<PAGE> 1
TABLE OF CONTENTS
<TABLE>
<S> <C>
Letter to Shareholders........................... 1
Performance Results.............................. 5
Glossary of Terms................................ 6
Portfolio of Investments......................... 8
Statement of Assets and Liabilities.............. 11
Statement of Operations.......................... 12
Statement of Changes in Net Assets............... 13
Financial Highlights............................. 14
Notes to Financial Statements.................... 16
Report of Independent Accountants................ 19
Dividend Reinvestment Plan....................... 20
</TABLE>
VKC ANR 8/98
<PAGE> 2
LETTER TO SHAREHOLDERS
July 23, 1998
Dear Shareholder,
Recently, we decided to
consolidate all Van Kampen American
Capital mutual funds under the single
name of Van Kampen Funds. This move
accompanies the change in the legal
name of our firm to Van Kampen Funds [PHOTO]
Inc. Consequently, your Trust's name
will be changing to Van Kampen
California Municipal Trust on August
28. You can be assured that the DENNIS J. MCDONNELL AND DON G. POWELL
change in your Trust's name will not
affect its management or daily operations, and your Trust will continue to trade
under its current ticker symbol. If you have any questions regarding your Trust
or our new name, please contact your financial adviser.
ECONOMIC OVERVIEW
The economy staged an impressive performance during the past year. Growth
surged despite a sharp drop in exports to Asia, inflation was muted, and
consumer confidence jumped to a 29-year high. Even Alan Greenspan, chairman of
the Federal Reserve Board, has sung the economy's praises.
For the first three quarters of the reporting period, growth accelerated at
a 4 percent annual rate. At the same time, consumer prices rose 1.3 percent.
Inflation was tempered by a strong dollar, which slashed import prices and
limited price hikes among competing U.S. goods as it climbed to an eight-year
high against the Japanese yen. Lower oil prices, increased productivity, and a
pending budget surplus also contributed to the lack of price pressures.
Comforted by the lack of inflation at home and concerned about Asia's
financial future, the Fed refrained from raising interest rates during the
reporting period. The Asian crisis, otherwise, had a limited impact on the U.S.
economy. Heavy consumer spending and a large inventory buildup by manufacturers
overcame the drop in exports to the region.
In California, economic growth continued to outpace the national rate.
Employment climbed to a record level in the first quarter of 1998, leading to
higher-than-expected personal income tax and retail sales tax revenues. Looking
ahead, however, a prolonged decline in exports to Asia coupled with increasing
school funding requirements and property tax limits could dampen growth.
MARKET OVERVIEW
U.S. bonds rallied during the reporting period against the backdrop of
benign inflation, steady Fed policy, and the economic crisis in Asia. The yield
of the 30-year Treasury
Continued on page two
1
<PAGE> 3
bond, which moves in the opposite direction of its price, fell from 6.78 percent
on June 30, 1997, to 5.63 percent a year later. Yields dropped to a record 5.57
percent in June amid heavy buying by investors seeking a safe haven from the
Asian tumult.
Earlier in the reporting period, however, foreign sales of Treasury
securities moved bond yields higher and bond prices lower. Fears of a Fed rate
hike alternating with disappointment about the lack of a rate cut also created
market volatility. The 30-year Treasury bond yield periodically jumped above the
pivotal 6.00 percent level, after initially dropping below it in December. By
mid-May, bond yields resumed their decline and the rally gained momentum.
Municipal bonds tracked the movement of Treasuries but did not gain nearly
as much in price because their supply far outpaced demand. Foreign investors
were not as interested in municipal bonds as they were in Treasuries, because
they had no need for the tax-exempt income. In addition, many domestic investors
preferred stocks as they rallied to unprecedented highs. By the end of the
reporting period, the average yield of a AAA-rated 30-year general obligation
municipal bond was 4.96 percent, down from 5.38 percent a year earlier.
In the intervening months, state and local governments took advantage of
lower interest rates and issued bonds to refinance older, higher-yielding
securities, as well as fund new projects. During the first half of 1998, new
issues of long-term municipal bonds soared to $146.4 billion, up from $94.6
billion during the first half of 1997. Almost half of the new issues were
insured and rated AAA. The dominance of insured bonds reduced the supply of
lower-rated, higher-yielding securities and narrowed the spread between yields
of higher-quality and lower-quality bonds.
[CREDIT QUALITY GRAPH]
Portfolio Composition by Credit Quality*
as of June 30, 1998
<TABLE>
<S> <C>
AAA.................. 63.3%
AA................... 10.8%
A.................... 12.3%
BBB.................. 13.6%
</TABLE>
*As a Percentage of Long-Term investments
Based upon the highest credit qualaity ratings by
Standard & Poor's or Moddy's.
TRUST STRATEGY
We used the following strategies to manage the Trust during the period:
We enhanced the credit quality of the Trust by replacing lower-quality bonds
with AAA-rated insured securities. Under current market conditions,
higher-quality bonds yield almost as much as lower-quality bonds but carry far
less credit risk. In addition, they tend to perform best when interest rates are
falling, which was the case for most of the
Continued on page three
2
<PAGE> 4
reporting period. We had little trouble finding such bonds because AAA-rated
securities comprise more than 60 percent of new municipal bond issues in
California.
We limited the number of purchases during the period because market yields
were lower than the average yields of bonds in the portfolio. Most of our
acquisitions were designed to offset changes in the portfolio caused by market
shifts. Due to the decline in interest rates, for example, approximately $2.3
million worth of bonds in the portfolio were prerefunded for calls this year,
and another $11 million were priced to call dates in the following two years. In
order to compensate for the potential loss of these bonds, which account for
about 24 percent of the Trust, we purchased noncallable long-term bonds and
long-term bonds with 10 years' worth of call protection.
Our acquisitions favored zero coupon bonds and other deep discount bonds
because these bonds have the potential to appreciate in value faster than par or
premium bonds during periods of falling interest rates. Discount bonds also have
a longer duration, which makes them more sensitive to changing rates. Our
purchases of discount bonds helped to offset the decline in the Trust's duration
due to prerefundings and repricings of bonds to their call dates. As of June 30,
the duration of the Trust was 7.65 years, compared with 8.32 years for the
Lehman Brothers California Municipal Bond Index minus bonds with maturities of
five years or less. Looking ahead, we hope to lengthen the Trust's duration in
order to match the duration of the index.
