<PAGE> 1
<TABLE>
<S> <C>
Table of Contents
OVERVIEW
LETTER TO SHAREHOLDERS 1
ECONOMIC SNAPSHOT 2
PERFORMANCE SUMMARY
RETURN HIGHLIGHTS 3
PORTFOLIO AT A GLANCE
CREDIT QUALITY 4
SIX-MONTH DIVIDEND HISTORY 4
TOP FIVE INDUSTRIES 5
NET ASSET VALUE AND MARKET PRICE 5
Q&A WITH YOUR PORTFOLIO MANAGERS 6
GLOSSARY OF TERMS 10
BY THE NUMBERS
YOUR TRUST'S INVESTMENTS 11
FINANCIAL STATEMENTS 21
NOTES TO FINANCIAL STATEMENTS 26
DIVIDEND REINVESTMENT PLAN 30
VAN KAMPEN FUNDS
THE VAN KAMPEN FAMILY OF FUNDS 32
TRUST OFFICERS AND IMPORTANT ADDRESSES 33
</TABLE>
It is times like these when money- management experience may make a difference.
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
<PAGE> 2
OVERVIEW
LETTER TO SHAREHOLDERS
May 19, 2000
Dear Shareholder,
Whether you have held your Trust for years or just joined the Van Kampen family
of shareholders in the last few months, you are likely to have questions and
even some concerns about how recent market volatility has affected your
investment. I encourage you to review the following Q&A in which your portfolio
manager provides an update on how your Trust is being managed in this
environment.
It is times like these when money-management experience may make a difference.
Toward that end, you should know that Van Kampen is one of the nation's oldest
investment-management firms, with a history of money management dating back to
1926. Our portfolio managers have invested in all types of market
conditions--during bull and bear markets, periods of inflation and rising
interest rates, and now a technology revolution. We have managed money long
enough to understand short-term market volatility and the value of investing for
the long term.
As we head into the second half of 2000, count on us to
continue to draw on the wisdom of our 76 years of experience.
Along those lines, Van Kampen's "Generations of Experience" is
the theme of a national advertising campaign that kicked off
this spring. The message emphasizes our depth of
investment-management history, as well as our firm belief that with the right
investments, anyone can realize life's true wealth.
Sincerely,
[SIG]
Richard F. Powers, III
President and CEO
Van Kampen Investments
1
<PAGE> 3
ECONOMIC SNAPSHOT
ECONOMIC GROWTH
ECONOMIC GROWTH REMAINED STRONG, PRIMARILY DUE TO ACTIVE CONSUMER AND BUSINESS
SPENDING. GROSS DOMESTIC PRODUCT, THE PRIMARY MEASURE OF ECONOMIC GROWTH,
INCREASED AT AN ANNUALIZED RATE OF 5.4 PERCENT IN THE FIRST QUARTER OF 2000.
WHILE THIS FIGURE INDICATES A MODEST SLOWDOWN FROM THE PREVIOUS TWO QUARTERS, IT
NEVERTHELESS REPRESENTS A HIGH RATE OF ECONOMIC GROWTH.
CONSUMER SPENDING AND EMPLOYMENT
INFLATION FEARS CONTINUED TO MOUNT BECAUSE OF STRONG CONSUMER SPENDING AND THE
TIGHT LABOR MARKET. FOR MOST OF THE REPORTING PERIOD, RISING INTEREST RATES DID
LITTLE TO REIN IN ROBUST CONSUMER SPENDING. ALTHOUGH RETAIL SALES GROWTH
MODERATED IN APRIL, THE FACTORS UNDERPINNING CONSUMER ACTIVITY REMAINED LARGELY
UNCHANGED--RISING WAGES, LOW UNEMPLOYMENT, AND A GENERALLY FAVORABLE (THOUGH
VOLATILE) STOCK MARKET.
IN ADDITION, THE JOBLESS RATE HOVERED NEAR ITS LOWEST LEVEL IN THREE DECADES.
THE EMPLOYMENT COST INDEX ACCELERATED SHARPLY IN THE FIRST QUARTER OF 2000,
REFLECTING RISING WAGES AS EMPLOYERS VIE TO ATTRACT AND RETAIN SKILLED WORKERS.
THESE WAGE PRESSURES, IN TURN, BEGAN TO AFFECT PRICES, AS COMPANIES STARTED TO
RAISE THE COST OF GOODS AND SERVICES TO COMPENSATE FOR HIGHER LABOR COSTS.
INTEREST RATES AND INFLATION
STRONG GDP DATA, CONSUMER SPENDING, AND EMPLOYMENT PROMPTED THE FEDERAL RESERVE
BOARD TO SEEK TO SLOW THE PACE OF ECONOMIC GROWTH AND WARD OFF INFLATION. THE
FED INCREASED THE FEDERAL FUNDS RATE BY 0.25 PERCENT FIVE TIMES BETWEEN JUNE
1999 AND APRIL 2000. [EDITOR'S NOTE: THE FED RAISED RATES BY 0.50 PERCENT ON MAY
16.] DESPITE THE FED'S CONCERNS, THE CONSUMER PRICE INDEX, A MEASURE OF
INFLATION, ROSE A MODERATE 3.0 PERCENT DURING THE 12 MONTHS ENDED APRIL 30,
2000.
INTEREST RATES AND INFLATION
(April 30, 1998 - April 30, 2000)
[LINE GRAPH]
<TABLE>
<CAPTION>
INTEREST RATES INFLATION
-------------- ---------
<S> <C> <C>
Apr 98 5.50 1.40
5.50 1.70
5.50 1.70
Jul 98 5.50 1.70
5.50 1.60
5.25 1.50
Oct 98 5.00 1.50
4.75 1.50
4.75 1.60
Jan 99 4.75 1.70
4.75 1.60
4.75 1.70
Apr 99 4.75 2.30
4.75 2.10
5.00 2.00
Jul 99 5.00 2.10
5.25 2.30
5.25 2.60
Oct 99 5.25 2.60
5.50 2.60
5.50 2.70
Jan 00 5.50 2.70
5.75 3.20
6.00 3.70
Apr 00 6.00 3.00
</TABLE>
Interest rates are represented by the closing midline federal funds target rate
on the last
day of each month. Inflation is indicated by the annual percent change of the
Consumer Price Index for all urban consumers at the end of each month.
2
<PAGE> 4
PERFORMANCE SUMMARY
RETURN HIGHLIGHTS
(as of April 30, 2000)
<TABLE>
<S> <C> <C>
-----------------------------------------------------------------------
NYSE Ticker Symbol VMO
-----------------------------------------------------------------------
Six-month total return based on market price(1) 1.96%
-----------------------------------------------------------------------
Six-month total return based on NAV(2) 2.66%
-----------------------------------------------------------------------
Distribution rate as a % of closing common stock price(3) 6.76%
-----------------------------------------------------------------------
Taxable-equivalent distribution rate as a % of closing
common stock price(4) 10.56%
-----------------------------------------------------------------------
Net asset value $15.63
-----------------------------------------------------------------------
Closing common stock price $13.3125
-----------------------------------------------------------------------
Six-month high common stock price (11/08/99) $14.0625
-----------------------------------------------------------------------
Six-month low common stock price (12/13/99) $12.7500
-----------------------------------------------------------------------
Preferred share (Series A) rate(5) 3.900%
-----------------------------------------------------------------------
Preferred share (Series B) rate(5) 3.900%
-----------------------------------------------------------------------
</TABLE>
(1) Total return based on market price assumes an investment at the market price
at the beginning of the period indicated, reinvestment of all distributions for
the period in accordance with the Trust's dividend reinvestment plan, and sale
of all shares at the closing common stock price at the end of the period
indicated.
(2) Total return based on net asset value (NAV) assumes an investment at the
beginning of the period indicated, reinvestment of all distributions for the
period, and sale of all shares at the end of the period, all at NAV.
(3) Distribution rate represents the monthly annualized distributions of the
Trust at the end of the period and not the earnings of the Trust.
(4) The taxable-equivalent distribution rate is calculated assuming a 36%
federal income tax bracket.
