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 811-7088
Van Kampen Massachusetts Value 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: 10/31
Date of reporting period: 4/30/05
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
Massachusetts Value 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 April 30, 2005.
MARKET FORECASTS PROVIDED IN THIS REPORT MAY NOT NECESSARILY COME TO
PASS. THERE IS NO ASSURANCE THAT THE TRUST WILL ACHIEVE ITS INVESTMENT
OBJECTIVE. TRUSTS ARE SUBJECT TO MARKET RISK, WHICH IS THE POSSIBILITY
THAT THE MARKET VALUES OF SECURITIES OWNED BY THE TRUST WILL DECLINE AND
THAT THE VALUE OF THE TRUST SHARES MAY THEREFORE BE LESS THAN WHAT YOU
PAID FOR THEM. ACCORDINGLY, YOU CAN LOSE MONEY INVESTING IN THIS TRUST.
INCOME MAY SUBJECT CERTAIN INDIVIDUALS TO THE FEDERAL ALTERNATIVE MINIMUM
TAX (AMT).
<Table>
<Caption>
---------------------------------------------------------------------------------------
NOT FDIC INSURED OFFER NO BANK GUARANTEE MAY LOSE VALUE
---------------------------------------------------------------------------------------
NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY NOT A DEPOSIT
---------------------------------------------------------------------------------------
</Table>
Performance Summary as of 4/30/05
<Table>
<Caption>
MASSACHUSETTS VALUE MUNICIPAL INCOME TRUST
SYMBOL: VMV
- -----------------------------------------------------------
AVERAGE ANNUAL BASED ON BASED ON
TOTAL RETURNS NAV MARKET
Since Inception (4/30/93) 6.84% 6.76%
10-year 8.23 8.23
5-year 9.26 11.15
1-year 10.84 19.82
6-month 3.08 0.15
- -----------------------------------------------------------
</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.
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 Massachusetts Municipal Bond Index is a broad-based
statistical composite of Massachusetts 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.
1
Trust Report
FOR THE 6-MONTH PERIOD ENDED APRIL 30, 2005
Van Kampen Massachusetts Value Municipal Income Trust is managed by the
Adviser's Municipal Fixed Income team.(1) Current members include Timothy D.
Haney and Robert Wimmel, Vice Presidents of the Adviser; and John Reynoldson,
Executive Director of the Adviser.
MARKET CONDITIONS
The six-month period ended April 30, 2005, was characterized by continued
short-term interest rate increases. As crude oil prices reached record highs,
the prospect of rising inflation also cast a shadow. The Federal Open Market
Committee (the "Fed") raised the federal funds target rate 100 basis points
during the period through a series of four "measured" 0.25 percent tightenings
to 2.75 percent by the end of April. Although rates in the short and
intermediate areas of the yield curve shifted upward as the Fed tightened, long-
term interest rates fell as buyers did not seem deterred by the prospect of
rising inflation. As a result, the yield curve (the difference between short and
longer-term yields) flattened and the long end of the municipal market handily
outperformed the shorter end.
The municipal market in total posted positive returns during the period, though
it was not uniformly strong. In contrast to the strong showing by longer-term
bonds, shorter-term municipals were hampered by the Fed's tightening and turned
in a flat to slightly negative showing. Within the investment-grade segment of
the market, yield differentials between BBB-rated and AAA-rated municipal
securities were slightly wider, though BBB-rated securities still outperformed
high grades due to their higher coupons, while securities rated below investment
grade strongly outperformed as investors sought out their higher yields.
The Fed's interest rate hikes did not appear to dampen investors' appetites for
municipal bonds, as net inflows into municipal bond funds topped $290 million
during the period. The supply of new issues was modest during the closing months
of 2004 (the first two months of the period) before soaring in the opening
months of 2005 as long-term issuers rushed to bring securities to market in
anticipation of additional interest rate increases in the near term.
Massachusetts' economy has been steadily improving. State income tax revenues
have rebounded. Other positives include the near-completion of the "Big Dig"
project, the spin off of some debt, and growth in the Boston economy. Employment
figures are stable and above the national average.
(1)Team members may change without notice at any time.
2
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 can differ, as they did during the reporting period. On an NAV basis,
the trust outperformed its benchmark index, the Lehman Brothers Massachusetts
Municipal Bond Index. On a market price basis, the trust underperformed its
benchmark.
TOTAL RETURNS FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2005
<Table>
<Caption>
- -------------------------------------------------------------
LEHMAN BROTHERS
BASED ON BASED ON MASSACHUSETTS MUNICIPAL
NAV MARKET PRICE BOND INDEX
3.08% 0.15% 1.66%
- -------------------------------------------------------------
</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. The Fed's policy of
raising interest rates throughout the period made the trust's borrowing activity
more expensive. These expenses, however, were more than offset by the positive
performance of the bonds held by the trust.
