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 811-6736
Van Kampen Advantage Municipal Income Trust
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
1221 Avenue of the Americas, New York, New York 10020
- -------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Ronald Robison
1221 Avenue of the Americas, New York, New York 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: 4/30/04
Item 1. Report to Shareholders.
The semiannual report transmitted to shareholders pursuant to Rule 30e-1
under the Investment Company Act of 1940 is as follows:
Welcome, Shareholder
In this report, you'll learn about how your investment in Van Kampen
Advantage Municipal Income Trust performed during the semiannual 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 April 30, 2004.
Market forecasts provided in this report may not necessarily come to
pass. There is no assurance that the trust will achieve its investment
objective. Trusts are subject to market risk, which is the possibility
that the market values of securities owned by the trust will decline and
that the value of trust shares may therefore be less than what you paid
for them. Accordingly, you can lose money investing in this trust.
Income may subject certain individuals to the federal Alternative Minimum
Tax (AMT).
<Table>
<Caption>
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NOT FDIC INSURED OFFER NO BANK GUARANTEE MAY LOSE VALUE
---------------------------------------------------------------------------------------
NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY NOT A DEPOSIT
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</Table>
Performance Summary as of 4/30/04
<Table>
<Caption>
ADVANTAGE MUNICIPAL INCOME TRUST
SYMBOL: VKA
- ------------------------------------------------------
AVERAGE ANNUAL BASED ON BASED ON
TOTAL RETURNS NAV MARKET PRICE
Since Inception (09/25/92) 7.44% 6.39%
10-year 7.66 7.17
5-year 6.30 5.65
1-year 2.54 -4.29
6-month 1.10 -6.94
- ------------------------------------------------------
</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. 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 SIX-MONTH PERIOD ENDED APRIL 30, 2004
Van Kampen Advantage Municipal Income Trust is managed by the adviser's
Municipal Fixed Income team.(1) Current members include Dennis Pietrzak,
Executive Director; Robert Wimmel, Vice President; and John Reynoldson,
Executive Director.
MARKET CONDITIONS
The state of the U.S. economy remained mixed over the six-month period under
review. On the positive side, economic growth continued to be robust, with Gross
Domestic Product growth topping 4 percent in both the last quarter of 2003 and,
preliminarily, the first quarter of this year. While this strength in output has
historically triggered fears of rising interest rates, yields remained
stubbornly low across the municipal curve. These low yields were partly the
result of the continued low levels of observed inflation in the U.S. economy.
Unfortunately, they also reflected continuing weakness in the job market, which
remained soft throughout most of the period. The soft job numbers, coupled with
persistently low inflation, led the Federal Open Market Committee (the Fed) to
maintain its accommodative stance throughout the period.
The surprisingly rapid job growth data released in April, coupled with rapidly
rising commodity and high oil prices, led many investors to fear that the Fed
would be forced to raise interest rates earlier than the market initially
expected. As a result, bond yields across all major sectors spiked in April.
Supply of new municipal bonds in calendar 2003 hit record levels as
municipalities moved to take advantage of historically low interest rates. Many
cities and states sought to reduce expenditures by refinancing existing debt and
replacing it with lower-yielding bonds. In other cases, municipalities attempted
to meet current and future funding needs by issuing new debt. This activity
slowed in the first months of 2004.
The low interest rates that prevailed over much of the period also had an impact
on the demand for municipal bonds. Retail and institutional investor activity
slowed as holders of municipal bonds saw little reason to sell bonds purchased
at higher yield levels and reinvest at lower yields. However, the period was
marked by rising activity among non-traditional investors, such as hedge funds
and insurance companies seeking to take advantage of the attractiveness of
municipal bonds relative to some taxable securities. Additionally, investors'
search for yield led to significant outperformance by lower-rated bonds with
greater credit risk. Sectors such as health care, with a preponderance of
lower-rated issues, performed particularly well.
(1)Team members may change without notice at any time.
2
PERFORMANCE ANALYSIS
Closed-end fund returns 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 an NAV basis and a market price basis,
the trust underperformed its benchmark, the Lehman Brothers Municipal Bond
Index. (See table below.)
The trust uses leverage to enhance its dividend to common shareholders. The
trust borrows money at short-term rates through the issuance of preferred
shares. The proceeds are typically reinvested in longer-term securities, taking
advantage of the difference between short- and longer-term rates. With short-
term rates at historic lows for much of the period, the difference between
short-and longer-term rates was relatively high. This made using leverage a
particularly profitable approach in the early months of the period, and added to
the trust's returns. As yields rose toward the end of the period, the prices of
bonds declined. The trust's use of leverage magnified this negative price
movement, leading to modest underperformance on an NAV basis relative to the
trust's benchmark, which is not leveraged.
Our analysis of the macroeconomic environment, coupled with the levels of
interest rates near multi-decade lows, led us to believe that interest rates
were more likely to rise than to fall further. As a result, we kept the trust's
duration (a measure of interest-rate sensitivity) below that of its benchmark in
order to limit the potentially damaging impact of any increase in interest
rates. This approach hampered the trust's returns for much of the period as
interest rates fell; however, it helped buoy returns when interest rates soared
in the final weeks of the period.
The trust's performance was also modestly hampered by its bias, relative to the
benchmark, toward high-quality securities. Municipal bond investors during the
period responded to the improving economy by reducing the yield spreads between
higher and lower-rated bonds (yield spreads reflect the premium demanded by
investors to buy lower-rated bonds). As a result, lower-quality bonds
outperformed. The portfolio had 90 percent exposure to bonds rated AA/Aa or
higher at the end of the period.
TOTAL RETURN FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2004
<Table>
<Caption>
- ----------------------------------------------------------
BASED ON BASED ON LEHMAN BROTHERS
NAV MARKET PRICE MUNICIPAL BOND INDEX
1.10% -6.94% 1.19%
- ----------------------------------------------------------
</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 and index definition.
3
We also adjusted the portfolio's term structure in anticipation of rising
interest rates. Our research showed that the intermediate portion of the curve
offered the most promising total-return potential. As a result, we focused our
purchases on the 15- to 20-year segment of the curve. Many of the securities we
identified had the added appeal of premium coupons and 10-year call dates, which
served to add income to the portfolio while limiting its interest-rate exposure.
Our trading activity during the period was below traditional norms because we
wanted to avoid having to reinvest into securities with low yields. That said,
we were able to make selective relative-value trades among securities and
sectors as they moved into and out of fair value. Some of these acquisitions
were funded by the proceeds of housing bonds that were called away by their
issuers during the period. In other cases we sold bonds that met their
performance objectives. We reinvested this cash into securities with more
promising total-returns characteristics.
The trust's portfolio remained well diversified during the period, with its
holdings spread across many major municipal bond sectors. We believe this
long-standing strategy helps to minimize the risk of over-concentration in any
single sector, while also giving the portfolio exposure to as many potential
sources of return as possible. The three largest sector exposures at the end of
the period were general purpose, public education and health care.
As mentioned above, the portfolio's below-market duration served it well in the
final weeks of the period, when interest rates rose sharply. While it is
impossible to predict how long this trend will hold, we believe that the trust
is well positioned to weather further increases in rates. We look forward to
becoming more active in seeking attractive structures and relative-value trading
opportunities now that rates have moved into a more normal range.
