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 811-6471
Van Kampen Trust For Investment Grade 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 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 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 MUNICIPALS
SYMBOL: VGM
- ------------------------------------------------------
AVERAGE ANNUAL BASED ON BASED ON
TOTAL RETURNS NAV MARKET PRICE
Since Inception (01/24/92) 8.24% 6.94%
10-year 7.85 6.64
5-year 6.89 4.71
1-year 2.04 -4.19
6-month 1.02 -3.80
- ------------------------------------------------------
</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 broad-based statistical composite of
municipal bonds. The index does not include any expenses, fees or sales charges,
which would lower performance. The index is unmanaged and should not be
considered an investment.
1
Trust Report
FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2004
Van Kampen Trust for Investment Grade Municipals 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
toward the end of 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 as interest rates fell for
much of the period; however, it helped to 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 approximately 88 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
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
1.02% -3.80% 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
the 14- to 19-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 sale of securities at the short end of the yield curve, which
our analysis showed to be vulnerable to rising rates. In other cases we sold
bonds that met their performance objectives. 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 potential
sources of return as possible. The three largest sector exposures at the end of
the period were general purpose, public education and higher education.
As mentioned above, the portfolio's below-market duration served it well in the
final weeks of the period, when interest rates rose sharply. While it is
impossible to predict how long this trend will hold, we believe that the trust
is well positioned to weather further increases in rates. We look forward to
becoming more active in seeking attractive structures and relative-value trading
opportunities now that rates have moved into a more normal range.
<Table>
TOP 5 SECTORS AS OF 4/30/04 RATINGS ALLOCATIONS AS OF 4/30/04
General Purpose 23.5% AAA/Aaa 79.7%
Public Education 11.4 AA/Aa 8.7
Higher Education 9.1 A/A 8.4
Transportation 8.7 BBB/Baa 2.3
Health Care 8.3 BB/Ba 0.3
B/B 0.2
Non-Rated 0.4
</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 TRUST FOR INVESTMENT GRADE MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED)
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
MUNICIPAL BONDS 156.9%
ALABAMA 1.4%
$ 750 Birmingham Baptist Med Ctr AL Baptist Hlth
Sys Ser A.................................. 5.875% 11/15/24 $ 785,857
1,565 Jefferson Cnty, AL Swr Rev Impt Wts Ser A
(Prerefunded @ 02/01/11) (FGIC Insd)....... 5.000 02/01/41 1,711,265
435 Jefferson Cnty, AL Swr Rev Impt Wts Ser A
(Prerefunded @ 02/01/11) (FGIC Insd)....... 5.000 02/01/41 478,130
3,000 Jefferson Cnty, AL Wts Ser A (AMBAC
Insd)...................................... 5.000 04/01/09 3,267,450
-------------
6,242,702
-------------
ARIZONA 2.4%
4,225 Arizona Tourism & Sports Auth Multipurpose
Stadium Fac Ser A (MBIA Insd).............. 5.375 07/01/23 4,462,572
2,800 Phoenix, AZ Civic Impt Corp Arpt Rev Jr
Lien (FGIC Insd) (AMT)..................... 5.375 07/01/29 2,821,560
3,125 Salt River Proj AZ Agric Impt Salt River
Proj Ser A Rfdg............................ 5.250 01/01/06 3,299,594
-------------
10,583,726
-------------
CALIFORNIA 12.9%
2,895 ABC CA Uni Sch Dist Cap Apprec Ser B (FGIC
Insd)...................................... * 08/01/20 1,253,911
1,300 Anaheim, CA Pub Fin Auth Lease Rev Pub Impt
Proj Ser C (FSA Insd)...................... 6.000 09/01/16 1,508,286
3,000 California St (AMBAC Insd)................. 5.125 10/01/27 3,009,270
1,000 California St Dept Wtr Res Pwr Ser A....... 6.000 05/01/15 1,106,170
2,000 California St Dept Wtr Res Pwr Ser A (AMBAC
Insd)...................................... 5.500 05/01/16 2,182,960
4,000 California St Dept Wtr Res Pwr Ser A (AMBAC
Insd)...................................... 5.375 05/01/18 4,285,800
1,320 California St Dept Wtr Res Pwr Ser A (MBIA
Insd)...................................... 5.125 05/01/19 1,372,087
1,000 California St Pub Wks Brd UCLA Replacement
Hosp Ser A (FSA Insd)...................... 5.375 10/01/20 1,059,640
2,000 El Dorado, CA Irr Dist Ctfs Ser A (FGIC
Insd)...................................... 5.000 03/01/21 2,036,340
2,000 Florin, CA Res Consv Dist Cap Impt Elk
Grove Wtr Svc A (MBIA Insd)................ 5.000 09/01/33 1,983,140
3,000 Florin, CA Res Consv Dist Cap Impt Elk
Grove Wtr Svc B (MBIA Insd)................ 5.000 03/01/33 2,974,890
2,000 Foothill/Eastern Corridor Agy CA Toll Rd
Rev Cap Apprec Rfdg (MBIA Insd)............ * 01/15/17 1,021,940
20,750 Foothill/Eastern Corridor Agy CA Toll Rd
Rev Sr Lien Ser A (Escrowed to Maturity)... * 01/01/23 7,907,202
3,000 Fremont, CA Uni Sch Dist Ser A (FGIC
Insd)...................................... 5.000 08/01/25 3,020,760
2,500 Los Angeles, CA Uni Sch Dist Ser A (FSA
Insd)...................................... 5.250 07/01/20 2,644,250
4,020 Oakland, CA Uni Sch Dist (FGIC Insd)....... 5.250 08/01/18 4,249,783
</Table>
6 See Notes to Financial Statements
VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
$ 3,000 Port Oakland, CA Ser M (FGIC Insd)......... 5.250% 11/01/18 $ 3,179,700
2,000 Salinas, CA Uni High Sch Dist Ser A (MBIA
Insd)...................................... 5.000 06/01/27 2,006,440
3,000 San Francisco, CA City & Cnty Second Ser
Issue 29 B Rfdg (FGIC Insd)................ 5.125 05/01/20 3,111,660
1,210 Santa Clara, CA Elec Rev Sub Ser A (MBIA
Insd)...................................... 5.250 07/01/19 1,283,556
3,745 Santa Clarita, CA Cmnty College (FGIC
Insd)...................................... 5.000 08/01/23 3,804,208
3,000 Temecula, CA Redev Agy Tax Temecula Redev
Proj No 1 (MBIA Insd)...................... 5.250 08/01/36 3,025,830
-------------
58,027,823
-------------
COLORADO 2.6%
4,000 Adams & Arapahoe Cntys CO Sch Dist 28 Ser A
(FSA Insd)................................. 5.250 12/01/20 4,252,160
1,000 Arapahoe Cnty, CO Cap Impt Tr Fd Hwy Rev
E-470 Proj Ser B (Prerefunded @
08/31/05).................................. 6.950 08/31/20 1,101,510
2,000 Aurora, CO Ctfs Part (AMBAC Insd).......... 5.500 12/01/30 2,079,300
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
76 Colorado Hsg Fin Auth Single Family Pgm Sr
