UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-4269
Van Kampen Core Plus Fixed Income Fund
(Exact name of registrant as specified in charter)
522 Fifth Avenue, New York, New York 10036
(Address of principal executive offices) (Zip code)
Ronald Robison
522 Fifth Avenue, New York, New York 10036
(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: 8/31/07
Item 1. Report to Shareholders.
The Fund's 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 Core
Plus Fixed Income Fund performed during the annual period. The portfolio
management team will provide an overview of the market conditions and
discuss some of the factors that affected investment performance during
the reporting period. In addition, this report includes the fund's
financial statements and a list of fund investments as of August 31,
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 8/31/2007
This chart compares your fund's performance to that of the Lehman Brothers U.S.
Aggregate Bond Index and from 1/31/07 (first month-end after inception) through
8/31/07. (Class A shares, adjusted for sales charges.)
(LINE GRAPH)
<Table>
<Caption>
VAN KAMPEN CORE PLUS FIXED LEHMAN BROTHERS U.S. AGGREGATE
INCOME FUND BOND INDEX
-------------------------- ------------------------------
1/07 9525.00 10000.00
9648.00 10154.00
9667.00 10155.00
9696.00 10209.00
9648.00 10132.00
9629.00 10102.00
9687.00 10186.00
8/07 9755.00 10311.00
</Table>
<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
- ----------------------------------------------------------------------------------------------------
W/MAX W/MAX W/MAX
4.75% 4.00% 1.00%
AVERAGE ANNUAL W/O SALES SALES W/O SALES SALES W/O SALES SALES W/O SALES
TOTAL RETURNS CHARGES CHARGE CHARGES CHARGE CHARGES CHARGE CHARGES
Since Inception 2.62% -2.26% 2.35% -1.64% 2.61% 1.61% 2.77%
- ----------------------------------------------------------------------------------------------------
30-Day SEC Yield 4.64% 4.05% 4.02% 5.11%
</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. As a result of recent market activity, current performance may vary
from the figures shown. 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. SEC yield is
a calculation for determining the amount of portfolio income, excluding
non-income items as prescribed by the SEC. Yields are subject to change. 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 registered with the U.S.
Securities and Exchange Commission, which includes U.S. Treasury,
government-related, corporate, mortgage-backed, asset-backed and commercial
mortgage-backed securities sectors. The index does not include any expenses,
fees or sales
1
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.
2
Fund Report
FOR THE PERIOD SINCE INCEPTION JANUARY 26, 2007 THROUGH AUGUST 31, 2007
MARKET CONDITIONS
Fears stemming from the residential housing downturn and subprime mortgage
market troubles accelerated over the course of the reporting period. With them
came growing concerns about the impact on financial markets, the financial
system, and the broader economy as a re-pricing of risk across all credit
markets put a considerable strain on liquidity.
Although the Federal Open Market Committee (the "Fed") held "official interest
rates", or the target federal funds rate, steady throughout the fiscal year, it
did respond to the problems in other ways in the latter months of the period.
The Fed issued a statement modifying its outlook to make it clear that economic
growth risks were becoming skewed to the downside. In August 2007, following
requests from a handful of district banks, it lowered the discount rate (the
rate charged to banks to borrow directly from a central bank) by half a percent,
from 6.25 percent to 5.75 percent, in an effort to encourage member banks to
make greater use of the discount window and to inject cash into the system. This
turn of events was the highlight of an eventful summer, one which brought with
it a series of negative headlines and a strong dose of unfavorable news
concerning the broader implications of the housing market downturn, especially
with regard to its effect on mortgage securities and mortgage lenders. However,
as we have seen before and will probably see again, it is our view that markets
tend to overreact and move excessively in one direction before correcting
themselves.
Clearly, the economic outlook has dimmed. Still, the Fed is on the case, and
financial markets have exhibited a bit more stability and rationality entering
September. No one can say if the worst is over, but what we do know is that some
areas of the bond market are already reflecting a set of extreme outcomes.
Throughout the period, U.S. Treasury yields fluctuated but overall,
shorter-dated Treasury yields experienced the greatest decline, while longer
dated yields were little changed. As a result, the shape of the yield curve went
from relatively flat to fairly steep. At the end of the reporting period, market
expectations were for a reduction in the federal funds rate, which could push
short-term rates even lower in the coming months. In the corporate bond market,
spreads widened causing the sector to underperform other areas of the fixed
income market for the overall period. Within the investment-grade corporate
sector, lower-rated (BBB) and higher-rated (AAA) issues outpaced middle
investment-grade issues. Utilities posted the highest returns, while financials,
hit hardest by the recent liquidity crisis, posted the lowest returns. Within
the below investment-grade sector, B-rated issues outperformed the other,
lower-rated high yield segments.
3
The mortgage market suffered from the turmoil surrounding residential housing,
and especially by its spillover effects on secondary market activity, most
notably in the non-agency mortgage area. Much of the growth in mortgage issuance
over the past few years has been in the non-agency sector. This was driven by
the development of a new array of loan types with payment and interest-rate
features appealing to a broader set of borrowers than those available in the
traditional agency space. While this helped fuel both the housing boom and a
vibrant secondary market for these non-agency mortgages, the subprime meltdown
cast a pall across the entire non-agency sector, with little regard for whether
or not the securities or loans in question were subprime or prime. The result
was a further reduction in mortgage market liquidity, as well as a sharp
diminishment in the availability of non-conforming mortgage loans to the general
public. For market participants, it became a challenge to price some of these
non-agency bonds, let alone trade them, and a process of price discovery
unfolded throughout August. While most agency mortgage-backed issues
outperformed equal-risk Treasuries, non-agency mortgage issues fared poorly in
recent months.
PERFORMANCE ANALYSIS
All share classes of Van Kampen Core Plus Fixed Income Fund underperformed the
Lehman Brothers U.S. Aggregate Bond Index for the period since inception,
January 26, 2007, through August 31, 2007, assuming no deduction of applicable
sales charges.
TOTAL RETURNS SINCE INCEPTION THROUGH AUGUST 31, 2007
<Table>
<Caption>
- -------------------------------------------------------------------
LEHMAN BROTHERS
U.S. AGGREGATE
CLASS A CLASS B CLASS C CLASS I BOND INDEX
2.62% 2.35% 2.61% 2.77% 3.44%
- -------------------------------------------------------------------
</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.
The primary contributor to the Fund's underperformance relative to its
benchmark, the Lehman Brothers U.S. Aggregate Bond Index, was its duration (a
measure of interest-rate sensitivity) positioning. During the period, we kept
the Fund's overall duration below that of the benchmark, underweighting long-
dated forward rates, while overweighting the intermediate area. While this
position detracted from performance during period of yield declines, the
position benefited performance as yields rose and the yield curve steepened. As
of the end of the period, much of this defensive position has been removed.
4
We hold an underweight position to mortgage-backed securities, with a focus on
high-coupon, slow-prepaying issues and non-agency mortgages issued to high
quality borrowers. Despite the good performance of these issues, the recent
turmoil in the mortgage market and the drying up of liquidity has hurt recent
price performance.
We have held an underweight corporate position since the inception of the Fund,
and this position detracted from relative performance in the first months.
However, as credit spreads widened in recent months, this position benefited.
While we are looking for areas to take advantage of this spread widening and add
to corporate positions, we are cautious in that we believe the credit market
remains vulnerable to potential credit downgrades and/or an economic downturn.
Within the high yield portion of the fund, an overall underweight, especially to
the lower rated segment benefited relative performance.
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.
5
<Table>
<Caption>
ASSET ALLOCATION AS OF 8/31/07
CMOs 34.2%
Mortgage Backed Securities 20.6
Asset Backed Securities 11.5
Government Obligations 7.4
Corporate Bonds 7.3
Foreign Government Obligations 0.3
-----
Total Long Term Investments 81.3
Purchased Options 0.1
Total Short-Term Investments 21.7
-----
Total Investments 103.1
Foreign Currency 0.0*
Liabilities in Excess of Other Assets (3.1)
-----
Net Assets 100.0%
</Table>
* Amount is less than 0.1%
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.
6
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 email
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.
7
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.
8
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 3/1/07 - 8/31/07.
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 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
costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
------------------------------------------------
3/1/07 8/31/07 3/1/07-8/31/07
Class A
Actual...................................... $1,000.00 $1,011.06 3.80
Hypothetical................................ 1,000.00 1,021.42 3.82
(5% annual return before expenses)
Class B
Actual...................................... 1,000.00 1,009.04 6.28
Hypothetical................................ 1,000.00 1,018.95 6.31
(5% annual return before expenses)
Class C
Actual...................................... 1,000.00 1,011.55 5.32
Hypothetical................................ 1,000.00 1,019.91 5.35
(5% annual return before expenses)
Class I
Actual...................................... 1,000.00 1,012.32 2.54
Hypothetical................................ 1,000.00 1,022.68 2.55
(5% annual return before expenses)
</Table>
* Expenses are equal to the Fund's annualized expense ratio of 0.75%, 1.24%,
1.05%, and 0.50%, for Class A, B, C, and I 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.
9
Investment Advisory Agreement Approval
Both the Investment Company Act of 1940 and the terms of the Fund's investment
advisory agreement require that the investment advisory agreement between the
Fund and its investment adviser be approved annually both by a majority of the
Board of Trustees and by a majority of the independent trustees voting
separately.
