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 811-6538
Van Kampen Trust For Investment Grade Florida Municipals
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
1221 Avenue of the Americas, New York, New York 10020
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Ronald Robison
1221 Avenue of the Americas, New York, New York 10020
- --------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: 212-762-4000
Date of fiscal year end: 10/31
Date of reporting period: 4/30/05
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
Trust for Investment Grade Florida Municipals performed during the
semiannual period. The portfolio management team will provide an overview
of the market conditions and discuss some of the factors that affected
investment performance during the reporting period. In addition, this
report includes the trust's financial statements and a list of trust
investments as of April 30, 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>
---------------------------------------------------------------------------------------
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>
TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
SYMBOL: VTF
- ------------------------------------------------------------
AVERAGE ANNUAL BASED ON BASED ON
TOTAL RETURNS NAV MARKET PRICE
Since Inception (3/27/92) 8.15% 6.80%
10-year 7.72 7.30
5-year 9.83 9.69
1-year 11.43 3.99
6-months 2.71 -2.06
- ------------------------------------------------------------
</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 Florida Municipal Bond Index is a broad-based statistical
composite of Florida 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 Trust for Investment Grade Florida Municipals is managed by the
Adviser's Municipal Fixed Income team.(1) Current members include Thomas Byron
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 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.
Florida's fiscal condition continues to improve. Revenues exceed projections,
largely due to higher-than-expected sales tax collections. The state has not
drawn from its rainy day fund. The state therefore has a reserve cushion to
address any budget problems, should they arise. Moreover, the state's budget
stabilization reserve fund is fully funded and other reserves are available to
handle the state's share of hurricane costs. Against this backdrop, all three
rating agencies upgraded Florida at the beginning of this year, citing a stable
(1)Team members may change without notice at any time.
2
outlook due to conservative fiscal management throughout the recession and a
rebound in the economy.
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 Florida
Municipal Bond Index. On a market price basis, the fund underperformed its
benchmark.
TOTAL RETURNS FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2005
<Table>
<Caption>
- -------------------------------------------------------------
BASED ON BASED ON LEHMAN BROTHERS FLORIDA
NAV MARKET PRICE MUNICIPAL BOND INDEX
2.71% -2.06% 2.01%
- -------------------------------------------------------------
</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 we invested in.
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 throughout
most of the period. 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. These sales focused on bonds with maturities of
15 years and shorter, with greatest emphasis on bonds with maturities of 10
years and less. We reinvested the proceeds from those sales into bonds with
maturities 20 years and longer, predominantly 25 years and longer. In addition
to offering relatively attractive income streams, these longer-maturity
securities positioned the trust to benefit from any future flattening of the
yield curve.
3
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 approximately 85 percent of its exposure at the end of the
period in bonds rated AA or better. However, as high-yield spreads have
continued to tighten, the trust's high-quality bent tempered performance during
the reporting period. The Fund did include a small allocation to BBB rated
securities; representing 3 percent of the portfolio at the end of the reporting
period.
Much of our relative-value trading activity was focused on selling issues that
had been pre-refunded. We kept the trust well diversified across the major
sectors of the municipal bond market. The top three sector exposures at the end
of the period were public education, water and sewer, 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>
RATINGS ALLOCATION AS OF 4/30/05 TOP 5 SECTORS AS OF 4/30/05
AAA/Aaa 75.1% Public Education 18.9%
AA/Aa 9.5 Water & Sewer 16.3
A/A 12.3 Transportation 13.5
BBB/Baa 3.1 General Purpose 11.3
Health Care 10.8
</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 fund provides a complete schedule of portfolio holdings
in its semiannual and annual reports within 60 days of the end of the
fund's second and fourth fiscal quarters by filing the schedule
electronically with the Securities and Exchange Commission (SEC). The
semiannual reports are filed on Form N-CSRS and the annual reports are
filed on Form N-CSR. Van Kampen also delivers the semiannual and annual
reports to fund shareholders, and makes these reports available on its
public web site, www.vankampen.com. In addition to the semiannual and
annual reports that Van Kampen delivers to shareholders and makes
available through the Van Kampen public web site, each fund files a
complete schedule of portfolio holdings with the SEC for the fund's first
and third fiscal quarters on Form N-Q. Van Kampen does not deliver the
reports for the first and third fiscal quarters to shareholders, nor are
the reports posted to the Van Kampen public web site. You may, however,
obtain the Form N-Q filings (as well as the Form N-CSR and N-CSRS
filings) by accessing the SEC's web site, http://www.sec.gov. You may
also review and copy them at the SEC's Public Reference Room in
Washington, DC. Information on the operation of the SEC's Public
Reference Room may be obtained by calling the SEC at 1-800-SEC-0330. You
can also request copies of these materials, upon payment of a duplicating
fee, by electronic request at the SEC's e-mail address
(publicinfo@sec.gov) or by writing the Public Reference section of the
SEC, Washington, DC 20549-0102.
