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 811-5320
Van Kampen Municipal Income Trust
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
1221 Avenue of the Americas, New York, New York 10020
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Ronald Robison
1221 Avenue of the Americas, New York, New York 10020
- --------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: 212-762-4000
Date of fiscal year end: 6/30
Date of reporting period: 12/31/04
Item 1. Report to Shareholders.
The Trust's semi-annual report transmitted to shareholders pursuant to
Rule 30e-1 under the Investment Company Act of 1940 is as follows:
Welcome, Shareholder
In this report, you'll learn about how your investment in Van Kampen
Municipal Income Trust performed during the semiannual period. The
portfolio management team will provide an overview of the market
conditions and discuss some of the factors that affected investment
performance during the reporting period. In addition, this report
includes the trust's financial statements and a list of trust investments
as of December 31, 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>
---------------------------------------------------------------------------------------
NOT FDIC INSURED OFFER NO BANK GUARANTEE MAY LOSE VALUE
---------------------------------------------------------------------------------------
NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY NOT A DEPOSIT
---------------------------------------------------------------------------------------
</Table>
Performance Summary as of 12/31/04
<Table>
<Caption>
MUNICIPAL INCOME TRUST
SYMBOL: VMT
- ------------------------------------------------------------
AVERAGE ANNUAL BASED ON BASED ON
TOTAL RETURNS NAV MARKET PRICE
Since Inception (8/26/88) 8.15% 6.70%
10-year 8.18 6.13
5-year 10.36 10.26
1-year 6.00 1.76
6-month 7.79 5.35
- ------------------------------------------------------------
</Table>
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NO GUARANTEE OF
FUTURE RESULTS, AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE FIGURES
SHOWN. FOR THE MOST RECENT MONTH-END PERFORMANCE FIGURES, PLEASE VISIT
VANKAMPEN.COM OR SPEAK WITH YOUR FINANCIAL ADVISOR. INVESTMENT RETURNS, 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.
The NAV per share is determined by dividing the value of the trust's portfolio
securities, cash and other assets, less all liabilities, by the total number of
common shares outstanding. The common share market price is the price the market
is willing to pay for shares of the trust at a given time. Common share market
price is influenced by a range of factors, including supply and demand and
market conditions. Total return assumes an investment at the beginning of the
period, reinvestment of all distributions for the period in accordance with the
trust's dividend reinvestment plan, and sale of all shares at the end of the
period.
The Lehman Brothers Municipal Bond Index is a broad-based statistical composite
of municipal bonds. The index does not include any expenses, fees or sales
charges, which would lower performance. The index is unmanaged and should not be
considered an investment. It is not possible to invest directly in an index.
Source for index performance: Lipper Inc.
1
Fund Report
FOR THE 6-MONTH PERIOD ENDED DECEMBER 31, 2004
Van Kampen Municipal Income Trust is managed by the Adviser's Municipal Fixed
Income team. Current members include Thomas Byron and Robert Wimmel, Vice
Presidents of the Adviser; and John Reynoldson, Executive Director of the
Adviser.(1)
MARKET CONDITIONS
The fixed income markets during the six months ended December 31, 2004 were
focused on the ongoing actions of the Federal Reserve Open Market Committee (the
"Fed"). In keeping with Chairman Alan Greenspan's comments in the spring of
2004, the Fed reversed its stance and began to tighten interest rates at its
June 30, 2004 meeting. The Fed went on to raise rates at its four subsequent
meetings through the end of the year. By the end of the review period, the
federal funds rate stood at 2.25%, its highest level since 2002, and the fixed
income market appeared to anticipate further increases in 2005.
These shifts helped boost yields on shorter-maturity securities in the municipal
market. In the past, this stage of the economic cycle has typically been marked
by rising yields for intermediate and longer-maturity bonds. That was not the
case during the six-month period, however. During this time, these yields
actually fell, which led to a general "flattening" of the yield curve.
Lower-quality bonds also outperformed their higher-quality peers during the
period.
PERFORMANCE ANALYSIS
The trust's return 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 may differ significantly, as they did during the reporting period when
the fund showed a
(1)Team members may change at any time without notice.
2
7.79 percent gain on an NAV basis and a 5.35 percent gain on a market-price
basis. The fund's return at NAV outperformed its benchmark, the Lehman Brothers
Municipal Bond Index. (See table below.)
TOTAL RETURN FOR THE SIX-MONTH PERIOD ENDED DECEMBER 31, 2004
<Table>
<Caption>
- ---------------------------------------------------------------
BASED ON BASED ON LEHMAN BROTHERS MUNICIPAL
NAV MARKET PRICE BOND INDEX
7.79% 5.35% -0.68%
- ---------------------------------------------------------------
</Table>
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NO GUARANTEE OF
FUTURE RESULTS, AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE FIGURES
SHOWN. 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.
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 reinvested in longer-term securities, taking advantage
of the difference between short- and longer-term rates.
While the trust's strategy of using leverage boosted returns, its performance
was hampered by our general interest rate strategy. The trust entered the period
with its duration (a measure of interest rate sensitivity) below that of the
Lehman Brothers Municipal Bond Index. This strategy limited the trust's
participation in the rally of the longer-maturity portion of the yield curve.
The trust's performance was also hindered by its emphasis on maintaining a
relatively high average credit quality. At the end of the period, roughly 94
percent of the portfolio's holdings were rated A or better.
During the period, the trust's portfolio remained well diversified across the
major sectors of the municipal market. The three largest sector exposures at the
end of December were general purpose, public building and public education.
Additions to the portfolio tended to be in the 20 to 25-year segment of the
market, where we favored well-structured securities with reduced interest-rate
sensitivity. These securities gained strongly during the period, and were a
contributor to the trust's positive returns.
Should interest rates continue to rise, we anticipate finding more securities
with attractive yields than have been available for quite some time. The coming
six months promise to be an interesting time for the municipal bond market --
and for the Fed.
There is no guarantee that any securities will continue to perform well or be
held by the trust in the future.
3
<Table>
<Caption>
RATINGS ALLOCATION AS OF 12/31/04
AAA/Aaa 84.3%
AA/Aa 7.0%
A/A 2.7%
BBB/Baa 3.0%
BB/Ba 0.4%
Non-Rated 2.6%
</Table>
<Table>
<Caption>
<Caption>
TOP 5 SECTORS AS OF 12/31/04
General Purpose 21.2%
Public Building 12.0%
Public Education 10.5%
Wholesale Electric 9.3%
Health Care 9.2%
<Caption>
SUMMARY OF INVESTMENTS BY STATE CLASSIFICATION AS OF 12/31/04
New York 11.4%
Illinois 9.6%
Texas 9.4%
California 7.4%
Florida 6.3%
Georgia 4.9%
Pennsylvania 4.5%
Ohio 3.8%
North Carolina 3.7%
Washington 3.5%
Louisiana 2.9%
New Jersey 2.8%
Nevada 2.5%
Kentucky 2.2%
Indiana 2.2%
Massachusetts 2.0%
Kansas 2.0%
Missouri 2.0%
Colorado 1.8%
Oregon 1.6%
Michigan 1.5%
Alabama 1.4%
Wisconsin 1.4%
Alaska 1.2%
Tennessee 1.1%
South Carolina 1.0%
</Table>
<Table>
(continued on next page)
</Table>
4
<Table>
<Caption>
SUMMARY OF INVESTMENTS BY STATE CLASSIFICATION AS OF 12/31/04
(continued from previous page)
New Mexico 1.0%
West Virginia 0.8%
Guam 0.6%
District of Columbia 0.6%
Connecticut 0.6%
Rhode Island 0.5%
Maryland 0.4%
Mississippi 0.3%
Utah 0.2%
Oklahoma 0.2%
Arizona 0.2%
Puerto Rico 0.2%
South Dakota 0.2%
-----
Total Investments 100.0%
</Table>
Subject to change daily. Ratings allocations and summary of investments by state
classifications are as a percentage of total investments. Sectors are as a
percentage of long-term investments. Provided for informational purposes only
and should not be deemed as a recommendation to buy securities in the sectors
shown above. Securities are classified by sectors that represent broad groupings
of related industries. Ratings allocation based upon ratings as issued by
Standard and Poor's and Moody's, respectively. 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.
