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 811-6472
Van Kampen Trust For Insured 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 Insured 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 INSURED MUNICIPALS
SYMBOL: VIM
- ------------------------------------------------------------
AVERAGE ANNUAL BASED ON BASED ON
TOTAL RETURNS NAV MARKET PRICE
Since Inception 1/24/92 7.19% 7.92%
10-year 7.13 7.64
5-year 9.23 8.64
1-year 9.89 10.71
6-month 2.66 1.18
- ------------------------------------------------------------
</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 Municipal Bond Index is a broad-based statistical composite
of municipal bonds. The index does not include any expenses, fees or sales
charges, which would lower performance. The index is unmanaged and should not be
considered an investment. It is not possible to invest directly in an index.
1
Trust Report
FOR THE 6-MONTH PERIOD ENDED APRIL 30, 2005
Van Kampen Trust for Insured Municipals is managed by the Adviser's Municipal
Fixed Income team.(1) Current members include Joseph Piraro and Robert Wimmel,
Vice Presidents of the Adviser; and John Reynoldson, Executive Director of the
Adviser.
MARKET CONDITIONS
The six-month period ended April 30, 2005, was characterized by continued
short-term interest rate increases. As crude oil prices reached record highs,
the prospect of rising inflation also cast a shadow. The Federal Open Market
Committee (the "Fed") raised the federal funds target rate 100 basis points
during the period through a series of four "measured" 0.25 percent tightenings
to 2.75 percent by the end of April. Although rates in the short and
intermediate areas of the yield curve shifted upward as the Fed tightened, long-
term interest rates fell as buyers did not seem deterred by the prospect of
rising inflation. As a result, the yield curve (the difference between short and
longer-term yields) flattened and the long end of the municipal market handily
outperformed the shorter end.
The municipal market in total posted positive returns during the period, though
it was not uniformly strong. In contrast to the strong showing by longer-term
bonds, shorter-term municipals were hampered by the Fed's tightening and turned
in a flat to slightly negative showing. Within the investment-grade segment of
the market, yield differentials between BBB-rated and AAA-rated municipal
securities were slightly wider, though BBB-rated securities still outperformed
high grades due to their higher coupons, while securities rated below investment
grade strongly outperformed as investors sought out their higher yields.
The Fed's interest rate hikes did not appear to dampen investors' appetites for
municipal bonds, as net inflows into municipal bond funds topped $290 million
during the period. The supply of new issues was modest during the closing months
of 2004 (the first two months of the period) before soaring in the opening
months of 2005 as long-term issuers rushed to bring securities to market in
anticipation of additional interest rate increases in the near term.
(1)Team members may change at any time without notice.
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 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 MUNICIPAL BOND INDEX
2.66% 1.18% 1.93%
- ----------------------------------------------------------
</Table>
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NO GUARANTEE OF
FUTURE RESULTS, AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE FIGURES
SHOWN. INVESTMENT RETURN, NET ASSET VALUE AND COMMON SHARE MARKET PRICE WILL
FLUCTUATE AND TRUST SHARES, WHEN SOLD, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST. SEE PERFORMANCE SUMMARY FOR ADDITIONAL PERFORMANCE INFORMATION
AND INDEX DEFINITION.
The trust uses leverage to enhance its dividend to common shareholders. The
trust borrows money at short-term rates through the issuance of preferred
shares. The proceeds are reinvested in longer-term securities, taking advantage
of the difference between short- and longer-term rates. The Fed's policy of
raising interest rates throughout the period made the trust's borrowing activity
more expensive. These expenses, however, were more than offset by the positive
performance of the bonds held by the trust.
One of our primary strategies in managing the trust during the period was to
take advantage of compelling opportunities in the 25- to 30-year segment of the
market. We focused here on purchasing securities with premium (that is, above-
market) coupons and moderate interest rate sensitivity. Our purchases of these
securities were funded by the proceeds of sales of several shorter-maturity
positions, many of which had been refunded during the period. This was part of
our ongoing strategy of positioning the trust for an environment of rising
short-term interest rates by limiting the trust's exposure to that segment of
the market.
At the end of the period, airport bonds represented the largest sector exposure
of the portfolio, totaling approximately 18 percent of assets. Although airport
bonds have received negative publicity, our analysis is that the airports will
persevere, regardless of which airlines survive. We continued to favor the
essential services segments of the market. Public builders and general purpose
rounded out the top three sectors.
3
In turn, we avoided the housing sector out of concerns about those bonds'
structural characteristics. We also avoided zero coupon bonds. The trust
remained well diversified geographically, with no one state or region dominating
the portfolio. Many of our purchases were either from states with high taxes
(such as California or New York), and therefore, strong demand for their bonds;
or from states (such as Illinois) that lack dual tax-exempt status. Because they
do not carry dual tax-exemption, bonds in this latter group typically offered
higher yields than other higher-tax states. Because the trust invests
exclusively in bonds that offer the credit enhancement of insurance, the entire
portfolio of long-term investments was rated AAA at the close 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.
4
<Table>
<Caption>
TOP 5 SECTORS AS OF 4/30/05
Airport 17.6%
Public Building 15.3
General Purpose 15.3
Public Education 11.2
Higher Education 8.0
<Caption>
RATINGS ALLOCATION AS OF 4/30/05
A/A 0.2%
AAA/Aaa 99.8
<Caption>
SUMMARY OF INVESTMENTS BY STATE CLASSIFICATION AS OF 4/30/05
Illinois 13.0%
Texas 11.2
Washington 5.4
Indiana 5.1
Georgia 5.1
Pennsylvania 4.5
Ohio 3.7
New York 3.7
Florida 3.4
Michigan 3.1
Missouri 2.9
Kansas 2.8
Louisiana 2.4
Puerto Rico 2.4
Alabama 2.4
North Carolina 2.4
Oregon 2.4
Arizona 2.3
Rhode Island 2.2
Tennessee 1.9
Colorado 1.8
Nevada 1.6
California 1.6
New Jersey 1.5
South Carolina 1.5
Hawaii 1.4
District of Columbia 1.3
Mississippi 1.0
South Dakota 1.0
Alaska 0.9
Massachusetts 0.8
Wisconsin 0.7
West Virginia 0.6
Virginia 0.6
Oklahoma 0.6
Nebraska 0.4
New Mexico 0.1
-----
Total Investments 100.0%
</Table>
Subject to change daily. Provided for informational purposes only and should not
be deemed as a recommendation to buy or sell the securities mentioned or
securities in the sectors shown above. Ratings
5
and summary of investments by state classification 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.
