UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-5845
Van Kampen Senior Loan Fund
(Exact name of registrant as specified in charter)
1221 Avenue of the Americas, New York, New York 10020
(Address of principal executive offices) (Zip code)
Ronald Robison
1221 Avenue of the Americas, New York, New York 10020
(Name and address of agent for service)
Registrant's telephone number, including area code: 212-762-4000
Date of fiscal year end: 7/31___
Date of reporting period: 1/31/07
Item 1. Report to Shareholders.
The Fund's semi-annual report transmitted to shareholders pursuant to Rule 30e-1
under the Investment Company Act of 1940 is as follows:
Welcome, Shareholder
In this report, you'll learn about how your investment in Van Kampen
Senior Loan Fund performed during the 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 fund's
financial statements and a list of fund investments as of January 31,
2007.
THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY A CLASS A, B, C, IB OR
IC SHARE PROSPECTUS FOR THE FUND BEING OFFERED. THE PROSPECTUS CONTAINS
INFORMATION ABOUT THE FUND, INCLUDING THE INVESTMENT OBJECTIVES, RISKS,
CHARGES AND EXPENSES. TO OBTAIN AN ADDITIONAL PROSPECTUS, CONTACT YOUR
FINANCIAL ADVISOR OR DOWNLOAD ONE AT VANKAMPEN.COM. PLEASE READ THE
PROSPECTUS CAREFULLY BEFORE INVESTING.
MARKET FORECASTS PROVIDED IN THIS REPORT MAY NOT NECESSARILY COME TO
PASS. THERE IS NO ASSURANCE THAT A MUTUAL FUND WILL ACHIEVE ITS
INVESTMENT OBJECTIVE. FUND'S ARE SUBJECT TO MARKET RISK, WHICH IS THE
POSSIBILITY THAT THE MARKET VALUES OF SECURITIES OWNED BY THE FUND WILL
DECLINE AND THAT THE VALUE OF THE FUND SHARES MAY THEREFORE BE LESS THAN
WHAT YOU PAID FOR THEM. ACCORDINGLY, YOU CAN LOSE MONEY INVESTING IN THIS
FUND.
AN INVESTMENT IN SENIOR LOANS IS SUBJECT TO CERTAIN RISKS SUCH AS LOAN
DEFAULTS AND ILLIQUIDITY DUE TO INSUFFICIENT COLLATERAL BACKING.
<Table>
<Caption>
---------------------------------------------------------------------------------------
NOT FDIC INSURED OFFER NO BANK GUARANTEE MAY LOSE VALUE
---------------------------------------------------------------------------------------
NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY NOT A DEPOSIT
---------------------------------------------------------------------------------------
</Table>
Performance Summary as of 1/31/07
<Table>
<Caption>
IB SHARES IC SHARES
A SHARES B SHARES C SHARES SINCE SINCE
since 2/18/2005 since 2/18/2005 since 2/18/2005 10/4/1989 6/13/2003
- --------------------------------------------------------------------------------------------------------------------------
W/MAX W/MAX W/MAX
3.25% 3.00% 1.00%
AVERAGE ANNUAL W/O SALES SALES W/O SALES SALES W/O SALES SALES W/O SALES W/O SALES
TOTAL RETURNS CHARGES CHARGE CHARGES CHARGE CHARGES CHARGE CHARGES CHARGES
Since Inception 5.53% 3.73% 4.70% 3.72% 4.70% 4.70% 5.99% 7.68%
10-year -- -- -- -- -- -- 4.74 --
5-year -- -- -- -- -- -- 6.39 --
6-month 4.57 1.19 4.07 1.07 4.07 3.07 4.57 4.45
- --------------------------------------------------------------------------------------------------------------------------
</Table>
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NO GUARANTEE OF
FUTURE RESULTS, AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE FIGURES
SHOWN. FOR THE MOST RECENT MONTH-END PERFORMANCE FIGURES, PLEASE VISIT
VANKAMPEN.COM OR SPEAK WITH YOUR FINANCIAL ADVISOR. INVESTMENT RETURNS AND
PRINCIPAL VALUE WILL FLUCTUATE AND FUND SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THEIR ORIGINAL COST.
The returns shown in this report do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund shares.
Performance of share classes will vary due to differences in sales charges and
expenses. Average annual total return with sales charges includes payment of the
maximum sales charge of 3.25 percent for Class A shares, an contingent deferred
sales charges of 3.00 percent for Class B shares (in year one and declining to
zero after year five), a contingent deferred sales charges of 1.00 percent for
Class C shares in year one, and combined distribution fees and service fees of
up to 0.25 percent for Class A shares and up to 1.00 percent for Class B and C
shares and a service fee of up to 0.15 percent for Class IC shares. Effective
2/18/05, contingent deferred sales charges for Class IB and Class IC shares are
waived. New investments are not available in Class IB and IC shares. Figures
shown above assume reinvestment of all distributions. The fund's adviser has
waived or reimbursed fees and expenses from time to time; absent such
waivers/reimbursements, the fund's returns would have been lower.
1
Fund Report
FOR THE SIX-MONTH PERIOD ENDED JANUARY 31, 2007
MARKET CONDITIONS
Solid economic growth, contained inflation, and falling oil and commodity prices
created a favorable environment for senior loans during the six-month reporting
period. Overall trends in the credit markets remained positive as corporations
exhibited strong cash flows and balance sheets, increased productivity, and
improved credit quality while benefiting from a generally lower cost of capital.
In addition, corporate debt default rates remained low.
The Federal Open Market Committee (the "Fed") finally took a respite from its
two-year long campaign of raising interest rates during the reporting period,
electing to keep its target federal funds rate unchanged at 5.25 percent. The
ease in the Fed's monetary policy, however, had been widely anticipated by the
market and interest rates had already declined in response. As a result,
interest rates across the yield curve remained relatively stable throughout the
period. Yields on senior loans, which adjust in tandem to short-term rates, were
generally unchanged as well.
Yield spreads in the senior loan market climbed to late-2005 levels in the third
quarter of 2006, then leveled off until the last month of the period, when they
narrowed slightly. Demand for senior loans remained quite strong as the market
continues to see increasing activity from institutional investors such as hedge
funds and propriety desks, as well as from crossover investments from
traditional high-yield investors. The strong demand for senior loans was met by
robust supply. A significant increase in merger and acquisition activity,
leveraged buyouts, and second lien loans helped fuel record levels of new
issuance. At the same time, senior loan default rates receded throughout the
period, reaching a record low of just 0.78 percent.
PERFORMANCE ANALYSIS
The fund returned 4.57 percent for the six months ended January 31, 2007 (Class
A shares, unadjusted for sales charges).
TOTAL RETURN FOR THE SIX-MONTH PERIOD ENDED JANUARY 31, 2007
<Table>
<Caption>
- -------------------------------------------------------------
CLASS A CLASS B CLASS C CLASS IB CLASS IC
4.57% 4.07% 4.07% 4.57% 4.45%
- -------------------------------------------------------------
</Table>
The performance for the five share classes varies because each has different
expenses. The fund's total return figures assume the reinvestment of all
distributions, but do not reflect the deduction of any applicable sales charges.
Such costs would lower performance. Past performance is no guarantee of future
results. See Performance Summary for standardized performance information.
2
We continued to follow our research-intensive investment process focused on
identifying companies with strong management, solid and predictable cash flow,
and sufficient collateral in the event of default. We employ a bottom-up asset
selection process driven by analysis of individual company fundamentals. We also
analyze overall sector and industry trends, which led us to favor loans in
sectors that are typically less cyclical in nature, such as food and drug,
cable, and leisure and entertainment. These sectors continued to be represented
in the fund's top holdings. We also favored less cyclical names in the paper and
packaging sector that have experienced steady demand. Throughout the reporting
period, however, the portfolio was invested across a broad range of industries.
We generally avoid investing in companies that we perceive to be vulnerable to
cyclical economic downturns. As such, we remain cautious regarding the auto and
airline industries due to their susceptibility to high fuel prices. In addition,
we have been very selective regarding the health care industry and have
gradually reduced the portfolio's holdings in this sector due to the uncertain
regulatory environment.
The fund benefited during the period from our use of leverage. Leverage involves
borrowing at a floating short-term rate and reinvesting the proceeds at a higher
rate. We used this strategy on an ongoing basis in an effort to enhance the
fund's dividend. Unlike other fixed-income asset classes, using leverage in
conjunction with senior loans does not involve the same degree of risk from
rising short-term interest rates since the income from senior loans adjusts to
changes in interest rates, as do the rates which determine the trust's borrowing
costs. (Similarly, should short-term rates fall, borrowing costs would also
decline.) We might reduce leverage in periods of weaker credit quality
conditions to prevent magnifying erosion of the fund's net asset value.
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 fund in
the future.
3
<Table>
SUMMARY OF INVESTMENTS BY INDUSTRY CLASSIFICATION AS OF 1/31/07
Broadcasting--Cable 10.1%
Healthcare 9.2
Entertainment & Leisure 8.9
Beverage, Food & Tobacco 7.5
Printing & Publishing 7.5
Chemicals, Plastics & Rubber 6.7
Automotive 6.4
Electronics 4.4
Buildings & Real Estate 4.0
Aerospace/Defense 3.7
Hotels, Motels, Inns & Gaming 3.7
Business Equipment & Services 3.7
Utilities 3.2
Ecological 3.2
Paper & Forest Products 3.1
Finance 2.9
Containers, Packaging & Glass 2.7
Health & Beauty 2.4
Construction Material 2.1
Insurance 1.9
Diversified Manufacturing 1.8
Retail--Stores 1.8
Broadcasting--Radio 1.7
Personal & Miscellaneous Services 1.6
Restaurants & Food Service 1.6
Natural Resources 1.4
Telecommunications--Local Exchange Carriers 1.3
Medical Products & Services 1.3
Non-Durable Consumer Products 1.3
Textiles & Leather 1.2
Telecommunications-Wireless 1.2
Home & Office Furnishings, Housewares & Durable Consumer
Products 1.1
Machinery 1.1
Education & Child Care 0.9
Pharmaceuticals 0.8
Retail--Specialty 0.7
Mining, Steel, Iron & Non-Precious Metals 0.6
Farming & Agriculture 0.5
Banking 0.5
Transportation-Rail Manufacturing 0.5
Retail--Office Products 0.4
Grocery 0.4
Telecommunications--Long Distance 0.4
Transportation--Cargo 0.4
Broadcasting--Television 0.2
Telecommunications--Equipment & Services 0.2
Broadcasting--Diversified 0.2
Durable Consumer Products 0.2
Retail--Oil & Gas 0.1
Food Products 0.1
Transportation--Personal 0.1
</Table>
<Table>
(continued on next page)
</Table>
4
<Table>
<Caption>
SUMMARY OF INVESTMENTS BY INDUSTRY CLASSIFICATION AS OF 1/31/07
(continued from previous page)
Tobacco 0.1
-----
Total Long-Term Investments 123.0
Total Short-Term Investments 1.9
-----
Total Investments 124.9
Borrowings (22.6)
Liabilities in Excess of Other Assets (2.3)
-----
Net Assets 100.0%
</Table>
Subject to change daily. Provided for informational purposes only and should not
be deemed as a recommendation to buy or sell the securities mentioned or
securities in the sectors shown above. Summary of investments by industry
classification percentages are as a percentage of net assets. Securities are
classified by sectors that represent broad groupings of related industries. Van
Kampen is a wholly owned subsidiary of a global securities firm which is engaged
in a wide range of financial services including, for example, securities trading
and brokerage activities, investment banking, research and analysis, financing
and financial advisory services.
5
FOR MORE INFORMATION ABOUT PORTFOLIO HOLDINGS
Each Van Kampen fund provides a complete schedule of portfolio holdings
in its semiannual and annual reports within 60 days of the end of the
fund's second and fourth fiscal quarters by filing the schedule
electronically with the Securities and Exchange Commission (SEC). The
semiannual reports are filed on Form N-CSRS and the annual reports are
filed on Form N-CSR. Van Kampen also delivers the semiannual and annual
reports to fund shareholders, and makes these reports available on its
public Web site, www.vankampen.com. In addition to the semiannual and
annual reports that Van Kampen delivers to shareholders and makes
available through the Van Kampen public Web site, each fund files a
complete schedule of portfolio holdings with the SEC for the fund's first
and third fiscal quarters on Form N-Q. Van Kampen does not deliver the
reports for the first and third fiscal quarters to shareholders, nor are
the reports posted to the Van Kampen public Web site. You may, however,
obtain the Form N-Q filings (as well as the Form N-CSR and N-CSRS
filings) by accessing the SEC's Web site, http://www.sec.gov. You may
also review and copy them at the SEC's Public Reference Room in
Washington, DC. Information on the operation of the SEC's Public
Reference Room may be obtained by calling the SEC at (800) SEC-0330. You
can also request copies of these materials, upon payment of a duplicating
fee, by electronic request at the SEC's e-mail address
(publicinfo@sec.gov) or by writing the Public Reference section of the
SEC, Washington, DC 20549-0102.
You may obtain copies of a fund's fiscal quarter filings by contacting
Van Kampen Client Relations at (800) 847-2424.
6
HOUSEHOLDING NOTICE
To reduce fund expenses, the fund attempts to eliminate duplicate
mailings to the same address. The fund delivers a single copy of certain
shareholder documents to investors who share an address, even if the
accounts are registered under different names. The fund's prospectuses
and shareholder reports (including annual privacy notices) will be
delivered to you in this manner indefinitely unless you instruct us
otherwise. You can request multiple copies of these documents by either
calling (800) 341-2911 or writing to Van Kampen Investor Services at 1
Parkview Plaza, P.O. Box 5555, Oakbrook Terrace, IL 60181. Once Investor
Services has received your instructions, we will begin sending individual
copies for each account within 30 days.
PROXY VOTING POLICY AND PROCEDURES AND PROXY VOTING RECORD
You may obtain a copy of the fund's Proxy Voting Policy and Procedures
without charge, upon request, by calling toll free (800) 847-2424 or by
visiting our Web site at www.vankampen.com. It is also available on the
Securities and Exchange Commission's Web site at http://www.sec.gov.
You may obtain information regarding how the fund voted proxies relating
to portfolio securities during the most recent twelve-month period ended
June 30 without charge by visiting our Web site at www.vankampen.com.
This information is also available on the Securities and Exchange
Commission's Web site at http://www.sec.gov.
7
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments of Class A Shares
and contingent deferred sales charges on redemptions of Class B and Class C
Shares; and (2) ongoing costs, including management fees; distribution and
service (12b-1) fees; and other Fund expenses. This example is intended to help
you understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period 8/1/06 - 1/31/07.
ACTUAL EXPENSE
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing cost of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) or contingent deferred sales charges. Therefore, the second line
of the table is useful in comparing ongoing costs only, and will not help you
determine the relative total costs of owning different funds. In addition, if
these transactional costs were included, your cost would have been higher.
<Table>
<Caption>
BEGINNING ENDING
ACCOUNT ACCOUNT EXPENSES PAID
VALUE VALUE DURING PERIOD*
----------------------------------------
8/1/06 1/31/07 8/1/06-1/31/07
Class A
Actual............................................ $1,000.00 $1,045.71 $13.41
Hypothetical...................................... 1,000.00 1,012.11 13.19
(5% annual return before expenses)
Class B
Actual............................................ 1,000.00 1,040.70 17.23
Hypothetical...................................... 1,000.00 1,008.31 16.96
(5% annual return before expenses)
Class C
Actual............................................ 1,000.00 1,040.70 17.23
Hypothetical...................................... 1,000.00 1,008.31 16.96
(5% annual return before expenses)
Class IB
Actual............................................ 1,000.00 1,045.65 13.35
Hypothetical...................................... 1,000.00 1,012.21 13.14
(5% annual return before expenses)
Class IC
Actual............................................ 1,000.00 1,044.51 13.35
Hypothetical...................................... 1,000.00 1,012.21 13.14
(5% annual return before expenses)
</Table>
* Expenses are equal to the Fund's annualized expense ratio of 2.60%, 3.35%,
3.35%, 2.59% and 2.59% for Class A, B, C, IB and IC Shares, respectively,
multiplied by the average account value over the period, multiplied by
184/365 (to reflect the one-half year period). These expense ratios reflect
an expense waiver.
Assumes all dividends and distributions were reinvested.
