<PAGE> 1
TABLE OF CONTENTS
<TABLE>
<S> <C>
Letter to Shareholders........................... 1
Glossary of Terms................................ 5
Performance Results.............................. 7
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.................... 15
Report of Independent Accountants................ 19
Dividend Reinvestment Plan....................... 20
</TABLE>
VOQ ANR 10/98
<PAGE> 2
LETTER TO SHAREHOLDERS
September 21, 1998
Dear Shareholder,
Recently, we decided to consolidate
all Van Kampen American Capital 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 Inc. Consequently, your
Trust's name was changed to Van Kampen [PHOTO]
Ohio Quality Municipal Trust on August
28. You can be assured that the change DENNIS J. MCDONNELL AND DON G. POWELL
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 investment
or our new name, please contact your financial adviser.
ECONOMIC OVERVIEW
The economy grew at a moderate rate for much of the past year, accompanied
by low inflation. During the three quarters that ended June 30, growth
accelerated at a 3.4 percent annual rate, while consumer prices rose 1.4
percent.
Beneath this tranquil scenario, however, lay periods of economic and
financial volatility. During the first quarter, for example, growth surged at a
5.5 percent annual rate, fueled by heavy consumer spending and business
inventory buildup. By the second quarter, growth had slowed to a sluggish 1.6
percent annual pace, due to the deepening Asian economic crisis and the General
Motors strike.
Despite the weakening economy, the dollar rallied as foreign investors
sought refuge from global turmoil by purchasing U.S. Treasury securities. The
strong dollar raised the price of U.S. exports and cut the price of imports. As
a result, U.S. companies found they could neither maintain their foreign sales
nor compete easily with cheap imports here. Corporate earnings fell, and U.S.
stock prices retreated. By August 31, the Dow Jones Industrial Average was down
19 percent from its mid-July high.
In Ohio, growth was enhanced by further diversification of the economy and a
reduction in its dependence on the manufacturing sector. As a result, state
fiscal reserves rebounded to levels not seen since 1990-91. Looking ahead, Ohio
needs to change its method of school funding, which the Ohio Supreme Court has
rejected as relying too heavily on local property taxes. In May, voters rejected
a proposed one-cent increase in the state sales tax to finance school funding
reform.
Continued on page 2
1
<PAGE> 3
MARKET OVERVIEW
The stock market rout and foreign economic turmoil were nothing but good
news for bonds. The Federal Reserve refrained from raising interest rates to
avoid aggravating Asia's crisis, and investors worldwide aggressively bought
U.S. Treasury securities. Because these purchases occurred at a time when the
supply of new Treasury issues was declining, Treasury bond prices rocketed to
record levels. On August 31, the Dow Jones Industrial Average fell 512 points,
and the 30-year Treasury bond yield, which moves in the opposite direction of
its price, fell to a record low of 5.25 percent. A year earlier, its yield was
6.61 percent.
Municipal bonds followed the gains in Treasuries but, true to form, they
didn't rally as strongly. While long-term Treasury bond yields fell 136 basis
points during the past year, the yield of the AAA-rated general obligation
municipal bond fell only 44 basis points to 4.86 percent on August 31, 1998,
from 5.30 percent a year earlier.
Municipal bonds were hampered by an excess of supply relative to demand.
State and local governments, taking advantage of the market's low interest
rates, issued $190 billion worth of bonds during the first seven months of this
year--47 percent more than they had issued during the comparable period last
year.
Despite an abundant supply from which to choose, U.S. investors were
reluctant to purchase municipal bonds because of their relatively low yields,
and foreign investors had even less interest because they had no need for the
tax-exempt income. Compounding the situation was the flood of insured issues,
which accounted for almost 60 percent of the new supply. As a result, fewer
lower-rated, higher-yielding bonds were issued, and the yield spread between
higher-quality and lower-quality bonds narrowed.
[CREDIT QUALITY GRAPH]
Portfolio Composition by Credit Quality*
As OF August 31, 1998
<TABLE>
<CAPTION>
<S> <C>
AAA.................... 62.4%
AA..................... 3.0%
A...................... 14.5%
BBB.................... 8.4%
Non-Rated............... 11.7%
</TABLE>
*As a Percentage of Long-Term Investments
Based upon the highest quality ratings as issued by Standard & Poor's or
Moody's.
