-----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, Bfm78id5YtComVAO+i0Vm7fcYFibdywgWq3/0kQnkGh0RmMAJ/IEPKjqYCcsY7TE iNq6HWqEY6AAzPNRoMKYUw== 0000950137-04-005315.txt : 20040629 0000950137-04-005315.hdr.sgml : 20040629 20040629132529 ACCESSION NUMBER: 0000950137-04-005315 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040430 FILED AS OF DATE: 20040629 EFFECTIVENESS DATE: 20040629 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VAN KAMPEN ADVANTAGE PENNSYLVANIA MUNICIPAL INCOME TRUST CENTRAL INDEX KEY: 0000889518 IRS NUMBER: 367006143 STATE OF INCORPORATION: MA FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-06732 FILM NUMBER: 04887881 BUSINESS ADDRESS: STREET 1: ONE PARKVIEW PLAZA STREET 2: VAN KAMPEN INVESTMENTS INC CITY: OAKBROOK TERRACE STATE: IL ZIP: 60181 BUSINESS PHONE: 6306846774 MAIL ADDRESS: STREET 1: VAN KAMPEN INVESTMENTS INC STREET 2: ONE PARKVIEW PLAZA CITY: OAKBROOK TERRACE STATE: IL ZIP: 60181 FORMER COMPANY: FORMER CONFORMED NAME: VAN KAMPEN AMERICAN CAPITAL ADVANTAGE PENNSYLVANIA DATE OF NAME CHANGE: 19960102 FORMER COMPANY: FORMER CONFORMED NAME: VAN KAMPEN MERRITT ADVANTAGE PENNSYLVANIA MUNICIPAL INC TRUS DATE OF NAME CHANGE: 19920929 N-CSRS 1 c85416nvcsrs.txt SEMIANNUAL REPORT DATED APRIL 30, 2004 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 811-6732 Van Kampen Advantage Pennsylvania Municipal Income Trust - ------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) 1221 Avenue of the Americas, New York, New York 10020 - ------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Ronald Robison 1221 Avenue of the Americas, New York, New York 10020 - ------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 212-762-4000 Date of fiscal year end: 10/31 Date of reporting period: 4/30/04 Item 1. Report to Shareholders. The Trust's semi-annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 is as follows: Welcome, Shareholder In this report, you'll learn about how your investment in Van Kampen Advantage Pennsylvania Municipal Income Trust performed during the semiannual period. The portfolio management team will provide an overview of the market conditions and discuss some of the factors that affected investment performance during the reporting period. In addition, this report includes the trust's financial statements and a list of trust investments as of April 30, 2004. Market forecasts provided in this report may not necessarily come to pass. There is no assurance that the trust will achieve its investment objective. Trusts are subject to market risk, which is the possibility that the market values of securities owned by the trust will decline and that the value of trust shares may therefore be less than what you paid for them. Accordingly, you can lose money investing in this trust. Income may subject certain individuals to the federal Alternative Minimum Tax (AMT).
--------------------------------------------------------------------------------------- NOT FDIC INSURED OFFER NO BANK GUARANTEE MAY LOSE VALUE --------------------------------------------------------------------------------------- NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY NOT A DEPOSIT ---------------------------------------------------------------------------------------
Performance Summary as of 04/30/04
ADVANTAGE PENNSYLVANIA MUNICIPAL INCOME TRUST SYMBOL: VAP - ------------------------------------------------------ AVERAGE ANNUAL BASED ON BASED ON TOTAL RETURNS NAV MARKET PRICE Since Inception (09/25/92) 7.63% 6.48% 10-Year 7.53 7.40 5-year 6.45 5.18 1-Year 2.87 -4.66 6-Month 1.40 -4.79 - ------------------------------------------------------
Past performance is no guarantee of future results. Investment return, net asset value (NAV) and common share market price will fluctuate and trust shares, when sold, may be worth more or less than their original cost. As a result of recent market activity, current performance may vary from the figures shown. For more up-to-date information, please visit vankampen.com or speak with your financial advisor. NAV per share is determined by dividing the value of the trust's portfolio securities, cash and other assets, less all liabilities, by the total number of common shares outstanding. The common share market price is the price the market is willing to pay for shares of the trust at a given time. Common share market price is influenced by a range of factors, including supply and demand and market conditions. Total return assumes an investment at the beginning of the period, reinvestment of all distributions for the period in accordance with the trust's dividend reinvestment plan, and sale of all shares at the end of the period. The Lehman Brothers Pennsylvania Municipal Bond Index is a broad-based statistical composite of Pennsylvania municipal bonds. The index is unmanaged and does not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index. 1 Trust Report FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2004 Van Kampen Advantage Pennsylvania Municipal Income Trust is managed by the adviser's Municipal Fixed Income team.