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 811-6369
Van Kampen Florida Quality Municipal 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. Reports to Shareholders.
The Trust's semi-annual 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
Florida Quality Municipal 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
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NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY NOT A DEPOSIT
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</Table>
Performance Summary as of 4/30/04
<Table>
<Caption>
FLORIDA QUALITY MUNICIPAL TRUST
SYMBOL: VFM
- ------------------------------------------------------
AVERAGE ANNUAL BASED ON BASED ON
TOTAL RETURNS NAV MARKET PRICE
Since Inception (09/27/91) 7.45% 6.49%
10-year 6.91 6.03
5-year 6.50 4.00
1-year 1.77 0.68
6-month 1.23 0.70
- ------------------------------------------------------
</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 Florida Municipal Bond Index is a broad-based statistical
composite of Florida 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 Florida Quality Municipal Trust is managed by the adviser's Municipal
Fixed Income team.(1) Current members include Thomas Byron, Vice President;
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.
Florida's economy recovered strongly during the six-month period. Rapid growth
stemmed from continued economic broadening and diversification from
(1)Team members may change without notice at any time.
2
an economy focused on agriculture and limited tourism to one depending on
service and trade, including insurance, banking, exporting and expanded tourism.
The state unemployment rate sank to 4.6 percent, well below the national average
of 5.6 percent. Debt levels were moderate but increasing. In keeping with the
nationwide trend, issuance during the first four months of 2004 was well below
the same period one year earlier.
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 an NAV basis, the trust just slightly
underperformed its benchmark, the Lehman Brothers Florida Municipal Bond Index,
but underperformed more so on a market-price basis. (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. As yields rose
during the period, the prices of bonds declined. The trust's use of leverage
magnified this negative movement, leading to a slightly lower total return at
NAV than that of its 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. (The portfolio had 87 percent
exposure to bonds rated AA/Aa or higher at the end of the period.) Municipal
TOTAL RETURN FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2004
<Table>
<Caption>
- -------------------------------------------------------------
BASED ON BASED ON LEHMAN BROTHERS FLORIDA
NAV MARKET PRICE MUNICIPAL BOND INDEX
1.23% 0.70% 1.29%
- -------------------------------------------------------------
</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
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.
We 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 our sales of bonds in the five-year segment of
the yield curve, which our analysis showed to be vulnerable to rising rates. We
also reinvested the proceeds of housing and hospital bonds that were called
during the period into securities that we believed had more promising total-
return characteristics.
The trust's portfolio remained well diversified, with its holdings spread across
most 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
public education, water and sewer, and general purpose.
<Table>
TOP 5 SECTORS AS OF 4/30/04 RATINGS ALLOCATION AS OF 4/30/04
Public Education 22.5% AAA/Aaa 77.9%
Water & Sewer 17.8 AA/Aa 8.8
General Purpose 12.9 A/A 9.0
Transportation 10.3 BBB/Baa 3.6
Health Care 9.9 Non-Rated 0.7
</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
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 interest-rate 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.
