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 811-6732
Van Kampen Advantage Pennsylvania 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. Reports 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
Advantage Pennsylvania 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 TRUST SHARES MAY THEREFORE BE LESS THAN WHAT YOU PAID
FOR THEM. ACCORDINGLY, YOU CAN LOSE MONEY INVESTING IN THIS TRUST.
INCOME MAY SUBJECT CERTAIN INDIVIDUALS TO THE FEDERAL ALTERNATIVE MINIMUM
TAX (AMT).
<Table>
<Caption>
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NOT FDIC INSURED OFFER NO BANK GUARANTEE MAY LOSE VALUE
---------------------------------------------------------------------------------------
NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY NOT A DEPOSIT
---------------------------------------------------------------------------------------
</Table>
Performance Summary as of 4/30/05
<Table>
<Caption>
ADVANTAGE PENNSYLVANIA MUNICIPAL INCOME TRUST
SYMBOL: VAP
- ------------------------------------------------------------
AVERAGE ANNUAL BASED ON BASED ON
TOTAL RETURNS NAV MARKET PRICE
Since Inception (9/25/92) 7.86% 6.49%
10-year 7.71 7.40
5-year 9.23 8.25
1-year 10.54 6.67
6-month 2.55 -5.04
- ------------------------------------------------------------
</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 Pennsylvania Municipal Bond Index is a broad-based
statistical composite of Pennsylvania municipal bonds. 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 Advantage Pennsylvania Municipal Income Trust is managed by the
Adviser's Municipal Fixed Income team.(1) Current members include Dennis
Pietrzak and John Reynoldson, Executive Directors of the Adviser; and Robert
Wimmel, Vice President 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.
The most significant development in the Pennsylvania municipal market over the
period was the ongoing trend of refundings of municipal securities by issuers.
Municipal borrowers were able to take advantage of rising short-term rates and
relatively stable long-term rates, which in turn allowed them to refund
outstanding debt. As a result, the Pennsylvania market saw a wave of
refinancings, especially in education-related sectors.
(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 Pennsylvania
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>
- -----------------------------------------------------------------------
BASED ON BASED ON LEHMAN BROTHERS
NAV MARKET PRICE PENNSYLVANIA MUNICIPAL BOND INDEX
2.55% -5.04% 1.82%
- -----------------------------------------------------------------------
</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 in which the trust invested.
One of our key strategies in managing the trust was to position it for rising
interest rates. This approach was largely the result of our analysis of interest
rates, which remained relatively low by historical standards even after rising
from their multi-decade lows earlier. First, we kept the trust's duration (a
measure of interest-rate sensitivity) below that of its benchmark. Second, to
limit the trust's exposure to areas of the market that would be most likely
susceptible to rising rates, we also trimmed the trust's shorter-maturity bonds.
We reinvested the proceeds from those sales into bonds with premium coupons and
maturities between 20 and 30 years. In addition to offering relatively
attractive income streams, these securities positioned the trust to benefit from
any future flattening of the yield curve.
We kept the trust's exposure well diversified across the major sectors of the
Pennsylvania municipal market. Much of our relative-value trading activity was
focused on selling issues that had been pre-refunded, many of which were in the
public education sector; and purchasing what we believed were more attractive
securities in the public education sector. The trust remained focused
3
on investment-grade securities, with 100 percent of the portfolio rated BBB or
higher at the end of the period.
There is no guarantee the security sectors mentioned will continue to perform
well or be held by the trust in the future.
<Table>
RATINGS ALLOCATIONS AS OF 4/30/05 TOP FIVE SECTORS AS OF 4/30/05
AAA/Aaa 75.4% Public Education 18.3%
AA/Aa 8.9 Higher Education 18.0
A/A 9.4 Water & Sewer 16.8
BBB/Baa 6.3 Health Care 11.9
General Purpose 8.2
</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.
5
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.
