at October 31, 2007:
ACCUMULATED UNDISTRIBUTED NET ACCUMULATED NET REALIZED INVESTMENT INCOME LOSS PAID IN SURPLUS $55,812 $1,062 $(56,874)
As of October 31, 2007, the components of distributable earnings on a tax basis were as follows: Undistributed ordinary income............................... $ 1,325 Undistributed tax-exempt income............................. 2,233,162
35 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 2007 continued Net realized gains or losses may differ for financial reporting and tax purposes primarily as a result of gains or losses recognized on securities for tax purposes but not for book, the deferral of losses relating to wash sale transactions and gains or losses recognized for tax purposes on open futures transactions on October 31, 2007. F. FLOATING RATE NOTE OBLIGATIONS RELATED TO SECURITIES HELD The Trust enters into transactions in which it transfers to dealer trusts fixed rate bonds in exchange for cash and residual interest in the dealer trusts' assets and cash flows, which are in the form of inverse floating rate investments. The dealer trusts fund the purchases of the fixed rate bonds by issuing floating rate notes to third parties and allowing the Trust to retain residual interests in the bonds. The Trust enters into shortfall agreements with the dealer trusts, which commit the Trust to pay the dealer trusts, in certain circumstances, the difference between the liquidation value of the fixed rate bonds held by the dealer trusts and the liquidation value of the floating rate notes held by third parties, as well as any shortfalls in interest cash flows. The residual interests held by the Trust (inverse floating rate investments) include the right of the Trust (1) to cause the holders of the floating rate notes to tender their notes at par at the next interest rate reset date, and (2) to transfer the municipal bond from the dealer trusts to the Trust, thereby collapsing the dealer trusts. The Trust accounts for the transfer of bonds to the dealer trusts as secured borrowings, with the securities transferred remaining in the Trust's investments assets, and the related floating rate notes reflected as Trust liabilities under the caption "Floating Rate Note Obligations" on the Statement of Assets and Liabilities. The Trust records the interest income from the fixed rate bonds under the caption "Interest" and records the expenses related to floating rate note obligations and any administrative expenses of the dealer trusts under the caption "Interest and Residual Trust Expenses" in the Trust's Statement of Operations. The notes issued by the dealer trust have interest rates that reset weekly and the floating rate note holders have the option to tender their notes to the dealer trusts for redemption at par at each reset date. At October 31, 2007, Trust investments with a value of $195,974,260 are held by the dealer trusts and serve as collateral for the $145,423,000 in floating rate notes outstanding at that date. Contractual maturities of the floating rate notes and interest rates in effect at October 31, 2007 are presented on the Portfolio of Investments. The average floating rate notes outstanding and average annual interest and fee rate related to residual interests during the fiscal year ended October 31, 2007 were $132,272,000 and 4.16%, respectively. 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") will provide investment advice and facilities to the Trust for an annual fee payable monthly of .55% of the average daily net assets including preferred shares of the Trust. Effective December 1, 2006, the Adviser has agreed to waive investment advisory fees equal to .10% of the average daily net assets including preferred shares of the Trust. For the year ended October 31, 2007, the Adviser waived $814,532 of its advisory fees. This waiver is voluntary and can be discounted at any time. For the year ended October 31, 2007, the Trust recognized expenses of approximately $61,600 representing legal services provided by Skadden, Arps, Slate, Meagher & Flom LLP, of which a Trustee of the Trust is a partner of such firm and he and his law firm provide legal services as legal counsel to the Trust. 36 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 2007 continued Under separate Legal Services, Accounting Services and Chief Compliance Officer (CCO) Employment agreements, the Adviser provides accounting and legal services and the CCO provides compliance services to the Trust. The costs of these services are allocated to each trust. For the year ended October 31, 2007, the Trust recognized expenses of approximately $96,000 representing Van Kampen Investments Inc.'s or its affiliates' (collectively "Van Kampen") cost of providing accounting and legal services to the Trust, as well as, the salary, benefits and related costs of the CCO and related support staff paid by Van Kampen. Services provided pursuant to the Legal Services agreement are reported as part of "Professional Fees" on the Statement of Operations. Services provided pursuant to the Accounting Services and CCO Employment agreement are reported as part of "Accounting and Administrative Expenses" on the Statement of Operations. 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 also 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 For the years ended October 31, 2007 and 2006, transactions in common shares were as follows:
YEAR ENDED YEAR ENDED OCTOBER 31, 2007 OCTOBER 31, 2006 Beginning Shares........................................ 34,172,537 15,357,684 Shares Repurchased*..................................... (215,300) -0- Shares Acquired Through Merger.......................... -0- 18,814,853 ---------- ---------- Ending Shares........................................... 33,957,237 34,172,537 ========== ==========
* On February 28, 2007, the Trust commenced a share repurchase program for purposes of enhancing stockholder value and reducing the discount at which the Trust's shares trade from their net asset value. For the period ended October 31, 2007, the Trust repurchased 215,300 of its shares at an average discount of 6.59% from net asset value per share. The Trust expects to continue to repurchase its outstanding shares at such time and in such amounts as it believes such activity will further the accomplishment of the foregoing objectives, subject to review of the Trustees. On January 27, 2006 the Trust acquired all of the assets and liabilities of the Van Kampen Advantage Municipal Income Trust (ticker symbol VKA) through a tax free reorganization approved by VKA's shareholders on January 11, 2006. The Trust issued 18,814,853 common shares with a net asset value of $306,870,227 and 7,600 Auction Preferred Shares (APS) with a liquidation value of $190,000,000 in exchange for VKA's net assets. The shares of VKA were converted into Trust shares at a ratio of 0.984721 to 1 and 1 to 1, for common shares and APS, respectively. Net unrealized appreciation of VKA as of January 27, 2006 was $26,207,937. The Trust assumed VKA's book to tax accretion difference, which resulted in a $652,090 increase to accumulated undistributed net investment income 37 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 2007 continued and a corresponding decrease to net unrealized appreciation. Combined net assets applicable to common shares on the day of the reorganization were $557,410,249 and combined net assets including preferred shares were $897,410,249. Included in these net assets was a capital loss carryforward of $577,984, gains or losses of $287,664 recognized for tax purposes on open futures transactions at January 27, 2006, and deferred losses relating to wash sales transactions of $84,376 which are included with accumulated net realized loss of which all can be utilized by the acquiring Trust. Additionally, included in these net assets was a deferred compensation and retirement plan balance of $357,767 which is included with accumulated undistributed net investment income. 4. INVESTMENT TRANSACTIONS During the period, the cost of purchases and proceeds from sales of investments, excluding short-term investments, were $298,091,397 and $230,393,490, 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 the 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 these instances, 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. 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 exchange traded futures contracts on U.S. Treasury securities and typically closes the contract prior to the delivery date. These contracts are generally used to manage the Trust's effective maturity and duration. 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 futures commission merchant pursuant to the rules and regulations promulgated under the 1940 Act, 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. 38 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 2007 continued Transactions in futures contracts for the year ended October 31, 2007 were as follows:
CONTRACTS Outstanding at October 31, 2006............................. 826 Futures Opened.............................................. 5,941 Futures Closed.............................................. (5,877) ------ Outstanding at October 31, 2007............................. 890 ======
