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 811-7676

                    Van Kampen Municipal Opportunity Trust II

 -----------------------------------------------------------------------------
               (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

Date of reporting period: 10/31/03



Item 1. Report to Shareholders

       Welcome, Shareholder

       In this report, you'll learn about how your investment in Van Kampen
       Municipal Opportunity Trust II performed during the annual period. The
       portfolio management team will provide an overview of the market
       conditions and discuss some of the factors that affected investment
       performance during the reporting period. In addition, this report
       includes the trust's financial statements and a list of trust investments
       as of October 31, 2003.

       Market forecasts provided in this report may not necessarily come to
       pass. There is no assurance that the trust will achieve its investment
       objective. The trust is subject to market risk, which is the possibility
       that the market values of securities owned by the trust will decline and,
       therefore, the value of the trust shares may be less than what you paid
       for them. Accordingly, you can lose money investing in this trust.

       NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE


Performance Summary

<Table>
<Caption>
MUNICIPAL OPPORTUNITY TRUST II
SYMBOL: VOT
- -------------------------------------------------------
AVERAGE ANNUAL                 BASED ON      BASED ON
TOTAL RETURNS                    NAV       MARKET PRICE
                                     

Since Inception (6/25/93)       6.70%          5.97%

10-year                         6.27           6.08

5-year                          6.52           6.81

1-year                          7.24          10.27
- -------------------------------------------------------
</Table>

Past performance is no guarantee of future results. Investment return, net asset
value (NAV) and common share market price 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 NAV per share is determined by dividing
the value of the trust's portfolio securities, cash and other assets, less all
liabilities, by the total number of common shares outstanding. The common share
market price is 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. Total return assumes an
investment at the beginning of the period, reinvestment of all distributions for
the period in accordance with the trust's dividend reinvestment plan, and sale
of all shares at the end of the period.

The Lehman Brothers Municipal Bond Index is a broad-based statistical composite
of municipal bonds. The index is unmanaged and does not include any sales
charges or fees. Such costs would lower performance. It is not possible to
invest directly in an index.

                                                                               1


Trust Report

FOR THE 12-MONTH PERIOD ENDED OCTOBER 31, 2003

Van Kampen Municipal Opportunity Trust II is managed by the adviser's Municipal
Fixed Income team.(1) Current members include Timothy D. Haney, Vice President;
Robert Wimmel, Vice President; and John Reynoldson, Executive Director.

MARKET CONDITIONS

The economic backdrop for the 12 months ended October 31 was largely
characterized by the persistent weakness of the U.S. economy. One of the most
closely watched economic indicators, employment strength, was in negative
territory for much of the period. Repeated comments from government and
private-sector economists suggesting that the U.S. economy might be entering a
deflationary period also seemed to weigh heavily on the minds of investors over
the course of the year. At the same time, ongoing budgetary and fiscal
difficulties at the state and local level contributed to ratings downgrades for
many municipal bonds. The Federal Reserve Board (the Fed) attempted to allay
these fears and keep the economy moving in the right direction by cutting the
Fed Funds target rate twice during the period to a level of 1.00 percent.
Although the stock markets appeared to look past the sluggish economic data,
bonds, in general, were hampered.

While yields on intermediate- and long-term bonds ended the period roughly where
they began, the road between those two points was decidedly bumpy. The 12-month
period can be divided into two distinct market environments. The first of these,
which lasted from October 2002 to mid-June 2003, saw municipal yields fall by
roughly 80 basis points to levels not seen since the late 1960s. These
plummeting yields led to a surge in issuance as municipalities moved to lock in
low financing and, in the case of older bonds, low refinancing costs. These
record levels of supply met with substantial demand as investors in search of
relative stability poured cash into municipal bond funds. Demand for municipal
bonds was also strong from so-called "cross-over" buyers--investors who
traditionally favor taxable investments, but were drawn to the relatively
attractive yields of municipal bonds.

The municipal market reversed abruptly in mid-June, when yields began to climb
from their lows. Investors during this phase shifted their attention to the
advancing equity market, which reduced demand for municipal bonds. Interest from
cross-over investors also evaporated as the relative attractiveness of the
taxable market returned. Issuance remained strong throughout this leg of the
period, though it abated somewhat in the last three months of the reporting
year. These forces combined to drive municipal bond yields off of their historic
lows, ending the period where they began.

(1)Team members may change without notice at any time.

 2


PERFORMANCE ANALYSIS

The trust's return can be calculated based upon either the market price or the
net asset value (NAV) of its shares. NAV per share is determined by dividing the
value of the trust's portfolio securities, cash and other assets, less all
liabilities by the total number of common shares outstanding, while market price
reflects the supply and demand for the shares. As a result, the two returns can
differ significantly. On both a market price and an NAV basis, the trust
outperformed its benchmark, the Lehman Brothers Municipal Bond Index. (See table
below.)

The trust's significant position in health-care bonds generated attractive
income, as well as price appreciation driven by yield-seeking investors drawn to
the bonds' relatively robust yields. Certain issues in this sector met their
investment objectives during the period, and we subsequently sold them in favor
of bonds with superior total-return potential. Our strategy of avoiding housing
bonds also helped the trust; the sector performed poorly amidst record levels of
mortgage refinancing activity.

The trust uses leverage to enhance its dividend to common shareholders by
borrowing money at short-term rates through the issuance of preferred shares.
The proceeds are reinvested in longer-term securities, taking advantage of the
difference between short- and longer-term rates. With short-term rates at
historic lows during the period, the difference between short- and longer-term
rates was relatively high. This made using leverage a particularly profitable
approach during the period, and added to the trust's strong performance.

While the trust outperformed its benchmark, not all of its positions performed
strongly over the entire period in question. With interest rates falling to
historic lows, our analysis showed an increasing possibility of a damaging
upward shift in interest rates. We positioned the trust defensively by
maintaining a duration (a measure of interest-rate sensitivity) that was
slightly shorter than that of the benchmark during the period. This position
helped the trust when rates climbed, but kept it from fully participating in the
bond market rally earlier in the period.

We attempted to be equally defensive in managing the portfolio's maturity
structure. Given the steepness of the yield curve for much of the period

TOTAL RETURN FOR THE 12-MONTH PERIOD ENDED OCTOBER 31, 2003

<Table>
<Caption>
- ----------------------------------------------------------
      BASED ON     BASED ON       LEHMAN BROTHERS
        NAV      MARKET PRICE   MUNICIPAL BOND INDEX
                                         

       7.24%        10.27%             5.11%
- ----------------------------------------------------------
</Table>

Past performance is no guarantee of future results. Investment return, net asset
value and common share market price will fluctuate and trust shares, when sold,
may be worth more or less than their original cost. See Performance Summary for
additional performance information.

                                                                               3


(steepness is a measure of the difference in yields between long- and
short-maturity securities), we focused on a strategy designed to outperform in a
curve-flattening environment. We purchased premium bonds in the 13- to 20-year
range which were priced to 10-year call dates. These bonds offer attractive
yields compared to bonds with similar interest-rate risk. We sold bonds in the
7- to 10-year range, an area of the curve that we feel will underperform if
short rates rise. This curve flattening did not occur as early as we
anticipated, however, and the strategy hampered performance when short rates
fell in the first part of the period. However, when long-bond yields rose in the
latter part of the period, our emphasis on defensive bonds in the 13- to 20-year
range helped to preserve principal.

In addition to this core strategy, we also traded high-grade bonds in the
30-year range based on relative value fluctuations. We sought out issues that
were cheap relative to comparable bonds, and then sold them after they achieved
their performance targets in order to reinvest the proceeds into securities that
we believe that have greater total-return prospects.

Many municipalities faced budget shortfalls and potential credit downgrades
during the period. In this challenging environment, we sought to preserve
principal by emphasizing the highest credit quality tiers of the municipal bond
market. As of October 31, 2003, approximately 83 percent of the trust's long-
term investments were invested in bonds rated AA and above. We will continue
with our disciplined investment approach, monitoring the market closely for
compelling opportunities.

<Table>
                                         
TOP 5 SECTORS AS OF 10/31/03                RATINGS ALLOCATION AS OF 10/31/03
General Purpose               18.1%         AAA/Aaa                        70.1%
Health Care                   16.8          AA/Aa                          13.0
Public Education              13.9          A/A                            10.7
Transportation                 9.1          BBB/Baa                         4.7
Industrial Revenue             8.1          BB/Ba                           0.3
                                            B/B                             0.5
                                            Non-Rated                       0.7
</Table>

Subject to change daily. All percentages are as a percentage of long-term
investments. Provided for informational purposes only and should not be deemed
as a recommendation to buy securities in the sectors shown above. Securities are
classified by sectors that represent broad groupings of related industries.
Rating allocations based upon ratings as issued by Standard and Poor's and
Moody's, respectively. Morgan Stanley is a full-service securities firm engaged
in securities trading and brokerage activities, investment banking, research and
analysis, financing and financial advisory services.

 4


PROXY VOTING POLICIES AND PROCEDURES

       A description of the trust's policies and procedures with respect to the
       voting of proxies relating to the trust's portfolio securities is
       available without charge, upon request, by calling 1-800-847-2424. This
       information is also available on the Securities and Exchange Commission's
       website at http://www.sec.gov.