5
FOR MORE INFORMATION ABOUT PORTFOLIO HOLDINGS
Each Van Kampen trust provides a complete schedule of portfolio holdings
in its semiannual and annual reports within 60 days of the end of the
trust's second and fourth fiscal quarters by filing the schedule
electronically with the Securities and Exchange Commission (SEC). The
semiannual reports are filed on Form N-CSRS and the annual reports are
filed on Form N-CSR. Van Kampen also delivers the semiannual and annual
reports to trust shareholders, and makes these reports available on its
public web site, www.vankampen.com. In addition to the semiannual and
annual reports that Van Kampen delivers to shareholders and makes
available through the Van Kampen public web site, each trust files a
complete schedule of portfolio holdings with the SEC for the trust's
first and third fiscal quarters on Form N-Q. Van Kampen does not deliver
the reports for the first and third fiscal quarters to shareholders, nor
are the reports posted to the Van Kampen public web site. You may,
however, obtain the Form N-Q filings (as well as the Form N-CSR and
N-CSRS filings) by accessing the SEC's web site, http://www.sec.gov. You
may also review and copy them at the SEC's Public Reference Room in
Washington, DC. Information on the operation of the SEC's Public
Reference Room may be obtained by calling the SEC at 1-800-SEC-0330. You
can also request copies of these materials, upon payment of a duplicating
fee, by electronic request at the SEC's e-mail address
(publicinfo@sec.gov) or by writing the Public Reference section of the
SEC, Washington, DC 20549-0102.
In addition to filing a complete schedule of portfolio holdings with the
SEC each fiscal quarter, each Van Kampen trust makes portfolio holdings
information available by periodically providing the information on its
public web site, www.vankampen.com. Each Van Kampen trust provides a
complete schedule of portfolio holdings on the public web site on a
calendar-quarter basis approximately 30 days after the close of the
calendar quarter. Van Kampen closed-end funds do not presently provide
partial lists of their portfolio holdings on a monthly basis, but may do
so in the future.
You may obtain copies of a trust's fiscal quarter filings, or its monthly
or calendar-quarter web site postings, by contacting Van Kampen Client
Relations at 1-800-847-2424.
6
PROXY VOTING POLICIES AND PROCEDURES AND PROXY VOTING RECORD
The trust's policies and procedures with respect to the voting of proxies
relating to the trust's portfolio securities and information on how the
trust voted proxies relating to portfolio securities during the most
recent twelve-month period ended June 30 is available without charge,
upon request, by calling 1-800-847-2424 or by visiting our web site at
www.vankampen.com. This information is also available on the Securities
and Exchange Commission's web site at http://www.sec.gov.
7
VAN KAMPEN MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2004 (UNAUDITED)
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
MUNICIPAL BONDS 154.7%
ALABAMA 2.2%
$3,660 Alabama St Brd Ed Rev & Impt Southn Univ St
Cmnty Rfdg (MBIA Insd)..................... 5.250% 07/01/20 $ 4,012,055
1,320 Alabama St Univ Rev Tuit Ser B (Prerefunded
@ 01/01/12) (MBIA Insd).................... 5.250 03/01/33 1,501,302
1,000 Jefferson Cnty, AL Ltd Oblig Sch Wt Ser
A.......................................... 5.000 01/01/24 1,019,970
-------------
6,533,327
-------------
ALASKA 1.9%
3,650 Alaska St Intl Arpt Rev Ser B (AMBAC
Insd)...................................... 5.250 10/01/27 3,872,540
1,575 Matanuska-Susitna Boro, AK Ctf Part Pub
Safety Bldg Lease (FSA Insd)............... 5.750 03/01/16 1,755,652
-------------
5,628,192
-------------
ARIZONA 0.4%
1,000 Arizona Hlth Fac Auth Hosp John C Lincoln
Hlth Network............................... 6.375 12/01/37 1,068,590
-------------
CALIFORNIA 11.5%
2,500 California St (AMBAC Insd)................. 5.000 04/01/21 2,640,525
4,500 California St (AMBAC Insd)................. 5.125 10/01/27 4,722,300
1,000 California St Dept Wtr Res Ctr Wtr Sys Ser
X (FGIC Insd).............................. 5.000 12/01/29 1,030,600
1,000 California St Dept Wtr Res Pwr Ser A....... 6.000 05/01/15 1,154,610
1,000 California St Dept Wtr Res Pwr Ser A (AMBAC
Insd)...................................... 5.500 05/01/16 1,127,220
2,500 California St Dept Wtr Res Pwr Ser A (AMBAC
Insd) (a).................................. 5.375 05/01/18 2,766,250
5,000 California St Univ Rev & Co Systemwide Ser
A (AMBAC Insd)............................. 5.000 11/01/33 5,125,050
5,000 Contra Costa, CA Home Mtg Fin Auth Home Mtg
Rev (Escrowed to Maturity) (MBIA Insd)..... * 09/01/17 2,688,700
4,000 Los Angeles, CA Dept Wtr & Pwr Ser A (FGIC
Insd)...................................... 5.125 07/01/40 4,100,080
2,500 Los Angeles, CA Uni Sch Dist Ser A
(FSA Insd)................................. 5.250 07/01/20 2,740,675
2,000 Los Angeles, CA Wtr & Pwr Rev Pwr Sys Ser B
(FSA Insd)................................. 5.000 07/01/28 2,069,280
1,500 Metropolitan Wtr Dist Southn CA Auth Ser B
1 (FGIC Insd).............................. 5.000 10/01/33 1,543,260
1,750 Palm Springs, CA Fin Auth Lease Rev
Convention Ctr Proj Ser A (MBIA Insd)...... 5.500 11/01/35 1,923,687
1,000 Santa Clara Cnty, CA Brd Ed Rfdg
(MBIA Insd)................................ 5.000 04/01/25 1,043,390
-------------
34,675,627
-------------
</Table>
8 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
COLORADO 2.8%
$1,500 Arapahoe Cnty, CO Cap Impt Tr Fd Hwy Rev
E-470 Proj (Prerefunded @ 08/31/05)........ 7.000% 08/31/26 $ 1,593,720
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 1,062,150
3,405 Colorado Ed & Cultural Fac Impt Charter Sch
Rfdg (XLCA Insd)........................... 5.250 12/01/23 3,664,563
1,000 Colorado Hlth Fac Auth Rev Catholic Hlth
Initiatives Ser A (Escrowed to Maturity)... 5.500 03/01/32 1,107,490
1,000 El Paso Cnty, CO Ctf Part Detention Fac
Proj Ser B (AMBAC Insd).................... 5.375 12/01/18 1,110,890
-------------
8,538,813
-------------
CONNECTICUT 1.0%
1,750 Connecticut St Spl Oblig Pkg Rev Bradley
Intl Arpt Ser A (AMT) (ACA Insd)........... 6.600 07/01/24 1,897,770
1,000 Hartford, CT Pkg Sys Rev Ser A............. 6.500 07/01/25 1,036,180
-------------
2,933,950
-------------
DISTRICT OF COLUMBIA 1.0%
2,775 District of Columbia Hosp Rev Medlantic
Hlthcare Ser A Rfdg (Escrowed to Maturity)
(MBIA Insd)................................ 5.250 08/15/12 2,949,714
-------------
FLORIDA 9.7%
2,500 Brevard Cnty, FL Sch Brd Ctf Ser B Rfdg
(FGIC Insd)................................ 5.000 07/01/21 2,675,650
2,000 Escambia Cnty, FL Hlth Fac Auth Rev (AMBAC
Insd)...................................... 5.950 07/01/20 2,041,500
1,000 Florida St Brd Ed Lottery Rev Ser A (FGIC
Insd)...................................... 5.750 07/01/11 1,142,050
2,000 Florida St Dept Environmental Prot
Preservtn Rev Ser A (FGIC Insd)............ 5.750 07/01/10 2,282,940
2,295 Florida St Dept Trans Tpk Rev Ser A (b).... 5.000 07/01/29 2,375,600
1,745 Hillsborough Cnty, FL Port Dist Tampa Port
Auth Proj Ser A (AMT) (MBIA Insd).......... 5.375 06/01/27 1,839,753
1,000 Jea, FL Elec Sys Rev Ser 3 Ser A........... 5.500 10/01/41 1,061,390
1,000 Marion Cnty, FL Sch Brd Ctf (FSA Insd)..... 5.250 06/01/18 1,094,310