B. INVERSE FLOATING RATE SECURITIES An inverse floating rate security is one where the coupon is inversely indexed to a short-term floating interest rate multiplied by a specific factor. As the floating rate rises, the coupon is reduced. Conversely, as the floating rate declines, the coupon is increased. The price of these securities may be more volatile than the price of a comparable fixed rate security. These instruments are typically used by the Trust to enhance the yield of the portfolio. These instruments are identified in the Portfolio of Investments. C. INTEREST RATE SWAPS The Trust may enter into forward interest rate swap transactions intended to help the Trust manage its overall interest rate sensitivity, either shorter or longer, generally to more closely align the Trust's interest rate sensitivity with that of the broader municipal market. Forward interest rate swap transactions involve the Trust's agreement with a counterparty to pay, in the future, a fixed or variable rate payment in exchange for the counterparty paying the Trust a variable or fixed rate payment, the accruals for which would begin at a specified date in the future (the "effective date"). The amount of the payment obligation is based on the notional amount of the forward swap contract and the termination date of the swap (which is akin to a bond's maturity). The value of the Trust's swap commitment would increase or decrease based primarily on the extent to which long-term interest rates for bonds having a maturity of the swap's termination date increases or decreases. The Trust may terminate a swap contract prior to the effective date, at which point a realized gain or loss is recognized. When a forward swap is terminated, it ordinarily does not involve the delivery of securities or other underlying assets or principal, but rather is settled in cash on a net basis. The Trust intends, but is not obligated, to terminate its forward swaps before the effective date. Accordingly, the risk of loss with respect to the swap counterparty on such transactions is limited to the credit risk associated with a counterparty failing to honor its commitment to pay any realized gain to the Trust upon termination. To reduce such credit risk, all counterparties are required to pledge collateral daily (based on the daily valuation of each swap) on behalf of the Trust with a value approximately equal to the amount of any unrealized gain. Reciprocally, when the Trust has an unrealized loss on a swap contract, the Trust has instructed the custodian to pledge cash or liquid securities as collateral with a value approximately equal to the amount of the unrealized loss. Collateral pledges are monitored and subsequently adjusted if and when the swap valuations fluctuate. Restricted cash for segregating purposes is shown on the Statement of Assets and Liabilities. Risks may arise as a result of the potential inability of the counterparties to meet the terms of their contracts. If there is a default by the counterparty, the Trust will have contractual remedies pursuant to the agreements related to the transaction. 39 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 2007 continued 6. PREFERRED SHARES The Trust has outstanding 13,600 APS. Series A and B contain 3,000 shares, Series C, D and E contain 2,000 shares, and Series F contains 1,600 shares. 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 October 31, 2007 was 3.829%. During the year ended October 31, 2007, the rates ranged from 3.300% to 4.400%. 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. 7. INDEMNIFICATIONS The Trust enters into contracts that contain a variety of indemnifications. The Trust's maximum exposure under these arrangements is unknown. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote. 8. ACCOUNTING PRONOUNCEMENTS In July 2006, the Financial Accounting Standards Board (FASB) issued Interpretation 48, Accounting for Uncertainty in Income Taxes --an interpretation of FASB Statement 109 (FIN 48). FIN 48 clarifies the accounting for income taxes by prescribing the minimum recognition threshold a tax position must meet before being recognized in the financial statements. FIN 48 is effective for the fiscal years beginning after December 15, 2006, and is to be applied to all open tax years as of the effective date. Recent SEC guidance allows implementing FIN 48 in the trust NAV calculations as late as the trust's last NAV calculation in the first required financial statement period. As a result, the Trust will incorporate FIN 48 in its semiannual report on April 30, 2008. The impact of the Trust's financial statements, if any, is currently being assessed. In addition, in September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Trust's financial statement disclosures. 40 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Trustees and Shareholders of Van Kampen Municipal Opportunity Trust We have audited the accompanying statement of assets and liabilities of Van Kampen Municipal Opportunity Trust (the "Trust"), including the portfolio of investments, as of October 31, 2007, the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trust is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2007, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Van Kampen Municipal Opportunity Trust as of October 31, 2007, the results of its operations and cash flows for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. DELOITTE & TOUCHE LLP Chicago, Illinois December 24, 2007 41 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST DIVIDEND REINVESTMENT PLAN The dividend reinvestment plan (the "Plan") offers you a prompt and simple way to reinvest your dividends and capital gains distributions into additional shares of the Trust. Under the Plan, the money you earn from dividends and capital gains distributions will be reinvested automatically in more shares of the Trust, allowing you to potentially increase your investment over time. PLAN BENEFITS - - ADD TO YOUR ACCOUNT You may increase your shares in the Trust easily and automatically with the Plan. - - LOW TRANSACTION COSTS Shareholders who participate in the Plan are able to buy shares at below- market prices when the Trust is trading at a premium to its net asset value. In addition, transaction costs are low because when new shares are issued by the Trust, there is no brokerage fee, and when shares are bought in blocks on the open market, the brokerage commission is shared among all participants. - - CONVENIENCE You will receive a detailed account statement from Computershare Trust Company, N.A., which administers the Plan, whenever shares are reinvested for you. The statement shows your total distributions, date of investment, shares acquired, and price per share, as well as the total number of shares in your reinvestment account. You can also access your account via the Internet. To do this, please go to vankampen.com. - - SAFEKEEPING Computershare Trust Company, N.A. will hold the shares it has acquired for you in safekeeping. HOW TO PARTICIPATE IN THE PLAN If you own shares in your own name, you can participate directly in the Plan. If your shares are held in "street name"--in the name of your brokerage firm, bank, or other financial institution--you must instruct that entity to participate on your behalf. If they are unable to participate on your behalf, you may request that they reregister your shares in your own name so that you may enroll in the Plan. If you choose to participate in the Plan, your dividends and capital gains distributions will be promptly reinvested for you, automatically increasing your 42 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST DIVIDEND REINVESTMENT PLAN continued shares. If the Trust is trading at a share price that is equal to its net asset value (NAV), you'll pay that amount for your reinvested shares. However, if the Trust is trading above or below NAV, the price is determined by one of two ways: 1. PREMIUM If the Trust is trading at a premium--a market price that is higher than its NAV--you'll pay either the NAV or 95 percent of the market price, whichever is greater. When the Trust trades at a premium, you'll pay less for your reinvested shares than an ordinary investor purchasing shares on the stock exchange. Keep in mind, a portion of your price reduction may be taxable because you are receiving shares at less than market price. 2. DISCOUNT If the Trust is trading at a discount--a market price that is lower than its NAV--you'll pay the market price for your reinvested shares. HOW TO ENROLL To enroll in the Plan, please read the Terms and Conditions in the Plan brochure. You can obtain a copy of the Plan Brochure and enroll in the Plan by visiting vankampen.com, calling toll-free (800) 341-2929 or notifying us in writing at Van Kampen Closed End Funds, Computershare Trust Company, N.A., P.O. Box 43078, Providence, RI 02940-3078. Please include the Trust name and account number and ensure that all shareholders listed on the account sign these written instructions. Your participation in the Plan will begin with the next dividend or capital gains distribution payable after Computershare Trust Company, N.A. receives your authorization, as long as they receive it before the "record date," which is generally ten business days before the dividend is paid. If your authorization arrives after such record date, your participation in the Plan will begin with the following dividend or distribution. COSTS OF THE PLAN There is no direct charge to you for reinvesting dividends and capital gains distributions because the Plan's fees are paid by the Trust. However, when applicable, you will pay your portion of any brokerage commissions incurred when the new shares are purchased on the open market. These brokerage commissions are typically less than the standard brokerage charges for individual transactions, because shares are purchased for all participants in blocks, resulting in lower commissions for each individual participant. Any brokerage commissions or service fees are averaged into the purchase price. TAX IMPLICATIONS The automatic reinvestment of dividends and capital gains distributions does not relieve you of any income tax that may be due on dividends or 43 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST DIVIDEND REINVESTMENT PLAN continued distributions. You will receive tax information annually to help you prepare your federal and state income tax returns. Van Kampen does not offer tax advice. The tax information contained herein is general and is not exhaustive by nature. It was not intended or written to be used, and it cannot be used by any taxpayer, for avoiding penalties that may be imposed on the taxpayer under U.S. federal tax laws. Federal and state tax laws are complex and constantly changing. Shareholders should always consult a legal or tax advisor for information concerning their individual situation. HOW TO WITHDRAW FROM THE PLAN To withdraw from the Plan please visit vankampen.com or call (800) 341-2929 or notify us in writing at the address below. Van Kampen Closed-End Funds Computershare Trust Company, N.A. P.O. Box 43078 Providence, RI 02940-3078 All shareholders listed on the account must sign any written withdrawal instructions. If you withdraw, you have three options with regard to the shares held in your account: 1. If you opt to continue to hold your non-certificated shares, they will be held by Computershare Trust Company N.A. 2. If you opt to sell your shares through Van Kampen, we will sell all full and fractional shares and send the proceeds via check to your address of record after deducting brokerage commissions and a $2.50 service fee. 3. You may sell