8
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED)
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- ------------------------------------------------------------------------------------------------------------------
VARIABLE RATE** SENIOR LOAN INTERESTS 121.3%
AEROSPACE/DEFENSE 3.7%
$ 259 Alion Science and Technology
Corp., Revolving Credit
Agreement...................... Ba3 B+ 10.00% 08/02/09 $ 252,281
32,965 Alion Science and Technology
Corp., Term Loan............... B3 B+ 8.36 to 10.86 12/31/07 to 08/02/09 33,006,044
1,800 Apptis, Inc., Term Loan........ Ba3 B+ 8.57 12/20/12 1,813,500
633 ARINC, Inc., Term Loan......... Ba3 BB 7.37 03/10/11 636,097
995 Atlantic Marine Services,
Term Loan...................... B1 B+ 7.88 08/02/13 1,004,950
1,383 DynCorp International, LLC,
Term Loan...................... Ba2 BB- 7.63 to 7.69 02/11/11 1,394,458
12,304 IAP Worldwide Services, Inc.,
Term Loan...................... B1 B 9.69 to 15.19 12/30/12 12,341,232
3,582 ILC Industries, Inc., Term
Loan........................... NR NR 7.86 02/24/12 3,614,836
4,004 K&F Industries, Inc.,
Term Loan...................... Ba3 B+ 7.32 11/18/12 4,023,350
1,411 Primus International, Inc.,
Term Loan...................... NR NR 7.82 06/07/12 1,419,756
2,883 SI International, Inc.,
Term Loan...................... Ba3 NR 7.35 to 7.46 02/09/11 2,887,055
3,575 Wesco Aircraft Hardware Corp.,
Term Loan...................... Ba3 B+ 7.57 to 11.07 09/29/13 to 03/28/14 3,613,373
6,448 Wyle Laboratories, Inc., Term
Loan........................... NR B+ 8.12 to 11.87 01/28/11 to 07/28/11 6,504,053
--------------
72,510,985
--------------
</Table>
See Notes to Financial Statements 9
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- ----------------------------------------------------------------------------------------------------------------
AUTOMOTIVE 6.1%
$ 1,995 Acument Global Technologies,
Inc., Term Loan (a).......... B2 B+ 8.92% 08/11/13 $ 2,009,963
3,253 Accuride Corp.,
Term Loan (a)................ Ba3 B+ 7.38 01/31/12 3,266,381
952 Affinia Group, Inc., Term
Loan (a)..................... Ba3 B 8.36 11/30/11 958,577
400 Dana Corp., Term Loan........ B3 BB- 7.55 04/13/08 400,753
8,855 Federal-Mogul Corp.,
Revolving Credit Agreement
(b).......................... NR NR 9.07 07/01/07 8,887,978
20,735 Federal-Mogul Corp., Term
Loan (b)..................... NR NR 9.07 07/01/07 20,847,242
15,750 Ford Motor Co., Term Loan.... Ba3 B 8.36 12/15/13 15,974,217
2,272 Heartland Automotive
Holdings, Inc., Term Loan.... NR NR 9.11 to 9.12 02/27/12 2,277,648
10,728 MetoKote Corp., Term Loan.... B2 B+ 8.32 to 8.37 11/27/11 10,728,126
1,820 Navistar International Corp.,
Revolving Credit Agreement... NR BB- 5.22 to 8.61 01/19/12 1,854,695
5,005 Navistar International Corp.,
Term Loan.................... NR BB- 8.61 01/19/12 5,100,410
11,500 Oshkosh Truck Corp., Term
Loan......................... Ba3 BB 7.35 12/06/13 11,574,439
4,069 Polypore, Inc., Term Loan.... Ba3 B 8.32 11/12/11 4,099,788
1,496 Precision Partners, Inc.,
Term Loan.................... B2 B+ 8.37 10/27/13 1,470,066
7,451 Sensata Technologies, Inc.,
Term Loan.................... B1 BB- 7.09 to 7.11 04/27/13 7,438,097
3,574 Tenneco Automotive, Inc.,
Term Loan.................... Ba1 BB- 7.36% 12/12/10 3,602,108
15,447 TRW Automotive, Inc., Term
Loan......................... Ba1 BB+ 6.75 to 6.94 01/10/10 to 06/30/12 15,451,969
2,780 United Components, Inc., Term
Loan......................... Ba3 B+ 7.63 06/30/12 2,794,065
--------------
118,736,522
--------------
BANKING 0.5%
8,980 Dollar Financial Corp., Term
Loan......................... B3 BB- 8.05 to 8.30 10/30/12 9,023,248
--------------
BEVERAGE, FOOD & TOBACCO 7.5%
14,925 Acosta Sales Co., Inc., Term
Loan (a)..................... NR NR 8.07 07/28/13 15,086,682
4,764 Advantage Sales & Marketing,
LLC, Term Loan (a)........... NR NR 7.37 to 7.46 03/29/13 4,779,921
6,094 Birds Eye Foods, Inc., Term
Loan......................... Ba3 B+ 8.10 06/30/08 6,108,873
11,620 Coleman Natural Foods, LLC,
Term Loan.................... NR NR 9.87 to 13.87 08/22/12 to 08/22/13 11,364,154
</Table>
10 See Notes to Financial Statements
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- ----------------------------------------------------------------------------------------------------------------
BEVERAGE, FOOD & TOBACCO (CONTINUED)
$ 4,243 Commonwealth Brands, Inc.,
Term Loan.................... NR NR 7.63% 12/22/12 $ 4,298,037
4,988 DCI Cheese Co., Term Loan.... NR NR 8.61 08/07/13 4,993,734
32,105 Dole Food Co., Inc.,
Term Loan.................... Ba3 B 5.23 to 9.25 04/12/13 32,059,143
7,650 DS Waters of America, Inc.,
Term Loan.................... B1 CCC+ 7.86 to 7.87 10/25/12 7,688,250
3,374 Farley's & Sathers Candy Co.,
Inc., Term Loan.............. NR NR 8.11 to 11.36 06/15/10 to 03/24/11 3,384,435
5,575 Fresh Start Bakeries, Inc.,
Term Loan.................... NR NR 7.88 to 11.13 09/29/13 to 03/29/14 5,625,656
3,062 Le-Nature's, Inc.,
Term Loan (b) (c) (d)........ NR NR 9.39 to 11.25 03/01/11 1,483,451
5,810 Luigino's, Inc., Term Loan... B1 B+ 8.38 04/02/11 5,846,729
943 Mafco Worldwide Corp., Term
Loan......................... B1 B+ 7.36 12/08/11 944,859
5,118 National Dairy Holdings, LP,
Term Loan.................... NR NR 7.32 03/15/12 5,127,996
2,640 National Distributing Co.,
Inc., Term Loan.............. NR NR 11.82 06/22/10 2,646,600
1,654 OSI Foods GMBH & Co. KG, Term
Loan......................... NR NR 7.36 09/02/11 1,654,549
6,461 OSI Group, LLC, Term Loan.... NR NR 7.35 to 7.36 09/02/11 6,465,285
6,703 PBM Products, LLC,
Term Loan.................... NR NR 8.07 09/29/12 6,752,847
10,065 Pierre Foods, Inc.,
Term Loan.................... Ba3 B+ 7.61 06/30/10 10,131,392
3,256 Pinnacle Foods, Inc., Term
Loan......................... Ba3 B+ 7.36 11/25/10 3,272,051
750 Reddy Ice Group, Inc., Term
Loan......................... Ba3 B+ 7.11 08/09/12 750,938
2,508 Sunny Delight Beverages Co.,
Term Loan.................... Caa1 CCC 11.35 to 11.38 08/20/10 2,453,222
374 Volume Services America,
Inc., Revolving Credit
Agreement.................... B2 NR 9.75 04/01/10 367,866
3,930 Volume Services America,
Inc., Term Loan.............. B2 NR 8.61 to 9.50 10/01/10 3,944,738
--------------
147,231,408
--------------
BROADCASTING--CABLE 10.1%
8,700 Century Cable Holdings, LLC,
Term Loan (b)................ NR NR 10.25 06/30/09 8,512,019
4,400 Cequel Communications, LLC,
Term Loan.................... B1 B+ 7.61 11/05/13 4,431,627
48,431 Charter Communications
Operating, LLC, Term Loan.... B1 B 7.99 04/28/13 48,916,580
</Table>
See Notes to Financial Statements 11
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- ----------------------------------------------------------------------------------------------------------------
BROADCASTING--CABLE (CONTINUED)
$29,163 CSC Holdings, Inc.,
Term Loan.................... Ba2 BB 7.11 to 7.12% 03/29/13 $ 29,272,709
927 Frontiervision Operating
Partners, LP, Revolving
Credit Agreement (b) (e)..... NR NR 9.65 06/30/06 917,826
12,904 Frontiervision Operating
Partners, LP,
Term Loan (b) (e)............ NR NR 9.65 to 9.78 09/30/05 to 03/31/06 12,768,837
18,340 Hilton Head Communications,
LP, Revolving Credit
Agreement (b)................ NR NR 8.25 09/30/07 17,835,650
12,959 Hilton Head Communications,
LP, Term Loan (b)............ NR NR 9.50 03/31/08 12,651,466
1,984 Knology, Inc. ............... Ba3 B 7.85 06/29/10 2,001,339
7,572 MCC Iowa, LLC, Term Loan..... Ba3 BB- 7.10 to 7.37 01/31/15 7,570,800
1,600 Mediacom Illinois, LLC, Term
Loan......................... Ba3 BB- 7.12 to 7.27 01/31/15 1,603,429
52,655 Olympus Cable Holdings, LLC,
Term Loan (b)................ NR NR 9.50 to 10.25 06/30/10 to 09/30/10 51,420,349
--------------
197,902,631
--------------
BROADCASTING--DIVERSIFIED 0.2%
3,980 Cumulus Media, Inc., Term
Loan......................... Ba3 B 7.32 to 7.37 06/07/13 4,005,289
--------------
BROADCASTING--RADIO 1.7%
3,935 CMP KC, LLC, Term Loan....... Caa1 CCC+ 9.38 05/03/11 3,939,670
11,553 CMP Susquehanna Corp., Term
Loan......................... Ba3 B 7.38 to 7.44 05/05/13 11,640,092
3,250 Emmis Operating Co., Term
Loan......................... B1 B 7.32 11/01/13 3,275,136
1,189 LBI Media, Inc., Term Loan... Ba2 B 6.82 to 6.88 03/31/12 1,180,916
4,275 Multicultural Radio
Broadcasting, Inc.,
Term Loan.................... B2 B 8.10 to 11.11 12/18/12 to 06/18/13 4,289,906
3,770 NextMedia Operating, Inc.,
Term Loan.................... B1 B 7.32 to 9.82 11/15/12 to 11/15/13 3,784,424
2,250 Regent Broadcasting, LLC Term
Loan......................... B1 B 7.87 11/21/13 2,266,875
3,421 Spanish Broadcasting System,
Inc., Term Loan.............. B1 B 7.12 07/11/12 3,428,605
--------------
33,805,624
--------------
</Table>
12 See Notes to Financial Statements
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- ----------------------------------------------------------------------------------------------------------------
BROADCASTING--TELEVISION 0.2%
$ 1,995 Barrington Broadcasting, LLC,
Term Loan.................... Ba3 B 7.57% 08/12/13 $ 2,009,340
2,758 HIT Entertainment, Inc., Term
Loan......................... Ba3 B 7.60 03/20/12 2,782,996
--------------
4,792,336
--------------
BUILDINGS & REAL ESTATE 4.0%
3,333 BioMed Realty, LP,
Term Loan.................... NR NR 7.58 05/30/10 3,325,000
2,500 California Coastal
Communities, Inc.,
Term Loan.................... NR NR 8.10 09/15/11 2,503,125
672 Central Parking Corp., Term
Loan......................... Baa3 BB- 7.36 03/31/10 673,721
5,172 Edge-Star Partners,
Term Loan.................... NR NR 9.38 to 15.38 11/18/07 5,168,414
13,966 Ginn LA CS Borrower, LLC,
Term Loan.................... B1 BB 8.36 to 12.36 06/08/11 to 06/08/12 13,192,148
2,800 Kyle Acquisition Group, LLC,
Term Loan.................... NR NR 8.88 07/20/10 2,830,626
2,745 Lake at Las Vegas Joint
Venture, LLC, Term Loan...... B3 CCC+ 10.00 to 10.12 11/01/09 2,695,163
10,000 Landsource Communities
Development, LLC,
Term Loan.................... NR NR 7.88 03/31/10 9,993,750
3,200 LNR Property Corp., Term
Loan......................... B2 B+ 8.12% 07/12/11 3,222,285
1,588 London Arena & Waterfront
Finance, LLC, Term Loan...... NR NR 8.85 03/08/12 1,601,895
1,619 NewKirk Master, LP, Term
Loan......................... Ba2 NR 7.08 to 8.75 08/11/08 1,621,948
3,047 NLV Holdings, LLC,
Term Loan.................... Caa1 B+ 8.11 to 12.36 05/09/11 to 05/30/12 3,041,089
2,394 Shea Capital I, LLC,
Term Loan.................... NR NR 7.37 10/27/11 2,389,511
2,481 Shea Mountain House, LLC,
Term Loan.................... NR NR 7.36 05/11/11 2,478,148
3,500 South Edge, LLC,
Term Loan.................... NR NR 7.13 to 7.38 10/31/07 to 10/31/09 3,492,345
1,600 Standard Pacific Corp., Term
Loan......................... NR NR 6.87 05/05/13 1,591,000
3,982 Tamarack Resort, LLC, Term
Loan......................... NR NR 8.61 05/19/11 3,917,293
8,000 WCI Communities, Inc, Term
Loan......................... NR NR 7.32 12/23/10 7,902,000
</Table>
See Notes to Financial Statements 13
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- ----------------------------------------------------------------------------------------------------------------
BUILDINGS & REAL ESTATE (CONTINUED)
$ 6,880 Yellowstone Development, LLC,
Term Loan.................... NR NR 7.70% 09/30/10 $ 6,848,068
--------------
78,487,529
--------------
BUSINESS EQUIPMENT & SERVICES 3.7%
12,781 Affiliated Computer Services,
Inc., Term Loan (a).......... Ba2 B+ 7.35 to 7.88 03/20/13 12,877,051
9,850 AlixPartners, LLP, Term Loan
(a).......................... B1 BB- 7.86 10/12/13 9,970,052
1,990 Contec, LLC, Term Loan....... NR NR 8.63 06/15/12 1,994,975
4,274 Crawford & Co., Term Loan.... B1 BB- 7.86 10/30/13 4,297,175
4,489 First American Payment
Systems, LP, Term Loan....... NR NR 8.63 10/06/13 4,516,805
1,386 InfoUSA, Inc., Term Loan..... Ba2 BB 7.12 02/14/12 1,387,732
4,092 Katun Corp., Term Loan....... NR BB- 9.57 to 9.59 06/30/09 4,092,011
6,750 NCO Financial Systems, Term
Loan......................... Ba3 B+ 8.38 05/15/13 6,809,062
185 ProQuest Co., Revolving
Credit Agreement............. NR NR 9.07 01/31/10 184,210
9,107 Sedgwick Claims Management
Services, Inc., Term Loan.... B1 B+ 7.61 01/31/13 9,128,126
2,250 Verifone, Inc., Term Loan.... B1 BB- 7.10 to 7.12 10/31/13 2,258,437
14,713 VNU, Inc., Term Loan......... B1 B+ 7.61 08/09/13 14,846,882
--------------
72,362,518
--------------
CHEMICALS, PLASTICS & RUBBER 6.6%
1,098 American Pacific Corp., Term
Loan......................... Ba2 B 9.37 11/30/10 1,099,826
2,600 Basell North America
(Netherlands), Term Loan..... Ba3 B+ 7.60 to 8.35 09/07/13 to 09/07/14 2,630,875
1,471 Becker-Underwood, Inc., Term
Loan......................... NR NR 5.36 03/31/10 to 09/30/11 1,469,947
7,600 Brenntag Holdings GmbH & Co.