<Table>
TOP 5 SECTORS AS OF 4/30/04 RATINGS ALLOCATION AS OF 4/30/04
General Purpose 12.2% AAA/Aaa 73.0%
Public Education 10.8 AA/Aa 17.0
Health Care 10.3 A/A 6.0
Wholesale Electric 9.6 BBB/Baa 3.5
Higher Education 9.5 BB/Ba 0.2
B/B 0.3
</Table>
Subject to change daily. Provided for informational purposes only and should not
be deemed as a recommendation to buy or sell the securities mentioned or
securities in the sectors shown above. All percentages are as a percentage of
long-term investments. Securities are classified by sectors that represent broad
groupings of related industries. Ratings allocations based upon ratings as
issued by Standard and Poor's and Moody's. Van Kampen is a wholly owned
subsidiary of a global securities firm which is engaged in a wide range of
financial services including, for example, 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
VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED)
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
MUNICIPAL BONDS 159.2%
ALABAMA 1.5%
$ 1,000 Alabama Bldg Renovation Fin Auth Rev Rfdg
(AMBAC Insd).............................. 5.625% 09/01/24 $ 1,068,200
1,550 Birmingham, AL Arpt Auth Arpt Rev Rfdg
(AMT) (AMBAC Insd)........................ 5.500 07/01/14 1,629,701
2,000 Montgomery, AL Wt (AMBAC Insd)............ 5.250 05/01/20 2,109,280
-------------
4,807,181
-------------
ARIZONA 3.6%
1,425 Arizona Cap Fac Fin Corp Student Hsg Rev
AZ St Univ Proj........................... 6.250 09/01/32 1,474,162
2,500 Arizona Sch Fac Brd Rev St Sch Impt....... 5.500 07/01/17 2,723,475
2,900 Arizona Tourism & Sports Auth Multi Purp
Stad Fac Ser A (MBIA Insd)................ 5.375 07/01/22 3,076,436
2,875 Phoenix, AZ Civic Impt Corp Arpt Rev Jr
Lien (AMT) (FGIC Insd).................... 5.375 07/01/29 2,897,137
855 Pima Cnty, AZ Indl Dev Auth Indl Rev Lease
Oblig Irvington Proj Tucson Ser A Rfdg
(FSA Insd)................................ 7.250 07/15/10 899,118
-------------
11,070,328
-------------
CALIFORNIA 7.0%
2,630 Anaheim, CA Pub Fin Auth Lease Rev Cap
Apprec Sub Pub Impts Proj C (FSA Insd).... * 09/01/20 1,128,849
4,500 California St (AMBAC Insd)................ 5.125 10/01/27 4,513,905
5,500 California St Dept Wtr Res Pwr Ser A
(AMBAC Insd).............................. 5.500 05/01/16 6,003,140
2,000 California St Dept Wtr Res Pwr Ser A...... 5.750 05/01/17 2,168,540
5,000 Foothill/Eastern Corridor Agy CA Toll Rd
Rev Cap Apprec Rfdg....................... * 01/15/25 1,453,750
3,185 Imperial Irr Dist Calif Rev Elec Sys Proj
(FSA Insd)................................ 5.250 11/01/18 3,381,960
3,000 Los Angeles, CA Uni Sch Dist Ser A (FSA
Insd)..................................... 5.250 07/01/19 3,189,360
-------------
21,839,504
-------------
COLORADO 2.3%
8,500 Arapahoe Cnty, CO Cap Impt Tr Fd Hwy Rev
E-470 Proj Ser C (Prerefunded @
08/31/05)................................. * 08/31/26 1,737,315
3,000 Colorado Hlth Fac Auth Rev Catholic Hlth
Initiatives Ser A......................... 5.500 03/01/32 3,077,460
160 Colorado Hsg Fin Auth Single Family Pgm Sr
Ser B1 (AMT).............................. 7.900 12/01/25 162,304
15 Colorado Hsg Fin Auth Single Family Pgm Sr
Ser D-1 Rfdg (a).......................... 8.000 12/01/24 15,204
2,000 La Plata Cnty, CO Sch Dist 9 (MBIA
Insd)..................................... 5.250 11/01/19 2,116,300
-------------
7,108,583
-------------
</Table>
6 See Notes to Financial Statements
VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
CONNECTICUT 1.5%
$ 3,250 Connecticut St Spl Oblig Pkg Rev Bradley
Intl Arpt Ser A (AMT) (ACA Insd).......... 6.600% 07/01/24 $ 3,488,322
1,000 Hartford, CT Pkg Sys Rev Ser A............ 6.400 07/01/20 1,037,140
-------------
4,525,462
-------------
DISTRICT OF COLUMBIA 2.1%
2,500 District Columbia Rev Gonzaga College (FSA
Insd)..................................... 5.250 07/01/32 2,533,250
3,850 Metropolitan Washington DC Arpt Auth Sys
Ser A (AMT) (FGIC Insd)................... 5.250 10/01/32 3,860,202
-------------
6,393,452
-------------
FLORIDA 2.3%
2,000 Escambia Cnty, FL Hlth Fac Auth Rev (AMBAC
Insd)..................................... 5.950 07/01/20 2,089,280
2,500 Miami-Dade Cnty, FL Aviation Rev Miami
Intl Arpt (AMT) (FGIC Insd)............... 5.375 10/01/32 2,549,725
2,355 Plantation, FL Proj Impt & Rfdg (FSA
Insd)..................................... 5.000 08/15/19 2,447,999
-------------
7,087,004
-------------
GEORGIA 3.9%
1,000 Atlanta, GA Arpt Rev Ser B (AMT) (FGIC
Insd)..................................... 5.625 01/01/30 1,035,650
3,770 Monroe Cnty, GA Dev Auth Pollutn Ctl Rev
Oglethorpe Pwr Corp Scherer Ser A......... 6.800 01/01/12 4,405,396
3,000 Municipal Elec Auth GA Combustion Turbine
Proj Ser A (MBIA Insd).................... 5.250 11/01/19 3,168,720
2,500 Municipal Elec Auth GA Combustion Turbine
Proj Ser A (MBIA Insd).................... 5.250 11/01/21 2,619,550
1,000 Oconee Cnty, GA Indl Dev Auth Rev Oiit
Proj (XLCA Insd).......................... 5.250 07/01/25 1,020,720
-------------
12,250,036
-------------
ILLINOIS 17.9%
3,750 Bolingbrook, IL Cap Apprec Ser B (MBIA
Insd)..................................... * 01/01/30 855,675
2,000 Chicago, IL Brd of Ed (Prerefunded @
12/01/10) (FGIC Insd)..................... 5.500 12/01/31 2,258,120
5,000 Chicago, IL Brd of Ed Cap Apprec Sch
Reform Ser A (FGIC Insd).................. * 12/01/28 1,259,850
3,150 Chicago, IL O'Hare Intl Arpt Rev Gen Arpt
Third Lien Ser A Rfdg (AMT) (MBIA Insd)... 5.375 01/01/32 3,191,013
1,895 Chicago, IL Pk Dist Hbr Fac Rev
(Prerefunded @ 01/01/11).................. 5.875 01/01/16 2,161,153
2,500 Chicago, IL Pk Dist Ser C (FGIC Insd)..... 5.500 01/01/19 2,691,225
1,000 Chicago, IL Wastewtr Transmission Rev
Second Lien (MBIA Insd)................... 5.750 01/01/25 1,071,450
3,000 Cicero, IL Alt Rev Source (Prerefunded @
12/01/04) (MBIA Insd)..................... 6.500 12/01/14 3,152,190
4,500 Cook Cnty, IL Cap Impt Ser A (FGIC
Insd)..................................... 5.000 11/15/23 4,549,905
</Table>
See Notes to Financial Statements 7
VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
ILLINOIS (CONTINUED)
$ 1,620 Cook Cnty, IL Cmnty High Sch Dist No. 219
Niles Twp (FSA Insd)...................... * 12/01/11 $ 1,188,659
2,260 Cook Cnty, IL Cmnty High Sch Dist No. 219
Niles Twp (FSA Insd)...................... * 12/01/12 1,561,185
2,235 Cook Cnty, IL Cmnty High Sch Dist No. 219
Niles Twp (FSA Insd)...................... * 12/01/13 1,456,527
3,110 Du Page Cnty, IL Trans Rev (FSA Insd)..... 5.750% 01/01/17 3,435,524
2,740 Illinois Dev Fin Auth Rev Loc Govt Pgm
Aurora East Sch (MBIA Insd)............... * 12/01/16 1,486,176
820 Illinois Hsg Dev Auth Rev Homeowner Mtg G2
(AMT)..................................... 6.050 08/01/29 852,456
4,375 Illinois St Sales Tax Rev................. 5.000 06/15/21 4,481,312
1,925 Kendall, Kane & Will Cntys, IL Cmnty Unit
Sch Dist No. 308 Ser B (FGIC Insd)........ 5.250 10/01/21 2,009,411
2,135 Mc Henry Cnty, IL Cmnty High Sch Dist No.