At meetings held on April 17, 2007 and May 30, 2007, the Board of Trustees, and
the independent trustees voting separately, considered and ultimately determined
that the terms of the investment advisory agreement are fair and reasonable and
approved the continuance of the investment advisory agreement as being in the
best interests of the Fund and its shareholders. In making its determination,
the Board of Trustees considered materials that were specifically prepared by
the investment adviser at the request of the Board and Fund counsel, and by an
independent provider of investment company data contracted to assist the Board,
relating to the investment advisory agreement review process. The Board also
considered information received periodically about the portfolio, performance,
the investment strategy, portfolio management team and fees and expenses of the
Fund. The Board of Trustees considered the investment advisory agreement over a
period of several months and the trustees held sessions both with the investment
adviser and separate from the investment adviser in reviewing and considering
the investment advisory agreement.
In approving the investment advisory agreement, the Board of Trustees
considered, among other things, the nature, extent and quality of the services
provided by the investment adviser, the performance, fees and expenses of the
Fund compared to other similar funds and other products, the investment
adviser's expenses in providing the services and the profitability of the
investment adviser and its affiliated companies. The Board of Trustees
considered the extent to which any economies of scale experienced by the
investment adviser are shared with the Fund's shareholders, and the propriety of
existing and alternative breakpoints in the Fund's investment advisory fee
schedule. The Board of Trustees considered comparative advisory fees of the Fund
and other investment companies and/or other products at different asset levels,
and considered the trends in the industry versus historical and projected assets
of the Fund. The Board of Trustees evaluated other benefits the investment
adviser and its affiliates derive from their relationship with the Fund. The
Board of Trustees reviewed information about the foregoing factors and
considered changes, if any, in such information since its previous approval. The
Board of Trustees discussed the financial strength of the investment adviser and
its affiliated companies and the capability of the personnel of the investment
adviser, and specifically the strength and background of its portfolio
management personnel. The Board of Trustees reviewed the statutory and
regulatory requirements for approval and disclosure of investment advisory
agreements. The Board of Trustees, including the independent trustees,
10
evaluated all of the foregoing and does not believe any single factor or group
of factors control or dominate the review process, and, after considering all
factors together, has determined, in the exercise of its business judgment, that
approval of the investment advisory agreement is in the best interests of the
Fund and its shareholders. The following summary provides more detail on certain
matters considered but does not detail all matters considered.
Nature, Extent and Quality of the Services Provided. On a regular basis, the
Board of Trustees considers the roles and responsibilities of the investment
adviser as a whole and for those specific portfolio management, support and
trading functions servicing the Fund. The trustees discuss with the investment
adviser the resources available and used in managing the Fund. The Fund
discloses information about its portfolio management team members and their
experience in its prospectus. The trustees also discuss certain other services
which are provided on a cost-reimbursement basis by the investment adviser or
its affiliates to the Van Kampen funds including certain accounting,
administrative and legal services. The Board has determined that the nature,
extent and quality of the services provided by the investment adviser support
its decision to approve the investment advisory agreement.
Performance, Fees and Expenses of the Fund. On a regular basis, the Board of
Trustees reviews the performance, fees and expenses of the Fund compared to its
peers and to appropriate benchmarks. In addition, the Board spends more focused
time on the performance of the Fund and other funds in the Van Kampen complex,
paying specific attention to underperforming funds. The trustees discuss with
the investment adviser the performance goals and the actual results achieved in
managing the Fund. When considering a fund's performance, the trustees and the
investment adviser place emphasis on trends and longer-term returns (focusing on
one-year, three-year and five-year performance with special attention to
three-year performance) and, when a fund's weighted performance is under the
fund's benchmark, they discuss the causes and where necessary seek to make
specific changes to investment strategy or investment personnel. The Fund
discloses more information about its performance elsewhere in this report and in
the Fund's prospectus. The trustees discuss with the investment adviser the
level of advisory fees for this Fund relative to comparable funds and other
products advised by the adviser and others in the marketplace. The trustees
review not only the advisory fees but other fees and expenses (whether paid to
the adviser, its affiliates or others) and the Fund's overall expense ratio. The
Fund discloses more information about its fees and expenses in its prospectus.
The Board has determined that the performance, fees and expenses of the Fund
support its decision to approve the investment advisory agreement.
Investment Adviser's Expenses in Providing the Service and Profitability. At
least annually, the trustees review the investment adviser's expenses in
providing services to the Fund and other funds advised by the investment adviser
and the profitability of the investment adviser. These profitability reports are
put
11
together by the investment adviser with the oversight of the Board. The trustees
discuss with the investment adviser its revenues and expenses, including among
other things, revenues for advisory services, portfolio management-related
expenses, revenue sharing arrangement costs and allocated expenses both on an
aggregate basis and per fund. The Board has determined that the analysis of the
investment adviser's expenses and profitability support its decision to approve
the investment advisory agreement.
Economies of Scale. On a regular basis, the Board of Trustees considers the size
and growth prospects of the Fund and how that relates to the Fund's expense
ratio and particularly the Fund's advisory fee rate. In conjunction with its
review of the investment adviser's profitability, the trustees discuss with the
investment adviser how more (or less) assets can affect the efficiency or
effectiveness of managing the Fund's portfolio and whether the advisory fee
level is appropriate relative to current and projected asset levels and/or
whether the advisory fee structure reflects economies of scale as asset levels
change. The Board has determined that its review of the actual and potential
economies of scale of the Fund support its decision to approve the investment
advisory agreement.
Other Benefits of the Relationship. On a regular basis, the Board of Trustees
considers other benefits to the investment adviser and its affiliates derived
from its relationship with the Fund and other funds advised by the investment
adviser. These benefits include, among other things, fees for transfer agency
services provided to the funds, in certain cases research received by the
adviser generated from commission dollars spent on funds' portfolio trading, and
in certain cases distribution or service related fees related to funds' sales.
The trustees review with the investment adviser each of these arrangements and
the reasonableness of its costs relative to the services performed. The Board
has determined that the other benefits received by the investment adviser or its
affiliates support its decision to approve the investment advisory agreement.
12
VAN KAMPEN CORE PLUS FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AUGUST 31, 2007
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- --------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS 34.2%
$ 149 Alliance Bancorp Trust (a).......... 5.745% 07/25/37 $ 146,116
164 American Home Mortgage Assets (a)... 5.630 03/25/47 158,222
248 American Home Mortgage Assets (a)... 5.695 06/25/47 238,846
150 American Home Mortgage Assets (a)... 5.765 10/25/46 138,942
124 American Home Mortgage Assets (a)... 5.805 06/25/47 111,260
447 American Home Mortgage Investment
Trust (a)........................... 5.695 12/25/46 to 05/25/47 435,640
210 American Home Mortgage Investment
Trust (a)........................... 5.805 09/25/45 206,271
150 Banc of America Commercial Mortgage,
Inc. (b)............................ 5.838 06/10/49 149,653
25 Banc of America Commercial Mortgage,
Inc. (b)............................ 5.867 04/10/49 25,041
100 Bear Stearns Commercial Mortgage
Securities (b)...................... 5.902 06/11/40 100,426
195 Bear Stearns Mortgage Funding Trust
(a)................................. 5.645 03/25/37 178,988
195 Bear Stearns Mortgage Funding Trust
(a)................................. 5.665 12/25/36 190,001
406 Bear Stearns Mortgage Funding Trust
(a)................................. 5.705 09/25/36 to 03/25/37 396,073
163 Bear Stearns Mortgage Funding Trust
(a)................................. 5.715 12/25/36 162,543
13,316 Bear Stearns Structured Products,
Inc. (c) (d)........................ 0.000 06/26/36 to 04/25/37 405,143
125 Citigroup Commercial Mortgage Trust
(b)................................. 5.889 12/10/49 125,440
125 Commercial Mortgage Pass-Through
Certificates (b).................... 6.010 12/10/49 126,456
3,168 Countrywide Alternative Loan Trust
(c)................................. 0.000 02/25/47 to 05/25/47 121,344
1,498 Countrywide Alternative Loan Trust
(d)................................. 0.000 12/20/46 61,871
1,779 Countrywide Alternative Loan Trust
(b) (d)............................. 2.000 04/25/47 73,392
177 Countrywide Alternative Loan Trust
(a)................................. 5.645 04/25/47 171,073
248 Countrywide Alternative Loan Trust
(a)................................. 5.675 05/25/47 241,306
192 Countrywide Alternative Loan Trust
(a)................................. 5.695 08/25/46 186,075
</Table>
See Notes to Financial Statements 13
VAN KAMPEN CORE PLUS FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AUGUST 31, 2007 continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- --------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED)
$ 367 Countrywide Alternative Loan Trust
(a)................................. 5.735% 08/25/46 to 06/25/47 $ 356,605
516 Countrywide Alternative Loan Trust
(a)................................. 5.747 03/20/46 to 09/20/46 505,585
217 Countrywide Alternative Loan Trust
(a)................................. 5.795 06/25/47 211,668
147 Countrywide Alternative Loan Trust
(a)................................. 5.847 03/20/46 143,526
150 Credit Suisse Mortgage Capital
Certificates (b).................... 5.912 06/15/39 150,544
175 Deutsche Alternative-A Securities,
Inc. Mortgage Loan Trust (a)........ 5.655 02/25/47 172,405
52 Deutsche Alternative-A Securities
NIM Trust (Cayman Islands) (c)...... 6.750 02/25/47 51,169
188 DSLA Mortgage Loan Trust (a)........ 5.718 04/19/38 182,203
271 Greenpoint Mortgage Funding Trust
(a)................................. 5.675 04/25/47 264,903
198 Greenpoint Mortgage Funding Trust
(a)................................. 5.705 03/25/47 192,513
188 Greenpoint Mortgage Funding Trust
(a)................................. 5.795 02/25/36 183,059
150 Greenwich Capital Commercial Funding
Corp. .............................. 5.444 03/10/39 147,132
155 GS Mortgage Securities Corp. (c).... 6.250 01/25/37 152,904
175 GS Mortgage Securities Corp. II
(b)................................. 5.993 08/10/45 176,684
155 Harborview Mortgage Loan Trust
(a)................................. 5.635 04/19/38 150,650
136 Harborview Mortgage Loan Trust
(a)................................. 5.685 04/19/38 132,195
258 Harborview Mortgage Loan Trust
(a)................................. 5.727 01/19/38 250,105
408 Harborview Mortgage Loan Trust
(a)................................. 5.737 10/19/37 to 03/19/38 399,396
197 Harborview Mortgage Loan Trust
(a)................................. 5.778 11/19/36 191,843
118 Harborview Mortgage Loan Trust
(a)................................. 5.988 06/20/35 116,969
171 Harborview NIM Corp. (c)............ 6.409 03/19/37 to 03/19/38 170,286
150 JP Morgan Chase Commercial Mortgage
Securities Corp. ................... 5.440 06/12/47 146,840
125 JP Morgan Chase Commercial Mortgage
Securities Corp. (b)................ 5.937 02/12/49 125,482
200 JP Morgan Chase Commercial Mortgage
Securities Corp. (b)................ 6.007 06/15/49 202,031
150 LB Commercial Conduit Mortgage Trust
(b)................................. 6.134 06/15/17 153,181
75 LB-UBS Commercial Mortgage Trust.... 5.430 02/15/40 73,451
150 LB-UBS Commercial Mortgage Trust
(b)................................. 5.858 07/15/40 150,000
203 Luminent Mortgage Trust (a)......... 5.705 10/25/46 196,825
179 Luminent Mortgage Trust (a)......... 5.725 12/25/36 174,334
</Table>
14 See Notes to Financial Statements
VAN KAMPEN CORE PLUS FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AUGUST 31, 2007 continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- --------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED)
$ 128 Luminent Mortgage Trust (a)......... 5.785% 02/25/46 $ 124,542
118 Mastr Adjustable Rate Mortgages
Trust (a)........................... 5.615 05/25/47 117,150
3,618 Residential Accredit Loans, Inc.
