UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-02424
Van Kampen Emerging Growth Fund
- --------------------------------------------------------------------------------
(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
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(Name and address of agent for service)
Registrant's telephone number, including area code: 212-762-4000
Date of fiscal year end: 8/31
Date of reporting period: 2/28/05
Item 1. Reports to Shareholders.
The Fund'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
Emerging Growth Fund 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 fund's financial statements and a list of fund investments
as of February 28, 2005.
THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY A PROSPECTUS FOR THE
FUND BEING OFFERED. THE PROSPECTUS CONTAINS INFORMATION ABOUT THE FUND,
INCLUDING THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES. PLEASE
READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.
MARKET FORECASTS PROVIDED IN THIS REPORT MAY NOT NECESSARILY COME TO
PASS. THERE IS NO ASSURANCE THAT A MUTUAL FUND WILL ACHIEVE ITS
INVESTMENT OBJECTIVE. FUNDS ARE SUBJECT TO MARKET RISK, WHICH IS THE
POSSIBILITY THAT THE MARKET VALUES OF SECURITIES OWNED BY THE FUND WILL
DECLINE AND THAT THE VALUE OF FUND SHARES MAY THEREFORE BE LESS THAN WHAT
YOU PAID FOR THEM. ACCORDINGLY, YOU CAN LOSE MONEY INVESTING IN THIS
FUND.
<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 2/28/05
<Table>
<Caption>
A SHARES B SHARES C SHARES I SHARES R SHARES
since since since since since
10/2/70 4/20/92 7/6/93 10/17/00 10/02/02
- -----------------------------------------------------------------------------------------------------------
AVERAGE W/MAX W/MAX W/MAX
ANNUAL W/O 5.75% W/O 5.00% W/O 1.00% W/O W/O
TOTAL SALES SALES SALES SALES SALES SALES SALES SALES
RETURNS CHARGES CHARGE CHARGES CHARGE CHARGES CHARGE CHARGES CHARGES
Since Inception 14.91% 14.72% 11.36% 11.36% 9.52% 9.52% -15.14% 10.18%
10-year 11.34 10.68 10.81 10.81 10.49 10.49 N/A N/A
5-year -16.47 -17.45 -17.11 -17.30 -17.09 -17.09 N/A N/A
1-year 2.90 -3.01 2.13 -2.87 2.14 1.14 3.17 2.63
6 months 11.34 4.94 10.92 5.92 10.91 9.91 11.49 11.17
- -----------------------------------------------------------------------------------------------------------
</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 AND
PRINCIPAL VALUE WILL FLUCTUATE AND FUND SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THEIR ORIGINAL COST.
The returns shown in this report do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund shares.
Performance of share classes will vary due to differences in sales charges and
expenses. Average annual total return with sales charges includes payment of the
maximum sales charge of 5.75 percent for Class A shares, a contingent deferred
sales charge of 5.00 percent for Class B shares (in year one and declining to
zero after year five), a contingent deferred sales charge of 1.00 percent for
Class C shares in year one, and combined Rule 12b-1 fees and service fees of up
to 0.25 percent for Class A shares and up to 1.00 percent for Class B and C
shares. The since inception and 10-year returns for Class B shares reflect the
conversion of Class B shares into Class A shares six years after purchase. The
since inception returns for Class C shares reflect the conversion of Class C
shares into Class A shares ten years after purchase. See footnote 3 in the Notes
to Financial Statements for additional information. Class D shares were renamed
as Class I shares effective September 1, 2004. There has been no change to the
current fee structure as a result of this change. Class I and R Shares are
available for purchase exclusively by investors of tax-exempt retirement plans.
Class I shares include Profit Sharing, 401(k), money purchase pension and
defined benefit plans of Morgan Stanley DW Inc. (Morgan Stanley) or any of its
subsidiaries for the benefit of certain employees of Morgan Stanley and its
subsidiaries and are offered without any sales charges on purchases or sales and
does not include combined 12b-1 fees and service fees. Class R shares include
401(k) plans, 457 plans, defined benefit plans, profit sharing and money
purchase pension plans, non-qualified deferred compensation plans, and
employer-sponsored 403(b) plans. Class R shares are offered without any sales
charges on purchases or sales. The combined Rule 12b-1 fees and service fees for
Class R shares are up to 0.50 percent. Figures shown above assume reinvestment
of all dividends and capital gains.
The Russell 1000 Growth Index is generally representative of the U.S. market for
large-capitalization stocks. It contains securities that growth managers
typically select from the Russell 1000 Index. 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. Source for index
performance: Lipper Inc.
1
Fund Report
FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 28, 2005
Van Kampen Emerging Growth Fund is managed by the Adviser's Multi-Cap Growth
team.(1) Current members include Gary Lewis, Managing Director of the Adviser;
Dudley Brickhouse, Janet Luby, and David Walker, Executive Directors of the
Adviser; and Matthew Hart and Scott Miller, Vice Presidents of the Adviser.
MARKET CONDITIONS
The period did not begin auspiciously for stocks. Sharply rising oil prices,
continued violence in Iraq and concern that the U.S. presidential election could
end in a second consecutive stalemate all weighed on equity prices. These
factors overshadowed the increasingly strong fundamentals of many technology and
other growth companies. Conditions improved markedly beginning in late October
as oil prices retreated from their highs and the November election ended
decisively. Against this backdrop, stocks rallied to end the year.
The situation changed again early in 2005. The combination of a sudden spike in
oil prices--by period end they were close to their October highs--and concerns
about possible violence around the January 30 Iraqi parliamentary election
caused the stock market to give back some of its recent gains. Iraq's election,
however, went more smoothly than expected, and equities again performed well in
February, making up nearly all of their January losses.
PERFORMANCE ANALYSIS
Van Kampen Emerging Growth Fund returned 11.34 percent (Class A shares, assuming
no front-end sales charge was paid) during the six-month period ending February
28, 2005. In comparison, the fund's benchmark, the Russell 1000 Growth Index,
returned 7.67 percent.
TOTAL RETURN FOR THE SIX-MONTH PERIOD ENDING FEBRUARY 28, 2005
<Table>
<Caption>
- ---------------------------------------------------------------------------
RUSSELL
1000(R)
CLASS A CLASS B CLASS C CLASS I CLASS R GROWTH INDEX
11.34% 10.92% 10.91% 11.49% 11.17% 7.67%
- ---------------------------------------------------------------------------
</Table>
THE PERFORMANCE FOR THE FIVE SHARE CLASSES VARIES BECAUSE EACH HAS DIFFERENT
EXPENSES. THE FUND'S TOTAL RETURN FIGURES ASSUME THE REINVESTMENT OF ALL
DISTRIBUTIONS, BUT DO NOT REFLECT THE DEDUCTION OF ANY APPLICABLE SALES CHARGES.
SUCH COSTS WOULD LOWER PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE
RESULTS. SEE PERFORMANCE SUMMARY FOR STANDARDIZED PERFORMANCE INFORMATION AND
INDEX DEFINITIONS.
(1)Team members may change without notice at any time.
2
One of the leading contributors to the fund's performance during the past six
months was the technology sector, where the fund benefited from strong stock
selection in the hardware and semiconductor industries, as demand for consumer
electronics products was very strong and supply remained controlled.
The fund also benefited from significantly overweighting the energy sector. As a
group, energy stocks performed very well as oil prices rose sharply early and
late in the period. We believed that the sector's fundamentals were very strong
because of a continued large imbalance between supply and demand and that high
oil prices provided energy companies with relatively predictable future
earnings. Finally, the funds underweighted position in pharmaceuticals added to
performance during the period, as patent expirations and challenges, recalls and
safety issues surrounding several popular drugs led to significantly negative
returns for the group overall in 2004.
On the negative side, although medtech stocks performed fairly well on the
whole, the fund was underweighted relative to the benchmark. In addition, growth
rates in the Internet sector fell, as successful companies in the space grew
larger and decided to invest more heavily in emerging markets. This ratcheting
down of growth had a negative impact on valuations and fund performance.
We are optimistic about the potential for growth stocks. Many companies have
substantial amounts of cash on their balance sheets, and they may use the cash
to buy back shares of stock, raise dividends, increase capital investment or
complete mergers and acquisitions to enhance shareholder value. All of these
trends are positive for stocks in general, but particularly so for growth
stocks.