TOP FIVE PORTFOLIO INDUSTRY HOLDINGS BY SECTOR*
AS OF JUNE 30, 1998
<TABLE>
<S> <C>
Single-Family Housing................................... 17.4%
Tax District............................................ 12.0%
Transportation.......................................... 10.8%
Public Education........................................ 9.2%
Health Care............................................. 8.8%
</TABLE>
* As a Percentage of Long-Term Investments
PERFORMANCE SUMMARY
For the 12-month period ended June 30, 1998, the Trust generated a total
return of 7.77 percent(1). This reflects a decrease in market price per common
share from $12.1875 on June 30, 1997, to $12.1250 on June 30, 1998, plus
reinvestment of dividends. The Trust had a tax-exempt distribution rate of 5.69
percent(3), based on the closing price of its common shares. Because income from
the Trust is exempt from federal and California income taxes, this distribution
rate is equivalent to a yield of 9.81 percent(4) on a taxable investment (for
investors in the combined federal and state income tax bracket of 42 percent).
As a result of a moderate decline in the Trust's earnings, the Board of
Trustees approved a decrease in its monthly dividend from $0.0625 to $0.0575 per
common share payable December 31, 1997. Please refer to the chart on page five
for additional performance numbers.
Continued on page four
3
<PAGE> 5
[DIVIDEND HISTORY GRAPH]
TWELVE-MONTH DISTRIBUTION HISTORY
FOR THE PERIOD ENDED JUNE 30, 1998
<TABLE>
<CAPTION>
Distribution per Common Share
<S> <C>
Jul 1997..................... $.0625
Aug 1997..................... $.0625
Sep 1997..................... $.0625
Oct 1997..................... $.0625
Nov 1997..................... $.0625
Dec 1997..................... $.2782
Jan 1998..................... $.0575
Feb 1998..................... $.0575
Mar 1998..................... $.0575
Apr 1998..................... $.0575
May 1998..................... $.0575
Jun 1998..................... $.0575
</TABLE>
The distribution history represents past performance of the Trust and does
not predict the Trusts future distributions.
ECONOMIC OUTLOOK
We expect economic growth in the second half of 1998 will slacken from its
brisk first-quarter pace, due to the Asian economic crisis, General Motors
strike, and slowing inventory buildup by American industry. The bond market
itself is suggesting a slowdown: the yield spread between short-term and
long-term Treasury securities is almost flat, a configuration that typically
indicates economic moderation.
We believe there is little chance that the Fed will raise rates during the
coming months unless price pressures build and the economic slowdown is
short-lived. One indicator we will be watching closely is the consumer price
index, because its growth rate has begun to accelerate. If inflation rises
sharply and the Fed does decide to raise rates, long-term bond yields will
likely top 6.00 percent. Otherwise, yields are likely to remain within their
recent range, between 5.50 percent and 6.00 percent.
In the meantime, we will closely monitor market developments and their
effects on the performance of the Trust, adjusting the portfolio when
appropriate. We remain committed to maximizing the distribution of tax-free
dividends to our investors and enhancing the total returns of the Trust. Thank
you for your continued support and confidence in Van Kampen and the management
of your Trust.
Sincerely,
[SIG]
Don G. Powell
Chairman
Van Kampen Investment Advisory Corp.
[SIG]
Dennis J. McDonnell
President
Van Kampen Investment Advisory Corp.
Please see footnotes on page five
4
<PAGE> 6
PERFORMANCE RESULTS FOR THE PERIOD ENDED JUNE 30, 1998
VAN KAMPEN AMERICAN CAPITAL CALIFORNIA MUNICIPAL TRUST
(AMEX TICKER SYMBOL--VKC)
TOTAL RETURNS
<TABLE>
<S> <C>
One-year total return based on market price(1)............ 7.77%
One-year total return based on NAV(2)..................... 11.40%
DISTRIBUTION RATES
Distribution rate as a % of closing common stock
price(3)................................................. 5.69%
Taxable-equivalent distribution rate as a % of closing
common stock price(4).................................... 9.81%
SHARE VALUATIONS
Net asset value........................................... $10.67
Closing common stock price................................ $12.125
One-year high common stock price (10/07/97)............... $12.9375
One-year low common stock price (04/22/98)................ $11.250
Preferred share rate(5)................................... 3.85%
</TABLE>
(1)Total return based on market price assumes an investment at the 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 stock price at the end of the period
indicated.
(2)Total return based on net asset value (NAV) assumes an investment at the
beginning of the period indicated, reinvestment of all distributions for the
period, and sale of all shares at the end of the period, all at NAV.
(3)Distribution rate represents the monthly annualized distributions of the
Trust at the end of the period and not the earnings of the Trust.
(4)The taxable-equivalent distribution rate is calculated assuming a 42%
combined federal and state tax bracket, which takes into consideration the
deductibility of individual state taxes paid.
(5)See "Notes to Financial Statements" footnote #5, for more information
concerning Preferred Share reset periods.
A portion of the interest income may be taxable for those investors subject to
the federal alternative minimum tax (AMT).
Past performance does not guarantee future results. Investment return, stock
price and net asset value will fluctuate with market conditions. Trust shares,
when sold, may be worth more or less than their original cost.
5
<PAGE> 7
GLOSSARY OF TERMS
CALL FEATURE: Allows the issuer to buy back a bond on specific call dates before
maturity. Call dates and prices are set when the bond is issued. To compensate
the bondholder for loss of income and ownership, the initial call price is
usually higher than the face value of the bond. Bonds are usually called when
interest rates drop so significantly that the issuer can save money by issuing
new bonds at lower rates.
CREDIT RATING: An evaluation of an issuer's credit history and capability of
repaying obligations. Standard & Poor's and Moody's Investors Service are two
companies that assign bond ratings. Standard & Poor's ratings range from a high
of AAA to a low of D, while Moody's ratings range from a high of Aaa to a low of
C.
