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 811-4269
Van Kampen Trust
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
1221 Avenue of the Americas, New York, New York 10020
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Ronald Robison
1221 Avenue of the Americas, New York, New York 10020
- --------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: 212-762-4000
Date of fiscal year end: 8/31
Date of reporting period: 2/28/07
Item 1. Report to Shareholders.
The Fund's semiannual 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 Core
Plus Fixed Income 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 February 28, 2007.
THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY A CLASS A, B, AND C
SHARE OR CLASS I 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 THE FUND WILL ACHIEVE ITS INVESTMENT
OBJECTIVE. THE FUND IS SUBJECT TO MARKET RISK, WHICH IS THE POSSIBILITY
THAT THE MARKET VALUES OF SECURITIES OWNED BY THE FUND WILL DECLINE AND,
THEREFORE, THE VALUE OF THE FUND SHARES MAY BE LESS THAN WHAT YOU PAID
FOR THEM. ACCORDINGLY, YOU CAN LOSE MONEY INVESTING IN THIS FUND.
<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 2/28/2007
<Table>
<Caption>
A SHARES B SHARES C SHARES I SHARES
since 1/26/07 since 1/26/07 since 1/26/07 since 1/26/07
- -----------------------------------------------------------------------------------------------------------
AVERAGE W/MAX W/MAX W/MAX
ANNUAL 4.75% 4.00% 1.00%
TOTAL W/O SALES SALES W/O SALES SALES W/O SALES SALES W/O SALES
RETURNS CHARGES CHARGE CHARGES CHARGE CHARGES CHARGE CHARGES
Since Inception 1.50% -3.33% 1.44% -2.56% 1.44% 0.44% 1.52%
- -----------------------------------------------------------------------------------------------------------
</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 CALL
1.800.847.2424 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 4.75 percent for Class A shares, a contingent deferred
sales charge of 4.00 percent for Class B shares (in year one and declining to
zero after year five), a contingent deferred sales charge of 1.00 percent for
Class C shares in year one, and combined Rule 12b-1 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. Class I shares are available for purchase exclusively by investors
through (i) tax-exempt retirement plans with assets of at least $1 million
(including 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit
sharing and money purchase plans, defined benefit plans and nonqualified
deferred compensation plans), (ii) fee-based investment programs with assets of
at least $1 million and (iii) institutional clients with assets of at least $1
million. Class I shares are offered without any sales charges on purchases or
sales and do not include combined Rule 12b-1 fees and service fees. Figures
shown above assume reinvestment of all dividends and capital gains. 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.
The Lehman Brothers U.S. Aggregate Bond Index is an unmanaged, broad based
market index that covers the U.S. dollar denominated, investment-grade,
fixed-rate, taxable bond market of securities. The index does not include any
expenses, fees or sales charges, which would lower performance. The index is
unmanaged and should not be considered an investment. It is not possible to
invest directly in an index.
1
Fund Report
FOR THE PERIOD SINCE INCEPTION (JANUARY 26, 2007) TO FEBRUARY 28, 2007
MARKET CONDITIONS
The environment was generally supportive for the fixed income markets during the
approximately one-month period since the fund's inception on January 26, 2007
through February 28, 2007. The Federal Open Market Committee (the "Fed") again
left the target federal funds rate on hold at its January 31 meeting.
Additionally, the Fed modified its statement about the condition of the economy
to a slightly more positive view. However, inflation levels, which continue to
be elevated but controlled, remain a key concern and will most likely have the
greatest impact on the direction of any future policy moves.
On the economic front, fourth quarter gross domestic product (GDP) was revised
lower during the month of February to an annualized 2.2 percent growth rate from
3.5 percent, but this was largely expected by the markets. Nonetheless, despite
a headwind resulting from the downturn in residential housing, the economy grew
by more than 6 percent in both 2005 and 2006. Residential housing remains under
scrutiny, but there are signs of stabilization in several markets. Other
economic data reported during the month bolstered the bond markets, including
better than expected productivity, positive consumer data, declining industrial
production and falling durable goods orders.
PERFORMANCE ANALYSIS
The fund returned 1.50 percent for the period since inception (January 26, 2007)
through February 28, 2007 (Class A shares, unadjusted for sales charges). In
comparison, the fund's benchmark, the Lehman Brothers U.S. Aggregate Bond Index,
returned 1.86 percent for the period.
TOTAL RETURN FOR THE PERIOD SINCE INCEPTION (JANUARY 26, 2007) TO FEBRUARY 28,
2007
<Table>
<Caption>
- -------------------------------------------------------------------
LEHMAN BROTHERS
U.S. AGGREGATE
CLASS A CLASS B CLASS C CLASS I BOND INDEX
1.50% 1.44% 1.44% 1.52% 1.86%
- -------------------------------------------------------------------
</Table>
The performance for the four 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 and
index definition.
U.S. Treasury yields fell between 25 and 35 basis points during February, and
our below-benchmark interest-rate sensitivity (IRS) strategy had an unfavorable
impact on performance relative to the Lehman Brothers U.S. Aggregate Bond Index.
We view the end of February rally, which was essentially a "flight-to-quality"
driven by the spillover effects of the equity volatility and sub-prime lending
situations, as a
2
short-term phenomenon. With five- and 10-year Treasury yields near 4.5 percent,
we believe real economic growth rates would need to fall below 2 percent and
inflation would have to remain benign before such yields could be construed as
offering fair value. Meanwhile, underlying economic fundamentals suggest that
growth is actually better than the market's implied forecast, supporting our
view that the fund should keep a defensive interest-rate risk posture.
Accordingly, we maintain an underweight in intermediate maturities, as we view
this part of the yield curve as being most vulnerable to an increase in real
interest rates, as well as to a change in perceptions regarding Fed policy.