TRUST STRATEGY
We used the following strategies to manage the Trust during the period:
We replaced several bonds that had been called by their issuer. Like most
bonds in the Trust, these bonds were purchased during periods of substantially
higher interest rates. If interest rates remain low, we expect more bonds will
face potential calls. Approximately 33 percent of the current portfolio has been
prerefunded to call dates from 1999 through
Continued on page 3
2
<PAGE> 4
2003. We have not replaced these bonds because their average yield is higher
than current market yields. We continue to seek opportunities to address the
portfolio's call risk.
We purchased long-term bonds in order to extend the call protection of the
Trust. One bond was a noncallable school district issue that was priced at a
premium to its face value; the other was a long-term hospital bond priced at a
discount. Both purchases helped to extend the duration of the Trust, which is a
measure of its price sensitivity to changing interest rates. As of August 31,
the duration of the Trust stood at 4.59 years, compared with 7.26 years for the
Lehman Brothers Municipal Bond Index (excluding bonds maturing in five years or
less).
Our purchases included AAA-rated insured bonds and lower-quality,
higher-yielding bonds. In order to qualify for inclusion in the Trust, all of
the lower-quality bonds were rated the equivalent of BBB or higher by our
research staff. The credit quality of the bonds in the Trust's portfolio remains
high, with most bonds rated A or above by Standard & Poor's and Moody's
Investors Service.
TOP FIVE PORTFOLIO INDUSTRY HOLDINGS BY SECTOR*
AS OF
AUGUST 31, 1998
Health Care............................................. 26.4%
General Purpose......................................... 13.9%
Industrial Revenue...................................... 11.8%
Single-Family Housing................................... 9.8%
Retail Electric/Gas/Telephone........................... 9.0%
*As a Percentage of Long-Term Investments
PERFORMANCE SUMMARY
For the 12-month period ended August 31, 1998, the Trust generated a total
return of 15.39 percent(1) at market price. This reflects a gain in market price
per common share from $17.00 on August 31, 1997, to $18.50 on August 31, 1998,
plus reinvestment of all dividends. The Trust had a tax-exempt distribution rate
of 5.45 percent(3), based on the closing price of its common shares. Because
income from the Trust is exempt from federal and state income taxes, this
distribution rate is equivalent to a yield of 9.16 percent(4) on a taxable
investment (for investors in the combined federal and state income tax bracket
of 40.5 percent). Please refer to the chart on page 7 for additional performance
numbers.
Continued on page 4
3
<PAGE> 5
Twelve-Month Distribution History
For the Period Ended August 31, 1998
<TABLE>
<CAPTION>
Distribution per Common Share
Capital Gains Dividends
Capital Gains Dividends
<S> <C> <C>
Sep 1997.......... $ $ .0840
Oct 1997.......... .0840
Nov 1997.......... .0840
Dec 1997.......... .0228 .0840
Jan 1998.......... .0840
Feb 1998.......... .0840
Mar 1998.......... .0840
Apr 1998.......... .0840
May 1998.......... .0840
Jun 1998.......... .0840
Jul 1998.......... .0840
Aug 1998.......... .0840
</TABLE>
The distribution history represents past performance of the Trust and does not
predict the Trust's future distributions.
ECONOMIC OUTLOOK
We believe the economy will rebound later this year, provided some stability
is restored in the stock market. Domestic economic activity remains strong
despite the market's decline and should overcome many of the negative effects of
the global economic crisis. In Asia, where the crisis began, there are signs of
potential rebounds. If the economic crisis in Asia, Russia, and other emerging
markets continues unabated, however, we believe the Fed will refrain from
raising rates and could even lower them. Fed Chairman Alan Greenspan
acknowledged as much in a recent speech, when he disclosed that Fed
policy-makers had abandoned their bias toward a rate hike in favor of a neutral
position. Due to events overseas, policy-makers are now more concerned about an
economic slowdown than about rising inflation, Greenspan indicated. The impact
of slower economic growth abroad should help to offset any acceleration in
domestic inflation.
We will closely monitor these global and domestic events and their effects
on the performance of the Trust, adjusting the portfolio when appropriate. We
remain committed to providing a high level of tax-exempt income while preserving
shareholders' capital. 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 7
4
<PAGE> 6
GLOSSARY OF TERMS
BASIS POINT: A measure used in quoting bond yields. One hundred basis points is
equal to 1 percent. For example, if a bond's yield changes from 7.00 to 6.65
percent, it is a 35 basis-point move.
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.
A callable bond is "priced to call" when it is selling at a premium, because
it is assumed that the issuer will redeem the bond at its call date, rather than
at maturity.
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 United States.
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.
5
<PAGE> 7
INFLATION: A persistent and measurable rise in the general level of 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.
