<PAGE> 1
TABLE OF CONTENTS
<TABLE>
<S> <C>
Letter to Shareholders........................... 1
Performance Results.............................. 4
Portfolio of Investments......................... 5
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>
VOT SAR 6/96
<PAGE> 2
LETTER TO SHAREHOLDERS
May 15, 1996
Dear Shareholder,
While interest rates drifted
downward during the fourth quarter of
last year, such was not the case in the
first quarter of 1996. Early in the
quarter, municipal bond prices
demonstrated increased volatility in [PHOTO]
conjunction with February's economic
announcements, which revealed a revival
in economic growth, impressive
employment levels, and moderate
inflation. This positive economic
environment, however, did not translate
into positive movement for the bond markets. Instead, the markets became wary,
because inflation often accompanies economic growth.
Other factors influencing the municipal bond market early in the year
included:
- Intense weather conditions, which hindered distribution and manufacturing,
were experienced by much of the United States and affected certain
municipal bond sectors.
- The expectation that a federal budget agreement was forthcoming helped
bolster municipal bonds, especially at the longer end of the spectrum.
- The proposal of tax reform--and the threat of municipal bonds having
diminished tax-exempt status--continued to dampen demand for municipals,
resulting in lower bond prices.
We believe the beginning of 1996 reflected the market's reaction to the
possibility of a return to long-term economic growth. This, coupled with
continued low inflationary conditions, has served to put the Federal Reserve
Board in a neutral policy mode, bringing relative calm to the market--although
currently at higher interest rate levels.
PERFORMANCE SUMMARY
The Van Kampen American Capital Municipal Opportunity Trust II's (ticker
symbol VOT) common stock price declined 1 percent during the six-month period,
closing at $11.25, while the general municipal bond market was down 4 percent
for the same period, according to the Bond Buyer's 40 Municipal Bond Index.
For the six months ended April 30, 1996, the Trust posted a total return of
2.10 percent(1), based on market price. Longer term, the Trust's one-year total
return was 2.13 percent(1), based on market price for the period ended April 30,
1996, including reinvestment of dividends.
Continued on page two
1
<PAGE> 3
Many closed-end municipal bond funds are currently offering higher after-tax
yields than taxable income alternatives, and your Trust is no exception. Based
on the closing common stock price on April 30, 1996, the Municipal Opportunity
Trust II had a tax-exempt distribution rate of 6.67 percent(3). In other words,
investors in the 36 percent federal income tax bracket would have to earn a
yield of 10.42 percent(4) on a taxable investment to equal your Trust's
tax-exempt distribution rate.
MARKET OUTLOOK
The economy rebounded in the first quarter of 1996, despite poor weather in
the East and the remnants of a slow fourth quarter of 1995, which was hindered
by weak construction activity, two government shutdowns, and a strike at Boeing.
We believe the momentum of the first quarter can carry into the second, due in
part to renewed auto production in the aftermath of the General Motors strike
and an end to the budget stalemate between the White House and Congress. We
expect a modest slowdown in the summer months, as higher interest rates could
slow activity in interest-sensitive sectors of the economy, such as housing.
Top 5 Portfolio Holdings by Industry as of April 30, 1996
Health Care....................... 21.3%
Single-Family Housing............. 12.2%
Industrial Revenue................ 10.6%
Retail Electric/Gas/Telephone..... 8.5%
General Purpose................... 8.2%
The Fed's protracted period of easing, and relatively neutral stance, favors
the growth we are currently experiencing. Given the strong employment situation
and commodity price increases, we think the Fed will await further economic
evidence before adjusting interest rates again probably summertime at the
earliest. So far, guides such as the Consumer Price Index continue to indicate
modest levels of inflation. More importantly, we continue to see few signs of
emerging inflation in either unit labor costs, hourly earnings or the employment
cost index.
- --------------------------------------------------------------------------------
INVESTMENT TERM: REVENUE BONDS
Revenue bonds are one of the three most common types of municipal bonds--the
other two are general obligation bonds and municipal notes. Revenue bonds
are issued to finance income-generating projects such as turnpikes, toll
bridges and airports. The revenues these projects bring in are used to pay
interest and principal to bondholders.
- --------------------------------------------------------------------------------
Continued on page three
2
<PAGE> 4
Finally, as the November elections approach, the debate on tax reform may
grow. We believe the outcome in the long run will be positive, or at worst
neutral, for municipal bonds. That's good news for the market, which was
concerned that flat tax proposals could threaten the tax-exempt status of
municipal bonds. While the debate may not be over and legislation may be
forthcoming, the market should be more confident.
[CREDIT QUALITY GRAPH]
Portfolio Composition by Credit Quality
as of April 30, 1996
<TABLE>
<S> <C>
AAA........... 62.0%
AA............ 10.0%
A............. 10.0%
BBB........... 16.0%
BB............ 1.0%
B............. 1.0%
</TABLE>
BASED UPON CREDIT QUALITY RATINGS ISSUED BY STANDARD & POOR'S.
FOR SECURITIES NOT RATED BY STANDARD & POOR'S, THE MOODY'S RATING IS USED.