6
VAN KAMPEN ADVANTAGE PENNSYLVANIA MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2005 (UNAUDITED)
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
MUNICIPAL BONDS 148.9%
PENNSYLVANIA 147.4%
$1,000 Allegheny Cnty, PA Higher Ed Bldg Carnegie
Mellon Univ..................................... 5.125% 03/01/32 $ 1,045,360
1,500 Allegheny Cnty, PA Higher Ed Bldg Carnegie
Mellon Univ..................................... 5.250 03/01/32 1,586,940
905 Allegheny Cnty, PA Residential Mtg Single Family
Ser KK-2 (AMT) (GNMA Collateralized)............ 5.750 05/01/33 941,535
1,000 Allegheny Cnty, PA San Auth Swr (MBIA Insd)..... 5.750 12/01/13 1,128,150
1,830 Allegheny Cnty, PA San Auth Swr (Prerefunded @
12/01/10) (MBIA Insd)........................... 5.750 12/01/18 2,070,810
2,000 Allegheny Cnty, PA San Auth Swr Rev (Prerefunded
@ 12/01/10) (MBIA Insd)......................... 5.500 12/01/24 2,237,860
2,640 Bensalem Twp, PA Sch Dist (FGIC Insd) (a)....... 5.000 08/15/18 2,842,646
1,000 Bethlehem, PA Auth Wtr Gtd (FSA Insd)........... 5.000 11/15/19 1,083,550
1,150 Bucks Cnty, PA Wtr & Swr Rev Neshaminy
Interceptor Ser A (AMBAC Insd) (a).............. 5.375 06/01/14 1,278,869
1,215 Bucks Cnty, PA Wtr & Swr Rev Neshaminy
Interceptor Ser A (AMBAC Insd) (a).............. 5.375 06/01/15 1,344,811
785 Carbon Cnty, PA Indl Dev Auth Panther Creek
Partn Proj Rfdg (AMT) (LOC: Paribas & Union Bk
of CA Intl)..................................... 6.650 05/01/10 851,592
1,500 Central Dauphin, PA Sch Dist (FSA Insd)......... 5.000 12/01/19 1,618,170
5,000 Dauphin Cnty, PA Genl Auth Hosp Rev Hapsco
Western PA Hosp Proj B Rfdg (Escrowed to
Maturity) (MBIA Insd)........................... 6.250 07/01/16 5,827,450
1,000 Delaware Cnty, PA Auth College Neumann College
Rfdg............................................ 6.000 10/01/31 1,052,910
1,500 Delaware Vly, PA Regl Fin Auth.................. 5.750 07/01/17 1,729,770
2,735 Exeter Twp, PA Sch Dist (FGIC Insd)............. 5.000 05/15/25 2,907,223
2,000 Greater Latrobe, PA Sch Auth (Prerefunded @
04/01/12) (FGIC Insd)........................... 5.250 04/01/17 2,234,940
1,100 Harrisburg, PA Auth Res Gtd Sub Ser D-2
(FSA Insd)...................................... 5.000 12/01/33 1,197,779
1,345 Jenkintown, PA Sch Dist Ser A (FGIC Insd)....... 5.000 05/15/28 1,402,176
1,360 Lehigh Northampton PA Aprt Lehigh Vly Arpt Sys
Ser A Rfdg (AMT) (MBIA Insd) (a)................ 5.000 01/01/22 1,414,386
675 Lehigh Northampton PA Arpt Lehigh Vly Arpt Sys
Ser A Rfdg (AMT) (MBIA Insd).................... 5.000 01/01/23 700,387
1,000 Lycoming Cnty, PA Auth College Rev PA College of
Technology (AMBAC Insd)......................... 5.350 07/01/26 1,072,570
2,500 Mercer Cnty, PA Indl Dev Auth Wtr Fac
Philadelphia Sub Corp (AMT) (MBIA Insd)......... 6.000 07/01/30 2,759,000
1,255 Mifflin Cnty, PA Ser A (FGIC Insd) (b).......... 5.000 09/01/31 1,307,158
1,000 Monroe Cnty, PA Hosp Auth Rev Hosp Pocono Med
Ctr............................................. 6.000 01/01/43 1,054,830
