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 811-5845
Van Kampen Senior Loan Fund
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
1221 Avenue of the Americas, New York, New York 10020
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Ronald Robison
- --------------------------------------------------------------------------------
1221 Avenue of the Americas, New York, New York 10020
- --------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: 212-762-4000
Date of fiscal year end: 7/31
Date of reporting period: 1/31/06
Item 1. Report to Shareholders.
The Fund's semi-annual report transmitted to shareholders pursuant to Rule 30e-1
under the Investment Company Act of 1940 is as follows:
Welcome, Shareholder
In this report, you'll learn about how your investment in Van Kampen
Senior Loan Fund performed during the semi-annual period. The portfolio
management team will provide an overview of the market conditions and
discuss some of the factors that affected investment performance during
the reporting period. In addition, this report includes the fund's
financial statements and a list of fund investments as of January 31,
2006.
THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY A PROSPECTUS FOR THE
FUND BEING OFFERED. THE PROSPECTUS CONTAINS INFORMATION ABOUT THE FUND,
INCLUDING THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES. PLEASE
READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.
MARKET FORECASTS PROVIDED IN THIS REPORT MAY NOT NECESSARILY COME TO
PASS. THERE IS NO ASSURANCE THAT THE FUND WILL ACHIEVE ITS INVESTMENT
OBJECTIVE. THE FUND IS SUBJECT TO MARKET RISK, WHICH IS THE POSSIBILITY
THAT THE MARKET VALUES OF SECURITIES OWNED BY THE FUND WILL DECLINE AND
THAT THE VALUE OF THE FUND SHARES MAY THEREFORE BE LESS THAN WHAT YOU
PAID FOR THEM. ACCORDINGLY, YOU CAN LOSE MONEY INVESTING IN THIS FUND.
AN INVESTMENT IN SENIOR LOANS IS SUBJECT TO CERTAIN RISKS SUCH AS LOAN
DEFAULTS AND ILLIQUIDITY DUE TO INSUFFICIENT COLLATERAL BACKING.
<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 1/31/06
<Table>
<Caption>
A SHARES B SHARES C SHARES IB SHARES IC SHARES
since 2/18/2005 since 2/18/2005 since 2/18/2005 since 10/4/1989 since 6/13/2003
- ------------------------------------------------------------------------------------------------------------------------
W/O W/O W/O W/O W/O
AVERAGE ANNUAL SALES W/SALES SALES W/SALES SALES W/SALES SALES W/SALES SALES W/SALES
TOTAL RETURNS CHARGES CHARGES CHARGES CHARGES CHARGES CHARGES CHARGES CHARGES CHARGES CHARGES
Since Inception 3.55% 0.15% 2.83% -0.15% 2.83% 1.84% 5.91% 5.91% 7.84% 7.84%
10-year N/A N/A N/A N/A N/A N/A 4.71 4.71 N/A N/A
5-year N/A N/A N/A N/A N/A N/A 4.93 4.77 N/A N/A
1-year N/A N/A N/A N/A N/A N/A 4.35 1.36 4.23 3.23
6-month 1.77 -1.58 1.40 -1.58 1.40 0.41 1.77 -1.21 1.77 0.78
- ------------------------------------------------------------------------------------------------------------------------
</Table>
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NO GUARANTEE OF
FUTURE RESULTS, AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE FIGURES
SHOWN. FOR THE MOST RECENT MONTH-END PERFORMANCE FIGURES, PLEASE VISIT
VANKAMPEN.COM OR SPEAK WITH YOUR FINANCIAL ADVISOR. INVESTMENT RETURNS AND
PRINCIPAL VALUE WILL FLUCTUATE AND FUND SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THEIR ORIGINAL COST.
The returns shown in this report do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund shares.
Performance of share classes will vary due to differences in sales charges and
expenses. Average annual total return with sales charges includes payment of the
maximum sales charge of 3.25 percent for Class A shares, an early withdrawal
charge of 3.00 percent for Class B shares (in year one and declining to zero
after year five), an early withdrawal charge of 1.00 percent for Class C shares
in year one, and combined distribution fees and service fees of up to 0.25
percent for Class A shares and up to 1.00 percent for Class B and C shares and a
service fee of up to 0.15 percent for Class IC shares. Figures shown above
assume reinvestment of all distributions. The fund's adviser has waived or
reimbursed fees and expenses from time to time; absent such
waivers/reimbursements, the fund's returns would have been lower.
1
Fund Report
FOR THE SIX-MONTH PERIOD ENDED JANUARY 31, 2006
MARKET CONDITIONS
During the six-month period ended January 31, 2006, positive economic and
corporate trends created a favorable backdrop for the senior loan asset class.
The Gulf Coast hurricanes did not dampen the U.S. economy to the extent some had
expected, nor did high oil prices and struggles of the auto industry. Inflation
remained largely contained. By and large, corporations posted good profits,
reflecting on-track business strategies, increasing revenues, strengthening
balance sheets and improving credit quality. Despite some well publicized
exceptions, corporate debt default rates remained low overall. These influences
stoked ongoing demand for senior loans, from institutional and individual
investors alike.
Moreover, the adjustable-rate characteristics of senior loans proved
particularly beneficial during the period. Because the yields of senior loans
adjust in tandem to changes in short-term interest rates, the asset class was
well positioned as interest rates rose across the short- and intermediate-term
portions of the bond market.
The strong demand for senior loans was met by robust supply in both the primary
and secondary markets. Merger-and-acquisition activity, leveraged buyouts
(private-to-public transactions), sponsor-driven dividend loans and second lien
loans were among the activities spurring issuance. In this environment, yield
spreads in the senior loan market held steady.
PERFORMANCE ANALYSIS
The fund returned 1.77 percent for the six months ended January 31, 2006 (Class
A shares, unadjusted for sales charges).
TOTAL RETURN FOR THE SIX-MONTH PERIOD ENDED JANUARY 31, 2006
<Table>
<Caption>
- -------------------------------------------------------------
CLASS A CLASS B CLASS C CLASS IB CLASS IC
1.77% 1.40% 1.40% 1.77% 1.77%
- -------------------------------------------------------------
</Table>
The performance for the five share classes varies because each has different
expenses. The fund's total return figures assume the reinvestment of all
distributions, but do not reflect the deduction of any applicable sales charges.
Such costs would lower performance. Past performance is no guarantee of future
results. See Performance Summary for standardized performance information.
We believe that the rigor of our approach and our experience in the senior loan
market were principal drivers of the fund's performance of the period. We
managed the fund according to our research intensive, time-tested approach,
seeking to balance yield with a stable net asset value. Our investment process
2
focused on identifying companies with strong management, solid and predictable
cash flows, and sufficient collateral in the event of default.
Consistent with our dedication to risk management, we diversified the portfolio
broadly across the senior loan market. We followed a bottom-up security
selection process, with investment decisions driven principally by our analysis
of individual company fundamentals. That said, the portfolio construction
process was also informed by our comprehensive analysis of larger industry and
sector trends. Notably, the fund's positioning reflected a defensive tilt
throughout the period. Our criteria led us to favor senior loans in sectors that
typically provide stable performance throughout an economic cycle. For example,
the fund includes debt issued by food, drug and beverage companies, cable
broadcasters, and leisure companies. These companies have historically enjoyed
steady day-to-day demand for goods and services. The fund also included holdings
in the defense industry; these issuers were well positioned to benefit from
long-term demand trends, and held extensive hard assets as loan collateral.
In contrast, we avoided companies we believed to be especially susceptible to
cyclical economic downturns or rising fuel prices. We were particularly
circumspect in regard to the highly leveraged auto and airline industries. This
prudence served the fund well during the period. We were extremely cautious
about the health care sector as well, based on concerns that an uncertain
regulatory environment and Medicaid reduction initiatives could create ongoing
turbulence for the sector.
The fund included a minimal stake in equities which it received through
corporate restructurings. This exposure contributed a degree of volatility to
overall performance during the period.
There is no guarantee that any sectors mentioned will continue to perform well
or that securities in such sectors will be held by the fund in the future.
3
<Table>
<Caption>
SUMMARY OF INVESTMENTS BY INDUSTRY CLASSIFICATION AS OF 1/31/06
Broadcasting--Cable 8.7%
Beverage, Food & Tobacco 7.4
Hotels, Motels, Inns & Gaming 6.8
Entertainment & Leisure 6.5
Printing & Publishing 6.0
Automotive 5.5
Healthcare 5.5
Chemicals, Plastics & Rubber 5.0
Containers, Packaging & Glass 4.5
Buildings & Real Estate 3.5
Ecological 3.2
Aerospace/Defense 2.9
Medical Products & Services 2.5
Finance 2.4
Natural Resources 2.2
Utilities 2.1
Telecommunications--Local Exchange Carriers 2.1
Healthcare & Beauty 2.1
Electronics 2.0
Technology 2.0
Personal & Miscellaneous Services 1.7
Construction Material 1.5
Pharmaceuticals 1.5
Insurance 1.5
Home & Office Furnishings, Housewares & Durable Consumer
Products 1.4
Machinery 1.2
Retail--Specialty 1.1
Restaurants & Food Services 1.1
Diversified Manufacturing 1.0
Telecommunications--Wireless 1.0
Retail--Stores 1.0
Mining, Steel, Iron & Non-Precious Metals 0.9
Retail--Oil & Gas 0.8
Paper & Forest Products 0.7
Broadcasting--Radio 0.7
Business Equipment 0.5
Non-Durable Consumer Products 0.5
Transportation--Rail Manufacturing 0.5
Farming & Agricultural 0.4
Textiles & Leather 0.3
Grocery 0.3
Transportation--Cargo 0.3
Broadcasting--Diversified 0.2
Broadcasting--Television 0.1
Telecommunications--Long Distance 0.1
Transportation--Personal 0.0
-----
Total Long-Term Investments 103.2%
Short-Term Investments 1.7
Borrowings -5.6
Assets in Excess of Other Liabilities 0.7
-----
Net Assets 100.0%
</Table>
4
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. Summary of investments by industry
classification percentages are as a percentage of net assets. 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.
5
FOR MORE INFORMATION ABOUT PORTFOLIO HOLDINGS
Each Van Kampen fund provides a complete schedule of portfolio holdings
in its semiannual and annual reports within 60 days of the end of the
fund's second and fourth fiscal quarters by filing the schedule
electronically with the Securities and Exchange Commission (SEC). The
semiannual reports are filed on Form N-CSRS and the annual reports are
filed on Form N-CSR. Van Kampen also delivers the semiannual and annual
reports to fund shareholders, and makes these reports available on its
public Web site, www.vankampen.com. In addition to the semiannual and
annual reports that Van Kampen delivers to shareholders and makes
available through the Van Kampen public Web site, each fund files a
complete schedule of portfolio holdings with the SEC for the fund's first
and third fiscal quarters on Form N-Q. Van Kampen does not deliver the
reports for the first and third fiscal quarters to shareholders, nor are
the reports posted to the Van Kampen public Web site. You may, however,
obtain the Form N-Q filings (as well as the Form N-CSR and N-CSRS
filings) by accessing the SEC's Web site, http://www.sec.gov. You may
also review and copy them at the SEC's Public Reference Room in
Washington, DC. Information on the operation of the SEC's Public
Reference Room may be obtained by calling the SEC at (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 (800) 847-2424.
6
HOUSEHOLDING NOTICE
To reduce fund expenses, the fund attempts to eliminate duplicate
mailings to the same address. The fund delivers a single copy of certain
shareholder documents to investors who share an address, even if the
accounts are registered under different names. The fund's prospectuses
and shareholder reports (including annual privacy notices) will be
delivered to you in this manner indefinitely unless you instruct us
otherwise. You can request multiple copies of these documents by either
calling (800) 341-2911 or writing to Van Kampen Investor Services at 1
Parkview Plaza, P.O. Box 5555, Oakbrook Terrace, IL 60181. Once Investor
Services has received your instructions, we will begin sending individual
copies for each account within 30 days.
PROXY VOTING POLICY AND PROCEDURES AND PROXY VOTING RECORD
You may obtain a copy of the fund's Proxy Voting Policy and Procedures
without charge, upon request, by calling toll free (800) 847-2424 or by
visiting our Web site at www.vankampen.com. It is also available on the
Securities and Exchange Commission's Web site at http://www.sec.gov.
You may obtain information regarding how the fund voted proxies relating
to portfolio securities during the most recent twelve-month period ended
June 30 without charge 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.
7
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments of Class A Shares
and contingent deferred sales charges on redemptions of Class B and Class C
Shares; and (2) ongoing costs, including management fees; distribution and
service (12b-1) fees; and other Fund expenses. This example is intended to help
you understand your ongoing cost (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period 08/01/05-01/31/06.
ACTUAL EXPENSE
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, and $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing cost of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) or contingent deferred sales charges. Therefore, the second line
of the table is useful in comparing ongoing costs only, and will not help you
determine the relative total costs of owning different funds. In addition, if
these transactional costs were included, your cost would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
------------------------------------------------
8/1/05 1/31/06 8/1/05-1/31/06
Class A
Actual...................................... $1,000.00 $1,017.73 $7.68
Hypothetical................................ 1,000.00 1,017.61 7.68
(5% annual return before expenses)
Class B
Actual...................................... 1,000.00 1,013.98 11.47
Hypothetical................................ 1,000.00 1,013.81 11.47
(5% annual return before expenses)
Class C
Actual...................................... 1,000.00 1,013.98 11.47
Hypothetical................................ 1,000.00 1,013.81 11.47
(5% annual return before expenses)
Class IB
Actual...................................... 1,000.00 1,017.71 7.68
Hypothetical................................ 1,000.00 1,017.61 7.68
(5% annual return before expenses)
Class IC
Actual...................................... 1,000.00 1,017.72 7.68
Hypothetical................................ 1,000.00 1,017.61 7.68
(5% annual return before expenses)
</Table>
* Expenses are equal to the Fund's annualized expense ratio of 1.51%, 2.26%,
2.26%, 1.51% and 1.51% for Class A, B, C, IB and IC Shares, respectively,
multiplied by the average account value over the period, multiplied by
184/365 (to reflect the one-half year period). These ratios reflect an
expense waiver.
Assumes all dividends and distributions were reinvested.