(5) See "Notes to Financial Statements" footnote #5, for more information
concerning Preferred Share reset periods.
A portion of the interest income may be taxable for those investors subject to
the federal alternative minimum tax (AMT).
Past performance is no guarantee of 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.
3
<PAGE> 5
PORTFOLIO AT A GLANCE
CREDIT QUALITY
(as a percentage of long-term investments)
<TABLE>
<CAPTION>
As of April 30, 2000
<S> <C> <C>
- AAA/Aaa............ 65.3%
- AA/Aa.............. 6.7%
- A/A................ 19.0%
- BBB/Baa............ 7.8%
- Non-Rated.......... 1.2%
[PIE CHART]
<CAPTION>
As of October 31, 1999
<S> <C> <C>
- AAA/Aaa............ 64.4%
- AA/Aa.............. 9.3%
- A/A................ 11.2%
- BBB/Baa............ 14.7%
- Non-Rated.......... 0.4%
[PIE CHART]
</TABLE>
Based upon the highest credit quality ratings as issued by Standard & Poor's or
Moody's, respectively.
SIX-MONTH DIVIDEND HISTORY
(for the six months ending April 30, 2000, for common shares)
[BAR GRAPH]
<TABLE>
<CAPTION>
DIVIDENDS
---------
<S> <C>
11/99 0.075
12/99 0.075
1/00 0.075
2/00 0.075
3/00 0.075
4/00 0.075
</TABLE>
The dividend history represents past performance of the Trust and is no
guarantee of the Trust's future dividends.
4
<PAGE> 6
TOP FIVE INDUSTRIES
(as a percentage of long-term investments)
[INVESTMENT PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
APRIL 30, 2000 OCTOBER 31, 1999
-------------- ----------------
<S> <C> <C>
General Purpose 17.10 18.10
Wholesale Electric 12.20 12.30
Health Care 10.30 10.10
Transportation 8.30 9.50
Single-Family Housing 8.20 8.60
</TABLE>
NET ASSET VALUE AND MARKET PRICE
(based upon quarter-end values--April 1992 through April 2000)
[INVESTMENT PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
NET ASSET VALUE MARKET PRICE
--------------- ------------
<S> <C> <C>
4/92 14.95 14.95
15.59 14.88
15.75 15.13
12/92 15.65 15.00
16.47 15.88
16.95 15.88
17.44 16.25
12/93 17.44 16.00
15.41 14.13
15.25 14.63
14.99 13.38
12/94 14.30 12.75
15.61 14.00
15.23 13.88
15.48 13.50
12/95 16.62 13.50
15.82 13.75
15.62 13.50
15.98 13.63
12/96 16.24 13.50
15.94 13.75
16.46 14.56
16.94 15.13
12/97 17.33 15.50
17.30 15.63
17.26 15.63
17.81 16.69
12/98 17.54 16.69
17.38 16.56
16.54 15.13
16.05 13.88
12/99 15.50 13.13
15.90 13.25
4/00 15.63 13.31
</TABLE>
The solid line above represents the Trust's net asset value (NAV), which
indicates overall changes in value among the Trust's underlying securities. The
Trust's market price is represented by the dashed line, which indicates the
price the market is willing to pay for shares of the Trust at a given time.
Market price is influenced by a range of factors, including supply and demand
and market conditions.
5
<PAGE> 7
Q&A WITH YOUR PORTFOLIO MANAGERS
WE RECENTLY SPOKE WITH REPRESENTATIVES OF THE ADVISER OF THE VAN KAMPEN
MUNICIPAL OPPORTUNITY TRUST ABOUT THE KEY EVENTS AND ECONOMIC FORCES THAT SHAPED
THE MARKETS DURING THE PAST SIX MONTHS. THE REPRESENTATIVES INCLUDE DENNIS S.
PIETRZAK, PORTFOLIO MANAGER, WHO HAS MANAGED THE TRUST SINCE 1995 AND WORKED IN
THE INVESTMENT INDUSTRY SINCE 1968. THE FOLLOWING COMMENTS REFLECT THE
REPRESENTATIVES' VIEWS ON THE TRUST'S PERFORMANCE DURING THE SIX MONTHS ENDED
APRIL 30, 2000.
Q WHAT WERE THE MOST IMPORTANT
DEVELOPMENTS IN THE FIXED-INCOME MARKETS DURING THE REPORTING PERIOD?
A Generally higher interest rates,
sparked by inflation worries, set the tone for the fixed-income markets during
the past six months. As the economy continued its strong advance, the markets
reacted warily to signs of potential inflationary pressures--such as rising
employment costs, healthy job growth, strong consumer spending, and spikes in
commodities prices, especially oil. These concerns fueled a steady sell-off
through the fourth quarter of 1999 and into January 2000.
To slow the economy and keep prices from rising, the Federal Reserve Board
gradually pushed short-term interest rates higher, raising the fed funds rate (a
key short-term lending rate) three times between November 1999 and April 2000.
(Editor's note: On May 16, 2000, after the reporting period ended, the Fed
raised rates a fourth time.)
In times of rising interest rates, bond prices trend downward. Add to that
the lingering effects of the Year 2000 (Y2K) computer scare early in the first
quarter of 2000, and you can see why this was a challenging period for many
fixed-income investors.
Q HOW DID THE MUNICIPAL
BOND MARKET REACT TO THESE CONDITIONS?
A Not surprisingly, higher interest
rates hurt municipal bond prices, but we believe there's always opportunity in
the market. In the past few months, we've actually seen some fairly significant
price swings--both up and down--as investors tried to anticipate the Fed's next
move and the direction of interest rates. The market was weak in late 1999 and
early 2000, but we had a nice rally in February and March, which tapered off in
April.
The strong economy has bolstered the financial condition of many
municipalities across the country, so the pace of new municipal bond issuance
dropped sharply (about 40 percent) from a year ago. With their coffers full,
municipalities haven't needed to turn to the bond market for financing. Also,
6
<PAGE> 8
higher interest rates made it more difficult for issuers to refund outstanding
bond issues, which has been a source of new investment opportunities in the
past.
Q WHAT STRATEGIES DID YOU FOLLOW
IN MANAGING THE TRUST?
A Strategically, we've been moving in
a new direction since early this year. We made the decision to manage the Trust
relative to a new benchmark, rather than the Lipper peer group, which meant that
we needed to make some adjustments to the Trust's structure. The Trust's
benchmark is now the Lehman Brothers Municipal Bond Index with maturities
greater than five years. Specifically, we increased the duration of the
portfolio (a measure of its sensitivity to changes in interest rates) to more
closely track the performance of the new benchmark index. The benchmark provides
the shareholder with general municipal market returns, and the leveraged
structure provides the opportunity for enhanced dividends.
Fortunately, the municipal bond market played into our hands and gave us
some excellent opportunities to implement this new strategy. Beginning in late
January, we began purchasing deeply discounted bonds. These were securities that
had been issued a year or so ago with coupons of 4.75, 5.00, or 5.25 percent. As
interest rates went up over time, these bonds began selling at a deep discount,
with some as low as 85 cents on the dollar.
At the same time, the Trust held a number of older, prerefunded issues with
higher coupons in the 6.50 to 7.50 percent range. Such prerefunded issues tend
to decrease the duration of a portfolio because they have shorter lives than
their stated maturities. But because of their attractive coupons, these bonds
were trading at a premium to par, presenting us with an opportunity to capture
some solid capital gains. Because these bonds were scheduled to be called or
refunded within the next year or two, we chose to sell them while the demand for
them--and therefore their market price--was high.
This combination of buying deep-discount bonds and selling prerefunded
issues enabled us to lengthen the duration of the portfolio without drastically
altering the income stream that the Trust will be earning over time. While we
may see a slight decline in portfolio income in the months ahead, buying the
deeply discounted bonds enabled us to purchase more par value per dollar
invested. In some cases, for example, we were able to pick up $1 million worth
of bond par value for just $850,000.
Q WHAT AREAS OF THE MUNICIPAL
MARKET WERE MOST ATTRACTIVE TO YOU?
