<TABLE>
Table of Contents
<CAPTION>
<S> <C>
Letter to Shareholders ................ 1
Performance Results ................... 3
Portfolio of Investments ............. 4
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
</TABLE>
Page: 1
Letter to Shareholders
June 16, 1995
Dear Shareholder:
During the six-month period covered by this report, November 1, 1994 through
April 30, 1995, we saw the close of a challenging and difficult year in the
financial markets -- and the beginning of a new year, with renewed optimism and
strength on many fronts.
Market Overview
Most of 1994 was a difficult period for fixed-income investors as the Federal
Reserve Board's crusade against inflation drove interest rates markedly higher.
The yield on 30-year Treasury securities, for example, climbed from 6.35
percent as the year began to a high of 8.16 percent by early November. As
interest rates rose, fixed-income investments declined in value.
The fixed-income markets have rebounded considerably since late 1994, however,
with growing confidence that the Fed's inflation fighting initiatives have taken
hold. The yield on 30-year Treasury securities fell to 7.34 percent by the end
of April 1995 and to approximately 6.50 percent at the time of this writing.
This rate reversal has pushed bond prices back to February 1994 levels.
Closed-end municipal bond funds, in particular, have been among the greatest
beneficiaries in this rally, earning back virtually all of last year's losses
and posting attractive returns.
Performance Summary
The Trust achieved a six-month total return of 14.05 percent <F1>, based on
market price, for the period ended April 30, 1995. This robust performance can
be partially attributed to the Trust's leveraged capital structure, which has
helped it to more fully benefit from a fall in long-term interest rates over
the last six months. While leveraging adds certain financing risks and
volatility, it is designed, over time, to provide shareholders with enhanced
returns by taking advantage of the yield differential between long-term and
short-term interest rates.
Clearly, the Trust recovered from the difficult previous six-month period and
made significant price gains. The Trust's closing stock price, for example,
gained more than 9.5 percent from its $14.000 level on October 31, 1994, to
$15.375 on April 30, 1995. As the graph on the following page shows, we've also
seen the Trust's net asset value rebound during the last six months.
Although intermediate- and long-term interest rates eased during this
reporting period, short-term interest rates have remained persistently high,
placing continued pressure on the Trust's preferred rates and common dividend.
The Trust was able, however, to sustain its annualized dividend level in this
environment at $1.14 per common share, which represents a tax-exempt
distribution rate of 7.41 percent <F3>, based on the closing stock price of
$15.375 per share on April 30, 1995. For shareholders in the 36 percent
federal income tax bracket, this distribution rate represents a yield
equivalent to a taxable investment earning 11.58 percent <F4>.
[PHOTO]
Dennis J. McDonnell and Don G. Powell
(Continued on page two)
Page: 2
Outlook
The outlook for fixed-income securities appears favorable. To date, inflation
remains under control, and recent economic data continues to suggest a slowdown
in the economy. First-quarter gross domestic product, for example, grew at an
annual rate of 2.8 percent, substantially lower than its fourth-quarter rate of
5.1 percent last year. Many analysts now expect GDP to grow at an annual rate
between 1 and 2 percent in the second half of this year. Should this scenario
play out, we suspect that the Fed is more likely to lower than raise short-term
rates, which would be a positive development for all fixed-income investors.
Regarding the municipal market, we remain optimistic about the current supply-
and-demand dynamics. With much of the refinancing by municipal issuers behind
us, we expect new-issue supply to remain low in 1995 and demand for municipals
to be steady, if not strong. A decline in supply combined with steady demand
should lend price stability and price support to this market. We believe the
Trust will continue to provide shareholders with long-term value as we seek to
maintain a high level of current income over time.
[GRAPH]
Trust Rebounds in 1995
<TABLE>
COMPARISON OF NAV AND MARKET PRICE OF THE TRUST
<CAPTION>
Measurement Market
Period NAV Price
<S> <C> <C>
30-Apr-94 $16.01 15.500
31-May-94 $16.07 15.625
30-Jun-94 $15.84 15.625
31-Jul-94 $16.09 15.500
31-Aug-94 $16.06 15.125
30-Sep-94 $15.57 14.250
31-Oct-94 $15.03 14.000
30-Nov-94 $14.33 13.750
31-Dec-94 $14.85 13.750
31-Jan-95 $15.35 15.000
28-Feb-95 $15.99 15.625
31-Mar-95 $16.08 15.375
30-Apr-95 $15.96 15.375
</TABLE>
Corporate News
As you may have already noticed, we have adopted a new design for our
shareholder reports that reflects our new identity as Van Kampen American
Capital. Going forward, we will continue to look for new ways to improve upon
the presentation of information in your Trust's report. In addition, we have
developed a new corporate advertising campaign introducing Van Kampen American
Capital. Full page ads appeared in The Wall Street Journal in the first quarter
of 1995 -- watch for more advertising throughout the year.
We look forward to communicating with you on a regular basis, providing
information about your Trust's performance, new investment opportunities, and
our newly created company. We appreciate your continued confidence in your
investment with Van Kampen American Capital.
Sincerely,
Don G. Powell
Chief Executive Officer
Van Kampen American Capital
Investment Advisory Corp.
Dennis J. McDonnell
President
Van Kampen American Capital
Investment Advisory Corp.