8
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED)
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- -------------------------------------------------------------------------------------------------
VARIABLE RATE** SENIOR LOAN INTERESTS 100.5%
AEROSPACE/DEFENSE 2.9%
$10,584 Alion Science and
Technology Corp., Term
Loan...................... B1 B+ 6.45% 08/02/09 $ 10,584,139
2,700 AM General, LLC, Term Loan 8.87 to
(a)....................... NR NR 10.50 11/01/11 2,789,999
1,875 Anteon International
Corp., Term Loan (a)...... Ba2 BB 6.32 12/31/10 1,892,198
664 Apptis, Inc., Term Loan... B2 B+ 7.81 01/05/10 668,104
4,225 ARINC, Inc., Term Loan.... Ba3 BB 6.20 03/10/11 4,285,481
1,179 DynCorp International, 6.81 to
LLC, Term Loan............ B2 B+ 7.44 02/11/11 1,190,840
2,000 IAP Worldwide Services,
Inc., Term Loan........... B2 B+ 7.63 12/30/12 2,023,750
2,587 ILC Industries, Inc., Term
Loan...................... NR NR 7.03 02/24/12 2,625,805
9,791 K&F Industries, Inc., Term 6.81 to
Loan...................... B2 B+ 8.25 11/18/12 9,912,900
4,168 SI International, Inc.,
Term Loan................. B1 B+ 5.78 02/09/11 4,202,369
9,211 SpiritAero Systems, Inc.,
Term Loan................. B1 BB- 6.85 12/31/11 9,346,706
1,470 TransDigm, Inc.,
Term Loan................. B1 B+ 6.58 07/22/10 1,490,508
4,938 Wyle Laboratories, Inc.,
Term Loan................. NR B+ 7.02 01/28/11 5,016,384
-------------
56,029,183
-------------
AUTOMOTIVE 5.5%
6,031 Accuride Corp., Term Loan 6.25 to
(a)....................... B1 B+ 6.75 01/31/12 6,111,572
19,235 Federal-Mogul Corp., Term
Loan (b).................. NR NR 8.31 12/09/06 19,282,634
8,855 Federal-Mogul Corp.,
Revolving Credit Agreement
(b)....................... NR NR 8.31 12/09/06 8,882,444
2,178 Heartland Automotive
Holdings, Inc., Term 7.39 to 01/31/10 to
Loan...................... NR NR 11.39 01/31/12 2,201,302
21,243 Hertz Corp., Term Loan.... Ba2 BB 6.65 12/21/12 21,568,550
10,421 MetoKote Corp., 7.47 to
Term Loan................. B2 B+ 7.67 11/27/11 10,421,250
4,080 Polypore, Inc., Term
Loan...................... B2 B 7.53 11/12/11 4,061,005
14,994 Safelite Glass Corp., Term 8.52 to
Loan (c).................. NR NR 9.02 09/30/07 14,844,373
3,574 Tenneco Automotive, Inc.,
Term Loan................. B1 B+ 6.63 12/12/10 3,632,933
</Table>
See Notes to Financial Statements 9
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- -------------------------------------------------------------------------------------------------
AUTOMOTIVE (CONTINUED)
$15,604 TRW Automotive, Inc., Term 6.00 to 10/29/10 to
Loan...................... Ba2 BB+ 6.25% 06/30/12 $ 15,640,685
1,808 United Components, Inc.,
Term Loan................. B1 BB- 6.81 06/30/10 1,836,589
-------------
108,483,337
-------------
BEVERAGE, FOOD & TOBACCO 7.4%
13,000 Acosta Sales Co., Inc., 6.67 to 12/06/12 to
Term Loan (a)............. NR NR 10.17 06/06/13 13,185,625
9,269 Birds Eye Foods, Inc., 7.28 to
Term Loan (a)............. B1 B+ 7.36 06/30/08 9,402,162
1,097 Buffets Holdings, Inc.,
Term Loan................. B1 B- N/A 06/28/09 1,108,165
8,705 Commonwealth Brands, Inc.,
Term Loan (a)............. NR NR 7.00 12/22/12 8,809,123
4,612 Constellation Brands, 5.75 to
Inc., Term Loan........... Ba2 BB 6.31 11/30/11 4,671,772
3,639 Culligan International
Co., Term Loan............ B1 B+ 6.97 09/30/11 3,690,007
3,591 Doane Pet Care Co., Term 6.62 to
Loan...................... B1 BB- 6.94 10/24/12 3,642,621
9,135 Dole Food Co., Inc., Term 5.63 to 07/22/10 to
Loan...................... Ba3 BB 9.44 04/18/12 9,268,198
7,836 DS Waters Enterprises, LP,
Term Loan................. Caa3 CCC 9.03 11/07/09 7,568,497
1,200 Eight O'clock Coffee Co.,
Term Loan................. NR NR 7.69 11/14/11 1,215,000
2,000 Le-Nature's, Inc., Term 7.88 to
Loan...................... B1 B 9.25 06/23/10 2,030,000
5,975 Luigino's, Inc., Term 7.44 to
Loan...................... B1 B+ 7.63 04/02/11 6,027,670
1,167 Mafco Worldwide Corp.,
Term Loan................. B1 B+ 6.50 12/08/11 1,179,675
6,274 Michael Foods, Inc., Term 6.50 to
Loan...................... B1 B+ 6.67 11/21/10 6,361,395
7,201 National Dairy Holdings,
LP, Term Loan............. B1 NR 6.57 03/15/12 7,241,103
3,000 National Distributing Co.,
Inc., Term Loan........... NR NR 11.06 06/22/10 3,007,500
1,670 OSI Foods GMBH & Co. KG,
Term Loan................. NR NR 6.53 09/02/11 1,692,355
5,846 OSI Group, LLC,
Term Loan................. NR NR 6.53 09/02/11 5,923,244
4,373 PBM Products, LLC, Term 7.39 to
Loan...................... NR NR 7.56 07/26/11 4,424,998
</Table>
10 See Notes to Financial Statements
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- -------------------------------------------------------------------------------------------------
BEVERAGE, FOOD & TOBACCO (CONTINUED)
$ 5,083 Pierre Foods, Inc., Term
Loan...................... B1 B+ 5.56% 06/30/10 $ 5,150,434
25,592 Pinnacle Foods, Inc., Term
Loan...................... B1 B+ 7.78 11/25/10 25,956,334
750 Reddy Ice Group, Inc.,
Term Loan................. B1 B+ 6.32 08/09/12 757,735
8,178 Sturm Foods, Inc., Term 7.25 to 05/26/11 to
Loan...................... NR NR 11.50 05/26/12 8,266,581
1,657 Sunny Delight Beverage 8.36 to
Co., Term Loan............ B2 B 8.63 08/20/10 1,644,923
3,970 Volume Services America, 7.89 to
Inc., Term Loan........... B2 NR 8.50 10/01/10 4,007,219
-------------
146,232,336
-------------
BROADCASTING--CABLE 8.7%
1,600 Adelphia Communications
Corp., Term Loan (a)...... NR NR 6.31 03/31/06 1,608,000
5,306 Cebridge Connections, 7.25 to
Inc., Term Loan........... NR NR 9.25 02/23/09 5,338,659
8,700 Century Cable Holdings,
LLC, Term Loan (b)........ NR NR 9.25 06/30/09 8,487,033
54,242 Charter Communications
Operating, LLC, Term Loan 7.67 to 04/27/10 to
(a)....................... B2 B 7.92 04/07/11 54,651,033
10,904 Frontiervision Operating
Partners, LP, Term Loan 8.65 to 09/30/05 to
(b) (j)................... NR NR 8.78 03/31/06 10,935,769
927 Frontiervision Operating
Partners, LP, Revolving
Credit Agreement (b)
(j)....................... NR NR 8.65 10/31/05 928,907
12,959 Hilton Head
Communications, LP, Term
Loan (b).................. NR NR 8.50 03/31/08 12,578,570
16,340 Hilton Head
Communications, LP,
Revolving Credit Agreement
(b)....................... NR NR 7.25 09/30/07 15,822,561
4,383 MCC Iowa, LLC, 6.36 to
Term Loan................. Ba3 BB- 6.64 02/01/14 4,447,539
46,655 Olympus Cable Holdings, 8.50 to 06/30/10 to
LLC, Term Loan (b)........ NR NR 9.25 09/30/10 45,507,460
7,039 Parnassos, LP, Term Loan
(b)....................... NR NR 7.25 06/30/07 6,985,067
3,961 Parnassos, LP, Revolving
Credit Agreement (b)...... NR NR 7.25 06/30/07 3,933,444
-------------
171,224,042
-------------
</Table>
See Notes to Financial Statements 11
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- -------------------------------------------------------------------------------------------------
BROADCASTING--DIVERSIFIED 0.2%
$ 3,990 Entravision Communications
Corp., Term Loan.......... Ba3 B+ 6.03% 03/29/13 $ 4,020,755
-------------
BROADCASTING--RADIO 0.7%
3,794 NextMedia Operating, Inc., 6.40 to 11/15/12 to
Term Loan................. B1 B 8.97 11/15/13 3,833,453
8,959 Spanish Broadcasting
Systems, Inc., Term 6.53 to 06/10/12 to
Loan...................... B1 B+ 8.02 06/10/13 9,090,448
-------------
12,923,901
-------------
BROADCASTING--TELEVISION 0.1%
2,786 HIT Entertainment, Inc.
(England), Term Loan...... B1 B 6.86 03/20/12 2,799,582
-------------
BUILDINGS & REAL ESTATE 3.5%
4,000 AIMCO Properties, LP, Term 6.35 to 11/02/09 to
Loan (a).................. NR NR 6.42 11/09/09 4,059,752
3,333 BioMed Realty, LP, Term
Loan (a).................. NR NR 6.64 05/30/10 3,341,667
10,000 Capital Automotive, LP,
Term Loan (a)............. Ba1 NR 6.31 12/16/10 10,041,250
2,582 CB Richard Ellis Services, 6.01 to
Inc., Term Loan (a)....... Ba3 BB- 6.68 03/31/10 2,610,861
679 Central Parking Corp.,
Term Loan................. Ba3 BB- 6.53 03/31/10 686,539
4,000 Edge-Star Partners, Term
Loan...................... NR NR 7.73 11/18/06 3,980,000
2,345 GEO Group, Inc., Term 6.53 to
Loan...................... Ba3 BB- 6.56 09/14/11 2,368,623
2,000 Harlan Sprague Dawley, 7.05 to
Inc., Term Loan........... B2 B+ 8.75 12/19/11 2,023,750
6,000 Landsource Communities
Development, LLC, Term
Loan...................... NR NR 7.00 03/31/10 6,063,750
7,500 Macerich Partnership, LP,
Term Loan................. NR NR 5.94 04/25/10 7,554,690
1,894 NewKirk Master, LP, Term
Loan...................... Ba2 BB+ 6.14 08/11/08 1,909,646
2,400 Shea Capital I, LLC, Term
Loan...................... NR NR 6.26 10/27/11 2,406,000
2,500 Shea Mountain House, LLC,
Term Loan................. NR NR 6.34 05/11/11 2,519,533
4,500 South Edge, LLC, Term 6.38 to 10/31/07 to
Loan...................... NR NR 6.57 10/31/09 4,526,874
</Table>
12 See Notes to Financial Statements
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- -------------------------------------------------------------------------------------------------
BUILDINGS & REAL ESTATE (CONTINUED)
$ 8,000 WCI Communities, Inc.,
Term Loan................. NR NR 6.37% 12/23/10 $ 8,020,000
6,292 Yellowstone Development,
LLC, Term Loan............ NR NR 6.94 09/30/10 6,329,184
-------------
68,442,119
-------------
BUSINESS EQUIPMENT 0.5%
2,469 ACCO Brands Corp., Term 6.12 to
Loan (a).................. Ba3 BB- 6.35 08/17/12 2,501,461
4,483 Katun Corp., Term Loan.... NR BB- 8.78 06/30/09 4,494,107
3,642 Verifone, Inc., Term
Loan...................... B1 B+ 6.67 06/30/11 3,687,342
-------------
10,682,910
-------------
CHEMICALS, PLASTICS & RUBBER 4.9%
2,600 Basell North America
(Netherlands), Term 6.91 to 09/07/13 to
Loan (a).................. Ba3 B+ 7.67 09/07/14 2,642,580
1,191 Becker-Underwood, Inc., 8.78 to 09/30/11 to
Term Loan................. NR NR 11.53 03/31/12 1,191,000
10,362 Celanese, AG (Germany),
Term Loan (a)............. B1 B+ 6.53 04/06/11 10,491,630
38,686 Huntsman International,
LLC, Term Loan............ Ba3 BB- 6.23 08/16/12 38,939,542
6,697 INVISTA (Netherlands), 6.07 to 04/30/10 to
Term Loan................. Ba3 BB 6.38 04/29/11 6,778,874
7,814 Krayton Polymers, LLC, 6.63 to
Term Loan................. B1 B+ 7.06 12/23/10 7,931,556
6.44 to 11/04/09 to
7,133 Nalco Co., Term Loan...... B1 BB- 6.94 11/04/10 7,231,320
12,108 PQ Corp., Term Loan....... B1 B+ 6.56 02/10/12 12,267,424
7,702 Rockwood Specialties
Group, Inc., Term Loan.... B1 B+ 6.67 07/30/12 7,805,302
-------------
95,279,228
-------------
CONSTRUCTION MATERIAL 1.2%
8,000 AXIA, Inc., Term Loan..... B2 B 7.87 12/21/12 8,020,000
1,940 Brand Services, Inc., Term 7.20 to
Loan (a).................. B2 B 7.53 01/15/12 1,969,761
542 Builders FirstSource, 08/11/11 to
Inc., Term Loan (a)....... B1 BB- 7.03 02/15/12 545,837
1,950 Building Materials Holding
Corp., Term Loan (a)...... NR BB 6.28 06/30/10 1,971,938
5,331 Interline Brands, Inc., 6.24 to
Term Loan................. B1 BB 6.78 12/31/10 5,384,310
399 Panolam Industries
International, Inc.