Ser B1 (AMT)............................... 7.650 11/01/26 77,909
1,805 Lakewood, CO Ctfs Part (AMBAC Insd)........ 5.300 12/01/16 1,935,736
-------------
11,692,835
-------------
CONNECTICUT 1.1%
2,750 Bridgeport, CT Ser A Rfdg (FGIC Insd)...... 5.375 08/15/14 2,995,190
1,830 Connecticut St Spl Oblig Pkg Rev Bradley
Intl Arpt Ser A (AMT) (ACA Insd)........... 6.600 07/01/24 1,964,194
-------------
4,959,384
-------------
DISTRICT OF COLUMBIA 1.0%
2,000 District of Columbia Rev Friendship Pub
Charter Sch Inc (ACA Insd)................. 5.750 06/01/18 2,126,560
505 District of Columbia Ser E (Prerefunded @
06/01/03) (FSA Insd)....................... 6.000 06/01/13 516,857
2,000 Metropolitan Washington DC Arpt Auth Sys
Ser A (AMT) (FGIC Insd).................... 5.250 10/01/32 2,005,300
-------------
4,648,717
-------------
</Table>
See Notes to Financial Statements 7
VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
FLORIDA 10.3%
$10,335 Dade Cnty, FL Spl Oblig Cap Apprec Ser B
Rfdg (Prerefunded @ 10/01/08) (AMBAC
Insd)...................................... * 10/01/26 $ 2,995,806
3,000 Escambia Cnty, FL Hlth Fac Auth Hlth Fac
Rev FL Hlthcare Fac Ln (AMBAC Insd)........ 5.950% 07/01/20 3,133,920
2,500 Florida St Brd Ed Cap Outlay Pub Ed Ser C
(FGIC Insd)................................ 5.750 06/01/29 2,690,500
1,000 Florida St Brd Ed Lottery Rev Ser A (FGIC
Insd)...................................... 6.000 07/01/14 1,139,090
1,400 Florida St Dept Corrections Ctf Part
Okeechobee Correctional (AMBAC Insd)....... 6.250 03/01/15 1,477,882
1,200 Gulf Breeze, FL Rev Loc Govt Ln E (FGIC
Insd) (a).................................. 5.050 12/01/20 1,270,452
1,900 Gulf Breeze, FL Rev Loc Govt Ln E (FGIC
Insd) (a).................................. 5.150 12/01/20 2,073,584
1,000 Highlands Cnty, FL Hlth Fac Auth Rev Hosp
Adventist Hlth Sys Ser D................... 5.375 11/15/35 1,003,300
4,550 Hillsborough Cnty, FL Sch Dist (AMBAC
Insd)...................................... 5.375 10/01/17 4,901,123
2,000 Jacksonville, FL Sales Tax Rev Better
Jacksonville (MBIA Insd)................... 5.250 10/01/19 2,129,080
1,000 Jea, FL Elec Sys Rev Ser 3 Ser A........... 5.500 10/01/41 1,024,420
2,000 Miami-Dade Cnty, FL Aviation Miami Intl
Arpt (FGIC Insd)........................... 5.375 10/01/27 2,045,840
2,000 Miami-Dade Cnty, FL Aviation Ser A (FSA
Insd) (AMT)................................ 5.125 10/01/35 1,986,920
2,000 Miami-Dade Cnty, FL Hlth Fac Miami Children
Hosp Ser A Rfdg (AMBAC Insd)............... 5.000 08/15/20 2,037,240
1,980 Miami-Dade, FL Sch Brd Ser C (FSA Insd).... 5.500 10/01/13 2,189,306
2,000 Palm Beach Cnty, FL Sch Brd Ctf Ser E Rfdg
(AMBAC Insd)............................... 5.250 08/01/11 2,210,900
1,655 Reedy Creek Impt Dist FL Ser A Rfdg (AMBAC
Insd)...................................... 5.500 06/01/11 1,856,116
3,465 Reedy Creek Impt Dist FL Ser C (AMBAC
Insd)...................................... 4.750 06/01/15 3,511,535
1,210 Saint Lucie Cnty, FL Sch Brd Ctf Ser A (FSA
Insd)...................................... 5.500 07/01/14 1,329,052
1,000 Tallahassee, FL Lease Rev FL St Univ Proj
Ser A (MBIA Insd).......................... 5.500 08/01/17 1,087,570
</Table>
8 See Notes to Financial Statements
VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
FLORIDA (CONTINUED)
$ 1,250 Tampa, FL Hosp Rev Cap Impt H Lee Moffitt
Ser A...................................... 5.750% 07/01/19 $ 1,303,862
2,880 Tampa, FL Occupational License Ser A Rfdg
(FGIC Insd)................................ 5.375 10/01/15 3,133,786
-------------
46,531,284
-------------
GEORGIA 2.9%
1,500 George L Smith II GA World Congress Cent
Auth Rev Domed Stadium Proj Rfdg (MBIA
Insd) (AMT)................................ 5.500 07/01/20 1,565,535
5,660 Georgia Muni Elec Auth Pwr Rev Ser Y (MBIA
Insd)...................................... 6.500 01/01/17 6,702,006
240 Georgia Muni Elec Auth Pwr Rev Ser Y
(Escrowed to Maturity) (MBIA Insd)......... 6.500 01/01/17 287,213
4,000 Municipal Elec Auth GA Combustion Turbine
Proj Ser A (MBIA Insd)..................... 5.250 11/01/16 4,278,520
-------------
12,833,274
-------------
HAWAII 0.3%
1,285 Honolulu, HI City & Cnty Ser B (FGIC
Insd)...................................... 5.500 10/01/11 1,440,472
-------------
ILLINOIS 16.5%
2,000 Bedford Park, IL Ser A Rfdg (FSA Insd)
(b)........................................ 5.250 12/15/20 2,115,940
2,000 Chicago, IL Brd of Ed (Prerefunded @
12/01/10) (FGIC Insd)...................... 5.500 12/01/31 2,258,120
2,000 Chicago, IL Brd of Ed Chicago Sch Reform
(Prerefunded @ 12/01/07) (AMBAC Insd)...... 5.750 12/01/20 2,266,700
4,865 Chicago, IL Cap Apprec (Prerefunded @
07/01/05) (AMBAC Insd)..................... * 07/01/16 2,380,444
1,500 Chicago, IL Lakefront Millennium Pk Facs
(MBIA Insd)................................ 5.125 01/01/28 1,511,100
7,000 Chicago, IL O'Hare Intl Arpt Rev Gen Arpt
Second Lien Ser A Rfdg (MBIA Insd)......... 6.375 01/01/12 7,344,400
1,500 Chicago, IL O'Hare Intl Arpt Rev Gen Arpt
Third Lien C-2 Rfdg (XLCA Insd) (AMT)...... 5.250 01/01/34 1,503,840
2,000 Chicago, IL O'Hare Intl Arpt Rev Second
Lien Passenger Fac B (AMBAC Insd).......... 5.500 01/01/17 2,153,420
3,500 Chicago, IL Proj Ser A Rfdg (MBIA Insd)
(c)........................................ 5.000 01/01/31 3,471,720
2,000 Chicago, IL Wastewtr Transmission Rev
Second Lien (MBIA Insd).................... 5.750 01/01/25 2,142,900
1,000 Chicago, IL Wastewtr Transmission Rev
Second Lien (Prerefunded @ 01/01/10) (MBIA
Insd)...................................... 6.000 01/01/30 1,152,710
2,870 Cook Cnty, IL Cap Impt Ser A (FGIC Insd)... 5.000 11/15/28 2,861,074
3,500 Du Page Cnty, IL Fst Presv Dist............ * 11/01/10 2,735,845
2,545 Du Page Cnty, IL Trans Rev (FSA Insd)...... 5.750 01/01/15 2,817,722
805 East Peoria, IL Ser C Rfdg................. 7.000 05/01/17 841,064
1,310 Elgin, IL Ser B Rfdg....................... 5.750 12/15/13 1,486,876
</Table>
See Notes to Financial Statements 9
VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
ILLINOIS (CONTINUED)
$ 1,600 Grundy, Kendall, & Will Cntys (AMBAC
Insd)...................................... 5.500% 05/01/15 $ 1,723,552
1,250 Illinois Dev Fin Auth Rev Bradley Univ Proj
(Prerefunded @ 08/01/09) (AMBAC Insd)...... 5.375 08/01/24 1,402,487
1,475 Illinois Dev Fin Auth Rev Loc Govt Pgm
Geneva Cmnty 304 B (FSA Insd).............. 5.750 01/01/15 1,635,731
1,145 Illinois Dev Fin Auth Rev Loc Govt Pgm
Geneva Cmnty 304 B (FSA Insd).............. 5.750 01/01/17 1,267,229
3,285 Illinois Dev Fin Auth Rev Presbyterian Home
Lake Proj Ser B (FSA Insd)................. 6.300 09/01/22 3,605,222