154 Cap Apprec (FGIC Insd)................ * 01/01/14 1,364,991
1,440 Mc Henry Cnty, IL Cmnty High Sch Dist No.
154 Cap Apprec (FGIC Insd)................ * 01/01/17 770,256
1,250 Metropolitan Pier & Expo Auth IL Dedicated
St Tax Rev McCormick Pl Expn Proj (FGIC
Insd)..................................... 5.375 12/15/18 1,335,650
1,000 Metropolitan Pier & Expo Auth IL Dedicated
St Tax Rev McCormick Pl Expn Proj Rfdg
(FGIC Insd)............................... 5.500 12/15/24 1,050,320
6,000 Metropolitan Pier & Expo Auth IL Dedicated
St Tax Rev McCormick Pl Expn Ser A (MBIA
Insd)..................................... 5.250 06/15/42 6,093,060
5,000 Regional Tran Auth IL Ser B (AMBAC
Insd)..................................... 8.000 06/01/17 6,707,400
1,150 Will Cnty, IL Cmnty Sch Dist 365U Vly View
Ser B (FSA Insd).......................... * 11/01/15 666,413
-------------
55,649,921
-------------
INDIANA 3.0%
1,000 Allen Cnty, IN Juvenile Justice Ctr First
Mtg (AMBAC Insd).......................... 5.500 01/01/18 1,079,740
1,960 Bloomington, IN Swr Wks Rev Rfdg (MBIA
Insd)..................................... 5.000 01/01/20 2,009,882
1,060 Bloomington, IN Swr Wks Rev Rfdg (MBIA
Insd)..................................... 5.000 01/01/21 1,082,207
2,000 Indiana Hlth Fac Fin Auth Hosp Rev
Columbus Regl Hosp Rfdg (FSA Insd)........ 7.000 08/15/15 2,421,840
1,500 Indiana St Dev Fin Auth Rev Exempt Fac
Conv Rfdg (AMT)........................... 5.950 08/01/30 1,521,135
</Table>
8 See Notes to Financial Statements
VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
INDIANA (CONTINUED)
$ 1,220 North Adams, IN Cmnty Sch Cap Apprec First
Mtg (FSA Insd)............................ * 07/15/16 $ 675,599
1,230 North Adams, IN Cmnty Sch Cap Apprec First
Mtg (FSA Insd)............................ * 01/15/17 658,296
-------------
9,448,699
-------------
KANSAS 0.2%
200 Sedgwick & Shawnee Cntys, KS Single Family
Rev Coll Mtg Ser A -II Rfdg (AMT) (GNMA
Collateralized)........................... 8.050% 05/01/24 212,164
260 Sedgwick Cnty, KS Single Family Rev Coll
Mtg Ser A -III Rfdg (AMT) (GNMA
Collateralized)........................... 8.125 05/01/24 271,367
-------------
483,531
-------------
LOUISIANA 2.2%
415 Louisiana Hsg Fin Agy Mtg Rev Single
Family Access Pgm Ser B (AMT) (GNMA
Collateralized)........................... 8.000 03/01/25 425,097
3,000 Louisiana St Energy & Pwr Auth Pwr Proj
Rev Rfdg (FSA Insd)....................... 5.750 01/01/12 3,380,550
3,000 Saint Charles Parish, LA Environmental
Impt Rev LA Pwr & Lt Co Ser A (AMT) (AMBAC
Insd)..................................... 6.875 07/01/24 3,083,940
-------------
6,889,587
-------------
MARYLAND 1.5%
1,000 Maryland St Econ Dev Corp Univ MD College
Park Proj................................. 5.625 06/01/35 1,010,860
1,250 Maryland St Hlth & Higher Ed Fac Auth Rev
Medstar Health Rfdg....................... 5.375 08/15/24 1,216,775
2,360 Northeast, MD Waste Disp Auth Rfdg (AMT)
(AMBAC Insd).............................. 5.500 04/01/16 2,520,102
-------------
4,747,737
-------------
MASSACHUSETTS 3.9%
3,955 Massachusetts Bay Trans Auth Gen Trans Sys
Ser A Rfdg................................ 5.500 03/01/12 4,403,655
4,815 Massachusetts Muni Whsl Elec Co Proj 6-A
(MBIA Insd)............................... 5.000 07/01/11 5,207,374
1,500 Massachusetts St Fed Hwy Gnt Antic Nt Ser
A......................................... 5.750 06/15/15 1,700,715
1,000 Massachusetts St Hlth & Ed Fac Auth Rev
Saint Mem Med Ctr Ser A................... 6.000 10/01/23 930,140
-------------
12,241,884
-------------
MICHIGAN 0.6%
1,680 Michigan Higher Ed Fac Auth Rev Ltd Oblig
Hope College Proj Rfdg (Connie Lee Insd)
(Partially Prerefunded @ 10/01/04)........ 7.000 10/01/14 1,734,466
-------------
</Table>
See Notes to Financial Statements 9
VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
MINNESOTA 1.3%
$ 3,875 St Paul, MN Port Auth Lease Rev Office
Bldg at Cedar Str......................... 5.250% 12/01/19 $ 4,125,519
-------------
MISSISSIPPI 1.6%
2,000 Mississippi Bus Fin Corp MS Pollutn Ctl
Rev Sys Energy Res Inc Proj............... 5.875 04/01/22 2,009,980
1,000 Mississippi Bus Fin Corp MS Pollutn Ctl
Rev Sys Energy Res Inc Proj Rfdg.......... 5.900 05/01/22 1,005,460
1,155 Mississippi Home Corp Single Family Rev
Mtg Access Pgm Ser B (AMT) (GNMA
Collateralized)........................... 7.900 03/01/25 1,174,993
420 Mississippi Home Corp Single Family Rev
Mtg Access Pgm Ser C (AMT) (GNMA
Collateralized)........................... 8.125 12/01/24 440,584
425 Mississippi Home Corp Single Family Rev
Mtg Access Pgm Ser E (AMT) (GNMA
Collateralized)........................... 8.100 12/01/25 447,869
-------------
5,078,886
-------------
MISSOURI 1.6%
2,100 Kansas City, MO Arpt Rev Gen Impt Ser A
(AMT) (FSA Insd).......................... 6.900 09/01/10 2,154,747
1,345 Kansas City, MO Met Cmnty Colleges Bldg
Corp Rev Leasehold Jr College Impt & Rfdg
(FGIC Insd)............................... 5.500 07/01/17 1,463,831
1,210 St Louis, MO Arpt Rev Cap Impt Pgm Ser A
(MBIA Insd)............................... 5.375 07/01/18 1,293,998
-------------
4,912,576
-------------
NEW HAMPSHIRE 0.7%
1,155 New Hampshire Hlth & Ed Fac Auth Rev
Derryfield Sch............................ 7.000 07/01/30 1,151,408
1,000 New Hampshire St Bus Fin Auth Wtr Fac Rev
Pennichuck Wtrwks Inc (AMT)
(AMBAC Insd).............................. 6.300 05/01/22 1,105,870
-------------
2,257,278
-------------
NEW JERSEY 11.3%
5,000 New Jersey Econ Dev Auth Sch Fac Constr
Ser F (FGIC Insd)......................... 5.250 06/15/20 5,306,650
10,000 New Jersey Econ Dev Auth St Contract Econ
Recovery (MBIA Insd)...................... 5.900 03/15/21 11,479,200
8,000 New Jersey Econ Dev Auth Wtr Fac Rev NJ
American Wtr Co Inc Proj Ser A (AMT) (FGIC
Insd)..................................... 6.875 11/01/34 8,348,080
</Table>
10 See Notes to Financial Statements
VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
NEW JERSEY (CONTINUED)
$ 5,000 New Jersey St Ed Fac Auth Higher Ed Cap
Impt Ser A (AMBAC Insd)................... 5.250% 09/01/21 $ 5,252,650
4,650 Salem Cnty, NJ Indl Pollutn Ctl Fin Auth
Rev Pub Svc Elec & Gas Ser D Rfdg (MBIA
Insd)..................................... 6.550 10/01/29 4,829,397
-------------
35,215,977
-------------
NEW MEXICO 1.1%
2,020 University NM Univ Rev Sub Lien Ser A
Rfdg...................................... 5.250 06/01/20 2,115,384
1,125 University NM Univ Rev Sub Lien Ser A
Rfdg...................................... 5.250 06/01/21 1,173,476
-------------
3,288,860
-------------
NEW YORK 25.3%
170 Broome Cnty, NY Ctf Partn (MBIA Insd)..... 5.250 04/01/15 173,805