Reversing recent trends, credit spreads widened slightly during February in
response to the spike in equity volatility and sub-prime lending concerns. The
financials sector bore the brunt of the sub-prime lending fallout, but other
sectors such as autos also came under pressure. As is the case with most
contractual cash flows, sub-prime loans can be securitized for eventual purchase
by institutional investors. When the underlying borrowers experience financial
distress delinquencies tend to rise. This creates a challenge for lenders who
issue and retain these loans on their balance sheets, even though there is still
underlying real estate collateral behind the loans. Relative to the Lehman
Brothers U.S. Aggregate Bond Index, the fund's below-benchmark exposure to the
credit sector had a small favorable effect on performance; however, an
opportunistic exposure to the auto sector detracted from performance, and the
net result was a near-neutral contribution to relative returns.
We maintain a modest focus on selected medium-quality credits while having
below-benchmark spread sensitivities. Additionally, we hold a small exposure to
selected below-investment grade issues.
Agency debenture yield spreads widened slightly last month, but not by enough to
allow our material sector underweight to affect relative performance. With
agency spreads mired in unattractive territory versus both Treasuries and
interest-rate swaps, we maintain significant below-benchmark sensitivities to
this sector.
Fixed-rate agency mortgage-backed securities (MBS) had a difficult month,
underperforming equal-duration Treasuries by a fair amount on a price basis.
Because of the increase in interest-rate volatility, however, option-adjusted
spreads on most fixed-rate MBS issues experienced little net movement. Our
defensive mortgage strategy had a favorable impact on relative performance in
February.
We maintain an underweight to lower-coupon issues while focusing on higher-
coupon MBS exhibiting slower-than-expected prepayment patterns. This strategy
offers value in an environment where many fixed-rate mortgages offer yield
spreads versus Treasuries below those available on comparable interest-rate swap
transactions. Despite recent market gyrations, interest-rate volatility remains
quite low; since MBS investors are selling a prepayment option to homeowners,
having a below-benchmark mortgage exposure allows clients to benefit in an
3
environment where volatility increases. The option feature of the mortgage
becomes more attractive for the option holder, and less attractive for the MBS
investor, as interest-rate volatility rises.
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.
4
<Table>
<Caption>
ASSET ALLOCATION AS OF 2/28/07
CMOs 21.1%
Corporate Bonds 6.4
Asset-Backed Securities 5.6
Foreign Government Obligations 0.4
-----
Total Long-Term Investments 33.5
Purchased Options 0.1
Total Short-Term Investments 75.3
-----
Total Investments 108.9
Liabilities in Excess of Other Assets (8.9)
-----
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 industries shown above. Asset Allocation are as a percentage
of net assets. 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. The semiannual reports and the
annual reports are filed electronically with the Securities and Exchange
Commission (SEC) on Form N-CSRS and Form N-CSR, respectively. Van Kampen
also delivers the semiannual and annual reports to 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 C Shares;
and redemption fees; 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 9/01/06 - 2/28/07.
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 or redemption fees.
Therefore, the second line of the table is useful in comparing ongoing costs
only, and will not help you determine the relative total costs of owning
different funds. In addition, if these transactional costs were included, your
cost would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
-------------------------------------------------
9/01/06 2/28/07 9/01/06-2/28/07
Class A
Actual..................................... $1,000.00 $1,015.00 $0.64
Hypothetical............................... 1,000.00 1,021.09 3.76
(5% annual return before expenses)
Class B
Actual..................................... 1,000.00 1,014.37 1.28
Hypothetical............................... 1,000.00 1,017.39 7.50
(5% annual return before expenses)
Class C
Actual..................................... 1,000.00 1,014.37 1.28
Hypothetical............................... 1,000.00 1,017.39 7.50
(5% annual return before expenses)
Class I
Actual..................................... 1,000.00 1,015.21 0.43
Hypothetical............................... 1,000.00 1,022.29 2.51
(5% annual return before expenses)
</Table>
* Expenses are equal to the Fund's annualized expense ratio of 0.75%, 1.50%,
1.50% and 0.50% for Class A, B, C and I Shares, respectively, multiplied by
the average account value over the period, multiplied by 181/365 (to reflect
the period) except for "Actual" information which reflects the period from
Commencement of Operations through February 28, 2007. These expense ratios
reflect an expense waiver.
Assumes all dividends and distributions were reinvested.
8
VAN KAMPEN CORE PLUS FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 28, 2007 (UNAUDITED)