Page: 3
<TABLE>
<CAPTION>
Performance Results for the Period Ended April 30, 1995
Van Kampen Merritt Trust For Investment Grade Municipals
(NYSE Ticker Symbol-VGM)
<S> <C>
Total Returns
Six-month total return based on market price<F1> .................................. 14.05%
Six-month total return based on NAV<F2> ........................................... 10.18%
Distribution Rates
Distribution rate as a % of initial offer stock price<F3> ......................... 7.60%
Taxable-equivalent distribution rate as a % of initial offer stock price<F4> ...... 11.88%
Distribution rate as a % of 04/30/95 closing stock price<F3> ...................... 7.41%
Taxable-equivalent distribution rate as a % of 04/30/95 closing stock price<F4> ... 11.58%
Share Valuations
Net asset value as of 04/30/95 .................................................... $ 15.96
Preferred share (Series A) rate as of 04/30/95<F5> ................................ 4.090%
Preferred share (Series B) rate as of 04/30/95<F5> ................................ 4.090%
Preferred share (Series C) rate as of 04/30/95<F5> ................................ 4.299%
Preferred share (Series D) rate as of 04/30/95<F5> ................................ 4.300%
Closing common stock price as of 04/30/95 ........................................ $ 15.375
Six-month high common stock price (03/29/95) ..................................... $ 15.750
Six-month low common stock price (11/08/94) ...................................... $ 13.000
<FN>
<F1> 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.
<F2> 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 net asset value.
<F3> Distribution rate represents the monthly annualized distributions of the
Trust at the end of April 1995, and not the earnings of the Trust.
<F4> The taxable-equivalent distribution rate is calculated assuming a 36%
federal tax bracket.
<F5> 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.
</TABLE>
Page: 4
<TABLE>
Portfolio of Investments
<CAPTION>
April 30, 1995 (Unaudited)
- ----------------------------------------------------------------------------------------------
Par
Amount
(000) Description Coupon Maturity Market Value
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Municipal Bonds
Alabama 3.1%
$ 8,000 Birmingham, AL North Med Clinic Brd Rev
Ser A Carraway Methodist Hosp .................. 7.500% 07/01/15 $ 8,392,720
8,600 Birmingham, AL North Med Clinic Brd Rev
Ser B Carraway Methodist Hosp .................. 8.000 07/01/15 9,250,332
4,000 Courtland, AL Indl Dev Brd Solid Waste
Disp Rev Champion Intl Corp Proj ................ 7.750 01/01/20 4,218,120
------------
21,861,172
------------
Arkansas 2.1%
14,500 Blytheville, AR Solid Waste Recycling & Swr
Treatment Rev Nucor Corp Proj ................... 6.900 12/01/21 14,936,160
------------
California 4.2%
2,000 California Pollutn Ctl Fin Auth Pollutn Ctl Rev
Southern CA Edison Co (Embedded Cap)
(AMBAC Insd) ................................... 6.000 07/01/27 1,952,520
2,175 Los Angeles Cnty, CA Pub Wks Fin Auth Lease
Rev Multi Cap Fac Proj IV (MBIA Insd) .......... 5.250 12/01/16 1,930,769
4,000 Los Angeles, CA Convention & Exhibition Cent Auth
Lease Rev Ser A Rfdg (MBIA Insd) ................ 5.150 08/15/08 3,739,840
5,000 Los Angeles, CA Dept Wtr & Pwr Elec Plant Rev
Crossover Rfdg (MBIA Insd) ..................... 5.375 09/01/23 4,458,200
15,000 San Diego, CA Indl Dev Rev San Diego Gas & Elec
Ser A (Embedded Cap) (AMBAC Insd) ............... 6.100 09/01/19 15,039,150
2,000 Southern CA Pub Pwr Auth (FSA Insd) ............ 6.000 07/01/12 1,989,220
------------
29,109,699
------------
Colorado 3.8%
7,000 Denver, CO City & Cnty Arpt Rev Ser A .......... 8.500 11/15/23 7,567,700
5,000 Denver, CO City & Cnty Arpt Rev Ser A .......... 8.750 11/15/23 5,544,550
7,915 Denver, CO City & Cnty Arpt Rev Ser A .......... 8.000 11/15/25 8,362,989
1,685 Meridian Metro Dist CO Peninsular & Oriental
Steam Navig Co Rfdg ............................ 7.000 12/01/00 1,771,238
3,250 Meridian Metro Dist CO Peninsular & Oriental
Steam Navig Co Rfdg ............................ 7.500 12/01/11 3,432,325
------------
26,678,802
------------
District of Columbia 0.6%
1,600 District of Columbia Ser E (FSA Insd) .......... 6.000 06/01/13 1,545,152
3,000 Metropolitan WA, DC Arpts Auth Genl
Arpt Rev Ser A (MBIA Insd) ...................... 5.750 10/01/20 2,788,440
------------
4,333,592
------------
</TABLE>
See Notes to Financial Statements
Page: 5
<TABLE>
Portfolio of Investments (Continued)
<CAPTION>
April 30,1995 (Unaudited)
- -------------------------------------------------------------------------------------------------
Par
Amount
(000) Description Coupon Maturity Market Value
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Florida 0.7%
$ 1,400 Florida St Dept Corrections Ctfs Partn
Okeechobee Correctional (AMBAC Insd) .............. 6.250% 03/01/15 $ 1,426,838
1,000 Hillsborough Cnty, FL Indl Dev Auth Pollutn Ctl