Indeed, we expect investor demand for municipal securities to exceed supply,
which should add price stability to the general market. And with municipal bond
yields currently at attractive levels relative to Treasuries, investor demand
for tax-exempt securities should increase.
In summary, our view of the general municipal market is positive. From the
decreasing likelihood of tax reform in the near term to specific market
conditions, we believe the market is on solid ground. With our dedication to
comprehensive research and long-term investment perspective, we believe your
Trust is in a position to benefit in the coming months.
Sincerely,
[SIG]
Don G. Powell
Chairman
Van Kampen American Capital
Investment Advisory Corp.
[SIG]
Dennis J. McDonnell
President
Van Kampen American Capital
Investment Advisory Corp.
3
<PAGE> 5
PERFORMANCE RESULTS FOR THE PERIOD ENDED APRIL 30, 1996
VAN KAMPEN AMERICAN CAPITAL MUNICIPAL OPPORTUNITY TRUST II
(NYSE TICKER SYMBOL--VOT)
<TABLE>
<CAPTION>
COMMON SHARE TOTAL RETURNS
<S> <C>
Six-month total return based on market price(1)........... 2.10%
Six-month total return based on NAV(2).................... .03%
DISTRIBUTION RATES
Distribution rate as a % of closing common stock
price(3)................................................ 6.67%
Taxable-equivalent distribution rate as a % of closing
common stock price(4)................................... 10.42%
SHARE VALUATIONS
Net asset value........................................... $ 13.36
Closing common stock price................................ $11.250
Six-month high common stock price (02/23/96).............. $12.125
Six-month low common stock price (04/30/96)............... $11.125
Preferred share (Series A) rate(5)........................ 3.850%
Preferred share (Series B) rate(5)........................ 3.900%
Preferred share (Series C) rate(5)........................ 3.855%
</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 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.
4
<PAGE> 6
PORTFOLIO OF INVESTMENTS
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS
ALASKA 2.9%
$ 5,000 Alaska St Hsg Fin Corp Ser A (MBIA Insd)......... 5.875% 12/01/30 $ 4,776,150
3,000 North Slope Borough, AK Ser B (FSA Insd)......... 6.100 06/30/99 3,139,080
------------
7,915,230
------------
ARIZONA 1.6%
4,000 Pima Cnty, AZ Indl Dev Auth Indl Rev Lease Oblig
Irvington Proj Tucson Ser A Rfdg (FSA Insd)...... 7.250 07/15/10 4,386,120
------------
CALIFORNIA 11.6%
4,600 California St Pub Wks Brd Lease Rev Var Univ CA
Proj A Rfdg...................................... 5.500 06/01/10 4,478,928
5,905 California St Pub Wks Brd Lease Rev Var Univ CA
Proj A Rfdg...................................... 5.500 06/01/14 5,641,047
2,000 Foothill/Eastern Tran Corridor Agy CA Toll Road
Rev Ser A........................................ 6.500 01/01/32 1,979,220
2,000 Imperial Irrigation Dist CA Ctfs Partn Elec Sys
Proj (MBIA Insd)................................. 6.750 11/01/11 2,179,640
2,860 Los Angeles Cnty, CA Metro Tran Auth Sales Tax
Rev Ppty Ser A Rfdg (FGIC Insd).................. 5.000 07/01/21 2,479,105
11,500 Los Angeles, CA Dept Wtr & Pwr Elec Plant Rev
Crossover Rfdg (FGIC Insd) (c)................... 5.375 09/01/23 10,531,930
1,500 San Bernardino, CA Jt Pwrs Fin Ser A Rfdg (FSA
Insd)............................................ 5.500 10/01/10 1,473,585
3,000 Southern CA Pub Pwr Auth Pwr Proj Rev San Juan
Unit 3 Ser A (MBIA Insd)......................... 5.000 01/01/20 2,607,810
------------
31,371,265
------------
COLORADO 3.9%
1,000 Arapahoe Cnty, CO Cap Impt Trust Fund Hwy Rev
E-470 Proj Ser B................................. 7.000 08/31/26 1,045,740
7,500 Arapahoe Cnty, CO Cap Impt Trust Fund Hwy Rev
E-470 Proj Ser C................................. * 08/31/26 809,100
1,600 Denver, CO City & Cnty Arpt Rev Ser A............ 6.900 11/15/98 1,690,816
1,250 Denver, CO City & Cnty Arpt Rev Ser A............ 7.000 11/15/99 1,334,363
2,650 Denver, CO City & Cnty Arpt Rev Ser B............ 7.250 11/15/05 2,839,872
1,000 Denver, CO City & Cnty Arpt Rev Ser B............ 7.250 11/15/07 1,065,030
1,500 Denver, CO City & Cnty Arpt Rev Ser D............ 7.750 11/15/13 1,736,745
------------
10,521,666
------------
CONNECTICUT 2.0%
5,035 Connecticut St Dev Auth Pkg Fac Hartford Hosp Rev
(MBIA Insd)...................................... 6.875 10/01/06 5,365,799
------------
DISTRICT OF COLUMBIA 3.0%
3,000 District of Columbia Hosp Rev Medlantic Hlthcare
Group Ser A Rfdg (MBIA Insd) (b)................. 5.750 08/15/16 2,893,650
