UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-6535
Van Kampen Trust For Investment Grade California Municipals
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
1221 Avenue of the Americas, 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
Trust for Investment Grade California Municipals 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 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>
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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>
TRUST FOR INVESTMENT GRADE CALIFORNIA MUNICIPALS
SYMBOL: VIC
- ------------------------------------------------------
AVERAGE ANNUAL BASED ON BASED ON
TOTAL RETURNS NAV MARKET PRICE
Since Inception (03/27/92) 7.70% 6.69%
10-year 7.55 7.80
5-year 5.79 2.95
1-year 2.04 -6.12
6-month 1.22 -7.06
- ------------------------------------------------------
</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 California Municipal Bond Index is a broad-based statistical
composite of California 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 Trust for Investment Grade California Municipals is managed by the
adviser's Municipal Fixed Income team.(1) Current members include Joseph Piraro,
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.
(1)Team members may change without notice at any time.
2
California remained in the municipal spotlight during the period, with many
investors anxiously awaiting the result of the March 2 referendum on
Propositions 57 and 58. These two measures, which voters ultimately approved,
gave the green light to a roughly $15 billion economic-improvement bond that
will begin to enter the market in early June. The passage of these measures led
the major ratings agencies to increase their outlooks (though not their ratings)
for the beleaguered state's bonds, with S&P shifting from stable to positive and
Moody's shifting from negative to stable. This surge in issuance will at least
partially offset the surprising decline in new debt in the first quarter of
2004, which was one-third lower than the first quarter of last year. The
majority of debt issued by the state for the entire six-month period offered
credit enhancements, with fully two thirds of debt coming to market with credit
insurance.
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 California 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 somewhat 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
TOTAL RETURN FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2004
<Table>
<Caption>
- ------------------------------------------------------------------------
BASED ON BASED ON LEHMAN BROTHERS CALIFORNIA
NAV MARKET PRICE MUNICIPAL BOND INDEX
1.22% -7.06% 1.53%
- ------------------------------------------------------------------------
</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
fell; however, it helped buoy returns when interest rates rose 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 an 87 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 18- to 22-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 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 the sale of pre-refunded bonds. In other cases we
sold bonds that met their performance objectives during the period. We
reinvested this 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 sources of
return as possible. Our strategy during the period emphasized bonds tied to
essential services, and de-emphasized housing and health-care bonds. The three
largest sector exposures at the end of the period were public education, tax
districts and industrial revenue.
<Table>
TOP 5 SECTORS AS OF 4/30/04 RATINGS ALLOCATIONS AS OF 4/30/04
Public Education 18.3% AAA/Aaa 81.4%
Tax District 12.5 AA/Aa 6.1
Industrial Revenue 11.5 BBB/Baa 12.5
Transportation 11.4
Public Building 7.8
</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 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 TRUST FOR INVESTMENT GRADE CALIFORNIA MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED)