                                                                               5


                         BY THE NUMBERS

YOUR TRUST'S INVESTMENTS

October 31, 2003
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  160.8%
          ALABAMA  2.4%
$1,000    Birmingham Baptist Med Ctr AL Baptist Hlth Sys
          Ser A........................................... 5.875%   11/15/24   $   1,045,820
 1,035    Lee Cnty, AL Sch Wts Ltd Oblig (MBIA Insd)...... 5.000    02/01/16       1,106,456
 1,090    Lee Cnty, AL Sch Wts Ltd Oblig (MBIA Insd)...... 5.000    02/01/17       1,156,632
 1,000    Valley, AL Spl Care Fac Fin Auth Rev Lanier Mem
          Hosp Ser A...................................... 5.600    11/01/16         916,650
                                                                               -------------
                                                                                   4,225,558
                                                                               -------------
          ARIZONA  7.5%
 5,000    Arizona Sch Fac Brd Ctfs Ser B (FGIC Insd)...... 5.250    09/01/18       5,404,400
 2,235    Arizona Tourism & Sports Auth Tax Rev
          Multipurpose Stad Fac Ser A (MBIA Insd)......... 5.375    07/01/21       2,398,557
 1,085    Maricopa Cnty, AZ Uni Sch Dist No 41 Gilbert
          Rfdg (FSA Insd)................................. 4.500    07/01/13       1,146,747
 1,300    Scottsdale, AZ Indl Dev Auth Hosp Rev Scottsdale
          Hlthcare........................................ 5.800    12/01/31       1,320,930
 2,685    South Campus Group LLC AZ Std Hsg Rev AZ St Univ
          South Campus Proj (MBIA Insd)................... 5.625    09/01/35       2,877,917
                                                                               -------------
                                                                                  13,148,551
                                                                               -------------
          CALIFORNIA  19.2%
 7,195    Anaheim, CA Pub Fin Auth Lease Rev Cap Apprec
          Sub Pub Impt Proj Ser C (FSA Insd)..............   *      09/01/21       2,872,820
 1,300    Anaheim, CA Pub Fin Auth Lease Rev Pub Impt Proj
          Ser C (FSA Insd)................................ 6.000    09/01/16       1,536,626
 2,000    California St Dept Wtr Res Pwr Ser A............ 6.000    05/01/15       2,273,920
 2,345    California St Dept Wtr Res Pwr Ser A (XLCA
          Insd)........................................... 5.375    05/01/17       2,543,598
 4,600    California St Pub Wks Brd Lease Rev Var Univ CA
          Proj Ser A Rfdg (a)............................. 5.500    06/01/10       5,244,506
 5,905    California St Pub Wks Brd Lease Rev Var Univ CA
          Proj Ser A Rfdg................................. 5.500    06/01/14       6,665,682
 5,000    Foothill/Eastern Corridor Agy CA Toll Rd Rev Cap
          Apprec Rfdg (MBIA Insd).........................   *      01/15/18       2,385,700
 2,000    Foothill/Eastern Corridor Agy CA Toll Rd Rev Sr
          Lien Ser A (Prerefunded @ 01/01/07)............. 6.500    01/01/32       2,293,020
 5,000    Los Angeles, CA Uni Sch Dist Ser A (FSA Insd)... 5.250    07/01/20       5,345,650
 2,465    Los Angeles, CA Uni Sch Dist Ser B (FGIC
          Insd)........................................... 5.000    07/01/23       2,504,637
                                                                               -------------
                                                                                  33,666,159
                                                                               -------------
</Table>

 6                                             See Notes to Financial Statements


YOUR TRUST'S INVESTMENTS

October 31, 2003

<Table>
<Caption>
PAR
AMOUNT                                                                            MARKET
(000)     DESCRIPTION                                      COUPON   MATURITY       VALUE
                                                                   
          COLORADO  10.0%
$1,000    Arapahoe Cnty, CO Cap Impt Tr Fd Hwy Rev E-470
          Proj (Prerefunded @ 08/31/05)................... 7.000%   08/31/26   $   1,133,690
 7,500    Arapahoe Cnty, CO Cap Impt Tr Fd Hwy Rev E-470
          Proj Ser C (Prerefunded @ 08/31/05).............   *      08/31/26       1,525,050
 1,945    Colorado Ed & Cultural Impt Charter Sch Pinnacle
          Rfdg (XLCA Insd)................................ 5.250    06/01/23       2,024,414
 1,000    Colorado Hlth Fac Auth Rev Catholic Hlth
          Initiatives Ser A............................... 5.500    03/01/32       1,019,660
 1,250    Colorado Hlth Fac Auth Rev Hosp Portercare
          Adventist Hlth.................................. 6.500    11/15/31       1,347,250
 1,500    Denver, CO City & Cnty Arpt Rev Ser D........... 7.750    11/15/13       1,851,900
 3,515    E-470 Pub Hwy Auth CO Rev Cap Apprec Sr Ser B
          (MBIA Insd).....................................   *      09/01/13       2,310,445
 6,160    E-470 Pub Hwy Auth CO Rev Sr Ser A (MBIA
          Insd)........................................... 5.000    09/01/21       6,312,583
                                                                               -------------
                                                                                  17,524,992
                                                                               -------------
          ILLINOIS  16.3%
 3,750    Bolingbrook, IL Cap Apprec Ser B (MBIA Insd)....   *      01/01/32         770,062
 2,850    Chicago, IL Brd Ed Cap Apprec Sch Reform B-1
          (FGIC Insd).....................................   *      12/01/23         974,985
 3,365    Chicago, IL Cap Apprec (Prerefunded @ 07/01/05)
          (AMBAC Insd)....................................   *      01/01/17       1,582,526
   830    Chicago, IL Single Family Mtg Rev Ser A (GNMA
          Collateralized)................................. 7.000    09/01/27         834,324
   160    Chicago, IL Single Family Mtg Rev Ser B (GNMA
          Collateralized)................................. 7.625    09/01/27         163,354
 2,540    Cook Cnty, IL Sch Dist No 122 Oak Lawn Cap
          Apprec (FGIC Insd)..............................   *      12/01/15       1,466,139
 4,500    Cook Cnty, IL Ser A (FGIC Insd)................. 5.500    11/15/31       4,730,580
 1,000    Illinois Dev Fin Auth Rev Cmnty Rehab Providers
          Fac Ser A....................................... 7.375    07/01/25       1,061,530
 4,305    Illinois Hlth Fac Auth Rev OSF Hlthcare Sys
          Rfdg............................................ 6.000    11/15/10       4,397,644
 8,000    Illinois St First Ser (FSA Insd)................ 5.250    12/01/19       8,532,080
 3,400    Illinois St First Ser (FSA Insd)................ 5.250    04/01/27       3,510,228
   516    Peoria, Moline & Freeport, IL Coll Mtg Ser A
          (GNMA Collateralized)........................... 7.600    04/01/27         542,146
                                                                               -------------
                                                                                  28,565,598
                                                                               -------------
          INDIANA  7.6%
 2,805    Dekalb Eastn High Sch Bldg Corp Ind First Mtg
          (FSA Insd)...................................... 6.000    01/15/18       3,182,385
 4,000    East Chicago, IN Elementary Sch Bldg Corp First
          Mtg Ser A....................................... 6.250    07/05/08       4,559,840
 3,000    Indiana Hlth Fac Fin Auth Hosp Rev Columbus Regl
          Hosp Rfdg (FSA Insd)............................ 7.000    08/15/15       3,749,340
 2,000    Petersburg, IN Pollutn Ctl Rev IN Pwr & Lt...... 5.950    12/01/29       1,841,660
                                                                               -------------
                                                                                  13,333,225
                                                                               -------------
</Table>

See Notes to Financial Statements                                              7


YOUR TRUST'S INVESTMENTS

October 31, 2003

<Table>
<Caption>
PAR
AMOUNT                                                                            MARKET
(000)     DESCRIPTION                                      COUPON   MATURITY       VALUE
                                                                   
          KENTUCKY  1.8%
$3,000    Kentucky St Ppty & Bldg Commn Proj No 79 (MBIA
          Insd)........................................... 5.125%   10/01/19   $   3,184,800
                                                                               -------------

          LOUISIANA  7.9%
 2,500    Louisiana Loc Govt Envir Fac Pkg Fac Corp Garage
          Proj Ser A (AMBAC Insd)......................... 5.375    10/01/31       2,604,500
 6,000    New Orleans, LA Rfdg (MBIA Insd)................ 5.125    09/01/21       6,251,820
 2,000    New Orleans, LA Rfdg (FGIC Insd)................ 5.500    12/01/21       2,233,700
 2,800    Saint Charles Parish, LA Solid Waste Disp Rev LA
          Pwr & Lt Co Proj (FSA Insd) (a)................. 7.050    04/01/22       2,813,664
                                                                               -------------
                                                                                  13,903,684
                                                                               -------------
          MASSACHUSETTS  6.7%
 2,000    Massachusetts Muni Whsl Elec Co Proj No 6-A
          (MBIA Insd)..................................... 5.250    07/01/16       2,160,200
 5,000    Massachusetts St Cons Ln Ser E (Prerefunded @
          01/01/13) (FSA Insd)............................ 5.250    01/01/20       5,550,350
 1,000    Massachusetts St Hlth & Ed Fac Auth Rev Saint
          Mem Med Ctr Ser A............................... 6.000    10/01/23         899,690
 3,065    Massachusetts St Hsg Fin Agy Hsg Rev Insd Rental
          Ser A Rfdg (AMBAC Insd)......................... 6.600    07/01/14       3,154,774
                                                                               -------------
                                                                                  11,765,014
                                                                               -------------
          MICHIGAN  5.3%
 3,000    Detroit, MI City Sch Dist Sch Bldg & Site Impt
          Ser A (FGIC Insd)............................... 5.375    05/01/24       3,166,680
 1,000    Hillsdale, MI Hosp Fin Auth Hosp Rev Hillsdale
          Cmnty Hlth Ctr.................................. 5.250    05/15/26         852,620
 1,295    Macomb Cnty, MI Hosp Fin Auth Hosp Rev Mt
          Clemens Gen Hosp Ser B.......................... 5.875    11/15/34       1,232,154
 1,485    Michigan St Hsg Dev Auth Multi-Family Rev Adj
          Ltd Oblig Hsg Orion Four Ser A (Var Rate Cpn)... 6.250    08/01/39       1,519,155
 1,500    Michigan St Hsg Dev Auth Multi-Family Rev Ltd
          Oblig Ser A Rfdg (GNMA Collateralized).......... 6.600    04/01/30       1,554,030
 1,000    Michigan St Strategic Fd Ltd Oblig Rev Detroit
          Edison Poll Ctl Ser B Rfdg...................... 5.650    09/01/29       1,013,480
                                                                               -------------
                                                                                   9,338,119
                                                                               -------------
          MISSISSIPPI  4.9%
 2,000    Mississippi Business Fin Corp MS Pollutn Ctl Rev
          Sys Energy Res Inc Proj Rfdg.................... 5.900    05/01/22       2,000,000
 2,000    Mississippi Dev Bk Spl Oblig Cap Proj & Equip
          Acquisition Ser A2 (AMBAC Insd)................. 5.000    07/01/24       2,040,060
 1,550    Mississippi Dev Bk Spl Oblig Madison Cnty Hosp
          Proj (Prerefunded @ 07/01/09)................... 6.400    07/01/29       1,871,020
 2,595    Mississippi Dev Bk Spl Oblig MS Ltd Oblig Hosp
          Impts (MBIA Insd)............................... 5.250    07/01/32       2,662,081
                                                                               -------------
                                                                                   8,573,161
                                                                               -------------
</Table>

 8                                             See Notes to Financial Statements


YOUR TRUST'S INVESTMENTS

October 31, 2003

<Table>
<Caption>
PAR
AMOUNT                                                                            MARKET
(000)     DESCRIPTION                                      COUPON   MATURITY       VALUE
                                                                   
          MISSOURI  7.0%
$2,000    Cape Girardeau Cnty, MO Indl Dev Auth Hlthcare
          Fac Rev Southeast MO Hosp Assoc................. 5.625%   06/01/27   $   2,024,320
 1,500    Saint Louis Cnty, MO Mtg Rev Ctf Rcpt Ser H
          (Escrowed to Maturity).......................... 5.400    07/01/18       1,654,755
 5,855    St Louis, MO Arpt Rev Arpt Dev Pgm Ser A (MBIA
          Insd)........................................... 5.250    07/01/31       6,009,104
 2,380    St Louis, MO Arpt Rev Cap Impt Pgm Ser A (MBIA
          Insd)........................................... 5.375    07/01/19       2,551,765
                                                                               -------------
                                                                                  12,239,944
                                                                               -------------
          NEBRASKA  2.5%
 4,260    University NE Univ Rev Lincoln Student Fees &
          Fac Ser B (b)................................... 5.000    07/01/23       4,339,151
                                                                               -------------