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.
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.
6
<PAGE> 8
PERFORMANCE RESULTS FOR THE PERIOD ENDED AUGUST 31, 1998
VAN KAMPEN OHIO QUALITY MUNICIPAL TRUST
(NYSE TICKER SYMBOL - VOQ)
<TABLE>
<CAPTION>
<S> <C>
COMMON SHARE TOTAL RETURNS
One-year total return based on market price(1)............. 15.39%
One-year total return based on NAV(2)...................... 8.16%
DISTRIBUTION RATES
Distribution rate as a % of closing common stock
price(3)................................................... 5.45%
Taxable-equivalent distribution rate as a % of closing
common stock price(4)...................................... 9.16%
SHARE VALUATIONS
Net asset value............................................ $ 17.57
Closing common stock price................................. $18.500
One-year high common stock price (02/10/98)................ $19.375
One-year low common stock price (09/02/97)................. $17.125
Preferred share rate(5).................................... 3.500%
</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 40.5%
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.
On August 20, 1998, the Trust's Board of Trustees voted to change the
Trust's fiscal year end from August 31 to October 31, effective at the close of
the August 31, 1998 fiscal year. As a result, the next fiscal year will commence
on September 1, 1998 and end on October 31, 1998; however, you will not receive
an annual report for the two-month transition period from August 31, 1998 to
October 31, 1998. Instead, the financial information for those two months will
appear in a separate column in the April 30, 1999 semiannual report. If you
would like to receive the audited financial statements for this two-month
period, please contact our Investor Services Department at 1-800-341-2929.
7
<PAGE> 9
PORTFOLIO OF INVESTMENTS
August 31, 1998
------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- ------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS 98.7%
OHIO 84.1%
$2,750 Akron, OH Wtrwrks Mtg Rev (Prerefunded @
03/01/01) (AMBAC Insd)......................... 6.550% 03/01/12 $ 2,982,595
2,100 Alliance, OH Swr Sys Rev Rfdg (AMBAC Insd)..... 6.000 10/15/10 2,325,015
500 Athens Cnty, OH Cmnty Mental Hlth Rev West Cent
Proj Ser 1 (LOC - Bank One Columbus)........... 6.900 06/01/10 538,505
1,000 Batavia, OH Local Sch Dist Rfdg (MBIA Insd).... 5.625 12/01/22 1,102,890
2,500 Carroll Cnty, OH Hosp Impt Rev Timken Mercy Med
Cent (Prerefunded @ 12/01/01).................. 7.125 12/01/18 2,797,575
3,250 Cincinnati & Hamilton Cnty, OH Port Auth Indl
Dev Rev Convention Garage Rfdg (Prerefunded @
12/01/02)...................................... 7.450 06/01/10 3,759,242
4,000 Cincinnati & Hamilton Cnty, OH Port Auth Indl
Dev Rev Sixth Street Garage Rfdg (Prerefunded @
12/01/02)...................................... 7.450 06/01/10 4,626,760
2,500 Cleveland, OH Arpt Sys Rev Ser A (Prerefunded @
01/01/00) (MBIA Insd).......................... 7.375 01/01/10 2,668,275
500 Cleveland, OH Pub Pwr Sys Rev Impt First Mtg
Ser A (MBIA Insd).............................. 7.000 11/15/17 551,960
1,000 Cleveland, OH Pub Pwr Sys Rev Impt First Mtg
Ser B Rfdg (MBIA Insd)......................... 7.000 11/15/17 1,103,920
500 Cuyahoga Cnty, OH Hlthcare Fac Benjamin Rose
Institute Proj Rfdg............................ 5.500 12/01/28 494,500
1,000 Cuyahoga Cnty, OH Hlthcare Fac Rev Judson
Retirement Cmnty Ser A Rfdg.................... 7.250 11/15/18 1,100,820
500 Cuyahoga Cnty, OH Hosp Rev Hlth Cleveland
Fairview Genl Hosp & Lutheran Med Cent......... 6.300 08/15/15 543,840
1,000 Cuyahoga Cnty, OH Hosp Rev Meridia Hlth Sys
(Prerefunded @ 08/15/01)....................... 7.000 08/15/09 1,108,170
3,000 Cuyahoga Cnty, OH Hosp Rev Meridia Hlth Sys
(Prerefunded @ 08/15/01)....................... 7.000 08/15/23 3,324,510
3,000 Erie Cnty, OH Hosp Impt Rev Firelands Cmnty
Hosp Proj Rfdg................................. 6.750 01/01/08 3,280,290
4,000 Erie Cnty, OH Hosp Impt Rev Firelands Cmnty
Hosp Proj Rfdg................................. 6.750 01/01/15 4,364,560
500 Fairfield, OH City Sch Dist (FGIC Insd)........ 7.100 12/01/08 600,875
500 Finneytown, OH Local Sch Dist (FGIC Insd)...... 6.200 12/01/17 588,035
2,500 Franklin Cnty, OH Convention Fac Auth Tax &