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 FLORIDA QUALITY MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED)
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
MUNICIPAL BONDS 145.4%
FLORIDA 140.5%
$1,000 Broward Cnty, FL Hsg Fin Auth Multi-Family Hsg
Rev Pembroke Pk Apts Proj (AMT)................. 5.650% 10/01/28 $ 1,001,440
1,000 Broward Cnty, FL Sch Brd Ctf Ser A (FSA Insd)... 5.000 07/01/22 1,019,750
1,500 Broward Cnty, FL Wtr & Swr Util Rfdg (MBIA
Insd)........................................... 5.000 10/01/21 1,548,285
1,000 Canaveral, FL Port Auth Rev Port Impt Ser B Rfdg
(FGIC Insd)..................................... 5.000 06/01/17 1,046,300
500 Capital Tr Agy FL Rev Ft Lauderdale Proj
(AMT)........................................... 5.750 01/01/32 463,960
750 Cocoa, FL Wtr & Swr Rev Impt (Prerefunded @
10/01/07) (FGIC Insd)........................... 5.875 10/01/26 843,420
1,500 Collier Cnty, FL Sch Brd Ctf (FSA Insd)......... 5.375 02/15/17 1,612,380
750 Dade Cnty, FL Ed Fac Auth Rev Exchanged From
Univ of Miami Ser B (MBIA Insd)................. 5.750 04/01/20 805,312
1,035 Dade Cnty, FL Spl Oblig Cap Apprec Bd Ser B Rfdg
(Prerefunded @ 10/01/08) (AMBAC Insd)........... * 10/01/28 261,689
500 Dade Cnty, FL Wtr & Swr Sys Rev (FGIC Insd)..... 5.250 10/01/26 509,055
2,640 Daytona Beach, FL Util Sys Rev Ser D Rfdg (FSA
Insd)........................................... 5.250 11/15/16 2,836,205
1,125 Deltona, FL Util Sys Rev (MBIA Insd)............ 5.250 10/01/22 1,181,666
550 Escambia Cnty, FL Hlth Fac Auth Rev (AMBAC
Insd)........................................... 5.950 07/01/20 574,552
690 Florida Hsg Fin Agy Homeownership Mtg (AMT)..... 8.595 11/01/18 716,675
1,000 Florida Hsg Fin Agy Hsg Willow Lake Apts Ser J-1
(AMT) (AMBAC Insd).............................. 5.350 07/01/27 1,010,530
565 Florida Hsg Fin Corp Rev Homeowner Mtg Ser 4
(AMT) (FSA Insd)................................ 6.250 07/01/22 587,351
1,000 Florida Hsg Fin Corp Rev Hsg Wentworth II Apts
Ser A (AMBAC Insd).............................. 5.375 11/01/29 1,012,790
960 Florida Muni Ln Council Rev Ser A (MBIA Insd)... 5.250 11/01/17 1,026,144
1,080 Florida Muni Ln Council Rev Ser B (MBIA Insd)... 5.750 11/01/13 1,211,112
615 Florida Muni Ln Council Rev Ser B (MBIA Insd)... 5.750 11/01/15 685,928
1,500 Florida Muni Ln Council Rev Ser B (MBIA Insd)... 5.750 11/01/29 1,615,155
5,125 Florida Ports Fin Comm Rev St Trans Tr Fd
Intermodal Pgm (AMT) (FGIC Insd)................ 5.500 10/01/29 5,227,910
9,775 Florida St Brd of Ed Cap Outlay Pub Ed Ser D
Rfdg............................................ 5.750 06/01/22 10,651,817
1,500 Florida St Brd of Ed Lottery Rev Ser A (FGIC
Insd)........................................... 5.250 07/01/17 1,594,260
3,500 Florida St Brd of Ed Lottery Rev Ser A (FGIC
Insd)........................................... 5.500 07/01/17 3,805,130
410 Florida St Brd of Regt Hsg Rev (MBIA Insd)...... 5.750 07/01/14 458,651
2,735 Florida St Brd of Regt Hsg Rev Univ FL (FGIC
Insd)........................................... 5.500 07/01/28 2,869,726
2,360 Florida St Correctional Privatization Commn Ctf
Partn (MBIA Insd)............................... 5.375 08/01/15 2,554,511
</Table>
6 See Notes to Financial Statements
VAN KAMPEN FLORIDA QUALITY MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
FLORIDA (CONTINUED)