1,205 Monroeville, PA Muni Auth San Ser B
(MBIA Insd)..................................... 5.250 12/01/18 1,327,139
</Table>
See Notes to Financial Statements 7
VAN KAMPEN ADVANTAGE PENNSYLVANIA MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2005 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
PENNSYLVANIA (CONTINUED)
$1,350 Monroeville, PA Muni Auth San Ser B
(MBIA Insd) (a)................................. 5.250% 12/01/20 $ 1,471,459
1,500 Montgomery Cnty, PA Higher Ed & Hlth Auth Hosp
Rev Abington Mem Hosp Ser A..................... 5.125 06/01/32 1,520,745
1,000 Montgomery Cnty, PA Indl Dev Auth Rev Res Rec
Montenay Proj Ser A (MBIA Insd)................. 5.250 11/01/14 1,120,880
1,000 Moon Area Sch Dist PA (FSA Insd)................ 5.000 11/15/25 1,067,480
2,385 Pennsylvania Hsg Fin Agy Single Family Mtg
Ser 66A (AMT)................................... 5.650 04/01/29 2,496,427
2,000 Pennsylvania St Higher Ed Fac Auth Rev
Drexel Univ..................................... 5.500 05/01/17 2,212,780
1,000 Pennsylvania St Higher Ed Fac Auth Rev La Salle
Univ............................................ 5.500 05/01/34 1,046,950
1,000 Pennsylvania St Higher Ed Fac Auth Rev Thomas
Jefferson....................................... 5.375 01/01/25 1,076,330
1,500 Pennsylvania St Higher Ed Fac Auth Rev Univ
Sciences Philadelphia Ser A (XLCA Insd)......... 5.000 11/01/36 1,564,680
1,500 Pennsylvania St Higher Ed Fac Clarion Univ Fndtn
Inc Ser A (XLCA Insd)........................... 5.250 07/01/18 1,623,000
1,500 Pennsylvania St Higher Ed Fac Clarion Univ Fndtn
Inc Ser A (XLCA Insd)........................... 5.000 07/01/33 1,559,040
1,000 Pennsylvania St Higher Ed Fac Messiah College
Ser AA3 (Radian Insd)........................... 5.500 11/01/22 1,083,990
1,560 Pennsylvania St Higher Ed Fac Philadelphia
College Osteopathic Med (a)..................... 5.000 12/01/16 1,674,145
1,850 Pennsylvania St Higher Ed UPMC Hlth Sys Ser A... 6.000 01/15/31 2,035,740
3,015 Pennsylvania St Tpk Commn Ser T Rfdg
(FGIC Insd)..................................... 5.500 12/01/10 3,362,810
1,970 Pennsylvania St Univ Rfdg....................... 5.250 03/01/18 2,164,774
1,500 Philadelphia, PA (FSA Insd)..................... 5.250 09/15/25 1,597,275
1,005 Philadelphia, PA Auth Indl Dev Amern College of
Physicians...................................... 5.500 06/15/27 1,056,607
2,500 Philadelphia, PA Auth Indl Dev Philadelphia Arpt
Sys Proj Ser A (AMT) (FGIC Insd)................ 5.250 07/01/28 2,572,750
4,250 Philadelphia, PA Gas Wks Rev 12th Ser B
(Escrowed to Maturity) (MBIA Insd).............. 7.000 05/15/20 5,247,177
5,000 Pittsburgh & Allegheny Cnty, PA Pub Aud Regl
Asset Dist Sales Tax (AMBAC Insd)............... 5.000 02/01/24 5,285,500
1,000 Pittsburgh, PA Pub Pkg Auth Rev Ser B
(FGIC Insd)..................................... 5.000 12/01/23 1,066,190
2,500 Pittsburgh, PA Ser A (AMBAC Insd)............... 5.500 09/01/17 2,753,700
2,000 Pittsburgh, PA Ser A (Prerefunded @ 09/01/09)