1,500 Miami Beach, FL Stormwtr Rev (FGIC Insd)... 5.250 09/01/25 1,618,005
1,720 Miami-Dade Cnty, FL Aviation Rev Miami Intl
Arpt (AMT) (FGIC Insd)..................... 5.375 10/01/32 1,790,812
3,000 Orange Cnty, FL Sch Brd Ctf Part Ser A
(AMBAC Insd)............................... 5.250 08/01/14 3,347,250
4,000 Orange Cnty, FL Tourist Dev Tax Rev (AMBAC
Insd)...................................... 5.625 10/01/14 4,462,360
</Table>
See Notes to Financial Statements 9
VAN KAMPEN MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
FLORIDA (CONTINUED)
$2,000 Orange Cnty, FL Tourist Dev Tax Rev (AMBAC
Insd)...................................... 5.500% 10/01/31 $ 2,165,340
1,115 Tallahassee, FL Lease Rev FL St Univ Proj
Ser A (MBIA Insd).......................... 5.500 08/01/19 1,245,868
-------------
29,142,828
-------------
GEORGIA 7.6%
1,000 Columbus, GA Wtr & Sew Rev Rfdg (MBIA Insd)
(b)........................................ 5.000 05/01/25 1,052,110
4,023 Fulton Cnty, GA Lease Rev (Acquired
12/23/94, Cost $4,023,144) (c)............. 7.250 06/15/10 4,209,898
2,635 Georgia Muni Elec Auth Pwr Rev Ser A (MBIA
Insd)...................................... 6.500 01/01/20 3,340,047
3,000 Georgia Muni Elec Auth Pwr Rev Ser B Rfdg
(FGIC Insd)................................ 6.250 01/01/17 3,668,880
2,500 Georgia St Ser D........................... 6.000 10/01/05 2,574,450
2,335 Georgia St Ser D........................... 6.000 10/01/06 2,486,215
2,000 Municipal Elec Auth GA Combustion Turbine
Proj Ser A (MBIA Insd)..................... 5.250 11/01/22 2,177,540
800 Royston, GA Hosp Auth Hosp Rev Ctf Hlthcare
Sys Inc.................................... 6.700 07/01/16 819,760
2,500 Royston, GA Hosp Auth Hosp Rev Ctf Hlthcare
Sys Inc.................................... 6.500 07/01/27 2,499,425
-------------
22,828,325
-------------
ILLINOIS 14.9%
4,000 Chicago, IL Brd Ed Chicago Sch Reform Ser A
(AMBAC Insd)............................... 5.250 12/01/27 4,233,440
1,400 Chicago, IL Brd Ed Ser A (MBIA Insd)....... 5.500 12/01/28 1,529,724
2,250 Chicago, IL Neighborhoods Alive 21 Ser A
(FGIC Insd)................................ 5.500 01/01/13 2,511,630
1,500 Chicago, IL O'Hare Intl Arpt Rev Gen Arpt
Third Lien C 2 Rfdg (AMT) (FSA Insd)....... 5.250 01/01/30 1,550,520
1,500 Chicago, IL O'Hare Intl Arpt Rev Gen Arpt
Third Lien C-2 Rfdg (AMT) (XLCA Insd)...... 5.250 01/01/34 1,548,315
1,000 Chicago, IL O'Hare Intl Arpt Rev Second
Lien Passenger Fac Ser B (AMBAC Insd)...... 5.500 01/01/16 1,110,580
1,000 Chicago, IL Proj Ser C Rfdg (FGIC Insd).... 5.750 01/01/14 1,136,610
1,000 Chicago, IL Proj Ser C Rfdg (FGIC Insd).... 5.750 01/01/15 1,131,470
4,895 Chicago, IL Pub Bldg Comm Bldg Rev Ser A
(Escrowed to Maturity) (MBIA Insd)......... * 01/01/07 4,666,942
1,000 Chicago, IL Ser B Rfdg (AMBAC Insd)........ 5.125 01/01/15 1,105,090
2,000 Chicago, IL Wastewtr Transmission Rev
Second Lien (Prerefunded @ 01/01/10) (MBIA
Insd)...................................... 5.750 01/01/25 2,293,420
1,960 Cook Cnty, IL Cmnty Cons Sch Dist
(FSA Insd)................................. 5.500 12/01/13 2,245,356
1,000 Cook Cnty, IL Ser A (FGIC Insd)............ 5.500 11/15/31 1,083,940
</Table>
10 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
ILLINOIS (CONTINUED)
$3,230 Cook Cnty, IL Ser A Rfdg (MBIA Insd)....... 5.625% 11/15/16 $ 3,530,971
2,310 Illinois Dev Fin Auth Rev Adventist Hlth
Ser A (MBIA Insd).......................... 5.500 11/15/13 2,616,883
2,500 Illinois Dev Fin Auth Rev Adventist Hlth
Ser A (MBIA Insd).......................... 5.500 11/15/15 2,830,950
1,335 Illinois Dev Fin Auth Rev Bradley Univ Proj
(Prerefunded @ 08/01/09) (AMBAC Insd)...... 5.375 08/01/24 1,501,728
2,000 Illinois Ed Fac Auth Rev Lewis Univ........ 6.125 10/01/26 1,936,800
1,500 Illinois St First Ser (LOC: Bank of
America) (FGIC Insd)....................... 5.375 11/01/14 1,678,050
1,900 Kendall, Kane & Will Cntys, IL Cmnty Unit
Sch Dist No. 308 Ser B (FGIC Insd)......... 5.250 10/01/21 2,066,573
1,250 Sangamon Cnty, IL Ctf Part................. 10.000 12/01/06 1,420,612
1,000 Schaumburg, IL Ser B (FGIC Insd)........... 5.000 12/01/41 1,015,200
-------------
44,744,804
-------------
INDIANA 3.4%
2,420 Brownsburg, IN Sch Bldg Corp First Mtg
Brownsburg Cmnty Sch (MBIA Insd)........... 5.550 02/01/24 2,672,963
1,000 Clark Pleasant, IN Cmnty Sch First Mtg
(AMBAC Insd)............................... 5.500 07/15/18 1,115,620
4,000 Indiana Hlth Fac Fin Auth Rev Deaconess
Hosp Ser A (AMBAC Insd).................... 5.375 03/01/34 4,241,160
2,000 Indiana Trans Fin Auth Toll Rfdg
(AMBAC Insd)............................... 5.375 07/01/09 2,123,740
-------------
10,153,483
-------------
KANSAS 2.7%
3,810 Kansas St Dev Fin Auth Rev KS Proj Ser N
(AMBAC Insd)............................... 5.250 10/01/22 4,103,637
1,250 Kansas St Dev Fin Auth Rev KS St Proj
(AMBAC Insd)............................... 5.500 03/01/16 1,392,650
2,235 Sedgwick Cnty, KA Uni Sch Dist No. 259
Wichita (Prerefunded @ 09/01/10)
(MBIA Insd)................................ 5.500 09/01/11 2,531,316
-------------
8,027,603
-------------
KENTUCKY 3.4%
2,190 Kenton Cnty, KY Arpt Brd Rev Cincinnati/
Northn KY Intl Arpt Ser A Rfdg (AMT) (MBIA
Insd)...................................... 6.250 03/01/09 2,440,821
5,000 Kentucky St Ppty & Bldgs Commn Proj No. 74
Rfdg (Prerefunded 02/01/12) (FSA Insd)..... 5.375 02/01/16 5,680,150
2,000 Kentucky St Tpk Auth Econ Dev
Revitalization Proj Rfdg (FSA Insd)........ 5.500 07/01/07 2,154,380
-------------
10,275,351
-------------
</Table>
See Notes to Financial Statements 11
VAN KAMPEN MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
LOUISIANA 4.5%
$4,395 Ernest N Morial New Orleans LA Sr Sub Ser A
(AMBAC Insd)............................... 5.250% 07/15/22 $ 4,793,011
3,000 Lafayette, LA Util Rev (MBIA Insd)......... 5.250 11/01/21 3,298,410
1,000 Louisiana Hsg Fin Agy Rev Azalea Estates
Ser A Rfdg (AMT) (GNMA Collateralized)..... 5.375 10/20/39 1,010,070
2,580 Louisiana Loc Govt Environmental Rev
Southeastn LA Student Hsg A (MBIA Insd).... 5.250 08/01/21 2,820,585
1,500 Louisiana St Ser A (FGIC Insd)............. 5.500 11/15/08 1,665,645
-------------
13,587,721
-------------
MARYLAND 0.6%
2,180 Baltimore, MD Cap Apprec Ser A (FGIC
Insd)...................................... * 10/15/09 1,682,742
-------------
MASSACHUSETTS 3.1%
4,000 Massachusetts St Cons Ln Ser B (Prerefunded
@ 03/01/12) (FSA Insd)..................... 5.500 03/01/17 4,527,920
1,500 Massachusetts St Fed Hwy Gnt Antic Nt
Ser A...................................... 5.750 06/15/15 1,698,510
1,000 Massachusetts St Indl Fin Agy Rev Higher Ed
Hampshire College Proj (Prerefunded @
10/01/07).................................. 5.625 10/01/12 1,100,200
2,000 Massachusetts St Spl Oblig Dedicated Tax
Rev (FGIC Insd)............................ 5.000 01/01/34 2,057,680
-------------
9,384,310
-------------
MICHIGAN 2.4%
1,000 Grand Rapids, MI Wtr Supply Sys Rfdg (FGIC
Insd)...................................... 5.750 01/01/13 1,130,340
1,180 Hillsdale, MI Hosp Fin Auth Hosp Rev
Hillsdale Cmnty Hlth Ctr................... 5.750 05/15/18 1,229,289
1,000 Michigan St Strategic Fd Detroit Edison Co
Proj C Rfdg (AMT) (XLCA Insd).............. 5.450 12/15/32 1,046,980