Lease Rev Antic Bonds Rfdg (MBIA Insd)......... 5.800 12/01/13 2,706,625
7,500 Gateway Econ Dev Corp Gtr Cleveland, OH Excise
Tax Rev Sr Lien Ser A (FSA Insd)............... 6.875 09/01/05 8,193,525
1,000 Gateway Econ Dev Corp Gtr Cleveland, OH Stadium
Rev............................................ 6.500 09/15/14 1,056,190
</TABLE>
See Notes to Financial Statements
8
<PAGE> 10
PORTFOLIO OF INVESTMENTS (CONTINUED)
August 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- ------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
OHIO (CONTINUED)
$3,000 Hamilton Cnty, OH Hlth Sys Rev Providence Hosp
Franciscan Rfdg................................ 6.875% 07/01/15 $ 3,244,500
1,000 Lorain Cnty, OH Hosp Rev Mtg Elyria United
Methodist Rfdg................................. 6.875 06/01/22 1,108,220
2,000 Lorain, OH Hosp Impt Rev Lakeland Cmnty Hosp
Inc............................................ 6.500 11/15/12 2,291,040
1,500 Lucas Cnty, OH Hlth Fac Rev Ohio Presbyterian
Ser A Rfdg..................................... 6.750 07/01/20 1,668,345
1,400 Mahoning Cnty, OH Hosp Fac Rev YHA Inc Proj Ser
A Rfdg (Prerefunded @ 10/15/02) (MBIA Insd).... 7.000 10/15/08 1,565,690
1,000 Middleburg Heights, OH Southwest Genl Hlth Cent
(FSA Insd)..................................... 5.625 08/15/15 1,076,730
1,000 Montgomery Cnty, OH Hosp Rev Grandview Hosp &
Med Cent Rfdg.................................. 5.600 12/01/11 1,053,090
3,325 Ohio Hsg Fin Agy Mtg Rev Residential Ser A2
(GNMA Collateralized).......................... 6.625 03/01/26 3,587,143
5,550 Ohio Hsg Fin Agy Single Family Mtg Rev......... * 01/15/15 2,520,422
5,850 Ohio Hsg Fin Agy Single Family Mtg Rev
(Prerefunded @ 07/15/14)....................... * 01/15/15 2,608,924
1,215 Ohio Hsg Fin Agy Single Family Mtg Rev Ser A
(GNMA Collateralized).......................... 7.650 03/01/29 1,269,092
560 Ohio Hsg Fin Agy Single Family Mtg Rev Ser B
(GNMA Collateralized).......................... 8.100 12/15/08 581,689
2,350 Ohio St Air Quality Dev Auth Rev Ashland Oil
Inc Proj Rfdg.................................. 6.850 04/01/10 2,495,559
2,000 Ohio St Bldg Auth St Fac James Rhodes Ser A
Rfdg........................................... 6.250 06/01/11 2,132,600
1,230 Ohio St Dept of Tran Ctfs Partn Panhandle Rail
Line Proj (FSA Insd)........................... 6.500 04/15/12 1,341,106
645 Ohio St Econ Dev Rev OH Enterprise Brd Fd Ser
9.............................................. 7.625 12/01/11 711,964
2,000 Ohio St Univ Rev Genl Rcpts (Prerefunded @
12/01/98)...................................... 7.150 12/01/09 2,057,880
1,500 Ohio St Wtr Dev Auth Pollutn Ctl Fac Rev Wtr
Ctl Ln Fd St Match (MBIA Insd)................. 6.000 12/01/11 1,617,090
1,000 Pike Cnty, OH Hlthcare Fac Rev Rfdg............ 6.750 06/01/17 1,037,300
1,650 Toledo-Lucas Cnty, OH Port Auth Port Rev Fac
Cargill Inc Proj Rfdg.......................... 7.250 03/01/22 1,844,370
3,000 University of Cincinnati, OH Genl Rcpts Ser II
(Prerefunded @ 06/01/99)....................... 7.100 06/01/10 3,139,650
3,000 Westerville, OH Minerva Park & Blendon Jt Twp
Hosp Dist Rev Saint Anns Hosp Ser B Rfdg (AMBAC
Insd).......................................... 6.800 09/15/06 3,406,440
------------
92,177,521
------------
GUAM 1.0%
1,000 Guam Arpt Auth Rev Ser B....................... 6.700 10/01/23 1,099,280
------------
</TABLE>
See Notes to Financial Statements
9
<PAGE> 11
PORTFOLIO OF INVESTMENTS (CONTINUED)
August 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- ------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
PUERTO RICO 11.5%
$5,000 Puerto Rico Comwlth Pub Impt Rfdg.............. 3.000% 07/01/06 $ 4,520,100
1,815 Puerto Rico Elec Pwr Auth Pwr Rev Ser P
(Prerefunded @ 07/01/01)....................... 7.000 07/01/11 2,009,114
4,500 Puerto Rico Elec Pwr Auth Pwr Rev Ser P
(Prerefunded @ 07/01/01)....................... 7.000 07/01/21 4,981,275
1,000 Puerto Rico Elec Pwr Auth Pwr Rev Ser T
(Prerefunded @ 07/01/04)....................... 6.375 07/01/24 1,141,380
------------
12,651,869
------------
U. S. VIRGIN ISLANDS 2.1%
2,000 Virgin Islands Pub Fin Auth Rev Matching Fd Ln
Nts Ser A Rfdg (Prerefunded @ 10/01/02)........ 7.250 10/01/18 2,291,680
------------
TOTAL INVESTMENTS 98.7%
(Cost $97,114,330)....................................................... 108,220,350
