VAN KAMPEN AMERICAN CAPITAL MUNICIPAL TRUST, N-30D, 1997-04-17

VAN KAMPEN AMERICAN CAPITAL MUNICIPAL TRUST
N-30D, 1997-04-17

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<PAGE> 1

TABLE OF CONTENTS

<TABLE>
<S> <C>
Letter to Shareholders........................... 1
Performance Results.............................. 5
Portfolio of Investments......................... 6
Statement of Assets and Liabilities.............. 16
Statement of Operations.......................... 17
Statement of Changes in Net Assets............... 18
Financial Highlights............................. 19
Notes to Financial Statements.................... 20
</TABLE>

VKQ SAR 4/97
<PAGE> 2

LETTER TO SHAREHOLDERS

March 21, 1997

Dear Shareholder,
As mentioned in your previous
report, VK/AC Holding, Inc., the parent
company of Van Kampen American Capital,
Inc., was acquired by Morgan Stanley
Group Inc., a world leader in asset
management and investment banking. The
transaction was completed in October, [PHOTO]
and we look forward to exploring the
opportunities it creates for investors.
As part of the acquisition, Van Kampen DENNIS J. MCDONNELL AND DON G. POWELL
American Capital became the distributor
of Morgan Stanley retail funds on January 2, 1997.
More recently, on February 5, 1997, it was announced that Morgan Stanley
Group Inc. and Dean Witter, Discover & Co. agreed to merge. The combined company
will be a preeminent global financial services firm, with leading market
positions in securities, asset management and credit services. As the financial
industry continues to witness unprecedented consolidations and new partnerships,
we believe those firms that want to offer investors the greatest opportunities
and services in the next century must be market leaders in all facets of their
business.

ECONOMIC REVIEW
Due to fears that strong economic growth would trigger higher inflation and
cause the Federal Reserve Board to raise interest rates, bond prices dropped
sharply in the first few months of 1996. The Fed ultimately decided to take no
action, however, and bond prices responded with a rally in May. The rally
continued through the latter part of 1996, with bonds regaining much of the loss
they experienced earlier in the year. Election-year politics further
strengthened the municipal market; the flat federal income tax proposal lost
support, and the status quo of a split government (a Democratic president and a
Republican Congress) was maintained.
Fixed-income prices showed some volatility in the first two months of 1997,
but remained unchanged from year end. During the six-month reporting period,
municipal bond yields decreased an average of 25 basis points. In comparison,
taxable yields decreased 30 to 35 basis points over the same period. The Trust
performed well in this environment in which interest rates declined and the
price of bonds increased.

FUND STRATEGY

We employed the following strategies in managing the Trust:
- - We maintained a barbell approach to credit quality, which means we
concentrated our investments in the highest and lowest levels of the
investment grade rating spectrum.

Continued on page two

<PAGE> 3

As of February 28, 1997, over 39 percent of the Trust's long-term
investments are AAA-rated, the highest credit rating assigned to bonds by
the Standard & Poor's Ratings Group. Another 40 percent of the long-term
investments are non-rated (with an equivalent rating of investment grade at
the time of purchase) or rated BBB or below. By investing at both ends of
the investment grade rating spectrum, the portfolio's exposure to the
volatility of interest rate movements tends to be more balanced. While the
AAA-rated securities tend to provide safety of principal and total return
opportunities, lower-rated and non-rated bonds provide income potential and
have tended to exhibit lower price volatility as interest rates change. The
value of Trust shares will fluctuate.

[CREDIT QUALITY GRAPH]

Portfolio Composition by Credit Quality as of February 28, 1997

<TABLE>
<S> <C>
AAA............. 39.5%
AA.............. 10.0%
A............... 9.9%
BBB............. 21.7%
BB.............. 8.9%
Not-Rated....... 10.0%
</TABLE>

Based upon credit quality ratings issued by Standard & Poor's. For securities
not rated by Standard & Poor's, the Moody's rating is used.

- - Rather than focusing on market timing, we attempt to identify securities
that we believe will outperform within a sector and which can be acquired at
an attractive price. This "bottom-up" approach to security selection, aided
by our research team, provides significant added value to the portfolio.

- - We invested in bonds in the 10- to 20-year range of the yield curve, seeking
to capture the maximum yield with less volatility. Yields on securities in
this maturity range were almost 90 percent of the yields on securities
maturing in 30 years, with substantially reduced volatility--about
two-thirds of the longer maturity securities.

- - We adjusted the Trust's duration to seek to manage volatility. Duration,
which is expressed in years, is a measurement of the portfolio's volatility
to interest rate movements. Portfolios with shorter durations have tended to
perform better when interest rates are rising. At the end of the period, the
Trust's duration stood at 6.90 years, comparatively shorter than the Lehman
Brothers Municipal Bond Index benchmark of 7.59 years. While the shorter
duration added to the Trust's performance in the first half of 1996, it
prevented the Trust from taking full advantage of the decline in interest
rates during the latter half.

Continued on page three

2
<PAGE> 4
[BAR GRAPH]

Six-month Dividend History
For the Period Ended February 28, 1997

The dividend history represents past performance of the Trust and does not
predict the Trust's future distributions.

PERFORMANCE SUMMARY

We are pleased to report that the Van Kampen American Capital Municipal
Trust continued its positive performance over the first half of its fiscal year.
For the six-month period ended February 28, 1997, the Trust generated a total
return at market price of 4.24 percent(1). The Trust offered a tax-exempt
distribution rate of 6.51 percent(3), based on the closing common stock price of
$14.75 per share on February 28, 1997. Because income from the Trust is exempt
from federal income tax, this distribution rate represents a yield equivalent to
a taxable investment earning 10.17 percent(4) (for investors in the 36 percent
federal income tax bracket).

MUNICIPAL MARKET OUTLOOK

We continue to see signs of a strengthening economy. As a result, we believe
it is more likely that interest rates will rise rather than decline, although we
do not expect to see a drastic move in either direction. We are, however,
maintaining a defensive posture with the Trust by maintaining a relatively short
duration in the event of an increase in interest rates.

Please see footnotes on page four

3
<PAGE> 5

Relatively stable interest rates are favorable for the leveraged structure
of our closed-end funds, which involves borrowing short-term funds to purchase
long-term municipal securities. The leveraged capital structure of the Trust has
continued to provide common shareholders with above-market levels of dividend
income. It should be noted, however, that a significant rise in short-term
interest rates would have an unfavorable effect on the dividend-paying ability
of the common shares, and would also negatively impact the price.
We believe the Trust is positioned to perform well in the coming months, and
do not anticipate major changes in the portfolio's characteristics. We will
continue to seek to balance the Trust's total return and dividend income. At the
same time, we seek to manage the volatility of the Trust by adjusting the
duration when necessary, and to continue to add value through security
selection. Thank you for your confidence in Van Kampen American Capital and in
your Trust's management team.

Sincerely,

[SIG]
Don G. Powell

Chairman
Van Kampen American Capital
Investment Advisory Corp.