2,500 Michigan St Strategic Fd Detroit Edison
Conv Rfdg (AMBAC Insd)..................... 4.850 09/01/30 2,689,000
1,000 Michigan St Strategic Fd Detroit Edison
Pollutn Ctl Ser B Rfdg (AMT)............... 5.650 09/01/29 1,039,200
-------------
7,134,809
-------------
MISSISSIPPI 0.5%
1,500 Mississippi Hosp Equip & Fac MS Baptist Med
Ctr Rfdg (MBIA Insd)....................... 6.000 05/01/13 1,547,820
-------------
MISSOURI 3.1%
1,250 Cole Cnty, MO Indl Dev Auth Sr Living Fac
Rev Lutheran Sr Svcs Heisinger Proj........ 5.500 02/01/35 1,294,200
3,400 Missouri St Hwys & Trans Commn Rd Rev Ser
A.......................................... 5.500 02/01/08 3,713,616
</Table>
12 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
MISSOURI (CONTINUED)
$2,720 Platte Cnty, MO Neighborhood Impt Parkville
B (MBIA Insd) (b).......................... 5.000% 02/01/22 $ 2,865,248
1,250 Saint Charles, MO Ctf Part Ser B........... 5.500 05/01/18 1,338,225
-------------
9,211,289
-------------
NEVADA 3.9%
4,000 Clark Cnty, NV Arpt Rev Sub Lien Ser A-2
(FGIC Insd)................................ 5.000 07/01/36 4,054,360
3,965 Clark Cnty, NV Bd Bk (FGIC Insd)........... 5.500 06/01/09 4,416,891
3,000 Clark Cnty, NV Indl Dev Rev Southwest Gas
Corp Proj Ser A (AMT) (AMBAC Insd)......... 5.250 07/01/34 3,099,720
-------------
11,570,971
-------------
NEW JERSEY 4.3%
3,000 Casino Reinv Dev Auth NJ Hotel Room Fee Rev
(AMBAC Insd)............................... 5.250 01/01/22 3,311,550
1,200 New Jersey Econ Dev Auth Rev Cigarette
Tax........................................ 5.750 06/15/29 1,259,280
1,500 New Jersey Econ Dev Auth Rev Motor Vehicle
Sur Rev Ser A (MBIA Insd).................. 5.000 07/01/23 1,588,995
1,835 New Jersey St Ed Fac Auth Higher Ed Cap
Impt Ser A (AMBAC Insd).................... 5.250 09/01/21 1,999,856
2,000 New Jersey St Trans Corp Ctf Fed Trans
Admin Gnts Ser A (AMBAC Insd).............. 5.500 09/15/13 2,276,580
2,095 New Jersey St Trans Tr Fd Auth Trans Sys
Ser A...................................... 5.750 06/15/17 2,452,973
-------------
12,889,234
-------------
NEW MEXICO 1.5%
4,000 Santa Fe, NM Gross Rcpt Tax Impt (AMBAC
Insd)...................................... 5.250 06/01/13 4,452,000
-------------
NEW YORK 17.6%
3,000 Metropolitan Trans Auth NY Ser A Rfdg
(AMBAC Insd)............................... 5.500 11/15/18 3,372,930
2,500 Metropolitan Trans Auth NY Ser A Rfdg (FGIC
Insd)...................................... 5.250 11/15/31 2,652,600
2,500 Nassau Cnty, NY Interim Fin Auth Sales Tax
Secd Ser A (Prerefunded @ 11/15/10)........ 5.750 11/15/13 2,887,175
5,700 New York City Muni Wtr Fin Auth Ser A (FSA
Insd)...................................... 5.375 06/15/17 6,360,288
4,500 New York City Ser B (AMBAC Insd)........... 7.250 08/15/07 5,046,165
445 New York City Ser C........................ 7.000 08/15/08 446,664
2,500 New York City Ser E (FSA Insd)............. 5.000 11/01/20 2,679,400
1,000 New York City Ser H........................ 5.750 03/15/13 1,116,100
6,930 New York City Trans Auth Trans Fac
Livingston Plaza Proj Rfdg (Escrowed to
Maturity) (FSA Insd)....................... 5.400 01/01/18 7,893,963
</Table>
See Notes to Financial Statements 13
VAN KAMPEN MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 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 $ 3,373,530
3,000 New York St Dorm Auth Rev Hosp
(MBIA Insd)................................ 5.000 08/01/33 3,088,530
2,000 New York St Dorm Auth Rev Sch Dist Fin Pgm
Ser D (MBIA Insd).......................... 5.500 10/01/17 2,246,960
3,000 New York St Urban Dev Corp Rev Personal
Income Tax Ser C (Prerefunded @ 03/15/13)
(FGIC Insd)................................ 5.500 03/15/18 3,466,470
3,000 New York, NY City Muni Wtr Fin Auth Wtr &
Sew Sys Rev Ser A (AMBAC Insd)............. 5.000 06/15/35 3,076,860
2,680 Port Auth NY & NJ Cons 119th Ser (AMT)
(FGIC Insd)................................ 5.500 09/15/17 2,807,916
2,500 Sales Tax Asset Receivable Corp Ser A (MBIA
Insd)...................................... 5.000 10/15/23 2,664,200
-------------
53,179,751
-------------
NORTH CAROLINA 5.7%
2,000 Charlotte, NC Ctf Part Convention Fac Proj
Ser A Rfdg................................. 5.500 08/01/19 2,238,820
3,000 North Carolina Eastern Muni Pwr Agy Pwr Sys
Rev Ser D.................................. 6.750 01/01/26 3,336,780
10,000 North Carolina Muni Pwr Agy No 1 Catawba
Elec Rev Rfdg (MBIA Insd).................. 6.000 01/01/12 11,658,300
-------------
17,233,900
-------------
OHIO 5.9%
1,000 Cleveland, OH Muni Sch Dist (FSA Insd)..... 5.250 12/01/23 1,090,280
3,000 Columbus, OH City Sch Dist Sch Fac Constr &
Impt (FSA Insd)............................ 5.250 12/01/22 3,297,960
1,000 Cuyahoga Cnty, OH Hosp Fac Rev Canton Inc
Proj....................................... 7.500 01/01/30 1,129,120
2,660 Licking Heights, OH Loc Sch Dist (FGIC
Insd)...................................... 5.250 12/01/23 2,906,662
1,000 Lorain Cnty, OH Hosp Rev Catholic
Hlthcare................................... 5.375 10/01/30 1,030,570
2,000 Lorain, OH City Sch Dist Classroom Fac Impt
(MBIA Insd)................................ 5.250 12/01/20 2,191,040
1,000 Ohio St Air Quality Dev Auth Rev JMG Fdg
Ltd Part Proj Rfdg (AMT) (AMBAC Insd)...... 6.375 04/01/29 1,023,100
1,500 Ohio St Bldg Auth St Fac Admin Bldg Fd Proj
A (FSA Insd)............................... 5.500 04/01/15 1,679,850
3,000 University Cincinnati OH Gen Ser A
(FGIC Insd)................................ 5.500 06/01/09 3,348,510
-------------
17,697,092
-------------
OKLAHOMA 0.4%
1,000 Central, OK Trans & Pkg Auth Pkg Sys (AMBAC
Insd)...................................... 5.000 07/01/18 1,071,090
-------------
</Table>
14 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
OREGON 2.5%
$1,000 Clackamas Cnty, OR Sch Dist................ 5.500% 06/01/10 $ 1,129,810
1,350 Oregon Hlth Sciences Univ Insd Ser A (MBIA
Insd)...................................... 5.250 07/01/22 1,471,986
2,060 Oregon St Dept Admin Ser C Rfdg
(MBIA Insd)................................ 5.250 11/01/17 2,266,948
1,250 Portland, OR Cmnty College Dist Ser B...... 5.250 06/01/12 1,387,063
1,135 Portland, OR Swr Sys Rev Second Lien Ser A
Rfdg (FSA Insd)............................ 5.250 06/01/19 1,246,480
-------------
7,502,287
-------------
PENNSYLVANIA 7.0%
1,500 Allegheny Cnty, PA San Auth Swr
(MBIA Insd)................................ 5.500 12/01/30 1,637,520
1,000 Allegheny Cnty, PA Ser C-53 Rfdg
(FGIC Insd)................................ 5.500 11/01/14 1,120,460
1,000 Greensburg Salem, PA Sch Dist Rfdg (FGIC
Insd)...................................... 5.375 09/15/15 1,122,750
2,000 Harrisburg, PA Auth Res Gtd Sub Ser D-2
(FSA Insd)................................. 5.000 12/01/33 2,181,600
1,200 Harrisburg, PA Cap Apprec Nt Ser F Rfdg
(AMBAC Insd)............................... * 09/15/14 799,968
2,600 Philadelphia, PA Auth Indl Ser B (FSA
Insd)...................................... 5.500 10/01/16 2,907,684
2,400 Philadelphia, PA Gas Wks Rev 1998 Gen
Ordinance Fourth Ser (FSA Insd)............ 5.250 08/01/22 2,593,416
1,290 Philadelphia, PA Gas Wks Rev Eighteenth Ser
(AGC Insd)................................. 5.250 08/01/19 1,399,624
4,570 Pittsburgh, PA Ser A (AMBAC Insd).......... 5.500 09/01/16 5,023,070