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- --------------------------------------------------------------------------------------------
MUNICIPAL BONDS 159.8%
CALIFORNIA 158.3%
$1,020 A B C CA Uni Sch Dist Cap Apprec Ser B (FGIC
Insd)........................................... * 08/01/17 $ 535,265
1,000 Abag Fin Auth For Nonprofit Corp CA Multi-Family
Rev Hsg Utd Dominion Ser A Rfdg (Asset Gty Insd)
(AMT)........................................... 6.400% 08/15/30 1,112,040
3,540 Anaheim, CA Pub Fin Auth Lease Rev Cap Apprec
Pub Impt Proj Ser C (FSA Insd).................. * 09/01/32 721,027
1,000 Banning, CA Cmnty Redev Agy Tax Alloc Merged
Downtown (Radian Insd).......................... 5.000 08/01/23 970,450
2,000 Bay Area Toll Auth CA Toll Brdg Rev San
Francisco Bay Area Ser D........................ 5.000 04/01/17 2,077,620
3,535 Brea, CA Redev Agy Tax Alloc Ser A Rfdg (AMBAC
Insd)........................................... 5.500 08/01/20 3,799,736
1,000 California Ed Fac Auth Rev Pooled College & Univ
Proj Ser B...................................... 6.750 06/01/30 1,071,840
1,000 California Ed Fac Auth Rev Pooled College & Univ
Proj Ser B (Partially prerefunded @ 04/01/09)... 5.250 04/01/24 963,480
835 California Ed Fac Auth Rev Student Ln CA Ln Pgm
Ser A (MBIA Insd) (AMT)......................... 6.000 03/01/16 881,743
565 California Hlth Fac Fin Auth Rev Hlth Fac Small
Fac Ln Ser A (CA MTG Insd)...................... 6.700 03/01/11 566,141
850 California Hlth Fac Fin Auth Rev Hlth Fac Small
Fac Ln Ser A (CA MTG Insd)...................... 6.750 03/01/20 852,958
2,500 California Hlth Fac Fin Auth Rev Insd Hlth Fac
Vlycare Ser A (CA MTG Insd)..................... 6.125 05/01/12 2,503,325
1,000 California Hsg Fin Agy Rev Home Mtg Ser M (MBIA
Insd) (AMT)..................................... 5.550 08/01/17 1,043,350
1,000 California Hsg Fin Agy Rev Multi-Family Hsg III
Ser A (MBIA Insd) (AMT)......................... 5.850 08/01/17 1,042,860
2,000 California Infrastructure & Econ Dev Bk Rev Bay
Area Toll Brdgs First Lien Ser A (FGIC Insd).... 5.000 07/01/29 2,002,040
4,500 California Pollutn Ctl Fin Auth Pollutn Ctl Rev
Southn CA Edison Co (AMBAC Insd) (AMT).......... 6.000 07/01/27 4,525,335
2,110 California Spl Dists Fin Prog Ser 00 (MBIA
Insd)........................................... 5.250 12/01/26 2,148,782
1,000 California St (CIFG Insd)....................... 5.000 10/01/22 1,013,330
2,000 California St Dept Wtr Res Pwr Ser A (AMBAC
Insd)........................................... 5.500 05/01/16 2,182,960
1,000 California St Dept Wtr Res Wtr Ser W............ 5.500 12/01/17 1,090,450
1,475 California St Pub Wks Brd Dept Corr Ser B Rfdg
(CIFG Insd)..................................... 5.250 01/01/13 1,599,313
1,000 California St Univ Fresno Assn Sr Aux
Organization Event Ctr.......................... 6.000 07/01/26 1,015,490
1,000 California St Vet Bd Ser BH (FSA Insd) (AMT).... 5.400 12/01/15 1,041,020
2,000 California St Vet Bd Ser BH (FSA Insd) (AMT).... 5.400 12/01/16 2,082,040
1,085 Cathedral City, CA Pub Fin Auth Rev Cap Apprec
Ser A (MBIA Insd)............................... * 08/01/30 249,691
</Table>
6 See Notes to Financial Statements
VAN KAMPEN TRUST FOR INVESTMENT GRADE CALIFORNIA MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- --------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
$1,085 Cathedral City, CA Pub Fin Auth Rev Cap Apprec
Ser A (MBIA Insd)............................... * 08/01/31 $ 235,608
1,000 Chaffey, CA Uni High Sch Dist Ser C (FSA
Insd)........................................... 5.000% 05/01/27 1,003,230
1,700 Chino Vly Uni Sch Dist CA Ctf Part Ser A Rfdg
(FSA Insd)...................................... 5.375 09/01/20 1,824,202
1,700 Chula Vista, CA Indl Dev Rev San Diego Gas &
Elec Co Ser A (AMBAC Insd) (AMT)................ 6.400 12/01/27 1,751,850