1,300 New York City Indl Dev Civic YMCA Gtr NY
Proj...................................... 5.800 08/01/16 1,400,516
3,500 New York City Muni Wtr Fin Fiscal 2004
Ser C..................................... 5.000 06/15/22 3,579,380
2,225 New York City Ser F Rfdg.................. 6.000 08/01/11 2,416,773
2,500 New York City Ser H....................... 5.750 03/15/12 2,746,250
5,000 New York City Transitional Fin Auth Rev
Future Tax Secd Ser A Rfdg (b)............ 5.500/14.000 11/01/26 5,526,200
2,525 New York St Dorm Auth Lease Rev Muni Hlth
Fac Impt Pgm Ser A (FSA Insd)............. 5.500 05/15/25 2,616,859
1,625 New York St Dorm Auth Lease Rev St Univ
Dorm Fac Ser A............................ 6.000 07/01/14 1,829,116
1,450 New York St Dorm Auth Lease Rev St Univ
Dorm Fac Ser C (Prerefunded @ 07/01/09)
(MBIA Insd)............................... 5.500 07/01/29 1,635,875
1,135 New York St Dorm Auth Rev City Univ Secd
Ser B (Escrowed to Maturity).............. 5.375 07/01/07 1,242,337
3,915 New York St Dorm Auth Rev City Univ Secd
Ser B..................................... 5.375 07/01/07 4,243,938
3,100 New York St Dorm Auth Rev City Univ Sys
Cons Ser A................................ 5.625 07/01/16 3,456,221
2,600 New York St Dorm Auth Rev Cons City Univ
Sys Second Gen Ser A...................... 5.750 07/01/13 2,918,422
2,535 New York St Dorm Auth Rev Mental Hlth Ser
B (Partially Prerefunded @ 02/15/07)...... 5.750 08/15/11 2,761,376
15 New York St Dorm Auth Rev Mental Hlth Ser
B (Prerefunded @ 02/15/07)................ 5.750 08/15/11 16,701
2,545 New York St Dorm Auth Rev Mental Hlth Svc
Fac Impt Ser D (FSA Insd)................. 5.875 02/15/14 2,790,898
1,350 New York St Dorm Auth Rev Ser B........... 7.500 05/15/11 1,594,310
650 New York St Dorm Auth Rev Ser B
(Prerefunded @ 05/15/09).................. 7.500 05/15/11 793,130
5,000 New York St Dorm Auth Rev St Univ Ed Fac
Ser A..................................... 5.500 05/15/08 5,503,400
</Table>
See Notes to Financial Statements 11
VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
$ 5,000 New York St Med Care Fac Fin Agy Rev NY
Downtown Hosp Ser A (Prerefunded @
02/15/05)................................. 6.800% 02/15/20 $ 5,315,350
6,750 New York St Med Care Fac Fin Agy Rev NY
Hosp Mtg Ser A (Prerefunded @ 02/15/05)
(AMBAC Insd).............................. 6.300 08/15/06 7,148,115
7,000 New York St Med Care Fac Fin Agy Rev NY
Hosp Mtg Ser A (Prerefunded @ 02/15/05)
(AMBAC Insd).............................. 6.400 08/15/07 7,418,390
1,970 New York St Mtg Agy Rev Homeowner Mtg Ser
82 (AMT).................................. 5.650 04/01/30 2,042,122
2,160 New York St Twy Auth Svc Contract Rev Loc
Hwy & Brdg................................ 5.500 04/01/16 2,339,712
4,865 New York St Twy Auth Svc Contract Rev Loc
Hwy & Brdg (Prerefunded @ 04/01/12)....... 5.500 04/01/16 5,458,773
1,550 New York St Urban Dev Corp Rev
Correctional Cap Fac Ser 7 (Prerefunded @
01/01/07)................................. 5.700 01/01/27 1,719,307
-------------
78,687,276
-------------
NORTH CAROLINA 5.4%
11,000 North Carolina Muni Pwr Agy No 1 Catawba
Elec Rev Rfdg (MBIA Insd)................. 6.000 01/01/12 12,568,820
4,000 North Carolina Muni Pwr Agy Ser A (MBIA
Insd)..................................... 5.250 01/01/19 4,220,480
-------------
16,789,300
-------------
NORTH DAKOTA 0.5%
1,410 North Dakota St Hsg Fin Agy Rev Hsg Fin
Pgm Home Mtg Fin Ser B (AMT) (MBIA
Insd)..................................... 5.500 07/01/29 1,430,487
-------------
OHIO 3.1%
3,000 Akron Ohio Income Tax Rev Cmnty Learning
Ctrs Ser A (FGIC Insd).................... 5.250 12/01/19 3,186,720
1,000 Cuyahoga Cnty, OH Hosp Fac Rev Canton Inc
Proj...................................... 7.500 01/01/30 1,101,400
2,000 Lorain Cnty, OH Hosp Rev Catholic
Hlthcare.................................. 5.375 10/01/30 2,002,580
2,450 Lorain Cnty, OH Hosp Rev Catholic Hlthcare
Ser A Impt & Rfdg......................... 5.250 10/01/33 2,394,263
1,000 Marion Cnty, OH Hosp Impt Rev Cmnty Hosp
Rfdg...................................... 6.375 05/15/11 1,055,370
-------------
9,740,333
-------------
OKLAHOMA 4.4%
3,410 Jenks, OK Aquarium Auth Rev Rfdg (MBIA
Insd)..................................... 5.250 07/01/24 3,557,960
1,475 Jenks, OK Aquarium Auth Rev Rfdg (MBIA
Insd)..................................... 5.250 07/01/33 1,522,480
</Table>
12 See Notes to Financial Statements
VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
OKLAHOMA (CONTINUED)
$ 1,100 Oklahoma City, OK Indl & Cultural Fac Tr
Rev Dist Heating & Cooling Trigen (AMT)
(LOC: Societe Generale)................... 6.750% 09/15/17 $ 1,104,202
1,065 Oklahoma Dev Fin Auth Lease Rev OK Council
Law Enforcement (MBIA Insd)............... 5.500 06/01/17 1,158,827
1,120 Oklahoma Dev Fin Auth Lease Rev OK Council
Law Enforcement (MBIA Insd)............... 5.500 06/01/18 1,215,469
1,185 Oklahoma Dev Fin Auth Lease Rev OK Council
Law Enforcement (MBIA Insd)............... 5.500 06/01/19 1,282,893
2,000 Sapulpa, OK Muni Auth Cap Impt Rev Rfdg
(Prerefunded @ 07/01/10) (FSA Insd)....... 5.750 07/01/30 2,289,540
1,250 Tulsa Cnty, OK Pub Fac Auth Cap Impt Rev
(AMBAC Insd).............................. 6.250 11/01/22 1,438,500
-------------
13,569,871
-------------
OREGON 4.0%
2,500 Oregon Hlth Sciences Univ Insd Ser A (MBIA
Insd)..................................... 5.250 07/01/22 2,608,575
5,000 Oregon St Dept Admin Ser C Rfdg (MBIA
Insd)..................................... 5.250 11/01/18 5,288,250
4,000 Portland, OR Swr Sys Rev Ser A (FGIC
Insd)..................................... 5.750 08/01/18 4,450,440
-------------
12,347,265
-------------
PENNSYLVANIA 7.4%
2,650 Central Dauphin, PA Sch Dist (FSA Insd)
(c)....................................... 5.000 12/01/19 2,764,030
2,210 Chartiers Valley, PA Sch Dist Ser A (FSA
Insd) (c)................................. 5.250 10/15/19 2,370,866
700 Harrisburg, PA Cap Apprec Ser D Rfdg
(AMBAC Insd).............................. * 03/15/14 448,987
1,830 Harrisburg, PA Cap Apprec Ser D Rfdg
(AMBAC Insd).............................. * 09/15/14 1,147,685
4,000 Pennsylvania Intergovt Coop Auth Spl Tax
Rev Philadelphia Fdg Pgm (Prerefunded @
06/15/05) (FGIC Insd)..................... 6.750 06/15/21 4,238,480
3,090 Philadelphia, PA Gas Wks Rev 1975 Gen
Ordinance 17th Ser (FSA Insd)............. 5.375 07/01/19 3,309,081
2,440 Philadelphia, PA Sch Dist Ser A (FSA
Insd)..................................... 5.750 02/01/11 2,757,322
2,000 Radnor Twp, PA Sch Dist (Prerefunded @
03/15/07)................................. 5.750 03/15/26 2,194,880
3,750 State Pub Sch Bldg Auth PA Sch Rev Lease