(Canada), Term Loan....... B1 B+ 7.28 09/30/12 404,985
</Table>
See Notes to Financial Statements 13
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- -------------------------------------------------------------------------------------------------
CONSTRUCTION MATERIAL (CONTINUED)
$ 2,812 Professional Paint, Inc., 7.25 to
Term Loan................. NR NR 7.31 09/30/11 $ 2,833,594
2,309 Werner Holding Co., Inc.,
Term Loan (f)............. Caa2 B- 12.94% 12/11/09 2,020,633
1,123 Werner Holding Co., Inc.,
Term Loan................. Caa2 B- 8.44 06/11/09 1,120,602
-------------
24,271,660
-------------
CONTAINERS, PACKAGING & GLASS 4.5%
3,881 Berry Plastics Corp., Term
Loan (a).................. B1 B+ 6.45 12/02/11 3,936,282
1,763 BWAY Corp., Term Loan
(a)....................... B1 B+ 6.56 06/30/11 1,789,098
1,182 Consolidated Container
Co., LLC, Term Loan....... B2 B- 7.50 12/15/08 1,193,081
1,200 Crown Americas, Inc., Term
Loan...................... Ba2 BB- 6.00 11/15/12 1,209,376
17,963 Dr. Pepper/Seven Up
Bottling Group, Inc., Term 6.45 to
Loan...................... B1 NR 6.49 12/19/10 18,234,996
871 Fleming Packaging Corp.,
Term Loan (b) (d) (e)..... NR NR N/A 08/31/04 8,711
100 Fleming Packaging Corp.,
Revolving Credit Agreement
(b) (d) (e)............... NR NR N/A 03/31/03 1,000
4,239 Graham Packaging Co., Term 6.75 to 10/07/11 to
Loan...................... B2 B 8.81 04/07/12 4,321,091
8,117 Graphic Packaging
International Corp., Term 6.72 to
Loan...................... B1 B+ 7.19 08/08/10 8,251,144
738 Graphic Packaging
International Corp.,
Revolving Credit 7.39 to
Agreement................. B1 B+ 9.25 08/08/09 717,231
4,276 Impress Metal Packaging
Holding B.V.
(Netherlands), Term
Loan...................... NR B+ 7.94 12/31/06 4,297,283
4,639 Kranson Industries, Inc.,
Term Loan................. NR NR 7.28 07/30/11 4,703,242
10,887 Owens-Illinois, Inc., Term 6.18 to 04/01/07 to
Loan...................... B1 BB- 6.35 04/01/08 10,956,387
8,113 Packaging Dynamics, Term 6.53 to 09/29/08 to
Loan...................... NR NR 6.78 09/29/09 8,132,125
2,800 Ranpak Corp., Term Loan... NR NR 7.06 12/14/11 2,822,750
6,198 Smurfit-Stone Container 6.69 to
Corp., Term Loan.......... Ba3 B+ 6.87 11/01/11 6,266,253
</Table>
14 See Notes to Financial Statements
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- -------------------------------------------------------------------------------------------------
CONTAINERS, PACKAGING & GLASS (CONTINUED)
$ 2,144 Smurfit-Stone Container
Corp., Revolving Credit 6.94 to
Agreement................. Ba3 B+ 8.75 11/01/09 $ 2,106,644
6,892 U.S. Can Corp., Term
Loan...................... B3 B 8.31% 01/15/10 6,961,235
2,843 Unifrax Corp., Term
Loan...................... B1 B+ 6.88 03/29/12 2,889,447
-------------
88,797,376
-------------
DIVERSIFIED MANUFACTURING 1.0%
3,306 Chart Industries, Inc., 6.38 to
Term Loan................. B1 B+ 6.63 10/17/12 3,346,875
4,700 Euramax International,
Inc., Term Loan........... Caa1 B- 11.54 06/29/13 4,441,500
12,369 Mueller Group, LLC, Term 6.47 to
Loan...................... B2 B+ 6.92 10/03/12 12,531,343
-------------
20,319,718
-------------
ECOLOGICAL 3.2%
21,289 Allied Waste North
America, Inc., Term Loan 6.09 to
(a)....................... B1 BB 6.73 01/15/12 21,478,587
5,277 Duratek, Inc., Term 7.81 to
Loan...................... B1 BB- 7.94 12/16/09 5,303,477
8,916 Envirocare of Utah, LLC, 7.38 to
Term Loan................. NR NR 10.13 04/13/10 9,108,431
2,717 Environmental Systems
Products Holdings, Term 7.97 to 12/12/08 to
Loan...................... Caa1 NR 14.67 12/12/10 2,769,825
3,649 Great Lakes Dredge & Dock 7.77 to
Corp., Term Loan.......... B3 CCC 8.24 12/22/10 3,703,936
2,600 LVI Services, Inc., Term 7.13 to
Loan...................... NR NR 7.34 11/16/11 2,626,000
1,489 Safety-Kleen Corp., Term 11.33 to
Loan...................... NR NR 11.56 09/15/08 1,527,830
4,600 Synagro Technologies, 6.75 to
Inc., Term Loan........... B2 BB- 6.86 06/21/12 4,621,357
4,156 Waste Services, Inc., Term 7.28 to
Loan...................... B2 B- 7.74 03/31/11 4,201,017
1,200 WasteQuip, Inc.,
Term Loan................. B3 B- 10.53 07/15/12 1,221,000
5,459 WCA Waste Systems, Inc.,
Term Loan................. B2 B 7.53 04/28/11 5,472,397
-------------
62,033,857
-------------
ELECTRONICS 2.0%
3,682 Amkor Technology, Inc.,
Term Loan (a)............. B2 B- 8.88 10/27/10 3,816,436
4,212 Audio Visual Services
Corp., Term Loan.......... B1 NR 7.28 05/18/11 4,254,625
</Table>
See Notes to Financial Statements 15
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- -------------------------------------------------------------------------------------------------
ELECTRONICS (CONTINUED)
$ 565 Eastman Kodak Co., Term 6.61 to
Loan...................... Ba3 B+ 6.85 10/18/12 $ 568,553
7,470 ON Semiconductor Corp.,
Term Loan................. B3 B+ 7.30 12/15/11 7,553,010
13,860 Spectrum Brands, Inc., 6.17 to
Term Loan................. B1 B+ 6.85% 02/06/12 14,007,521
6,386 UGS Corp., Term Loan...... B1 B+ 6.55 03/31/12 6,473,318
3,564 Viasystems, Inc., Term
Loan...................... B2 NR 8.83 09/30/09 3,604,095
-------------
40,277,558
-------------
ENTERTAINMENT & LEISURE 5.6%
1,985 Alliance Atlantis
Communications, Inc., Term
Loan (a).................. Ba2 BB 6.07 12/20/11 2,003,609
498 Blockbuster, Inc., Term 8.04 to
Loan...................... B3 B- 8.73 08/20/11 483,197
1,825 Detroit Red Wings, Inc.,
Term Loan................. NR NR 6.78 08/30/06 1,834,478
8,311 Fender Musical Instruments
Corp., Term Loan.......... B3 B- 8.72 09/30/12 8,352,429
1,822 Festival Fun Parks, LLC, 8.78 to 06/30/07 to
Term Loan................. NR NR 9.28 12/31/07 1,814,177
36,000 Metro-Goldwyn-Mayer
Studios, Inc., Term
Loan...................... NR NR 6.78 04/08/12 36,413,172
538 Metro-Goldwyn-Mayer
Studios, Inc., Revolving
Credit Agreement.......... NR NR 7.07 04/08/10 522,308
2,000 Mets, LP, Term Loan....... NR NR 6.39 07/25/10 2,022,500
360 Movie Gallery, Inc., Term
Loan...................... B2 B- 8.03 04/27/10 344,025
5,302 Panavision, Inc.,
Term Loan................. B3 CCC 10.76 01/12/07 5,368,348
7,667 Pure Fishing, Inc., Term 7.53 to 09/30/10 to
Loan...................... B1 B+ 10.43 03/31/11 7,723,543
8,795 Regal Cinemas, Inc., Term
Loan...................... Ba2 BB- 6.53 11/10/10 8,906,102
400 SFX Entertainment, Inc.,
Term Loan................. B1 B+ 6.76 06/21/13 400,625
7,367 Six Flags Theme Parks, 6.80 to
Inc., Term Loan........... B1 B- 7.05 06/30/09 7,461,982
1,084 Six Flags Theme Parks,
Inc., Revolving Credit 6.64 to
Agreement................. B1 B- 6.76 06/30/08 1,070,134
</Table>
16 See Notes to Financial Statements
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- -------------------------------------------------------------------------------------------------
ENTERTAINMENT & LEISURE (CONTINUED)
$ 4,000 Southwest Sports Group,
LLC, Term Loan............ NR NR 7.06 12/22/10 $ 4,050,000
2,800 Tigers Ballpark, LLC, Term
Loan...................... NR NR 6.19 08/15/10 2,807,000
7,455 True Temper Sports, Inc., 7.45 to
Term Loan................. B2 B 9.25% 03/15/11 7,529,697
7,673 Universal City Development 6.37 to
Partners, LP, Term Loan... Ba3 BB- 6.60 06/09/11 7,770,002
2,011 Yankees Holdings, LP, Term
Loan...................... NR NR 6.85 06/25/07 2,021,486
1,307 Yonkers Racing Corp., Term 8.01 to
Loan...................... NR NR 8.04 08/12/11 1,321,569
-------------
110,220,383
-------------
FARMING & AGRICULTURE 0.4%
7,000 Wm. Bolthouse Farms, Inc., 6.94 to 12/16/12 to
Term Loan (a)............. B2 B- 9.98 12/16/13 7,125,206
-------------
FINANCE 2.4%
8,000 Ameritrade Holding Corp.,
Term Loan (a)............. Ba1 BB 6.04 12/31/12 8,051,000
3,650 DCS Business Services, 10.00 to
Inc., Term Loan........... NR NR 10.25 02/04/11 3,659,125
7,359 Fidelity National
Information Solutions,
Inc., Term Loan........... Ba3 BB 6.19 03/09/13 7,410,837
4,000 LPL Holdings, Inc., Term
Loan...................... B2 B N/A 06/28/13 3,980,000
8,501 Outsourcing Solutions,
Inc., Term Loan........... NR B- 9.07 09/30/10 8,458,836
5,371 Rent-A-Center, Inc., Term 5.76 to
Loan...................... Ba2 BB+ 6.41 06/30/10 5,432,994
2,800 The Nasdaq Stock Market, 6.00 to
Inc., Term Loan........... Ba2 BBB- 6.19 12/08/11 2,828,582
7,073 Transfirst Holdings, Inc., 7.56 to 03/31/10 to
Term Loan................. NR NR 12.06 03/31/11 7,114,436
-------------
46,935,810
-------------
GROCERY 0.3%
6,000 Roundy's Supermarkets, 7.42 to
Inc., Term Loan........... B2 B+ 7.49 11/03/11 5,985,000
-------------
HEALTHCARE 5.5%
3,600 AMN Healthcare Services,
Inc., Term Loan (a)....... Ba2 BB- 6.53 11/20/11 3,638,250
6,400 Capella Healthcare, Inc., 7.45 to 11/30/12 to
Term Loan................. B3 B 10.45 11/30/13 6,442,666
</Table>
See Notes to Financial Statements 17
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- -------------------------------------------------------------------------------------------------
HEALTHCARE (CONTINUED)
$28,139 Community Health Systems,
Inc., Term Loan (a)....... Ba3 BB- 6.16 08/19/11 $ 28,540,929
5,187 Concentra Operating Corp., 6.53 to
Term Loan................. B1 B+ 6.69% 09/30/11 5,257,242
5,350 Center for Diagnostic
Imaging, Term Loan........ B2 B+ 8.03 12/31/10 5,269,693
993 Diagnostic Imaging Group,
LLC, Term Loan............ B2 B+ 7.81 05/04/12 987,538
9,188 FHC Health Systems, Inc., 10.41 to 12/18/09 to
Term Loan................. B2 B 13.41 02/09/11 9,374,614
726 Genoa Healthcare Group, 7.73 to
LLC, Term Loan............ B2 B 9.50 08/10/12 732,945
1,648 Healthtronics, Inc., Term
Loan...................... Ba3 BB- 6.38 03/23/11 1,654,544
29,821 LifePoint Hospitals, Inc.,
Term Loan................. Ba3 BB 6.19 04/15/12 30,035,886
2,236 Multiplan, Inc., Term
Loan...................... Ba3 B+ 7.03 03/04/09 2,264,062
1,600 Radiation Therapy
Services, Inc., Term 6.53 to
Loan...................... B1 BB 7.75 12/16/12 1,611,000
8,320 Select Medical Corp., 6.12 to
Term Loan................. B1 BB- 8.00 02/24/12 8,250,197
533 Select Medical Corp.,
Revolving Credit
Agreement................. B1 BB- 6.76 02/24/11 530,667
2,372 Sterigenics International,
Inc., Term Loan........... B2 B+ 7.50 06/14/11 2,405,030
-------------
106,995,263
-------------
HEALTHCARE & BEAUTY 2.1%
6,740 American Safety Razor Co., 7.15 to 02/28/12 to
Term Loan (a)............. B2 B 10.31 08/28/12 6,640,649
7,531 CEI Holdings, Inc., Term 7.44 to 12/03/10 to
Loan...................... NR NR 11.19 12/03/11 7,124,784
7,056 Marietta Intermediate
Holding Corp., 7.28 to 12/17/10 to
Term Loan................. NR NR 11.85 12/17/11 7,120,340
10,497 MD Beauty, Inc., Term 7.67 to 02/18/12 to
Loan...................... B1 CCC 11.67 02/18/13 10,552,980
8,999 Prestige Brands Holdings, 6.31 to
Inc., Term Loan........... B1 B+ 8.50 04/06/11 9,088,726
-------------
40,527,479
-------------
</Table>
18 See Notes to Financial Statements
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- -------------------------------------------------------------------------------------------------
HOME & OFFICE FURNISHINGS, HOUSEWARES & DURABLE
CONSUMER PRODUCTS 1.4%
$ 6,085 Formica Corp., 9.39 to
Term Loan................. NR NR 9.51 06/10/10 $ 6,115,461
3,825 Hunter Fan Co., 6.94 to
Term Loan................. B1 B 7.17 03/24/12 3,815,438
4,893 Imperial Home Decor Group,
Inc., Term Loan (c) (d)
(e)....................... NR NR N/A 04/04/06 122,337
7,400 National Bedding Co., Term 9.50 to
Loan...................... B3 B+ 9.60% 08/31/12 7,409,250
1,890 Quality Home Brands
Holdings, LLC, Term 7.13 to
Loan...................... NR NR 7.28 11/04/11 1,901,548
6,163 Sealy Mattress Co., Term 6.12 to
Loan...................... B1 B+ 6.23 04/06/12 6,237,729
250 Sealy Mattress Co.,
Revolving Credit
Agreement................. B1 B+ 7.75 04/06/10 245,000
1,575 World Kitchen, Inc., Term
Loan...................... B3 NR 7.75 03/31/08 1,561,360