your shares through your financial advisor through the Direct Registration Systems ("DRS"). DRS is a service within the securities industry that allows Trust shares to be held in your name in electronic format. You retain full ownership of your shares, without having to hold a stock certificate. The Trust and Computershare Trust Company, N.A. may amend or terminate the Plan. Participants will receive written notice at least 30 days before the effective date of any amendment. In the case of termination, Participants will receive written notice at least 30 days before the record date for the payment of any dividend or capital gains distribution by the Trust. In the case of amendment or termination necessary or appropriate to comply with applicable law or the rules and policies of the Securities and Exchange Commission or any other regulatory authority, such written notice will not be required. TO OBTAIN A COMPLETE COPY OF THE DIVIDEND REINVESTMENT PLAN, PLEASE CALL OUR CLIENT RELATIONS DEPARTMENT AT 800-341-2929 OR VISIT VANKAMPEN.COM. 44 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST BOARD OF TRUSTEES, OFFICERS AND IMPORTANT ADDRESSES BOARD OF TRUSTEES DAVID C. ARCH JERRY D. CHOATE ROD DAMMEYER LINDA HUTTON HEAGY R. CRAIG KENNEDY HOWARD J KERR JACK E. NELSON HUGO F. SONNENSCHEIN WAYNE W. WHALEN* - Chairman SUZANNE H. WOOLSEY OFFICERS RONALD E. ROBISON President and Principal Executive Officer DENNIS SHEA Vice President J. DAVID GERMANY Vice President AMY R. DOBERMAN Vice President STEFANIE V. CHANG Vice President and Secretary JOHN L. SULLIVAN Chief Compliance Officer STUART N. SCHULDT Chief Financial Officer and Treasurer INVESTMENT ADVISER VAN KAMPEN ASSET MANAGEMENT 522 Fifth Avenue New York, New York 10036 CUSTODIAN STATE STREET BANK AND TRUST COMPANY One Lincoln Street Boston, Massachusetts 02111 TRANSFER AGENT COMPUTERSHARE TRUST COMPANY, N.A. c/o Computershare Investor Services P.O. Box 43078 Providence, Rhode Island 02940-3078 LEGAL COUNSEL SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP 333 West Wacker Drive Chicago, Illinois 60606 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM DELOITTE & TOUCHE LLP 111 South Wacker Drive Chicago, Illinois 60606-4301 For federal income tax purposes, the following information is furnished with respect to the distributions paid by the Trust during its taxable year ended October 31, 2007. The Trust designated 100.0% of the income distributions as a tax-exempt income distribution. In January, the Trust provides tax information to shareholders for the preceding calendar year. * "Interested persons" of the Trust, as defined in the investment Company Act of 1940, as amended. 45 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST RESULTS OF SHAREHOLDER VOTES The Annual Meeting of the Shareholders of the Trust was held on June 22, 2007, where shareholders voted on the election of trustees. With regard to the election of the following trustees by common shareholders of the Trust:
# OF SHARES ------------------------------ IN FAVOR WITHHELD - ------------------------------------------------------------------------------------------ R. Craig Kennedy.......................................... 28,900,007 512,330 Jack E. Nelson............................................ 28,877,501 534,836
With regard to the election of the following trustees by preferred shareholders of the Trust:
# OF SHARES ---------------------------- IN FAVOR WITHHELD - ------------------------------------------------------------------------------------------ Hugo F. Sonnenschein........................................ 9,587 22
The other trustees of the Trust whose terms did not expire in 2007 are David C. Arch, Jerry D. Choate, Rod Dammeyer, Linda Hutton Heagy, Howard J Kerr, Wayne W. Whalen, and Suzanne H. Woolsey. 46 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST TRUSTEES AND OFFICERS The business and affairs of the Trust are managed under the direction of the Trust's Board of Trustees and the Trust's officers appointed by the Board of Trustees. The tables below list the trustees and executive officers of the Trust and their principal occupations during the last five years, other directorships held by trustees and their affiliations, if any, with Van Kampen Investments, the Adviser, the Distributor, Van Kampen Advisors Inc., Van Kampen Exchange Corp. and Investor Services. The term "Fund Complex" includes each of the investment companies advised by the Adviser as of the date of this Annual Report. Trustees of the Trust generally serve three year terms or until their successors are duly elected and qualified. Officers are annually elected by the trustees. INDEPENDENT TRUSTEES:
NUMBER OF TERM OF FUNDS IN OFFICE AND FUND POSITION(S) LENGTH OF COMPLEX NAME, AGE AND ADDRESS HELD WITH TIME PRINCIPAL OCCUPATION(S) OVERSEEN OTHER DIRECTORSHIPS OF INDEPENDENT TRUSTEE TRUST SERVED DURING PAST 5 YEARS BY TRUSTEE HELD BY TRUSTEE David C. Arch (62) Trustee Trustee Chairman and Chief 73 Trustee/Director/Managing Blistex Inc. since 1992 Executive Officer of General Partner of funds 1800 Swift Drive Blistex Inc., a consumer in the Fund Complex. Oak Brook, IL 60523 health care products Director of the Heartland manufacturer. Alliance, a nonprofit organization serving human needs based in Chicago. Board member of the Illinois Manufacturers' Association. Jerry D. Choate (69) Trustee Trustee Prior to January 1999, 73 Trustee/Director/Managing 33971 Selva Road since 2003 Chairman and Chief General Partner of funds Suite 130 Executive Officer of the in the Fund Complex. Dana Point, CA 92629 Allstate Corporation Director of H&R Block, ("Allstate") and Allstate Amgen Inc., a Insurance Company. Prior biotechnological company, to January 1995, and Valero Energy President and Chief Corporation, an Executive Officer of independent refining Allstate. Prior to August company. 1994, various management positions at Allstate.
47
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST TRUSTEE AND OFFICER continued NUMBER OF TERM OF FUNDS IN OFFICE AND FUND POSITION(S) LENGTH OF COMPLEX NAME, AGE AND ADDRESS HELD WITH TIME PRINCIPAL OCCUPATION(S) OVERSEEN OTHER DIRECTORSHIPS OF INDEPENDENT TRUSTEE TRUST SERVED DURING PAST 5 YEARS BY TRUSTEE HELD BY TRUSTEE Rod Dammeyer (67) Trustee Trustee President of CAC, L.L.C., 73 Trustee/Director/Managing CAC, L.L.C. since 1992 a private company General Partner of funds 4350 LaJolla Village Drive offering capital in the Fund Complex. Suite 980 investment and management Director of Quidel San Diego, CA 92122-6223 advisory services. Corporation, Stericycle, Inc., Ventana Medical Systems, Inc. and Trustee of The Scripps Research Institute. Prior to April 2007, Director of GATX Corporation. Prior to April 2004, Director of TheraSense, Inc. Prior to January 2004, Director of TeleTech Holdings Inc. and Arris Group, Inc. Linda Hutton Heagy+ (59) Trustee Trustee Managing Partner of 73 Trustee/Director/Managing Heidrick & Struggles since 2003 Heidrick & Struggles, an General Partner of funds 233 South Wacker Drive international executive in the Fund Complex. Suite 7000 search firm. Prior to Trustee on the University Chicago, IL 60606 1997, Partner of Ray & of Chicago Hospitals Berndtson, Inc., an Board, Vice Chair of the executive recruiting Board of the YMCA of firm. Prior to 1995, Metropolitan Chicago and Executive Vice President a member of the Women's of ABN AMRO, N.A., a bank Board of the University holding company. Prior to of Chicago. 1990, Executive Vice President of The Exchange National Bank.
48
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST TRUSTEE AND OFFICER continued NUMBER OF TERM OF FUNDS IN OFFICE AND FUND POSITION(S) LENGTH OF COMPLEX NAME, AGE AND ADDRESS HELD WITH TIME PRINCIPAL OCCUPATION(S) OVERSEEN OTHER DIRECTORSHIPS OF INDEPENDENT TRUSTEE TRUST SERVED DURING PAST 5 YEARS BY TRUSTEE HELD BY TRUSTEE R. Craig Kennedy (55) Trustee Trustee Director and President of 73 Trustee/Director/Managing 1744 R Street, NW since 2003 the German Marshall Fund General Partner of funds Washington, DC 20009 of the United States, an in the Fund Complex. independent U.S. Director of First Solar, foundation created to Inc. deepen understanding, promote collaboration and stimulate exchanges of practical experience between Americans and Europeans. Formerly, advisor to the Dennis Trading Group Inc., a managed futures and option company that invests money for individuals and institutions. Prior to 1992, President and Chief Executive Officer, Director and member of the Investment Committee of the Joyce Foundation, a private foundation. Howard J Kerr (72) Trustee Trustee Prior to 1998, President 73 Trustee/Director/Managing 14 Huron Trace since 1992 and Chief Executive General Partner of funds Galena, IL 61036 Officer of Pocklington in the Fund Complex. Corporation, Inc., an Director of the Lake investment holding Forest Bank & Trust. company. Director of the Marrow Foundation. Jack E. Nelson (71) Trustee Trustee President of Nelson 73 Trustee/Director/Managing 423 Country Club Drive since 2003 Investment Planning General Partner of funds Winter Park, FL 32789 Services, Inc., a in the Fund Complex. financial planning company and registered investment adviser in the State of Florida. President of Nelson Ivest Brokerage Services Inc., a member of FINRA, Securities Investors Protection Corp. and the Municipal Securities Rulemaking Board. President of Nelson Sales and Services Corporation, a marketing and services company to support affiliated companies.
49
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST TRUSTEE AND OFFICER continued NUMBER OF TERM OF FUNDS IN OFFICE AND FUND POSITION(S) LENGTH OF COMPLEX NAME, AGE AND ADDRESS HELD WITH TIME PRINCIPAL OCCUPATION(S) OVERSEEN OTHER DIRECTORSHIPS OF INDEPENDENT TRUSTEE TRUST SERVED DURING PAST 5 YEARS BY TRUSTEE HELD BY TRUSTEE Hugo F. Sonnenschein (67) Trustee Trustee President Emeritus and 73 Trustee/Director/Managing 1126 E. 59th Street since 1994 Honorary Trustee of the General Partner of funds Chicago, IL 60637 University of Chicago and in the Fund Complex. the Adam Smith Trustee of the University Distinguished Service of Rochester and a member Professor in the of its investment Department of Economics committee. Member of the at the University of National Academy of Chicago. Prior to July Sciences, the American 2000, President of the Philosophical Society and University of Chicago. a fellow of the American Academy of Arts and Sciences.
