UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-6538
Van Kampen Trust For Investment Grade Florida Municipals
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
1221 Avenue of the Americas, New York, New York 10020
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Ronald Robison
1221 Avenue of the Americas, New York, New York 10020
- --------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: 212-762-4000
Date of fiscal year end: 10/31
Date of reporting period: 4/30/06
Item 1. Report to Shareholders.
The Trust's semi-annual report transmitted to shareholders pursuant to
Rule 30e-1 under the Investment Company Act of 1940 is as follows:
Welcome, Shareholder
In this report, you'll learn about how your investment in Van Kampen
Trust for Investment Grade Florida Municipals performed during the
semiannual period. The portfolio management team will provide an overview
of the market conditions and discuss some of the factors that affected
investment performance during the reporting period. In addition, this
report includes the trust's financial statements and a list of trust
investments as of April 30, 2006.
MARKET FORECASTS PROVIDED IN THIS REPORT MAY NOT NECESSARILY COME TO
PASS. THERE IS NO ASSURANCE THAT THE TRUST WILL ACHIEVE ITS INVESTMENT
OBJECTIVE. TRUSTS ARE SUBJECT TO MARKET RISK, WHICH IS THE POSSIBILITY
THAT THE MARKET VALUES OF SECURITIES OWNED BY THE TRUST WILL DECLINE AND
THAT THE VALUE OF TRUST SHARES MAY THEREFORE BE LESS THAN WHAT YOU PAID
FOR THEM. ACCORDINGLY, YOU CAN LOSE MONEY INVESTING IN THIS TRUST.
INCOME MAY SUBJECT CERTAIN INDIVIDUALS TO THE FEDERAL ALTERNATIVE MINIMUM
TAX (AMT).
<Table>
<Caption>
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NOT FDIC INSURED OFFER NO BANK GUARANTEE MAY LOSE VALUE
---------------------------------------------------------------------------------------
NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY NOT A DEPOSIT
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</Table>
Performance Summary as of 4/30/06
<Table>
<Caption>
TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
SYMBOL: VTF
- ------------------------------------------------------------
AVERAGE ANNUAL BASED ON BASED ON
TOTAL RETURNS NAV MARKET PRICE
Since Inception (3/27/92) 7.70% 6.69%
10-year 6.93 6.07
5-year 7.47 8.21
1-year 1.99 5.29
6-month 1.90 5.19
- ------------------------------------------------------------
</Table>
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NO GUARANTEE OF
FUTURE RESULTS, AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE FIGURES
SHOWN. FOR THE MOST RECENT MONTH-END PERFORMANCE FIGURES, PLEASE VISIT
VANKAMPEN.COM OR SPEAK WITH YOUR FINANCIAL ADVISOR. INVESTMENT RETURNS, NET
ASSET VALUE (NAV) AND COMMON SHARE MARKET PRICE WILL FLUCTUATE AND TRUST SHARES,
WHEN SOLD, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
NAV per share is determined by dividing the value of the trust's portfolio
securities, cash and other assets, less all liabilities and preferred shares, by
the total number of common shares outstanding. The common share market price is
the price the market is willing to pay for shares of the trust at a given time.
Common share market price is influenced by a range of factors, including supply
and demand and market conditions. Total return assumes an investment at the
beginning of the period, reinvestment of all distributions for the period in
accordance with the trust's dividend reinvestment plan, and sale of all shares
at the end of the period.
The Lehman Brothers Florida Municipal Bond Index is a broad-based statistical
composite of Florida municipal bonds. The index does not include any expenses,
fees or sales charges, which would lower performance. The index is unmanaged and
should not be considered an investment. It is not possible to invest directly in
an index.
1
Trust Report
FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2006
MARKET CONDITIONS
The economy continued to grow during the six-month period ended April 30, 2006,
demonstrating some resiliency in the face of rising oil and other commodity
prices, the Gulf Coast hurricanes, and emerging weakness in the housing market.
This expansion was more modest in the final months of 2005, but gained
considerable momentum in the first quarter.
Against the backdrop of growth and good employment data, the Federal Open Market
Committee (the "Fed") continued raising the federal funds target rate during the
period, implementing four additional increases of 25 basis points each. These
moves brought the target rate to 4.75 percent. The final hike of the period
represented the fifteenth consecutive increase--the longest stretch of increases
in 25 years. As the period came to a close, market observers speculated about
the Fed's near-term intentions, given the central bank's view that although
longer-term inflation currently appeared contained, commodity prices could
amplify inflationary pressures.
Returns across the municipal bond market varied significantly. As investors
sought income opportunities, lower rated bonds outpaced investment-grade bonds
by a wide margin. Long-term bonds earned the best returns, broadly speaking,
while bonds in the three-to-seven year range posted the most muted gains.
Municipal bond issuance was robust during the final months of 2005. (In fact,
2005 marked a record high for municipal bond volume.) The tide changed in 2006,
however. As rising rates discouraged issuers from refinancing debt, national
municipal issuance dropped by approximately 25 percent in the first four months
of the year versus the same period in 2005. While supply ebbed, the market's
appetite for municipal bonds remained strong, with particularly heavy demand for
high yield municipal bond funds.
Population and employment growth have spurred continued economic expansion in
the State of Florida. A strong real estate market and tourism activity, as well
as robust consumer and business spending, have contributed notably to Florida's
revenue growth. Moreover, the state has benefited from prudent fiscal management
and positive financial performance; sizable reserves currently fill the state's
coffers. Despite these positive factors, Florida does face some challenges. The
expanding population has resulted in increased demand for public services; and
the state's debt burden has grown.
2
PERFORMANCE ANALYSIS
The trust's return can be calculated based upon either the market price or the
net asset value (NAV) of its shares. NAV per share is determined by dividing the
value of the trust's portfolio securities, cash and other assets, less all
liabilities and preferred shares, by the total number of common shares
outstanding, while market price reflects the supply and demand for the shares.
As a result, the two returns can differ, as they did during the reporting
period. On both an NAV basis and a market price basis, the trust outperformed
its benchmark index, the Lehman Brothers Florida Municipal Bond Index.
TOTAL RETURNS FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2006
<Table>
<Caption>
- -------------------------------------------------------------
BASED ON BASED ON LEHMAN BROTHERS FLORIDA
NAV MARKET PRICE MUNICIPAL BOND INDEX
1.90% 5.19% 1.70%
- -------------------------------------------------------------
</Table>
Performance data quoted represents past performance, which is no guarantee of
future results, and current performance may be lower or higher than the figures
shown. Investment return, net asset value and common share market price will
fluctuate and trust shares, when sold, may be worth more or less than their
original cost. See Performance Summary for additional performance information
and index definition.
The trust uses leverage to enhance its dividend to common shareholders. The
trust borrows money at short-term rates through the issuance of preferred
shares. The proceeds are reinvested in longer-term securities, taking advantage
of the difference between short- and longer-term rates. The Fed's policy of
raising interest rates throughout the period made the trust's borrowing activity
more expensive, which reduced the benefits of the trust's leverage activities.
We managed the trust according to our well-established "relative value"
discipline. We used rigorous fundamental research to seek high quality
securities that we believe had good liquidity and total return potential.
(Liquid securities are those for which there is a robust market of purchasers
and sellers.) We purchased bonds we believed to be attractively valued, and held
them until they reached our return targets or until we found bonds that offered
more compelling prospects.
Throughout the period, we sought opportunities to enhance the trust's yield,
while adhering to our quality-driven criteria. We pared exposure to AAA rated
securities, and increased the trust's allocation to relatively higher yielding
tiers of the investment-grade market. These purchases included BBB rated tobacco
revenue bonds. Here, our confidence was underpinned by the strong fundamentals
of the tobacco industry as well as by an improving litigation climate for
tobacco companies. Hospital bonds with A ratings were also represented in our
purchases.