Typically, at this stage of a market cycle, we would expect large-cap growth
stocks to be leading the market, but they have continued to lag value stocks as
well as small- and mid-cap-growth stocks. We are hopeful that if this trend
reverses it could create a more favorable environment for the fund. Regardless
of the environment, we remain true to our investment discipline. We seek
companies that show accelerating growth or more growth than the overall economy,
and that have rising earnings expectations or rising valuations.
There is no guarantee the security sectors mentioned will continue to perform
well or be held by the fund in the future.
3
<Table>
<Caption>
TOP TEN HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF FEBRUARY 28, 2005
Apple Computer, Inc. 2.3%
Johnson & Johnson 2.3
UnitedHealth Group, Inc. 2.0
Exxon Mobil Corp. 1.6
Starwood Hotels & Resorts Worldwide, Inc. 1.5
Dell, Inc. 1.4
Adobe Systems, Inc. 1.3
Microsoft Corp. 1.3
FedEx Corp. 1.3
Marvell Technology Group, Ltd. 1.3
<Caption>
INDUSTRIES AS A PERCENTAGE OF NET ASSETS AS OF FEBRUARY 28, 2005
Pharmaceuticals 5.6%
Semiconductors 5.0
Systems Software 4.8
Computer Hardware 3.7
Managed Health Care 3.6
Health Care Equipment 3.6
Communications Equipment 3.4
Biotechnology 3.1
Aerospace & Defense 2.8
Industrial Conglomerates 2.6
Internet Software & Services 2.5
Apparel Retail 2.4
Hotels 2.4
Packaged Foods 2.3
Oil & Gas Exploration & Production 2.2
Restaurants 2.0
Diversified Banks 1.9
Computer Storage & Peripherals 1.9
Oil & Gas Drilling 1.9
Diversified Chemicals 1.8
Movies & Entertainment 1.7
Consumer Finance 1.7
Health Care Services 1.7
Integrated Oil & Gas 1.6
Homebuilding 1.6
Semiconductor Equipment 1.6
Oil & Gas Equipment & Services 1.6
Railroads 1.5
IT Consulting & Other Services 1.5
Investment Banking & Brokerage 1.3
Department Stores 1.3
Air Freight & Couriers 1.3
Application Software 1.3
Publishing 1.2
Industrial Machinery 1.1
Home Improvement Retail 1.0
Casinos & Gaming 1.0
Steel 0.9
Footwear 0.8
Electrical Components & Equipment 0.8
</Table>
<Table>
(continued on next page)
</Table>
4
<Table>
<Caption>
INDUSTRIES AS A PERCENTAGE OF NET ASSETS AS OF FEBRUARY 28, 2005
(continued from previous page)
Hypermarkets & Super Centers 0.8%
Apparel & Accessories 0.8
Fertilizers & Agricultural Chemicals 0.8
Internet Retail 0.7
Building Products 0.7
Household Appliances 0.7
Other Diversified Financial Services 0.7
Personal Products 0.6
Agricultural Products 0.6
Electric Utilities 0.6
Diversified Metals & Mining 0.6
Consumer Electronics 0.6
Multi-line Insurance 0.6
Broadcasting & Cable TV 0.6
Asset Management & Custody Banks 0.5
Specialty Stores 0.5
Specialized Finance 0.5
Distillers & Vintners 0.5
Property & Casualty 0.3
Health Care Supplies 0.3
Integrated Telecommunication Services 0.3
Data Processing & Outsourcing Services 0.2
Thrifts & Mortgage Finance 0.0
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Total Long-Term Investments 98.5%
Short Term Investments 1.9
Liabilities in Excess of Other Assets -0.4
-----
Net Assets 100.0%
=====
</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 industries shown above. All percentages are as a percentage of
net assets. 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 fund provides a complete schedule of portfolio holdings
in its semiannual and annual reports within 60 days of the end of the
fund'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 fund 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 fund files a
complete schedule of portfolio holdings with the SEC for the fund'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.
You may obtain copies of a fund's fiscal quarter filings by contacting
Van Kampen Client Relations at 1-800-847-2424.
6
HOUSEHOLDING NOTICE
To reduce fund expenses, the fund attempts to eliminate duplicate
mailings to the same address. The fund delivers a single copy of certain
shareholder documents to investors who share an address, even if the
accounts are registered under different names. The fund's prospectuses
and shareholder reports (including annual privacy notices) will be
delivered to you in this manner indefinitely unless you instruct us
otherwise. You can request multiple copies of these documents by either
calling 1-800-341-2911 or writing to Van Kampen Investor Services at 1
Parkview Plaza, P.O. Box 5555, Oakbrook Terrace, IL 60181. Once Investor
Services has received your instructions, we will begin sending individual
copies for each account within 30 days.
PROXY VOTING POLICIES AND PROCEDURES AND PROXY VOTING RECORD
The fund's policies and procedures with respect to the voting of proxies
relating to the fund's portfolio securities and information on how the
fund 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 website at
www.vankampen.com. This information is also available on the Securities
and Exchange Commission's website at http://www.sec.gov
7
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments of Class A Shares
and contingent deferred sales charge on redemptions of Class B and C Shares; and
(2) ongoing costs, including management fees; distribution and service (12b-1)
fees; and other Fund expenses. This example is intended to help you understand
your ongoing cost (in dollars) of investing in the Fund and to compare these
costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period 09/01/04 - 02/28/05.
ACTUAL EXPENSE
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
expenses based on the Fund's actual expense ratio and an assumed rate of return
of 5% per year before expenses, which is not the Fund's actual return. The
hypothetical account values and expenses may not be used to estimate the actual
ending account balance or expenses you paid for the period. You may use this
information to compare the ongoing cost of investing in the Fund and other
funds. To do so, compare this 5% hypothetical example with the 5% hypothetical
examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) or contingent deferred sales charges. Therefore, the second line
of the table is useful in comparing ongoing costs only, and will not help you
determine the relative total costs of owning different funds. In addition, if
these transactional costs were included, your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
--------------------------------------------------
9/1/04 2/28/05 09/1/04-02/28/05
Class A
Actual $1,000.00 $1,113.36 $5.82
Hypothetical 1,000.00 1,019.29 5.56
(5% annual return before expenses)
Class B
Actual 1,000.00 1,109.18 9.78
Hypothetical 1,000.00 1,015.49 9.34
(5% annual return before expenses)
Class C
Actual 1,000.00 1,109.08 9.78
Hypothetical 1,000.00 1,015.49 9.34
(5% annual return before expenses)
Class I
Actual 1,000.00 1,114.88 4.51
Hypothetical 1,000.00 1,020.49 4.31
(5% annual return before expenses)
Class R
Actual 1,000.00 1,111.70 7.12
Hypothetical 1,000.00 1,018.09 6.81
(5% annual return before expenses)
</Table>
* Expenses are equal to the Fund's annualized expense ratio of 1.11%, 1.87%,
and 1.87%, and 0.86%,and 1.36% for Class A, B, C, I and R Shares,
respectively, multiplied by the average account value over the period,
multiplied by 181/365 (to reflect the one-half year period).
Assumes all dividends and distributions were reinvested.