KG, Term Loan................ B2 B 7.89 to 11.89 01/20/14 to 07/17/15 7,702,120
3,205 Celanese, AG (Germany), Term
Loan......................... Ba3 BB- 7.11 04/06/11 3,226,840
10,167 Ferro Corp., Term Loan....... NR B+ 8.07 06/06/12 10,153,958
3,046 Fibervisions Delaware Corp.,
Term Loan.................... B1 B 8.86 03/31/13 2,863,565
4,863 Georgia Gulf Corp.,
Term Loan.................... Ba2 BB 7.32 10/03/13 4,901,020
17,420 Hexion Specialty Chemicals,
Inc., Term Loan.............. Ba3 B 7.88 05/05/13 17,513,632
25,781 Huntsman International, LLC,
Term Loan.................... Ba3 BB- 7.07 08/16/12 25,952,086
5,940 Ineos Holdings, Ltd., Term
Loan......................... Ba3 B+ 7.61 to 8.11 12/16/13 to 12/23/14 6,016,727
</Table>
14 See Notes to Financial Statements
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- ----------------------------------------------------------------------------------------------------------------
CHEMICALS, PLASTICS & RUBBER (CONTINUED)
$ 5,555 INVISTA (Netherlands), Term
Loan......................... Ba1 BB 6.86 to 6.88% 04/30/10 to 04/29/11 $ 5,564,244
6,749 ISP Chemco, Inc.,
Term Loan.................... Ba3 BB- 7.38 02/16/13 6,807,527
9,925 Kraton Polymers, LLC, Term
Loan......................... Ba3 B+ 7.38 05/12/13 10,011,844
3,315 Lucite International Group
Holdings, Ltd., Term Loan.... B1 B+ 8.07 07/07/13 3,351,665
875 Nusil Technology, LLC, Term
Loan......................... NR NR 8.07 10/24/13 881,361
6,578 PQ Corp., Term Loan.......... Ba2 B+ 7.37 02/10/12 6,612,298
8,614 Rockwood Specialties Group,
Inc., Term Loan.............. Ba2 NR 7.36 12/13/13 8,679,009
4,550 Wellman, Inc., Term Loan..... Caa1 CCC 12.12 02/10/10 4,083,250
--------------
129,521,794
--------------
CONSTRUCTION MATERIAL 1.8%
7,920 AXIA, Inc., Term Loan........ B2 B 8.62 12/21/12 7,722,000
3,591 Beacon Sales Acquisition,
Inc., Term Loan.............. NR NR 7.36 09/30/13 3,608,955
1,921 Brand Services, Inc., Term
Loan......................... Ba3 B 9.50 01/15/12 1,924,363
541 Builders FirstSource, Inc.,
Term Loan.................... Ba2 BB- 7.86 08/11/11 541,522
4,040 Building Materials Holdings
Corp., Term Loan............. Ba2 BB 7.86 11/10/13 4,100,473
4,955 Contech Construction
Products, Inc., Term Loan.... Ba3 B+ 7.32 to 7.35 01/31/13 4,990,879
1,500 Custom Building Products,
Inc., Term Loan.............. NR NR 10.36 04/29/12 1,492,188
1,250 Foster Wheeler, LLC, Term
Loan......................... Ba1 B+ 5.26 09/13/11 1,257,813
1,789 Nortek, Inc., Term Loan...... Ba2 B 7.35 to 9.25 08/27/11 1,793,962
2,234 Panolam Industries
International, Inc. (Canada),
Term Loan.................... Ba3 B+ 8.11 09/30/12 2,240,672
1,592 Pro-Build Holdings, Inc.,
Term Loan.................... Ba3 NR 7.11 06/29/13 1,592,010
3,783 Professional Paint, Inc.,
Term Loan.................... NR NR 7.63 to 11.13 05/31/12 to 05/31/13 3,792,843
658 Werner Holdings Co., Inc.,
Term Loan (b) (d)............ NR NR 6.00 to 17.25 06/11/09 0
--------------
35,057,680
--------------
</Table>
See Notes to Financial Statements 15
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- ----------------------------------------------------------------------------------------------------------------
CONTAINERS, PACKAGING & GLASS 2.7%
$ 1,592 Altivity Packaging LLC, Term
Loan (a)..................... Ba3 BB- 7.58 to 7.61% 06/30/13 $ 1,611,303
2,682 Anchor Glass Container Corp.,
Term Loan.................... NR NR 7.61 to 7.62 05/03/13 2,688,587
964 Captive Plastics, Inc., Term
Loan......................... NR NR 8.11 08/18/11 969,840
1,170 Consolidated Container Corp.,
LLC, Term Loan............... Ba3 B- 8.63 12/15/08 1,175,850
3,190 Covalence Specialty Materials
Corp., Term Loan............. Ba3 B+ 7.38 to 8.63 05/18/13 to 08/16/13 3,183,280
1,188 Crown Americas, Inc., Term
Loan......................... Baa3 BB- 7.12 11/15/12 1,192,010
100 Fleming Packaging Corp.,
Revolving Credit Agreement
(b) (c) (d).................. NR NR 8.75 03/31/03 1,000
871 Fleming Packaging Corp., Term
Loan (b) (c) (d)............. NR NR 12.25 08/31/04 8,711
3,884 Graham Packaging Co., Term
Loan......................... B2 B 7.63 to 9.63 10/07/11 to 04/07/12 3,925,100
738 Graphic Packaging
International Corp.,
Revolving Credit Agreement... Ba2 B+ 8.36 08/08/09 724,615
5,740 Graphic Packaging
International Corp.,
Term Loan.................... Ba2 B+ 7.82 to 7.87 08/08/10 5,812,158
777 Kranson Industries, Inc.,
Revolving Credit Agreement... NR NR 8.07 to 10.00 07/31/13 773,545
9,975 Kranson Industries, Inc.,
Term Loan.................... NR NR 8.11 07/31/13 10,031,109
5,975 Packaging Dynamics, Term
Loan......................... NR BB- 7.36 06/09/13 5,982,469
2,527 Ranpak Corp., Term Loan...... NR NR 7.86 12/14/11 2,535,248
961 Smurfit-Stone Container
Corp., Revolving Credit
Agreement.................... Ba1 B+ 2.50 to 9.75 11/01/09 951,390
4,342 Smurfit-Stone Container
Corp., Term Loan............. Ba1 B+ 7.63 11/01/11 4,385,593
1,750 Solo Cup, Inc., Term Loan.... Caa1 CCC- 11.57 03/31/12 1,792,656
3,970 Unifrax Corp., Term Loan..... Ba3 B 7.63 05/02/13 3,986,130
--------------
51,730,594
--------------
DIVERSIFIED MANUFACTURING 1.8%
1,525 Arnold Magnectic Technologies
Corp., Term Loan............. NR NR 9.09 to 11.50 03/06/11 to 03/06/12 1,517,532
6,350 Babcock & Wilcox Co., Term
Loan......................... Ba2 B+ 8.32 02/22/12 6,389,688
</Table>
16 See Notes to Financial Statements
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- ----------------------------------------------------------------------------------------------------------------
DIVERSIFIED MANUFACTURING (CONTINUED)
$ 1,682 Chart Industries, Inc., Term
Loan......................... Ba2 B+ 7.38 to 7.44% 10/17/12 $ 1,689,849
3,500 Euramax International, Inc.,
Term Loan.................... B1 B 12.36 06/29/13 3,447,546
6,484 MW Industries, Inc.,
Term Loan.................... NR NR 8.37 11/01/13 6,516,169
9,350 Mueller Group, Inc.,
Term Loan.................... B1 BB- 7.36 to 7.37 10/03/12 9,422,105
6,726 X-Rite, Inc., Term Loan...... Ba3 B+ 7.63 to 10.37 06/30/12 to 06/30/13 6,736,250
--------------
35,719,139
--------------
DURABLE CONSUMER PRODUCTS 0.2%
3,367 Brown Jordan International,
Inc., Term Loan.............. NR NR 9.38 to 11.25 04/30/12 3,387,603
--------------
ECOLOGICAL 3.2%
22,891 Allied Waste North America,
Inc., Term Loan (a).......... Ba3 BB 7.06 to 7.21 01/15/12 23,014,518
2,500 Casella Waste Systems, Inc.,
Term Loan.................... NR NR 7.37 04/28/10 2,506,250
10,278 Energy Solutions, LLC, Term
Loan......................... B2 BB 7.57 to 7.63 06/07/11 to 06/07/13 10,370,775
5,104 Environmental Systems
Products Holdings,
Term Loan.................... B3 NR 8.82 to 15.37 12/12/08 to 12/12/10 5,129,896
2,574 LVI Services, Inc.,
Term Loan.................... NR NR 10.36 11/16/11 2,419,560
4,600 Synagro Technologies, Inc.,
Term Loan.................... NR B+ 7.63 06/21/12 4,608,625
2,000 WasteQuip, Inc., Term Loan... B1 NR 12.50 07/15/12 2,020,000
311 Waste Services, Inc.,
Revolving Credit Agreement... Ba3 B 10.75 04/29/09 306,445
11,064 Waste Services, Inc., Term
Loan......................... Ba3 B 8.08 03/31/11 11,105,716
--------------
61,481,785
--------------
EDUCATION & CHILD CARE 0.9%
8,437 Educate Operating Co., LLC,
Term Loan.................... Ba3 NR 9.36 03/31/12 8,310,321
9,810 Education Management Corp.,
Term Loan.................... B2 B 7.88 06/01/13 9,910,456
--------------
18,220,777
--------------
ELECTRONICS 4.4%
3,682 Amkor Technology, Inc., Term
Loan......................... B1 B- 9.87 10/27/10 3,816,819
3,673 Audio Visual Services Corp.,
Term Loan.................... Ba3 NR 7.82 05/18/11 3,686,543
</Table>
See Notes to Financial Statements 17
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- ----------------------------------------------------------------------------------------------------------------
ELECTRONICS (CONTINUED)
$ 325 Blackboard, Inc., Term
Loan......................... Ba3 B+ 7.57% 02/28/12 $ 327,773
13,024 Dealer Computer Services,
Inc., Term Loan.............. Ba2 BB- 7.85 to 10.85 10/26/12 to 10/26/13 13,173,574
1,500 Deutsche Connector Group,
Term Loan.................... NR NR 7.83 to 8.08 06/22/14 to 06/22/15 1,518,047
2,137 DoubleClick, Inc.,
Term Loan.................... Ba3 B 9.38 to 9.48 07/13/12 2,139,621
539 Eastman Kodak Co.,
Term Loan.................... Ba3 B+ 7.57 10/18/12 540,738
1,985 Epicor Software Corp., Term
Loan......................... Ba3 B+ 7.81 to 9.15 03/30/12 1,993,684
1,000 GXS Worldwide, Inc., Term
Loan......................... Ba3 B+ 10.36 to 10.38 07/29/11 1,015,000
4,988 Infor Enterprise Solutions
Holdings, Inc., Term Loan.... B1 B 9.12 07/28/12 5,035,202
1,545 ON Semiconductor Corp., Term
Loan......................... B3 B+ 7.61 12/15/11 1,549,287
4,838 Open Text Corp., Term Loan... Ba3 BB- 7.86 10/02/13 4,868,112
15,860 Spectrum Brands, Inc., Term
Loan......................... B1 B- 8.57 to 8.63 02/06/12 15,938,145
398 Stratus Technologies, Inc.,
Term Loan.................... B1 B- 8.36 to 8.37 03/29/11 397,503
11 Sungard Data Systems, Inc.,
Revolving Credit Agreement... Ba3 B+ 9.75 08/11/11 10,512
18,180 Sungard Data Systems, Inc.,
Term Loan.................... Ba3 B+ 7.88 02/11/13 18,370,797
10,573 UGS Corp., Term Loan......... Ba2 B+ 7.07 to 7.11 03/31/12 10,599,019
--------------
84,980,376
--------------
ENTERTAINMENT & LEISURE 8.9%
1,965 Alliance Atlantis
Communications, Inc., Term
Loan (a)..................... Ba1 BB 6.86 12/20/11 1,966,228
1,980 AMC Entertainment, Inc., Term
Loan (a)..................... Ba1 B+ 7.45 01/26/13 2,000,471
5,546 Bombardier Capital, Inc.,
Term Loan.................... B1 B+ 7.86 to 9.75 06/28/13 5,582,542
23,734 Cedar Fair, LP, Term Loan.... Ba3 BB- 7.82 to 9.75 08/30/12 23,985,605
5,486 Cinemark USA, Inc.,
Term Loan.................... Ba2 B 7.38 10/05/13 5,547,115
9,937 Fender Musical Instruments
Corp., Term Loan............. Caa1 B- 8.08 to 11.33 03/30/12 to 09/30/12 10,029,686
1,154 Metro-Goldwyn-Mayer Studios,
Inc., Revolving Credit
Agreement.................... NR NR 8.61 04/08/10 1,105,769
</Table>
18 See Notes to Financial Statements
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- ----------------------------------------------------------------------------------------------------------------
ENTERTAINMENT & LEISURE (CONTINUED)
$54,800 Metro-Goldwyn-Mayer Studios,
Inc., Term Loan.............. NR NR 8.61% 04/08/12 $ 54,981,982
1,983 Mets, LP, Term Loan.......... NR NR 7.44 07/25/10 1,987,814
281 Movie Gallery, Inc., Term
Loan (f)..................... B3 CCC+ 10.37 04/27/10 279,200
5,157 Panavision, Inc., Term
Loan......................... Ba3 B 8.36 to 8.37 03/30/11 5,202,143
8,820 Pure Fishing, Inc.,
Term Loan.................... Ba3 B 8.61 to 11.38 09/30/10 to 03/31/11 8,786,188
22,690 Regal Cinemas, Inc., Term
Loan......................... Ba2 BB- 7.11 11/10/10 22,750,700
1,117 Six Flags Theme Parks, Inc.,
Revolving Credit Agreement... Ba3 B- 8.57 to 8.62 06/30/08 1,112,104
6,326 Six Flags Theme Parks, Inc.,
Term Loan.................... Ba3 B- 8.61 to 8.62 06/30/09 6,404,739
4,000 Southwest Sports Group, LLC,
Term Loan.................... NR NR 7.88 12/22/10 4,001,252
2,720 Tigers Ballpark, LLC, Term
Loan......................... NR NR 7.13 08/15/10 2,720,000
8,773 True Temper Sports, Inc.,
Term Loan.................... Ba3 B 7.85 to 10.86 03/15/11 to 06/30/11 8,815,259
7,172 Universal City Development
Partners, LP, Term Loan...... Ba1 BB- 7.36 to 7.38 06/09/11 7,208,134
--------------
174,466,931
--------------
FARMING & AGRICULTURE 0.5%
1,350 Mosaic Co., Term Loan........ Ba1 BB 7.10 to 7.13 11/25/13 1,362,937
971 Nutro Products, Inc., Term
Loan......................... Ba3 B 7.36 04/26/13 977,900
6,950 Wm. Bolthouse Farms, Inc.,
Term Loan.................... B1 B- 7.63 to 10.86 12/16/12 to 12/16/13 6,997,790
--------------
9,338,627
--------------
FINANCE 2.9%
3,121 DCS Business Services, Inc.,
Term Loan.................... NR NR 9.57 to 11.32 02/04/11 to 08/04/11 3,113,211
6,300 Grosvenor Capital Management
Holdings, LLP, Term Loan..... NR NR 7.63 12/05/13 6,335,437
4,626 iPayment, Inc., Term Loan.... B1 B 7.32 to 7.36 05/10/13 4,617,672
7,233 LPL Holdings, Inc.,
Term Loan.................... B2 B 8.11 06/28/13 7,321,778
2,025 Munder Capital Management,
Term Loan.................... Ba2 BB+ 7.36 12/29/12 2,035,125
2,925 National Processing, Co.,
Term Loan.................... Ba3 B+ 11.86 05/03/13 2,943,281
8,010 Outsourcing Solutions, Inc.,
Term Loan.................... NR NR 10.82 09/30/10 7,890,006
</Table>
See Notes to Financial Statements 19
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- ----------------------------------------------------------------------------------------------------------------
FINANCE (CONTINUED)
$ 9,900 Oxford Acquisition III, Ltd.,
Term Loan.................... Ba2 BB+ 7.75% 10/20/14 $ 9,994,357
4,200 Riskmetrics Group Holdings,
LLC, Term Loan............... Ba3 B+ 7.57 to 10.82 01/11/14 to 07/11/14 4,243,219
7,733 Transfirst Holdings, Inc.,
Term Loan.................... B1 B+ 7.87 to 11.62 08/15/12 to 08/15/13 7,796,097
--------------
56,290,183
--------------
FOOD PRODUCTS 0.1%
1,500 Interstate Brands Corp., Term
Loan (b) (d)................. NR NR 7.50 07/19/01 to 07/19/07 1,473,750
--------------
GROCERY 0.4%
7,925 Roundy's Supermarkets, Inc.,
Term Loan.................... Ba3 B+ 8.11 to 8.13 11/03/11 8,006,193
--------------
HEALTH & BEAUTY 2.2%
7,283 American Safety Razor Co.,
Term Loan.................... B1 B 7.86 to 11.72 07/31/13 to 01/30/14 7,375,119
6,971 Bare Escentuals Beauty, Inc.,
Term Loan.................... B2 B 7.82 02/18/12 7,014,301
7,441 CEI Holdings, Inc.,
Term Loan.................... NR NR 8.83 to 13.13 12/03/10 to 12/03/11 7,441,324
9,942 Marietta Intermediate
Holdings Corp., Term Loan.... NR NR 12.00 to 16.50 12/17/10 to 12/17/11 8,501,956
12,384 Prestige Brands Holdings,
Inc., Term Loan.............. Ba3 B+ 7.71 04/06/11 12,489,576
--------------
42,822,276
--------------
HEALTHCARE 9.2%
9,586 American Medical Systems,
Inc., Term Loan (a).......... Ba3 BB- 7.63 to 7.81 07/20/12 9,597,941
794 Ameripath, Inc., Term Loan... Ba2 BB- 7.36 10/31/12 795,290
10,668 Capella Healthcare, Inc.,
Term Loan.................... Caa2 CCC+ 8.36 to 11.36 11/30/12 to 11/30/13 10,742,385
21,371 Community Health Systems,
Inc., Term Loan.............. Ba3 BB- 7.11 to 7.12 08/19/11 to 02/29/12 21,434,943
3,846 Concentra Operating Corp.,
Term Loan.................... Ba2 B+ 7.36 to 7.40 09/30/11 3,861,184
5,073 CRC Health Corp.,
Term Loan.................... Ba3 B 7.61 to 7.86 02/06/13 5,132,149
983 Diagnostic Imaging Group,
LLC, Term Loan............... B1 B 8.94 05/04/12 982,500
5,030 DSI Renal Inc., Term Loan.... NR NR 7.63 03/31/13 5,049,225
894 Emdeon Business Services,
LLC, Term Loan............... B1 B+ 7.87 11/16/13 899,442
</Table>
20 See Notes to Financial Statements
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- ----------------------------------------------------------------------------------------------------------------
HEALTHCARE (CONTINUED)
$ 2,552 FHC Health Systems, Inc.,
Term Loan.................... Ba3 B 12.12 to 14.12% 12/18/09 $ 2,628,086
720 Genoa Healthcare Group, LLC,
Term Loan.................... Ba3 B 8.35 to 10.25 08/10/12 721,610
397 Golden Gate National Senior
Care, LLC, Term Loan......... Ba3 B+ 8.11 03/14/11 399,895
1,744 Harlan Sprague Dawley, Inc.,
Term Loan.................... B1 B+ 7.87 to 9.75 12/19/11 1,754,649
57,300 HCA, Inc., Term Loan......... Ba3 BB 7.86 to 8.11 11/17/12 to 11/17/13 57,852,734
3,343 HealthCare Partners, LLC,
