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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 811-6362
Van Kampen 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. Report 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
Municipal Trust performed during the semi-annual period. The portfolio
management team will provide an overview of the market conditions and
discuss some of the factors that affected investment performance during
the reporting period. In addition, this report includes the trust's
financial statements and a list of trust investments as of 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 the 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>
---------------------------------------------------------------------------------------
NOT FDIC INSURED OFFER NO BANK GUARANTEE MAY LOSE VALUE
---------------------------------------------------------------------------------------
NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY NOT A DEPOSIT
---------------------------------------------------------------------------------------
</Table>
Performance Summary as of 4/30/04
<Table>
<Caption>
MUNICIPAL TRUST
SYMBOL: VKQ
- ------------------------------------------------------
AVERAGE ANNUAL BASED ON BASED ON
TOTAL RETURNS NAV MARKET PRICE
Since Inception (09/27/91) 7.49% 6.34%
10-year 7.33 6.20
5-year 5.89 3.70
1-year 2.83 -1.64
6-month 1.16 -1.57
- ------------------------------------------------------
</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 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 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. 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. 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 82.7 percent exposure to bonds rated AA/Aa or
higher at the end of the period.
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 13- to 19-year segment of the curve. Many of the securities we identified
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
1.16% -1.57% 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
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.
The trust's trading activity during the period was well 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 and reinvested the cash into securities with more
promising total-return 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 in rates 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 19.1% AAA/Aaa 71.0%
Public Education 11.5 AA/Aa 11.7
Health Care 10.0 A/A 3.7
Transportation 9.4 BBB/Baa 5.1
Higher Education 8.0 BB/Ba 1.7
B/B 0.1
Non-Rated 6.7
</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
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 MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED)
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- --------------------------------------------------------------------------------------------
MUNICIPAL BONDS 149.8%
ALABAMA 3.7%
$1,000 Birmingham Baptist Med Ctr AL Baptist Hlth Sys
Ser A........................................... 5.875% 11/15/24 $ 1,047,810
2,695 Gadsden, AL Wts Ser B (AMBAC Insd).............. 5.250 08/01/21 2,844,626
4,000 Jefferson Cnty, AL Swr Rev Cap Impt Wts
(Prerefunded @ 08/01/12) (FGIC Insd)............ 5.125 02/01/42 4,365,120
6,215 Jefferson Cnty, AL Swr Rev Cap Impt Wts Ser A
(Prerefunded @ 02/01/11) (FGIC Insd)............ 5.000 02/01/41 6,795,854
1,735 Jefferson Cnty, AL Swr Rev Cap Impt Wts Ser A
(Prerefunded @ 02/01/11) (FGIC Insd)............ 5.000 02/01/41 1,907,025
2,000 Jefferson Cnty, AL Wts Ser A (AMBAC Insd)....... 5.000 04/01/09 2,178,300
2,405 Marshall Cnty, AL Hlthcare Ser C................ 6.000 01/01/32 2,501,104
-------------
21,639,839
-------------
ALASKA 0.2%
1,000 Alaska St Intl Arpt Rev Ser B (AMBAC Insd)...... 5.750 10/01/17 1,107,210
-------------
ARIZONA 0.7%
1,425 Arizona Cap Fac Fin Corp Student Hsg Rev AZ St
Univ Proj....................................... 6.250 09/01/32 1,474,162
1,000 Arizona Hlth Fac Auth Hosp John C Lincoln Hlth
Network......................................... 6.375 12/01/37 1,031,010
1,750 Arizona Sch Fac Brd Ctf Part Ser A (MBIA
Insd)........................................... 5.250 09/01/17 1,870,382
-------------
4,375,554
-------------
ARKANSAS 0.3%
1,565 Fort Smith, AR Wtr & Swr Rev Ser C (FSA Insd)... 5.000 10/01/21 1,611,543
-------------
CALIFORNIA 13.6%
4,000 Anaheim, CA Pub Fin Auth Lease Rev Cap Apprec
Sub Pub Impts Proj C (FSA Insd)................. * 09/01/20 1,716,880
2,500 Anaheim, CA Uni High Sch Dist Ser A (FSA
Insd)........................................... 5.000 08/01/25 2,515,775
350 California Hlth Fac Fin Auth Rev Casa De Las Ser
A (MBIA Insd)................................... 5.250 08/01/17 368,371
5,500 California St (AMBAC Insd)...................... 5.125 10/01/27 5,516,995
1,250 California St Dept Wtr Res Pwr Ser A............ 6.000 05/01/15 1,382,713
4,000 California St Dept Wtr Res Pwr Ser A (AMBAC
Insd)........................................... 5.375 05/01/18 4,285,800
3,705 California St Dept Wtr Res Pwr Ser A (MBIA
Insd)........................................... 5.375 05/01/21 3,921,705
2,000 California St Dept Wtr Res Pwr Ser A (MBIA
Insd)........................................... 5.375 05/01/22 2,107,920
2,500 California St Pub Wks Brd Lease Rev Dept
Corrections Ser E (XLCA Insd)................... 5.000 06/01/18 2,593,175
1,000 California St Pub Wks Brd UCLA Replacement Hosp
Ser A (FSA Insd)................................ 5.375 10/01/20 1,059,640
</Table>
6 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- --------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
$5,000 California St Univ Rev Systemwide Ser A (AMBAC
Insd)........................................... 5.000% 11/01/23 $ 5,074,350
2,650 California Statewide Cmnty Dev Auth Ctf Part
(Acquired 11/23/99, Cost $2,650,000) (a)........ 7.250 11/01/29 2,716,833
5,000 Contra Costa, CA Home Mtg Fin Auth Home Mtg Rev
(Escrowed to Maturity) (MBIA Insd).............. * 09/01/17 2,532,250
1,000 Davis, CA Pub Fac Fin Auth Mace Ranch Area Ser
A............................................... 6.600 09/01/25 1,039,180
1,300 Del Mar, CA Race Track Auth Rev Rfdg............ 6.000 08/15/06 1,345,656
18,000 Foothill/Eastern Corridor Agy CA Toll Rd Rev Cap
Apprec Rfdg (MBIA Insd)......................... * 01/15/25 5,367,960
27,810 Foothill/Eastern Corridor Agy CA Toll Rd Rev Cap
Apprec Rfdg..................................... * 01/15/33 4,838,940
6,000 Foothill/Eastern Corridor Agy CA Toll Rd Rev Cap
Apprec Sr Lien Ser A (Escrowed to Maturity)..... * 01/01/18 3,110,220
2,240 Huntington Park, CA Redev Agy Rev Tax Alloc
Santa Fe Redev Rfdg............................. 6.200 10/01/27 2,305,632
2,635 Imperial Irr Dist CA Ctf Part Elec Sys Proj (FSA
Insd)........................................... 5.250 11/01/23 2,723,615
2,000 Los Angeles, CA Uni Sch Dist Ser A (MBIA
Insd)........................................... 5.375 07/01/18 2,166,900
4,400 Los Angeles, CA Uni Sch Dist Ser A (MBIA
Insd)........................................... 5.250 07/01/19 4,677,728
5,585 Sacramento, CA City Fin Auth Rev Comb Proj B
(MBIA Insd)..................................... * 11/01/14 3,430,419
1,375 San Bernadino, CA Jt Pwr Fin Auth Alloc Rev
Central City Merged Proj A Rfdg (AMBAC Insd).... 5.750 07/01/20 1,561,491
1,000 Stockton, CA Cmnty Fac Dist Spl Tax No 1-A Mello
Roos-Weston Ranch Ser A......................... 5.800 09/01/14 1,045,360
4,000 University, CA Rev Gen Ser A (AMBAC Insd)....... 5.000 05/15/33 3,990,760
5,000 University, CA Rev Gen Ser B (AMBAC Insd)....... 5.000 05/15/20 5,163,300
-------------
78,559,568
-------------
COLORADO 2.0%
1,000 Colorado Hlth Fac Auth Rev Catholic Hlth
Initiatives Ser A............................... 5.500 03/01/32 1,025,820
1,125 Colorado Hlth Fac Auth Rev Hosp Portercare
Adventist Hlth.................................. 6.500 11/15/31 1,220,400
2,200 La Plata Cnty, CO Sch Dist 9-R Durango (MBIA
Insd)........................................... 5.250 11/01/21 2,306,788