-------------
27,408,123
-------------
HOTELS, MOTELS, INNS & GAMING 6.8%
1,156 CCM Merger, Corp., Term 6.39 to
Loan (a).................. B1 B+ 6.52 07/19/12 1,163,846
5,600 Greektown Casino, LLC,
Term Loan................. B1 B 7.07 12/03/12 5,677,000
4,913 Green Valley Ranch Gaming,
LLC, Term Loan............ NR NR 6.53 12/17/11 4,977,356
3,771 Herbst Gaming, Inc., Term 6.20 to
Loan...................... B1 B+ 6.53 01/31/11 3,822,181
3,402 Interstate Operating Co.,
LP, Term Loan............. B2 B 9.06 01/14/08 3,453,079
1,005 Isle of Capri Casinos, 6.16 to
Inc., Term Loan........... Ba2 BB- 6.47 02/04/11 1,014,062
5,103 Kuilima Resort Co., Term 7.32 to 09/30/10 to
Loan...................... NR NR 11.07 09/30/11 5,153,582
2,081 Marina District Finance
Co., Term Loan............ NR NR 6.31 10/20/11 2,096,122
14,509 MGM Mirage, Revolving 5.87 to
Credit Agreement.......... Ba2 BB 6.28 04/25/10 14,091,797
400 Pinnacle Entertainment,
Term Loan................. B1 BB- 6.49 12/15/11 403,917
120 Planet Hollywood
International, Inc., Term
Loan (f).................. B3 B- 8.53 08/31/10 118,338
</Table>
See Notes to Financial Statements 19
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- -------------------------------------------------------------------------------------------------
HOTELS, MOTELS, INNS & GAMING (CONTINUED)
$47,172 Planet Hollywood
International, Inc., Term
Loan...................... B3 B- 7.53 08/31/10 $ 46,552,548
4,811 Resorts International
Hotel & Casino, Inc., Term
Loan...................... B3 CCC- 12.03 04/26/13 4,358,380
6,029 Scientific Games Corp.,
Term Loan................. Ba2 BB 6.32% 12/23/09 6,109,436
11,800 Venetian Casino Resorts,
LLC, Term Loan............ Ba3 BB- 6.28 06/15/11 11,917,080
344 Venetian Casino Resorts,
LLC, Revolving Credit
Agreement................. Ba3 BB- 6.27 02/22/10 336,694
21,938 Wynn Las Vegas, LLC, Term
Loan...................... B2 B+ 6.69 12/14/11 22,192,523
-------------
133,437,941
-------------
INSURANCE 1.5%
4,800 Alliant Resources Group, 7.22 to 11/30/11 to
Inc., Term Loan........... B2 NR 11.47 11/30/12 4,862,000
2,796 American Wholesale
Insurance Group, Inc., 7.47 to 10/27/10 to
Term Loan................. NR B 11.99 04/27/12 2,802,990
1,911 CCC Information Services
Group, Inc., Term Loan.... B1 B+ 7.31 08/20/10 1,915,905
3,320 Conseco, Inc., Term
Loan...................... B2 BB- 6.47 06/22/10 3,349,193
5,383 Hilb, Rogal & Hamilton 6.31 to 12/15/09 to
Co., Term Loan............ Ba3 BB 6.81 12/15/11 5,435,206
2,478 Mitchell International,
Inc., Term Loan........... B1 B+ 6.53 08/15/11 2,515,114
7,632 USI Holdings Corp., Term
Loan...................... B1 BB- 7.07 08/11/08 7,665,424
-------------
28,545,832
-------------
MACHINERY 1.2%
4,248 Alliance Laundry Holdings,
LLC, Term Loan (a)........ B1 B 6.73 01/27/12 4,309,065
2,382 Douglas Dynamics, LLC,
Term Loan................. B1 BB- 6.28 12/16/10 2,399,870
1,892 Flowserve Corp., Term 6.19 to
Loan...................... Ba3 BB- 6.50 08/10/12 1,917,869
8,191 Goodman Global Holdings,
Inc., Term Loan........... B2 B+ 6.94 12/23/11 8,318,941
</Table>
20 See Notes to Financial Statements
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- -------------------------------------------------------------------------------------------------
MACHINERY (CONTINUED)
$ 4,000 Penhall International 11.17 to
Corp., Term Loan.......... NR NR 11.21 11/01/10 $ 4,040,000
2,456 United Rentals (North
America), Inc., Term
Loan...................... B2 BB- 6.79 02/14/11 2,486,953
-------------
23,472,698
-------------
MEDICAL PRODUCTS & SERVICES 2.1%
1,600 Accellent, Inc., Term Loan
(a)....................... B2 BB- 6.39% 11/22/12 1,614,000
3,564 American Medial
Instruments Holdings,
Inc., Term Loan........... B2 B+ 7.57 12/09/10 3,599,640
402 Colgate Medical, Ltd.
(England), Term Loan...... Ba2 BB- 6.60 12/30/08 404,536
6.54 to
32,005 DaVita, Inc., Term Loan... B1 BB- 6.94 10/05/12 32,499,783
3,356 Kinetics Concepts, Inc.,
Term Loan................. Ba3 BB 6.28 08/11/10 3,396,274
-------------
41,514,233
-------------
MINING, STEEL, IRON & NON-PRECIOUS METALS 0.9%
4,000 Gibraltar Industries,
Inc., Term Loan........... Ba1 BB 6.28 12/08/12 4,030,000
3,401 New Enterprise Stone &
Lime Co., Inc., Term 6.89 to
Loan...................... NR NR 8.50 07/30/10 3,426,972
7,008 Novelis, Inc., Term
Loan...................... Ba2 BB- 6.01 01/06/12 7,098,498
2,281 Techs Industries, Inc.,
Term Loan................. NR NR 7.57 01/14/10 2,284,102
-------------
16,839,572
-------------
NATURAL RESOURCES 2.2%
399 Cheniere LNG Holdings,
LLC, Term Loan (a)........ NR BB 6.95 08/30/12 402,866
16,146 El Paso Corp., Term
Loan...................... B3 B 7.31 11/23/09 16,274,995
1,711 Foundation PA Coal Co., 6.28 to
Term Loan................. Ba3 BB- 6.44 07/30/11 1,741,762
1,600 Key Energy Services, Inc., 7.02 to
Term Loan................. NR NR 7.52 06/30/12 1,624,667
1,957 SemCrude, LP, 6.74 to
Term Loan................. Ba2 NR 6.78 03/16/11 1,982,089
19,061 Targa Resources, Inc., 6.66 to 10/31/07 to
Term Loan................. Ba3 B+ 6.92 10/31/12 19,161,730
1,296 Universal Compression,
Inc., Term Loan........... Ba2 BB 6.03 02/15/12 1,311,376
-------------
42,499,485
-------------
</Table>
See Notes to Financial Statements 21
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- -------------------------------------------------------------------------------------------------
NON-DURABLE CONSUMER PRODUCTS 0.4%
$ 1,600 Amscan Holdings, Inc.,
Term Loan (a)............. B1 B+ 7.51 12/21/12 $ 1,584,667
4,008 JohnsonDiversey, Inc., 6.76 to
Term Loan................. B1 B+ 7.64 12/16/11 4,048,600
1,194 Mega Bloks, Inc. (Canada),
Term Loan................. Ba3 BB- 6.44 07/27/10 1,210,418
-------------
6,843,685
-------------
PAPER & FOREST PRODUCTS 0.6%
995 NewPage, Corp., Term
Loan...................... B1 B 7.56% 05/02/11 1,007,438
4,231 White Birch Paper, Co.
(Canada), Term Loan....... B2 B+ 7.82 04/06/12 4,288,701
5,970 Xerium Technologies, Inc.,
Term Loan................. B1 B+ 6.53 05/18/12 5,973,731
-------------
11,269,870
-------------
PERSONAL & MISCELLANEOUS SERVICES 1.7%
3,879 Affinion Group, Inc., Term 7.10 to
Loan (a).................. B1 B+ 7.23 10/17/12 3,859,674
1,747 Alderwoods Group, Inc., 6.06 to
Term Loan (a)............. B1 BB- 6.73 09/29/09 1,769,313
2,744 Coinmach Laundry Corp., 7.00 to
Term Loan (a)............. B2 B 7.06 12/19/12 2,787,303
5,806 Educate Operating Co.,
LLC, Term Loan............ B1 B+ 6.53 03/31/12 5,864,186
3,751 Global Imaging Systems, 5.83 to
Inc., Term Loan........... Ba2 NR 6.03 05/10/10 3,779,092
1,625 InfoUSA, Inc., Term
Loan...................... Ba3 BB 8.75 03/25/09 1,629,062
5,172 Iron Mountain, Inc., Term 6.19 to
Loan...................... B2 BB- 6.22 04/02/11 5,214,423
1,271 Omniflight Helicopters, 7.74 to 09/30/11 to
Inc., Term Loan........... NR NR 8.24 09/30/12 1,273,971
4,604 Stewart Enterprises, Inc., 5.77 to
Term Loan................. Ba3 BB 6.25 11/19/11 4,852,852
2,800 Weightwatchers.com, Inc., 6.72 to 12/16/10 to
Term Loan................. B1 B- 9.49 06/16/11 2,833,500
-------------
33,863,376
-------------
PHARMACEUTICALS 1.5%
2,340 Bradley Pharmaceuticals,
Inc., Term Loan........... NR NR 8.35 11/14/10 2,345,850
8,946 MedPointe, Inc., Term 9.06 to 09/30/07 to
Loan...................... B2 B 9.81 09/30/08 8,946,185
17,682 Warner Chilcott Holding 7.01 to
Co., Term Loan............ B2 B 7.44 01/18/12 17,773,298
-------------
29,065,333
-------------
</Table>
22 See Notes to Financial Statements
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- -------------------------------------------------------------------------------------------------
PRINTING & PUBLISHING 6.0%
$ 7,298 Adams Outdoor Advertising,
LP, Term Loan (a)......... B1 B+ 6.62 10/18/12 $ 7,407,801
1,911 ALM Media Holdings, Inc.,
Term Loan................. B3 B- N/A 03/05/10 1,911,597
5,780 American Reprographics 6.26 to
Co., Term Loan (a)........ Ba3 BB- 8.00 06/18/09 5,844,590
1,185 Ascend Media Holdings, 7.02 to
LLC, Term Loan............ NR NR 7.28% 01/31/12 1,186,852
2,985 Canon Communications, LLC,
Term Loan................. B3 B 8.28 05/31/11 2,985,000
9,875 Cygnus Business Media,
Inc., Term Loan........... B3 CCC 9.10 07/13/09 9,825,625
9,975 Day International Group, 7.03 to 12/05/12 to
Inc., Term Loan........... B1 B 11.78 12/05/13 10,090,341
1,060 Dex Media East, LLC, Term 6.05 to
Loan...................... Ba2 BB 6.36 05/08/09 1,069,978
4,802 Dex Media West, LLC, Term 6.05 to
Loan...................... Ba2 BB 6.38 03/09/10 4,845,789
4,550 Endurance Business Media,
Inc., Term Loan........... B1 B 6.74 03/08/12 4,592,656
1,200 Enterprise NewsMedia, LLC,
Term Loan................. NR NR 7.53 06/30/12 1,215,000
1,420 FSC Acquisition, LLC, Term 6.33 to
Loan...................... B2 B 6.69 08/01/12 1,427,426
7,651 Haights Cross
Communications, LLC, Term 7.84 to
Loan...................... B3 B- 8.84 08/20/08 7,737,396
4,060 Herald Media, Inc., Term 7.28 to 07/22/11 to
Loan...................... NR NR 10.28 01/22/12 4,095,639
8,115 Liberty Group Operating, 6.69 to
Inc., Term Loan........... B1 B+ 8.25 02/28/12 8,193,803
2,373 MC Communications, LLC,
Term Loan................. NR NR 6.54 12/31/10 2,391,282
672 MediaNews Group, Inc.,
Term Loan................. NR NR 5.81 12/30/10 673,767
8,244 Merrill Communications,
LLC, Term Loan............ B1 B+ 6.81 12/22/12 8,348,336
1,900 Network Communications, 6.97 to
Inc., Term Loan........... Ba3 B+ 7.28 11/30/12 1,918,407
6,667 New Publications, Inc., 6.55 to
Term Loan................. NR NR 11.35 08/05/12 6,515,280
6,800 Primedia, Inc., Term
Loan...................... NR NR 6.65 09/30/13 6,734,550
247 Primedia, Inc., Revolving 6.94 to
Credit Agreement.......... NR NR 7.00 06/30/08 237,274
</Table>
See Notes to Financial Statements 23
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- -------------------------------------------------------------------------------------------------
PRINTING & PUBLISHING (CONTINUED)
$14,804 R.H. Donnelley, Inc., Term 5.95 to 12/31/09 to
Loan...................... Ba3 BB 6.53 06/30/11 $ 14,919,928
1,480 SGS International, Inc., 6.9 to
Term Loan................. B1 B+ 7.21 12/30/11 1,498,500
1,898 Source Media, Inc., Term
Loan...................... B1 NR 6.85 11/08/11 1,922,463
-------------
117,589,280
-------------
RESTAURANTS & FOOD SERVICE 1.1%
2,164 Burger King Corp., Term
Loan (a).................. Ba2 B+ 6.31% 06/30/12 2,189,698
2,716 Captain D's, LLC, Term 8.31 to 12/27/10 to
Loan...................... NR NR 10.56 06/27/11 2,737,775
5,794 Carrols Corp., Term Loan
(a)....................... B1 B+ 7.00 12/31/10 5,880,695
3,184 Denny's Corp., Term 7.30 to 09/30/09 to
Loan...................... B3 CCC 9.85 09/30/10 3,264,032
400 El Pollo Loco, Inc., Term 7.39 to
Loan...................... B3 B+ 7.56 11/18/11 404,625
3,055 Landry's Restaurants, 5.95 to
Inc., Term Loan........... Ba2 BB- 6.28 12/28/10 3,087,674
3,972 Triarc, Cos., 6.66 to
Term Loan (a)............. B1 B+ 6.92 07/25/12 4,002,628
-------------
21,567,127
-------------
RETAIL--OIL & GAS 0.8%
5,800 The Pantry, Inc.,
Term Loan................. Ba3 BB- 6.14 01/02/12 5,870,690
10,500 Travelcenters of America, 6.16 to
Inc., Term Loan........... B1 BB 6.44 12/01/11 10,622,063
-------------
16,492,753
-------------
RETAIL--SPECIALTY 1.0%
11,351 Nebraska Book Co., Inc.,
Term Loan................. B2 B 6.70 03/04/11 11,400,497
8,836 Visant Holding Corp., Term
Loan...................... B1 B+ 6.78 10/04/11 8,964,470
-------------
20,364,967
-------------
RETAIL--STORES 0.8%
2,782 Advance Stores Co., Inc., 5.94 to
Term Loan (a)............. Ba1 BB+ 6.06 09/30/10 2,814,026
12,342 Neiman Marcus Group, Inc.,
Term Loan................. B1 B+ 6.95 04/06/13 12,491,885
-------------
15,305,911
-------------
</Table>
24 See Notes to Financial Statements