A Our philosophy is to seek out
bonds that we feel represent the best values compared with similar offerings in
the marketplace. During the past six months, we did not specifically target one
area of the market over another. We did, however, maintain significant
concentrations in certain sectors, including general purpose, wholesale
electric, and health-care bonds, each of which represented more than
7
<PAGE> 9
10 percent of the portfolio's long-term investments.
Many of our portfolio management decisions were based on pricing issues,
such as the availability of deep discounts, or structural issues, such as
extending duration or maintaining adequate call protection and diversification
for the portfolio. For additional portfolio highlights, please refer to page 4.
Q HOW DID THE TRUST PERFORM
DURING THE PERIOD?
A For the six-month period ended
April 30, 2000, the Trust returned 1.96 percent based on market price. At the
same time, the Trust's market price decreased from $13.5000 per share on October
31, 1999, to $13.3125 per share on April 30, 2000. By comparison, the total
return of the Trust's peer group (as represented by the Lehman Brothers
Municipal Bond Index) was 2.63 percent for the same period.
The Trust's dividend remained unchanged during the past six months. The
monthly tax-exempt dividend of $0.075 per share translates to a distribution
rate of 6.76 percent based on the Trust's closing common stock price on April
30, 2000.
Because the Trust is exempt from federal income taxes, this distribution
rate is equivalent to a yield of 10.56 percent for an investor in the 36 percent
federal income-tax bracket. Please refer to the chart and footnotes on page 3
for additional performance results. Past performance is no guarantee of future
results.
Q WHAT DO YOU SEE AHEAD
FOR THE ECONOMY AND THE MUNICIPAL MARKET?
A All eyes will be on the key
economic statistics, such as GDP growth, employment costs, and the unemployment
rate. These figures measure the economy's strength and rate of growth and may
influence whether the Fed will continue to raise short-term interest rates. We
expect that the inflation rate may increase, but it's likely to remain in a
moderate range for the near term. It's anticipated that the Fed will continue to
increase short-term rates by the end of the summer, perhaps by more than 0.50
percent. Higher interest rates will, in turn, put pressure on the municipal
market in the short run.
Increased stock-price volatility in April has increased investor skepticism,
but investors continue to see price pullbacks as opportunities to buy
aggressive-growth stocks. It may take a much deeper, more sustained decline in
these stocks to convince investors to rethink their asset allocation decisions.
If the stock market does fall sharply, we could see a flight to quality, as
investors pursue investments that typically carry less risk. Such conditions
might benefit investment-grade municipal bonds.
Low municipal-bond supply could continue throughout 2000, especially if
interest rates trend higher, as expected, throughout the first half of the year.
Overall, the lower supply of bonds should help to shore up prices, as demand
remains strong. Investors can tolerate periodic price swings if they
8
<PAGE> 10
keep long-term perspectives and continue to value the steady stream of
tax-exempt income that municipal bonds provide. As always, we will rely on our
strong research efforts to evaluate opportunities in the marketplace and
identify securities that may offer superior investment potential and value over
time.
9
<PAGE> 11
GLOSSARY OF TERMS
A HELPFUL GUIDE TO SOME OF THE COMMON TERMS YOU'RE LIKELY TO SEE IN THIS REPORT
AND OTHER FINANCIAL PUBLICATIONS.
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.
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 bond's duration, the greater the effect of interest-rate
movements on its price. Typically, funds with shorter durations perform better
in rising rate environments, while funds with longer durations perform better
when rates decline.
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.
MATURITY DATE: The date a bond expires, usually at face value.
MATURITY LENGTH: The time it takes for a bond to mature. A bond issued in 1999
and maturing in 2009 is a 10-year bond.
PREREFUNDING: The process of issuing new bonds to refinance an outstanding
municipal bond issue prior to its maturity or call date. The proceeds from the
new bonds are generally invested in U.S. government securities. Prerefunding
typically occurs when interest rates decline and an issuer replaces its
higher-yielding bonds with current lower-yielding issues.
YIELD SPREAD: The additional yield investors can earn by either investing in
bonds with longer maturities or by investing in bonds with lower ratings. The
spread is the difference in yield between bonds with short versus long
maturities or the difference in yield between high-quality bonds and lower-
quality bonds.
10
<PAGE> 12
BY THE NUMBERS
YOUR TRUST'S INVESTMENTS
April 30, 2000 (Unaudited)
THE FOLLOWING PAGES DETAIL THE SPECIFIC HOLDINGS OF YOUR TRUST AT THE END OF THE
REPORTING PERIOD.
<TABLE>
<CAPTION>
PAR
AMOUNT MARKET
(000) DESCRIPTION COUPON MATURITY VALUE
<C> <S> <C> <C> <C>
MUNICIPAL BONDS 100.6%
ALABAMA 1.5%
$ 4,500 Jefferson Cnty, AL Swr Rev Cap Impt Wts
Ser A (FGIC Insd)....................... 5.125% 02/01/39 $ 3,841,605
2,000 Lauderdale Cnty & Florence, AL Hlthcare
Auth Rev (MBIA Insd).................... 5.375 07/01/29 1,767,520
384 Mobile, AL Indl Dev Brd Solid Waste Disp
Rev Mobile Energy Svcs Co Proj Rfdg
(e)..................................... 6.950 01/01/20 124,729
------------
5,733,854
------------
CALIFORNIA 2.5%
855 California Rural Home Mtg Fin Auth
Single Family Mtg Rev Ser C (GNMA
Collateralized)......................... 7.800 02/01/28 930,531
5,000 Contra Costa, CA Home Mtg Fin Auth Home
Mtg Rev (MBIA Insd)..................... * 09/01/17 1,862,900
10,000 Foothill/Eastern Corridor Agy CA Toll Rd
Rev Cap Apprec Rfdg..................... * 01/15/21 2,644,800
2,000 Foothill/Eastern Corridor Agy CA Toll Rd
Rev Conv Cap Apprec Rfdg (c)............ 0/5.800 01/15/20 1,057,920
4,000 Foothill/Eastern Corridor Agy CA Toll Rd
Rev Conv Cap Apprec Sr Lien Ser A (c)... 0/7.050 01/01/10 3,364,360
------------
9,860,511
------------
COLORADO 4.4%
2,000 Arapahoe Cnty, CO Cap Impt Trust Fund
Hwy Rev E-470 Proj Ser B (Prerefunded @
08/31/05)............................... 7.000 08/31/26 2,231,820
1,500 Colorado Hsg Fin Auth Multi-Family Hsg
