UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT
COMPANIES
Investment Company Act file number 811-6535
Van Kampen Trust for Investment Grade California Municipals
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
1221 Avenue of the Americas NY NY 10020
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Ronald Robison
1221 Avenue of the Americas
New York, NY 10020
- --------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: 212-762-4000
-----------------------------
Date of fiscal year end: 10/31/03
-----------
Date of reporting period: 04/30/03
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Item 1. Report to Shareholders
PERFORMANCE SUMMARY
RETURN HIGHLIGHTS
(as of April 30, 2003)
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NYSE Ticker Symbol - VIC
- -------------------------------
<Table>
<Caption>
- -----------------------------------------------------------------------
Six-month total return(1) 4.04%
- -----------------------------------------------------------------------
One-year total return(1) 14.80%
- -----------------------------------------------------------------------
Five-year average annual total return(1) 6.25%
- -----------------------------------------------------------------------
Ten-year average annual total return(1) 7.68%
- -----------------------------------------------------------------------
Life-of-Trust average annual total return(1) 7.93%
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Commencement date 03/27/92
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Distribution rate as a % of closing common share market
price(2) 6.93%
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Taxable-equivalent distribution rate as a % of closing
common share market price(3) 12.44%
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Preferred share rate(4) 0.950%
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Net asset value $16.58
- -----------------------------------------------------------------------
Closing common share market price $16.20
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Six-month high common share market price (03/10/03) $16.58
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Six-month low common share market price (12/20/02) $15.56
- -----------------------------------------------------------------------
</Table>
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
1
(1) Total return assumes an investment at the common share 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 share market price at the end of the
period indicated.
(2) Distribution rate represents the monthly annualized distributions of the
Trust at the end of the period and not the earnings of the Trust.
(3) The taxable-equivalent distribution rate is calculated assuming the maximum
44.3% combined federal and state tax bracket effective for calendar year
2003, which takes into consideration the deductibility of individual state
taxes paid.
(4) 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,
common share market price and net asset value will fluctuate and Trust
shares, when sold, may be worth more or less than their original cost. An
investment in the Trust is subject to investment risks, and you could lose
money on your investment in the Trust. As a result of recent market
activity, current performance may vary from the figures shown. For more
up-to-date information, please visit vankampen.com or speak with your
financial advisor.
2
PORTFOLIO AT A GLANCE
CREDIT QUALITY
(as a percentage of long-term investments)
<Table>
<Caption>
As of April 30, 2003
AAA/Aaa........................... 78.6%
AA/Aa............................. 5.6%
A/A............................... 6.7%
BBB/Baa........................... 9.1%
</Table>
TOP FIVE SECTORS
(as a percentage of long-term investments)
<Table>
<Caption>
As of April 30, 2003
Public Education.................. 20.3%
Tax District...................... 12.8%
Industrial Revenue................ 10.6%
Transportation.................... 10.4%
Public Building................... 8.7%
</Table>
Based upon the credit quality ratings as issued by Standard & Poor's Credit
Market Services/Moody's Investor Services, respectively. Subject to change
daily.
NET ASSET VALUE AND COMMON SHARE MARKET PRICE
(based upon quarter-end values--April 1993 through April 2003)
[LINE GRAPH]
<Table>
<Caption>
NET ASSET VALUE COMMON SHARE MARKET PRICE
--------------- -------------------------
4/93 $16.6200 $15.6250
6/93 $16.9200 $15.6250
$17.7000 $16.0000
$17.5100 $15.6250
$15.6500 $13.6250
6/94 $15.4400 $14.0000
$15.2100 $13.7500
$14.2400 $12.6250
$15.5800 $13.8750
6/95 $15.8000 $14.2500
$16.0500 $13.8750
$16.8000 $15.6250
$16.0400 $14.8750
6/96 $16.0900 $15.7500
$16.4300 $15.2500
$16.5300 $15.8750
$16.2300 $15.5000
6/97 $16.6900 $16.3750
$17.0900 $16.8120
$17.2400 $17.0625
$17.1900 $17.3125
6/98 $17.2100 $16.8125
$17.6700 $18.0000
$17.1000 $18.1875
$16.9700 $17.8125
6/99 $16.2500 $16.1875
$15.6400 $16.0625
$14.9100 $14.2500
$15.3900 $14.7500
6/00 $15.3800 $15.5000
$15.7700 $16.4375
$16.4500 $16.3750
$16.3900 $16.1300
6/01 $16.0500 $15.1500
$16.6600 $15.4800
$15.9000 $15.4900
$15.6500 $15.3800
6/02 $16.1500 $15.8100
$17.2000 $17.0000
$16.5000 $15.8000
$16.4200 $16.0400
4/03 $16.5800 $16.2000
</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 common share 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. Common share market price is influenced by a range of factors,
including supply and demand and market conditions.
3
Q&A WITH YOUR PORTFOLIO MANAGERS
WE RECENTLY SPOKE WITH THE MANAGEMENT TEAM OF THE VAN KAMPEN TRUST FOR
INVESTMENT GRADE CALIFORNIA MUNICIPALS ABOUT THE KEY EVENTS AND ECONOMIC FORCES
THAT SHAPED THE MARKETS AND INFLUENCED THE TRUST'S RETURN DURING THE SIX MONTHS
ENDED APRIL 30, 2003. JOSEPH PIRARO, PORTFOLIO MANAGER, HAS MANAGED THE TRUST
SINCE 1992 AND HAS WORKED IN THE INVESTMENT INDUSTRY SINCE 1971. THE FOLLOWING
DISCUSSION REFLECTS HIS VIEWS ON THE TRUST'S PERFORMANCE.
Q WHAT WAS THE MARKET
ENVIRONMENT OF THE PAST SIX MONTHS, AND HOW DID THE TRUST PERFORM IN THAT
ENVIRONMENT?