2,000 Illinois Ed Fac Auth Rev Lewis Univ........ 6.100 10/01/16 1,999,020
1,250 Illinois Hlth Fac Auth Rev Evangelical Hosp
Ser C (FSA Insd)........................... 6.750 04/15/17 1,498,987
700 Illinois Hlth Fac Auth Rev Highland Park
Hosp Proj Ser A (Prerefunded @ 10/01/07)
(MBIA Insd)................................ 5.750 10/01/17 790,048
2,000 Illinois Hlth Fac Auth Rev OSF Hlthcare Sys
Rfdg....................................... 6.000 11/15/10 2,051,580
2,275 Illinois Hlth Fac Auth Rev South Suburban
Hosp (Escrowed to Maturity)................ 7.000 02/15/18 2,778,776
1,000 Illinois St (FGIC Insd).................... 5.250 12/01/20 1,053,700
2,000 Illinois St First Ser (FGIC Insd).......... 5.375 11/01/14 2,181,060
2,000 Illinois St Sales Tax Rev Build Illinois... 5.000 06/15/19 2,068,160
1,000 Illinois St Sales Tax Rev Build Illinois... 5.000 06/15/23 1,012,230
250 Metropolitan Pier & Expo Auth IL Dedicated
St Tax Rev McCormick Pl Expn Proj (FGIC
Insd)...................................... 5.375 12/15/18 267,130
8,845 Metropolitan Pier & Expo Auth IL Dedicated
St Tax Rev McCormick Pl Expn Ser A (FGIC
Insd)...................................... * 06/15/16 4,923,746
3,000 Metropolitan Pier & Expo Auth IL Dedicated
St Tax Rev McCormick Pl Expn Ser A (MBIA
Insd)...................................... 5.250 06/15/42 3,046,530
1,005 Naperville, IL Ser A....................... 5.000 12/01/10 1,097,721
1,105 Saint Clair Cnty, IL Pub Bldg Comm Bldg Rev
Cap Apprec Ser B (FGIC Insd)............... * 12/01/15 637,806
1,000 Southern IL Univ Rev Cap Apprec Hsg & Aux
(MBIA Insd)................................ * 04/01/29 246,460
-------------
74,331,050
-------------
</Table>
10 See Notes to Financial Statements
VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
INDIANA 3.7%
$ 2,000 Indiana Transn Fin Auth Toll Rd Lease Rev
Rfdg (AMBAC Insd).......................... 5.375% 07/01/09 $ 2,166,520
4,500 Indianapolis, IN Arpt Auth Rev Spl Fac Fed
Express Corp Proj (AMT).................... 7.100 01/15/17 4,631,850
1,935 Logansport, IN Sch Bldg Corp First Mtg
(FGIC Insd)................................ 5.500 07/15/13 2,129,332
1,000 Marion Cnty, IN Convention & Rec Fac Auth
Excise Tax Rev (MBIA Insd)................. * 06/01/14 627,750
1,200 North Adams, IN Cmnty Schs Renovation Bldg
Corp Cap Apprec First Mtg (FSA Insd)....... * 07/15/15 704,388
1,280 North Adams, IN Cmnty Schs Renovation Bldg
Corp Cap Apprec First Mtg (FSA Insd)....... * 01/15/19 607,642
1,500 Petersburg, IN Pollutn Ctl Rev IN Pwr & Lt
(AMT)...................................... 5.950 12/01/29 1,507,530
1,605 Richland Beanblossom, IN Sch First Mtg
(Prerefunded @ 07/15/11) (FGIC Insd)....... 5.500 07/15/12 1,808,081
2,530 Vigo Cnty, IN Sch Bldg Corp First Mtg Impt
& Rfdg (FSA Insd).......................... 5.250 07/10/24 2,596,387
-------------
16,779,480
-------------
IOWA 0.9%
1,685 Des Moines, IA Pub Pkg Sys Ser A (FGIC
Insd)...................................... 5.750 06/01/15 1,876,888
1,785 Des Moines, IA Pub Pkg Sys Ser A (FGIC
Insd)...................................... 5.750 06/01/16 1,987,758
-------------
3,864,646
-------------
KANSAS 1.0%
1,975 Sedgwick Cnty, KS Uni Sch Dist No 259
Wichita (MBIA Insd)........................ 6.000 09/01/09 2,253,337
2,000 Wyandotte Cnty, KS Sch Dist 500 Rfdg (FSA
Insd)...................................... 5.000 09/01/19 2,090,640
-------------
4,343,977
-------------
KENTUCKY 1.8%
1,500 Kenton Cnty, KY Arpt Brd Rev Cincinnati/
Northn KY Intl Arpt Ser A Rfdg (AMT) (MBIA
Insd)...................................... 6.250 03/01/09 1,669,320
1,000 Kenton Cnty, KY Arpt Brd Rev Cincinnati/
Northn KY Intl Arpt Ser A Rfdg (AMT) (MBIA
Insd)...................................... 6.200 03/01/08 1,109,190
1,500 Kentucky St Ppty & Bldg Proj No 69 Ser A... 5.000 08/01/05 1,565,415
</Table>
See Notes to Financial Statements 11
VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
KENTUCKY (CONTINUED)
$ 1,000 Kentucky St Tpk Auth Econ Dev
Revitalization Proj Rfdg (FSA Insd)........ 5.625% 07/01/14 $ 1,108,560
2,450 Louisville & Jefferson Cnty, KY Swr Ser A
(MBIA Insd)................................ 5.500 05/15/16 2,669,593
-------------
8,122,078
-------------
MARYLAND 1.3%
1,250 Maryland St Hlth & Higher Ed Fac Auth Rev
Medstar Health Rfdg........................ 5.375 08/15/24 1,216,775
2,250 Maryland St Trans Auth Arpt Baltimore/Wash
Intl Arpt B (AMT) (AMBAC Insd)............. 5.125 03/01/24 2,274,097
2,350 Northeast, MD Waste Disp Auth Rfdg (AMT)
(AMBAC Insd)............................... 5.500 04/01/16 2,509,424
-------------
6,000,296
-------------
MASSACHUSETTS 3.4%
2,625 Massachusetts Muni Whsl Elec Co Pwr Supply
Sys Rev Ser A (Prerefunded @ 07/01/04)
(AMBAC Insd)............................... 5.000 07/01/14 2,694,379
5,000 Massachusetts St Cons Ln Ser E (Prerefunded
@ 01/01/13) (FSA Insd)..................... 5.250 01/01/20 5,471,050
1,500 Massachusetts St Fed Hwy Grant Antic Nt Ser
A.......................................... 5.750 06/15/14 1,700,715
500 Massachusetts St Hlth & Ed Fac Auth Rev
Hlthcare Sys Covenant Hlth................. 6.000 07/01/31 523,195
1,000 Massachusetts St Hlth & Ed Fac Auth Rev
Partn Hlthcare Sys Ser C................... 5.750 07/01/32 1,046,650
1,000 Massachusetts St Indl Fin Agy Rev Wentworth
Institute Tech............................. 5.650 10/01/18 1,033,610
2,805 Massachusetts St Port Auth Rev Ser A (MBIA
Insd)...................................... 5.000 07/01/22 2,859,585
-------------
15,329,184
-------------
</Table>
12 See Notes to Financial Statements
VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
MICHIGAN 5.7%
$ 3,015 Detroit, MI Downtown Dev Auth Tax Increment
Rev Ser C1................................. * 07/01/17 $ 1,488,897
3,050 Detroit, MI Downtown Dev Auth Tax Increment
Rev Ser C1................................. * 07/01/18 1,413,888
3,050 Detroit, MI Downtown Dev Auth Tax Increment
Rev Ser C1................................. * 07/01/19 1,327,421
3,050 Detroit, MI Downtown Dev Auth Tax Increment
Rev Ser C1................................. * 07/01/22 1,073,600
3,050 Detroit, MI Downtown Dev Auth Tax Increment
Rev Ser C1................................. * 07/01/23 996,801
3,050 Detroit, MI Downtown Dev Auth Tax Increment
Rev Ser C1................................. * 07/01/24 923,875
2,965 Detroit, MI Wtr Supply Sys Ser C (MBIA
Insd)...................................... 5.250% 07/01/20 3,124,695
3,500 Grand Rapids, MI Downtown Dev Cap Apprec
(MBIA Insd)................................ * 06/01/15 2,091,215
2,765 Grand Rapids, MI Downtown Dev Cap Apprec
(MBIA Insd)................................ * 06/01/16 1,562,253
1,000 Grand Rapids, MI Wtr Supply Sys Rfdg (FGIC