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------
CORPORATE BONDS 6.4%
AUTOMOTIVE 0.9%
$ 40 Arvin Meritor, Inc. ....................... 8.750% 03/01/12 $ 42,200
25 DaimlerChrysler NA Holding Corp. .......... 8.500 01/18/31 31,322
40 Ford Motor Credit Co. ..................... 7.250 10/25/11 39,386
125 General Motors Acceptance Corp. ........... 6.875 09/15/11 126,622
-----------
239,530
-----------
BANKING 0.2%
50 MBNA Corp. (a)............................. 5.790 05/05/08 50,293
-----------
ELECTRIC 0.4%
50 Consumers Energy Co. ...................... 4.400 08/15/09 49,126
40 Ohio Power Co., Ser K...................... 6.000 06/01/16 41,851
-----------
90,977
-----------
FOOD/BEVERAGE 0.5%
40 FBG Finance, Ltd. (Australia) (b).......... 5.125 06/15/15 38,427
40 Pilgrim's Pride Corp. ..................... 7.625 05/01/15 39,700
45 Sara Lee Corp. ............................ 6.125 11/01/32 43,091
-----------
121,218
-----------
MEDIA-CABLE 0.7%
30 Comcast Cable Communications, Inc. ........ 7.125 06/15/13 32,876
60 Echostar DBS Corp. ........................ 6.625 10/01/14 60,750
75 Time Warner, Inc. (a)...................... 5.590 11/13/09 75,195
-----------
168,821
-----------
MEDIA-NONCABLE 0.3%
40 Interpublic Group of Cos., Inc. ........... 6.250 11/15/14 37,800
40 Viacom, Inc. .............................. 6.875 04/30/36 41,221
-----------
79,021
-----------
NATURAL GAS PIPELINES 0.0%
15 CenterPoint Energy Resource Corp. ......... 6.250 02/01/37 15,441
-----------
NONCAPTIVE-CONSUMER FINANCE 1.1%
35 American General Finance Corp. ............ 4.625 05/15/09 34,600
115 Household Finance Corp. ................... 8.000 07/15/10 125,515
75 Residential Capital Corp. ................. 6.375 06/30/10 75,712
40 SLM Corp. ................................. 4.000 01/15/10 38,902
-----------
274,729
-----------
OTHER UTILITIES 0.2%
40 Plains All American Pipeline............... 6.700 05/15/36 42,594
-----------
NATURAL GAS PIPELINES 0.3%
40 Kinder Morgan Finance Corp. (Canada)....... 5.700 01/05/16 38,136
25 Texas Eastern Transmission Corp. .......... 7.000 07/15/32 28,610
-----------
66,746
-----------
</Table>
See Notes to Financial Statements 9
VAN KAMPEN CORE PLUS FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 28, 2007 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------
RETAIL 0.4%
$ 65 CVS Lease Pass-Through Trust (b)........... 6.036% 12/10/28 $ 65,555
40 May Department Stores Co. ................. 6.700 07/15/34 40,423
-----------
105,978
-----------
SUPERMARKETS 0.1%
30 Delhaize America, Inc. .................... 9.000 04/15/31 36,188
-----------
TECHNOLOGY 0.2%
50 Hewlett-Packard Co. (a).................... 5.485 05/22/09 50,082
-----------
TEXTILES 0.1%
30 Mohawk Industries, Inc., Ser D............. 7.200 04/15/12 31,882
-----------
WIRELINE COMMUNICATIONS 1.0%
70 AT&T Corp. ................................ 8.000 11/15/31 89,130
40 France Telecom SA (France)................. 8.500 03/01/31 53,793
65 Telecom Italia Capital (Luxembourg)........ 4.875 10/01/10 63,954
50 Telefonica Europe BV (Netherlands)......... 8.250 09/15/30 62,194
-----------
269,071
-----------
TOTAL CORPORATE BONDS 6.4%..................................... 1,642,571
-----------
ASSET BACKED SECURITIES 5.6%
175 Citigroup Mortgage Loan Trust, Inc. (a).... 5.390 01/25/37 175,000
82 Countrywide Certificates (a)............... 5.520 07/25/34 82,091
196 Credit Based Asset Servicing and
Securitization LLC (a)..................... 5.390 01/25/37 196,242
175 First Franklin Mortgage Loan Certificates
(a)........................................ 5.370 03/25/37 175,000
139 First Franklin Mortgage Loan Certificates
(a)........................................ 5.390 01/25/36 139,554
128 Lehman XS Trust (a)........................ 5.620 02/25/46 128,647
169 Long Beach Mortgage Loan Trust (a)......... 5.410 01/25/36 169,410
200 Residential Asset Mortgage Products, Inc.
(a)........................................ 5.390 02/25/37 199,980
175 Residential Asset Mortgage Products, Inc.
(a)........................................ 5.580 03/25/32 175,240
-----------
TOTAL ASSET BACKED SECURITIES................................... 1,441,164
-----------
COLLATERALIZED MORTGAGE OBLIGATIONS 21.1%
175 American Home Mortgage Assets (a).......... 5.445 02/25/37 175,000
199 American Home Mortgage Trust (a)........... 5.510 12/25/46 199,104
200 Bear Stearns Commercial Mortgage
Securities, Inc. (a)....................... 5.450 02/25/37 200,000
225 Bear Stearns Mortgage Funding Trust (a).... 5.520 07/25/36 225,000
8,350 Bear Stearns Structured Products, Inc. 07/27/36 to
(b)........................................ * 02/27/37 337,209
206 Countrywide Alternative Loan Trust (a)..... 5.530 03/20/46 206,700
163 Countrywide Alternative Loan Trust (a)..... 5.550 08/25/46 163,746
178 Countrywide Alternative Loan Trust (a)..... 5.630 03/20/46 177,894
200 Deutsche Alternative-A Securities, Inc.
Mortgage Loan Trust (a).................... 5.470 02/25/47 200,000
</Table>
10 See Notes to Financial Statements
VAN KAMPEN CORE PLUS FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 28, 2007 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- ----------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED)