Term Loan.................... Ba2 BB 7.10 10/31/13 3,356,439
29,218 Lifepoint Hospitals, Inc.,
Term Loan.................... Ba3 BB- 6.95 04/15/12 29,197,721
667 Matria Healthcare, Inc., Term
Loan......................... Ba3 B+ 7.36 to 7.37 01/19/12 670,003
21,514 Multiplan, Inc., Term Loan... B1 B+ 7.82 04/12/13 21,584,766
2,469 Sterigenics International,
Inc., Term Loan.............. B2 B+ 7.86 11/21/13 2,477,300
397 US Oncology Holdings, Inc.,
Term Loan.................... Ba3 B+ 7.63 08/20/11 399,200
--------------
179,537,462
--------------
HOME & OFFICE FURNISHINGS, HOUSEWARES & DURABLE CONSUMER
PRODUCTS 1.1%
1,985 Formica Corp., Term Loan..... B1 B 8.36 03/15/13 1,985,000
4,981 Hunter Fan Co., Term Loan.... Ba3 B 7.90 03/24/12 4,906,449
7,400 National Bedding Co., LLC,
Term Loan.................... B3 B+ 10.36 08/31/12 7,501,750
6,987 Quality Home Brands Holdings,
LLC, Term Loan............... Caa1 CCC+ 8.14 to 11.94 12/20/12 to 06/20/13 7,019,810
--------------
21,413,009
--------------
HOTELS, MOTELS, INNS & GAMING 3.6%
9,576 Greektown Casino, LLC, Term
Loan......................... Ba3 B 7.89 12/03/12 9,659,790
4,863 Green Valley Ranch Gaming,
LLC, Term Loan............... NR NR 7.36 12/17/11 4,868,570
1,350 Greenwood Racing, Inc., Term
Loan......................... B2 B+ 7.60 11/28/11 1,361,812
5,100 Herbst Gaming, Inc., Term
Loan......................... Ba3 B+ 7.24 to 7.25 12/02/11 5,142,075
1,160 Interstate Operating Co., LP,
Term Loan.................... NR B 9.88 01/14/08 1,168,929
5,271 Kuilima Resort Co.,
Term Loan.................... NR NR 11.82 09/30/11 5,132,348
7,500 MGM Mirage, Term Loan........ Ba2 BB 6.37 to 6.43 10/03/11 7,410,938
400 Pinnacle Entertainment, Term
Loan......................... B1 BB- 7.32 12/14/11 402,900
</Table>
See Notes to Financial Statements 21
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- ----------------------------------------------------------------------------------------------------------------
HOTELS, MOTELS, INNS & GAMING (CONTINUED)
$ 1,985 Scientific Games Corp., Term
Loan......................... Ba1 BB 6.57% 12/23/09 $ 1,982,519
2,890 Venetian Casino Resorts, LLC,
Revolving Credit Agreement... NR BB- 7.12 02/22/10 2,872,255
4,633 Venetian Macau, Ltd., Term
Loan......................... B1 BB- 8.12 05/26/13 4,691,250
7,675 Wembley, Inc., Term Loan..... Ba3 B+ 7.83 to 9.70 08/23/11 to 07/18/12 7,782,035
12,468 Wimar LandCo, LLC, Term
Loan......................... Ba3 B+ 7.86 07/03/08 to 01/03/12 12,606,758
5,000 Yonkers Racing Corp., Term
Loan......................... NR NR 8.88 08/12/11 5,062,500
--------------
70,144,679
--------------
INSURANCE 1.9%
2,746 American Wholesale Insurance
Group, Inc., Term Loan....... NR B 8.32 to 12.82 10/27/11 to 04/27/12 2,752,566
4,988 Applied Systems Inc., Term
Loan......................... NR NR 8.11 to 8.18 09/26/13 5,017,116
8,242 ARG Holdings, LLC, Term Loan
(a).......................... B2 NR 8.38 to 12.69 11/30/11 to 11/30/12 8,302,279
1,990 Audatex North America, Inc.,
Term Loan.................... Ba3 B+ 7.61 04/13/13 2,007,413
2,536 CCC Information Services
Group, Inc., Term Loan....... NR NR 7.87 02/10/13 2,548,978
7,500 Concord Re, Ltd.,
Term Loan.................... Ba2 BB+ 9.61 02/29/12 7,612,500
2,261 Mitchell International, Inc.,
Term Loan.................... B1 B+ 7.37 08/15/11 2,273,009
1,995 USI Holdings Corp.,
Term Loan.................... B1 NR 7.61 08/11/08 1,997,494
4,749 Vertafore, Inc., Term Loan... NR NR 7.87 to 11.46 01/31/12 to 01/31/13 4,809,018
--------------
37,320,373
--------------
MACHINERY 1.1%
5,489 Alliance Laundry Holdings,
LLC, Term Loan (a)........... Ba3 B 7.57 to 7.60 01/27/12 5,537,258
2,517 Douglas Dynamics, LLC, Term
Loan......................... Ba2 BB- 7.11 12/16/10 2,510,384
913 FR X Ohmstede Acquisitions
Co., Term Loan............... B2 B- 8.44 08/09/13 926,739
1,098 Gleason Corp., Term Loan..... NR NR 7.88 06/30/13 1,107,105
5,843 Goodman Global Holdings,
Inc., Term Loan.............. Ba2 B+ 7.13 12/23/11 5,852,279
3,996 Stolle Machinery Co., LLC,
Term Loan.................... Caa1 B 7.86 to 11.36 09/29/12 to 09/29/13 4,037,628
</Table>
22 See Notes to Financial Statements
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- ----------------------------------------------------------------------------------------------------------------
MACHINERY (CONTINUED)
$ 1,101 United Rentals (North
America), Inc., Term Loan.... Ba1 BB- 7.32% 02/14/11 $ 1,113,496
--------------
21,084,889
--------------
MEDICAL PRODUCTS & SERVICES 1.3%
1,584 Accellent, Inc.,
Term Loan (a)................ B1 BB- 7.37 11/22/12 1,585,980
6,780 AGA Medical Corp.,
Term Loan.................... B1 B+ 7.35 to 7.37 04/28/13 6,783,859
763 Conmed Corp., Term Loan...... Ba2 BB- 7.32 to 9.25 04/12/13 763,347
14,884 DaVita, Inc., Term Loan...... Ba2 BB- 7.32 to 7.69 10/05/12 15,014,706
968 Fresenius Medical Care
Holding, Inc., Term Loan..... NR BB+ 6.74 to 6.75 03/31/13 966,118
--------------
25,114,010
--------------
MINING, STEEL, IRON & NON-PRECIOUS METALS 0.6%
4,465 John Maneely Co.,
Term Loan.................... B3 B+ 8.57 to 8.62 12/08/13 4,477,259
3,125 New Enterprise Stone & Lime
Co., Inc., Term Loan......... NR NR 7.62 to 9.25 07/30/10 3,140,937
3,200 Novelis, Inc., Term Loan..... Ba2 BB- 7.62 01/07/12 3,213,670
--------------
10,831,866
--------------
NATURAL RESOURCES 1.4%
261 Boston Generating, LLC,
Revolving Credit Agreement... B1 B+ 7.62 12/20/13 263,215
8,039 Boston Generating, LLC, Term
Loan......................... B1 B+ 5.24 to 7.60 12/20/13 8,117,195
2,800 CDX Funding, LLC,
Term Loan.................... NR NR 10.61 03/31/13 2,814,876
3,682 El Paso Corp., Term Loan..... Ba3 B+ 7.32 08/01/11 3,703,774
2,500 EXCO Partners Operating, LP,
Term Loan.................... NR NR 11.38 to 11.44 10/02/11 2,532,033
900 Hudson Products Holdings,
Inc., Term Loan.............. B1 B 8.11 to 8.12 12/05/13 907,875
1,584 Key Energy Services Group,
Inc., Term Loan.............. NR NR 7.82 to 7.86 06/30/12 1,593,900
1,918 SemCrude, LP, Term Loan...... Ba2 NR 7.57 to 7.60 03/16/11 1,935,645
1,044 Targa Resources, Inc., Term
Loan......................... B1 B+ 7.61 to 7.62 10/31/12 1,051,677
4,500 Willbros USA, Inc.,
Term Loan.................... NR NR 10.25 10/27/09 4,516,875
--------------
27,437,065
--------------
NON-DURABLE CONSUMER PRODUCTS 1.3%
8,775 Aearo Technologies, Inc.,
Term Loan (a)................ Caa1 CCC+ 7.86 to 11.86 03/24/13 to 09/24/13 8,886,408
3,325 Amscan Holdings, Inc., Term
Loan......................... Ba3 B+ 8.38 to 8.39 12/23/12 3,368,071
</Table>
See Notes to Financial Statements 23
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- ----------------------------------------------------------------------------------------------------------------
NON-DURABLE CONSUMER PRODUCTS (CONTINUED)
$ 2,250 Chattem, Inc., Term Loan..... Ba3 BB- 7.11 to 9.00% 01/02/13 $ 2,264,063
4,395 Easton-Bell Sports, Inc.,
Term Loan.................... Ba3 B+ 7.07 to 7.10 03/16/12 4,406,311
1,796 JohnsonDiversey, Inc., Term
Loan......................... Ba2 B+ 7.87 12/16/11 1,814,987
1,182 Mega Bloks, Inc. (Canada),
Term Loan.................... Ba2 BB- 7.13 to 7.19 07/26/12 1,183,478
1,800 Targus Group International,
Inc., Term Loan.............. B3 CCC+ 13.87 05/22/13 1,695,001
1,985 UCG Paper Crafts, Inc., Term
Loan......................... NR NR 8.57 02/17/13 1,989,962
--------------
25,608,281
--------------
PAPER & FOREST PRODUCTS 2.9%
38,255 Georgia-Pacific Corp., Term
Loan......................... Ba2 BB- 7.11 to 7.36 12/20/12 38,613,760
697 NewPage Corp., Term Loan..... Ba2 B+ 7.63 05/02/11 705,771
2,138 Tidi Products, LLC,
Term Loan.................... NR NR 8.60 to 11.75 12/31/11 2,126,813
8,678 White Birch Paper Co.
(Canada), Term Loan.......... Ba3 B+ 8.62 to 12.87 04/06/12 to 04/08/13 8,828,814
6,822 Xerium Technologies, Inc.,
Term Loan.................... B1 B+ 7.86 05/18/12 6,817,308
--------------
57,092,466
--------------
PERSONAL & MISCELLANEOUS SERVICES 1.6%
11,538 Affinion Group, Inc., Term
Loan (a)..................... Ba2 B+ 7.82 to 7.87 10/17/12 11,659,653
6,773 Coinmach Laundry Corp., Term
Loan......................... B2 B 7.88 12/19/12 6,839,230
5,794 Hertz Corp., Term Loan....... Ba1 BB 7.32 to 7.37 12/21/12 5,841,046
2,569 Iron Mountain, Inc.,
Term Loan.................... Ba2 BB- 7.09 to 7.13 04/02/11 2,577,768
1,181 Omniflight Helicopters, Inc.,
Term Loan.................... NR NR 9.07 to 11.25 09/30/11 to 09/30/12 1,184,137
400 Service Corp. International,
Term Loan.................... B1 BB- 7.32 11/28/09 403,500
2,700 WeightWatchers.com, Term
Loan......................... Ba1 BB 6.88 01/26/14 2,712,658
--------------
31,217,992
--------------
PHARMACEUTICALS 0.8%
2,070 Bradley Pharmaceuticals,
Inc., Term Loan.............. NR NR 9.32 11/14/10 2,080,350
1,275 Stiefel Laboratories, Inc.,
Term Loan.................... Ba3 B+ 7.61 12/28/13 1,289,222
</Table>
24 See Notes to Financial Statements
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- ----------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS (CONTINUED)
$12,868 Warner Chilcott Holdings Co.,
Term Loan.................... B1 B+ 7.36 to 7.37% 01/18/12 $ 12,941,818
--------------
16,311,390
--------------
PRINTING & PUBLISHING 7.5%
5,403 ALM Media Holdings, Inc.,
Term Loan.................... B1 B- 7.86 03/05/10 5,418,313
3,300 American Media Operations,
Inc., Term Loan (a).......... B1 B- 8.37 01/31/13 3,323,374
1,067 Ascend Media Holdings, LLC,
Term Loan.................... NR NR 8.86 to 8.87 01/31/12 1,039,348
1,995 Black Press Group, Ltd., Term
Loan......................... Ba3 B+ 7.37 08/02/13 2,009,963
5,411 Canon Communications, LLC,
Term Loan.................... B2 B 8.32 05/31/11 5,437,667
2,309 Caribe Information
Investment, Inc., Term
Loan......................... B1 B 7.61 to 7.63 03/31/13 2,318,054
10,655 Cygnus Business Media, Inc.,
Term Loan.................... B2 CCC+ 9.85 07/13/09 10,628,113
9,119 Day International Group,
Inc., Term Loan.............. Ba3 B 7.86 to 12.61 12/05/12 to 12/05/13 9,241,165
11,660 Endurance Business Media,
Inc., Term Loan.............. B1 CCC+ 8.07 to 12.57 07/26/13 to 01/26/14 11,739,451
3,950 FSC Acquisition, LLC, Term
Loan......................... B1 B 7.61 to 7.62 08/01/12 3,956,092
4,405 Gatehouse Media, Inc., Term
Loan......................... B1 B+ 7.57 12/06/13 4,420,867
8,369 Haights Cross Communications,
LLC, Term Loan............... B3 B- 8.88 to 9.88 08/20/08 8,410,195
4,500 Idearc, Inc., Term Loan...... Ba2 BB+ 7.33 11/17/14 4,538,952
2,442 MC Communications, LLC, Term
Loan......................... NR NR 7.97 12/31/10 2,451,643
2,270 Mediacom Communications
Corp., Term Loan............. Ba3 BB- 7.27 01/31/15 2,240,811
2,655 MediaNews Group, Inc., Term
Loan......................... Ba2 BB- 6.57 to 7.07 12/30/10 2,654,351
2,244 MediMedia USA, Inc., Term
Loan......................... Ba3 B+ 7.77 to 7.86 10/05/13 2,257,000
11,312 Merrill Communications, LLC,
Term Loan.................... B1 B+ 7.57 to 11.82 05/15/11 to 11/15/13 11,351,095
1,881 Network Communications, Inc.,
Term Loan.................... Ba1 B+ 7.85 to 7.96 11/30/12 1,890,405
7,425 New Publications, Inc., Term
Loan......................... NR NR 7.63 to 11.61 02/05/13 7,462,311
8,732 Primedia, Inc., Term Loan.... NR NR 7.57 09/30/13 8,719,269
</Table>
See Notes to Financial Statements 25
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- ----------------------------------------------------------------------------------------------------------------
PRINTING & PUBLISHING (CONTINUED)
$ 9,791 R.H. Donnelley, Inc., Term
Loan......................... Ba1 BB 6.61 to 6.87% 12/31/09 to 06/30/11 $ 9,785,336
7,525 Riverdeep Interactive
Learning USA, Inc., Term
Loan......................... Ba3 B 8.10 12/20/13 7,614,359
2,325 SGS International, Inc., Term
Loan......................... Ba2 B+ 7.85 to 7.88 12/30/11 2,336,695
1,770 Source Media, Inc.,
Term Loan.................... B1 NR 7.61 11/08/11 1,781,767
3,634 Thomas Nelson Publishers,
Term Loan.................... NR NR 7.57 to 7.61 06/12/12 3,643,079
10,469 Yell Group, PLC, Term Loan... NR NR 7.07 to 7.32 04/30/11 to 02/10/13 10,540,550
--------------
147,210,225
--------------
RESTAURANTS & FOOD SERVICE 1.6%
5,273 Arby's, LLC, Term Loan....... Ba3 B+ 7.57 to 7.61 07/25/12 5,327,534
3,239 Carrols Corp., Term Loan..... Ba3 BB- 7.88 12/31/10 3,255,026
1,709 Denny's Corp., Term Loan..... Ba2 B+ 7.57 to 7.63 03/31/12 1,732,663
4,864 Landry's Restaurants, Inc.,
Term Loan.................... Ba1 BB 7.12 12/28/10 4,871,546
12,062 NPC International, Inc., Term
Loan......................... B2 B+ 7.07 to 7.13 05/03/13 12,100,628
2,982 Sagittarius Restaurants, LLC,
Term Loan.................... Ba3 B 7.62 03/29/13 2,996,457
--------------
30,283,854
--------------
RETAIL--OFFICE PRODUCTS 0.4%
8,357 Buhrmann US, Inc.,
Term Loan.................... Ba3 BB- 7.11 to 7.12 12/23/10 to 12/31/10 8,388,083
--------------
RETAIL--OIL & GAS 0.1%
1,782 The Pantry, Inc., Term
Loan......................... Ba2 BB 7.07 01/02/12 1,789,796
--------------
RETAIL--SPECIALTY 0.7%
11,735 Nebraska Book Co., Inc., Term
Loan......................... B2 B- 7.88 03/04/11 11,794,056
1,577 Visant Holding Corp., Term
Loan......................... Ba2 B+ 7.37 10/04/11 1,586,242
--------------
13,380,298
--------------
RETAIL--STORES 1.8%
5,985 Csk Auto, Inc., Term Loan.... Ba3 B+ 8.38 06/29/12 6,078,516
10,988 Michaels Stores, Inc., Term
Loan......................... B2 B- 8.13 10/31/13 11,089,956
11,190 Neiman Marcus Group, Inc.,
Term Loan.................... Ba3 B+ 7.60 04/06/13 11,320,571
796 Pep Boys--Manny, Moe & Jack,
Term Loan.................... Ba2 B+ 8.12 10/27/13 806,448
</Table>
26 See Notes to Financial Statements
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- ----------------------------------------------------------------------------------------------------------------
RETAIL--STORES (CONTINUED)
$ 3,139 Sally Holdings, Inc.,
Term Loan.................... B2 B+ 7.87% 11/16/13 $ 3,169,158
2,993 Savers, Inc., Term Loan...... B1 B 8.11 08/11/12 3,018,684
--------------
35,483,333
--------------
TELECOMMUNICATIONS--EQUIPMENT & SERVICES 0.2%
4,000 Level 3 Communications, Inc.,
Term Loan.................... B1 NR 8.37 12/01/11 4,053,752
--------------
TELECOMMUNICATIONS--LOCAL EXCHANGE CARRIERS 1.1%
400 Alaska Communications Systems
Group, Inc., Term Loan (a)... B1 B+ 7.11 02/01/12 401,333
1,800 CavTel Holdings, LLC, Term
Loan......................... B2 NR 10.12 12/31/12 1,820,250
11,200 Fairpoint Communications,
Inc., Term Loan.............. B1 BB- 7.13 02/08/12 11,238,506
4,277 Hawaiian Telecom, Inc., Term
Loan......................... Ba3 B 7.62 04/30/12 to 10/31/12 4,283,075
6,579 Orius Corp., LLC, Term Loan
(b) (c) (d) (g).............. NR NR 11.75 to 12.25 01/23/09 to 01/23/10 1,368,664
1,000 Sorenson Communications,
Inc., Term Loan.............. NR NR 12.37 02/16/14 1,013,333
2,000 Windstream Corp.,
Term Loan.................... Ba1 BBB- 7.11 07/17/13 2,017,968
--------------
22,143,129
--------------
TELECOMMUNICATIONS--LONG DISTANCE 0.4%
7,478 Time Warner Telecom, Inc.,
Term Loan.................... Ba2 B 7.57 01/07/13 7,544,797
--------------
TELECOMMUNICATIONS-WIRELESS 0.9%
1,559 American Cellular Corp., Term
Loan (a)..................... Ba3 B+ 7.60 to 7.64 08/07/13 1,569,991
8,708 Centennial Cellular, Inc.,
Term Loan.................... Ba2 B 7.61 to 7.62 02/09/11 8,783,626
6,169 Cricket Communications, Inc.,
Term Loan.................... B1 B 8.11 06/16/13 6,253,824
1,347 MetroPCS Wireless, Inc., Term
Loan......................... B1 B 7.88 11/03/13 1,359,850