          NEVADA  2.1%
 3,500    Clark Cnty, NV Arpt Rev Sub Lien Ser B (FGIC
          Insd)........................................... 5.250    07/01/34       3,579,730
                                                                               -------------

          NEW JERSEY  4.5%
 1,000    New Jersey Hlthcare Fac Fin Auth Rev Gen Hosp
          Ctr at Passaic (Escrowed to Maturity) (FSA
          Insd)........................................... 6.000    07/01/06       1,093,770
 4,000    Salem Cnty, NJ Indl Pollutn Ctl Fin Auth Rev
          Pollutn Ctl Pub Svc Elec & Gas Ser A (MBIA
          Insd)........................................... 5.450    02/01/32       4,055,520
 2,500    Secaucus, NJ Muni Util Auth Swr Rev Ser A
          Rfdg............................................ 6.000    12/01/08       2,675,975
                                                                               -------------
                                                                                   7,825,265
                                                                               -------------
          NEW YORK  13.1%
 4,000    New York City Hlth & Hosp Corp Rev Hlth Sys Ser
          A (AMBAC Insd).................................. 5.000    02/15/11       4,401,520
 2,500    New York City Ser A............................. 7.000    08/01/04       2,605,675
 1,870    New York City Ser A1............................ 6.375    08/01/10       2,029,960
 3,130    New York City Ser A1 (Prerefunded @ 08/01/05)... 6.375    08/01/10       3,439,964
 2,000    New York City Ser B1 (Prerefunded @ 08/15/04)
          (MBIA Insd)..................................... 6.950    08/15/12       2,113,380
 1,000    New York St Dorm Auth Rev City Univ Third Gen
          Res Ser 2 (Prerefunded @ 07/01/04) (MBIA
          Insd)........................................... 6.250    07/01/19       1,034,880
 1,520    New York St Dorm Auth Rev Insd John T Mather Mem
          Hosp (Connie Lee Insd).......................... 6.500    07/01/09       1,803,541
   500    New York St Energy Res & Dev Auth St Service
          Contract Rev Ser B.............................. 5.500    04/01/05         527,165
 2,000    New York St Urban Dev Corp Rev Correctional Fac
          Ser A Rfdg (Prerefunded @ 01/01/04)............. 5.500    01/01/16       2,055,000
 3,000    New York St Urban Dev Corp Rev Personal Income
          Tax Ser C-1..................................... 5.000    03/15/33       3,009,840
                                                                               -------------
                                                                                  23,020,925
                                                                               -------------
          OHIO  2.5%
 1,000    Cuyahoga Cnty, OH Hosp Fac Rev Canton Inc
          Proj............................................ 7.500    01/01/30       1,103,390
 1,000    Franklin Cnty, OH Hosp Rev Holy Cross Hlth Sys
          Ser B Rfdg (MBIA Insd).......................... 5.250    06/01/08       1,043,200
</Table>

See Notes to Financial Statements                                              9


YOUR TRUST'S INVESTMENTS

October 31, 2003

<Table>
<Caption>
PAR
AMOUNT                                                                            MARKET
(000)     DESCRIPTION                                      COUPON   MATURITY       VALUE
                                                                   
          OHIO (CONTINUED)
$1,040    Lorain Cnty, OH Hosp Rev EMH Regl Med Ctr Rfdg
          (AMBAC Insd).................................... 7.750%   11/01/13   $   1,183,915
   950    Strongsville, OH (Prerefunded @ 12/01/06)....... 6.700    12/01/11       1,112,792
                                                                               -------------
                                                                                   4,443,297
                                                                               -------------
          OKLAHOMA  2.6%
 1,000    Tulsa Cnty, OK Pub Fac Auth Cap Impt Rev (AMBAC
          Insd)........................................... 6.250    11/01/22       1,153,370
 2,960    Tulsa, OK Indl Auth Hosp Rev Hillcrest Med Ctr
          Proj Rfdg (Escrowed to Maturity) (Connie Lee
          Insd)........................................... 6.250    06/01/07       3,388,223
                                                                               -------------
                                                                                   4,541,593
                                                                               -------------
          OREGON  2.9%
 1,320    Oregon St Vets Welfare Ser 76A.................. 6.050    10/01/28       1,368,972
 3,580    Yamhill Cnty, OR Sch Dist No 029J Newburg (MBIA
          Insd)........................................... 5.250    06/15/21       3,784,346
                                                                               -------------
                                                                                   5,153,318
                                                                               -------------
          PENNSYLVANIA  3.8%
 4,680    Erie, PA Sch Dist Cap Apprec Rfdg (FSA Insd)....   *      09/01/20       2,038,000
 1,500    Pennsylvania Econ Dev Fin Auth Res Recovery Rev
          Colver Proj Ser D............................... 7.050    12/01/10       1,549,905
 1,650    Pennsylvania Hsg Fin Agy Single Family Ser 56A
          (FHA/VA Gtd).................................... 6.150    10/01/27       1,717,254
 1,315    State Pub Sch Bldg Auth PA Sch Rev Burgettstown
          Sch Dist Ser D (Prerefunded @ 02/01/05) (MBIA
          Insd)........................................... 6.450    02/01/10       1,401,132
                                                                               -------------
                                                                                   6,706,291
                                                                               -------------
          SOUTH CAROLINA  4.1%
 3,115    Greenville, SC Impt & Rfdg (MBIA Insd).......... 5.250    04/01/21       3,301,184
 3,750    South Carolina Jobs Econ Dev Auth Indl Rev Elec
          & Gas Co Proj Ser B (AMBAC Insd)................ 5.450    11/01/32       3,862,612
                                                                               -------------
                                                                                   7,163,796
                                                                               -------------
          SOUTH DAKOTA  0.8%
 1,375    Deadwood, SD Ctf Partn (ACA Insd)............... 6.375    11/01/20       1,469,765
                                                                               -------------

          TENNESSEE  0.9%
 1,300    Johnson City, TN Hlth & Ed Fac Brd Hosp Rev
          First Mtg Ser A Rfdg (MBIA Insd)................ 7.500    07/01/25       1,630,070
                                                                               -------------

          TEXAS  7.4%
 2,335    Beaumont, TX Wtrwks & Swr Sys (FGIC Insd)....... 6.250    09/01/14       2,722,120
 2,000    Brazos Cnty, TX Hlth Fac Dev Oblig Grp.......... 5.375    01/01/32       1,988,340
 1,500    Brazos River Auth TX Pollutn Ctl Rev Adj TXU
          Elec Co Proj Ser C Rfdg (Var Rate Cpn).......... 5.750    05/01/36       1,570,410
 2,000    Harris Cnty, TX Hlth Fac Dev Corp Hosp Rev
          Hermann Hosp Proj (Prerefunded @ 10/01/04) (MBIA
          Insd)........................................... 6.375    10/01/24       2,117,360
</Table>

 10                                            See Notes to Financial Statements


YOUR TRUST'S INVESTMENTS

October 31, 2003

<Table>
<Caption>
PAR
AMOUNT                                                                            MARKET
(000)     DESCRIPTION                                      COUPON   MATURITY       VALUE
                                                                   
          TEXAS (CONTINUED)
$1,000    Mesquite, TX Hlth Fac Dev Corp Retirement Fac
          Christian Care Ctr Ser A........................ 7.625%   02/15/28   $   1,038,570
 1,500    Metropolitan Hlth Fac Dev Corp TX Wilson N Jones
          Mem Hosp Proj................................... 7.250    01/01/31       1,389,345
 2,000    Texas St Wtr Fin Assistance..................... 5.500    08/01/35       2,104,320
                                                                               -------------
                                                                                  12,930,465
                                                                               -------------
          UTAH  0.1%
   215    Utah St Hsg Fin Agy Single Family Mtg Sr Issue
          Ser B-2 (FHA/VA Gtd)............................ 6.500    07/01/15         216,481
                                                                               -------------

          VIRGINIA  4.1%
 2,000    Fairfax Cnty, VA Ctfs Partn..................... 5.300    04/15/23       2,060,660
 1,500    Henrico Cnty, VA Indl Dev Auth Pub Fac Lease Rev
          Henrico Cnty Regl Jail Proj (Prerefunded @
          08/01/05)....................................... 6.500    08/01/10       1,665,915
 1,380    Richmond, VA Indl Dev Auth Govt Fac Rev Bonds
          (AMBAC Insd).................................... 5.000    07/15/14       1,506,049
 1,715    Richmond, VA Indl Dev Auth Govt Fac Rev Bonds
          (AMBAC Insd).................................... 5.000    07/15/17       1,859,557
                                                                               -------------
                                                                                   7,092,181
                                                                               -------------
          WASHINGTON  2.2%
   700    Quinault Indian Nation, WA Quinault Beach Ser A
          Rfdg & Impt (ACA Insd).......................... 5.800    12/01/15         741,251
 3,000    Spokane, WA Pub Fac Dist Hotel Motel and Sales
          Use Tax (MBIA Insd)............................. 5.250    09/01/33       3,103,140
                                                                               -------------
                                                                                   3,844,391
                                                                               -------------
          WEST VIRGINIA  3.4%
   500    Harrison Cnty, WV Cnty Cmnty Solid Waste Disp
          Rev West PA Pwr Co Ser C (AMBAC Insd)........... 6.750    08/01/24         530,160
 3,000    Marshall Cnty, WV Pollutn Ctl Rev OH Pwr Co Proj
          Ser C (MBIA Insd)............................... 6.850    06/01/22       3,114,150
 2,215    West Virginia St Wtr Dev Auth Wtr Dev Rev Ln Pgm
          II Ser A (Prerefunded @ 11/01/04) (FSA Insd).... 6.750    11/01/33       2,385,156
                                                                               -------------
                                                                                   6,029,466
                                                                               -------------
          WISCONSIN  1.6%
 2,490    Wisconsin St Hlth & Ed Fac Auth Rev Bellin Mem
          Hosp (AMBAC Insd)............................... 6.625    02/15/08       2,834,990
                                                                               -------------
</Table>

See Notes to Financial Statements                                             11


YOUR TRUST'S INVESTMENTS

October 31, 2003

<Table>
<Caption>
PAR
AMOUNT                                                                            MARKET
(000)     DESCRIPTION                                      COUPON   MATURITY       VALUE
                                                                   
          PUERTO RICO  5.6%
$8,000    Puerto Rico Comwlth Hwy & Trans Auth Hwy Rev Ser
          Y Rfdg (FSA Insd)............................... 6.250%   07/01/21   $   9,753,840
                                                                               -------------

TOTAL LONG-TERM INVESTMENTS  160.8%
  (Cost $266,128,505).......................................................     282,043,820

SHORT-TERM INVESTMENTS  2.3%
  (Cost $4,000,000).........................................................       4,000,000
                                                                               -------------

TOTAL INVESTMENTS  163.1%
  (Cost $270,128,505).......................................................     286,043,820
OTHER ASSETS IN EXCESS OF LIABILITIES  2.5%.................................       4,362,537
PREFERRED SHARES (INCLUDING ACCRUED DISTRIBUTIONS)  (65.6%).................    (115,011,335)
                                                                               -------------

NET ASSETS APPLICABLE TO COMMON SHARES  100.0%..............................   $ 175,395,022
                                                                               =============
</Table>

*   Zero coupon bond

(a) All or a portion of these securities have been physically segregated in
    connection with open futures contracts.