[SIG]
Dennis J. McDonnell

President
Van Kampen American Capital
Investment Advisory Corp.

Please see footnotes on page five

4
<PAGE> 6

PERFORMANCE RESULTS FOR THE PERIOD ENDED FEBRUARY 28, 1997

VAN KAMPEN AMERICAN CAPITAL MUNICIPAL TRUST
(NYSE TICKER SYMBOL -- VKQ)

<TABLE>
<S> <C>
COMMON SHARE TOTAL RETURNS
Six-month total return based on market price(1)............ 4.24%
Six-month total return based on NAV(2)..................... 5.92%

DISTRIBUTION RATES

Distribution rate as a % of closing common stock
price(3)................................................... 6.51%
Taxable-equivalent distribution rate as a % of closing
common stock price(4)...................................... 10.17%

SHARE VALUATIONS

Net asset value............................................ $ 16.29
Closing common stock price................................. $14.750
Six-month high common stock price (02/28/97)............... $14.750
Six-month low common stock price (01/02/97)................ $13.750
Preferred share (Series A) rate(5)......................... 3.400%
Preferred share (Series B) rate(5)......................... 3.400%
Preferred share (Series C) rate(5)......................... 3.370%
Preferred share (Series D) rate(5)......................... 3.890%
</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 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 36% federal
income tax bracket.

(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.

Market forecasts provided in this report may not necessarily come to pass.

5
<PAGE> 7

PORTFOLIO OF INVESTMENTS

February 28, 1997 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par Amount
(000) Description Coupon Maturity Market Value
- ---------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS
ALABAMA 0.6%
$ 1,640 Jasper, AL Wtrwks & Swr Brd Wtr & Swr Rev
(AMBAC Insd).................................. 5.850% 06/01/13 $ 1,695,760
1,450 Jefferson Cnty AL Swr Rev Rfdg Wts Ser A (FGIC
Insd)......................................... 5.625 02/01/22 1,425,132
2,000 Jefferson Cnty, AL Swr Rev Rfdg Wts Ser A
(FGIC Insd)................................... 5.375 02/01/27 1,913,980
------------
5,034,872
------------
CALIFORNIA 5.5%
4,100 California St Pub Wks Brd Lease Rev Rfdg Dept
Of Corr Ser B (MBIA Insd)..................... 5.625 11/01/19 4,053,055
8,500 Castaic Union Sch Dist, CA Cap Apprec Ser A
(FGIC Insd)................................... * 05/01/18 2,531,385
5,000 Contra Costa, CA Home Mtg Fin Auth Home Mtg
Rev (MBIA Insd)............................... * 09/01/17 1,520,350
1,145 Del Mar CA Race Track Auth Rev Rfdg........... 5.500 08/15/97 1,151,858
1,210 Del Mar CA Race Track Auth Rev Rfdg........... 5.500 08/15/98 1,226,928
2,000 Del Mar CA Race Track Auth Rev Rfdg........... 6.000 08/15/06 2,026,580
7,560 Delano, CA Ctfs Partn Ser A................... 9.250 01/01/22 8,496,382
4,775 Los Angeles, CA Multi-Family Rev Ser G Rfdg
(FSA Insd).................................... 5.650 01/01/14 4,743,867
3,000 Los Angeles, CA Uni Sch Dist Ctfs Partn (FSA
Insd)......................................... 5.500 10/01/16 2,941,710
7,000 Orange Cnty, CA Recovery Ctfs Ser A (MBIA
Insd)......................................... 6.000 07/01/07 7,582,890
10,000 Orange Cnty, CA Recovery Ser A Rfdg (MBIA
Insd) (c)..................................... 6.000 06/01/09 10,816,700
5,695 Sacramento, CA City Fin Auth Rev Comb Proj B
(MBIA Insd)................................... * 11/01/14 2,112,617
------------
49,204,322
------------
COLORADO 10.2%
19,500 Arapahoe Cnty, CO Cap Impt Trust Fund Hwy Rev
E-470 Proj Ser C.............................. * 08/31/26 2,438,280
5,000 Boulder Cnty, CO Rev Natl Cent Atmosphere Rfdg
& Impt........................................ 6.900 12/01/07 5,478,000
8,500 Boulder Cnty, CO Rev Natl Cent Atmosphere Rfdg
& Impt........................................ 7.000 12/01/13 9,291,520
2,090 Colorado Hsg Fin Auth Single Family Pgm Sr Gtd
Mtg Ln D3 (FHA Gtd)........................... 7.200 08/01/23 2,180,162
10,000 Denver, CO City & Cnty Arpt Rev Ser A......... 8.250 11/15/12 11,340,200
12,800 Denver, CO City & Cnty Arpt Rev Ser A......... 8.500 11/15/23 14,585,600
8,535 Denver, CO City & Cnty Arpt Rev Ser A......... 8.000 11/15/25 9,520,366
11,100 Denver, CO City & Cnty Arpt Rev Ser D......... 7.000 11/15/25 11,666,877
22,000 Meridian Metro Dist CO Peninsular & Oriental
Steam Navig Co Rfdg(c)........................ 7.500 12/01/11 24,178,220
------------
90,679,225
------------
</TABLE>

See Notes to Financial Statements

6
<PAGE> 8

PORTFOLIO OF INVESTMENTS (CONTINUED)

February 28, 1997 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par Amount
(000) Description Coupon Maturity Market Value
- ---------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
CONNECTICUT 2.1%
$ 7,140 Connecticut St Hlth & Edl Fac Auth Rev Nursing
Home Proj AHF/Hartford........................ 7.125% 11/01/24 $ 8,137,815
7,000 Mashantucket Western Pequot Tribe CT Spl Rev
Ser A......................................... 6.400 09/01/11 7,280,490
3,275 Waterbury, CT Hsg Auth Multi family Rev Mtg
2nd Lien GNMA Sec 8 Proj A.................... 5.850 02/01/37 3,234,914
------------
18,653,219
------------
DELAWARE 0.5%
2,000 Delaware St Econ Dev Auth Rev Exempt Fac
Delmarva Pwr & Lt Co.......................... 7.500 10/01/17 2,133,820
2,460 Delaware St Hsg Auth Rev Sr Home Mtg Ser B
Subser B2..................................... 7.200 12/01/21 2,560,811
------------
4,694,631
------------
DISTRICT OF COLUMBIA 0.3%
1,000 District of Columbia Hosp Rev Medlantic
Hlthcare Group A Rfdg (MBIA Insd) (c)......... 5.875 08/15/19 1,003,280
2,000 District of Columbia Rev Carnegie Endowment... 5.750 11/15/26 1,971,500
------------
2,974,780
------------
FLORIDA 2.8%
2,600 Brevard Cnty, FL Sch Brd Ctfs Partn Ser A
(AMBAC Insd).................................. 5.400 07/01/10 2,655,172
1,000 Florida St Correctional Privatization Comm
Ctfs Partn (AMBAC Insd)....................... 5.000 08/01/17 936,150
1,000 Hillsborough Cnty, FL Indl Dev Auth Indl Dev
Rev Univ Cmnty Hosp (MBIA Insd)............... 5.750 08/15/14 1,016,380
3,000 Palm Beach Cnty, FL Hlth Fac Retiremnt Cmnty
Acts Obl Group................................ 5.625 11/15/20 2,911,830
7,760 Sarasota Cnty, FL Hlth Fac Auth Rev Hlthcare
Kobernick/Meadow Park (Prerefunded @
07/01/02)..................................... 10.000 07/01/22 9,802,354
8,000 South Broward Hosp Dist FL Rev Hosp Rev Bonds
(MBIA Insd)................................... 5.250 05/01/21 7,565,120
------------
24,887,006
------------
GEORGIA 1.1%
5,438 Cobb Cnty, GA Dev Auth Rev Grantor Trust Ctfs
Franklin Forest Ser A......................... 8.000 06/01/22 5,519,062
4,000 Muni Elec Auth GA Proj One Subser A (AMBAC
Insd)......................................... 6.250 01/01/14 4,231,880
------------
9,750,942
------------
</TABLE>