As part of an ongoing strategy to position the trust for continued increases in
short-term interest rates, we trimmed exposure to bonds with maturities in the
five- to 15-year range, including zero coupon bonds with maturities toward the
longer end of that range. During the period, the portfolio also experienced a
fair amount of call activity. We re-deployed assets by adding selectively to the
trust's holdings of bonds with longer maturities but moderate interest rate
characteristics. We kept the trust's duration (a measure of overall
interest-rate sensitivity) below that of its benchmark.
We continued to focus on relative-value trading between liquid, high-quality
securities to capture relative value opportunities identified by our analysts.
The trust's overall credit exposure remained tilted toward higher-quality
securities, with more than 81 percent of its exposure at the end of the period
in bonds rated AA or better. We took advantage of what we believed were some
compelling opportunities to add BBB rated securities to the portfolio when our
analysts identified securities with attractive structures and yield
characteristics.
3
By the end of the period, bonds rated BBB represented 7 percent of the
portfolio, an allocation which proved beneficial as the market favored higher-
coupon securities.
The trust's portfolio remained well diversified across the major sectors of the
municipal bond market. At the end of the period, the top three sectors were
higher education, general purpose and transportation.
There is no guarantee the security sectors mentioned will continue to perform
well or be held by the trust in the future.
<Table>
TOP 5 SECTORS AS OF 4/30/05 RATINGS ALLOCATION AS OF 4/30/05
Higher Education 20.7% AAA/Aaa 73.4%
General Purpose 17.0 AA/Aa 8.5
Transportation 16.0 A/A 9.2
Water & Sewer 13.6 BBB/Baa 7.4
Health Care 11.0 BB/Ba 1.5
</Table>
Subject to change daily. Provided for informational purposes only and should not
be deemed as a recommendation to buy or sell the securities mentioned or
securities in the sectors shown above. Ratings are as a percentage of total
investments. Sectors are as a percentage of long-term investments. Securities
are classified by sectors that represent broad groupings of related industries.
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. Rating allocations based upon ratings
as issued by Standard and Poor's and Moody's, respectively.
4
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.
You may obtain copies of a trust's fiscal quarter filings by contacting
Van Kampen Client Relations at 1-800-847-2424.
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 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.
5
VAN KAMPEN MASSACHUSETTS VALUE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2005 (UNAUDITED)
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
MUNICIPAL BONDS 152.9%
MASSACHUSETTS 136.1%
$1,000 Boston, MA Ser A Rfdg (MBIA Insd)................ 5.000% 02/01/21 $ 1,077,250
2,000 Boston, MA Wtr & Swr Commn Rev Gen Sr Ser A...... 5.000 11/01/21 2,156,040
2,385 Greater Lawrence, MA San Dist (MBIA Insd)........ 6.000 06/15/17 2,703,541
1,000 Holyoke, MA Gas & Elec Dept Rev Ser A (MBIA
Insd)............................................ 5.000 12/01/31 1,043,760
1,000 Marthas Vineyard, MA Ld Bk Rev (AMBAC Insd)...... 5.000 05/01/22 1,073,820
230 Massachusetts Ed Ln Auth Ed Ln Rev Issue E Ser B
(AMBAC Insd) (AMT)............................... 6.250 07/01/11 233,024
285 Massachusetts Ed Ln Auth Ed Ln Rev Issue E Ser B
(AMBAC Insd) (AMT)............................... 6.300 07/01/12 288,716
1,000 Massachusetts St Cons Ln Ser B (Prerefunded @
08/01/14) (AMBAC Insd)........................... 5.000 08/01/22 1,100,060
1,000 Massachusetts St Dev Fin Agy M/Srbc Proj Ser A
(MBIA Insd)...................................... 5.125 08/01/28 1,049,410
1,000 Massachusetts St Dev Fin Agy Rev College Pharmacy
& Allied Hlth Ser D.............................. 5.000 07/01/35 1,039,560
250 Massachusetts St Dev Fin Agy Rev Evergreen Ctr,
Inc. ............................................ 5.000 01/01/24 242,167
500 Massachusetts St Dev Fin Agy Rev Evergreen Ctr,
Inc. ............................................ 5.500 01/01/35 495,050
1,000 Massachusetts St Dev Fin Agy Rev Hampshire
College.......................................... 5.700 10/01/34 1,052,730
1,000 Massachusetts St Dev Fin Agy Rev MA College of
Pharmacy Ser B (Prerefunded @ 01/01/10).......... 6.750 07/01/30 1,168,850
1,000 Massachusetts St Dev Fin Agy Rev Pharmacy &
Allied Hlth Sciences............................. 5.750 07/01/33 1,053,810
2,000 Massachusetts St Hlth & Ed Boston College Ser
N................................................ 5.125 06/01/33 2,102,300
480 Massachusetts St Hlth & Ed Fac Auth Rev Youville
House Proj A (Prerefunded @ 02/15/07) (FHA
Gtd)............................................. 5.950 02/15/17 512,890
1,000 Massachusetts St Hlth & Ed Fac Auth Rev Brandeis