6,365 Platte Riv Pwr Auth CO Pwr Rev Ser EE........... 5.375 06/01/16 6,870,317
-------------
11,423,325
-------------
</Table>
See Notes to Financial Statements 7
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- --------------------------------------------------------------------------------------------
CONNECTICUT 5.5%
$7,140 Connecticut St Hlth & Ed Fac Auth Rev Nursing
Home Proj AHF/Hartford (Prerefunded @
11/01/04)....................................... 7.125% 11/01/24 $ 7,493,501
2,840 Connecticut St Spl Oblig Pkg Rev Bradley Intl
Arpt Ser A (ACA Insd) (AMT)..................... 6.600 07/01/24 3,048,257
3,450 Connecticut St Spl Tax Oblig Ser B (Prerefunded
@ 10/01/04) (FGIC Insd)......................... 6.200 10/01/13 3,556,674
3,540 Mashantucket Western Pequot Tribe CT Spl Rev Ser
A, 144A-Private Placement (b)................... 6.400 09/01/11 3,786,880
3,460 Mashantucket Western Pequot Tribe CT Spl Rev Ser
A, 144A-Private Placement (Prerefunded @
09/01/07) (b)................................... 6.400 09/01/11 3,889,005
6,500 Mashantucket Western Pequot Tribe CT Spl Rev Ser
B, 144A-Private Placement (b)................... 5.750 09/01/18 6,757,725
3,500 Mashantucket Western Pequot Tribe CT Spl Rev Ser
B, 144A-Private Placement (b)................... 5.750 09/01/27 3,564,785
-------------
32,096,827
-------------
DISTRICT OF COLUMBIA 1.0%
1,000 District of Columbia Hosp Rev Medlantic Hlthcare
Group A Rfdg (Escrowed to Maturity) (MBIA
Insd)........................................... 5.875 08/15/19 1,096,930
5,000 Metropolitan Washington DC Arpt Auth Sys Ser A
(FGIC Insd) (AMT)............................... 5.125 10/01/26 4,966,850
-------------
6,063,780
-------------
FLORIDA 9.6%
3,380 Brevard Cnty, FL Hlth Fac Hlth First Inc Proj
(MBIA Insd)..................................... 5.125 04/01/31 3,392,945
2,550 Broward Cnty, FL Wtr & Swr Util Rfdg (MBIA
Insd)........................................... 5.000 10/01/20 2,639,990
3,040 Escambia Cnty, FL Hlth Fac Auth Rev (AMBAC
Insd)........................................... 5.950 07/01/20 3,175,706
1,000 Florida St Brd Ed Lottery Rev Ser A (FGIC
Insd)........................................... 5.750 07/01/11 1,127,450
3,000 Florida St Dept Environmental Protection
Preservation Rev Ser A (FGIC Insd).............. 5.750 07/01/10 3,402,630
1,895 Gulf Breeze, FL Rev Loc Govt (Variable Rate
Coupon) (FGIC Insd)............................. 5.625 12/01/20 2,043,568
1,155 Gulf Breeze, FL Rev Venice Loc Govt (FGIC Insd)
(c)............................................. 5.050 12/01/20 1,222,810
2,310 Hillsborough Cnty, FL Indl Dev Auth Andl Dev Rev
Hlth Fac Proj Univ Cmnty Hosp Ser A............. 5.500 08/15/14 2,380,178
1,000 Hillsborough Cnty, FL Indl Dev Auth Indl Dev Rev
Univ Cmnty Hosp (MBIA Insd)..................... 5.750 08/15/14 1,031,020
1,000 Hillsborough Cnty, FL Util Jr Lien Rfdg (AMBAC
Insd)........................................... 5.000 08/01/06 1,067,130
1,000 Jea, FL Elec Sys Rev Ser 3 Ser A................ 5.500 10/01/41 1,024,420
1,000 Lake Cnty, FL Sch Brd Ctf Part (AMBAC Insd)..... 5.375 07/01/15 1,082,280
</Table>
8 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- --------------------------------------------------------------------------------------------
FLORIDA (CONTINUED)
$ 265 Lakeland, FL Hosp Sys Rev Lakeland Regl Hlth
Sys............................................. 5.500% 11/15/32 $ 266,479
1,515 Miami Beach, FL Stormwtr Rev (FGIC Insd)........ 5.250 09/01/25 1,556,163
1,855 Miami-Dade Cnty, FL Hlth Fac Miami Childrens
Hosp Ser A Rfdg (AMBAC Insd).................... 5.000 08/15/20 1,889,540
2,000 Miami-Dade Cnty, FL Aviation Rev Miami Intl Arpt
(FGIC Insd) (AMT)............................... 5.375 10/01/25 2,050,100
2,700 Miami-Dade Cnty, FL Aviation Rev Miami Intl Arpt
(FGIC Insd) (AMT)............................... 5.375 10/01/32 2,753,703
5,000 Miami-Dade Cnty, FL Aviation Ser A (FSA Insd)
(AMT)........................................... 5.125 10/01/35 4,967,300
3,750 Orange Cnty, FL Sch Brd Ctf Part Ser A (AMBAC
Insd)........................................... 5.250 08/01/14 4,080,075
4,320 Orange Cnty, FL Tourist Dev Tax Rev (AMBAC
Insd)........................................... 5.625 10/01/14 4,797,144
4,300 Orange Cnty, FL Tourist Dev Tax Rev (AMBAC
Insd)........................................... 5.500 10/01/31 4,472,086
1,870 Reedy Creek, FL Impt Dist FL Ser A (MBIA
Insd)........................................... 5.000 06/01/21 1,932,739
2,140 Reedy Creek, FL Impt Dist FL Ser A Rfdg (AMBAC
Insd)........................................... 5.500 06/01/12 2,357,082
1,060 Tallahassee, FL Lease Rev FL St Univ Proj Ser A
(MBIA Insd)..................................... 5.500 08/01/18 1,151,966
-------------
55,864,504
-------------
GEORGIA 3.6%
2,645 Georgia St Ser D................................ 6.000 10/01/05 2,807,853
3,500 Georgia St Ser D................................ 6.000 10/01/06 3,828,545
2,400 Municipal Elec Auth GA Combustion Turbine Proj
Ser A (MBIA Insd)............................... 5.250 11/01/14 2,603,088
8,030 Municipal Elec Auth GA Combustion Turbine Proj
Ser A (MBIA Insd)............................... 5.250 11/01/18 8,510,997
1,000 Oconee Cnty, GA Indl Dev Auth Oiit Proj (XLCA
Insd)........................................... 5.250 07/01/23 1,028,140
2,000 Royston, GA Hosp Auth Hosp Ctf Rev Ty Cobb
Hlthcare Sys Inc Rfdg........................... 6.500 07/01/27 1,951,640
-------------
20,730,263
-------------
HAWAII 0.4%
1,465 Honolulu, HI City & Cnty Ser D (FGIC Insd)
(AMT)........................................... 4.700 02/01/08 1,554,746
975 Honolulu, HI City & Cnty Wastewtr Sys Rev Cap
Apprec (FGIC Insd).............................. * 07/01/12 686,000
-------------
2,240,746
-------------
</Table>
See Notes to Financial Statements 9
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- --------------------------------------------------------------------------------------------
ILLINOIS 15.3%
$3,400 Carol Stream, IL First Mtg Rev Windsor Pk Mnr
Proj (Prerefunded @ 12/01/07)................... 7.000% 12/01/13 $ 3,487,890
1,500 Champaign Cnty, IL Cmnty Unit Sch Dist No 116
Urbana Ser C (Prerefunded @ 01/01/10) (FGIC
Insd)........................................... * 01/01/16 866,565
1,300 Champaign Cnty, IL Cmnty Unit Sch Dist No 116
Urbana Ser C (Prerefunded @ 01/01/10) (FGIC
Insd)........................................... * 01/01/18 664,677
1,285 Chicago, IL Brd Ed (Prerefunded @ 12/01/10)
(FGIC Insd)..................................... 6.000 12/01/12 1,483,982
1,400 Chicago, IL Brd Ed Ser A (MBIA Insd)............ 5.500 12/01/28 1,462,174
4,000 Chicago, IL Neighborhoods Alive 21 Pgm Ser A
(FGIC Insd)..................................... 5.750 01/01/40 4,238,360
2,500 Chicago, IL O'Hare Intl Arpt Rev Gen Arpt Third
Lien C 2 Rfdg (FSA Insd) (AMT).................. 5.250 01/01/30 2,512,050
5,000 Chicago, IL O'Hare Intl Arpt Rev Gen Arpt Third
Lien Ser A Rfdg (MBIA Insd) (AMT)............... 5.375 01/01/32 5,065,100
1,015 Chicago, IL O'Hare Intl Arpt Rev Second Lien
Passenger Fac Ser B (AMBAC Insd)................ 5.500 01/01/16 1,094,079
1,980 Chicago, IL Pk Dist Ser C (FGIC Insd)........... 5.500 01/01/19 2,131,450
2,565 Chicago, IL Proj Ser C Rfdg (FGIC Insd)......... 5.750 01/01/12 2,854,665
1,000 Cook Cnty, IL Cmnty Cons Sch Dist No 64 Park
Ridge (FSA Insd)................................ 5.500 12/01/14 1,116,030
1,000 Cook Cnty, IL Ser A (FGIC Insd)................. 5.500 11/15/31 1,038,840
7,765 Du Page Cnty, IL Forest Preserve Dist........... * 11/01/17 4,007,051
5,000 Du Page Cnty, IL Trans Rev (FSA Insd)........... 5.750 01/01/15 5,535,800
4,000 Hodgkins, IL Tax Increment Ser A Rfdg........... 7.625 12/01/13 4,270,960
2,860 Illinois Dev Fin Auth Rev Adventist Hlth Ser A
(MBIA Insd) (c)................................. 5.500 11/15/05 3,016,785
2,725 Illinois Dev Fin Auth Rev Cmnty Rehab Providers