OTHER ASSETS IN EXCESS OF LIABILITIES 1.3%................................ 1,406,031
------------
NET ASSETS 100.0%......................................................... $109,626,381
============
</TABLE>
* Zero coupon bond
See Notes to Financial Statements
10
<PAGE> 12
STATEMENT OF ASSETS AND LIABILITIES
August 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Total Investments (Cost $97,114,330)........................ $108,220,350
Receivables:
Interest.................................................. 1,819,466
Investments Sold.......................................... 10,203
Other....................................................... 2,868
------------
Total Assets.......................................... 110,052,887
------------
LIABILITIES:
Payables:
Custodian Bank............................................ 119,833
Investment Advisory Fee................................... 64,811
Administrative Fee........................................ 18,518
Income Distributions - Preferred Shares................... 13,425
Affiliates................................................ 12,245
Accrued Expenses............................................ 105,979
Trustees' Deferred Compensation and Retirement Plans........ 91,695
------------
Total Liabilities..................................... 426,506
------------
NET ASSETS.................................................. $109,626,381
============
NET ASSETS CONSIST OF:
Preferred Shares ($.01 par value, authorized 100,000,000
shares, 700 issued with liquidation preference of $50,000
per share)................................................ $ 35,000,000
------------
Common Shares ($.01 par value with an unlimited number of
shares authorized, 4,248,190 shares issued and
outstanding).............................................. 42,482
Paid in Surplus............................................. 62,791,507
Net Unrealized Appreciation................................. 11,106,020
Accumulated Undistributed Net Investment Income............. 604,049
Accumulated Net Realized Gain............................... 82,323
------------
Net Assets Applicable to Common Shares................ $ 74,626,381
------------
NET ASSETS.................................................. $109,626,381
============
NET ASSET VALUE PER COMMON SHARE ($74,626,381 divided by
4,248,190 shares outstanding)............................. $ 17.57
============
</TABLE>
See Notes to Financial Statements
11
<PAGE> 13
STATEMENT OF OPERATIONS
For the Year Ended August 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest.................................................... $ 6,638,195
-----------
EXPENSES:
Investment Advisory Fee..................................... 761,163
Administrative Fee.......................................... 217,475
Preferred Share Maintenance................................. 101,709
Trustees' Fees and Expenses................................. 20,774
Custody..................................................... 8,576
Legal....................................................... 8,518
Other....................................................... 170,063
-----------
Total Expenses.......................................... 1,288,278
-----------
NET INVESTMENT INCOME....................................... $ 5,349,917
===========
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Gain........................................... $ 82,320
-----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 9,478,128
End of the Period......................................... 11,106,020
-----------
Net Unrealized Appreciation During the Period............... 1,627,892
-----------
NET REALIZED AND UNREALIZED GAIN............................ $ 1,710,212
===========
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $ 7,060,129
===========
</TABLE>
See Notes to Financial Statements
12
<PAGE> 14
STATEMENT OF CHANGES IN NET ASSETS
For the Years Ended August 31, 1998 and 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended Year Ended
August 31, 1998 August 31, 1997
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income................................... $ 5,349,917 $ 5,385,208
Net Realized Gain....................................... 82,320 123,232
Net Unrealized Appreciation During the Period........... 1,627,892 2,970,759
------------ ------------