You may obtain copies of a fund's fiscal quarter filings by contacting
Van Kampen Client Relations at 1-800-847-2424.
PROXY VOTING POLICIES AND PROCEDURES AND PROXY VOTING RECORD
The fund's policies and procedures with respect to the voting of proxies
relating to the fund's portfolio securities and information on how the
fund voted proxies relating to portfolio securities during the most
recent twelve-month period ended June 30 is available without charge,
upon request, by 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 TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2005 (UNAUDITED)
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
MUNICIPAL BONDS 151.7%
FLORIDA 144.0%
$1,000 Bay Cnty, FL Wtr Sys Rev Rfdg (AMBAC Insd)...... 5.000% 09/01/29 $ 1,049,970
2,000 Broward Cnty, FL Wtr & Swr Util Rev Ser A....... 5.000 10/01/26 2,120,860
750 Capital Tr Agy FL Rev Ft Lauderdale Proj
(AMT)........................................... 5.750 01/01/32 754,905
2,500 Coral Gables, FL Hlth Fac Auth Hosp Rev
Baptist Hlth South FL (FSA Insd)................ 5.000 08/15/29 2,616,175
2,640 Daytona Beach, FL Util Sys Rev Ser D Rfdg (FSA
Insd)........................................... 5.250 11/15/15 2,909,914
400 Escambia Cnty, FL Hlth Fac Auth Rev (AMBAC
Insd)........................................... 5.950 07/01/20 406,204
1,000 Escambia Cnty, FL Util Auth Util Sys Rev (FGIC
Insd)........................................... 5.250 01/01/29 1,059,120
1,250 Florida Agric & Mechanical Univ Rev Student Apt
Fac (MBIA Insd)................................. 6.500 07/01/23 1,253,800
1,750 Florida Hsg Fin Agy Hsg Willow Lake Apts Ser J-1
(AMT) (AMBAC Insd).............................. 5.350 07/01/27 1,793,627
425 Florida Hsg Fin Corp Rev Homeowner Mtg Ser 4
(AMT) (FSA Insd)................................ 6.250 07/01/22 437,023
1,800 Florida Muni Ln Council Rev Ser A (MBIA Insd)... 5.250 11/01/15 1,982,844
3,850 Florida Muni Ln Council Rev Ser A (MBIA Insd)... 5.000 02/01/35 4,042,269
2,000 Florida Ports Fin Comm Rev St Trans Tr Fd (AMT)
(MBIA Insd)..................................... 5.375 06/01/27 2,079,660
3,350 Florida Ports Fin Comm Rev St Trans Tr Fd
Intermodal Pgm (AMT) (FGIC Insd)................ 5.500 10/01/29 3,568,454
2,000 Florida St Brd of Ed Cap Outlay Pub Ed Ser C
(Prerefunded @ 6/01/10) (FGIC Insd)............. 5.750 06/01/29 2,266,900
1,600 Florida St Brd of Ed Cap Outlay Pub Ed Ser C
Rfdg............................................ 5.000 06/01/16 1,694,544
3,000 Florida St Brd of Ed Cap Outlay Pub Ed Ser D
Rfdg............................................ 5.750 06/01/22 3,335,700
2,000 Florida St Brd of Ed Lottery Rev Ser A (FGIC
Insd)........................................... 5.250 07/01/17 2,185,860
1,500 Florida St Brd of Ed Lottery Rev Ser A (FGIC
Insd)........................................... 5.500 07/01/17 1,661,145
2,000 Florida St Brd of Ed Pub Ed Ser A............... 5.000 06/01/32 2,090,680
1,000 Florida St Brd of Ed Rev FL St Univ Hsg Fac Ser
A (MBIA Insd)................................... 5.000 05/01/29 1,039,810
2,000 Florida St Brd of Regt Hsg Rev Univ FL (FGIC
Insd)........................................... 5.500 07/01/28 2,179,360
1,000 Florida St Correctional Privatization Commn Ctf
Part (MBIA Insd)................................ 5.375 08/01/14 1,115,860
1,500 Florida St Dept of Trans........................ 5.000 07/01/32 1,570,575
2,500 Florida St Dept Trans Right of Way Ser A........ 5.250 07/01/21 2,758,250