Rev Tampa Elec Co Proj Ser 92 Rfdg ................. 8.000 05/01/22 1,167,470
2,000 Martin Cnty, FL Indl Dev Auth Indl Dev Rev
Indiantown Cogeneration Proj A Rfdg ............... 7.875 12/15/25 2,124,320
------------
4,718,628
------------
Georgia 1.4%
3,150 Burke Cnty, GA Dev Auth Pollutn Ctl Rev GA
Pwr Co Plant Vogtle Proj (MBIA Insd) ............... 6.350 05/01/19 3,157,592
5,900 Municipal Elec Auth, GA Spl Oblig Fifth
Crossover Ser Proj One (MBIA Insd) ................. 6.500 01/01/17 6,284,208
------------
9,441,800
------------
Hawaii 2.8%
12,770 Hawaii St Arpt Sys Rev Ser 2 ....................... 7.000 07/01/18 13,192,815
6,000 Hawaii St Arpt Sys Rev Ser 2 (MBIA Insd) .......... 6.750 07/01/21 6,212,280
------------
19,405,095
------------
Illinois 12.2%
4,865 Chicago, IL Cap Appreciation (AMBAC Insd) .......... * 07/01/16 1,135,637
1,600 Chicago, IL Cent Pub Lib Ser A (AMBAC Insd) ....... 6.650 01/01/05 1,718,576
1,800 Chicago, IL Cent Pub Lib Ser A (AMBAC Insd) ....... 6.700 01/01/06 1,940,814
1,600 Chicago, IL Cent Pub Lib Ser B (AMBAC Insd) ....... 6.650 01/01/05 1,718,576
10,000 Chicago, IL Cent Pub Lib Ser B (Prerefunded
@ 04/01/02) (AMBAC Insd) .......................... 6.850 01/01/17 11,128,100
1,400 Chicago, IL Cent Pub Lib Ser C (AMBAC Insd) ....... 6.650 01/01/05 1,503,754
1,500 Chicago, IL Cent Pub Lib Ser C (AMBAC Insd) ....... 6.700 01/01/06 1,617,345
7,000 Chicago, IL O'Hare Intl Arpt Rev Genl Arpt
Second Lien Ser A (MBIA Insd) ...................... 6.375 01/01/12 7,152,460
3,000 Chicago, IL O'Hare Intl Arpt Spl Fac Rev
Intl Terminal (MBIA Insd) ......................... 6.750 01/01/18 3,100,950
13,645 Chicago, IL O'Hare Intl Arpt Spl Fac Rev
United Airls Inc ................................... 8.500 05/01/18 14,624,711
3,735 Chicago, IL O'Hare Intl Arpt Spl Fac Rev
United Airls Inc Proj Ser 84A ...................... 8.850 05/01/18 4,125,457
4,505 East Peoria, IL Ser C Rfdg ......................... 7.000 05/01/17 4,774,174
10,010 Hoffman Estates, IL Tax Increment Rev
Jr Lien Sears Roebuck & Co ........................ * 05/15/05 5,446,541
10,000 Hoffman Estates, IL Tax Increment Rev
Jr Lien Sears Roebuck & Co ........................ * 05/15/06 5,066,700
2,000 Illinois Hlth Fac Auth Rev Edward Hosp Assn Proj ... 7.000 02/15/12 2,053,800
1,900 Illinois Hlth Fac Auth Rev Evangelical
Hosps Ser C (FSA Insd) ............................ 6.750 04/15/17 1,968,324
</TABLE>
See Notes to Financial Statements
Page: 6
<TABLE>
Portfolio of Investments (Continued)
<CAPTION>
April 30,1995 (Unaudited)
- -------------------------------------------------------------------------------------------------
Par
Amount
(000) Description Coupon Maturity Market Value
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Illinois (Continued)
$ 2,400 Illinois Hlth Fac Auth Rev Sarah Bush
Lincoln Hlth Cent .................................. 7.250% 05/15/22 $ 2,407,728
3,750 Illinois Hlth Fac Auth Rev South Subn Hosp Rfdg .... 7.000 02/15/22 3,810,900
3,185 Illinois Hsg Dev Auth Multi-Family Hsg Ser C ....... 7.400 07/01/23 3,360,016
8,845 Metropolitan Pier & Expo Auth IL Dedicated St
Tax Rev McCormick Pl Expansion Ser A
(FGIC Insd) ......................................... * 06/15/16 2,308,014
13,500 Metropolitan Pier & Expo Auth IL Dedicated St
Tax Rev McCormick Pl Expansion Ser A (FGIC Insd) ... * 06/15/20 2,692,035
1,400 Southern IL Univ Rev Hsg & Aux Fac Ser A Rfdg ...... 6.750 04/01/12 1,461,824
------------
85,116,436
------------
Indiana 0.7%
4,500 Indianapolis, IN Arpt Auth Rev Spl Fac
Federal Express Corp Proj ........................... 7.100 01/15/17 4,607,595
------------
Iowa 0.3%
2,375 Iowa Student Ln Liquidity Corp Rev Ser C ........... 6.950 03/01/06 2,476,531
------------
Kentucky 3.0%
10,000 Kenton Cnty, KY Arpt Brd Arpt Rev Spl Fac
Delta Airls Proj Ser A ............................. 7.500 02/01/20 10,236,300
11,000 Kenton Cnty, KY Arpt Brd Arpt Rev Spl
Fac Delta Airls Proj Ser A ......................... 7.125 02/01/21 10,953,250
------------
21,189,550
------------
Maine 2.1%
2,650 Maine Muni Bd Bank Ser A Rfdg (MBIA Insd) .......... 5.800 11/01/20 2,511,776
5,250 Maine St Hsg Auth Mtg Pur Ser D6 .................... 7.250 11/15/19 5,452,598
6,755 Maine St Hsg Auth Mtg Pur Ser D6 .................... 7.250 11/15/22 6,997,842
------------
14,962,216
------------
Maryland 0.8%
5,000 Maryland St Cmnty Dev Admin Dept Hsg & Cmnty
Dev Rev Single Family Pgm 7th Ser .................. 7.300 04/01/25 5,273,000
------------
Massachusetts 2.7%
12,685 Massachusetts St Cons Ln Ser D
(Prerefunded @ 07/01/01) ........................... 6.875 07/01/10 14,106,735
4,500 Massachusetts St Hsg Fin Agy Residential
Dev Ser C (FNMA Collateralized) ..................... 6.875 11/15/11 4,701,375
------------
18,808,110
------------
Michigan 3.8%
8,015 Detroit, MI Econ Dev Corp Res Recovery
Rev Ser A (FSA Insd) ............................... 6.875 05/01/09 8,518,502
3,500 Grand Rapids, MI Downtown Dev Cap
Appreciation (MBIA Insd) ........................... * 06/01/15 1,006,530
