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 811-7088
Van Kampen Massachusetts Value Municipal Income Trust
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
1221 Avenue of the Americas, New York, New York 10020
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Ronald Robison
1221 Avenue of the Americas, New York, New York 10020
- --------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: 212-762-4000
Date of fiscal year end: 10/31
Date of reporting period: 4/30/06
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
Massachusetts Value Municipal Income Trust performed during the
semiannual period. The portfolio management team will provide an overview
of the market conditions and discuss some of the factors that affected
investment performance during the reporting period. In addition, this
report includes the trust's financial statements and a list of trust
investments as of April 30, 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 THE TRUST SHARES MAY THEREFORE BE LESS THAN WHAT YOU
PAID FOR THEM. ACCORDINGLY, YOU CAN LOSE MONEY INVESTING IN THIS TRUST.
INCOME MAY SUBJECT CERTAIN INDIVIDUALS TO THE FEDERAL ALTERNATIVE MINIMUM
TAX (AMT).
<Table>
<Caption>
---------------------------------------------------------------------------------------
NOT FDIC INSURED OFFER NO BANK GUARANTEE MAY LOSE VALUE
---------------------------------------------------------------------------------------
NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY NOT A DEPOSIT
---------------------------------------------------------------------------------------
</Table>
Performance Summary as of 4/30/06
<Table>
<Caption>
MASSACHUSETTS VALUE MUNICIPAL INCOME TRUST
SYMBOL: VMV
- ------------------------------------------------------------
AVERAGE ANNUAL BASED ON BASED ON
TOTAL RETURNS MARKET PRICE NAV
Since Inception (4/30/93) 6.20% 6.38%
10-year 8.54 7.20
5-year 7.79 6.96
1-year -0.27 0.98
6-month 3.95 1.13
- ------------------------------------------------------------
</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 Massachusetts Municipal Bond Index is a broad-based
statistical composite of Massachusetts 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
from high yield municipal bond funds.
Massachusetts has lagged other states' economic recoveries, but continues to
improve. Growing tax receipts have helped replenish the state's previously
depleted reserves, and the Commonwealth has recently benefited from prudent
financial management. Despite these strides, Massachusetts maintains a high
level of debt and faces significant unfunded pension liabilities. Governor
Romney's call for health insurance coverage for all Massachusetts citizens
remains a closely watched proposal in the Commonwealth.
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 an NAV basis, the trust underperformed its benchmark index, the
Lehman Brothers Massachusetts Municipal Bond Index. On a market price basis, the
trust outperformed its benchmark.
TOTAL RETURNS FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2006
<Table>
<Caption>
- -------------------------------------------------------------
LEHMAN BROTHERS
BASED ON BASED ON MASSACHUSETTS MUNICIPAL
NAV MARKET PRICE BOND INDEX
1.13% 3.95% 1.49%
- -------------------------------------------------------------
</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 what we believed to be
high quality securities with 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. We also added AA rated single-family housing bonds, which
offered attractive yields.
3
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.
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 longer than 20 years. Meanwhile, we sold
shorter pre-refunded issues and other securities 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 higher education,
general purpose and bridge, tunnel, and toll road sectors. Bonds rated AA or
above represented 74 percent of investments.
VMV'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.
<Table>
TOP 5 SECTORS AS OF 4/30/06 RATINGS ALLOCATION AS OF 4/30/06
Higher Education 20.9% AAA/Aaa 61.3%
General Purpose 13.7 AA/Aa 12.4
Bridge, Tunnel & Toll Road 11.7 A/A 11.9
Water & Sewer 9.7 BBB/Baa 12.9
Hospital 8.8 BB/Ba 1.5
</Table>
Subject to change daily. Provided for informational purposes only and should not
be deemed as a recommendation to buy or sell the securities mentioned or
securities in the sectors shown above. Ratings are as a percentage of total
investments. Sectors are as a percentage of long-term investments. Securities
are classified by sectors that represent broad groupings of related industries.