2,900 Colton, CA Jt Uni Sch Dist Ser A (FGIC Insd).... 5.500 08/01/22 3,094,851
1,000 Colton, CA Redev Agy Tax Alloc Mt Vernon
Corridor Redev Proj............................. 6.300 09/01/36 1,046,750
1,000 Corona CA Ctf Part Clearwater Cogeneration Proj
(MBIA Insd)..................................... 5.000 09/01/17 1,038,870
1,360 Csuci Fin Auth Rev CA East Campus Cmnty Ser A
(MBIA Insd) (LOC--Citibank)..................... 5.125 09/01/21 1,403,520
1,245 Duarte, CA Multi-Family Rev Hsg Heritage Park
Apt Ser A (FNMA Collateralized) (AMT)........... 5.850 05/01/30 1,283,981
1,000 Fairfield Suisun, CA Uni Sch Dist Spl Tax Cmnty
Fac Dist No 5 New Sch (FSA Insd)................ 5.375 08/15/29 1,026,900
1,000 Folsom, CA Spl Tax Cmnty Fac Dist No 2 Rfdg
(Connie Lee Insd)............................... 5.250 12/01/19 1,056,410
1,950 Fontana, CA Redev Agy Tax Alloc Southwest Indl
Park Proj (MBIA Insd)........................... 5.200 09/01/30 1,973,673
10,000 Foothill/Eastern Corridor Agy CA Toll Rd Rev Cap
Apprec Rfdg..................................... * 01/15/25 2,907,500
3,000 Foothill/Eastern Corridor Agy CA Toll Rd Rev
Conv Cap Apprec Sr Lien Ser A (Escrowed to
Maturity) (a)................................... 0/7.050 01/01/10 3,445,290
1,680 Glendale, CA Uni Sch Dist Ser D (MBIA Insd)..... 5.250 09/01/17 1,788,326
1,000 Imperial Irr Dist CA Ctf Part Elec Sys Proj (FSA
Insd)........................................... 5.250 11/01/23 1,033,630
1,000 Industry, CA Urban Dev Agy Tax Alloc Civic Rec
Ind-1 Rfdg (MBIA Insd).......................... 5.500 05/01/14 1,091,440
1,000 Kern, CA Cmnty College Sch Fac Impt Dist Mammoth
Campus/Kern Cmnty (AMBAC Insd).................. * 08/01/22 381,820
1,000 Laguna Hills, CA Ctf Part Cmnty Ctr Proj (MBIA
Insd)........................................... 5.000 12/01/18 1,037,000
1,105 Larkspur, CA Sch Dist Cap Apprec Ser A (FGIC
Insd)........................................... * 08/01/20 478,609
1,000 Loma Linda, CA Redev Agy Tax Loma Linda Redev
Proj Rfdg (MBIA Insd)........................... 5.125 07/01/30 1,011,810
1,000 Los Angeles, CA Cmnty College Dist Ser A (MBIA
Insd)........................................... 5.000 06/01/26 1,002,940
1,000 Los Angeles, CA Ctf Part Sr Sonnenblick Del Rio
W L. A. (AMBAC Insd)............................ 6.000 11/01/19 1,134,960
1,473 Los Angeles, CA Multi-Family Rev Hsg Earthquake
Rehab Proj Ser A (FNMA Collateralized) (AMT).... 5.700 12/01/27 1,564,796
1,000 Los Angeles, CA Wtr & Pwr Rev Ser A............. 5.250 07/01/18 1,043,100
</Table>
See Notes to Financial Statements 7
VAN KAMPEN TRUST FOR INVESTMENT GRADE CALIFORNIA MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- --------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
$1,000 Los Gatos, CA Jt Uni High Sch Election of 1998
Ser C (FSA Insd)................................ 5.000% 06/01/27 $ 1,003,220
1,000 Mendocino Cnty, CA Ctf Part Cnty Pub Fac Corp
(MBIA Insd)..................................... 5.250 06/01/30 1,019,490
1,000 Metropolitan Wtr Dist Southn CA Auth Ser B2
(FGIC Insd)..................................... 5.000 10/01/26 1,005,560
1,000 Oakland, CA Uni Sch Dist Alameda Cnty (FSA
Insd)........................................... 5.000 08/01/17 1,027,090
1,000 Oxnard, CA Uni High Sch Dist Ser A Rfdg (MBIA
Insd)........................................... 6.200 08/01/30 1,127,120
1,500 Placentia-Yorba Linda CA Un Ser A (FGIC Insd)... 5.000 08/01/26 1,507,440
3,000 Port Oakland, CA Ser N Rfdg (MBIA Insd) (AMT)... 5.000 11/01/22 3,015,480
1,220 Rancho Mirage, CA Redev Agy Tax Redev Plan 1984
Proj Ser A 1 (MBIA Insd)........................ 5.000 04/01/26 1,221,928
1,000 Redlands, CA Redev Agy Tax Alloc Redev Proj Ser
A Rfdg (MBIA Insd).............................. 4.750 08/01/21 993,530
1,650 Roseville, CA Jt Uni High Sch Dist Ser B (FGIC
Insd)........................................... * 06/01/20 721,842