Fac Ser A....................................... 7.375 07/01/25 2,914,251
2,705 Illinois Dev Fin Auth Rev Loc Govt Pgm Aurora
East Sch (MBIA Insd)............................ * 12/01/15 1,556,051
1,565 Illinois Ed Fac Auth Rev DePaul Univ
(Prerefunded @ 10/01/10) (AMBAC Insd)........... 5.625 10/01/15 1,784,147
1,740 Illinois Ed Fac Auth Rev Lewis Univ............. 5.900 10/01/14 1,732,553
1,645 Illinois Hlth Fac Auth Rev Evangelical Hosp Ser
C Rfdg (Partially prerefunded @ 04/15/02) (FSA
Insd)........................................... 6.750 04/15/12 1,947,384
2,500 Illinois St First Ser (MBIA Insd)............... 5.500 12/01/09 2,792,050
1,500 Illinois St First Ser (FGIC Insd)............... 5.375 11/01/14 1,635,795
3,000 Illinois St First Ser (FSA Insd)................ 5.250 12/01/21 3,133,680
4,000 Illinois St Sales Tax Rev....................... 5.000 06/15/23 4,048,920
</Table>
10 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- --------------------------------------------------------------------------------------------
ILLINOIS (CONTINUED)
$3,440 Kendall Kane & Will Cntys, IL Cmnty Sch Dist No
308 Ser B (FGIC Insd)........................... 5.250% 10/01/19 $ 3,631,367
870 Metropolitan Pier & Expo Auth IL Dedicated St
Tax Rev Cap Apprec (Escrowed to Maturity) (FGIC
Insd)........................................... * 06/15/14 547,326
3,460 Metropolitan Pier & Expo Auth IL Dedicated St
Tax Rev Cap Apprec (Unrefunded Balance) (FGIC
Insd)........................................... * 06/15/14 2,170,285
2,675 Metropolitan Pier & Expo Auth IL Dedicated St
Tax Rev McCormick Pl Expn Ser A (MBIA Insd)..... 5.250 06/15/42 2,716,489
1,510 Roselle, IL Multi-Family Hsg Rev Waterbury Apts
Ser A Rfdg (GNMA Collateralized)................ 7.000 01/01/25 1,555,013
3,060 Will Cnty, IL Cmnty Sch Dist No 161 Summit Hill
Cap Apprec (FGIC Insd).......................... * 01/01/12 2,208,096
3,505 Will Cnty, IL Cmnty Sch Dist No 161 Summit Hill
Cap Apprec (FGIC Insd).......................... * 01/01/14 2,243,445
2,010 Will Cnty, IL Cmnty Sch Dist No 161 Summit Hill
Cap Apprec (FGIC Insd).......................... * 01/01/16 1,143,811
1,415 Will Cnty, IL Cmnty Sch Dist No 161 Summit Hill
Cap Apprec (FGIC Insd).......................... * 01/01/19 672,097
9,660 Will Cnty, IL Forest Preserve Dist Ser B (FGIC
Insd)........................................... * 12/01/16 5,251,273
-------------
88,530,491
-------------
INDIANA 1.4%
1,000 Allen Cnty, IN Juvenile Justice Ctr First Mtg
(AMBAC Insd).................................... 5.500 01/01/18 1,079,740
1,000 Clark Pleasant, IN Cmnty Sch First Mtg (AMBAC
Insd)........................................... 5.500 07/15/13 1,100,470
1,580 Indiana Trans Fin Auth Toll Rd Lease Rev Rfdg
(AMBAC Insd).................................... 5.375 07/01/09 1,711,551
1,500 Petersburg, IN Pollutn Ctl Rev, IN Pwr & Lt
(AMT)........................................... 5.950 12/01/29 1,507,530
2,500 Vigo Cnty, IN Sch Bldg Corp First Mtg Impt &
Rfdg (FSA Insd)................................. 5.250 07/10/24 2,565,600
-------------
7,964,891
-------------
KANSAS 1.1%
3,000 Sedgwick Cnty, KS Uni Sch Dist No 259 Wichita
(MBIA Insd)..................................... 6.000 09/01/09 3,422,790
1,395 Wichita, KS Pub Bldg Comm Rev Wichita St Univ
Proj Ser L Rfdg (AMBAC Insd).................... 5.000 02/01/15 1,470,470
1,465 Wichita, KS Pub Bldg Comm Rev Wichita St Univ
Proj Ser L Rfdg (AMBAC Insd).................... 5.000 02/01/16 1,535,349
-------------
6,428,609
-------------
</Table>
See Notes to Financial Statements 11
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- --------------------------------------------------------------------------------------------
KENTUCKY 2.9%
$4,000 Elsmere, KY Indl Dev Rev Courtaulds Pkg Inc Proj
Rfdg (Prerefunded @ 04/01/05)................... 6.750% 04/01/10 $ 4,270,080
1,500 Kentucky St Ppty & Bldg Commn Proj No 69 Ser A
Rfdg (FSA Insd)................................. 5.500 08/01/11 1,681,935
3,000 Kentucky St Ppty & Bldg Commn Proj No 79
(Prerefunded @ 10/01/13) (MBIA Insd)............ 5.125 10/01/19 3,298,470
3,500 Kentucky St Tpk Auth Econ Dev Revitalization
Proj Rfdg (FSA Insd)............................ 5.500 07/01/07 3,835,265
1,000 Kentucky St Tpk Auth Econ Dev Revitalization
Proj Rfdg (FSA Insd)............................ 5.625 07/01/14 1,108,560
2,350 Louisville & Jefferson, KY Swr Ser A (MBIA
Insd)........................................... 5.500 05/15/15 2,566,529
-------------
16,760,839
-------------
LOUISIANA 3.1%
5,000 Ernest N Morial New Orleans LA Sr Sub Ser A
(AMBAC Insd).................................... 5.250 07/15/21 5,224,200
1,675 Louisiana Loc Govt Envir Fac Pkg Fac Corp Garage
Proj Ser A (AMBAC Insd)......................... 5.200 10/01/19 1,758,867
3,000 Louisiana St Ser A (FGIC Insd).................. 5.500 11/15/07 3,309,090
8,209 Louisiana St Univ & Agriculture & Mechanical
College Univ Rev Master Lease (Acquired
11/30/98, Cost $8,032,929) (a).................. 5.750 10/30/18 7,683,951
-------------
17,976,108
-------------
MAINE 0.2%
1,000 Maine Vets Homes, ME Rev (Prerefunded @
10/01/05)....................................... 7.750 10/01/20 1,101,070
-------------
MARYLAND 1.4%
2,300 Baltimore, MD Cap Apprec Cons Pub Ser A Impt &
Rfdg (FGIC Insd)................................ * 10/15/06 2,103,925
1,845 Baltimore, MD Cap Apprec Ser A (Unrefunded
Balance) (FGIC Insd)............................ * 10/15/07 1,579,763
1,700 Maryland St Trans Auth Arpt Baltimore/WA Intl
Arpt B (AMBAC Insd) (AMT)....................... 5.125 03/01/24 1,718,207
2,365 Northeast, MD Waste Disp Auth Rfdg (AMBAC Insd)
(AMT)........................................... 5.500 04/01/16 2,525,442
-------------
7,927,337
-------------
MASSACHUSETTS 3.8%
1,775 Massachusetts Muni Whsl Elec Co Nuclear Proj 5
(MBIA Insd)..................................... 5.250 07/01/13 1,930,845
1,000 Massachusetts St Cons Ln Ser B (AMBAC Insd)..... 5.000 08/01/22 1,021,260
1,745 Massachusetts St Cons Ln Ser B (Prerefunded @
05/01/09)....................................... 5.250 05/01/13 1,935,920
</Table>
12 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- --------------------------------------------------------------------------------------------
MASSACHUSETTS (CONTINUED)
$5,000 Massachusetts St Cons Ln Ser E (Prerefunded @
01/01/13) (FSA Insd)............................ 5.250% 01/01/20 $ 5,471,050
2,165 Massachusetts St Dev Fin Agy M/Srbc Proj Ser A
(MBIA Insd)..................................... 5.125 02/01/34 2,174,721
820 Massachusetts St Dev Fin Agy Rev Boston
Architectural Ctr (ACA Insd).................... 6.100 09/01/18 863,099
1,000 Massachusetts St Dev Fin Agy Rev Boston
Architectural Ctr (ACA Insd).................... 6.250 09/01/28 1,049,480
1,500 Massachusetts St Fed Hwy Gnt Antic Nt Ser A..... 5.750 06/15/15 1,700,715
3,700 Massachusetts St Hlth & Ed Fac Auth Rev (MBIA
Insd)........................................... 5.000 07/01/13 3,792,796
1,000 Massachusetts St Hlth & Ed Fac Auth Rev Partn
Hlthcare Sys Ser C.............................. 5.750 07/01/32 1,046,650
825 Massachusetts St Hlth & Ed Fac Auth Rev
Winchester Hosp Ser D Rfdg (Connie Lee Insd).... 5.750 07/01/14 846,780
-------------
21,833,316
-------------
MICHIGAN 3.8%
3,560 Detroit, MI Loc Dev Fin Auth Tax Increment Sr
Ser B (Acquired 09/08/97, Cost $3,560,000)
(a)............................................. 6.700 05/01/21 3,484,136
900 Detroit, MI Loc Dev Fin Auth Tax Increment Sub
Ser C (Acquired 09/08/97, Cost $900,000) (a).... 6.850 05/01/21 863,865
3,860 Detroit, MI Ser A (XLCA Insd)................... 5.250 04/01/21 4,025,941
2,930 Detroit, MI Wtr Supply Sys Rev Sr Lien Ser C
Rfdg (MBIA Insd)................................ 5.250 07/01/18 3,121,769
1,180 Hillsdale, MI Hosp Fin Auth Hosp Rev Hillsdale
Cmnty Hlth Ctr.................................. 5.750 05/15/18 1,161,238
2,000 Michigan Muni Bd Auth Rev Clean Wtr Rev Fd...... 5.250 10/01/18 2,119,180