8
VAN KAMPEN EMERGING GROWTH FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 28, 2005 (UNAUDITED)
<Table>
<Caption>
NUMBER OF
DESCRIPTION SHARES VALUE
- ------------------------------------------------------------------------------------------
COMMON STOCKS 98.5%
AEROSPACE & DEFENSE 2.8%
L-3 Communications Holdings, Inc. .......................... 500,000 $ 36,050,000
Lockheed Martin Corp. ...................................... 600,000 35,532,000
Precision Castparts Corp. .................................. 300,000 22,578,000
Rockwell Collins, Inc. ..................................... 400,000 18,420,000
United Technologies Corp. .................................. 500,000 49,940,000
--------------
162,520,000
--------------
AGRICULTURAL PRODUCTS 0.6%
Archer-Daniels-Midland Co. ................................. 1,500,000 36,150,000
--------------
AIR FREIGHT & COURIERS 1.3%
FedEx Corp. ................................................ 750,000 73,335,000
--------------
APPAREL & ACCESSORIES 0.8%
Coach, Inc. (a)............................................. 800,000 44,424,000
--------------
APPAREL RETAIL 2.4%
Abercrombie & Fitch Co., Class A............................ 1,000,000 53,700,000
American Eagle Outfitters, Inc. ............................ 700,000 37,891,000
Chico's FAS, Inc. (a)....................................... 1,000,000 29,450,000
Urban Outfitters, Inc. (a).................................. 500,000 20,795,000
--------------
141,836,000
--------------
APPLICATION SOFTWARE 1.3%
Autodesk, Inc. ............................................. 2,000,000 59,440,000
Macromedia, Inc. (a)........................................ 400,000 13,556,000
--------------
72,996,000
--------------
ASSET MANAGEMENT & CUSTODY BANKS 0.5%
Franklin Resources, Inc. ................................... 450,000 31,585,500
--------------
BIOTECHNOLOGY 3.1%
Amgen, Inc. (a)............................................. 1,100,000 67,771,000
Biogen Idec, Inc. (a)....................................... 500,000 19,325,000
Cephalon, Inc. (a).......................................... 350,000 17,174,500
Genzyme Corp. (a)........................................... 750,000 42,067,500
Gilead Sciences, Inc. (a)................................... 1,000,000 34,550,000
--------------
180,888,000
--------------
BROADCASTING & CABLE TV 0.6%
XM Satellite Radio Holdings, Inc., Class A (a).............. 1,000,000 32,960,000
--------------
BUILDING PRODUCTS 0.7%
Masco Corp. ................................................ 1,250,000 42,150,000
--------------
CASINOS & GAMING 1.0%
Las Vegas Sands Corp. (a)................................... 417,700 20,007,830
Wynn Resorts, Ltd. (a)...................................... 500,000 35,785,000
--------------
55,792,830
--------------
</Table>
See Notes to Financial Statements 9
VAN KAMPEN EMERGING GROWTH FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 28, 2005 (UNAUDITED) continued
<Table>
<Caption>
NUMBER OF
DESCRIPTION SHARES VALUE
- ------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT 3.4%
Comverse Technology, Inc. (a)............................... 1,500,000 $ 34,815,000
F5 Networks, Inc. (a)....................................... 500,000 27,545,000
Harris Corp. ............................................... 400,000 26,680,000
Juniper Networks, Inc. (a).................................. 1,500,000 32,310,000
Nokia Corp.--ADR (Finland).................................. 3,000,000 48,420,000
QUALCOMM, Inc. ............................................. 850,000 30,693,500
--------------
200,463,500
--------------
COMPUTER HARDWARE 3.7%
Apple Computer, Inc. (a).................................... 3,000,000 134,580,000
Dell, Inc. (a).............................................. 2,000,000 80,180,000
--------------
214,760,000
--------------
COMPUTER STORAGE & PERIPHERALS 1.9%
Avid Technology, Inc. (a)................................... 250,000 16,725,000
EMC Corp. (a)............................................... 3,500,000 44,310,000
Network Appliance, Inc. (a)................................. 1,000,000 30,010,000
QLogic Corp. (a)............................................ 500,000 20,145,000
--------------
111,190,000
--------------
CONSUMER ELECTRONICS 0.6%
Harman International Industries, Inc. ...................... 300,000 33,651,000
--------------
CONSUMER FINANCE 1.7%
American Express Co. ....................................... 1,250,000 67,687,500
Capital One Financial Corp. ................................ 400,000 30,672,000
--------------
98,359,500
--------------
DATA PROCESSING & OUTSOURCING SERVICES 0.2%
CheckFree Corp. (a)......................................... 350,000 13,489,000
--------------
DEPARTMENT STORES 1.3%
J.C. Penney Co., Inc. ...................................... 1,000,000 44,490,000
Nordstrom, Inc. ............................................ 600,000 32,256,000
--------------
76,746,000
--------------
DISTILLERS & VINTNERS 0.5%
Constellation Brands, Inc., Class A (a)..................... 500,000 26,765,000
--------------
DIVERSIFIED BANKS 1.9%
Bank of America Corp. ...................................... 1,250,000 58,312,500
Wachovia Corp. ............................................. 1,000,000 53,010,000
--------------
111,322,500
--------------
DIVERSIFIED CHEMICALS 1.8%
Dow Chemical Co. ........................................... 1,250,000 68,937,500
Lyondell Chemical Co. ...................................... 1,000,000 33,850,000
--------------
102,787,500
--------------
DIVERSIFIED METALS & MINING 0.6%
Peabody Energy Corp. ....................................... 350,000 33,985,000
--------------
</Table>
10 See Notes to Financial Statements
VAN KAMPEN EMERGING GROWTH FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 28, 2005 (UNAUDITED) continued
<Table>
<Caption>
NUMBER OF
DESCRIPTION SHARES VALUE
- ------------------------------------------------------------------------------------------
ELECTRIC UTILITIES 0.6%
Exelon Corp. ............................................... 750,000 $ 34,020,000
--------------
ELECTRICAL COMPONENTS & EQUIPMENT 0.8%
Rockwell Automation, Inc. .................................. 750,000 46,612,500
--------------
FERTILIZERS & AGRICULTURAL CHEMICALS 0.8%
Monsanto Co. ............................................... 750,000 44,085,000
--------------
FOOTWEAR 0.8%
Nike, Inc., Class B......................................... 550,000 47,822,500
--------------
HEALTH CARE EQUIPMENT 3.6%
Becton, Dickinson & Co. .................................... 750,000 44,902,500
Biomet, Inc. ............................................... 750,000 31,665,000
C.R. Bard, Inc. ............................................ 600,000 39,900,000
Cooper Co., Inc. ........................................... 200,000 16,470,000
Cytyc Corp. (a)............................................. 700,000 15,960,000
Kinetic Concepts, Inc. (a).................................. 350,000 22,830,500
St. Jude Medical, Inc. (a).................................. 1,000,000 39,100,000
--------------
210,828,000
--------------
HEALTH CARE SERVICES 1.7%
Caremark Rx, Inc. (a)....................................... 1,250,000 47,850,000
Quest Diagnostics, Inc. .................................... 500,000 49,700,000
--------------
97,550,000
--------------
HEALTH CARE SUPPLIES 0.3%
Affymetrix, Inc. (a)........................................ 350,000 14,955,500
--------------
HOME IMPROVEMENT RETAIL 1.0%
Home Depot, Inc. ........................................... 1,500,000 60,030,000
--------------
HOMEBUILDING 1.6%
KB Home..................................................... 300,000 37,440,000
Toll Brothers, Inc. (a)..................................... 650,000 57,232,500
--------------
94,672,500
--------------
HOTELS 2.4%
Carnival Corp. ............................................. 1,000,000 54,380,000
Starwood Hotels & Resorts Worldwide, Inc. .................. 1,500,000 85,860,000
--------------
140,240,000
--------------
HOUSEHOLD APPLIANCES 0.7%
Black & Decker Corp. ....................................... 500,000 41,460,000
--------------
HYPERMARKETS & SUPER CENTERS 0.8%
Costco Wholesale Corp. ..................................... 1,000,000 46,590,000
--------------
</Table>
See Notes to Financial Statements 11
VAN KAMPEN EMERGING GROWTH FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 28, 2005 (UNAUDITED) continued
<Table>
<Caption>
NUMBER OF
DESCRIPTION SHARES VALUE
- ------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES 2.6%
General Electric Co. ....................................... 1,750,000 $ 61,600,000