Ins Mtg Ser B2.......................... 5.800 10/01/28 1,416,390
1,280 Colorado Hsg Fin Auth Single Family Pgm
Sr Ser A2............................... 7.250 05/01/27 1,368,538
790 Colorado Hsg Fin Auth Single Family Pgm
Sr Ser A3............................... 7.000 11/01/24 812,799
1,500 Colorado Hsg Fin Auth Single Family Pgm
Sr Ser C1............................... 7.550 11/01/27 1,566,615
5,145 Denver, CO City & Cnty Arpt Rev Ser A... 8.875 11/15/12 5,502,217
</TABLE>
See Notes to Financial Statements
11
<PAGE> 13
YOUR TRUST'S INVESTMENTS
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
PAR
AMOUNT MARKET
(000) DESCRIPTION COUPON MATURITY VALUE
<C> <S> <C> <C> <C>
COLORADO (CONTINUED)
$ 1,000 Denver, CO City & Cnty Arpt Rev Ser B
(MBIA Insd)............................. 6.250% 11/15/07 $ 1,056,200
1,005 Greeley, CO Multi-Family Rev Hsg Mtg
Creek Stone (FHA Gtd)................... 5.950 07/01/28 974,227
1,000 Highlands Ranch Metro Dist No 2 CO Rfdg
(FSA Insd).............................. 6.500 06/15/11 1,105,610
1,850 Metropolitan Football Stad Dist CO Sales
Tax Rev Cap Apprec Ser A (MBIA Insd).... * 01/01/11 1,015,336
------------
17,049,752
------------
CONNECTICUT 1.6%
3,250 Connecticut Str Spl Oblig Parking
Bradley Intl Arpt Ser A................. 6.600 07/01/24 3,237,942
1,000 Mashantucket Western Pequot Tribe CT Spl
Rev Ser A, 144A Private
Placement (d)........................... 6.400 09/01/11 1,029,820
840 Mashantucket Western Pequot Tribe CT Spl
Rev Ser A, 144A Private Placement
(Escrowed to Maturity) (d).............. 6.500 09/01/06 906,503
1,000 Mashantucket Western Pequot Tribe CT Spl
Rev Ser A, 144A Private Placement
(Prerefunded @ 09/01/07) (d)............ 6.400 09/01/11 1,087,850
------------
6,262,115
------------
DISTRICT OF COLUMBIA 0.2%
1,000 District of Columbia Rev Gonzaga College
High Sch (FSA Insd)..................... 5.375 07/01/29 913,670
------------
FLORIDA 1.1%
1,250 Florida Ports Fin Comm Rev St Trans
Trust Fund Intermodal Pgm (FGIC Insd)... 5.500 10/01/23 1,189,175
3,000 Florida St Brd Ed Cap Outlay Pub Ed Ser
A (Prerefunded @ 06/01/04).............. 5.875 06/01/16 3,125,490
------------
4,314,665
------------
</TABLE>
See Notes to Financial Statements
12
<PAGE> 14
YOUR TRUST'S INVESTMENTS
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
PAR
AMOUNT MARKET
(000) DESCRIPTION COUPON MATURITY VALUE
<C> <S> <C> <C> <C>
GEORGIA 3.6%
$ 1,250 Atlanta, GA Rpt Rev Amt Genl Ser B (FGIC
Insd)................................... 5.625% 01/01/30 $ 1,177,863
2,824 Fulton Cnty, GA Lease Rev............... 7.250 06/15/10 3,083,993
2,000 George L Smith II GA World Congress Cntr
Auth Rev (MBIA Insd).................... 6.000 07/01/09 2,089,420
7,000 Georgia Muni Elec Auth Pwr Rev Ser A
(MBIA Insd)............................. 6.500 01/01/20 7,643,510
------------
13,994,786
------------
HAWAII 1.5%
5,000 Hawaii St Arpt Sys Rev Ser 2............ 7.000 07/01/18 5,176,650
1,000 Honolulu, HI City & Cnty Wastewtr Sys
Rev Jr Ser (FGIC Insd).................. 4.500 07/01/28 781,430
------------
5,958,080
------------
ILLINOIS 7.4%
2,000 Bolingbrook, IL Cap Apprec Rfdg Ser C
(MBIA Insd)............................. * 01/01/23 496,520
1,000 Champaign Cnty, IL Cmnty Unit Sch Dist
No 116 Urbana Ser C (FGIC Insd)......... * 01/01/17 363,020
6,000 Chicago, IL Brd Ed Cap Apprec Sch Reform
B 1 (FGIC Insd)......................... * 12/01/26 1,164,900
5,000 Chicago, IL O'Hare Intl Arpt Rev Genl
Arpt Second Lien Ser A Rfdg (MBIA
Insd)................................... 6.375 01/01/12 5,217,100
6,400 Chicago, IL Sch Fin Auth Ser A (MBIA
Insd)................................... 5.000 06/01/09 6,224,384
870 Chicago, IL Single Family Mtg Rev Ser A
(GNMA Collateralized)................... 7.000 09/01/27 912,412
670 Chicago, IL Single Family Mtg Rev Ser B
(GNMA Collateralized)................... 7.625 09/01/27 731,486
1,000 Chicago, IL Wstwtr Trnsmssn Rev (MBIA
Insd)................................... 5.750 01/01/25 972,310
2,000 Cook Cnty, IL Cmnty Sch Dist No 15 Cap
Apprec (a).............................. * 12/01/10 1,113,080
3,285 Illinois Hlth Fac Auth Rev Midwest
Physician Group Ltd Proj (Prerefunded @
11/15/04)............................... 8.125 11/15/19 3,722,004
1,000 Metropolitan Pier & Expo Auth IL
Dedicated St Tax Rev McCormick Pl Expn
Proj Rfdg (FGIC Insd)................... 5.500 12/15/24 946,460
2,000 Metropolitan Pier & Expo Auth IL
Dedicated St Tax Rev McCormick Pl Expn
Proj Rfdg (FGIC Insd)................... 5.250 12/15/28 1,784,620
</TABLE>
See Notes to Financial Statements
13
<PAGE> 15
YOUR TRUST'S INVESTMENTS
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
PAR
AMOUNT MARKET
(000) DESCRIPTION COUPON MATURITY VALUE
<C> <S> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 1,475 Regional Tran Auth IL Ser A (AMBAC
Insd)................................... 6.500% 06/01/15 $ 1,551,036
1,410 Sangamon Cnty, IL Cmnty Unit Sch Dist No
5 (FGIC Insd)........................... 6.400 12/01/03 1,473,281
1,865 Sangamon Cnty, IL Cmnty Unit Sch Dist No
5 (FGIC Insd)........................... 6.500 12/01/05 1,989,134
------------
28,661,747
------------
INDIANA 1.3%
2,500 Monroe Cnty, IN Hosp Auth Hosp Rev
Bloomington Hosp Oblig Grp B (FSA
Insd)................................... 5.875 05/01/24 2,446,500
2,500 Purdue Univ, IN Univ Rev Student Fee Ser
B (Prerefunded @ 01/01/05).............. 6.750 07/01/09 2,731,450
------------
5,177,950
------------
KENTUCKY 1.2%
2,000 Georgetown, KY Georgetown College Proj
Rev Ser A (ACA Insd).................... 6.125 11/15/29 1,910,780
1,475 Kenton Cnty, KY Arpt Brd Rev
Cincinnati/Northn KY Intl Arpt Ser A
Rfdg (MBIA Insd)........................ 6.200 03/01/08 1,552,865
1,350 Kentucky Hsg Corp Hsg Rev Ser B......... 6.250 07/01/28 1,360,139
------------
4,823,784
------------
LOUISIANA 0.4%
1,500 New Orleans, LA Rfdg (FGIC Insd)........ 5.500 12/01/21 1,444,005
------------
MAINE 0.7%
1,725 Maine Edl Ln Auth Rev Supplemental Pgm
Ser A1.................................. 7.000 12/01/16 1,783,322
950 Maine Edl Ln Auth Rev Supplemental Pgm
Ser A2.................................. 7.150 12/01/16 983,079
------------
2,766,401
------------
MARYLAND 0.2%
1,000 Maryland St Econ Dev Corp Student Hsg
Rev Collegiate Hsg Towson Ser A......... 5.750 06/01/29 879,560
------------
MASSACHUSETTS 1.3%
2,000 Massachusetts St Hlth & Edl Fac Auth Rev
New England Med Cent Hosp Ser G
(Embedded Swap) (MBIA Insd)............. 5.000 07/01/13 1,851,240