500 Michigan St Hosp Fin Auth Rev Hosp Genesys Regl
Med Ser A Rfdg (Escrowed to Maturity)........... 5.375 10/01/13 546,965
2,640 Michigan St Hsg Dev Rental Hsg Rev Ser A (MBIA
Insd) (AMT)..................................... 5.300 10/01/37 2,646,547
1,500 Michigan St Strategic Fd Detroit Edison Co Proj
C Rfdg (XLCA Insd) (AMT)........................ 5.450 12/15/32 1,531,665
2,500 Michigan St Trunk Line Ser A (Prerefunded @
11/01/11)....................................... 5.500 11/01/15 2,807,775
-------------
22,309,081
-------------
MISSISSIPPI 0.5%
2,500 Mississippi Bus Fin Corp MS Pollutn Ctl Rev Sys
Energy Res Inc Proj............................. 5.875 04/01/22 2,512,475
620 Mississippi Home Corp Single Family Rev Mtg Ser
F (GNMA Collateralized) (AMT)................... 7.550 12/01/27 639,381
-------------
3,151,856
-------------
</Table>
See Notes to Financial Statements 13
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- --------------------------------------------------------------------------------------------
MISSOURI 3.0%
$1,400 Ellisville, MO Indl Dev Auth Rev Gambrill
Gardens Proj Rfdg & Impt........................ 6.100% 06/01/20 $ 1,335,684
1,000 Ellisville, MO Indl Dev Auth Rev Gambrill
Gardens Proj Rfdg & Impt........................ 6.200 06/01/29 926,600
1,250 Fulton 54 Trans Corp Hwt Rev MO (AMBAC Insd).... 4.600 09/01/04 1,264,000
1,740 Good Shepherd Nursing Home Dist MO Nursing Home
Fac Rev (Prerefunded @ 08/15/05)................ 7.625 08/15/15 1,901,159
1,000 Kearney, MO (AMBAC Insd)........................ 5.500 03/01/16 1,088,330
1,415 Missouri St Hlth & Ed Fac Rev Univ MO Columbia
Arena Proj...................................... 5.000 11/01/18 1,466,916
3,085 Missouri St Hwy & Trans Commn Rd Rev Ser A...... 5.250 02/01/07 3,328,962
1,000 Missouri St Hwy & Trans Commn Rd Rev Ser A...... 5.125 02/01/17 1,055,660
2,810 Perry Cnty, MO Nursing Home Rev Rfdg............ 5.900 03/01/28 2,453,776
2,505 St Louis, MO Arpt Rev Cap Impt Prog Ser A (MBIA
Insd)........................................... 5.375 07/01/20 2,657,680
-------------
17,478,767
-------------
NEVADA 0.7%
2,500 Reno, NV Cap Impt Rev (FGIC Insd)............... 5.125 06/01/26 2,524,925
1,500 Reno, NV Sr Lien Retrac Reno Trans Proj (AMBAC
Insd)........................................... 5.125 06/01/37 1,503,180
-------------
4,028,105
-------------
NEW HAMPSHIRE 1.3%
4,800 New Hampshire Higher Ed & Hlth Fac Auth Rev
Daniel Webster College Issue.................... 6.300 07/01/29 4,498,368
2,000 New Hampshire Higher Ed & Hlth Fac Auth Rev
Riverwoods at Exeter Ser A...................... 6.500 03/01/23 1,957,320
1,000 New Hampshire Hlth & Ed Fac Auth Rev Derryfield
Sch............................................. 6.750 07/01/20 983,010
-------------
7,438,698
-------------
NEW JERSEY 8.3%
4,000 Camden Cnty, NJ Impt Auth Lease Rev Kaighn PT
Marine Term Ser A (Asset Gty Insd) (AMT) (d)
(e)............................................. 8.000 06/01/27 240,000
1,460 Eastern Camden Cnty, NJ Regl Sch Dist Rfdg (FGIC
Insd)........................................... * 03/01/05 1,443,619
1,465 Eastern Camden Cnty, NJ Regl Sch Dist Rfdg (FGIC
Insd)........................................... * 03/01/06 1,413,622
1,615 Eastern Camden Cnty, NJ Regl Sch Dist Rfdg (FGIC
Insd)........................................... * 03/01/07 1,504,776
1,555 Eastern Camden Cnty, NJ Regl Sch Dist Rfdg (FGIC
Insd)........................................... * 03/01/08 1,392,658
25,000 New Jersey Econ Dev Auth St Contract Econ
Recovery (MBIA Insd)............................ 5.900 03/15/21 28,698,000
</Table>
14 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- --------------------------------------------------------------------------------------------
NEW JERSEY (CONTINUED)
$2,825 New Jersey St Ed Fac Auth Higher Ed Cap Impt Ser
A (AMBAC Insd).................................. 5.250% 09/01/19 $ 2,989,867
3,500 New Jersey St Tpk Auth Tpk Rev Ser C (FSA
Insd)........................................... 6.500 01/01/16 4,160,030
1,000 New Jersey St Trans Corp Capital Grant Antic Nt
Ser B (AMBAC Insd).............................. 5.500 02/01/08 1,098,420
3,500 New Jersey St Trans Corp Ctf Fed Trans Admin
Grants Ser A (AMBAC Insd)....................... 5.500 09/15/13 3,898,230
1,000 New Jersey St Trans Tr Fd Auth Trans Sys Ser
A............................................... 5.750 06/15/18 1,126,770
-------------
47,965,992
-------------
NEW MEXICO 0.3%
1,500 Jicarilla, NM Apache Nation Adj Ser A (Acquired
10/23/03, Cost $1,514,910) (a).................. 5.000 09/01/18 1,504,110
-------------
NEW YORK 12.4%
1,870 Long Island Pwr Auth, NY Elec Cap Apprec (FSA
Insd)........................................... * 06/01/18 964,621
3,000 Metropolitan Trans Auth NY Ser A Rfdg (FGIC
Insd)........................................... 5.250 11/15/31 3,073,560
2,500 Nassau Cnty, NY Interim Fin Auth Sales Tax
Secured Ser A (Prerefunded @ 11/15/10).......... 5.750 11/15/13 2,852,950
1,000 Nassau Cnty, NY Ser A Rfdg (FGIC Insd).......... 6.000 07/01/10 1,143,250
85 New York City Adj SubSer A-1 (Partially
prerefunded @ 08/01/03)......................... 5.750 08/01/12 86,532
2,625 New York City Hlth & Hosp Corp Rev Hlth Sys Ser
A (AMBAC Insd).................................. 5.000 02/15/11 2,839,620
7,000 New York City Ser A............................. 6.250 08/01/08 7,639,730
2,000 New York City Ser H (FGIC Insd)................. 6.000 08/01/12 2,286,360
1,000 New York City Ser H............................. 5.750 03/15/13 1,091,490
2,500 New York City Ser I (MBIA Insd)................. 5.000 08/01/17 2,629,925
2,000 New York City Transitional Future Tax Secd Ser C
(AMBAC Insd).................................... 5.250 08/01/22 2,095,980
1,545 New York St Dorm Auth Lease Teachers College
(FSA Insd)...................................... 5.250 08/15/15 1,654,309
6,800 New York St Dorm Auth Rev City Univ Sys Cons Ser
A............................................... 5.625 07/01/16 7,581,388
3,000 New York St Dorm Auth Rev Sch Dist Fin Pgm Ser D
(MBIA Insd)..................................... 5.500 10/01/17 3,269,400
4,200 New York St Dorm Auth Rev Secd Hosp N General
Hosp Rfdg....................................... 5.750 02/15/19 4,572,666
1,250 New York St Dorm Auth Revs Cons City Univ Sys A
(FSA Insd)...................................... 5.750 07/01/13 1,423,663
2,190 New York St Hsg Fin Agy Econ Dev & Hsg Ser A.... 5.250 09/15/20 2,283,294
1,330 New York St Hsg Fin Agy Econ Dev & Hsg Ser A.... 5.000 09/15/22 1,335,586
</Table>
See Notes to Financial Statements 15
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- --------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
$4,000 New York St Twy Auth Svc Cntrct Loc Hwy Brdg
(Prerefunded @ 04/01/11)........................ 5.250% 04/01/16 $ 4,435,840
3,000 New York, NY City Mun Wtr Fin Ser B............. 5.000 06/15/19 3,117,030
4,824 Plainedge, NY Union Free Sch Dist (Acquired
07/25/97, Cost $4,824,214) (a).................. 6.000 06/01/12 5,075,942
3,000 Triborough Brdg & Tunl Auth Gen Purp Ser A...... 5.000 01/01/27 3,000,750
5,000 Triborough Brdg & Tunl Auth NY Gen Ser B Rfdg... 5.000 11/15/21 5,130,950
2,000 Triborough Brdg & Tunl Auth NY Ser E Rfdg (MBIA
Insd)........................................... 5.000 11/15/32 2,000,640
-------------
71,585,476
-------------
NORTH CAROLINA 5.1%
2,000 Johnston Cnty, NC (FGIC Insd)................... 5.900 03/01/19 2,263,280
7,015 North Carolina Eastern Muni Pwr Agy Pwr Sys Rev
Ser A Rfdg (MBIA Insd).......................... 5.500 01/01/05 7,210,368
2,200 North Carolina Eastern Muni Pwr Agy Pwr Sys Rev
Ser C (ACA Insd)................................ 5.000 01/01/21 2,174,128
8,300 North Carolina Muni Pwr Agy No 1 Catawba Elec
Rev Rfdg (MBIA Insd)............................ 6.000 01/01/12 9,483,746
6,605 North Carolina Muni Pwr Agy Ser A (MBIA Insd)... 5.250 01/01/20 6,940,006
1,315 University, NC Wilmington Rev (AMBAC Insd)...... 5.250 01/01/19 1,396,214