(FGIC Insd)..................................... 5.750 09/01/21 2,189,280
2,000 Pittsburgh, PA Wtr & Swr Rfdg (FGIC Insd)....... 6.500 09/01/13 2,379,720
1,000 Southcentral, PA Gen Auth Rev Wellspan Hlth
Oblig (MBIA Insd)............................... 5.375 05/15/28 1,067,150
</Table>
8 See Notes to Financial Statements
VAN KAMPEN ADVANTAGE PENNSYLVANIA MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2005 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
PENNSYLVANIA (CONTINUED)
$ 685 State Pub Sch Bldg Auth PA Sch Conneaut Sch Dist
(FGIC Insd)..................................... 5.250% 11/01/18 $ 756,610
1,220 State Pub Sch Bldg Auth PA Sch Conneaut Sch Dist
(Prerefunded @ 11/01/13) (FGIC Insd)............ 5.250 11/01/18 1,375,123
1,205 State Pub Sch Bldg Auth PA Sch Tuscarora Sch
Dist Proj (FSA Insd) (a)........................ 5.250 04/01/20 1,321,801
1,270 State Pub Sch Bldg Auth PA Sch Tuscarora Sch
Dist Proj (FSA Insd) (a)........................ 5.250 04/01/21 1,393,101
1,500 Susquehanna Area Regl Arpt Auth PA Arpt Ser D... 5.375 01/01/18 1,539,210
1,850 Trinity Area Sch Dist PA (FGIC Insd)............ 5.250 11/01/20 2,040,568
1,285 Unity Twp, PA Muni Auth Swr Rev (FSA Insd)...... 5.000 12/01/24 1,369,694
1,500 West Shore, PA Area Hosp Auth Holy Spirit Hosp
Proj............................................ 6.250 01/01/32 1,603,830
1,075 Wilson, PA Sch Dist Second Ser (FSA Insd)....... 5.375 05/15/16 1,188,198
------------
108,902,725
------------
U. S. VIRGIN ISLANDS 1.5%
1,000 Virgin Islands Pub Fin Auth Rev Gross Rcpt Taxes
Ln Nt Ser A (ACA Insd).......................... 6.125 10/01/29 1,119,510
------------
TOTAL LONG-TERM INVESTMENTS 148.9%
(Cost $102,068,218)....................................................... 110,022,235
SHORT-TERM INVESTMENTS 4.9%
(Cost $3,600,000)......................................................... 3,600,000
------------
TOTAL INVESTMENTS 153.8%
(Cost $105,668,218)....................................................... 113,622,235
OTHER ASSETS IN EXCESS OF LIABILITIES 0.4%................................. 294,017
PREFERRED SHARES (INCLUDING ACCRUED DISTRIBUTIONS) (54.2%)................. (40,029,099)
------------
NET ASSETS APPLICABLE TO COMMON SHARES 100.0%.............................. $ 73,887,153
============
</Table>
Percentages are calculated as a percentage of net assets applicable to common
shares.
(a) The Trust owns 100% of the bond issuance.
(b) Security purchased on a when-issued or delayed delivery basis.
ACA--American Capital Access
AMBAC--AMBAC Indemnity Corp.
AMT--Alternative Minimum Tax
FGIC--Financial Guaranty Insurance Co.
See Notes to Financial Statements 9
VAN KAMPEN ADVANTAGE PENNSYLVANIA MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2005 (UNAUDITED) continued
FSA--Financial Security Assurance Inc.
GNMA--Government National Mortgage Association
LOC--Letter of Credit
MBIA--Municipal Bond Investors Assurance Corp.
Radian--Radian Asset Assurance
XLCA--XL Capital Assurance Inc.