A The environment over the past six
months has been defined by two major themes. The first of these was the level of
interest rates. The period began with interest rates at levels not seen in over
three decades and, surprisingly for many, ended with rates slightly lower. The
Federal Reserve Board (the Fed) helped keep rates low with a widely anticipated
rate cut in November, driven by economic uncertainty and geopolitical risk. The
low level of rates led to a boom in issuance by municipalities seeking to lock
in low financing costs. As a result, issuance reached a record level of $354
billion in 2002 and continued to be exceptional in the first quarter of 2003.
The other theme in the market during the period was the relative
attractiveness of municipal bonds, which produced enough demand to absorb the
record issuance. Investors, wary of volatility in the equity market and in the
geopolitical arena, flocked to perceived safe haven investments. Their risk
aversion counteracted growing expectations for economic recovery and rising
interest rates and was a key factor in keeping interest rates at historically
low levels. In their ongoing preference for low-risk assets, investors bid
Treasury prices up to such high levels that municipal bonds became as
attractively valued as they have ever been relative to Treasuries. Insurance
companies also moved heavily into municipal bonds as their mainstay corporate
bond holdings became less attractive. At the same time, issuers recognized
investor concerns over economic weakness by insuring roughly 50 percent of all
issuance. This credit enhancement made municipal bonds even more attractive to
risk averse investors.
While lower financing costs were a boon to municipal issuers, the continuing
weakness in the economy had a negative impact on municipal credit quality,
particularly in the first quarter of 2003. Moody's upgrades barely exceeded the
number of downgrades in the first quarter, with
4
credit quality facing continued pressure from rising social service costs and
weak national and regional economic conditions. As a result, municipalities face
enormous deficits in 2003, when their combined shortfall is expected to reach
$90 billion.
Performance along the yield curve was varied. The Fed's November rate cut
fueled a rally in short-term bonds that helped pull yields lower at the front
end of the curve. Despite that rally, the best performing segment of the curve
was the long-intermediate portion where performance was largely driven by buying
activity among institutional investors drawn to the bonds' attractive total
return potential.
California's economic and credit conditions deteriorated during the period.
The state's $3.5 billion budget shortfall for fiscal 2003 is projected to grow
to $34 billion (by far the largest of any state) in 2004 and potentially grow
further in 2005. Governor Gray Davis has proposed measures intended to balance
the budget by cutting services and raising taxes selectively, but it is too
early to tell whether they will be successful. The state's unemployment level
continued to be higher than the average, with personal income growth also
lagging the rest of the country. California's fiscal condition was not helped by
the unexpected loss of future tobacco revenues.
The trust's monthly dividend of $0.0935 per share translated to a
distribution rate of 6.93 percent based on the trust's closing common share
market price on April 30, 2003. Based on these figures, investors would have to
earn a distribution rate of 12.44 percent on a taxable investment (for an
investor in the 44.30 percent combined federal and state income tax bracket) to
match the tax-exempt yield provided by the trust.
For the six months ended April 30, 2003, the trust produced a total return
of 4.04 percent based on common share market price. By comparison, the Lehman
Brothers California Municipal Bond Index posted a total return of 3.39 percent
for the same period. Of course, past performance is no guarantee of future
results. Investment return, common share market price and net asset value will
fluctuate and trust shares, when sold, may be worth more or less than their
original cost. As a result of recent market activity, current performance may
vary from the figures shown. For more up-to-date information, please visit
vankampen.com or speak with your financial advisor.
The Lehman Brothers California Municipal Bond Index is an unmanaged,
broad-based statistical composite of municipal bonds. Index returns do not
include any sales charges or fees that would be paid by an investor purchasing
the securities the index represents. Such costs would lower performance. It is
not possible to invest directly in an index. For additional information, please
refer to the performance summary section.
Q WHAT STRATEGIES DID YOU PURSUE
IN MANAGING THE TRUST?
A With interest rates hovering near
record lows, we focused on protecting the portfolio from the potential adverse
effects of rising interest rates while maintaining the trust's yield. One of
5
the main ways we did this was to adjust the trust's maturity profile by shifting
assets from the short end of the yield curve to securities with maturities
between 18 and 22 years and a shorter call date. Our quantitative analysis
showed that this segment of the yield curve offered the optimal combination of
total return potential as well as downside protection in the form of a
comfortable yield cushion and an intermediate maturity profile. We also kept the
trust's duration (a broad measure of interest rate exposure) lower than that of
its benchmark index in order to help limit the potential for damage in the event
of rising interest rates.
Our concern about the state's economic welfare also led us to keep the
portfolio's overall credit quality very high. By the end of the period, nearly
79 percent of the trust's holdings were AAA insured bonds, with another 5
percent in AA rated bonds. With so much of the trust invested in high-quality
securities, we felt it was prudent to hold some carefully screened BBB holdings
in order to maintain the portfolio's dividend yield. As a result, we invested
roughly 9 percent of the portfolio in bonds rated BBB.
The portfolio remained well diversified across all major sectors of the
municipal bond market during the period, with the exception of tobacco bonds.
These bonds were issued by states seeking to securitize their future income
streams resulting from settlements from class action suits against the major
tobacco companies. Recent litigation in Illinois resulted in a judge awarding
billions more in a suit alleging that the companies misled smokers about the
amount of nicotine in "light" cigarettes. In order to appeal, the law required
the companies to put up such substantial amounts of money that some began
talking about potential bankruptcy, and the tobacco bonds' credit ratings and
price performance suffered accordingly. Our decision not to invest in these
securities was a benefit to shareholders during the period.