Textron, Inc. .............................................. 500,000 38,675,000
Tyco International, Ltd. (Bermuda).......................... 1,500,000 50,220,000
--------------
150,495,000
--------------
INDUSTRIAL MACHINERY 1.1%
Danaher Corp. .............................................. 550,000 29,793,500
Eaton Corp. ................................................ 500,000 34,875,000
--------------
64,668,500
--------------
INTEGRATED OIL & GAS 1.6%
Exxon Mobil Corp. .......................................... 1,500,000 94,965,000
--------------
INTEGRATED TELECOMMUNICATION SERVICES 0.3%
Amdocs, Ltd. (Guernsey) (a)................................. 500,000 14,675,000
--------------
INTERNET RETAIL 0.7%
eBay, Inc. (a).............................................. 1,000,000 42,840,000
--------------
INTERNET SOFTWARE & SERVICES 2.5%
Google, Inc., Class A (a)................................... 300,000 56,397,000
VeriSign, Inc. (a).......................................... 1,000,000 27,420,000
Yahoo!, Inc. (a)............................................ 2,000,000 64,540,000
--------------
148,357,000
--------------
INVESTMENT BANKING & BROKERAGE 1.3%
Bear Stearns Co., Inc. ..................................... 500,000 49,750,000
Goldman Sachs Group, Inc. .................................. 250,000 27,200,000
--------------
76,950,000
--------------
IT CONSULTING & OTHER SERVICES 1.5%
Cognizant Technology Solutions Corp., Class A (a)........... 1,000,000 47,230,000
Infosys Technologies, Ltd.--ADR (India)..................... 500,000 38,125,000
--------------
85,355,000
--------------
MANAGED HEALTH CARE 3.6%
Aetna, Inc. ................................................ 450,000 65,709,000
Pacificare Health Systems (a)............................... 500,000 31,740,000
UnitedHealth Group, Inc. ................................... 1,250,000 113,950,000
--------------
211,399,000
--------------
MOVIES & ENTERTAINMENT 1.7%
News Corp., Ltd., Class B................................... 2,600,000 44,746,000
Walt Disney Co. ............................................ 2,000,000 55,880,000
--------------
100,626,000
--------------
MULTI-LINE INSURANCE 0.6%
American International Group, Inc. ......................... 500,000 33,400,000
--------------
</Table>
12 See Notes to Financial Statements
VAN KAMPEN EMERGING GROWTH FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 28, 2005 (UNAUDITED) continued
<Table>
<Caption>
NUMBER OF
DESCRIPTION SHARES VALUE
- ------------------------------------------------------------------------------------------
OIL & GAS DRILLING 1.9%
Diamond Offshore Drilling, Inc. ............................ 750,000 $ 37,125,000
ENSCO International, Inc. .................................. 750,000 30,210,000
Noble Corp. ................................................ 750,000 42,802,500
--------------
110,137,500
--------------
OIL & GAS EQUIPMENT & SERVICES 1.6%
Baker Hughes, Inc. ......................................... 1,000,000 47,280,000
Weatherford International, Ltd. (a)......................... 750,000 44,707,500
--------------
91,987,500
--------------
OIL & GAS EXPLORATION & PRODUCTION 2.2%
Burlington Resources, Inc. ................................. 1,250,000 62,037,500
Devon Energy Corp. ......................................... 750,000 35,092,500
Ultra Petroleum Corp. (a)................................... 500,000 28,175,000
--------------
125,305,000
--------------
OTHER DIVERSIFIED FINANCIAL SERVICES 0.7%
Chicago Mercantile Exchange................................. 200,000 41,324,000
--------------
PACKAGED FOODS 2.3%
General Mills, Inc. ........................................ 750,000 39,277,500
Hershey Foods Corp. ........................................ 800,000 50,400,000
Kellogg Co. ................................................ 1,000,000 44,000,000
--------------
133,677,500
--------------
PERSONAL PRODUCTS 0.6%
Gillette Co. ............................................... 750,000 37,687,500
--------------
PHARMACEUTICALS 5.6%
GlaxoSmithKline plc--ADR (United Kingdom)................... 650,000 31,343,000
Johnson & Johnson........................................... 2,000,000 131,200,000
Novartis AG--ADR (Switzerland).............................. 1,100,000 54,967,000
Roche Holdings, Inc.--ADR (Switzerland)..................... 850,000 44,958,965
Teva Pharmaceutical Industries, Ltd.--ADR (Israel).......... 1,100,000 33,121,000
Wyeth....................................................... 750,000 30,615,000
--------------
326,204,965
--------------
PROPERTY & CASUALTY 0.3%
ACE, Ltd. (Bermuda)......................................... 350,000 15,561,000
--------------
PUBLISHING 1.2%
Getty Images, Inc. (a)...................................... 450,000 32,103,000
McGraw-Hill Co., Inc. ...................................... 400,000 36,740,000
--------------
68,843,000
--------------
RAILROADS 1.5%
Burlington Northern Santa Fe Corp. ......................... 1,000,000 50,270,000
Norfolk Southern Corp. ..................................... 1,000,000 35,890,000
--------------
86,160,000
--------------
</Table>
See Notes to Financial Statements 13
VAN KAMPEN EMERGING GROWTH FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 28, 2005 (UNAUDITED) continued
<Table>
<Caption>
NUMBER OF
DESCRIPTION SHARES VALUE
- ------------------------------------------------------------------------------------------
RESTAURANTS 2.0%
McDonald's Corp. ........................................... 1,500,000 $ 49,620,000
Starbucks Corp. (a)......................................... 600,000 31,086,000
Yum! Brands, Inc. .......................................... 700,000 34,146,000
--------------
114,852,000
--------------
SEMICONDUCTOR EQUIPMENT 1.6%
Applied Materials, Inc. (a)................................. 3,500,000 61,250,000
Lam Research Corp. (a)...................................... 1,000,000 31,440,000
--------------
92,690,000
--------------
SEMICONDUCTORS 5.0%
Broadcom Corp., Class A (a)................................. 2,000,000 64,500,000
Intel Corp. ................................................ 3,000,000 71,940,000
Marvell Technology Group, Ltd. (Bermuda) (a)................ 2,000,000 73,180,000
NVIDIA Corp. (a)............................................ 1,000,000 28,990,000
Texas Instruments, Inc. .................................... 2,000,000 52,940,000
--------------
291,550,000
--------------
SPECIALIZED FINANCE 0.5%
CIT Group, Inc. ............................................ 750,000 30,262,500
--------------
SPECIALTY STORES 0.5%
Staples, Inc. .............................................. 1,000,000 31,520,000
--------------
STEEL 0.9%
Nucor Corp. ................................................ 800,000 49,872,000
--------------
SYSTEMS SOFTWARE 4.8%
Adobe Systems, Inc. ........................................ 1,250,000 77,187,500
Computer Associates International, Inc. .................... 6,656 180,311
McAfee, Inc. (a)............................................ 1,250,000 28,912,500
Microsoft Corp. ............................................ 3,000,000 75,540,000
NCR Corp. (a)............................................... 1,000,000 38,990,000
Oracle Corp. (a)............................................ 4,500,000 58,095,000
--------------
278,905,311
--------------
THRIFTS & MORTGAGE FINANCE 0.0%
Countrywide Financial Corp. ................................ 1 35
--------------
</Table>
14 See Notes to Financial Statements
VAN KAMPEN EMERGING GROWTH FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 28, 2005 (UNAUDITED) continued
<Table>
<Caption>
DESCRIPTION VALUE
- ------------------------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS 98.5%
(Cost $4,830,445,127).................................................. $5,727,292,641
REPURCHASE AGREEMENT 1.9%
Bank of America Securities LLC ($111,670,000 par collateralized by U.S.
Government obligations in a pooled cash account, interest rate of 2.57%,
dated 02/28/05, to be sold on 03/01/05 at $111,677,972)
(Cost $111,670,000)...................................................... 111,670,000
--------------
TOTAL INVESTMENTS 100.4%
(Cost $4,942,115,127).................................................. 5,838,962,641
LIABILITIES IN EXCESS OF OTHER ASSETS (0.4%)............................ (22,988,398)
--------------
NET ASSETS 100.0%....................................................... $5,815,974,243
==============
</Table>
Percentages are calculated as a percentage of net assets.
(a) Non-income producing security as this stock currently does not declare
dividends.