3,000 District of Columbia Rev Carnegie Endowment...... 5.750 11/15/26 2,857,230
2,370 District of Columbia Ser E (FSA Insd)............ 6.000 06/01/11 2,378,082
------------
8,128,962
------------
</TABLE>
See Notes to Financial Statements
5
<PAGE> 7
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
----------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA 6.4%
$ 3,435 Dade Cnty, FL Aviation Rev (MBIA Insd)........... 5.750% 10/01/12 $ 3,459,114
2,000 Dade Cnty, FL Genl Oblig Seaport Bonds (AMBAC
Insd)............................................ 6.500 10/01/26 2,193,460
1,070 Florida Hsg Fin Agy Single Family Mtg Ser A
Rfdg............................................. 6.550 07/01/14 1,084,873
3,000 Hillsborough Cnty, FL Cap Impt Pgm Rev Criminal
Justice Fac Rfdg (FGIC Insd)..................... 5.250 08/01/16 2,786,040
2,000 Hillsborough Cnty, FL Indl Dev Auth Pollutn Ctl
Rev Tampa Elec Co Proj Ser 92 Rfdg............... 8.000 05/01/22 2,341,940
1,000 Jacksonville, FL Hosp Rev Univ Med Cent Inc Proj
(Connie Lee Insd)................................ 6.500 02/01/11 1,057,480
4,500 Pinellas Cnty, FL Hsg Fin Auth Single Family Mtg
Rev Multi Cnty Ser A (GNMA Collateralized)....... 6.650 08/01/21 4,548,285
------------
17,471,192
------------
GEORGIA 0.7%
2,000 Burke Cnty, GA Dev Auth Pollutn Ctl Rev GA Pwr Co
Plant Vogtle Proj (MBIA Insd).................... 6.350 05/01/19 2,020,920
------------
ILLINOIS 5.7%
3,365 Chicago, IL Cap Apprec (AMBAC Insd).............. * 01/01/17 879,510
5,000 Chicago, IL Single Family Mtg Rev Coll Ser A
(GNMA Collateralized)............................ 7.000 09/01/27 5,432,600
4,305 Illinois Hlth Fac Auth Rev OSF Hlthcare Sys
Rfdg............................................. 6.000 11/15/10 4,221,096
1,000 Illinois Hlth Fac Auth Rev Ravenswood Hosp Med
Cent Ser A Rfdg.................................. 8.800 06/01/06 1,051,800
3,500 Peoria, Moline & Freeport, IL Coll Mtg Ser A
(GNMA Collateralized)............................ 7.600 04/01/27 3,750,145
------------
15,335,151
------------
INDIANA 2.5%
1,165 Concord, IN Cmnty Sch Bldg Corp 1st Mtg (FSA
Insd)............................................ 7.000 07/01/11 1,273,997
2,000 East Chicago, IN Elementary Sch Bldg Corp 1st Mtg
Ser A............................................ 6.250 07/05/08 2,079,400
3,000 Indiana Hlth Fac Fin Auth Hosp Rev Columbus Regl
Hosp Rfdg (FSA Insd)............................. 7.000 08/15/15 3,393,600
------------
6,746,997
------------
IOWA 0.4%
1,200 Ottumwa, IA Hosp Fac Rev Rfdg.................... 6.000 10/01/18 1,093,476
------------
LOUISIANA 2.4%
3,000 De Soto Parish, LA Pollutn Ctl Rev
Southwestern Elec Pwr Rfdg....................... 7.600 01/01/19 3,385,260
2,800 Saint Charles Parish, LA Solid Waste Disp Rev LA
Pwr & Lt Co Proj (FSA Insd)...................... 7.050 04/01/22 3,003,112
------------
6,388,372
------------
MAINE 0.9%
2,500 Maine St Hsg Auth Mtg Purp Ser C2................ 6.875 11/15/23 2,552,950
------------
</TABLE>
See Notes to Financial Statements
6
<PAGE> 8
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
----------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MASSACHUSETTS 3.1%
$ 1,700 Massachusetts St Hlth & Edl Fac Auth Rev Cape Cod
Hlth Ser A-3 (Embedded Swap) (Connie Lee Insd)... 5.000% 11/15/11 $ 1,547,306
4,000 Massachusetts St Hlth & Edl Fac Auth Rev Saint
Mem Med Cent Ser A............................... 6.000 10/01/23 3,247,080
3,500 Massachusetts St Hsg Fin Agy Hsg Rev Insd Rental
Ser A Rfdg (AMBAC Insd).......................... 6.600 07/01/14 3,596,075
------------
8,390,461
------------
MICHIGAN 3.4%
1,000 Battle Creek, MI Downtown Dev Auth Tax Increment
Rev.............................................. 7.600 05/01/16 1,087,310
3,300 Michigan St Bldg Auth Rev (MBIA Insd)............ 6.250 10/01/20 3,385,305
1,500 Michigan St Hsg Dev Auth Multi Family Rev Ltd
Oblig Ser A Rfdg (GNMA Collateralized)........... 6.600 04/01/30 1,546,995
5,000 Romulus, MI Cmnty Sch Rfdg (FSA Insd)............ * 05/01/13 1,794,050
4,000 Romulus, MI Cmnty Sch Rfdg (FSA Insd)............ * 05/01/14 1,351,280
------------
9,164,940
------------
MISSISSIPPI 0.6%
1,500 Claiborne Cnty, MS Pollutn Ctl Rev Sys Energy Res
Inc Rfdg......................................... 7.300 05/01/25 1,553,820
------------
MISSOURI 2.1%
1,500 Saint Louis Cnty, MO Mtg Rev Ctfs Receipt Ser
H................................................ 5.400 07/01/18 1,397,610