See Notes to Financial Statements

7
<PAGE> 9

PORTFOLIO OF INVESTMENTS (CONTINUED)

February 28, 1997 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par Amount
(000) Description Coupon Maturity Market Value
- ---------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
ILLINOIS 11.9%
$ 4,920 Bedford Park, IL Tax Increment Rev Sr Lien
Bedford City Sq Proj.......................... 9.250% 02/01/12 $ 5,550,596
2,500 Chicago, IL O'Hare Intl Arpt Spl Fac Rev
American Airls Inc Proj Rfdg.................. 8.200 12/01/24 2,955,875
7,475 Chicago, IL O'Hare Intl Arpt Spl Fac Rev
United Airls Inc.............................. 8.400 05/01/04 8,099,835
10,600 Chicago, IL O'Hare Intl Arpt Spl Fac Rev
United Airls Inc (c).......................... 8.500 05/01/18 11,653,534
4,555 Chicago, IL O'Hare Intl Arpt Spl Fac Rev
United Airls Inc Ser A........................ 8.400 05/01/18 4,941,218
4,590 Chicago, IL O'Hare Intl Arpt Spl Fac Rev
United Airls Inc Ser B........................ 8.950 05/01/18 5,209,788
1,200 Hodgkins, IL Tax Increment.................... 9.500 12/01/09 1,398,948
3,500 Hodgkins, IL Tax Increment (Prerefunded @
12/01/01)..................................... 9.500 12/01/09 4,345,320
4,000 Hodgkins, IL Tax Increment Rev Ser A Rfdg..... 7.625 12/01/13 4,148,520
2,500 Illinois Dev Fin Auth Rev Catholic Charities
Hsg Dev....................................... 6.350 01/01/25 2,497,450
2,000 Illinois Dev Fin Auth Solid Waste Disposal
Rev........................................... 5.950 12/01/24 1,980,200
4,000 Illinois Edl Fac Auth Rev Lewis University.... 6.000 10/01/24 3,871,560
2,500 Illinois Hlth Fac Auth Rev Evangelical Hosp
Ser C Rfdg (FSA Insd)......................... 6.750 04/15/12 2,830,125
7,750 Illinois Hlth Fac Auth Rev Fairview Oblig
Group Proj A (Prerefunded @ 10/01/02)......... 9.500 10/01/22.. 9,683,935
4,665 Illinois Hlth Fac Auth Rev Hinsdale Hosp Ser B
Rfdg.......................................... 9.000 11/15/15 5,220,975
1,500 Illinois Hlth Fac Auth Rev Sarah Bush Lincoln
Hlth Cent (Prerefunded @ 5/15/02)............. 7.250 05/15/12 1,707,060
10,000 Illinois Hlth Fac Auth Rev Servantcor Ser A
(Var Rate Cpn) (Prerefunded @ 08/15/01) (c)... 8.000 08/15/21 11,531,900
1,870 Illinois Hsg Dev Auth Rev Homeowner Mtg Subser
A2 (FHA Gtd).................................. 7.125 08/01/26 1,983,864
1,510 Roselle, IL Multi-Family Hsg Rev Waterbury
Apts Ser A Rfdg (GNMA Collateralized)......... 7.000 01/01/25 1,617,361
2,000 Southern IL Univ Rev Cap Apprec Hsg & Aux Fac
Sys A (MBIA Insd)............................. * 04/01/18 593,940
3,800 Winnebago & Boone Cntys, IL Sch Dist No 205
(FSA Insd) (c)................................ 7.125 02/01/01 4,176,542
4,125 Winnebago & Boone Cntys, IL Sch Dist No 205
(FSA Insd).................................... 7.200 02/01/02 4,615,174
4,475 Winnebago & Boone Cntys, IL Sch Dist No 205
(FSA Insd).................................... 7.300 02/01/03 5,103,917
------------
105,717,637
------------
INDIANA 0.9%
2,500 Indiana Bond Bank Spl Pgm Ser F............... 7.150 08/01/15 2,727,200
3,000 Indiana St Dev Fin Auth Indl Dev Rev Unr Rohn
Inc Proj...................................... 7.500 03/01/11 3,056,280
2,000 Plymouth, IN Multi Sch Bldg Corp First Mtg
(Prerefunded @ 01/01/02) (AMBAC Insd)......... 6.750 01/01/13 2,225,460
------------
8,008,940
------------
</TABLE>

See Notes to Financial Statements

8
<PAGE> 10

PORTFOLIO OF INVESTMENTS (CONTINUED)