Change in Net Assets from Operations.................... 7,060,129 8,479,199
------------ ------------
Distributions from Net Investment Income:
Common Shares......................................... (4,266,805) (4,245,209)
Preferred Shares...................................... (1,244,255) (1,174,847)
------------ ------------
(5,511,060) (5,420,056)
------------ ------------
Distributions from Net Realized Gain:
Common Shares......................................... (96,478) (166,218)
Preferred Shares...................................... (26,754) (51,734)
------------ ------------
(123,232) (217,952)
------------ ------------
Total Distributions..................................... (5,634,292) (5,638,008)
------------ ------------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES..... 1,425,837 2,841,191
FROM CAPITAL TRANSACTIONS:
Value of Common Shares Issued Through Dividend
Reinvestment.......................................... 488,888 213,622
------------ ------------
TOTAL INCREASE IN NET ASSETS............................ 1,914,725 3,054,813
NET ASSETS:
Beginning of the Period................................. 107,711,656 104,656,843
------------ ------------
End of the Period (Including accumulated undistributed
net investment income of $604,049 and $763,488,
respectively)......................................... $109,626,381 $107,711,656
============ ============
</TABLE>
See Notes to Financial Statements
13
<PAGE> 15
FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for one common share
of the Trust outstanding throughout the periods indicated.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
September 27, 1991
(Commencement
Year Ended August 31, of Investment
--------------------------------------------------------- Operations) to
1998 1997 1996 1995 1994 1993 August 31, 1992
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
the Period (a)................. $17.229 $16.554 $16.598 $16.239 $17.445 $15.988 $14.748
------- ------- ------- ------- ------- ------- -------
Net Investment Income.......... 1.262 1.278 1.267 1.275 1.290 1.291 1.006
Net Realized and Unrealized
Gain/Loss.................... .406 .735 -0- .397 (1.195) 1.442 1.175
------- ------- ------- ------- ------- ------- -------
Total from Investment
Operations..................... 1.668 2.013 1.267 1.672 .095 2.733 2.181
------- ------- ------- ------- ------- ------- -------
Less:
Distributions from Net
Investment Income:
Paid to Common
Shareholders............... 1.008 1.008 1.008 .984 .984 .983 .731
Common Share Equivalent of
Distributions Paid to
Preferred Shareholders..... .293 .278 .303 .329 .208 .201 .210
Distributions from Net Realized
Gains:
Paid to Common
Shareholders............... .023 .040 -0- -0- .091 .072 -0-
Common Share Equivalent of
Distributions Paid to
Preferred Shareholders..... .006 .012 -0- -0- .018 .020 -0-
------- ------- ------- ------- ------- ------- -------
Total Distributions............. 1.330 1.338 1.311 1.313 1.301 1.276 .941
------- ------- ------- ------- ------- ------- -------
Net Asset Value, End of the
Period......................... $17.567 $17.229 $16.554 $16.598 $16.239 $17.445 $15.988
======= ======= ======= ======= ======= ======= =======
Market Price Per Share at End of
the Period..................... $18.500 $17.000 $16.500 $15.875 $15.750 $17.250 $16.250
Total Investment Return at
Market Price (b)............... 15.39% 9.55% 10.47% 7.34% (2.54%) 13.17% 13.59%*
Total Return at Net Asset Value
(c)............................ 8.16% 10.70% 5.85% 8.74% (0.79%) 16.26% 11.78%*
Net Assets at End of the Period
(In millions).................. $ 109.6 $ 107.7 $ 104.7 $ 104.6 $ 103.0 $ 108.1 $ 101.8
Ratio of Expenses to Average Net
Assets Applicable to Common
Shares**....................... 1.75% 1.78% 1.80% 1.81% 1.82% 1.72% 1.79%
Ratio of Net Investment Income
to Average Net Assets
Applicable to Common
Shares (d)..................... 5.57% 5.89% 5.75% 6.00% 6.39% 6.61% 5.83%
Portfolio Turnover.............. 5% 7% 6% 24% 0% 18% 43%*
*Non-Annualized
**Ratio of Expenses to Average
Net Assets
Including Preferred Shares..... 1.18% 1.19% 1.20% 1.19% 1.22% 1.14% 1.22%
</TABLE>
(a) Net Asset Value at September 27, 1991, is adjusted for common and preferred
share offering costs of $.252 per 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.