2,765 Grand Rapids, MI Downtown Dev Cap
Appreciation (MBIA Insd) ........................... * 06/01/16 745,803
</TABLE>
See Notes to Financial Statements
Page: 7
<TABLE>
Portfolio of Investments (Continued)
<CAPTION>
April 30,1995 (Unaudited)
- -------------------------------------------------------------------------------------------------
Par
Amount
(000) Description Coupon Maturity Market Value
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Michigan (Continued)
$ 12,995 Michigan St Hosp Fin Auth Rev Sisters of Mercy
Hlth Corp Ser J (Prerefunded @ 02/15/01) ......... 7.000% 02/15/21 $ 14,441,214
1,400 Portage Lake, MI Wtr & Swr Auth Ser 3 ............. 7.750 10/01/20 1,489,250
-------------
26,201,299
-------------
Mississippi 0.4%
3,000 Medical Cent Edl Bldg Corp MS Rev Univ MS
Med Cent Proj (MBIA Insd) ......................... 5.900 12/01/23 2,849,220
-------------
Nevada 0.5%
3,000 Clark Cnty, NV Indl Dev Rev NV Pwr Co
Proj C Rfdg (AMBAC Insd) ......................... 7.200 10/01/22 3,266,730
-------------
New Hampshire 3.1%
16,500 New Hampshire St Indl Dev Auth Rev Pollutn
Ctl Pub Svcs Co NH Proj A ......................... 7.650 05/01/21 17,244,975
4,000 New Hampshire St Indl Dev Auth Rev Pollutn
Ctl Pub Svcs Co NH Proj C ......................... 7.650 05/01/21 4,129,640
-------------
21,374,615
-------------
New Jersey 7.3%
2,650 Camden Cnty, NJ Pollutn Ctl Fin Auth Solid
Waste Res Recovery Rev Ser B ..................... 7.500 12/01/09 2,576,674
11,000 Mercer Cnty, NJ Impt Auth Rev Solid Waste
Ser A Rfdg (FGIC Insd) ........................... 6.700 04/01/13 11,326,370
25,000 New Jersey Econ Dev Auth St Contract
Econ Recovery (Embedded Cap) ..................... 5.900 09/15/21 24,737,250
2,000 New Jersey Hlthcare Fac Fin Auth Rev
Genl Hosp Cent at Passaic (FSA Insd) .............. 6.000 07/01/00 2,082,460
10,000 New Jersey St Hsg & Mtg Fin Agy Rev .............. 6.950 05/01/15 10,365,100
-------------
51,087,854
-------------
New York 18.5%
12,155 Metropolitan Tran Auth NY Svcs Contract
Commuter Fac Ser 5 Rfdg ........................... 6.500 07/01/16 12,249,201
5,000 New York City Ser A .............................. 6.500 08/01/14 4,892,000
1,740 New York City Ser A (Prerefunded @ 08/15/01) ...... 8.000 08/15/20 2,040,011
2,900 New York City Ser C Rfdg ......................... 6.500 08/01/04 2,946,632
8,500 New York City Ser C ............................... 7.500 08/01/19 9,054,370
5,250 New York City Tran Auth Tran Fac Livingston
Plaza Proj Rfdg (FSA Insd) ....................... 5.400 01/01/18 4,795,245
13,500 New York St Dorm Auth Rev City Univ Sys Ser C ..... 7.500 07/01/10 15,122,835
2,000 New York St Dorm Auth Rev Court Fac Lease Ser A ... 5.375 05/15/16 1,745,900
5,725 New York St Environmental Fac Corp Spl
Oblig Riverbank State Park ....................... 7.375 04/01/22 6,024,188
5,000 New York St Hsg Fin Agy Svcs Contract Oblig
Rev Ser A (Prerefunded @ 03/15/01) ................ 7.375 09/15/21 5,729,700
</TABLE>
See Notes to Financial Statements
Page: 8
<TABLE>
Portfolio of Investments (Continued)
<CAPTION>
April 30,1995 (Unaudited)
- -------------------------------------------------------------------------------------------------
Par
Amount
(000) Description Coupon Maturity Market Value
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New York (Continued)
$ 27,700 New York St Loc Govt Assistance Corp
Ser D (Prerefunded @ 04/01/02) .................... 7.000% 04/01/18 $ 31,179,397
2,840 New York St Loc Govt Assistance Corp Ser E Rfdg ... 6.000 04/01/14 2,852,610
6,450 New York St Med Care Fac Fin Agy Rev Mental
Hlth Svcs Fac Ser A (AMBAC Insd) ................. 5.700 08/15/14 6,201,417
3,000 New York St Med Care Fac Fin Agy Rev NY
Hosp Mtg Ser A (AMBAC Insd) ....................... 6.750 08/15/14 3,198,390
5,875 New York St Med Care Fac Fin Agy Rev
Saint Peter's Hosp Proj Ser A (AMBAC Insd) ....... 5.375 11/01/20 5,271,696
3,000 New York St Ser B Rfdg ............................ 6.375 08/15/00 3,191,040
11,500 New York St Urban Dev Corp Rev St Fac ............ 7.500 04/01/11 12,361,580
-------------
128,856,212
-------------
North Carolina 4.6%
2,500 North Carolina Eastn Muni Pwr Agy Pwr Sys
Rev Ser B Rfdg (FGIC Insd) <F2> .................. 6.250 01/01/23 2,480,200
10,000 North Carolina Eastn Muni Pwr Agy Pwr Sys
Rev Ser B Rfdg (Embedded Cap) ..................... 6.000 01/01/14 9,489,900
15,000 North Carolina Muni Pwr Agy No 1
Catawba Elec Rev (Embedded Cap) .................. 6.000 01/01/12 14,613,600
5,150 North Carolina Muni Pwr Agy No 1
Catawba Elec Rev Rfdg (FSA Insd) .................. 6.200 01/01/18 5,156,849
-------------
31,740,549
-------------
Ohio 1.1%
4,000 Cleveland, OH Arpt Sys Rev Ser A (FGIC Insd) ...... 6.000 01/01/24 3,861,800
1,000 Ohio St Air Quality Dev Auth Rev JMG Funding
Ltd Partnership Proj Rfdg (AMBAC Insd) ............ 6.375 04/01/29 1,017,390
3,000 Ohio St Wtr Dev Auth Pollutn Ctl Fac Rev