(1) Current members include Dennis Pietrzak, Executive Director; Robert Wimmel, Vice President; and John Reynoldson, Executive Director. MARKET CONDITIONS The state of the U.S. economy remained mixed over the six-month period under review. On the positive side, economic growth continued to be robust, with Gross Domestic Product growth topping 4 percent in both the last quarter of 2003 and, preliminarily, the first quarter of this year. While this strength in output has historically triggered fears of rising interest rates, yields remained stubbornly low across the municipal curve. These low yields were partly the result of the continued low levels of observed inflation in the U.S. economy. Unfortunately, they also reflected continuing weakness in the job market, which remained soft throughout most of the period. The soft job numbers, coupled with persistently low inflation, led the Federal Open Market Committee (the Fed) to maintain its accommodative stance throughout the period. The surprisingly rapid job growth data released in April, coupled with rapidly rising commodity and high oil prices, led many investors to fear that the Fed would be forced to raise interest rates earlier than the market initially expected. As a result, bond yields across all major sectors spiked in April. Supply of new municipal bonds in calendar 2003 hit record levels as municipalities moved to take advantage of historically low interest rates. Many cities and states sought to reduce expenditures by refinancing existing debt and replacing it with lower-yielding bonds. In other cases, municipalities attempted to meet current and future funding needs by issuing new debt. This activity slowed in the first months of 2004. The low interest rates that prevailed over much of the period also had an impact on the demand for municipal bonds. Retail and institutional investor activity slowed as holders of municipal bonds saw little reason to sell bonds purchased at higher yield levels and reinvest at lower yields. However, the period was marked by rising activity among non-traditional investors, such as hedge funds and insurance companies seeking to take advantage of the attractiveness of municipal bonds relative to some taxable securities. Additionally, investors' search for yield led to significant outperformance by lower-rated bonds with greater credit risk. Sectors such as health care, with a preponderance of lower-rated issues, performed particularly well. (1) Team members may change without notice at any time. 2 While other states suffered during the period, Pennsylvania's economy remained strong thanks to its ongoing tradition of fiscal discipline. The bulk of the state's issuance continued to be in the education sector, which has over time tended to be active in its issuance of new as well as refunded debt. The weakest segment of the state economy was Pittsburgh, which was downgraded from investment grade to BB/Ba because of revenue shortfalls. PERFORMANCE ANALYSIS Closed-end fund returns can be calculated based upon either the market price or the net asset value (NAV) of its shares. NAV per share is determined by dividing the value of the trust's portfolio securities, cash and other assets, less all liabilities, by the total number of common shares outstanding, while market price reflects the supply and demand for the shares. As a result, the two returns can differ significantly. On an NAV basis, the trust outperformed its benchmark, the Lehman Brothers Pennsylvania Municipal Bond Index, but underperformed on a market-price basis. (See table below.) The trust uses leverage to enhance its dividend to common shareholders. The trust borrows money at short-term rates through the issuance of preferred shares. The proceeds are typically reinvested in longer-term securities, taking advantage of the difference between short- and longer-term rates. With short- term rates at historic lows for much of the period, the difference between short-and longer-term rates was relatively high. This made using leverage a particularly profitable approach in the early months of the period, and added to the trust's returns. As yields rose toward the end of the period, the prices of bonds declined. The trust's use of leverage magnified this negative movement. However, the portfolio saw strong relative performance from its higher-yielding holdings during the period, which counterbalanced the effects of the leverage and helped produce a total return on an NAV basis higher than that of the benchmark, which is not leveraged. The trust's performance was also modestly hampered by its bias, relative to the benchmark, toward high-quality securities. Municipal bond investors during the period responded to the improving economy by reducing the yield spreads between higher and lower-rated bonds (yield spreads reflect the premium TOTAL RETURN FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2004
- ---------------------------------------------------------- LEHMAN BROTHERS BASED ON BASED ON PENNSYLVANIA NAV MARKET PRICE MUNICIPAL BOND INDEX 1.40% -4.79% 1.13% - ----------------------------------------------------------
Past performance is no guarantee of future results. Investment return, net asset value and common share market price will fluctuate and trust shares, when sold, may be worth more or less than their original cost. See Performance Summary for additional performance information and index definition. 3 demanded by investors to buy lower-rated bonds). As a result, lower-quality bonds outperformed. The portfolio had approximately 86 percent exposure to bonds rated AA/Aa or higher at the end of the period. One of our key strategies in managing the trust was to adjust the portfolio's term structure in anticipation of rising interest rates. Our research showed that the intermediate portion of the curve offered the most promising total-return potential. As a result, we focused our purchases on the 15- to 20-year segment of the curve. Many of the securities we identified had the added appeal of premium coupons and 10-year call dates, which served to add income to the portfolio while limiting its interest-rate exposure. The trust's trading activity during the period was below traditional norms because we wanted to avoid having to reinvest into securities with low yields. That said, we were able to make selective relative-value trades among securities and sectors as they moved into and out of fair value. Some of these acquisitions were funded by the proceeds of housing bonds that were called away by their issuers during the period. In other cases we sold bonds that met their performance objectives during the period. We reinvested this cash into