Van Kampen is a wholly owned subsidiary of a global securities firm which is
engaged in a wide range of financial services including, for example, securities
trading and brokerage activities, investment banking, research and analysis,
financing and financial advisory services. Rating allocations based upon ratings
as issued by Standard and Poor's and Moody's, respectively.
4
FOR MORE INFORMATION ABOUT PORTFOLIO HOLDINGS
Each Van Kampen trust provides a complete schedule of portfolio holdings
in its semiannual and annual reports within 60 days of the end of the
trust's second and fourth fiscal quarters. 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.
5
VAN KAMPEN MASSACHUSETTS VALUE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED)
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ---------------------------------------------------------------------------------------------
MUNICIPAL BONDS 156.6%
MASSACHUSETTS 138.2%
$1,000 Boston, MA Ser A Rfdg (MBIA Insd)........... 5.000% 02/01/21 $ 1,041,450
2,000 Boston, MA Wtr & Swr Commn Rev Gen Sr Ser
A........................................... 5.000 11/01/21 2,092,340
2,385 Greater Lawrence, MA San Dist (MBIA Insd)
(Prerefunded @ 06/15/10).................... 6.000 06/15/17 2,608,808
1,000 Holyoke, MA Gas & Elec Dept Rev Ser A (MBIA
Insd)....................................... 5.000 12/01/31 1,025,050
1,000 Martha's Vineyard, MA Ld Bk Rev (AMBAC
Insd)....................................... 5.000 05/01/22 1,045,280
165 Massachusetts Ed Ln Auth Ed Ln Rev Issue E
Ser B (AMBAC Insd) (AMT).................... 6.250 07/01/11 165,379
210 Massachusetts Ed Ln Auth Ed Ln Rev Issue E
Ser B (AMBAC Insd) (AMT).................... 6.300 07/01/12 210,481
1,000 Massachusetts St Dev Fin Agy M/Srbc Proj Ser
A (MBIA Insd)............................... 5.125 08/01/28 1,038,160
1,000 Massachusetts St Dev Fin Agy Rev College
Pharmacy & Allied Hlth Ser D................ 5.000 07/01/35 1,019,100
1,000 Massachusetts St Dev Fin Agy Rev Curry
College Ser A (ACA Insd).................... 5.000 03/01/35 994,640
250 Massachusetts St Dev Fin Agy Rev Evergreen
Ctr Inc..................................... 5.000 01/01/24 237,728
500 Massachusetts St Dev Fin Agy Rev Evergreen
Ctr Inc..................................... 5.500 01/01/35 497,100
1,000 Massachusetts St Dev Fin Agy Rev Hampshire
College..................................... 5.700 10/01/34 1,046,840
1,000 Massachusetts St Dev Fin Agy Rev MA College
of Pharmacy Ser B (Prerefunded @ 01/01/10)
(a)......................................... 6.750 07/01/30 1,111,300
1,000 Massachusetts St Dev Fin Agy Rev Pharmacy &
Allied Hlth Sciences........................ 5.750 07/01/33 1,044,970
1,000 Massachusetts St Dev Fin Agy Solid Waste
Disp Rev Dominion Energy Brayton Point
(AMT)....................................... 5.000 02/01/36 1,001,120
2,000 Massachusetts St Hlth & Ed Boston College
Ser N....................................... 5.125 06/01/33 2,062,840
1,000 Massachusetts St Hlth & Ed Fac Auth Rev
Brandeis Univ Ser I (MBIA Insd)............. 4.750 10/01/28 1,003,330
1,500 Massachusetts St Hlth & Ed Fac Auth Rev
Hlthcare Sys Covenant Hlth.................. 6.000 07/01/31 1,583,385
1,000 Massachusetts St Hlth & Ed Fac Auth Rev
Saint Mem Med Ctr Ser A..................... 6.000 10/01/23 1,000,690
1,000 Massachusetts St Hlth & Ed Fac Auth Rev
UMass Mem Issue Ser D....................... 5.000 07/01/33 991,850
1,000 Massachusetts St Hlth & Ed Fac Auth Rev Vly
Regl Hlth Sys Ser C Rfdg (Connie Lee
Insd)....................................... 7.000 07/01/10 1,114,020
1,000 Massachusetts St Hlth & Ed New England Med
Ctr Hosp Ser H (FGIC Insd).................. 5.000 05/15/25 1,032,180
</Table>
6 See Notes to Financial Statements
VAN KAMPEN MASSACHUSETTS VALUE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ---------------------------------------------------------------------------------------------
MASSACHUSETTS (CONTINUED)
$1,000 Massachusetts St Hsg Fin Agy Hsg Rev Ser H