5,000 Sikeston, MO Elec Rev Rfdg (MBIA Insd)........... 5.000 06/01/22 4,407,400
------------
5,805,010
------------
NEVADA 2.2%
2,970 Clark Cnty, NV Indl Dev Rev NV Pwr Co Proj C Rfdg
(AMBAC Insd)..................................... 7.200 10/01/22 3,282,592
3,000 Clark Cnty, NV Passenger Fac Las Vegas Macarran
Intl Arpt (MBIA Insd)............................ 5.750 07/01/23 2,829,030
------------
6,111,622
------------
NEW JERSEY 4.3%
1,000 New Jersey Econ Dev Auth Rev Clara Maass Hlth Sys
Proj (FSA Insd).................................. 5.000 07/01/25 881,020
1,000 New Jersey Hlthcare Fac Fin Auth Rev Genl Hosp
Cent at Passaic (FSA Insd)....................... 6.000 07/01/06 1,066,960
1,750 New Jersey Hlthcare Fac Fin Auth Rev Hackensack
Med Cent Rfdg (FGIC Insd)........................ 6.625 07/01/17 1,845,585
5,630 Salem Cnty, NJ Indl Pollutn Ctl Fin Auth Rev
Pollutn Ctl Pub Svc Elec & Gas Ser A (MBIA
Insd)............................................ 5.450 02/01/32 5,118,402
2,500 Secaucus, NJ Muni Util Auth Swr Rev Ser A Rfdg... 6.000 12/01/08 2,641,300
------------
11,553,267
------------
NEW YORK 9.8%
1,485 New York City Muni Wtr Fin Auth Wtr & Swr Sys Rev
Ser A............................................ 7.000 06/15/09 1,609,280
1,515 New York City Muni Wtr Fin Auth Wtr & Swr Sys Rev
Ser A (Prerefunded @ 06/15/01)................... 7.000 06/15/09 1,686,452
</TABLE>
See Notes to Financial Statements
7
<PAGE> 9
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
----------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
NEW YORK (CONTINUED)
$ 2,500 New York City Ser A Rfdg......................... 7.000% 08/01/04 $ 2,707,875
5,000 New York City Ser A-1............................ 6.375 08/01/10 5,025,300
2,000 New York City Ser B (MBIA Insd) (c).............. 6.950 08/15/12 2,173,620
1,800 New York City Ser E Rfdg......................... 6.600 08/01/03 1,902,600
1,000 New York St Dorm Auth Rev City Univ 3rd Genl
Resources Ser 2 (MBIA Insd)...................... 6.250 07/01/19 1,018,760
1,520 New York St Dorm Auth Rev Insd John T Mather Mem
Hosp (Connie Lee Insd)........................... 6.500 07/01/09 1,635,794
970 New York St Energy Research & Dev Auth St Service
Contract Rev..................................... 5.750 04/01/03 976,547
835 New York St Energy Research & Dev Auth St Service
Contract Rev..................................... 5.400 04/01/04 816,572
500 New York St Energy Research & Dev Auth St Service
Contract Rev..................................... 5.500 04/01/05 487,945
500 New York St Energy Research & Dev Auth St Service
Contract Rev..................................... 5.500 04/01/06 482,210
1,500 New York St Loc Govt Assistance Corp Ser A....... 6.875 04/01/19 1,639,425
1,145 New York St Med Care Fac Fin Agy Rev Mental Hlth
Svcs Fac Ser A (AMBAC Insd)...................... 5.800 08/15/22 1,112,574
1,375 New York St Med Care Fac Fin Agy Rev Mental Hlth
Svcs Fac Ser D (MBIA Insd)....................... 5.900 02/15/10 1,405,181
2,000 New York St Urban Dev Corp Rev Correctional Fac
Ser A Rfdg....................................... 5.500 01/01/16 1,813,500
------------
26,493,635
------------
NORTH CAROLINA 1.0%
3,000 Martin Cnty, NC Indl Fac & Pollutn Ctl Fin Auth
Rev Solid Waste Wyerhaeuser Co................... 5.650 12/01/23 2,763,810
------------
NORTH DAKOTA 0.4%
1,110 Ward Cnty, ND Hlthcare Fac Rev Saint Joseph Hosp
Corp Proj........................................ 8.875 11/15/24 1,203,540
------------
OHIO 4.3%
1,000 Cleveland Rock Glen Hsg Assistance Corp OH Mtg
Rev Ser A Rfdg (FHA Gtd)......................... 6.625 01/15/18 1,028,150
1,250 Cuyahoga Cnty, OH Hosp Rev Fairview Genl &
Lutheran (MBIA Insd)............................. 6.250 08/15/10 1,299,088
2,000 Franklin Cnty, OH Hosp Rev Holy Cross Hlth Sys
Ser B Rfdg (MBIA Insd)........................... 5.250 06/01/08 1,979,640
1,040 Lorain Cnty, OH Hosp Rev EMH Regional Med Cent
Rfdg (AMBAC Insd)................................ 7.750 11/01/13 1,213,243
1,400 Lucas Cnty, OH Hosp Rev.......................... 7.625 06/01/15 1,430,198
2,395 Lucas Cnty, OH Hosp Rev Impt Saint Vincent Med
Cent (MBIA Insd) (c)............................. 6.625 08/15/22 2,621,423
</TABLE>
See Notes to Financial Statements
8
<PAGE> 10
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
----------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
OHIO (CONTINUED)
$ 2,000 Ohio St Wtr Dev Auth Solid Waste Disposal Rev.... 6.300% 09/01/20 $ 2,045,320
------------
11,617,062
------------