50
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST TRUSTEE AND OFFICER continued NUMBER OF TERM OF FUNDS IN OFFICE AND FUND POSITION(S) LENGTH OF COMPLEX NAME, AGE AND ADDRESS HELD WITH TIME PRINCIPAL OCCUPATION(S) OVERSEEN OTHER DIRECTORSHIPS OF INDEPENDENT TRUSTEE TRUST SERVED DURING PAST 5 YEARS BY TRUSTEE HELD BY TRUSTEE Suzanne H. Woolsey, Ph.D. Trustee Trustee Chief Communications 73 Trustee/Director/Managing (66) since 2003 Officer of the National General Partner of funds 815 Cumberstone Road Academy of in the Fund Complex. Harwood, MD 20776 Sciences/National Director of Fluor Corp., Research Council, an an engineering, independent, federally procurement and chartered policy construction institution, from 2001 to organization, since November 2003 and Chief January 2004. Director of Operating Officer from Intelligent Medical 1993 to 2001. Prior to Devices, Inc., a symptom 1993, Executive Director based diagnostic tool for of the Commission on physicians and clinical Behavioral and Social labs. Director of the Sciences and Education at Institute for Defense the National Academy of Analyses, a federally Sciences/National funded research and Research Council. From development center, 1980 through 1989, Director of the German Partner of Coopers & Marshall Fund of the Lybrand. United States, Director of the Rocky Mountain Institute and Trustee of California Institute of Technology and the Colorado College.
51 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST TRUSTEE AND OFFICER continued INTERESTED TRUSTEE:*
NUMBER OF TERM OF FUNDS IN OFFICE AND FUND POSITION(S) LENGTH OF COMPLEX NAME, AGE AND ADDRESS HELD WITH TIME PRINCIPAL OCCUPATION(S) OVERSEEN OTHER DIRECTORSHIPS OF INTERESTED TRUSTEE TRUST SERVED DURING PAST 5 YEARS BY TRUSTEE HELD BY TRUSTEE Wayne W. Whalen* (68) Trustee Trustee Partner in the law firm 73 Trustee/Director/Managing 333 West Wacker Drive since 1992 of Skadden, Arps, Slate, General Partner of funds Chicago, IL 60606 Meagher & Flom LLP, legal in the Fund Complex. counsel to funds in the Director of the Abraham Fund Complex. Lincoln Presidential Library Foundation.
+ As indicated above, Ms. Heagy is an employee of Heidrick and Struggles, an international executive search firm ("Heidrick"). Heidrick has been (and may continue to be) engaged by Morgan Stanley from time to time to perform executive searches. Such searches have been unrelated to Van Kampen's or Morgan Stanley's asset management businesses and have been done by professionals at Heidrick without any involvement by Ms. Heagy. Ethical wall procedures exist to ensure that Ms. Heagy will not have any involvement with any searches performed by Heidrick for Morgan Stanley. Ms. Heagy does not receive any compensation, directly or indirectly, for searches performed by Heidrick for Morgan Stanley. Ms. Heagy does own common shares of Heidrick (representing less than 1% of Heidrick's outstanding common shares). * Mr. Whalen is an "interested person" (within the meaning of Section 2(a)(19) of the 1940 Act) of certain funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such funds in the Fund Complex. 52 VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST TRUSTEE AND OFFICER continued OFFICERS:
TERM OF OFFICE AND POSITION(S) LENGTH OF NAME, AGE AND HELD WITH TIME PRINCIPAL OCCUPATION(S) ADDRESS OF OFFICER TRUST SERVED DURING PAST 5 YEARS Ronald E. Robison (68) President and Officer President of funds in the Fund Complex since September 2005 522 Fifth Avenue Principal Executive since 2003 and Principal Executive Officer of funds in the Fund Complex New York, NY 10036 Officer since May 2003. Managing Director of Van Kampen Advisors Inc. since June 2003. Director of Investor Services since September 2002. Director of the Adviser, Van Kampen Investments and Van Kampen Exchange Corp. since January 2005. Managing Director of Morgan Stanley and Morgan Stanley & Co. Incorporated. Managing Director and Director of Morgan Stanley Investment Management Inc. Chief Administrative Officer, Managing Director and Director of Morgan Stanley Investment Advisors Inc. and Morgan Stanley Services Company Inc. Managing Director and Director of Morgan Stanley Distributors Inc. and Morgan Stanley Distribution Inc. Chief Executive Officer and Director of Morgan Stanley Trust. Executive Vice President and Principal Executive Officer of the Institutional and Retail Morgan Stanley Funds. Director of Morgan Stanley SICAV. Previously, Chief Global Operations Officer of Morgan Stanley Investment Management Inc. and Executive Vice President of funds in the Fund Complex from May 2003 to September 2005. Dennis Shea (54) Vice President Officer Managing Director of Morgan Stanley Investment Advisors 522 Fifth Avenue since 2006 Inc., Morgan Stanley Investment Management Inc., the Adviser New York, NY 10036 and Van Kampen Advisors Inc. Chief Investment Officer-Global Equity of the same entities since February 2006. Vice President of Morgan Stanley Institutional and Retail Funds since February 2006. Vice President of funds in the Fund Complex since March 2006. Previously, Managing Director and Director of Global Equity Research at Morgan Stanley from April 2000 to February 2006. J. David Germany (53) Vice President Officer Managing Director of Morgan Stanley Investment Advisors 20 Bank Street, since 2006 Inc., Morgan Stanley Investment Management Inc., the Adviser Canary Wharf and Van Kampen Advisors Inc. Chief Investment London, GBR E14 4AD Officer--Global Fixed Income of the same entities since December 2005. Managing Director and Director of Morgan Stanley Investment Management Ltd. Director of Morgan Stanley Investment Management (ACD) Limited since December 2003. Vice President of Morgan Stanley Institutional and Retail Funds since February 2006. Vice President of funds in the Fund Complex since March 2006.
53
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST TRUSTEE AND OFFICER continued TERM OF OFFICE AND POSITION(S) LENGTH OF NAME, AGE AND HELD WITH TIME PRINCIPAL OCCUPATION(S) ADDRESS OF OFFICER TRUST SERVED DURING PAST 5 YEARS Amy R. Doberman (45) Vice President Officer Managing Director and General Counsel--U.S. Investment 522 Fifth Avenue since 2004 Management; Managing Director of Morgan Stanley Investment New York, NY 10036 Management Inc., Morgan Stanley Investment Advisors Inc. and the Adviser. Vice President of the Morgan Stanley Institutional and Retail Funds since July 2004 and Vice President of funds in the Fund Complex since August 2004. Previously, Managing Director and General Counsel of Americas, UBS Global Asset Management from July 2000 to July 2004 and General Counsel of Aeltus Investment Management, Inc. from January 1997 to July 2000. Stefanie V. Chang (41) Vice President Officer Executive Director of Morgan Stanley Investment Management 522 Fifth Avenue and Secretary since 2003 Inc. Vice President and Secretary of funds in the Fund New York, NY 10036 Complex. John L. Sullivan (52) Chief Compliance Officer Chief Compliance Officer of funds in the Fund Complex since 1 Parkview Plaza - Suite 100 Officer since 1998 August 2004. Prior to August 2004, Director and Managing Oakbrook Terrace, IL 60181 Director of Van Kampen Investments, the Adviser, Van Kampen Advisors Inc. and certain other subsidiaries of Van Kampen Investments, Vice President, Chief Financial Officer and Treasurer of funds in the Fund Complex and head of Fund Accounting for Morgan Stanley Investment Management Inc. Prior to December 2002, Executive Director of Van Kampen Investments, the Adviser and Van Kampen Advisors Inc. Stuart N. Schuldt (45) Chief Financial Officer Officer Executive Director of Morgan Stanley Investment Management 1 Parkview Plaza - Suite 100 and Treasurer since 2007 Inc. since June 2007. Chief Financial Officer and Treasurer Oakbrook Terrace, IL 60181 of funds in the Fund Complex since June 2007. Prior to June 2007, Senior Vice President of Northern Trust Company, Treasurer and Principal Financial Officer for Northern Trust U.S. mutual fund complex.