Insd)...................................... 5.750 01/01/13 1,115,120
1,400 Hillsdale, MI Hosp Fin Auth Hosp Rev
Hillsdale Cmnty Hlth Cent.................. 5.250 05/15/26 1,228,948
2,000 Michigan Muni Bd Auth Rev Clean Wtr Rev
Fd......................................... 5.250 10/01/18 2,119,180
2,850 Michigan St Hosp Fin Auth Rev Ascension
Hlth Cr Ser A (Prerefunded @ 11/15/09)
(MBIA Insd)................................ 5.750 11/15/18 3,258,975
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 Strategic Fd Detroit Edison Co
Proj Ser A (XLCA Insd) (AMT)............... 5.500 06/01/30 2,577,825
-------------
25,834,358
-------------
</Table>
See Notes to Financial Statements 13
VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
MINNESOTA 1.8%
$ 5,000 Minneapolis & Saint Paul, MN Metro Arpts
Comm Arpt Rev Ser A (FGIC Insd)............ 5.125% 01/01/31 $ 5,051,100
2,800 Minnesota Agriculture & Econ Dev Brd Rev
Hlthcare Sys Fairview Hosp Ser A (MBIA
Insd)...................................... 5.750 11/15/26 2,974,076
-------------
8,025,176
-------------
MISSISSIPPI 1.4%
3,000 Medical Cent Ed Bldg Corp MS Rev Univ MS
Med Cent Proj (Prerefunded @ 12/01/04)
(MBIA Insd)................................ 5.900 12/01/23 3,141,690
3,250 Mississippi Business Fin Corp MS Pollutn
Ctl Rev Sys Energy Res Inc Proj............ 5.875 04/01/22 3,266,217
-------------
6,407,907
-------------
MISSOURI 1.3%
1,500 Cape Girardeau Cnty, MO Indl Dev Auth
Hlthcare Fac Rev Southeast MO Hosp Assoc... 5.625 06/01/27 1,516,410
1,625 Jefferson Cnty, MO Reorg Sch Dist No R-6
(FGIC Insd)................................ 5.625 03/01/20 1,820,244
1,500 Kansas City, MO Met Cmnty Impt Leasehold Jr
College Rfdg (FGIC Insd)................... 5.500 07/01/17 1,632,525
1,000 Missouri St Hwys & Trans Ser A............. 5.125 02/01/17 1,055,660
-------------
6,024,839
-------------
NEBRASKA 0.8%
1,190 Dodge Cnty, NE Sch Dist No 001 Fremont (FSA
Insd)...................................... 5.750 12/15/13 1,335,382
2,260 University NE Univ Rev Lincoln Student Fees
& Fac Ser B................................ 5.000 07/01/23 2,284,770
-------------
3,620,152
-------------
NEVADA 0.3%
1,500 Reno, NV Sr Lien Retrac Reno Trans Proj
(AMBAC Insd)............................... 5.125 06/01/32 1,507,725
-------------
NEW HAMPSHIRE 0.5%
1,000 New Hampshire Hlth & Ed Fac Auth Rev
Derryfield Sch............................. 7.000 07/01/30 996,890
1,000 New Hampshire St Bus Fin Auth Wtr Fac Rev
Pennichuck Wtrwks Inc (AMBAC Insd) (AMT)... 6.300 05/01/22 1,105,870
-------------
2,102,760
-------------
</Table>
14 See Notes to Financial Statements
VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
NEW JERSEY 11.9%
$ 5,650 Garden St Preservation Tr NJ Ser A (FSA
Insd)...................................... 5.250% 11/01/19 $ 6,026,459
1,500 New Jersey Econ Dev Auth Rev Trans Proj
Sublease Ser A (Prerefunded @ 05/01/09)
(FSA Insd)................................. 5.250 05/01/17 1,657,830
25,000 New Jersey Econ Dev Auth St Contract Econ
Recovery (MBIA Insd)....................... 5.900 03/15/21 28,698,000
2,000 New Jersey Hlthcare Fac Fin Auth Rev Gen
Hosp Ctr Passaic (Escrowed to Maturity)
(FSA Insd)................................. 6.000 07/01/06 2,135,060
3,000 New Jersey St Ed Fac Auth Higher Ed Cap
Impt Ser A (AMBAC Insd).................... 5.250 09/01/19 3,175,080
710 New Jersey St Tpk Auth Tpk Rev Ser A (MBIA
Insd)...................................... 6.000 01/01/11 813,589
290 New Jersey St Tpk Auth Tpk Rev Ser A
(Escrowed to Maturity) (MBIA Insd)......... 6.000 01/01/11 333,613
3,500 New Jersey St Trans Corp Ctfs Fed Trans
Admin Grants Ser A (AMBAC Insd)............ 5.500 09/15/13 3,898,230
2,385 New Jersey St Trans Corp Ctfs Fed Trans
Admin Grants Ser A (Prerefunded @ 09/15/09)
(AMBAC Insd)............................... 5.750 09/15/11 2,702,420
4,000 New Jersey St Trans Tr Fd Auth Trans Sys
Ser C (FSA Insd)........................... 5.500 06/15/20 4,329,120
-------------
53,769,401
-------------
NEW MEXICO 0.3%
1,250 Jicarilla, NM Apache Nation Rev Ser A
(Acquired 10/23/2003, Cost $1,274,958)..... 5.500 09/01/23 1,277,088
-------------
NEW YORK 23.4%
3,000 Metropolitan Trans Auth NY Commuter Fac Rev
Ser A (Prerefunded @ 01/01/08) (MBIA
Insd)...................................... 5.625 07/01/27 3,358,140
2,000 Metropolitan Trans Auth NY Trans Fac Rev
Svc Contract Ser R (Prerefunded @
07/01/15).................................. 5.500 07/01/17 2,259,320
2,000 Nassau Cnty, NY Interim Fin Auth Sales Tax
Secured Ser A (Prerefunded @ 11/15/10)..... 5.750 11/15/13 2,282,360
2,500 New York City Ser A Rfdg................... 7.000 08/01/05 2,661,775
3,000 New York City Ser A Rfdg................... 7.000 08/01/06 3,310,830
1,850 New York City Ser G........................ 5.875 10/15/14 2,019,645
1,000 New York City Ser H........................ 5.750 03/15/13 1,091,490
5,000 New York City Ser I........................ 6.000 04/15/12 5,460,900
2,500 New York City Ser I (MBIA Insd)............ 5.000 08/01/17 2,629,925
10,000 New York City Trans Auth Trans Fac
Livingston Plaza Proj Rfdg (Escrowed to
Maturity) (FSA Insd)....................... 5.400 01/01/18 11,039,000
</Table>
See Notes to Financial Statements 15
VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
$ 3,000 New York City Transitional Fin Auth Rev
Future Tax Secd Ser A Rfdg (d)............. 5.500/14.000% 11/01/26 $ 3,315,720
5,305 New York City Transitional Future Tax Secd
Ser C (AMBAC Insd)......................... 5.250 08/01/20 5,604,467
2,000 New York City Transitional Future Tax Secd
Ser C (AMBAC Insd)......................... 5.250 08/01/22 2,095,980
4,545 New York City Transitional Future Tax Secd
Ser D (MBIA Insd).......................... 5.250 02/01/21 4,800,838
2,500 New York St Dorm Auth Lease Rev Muni Hlth
Fac Impt Pgm Ser A (FSA Insd).............. 5.500 05/15/25 2,590,950
1,250 New York St Dorm Auth Lease Rev St Univ
Dorm Fac Ser C (Prerefunded @ 07/01/09)
(MBIA Insd)................................ 5.500 07/01/29 1,410,238
13,500 New York St Dorm Auth Rev City Univ Sys Ser
C.......................................... 7.500 07/01/10 15,628,005
3,000 New York St Dorm Auth Rev St Univ Ed Fac
(Prerefunded @ 05/15/10) (FGIC Insd)....... 5.750 05/15/24 3,435,000
2,000 New York St Dorm Auth Rev St Univ Ed Fac
1989 Res (MBIA Insd)....................... 6.000 05/15/16 2,274,860
1,980 New York St Dorm Auth Rev St Univ Ed Fac
Ser B...................................... 5.250 05/15/10 2,173,189
1,500 New York St Environmental Fac Revolving Fds
Ser C...................................... 5.000 07/15/21 1,546,230
1,550 New York St Hsg Fin Agy St Economic Dev &