securities with more promising total-return characteristics. The trust's portfolio remained well diversified during the period, with its holdings spread across all major municipal bond sectors. This long-standing strategy helps to minimize the risk of over-concentration in any single sector, while also giving the portfolio exposure to as many potential sources of return as possible. The three largest sector exposures at the end of the period were water and sewer, public education and higher education. Looking ahead, it is impossible to predict whether interest rates will continue to trend upward, but we believe that the trust is well positioned to weather further increases in interest rates. We look forward to becoming more active in seeking attractive structures and relative-value trading opportunities now that rates have moved into a more normal range. TOP 5 SECTORS AS OF 4/30/04 RATINGS ALLOCATION AS OF 4/30/04 Water & Sewer 17.9% AAA/Aaa 72.8% Public Education 17.2 AA/Aa 12.9 Higher Education 15.9 A/A 8.4 Health Care 13.2 BBB/Baa 5.9 General Purpose 10.0
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. All percentages are as a percentage of long-term investments. Securities are classified by sectors that represent broad groupings of related industries. Ratings allocations based upon ratings as issued by Standard and Poor's and Moody's. Van Kampen is a wholly owned subsidiary of a global securities firm which is engaged in a wide range of financial services including, for example, securities trading and brokerage activities, investment banking, research and analysis, financing and financial advisory services. 4 PROXY VOTING POLICIES AND PROCEDURES A description of the trust's policies and procedures with respect to the voting of proxies relating to the trust's portfolio securities is available without charge, upon request, by calling 1-800-847-2424. This information is also available on the Securities and Exchange Commission's website at http://www.sec.gov. 5 VAN KAMPEN ADVANTAGE PENNSYLVANIA MUNICIPAL INCOME TRUST PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED)
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - ------------------------------------------------------------------------------------------- MUNICIPAL BONDS 153.9% PENNSYLVANIA 152.4% $1,000 Allegheny Cnty, PA Higher Ed Bldg Carnegie Mellon Univ..................................... 5.125% 03/01/32 $ 1,004,930 1,500 Allegheny Cnty, PA Higher Ed Bldg Carnegie Mellon Univ..................................... 5.250 03/01/32 1,519,395 3,250 Allegheny Cnty, PA Hosp Dev Auth Rev Hlth Cent Dev Inc Proj Rfdg (MBIA Insd)................... 6.300 09/01/13 3,294,265 905 Allegheny Cnty, PA Residential Mtg Single Family Ser KK-2 (AMT) (GNMA Collateralized)............ 5.750 05/01/33 926,005 1,000 Allegheny Cnty, PA San Auth Swr (MBIA Insd)..... 5.750 12/01/13 1,121,810 1,830 Allegheny Cnty, PA San Auth Swr (MBIA Insd)..... 5.750 12/01/18 2,039,553 2,000 Allegheny Cnty, PA San Auth Swr Rev (MBIA Insd)........................................... 5.500 12/01/24 2,116,600 2,640 Bensalem Twp, PA Sch Dist (FGIC Insd)........... 5.000 08/15/18 2,749,824 1,150 Bucks Cnty, PA Wtr & Swr Rev Neshaminy Interceptor Ser A (AMBAC Insd).................. 5.375 06/01/14 1,251,844 1,215 Bucks Cnty, PA Wtr & Swr Rev Neshaminy Interceptor Ser A (AMBAC Insd).................. 5.375 06/01/15 1,315,250 870 Carbon Cnty, PA Indl Dev Auth Panther Creek Partn Proj Rfdg (AMT) (LOC: Paribas & Union Bk of CA Intl)..................................... 6.650 05/01/10 937,956 1,500 Central Dauphin, PA Sch Dist (FSA Insd) (a)..... 5.000 12/01/19 1,564,545 1,115 Chichester Sch Dist PA (FGIC Insd).............. * 03/01/19 548,056 5,000 Dauphin Cnty, PA Genl Auth Hosp Rev Hapsco Western PA Hosp Proj B Rfdg (Escrowed to Maturity) (MBIA Insd)........................... 6.250 07/01/16 5,817,300 1,000 Delaware Cnty, PA Auth College Neumann College Rfdg............................................ 6.000 10/01/31 1,012,820 1,000 Delaware Cnty, PA Cap Apprec Rfdg............... * 11/15/10 779,870 1,045 Delaware Cnty, PA Cap Apprec Rfdg............... * 11/15/11 768,326 1,225 Delaware Cnty, PA Cap Apprec Rfdg............... * 11/15/12 848,055 1,500 Delaware Vly, PA Regl Fin Auth.................. 5.750 07/01/17 1,695,060 2,735 Exeter Twp, PA Sch Dist (FGIC Insd)............. 5.000 05/15/25 2,760,764 2,000 Greater Latrobe, PA Sch Auth (FGIC Insd)........ 5.250 04/01/17 2,126,180 1,500 Harrisburg, PA Res Gtd Sub Ser D 2 (FSA Insd)... 5.000 12/01/33 1,593,360 1,000 Lycoming Cnty, PA Auth College Rev PA College of Technology (AMBAC Insd)......................... 5.350 07/01/26 1,030,600 1,095 Mars, PA Area Sch Dist Ser AA (MBIA Insd)....... * 09/01/19 525,490 1,095 Mars, PA Area Sch Dist Ser AA (MBIA Insd)....... * 09/01/20 492,213 1,095 Mars, PA Area Sch Dist Ser AA (MBIA Insd)....... * 09/01/21 459,287 2,500 Mercer Cnty, PA Indl Dev Auth Wtr Facs Philadelphia Sub Corp (AMT) (MBIA Insd)......... 6.000 07/01/30 2,660,425 1,000 Monroe Cnty, PA Hosp Auth Rev Hosp Pocono Med Ctr............................................. 6.000 01/01/43 1,020,330 1,205 Monroeville, PA Muni Auth San Ser B (MBIA Insd)........................................... 5.250 12/01/18 1,277,445 1,350 Monroeville, PA Muni Auth San Ser B (MBIA Insd)........................................... 5.250 12/01/20 1,428,786