Philadelphia Sch Dist Proj (FSA Insd)..... 5.000 06/01/33 3,735,600
-------------
22,966,931
-------------
RHODE ISLAND 1.4%
4,220 Rhode Island St Econ Dev Ser A Rfdg (AMT)
(FSA Insd)................................ 5.000 07/01/18 4,258,233
-------------
</Table>
See Notes to Financial Statements 13
VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
SOUTH CAROLINA 2.5%
$ 1,385 Easley, SC Util Rev (FSA Insd)............ 5.250% 12/01/20 $ 1,459,762
2,500 South Carolina Jobs Econ Dev Auth Indl Rev
Elec & Gas Co Proj Ser A (AMT) (AMBAC
Insd)..................................... 5.200 11/01/27 2,554,600
3,750 South Carolina Jobs Econ Dev Auth Indl Rev
Elec & Gas Co Proj Ser B (AMBAC Insd)..... 5.450 11/01/32 3,847,163
-------------
7,861,525
-------------
TENNESSEE 1.0%
1,000 Elizabethton, TN Hlth & Ed Fac Brd Rev
Hosp First Mtg Ser B Impt & Rfdg.......... 8.000 07/01/33 1,155,600
1,500 Elizabethton, TN Hlth & Ed Fac Brd Rev
Hosp Ser B Impt & Rfdg (MBIA Insd)........ 7.750 07/01/29 1,910,220
100 Franklin, TN Spl Sch Dist Cap Apprec (FSA
Insd)..................................... * 06/01/16 57,172
-------------
3,122,992
-------------
TEXAS 17.4%
2,350 Austin, TX Ctf Oblig (MBIA Insd).......... 5.375 09/01/20 2,492,316
825 Brazos, TX Higher Ed Auth Inc Student Ln
Rev Sub Ser A2 Rfdg (AMT)................. 6.800 12/01/04 844,891
3,000 Dallas Cnty, TX Util & Reclamation Dist
Ser B Rfdg (AMBAC Insd)................... 5.875 02/15/29 3,078,930
4,000 Dallas-Fort Worth, TX Intl Arpt Rev Jt Ser
A (AMT) (FSA Insd)........................ 5.500 11/01/21 4,197,640
2,500 Dallas-Fort Worth, TX Intl Arpt Rev Jt Ser
A (AMT) (FGIC Insd)....................... 5.750 11/01/30 2,581,950
1,000 Fort Worth, TX Gen Purp Ser A Rfdg........ 5.000 03/01/22 1,015,220
6,000 Harris Cnty, TX Flood Ctl Dist Contract
Rfdg...................................... 5.000 10/01/22 6,101,220
2,000 Harris Cnty, TX Hlth Fac Dev Mem Hermann
Hlthcare Ser A............................ 6.375 06/01/29 2,247,640
5,000 Houston, TX Arpt Sys Rev Sub Lien Ser A
(AMT) (FSA Insd).......................... 5.125 07/01/32 4,911,850
2,910 Houston, TX Wtr & Swr Sys Rev Jr Lien Ser
C (FGIC Insd)............................. 5.375 12/01/27 2,985,165
515 Little Elm, TX Indpt Sch Dist (PSFG
Insd)..................................... 6.750 08/15/29 544,710
4,625 Little Elm, TX Indpt Sch Dist (Prerefunded
@ 08/15/05) (PSFG Insd)................... 6.750 08/15/29 4,937,234
1,000 Matagorda Cnty, TX Navig Dist No 1 Rev
Coll Centerpoint Energy Proj Rfdg
(Variable Rate Coupon).................... 5.600 03/01/27 999,020
1,500 Metropolitan Hlth Fac Dev Corp TX Wilson N
Jones Mem Hosp Proj....................... 7.250 01/01/31 1,415,415
5,000 North Cent TX Hlth Fac Dev Hosp Childrens
Med Ctr Dallas (AMBAC Insd)............... 5.250 08/15/32 5,081,550
5,000 San Antonio, TX Elec & Gas Sys Rfdg....... 5.375 02/01/19 5,335,200
2,000 San Antonio, TX Elec & Gas Sys Rfdg....... 5.375 02/01/20 2,114,000
</Table>
14 See Notes to Financial Statements
VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
TEXAS (CONTINUED)
$ 2,000 Tarrant Cnty, TX Jr College Dist.......... 5.050% 02/15/10 $ 2,127,160
1,000 Trinity River Auth TX Rev Tarrant Cnty Wtr
Proj Impt & Rfdg (MBIA Insd).............. 5.500 02/01/21 1,073,490
-------------
54,084,601
-------------
UTAH 0.8%
2,380 Mountain Regl Wtr Spl Svc Dist Rfdg (MBIA
Insd)..................................... 5.000 12/15/33 2,370,742
-------------
WASHINGTON 9.0%
3,750 Chelan Cnty, WA Pub Util Dist No. 001 Cons
Rev Chelan Hydro Ser A (AMT) (MBIA
Insd)..................................... 5.600 01/01/36 3,882,338
2,500 Energy Northwest WA Elec Rev Proj No 3 Ser
A Rfdg (FSA Insd)......................... 5.500 07/01/18 2,696,050
5,000 Energy Northwest WA Elec Rev Proj No 3 Ser
B Rfdg (FSA Insd)......................... 6.000 07/01/16 5,633,950
1,400 King Cnty, WA Hsg Auth Hsg Rev Pooled Sr
Ser A Rfdg................................ 6.700 03/01/15 1,449,098
2,120 Seattle, WA Muni Lt & Pwr Rev............. 5.625 12/01/17 2,266,386
3,000 Spokane, WA Pub Fac Dist Hotel Motel &
Sales Use Tax (MBIA Insd)................. 5.250 09/01/33 3,069,060
4,750 Tacoma, WA Elec Sys Rev Ser A Rfdg (FSA
Insd)..................................... 5.750 01/01/14 5,291,880
1,500 Tacoma, WA Elec Sys Rev Ser B Rfdg (FSA
Insd)..................................... 5.500 01/01/12 1,668,720
1,000 Thurston & Pierce Cntys, WA (FSA Insd).... 5.000 12/01/20 1,029,020
1,000 Thurston & Pierce Cntys, WA (FSA Insd).... 5.000 12/01/21 1,024,540
-------------
28,011,042
-------------
WEST VIRGINIA 0.7%
40 West Virginia St Hsg Dev Fd Hsg Fin Ser
A......................................... 5.450 11/01/21 40,358
2,000 West Virginia St Hsg Dev Fd Ser A......... 5.550 05/01/17 2,037,760
-------------
2,078,118
-------------
WISCONSIN 1.0%
3,000 Wisconsin St Health & Ed Fac Wheaton
Franciscan Svc Rfdg....................... 5.750 08/15/30 3,107,490
-------------
WYOMING 0.3%
1,000 University WY Univ Rev Fac Impt (FSA
Insd)..................................... 5.500 06/01/18 1,085,110
-------------
</Table>
See Notes to Financial Statements 15
VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
PUERTO RICO 3.9%
$10,000 Puerto Rico Comwlth Hwy & Trans Auth Hwy
Rev Ser Y Rfdg (FSA Insd) (d)............. 6.250% 07/01/21 $ 12,056,600
-------------
TOTAL LONG-TERM INVESTMENTS 159.2%
(Cost $470,251,487)......................................................... 494,724,387
SHORT-TERM INVESTMENTS 1.3%
(Cost $4,100,000)........................................................... 4,100,000
-------------
TOTAL INVESTMENTS 160.5%
(Cost $474,351,487)......................................................... 498,824,387
OTHER ASSETS IN EXCESS OF LIABILITIES 0.6%................................... 2,076,228
PREFERRED SHARES (INCLUDING ACCRUED DISTRIBUTIONS) (61.1%)................... (190,062,572)
-------------
NET ASSETS APPLICABLE TO COMMON SHARES 100.0%................................ $ 310,838,043
=============
</Table>
* Zero coupon bond
(a) Security converts to a fixed coupon rate at a predetermined date.
(b) Security is a "step-up" bond where the coupon increases or steps up at a
predetermined date.
(c) Securities purchased on a when-issued or delayed delivery basis.
(d) All or a portion of these securities have been physically segregated in
connection with open futures contracts.
ACA--American Capital Access
AMBAC--AMBAC Indemnity Corp.
AMT--Alternative Minimum Tax
Connie Lee--Connie Lee Insurance Co.
FGIC--Financial Guaranty Insurance Co.
FSA--Financial Security Assurance Inc.
GNMA--Government National Mortgage Association
LOC--Letter of Credit