February 28, 1997 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par Amount
(000) Description Coupon Maturity Market Value
- ---------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
KANSAS 2.5%
$ 20,000 Burlington, KS Pollutn Ctl Rev KS Gas & Elec
Co Proj Rfdg (MBIA Insd)(c)................... 7.000% 06/01/31 $ 22,103,400
------------
KENTUCKY 1.9%
2,000 Ashland, KY Solid Waste Rev Ashland Oil Inc
Proj.......................................... 7.200 10/01/20 2,129,240
4,000 Elsmere, KY Indl Dev Rev Rfdg................. 6.750 04/01/10 4,136,840
10,000 Kenton Cnty, KY Arpt Brd Arpt Rev Spl Fac
Delta Airls Proj Ser A........................ 7.125 02/01/21 10,647,600
------------
16,913,680
------------
LOUISIANA 1.6%
825 East Baton Rouge, LA Mtg Fin Auth Single
Family Mtg Pur Ser A Rfdg (GNMA
Collateralized) (c)........................... 7.100 10/01/24 867,982
7,130 East Baton Rouge, LA Mtg Fin Auth Single
Family Mtg Pur Ser C Rfdg (GNMA Insd)......... 7.000 04/01/32 7,430,387
2,000 New Orleans, LA Rfdg (AMBAC Insd)............. * 09/01/16 669,780
15,700 Orleans Parish, LA Sch Brd Rfdg (FGIC Insd)... * 02/01/15 5,653,570
------------
14,621,719
------------
MAINE 0.1%
1,000 Maine Vets Homes Rev.......................... 7.750 10/01/20 1,057,260
------------
MARYLAND 1.8%
2,300 Baltimore, MD Cap Apprec Cons Pub Impt Rfdg
(FGIC Insd)................................... * 10/15/06 1,435,706
3,920 Baltimore, MD Cap Apprec Cons Pub Impt Rfdg
(FGIC Insd)................................... * 10/15/07 2,305,352
139,445 Maryland St Cmnty Dev Admin Dept Hsg & Cmnty
Dev Single Family Rev Pgm 6................... * 04/01/30 12,458,016
------------
16,199,074
------------
MASSACHUSETTS 0.8%
2,600 Massachusetts St Hlth & Edl Fac Auth Rev Med
Cent of Central MA............................ 7.100 07/01/21 2,770,976
3,000 Massachusetts St Hlth & Edl Fac Auth Rev New
England Med Cent Hosp Ser G (Embedded Swap)
(MBIA Insd) (d)............................... 3.100 07/01/13 2,646,630
1,375 Massachusetts St Hlth & Edl Fac Auth Rev
Winchester Hosp Ser D Rfdg (Connie Lee
Insd)......................................... 5.750 07/01/14 1,393,714
------------
6,811,320
------------
MICHIGAN 1.0%
2,000 Michigan Muni Bond Auth Rev Loc Govt Ln Ser
C-A
(FSA Insd).................................... * 06/15/13 814,340
1,900 Michigan St Hosp Fin Auth Rev Saratoga Cmnty
Hosp Rfdg..................................... 8.750 06/01/10 2,133,206
5,000 Portage Lake, MI Wtr & Swr Auth Ser II
(Prerefunded @ 10/01/02)...................... 7.625 10/01/20 5,822,250
------------
8,769,796
------------
</TABLE>

See Notes to Financial Statements

9
<PAGE> 11

PORTFOLIO OF INVESTMENTS (CONTINUED)

February 28, 1997 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par Amount
(000) Description Coupon Maturity Market Value
- ---------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MISSISSIPPI 0.4%
$ 1,000 Claiborne Cnty, MS Pollutn Ctl Rev Sys Energy
Res Inc Rfdg.................................. 7.300% 05/01/25 $ 1,048,470
2,000 Mississippi Home Corp Single Family Rev Mtg Ser F
(GNMA Collateralized) (d)..................6.000/7.550 12/01/27 2,216,560
------------
3,265,030
------------
MISSOURI 1.3%
1,740 Good Shepherd Nursing Home Dist MO Nursing
Home
Fac Rev....................................... 7.625 08/15/15 1,786,945
2,730 Good Shepherd Nursing Home Dist MO Nursing
Home
Fac Rev....................................... 7.750 08/15/25 2,813,265
3,750 Hannibal, MO Indl Dev Auth Hlth Fac Rev
Hannibal Regl Hlthcare Sys Inc (Prerefunded @
09/01/01)..................................... 9.500 03/01/22 4,659,038
2,000 Sikeston, MO Elec Rev Rfdg (MBIA Insd)........ 5.000 06/01/11 1,955,000
------------
11,214,248
------------
MONTANA 0.5%
3,900 Montana St Coal Severance Tax Broadwater Pwr
Proj Ser A Rfdg............................... 6.875 12/01/17 4,152,408
------------
NEVADA 0.4%
975 Henderson, NV Loc Impt Dist No T-4 Ser A...... 8.500 11/01/12 1,022,161
865 Nevada Hsg Division Multi Unit Hsg Saratoga
Palms (FNMA Insd)............................. 6.250 10/01/16 879,471
1,750 Nevada St Rfdg................................ 4.375 08/01/03 1,728,738
------------
3,630,370
------------
NEW JERSEY 5.7%
1,515 Eastern Camden Cnty, NJ Regl Sch Dist Rfdg
(FGIC Insd)................................... * 03/01/99 1,395,042
1,000 Eastern Camden Cnty, NJ Regl Sch Dist Rfdg
(FGIC Insd)................................... * 03/01/00 878,570
1,000 Eastern Camden Cnty, NJ Regl Sch Dist Rfdg
(FGIC Insd)................................... * 03/01/02 798,260
1,000 Eastern Camden Cnty, NJ Regl Sch Dist Rfdg
(FGIC Insd)................................... * 03/01/03 763,140
1,000 Eastern Camden Cnty, NJ Regl Sch Dist Rfdg
(FGIC Insd)................................... * 03/01/04 724,580
1,460 Eastern Camden Cnty, NJ Regl Sch Dist Rfdg
(FGIC Insd)................................... * 03/01/05 1,002,494
1,465 Eastern Camden Cnty, NJ Regl Sch Dist Rfdg
(FGIC Insd)................................... * 03/01/06 951,386
1,615 Eastern Camden Cnty, NJ Regl Sch Dist Rfdg
(FGIC Insd)................................... * 03/01/07 990,011
1,555 Eastern Camden Cnty, NJ Regl Sch Dist Rfdg
(FGIC Insd)................................... * 03/01/08 898,044
10,000 New Jersey Econ Dev Auth Wtr Fac Rev (FGIC
Insd)......................................... 6.500 04/01/22 10,698,200
25,000 New Jersey Econ Dev Auth St Contract Econ
Recovery (Embedded Cap) (MBIA Insd)........... 5.900 03/15/21 26,324,000
5,000 Union Cnty, NJ Util Auth Solid Waste Rev Ser
A............................................. 7.150 06/15/09 5,150,700
------------
50,574,427
------------
NEW MEXICO 0.1%
894 Santa Fe, NM Single Family Mtg Rev Rfdg....... 8.450 12/01/11 953,580
------------
</TABLE>

See Notes to Financial Statements

10
<PAGE> 12

PORTFOLIO OF INVESTMENTS (CONTINUED)