(b) Security purchased on a when-issued or delayed delivery basis.

ACA--American Capital Access

AMBAC--AMBAC Indemnity Corp.

Connie Lee--Connie Lee Insurance Co.

FGIC--Financial Guaranty Insurance Co.

FHA/VA--Federal Housing Administration/Department of Veterans Affairs

FSA--Financial Security Assurance Inc.

GNMA--Government National Mortgage Association

MBIA--Municipal Bond Investors Assurance Corp.

XLCA--XL Capital Assurance Inc.

 12                                            See Notes to Financial Statements


FINANCIAL STATEMENTS
Statement of Assets and Liabilities
October 31, 2003

<Table>
                                                           
ASSETS:
Total Investments (Cost $270,128,505).......................  $286,043,820
Cash........................................................       381,036
Receivables:
  Interest..................................................     4,536,468
  Investments Sold..........................................     4,335,230
Other.......................................................         5,396
                                                              ------------
    Total Assets............................................   295,301,950
                                                              ------------
LIABILITIES:
Payables:
  Investments Purchased.....................................     4,340,599
  Investment Advisory Fee...................................       147,529
  Variation Margin on Futures...............................        86,797
  Income Distributions--Common Shares.......................        34,839
  Administrative Fee........................................        12,294
  Affiliates................................................         9,085
Trustees' Deferred Compensation and Retirement Plans........       184,652
Accrued Expenses............................................        79,798
                                                              ------------
    Total Liabilities.......................................     4,895,593
Preferred Shares (including accrued distributions)..........   115,011,335
                                                              ------------
NET ASSETS APPLICABLE TO COMMON SHARES......................  $175,395,022
                                                              ============
NET ASSET VALUE PER COMMON SHARE
($175,395,022 divided by 11,681,272 shares outstanding).....  $      15.02
                                                              ============
NET ASSETS CONSIST OF:
Common Shares ($.01 par value with an unlimited number of
  shares authorized, 11,681,272 shares issued and
  outstanding)..............................................  $    116,813
Paid in Surplus.............................................   159,178,268
Net Unrealized Appreciation.................................    14,892,156
Accumulated Undistributed Net Investment Income.............     1,601,153
Accumulated Net Realized Loss...............................      (393,368)
                                                              ------------
NET ASSETS APPLICABLE TO COMMON SHARES......................  $175,395,022
                                                              ============
PREFERRED SHARES ($.01 par value, authorized 100,000,000
  shares, 4,600 issued with liquidation preference of
  $25,000 per share)........................................  $115,000,000
                                                              ------------
NET ASSETS INCLUDING PREFERRED SHARES.......................  $290,395,022
                                                              ============
</Table>

See Notes to Financial Statements                                             13


Statement of Operations
For the Year Ended October 31, 2003

<Table>
                                                           
INVESTMENT INCOME:
Interest....................................................  $15,093,167
                                                              -----------
EXPENSES:
Investment Advisory Fee.....................................    1,748,973
Preferred Share Maintenance.................................      339,002
Administrative Fee..........................................      145,750
Trustees' Fees and Related Expenses.........................       56,436
Legal.......................................................       35,696
Custody.....................................................       18,364
Other.......................................................      204,921
                                                              -----------
      Total Expenses........................................    2,549,142
                                                              -----------
NET INVESTMENT INCOME.......................................  $12,544,025
                                                              ===========
REALIZED AND UNREALIZED GAIN/LOSS:
Realized Gain/Loss:
  Investments...............................................  $ 4,280,274
  Futures...................................................     (398,820)
                                                              -----------
Net Realized Gain...........................................    3,881,454
                                                              -----------
Unrealized Appreciation/Depreciation:
  Beginning of the Period...................................   18,554,996
  End of the Period:
    Investments.............................................   15,915,315
    Futures.................................................   (1,023,159)
                                                              -----------
                                                               14,892,156
                                                              -----------
Net Unrealized Depreciation During the Period...............   (3,662,840)
                                                              -----------
NET REALIZED AND UNREALIZED GAIN............................  $   218,614
                                                              ===========
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS.....................  $(1,144,837)
                                                              ===========
NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM
  OPERATIONS................................................  $11,617,802
                                                              ===========
</Table>

 14                                            See Notes to Financial Statements


Statements of Changes in Net Assets

<Table>
<Caption>
                                                               YEAR ENDED         YEAR ENDED
                                                            OCTOBER 31, 2003   OCTOBER 31, 2002
                                                            -----------------------------------
                                                                         
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income.....................................    $ 12,544,025       $ 12,773,766
Net Realized Gain.........................................       3,881,454          2,378,157
Net Unrealized Depreciation During the Period.............      (3,662,840)        (1,686,633)
Distributions to Preferred Shareholders:
  Net Investment Income...................................      (1,144,837)        (1,548,593)
                                                              ------------       ------------
Change in Net Assets Applicable to Common Shares from
  Operations..............................................      11,617,802         11,916,697
Distributions to Common Shareholders:
  Net Investment Income...................................     (11,534,733)       (10,775,468)
                                                              ------------       ------------

NET CHANGE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM
  INVESTMENT ACTIVITIES...................................          83,069          1,141,229
NET ASSETS APPLICABLE TO COMMON SHARES:
Beginning of the Period...................................     175,311,953        174,170,724
                                                              ------------       ------------
End of the Period (Including accumulated undistributed net
  investment income of $1,601,153 and $1,757,707,
  respectively)...........................................    $175,395,022       $175,311,953
                                                              ============       ============
</Table>

See Notes to Financial Statements                                             15


Financial Highlights
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE
TRUST OUTSTANDING THROUGHOUT THE PERIODS INDICATED.

<Table>
<Caption>
                                                              ------------------------------
                                                               2003      2002 (a)     2001
                                                              ------------------------------
                                                                            
NET ASSET VALUE, BEGINNING OF THE PERIOD....................  $ 15.01    $ 14.91     $ 13.77
                                                              -------    -------     -------
  Net Investment Income.....................................     1.08       1.09        1.10
  Net Realized and Unrealized Gain/Loss.....................      .02        .06        1.11
  Common Share Equivalent of Distributions Paid to Preferred
    Shareholders:
    Net Investment Income...................................     (.10)      (.13)       (.31)
    Net Realized Gain.......................................      -0-        -0-         -0-
                                                              -------    -------     -------
Total from Investment Operations............................     1.00       1.02        1.90
Distributions Paid to Common Shareholders:
  Net Investment Income.....................................     (.99)      (.92)       (.76)
  Net Realized Gain.........................................      -0-        -0-         -0-
                                                              -------    -------     -------
NET ASSET VALUE, END OF THE PERIOD..........................  $ 15.02    $ 15.01     $ 14.91
                                                              =======    =======     =======

Common Share Market Price at End of the Period..............  $ 14.20    $ 13.80     $ 13.36
Total Return (b)............................................   10.27%     10.36%      20.07%
Net Assets at End of the Period (In millions)...............  $ 175.4    $ 175.3     $ 174.2
Ratio of Expenses to Average Net Assets Applicable to Common
  Shares (c)................................................    1.44%      1.55%       1.76%
Ratio of Net Investment Income to Average Net Assets
  Applicable to Common Shares (c)...........................    7.11%      7.44%       7.66%
Portfolio Turnover..........................................      35%        44%         45%

SUPPLEMENTAL RATIOS:
Ratio of Expenses to Average Net Assets Including Preferred
  Shares (c)................................................     .87%       .93%       1.04%
Ratio of Net Investment Income to Average Net Assets
  Applicable to Common Shares (d)...........................    6.46%      6.54%       5.48%

SENIOR SECURITIES:
Total Preferred Shares Outstanding..........................    4,600      4,600       4,600
Asset Coverage Per Preferred Share (e)......................  $63,132    $63,114     $62,863
Involuntary Liquidating Preference Per Preferred Share......  $25,000    $25,000     $25,000
Average Market Value Per Preferred Share....................  $25,000    $25,000     $25,000
</Table>

(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 period 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 by .03%. Per share, ratios and
   supplemental data for the 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.

 16


<Table>
<Caption>
YEAR ENDED OCTOBER 31,
- -------------------------------------------------------------------------------
       2000       1999       1998       1997       1996       1995       1994
- -------------------------------------------------------------------------------
                                                  
     $  13.28   $  15.08   $  14.51   $  13.88   $  13.72   $  12.20   $  15.58
     --------   --------   --------   --------   --------   --------   --------
         1.13       1.12       1.12       1.13       1.14       1.15       1.11
          .54      (1.82)       .57        .60        .12       1.55      (3.28)
         (.40)      (.32)      (.34)      (.35)      (.35)      (.38)      (.25)
          -0-        -0-        -0-        -0-        -0-        -0-       (.01)
     --------   --------   --------   --------   --------   --------   --------
         1.27      (1.02)      1.35       1.38        .91       2.32      (2.43)
         (.78)      (.78)      (.78)      (.75)      (.75)      (.80)      (.90)
          -0-        -0-        -0-        -0-        -0-        -0-        .05
     --------   --------   --------   --------   --------   --------   --------
     $  13.77   $  13.28   $  15.08   $  14.51   $  13.88   $  13.72   $  12.20
     ========   ========   ========   ========   ========   ========   ========

     $11.8125   $11.5625   $14.0625   $12.6875   $ 11.625   $ 11.375   $  10.50
        9.19%    -12.84%     17.23%     16.02%      8.98%     16.07%    -24.59%
     $  160.8   $  155.1   $  176.1   $  169.5   $  162.1   $  160.2   $  142.5
        1.85%      1.79%      1.79%      1.83%      1.90%      1.94%      1.82%
        8.44%      7.68%      7.54%      8.04%      8.31%      8.85%      7.95%
          22%        25%        13%        23%        37%        58%       115%

        1.06%      1.06%      1.08%      1.08%      1.10%      1.10%      1.06%
        5.48%      5.50%      5.20%      5.56%      5.77%      5.88%      6.11%

        4,600      4,600      2,300      2,300      2,300      2,300      2,300
     $ 59,963   $ 58,717   $126,569   $123,694   $120,481   $119,666   $111,967
     $ 25,000   $ 25,000   $ 50,000   $ 50,000   $ 50,000   $ 50,000   $ 50,000
     $ 25,000   $ 25,000   $ 50,000   $ 50,000   $ 50,000   $ 50,000   $ 50,000
</Table>

See Notes to Financial Statements                                             17


NOTES TO
FINANCIAL STATEMENTS

October 31, 2003

1. SIGNIFICANT ACCOUNTING POLICIES

Van Kampen Municipal Opportunity Trust II (the "Trust") is registered as a
diversified, closed-end management investment company under the Investment
Company Act of 1940 (the "1940 Act"), 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 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.
Futures contracts are valued at the settlement price established each day on the
exchange on which they are traded. 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
segregate assets with the custodian having an aggregate value at least equal to
the amount of the when-issued or delayed delivery purchase commitments until
payment is made. At October 31, 2003, the Trust had $4,340,599 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.