$ 200 DSLA Mortgage Loan Trust (a)............... 5.500% 03/19/37 $ 200,000
225 Greenpoint Mortgage Funding Trust (a)...... 5.610 02/25/36 225,112
175 Harborview Mortgage Loan Trust (a)......... 5.510 03/19/37 175,000
348 Harborview Mortgage Loan Trust (a)......... 5.520 03/19/38 348,366
162 Harborview Mortgage Loan Trust (a)......... 5.770 06/20/35 163,010
144 Lehman Brothers (a) (b).................... 5.440 09/15/21 143,941
246 Luminent Mortgage Trust (a)................ 5.520 10/25/46 246,784
395 Luminent Mortgage Trust (a)................ 5.540 12/25/36 395,276
161 Luminent Mortgage Trust (a)................ 5.600 02/25/46 161,064
250 Mortgage Equity Conversion Asset Trust (a)
(b)........................................ 5.400 02/25/42 250,000
250 Residential Accredit Loans, Inc. (a)....... 5.460 02/25/37 249,922
175 Residential Accredit Loans, Inc. (a)....... 5.520 01/25/37 174,513
200 Structured Asset Mortgage Investments, Inc.
(a)........................................ 5.510 07/25/36 200,000
198 Structured Asset Mortgage Investments, Inc.
(a)........................................ 5.520 01/25/37 198,227
125 Wachovia Bank Commercial Mortgage
Trust (a) (b).............................. 5.440 09/15/21 125,112
6,000 Washington Mutual Mortgage Pass-Through
Certificates (c)........................... * 03/25/47 88,630
175 Washington Mutual Mortgage Pass-Through
Certificates (a)........................... 5.500 01/25/47 175,000
-----------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS 21.1%................ 5,404,610
-----------
FOREIGN GOVERNMENT OBLIGATIONS 0.4%
ARS 100 Argentina International Government Bond
(Argentina)................................ 5.830 12/31/33 47,456
MXN 700 Mexican Fixed Rate Bond (Mexico)........... 9.500 12/18/14 68,231
-----------
TOTAL FOREIGN GOVERNMENT OBLIGATIONS............................ 115,687
-----------
TOTAL LONG-TERM INVESTMENTS 33.5%
(Cost $8,594,198)............................................. 8,604,032
-----------
</Table>
See Notes to Financial Statements 11
VAN KAMPEN CORE PLUS FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 28, 2007 (UNAUDITED) continued
<Table>
<Caption>
MARKET
DESCRIPTION CONTRACTS EXPIRATION DATE EXERCISE PRICE VALUE
- -----------------------------------------------------------------------------------------
PURCHASED OPTIONS 0.1%
90-day EuroDollar 50 09/21/07 94.750 $ 6,875
Futures Put, September 2007 -----------
(Cost $16,925)
SHORT-TERM INVESTMENTS 75.3%
REPURCHASE AGREEMENT 74.8%
State Street Bank & Trust Co. ($19,209,000 par collateralized by U.S.
Government obligations in a pooled cash account, interest rate of 5.12%,
dated 02/28/07, to be sold on 03/01/07 at $19,211,732)................... 19,209,000
GOVERNMENT AGENCY OBLIGATIONS 0.5%
United States Treasury Bill ($130,000 par, yielding 5.152%,
07/12/07 maturity) (d)................................................... 127,614
-----------
TOTAL SHORT-TERM INVESTMENTS
(Cost $19,336,614)....................................................... 19,336,614
-----------
TOTAL INVESTMENTS 108.9%
(Cost $27,947,737)....................................................... 27,947,521
LIABILITIES IN EXCESS OF OTHER ASSETS (8.9%).............................. (2,274,491)
-----------
NET ASSETS 100.0%......................................................... $25,673,030
===========
</Table>
Percentages are calculated as a percentage of net assets.
* Zero coupon bond
(a) Floating Rate Coupon
(b) 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.
(c) IO--Interest Only
(d) All or a portion of this security has been physically segregated in
connection with open futures contracts.
Currency Abbreviations:
ARS--Argentine peso
MXN--Mexican peso
12 See Notes to Financial Statements
VAN KAMPEN CORE PLUS FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 28, 2007 (UNAUDITED) continued
FUTURES CONTRACTS OUTSTANDING AS OF FEBRUARY 28, 2007:
<Table>
<Caption>
UNREALIZED
APPRECIATION/
CONTRACTS DEPRECIATION
LONG CONTRACTS:
U.S. Treasury Notes 10-Year Futures, June 2007
(Current Notional Value of $108,594 per contract)......... 22 $21,289
U.S. Treasury Notes 5-Year Futures, June 2007
(Current Notional Value of $105,953 per contract)......... 38 22,893
U.S. Treasury Bonds Futures, June 2007
(Current Notional Value of $112,938 per contract)......... 43 52,835
--- -------
103 $97,017
=== =======
</Table>
SWAP AGREEMENTS OUTSTANDING AS OF FEBRUARY 28, 2007:
CREDIT DEFAULT SWAPS
<Table>
<Caption>
PAY/ NOTIONAL UNREALIZED
BUY/SELL RECEIVE EXPIRATION AMOUNT APPRECIATION/
COUNTERPARTY REFERENCE ENTITY PROTECTION RATE DATE (000) DEPRECIATION
Goldman Sachs Capital
Markets, L.P. Tyco International, Ltd. Buy 0.44% 03/20/12 $225 $ (61)
Goldman Sachs Capital
Markets, L.P. The Chubb Corp. Buy 0.11 03/20/12 125 (65)
Goldman Sachs Capital
Markets, L.P. The Hartford Financial Buy 0.11 03/20/12 125 (9)
Services Group, Inc.
Goldman Sachs Capital
Markets, L.P. Motorola, Inc. Buy 0.39 03/20/12 125 139
Goldman Sachs Capital
Markets, L.P. Union Pacific Corp. Buy 0.26 03/20/12 125 93
Goldman Sachs Capital
Markets, L.P. Southwest Airlines Co. Buy 0.30 03/20/12 125 90
Goldman Sachs Capital
Markets, L.P. Lehman Brothers Buy 0.23 03/20/12 125 542
Holdings, Inc.
Goldman Sachs Capital
Markets, L.P. The Gap, Inc. Buy 1.08 03/20/12 125 196
Goldman Sachs Capital
Markets, L.P. Dell, Inc. Buy 0.22 03/20/12 65 (31)
Goldman Sachs Capital
Markets, L.P. Countrywide Home Loans, Sell 0.60 03/20/12 65 14
Inc.