February 28, 1997 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par Amount
(000) Description Coupon Maturity Market Value
- ---------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
NEW YORK 15.0%
$ 4,000 Herkimer Cnty, NY Indl Dev Agy Indl Dev Rev
Burrows Paper Corp Recycling.................. 8.000% 01/01/09 $ 3,945,040
5,550 Metropolitan Tran Auth NY Svcs Contract
Commuter Fac Ser N Rfdg....................... 6.000 07/01/11 5,546,837
4,000 Metropolitan Tran Auth NY Svcs Contract Tran
Fac........................................... 7.000 07/01/09 4,316,720
1,900 Metropolitan Tran Auth NY Svcs Contract Tran
Fac Ser N Rfdg................................ 6.000 07/01/11 1,898,917
5,000 New York City Adjustment Adjusted Subser A1... 6.425 08/01/12 4,698,250
1,275 New York City Prerefunded Series A............ 7.750 08/15/12 1,462,961
435 New York City Prerefunded Series C............ 7.100 08/15/10 482,511
225 New York City Unrefunded Balance Series A..... 7.750 08/15/12 250,416
1,065 New York City Unrefunded Balance Series C..... 7.100 08/15/10 1,127,079
2,000 New York City Hlth & Hosp Corp Rev Ser A Rfdg
(AMBAC Insd).................................. 5.750 02/15/22 1,985,540
7,000 New York City Ser B........................... 7.500 02/01/05 7,774,410
7,000 New York City Ser E Rfdg (c).................. 5.500 02/15/08 6,920,480
2,585 New York City Ser F........................... 8.250 11/15/02 2,959,670
5,000 New York St Dorm Auth Rev City Univ Ser F..... 5.500 07/01/12 4,863,350
6,800 New York St Dorm Auth Rev Cons City Univ Sys
Ser A......................................... 5.625 07/01/16 6,697,048
7,055 New York St Dorm Auth Rev Court Fac Lease Ser
A............................................. 5.250.. 05/15/21 6,312,955
4,250 New York St Energy Resh & Dev Auth Fac Rev
Cons Edison Co Proj Ser B Rfdg (MBIA Insd).... 5.250 08/15/20 3,959,980
3,000 New York St Energy Resh & Dev Auth St Svc
Contract Rev Westn NY Nuclear Svc Cent Proj... 5.400 04/01/98 3,042,990
3,000 New York St Environmental Fac Corp Pollutn
Ctrl Rev...................................... 5.200 05/15/14 2,961,480
7,375 New York St Environmental Fac Corp Pollutn Ctl
Rev St Wtr Revolving Fund Ser E............... 6.700 06/15/10 8,132,486
2,920 New York St Med Care Fac Fin Agy Rev Mental
Hlth Svcs Fac Ser D........................... 7.400 02/15/18 3,208,700
7,725 New York St Med Care Fac Fin Agy Rev Mental
Hlth Svcs Fac Ser D (Prerefunded 02/15/02).... 7.400 02/15/18 8,837,245
1,500 New York St Mtg Agy Rev Homeowner Mtg Ser
59............................................ 6.250 04/01/27 1,556,295
19,000 New York St Urban Dev Corp Rev St Fac
(Prerefunded @ 04/01/01)(c)................... 7.500 04/01/11 21,588,750
3,000 Onondaga Cnty, NY Indl Dev Agy Swr Fac Rev
Bristol-Meyers Squibb Co Proj (MBIA Insd)..... 5.750 03/01/24 3,113,460
5,000 Port Auth NY & NJ Cons 109th Ser.............. 5.375 01/15/32 4,772,900
4,000 Port Auth NY & NJ Cons One Hundred Ninth
Ser........................................... 5.375 07/15/22 3,886,480
3,375 Port Auth, NY & NJ Cons 102nd Ser (MBIA
Insd)......................................... 5.600 10/15/11 3,429,371
4,000 Upper Mohawk Vly Reg Wrt Fin NY Ser A (FSA
Insd)......................................... 5.125 10/01/26 3,707,680
------------
133,440,001
------------
</TABLE>

See Notes to Financial Statements

11
<PAGE> 13

PORTFOLIO OF INVESTMENTS (CONTINUED)

February 28, 1997 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par Amount
(000) Description Coupon Maturity Market Value
- ---------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
NORTH CAROLINA 3.3%
$ 5,000 North Carolina Eastn Muni Pwr Agy Pwr Sys Rev
(MBIA Insd)................................... 5.700% 01/01/13 $ 5,049,350
10,000 North Carolina Eastn Muni Pwr Agy Pwr Sys Rev
Ser B Rfdg (Embedded Cap)..................... 6.000 01/01/14 9,941,500
13,300 North Carolina Muni Pwr Agy No 1 Catawba Elec
Rev (Embedded Cap) (MBIA Insd) (c)............ 6.000 01/01/12 14,382,753
------------
29,373,603
------------
OHIO 1.4%
5,375 Franklin Cnty, OH Hosp Rev Holy Cross Hlth Sys
Ser B Rfdg (MBIA Insd)........................ 5.250 06/01/10 5,366,938
1,500 Gateway Econ Dev Corp Gtr Cleveland OH Stadium
Rev........................................... 6.500 09/15/14 1,515,195
2,000 Montgomery Cnty, OH Hosp Rev Dayton
Osteopathic Hosp Proj Rfdg.................... 6.000 12/01/12 1,958,920
2,270 Montgomery Cnty, OH Hosp Rev Kettering Med
Cent (MBIA Insd).............................. 6.250 04/01/20 2,486,240
1,000 Ohio St Air Quality Dev Auth Rev JMG Funding
Ltd Partnership Proj Rfdg (AMBAC Insd)........ 6.375 04/01/29 1,066,400
------------
12,393,693
------------
OKLAHOMA 2.5%
2,000 Cent Oklahoma Tran + Pkg Auth Rfdg Pkg Sys
(FSA Insd).................................... 5.250 07/01/16 1,928,080
3,595 Cleveland Cnty, OK Home Ln Auth Single Family
Mtg
Rev Rfdg...................................... 8.000 08/01/12 3,831,407
1,240 Kay Cnty, OK Home Fin Auth Rev Single Family
Mtg Ser A Rfdg (AMBAC Insd)................... 7.000 11/01/11 1,361,384
9,260 Oklahoma Hsg Fin Agy Single Family Rev Mtg
Class B (GNMA Collateralized)................. 7.997 08/01/18 10,355,736
3,000 Tulsa, OK Indl Auth Hosp Rev Tulsa Regl Med
Cent (Prerefunded @ 06/01/03)................. 7.200 06/01/17 3,446,250
1,500 Tulsa, OK Muni Arpt Tran Rev American Airls
Inc........................................... 7.600 12/01/30 1,623,735
------------
22,546,592
------------
PENNSYLVANIA 2.4%
2,650 Butler Cnty, PA Hosp Auth Hosp Rev Butler Mem
Hosp Ser A (FSA Insd)......................... 5.250 07/01/12 2,584,413
2,165 Clarion Cnty, PA Hosp Auth Hosp Rev Clarion
Hosp Proj..................................... 8.500 07/01/21 2,386,241
10,000 Geisinger Auth PA Hlth Sys Ser A.............. 6.400 07/01/22 10,350,500
2,000 Montgomery Cnty, PA Indl Dev Auth Retirement
Cmnty Rev Adult Cmntys Total Svcs Ser B....... 5.625 11/15/12 1,965,040
4,000 Montgomery Cnty, PA Indl Dev Auth Retirement
Cmnty Rev Adult Cmntys Total Svcs Ser B....... 5.750 11/15/17 3,898,080
------------
21,184,274
------------
</TABLE>

See Notes to Financial Statements

12
<PAGE> 14

PORTFOLIO OF INVESTMENTS (CONTINUED)