CREDIT SPREAD: Also called quality spread, the difference in yield between
higher-quality issues (such as Treasury securities) and lower-quality issues.
Normally, lower-quality issues provide higher yields to compensate investors for
the additional credit risk.
DISCOUNT BOND: A bond whose market price is lower than its face value (or "par
value"). Because bonds usually mature at face value, a discount bond has more
potential to appreciate in price than a par bond does.
DURATION: A measure of the sensitivity of a bond's price to changes in interest
rates, expressed in years. Each year of duration represents an expected 1
percent change in the price of a bond for every 1 percent change in interest
rates. The longer a fund's duration, the greater the effect of interest rate
movements on net asset value. Typically, funds with shorter durations have
performed better in rising rate environments, while funds with longer durations
have performed better when rates decline.
FEDERAL RESERVE BOARD (THE FED): The governing body of the Federal Reserve
System, which is the central bank system of the United States. Its policy-making
committee, called the Federal Open Market Committee, meets eight times a year to
establish monetary policy and monitor the economic pulse of the U.S.
GENERAL OBLIGATION BONDS: Bonds backed by the full faith and credit (taxing
authority) of the issuer for timely payment of interest and principal. These
bonds are issued to finance essential government projects, such as highways and
schools.
INFLATION: An economic state in which the money supply and business activity
dramatically increase, accompanied by sharply rising prices. Inflation is widely
measured by the Consumer Price Index, an economic indicator that measures the
change in the cost of purchased goods and services.
6
<PAGE> 8
GLOSSARY OF TERMS (CONTINUED)
INSURED BOND: A bond that is insured against default by the municipal bond
insurer. If the issuer defaults, the insurance company will step in and take
over payments of interest and principal. As a result of this protection against
credit risk, most insured bonds are AAA-rated. Recently, an A-rated insurer has
started to insure lower-quality municipal bonds, and those bonds are A-rated.
Insurance on the bonds does not relate to mutual fund shares, which will
fluctuate in price.
INVESTMENT GRADE BONDS: Securities rated BBB and above by Standard & Poor's or
Baa and above by Moody's Investor Services. Bonds rated below BBB or Baa are
noninvestment grade.
MARKET PRICE: The price of a share of a closed-end fund trading on a stock
exchange. When the price is less than a fund's net asset value, the fund is
trading at a discount. When the price is more than the NAV, the fund is trading
at a premium.
MUNICIPAL BOND: A debt security issued by a state, municipality, or other
government entity to finance capital expenditures such as the construction of
highways, public works, or school buildings. Interest on municipal bonds is
exempt from federal taxation and, potentially, from state and local taxation.
NET ASSET VALUE (NAV): The value of a mutual fund share, calculated by deducting
a fund's liabilities from its total assets and dividing this amount by the
number of shares outstanding.
PREREFUNDING: A process whereby new bonds are issued to refinance an outstanding
bond issue. This typically occurs when interest rates decline and an issuer
replaces its higher-yielding bonds with current lower-yielding issues.
PREMIUM BOND: A bond whose market price is above its face value (or "par
value"). Because bonds usually mature at face value, a premium bond has less
potential to appreciate in price than a par bond does.
YIELD SPREAD: The difference between the yields of different bonds, due to their
different credit ratings or maturities. When yield spreads between bonds of
different credit quality are narrow, there is less incentive to own the
lower-quality bond. When yield spreads between bonds of different maturities are
narrow, there is less incentive to own the bond with the longer maturity. In
both cases, the investor is not being compensated for the additional risk.
ZERO COUPON BONDS: A corporate or municipal debt security that is traded at a
deep discount to face value and pays no interest. It may be redeemed at maturity
for full face value.
7
<PAGE> 9
PORTFOLIO OF INVESTMENTS
June 30, 1998
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
Par
Amount
(000) Description Coupon Maturity Market Value
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL BONDS 95.7%
$ 790 Bay Area Govt Assn CA Rev Tax Alloc CA Redev Agy
Pool Rev Ser A (FSA Insd)........................ 6.000% 12/15/15 $ 850,751
500 Brea & Olinda, CA Unified Sch Dist Ctfs Partn Sr
High Sch Pgm Ser A Rfdg (FSA Insd)............... 6.000 08/01/09 541,710
1,000 California Edl Fac Auth Rev Student Ln CA Ln Pgm
Ser A (MBIA Insd)................................ 6.000 03/01/16 1,046,850
1,300 California Hlth Fac Fin Auth Rev Insd Episcopal
Homes Ser A...................................... 7.800 07/01/15 1,327,287
1,500 California Hlth Fac Fin Auth Rev Saint Joseph
Hlth Sys Ser A (Prerefunded @ 07/01/01).......... 6.750 07/01/21 1,643,385
1,000 California Hsg Fin Agy Rev Home Mtg Ser E (AMBAC
Insd)............................................ 6.100 08/01/29 1,060,340
2,000 California Hsg Fin Agy Rev Home Mtg Ser N........ 6.375 02/01/27 2,146,800
2,785 California Hsg Fin Agy Rev Homeowner Mtg Ser D... * 08/01/20 511,270
13,030 California Hsg Fin Agy Rev Homeowner Mtg Ser D