10 See Notes to Financial Statements
VAN KAMPEN ADVANTAGE PENNSYLVANIA MUNICIPAL INCOME TRUST
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
April 30, 2005 (Unaudited)
<Table>
ASSETS:
Total Investments (Cost $105,668,218)....................... $113,622,235
Cash........................................................ 72,404
Receivables:
Interest.................................................. 1,771,984
Investments Sold.......................................... 85,000
Other....................................................... 316
------------
Total Assets............................................ 115,551,939
------------
LIABILITIES:
Payables:
Investments Purchased..................................... 1,286,551
Investment Advisory Fee................................... 51,051
Income Distributions--Common Shares....................... 13,345
Other Affiliates.......................................... 10,069
Trustees' Deferred Compensation and Retirement Plans........ 221,117
Accrued Expenses............................................ 53,554
------------
Total Liabilities....................................... 1,635,687
Preferred Shares (including accrued distributions).......... 40,029,099
------------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $ 73,887,153
============
NET ASSET VALUE PER COMMON SHARE
($73,887,153 divided by 4,368,552 shares outstanding)....... $ 16.91
============
NET ASSETS CONSIST OF:
Common Shares ($.01 par value with an unlimited number of
shares authorized, 4,368,552 shares issued and
outstanding).............................................. $ 43,686
Paid in Surplus............................................. 64,233,585
Net Unrealized Appreciation................................. 7,954,017
Accumulated Net Realized Gain............................... 1,336,310
Accumulated Undistributed Net Investment Income............. 319,555
------------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $ 73,887,153
============
PREFERRED SHARES ($.01 par value, authorized 100,000,000
shares, 1,600 issued with liquidation preference of
$25,000 per share)........................................ $ 40,000,000
============
NET ASSETS INCLUDING PREFERRED SHARES....................... $113,887,153
============
</Table>
See Notes to Financial Statements 11
VAN KAMPEN ADVANTAGE PENNSYLVANIA MUNICIPAL INCOME TRUST
FINANCIAL STATEMENTS continued
Statement of Operations
For the Six Months Ended April 30, 2005 (Unaudited)
<Table>
INVESTMENT INCOME:
Interest.................................................... $ 2,667,858
-----------
EXPENSES:
Investment Advisory Fee..................................... 310,160
Preferred Share Maintenance................................. 57,110
Legal....................................................... 17,738
Trustees' Fees and Related Expenses......................... 17,350
Custody..................................................... 6,407
Other....................................................... 64,336
-----------
Total Expenses.......................................... 473,101
-----------
NET INVESTMENT INCOME....................................... $ 2,194,757
===========
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Gain........................................... $ 1,336,161
-----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 9,549,893
End of the Period......................................... 7,954,017
-----------
Net Unrealized Depreciation During the Period............... (1,595,876)
-----------
NET REALIZED AND UNREALIZED LOSS............................ $ (259,715)
===========
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS..................... $ (413,023)
===========
NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM
OPERATIONS................................................ $ 1,522,019
===========
</Table>
12 See Notes to Financial Statements
VAN KAMPEN ADVANTAGE PENNSYLVANIA 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.................................... $ 2,194,757 $ 4,527,804
Net Realized Gain........................................ 1,336,161 829,941
Net Unrealized Appreciation/Depreciation During the
Period................................................. (1,595,876) 1,381,769
Distributions to Preferred Shareholders:
Net Investment Income.................................. (351,514) (340,314)