(AMT)....................................... 5.000% 12/01/28 $ 989,940
1,000 Massachusetts St Hsg Fin Agy Hsg Rev Single
Family Ser 120 (AMT)........................ 5.000 12/01/35 999,190
1,000 Massachusetts St Hsg Fin Agy Hsg Rev Single
Family Ser 122 (AMT)........................ 4.850 12/01/31 983,680
2,075 Massachusetts St Indl Fin Agy Rev Tufts Univ
Ser H (MBIA Insd)........................... 4.750 02/15/28 2,079,441
1,000 Massachusetts St Indl Fin Agy Rev Whitehead
Inst Biomedical Resh........................ 5.125 07/01/26 1,000,830
930 Massachusetts St Indl Fin Agy Wtr Treatment
Amern Hingham (AMT)......................... 6.900 12/01/29 947,921
930 Massachusetts St Indl Fin Agy Wtr Treatment
Amern Hingham (AMT)......................... 6.950 12/01/35 948,237
4,000 Massachusetts St Tpk Auth Metro Hwy Sys Rev
Cap Apprec Sr Ser C (MBIA Insd)............. * 01/01/22 1,887,280
2,550 Massachusetts St Tpk Auth Metro Hwy Sys Rev
Sub Ser A (AMBAC Insd)...................... 5.000 01/01/39 2,571,701
3,000 Massachusetts St Tpk Auth Rev Ser A Rfdg
(Escrowed to Maturity)...................... 5.000 01/01/13 3,150,210
2,000 Massachusetts St Wtr Pollutn Abatement Tr
Pool Pgm Bds Ser 10......................... 5.000 08/01/21 2,089,960
1,000 Massachusetts St Wtr Pollutn MWRA Pgm Ser
A........................................... 5.000 08/01/32 1,025,020
1,500 Massachusetts St Wtr Res Auth Rols RR II R
526 (Acquired 03/10/06, Cost $1,659,630)
(Inverse Floating Rate) (AMBAC Insd) (b).... 6.079 08/01/31 1,608,225
1,385 Monson, MA (AMBAC Insd) (c)................. 5.250 11/01/19 1,476,396
1,500 Narragansett, MA Regl Sch Dist (AMBAC
Insd)....................................... 5.375 06/01/18 1,594,920
1,000 New Bedford, MA Muni Purp Ln (FGIC Insd).... 5.000 05/01/20 1,040,000
2,500 New England Ed Ln Mktg Corp MA Student Ln
Rev Sub Issue H (Std Lns Gtd) (AMT)......... 6.900 11/01/09 2,593,450
1,000 Pittsfield, MA (MBIA Insd).................. 5.125 04/15/22 1,057,610
2,000 University MA Bldg Auth Proj Sr Ser 1 Rfdg
(Prerefunded @ 11/01/13) (AMBAC Insd)....... 5.250 11/01/21 2,165,080
1,975 Westford, MA (AMBAC Insd)................... 5.250 06/01/19 2,112,835
------------
57,289,967
------------
PUERTO RICO 13.3%
500 Childrens Tr Fd PR Tob Settlement Rev Bds... 5.500 05/15/39 511,715
1,000 Childrens Tr Fd PR Tob Settlement Rev Bds... 5.625 05/15/43 1,027,260
2,000 Puerto Rico Comwlth Hwy & Trans Auth Hwy Rev
Ser Y Rfdg (FSA Insd)....................... 6.250 07/01/21 2,412,540
2,000 Puerto Rico Pub Bldg Auth Rev Gtd Conv Cap
Apprec Ser D (AMBAC Insd) (d)............... 0.000/5.450 07/01/30 1,562,200
------------
5,513,715
------------
</Table>
See Notes to Financial Statements 7
VAN KAMPEN MASSACHUSETTS VALUE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ---------------------------------------------------------------------------------------------
U.S. VIRGIN ISLANDS 5.1%
$1,000 University Virgin Islands Impt Ser A........ 5.375% 06/01/34 $ 1,033,010
1,000 Virgin Islands Pub Fin Auth Rev Gross Rcpt
Taxes Ln Nt Ser A........................... 6.375 10/01/19 1,095,700
------------
2,128,710
------------
TOTAL LONG-TERM INVESTMENTS 156.6%
(Cost $61,455,069).......................................................... 64,932,392
SHORT-TERM INVESTMENTS 1.7%
(Cost $700,000)............................................................. 700,000
------------
TOTAL INVESTMENTS 158.3%
(Cost $62,155,069).......................................................... 65,632,392
OTHER ASSETS IN EXCESS OF LIABILITIES 2.0%................................... 841,912
PREFERRED SHARES (INCLUDING ACCRUED DISTRIBUTIONS) (60.3%)................... (25,017,744)
------------
NET ASSETS APPLICABLE TO COMMON SHARES 100.0%................................ $ 41,456,560
============
</Table>
Percentages are calculated as a percentage of net assets applicable to common
shares.
* Zero coupon bond
(a) All or a portion of this security has been physically segregated in