6
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.
7
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.
8
VAN KAMPEN TRUST FOR INSURED MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2005 (UNAUDITED)
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
MUNICIPAL BONDS 160.5%
ALABAMA 3.9%
$ 915 Alabama Drinking Wtr Fin Auth Revolving Fd Ln
Ser A (AMBAC Insd).............................. 5.125% 08/15/16 $ 990,652
1,380 Alabama Drinking Wtr Fin Auth Revolving Fd Ln
Ser A (AMBAC Insd).............................. 5.250 08/15/18 1,505,221
1,480 Alabama St Brd Ed Rev Jefferson St Cmnty College
(AMBAC Insd) (a)................................ 5.000 10/01/21 1,591,089
1,480 Dothan-Houston Cnty, AL Arpt Auth Arpt Rev (AMT)
(MBIA Insd)..................................... 5.600 12/01/20 1,614,192
515 Enterprise, AL Wt (AMBAC Insd).................. 5.000 10/01/23 549,871
------------
6,251,025
------------
ALASKA 1.5%
2,110 Alaska St Intl Arpt Rev Ser B (AMBAC Insd)...... 5.750 10/01/18 2,386,241
------------
ARIZONA 3.7%
1,395 Greater AZ Dev Auth Infrastructure Rev Ser A
(MBIA Insd)..................................... 5.000 08/01/22 1,497,240
2,000 Phoenix, AZ Civic Impt Corp Arpt Rev Jr Lien
(AMT) (FGIC Insd)............................... 5.375 07/01/29 2,036,700
1,140 Pima Cnty, AZ Indl Dev Auth Indl Rev Lease Oblig
Irvington Proj Tucson Ser A Rfdg (FSA Insd)..... 7.250 07/15/10 1,193,352
1,150 Tucson, AZ Wtr Rev Rfdg (FGIC Insd)............. 5.500 07/01/17 1,296,740
------------
6,024,032
------------
CALIFORNIA 2.6%
2,000 California Stwide Cmnty Pooled Fin Pgm Ser S
(FSA Insd)...................................... 5.250 10/01/19 2,201,340
1,750 Huntington Pk, CA Pub Fin Ser A Rfdg (FSA
Insd)........................................... 5.250 09/01/18 1,955,555
------------
4,156,895
------------
COLORADO 2.9%
1,255 Colorado Ed & Cultural Fac Auth Rev Charter Sch
Aurora Academy Proj (XLCA Insd) (a)............. 5.250 02/15/24 1,349,163
560 Weld & Adams Cntys, CO Sch Dist
Ser J (FSA Insd)................................ 5.000 12/15/22 602,274
2,425 Weld Cnty, CO Sch Dist No 006 (FSA Insd) (b).... 5.500 12/01/19 2,698,758
------------
4,650,195
------------
DISTRICT OF COLUMBIA 2.1%
2,035 District of Columbia Tax Increment Rev Gallery
Place Proj (FSA Insd) (a)....................... 5.500 07/01/14 2,257,710
1,000 District of Columbia Tax Increment Rev Gallery
Place Proj (FSA Insd)........................... 5.500 07/01/15 1,108,770
------------
3,366,480
------------
FLORIDA 5.1%
2,000 Escambia Cnty, FL Hlth Fac Auth Rev
(AMBAC Insd).................................... 5.950 07/01/20 2,031,020
</Table>
See Notes to Financial Statements 9
VAN KAMPEN TRUST FOR INSURED MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2005 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
FLORIDA (CONTINUED)
$1,330 Hillsborough Cnty, FL Aviation Tampa Intl Arpt
Ser A (AMT) (MBIA Insd)......................... 5.375% 10/01/16 $ 1,454,062
2,000 Miami-Dade Cnty, FL Aviation Miami Intl Arpt
(AMT) (FGIC Insd)............................... 5.375 10/01/27 2,118,880
405 Orange Cnty, FL Hsg Fin Auth Single Family Mtg
Rev Ser A (AMT) (GNMA Collateralized)........... 6.200 10/01/16 416,984
2,000 Pasco Cnty, FL Solid Waste Disp & Res Recovery
Sys Rev (AMT) (AMBAC Insd)...................... 6.000 04/01/11 2,234,120
------------
8,255,066
------------
GEORGIA 8.2%
3,145 Atlanta, GA Dev Auth Rev Yamacraw Design Ctr
Proj Ser A (MBIA Insd).......................... 5.375 01/01/17 3,452,801
3,620 Atlanta, GA Dev Auth Rev Yamacraw Design Ctr
Proj Ser A (MBIA Insd) (a)...................... 5.375 01/01/18 3,969,801
1,860 George L Smith ll GA Wrld Congress Ctr Auth Rev
Domed Stad Proj Rfdg (AMT) (MBIA Insd).......... 6.000 07/01/10 2,086,102
2,145 Upper Oconee Basin Wtr Auth GA Rev Rfdg (MBIA
Insd)........................................... 5.000 07/01/24 2,291,246
1,300 Upper Oconee Basin Wtr Auth GA Rev Rfdg (MBIA
Insd)........................................... 5.000 07/01/25 1,384,188
------------
13,184,138
------------
HAWAII 2.2%
2,000 Hawaii St Dept Budget & Fin Spl Purp Rev
Hawaiian Elec Co Proj Ser C (AMT) (AMBAC
Insd)........................................... 6.200 11/01/29 2,235,600
1,250 Hawaii St Dept Budget & Fin Spl Purp Rev
Hawaiian Elec Co Ser D Rfdg (AMT) (AMBAC
Insd)........................................... 6.150 01/01/20 1,371,750
------------
3,607,350
------------
ILLINOIS 20.9%
2,000 Bolingbrook, IL Cap Apprec Ser B (MBIA Insd).... * 01/01/32 473,340
1,795 Chicago, IL O'Hare Intl Arpt Rev Gen Arpt Second
Lien Ser A (AMT) (AMBAC Insd)................... 5.500 01/01/16 1,881,339
2,705 Chicago, IL O'Hare Intl Arpt Rev Gen Arpt Third
Lien Ser E Rfdg (CIFG Insd) (a)................. 5.250 01/01/20 2,920,724
5,000 Chicago, IL O'Hare Intl Arpt Rev RR II (Inverse
Fltg) (AMT) (Acquired 08/18/03, Cost $5,289,007)
(FSA Insd) (a) (c).............................. 8.360 01/01/22 6,104,750
1,000 Chicago, IL Pk Dist Ltd Tax Ser A (FGIC Insd)... 5.500 01/01/18 1,097,450
5,000 Chicago, IL Proj & Rfdg (FGIC Insd) (b)......... 5.250 01/01/28 5,311,450
3,000 Chicago, IL Proj Ser C Rfdg (FGIC Insd)......... 5.500 01/01/40 3,269,040