We structured the portfolio to reflect our opinion that interest rates would
continue to rise, with short-term rates rising more rapidly than long-term
rates.
3
To mitigate the trust's sensitivity to changing interest rates, we positioned
the trust's duration to be shorter than its benchmark's. (Duration is a measure
of interest rate sensitivity.) Reflecting our belief that the long-term segment
of the bond market would offer the strongest performance, our purchases
emphasized issues with maturities of 25 years and longer. Meanwhile, we sold
short-term pre-refunded issues, generally with maturities of five years and
less. We also found opportunities for relative value trading within the
long-term portion of the portfolio.
The trust remained well represented across the major sectors of the municipal
bond market, with a bias toward essential services. As of the close of the
reporting period, the trust's largest allocations were to the public education,
hospital and water and sewer sectors. Bonds rated AA or above represented more
than 79 percent of assets.
VTF's procedure for reinvesting all dividends and distributions in common shares
is through purchases in the open market. This method helps support the market
value of the Trust's shares. In addition, we would like to remind you that the
Trustees have approved a procedure whereby the Trust may, when appropriate,
purchase shares in the open market or in privately negotiated transactions at a
price not above market value or net asset value, whichever is lower at the time
of purchase.
There is no guarantee that any sectors mentioned will continue to perform as
discussed herein or that securities in such sectors will be held by the trust in
the future.
4
<Table>
<Caption>
RATINGS ALLOCATION AS OF 4/30/06
AAA/Aaa 72.9%
AA/Aa 6.4
A/A 14.3
BBB/Baa 6.1
Non-Rated 0.3
<Caption>
TOP FIVE SECTORS AS OF 4/30/06
Public Education 16.7%
Hospital 14.3
Water & Sewer 13.8
General Purpose 9.3
Higher Education 6.7
</Table>
Subject to change daily. Provided for informational purposes only and should not
be deemed as a recommendation to buy or sell the securities mentioned or
securities in the sectors shown above. Ratings are as a percentage of total
investments. Sectors are as a percentage of long-term investments. Securities
are classified by sectors that represent broad groupings of related industries.
Van Kampen is a wholly owned subsidiary of a global securities firm which is
engaged in a wide range of financial services including, for example, securities
trading and brokerage activities, investment banking, research and analysis,
financing and financial advisory services. Rating allocations based upon ratings
as issued by Standard and Poor's and Moody's, respectively.
5
FOR MORE INFORMATION ABOUT PORTFOLIO HOLDINGS
Each Van Kampen trust provides a complete schedule of portfolio holdings
in its semiannual and annual reports within 60 days of the end of the
trust's second and fourth fiscal quarters. The semiannual reports and the
annual reports are filed electronically with the Securities and Exchange
Commission (SEC) on Form N-CSRS and Form N-CSR, respectively. Van Kampen
also delivers the semiannual and annual reports to trust shareholders,
and makes these reports available on its public Web site,
www.vankampen.com. In addition to the semiannual and annual reports that
Van Kampen delivers to shareholders and makes available through the Van
Kampen public Web site, each trust files a complete schedule of portfolio
holdings with the SEC for the trust's first and third fiscal quarters on
Form N-Q. Van Kampen does not deliver the reports for the first and third
fiscal quarters to shareholders, nor are the reports posted to the Van
Kampen public Web site. You may, however, obtain the Form N-Q filings (as
well as the Form N-CSR and N-CSRS filings) by accessing the SEC's Web
site, http://www.sec.gov. You may also review and copy them at the SEC's
Public Reference Room in Washington, DC. Information on the operation of
the SEC's Public Reference Room may be obtained by calling the SEC at
(800) SEC-0330. You can also request copies of these materials, upon
payment of a duplicating fee, by electronic request at the SEC's e-mail
address (publicinfo@sec.gov) or by writing the Public Reference section
of the SEC, Washington, DC 20549-0102.
You may obtain copies of a trust's fiscal quarter filings by contacting
Van Kampen Client Relations at (800) 847-2424.
PROXY VOTING POLICY AND PROCEDURES AND PROXY VOTING RECORD
You may obtain a copy of the trust'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 trust 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.
6
VAN KAMPEN TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED)
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
MUNICIPAL BONDS 151.6%
FLORIDA 143.0%
$4,500 Brevard Cnty, FL Hlth Fac Auth Hlthcare Fac Rev
First Inc Proj................................. 5.000% 04/01/34 $ 4,546,845
1,000 Broward Cnty, FL Hsg Fin Auth Multi-Family Hsg
Rev Pembroke Pk Apts Proj (AMT)................ 5.650 10/01/28 1,007,840
1,000 Broward Cnty, FL Sch Brd Ctf Partn Ser A (FSA
Insd).......................................... 5.000 07/01/22 1,031,310
4,325 Broward Cnty, FL Wtr & Swr Util Rev Ser A
(a)............................................ 5.000 10/01/26 4,491,166
1,500 Capital Tr Agy FL Rev Ft Lauderdale Proj
(AMT).......................................... 5.750 01/01/32 1,554,780
5,250 Coral Gables, FL Hlth Fac Auth Hosp Rev Baptist
Hlth South FL (FSA Insd)....................... 5.000 08/15/29 5,404,087
750 Dade Cnty, FL Ed Fac Auth Rev Exchanged From
Univ of Miami Ser B (MBIA Insd)................ 5.750 04/01/20 766,162
500 Dade Cnty, FL Wtr & Swr Sys Rev (FGIC Insd).... 5.250 10/01/26 513,355
2,640 Daytona Beach, FL Util Sys Rev Ser D Rfdg (FSA
Insd).......................................... 5.250 11/15/15 2,829,156
2,640 Daytona Beach, FL Util Sys Rev Ser D Rfdg (FSA
Insd).......................................... 5.250 11/15/16 2,824,457
1,125 Deltona, FL Util Sys Rev (MBIA Insd)........... 5.250 10/01/22 1,196,842
105 Escambia Cnty, FL Hlth Fac Auth Rev (AMBAC
Insd).......................................... 5.950 07/01/20 110,255
1,000 Escambia Cnty, FL Util Auth Util Sys Rev (FGIC
Insd).......................................... 5.250 01/01/29 1,036,560
1,250 Florida Agric & Mechanical Univ Rev Student Apt
Fac (MBIA Insd)................................ 6.500 07/01/23 1,261,812
425 Florida Hsg Fin Agy Homeownership Mtg (AMT).... 8.595 11/01/18 447,342
2,750 Florida Hsg Fin Agy Hsg Willow Lake Apts Ser
J-1 (AMT) (AMBAC Insd)......................... 5.350 07/01/27 2,786,988
1,000 Florida Hsg Fin Corp Rev Hsg Wentworth II Apts
Ser A (AMT) (AMBAC Insd)....................... 5.375 11/01/29 1,017,090
3,000 Florida Hsg Fin Corp Rev Homeowner Mtg Ser 1
(AMT) (GNMA Collateralized).................... 4.850 07/01/37 2,918,490
595 Florida Hsg Fin Corp Rev Homeowner Mtg Ser 4
(AMT) (FSA Insd)............................... 6.250 07/01/22 608,221