(c)................................. 0.000 03/25/47 to 05/25/47 159,389
244 Residential Accredit Loans, Inc.
(a)................................. 5.645 03/25/37 236,713
679 Residential Accredit Loans, Inc.
(a)................................. 5.705 01/25/37 to 05/25/47 650,094
142 Residential Asset Mortgage Products,
Inc. (a)............................ 5.575 02/25/37 141,302
195 Structured Adjustable Rate Mortgage
Loan Trust (a)...................... 5.815 07/25/35 192,578
196 Structured Asset Mortgage
Investments, Inc. (a)............... 5.695 02/25/37 195,326
177 Structured Asset Mortgage
Investments, Inc. (a)............... 5.705 01/25/37 171,867
250 Structured Asset Mortgage
Investments, Inc. (a)............... 5.745 09/25/47 250,000
154 Structured Asset Securities Corp.
(a)................................. 5.595 06/25/37 153,022
135 Structured Asset Securities Corp.
(a) (c)............................. 5.625 01/25/37 135,168
100 Wachovia Bank Commercial Mortgage
Trust............................... 5.342 12/15/43 97,183
100 Wachovia Bank Commercial Mortgage
Trust (b)........................... 5.929 06/15/49 100,198
150 Wachovia Bank Commercial Mortgage
Trust (b)........................... 6.100 02/15/51 152,923
17,103 Washington Mutual Mortgage Pass-
Through Certificates (d)............ * 01/25/45 to 03/25/47 181,044
160 Washington Mutual Mortgage Pass-
Through Certificates (a)............ 5.685 01/25/47 154,679
-----------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS 34.2%.................. 12,887,788
-----------
MORTGAGE BACKED SECURITIES 20.6%
3,600 Federal Home Loan Bank Discount
Notes............................... 0.000 09/14/07 to 09/21/07 3,593,488
118 Federal Home Loan Mortgage Corp.
(a)................................. 5.631 04/01/37 117,559
180 Federal Home Loan Mortgage Corp.
(a)................................. 5.733 01/01/37 180,824
130 Federal Home Loan Mortgage Corp.
(a)................................. 5.853 10/01/36 130,669
125 Federal Home Loan Mortgage Corp.
(a)................................. 5.878 04/01/37 125,290
72 Federal Home Loan Mortgage Corp.
(a)................................. 5.968 01/01/37 72,510
</Table>
See Notes to Financial Statements 15
VAN KAMPEN CORE PLUS FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AUGUST 31, 2007 continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- --------------------------------------------------------------------------------------------
MORTGAGE BACKED SECURITIES (CONTINUED)
$ 1,400 Federal Home Loan Mortgage Corp.
Discount Notes...................... 0.000% 09/05/07 $ 1,399,284
900 Federal National Mortgage
Association......................... 5.500 TBA 879,047
800 Federal National Mortgage
Association......................... 5.500 TBA 781,375
114 Federal National Mortgage
Association (a)..................... 6.012 04/01/37 114,766
306 Federal National Mortgage
Association (a)..................... 6.950 10/01/35 315,946
3,109 Federal National Mortgage
Association (REMIC) (d)............. 1.381 03/25/36 64,125
-----------
TOTAL MORTGAGE BACKED SECURITIES 20.6%........................... 7,774,883
-----------
ASSET BACKED SECURITIES 11.5%
125 American Express Credit Account
Master Trust (a).................... 5.611 10/15/12 124,189
150 Capital Auto Receivables Asset Trust
(a)................................. 5.621 11/15/11 149,914
475 Capital Auto Receivables Asset Trust
(a)................................. 5.671 07/15/10 to 05/15/11 474,785
129 Carrington Mortgage Loan Trust
(a)................................. 5.625 02/25/37 127,774
150 Citibank Credit Card Issuance Trust
(a)................................. 5.350 03/22/12 149,073
250 Citibank Credit Card Issuance Trust
(a)................................. 5.530 02/07/10 250,090
144 Citigroup Mortgage Loan Trust, Inc.
(a)................................. 5.575 01/25/37 143,633
20 Countrywide Certificates (a)........ 5.705 07/25/34 19,865
170 Credit Based Asset Servicing and
Securitization LLC (a).............. 5.575 01/25/37 168,242
44 CVS Lease Pass-Through Trust (c).... 6.036 12/10/28 43,459
154 First Franklin Mortgage Loan
Certificates (a).................... 5.555 03/25/37 152,522
45 First Franklin Mortgage Loan
Certificates (a).................... 5.575 01/25/36 45,408
350 Ford Credit Auto Owner Trust (a).... 5.621 04/15/10 349,872
161 GSAMP Trust (a)..................... 5.575 01/25/37 159,450
173 GSAMP Trust (a)..................... 5.625 03/25/47 171,081
104 Indymac Residential Asset Backed
Trust (a)........................... 5.635 04/25/37 103,363
107 Lehman XS Trust (a)................. 5.805 02/25/46 103,943
99 Long Beach Mortgage Loan Trust (a).. 5.595 01/25/46 98,581
</Table>
16 See Notes to Financial Statements
VAN KAMPEN CORE PLUS FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AUGUST 31, 2007 continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- --------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES (CONTINUED)