6
BY THE NUMBERS
YOUR TRUST'S INVESTMENTS
April 30, 2003 (Unaudited)
THE FOLLOWING PAGES DETAIL YOUR TRUST'S PORTFOLIO OF INVESTMENTS AT THE END OF
THE REPORTING PERIOD.
<Table>
<Caption>
PAR
AMOUNT MARKET
(000) DESCRIPTION COUPON MATURITY VALUE
MUNICIPAL BONDS 154.1%
CALIFORNIA 152.6%
$ 1,020 A B C CA Uni Sch Dist Cap Apprec Ser B
(FGIC Insd)............................... * 08/01/17 $ 529,370
1,000 Abag Fin Auth For Nonprofit Corp CA
Multi-Family Rev Hsg Utd Dominion Ser A
Rfdg (Asset Gty Insd)..................... 6.400% 08/15/30 1,068,610
3,540 Anaheim, CA Pub Fin Auth Lease Rev Cap
Apprec Pub Impt Proj Ser C (FSA Insd)..... * 09/01/32 749,630
2,000 Bay Area Toll Auth CA Toll Brdg Rev San
Francisco Bay Area Ser D.................. 5.000 04/01/17 2,139,460
3,535 Brea, CA Redev Agy Tax Alloc Ser A Rfdg
(AMBAC Insd) (a).......................... 5.500 08/01/20 3,902,286
1,000 California Edl Facs Auth Rev Pooled
College & Univ Proj Ser B................. 5.250 04/01/24 991,810
1,000 California Edl Facs Auth Rev Pooled
College & Univ Proj Ser B................. 6.750 06/01/30 1,092,820
835 California Edl Facs Auth Rev Student Ln CA
Ln Pgm Ser A (MBIA Insd).................. 6.000 03/01/16 901,925
755 California Hlth Fac Fin Auth Rev Hlth Fac
Small Fac Ln Ser A (CA MTG Insd).......... 6.700 03/01/11 764,090
1,035 California Hlth Fac Fin Auth Rev Hlth Fac
Small Fac Ln Ser A (CA MTG Insd).......... 6.750 03/01/20 1,049,055
2,500 California Hlth Fac Fin Auth Rev Insd Hlth
Fac Vlycare Ser A (CA MTG Insd)........... 6.125 05/01/12 2,528,775
1,000 California Hlth Fac Fin Auth Rev Kaiser
Permanente Ser A (FSA Insd)............... 5.550 08/15/25 1,008,220
1,000 California Hsg Fin Agy Rev AMT
Multi-Family Hsg III Ser A (MBIA Insd).... 5.850 08/01/17 1,049,590
1,000 California Hsg Fin Agy Rev Cap Apprec Home
Mtg Ser K (MBIA Insd)..................... * 08/01/24 286,850
1,000 California Hsg Fin Agy Rev Home Mtg Ser B
(MBIA Insd)............................... 6.000 08/01/16 1,056,710
260 California Hsg Fin Agy Rev Home Mtg Ser E
(AMBAC Insd).............................. 6.100 08/01/29 273,208
1,000 California Hsg Fin Agy Rev Home Mtg Ser M
(MBIA Insd)............................... 5.550 08/01/17 1,048,650
4,500 California Pollutn Ctl Fin Auth Pollutn
Ctl Rev Southn CA Edison Co (AMBAC Insd)
(a)....................................... 6.000 07/01/27 4,604,265
</Table>
See Notes to Financial Statements
7
YOUR TRUST'S INVESTMENTS
April 30, 2003 (Unaudited)
<Table>
<Caption>
PAR
AMOUNT MARKET
(000) DESCRIPTION COUPON MATURITY VALUE
CALIFORNIA (CONTINUED)
$ 2,110 California Spl Dists Fin Prog Ser 00 (MBIA
Insd)..................................... 5.250% 12/01/26 $ 2,221,345
1,000 California St AMT Veterans Bonds Ser BH
(FSA Insd)................................ 5.400 12/01/15 1,060,420
2,000 California St AMT Veterans Bonds Ser BH
(FSA Insd)................................ 5.400 12/01/16 2,112,960
1,000 California St CIFG-TCRS (CIFG Insd)....... 5.000 10/01/22 1,043,860
1,000 California St Dept Wtr Res Pwr Ser A
(AMBAC Insd).............................. 5.500 05/01/15 1,132,850
2,000 California St Dept Wtr Res Pwr Ser A
(AMBAC Insd).............................. 5.500 05/01/16 2,259,180
1,000 California St Dept Wtr Res Wtr Ser W...... 5.500 12/01/17 1,119,240
1,475 California St Pub Wks Brd Lease Rev Dept
of Corrections Ser B Rfdg................. 5.250 01/01/13 1,618,458
1,000 California St Univ Fresno Assn Sr Aux
Organization Event Ctr.................... 6.000 07/01/26 1,036,580
1,085 Cathedral City, CA Pub Fin Auth Rev Cap
Apprec Ser A (MBIA Insd).................. * 08/01/30 258,382
1,085 Cathedral City, CA Pub Fin Auth Rev Cap
Apprec Ser A (MBIA Insd).................. * 08/01/31 245,264
1,000 Chaffey, CA Uni High Sch Dist Ser C (FSA
Insd)..................................... 5.000 05/01/27 1,033,000
1,700 Chino Vly Uni Sch Dist CA Ctfs Partn Ser A
Rfdg (FSA Insd)........................... 5.375 09/01/20 1,854,139
1,700 Chula Vista, CA Indl Dev Rev San Diego Gas
& Elec Co Ser A (AMBAC Insd).............. 6.400 12/01/27 1,740,018
2,900 Colton, CA Jt Uni Sch Dist Ser A (FGIC