1,000 Florida St Muni Pwr Agy Rev Stanton Proj Rfdg
(FSA Insd)...................................... 5.500 10/01/14 1,125,670
500 Gainesville, FL Util Sys Rev (Escrowed to
Maturity)....................................... 8.125 10/01/14 602,230
1,310 Gainesville, FL Util Sys Rev Ser A (FSA Insd)
(a)............................................. 5.250 10/01/19 1,445,768
500 Gulf Breeze, FL Rev Loc Govt (FGIC Insd)........ 5.650 12/01/20 538,790
</Table>
6 See Notes to Financial Statements
VAN KAMPEN TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2005 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
FLORIDA (CONTINUED)
$ 730 Gulf Breeze, FL Rev Loc Govt (FGIC Insd)........ 5.750% 12/01/20 $ 785,590
1,000 Highlands Cnty, FL Hlth Fac Auth Rev Hosp
Adventist Hlth Sys Ser D........................ 5.375 11/15/35 1,045,950
1,500 Highlands Cnty, FL Hlth Fac Auth Rev Hosp
Adventist/Sunbelt Ser A......................... 6.000 11/15/31 1,625,610
750 Hillsborough Cnty, FL Assmt Rev Capacity Assmt
Spl (FSA Insd).................................. 5.000 03/01/15 807,015
750 Hillsborough Cnty, FL Assmt Rev Capacity Assmt
Spl (FSA Insd).................................. 5.000 09/01/15 807,015
1,000 Hillsborough Cnty, FL Indl Dev Auth Hosp Rev
Tampa Gen Hosp Proj Ser B....................... 5.250 10/01/28 1,033,280
1,000 Hillsborough Cnty, FL Port Dist Tampa Port Auth
Proj Ser A (AMT) (MBIA Insd).................... 5.375 06/01/27 1,067,010
690 Hollywood, FL Cmnty Redev Agy Beach Cra......... 5.625 03/01/24 734,139
2,230 Jacksonville, FL Cap Impt Rev Crossover Ser B
Rfdg (AMBAC Insd)............................... 5.000 10/01/12 2,463,793
750 Jacksonville, FL Econ Dev Commn Indl Dev Rev
Metro Pkg Solutions Proj (AMT) (ACA Insd)....... 5.500 10/01/30 784,170
2,500 Jacksonville, FL Excise Tax Rev Ser B (AMBAC
Insd)........................................... 5.375 10/01/20 2,740,650
2,000 Jacksonville, FL Rev Better Jacksonville (MBIA
Insd)........................................... 5.250 10/01/21 2,207,280
1,000 Jea, FL Wtr & Swr Sys Rev Ser A (FGIC Insd)..... 5.000 10/01/21 1,077,180
7,000 Lakeland, FL Elec & Wtr Rev (Escrowed to
Maturity)....................................... * 10/01/13 5,093,900
2,230 Lakeland, FL Elec & Wtr Rev (Escrowed to
Maturity)....................................... 5.750 10/01/19 2,452,086
1,000 Lakeland, FL Hosp Sys Rev Lakeland Regl Hlth
Sys............................................. 5.500 11/15/32 1,046,780
1,000 Lee Cnty, FL Arpt Rev Ser A (AMT) (FSA Insd).... 5.750 10/01/22 1,094,370
1,500 Lee Cnty, FL Arpt Rev Ser B (FSA Insd).......... 5.750 10/01/33 1,662,075
500 Leesburg, FL Hosp Rev Leesburg Regl Med Ctr
Proj............................................ 5.500 07/01/32 513,815
1,600 Leesburg, FL Util Rev (FGIC Insd)............... 5.000 10/01/34 1,684,064
1,600 Manatee Cnty, FL Pub Util Rev Impt & Rfdg (MBIA
Insd)........................................... 5.125 10/01/21 1,746,832
650 Marion Cnty, FL Hosp Dist Rev Hlth Sys Munroe
Reg Impt & Rfdg................................. 5.500 10/01/29 675,805
2,135 Marion Cnty, FL Sch Brd Ctf (FSA Insd).......... 5.250 06/01/19 2,336,331
260 Miami Beach, FL Stormwtr Rev (FGIC Insd)........ 5.750 09/01/14 292,466
1,045 Miami Beach, FL Stormwtr Rev (FGIC Insd)........ 5.750 09/01/15 1,176,357
1,500 Miami-Dade Cnty, FL Aviation Rev Miami Intl Arpt
(AMT) (FGIC Insd)............................... 5.375 10/01/32 1,580,730
870 Miami-Dade Cnty, FL Aviation Rev Miami Intl Arpt