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- -------------------------------------------------------------------------------------------------
TECHNOLOGY 2.0%
$ 2,743 Double Click, Inc., Term
Loan...................... B2 B 8.34 07/13/12 $ 2,784,272
36,160 Sungard Data Systems,
Inc., Term Loan........... B1 B+ 6.81 02/11/13 36,574,309
-------------
39,358,581
-------------
TELECOMMUNICATIONS--LOCAL EXCHANGE CARRIERS 1.9%
3,591 Cincinnati Bell, Inc., 5.89 to
Term Loan (a)............. Ba3 B+ 6.06 08/31/12 3,620,737
11,200 Fairpoint Communications,
Inc., Term Loan........... B1 BB- 6.31 02/08/12 11,239,200
3,500 Hawaiian Telecom, Inc.,
Term Loan................. B1 B 6.78% 10/31/12 3,533,908
1,600 Madison River Capital,
LLC, Term Loan............ B1 B+ 6.80 07/29/12 1,616,501
6,579 Orius Corp., LLC, Term 01/23/09 to
Loan (b)(c)(d)............ NR NR 11.75 01/23/10 1,671,112
2,377 Orius Corp., LLC,
Revolving Credit Agreement
(c) (j)................... NR NR 6.80 01/31/06 2,127,239
9,865 Qwest Corp., Term Loan.... Ba3 BB 9.22 06/30/07 10,113,724
800 Sorenson Communications,
Inc., Term Loan........... NR NR 7.49 11/15/12 812,000
2,900 Valor Telecommunications, 5.81 to
LLC, Term Loan............ Ba3 BB- 6.32 02/14/12 2,913,366
-------------
37,647,787
-------------
TELECOMMUNICATIONS--LONG DISTANCE 0.1%
2,400 Time Warner Telecom, Inc., 6.92 to
Term Loan................. B1 B 7.11 11/30/10 2,440,999
-------------
TELECOMMUNICATIONS--WIRELESS 0.7%
1,800 AAT Communications Corp.,
Term Loan................. B2 BB+ 7.16 07/29/13 1,822,874
2,372 Cellular South, Inc., Term 6.27 to
Loan (a).................. NR NR 7.75 05/04/11 2,401,609
8,708 Centennial Cellular, Inc., 6.45 to
Term Loan (a)............. B1 B 6.83 02/09/11 8,836,537
-------------
13,061,020
-------------
TEXTILES & LEATHER 0.3%
6,192 The William Carter Co., 5.81 to
Term Loan................. B1 BB 6.54 07/14/12 6,264,706
-------------
TRANSPORTATION--CARGO 0.3%
1,822 Jacobson Acquisition Co., 7.31 to 04/07/09 to
Term Loan................. NR NR 8.56 04/07/11 1,826,778
800 Kenan Advantage Group,
Inc., Term Loan........... NR NR 7.50 12/16/11 808,000
</Table>
See Notes to Financial Statements 25
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- -------------------------------------------------------------------------------------------------
TRANSPORTATION--CARGO (CONTINUED)
$ 2,200 Quality Distribution, 7.51 to
Inc., Term Loan........... Caa1 B- 7.57 11/13/09 $ 2,211,360
720 Quality Distribution,
Inc., Revolving Credit
Agreement................. Caa1 B- 9.75 11/13/08 720,000
-------------
5,566,138
-------------
TRANSPORTATION--PERSONAL 0.0%
934 Neoplan USA Corp.,
Revolving Credit Agreement
(c) (e)................... NR NR 8.54 06/30/06 933,750
-------------
TRANSPORTATION--RAIL MANUFACTURING 0.5%
9,253 Helm Holding Corp., Term 6.80 to 07/08/11 to
Loan...................... NR NR 10.80% 07/08/12 9,417,052
-------------
UTILITIES 2.1%
12,063 Allegheny Energy, Inc., 5.51 to
Term Loan (a)............. Ba2 BBB- 6.35 03/08/11 12,183,705
2,705 Coleto Creek WLE, LP, Term
Loan (a).................. Ba3 BB 6.53 06/30/11 2,732,449
400 La Paloma Generating Co.,
LLC, Term Loan............ B2 B 8.03 08/16/13 406,375
4,000 Mirant North America, LLC,
Term Loan................. Ba3 BB- 8.00 01/03/13 4,030,000
3,211 Pike Electric, Inc., Term 07/01/12 to
Loan...................... NR NR 6.25 12/10/12 3,251,118
4,200 Primary Energy Operations,
LLC, Term Loan............ NR NR 7.16 08/24/09 4,249,001
8,777 Reliant Energy Resources
Corp., Term Loan.......... B1 B+ 6.09 04/30/10 8,770,893
2,353 Reliant Energy Resources
Corp., Revolving Credit 7.31 to
Agreement................. B1 B+ 7.44 12/22/09 2,241,176
4,092 Thermal North America,
Inc., Term Loan........... Ba3 BB- 6.28 10/12/13 4,124,945
-------------
41,989,662
-------------
TOTAL VARIABLE RATE** SENIOR LOAN INTERESTS 100.5%............................... 1,972,366,584
-------------
</Table>
<Table>
NOTES 1.7%
Boise Cascade, LLC ($2,800,000 par, 7.48% coupon, maturing 10/15/12) (g)..... 2,737,000
Builders FirstSource, Inc. ($6,300,000 par, 8.04% coupon, maturing 02/15/12)
(g)........................................................................ 6,473,250
Compression Polymers Corp. ($2,300,00 par, 11.44% coupon, maturing 07/01/12)
(g)........................................................................ 2,311,500
Del Laboratories, Inc. ($3,600,000 par, 9.68% coupon, maturing 11/01/11)
(g)........................................................................ 3,690,000
</Table>
26 See Notes to Financial Statements
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
<Table>
<Caption>
DESCRIPTION VALUE
- ----------------------------------------------------------------------------------------------
Insight Health Services Corp. ($8,000,000 par, 9.93% coupon, maturing
11/01/11) (g).............................................................. $ 7,480,000
Qwest Corp. ($3,500,000 par, 7.74% coupon, maturing 06/15/13) (g)............ 3,793,125
Rogers Wireless Communications, Inc. ($6,000,000 par, 7.62% coupon, maturing
12/15/10) (Canada) (g)..................................................... 6,217,500
US Unwired, Inc. ($800,000 par, 8.74% coupon, maturing 06/15/10) (g)......... 828,000
--------------
TOTAL NOTES 1.7%............................................................ 33,530,375
--------------
EQUITIES 1.0%
Aladdin Gaming Holdings, LLC (8.63% ownership interest, acquired 09/03/04,
Cost $240,062) (h) (i)..................................................... 83,157
DecorateToday.com (198,600 common shares, Acquisition date 12/31/98, Cost
$3,505,909) (c) (h) (i).................................................... 1,958,196
Environmental Systems Products Holdings, Inc. (2,183 common shares,
Acquisition date 06/22/04, Cost $0) (h) (i)................................ 74,681
IDT Corp. (22,898 common shares) (h)......................................... 282,790
Imperial Home Decor Group, Inc. (1,816,143 common shares, Acquisition date
04/26/01, Cost $1,852,465) (c) (e) (h) (i)................................. 0
London Clubs International (Warrants for 141,981 common shares, Acquisition
date 10/15/04, Cost $260,910) (h) (i)...................................... 349,197
London Fog Industries, Inc. (515,922 common shares) (c) (h).................. 0
Neoplan USA Corp. (2,262 preferred shares, Acquisition date 09/04/03, Cost
$1,074,522) (c) (e) (h) (i)................................................ 0
Neoplan USA Corp. (8,517 common shares, Acquisition date 09/04/03, Cost $85)
(c) (e) (h) (i)............................................................ 0
Orius Corp. (1,211,236 common shares, Acquisition date 02/03/03, Cost $0) (b)
(c) (h) (i)................................................................ 0
Planet Hollywood International, Inc. (Warrants for 95,324 common shares,
Acquisition date 09/03/04, Cost $0) (h) (i)................................ 0
RailWorks Corp. (Warrants for 1,037 common shares, Acquisition date 07/28/05,
Cost $2,560,327) (h) (i)................................................... 0
Rotech Medical Corp. (94,289 common shares, Acquisition date 06/12/02, Cost
$377,156) (h) (i).......................................................... 0
Safelite Glass Corp. (724,479 common shares, Acquisition date 10/20/00, Cost
$3,912,187) (c) (h) (i).................................................... 0
Safelite Realty (48,903 common shares, Acquisition date 10/20/00, Cost $0)
(c) (h) (i)................................................................ 0
Targus Group International (Warrants for 66,824 common shares, Acquisition
date 01/30/04, Cost $0) (h) (i)............................................ 133,648
Trans World Entertainment Corp. (3,288,962 common shares, Acquisition date
03/03/98, Cost $60,310,984) (c) (h) (i).................................... 17,234,161
--------------
TOTAL EQUITIES 1.0%......................................................... 20,115,830
--------------
TOTAL LONG-TERM INVESTMENTS 103.2%
(Cost $2,113,740,332)...................................................... 2,026,012,789
--------------
</Table>
See Notes to Financial Statements 27
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
<Table>
<Caption>
DESCRIPTION VALUE
- ----------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS 1.7%
REPURCHASE AGREEMENT 1.1%
State Street Bank & Trust Corp. ($21,000,000 par collateralized by U.S.
Government obligations in a pooled cash account, interest rate of 4.39%
dated 01/31/06, to be sold on 02/01/06 at $21,002,561) (a)................. $ 21,000,000
TIME DEPOSIT 0.6%
State Street Bank & Trust Corp. ($11,713,118 par, 3.40% coupon, dated
01/31/06, to be sold on 02/01/06 at $11,714,224) (a)....................... 11,713,118
--------------
TOTAL SHORT-TERM INVESTMENTS 1.7%
(Cost $32,713,118)......................................................... 32,713,118
--------------
TOTAL INVESTMENTS 104.9%
(Cost $2,146,453,450)...................................................... 2,058,725,907
BORROWINGS (5.6)%........................................................... (110,000,000)
ASSETS IN EXCESS OF OTHER LIABILITIES 0.7%.................................. 13,789,129
--------------
NET ASSETS 100.0%........................................................... $1,962,515,036
==============
</Table>
NR--Not rated
N/A--Not applicable
+ Bank Loans rated below Baa by Moody's Investor Service, Inc. or BBB by
Standard & Poor's Group are considered to be below investment grade.
Industry percentages are calculated as a percentage of net assets.
(a) All or a portion of this security is segregated in connection with unfunded
loan commitments.
(b) This borrower has filed for protection in federal bankruptcy court.
(c) Affiliated company. See Notes to Financial Statements.
(d) This Senior Loan interest is non-income producing.
(e) This borrower is currently in liquidation.
(f) Payment-in-kind security.
(g) Variable rate security. Interest rate shown is that in effect at January 31,
2006.
(h) Non-income producing security as this stock currently does not declare
dividends.
(i) Restricted security. Securities were acquired through the restructuring of
senior loans. These securities are restricted as they are not allowed to be
deposited via the Depository Trust Company. If at a later point in time, the
company wishes to register, the issuer will bear the costs associated with
registration. The aggregate value of restricted securities represents 1.0%
of the net assets of the Fund.
(j) The borrower is in the process of restructuring or amending the terms of
this loan.
* Senior Loans in the Fund's portfolio generally are subject to mandatory
and/or optional prepayment. Because of these mandatory prepayment conditions
and because there may be significant economic incentives for a Borrower to
prepay, prepayments of Senior Loans in the Fund's portfolio may occur. As a
result, the actual remaining maturity of Senior Loans held in the Fund's
portfolio may be substantially less than the stated maturities shown.
Although the Fund is unable to accurately estimate the actual remaining
maturity of individual Senior Loans, the Fund estimates that the actual
average maturity of the Senior Loans held in its portfolio will be
approximately 18-24 months.
** Senior Loans in which the Fund invests generally pay interest at rates which
are periodically redetermined by reference to a base lending rate plus a
premium. These base lending rates are generally (i) the lending rate offered
by one or more major European banks, such as the London Inter-Bank Offered
Rate ("LIBOR"), (ii) the prime rate offered by one or more major United
States banks or (iii) the certificate of deposit rate. Senior Loans are
generally considered to be restricted in that the Fund ordinarily is
contractually obligated to receive approval from the Agent Bank and/or
Borrower prior to the disposition of a Senior Loan.