MBIA--Municipal Bond Investors Assurance Corp.
PSFG--Permanent School Fund Guaranty
XLCA--XL Capital Assurance Inc.
16 See Notes to Financial Statements
VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
April 30, 2004 (Unaudited)
<Table>
ASSETS:
Total Investments (Cost $474,351,487)....................... $498,824,387
Cash........................................................ 125,151
Receivables:
Interest.................................................. 7,717,774
Investments Sold.......................................... 182,374
Other....................................................... 1,881
------------
Total Assets............................................ 506,851,567
------------
LIABILITIES:
Payables:
Investments Purchased..................................... 5,137,888
Investment Advisory Fee................................... 249,288
Income Distributions--Common Shares....................... 83,966
Variation Margin on Futures............................... 72,328
Administrative Fee........................................ 20,774
Other Affiliates.......................................... 14,379
Trustees' Deferred Compensation and Retirement Plans........ 264,098
Accrued Expenses............................................ 108,231
------------
Total Liabilities....................................... 5,950,952
Preferred Shares (including accrued distributions).......... 190,062,572
------------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $310,838,043
============
NET ASSET VALUE PER COMMON SHARE ($310,838,043 divided by
19,106,785 shares outstanding)............................ $ 16.27
============
NET ASSETS CONSIST OF:
Common Shares ($.01 par value with an unlimited number of
shares authorized, 19,106,785 shares issued and
outstanding).............................................. $ 191,068
Paid in Surplus............................................. 282,026,578
Net Unrealized Appreciation................................. 25,406,477
Accumulated Undistributed Net
Investment Income........................................... 2,854,129
Accumulated Net Realized Gain............................... 359,791
------------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $310,838,043
============
PREFERRED SHARES
($.01 par value, authorized 100,000,000 shares, 7,600 issued
with liquidation preference of $25,000 per share)......... $190,000,000
============
NET ASSETS INCLUDING PREFERRED SHARES....................... $500,838,043
============
</Table>
See Notes to Financial Statements 17
VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST
FINANCIAL STATEMENTS continued
Statement of Operations
For the Six Months Ended April 30, 2004 (Unaudited)
<Table>
INVESTMENT INCOME:
Interest.................................................... $12,912,314
-----------
EXPENSES:
Investment Advisory Fee..................................... 1,534,072
Preferred Share Maintenance................................. 261,654
Administrative Fee.......................................... 127,839
Trustees' Fees and Related Expenses......................... 64,869
Legal....................................................... 26,132
Custody..................................................... 18,908
Other....................................................... 124,428
-----------
Total Expenses........................................ 2,157,902
-----------
NET INVESTMENT INCOME....................................... $10,754,412
===========
REALIZED AND UNREALIZED GAIN/LOSS:
Realized Gain/Loss:
Investments............................................... $ 1,676,441
Futures................................................... (2,510,710)
-----------
Net Realized Loss........................................... (834,269)
-----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 31,126,048
-----------
End of the Period:
Investments............................................. 24,472,900
Futures................................................. 933,577
-----------
25,406,477
-----------
Net Unrealized Depreciation During the Period............... (5,719,571)
-----------
NET REALIZED AND UNREALIZED LOSS............................ $(6,553,840)
===========
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS..................... $ (975,913)
===========
NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM
OPERATIONS................................................ $ 3,224,659
===========
</Table>
18 See Notes to Financial Statements
VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST
FINANCIAL STATEMENTS continued
Statements of Changes in Net Assets (Unaudited)
<Table>
<Caption>
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2004 OCTOBER 31, 2003
-----------------------------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income.................................... $ 10,754,412 $ 22,523,101
Net Realized Gain/Loss................................... (834,269) 3,337,396
Net Unrealized Depreciation During the Period............ (5,719,571) (3,467,592)
Distributions to Preferred Shareholders:
Net Investment Income.................................. (841,070) (2,002,125)
Net Realized Gain...................................... (134,843) -0-
------------ ------------
Change in Net Assets Applicable to Common Shares from
Operations............................................. 3,224,659 20,390,780
Distributions to Common Shareholders:
Net Investment Income.................................. (10,527,382) (21,207,192)
Net Realized Gain...................................... (1,408,097) -0-
------------ ------------
NET CHANGE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM
INVESTMENT ACTIVITIES.................................. (8,710,820) (816,412)
NET ASSETS APPLICABLE TO COMMON SHARES:
Beginning of the Period.................................. 319,548,863 320,365,275
------------ ------------
End of the Period (Including accumulated undistributed
net investment income of $2,854,129 and $3,468,169,
respectively).......................................... $310,838,043 $319,548,863
============ ============
</Table>
See Notes to Financial Statements 19
VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST
FINANCIAL HIGHLIGHTS (UNAUDITED)
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE
TRUST OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
<Table>
<Caption>
SIX MONTHS
ENDED
APRIL 30, -------------------
2004 2003 2002 (a)
---------------------------------
NET ASSET VALUE, BEGINNING OF THE PERIOD.................. $ 16.72 $ 16.77 $ 16.80
------- ------- -------
Net Investment Income................................... .56 1.17 1.21
Net Realized and Unrealized Gain/Loss................... (.34) (.01) (.05)