$ 150 MBNA Credit Card Master Note Trust
(a)................................. 5.751% 02/16/10 $ 149,999
144 Nationstar Home Equity Loan Trust
(a)................................. 6.205 09/25/36 143,662
149 Novastar Home Equity Loan (a)....... 5.575 11/25/36 148,225
107 Residential Asset Mortgage Products,
Inc. (a)............................ 5.765 03/25/32 104,777
114 Residential Asset Securities Corp.
(a)................................. 5.615 04/25/37 112,677
133 Securitized Asset Backed Receivables
LLC (a)............................. 5.615 02/25/37 131,714
140 Securitized Asset Backed Receivables
LLC (a)............................. 5.635 05/25/37 138,629
222 SLM Student Loan Trust (a).......... 5.350 10/27/14 222,151
128 Soundview Home Equity Loan Trust
(a)................................. 5.585 06/25/37 126,315
136 Soundview Home Equity Loan Trust
(a)................................. 5.615 02/25/37 134,357
111 Structured Asset Securities Corp.
(a)................................. 5.595 02/25/37 109,868
-----------
TOTAL ASSET BACKED SECURITIES 11.5%.............................. 4,357,618
-----------
GOVERNMENT OBLIGATIONS 7.4%
100 United States Treasury Bond......... 4.500 02/15/36 94,672
1,100 United States Treasury Bond......... 5.375 02/15/31 1,179,321
700 United States Treasury Bond......... 6.125 08/15/29 818,070
450 United States Treasury Note......... 2.625 05/15/08 444,411
250 United States Treasury Note......... 6.000 08/15/09 258,477
-----------
TOTAL GOVERNMENT OBLIGATIONS...................................... 2,794,951
-----------
CORPORATE BONDS 7.3%
AUTOMOTIVE 0.6%
40 ArvinMeritor, Inc. ................. 8.750 03/01/12 39,800
30 DaimlerChrysler NA LLC.............. 8.500 01/18/31 37,219
40 Ford Motor Credit Co. .............. 7.250 10/25/11 36,496
125 General Motors Acceptance Corp. .... 6.875 09/15/11 111,577
-----------
225,092
-----------
BANKING 1.2%
50 MBNA Corp. (a)...................... 5.790 05/05/08 50,145
55 Nationwide Building Society (United
Kingdom) (c)........................ 4.250 02/01/10 54,100
100 Unicredito Luxembourg Finance SA
(Luxembourg) (a) (c)................ 5.410 10/24/08 100,031
80 USB Capital IX (b).................. 6.189 04/15/42 80,395
160 Wachovia Capital Trust III (b)...... 5.800 08/29/49 159,725
-----------
444,396
-----------
</Table>
See Notes to Financial Statements 17
VAN KAMPEN CORE PLUS FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AUGUST 31, 2007 continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- --------------------------------------------------------------------------------------------
BROKERAGE 0.2%
$ 75 Goldman Sachs Capital II (b)........ 5.793% 12/29/49 $ 68,890
-----------
DIVERSIFIED MANUFACTURING 0.2%
70 Brookfield Asset Management, Inc.
(Canada)............................ 5.800 04/25/17 70,415
-----------
ELECTRIC 1.0%
10 Appalachian Power Co. .............. 5.650 08/15/12 10,105
40 Arizona Public Service Co. ......... 5.800 06/30/14 39,845
50 Consumers Energy Co. ............... 4.400 08/15/09 49,137
35 Detroit Edison Co. ................. 6.125 10/01/10 36,023
20 Entergy Gulf States, Inc. (a)....... 5.980 12/01/09 19,824
50 Entergy Gulf States, Inc. (a) (c)... 6.474 12/08/08 50,150
75 NiSource Finance Corp. ............. 7.875 11/15/10 79,716
55 Ohio Power Co., Ser K............... 6.000 06/01/16 55,860
45 Union Electric Co. ................. 6.400 06/15/17 46,757
-----------
387,417
-----------
FOOD/BEVERAGE 0.5%
40 ConAgra, Inc. ...................... 7.000 10/01/28 41,781
40 FBG Finance, Ltd. (Australia) (c)... 5.125 06/15/15 37,852
40 Pilgrim's Pride Corp. .............. 7.625 05/01/15 40,100
50 YUM! Brands, Inc. .................. 8.875 04/15/11 55,706
-----------
175,439
-----------
LIFE INSURANCE 0.1%
25 Platinum Underwriters Finance,
Inc. ............................... 7.500 06/01/17 26,677
-----------
MEDIA-CABLE 0.5%
30 Comcast Cable Communications,
Inc. ............................... 7.125 06/15/13 31,957
20 Comcast Corp. ...................... 6.500 01/15/15 20,660
60 Echostar DBS Corp. ................. 6.625 10/01/14 58,200
75 Time Warner, Inc. (a)............... 5.730 11/13/09 74,404
-----------
185,221
-----------
MEDIA-NONCABLE 0.2%
40 Interpublic Group of Cos., Inc. .... 6.250 11/15/14 35,800
40 Viacom, Inc. ....................... 6.875 04/30/36 39,071
-----------
74,871
-----------
NONCAPTIVE-CONSUMER FINANCE 0.5%
35 American General Finance Corp. ..... 4.625 05/15/09 34,798
15 Household Finance Corp. ............ 6.375 10/15/11 15,415
115 Household Finance Corp. ............ 8.000 07/15/10 123,184
40 SLM Corp. .......................... 4.000 01/15/10 37,116
-----------
210,513
-----------
</Table>
18 See Notes to Financial Statements
VAN KAMPEN CORE PLUS FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AUGUST 31, 2007 continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- --------------------------------------------------------------------------------------------
NONCAPTIVE-DIVERSIFIED
FINANCE 0.1%
$ 40 Capmark Financial Group, Inc. (c)... 5.875% 05/10/12 $ 35,461
20 Capmark Financial Group, Inc. (c)... 6.300 05/10/17 16,273
-----------
51,734
-----------
PHARMACEUTICALS 0.1%
55 Hospira, Inc. (a)................... 5.840 03/30/10 55,171
-----------
PIPELINES 0.4%
15 Centerpoint Energy Resource
Corp. .............................. 6.250 02/01/37 14,931
10 CenterPoint Energy Resources
Corp. .............................. 7.875 04/01/13 10,941
55 Kinder Morgan Finance
Corp. (Canada)...................... 5.700 01/05/16 49,042
40 Plains All American Pipeline........ 6.700 05/15/36 39,970
25 Texas Eastern Transmission Corp. ... 7.000 07/15/32 27,669
-----------
142,553
-----------
PROPERTY & CASUALTY INSURANCE 0.3%
100 Farmers Exchange Capital (c)........ 7.050 07/15/28 101,042
-----------
RAILROADS 0.2%
60 Union Pacific Corp. ................ 5.450 01/31/13 60,000
-----------
RETAILERS 0.3%
55 CVS Caremark Corp. ................. 5.750 06/01/17 53,852
70 Home Depot, Inc. (a)................ 5.485 12/16/09 69,180
-----------
123,032
-----------
SUPERMARKETS 0.2%
55 Delhaize America, Inc. ............. 9.000 04/15/31 64,625
15 Kroger Co. ......................... 6.400 08/15/17 15,348
-----------
79,973
-----------
WIRELINE 0.7%
75 AT&T Corp. ......................... 8.000 11/15/31 89,507
50 France Telecom SA (France).......... 8.500 03/01/31 64,023
65 Telecom Italia Capital
(Luxembourg)........................ 4.875 10/01/10 63,895
50 Telefonica Europe BV
(Netherlands)....................... 8.250 09/15/30 58,805
-----------
276,230
-----------
TOTAL CORPORATE BONDS 7.3%....................................... 2,758,666
</Table>
See Notes to Financial Statements 19
VAN KAMPEN CORE PLUS FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AUGUST 31, 2007 continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- --------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT OBLIGATIONS 0.3%
ARS 42 Argentina International Government
Bond (Argentina).................... 8.280% 12/31/33 $ 35,839
MXN 700 Mexican Fixed Rate Bond (Mexico).... 9.500 12/18/14 69,441
-----------
TOTAL FOREIGN GOVERNMENT OBLIGATIONS.............................. 105,280
-----------
TOTAL LONG-TERM INVESTMENTS 81.3%
(Cost $31,128,511).............................................. 30,679,186
</Table>
<Table>
<Caption>
MARKET
DESCRIPTION CONTRACTS EXPIRATION DATE EXERCISE PRICE VALUE
- -----------------------------------------------------------------------------------------
PURCHASED OPTIONS 0.1%
90-day EuroDollar
Futures Put, March 2008.....
102 03/14/08 94.750 $ 17,850
90-day EuroDollar
Futures Put, March 2008.....
17 03/14/08 94.500 956
-----------
TOTAL PURCHASED OPTIONS
(Cost $26,452)........................................................... 18,806
-----------
SHORT-TERM INVESTMENTS 21.7%
REPURCHASE AGREEMENTS 1.2%
Banc of America Securities ($148,223 par collateralized by U.S. Government
obligations in a pooled cash account, interest rate of 5.30%, dated
08/31/07, to be sold on 09/04/07 at $148,311)............................ 148,223
Citigroup Global Markets, Inc. ($131,754 par collateralized by U.S.
Government obligations in a pooled cash account, interest rate of 5.25%,
dated 08/31/07, to be sold on 09/04/07 at $131,831)...................... 131,754
State Street Bank & Trust Co. ($160,023 par collateralized by U.S.
Government obligations in a pooled cash account, interest rate of 4.83%,
dated 08/31/07, to be sold on 09/04/07 at $160,108)...................... 160,023
-----------
TOTAL REPURCHASE AGREEMENTS................................................ 440,000
-----------
COMMERCIAL PAPER 16.0%
Abbey National PLC ($500,000 par, yielding 5.470%, 09/04/07 maturity)...... 499,782
Bank of Nova Scotia ($900,000 par, yielding 5.470%, 09/04/07 maturity)..... 899,605
BNP Paribas, Inc. ($500,000 par, yielding 5.536%, 09/13/07 maturity)....... 499,079
Citigroup Funding, Inc. ($900,000 par, yielding 5.470%, 10/02/07
maturity)................................................................ 895,924
General Electric Capital Corp. ($900,000 par, yielding 5.470%, 09/12/07
maturity)................................................................ 898,554
Goldman Sachs Group, Inc. ($250,000 par, yielding 5.470%, 09/05/07
maturity)................................................................ 249,853
</Table>
20 See Notes to Financial Statements
VAN KAMPEN CORE PLUS FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AUGUST 31, 2007 continued
<Table>
<Caption>
DESCRIPTION VALUE
- -----------------------------------------------------------------------------------------
COMMERCIAL PAPER (CONTINUED)
Lloyd Bank PLC ($1,100,000 par, yielding 5.470%, 09/13/07 maturity)........ $ 1,098,024
Rabobank USA Financial Corp. ($1,000,000 par, yielding 5.470%, 09/05/07
maturity)................................................................ 999,394
-----------
TOTAL COMMERCIAL PAPER 16.0%.............................................. 6,040,215
-----------
CERTIFICATES OF DEPOSIT 4.2%
UBS AG Stamford Branch ($500,000 par, yielding 5.650%, 09/24/07
maturity)................................................................ 499,999
Wells Fargo Bank NA ($1,100,000 par, yielding 5.640%, 09/24/07 maturity)... 1,100,000
-----------
TOTAL CERTIFICATES OF DEPOSIT.............................................. 1,599,999
-----------
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS 0.3%
United States Treasury Bill ($130,000 par, yielding 5.049%, 01/10/08
maturity) (e)............................................................ 127,708
-----------
TOTAL SHORT-TERM INVESTMENTS 21.7%
(Cost $8,207,922)........................................................ 8,207,922
TOTAL INVESTMENTS 103.1%
(Cost $39,362,885)....................................................... 38,905,914
FOREIGN CURRENCY 0.0%
(Cost $664).............................................................. 653
LIABILITIES IN EXCESS OF OTHER ASSETS (3.1%).............................. (1,154,454)
-----------
NET ASSETS 100.0%......................................................... $37,752,113
===========
</Table>
Percentages are calculated as a percentage of net assets.