28 See Notes to Financial Statements
VAN KAMPEN SENIOR LOAN FUND
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
January 31, 2006 (Unaudited)
<Table>
ASSETS:
Investments in unaffiliated loans/securities (Cost
$2,015,096,331)............................................ $ 2,019,834,739
Investments in affiliated loans/securities (Cost
$131,357,119).............................................. 38,891,168
---------------
Total Investments (Cost $2,146,453,450).................... 2,058,725,907
Cash........................................................ 16,471,396
Receivables:
Investments Sold........................................... 31,608,009
Interest and Fees.......................................... 13,739,057
Fund Shares Sold........................................... 389,726
Other....................................................... 37,961
---------------
Total Assets............................................. 2,120,972,056
---------------
LIABILITIES:
Payables:
Borrowings................................................. 110,000,000
Investments Purchased...................................... 38,726,270
Income Distributions....................................... 1,789,570
Investment Advisory Fee.................................... 1,494,451
Distributor and Other Affiliates........................... 1,009,395
Administrative Fee......................................... 436,778
Fund Shares Repurchased.................................... 1,890
Unfunded Commitments........................................ 2,102,936
Accrued Expenses............................................ 1,605,786
Trustees' Deferred Compensation and Retirement Plans........ 1,182,292
Accrued Interest Expense.................................... 107,652
---------------
Total Liabilities........................................ 158,457,020
---------------
NET ASSETS.................................................. $ 1,962,515,036
===============
NET ASSETS CONSIST OF:
Capital..................................................... $ 3,137,224,486
Accumulated Undistributed Net Investment Income............. 2,191,889
Net Unrealized Depreciation................................. (89,830,479)
Accumulated Net Realized Loss............................... (1,087,070,860)
---------------
NET ASSETS.................................................. $ 1,962,515,036
===============
NET ASSET VALUE AND MAXIMUM OFFERING PRICE PER SHARE:
Class A Shares:
Net asset value per share (Based on net assets of
$70,891,918 and 7,845,515 shares of beneficial interest
issued and outstanding).................................. $ 9.04
Maximum sales charge (3.25%* of offering price).......... 0.30
---------------
Maximum offering price to public......................... 9.34
===============
Class B Shares:
Net asset value and offering price per share (Based on
net assets of $13,594,654 and 1,504,534 shares of
beneficial interest issued and outstanding).............. $ 9.04
===============
Class C Shares:
Net asset value and offering price per share (Based on
net assets of $69,608,990 and 7,704,224 shares of
beneficial interest issued and outstanding).............. $ 9.04
===============
Class IB Shares:
Net asset value and offering price per share (Based on
net assets of $1,449,559,191 and 160,240,721 shares of
beneficial interest issued and outstanding).............. $ 9.05
===============
Class IC Shares:
Net asset value and offering price per share (Based on
net assets of $358,860,283 and 39,682,969 shares of
beneficial interest issued and outstanding).............. $ 9.04
===============
</Table>
* On sales of $100,000 or more, the sales charge will be reduced.
See Notes to Financial Statements 29
VAN KAMPEN SENIOR LOAN FUND
FINANCIAL STATEMENTS continued
Statement of Operations
For the Six Months Ended January 31, 2006 (Unaudited)
<Table>
INVESTMENT INCOME:
Interest from unaffiliated loans/securities................. $ 70,927,887
Interest from affiliated loans/securities................... 1,114,908
Other....................................................... 1,362,254
------------
Total Income............................................ 73,405,049
------------
EXPENSES:
Investment Advisory Fee..................................... 9,178,665
Administrative Fee.......................................... 2,685,939
Shareholder Services........................................ 983,485
Interest Expense............................................ 882,744
Distribution and Service Fees (Attributed to Classes A, B, C
and IC of $85,837, $63,270, $327,894 and $308,521,
respectively)............................................. 785,522
Legal....................................................... 712,982
Custody..................................................... 330,562
Trustees' Fees and Related Expenses......................... 68,456
Other....................................................... 1,361,241
------------
Total Expenses.......................................... 16,989,596
Service Fee Reimbursement............................... 492,149
Less Credits Earned on Cash Balances.................... 43,494
------------
Net Expenses............................................ 16,453,953
------------
NET INVESTMENT INCOME....................................... $ 56,951,096
============
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Loss on unaffiliated loans/securities.......... $ (8,536,839)
Net Realized Gain on affiliated loans/securities............ 11,397,552
------------
2,860,713
------------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... (68,354,134)
------------
End of the Period
Investments............................................. (87,727,543)
Unfunded Commitments.................................... (2,102,936)
------------
(89,830,479)
------------
Net Unrealized Depreciation During the Period............... (21,476,345)
------------
NET REALIZED AND UNREALIZED LOSS............................ $(18,615,632)
============
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $ 38,335,464
============
</Table>
30 See Notes to Financial Statements
VAN KAMPEN SENIOR LOAN FUND
FINANCIAL STATEMENTS continued
Statements of Changes in Net Assets (Unaudited)
<Table>
<Caption>
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
JANUARY 31, 2006 JULY 31, 2005
---------------------------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income.................................... $ 56,951,096 $ 88,510,259
Net Realized Gain/Loss................................... 2,860,713 (15,723,278)
Net Unrealized Appreciation/Depreciation During the
Period................................................. (21,476,345) 32,662,107
-------------- --------------
Change in Net Assets from Operations..................... 38,335,464 105,449,088
-------------- --------------
Distributions from Net Investment Income:
Class A Shares......................................... (1,730,614) (640,250)
Class B Shares......................................... (272,248) (109,825)
Class C Shares......................................... (1,410,472) (511,679)
Class IB Shares........................................ (39,831,598) (64,404,166)
Class IC Shares........................................ (10,305,247) (15,299,318)
-------------- --------------
Total Distributions...................................... (53,550,179) (80,965,238)
-------------- --------------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES...... (15,214,715) 24,483,850
-------------- --------------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold................................ 54,298,657 563,529,321
Net Asset Value of Shares Issued Through Dividend
Reinvestment........................................... 28,338,660 42,159,249
Cost of Shares Repurchased............................... (290,277,913) (479,983,896)
-------------- --------------
NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS....... (207,640,596) 125,704,674
-------------- --------------
TOTAL INCREASE/DECREASE IN NET ASSETS.................... (222,855,311) 150,188,524
NET ASSETS:
Beginning of the Period.................................. 2,185,370,347 2,035,181,823
-------------- --------------
End of the Period (Including accumulated undistributed
net investment income of $2,191,889 and ($1,209,028),
respectively).......................................... $1,962,515,036 $2,185,370,347
============== ==============
</Table>
See Notes to Financial Statements 31
VAN KAMPEN SENIOR LOAN FUND
FINANCIAL STATEMENTS continued
Statement of Cash Flows
For the Six Months Ended January 31, 2006 (Unaudited)
<Table>
CHANGE IN NET ASSETS FROM OPERATIONS........................ $ 38,335,464
-------------
Adjustments to Reconcile the Change in Net Assets from
Operations to Net Cash provided by Operating Activities:
Decrease in Investments at Value.......................... 268,892,692
Increase in Receivable for Investments Sold............... (15,742,622)
Increase in Interest and Fees Receivables................. (2,445,428)
Decrease in Other Assets.................................. 7,892
Decrease in Payable for Investments Purchased............. (472,049)
Decrease in Investment Advisory Fee Payable............... (149,372)
Increase in Distributor and Other Affiliates Payable...... 264,429
Decrease in Administrative Fee Payable.................... (45,265)
Change in Unfunded Commitments............................ 95,538
Increase in Accrued Expenses.............................. 389,981
Increase in Trustees' Deferred Compensation and Retirement
Plans................................................... 52,405
-------------
Total Adjustments....................................... 250,848,201
-------------
NET CASH PROVIDED BY OPERATING ACTIVITIES................... 289,183,665
-------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in Bank Borrowings................................... (13,000,000)
Change in Accrued Interest Expense.......................... (31,713)
Proceeds from Shares Sold................................... 55,629,399
Payments on Shares Repurchased.............................. (290,277,913)
Cash Dividends Paid......................................... (25,033,145)
-------------
Net Cash Used for Financing Activities.................. (272,713,372)
-------------
NET INCREASE IN CASH........................................ 16,470,293
Cash at Beginning of the Period............................. 1,103
-------------
CASH AT THE END OF THE PERIOD............................... $ 16,471,396
=============
</Table>
32 See Notes to Financial Statements
VAN KAMPEN SENIOR LOAN FUND
FINANCIAL HIGHLIGHTS (UNAUDITED)
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE
FUND OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
<Table>
<Caption>
FEBRUARY 18, 2005
(COMMENCEMENT
SIX MONTHS OF INVESTMENT
ENDED OPERATIONS) TO
JANUARY 31, JULY 31,
CLASS A SHARES 2006 2005
-------------------------------
NET ASSET VALUE, BEGINNING OF THE PERIOD.................... $9.10 $9.12
----- -----
Net Investment Income (b)................................. .25 .18
Net Realized and Unrealized Loss.......................... (.08) (.04)
----- -----
Total from Investment Operations............................ .17 .14
Less Distributions from Net Investment Income............... .23 .16
----- -----
NET ASSET VALUE, END OF THE PERIOD.......................... $9.04 $9.10
===== =====
Total Return* (a)........................................... 1.77%** 1.75%**
Net Assets at End of the Period (In millions)............... $70.9 $54.0
Ratio of Expenses to Average Net Assets*.................... 1.51% 1.46%
Ratio of Net Investment Income to Average Net Assets*....... 5.35% 4.44%
Portfolio Turnover (c)...................................... 39%** 90%
* If certain expenses had not been voluntarily assumed by Van Kampen, total return would
have been lower and the ratios would have been as follows:
Ratio of Expenses to Average Net Assets.................. 1.76% 1.71%
Ratio of Net Investment Income to Average Net Assets..... 5.10% 4.19%
</Table>
** Non-Annualized
(a) Assumes reinvestment of all distributions for the period and does not
include payment of the maximum sales charge of 3.25% or early withdrawal
charge. On purchases of $1 million or more, an early withdrawal charge of 1%
may be imposed on certain repurchases by the Fund made within eighteen
months of purchase. If the sales charges were included total returns would
be lower. These returns include combined distribution and services fees of
up to .25% and do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the repurchases by the Fund of Fund
shares.
(b) Based on average shares outstanding.
(c) Calculation includes the proceeds from principal repayments and sales of
variable rate senior loan interests.
See Notes to Financial Statements 33
VAN KAMPEN SENIOR LOAN FUND
FINANCIAL HIGHLIGHTS (UNAUDITED) continued
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE
FUND OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
<Table>
<Caption>
FEBRUARY 18, 2005
(COMMENCEMENT
SIX MONTHS OF INVESTMENT
ENDED OPERATIONS) TO
JANUARY 31, JULY 31,
CLASS B SHARES 2006 2005
-------------------------------
NET ASSET VALUE, BEGINNING OF THE PERIOD.................... $9.10 $9.12
----- -----
Net Investment Income (b)................................. .21 .14
Net Realized and Unrealized Loss.......................... (.08) (.03)
----- -----
Total from Investment Operations............................ .13 .11
Less Distributions from Net Investment Income............... .19 .13
----- -----
NET ASSET VALUE, END OF THE PERIOD.......................... $9.04 $9.10
===== =====
Total Return* (a)........................................... 1.40%** 1.41%**
Net Assets at End of the Period (In millions)............... $13.6 $10.8
Ratio of Expenses to Average Net Assets*.................... 2.26% 2.22%
Ratio of Net Investment Income to Average Net Assets*....... 4.60% 3.73%
Portfolio Turnover (c)...................................... 39%** 90%
* If certain expenses had not been voluntarily assumed by Van Kampen, total return would
have been lower and the ratios would have been as follows:
Ratio of Expenses to Average Net Assets.................. 2.51% 2.47%
Ratio of Net Investment Income to Average Net Assets..... 4.35% 3.48%
</Table>
** Non-Annualized
(a) Assumes reinvestment of all distributions for the period and does not
include payment of the maximum early withdrawal charge of 3%, charged on
certain repurchases by the Fund made within one year of purchase and
declining to 0% after the fifth year. If the sales charge was included,
total return would be lower. This return includes combined distribution and
service fees of up to 1% and does not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the repurchases by the Fund
of Fund shares.
(b) Based on average shares outstanding.
(c) Calculation includes the proceeds from principal repayments and sales of
variable rate senior loan interests.
34 See Notes to Financial Statements
VAN KAMPEN SENIOR LOAN FUND
FINANCIAL HIGHLIGHTS (UNAUDITED) continued
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE
FUND OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
<Table>
<Caption>
FEBRUARY 18, 2005
(COMMENCEMENT
SIX MONTHS OF INVESTMENT
ENDED OPERATIONS) TO
JANUARY 31, JULY 31,
CLASS C SHARES 2006 2005
-------------------------------
NET ASSET VALUE, BEGINNING OF THE PERIOD.................... $9.10 $9.12
----- -----
Net Investment Income (b)................................. .21 .14
Net Realized and Unrealized Loss.......................... (.08) (.03)
----- -----
Total from Investment Operations............................ .13 .11
Less Distributions from of Net Investment Income............ .19 .13
----- -----
NET ASSET VALUE, END OF THE PERIOD.......................... $9.04 $9.10
===== =====
Total Return* (a)........................................... 1.40%** 1.41%**
Net Assets at End of the Period (In millions)............... $69.6 $55.7
Ratio of Expenses to Average Net Assets*.................... 2.26% 2.21%
Ratio of Net Investment Income to Average Net Assets*....... 4.59% 3.66%
Portfolio Turnover (c)...................................... 39%** 90%
* If certain expenses had not been voluntarily assumed by Van Kampen, total return would
have been lower and the ratios would have been as follows:
Ratio of Expenses to Average Net Assets.................. 2.51% 2.46%
Ratio of Net Investment Income to Average Net Assets..... 4.34% 3.41%
</Table>
** Non-Annualized
(a) Assumes reinvestment of all distributions for the period and does not
include payment of the maximum early withdrawal charge of 1%, charged on
certain repurchases by the Fund made within one year of purchase. If the
sales charge was included, total returns would be lower. These returns
include combined distribution and service fees of up to 1% and do not
reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the repurchases by the Fund of Fund shares.
(b) Based on average shares outstanding.
(c) Calculation includes the proceeds from principal repayments and sales of
variable rate senior loan interests.
See Notes to Financial Statements 35
VAN KAMPEN SENIOR LOAN FUND
FINANCIAL HIGHLIGHTS (UNAUDITED) continued
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE
FUND OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED JULY 31,
CLASS IB SHARES JANUARY 31, ----------------------------------------------------
2006 2005 2004 2003 2002 2001
------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF THE
PERIOD......................... $ 9.11 $ 9.00 $ 8.29 $ 8.09 $ 8.61 $ 9.50
-------- -------- -------- -------- -------- --------
Net Investment Income (b)...... .25 .37 .30 .33 .41 .66
Net Realized and Unrealized
Gain/Loss.................... (.08) .08 .68 .19 (.55) (.86)
-------- -------- -------- -------- -------- --------
Total from Investment
Operations..................... .17 .45 .98 .52 (.14) (.20)
-------- -------- -------- -------- -------- --------
Less:
Distributions from Net
Investment Income............ .23 .34 .25 .29 .38 .69
Return of Capital
Distributions................ -0- -0- .02 .03 -0- -0-
-------- -------- -------- -------- -------- --------
Total Distributions.............. .23 .34 .27 .32 .38 .69
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF THE
PERIOD......................... $ 9.05 $ 9.11 $ 9.00 $ 8.29 $ 8.09 $ 8.61
======== ======== ======== ======== ======== ========
Total Return (a)................. 1.77%* 5.18% 12.03% 6.58% -1.61% -2.11%
Net Assets at End of the Period
(In millions).................. $1,449.6 $1,639.0 $1,703.1 $1,876.1 $2,558.7 $3,989.7
Ratio of Expenses to Average Net
Assets......................... 1.51% 1.42% 1.48% 1.54% 1.43% 1.43%
Ratio of Net Investment Income to
Average Net Assets............. 5.33% 4.09% 3.44% 4.21% 4.85% 7.34%
Portfolio Turnover (c)........... 39%* 90% 94% 49% 36% 42%
</Table>
* Non-Annualized
(a) Assumes reinvestment of all distributions for the period and does not
include payment of the maximum early withdrawal charge of 3%, charged on
repurchases by the Fund made within one year of purchase and declining to 0%
after the fifth year. If the sales charge was included, total returns would
be lower. These returns do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or repurchases by the Fund of
Fund shares. The early withdrawal charge was terminated effective February
18, 2005.