Goldman Sachs Capital
Markets, L.P. Residential Capital, LLC Sell 2.00 03/20/17 65 545
------
$1,453
======
</Table>
See Notes to Financial Statements 13
VAN KAMPEN CORE PLUS FIXED INCOME FUND
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
February 28, 2007 (Unaudited)
<Table>
ASSETS:
Total Investments, including repurchase agreement of
$19,209,000 (Cost $27,947,737)............................ $27,947,521
Cash........................................................ 549
Receivables:
Investments Sold.......................................... 127,635
Interest.................................................. 34,670
Fund Shares Sold.......................................... 26,729
Expense Reimbursement from Adviser........................ 24,926
Unamortized Offering Costs.................................. 114,384
Swap Contracts.............................................. 1,453
-----------
Total Assets............................................ 28,277,867
-----------
LIABILITIES:
Payables:
Investments Purchased..................................... 2,388,492
Income Distributions...................................... 93,529
Offering Costs............................................ 61,504
Variation Margin on Futures............................... 30,130
Distributor and Affiliates................................ 15,276
Trustees' Deferred Compensation and Retirement Plans........ 1,056
Accrued Expenses............................................ 14,850
-----------
Total Liabilities....................................... 2,604,837
-----------
NET ASSETS.................................................. $25,673,030
===========
NET ASSETS CONSIST OF:
Capital (Par value of $0.01 per share with an unlimited
number of shares authorized).............................. $25,398,760
Accumulated Net Realized Gain............................... 169,711
Net Unrealized Appreciation................................. 98,238
Accumulated Undistributed Net Investment Income............. 6,321
-----------
NET ASSETS.................................................. $25,673,030
===========
MAXIMUM OFFERING PRICE PER SHARE:
Class A Shares:
Net asset value and redemption price per share (Based on
net assets of $6,599,902 and 652,877 shares of
beneficial interest issued
and outstanding)........................................ $ 10.11
Maximum sales charge (4.75%* of offering price)......... .50
-----------
Maximum offering price to public........................ $ 10.61
===========
Class B Shares:
Net asset value and offering price per share (Based on
net assets of $6,416,911 and 634,788 shares of
beneficial interest issued
and outstanding)........................................ $ 10.11
===========
Class C Shares:
Net asset value and offering price per share (Based on
net assets of $6,338,181 and 627,006 shares of
beneficial interest issued
and outstanding)........................................ $ 10.11
===========
Class I Shares:
Net asset value and offering price per share (Based on
net assets of $6,318,036 and 625,000 shares of
beneficial interest issued
and outstanding)........................................ $ 10.11
===========
</Table>
* On sales of $100,000 or more, the sales charge will be reduced.
14 See Notes to Financial Statements
VAN KAMPEN CORE PLUS FIXED INCOME FUND
FINANCIAL STATEMENTS continued
Statement of Operations
For the Period January 26, 2007 (Commencement of Operations) to February 28,
2007 (Unaudited)
<Table>
INVESTMENT INCOME:
Interest.................................................... $123,132
--------
EXPENSES:
Distribution (12b-1) and Service Fees
Class A................................................... 1,348
Class B................................................... 5,377
Class C................................................... 5,346
Offering.................................................... 10,617
Investment Advisory Fee..................................... 8,043
Shareholder Services........................................ 6,113
Shareholders Reports........................................ 5,400
Professional Fees........................................... 4,210
Registration and Filing Fees................................ 2,889
Trustees' Fees and Related Expenses......................... 1,512
Accounting and Administrative Expenses...................... 551
Custody..................................................... 248
Other....................................................... 5,519
--------
Total Expenses.......................................... 57,173
Expense Reduction....................................... 34,378
--------
Net Expenses............................................ 22,795
--------
NET INVESTMENT INCOME....................................... $100,337
========
REALIZED AND UNREALIZED GAIN/LOSS:
Realized Gain/Loss:
Investments............................................... $ (699)
Futures................................................... 170,410
--------
Net Realized Gain........................................... 169,711
--------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... -0-
--------
End of the Period:
Investments............................................. (216)
Futures................................................. 97,017
Foreign Currency Translation............................ (16)
Swap Contracts.......................................... 1,453
--------
98,238
--------
Net Unrealized Appreciation During the Period............... 98,238
--------
NET REALIZED AND UNREALIZED GAIN............................ $267,949
========
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $368,286
========
</Table>
See Notes to Financial Statements 15
VAN KAMPEN CORE PLUS FIXED INCOME FUND
FINANCIAL STATEMENTS continued
Statement of Changes in Net Assets
For the Period January 26, 2007 (Commencement of Operations) to February 28,
2007 (Unaudited)
<Table>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income....................................... $ 100,337
Net Realized Gain........................................... 169,711
Net Unrealized Appreciation During the Period............... 98,238
-----------
Change in Net Assets from Operations........................ 368,286
-----------
Distributions from Net Investment Income:
Class A Shares............................................ (25,313)
Class B Shares............................................ (21,270)
Class C Shares............................................ (21,120)
Class I Shares............................................ (26,313)
-----------
Total Distributions......................................... (94,016)
-----------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES......... 274,270
-----------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold................................... 25,398,273
Net Asset Value of Shares Issued Through Dividend
Reinvestment.............................................. 487
-----------
NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS.......... 25,398,760
-----------
TOTAL INCREASE IN NET ASSETS................................ 25,673,030
NET ASSETS:
Beginning of the Period..................................... -0-
-----------
End of the Period (Including accumulated undistributed net
investment
income of $6,321)......................................... $25,673,030
===========
</Table>
16 See Notes to Financial Statements
VAN KAMPEN CORE PLUS FIXED INCOME FUND
FINANCIAL HIGHLIGHTS (UNAUDITED)
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE SHARE OF THE FUND
OUTSTANDING THROUGHOUT THE PERIOD INDICATED.
<Table>
<Caption>
JANUARY 26, 2007
(COMMENCEMENT OF
CLASS A SHARES OPERATIONS) TO
FEBRUARY 28, 2007
-----------------
NET ASSET VALUE, BEGINNING OF THE PERIOD.................... $10.00
------
Net Investment Income (a)................................. .04
Net Realized and Unrealized Gain.......................... .11
------
Total from Investment Operations............................ .15
Less:
Distributions from Net Investment Income.................. .04
------
NET ASSET VALUE, END OF THE PERIOD.......................... $10.11
======
Total Return* (b)........................................... 1.50%**
Net Assets at End of the Period (In millions)............... $ 6.6
Ratio of Expenses to Average Net Assets*.................... .75%
Ratio of Net Investment Income to Average Net Assets........ 4.99%
Portfolio Turnover.......................................... 4%**
* If certain expenses had not been voluntarily assumed by Van Kampen, total
return would have been lower and the ratios would have been as follows:
Ratio of Expenses to Average Net Assets.................. 2.35%
Ratio of Net Investment Income to Average Net Assets..... 6.59%
</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 4.75% or contingent deferred
sales charge (CDSC). On purchases of $1 million or more, a CDSC of 1% may be
imposed on certain redemptions made within eighteen months of purchase. If
the sales charges were included, total returns would be lower. This return
includes combined Rule 12b-1 fees and service fees of up to .25% and does
not reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption of Fund shares.