2,000 Ridley Park, PA Hosp Auth Rev Taylor Hosp
Ser A (Escrowed to Maturity)............... 6.000 12/01/13 2,278,300
-------------
21,064,392
-------------
RHODE ISLAND 0.7%
2,000 Rhode Island Clean Wtr Fin Revolving Fd
Pooled Ln Assn Ser A....................... 5.000 10/01/21 2,144,180
-------------
SOUTH CAROLINA 1.5%
1,000 Chesterfield Cnty, SC Sch Dist (FSA
Insd)...................................... 5.375 03/01/18 1,110,590
2,300 Medical Univ SC Hosp Auth Facs FHA Insd Mtg
Ser A Rfdg (MBIA Insd)..................... 5.250 08/15/25 2,457,481
1,000 South Carolina Jobs Econ Dev Auth Indl Rev
Elec & Gas Co Proj Ser A (AMBAC Insd)...... 5.200 11/01/27 1,049,560
-------------
4,617,631
-------------
SOUTH DAKOTA 0.3%
875 Deadwood, SD Ctf Partn (ACA Insd).......... 6.375 11/01/20 941,946
-------------
</Table>
See Notes to Financial Statements 15
VAN KAMPEN MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
TENNESSEE 1.7%
$2,000 Johnson City, TN Hlth & Ed Fac Brd Hosp Rev
First Mtg Mtn St Hlth Ser A Rfdg
(MBIA Insd)................................ 7.500% 07/01/25 $ 2,520,480
2,500 Memphis, TN (Prerefunded @ 10/01/06)....... 5.250 10/01/14 2,654,850
-------------
5,175,330
-------------
TEXAS 14.5%
2,050 Austin, TX Wtr & Wastewtr Rfdg (MBIA
Insd)...................................... 5.750 05/15/12 2,302,724
1,000 Austin, TX Wtr & Wastewtr Rfdg (MBIA
Insd)...................................... 5.250 11/15/19 1,092,380
300 Brazos Cnty, TX Hlth Fac Dev Oblig Grp..... 5.375 01/01/32 306,765
1,430 Cameron Cnty, TX Ctf Oblig (AMBAC Insd).... 5.750 02/15/15 1,592,033
1,500 Corpus Christi,TX Util Sys Rev Impt Rfdg
(Prerefunded @ 07/15/12) (FSA Insd)........ 5.250 07/15/19 1,629,510
2,000 Fort Worth, TX Wtr & Swr Rev Impt Rfdg..... 5.500 02/15/05 2,008,600
1,000 Harris Cnty, TX Hlth Fac Dev Mem Hermann
Hlthcare Ser A............................. 6.375 06/01/29 1,100,400
2,000 Harris Cnty, TX Perm Impt & Rfdg........... 5.000 10/01/11 2,129,540
4,820 Harris Cnty, TX Toll Rd (Prerefunded @
08/15/09) (AMBAC Insd)..................... * 08/15/18 2,263,279
1,000 Harris Cnty, TX Toll Rd (Prerefunded @
08/15/09) (AMBAC Insd)..................... * 08/15/21 381,980
2,105 Houston, TX Hotel Occupancy Tax & Spl Rev
Convention & Entmt Ser B (AMBAC Insd)...... 5.750 09/01/15 2,400,458
95 Houston, TX Pub Impt Rfdg (FSA Insd)....... 5.750 03/01/15 106,805
905 Houston, TX Pub Impt Rfdg (Prerefunded
09/01/10) (FSA Insd)....................... 5.750 03/01/15 1,026,098
2,000 Houston, TX Wtr & Swr Sys Rev Jr Lien Ser B
Rfdg (Escrowed to Maturity) (FGIC Insd).... 6.250 12/01/05 2,076,080
2,750 Lower CO Riv Auth TX Svc Corp Proj Rfdg
(FGIC Insd)................................ 5.000 05/15/33 2,794,083
1,500 Mesquite, TX Hlth Fac Dev Retirement Fac
Christian A................................ 7.500 02/15/18 1,606,845
1,100 Metropolitan Hlth Fac Dev Corp TX Wilson N
Jones Mem Hosp Proj........................ 7.200 01/01/21 1,109,031
1,000 North Cent TX Hlth Fac Dev Hosp Baylor
Hlthcare Sys Proj Ser A.................... 5.125 05/15/29 1,017,050
1,750 North Cent TX Hlth Fac Dev Hosp Childrens
Med Ctr Dallas (AMBAC Insd)................ 5.250 08/15/32 1,829,363
2,805 Tarrant Regl Wtr Dist TX Wtr Impt Rfdg (FSA
Insd)...................................... 5.250 03/01/19 3,071,840
3,297 Texas Mun Pwr Agy Rev (AMBAC Insd)......... * 09/01/07 3,076,464
228 Texas Mun Pwr Agy Rev (Escrowed to
Maturity) (AMBAC Insd)..................... * 09/01/07 213,816
1,995 Texas St Pub Ppty Fin Corp Rev Mental Hlth
& Retardation Rfdg (FSA Insd).............. 5.500 09/01/13 2,025,344
1,000 Texas Tech Univ Rev Fin Sys Seventh (MBIA
Insd)...................................... 5.000 08/15/25 1,036,610
</Table>
16 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
TEXAS (CONTINUED)
$1,500 Texas Wtr Dev Brd Rev St Revolving Fd Sr
Lien Ser B................................. 5.250% 07/15/17 $ 1,624,245
1,000 Trinity River Auth TX Rev Tarrant Cnty Wtr
Proj Impt & Rfdg (MBIA Insd)............... 5.500 02/01/21 1,112,620
2,500 University TX Rev Fin Sys Ser B............ 5.250 08/15/20 2,724,175
-------------
43,658,138
-------------
UTAH 0.4%
1,000 Salt Lake Cnty, UT College Rev Westminster
College Proj............................... 5.750 10/01/27 1,018,260
105 Utah St Hsg Fin Agy Single Family Mtg Ser B
Class 2 (AMT) (FHA/VA Gtd)................. 6.250 07/01/14 105,541
-------------
1,123,801
-------------
WASHINGTON 5.4%
3,410 Clark Cnty, WA Pub Util Dist Rfdg (FSA
Insd)...................................... 5.500 01/01/08 3,710,626
2,595 Clark Cnty, WA Pub Util Dist Rfdg (FSA
Insd)...................................... 5.500 01/01/09 2,873,418
1,300 Energy Northwest WA Elec Rev Proj No 3 Ser
A Rfdg (FSA Insd).......................... 5.500 07/01/17 1,447,368
4,400 King Cnty, WA Ser B Rfdg (MBIA Insd)....... 5.250 01/01/34 4,611,552
1,000 Spokane, WA Pub Fac Dist Hotel (MBIA
Insd)...................................... 5.750 12/01/20 1,153,720
2,100 Spokane, WA Pub Fac Dist Hotel (MBIA
Insd)...................................... 5.750 12/01/21 2,417,310
-------------
16,213,994
-------------
WEST VIRGINIA 1.3%
3,750 West Virginia Univ Rev Impt Ser C
(FGIC Insd)................................ 5.000 10/01/34 3,854,063
-------------
WISCONSIN 2.1%
2,345 Appleton, WI Wtrwks Rev Rfdg (FGIC Insd)... 5.375 01/01/19 2,587,731
3,500 Milwaukee, WI Redev Auth Rev Milwaukee Pub
Schs (AMBAC Insd).......................... 5.125 08/01/22 3,723,125
-------------
6,310,856
-------------
GUAM 1.0%
2,800 Guam Pwr Auth Rev Ser A (AMBAC Insd)....... 5.250 10/01/34 2,963,968
-------------
</Table>
See Notes to Financial Statements 17
VAN KAMPEN MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2004 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
PUERTO RICO 0.3%
$1,000 Puerto Rico Indl Tourist Ed Med &
Environmental Ctl Fac Fin Auth Higher
Ed Rev..................................... 5.375% 02/01/19 $ 1,043,650
-------------
TOTAL LONG-TERM INVESTMENTS 154.7%
(Cost $433,097,519)......................................................... 464,757,572
SHORT-TERM INVESTMENT 0.4%
(Cost $1,200,000)........................................................... 1,200,000
-------------
TOTAL INVESTMENTS 155.1%
(Cost $434,297,519)......................................................... 465,957,572
LIABILITIES IN EXCESS OF OTHER ASSETS (0.1%)................................. (374,602)
PREFERRED SHARES (INCLUDING ACCRUED DISTRIBUTIONS) (55.0%)................... (165,106,969)
-------------
NET ASSETS APPLICABLE TO COMMON SHARES 100.0%................................ $ 300,476,001
=============
</Table>
Percentages are calculated as a percentage of net assets applicable to common
shares.
* Zero coupon bond
(a) All or a portion of these securities have been physically segregated in
connection with open futures contracts.
(b) Securities purchased on a when-issued or delayed delivery basis.
(c) These securities are restricted and may be resold only in transactions
exempt from registration which are normally those transactions with
qualified institutional buyers. Restricted securities comprise 0.9% of net
assets applicable to common shares.
(d) Security is a "step-up" bond where the coupon increases or steps up at a
predetermined date.
ACA--American Capital Access
AGC--AGC Insured Custody Certificates