1,770 Glenwood, IL (FSA Insd) (a)..................... 5.375 12/01/30 1,918,397
1,000 Illinois Ed Fac Auth Rev Robert Morris College
(MBIA Insd)..................................... 5.800 06/01/30 1,058,710
3,000 Illinois St First Ser (FGIC Insd)............... 5.500 02/01/16 3,320,940
1,500 Illinois St First Ser (FGIC Insd)............... 5.500 02/01/17 1,658,580
2,000 Illinois St First Ser (FGIC Insd)............... 5.500 02/01/18 2,208,920
</Table>
10 See Notes to Financial Statements
VAN KAMPEN TRUST FOR INSURED MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2005 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
ILLINOIS (CONTINUED)
$1,260 Kendall, Kane & Will Cntys, IL (FGIC Insd)...... 5.500% 10/01/12 $ 1,408,000
1,050 Kendall, Kane & Will Cntys, IL Ser B (FGIC
Insd)........................................... 5.000 10/01/22 1,118,901
------------
33,750,541
------------
INDIANA 8.2%
2,025 Aurora, IN Sch Bldg Ind Corp First Mtg
(FGIC Insd)..................................... 5.000 07/15/23 2,153,972
1,000 Ball St Univ, IN Univ Rev Student Fee Ser M
(AMBAC Insd).................................... 5.000 07/01/22 1,066,600
1,000 Baugo, IN Sch Bldg Corp First Mtg Ser B (AMBAC
Insd)........................................... 5.125 01/15/25 1,066,010
1,085 Indiana St Recreational Dev Cmnty Rev (AMBAC
Insd) (a)....................................... 5.000 07/01/18 1,166,700
1,235 Indianapolis, IN Loc Pub Impt Ser D
(AMBAC Insd).................................... 5.500 02/01/21 1,348,200
2,000 New Albany Floyd Cnty, IN Sch Bldg Corp First
Mtg Rfdg (FSA Insd) (d)......................... 5.000 07/15/22 2,115,620
1,000 New Albany Floyd Cnty, IN Sch Bldg Corp First
Mtg Rfdg (FSA Insd) (d)......................... 5.000 07/15/23 1,054,440
2,000 New Albany Floyd Cnty, IN Sch Bldg Corp First
Mtg Rfdg (FSA Insd) (d)......................... 5.000 07/15/25 2,093,840
1,195 Saint Joseph Cnty, IN Econ Dev Saint Mary's
College Proj (MBIA Insd)........................ 5.125 04/01/28 1,250,962
------------
13,316,344
------------
KANSAS 4.5%
1,455 Butler Cnty, KS Uni Sch Dist Impt Ser B (FSA
Insd) (a) (d)................................... 5.000 09/01/28 1,536,102
1,560 Butler Cnty, KS Uni Sch Dist Impt Ser B (FSA
Insd) (a) (d)................................... 5.000 09/01/29 1,642,961
1,675 Butler Cnty, KS Uni Sch Dist Impt Ser B (FSA
Insd) (a) (d)................................... 5.000 09/01/30 1,764,495
2,095 Kansas St Dev Fin Auth Lease Juvenile Justice
Auth Ser D (MBIA Insd).......................... 5.250 05/01/15 2,288,704
------------
7,232,262
------------
LOUISIANA 3.9%
3,145 Calcasieu Parish, LA Mem Hosp Svc Dist Hosp Rev
Lake Charles Mem Hosp Proj Ser A (Connie Lee
Insd)........................................... 6.650 12/01/21 3,186,105
1,000 Louisiana Hsg Fin Agy Mtg Rev Coll Mtg Malta
Square Proj (AMT) (GNMA Collateralized)......... 6.450 09/01/27 1,058,250
995 Louisiana Hsg Fin Agy Rev Azalea Estates Ser A
Rfdg (AMT) (GNMA Collateralized)................ 5.375 10/20/39 1,036,820
1,000 Louisiana Loc Govt Envir Fac Cmnty Dev Auth Rev
Ascension Parish Lib Proj (AMBAC Insd).......... 5.250 04/01/35 1,073,120
------------
6,354,295
------------
</Table>
See Notes to Financial Statements 11
VAN KAMPEN TRUST FOR INSURED MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2005 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
MASSACHUSETTS 1.4%
$2,000 Massachusetts St Dev Fin Agy Semass Sys Ser A
(MBIA Insd)..................................... 5.625% 01/01/15 $ 2,205,760
------------
MICHIGAN 5.0%
1,000 Detroit, MI Ser A (XLCA Insd)................... 5.250 04/01/23 1,068,370
4,250 Michigan St Ctf Part (AMBAC Insd)............... 5.500 06/01/27 4,589,447
1,000 Monroe Cnty, MI Econ Dev Corp Ltd Oblig Rev Coll
Detroit Edison Co Ser AA Rfdg (FGIC Insd)....... 6.950 09/01/22 1,330,140
1,000 Plymouth Canton, MI Cmnty Sch Dist (FGIC
Insd)........................................... 5.000 05/01/28 1,052,950
------------
8,040,907
------------
MISSISSIPPI 1.7%
173 Mississippi Home Corp Single Family Rev Mtg
Access Pgm Ser D (AMT) (GNMA Collateralized).... 8.100 12/01/24 173,784
2,500 Mississippi Hosp Equip & Fac Auth Rev Rush Med
Fndtn Proj (Connie Lee Insd).................... 6.700 01/01/18 2,507,850
------------
2,681,634
------------
MISSOURI 4.7%
1,000 Chesterfield, MO Ctf Part (FGIC Insd)........... 5.000 12/01/21 1,076,730
1,000 Chesterfield, MO Ctf Part (FGIC Insd)........... 5.000 12/01/22 1,073,180
1,095 Chesterfield, MO Ctf Part (FGIC Insd)........... 5.000 12/01/23 1,172,318
1,050 Grandview, MO Ctf Part (FGIC Insd).............. 5.250 01/01/18 1,147,524
1,000 Missouri St Hsg Dev Commn Multi-Family Hsg
Brookstone Ser A (AMT) (FSA Insd)............... 6.000 12/01/16 1,035,480
900 Missouri St Hsg Dev Commn Multi-Family Hsg
Truman Farm Ser A (Variable Rate Coupon) (AMT)
(FSA Insd)...................................... 5.750 10/01/11 929,718
1,175 Nixa, MO Elec Sys Rev (XLCA Insd)............... 5.000 04/01/25 1,223,845
------------
7,658,795
------------
NEBRASKA 0.6%
985 Nebraska Invt Fin Auth Multi-Family Rev Hsg
Summit Club Apt Proj (AMT) (FSA Insd)........... 5.700 10/01/12 1,009,743
------------
NEVADA 2.6%