(AMBAC Insd)..................................... * 08/01/20 2,392,047
1,000 California Hsg Fin Agy Rev Multi-Family Hsg III
Ser A (MBIA Insd)................................ 5.850 08/01/17 1,041,600
2,000 California Pollutn Ctl Fin Auth Pollutn Ctl Rev
Southn CA Edison Co (AMBAC Insd)................. 6.000 07/01/27 2,120,680
885 California Rural Home Mtg Fin Auth Single Family
Mtg Rev Ser C (GNMA Collateralized).............. 7.800 02/01/28 1,012,821
45 California St (MBIA Insd)........................ 6.000 10/01/14 48,747
755 California St (Prerefunded @ 10/01/02) (MBIA
Insd)............................................ 6.000 10/01/14 826,378
1,000 California St Pub Wks Brd Lease Rev Var CA St
Univ Projs Ser A................................. 6.300 10/01/10 1,130,070
1,000 California St Pub Wks Brd Lease Rev Var CA St
Univ Projs Ser A................................. 6.375 10/01/14 1,134,160
1,000 California St Ser BH (FSA Insd).................. 5.400 12/01/15 1,020,470
1,000 California St Ser BH (FSA Insd).................. 5.500 12/01/24 1,015,580
3,000 California Statewide Cmntys Dev Auth Spl Fac
United Airls..................................... 5.625 10/01/34 3,034,650
785 Central Contra Costa, CA Santn Dist Rev Wastewtr
Fac Impt Proj (MBIA Insd)........................ 6.250 09/01/11 874,663
1,000 Contra Costa, CA Tran Auth Sales Tax Rev Ser A... 6.875 03/01/07 1,138,580
1,000 Desert Hosp Dist CA Hosp Rev Ctfs Partn Desert
Hosp Corp Proj (Prerefunded @ 07/01/00).......... 8.100 07/01/20 1,100,410
1,280 El Cerrito, CA Redev Agy Tax Alloc (MBIA Insd)... 5.250 07/01/15 1,300,928
2,000 Emeryville, CA Pub Fin Auth Rev Hsg Increment Sub
Lien A (Prerefunded @ 02/01/01).................. 7.875 02/01/15 2,221,740
1,000 Folsom, CA Spl Tax Cmnty Fac Dist No 2 Rfdg
(Connie Lee Insd)................................ 5.250 12/01/19 1,003,790
3,000 Foothill/Eastern Corridor Agy CA Toll Rd Rev Cap
Apprec Sr Lien Ser A............................. * 01/01/28 608,730
</TABLE>
See Notes to Financial Statements
8
<PAGE> 10
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1998
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Par
Amount
(000) Description Coupon Maturity Market Value
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL BONDS (CONTINUED)
$ 1,000 Foothill/Eastern Corridor Agy CA Toll Rd Rev Conv
Cap Apprec Sr Lien Ser A (a)..................... 0/7.050% 01/01/10 $ 790,710
5,435 Foothill/Eastern Corridor Agy CA Toll Rd Rev Cap
Apprec Sr Lien Ser A............................. * 01/01/19 1,801,159
1,225 Fresno, CA Uni Sch Dist Ser A Rfdg (MBIA Insd)... 6.550 08/01/20 1,452,691
790 Los Angeles Cnty, CA Ctfs Partn Disney Pkg
Proj............................................. * 03/01/10 430,037
800 Los Angeles Cnty, CA Ctfs Partn Disney Pkg
Proj............................................. * 03/01/11 410,824
1,292 Los Angeles Cnty, CA Tran Comm Lease Rev Dia RR
Lease Ltd (FSA Insd)............................. 7.375 12/15/06 1,417,531
1,390 Metropolitan Wtr Dist Southn CA Wtrwks Rev Ser
C................................................ 5.000 07/01/37 1,349,398
1,800 Mountain View Los Altos CA Union High Sch Dist
Ctfs Partn (MBIA Insd)........................... 5.625 08/01/16 1,842,030
3,095 Paramount, CA Redev Agy Tax Alloc Redev Proj Area
No 1 Ser B (Prerefunded @ 08/01/03) (MBIA
Insd)............................................ * 08/01/26 533,640
1,350 Pomona, CA Pub Fin Auth Rev SW Pomona Redev Proj
W Rfdg (MBIA Insd)............................... 5.000 02/01/24 1,318,504
1,000 San Bernardino Cnty, CA Ctfs Partn Med Cent Fin
Proj (MBIA Insd)................................. 5.000 08/01/28 971,920
1,210 San Jose, CA Redev Tax Alloc Hsg Set Aside Mergd
Area Ser E (MBIA Insd)........................... 5.750 08/01/17 1,284,875
865 Santa Barbara, CA Ctfs Partn..................... 7.650 05/01/15 930,359
1,450 Santa Barbara, CA Ctfs Partn Wtr Sys Impt Proj &
Rfdg (AMBAC Insd)................................ 6.700 04/01/27 1,583,965
85 Southern CA Home Fin Auth Single Family Mtg Rev
Ser B (GNMA Collateralized)...................... 7.750 03/01/24 89,468
600 Southern CA Pub Pwr Auth Pwr Proj Rev
Multi-Projs...................................... 5.500 07/01/20 603,552
</TABLE>
See Notes to Financial Statements
9
<PAGE> 11
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1998
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Par
Amount
(000) Description Coupon Maturity Market Value
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL BONDS (CONTINUED)
$ 1,000 University of CA Rev Resh Facs Ser C Rfdg (FSA
Insd)............................................ 5.000% 09/01/24 $ 976,390
2,000 Westminster, CA Redev Agy Tax Alloc Rev Coml
Redev Proj No 1 Ser A Rfdg (Prerefunded @
08/01/01)........................................ 7.300 08/01/21 2,229,780
-----------
TOTAL LONG-TERM INVESTMENTS 95.7%
(Cost $47,919,624)........................................................... 52,171,270
SHORT-TERM INVESTMENTS 1.3%
(Cost $700,000).............................................................. 700,000
-----------
TOTAL INVESTMENTS 97.0%
(Cost $48,619,624)........................................................... 52,871,270
OTHER ASSETS IN EXCESS OF LIABILITIES 3.0%.................................... 1,652,315
-----------
NET ASSETS 100.0%............................................................. $54,523,585
===========
* Zero coupon bond
</TABLE>
(a) Security is a "step up" bond where the coupon increases or steps up at a
predetermined date.