1,800 Florida Muni Ln Council Rev Ser A (MBIA
Insd).......................................... 5.250 11/01/15 1,922,958
960 Florida Muni Ln Council Rev Ser A (MBIA
Insd).......................................... 5.250 11/01/17 1,019,520
7,885 Florida Muni Ln Council Rev Ser A (MBIA
Insd).......................................... 5.000 02/01/35 8,112,561
2,000 Florida Ports Fin Comm Rev St Trans Tr Fd (AMT)
(MBIA Insd).................................... 5.375 06/01/27 2,044,740
8,475 Florida Ports Fin Comm Rev St Trans Tr Fd
Intermodal Pgm (AMT) (FGIC Insd)............... 5.500 10/01/29 8,905,954
2,000 Florida St Brd of Ed Cap Outlay Pub Ed Ser C
(Prerefunded @ 06/01/10) (FGIC Insd)........... 5.750 06/01/29 2,168,160
1,600 Florida St Brd of Ed Cap Outlay Pub Ed Ser C
Rfdg........................................... 5.000 06/01/16 1,650,384
12,775 Florida St Brd of Ed Cap Outlay Pub Ed Ser D
Rfdg........................................... 5.750 06/01/22 13,745,261
2,000 Florida St Brd of Ed Lottery Rev Ser A (FGIC
Insd).......................................... 5.250 07/01/17 2,108,140
5,000 Florida St Brd of Ed Lottery Rev Ser A (FGIC
Insd).......................................... 5.500 07/01/17 5,338,750
</Table>
See Notes to Financial Statements 7
VAN KAMPEN TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
FLORIDA (CONTINUED)
$4,500 Florida St Brd of Ed Pub Ed Ser A.............. 5.000% 06/01/32 $ 4,624,425
1,000 Florida St Brd of Ed Rev FL St Univ Hsg Fac Ser
A (MBIA Insd).................................. 5.000 05/01/29 1,022,630
4,735 Florida St Brd of Regt Hsg Rev Univ FL (FGIC
Insd).......................................... 5.500 07/01/28 5,093,724
1,000 Florida St Correctional Privatization Commn Ctf
Partn (MBIA Insd).............................. 5.375 08/01/14 1,076,230
2,360 Florida St Correctional Privatization Commn Ctf
Partn (MBIA Insd) (a).......................... 5.375 08/01/15 2,533,153
3,000 Florida St Dept Trans.......................... 5.000 07/01/32 3,083,520
6,000 Florida St Dept Trans Right of Way Ser A....... 5.250 07/01/21 6,423,300
5,000 Florida St Dept Trans Tpk Rev Ser A............ 5.000 07/01/30 5,176,400
1,500 Florida St Div Bd Fin Dept Gen Svc Rev Dept
Envrnmtl Preservtn 2000 Ser A (AMBAC Insd)..... 5.000 07/01/11 1,535,460
2,000 Florida St Div Bd Fin Dept Gen Svc Rev Dept
Envrnmtl Preservtn 2000 Ser A (FGIC Insd)...... 5.250 07/01/12 2,103,600
1,475 Florida St Tpk Auth Tpk Rev Dept of Trans Ser
B.............................................. 5.000 07/01/30 1,504,190
1,635 Fort Myers, FL Util Rev Ser A Rfdg (FGIC
Insd).......................................... 5.500 10/01/24 1,728,604
500 Gainesville, FL Util Sys Rev (Escrowed to
Maturity)...................................... 8.125 10/01/14 571,210
2,500 Gainesville, FL Util Sys Rev Ser A (FSA
Insd).......................................... 5.000 10/01/35 2,586,325
500 Gulf Breeze, FL Rev Loc Govt (FGIC Insd)....... 5.650 12/01/20 528,415
730 Gulf Breeze, FL Rev Loc Govt (FGIC Insd)....... 5.750 12/01/20 776,545
1,000 Gulf Breeze, FL Rev Loc Govt (FGIC Insd)....... 5.800 12/01/20 1,087,730
2,000 Highlands Cnty, FL Hlth Fac Auth Rev Hosp
Adventist Hlth Ser D........................... 5.000 11/15/35 2,009,900
2,000 Highlands Cnty, FL Hlth Fac Auth Rev Hosp
Adventist Hlth Ser D........................... 5.375 11/15/35 2,060,040
3,000 Highlands Cnty, FL Hlth Fac Auth Rev Hosp
Adventist/Sunbelt Ser A (Prerefunded @
11/15/11)...................................... 6.000 11/15/31 3,337,260
750 Hillsborough Cnty, FL Assmt Rev Capacity Assmt
Spl (FSA Insd)................................. 5.000 03/01/15 789,180
750 Hillsborough Cnty, FL Assmt Rev Capacity Assmt
Spl (FSA Insd)................................. 5.000 09/01/15 789,180
1,000 Hillsborough Cnty, FL Indl Dev Auth Hosp Rev
Tampa Gen Hosp Proj Ser B...................... 5.250 10/01/28 1,028,730
1,000 Hillsborough Cnty, FL Indl Dev Auth Hosp Rev
Tampa Gen Hosp Proj Ser B...................... 5.250 10/01/34 1,025,340
1,000 Hillsborough Cnty, FL Port Dist Rev Tampa Port
Auth Proj Ser A (AMT) (MBIA Insd).............. 5.375 06/01/27 1,049,060
1,380 Hollywood, FL Cmnty Redev Agy Beach Cra........ 5.625 03/01/24 1,447,868
2,000 Hollywood, FL Wtr & Swr Rev Impt & Rfdg (FSA
Insd).......................................... 5.000 10/01/21 2,080,380
1,500 Jacksonville, FL Econ Dev Commn Indl Dev Rev
Metro Pkg Solutions Proj (AMT) (ACA Insd)...... 5.500 10/01/30 1,565,505
2,500 Jea, FL Elec Sys Rev Ser Three A (FSA Insd).... 5.000 10/01/41 2,563,050
2,000 Jea, FL Wtr & Swr Sys Rev Ser A (FGIC Insd).... 5.000 10/01/21 2,080,380
2,250 Jea, FL Wtr & Swr Sys Rev Ser A (MBIA Insd).... 5.375 10/01/30 2,279,273
</Table>
8 See Notes to Financial Statements
VAN KAMPEN TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
FLORIDA (CONTINUED)
$7,000 Lakeland, FL Elec & Wtr Rev (Escrowed to
Maturity) (a).................................. * 10/01/13 $ 5,174,960
2,230 Lakeland, FL Elec & Wtr Rev (Escrowed to
Maturity)...................................... 5.750% 10/01/19 2,398,343
2,000 Lakeland, FL Hosp Sys Rev Lakeland Regl Hlth
Sys............................................ 5.500 11/15/32 2,078,080
1,000 Lee Cnty, FL Arpt Rev Ser A (AMT) (FSA Insd)... 5.750 10/01/22 1,064,740
1,250 Lee Cnty, FL Hsg Fin Auth Single Family Mtg Rev
Multi-Cnty Pgm Ser A (AMT) (GNMA
Collateralized)................................ 5.000 03/01/39 1,239,150
1,000 Leesburg, FL Hosp Rev Leesburg Regl Med Ctr
Proj........................................... 5.500 07/01/32 1,023,810
3,200 Leesburg, FL Util Rev (FGIC Insd).............. 5.000 10/01/34 3,300,864
1,190 Manatee Cnty, FL Pub Util Rev Impt & Rfdg (MBIA
Insd).......................................... 5.125 10/01/19 1,252,725
1,600 Manatee Cnty, FL Pub Util Rev Impt & Rfdg (MBIA
Insd).......................................... 5.125 10/01/21 1,683,200
650 Marion Cnty, FL Hosp Dist Rev Hlth Sys Munroe
Reg Impt & Rfdg................................ 5.500 10/01/29 666,231
2,135 Marion Cnty, FL Sch Brd Ctf (FSA Insd)......... 5.250 06/01/19 2,260,709
1,460 Miami Beach, FL Stormwtr Rev (FGIC Insd) (a)... 5.750 09/01/14 1,584,056
1,045 Miami Beach, FL Stormwtr Rev (FGIC Insd)....... 5.750 09/01/15 1,133,794
3,000 Miami-Dade Cnty, FL Aviation Rev Miami Intl
Arpt (AMT) (FGIC Insd)......................... 5.375 10/01/32 3,123,540
4,000 Miami-Dade Cnty, FL Aviation Rev Miami Intl
Arpt Ser A (AMT) (CIFG Insd)................... 5.000 10/01/38 4,070,560
870 Miami-Dade Cnty, FL Aviation Rev Miami Intl
Arpt Ser B (FGIC Insd)......................... 5.450 10/01/15 927,098
3,000 Miami-Dade Cnty, FL Aviation Rev Miami Intl
Arpt Ser B (FGIC Insd)......................... 5.750 10/01/29 3,233,520
2,000 Miami-Dade Cnty, FL Aviation Ser A (AMT) (FSA
Insd).......................................... 5.000 10/01/33 2,027,880
2,000 Miami-Dade Cnty, FL Ed Fac Auth Rev Ser A
(AMBAC Insd)................................... 5.750 04/01/29 2,149,060
2,000 Miami-Dade Cnty, FL Pub Fac Rev Jackson Hlth