4,000 Clark Cnty, NV Indl Dev Rev Southwest Gas Corp
Proj Ser A (AMT) (AMBAC Insd)................... 5.250 07/01/34 4,196,480
------------
NEW JERSEY 2.5%
1,250 Casino Reinvestment Dev Auth NJ Hotel Room Fee
Rev (AMBAC Insd)................................ 5.250 01/01/24 1,374,825
2,510 Essex Cnty, NJ Impt Auth Arpt Rev Cnty Gtd Rfdg
(AMT) (MBIA Insd)............................... 5.125 10/01/21 2,637,759
------------
4,012,584
------------
NEW MEXICO 0.2%
290 New Mexico Mtg Fin Auth Single Family Mtg Pgm A2
(AMT) (GNMA Collateralized)..................... 6.050 07/01/16 291,282
------------
</Table>
12 See Notes to Financial Statements
VAN KAMPEN TRUST FOR INSURED MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2005 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
NEW YORK 5.9%
$1,000 Buffalo, NY Sch Ser B (MBIA Insd)............... 5.375% 11/15/18 $ 1,111,110
1,800 New York City Transitional Future Tax Secd Ser D
(MBIA Insd)..................................... 5.250 02/01/18 1,976,328
3,000 New York St Twy Auth Hwy & Brdg Tr Fd Ser A (FSA
Insd)........................................... 5.250 04/01/18 3,286,380
3,000 Port Auth NY & NJ Spl Oblig Rev Spl Proj JFK
Intl Arpt Terminal 6 (AMT) (MBIA Insd).......... 5.750 12/01/25 3,178,170
------------
9,551,988
------------
NORTH CAROLINA 3.9%
1,585 Brunswick Cnty, NC Enterprise Ser A (FSA
Insd)........................................... 5.250 04/01/24 1,726,810
2,175 Buncombe Cnty, NC Ctf Part Ser 2005 (AMBAC Insd)
(a)............................................. 5.000 04/01/18 2,354,764
1,000 Buncombe Cnty, NC Ctf Part Ser 2005
(AMBAC Insd).................................... 5.000 04/01/22 1,067,430
1,000 Iredell Cnty, NC Ctf Part Pub Fac Proj (AMBAC
Insd)........................................... 5.250 10/01/20 1,087,330
------------
6,236,334
------------
OHIO 5.9%
2,500 Cuyahoga Falls, OH Ser 1 (FGIC Insd)............ 5.250 12/01/17 2,678,825
1,820 Garfield Heights, OH City Sch Dist Sch Impt
(MBIA Insd) (a)................................. 5.500 12/15/19 2,026,406
1,000 New Albany, OH Cmnty Auth Cmnty Fac Rev Ser B
(AMBAC Insd).................................... 5.500 10/01/17 1,111,910
985 Ohio Hsg Fin Agy Mtg Rev Residential Mtg Bkd Sec
Ser C (AMT) (GNMA Collateralized)............... 4.900 03/01/11 1,017,219
1,715 Ohio St Bldg Auth St Fac Admin Bldg Fd Proj Ser
A (FSA Insd).................................... 5.500 04/01/18 1,902,501
775 University Cincinnati, OH Gen Rcpt Ser E (AMBAC
Insd)........................................... 5.000 06/01/21 832,102
------------
9,568,963
------------
OKLAHOMA 0.9%
1,250 Tulsa, OK Arpt Impt Tr Gen Rev Ser A (AMT) (FGIC
Insd)........................................... 6.000 06/01/20 1,477,000
------------
OREGON 3.8%
1,740 Linn Cnty, OR Sch Dist No 055 Sweet Home
(Prerefunded @ 06/15/11) (FSA Insd)............. 5.500 06/15/20 1,959,170
2,150 Oregon St Bd Bk Rev OR Econ Cmnty Dev Dept Ser A
(MBIA Insd) (a)................................. 5.500 01/01/16 2,321,140
1,715 Oregon St Dept Admin Ser C Rfdg (MBIA Insd)..... 5.250 11/01/18 1,870,550
------------
6,150,860
------------
PENNSYLVANIA 7.2%
2,000 Allegheny Cnty, PA Hosp Dev Auth Rev Pittsburgh
Mercy Hlth Sys Inc (Escrowed to Maturity) (AMBAC
Insd)........................................... 5.625 08/15/26 2,089,180
</Table>
See Notes to Financial Statements 13
VAN KAMPEN TRUST FOR INSURED MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2005 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
PENNSYLVANIA (CONTINUED)
$5,000 Philadelphia, PA Auth Indl Dev Lease Rev Ser B
(FSA Insd)...................................... 5.500% 10/01/15 $ 5,593,750
1,300 Philadelphia, PA Gas Wks Rev Eighteenth Ser (AGC
Insd)........................................... 5.250 08/01/16 1,416,194
2,300 Philadelphia, PA Redev Auth Rev Neighborhood
Transformation Ser A (FGIC Insd)................ 5.500 04/15/22 2,528,298
------------
11,627,422
------------
RHODE ISLAND 3.6%
1,000 Providence, RI Redev Agy Rev Pub Safety Bldg
Proj Ser A Rfdg (AMBAC Insd).................... 5.000 04/01/27 1,053,540
1,300 Providence, RI Redev Agy Rev Pub Safety Bldg
Proj Ser A Rfdg (AMBAC Insd).................... 5.000 04/01/28 1,367,678
1,500 Rhode Island Port Auth & Econ Dev Corp Arpt Rev
Ser A (AMT) (FSA Insd).......................... 7.000 07/01/14 1,779,030
1,545 Rhode Island St Econ Dev Ser A Rfdg (AMT) (FSA
Insd)........................................... 5.000 07/01/21 1,608,917
------------
5,809,165
------------
SOUTH CAROLINA 2.5%
3,750 South Carolina Jobs Econ Dev Auth Indl Rev Elec
& Gas Co Proj Ser B (AMT) (AMBAC Insd).......... 5.450 11/01/32 3,989,025
------------
SOUTH DAKOTA 1.6%
1,475 Minnehaha Cnty, SD Ctf Ltd Tax (FSA Insd) (a)... 5.000 12/01/17 1,597,661
990 South Dakota St Hlth & Ed Fac Auth Vocational Ed
Pgm Ser A (AMBAC Insd).......................... 5.400 08/01/13 1,057,666
------------
2,655,327
------------
TENNESSEE 3.1%
4,315 Metropolitan Nashville Arpt Auth TN Arpt Rev
Impt Ser A Rfdg (FGIC Insd)..................... 6.600 07/01/15 4,971,570
------------
TEXAS 17.9%
1,085 Brazos River Auth, TX Johnson Cnty Surface Rfdg
(AMT) (AMBAC Insd).............................. 5.800 09/01/11 1,119,167