6 See Notes to Financial Statements VAN KAMPEN ADVANTAGE PENNSYLVANIA MUNICIPAL INCOME TRUST PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - ------------------------------------------------------------------------------------------- PENNSYLVANIA (CONTINUED) $1,500 Montgomery Cnty, PA Higher Ed & Hlth Auth Hosp Rev Abington Mem Hosp Ser A..................... 5.125% 06/01/32 $ 1,466,295 1,000 Montgomery Cnty, PA Indl Dev Auth Retirement Cmnty Rev Adult Cmntys Total Svcs Ser B......... 5.625 11/15/12 1,045,070 1,000 Montgomery Cnty, PA Indl Dev Auth Rev Res Rec Montenay Proj Ser A (MBIA Insd)................. 5.250 11/01/14 1,093,320 1,000 Pennsylvania Hsg Fin Agy Single Family Mtg Ser 53A (AMT)....................................... 6.000 10/01/15 1,037,560 2,450 Pennsylvania Hsg Fin Agy Single Family Mtg Ser 66A (AMT)....................................... 5.650 04/01/29 2,489,004 2,000 Pennsylvania St Higher Ed Fac Auth Rev Drexel Univ............................................ 5.500 05/01/17 2,126,220 1,000 Pennsylvania St Higher Ed Fac Auth Rev La Salle Univ............................................ 5.500 05/01/34 1,004,370 1,000 Pennsylvania St Higher Ed Fac Auth Rev Thomas Jefferson....................................... 5.375 01/01/25 1,029,240 1,500 Pennsylvania St Higher Ed Fac Clarion Univ Fndtn Inc Ser A (XLCA Insd)........................... 5.250 07/01/18 1,585,395 1,500 Pennsylvania St Higher Ed Fac Clarion Univ Fndtn Inc Ser A (XLCA Insd)........................... 5.000 07/01/33 1,482,870 1,000 Pennsylvania St Higher Ed Fac Messiah College Ser AA3 (Radian Insd)........................... 5.500 11/01/22 1,037,840 1,560 Pennsylvania St Higher Ed Fac Philadelphia College Osteopathic Med......................... 5.000 12/01/16 1,609,202 1,850 Pennsylvania St Higher Ed UPMC Hlth Sys Ser A... 6.000 01/15/31 1,943,444 3,015 Pennsylvania St Tpk Commn Ser T Rfdg (FGIC Insd)........................................... 5.500 12/01/10 3,388,920 1,970 Pennsylvania St Univ Rfdg....................... 5.250 03/01/18 2,108,491 1,500 Philadelphia, PA (FSA Insd)..................... 5.250 09/15/25 1,535,070 1,005 Philadelphia, PA Auth Indl Dev Amern College Of Physicians...................................... 5.500 06/15/27 1,028,929 2,500 Philadelphia, PA Auth Indl Dev Philadelphia Arpt Sys Proj Ser A (AMT) (FGIC Insd)................ 5.250 07/01/28 2,523,450 4,250 Philadelphia, PA Gas Wks Rev 12th Ser B (Escrowed to Maturity) (MBIA Insd).............. 7.000 05/15/20 5,194,903 4,200 Philadelphia, PA Wtr & Swr Rev Cap Apprec 14th Ser (MBIA Insd)................................. * 10/01/07 3,835,860 5,000 Pittsburgh & Allegheny Cnty, PA Pub Aud Regl Asset Dist Sales Tax (AMBAC Insd)............... 5.000 02/01/24 5,039,650 2,500 Pittsburgh, PA Ser A (AMBAC Insd)............... 5.500 09/01/17 2,662,550 2,000 Pittsburgh, PA Ser A (Prerefunded @ 09/01/09) (FGIC Insd)..................................... 5.750 09/01/21 2,250,460 2,000 Pittsburgh, PA Wtr & Swr Rfdg (FGIC Insd)....... 6.500 09/01/13 2,363,820 1,000 Southcentral, PA Gen Auth Rev Wellspan Hlth Oblig (MBIA Insd)............................... 5.375 05/15/28 1,029,290
See Notes to Financial Statements 7 VAN KAMPEN ADVANTAGE PENNSYLVANIA MUNICIPAL INCOME TRUST PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - ------------------------------------------------------------------------------------------- PENNSYLVANIA (CONTINUED) $1,905 State Pub Sch Bldg Auth PA Conneaut Sch Dist Proj (FGIC Insd)................................ 5.250% 11/01/18 $ 2,047,265 1,205 State Pub Sch Bldg Auth PA Sch Tuscarora Sch Dist Proj (FSA Insd)............................ 5.250 04/01/20 1,277,565 1,270 State Pub Sch Bldg Auth PA Sch Tuscarora Sch Dist Proj (FSA Insd)............................ 5.250 04/01/21 1,341,679 1,500 Susquehanna Area Regl Arpt Auth PA Arpt Ser D... 5.375 01/01/18 1,477,785 1,850 Trinity Area Sch Dist PA (FGIC Insd)............ 5.250 11/01/20 1,967,364 535 Unity Twp, PA Muni Auth Gtd Swr Cap Apprec (AMBAC Insd).................................... * 11/01/14 342,036 1,075 Wilson, PA Sch Dist Second Ser (FSA Insd)....... 5.375 05/15/16 1,160,119 1,100 York Cnty, PA (AMBAC Insd)...................... 5.000 06/01/20 1,137,697 ------------ 109,349,077 ------------ U. S. VIRGIN ISLANDS 1.5% 1,000 Virgin Islands Pub Fin Auth Rev Gross Rcpt Taxes Ln Nt Ser A (ACA Insd).......................... 6.125 10/01/29 1,070,410 ------------ TOTAL LONG-TERM INVESTMENTS 153.9% (Cost $104,027,234)....................................................... 110,419,487 SHORT-TERM INVESTMENT 1.9% (Cost $1,400,000)......................................................... 1,400,000 ------------ TOTAL INVESTMENTS 155.8% (Cost $105,427,234)....................................................... 111,819,487 LIABILITIES IN EXCESS OF OTHER ASSETS (0.1%)............................... (43,305) PREFERRED SHARES (INCLUDING ACCRUED DISTRIBUTIONS) (55.7%)................. (40,009,189) ------------ NET ASSETS APPLICABLE TO COMMON SHARES 100.0%.............................. $ 71,766,993 ============
* Zero coupon bond (a) Security purchased on a when-issued or delayed delivery basis. ACA--American Capital Access AMBAC--AMBAC Indemnity Corp. AMT--Alternative Minimum Tax FGIC--Financial Guaranty Insurance Co. FSA--Financial Security Assurance Inc. GNMA--Government National Mortgage Association LOC--Letter of Credit MBIA--Municipal Bond Investors Assurance Corp. Radian--Radian Asset Assurance XLCA--XL Capital Assurance Inc. 8 See Notes to Financial Statements VAN KAMPEN ADVANTAGE PENNSYLVANIA MUNICIPAL INCOME TRUST FINANCIAL STATEMENTS Statement of Assets and Liabilities April 30, 2004 (Unaudited) ASSETS: Total Investments (Cost $105,427,234)....................... $111,819,487 Cash........................................................ 54,509 Receivables: Interest.................................................. 1,712,052 Investments Sold.......................................... 85,000 Other....................................................... 673 ------------ Total Assets............................................ 113,671,721 ------------ LIABILITIES: Payables: Investments Purchased..................................... 1,567,315 Investment Advisory Fee................................... 55,731 Income Distributions--Common Shares....................... 