--------------
17,967,291
--------------
TEXTILES & LEATHER 1.2%
4,950 Gold Toe Investment Corp.,
Term Loan.................... B1 B 8.10 to 11.36 10/30/13 to 04/30/14 5,023,688
11,638 HanesBrands, Inc.,
Term Loan.................... Ba2 BB- 7.57 to 9.11 09/05/13 11,896,901
</Table>
See Notes to Financial Statements 27
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- ----------------------------------------------------------------------------------------------------------------
TEXTILES & LEATHER (CONTINUED)
$ 3,678 Propex Fabrics, Inc., Term
Loan......................... Ba3 B 8.32% 07/31/12 $ 3,687,206
3,673 St. John Knits International,
Inc., Term Loan.............. B1 B+ 8.38 03/21/12 3,690,911
--------------
24,298,706
--------------
TOBACCO 0.1%
1,212 Alliance One International,
Inc., Term Loan.............. B1 B+ 8.11 to 8.12 05/13/08 1,220,789
--------------
TRANSPORTATION--CARGO 0.4%
2,673 Jacobson Acquisition Co.,
Term Loan.................... NR NR 8.59 to 9.11 04/07/09 to 04/07/11 2,679,691
1,658 Kenan Advantage Group, Inc.,
Term Loan.................... NR NR 8.36 12/16/11 1,670,066
694 Pacer International, Inc.,
Term Loan.................... Ba2 BB 6.88 to 6.94 06/10/10 692,383
2,154 Quality Distribution, Inc.,
Term Loan.................... Ba3 B- 8.32 11/13/09 2,159,663
--------------
7,201,803
--------------
TRANSPORTATION--PERSONAL 0.1%
934 Neoplan USA Corp., Revolving
Credit Agreement (b) (d)
(e).......................... NR NR 8.54 06/30/06 873,056
500 US Airways Group, Inc., Term
Loan......................... B2 B 8.86 03/31/11 503,973
--------------
1,377,029
--------------
TRANSPORTATION-RAIL MANUFACTURING 0.5%
7,417 Helm Holding Corp., Term
Loan......................... NR NR 7.87 to 7.88 07/08/11 7,440,624
1,327 Standard Steel, LLC, Term
Loan......................... B2 B+ 7.87 06/30/12 1,338,275
--------------
8,778,899
--------------
UTILITIES 3.2%
800 Astoria Generating Co., LP,
Term Loan.................... B3 B 9.12 08/23/13 812,167
11,250 First Light Power Resources,
Term Loan.................... B1 B+ 7.87 to 9.88 11/01/13 to 05/01/14 11,406,186
2,522 InfrastruX Group, Inc., Term
Loan......................... B2 B+ 8.57 11/03/12 2,537,623
11,374 NRG Energy, Inc.,
Term Loan.................... Ba1 BB- 7.36 02/01/13 11,486,588
4,200 Primary Energy Operating,
LLC, Term Loan............... NR NR 8.12 08/24/09 4,213,125
2,250 Reliant Energy Resources,
Inc., Term Loan.............. B2 B 5.19 to 7.70 12/01/10 2,272,500
</Table>
28 See Notes to Financial Statements
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) continued
<Table>
<Caption>
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT --------------
(000) BORROWER MOODY'S S&P COUPON STATED MATURITY* VALUE
- ----------------------------------------------------------------------------------------------------------------
UTILITIES (CONTINUED)
$22,500 Thermal North America, Term
Loan......................... B1 BB- 8.08 to 8.12% 10/24/08 $ 22,696,875
212 TPF Generation Holdings, LLC,
Revolving Credit Agreement... Ba3 B+ 7.37 12/15/13 214,014
6,088 TPF Generation Holdings, LLC,
Term Loan.................... Ba3 B+ 7.37 to 9.62 12/15/13 to 12/15/14 6,135,342
--------------
61,774,420
--------------
TOTAL VARIABLE RATE** SENIOR LOAN INTERESTS 121.3%............................................. 2,367,365,484
--------------
</Table>
<Table>
DESCRIPTION VALUE
- ----------------------------------------------------------------------------------------------------------------
NOTES 1.4%
Boise Cascade, LLC ($2,800,000 par, 8.24% coupon, maturing 10/15/12) (h)....................... 2,828,000
Builders FirstSource, Inc., ($6,300,000 par, 9.62% coupon, maturing 02/15/12) (h).............. 6,394,500
Compression Polymers Corp. ($2,300,000 par, 12.12% coupon, maturing 07/01/12) (h).............. 2,392,000
Del Laboratories, Inc. ($3,600,000 par, 10.36% coupon
maturing 11/01/11) (h)....................................................................... 3,753,000
Qwest Corp. ($3,500,000 par, 8.61% coupon, maturing 06/15/13) (h).............................. 3,832,500
Rogers Wireless Communications, Inc. ($6,000,000 par, 8.49% coupon, maturing 12/15/10) (Canada)
(h).......................................................................................... 6,135,000
Verso Paper Holdings, LLC ($1,500,000 par, 9.11% coupon, maturing 08/01/14) (h) (i)............ 1,545,000
--------------
TOTAL NOTES.................................................................................... 26,880,000
--------------
EQUITIES 0.3%
Aladdin Gaming Holdings, LLC (8.63% ownership interest, Acquisition date 09/03/04, Cost
$240,062) (j) (k)............................................................................ 53,798
DecorateToday.com (198,600 common shares, Acquisition date 12/31/98, Cost $3,505,909) (g) (j)
(k).......................................................................................... 0
Environmental Systems Products Holdings, Inc. (2,183 common shares, Acquisition date 06/22/04,
Cost $0) (j) (k)............................................................................. 45,144
Gentek, Inc. (1,040 common shares, Acquisition date 09/19/06,
Cost $0) (j) (k)............................................................................. 38,678
Gentek, Inc. (Warrants for 1,597 common shares, Acquisition date 10/17/06, Expiration date
10/31/10, Cost $0) (j) (k)................................................................... 89,442
IDT Corp. (22,898 common shares) (j)........................................................... 307,520
London Fog Industries, Inc. (515,922 common shares) (g) (j).................................... 0
</Table>
See Notes to Financial Statements 29
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) continued
<Table>
<Caption>
BORROWER VALUE
- ----------------------------------------------------------------------------------------------------------------
EQUITIES (CONTINUED)
Neoplan USA Corp. (2,262 preferred shares, Acquisition date 09/04/03, Cost $1,074,522) (b) (g)
(j) (k)...................................................................................... $ 0
Neoplan USA Corp. (8,517 common shares, Acquisition date 09/04/03, Cost $85) (b) (g) (j) (k)... 0
Orius Corp. (1,211,236 common shares, Acquisition date 02/03/03, Cost $0) (b) (g) (j) (k)...... 0
Planet Hollywood International, Inc. (Warrants for 95,324 common shares, Acquisition date
09/03/04, Expiration date 03/21/07, Cost $0) (j) (k)......................................... 153,472
Railworks Corp. (Warrants for 1,037 common shares, Acquisition date 07/28/05, Expiration date
06/14/11, Cost $2,560,327) (j) (k)........................................................... 0
Rotech Medical Corp. (94,289 common shares, Acquisition date 06/12/02, Cost $377,156) (j)
(k).......................................................................................... 0
Safelite Glass Corp. (724,479 common shares, Acquisition date 10/20/00, Cost $3,912,187) (g)
(j) (k)...................................................................................... 5,433,593
Safelite Realty (48,903 common shares, Acquisition date 10/20/00, Cost $0) (g) (j) (k)......... 0
--------------
TOTAL EQUITIES 0.3%........................................................................... 6,121,647
--------------
TOTAL LONG-TERM INVESTMENTS 123.0%
(Cost $2,440,045,568)........................................................................ 2,400,367,131
--------------
SHORT-TERM INVESTMENTS 1.9%
REPURCHASE AGREEMENTS 1.3%
State Street Bank & Trust Corp. ($26,000,000 par, collateralized by U.S. Government obligations
in a pooled cash account, interest rate of 5.08%, dated 01/31/07, to be sold on 02/01/07 at
$26,003,669) (a)............................................................................. 26,000,000
TIME DEPOSIT 0.6%
State Street Bank & Trust Corp. ($10,985,627 par, 4.05% coupon, Dated 01/31/07, to be sold on
02/01/07 at $10,986,863) (a)................................................................. 10,985,627
--------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $36,985,627)........................................................................... 36,985,627
--------------
TOTAL INVESTMENTS 124.9%
(Cost $2,477,031,195)........................................................................ 2,437,352,758
BORROWINGS (22.6%)............................................................................ (440,000,000)
LIABILITIES IN EXCESS OF OTHER ASSETS (2.3%).................................................. (45,741,456)
--------------
NET ASSETS 100.0%............................................................................. $1,951,611,302
==============
</Table>
NR--Not rated
Industry percentages are calculated as a percentage of net assets.
30 See Notes to Financial Statements
VAN KAMPEN SENIOR LOAN FUND
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2007 (UNAUDITED) continued
(a) All or a portion of this security is designated in connection with unfunded
loan commitments.
(b) This borrower has filed for protection in federal bankruptcy court.
(c) This borrower is currently in liquidation.
(d) This Senior Loan interest is non-income producing.
(e) The borrower is in the process of restructuring or amending the terms of
this loan.
(f) Payment-in-kind security
(g) Affiliated company
(h) Variable rate security. Interest rate shown is that in effect at January 31,
2007.
(i) 144A-Private Placement security which is exempt from registration under Rule
144A of the Securities Act of 1933, as amended. This security may only be
resold in transactions exempt from registration which are normally those
transactions with qualified institutional buyers.
(j) Non-income producing security as the stock or warrant currently does not
declare dividends.
(k) Restricted security. Securities were acquired through the restructuring of
senior loans. These securities are restricted as they are not allowed to be
deposited via the Depository Trust Company. If at a later point in time, the
company wishes to register, the issuer will bear the costs associated with
registration. The aggregate value of restricted securities represents 0.30%
of the net assets of the Fund.
+ Bank Loans rated below Baa by Moody's Investor Service, Inc. or BBB by
Standard & Poor's Group are considered to be below investment grade. Bank
loan ratings are unaudited.
* Senior Loans in the Fund's portfolio generally are subject to mandatory
and/or optional prepayment. Because of these mandatory prepayment conditions
and because there may be significant economic incentives for a Borrower to
prepay, prepayments of Senior Loans in the Fund's portfolio may occur. As a
result, the actual remaining maturity of Senior Loans held in the Fund's
portfolio may be substantially less than the stated maturities shown.
Although the Fund is unable to accurately estimate the actual remaining
maturity of individual Senior Loans, the Fund estimates that the actual
average maturity of the Senior Loans held in its portfolio will be
approximately 18-24 months.
** Senior Loans in which the Fund invests generally pay interest at rates which
are periodically redetermined by reference to a base lending rate plus a
premium. These base lending rates are generally (i) the lending rate offered
by one or more major European banks, such as the London Inter-Bank Offered
Rate ("LIBOR"), (ii) the prime rate offered by one or more major United
States banks or (iii) the certificate of deposit rate. Senior Loans are
generally considered to be restricted in that the Fund ordinarily is
contractually obligated to receive approval from the Agent Bank and/or
Borrower prior to the disposition of a Senior Loan.
SWAP AGREEMENTS OUTSTANDING AS OF JANUARY 31, 2007:
CREDIT DEFAULT SWAPS
<Table>
<Caption>
PAY/
RECEIVE NOTIONAL UNREALIZED
BUY/SELL FIXED EXPIRATION AMOUNT APPRECIATION/
COUNTERPARTY REFERENCE ENTITY PROTECTION RATE DATE (000) DEPRECIATION
Goldman Sachs Standard Pacific
CreditPartners, L.P. Corporation Sell 3.40% 03/20/14 $2,500 $129,407
</Table>
See Notes to Financial Statements 31
VAN KAMPEN SENIOR LOAN FUND
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
January 31, 2007 (Unaudited)
<Table>
ASSETS:
Unaffiliated Investments (Cost $2,430,052,410).............. $ 2,429,677,445
Affiliated Investments (Cost $46,978,785)................... 7,675,313
---------------
Total Investments (Cost $2,477,031,195).................... $ 2,437,352,758
Cash........................................................ 21
Receivables:
Investments Sold........................................... 18,537,597
Interest and Fees.......................................... 17,220,203
Fund Shares Sold........................................... 13,166,299
Swap Contracts............................................. 129,407
Other....................................................... 20,759
---------------
Total Assets............................................. 2,486,427,044
---------------
LIABILITIES:
Payables:
Borrowings................................................. 440,000,000
Investments Purchased...................................... 84,165,817
Income Distributions....................................... 2,644,070
Investment Advisory Fee.................................... 1,389,233
Administrative Fee......................................... 404,894
Distributor and Affiliates................................. 332,163
Accrued Interest Expense.................................... 1,970,105
Accrued Expenses............................................ 1,402,858
Trustees' Deferred Compensation and Retirement Plans........ 1,389,862
Unfunded Commitments........................................ 1,116,740
---------------
Total Liabilities........................................ 534,815,742
---------------
NET ASSETS.................................................. $ 1,951,611,302
===============
NET ASSETS CONSIST OF:
Capital..................................................... $ 3,125,734,998
Accumulated Undistributed Net Investment Income............. (867,633)
Net Unrealized Depreciation................................. (40,665,770)
Accumulated Net Realized Loss............................... (1,132,590,293)
---------------
NET ASSETS.................................................. $ 1,951,611,302
===============
NET ASSET VALUE AND MAXIMUM OFFERING PRICE PER SHARE:
Class A Shares:
Net Asset value per share (Based on net assets of
$220,213,219 and 24,369,376 shares of beneficial interest
issued and outstanding).................................. $ 9.04
Maximum sales charge (3.25%* of offering price).......... 0.30
---------------
Maximum offering price to public......................... $ 9.34
===============
Class B Shares:
Net asset value and offering price per share (Based on
net assets of $24,438,065 and 2,705,211 shares of
beneficial interest issued and outstanding).............. $ 9.03
===============
Class C Shares:
Net asset value and offering price per share (Based on
net assets of $191,699,326 and 21,221,382 shares of
beneficial interest issued and outstanding).............. $ 9.03
===============
Class IB Shares:
Net asset value and offering price per share (Based on
net assets of $1,248,157,491 and 137,964,631 shares of
beneficial interest issued and outstanding).............. $ 9.05
===============
Class IC Shares:
Net asset value and offering price per share (Based on
net assets of $267,103,201 and 29,534,024 shares of
beneficial interest issued and outstanding).............. $ 9.04
===============
</Table>
* On sales of $100,000 or more, the sales charge will be reduced.