$1,450 Florida St Dept Envrnmtl FL Forever Ser A (MBIA
Insd)........................................... 5.375% 07/01/17 $ 1,575,454
1,500 Florida St Div Bd Fin Dept Gen Svc Rev Dept
Envrnmtl Preservtn 2000-A (AMBAC Insd).......... 5.000 07/01/11 1,606,575
2,000 Florida St Div Bd Fin Dept Gen Svc Rev Dept
Envrnmtl Protn Preservtn 2000-A (FGIC Insd)..... 5.250 07/01/12 2,168,060
750 Florida St Div Bd Fin Dept Gen Svc Rev Dept
Envrnmtl Protn Preservtn 2000-B (FSA Insd)...... 5.500 07/01/08 833,040
1,000 Florida St Muni Pwr Agy Rev Stanton Proj Rfdg
(FSA Insd)...................................... 5.500 10/01/14 1,100,520
1,475 Florida St Tpk Auth Tpk Rev Dept of Trans Ser
B............................................... 5.000 07/01/30 1,473,835
1,635 Fort Myers, FL Util Rev Ser A Rfdg (FGIC
Insd)........................................... 5.500 10/01/24 1,727,492
1,245 Gainesville, FL Util Sys Rev Ser A (FSA Insd)... 5.250 10/01/18 1,334,279
1,000 Gulf Breeze, FL Rev Loc Govt (Variable Rate
Coupon) (FGIC Insd)............................. 5.800 12/01/20 1,109,330
1,500 Highlands Cnty, FL Hlth Fac Auth Rev Hosp
Adventist/Sunbelt Ser A......................... 6.000 11/15/31 1,575,225
1,000 Highlands Cnty, FL Hlth Fac Hosp Adventist Hlth
Sys Ser D....................................... 5.375 11/15/35 1,003,300
500 Hillsborough Cnty, FL Capacity Assmt Rev Spl
(FSA Insd)...................................... 5.000 03/01/16 523,075
1,000 Hillsborough Cnty, FL Indl Dev Auth Hosp Rev
Tampa Gen Hosp Proj Ser B....................... 5.250 10/01/34 969,390
2,000 Hillsborough Cnty, FL Sch Dist (AMBAC Insd)..... 5.375 10/01/19 2,142,620
2,000 Hollywood, FL Wtr & Swr Rev Impt & Rfdg (FSA
Insd)........................................... 5.000 10/01/21 2,064,380
1,085 Jacksonville, FL Excise Tax Rev Ser B (AMBAC
Insd)........................................... 5.375 10/01/20 1,159,898
1,000 Jacksonville, FL Sales Tax Rev Better
Jacksonville (MBIA Insd)........................ 5.250 10/01/19 1,064,540
2,000 Jacksonville, FL Sales Tax Rev Better
Jacksonville (MBIA Insd)........................ 5.250 10/01/20 2,119,580
1,000 Jacksonville, FL Sales Tax Rev Impt Loc Govt
(FGIC Insd)..................................... 5.375 10/01/18 1,077,790
2,000 Jea, FL Wtr & Swr Sys Rev Ser A (FGIC Insd)..... 5.000 10/01/20 2,070,580
1,000 Jea, FL Wtr & Swr Sys Rev Ser A (FGIC Insd)..... 5.000 10/01/21 1,032,190
2,250 Jea, FL Wtr & Swr Sys Rev Ser A (MBIA Insd)..... 5.375 10/01/30 2,313,945
1,000 Lake Cnty, FL Sch Brd Ctf Part (AMBAC Insd)..... 5.375 07/01/15 1,082,280
1,000 Lakeland, FL Hosp Sys Rev Lakeland Regl Hlth
Sys............................................. 5.500 11/15/32 1,005,580
1,685 Lee Cnty, FL Arpt Rev Ser B (FSA Insd).......... 5.750 10/01/33 1,786,454
235 Lee Cnty, FL Hsg Fin Auth Single Family Mtg Rev
Multi-Cnty Pgm Ser A (AMT) (GNMA
Collateralized)................................. 7.450 09/01/27 244,029
500 Leesburg, FL Hosp Rev Leesburg Regl Med Ctr
Proj............................................ 5.500 07/01/32 493,610
</Table>
See Notes to Financial Statements 7
VAN KAMPEN FLORIDA QUALITY MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
FLORIDA (CONTINUED)
$1,190 Manatee Cnty, FL Pub Util Rev Impt & Rfdg (MBIA
Insd)........................................... 5.125% 10/01/19 $ 1,250,750