22,068 Other Affiliates.......................................... 7,092 Administrative Fee........................................ 4,644 Trustees' Deferred Compensation and Retirement Plans........ 194,798 Accrued Expenses............................................ 43,891 ------------ Total Liabilities....................................... 1,895,539 Preferred Shares (including accrued distributions).......... 40,009,189 ------------ NET ASSETS APPLICABLE TO COMMON SHARES...................... $ 71,766,993 ============ NET ASSET VALUE PER COMMON SHARE ($71,766,993 divided by 4,368,552 shares outstanding)............................. $ 16.43 ============ NET ASSETS CONSIST OF: Common Shares ($.01 par value with an unlimited number of shares authorized, 4,368,552 shares issued and outstanding).............................................. $ 43,686 Paid in Surplus............................................. 64,236,073 Net Unrealized Appreciation................................. 6,392,253 Accumulated Net Realized Gain............................... 656,862 Accumulated Undistributed Net Investment Income............. 438,119 ------------ NET ASSETS APPLICABLE TO COMMON SHARES...................... $ 71,766,993 ============ PREFERRED SHARES ($.01 par value, authorized 100,000,000 shares, 1,600 issued with liquidation preference of $25,000 per share)........................................ $ 40,000,000 ============ NET ASSETS INCLUDING PREFERRED SHARES....................... $111,766,993 ============
See Notes to Financial Statements 9 VAN KAMPEN ADVANTAGE PENNSYLVANIA MUNICIPAL INCOME TRUST FINANCIAL STATEMENTS continued Statement of Operations For the Six Months Ended April 30, 2004 (Unaudited) INVESTMENT INCOME: Interest.................................................... $ 2,818,985 ----------- EXPENSES: Investment Advisory Fee..................................... 344,088 Preferred Share Maintenance................................. 57,277 Trustees' Fees and Related Expenses......................... 37,893 Administrative Fee.......................................... 28,673 Legal....................................................... 9,604 Custody..................................................... 4,016 Other....................................................... 65,944 ----------- Total Expenses.......................................... 547,495 ----------- NET INVESTMENT INCOME....................................... $ 2,271,490 =========== REALIZED AND UNREALIZED GAIN/LOSS: Net Realized Gain........................................... $ 656,930 ----------- Unrealized Appreciation/Depreciation: Beginning of the Period................................... 8,168,124 End of the Period......................................... 6,392,253 ----------- Net Unrealized Depreciation During the Period............... (1,775,871) ----------- NET REALIZED AND UNREALIZED LOSS............................ $(1,118,941) =========== DISTRIBUTIONS TO PREFERRED SHAREHOLDERS..................... $ (218,592) =========== NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM OPERATIONS................................................ $ 933,957 ===========
10 See Notes to Financial Statements VAN KAMPEN ADVANTAGE PENNSYLVANIA MUNICIPAL INCOME TRUST FINANCIAL STATEMENTS continued Statements of Changes in Net Assets (Unaudited)
FOR THE FOR THE SIX MONTHS ENDED YEAR ENDED APRIL 30, 2004 OCTOBER 31, 2003 ------------------------------------ FROM INVESTMENT ACTIVITIES: Operations: Net Investment Income................................... $ 2,271,490 $ 4,823,820 Net Realized Gain....................................... 656,930 2,009,409 Net Unrealized Depreciation During the Period........... (1,775,871) (1,150,733) Distributions to Preferred Shareholders: Net Investment Income................................. (77,379) (341,199) Net Realized Gain..................................... (141,213) (97,678) ----------- ----------- Change in Net Assets Applicable to Common Shares from Operations............................................ 933,957 5,243,619 Distributions to Common Shareholders: Net Investment Income................................. (2,223,420) (4,748,108) Net Realized Gain..................................... (1,876,119) (887,691) ----------- ----------- NET CHANGE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM INVESTMENT ACTIVITIES............................ (3,165,582) (392,180) NET ASSETS APPLICABLE TO COMMON SHARES: Beginning of the Period................................. 74,932,575 75,324,755 ----------- ----------- End of the Period (Including accumulated undistributed net investment income of $438,119 and $467,428, respectively)......................................... $71,766,993 $74,932,575 =========== ===========
See Notes to Financial Statements 11 VAN KAMPEN ADVANTAGE PENNSYLVANIA MUNICIPAL INCOME TRUST FINANCIAL HIGHLIGHTS (UNAUDITED) THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE TRUST OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