Sys Ser A (MBIA Insd).......................... 5.000 06/01/31 2,057,320
5,000 Miami-Dade Cnty, FL Sch Brd Ctf Partn Rols RR
II R Ser 528 (Inverse Floating Rate) (Acquired
03/10/06, Cost $5,559,450) (AMBAC Insd) (a)
(b)............................................ 6.079 11/01/25 5,393,750
390 North Broward, FL Hosp Dist Rev Impt........... 6.000 01/15/31 411,353
3,860 North Broward, FL Hosp Dist Rev Impt
(Prerefunded @ 01/15/11)....................... 6.000 01/15/31 4,252,408
1,000 Orange Cnty, FL Cap Rev Impt & Rfdg (AMBAC
Insd).......................................... * 10/01/12 770,950
1,000 Orange Cnty, FL Cap Rev Impt & Rfdg (AMBAC
Insd).......................................... * 10/01/13 733,390
</Table>
See Notes to Financial Statements 9
VAN KAMPEN TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
FLORIDA (CONTINUED)
$ 980 Orange Cnty, FL Hlth Fac Auth Rev Hosp Hlthcare
Ser E.......................................... 6.000% 10/01/26 $ 1,032,479
20 Orange Cnty, FL Hlth Fac Auth Rev Hosp Hlthcare
Ser E (Prerefunded @ 10/01/09)................. 6.000 10/01/26 21,552
1,000 Orange Cnty, FL Hlth Fac Auth Rev Hosp Orlando
Regl Hlthcare Ser B............................ 5.125 11/15/39 1,014,720
1,000 Orange Cnty, FL Hsg Fin Auth Multi-Family Rev
Mtg Hands Inc Proj Ser A (Acquired 06/19/95,
Cost $1,000,000) (b)........................... 7.000 10/01/25 1,070,940
1,000 Orange Cnty, FL Sales Tax Rev Ser A Rfdg (FGIC
Insd).......................................... 5.125 01/01/20 1,047,020
1,500 Orlando & Orange Cnty Expwy Auth FL Expwy Rev
Jr Lien (FGIC Insd)............................ 5.000 07/01/28 1,520,760
1,500 Orlando, FL Util Commn Wtr & Elec Rev Ser A
Rfdg........................................... 5.000 10/01/22 1,558,080
1,000 Osceola Cnty, FL Sch Brd Ctf Ser A (AMBAC
Insd).......................................... 5.125 06/01/22 1,046,510
2,000 Osceola Cnty, FL Sch Brd Ctf Ser A (AMBAC
Insd).......................................... 5.250 06/01/27 2,103,140
2,000 Osceola Cnty, FL Trans Rev Osceola Pkwy Proj
Impt & Rfdg (MBIA Insd)........................ 5.000 04/01/21 2,085,600
1,000 Palm Beach Cnty, FL Sch Brd Ctf Partn Ser A
(Prerefunded @ 08/01/10) (FGIC Insd)........... 5.875 08/01/21 1,091,390
1,500 Palm Beach Cnty, FL Sch Brd Ctf Partn Ser D
(FSA Insd)..................................... 5.250 08/01/18 1,590,615
1,000 Palm Coast, FL Util Sys Rev (MBIA Insd)........ 5.250 10/01/20 1,064,120
1,000 Palm Coast, FL Util Sys Rev (MBIA Insd)........ 5.250 10/01/21 1,066,480
1,705 Pembroke Pines, FL Charter Sch Ser A (MBIA
Insd) (a)...................................... 5.375 07/01/14 1,836,609
1,000 Pembroke Pines, FL Cons Util Sys Rev (Escrowed
to Maturity) (FGIC Insd)....................... 6.250 09/01/11 1,083,530
1,500 Pensacola, FL Arpt Rev Ser A Rfdg (AMT) (MBIA
Insd).......................................... 6.000 10/01/12 1,589,775
1,565 Pensacola, FL Arpt Rev Ser A Rfdg (AMT) (MBIA
Insd).......................................... 6.125 10/01/18 1,666,318
500 Polk Cnty, FL Sch Brd Ctf Partn Master Lease
Ser A (FSA Insd)............................... 5.500 01/01/25 534,225
5,000 Port Saint Lucie, FL (MBIA Insd)............... 5.000 07/01/32 5,170,700
1,450 Port Saint Lucie, FL Util Rev (MBIA Insd)...... 5.000 09/01/22 1,506,028
1,000 Port Saint Lucie, FL Util Rev (MBIA Insd)...... 5.000 09/01/23 1,036,600
1,000 Port Saint Lucie, FL Util Rev Impt & Rfdg Ser A
(MBIA Insd).................................... 5.125 09/01/27 1,017,740
2,265 Reedy Creek Impt Dist FL Ser A (MBIA Insd)..... 5.000 06/01/23 2,352,723
1,835 Saint Lucie Cnty, FL Sales Tax Rev Impt & Rfdg
(MBIA Insd) (a)................................ 5.250 10/01/19 1,956,385
2,000 Saint Lucie Cnty, FL Sch Brd Ctf Ser A (FSA
Insd).......................................... 5.000 07/01/21 2,062,180
1,000 Saint Lucie Cnty, FL Sch Brd Ctf Ser A (FSA
Insd).......................................... 5.000 07/01/23 1,028,970
1,420 Sebring, FL Wtr & Wastewtr Rev Rfdg (FGIC
Insd).......................................... 5.250 01/01/19 1,508,892
</Table>
10 See Notes to Financial Statements
VAN KAMPEN TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
FLORIDA (CONTINUED)
$1,000 South Lake Cnty Hosp Dist FL South Lake Hosp
Inc............................................ 6.375% 10/01/28 $ 1,085,980
1,500 South Miami, FL Hlth Fac Auth Hosp Rev Baptist
Hlth (AMBAC Insd).............................. 5.250 11/15/33 1,565,265
1,000 Tallahassee, FL Hlth Fac Rev Tallahassee Mem
Hlthcare Proj.................................. 6.375 12/01/30 1,061,840
1,750 Tampa, FL Hosp Rev Cap Impt H Lee Moffitt Ser
A.............................................. 5.750 07/01/19 1,818,845
1,800 Tampa, FL Hosp Rev Cap Impt H Lee Moffitt Ser
A.............................................. 5.750 07/01/29 1,857,906
1,000 Tampa, FL Occupational License Ser A Rfdg (FGIC
Insd).......................................... 5.375 10/01/15 1,077,780
1,000 Tampa, FL Util Tax & Spl Rev Ser A Rfdg (AMBAC
Insd).......................................... 5.250 10/01/20 1,067,200
5,150 Tampa-Hillsborough Cnty, FL Expwy Auth Rev
(AMBAC Insd)................................... 5.000 07/01/25 5,372,995
2,390 University Cent FL Assn Inc FL Ctf Partn Ser A
(FGIC Insd) (a)................................ 5.125 10/01/22 2,504,792
2,750 University Cent FL Assn Inc FL Ctf Partn Ser A
(FGIC Insd).................................... 5.000 10/01/35 2,823,728
200 University Cent FL Ctf Partn UCF Convocation
Corp Ser A (FGIC Insd)......................... 5.000 10/01/35 205,056
1,000 Village Ctr Cmnty Dev Dist FL Recreational Rev
Ser A (MBIA Insd).............................. 5.200 11/01/25 1,052,530
2,500 Village Ctr Cmnty Dev Dist FL Recreational Rev
Ser A (MBIA Insd).............................. 5.125 11/01/36 2,607,400
2,000 Village Ctr Cmnty Dev Dist FL Util Rev (MBIA
Insd).......................................... 5.250 10/01/23 2,122,860
1,000 Village Ctr Cmnty Dev Dist FL Util Rev
(Escrowed to Maturity) (FGIC Insd)............. 6.000 11/01/18 1,149,110
3,250 Volusia Cnty, FL Ed Fac Auth Rev Ed Fac Embry
Riddle Rfdg (Radian Insd)...................... 5.000 10/15/35 3,298,913
1,000 Volusia Cnty, FL Ed Fac Auth Rev Ed Fac Embry
Riddle Aero Ser A.............................. 5.750 10/15/29 1,033,080
3,000 West Orange Hlthcare Dist FL Ser A............. 5.800 02/01/31 3,123,420
820 West Palm Beach, FL Cmnty Redev Agy Northwood
Cmnty Redev.................................... 5.000 03/01/35 823,428
-------------
280,257,493
-------------
PUERTO RICO 6.6%
2,980 Childrens Tr Fd PR Tob Settlement Rev.......... 5.500 05/15/39 3,049,821
2,855 Childrens Tr Fd PR Tob Settlement Rev.......... 5.625 05/15/43 2,932,827
2,000 Puerto Rico Comwlth Hwy & Tran Auth Hwy Rev Ser
W Rfdg......................................... 5.500 07/01/15 2,155,080
4,000 Puerto Rico Comwlth Hwy & Tran Auth Hwy Rev Ser
Y Rfdg (FSA Insd).............................. 6.250 07/01/21 4,825,080
-------------
12,962,808
-------------
U.S. VIRGIN ISLANDS 2.0%