10 See Notes to Financial Statements
<PAGE> 12
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1998
<TABLE>
- --------------------------------------------------------------------------------
<S> <C>
ASSETS:
Total Investments (Cost $48,619,624)........................ $52,871,270
Cash........................................................ 20,858
Receivables:
Investments Sold.......................................... 998,611
Interest.................................................. 902,873
Other....................................................... 4,406
-----------
Total Assets.......................................... 54,798,018
-----------
LIABILITIES:
Payables:
Income Distributions--Preferred Shares.................... 59,068
Investment Advisory Fee................................... 26,897
Affiliates................................................ 9,596
Trustees' Deferred Compensation and Retirement Plans........ 92,089
Accrued Expenses............................................ 86,783
-----------
Total Liabilities..................................... 274,433
-----------
NET ASSETS.................................................. $54,523,585
===========
NET ASSETS CONSIST OF:
Preferred Shares ($.01 par value, authorized 1,000,000
shares, 400 shares are issued and outstanding with a
liquidation preference of $50,000 per share).............. $20,000,000
-----------
Common Shares ($.01 par value with an unlimited number of
shares authorized, 3,236,436 shares issued and
outstanding).............................................. 32,364
Paid in Surplus............................................. 29,336,568
Net Unrealized Appreciation................................. 4,251,646
Accumulated Net Realized Gain............................... 767,318
Accumulated Undistributed Net Investment Income............. 135,689
-----------
Net Assets Applicable to Common Shares................ 34,523,585
-----------
NET ASSETS.................................................. $54,523,585
===========
NET ASSET VALUE PER COMMON SHARE ($34,523,585 divided by
3,236,436 shares outstanding)............................. $ 10.67
===========
</TABLE>
11 See Notes to Financial Statements
<PAGE> 13
STATEMENT OF OPERATIONS
For the Year Ended June 30, 1998
<TABLE>
- --------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Interest.................................................... $3,287,269
----------
EXPENSES:
Investment Advisory Fee..................................... 326,219
Preferred Share Maintenance................................. 62,089
Accounting Services......................................... 34,447
Audit....................................................... 29,565
Trustees' Fees and Expenses................................. 23,998
Custody..................................................... 8,863
Legal....................................................... 5,538
Other....................................................... 47,585
----------
Total Expenses.......................................... 538,304
----------
NET INVESTMENT INCOME....................................... $2,748,965
==========
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Gain........................................... $1,007,981
----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 3,593,450
End of the Period......................................... 4,251,646
----------
Net Unrealized Appreciation During the Period............... 658,196
----------
NET REALIZED AND UNREALIZED GAIN............................ $1,666,177
==========
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $4,415,142
==========
</TABLE>
12 See Notes to Financial Statements
<PAGE> 14
STATEMENT OF CHANGES IN NET ASSETS
For the Years Ended June 30, 1998 and 1997
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Year Ended Year Ended
June 30, 1998 June 30, 1997
- ------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income....................................... $ 2,748,965 $ 2,852,759
Net Realized Gain........................................... 1,007,981 556,587
Net Unrealized Appreciation During the Period............... 658,196 685,695
----------- -----------
Change in Net Assets from Operations........................ 4,415,142 4,095,041
----------- -----------
Distributions from Net Investment Income:
Common Shares............................................. (2,306,556) (2,405,288)
Preferred Shares.......................................... (718,601) (678,245)
----------- -----------
(3,025,157) (3,083,523)
Distributions from Net Realized Gain--Common Shares......... (711,433) (490,372)
----------- -----------
Total Distributions....................................... (3,736,590) (3,573,905)
----------- -----------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES......... 678,552 521,136
FROM CAPITAL TRANSACTIONS:
Value of Common Shares Issued Through Dividend
Reinvestment.............................................. 222,838 224,216
----------- -----------
TOTAL INCREASE IN NET ASSETS................................ 901,390 745,352
NET ASSETS:
Beginning of the Period..................................... 53,622,195 52,876,843
----------- -----------
End of the Period (Including accumulated undistributed net
investment income of $135,689 and $411,881,
respectively)............................................. $54,523,585 $53,622,195
=========== ===========
</TABLE>
13 See Notes to Financial Statements
<PAGE> 15
FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for one common share
of the Trust outstanding throughout the periods indicated.
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
-----------------------------------------------------
1998 1997 1996 1995 1994
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of the
Period (a).......................... $10.450 $10.283 $10.395 $10.301 $10.963
------- ------ ------ ------ ------
Net Investment Income............... .851 .888 .919 .951 .956
Net Realized and Unrealized
Gain/Loss......................... .524 .393 (.001) .111 (.740)
------- ------- ------ ------ ------
Total from Investment Operations...... 1.375 1.281 .918 1.062 .216
------- ------- ------ ------ ------
Less:
Distributions from Net Investment
Income:
Paid to Common Shareholders....... .715 .750 .750 .725 .712
Common Share Equivalent of
Distributions Paid to Preferred
Shareholders.................... .222 .211 .230 .237 .156
Distributions from Net Realized Gain
Paid to Common Shareholders....... .221 .153 .050 .006 .010
------- ------- ------ ------ ------
Total Distributions................... 1.158 1.114 1.030 .968 .878
------- ------- ------ ------ ------
Net Asset Value, End of the Period.... $10.667 $10.450 $10.283 $10.395 $10.301
======= ======= ======= ======= =======
Market Price Per Share at End of the
Period.............................. $12.125 $12.1875 $10.875 $10.750 $10.625
Total Investment Return at Market
Price (b)........................... 7.77% 21.40% 9.02% 8.67% 4.32%
Total Return at Net Asset Value (c)... 11.40% 10.76% 6.62% 8.47% .35%
Net Assets at End of the Period (In
millions)........................... $54.5 $53.6 $52.9 $53.0 $52.6
Ratio of Expenses to Average Net
Assets Applicable to Common
Shares**............................ 1.57% 1.58% 1.65% 1.65% 1.53%
Ratio of Net Investment Income to
Average Net Assets Applicable to
Common Shares (d)................... 5.91% 6.51% 6.57% 7.02% 7.28%
Portfolio Turnover.................... 53% 30% 19% 16% 11%
</TABLE>
* Non-Annualized
** Ratio of Expenses to Average Net
Assets Including Preferred
Shares............................. .99% .99% 1.03% 1.02% .97%
*** If certain expenses had not been assumed by Van Kampen, the annualized Ratio
of Expenses to Average Net Assets Applicable to Common Shares, Ratio of
Expenses to Average Net Assets Including Preferred Shares and the Ratio of
Net Investment Income to Average Net Assets Applicable to Common Shares
would have been 2.06%, 1.22% and 6.80% for the year ended June 30, 1991,
1.31%, 1.13% and 6.21% for the year ended June 30, 1990, and 1.09%, 1.09%
and 6.04% for the period ended June 30, 1989.