* Zero coupon bond
(a) Floating Rate Coupon
(b) Variable Rate Coupon
(c) 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.
(d) IO--Interest Only
(e) All of a portion of this security has been physically segregated in
connection with open futures contracts.
REMIC--Real Estate Mortgage Investment Conduits
See Notes to Financial Statements 21
VAN KAMPEN CORE PLUS FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AUGUST 31, 2007 continued
TBA--To be announced, maturity date has not yet been established. Upon
settlement and delivery of the mortgage pools, maturity dates will be assigned.
Currency Abbreviations:
ARS--Argentine peso
MXN--Mexican peso
FUTURES CONTRACTS OUTSTANDING AS OF AUGUST 31, 2007:
<Table>
<Caption>
UNREALIZED
APPRECIATION/
CONTRACTS DEPRECIATION
LONG CONTRACTS:
EuroDollar Futures, March 2009 (Current Notional Value of
$238,363 per contract).................................... 10 $ 15,985
EuroDollar Futures, December 2008 (Current Notional Value of
$238,500 per contract).................................... 10 16,118
EuroDollar Futures, June 2008 (Current Notional Value of
$238,613 per contract).................................... 10 16,923
EuroDollar Futures, March 2008 (Current Notional Value of
$238,400 per contract).................................... 10 15,923
EuroDollar Futures, September 2008 (Current Notional Value
of $238,600 per contract)................................. 10 16,548
EuroDollar Futures, September 2007 (Current Notional Value
of $236,231 per contract)................................. 10 (4,140)
EuroDollar Futures, December 2007 (Current Notional Value of
$237,663 per contract).................................... 10 9,923
U.S. Treasury Notes 2-Year Futures, December 2007 (Current
Notional Value of $206,156 per contract).................. 25 1,135
U.S. Treasury Notes 5-Year Futures, December 2007 (Current
Notional Value of $106,703 per contract).................. 64 21,829
U.S. Treasury Notes 10-Year Futures, December 2007 (Current
Notional Value of $109,047 per contract).................. 16 11,482
SHORT CONTRACTS:
U.S. Treasury Bond Futures, September 2007 (Current Notional
Value of $111,781 per contract)........................... 2 (3,339)
U.S. Treasury Bond Futures, December 2007 (Current Notional
Value of $111,563 per contract)........................... 32 (11,047)
U.S. Treasury Notes 10-Year Futures, September 2007 (Current
Notional Value of $109,484 per contract).................. 2 (1,299)
--- --------
211 $106,041
=== ========
</Table>
22 See Notes to Financial Statements
VAN KAMPEN CORE PLUS FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AUGUST 31, 2007 continued
SWAP AGREEMENTS OUTSTANDING AS OF AUGUST 31, 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. Dell, Inc. Buy 0.22% 03/20/12 $ 65 $ (5)
Goldman Sachs Capital Markets,
L.P. Motorola, Inc. Buy 0.39 03/20/12 125 (132)
Goldman Sachs Capital Markets,
L.P. The Chubb Corp. Buy 0.11 03/20/12 125 1,437
Goldman Sachs Capital Markets,
L.P. The Gap, Inc. Buy 1.08 03/20/12 125 (907)
Goldman Sachs Capital Markets,
L.P. The Hartford Financial Buy 0.11 03/20/17 125 1,368
Services Group, Inc.
Goldman Sachs Capital Markets,
L.P. Tyco International, Ltd. Buy 0.44 03/20/12 225 894
Goldman Sachs Capital Markets,
L.P. Union Pacific Corp. Buy 0.26 03/20/12 65 170
J.P. Morgan Chase Bank, Co. Belo Corp. Buy 1.18 06/20/14 30 (239)
J.P. Morgan Chase Bank, Co. Belo Corp. Buy 1.30 06/20/14 90 (1,339)
-------
TOTAL CREDIT DEFAULT SWAPS $ 1,247
=======
</Table>
INTEREST RATE SWAPS
<Table>
<Caption>
PAY/
RECEIVE NOTIONAL UNREALIZED
FLOATING FIXED EXPIRATION AMOUNT APPRECIATION/
COUNTERPARTY FLOATING RATE INDEX RATE RATE DATE (000) DEPRECIATION
Citibank, N.A. USD-LIBOR BBA Pay 5.333% 05/22/17 $ 750 $ 16,393
Citibank, N.A. USD-LIBOR BBA Pay 5.368 05/23/17 750 18,236
Citibank, N.A. USD-LIBOR BBA Pay 5.414 05/25/17 1,725 47,637
Citibank, N.A., USD-LIBOR BBA Pay 5.440 05/29/17 1,175 35,079
Goldman Sachs Capital Markets, L.P. USD-LIBOR BBA Pay 5.341 05/24/17 900 19,692
JP Morgan Chase Bank, Co. USD-LIBOR BBA Pay 5.371 05/23/17 750 18,415
JP Morgan Chase Bank, Co. USD-LIBOR BBA Pay 5.340 05/24/17 900 19,664
JP Morgan Chase Bank, Co. USD-LIBOR BBA Pay 5.448 05/29/17 1,175 35,820
--------
TOTAL INTEREST RATE SWAPS 210,936
--------
TOTAL SWAP AGREEMENTS $212,183
========
</Table>
See Notes to Financial Statements 23
VAN KAMPEN CORE PLUS FIXED INCOME FUND
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
August 31, 2007
<Table>
ASSETS:
Total Investments (Cost $39,362,885)........................ $38,905,914
Foreign Currency (Cost $664)................................ 653
Cash........................................................ 484
Receivables:
Investments Sold.......................................... 903,419
Fund Shares Sold.......................................... 307,063
Interest.................................................. 114,027
Swap Contracts.............................................. 214,805
Unamortized Offering Costs.................................. 121,911
Other....................................................... 4,964
-----------
Total Assets............................................ 40,573,240
-----------
LIABILITIES:
Payables:
Investments Purchased..................................... 2,608,504
Fund Shares Repurchased................................... 58,158
Income Distributions...................................... 47,253
Variation Margin on Futures............................... 31,671
Distributor and Affiliates................................ 25,608
Investment Advisory Fee................................... 11,011
Swap Contracts.............................................. 2,622
Trustees' Deferred Compensation and Retirement Plans........ 7,230
Accrued Expenses............................................ 29,070
-----------
Total Liabilities....................................... 2,821,127
-----------
NET ASSETS.................................................. $37,752,113
===========
NET ASSETS CONSIST OF:
Capital (Par value of $0.01 per share with an unlimited
number of shares authorized).............................. $37,680,241
Accumulated Undistributed Net Investment Income............. 371,145
Net Unrealized Depreciation................................. (138,769)
Accumulated Net Realized Loss............................... (160,504)
-----------
NET ASSETS.................................................. $37,752,113
===========
MAXIMUM OFFERING PRICE PER SHARE:
Class A Shares:
Net asset value and redemption price per share (Based on
net assets of $28,664,700 and 2,872,386 shares of
beneficial interest issued and outstanding)............. $ 9.98
Maximum sales charge (4.75%* of offering price)......... 0.50
-----------
Maximum offering price to public........................ $ 10.48
===========
Class B Shares:
Net asset value and offering price per share (Based on
net assets of $1,511,645 and 151,327 shares of
beneficial interest issued and outstanding)............. $ 9.99
===========
Class C Shares:
Net asset value and offering price per share (Based on
net assets of $1,960,130 and 195,851 shares of
beneficial interest issued and outstanding)............. $ 10.01
===========
Class I Shares:
Net asset value and offering price per share (Based on
net assets of $5,615,638 and 562,452 shares of
beneficial interest issued and outstanding)............. $ 9.98
===========
</Table>
* On sales of $100,000 or more, the sales charge will be reduced.