AMBAC--AMBAC Indemnity Corp.
AMT--Alternative Minimum Tax
FGIC--Financial Guaranty Insurance Co.
FHA/VA--Federal Housing Administration/Department of Veterans Affairs
FSA--Financial Security Assurance Inc.
GNMA--Government National Mortgage Association
LOC--Letter of Credit
MBIA--Municipal Bond Investors Assurance Corp.
XLCA--XL Capital Assurance Inc.
18 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL INCOME TRUST
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
December 31, 2004 (Unaudited)
<Table>
ASSETS:
Total Investments (Cost $434,297,519)....................... $465,957,572
Cash........................................................ 64,316
Receivables:
Interest.................................................. 6,541,992
Investments Sold.......................................... 30,000
Other....................................................... 7,869
------------
Total Assets............................................ 472,601,749
------------
LIABILITIES:
Payables:
Investments Purchased..................................... 6,237,589
Investment Advisory Fee................................... 216,805
Income Distributions--Common Shares....................... 95,096
Variation Margin on Futures............................... 25,313
Capital Gain Distributions................................ 15,290
Other Affiliates.......................................... 10,689
Trustees' Deferred Compensation and Retirement Plans........ 296,176
Accrued Expenses............................................ 121,821
------------
Total Liabilities....................................... 7,018,779
Preferred Shares (including accrued distributions).......... 165,106,969
------------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $300,476,001
============
NET ASSET VALUE PER COMMON SHARE ($300,476,001 divided by
28,684,985 shares outstanding)............................ $ 10.48
============
NET ASSETS CONSIST OF:
Common Shares ($.01 par value with an unlimited number of
shares authorized, 28,684,985 shares issued and
outstanding).............................................. $ 286,850
Paid in Surplus............................................. 265,829,515
Net Unrealized Appreciation................................. 31,543,905
Accumulated Undistributed Net Investment Income............. 1,902,825
Accumulated Net Realized Gain............................... 912,906
------------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $300,476,001
============
PREFERRED SHARES ($.01 par value, authorized 1,000,000
shares, 330 issued with liquidation preference of $500,000
per share)................................................ $165,000,000
============
NET ASSETS INCLUDING PREFERRED SHARES....................... $465,476,001
============
</Table>
See Notes to Financial Statements 19
VAN KAMPEN MUNICIPAL INCOME TRUST
FINANCIAL STATEMENTS continued
Statement of Operations
For the Six Months Ended December 31, 2004 (Unaudited)
<Table>
INVESTMENT INCOME:
Interest.................................................... $11,045,779
-----------
EXPENSES:
Investment Advisory Fee..................................... 1,361,361
Preferred Share Maintenance................................. 216,797
Trustees' Fees and Related Expenses......................... 49,037
Shareholder Services........................................ 36,739
Legal....................................................... 25,485
Custody..................................................... 13,671
Other....................................................... 108,715
-----------
Total Expenses.......................................... 1,811,805
-----------
NET INVESTMENT INCOME....................................... $ 9,233,974
===========
REALIZED AND UNREALIZED GAIN/LOSS:
Realized Gain/Loss:
Investments............................................... $ 1,075,706
Futures................................................... (257,970)
-----------
Net Realized Gain........................................... 817,736
-----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 19,234,329
End of the Period:
Investments............................................. 31,660,053
Futures................................................. (116,148)
-----------
31,543,905
-----------
Net Unrealized Appreciation During the Period............... 12,309,576
-----------
NET REALIZED AND UNREALIZED GAIN............................ $13,127,312
===========
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS..................... $(1,231,587)
===========
NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM
OPERATIONS................................................ $21,129,699
===========
</Table>
20 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL INCOME TRUST
FINANCIAL STATEMENTS continued
Statements of Changes in Net Assets (Unaudited)
<Table>
<Caption>
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 2004 JUNE 30, 2004
----------------------------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income................................... $ 9,233,974 $ 18,608,395
Net Realized Gain....................................... 817,736 1,489,594
Net Unrealized Appreciation/Depreciation During the
Period................................................ 12,309,576 (19,692,828)
Distributions to Preferred Shareholders:
Net Investment Income................................... (1,231,587) (1,580,017)
------------ ------------
Change in Net Assets Applicable to Common Shares from
Operations............................................ 21,129,699 (1,174,856)
Distributions to Common Shareholders:
Net Investment Income................................. (8,605,002) (17,210,089)
Net Realized Gain..................................... (232,348) (1,325,170)
------------ ------------
NET CHANGE IN NET ASSETS APPLICABLE TO COMMON SHARES
FROM INVESTMENT ACTIVITIES............................ 12,292,349 (19,710,115)
------------ ------------
NET ASSETS APPLICABLE TO COMMON SHARES:
Beginning of the Period................................. 288,183,652 307,893,767
------------ ------------
End of the Period (Including accumulated undistributed
net investment income of $1,902,825 and $2,505,440,
respectively)......................................... $300,476,001 $288,183,652
============ ============
</Table>
See Notes to Financial Statements 21
VAN KAMPEN MUNICIPAL INCOME TRUST
FINANCIAL HIGHLIGHTS (UNAUDITED)
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE
TRUST OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
<Table>
<Caption>
SIX MONTHS
ENDED
DECEMBER 31, ------------------------
2004 2004 2003
----------------------------------------
NET ASSET VALUE, BEGINNING OF THE PERIOD............ $ 10.05 $ 10.73 $ 9.99
---------- ---------- ----------
Net Investment Income............................. .32 .65 .66
Net Realized and Unrealized Gain/Loss............. .46 (.62) .70
Common Share Equivalent of Distributions Paid to
Preferred Shareholders:
Net Investment Income............................. (.04) (.06) (.07)
---------- ---------- ----------
Total from Investment Operations.................... .74 (.03) 1.29
Distributions Paid to Common Shareholders:
Net Investment Income............................. (.30) (.60) (.55)
Net Realized Gain................................. (.01) (.05) -0-