1,500 Virgin Islands Pub Fin Auth Rev Gross Rcpt
Taxes Ln Nt Ser A.............................. 6.375 10/01/19 1,643,550
</Table>
See Notes to Financial Statements 11
VAN KAMPEN TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
U.S. VIRGIN ISLANDS (CONTINUED)
$1,000 Virgin Islands Pub Fin Auth Rev Gross Rcpt
Taxes Ln Nt Ser A (c).......................... 6.500% 10/01/24 $ 1,096,880
1,000 Virgin Islands Pub Fin Auth Rev Gross Rcpt
Taxes Ln Nt Ser A (ACA Insd)................... 6.125 10/01/29 1,084,440
-------------
3,824,870
-------------
TOTAL LONG-TERM INVESTMENTS 151.6%
(Cost $283,518,648)...................................................... 297,045,171
SHORT-TERM INVESTMENTS 1.0%
(Cost $2,000,000)........................................................ 2,000,000
-------------
TOTAL INVESTMENTS 152.6%
(Cost $285,518,648)...................................................... 299,045,171
OTHER ASSETS IN EXCESS OF LIABILITIES 1.5%................................ 2,999,831
PREFERRED SHARES (INCLUDING ACCRUED DISTRIBUTIONS) (54.1%)................ (106,078,927)
-------------
NET ASSETS APPLICABLE TO COMMON SHARES 100.0%............................. $ 195,966,075
=============
</Table>
Percentages are calculated as a percentage of net assets applicable to common
shares.
* Zero coupon bond
(a) The Trust owns 100% of the outstanding bond issuance.
(b) These securities are restricted and may be resold only in transactions
exempt from registration which are normally those transactions with
qualified institutional buyers. Restricted securities comprise 3.3% of net
assets applicable to common shares.
(c) All or a portion of this security has been physically segregated in
connection with open futures contracts.
ACA--American Capital Access
AMBAC--AMBAC Indemnity Corp.
AMT--Alternative Minimum Tax
CIFG--CDC IXIS Financial Guaranty
FGIC--Financial Guaranty Insurance Co.
FSA--Financial Security Assurance Inc.
GNMA--Government National Mortgage Association
MBIA--Municipal Bond Investors Assurance Corp.
Radian--Radian Asset Assurance
12 See Notes to Financial Statements
VAN KAMPEN TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
FUTURES CONTRACTS OUTSTANDING AS OF APRIL 30, 2006:
<Table>
<Caption>
UNREALIZED
APPRECIATION/
CONTRACTS DEPRECIATION
SHORT CONTRACTS:
U.S. Treasury Notes 5-Year Futures, June 2006 (Current
Notional Value of $104,156 per contract).................. 281 $200,668
=== ========
</Table>
SWAP AGREEMENTS OUTSTANDING AS OF APRIL 30, 2006:
INTEREST RATE SWAPS
<Table>
<Caption>
PAY/
RECEIVE NOTIONAL UNREALIZED
FLOATING FIXED EXPIRATION AMOUNT APPRECIATION/
COUNTERPARTY FLOATING RATE INDEX RATE RATE DATE (000) DEPRECIATION
JP Morgan Chase Bank,
N.A. ............... USD-BMA Municipal
Swap Index Receive 4.375% 07/11/26 $4,270 $ 4,358
JP Morgan Chase Bank,
N.A. ............... USD-BMA Municipal
Swap Index Receive 4.137 06/28/26 4,900 141,871
-------------
$146,229
=============
</Table>
See Notes to Financial Statements 13
VAN KAMPEN TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
April 30, 2006 (Unaudited)
<Table>
ASSETS:
Total Investments (Cost $285,518,648)....................... $299,045,171
Cash........................................................ 17,560
Interest Receivable......................................... 3,788,867
Swap Contracts.............................................. 146,229
Other....................................................... 3,361
------------
Total Assets............................................ 303,001,188
------------
LIABILITIES:
Payables:
Investment Advisory Fee................................... 136,768
Variation Margin on Futures............................... 43,906
Income Distributions--Common Shares....................... 18,485
Other Affiliates.......................................... 14,884
Trustees' Deferred Compensation and Retirement Plans........ 682,751
Accrued Expenses............................................ 59,392
------------
Total Liabilities....................................... 956,186
Preferred Shares (including accrued distributions).......... 106,078,927
------------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $195,966,075
============
NET ASSET VALUE PER COMMON SHARE ($195,966,075 divided by
11,711,732 shares outstanding)............................ $ 16.73
============
NET ASSETS CONSIST OF:
Common Shares ($.01 par value with an unlimited number of
shares authorized, 11,711,732 shares issued and
outstanding).............................................. 117,117
Paid in Surplus............................................. 181,700,888
Net Unrealized Appreciation................................. 13,873,420
Accumulated Net Realized Gain............................... 227,282
Accumulated Undistributed Net Investment Income............. 47,368
------------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $195,966,075
============
PREFERRED SHARES ($.01 par value, authorized 100,000,000
shares, 4,240 issued with liquidation preference of
$25,000 per share)........................................ $106,000,000
============
NET ASSETS INCLUDING PREFERRED SHARES....................... $301,966,075
============
</Table>
14 See Notes to Financial Statements
VAN KAMPEN TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
FINANCIAL STATEMENTS continued
Statement of Operations
For the Six Months Ended April 30, 2006 (Unaudited)
<Table>
INVESTMENT INCOME:
Interest.................................................... $ 7,427,233
-----------
EXPENSES:
Investment Advisory Fee..................................... 830,204
Preferred Share Maintenance................................. 150,019
Trustees' Fees and Related Expenses......................... 48,758
Legal....................................................... 21,906
Custody..................................................... 12,985
Other....................................................... 139,716
-----------
Total Expenses........................................ 1,203,588
-----------
NET INVESTMENT INCOME....................................... $ 6,223,645
===========
REALIZED AND UNREALIZED GAIN/LOSS:
Realized Gain/Loss:
Investments............................................... $ 1,034,698
Futures................................................... 401,885
-----------
Net Realized Gain........................................... 1,436,583
-----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 16,680,494
-----------
End of the Period:
Investments............................................. 13,526,523
Futures................................................. 200,668
Swap Contracts.......................................... 146,229
-----------
13,873,420
-----------
Net Unrealized Depreciation During the Period............... (2,807,074)
-----------
NET REALIZED AND UNREALIZED LOSS............................ $(1,370,491)
===========
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS..................... $(1,774,605)
===========
NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM
OPERATIONS................................................ $ 3,078,549
===========
</Table>
See Notes to Financial Statements 15
VAN KAMPEN TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
FINANCIAL STATEMENTS continued
Statements of Changes in Net Assets (Unaudited)
<Table>
<Caption>
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2006 OCTOBER 31, 2005
------------------------------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income................................... $ 6,223,645 $ 5,676,723
Net Realized Gain....................................... 1,436,583 302,840
Net Unrealized Depreciation During the Period........... (2,807,074) (2,632,771)
Distributions to Preferred Shareholders:
Net Investment Income................................. (1,655,613) (1,299,436)
Net Realized Gain..................................... (118,992) -0-
------------ ------------
Change in Net Assets Applicable to Common Shares from
Operations............................................ 3,078,549 2,047,356
Distributions to Common Shareholders:
Net Investment Income................................. (4,672,981) (4,583,910)
Net Realized Gain..................................... (466,127) -0-
------------ ------------
NET CHANGE IN NET ASSETS APPLICABLE TO COMMON SHARES
FROM INVESTMENT ACTIVITIES............................ (2,060,559) (2,536,554)
FROM CAPITAL TRANSACTIONS:
Proceeds from Common Shares Acquired Through Merger..... -0- 103,906,391
------------ ------------
TOTAL INCREASE/DECREASE IN NET ASSETS APPLICABLE TO
COMMON SHARES......................................... (2,060,559) 101,369,837
NET ASSETS APPLICABLE TO COMMON SHARES:
Beginning of the Period................................. 198,026,634 96,656,797
------------ ------------
End of the Period (Including accumulated undistributed
net investment income of $47,368 and $152,317,
respectively)......................................... $195,966,075 $198,026,634
============ ============
</Table>
16 See Notes to Financial Statements
VAN KAMPEN TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
FINANCIAL HIGHLIGHTS (UNAUDITED)
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE
TRUST OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, ------------------------------------------------
2006 2005 2004 2003 2002 (f) 2001
-------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF THE
PERIOD................................... $ 16.91 $ 17.37 $ 17.16 $ 17.79 $ 17.69 $ 16.53
------- ------- ------- ------- ------- -------
Net Investment Income.................... .53(a) 1.01 1.05 1.10 1.20 1.16
Net Realized and Unrealized Gain/Loss.... (.12) (.42) .57 .04 .12 1.40
Common Share Equivalent of Distributions
Paid to Preferred Shareholders:
Net Investment Income.................. (.14) (.23) (.11) (.04) (.14) (.27)
Net Realized Gain...................... (.01) -0- (.01) (.07) (.02) (.10)
------- ------- ------- ------- ------- -------
Total from Investment Operations.......... .26 .36 1.50 1.03 1.16 2.19
Distributions Paid to Common Shareholders:
Net Investment Income.................... (.40) (.82) (1.03) (1.10) (.97) (.83)
Net Realized Gain........................ (.04) -0- (.26) (.56) (.09) (.20)
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF THE PERIOD........ $ 16.73 $ 16.91 $ 17.37 $ 17.16 $ 17.79 $ 17.69
======= ======= ======= ======= ======= =======
Common Share Market Price at End of the
Period................................... $ 14.83 $ 14.52 $ 15.64 $ 16.32 $ 15.80 $ 15.14
Total Return (b).......................... 5.19%* -1.97% 3.71% 14.37% 11.63% 20.31%
Net Assets Applicable to Common Shares at
End of the Period (In millions).......... $ 196.0 $ 198.0 $ 96.7 $ 95.4 $ 98.9 $ 98.4
Ratio of Expenses to Averages Net Assets
Applicable to Common Shares (c).......... 1.22% 1.54% 1.44% 1.43% 1.52% 2.01%
Ratio of Net Investment Income to Average
Net Assets Applicable to Common Shares
(c)...................................... 6.33% 5.85% 6.16% 6.33% 6.84% 7.72%
Portfolio Turnover........................ 18%* 15% 14% 25% 33% 23%
SUPPLEMENTAL RATIOS:
Ratio of Expenses to Average Net Assets
Including Preferred Shares (c)........... .80% .97% .90% .91% .96% 1.14%
Ratio of Net Investment Income to Average
Net Assets Applicable to Common Shares
(d)...................................... 4.64% 4.51% 5.51% 6.11% 6.05% 5.99%
SENIOR SECURITIES:
Total Preferred Shares Outstanding........ 4,240 4,240 2,240 2,240 2,240 2,240
Asset Coverage Per Preferred Share (e).... $71,237 $71,725 $68,169 $67,613 $69,188 $68,932
Involuntary Liquidating Preference Per
Preferred Share.......................... $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
Average Market Value Per Preferred
Share.................................... $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
</Table>
* Non-Annualized
(a)Based on average shares outstanding.
(b)Total return assumes an investment at the common share market price at the
beginning of the period indicated, reinvestment of all distributions for the
period in accordance with the Trust's dividend reinvestment plan, and sale of
all shares at the closing common share market price at the end of the period
indicated.
(c)Ratios do not reflect the effect of dividend payments to preferred
shareholders.
(d)Ratios reflect the effect of dividend payments to preferred shareholders.
(e)Calculated by subtracting the Trust's total liabilities (not including the
preferred shares) from the Trust's total assets and dividing this by the
number of preferred shares outstanding.
(f)As required, effective November 1, 2001, the Trust has adopted the provisions
of the AICPA Audit and Accounting Guide for Investment Companies and began
accreting market discount on fixed income securities. The effect of this
change for the year ended October 31, 2002 was to increase net investment
income per share by $.01, decrease net realized and unrealized gains and
losses per share by $.01 and increase the ratio of net investment income to
average net assets applicable to common shares by .07%. Per share, ratios,
and supplemental data for periods prior to October 31, 2002 have not been
restated to reflect this change in presentation.
See Notes to Financial Statements 17
VAN KAMPEN TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2006 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen Trust for Investment Grade Florida Municipals (the "Trust") is
registered as a non-diversified, closed-end management investment company under
the Investment Company Act of 1940 (the "1940 Act"), as amended. The Trust's
investment objective is to seek to provide a high level of current income exempt
from federal income taxes and Florida state intangibles taxes, consistent with
preservation of capital. The Trust will invest in a portfolio consisting
substantially of Florida municipal obligations rated investment grade at the
time of investment, but may invest up to 20% of its assets in unrated securities
which are believed to be of comparable quality to those rated investment grade.