Common Share Equivalent of Distributions Paid to
Preferred Shareholders:
Net Investment Income................................. (.04) (.10) (.14)
Net Realized Gain..................................... (.01) -0- -0-
------- ------- -------
Total from Investment Operations.......................... .17 1.06 1.02
Distributions Paid to Common Shareholders:
Net Investment Income................................. (.55) (1.11) (1.05)
Net Realized Gain..................................... (.07) -0- -0-
------- ------- -------
NET ASSET VALUE, END OF THE PERIOD........................ $ 16.27 $ 16.72 $ 16.77
======= ======= =======
Common Share Market Price at End of the Period............ $ 14.51 $ 16.20 $ 15.46
Total Return (b).......................................... -6.94%* 12.30% 15.28%
Net Assets Applicable to Common Shares at End of the
Period (In millions).................................... $ 310.8 $ 319.5 $ 320.4
Ratio of Expenses to Average Net Assets Applicable to
Common Shares (c)....................................... 1.34% 1.32% 1.46%
Ratio of Net Investment Income to Average Net Assets
Applicable to Common Shares (c)......................... 6.67% 6.99% 7.26%
Portfolio Turnover........................................ 14%* 27% 40%
SUPPLEMENTAL RATIOS:
Ratio of Expenses to Average Net Assets Including
Preferred Shares (c).................................... .84% .83% .91%
Ratio of Net Investment Income to Average Net Assets
Applicable to Common Shares (d)......................... 6.15% 6.37% 6.40%
SENIOR SECURITIES:
Total Preferred Shares Outstanding........................ 7,600 7,600 7,600
Asset Coverage Per Preferred Share (e).................... $65,900 $67,049 $67,170
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>
* Non-Annualized
(a)As required, effective November 1, 2001, the Trust has adopted the provisions
of the AICPA Audit and Accounting Guide for Investment Companies and began
accreting market discount on fixed income securities. The effect of this
change for the year ended October 31, 2002 was to increase net investment
income per share by $.02, decrease net realized and unrealized gains and
losses per share by $.02 and increase the ratio of net investment income to
average net assets applicable to common shares by .11%. Per share, ratios,
and supplemental data for periods prior to October 31, 2002 have not been
restated to reflect this change in presentation.
(b)Total return assumes an investment at the common share market price at the
beginning of the period indicated, reinvestment of all distributions for the
period in accordance with the Trust's dividend reinvestment plan, and sale of
all shares at the closing common share market price at the end of the period
indicated.
(c)Ratios do not reflect the effect of dividend payments to preferred
shareholders.
(d)Ratios reflect the effect of dividend payments to preferred shareholders.
(e)Calculated by subtracting the Trust's total liabilities (not including the
preferred shares) from the Trust's total assets and dividing this by the
number of preferred shares outstanding.
20
<Table>
<Caption>
YEAR ENDED OCTOBER 31,
- -----------------------------------------------------------------------------------------
2001 2000 1999 1998 1997 1996 1995 1994
- -----------------------------------------------------------------------------------------
$ 15.52 $ 14.87 $ 16.93 $ 16.35 $ 15.68 $ 15.61 $ 13.99 $ 17.18
------- -------- -------- -------- -------- -------- -------- --------
1.23 1.24 1.22 1.25 1.26 1.29 1.33 1.35
1.18 .68 (2.06) .59 .72 .16 1.70 (3.15)
(.34) (.40) (.32) (.35) (.35) (.36) (.39) (.28)
-0- -0- -0- -0- -0- -0- -0- (.02)
------- -------- -------- -------- -------- -------- -------- --------
2.07 1.52 (1.16) 1.49 1.63 1.09 2.64 (2.10)
(.79) (.87) (.90) (.91) (.96) (1.02) (1.02) (1.02)
-0- -0- -0- -0- -0- -0- -0- (.07)
------- -------- -------- -------- -------- -------- -------- --------
$ 16.80 $ 15.52 $ 14.87 $ 16.93 $ 16.35 $ 15.68 $ 15.61 $ 13.99
======= ======== ======== ======== ======== ======== ======== ========
$ 14.35 $12.9375 $12.9375 $15.8125 $15.0625 $ 14.75 $ 14.375 $ 12.75
17.27% 6.86% -13.16% 11.33% 8.96% 9.88% 21.06% -14.17%
$ 320.9 $ 296.5 $ 284.1 $ 323.4 $ 312.5 $ 299.7 $ 298.3 $ 267.3
1.61% 1.75% 1.66% 1.64% 1.66% 1.72% 1.72% 1.64%
7.56% 8.34% 7.55% 7.48% 7.99% 8.31% 8.94% 8.63%
32% 26% 33% 30% 49% 37% 79% 133%
1.00% 1.05% 1.03% 1.03% 1.02% 1.05% 1.03% 1.00%
5.44% 5.61% 5.56% 5.35% 5.76% 5.99% 6.31% 6.81%
7,600 7,600 7,600 3,800 3,800 3,800 3,800 3,800
$67,225 $ 64,014 $ 62,388 $135,105 $132,234 $128,865 $128,498 $120,355
$25,000 $ 25,000 $ 25,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
$25,000 $ 25,000 $ 25,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
</Table>
See Notes to Financial Statements 21
VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2004 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen Advantage Municipal Income Trust (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 seek to provide a high level of current income exempt from
federal income tax, consistent with preservation of capital. In normal market
conditions, the Trust will invest substantially all of its net assets in
municipal securities rated investment grade at the time of investment. The Trust
commenced investment operations on September 25, 1992. Effective November 30,
2003, the Trust's investment adviser, Van Kampen Investment Advisory Corp.
merged into its affiliate, Van Kampen Asset Management (the "Adviser").
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 its 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 April 30, 2004, there were $5,137,888 of when-issued or
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.
22
VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2004 (UNAUDITED) continued
At April 30, 2004, the cost and related gross unrealized appreciation and
depreciation are as follows:
<Table>
Cost of investments for tax purposes........................ $473,410,762
============
Gross tax unrealized appreciation........................... $ 26,956,855
Gross tax unrealized depreciation........................... (1,543,230)
------------
Net tax unrealized appreciation on investments.............. $ 25,413,625
============
</Table>
E. DISTRIBUTION OF INCOME AND GAINS The Trust declares and pays monthly
dividends from net investment income to common shareholders. Net realized gains,
if any, are distributed annually on a pro rata basis to common and preferred
shareholders. Distributions from net realized gains for book purposes may
include short-term capital gains, which are included as ordinary income for tax
purposes.