32 See Notes to Financial Statements
VAN KAMPEN SENIOR LOAN FUND
FINANCIAL STATEMENTS continued
Statement of Operations
For the Six Months Ended January 31, 2007 (Unaudited)
<Table>
INVESTMENT INCOME:
Interest from Unaffiliated Investments...................... $ 92,584,386
Interest from Affiliated Investments........................ 68,568
Other....................................................... 2,308,946
------------
Total Income.............................................. 94,961,900
------------
EXPENSES:
Investment Advisory Fee..................................... 7,953,051
Administration Fee.......................................... 2,314,540
Distribution (12b-1) and Service Fees
Class A................................................... 168,738
Class B................................................... 103,767
Class C................................................... 567,029
Class IC.................................................. 213,249
Credit Line................................................. 927,519
Transfer Agent Fees......................................... 915,159
Professional Fees........................................... 465,714
Custody..................................................... 253,942
Reports to Shareholders..................................... 177,840
Trustees' Fees and Related Expenses......................... 164,859
Accounting and Administrative Expenses...................... 152,975
Other....................................................... 65,123
------------
Total Operating Expenses................................ 14,443,505
Service Fee Reimbursement............................... 549,686
Less Credits Earned on Cash Balances.................... 64,371
------------
Net Operating Expenses.................................. 13,829,448
Interest Expense........................................ 10,576,725
------------
Total Expenses.......................................... 24,406,173
------------
NET INVESTMENT INCOME....................................... $ 70,555,727
============
REALIZED AND UNREALIZED GAIN/LOSS:
Realized Gain/Loss:
Unaffiliated Securities................................... $ (3,988,882)
Affiliated Securities..................................... (36,906,656)
Foreign Currency Transactions............................. 9,422
Swap Contracts............................................ 107,849
------------
Net Realized Loss........................................... (40,778,267)
------------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... (92,713,009)
------------
End of the Period:
Investments........................................... (39,678,437)
Swap Contracts........................................ 129,407
Unfunded Commitments.................................. (1,116,740)
------------
(40,665,770)
------------
Net Unrealized Appreciation During the Period............... 52,047,239
------------
NET REALIZED AND UNREALIZED GAIN............................ $ 11,268,972
============
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $ 81,824,699
============
</Table>
See Notes to Financial Statements 33
VAN KAMPEN SENIOR LOAN FUND
FINANCIAL STATEMENTS continued
Statements of Changes in Net Assets (Unaudited)
<Table>
<Caption>
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
JANUARY 31, 2007 JULY 31, 2006
-------------------------------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income................................. $ 70,555,727 $ 118,418,127
Net Realized Loss..................................... (40,778,267) (4,980,255)
Net Unrealized Appreciation/Depreciation During the
Period.............................................. 52,047,239 (24,358,875)
-------------- --------------
Change in Net Assets from Operations.................. 81,824,699 89,078,997
-------------- --------------
Distributions from Net Investment Income:
Class A Shares...................................... (5,401,960) (4,106,348)
Class B Shares...................................... (752,258) (689,736)
Class C Shares...................................... (4,119,985) (3,401,184)
Class IB Shares..................................... (51,575,988) (83,511,213)
Class IC Shares..................................... (11,293,019) (20,911,291)
-------------- --------------
Total Distributions................................... (73,143,210) (112,619,772)
-------------- --------------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES... 8,681,489 (23,540,775)
-------------- --------------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold............................. 288,341,322 115,282,367
Net Asset Value of Shares Issued Through Dividend
Reinvestment........................................ 40,301,709 59,986,676
Cost of Shares Repurchased............................ (165,404,853) (557,406,980)
-------------- --------------
NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS.... 163,238,178 (382,137,937)
-------------- --------------
TOTAL INCREASE/DECREASE IN NET ASSETS................. 171,919,667 (405,678,712)
NET ASSETS:
Beginning of the Period............................... 1,779,691,635 2,185,370,347
-------------- --------------
End of the Period (Including accumulated undistributed
net investment income of ($867,633) and $1,719,850,
respectively)....................................... $1,951,611,302 $1,779,691,635
============== ==============
</Table>
34 See Notes to Financial Statements
VAN KAMPEN SENIOR LOAN FUND
FINANCIAL STATEMENTS continued
Statement of Cash Flows
For the Six Months Ended January 31, 2007 (Unaudited)
<Table>
CHANGE IN NET ASSETS FROM OPERATIONS........................ $ 81,824,699
-------------
Adjustments to Reconcile the Change in Net Assets from
Operations to Net Cash Provided by Operating Activities:
Increase in Investments at Value.......................... (337,227,855)
Increase in Receivables for Investments Sold.............. (14,932,097)
Increase in Interest and Fees Receivable.................. (3,296,326)
Increase in Receivables for Swap Contracts................ (129,407)
Decrease in Other Assets.................................. 27,513
Decrease in Payable for Investments Purchased............. (50,980,745)
Increase in Investment Advisory Fee Payable............... 26,598
Increase in Administrative Fee Payable.................... 8,060
Decrease in Distributor and Other Affiliates Payable...... (471,958)
Change in Unfunded Commitments............................ (893,011)
Decrease in Accrued Expenses.............................. (323,854)
Increase in Trustees' Deferred Compensation and Retirement
Plans................................................... 151,122
-------------
Total Adjustments....................................... (408,041,960)
-------------
NET CASH PROVIDED BY OPERATING ACTIVITIES................... (326,217,261)
-------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Shares Sold................................... 278,897,343
Change in Bank Borrowings................................... 245,000,000
Change in Accrued Interest Expense.......................... 1,764,213
Payments on Shares Repurchased.............................. (167,270,587)
Cash Distributions Paid..................................... (32,173,687)
-------------
Net Cash Used for Financing Activities.................. 326,217,282
-------------
NET INCREASE IN CASH........................................ 21
Cash at Beginning of the Period............................. 0
-------------
CASH AT THE END OF THE PERIOD............................... $ 21
=============
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash Paid During the Year for Interest...................... $ 8,812,513
=============
</Table>
See Notes to Financial Statements 35
VAN KAMPEN SENIOR LOAN FUND
FINANCIAL HIGHLIGHTS (UNAUDITED)
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE
FUND OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
<Table>
<Caption>
FEBRUARY 18, 2005
CLASS A SHARES SIX MONTHS (COMMENCEMENT
ENDED YEAR ENDED OF OPERATIONS) TO
JANUARY 31, 2007 JULY 31, 2006 JULY 31, 2005
-----------------------------------------------------
NET ASSET VALUE, BEGINNING OF THE PERIOD.... $ 8.99 $ 9.10 $ 9.12
-------- -------- --------
Net Investment Income (a)................. 0.35 0.54 0.18
Net Realized and Unrealized Gain/Loss..... 0.06 (0.15) (0.04)
-------- -------- --------
Total from Investment Operations............ 0.41 0.39 0.14
Less Distributions from Net Investment
Income.................................. 0.36 0.50 0.16
-------- -------- --------
NET ASSET VALUE, END OF THE PERIOD.......... $ 9.04 $ 8.99 $ 9.10
-------- -------- --------
Total Return (b)............................ 4.57%** 4.39% 1.75%**
Net Assets at End of the Period (In
millions)................................. $ 220.2 $ 91.0 $ 54.0
Ratios to Average Net Assets excluding
Borrowings:*
Operating Expense......................... 1.44% 1.39% 1.42%
Interest Expense.......................... 1.16% 0.10% 0.04%
Total Net Expense......................... 2.60% 1.49% 1.46%
Net Investment Income..................... 7.67% 5.95% 4.44%
Portfolio Turnover (c)...................... 33%** 84% 90%
* If certain expenses had not been voluntarily assumed by Van Kampen, total return would have been
lower and the ratios would have been as follows:
Ratios to Average Net Assets excluding
Borrowings:
Operating Expense......................... 1.69% 1.64% 1.67%
Interest Expense.......................... 1.16% 0.10% 0.04%
Total Gross Expense....................... 2.85% 1.74% 1.71%
Net Investment Income..................... 7.92% 5.70% 4.19%
SENIOR INDEBTEDNESS:
Total Borrowing Outstanding (In
thousands).............................. $440,000 $195,000 $123,000
Asset Coverage Per $1,000 Unit of Senior
Indebtedness (d)........................ $ 5,435 $ 10,127 $ 18,767
</Table>
** Non-Annualized
(a) Based on average shares outstanding.
(b) Assumes reinvestment of all distributions for the period and does not
include payment of the maximum sales charge of 3.25% or early withdrawal
charge. On purchases of $1 million or more, an early withdrawal charge of 1%
may be imposed on certain repurchases by the Fund made within eighteen
months of purchase. If the sales charges were included, total returns would
be lower. These returns include combined distribution and services fees of
up to .25% and do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the repurchases by the Fund of Fund
shares.
(c) Calculation includes the proceeds from principal repayments and sales of
variable rate senior loan interests.
(d) Calculated by subtracting the Fund's total liabilities (not including the
Borrowings) from the Fund's total assets and dividing by the total number of
senior indebtedness units, where one unit equals $1,000 of senior
indebtedness.
36 See Notes to Financial Statements
VAN KAMPEN SENIOR LOAN FUND
FINANCIAL HIGHLIGHTS (UNAUDITED) continued
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE
FUND OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
<Table>
<Caption>
FEBRUARY 18, 2005
CLASS B SHARES SIX MONTHS (COMMENCEMENT
ENDED YEAR ENDED OF OPERATIONS) TO
JANUARY 31, 2007 JULY 31, 2006 JULY 31, 2005
------------------------------------------------------
NET ASSET VALUE, BEGINNING OF THE PERIOD... $ 8.99 $ 9.10 $ 9.12
-------- -------- --------
Net Investment Income (a)................ 0.31 0.47 0.14
Net Realized and Unrealized Gain/Loss.... 0.06 (0.14) (0.03)
-------- -------- --------
Total from Investment Operations........... 0.37 0.33 0.11
Less Distributions from Net Investment
Income................................. 0.33 0.44 0.13
-------- -------- --------
NET ASSET VALUE, END OF THE PERIOD......... $ 9.03 $ 8.99 $ 9.10
-------- -------- --------
Total Return (b)........................... 4.07%** 3.63% 1.41%**
Net Assets at End of the Period (In
millions)................................ $ 24.4 $ 17.8 $ 10.8
Ratios to Average Net Assets excluding
Borrowings:*
Operating Expense........................ 2.20% 2.14% 2.18%
Interest Expense......................... 1.15% 0.10% 0.04%
Total Net Expense........................ 3.35% 2.24% 2.22%
Net Investment Income.................... 6.93% 5.24% 3.73%
Portfolio Turnover (c)..................... 33%** 84% 90%
* If certain expenses had not been voluntarily assumed by Van Kampen, total return would have been
lower and the ratios would have been as follows:
Ratios to Average Net Assets excluding
Borrowings:
Operating Expense........................ 2.45% 2.39% 2.43%
Interest Expense......................... 1.15% 0.10% 0.04%
Total Gross Expense...................... 3.60% 2.49% 2.47%
Net Investment Income.................... 7.18% 4.99% 3.48%
SENIOR INDEBTEDNESS:
Total Borrowing Outstanding (In
thousands)............................. $440,000 $195,000 $123,000
Asset Coverage Per $1,000 Unit of Senior
Indebtedness (d)....................... $ 5,435 $ 10,127 $ 18,767
</Table>
** Non-Annualized
(a) Based on average shares outstanding.
(b) Assumes reinvestment of all distributions for the period and does not
include payment of the maximum early withdrawal charge of 3%, charged on
certain repurchases by the Fund made within one year of purchase and
declining to 0% after the fifth year. If the sales charge was included,
total returns would be lower. These returns include combined distribution
and services fees of up to 1% and do not reflect the deduction of taxes that
a shareholder would pay on Fund distributions or the repurchases by the Fund
of Fund shares.
(c) Calculation includes the proceeds from principal repayments and sales of
variable rate senior loan interests.
(d) Calculated by subtracting the Fund's total liabilities (not including the
Borrowings) from the Fund's total assets and dividing by the total number of
senior indebtedness units, where one unit equals $1,000 of senior
indebtedness.
See Notes to Financial Statements 37
VAN KAMPEN SENIOR LOAN FUND
FINANCIAL HIGHLIGHTS (UNAUDITED) continued
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE
FUND OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
<Table>
<Caption>
FEBRUARY 18, 2005
CLASS C SHARES SIX MONTHS (COMMENCEMENT
ENDED YEAR ENDED OF OPERATIONS) TO
JANUARY 31, 2007 JULY 31, 2006 JULY 31, 2005
-----------------------------------------------------
NET ASSET VALUE, BEGINNING OF THE PERIOD.... $ 8.99 $ 9.10 $ 9.12
-------- -------- --------
Net Investment Income (a)................. 0.31 0.47 0.14
Net Realized and Unrealized Gain/Loss..... 0.06 (0.14) (0.03)
-------- -------- --------
Total from Investment Operations............ 0.37 0.33 0.11
Less Distributions from Net Investment
Income.................................. $ 0.33 $ 0.44 $ 0.13
-------- -------- --------
NET ASSET VALUE, END OF THE PERIOD.......... $ 9.03 $ 8.99 $ 9.10
-------- -------- --------
Total Return (b)............................ 4.07%** 3.63% 1.41%**
Net Assets at End of the Period (In
millions)................................. $ 191.7 $ 72.5 $ 55.7
Ratios to Average Net Assets excluding
Borrowings:*
Operating Expense......................... 2.19% 2.14% 2.17%
Interest Expense.......................... 1.16% 0.10% 0.04%
Total Net Expense......................... 3.35% 2.24% 2.21%
Net Investment Income..................... 6.90% 5.19% 3.66%
Portfolio Turnover (c)...................... 33%** 84% 90%
* If certain expenses had not been voluntarily assumed by Van Kampen, total return would have
been lower and the ratios would have been as follows:
Ratios to Average Net Assets excluding
Borrowings:
Operating Expense......................... 2.43% 2.39% 2.42%
Interest Expense.......................... 1.16% 0.10% 0.04%
Total Gross Expense....................... 3.59% 2.49% 2.46%
Net Investment Income..................... 7.15% 4.94% 3.41%
SENIOR INDEBTEDNESS:
Total Borrowing Outstanding (In
thousands).............................. $440,000 $195,000 $123,000
Asset Coverage Per $1,000 Unit of Senior
Indebtedness (d)........................ $ 5,435 $ 10,127 $ 18,767
</Table>
** Non-Annualized
(a) Based on average shares outstanding.
(b) Assumes reinvestment of all distributions for the period and does not
include payment of the maximum early withdrawal charge of 1%, charged on
certain repurchases by the Fund made within one year of purchase. If the
sales charge was included, total returns would be lower. These returns
include combined distribution and services fees of up to 1% and do not
reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the repurchases by the Fund of Fund shares.
(c) Calculation includes the proceeds from principal repayments and sales of
variable rate senior loan interests.
(d) Calculated by subtracting the Fund's total liabilities (not including the
Borrowings) from the Fund's total assets and dividing by the total number of
senior indebtedness units, where one unit equals $1,000 of senior
indebtedness.
38 See Notes to Financial Statements
VAN KAMPEN SENIOR LOAN FUND
FINANCIAL HIGHLIGHTS (UNAUDITED) continued
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE
FUND OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED JULY 31,
CLASS IB SHARES JANUARY 31, -------------------------------------------------------
2007 2006 2005 2004 2003 2002
---------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF
THE PERIOD.................... $ 9.01 $ 9.11 $ 9.00 $ 8.29 $ 8.09 $ 8.61
-------- -------- -------- -------- -------- --------
Net Investment Income (a)..... .35 .54 .37 .30 .33 .41
Net Realized and Unrealized
Gain/Loss................... .05 (.14) .08 .68 .19 (.55)
-------- -------- -------- -------- -------- --------
Total from Investment
Operations.................... .40 .40 .45 .98 .52 (.14)
-------- -------- -------- -------- -------- --------
Less:
Distributions from Net
Investment Income........... .36 .50 .34 .25 .29 .38
Return of Capital
Distributions............... -0- -0- -0- .02 .03 -0-
-------- -------- -------- -------- -------- --------
Total Distributions............. .36 .50 .34 .27 .32 .38
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF THE
PERIOD........................ $ 9.05 $ 9.01 $ 9.11 $ 9.00 $ 8.29 $ 8.09
======== ======== ======== ======== ======== ========
Total Return (b)................ 4.57%* 4.38% 5.18% 12.03% 6.58% -1.61%
Net Assets at End of the Period
(In millions)................. $1,248.2 $1,307.2 $1,639.0 $1,703.1 $1,876.1 $2,558.7
Ratios to Average Net Assets
excluding Borrowings:
Operating Expense............. 1.45% 1.39% 1.38% 1.48% 1.54% 1.43%
Interest Expense.............. 1.14% .10% .04% 0.00%(e) 0.00%(e) N/A
Total Net Expense............. 2.59% 1.49% 1.42% 1.48% 1.54% 1.43%
Net Investment Income......... 7.68% 5.87% 4.09% 3.44% 4.21% 4.85%
Portfolio Turnover (c).......... 33%* 84% 90% 94% 49% 36%
SENIOR INDEBTEDNESS:
Total Borrowing Outstanding
(In thousands).............. $440,000 $195,000 $123,000 0.00 0.00 0.00
Asset Coverage Per $1,000 Unit
of Senior Indebtedness
(d)......................... $ 5,435 $ 10,127 $ 18,767 N/A N/A N/A
</Table>
* Non-Annualized
(a) Based on average shares outstanding.
(b) Assumes reinvestment of all distributions for the period and does not
include payment of the maximum early withdrawal charge of 3%, charged on
repurchases by the Fund made within one year of purchase and declining to 0%
after the fifth year. If the sales charge was included, total returns would
be lower. These returns do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or repurchases by the Fund of
Fund shares. The early withdrawal charge was terminated effective February
18, 2005.
(c) Calculation includes the proceeds from principal repayments and sales of
variable rate senior loan interests.
(d) Calculated by subtracting the Fund's total liabilities (not including the
Borrowings) from the Fund's total assets and dividing by the total number of
senior indebtedness units, where one unit equals $1,000 of senior
indebtedness.