Ser B (FGIC Insd)............................... 5.450 10/01/15 960,080
</Table>
See Notes to Financial Statements 7
VAN KAMPEN TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2005 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
FLORIDA (CONTINUED)
$1,000 Miami-Dade Cnty, FL Aviation Rev Miami Intl Arpt
Ser B (FGIC Insd)............................... 5.750% 10/01/29 $ 1,108,050
1,000 Miami-Dade Cnty, FL Aviation Ser A (AMT) (FSA
Insd)........................................... 5.000 10/01/33 1,022,670
1,250 Miami-Dade Cnty, FL Sch Brd Ctf Partn Rfdg (FGIC
Insd)........................................... 5.250 10/01/20 1,349,025
1,000 Miami-Dade Cnty, FL Sch Brd Ser A (Prerefunded @
05/01/11) (MBIA Insd)........................... 5.000 05/01/20 1,100,260
2,250 North Broward, FL Hosp Dist Rev Impt............ 6.000 01/15/31 2,401,020
1,980 Northern Palm Beach Cnty Impt Dist FL Wtr Ctl
Unit Dev 9A Impt & Rfdg (MBIA Insd) (a)......... 5.250 08/01/18 2,160,437
1,000 Orange Cnty, FL Cap Rev Impt & Rfdg (AMBAC
Insd)........................................... * 10/01/12 756,240
1,000 Orange Cnty, FL Cap Rev Impt & Rfdg (AMBAC
Insd)........................................... * 10/01/13 719,330
1,000 Orange Cnty, FL Sales Tax Rev Ser A Rfdg (FGIC
Insd)........................................... 5.125 01/01/20 1,086,020
1,500 Orlando & Orange Cnty Expwy Auth FL Expwy Rev Jr
Lien (FGIC Insd)................................ 5.000 07/01/28 1,542,270
1,500 Orlando, FL Util Commn Wtr & Elec Rev Ser A
Rfdg............................................ 5.000 10/01/22 1,612,650
1,000 Osceola Cnty, FL Sch Brd Ctf Ser A (AMBAC
Insd)........................................... 5.125 06/01/22 1,081,450
2,000 Osceola Cnty, FL Sch Brd Ctf Ser A (AMBAC
Insd)........................................... 5.250 06/01/27 2,149,420
1,000 Palm Beach Cnty, FL Criminal Justice Fac Rev
Rfdg............................................ 5.000 06/01/13 1,105,740
1,000 Palm Beach Cnty, FL Sch Brd Ctf Ser A
(Prerefunded @ 08/01/11) (AMBAC Insd)........... 5.500 08/01/16 1,133,040
1,500 Palm Beach Cnty, FL Sch Brd Ctf Ser D
(Prerefunded @ 08/01/12) (FSA Insd)............. 5.250 08/01/20 1,681,320
1,000 Palm Coast, FL Util Sys Rev (MBIA Insd)......... 5.250 10/01/21 1,103,640
1,705 Pembroke Pines, FL Charter Sch Ser A (MBIA Insd)
(a)............................................. 5.375 07/01/14 1,910,384
1,000 Pembroke Pines, FL Cons Util Sys Rev (Escrowed
to Maturity) (FGIC Insd)........................ 6.250 09/01/11 1,129,000
500 Polk Cnty, FL Sch Brd Ctf Partn Master Lease Ser
A (FSA Insd).................................... 5.500 01/01/25 545,410
1,750 Polk Cnty, FL Util Sys Rev (FGIC Insd).......... 5.250 10/01/20 1,931,370
1,000 Port Saint Lucie, FL Loc Opt Gas Tax Rev Impt
(Prerefunded @ 09/01/06) (FGIC Insd)............ 5.500 03/01/15 1,045,750
1,000 Port Saint Lucie, FL Util Rev (MBIA Insd)....... 5.000 09/01/23 1,071,140
1,835 Saint Lucie Cnty, FL Sales Tax Rev Impt & Rfdg
(MBIA Insd) (a)................................. 5.250 10/01/19 2,025,179
1,000 Saint Lucie Cnty, FL Sch Brd Ctf Ser A (FSA
Insd)........................................... 5.000 07/01/21 1,059,840
1,420 Sebring, FL Wtr & Wastewtr Rev Rfdg (FGIC
Insd)........................................... 5.250 01/01/19 1,555,837
1,000 Seminole Cnty, FL Sales Tax Rev (FGIC Insd)..... 5.375 10/01/18 1,105,920
</Table>
8 See Notes to Financial Statements