ADR--American Depositary Receipt
See Notes to Financial Statements 15
VAN KAMPEN EMERGING GROWTH FUND
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
February 28, 2005 (Unaudited)
<Table>
ASSETS:
Total Investments (Cost $4,942,115,127)..................... $ 5,838,962,641
Receivables:
Investments Sold........................................... 49,845,329
Fund Shares Sold........................................... 13,772,068
Dividends.................................................. 6,163,233
Interest................................................... 7,972
Other....................................................... 522,533
---------------
Total Assets............................................. 5,909,273,776
---------------
LIABILITIES:
Payables:
Fund Shares Repurchased.................................... 80,934,055
Distributor and Affiliates................................. 5,393,343
Investment Advisory Fee.................................... 2,004,609
Investments Purchased...................................... 1,627,268
Custodian Bank............................................. 728,082
Accrued Expenses............................................ 2,022,097
Trustees' Deferred Compensation and Retirement Plans........ 590,079
---------------
Total Liabilities........................................ 93,299,533
---------------
NET ASSETS.................................................. $ 5,815,974,243
===============
NET ASSETS CONSIST OF:
Capital (Par value of $.01 per share with an unlimited
number of shares authorized)............................... $11,116,185,676
Net Unrealized Appreciation................................. 896,847,514
Accumulated Net Investment Loss............................. (449,512)
Accumulated Net Realized Loss............................... (6,196,609,435)
---------------
NET ASSETS.................................................. $ 5,815,974,243
===============
NET ASSET VALUE PER COMMON SHARE:
Class A Shares:
Net asset value and redemption price per share (Based on
net assets of $3,453,935,631 and 90,866,269 shares of
beneficial interest issued and outstanding).............. $ 38.01
Maximum sales charge (5.75%* of offering price).......... 2.32
---------------
Maximum offering price to public......................... $ 40.33
===============
Class B Shares:
Net asset value and offering price per share (Based on
net assets of $1,930,057,705 and 59,192,928 shares of
beneficial interest issued and outstanding).............. $ 32.61
===============
Class C Shares:
Net asset value and offering price per share (Based on
net assets of $380,790,911 and 11,384,720 shares of
beneficial interest issued and outstanding).............. $ 33.45
===============
Class I Shares:
Net asset value and offering price per share (Based on
net assets of $32,578,536 and 847,829 shares of
beneficial interest issued and outstanding).............. $ 38.43
===============
Class R Shares:
Net asset value and offering price per share (Based on
net assets of $18,611,460 and 492,102 shares of
beneficial interest issued and outstanding).............. $ 37.82
===============
</Table>
* On sales of $50,000 or more, the sales charge will be reduced.
16 See Notes to Financial Statements
VAN KAMPEN EMERGING GROWTH FUND
FINANCIAL STATEMENTS continued
Statement of Operations
For the Six Months Ended February 28, 2005 (Unaudited)
<Table>
INVESTMENT INCOME:
Dividends (Net of foreign withholding taxes of $165,393).... $ 41,272,908
Interest.................................................... 1,688,022
------------
Total Income............................................ 42,960,930
------------
EXPENSES:
Distribution (12b-1) and Service Fees (Attributed to Classes
A, B, C, I and R of $4,435,540, $10,027,782, $2,069,288,
$0 and $48,023, respectively)............................. 16,580,633
Investment Advisory Fee..................................... 13,427,148
Shareholder Services........................................ 10,997,199
Custody..................................................... 208,677
Legal....................................................... 170,694
Trustees' Fees and Related Expenses......................... 39,392
Other....................................................... 1,441,382
------------
Total Expenses.......................................... 42,865,125
Less Credits Earned on Cash Balances.................... 30,942
------------
Net Expenses............................................ 42,834,183
------------
NET INVESTMENT INCOME....................................... $ 126,747
============
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Gain........................................... $188,971,660
------------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 430,993,438
End of the Period......................................... 896,847,514
------------
Net Unrealized Appreciation During the Period............... 465,854,076
------------
NET REALIZED AND UNREALIZED GAIN............................ $654,825,736
============
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $654,952,483
============
</Table>
See Notes to Financial Statements 17
VAN KAMPEN EMERGING GROWTH FUND
FINANCIAL STATEMENTS continued
Statements of Changes in Net Assets (Unaudited)
<Table>
<Caption>
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 2005 AUGUST 31, 2004
-----------------------------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income/Loss.............................. $ 126,747 $ (54,314,283)
Net Realized Gain....................................... 188,971,660 1,183,108,779
Net Unrealized Appreciation/Depreciation During the
Period................................................ 465,854,076 (1,089,322,142)
--------------- ---------------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES..... 654,952,483 39,472,354
--------------- ---------------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold............................... 324,756,572 910,766,850
Cost of Shares Repurchased.............................. (1,319,971,492) (1,967,564,917)
--------------- ---------------
NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS...... (995,214,920) (1,056,798,067)
--------------- ---------------
TOTAL DECREASE IN NET ASSETS............................ (340,262,437) (1,017,325,713)
NET ASSETS:
Beginning of the Period................................. 6,156,236,680 7,173,562,393
--------------- ---------------
End of the Period (Including accumulated net investment
loss of $449,512 and $576,259, respectively).......... $ 5,815,974,243 $ 6,156,236,680
=============== ===============
</Table>
18 See Notes to Financial Statements
VAN KAMPEN EMERGING GROWTH FUND
FINANCIAL HIGHLIGHTS (UNAUDITED)
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE SHARE OF THE FUND
OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED AUGUST 31,
CLASS A SHARES FEB. 28, -------------------------------------------------------------------------
2005 2004 2003 2002 2001 2000
---------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF THE PERIOD........... $ 34.14 $ 34.08 $ 30.96 $ 43.18 $ 109.19 $ 60.00
-------- -------- -------- -------- -------- ---------
Net Investment
Income/Loss........... .06(a) (.16)(a) (.18)(a) (.17)(a) .03(a) (.32)(a)
Net Realized and
Unrealized
Gain/Loss............. 3.81 .22 3.30 (12.05) (51.18) 58.81
-------- -------- -------- -------- -------- ---------
Total from Investment
Operations.............. 3.87 .06 3.12 (12.22) (51.15) 58.49
Less Distributions from
Net Realized Gain....... -0- -0- -0- -0- 14.86 9.30
-------- -------- -------- -------- -------- ---------
NET ASSET VALUE, END OF
THE PERIOD.............. $ 38.01 $ 34.14 $ 34.08 $ 30.96 $ 43.18 $ 109.19
======== ======== ======== ======== ======== =========
Total Return (b).......... 11.34%* 0.18% 10.08% -28.30% -51.22% 104.41%
Net Assets at End of the
Period (In millions).... $3,453.9 $3,663.9 $4,222.8 $4,310.2 $6,251.4 $11,527.6
Ratio of Expenses to
Average Net Assets...... 1.11% 1.08% 1.15% 1.06% .93% .87%
Ratio of Net Investment
Income/Loss to Average
Net Assets.............. .31% (.46%) (.61%) (.44%) .04% (.35%)
Portfolio Turnover........ 57%* 177% 180% 230% 148% 110%
</Table>
* Non-Annualized
(a) Based on average shares outstanding.
(b) Assumes reinvestment of all distributions for the period and does not
include payment of the maximum sales charge of 5.75% or contingent deferred
sales charge (CDSC). On purchases of $1 million or more, a CDSC of 1% may be
imposed on certain redemptions made within eighteen months of purchases.
With respect to shares purchased prior to December 1, 2004, a CDSC of 1% may
be imposed on certain redemptions made within one year of purchase. If the
sales charges were included, total returns would be lower. These returns
include combined Rule 12b-1 fees and service fees of up to .25% and do not
reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption of Fund shares.
See Notes to Financial Statements 19
VAN KAMPEN EMERGING GROWTH FUND
FINANCIAL HIGHLIGHTS (UNAUDITED) continued
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE SHARE OF THE FUND
OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED AUGUST 31,
CLASS B SHARES FEB. 28, ------------------------------------------------------------------------
2005 2004 2003 2002 2001 2000
--------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF THE PERIOD............ $ 29.40 $ 29.57 $ 27.07 $ 38.04 $ 99.32 $ 55.56
-------- -------- -------- -------- -------- --------
Net Investment Loss...... (.07)(a) (.38)(a) (.36)(a) (.41)(a) (.41)(a) (.93)(a)
Net Realized and
Unrealized Gain/Loss... 3.28 .21 2.86 (10.56) (46.01) 53.99
-------- -------- -------- -------- -------- --------
Total from Investment
Operations............... 3.21 (.17) 2.50 (10.97) (46.42) 53.06
Less Distributions from Net
Realized Gain............ -0- -0- -0- -0- 14.86 9.30
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF THE
PERIOD................... $ 32.61 $ 29.40 $ 29.57 $ 27.07 $ 38.04 $ 99.32
======== ======== ======== ======== ======== ========
Total Return (b)........... 10.92%* -0.57% 9.24% -28.84% -51.60% 102.85%
Net Assets at End of the
Period (In millions)..... $1,930.1 $2,010.4 $2,346.3 $2,395.2 $3,904.7 $7,648.0
Ratio of Expenses to
Average Net Assets....... 1.87% 1.85% 1.91% 1.82% 1.71% 1.63%
Ratio of Net Investment
Loss to Average Net
Assets................... (.46%) (1.23%) (1.37%) (1.20%) (.74%) (1.12%)
Portfolio Turnover......... 57%* 177% 180% 230% 148% 110%
</Table>
* Non-Annualized
(a) Based on average shares outstanding.