Univ Ser I (MBIA Insd)........................... 4.750 10/01/28 1,013,700
1,500 Massachusetts St Hlth & Ed Fac Auth Rev Hlthcare
Sys Covenant Hlth................................ 6.000 07/01/31 1,597,515
1,000 Massachusetts St Hlth & Ed Fac Auth Rev Newton
Wellesley Hosp Issue Ser E (MBIA Insd)........... 5.875 07/01/15 1,024,680
1,000 Massachusetts St Hlth & Ed Fac Auth Rev Saint Mem
Med Ctr Ser A.................................... 6.000 10/01/23 1,004,060
1,000 Massachusetts St Hlth & Ed Fac Auth Rev Vly Regl
Hlth Sys Ser C Rfdg (Connie Lee Insd)............ 7.000 07/01/10 1,166,010
1,000 Massachusetts St Hlth & Ed New England Med Ctr
Hosp Ser H (FGIC Insd)........................... 5.000 05/15/25 1,045,230
750 Massachusetts St Hsg Fin Agy Rental Mtg Ser D
(AMBAC Insd)..................................... 6.200 07/01/15 766,883
500 Massachusetts St Indl Fin Agy Rev First Mtg
Loomis House & Vlg Proj (Prerefunded @
07/01/05)........................................ 7.500 07/01/17 514,185
</Table>
6 See Notes to Financial Statements
VAN KAMPEN MASSACHUSETTS VALUE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2005 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
MASSACHUSETTS (CONTINUED)
$2,000 Massachusetts St Indl Fin Agy Rev Suffolk Univ
(AMBAC Insd)..................................... 5.250% 07/01/27 $ 2,113,280
2,075 Massachusetts St Indl Fin Agy Rev Tufts Univ Ser
H (MBIA Insd).................................... 4.750 02/15/28 2,094,152
1,000 Massachusetts St Indl Fin Agy Rev Whitehead Inst
Biomedical Research.............................. 5.125 07/01/26 1,003,080
930 Massachusetts St Indl Fin Agy Wtr Treatment Amern
Hingham (AMT).................................... 6.900 12/01/29 983,289
930 Massachusetts St Indl Fin Agy Wtr Treatment Amern
Hingham (AMT).................................... 6.950 12/01/35 984,024
1,000 Massachusetts St Spl Oblig Dedicated Tax Rev
(FGIC Insd)...................................... 5.000 01/01/34 1,048,320
5,000 Massachusetts St Tpk Auth Metro Hwy Ser Rev Cap
Apprec Sr Ser C (MBIA Insd)...................... * 01/01/22 2,334,850
2,550 Massachusetts St Tpk Auth Metro Hwy Sys Rev Sub
Ser A (AMBAC Insd)............................... 5.000 01/01/39 2,616,530
3,000 Massachusetts St Tpk Auth Rev Ser A Rfdg
(Escrowed to Maturity)........................... 5.000 01/01/13 3,244,530
2,000 Massachusetts St Wtr Pollutn Abatement Tr Pool
Pgm Bds Ser 10................................... 5.000 08/01/21 2,152,520
1,000 Massachusetts St Wtr Pollutn MWRA Pgm Ser A...... 5.000 08/01/32 1,043,490
1,000 Massachusetts St Wtr Res Auth Gen Ser B Rfdg
(AMBAC Insd)..................................... 5.000 12/01/20 1,078,220
1,385 Monson, MA (AMBAC Insd) (a)...................... 5.250 11/01/19 1,534,303
1,500 Narragansett, MA Rgl Sch Dist (AMBAC Insd)....... 5.375 06/01/18 1,651,800
1,000 New Bedford, MA Muni Purp Ln (FGIC Insd)......... 5.000 05/01/20 1,067,590
2,500 New England Ed Ln Mktg Corp MA Student Ln Rev Sub
Issue H (Std Lns Gtd) (AMT)...................... 6.900 11/01/09 2,672,175
1,000 Pittsfield, MA (MBIA Insd)....................... 5.125 04/15/22 1,089,340
2,000 University MA Bldg Auth Proj Sr Ser 1 Rfdg (AMBAC
Insd)............................................ 5.250 11/01/21 2,206,020
1,975 Westford, MA (AMBAC Insd)........................ 5.250 06/01/19 2,184,350
------------
59,627,104
------------
PUERTO RICO 11.8%
2,000 Puerto Rico Comwlth Hwy & Tran Auth Hwy Rev Ser Y
Rfdg (FSA Insd).................................. 6.250 07/01/21 2,538,860
1,000 Puerto Rico Comwlth Rfdg (FGIC Insd)............. 5.250 07/01/09 1,090,240
2,000 Puerto Rico Pub Bldg Auth Rev Gtd Conv Cap Apprec
Ser D (AMBAC Insd) (b)........................... 0/5.450 07/01/30 1,521,620
------------
5,150,720
</Table>
See Notes to Financial Statements 7
VAN KAMPEN MASSACHUSETTS VALUE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2005 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------------
------------
U.S. VIRGIN ISLANDS 5.0%
$1,000 University Virgin Islands Impt Ser A............. 5.375% 06/01/34 $ 1,056,400
1,000 Virgin Islands Pub Fin Auth Rev Gross Rcpt Taxes
Ln Nt Ser A...................................... 6.375 10/01/19 1,140,350
------------
2,196,750
------------
TOTAL LONG-TERM INVESTMENTS 152.9%
(Cost $61,265,297)........................................................... 66,974,574
SHORT-TERM INVESTMENT 2.3%
(Cost $1,000,000)............................................................ 1,000,000
------------
TOTAL INVESTMENTS 155.2%
(Cost $62,265,297)........................................................... 67,974,574
OTHER ASSETS IN EXCESS OF LIABILITIES 1.9%.................................... 847,593
PREFERRED SHARES (INCLUDING ACCRUED DISTRIBUTIONS) (57.1%).................... (25,011,100)
------------
NET ASSETS APPLICABLE TO COMMON SHARES 100.0%................................. $ 43,811,067
============
</Table>
Percentages are calculated as a percentage of net assets applicable to common
shares.