1,000 Salinas Vly CA Solid Waste Auth Rev (AMBAC Insd)
(AMT)........................................... 5.250 08/01/27 1,011,670
1,000 San Bernardino Cnty, CA Ctf Part Med Cent Fin
Proj (MBIA Insd)................................ 5.000 08/01/28 990,900
4,000 San Diego, CA Indl Dev Rev San Diego Gas & Elec
Ser A (AMBAC Insd).............................. 6.100 09/01/19 4,054,440
1,500 San Diego, CA Redev Agy Centre City Redev Proj
Ser A........................................... 6.400 09/01/25 1,570,305
1,185 San Francisco, CA City & Cnty Arpt Commn Intl
Arpt Rev Second Ser Issue 15B (MBIA Insd)....... 4.800 05/01/17 1,204,505
1,685 San Francisco, CA City & Cnty Arpt Commn Intl
Arpt Rev Spl Fac Lease Ser A (FSA Insd) (AMT)... 6.125 01/01/27 1,819,278
1,000 San Francisco, CA City & Cnty Arpt Commn Intl
Arpt Second Ser 27A Rfdg (MBIA Insd) (AMT)...... 5.250 05/01/26 1,007,280
1,000 San Francisco, CA City & Cnty Arpt Commn Intl
Arpt Second Ser 30 Rfdg (XLCA Insd)............. 5.250 05/01/16 1,074,470
1,000 Sanger, CA Uni Sch Dist Rfdg (MBIA Insd)........ 5.600 08/01/23 1,109,750
1,500 Santa Ana, CA Multi-Family Hsg Rev Villa Del Sol
Apts Ser B (FNMA Collateralized) (AMT).......... 5.650 11/01/21 1,518,705
2,000 Santa Ana, CA Uni Sch Dist (MBIA Insd).......... 5.375 08/01/27 2,079,520
1,000 Santa Ana, CA Uni Sch Dist Ctf Part Cap Apprec
Fin Proj (FSA Insd)............................. * 04/01/36 165,010
2,000 Santa Margarita/Dana Point Impt Dist 3-3A-4-4A
Ser A (AMBAC Insd) (b).......................... 5.000 08/01/15 2,126,060
2,000 South Orange Cnty, CA Pub Fin Auth Reassmt Rev
(FSA Insd)...................................... 5.800 09/02/18 2,237,100
55 Southern CA Home Fin Auth Single Family Mtg Rev
Ser A (GNMA Collateralized) (AMT)............... 6.750 09/01/22 55,015
</Table>
8 See Notes to Financial Statements
VAN KAMPEN TRUST FOR INVESTMENT GRADE CALIFORNIA MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- --------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
$1,000 Stockton, CA Hlth Fac Rev Saint Joseph Med Cent
Ser A (MBIA Insd)............................... 5.625% 06/01/13 $ 1,023,840
1,300 Taft, CA City Elem Sch Dist Ser A (MBIA Insd)... * 08/01/22 496,366
2,000 University of CA Ctf Part San Diego Campus Proj
Ser A........................................... 5.250 01/01/32 2,026,940
1,000 University of CA Rev Gen Ser A (AMBAC Insd)..... 5.000 05/15/26 1,005,400
1,200 Ventura Cnty, CA Cmnty College Dist Ser A (MBIA
Insd)........................................... 5.500 08/01/23 1,270,812
1,000 Vista, CA Uni Sch Dist Ser A (FSA Insd)......... 5.000 08/01/23 1,015,810
2,000 William S Hart CA Jt Sch Fin Auth Spl Tax Rev
Cmnty Fac Rfdg (FSA Insd)....................... 6.500 09/01/14 2,163,340
1,000 Woodland, CA Fin Auth Lease Rev Cap Proj Rfdg
(XLCA Insd)..................................... 5.000 03/01/25 1,002,840
------------
116,425,408
------------
U. S. VIRGIN ISLANDS 1.5%
1,000 Virgin Islands Pub Fin Auth Rev Gross Rcpt Taxes
Ln Nt Ser A..................................... 6.375 10/01/19 1,113,670
------------
TOTAL LONG-TERM INVESTMENTS 159.8%
(Cost $113,281,248)........................................................ 117,539,078
SHORT-TERM INVESTMENTS 2.6%
(Cost $1,900,000).......................................................... 1,900,000
------------
TOTAL INVESTMENTS 162.4%
(Cost $115,181,248)........................................................ 119,439,078
LIABILITIES IN EXCESS OF OTHER ASSETS (1.2%)................................ (867,472)
PREFERRED SHARES (INCLUDING ACCRUED DISTRIBUTIONS) (61.2%).................. (45,029,202)
------------
NET ASSETS APPLICABLE TO COMMON SHARES 100.0%............................... $ 73,542,404
============
</Table>
* Zero coupon bond
(a) Security is a "step-up" bond where the coupon increases or steps up at a
predetermined date.
(b) Securities purchased on a when-issued or delayed delivery basis.
See Notes to Financial Statements 9