(a) Net Asset Value at November 1, 1988 of $9.300 is adjusted for common share
offering costs of $.145 per common share. Net asset value at June 30, 1989
of $9.416 is adjusted for preferred share offering costs of $.204 per common
share.
(b) Total Investment Return at Market Price reflects the change in market value
of the common shares for the period indicated with reinvestment of dividends
in accordance with the Trust's dividend reinvestment plan.
(c) Total Return at Net Asset Value (NAV) reflects the change in the value of
the Trust's assets with reinvestment of dividends based upon NAV.
(d) Net investment income is adjusted for common share equivalent of
distributions paid to preferred shareholders.
N/A = Not Applicable
14
<PAGE> 16
- ---------------------------------------------------------------------
<TABLE>
<CAPTION>
November 1, 1988
(Commencement
Year Ended June 30 of Investment
- ------------------------------------------- Operations) to
1993 1992 1991 1990 June 30, 1989
- -----------------------------------------------------------------
<S> <C> <C> <C> <C>
$10.147 $9.408 $9.095 $9.212 $9.155
------- ------ ------ ------ ------
.968 .946 .975 .719 .385
.788 .719 .313 (.117) .261
------- ------ ------ ------ ------
1.756 1.665 1.288 .602 .646
------- ------ ------ ------ ------
.663 .654 .648 .648 .385
.167 .245 .327 .071 -0-
.110 .027 -0- -0- -0-
------- ------ ------ ------ ------
.940 .926 .975 .719 .385
------- ------ ------ ------ ------
$10.963 $10.147 $9.408 $9.095 $9.416
======= ====== ====== ====== =======
$10.875 $9.875 $9.750 $9.125 $9.875
18.49% 8.44% 14.51% (.95%) 2.92%*
16.19% 15.54% 10.85% 4.27% (2.43%)*
$54.5 $51.9 $49.5 $ 48.4 $ 29.3
1.57% 2.07% 1.88%*** .50%*** .87%***
7.62% 7.74% 6.98%*** 7.01%*** 6.26%***
18% 41% 99% 100% 57%*
.98% 1.26% 1.11%** .43%*** N/A
</TABLE>
See Notes to Financial Statements
15
<PAGE> 17
NOTES TO FINANCIAL STATEMENTS
June 30, 1998
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen American Capital California Municipal Trust (the "Trust") is
registered as a diversified closed-end management investment company under the
Investment Company Act of 1940, as amended. The Trust's investment objective is
to provide a high level of current income exempt from federal and California
income taxes with safety of principal. The Trust will invest in a portfolio
consisting substantially of California municipal obligations rated investment
grade at the time of investment. The Trust commenced investment operations on
November 1, 1988.
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 generally accepted
accounting principles 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--Investments are stated at value using market quotations
or, if such valuations are not available, estimates obtained from yield data
relating to instruments or securities with similar characteristics in accordance
with 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.
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
maintain, in a segregated account with its custodian, assets having an aggregate
value at least equal to the amount of the when issued or delayed delivery
purchase commitments until payment is made. At June 30, 1998, there were no when
issued or delayed delivery purchase commitments.
C. INVESTMENT INCOME--Interest income is recorded on an accrual basis. Bond
premium and original issue discount are amortized over the expected life of each
applicable security.
16
<PAGE> 18
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 1998
- --------------------------------------------------------------------------------
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.
At June 30, 1998, cost of long- and short-term investments for federal
income tax purposes is $48,619,624; the aggregate gross unrealized appreciation
is $4,251,646 and the aggregate gross unrealized depreciation is $0, resulting
in net unrealized appreciation of $4,251,646.
Net realized gains or losses may differ for financial and tax reporting
purposes primarily as a result of post October 31 losses which are not
recognized for tax purposes until the first day of the following year.
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 to common shareholders. Distributions from net
realized gains for book purposes may include short-term capital gains, which are
included as ordinary income for tax purposes.
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of the Trust's Investment Advisory Agreement, Van Kampen
Investment Advisory Corp. (the "Adviser") will provide investment advice and
facilities to the Trust for an annual fee payable monthly of .60% of the average
net assets of the Trust.
For the year ended June 30, 1998, the Trust recognized expenses of
approximately $900 representing legal services provided by Skadden, Arps, Slate,
Meagher & Flom (Illinois), counsel to the Trust, of which a trustee of the Trust
is an affiliated person.
For the year ended June 30, 1998, the Trust recognized expenses of
approximately $40,700 representing Van Kampen Inc.'s or its affiliates'
(collectively "Van Kampen") cost of providing accounting, legal and certain
shareholder services to the Trust.
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
17
<PAGE> 19
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 1998
- --------------------------------------------------------------------------------
retirement plan are payable for a ten-year period and are based upon each
trustee's years of service to the Trust. The maximum annual benefit per trustee
under the plan is $2,500.
3. CAPITAL TRANSACTIONS
At June 30, 1998 and June 30, 1997, paid in surplus related to common shares
aggregated $29,336,568 and $29,113,921, respectively.
Transactions in common shares were as follows:
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
JUNE 30, 1998 JUNE 30, 1997
- ----------------------------------------------------------------------------
<S> <C> <C>
Beginning Shares......................... 3,217,303 3,197,321
Shares Issued Through Dividend
Reinvestment........................... 19,133 19,982
--------- ---------
Ending Shares............................ 3,236,436 3,217,303
========= =========
</TABLE>
4. INVESTMENT TRANSACTIONS
During the period, the cost of purchases and proceeds from sales of investments,
excluding short-term investments, were $28,727,429 and $31,074,930,
respectively.
5. REMARKETED PREFERRED SHARES
The Trust has outstanding 400 shares of Remarketed Preferred Shares ("RP").