Insd)..................................... 5.500 08/01/22 3,217,579
1,000 Colton, CA Redev Agy Tax Alloc Mount
Vernon Corridor Redev..................... 6.300 09/01/36 1,068,330
1,360 Csuci Fing Auth Rev CA East Campus Cmnty
Ser A (MBIA Insd)......................... 5.125 09/01/21 1,441,246
1,245 Duarte, CA Multi-Family Rev Hsg Heritage
Park Apts Ser A (FNMA Collateralized)..... 5.850 05/01/30 1,304,872
1,000 Fairfield Suisun, CA Uni Sch Dist Spl Tax
Cmnty Fac Dist No 5 New Sch (FSA Insd).... 5.375 08/15/29 1,070,680
1,000 Folsom, CA Spl Tax Cmnty Fac Dist No 2
Rfdg (Connie Lee Insd).................... 5.250 12/01/19 1,085,380
1,950 Fontana, CA Redev Agy Tax Alloc Southwest
Indl Park Proj (MBIA Insd)................ 5.200 09/01/30 2,016,476
10,000 Foothill/Eastern Corridor Agy CA Toll Rd
Rev Cap Apprec Rfdg (a)................... * 01/15/25 2,843,500
</Table>
See Notes to Financial Statements
8
YOUR TRUST'S INVESTMENTS
April 30, 2003 (Unaudited)
<Table>
<Caption>
PAR
AMOUNT MARKET
(000) DESCRIPTION COUPON MATURITY VALUE
CALIFORNIA (CONTINUED)
$ 3,000 Foothill/Eastern Corridor Agy CA Toll Rd
Rev Conv Cap Apprec Sr Lien Ser A
(Escrowed to Maturity) (b)................ 0/7.050% 01/01/10 $ 3,366,510
1,680 Glendale, CA Uni Sch Dist Ser D (MBIA
Insd)..................................... 5.250 09/01/17 1,840,625
1,000 Industry, CA Urban Dev Agy Tax Alloc Civic
Rec Indl-1 Rfdg (MBIA Insd)............... 5.500 05/01/14 1,123,550
1,000 Kern, CA Cmnty College Sch Fac Impt Dist
Mammoth Campus/Kern Cmnty (AMBAC Insd).... * 08/01/22 381,030
1,000 Laguna Hills, CA Ctfs Partn Cmnty Ctr Proj
(MBIA Insd)............................... 5.000 12/01/18 1,067,160
1,105 Larkspur, CA Sch Dist Cap Apprec Ser A
(FGIC Insd)............................... * 08/01/20 475,714
1,000 Loma Linda, CA Redev Agy Tax Loma Linda
Redev Proj Rfdg (MBIA Insd) (c)........... 5.125 07/01/30 1,042,290
1,000 Los Angeles Cnty, CA Met Tran Auth Sales
Tax Rev Prop A Second Tier Sr Ser A Rfdg
(AMBAC Insd).............................. 5.000 07/01/25 1,009,030
1,000 Los Angeles, CA Cmnty College Dist Ser A
(MBIA Insd)............................... 5.000 06/01/26 1,028,870
1,000 Los Angeles, CA Ctf Part Sr Sonnenblick
Del Rio W L. A. (AMBAC Insd).............. 6.000 11/01/19 1,167,170
260 Los Angeles, CA Dept Wtr & Pwr Elec Plt
Rev....................................... 6.000 02/15/30 279,898
1,473 Los Angeles, CA Multi-Family Rev Hsg
Earthquake Rehab Proj Ser A (FNMA
Collateralized)........................... 5.700 12/01/27 1,610,223
1,000 Los Angeles, CA Wtr & Pwr Rev Ser A....... 5.250 07/01/18 1,070,980
1,000 Los Gatos, CA Jt Uni High Sch Election of
1998 Ser C (FSA Insd)..................... 5.000 06/01/27 1,033,010
1,000 Mendocino Cnty, CA Ctf Part Cnty Pub Fac
Corp (MBIA Insd).......................... 5.250 06/01/30 1,052,110
1,000 Metropolitan Wtr Dist Southrn CA Wtrwks
Rev Ser A Rfdg (MBIA Insd)................ 4.750 07/01/22 1,020,340
1,000 Oakland, CA Redev Agy Sub Tax Alloc Cent
Dist Redev (FGIC Insd).................... 5.500 09/01/18 1,127,440
1,000 Oakland, CA Uni Sch Dist Alameda Cnty (FSA
Insd)..................................... 5.000 08/01/17 1,054,500
1,000 Oxnard, CA Uni High Sch Dist Ser A Rfdg
(MBIA Insd)............................... 6.200 08/01/30 1,168,840
1,500 Placentia-Yorba Linda CA Un Ser A (FGIC
Insd)..................................... 5.000 08/01/26 1,547,550
3,000 Port Oakland, CA Ser N Rfdg (MBIA Insd)... 5.000 11/01/22 3,088,050
</Table>
See Notes to Financial Statements
9
YOUR TRUST'S INVESTMENTS
April 30, 2003 (Unaudited)
<Table>
<Caption>
PAR
AMOUNT MARKET
(000) DESCRIPTION COUPON MATURITY VALUE
CALIFORNIA (CONTINUED)
$ 1,220 Rancho Mirage, CA Redev Agy Tax Redev Plan
1984 Proj Ser A 1 (MBIA Insd)............. 5.000% 04/01/26 $ 1,254,880
1,000 Redlands, CA Redev Agy Tax Alloc Redev
Proj Ser A Rfdg (MBIA Insd)............... 4.750 08/01/21 1,024,900
2,000 Riverside Cnty, CA Brd Edl Ctfs Partn Fin
Proj Ser A................................ 6.650 11/01/17 2,026,960
1,650 Roseville, CA Jt Uni High Sch Dist Ser B