---------- ---------- ----------
NET ASSET VALUE, END OF THE PERIOD.................. $ 10.48 $ 10.05 $ 10.73
========== ========== ==========
Common Share Market Price at End of the Period...... $ 9.04 $ 8.87 $ 9.66
Total Return (a).................................... 5.35%* -1.63% 15.76%
Net Assets Applicable to Common Shares at End of the
Period (In millions).............................. $ 300.5 $ 288.2 $ 307.9
Ratio of Expenses to Average Net Assets Applicable
to Common Shares (b).............................. 1.21% 1.23% 1.21%
Ratio of Net Investment Income to Average Net Assets
Applicable to Common Shares (b)................... 6.15% 6.25% 6.35%
Portfolio Turnover.................................. 11%* 22% 35%
SUPPLEMENTAL RATIOS:
Ratio of Expenses to Average Net Assets Including
Preferred Shares (b).............................. .78% .79% .78%
Ratio of Net Investment Income to Average Net Assets
Applicable to Common Shares (c)................... 5.33% 5.72% 5.67%
SENIOR SECURITIES:
Total Preferred Shares Outstanding.................. 330 330 330
Asset Coverage Per Preferred Share (d).............. $1,410,857 $1,373,451 $1,433,101
Involuntary Liquidating Preference Per Preferred
Share............................................. $ 500,000 $ 500,000 $ 500,000
Average Market Value Per Preferred Share............ $ 500,000 $ 500,000 $ 500,000
</Table>
* Non-Annualized
(a)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.
(b)Ratios do not reflect the effect of dividend payments to preferred
shareholders.
(c)Ratios reflect the effect of dividend payments to preferred shareholders.
(d)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.
(e)As required, effective July 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 June 30, 2002 was to increase net investment income
per share by $.01, decrease 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 .04%. Per shares, supplemental data for
the period prior to June 30, 2002 have not been restated to reflect this
change in presentation.
22
<Table>
<Caption>
YEAR ENDED JUNE 30,
- ----------------------------------------------------------------------------------------------------------
2002(e) 2001 2000 1999 1998 1997 1996 1995
- ----------------------------------------------------------------------------------------------------------
$ 9.62 $ 8.99 $ 9.56 $ 10.26 $ 10.01 $ 9.76 $ 9.76 $ 9.92
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
.70 .75 .81 .84 .89 .92 .94 .96
.31 .66 (.55) (.70) .26 .26 .05 (.06)
(.11) (.23) (.22) (.19) (.21) (.21) (.22) (.22)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
.90 1.18 .04 (.05) .94 .97 .77 .68
(.53) (.55) (.61) (.65) (.69) (.72) (.77) (.84)
-0- -0- -0- -0- -0- -0- -0- -0-
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
$ 9.99 $ 9.62 $ 8.99 $ 9.56 $ 10.26 $ 10.01 $ 9.76 $ 9.76
========== ========== ========== ========== ========== ========== ========== ==========
$ 8.85 $ 8.89 $ 8.6875 $ 9.625 $ 10.875 $ 10.875 $ 9.875 $ 11.125
5.64% 8.88% -3.08% -5.68% 6.85% 18.32% -4.27% 8.59%
$ 286.4 $ 276.0 $ 258.0 $ 274.1 $ 292.3 $ 283.2 $ 273.7 $ 271.1
1.25% 1.27% 1.32% 1.24% 1.23% 1.28% 1.31% 1.33%
6.99% 7.94% 9.06% 8.23% 8.69% 9.25% 9.47% 9.85%
41% 50% 54% 98% 103% 53% 29% 38%
.79% .79% .81% .79% .79% .80% .82% .83%
5.92% 5.50% 6.59% 6.35% 6.64% 7.18% 7.26% 7.56%
330 330 330 330 330 330 330 330
$1,368,316 $1,336,403 $1,281,820 $1,330,642 $1,385,892 $1,358,326 $1,329,390 $1,321,483
$ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000
$ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000
</Table>
See Notes to Financial Statements 23
VAN KAMPEN MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2004 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen Municipal Income Trust (the "Trust") is registered as a diversified,
closed-end management investment company under the Investment Company Act of
1940, as amended. The Trust's investment objective is to provide a high level of
current income exempt from federal income tax, consistent with preservation of
capital. The Trust commenced investment operations on August 26, 1988.
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 is considered
to approximate 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 December 31, 2004, the Trust had $6,237,589 of when-issued
or delayed delivery purchase commitments.
C. INVESTMENT INCOME Interest income is recorded on an accrual basis. Bond
premium is amortized and discount is accreted over the expected life of each
applicable security.
D. FEDERAL INCOME TAXES It is the Trust's policy to comply with the requirements
of Subchapter M 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.
24
VAN KAMPEN MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2004 (UNAUDITED) continued
At December 31, 2004, the cost and related gross unrealized appreciation and
depreciation are as follows:
<Table>
Cost of investments for tax purposes........................ $434,025,211
------------
Gross tax unrealized appreciation........................... $ 31,954,085
Gross tax unrealized depreciation........................... (21,724)
------------
Net tax unrealized appreciation on investments.............. $ 31,932,361
============
</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 to common shareholders. Distributions from net
realized gains for book purposes may include short-term capital gains and gains
on future transactions. All short-term capital gains and a portion of futures
gains are included as ordinary income for tax purposes.
The tax character of distributions paid during the year ended June 30, 2004
was as follows:
<Table>
<Caption>
2004
Distributions paid from:
Ordinary income........................................... $ 145,772
Long-term capital gain.................................... 1,305,092
----------
$1,450,864
==========
</Table>
As of June 30, 2004, the components of distributable earnings on a tax basis
were as follows:
<Table>
Undistributed ordinary income............................... $ 27,509
Undistributed long-term capital gain........................ 177,940
</Table>
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of the Trust's Investment Advisory Agreement, Van Kampen Asset
Management (the "Adviser") provides investment advice and facilities to the
Trust for an annual fee payable monthly of .55% of the average daily net assets
of the Trust. Effective November 1, 2004, the investment advisory fee was
reduced from .60% to .55%.
For the six months ended December 31, 2004, the Trust recognized expenses of
approximately $13,500 representing legal services provided by Skadden, Arps,
Slate, Meagher & Flom LLP, of which a trustee of the Trust is a partner of such
firm and he and his law firm provide legal services as legal counsel to the
Trust.
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
December 31, 2004, the Trust recognized expenses of approximately $24,500
representing Van Kampen Investments Inc.'s or its affiliates' (collectively "Van
Kampen") 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.
25
VAN KAMPEN MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 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
also 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 $52,502,188 and $49,008,240,
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 or agreements.