VAN KAMPEN TRUST FOR INVESTMENT GRADE CALIFORNIA MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
AMBAC--AMBAC Indemnity Corp.
AMT--Alternative Minimum Tax
Asset Gty--Asset Guaranty Insurance Co.
CA MTG--California Mortgage Insurance
CIFG--CDC IXIS Financial Guaranty
Connie Lee--Connie Lee Insurance Co.
FGIC--Financial Guaranty Insurance Co.
FNMA--Federal National Mortgage Association
FSA--Financial Security Assurance Inc.
GNMA--Government National Mortgage Association
LOC--Letter of Credit
MBIA--Municipal Bond Investors Assurance Corp.
Radian--Radian Asset Assurance
XLCA--XL Capital Assurance Inc.
10 See Notes to Financial Statements
VAN KAMPEN TRUST FOR INVESTMENT GRADE CALIFORNIA MUNICIPALS
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
April 30, 2004 (Unaudited)
<Table>
ASSETS:
Total Investments (Cost $115,181,248)....................... $119,439,078
Cash........................................................ 73,975
Interest Receivable......................................... 1,681,578
Other....................................................... 531
------------
Total Assets............................................ 121,195,162
------------
LIABILITIES:
Payables:
Investments Purchased..................................... 2,274,560
Investment Advisory Fee................................... 58,967
Income Distributions--Common Shares....................... 23,781
Other Affiliates.......................................... 8,876
Administrative Fee........................................ 4,914
Trustees' Deferred Compensation and Retirement Plans........ 195,958
Accrued Expenses............................................ 56,500
------------
Total Liabilities....................................... 2,623,556
Preferred Shares (including accrued distributions).......... 45,029,202
------------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $ 73,542,404
============
NET ASSET VALUE PER COMMON SHARE ($73,542,404 divided by
4,676,173 shares outstanding)............................. $ 15.73
============
NET ASSETS CONSIST OF:
Common Shares ($.01 par value with an unlimited number of
shares authorized, 4,676,173 shares issued and
outstanding).............................................. $ 46,762
Paid in Surplus............................................. 68,747,251
Net Unrealized Appreciation................................. 4,257,830
Accumulated Undistributed Net Investment Income............. 374,592
Accumulated Net Realized Gain............................... 115,969
------------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $ 73,542,404
============
PREFERRED SHARES ($.01 par value, authorized 100,000,000
shares, 1,800 issued with liquidation preference of
$25,000 per share)........................................ $ 45,000,000
============
NET ASSETS INCLUDING PREFERRED SHARES....................... $118,542,404
============
</Table>
See Notes to Financial Statements 11
VAN KAMPEN TRUST FOR INVESTMENT GRADE CALIFORNIA MUNICIPALS
FINANCIAL STATEMENTS continued
Statement of Operations
For the Six Months Ended April 30, 2004 (Unaudited)
<Table>
INVESTMENT INCOME:
Interest.................................................... $ 3,024,080
-----------
EXPENSES:
Investment Advisory Fee..................................... 362,662
Preferred Share Maintenance................................. 63,205
Trustees' Fees and Related Expenses......................... 38,231
Administrative Fee.......................................... 30,223
Legal....................................................... 10,750
Custody..................................................... 3,870
Other....................................................... 66,120
-----------
Total Expenses.......................................... 575,061
-----------
NET INVESTMENT INCOME....................................... $ 2,449,019
===========
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Gain........................................... $ 116,601