Net Realized Gain...................................... (61,509) (141,213)
----------- -----------
Change in Net Assets Applicable to Common Shares from
Operations............................................. 1,522,019 6,257,987
Distributions to Common Shareholders:
Net Investment Income.................................. (1,887,035) (4,293,918)
Net Realized Gain...................................... (768,356) (1,876,119)
----------- -----------
NET CHANGE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM
INVESTMENT ACTIVITIES.................................. (1,133,372) 87,950
NET ASSETS APPLICABLE TO COMMON SHARES:
Beginning of the Period.................................. 75,020,525 74,932,575
----------- -----------
End of the Period (Including accumulated undistributed
net investment income of $319,555 and $363,347,
respectively).......................................... $73,887,153 $75,020,525
=========== ===========
</Table>
See Notes to Financial Statements 13
VAN KAMPEN ADVANTAGE PENNSYLVANIA 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................... $ 17.17 $ 17.15 $ 17.24
------- ------- -------
Net Investment Income.................................... .50 1.03 1.11
Net Realized and Unrealized Gain/Loss.................... (.06) .51 .19
Common Share Equivalent of Distributions Paid to
Preferred Shareholders:
Net Investment Income.................................. (.08) (.08) (.08)
Net Realized Gain...................................... (.01) (.03) (.02)
------- ------- -------
Total from Investment Operations........................... .35 1.43 1.20
Distributions Paid to Common Shareholders:
Net Investment Income.................................. (.43) (.98) (1.09)
Net Realized Gain...................................... (.18) (.43) (.20)
------- ------- -------
NET ASSET VALUE, END OF THE PERIOD......................... $ 16.91 $ 17.17 $ 17.15
======= ======= =======
Common Share Market Price at End of the Period............. $ 14.50 $ 15.90 $ 16.23
Total Return (a)........................................... -5.04%* 6.95% 6.54%
Net Assets Applicable to Common Shares at End of the Period
(In millions)............................................ $ 73.9 $ 75.0 $ 74.9
Ratio of Expenses to Average Net Assets Applicable to
Common Shares (b)........................................ 1.29% 1.43% 1.43%
Ratio of Net Investment Income to Average Net Assets
Applicable to Common Shares (b).......................... 6.00% 6.13% 6.40%
Portfolio Turnover......................................... 10%* 8% 31%
SUPPLEMENTAL RATIOS:
Ratio of Expenses to Average Net Assets Including Preferred
Shares (b)............................................... .84% .93% .93%
Ratio of Net Investment Income to Average Net Assets
Applicable to Common Shares (c).......................... 5.04% 5.67% 5.95%
SENIOR SECURITIES:
Total Preferred Shares Outstanding......................... 1,600 1,600 1,600
Asset Coverage Per Preferred Share (d)..................... $71,198 $71,912 $71,846
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)Total return assumes an investment at the common share market price at the
beginning of the period indicated, reinvestment of all distributions for the
period in accordance with the Trust's dividend reinvestment plan, and sale of
all shares at the closing common share market price at the end of the period
indicated.
(b)Ratios do not reflect the effect of dividend payments to preferred
shareholders.
(c)Ratios reflect the effect of dividend payments to preferred shareholders.
(d)Calculated by subtracting the Trust's total liabilities (not including the
preferred shares) from the Trust's total assets and dividing this by the
number of preferred shares outstanding.
(e)As required, effective November 1, 2001, the Trust has adopted the provisions
of the AICPA Audit and Accounting Guide for Investment Companies and began
accreting market discount on fixed income securities. The effect of this
change for the year ended October 31, 2002 was to increase net investment
income per share by less than $.01, decrease net realized and unrealized
gains and losses per share by less than $.01 and increase the ratio of net
investment income to average net assets by .02%. Per share, ratios and
supplemental data for periods prior to October 31, 2002 have not been
restated to reflect this change in presentation.