2,675 Dallas Cnty, TX Cmnty College Fin Sys (AMBA
Insd) (a)....................................... 5.375 02/15/18 2,898,149
2,000 Dallas-Fort Worth, TX Intl Arpt Rev Impt Jt Ser
A Rfdg (AMT) (FGIC Insd)........................ 5.875 11/01/17 2,222,000
1,500 Dallas-Fort Worth, TX Intl Arpt Rev Impt Jt Ser
A Rfdg (AMT) (FGIC Insd)........................ 5.875 11/01/18 1,666,500
2,000 Dallas-Fort Worth, TX Intl Arpt Rev Impt Jt Ser
A Rfdg (AMT) (MBIA Insd)........................ 5.500 11/01/33 2,137,860
5,000 Dallas-Fort Worth, TX Intl Arpt Rev Jt Ser A
Impt & Rfdg (AMT) (FGIC Insd)................... 5.500 11/01/31 5,289,400
1,820 Galveston Cnty, TX Ctf Oblig Ser C (AMBAC Insd)
(a)............................................. 5.250 02/01/20 1,986,785
</Table>
14 See Notes to Financial Statements
VAN KAMPEN TRUST FOR INSURED MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2005 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
TEXAS (CONTINUED)
$1,380 Houston, TX Cmnty College Sys Rev Sr Lien
Student Fee Rfdg (FSA Insd)..................... 5.250% 04/15/19 $ 1,514,495
500 Laredo, TX ISD Pub Fac Corp Lease Rev Ser A
(AMBAC Insd).................................... 5.000 08/01/29 514,345
1,000 Laredo, TX ISD Pub Fac Corp Lease Rev Ser C
(AMBAC Insd).................................... 5.000 08/01/29 1,028,690
1,800 Midland, TX Ctf Oblig Arpt Sub Lien (AMT) (FSA
Insd)........................................... 5.850 03/01/13 1,838,376
5,000 Texas St Tpk Auth Cent TX Tpk First Tier Ser A
(AMBAC Insd).................................... 5.500 08/15/39 5,506,650
1,150 Wichita Falls, TX Wtr & Swr Rev Priority Lien
(AMBAC Insd).................................... 5.375 08/01/17 1,264,172
------------
28,986,589
------------
VIRGINIA 1.0%
1,495 Harrisonburg, VA Redev & Hsg Auth Multi-Family
Hsg Rev (AMT) (FSA Insd)........................ 6.200 04/01/17 1,552,857
------------
WASHINGTON 8.8%
2,000 Chelan Cnty, WA Pub Util Dist No. 001 Cons Rev
Chelan Hydro Ser A (AMT) (MBIA Insd)............ 5.600 01/01/36 2,144,540
1,855 Grant Cnty, WA Pub Util Dist No 2 Priest Rapids
Hydro Elec Rev Second Ser D (AMT)
(AMBAC Insd) (a)................................ 6.000 01/01/13 1,946,303
1,460 Grant Cnty, WA Pub Util Dist No 2 Priest Rapids
Hydro Elec Rev Second Ser D (AMT)
(AMBAC Insd) (a)................................ 6.250 01/01/17 1,545,585
2,235 Grant Cnty, WA Pub Util Dist No 2 Wanapum Hydro
Elec Rev Second Ser D (AMT) (AMBAC Insd) (a).... 6.000 01/01/13 2,345,007
1,770 Grant Cnty, WA Pub Util Dist No 2 Wanapum Hydro
Elec Rev Second Ser D (AMT) (AMBAC Insd) (a).... 6.250 01/01/17 1,873,757
1,155 Pierce Cnty, WA (AMBAC Insd).................... 5.750 08/01/13 1,287,386
2,760 Spokane Cnty, WA Sch Dist No 363 (FGIC Insd).... 5.250 12/01/21 3,001,114
------------
14,143,692
------------
WEST VIRGINIA 1.0%
1,600 West Virginia St Wtr Dev Auth Wtr Dev Rev Ln Pgm
IV Ser A (FSA Insd) (d)......................... 5.000 11/01/35 1,687,648
------------
WISCONSIN 1.1%
1,610 Wisconsin St Ser 3 Rfdg (FGIC Insd)............. 5.250 05/01/22 1,749,635
------------
</Table>
See Notes to Financial Statements 15
VAN KAMPEN TRUST FOR INSURED MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2005 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
PUERTO RICO 3.9%
$5,000 Puerto Rico Comwlth Hwy & Tran Auth Hwy Rev Ser
Y Rfdg (FSA Insd)............................... 6.250% 07/01/21 $ 6,347,150
------------
TOTAL LONG-TERM INVESTMENTS 160.5%
(Cost $243,625,178)....................................................... 259,137,274
SHORT-TERM INVESTMENT 0.4%
(Cost $600,000)........................................................... 600,000
------------
TOTAL INVESTMENTS 160.9%
(Cost $244,225,178)....................................................... 259,737,274
LIABILITIES IN EXCESS OF OTHER ASSETS (5.1%)............................... (8,236,133)
PREFERRED SHARES (INCLUDING ACCRUED DISTRIBUTIONS) (55.8%)................. (90,064,987)
------------
NET ASSETS APPLICABLE TO COMMON SHARES 100.0%.............................. $161,436,154
============
</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) All or a portion of these securities have been physically segregated in
connection with open futures contracts.
(c) This security is restricted and may be resold only in transactions exempt
from registration which are normally those transactions with qualified
institutional buyers. Restricted securities comprise 3.8% of net assets
applicable to common shares.
(d) Securities purchased on a when-issued or delayed delivery basis.
AGC--AGC Insured Custody Certificates
AMBAC--AMBAC Indemnity Corp.
AMT--Alternative Minimum Tax
CIFG--CDC IXIS Financial Guaranty
Connie Lee--Connie Lee Insurance Co.
FGIC--Financial Guaranty Insurance Co.
FSA--Financial Security Assurance Inc.
GNMA--Government National Mortgage Association
MBIA--Municipal Bond Investors Assurance Corp.
XLCA--XL Capital Assurance Inc.
16 See Notes to Financial Statements
VAN KAMPEN TRUST FOR INSURED MUNICIPALS
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
April 30, 2005 (Unaudited)
<Table>
ASSETS:
Total Investments (Cost $244,225,178)....................... $259,737,274