-----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 5,685,487
End of the Period......................................... 4,257,830
-----------
Net Unrealized Depreciation During the Period............... (1,427,657)
-----------
NET REALIZED AND UNREALIZED LOSS............................ $(1,311,056)
===========
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS..................... $ (234,226)
===========
NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM
OPERATIONS................................................ $ 903,737
===========
</Table>
12 See Notes to Financial Statements
VAN KAMPEN TRUST FOR INVESTMENT GRADE CALIFORNIA MUNICIPALS
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................................... $ 2,449,019 $ 5,075,627
Net Realized Gain....................................... 116,601 678,004
Net Unrealized Depreciation During the Period........... (1,427,657) (521,646)
Distributions to Preferred Shareholders:
Net Investment Income................................. (183,813) (367,148)
Net Realized Gain..................................... (50,413) (62,699)
----------- -----------
Change in Net Assets Applicable to Common Shares from
Operations............................................ 903,737 4,802,138
Distributions to Common Shareholders:
Net Investment Income................................. (2,394,175) (5,053,725)
Net Realized Gain..................................... (651,121) (1,181,979)
----------- -----------
NET CHANGE IN NET ASSETS APPLICABLE TO COMMON SHARES
FROM INVESTMENT ACTIVITIES............................ (2,141,559) (1,433,566)
FROM CAPITAL TRANSACTIONS:
Value of Common Shares Issued Through Dividend
Reinvestment.......................................... 136,145 26,165
----------- -----------
TOTAL DECREASE IN NET ASSETS APPLICABLE TO COMMON
SHARES................................................ (2,005,414) (1,407,401)
NET ASSETS APPLICABLE TO COMMON SHARES:
Beginning of the Period................................. 75,547,818 76,955,219
----------- -----------
End of the Period (Including accumulated undistributed
net investment income of $374,592 and $503,561,
respectively)......................................... $73,542,404 $75,547,818
=========== ===========
</Table>
See Notes to Financial Statements 13
VAN KAMPEN TRUST FOR INVESTMENT GRADE CALIFORNIA MUNICIPALS
FINANCIAL HIGHLIGHTS (UNAUDITED)
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE
TRUST OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
<Table>
<Caption>
SIX MONTHS
ENDED
APRIL 30, --------------------
2004 2003 2002 (a)
----------------------------------
NET ASSET VALUE, BEGINNING OF THE PERIOD................. $ 16.18 $ 16.49 $ 16.81
------- -------- --------
Net Investment Income.................................. .52 1.08 1.16
Net Realized and Unrealized Gain/Loss.................. (.27) .03 (.10)
Common Share Equivalent of Distributions Paid to
Preferred Shareholders:
Net Investment Income................................ (.04) (.08) (.07)
Net Realized Gain.................................... (.01) (.01) (.08)
------- -------- --------
Total from Investment Operations......................... .20 1.02 .91
Distributions Paid to Common Shareholders:
Net Investment Income.................................. (.51) (1.08) (.98)
Net Realized Gain...................................... (.14) (.25) (.25)
------- -------- --------
NET ASSET VALUE, END OF THE PERIOD....................... $ 15.73 $ 16.18 $ 16.49
======= ======== ========
Common Share Market Price at End of the Period........... $ 14.14 $ 15.84 $ 16.37
Total Return (b)......................................... -7.06%* 5.09% 13.41%
Net Assets Applicable to Common Shares at End of the
Period (In millions)................................... $ 73.5 $ 75.5 $ 77.0
Ratio of Expenses to Average Net Assets Applicable to