24 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 August 31, 2007
<Table>
INVESTMENT INCOME:
Interest.................................................... $1,176,236
----------
EXPENSES:
Offering Cost............................................... 75,006
Investment Advisory Fee..................................... 66,514
Distribution (12b-1) and Service Fees
Class A................................................... 19,190
Class B................................................... 24,698
Class C................................................... 19,524
Professional Fees........................................... 56,473
Shareholder Reports......................................... 35,536
Accounting and Administrative Expenses...................... 33,658
Custody..................................................... 13,776
Transfer Agent Fees......................................... 12,401
Registration and Filing Fees................................ 12,335
Trustees' Fees and Related Expenses......................... 11,407
Other....................................................... 16,460
----------
Total Expenses.......................................... 396,978
Expense Reduction....................................... 242,121
Less Credits Earned on Cash Balances.................... 2,760
----------
Net Expenses............................................ 152,097
----------
NET INVESTMENT INCOME....................................... $1,024,139
==========
REALIZED AND UNREALIZED GAIN/LOSS:
Realized Gain/Loss:
Futures................................................... $ 40,231
Foreign Currency.......................................... (842)
Investments............................................... (66,334)
Swap Contracts............................................ (136,752)
----------
Net Realized Loss........................................... (163,697)
----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... -0-
----------
End of the Period:
Swap Contracts.......................................... 212,183
Futures................................................. 106,041
Foreign Currency Translation............................ (22)
Investments............................................. (456,971)
----------
(138,769)
----------
Net Unrealized Depreciation During the Period............... (138,769)
----------
NET REALIZED AND UNREALIZED LOSS............................ $ (302,466)
==========
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $ 721,673
==========
</Table>
See Notes to Financial Statements 25
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 August 31, 2007
<Table>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income....................................... $ 1,024,139
Net Realized Loss........................................... (163,697)
Net Unrealized Depreciation During the Period............... (138,769)
------------
Change in Net Assets from Operations........................ 721,673
------------
Distributions from Net Investment Income:
Class A Shares............................................ (364,139)
Class B Shares............................................ (130,325)
Class C Shares............................................ (132,799)
Class I Shares............................................ (176,006)
------------
Total Distributions......................................... (803,269)
------------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES......... (81,596)
------------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold................................... 53,440,447
Net Asset Value of Shares Issued Through Dividend
Reinvestment.............................................. 218,314
Cost of Shares Repurchased.................................. (15,825,052)
------------
NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS.......... 37,833,709
------------
TOTAL INCREASE IN NET ASSETS................................ 37,752,113
NET ASSETS:
Beginning of the Period..................................... -0-
------------
End of the Period (Including accumulated undistributed net
investment income of $371,145)............................ $ 37,752,113
============
</Table>
26 See Notes to Financial Statements
VAN KAMPEN CORE PLUS FIXED INCOME FUND
FINANCIAL HIGHLIGHTS
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
AUGUST 31, 2007
----------------
NET ASSET VALUE, BEGINNING OF THE PERIOD.................... $10.00
------
Net Investment Income (a)............................... 0.36
Net Realized and Unrealized Loss........................ (0.10)
------
Total from Investment Operations............................ 0.26
Less:
Distributions from Net Investment Income................ 0.28
------
NET ASSET VALUE, END OF THE PERIOD.......................... $ 9.98
======
Total Return* (b)........................................... 2.62%**
Net Assets at End of the Period (In millions)............... $ 28.7
Ratio of Expenses to Average Net Assets*.................... 0.75%
Ratio of Net Investment Income to Average Net Assets*....... 6.10%
Portfolio Turnover.......................................... 91%**
* 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.................. 2.08%
Ratio of Net Investment Income to Average Net Assets..... 4.78%
</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 27
VAN KAMPEN CORE PLUS FIXED INCOME FUND
FINANCIAL HIGHLIGHTS 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
AUGUST 31, 2007
----------------
NET ASSET VALUE, BEGINNING OF THE PERIOD.................... $10.00
------
Net Investment Income (a)................................. 0.30
Net Realized and Unrealized Loss.......................... (0.07)
------
Total from Investment Operations............................ 0.23
Less:
Distributions from Net Investment Income.................. 0.24
------
NET ASSET VALUE, END OF THE PERIOD.......................... $ 9.99
======
Total Return* (b)........................................... 2.35%**(c)
Net Assets at End of the Period (In millions)............... $ 1.5
Ratio of Expenses to Average Net Assets* (d)................ 1.28%(c)
Ratio of Net Investment Income to Average Net Assets*....... 5.14%(c)
Portfolio Turnover.......................................... 91%**
* 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 (d).............. 2.68%(c)
Ratio of Net Investment Income to Average Net Assets..... 3.74%(c)
</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.
(c) The Total Return, Ratio of Expenses to Average Net Assets and Ratio of Net
Investments Income to Average Net Assets reflect actual 12b-1 fees of less
than 1% (See footnote 7).
(d) The Ratio of Expenses to Average Net Assets does not reflect credits earned
on cash balances. If these credits were reflected as a reduction of
expenses, the ratio would decrease by .03% for the period ended August 31,
2007.
28 See Notes to Financial Statements
VAN KAMPEN CORE PLUS FIXED INCOME FUND
FINANCIAL HIGHLIGHTS 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
AUGUST 31, 2007
----------------
NET ASSET VALUE, BEGINNING OF THE PERIOD.................... $10.00
------
Net Investment Income (a)................................. 0.31
Net Realized and Unrealized Loss.......................... (0.05)
------
Total from Investment Operations............................ 0.26
Less:
Distributions from Net Investment Income.................. 0.25
------
NET ASSET VALUE, END OF THE PERIOD.......................... $10.01
======
Total Return* (b)........................................... 2.61%**(c)
Net Assets at End of the Period (In millions)............... $ 2.0
Ratio of Expenses to Average Net Assets* (d)................ 1.12%(c)
Ratio of Net Investment Income to Average Net Assets*....... 5.31%(c)
Portfolio Turnover.......................................... 91%**
* 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 (d).............. 2.52%(c)
Ratio of Net Investment Income to Average Net Assets..... 3.92%(c)
</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.
(c) The Total Return, Ratio of Expenses to Average Net Assets and Ratio of Net
Investment Income to Average Net Assets reflect actual 12b-1 fees of less
than 1% (See footnote 7).
(d) The Ratio of Expenses to Average Net Assets does not reflect credits earned
on cash balances. If these credits were reflected as a reduction of
expenses, the ratio would decrease by .03% for the period ended August 31,
2007.
See Notes to Financial Statements 29
VAN KAMPEN CORE PLUS FIXED INCOME FUND
FINANCIAL HIGHLIGHTS 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
AUGUST 31, 2007
----------------
NET ASSET VALUE, BEGINNING OF THE PERIOD.................... $10.00
------
Net Investment Income (a)................................. 0.36
Net Realized and Unrealized Loss.......................... (0.09)
------
Total from Investment Operations............................ 0.27
Less:
Distributions from Net Investment Income.................. 0.29
------
NET ASSET VALUE, END OF THE PERIOD.......................... $ 9.98
======
Total Return* (b)........................................... 2.77%**
Net Assets at End of the Period (In millions)............... $ 5.6
Ratio of Expenses to Average Net Assets* (c)................ 0.52%
Ratio of Net Investment Income to Average Net Assets*....... 6.07%
Portfolio Turnover.......................................... 91%**
* 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 (c).............. 1.91%
Ratio of Net Investment Income to Average Net Assets..... 4.68%
</Table>
** Not-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.
(c) The Ratio of Expenses to Average Net Assets does not reflect credits earned
on cash balances. If these credits were reflected as a reduction of
expenses, the ratio would decrease by .02% for the period ended August 31,
2007.
30 See Notes to Financial Statements
VAN KAMPEN CORE PLUS FIXED INCOME FUND
NOTES TO FINANCIAL STATEMENTS -- AUGUST 31, 2007
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.
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 TRANSACTION 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
aggregate value at least
31
VAN KAMPEN CORE PLUS FIXED INCOME FUND
NOTES TO FINANCIAL STATEMENTS -- AUGUST 31, 2007 continued
equal to the amount of the when-issued or delayed delivery purchase commitments
until payment is made. At August 31, 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. The
Fund adopted the provisions of the Financial Accounting Standards Board's (FASB)
Interpretation number 48 Accounting for Uncertainly in Income Taxes, on August
31, 2007. As of August 31, 2007, this did not result in an impact to the Fund's
financial statements.
At August 31, 2007, the cost and related gross unrealized appreciation and
depreciation are as follows:
<Table>
Cost of investments for tax purposes........................ $39,369,751
-----------
Gross tax unrealized appreciation........................... $ 127,520
Gross tax unrealized depreciation........................... (591,357)
-----------
Net tax unrealized depreciation on investments.............. $ (463,837)
===========
</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.
The tax character of distributions paid during the period ended August 31,
2007 were as follows:
<Table>
Distributions paid from:
Ordinary income............................................. $756,016
</Table>
Permanent differences, primarily due to non deductible start-up and offering
costs, resulted in the following reclassifications among the Fund's components
of net assets at August 31, 2007:
<Table>
<Caption>
ACCUMULATED UNDISTRIBUTED ACCUMULATED NET
NET INVESTMENT INCOME REALIZED LOSS CAPITAL
$150,275 $3,193 $(153,468)
</Table>
As of August 31, 2007, the components of distributable earnings on a tax
basis were as follows:
<Table>
Undistributed ordinary income............................... $431,791
Undistributed long-term capital gain........................ 48,626
</Table>
32
VAN KAMPEN CORE PLUS FIXED INCOME FUND
NOTES TO FINANCIAL STATEMENTS -- AUGUST 31, 2007 continued
Net realized gains or losses may differ for financial reporting and tax
purposes primarily as a result of the deferral of losses relating to wash sale
transactions and gains and losses recognized for tax purposes on open futures
transactions on August 31, 2007.
F. OFFERING COSTS Offering costs are amortized, on a straight-line basis, over a
twelve-month period.
G. EXPENSE REDUCTIONS During the period ended August 31, 2007, the Fund's
custody fee was reduced by $2,760 as a result of credits earned on cash
balances.