See Notes to Financial Statements 17
VAN KAMPEN CORE PLUS FIXED INCOME FUND
FINANCIAL HIGHLIGHTS (UNAUDITED) continued
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE SHARE OF THE FUND
OUTSTANDING THROUGHOUT THE PERIOD INDICATED.
<Table>
<Caption>
JANUARY 26, 2007
(COMMENCEMENT OF
CLASS B SHARES OPERATIONS) TO
FEBRUARY 28, 2007
-----------------
NET ASSET VALUE, BEGINNING OF THE PERIOD.................... $10.00
------
Net Investment Income (a)................................. .03
Net Realized and Unrealized Gain.......................... .11
------
Total from Investment Operations............................ .14
Less:
Distributions from Net Investment Income.................. .03
------
NET ASSET VALUE, END OF THE PERIOD.......................... $10.11
======
Total Return* (b)........................................... 1.44%**
Net Assets at End of the Period (In millions)............... $ 6.4
Ratio of Expenses to Average Net Assets*.................... 1.50%
Ratio of Net Investment Income to Average Net Assets........ 4.24%
Portfolio Turnover.......................................... 4%**
* If certain expenses had not been voluntarily assumed by Van Kampen, total
return would have been lower and the ratios would have been as follows:
Ratio of Expenses to Average Net Assets.................. 3.11%
Ratio of Net Investment Income to Average Net Assets..... 5.85%
</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 CDSC of 4.00%, charged on certain redemptions
made within one year of purchase and declining to 0% after the fifth year.
If the sales charges were included, total returns would be lower. This
return includes combined Rule 12b-1 fees and service fees of up to 1% and
does not reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption of Fund shares.
18 See Notes to Financial Statements
VAN KAMPEN CORE PLUS FIXED INCOME FUND
FINANCIAL HIGHLIGHTS (UNAUDITED) continued
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE SHARE OF THE FUND
OUTSTANDING THROUGHOUT THE PERIOD INDICATED.
<Table>
<Caption>
JANUARY 26, 2007
(COMMENCEMENT OF
CLASS C SHARES OPERATIONS) TO
FEBRUARY 28, 2007
-----------------
NET ASSET VALUE, BEGINNING OF THE PERIOD.................... $10.00
------
Net Investment Income (a)................................. .03
Net Realized and Unrealized Gain.......................... .11
------
Total from Investment Operations............................ .14
Less:
Distributions from Net Investment Income.................. .03
------
NET ASSET VALUE, END OF THE PERIOD.......................... $10.11
======
Total Return* (b)........................................... 1.44%**
Net Assets at End of the Period (In millions)............... $ 6.3
Ratio of Expenses to Average Net Assets*.................... 1.50%
Ratio of Net Investment Income to Average Net Assets........ 4.24%
Portfolio Turnover.......................................... 4%**
* If certain expenses had not been voluntarily assumed by Van Kampen, total
return would have been lower and the ratios would have been as follows:
Ratio of Expenses to Average Net Assets.................. 3.12%
Ratio of Net Investment Income to Average Net Assets..... 5.86%
</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 CDSC of 1%, charged on certain redemptions
made within one year of purchase. If the sales charge was included, total
returns would be lower. This return includes combined Rule 12b-1 fees and
service fees of up to 1% and does not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption on Fund
shares.
See Notes to Financial Statements 19
VAN KAMPEN CORE PLUS FIXED INCOME FUND
FINANCIAL HIGHLIGHTS (UNAUDITED) continued
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE SHARE OF THE FUND
OUTSTANDING THROUGHOUT THE PERIOD INDICATED.
<Table>
<Caption>
JANUARY 26, 2007
(COMMENCEMENT OF
CLASS I SHARES OPERATIONS) TO
FEBRUARY 28, 2007
-----------------
NET ASSET VALUE, BEGINNING OF THE PERIOD.................... $10.00
------
Net Investment Income (a)................................. .04
Net Realized and Unrealized Gain.......................... .11
------
Total from Investment Operations............................ .15
Less:
Distributions from Net Investment Income.................. .04
------
NET ASSET VALUE, END OF THE PERIOD.......................... $10.11
======
Total Return* (b)........................................... 1.52%**
Net Assets at End of the Period (In millions)............... $ 6.3
Ratio of Expenses to Average Net Assets*.................... .50%
Ratio of Net Investment Income to Average Net Assets........ 5.24%
Portfolio Turnover.......................................... 4%**
* If certain expenses had not been voluntarily assumed by Van Kampen, total
return would have been lower and the ratios would have been as follows:
Ratio of Expenses to Average Net Assets.................. 2.12%
Ratio of Net Investment Income to Average Net Assets..... 6.86%
</Table>
** Non-Annualized
(a) Based on average shares outstanding.
(b) Assumes reinvestment of all distributions for the period. This return does
not reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption of Fund shares.
20 See Notes to Financial Statements
VAN KAMPEN CORE PLUS FIXED INCOME FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 28, 2007 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
The Van Kampen Core Plus Fixed Income Fund (the "Fund") is organized as a
diversified series of the Van Kampen Trust (the "Trust"), a Delaware statutory
trust, and is registered as a diversified, open-end management investment
company under the Investment Company Act of 1940 (the "1940 Act"), as amended.
The Fund's investment objective is to seek total return. The Fund invests
primarily in a diversified mix of U.S. dollar denominated investment grade fixed
income securities, particularly in U.S. government, corporate and mortgage
securities. The Fund commenced operations on January 26, 2007. The Fund offers
Class A Shares, Class B Shares, Class C Shares, and Class I Shares. 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 U.S. generally accepted
accounting principles 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 Fixed income investments are stated at value using market
quotations or indications of value obtained from an independent pricing service.