February 28, 1997 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par Amount
(000) Description Coupon Maturity Market Value
- ---------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
RHODE ISLAND 1.5%
$ 2,450 Providence, RI Redev Agy Ctfs Partn Ser A..... 8.000% 09/01/24 $ 2,587,568
3,470 Rhode Island Hsg & Mtg Fin Corp Homeownership
Oppty
Ser 3......................................... 8.050 04/01/22 3,645,235
4,750 Rhode Island Hsg & Mtg Fin Corp Ser 8 (Inverse
Fltg)......................................... 10.387 04/01/24 5,171,562
2,000 Rhode Island St Hlth & Edl Bldg Corp Rev
Higher Edl Fac Roger Williams (Connie Lee
Insd)......................................... 7.250 11/15/24 2,362,420
------------
13,766,785
------------
TENNESSEE 0.5%
4,228 Shelby Cnty, TN Hlth Edl & Hsg Fac Brd Rev
Multi-Family Mtg Rock Creek Plaza Rfdg (GNMA
Collateralized)............................... 7.375 01/20/27 4,518,859
------------
TEXAS 7.1%
4,500 Alliance Arpt Auth Inc TX Spl Fac Rev American
Airls
Inc Proj...................................... 7.500 12/01/29 4,815,990
6,000 Brazos River Auth TX Pollutn Ctl Rev Coll TX
Util Elec Co Proj A (AMBAC Insd).............. 6.750 04/01/22 6,462,840
450 Brazos, TX Higher Edl Auth Inc Student Ln Rev
Subser C2 Rfdg................................ 7.100 11/01/04 495,428
5,000 Coastal Bend Hlth Fac Dev (AMBAC Insd)........ 5.929 11/15/13 5,063,850
15,000 Dallas-Fort Worth, TX Intl Arpt Fac Impt Corp
Rev American Airls Inc(c)..................... 7.500 11/01/25 16,054,950
3,600 Dallas-Fort Worth, TX Intl Arpt Fac Impt Corp
Rev Delta Airls Inc........................... 7.625 11/01/21 3,906,000
2,615 Fort Worth, TX Hsg Fin Corp Home Mtg Rev Ser A
Rfdg.......................................... 8.500 10/01/11 2,851,788
1,869 Texas Genl Svcs Comm Partn Int Lease Pur
Ctfs.......................................... 7.250 08/15/11 1,900,401
21,270 Texas St Pub Ppty Fin Corp Rev Mental Hlth &
Retardation Rfdg (FSA Insd)(c)................ 5.250 09/01/08 21,371,245
------------
62,922,492
------------
UTAH 2.5%
3,955 Bountiful, UT Hosp Rev South Davis Cmnty Hosp
Proj.......................................... 9.500 12/15/18 4,384,513
14,855 Murray City, UT Hosp Rev Inc Hlth Svc Inc Rfdg
(MBIA Insd)................................... 4.750 05/15/20 12,852,249
3,000 Salt Lake City, UT Hosp Rev IHC Hosp Inc Rfdg
(Embedded Cap)................................ 5.500 02/17/97 2,911,530
1,660 Utah St Hsg Fin Agy Single Family Mtg Insd Ser
E2 (FHA Gtd).................................. 7.150 07/01/24 1,740,062
------------
21,888,354
------------
</TABLE>

See Notes to Financial Statements

13
<PAGE> 15

PORTFOLIO OF INVESTMENTS (CONTINUED)

February 28, 1997 (Unaudited)
- --------------------------------------------------------------------------------

See Notes to Financial Statements

14
<PAGE> 16

PORTFOLIO OF INVESTMENTS (CONTINUED)

February 28, 1997 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par Amount
(000) Description Coupon Maturity Market Value
- ---------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
TOTAL LONG-TERM INVESTMENTS 95.4%
(Cost $795,248,390) (a)..................................................... $849,348,413
SHORT-TERM INVESTMENTS AT AMORTIZED COST 3.4%................................ 30,800,000
OTHER ASSETS IN EXCESS OF LIABILITIES 1.2%................................... 10,543,513
------------
NET ASSETS 100%.............................................................. $890,691,926
============
*Zero coupon bond
(a) At February 28, 1997, cost for federal income tax purposes is
$795,248,390; the aggregate gross unrealized appreciation is $54,753,358
and the aggregate gross unrealized depreciation is $653,335, resulting
in net unrealized appreciation including options and futures
transactions of $54,100,023.
(b) Securities purchased on a when issued or delayed delivery basis.
(c) Assets segregated as collateral for when issued or delayed delivery
purchase commitments, open option and open futures transactions.
(d) Security is a "Step-up" bond where the coupon increases or steps up at a
predetermined date.
</TABLE>

See Notes to Financial Statements

15
<PAGE> 17

STATEMENT OF ASSETS AND LIABILITIES

February 28, 1997 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Long-Term Investments, at Market Value (Cost $795,248,390)
(Note 1).................................................. $849,348,413
Short-Term Investments (Note 1)............................. 30,800,000
Cash........................................................ 717,196
Receivables:
Interest.................................................. 13,257,315
Securities Sold........................................... 295,000
Other....................................................... 15,736
------------
Total Assets.......................................... 894,433,660
------------
LIABILITIES:
Payables:
Securities Purchased...................................... 2,374,559
Income Distributions - Common and Preferred Shares........ 510,988
Investment Advisory Fee (Note 2).......................... 478,819
Administrative Fee (Note 2)............................... 136,805
Variation Margin on Futures............................... 31,250
Affiliates (Note 2)....................................... 13,155
Accrued Expenses............................................ 140,703
Deferred Compensation and Retirement Plans (Note 2)......... 55,455
------------
Total Liabilities..................................... 3,741,734
------------
NET ASSETS.................................................. $890,691,926
============
NET ASSETS CONSIST OF:
Preferred Shares ($.01 par value, authorized 100,000,000
shares, 6,000 issued
with liquidation preference of $50,000 per share) (Note
5)........................................................ $300,000,000
------------
Common Shares ($.01 par value with an unlimited number of
shares authorized,
36,270,469 shares issued and outstanding)................. 362,705
Paid in Surplus............................................. 536,860,572
Net Unrealized Appreciation on Securities................... 54,054,660
Accumulated Undistributed Net Investment Income............. 3,216,103
Accumulated Net Realized Loss on Securities................. (3,802,114)
------------
Net Assets Applicable to Common Shares................ 590,691,926
------------
NET ASSETS.................................................. $890,691,926
============
NET ASSET VALUE PER COMMON SHARE ($590,691,926 divided
by 36,270,469 shares outstanding)......................... $ 16.29
============
</TABLE>