D. FEDERAL INCOME TAXES It is the Trust's policy to comply with the requirements
of the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no provision for federal income taxes is required.

    The Trust intends to utilize provisions of the federal income tax laws which
allow it to carry a realized capital loss forward for eight years following the
year of the loss and offset such losses against any future realized capital
gains. At October 31, 2003, the Trust had an

 18


NOTES TO
FINANCIAL STATEMENTS

October 31, 2003

accumulated capital loss carryforward for tax purposes of $1,415,668, which will
expire between October 31, 2004 and October 31, 2008. Of this amount, $343,729
will expire on October 31, 2004.

    At October 31, 2003 the cost and related gross unrealized appreciation and
depreciation are as follows:

<Table>
                                                             
Cost of investments for tax purposes........................    $269,895,421
                                                                ============
Gross tax unrealized appreciation...........................    $ 16,709,770
Gross tax unrealized depreciation...........................        (561,371)
                                                                ------------
Net tax unrealized appreciation on investments..............    $ 16,148,399
                                                                ============
</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 and a portion of futures gains, which are
included as ordinary income for tax purposes.

    The tax character of distributions paid for the years ended October 31, 2003
and 2002 was as follows:

<Table>
<Caption>
                                                               2003        2002
                                                                   
Distributions paid from:
  Ordinary income...........................................  $12,965    $117,168
  Long-term capital gain....................................      -0-         -0-
                                                              -------    --------
                                                              $12,965    $117,168
                                                              =======    ========
</Table>

    Due to inherent differences in the recognition of income, expenses and
realized gain/ losses under accounting principles generally accepted in the
United States of America and federal income tax purposes, permanent differences
between book and tax basis reporting have been identified and appropriately
reclassified on the Statement of Assets and Liabilities. Permanent book and tax
differences relating to the capital loss carryforward expiring in the current
year totaling $11,045,981 were reclassified from accumulated net realized loss
to paid in surplus. Additionally, permanent book and tax differences relating to
book to tax accretion differences totaling $21,009 have been reclassified from
accumulated undistributed net investment income to accumulated net realized
loss.

    As of October 31, 2003, the components of distributable earnings on a tax
basis were as follows:

<Table>
                                                             
Undistributed ordinary income...............................    $132,494
</Table>

    Net realized gains and losses may differ for financial reporting and tax
purposes as a result of gains or losses recognized for tax purposes on open
futures transactions on October 31, 2003 and the deferral of losses resulting
from wash sales transactions.

                                                                              19


NOTES TO
FINANCIAL STATEMENTS

October 31, 2003

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 Investments Inc. or its affiliates
(collectively "Van Kampen"), the 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 year ended October 31, 2003, the Trust recognized expenses of
approximately $19,600 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 year ended October
31, 2003, the Trust recognized expenses of approximately $37,600 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 has implemented 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.

    At October 31, 2003, Van Kampen owned 6,700 common shares of the Trust.

3. INVESTMENT TRANSACTIONS

During the period, the cost of purchases and proceeds from sales of investments,
excluding short-term investments, were $99,126,018 and $102,510,669,
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.

    In order to seek to manage the interest rate exposure of the Trust's
portfolio in a changing interest rate environment, the Trust may purchase or
sell financial futures contracts or engage 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 or for risk management
purposes, but may also enter into these transactions to generate additional
income. 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. Upon disposition, a

 20


NOTES TO
FINANCIAL STATEMENTS

October 31, 2003

realized gain or loss is recognized accordingly, except when exercising a call
option contract or taking delivery of a security underlying a futures contract.
In this instance, the recognition of gain or loss is postponed until the
disposal of the security underlying the futures contract.

    During the period, the Trust invested in futures contracts, a type of
derivative. 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 exchange traded futures on U.S. Treasury Bonds and Notes
and typically closes the contract prior to delivery date. These contracts are
generally used to manage the Trust's effective maturity and duration. Upon
entering into futures contracts, the Trust maintains an amount of cash or liquid
securities with a value equal to a percentage of the contract amount with either
a future commission merchant pursuant to rules and regulations promulgated under
the 1940 Act, as amended, or with its custodian in an account in the broker's
name. This amount is known as initial margin. During the period the futures
contract is open, payments are received from or made to the broker based upon
changes in the value of the contract (the variation margin). The risk of loss
associated with a futures contract is in excess of the variation margin
reflected on the Statement of Assets and Liabilities.

    Transactions in futures contracts for the year ended October 31, 2003, were
as follows:

<Table>
<Caption>
                                                                CONTRACTS
                                                             
Outstanding at October 31, 2002.............................        313
Futures Opened..............................................      1,946
Futures Closed..............................................     (1,836)
                                                                 ------
Outstanding at October 31, 2003.............................        423
                                                                 ======
</Table>

    The futures contracts outstanding as of October 31, 2003 and the
descriptions and unrealized appreciation/depreciation are as follows:

<Table>
<Caption>
                                                                           UNREALIZED
                                                              CONTRACTS   DEPRECIATION
                                                                    
Short Contracts:
U.S. Treasury Notes 10-Year Futures
  December 2003 (Current Notional Value of $112,297 per
    contract)...............................................      82         (273,254)
U.S. Treasury Notes 5-Year Futures
  December 2003 (Current Notional Value of $111,813 per
    contract)...............................................     341         (749,905)
                                                                 ---      -----------
                                                                 423      $(1,023,159)
                                                                 ===      ===========
</Table>

5. PREFERRED SHARES

As of October 31, 2003, the Trust has outstanding 4,600 Auction Preferred Shares
("APS") in three series. Series A and B each contain 1,600 shares while Series C
contains 1,400 shares. Dividends are cumulative and the dividend rates are
generally reset every 7 days through an auction process. The average rate in
effect on October 31, 2003 was .885%. During the year ended October 31, 2003,
the rates ranged from .500% to 1.800%.

                                                                              21


NOTES TO
FINANCIAL STATEMENTS

October 31, 2003

    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.

 22


REPORT OF INDEPENDENT AUDITORS

To the Board of Trustees and Shareholders of Van Kampen Municipal Opportunity
Trust II

We have audited the accompanying statement of assets and liabilities of Van
Kampen Municipal Opportunity Trust II (the "Trust"), including the portfolio of
investments, as of October 31, 2003, the related statement of operations for the
year then ended, the statements of changes in net assets for each of the two
years in the period then ended, and the financial highlights for each of the
four years in the period then ended. These financial statements and financial
highlights are the responsibility of the Trust's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits. The Trust's financial highlights for the periods ended
prior to October 31, 2000, were audited by other auditors whose report, dated
December 6, 1999, expressed an unqualified opinion on those financial
highlights.

    We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 2003, by correspondence with the Trust's
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.

    In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of Van
Kampen Municipal Opportunity Trust II as of October 31, 2003, the results of its
operations, the changes in its net assets and the financial highlights for the
respective stated periods, in conformity with accounting principles generally
accepted in the United States of America.

DELOITTE & TOUCHE LLP
Chicago, Illinois
December 8, 2003

                                                                              23


DIVIDEND REINVESTMENT PLAN

    The Trust offers a dividend reinvestment plan (the "Plan") pursuant to which
Common Shareholders may elect to have dividends and capital gains distributions
reinvested in Common Shares of the Trust. The Trust declares dividends out of
net investment income, and will distribute annually net realized capital gains,
if any. Common Shareholders may join or withdraw from the Plan at any time.

    If you decide to participate in the Plan, State Street Bank and Trust
Company, as your Plan Agent, will automatically invest your dividends and
capital gains distributions in Common Shares of the Trust for your account.

HOW TO PARTICIPATE

    If you wish to participate and your shares are held in your own name, call
1-800-341-2929 for more information and a Plan brochure. If your shares are held
in the name of a brokerage firm, bank, or other nominee, you should contact your
nominee to see if it would participate in the Plan on your behalf. If you wish
to participate in the Plan, but your brokerage firm, bank or nominee is unable
to participate on your behalf, you should request that your shares be
re-registered in your own name which will enable your participation in the Plan.

HOW THE PLAN WORKS

    Participants in the Plan will receive the equivalent in Common Shares valued
on the valuation date, generally at the lower of market price or net asset
value, except as specified below. The valuation date will be the dividend or
distribution payment date or, if that date is not a trading day on the national
securities exchange or market system on which the Common Shares are listed for
trading, the next preceding trading day. If the market price per Common Share on
the valuation date equals or exceeds net asset value per Common Share on that
date, the Trust will issue new Common Shares to participants valued at the
higher of net asset value or 95% of the market price on the valuation date. In
the foregoing situation, the Trust will not issue Common Shares under the Plan
below net asset value. If net asset value per Common Share on the valuation date
exceeds the market price per Common Share on that date, or if the Board of
Trustees should declare a dividend or capital gains distribution payable to the
Common Shareholders only in cash, participants in the Plan will be deemed to
have elected to receive Common Shares from the Trust valued at the market price
on that date. Accordingly, in this circumstance, the Plan Agent will, as agent
for the participants, buy the Trust's Common Shares in the open market for the
participants' accounts on or shortly after the payment date. If, before the Plan
Agent has completed its purchases, the market price exceeds the net asset value
per share of the Common Shares, the average per share purchase price paid by the
Plan Agent may exceed the net asset value of the Trust's Common Shares,
resulting in the acquisition of fewer Common

 24


Shares than if the dividend or distribution had been paid in Common Shares
issued by the Trust. All reinvestments are in full and fractional Common Shares
and are carried to three decimal places.

    Experience under the Plan may indicate that changes are desirable.
Accordingly, the Trust reserves the right to amend or terminate the Plan as
applied to any dividend or distribution paid subsequent to written notice of the
changes sent to all Common Shareholders of the Trust at least 90 days before the
record date for the dividend or distribution. The Plan also may be amended or
terminated by the Plan Agent by at least 90 days written notice to all Common
Shareholders of the Trust.