Dividends are cumulative and the rate is reset through an auction process every
28 days. The rate in effect on June 30, 1998, was 3.85%, and for the year then
ended rates ranged from 3.25% to 4.25%.
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.
The RP are redeemable at the option of the Trust in whole or in part at the
liquidation value of $50,000 per share plus accumulated and unpaid dividends.
The Trust is subject to certain asset coverage tests, and the RP are subject to
mandatory redemptions if the tests are not met.
18
<PAGE> 20
REPORT OF INDEPENDENT ACCOUNTANTS
The Board of Trustees and Shareholders of
Van Kampen American Capital California Municipal Trust:
We have audited the accompanying statement of assets and liabilities of Van
Kampen American Capital California Municipal Trust (the "Trust"), including the
portfolio of investments, as of June 30, 1998, and the related statement of
operations for the year then ended, the statement of changes in net assets for
each of the two years in the period then ended, and the financial highlights for
each of the periods presented. These financial statements and financial
highlights are the responsibility of the Fund'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 generally accepted auditing
standards. 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. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of June
30, 1998, by correspondence with the custodian and broker. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. 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 American Capital California Municipal Trust as of June 30, 1998, the
results of its operations 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 periods presented, in conformity with generally accepted
accounting principles.
KPMG Peat Marwick LLP
Chicago, Illinois
August 3, 1998
19
<PAGE> 21
DIVIDEND REINVESTMENT PLAN
The Trust offers a dividend reinvestment plan (the "Plan") pursuant to which
Common Shareholders may elect to have dividends and capital gains distributions
reinvested in Common Shares of the Trust. The Trust declares dividends out of
net investment income, and will distribute annually net realized capital gains,
if any. Common Shareholders may join or withdraw from the Plan at any time.
If you decide to participate in the Plan, State Street Bank and Trust
Company, as your Plan Agent, will automatically invest your dividends and
capital gains distributions in Common Shares of the Trust for your account.
HOW TO PARTICIPATE
If you wish to participate and your shares are held in your own name, call
1-800-341-2929 for more information and a Plan brochure. If your shares are held
in the name of a brokerage firm, bank, or other nominee, you should contact your
nominee to see if it would participate in the Plan on your behalf. If you wish
to participate in the Plan, but your brokerage firm, bank or nominee is unable
to participate on your behalf, you should request that your shares be re-
registered in your own name which will enable your participation in the Plan.
HOW THE PLAN WORKS
Participants in the Plan will receive the equivalent in Common Shares valued on
the valuation date, generally at the lower of market price or net asset value,
except as specified below. The valuation date will be the dividend or
distribution payment date or, if that date is not a trading day on the national
securities exchange or market system on which the Common Shares are listed for
trading, the next preceding trading day. If the market price per Common Share on
the valuation date equals or exceeds net asset value per Common Share on that
date, the Trust will issue new Common Shares to participants valued at the
higher of net asset value or 95% of the market price on the valuation date. In
the foregoing situation, the Trust will not issue Common Shares under the Plan
below net asset value. If net asset value per Common Share on the valuation date
exceeds the market price per Common Share on that date, or if the Board of
Trustees should declare a dividend or capital gains distribution payable to the
Common Shareholders only in cash, participants in the Plan will be deemed to
have elected to receive Common Shares from the Trust valued at the market price
on that date. Accordingly, in this circumstance, the Plan Agent will, as agent
for the participants, buy the Trust's Common Shares in the open market for the
participants' accounts on or shortly after the payment date. If, before the Plan
Agent has completed its purchases, the market price exceeds the net asset value
per share of the Common Shares, the average per share purchase price paid by the
Plan Agent may exceed the net asset value of the Trust's Common Shares,
resulting in the acquisition of fewer Common Shares than if the dividend or
distribution had been paid in Common Shares issued by the Trust. All
reinvestments are in full and fractional Common shares and are carried to three
decimal places.
Experience under the Plan may indicate that changes are desirable.
Accordingly, the Trust reserves the right to amend or terminate the Plan as
applied to any dividend or distribution paid subsequent to written notice of the
change sent to all Common Shareholders of the Trust at least 90 days before the
record date for the dividend or distribution. The Plan also may be amended or
terminated by the Plan Agent by at least 90 days written notice to all Common
Shareholders of the Trust.
COSTS OF THE PLAN
The Plan Agent's fees for the handling of the reinvestment of dividends and
distributions will be paid by the Trust. However, each participant will pay a
pro rata share of brokerage commissions incurred with respect to the Plan
Agent's open market purchases in connection with the reinvestment of dividends
and distributions. No other charges will be made to participants for reinvesting
dividends or capital gains distributions, except for certain brokerage
commissions, as described above.
TAX IMPLICATIONS
You will receive tax information annually for your personal records and to help
you prepare your federal income tax return. The automatic reinvestment of
dividends and capital gains distributions does not relieve you of any income tax
which may be payable on dividends or distributions.
RIGHT TO WITHDRAW
Plan participants may withdraw at any time by calling 1-800-341-2929 or by
writing State Street Bank and Trust Company, P.O. Box 8200, Boston, MA 02266-
8200. If you withdraw, you will receive, without charge, a share certificate
issued in your name for all full Common Shares credited to your account under
the Plan and a cash payment will be made for any fractional Common Share
credited to your account under the Plan. You may again elect to participate in
the Plan at any time by calling 1-800-341-2929 or writing to the Trust at:
Van Kampen Funds Inc.
Attn: Closed-End Funds
2800 Post Oak Blvd.
Houston, TX 77056
20
<PAGE> 22
VAN KAMPEN FUNDS
EQUITY FUNDS
Domestic
Aggressive Equity
Aggressive Growth
American Value
Comstock
Emerging Growth
Enterprise
Equity Growth
Equity Income
Growth
Growth and Income
Harbor
Pace
Real Estate Securities
U.S. Real Estate
Utility
Value
International/Global
Asian Growth
Emerging Markets
Global Equity
Global Equity Allocation
Global Managed Assets
International Magnum
Latin American
FIXED-INCOME FUNDS
Income
Corporate Bond
Global Fixed Income
Global Government Securities
Government Securities
High Income Corporate Bond
High Yield
High Yield & Total Return
Limited Maturity Government
Short-Term Global Income
Strategic Income
U.S. Government
U.S. Government Trust for Income
Worldwide High Income
Tax Exempt Income
California Insured Tax Free
Florida Insured Tax Free Income
High Yield Municipal
Insured Tax Free Income
Intermediate Term Municipal Income
Municipal Income
New York Tax Free Income
Pennsylvania Tax Free Income
Tax Free High Income
Capital Preservation and
Senior Loan Fund
Prime Rate Income Trust
Reserve
Senior Floating Rate
Tax Free Money
To find out more about any of these funds, ask your financial adviser for a
prospectus, which contains more complete information, including sales
charges, risks, and expenses. Please read it carefully before you invest or
send money.