-------------
29,467,742
-------------
OHIO 6.5%
3,950 Cincinnati, OH City Sch Dist Sch Impt (FSA
Insd)........................................... 5.250 06/01/18 4,186,052
2,765 Cleveland-Cuyahoga Cnty, OH Dev Port Auth Rev
Cleveland Bond Fd Ser B......................... 5.375 05/15/18 2,612,483
1,000 Cuyahoga Cnty, OH Hosp Fac Rev Canton Inc
Proj............................................ 7.500 01/01/30 1,101,400
2,350 Franklin Cnty, OH Convention Fac Auth Tax &
Lease Rev Antic Bds Rfdg (AMBAC Insd)........... 5.250 12/01/17 2,506,510
1,200 Franklin Cnty, OH Convention Fac Auth Tax &
Lease Rev Antic Bds Rfdg (AMBAC Insd)........... 5.250 12/01/18 1,273,464
4,800 Franklin Cnty, OH Hosp Rev Holy Cross Hlth Sys
Ser B Rfdg (MBIA Insd).......................... 5.250 06/01/10 4,909,872
2,000 Lebanon, OH City Sch Dist (FSA Insd)............ 5.500 12/01/16 2,187,160
1,000 Lorain Cnty, OH Hosp Rev Catholic Hlthcare...... 5.375 10/01/30 1,001,290
2,000 Lorain, OH City Sch Dist Classroom Fac Impt
(MBIA Insd)..................................... 5.250 12/01/20 2,128,980
1,000 Mahoning Cnty, OH Hosp Fac Forum Hlth Oblig
Group Ser A..................................... 6.000 11/15/32 1,041,680
1,520 Miami Univ OH Gen Rcpts Rfdg (AMBAC Insd)....... 5.000 12/01/21 1,566,056
1,580 Montgomery Cnty, OH Hosp Rev Grandview Hosp &
Med Cent Rfdg (Escrowed to Maturity)............ 5.375 12/01/05 1,670,739
2,270 Montgomery Cnty, OH Hosp Rev Kettering Med Cent
Impt & Rfdg (MBIA Insd)......................... 6.250 04/01/20 2,665,389
</Table>
16 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- --------------------------------------------------------------------------------------------
OHIO (CONTINUED)
$3,595 Ohio Mun Elec Generation Agy Jt Venture 5 Ctf
Ben Int Rfdg (AMBAC Insd)....................... 5.000% 02/15/20 $ 3,697,098
1,000 Ohio St Air Quality Dev Auth Rev JMG Funding Ltd
Part Proj Rfdg (AMBAC Insd) (AMT)............... 6.375 04/01/29 1,036,640
2,500 Ohio St Bldg Auth St Fac Adult Correction Ser A
Rfdg (FSA Insd)................................. 5.500 10/01/12 2,755,475
1,000 Ohio St Higher Ed Cap Fac Ser II A.............. 5.250 12/01/05 1,056,620
-------------
37,396,908
-------------
OKLAHOMA 1.0%
1,240 Kay Cnty, OK Home Fin Auth Rev Single Family Mtg
Ser A Rfdg (Escrowed to Maturity) (AMBAC
Insd)........................................... 7.000 11/01/11 1,499,445
1,760 Oklahoma Hsg Fin Agy Single Family Rev Mtg Class
B (GNMA Collateralized) (AMT)................... 7.997 08/01/18 1,857,504
2,305 Oklahoma St Cap Impt Auth St (MBIA Insd)........ 5.000 06/01/06 2,450,192
-------------
5,807,141
-------------
OREGON 2.1%
4,000 Oregon Hlth Sciences Univ Insd Ser A (MBIA
Insd)........................................... 5.250 07/01/22 4,173,720
1,500 Oregon St Dept Admin Ser C Rfdg (MBIA Insd)..... 5.250 11/01/17 1,594,680
1,250 Portland, OR Cmnty College Dist Ser B........... 5.250 06/01/12 1,356,300
1,500 Washington Multnomah & Yamhill Cntys, OR Sch
Dist No 11 (MBIA Insd).......................... 5.000 06/01/13 1,597,905
3,195 Yamhill Cnty, OR Sch Dist No 029J Newberg (MBIA
Insd)........................................... 5.250 06/15/18 3,382,483
-------------
12,105,088
-------------
PENNSYLVANIA 7.0%
2,500 Allegheny Cnty, PA San Auth Swr (MBIA Insd)..... 5.500 12/01/30 2,613,825
3,850 Greater Latrobe, PA Sch Auth (FGIC Insd)........ 5.250 04/01/16 4,108,335
3,000 Harrisburg, PA Auth Res Gtd Sub Ser D-2 (FSA
Insd)........................................... 5.000 12/01/33 3,186,720
210 Lehigh Cnty, PA Gen Purp Auth Rev First Mtg
Bible Fellowship Proj A Rfdg.................... 5.000 12/15/05 209,647
275 Lehigh Cnty, PA Gen Purp Auth Rev First Mtg
Bible Fellowship Proj A Rfdg.................... 5.100 12/15/06 275,707
295 Lehigh Cnty, PA Gen Purp Auth Rev First Mtg
Bible Fellowship Proj A Rfdg.................... 5.250 12/15/07 295,416
210 Lehigh Cnty, PA Gen Purp Auth Rev First Mtg
Bible Fellowship Proj A Rfdg.................... 5.300 12/15/08 210,029
320 Lehigh Cnty, PA Gen Purp Auth Rev First Mtg
Bible Fellowship Proj A Rfdg.................... 5.300 12/15/09 315,309
</Table>
See Notes to Financial Statements 17
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- --------------------------------------------------------------------------------------------
PENNSYLVANIA (CONTINUED)
$ 240 Lehigh Cnty, PA Gen Purp Auth Rev First Mtg
Bible Fellowship Proj A Rfdg.................... 5.400% 12/15/10 $ 234,583
1,650 Montgomery Cnty, PA Indl Dev Auth Retirement
Cmnty Rev Adult Cmnty Total Svc Ser B........... 5.625 11/15/12 1,724,366
2,700 Pennsylvania Econ Dev Fin Auth Res Recovery Rev
Colver Proj Ser D (AMT)......................... 7.150 12/01/18 2,791,071
1,000 Pennsylvania St Tpk Commn Rev Ser T Rfdg (FGIC
Insd)........................................... 5.500 12/01/11 1,124,060
1,000 Philadelphia, PA Auth Indl Dev Philadelphia Arpt
Sys Proj Ser A (FGIC Insd) (AMT)................ 5.125 07/01/19 1,021,890
2,600 Philadelphia, PA Auth Indl Ser B (FSA Insd)..... 5.500 10/01/16 2,819,570
3,200 Philadelphia, PA Gas Wks Rev 1998 Gen Ordinance
4th Ser (FSA Insd).............................. 5.250 08/01/19 3,388,480
4,305 Philadelphia, PA Redev Auth Rev Neighborhood
Transformation Ser A (FGIC Insd)................ 5.250 04/15/11 4,741,785
1,500 Philadelphia, PA Sch Dist Ser A (FSA Insd)...... 5.750 02/01/12 1,671,165
5,205 Pittsburgh, PA Ser A (AMBAC Insd)............... 5.500 09/01/17 5,543,429
4,000 State Pub Sch Bldg Auth PA Sch Rev Lease
Philadelphia Sch Dist Proj (FSA Insd)........... 5.000 06/01/33 3,984,640
-------------
40,260,027
-------------
RHODE ISLAND 1.6%
2,150 Providence, RI Redev Agy Ctf Part Ser A
(Prerefunded @ 09/01/04)........................ 8.000 09/01/24 2,239,397
2,420 Rhode Island St Cons Cap Dev Ln Ser A
(Prerefunded @ 08/01/04)........................ 5.000 08/01/12 2,467,456
2,000 Rhode Island St Economic Dev Ser A Rfdg (FSA
Insd) (AMT)..................................... 5.000 07/01/20 2,002,240
2,495 Rhode Island St Hlth & Ed Higher Ed Johnson &
Wales Rfdg (XLCA Insd).......................... 5.375 04/01/18 2,662,340
-------------
9,371,433
-------------
SOUTH CAROLINA 0.7%
2,000 Rock Hill, SC Util Sys Rev Comb Ser A Impt &
Rfdg (FSA Insd)................................. 5.375 01/01/18 2,156,360
475 Rock Hill, SC Util Sys Rev Comb Ser C Rfdg (FSA
Insd)........................................... 5.125 01/01/13 507,832
1,500 South Carolina Jobs Econ Dev Auth Indl Rev Elec
& Gas Co Proj Ser A (AMBAC Insd)................ 5.200 11/01/27 1,532,760
-------------
4,196,952
-------------
TENNESSEE 2.1%
4,000 Johnson City, TN Hlth & Ed Fac Brd Hosp Rev
First Mtg Mtn St Hlth Ser A Rfdg (MBIA Insd).... 7.500 07/01/25 4,933,240
2,500 Memphis, TN (Prerefunded @10/01/06)............. 5.250 10/01/14 2,718,175
2,155 Memphis, TN Gen Impt............................ 5.000 05/01/20 2,228,399
</Table>
18 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- --------------------------------------------------------------------------------------------
TENNESSEE (CONTINUED)
$1,000 Metropolitan Nashville Arpt Auth TN Impt Ser A
Rfdg (FGIC Insd)................................ 6.600% 07/01/14 $ 1,161,210
1,205 Tennessee Hsg Dev Agy Home Ownership Pgm 2-A
(AMT)........................................... 5.700 07/01/31 1,235,969
-------------
12,276,993
-------------
TEXAS 9.9%
1,000 Brazos Cnty, TX Hlth Fac Dev Oblig Grp.......... 5.375 01/01/32 992,800
1,350 Cameron Cnty, TX Ctf Oblig (AMBAC Insd)......... 5.750 02/15/14 1,497,380
2,500 Coastal Bend Hlth Fac Dev, TX Ser C (Inverse
Fltg) (Escrowed to Maturity) (AMBAC Insd) (f)... 10.578 11/15/13 3,256,525
2,420 Dallas Cnty, TX Cmnty College Dist Rev Fing Sys
(AMBAC Insd).................................... 5.375 02/15/16 2,600,847
2,000 Fort Worth, TX Wtr & Swr Rev Impt Rfdg.......... 5.500 02/15/05 2,065,820
5,000 Harris Cnty, TX Flood Ctl Dist Contract B
Rfdg............................................ 5.000 10/01/23 5,057,850