VAN KAMPEN TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2005 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
FLORIDA (CONTINUED)
$ 500 South Lake Cnty Hosp Dist FL South Lake Hosp
Inc............................................. 6.375% 10/01/28 $ 533,835
500 Tallahassee, FL Hlth Fac Rev Tallahassee Mem
Hlthcare Proj................................... 6.375 12/01/30 534,290
1,750 Tampa, FL Hosp Rev Cap Impt H Lee Moffitt Ser
A............................................... 5.750 07/01/19 1,844,045
1,000 Tampa, FL Occupational License Ser A Rfdg (FGIC
Insd)........................................... 5.375 10/01/15 1,108,840
1,000 Tampa, FL Util Tax & Spl Rev Ser A Rfdg (AMBAC
Insd)........................................... 5.250 10/01/20 1,095,920
1,000 Village Ctr Cmnty Dev Dist FL Recreational Rev
Ser A (MBIA Insd)............................... 5.125 11/01/36 1,064,270
1,000 Village Ctr Cmnty Dev Dist FL Util Rev (MBIA
Insd)........................................... 5.250 10/01/23 1,084,930
1,000 Village Ctr Cmnty Dev Dist FL Util Rev (Escrowed
to Maturity) (FGIC Insd)........................ 6.000 11/01/18 1,194,510
1,500 West Orange Hlthcare Dist FL Ser A.............. 5.800 02/01/31 1,575,660
1,090 West Palm Beach, FL (a)......................... 5.000 03/01/13 1,153,307
------------
138,862,359
------------
PUERTO RICO 5.3%
4,000 Puerto Rico Comwlth Hwy & Tran Auth Hwy Rev Ser
Y Rfdg (FSA Insd)............................... 6.250 07/01/21 5,077,720
------------
U.S. VIRGIN ISLANDS 2.4%
1,000 Virgin Islands Pub Fin Auth Rev Gross Rcpt Taxes
Ln Nt Ser A..................................... 6.500 10/01/24 1,138,770
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
------------
2,258,280
------------
TOTAL LONG-TERM INVESTMENTS 151.7%
(Cost $134,868,500)....................................................... 146,198,359
------------
</Table>
See Notes to Financial Statements 9
VAN KAMPEN TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2005 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS 6.1%
$ 900 Alachua Cnty, FL Hlth Fac Auth Hlth Fac Rev Ser
A (b)........................................... 3.050% 12/01/12 $ 900,000
2,500 Highlands Cnty, FL Hlth Fac Auth Rev Ser A (FGIC
Insd) (b)....................................... 3.000 12/01/26 2,500,000
2,500 Orlando & Orange Cnty Expwy Auth FL Expwy Rev
Ser A (AMBAC Insd) (b).......................... 2.990 07/01/40 2,500,000
------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $5,900,000)......................................................... 5,900,000
------------
TOTAL INVESTMENTS 157.8%
(Cost $140,768,500)....................................................... 152,098,359
OTHER ASSETS IN EXCESS OF LIABILITIES 0.3%................................. 331,746
PREFERRED SHARES (INCLUDING ACCRUED DISTRIBUTIONS) (58.1%)................. (56,013,992)
------------
NET ASSETS APPLICABLE TO COMMON SHARES 100.0%.............................. $ 96,416,113
============
</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 includes a put feature allowing the Trust to periodically put the
security back to the issuer at amortized cost on specified put dates. The
interest rate shown represents the current interest rate earned by the Trust
based on the most recent reset date.
ACA--American Capital Access
AMBAC--AMBAC Indemnity Corp.
AMT--Alternative Minimum Tax
FGIC--Financial Guaranty Insurance Co.
FSA--Financial Security Assurance Inc.
MBIA--Municipal Bond Investors Assurance Corp.