1,760 Miami Beach, FL (MBIA Insd)..................... 5.000 09/01/19 1,836,613
1,200 Miami Beach, FL Stormwtr Rev (FGIC Insd)........ 5.750 09/01/14 1,344,300
1,500 Miami-Dade Cnty, FL Aviation Rev Miami Intl Arpt
(AMT) (FGIC Insd)............................... 5.375 10/01/32 1,529,835
1,000 Miami-Dade Cnty, FL Aviation Rev Miami Intl Arpt
Ser B (FGIC Insd)............................... 5.500 10/01/16 1,078,700
2,000 Miami-Dade Cnty, FL Aviation Rev Miami Intl Arpt
Ser B (FGIC Insd)............................... 5.750 10/01/29 2,124,140
1,000 Miami-Dade Cnty, FL Aviation Ser A (AMT) (FSA
Insd)........................................... 5.000 10/01/33 978,100
2,000 Miami-Dade Cnty, FL Ed Fac Auth Rev Ser A (AMBAC
Insd)........................................... 5.750 04/01/29 2,151,820
500 Miami-Dade Cnty, FL Sch Brd Ser A (Prerefunded @
05/01/11) (MBIA Insd)........................... 5.000 05/01/19 549,460
2,000 Miami-Dade Cnty, FL Sch Brd Ser C (FSA Insd).... 5.500 10/01/15 2,181,500
5,000 Miramar, FL Wastewtr Impt Assmt Rev (Prerefunded
@ 10/01/04) (FGIC Insd)......................... 6.750 10/01/25 5,165,850
2,000 North Broward, FL Hosp Dist Rev Impt............ 6.000 01/15/31 2,081,680
1,000 Orange Cnty, FL Hlth Fac Auth Rev Hosp Regl
Hlthcare Sys Ser E.............................. 6.000 10/01/26 1,038,890
1,000 Orange Cnty, FL Hsg Fin Auth Multi-Family Rev
Mtg Hands Inc Proj Ser A (Acquired 06/19/95,
Cost $1,000,000) (a)............................ 7.000 10/01/25 1,052,130
1,000 Osceola Cnty, FL Trans Rev Impt Osceola Pkwy
Proj Rfdg (MBIA Insd)........................... 5.000 04/01/22 1,027,120
1,000 Palm Beach Cnty, FL Pub Impt Rev Convention Ctr
Proj (Prerefunded @ 11/01/11) (FGIC Insd)....... 5.125 11/01/30 1,104,890
1,000 Palm Beach Cnty, FL Sch Brd Ctf Ser A
(Prerefunded @ 08/01/10) (FGIC Insd)............ 5.875 08/01/21 1,152,630
1,000 Palm Beach Cnty, FL Sch Brd Ctf Ser B (AMBAC
Insd)........................................... 5.000 08/01/25 1,005,630
1,000 Palm Beach Cnty, FL Sch Brd Ctf Ser E Rfdg
(AMBAC Insd).................................... 5.250 08/01/11 1,105,450
1,500 Palm Beach Cnty, FL Sch Brd Ser D (FSA Insd).... 5.250 08/01/18 1,596,405
1,000 Palm Coast, FL Util Sys Rev (MBIA Insd)......... 5.250 10/01/20 1,059,790
1,890 Pembroke Pines, FL Charter Sch Ser A (MBIA
Insd)........................................... 5.375 07/01/16 2,040,784
1,000 Pembroke Pines, FL Charter Sch Ser A (MBIA
Insd)........................................... 5.000 07/01/31 1,000,260
1,500 Pensacola, FL Arpt Rev Ser A Rfdg (AMT) (MBIA
Insd)........................................... 6.000 10/01/12 1,649,400
1,565 Pensacola, FL Arpt Rev Ser A Rfdg (AMT) (MBIA
Insd)........................................... 6.125 10/01/18 1,741,986
</Table>
8 See Notes to Financial Statements
VAN KAMPEN FLORIDA QUALITY MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
FLORIDA (CONTINUED)
$ 500 Port Saint Lucie, FL Loc Opt Gas Tax Rev Impt
(Prerefunded @ 09/01/06) (FGIC Insd)............ 5.500% 03/01/15 $ 538,295
1,450 Port Saint Lucie, FL Util Rev (MBIA Insd)....... 5.000 09/01/22 1,487,439
1,000 Port Saint Lucie, FL Util Rev Impt Ser A Rfdg
(MBIA Insd)..................................... 5.125 09/01/27 1,010,340
1,000 Reedy Creek Impt Dist FL Ser A (MBIA Insd)...... 5.000 06/01/21 1,033,550
2,265 Reedy Creek Impt Dist FL Ser A (MBIA Insd)...... 5.000 06/01/23 2,310,187