3,000 Plymouth Cnty, MA Ctfs Partn Ser A
(Prerefunded @ 10/01/02)................ 7.000 04/01/22 3,200,940
------------
5,052,180
------------
</TABLE>
See Notes to Financial Statements
14
<PAGE> 16
YOUR TRUST'S INVESTMENTS
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
PAR
AMOUNT MARKET
(000) DESCRIPTION COUPON MATURITY VALUE
<C> <S> <C> <C> <C>
MICHIGAN 2.2%
$ 4,000 Michigan St Strategic Fd Ltd Oblig Rev
Detroit Edison Co Ser A Rfdg (MBIA
Insd)................................... 5.550% 09/01/29 $ 3,698,280
4,500 Monroe Cnty, MI Pollutn Ctl Rev Coll
Detroit Edison Monroe Ser 1 (MBIA
Insd)................................... 6.875 09/01/22 4,736,925
------------
8,435,205
------------
MISSISSIPPI 1.6%
3,730 Mississippi Home Corp Single Family Rev
Mtg Ser C (GNMA Collateralized)......... 7.600 06/01/29 4,039,329
1,985 Mississippi Home Corp Single Family Rev
Mtg Ser F (GNMA Collateralized)......... 7.550 12/01/27 2,149,676
------------
6,189,005
------------
MISSOURI 0.9%
420 Saint Louis Cnty, MO Single Family Mtg
Rev (MBIA Insd)......................... 6.900 04/01/16 424,343
3,000 Sikeston, MO Elec Rev Rfdg
(MBIA Insd) (b)......................... 6.200 06/01/10 3,239,190
------------
3,663,533
------------
NEVADA 1.1%
4,000 Clark Cnty, NV Indl Dev Rev NV Pwr Co
Proj Ser A (FGIC Insd).................. 6.700 06/01/22 4,156,240
------------
NEW JERSEY 6.0%
20,000 New Jersey Econ Dev Auth St Contract
Econ Recovery (MBIA Insd)............... 5.900 03/15/21 20,594,600
1,395 New Jersey Hlthcare Fac Fin Auth Rev
Christ Hosp Group Issue (Connie Lee
Insd)................................... 7.000 07/01/04 1,494,226
1,400 New Jersey Hlthcare Fac Fin Auth Rev
Saint Barnabas Hlth Ser C Rfdg (MBIA
Insd) (a)............................... 5.250 07/01/18 1,304,464
------------
23,393,290
------------
NEW MEXICO 2.2%
480 Hobbs, NM Single Family Mtg Rev Rfdg.... 8.750 07/01/11 522,643
4,405 New Mexico Mtg Fin Auth Single Family
Mtg Pgm Ser G (GNMA Collateralized)..... 7.250 07/01/26 4,636,483
1,500 New Mexico St Hosp Equip Loan Council
Hosp Rev Mem Med Ctr Inc Proj........... 5.500 06/01/28 1,178,640
2,000 University of NM Technology Dev Corp
Lease Rev Univ Cent Resh Pk Proj Ser A
(Prerefunded @ 08/15/04) (MBIA Insd).... 6.450 08/15/18 2,144,440
------------
8,482,206
------------
</TABLE>
See Notes to Financial Statements
15
<PAGE> 17
YOUR TRUST'S INVESTMENTS
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
PAR
AMOUNT MARKET
(000) DESCRIPTION COUPON MATURITY VALUE
<C> <S> <C> <C> <C>
NEW YORK 20.5%
$ 2,000 Metropolitan Tran Auth NY Commuter Facs
Rev Contract............................ 5.500% 07/01/14 $ 1,945,200
1,000 New York City Indl Dev Agy Brooklyn Navy
Yard.................................... 5.650 10/01/28 872,760
1,440 New York City Indl Dev Agy Spl Fac Rev
Terminal One Group Assn Proj............ 6.100 01/01/09 1,471,651
3,000 New York City Indl Dev Agy Spl Fac Rev
Terminal One Group Assn Proj............ 6.000 01/01/15 3,024,780
7,300 New York City Muni Wtr Fin Auth Wtr &
Swr Sys Rev (MBIA Insd)................. 4.750 06/15/25 6,053,014
10,000 New York City Ser A (b)................. 7.000 08/01/07 10,971,600
5,000 New York City Ser A Rfdg................ 7.000 08/01/05 5,393,400
40 New York City Ser D..................... 7.500 02/01/19 42,095
7,960 New York City Ser D (Prerefunded @
02/01/02)............................... 7.500 02/01/19 8,433,461
5,000 New York City Ser H..................... 5.000 03/15/29 4,206,650
2,500 New York City Transitional Fin Auth Rev
Future Tax Secd Ser C................... 5.000 05/01/29 2,138,575
2,750 New York St Dorm Auth Rev Fha Hosp NY &
Presbyterian (AMBAC Insd)............... 4.750 08/01/27 2,255,990
1,500 New York St Dorm Auth Rev Mental Hlth
Svcs Fac Ser A.......................... 5.750 08/15/12 1,502,415
6,060 New York St Dorm Auth Rev City Univ Ser
F....................................... 5.500 07/01/12 5,967,161
1,500 New York St Dorm Auth Rev Dept Ed St of
NY Issue Ser A.......................... 5.800 07/01/22 1,448,550
2,000 New York St Mtg Agy Rev Homeowner Mtg
Ser 90.................................. 6.350 10/01/30 2,040,640
1,835 New York St Mtg Agy Rev Homeowner Mtg
Ser 58.................................. 6.400 04/01/27 1,871,939
6,400 New York St Thruway Auth Svc Contract
Rev Loc Hwy & Brdg...................... 5.750 04/01/09 6,515,712
1,100 New York St Urban Dev Corp Rev
Correctional Cap Fac Ser 4.............. 5.375 01/01/23 994,521
3,350 New York Str Dorm Auth Rev Str Univ Edl
Fac Ser B (FSA Insd).................... 4.750 05/15/28 2,750,182
</TABLE>
See Notes to Financial Statements
16
<PAGE> 18
YOUR TRUST'S INVESTMENTS
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
PAR
AMOUNT MARKET
(000) DESCRIPTION COUPON MATURITY VALUE
<C> <S> <C> <C> <C>
NEW YORK (CONTINUED)
$ 2,985 New York, NY City Muni Wtr Fin Auth Wtr
& Swr Sys Rev (FGIC Insd)............... 5.250% 06/15/29 $ 2,668,948
3,500 Port Auth NY & NJ Cons 97th Ser (FGIC
Insd)................................... 6.650 01/15/23 3,645,600
4,000 Port Auth NY & NJ Spl Oblig Rev Spl Proj
JFK Intl Arpt Terminal 6 (MBIA Insd).... 5.750 12/01/22 3,898,640
------------
80,113,484
------------
NORTH CAROLINA 3.4%
1,500 North Carolina Eastn Mun Pwr Agy Pwr Sys
Rev..................................... 6.700 01/01/19 1,518,045
11,000 North Carolina Muni Pwr Agy No 1 Catawba
Elec Rev (MBIA Insd) (b)................ 6.000 01/01/12 11,560,230
------------
13,078,275
------------
OHIO 1.6%
1,000 Akron, OH Ctfs Partn Akron Muni Baseball
Stad Proj (c)........................... 0/6.500 12/01/07 935,870
3,000 Lucas Cnty, OH Hosp Rev Promedica
Hlthcare Oblig (MBIA Insd).............. 6.000 11/15/07 3,152,910
990 Ohio Hsg Fin Agy Mtg Rev Residential Ser
A1 (GNMA Collateralized)................ 6.150 03/01/29 988,574
1,000 Ohio St Air Quality Dev Auth Rev JMG
Funding Ltd Partn Proj Rfdg (AMBAC
Insd)................................... 6.375 04/01/29 1,019,430
------------
6,096,784
------------
OKLAHOMA 2.7%
1,000 Oklahoma Dev Fin Auth Rev Saint John
Hlth Sys Rfdg........................... 5.750 02/15/25 978,580
1,000 Tulsa Cnty, OK Pub Fac Auth............. 6.250 11/01/22 975,260
2,000 Tulsa, OK Indl Auth Hosp Rev Hillcrest
Med Cent Proj Rfdg (Connie Lee Insd).... 6.125 06/01/05 2,095,820
3,140 Tulsa, OK Indl Auth Hosp Rev Hillcrest
Med Cent Proj Rfdg (Connie Lee Insd).... 6.250 06/01/08 3,362,814
3,000 Tulsa, OK Muni Arpt Tran Rev American
Airls Inc............................... 7.600 12/01/30 3,077,370