OKLAHOMA 1.5%
2,250 Shawnee, OK Hosp Auth Hosp Rev Midamerica
Hlthcare Inc
Rfdg............................................. 6.125 10/01/14 2,111,850
1,975 Tulsa, OK Muni Arpt Tran Rev American Airls
Inc.............................................. 7.375 12/01/20 2,090,676
------------
4,202,526
------------
PENNSYLVANIA 7.6%
2,000 Cumberland Cnty, PA Muni Auth Rev 1st Mtg
Carlisle Hosp & Hlth............................. 6.800 11/15/23 1,925,440
3,500 Delaware Cnty, PA Auth Hlthcare Rev Mercy Hlth
Corp of Southeastn PA Ser A Rfdg (Connie Lee
Insd)............................................ 5.375 11/15/23 3,187,205
1,500 Pennsylvania Econ Dev Fin Auth Resources Recovery
Rev Colver Proj Ser D............................ 7.050 12/01/10 1,562,670
1,000 Pennsylvania Hsg Fin Agy Single Family Mtg Ser
43............................................... 7.500 10/01/25 1,026,060
1,600 Pennsylvania St Higher Edl Fac Auth Rev Med
College PA
Ser A............................................ 7.250 03/01/11 1,662,064
7,500 Philadelphia, PA Gas Wks Rev Ser 14 (FSA Insd)... 6.250 07/01/08 7,969,500
2,000 Philadelphia, PA Hosp & Higher Edl Fac Auth Hosp
Rev Friends Hosp................................. 6.200 05/01/11 1,941,180
1,315 State Pub Sch Bldg Auth PA Sch Rev Burgettstown
Sch Dist Ser D (MBIA Insd)....................... 6.450 02/01/10 1,404,959
------------
20,679,078
------------
SOUTH CAROLINA 0.7%
2,000 Spartanburg Cnty, SC Hlth Services Dist Inc Hosp
Rev (AMBAC Insd)................................. 5.300 04/15/25 1,812,540
------------
TENNESSEE 1.0%
2,500 Tennessee Hsg Dev Agy Mtg Fin Ser A.............. 7.125 07/01/26 2,595,200
------------
TEXAS 1.9%
2,000 Harris Cnty, TX Hlth Fac Dev Corp Hosp Rev
Hermann Hosp Proj (MBIA Insd).................... 6.375 10/01/24 2,069,100
2,840 Harris Cnty, TX Toll Road Sub Lien Rev Rfdg...... 6.750 08/01/14 3,051,211
------------
5,120,311
------------
UTAH 1.2%
1,050 Intermountain Pwr Agy UT Pwr Supply Rev Ser B.... 7.000 07/01/21 1,115,184
2,000 Utah St Hsg Fin Agy Single Family Mtg Sr Issue
Ser B-2 (FHA Gtd)................................ 6.500 07/01/15 2,025,860
------------
3,141,044
------------
VIRGINIA 3.6%
1,250 Fredericksburg, VA Indl Dev Auth Hosp Fac Rev
(FGIC Insd)...................................... 6.600 08/15/23 1,292,837
1,500 Henrico Cnty, VA Indl Dev Auth Pub Fac Lease Rev
Henrico Cnty Regl Jail Proj...................... 6.500 08/01/10 1,585,095
</TABLE>
See Notes to Financial Statements
9
<PAGE> 11
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
----------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA (CONTINUED)
$ 2,000 Loudoun Cnty, VA Ctfs Partn (FSA Insd) (c)....... 6.900% 03/01/19 $ 2,152,840
3,680 Virginia St Hsg Dev Auth Comwlth Mtg Ser C....... 6.250 07/01/11 3,737,776
1,000 Virginia St Hsg Dev Auth Multi Family Ser E
Rfdg............................................. 5.900 11/01/17 978,560
------------
9,747,108
------------
WASHINGTON 0.4%
2,500 Washington St Pub Pwr Supply Sys Nuclear Proj No
3 Rev Ser B Rfdg................................. * 07/01/10 1,035,250
------------
WEST VIRGINIA 2.4%
735 Harrison Cnty, WV Cnty Cmnty Solid Waste Disp Rev
West PA Pwr Co Ser C (AMBAC Insd)................ 6.750 08/01/24 775,226
3,000 Marshall Cnty, WV Pollutn Ctl Rev OH Pwr Co Proj
Ser C Rfdg (MBIA Insd)........................... 6.850 06/01/22 3,231,420
2,215 West Virginia St Wtr Dev Auth Wtr Dev Rev Ln Prog
II Ser A (Prerefunded @ 11/01/04) (FSA Insd)..... 6.750 11/01/33 2,519,031
------------
6,525,677
------------
WISCONSIN 1.0%
2,490 Wisconsin St Hlth & Edl Fac Auth Rev Bellin Mem
Hosp Inc (AMBAC Insd)............................ 6.625 02/15/08 2,786,758
------------
PUERTO RICO 3.1%
8,000 Puerto Rico Comwlth Hwy & Tran Ser Y (Embedded
Cap) (FSA Insd).................................. 5.730 07/01/21 8,458,080
------------
TOTAL LONG-TERM INVESTMENTS 99.6%
(Cost $264,466,214) (a)...................................................... 270,058,839
OTHER ASSETS IN EXCESS OF LIABILITIES 0.4%.................................... 1,029,824
------------
NET ASSETS 100%............................................................... $271,088,663
============
</TABLE>
*Zero coupon bond
(a) At April 30, 1996, cost for federal income tax purposes is $264,466,214; the
aggregate gross unrealized appreciation is $8,092,626 and the aggregate
gross unrealized depreciation is $2,400,715, resulting in net unrealized
appreciation including open option and futures transactions of $5,691,911.