1,000 Saint Lucie Cnty, FL Sch Brd Ctf Ser A (FSA
Insd)........................................... 5.000 07/01/21 1,025,210
1,000 Saint Lucie Cnty, FL Sch Brd Ctf Ser A (FSA
Insd)........................................... 5.000 07/01/23 1,013,660
1,500 Saint Johns Cnty, FL Rev Trans Impt (AMBAC
Insd)........................................... 5.000 10/01/23 1,528,725
1,000 Seminole Cnty, FL Sales Tax Rev (FGIC Insd)..... 5.000 10/01/31 1,000,300
500 South Lake Cnty Hosp Dist FL South Lake Hosp
Inc............................................. 6.375 10/01/28 505,960
1,500 South Miami, FL Hlth Fac Baptist Hlth (AMBAC
Insd)........................................... 5.250 11/15/33 1,525,665
1,000 Tallahassee, FL Hlth Fac Rev Tallahassee Mem
Hlthcare Proj................................... 6.375 12/01/30 974,960
1,800 Tampa, FL Hosp Rev Cap Impt H Lee Moffitt Ser
A............................................... 5.750 07/01/29 1,839,564
2,190 Tampa, FL Sales Tax Rev Ser A (AMBAC Insd)...... 5.375 10/01/16 2,369,317
1,000 Village Ctr Cmnty Dev Dist FL Ser A (MBIA
Insd)........................................... 5.200 11/01/25 1,024,500
1,000 Village Ctr Cmnty Dev Dist FL Util Rev (MBIA
Insd)........................................... 5.250 10/01/23 1,039,430
1,000 Volusia Cnty, FL Ed Fac Auth Rev Ed Fac Embry
Riddle Aero Ser A............................... 5.750 10/15/29 973,270
1,500 West Orange Hlthcare Dist FL Ser A.............. 5.800 02/01/31 1,527,765
1,270 West Palm Beach, FL............................. 5.250 03/01/16 1,349,121
------------
148,314,126
------------
PUERTO RICO 3.3%
2,000 Puerto Rico Comwlth Hwy & Tran Auth Hwy Rev Ser
W Rfdg.......................................... 5.500 07/01/15 2,197,000
1,250 Puerto Rico Elec Pwr Auth Pwr Rev Ser T
(Prerefunded @ 07/01/04)........................ 6.375 07/01/24 1,285,975
------------
3,482,975
------------
</Table>
See Notes to Financial Statements 9
VAN KAMPEN FLORIDA QUALITY MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
U. S. VIRGIN ISLANDS 1.6%
$1,500 Virgin Islands Pub Fin Auth Rev Gross Rcpt Taxes
Ln Nt Ser A..................................... 6.375% 10/01/19 $ 1,670,505
------------
TOTAL LONG-TERM INVESTMENTS 145.4%
(Cost $145,891,422)....................................................... 153,467,606
SHORT-TERM INVESTMENT 0.5%
(Cost $500,000)........................................................... 500,000
------------
TOTAL INVESTMENTS 145.9%
(Cost $146,391,422)....................................................... 153,967,606
OTHER ASSETS IN EXCESS OF LIABILITIES 1.5%................................. 1,550,270
PREFERRED SHARES (INCLUDING ACCRUED DISTRIBUTIONS) (47.4%)................. (50,012,947)
------------
NET ASSETS APPLICABLE TO COMMON SHARES 100.0%.............................. $105,504,929
============
</Table>
* Zero coupon bond
(a) These securities are restricted and may be resold only in transactions
exempt from registration which are normally those transactions with
qualified institutional buyers. Restricted securities comprise 1.0% of net
assets applicable to common shares.
AMBAC--AMBAC Indemnity Corp.
AMT--Alternative Minimum Tax
FGIC--Financial Guaranty Insurance Co.
FSA--Financial Security Assurance Inc.
GNMA--Government National Mortgage Association
MBIA--Municipal Bond Investors Assurance Corp.