COSTS OF THE PLAN

    The Plan Agent's fees for the handling of the reinvestment of dividends and
distributions will be paid by the Trust. However, each participant will pay a
pro rata share of brokerage commissions incurred with respect to the Plan
Agent's open market purchases in connection with the reinvestment of dividends
and distributions. No other charges will be made to participants for reinvesting
dividends or capital gains distributions, except for certain brokerage
commissions, as described above.

TAX IMPLICATIONS

    You will receive tax information annually for your personal records and to
help you prepare your federal income tax return. The automatic reinvestment of
dividends and capital gains distributions does not relieve you of any income tax
which may be payable on dividends or distributions.

RIGHT TO WITHDRAW

    Plan participants may withdraw at any time by calling 1-800-341-2929 or by
writing State Street Bank and Trust Company, P.O. Box 8200, Boston, MA
02266-8200. If you withdraw, you will receive, without charge, a share
certificate issued in your name for all full Common Shares credited to your
account under the Plan and a cash payment will be made for any fractional Common
Share credited to your account under the Plan. You may again elect to
participate in the Plan at any time by calling 1-800-341-2929 or writing to the
Trust at:

                              Van Kampen Funds Inc.
                              Attn: Closed-End Funds
                                2800 Post Oak Blvd.
                                 Houston, TX 77056

                                                                              25


BOARD OF DIRECTORS AND IMPORTANT ADDRESSES
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST II

BOARD OF TRUSTEES

DAVID C. ARCH
J. MILES BRANAGAN
JERRY D. CHOATE
ROD DAMMEYER
LINDA HUTTON HEAGY
R. CRAIG KENNEDY
HOWARD J KERR
THEODORE A. MYERS
MITCHELL M. MERIN*
JACK E. NELSON
RICHARD F. POWERS, III*
HUGO F. SONNENSCHEIN
WAYNE W. WHALEN* - Chairman
SUZANNE H. WOOLSEY

INVESTMENT ADVISER

VAN KAMPEN INVESTMENT ADVISORY CROP.
1 Parkview Plaza
P.O. Box 5555
Oakbrook Terrace, Illinois 60181-5555

DISTRIBUTOR

VAN KAMPEN FUNDS INC.
1 Parkview Plaza
P.O. Box 5555
Oakbrook Terrace, Illinois 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

 For federal income tax purposes, the following information is furnished with
 respect to the distributions paid by the Trust during its taxable year ended
 October 31, 2003. The Trust designated 99.9% of the income distributions as a
 tax-exempt income distribution. In January, the Trust provides tax information
 to shareholders for the preceding calendar year.

*   "Interested persons" of the Fund, as defined in the Investment Company Act
    of 1940, as amended.
 26


RESULTS OF
SHAREHOLDER VOTES

The Annual Meeting of Shareholders of the Trust was held on June 24, 2003, where
shareholders voted on the election of trustees.

With regard to the election of the following trustees by common shareholders of
the Trust:

<Table>
<Caption>
                                                                     # OF SHARES
                                                            ------------------------------
                                                             IN FAVOR             WITHHELD
- ------------------------------------------------------------------------------------------
                                                                            
David C. Arch.............................................  10,162,757            104,547
Jerry D. Choate...........................................  10,158,525            108,779
Linda Hutton Heagy........................................  10,164,316            102,988
R. Craig Kennedy..........................................  10,164,820            102,484
Howard J Kerr.............................................  10,154,957            112,347
Suzanne H. Woolsey........................................  10,164,909            102,395
</Table>

The other trustees of the Trust whose terms did not expire in 2003 are Rod
Dammeyer, Theodore A. Myers, Richard F. Powers, III, Hugo F. Sonnenschein and
Wayne W. Whalen.

With regard to the vote for the amendment to the Declaration of Trust by the
common shareholders of the Trust, 9,886,400 shares voted in favor of the
proposal, 236,144 shares voted against and 144,760 shares abstained.

                                                                              27


TRUSTEES AND OFFICERS

The business and affairs of the Trust are managed under the direction of the
Trust's Board of Trustees and the Trust's officers appointed by the Board of
Trustees. The tables below list the trustees and executive officers of the Trust
and their principal occupations during the last five years, other directorships
held by trustees and their affiliations, if any, with Van Kampen Investments
Inc. ("Van Kampen Investments"), Van Kampen Investment Advisory Corp. ("Advisory
Corp."), Van Kampen Asset Management Inc. ("Asset Management"), Van Kampen Funds
Inc. (the "Distributor"), Van Kampen Advisors Inc., Van Kampen Exchange Corp.
and Van Kampen Investor Services Inc. ("Investor Services"). Advisory Corp. and
Asset Management sometimes are referred to herein collectively as the
"Advisers." The term "Fund Complex" includes each of the investment companies
advised by the Advisers or their affiliates as of the date of this Statement of
Additional Information. Trustees serve until reaching their retirement age or
until their successors are duly elected and qualified. Officers are annually
elected by the trustees.

INDEPENDENT TRUSTEES

<Table>
<Caption>
                                                                                  NUMBER OF
                                            TERM OF                                FUNDS IN
                                           OFFICE AND                                FUND
                              POSITION(S)  LENGTH OF                               COMPLEX
NAME, AGE AND ADDRESS          HELD WITH      TIME     PRINCIPAL OCCUPATION(S)     OVERSEEN    OTHER DIRECTORSHIPS
OF INDEPENDENT TRUSTEE           TRUST       SERVED    DURING PAST 5 YEARS        BY TRUSTEE   HELD BY TRUSTEE
                                                                                
David C. Arch (58)            Trustee      Trustee     Chairman and Chief             90       Trustee/Director/Managing
Blistex Inc.                               since 1993  Executive Officer of                    General Partner of funds
1800 Swift Drive                                       Blistex Inc., a consumer                in the Fund Complex.
Oak Brook, IL 60523                                    health care products
                                                       manufacturer. Former
                                                       Director of the World
                                                       Presidents
                                                       Organization-Chicago
                                                       Chapter. Director of the
                                                       Heartland Alliance, a
                                                       nonprofit organization
                                                       serving human needs based
                                                       in Chicago.

J. Miles Branagan (71)        Trustee      Trustee     Private investor.              88       Trustee/Director/Managing
1632 Morning Mountain Road                 since 2003  Co-founder, and prior to                General Partner of funds
Raleigh, NC 27614                                      August 1996, Chairman,                  in the Fund Complex.
                                                       Chief Executive Officer
                                                       and President, MDT
                                                       Corporation (now known as
                                                       Getinge/Castle, Inc., a
                                                       subsidiary of Getinge
                                                       Industrier AB), a company
                                                       which develops,
                                                       manufactures, markets and
                                                       services medical and
                                                       scientific equipment.
</Table>

 28


<Table>
<Caption>
                                                                                  NUMBER OF
                                            TERM OF                                FUNDS IN
                                           OFFICE AND                                FUND
                              POSITION(S)  LENGTH OF                               COMPLEX
NAME, AGE AND ADDRESS          HELD WITH      TIME     PRINCIPAL OCCUPATION(S)     OVERSEEN    OTHER DIRECTORSHIPS
OF INDEPENDENT TRUSTEE           TRUST       SERVED    DURING PAST 5 YEARS        BY TRUSTEE   HELD BY TRUSTEE
                                                                                

Jerry D. Choate (65)          Trustee      Trustee     Prior to January 1999,         88       Trustee/Director/Managing
33971 Selva Road                           since 2003  Chairman and Chief                      General Partner of funds
Suite 130                                              Executive Officer of the                in the Fund Complex.
Dana Point, CA 92629                                   Allstate Corporation                    Director of Amgen Inc., a
                                                       ("Allstate") and Allstate               biotechnological company,
                                                       Insurance Company. Prior                and Director of Valero
                                                       to January 1995,                        Energy Corporation, an
                                                       President and Chief                     independent refining
                                                       Executive Officer of                    company.
                                                       Allstate. Prior to August
                                                       1994, various management
                                                       positions at Allstate.

Rod Dammeyer (63)             Trustee      Trustee     President of CAC, llc., a      90       Trustee/Director/Managing
CAC, llc.                                  since 1993  private company offering                General Partner of funds
4350 LaJolla Village Drive                             capital investment and                  in the Fund Complex.
Suite 980                                              management advisory                     Director of TeleTech
San Diego, CA 92122-6223                               services. Prior to July                 Holdings Inc.,
                                                       2000, Managing Partner of               Stericycle, Inc.,
                                                       Equity Group Corporate                  TheraSense, Inc., GATX
                                                       Investment (EGI), a                     Corporation, Arris Group,
                                                       company that makes                      Inc. and Trustee of the
                                                       private investments in                  University of Chicago
                                                       other companies.                        Hospitals and Health
                                                                                               Systems. Prior to May
                                                                                               2002, Director of
                                                                                               Peregrine Systems Inc.
                                                                                               Prior to February 2001,
                                                                                               Vice Chairman and
                                                                                               Director of Anixter
                                                                                               International, Inc. and
                                                                                               IMC Global Inc. Prior to
                                                                                               July 2000, Director of
                                                                                               Allied Riser
                                                                                               Communications Corp.,
                                                                                               Matria Healthcare Inc.,
                                                                                               Transmedia Networks,
                                                                                               Inc., CNA Surety, Corp.
                                                                                               and Grupo Azcarero Mexico
                                                                                               (GAM). Prior to April
                                                                                               1999, Director of Metal
                                                                                               Management, Inc.
</Table>

                                                                              29


<Table>
<Caption>
                                                                                  NUMBER OF
                                            TERM OF                                FUNDS IN
                                           OFFICE AND                                FUND
                              POSITION(S)  LENGTH OF                               COMPLEX
NAME, AGE AND ADDRESS          HELD WITH      TIME     PRINCIPAL OCCUPATION(S)     OVERSEEN    OTHER DIRECTORSHIPS
OF INDEPENDENT TRUSTEE           TRUST       SERVED    DURING PAST 5 YEARS        BY TRUSTEE   HELD BY TRUSTEE
                                                                                

Linda Hutton Heagy (55)       Trustee      Trustee     Managing Partner of            88       Trustee/Director/Managing
Heidrick & Struggles                       since 2003  Heidrick & Struggles, an                General Partner of funds
233 South Wacker Drive                                 executive search firm.                  in the Fund Complex.
Suite 7000                                             Trustee on the University
Chicago, IL 60606                                      of Chicago Hospitals
                                                       Board, Vice Chair of the
                                                       Board of the YMCA of
                                                       Metropolitan Chicago and
                                                       a member of the Women's
                                                       Board of the University
                                                       of Chicago. Prior to
                                                       1997, Partner of Ray &
                                                       Berndtson, Inc., an
                                                       executive recruiting
                                                       firm. Prior to 1996,
                                                       Trustee of The
                                                       International House
                                                       Board, a fellowship and
                                                       housing organization for
                                                       international graduate
                                                       students. Prior to 1995,
                                                       Executive Vice President
                                                       of ABN AMRO, N.A., a bank
                                                       holding company. Prior to
                                                       1992, Executive Vice
                                                       President of La Salle
                                                       National Bank.