1,745 Harris Cnty, TX Perm Impt & Rfdg................ 5.000 10/01/11 1,867,848
3,345 Houston, TX Hotel Occupancy Tax Convtn &
Entertnmnt Ser B (AMBAC Insd)................... 5.750 09/01/14 3,741,750
3,000 Houston, TX Indpt Sch Dist Maintenance Tax Nt
(FSA Insd)...................................... 5.000 07/15/20 3,080,130
6,790 Houston, TX Indpt Sch Dist Pub Fac Corp Lease
Rev Cap Apprec West Side Ser B (AMBAC Insd)..... * 09/15/14 4,193,232
1,500 Houston, TX Pub Impt Rfdg (FSA Insd)............ 5.750 03/01/15 1,663,785
2,500 Houston, TX Wtr & Swr Sys Rev Jr Lien Ser B Rfdg
(FGIC Insd)..................................... 6.250 12/01/05 2,676,450
1,250 Matagorda Cnty, TX Navig Dist No 1 Rev Coll
Centerpoint Energy Proj Rfdg.................... 5.600 03/01/27 1,248,775
1,000 Mesquite, TX Hlth Fac Dev Christian Care
Retirement Fac Ser A............................ 7.625 02/15/28 1,044,790
1,400 Metropolitan Hlth Fac Dev Corp TX Wilson N Jones
Mem Hosp Proj................................... 7.250 01/01/31 1,321,054
1,000 North Central, TX Hlth Fac Dev Hosp Baylor Hlth
Care Sys Proj A................................. 5.125 05/15/29 981,990
4,000 North Central, TX Hlth Fac Dev Hosp Childrens
Med Ctr Dallas (AMBAC Insd)..................... 5.250 08/15/32 4,065,240
4,085 Region One Ed Svc Cent Sub Tech Fac Proj
(Acquired 12/30/97, Cost $4,084,722) (a)........ 6.590 12/15/17 4,104,369
4,000 San Antonio, TX Elec & Gas Rev Sys Rfdg......... 5.375 02/01/18 4,272,240
1,184 Texas Gen Svc Comm Part Int..................... 7.250 08/01/11 1,201,866
75 Texas Muni Pwr Agy Rev (Escrowed to Maturity)
(MBIA Insd)..................................... * 09/01/15 44,294
</Table>
See Notes to Financial Statements 19
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- --------------------------------------------------------------------------------------------
TEXAS (CONTINUED)
$3,925 Texas Muni Pwr Agy Rev (Unrefunded Balance)
(MBIA Insd)..................................... * 09/01/15 $ 2,290,002
4,000 Texas St Univ Sys Fin Rev Rfdg (FSA Insd)....... 5.000% 03/15/19 4,108,480
-------------
57,377,517
-------------
UTAH 0.8%
3,455 Bountiful, UT Hosp Rev South Davis Cmnty Hosp
Proj (Prerefunded @ 06/15/04) (Acquired
06/23/92, Cost $3,455,000) (a).................. 9.500 12/15/18 3,594,064
1,000 Utah St Ser B Rfdg.............................. 5.250 07/01/08 1,101,750
-------------
4,695,814
-------------
VIRGINIA 2.7%
1,320 Fairfax Cnty, VA Ctf Part....................... 5.300 04/15/23 1,360,867
1,500 Henrico Cnty, VA Indl Dev Auth Pub Fac Lease Rev
Henrico Cnty Regl Jail Proj (Prerefunded @
08/01/05)....................................... 6.500 08/01/10 1,623,285
1,500 Henrico Cnty, VA Indl Dev Auth Pub Fac Lease Rev
Henrico Cnty Regl Jail Proj (Prerefunded @
08/01/05)....................................... 7.125 08/01/21 1,634,880
1,630 Richmond, VA (FSA Insd)......................... 5.125 01/15/08 1,775,559
1,340 Richmond, VA (FSA Insd)......................... 5.500 01/15/10 1,499,567
2,155 Virginia Comwlth Trans Brd North VA Trans Dist
Pg Ser A........................................ 5.375 05/15/14 2,346,838
5,000 Virginia St Pub Sch Auth Sch Fing 1997
Resolution Ser C................................ 5.000 08/01/20 5,185,250
-------------
15,426,246
-------------
WASHINGTON 5.6%
5,000 Bellevue, WA Convention Cent Auth Spl Oblig Rev
Rfdg (MBIA Insd)................................ * 02/01/24 1,705,500
3,230 Clark Cnty, WA Pub Util Dist No. 001 Gen Sys Rev
Rfdg (FSA Insd)................................. 5.500 01/01/07 3,492,954
3,000 Clark Cnty, WA Pub Util Dist No. 001 Gen Sys Rev
Rfdg (FSA Insd)................................. 5.625 01/01/12 3,314,070
5,000 Cowlitz Cnty, WA Spl Swr Rev Csob Wastewtr
Treatment Rfdg (FGIC Insd)...................... 5.500 11/01/19 5,515,400
5,000 Energy Northwest WA Elec Rev Proj No 3 Ser A
Rfdg (XLCA Insd)................................ 5.500 07/01/17 5,440,500
3,000 Energy Northwest WA Elec Rev Proj No 3 Ser A
Rfdg (FSA Insd)................................. 5.500 07/01/18 3,235,260
5,000 King Cnty, WA Ser B Rfdg (MBIA Insd)............ 5.250 01/01/34 5,064,400
1,000 Port Seattle, WA Rev Ser B (MBIA Insd) (AMT).... 5.625 02/01/24 1,031,820
</Table>
20 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- --------------------------------------------------------------------------------------------
WASHINGTON (CONTINUED)
$1,345 Tacoma, WA Elec Sys Rev Ser A Rfdg (FSA Insd)... 5.750% 01/01/15 $ 1,489,009
1,750 Washington St Pub Pwr Supply Sys Nuclear Proj No
1 Rev (MBIA Insd)............................... 5.750 07/01/12 1,911,875
-------------
32,200,788
-------------
WEST VIRGINIA 1.1%
6,550 Harrison Cnty, WV Cnty Cmnty Solid Waste Disp
Rev Potomac Edison Co Ser A (MBIA Insd) (AMT)... 6.875 04/15/22 6,575,938
-------------
WISCONSIN 2.2%
5,000 Wisconsin St Hlth & Ed Fac Auth Mercy Hlth Sys
Corp (AMBAC Insd)............................... 5.500 08/15/25 5,135,400
7,280 Wisconsin St Hlth & Ed Fac Auth Rev Children's
Hosp (Prerefunded @ 08/15/04) (FGIC Insd)....... 5.000 08/15/10 7,443,800
-------------
12,579,200
-------------
GUAM 0.9%
5,000 Guam Pwr Auth Rev Ser A (AMBAC Insd)............ 5.250 10/01/34 5,112,850
-------------
PUERTO RICO 0.4%
2,000 Puerto Rico Muni Fin Agy Ser A (FSA Insd)....... 5.250 08/01/20 2,133,840
-------------
TOTAL LONG-TERM INVESTMENTS 149.8%
(Cost $832,441,673)....................................................... 866,682,382
SHORT-TERM INVESTMENT 0.2%
(Cost $1,200,000)......................................................... 1,200,000
-------------
TOTAL INVESTMENTS 150.0%
(Cost $833,641,673)....................................................... 867,882,382
OTHER ASSETS IN EXCESS OF LIABILITIES 1.9%................................. 10,825,526
PREFERRED SHARES (INCLUDING ACCRUED DISTRIBUTIONS) (51.9%)................. (300,064,591)
-------------
NET ASSETS APPLICABLE TO COMMON SHARES 100.0%.............................. $ 578,643,317
=============
</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 5.0% of net
assets.
See Notes to Financial Statements 21
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
(b) 144A securities are those which are exempt from registration under Rule 144A
of the Securities Act of 1933, as amended. These securities may only be
resold in transactions exempt from registration which are normally those
transactions with qualified institutional buyers.
(c) Security converts to a fixed coupon rate at a predetermined date.
(d) Issuer has filed for protection in federal bankruptcy court.
(e) Non-income producing security.
(f) An Inverse Floating Rate security is one where the coupon is inversely
indexed to a short-term floating interest rate multiplied by a specific
factor. As the floating rate rises, the coupon is reduced. Conversely, as
the floating rate declines, the coupon is increased. The price of these
securities may be more volatile than the price of a comparable fixed rate
security. These instruments are typically used by the Trust to enhance the
yield of the portfolio. 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.
ACA--American Capital Access
AMBAC--AMBAC Indemnity Corp.
AMT--Alternative Minimum Tax
Asset Gty--Asset Guaranty Insurance Co.
Connie Lee--Connie Lee Insurance Co.
FGIC--Financial Guaranty Insurance Co.
FSA--Financial Security Assurance Inc.
GNMA--Government National Mortgage Association
MBIA--Municipal Bond Investors Assurance Corp.
XLCA--XL Capital Assurance Inc.
22 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL TRUST
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
April 30, 2004 (Unaudited)
<Table>
ASSETS:
Total Investments (Cost $833,641,673)....................... $867,882,382
Cash........................................................ 137,839
Receivables:
Interest.................................................. 11,981,217
Investments Sold.......................................... 2,667,350
Other....................................................... 2,924