* Zero coupon bond
(a) The Trust owns 100% of the bond issuance.
(b) Security is a "step-up" bond where the coupon increases or steps up at a
predetermined date.
AMBAC--AMBAC Indemnity Corp.
AMT--Alternative Minimum Tax
Connie Lee--Connie Lee Insurance Co.
FGIC--Financial Guaranty Insurance Co.
FHA--Federal Housing Administration
FSA--Financial Security Assurance Inc.
MBIA--Municipal Bond Investors Assurance Corp.
Std Lns--Student Loans
8 See Notes to Financial Statements
VAN KAMPEN MASSACHUSETTS VALUE MUNICIPAL INCOME TRUST
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
April 30, 2005 (Unaudited)
<Table>
ASSETS:
Total Investments (Cost $62,265,297)........................ $67,974,574
Cash........................................................ 9,315
Interest Receivable......................................... 1,119,752
Other....................................................... 1,049
-----------
Total Assets............................................ 69,104,690
-----------
LIABILITIES:
Payables:
Investment Advisory Fee................................... 30,890
Income Distributions--Common Shares....................... 7,508
Other Affiliates.......................................... 2,455
Trustees' Deferred Compensation and Retirement Plans........ 209,236
Accrued Expenses............................................ 32,434
-----------
Total Liabilities....................................... 282,523
Preferred Shares (including accrued distributions).......... 25,011,100
-----------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $43,811,067
===========
NET ASSET VALUE PER COMMON SHARE ($43,811,067 divided by
2,686,176 shares outstanding)............................. $ 16.31
===========
NET ASSETS CONSIST OF:
Common Shares ($.01 par value with an unlimited number of
shares authorized, 2,686,176 shares issued and
outstanding).............................................. $ 26,862
Paid in Surplus............................................. 37,249,960
Net Unrealized Appreciation................................. 5,709,277
Accumulated Undistributed Net Investment Income............. 508,884
Accumulated Net Realized Gain............................... 316,084
-----------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $43,811,067
===========
PREFERRED SHARES ($.01 par value, authorized 100,000,000
shares, 1,000 issued with liquidation preference of
$25,000 per share)........................................ $25,000,000
===========
NET ASSETS INCLUDING PREFERRED SHARES....................... $68,811,067
===========
</Table>
See Notes to Financial Statements 9
VAN KAMPEN MASSACHUSETTS VALUE MUNICIPAL INCOME TRUST
FINANCIAL STATEMENTS continued
Statement of Operations
For the Six Months Ended April 30, 2005 (Unaudited)
<Table>
INVESTMENT INCOME:
Interest.................................................... $1,707,721
----------
EXPENSES:
Investment Advisory Fee..................................... 187,156
Preferred Share Maintenance................................. 37,198
Trustees' Fees and Related Expenses......................... 15,610
Legal....................................................... 9,760
Custody..................................................... 3,043
Other....................................................... 47,366
----------
Total Expenses.......................................... 300,133
----------
NET INVESTMENT INCOME....................................... $1,407,588
==========
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Gain........................................... $ 316,018
----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 5,888,944
End of the Period......................................... 5,709,277
----------
Net Unrealized Depreciation During the Period............... (179,667)
----------
NET REALIZED AND UNREALIZED GAIN............................ $ 136,351
==========
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS..................... $ (178,600)
==========
NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM
OPERATIONS................................................ $1,365,339
==========
</Table>
10 See Notes to Financial Statements
VAN KAMPEN MASSACHUSETTS VALUE MUNICIPAL INCOME TRUST
FINANCIAL STATEMENTS continued
Statements of Changes in Net Assets (Unaudited)
<Table>
<Caption>
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2005 OCTOBER 31, 2004
------------------------------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income................................... $ 1,407,588 $ 2,829,158
Net Realized Gain....................................... 316,018 386,999
Net Unrealized Appreciation/Depreciation During the
Period................................................ (179,667) 481,001
Distributions to Preferred Shareholders:
Net Investment Income................................. (148,824) (200,525)