(b) Assumes reinvestment of all distributions for the period and does not
include payment of the maximum CDSC of 5%, charged on certain redemptions
made within one year of purchase and declining to 0% after the fifth year.
If the sales charge was included, total returns would be lower. These
returns include combined Rule 12b-1 fees and service fees of up to 1% and do
not reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption of Fund shares.
20 See Notes to Financial Statements
VAN KAMPEN EMERGING GROWTH FUND
FINANCIAL HIGHLIGHTS (UNAUDITED) continued
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE SHARE OF THE FUND
OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED AUGUST 31,
CLASS C SHARES FEB. 28, ------------------------------------------------------------------
2005 2004 2003 2002 2001 2000
--------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF
THE PERIOD.................... $ 30.16 $30.34 $27.75 $39.00 $ 101.30 $ 56.52
------- ------ ------ ------ -------- --------
Net Investment Loss........... (.07)(a) (.39)(a) (.36)(a) (.42)(a) (.41)(a) (.95)(a)
Net Realized and Unrealized
Gain/Loss................... 3.36 .21 2.95 (10.83) (47.03) 55.03
------- ------ ------ ------ -------- --------
Total from Investment
Operations.................... 3.29 (.18) 2.59 (11.25) (47.44) 54.08
Less Distributions from Net
Realized Gain................. -0- -0- -0- -0- 14.86 9.30
------- ------ ------ ------ -------- --------
NET ASSET VALUE, END OF THE
PERIOD........................ $ 33.45 $30.16 $30.34 $27.75 $ 39.00 $ 101.30
======= ====== ====== ====== ======== ========
Total Return (b)................ 10.91%* -0.59% 9.33%(c) -28.85% -51.60% 102.91%
Net Assets at End of the Period
(In millions)................. $ 380.8 $430.2 $570.1 $629.0 $1,038.5 $1,944.0
Ratio of Expenses to Average Net
Assets........................ 1.87% 1.85% 1.91% 1.82% 1.70% 1.64%
Ratio of Net Investment Loss to
Average Net Assets............ (.46%) (1.23%) (1.34%)(c) (1.20%) (.73%) (1.11%)
Portfolio Turnover.............. 57%* 177% 180% 230% 148% 110%
</Table>
* Non-Annualized
(a) Based on average shares outstanding.
(b) Assumes reinvestment of all distributions for the period and does not
include payment of the maximum CDSC of 1%, charged on certain redemptions
made within one year of purchase. If the sales charge was included, total
returns would be lower. These returns include combined Rule 12b-1 fees and
service fees of up to 1% and do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund
shares.
(c) Certain non-recurring payments were made to class C Shares, resulting in an
increase to the Total Return and Ratio of Net Investment Income to Average
Net Assets of .03%
See Notes to Financial Statements 21
VAN KAMPEN EMERGING GROWTH FUND
FINANCIAL HIGHLIGHTS (UNAUDITED) continued
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE SHARE OF THE FUND
OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
<Table>
<Caption>
OCTOBER 17, 2000
SIX MONTHS (COMMENCEMENT
ENDED YEAR ENDED AUGUST 31, OF INVESTMENT
CLASS I SHARES FEB. 28, ---------------------------------- OPERATIONS) TO
2005 2004 2003 2002 AUGUST 31, 2001
------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF THE PERIOD............. $ 34.47 $ 34.33 $ 31.10 $ 43.27 $ 97.10
------- ------- ------- -------- ---------
Net Investment
Income/Loss............. .10(a) (.08)(a) (.11)(a) (.07)(a) .17(a)
Net Realized and
Unrealized Gain/Loss.... 3.86 .22 3.34 (12.10) (39.14)
------- ------- ------- -------- ---------
Total from Investment
Operations................ 3.96 .14 3.23 (12.17) (38.97)
Less Distributions from Net
Realized Gain............. -0- -0- -0- -0- 14.86
------- ------- ------- -------- ---------
NET ASSET VALUE, END OF THE
PERIOD.................... $ 38.43 $ 34.47 $ 34.33 $ 31.10 $ 43.27
======= ======= ======= ======== =========
Total Return (b)............ 11.49%* 0.41% 10.39% -28.13% -45.03%*
Net Assets at End of the
Period (In millions)...... $ 32.6 $ 31.8 $ 33.9 $ 29.8 $ 41.6
Ratio of Expenses to Average
Net Assets................ .86% .84% .90% .81% .72%
Ratio of Net Investment
Income/Loss to Average Net
Assets.................... .55% (.21%) (.36%) (.19%) .33%
Portfolio Turnover.......... 57%* 177% 180% 230% 148%
</Table>
* Non-Annualized
(a) Based on average shares outstanding.
(b) Assumes reinvestment of all distributions for the period.
22 See Notes to Financial Statements
VAN KAMPEN EMERGING GROWTH FUND
FINANCIAL HIGHLIGHTS (UNAUDITED) continued
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE SHARE OF THE FUND
OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
<Table>
<Caption>
OCTOBER 1, 2002
(COMMENCEMENT
SIX MONTHS YEAR OF INVESTMENT
ENDED ENDED OPERATIONS) TO
FEB. 28, AUGUST 31, AUGUST 31, 2003
CLASS R SHARES -----------------------------
2005 2004 2003
-------------------------------------------
NET ASSET VALUE, BEGINNING OF THE PERIOD........ $34.02 $34.04 $29.94
------ ------ ------
Net Investment Loss........................... .01(a) (.24)(a) (.24)(a)
Net Realized and Unrealized Gain.............. 3.79 .22 4.34
------ ------ ------
Total from Investment Operations................ 3.80 (.02) 4.10
------ ------ ------
NET ASSET VALUE, END OF THE PERIOD.............. $37.82 $34.02 $34.04
====== ====== ======
Total Return (b)................................ 11.17%* -0.06% 13.69%*
Net Assets at End of the Period (In millions)... $ 18.6 $ 20.0 $ .5
Ratio of Expenses to Average Net Assets......... 1.36% 1.33% 1.41%
Ratio of Net Investment Income/Loss to Average
Net Assets.................................... .04% (.65%) (.85%)
Portfolio Turnover.............................. 57%* 177% 180%
</Table>
* Non-Annualized
(a) Based on average shares outstanding
(b) Assumes reinvestment of all distributions for the period. These returns
include combined Rule 12b-1 fees of up to 0.50% and do not reflect the
deduction of taxes that a shareholder would pay on Fund distributions or the
redemption of Fund shares.
See Notes to Financial Statements 23
VAN KAMPEN EMERGING GROWTH FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 28, 2005 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen Emerging Growth Fund (the "Fund") is organized as a Delaware
statutory trust, and is registered as a diversified open-end management
investment company under the Investment Company Act of 1940 (the "1940 Act"), as
amended. The Fund's investment objective is capital appreciation. The Fund
commenced investment operations on October 2, 1970. The distribution of the
Fund's Class B, Class C, Class I, and Class R Shares commenced on April 20,
1992, July 6, 1993, October 17, 2000 and October 1, 2002, respectively. Prior to
September 1, 2004, the Class I Shares of the Fund were designated as Class D
Shares. All issued and outstanding Class D Shares were redesignated as Class I
shares as of that date.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
preparation of financial statements in conformity with U.S. generally accepted
accounting principles 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 Investments in securities listed on a securities exchange
are valued at their sales price as of the close of such securities exchange.