The Trust commenced investment operations on March 27, 1992.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
A. SECURITY VALUATION Municipal bonds are valued by independent pricing services
or dealers using the mean of the bid and asked prices or, in the absence of
market quotations, at fair value based upon yield data relating to municipal
bonds with similar characteristics and general market conditions. Securities
which are not valued by independent pricing services or dealers are valued at
fair value using procedures established in good faith by the Board of Trustees.
Futures contracts are valued at the settlement price established each day on the
exchange on which they are traded. Short-term securities with remaining
maturities of 60 days or less are valued at amortized cost, which approximates
market value.
B. SECURITY TRANSACTIONS Security transactions are recorded on a trade date
basis. Realized gains and losses are determined on an identified cost basis. The
Trust may purchase and sell securities on a "when-issued" or "delayed delivery"
basis, with settlement to occur at a later date. The value of the security so
purchased is subject to market fluctuations during this period. The Trust will
segregate assets with the custodian having an aggregate value at least equal to
the amount of the when-issued or delayed delivery purchase commitments until
payment is made. At April 30, 2006, there were no when-issued or delayed
delivery purchase commitments.
C. INVESTMENT INCOME Interest income is recorded on an accrual basis. Bond
premium is amortized and discount is accreted over the expected life of each
applicable security.
D. FEDERAL INCOME TAXES It is the Trust's policy to comply with the requirements
of Subchapter M of the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all of its taxable income to its
shareholders. Therefore, no provision for federal income taxes is required. The
Trust intends to utilize provisions of the federal income tax laws which allow
it to carry a realized capital loss forward for eight years following the year
of the loss and offset such losses against any future realized capital gains.
During the prior fiscal year, the Trust utilized capital losses carried forward
of $87,002.
18
VAN KAMPEN TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2006 (UNAUDITED) continued
At April 30, 2006, the cost and related gross unrealized appreciation and
depreciation are as follows:
<Table>
Cost of investments for tax purposes........................ $285,317,829
============
Gross tax unrealized appreciation........................... $ 14,467,005
Gross tax unrealized depreciation........................... (739,663)
------------
Net tax unrealized appreciation on investments.............. $ 13,727,342
============
</Table>
E. DISTRIBUTION OF INCOME AND GAINS The Trust declares and pays monthly
dividends from net investment income to common shareholders. Net realized gains,
if any, are distributed annually on a pro rata basis to common and preferred
shareholders. Distributions from net realized gains for book purposes may
include short-term capital gains and a portion of futures gains, which are
included as ordinary income for tax purposes.
The tax character of distributions paid during the year ended October 31,
2005 was as follows:
<Table>
Distributions paid from:
Ordinary income........................................... $ 21,317
Tax exempt income......................................... 5,819,298
Long-term capital gain.................................... -0-
----------
$5,840,615
==========
</Table>
As of October 31, 2005, the components of distributable earnings on a tax
basis were as follows:
<Table>
Undistributed long-term capital gain........................ $543,346
Undistributed tax exempt income............................. 601,979
</Table>
Net realized gains or losses may differ for financial reporting and tax
purposes primarily as a result of the deferral of losses relating to wash sale
transactions.
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of the Trust's Investment Advisory Agreement, Van Kampen Asset
Management (the "Adviser") provides investment advice and facilities to the
Trust for an annual fee payable monthly of .55% of the average daily net assets
of the Trust.
For the six months ended April 30, 2006, the Trust recognized expenses of
approximately $7,000, representing legal services provided by Skadden, Arps,
Slate, Meagher & Flom LLP, of which a trustee of the Trust is a partner of such
firm and he and his law firm provide legal services as legal counsel to the
Trust.
Under separate Legal Services, Accounting Services and Chief Compliance
Officer (CCO) Employment agreements, the Adviser provides accounting and legal
services and the CCO provides compliance services to the Trust. The costs of
these services are allocated to each trust. For the six months ended April 30,
2006, the Trust recognized expenses of approximately $25,500, representing Van
Kampen Investments Inc.'s or its affiliates' (collectively "Van Kampen") cost of
providing accounting and legal services to the Trust, as well as, the salary,
benefits and related costs of the CCO and related support staff paid by
19
VAN KAMPEN TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2006 (UNAUDITED) continued
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 Accounting Services and CCO Employment agreement are
reported as part of "Other" expenses on the Statement of Operations.
Certain officers and trustees of the Trust are also officers and directors
of Van Kampen. The Trust does not compensate its officers or trustees who are
also officers of Van Kampen.
The Trust provides deferred compensation and retirement plans for its
trustees who are not officers of Van Kampen. Under the deferred compensation
plan, trustees may elect to defer all or a portion of their compensation to a
later date. Benefits under the retirement plan are payable upon retirement for a
ten-year period and are based upon each trustee's years of service to the Trust.
The maximum annual benefit per trustee under the plan is $2,500.
3. CAPITAL TRANSACTIONS
For the six months ended April 30, 2006 and the year ended October 31, 2005,
transactions in common shares were as follows:
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2006 OCTOBER 31, 2005
Beginning Shares........................................ 11,711,732 5,563,438
Shares Acquired Through Merger.......................... -0- 6,148,294
---------- ----------
Ending Shares........................................... 11,711,732 11,711,732
========== ==========
</Table>
On October 28, 2005, the Trust acquired all of the assets and liabilities of
the Van Kampen Florida Quality Municipal Trust (ticker symbol VFM) through a tax
free reorganization approved by VFM shareholders on October 21, 2005. The Trust
issued 6,148,294 common shares with a net asset value $103,906,391 and 2,000
Auction Preferred Shares (APS) with a liquidation value of $50,000,000 in
exchange for VFM net assets. The shares of VFM were converted into Trust shares
at a ratio of 0.943077 to 1 and 1 to 1, for common shares and APS, respectively.
Included in these net assets was a deferred compensation balance of $180,185 and
a deferred pension balance of $72,512. Net unrealized appreciation of VFM as of
October 28, 2005 was $7,666,315. The Trust assumed VFM's book to tax accretion
differences, which resulted in a $116,833 increase to accumulated undistributed
net investment income and a corresponding decrease to net unrealized
appreciation. Combined net assets applicable to common shares on the day of
reorganization were $197,913,241 and combined net assets including preferred
shares were $303,913,241. The Trust incurred merger expenses of $244,440, which
represent costs related to the preparation, printing and distribution of the
Proxy Statement/Prospectus, Reorganization Agreement and registration statements
as well as legal, audit and filing fees.
4. INVESTMENT TRANSACTIONS
During the period, the cost of purchases and proceeds from sales of investments,
excluding short-term investments, were $55,847,807 and $60,661,110,
respectively.
20
VAN KAMPEN TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2006 (UNAUDITED) continued
5. DERIVATIVE FINANCIAL INSTRUMENTS
A derivative financial instrument in very general terms refers to a security
whose value is "derived" from the value of an underlying asset, reference rate
or index.
In order to seek to manage the interest rate exposure of the Trust's
portfolio in a changing interest rate environment, the Trust may purchase or
sell financial futures contracts or engage in transactions involving interest
rate swaps, caps, floors or collars. The Trust expects to enter into these
transactions primarily as a hedge against anticipated interest rate or
fixed-income market changes, for duration management or for risk management
purposes, but may also enter into these transactions to generate additional
income. All of the Trust's portfolio holdings, including derivative instruments,
are marked to market each day with the change in value reflected in unrealized
appreciation/depreciation. Upon disposition, a realized gain or loss is
recognized accordingly, except when taking delivery of a security underlying a
futures contract. In this instance, the recognition of gain or loss is postponed
until the disposal of the security underlying the futures contract. Risks may
arise as a result of the potential inability of the counterparties to meet the
terms of their contracts.