Net Realized Gain..................................... (29,776) -0-
----------- -----------
Change in Net Assets Applicable to Common Shares from
Operations............................................ 1,365,339 3,496,633
Distributions to Common Shareholders:
Net Investment Income................................. (1,304,735) (2,604,977)
Net Realized Gain..................................... (401,698) -0-
----------- -----------
NET CHANGE IN NET ASSETS APPLICABLE TO COMMON SHARES
FROM INVESTMENT ACTIVITIES............................ (341,094) 891,656
FROM CAPITAL TRANSACTIONS:
Value of Common Shares Issued Through Dividend
Reinvestment.......................................... 51,799 93,775
----------- -----------
TOTAL INCREASE/DECREASE IN NET ASSETS APPLICABLE TO
COMMON SHARES......................................... (289,295) 985,431
NET ASSETS APPLICABLE TO COMMON SHARES:
Beginning of the Period................................. 44,100,362 43,114,931
----------- -----------
End of the Period (Including accumulated undistributed
net investment income of $508,884 and $554,855,
respectively)......................................... $43,811,067 $44,100,362
=========== ===========
</Table>
See Notes to Financial Statements 11
VAN KAMPEN MASSACHUSETTS VALUE 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
APRIL 30, ------------------
2005 2004 2003
--------------------------------
NET ASSET VALUE, BEGINNING OF THE PERIOD.................. $ 16.44 $ 16.10 $ 16.07
------- ------- -------
Net Investment Income................................... .48 1.05 1.08
Net Realized and Unrealized Gain/Loss................... .10 .33 .06
Common Share Equivalent of Distributions Paid to
Preferred Shareholders:
Net Investment Income................................. (.06) (.07) (.08)
Net Realized Gain..................................... (.01) -0- -0-
------- ------- -------
Total from Investment Operations.......................... .51 1.31 1.06
Distributions Paid to Common Shareholders:
Net Investment Income................................. (.49) (.97) (1.03)
Net Realized Gain..................................... (.15) -0- -0-
------- ------- -------
NET ASSET VALUE, END OF THE PERIOD........................ $ 16.31 $ 16.44 $ 16.10
======= ======= =======
Common Share Market Price at End of the Period............ $ 16.29 $ 16.90 $ 16.24
Total Return (b).......................................... 0.15%* 10.62% 2.09%
Net Assets Applicable to Common Shares at End of the
Period (In millions).................................... $ 43.8 $ 44.1 $ 43.1
Ratio of Expenses to Average Net Assets Applicable to
Common Shares (c)....................................... 1.39% 1.58% 1.61%
Ratio of Net Investment Income to Average Net Assets
Applicable to Common Shares (c)......................... 6.51% 6.54% 6.71%
Portfolio Turnover........................................ 6%* 16% 14%
SUPPLEMENTAL RATIOS:
Ratio of Expenses to Average Net Assets Including
Preferred Shares (c).................................... .88% 1.00% 1.02%
Ratio of Net Investment Income to Average Net Assets
Applicable to Common Shares (d)......................... 5.82% 6.08% 6.21%
SENIOR SECURITIES:
Total Preferred Shares Outstanding........................ 1,000 1,000 1,000
Asset Coverage Per Preferred Share (e).................... $68,822 $69,108 $68,118
Involuntary Liquidating Preference Per Preferred Share.... $25,000 $25,000 $25,000
Average Market Value Per Preferred Share.................. $25,000 $25,000 $25,000
</Table>
* Non-Annualized
(a)As required, effective November 1, 2001, the Trust has adopted the provisions
of the AICPA Audit and Accounting Guide for Investment Companies and began
accreting discount on fixed income securities. The effect of this change for
the year ended October 31, 2002 was to increase net investment income per
share by $.02, decrease net realized and unrealized gains and losses per
share by $.02 and increase the ratio of net investment income to average net
assets applicable to common shares from 7.02% to 7.16%. Per share, ratios and
supplemental data for periods prior to October 31, 2002 have not been
restated to reflect this change in presentation.
(b)Total return assumes an investment at the common share market price at the
beginning of the period indicated, reinvestment of all distributions for the
period in accordance with the Trust's dividend reinvestment plan, and sale of
all shares at the closing common share market price at the end of the period
indicated.
(c)Ratios do not reflect the effect of dividend payments to preferred
shareholders.
(d)Ratios reflect the effect of dividend payments to preferred shareholders.
(e)Calculated by subtracting the Trust's total liabilities (not including the
preferred shares) from the Trust's total assets and dividing this by the
number of preferred shares outstanding.