Equity securities traded on NASDAQ are valued at the NASDAQ Official Closing
Price. Listed and unlisted securities for which the last sale price is not
available are valued at the mean of the bid and asked prices. For those
securities where quotations or prices are not available, valuations are
determined in accordance with procedures established in good faith by the Board
of Trustees. Short-term securities with remaining maturities of 60 days or less
are valued at amortized cost, which approximates market value.
B. SECURITY TRANSACTIONS Security transactions are recorded on a trade date
basis. Realized gains and losses are determined on an identified cost basis.
The Fund may invest in repurchase agreements, which are short-term
investments whereby the Fund acquires ownership of a debt security and the
seller agrees to repurchase the security at a future time and specified price.
The Fund may invest independently in repurchase agreements, or transfer
uninvested cash balances into a pooled cash account along with other investment
companies advised by Van Kampen Asset Management (the "Adviser") or its
affiliates, the daily aggregate of which is invested in repurchase agreements.
Repurchase agreements are fully collateralized by the underlying debt security.
The Fund will make payment for such securities only upon physical delivery or
evidence of book entry transfer to the account of the custodian bank. The seller
is required to maintain the value of the underlying security at not less than
the repurchase proceeds due the Fund.
C. INCOME AND EXPENSES Dividend income is recorded on the ex-dividend date and
interest income is recorded on an accrual basis. Income and expenses of the Fund
are allocated on a pro rata basis to each class of shares, except for
distribution and service fees and incremental transfer agency costs which are
unique to each class of shares.
24
VAN KAMPEN EMERGING GROWTH FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 28, 2005 (UNAUDITED) continued
D. FEDERAL INCOME TAXES It is the Fund'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.
The Fund intends to utilize provisions of the federal income tax laws which
allow it to carry a realized capital loss forward for eight years following the
year of loss and offset such losses against any future realized capital gains.
At August 31, 2004, the Fund had an accumulated capital loss carryforward for
tax purposes of $6,380,899,491 which will expire according to the following
schedule.
<Table>
<Caption>
AMOUNT EXPIRATION
$3,628,401,778.............................................. August 31, 2010
2,752,497,713.............................................. August 31, 2011
</Table>
At February 28, 2005, the cost and related gross unrealized appreciation and
depreciation were as follows:
<Table>
Cost of investments for tax purposes........................ $4,944,628,198
==============
Gross tax unrealized appreciation........................... $ 947,524,088
Gross tax unrealized depreciation........................... (53,189,645)
--------------
Net tax unrealized appreciation on investments.............. $ 894,334,443
==============
</Table>
E. DISTRIBUTION OF INCOME AND GAINS The Fund declares and pays dividends
annually from net investment income and from net realized gains, if any.
Distributions from net realized gains for book purposes may include short-term
capital gains, which are included in ordinary income for tax purposes.
Net realized gains and losses may differ for financial reporting purposes
primarily as a result of the deferral of losses relating to wash sale
transactions.
F. EXPENSE REDUCTIONS During the six months ended February 28, 2005, the Fund's
custody fee was reduced by $30,942 as a result of credits earned on cash
balances.
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of the Fund's Investment Advisory Agreement, the Adviser will
provide investment advice and facilities to the Fund for an annual fee payable
monthly as follows:
<Table>
<Caption>
AVERAGE DAILY NET ASSETS % PER ANNUM
First $350 million.......................................... .575%
Next $350 million........................................... .525%
Next $350 million........................................... .475%
Over $1.05 billion.......................................... .425%
</Table>
For the six months ended February 28, 2005, the Fund recognized expenses of
approximately $169,400 representing legal services provided by Skadden, Arps,
Slate, Meagher & Flom LLP, of which a trustee of the Fund is a partner of such
firm and he and his law firm provide legal services as legal counsel to the
Fund.
25
VAN KAMPEN EMERGING GROWTH FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 28, 2005 (UNAUDITED) continued
Under an Accounting Services agreement, the Adviser provides accounting
services to the Fund. The Adviser allocates the cost of such services to each
fund. For the six months ended February 28, 2005, the Fund recognized expenses
of approximately $117,400 representing Van Kampen Investments Inc.'s or its
affiliates' (collectively "Van Kampen") cost of providing accounting services to
the Fund, which are reported as part of "Other" expenses in the Statement of
Operations.
Van Kampen Investor Services Inc., an affiliate of the Adviser, serves as
the shareholder servicing agent for the Fund. For the six months ended February
28, 2005, the Fund recognized expenses of approximately $9,201,500. Transfer
agency fees are determined through negotiations with the Fund's Board of
Trustees.
Certain officers and trustees of the Fund are also officers and directors of
Van Kampen. The Fund does not compensate its officers or trustees who are
officers of Van Kampen.
The Fund 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.
Amounts deferred are retained by the Fund and to the extent permitted by the
1940 Act, as amended, may be invested in the common shares of those funds
selected by the trustees. Investments in such funds of $435,392 are included in
"Other" assets on the Statement of Assets and Liabilities at February 28, 2005.
Appreciation/ depreciation and distributions received from these investments are
recorded with an offsetting increase/decrease in the deferred compensation
obligation and do not affect the net asset value of the Fund. 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 Fund. The maximum annual benefit per
trustee under the plan is $2,500.
For the six months ended February 28, 2005, the Fund paid brokerage
commissions to Morgan Stanley DW Inc. (Morgan Stanley), an affiliate of Van
Kampen, totaling $1,574,898.
3. CAPITAL TRANSACTIONS
At February 28, 2005, capital aggregated $5,800,371,249, $3,941,167,248,
$1,273,762,713, $83,297,246 and $17,587,220 for Classes A, B, C, I, and R,
respectively. For the six months ended February 28, 2005, transactions were as
follows:
<Table>
<Caption>
SHARES VALUE
Sales:
Class A.................................................. 6,972,211 $ 256,264,115
Class B.................................................. 1,708,313 53,893,813
Class C.................................................. 303,652 9,863,272
Class I.................................................. 52,745 1,975,501
Class R.................................................. 75,564 2,759,871
----------- ---------------
Total Sales................................................ 9,112,485 $ 324,756,572
=========== ===============
Repurchases:
Class A.................................................. (23,415,327) $ (861,063,363)
Class B.................................................. (10,895,015) (344,533,264)
Class C.................................................. (3,182,464) (103,482,621)
Class I.................................................. (126,299) (4,703,199)
Class R.................................................. (171,107) (6,189,045)
----------- ---------------
Total Repurchases.......................................... (37,790,212) $(1,319,971,492)
=========== ===============
</Table>
26
VAN KAMPEN EMERGING GROWTH FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 28, 2005 (UNAUDITED) continued
At August 31, 2004, capital aggregated $6,405,170,497, $4,231,806,699,
$1,367,382,062, $86,024,944 and $21,016,394 for Classes A, B, C, I and R,
respectively. For the year ended August 31, 2004, transactions were as follows:
<Table>
<Caption>
SHARES VALUE
Sales:
Class A.................................................. 18,786,524 $ 669,892,192
Class B.................................................. 5,296,493 163,446,114
Class C.................................................. 1,154,509 36,550,987
Class I.................................................. 208,563 7,508,169
Class R.................................................. 924,246 33,369,388
----------- ---------------
Total Sales................................................ 26,370,335 $ 910,766,850
=========== ===============
Repurchases:
Class A.................................................. (35,381,500) $(1,264,994,832)
Class B.................................................. (16,252,647) (499,964,345)
Class C.................................................. (5,683,822) (180,075,861)
Class I.................................................. (275,786) (9,917,441)
Class R.................................................. (350,264) (12,612,438)
----------- ---------------
Total Repurchases.......................................... (57,944,019) $(1,967,564,917)
=========== ===============
</Table>
Class B Shares purchased on or after June 1, 1996, and any dividend
reinvestment plan Class B Shares received on such shares, automatically convert
to Class A Shares eight years after the end of the calendar month in which the
Shares were purchased. Class B Shares purchased before June 1, 1996, and any
dividend reinvestment plan Class B Shares received on such shares, automatically
convert to Class A Shares six years after the end of the calendar month in which
the shares were purchased. For the six months ended February 28, 2005 and the
year ended August 31, 2004, 2,083,530 and 821,843 Class B Shares converted to
Class A Shares, respectively, and are shown in the above table as sales of Class
A Shares and repurchases of Class B Shares. Class C Shares purchased before
January 1, 1997, and any dividend reinvestment plan C Shares received on such
shares, automatically convert to Class A Shares ten years after the end of the
calendar month in which such shares were purchased. Class C Shares purchased on
or after January 1, 1997 do not possess a conversion feature. For the six months
ended February 28, 2005 and the year ended August 31, 2004, 216,866 and 39,682
Class C Shares converted to Class A Shares, respectively, and are shown in the
above table as sales of Class A Shares and repurchases of Class C Shares. Class
I and Class R Shares do not possess a conversion feature. Class B and C Shares
are offered without a front end sales charge, but are subject to a contingent
deferred sales charge (CDSC). The CDSC for Class B and C Shares will be imposed
on most redemptions made within five years
27
VAN KAMPEN EMERGING GROWTH FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 28, 2005 (UNAUDITED) continued
of the purchase for Class B and one year of the purchase for Class C as detailed
in the following schedule.