H. FOREIGN CURRENCY TRANSLATION Assets and liabilities denominated in foreign
currencies and commitments under forward currency contracts are translated into
U.S. dollars at the mean of the quoted bid and asked prices of such currencies
against the U.S. dollar. Purchases and sales of portfolio securities are
translated at the rate of exchange prevailing when such securities were acquired
or sold. Realized gain and loss on foreign currency transactions on the
Statement of Operations includes the net realized amount from the sale of
foreign currency, the amount realized between trade date and settlement date on
securities transactions and the foreign currency portion of gain and losses on
the sale of securities. Income and expenses are translated at rates prevailing
when accrued.
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 August 31, 2007, the Adviser waived approximately
$242,100 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 August 31, 2007, the Fund recognized expenses of
approximately $2,300 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, 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 August 31, 2007
the Fund recognized expenses of approximately $37,200 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.
33
VAN KAMPEN CORE PLUS FIXED INCOME FUND
NOTES TO FINANCIAL STATEMENTS -- AUGUST 31, 2007 continued
Van Kampen Investor Services Inc. (VKIS), an affiliate of the Adviser,
serves as the shareholder servicing agent for the Fund. For the period ended
August 31, 2007 the Fund recognized expenses of approximately $11,200
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 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 $915 are included in
"Other" assets on the Statement of Assets and Liabilities at August 31, 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 August 31, 2007, Van Kampen, as Distributor for the
Fund, received commissions on sales of the Fund's Class A Shares of
approximately $45,632 and contingent deferred sales charge (CDSC) on redeemed
shares of approximately $2,816. Sales charges do not represent expenses of the
Fund.
At August 31, 2007, Morgan Stanley Investment Management, Inc., an affiliate
of the Adviser, owned 493,311 shares of Class A and 498,865 shares of Class I.
3. CAPITAL TRANSACTIONS
For the period ended August 31, 2007, transactions were as follows:
<Table>
<Caption>
SHARES VALUE
Sales:
Class A................................................... 3,061,981 $ 30,559,200
Class B................................................... 779,988 7,798,144
Class C................................................... 820,289 8,202,347
Class I................................................... 688,329 6,880,756
---------- ------------
Total Sales................................................. 5,350,587 $ 53,440,447
========== ============
Dividend Reinvestment:
Class A................................................... 18,914 $ 188,576
Class B................................................... 1,155 11,534
Class C................................................... 1,432 14,317
Class I................................................... 389 3,887
---------- ------------
Total Dividend Reinvestment................................. 21,890 $ 218,314
========== ============
Repurchases:
Class A................................................... (208,509) $ (2,072,235)
Class B................................................... (629,816) (6,269,206)
Class C................................................... (625,870) (6,232,311)
Class I................................................... (126,266) (1,251,300)
---------- ------------
Total Repurchases........................................... (1,590,461) $(15,825,052)
========== ============
</Table>
34
VAN KAMPEN CORE PLUS FIXED INCOME FUND
NOTES TO FINANCIAL STATEMENTS -- AUGUST 31, 2007 continued
4. REDEMPTION FEE
The Fund will assess 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 and allocated on a pro rata basis to
each class of shares. For the period ended August 31, 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 $47,337,117 and $15,361,292,
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 these instances, 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 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 August 31, 2007, were
as follows:
<Table>
<Caption>
CONTRACTS
Outstanding at January 26, 2007............................. -0-
Futures Opened.............................................. 1,080
Futures Closed.............................................. (869)
-----
Outstanding at August 31, 2007.............................. 211
=====
</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
35
VAN KAMPEN CORE PLUS FIXED INCOME FUND
NOTES TO FINANCIAL STATEMENTS -- AUGUST 31, 2007 continued
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. SWAP CONTRACTS 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 credit default swaps 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. Payments received or made upon entering into a credit
default swap contract, if any, are recorded as realized gain or loss on the
Statement of Operations upon termination or maturity of the swap. 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.
The Fund may also enter into interest rate swaps primarily to preserve a
return or spread on a particular investment or portion of its portfolio, as a
duration management technique or to protect against any increase in the price of
securities the Fund anticipates purchasing at a later date. Interest rate swaps
are contractual agreements to exchange periodic interest payment streams
calculated on a predetermined notional principal amount. Interest rate swaps
generally involve one party paying a fixed interest rate and the other party
paying a variable rate. The Fund will usually enter into interest rate swaps on
a net basis, i.e, the two payment streams are netted out in a cash settlement on
the payment date or dates specified in the instrument, with the Fund receiving
or paying, as the case may be, only the net amount of the two payments. The Fund
accrues the net amount with respect to each interest rate swap on a daily basis.
This net amount is recorded within unrealized appreciation/depreciation on swap
contracts. Upon cash settlement of the periodic payments, the net amount is
recorded as realized gain/loss on swap contracts on the Statement of Operations.
Risks may arise as a result of the potential inability of the counterparties to
meet the terms of their contracts.
If there is a default by the counterparty to a swap agreement, the Fund will
have contractual remedies pursuant to the agreements related to the transaction.
Counterparties
36
VAN KAMPEN CORE PLUS FIXED INCOME FUND
NOTES TO FINANCIAL STATEMENTS -- AUGUST 31, 2007 continued
are required to pledge collateral daily (based on the valuation of each swap) on
behalf of the Fund with a value approximately equal to the amount of any
unrealized gain. Cash collateral, when received by the Fund, is recorded with an
offsetting liability shown on the Statement of Assets and Liabilities.
Reciprocally, when the Fund has an unrealized loss on a swap contract, the Fund
has instructed the custodian to pledge cash or liquid securities as collateral
with a value approximately equal to the amount of the unrealized loss.
Collateral pledges are monitored and subsequently adjusted if and when the swap
valuations fluctuate. Restricted cash, if any, for segregating purposes is shown
on the Statement of Assets and Liabilities.
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 $1,300 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. 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.
9. ACCOUNTING PRONOUNCEMENT
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.
37
VAN KAMPEN CORE PLUS FIXED INCOME FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and Board of Trustees of
Van Kampen Core Plus Fixed Income Fund
We have audited the accompanying statement of assets and liabilities,
including the portfolio of investments, of Van Kampen Core Plus Fixed Income
Fund (comprising, the Van Kampen Trust (the "Fund")) as of August 31, 2007, and
the related statement of operations, the statement of changes in net assets, and
the financial highlights for the period from January 26, 2007 (commencement of
operations) through August 31, 2007. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audit.
We conducted our audit in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material misstatement.
We were not engaged to perform an audit of the Fund's internal control over
financial reporting. Our audit included consideration of internal control over
financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Fund's internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights, assessing the accounting
principles used and significant estimates made by management, and evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of August 31, 2007, by correspondence with the custodian
and brokers or by other appropriate auditing procedures where replies from
brokers were not received. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of the
Van Kampen Core Plus Fixed Income Fund of the Van Kampen Trust at August 31,
2007, the results of its operations, the changes in its net assets, and the
financial highlights for the period from January 26, 2007 (commencement of
operations) through August 31, 2007, in conformity with U.S. generally accepted
accounting principles.
/s/ Ernst & Young LLP
Chicago, Illinois
October 16, 2007
38
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
STUART N. SCHULDT
Chief Financial Officer and Treasurer
INVESTMENT ADVISER
VAN KAMPEN ASSET MANAGEMENT
522 Fifth Avenue
New York, New York 10036
DISTRIBUTOR
VAN KAMPEN FUNDS INC.
One Parkview Plaza--Suite 100
P.O. Box 5555
Oakbrook Terrace, Illinois 60181-5555
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 60606-4301
* "Interested persons" of the Fund, as defined in the Investment Company Act
of 1940, as amended.
39
VAN KAMPEN CORE PLUS FIXED INCOME FUND
TRUSTEES AND OFFICERS
The business and affairs of the Fund are managed under the direction of the
Fund's Board of Trustees and the Fund's officers appointed by the Board of
Trustees. The tables below list the trustees and executive officers of the Fund
and their principal occupations during the last five years, other directorships
held by trustees and their affiliations, if any, with Van Kampen Investments,
the Adviser, the Distributor, Van Kampen Advisors Inc., Van Kampen Exchange
Corp. and Investor Services. The term "Fund Complex" includes each of the
investment companies advised by the Adviser as of the date of this Annual
Report. Trustees serve until reaching their retirement age or until their
successors are duly elected and qualified. Officers are annually elected by the
trustees.
INDEPENDENT TRUSTEES
<Table>
<Caption>
NUMBER OF
TERM OF FUNDS IN
OFFICE AND FUND
POSITION(S) LENGTH OF COMPLEX
NAME, AGE AND ADDRESS HELD WITH TIME PRINCIPAL OCCUPATION(S) OVERSEEN OTHER DIRECTORSHIPS
OF INDEPENDENT TRUSTEE FUND SERVED DURING PAST 5 YEARS BY TRUSTEE HELD BY TRUSTEE
David C. Arch (62) Trustee Trustee Chairman and Chief 73 Trustee/Director/Managing
Blistex Inc. since 2005 Executive Officer of General Partner of funds
1800 Swift Drive Blistex Inc., a consumer in the Fund Complex.
Oak Brook, IL 60523 health care products Director of the Heartland
manufacturer. Alliance, a nonprofit
organization serving
human needs based in
Chicago. Board member of
the Illinois
Manufacturers'
Association.