10 See Notes to Financial Statements
VAN KAMPEN FLORIDA QUALITY MUNICIPAL TRUST
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
April 30, 2004 (Unaudited)
<Table>
ASSETS:
Total Investments (Cost $146,391,422)....................... $153,967,606
Cash........................................................ 47,329
Receivables:
Interest.................................................. 1,834,149
Investments Sold.......................................... 30,000
Other....................................................... 686
------------
Total Assets............................................ 155,879,770
------------
LIABILITIES:
Payables:
Investment Advisory Fee................................... 77,520
Income Distributions--Common Shares....................... 25,949
Other Affiliates.......................................... 7,619
Administrative Fee........................................ 6,460
Trustees' Deferred Compensation and Retirement Plans........ 203,338
Accrued Expenses............................................ 41,008
------------
Total Liabilities....................................... 361,894
Preferred Shares (including accrued distributions).......... 50,012,947
------------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $105,504,929
============
NET ASSETS VALUE PER COMMON SHARE ($105,504,929 divided by
6,519,397 shares outstanding)............................. $ 16.18
============
NET ASSETS CONSIST OF:
Common Shares ($.01 par value with an unlimited number of
shares authorized, 6,519,397 shares issued and
outstanding).............................................. $ 65,194
Paid in Surplus............................................. 96,541,593
Net Unrealized Appreciation................................. 7,576,184
Accumulated Undistributed Net Investment Income............. 894,787
Accumulated Net Realized Gain............................... 427,171
------------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $105,504,929
============
PREFERRED SHARES ($.01 par value, authorized 100,000,000
shares, 2,000 issued with liquidation preference of
$25,000 per share)........................................ $ 50,000,000
============
NET ASSETS INCLUDING PREFERRED SHARES....................... $155,504,929
============
</Table>
See Notes to Financial Statements 11
VAN KAMPEN FLORIDA QUALITY MUNICIPAL TRUST
FINANCIAL STATEMENTS continued
Statement of Operations
For the Six Months Ended April 30, 2004 (Unaudited)
<Table>
INVESTMENT INCOME:
Interest.................................................... $ 3,924,345
-----------
EXPENSES:
Investment Advisory Fee..................................... 477,643
Preferred Share Maintenance................................. 69,052
Trustees' Fees and Related Expenses......................... 40,860
Administrative Fee.......................................... 39,804
Legal....................................................... 11,604
Custody..................................................... 5,278
Other....................................................... 67,672
-----------
Total Expenses.......................................... 711,913
-----------
NET INVESTMENT INCOME....................................... $ 3,212,432
===========
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Gain........................................... $ 427,817
-----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 9,850,430
End of the Period......................................... 7,576,184
-----------
Net Unrealized Depreciation During the Period............... (2,274,246)
-----------
NET REALIZED AND UNREALIZED LOSS............................ $(1,846,429)
===========
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS..................... $ (272,248)
===========
NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM
OPERATIONS................................................ $ 1,093,755
===========
</Table>
12 See Notes to Financial Statements
VAN KAMPEN FLORIDA QUALITY MUNICIPAL 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.................................... $ 3,212,432 $ 6,455,448
Net Realized Gain........................................ 427,817 1,079,383
Net Unrealized Depreciation During the Period............ (2,274,246) (861,697)
Distributions to Preferred Shareholders:
Net Investment Income.................................. (207,376) (385,085)
Net Realized Gain...................................... (64,872) (171,990)
------------ ------------
Change in Net Assets Applicable to Common Shares from
Operations............................................. 1,093,755 6,116,059
Distributions to Common Shareholders:
Net Investment Income.................................. (3,028,225) (6,007,750)
Net Realized Gain...................................... (1,033,310) (2,291,341)
------------ ------------
NET CHANGE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM
INVESTMENT ACTIVITIES.................................. (2,967,780) (2,183,032)
NET ASSETS APPLICABLE TO COMMON SHARES:
Beginning of the Period.................................. 108,472,709 110,655,741
------------ ------------