(e) Amount is less than 0.01%
N/A=Not Applicable
See Notes to Financial Statements 39
VAN KAMPEN SENIOR LOAN FUND
FINANCIAL HIGHLIGHTS (UNAUDITED) continued
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE
FUND OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
<Table>
<Caption>
SIX MONTHS JUNE 13, 2003
ENDED YEAR ENDED JULY 31, (COMMENCEMENT
CLASS IC SHARES JANUARY 31, ------------------------------ OF OPERATIONS)
2007 2006 2005 2004 TO JULY 31, 2003
------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF THE
PERIOD.......................... $ 9.00 $ 9.11 $ 9.00 $ 8.29 $ 8.16
-------- -------- -------- -------- --------
Net Investment Income (a)....... .35 .54 .37 .28 .04
Net Realized and Unrealized
Gain/Loss..................... .05 (.15) .07 .69 .12
-------- -------- -------- -------- --------
Total from Investment
Operations...................... .40 .39 .44 .97 .16
-------- -------- -------- -------- --------
Less:
Distributions from Net
Investment Income............. .36 .50 .33 .24 .03
Return of Capital
Distributions................. -0- -0- -0- .02 -0-
-------- -------- -------- -------- --------
Total Distributions............... .36 .50 .33 .26 .03
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF THE
PERIOD.......................... $ 9.04 $ 9.00 $ 9.11 $ 9.00 $ 8.29
======== ======== ======== ======== ========
Total Return (b).................. 4.45%** 4.50% 4.98% 11.86% 2.02%**
Net Assets at End of the Period
(In millions)................... $ 267.1 $ 291.3 $ 426.0 $ 332.0 $ 246.1
Ratios to Average Net Assets
excluding Borrowings:*
Operating Expense............... 1.45% 1.39% 1.44% 1.62% 1.56%
Interest Expense................ 1.14% .10% 0.04% 0.00%(d) 0.00%(d)
Total Net Expense............... 2.59% 1.49% 1.48% 1.62% 1.56%
Net Investment Income........... 7.68% 5.85% 4.07% 3.26% 3.89%
Portfolio Turnover (c)............ 33%** 84% 90% 94% 49%
* If certain expenses had not been voluntarily assumed by Van Kampen, total return would have been
lower and the ratios would have been as follows:
Ratios to Average Net Assets
excluding Borrowings:
Operating Expense............... 1.60% 1.54% 1.52% N/A N/A
Interest Expense................ 1.14% .10% 0.04% N/A N/A
Total Gross Expense............. 2.74% 1.64% 1.56% N/A N/A
Net Investment Income........... 7.83% 5.70% 3.99% N/A N/A
SENIOR INDEBTEDNESS:
Total Borrowing Outstanding (In
thousands).................... $440,000 $195,000 $123,000 0.00 0.00
Asset Coverage Per $1,000 Unit
of Senior Indebtedness (e).... $ 5,435 $ 10,127 $ 18,767 N/A N/A
</Table>
** Non-Annualized
(a) Based on average shares outstanding.
(b) Assumes reinvestment of all distributions for the period and does not
include payment of the maximum early withdrawal charge of 1%, charged on
repurchases by the Fund made within one year of purchase. If the sales
charge was included, total returns would be lower. These returns do not
reflect the deduction of taxes that a shareholder would pay on Fund
distributions or repurchases by the Fund of Fund shares. The early
withdrawal charge was terminated effective February 18, 2005.
(c) Calculation includes the proceeds from principal repayments and sales of
variable rate senior loan interests.
(d) Amount is less than 0.01%
(e) Calculated by subtracting the Fund's total liabilities (not including the
Borrowings) from the Fund's total assets and dividing by the total number of
senior indebtedness units, where one unit equals $1,000 of senior
indebtedness.
N/A=Not Applicable
40 See Notes to Financial Statements
VAN KAMPEN SENIOR LOAN FUND
NOTES TO FINANCIAL STATEMENTS -- JANUARY 31, 2007 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen Senior Loan Fund (the "Fund") is registered as a non-diversified,
closed-end management investment company under the Investment Company Act of
1940 (the "1940 Act"), as amended. The Fund's investment objective is to provide
a high level of current income, consistent with preservation of capital. The
Fund invests primarily in adjustable rate Senior Loans. Senior Loans are
business loans that have a senior right to payment and are made to borrowers
that may be corporations, partnerships, or other entities. These borrowers
operate in a variety of industries and geographic regions. The Fund commenced
investment operations on October 4, 1989. The Fund continuously offers Class A
Shares, Class B Shares and Class C Shares. Class IB Shares and Class IC Shares
are not continuously offered. Each class of shares differs by its initial sales
load, contingent deferred sales charges, the allocation of class-specific
expenses and voting rights on matters affecting a single class.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
A. SECURITY VALUATION The Fund's Senior Loans and notes are valued by the Fund
following valuation guidelines established and periodically reviewed by the
Fund's Board of Trustees. Under the valuation guidelines, Senior Loans and notes
for which reliable market quotes are readily available are valued at the mean of
such bid and ask quotes. Where reliable market quotes are not readily available,
Senior Loans and notes are valued, where possible, using independent market
indicators provided by independent pricing sources approved by the Board of
Trustees. Other Senior Loans and notes are valued by independent pricing sources
approved by the Board of Trustees based upon pricing models developed,
maintained and operated by those pricing sources or valued by Van Kampen Asset
Management (the "Adviser") by considering a number of factors including
consideration of market indicators, transactions in instruments which the
Adviser believes may be comparable (including comparable credit quality,
interest rate redetermination period and maturity), the credit worthiness of the
Borrower, the current interest rate, the period until the next interest rate
redetermination and the maturity of such Senior Loans. Consideration of
comparable instruments may include commercial paper, negotiable certificates of
deposit and short-term variable rate securities which have adjustment periods
comparable to the Senior Loans in the Fund's portfolio. The fair value of Senior
Loans are reviewed and approved by the Fund's Valuation Committee and Board of
Trustees.
Equity securities are valued on the basis of prices furnished by pricing
services or at fair value as determined in good faith by the Adviser under the
direction of the Board of Trustees. Credit default swaps are valued using market
quotations from brokers.
Short-term securities with remaining maturities of 60 days or less are
valued at amortized cost, which approximates market value. Short-term loan
participations are valued at cost in the absence of any indication of
impairment. The Fund may invest in repurchase agreements, which are short-term
investments in which the Fund acquires ownership of a debt security and the
seller agrees to repurchase the security at a future time and specified
41
VAN KAMPEN SENIOR LOAN FUND
NOTES TO FINANCIAL STATEMENTS -- JANUARY 31, 2007 (UNAUDITED) continued
price. Repurchase agreements are fully collateralized by the underlying debt
security. The Fund will make payment for such securities only upon physical
delivery or evidence of book entry transfer to the account of the custodian
bank. The seller is required to maintain the value of the underlying security at
not less than the repurchase proceeds due the Fund.
B. SECURITY TRANSACTIONS Investment transactions are recorded on a trade date
basis. Realized gains and losses are determined on an identified cost basis.
Legal expenditures that are expected to result in the restructuring of or a plan
of reorganization for an investment are recorded as realized losses. The Fund
may purchase and sell securities on a "when-issued" or "delayed delivery" basis
with settlement to occur at a later date. The value of the security so purchased
is subject to market fluctuations during this period. The Fund will segregate
assets with the custodian having an aggregate value at least equal to the amount
of the when-issued or delayed delivery purchase commitments until after payment
is made. At January 31, 2007, the Fund had no when-issued or delayed delivery
purchase commitments.
C. INVESTMENT INCOME Dividend income is recorded on the ex-dividend date and
interest income is recorded on an accrual basis. Facility fees on senior loans
purchased are treated as market discounts. Market premiums are amortized and
discounts are accreted over the stated life of each applicable senior loan, note
or other fixed-income security.
Other income is comprised primarily of amendment fees which are recorded
when received. Amendment fees are earned as compensation for agreeing to changes
in loan agreements. Income, expenses and realized and unrealized gains or losses
are allocated on a pro-rata basis to each class of shares except for
distribution and service fees, which are unique to each class of shares.
D. FEDERAL INCOME TAXES It is the Fund's policy to comply with the requirements
of Subchapter M of the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all of its taxable income to its
shareholders. Therefore, no provision for federal income taxes is required.
The Fund intends to utilize provisions of the federal income tax laws which
allow it to carry a realized capital loss forward for eight years following the
year of the loss and offset such losses against any future realized capital
gains. At July 31, 2006, the Fund had an accumulated capital loss carryforward
for tax purposes of $1,049,335,119, which will expire according to the following
schedule.
<Table>
<Caption>
AMOUNT EXPIRATION
$ 25,341,287................................................ July 31, 2007
28,927,103................................................ July 31, 2008
90,868,001................................................ July 31, 2009
445,144,583................................................ July 31, 2010
215,755,020................................................ July 31, 2011
153,257,861................................................ July 31, 2012
68,141,145................................................ July 31, 2013
21,900,119................................................ July 31, 2014
</Table>
42
VAN KAMPEN SENIOR LOAN FUND
NOTES TO FINANCIAL STATEMENTS -- JANUARY 31, 2007 (UNAUDITED) continued
At January 31, 2007, the cost and related gross unrealized appreciation and
depreciation are as follows:
<Table>
Cost of investments for tax purposes.................... $2,477,515,526
==============
Gross tax unrealized appreciation....................... 3,825,192
Gross tax unrealized depreciation....................... (43,987,960)
--------------
Net tax unrealized depreciation on investments.......... $ (40,162,768)
==============
</Table>
E. DISTRIBUTION OF INCOME AND GAINS The Fund declares daily and pays monthly
dividends from net investment income. Net realized gains, if any, are
distributed at least annually. Distributions from net realized gains for book
purposes may include short-term capital gains, which are included in ordinary
income for tax purposes.
The tax character of distributions paid during the year ended July 31, 2006
was as follows:
<Table>
Distributions paid from:
Ordinary income........................................... $112,254,712
Long-term capital gain.................................... -0-
------------
$112,254,712
============
</Table>
As of July 31, 2006, the component of distributable earnings on a tax basis
was as follows:
<Table>
Undistributed ordinary income............................... $5,015,308
</Table>
Net realized gains or losses may differ for financial reporting and tax
purposes primarily as a result of the deferral of losses related to wash sale
transactions.
F. CREDITS EARNED ON CASH BALANCES During the six months ended January 31, 2007,
the Fund's custody fee was reduced by $64,371 as a result of credits earned on
cash balances.
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of the Fund's Investment Advisory Agreement, the Adviser
provides investment advice and facilities to the Fund for an annual fee payable
monthly as follows:
<Table>
<Caption>
AVERAGE DAILY NET ASSETS % PER ANNUM
First $500 million.......................................... .900%
Next $1.0 billion........................................... .850%
Next $1.0 billion........................................... .825%
Next $500 million........................................... .800%
Over $3.0 billion........................................... .775%
</Table>
In addition, the Fund will pay a monthly administrative fee to Van Kampen
Funds Inc., the Fund's Administrator, at an annual rate of .25% of the average
daily net assets of the Fund. The administrative services provided by the
Administrator include monitoring the provisions of the loan agreements and any
agreements with respect to participations and
43
VAN KAMPEN SENIOR LOAN FUND
NOTES TO FINANCIAL STATEMENTS -- JANUARY 31, 2007 (UNAUDITED) continued
assignments, record keeping responsibilities with respect to interests in Senior
Loans in the Fund's portfolio and providing certain services to the holders of
the Fund's securities.
For the six months ended January 31, 2007, the Fund recognized expenses of
approximately $124,400 representing legal services provided by Skadden, Arps,
Slate, Meagher & Flom LLP, of which a trustee of the Fund is a partner of such
firm and he and his law firm provide legal services as legal counsel to the
Fund.
Under separate Legal Services and Chief Compliance Officer (CCO) Employment
agreements, the Adviser provides legal services and the CCO provides compliance
services to the Fund. The costs of these services are allocated to each fund.
For the six months ended January 31, 2007, the Fund recognized expenses of
approximately $47,000 representing Van Kampen Investments Inc.'s or its
affiliates' (collectively "Van Kampen") cost of providing legal services to the
Fund, as well as the salary, benefits and related costs of the CCO and related
support staff paid by Van Kampen. Services provided pursuant to the Legal
Services agreement are reported as part of "Professional Fees" on the Statement
of Operations. Services provided pursuant to the CCO Employment agreement are
reported as part of "Accounting and Administrative Expenses" on the Statement of
Operations.
Van Kampen Investor Services Inc. (VKIS), an affiliate of the Adviser,
serves as the shareholder servicing agent of the Fund. For the six months ended
January 31, 2007, the Fund recognized expenses of approximately $688,200
representing transfer agency fees paid to VKIS. Transfer agency fees are
determined through negotiations with the Fund's Board of Trustees.
Certain officers and trustees of the Fund are also officers and directors of
Van Kampen. The Fund does not compensate its officers or trustees who are also
officers of Van Kampen.
The Fund provides deferred compensation and retirement plans for its
trustees who are not officers of Van Kampen. Under the deferred compensation
plan, trustees may elect to defer all or a portion of their compensation to a
later date. Benefits under the retirement plan are payable upon retirement for a
ten-year period and are based upon each trustee's years of service to the Fund.
The maximum annual benefit per trustee under the plan is $2,500.
For the six months ended January 31, 2007, Van Kampen, as Distributor for
the Fund, received net commissions on sales of the Fund's Class A Shares of
approximately $113,300 and contingent deferred sales charge (CDSC) on redeemed
shares of approximately $45,600. Sales charges do not represent expenses of the
Fund.
44
VAN KAMPEN SENIOR LOAN FUND
NOTES TO FINANCIAL STATEMENTS -- JANUARY 31, 2007 (UNAUDITED) continued
During the period, the Fund owned shares of the following affiliated
companies. Affiliated companies are defined by the Investment Company Act of
1940, as amended, as those companies in which a Fund holds 5% or more of the
outstanding voting securities.
<Table>
<Caption>
INTEREST/
PAR/ DIVIDEND MARKET VALUE
NAME SHARES* INCOME 1/31/07 COST
DecorateToday.com--Common Shares........ 198,600 $ 0 $ 0 $ 3,505,909
London Fog Industries, Inc.--Common
Shares................................ 515,922 0 0 33,576,536
Neoplan USA Corp.--Revolver............. $ 933,750 0 873,056 933,750
Neoplan USA Corp.--Common Shares........ $ 8,517 0 0 85
Neoplan USA Corp.--Preferred Shares..... $ 2,262 0 0 1,074,522
Orius Corp.--Term Loan.................. $6,579,313 68,568 1,368,664 3,975,796
Orius Corp.-- Common Shares............. 1,211,236 0 0 0
Safelite Glass Corp.--Common Shares..... 724,479 0 5,433,593 3,912,187
Safelite Realty--Common Shares.......... 48,903 0 0 0
------- ---------- -----------
$68,568 $7,675,313 $46,978,785
======= ========== ===========
</Table>
* Shares were acquired through the restructuring of senior loan interests.
Affiliate transactions during the six months ended January 31, 2007 were as
follows:
<Table>
<Caption>
PAR/SHARES PAR/SHARES REALIZED
AS OF GROSS GROSS AS OF GAIN/
NAME 7/31/06 ADDITIONS REDUCTIONS 1/31/07 (LOSS)
Orius Corp., LLC,
Revolver.............. $ 2,375,171 0 $ (2,375,171) $ 0 $ 0
Safelite Glass Corp.,
Term Loan............. $13,876,959 0 $(13,876,959) 0 0
Transworld Entertainment
Corp., Common
Shares................ 2,982,699 0 (2,982,699) 0 (36,906,656)
------------
$(36,906,656)
============
</Table>
45
VAN KAMPEN SENIOR LOAN FUND
NOTES TO FINANCIAL STATEMENTS -- JANUARY 31, 2007 (UNAUDITED) continued
3. CAPITAL TRANSACTIONS
For the six months ended January 31, 2007 and the year ended July 31, 2006,
transactions were as follows:
<Table>
<Caption>
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
JANUARY 31, 2007 JULY 31, 2006
---------------------------- ----------------------------
SHARES VALUE SHARES VALUE
Sales:
Class A....................... 16,281,051 $ 146,788,966 6,742,273 $ 60,997,257
Class B....................... 915,413 8,250,004 1,080,970 9,778,004
Class C....................... 14,306,155 128,935,159 3,980,684 36,028,686
Class IB...................... 256,847 2,318,154 521,304 4,723,809
Class IC...................... 227,124 2,049,039 414,647 3,754,611
----------- ------------- ----------- -------------
Total Sales..................... 31,986,590 $ 288,341,322 12,739,878 $ 115,282,367
=========== ============= =========== =============
Dividend Reinvestment:
Class A....................... 375,905 $ 3,389,098 263,133 $ 2,380,078
Class B....................... 47,568 428,689 45,840 414,650
Class C....................... 212,163 1,912,215 174,345 1,577,151
Class IB...................... 3,240,236 29,245,014 5,101,091 46,209,105
Class IC...................... 590,428 5,326,693 1,038,754 9,405,692
----------- ------------- ----------- -------------
Total Dividend Reinvestment..... 4,466,300 $ 40,301,709 6,623,163 $ 59,986,676
=========== ============= =========== =============
Repurchases:
Class A....................... (2,398,944) (21,635,215) (2,823,718) $ (25,525,490)
Class B....................... (232,359) (2,095,665) (334,884) (3,026,298)
Class C....................... (1,353,989) (12,210,999) (2,216,956) (20,010,345)
Class IB...................... (10,700,237) (96,609,369) (40,369,751) (365,337,480)
Class IC...................... (3,638,926) (32,853,605) (15,875,976) (143,507,367)
----------- ------------- ----------- -------------
Total Repurchases............... (18,324,455) $(165,404,853) (61,621,285) $(557,406,980)
=========== ============= =========== =============
</Table>
4. INVESTMENT TRANSACTIONS
During the period, the costs of purchases and proceeds from investments sold and
repaid, excluding short-term investments, were $1,075,589,709 and $737,144,975,
respectively.