10 See Notes to Financial Statements
VAN KAMPEN TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
April 30, 2005 (Unaudited)
<Table>
ASSETS:
Total Investments (Cost $140,768,500)....................... $152,098,359
Cash........................................................ 105,278
Interest Receivable......................................... 1,749,549
Other....................................................... 420
------------
Total Assets............................................ 153,953,606
------------
LIABILITIES:
Payables:
Investments Purchased..................................... 1,049,970
Investment Advisory Fee................................... 68,317
Income Distributions--Common Shares....................... 7,908
Other Affiliates.......................................... 5,974
Trustees' Deferred Compensation and Retirement Plans........ 338,670
Accrued Expenses............................................ 52,662
------------
Total Liabilities....................................... 1,523,501
Preferred Shares (including accrued distributions).......... 56,013,992
------------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $ 96,416,113
============
NET ASSET VALUE PER COMMON SHARE ($96,416,113 divided by
5,563,438 shares outstanding)............................. $ 17.33
============
NET ASSETS CONSIST OF:
Common Shares ($.01 par value with an unlimited number of
shares authorized, 5,563,438 shares issued and
outstanding).............................................. $ 55,634
Paid in Surplus............................................. 85,514,038
Net Unrealized Appreciation................................. 11,329,859
Accumulated Undistributed Net Investment Income............. 190,176
Accumulated Net Realized Loss............................... (673,594)
------------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $ 96,416,113
============
PREFERRED SHARES ($.01 par value, authorized 100,000,000
shares, 2,240 issued with liquidation preference of
$25,000 per share)........................................ $ 56,000,000
============
NET ASSETS INCLUDING PREFERRED SHARES....................... $152,416,113
============
</Table>
See Notes to Financial Statements 11
VAN KAMPEN TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
FINANCIAL STATEMENTS continued
Statement of Operations
For the Six Months Ended April 30, 2005 (Unaudited)
<Table>
INVESTMENT INCOME:
Interest.................................................... $3,519,389
----------
EXPENSES:
Investment Advisory Fee..................................... 414,133
Preferred Share Maintenance................................. 77,257
Trustees' Fees and Related Expenses......................... 18,817
Legal....................................................... 13,782
Custody..................................................... 6,361
Other....................................................... 68,140
----------
Total Expenses.......................................... 598,490
----------
NET INVESTMENT INCOME....................................... $2,920,899
==========
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Gain........................................... $ 258,897
----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 11,763,783
End of the Period......................................... 11,329,859
----------
Net Unrealized Depreciation During the Period............... (433,924)
----------
NET REALIZED AND UNREALIZED LOSS............................ $ (175,027)
==========
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS..................... $ (541,676)
==========
NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM
OPERATIONS................................................ $2,204,196
==========
</Table>
12 See Notes to Financial Statements
VAN KAMPEN TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
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................................... $ 2,920,899 $ 5,847,900
Net Realized Gain....................................... 258,897 341,343
Net Unrealized Appreciation/Depreciation During the
Period................................................ (433,924) 2,849,551
Distributions to Preferred Shareholders:
Net Investment Income................................. (541,676) (619,464)
Net Realized Gain..................................... -0- (49,050)
----------- -----------
Change in Net Assets Applicable to Common Shares from
Operations............................................ 2,204,196 8,370,280
Distributions to Common Shareholders:
Net Investment Income................................. (2,444,880) (5,718,719)
Net Realized Gain..................................... -0- (1,441,786)
----------- -----------
NET CHANGE IN NET ASSETS APPLICABLE TO COMMON SHARES
FROM INVESTMENT ACTIVITIES............................ (240,684) 1,209,775
FROM CAPITAL TRANSACTIONS:
Value of Common Shares Issued Through Dividend
Reinvestment.......................................... -0- 15,275
----------- -----------
TOTAL INCREASE/DECREASE IN NET ASSETS APPLICABLE TO
COMMON SHARES......................................... (240,684) 1,225,050
NET ASSETS APPLICABLE TO COMMON SHARES:
Beginning of the Period................................. 96,656,797 95,431,747
----------- -----------
End of the Period (Including accumulated undistributed
net investment income of $190,176 and $255,833,
respectively)......................................... $96,416,113 $96,656,797