Cash........................................................ 57,013
Receivables:
Interest.................................................. 3,679,253
Investments Sold.......................................... 218,661
Variation Margin on Futures............................... 73,250
Other....................................................... 693
------------
Total Assets............................................ 263,766,144
------------
LIABILITIES:
Payables:
Investments Purchased..................................... 11,796,988
Investment Advisory Fee................................... 112,913
Income Distributions--Common Shares....................... 35,129
Other Affiliates.......................................... 10,253
Trustees' Deferred Compensation and Retirement Plans........ 250,096
Accrued Expenses............................................ 59,624
------------
Total Liabilities....................................... 12,265,003
Preferred Shares (including accrued distributions).......... 90,064,987
------------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $161,436,154
------------
NET ASSET VALUE PER COMMON SHARE ($161,436,154 divided by
9,808,246 shares outstanding)............................. $ 16.46
------------
NET ASSETS CONSIST OF:
Common Shares ($.01 par value with an unlimited number of
shares authorized, 9,808,246 shares issued and
outstanding).............................................. $ 98,082
Paid in Surplus............................................. 144,784,532
Net Unrealized Appreciation................................. 15,268,283
Accumulated Net Realized Gain............................... 826,872
Accumulated Undistributed Net Investment Income............. 458,385
------------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $161,436,154
------------
PREFERRED SHARES ($.01 par value, authorized 100,000,000
shares, 3,600 issued with liquidation preference of
$25,000 per share)........................................ $ 90,000,000
------------
NET ASSETS INCLUDING PREFERRED SHARES....................... $251,436,154
============
</Table>
See Notes to Financial Statements 17
VAN KAMPEN TRUST FOR INSURED MUNICIPALS
FINANCIAL STATEMENTS continued
Statement of Operations
For the Six Months Ended April 30, 2005 (Unaudited)
<Table>
INVESTMENT INCOME:
Interest.................................................... $ 6,080,388
-----------
EXPENSES:
Investment Advisory Fee..................................... 685,498
Preferred Share Maintenance................................. 123,582
Trustees' Fees and Related Expenses......................... 22,797
Legal....................................................... 17,788
Custody..................................................... 9,380
Other....................................................... 86,867
-----------
Total Expenses........................................ 945,912
-----------
NET INVESTMENT INCOME....................................... $ 5,134,476
===========
REALIZED AND UNREALIZED GAIN/LOSS:
Realized Gain/Loss:
Investments............................................... $ 759,835
Futures................................................... 31,181
-----------
Net Realized Gain........................................... 791,016
-----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 16,744,311
-----------
End of the Period:
Investments............................................. 15,512,096
Futures................................................. (243,813)
-----------
15,268,283
-----------
Net Unrealized Depreciation During the Period............... (1,476,028)
-----------
NET REALIZED AND UNREALIZED LOSS............................ $ (685,012)
===========
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS..................... $ (832,362)
===========
NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM
OPERATIONS................................................ $ 3,617,102
===========
</Table>
18 See Notes to Financial Statements
VAN KAMPEN TRUST FOR INSURED 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 30, 2004
------------------------------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income................................... $ 5,134,476 $ 10,090,183
Net Realized Gain/Loss.................................. 791,016 (1,436,188)
Net Unrealized Appreciation/Depreciation During the
Period................................................ (1,476,028) 4,933,547
Distributions to Preferred Shareholders:
Net Investment Income................................. (832,362) (906,621)
Net Realized Gain..................................... -0- (128,782)
------------ ------------
Change in Net Assets Applicable to Common Shares from
Operations............................................ 3,617,102 12,552,139
Distributions to Common Shareholders:
Net Investment Income................................. (4,491,807) (9,334,506)
Net Realized Gain..................................... -0- (1,517,433)
------------ ------------
NET CHANGE IN NET ASSETS APPLICABLE TO COMMON SHARES
FROM INVESTMENT ACTIVITIES............................ (874,705) 1,700,200
FROM CAPITAL TRANSACTIONS:
Value of Common Shares Issued Through Dividend