During the period, the Trust invested in futures contracts, a type of
derivative. A futures contract is an arrangement 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 the 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 futures
commission merchant pursuant to the rules and regulations promulgated under the
1940 Act, as amended, or with its custodian in an account in the broker's name.
This amount is known an 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.
26
VAN KAMPEN MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2004 (UNAUDITED) continued
Transactions in futures contracts for the six months ended December 31,
2004, were as follows:
<Table>
<Caption>
CONTRACTS
Outstanding at June 30, 2004................................ 71
Futures Opened.............................................. 234
Futures Closed.............................................. (149)
----
Outstanding at December 31, 2004............................ 156
====
</Table>
The futures contracts outstanding as of December 31, 2004, and the
description and unrealized appreciation/depreciation are as follows:
<Table>
<Caption>
UNREALIZED
CONTRACTS DEPRECIATION
SHORT CONTRACTS:
U.S. Treasury Notes 10-Year Futures March 2005 (Current
Notional Value of $111,938 per contract).................. 27 $ (27,952)
U.S. Treasury Notes 5-Year Futures March 2005 (Current
Notional Value of $109,531 per contract).................. 129 (88,196)
--- ---------
156 $(116,148)
--- ---------
</Table>
5. PREFERRED SHARES
The Trust has outstanding 330 shares of Rate Adjusted Tax-Exempt Shares
("Rates") in three series of 110 shares each. Dividends are cumulative and the
dividend rate is currently reset every 28 days through an auction process. The
average rate in effect on December 31, 2004 was 1.550%. During the six months
ended December 31, 2004, the rates ranged from 1.156% to 1.900%.
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 Rates are redeemable at the option of the Trust in whole or in part at a
price of $500,000 per share plus accumulated and unpaid dividends. The Trust is
subject to certain asset coverage tests, and the Rates are subject to mandatory
redemption if the tests are not met.
6. INDEMNIFICATIONS
The Trust enters into contracts that contain a variety of indemnifications. The
Trust's maximum exposure under these arrangements is unknown. However, the Trust
has not had prior claims or losses pursuant to these contracts and expects the
risk of loss to be remote.
27
VAN KAMPEN MUNICIPAL INCOME TRUST
BOARD OF TRUSTEES AND IMPORTANT ADDRESSES
BOARD OF TRUSTEES
DAVID C. ARCH
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 REGISTERED
PUBLIC ACCOUNTING FIRM
DELOITTE & TOUCHE LLP
180 North Stetson Avenue
Chicago, Illinois 60601
* "Interested persons" of the Trust, as defined in the Investment Company Act
of 1940, as amended.
28
VAN KAMPEN
AN IMPORTANT NOTICE CONCERNING OUR U.S. PRIVACY POLICY
We are required by federal law to provide you with a copy of our Privacy
Policy annually.
The following Policy applies to current and former individual clients of Van
Kampen Investments Inc., Van Kampen Asset Management, Van Kampen Advisors Inc.,
Van Kampen Funds Inc., Van Kampen Investor Services Inc. and Van Kampen Exchange
Corp., as well as current and former individual investors in Van Kampen mutual
funds, unit investment trusts, and related companies.
This Policy is not applicable to partnerships, corporations, trusts or other
non-individual clients or account holders, nor is this Policy applicable to
individuals who are either beneficiaries of a trust for which we serve as
trustee or participants in an employee benefit plan administered or advised by
us. This Policy is, however, applicable to individuals who select us to be a
custodian of securities or assets in individual retirement accounts, 401(k)
accounts, 529 Educational Savings Accounts, accounts subject to the Uniform
Gifts to Minors Act, or similar accounts.
Please note that we may amend this Policy at any time, and will inform you
of any changes to this Policy as required by law.
WE RESPECT YOUR PRIVACY
We appreciate that you have provided us with your personal financial
information. We strive to maintain the privacy of such information while we help
you achieve your financial objectives. This Policy describes what non-public
personal information we collect about you, why we collect it, and when we may
share it with others.
We hope this Policy will help you understand how we collect and share
non-public personal information that we gather about you. Throughout this
Policy, we refer to the non-public information that personally identifies you or
your accounts as "personal information."
1. WHAT PERSONAL INFORMATION DO WE COLLECT ABOUT YOU?
To serve you better and manage our business, it is important that we collect and
maintain accurate information about you. We may obtain this information from
applications and other forms you submit to us, from your dealings with us, from
consumer reporting agencies, from our Web sites and from third parties and other
sources.
For example:
-- We may collect information such as your name, address, e-mail address,
telephone/fax numbers, assets, income and investment objectives through
applications and other forms you submit to us.
-- We may obtain information about account balances, your use of
account(s) and the types of products and services you prefer to receive
from us through your dealings and transactions with us and other
sources.
-- We may obtain information about your creditworthiness and credit
history from consumer reporting agencies.
-- We may collect background information from and through third-party
vendors to verify representations you have made and to comply with
various regulatory requirements.
-- If you interact with us through our public and private Web sites, we
may collect information that you provide directly through online
communications (such as an e-mail address). We may also collect
information about your Internet service provider, your domain name,
your computer's operating system and Web browser,
(continued on back)
VAN KAMPEN
AN IMPORTANT NOTICE CONCERNING OUR U.S. PRIVACY POLICY continued
your use of our Web sites and your product and service preferences,
through the use of "cookies." "Cookies" recognize your computer each
time you return to one of our sites, and help to improve our sites'
content and personalize your experience on our sites by, for example,
suggesting offerings that may interest you. Please consult the Terms of
Use of these sites for more details on our use of cookies.
2. WHEN DO WE DISCLOSE PERSONAL INFORMATION WE COLLECT ABOUT YOU?
To provide you with the products and services you request, to serve you better
and to manage our business, we may disclose personal information we collect
about you to our affiliated companies and to non-affiliated third parties as
required or permitted by law.
A. INFORMATION WE DISCLOSE TO OUR AFFILIATED COMPANIES. We do not disclose
personal information that we collect about you to our affiliated companies
except to enable them to provide services on our behalf or as otherwise required
or permitted by law.
B. INFORMATION WE DISCLOSE TO THIRD PARTIES. We do not disclose personal
information that we collect about you to non-affiliated third parties except to
enable them to provide services on our behalf, to perform joint marketing
agreements with other financial institutions, or as otherwise required or
permitted by law. For example, some instances where we may disclose information
about you to non-affiliated third parties include: for servicing and processing
transactions, to offer our own products and services, to protect against fraud,
for institutional risk control, to respond to judicial process or to perform
services on our behalf. When we share personal information with these companies,
they are required to limit their use of personal information to the particular
purpose for which it was shared and they are not allowed to share personal
information with others except to fulfill that limited purpose.
3. HOW DO WE PROTECT THE SECURITY AND CONFIDENTIALITY OF PERSONAL INFORMATION WE
COLLECT ABOUT YOU?
We maintain physical, electronic and procedural security measures to help
safeguard the personal information we collect about you. We have internal
policies governing the proper handling of client information. Third parties that
provide support or marketing services on our behalf may also receive personal
information, and we require them to adhere to confidentiality standards with
respect to such information.
Van Kampen Funds Inc.
1 Parkview Plaza, P.O. Box 5555
Oakbrook Terrace, IL 60181-5555
www.vankampen.com
Copyright (C)2004 Van Kampen Funds Inc. All rights reserved.
Member NASD/SIPC. 920, 919, 107
VMT SAR 3/05 RN04-01589P-Y012/04
(VAN KAMPEN INVESTMENTS LOGO)
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. Schedule of Investments.
Please refer to Item #1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
Item 8. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
Not applicable.
Item 9. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 10. 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 11. Exhibits.
(a) Code of Ethics-- Not applicable for semi-annual reports.
(b)(1) A certification for the Principal Executive Officer of the registrant is
attached hereto as part of EX-99.CERT.
(b)(2) A certification for the Principal Financial Officer of the registrant is
attached hereto as part of EX-99.CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Van Kampen Municipal Income Trust
By: /s/ Ronald E. Robison
----------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: February 17, 2005
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: February 17, 2005
By: /s/ James W. Garrett
--------------------
Name: James W. Garrett
Title: Principal Financial Officer
Date: February 17, 2005