PA Pwr Co Proj Rfdg (AMBAC Insd) ................. 6.150 08/01/23 3,004,470
-------------
7,883,660
-------------
Oklahoma 3.7%
17,475 Tulsa, OK Muni Arpt Tran Rev American Airls Inc ... 7.375 12/01/20 17,772,075
7,500 Tulsa, OK Muni Arpt Tran Rev American Airls Inc ... 7.600 12/01/30 7,727,025
-------------
25,499,100
-------------
Oregon 1.1%
7,670 Oregon St Hsg & Cmnty Svcs Dept Mtg
Rev Single Family Mtg Proj Ser B .................. 6.875 07/01/28 7,881,462
-------------
Pennsylvania 3.3%
2,500 Allegheny Cnty, PA Arpt Rev Gtr Pittsburgh
Intl Arpt Ser B (FSA Insd) ....................... 6.625 01/01/22 2,561,750
4,000 Falls Twp, PA Hosp Auth Hosp Rev
DE Vly Med Rfdg (FHA Insd) ........................ 7.000 08/01/22 4,148,200
7,000 Montgomery Cnty, PA Indl Dev Auth
Rev Pollutn Ctl Ser E Rfdg (MBIA Insd) ........... 6.700 12/01/21 7,329,490
</TABLE>
See Notes to Financial Statements
Page: 9
<TABLE>
Portfolio of Investments (Continued)
<CAPTION>
April 30,1995 (Unaudited)
- -------------------------------------------------------------------------------------------------
Par
Amount
(000) Description Coupon Maturity Market Value
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Pennsylvania (Continued)
$ 1,500 Pennsylvania Hsg Fin Agy Single Family
Mtg Ser 34B ......................................... 7.000% 04/01/24 $ 1,548,030
6,000 Philadelphia, PA Gas Wks Rev 14th Ser (FSA Insd) ... 6.250 07/01/08 6,181,440
1,000 Philadelphia, PA Hosp & Higher Edl Fac
Auth Hosp Rev Temple Univ Hosp Ser A ............... 6.500 11/15/08 1,015,260
------------
22,784,170
------------
Rhode Island 0.2%
1,500 Rhode Island Depositors Econ Protn Corp
Spl Oblig Ser A (Prerefunded @ 08/01/02) ........... 6.950 08/01/22 1,690,170
------------
South Carolina 0.4%
2,700 Charleston Cnty, SC Solid Waste (MBIA Insd) ......... 6.000 01/01/14 2,684,718
------------
South Dakota 0.4%
2,500 South Dakota Hsg Dev Auth Homeownership
Mtg Ser C ........................................... 7.300 05/01/24 2,601,175
------------
Tennessee 1.2%
1,250 Maury Cnty, TN Indl Dev Brd Pollutn Ctl Rev
Multi Modal Saturn Corp Proj Rfdg ................... 6.500 09/01/24 1,221,063
6,845 Memphis, TN Hlth Edl & Hsg Fac Brd Mtg
Rev Edgewater Terr Rfdg (FHA Insd) ................. 7.375 01/20/27 7,250,566
------------
8,471,629
------------
Texas 1.5%
5,250 Alliance Arpt Auth Inc TX Spl Fac Rev
American Airls Inc Proj ............................. 7.500 12/01/29 5,363,348
2,000 Coastal Bend Hlth Fac Dev Corp TX Incarnate
Word Hlth Svcs Ser A (FSA Insd) .................... 6.000 11/15/22 1,919,400
12,500 Texas Muni Pwr Agy Rev Rfdg (MBIA Insd) ............ * 09/01/15 3,539,375
------------
10,822,123
------------
Utah 1.3%
2,500 Salt Lake City, UT Hosp Rev IHC Hosp Inc
Rfdg (Embedded Cap) ................................. 5.500 02/15/17 2,230,600
5,190 Utah St Hsg Fin Agy Single Family Mtg Ser A2 ....... 7.150 07/01/25 5,338,745
1,235 Utah St Hsg Fin Agy Single Family
Mtg Sr Ser A1 (FHA Insd) ............................ 7.100 07/01/14 1,274,397
------------
8,843,742
------------
Virginia 0.4%
1,000 Henrico Cnty, VA Indl Dev Auth Pub Fac Lease Rev
Henrico Cnty Regl Jail Proj ......................... 7.125 08/01/21 1,074,020
1,500 Virginia St Hsg Dev Auth Multi-Family Ser E Rfdg ... 5.900 11/01/17 1,414,575
------------
2,488,595
------------
Washington 0.7%
5,000 Washington St Pub Pwr Supply Sys Nuclear Proj
No 1 Rev Ser A Rfdg ................................. 6.875 07/01/17 5,171,200
------------
</TABLE>
See Notes to Financial Statements
Page: 10
<TABLE>
Portfolio of Investments (Continued)
<CAPTION>
April 30,1995 (Unaudited)
- -------------------------------------------------------------------------------------------------
Par
Amount
(000) Description Coupon Maturity Market Value
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
West Virginia 2.7%
$ 3,000 Marshall Cnty, WV Pollutn Ctl Rev OH Pwr Co
Proj Ser C Rfdg (MBIA Insd) .................. 6.850% 06/01/22 $ 3,172,170
15,000 West Virginia St Hsg Dev Fd Hsg Fin Ser B ... 7.200 11/01/20 15,552,150
--------------
18,724,320
--------------
Wisconsin 1.5%
9,855 Wisconsin Hsg & Econ Dev Auth
Homeownership Rev Ser A ..................... 7.100 03/01/23 10,219,931
--------------
Puerto Rico 0.2%
1,110 Puerto Rico Comwlth Ser A Rfdg ............... 6.000 07/01/14 1,086,390
--------------
Total Long-Term Investments 98.4%
(Cost $655,694,585) <F1> ................................................... 685,147,250
Other Assets in Excess of Liabilities 1.6% ................................ 11,086,137
--------------
Net Assets 100% ........................................................... $ 696,233,387
--------------
*Zero coupon bond
<FN>
<F1> At April 30, 1995, cost for federal income tax purposes is $655,694,585;
the aggregate gross unrealized appreciation is $31,870,541 and the aggregate
gross unrealized depreciation is $4,100,843, resulting in net unrealized
appreciation including futures transactions of $27,769,698.