Hsg Ser A.................................. 5.000 09/15/23 1,547,055
2,840 New York St Loc Govt Assistance Corp Ser E
Rfdg....................................... 6.000 04/01/14 3,264,807
3,000 New York St Med Care Fac Fin Agy Rev NY
Hosp Mtg Ser A (Prerefunded @ 02/15/05)
(AMBAC Insd)............................... 6.750 08/15/14 3,187,530
5,875 New York St Med Care Fac Fin Agy Rev Saint
Peter's Hosp Proj Ser A (AMBAC Insd)....... 5.375 11/01/20 6,004,603
1,500 New York St Urban Dev Corp Rev Proj Cent
for Indl Innovation Rfdg................... 5.500 01/01/13 1,657,020
3,000 Port Auth NY & NJ Spl Oblig Rev Spl Proj
JFK Intl Arpt Terminal 6 (AMT) (MBIA
Insd)...................................... 5.750 12/01/22 3,219,330
3,000 Port Auth NY & NJ Spl Oblig Rev Spl Proj
JFK Intl Arpt Terminal 6 (AMT) (MBIA
Insd)...................................... 5.750 12/01/25 3,146,580
2,150 Triborough Brdg & Tunl Auth Gen Purp Ser
A.......................................... 5.000 01/01/27 2,150,538
-------------
105,166,325
-------------
</Table>
16 See Notes to Financial Statements
VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
NORTH CAROLINA 5.1%
$ 2,000 Johnston Cnty, NC (FGIC Insd).............. 5.900% 03/01/19 $ 2,263,280
1,000 North Carolina Eastern Muni Pwr Agy Pwr Sys
Rev Ser D.................................. 6.750 01/01/26 1,097,350
15,000 North Carolina Muni Pwr Agy No 1 Catawba
Elec Rev Rfdg (MBIA Insd).................. 6.000 01/01/12 17,139,300
2,500 North Carolina Muni Pwr Agy Ser A (MBIA
Insd)...................................... 5.250 01/01/19 2,637,800
-------------
23,137,730
-------------
NORTH DAKOTA 0.3%
1,390 North Dakota St Hsg Fin Agy Rev Hsg Fin Pgm
Home Mtg Fin Ser B (MBIA Insd) (AMT)....... 5.500 07/01/29 1,410,197
-------------
OHIO 2.1%
1,400 Bowling Green St Univ OH Gen Rcpt (FGIC
Insd)...................................... 5.750 06/01/12 1,565,704
1,000 Cuyahoga Cnty, OH Hosp Fac Rev Canton Inc
Proj....................................... 7.500 01/01/30 1,101,400
1,000 Delaware Cnty, OH Cap Fac.................. 6.000 12/01/25 1,104,180
1,000 Hamilton, OH One Renaissance Ctr Ser A
(AMBAC Insd)............................... 5.500 11/01/16 1,093,150
1,000 Mahoning Cnty, OH Hosp Fac Forum Hlth Oblig
Group Ser A................................ 6.000 11/15/32 1,041,680
1,000 Ohio St Air Quality Dev Auth Rev JMG Fdg
Ltd Part Proj Rfdg (AMT) (AMBAC Insd)...... 6.375 04/01/29 1,036,640
1,840 Pickerington, OH Loc Sch Dist Cap Apprec
Sch Fac Contr (FGIC Insd).................. * 12/01/12 1,285,038
1,000 University Cincinnati OH Gen Ser A (FGIC
Insd)...................................... 5.500 06/01/09 1,116,190
-------------
9,343,982
-------------
OKLAHOMA 1.9%
1,500 Jenks, OK Aquarium Auth Rev First Mtg
(Prerefunded @ 07/01/10) (MBIA Insd)....... 6.100 07/01/30 1,746,255
1,575 Oklahoma City, OK Arpt Tr Jr Lien 27th Ser
B (FSA Insd) (AMT)......................... 5.750 07/01/16 1,695,299
2,500 Pottawatomie Cnty, OK Dev Auth North Dear
Creek Reservoir Proj (AMBAC Insd).......... 5.000 07/01/23 2,537,500
2,250 Tulsa Cnty, OK Pub Fac Auth Cap Impt Rev
(AMBAC Insd)............................... 6.250 11/01/22 2,589,300
-------------
8,568,354
-------------
</Table>
See Notes to Financial Statements 17
VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
OREGON 2.9%
$ 4,000 Oregon Hlth Sciences Univ Insd Ser A (MBIA
Insd)...................................... 5.250% 07/01/22 $ 4,173,720
3,000 Oregon St Dept Admin Ser C Rfdg (MBIA
Insd)...................................... 5.250 11/01/17 3,189,360
1,290 Oregon St Veterans Welfare Ser 76A......... 6.050 10/01/28 1,332,867
1,190 Portland, OR Cmnty College Dist Ser B...... 5.250 06/01/12 1,291,198
1,985 Portland, OR Urban Renewal & Redev Downtown
Wtrfront Ser A (AMBAC Insd)................ 5.750 06/15/16 2,211,211
1,000 Washington Multnomah & Yamhill (MBIA
Insd)...................................... 5.000 06/01/13 1,065,270
-------------
13,263,626
-------------
PENNSYLVANIA 4.4%
1,250 Allegheny Cnty, PA Ctf Part (AMBAC Insd)... 5.000 12/01/28 1,252,450
1,250 Allegheny Cnty, PA San Auth Swr Rev (MBIA
Insd)...................................... 5.750 12/01/16 1,396,613
4,680 Erie, PA Sch Dist Cap Apprec Rfdg (FSA
Insd)...................................... * 09/01/19 2,187,853
3,650 Falls Twp, PA Hosp Auth Hosp Rev DE Vly Med
Rfdg (FHA Gtd)............................. 7.000 08/01/22 3,836,150
1,905 Harrisburg, PA Cap Apprec Ser D Rfdg (AMBAC
Insd)...................................... * 09/15/16 1,066,381
1,710 Harrisburg, PA Cap Apprec Ser D Rfdg (AMBAC
Insd)...................................... * 03/15/19 820,270
1,385 Harrisburg, PA Cap Apprec Ser F Rfdg (AMBAC
Insd)...................................... * 09/15/19 648,166
2,000 Harrisburg, PA Res Gtd Sub Ser D 2 (FSA
Insd)...................................... 5.000 12/01/33 2,124,480
1,500 Penn Cambria Sch Dist PA Cap Apprec (FGIC
Insd)...................................... * 08/15/20 659,295
60 Penn Hills, PA (Prerefunded @ 12/01/07)
(FGIC Insd)................................ 5.900 12/01/17 67,206
1,000 Pennsylvania St Higher Ed Fac Auth College
& Univ Rev Bryn Mawr College (MBIA Insd)... 5.625 12/01/27 1,056,510
1,000 Philadelphia, PA Auth Indl Dev Philadelphia
Arpt Sys Proj Ser A (FGIC Insd) (AMT)...... 5.125 07/01/19 1,021,890
1,400 Philadelphia, PA Sch Dist Ser A (FSA
Insd)...................................... 5.750 02/01/12 1,559,754
1,500 Pittsburgh, PA Ser A (Prerefunded @
09/01/09) (FGIC Insd)...................... 5.750 09/01/23 1,687,845
1,005 Southeast Delco Sch Dist PA Cap Apprec
(MBIA Insd)................................ * 02/01/17 545,454
-------------
19,930,317
-------------
</Table>
18 See Notes to Financial Statements
VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
RHODE ISLAND 0.4%
$ 1,490 Providence, RI Redev Agy Rev Pub Safety &
Muni Bldgs Ser A (AMBAC Insd).............. 5.500% 04/01/14 $ 1,633,532
-------------
SOUTH CAROLINA 3.9%
2,275 Beaufort Cnty, SC Tax Increment New River
Redev Proj Area (MBIA Insd)................ 5.500 06/01/19 2,463,074
2,375 Berkeley Cnty, SC Sch Dist Ctfs Part
Berkeley Sch Facs Grp Inc (Escrowed to
Maturity) (MBIA Insd)...................... 5.250 02/01/16 2,538,186
2,700 Charleston Cnty, SC Solid Waste
(Prerefunded @ 01/01/05) (MBIA Insd)....... 6.000 01/01/14 2,838,456
3,750 South Carolina Jobs Econ Dev Auth Indl Rev
Elec & Gas Co Proj Ser B (AMBAC Insd)
(AMT)...................................... 5.450 11/01/32 3,847,163
3,500 South Carolina Jobs Econ Elec & Gas Co Proj
Ser A (AMBAC Insd)......................... 5.200 11/01/27 3,576,440
2,000 South Carolina St Pub Svc Auth Rev Ser D
Rfdg (FSA Insd)............................ 5.000 01/01/20 2,061,580