connection with open futures contracts.
(b) This security is restricted and may be resold only in transactions exempt
from registration which are normally those transactions with qualified
institutional buyers. Restricted securities comprise 3.9% of net assets
applicable to common shares.
(c) The Trust owns 100% of the outstanding bond issuance.
(d) Security is a "step-up" bond where the coupon increases or steps up at a
predetermined date.
ACA--American Capital Access
AMBAC--AMBAC Indemnity Corp.
AMT--Alternative Minimum Tax
Connie Lee--Connie Lee Insurance Co.
FGIC--Financial Guaranty Insurance Co.
FSA--Financial Security Assurance Inc.
MBIA--Municipal Bond Investors Assurance Corp.
Std Lns--Student Loans
8 See Notes to Financial Statements
VAN KAMPEN MASSACHUSETTS VALUE MUNICIPAL INCOME TRUST
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).................. 50 $22,019
== =======
</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, USD-BMA Municipal
N.A.................. Swap Index Receive 4.137% 6/28/26 $870 $25,189
JP Morgan Chase Bank, USD-BMA Municipal
N.A.................. Swap Index Receive 4.375% 7/11/26 770 786
-------
$25,975
=======
</Table>
See Notes to Financial Statements 9
VAN KAMPEN MASSACHUSETTS VALUE MUNICIPAL INCOME TRUST
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
April 30, 2006 (Unaudited)
<Table>
ASSETS:
Total Investments (Cost $62,155,069)........................ $65,632,392
Cash........................................................ 50,202
Interest Receivable......................................... 1,092,961
Swap Contracts.............................................. 25,975
Other....................................................... 3,663
-----------
Total Assets............................................ 66,805,193
-----------
LIABILITIES:
Payables:
Investment Advisory Fee................................... 30,112
Variation Margin on Futures............................... 7,812
Income Distributions--Common Shares....................... 6,600
Other Affiliates.......................................... 5,206
Trustees' Deferred Compensation and Retirement Plans........ 248,248
Accrued Expenses............................................ 32,911
-----------
Total Liabilities....................................... 330,889
Preferred Shares (including accrued distributions).......... 25,017,744
-----------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $41,456,560
===========
NET ASSET VALUE PER COMMON SHARE ($41,456,560 divided by
2,690,767 shares outstanding)............................. $ 15.41
===========
NET ASSETS CONSIST OF:
Common Shares ($.01 par value with an unlimited number of
shares authorized, 2,690,767 shares issued and
outstanding).............................................. $ 26,908
Paid in Surplus............................................. 37,323,991
Net Unrealized Appreciation................................. 3,525,317
Accumulated Undistributed Net Investment Income............. 341,306
Accumulated Net Realized Gain............................... 239,038
-----------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $41,456,560
===========
PREFERRED SHARES ($.01 par value, authorized 100,000,000
shares, 1,000 issued with liquidation preference of
$25,000 per share)........................................ $25,000,000
===========
NET ASSETS INCLUDING PREFERRED SHARES....................... $66,456,560
===========
</Table>
10 See Notes to Financial Statements
VAN KAMPEN MASSACHUSETTS VALUE MUNICIPAL INCOME TRUST
FINANCIAL STATEMENTS continued
Statement of Operations
For the Six Months Ended April 30, 2006 (Unaudited)
<Table>
INVESTMENT INCOME:
Interest.................................................... $1,684,147
----------
EXPENSES:
Investment Advisory Fee..................................... 183,510
Preferred Share Maintenance................................. 43,159
Trustees' Fees and Related Expenses......................... 26,673