(FGIC Insd)............................... * 06/01/20 716,150
1,000 Salinas Vy CA Solid Waste Auth Rev (AMBAC
Insd)..................................... 5.250 08/01/27 1,023,170
1,000 San Bernardino Cnty, CA Ctfs Partn Med
Cent Fin Proj (MBIA Insd)................. 5.000 08/01/28 1,014,450
4,000 San Diego, CA Indl Dev Rev San Diego Gas &
Elec Ser A (AMBAC Insd)................... 6.100 09/01/19 4,095,280
1,500 San Diego, CA Redev Agy Centre City Redev
Proj Ser A................................ 6.400 09/01/25 1,605,060
1,185 San Francisco, CA City & Cnty Arpt Commn
Intl Arpt Rev Second Ser Issue 15B (MBIA
Insd)..................................... 4.800 05/01/17 1,239,605
1,685 San Francisco, CA City & Cnty Arpt Commn
Intl Arpt Rev Spl Fac Lease Ser A (FSA
Insd)..................................... 6.125 01/01/27 1,919,771
1,000 San Francisco, CA City & Cnty Arpt Commn
Intl Arpt Second Ser 27A Rfdg (MBIA
Insd)..................................... 5.250 05/01/26 1,021,280
1,000 Sanger, CA Uni Sch Dist Rfdg (MBIA
Insd)..................................... 5.600 08/01/23 1,156,020
1,500 Santa Ana, CA Multi-Family Hsg Rev Villa
Del Sol Apts Ser B (FNMA
Collateralized)........................... 5.650 11/01/21 1,535,850
2,000 Santa Ana, CA Uni Sch Dist (MBIA Insd).... 5.375 08/01/27 2,136,260
1,000 Santa Ana, CA Uni Sch Dist Ctfs Partn Cap
Apprec Fin Proj (FSA Insd)................ * 04/01/36 174,010
2,000 South Orange Cnty, CA Pub Fin Auth Reassmt
Rev (FSA Insd)............................ 5.800 09/02/18 2,302,640
210 Southern CA Home Fin Auth Single Family
Mtg Rev Ser A (GNMA Collateralized)....... 6.750 09/01/22 211,873
1,000 Stockton, CA Hlth Fac Rev Saint Joseph Med
Cent Ser A (MBIA Insd).................... 5.625 06/01/13 1,043,850
1,300 Taft, CA City Elem Sch Dist Ser A (MBIA
Insd)..................................... * 08/01/22 495,339
2,000 University of CA Ctf Part San Diego Campus
Projs Ser A............................... 5.250 01/01/32 2,082,140
1,200 Ventura Cnty, CA Cmnty College Dist Ser A
(MBIA Insd)............................... 5.500 08/01/23 1,318,428
1,000 Vista, CA Uni Sch Dist Ser A (FSA Insd)... 5.000 08/01/23 1,044,750
</Table>
See Notes to Financial Statements
10
YOUR TRUST'S INVESTMENTS
April 30, 2003 (Unaudited)
<Table>
<Caption>
PAR
AMOUNT MARKET
(000) DESCRIPTION COUPON MATURITY VALUE
CALIFORNIA (CONTINUED)
$ 2,000 William S Hart CA Jt Sch Fin Auth Spl Tax
Rev Cmnty Fac Rfdg (FSA Insd)............. 6.500% 09/01/14 $ 2,246,460
1,000 Woodland, CA Fin Auth Lease Rev Cap Projs
Rfdg (XLCA Insd).......................... 5.000 03/01/25 1,031,980
------------
118,105,079
------------
U. S. VIRGIN ISLANDS 1.5%
1,000 Virgin Islands Pub Fin Auth Rev Gross Rcpt
Taxes Ln Nt Ser A......................... 6.375 10/01/19 1,115,930
------------
TOTAL LONG-TERM INVESTMENTS 154.1%
(Cost $111,659,936)..................................................... 119,221,009
SHORT-TERM INVESTMENT 0.8%
(Cost $600,000)......................................................... 600,000
------------
TOTAL INVESTMENTS 154.9%
(Cost $112,259,936)..................................................... 119,821,009
OTHER ASSETS IN EXCESS OF LIABILITIES 3.3%............................... 2,577,860
PREFERRED SHARES (INCLUDING ACCRUED DISTRIBUTIONS) (58.2%)............... (45,024,597)
------------
NET ASSETS APPLICABLE TO COMMON SHARES 100.0%............................ $ 77,374,272
============
</Table>
* Zero coupon bond
(a) Assets segregated as collateral for when-issued or delayed delivery purchase
commitments.
(b) Security is a "step-up" bond where the coupon increases or steps up at a
predetermined date.
(c) Securities purchased on a when-issued or delayed delivery basis.
AMBAC--AMBAC Indemnity Corp.
Asset Gty--Asset Guaranty Insurance Co.
CA MTG--California Mortgage Insurance
CIFG--CDC IXIS Financial Guaranty
Connie Lee--Connie Lee Insurance Co.
FGIC--Financial Guaranty Insurance Co.
FNMA--Federal National Mortgage Association
FSA--Financial Security Assurance Inc.
GNMA--Government National Mortgage Association
MBIA--Municipal Bond Investors Assurance Corp.
XLCA--XL Capital Assurance Inc.