In accordance with Section 303A.12(a) of the New York Stock Exchange Listed Company Manual, the Trust's Chief Executive Officer has certified to the New York Stock Exchange that, as of June 27, 2007, he was not aware of any violation by the Trust of NYSE corporate governance listing standards. The certifications by the Trust's principal executive officer and principal financial officer required by Rule 30a-2 under the 1940 Act were filed with the Trust's report to the SEC on Form N-CSR and are available on the Securities and Exchange Commission's web site at http://www.sec.gov. 54 Van Kampen Municipal Opportunity Trust An Important Notice Concerning Our U.S. Privacy Policy We are required by federal law to provide you with a copy of our Privacy Policy annually. The following Policy applies to current and former individual clients of Van Kampen Investments Inc., Van Kampen Asset Management, Van Kampen Advisors Inc., Van Kampen Funds Inc., Van Kampen Investor Services Inc. and Van Kampen Exchange Corp., as well as current and former individual investors in Van Kampen mutual funds, unit investment trusts, and related companies. This Policy is not applicable to partnerships, corporations, trusts or other non-individual clients or account holders, nor is this Policy applicable to individuals who are either beneficiaries of a trust for which we serve as trustee or participants in an employee benefit plan administered or advised by us. This Policy is, however, applicable to individuals who select us to be a custodian of securities or assets in individual retirement accounts, 401(k) accounts, 529 Educational Savings Accounts, accounts subject to the Uniform Gifts to Minors Act, or similar accounts. Please note that we may amend this Policy at any time, and will inform you of any changes to this Policy as required by law. WE RESPECT YOUR PRIVACY We appreciate that you have provided us with your personal financial information. We strive to maintain the privacy of such information while we help you achieve your financial objectives. This Policy describes what non-public personal information we collect about you, why we collect it, and when we may share it with others. We hope this Policy will help you understand how we collect and share non-public personal information that we gather about you. Throughout this Policy, we refer to the non-public information that personally identifies you or your accounts as "personal information." 1. WHAT PERSONAL INFORMATION DO WE COLLECT ABOUT YOU? To serve you better and manage our business, it is important that we collect and maintain accurate information about you. We may obtain this information from applications and other forms you submit to us, from your dealings with us, from consumer reporting agencies, from our Web sites and from third parties and other sources. (continued on next page) Van Kampen Municipal Opportunity Trust An Important Notice Concerning Our U.S. Privacy Policy continued For example: -- We may collect information such as your name, address, e-mail address, telephone/fax numbers, assets, income and investment objectives through applications and other forms you submit to us. -- We may obtain information about account balances, your use of account(s) and the types of products and services you prefer to receive from us through your dealings and transactions with us and other sources. -- We may obtain information about your creditworthiness and credit history from consumer reporting agencies. -- We may collect background information from and through third-party vendors to verify representations you have made and to comply with various regulatory requirements. -- If you interact with us through our public and private Web sites, we may collect information that you provide directly through online communications (such as an e-mail address). We may also collect information about your Internet service provider, your domain name, your computer's operating system and Web browser, your use of our Web sites and your product and service preferences, through the use of "cookies." "Cookies" recognize your computer each time you return to one of our sites, and help to improve our sites' content and personalize your experience on our sites by, for example, suggesting offerings that may interest you. Please consult the Terms of Use of these sites for more details on our use of cookies. 2. WHEN DO WE DISCLOSE PERSONAL INFORMATION WE COLLECT ABOUT YOU? To provide you with the products and services you request, to serve you better and to manage our business, we may disclose personal information we collect about you to our affiliated companies and to non-affiliated third parties as required or permitted by law. A. INFORMATION WE DISCLOSE TO OUR AFFILIATED COMPANIES. We do not disclose personal information that we collect about you to our affiliated companies except to enable them to provide services on our behalf or as otherwise required or permitted by law. B. INFORMATION WE DISCLOSE TO THIRD PARTIES. We do not disclose personal information that we collect about you to non-affiliated third parties except to enable them to provide services on our behalf, to perform joint marketing agreements with (continued on back) Van Kampen Municipal Opportunity Trust An Important Notice Concerning Our U.S. Privacy Policy continued other financial institutions, or as otherwise required or permitted by law. For example, some instances where we may disclose information about you to non-affiliated third parties include: for servicing and processing transactions, to offer our own products and services, to protect against fraud, for institutional risk control, to respond to judicial process or to perform services on our behalf. When we share personal information with these companies, they are required to limit their use of personal information to the particular purpose for which it was shared and they are not allowed to share personal information with others except to fulfill that limited purpose. 3. HOW DO WE PROTECT THE SECURITY AND CONFIDENTIALITY OF PERSONAL INFORMATION WE COLLECT ABOUT YOU? We maintain physical, electronic and procedural security measures to help safeguard the personal information we collect about you. We have internal policies governing the proper handling of client information. Third parties that provide support or marketing services on our behalf may also receive personal information, and we require them to adhere to confidentiality standards with respect to such information. Van Kampen Funds Inc. 1 Parkview Plaza - Suite 100 P.O. Box 5555 Oakbrook Terrace, IL 60181-5555 www.vankampen.com Copyright (C)2007 Van Kampen Funds Inc. All rights reserved. Member FINRA/SIPC. VMOANN 12/07 (VAN KAMPEN INVESTMENTS LOGO) IU07-05132P-Y10/07 Item 2. Code of Ethics. (a) The Trust has adopted a code of ethics (the "Code of Ethics") that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the Trust or a third party. (b) No information need be disclosed pursuant to this paragraph. (c) Due to personnel changes at the Adviser, the list of covered officers set forth in Exhibit B was amended in November 2006 and June 2007 and the general counsel's designee set forth in Exhibit C was amended in October and December 2006. All three editions of Exhibit B and all three editions of Exhibit C are attached. (d) Not applicable. (e) Not applicable. (f) (1) The Trust's Code of Ethics is attached hereto as Exhibit 12(1). (2) Not applicable. (3) Not applicable. Item 3. Audit Committee Financial Expert. The Trust's Board of Trustees has determined that it has three "audit committee financial experts" serving on its audit committee, each of whom are "independent" Trustees : Rod Dammeyer, Jerry Choate and R. Craig Kennedy. Under applicable securities laws, a person who is determined to be an audit committee financial expert will not be deemed an "expert" for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities that are greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and Board of Trustees in the absence of such designation or identification. Item 4. Principal Accountant Fees and Services. (a)(b)(c)(d) and (g). Based on fees billed for the periods shown: 2007
REGISTRANT COVERED ENTITIES(1) ---------- ------------------- AUDIT FEES.............. $34,475 N/A NON-AUDIT FEES AUDIT-RELATED FEES... $ 400 $244,200(2) TAX FEES............. $ 1,600(3) $ 0 ALL OTHER FEES....... $ 0 $ 0 TOTAL NON-AUDIT FEES.... $ 2,000 $244,200 TOTAL................... $36,475 $244,200
2006
REGISTRANT COVERED ENTITIES(1) ---------- ------------------- AUDIT FEES.............. $33,300 N/A NON-AUDIT FEES AUDIT-RELATED FEES... $ 400 $244,200(2) TAX FEES............. $ 1,600(3) $ 0 ALL OTHER FEES....... $ 0 $ 0 TOTAL NON-AUDIT FEES.... $ 2,000 $244,200 TOTAL................... $35,300 $244,200
N/A- Not applicable, as not required by Item 4. (1) Covered Entities include the Adviser (excluding sub-advisors) and any entity controlling, controlled by or under common control with the Adviser that provides ongoing services to the Registrant. (2) Audit-Related Fees represent assurance and related services provided that are reasonably related to the performance of the audit of the financial statements of the Covered Entities' and funds advised by the Adviser or its affiliates, specifically attestation services provided in connection with a SAS 70 Report. (3) Tax Fees represent tax advice and compliance services provided in connection with the review of the Registrant's tax. (e)(1) The audit committee's pre-approval policies and procedures are as follows: JOINT AUDIT COMMITTEE AUDIT AND NON-AUDIT SERVICES PRE-APPROVAL POLICY AND PROCEDURES OF THE VAN KAMPEN FUNDS AS ADOPTED JULY 23, 2003 AND AMENDED MAY 26, 2004(1) 1. STATEMENT OF PRINCIPLES The Audit Committee of the Board is required to review and, in its sole discretion, pre-approve all Covered Services to be provided by the Independent Auditors to the Fund and Covered Entities in order to assure that services performed by the Independent Auditors do not impair the auditor's independence from the Fund.(2) The SEC has issued rules specifying the types of services that an independent auditor may not provide to its audit client, as well as the audit committee's administration of the engagement of the independent auditor. The SEC's rules establish two different approaches to pre-approving services, which the SEC considers to be equally valid. Proposed services either: may be pre-approved without consideration of specific case-by-case services by the Audit Committee ("general pre-approval"); or require the specific pre-approval of the Audit Committee ("specific pre-approval"). The Audit Committee believes that the combination of these two approaches in this Policy will result in an effective and efficient procedure to pre-approve services performed by the Independent Auditors. As set forth in this Policy, unless a type of service has received general pre-approval, it will require specific pre-approval by the Audit Committee (or by any member of the Audit Committee to which pre-approval authority has been delegated) if it is to be provided by the Independent Auditors. Any proposed services exceeding pre-approved cost levels or budgeted amounts will also require specific pre-approval by the Audit Committee. For both types of pre-approval, the Audit Committee will consider whether such services are consistent with the SEC's rules on auditor independence. The Audit Committee will also consider whether the Independent Auditors are best positioned to provide the most effective and efficient services, for reasons such as its familiarity with the Fund's business, people, culture, accounting systems, risk profile and other factors, and whether the service might enhance the Fund's ability to manage or control risk or improve audit quality. All such factors will be considered as a whole, and no one factor