-------------
17,324,899
-------------
SOUTH DAKOTA 0.8%
1,375 Deadwood, SD Ctf Part (ACA Insd)........... 6.375 11/01/20 1,464,636
1,000 South Dakota St Hlth & Ed Fac Auth Rev
Childrens Care Hosp Rfdg................... 6.125 11/01/29 1,045,700
995 South Dakota St Hlth & Ed Fac Auth
Vocational Ed Pgm Ser A (AMBAC Insd)....... 5.400 08/01/13 1,087,097
-------------
3,597,433
-------------
TENNESSEE 2.0%
1,500 Johnson City, TN Hlth & Ed Fac Brd Hosp Rev
First Mtg Mtn States Rfdg (MBIA Insd)...... 7.500 07/01/25 1,849,965
1,000 Memphis, TN Gen Impt....................... 5.000 05/01/20 1,034,060
410 Montgomery Cnty, TN Pub Impt Rfdg (FGIC
Insd)...................................... 5.500 05/01/16 446,695
5,090 Montgomery Cnty, TN Pub Impt Rfdg
(Prerefunded @ 05/01/12) (FGIC Insd)....... 5.500 05/01/16 5,715,154
-------------
9,045,874
-------------
TEXAS 11.3%
2,685 Beaumont, TX Wtrwks & Swr Sys (FGIC Insd).. 6.250 09/01/15 3,082,622
1,275 Cameron Cnty, TX Ctf Oblig (AMBAC Insd).... 5.750 02/15/13 1,415,888
3,000 Dallas Cnty, TX Util & Reclamation Dist Ser
B Rfdg (AMBAC Insd)........................ 5.875 02/15/29 3,078,930
2,000 Dallas, TX Wtrwks & Swr Sys Rev Rfdg....... 5.750 10/01/17 2,215,920
</Table>
See Notes to Financial Statements 19
VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
TEXAS (CONTINUED)
$ 4,000 Dallas-Fort Worth, TX Intl Arpt Rev Impt Jt
Ser A Rfdg (FGIC Insd) (AMT)............... 5.500% 11/01/31 $ 4,097,440
4,000 Dallas-Fort Worth, TX Intl Arpt Rev Jt Ser
A (FGIC Insd) (AMT)........................ 5.750 11/01/30 4,131,120
6,000 Harris Cnty, TX Flood Ctl Dist Contract B
Rfdg....................................... 5.000 10/01/23 6,069,420
1,000 Houston, TX Arpt Sys Rev Sub Lien Ser A
(FSA Insd) (AMT)........................... 5.625 07/01/30 1,022,420
3,000 Houston, TX Hotel Occupancy Tax & Spl Rev
Convention & Entmt Ser B (AMBAC Insd)...... 5.750 09/01/15 3,336,810
1,500 Houston, TX Pub Impt Rfdg (FSA Insd)....... 5.750 03/01/15 1,663,785
1,925 Houston, TX Wtr & Swr Sys Rev Jr Lien Ser C
(FGIC Insd)................................ 5.375 12/01/27 1,974,723
1,500 Metropolitan Hlth Fac Dev Corp TX Wilson N
Jones Mem Hosp Proj........................ 7.250 01/01/31 1,415,415
1,500 North Cent TX Hlth Fac Dev Hosp Baylor
Hlthcare Sys Proj Ser A.................... 5.125 05/15/29 1,472,985
4,000 North Cent TX Hlth Fac Dev Hosp Childrens
Med Ctr Dallas (AMBAC Insd)................ 5.250 08/15/32 4,065,240
3,000 San Antonio, TX Elec & Gas Sys Rfdg........ 5.375 02/01/16 3,227,310
2,750 Texas St Vets Housing Assistance Pgm Vet
Ser B (FHA Gtd) (AMT)...................... 6.100 06/01/31 2,900,920
3,000 University of TX Univ Rev Fin Sys Ser A.... 5.250 08/15/20 3,172,620
2,300 University of TX Univ Rev Fin Sys Ser C
(Prerefunded @ 08/15/11)................... 5.375 08/15/19 2,560,429
-------------
50,903,997
-------------
UTAH 1.9%
140 Utah St Hsg Fin Agy Single Family Mtg
Mezzanine Issue H1 (AMBAC Insd)............ 6.000 07/01/12 145,930
3,625 Utah St Ser A.............................. 5.000 07/01/07 3,921,815
4,000 Utah St Ser B Rfdg......................... 5.250 07/01/08 4,407,000
-------------
8,474,745
-------------
VIRGINIA 0.5%
1,320 Fairfax Cnty, VA Ctf Part.................. 5.300 04/15/23 1,360,867
1,000 Henrico Cnty, VA Indl Dev Auth Pub Fac
Lease Rev Henrico Cnty Regl Jail Proj
(Prerefunded @ 08/01/05)................... 7.125 08/01/21 1,089,920
-------------
2,450,787
-------------
</Table>
20 See Notes to Financial Statements
VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
WASHINGTON 6.4%
$ 3,245 Clark Cnty, WA Sch Dist 114 Evergreen (FSA
Insd)...................................... 5.500% 12/01/15 $ 3,539,711
2,500 Energy Northwest WA Elec Rev Proj No 3 Ser
A Rfdg (FSA Insd).......................... 5.500 07/01/18 2,696,050
5,360 Energy Northwest WA Elec Rev Proj No 3 Ser
B Rfdg (FSA Insd).......................... 6.000 07/01/16 6,039,594
1,485 Pierce Cnty, WA (AMBAC Insd)............... 5.750 08/01/14 1,662,339
1,000 Port Seattle, WA Rev Ser B (MBIA Insd)
(AMT)...................................... 5.625 02/01/24 1,031,820
1,435 Radford Ct Pptys WA Student Hsg Rev (MBIA
Insd)...................................... 6.000 06/01/15 1,624,233
1,585 Radford Ct Pptys WA Student Hsg Rev (MBIA
Insd)...................................... 6.000 06/01/16 1,797,073
1,150 Seattle, WA Muni Lt & Pwr Rev.............. 5.250 12/01/08 1,261,148
1,315 Seattle, WA Muni Lt & Pwr Rev.............. 5.500 12/01/09 1,458,690
1,000 Seattle, WA Muni Lt & Pwr Rev.............. 5.625 12/01/18 1,066,690
3,000 Spokane, WA Pub Fac Dist Hotel Motel &
Sales Use Tax (MBIA Insd).................. 5.250 09/01/33 3,069,060
1,350 Tacoma, WA Elec Sys Rev Ser A Rfdg (FSA
Insd)...................................... 5.750 01/01/15 1,494,545
1,650 Tacoma, WA Elec Sys Rev Ser B Rfdg (FSA
Insd)...................................... 5.500 01/01/12 1,835,592
-------------
28,576,545
-------------
WISCONSIN 1.1%
1,225 De Pere, WI Unit Sch Dist Rfdg (FGIC
Insd)...................................... 5.000 10/01/13 1,296,479
1,340 Oconto Falls, WI Pub Sch Dist Ser A Rfdg
(Prerefunded @ 03/01/11) (FSA Insd)........ 5.750 03/01/15 1,524,625
2,000 Southeast WI Professional Baseball Pk Dist
Sales Tax Rev Ser A Rfdg (MBIA Insd)....... 5.500 12/15/20 2,223,540
-------------
5,044,644
-------------
</Table>
See Notes to Financial Statements 21
VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
GUAM 0.7%
$ 3,000 Guam Pwr Auth Rev Ser A (AMBAC Insd)....... 5.250% 10/01/34 $ 3,067,710
-------------
PUERTO RICO 0.3%
1,110 Puerto Rico Comwlth Aqueduct & Swr Auth Rev
Rfdg....................................... 5.000 07/01/15 1,136,540
-------------
TOTAL LONG-TERM INVESTMENTS 156.9%
(Cost $658,074,034).......................................................... 706,377,571
SHORT-TERM INVESTMENTS 0.2%
(Cost $1,030,000)............................................................ 1,030,000
-------------
TOTAL INVESTMENTS 157.1%
(Cost $659,104,034).......................................................... 707,407,571
OTHER ASSETS IN EXCESS OF LIABILITIES 1.8%.................................... 7,889,586
PREFERRED SHARES (INCLUDING ACCRUED DISTRIBUTIONS) (58.9%).................... (265,065,749)
-------------
NET ASSETS APPLICABLE TO COMMON SHARES 100.0%................................. $ 450,231,408
=============
</Table>
* Zero coupon bond
(a) Security includes a put feature allowing the trust to periodically put the
security back to the issuer at amortized cost on specified put dates. The
interest rate shown represents the current interest rate earned by the Trust
based on the most recent reset date.