------------
10,489,844
------------
PENNSYLVANIA 7.9%
6,655 Berks Cnty, PA Muni Auth Rev Highlands
at Wyomissing Proj Ser B................ 6.875 10/01/17 6,728,937
7,500 Geisinger Auth PA Hlth Sys Ser A
(Prerefunded @ 07/01/02)................ 6.400 07/01/22 7,874,850
1,000 Harrisburg, PA Cap Apprec Rfdg Nts Ser F
(AMBAC Insd)............................ * 03/15/15 420,340
</TABLE>
See Notes to Financial Statements
17
<PAGE> 19
YOUR TRUST'S INVESTMENTS
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
PAR
AMOUNT MARKET
(000) DESCRIPTION COUPON MATURITY VALUE
<C> <S> <C> <C> <C>
PENNSYLVANIA (CONTINUED)
$ 1,865 Harrisburg, PA Cap Apprec Rfdg Ser D
(AMBAC Insd)............................ * 09/15/15 $ 761,424
1,865 Harrisburg, PA Cap Apprec Rfdg Ser D
(AMBAC Insd)............................ * 03/15/16 732,758
1,000 Pennsylvania Intergvtl Coop Auth Spl Tax
Rev City of Philadelphia (Prerefunded @
06/15/02)............................... 6.800% 06/15/22 1,040,160
1,750 Pennsylvania St Tpk Commission Oil
Franchise Tax Rev (AMBAC Insd).......... 4.750 12/01/27 1,439,620
2,500 Philadelphia PA Wtr & Wastewtr Rev Ser A
(AMBAC Insd)............................ 5.125 08/01/27 2,195,825
3,000 Philadelphia, PA Gas Wks Rev First Ser A
(FSA Insd).............................. 5.000 07/01/26 2,583,210
5,000 Pittsburgh & Allegheny Cnty, PA Pub Aud
Auth Regl Asset Dist Sales Tax Rev
(AMBAC Insd)............................ 5.000 02/01/29 4,291,100
3,500 Southeastern PA Trans Auth PA Spl Rev
Ser A (FGIC Insd)....................... 4.750 03/01/24 2,911,930
------------
30,980,154
------------
SOUTH DAKOTA 0.7%
1,375 Deadwood, SD Ctfs Partn (ACA Insd)...... 6.375 11/01/20 1,368,757
1,285 South Dakota St Hlth & Edl Fac Auth
Vocational Ed Pgm Ser A (AMBAC Insd).... 5.400 08/01/13 1,270,634
------------
2,639,391
------------
TENNESSEE 0.2%
1,000 Johnson City, TN Hlth & Edl Rfdg Ser
A....................................... 7.500 07/01/25 965,910
------------
TEXAS 6.0%
19 Austin, TX Utility Sys Rev (Escrowed to
Maturity) (AMBAC Insd).................. 6.500 11/15/05 20,758
981 Austin, TX Utility Sys Rev (AMBAC
Insd)................................... 6.500 11/15/05 1,046,439
1,550 Brazos River Auth TX Rev Houston Inds
Inc Proj Ser D Rfdg (MBIA Insd)......... 4.900 10/01/15 1,385,530
1,000 Brazos River Auth TX Rev Houston
Lighting & Pwr Co Proj Rfdg (AMBAC
Insd)................................... 5.050 11/01/18 877,920
3,000 Dallas Cnty, TX Util & Reclamation Dist
Ser B Rfdg (AMBAC Insd)................. 5.875 02/15/29 2,950,590
1,500 Dallas-Fort Worth, TX Intl Arpt Rev Jt
Ser A (FGIC Insd)....................... 5.750 11/01/30 1,426,695
4,500 Dallas-Fort Worth, TX Intl Arpt Fac Impt
Corp Rev Delta Airls Inc................ 7.000 11/01/01 4,578,840
</TABLE>
See Notes to Financial Statements
18
<PAGE> 20
YOUR TRUST'S INVESTMENTS
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
PAR
AMOUNT MARKET
(000) DESCRIPTION COUPON MATURITY VALUE
<C> <S> <C> <C> <C>
TEXAS (CONTINUED)
$ 2,525 Dallas-Fort Worth, TX Intl Arpt Fac Impt
Corp Rev Delta Airls Inc................ 7.625% 11/01/21 $ 2,587,468
5,000 Ector Cnty, TX Hosp Dist Hosp Rev
(Prerefunded @ 04/15/02) (b)............ 7.300 04/15/12 5,320,850
2,000 Houston, TX Arpt Sys Rev Sub Lien Ser B
(FGIC Insd)............................. 5.000 07/01/25 1,692,580
1,610 Texas Genl Svcs Comm Partn Int Lease
Purch Ctfs, 144A Private Placement
(d)..................................... 7.250 08/15/11 1,642,101
------------
23,529,771
------------
UTAH 0.3%
1,005 Utah St Hsg Fin Agy Single Family Mtg Sr
Issue B3................................ 7.100 07/01/24 1,024,045
------------
VIRGINIA 3.4%
5,000 Richmond, VA (FSA Insd) (a)............. 5.500 01/15/14 4,920,900
8,200 Roanoke, VA Indl Dev Auth Hosp Rev
Roanoke Mem Hosp Ser B Rfdg (MBIA Insd)
(c)..................................... 6.250 07/01/20 8,281,426
------------
13,202,326
------------
WASHINGTON 7.0%
9,850 Bellevue, WA Convention Cent Comp Int
Rfdg (MBIA Insd)........................ * 02/01/25 2,177,441
545 Grant Cnty, WA Pub Util Dist No 2 Priest
Rapids Hydro Elec Ser B (MBIA Insd)..... 5.250 01/01/14 513,728
520 Grant Cnty, WA Pub Util Dist No 2
Wanapum Hydro Elec Rev Ser B Rfdg (MBIA
Insd)................................... 5.375 01/01/18 482,965
1,400 Seattle, WA Wtr Sys Rev (FGIC Insd)..... 5.250 03/01/24 1,263,542
10,975 Washington St Pub Pwr Supply Sys Nuclear
Proj No 1 Rev Ser A Rfdg (MBIA Insd).... 5.700 07/01/17 10,826,289
10,000 Washington St Pub Pwr Supply Sys Nuclear
Proj No 1 Rev Ser B Rfdg (MBIA Insd).... 5.600 07/01/15 9,863,500
5,125 Washington St Pub Pwr Supply Sys Nuclear
Proj No 3 Rev Ser C Rfdg (MBIA Insd).... * 07/01/14 2,266,326
------------
27,393,791
------------
WEST VIRGINIA 2.2%
8,000 Harrison Cnty, WV Cmnty Solid Waste Disp
Rev West Penn Pwr Co Proj Ser A (MBIA
Insd) (b)............................... 6.875 04/15/22 8,378,560
------------
</TABLE>
See Notes to Financial Statements
19
<PAGE> 21
YOUR TRUST'S INVESTMENTS
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
PAR
AMOUNT MARKET
(000) DESCRIPTION COUPON MATURITY VALUE
<C> <S> <C> <C> <C>
WISCONSIN 1.5%
$ 1,000 Madison, WI Indl Dev Rev Madison Gas &
Elec Co Proj Ser A...................... 6.750% 04/01/27 $ 1,030,570
1,500 Southeast WI Professional Baseball Pk
Dist Sales Tax Rev Ser A Rfdg (MBIA
Insd)................................... 5.500 12/15/20 1,459,335
3,500 Wisconsin Hsg & Econ Dev Auth
Homeownership Rev Ser C................. 6.250 09/01/17 3,517,675
------------
6,007,580
------------
WYOMING 0.3%
1,230 Wyoming Cmnty Dev Auth Hsg Rev Ser 2.... 6.350 06/01/29 1,235,806
------------
TOTAL INVESTMENTS 100.6%
(Cost $378,000,486).................................................... 392,348,260
LIABILITIES IN EXCESS OF OTHER ASSETS (0.6%)............................ (2,393,208)
------------
NET ASSETS 100.0%....................................................... $389,955,052
============
</TABLE>
* Zero coupon bond
(a) Securities purchased on a when issued or delayed delivery basis.
(b) Assets segregated as collateral for when-issued or delayed delivery purchase
commitments.
(c) Security is a "Step-up" bond where the coupon increases or steps up at a
predetermined date.
(d) 144A securities are those which are exempt from registration under Rule 144A
of the Securities Act of 1933. These securities may be resold in
transactions exempt from registration which are normally transactions with
qualified institutional buyers.