should necessarily be determinative. The Audit Committee is also mindful of the relationship between fees for audit and non-audit services in deciding whether to pre-approve any such services and may determine for each fiscal year, the appropriate ratio between the total amount of fees for Audit, Audit-related and Tax services for the Fund (including any Audit-related or Tax service fees for Covered Entities that were subject to pre-approval), and the total amount of fees for certain permissible non-audit services classified as All Other services for the Fund (including any such services for Covered Entities subject to pre-approval). The appendices to this Policy describe the Audit, Audit-related, Tax and All Other services that have the general pre-approval of the Audit Committee. The term of any general pre-approval is 12 months from the date of pre-approval, unless the Audit Committee considers and provides a different period and states otherwise. The Audit Committee will annually review and pre-approve the services that may be provided by the Independent Auditors without obtaining specific pre-approval - ---------- (1) This Joint Audit Committee Audit and Non-Audit Services Pre-Approval Policy and Procedures (the "Policy"), amended as of the date above, supercedes and replaces all prior versions that may have been amended from time to time. (2) Terms used in this Policy and not otherwise defined herein shall have the meanings as defined in the Joint Audit Committee Charter. from the Audit Committee. The Audit Committee will add to or subtract from the list of general pre-approved services from time to time, based on subsequent determinations. The purpose of this Policy is to set forth the policy and procedures by which the Audit Committee intends to fulfill its responsibilities. It does not delegate the Audit Committee's responsibilities to pre-approve services performed by the Independent Auditors to management. The Fund's Independent Auditors have reviewed this Policy and believes that implementation of the Policy will not adversely affect the Independent Auditors' independence. 2. DELEGATION As provided in the Act and the SEC's rules, the Audit Committee may delegate either type of pre-approval authority to one or more of its members. The member to whom such authority is delegated must report, for informational purposes only, any pre-approval decisions to the Audit Committee at its next scheduled meeting. 3. AUDIT SERVICES The annual Audit services engagement terms and fees are subject to the specific pre-approval of the Audit Committee. Audit services include the annual financial statement audit and other procedures required to be performed by the Independent Auditors to be able to form an opinion on the Fund's financial statements. These other procedures include information systems and procedural reviews and testing performed in order to understand and place reliance on the systems of internal control, and consultations relating to the audit. The Audit Committee will monitor the Audit services engagement as necessary, but no less than on a quarterly basis, and will also approve, if necessary, any changes in terms, conditions and fees resulting from changes in audit scope, Fund structure or other items. In addition to the annual Audit services engagement approved by the Audit Committee, the Audit Committee may grant general pre-approval to other Audit services, which are those services that only the Independent Auditors reasonably can provide. Other Audit services may include statutory audits and services associated with SEC registration statements (on Forms N-1A, N-2, N-3, N-4, etc.), periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings. The Audit Committee has pre-approved the Audit services in Appendix B.1. All other Audit services not listed in Appendix B.1 must be specifically pre-approved by the Audit Committee (or by any member of the Audit Committee to which pre-approval has been delegated). 4. AUDIT-RELATED SERVICES Audit-related services are assurance and related services that are reasonably related to the performance of the audit or review of the Fund's financial statements or, to the extent they are Covered Services, the Covered Entities' financial statements, or that are traditionally performed by the Independent Auditors. Because the Audit Committee believes that the provision of Audit-related services does not impair the independence of the auditor and is consistent with the SEC's rules on auditor independence, the Audit Committee may grant general pre-approval to Audit-related services. Audit-related services include, among others, accounting consultations related to accounting, financial reporting or disclosure matters not classified as "Audit services"; assistance with understanding and implementing new accounting and financial reporting guidance from rulemaking authorities; agreed-upon or expanded audit procedures related to accounting and/or billing records required to respond to or comply with financial, accounting or regulatory reporting matters; and assistance with internal control reporting requirements under Forms N-SAR and/or N-CSR. The Audit Committee has pre-approved the Audit-related services in Appendix B.2. All other Audit-related services not listed in Appendix B.2 must be specifically pre-approved by the Audit Committee (or by any member of the Audit Committee to which pre-approval has been delegated). 5. TAX SERVICES The Audit Committee believes that the Independent Auditors can provide Tax services to the Fund and, to the extent they are Covered Services, the Covered Entities, such as tax compliance, tax planning and tax advice without impairing the auditor's independence, and the SEC has stated that the Independent Auditors may provide such services. Hence, the Audit Committee believes it may grant general pre-approval to those Tax services that have historically been provided by the Independent Auditors, that the Audit Committee has reviewed and believes would not impair the independence of the Independent Auditors, and that are consistent with the SEC's rules on auditor independence. The Audit Committee will not permit the retention of the Independent Auditors in connection with a transaction initially recommended by the Independent Auditors, the sole business purpose of which may be tax avoidance and the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Audit Committee will consult with Director of Tax or outside counsel to determine that the tax planning and reporting positions are consistent with this policy. Pursuant to the preceding paragraph, the Audit Committee has pre-approved the Tax Services in Appendix B.3. All Tax services involving large and complex transactions not listed in Appendix B.3 must be specifically pre-approved by the Audit Committee (or by any member of the Audit Committee to which pre-approval has been delegated), including tax services proposed to be provided by the Independent Auditors to any executive officer or trustee/director/managing general partner of the Fund, in his or her individual capacity, where such services are paid for by the Fund (generally applicable only to internally managed investment companies). 6. ALL OTHER SERVICES The Audit Committee believes, based on the SEC's rules prohibiting the Independent Auditors from providing specific non-audit services, that other types of non-audit services are permitted. Accordingly, the Audit Committee believes it may grant general pre-approval to those permissible non-audit services classified as All Other services that it believes are routine and recurring services, would not impair the independence of the auditor and are consistent with the SEC's rules on auditor independence. The Audit Committee has pre-approved the All Other services in Appendix B.4. Permissible All Other services not listed in Appendix B.4 must be specifically pre-approved by the Audit Committee (or by any member of the Audit Committee to which pre-approval has been delegated). A list of the SEC's prohibited non-audit services is attached to this policy as Appendix B.5. The SEC's rules and relevant guidance should be consulted to determine the precise definitions of these services and the applicability of exceptions to certain of the prohibitions. 7. PRE-APPROVAL FEE LEVELS OR BUDGETED AMOUNTS Pre-approval fee levels or budgeted amounts for all services to be provided by the Independent Auditors will be established annually by the Audit Committee. Any proposed services exceeding these levels or amounts will require specific pre-approval by the Audit Committee. The Audit Committee is mindful of the overall relationship of fees for audit and non-audit services in determining whether to pre-approve any such services. For each fiscal year, the Audit Committee may determine the appropriate ratio between the total amount of fees for Audit, Audit-related, and Tax services for the Fund (including any Audit-related or Tax services fees for Covered Entities subject to pre-approval), and the total amount of fees for certain permissible non-audit services classified as All Other services for the Fund (including any such services for Covered Entities subject to pre-approval). 8. PROCEDURES All requests or applications for services to be provided by the Independent Auditors that do not require specific approval by the Audit Committee will be submitted to the Fund's Chief Financial Officer and must include a detailed description of the services to be rendered. The Fund's Chief Financial Officer will determine whether such services are included within the list of services that have received the general pre-approval of the Audit Committee. The Audit Committee will be informed on a timely basis of any such services rendered by the Independent Auditors. Requests or applications to provide services that require specific approval by the Audit Committee will be submitted to the Audit Committee by both the Independent Auditors and the Fund's Chief Financial Officer, and must include a joint statement as to whether, in their view, the request or application is consistent with the SEC's rules on auditor independence. The Audit Committee has designated the Fund's Chief Financial Officer to monitor the performance of all services provided by the Independent Auditors and to determine whether such services are in compliance with this Policy. The Fund's Chief Financial Officer will report to the Audit Committee on a periodic basis on the results of its monitoring. A sample report is included as Appendix B.7. Both the Fund's Chief Financial Officer and management will immediately report to the chairman of the Audit Committee any breach of this Policy that comes to the attention of the Fund's Chief Financial Officer or any member of management. 9. ADDITIONAL REQUIREMENTS The Audit Committee has determined to take additional measures on an annual basis to meet its responsibility to oversee the work of the Independent Auditors and to assure the auditor's independence from the Fund, such as reviewing a formal written statement from the Independent Auditors delineating all relationships between the Independent Auditors and the Fund, consistent with Independence Standards Board No. 1, and discussing with the Independent Auditors its methods and procedures for ensuring independence. 