(b) Securities purchased on a when issued or delayed delivery basis.
(c) Assets segregated as collateral for when issued or delayed delivery purchase
commitments and open option and futures transactions.
See Notes to Financial Statements
10
<PAGE> 12
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments, at Market Value (Cost $264,466,214) (Note 1).............. $270,058,839
Receivables:
Interest............................................................. 4,654,084
Margin on Futures (Note 4)........................................... 45,000
Options at Market Value (Net premiums paid of $117,168) (Note 4)....... 162,563
Unamortized Organizational Expenses (Note 1)........................... 17,181
Other.................................................................. 7,713
------------
Total Assets..................................................... 274,945,380
============
LIABILITIES:
Payables:
Investments Purchased................................................ 2,913,161
Custodian Bank....................................................... 491,613
Investment Advisory Fee (Note 2)..................................... 144,663
Income Distributions--Common and Preferred Shares.................... 96,858
Administrative Fee (Note 2).......................................... 44,512
Accrued Expenses....................................................... 127,843
Deferred Compensation and Retirement Plans (Note 2).................... 38,067
------------
Total Liabilities................................................ 3,856,717
------------
NET ASSETS............................................................. $271,088,663
============
NET ASSETS CONSIST OF:
Preferred Shares ($.01 par value, authorized 100,000,000 shares, 2,300
issued with liquidation preference of $50,000 per share) (Note 5).... $115,000,000
------------
Common Shares ($.01 par value with an unlimited number of shares
authorized, 11,681,272 shares issued and outstanding)................ 116,813
Paid in Surplus........................................................ 172,387,137
Net Unrealized Appreciation on Investments............................. 5,691,911
Accumulated Undistributed Net Investment Income........................ 506,957
Accumulated Net Realized Loss on Investments........................... (22,614,155)
------------
Net Assets Applicable to Common Shares........................... 156,088,663
------------
NET ASSETS............................................................. $271,088,663
============
NET ASSET VALUE PER COMMON SHARE ($156,088,663 divided
by 11,681,272 shares outstanding).................................... $ 13.36
============
</TABLE>
See Notes to Financial Statements
11
<PAGE> 13
STATEMENT OF OPERATIONS
For the Six Months Ended April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest................................................................. $ 8,160,155
EXPENSES:
Investment Advisory Fee (Note 2)......................................... 897,383
Administrative Fee (Note 2).............................................. 276,118
Preferred Share Maintenance (Note 5)..................................... 179,922
Legal (Note 2)........................................................... 13,650
Trustees Fees and Expenses (Note 2)...................................... 11,361
Amortization of Organizational Expenses (Note 1)......................... 3,989
Other.................................................................... 133,489
-----------
Total Expenses....................................................... 1,515,912
-----------
NET INVESTMENT INCOME.................................................... $ 6,644,243
===========
REALIZED AND UNREALIZED GAIN/LOSS ON INVESTMENTS:
Realized Gain/Loss on Investments:
Proceeds from Sales.................................................... $71,695,768
Cost of Securities Sold................................................ (71,341,260)
-----------
Net Realized Gain on Investments (Including realized gain on closed
option transactions of $95,863 and realized loss on futures
transactions of $376,989).............................................. 354,508
-----------
Unrealized Appreciation/Depreciation on Investments:
Beginning of the Period................................................ 10,371,085
End of the Period (Including unrealized appreciation on open option and
futures transactions of $45,395 and $53,891, respectively)........... 5,691,911
-----------
Net Unrealized Depreciation on Investments During the Period............. (4,679,174)
-----------
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS.......................... $(4,324,666)
===========
NET INCREASE IN NET ASSETS FROM OPERATIONS............................... $ 2,319,577
===========
</TABLE>
See Notes to Financial Statements
12
<PAGE> 14
STATEMENT OF CHANGES IN NET ASSETS
For the Six Months Ended April 30, 1996
and the Year Ended October 31, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended Year Ended
April 30, 1996 October 31, 1995
- -------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income................................ $ 6,644,243 $ 13,414,549
Net Realized Gain/Loss on Investments................ 354,508 (13,922,645)
Net Unrealized Appreciation/Depreciation on
Investments
During the Period.................................. (4,679,174) 32,007,862
---------- ----------