------------
Total Assets............................................ 882,671,712
------------
LIABILITIES:
Payables:
Investments Purchased..................................... 2,772,450
Investment Advisory Fee................................... 437,814
Income Distributions--Common Shares....................... 168,191
Other Affiliates.......................................... 56,261
Administrative Fee........................................ 36,485
Trustees' Deferred Compensation and Retirement Plans........ 332,284
Accrued Expenses............................................ 160,319
------------
Total Liabilities....................................... 3,963,804
Preferred Shares (including accrued distributions).......... 300,064,591
------------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $578,643,317
============
NET ASSET VALUE PER COMMON SHARE ($578,643,317 divided by
36,365,393 shares outstanding)............................ $ 15.91
============
NET ASSETS CONSIST OF:
Common Shares ($.01 par value with an unlimited number of
shares authorized, 36,365,393 shares issued and
outstanding).............................................. $ 363,654
Paid in Surplus............................................. 538,413,497
Net Unrealized Appreciation................................. 34,240,709
Accumulated Undistributed Net Investment Income............. 3,969,747
Accumulated Net Realized Gain............................... 1,655,710
------------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $578,643,317
============
PREFERRED SHARES ($.01 par value, authorized 100,000,000
shares, 12,000 issued with liquidation preference of
$25,000 per share)........................................ $300,000,000
============
NET ASSETS INCLUDING PREFERRED SHARES....................... $878,643,317
============
</Table>
See Notes to Financial Statements 23
VAN KAMPEN MUNICIPAL TRUST
FINANCIAL STATEMENTS continued
Statement of Operations
For the Six Months Ended April 30, 2004 (Unaudited)
<Table>
INVESTMENT INCOME:
Interest.................................................... $ 22,073,760
------------
EXPENSES:
Investment Advisory Fee..................................... 2,692,353
Preferred Share Maintenance................................. 398,568
Administrative Fee.......................................... 224,363
Trustees' Fees and Related Expenses......................... 91,191
Legal....................................................... 57,585
Custody..................................................... 25,379
Other....................................................... 198,918
------------
Total Expenses.......................................... 3,688,357
------------
NET INVESTMENT INCOME....................................... $ 18,385,403
============
REALIZED AND UNREALIZED GAIN/LOSS:
Realized Gain/Loss:
Investments............................................... $ 1,753,196
Futures................................................... (333,975)
------------
Net Realized Gain........................................... 1,419,221
------------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 46,947,631
End of the Period......................................... 34,240,709
------------
Net Unrealized Depreciation During the Period............... (12,706,922)
------------
NET REALIZED AND UNREALIZED LOSS............................ $(11,287,701)
============
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS..................... $ (1,448,847)
============
NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM
OPERATIONS................................................ $ 5,648,855
============
</Table>
24 See Notes to Financial Statements
VAN KAMPEN 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................................... $ 18,385,403 $ 37,242,943
Net Realized Gain....................................... 1,419,221 2,809,023
Net Unrealized Appreciation/Depreciation During the
Period................................................ (12,706,922) 1,757,060
Distributions to Preferred Shareholders:
Net Investment Income................................. (1,371,484) (3,055,413)
Net Realized Gain..................................... (77,363) -0-
------------ ------------
Change in Net Assets Applicable to Common Shares from
Operations............................................ 5,648,855 38,753,613
Distributions to Common Shareholders:
Net Investment Income................................. (17,018,202) (34,036,119)
Net Realized Gain..................................... (869,098) -0-
------------ ------------
NET CHANGE IN NET ASSETS APPLICABLE TO COMMON SHARES
FROM INVESTMENT ACTIVITIES............................ (12,238,445) 4,717,494
NET ASSETS APPLICABLE TO COMMON SHARES:
Beginning of the Period................................. 590,881,762 586,164,268
------------ ------------
End of the Period (Including accumulated undistributed
net investment income of $3,969,747 and $3,974,030,
respectively)......................................... $578,643,317 $590,881,762
============ ============
</Table>
See Notes to Financial Statements 25
VAN KAMPEN 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
APRIL 30, ------------------------------
2004 2003 2002 (a) 2001
-------------------------------------------
NET ASSET VALUE, BEGINNING OF THE PERIOD......... $ 16.25 $ 16.12 $ 16.07 $ 14.91
------- ------- ------- -------
Net Investment Income.......................... .51 1.02 1.06 1.13
Net Realized and Unrealized Gain/Loss.......... (.32) .13 .01 1.12
Common Share Equivalent of Distributions Paid
to Preferred Shareholders:
Net Investment Income........................ (.04) (.08) (.11) (.27)
Net Realized Gain............................ -0-(f) -0- -0- -0-
------- ------- ------- -------
Total from Investment Operations................. .15 1.07 .96 1.98
Distributions Paid to Common Shareholders:
Net Investment Income........................ (.47) (.94) (.91) (.82)
Net Realized Gain............................ (.02) -0- -0- -0-
------- ------- ------- -------
NET ASSET VALUE, END OF THE PERIOD............... $ 15.91 $ 16.25 $ 16.12 $ 16.07
======= ======= ======= =======
Common Share Market Price at End of the Period... $ 13.88 $ 14.57 $ 14.30 $ 13.79
Total Return (b)................................. -1.57%* 8.60% 10.49% 15.97%
Net Assets Applicable to Common Shares at End of
the Period (In millions)....................... $ 578.6 $ 590.9 $ 586.2 $ 584.4
Ratio of Expenses to Average Net Assets
Applicable to Common Shares (c)................ 1.23% 1.23% 1.35% 1.55%
Ratio of Net Investment Income to Average Net
Assets Applicable to Common Shares (c)......... 6.14% 6.28% 6.70% 7.26%
Portfolio Turnover............................... 7%* 24% 38% 28%
SUPPLEMENTAL RATIOS:
Ratio of Expenses to Average Net Assets Including
Preferred Shares (c)........................... .82% .81% .89% 1.01%
Ratio of Net Investment Income to Average Net
Assets Applicable to Common Shares (d)......... 5.68% 5.77% 5.98% 5.51%
SENIOR SECURITIES:
Total Preferred Shares Outstanding............... 12,000 12,000 12,000 12,000
Asset Coverage Per Preferred Share (e)........... $73,220 $74,245 $73,861 $73,700
Involuntary Liquidating Preference Per Preferred
Share.......................................... $25,000 $25,000 $25,000 $25,000
Average Market Value Per Preferred Share......... $25,000 $25,000 $25,000 $25,000
</Table>
* Non-Annualized
(a)As required, effective November 1, 2001, the Trust has adopted the provisions
of the AICPA Audit and Accounting Guide for Investment Companies and began
accreting market discount on fixed income securities. The effect of this
change for the year ended October 31, 2002 was to increase net investment
income per share by $.01, decrease net realized and unrealized gains and
losses per share by $.01 and increase the ratio of net investment income to
average net assets applicable to common shares from 6.69% to 6.70%. 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.