Legal....................................................... 13,598
Custody..................................................... 4,638
Other....................................................... 56,605
----------
Total Expenses........................................ 328,183
----------
NET INVESTMENT INCOME....................................... $1,355,964
==========
REALIZED AND UNREALIZED GAIN/LOSS:
Realized Gain/Loss:
Investments............................................... $ 275,233
Futures................................................... (25,303)
----------
Net Realized Gain........................................... 249,930
----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 4,271,733
----------
End of the Period:
Investments............................................. 3,477,323
Swap Contracts.......................................... 25,975
Futures................................................. 22,019
----------
3,525,317
----------
Net Unrealized Depreciation During the Period............... (746,416)
----------
NET REALIZED AND UNREALIZED LOSS............................ $ (496,486)
==========
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS..................... $ (381,164)
==========
NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM
OPERATIONS................................................ $ 478,314
==========
</Table>
See Notes to Financial Statements 11
VAN KAMPEN MASSACHUSETTS VALUE MUNICIPAL INCOME TRUST
FINANCIAL STATEMENTS continued
Statements of Changes in Net Assets (Unaudited)
<Table>
<Caption>
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2006 OCTOBER 31, 2005
------------------------------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income................................... $ 1,355,964 $ 2,776,303
Net Realized Gain....................................... 249,930 605,500
Net Unrealized Depreciation During the Period........... (746,416) (1,617,211)
Distributions to Preferred Shareholders:
Net Investment Income................................. (285,835) (422,334)
Net Realized Gain..................................... (95,329) (29,776)
----------- -----------
Change in Net Assets Applicable to Common Shares from
Operations............................................ 478,314 1,312,482
Distributions to Common Shareholders:
Net Investment Income................................. (1,105,591) (2,516,775)
Net Realized Gain..................................... (536,410) (401,698)
----------- -----------
NET CHANGE IN NET ASSETS APPLICABLE TO COMMON SHARES
FROM INVESTMENT ACTIVITIES............................ (1,163,687) (1,605,991)
FROM CAPITAL TRANSACTIONS:
Value of Common Shares Issued Through Dividend
Reinvestment.......................................... 31,654 94,222
----------- -----------
TOTAL DECREASE IN NET ASSETS APPLICABLE TO COMMON
SHARES................................................ (1,132,033) (1,511,769)
NET ASSETS APPLICABLE TO COMMON SHARES:
Beginning of the Period................................. 42,588,593 44,100,362
----------- -----------
End of the Period (Including accumulated undistributed
net investment income of $341,306 and $376,768,
respectively)......................................... $41,456,560 $42,588,593
=========== ===========
</Table>
12 See Notes to Financial Statements
VAN KAMPEN MASSACHUSETTS VALUE MUNICIPAL INCOME TRUST
FINANCIAL HIGHLIGHTS (UNAUDITED)
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE
TRUST OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, ------------------------------------------------
2006 2005 2004 2003 2002 (f) 2001
-------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF THE
PERIOD................................... $ 15.84 $ 16.44 $ 16.10 $ 16.07 $ 15.95 $ 14.84
------- ------- ------- ------- ------- -------
Net Investment Income.................... .50(a) 1.04 1.05 1.08 1.13 1.09
Net Realized and Unrealized Gain/Loss.... (.17) (.38) .33 .06 .04 1.15
Common Share Equivalent of Distributions
Paid to Preferred Shareholders:
Net Investment Income.................. (.11) (.16) (.07) (.08) (.11) (.28)
Net Realized Gain...................... (.04) (.01) -0- -0- -0- -0-
------- ------- ------- ------- ------- -------
Total from Investment Operations.......... .18 .49 1.31 1.06 1.06 1.96
Distributions Paid to Common Shareholders:
Net Investment Income.................. (.41) (.94) (.97) (1.03) (.94) (.85)
Net Realized Gain...................... (.20) (.15) -0- -0- -0- -0-
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF THE PERIOD........ $ 15.41 $ 15.84 $ 16.44 $ 16.10 $ 16.07 $ 15.95
======= ======= ======= ======= ======= =======
Common Share Market Price at End of the
Period................................... $ 15.20 $ 15.20 $ 16.90 $ 16.24 $ 16.95 $ 15.51
Total Return (b).......................... 3.95%* -3.92% 10.62% 2.09% 15.96% 17.71%
Net Assets Applicable to Common Shares at
End of the Period (In millions).......... $ 41.5 $ 42.6 $ 44.1 $ 43.1 $ 42.9 $ 42.4
Ratio of Expenses to Average Net Assets
Applicable to Common Shares (c).......... 1.57% 1.45% 1.58% 1.61% 1.64% 1.86%
Ratio of Net Investment Income to Average
Net Assets Applicable to Common Shares
(c)...................................... 6.47% 6.35% 6.54% 6.71% 7.16% 7.05%
Portfolio Turnover........................ 17%* 13% 16% 14% 11% 11%
SUPPLEMENTAL RATIOS:
Ratio of Expenses to Average Net Assets
Including Preferred Shares (c)........... .98% .92% 1.00% 1.02% 1.03% 1.16%
Ratio of Net Investment Income to Average
Net Assets Applicable to Common Shares
(d)...................................... 5.10% 5.39% 6.08% 6.21% 6.44% 5.25%
SENIOR SECURITIES:
Total Preferred Shares Outstanding........ 1,000 1,000 1,000 1,000 1,000 1,000
Asset Coverage Per Preferred Share (e).... $66,474 $67,590 $69,108 $68,118 $67,889 $67,436
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 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 $.02, decrease net realized and unrealized gains and losses per
share by $.02 and increase the ratio of net investment income to average net
assets applicable to common shares from 7.02% to 7.16%. 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 13
VAN KAMPEN MASSACHUSETTS VALUE MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2006 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen Massachusetts Value Municipal Income Trust (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 common shareholders with a high level
of current income exempt from federal income taxes and Massachusetts personal
income tax, consistent with preservation of capital. The Trust will invest
substantially all of its assets in Massachusetts municipal securities rated
investment grade at the time of investment. The Trust commenced investment
operations on April 30, 1993.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
A. SECURITY VALUATION Municipal bonds are valued by independent pricing services
or dealers using the mean of the bid and asked prices or, in the absence of
market quotations, at fair value based upon yield data relating to municipal
bonds with similar characteristics and general market conditions. Securities
which are not valued by independent pricing services or dealers are valued at
fair value using procedures established in good faith by the Board of Trustees.
Future contracts are valued at the settlement price established each day on the
exchange on which they are traded. Short-term securities with remaining
maturities of 60 days or less are valued at amortized cost, which approximates
market value.
B. SECURITY TRANSACTIONS Security transactions are recorded on a trade date
basis. Realized gains and losses are determined on an identified cost basis. The
Trust may purchase and sell securities on a "when-issued" or "delayed delivery"
basis with settlement to occur at a later date. The value of the security so
purchased is subject to market fluctuations during this period. The Trust will
segregate assets with 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.