See Notes to Financial Statements
14
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS
August 31, 1998
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen Ohio Quality Municipal Trust (the "Trust") is registered as a
non-diversified closed-end management investment company under the Investment
Company Act of 1940, as amended. The Trust's investment objective is to provide
a high level of current income exempt from federal and Ohio income taxes,
consistent with preservation of capital. The Trust will invest in a portfolio
consisting substantially of Ohio 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. At August 31, 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.
15
<PAGE> 17
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
August 31, 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 August 31, 1998, for federal income tax purposes, cost of long-term
investments is $97,114,330; the aggregate gross unrealized appreciation is
$11,106,020 and the aggregate gross unrealized depreciation is $0, resulting in
net unrealized appreciation on investments of $11,106,020.
E. DISTRIBUTION OF INCOME AND GAINS--The Trust declares and pays monthly
dividends from net investment income to common shareholders. Net realized gains,
if any, are distributed annually on a pro rata basis to common and preferred
shareholders. Distributions from net realized gains for book purposes may
include short-term capital gains, which are included as ordinary income for tax
purposes.
Due to inherent differences in the recognition of income, expenses and
realized gains/losses under generally accepted accounting principles and federal
income tax purposes, permanent differences between financial and tax basis
reporting for the 1998 fiscal year have been identified and appropriately
reclassified. Permanent book and tax basis differences relating to the
recognition of certain expenses which are not deductible for tax purposes
totaling $1,704 have been reclassified from accumulated undistributed net
investment income to capital.
For the year ended August 31, 1998, 100% of the income distributions made by
the Trust were exempt from federal income taxes. Additionally, during the
period, the Trust designated and paid $118,857 as a 28% rate gain distribution.
These distributions, where applicable, were included on 1997's Form 1099-DIV
which was mailed to shareholders in January of 1998. In January, 1999 the Trust
will provide tax information to shareholders for the 1998 calendar year.
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 .70% of the average
net assets of the Trust. In addition, the Trust will pay a monthly
administrative fee to Van Kampen Funds Inc. or its affiliates (collectively "Van
Kampen"), 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.
16
<PAGE> 18
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
August 31, 1998
- --------------------------------------------------------------------------------
For the year ended August 31, 1998, the Trust recognized expenses of
approximately $1,500 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 August 31, 1998, the Trust recognized expenses of
approximately $60,600 representing Van Kampen's cost of providing accounting and
legal 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 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 under the plan is currently $2,500.
3. CAPITAL TRANSACTIONS
At August 31, 1998 and 1997, paid in surplus related to common shares aggregated
$62,791,507 and $62,304,602, respectively.
Transactions in common shares were as follows:
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
AUGUST 31, 1998 AUGUST 31, 1997
- -------------------------------------------------------------------------------
<S> <C> <C>
Beginning Shares......................... 4,220,349 4,207,788
Shares Issued Through Dividend
Reinvestment........................... 27,841 12,561
--------- ---------
Ending Shares............................ 4,248,190 4,220,349
--------- ---------
</TABLE>
4. INVESTMENT TRANSACTIONS
During the period, the cost of purchases and proceeds from sales of investments,
excluding short-term investments, were $5,802,076 and $5,928,554, respectively.
5. PREFERRED SHARES
The Trust has outstanding 700 Auction Preferred Shares ("APS"). Dividends are
cumulative and the dividend rate is currently reset every 28 days through an
auction process. The rate in effect on August 31, 1998 was 3.500%. During the
year ended August 31, 1998, the rates ranged from 3.420% to 4.066%.
17
<PAGE> 19
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
August 31, 1998
- --------------------------------------------------------------------------------
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.
6. YEAR 2000 COMPLIANCE (UNAUDITED)
Van Kampen utilizes a number of computer programs across its entire operation
relying on both internal software systems as well as external software systems
provided by third parties. In 1996 Van Kampen initiated a CountDown 2000 Project
to review both the internal systems and external vendor connections. The goal of
this project is to position its business to continue unaffected as a result of
the century change. At this time, there can be no assurance that the steps taken
will be sufficient to avoid any adverse impact to the Trust, but Van Kampen does
not anticipate that the move to Year 2000 will have a material impact on its
ability to continue to provide the Trust with service at current levels. In
addition, it is possible that the securities markets in which the Trust invests
may be detrimentally affected by computer failures throughout the financial
services industry beginning January 1, 2000. Improperly functioning trading
systems may result in settlement problems and liquidity issues.