(b) Based on average shares outstanding.
(c) Calculation includes the proceeds from principal repayments and sales of
variable rate senior loan interests.
36 See Notes to Financial Statements
VAN KAMPEN SENIOR LOAN FUND
FINANCIAL HIGHLIGHTS (UNAUDITED) continued
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE
FUND OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
<Table>
<Caption>
JUNE 13, 2003
SIX MONTHS YEAR ENDED (COMMENCEMENT
ENDED JULY 31, OF INVESTMENT
CLASS IC SHARES JANUARY 31, ---------------- OPERATIONS) TO
2006 2005 2004 JULY 31, 2003
------------------------------------------------
NET ASSET VALUE, BEGINNING OF THE PERIOD.... $ 9.11 $ 9.00 $ 8.29 $ 8.16
------ ------ ------ ------
Net Investment Income (b)................. .25 .37 .28 .04
Net Realized and Unrealized Gain/Loss..... (.09) .07 .69 .12
------ ------ ------ ------
Total from Investment Operations............ .16 .44 .97 .16
------ ------ ------ ------
Less:
Distributions from Net Investment
Income.................................. .23 .33 .24 .03
Return of Capital Distributions........... -0- -0- .02 -0-
------ ------ ------ ------
Total Distributions......................... .23 .33 .26 .03
------ ------ ------ ------
NET ASSET VALUE, END OF THE PERIOD.......... $ 9.04 $ 9.11 $ 9.00 $ 8.29
====== ====== ====== ======
Total Return* (a)........................... 1.77%** 4.98% 11.86% 2.02%**
Net Assets at End of the Period (In
millions)................................. $358.9 $426.0 $332.0 $246.1
Ratio of Expenses to Average Net Assets..... 1.51%* 1.48%* 1.62% 1.56%
Ratio of Net Investment Income to Average
Net Assets................................ 5.33%* 4.07%* 3.26% 3.89%
Portfolio Turnover (c)...................... 39%** 90% 94% 49%
* If certain expenses had not been voluntarily assumed by Van Kampen, total return would have
been lower and the ratios would have been as follows:
Ratio of Expenses to Average Net
Assets................................. 1.66% 1.56% N/A N/A
Ratio of Net Investment Income to Average
Net Assets............................. 5.18% 3.99% N/A N/A
</Table>
** Non-Annualized
(a) Assumes reinvestment of all distributions for the period and does not
include payment of the maximum early withdrawal charge of 1%, charged on
repurchases by the Fund made within one year of purchase. If the sales
charge was included, total returns would be lower. These returns do not
reflect the deduction of taxes that a shareholder would pay on Fund
distributions or repurchases by the Fund of Fund shares. The early
withdrawal charge was terminated effective February 18, 2005.
(b) Based on average shares outstanding.
(c) Calculation includes the proceeds from principal repayments and sales of
variable rate senior loan interests.
N/A=Not Applicable
See Notes to Financial Statements 37
VAN KAMPEN SENIOR LOAN FUND
NOTES TO FINANCIAL STATEMENTS -- JANUARY 31, 2006 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen Senior Loan Fund (the "Fund") is registered as a non-diversified,
closed-end management investment company under the Investment Company Act of
1940 (the "1940 Act"), as amended. The Fund's investment objective is to provide
a high level of current income, consistent with preservation of capital. The
Fund invests primarily in adjustable rate Senior Loans. Senior Loans are
business loans that have a senior right to payment and are made to borrowers
that may be corporations, partnerships, or other entities. These borrowers
operate in a variety of industries and geographic regions. The Fund commenced
investment operations on October 4, 1989. The Fund continuously offers Class A
Shares, Class B Shares and Class C Shares. Class IB Shares and Class IC Shares
are not continuously offered. Each class of shares differs by its initial sales
load, contingent deferred sales charges, the allocation of class-specific
expenses and voting rights on matters affecting a single class.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
preparation of financial statements in conformity with 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 The Fund's Senior Loans are valued by the Fund following
valuation guidelines established and periodically reviewed by the Fund's Board
of Trustees. Under the valuation guidelines, Senior Loans for which reliable
market quotes are readily available are valued at the mean of such bid and ask
quotes. Where reliable market quotes are not readily available, Senior Loans are
valued, where possible, using independent market indicators provided by
independent pricing sources approved by the Board of Trustees. Other Senior
Loans are valued by independent pricing sources approved by the Board of
Trustees based upon pricing models developed, maintained and operated by those
pricing sources or valued by Van Kampen Asset Management (the "Adviser") by
considering a number of factors including consideration of market indicators,
transactions in instruments which the Adviser believes may be comparable
(including comparable credit quality, interest rate redetermination period and
maturity), the credit worthiness of the Borrower, the current interest rate, the
period until the next interest rate redetermination and the maturity of such
Senior Loans. Consideration of comparable instruments may include commercial
paper, negotiable certificates of deposit and short-term variable rate
securities which have adjustment periods comparable to the Senior Loans in the
Fund's portfolio. The fair value of Senior Loans are reviewed and approved by
the Fund's Valuation Committee and Board of Trustees.
Equity securities are valued on the basis of prices furnished by pricing
services or at fair value as determined in good faith by the Adviser under the
direction of the Board of Trustees.
Short-term securities with remaining maturities of 60 days or less are
valued at amortized cost, which approximates market value. Short-term loan
participations are valued at cost in the absence of any indication of
impairment. The Fund may invest in repurchase agreements, which are short-term
investments in which the Fund acquires ownership of a
38
VAN KAMPEN SENIOR LOAN FUND
NOTES TO FINANCIAL STATEMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
debt security and the seller agrees to repurchase the security at a future time
and specified price. Repurchase agreements are fully collateralized by the
underlying debt security. The Fund will make payment for such securities only
upon physical delivery or evidence of book entry transfer to the account of the
custodian bank. The seller is required to maintain the value of the underlying
security at not less than the repurchase proceeds due the Fund.
B. SECURITY TRANSACTIONS Investment transactions are recorded on a trade date
basis. Realized gains and losses are determined on an identified cost basis.
Legal expenditures that are expected to result in the restructuring of or a plan
of reorganization for an investment are recorded as realized losses.
C. INVESTMENT INCOME Dividend income is recorded on the ex-dividend date and
interest income is recorded on an accrual basis. Facility fees on senior loans
purchased are treated as market discounts. Market premiums are amortized and
discounts are accreted over the stated life of each applicable senior loan, note
or other fixed-income security.
Other income is comprised primarily of amendment fees which are recorded
when received. Amendment fees are earned as compensation for agreeing to changes
in loan agreements. Income, expenses and realized and unrealized gains or losses
are allocated on a pro-rata basis to each class of shares except for
distribution and service fees, which are unique to each class of shares.
D. FEDERAL INCOME TAXES It is the Fund's policy to comply with the requirements
of Subchapter M of the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all of its taxable income to its
shareholders. Therefore, no provision for federal income taxes is required.
The Fund intends to utilize provisions of the federal income tax laws which
allow it to carry a realized capital loss forward for eight years following the
year of the loss and offset such losses against any future realized capital
gains. At July 31, 2005, the Fund had an accumulated capital loss carryforward
for tax purposes of $1,027,665,325, which will expire according to the following
schedule.
<Table>
<Caption>
AMOUNT EXPIRATION
$ 230,325................................................ July 31, 2006
25,341,287................................................ July 31, 2007
28,927,103................................................ July 31, 2008
90,868,001................................................ July 31, 2009
445,144,583................................................ July 31, 2010
215,755,020................................................ July 31, 2011
153,257,861................................................ July 31, 2012
68,141,145................................................ July 31, 2013
</Table>
39
VAN KAMPEN SENIOR LOAN FUND
NOTES TO FINANCIAL STATEMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
At January 31, 2006, the cost and related gross unrealized appreciation and
depreciation are as follows:
<Table>
Cost of investments for tax purposes........................ $2,173,593,836
==============
Gross tax unrealized appreciation........................... 16,153,891
Gross tax unrealized depreciation........................... (131,021,820)
--------------
Net tax unrealized depreciation on investments.............. $ (114,867,929)
==============
</Table>
E. DISTRIBUTION OF INCOME AND GAINS The Fund declares daily and pays monthly
dividends from net investment income. Net realized gains, if any, are
distributed at least annually. Distributions from net realized gains for book
purposes may include short-term capital gains, which are included as ordinary
income for tax purposes.
The tax character of distributions paid during the year ended July 31, 2005
was as follows:
<Table>
Distributions paid from:
Ordinary income........................................... $80,556,679
Long-term capital gain.................................... -0-
-----------
$80,556,679
===========
</Table>
As of July 31, 2005, the component of distributable earnings on a tax basis
was as follows:
<Table>
Undistributed ordinary income............................... $2,022,532
</Table>
Net realized gains or losses may differ for financial and tax reporting
purposes primarily as a result of the deferral of losses related to wash sale
transactions and losses that were recognized for book purposes but not for tax
purposes at the end of the fiscal year.
F. CREDITS EARNED ON CASH BALANCES During the six months ended January 31, 2006,
the Fund's custody fee was reduced by $43,494 as a result of credits earned on
cash balances.
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of the Fund's Investment Advisory Agreement, the Adviser will
provide investment advice and facilities to the Fund for an annual fee payable
monthly as follows:
<Table>
<Caption>
AVERAGE DAILY NET ASSETS % PER ANNUM
First $500 million.......................................... .900%
Next $1.0 billion........................................... .850%
Next $1.0 billion........................................... .825%
Next $500 million........................................... .800%
Over $3.0 billion........................................... .775%
</Table>
In addition, the Fund will pay a monthly administrative fee to Van Kampen
Funds Inc., the Fund's Administrator, at an annual rate of .25% of the average
daily net assets of the Fund. The administrative services provided by the
Administrator include monitoring the
40
VAN KAMPEN SENIOR LOAN FUND
NOTES TO FINANCIAL STATEMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
provisions of the loan agreements and any agreements with respect to
participations and assignments, record keeping responsibilities with respect to
interests in Senior Loans in the Fund's portfolio and providing certain services
to the holders of the Fund's securities.
For the six months ended January 31, 2006, the Fund recognized expenses of
approximately $433,400 representing legal services provided by Skadden, Arps,
Slate, Meagher & Flom LLP, counsel to the Fund, of which a Trustee of the Fund
is a partner of such firm and he and his law firm provide legal services as
legal counsel to the Fund.
Under separate Legal Services, and Chief Compliance Officer ("CCO")
Employment agreements, the Adviser provides legal services and the CCO provides
compliance services to the Fund. The costs of these services are allocated to
each fund. For the six months ended January 31, 2006, the Fund recognized
expenses of approximately $229,700, representing Van Kampen Investment Inc.'s or
its affiliates' (collectively "Van Kampen") cost of providing legal services to
the Fund, as well as, the salary, benefits and related costs of the CCO and
related support staff paid by Van Kampen. Services provided pursuant to the
Legal Services agreement are reported as part of "Legal" expenses on the
Statement of Operations. Services provided pursuant to the CCO Employment
agreement are reported as part of "Other" expenses on the Statement of
Operations.
Van Kampen Investor Services Inc. (VKIS), an affiliate of the Adviser,
serves as the shareholder servicing agent of the Fund. For the six months ended
January 31, 2006, the Fund recognized expenses for these services of
approximately $784,100 representing transfer agency fees paid to VKIS. Transfer
agency fees are determined through negotiations with the Fund's Board of
Trustees.
Certain officers and Trustees of the Fund are also officers and directors of
Van Kampen. The Fund does not compensate its officers or Trustees who are also
officers of Van Kampen.
The Fund provides deferred compensation and retirement plans for its
Trustees who are not officers of Van Kampen. Under the deferred compensation
plan, Trustees may elect to defer all or a portion of their compensation 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 Fund.
The maximum annual benefit per Trustee under the plan is $2,500.
At January 31, 2006, Van Kampen owned 106 shares of Class A and 110 shares
of Class C.
For the six months ended January 31, 2006, Van Kampen, as Distributor for
the Fund, received commissions on sales of the Fund's Class A Shares of
approximately $26,200 and CDSC on redeemed shares of approximately $65,700.
Sales charges do not represent expenses of the Fund.
41
VAN KAMPEN SENIOR LOAN FUND
NOTES TO FINANCIAL STATEMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
During the period, the Fund owned shares of the following affiliated
companies. Affiliated companies are defined by the Investment Company Act of
1940, as amended, as those companies in which a Fund holds 5% or more of the
outstanding voting securities.
<Table>
<Caption>
INTEREST/
PAR/ DIVIDEND MARKET VALUE
NAME SHARES* INCOME 1/31/06 COST
DecorateToday.com-Common Shares.... 198,600 $ 0 $ 1,958,196 $ 3,505,909
Imperial Home Decor Group, Inc.--
Term Loan........................ $ 4,893,497 0 122,337 4,870,481
Imperial Home Decor Group, Inc.--
Common Shares.................... 1,816,143 0 0 1,852,465
London Fog Industries, Inc.--
Common Shares.................... 515,922 0 0 33,576,536
Neoplan USA Corp.--Revolver........ $ 933,750 39,205 933,750 933,750
Neoplan USA Corp.--Common Shares... 8,517 0 0 85
Neoplan USA Corp.--Preferred
Shares........................... 2,262 0 0 1,074,522
Orius Corp.-- Term Loan............ $ 6,579,313 264,602 1,671,112 3,949,081
Orius Corp.--Revolver.............. $ 2,376,804 129,550 2,127,239 2,376,804
Orius Corp.--Common Shares......... 1,211,236 0 0 0
Safelite Glass Corp.--Term Loan.... $14,994,316 681,551 14,844,373 14,994,316
Safelite Glass Corp.--Common
Shares........................... 724,479 0 0 3,912,187
Safelite Reality-Common Shares..... 48,903 0 0 0
Transworld Entertainment Corp.--
Common Shares.................... 3,288,962 0 17,234,161 60,310,983
---------- ------------ ------------
$1,114,908 $38,891,168 $131,357,119
========== ============ ============
</Table>
* Shares were acquired through the restructuring of senior loan interests.