<F2> Assets segregated as collateral for open futures transactions.
</TABLE>
The following table summarizes the portfolio composition at April 30, 1995,
based upon quality ratings issued by Standard & Poor's. For securities not rated
by Standard & Poor's, the Moody's rating is used.
<TABLE>
Portfolio Composition by Credit Quality
<CAPTION>
<S> <C>
AAA ... 34.9%
AA .... 11.2
A ..... 23.5
BBB ... 16.6
BB .... 13.8
-------
100.0%
-------
</TABLE>
See Notes to Financial Statements
Page: 11
<TABLE>
Statement of Assets and Liabilities
<CAPTION>
April 30,1995 (Unaudited)
- ---------------------------------------------------------------------------------------------
<S> <C>
Assets:
Investments, at Market Value (Cost $655,694,585) (Note 1) ................... $ 685,147,250
Receivables:
Interest .................................................................... 14,065,957
Investments Sold ............................................................ 60,000
Unamortized Organizational Expenses (Note 1) ............................... 13,849
---------------
Total Assets ................................................................ 699,287,056
---------------
Liabilities:
Payables:
Custodian Bank .............................................................. 1,446,378
Income Distributions - Common and Preferred Shares ......................... 797,574
Investment Advisory Fee (Note 2) ............................................ 374,821
Administrative Fee (Note 2) ................................................ 115,329
Accrued Expenses ............................................................ 319,567
---------------
Total Liabilities ........................................................... 3,053,669
---------------
Net Assets .................................................................. $ 696,233,387
---------------
Net Assets Consist of:
Preferred Shares ($.01 par value, authorized 100,000,000 shares, 5,300 issued
with liquidation preference of $50,000 per share) (Note 5) .................. $ 265,000,000
---------------
Common Shares ($.01 par value with an unlimited number of shares authorized,
27,013,149 shares issued and outstanding) .................................. 270,131
Paid in Surplus ............................................................ 399,318,038
Net Unrealized Appreciation on Investments ................................. 27,769,698
Accumulated Undistributed Net Investment Income ............................ 6,500,963
Accumulated Net Realized Loss on Investments ................................ (2,625,443)
---------------
Net Assets Applicable to Common Shares ...................................... 431,233,387
---------------
Net Assets .................................................................. $ 696,233,387
---------------
Net Asset Value Per Common Share ($431,233,387 divided
by 27,013,149 shares outstanding) ........................................... $ 15.96
---------------
</TABLE>
See Notes to Financial Statements
Page: 12
<TABLE>
Statement of Operations
<CAPTION>
For the Six Months Ended April 30,1995 (Unaudited)
- -------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment Income:
Interest ......................................................................................... $ 22,781,197
---------------
Expenses:
Investment Advisory Fee (Note 2) ................................................................ 2,184,774
Administrative Fee (Note 2) ...................................................................... 672,238
Preferred Share Maintenance (Note 5) ............................................................. 357,655
Legal (Note 2) .................................................................................. 19,910
Trustees Fees and Expenses (Note 2) .............................................................. 13,575
Amortization of Organizational Expenses (Note 1) ................................................ 3,968
Other ............................................................................................ 237,159
---------------
Total Expenses ................................................................................... 3,489,279
---------------
Net Investment Income ............................................................................ $ 19,291,918
---------------
Realized and Unrealized Gain/Loss on Investments:
Realized Gain/Loss on Investments:
Proceeds from Sales .............................................................................. $ 73,232,014
Cost of Securities Sold .......................................................................... (75,453,016)
---------------
Net Realized Loss on Investments (Including realized loss on futures transactions of $711,574) ... (2,221,002)
---------------
Unrealized Appreciation/Depreciation on Investments:
Beginning of the Period ......................................................................... (789,237)
End of the Period (Including unrealized depreciation on futures transactions of $1,682,967) ...... 27,769,698
---------------
Net Unrealized Appreciation on Investments During the Period ..................................... 28,558,935
---------------
Net Realized and Unrealized Gain on Investments .................................................. $ 26,337,933
---------------
Net Increase in Net Assets from Operations ....................................................... $ 45,629,851
---------------
</TABLE>
See Notes to Financial Statements
Page: 13
Statement of Changes in Net Assets
<TABLE>
For the Six Months Ended April 30,1995 and the Year Ended October 31,1994
(Unaudited)
- ------------------------------------------------------------------------------------------------------
<CAPTION>
Six Months Ended Year Ended
April 30,1995 October 31,1994
---------------- ---------------
<S> <C> <C>
From Investment Activities:
Operations:
Net Investment Income ............................................. $ 19,291,918 $ 38,676,264