To view a current Van Kampen fund prospectus or to receive additional fund
information, choose from one of the following:
- visit our web site at
WWW.VAN-KAMPEN.COM -- to view prospectuses, select Investors' Place, then
Download a Prospectus
- call us at 1-800-341-2911 weekdays from 7:00 a.m. to 7:00 p.m. Central time
(Telecommunications Device for the Deaf users, call 1-800-421-2833)
- e-mail us by visiting
WWW.VAN-KAMPEN.COM and selecting Investors' Place
21
<PAGE> 23
VAN KAMPEN AMERICAN CAPITAL CALIFORNIA MUNICIPAL TRUST
BOARD OF TRUSTEES
DAVID C. ARCH
ROD DAMMEYER
HOWARD J KERR
STEVEN MULLER
DENNIS J. MCDONNELL*--Chairman
THEODORE A. MYERS
DON G. POWELL*
HUGO F. SONNENSCHEIN
WAYNE W. WHALEN*
OFFICERS
DENNIS J. MCDONNELL*
President
RONALD A. NYBERG*
Vice President and Secretary
EDWARD C. WOOD, III*
Vice President and Chief Financial Officer
CURTIS W. MORELL*
Vice President and Chief Accounting Officer
JOHN L. SULLIVAN*
Treasurer
TANYA M. LODEN*
Controller
PETER W. HEGEL*
Vice President
INVESTMENT ADVISER
VAN KAMPEN INVESTMENT ADVISORY CORP.
One Parkview Plaza
Oakbrook Terrace, Illinois 60181
CUSTODIAN AND TRANSFER AGENT
STATE STREET BANK
AND TRUST COMPANY
225 Franklin Street
P.O. Box 1713
Boston, Massachusetts 02105
LEGAL COUNSEL
SKADDEN, ARPS, SLATE,
MEAGHER & FLOM (ILLINOIS)
333 West Wacker Drive
Chicago, Illinois 60606
INDEPENDENT ACCOUNTANTS
KPMG PEAT MARWICK LLP
Peat Marwick Plaza
303 East Wacker Drive
Chicago, Illinois 60601
* "Interested" persons of the Trust, as defined in the Investment Company Act of
1940.
(C) Van Kampen Funds Inc., 1998 All rights reserved.
(SM) denotes a service mark of Van Kampen Funds Inc.
22
<PAGE> 24
RESULTS OF SHAREHOLDER VOTES
The Joint Annual Meeting of Shareholders of the Trust was held on June 26,
1998, where shareholders voted on the election of Trustees and the selection of
KPMG Peat Marwick LLP as independent accountants.
1) With regard to the election of the following Trustees by the common
shareholders of the Trust:
<TABLE>
<CAPTION>
# of Shares
-----------------------------
In Favor Withheld
- ------------------------------------------------------------------------------------------
<S> <C> <C>
Don G. Powell 2,185,277 23,959
Hugo F. Sonnenschein 2,185,277 23,959
</TABLE>
2) With regard to the election of Theodore A. Myers as elected trustee by
the preferred shareholders of the Trust 394 shares voted in his favor and 0
shares withheld.
3) With regard to the ratification of KPMG Peat Marwick LLP as independent
accountants for the Trust, 2,174,389 shares voted in favor of the proposal,
3,400 shares voted against and 31,840 shares abstained.
23
<PAGE> 25
VAN KAMPEN CALIFORNIA MUNICIPAL TRUST
THIS PAGE INTENTIONALLY LEFT BLANK
24
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 11
<NAME> VKAC CALIFORNIA MUNICIPAL TRUST
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-START> JUL-01-1997
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 48,619,624
<INVESTMENTS-AT-VALUE> 52,871,270
<RECEIVABLES> 1,901,484
<ASSETS-OTHER> 560
<OTHER-ITEMS-ASSETS> 24,704
<TOTAL-ASSETS> 54,798,018
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 274,433
<TOTAL-LIABILITIES> 274,433
<SENIOR-EQUITY> 20,000,000
<PAID-IN-CAPITAL-COMMON> 29,368,932
<SHARES-COMMON-STOCK> 3,236,436
<SHARES-COMMON-PRIOR> 3,217,303
<ACCUMULATED-NII-CURRENT> 135,689
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 767,318
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,251,646
<NET-ASSETS> 54,523,585
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3,287,269
<OTHER-INCOME> 0
<EXPENSES-NET> (538,304)
<NET-INVESTMENT-INCOME> 2,748,965
<REALIZED-GAINS-CURRENT> 1,007,981
<APPREC-INCREASE-CURRENT> 658,196
<NET-CHANGE-FROM-OPS> 4,415,142
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (3,025,157)
<DISTRIBUTIONS-OF-GAINS> (711,433)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 19,133
<NET-CHANGE-IN-ASSETS> 901,390
<ACCUMULATED-NII-PRIOR> 411,881
<ACCUMULATED-GAINS-PRIOR> 470,770
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 326,219
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 538,304
<AVERAGE-NET-ASSETS> 34,377,859
<PER-SHARE-NAV-BEGIN> 10.450
<PER-SHARE-NII> 0.851
<PER-SHARE-GAIN-APPREC> 0.524
<PER-SHARE-DIVIDEND> (0.937)
<PER-SHARE-DISTRIBUTIONS> (0.221)
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 10.667
<EXPENSE-RATIO> 1.57
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