Investments in securities listed on a securities exchange are valued at their
last sale price as of the close of such securities exchange. Listed and unlisted
securities for which the last sale price is not available are valued at the mean
of the last reported bid and asked prices. For those securities where quotations
or prices are not readily available as noted above, valuations are determined in
accordance with procedures established in good faith by the Board of Trustees.
Options are valued at the last sale price. Futures contracts are valued at the
settlement price established each day on the exchange on which they are traded.
Credit default swaps are valued using market quotations obtained from brokers.
Short-term securities with remaining maturities of 60 days or less are valued at
amortized cost, which approximates market value.
B. SECURITY TRANSACTIONS Security transactions are recorded on a trade date
basis. Realized gains and losses are determined on an identified cost basis.
The 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 price.
The Fund may invest independently in repurchase agreements, or transfer
uninvested cash balances into a pooled cash account along with other investment
companies advised by Van Kampen Asset Management (the "Adviser") or its
affiliates, the daily aggregate of which is invested in repurchase agreements.
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. 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
21
VAN KAMPEN CORE PLUS FIXED INCOME FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 28, 2007 (UNAUDITED) continued
aggregate value at least equal to the amount of the when-issued or delayed
delivery purchase commitments until payment is made. At February 28, 2007, the
Fund had no when-issued or delayed delivery purchase commitments.
C. INCOME AND EXPENSES Interest income is recorded on an accrual basis.
Discounts on debt securities purchased are accreted and premiums are amortized
over the expected life of each applicable security. Income and expenses of the
Fund are allocated on a pro rata basis to each class of shares, except for
distribution and service fees and incremental transfer agency costs 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.
At February 28, 2007, the cost and related gross unrealized appreciation and
depreciation are as follows:
<Table>
Cost of investments for tax purposes........................ $27,948,153
===========
Gross tax unrealized appreciation........................... $ 27,273
Gross tax unrealized depreciation........................... (27,905)
-----------
Net tax unrealized depreciation on investments.............. $ (632)
===========
</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.
F. OFFERING COSTS Offering costs are amortized, on a straight-line basis, over a
twelve-month period.
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of the Fund's Investment Advisory Agreement, the Adviser will
provide investment advice and facilities to the Fund for an annual fee payable
monthly as follows:
<Table>
<Caption>
AVERAGE DAILY NET ASSETS % PER ANNUM
First $1 billion............................................ .375%
Over $1 billion............................................. .300%
</Table>
For the period ended February 28, 2007, the Adviser waived approximately
$34,400 of its advisory fees. The Adviser has agreed to waive all expenses in
excess of 0.75% of Class A average daily net assets, 1.50% of Class B average
daily net assets, 1.50% of Class C average daily net assets and .50% of Class I
average daily net assets. This waiver is voluntary and can be discontinued at
anytime after January 26, 2008.
For the period ended February 28, 2007, the Fund recognized expenses of
approximately $100 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.
22
VAN KAMPEN CORE PLUS FIXED INCOME FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 28, 2007 (UNAUDITED) continued
Under separate Legal Services, Accounting Services and Chief Compliance
Officer (CCO) Employment agreements, the Adviser provides accounting and legal
services and the CCO provides compliance services to the Fund. The costs of
these services are allocated to each fund. For the period ended February 28,
2007, the Fund recognized expenses of approximately $1,000 representing Van
Kampen Investments Inc.'s or its affiliates' (collectively "Van Kampen") cost of
providing accounting and 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" expenses on the Statement of Operations. Services
provided pursuant to the Accounting Services and 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 for the Fund. For the period ended
February 28, 2007, the Fund recognized expenses of approximately $5,100
representing transfer agency fees paid to VKIS. Transfer agency fees are
determined through negotiations with the Fund's Board of Trustees.
Certain officers and trustees of the Fund are also officers and trustees 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.
Amounts deferred are retained by the Fund and, to the extent permitted by the
1940 Act, as amended, may be invested in the common shares of those funds
selected by the trustees. Investments in such funds of $0 are included in
"Other" assets on the Statement of Assets and Liabilities at February 28, 2007.
Appreciation/depreciation and distributions received from these investments are
recorded with an offsetting increase/decrease in the deferred compensation
obligation and do not affect the net asset value of the Fund. 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 period ended February 28, 2007, Van Kampen, as Distributor for the
Fund, received commissions on sales of the Fund's Class A Shares of
approximately $100 and contingent deferred sales charge (CDSC) on redeemed
shares of approximately $0. Sales charges do not represent expenses of the Fund.
At February 28, 2007, Morgan Stanley Investment Management, Inc., an
affiliate of the Adviser, owned 625,000 shares of Class A, 625,000 shares of
Class B, 625,000 shares of Class C and 625,000 shares of Class I.
23
VAN KAMPEN CORE PLUS FIXED INCOME FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 28, 2007 (UNAUDITED) continued
3. CAPITAL TRANSACTIONS
For the period ended February 28, 2007, transactions were as follows:
<Table>
<Caption>
SHARES VALUES
Sales:
Class A................................................... 652,855 $ 6,530,052
Class B................................................... 634,768 6,348,221
Class C................................................... 627,000 6,270,000
Class I................................................... 625,000 6,250,000
--------- -----------
Total Sales................................................. 2,539,623 $25,398,273
========= ===========
Dividend Reinvestment:
Class A................................................... 22 $ 225
Class B................................................... 20 205
Class C................................................... 6 57
Class I................................................... 0 0
--------- -----------
Total Dividend Reinvestment................................. 48 $ 487
========= ===========
</Table>
4. REDEMPTION FEE
The Fund assesses a 2% redemption fee on the proceeds of Fund shares that are
redeemed (either by sale or exchange) within seven days of purchase. The
redemption fee is paid directly to the Fund. For the period ended February 28,
2007, the Fund did not receive any redemption fees.
5. INVESTMENT TRANSACTIONS
During the period, the cost of purchases and proceeds from sales of investments,
excluding short-term investments, were $8,820,306 and $225,173, respectively.