See Notes to Financial Statements
11
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
April 30, 2003 (Unaudited)
<Table>
ASSETS:
Total Investments (Cost $112,259,936)....................... $119,821,009
Cash........................................................ 89,661
Receivables:
Investments Sold.......................................... 2,031,000
Interest.................................................. 1,768,113
Other....................................................... 230
------------
Total Assets............................................ 123,710,013
------------
LIABILITIES:
Payables:
Investments Purchased..................................... 1,038,940
Investment Advisory Fee................................... 59,908
Affiliates................................................ 6,151
Administrative Fee........................................ 4,992
Trustees' Deferred Compensation and Retirement Plans........ 149,620
Accrued Expenses............................................ 51,533
------------
Total Liabilities....................................... 1,311,144
Preferred Shares (including accrued distributions).......... 45,024,597
------------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $ 77,374,272
============
NET ASSET VALUE PER COMMON SHARE ($77,374,272 divided by
4,666,320 shares outstanding)............................. $ 16.58
============
NET ASSETS CONSIST OF:
Common Shares ($.01 par value with an unlimited number of
shares authorized, 4,666,320 shares issued and
outstanding).............................................. $ 46,663
Paid in Surplus............................................. 68,585,040
Net Unrealized Appreciation................................. 7,561,073
Accumulated Undistributed Net Investment Income............. 678,637
Accumulated Net Realized Gain............................... 502,859
------------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $ 77,374,272
============
PREFERRED SHARES ($.01 par value, authorized 100,000,000
shares, 1,800 issued with liquidation preference of
$25,000 per share)........................................ $ 45,000,000
============
NET ASSETS INCLUDING PREFERRED SHARES....................... $122,374,272
============
</Table>
See Notes to Financial Statements
12
Statement of Operations
For the Six Months Ended April 30, 2003 (Unaudited)
<Table>
INVESTMENT INCOME:
Interest.................................................... $3,123,938
----------
EXPENSES:
Investment Advisory Fee..................................... 360,962
Preferred Share Maintenance................................. 61,315
Administrative Fee.......................................... 30,079
Trustees' Fees and Related Expenses......................... 22,779
Legal....................................................... 8,764
Custody..................................................... 3,844
Other....................................................... 67,939
----------
Total Expenses.......................................... 555,682
----------
NET INVESTMENT INCOME....................................... $2,568,256
==========
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Gain........................................... $ 515,081
----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 6,207,133
End of the Period......................................... 7,561,073
----------
Net Unrealized Appreciation During the Period............... 1,353,940
----------
NET REALIZED AND UNREALIZED GAIN............................ $1,869,021
==========
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS..................... $ (238,267)
==========
NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM
OPERATIONS................................................ $4,199,010
==========
</Table>
See Notes to Financial Statements
13
Statements of Changes in Net Assets
(Unaudited)
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2003 OCTOBER 31, 2002
------------------------------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income.............................. $ 2,568,256 $ 5,410,342
Net Realized Gain.................................. 515,081 1,249,380
Net Unrealized Appreciation/Depreciation During the
Period........................................... 1,353,940 (1,703,665)
Distributions to Preferred Shareholders:
Net Investment Income............................ (174,668) (341,421)
Net Realized Gain................................ (63,599) (379,278)
----------- -----------
Change in Net Assets Applicable to Common Shares
from Operations.................................. 4,199,010 4,235,358
Distributions to Common Shareholders:
Net Investment Income............................ (2,598,878) (4,581,949)
Net Realized Gain................................ (1,181,079) (1,156,781)
----------- -----------
NET CHANGE IN NET ASSETS APPLICABLE TO COMMON
SHARES FROM INVESTMENT ACTIVITIES................ 419,053 (1,503,372)
NET ASSETS APPLICABLE TO COMMON SHARES:............
Beginning of the Period............................ 76,955,219 78,458,591
----------- -----------
End of the Period (Including accumulated
undistributed net investment income of $678,637
and $883,927, respectively)...................... $77,374,272 $76,955,219
=========== ===========
</Table>
See Notes to Financial Statements
14
Financial Highlights
(Unaudited)
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE
TRUST OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
<Table>
<Caption>
SIX
MONTHS
ENDED
APRIL 30, ----------------------------
2003 2002 (a) 2001 2000
----------------------------------------
NET ASSET VALUE, BEGINNING OF THE PERIOD........ $ 16.49 $ 16.81 $ 15.84 $ 15.10
------- ------- ------- -------
Net Investment Income......................... .56 1.16 1.16 1.22
Net Realized and Unrealized Gain/Loss......... .39 (.10) 1.03 .84
Common Share Equivalent of Distributions Paid
to Preferred Shareholders:
Net Investment Income....................... (.04) (.07) (.29) (.33)
Net Realized Gain........................... (.01) (.08) (.01) -0-
------- ------- ------- -------
Total from Investment Operations................ .90 .91 1.89 1.73
Distributions Paid to Common Shareholders:
Net Investment Income....................... (.56) (.98) (.92) (.99)
Net Realized Gain........................... (.25) (.25) -0- -0-
------- ------- ------- -------
NET ASSET VALUE, END OF THE PERIOD.............. $ 16.58 $ 16.49 $ 16.81 $ 15.84
======= ======= ======= =======
Common Share Market Price at End of the
Period........................................ $ 16.20 $ 16.37 $ 15.59 $16.125
Total Return (b)................................ 4.04%* 13.41% 2.45% 19.77%
Net Assets Applicable to Common Shares at End of
the Period (In millions)...................... $ 77.4 $ 77.0 $ 78.5 $ 73.8
Ratio of Expenses to Averages Net Assets
Applicable to Common Shares (c)............... 1.47% 1.56% 1.74% 1.80%
Ratio of Net Investment Income to Average Net
Assets Applicable to Common Shares (c)........ 6.79% 7.13% 7.17% 7.98%
Portfolio Turnover.............................. 8%* 21% 27% 28%
SUPPLEMENTAL RATIOS:
Ratio of Expenses to Average Net Assets
Including Preferred Shares (c)................ .92% .98% 1.09% 1.10%
Ratio of Net Investment Income to Average Net
Assets Applicable to Common Shares (d)........ 6.32% 6.68% 5.37% 5.81%
SENIOR SECURITIES:
Total Preferred Shares Outstanding.............. 1,800 1,800 1,800 1,800
Asset Coverage Per Preferred Share (e).......... $67,999 $67,762 $68,588 $66,008
Involuntary Liquidating Preference Per Preferred
Share......................................... $25,000 $25,000 $25,000 $25,000
Average Market Value Per Preferred Share........ $25,000 $25,000 $25,000 $25,000
</Table>
* Non-Annualized
(a) As required, effective November 1, 2001, the Trust has adopted the
provisions of the AICPA Audit and Accounting Guide for Investment Companies
and began accreting market discount on fixed income securities. The effect
of this change for the year ended October 31, 2002 was to increase net
investment income per share by $.01, decrease net realized and unrealized
gains and losses per share by $.01 and increase the ratio of net investment
income to average net assets applicable to common shares from 7.11% to
7.13%. Per share, ratios, and supplemental data for periods prior to October
31, 2002 have not been restated to reflect this change in presentation.