SIX MONTHS ENDED APRIL 30, ------------------- 2004 2003 2002 (e) --------------------------------- NET ASSET VALUE, BEGINNING OF THE PERIOD................... $ 17.15 $ 17.24 $ 17.28 ------- ------- ------- Net Investment Income.................................... .52 1.11 1.19 Net Realized and Unrealized Gain/Loss.................... (.25) .19 .08 Common Share Equivalent of Distributions Paid to Preferred Shareholders: Net Investment Income.................................... (.02) (.08) (.12) Net Realized Gain........................................ (.03) (.02) (.03) ------- ------- ------- Total from Investment Operations........................... .22 1.20 1.12 Distributions Paid to Common Shareholders: Net Investment Income.................................... (.51) (1.09) (1.05) Net Realized Gain........................................ (.43) (.20) (.11) ------- ------- ------- NET ASSET VALUE, END OF THE PERIOD......................... $ 16.43 $ 17.15 $ 17.24 ======= ======= ======= Common Share Market Price at End of the Period............. $ 14.60 $ 16.23 $ 16.45 Total Return (a)........................................... -4.79%* 6.54% 11.96% Net Assets Applicable to Common Shares at End of the Period (In millions)............................................ $ 71.8 $ 74.9 $ 75.3 Ratio of Expenses to Average Net Assets Applicable to Common Shares (b)........................................ 1.46% 1.43% 1.50% Ratio of Net Investment Income to Average Net Assets Applicable to Common Shares (b).......................... 6.06% 6.40% 7.02% Portfolio Turnover......................................... 3%* 31% 19% SUPPLEMENTAL RATIOS: Ratio of Expenses to Average Net Assets Including Preferred Shares (b)............................................... .95% .93% .97% Ratio of Net Investment Income to Average Net Assets Applicable to Common Shares (c).......................... 5.85% 5.95% 6.32% SENIOR SECURITIES: Total Preferred Shares Outstanding......................... 1,600 1,600 1,600 Asset Coverage Per Preferred Share (d)..................... $69,860 $71,846 $72,101 Involuntary Liquidating Preference Per Preferred Share..... $25,000 $25,000 $25,000 Average Market Value Per Preferred Share................... $25,000 $25,000 $25,000
* Non-Annualized (a)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. (b)Ratios do not reflect the effect of dividend payments to preferred shareholders. (c)Ratios reflect the effect of dividend payments to preferred shareholders. (d)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. (e)As required, effective November 1, 2001, the Trust has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on fixed income securities. The effect of this change for the year ended October 31, 2002 was to increase net investment income per share by less than $.01, decrease net realized and unrealized gains and losses per share by less than $.01 and increase the ratio of net investment income to average net assets by .02%. Per share, ratios and supplemental data for periods prior to October 31, 2002 have not been restated to reflect this change in presentation. 12
YEAR ENDED OCTOBER 31, - ---------------------------------------------------------------------------------------- 2001 2000 1999 1998 1997 1996 1995 1994 - ---------------------------------------------------------------------------------------- $ 16.40 $ 16.18 $ 17.66 $ 17.23 $ 16.72 $ 16.69 $ 14.63 $ 17.33 ------- -------- ------- -------- -------- -------- -------- -------- 1.21 1.27 1.24 1.24 1.25 1.24 1.25 1.25 1.15 .28 (1.46) .47 .54 .04 2.06 (2.77) (.25) (.37) (.30) (.32) (.32) (.32) (.36) (.27) (.09) -0- -0- -0- -0- -0- -0- (.01) ------- -------- ------- -------- -------- -------- -------- -------- 2.02 1.18 (.52) 1.39 1.47 .96 2.95 (1.80) (.93) (.96) (.96) (.96) (.96) (.93) (.89) (.88) (.21) -0- -0- -0- -0- -0- -0- (.02) ------- -------- ------- -------- -------- -------- -------- -------- $ 17.28 $ 16.40 $ 16.18 $ 17.66 $ 17.23 $ 16.72 $ 16.69 $ 14.63 ======= ======== ======= ======== ======== ======== ======== ======== $ 15.75 $14.9375 $14.625 $ 17.25 $16.4375 $ 15.125 $ 14.00 $ 12.125 13.31% 9.10% -10.14% 11.03% 15.38% 14.85% 23.03% -19.94% $ 75.4 $ 71.5 $ 70.6 $ 77.0 $ 75.2 $ 72.9 $ 72.8 $ 63.8 1.71% 1.78% 1.69% 1.67% 1.70% 1.77% 1.77% 1.80% 7.12% 7.89% 7.22% 7.11% 7.41% 7.48% 7.96% 7.75% 17% 31% 7% 3% 2% 2% 9% 5% 1.10% 1.13% 1.10% 1.10% 1.10% 1.14% 1.12% 1.15% 5.70% 5.59% 5.45% 5.25% 5.48% 5.52% 5.68% 6.05% 1,600 1,600 1,600 800 800 800 800 800 $72,107 $ 69,704 $69,097 $146,292 $143,968 $141,175 $141,025 $129,764 $25,000 $ 25,000 $25,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $25,000 $ 25,000 $25,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
See Notes to Financial Statements 13 VAN KAMPEN ADVANTAGE PENNSYLVANIA MUNICIPAL INCOME TRUST NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2004 (UNAUDITED) 1. SIGNIFICANT ACCOUNTING POLICIES Van Kampen Advantage Pennsylvania Municipal Income Trust (the "Trust") is registered as a non-diversified, closed-end management investment company under the Investment Company Act of 1940, as amended. The Trust's investment objective is to provide a high level of current income exempt from federal and Pennsylvania income taxes and, where possible under local law, local income and personal property taxes, consistent with preservation of capital. The Trust will invest substantially all of its assets in Pennsylvania municipal securities rated investment grade at the time of investment. The Trust commenced investment operations on September 25, 1992. Effective November 30, 2003, the Trust's investment adviser, Van Kampen Investment Advisory Corp., merged into its affiliate, Van Kampen Asset Management. The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. A. SECURITY VALUATION Municipal bonds are valued by independent pricing services or dealers using the mean of the bid and asked prices or, in the absence of market quotations, at fair value based upon yield data relating to municipal bonds with similar characteristics and general market conditions. Securities which are not valued by independent pricing services or dealers are valued at fair value using procedures established in good faith by the Board of Trustees. Short-term securities with remaining maturities of 60 days or less are valued at amortized cost, which approximates market value. B. SECURITY TRANSACTIONS Security transactions are recorded on a trade date basis. Realized gains and losses are determined on an identified cost basis. The Trust may purchase and sell securities on a "when-issued" or "delayed delivery" basis, with settlement to occur at a later date. The value of the security so purchased is subject to market fluctuations during this period. The Trust will segregate assets with the custodian having an aggregate value at least equal to the amount of the when-issued or delayed delivery purchase commitments until payment is made. At April 30, 2004, the Trust had $1,567,315 of when-issued and delayed delivery purchase commitments. C. INVESTMENT INCOME Interest income is recorded on an accrual basis. Bond premium is amortized and discount is accreted over the expected life of each applicable security. D. FEDERAL INCOME TAXES It is the Trust's policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no provision for federal income taxes is required. 