5. REPURCHASE OF SHARES
The Fund has a policy of making monthly repurchase offers ("Repurchase Offers")
for the Fund's common shares pursuant to Rule 23c-3(b) of the Investment Company
Act of 1940, as amended (the "1940 Act"); until October 2006 Repurchase Offers
have been made at quarterly intervals.
On June 23, 2006, the shareholders of the Fund approved an amendment to the
Fund's fundamental policy regarding the Fund's offer to repurchase its shares to
allow the Fund to repurchase its shares on a monthly basis. In addition, on June
7, 2006, the Fund obtained exemptive relief from the Securities and Exchange
Commission to enable the Fund to conduct monthly Repurchase Offers, subject to
certain conditions. The Fund began conducting monthly offers to repurchase its
outstanding shares commencing in October 2006.
46
VAN KAMPEN SENIOR LOAN FUND
NOTES TO FINANCIAL STATEMENTS -- JANUARY 31, 2007 (UNAUDITED) continued
The Repurchase Offers will continue to be for between 5% and 25% of the
Fund's outstanding shares; however, whereas the Fund's present intent for
quarterly offers was up to 15% during any one quarter, the Fund's present intent
for monthly offers is up to 5% (although the initial two monthly Repurchase
Offers were up to 10%, provided, however, the aggregate percentage of common
shares subject to repurchase in any 3-month period will not exceed 25%). The
repurchase request deadline will be the third Friday of each calendar month (or
the preceding business day if such third Friday is not a business day). To
accommodate monthly Repurchase Offers, the Fund has shorter notice periods
before each offer, shorter repurchase periods and shorter payment periods after
each offer. During the six months ended January 31, 2007, the Fund made one
quarterly Repurchase Offer and three monthly Repurchase Offers as follows:
During the Repurchase Offer period ended October 20, 2006 (the Request
Deadline), the Fund offered to repurchase up to 5% of the aggregate of its
outstanding shares and the total amount tendered in such Repurchase Offer
amounted to 8,973,132 shares or 4.4% of the Fund's outstanding shares. During
the Repurchase Offer period ended November 17, 2006 (the Request Deadline), the
Fund offered to repurchase up to 5% of the aggregate of its outstanding shares
and the total amount tendered in such Repurchase Offer amounted to 3,418,350
shares or 1.7% of the Fund's outstanding shares. During the Repurchase Offer
period ended December 15, 2006 (the Request Deadline), the Fund offered to
repurchase up to 5% of the aggregate of its outstanding shares and the total
amount tendered in such Repurchase Offer amounted to 2,644,408 shares or 1.3% of
the Fund's outstanding shares. During the Repurchase Offer period ended January
19, 2007 (the Request Deadline), the Fund offered to repurchase up to 5% of the
aggregate of its outstanding shares and the total amount tendered in such
Repurchase Offer amounted to 3,288,566 shares or 1.7% of the Fund's outstanding
shares.
6. COMMITMENTS
Pursuant to the terms of certain of the Senior Loan agreements, the Fund had
unfunded loan commitments of approximately $79,482,811 as of January 31, 2007.
The Fund intends to reserve against such contingent obligations by designating
cash, liquid securities, and liquid senior loans as a reserve. The unrealized
depreciation on these commitments of $1,116,740 as of January 31, 2007 is
reported as "Unfunded Commitments" on the Statement of Assets and Liabilities.
7. BORROWINGS
The Fund entered into a revolving credit and security agreement dated November
13, 2003 for an aggregate of $300,000,000, which was terminated on July 14,
2006. The proceeds of any borrowing by the Fund under this revolving credit
agreement was used for temporary liquidity purposes and funding of shareholder
repurchases.
On June 23, 2006, the shareholders of the Fund approved an amendment to the
Fund's fundamental policy regarding the Fund's use of financial leverage to
allow the Fund to use leverage to the maximum extent allowable under the
Investment Company Act of 1940, as amended. As of July 14, 2006, the Fund
entered into an Amended and Restated Revolving Credit and Security Agreement
(which in effect replaces the Fund's existing Revolving Credit and Security
Agreement dated November 13, 2003 as described above).
Under the Amended and Restated Revolving Credit and Security Agreement, the
Fund may borrow up to $700 million to finance the repurchases of shares or to
purchase additional
47
VAN KAMPEN SENIOR LOAN FUND
NOTES TO FINANCIAL STATEMENTS -- JANUARY 31, 2007 (UNAUDITED) continued
securities for investment purposes. This revolving credit agreement is secured
by the assets of the Fund.
Annual commitment fees of .13% were charged on the unused portion of both
credit lines. For the six months ended January 31, 2007, the Fund recognized
commitment fee expenses of approximately $927,500. For the six months ended
January 31, 2007, the average daily balance of borrowings under the Amended and
Restated Revolving Credit and Security Agreement dated July 14, 2006, was
$386,902,174 with a weighted average interest rate of 5.35%.
8. SENIOR LOAN PARTICIPATION COMMITMENTS
The Fund invests primarily in participations, assignments, or acts as a party to
the primary lending syndicate of a Senior Loan interest to corporations,
partnerships, and other entities. When the Fund purchases a participation of a
Senior Loan interest, the Fund typically enters into a contractual agreement
with the lender or other third party selling the participation, but not with the
borrower directly. As such, the Fund assumes the credit risk of the borrower,
selling participant or other persons interpositioned between the Fund and the
borrower.
At January 31, 2007, the following sets forth the selling participants with
respect to interests in Senior Loans purchased by the Fund on a participation
basis.
<Table>
<Caption>
PRINCIPAL
AMOUNT VALUE
SELLING PARTICIPANT (000) (000)
General Electric............................................ $5,000 $5,017
</Table>
9. DISTRIBUTION AND SERVICE PLAN
Shares of the Fund are distributed by Van Kampen Funds, Inc. ("the
Distributor"), an affiliate of the Adviser. The Fund has adopted a distribution
plan (the "Distribution Plan") with respect to each of its Class A Shares, Class
B Shares and Class C Shares and in so doing has agreed to comply with rule 12b-1
under the 1940 Act, as amended, as if the Fund were an open-end investment
company. The Fund also has adopted a service plan (the "Service Plan") with
respect to each of its Class A Shares, Class B Shares, Class C Shares and Class
IC Shares. There is no Distribution Plan or Service Plan for the Class IB Shares
and no Distribution Plan for the Class IC Shares. All service fees under the
Service Plan applicable to Class A Shares, Class B Shares, Class C Shares and
Class IC Shares are currently being waived. For the six months ended January 31,
2007, the Distributor waived service fees of $549,686. This waiver is voluntary
in nature and can be discontinued at any time. Under the Distribution Plan and
Service Plan, the Fund pays distribution fees in connection with the sale and
distribution of its Shares and service fees in connection with the provision of
ongoing services to shareholders of each such class and the maintenance of
shareholder accounts.
Under the Distribution Plan and Service Plan, the Fund may spend up to a
total of 0.25%, 1.00%, 1.00%, and 0.15% (0.25% maximum) per year of the average
daily net assets of Class A Shares, Class B Shares, Class C Shares, and Class IC
Shares, respectively. Due to voluntary fee waivers by the Distributor, the
aggregate distribution and service fees are currently 0.00%, 0.75%, 0.75%, and
0.00% per year of the average daily net assets for Class A
48
VAN KAMPEN SENIOR LOAN FUND
NOTES TO FINANCIAL STATEMENTS -- JANUARY 31, 2007 (UNAUDITED) continued
Shares, Class B Shares, Class C Shares, and Class IC Shares, respectively.
Annual fees under the Distribution Plan and Service Plan are accrued daily. The
net annual fees for Class B and Class C Shares are paid monthly to the
Distributor. The amount of distribution expenses incurred by the Distributor and
not yet reimbursed ("unreimbursed receivable") was approximately $327,100 and
$647,200 for Class B and Class C Shares, respectively. These amounts may be
recovered from future payments under the distribution plan. To the extent the
unreimbursed receivable has been fully recovered, any excess fees will be
refunded to the Fund on a quarterly basis.
10. INDEMNIFICATIONS
The Fund enters into contracts that contain a variety of indemnifications. The
Fund's maximum exposure under these arrangements is unknown. However, the Fund
has not had prior claims or losses pursuant to these contracts and expects the
risk of loss to be remote.
11. ACCOUNTING PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board (FASB) issued
Interpretation 48, Accounting for Uncertainty in Income Taxes -- an
interpretation of FASB Statement 109 (FIN 48). FIN 48 clarifies the accounting
for income taxes by prescribing the minimum recognition threshold a tax position
must meet before being recognized in the financial statements. FIN 48 is
effective for the fiscal years beginning after December 15, 2006 and is to be
applied to all open tax years as of the effective date. Recent SEC guidance
allows implementing FIN 48 in the fund NAV calculations as late as the fund's
last NAV calculation in the first required financial statement period. As a
result, the Fund will incorporate FIN 48 in its semi annual report on January
31, 2008. The impact to the Fund's financial statements, if any, is currently
being assessed.
In addition, in September 2006, Statement of Financial Accounting Standards
No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for
fiscal years beginning after November 15, 2007. SFAS 157 defines fair value,
establishes a framework for measuring fair value and expands disclosures about
fair value measurements. Management is currently evaluating the impact the
adoption of SFAS 157 will have on the Fund's financial statement disclosures.
12. DERIVATIVE FINANCIAL INSTRUMENTS
A derivative financial instrument in very general terms refers to a security
whose value is "derived" from the value of an underlying asset, reference rate
or index.
The Fund may use derivative instruments for a variety of reasons, such as to
attempt to protect the Fund against possible changes in the market value of its
portfolio or to generate potential gain. All of the Fund's portfolio holdings,
including derivative instruments, are marked to market each day with the change
in value reflected in unrealized appreciation/depreciation.
The Fund may enter into credit default swap contracts for hedging purposes
or to gain exposure to a credit in which the Fund may otherwise invest. A credit
default swap is an agreement between two parties to exchange the credit risk of
an issuer. A buyer of a credit default swap is said to buy protection by paying
periodic fees in return for a contingent payment from the seller if the issuer
has a credit event such as bankruptcy, a failure to pay
49
VAN KAMPEN SENIOR LOAN FUND
NOTES TO FINANCIAL STATEMENTS -- JANUARY 31, 2007 (UNAUDITED) continued
outstanding obligations or deteriorating credit while the swap is outstanding. A
seller of a credit default swap is said to sell protection and thus collects the
periodic fees and profits if the credit of the issuer remains stable or improves
while the swap is outstanding but the seller in a credit default swap contract
would be required to pay an agreed-upon amount, which approximates the notional
amount of the swap as disclosed in the table following the Portfolio of
Investments, to the buyer in the event of an adverse credit event of the issuer.
The Fund accrues for the periodic fees on swap contracts on a daily basis with
the net amount accrued recorded within unrealized appreciation/depreciation of
swap contracts. Upon cash settlement of the periodic fees, the net amount is
recorded as realized gain/loss on swap contracts on the Statements of
Operations. Net unrealized gains are recorded as an asset or net unrealized
losses are reported as a liability on the Statement of Assets and Liabilities.
The change in value of the swap contracts is reported as unrealized gains or
losses in the Statement of Operations.
Credit default swaps may involve greater risks than if a Fund had invested
in the issuer directly. Credit default swaps are subject to general market risk,
counterparty risk and credit risk. If there is a default by the counterparty,
the Fund will have contractual remedies pursuant to the agreements related to
the transaction.
50
VAN KAMPEN SENIOR LOAN FUND
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
AMY R. DOBERMAN
Vice President
STEFANIE V. CHANG
Vice President and Secretary
JOHN L. SULLIVAN
Chief Compliance Officer
JAMES W. GARRETT
Chief Financial Officer and Treasurer
HOWARD TIFFEN
Vice President
INVESTMENT ADVISER
VAN KAMPEN ASSET MANAGEMENT
1221 Avenue of the Americas
New York, New York 10020
DISTRIBUTOR
VAN KAMPEN FUNDS INC.
1221 Avenue of the Americas
New York, New York 10020
SHAREHOLDER SERVICING AGENT
VAN KAMPEN INVESTOR SERVICES INC.
P.O. Box 947
Jersey City, New Jersey 07303-0947
CUSTODIAN
STATE STREET BANK
AND TRUST COMPANY
One Lincoln Street
Boston, Massachusetts 02111
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 Fund, as defined in the Investment Company Act
of 1940, as amended.
51
Van Kampen Senior Loan Fund
An Important Notice Concerning Our U.S. Privacy Policy
We are required by federal law to provide you with a copy of our Privacy
Policy annually.
The following Policy applies to current and former individual clients of Van
Kampen Investments Inc., Van Kampen Asset Management, Van Kampen Advisors
Inc., Van Kampen Funds Inc., Van Kampen Investor Services Inc. and Van
Kampen Exchange Corp., as well as current and former individual investors in
Van Kampen mutual funds, unit investment trusts, and related companies.
This Policy is not applicable to partnerships, corporations, trusts or other
non-individual clients or account holders, nor is this Policy applicable to
individuals who are either beneficiaries of a trust for which we serve as
trustee or participants in an employee benefit plan administered or advised
by us. This Policy is, however, applicable to individuals who select us to
be a custodian of securities or assets in individual retirement accounts,
401(k) accounts, 529 Educational Savings Accounts, accounts subject to the
Uniform Gifts to Minors Act, or similar accounts.
Please note that we may amend this Policy at any time, and will inform you
of any changes to this Policy as required by law.
WE RESPECT YOUR PRIVACY
We appreciate that you have provided us with your personal financial
information. We strive to maintain the privacy of such information while we
help you achieve your financial objectives. This Policy describes what
non-public personal information we collect about you, why we collect it, and
when we may share it with others.
We hope this Policy will help you understand how we collect and share
non-public personal information that we gather about you. Throughout this
Policy, we refer to the non-public information that personally identifies
you or your accounts as "personal information."
1. WHAT PERSONAL INFORMATION DO WE COLLECT ABOUT YOU?
To serve you better and manage our business, it is important that we collect
and maintain accurate information about you. We may obtain this information
from applications and other forms you submit to us, from your dealings with
us, from consumer reporting agencies, from our Web sites and from third
parties and other sources.
(continued on next page)
Van Kampen Senior Loan Fund
An Important Notice Concerning Our U.S. Privacy Policy continued
For example:
-- We may collect information such as your name, address, e-mail address,
telephone/fax numbers, assets, income and investment objectives through
applications and other forms you submit to us.
-- We may obtain information about account balances, your use of
account(s) and the types of products and services you prefer to receive
from us through your dealings and transactions with us and other
sources.
-- We may obtain information about your creditworthiness and credit
history from consumer reporting agencies.
-- We may collect background information from and through third-party
vendors to verify representations you have made and to comply with
various regulatory requirements.
-- If you interact with us through our public and private Web sites, we
may collect information that you provide directly through online
communications (such as an e-mail address). We may also collect
information about your Internet service provider, your domain name,
your computer's operating system and Web browser, your use of our Web
sites and your product and service preferences, through the use of
"cookies." "Cookies" recognize your computer each time you return to
one of our sites, and help to improve our sites' content and
personalize your experience on our sites by, for example, suggesting
offerings that may interest you. Please consult the Terms of Use of
these sites for more details on our use of cookies.
2. WHEN DO WE DISCLOSE PERSONAL INFORMATION WE COLLECT ABOUT YOU?
To provide you with the products and services you request, to serve you
better and to manage our business, we may disclose personal information we
collect about you to our affiliated companies and to non-affiliated third
parties as required or permitted by law.
A. INFORMATION WE DISCLOSE TO OUR AFFILIATED COMPANIES. We do not disclose
personal information that we collect about you to our affiliated companies
except to enable them to provide services on our behalf or as otherwise
required or permitted by law.
B. INFORMATION WE DISCLOSE TO THIRD PARTIES. We do not disclose personal
information that we collect about you to non-affiliated third parties except
to enable them to provide services on our behalf, to perform joint marketing
agreements with
(continued on back)
Van Kampen Senior Loan Fund
An Important Notice Concerning Our U.S. Privacy Policy continued
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)2007 Van Kampen Funds Inc.
All rights reserved. Member NASD/SIPC.
59, 359
SLFSAR 3/07
(VAN KAMPEN INVESTMENTS LOGO) RN07-00784P-Y01/07
Item 2. Code of Ethics.
Not applicable for semi-annual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable for semi-annual reports.
Item 6. Schedule of Investments.
Please refer to Item #1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable for semi-annual reports.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable for semi-annual reports.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. Controls and Procedures
(a) The Fund's principal executive officer and principal financial officer have
concluded that the Fund's disclosure controls and procedures are sufficient to
ensure that information required to be disclosed by the Fund in this Form N-CSRS
was recorded, processed, summarized and reported within the time periods
specified in the Securities and Exchange Commission's rules and forms, based
upon such officers' evaluation of these controls and procedures as of a date
within 90 days of the filing date of the report.
(b) There were no changes in the registrant's internal control over financial
reporting that occurred during the second fiscal quarter of the period covered
by this report that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting.
Item 12. Exhibits.
(1) Code of Ethics - Not applicable for semi-annual reports.
(2)(a) A certification for the Principal Executive Officer of the registrant is
attached hereto as part of EX-99.CERT.
(2)(b) A certification for the Principal Financial Officer of the registrant is
attached hereto as part of EX-99.CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Van Kampen Senior Loan Fund
By: /s/ Ronald E. Robison
---------------------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: March 22, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed by the following
persons on behalf of the registrant and in the capacities and on the dates
indicated.
By: /s/ Ronald E. Robison
---------------------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: March 22, 2007
By: /s/ James W. Garrett
---------------------------------
Name: James W. Garrett
Title: Principal Financial Officer
Date: March 22, 2007