Summarized below are the specific types of derivative financial instruments
used by the Trust.
A. FUTURES CONTRACTS A futures contract is an arrangement involving the delivery
of a particular asset on a specified future date at an agreed upon price. The
Trust generally invests in exchange traded futures contracts on U.S. Treasury
Bonds and Notes and typically closes the contract prior to the delivery date.
These contracts are generally used to manage the Trust's effective maturity and
duration. Upon entering into futures contracts, the Trust maintains an amount of
cash or liquid securities with a value equal to a percentage of the contract
amount with either a futures commission merchant pursuant to the rules and
regulations promulgated under the 1940 Act, as amended, or with its custodian in
an account in the broker's name. This amount is known as initial margin. During
the period the futures contract is open, payments are received from or made to
the broker based upon changes in the value of the contract (the variation
margin). The risk of loss associated with a futures contract is in excess of the
variation margin reflected on the Statement of Assets and Liabilities.
Transactions in futures contracts for the six months ended April 30, 2006,
were as follows:
<Table>
<Caption>
CONTRACTS
Outstanding at October 31, 2005............................. 218
Futures Opened.............................................. 1,090
Futures Closed.............................................. (1,027)
------
Outstanding at April 30, 2006............................... 281
======
</Table>
B. INDEXED SECURITY An inverse floating rate security is one where the coupon is
inversely indexed to a short-term floating interest rate multiplied by a
specific factor. As the floating rate rises, the coupon is reduced. Conversely,
as the floating rate declines, the coupon is increased. The price of these
securities may be more volatile than the price of a comparable fixed rate
security. These instruments are typically used by the Trust to enhance the yield
of the portfolio. These instruments are identified in the portfolio of
investments.
21
VAN KAMPEN TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2006 (UNAUDITED) continued
C. INTEREST RATE SWAPS The Trust may enter into interest rate swaps primarily to
preserve a return or spread on a particular investment or portion of its
portfolio, as a duration management technique or to protect against any increase
in the price of securities the Trust anticipates purchasing at a later date.
Interest rate swaps are contractual agreements to exchange periodic interest
payment streams calculated on a predetermined notional principal amount.
Interest rate swaps generally involve one party paying a fixed interest rate and
the other party paying a variable rate. The Trust will usually enter into swaps
on a net basis, i.e, the two payment streams are netted out in a cash settlement
on the payment date or dates specified in the instrument, with the Trust
receiving or paying, as the case may be, only the net amount of the two
payments. The Trust accrues the net amount with respect to each swap on a daily
basis. This net amount is recorded within unrealized appreciation/depreciation
on swap contracts. Upon cash settlement of the periodic payments, the net amount
is recorded as realized gain/loss on swap contracts on the Statement of
Operations. Risks may arise as a result of the potential inability of the
counterparties to meet the terms of their contracts. If there is a default by
the counterparty, the Trust will have contractual remedies pursuant to the
agreements related to the transaction.
6. PREFERRED SHARES
The Trust has outstanding 4,240 APS in two series. Series A contains 2,240
shares while Series B contains 2,000 shares. Dividends are cumulative and the
dividend rate is currently reset every 28 days through an auction process. The
average rate in effect on April 30, 2006 was 3.748%. During the six months ended
April 30, 2006, the rates ranged from 2.650% to 5.125%.
The Trust pays annual fees equivalent to .25% of the preferred share
liquidation value for the remarketing efforts associated with the preferred
auctions. These fees are included as a component of "Preferred Share
Maintenance" expense on the Statement of Operations.
The APS are redeemable at the option of the Trust in whole or in part at the
liquidation value of $25,000 per share plus accumulated and unpaid dividends.
The Trust is subject to certain asset coverage tests and the APS are subject to
mandatory redemption if the tests are not met.
7. INDEMNIFICATIONS
The Trust enters into contracts that contain a variety of indemnifications. The
Trust's maximum exposure under these arrangements is unknown. However, the Trust
has not had prior claims or losses pursuant to these contracts and expects the
risk of loss to be remote.
22
VAN KAMPEN TRUST FOR INVESTMENT GRADE FLORIDA MUNICIPALS
BOARD OF TRUSTEES, OFFICERS AND IMPORTANT ADDRESSES
BOARD OF TRUSTEES
DAVID C. ARCH
JERRY D. CHOATE
ROD DAMMEYER
LINDA HUTTON HEAGY
R. CRAIG KENNEDY
HOWARD J KERR
JACK E. NELSON
HUGO F. SONNENSCHEIN
WAYNE W. WHALEN* - Chairman
SUZANNE H. WOOLSEY
OFFICERS
RONALD E. ROBISON
President and Principal Executive Officer
DENNIS SHEA
Vice President
J. DAVID GERMANY
Vice President
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
INVESTMENT ADVISER
VAN KAMPEN ASSET MANAGEMENT
1221 Avenue of the Americas
New York, New York 10020
CUSTODIAN
STATE STREET BANK
AND TRUST COMPANY
One Lincoln Street
Boston, Massachusetts 02111
TRANSFER AGENT
COMPUTERSHARE TRUST COMPANY, N.A.
c/o Computershare Investor Services
P.O. Box 43010
Providence, Rhode Island 02940-3010
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 60606
* "Interested persons" of the Trust, as defined in the Investment Company Act
of 1940, as amended.
23
Van Kampen Trust for Investment Grade Florida Municipals
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 Trust for Investment Grade Florida Municipals
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.
(continued on back)
Van Kampen Trust for Investment Grade Florida Municipals
An Important Notice Concerning Our U.S. Privacy Policy continued
B. INFORMATION WE DISCLOSE TO THIRD PARTIES. We do not disclose personal
information that we collect about you to non-affiliated third parties except
to enable them to provide services on our behalf, to perform joint marketing
agreements with other financial institutions, or as otherwise required or
permitted by law. For example, some instances where we may disclose
information about you to non-affiliated third parties include: for servicing
and processing transactions, to offer our own products and services, to
protect against fraud, for institutional risk control, to respond to
judicial process or to perform services on our behalf. When we share
personal information with these companies, they are required to limit their
use of personal information to the particular purpose for which it was
shared and they are not allowed to share personal information with others
except to fulfill that limited purpose.
3. HOW DO WE PROTECT THE SECURITY AND CONFIDENTIALITY OF PERSONAL
INFORMATION WE COLLECT ABOUT YOU?
We maintain physical, electronic and procedural security measures to help
safeguard the personal information we collect about you. We have internal
policies governing the proper handling of client information. Third parties
that provide support or marketing services on our behalf may also receive
personal information, and we require them to adhere to confidentiality
standards with respect to such information.
Van Kampen Funds Inc.
1 Parkview Plaza
P.O. Box 5555
Oakbrook Terrace, IL 60181-5555
www.vankampen.com
Copyright (C)2006 Van Kampen Funds Inc. All rights reserved.
Member NASD/SIPC.
VTF SAR 6/06
(VAN KAMPEN INVESTMENTS SHINE LOGO) RN06-01540P-Y04/06
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 Trust's principal executive officer and principal financial officer have
concluded that the Trust's disclosure controls and procedures are sufficient to
ensure that information required to be disclosed by the Trust in this Form
N-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 Trust For Investment Grade Florida Municipals
By: /s/ Ronald E. Robison
----------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: June 20, 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: June 20, 2006
By: /s/ Phillip G. Goff
--------------------
Name: Phillip G. Goff
Title: Principal Financial Officer
Date: June 20, 2006