14 VAN KAMPEN ADVANTAGE PENNSYLVANIA MUNICIPAL INCOME TRUST NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2004 (UNAUDITED) continued At April 30, 2004, the cost and related gross unrealized appreciation and depreciation are as follows: Cost of investments for tax purposes........................ $105,326,880 ============ Gross tax unrealized appreciation........................... $ 6,750,139 Gross tax unrealized depreciation........................... (257,532) ------------ Net tax unrealized appreciation on investments.............. $ 6,492,607 ============
E. DISTRIBUTION OF INCOME AND GAINS The Trust declares and pays monthly dividends from net investment income to common shareholders. Net realized gains, if any, are distributed annually on a pro rata basis to common and preferred shareholders. Distributions from net realized gains for book purposes may include short-term capital gains, which are included as ordinary income for tax purposes. The tax character of distributions paid during the year ended October 31, 2003 was as follows:
2003 Distributions paid from: Ordinary income........................................... $ 43,589 Long-term capital gain.................................... 962,055 ---------- $1,055,644 ==========
As of October 31, 2003, the components of distributable earnings on a tax basis were as follows: Undistributed ordinary income............................... $ 155,602 Undistributed long-term capital gain........................ $1,897,803
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES Under the terms of the Trust's Investment Advisory Agreement, Van Kampen Asset Management (the "Adviser") provides investment advice and facilities to the Trust for an annual fee payable monthly of .60% of the average daily net assets of the Trust. In addition, the Trust pays a monthly administrative fee to Van Kampen Investments Inc. or its affiliates (collectively "Van Kampen"), the Trust's Administrator, at an annual rate of .05% of the average daily net assets of the Trust. Effective June 1, 2004, the administrative fee was reduced from ..05% to .00%. For the six months ended April 30, 2004, the Trust recognized expenses of approximately $3,300 representing legal services provided by Skadden, Arps, Slate, Meagher & Flom LLP, counsel to the Trust, of which a trustee of the Trust is an affiliated person. Under separate Accounting Services and Legal Services agreements, the Adviser provides accounting and legal services to the Trust. The Adviser allocates the cost of such services to each trust. For the six months ended April 30, 2004, the Trust recognized expenses of approximately $13,300 representing Van Kampen's cost of providing accounting and legal services to the Trust, which are reported as part of "Other" and "Legal" expenses, respectively, in the Statement of Operations. 15 VAN KAMPEN ADVANTAGE PENNSYLVANIA MUNICIPAL INCOME TRUST NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2004 (UNAUDITED) continued Certain officers and trustees of the Trust are also officers and directors of Van Kampen. The Trust does not compensate its officers or trustees who are officers of Van Kampen. The Trust provides deferred compensation and retirement plans for its trustees who are not officers of Van Kampen. Under the deferred compensation plan, trustees may elect to defer all or a portion of their compensation to a later date. Benefits under the retirement plan are payable upon retirement for a ten-year period and are based upon each trustee's years of service to the Trust. The maximum annual benefit per trustee under the plan is $2,500. 3. INVESTMENT TRANSACTIONS During the period, the cost of purchases and proceeds from sales of investments, excluding short-term investments, were $3,209,760 and $7,153,096, respectively. 4. PREFERRED SHARES The Trust has outstanding 1,600 Auction Preferred Shares ("APS"). Dividends are cumulative and the dividend rate is currently reset every 28 days through an auction process. The rate in effect on April 30, 2004 was 1.048%. During the six months ended April 30, 2004, the rates ranged from 0.880% to 1.320%. 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. 16 VAN KAMPEN ADVANTAGE PENNSYLVANIA MUNICIPAL INCOME TRUST BOARD OF TRUSTEES AND IMPORTANT ADDRESSES BOARD OF TRUSTEES DAVID C. ARCH J. MILES BRANAGAN JERRY D. CHOATE ROD DAMMEYER LINDA HUTTON HEAGY R. CRAIG KENNEDY HOWARD J KERR MITCHELL M. MERIN* JACK E. NELSON RICHARD F. POWERS, III* HUGO F. SONNENSCHEIN WAYNE W. WHALEN* - Chairman SUZANNE H. WOOLSEY INVESTMENT ADVISER VAN KAMPEN ASSET MANAGEMENT 1221 Avenue of the Americas New York, New York 10020 CUSTODIAN AND TRANSFER AGENT STATE STREET BANK AND TRUST COMPANY c/o EquiServe P.O. Box 43011 Providence, Rhode Island 02940-3011 LEGAL COUNSEL SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP 333 West Wacker Drive Chicago, Illinois 60606 INDEPENDENT AUDITORS DELOITTE & TOUCHE LLP 180 North Stetson Avenue Chicago, Illinois 60601 * "Interested persons" of the Trust, as defined in the Investment Company Act of 1940, as amended. 