(b) Total return assumes an investment at the common share 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 share market price at the end of the
period indicated.
(c) Ratios do not reflect the effect of dividend payments to preferred
shareholders.
(d) Ratios reflect the effect of dividend payments to preferred shareholders.
(e) Calculated by subtracting the Trust's total liabilities (not including the
preferred shares) from the Trust's total assets and dividing this by the
number of preferred shares outstanding.
15
<Table>
<Caption>
MARCH 27, 1992
(COMMENCEMENT
YEAR ENDED OCTOBER 31, OF INVESTMENT
- ----------------------------------------------------------------------------- OPERATIONS) TO
1999 1998 1997 1996 1995 1994 1993 OCTOBER 31, 1992
- ------------------------------------------------------------------------------------------------
$ 17.51 $ 17.16 $ 16.58 $ 16.29 $ 14.67 $ 17.64 $ 14.88 $ 14.70
------- -------- -------- -------- -------- -------- -------- --------
1.19 1.24 1.26 1.30 1.30 1.28 1.28 .59
(1.95) .70 .84 .40 1.64 (3.00) 2.85 .10
(.22) (.28) (.27) (.32) (.40) (.26) (.26) (.13)
(.10) (.07) (.06) (.04) -0- (.01) (.05) -0-
------- -------- -------- -------- -------- -------- -------- --------
(1.08) 1.59 1.77 1.34 2.54 (1.99) 3.82 .56
(.99) (.99) (.99) (.96) (.92) (.92) (.92) (.38)
(.34) (.25) (.20) (.09) -0- (.06) (.14) -0-
------- -------- -------- -------- -------- -------- -------- --------
$ 15.10 $ 17.51 $ 17.16 $ 16.58 $ 16.29 $ 14.67 $ 17.64 $ 14.88
======= ======== ======== ======== ======== ======== ======== ========
$14.375 $ 18.00 $ 16.75 $ 15.75 $ 14.75 $ 12.75 $ 16.375 $ 14.25
-13.54% 15.46% 12.96% 14.14% 23.60% -16.67% 23.01% -2.50%*
$ 70.2 $ 81.0 $ 79.3 $ 76.6 $ 75.3 $ 67.8 $ 81.5 $ 68.7
1.74% 1.71% 1.77% 1.80% 1.83% 1.79% 1.73% 1.70%
7.15% 7.16% 7.57% 7.97% 8.39% 7.91% 7.78% 6.67%
25% 27% 23% 16% 13% 14% 27% 51%*
1.10% 1.10% 1.12% 1.13% 1.12% 1.12% 1.09% 1.18%
5.84% 5.54% 5.93% 5.97% 5.83% 6.31% 6.21% 5.18%
1,800 900 900 900 900 900 900 900
$64,025 $140,049 $138,057 $135,121 $133,628 $125,291 $140,558 $126,364
$25,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
$25,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
</Table>
See Notes to Financial Statements
16
NOTES TO
FINANCIAL STATEMENTS
April 30, 2003 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen Trust for Investment Grade California Municipals (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 and California
income taxes, consistent with preservation of capital. The Trust will invest in
a portfolio consisting substantially of California municipal obligations rated
investment grade at the time of investment. The Trust commenced investment
operations on March 27, 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 accounting principles
generally accepted in the United States of America 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 or dealers 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. At April 30, 2003, the Trust had
$1,038,940 of when-issued and delayed delivery purchase commitments.
C. INVESTMENT INCOME Interest income is recorded on an accrual basis. Bond
premium is amortized and discount is accreted over the expected life of each
applicable security.
17
NOTES TO
FINANCIAL STATEMENTS
April 30, 2003 (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.
At April 30, 2003 the cost and related gross unrealized appreciation and
depreciation are as follows:
<Table>
Cost of investments for tax purposes........................ $112,189,235
============
Gross tax unrealized appreciation........................... $ 7,634,525
Gross tax unrealized depreciation........................... (2,751)
------------
Net tax unrealized appreciation on investments.............. $ 7,631,774
============
</Table>
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.
The tax character of distributions paid during the year ended October 31,
2002 was as follows:
<Table>
<Caption>
2002
Distribution paid from:
Ordinary Income........................................... $ 169,723
Long-term capital gain.................................... 1,382,282
----------
$1,552,005
==========
</Table>
As of October 31, 2002, the components of distributable earnings on a tax
basis were as follows:
<Table>
Undistributed ordinary income............................... $ 49,226
Undistributed long-term capital gain........................ 1,229,956
</Table>
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 .60% of the average
daily 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
18
NOTES TO
FINANCIAL STATEMENTS
April 30, 2003 (Unaudited)
Trust's Administrator, at an annual rate of .05% of the average daily 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, 2003, the Trust recognized expenses of
approximately $3,100 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.