End of the Period (Including accumulated undistributed
net investment income of $894,787 and $917,956,
respectively).......................................... $105,504,929 $108,472,709
============ ============
</Table>
See Notes to Financial Statements 13
VAN KAMPEN FLORIDA QUALITY MUNICIPAL 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 YEAR ENDED OCTOBER 31,
APRIL 30, ------------------------------
2004 2003 2002 (a) 2001
-------------------------------------------
NET ASSET VALUE, BEGINNING OF THE PERIOD.......... $ 16.64 $ 16.97 $ 17.06 $ 16.03
------- ------- ------- -------
Net Investment Income........................... .49 .99 1.00 1.12
Net Realized and Unrealized Gain/Loss........... (.29) .04 .17 1.07
Common Share Equivalent of Distributions Paid to
Preferred Shareholders:
Net Investment Income......................... (.03) (.06) (.07) (.24)
Net Realized Gain............................. (.01) (.03) (.06) (.03)
------- ------- ------- -------
Total from Investment Operations.................. .16 .94 1.04 1.92
Distributions Paid to Common Shareholders:
Net Investment Income........................... (.46) (.92) (.89) (.82)
Net Realized Gain............................... (.16) (.35) (.24) (.07)
------- ------- ------- -------
NET ASSET VALUE, END OF THE PERIOD................ $ 16.18 $ 16.64 $ 16.97 $ 17.06
======= ======= ======= =======
Common Share Market Price at End of the Period.... $ 14.45 $ 14.94 $ 14.65 $ 14.65
Total Return (b).................................. 0.70%* 10.86% 7.80% 16.57%
Net Assets Applicable to Common Shares at End of
the Period (In millions)........................ $ 105.5 $ 108.5 $ 110.7 $ 111.2
Ratio of Expenses to Average Net Assets Applicable
to Common Shares (c)............................ 1.30% 1.29% 1.37% 1.58%
Ratio of Net Investment Income to Average Net
Assets Applicable to Common Shares (c).......... 5.87% 5.89% 6.05% 6.72%
Portfolio Turnover................................ 8%* 22% 24% 34%
SUPPLEMENTAL RATIOS:
Ratio of Expenses to Average Net Assets Including
Preferred Shares (c)............................ .89% .89% .94% 1.08%
Ratio of Net Investment Income to Average Net
Assets Applicable to Common Shares (d).......... 5.49% 5.54% 5.63% 5.30%
SENIOR SECURITIES:
Total Preferred Shares Outstanding................ 2,000 2,000 2,000 2,000
Asset Coverage Per Preferred Share (e)............ $77,759 $79,250 $80,351 $80,603
Involuntary Liquidating Preference Per Preferred
Share........................................... $25,000 $25,000 $25,000 $25,000
Average Market Value Per Preferred Share.......... $25,000 $25,000 $25,000 $25,000
</Table>
* Non-Annualized
(a)As required, effective November 1, 2001, the Trust has adopted the provisions
of the AICPA Audit and Accounting Guide for Investment Companies and began
accreting market discount on fixed income securities. The effect of this
change for the year ended October 31, 2002 was to increase net investment
income per share by less than $.01, decrease net realized and unrealized
gains and losses per share by less than $.01 and increase the ratio of net
investment income to average net assets applicable to common shares by .01%.
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.
14
<Table>
<Caption>
TWO
MONTHS
ENDED YEAR ENDED AUGUST 31,
- ----------------------- OCT. 31, ----------------------------------------------------
2000 1999 1998 1998 1997 1996 1995 1994
- -----------------------------------------------------------------------------------------
$ 15.63 $ 17.21 $ 17.19 $ 16.83 $ 16.44 $ 16.62 $ 16.28 $ 17.39
------- -------- -------- -------- -------- -------- -------- --------
1.17 1.21 .20 1.23 1.25 1.23 1.26 1.28
.46 (1.59) .02 .36 .44 (.08) .50 (1.10)
(.31) (.25) (.04) (.27) (.27) (.28) (.29) (.20)
-0- -0- -0- -0- -0- -0- (.01) (.01)
------- -------- -------- -------- -------- -------- -------- --------
1.32 (.63) .18 1.32 1.42 .87 1.46 (.03)
(.92) (.95) (.16) (.96) (1.03) (1.05) (1.05) (1.05)
-0- -0- -0- -0- -0- -0- (.07) (.03)
------- -------- -------- -------- -------- -------- -------- --------
$ 16.03 $ 15.63 $ 17.21 $ 17.19 $ 16.83 $ 16.44 $ 16.62 $ 16.28
======= ======== ======== ======== ======== ======== ======== ========
$13.375 $ 13.75 $ 17.75 $16.9375 $ 17.375 $ 16.75 $ 15.625 $ 15.625
3.99% -17.90% 5.76%* 3.13% 10.33% 14.18% 7.58% -2.62%
$ 104.5 $ 101.9 $ 112.0 $ 111.8 $ 109.3 $ 106.3 $ 107.2 $ 105.0
1.65% 1.64% 1.65% 1.62% 1.64% 1.67% 1.72% 1.66%
7.47% 7.34% 7.05% 7.24% 7.49% 7.36% 7.89% 7.52%
38% 40% 3%* 20% 9% 8% 17% 19%
1.10% 1.12% 1.14% 1.12% 1.12% 1.14% 1.16% 1.14%
5.50% 5.83% 5.51% 5.63% 5.87% 5.70% 6.06% 6.33%
2,000 2,000 1,000 1,000 1,000 1,000 1,000 1,000
$77,250 $ 75,953 $162,038 $161,831 $159,317 $156,310 $157,224 $155,040
$25,000 $ 25,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
$25,000 $ 25,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
</Table>
See Notes to Financial Statements 15
VAN KAMPEN FLORIDA QUALITY MUNICIPAL TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2004 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen Florida Quality Municipal Trust (the "Trust") is registered as a