The tax character of distributions paid during the year ended October 31,
2003 was as follows:
<Table>
Distributions paid from:
Ordinary income........................................... $522,411
Long-term capital gain.................................... -0-
--------
$522,411
========
</Table>
As of October 31, 2003, the components of distributable earnings on a tax
basis were as follows:
<Table>
Undistributed ordinary income............................... $ 410,372
Undistributed long-term capital gain........................ 1,542,823
</Table>
Net realized gains or losses differ for financial reporting and tax purposes
primarily as a result of the deferral of losses relating to wash sale
transactions.
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of the Trust's Investment Advisory Agreement, the Adviser
provides 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 pays 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. Effective June 1,
2004, the administrative fee was reduced from .05% to .00%.
For the six months ended April 30, 2004, the Trust recognized expenses of
approximately $16,200 representing legal services provided by Skadden, Arps,
Slate, Meagher & Flom LLP, counsel to the Trust, of which a trustee of the Trust
is an affiliated person.
Under separate Accounting Services and Legal Services agreements, the
Adviser provides accounting and legal services to the Trust. The Adviser
allocates the cost of such services to each trust. For the six months ended
April 30, 2004, the Trust recognized expenses of approximately $24,300
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,
on the Statement of Operations.
23
VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2004 (UNAUDITED) continued
Certain officers and trustees of the Trust are also officers and directors
of Van Kampen. The Trust does not compensate its officers or trustees who are
officers of Van Kampen.
The Trust provides deferred compensation and retirement plans for its
trustees who are not officers of Van Kampen. Under the deferred compensation
plan, trustees may elect to defer all or a portion of their compensation to a
later date. Benefits under the retirement plan are payable upon retirement for a
ten-year period and are based upon each trustee's years of service to the Trust.
The maximum annual benefit per trustee under the plan is $2,500.
3. INVESTMENT TRANSACTIONS
During the period, the cost of purchases and proceeds from sales of investments,
excluding short-term investments, were $69,181,907 and $70,267,891,
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 realized gain or loss
is recognized accordingly, except when taking delivery of a security underlying
a futures contract. In this instance, the recognition of gain or loss is
postponed until the disposal of the security underlying the futures contract.
Risks may arise as a result of the potential inability of the counterparties to
meet the terms of their contracts.
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 contracts on U.S. Treasury Bonds
and Notes and typically closes the contract prior to the delivery date. Upon
entering into futures contracts, the Trust maintains, in a segregated account
with its custodian, 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.
24
VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2004 (UNAUDITED) continued
Transactions in futures contracts for the six months ended April 30, 2004,
were as follows:
<Table>
<Caption>
CONTRACTS
Outstanding at October 31, 2003............................. 529
Futures Opened.............................................. 708
Futures Closed.............................................. (916)
----
Outstanding at April 30, 2004............................... 321
====
</Table>
The futures contracts outstanding as of April 30, 2004, and the descriptions
and unrealized appreciation/depreciation are as follows:
<Table>
<Caption>
UNREALIZED
APPRECIATION/
CONTRACTS DEPRECIATION
SHORT CONTRACTS:
U.S. Treasury Notes 10-Year Futures June 2004 (Current
Notional Value of $110,500 per contract).................. 57 $213,821
U.S. Treasury Notes 5-Year Futures June 2004 (Current
Notional Value of $109,938 per contract).................. 264 719,756
--- --------
321 $933,577
=== ========
</Table>
5. PREFERRED SHARES
The Trust has outstanding 7,600 Auction Preferred Shares ("APS") in four series.
Series A, B and C each contain 2,000 shares while Series D contains 1,600
shares. Dividends are cumulative and the dividend rate is reset every 28 days
through an auction process. The average rate in effect on April 30, 2004 was
1.013%. During the six months ended April 30, 2004, the rates ranged from 0.800%
to 1.700%.
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 on 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.
25
VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST
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
26
VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST
DIVIDEND REINVESTMENT PLAN continued
of the Trust's Common Shares, resulting in the acquisition of fewer Common
Shares than if the dividend or distribution had been paid in Common Shares
issued by the Trust. All reinvestments are in full and fractional Common Shares
and are carried to three decimal places.
Experience under the Plan may indicate that changes are desirable.
Accordingly, the Trust reserves the right to amend or terminate the Plan as
applied to any dividend or distribution paid subsequent to written notice of the
changes sent to all Common Shareholders of the Trust at least 90 days before the
record date for the dividend or distribution. The Plan also may be amended or
terminated by the Plan Agent by at least 90 days written notice to all Common
Shareholders of the Trust.
COSTS OF THE PLAN
The Plan Agent's fees for the handling of the reinvestment of dividends and
distributions will be paid by the Trust. However, each participant will pay a
pro rata share of brokerage commissions incurred with respect to the Plan
Agent's open market purchases in connection with the reinvestment of dividends
and distributions. No other charges will be made to participants for reinvesting
dividends or capital gains distributions, except for certain brokerage
commissions, as described above.
TAX IMPLICATIONS
You will receive tax information annually for your personal records and to
help you prepare your federal income tax return. The automatic reinvestment of
dividends and capital gains distributions does not relieve you of any income tax
which may be payable on dividends or distributions.
RIGHT TO WITHDRAW
Plan participants may withdraw at any time by calling 1-800-341-2929 or by
writing State Street Bank and Trust Company, P.O. Box 8200, Boston, MA
02266-8200. If you withdraw, you will receive, without charge, a share
certificate issued in your name for all full Common Shares credited to your
account under the Plan and a cash payment will be made for any fractional Common
Share credited to your account under the Plan. You may again elect to
participate in the Plan at any time by calling 1-800-341-2929 or writing to the
Trust at:
Van Kampen Funds Inc.
Attn: Closed-End Funds
2800 Post Oak Blvd.
Houston, TX 77056
27
VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST
BOARD OF TRUSTEES AND IMPORTANT ADDRESSES
BOARD OF TRUSTEES
DAVID C. ARCH
J. MILES BRANAGAN
JERRY D. CHOATE
ROD DAMMEYER
LINDA HUTTON HEAGY
R. CRAIG KENNEDY
HOWARD J KERR
MITCHELL M. MERIN*
JACK E. NELSON
RICHARD F. POWERS, III*
HUGO F. SONNENSCHEIN
WAYNE W. WHALEN* - Chairman
SUZANNE H. WOOLSEY
INVESTMENT ADVISER
VAN KAMPEN ASSET MANAGEMENT
1221 Avenue of the Americas
New York, NY 10020
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 LLP
333 West Wacker Drive
Chicago, Illinois 60606
INDEPENDENT AUDITORS
DELOITTE & TOUCHE LLP
180 North Stetson Avenue
Chicago, Illinois 60601
* "Interested persons" of the Trust, as defined in the Investment Company Act
of 1940, as amended.
28
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 Asset Management, Van
Kampen Advisors 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)2004 Van Kampen
Funds Inc. All rights reserved.
Member NASD/SIPC.
VKA SAR 6/04 RN04-00753P-Y04/04
Item 2. Code of Ethics.
Not applicable for semi-annual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable for semi-annual reports.
Item 6. [Reserved.]
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
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.
(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) Code of Ethics-- Not applicable for semi-annual reports.
(b) (1) A certification for the Principal Executive Officer of the registrant is
attached hereto as part of EX-99.CERT.
(b) (2) A certification for the Principal Financial Officer of the registrant is
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 Advantage Municipal Income Trust
By: /s/ Ronald E. Robison
------------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: June 22, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed by the following
persons on behalf of the registrant and in the capacities and on the dates
indicated.
By: /s/ Ronald E. Robison
------------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: June 22, 2004
By: /s/ John L. Sullivan
------------------------
Name: John L. Sullivan
Title: Principal Financial Officer
Date: June 22, 2004