=========== ===========
</Table>
See Notes to Financial Statements 13
VAN KAMPEN TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
FINANCIAL HIGHLIGHTS (UNAUDITED)
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE
TRUST OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
<Table>
<Caption>
SIX
MONTHS
ENDED
APRIL 30, ------------------
2005 2004 2003
-------------------------------
NET ASSET VALUE, BEGINNING OF THE PERIOD.................... $ 17.37 $ 17.16 $ 17.79
------- ------- -------
Net Investment Income..................................... .53 1.05 1.10
Net Realized and Unrealized Gain/Loss..................... (.03) .57 .04
Common Share Equivalent of Distributions Paid to
Preferred Shareholders:
Net Investment Income................................... (.10) (.11) (.04)
Net Realized Gain....................................... -0- (.01) (.07)
------- ------- -------
Total from Investment Operations............................ .40 1.50 1.03
Distributions Paid to Common Shareholders:
Net Investment Income................................... (.44) (1.03) (1.10)
Net Realized Gain....................................... -0- (.26) (.56)
------- ------- -------
NET ASSET VALUE, END OF THE PERIOD.......................... $ 17.33 $ 17.37 $ 17.16
======= ======= =======
Common Share Market Price at End of the Period.............. $ 14.88 $ 15.64 $ 16.32
Total Return (b)............................................ -2.06%* 3.71% 14.37%
Net Assets Applicable to Common Shares at End of the Period
(In millions)............................................. $ 96.4 $ 96.7 $ 95.4
Ratio of Expenses to Average Net Assets Applicable to Common
Shares (c)................................................ 1.26% 1.44% 1.43%
Ratio of Net Investment Income to Average Net Assets
Applicable to Common Shares (c)........................... 6.15% 6.16% 6.33%
Portfolio Turnover.......................................... 10%* 14% 25%
SUPPLEMENTAL RATIOS:
Ratio of Expenses to Average Net Assets Including Preferred
Shares (c)................................................ .79% .90% .91%
Ratio of Net Investment Income to Average Net Assets
Applicable to Common Shares (d)........................... 5.01% 5.51% 6.11%
SENIOR SECURITIES:
Total Preferred Shares Outstanding.......................... 2,240 2,240 2,240
Asset Coverage Per Preferred Share (e)...................... $68,049 $68,169 $67,613
Involuntary Liquidating Preference Per Preferred Share...... $25,000 $25,000 $25,000
Average Market Value Per Preferred Share.................... $25,000 $25,000 $25,000
</Table>
* Non-Annualized
(a)As required, effective November 1, 2001, the Trust has adopted the provisions
of the AICPA Audit and Accounting Guide for Investment Companies and began
accreting market discount on fixed income securities. The effect of this
change for the year ended October 31, 2002 was to increase net investment
income per share by $.01, decrease net realized and unrealized gains and
losses per share by $.01 and increase the ratio of net investment income to
average net assets applicable to common shares by .07%. 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.
14
<Table>
<Caption>
YEAR ENDED OCTOBER 31,
- ---------------------------------------------------------------------------------------
2002 (a) 2001 2000 1999 1998 1997 1996 1995
- ---------------------------------------------------------------------------------------
$ 17.69 $ 16.53 $ 16.00 $ 17.89 $ 17.71 $ 17.32 $ 17.24 $ 15.24
------- ------- ------- ------- -------- -------- -------- --------
1.20 1.16 1.25 1.26 1.28 1.30 1.29 1.30
.12 1.40 .60 (1.79) .26 .50 .11 2.02
(.14) (.27) (.38) (.30) (.34) (.32) (.34) (.37)
(.02) (.10) -0- (.02) (.01) (.02) -0- -0-
------- ------- ------- ------- -------- -------- -------- --------
1.16 2.19 1.47 (.85) 1.19 1.46 1.06 2.95
(.97) (.83) (.94) (.99) (.99) (.99) (.98) (.95)
(.09) (.20) -0- (.05) (.02) (.08) -0- -0-
------- ------- ------- ------- -------- -------- -------- --------
$ 17.79 $ 17.69 $ 16.53 $ 16.00 $ 17.89 $ 17.71 $ 17.32 $ 17.24
======= ======= ======= ======= ======== ======== ======== ========
$ 15.80 $ 15.14 $ 13.50 $ 14.75 $ 18.625 $17.1875 $ 16.50 $ 15.25
11.63% 20.31% -2.28% -15.79% 14.75% 11.00% 14.89% 20.50%
$ 98.9 $ 98.4 $ 68.6 $ 66.4 $ 74.1 $ 73.3 $ 71.7 $ 71.3
1.52% 2.01% 1.78% 1.73% 1.68% 1.70% 1.77% 1.79%
6.84% 7.72% 7.76% 7.36% 7.19% 7.47% 7.48% 7.97%
33% 23% 42% 24% 18% 2% 12% 6%
.96% 1.14% 1.11% 1.11% 1.09% 1.09% 1.13% 1.12%
6.05% 5.99% 5.39% 5.59% 5.27% 5.62% 5.51% 5.67%
2,240 2,240 1,600 1,600 800 800 800 800
$69,188 $68,932 $67,875 $66,491 $142,646 $141,590 $139,590 $139,140
$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 TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2005 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen Trust for Investment Grade Florida Municipals (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 income
taxes and Florida state intangibles taxes, consistent with preservation of
capital. The Trust will invest in a portfolio consisting substantially of
Florida municipal obligations rated investment grade at the time of investment,
but may invest up to 20% of its assets in unrated securities which are believed
to be of comparable quality to those rated investment grade. The Trust commenced
investment operations on March 27, 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 Fund 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.
