<PAGE> 1
VAN KAMPEN TAX EXEMPT TRUST
ON BEHALF OF ITS SERIES
VAN KAMPEN HIGH YIELD MUNICIPAL FUND
SUPPLEMENT DATED JANUARY 8, 2001 TO THE
PROSPECTUS DATED MARCH 29, 2000,
SUPERSEDING ALL PRIOR SUPPLEMENTS
The Prospectus is hereby supplemented as follows:
(1) The information on the inside back cover of the Prospectus under the
heading BOARD OF TRUSTEES AND OFFICERS -- BOARD OF TRUSTEES is hereby amended by
deleting Paul G. Yovovich, effective April 14, 2000 and Fernando Sisto,
effective December 31, 2000.
(2) The information on the inside back cover of the Prospectus under the
heading "BOARD OF TRUSTEES AND OFFICERS -- OFFICERS" is hereby amended by
deleting all information pertaining to Peter W. Hegel*, effective May 31, 2000,
by deleting and replacing Stephen L. Boyd's title of Vice President with
Executive Vice President and Chief Investment Officer, effective April 17, 2000,
by deleting and replacing Edward C. Wood, III*, Vice President, with John H.
Zimmermann, III*, Vice President, effective April 17, 2000, and by adding John
R. Reynoldson, Vice President and Richard A. Ciccarone, Vice President;
effective June 7, 2000.
(3) The information on the inside back cover of the Prospectus under the
heading "FOR MORE INFORMATION -- INDEPENDENT ACCOUNTANTS" is hereby deleted and
replaced with the following:
Independent Auditors
ERNST & YOUNG LLP
233 South Wacker Drive
Chicago, Illinois 60606
RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
HYM SPT 525
50 150 250
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VAN KAMPEN TAX EXEMPT TRUST
ON BEHALF OF ITS SERIES
VAN KAMPEN HIGH YIELD MUNICIPAL FUND
SUPPLEMENT DATED JANUARY 8, 2001 TO THE
STATEMENT OF ADDITIONAL INFORMATION DATED MARCH 29, 2000,
SUPERSEDING ALL PRIOR SUPPLEMENTS
The Statement of Additional Information is hereby supplemented as follows:
(1) The first and second paragraphs in the section entitled "INITIAL AND
VARIATION MARGIN" under the "INVESTMENT OBJECTIVE POLICIES AND RISKS -- FUTURES
CONTRACTS AND RELATED OPTIONS" section is hereby deleted in its entirety and
replaced with the following:
INITIAL AND VARIATION MARGIN. In contrast to the purchase or sale of a
security, no price is paid or received upon the purchase or sale of a futures
contract. Initially, the Fund is required to deposit an amount of cash or liquid
securities equal to a percentage (which will range between 1% and 10%) of the
contract amount with either a futures commission merchant pursuant to rules and
regulations promulgated under the 1940 Act or with its custodian in an account
in the broker's name. This amount is known as initial margin. The nature of
initial margin in futures transactions is different from that of margin in
securities transactions in that futures contract margin does not involve the
borrowing of funds by the customer to finance the transaction. Rather, the
initial margin is in the nature of a performance bond or good faith deposit on
the contract, which is returned to the Fund upon termination of the futures
contract and satisfaction of its contractual obligations. Subsequent payments to
and from the broker, called variation margin, are made on a daily basis as the
price of the underlying securities or index fluctuates, making the long and
short positions in the futures contract more or less valuable, a process known
as marking to market.
For example, when the Fund purchases a futures contract and the price of
the underlying security or index rises, that position increases in value, and
the Fund receives a variation margin payment equal to that increase in value.
Conversely, where the Fund purchases a futures contract and the value of the
underlying security or index declines, the position is less valuable, and the
Fund is required to make a variation margin payment.
(2) The section entitled "TRUSTEES AND OFFICERS -- TRUSTEES" is hereby
amended by deleting Paul G. Yovovich, effective April 14, 2000 and Fernando
Sisto, effective December 31, 2000.
(3) The section entitled "TRUSTEES AND OFFICERS -- OFFICERS" is hereby
amended by deleting all information pertaining to Edward C. Wood, III and
Stephen L. Boyd, effective April 17, 2000, and Peter W. Hegel, effective May 31,
2000, and by adding the following:
<TABLE>
<S> <C>
Stephen L. Boyd...................... Executive Vice President and Chief Investment Officer of Van
Date of Birth: 11/16/40 Kampen Investments, and President and Chief Operating
Executive Vice President and Officer of the Advisers. Executive Vice President and Chief
Chief Investment Officer Investment Officer of each of the funds in the Fund Complex
Age: 60 and certain other investment companies advised by the
Advisers or their affiliates. Prior to April 2000, Vice
President and Chief Investment Officer of the Advisers.