Reinvestment.......................................... -0- 262,343
------------ ------------
TOTAL INCREASE/DECREASE IN NET ASSETS APPLICABLE TO
COMMON SHARES......................................... (874,705) 1,962,543
NET ASSETS APPLICABLE TO COMMON SHARES:
Beginning of the Period................................. 162,310,859 160,348,316
------------ ------------
End of the Period (Including accumulated undistributed
net investment income of $458,385 and $648,078,
respectively)......................................... $161,436,154 $162,310,859
============ ============
</Table>
See Notes to Financial Statements 19
VAN KAMPEN TRUST FOR INSURED 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................... $ 16.55 $ 16.37 $ 16.87
------- ------- -------
Net Investment Income.................................... .52 1.02 1.07
Net Realized and Unrealized Gain/Loss.................... (.07) .36 -0-(f)
Common Share Equivalent of Distributions Paid to
Preferred Shareholders:
Net Investment Income.................................. (.08) (.09) (.08)
Net Realized Gain...................................... -0- (.01) (.02)
------- ------- -------
Total from Investment Operations........................... .37 1.28 .97
Distributions Paid to Common Shareholders:
Net Investment Income.................................. (.46) (.95) (1.08)
Net Realized Gain...................................... -0- (.15) (.39)
------- ------- -------
NET ASSET VALUE, END OF THE PERIOD......................... $ 16.46 $ 16.55 $ 16.37
======= ======= =======
Common Share Market Price at End of the Period............. $ 14.92 $ 15.22 $ 16.70
Total Return (b)........................................... 1.18%* -2.23% 13.12%
Net Assets Applicable to Common Shares at End of the Period
(In millions)............................................ $ 161.4 $ 162.3 $ 160.3
Ratio of Expenses to Average Net Assets Applicable to
Common Shares (c)........................................ 1.18% 1.26% 1.25%
Ratio of Net Investment Income to Average Net Assets
Applicable to Common Shares (c).......................... 6.41% 6.29% 6.44%
Portfolio Turnover......................................... 16%* 25% 39%
SUPPLEMENTAL RATIOS:
Ratio of Expenses to Average Net Assets Including Preferred
Shares (c)............................................... .76% .81% .81%
Ratio of Net Investment Income to Average Net Assets
Applicable to Common Shares (d).......................... 5.37% 5.73% 5.94%
SENIOR SECURITIES:
Total Preferred Shares Outstanding......................... 3,600 3,600 3,600
Asset Coverage Per Preferred Share (e)..................... $69,861 $70,110 $69,554
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 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 applicable to common
shares by .01%. 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.
(f) Amount is less than $.01
20
<Table>
<Caption>
YEAR ENDED OCTOBER 31,
- ----------------------------------------------------------------------------------------
2002 (a) 2001 2000 1999 1998 1997 1996 1995
- ----------------------------------------------------------------------------------------
$ 17.00 $ 15.88 $ 15.35 $ 17.43 $ 17.01 $ 16.69 $ 16.69 $ 14.88
------- ------- -------- ------- -------- -------- -------- --------
1.11 1.21 1.26 1.27 1.28 1.30 1.32 1.34
.33 1.11 .61 (1.87) .59 .58 .06 1.88
(.05) (.29) (.38) (.28) (.31) (.29) (.33) (.36)
(.12) (.02) -0- (.05) (.03) (.06) -0- -0-
------- ------- -------- ------- -------- -------- -------- --------
1.27 2.01 1.49 (.93) 1.53 1.53 1.05 2.86
(1.01) (.83) (.96) (.99) (1.00) (1.05) (1.05) (1.05)
(.39) (.06) -0- (.16) (.11) (.16) -0- -0-
------- ------- -------- ------- -------- -------- -------- --------
$ 16.87 $ 17.00 $ 15.88 $ 15.35 $ 17.43 $ 17.01 $ 16.69 $ 16.69
======= ======= ======== ======= ======== ======== ======== ========
$ 16.12 $ 14.98 $14.3125 $ 14.50 $ 17.75 $ 17.25 $ 16.125 $ 15.75
17.34% 11.18% 5.45% -12.42% 9.77% 15.04% 9.19% 24.96%
$ 164.5 $ 165.6 $ 154.7 $ 149.6 $ 169.1 $ 164.5 $ 161.0 $ 160.6
1.40% 1.49% 1.61% 1.56% 1.56% 1.57% 1.60% 1.63%
6.73% 7.34% 8.16% 7.62% 7.44% 7.81% 8.00% 8.45%
50% 53% 41% 53% 66% 36% 35% 28%
.90% .95% 1.01% 1.00% 1.01% 1.01% 1.02% 1.03%
6.46% 5.58% 5.72% 5.97% 5.65% 6.05% 5.99% 6.16%
3,600 3,600 3,600 3,600 1,800 1,800 1,800 1,800
$70,721 $70,990 $ 67,981 $66,543 $143,952 $141,362 $139,456 $139,209
$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 21
VAN KAMPEN TRUST FOR INSURED MUNICIPALS
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2005 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen Trust for Insured Municipals (the "Trust") is registered as a
diversified, closed-end management investment company under the Investment
Company Act of 1940, as amended. The Trust's investment objective is to provide
a high level of current income exempt from federal income tax, consistent with
preservation of capital. In normal market conditions, the Trust intends to
invest substantially all of its assets in municipal securities which are covered
by insurance with respect to the timely payment of principal and interest. The
Trust commenced investment operations on January 24, 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.