Net Realized Loss on Investments .................................. (2,221,002) (404,501)
Net Unrealized Appreciation/Depreciation on
Investments During the Period ..................................... 28,558,935 (76,344,833)
---------------- ---------------
Change in Net Assets from Operations ............................. 45,629,851 (38,073,070)
---------------- ---------------
Distributions from Net Investment Income:
Common Shares ..................................................... (15,397,264) (30,794,679)
Preferred Shares ................................................. (5,053,068) (8,243,153)
---------------- ---------------
(20,450,332) (39,037,832)
---------------- ---------------
Distributions from Net Realized Gain on Investments:
Common Shares ..................................................... -0- (1,523,542)
Preferred Shares ................................................. -0- (309,705)
---------------- ---------------
-0- (1,833,247)
---------------- ---------------
Total Distributions .............................................. (20,450,332) (40,871,079)
---------------- ---------------
Net Change in Net Assets from Investment Activities ............... 25,179,519 (78,944,149)
Net Assets:
Beginning of the Period .......................................... 671,053,868 749,998,017
---------------- ---------------
End of the Period (Including undistributed net investment income of
$6,500,963 and $7,659,377, respectively) ......................... $ 696,233,387 $ 671,053,868
---------------- ---------------
</TABLE>
See Notes to Financial Statements
Page: 14
<TABLE>
Financial Highlights
The following schedule presents financial highlights for one common share of the
Trust outstanding throughout the periods indicated. (Unaudited)
- ---------------------------------------------------------------------------------------------
<CAPTION>
January 24,1992
Six Months Year Year (Commencement
Ended Ended Ended of Investment
April 30, October 31, October 31, Operations) to
1995 1994 199 October 31,1992
---------- ------------ ----------- ---------------
<S> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period <F1> ............ $ 15.032 $ 17.954 $ 15.557 $ 14.792
---------- ------------ ----------- ---------------
Net Investment Income ............... .714 1.432 1.454 1.010
Net Realized and Unrealized
Gain/Loss on Investments ........... .975 (2.842) 2.424 .550
---------- ------------ ----------- ---------------
Total from Investment Operations ... 1.689 (1.410) 3.878 1.560
---------- ------------ ----------- ---------------
Less:
Distributions from Net
Investment Income:
Paid to Common Shareholders ......... .570 1.140 1.085 .595
Common Share Equivalent of
Distributions Paid to
Preferred Shareholders .............. .187 .305 .287 .200
Distributions from Net Realized
Gain on Investments:
Paid to Common Shareholders ......... .000 .056 .083 .000
Common Share Equivalent of
Distributions Paid to
Preferred Shareholders .............. .000 .011 .026 .000
---------- ------------ ----------- ---------------
Total Distributions ................. .757 1.512 1.481 .795
---------- ------------ ----------- ---------------
Net Asset Value, End of Period ..... $ 15.964 $ 15.032 $ 17.954 $ 15.557
---------- ------------ ----------- ---------------
Market Price Per Share
at End of Period .................... $ 15.375 $ 14.000 $ 17.375 $ 14.875
Total Investment Return at Market
Price (Non-Annualized) <F2> ......... 14.05% (13.12%) 25.40% 3.08%
Total Return at Net Asset
Value (Non-Annualized) <F3> ......... 10.18% (9.99%) 23.53% 7.68%
Net Assets at End of Period
(In millions) ....................... $ 696.2 $ 671.1 $ 750.0 $ 685.2
Ratio of Expenses to Average
Net Assets Applicable to
Common Shares (Annualized) .......... 1.68% 1.63% 1.59% 1.54%
Ratio of Expenses to Average
Net Assets (Annualized) ............ 1.03% 1.03% 1.01% 1.01%
Ratio of Net Investment Income to
Average Net Assets Applicable to
Common Shares (Annualized) <F4> ..... 6.86% 6.79% 6.87% 6.71%
Portfolio Turnover .................. 10.00% 20.20% 19.77% 37.07%
<FN>
<F1> Net asset value at January 24, 1992 is adjusted for common and preferred
share offering costs of $.208 per common share.
<F2> 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.
<F3> Total return at net asset value (NAV) reflects the change in value of the
Trust's assets with reinvestment of dividends based upon NAV.
<F4> Net investment income is adjusted for the common share equivalent of
distributions paid to preferred shareholders.
</TABLE>
See Notes to Financial Statements
Page: 15
Notes to Financial Statements
April 30,1995 (Unaudited)
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Van Kampen Merritt Trust for Investment Grade Municipals (the "Trust") is
registered as a diversified closed-end management investment company under the
Investment Company Act of 1940, as amended. The Trust commenced investment
operations on January 24, 1992.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements.
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 less than 60 days 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 April 30, 1995, 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.
D. Organizational Expenses -- The Trust has reimbursed Van Kampen American
Capital Distributors, Inc. or its affiliates ("VKAC") for costs incurred in
connection with the Trust's organization and initial registration in the amount
of $40,000. These costs are being amortized on a straight line basis over the 60
month period ending January 23, 1997. Van Kampen American Capital Investment
Advisory Corp. (the "Adviser") has agreed that in the event any
of the initial shares of the Trust originally purchased by VKAC are redeemed
during the amortization period, the Trust will be reimbursed for any unamortized
organizational expenses in the same proportion as the number of shares redeemed
bears to the number of initial shares held at the time of redemption.