(b) Securities purchased on a when-issued or delayed delivery basis.
(c) All or a portion of these securities have been physically segregated in
connection with open futures contracts.
(d) Security is a "step-up" bond where the coupon increases or steps up at a
predetermined date.
ACA--American Capital Access
AMBAC--AMBAC Indemnity Corp.
AMT--Alternative Minimum Tax
FGIC--Financial Guaranty Insurance Co.
FHA--Federal Housing Administration
FSA--Financial Security Assurance Inc.
MBIA--Municipal Bond Investors Assurance Corp.
XLCA--XL Capital Assurance Inc.
22 See Notes to Financial Statements
VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
April 30, 2004 (Unaudited)
<Table>
ASSETS:
Total Investments (Cost $659,104,034)....................... $707,407,571
Cash........................................................ 357,060
Receivables:
Interest.................................................. 10,586,745
Investments Sold.......................................... 1,795,625
Other....................................................... 2,271
------------
Total Assets............................................ 720,149,272
------------
LIABILITIES:
Payables:
Investments Purchased..................................... 3,809,523
Investment Advisory Fee................................... 356,249
Variation Margin on Futures............................... 116,469
Income Distributions--Common Shares....................... 111,530
Administrative Fee........................................ 29,687
Other Affiliates.......................................... 26,121
Trustees' Deferred Compensation and Retirement Plans........ 300,308
Accrued Expenses............................................ 102,228
------------
Total Liabilities....................................... 4,852,115
Preferred Shares (including accrued distributions).......... 265,065,749
------------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $450,231,408
============
NET ASSET VALUE PER COMMON SHARE ($450,231,408 divided by
27,013,149 shares outstanding)............................ $ 16.67
============
NET ASSETS CONSIST OF:
Common Shares ($.01 par value with an unlimited number of
shares authorized, 27,013,149 shares issued and
outstanding).............................................. $ 270,131
Paid in Surplus............................................. 399,277,851
Net Unrealized Appreciation................................. 49,324,965
Accumulated Undistributed Net Investment Income............. 3,043,602
Accumulated Net Realized Loss............................... (1,685,141)
------------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $450,231,408
============
PREFERRED SHARES ($.01 par value, authorized 100,000,000
shares, 10,600 issued with liquidation preference of
$25,000 per share)........................................ $265,000,000
============
NET ASSETS INCLUDING PREFERRED SHARES....................... $715,231,408
============
</Table>
See Notes to Financial Statements 23
VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS
FINANCIAL STATEMENTS continued
Statement of Operations
For the Six Months Ended April 30, 2004 (Unaudited)
<Table>
INVESTMENT INCOME:
Interest.................................................... $ 17,837,036
------------
EXPENSES:
Investment Advisory Fee..................................... 2,194,069
Preferred Share Maintenance................................. 353,186
Administrative Fee.......................................... 182,839
Trustees' Fees and Related Expenses......................... 81,453
Legal....................................................... 34,152
Custody..................................................... 21,449
Other....................................................... 162,317
------------
Total Expenses.......................................... 3,029,465
------------
NET INVESTMENT INCOME....................................... $ 14,807,571
============
REALIZED AND UNREALIZED GAIN/LOSS:
Realized Gain/Loss:
Investments............................................... $ 480,454
Futures................................................... (4,231,163)
------------
Net Realized Loss........................................... (3,750,709)
------------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 55,619,347
------------
End of the Period:
Investments............................................. 48,303,537
Futures................................................. 1,021,428
------------
49,324,965
------------
Net Unrealized Depreciation During the Period............... (6,294,382)
------------
NET REALIZED AND UNREALIZED LOSS............................ $(10,045,091)
============
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS..................... $ (1,338,546)
============
NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM
OPERATIONS................................................ $ 3,423,934
============
</Table>
24 See Notes to Financial Statements
VAN KAMPEN TRUST FOR INVESTMENT GRADE 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................................... $ 14,807,571 $ 29,908,581
Net Realized Gain/Loss.................................. (3,750,709) 5,112,551
Net Unrealized Depreciation During the Period........... (6,294,382) (2,721,390)
Distributions to Preferred Shareholders:
Net Investment Income................................. (1,113,675) (2,221,342)
Net Realized Gain..................................... (224,871) (786,321)
------------ ------------
Change in Net Assets Applicable to Common Shares from
Operations............................................ 3,423,934 29,292,079
Distributions to Common Shareholders:
Net Investment Income................................. (13,708,544) (28,875,489)
Net Realized Gain..................................... (2,814,615) (8,705,889)
------------ ------------
NET CHANGE IN NET ASSETS APPLICABLE TO COMMON SHARES
FROM INVESTMENT ACTIVITIES............................ (13,099,225) (8,289,299)
NET ASSETS APPLICABLE TO COMMON SHARES:
Beginning of the Period................................. 463,330,633 471,619,932
------------ ------------
End of the Period (Including accumulated undistributed
net investment income of $3,043,602 and $3,058,250,
respectively)......................................... $450,231,408 $463,330,633
============ ============
</Table>
See Notes to Financial Statements 25
VAN KAMPEN TRUST FOR INVESTMENT GRADE 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.................. $ 17.15 $ 17.46 $ 17.51
------- ------- -------
Net Investment Income................................... .55 1.10 1.18
Net Realized and Unrealized Gain/Loss................... (.37) .09 .18
Common Share Equivalent of Distributions Paid to
Preferred Shareholders:
Net Investment Income................................. (.04) (.08) (.10)
Net Realized Gain..................................... (.01) (.03) (.07)
------- ------- -------
Total from Investment Operations.......................... .13 1.08 1.19
Distributions Paid to Common Shareholders:
Net Investment Income................................. (.51) (1.07) (1.03)
Net Realized Gain..................................... (.10) (.32) (.21)
------- ------- -------
NET ASSET VALUE, END OF THE PERIOD........................ $ 16.67 $ 17.15 $ 17.46
======= ======= =======
Common Share Market Price at End of the Period............ $ 14.42 $ 15.58 $ 15.80
Total Return (b).......................................... -3.80%* 7.60% 14.56%
Net Assets Applicable to Common Shares at End of the
Period (In millions).................................... $ 450.2 $ 463.3 $ 471.6
Ratio of Expenses to Average Net Assets Applicable to
Common Shares (c)....................................... 1.30% 1.28% 1.41%
Ratio of Net Investment Income to Average Net Assets
Applicable to Common Shares (c)......................... 6.33% 6.40% 6.89%
Portfolio Turnover........................................ 6%* 23% 33%
SUPPLEMENTAL RATIOS:
Ratio of Expenses to Average Net Assets Including
Preferred Shares (c).................................... .83% .82% .89%
Ratio of Net Investment Income to Average Net Assets
Applicable to Common Shares (d)......................... 5.85% 5.92% 6.30%
SENIOR SECURITIES:
Total Preferred Shares Outstanding........................ 10,600 10,600 10,600
Asset Coverage Per Preferred Share (e).................... $67,481 $68,721 $69,511
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 by .02%. 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.