Common Shares (c)...................................... 1.51% 1.47% 1.56%
Ratio of Net Investment Income to Average Net Assets
Applicable to Common Shares (c)........................ 6.43% 6.65% 7.13%
Portfolio Turnover....................................... 3%* 17% 21%
SUPPLEMENTAL RATIOS:
Ratio of Expenses to Average Net Assets Including
Preferred Shares (c)................................... .95% .93% .98%
Ratio of Net Investment Income to Average Net Assets
Applicable to Common Shares (d)........................ 5.95% 6.17% 6.68%
SENIOR SECURITIES:
Total Preferred Shares Outstanding....................... 1,800 1,800 1,800
Asset Coverage Per Preferred Share (e)................... $65,873 $ 66,977 $ 67,762
Involuntary Liquidating Preference Per Preferred Share... $25,000 $ 25,000 $ 25,000
Average Market Value Per Preferred Share................. $25,000 $ 25,000 $ 25,000
</Table>
* Non-Annualized
(a)As required, effective November 1, 2001, the Trust has adopted the provisions
of the AICPA Audit and Accounting Guide for Investment Companies and began
accreting market discount on fixed income securities. The effect of this
change for the year ended October 31, 2002 was to increase net investment
income per share by $.01, decrease net realized and unrealized gains and
losses per share by $.01 and increase the ratio of net investment income to
average net assets applicable to common shares from 7.11% to 7.13%. Per
share, ratios, and supplemental data for periods prior to October 31, 2002
have not been restated to reflect this change in presentation.
(b)Total return assumes an investment at the common share market price at the
beginning of the period indicated, reinvestment of all distributions for the
period in accordance with the Trust's dividend reinvestment plan, and sale of
all shares at the closing common share market price at the end of the period
indicated.
(c)Ratios do not reflect the effect of dividend payments to preferred
shareholders.
(d)Ratios reflect the effect of dividend payments to preferred shareholders.
(e)Calculated by subtracting the Trust's total liabilities (not including the
preferred shares) from the Trust's total assets and dividing this by the
number of preferred shares outstanding.
14
<Table>
<Caption>
YEAR ENDED OCTOBER 31,
- ---------------------------------------------------------------------------------------
2001 2000 1999 1998 1997 1996 1995 1994
- ---------------------------------------------------------------------------------------
$ 15.84 $ 15.10 $ 17.51 $ 17.16 $ 16.58 $ 16.29 $ 14.67 $ 17.64
------- ------- ------- -------- -------- -------- -------- --------
1.16 1.22 1.19 1.24 1.26 1.30 1.30 1.28
1.03 .84 (1.95) .70 .84 .40 1.64 (3.00)
(.29) (.33) (.22) (.28) (.27) (.32) (.40) (.26)
(.01) -0- (.10) (.07) (.06) (.04) -0- (.01)
------- ------- ------- -------- -------- -------- -------- --------
1.89 1.73 (1.08) 1.59 1.77 1.34 2.54 (1.99)
(.92) (.99) (.99) (.99) (.99) (.96) (.92) (.92)
-0- -0- (.34) (.25) (.20) (.09) -0- (.06)
------- ------- ------- -------- -------- -------- -------- --------
$ 16.81 $ 15.84 $ 15.10 $ 17.51 $ 17.16 $ 16.58 $ 16.29 $ 14.67
======= ======= ======= ======== ======== ======== ======== ========
$ 15.59 $16.125 $14.375 $ 18.00 $ 16.75 $ 15.75 $ 14.75 $ 12.75
2.45% 19.77% -13.54% 15.46% 12.96% 14.14% 23.60% -16.67%
$ 78.5 $ 73.8 $ 70.2 $ 81.0 $ 79.3 $ 76.6 $ 75.3 $ 67.8
1.74% 1.80% 1.74% 1.71% 1.77% 1.80% 1.83% 1.79%
7.17% 7.98% 7.15% 7.16% 7.57% 7.97% 8.39% 7.91%
27% 28% 25% 27% 23% 16% 13% 14%
1.09% 1.10% 1.10% 1.10% 1.12% 1.13% 1.12% 1.12%
5.37% 5.81% 5.84% 5.54% 5.93% 5.97% 5.83% 6.31%
1,800 1,800 1,800 900 900 900 900 900
$68,588 $66,008 $64,025 $140,049 $138,057 $135,121 $133,628 $125,291
$25,000 $25,000 $25,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
$25,000 $25,000 $25,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
</Table>
See Notes to Financial Statements 15
VAN KAMPEN TRUST FOR INVESTMENT GRADE CALIFORNIA MUNICIPALS