Under separate Accounting Services and Legal Services agreements, the
Adviser provides accounting and legal services to the Trust. The Adviser
allocates the cost of such services to each trust. For the six months ended
April 30, 2003, the Trust recognized expenses of approximately $12,800
representing Van Kampen's cost of providing accounting and legal services to the
Trust, which are reported as part of "Other" and "Legal" expenses, respectively,
in the Statement of Operations.
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 upon retirement 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 $10,368,470 and $9,887,120, 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 may seek to manage the portfolio's interest rate exposure in a
changing interest rate environment by engaging in transactions involving
interest rate swaps, caps, floors or collars. The Trust expects to enter into
these transactions primarily as a hedge against anticipated interest rate or
fixed-income market changes, for duration management purposes or for risk
management purposes but may also enter into these transactions to generate
additional income. Risks may arise as a result of the potential inability of the
counterparties to meet the terms of their contracts or agreements. During the
six months ended April 30, 2003, the Trust did not enter into any of these
transactions.
19
NOTES TO
FINANCIAL STATEMENTS
April 30, 2003 (Unaudited)
5. PREFERRED SHARES
As of April 30, 2003, the Trust has outstanding 1,800 Auction Preferred Shares
("APS"). Dividends are cumulative and the dividend rate is currently reset every
28 days through an auction process. The rate in effect on April 30, 2003 was
0.95%. During the six months ended April 30, 2003, rates ranged from 0.70% to
1.70%.
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 in the Statement of Operations.
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.
20
BOARD OF TRUSTEES AND IMPORTANT ADDRESSES
VAN KAMPEN TRUST FOR INVESTMENT GRADE
CALIFORNIA MUNICIPALS
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*
INVESTMENT ADVISER
VAN KAMPEN INVESTMENT ADVISORY CORP.
1 Parkview Plaza
P.O. Box 5555
Oakbrook Terrace, IL 60181-5555
CUSTODIAN AND TRANSFER AGENT
STATE STREET BANK
AND TRUST COMPANY
c/o EquiServe
P.O. Box 43011
Providence, Rhode Island 02940-3011
LEGAL COUNSEL
SKADDEN, ARPS, SLATE,
MEAGHER & FLOM (ILLINOIS)
333 West Wacker Drive
Chicago, Illinois 60606
INDEPENDENT AUDITORS
DELOITTE & TOUCHE LLP
180 North Stetson Avenue
Chicago, Illinois 60601
* "Interested persons" of the Trust, as defined in the Investment Company Act
of 1940, as amended.
21
Van Kampen
Privacy Notice
The Van Kampen companies and investment products* respect your right to privacy.
We also know that you expect us to conduct and process your business in an
accurate and efficient manner. To do so, we must collect and maintain certain
nonpublic personal information about you. This is information we collect from
you on applications or other forms, and from the transactions you make with us,
our affiliates, or third parties. We may also collect information you provide
when using our web site, and text files (a.k.a. "cookies") may be placed on your
computer to help us to recognize you and to facilitate transactions you
initiate. We do not disclose any nonpublic personal information about you or any
of our former customers to anyone, except as permitted by law. For instance, so
that we may continue to offer you Van Kampen investment products and services
that meet your investing needs, and to effect transactions that you request or
authorize, we may disclose the information we collect to companies that perform
services on our behalf, such as printers and mailers that assist us in the
distribution of investor materials. These companies will use this information
only for the services for which we hired them, and are not permitted to use or
share this information for any other purpose. To protect your nonpublic personal
information internally, we permit access to it only by authorized employees, and
maintain physical, electronic and procedural safeguards to guard your nonpublic
personal information.
* Includes Van Kampen Investments Inc., Van Kampen Investment Advisory Corp.,
Van Kampen Asset Management Inc., Van Kampen Advisors Inc., Van Kampen
Management Inc., Van Kampen Funds Inc., Van Kampen Investor Services Inc., Van
Kampen Trust Company, Van Kampen System Inc. and Van Kampen Exchange Corp., as
well as the many Van Kampen mutual funds and Van Kampen unit investment
trusts.
Van Kampen Funds Inc.
1 Parkview Plaza, P.O. Box 5555
Oakbrook Terrace, IL 60181-5555
www.vankampen.com
[VAN KAMPEN INVESTMENTS LOGO]
Copyright (C)2003 Van Kampen Funds Inc. All rights reserved.
VIC SAR 6/03 Member NASD/SIPC.
11196F03-AS-6/03
Item 2. Code of Ethics.
Not applicable for semi-annual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable for semi-annual reports.
Item 6. [Reserved.]
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable for semi-annual reports.
Item 8. [Reserved.]
Item 9.
The Trust's principal executive officer and principal financial officer have
concluded that the Trust's disclosure controls and procedures are sufficient to
ensure that information required to be disclosed by the Trust in this Form N-CSR
was recorded, processed, summarized and reported within the time periods
specified in the Securities and Exchange Commission's rules and forms, based
upon such officers' evaluation of these controls and procedures as of a date
within 90 days of the filing date of the report.
There were no significant changes or corrective actions with regard to
significant deficiencies or material weaknesses in the Trust's internal controls
or in other factors that could significantly affect the Trust's internal
controls subsequent to the date of their evaluation.
Item 10. Exhibits.
(a) Code of Ethics - Not applicable for semi-annual reports.
(b) Certifications of Principal Executive Officer and Principal Financial
Officer attached hereto as part of EX-99.CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Van Kampen Trust for Investment Grade California Municipals
-------------------------------------------------------------------
By: /s/ Ronald E. Robison
----------------------------------------------------------------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: June 23, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed by the following
persons on behalf of the registrant and in the capacities and on the dates
indicated.
By: /s/ Ronald E. Robison
----------------------------------------------------------------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: June 23, 2003
By: /s/ John L. Sullivan
----------------------------------------------------------------------------
Name: John Sullivan
Title: Principal Financial Officer
Date: June 23, 2003