Future contracts are valued at the settlement price established each day on the
exchange on which they are traded. Short-term securities with remaining
maturities of 60 days or less are valued at amortized cost, which 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 its 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 $11,796,988 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.
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 such losses against any future realized capital
gains. At October 31, 2004, the Trust had an accumulated capital loss
carryforward for tax purposes of $303,797, which will expire on October 31,
2012.
22
VAN KAMPEN TRUST FOR INSURED MUNICIPALS
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........................ $244,190,344
============
Gross tax unrealized appreciation........................... $ 15,595,434
Gross tax unrealized depreciation........................... (48,504)
------------
Net tax unrealized appreciation on investments.............. $ 15,546,930
============
</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 and a portion of futures 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........................................... $ 6,491
Long-term capital gain.................................... 1,646,215
----------
$1,652,706
==========
</Table>
F. INSURANCE EXPENSE The Trust typically invests in insured bonds. Any portfolio
securities not specifically covered by a primary insurance policy are insured
either through secondary market insurance or portfolio insurance. The insurance
policies guarantee the timely payment of principal and interest on the
securities in the Trust's portfolio.
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
For the six months ended April 30, 2005, the Trust recognized expenses of
approximately $5,100 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 $21,500
representing Van Kampen's 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.
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
23
VAN KAMPEN TRUST FOR INSURED MUNICIPALS
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2005 (UNAUDITED) continued
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 $53,163,215 and $40,937,069,
respectively.
4. DERIVATIVE FINANCIAL INSTRUMENTS
A derivative financial instrument in very general terms refers to a security
whose value is "derived" from the value of an underlying asset, reference rate,
or index.
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.
In order to seek to manage the interest rate exposure of the Trust's
portfolio in a changing interest rate environment, the Trust may purchase or
sell financial futures contracts or engage in transactions involving interest
rate swaps, caps, floors or collars. The Trust expects to enter into these
transactions primarily as a hedge against anticipated interest rate or fixed
income market changes, for duration management or for risk management purposes,
but may also enter into these transactions to generate additional income. All of
the Trust's portfolio holdings, including derivative instruments, are marked to
market each day with the change in value reflected in unrealized
appreciation/depreciation. Upon disposition, a realized gain or loss is
recognized accordingly, except when taking delivery of a security underlying a
futures contract. In this instance, the recognition of gain or loss is postponed
until the disposal of the security underlying the future contract.
During the period, the Trust invested in futures contracts, a type of
derivative. A futures contract is an arrangement involving the delivery of a
particular asset on a specified future date at an agreed upon price. The Trust
generally invests in exchange traded futures on U.S. Treasury Bonds and Notes
and typically closes the contract prior to the delivery date.
24
VAN KAMPEN TRUST FOR INSURED MUNICIPALS
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2005 (UNAUDITED) continued
Upon entering into futures contracts, the Trust maintains an amount of cash or
liquid securities with a value equal to a percentage of the contract amount with
either a futures commission merchant pursuant to the rules and regulations
promulgated under the Investment Company Act of 1940, as amended, or with its
custodian in an account in the broker's name. This amount is known as initial
margin. During the period the futures contract is open, payments are received
from or made to the broker based upon changes in the value of the contract (the
variation margin). The risk of loss associated with a futures contract is in
excess of the variation margin reflected on the Statement of Assets and
Liabilities.
Transaction in futures contracts for the six months ended April 30, 2005,
were as follows:
<Table>
<Caption>
CONTRACTS
Outstanding at October 31, 2004............................. 455
Futures Opened.............................................. 791
Futures Closed.............................................. (953)
----
Outstanding at April 30, 2005............................... 293
====
</Table>
The futures contracts outstanding as of April 30, 2005, and the description
and unrealized appreciation/depreciation are as follows:
<Table>
<Caption>
UNREALIZED
APPRECIATION/
CONTRACTS DEPRECIATION
SHORT CONTRACTS:
U.S. Treasury Notes
5-Year Futures June 2005 (Current Notional Value of
$108,453 per contract).................................... 293 $(243,813)
</Table>
5. PREFERRED SHARES
The Trust has outstanding 3,600 Auction Preferred Shares ("APS") in two series
of 1,800 shares each. Dividends are cumulative and the dividend rate is
generally reset every 28 days for both series through an auction process. The
average rate in effect on April 30, 2005 was 2.770%. During the six months ended
April 30, 2005, the rates ranged from 1.400% to 2.850%.
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.
25
VAN KAMPEN TRUST FOR INSURED MUNICIPALS
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2005 (UNAUDITED) continued
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.
26
VAN KAMPEN TRUST FOR INSURED 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.
27
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.
VIM SAR 6/05 RN05-01322P-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 Insured 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