17 Van Kampen Privacy Notice The Van Kampen companies and investment products* respect your right to privacy. We also know that you expect us to conduct and process your business in an accurate and efficient manner. To do so, we must collect and maintain certain nonpublic personal information about you. This is information we collect from you on applications or other forms, and from the transactions you conduct with us, our affiliates, or third parties. We may also collect information you provide when using our Web site, and text files (also known as "cookies") may be placed on your computer to help us to recognize you and to facilitate transactions you initiate. We do not disclose any nonpublic personal information about you or any of our former customers to anyone, except as permitted by law. For instance, so that we may continue to offer you Van Kampen investment products and services that meet your investing needs, and to effect transactions that you request or authorize, we may disclose the information we collect to companies that perform services on our behalf, such as printers and mailers that assist us in the distribution of investor materials. These companies will use this information only for the services for which we hired them, and are not permitted to use or share this information for any other purpose. To protect your nonpublic personal information internally, we permit access to it only by authorized employees, and maintain physical, electronic and procedural safeguards to guard your nonpublic personal information. * Includes Van Kampen Investments Inc., Van Kampen Asset Management, Van Kampen Advisors Inc., Van Kampen Funds Inc., Van Kampen Investor Services Inc., Van Kampen System Inc. and Van Kampen Exchange Corp., as well as the many Van Kampen mutual funds and Van Kampen unit investment trusts. Van Kampen Funds Inc. 1 Parkview Plaza, P.O. Box 5555 Oakbrook Terrace, IL 60181-5555 www.vankampen.com (VAN KAMPEN INVESTMENTS LOGO) Copyright (C)2004 Van Kampen Funds Inc. All rights reserved. Member NASD/SIPC. VAP SAR 6/04 RN04-00732P-Y04/04 Item 2. Code of Ethics. Not applicable for semi-annual reports. Item 3. Audit Committee Financial Expert. Not applicable for semi-annual reports. Item 4. Principal Accountant Fees and Services. Not applicable for semi-annual reports. Item 5. Audit Committee of Listed Registrants. Not applicable for semi-annual reports. Item 6. [Reserved.] Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. Not applicable. Item 8. [Reserved.] Item 9. Controls and Procedures (a) The Trust's principal executive officer and principal financial officer have concluded that the Trust's disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Trust in this Form N-CSR was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, based upon such officers' evaluation of these controls and procedures as of a date within 90 days of the filing date of the report. (b) There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 10. Exhibits. (a) Code of Ethics -- Not applicable for semi-annual reports. (b)(1) A certification for the Principal Executive Officer of the registrant is attached hereto as part of EX-99.CERT. (b)(2) A certification for the Principal Financial Officer of the registrant is attached hereto as part of EX-99.CERT. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant)Van Kampen Advantage Pennsylvania Municipal Income Trust By:/s/ Ronald E. Robison --------------------- Name: Ronald E. Robison Title: Principal Executive Officer Date: June 22, 2004 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Ronald E. Robison --------------------- Name: Ronald E. Robison Title: Principal Executive Officer Date: June 22, 2004 By: /s/ John L. Sullivan -------------------- Name: John L. Sullivan Title: Principal Financial Officer Date: June 22, 2004 EX-99.CERT 2 c85416exv99wcert.txt CERTIFICATION I, Ronald E. Robison, certify that: 1. I have reviewed this report on Form N-CSR of Van Kampen Advantage Pennsylvania Municipal Income Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; [b) Omitted.] c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting. Date: June 22, 2004 /s/ Ronald E. Robison --------------------------- Principal Executive Officer I, John L. Sullivan, certify that: 1. I have reviewed this report on Form N-CSR of Van Kampen Advantage Pennsylvania Municipal Income Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; [b) Omitted.] c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting. Date: June 22, 2004 /s/ John L. Sullivan --------------------------- Principal Financial Officer EX-99.906CERT 3 c85416exv99w906cert.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 Advantage Pennsylvania Municipal Income Trust In connection with the Report on Form N-CSR (the "Report") of the above-named issuer for the period ended April 30, 2004 that is accompanied by this certification, the undersigned hereby certifies that: 1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Issuer. Date: June 22, 2004 /s/ Ronald E. Robison --------------------------- Ronald E. Robison Principal Executive Officer A signed original of this written statement required by Section 906 has been provided to Van Kampen Advantage Pennsylvania Municipal Income Trust and will be retained by Van Kampen Advantage Pennsylvania Municipal Income 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 Advantage Pennsylvania Municipal Income Trust In connection with the Report on Form N-CSR (the "Report") of the above-named issuer for the period ended April 30, 2004 that is accompanied by this certification, the undersigned hereby certifies that: 1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Issuer. Date: June 22, 2004 /s/ John L. Sullivan --------------------------- John L. Sullivan Principal Financial Officer A signed original of this written statement required by Section 906 has been provided to Van Kampen Advantage Pennsylvania Municipal Income Trust and will be retained by Van Kampen Advantage Pennsylvania Municipal Income 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-----