non-diversified, closed-end management investment company under the Investment
Company Act of 1940, as amended. The Trust's investment objective is to seek to
provide a high level of current income exempt from federal income taxes and
Florida State intangible taxes, consistent with preservation of capital. The
Trust will invest in a portfolio consisting substantially of Florida municipal
obligations rated investment grade at the time of investment, but may invest up
to 20% of its assets in unrated securities which are believed to be of
comparable quality to those rated investment grade. The Trust commenced
investment operations on September 27, 1991. Effective November 30, 2003, the
Trust's investment adviser, Van Kampen Investment Advisory Corp. merged into its
affiliate, Van Kampen Asset Management.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
A. SECURITY VALUATION Municipal bonds are valued by independent pricing services
or dealers using the mean of the bid and asked prices or, in the absence of
market quotations, at fair value based upon yield data relating to municipal
bonds with similar characteristics and general market conditions. Securities
which are not valued by independent pricing services or dealers are valued at
fair value using procedures established in good faith by the Board of Trustees.
Short-term securities with remaining maturities of 60 days or less are valued at
amortized cost, which approximates market value.
B. SECURITY TRANSACTIONS Security transactions are recorded on a trade date
basis. Realized gains and losses are determined on an identified cost basis. The
Trust may purchase and sell securities on a "when-issued" or "delayed delivery"
basis, with settlement to occur at a later date. The value of the security so
purchased is subject to market fluctuations during this period. The Trust will
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, the Trust had no 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.
16
VAN KAMPEN FLORIDA QUALITY MUNICIPAL 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........................ $146,298,932
============
Gross tax unrealized appreciation........................... 8,199,261
Gross tax unrealized depreciation........................... (530,587)
------------
Net tax unrealized appreciation on investments.............. $ 7,668,674
============
</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........................................... $ 258,771
Long-term capital gain.................................... 2,239,281
----------
$2,498,052
==========
</Table>
As of October 31, 2003, the components of distributable earnings on a tax
basis were as follows:
<Table>
Undistributed ordinary income............................... $ 53,417
Undistributed long-term capital gain........................ 1,097,536
</Table>
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of the Trust's Investment Advisory Agreement, Van Kampen Asset
Management (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 $5,000, 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 $14,200
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.
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.
17
VAN KAMPEN FLORIDA QUALITY MUNICIPAL TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2004 (UNAUDITED) continued
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 $12,528,602 and $13,751,731,
respectively.
4. PREFERRED SHARES
The Trust has outstanding 2,000 Auction Preferred Shares ("APS"). Dividends are
cumulative and the dividend rate is currently reset every 28 days through an
auction process. The rate in effect on April 30, 2004 was 1.050%. During the six
months ended April 30, 2004, the rates ranged from 0.885% to 1.450%.
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.
18
VAN KAMPEN FLORIDA QUALITY MUNICIPAL 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
19
VAN KAMPEN FLORIDA QUALITY MUNICIPAL 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
20
VAN KAMPEN FLORIDA QUALITY MUNICIPAL 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.
21
Van Kampen
Privacy Notice
The Van Kampen companies and investment products* respect your right to privacy.
We also know that you expect us to conduct and process your business in an
accurate and efficient manner. To do so, we must collect and maintain certain
nonpublic personal information about you. This is information we collect from
you on applications or other forms, and from the transactions you 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.
VFM SAR 6/04 RN04-00735P-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 Florida Quality Municipal Trust
By: /s/ Ronald E. Robison
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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
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Name: Ronald E. Robison
Title: Principal Executive Officer
Date: June 22, 2004
By: /s/ John L. Sullivan
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Name: John L. Sullivan
Title: Principal Financial Officer
Date: June 22, 2004