Change in Net Assets from Operations................. 2,319,577 31,499,766
---------- ----------
Distributions from Net Investment Income:
Common Shares...................................... (4,380,421) (9,286,504)
Preferred Shares................................... (2,082,677) (4,504,794)
---------- ----------
Total Distributions.................................. (6,463,098) (13,791,298)
---------- ----------
NET CHANGE IN NET ASSETS FROM INVESTMENT
ACTIVITIES......................................... (4,143,521) 17,708,468
NET ASSETS:
Beginning of the Period.............................. 275,232,184 257,523,716
---------- ----------
End of the Period (Including undistributed net
investment income of $506,957 and $325,812,
respectively)...................................... $271,088,663 $275,232,184
============ ============
</TABLE>
See Notes to Financial Statements
13
<PAGE> 15
FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for one common share of
the Trust outstanding throughout the periods indicated. (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
June 25, 1993
Six Months Year Year (Commencement
Ended Ended Ended of Investment
April 30, October 31, October 31, Operations) to
1996 1995 1994 October 31, 1993
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value,
Beginning of the Period (a)..... $13.717 $12.201 $15.584 $14.766
------- ------ ------ ------
Net Investment Income........... .568 1.149 1.108 .312
Net Realized and Unrealized
Gain/Loss on Investments...... (.370) 1.548 (3.276) .710
------- ------ ------ ------
Total from Investment
Operations...................... .198 2.697 (2.168) 1.022
------- ------ ------ ------
Less:
Distributions from Net
Investment Income:
Paid to Common Shareholders... .375 .795 .900 .150
Common Share Equivalent of
Distributions Paid to
Preferred Shareholders...... .178 .386 .256 .054
Distributions from Net Realized
Gain on Investments (Note 1):
Paid to Common Shareholders... -0- -0- .049 -0-
Common Share Equivalent of
Distributions Paid to
Preferred Shareholders...... -0- -0- .010 -0-
------ ------ ------ ------
Total Distributions............... .553 1.181 1.215 .204
------ ------ ------ ------
Net Asset Value, End of the
Period.......................... $13.362 $13.717 $12.201 $15.584
======= ======= ======= =======
Market Price Per Share at End of
the
Period.......................... $11.250 $11.375 $10.500 $15.000
Total Investment Return at Market
Price (b)....................... 2.10%* 16.07% (24.59%) 1.01%*
Total Return at Net Asset Value
(c)............................. .03%* 19.54% (16.14%) 4.87%*
Net Assets at End of the Period
(In millions)................... $271.1 $275.2 $257.5 $297.0
Ratio of Expenses to Average Net
Assets Applicable to Common
Shares.......................... 1.86% 1.94% 1.82% 1.59%
Ratio of Expenses to Average Net
Assets.......................... 1.09% 1.10% 1.06% 1.11%
Ratio of Net Investment Income to
Average Net Assets Applicable to
Common Shares (d)............... 5.61% 5.88% 6.11% 4.76%
Portfolio Turnover................ 25.10%* 57.52% 115.07% 54.51%*
</TABLE>
(a) Net asset value at June 25, 1993, is adjusted for common and preferred share
offering costs of $.234 per common share.
(b) Total investment return at market price reflects the change in market value
of the common shares for the period indicated with reinvestment of dividends
in accordance with the Trust's dividend reinvestment plan.
(c) Total return at net asset value (NAV) reflects the change in value of the
Trust's assets with reinvestment of dividends based upon NAV.
(d) Net investment income is adjusted for the common share equivalent of
distributions paid to preferred shareholders.
* Non-Annualized
See Notes to Financial Statements
14
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen American Capital Municipal Opportunity Trust II (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 intends to invest
substantially all of its assets in municipal securities rated investment grade
at the time of investment. The Trust commenced investment operations on June 25,
1993.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
A. SECURITY VALUATION--Investments are stated at value using market quotations
or, if such valuations are not available, estimates obtained from yield data
relating to instruments or securities with similar characteristics in accordance
with procedures established in good faith by the Board of Trustees. Short-term
securities with remaining maturities of 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.
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 (collectively "VKAC") for costs incurred in
15
<PAGE> 17
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
connection with the Trust's organization in the amount of $40,000. These costs
are being amortized on a straight line basis over the 60 month period ending
June 24, 1998. 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.
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, 1995, the Trust had an accumulated capital loss
carryforward for tax purposes of $22,968,663, of which $9,046,018 and
$13,922,645 will expire on October 31, 2002 and 2003, respectively.
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.
16
<PAGE> 18
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
For the six months ended April 30, 1996, the Trust recognized expenses of
approximately $11,900 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.