6. 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. Upon disposition, a
realized gain or loss is recognized accordingly, except when exercising an
options contract or taking delivery of a security underlying a futures contract.
In this instance, the recognition of gain or loss is postponed until the
disposal of the security underlying the options or futures contract. Risks may
arise as a result of the potential inability of the counterparties to meet the
terms of their contracts.
Summarized below are the specific types of derivative financial instruments
used by the Fund.
A. FUTURES CONTRACTS A futures contract is an agreement involving the delivery
of a particular asset on a specified future date at an agreed upon price. The
Fund generally invests in futures on U.S. Treasury Bonds or Notes. Upon entering
into futures contracts, the Fund
24
VAN KAMPEN CORE PLUS FIXED INCOME FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 28, 2007 (UNAUDITED) continued
maintains an amount of cash or liquid securities with a value equal to a
percentage of the contract amount with either a futures commission merchant
pursuant to rules and regulations promulgated under the 1940 Act, as amended, or
with its custodian in an account in the broker's name. This amount is known as
initial margin. During the period the futures contract is open, payments are
received from or made to the broker based upon changes in the value of the
contract (the variation margin). The risk of loss associated with a futures
contract is in excess of the variation margin reflected on the Statement of
Assets and Liabilities.
Transactions in futures contracts for the period ended February 28, 2007,
were as follows:
<Table>
<Caption>
CONTRACTS
Outstanding at January 26, 2007............................. -0-
Futures Opened.............................................. 229
Futures Closed.............................................. (126)
----
Outstanding at February 28, 2007............................ 103
====
</Table>
B. PURCHASED OPTION CONTRACTS An option contract gives the buyer the right, but
not the obligation to buy (call) or sell (put) an underlying item at a fixed
exercise (strike) price during a specified period. The Fund may purchase put and
call options. Purchasing call options tends to increase the Fund's exposure to
the underlying (or similar) instrument. Purchasing put options tends to decrease
the Fund's exposure to the underlying (or similar) instrument. The risk
associated with purchasing put and call options is limited to the premium paid.
Purchased options are reported as part of "Total Investments" on the Statement
of Assets and Liabilities. Premiums paid for purchasing options which expire are
treated as realized losses.
C. CREDIT DEFAULT SWAPS 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 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 Statement 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 on the Statement of Operations.
25
VAN KAMPEN CORE PLUS FIXED INCOME FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 28, 2007 (UNAUDITED) continued
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.
7. DISTRIBUTIONS AND SERVICE PLANS
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 pursuant
to Rule 12b-1 under the 1940 Act, as amended, and a service plan (collectively,
the "Plans") for Class A Shares, Class B Shares and Class C Shares to compensate
the Distributor for the sale, distribution, shareholder servicing and
maintenance of shareholder accounts for these shares. Under the Plans, the Fund
will incur annual fees of up to .25% of Class A average daily net assets and up
to 1.00% each of Class B and Class C average daily net assets. These fees are
accrued daily and paid to the Distributor monthly.
The amount of distribution expenses incurred by the Distributor and not yet
reimbursed ("unreimbursed receivable") was approximately $0 and $0 for Class B
and Class C Shares, respectively. These amounts may be recovered from future
payments under the distribution plan or CDSC. To the extent the unreimbursed
receivable has been fully recovered, the distribution fee is reduced.
8. LEGAL MATTERS
The Adviser and certain affiliates of the Adviser are named as defendants in a
derivative action which additionally names as defendants certain individual
trustees of certain Van Kampen funds. The named investment companies are listed
as nominal defendants. The complaint alleges that defendants caused the Van
Kampen funds to pay economic incentives to a proprietary sales force to promote
the sale of Van Kampen funds. The complaint also alleges that the Van Kampen
funds paid excessive commissions to Morgan Stanley and its affiliates in
connection with the sales of the funds. The complaint seeks, among other things,
the removal of the current trustees of the funds, rescission of the management
contracts for the funds, disgorgement of profits by Morgan Stanley and its
affiliates and monetary damages. This derivative action was coordinated with a
direct action alleging related violations of defendants' statutory disclosure
obligations and fiduciary duties with respect to the payments described above.
In addition, this derivative action was stayed by agreement of the parties
pending rulings on the motion to dismiss the direct action and the motion to
dismiss another derivative action brought by the same plaintiff that brought
this derivative action, alleging market timing and late trading in the Van
Kampen funds. In April 2006, the court granted defendants' motion to dismiss the
direct action. In June 2006, the court granted defendants' motion to dismiss the
market timing action. Accordingly, the stay on this action was lifted. Plaintiff
and defendants have agreed that this action should be dismissed in light of the
rulings dismissing the two cases discussed above. The Court has approved a
notice to shareholders regarding the dismissal.
9. 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.
26
VAN KAMPEN CORE PLUS FIXED INCOME FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 28, 2007 (UNAUDITED) continued
10. 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 semiannual report on February
29, 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.
27
VAN KAMPEN CORE PLUS FIXED INCOME 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
DENNIS SHEA
Vice President
J. DAVID GERMANY
Vice President
AMY R. DOBERMAN
Vice President
STEFANIE V. CHANG
Vice President and Secretary
JOHN L. SULLIVAN
Chief Compliance Officer
JAMES W. GARRETT
Chief Financial Officer and Treasurer
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
ERNST & YOUNG LLP
233 South Wacker Drive
Chicago, Illinois 60606
* "Interested persons" of the Fund, as defined in the Investment Company Act
of 1940, as amended.
28
Van Kampen Core Plus Fixed Income 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 Core Plus Fixed Income 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 Core Plus Fixed Income 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.
122, 222, 322, 622
CPFISAR 4/07
(VAN KAMPEN INVESTMENTS LOGO) IU07-00176P-Y02/07
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.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. Controls and Procedures
(a) The 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 Trust
By: /s/ Ronald E. Robison
----------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: April 19, 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: April 19, 2007
By: /s/ James W. Garrett
--------------------
Name: James W. Garrett
Title: Principal Financial Officer
Date: April 19, 2007