(e) Issuer has filed for protection in federal bankruptcy court.
ACA--American Capital Access
AMBAC--AMBAC Indemnity Corporation
Connie Lee--Connie Lee Insurance Company
FGIC--Financial Guaranty Insurance Company
FHA--Federal Housing Administration
FSA--Financial Security Assurance Inc.
GNMA--Government National Mortgage Association
MBIA--Municipal Bond Investors Assurance Corp.
See Notes to Financial Statements
20
<PAGE> 22
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
April 30, 2000 (Unaudited)
<TABLE>
<S> <C>
ASSETS:
Total Investments (Cost $378,000,486)....................... $392,348,260
Receivables:
Interest.................................................. 6,498,506
Investments Sold.......................................... 985,119
Other....................................................... 21,487
------------
Total Assets............................................ 399,853,372
------------
LIABILITIES:
Payables:
Investments Purchased..................................... 7,520,134
Custodian Bank............................................ 1,412,444
Income Distributions -- Common and Preferred Shares....... 345,084
Investment Advisory Fee................................... 209,602
Administrative Fee........................................ 64,493
Affiliates................................................ 13,377
Accrued Expenses............................................ 216,008
Trustees' Deferred Compensation and Retirement Plans........ 117,178
------------
Total Liabilities....................................... 9,898,320
------------
NET ASSETS.................................................. $389,955,052
============
NET ASSETS CONSIST OF:
Preferred Shares ($.01 par value, authorized 100,000,000
shares, 6,000 issued with liquidation preference of
$25,000 per share)........................................ $150,000,000
------------
Common Shares ($.01 par value with an unlimited number of
shares authorized, 15,352,891 shares issued and
outstanding).............................................. 153,529
Paid in Surplus............................................. 226,719,758
Net Unrealized Appreciation................................. 14,347,774
Accumulated Undistributed Net Investment Income............. 1,752,302
Accumulated Net Realized Loss............................... (3,018,311)
------------
Net Assets Applicable to Common Shares.................. 239,955,052
------------
NET ASSETS.................................................. $389,955,052
============
NET ASSET VALUE PER COMMON SHARE ($239,955,052 divided by
15,352,891 shares outstanding)............................ $ 15.63
============
</TABLE>
See Notes to Financial Statements
21
<PAGE> 23
Statement of Operations
For the Six Months Ended April 30, 2000 (Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest.................................................... $11,591,155
-----------
EXPENSES:
Investment Advisory......................................... 1,260,203
Administrative Fee.......................................... 387,755
Preferred Share Maintenance................................. 197,146
Legal....................................................... 9,506
Trustees' Fees and Related Expenses......................... 7,223
Custody..................................................... 7,191
Other....................................................... 129,797
-----------
Total Expenses.......................................... 1,998,821
-----------
NET INVESTMENT INCOME....................................... $ 9,592,334
===========
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Gain........................................... 330,579
-----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 15,117,338
End of the Period......................................... 14,347,774
-----------
Net Unrealized Depreciation During the Period............... (769,564)
-----------
NET REALIZED AND UNREALIZED LOSS............................ (438,985)
===========
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $ 9,153,349
===========
</TABLE>
See Notes to Financial Statements
22
<PAGE> 24
Statement of Changes in Net Assets
For the Six Months Ended April 30, 2000 and the Year Ended
October 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31, 1999
------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income.............................. $ 9,592,334 $ 19,126,941
Net Realized Gain/Loss............................. 330,579 (1,497,207)
Net Unrealized Depreciation During the Period...... (769,564) (28,730,229)
------------ ------------
Change in Net Assets from Operations............... 9,153,349 (11,100,495)
------------ ------------
Distributions from Net Investment Income:
Common Shares.................................... (6,908,801) (13,817,135)
Preferred Shares................................. (2,806,958) (4,859,701)
------------ ------------
Total Distributions................................ (9,715,759) (18,676,836)
------------ ------------
NET CHANGE IN NET ASSETS FROM
INVESTMENT ACTIVITIES............................ (562,410) (29,777,331)
NET ASSETS:
Beginning of the Period............................ 390,517,462 420,294,793
------------ ------------
End of the Period (Including accumulated
undistributed net investment income of $1,752,302
and $1,875,727, respectively).................... $389,955,052 $390,517,462
============ ============
</TABLE>
See Notes to Financial Statements
23
<PAGE> 25
Financial Highlights
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE
TRUST OUTSTANDING THROUGHOUT THE PERIODS INDICATED. (UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS ENDED -------------------
APRIL 30, 2000 1999 1998
---------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF THE PERIOD
(A)........................................ $ 15.666 $ 17.605 $16.955
-------- -------- -------
Net Investment Income...................... .625 1.246 1.255
Net Realized and Unrealized Gain/Loss...... (.029) (1.968) .643
-------- -------- -------
Total from Investment Operations............. .596 (.722) 1.898
-------- -------- -------
Less:
Distributions from Net Investment Income:
Paid to Common Shareholders.............. .450 .900 .900
Common Share Equivalent of Distributions
Paid to Preferred Shareholders......... .183 .317 .348
Distributions from Net Realized Gains:
Paid to Common Shareholders.............. -0- -0- -0-
Common Share Equivalent of Distributions
Paid to Preferred Shareholders......... -0- -0- -0-
-------- -------- -------
Total Distributions.......................... .633 1.217 1.248
-------- -------- -------
NET ASSET VALUE, END OF THE PERIOD........... $ 15.629 $ 15.666 $17.605
======== ======== =======
Market Price Per Share at End of
the Period................................. $13.3125 $ 13.500 $16.500
Total Investment Return at
Market Price (b)........................... 1.96%* -13.29% 15.91%
Total Return at Net Asset Value (c).......... 2.66%* - 6.16% 9.35%
Net Assets at End of the Period
(In millions).............................. $ 390.0 $ 390.5 $ 420.3
Ratio of Expenses to Average Net Assets
Applicable to Common Shares**.............. 1.67% 1.62% 1.61%
Ratio of Net Investment Income to Average Net
Assets Applicable to Common Shares (d)..... 5.68% 5.48% 5.24%
Portfolio Turnover........................... 18%* 30% 29%
* Non-Annualized
** Ratio of Expenses to Average Net Assets
Including Preferred Shares................ 1.03% 1.03% 1.03%
</TABLE>
(a) Net Asset Value at April 24, 1992, is adjusted for common and preferred
share offering costs of $.229 per common share.
(b) Total return based on market price assumes an investment at the market price
at the beginning of the period indicated, reinvestment of all distributions
for the period in accordance with the Trust's dividend reinvestment plan,
and sale of all shares at the closing common stock price at the end of the
period indicated.
(c) 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.
(d) Net Investment Income is adjusted for the common share equivalent of
distributions paid to preferred shareholders.
24
<PAGE> 26
<TABLE>
<CAPTION>
APRIL 24, 1992
(COMMENCEMENT
YEAR ENDED OCTOBER 31, OF INVESTMENT
----------------------------------------------------- OPERATIONS) TO
1997 1996 1995 1994 1993 OCTOBER 31, 1992
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 16.121 $15.846 $14.389 $17.297 $14.990 $14.771
-------- ------- ------- ------- ------- -------
1.253 1.271 1.275 1.303 1.354 .611
.830 .266 1.584 (2.918) 2.332 .083
-------- ------- ------- ------- ------- -------
2.083 1.537 2.859 (1.615) 3.686 .694
-------- ------- ------- ------- ------- -------
.900 .906 1.012 1.020 1.020 .340
.349 .356 .390 .273 .282 .135
-0- -0- -0- -0- .057 -0-
-0- -0- -0- -0- .020 -0-
-------- ------- ------- ------- ------- -------
1.249 1.262 1.402 1.293 1.379 .475
-------- ------- ------- ------- ------- -------
$ 16.955 $16.121 $15.846 $14.389 $17.297 $14.990
======== ======= ======= ======= ======= =======
$15.0625 $13.750 $13.625 $13.000 $16.375 $14.500
16.54% 7.72% 12.70% -14.96% 20.85% -1.16%*
11.11% 7.61% 17.74% -11.30% 23.17% 2.10%*
$ 410.3 $ 397.5 $ 393.3 $ 370.9 $ 415.6 $ 380.1
1.64% 1.66% 1.75% 1.69% 1.62% 1.54%
5.51% 5.73% 5.87% 6.43% 6.51% 5.82%
49% 85% 70% 76% 52% 53%*
1.03% 1.03% 1.06% 1.05% 1.02% 1.04%
</TABLE>
See Notes to Financial Statements
25
<PAGE> 27
NOTES TO
FINANCIAL STATEMENTS
April 30, 2000 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen Municipal Opportunity Trust, (the "Trust") is registered as a
diversified closed-end management investment company under the Investment
Company Act of 1940, as amended. The Trust's investment objective is to provide
a high level of current income exempt from federal income tax, consistent with
preservation of capital. The Trust will invest in a portfolio consisting
substantially of municipal obligations rated investment grade at the time of
investment. The Trust commenced investment operations on April 24, 1992.