10. COVERED ENTITIES Covered Entities include the Fund's investment adviser(s) and any entity controlling, controlled by or under common control with the Fund's investment adviser(s) that provides ongoing services to the Fund(s). Beginning with non-audit service contracts entered into on or after May 6, 2003, the Fund's audit committee must pre-approve non-audit services provided not only to the Fund but also to the Covered Entities if the engagements relate directly to the operations and financial reporting of the Fund. This list of Covered Entities would include: - Van Kampen Investments Inc. - Van Kampen Asset Management - Van Kampen Advisors Inc. - Van Kampen Funds Inc. - Van Kampen Investor Services Inc. - Morgan Stanley Investment Management Inc. - Morgan Stanley Trust Company - Morgan Stanley Investment Management Ltd. - Morgan Stanley Investment Management Company - Morgan Stanley Asset & Investment Trust Management Company Ltd. (e)(2) Beginning with non-audit service contracts entered into on or after May 6, 2003, the audit committee also is required to pre-approve services to Covered Entities to the extent that the services are determined to have a direct impact on the operations or financial reporting of the Registrant. 100% of such services were pre-approved by the audit committee pursuant to the Audit Committee's pre-approval policies and procedures (included herein). (f) Not applicable. (g) See table above. (h) The audit committee of the Board of Trustees has considered whether the provision of services other than audit services performed by the auditors to the Registrant and Covered Entities is compatible with maintaining the auditors' independence in performing audit services. Item 5. Audit Committee of Listed Registrants. (a) The Trust has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act whose members are: R. Craig Kennedy, Jerry Choate and Rod Dammeyer. (b) Not applicable. Item 6. Schedule of Investments. Please refer to Item #1. Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. The Trust invests in exclusively non-voting securities and therefore this item is not applicable to the Trust. Item 8. Portfolio Managers of Closed-End Management Investment Companies. VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST (VMO) FUND MANAGEMENT PORTFOLIO MANAGEMENT. As of the date of this report, the Fund is managed by members of the Municipals team. The team consists of portfolio managers and analysts. Current members of the team jointly and primarily responsible for the day-to-day management of the Fund's portfolio and the overall execution of the strategy of the Fund are William Black, an Executive Director of the Adviser, Mark Paris, an Executive Director of the Adviser, Robert W. Wimmel, an Executive Director of the Adviser and Wayne D. Godlin, a Managing Director of the Adviser. Mr. Black has been associated with the Adviser as a High Yield Municipal Analyst since June 1998 and began managing the Fund in December 2007. Mr. Paris has been associated with the Adviser as a Municipal Trader since August 2002 and began managing the Fund in December 2007. Mr. Wimmel has been associated with the Adviser in an investment management capacity since August 1996 and began managing the Fund in November 2001. Mr. Godlin has been associated with the Adviser in an investment management capacity since May 1988 and began managing the Fund in December 2007. The composition of the team may change from time to time. OTHER ACCOUNTS MANAGED BY THE PORTFOLIO MANAGERS As of October 31, 2007: Mr. Wimmel managed 15 registered investment companies with a total of approximately $8.4 billion in assets; no pooled investment vehicles other than registered investment companies; and no other accounts. Mr. Godlin managed 5 registered investment companies with a total of approximately $6.3 billion in assets; no pooled investment vehicles other than registered investment companies; and no other accounts. As of December 19, 2007: Mr. Black managed 12 registered investment companies with a total of approximately $11.2 billion in assets; no pooled investment vehicles other than registered investment companies; and no other accounts. Mr. Paris managed 14 registered investment companies with a total of approximately $11.4 billion in assets; no pooled investment vehicles other than registered investment companies; and no other accounts. Because the portfolio managers manage assets for other investment companies, pooled investment vehicles, and/or other accounts (including institutional clients, pension plans and certain high net worth individuals), there may be an incentive to favor one client over another resulting in conflicts of interest. For instance, the Adviser may receive fees from certain accounts that are higher than the fee it receives from the Fund, or it may receive a performance-based fee on certain accounts. In those instances, the portfolio managers may have an incentive to favor the higher and/or performance-based fee accounts over the Fund. The portfolio managers of the Fund do not currently manage accounts for other investment companies, pooled investment vehicles or other accounts that charge a performance-based fee. In addition, a conflict of interest could exist to the extent the Adviser has proprietary investments in certain accounts, where portfolio managers have personal investments in certain accounts or when certain accounts are investment options in the Adviser's employee benefits and/or deferred compensation plans. The portfolio manager may have an incentive to favor these accounts over others. If the Adviser manages accounts that engage in short sales of securities of the type in which the Fund invests, the Adviser could be seen as harming the performance of the Fund for the benefit of the accounts engaged in short sales if the short sales cause the market value of the securities to fall. The Adviser has adopted trade allocation and other policies and procedures that it believes are reasonably designed to address these and other conflicts of interest. PORTFOLIO MANAGER COMPENSATION STRUCTURE Portfolio managers receive a combination of base compensation and discretionary compensation, comprised of a cash bonus and several deferred compensation programs described below. The methodology used to determine portfolio manager compensation is applied across all accounts managed by the portfolio manager. BASE SALARY COMPENSATION. Generally, portfolio managers receive base salary compensation based on the level of their position with the Adviser. DISCRETIONARY COMPENSATION. In addition to base compensation, portfolio managers may receive discretionary compensation. Discretionary compensation can include: - - Cash Bonus; - - Morgan Stanley's Long-Term Incentive Compensation Program awards -- a mandatory program that defers a portion of discretionary year-end compensation into restricted stock units or other awards or other investments based on Morgan Stanley common stock that are subject to vesting and other conditions; - - Investment Management Alignment Plan (IMAP) awards -- a mandatory program that defers a portion of discretionary year-end compensation and notionally invests it in designated funds advised by the Adviser or its affiliates. The award is subject to vesting and other conditions. Portfolio managers must notionally invest a minimum of 25% to a maximum of 100% of the IMAP deferral into a combination of the designated open-end funds they manage that are included in the IMAP Fund menu; - - Voluntary Deferred Compensation Plans -- voluntary programs that permit certain employees to elect to defer a portion of their discretionary year-end compensation and directly or notionally invest the deferred amount: (1) across a range of designated investment funds, including funds advised by the Adviser or its affiliates; and/or (2) in Morgan Stanley stock units. Several factors determine discretionary compensation, which can vary by portfolio management team and circumstances. In order of relative importance, these factors include: - - Investment performance. A portfolio manager's compensation is linked to the pre-tax investment performance of the funds/accounts managed by the portfolio manager. Investment performance is calculated for one-, three- and five-year periods measured against an appropriate securities market index (or indices) for the funds/accounts managed by the portfolio manager. The assets managed by the portfolio managers in funds, pooled investment vehicles and other accounts are described in "Other Accounts Managed by the Portfolio Managers" above. Generally, the greatest weight is placed on the three- and five-year periods. - - Revenues generated by the investment companies, pooled investment vehicles and other accounts managed by the portfolio manager. - - Contribution to the business objectives of the Adviser. - - The dollar amount of assets managed by the portfolio manager. - - Market compensation survey research by independent third parties. - - Other qualitative factors, such as contributions to client objectives. - - Performance of Morgan Stanley and Morgan Stanley Investment Management Inc., and the overall performance of the investment team(s) of which the portfolio is a member. SECURITIES OWNERSHIP OF PORTFOLIO MANAGERS As of October 31, 2007, the portfolio managers did not own any shares of the Fund. Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
TOTAL NUMBER OF MAXIMUM NUMBER SHARES PURCHASED AS OF SHARES THAT MAY PART OF PUBLICLY YET BE PURCHASED TOTAL NUMBER OF AVERAGE PRICE ANNOUNCED PLANS UNDER THE PLANS OR PERIOD* SHARES PURCHASED PAID PER SHARE OR PROGRAMS PROGRAMS - ------- ---------------- -------------- ------------------- ------------------ November -- -- -- -- December -- -- -- -- January -- -- -- -- February -- -- -- 3,417,254 March 37,300 15.61 37,300 3,379,954 April 6,700 15.59 6,700 3,373,254 May -- -- -- 3,373,254 June -- -- -- 3,373,254 July 39,100 14.64 39,100 3,334,154 August 44,300 14.26 44,300 3,289,854 September 23,600 14.54 23,600 3,266,254 October 64,300 14.44 64,300 3,201,954
* The Share Repurchase Program commenced on 2/28/2007. The Trust expects to continue to repurchase its outstanding shares at such time and in such amounts as it believes will further the accomplishment of the foregoing objectives, subject to review by the Board of Trustees. Item 10. Submission of Matters to a Vote of Security Holders. Not Applicable. Item 11. 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 second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 12. Exhibits. (1) The Code of Ethics for Principal Executive and Senior Financial Officers is attached hereto. (2)(a) A certification for the Principal Executive Officer of the registrant is attached hereto as part of EX-99.CERT. (2)(b) A certification for the Principal Financial Officer of the registrant is attached hereto as part of EX-99.CERT. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Van Kampen Municipal Opportunity Trust By: /s/ Ronald E. Robison --------------------------------- Name: Ronald E. Robison Title: Principal Executive Officer Date: December 20, 2007 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Ronald E. Robison --------------------------------- Name: Ronald E. Robison Title: Principal Executive Officer Date: December 20, 2007 By: /s/ Stuart N. Schuldt --------------------------------- Name: Stuart N. Schuldt Title: Principal Financial Officer Date: December 20, 2007 EX-99.CODE 2 c21517exv99wcode.txt CODE OF ETHICS CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND SENIOR FINANCIAL OFFICERS ADOPTED JULY 23, 2003, AS AMENDED AUGUST 10, 2005, SEPTEMBER 22, 2005 AND SEPTEMBER 22, 2006 I. This Code of Ethics (the "Code") for the investment companies within the Van Kampen complex identified in Exhibit A (collectively, "Funds" and each, a "Fund") applies to each Fund's Principal Executive Officer, President, Principal Financial Officer and Treasurer (or persons performing similar functions) ("Covered Officers" each of whom are set forth in Exhibit B) for the purpose of promoting: - honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships. - full, fair, accurate, timely and understandable disclosure in reports and documents that a company files with, or submits to, the Securities and Exchange Commission ("SEC") and in other public communications made by the Fund; - compliance with applicable laws and governmental rules and regulations; - prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and - accountability for adherence to the Code. Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest. Any question about the application of the Code should be referred to the General Counsel or his/her designee (who is set forth in Exhibit C). II. COVERED OFFICERS SHOULD HANDLE ETHICALLY ACTUAL AND APPARENT CONFLICTS OF INTEREST OVERVIEW. A "conflict of interest" occurs when a Covered Officer's private interest interferes, or appears to interfere, with the interests of, or his service to, the Fund. For example, a conflict of interest would arise if a Covered Officer, or a member of his family, receives improper personal benefits as a result of his position with the Fund. Certain conflicts of interest arise out of the relationships between Covered Officers and the Fund and already are subject to conflict of interest provisions in the Investment Company Act of 1940 ("Investment Company Act") and the Investment Advisers Act of 1940 ("Investment Advisers Act"). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the Fund because of their status as "affiliated persons" (as defined in the Investment Company Act) of the Fund. The Fund's and its investment adviser's compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside the parameters of this Code, unless or until the General Counsel determines that any violation of such programs and procedures is also a violation of this Code. Although typically not presenting an opportunity for improper personal benefit, conflicts may arise from, or as a result of, the contractual relationship between the Fund and its investment adviser of which the Covered Officers are also officers or employees. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for the Fund or for the investment adviser, or for both), be involved in establishing policies and implementing decisions that will have different effects on the Fund and its investment adviser. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the Fund and the investment adviser and is consistent with the performance by the Covered Officers of their duties as officers of the Fund. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by the Funds' Boards of Directors/Trustees ("Boards") that the Covered Officers may also be officers or employees of one or more other investment companies covered by this or other codes. Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of the Fund. Each Covered Officer must not: - use his personal influence or personal relationships improperly to influence investment decisions or financial reporting by the Fund whereby the Covered Officer would benefit personally (directly or indirectly); - cause the Fund to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit of the Fund; or - use material non-public knowledge of portfolio transactions made or contemplated for, or actions proposed to be taken by, the Fund to trade personally or cause others to trade personally in contemplation of the market effect of such transactions. Each Covered Officer must, at the time of signing this Code, report to the General Counsel all affiliations or significant business relationships outside the Morgan Stanley complex and must update the report annually. Conflict of interest situations should always be approved by the General Counsel and communicated to the relevant Fund or Fund's Board. Any activity or relationship that would present such a conflict for a Covered Officer would likely also present a conflict for the Covered Officer if an immediate member of the Covered Officer's family living in the same household engages in such an activity or has such a relationship. Examples of these include: - service or significant business relationships as a director on the board of any public or private company; - accepting directly or indirectly, anything of value, including gifts and gratuities in excess of $100 per year from any person or entity with which the Fund has current or prospective business dealings, not including occasional meals or tickets for theatre or sporting events or other similar entertainment; provided it is business-related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety; - any ownership interest in, or any consulting or employment relationship with, any of the Fund's service providers, other than its investment adviser, principal underwriter, or any affiliated person thereof; and - a direct or indirect financial interest in commissions, transaction charges or spreads paid by the Fund for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer's employment, such as compensation or equity ownership. III. DISCLOSURE AND COMPLIANCE - Each Covered Officer should familiarize himself/herself with the disclosure and compliance requirements generally applicable to the Funds; - each Covered Officer must not knowingly misrepresent, or cause others to misrepresent, facts about the Fund to others, whether within or outside the Fund, including to the Fund's Directors/Trustees and auditors, or to governmental regulators and self-regulatory organizations; - each Covered Officer should, to the extent appropriate within his area of responsibility, consult with other officers and employees of the Funds and their investment advisers with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Funds file with, or submit to, the SEC and in other public communications made by the Funds; and - it is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations. IV. REPORTING AND ACCOUNTABILITY Each Covered Officer must: - upon adoption of the Code (thereafter as applicable, upon becoming a Covered Officer), affirm in writing to the Boards that he has received, read and understands the Code; - annually thereafter affirm to the Boards that he has complied with the requirements of the Code; - not retaliate against any other Covered Officer, other officer or any employee of the Funds or their affiliated persons for reports of potential violations that are made in good faith; and - notify the General Counsel promptly if he/she knows or suspects of any violation of this Code. Failure to do so is itself a violation of this Code. The General Counsel is responsible for applying this Code to specific situations in which questions are presented under it and has the authority to interpret this Code in any particular situation. However, any waivers(3) sought by a Covered Officer must be considered by the Board of the relevant Fund or Funds. The Funds will follow these procedures in investigating and enforcing this Code: - the General Counsel will take all appropriate action to investigate any potential violations reported to him; - if, after such investigation, the General Counsel believes that no violation has occurred, the General Counsel is not required to take any further action; - any matter that the General Counsel believes is a violation will be reported to the relevant Fund's Audit Committee; - if the directors/trustees/managing general partners who are not "interested persons" as defined by the Investment Company Act (the "Independent Directors/Trustees/Managing General Partners") of the relevant Fund concur that a violation has occurred, they will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of the investment adviser or its board; or a recommendation to dismiss the Covered Officer or other appropriate disciplinary actions; - the Independent Directors/Trustees/Managing General Partners of the relevant Fund will be responsible for granting waivers of this Code, as appropriate; and - any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules. V. OTHER POLICIES AND PROCEDURES This Code shall be the sole code of ethics adopted by the Funds for purposes of Section 406 of the Sarbanes-Oxley Act of 2002 and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the Funds, the Funds' investment advisers, principal underwriters, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code unless any provision of this Code conflicts with any applicable federal or state law, in which case the requirements of such law will govern. The Funds' and their investment advisers' and principal underwriters' codes of ethics under Rule 17j-1 under the Investment Company Act and Morgan Stanley's Code of Ethics are separate requirements applying to the Covered Officers and others, and are not part of this Code. VI. AMENDMENTS Any amendments to this Code, other than amendments to Exhibits A, B or C, must be approved or ratified by a majority vote of the Board of each Fund, including a majority of Independent Directors/Trustees/Managing General Partners. VII. CONFIDENTIALITY - ---------- (3) Item 2 of Form N-CSR defines "waiver" as "the approval by the registrant of a material departure from a provision of the code of ethics." All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Independent Directors/Trustees/Managing General Partners of the relevant Fund or Funds and their counsel, the relevant Fund or Funds and their counsel and the relevant investment adviser and its counsel. VIII. INTERNAL USE The Code is intended solely for the internal use by the Funds and does not constitute an admission, by or on behalf of any Fund, as to any fact, circumstance, or legal conclusion I have read and understand the terms of the above Code. I recognize the responsibilities and obligations incurred by me as a result of my being subject to the Code. I hereby agree to abide by the above Code. - -------------------------- Date: -------------------- EXHIBIT B COVERED OFFICERS Ronald E. Robison - President and Principal Executive Officer Stuart N. Schuldt - Chief Financial Officer and Treasurer EXHIBIT B (PRIOR TO JUNE 4, 2007) COVERED OFFICERS Ronald E. Robison - President and Principal Executive Officer James Garrett - Chief Financial Officer and Treasurer EXHIBIT B (PRIOR TO NOVEMBER 15, 2006) COVERED OFFICERS Ronald E. Robison - President and Principal Executive Officer Phillip G. Goff - Chief Financial Officer and Treasurer EXHIBIT C GENERAL COUNSEL'S DESIGNEE Arthur Lev EXHIBIT C (PRIOR TO DECEMBER 1, 2006) GENERAL COUNSEL'S DESIGNEE Barry Fink EXHIBIT C (PRIOR TO OCTOBER 1, 2006) GENERAL COUNSEL'S DESIGNEE Amy Doberman EX-99.CERT 3 c21517exv99wcert.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) and internal control over financial reporting (as defined in Rule30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting. Date: December 20, 2007 /s/ Ronald E. Robison ---------------------------------------- Principal Executive Officer I, Stuart N. Schuldt, certify that: 1. I have reviewed this report on Form N-CSR of Van Kampen 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) and internal control over financial reporting (as defined in Rule30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting. Date: December 20, 2007 /s/ Stuart N. Schuldt ---------------------------------------- Principal Financial Officer EX-99.906CERT 4 c21517exv99w906cert.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 October 31, 2007 that is accompanied by this certification, the undersigned hereby certifies that: 1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Issuer. Date: December 20, 2007 /s/ Ronald E. Robison ---------------------------------------- Ronald E. Robison Principal Executive Officer A signed original of this written statement required by Section 906 has been provided to Van Kampen 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 October 31, 2007 that is accompanied by this certification, the undersigned hereby certifies that: 1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Issuer. Date: December 20, 2007 /s/ Stuart N. Schuldt ---------------------------------------- Stuart N. Schuldt Principal Financial Officer A signed original of this written statement required by Section 906 has been provided to Van Kampen 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-----