(f)Amount is less than $0.01 per share.
26
<Table>
<Caption>
TWO MONTHS
YEAR ENDED OCTOBER 31, ENDED YEAR ENDED AUGUST 31,
- ----------------------- OCTOBER 31, ----------------------------------------------------
2000 1999 1998 1998 1997 1996 1995 1994
- --------------------------------------------------------------------------------------------
$ 14.60 $ 17.39 $ 17.32 $ 16.60 $ 15.84 $ 15.73 $ 15.56 $ 17.04
------- -------- -------- -------- -------- -------- -------- --------
1.17 1.20 .21 1.26 1.28 1.30 1.31 1.34
.42 (2.30) .08 .72 .73 .10 .26 (1.42)
(.34) (.24) (.02) (.30) (.29) (.30) (.32) (.28)
-0- (.06) (.04) -0- -0- -0- -0- -0-
------- -------- -------- -------- -------- -------- -------- --------
1.25 (1.40) .23 1.68 1.72 1.10 1.25 (.36)
(.94) (.96) (.16) (.96) (.96) (.99) (1.08) (1.12)
-0- (.43) -0- -0- -0- -0- -0- -0-
------- -------- -------- -------- -------- -------- -------- --------
$ 14.91 $ 14.60 $ 17.39 $ 17.32 $ 16.60 $ 15.84 $ 15.73 $ 15.56
======= ======== ======== ======== ======== ======== ======== ========
$12.625 $13.1875 $16.8125 $16.1875 $ 15.75 $ 14.50 $ 14.25 $ 15.00
2.80% -14.47% 4.84%* 9.06% 15.87% 8.98% 2.39% -3.94%
$ 542.1 $ 530.9 $ 630.6 $ 628.2 $ 601.9 $ 574.6 $ 570.7 $ 564.4
1.67% 1.60% 1.57% 1.57% 1.61% 1.61% 1.65% 1.64%
8.07% 7.43% 7.20% 7.42% 7.86% 8.08% 8.58% 8.23%
39% 80% 6%* 94% 54% 36% 49% 47%
1.07% 1.06% 1.07% 1.06% 1.07% 1.06% 1.07% 1.09%
5.71% 5.95% 6.48% 5.66% 6.04% 6.20% 6.48% 6.52%
12,000 12,000 6,000 6,000 6,000 6,000 6,000 6,000
$70,177 $ 69,241 $155,104 $154,696 $150,322 $145,764 $145,113 $144,074
$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 27
VAN KAMPEN MUNICIPAL TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2004 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen Municipal Trust (the "Trust") is registered as a diversified,
closed-end management investment company under the Investment Company Act of
1940, as amended. The Trust's investment objective is to seek to provide a high
level of current income exempt from federal income tax, consistent with
preservation of capital. The Trust will invest in a portfolio consisting
substantially of 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 "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.
Short-term securities with remaining maturities of 60 days or less are valued at
amortized cost, which approximates market value.
B. SECURITY TRANSACTIONS Security transactions are recorded on a trade date
basis. Realized gains and losses are determined on an identified cost basis. The
Trust may purchase and sell securities on a "when-issued" or "delayed delivery"
basis, with settlement to occur at a later date. The value of the security so
purchased is subject to market fluctuations during this period. The Trust will
segregate assets with the custodian having an aggregate value at least equal to
the amount of the when-issued or delayed delivery purchase commitments until
payment is made. At April 30, 2004, the Trust had $2,772,450 of when-issued and
delayed delivery purchase commitments.
C. INVESTMENT INCOME Interest income is recorded on an accrual basis. Bond
premium is amortized and discount is accreted over the expected life of each
applicable security.
D. FEDERAL INCOME TAXES It is the Trust's policy to comply with the requirements
of the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no provision for federal income taxes is required.
28
VAN KAMPEN 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........................ $832,902,653
============
Gross tax unrealized appreciation........................... $ 42,304,102
Gross tax unrealized depreciation........................... (7,324,373)
------------
Net tax unrealized appreciation on investments.............. $ 34,979,729
============
</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>
<Caption>
2003
Distribution paid from:
Ordinary Income........................................... $190,906
Long-term capital gain.................................... -0-
--------
$190,906
========
</Table>
As of October 31, 2003, the components of distributable earnings on a tax
basis were as follows:
<Table>
Undistributed ordinary income............................... $65,280
Undistributed long-term capital gain........................ 945,753
</Table>
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 $36,700 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 $39,500
representing Van Kampen's cost of providing accounting and legal services to the
Trust, which are reported as part of "Other" and "Legal" expenses, respectively,
in the Statement of Operations.
29
VAN KAMPEN MUNICIPAL 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 $60,116,170 and $61,101,145,
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. Futures
contracts are valued at the settlement price established each day on the
exchange on which they are traded.
Upon entering into futures contracts, the Trust maintains an amount of cash
or liquid securities with a value equal to a percentage of the contract amount
with either a future commission merchant pursuant to rules and regulations
promulgated under the 1940 Act, as amended, or with its custodian in an account
in the broker's name. This amount is known as initial margin. During the period
the futures contract is open, payments are received from or made to the broker
based upon changes in the value of the contract (the variation margin). The risk
of loss associated with a futures contract is in excess of the variation margin
reflected on the Statement of Assets and Liabilities.
30
VAN KAMPEN MUNICIPAL 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............................. 98
Futures Closed.............................................. (98)
---
Outstanding at April 30, 2004............................... -0-
===
</Table>
5. PREFERRED SHARES
The Trust has outstanding 12,000 Auction Preferred Shares ("APS") in four series
of 3,000 shares each. Dividends are cumulative and the dividend rate is
periodically reset through an auction process. The dividend periods for Series A
and C are generally 7 days. The dividend periods for Series B and D are 28 days.
The average rate in effect on April 30, 2004 was 1.035%. During the six months
ended April 30, 2004, the rates ranged from 0.590% to 1.410%.
The Trust pays annual fees equivalent to .25% of the preferred share
liquidation value for the remarketing efforts associated with the preferred
auctions. These fees are included as a component of "Preferred Share
Maintenance" expense in the Statement of Operations.
The APS are redeemable at the option of the Trust in whole or in part at the
liquidation value of $25,000 per share plus accumulated and unpaid dividends.
The Trust is subject to certain asset coverage tests, and the APS are subject to
mandatory redemption if the tests are not met.
31
VAN KAMPEN 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, New York 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.
32
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.
VKQ SAR 6/04 RN04-00737P-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 Municipal 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