12
<Table>
<Caption>
YEAR ENDED OCTOBER 31,
- ----------------------------------------------------------------------------------------
2002 (a) 2001 2000 1999 1998 1997 1996 1995
- ----------------------------------------------------------------------------------------
$ 15.95 $ 14.84 $ 14.40 $ 15.77 $ 15.24 $ 14.53 $ 14.26 $ 12.27
------- ------- -------- ------- -------- -------- -------- --------
1.13 1.09 1.10 1.07 1.07 1.08 1.07 1.08
.04 1.15 .50 (1.42) .56 .70 .21 2.01
(.11) (.28) (.33) (.24) (.32) (.29) (.29) (.33)
-0- -0- -0- -0- -0- -0- -0- -0-
------- ------- -------- ------- -------- -------- -------- --------
1.06 1.96 1.27 (.59) 1.31 1.49 .99 2.76
(.94) (.85) (.83) (.78) (.78) (.78) (.72) (.77)
-0- -0- -0- -0- -0- -0- -0- -0-
------- ------- -------- ------- -------- -------- -------- --------
$ 16.07 $ 15.95 $ 14.84 $ 14.40 $ 15.77 $ 15.24 $ 14.53 $ 14.26
======= ======= ======== ======= ======== ======== ======== ========
$ 16.95 $ 15.51 $13.9375 $ 13.25 $ 15.875 $ 14.50 $ 12.375 $ 12.00
15.96% 17.71% 11.68% -12.07% 13.22% 23.97% 9.26% 12.26%
$ 42.9 $ 42.4 $ 39.5 $ 38.3 $ 41.9 $ 40.5 $ 38.6 $ 37.9
1.64% 1.86% 1.97% 1.88% 1.88% 1.95% 2.06% 2.17%
7.16% 7.05% 7.59% 6.97% 6.89% 7.29% 7.54% 8.13%
11% 11% 23% 5% 3% 8% 12% 65%
1.03% 1.16% 1.19% 1.17% 1.17% 1.19% 1.24% 1.27%
6.44% 5.25% 5.31% 5.38% 4.84% 5.29% 5.49% 5.65%
1,000 1,000 1,000 1,000 500 500 500 500
$67,889 $67,436 $ 64,480 $63,303 $133,850 $131,032 $127,272 $125,798
$25,000 $25,000 $ 25,000 $25,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
$25,000 $25,000 $ 25,000 $25,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
</Table>
See Notes to Financial Statements 13
VAN KAMPEN MASSACHUSETTS VALUE MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2005 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen Massachusetts Value Municipal Income Trust (the "Trust") is
registered as a non-diversified, closed-end management investment company under
the Investment Company Act of 1940, as amended. The Trust's investment objective
is to seek to provide common shareholders with a high level of current income
exempt from federal income taxes and Massachusetts personal income tax,
consistent with preservation of capital. The Trust will invest substantially all
of its assets in Massachusetts municipal securities rated investment grade at
the time of investment. The Trust commenced investment operations on April 30,
1993.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
A. SECURITY VALUATION Municipal bonds are valued by independent pricing services
or dealers using the mean of the bid and asked prices or, in the absence of
market quotations, at fair value based upon yield data relating to municipal
bonds with similar characteristics and general market conditions. Securities
which are not valued by independent pricing services or dealers are valued at
fair value using procedures established in good faith by the Board of Trustees.
Short-term securities with remaining maturities of 60 days or less are valued at
amortized cost, which approximates market value.
B. SECURITY TRANSACTIONS Security transactions are recorded on a trade date
basis. Realized gains and losses are determined on an identified cost basis. The
Trust may purchase and sell securities on a "when-issued" or "delayed delivery"
basis with settlement to occur at a later date. The value of the security so
purchased is subject to market fluctuations during this period. The Trust will
segregate assets with the custodian having an aggregate value at least equal to
the amount of the when-issued or delayed delivery purchase commitments until
payment is made. At April 30, 2005, there were no 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.
14
VAN KAMPEN MASSACHUSETTS VALUE MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2005 (UNAUDITED) continued
At April 30, 2005, the cost and related gross unrealized appreciation and
depreciation are as follows:
<Table>
Cost of investments for tax purposes........................ $62,027,185
===========
Gross tax unrealized appreciation........................... $ 5,956,994
Gross tax unrealized depreciation........................... (9,605)
-----------
Net tax unrealized appreciation on investments.............. $ 5,947,389
===========
</Table>
E. DISTRIBUTION OF INCOME AND GAINS The Trust declares and pays monthly
dividends from net investment income to common shareholders. Net realized gains,
if any, are distributed annually on a pro rata basis to common and preferred
shareholders. Distributions from net realized gains for book purposes may
include short-term capital gains, which are included as ordinary income for tax
purposes.