Affiliate transactions during the six months ended January 31, 2006, were as
follows:
<Table>
<Caption>
PAR/SHARES PAR/SHARES REALIZED
AS OF GROSS GROSS AS OF GAIN/
NAME 7/31/05 ADDITIONS REDUCTIONS 1/31/06 (LOSS)
Chart Industries, Term
Loan................. $ 5,285,257 $3,400,000 $(5,379,701) $ 3,305,556 $ (806,448)
Chart Industries,
Common Shares........ 280,454 0 (280,454) 0 12,200,819
Orius Corp., Term
Loan................. $ 6,481,269 $ 98,044 0 $ 6,579,313 0
Orius Corp., LLC,
Revolver............. $ 4,330,904 0 $(1,954,100) $ 2,376,804 0
Safelite Glass Corp.,
Term Loan............ $16,441,720 0 $(1,447,404) $14,994,316 3,181
-----------
$11,397,552
===========
</Table>
42
VAN KAMPEN SENIOR LOAN FUND
NOTES TO FINANCIAL STATEMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
3. CAPITAL TRANSACTIONS
For the six months ended January 31, 2006 and the year ended July 31, 2005,
transactions were as follows:
<Table>
<Caption>
FOR THE FOR THE
SIX MONTH ENDED YEAR ENDED
JANUARY 31, 2006 JULY 31, 2005
---------------------------- ----------------------------
SHARES VALUE SHARES VALUE
Sales:
Class A........................ 3,015,148 $ 27,336,720 6,457,801 $ 58,942,482
Class B........................ 446,347 4,044,829 1,272,717 11,617,443
Class C........................ 2,064,035 18,713,383 6,219,523 56,760,288
Class IB....................... 257,348 2,333,848 29,709,650 270,363,646
Class IC....................... 206,381 1,869,877 18,287,687 165,845,462
----------- ------------- ----------- -------------
Total Sales...................... 5,989,259 $ 54,298,657 61,947,378 $ 563,529,321
=========== ============= =========== =============
Dividend Reinvestment:
Class A........................ 106,097 $ 960,624 39,840 $ 362,784
Class B........................ 18,649 168,842 6,754 61,502
Class C........................ 75,755 685,871 26,118 237,778
Class IB....................... 2,413,529 21,880,468 3,810,505 34,609,287
Class IC....................... 512,457 4,642,855 757,994 6,887,898
----------- ------------- ----------- -------------
Total Dividend Reinvestment...... 3,126,487 $ 28,338,660 4,641,211 $ 42,159,249
=========== ============= =========== =============
Repurchases:
Class A........................ (1,205,406) $ (10,892,920) (567,965) $ (5,178,140)
Class B........................ (143,125) (1,294,218) (96,808) (883,120)
Class C........................ (554,546) (5,011,098) (126,661) (1,154,058)
Class IB....................... (22,345,297) (202,377,769) (42,836,274) (389,295,735)
Class C........................ (7,813,842) (70,701,908) (9,172,693) (83,472,844)
----------- ------------- ----------- -------------
Total Repurchases................ (32,062,216) $(290,277,913) (52,800,401) $(479,983,896)
=========== ============= =========== =============
</Table>
4. INVESTMENT TRANSACTIONS
During the period, the costs of purchases and proceeds from investments sold and
repaid, excluding short-term investments, were $830,178,231 and $1,390,498,789,
respectively.
5. REPURCHASE OF SHARES
The Fund has adopted the following fundamental policies in relation to its
repurchase offers, which cannot be changed without the approval of the holders
of a majority of the Fund's outstanding shares: the Fund has a policy of making
periodic repurchase offers ("Repurchase Offers") for the Fund's common shares
pursuant to Rule 23c-3(b) of the Investment Company Act of 1940, as amended (the
"1940 Act"); Repurchase Offers will be made at periodic intervals of, initially,
quarterly (the "Periodic Interval"); provided, that the Periodic Interval shall
become one month without any additional action by the Board of Trustees, and
without the requirement of a shareholder vote, upon the Securities and Exchange
Commission granting exemptive relief to the Fund from the provisions of Rule
23c-3 of the 1940 Act; the repurchase request deadline will be the third Friday
of each month (or the
43
VAN KAMPEN SENIOR LOAN FUND
NOTES TO FINANCIAL STATEMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
preceding business day if such third Friday is not a business day) in which a
Repurchase Offer ends (the "Request Deadline"); and the repurchase pricing date
for a Repurchase Offer shall occur no later than the fourteenth calendar day
after such Repurchase Offer's Request Deadline (or the next business day after
such fourteenth calendar day if the fourteenth calendar day is not a business
day). So long as the Periodic Interval is quarterly, the Fund's Repurchase
Offers will end in the months of January, April, July and October.
During the six months ended January 31, 2006, the Fund made two Repurchase
offers pursuant to Rule 23c-3(b) as follows: During the Repurchase Offer period
ended October 21, 2005 (the Request Deadline), the Fund offered to repurchase up
to 15% of the aggregate of its outstanding shares and the total amount tendered
in such Repurchase Offer amounted to 16,604,499 shares or 6.8% of the Fund's
outstanding shares. During the Repurchase Offer period ended January 20, 2006
(the Request Deadline), the Fund offered to repurchase up to 15% of the
aggregate of its outstanding shares and the total amount tendered in such
Repurchase Offer amounted to 15,457,717 shares or 6.7% of the Fund's outstanding
shares.
6. COMMITMENTS/BORROWINGS
Pursuant to the terms of certain of the Senior Loan agreements, the Fund had
unfunded loan commitments of approximately $131,904,100 as of January 31, 2006.
The Fund intends to reserve against such contingent obligations by designating
cash, liquid securities, and liquid senior loans as a reserve. The unrealized
depreciation on these commitments of $2,102,936 as of January 31, 2006 is
reported as "Unfunded Commitments" on the Statement of Assets and Liabilities.
The Fund has entered into a revolving credit agreement for an aggregate of
$300,000,000, which will terminate on November 9, 2006. The proceeds of any
borrowing by the Fund under the revolving credit agreement shall be used for
temporary liquidity purposes and funding of shareholder repurchases. Annual
commitment fees of .13% are charged on the unused portion of the credit line.
For the six months ended January 31, 2006, the Fund recognized commitment fee
expenses of approximately $366,900.
Borrowings under this facility will bear interest at the Eurodollar rate
plus 1.00%. For the six months ended January 31, 2006, when in use, the average
daily balance of borrowings under the revolving credit agreement was $96,035,714
with a weighted average interest rate of 3.94%.
7. SENIOR LOAN PARTICIPATION COMMITMENTS
The Fund invests primarily in participations, assignments, or acts as a party to
the primary lending syndicate of a Senior Loan interest to corporations,
partnerships, and other entities. When the Fund purchases a participation of a
Senior Loan interest, the Fund typically enters into a contractual agreement
with the lender or other third party selling the participation, but not with the
borrower directly. As such, the Fund assumes the credit risk of the borrower,
selling participant or other persons interpositioned between the Fund and the
borrower.
44
VAN KAMPEN SENIOR LOAN FUND
NOTES TO FINANCIAL STATEMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
At January 31, 2006, the following sets forth the selling participants with
respect to interests in Senior Loans purchased by the Fund on a participation
basis.
<Table>
<Caption>
PRINCIPAL
AMOUNT VALUE
(000) (000)
SELLING PARTICIPANT
General Electric............................................ $11,200 $11,239
======= =======
</Table>
8. DISTRIBUTION AND SERVICE PLAN
Shares of the Fund are distributed by Van Kampen Funds, Inc. ("the
Distributor"), an affiliate of the Adviser. The Fund has adopted a distribution
plan (the "Distribution Plan") with respect to each of its Class A Shares, Class
B Shares and Class C Shares and in so doing has agreed to comply with rule 12b-1
under the Investment Company Act of 1940, as amended (the "1940 Act"), as if the
Fund were an open-end investment company. The Fund also has adopted a service
plan (the "Service Plan") with respect to each of its Class A Shares, Class B
Shares, Class C Shares and Class IC Shares. There is no Distribution Plan or
Service Plan for the Class IB Shares and no Distribution Plan for the Class IC
Shares. All service fees under the Service Plan applicable to Class A Shares,
Class B Shares, Class C Shares and Class IC Shares are currently being waived.
For the six months ended January 31, 2006, the Distributor waived service fees
of $492,149. This waiver is voluntary in nature and can be discontinued at any
time. Under the Distribution Plan and Service Plan, the Fund pays distribution
fees in connection with the sale and distribution of its Shares and service fees
in connection with the provision of ongoing services to shareholders of each
such class and the maintenance of shareholder accounts.
Under the Distribution Plan and Service Plan, the Fund incurs up to a total
of 0.25%, 1.00%, 1.00%, and 0.15% (0.25% maximum) per year of the average daily
net assets of Class A Shares, Class B Shares, Class C Shares, and Class IC
Shares, respectively. Due to voluntary fee waivers by the Distributor, the
aggregate distribution and service fees are currently 0.00%, 0.75%, 0.75%, and
0.00% per year of the average daily net assets for Class A Shares, Class B
Shares, Class C Shares, and Class IC Shares, respectively. Annual fees under the
Distribution Plan and Service Plan are accrued daily. The net annual fees for
Class B Shares and Class C Shares are paid monthly to the Distributor. The
amount of distribution expenses incurred by the Distributor and not yet
reimbursed ("unreimbursed receivable") was approximately $231,200 and $351,000
for Class B Shares and Class C Shares, respectively. This amount may be
recovered from future payments under the distribution plan. To the extent the
unreimbursed receivable has been fully recovered, any excess fees will be
refunded to the Fund on a quarterly basis.
9. LITIGATION
On September 28, 2001 and October 11, 2001, separate complaints were filed in
the United States District Court for the Northern District of Illinois each by a
shareholder of the Fund against the Fund, the Adviser, Van Kampen Funds Inc. and
certain directors and officers of the Fund. The respective complaints, framed as
class actions, allege misstatements and omissions in the Fund's registration
statements in violation of the federal securities laws. The separate complaints
were consolidated on or about December 15, 2001, and the class was
45
VAN KAMPEN SENIOR LOAN FUND
NOTES TO FINANCIAL STATEMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
certified on or about August 26, 2002. The consolidated action is entitled
Abrams et al. v. Van Kampen Funds, Inc., et al., No. 01 C 7538 (N.D. Ill., Hart
J.). On June 3, 2005, the Court preliminarily approved a pretrial settlement of
this class action in the amount of $31,500,000. A fairness hearing on the
settlement was scheduled for November 16, 2005. Under the terms of the proposed
settlement, the Fund will not be responsible for the settlement amount. On
January 20, 2006, the Court approved a settlement and the cause of action was
dismissed with prejudice.
10. INDEMNIFICATIONS
The Fund enters into contracts that contain a variety of indemnifications. The
Fund's maximum exposure under these arrangements is unknown. However, the Fund
has not had prior claims or losses pursuant to these contracts and expects the
risk of loss to be remote.
46
VAN KAMPEN SENIOR LOAN FUND
BOARD OF TRUSTEES, OFFICERS AND IMPORTANT ADDRESSES
BOARD OF TRUSTEES
DAVID C. ARCH
ROD DAMMEYER
HOWARD J KERR
HUGO F. SONNENSCHEIN
WAYNE W. WHALEN* - Chairman
OFFICERS
RONALD E. ROBISON
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
PHILLIP G. GOFF
Chief Financial Officer and Treasurer
HOWARD TIFFEN
Vice President
INVESTMENT ADVISER
VAN KAMPEN ASSET MANAGEMENT
1221 Avenue of the Americas
New York, New York 10020
DISTRIBUTOR
VAN KAMPEN FUNDS INC.
1221 Avenue of the Americas
New York, New York 10020
SHAREHOLDER SERVICING AGENT
VAN KAMPEN INVESTOR SERVICES INC.
P.O. Box 947
Jersey City, New Jersey 07303-0947
CUSTODIAN
STATE STREET BANK
AND TRUST COMPANY
225 Franklin Street
P.O. Box 1713
Boston, Massachusetts 02110
LEGAL COUNSEL
SKADDEN, ARPS, SLATE,
MEAGHER & FLOM LLP
333 West Wacker Drive
Chicago, Illinois 60606
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
DELOITTE & TOUCHE LLP
111 South Wacker Drive
Chicago, Illinois 60601-4301
* "Interested persons" of the Fund, as defined in the Investment Company Act
of 1940, as amended.
47
Van Kampen Senior Loan Fund
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.
(continued on next page)
Van Kampen Senior Loan Fund
An Important Notice Concerning Our U.S. Privacy Policy continued
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, 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
(continued on back)
Van Kampen Senior Loan Fund
An Important Notice Concerning Our U.S. Privacy Policy continued
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)2006 Van Kampen Funds Inc. All rights reserved.
Member NASD/SIPC.
59, 359
SLF SAR 3/06
(VAN KAMPEN INVESTMENTS SHINE LOGO) RA06-00209P-Y01/06
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 for semi-annual reports.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable for semi-annual reports.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. Controls and Procedures
(a) The Fund's principal executive officer and principal financial officer have
concluded that the Fund's disclosure controls and procedures are sufficient to
ensure that information required to be disclosed by the Fund in this Form N-CSRS
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 second fiscal quarter of the period covered
by this report that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting.
Item 12. Exhibits.
(1) Code of Ethics - Not applicable for semi-annual reports.
(2)(a) A certification for the Principal Executive Officer of the registrant is
attached hereto as part of EX-99.CERT.
(2)(b) 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 Senior Loan Fund
By: /s/ Ronald E. Robison
-------------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: March 23, 2006
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: March 23, 2006
By: /s/ Phillip G. Goff
-------------------------
Name: Phillip G. Goff
Title: Principal Financial Officer
Date: March 23, 2006