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2004 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen Trust for Investment Grade California Municipals (the "Trust") is
registered as a diversified, closed-end management investment company under the
Investment Company Act of 1940, as amended. The Trust's investment objective is
to provide a high level of current income exempt from federal and California
income taxes, consistent with preservation of capital. The Trust will invest in
a portfolio consisting substantially of California municipal obligations rated
investment grade at the time of investment. The Trust commenced investment
operations on March 27, 1992. 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 $2,274,560 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.
16
VAN KAMPEN TRUST FOR INVESTMENT GRADE CALIFORNIA MUNICIPALS
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........................ $115,100,697
============
Gross tax unrealized appreciation........................... $ 4,773,778
Gross tax unrealized depreciation........................... (435,397)
------------
Net tax unrealized appreciation on investments.............. $ 4,338,381
============
</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........................................... $ 61,045
Long-term capital gain.................................... 1,230,078
----------
$1,291,123
==========
</Table>
As of October 31, 2003, the components of distributable earnings on a tax
basis were as follows:
<Table>
Undistributed ordinary income............................... $176,196
Undistributed long-term capital gain........................ 529,938
</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 Funds 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 $4,000 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 $13,800
representing Van Kampen's cost of providing accounting and legal services to the
Trust, which are reported as part of "Other" and "Legal" expenses, respectively,
in the Statement of Operations.
17
VAN KAMPEN TRUST FOR INVESTMENT GRADE CALIFORNIA MUNICIPALS
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. CAPITAL TRANSACTIONS
At April 30, 2004 and October 31, 2003, paid in surplus related to common shares
aggregated $68,747,251 and $68,611,189, respectively.
Transactions in common shares were as follows:
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2004 OCTOBER 31, 2003
Beginning Shares........................................ 4,667,882 4,666,320
--------- ---------
Shares Issued Through Dividend Reinvestment............. 8,291 1,562
--------- ---------
Ending Shares........................................... 4,676,173 4,667,882
========= =========
</Table>
4. INVESTMENT TRANSACTIONS
During the period, the cost of purchases and proceeds from sales of investments,
excluding short-term investments, were $5,419,590 and $3,447,145, respectively.
5. PREFERRED SHARES
As of April 30, 2004, the Trust has outstanding 1,800 Auction Preferred Shares
("APS"). Dividends are cumulative and the dividend rate is currently reset every
28 days through an auction process. The rate in effect on April 30, 2004 was
1.030%. During the six months ended April 30, 2004, rates ranged from 0.899% to
1.300%.
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.
18
VAN KAMPEN TRUST FOR INVESTMENT GRADE CALIFORNIA MUNICIPALS
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 TRUST FOR INVESTMENT GRADE CALIFORNIA MUNICIPALS
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
change 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 TRUST FOR INVESTMENT GRADE CALIFORNIA MUNICIPALS
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.
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.
VIC SAR 6/04 RN04-00742P-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 Trust For Investment Grade California Municipals
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