Page: 16
Notes to Financial Statements (Continued)
April 30,1995 (Unaudited)
- --------------------------------------------------------------------------------
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 October 31, 1994, the Trust had an accumulated capital loss
carryforward for tax purposes of $404,441, which will expire on October 31,
2002.
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, the Adviser will
provide investment advice and facilities to the Trust for an annual fee payable
monthly of .65% 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 & Flom,
counsel to the Trust, of which a trustee of the Trust is an affiliated person.
For the six months ended April 30, 1995, the Trust recognized expenses of
approximately $16,500 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. The Trust's liability under the
deferred compensation and retirement plans at April 30, 1995 was $13,500.
Page: 17
Notes to Financial Statements (Continued)
April 30,1995 (Unaudited)
- --------------------------------------------------------------------------------
At April 30, 1995, VKAC owned 6,700 common shares of the Trust.
3. Investment Transactions
Aggregate purchases and cost of sales of investment securities, excluding
short-term notes, for the six months ended April 30, 1995, were $66,850,251 and
$75,453,016, 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 investments. 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. 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.
The fluctuation in market value of the contracts is settled daily through a
cash margin account. Realized gains and losses are recognized when the contracts
are closed or expire.
Transactions in futures contracts for the six months ended April 30, 1995,
were as follows:
<TABLE>
<CAPTION>
Contracts
- ----------------------------------------------
<S> <C>
Outstanding at October 31, 1994 ... 600
Futures Opened .................... 1,200
Futures Closed .................... (1,200)
--------
Outstanding at April 30, 1995 ..... 600
--------
</TABLE>
Page: 18
Notes to Financial Statements (Continued)
April 30,1995 (Unaudited)
- --------------------------------------------------------------------------------
The futures contracts outstanding at April 30, 1995, and the description and
unrealized depreciation are as follows:
<TABLE>
<CAPTION>
Unrealized
Contracts Depreciation
- -----------------------------------------------------
<S> <C> <C>
U.S. Treasury Bond Futures
June 1995-Sells to Open ... 600 $ 1,682,967
--------- ------------
</TABLE>
B. 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 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.
5. Preferred Shares
The Trust has outstanding 5,300 Auction Preferred Shares ("APS") in four series.
Series A, B, and C contain 1,500 shares each while Series D contains 800 shares.
Dividends are cumulative and the dividend rate is currently reset through an
auction process. The dividend period is 28 days for Series A, B, C and D. The
average rate in effect on April 30, 1995, was 4.18%. During the six months ended
April 30, 1995, the rates ranged from 2.875% to 4.75%.
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.
Page: 19
Funds Distributed by Van Kampen American Capital
GLOBAL AND
INTERNATIONAL
Govett Emerging Markets Fund
AC Global Equity Fund
Govett Global Government Income Fund
AC Global Government Securities
AC Global Managed Assets Fund
Govett International Equity Fund
Govett Latin America Fund
Govett Pacific Strategy Fund
VKM Short-Term Global Income Fund
VKM Strategic Income Fund
EQUITY
Growth
AC Emerging Growth Fund
AC Enterprise Fund
AC Pace Fund
Govett Smaller Companies Fund
Growth & Income
VKM Balanced Fund
AC Comstock Fund
AC Equity Income Fund
AC Growth and Income Fund
VKM Growth and Income Fund
AC Harbor Fund
AC Real Estate Securities Fund
VKM Utility Fund
AC Utilities Income Fund
FIXED INCOME
VKM Adjustable Rate U.S. Government Fund
AC Corporate Bond Fund
AC Federal Mortgage Trust
AC Government Securities
VKM High Yield Fund
AC High Yield Investments
VKM Money Market Fund
VKM Prime Rate Income Trust
AC Reserve Fund
VKM U.S. Government Fund
AC U.S. Government Trust for Income
TAX-FREE
VKM California Insured Tax Free Fund
VKM Florida Insured Tax Free Income Fund
VKM Insured Tax Free Income Fund
VKM Limited Term Municipal Income Fund
AC Municipal Bond Fund
VKM Municipal Income Fund
VKM New Jersey Tax Free Income Fund
VKM New York Tax Free Income Fund
VKM Pennsylvania Tax Free Income Fund
AC Tax-Exempt Trust
-- High Yield Municipal Portfolio
-- Insured Municipal Portfolio
VKM Tax Free High Income Fund
VKM Tax Free Money Fund
AC Texas Municipal Securities
Ask your investment representative for a prospectus containing more complete
information, including sales charges and expenses. Please read it carefully
before you invest or send money. Or call us direct at 1-800-421-5666 weekdays
from 7:00 a.m. to 7:00 p.m. Central time.
Page: 20
Van Kampen Merritt Trust For Investment Grade Municipals
Officers and Trustees
Don G. Powell*
Chairman and Trustee
Dennis J. McDonnell*
President and Trustee
David C. Arch
Trustee
Rod Dammeyer
Trustee
Howard J Kerr
Trustee
Theodore A. Myers
Trustee
Hugo F. Sonnenschein
Trustee
Wayne W. Whalen*
Trustee
Peter W. Hegel*
Vice President
Ronald A. Nyberg*
Vice President and Secretary
Edward C. Wood, III*
Vice President and Treasurer
Scott E. Martin*
Assistant Secretary
Weston B. Wetherell*
Assistant Secretary
Nicholas Dalmaso*
Assistant Secretary
John L. Sullivan*
Controller
Steven M. Hill*
Assistant Treasurer
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
333 West Wacker Drive
Chicago, Illinois 60606
Independent Auditors
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 American Capital Distributors, Inc., 1995
All rights reserved.
SM denotes a service mark of
Van Kampen American Capital Distributors, Inc.