The tax character of distributions paid during the year ended October 31,
2004 was as follows:
<Table>
Distribution paid from:
Ordinary Income........................................... $61,850
Long-term capital gain.................................... -0-
-------
$61,850
=======
</Table>
As of October 31, 2004, the components of distributable earnings on a tax
basis were as follows:
<Table>
Undistributed ordinary income............................... $ 71,744
Undistributed long-term capital gain........................ 431,541
</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 April 30, 2005, the Trust recognized expenses of
approximately $1,800 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
April 30, 2005, the Trust recognized expenses of approximately $13,800
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.
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.
15
VAN KAMPEN MASSACHUSETTS VALUE MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2005 (UNAUDITED) continued
The Trust provides deferred compensation and retirement plans for its
trustees who are not officers of Van Kampen. Under the deferred compensation
plan, trustees may elect to defer all or a portion of their compensation to a
later date. Benefits under the retirement plan are payable upon retirement for a
ten-year period and are based upon each trustee's years of service to the Trust.
The maximum annual benefit per trustee under the plan is $2,500.
3. CAPITAL TRANSACTIONS
At April 30, 2005 and October 31, 2004, paid in surplus related to common shares
aggregated $37,249,960 and $37,198,192, respectively. Transactions in common
shares were as follows:
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2005 OCTOBER 31, 2004
Beginning Shares........................................ 2,683,072 2,677,347
Shares Issued Through Dividend Reinvestment............. 3,104 5,725
--------- ---------
Ending Shares........................................... 2,686,176 2,683,072
========= =========
</Table>
4. INVESTMENT TRANSACTIONS
During the period, the cost of purchases and proceeds from sales of investments,
excluding short-term investments, were $3,907,688 and $5,149,263, respectively.
5. PREFERRED SHARES
The Trust has outstanding 1,000 Auction Preferred Shares ("APS"). Dividends are
cumulative and the dividend rate is currently reset every seven days through an
auction process. The rate in effect on April 30, 2005 was 2.400%. During the six
months ended April 30, 2005, the rates ranged from 0.943% to 2.700%.
The Trust pays annual fees equivalent to .25% of the preferred share
liquidation value for the remarketing efforts associated with the preferred
auctions. These fees are included as a component of "Preferred Share
Maintenance" expense in the Statement of Operations.
The APS are redeemable at the option of the Trust in whole or in part at the
liquidation value of $25,000 per share plus accumulated and unpaid dividends.
The Trust is subject to certain asset coverage tests and the APS are subject to
mandatory redemption if the tests are not met.
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.
16
VAN KAMPEN MASSACHUSETTS VALUE MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2005 (UNAUDITED) continued
7. 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.
The Trust may invest up to 15% of its net assets in "inverse floating rate
obligations." The inverse floating rate obligations in which the Trust may
invest are typically created through a division of a fixed-rate municipal
obligation into two separate instruments, a short-term obligation and a
long-term obligation. The interest rate on the short-term obligation is set at
periodic auctions. The interest rate on the long-term obligation which the Trust
may purchase is the rate the issuer would have paid on the fixed-income
obligation, (i) plus the difference between such fixed rate and the rate on the
short-term obligation, if the short-term rate is lower than the fixed rate; or
(ii) minus such difference if the interest rate on the short-term obligation is
higher than the fixed rate. These securities have varying degrees of liquidity
and the market value of such securities generally will fluctuate in response to
changes in market rates of interest to a greater extent than the value of an
equal principal amount of a fixed rate security having similar credit quality,
redemption provisions and maturity. These securities tend to underperform the
market for fixed rate bonds in a rising interest rate environment, but tend to
outperform the market for fixed rate bonds when interest rates decline or remain
relatively stable. Although volatile, inverse floating rate obligations
typically offer the potential for yields exceeding the yields available on fixed
rate bonds with comparable credit quality, coupon, call provisions and maturity.
These securities usually permit the investor to convert the floating rate
security counterpart to a fixed rate (normally adjusted downward), and this
optional conversion feature may provide a partial hedge against rising rates if
exercised at an opportune time.
17
VAN KAMPEN MASSACHUSETTS VALUE MUNICIPAL INCOME TRUST
DIVIDEND REINVESTMENT PLAN
The Trust offers a dividend reinvestment plan (the "Plan") pursuant to which
Common Shareholders may elect to have dividends and capital gains distributions
reinvested in Common Shares of the Trust. The Trust declares dividends out of
net investment income, and will distribute annually net realized capital gains,
if any. Common Shareholders may join or withdraw from the Plan at any time.
If you decide to participate in the Plan, State Street Bank and Trust
Company, as your Plan Agent, will automatically invest your dividends and
capital gains distributions in Common Shares of the Trust for your account.
HOW TO PARTICIPATE
If you wish to participate and your shares are held in your own name, call
1-800-341-2929 for more information and a Plan brochure. If your shares are held
in the name of a brokerage firm, bank, or other nominee, you should contact your
nominee to see if it would participate in the Plan on your behalf. If you wish
to participate in the Plan, but your brokerage firm, bank or nominee is unable
to participate on your behalf, you should request that your shares be
re-registered in your own name which will enable your participation in the Plan.