26
<Table>
<Caption>
YEAR ENDED OCTOBER 31,
- -----------------------------------------------------------------------------------------
2001 2000 1999 1998 1997 1996 1995 1994
- -----------------------------------------------------------------------------------------
$ 16.22 $ 15.63 $ 17.64 $ 17.29 $ 16.58 $ 16.58 $ 15.03 $ 17.95
------- -------- -------- -------- -------- -------- -------- --------
1.25 1.32 1.33 1.35 1.37 1.38 1.42 1.43
1.24 .64 (1.94) .42 .74 .11 1.65 (2.84)
(.32) (.40) (.32) (.34) (.35) (.35) (.38) (.30)
-0- -0- (.02) (.02) -0- -0- -0- (.01)
------- -------- -------- -------- -------- -------- -------- --------
2.17 1.56 (.95) 1.41 1.76 1.14 2.69 (1.72)
(.88) (.97) (.99) (1.00) (1.05) (1.14) (1.14) (1.14)
-0- -0- (.07) (.06) -0- -0- -0- (.06)
------- -------- -------- -------- -------- -------- -------- --------
$ 17.51 $ 16.22 $ 15.63 $ 17.64 $ 17.29 $ 16.58 $ 16.58 $ 15.03
======= ======== ======== ======== ======== ======== ======== ========
$ 14.94 $13.5625 $13.6875 $ 17.00 $ 16.125 $ 15.813 $ 15.75 $ 14.00
16.85% 6.41% -13.97% 12.40% 8.92% 7.84% 21.15% -13.12%
$ 473.0 $ 438.1 $ 422.2 $ 476.6 $ 467.0 $ 447.8 $ 447.9 $ 406.1
1.55% 1.68% 1.61% 1.58% 1.60% 1.62% 1.68% 1.63%
7.37% 8.44% 7.87% 7.73% 8.16% 8.37% 8.96% 8.63%
29% 31% 33% 29% 40% 30% 15% 20%
.98% 1.03% 1.02% 1.01% 1.01% 1.02% 1.04% 1.03%
5.49% 5.86% 6.00% 5.80% 6.06% 6.24% 6.55% 6.79%
10,600 10,600 10,600 5,300 5,300 5,300 5,300 5,300
$69,623 $ 66,332 $ 64,827 $139,932 $138,116 $134,491 $134,501 $126,614
$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 27
VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2004 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen Trust for Investment Grade 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 income tax, consistent with
preservation of capital. The Trust will invest substantially all of its assets
in municipal securities rated investment grade at the time of investment. The
Trust commenced investment operations on January 24, 1992. Effective November
30, 2003, the Trust's investment adviser, Van Kampen Investment Advisory Corp.
merged into its affiliate, Van Kampen Asset Management.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
A. SECURITY VALUATION Municipal bonds are valued by independent pricing services
or dealers using the mean of the bid and asked prices or, in the absence of
market quotations, at fair value based upon yield data relating to municipal
bonds with similar characteristics and general market conditions. Securities
which are not valued by independent pricing services or dealers are valued at
fair value using procedures established in good faith by the Board of Trustees.
Futures contracts are valued at the settlement price established each day on the
exchange on which they are traded. Short-term securities with remaining
maturities of 60 days or less are valued at amortized cost, which approximates
market value.
B. SECURITY TRANSACTIONS Security transactions are recorded on a trade date
basis. Realized gains and losses are determined on an identified cost basis. The
Trust may purchase and sell securities on a "when-issued" or "delayed delivery"
basis with settlement to occur at a later date. The value of the security so
purchased is subject to market fluctuations during this period. The Trust will
segregate assets with the custodian having an aggregate value at least equal to
the amount of the when-issued or delayed delivery purchase commitments until
payment is made. At April 30, 2004, the Trust has $3,809,523 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 TRUST FOR INVESTMENT GRADE 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........................ $658,317,292
============
Gross tax unrealized appreciation........................... $ 50,305,563
Gross tax unrealized depreciation........................... (1,215,284)
------------
Net tax unrealized appreciation on investments.............. $ 49,090,279
============
</Table>
E. DISTRIBUTION OF INCOME AND GAINS The Trust declares and pays monthly
dividends from net investment income to common shareholders. Net realized gains,
if any, are distributed annually on a pro rata basis to common and preferred
shareholders. Distributions from net realized gains for book purposes may
include short-term capital gains and a portion of futures gains, which are
included as ordinary income for tax purposes.
The tax character of distributions paid during the year ended October 31,
2003 was as follows:
<Table>
Distributions paid from:
Ordinary income........................................... $1,160,043
Long-term capital gain.................................... 8,535,890
----------
$9,695,933
==========
</Table>
As of October 31, 2003, the components of distributable earnings on a tax
basis were as follows:
<Table>
Undistributed ordinary income............................... $ 123,357
Undistributed long-term capital gain........................ 3,036,707
</Table>
Net realized gains or losses may differ for financial and tax reporting
purposes primarily as a result of the deferral of losses relating to wash sale
transactions.
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of the Trust's Investment Advisory Agreement, Van Kampen Asset
Management (the "Adviser") provides investment advice and facilities to the
Trust for an annual fee payable monthly of .60% of the average daily net assets
of the Trust. In addition, the Trust pays a monthly administrative fee to Van
Kampen Investments Inc. or its affiliates (collectively "Van Kampen"), the
Trust's Administrator, at an annual rate of .05% of the average daily net assets
of the Trust. Effective June 1, 2004, the administrative fee was reduced from
..05% to .00%.
For the six months ended April 30, 2004, the Trust recognized expenses of
approximately $22,300 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 $30,500
representing Van Kampen's cost of providing accounting and legal
29
VAN KAMPEN TRUST FOR INVESTMENT GRADE MUNICIPALS
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2004 (UNAUDITED) continued
services to the Trust, which are reported as part of "Other" and "Legal"
expenses, respectively, in the Statement of Operations.
Certain officers and trustees of the Trust are also officers and directors
of Van Kampen. The Trust does not compensate its officers or trustees who are
officers of Van Kampen.
The Trust 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 $45,535,141 and $49,835,753,
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 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 on U.S. Treasury Bonds and Notes
and typically closes the contract prior to delivery date. 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
Investment Company Act of 1940, 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 TRUST FOR INVESTMENT GRADE MUNICIPALS
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2004 (UNAUDITED) continued
Transactions in futures contracts, each with a par value of $100,000, for
the six months ended April 30, 2004, were as follows:
<Table>
<Caption>
CONTRACTS
Outstanding at October 31, 2003............................. 856
Futures Opened.............................................. 1,238
Futures Closed.............................................. (1,576)
------
Outstanding at April 30, 2004............................... 518
======
</Table>
The futures contracts outstanding as of April 30, 2004, and the description
and unrealized appreciation/depreciation were as follows:
<Table>
<Caption>
UNREALIZED
APPRECIATION/
CONTRACTS DEPRECIATION
SHORT CONTRACTS:
U.S. Treasury Notes 10-Year Futures June 2004 (Current
Notional Value of $110,500 per contract).................. 90 227,431
U.S. Treasury Notes 5-Year Futures June 2004 (Current
Notional Value of $109,938 per contract).................. 428 793,997
---- ----------
518 $1,021,428
==== ==========
</Table>
5. PREFERRED SHARES
The Trust has outstanding 10,600 Auction Preferred Shares ("APS") in four
series. Series A, B, and C contain 3,000 shares each while Series D contains
1,600 shares. Dividends are cumulative and the dividend rate is currently reset
through an auction process. The dividend period is 28 days for Series A, B, C
and D. The average rate in effect on April 30, 2004 was 1.051%. During the six
months ended April 30, 2004, the rates ranged from 0.780% to 1.600%.
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 TRUST FOR INVESTMENT GRADE 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, NY 10020
CUSTODIAN AND TRANSFER AGENT
STATE STREET BANK
AND TRUST COMPANY
c/o EquiServe
P.O. Box 43011
Providence, Rhode Island 02940-3011
LEGAL COUNSEL
SKADDEN, ARPS, SLATE,
MEAGHER & FLOM LLP
333 West Wacker Drive
Chicago, Illinois 60606
INDEPENDENT AUDITORS
DELOITTE & TOUCHE LLP
180 North Stetson Avenue
Chicago, Illinois 60601
* "Interested persons" of the Trust, as defined in the Investment Company Act
of 1940, as amended.
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.
VGM SAR 6/04 RN04-00757P-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 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