See Notes to Financial Statements

16
<PAGE> 18

STATEMENT OF OPERATIONS

For the Six Months Ended February 28, 1997 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest.................................................... $27,748,630
-----------
EXPENSES:
Investment Advisory Fee (Note 2)............................ 3,074,652
Administrative Fee (Note 2)................................. 878,472
Preferred Share Maintenance (Note 5)........................ 401,982
Custody..................................................... 58,462
Legal (Note 2).............................................. 27,150
Trustees Fees and Expenses (Note 2)......................... 13,165
Amortization of Organizational Expenses (Note 1)............ 707
Other....................................................... 178,091
-----------
Total Expenses.......................................... 4,632,681
-----------
NET INVESTMENT INCOME....................................... $23,115,949
===========
REALIZED AND UNREALIZED GAIN/LOSS ON SECURITIES:
Realized Gain/Loss on Securities:
Investments............................................... $ 3,254,450
Futures................................................... 1,516,916
-----------
Net Realized Gain on Securities............................. 4,771,366
-----------
Unrealized Appreciation/Depreciation on Securities:
Beginning of the Period................................... 43,230,522
-----------
End of the Period:
Investments............................................. 54,100,022
Futures................................................. (45,362)
-----------
54,054,660
-----------
Net Unrealized Appreciation on Securities During the
Period.................................................... 10,824,138
-----------
NET REALIZED AND UNREALIZED GAIN ON SECURITIES.............. $15,595,504
===========
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $38,711,453
===========
</TABLE>

See Notes to Financial Statements

17
<PAGE> 19

STATEMENT OF CHANGES IN NET ASSETS

For the Six Months Ended February 28, 1997
and the Year Ended August 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Six Months Ended Year Ended
February 28, 1997 August 31, 1996
- --------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income.................................. $ 23,115,949 $ 46,970,003
Net Realized Gain/Loss on Securities................... 4,771,366 (766,198)
Net Unrealized Appreciation on Securities During the
Period............................................... 10,824,138 4,555,031
------------ ------------
Change in Net Assets from Operations................... 38,711,453 50,758,836
------------ ------------
Distributions from Net Investment Income:
Common Shares........................................ (17,409,173) (35,906,819)
Preferred Shares..................................... (5,196,215) (10,943,347)
------------ ------------
Total Distributions.................................. (22,605,388) (46,850,166)
------------ ------------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES.... 16,106,065 3,908,670
NET ASSETS:
Beginning of the Period................................ 874,585,861 870,677,191
------------ ------------
End of the Period (Including accumulated undistributed
net investment income of $3,216,103 and $2,705,542,
respectively)........................................ $890,691,926 874,585,861
============ ============
</TABLE>

See Notes to Financial Statements

18
<PAGE> 20

FINANCIAL HIGHLIGHTS

The following schedule presents financial highlights for one common share
of the Trust outstanding throughout the periods indicated. (Unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
September 27, 1991
(Commencement
Year Ended August 31 of Investment
Six Months Ended ------------------------------------- Operations) to
February 28, 1997 1996 1995 1994 1993 August 31, 1992
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------
Net Asset Value,
Beginning of the Period (a)..... $15.842 $15.734 $15.562 $17.035 $16.328 $14.808
------- ------- ------- ------- ------- -------
Net Investment Income........... .637 1.295 1.311 1.347 1.410 1.166
Net Realized and Unrealized
Gain/Loss on Securities....... .430 .105 .266 (1.424) .780 1.370
------- ------- ------- ------- ------- -------
Total from Investment
Operations...................... 1.067 1.400 1.577 (.077) 2.190 2.536
------- ------- ------- ------- ------- -------
Less:
Distributions from Net
Investment Income:
Paid to Common Shareholders... .480 .990 1.084 1.116 1.100 .811
Common Share Equivalent of
Distributions Paid to
Preferred Shareholders...... .143 .302 .321 .280 .246 .205
Distributions from Net Realized
Gain on Securities:
Paid to Common Shareholders... -0- -0- -0- -0- .111 -0-
Common Share Equivalent of
Distributions Paid to
Preferred Shareholders...... -0- -0- -0- -0- .026 -0-
------- ------- ------- ------- ------- -------
Total Distributions.............. .623 1.292 1.405 1.396 1.483 1.016
------- ------- ------- ------- ------- -------
Net Asset Value, End of the
Period.......................... $16.286 $15.842 $15.734 $15.562 $17.035 $16.328
======= ======= ======= ======= ======= =======
Market Price Per Share at End of
the Period...................... $14.750 $14.500 $14.250 $15.000 $16.750 $16.125
Total Investment Return at Market
Price (b)....................... 4.24%* 8.98% 2.39% (3.94%) 11.90% 13.24%*
Total Return at Net Asset Value
(c)............................. 5.92%* 7.09% 8.55% (2.22%) 12.31% 14.64%*
Net Assets at End of the Period
(In millions)................... $890.7 $874.6 $870.7 $864.4 $917.9 $891.7
Ratio of Expenses to Average Net
Assets Applicable to Common
Shares.......................... 1.58% 1.61% 1.65% 1.64% 1.59% 1.49%
Ratio of Expenses to Average
Net Assets...................... 1.04% 1.06% 1.07% 1.09% 1.06% 1.03%
Ratio of Net Investment Income to
Average Net Assets Applicable to
Common Shares (d)............... 6.11% 6.20% 6.48% 6.52% 7.08% 6.85%
Portfolio Turnover............... 23%* 36% 49% 47% 48% 100%*
</TABLE>

(a) Net Asset Value at September 27, 1991, is adjusted for common and preferred
share offering costs of $.192 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 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.

* Non-Annualized

See Notes to Financial Statements

19
<PAGE> 21

NOTES TO FINANCIAL STATEMENTS

February 28, 1997 (Unaudited)
- --------------------------------------------------------------------------------

1. SIGNIFICANT ACCOUNTING POLICIES

Van Kampen American Capital 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 income tax, consistent with
preservation of capital. The Trust will invest in a portfolio consisting
substantially of municipal obligations rated investment grade at the time of
investment, but may invest up to 20% of its assets in unrated securities which
are believed to be of comparable quality to those rated investment grade. The
Trust commenced investment operations on September 27, 1991.

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.

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.

20
<PAGE> 22

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

February 28, 1997 (Unaudited)
- --------------------------------------------------------------------------------

D. ORGANIZATIONAL EXPENSES--The Fund reimbursed Van Kampen American Capital
Distributors, Inc. or its affiliates (collectively "VKAC") for costs incurred in
connection with the Fund's organization in the amount of $50,000. These costs
were amortized on a straight line basis over the 60 month period ended September
26, 1996.

E. 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.

The Trust intends to utilize provisions of the federal income tax laws which
allow it to carry a realized capital loss forward for eight years following the
year of the loss and offset such losses against any future realized capital
gains. At August 31, 1996, the Trust had an accumulated capital loss
carryforward for tax purposes of $5,692,062 which will expire between December
31, 2001 and December 31, 2004. Net realized loss differs for financial and tax
reporting purposes primarily as a result of gains or losses recognized for tax
purposes on open option and futures positions.

F. DISTRIBUTION OF INCOME AND GAINS--The Trust declares and pays dividends from
net investment income to common shareholders monthly. 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.

2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Under the terms of the Trust's Investment Advisory Agreement, Van Kampen
American Capital Investment Corp. (the "Adviser") will provide investment advice
and facilities to the Trust for an annual fee payable monthly of .70% of the
average net assets of the Trust. In addition, the Trust will pay a monthly
administrative fee to VKAC, the Trust's Administrator, at an annual rate of.20%
of the average net assets of the Trust. The administrative services provided by
the Administrator include record keeping and reporting responsibilities with
respect to the Trust's portfolio and preferred shares and providing certain
services to shareholders.