At April 30, 1996, 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, 1996, were $68,453,995 and
$68,327,367, 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.
Summarized below are the specific types of derivative financial instruments
used by the Trust.
A. OPTION CONTRACTS--An option contract gives the buyer the right, but not the
obligation to buy (call) or sell (put) an underlying item at a fixed exercise
price during a specified period. These contracts are generally used by the Trust
to manage the portfolio's effective maturity and duration.
17
<PAGE> 19
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Transactions in options for the six months ended April 30, 1996 were as
follows:
<TABLE>
<CAPTION>
CONTRACTS PREMIUM
<S> <C> <C>
- -------------------------------------------------------------------------
Outstanding at October 31, 1995.................. -0- $ -0-
Options Written and Purchased (Net).............. 552 (398,924)
Options Terminated in Closing Transactions
(Net).......................................... (450) 281,756
--- ---------
Outstanding at April 30, 1996.................... 102 $(117,168)
=== =========
</TABLE>
The related futures contracts of the outstanding option transaction as of
April 30, 1996, and the description and market value is as follows:
<TABLE>
<CAPTION>
EXPIRATION
MONTH/
EXERCISE MARKET VALUE
CONTRACTS PRICE OF OPTION
<S> <C> <C> <C>
- -----------------------------------------------------------------------------
U.S. Treasury Bond Futures
June 1996--Purchased Puts.......... 102 Jun/110 $162,563
=== ========
</TABLE>
B. FUTURES CONTRACTS--A futures contract is an agreement involving the delivery
of a particular asset on a specified future date at an agreed upon price. The
Trust generally invests in futures on U.S. Treasury Bonds and the Municipal Bond
Index and typically closes the contract prior to the delivery date. These
contracts are generally used to manage the portfolio's effective maturity and
duration.
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, 1996,
were as follows:
<TABLE>
<CAPTION>
CONTRACTS
<S> <C>
- ----------------------------------------------------------------------
Outstanding at October 31, 1995............................ 90
Futures Opened............................................. 150
Futures Closed............................................. (180)
----
Outstanding at April 30, 1996.............................. 60
====
</TABLE>
18
<PAGE> 20
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
The futures contracts outstanding as of April 30, 1996, and the description
and unrealized appreciation is as follows:
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS APPRECIATION
<S> <C> <C>
- --------------------------------------------------------------------------
Municipal Bond Index Futures
June 1996--Sells to Open...................... 60 $53,891
-- -------
</TABLE>
C. INDEXED SECURITIES--These instruments are identified in the portfolio of
investments. The price of these securities may be more volatile than the price
of a comparable fixed rate security.
An Embedded Cap security includes a cap strike level such that the coupon
payment may be supplemented by cap payments if the floating rate index upon
which the cap is based rises above the strike level. The Trust invests in these
instruments as a hedge against a rise in the short-term interest rates which it
pays on its preferred shares.
An Embedded Swap security includes a swap component such that the fixed
coupon component of the underlying bond is adjusted by the difference between
the 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 2,300 Auction Preferred Shares ("APS") in three
series. Series A and B each contain 800 shares while Series C contains 700
shares. Dividends are cumulative and the dividend rates are currently reset
every seven days through an auction process. The average rate in effect on April
30, 1996 was 3.869%. During the six months ended April 30, 1996, the rates
ranged from 3.00% 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.
19
<PAGE> 21
FUNDS DISTRIBUTED BY VAN KAMPEN AMERICAN CAPITAL
GLOBAL AND
INTERNATIONAL
Global Equity Fund
Global Government Securities Fund
Global Managed Assets Fund
Short-Term Global Income Fund
Strategic Income Fund
EQUITY
Growth
Aggressive Growth Fund
Emerging Growth Fund
Enterprise Fund
Pace Fund
Growth & Income
Balanced Fund
Comstock Fund
Equity Income Fund
Growth and Income Fund
Harbor Fund
Real Estate Securities Fund
Utility Fund
FIXED INCOME
Corporate Bond Fund
Government Securities Fund
High Income Corporate Bond Fund
High Yield Fund
Limited Maturity Government Fund
Prime Rate Income Trust
Reserve Fund
U.S. Government Fund
U.S. Government Trust for Income
TAX-FREE
California Insured Tax Free Fund
Florida Insured Tax Free
Income Fund
High Yield Municipal Fund
Insured Tax Free Income Fund
Intermediate Term Municipal
Income Fund
Municipal Income Fund
New Jersey Tax Free Income Fund
New York Tax Free Income Fund
Pennsylvania Tax Free Income Fund
Tax Free High Income Fund
Tax Free Money Fund
Texas Tax Free Income Fund
THE GOVETT FUNDS
Emerging Markets Fund
Global Income Fund
International Equity Fund
Latin America Fund
Pacific Strategy Fund
Smaller Companies Fund
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 1-800-341-2911 weekdays
from 7:00 a.m. to 7:00 p.m. Central time.
20
<PAGE> 22
VAN KAMPEN AMERICAN CAPITAL MUNICIPAL OPPORTUNITY TRUST II
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., 1996
All rights reserved.
(SM) denotes a service mark of Van Kampen American Capital Distributors, Inc.
21