14
<Table>
<Caption>
Year Ended October 31,
- ----------------------------------------------------------------------------------------
2002 (e) 2001 2000 1999 1998 1997 1996 1995
- ----------------------------------------------------------------------------------------
$ 17.28 $ 16.40 $ 16.18 $ 17.66 $ 17.23 $ 16.72 $ 16.69 $ 14.63
------- ------- -------- ------- -------- -------- -------- --------
1.19 1.21 1.27 1.24 1.24 1.25 1.24 1.25
.08 1.15 .28 (1.46) .47 .54 .04 2.06
(.12) (.25) (.37) (.30) (.32) (.32) (.32) (.36)
(.03) (.09) -0- -0- -0- -0- -0- -0-
------- ------- -------- ------- -------- -------- -------- --------
1.12 2.02 1.18 (.52) 1.39 1.47 .96 2.95
(1.05) (.93) (.96) (.96) (.96) (.96) (.93) (.89)
(.11) (.21) -0- -0- -0- -0- -0- -0-
------- ------- -------- ------- -------- -------- -------- --------
$ 17.24 $ 17.28 $ 16.40 $ 16.18 $ 17.66 $ 17.23 $ 16.72 $ 16.69
======= ======= ======== ======= ======== ======== ======== ========
$ 16.45 $ 15.75 $14.9375 $14.625 $ 17.25 $16.4375 $ 15.125 $ 14.00
11.96% 13.31% 9.10% -10.14% 11.03% 15.38% 14.85% 23.03%
$ 75.3 $ 75.4 $ 71.5 $ 70.6 $ 77.0 $ 75.2 $ 72.9 $ 72.8
1.50% 1.71% 1.78% 1.69% 1.67% 1.70% 1.77% 1.77%
7.02% 7.12% 7.89% 7.22% 7.11% 7.41% 7.48% 7.96%
19% 17% 31% 7% 3% 2% 2% 9%
.97% 1.10% 1.13% 1.10% 1.10% 1.10% 1.14% 1.12%
6.32% 5.70% 5.59% 5.45% 5.25% 5.48% 5.52% 5.68%
1,600 1,600 1,600 1,600 800 800 800 800
$72,101 $72,107 $ 69,704 $69,097 $146,292 $143,968 $141,175 $141,025
$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 15
VAN KAMPEN ADVANTAGE PENNSYLVANIA MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2005 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen Advantage Pennsylvania 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 a high level of current income exempt from federal and
Pennsylvania income taxes and, where possible under local law, local income and
personal property taxes, consistent with preservation of capital. The Trust will
invest substantially all of its assets in Pennsylvania municipal securities
rated investment grade at the time of investment. The Trust commenced investment
operations on September 25, 1992.
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, the Trust had $1,286,551 of when-issued and
delayed delivery purchase commitments.
C. INVESTMENT INCOME Interest income is recorded on an accrual basis. Bond
premium is amortized and discount is accreted over the expected life of each
applicable security.
D. FEDERAL INCOME TAXES It is the Trust's policy to comply with the requirements
of 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.
16
VAN KAMPEN ADVANTAGE PENNSYLVANIA 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........................ $105,596,584
============
Gross tax unrealized appreciation........................... $ 8,036,599
Gross tax unrealized depreciation........................... (10,948)
------------
Net tax unrealized appreciation on investments.............. $ 8,025,651
============
</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>
Distributions paid from:
Ordinary income........................................... $ 155,669
Long-term capital gain.................................... 1,897,804
----------
$2,053,473
==========
</Table>
As of October 31, 2004, the components of distributable earnings on a tax
basis were as follows:
<Table>
Undistributed ordinary income............................... $38,539
Undistributed long-term capital gain........................ 791,896
</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 $3,200 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 $19,100
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, on 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.
17
VAN KAMPEN ADVANTAGE PENNSYLVANIA 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. INVESTMENT TRANSACTIONS
During the period, the cost of purchases and proceeds from sales of investments,
excluding short-term investments, were $11,052,397 and $12,738,146,
respectively.
4. PREFERRED SHARES
The Trust has outstanding 1,600 Auction Preferred Shares ("APS"). Dividends are
cumulative and the dividend rate is currently reset every 28 days through an
auction process. The rate in effect on April 30, 2005 was 2.950%. During the six
months ended April 30, 2005, the rates ranged from 1.450% to 2.950%.
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 on 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.
5. 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.
6. 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
18
VAN KAMPEN ADVANTAGE PENNSYLVANIA MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2005 (UNAUDITED) continued
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.
19
VAN KAMPEN ADVANTAGE PENNSYLVANIA 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.
VAP SAR 6/04 RN05-01293P-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 Advantage Pennsylvania 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