Certain legal expenses are paid to Skadden, Arps, Slate, Meagher & Flow
(Illinois), counsel to the Trust, of which a trustee of the Trust is an
affiliated person.

21
<PAGE> 23

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

February 28, 1997 (Unaudited)
- --------------------------------------------------------------------------------

For the six months ended February 28, 1997, the Trust recognized expenses of
approximately $19,700 representing VKAC's cost of providing accounting and legal
services to the Trust.

Certain officers and trustees of the Trust are also officers and directors
of VKAC. The Trust does not compensate its officers or trustees who are officers
of VKAC.

The Trust has implemented deferred compensation and retirement plans for its
trustees. Under the deferred compensation plan, trustees may elect to defer all
or a portion of their compensation to a later date. The retirement plan covers
those trustees who are not officers of VKAC.

3. INVESTMENT TRANSACTIONS

During the period, the cost of purchases and proceeds from sales of investments,
excluding short-term investments, were $205,915,924 and $233,787,228,
respectively.

4. DERIVATIVE FINANCIAL INSTRUMENTS

A derivative financial instrument in very general terms refers to a security
whose value is "derived" from the value of an underlying asset, reference rate
or index.

The Trust has a variety of reasons to use derivative instruments, such as to
attempt to protect the Trust against possible changes in the market value of its
portfolio and to manage the portfolio's effective yield, maturity and duration.
All of the Trust's portfolio holdings, including derivative instruments, are
marked to market each day with the change in value reflected in the unrealized
appreciation/depreciation on securities. Upon disposition, a realized gain or
loss is recognized accordingly, except for exercised option contracts where the
recognition of gain or loss is postponed until the disposal of the security
underlying the option contract.

Summarized below are the specific types of derivative financial instruments
used by the Trust.

A. OPTION CONTRACTS--An option contract gives the buyer the right, but not the
obligation to buy (call) or sell (put) an underlying item at a fixed exercise
price during a specified period. These contracts are generally used by the Trust
to manage the portfolio's effective maturity and duration.

22
<PAGE> 24

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

February 28, 1997 (Unaudited)
- --------------------------------------------------------------------------------

Transactions in options for the six months ended February 28, 1997, were as
follows:

<TABLE>
<CAPTION>
CONTRACTS PREMIUM
- ---------------------------------------------------------------------------
<S> <C> <C>
Outstanding at August 31, 1996................... 500 $ (86,068)
Options Written and Purchased (Net).............. 10,000 657,254
Options Terminated in Closing Transactions
(Net).......................................... (4,200) (581,753)
Options Expired (Net)............................ (6,300) 10,567
----- ---------
Outstanding at February 28, 1997................. 0 $ 0
===== =========
</TABLE>

B. FUTURES CONTRACTS--A futures contract is an agreement involving the delivery
of a particular asset on a specified future date at an agreed upon price. The
Trust generally invests in futures on U.S. Treasury Bonds and the Municipal Bond
Index and typically closes the contract prior to the delivery date. These
contracts are generally used to manage the portfolio's effective maturity and
duration.

Upon entering into futures contracts, the Fund maintains, in a segregated
account with its custodian, securities with a value equal to its obligation
under the futures contracts. During the period the futures contract is open,
payments are received from or made to the broker based upon changes in the value
of the contract (the variation margin). The cost of securities acquired through
delivery under a contract is adjusted by the unrealized gain or loss on the
contract.

Transactions in futures contracts for the six months ended February 28,
1997, were as follows:

<TABLE>
<CAPTION>
CONTRACTS
- ------------------------------------------------------------------------
<S> <C>
Outstanding at August 31, 1996............................. 2,000
Futures Opened............................................. 900
Futures Closed............................................. (2,700)
-------
Outstanding at February 28, 1997........................... 200
=======
</TABLE>

The futures contracts outstanding as of February 28, 1997, and the
description and unrealized depreciation are as follows:

<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS DEPRECIATION
- -----------------------------------------------------------------------------
<S> <C> <C>
US Treasury Bond Futures
Mar 1997--Sells to Open....................... 200 $45,362
====== =======
</TABLE>

23
<PAGE> 25

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

February 28, 1997 (Unaudited)
- --------------------------------------------------------------------------------

C. INDEXED SECURITIES--These instruments are identified in the portfolio of
investments. The price of these securities may be more volatile than the price
of a comparable fixed rate security.

An Inverse Floating security is one where the coupon is inversely indexed to
a short-term floating interest rate multiplied by a specified factor. As the
floating rate rises, the coupon is reduced. Conversely, as the floating rate
declines, the coupon is increased. These instruments are typically used by the
Trust to enhance the yield of the portfolio.

An Embedded Cap security includes a cap strike level such that the coupon
payment may be supplemented by cap payments if the floating rate index upon
which the cap is based rises above the strike level. The Trust invests in these
instruments as a hedge against a rise in the short-term interest rates which it
pays on its preferred shares.

An Embedded Swap security includes a swap component such that the fixed
coupon component of the underlying bond is adjusted by the difference between
the security's fixed swap rate and the floating swap index. As the floating rate
rises, the coupon is reduced. Conversely, as the floating rate declines, the
coupon is increased. The Trust invests in these instruments as a hedge against a
rise in the short-term interest rates which it pays its preferred shares.

5. PREFERRED SHARES

The Trust has outstanding 6,000 Auction Preferred Shares ("APS") in four series
of 1,500 shares each. Dividends are cumulative and the dividend rate is
periodically reset through an auction process. The dividend periods for Series A
and Series C are 7 days, while Series B and Series D are 28 days. The average
rate in effect on February 28, 1997, was 3.39%. During the six months ended
February 28, 1997, the rates ranged from 3.10% to 5.20%.

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 APS 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 APS are subject to
mandatory redemption if the tests are not met.

24
<PAGE> 26
VAN KAMPEN AMERICAN CAPITAL MUNICIPAL TRUST

BOARD OF TRUSTEES

DAVID C. ARCH

ROD DAMMEYER

HOWARD J KERR

DENNIS J. MCDONNELL* - Chairman

THEODORE A. MYERS

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 AMERICAN CAPITAL
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.

SM denotes a service mark of
Van Kampen American Capital Distributors, Inc.

RESULTS OF SHAREHOLDER VOTES

A Special Meeting of Shareholders of the Trust was held on October 23, 1996,
where shareholders voted on a new investment advisory agreement and changes to
investment policies. With regard to the approval of a new investment advisory
agreement between Van Kampen American Capital Investment Advisory Corp. and the
Trust, 28,097,793 shares voted for the proposal, 622,320 shares voted against,
762,522 shares abstained and 2,025,168 shares represented broker non-votes. With
regard to the approval of certain changes to the Trust's fundamental investment
policies with respect to investments in other investment companies, 14,700,310
shares voted for the proposal, 887,645 shares voted against, 918,499 shares
abstained and 15,041,349 shares represented broker non-votes.