HOW THE PLAN WORKS
Participants in the Plan will receive the equivalent in Common Shares valued
on the valuation date, generally at the lower of market price or net asset
value, except as specified below. The valuation date will be the dividend or
distribution payment date or, if that date is not a trading day on the national
securities exchange or market system on which the Common Shares are listed for
trading, the next preceding trading day. If the market price per Common Share on
the valuation date equals or exceeds net asset value per Common Share on that
date, the Trust will issue new Common Shares to participants valued at the
higher of net asset value or 95% of the market price on the valuation date. In
the foregoing situation, the Trust will not issue Common Shares under the Plan
below net asset value. If net asset value per Common Share on the valuation date
exceeds the market price per Common Share on that date, or if the Board of
Trustees should declare a dividend or capital gains distribution payable to the
Common Shareholders only in cash, participants in the Plan will be deemed to
have elected to receive Common Shares from the Trust valued at the market price
on that date. Accordingly, in this circumstance, the Plan Agent will, as agent
for the participants, buy the Trust's Common Shares in the open market for the
participants' accounts on or shortly after the payment date. If, before the Plan
Agent has completed its purchases, the market price exceeds the net asset value
per share of the Common Shares, the average per share purchase price paid by the
Plan Agent may exceed the net asset value
18
VAN KAMPEN MASSACHUSETTS VALUE MUNICIPAL INCOME TRUST
DIVIDEND REINVESTMENT PLAN continued
of the Trust's Common Shares, resulting in the acquisition of fewer Common
Shares than if the dividend or distribution had been paid in Common Shares
issued by the Trust. All reinvestments are in full and fractional Common Shares
and are carried to three decimal places.
Experience under the Plan may indicate that changes are desirable.
Accordingly, the Trust reserves the right to amend or terminate the Plan as
applied to any dividend or distribution paid subsequent to written notice of the
changes sent to all Common Shareholders of the Trust at least 90 days before the
record date for the dividend or distribution. The Plan also may be amended or
terminated by the Plan Agent by at least 90 days written notice to all Common
Shareholders of the Trust.
COSTS OF THE PLAN
The Plan Agent's fees for the handling of the reinvestment of dividends and
distributions will be paid by the Trust. However, each participant will pay a
pro rata share of brokerage commissions incurred with respect to the Plan
Agent's open market purchases in connection with the reinvestment of dividends
and distributions. No other charges will be made to participants for reinvesting
dividends or capital gains distributions, except for certain brokerage
commissions, as described above.
TAX IMPLICATIONS
You will receive tax information annually for your personal records and to
help you prepare your federal income tax return. The automatic reinvestment of
dividends and capital gains distributions does not relieve you of any income tax
which may be payable on dividends or distributions.
RIGHT TO WITHDRAW
Plan participants may withdraw at any time by calling 1-800-341-2929 or by
writing State Street Bank and Trust Company, P.O. Box 8200, Boston, MA
02266-8200. If you withdraw, you will receive, without charge, a share
certificate issued in your name for all full Common Shares credited to your
account under the Plan and a cash payment will be made for any fractional Common
Share credited to your account under the Plan. You may again elect to
participate in the Plan at any time by calling 1-800-341-2929 or writing to the
Trust at:
Van Kampen Funds Inc.
Attn: Closed-End Funds
2800 Post Oak Blvd.
Houston, TX 77056
19
VAN KAMPEN MASSACHUSETTS VALUE MUNICIPAL INCOME TRUST
BOARD OF TRUSTEES, OFFICERS 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
OFFICERS
MITCHELL M. MERIN
President and Chief Executive Officer
RONALD E. ROBISON
Executive Vice President and
Principal Executive Officer
JOSEPH J. MCALINDEN
Executive Vice President and
Chief Investment Officer
AMY R. DOBERMAN
Vice President
STEFANIE V. CHANG
Vice President and Secretary
JOHN L. SULLIVAN
Chief Compliance Officer
JAMES W. GARRETT
Chief Financial Officer and Treasurer
INVESTMENT ADVISER
VAN KAMPEN ASSET MANAGEMENT
1221 Avenue of the Americas
New York, New York 10020
CUSTODIAN
STATE STREET BANK
AND TRUST COMPANY
225 Franklin Street
P.O. Box 1713
Boston, Massachusetts 02110
TRANSFER AGENT
EQUISERVE TRUST COMPANY, N.A.
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.
20
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)2005 Van Kampen Funds Inc. All rights reserved.
Member NASD/SIPC.
VMV SAR 6/05 RN05-01311P-Y04/05
(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 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 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 Massachusetts Value Municipal Income Trust
By: /s/ Ronald E. Robison
----------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: June 16, 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: June 16, 2005
By: /s/ James W. Garrett
---------------------
Name: James W. Garrett
Title: Principal Financial Officer
Date: June 16, 2005