R. Craig Kennedy (51)         Trustee      Trustee     Director and President of      88       Trustee/Director/Managing
11 DuPont Circle, N.W.                     since 2003  the German Marshall Fund                General Partner of funds
Washington, D.C. 20016                                 of the United States, an                in the Fund Complex.
                                                       independent U.S.
                                                       foundation created to
                                                       deepen understanding,
                                                       promote collaboration and
                                                       stimulate exchanges of
                                                       practical experience
                                                       between Americans and
                                                       Europeans. Formerly,
                                                       advisor to the Dennis
                                                       Trading Group Inc., a
                                                       managed futures and
                                                       option company that
                                                       invests money for
                                                       individuals and
                                                       institutions. Prior to
                                                       1992, President and Chief
                                                       Executive Officer,
                                                       Director and member of
                                                       the Investment Committee
                                                       of the Joyce Foundation,
                                                       a private foundation.

Howard J Kerr (68)            Trustee      Trustee     Prior to 1998, President       90       Trustee/Director/Managing
736 North Western Avenue                   since 1993  and Chief Executive                     General Partner of funds
P.O. Box 317                                           Officer of Pocklington                  in the Fund Complex.
Lake Forest, IL 60045                                  Corporation, Inc., an                   Director of the Lake
                                                       investment holding                      Forest Bank & Trust.
                                                       company. Director of the
                                                       Marrow Foundation.
</Table>

 30


<Table>
<Caption>
                                                                                  NUMBER OF
                                            TERM OF                                FUNDS IN
                                           OFFICE AND                                FUND
                              POSITION(S)  LENGTH OF                               COMPLEX
NAME, AGE AND ADDRESS          HELD WITH      TIME     PRINCIPAL OCCUPATION(S)     OVERSEEN    OTHER DIRECTORSHIPS
OF INDEPENDENT TRUSTEE           TRUST       SERVED    DURING PAST 5 YEARS        BY TRUSTEE   HELD BY TRUSTEE
                                                                                

Theodore A. Myers (73)        Trustee      Trustee     Financial consultant,          36       Director of Met Life
550 Washington Avenue                      since 1993  Trustee or Managing                     Investors (formerly knows
Glencoe, IL 60022                                      General Partner of other                as COVA Financial Life
                                                       funds in the Closed-End                 Insurance). Prior to
                                                       Fund Complex. Prior to                  1997, Director of McLouth
                                                       1998, Senior Financial                  Steel.
                                                       Advisor (and, prior to
                                                       1997, an Executive Vice
                                                       President, Chief
                                                       Financial Officer and
                                                       Director) of Qualitech
                                                       Steel Corporation, a
                                                       producer of high quality
                                                       engineered steels for
                                                       automotive,
                                                       transportation and
                                                       capital goods industries.
                                                       Prior to 1997, member of
                                                       the Arthur Andersen Chief
                                                       Financial Officers'
                                                       Advisory Committee.

Jack E. Nelson (67)           Trustee      Trustee     President of Nelson            88       Trustee/Director/Managing
423 Country Club Drive                     since 2003  Investment Planning                     General Partner of funds
Winter Park, FL 32789                                  Services, Inc., a                       in the Fund Complex.
                                                       financial planning
                                                       company and registered
                                                       investment adviser in the
                                                       State of Florida.
                                                       President of Nelson Ivest
                                                       Brokerage Services Inc.,
                                                       a member of the NASD,
                                                       Securities Investors
                                                       Protection Corp. and the
                                                       Municipal Securities
                                                       Rulemaking Board.
                                                       President of Nelson Sales
                                                       and Services Corporation,
                                                       a marketing and services
                                                       company to support
                                                       affiliated companies.

Hugo F. Sonnenschein (63)     Trustee      Trustee     President Emeritus and         90       Trustee/Director/Managing
1126 E. 59th Street                        since 1994  Honorary Trustee of the                 General Partner of funds
Chicago, IL 60637                                      University of Chicago and               in the Fund Complex.
                                                       the Adam Smith                          Director of Winston
                                                       Distinguished Service                   Laboratories, Inc.
                                                       Professor in the
                                                       Department of Economics
                                                       at the University of
                                                       Chicago. Prior to July
                                                       2000, President of the
                                                       University of Chicago.
                                                       Trustee of the University
                                                       of Rochester and a member
                                                       of its investment
                                                       committee. Member of the
                                                       National Academy of
                                                       Sciences, the American
                                                       Philosophical Society and
                                                       a fellow of the American
                                                       Academy of Arts and
                                                       Sciences.
</Table>

                                                                              31


<Table>
<Caption>
                                                                                  NUMBER OF
                                            TERM OF                                FUNDS IN
                                           OFFICE AND                                FUND
                              POSITION(S)  LENGTH OF                               COMPLEX
NAME, AGE AND ADDRESS          HELD WITH      TIME     PRINCIPAL OCCUPATION(S)     OVERSEEN    OTHER DIRECTORSHIPS
OF INDEPENDENT TRUSTEE           TRUST       SERVED    DURING PAST 5 YEARS        BY TRUSTEE   HELD BY TRUSTEE
                                                                                

Suzanne H. Woolsey (61)       Trustee      Trustee     Currently with Paladin         88       Trustee/Director/Managing
2101 Constitution Ave., N.W.               since 2003  Capital Group/Paladin                   General Partner of funds
Room 285                                               Homeland Security Fund.                 in the Fund Complex.
Washington, D.C. 20418                                 Previously Chief                        Director of Neurogen
                                                       Communications Officer of               Corporation, a
                                                       the National Academy of                 pharmaceutical company,
                                                       Sciences/National                       since January 1998.
                                                       Research Council, an
                                                       independent, federally
                                                       chartered policy
                                                       institution, since 2001
                                                       and Chief Operating
                                                       Officer from 1993 to
                                                       2001. Director of the
                                                       Institute for Defense
                                                       Analyses, a federally
                                                       funded research and
                                                       development center,
                                                       Director of the German
                                                       Marshall Fund of the
                                                       United States, and
                                                       Trustee of Colorado
                                                       College. Prior to 1993,
                                                       Executive Director of the
                                                       Commission on Behavioral
                                                       and Social Sciences and
                                                       Education at the National
                                                       Academy of
                                                       Sciences/National
                                                       Research Council. From
                                                       1980 through 1989,
                                                       Partner of Coopers &
                                                       Lybrand.
</Table>

 32


INTERESTED TRUSTEES*

<Table>
<Caption>
                                                                                  NUMBER OF
                                            TERM OF                                FUNDS IN
                                           OFFICE AND                                FUND
                              POSITION(S)  LENGTH OF                               COMPLEX
NAME, AGE AND ADDRESS          HELD WITH      TIME     PRINCIPAL OCCUPATION(S)     OVERSEEN    OTHER DIRECTORSHIPS
OF INTERESTED TRUSTEE            TRUST       SERVED    DURING PAST 5 YEARS        BY TRUSTEE   HELD BY TRUSTEE
                                                                                
Mitchell M. Merin* (50)       Trustee,     Trustee     President and Chief            88       Trustee/Director/Managing
1221 Avenue of the Americas   President    since 2002  Executive Officer of                    General Partner of funds
New York, NY 10020            and Chief                funds in the Fund                       in the Fund Complex.
                              Executive                Complex. Chairman,
                              Officer                  President, Chief
                                                       Executive Officer and
                                                       Director of the Advisers
                                                       and VK Advisors Inc.
                                                       since December 2002.
                                                       Chairman, President and
                                                       Chief Executive Officer
                                                       of Van Kampen Investments
                                                       since December 2002.
                                                       Director of Van Kampen
                                                       Investments since
                                                       December 1999. Chairman
                                                       and Director of Van
                                                       Kampen Funds Inc. since
                                                       December 2002. President,
                                                       Director and Chief
                                                       Operating Officer of
                                                       Morgan Stanley Investment
                                                       Management since December
                                                       1998. President and
                                                       Director since April 1997
                                                       and Chief Executive
                                                       Officer since June 1998
                                                       of Morgan Stanley
                                                       Investment Advisors Inc.
                                                       and Morgan Stanley
                                                       Services Company Inc.
                                                       Chairman, Chief Executive
                                                       Officer and Director of
                                                       Morgan Stanley
                                                       Distributors Inc. since
                                                       June 1998. Chairman since
                                                       June 1998, and Director
                                                       since January 1998 of
                                                       Morgan Stanley Trust.
                                                       Director of various
                                                       Morgan Stanley
                                                       subsidiaries. President
                                                       of the Morgan Stanley
                                                       Funds since May 1999.
                                                       Previously Chief
                                                       Executive Officer of Van
                                                       Kampen Funds Inc. from
                                                       December 2002 to July
                                                       2003, Chief Strategic
                                                       Officer of Morgan Stanley
                                                       Investment Advisors Inc.
                                                       and Morgan Stanley
                                                       Services Company Inc. and
                                                       Executive Vice President
                                                       of Morgan Stanley
                                                       Distributors Inc. from
                                                       April 1997 to June 1998.
                                                       Chief Executive Officer
                                                       from September 2002 to
                                                       April 2003 and Vice
                                                       President from May 1997
                                                       to April 1999 of the
                                                       Morgan Stanley Funds.
</Table>

                                                                              33


<Table>
<Caption>
                                                                                  NUMBER OF
                                            TERM OF                                FUNDS IN
                                           OFFICE AND                                FUND
                              POSITION(S)  LENGTH OF                               COMPLEX
NAME, AGE AND ADDRESS          HELD WITH      TIME     PRINCIPAL OCCUPATION(S)     OVERSEEN    OTHER DIRECTORSHIPS
OF INTERESTED TRUSTEE            TRUST       SERVED    DURING PAST 5 YEARS        BY TRUSTEE   HELD BY TRUSTEE
                                                                                

Richard F. Powers, III* (57)  Trustee      Trustee     Advisory Director of           90       Trustee/Director/Managing
1 Parkview Plaza                           since 1999  Morgan Stanley. Prior to                General Partner of funds
P.O. Box 5555                                          December 2002, Chairman,                in the Fund Complex.
Oakbrook Terrace, IL 60181                             Director, President,
                                                       Chief Executive Officer
                                                       and Managing Director of
                                                       Van Kampen Investments
                                                       and its investment
                                                       advisory, distribution
                                                       and other subsidiaries.
                                                       Prior to December 2002,
                                                       President and Chief
                                                       Executive Officer of
                                                       funds in the Fund
                                                       Complex. Prior to May
                                                       1998, Executive Vice
                                                       President and Director of
                                                       Marketing at Morgan
                                                       Stanley and Director of
                                                       Dean Witter, Discover &
                                                       Co. and Dean Witter
                                                       Realty. Prior to 1996,
                                                       Director of Dean Witter
                                                       Reynolds Inc.