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 Municipal bonds are valued by independent pricing services
or dealers using the mean of the bid and asked prices or, in the absence of
market quotations, at fair value based upon yield data relating to municipal
bonds with similar characteristics and general market conditions. Securities
which are not valued by independent pricing services are valued at fair value
using 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, which approximates market value.
B. SECURITY TRANSACTIONS Security transactions are recorded on a trade date
basis. Realized gains and losses are determined on an identified cost basis. The
Trust may purchase and sell securities on a "when-issued" or "delayed delivery"
basis, with settlement to occur at a later date. The value of the security so
purchased is subject to market fluctuations during this period. The Trust will
maintain, in a segregated account with its custodian, assets having an aggregate
value at least equal to the amount of the when-issued or delayed delivery
purchase commitments until payment is made.
C. INVESTMENT INCOME Interest income is recorded on an accrual basis. Bond
premium is amortized and original issue discount is accreted over the expected
life of each applicable security.
26
<PAGE> 28
NOTES TO
FINANCIAL STATEMENTS
April 30, 2000 (Unaudited)
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.
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, 1999, the Trust had an accumulated capital loss
carryforward for tax purposes of $3,348,890 which will expire between October
31, 2003 and October 31, 2007.
At April 30, 2000, for federal income tax purposes, cost of long-term
investments is $378,000,486; the aggregate gross unrealized appreciation is
$17,536,356 and the aggregate gross unrealized depreciation is $3,188,582
resulting in net unrealized appreciation on long-term investments of
$14,347,774.
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.
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 .65% 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.
For the six months ended April 30, 2000, the Trust recognized expenses of
approximately $2,000 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 six months ended April 30, 2000, the Trust recognized expenses of
approximately $20,200 representing Van Kampen's cost of providing accounting and
legal services to the Trust.
27
<PAGE> 29
NOTES TO
FINANCIAL STATEMENTS
April 30, 2000 (Unaudited)
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 per trustee under the plan is $2,500.
3. INVESTMENT TRANSACTIONS
During the period, the cost of purchases and proceeds from sales of
investments, excluding short-term investments, were $71,212,318 and
$77,556,460, 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 unrealized
appreciation/depreciation. Upon disposition, a realized gain or loss is
recognized accordingly, except when taking delivery of a security underlying a
futures contract. In this instance, the recognition of gain or loss is postponed
until the disposal of the security underlying the futures contract.
Summarized below are the 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 contracts prior to the delivery date. These
contracts are generally used to manage the portfolio's effective maturity and
duration.
Upon entering into futures contracts, the Trust maintains, in a segregated
account with its custodian, cash or liquid securities with a value equal to its
obligation under the futures contracts. During the period the futures contract
is open, payments are received from or made to the broker based upon changes in
the value of the contract (the variation margin).
28
<PAGE> 30
NOTES TO
FINANCIAL STATEMENTS
April 30, 2000 (Unaudited)
There were no transactions in futures contracts during the six months ended
April 30, 2000.
B. INDEXED SECURITIES These instruments are identified in the portfolio of
investments. Their price may be more volatile than the price of a comparable
fixed rate security.
An Embedded Swap security includes a swap component such that the fixed
coupon component of the underlying bond is adjusted by the difference between
the securities fixed swap rate and the floating swap index. 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 6,000 Auction Preferred Shares ("APS") in two series
of 3,000 shares each. Dividends are cumulative and the dividend rate on each
series is currently reset every 28 days through an auction process. The average
rate in effect on April 30, 2000 was 3.90%. During the six months ended April
30, 2000, the rates ranged from 3.40% to 4.00%.
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 $25,000 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.
29
<PAGE> 31
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
30
<PAGE> 32
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 Funds Inc.
Attn: Closed-End Funds
2800 Post Oak Blvd.
Houston, TX 77056
31
<PAGE> 33
VAN KAMPEN FUNDS
THE VAN KAMPEN
FAMILY OF FUNDS
Growth
Aggressive Growth
American Value*
Emerging Growth
Enterprise
Equity Growth
Focus Equity
Growth*
Mid Cap Growth
Pace
Small Cap Value
Tax Managed Equity Growth
Technology
Growth and Income
Comstock
Equity Income
Growth and Income
Harbor
Real Estate Securities
Utility
Value
Global/International
Asian Growth
Emerging Markets
European Equity
Global Equity
Global Equity Allocation
International Magnum
Latin American
Strategic Income
Tax Managed Global Franchise
Worldwide High Income
Income
Corporate Bond
Government Securities
High Income Corporate Bond
High Yield
High Yield & Total Return
Limited Maturity Government
U.S. Government
U.S. Government Trust for Income
Capital Preservation
Reserve
Tax Free Money
Senior Loan
Prime Rate Income Trust
Senior Floating Rate
Tax Free
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
To find out more about any of these funds, ask your financial advisor for a
prospectus, which contains more complete information, including sales charges,
risks, and ongoing 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 [COMPUTER ICON]
- 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.
[PHONE ICON]
- e-mail us by visiting
WWW.VANKAMPEN.COM and
selecting Contact Us
[MAIL ICON]
* Closed to new investors
** Open to new investors for a limited time
32
<PAGE> 34
TRUST OFFICERS AND IMPORTANT ADDRESSES
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST
BOARD OF TRUSTEES
DAVID C. ARCH
ROD DAMMEYER
HOWARD J KERR
THEODORE A. MYERS
RICHARD F. POWERS, III* - Chairman
HUGO F. SONNENSCHEIN
WAYNE W. WHALEN*
OFFICERS
RICHARD F. POWERS, III*
President
STEPHEN L. BOYD*
Executive Vice President and
Chief Investment Officer
A. THOMAS SMITH III*
Vice President and Secretary
JOHN L. SULLIVAN*
Vice President, Treasurer and
Chief Financial Officer
RICHARD A. CICCARONE*
JOHN R. REYNOLDSON*
MICHAEL H. SANTO*
JOHN H. ZIMMERMANN, III*
Vice Presidents
INVESTMENT ADVISER
VAN KAMPEN INVESTMENT ADVISORY CORP.
1 Parkview Plaza
P.O. Box 5555
Oakbrook Terrace, Illinois 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(1)
DELOITTE & TOUCHE LLP
180 North Stetson Avenue
Chicago, Illinois 60601
(1) Independent accountants for the Trust perform an annual audit of the Trust's
financial statements. The Board of Trustees has engaged Deloitte & Touche
LLP to be the Trust's independent accountants.
KPMG LLP, located at 303 West Wacker Drive, Chicago, IL 60601 ("KPMG"),
ceased being the Trust's independent accountants effective April 14, 2000.
The cessation of the client- auditor relationship between the Trust and KPMG
was based solely on a possible future business relationship by KPMG with an
affiliate of the Trust's investment adviser.
* "Interested persons" of the Trust, as defined in the Investment Company Act
of 1940, as amended.
(C) Van Kampen Funds Inc., 2000. All rights reserved.
(SM) denotes a service mark of Van Kampen Funds Inc.
33