14
VAN KAMPEN MASSACHUSETTS VALUE MUNICIPAL INCOME TRUST
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........................ $61,900,459
===========
Gross tax unrealized appreciation........................... $ 3,933,467
Gross tax unrealized depreciation........................... (201,534)
-----------
Net tax unrealized appreciation on investments.............. $ 3,731,933
===========
</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........................................... $ 71,744
Long-term capital gain.................................... 431,474
Tax-exempt income......................................... 2,866,567
----------
$3,369,785
==========
</Table>
As of October 31, 2005, the components of distributable earnings on a tax
basis were as follows:
<Table>
Undistributed ordinary income............................... $ 4,984
Undistributed long-term capital gain........................ 626,820
Undistributed tax-exempt income............................. 356,130
</Table>
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of the Trust's Investment Advisory Agreement, Van Kampen Asset
Management (the "Adviser") provides investment advice and facilities to the
Trust for an annual fee payable monthly of .55% of the average daily net assets
of the Trust.
For the six months ended April 30, 2006, the Trust recognized expenses of
approximately $1,600 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 $19,100, 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 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
15
VAN KAMPEN MASSACHUSETTS VALUE MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2006 (UNAUDITED) continued
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........................................... 2,688,769 2,683,072
Shares Issued Through Dividend Reinvestment................ 1,998 5,697
--------- ---------
Ending Shares.............................................. 2,690,767 2,688,769
========= =========
</Table>
4. INVESTMENT TRANSACTIONS
During the period, the cost of purchases and proceeds from sales of investments,
excluding short-term investments, were $11,975,125 and $11,535,694,
respectively.
5. PREFERRED SHARES
The Trust has outstanding 1,000 Auction Preferred Shares (APS). Dividends are
cumulative and the dividend rate is currently reset every seven days through an
auction process. The rate in effect on April 30, 2006 was 3.800%. During the six
months ended April 30, 2006, the rates ranged from 2.000% to 5.375%.
The Trust pays annual fees equivalent to .25% of the preferred share
liquidation value for the remarketing efforts associated with the preferred
auctions. These fees are included as a component of "Preferred Share
Maintenance" expense on the Statement of Operations.
The APS are redeemable at the option of the Trust in whole or in part at the
liquidation value of $25,000 per share plus accumulated and unpaid dividends.
The Trust is subject to certain asset coverage tests and the APS are subject to
mandatory redemption if the tests are not met.
6. INDEMNIFICATIONS
The Trust enters into contracts that contain a variety of indemnifications. The
Trust's maximum exposure under these arrangements is unknown. However, the Trust
has not had prior claims or losses pursuant to these contracts and expects the
risk of loss to be remote.
16
VAN KAMPEN MASSACHUSETTS VALUE MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2006 (UNAUDITED) continued
7. DERIVATIVE FINANCIAL INSTRUMENTS
A derivative financial instrument in very general terms refers to a security
whose value is "derived" from the value of an underlying asset, reference rate
or index.
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 the
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 agreement 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.
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 future commission merchant pursuant to 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............................. 15
Futures Opened.............................................. 190
Futures Closed.............................................. (155)
----
Outstanding at April 30, 2006............................... 50
====
</Table>
B. 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.,
17
VAN KAMPEN MASSACHUSETTS VALUE MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2006 (UNAUDITED) continued
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.
C. INDEXED SECURITIES 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.
18
VAN KAMPEN MASSACHUSETTS VALUE MUNICIPAL INCOME TRUST
BOARD OF TRUSTEES, OFFICERS AND IMPORTANT ADDRESSES
BOARD OF TRUSTEES
DAVID C. ARCH
JERRY D. CHOATE
ROD DAMMEYER
LINDA HUTTON HEAGY
R. CRAIG KENNEDY
HOWARD J KERR
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.
19
Van Kampen Massachusetts Value Municipal Income Trust
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 Massachusetts Value Municipal Income Trust
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 Massachusetts Value Municipal Income Trust
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.
VMV SAR 6/06
(VAN KAMPEN INVESTMENTS SHINE LOGO) RN06-01542P-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 Massachusetts Value Municipal Income Trust
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