Wayne W. Whalen* (64)         Trustee      Trustee     Partner in the law firm        90       Trustee/Director/Managing
333 West Wacker Drive                      since 1993  of Skadden, Arps, Slate,                General Partner of funds
Chicago, IL 60606                                      Meagher & Flom                          in the Fund Complex.
                                                       (Illinois), legal counsel
                                                       to funds in the Fund
                                                       Complex.
</Table>

*   Such trustee is an "interested person" (within the meaning of Section
    2(a)(19) of the 1940 Act). Mr. Whalen is an interested person of certain
    funds in the Fund Complex by reason of his firm currently acting as legal
    counsel to such funds in the Fund Complex. Messrs. Merin and Powers are
    interested persons of funds in the Fund Complex and the Advisers by reason
    of their current or former positions with Morgan Stanley or its affiliates.

 34


OFFICERS

<Table>
<Caption>
                                                        TERM OF
                                                       OFFICE AND
                                    POSITION(S)        LENGTH OF
NAME, AGE AND                        HELD WITH            TIME     PRINCIPAL OCCUPATION(S)
ADDRESS OF OFFICER                     TRUST             SERVED    DURING PAST 5 YEARS
                                                          
Stephen L. Boyd (63)          Vice President           Officer     Managing Director of Global Research Investment Management.
2800 Post Oak Blvd.                                    since 1998  Vice President of funds in the Fund Complex. Prior to
45th Floor                                                         December 2002, Chief Investment Officer of Van Kampen
Houston, TX 77056                                                  Investments and President and Chief Operations Officer of
                                                                   the Advisers and Van Kampen Advisors Inc. Prior to May 2002,
                                                                   Executive Vice President and Chief Investment Officer of
                                                                   funds in the Fund Complex. Prior to May 2001, Managing
                                                                   Director and Chief Investment Officer of Van Kampen
                                                                   Investments, and Managing Director and President of the
                                                                   Advisers and Van Kampen Advisors Inc. Prior to December
                                                                   2000, Executive Vice President and Chief Investment Officer
                                                                   of Van Kampen Investments, and President and Chief Operating
                                                                   Officer of the Advisers. Prior to April 2000, Executive Vice
                                                                   President and Chief Investment Officer for Equity
                                                                   Investments of the Advisers. Prior to October 1998, Vice
                                                                   President and Senior Portfolio Manager with AIM Capital
                                                                   Management, Inc. Prior to February 1998, Senior Vice
                                                                   President and Portfolio Manager of Van Kampen American
                                                                   Capital Asset Management, Inc., Van Kampen American Capital
                                                                   Investment Advisory Corp. and Van Kampen American Capital
                                                                   Management, Inc.

Stefanie V. Chang (37)        Vice President           Officer     Executive Director of Morgan Stanley Investment Management.
1221 Avenue of the Americas                            since 2003  Vice President of funds in the Fund Complex.
New York, NY 10020

Joseph J. McAlinden (60)      Executive Vice           Officer     Managing Director and Chief Investment Officer of Morgan
1221 Avenue of the Americas   President and Chief      since 2002  Stanley Investment Advisors Inc., Morgan Stanley Investment
New York, NY 10020            Investment Officer                   Management Inc. and Morgan Stanley Investments LP and
                                                                   Director of Morgan Stanley Trust for over 5 years. Executive
                                                                   Vice President and Chief Investment Officer of funds in the
                                                                   Fund Complex. Managing Director and Chief Investment Officer
                                                                   of Van Kampen Investments, the Advisers and Van Kampen
                                                                   Advisors Inc. since December 2002.
</Table>

                                                                              35


<Table>
<Caption>
                                                        TERM OF
                                                       OFFICE AND
                                    POSITION(S)        LENGTH OF
NAME, AGE AND                        HELD WITH            TIME     PRINCIPAL OCCUPATION(S)
ADDRESS OF OFFICER                     TRUST             SERVED    DURING PAST 5 YEARS
                                                          

John R. Reynoldson (50)       Vice President           Officer     Executive Director and Portfolio Specialist of the Advisers
1 Parkview Plaza                                       since 2000  and Van Kampen Advisors Inc. Vice President of funds in the
P.O. Box 5555                                                      Fund Complex. Prior to July 2001, Principal and Co-head of
Oakbrook Terrace, IL 60181                                         the Fixed Income Department of the Advisers and Van Kampen
                                                                   Advisors Inc. Prior to December 2000, Senior Vice President
                                                                   of the Advisers and Van Kampen Advisors Inc. Prior to May
                                                                   2000, Senior Vice President of the investment grade taxable
                                                                   group for the Advisers. Prior to June 1999, Senior Vice
                                                                   President of the government securities bond group for Asset
                                                                   Management.

Ronald E. Robison (64)        Executive Vice           Officer     Chief Executive Officer and Chairman of Investor Services.
1221 Avenue of the Americas   President and Principal  since 2003  Executive Vice President and Principal Executive Officer of
New York, NY 10020            Executive Officer                    funds in the Fund Complex. Chief Global Operations Officer
                                                                   and Managing Director of Morgan Stanley Investment
                                                                   Management Inc. Managing Director of Morgan Stanley.
                                                                   Managing Director and Director of Morgan Stanley Investment
                                                                   Advisors Inc. and Morgan Stanley Services Company Inc. Chief
                                                                   Executive Officer and Director of Morgan Stanley Trust. Vice
                                                                   President of the Morgan Stanley Funds.

A. Thomas Smith III (46)      Vice President and       Officer     Managing Director of Morgan Stanley, Managing Director and
1221 Avenue of the Americas   Secretary                since 1999  Director of Van Kampen Investments, Director of the
New York, NY 10020                                                 Advisers, Van Kampen Advisors Inc., the Distributor,
                                                                   Investor Services and certain other subsidiaries of Van
                                                                   Kampen Investments. Managing Director and General
                                                                   Counsel-Mutual Funds of Morgan Stanley Investment Advisors,
                                                                   Inc. Vice President and Secretary of funds in the Fund
                                                                   Complex. Prior to July 2001, Managing Director, General
                                                                   Counsel, Secretary and Director of Van Kampen Investments,
                                                                   the Advisers, the Distributor, Investor Services, and
                                                                   certain other subsidiaries of Van Kampen Investments. Prior
                                                                   to December 2000, Executive Vice President, General Counsel,
                                                                   Secretary and Director of Van Kampen Investments, the
                                                                   Advisers, Van Kampen Advisors Inc., the Distributor,
                                                                   Investor Services and certain other subsidiaries of Van
                                                                   Kampen Investments. Prior to January 1999, Vice President
                                                                   and Associate General Counsel to New York Life Insurance
                                                                   Company ("New York Life"), and prior to March 1997,
                                                                   Associate General Counsel of New York Life. Prior to
                                                                   December 1993, Assistant General Counsel of The Dreyfus
                                                                   Corporation. Prior to August 1991, Senior Associate, Willkie
                                                                   Farr & Gallagher. Prior to January 1989, Staff Attorney at
                                                                   the Securities and Exchange Commission, Division of
                                                                   Investment Management, Office of Chief Counsel.
</Table>

 36


<Table>
<Caption>
                                                        TERM OF
                                                       OFFICE AND
                                    POSITION(S)        LENGTH OF
NAME, AGE AND                        HELD WITH            TIME     PRINCIPAL OCCUPATION(S)
ADDRESS OF OFFICER                     TRUST             SERVED    DURING PAST 5 YEARS
                                                          

John L. Sullivan (48)         Vice President, Chief    Officer     Director and Managing Director of Van Kampen Investments,
1 Parkview Plaza              Financial Officer and    since 1996  the Advisers, Van Kampen Advisors Inc. and certain other
P.O. Box 5555                 Treasurer                            subsidiaries of Van Kampen Investments. Vice President,
Oakbrook Terrace, IL 60181                                         Chief Financial Officer and Treasurer of funds in the Fund
                                                                   Complex. Head of Fund Accounting for Morgan Stanley
                                                                   Investment Management. Prior to December 2002, Executive
                                                                   Director of Van Kampen Investments, the Advisers and Van
                                                                   Kampen Advisors Inc.
</Table>

                                                                              37


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 conduct with
us, our affiliates, or third parties. We may also collect information you
provide when using our Web site, and text files (also known as "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 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.
                                                 VOT ANR 12/03 Member NASD/SIPC.
                                                               12539L03-AS-12/03


Item 2. Code of Ethics.

(a)      The Trust has adopted a code of ethics (the "Code of Ethics") that
applies to its principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the Trust or
a third party.

(b)      No information need be disclosed pursuant to this paragraph.

(c)      Not applicable

(d)      Not applicable

(e)      Not applicable.

(f)

         (1)      The Trust's Code of Ethics is attached hereto as Exhibit 10A.

         (2)      Not applicable.

         (3)      Not applicable.

Item 3. Audit Committee Financial Expert.

The Trust's Board of Trustees has determined that it has four "audit committee
financial experts" serving on its audit committee, each of whom are
"independent" Trustees : J. Miles Branagan, Jerry Choate, R. Craig Kennedy and
Theodore A. Myers. Under applicable securities laws, a person who is determined
to be an audit committee financial expert will not be deemed an "expert" for any
purpose, including without limitation for the purposes of Section 11 of the
Securities Act of 1933, as a result of being designated or identified as an
audit committee financial expert. The designation or identification of a person
as an audit committee financial expert does not impose on such person any
duties, obligations, or liabilities that are greater than the duties,
obligations, and liabilities imposed on such person as a member of the audit
committee and Board of Trustees in the absence of such designation or
identification.

Item 4. Principal Accountant Fees and Services.

Applicable only for reports covering fiscal years ending on or after December
15, 2003.

Item 5. Audit Committee of Listed Registrants.

Applicable only for reports covering periods ending on or after the earlier of
(i) the first annual shareholder meeting after January 15, 2004 or (ii) October
31, 2004.

Item 6. [Reserved.]

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.

The Trust invests in exclusively non-voting securities and therefore this item
is not applicable to the Trust.

Item 8. [Reserved.]

Item 9. Controls and Procedures



(a) 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.

(b) There were no changes in the registrant's internal control over financial
reporting that occurred during the registrant's most recent fiscal half-year
(the registrant's second fiscal half-year in the case of an annual report) that
has materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.

Item 10.  Exhibits.

(a) The Code of Ethics for Principal Executive and Senior Financial Officers is
      attached herto.

(b) A separate certification for each principal executive officer and principal
      financial officer of the registrant are 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 Municipal Opportunity Trust II

By: /s/ Ronald E. Robison
   --------------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: December 18, 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: December 18, 2003

By: /s/ John L. Sullivan
   --------------------------
Name: John L. Sullivan
Title: Principal Financial Officer
Date: December 18, 2003