Prior to October 1998, Vice President and Senior Portfolio
Manager with AIM Capital Management, Inc. Prior to February
1998, Senior Vice President and Portfolio Manager of Van
Kampen American Capital Asset Management, Inc., Van Kampen
American Capital Investment Advisory Corp. and Van Kampen
American Capital Management, Inc.
John H. Zimmermann, III.............. Senior Vice President and Director of Van Kampen
Date of Birth: 11/25/57 Investments, President and Director of the Distributor and
Vice President President of Van Kampen Insurance Agency of Illinois Inc.
Age: 43 Vice President of each of the funds in the Fund Complex.
From November 1992 to December 1997, Senior Vice President
of the Distributor.
</TABLE>
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<TABLE>
<S> <C>
Richard A. Ciccarone................. Senior Vice President and Co-head of the Fixed Income
Date of Birth: 06/15/52 Department of the Advisers, Van Kampen Management Inc. and
Vice President Van Kampen Advisors Inc. Prior to May 2000, he served as
Age: 48 Co-head of Municipal Investments and Director of Research of
the Advisers, Van Kampen Management Inc. and Van Kampen
Advisors Inc. Mr. Ciccarone first joined the Adviser in June
1983, and worked for the Adviser until May 1989, with his
last position being a Vice President. From June 1989 to
April 1996, he worked at EVEREN Securities (formerly known
as Kemper Securities), with his last position at EVEREN
being an Executive Vice President. Since April 1996, Mr.
Ciccarone has been a Senior Vice President of the Advisers,
Van Kampen Management Inc. and Van Kampen Advisors Inc.
John R. Reynoldson................... Senior Vice President and Co-head of the Fixed Income
Date of Birth: 05/15/53 Department of the Advisers, Van Kampen Management Inc. and
Vice President Van Kampen Advisors Inc. Prior to May 2000, he managed the
Age: 47 investment grade taxable group for the Adviser since July
1999. From July 1988 to June 1999, he managed the government
securities bond group for Asset Management. Mr. Reynoldson
has been with Asset Management since April 1987, and has
been a Senior Vice President of Asset Management since July
1988. He has been a Senior Vice President of the Adviser and
Van Kampen Management Inc. since June 1995 and Senior Vice
President of Van Kampen Advisors Inc. since June 2000.
</TABLE>
(4) The footnote to the "CLASS A SHARES SALES CHARGE TABLE" at the end of
the second paragraph in the section entitled "DISTRIBUTION AND SERVICE" is
hereby deleted in its entirety and replaced with the following:
* No sales charge is payable at the time of purchase on investments of
$1 million or more, although the Fund may impose a contingent deferred
sales charge of 1.00% on certain redemptions made within one year of
purchase. A commission or transaction fee will be paid by the Distributor
at the time of purchase directly out of the Distributor's assets (and not
out of the Fund's assets) to authorized dealers who initiate and are
responsible for purchases of $1 million or more computed on a percentage of
the dollar value of such shares sold as follows: 1.00% on sales to $2
million, plus 0.80% on the next $1 million and 0.50% on the excess over $3
million. For single purchases of $20 million or more by an individual
retail investor the Distributor will pay, at the time of purchase and
directly out of the Distributor's assets (and not out of the Fund's
assets), a commission or transaction fee of 1.00% to authorized dealers who
initiate and are responsible for such purchases. The commission or
transaction fee of 1.00% will be computed on a percentage of the dollar
value of such shares sold.
(5) The section entitled "OTHER INFORMATION -- CUSTODY OF ASSETS" is hereby
deleted in its entirety and replaced with the following:
Except for segregated assets held by a futures commission merchant pursuant
to rules and regulations promulgated under the 1940 Act, all securities owned by
the Fund and all cash, including proceeds from the sale of shares of the Fund
and of securities in the Fund's investment portfolio, are held by State Street
Bank and Trust Company, 225 Franklin Street, Boston, Massachusetts 02110, as
custodian. The custodian also provides accounting services to the Fund.
(6) The information in the section entitled "OTHER
INFORMATION -- INDEPENDENT ACCOUNTANTS" is hereby deleted in its entirety and
replaced with the following:
INDEPENDENT AUDITORS
Independent auditors for the Fund perform an annual audit of the Fund's
financial statements. The Fund's Board of Trustees has engaged Ernst & Young
LLP, located at 233 South Wacker Drive, Chicago, Illinois 60606, to be the
Fund's independent auditors, effective May 18, 2000. PricewaterhouseCoopers LLP,
located at 200 East Randolph Drive, Chicago, Illinois 60601 ("PWC"), ceased
being the Fund's independent auditors effective May 18, 2000. The cessation of
the client-auditor relationship between the Fund and PWC
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was based solely on a possible future business relationship by PWC with an
affiliate of the Fund's investment adviser. The change in independent auditors
was approved by the Fund's audit committee and the Fund's Board of Trustees,
including Trustees who are not "interested persons" of the Fund (as defined in
the 1940 Act).
RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
MF SPT SAI 3