The Trust intends to utilize provisions of the federal income tax laws which
allow it to carry a realized capital loss forward for eight years following the
year of the loss and offset these losses against any future realized capital
gains. At October 31, 2004, the Trust had an
16
VAN KAMPEN TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2005 (UNAUDITED) continued
accumulated capital loss carryforward for tax purposes of $87,002, which will
expire on October 31, 2012.
At April 30, 2005, the cost and related gross unrealized appreciation and
depreciation are as follows:
<Table>
Cost of investments for tax purposes........................ $140,705,695
============
Gross tax unrealized appreciation........................... $ 11,397,482
Gross tax unrealized depreciation........................... (4,818)
------------
Net tax unrealized appreciation on investments.............. $ 11,392,664
============
</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 for the year ended October 31, 2004
was as follows:
<Table>
Distributions paid from:
Ordinary income............................................. $ 238,060
Long-term capital gain...................................... 1,317,190
----------
$1,555,250
==========
</Table>
As of October 31, 2004, the components of distributable earnings on a tax
basis were as follows:
<Table>
Undistributed ordinary income............................... $21,315
</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 $2,800, 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 Service 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 $16,100 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.
17
VAN KAMPEN TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2005 (UNAUDITED) continued
Certain officers and trustees of the Trust are also officers and directors
of Van Kampen. The Trust does not compensate its officers or trustees who are
also officers of Van Kampen.
The Trust provides deferred compensation and retirement plans for its
trustees who are not officers of Van Kampen. Under the deferred compensation
plan, trustees may elect to defer all or a portion of their compensation to a
later date. Benefits under the retirement plan are payable upon retirement for a
ten-year period and are based upon each trustee's years of service to the Trust.
The maximum annual benefit per trustee under the plan is $2,500.
3. CAPITAL TRANSACTIONS
At April 30, 2005 and October 31, 2004, paid in surplus related to common shares
aggregated $85,514,038.
Transactions in common shares were as follows:
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2005 OCTOBER 31, 2004
Beginning Shares........................................ 5,563,438 5,562,561
Shares Issued Through Dividend Reinvestment............. -0- 877
--------- ---------
Ending Shares........................................... 5,563,438 5,563,438
========= =========
</Table>
4. INVESTMENT TRANSACTIONS
During the period, the cost of purchases and proceeds from sales of investments,
excluding short-term investments, were $14,677,601 and $17,306,904,
respectively.
5. PREFERRED SHARES
The Trust has outstanding 2,240 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 3.040%. During the six
months ended April 30, 2005, the rates ranged from 1.550% to 3.040%.
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.
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.
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.
18
VAN KAMPEN TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2005 (UNAUDITED) continued
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.
8. TRUST MERGER
On May 11, 2005, the Trustees of Van Kampen Florida Quality Municipal Trust
("Target Trust") announced its intention to merge the Target Trust into Van
Kampen Trust for Investment Grade Florida Municipals ("Acquiring Trust"). The
Trustees of each of the trusts have approved in principal an agreement and plan
of reorganization between the trusts providing for a transfer of assets and
liabilities of the Target Trust to the Acquiring Trust in exchange for shares of
beneficial interest of the Acquiring Trust (the "Reorganization"). The
Reorganization is subject to the approval by the shareholders of the Target
Trust.
19
VAN KAMPEN TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
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.
VTF SAR 6/05 RN05-01296P-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 Trust For Investment Grade Florida Municipals
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