18
<PAGE> 20
REPORT OF INDEPENDENT ACCOUNTANTS
The Board of Trustees and Shareholders of
Van Kampen Ohio Quality Municipal Trust:
We have audited the accompanying statement of assets and liabilities of Van
Kampen Ohio Quality Municipal Trust (the "Trust"), including the portfolio of
investments, as of August 31, 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 Trust's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with 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
August 31, 1998, by correspondence with the custodian. 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 Ohio Quality Municipal Trust as of August 31, 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
October 6, 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
changes 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 Investments 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
European Equity
Global Equity
Global Equity Allocation
Global Franchise
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
Reserve
Tax Free Money
Senior Loan
Prime Rate Income Trust
Senior Floating Rate
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.VANKAMPEN.COM -- to view a prospectus, select Download 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.VANKAMPEN.COM and selecting Contact Us
21
<PAGE> 23
VAN KAMPEN OHIO QUALITY MUNICIPAL TRUST
BOARD OF TRUSTEES
DAVID C. ARCH
ROD DAMMEYER
HOWARD J KERR
DENNIS J. MCDONNELL*--Chairman
STEVEN MULLER
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.
1 Parkview Plaza
P.O. Box 5555
Oakbrook Terrace, IL 60181-5555
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 Annual Meeting of Shareholders of the Trust was held on July 28, 1998, where
shareholders voted on the election of trustees and independent public
accountants.
1) With regard to the election of the following trustee by preferred
shareholders:
<TABLE>
<CAPTION>
# OF SHARES
---------------------
IN FAVOR WITHHELD
- --------------------------------------------------------------------------
<S> <C> <C>
Theodore A. Meyers............................... 478 0
</TABLE>
2) With regard to the election of the following trustees by common
shareholders:
<TABLE>
<CAPTION>
# OF SHARES
---------------------
IN FAVOR WITHHELD
- --------------------------------------------------------------------------
<S> <C> <C>
Don G. Powell.................................... 3,502,853 49,571
Hugo Sonnenschein................................ 3,504,352 48,072
</TABLE>
3) With regard to the ratification of KPMG Peat Marwick LLP as independent
public accountants for the trust, 3,496,597 shares voted in favor of the
proposal, 20,175 shares voted against, and 36,130 shares abstained.
23
<PAGE> 25
VAN KAMPEN OHIO QUALITY MUNICIPAL TRUST
THIS PAGE INTENTIONALLY LEFT BLANK
24
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 11
<NAME> OH QUALITY
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> AUG-31-1998
<PERIOD-START> SEP-01-1997
<PERIOD-END> AUG-31-1998
<INVESTMENTS-AT-COST> 97,114,330
<INVESTMENTS-AT-VALUE> 108,220,350
<RECEIVABLES> 1,829,669
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 2,868
<TOTAL-ASSETS> 110,052,887
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 426,506
<TOTAL-LIABILITIES> 426,506
<SENIOR-EQUITY> 35,000,000
<PAID-IN-CAPITAL-COMMON> 62,833,989
<SHARES-COMMON-STOCK> 4,248,190
<SHARES-COMMON-PRIOR> 4,220,349
<ACCUMULATED-NII-CURRENT> 604,049
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 82,323
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 11,106,020
<NET-ASSETS> 109,626,381
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 6,638,195
<OTHER-INCOME> 0
<EXPENSES-NET> (1,288,278)
<NET-INVESTMENT-INCOME> 5,349,917
<REALIZED-GAINS-CURRENT> 82,320
<APPREC-INCREASE-CURRENT> 1,627,892
<NET-CHANGE-FROM-OPS> 7,060,129
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (5,511,060)
<DISTRIBUTIONS-OF-GAINS> (123,232)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 27,841
<NET-CHANGE-IN-ASSETS> 1,914,725
<ACCUMULATED-NII-PRIOR> 763,488
<ACCUMULATED-GAINS-PRIOR> 123,235
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 761,163
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,288,278
<AVERAGE-NET-ASSETS> 108,757,600
<PER-SHARE-NAV-BEGIN> 17.229
<PER-SHARE-NII> 1.262
<PER-SHARE-GAIN-APPREC> 0.406
<PER-SHARE-DIVIDEND> (1.301)
<PER-SHARE-DISTRIBUTIONS> (0.029)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 17.567
<EXPENSE-RATIO> 1.75
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