<Table>
<Caption>
CONTINGENT DEFERRED
SALES CHARGE
AS A PERCENTAGE
OF DOLLAR AMOUNT
SUBJECT TO CHARGE
--------------------------
YEAR OF REDEMPTION CLASS B CLASS C
First....................................................... 5.00% 1.00%
Second...................................................... 4.00% None
Third....................................................... 3.00% None
Fourth...................................................... 2.50% None
Fifth....................................................... 1.50% None
Sixth and Thereafter........................................ None None
</Table>
For the six months ended February 28, 2005, Van Kampen, as Distributor for
the Fund, received net commissions on sales of the Fund's Class A Shares of
approximately $367,600 and CDSC on redeemed shares of approximately $2,033,200.
Sales charges do not represent expenses to the Fund.
4. INVESTMENT TRANSACTIONS
During the period, the cost of purchases and proceeds from sales of investments,
excluding short-term investments, were $3,346,136,141 and $4,128,629,139,
respectively.
5. DISTRIBUTION AND SERVICE PLANS
With respect to its Class A Shares, Class B Shares, Class C Shares, and Class R
Shares, the Fund and its shareholders have adopted a distribution plan pursuant
to Rule 12b-1 under the 1940 Act, as amended, and a service plan (collectively
the "Plans"). The Plans govern payments for: the distribution of the Fund's
Class A Shares, Class B Shares, Class C Shares, and Class R Shares; the
provision of ongoing shareholder services with respect to such classes of
shares; and maintenance of shareholder accounts with respect to such classes of
shares.
Annual fees under the Plan of up to .25% of Class A average daily net assets
and up to 1.00% each for Class B and Class C average daily net assets and .50%
of Class R Shares average daily net assets are accrued daily. The annual fees
for Class A Shares and Class R Shares are paid quarterly and annual fees for
Class C Shares are paid monthly. For Class B Shares, .75% of the annual fees are
paid monthly, while .25% of the annual fees are paid quarterly. The amount of
distribution expenses incurred by Van Kampen and not yet reimbursed
("unreimbursed receivable") was approximately $31,197,065 and $1,419,265 for
Class B and Class C Shares, respectively. These amounts may be recovered from
future payments under the distribution plan or CDSC. To the extent the
unreimbursed receivable has been fully recovered, any excess 12b-1 fees will be
refunded to the Fund on a quarterly basis.
Included in the fees for the six months ended February 28, 2005 are payments
retained by Van Kampen of approximately $7,860,300 and payments made to Morgan
Stanley, an affiliate of the Adviser, of approximately $575,400.
28
VAN KAMPEN EMERGING GROWTH FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 28, 2005 (UNAUDITED) continued
6. LEGAL MATTERS
The Adviser, certain affiliates of the Adviser, and certain investment companies
advised by the Adviser or its affiliates, including the Fund, are named as
defendants in a number of similar class action complaints which were recently
consolidated. The consolidated action also names as defendants certain
individual Trustees and Directors of certain investment companies advised by
affiliates of the Adviser; the complaint does not, however, name the individual
Trustees of any Van Kampen funds. The consolidated amended complaint generally
alleges that defendants violated their statutory disclosure obligations and
fiduciary duties by failing properly to disclose (i) that the Adviser and
certain affiliates of the Adviser allegedly offered economic incentives to
brokers and others to steer investors to the funds advised by the Adviser or its
affiliates rather than funds managed by other companies, and (ii) that the funds
advised by the Adviser or its affiliates, including the Fund, allegedly paid
excessive commissions to brokers in return for their alleged efforts to steer
investors to these funds. The complaint seeks, among other things, unspecified
compensatory damages, rescissionary damages, fees and costs.
The Adviser and certain affiliates of the Adviser are also named as
defendants in a derivative suit which additionally names as defendants certain
individual Trustees of certain Van Kampen funds; the named investment companies,
including the Fund, are listed as nominal defendants. The complaint alleges that
defendants caused the Van Kampen funds to pay economic incentives to a
proprietary sales force to promote the sale of proprietary mutual funds. The
complaint also alleges that the Van Kampen funds paid excessive commissions to
Morgan Stanley and its affiliates in connection with the sales of the funds. The
complaint seeks, among other things, the removal of the current Trustees of the
funds, rescission of the management contracts for the funds, disgorgement of
profits by Morgan Stanley and its affiliates and monetary damages. This
complaint has been coordinated with the consolidated complaint described in the
preceding paragraph. Plaintiff has sought leave to file a second amended
derivative compliant that alleges that the Adviser permitted or recklessly
disregarded market timing and late trading in its proprietary mutual funds in
order to increase assets under management and fees. However, pursuant to an
agreement between the parties, that plaintiff's proposed second amended
derivative complaint was withdrawn and the allegations regarding market timing
and late trading asserted therein were filed in a separate complaint and
coordinated with other cases related to market timing that have been centralized
in a federal court.
The defendants have moved to dismiss each of these actions and otherwise
intend to defend them vigorously. While the defendants believe that they have
meritorious defenses, the ultimate outcome of these matters is not presently
determinable at this early stage of litigation, and no provision has been made
in the Fund's financial statements for the effect, if any, of these matters.
7. INDEMNIFICATIONS
The Fund enters into contracts that contain a variety of indemnifications. The
Fund's maximum exposure under these arrangements is unknown. However, the Fund
has not had prior claims or losses pursuant to these contracts and expects the
risk of loss to be remote.
29
BOARD OF TRUSTEES AND IMPORTANT ADDRESSES
VAN KAMPEN EMERGING GROWTH FUND
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
DISTRIBUTOR
VAN KAMPEN FUNDS INC.
1221 Avenue of the Americas
New York, New York 10020
SHAREHOLDER SERVICING AGENT
VAN KAMPEN INVESTOR SERVICES INC.
P.O. Box 947
Jersey City, New Jersey 07303-0947
CUSTODIAN
STATE STREET BANK
AND TRUST COMPANY
225 Franklin Street
P.O. Box 1713
Boston, Massachusetts 02110
LEGAL COUNSEL
SKADDEN, ARPS, SLATE,
MEAGHER & FLOM LLP
333 West Wacker Drive
Chicago, Illinois 60606
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
ERNST & YOUNG LLP
233 South Wacker Drive
Chicago, Illinois 60606
* "Interested persons" of the Fund, as defined in the Investment Company Act
of 1940, as amended.
30
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.
The Statement of Additional Information includes additional information about
Fund trustees and is available, without charge, upon request by calling
1-800-847-2424.
Van Kampen Funds Inc.
1 Parkview Plaza, P.O. Box 5555
Oakbrook Terrace, IL 60181-5555
www.vankampen.com
Copyright (C)2005 Van Kampen Funds Inc. All rights reserved.
Member NASD/SIPC. 16, 116, 216, 516, 316
EMG SAR 4/05 RN05-00830P-Y02/05
(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. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. Controls and Procedures
(a) The Fund's principal executive officer and principal financial officer have
concluded that the Fund's disclosure controls and procedures are sufficient to
ensure that information required to be disclosed by the Fund 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 12. 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 Emerging Growth Fund
By: /s/ Ronald E. Robison
----------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: April 19, 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: April 19, 2005
By: /s/ James W. Garrett
--------------------
Name: James W. Garrett
Title: Principal Financial Officer
Date: April 19, 2005