Jerry D. Choate (69) Trustee Trustee Prior to January 1999, 73 Trustee/Director/Managing
33971 Selva Road since 2005 Chairman and Chief General Partner of funds
Suite 130 Executive Officer of the in the Fund Complex.
Dana Point, CA 92629 Allstate Corporation Director of H&R Block,
("Allstate") and Allstate Amgen Inc., a
Insurance Company. Prior biotechnological company,
to January 1995, and Valero Energy
President and Chief Corporation, an
Executive Officer of independent refining
Allstate. Prior to August company.
1994, various management
positions at Allstate.
</Table>
40
<Table>
<Caption>
VAN KAMPEN CORE PLUS FIXED INCOME FUND
TRUSTEES AND OFFICERS continued
NUMBER OF
TERM OF FUNDS IN
OFFICE AND FUND
POSITION(S) LENGTH OF COMPLEX
NAME, AGE AND ADDRESS HELD WITH TIME PRINCIPAL OCCUPATION(S) OVERSEEN OTHER DIRECTORSHIPS
OF INDEPENDENT TRUSTEE FUND SERVED DURING PAST 5 YEARS BY TRUSTEE HELD BY TRUSTEE
Rod Dammeyer (66) Trustee Trustee President of CAC, L.L.C., 73 Trustee/Director/Managing
CAC, L.L.C. since 2005 a private company General Partner of funds
4350 LaJolla Village Drive offering capital in the Fund Complex.
Suite 980 investment and management Director of Quidel
San Diego, CA 92122-6223 advisory services. Corporation, Stericycle,
Inc., Ventana Medical
Systems, Inc. and Trustee
of The Scripps Research
Institute. Prior to April
2007, Director of GATX
Corporation. Prior to
April 2004, Director of
TheraSense, Inc. Prior to
January 2004, Director of
TeleTech Holdings Inc.
and Arris Group, Inc.
Linda Hutton Heagy+ (59) Trustee Trustee Managing Partner of 73 Trustee/Director/Managing
Heidrick & Struggles since 2005 Heidrick & Struggles, an General Partner of funds
233 South Wacker Drive international executive in the Fund Complex.
Suite 7000 search firm. Prior to Trustee on the University
Chicago, IL 60606 1997, Partner of Ray & of Chicago Hospitals
Berndtson, Inc., an Board, Vice Chair of the
executive recruiting Board of the YMCA of
firm. Prior to 1995, Metropolitan Chicago and
Executive Vice President a member of the Women's
of ABN AMRO, N.A., a bank Board of the University
holding company. Prior to of Chicago.
1990, Executive Vice
President of The Exchange
National Bank.
</Table>
41
<Table>
<Caption>
VAN KAMPEN CORE PLUS FIXED INCOME FUND
TRUSTEES AND OFFICERS continued
NUMBER OF
TERM OF FUNDS IN
OFFICE AND FUND
POSITION(S) LENGTH OF COMPLEX
NAME, AGE AND ADDRESS HELD WITH TIME PRINCIPAL OCCUPATION(S) OVERSEEN OTHER DIRECTORSHIPS
OF INDEPENDENT TRUSTEE FUND SERVED DURING PAST 5 YEARS BY TRUSTEE HELD BY TRUSTEE
R. Craig Kennedy (55) Trustee Trustee Director and President of 73 Trustee/Director/Managing
1744 R Street, NW since 2005 the German Marshall Fund General Partner of funds
Washington, DC 20009 of the United States, an in the Fund Complex.
independent U.S.
foundation created to
deepen understanding,
promote collaboration and
stimulate exchanges of
practical experience
between Americans and
Europeans. Formerly,
advisor to the Dennis
Trading Group Inc., a
managed futures and
option company that
invests money for
individuals and
institutions. Prior to
1992, President and Chief
Executive Officer,
Director and member of
the Investment Committee
of the Joyce Foundation,
a private foundation.
Howard J Kerr (71) Trustee Trustee Prior to 1998, President 73 Trustee/Director/Managing
14 Huron Trace since 2005 and Chief Executive General Partner of funds
Galena, IL 61036 Officer of Pocklington in the Fund Complex.
Corporation, Inc., an Director of the Lake
investment holding Forest Bank & Trust.
company. Director of the Marrow
Foundation.
Jack E. Nelson (71) Trustee Trustee President of Nelson 73 Trustee/Director/Managing
423 Country Club Drive since 2005 Investment Planning General Partner of funds
Winter Park, FL 32789 Services, Inc., a in the Fund Complex.
financial planning
company and registered
investment adviser in the
State of Florida.
President of Nelson Ivest
Brokerage Services Inc.,
a member of FINRA,
Securities Investors
Protection Corp. and the
Municipal Securities
Rulemaking Board.
President of Nelson Sales
and Services Corporation,
a marketing and services
company to support
affiliated companies.
</Table>
42
<Table>
<Caption>
VAN KAMPEN CORE PLUS FIXED INCOME FUND
TRUSTEES AND OFFICERS continued
NUMBER OF
TERM OF FUNDS IN
OFFICE AND FUND
POSITION(S) LENGTH OF COMPLEX
NAME, AGE AND ADDRESS HELD WITH TIME PRINCIPAL OCCUPATION(S) OVERSEEN OTHER DIRECTORSHIPS
OF INDEPENDENT TRUSTEE FUND SERVED DURING PAST 5 YEARS BY TRUSTEE HELD BY TRUSTEE
Hugo F. Sonnenschein (66) Trustee Trustee President Emeritus and 73 Trustee/Director/Managing
1126 E. 59th Street since 2005 Honorary Trustee of the General Partner of funds
Chicago, IL 60637 University of Chicago and in the Fund Complex.
the Adam Smith Trustee of the University
Distinguished Service of Rochester and a member
Professor in the of its investment
Department of Economics committee. Member of the
at the University of National Academy of
Chicago. Prior to July Sciences, the American
2000, President of the Philosophical Society and
University of Chicago. a fellow of the American
Academy of Arts and
Sciences.
</Table>
43
<Table>
<Caption>
VAN KAMPEN CORE PLUS FIXED INCOME FUND
TRUSTEES AND OFFICERS continued
NUMBER OF
TERM OF FUNDS IN
OFFICE AND FUND
POSITION(S) LENGTH OF COMPLEX
NAME, AGE AND ADDRESS HELD WITH TIME PRINCIPAL OCCUPATION(S) OVERSEEN OTHER DIRECTORSHIPS
OF INDEPENDENT TRUSTEE FUND SERVED DURING PAST 5 YEARS BY TRUSTEE HELD BY TRUSTEE
Suzanne H. Woolsey, Ph.D. Trustee Trustee Chief Communications 73 Trustee/Director/Managing
(65) since 2005 Officer of the National General Partner of funds
815 Cumberstone Road Academy of in the Fund Complex.
Harwood, MD 20776 Sciences/National Director of Fluor Corp.,
Research Council, an an engineering,
independent, federally procurement and
chartered policy construction
institution, from 2001 to organization, since
November 2003 and Chief January 2004. Director of
Operating Officer from Intelligent Medical
1993 to 2001. Prior to Devices, Inc., a symptom
1993, Executive Director based diagnostic tool for
of the Commission on physicians and clinical
Behavioral and Social labs. Director of the
Sciences and Education at Institute for Defense
the National Academy of Analyses, a federally
Sciences/National funded research and
Research Council. From development center,
1980 through 1989, Director of the German
Partner of Coopers & Marshall Fund of the
Lybrand. United States, Director
of the Rocky Mountain
Institute of Technology
and the Colorado College.
</Table>
44
VAN KAMPEN CORE PLUS FIXED INCOME FUND
TRUSTEES AND OFFICERS continued
INTERESTED TRUSTEE*
<Table>
<Caption>
NUMBER OF
TERM OF FUNDS IN
OFFICE AND FUND
POSITION(S) LENGTH OF COMPLEX
NAME, AGE AND ADDRESS HELD WITH TIME PRINCIPAL OCCUPATION(S) OVERSEEN OTHER DIRECTORSHIPS
OF INTERESTED TRUSTEE FUND SERVED DURING PAST 5 YEARS BY TRUSTEE HELD BY TRUSTEE
Wayne W. Whalen* (68) Trustee Trustee Partner in the law firm 73 Trustee/Director/Managing
333 West Wacker Drive since 2005 of Skadden, Arps, Slate, General Partner of funds
Chicago, IL 60606 Meagher & Flom LLP, legal in the Fund Complex.
counsel to funds in the Director of the Abraham
Fund Complex. Lincoln Presidential
Library Foundation.
</Table>
+ As indicated above, Ms. Heagy is an employee of Heidrick and Struggles, an
international executive search firm ("Heidrick"). Heidrick has been (and may
continue to be) engaged by Morgan Stanley from time to time to perform
executive searches. Such searches have been unrelated to Van Kampen's or
Morgan Stanley's asset management businesses and have been done by
professionals at Heidrick without any involvement by Ms. Heagy. Ethical wall
procedures exist to ensure that Ms. Heagy will not have any involvement with
any searches performed by Heidrick for Morgan Stanley. Ms. Heagy does not
receive any compensation, directly or indirectly, for searches performed by
Heidrick for Morgan Stanley. Ms. Heagy does own common shares of Heidrick
(representing less than 1% of Heidrick's outstanding common shares).
* Mr. Whalen is an "interested person" (within the meaning of Section 2(a)(19)
of the 1940 Act) of certain funds in the Fund Complex by reason of he and
his firm currently providing legal services as legal counsel to such funds
in the Fund Complex.
45
VAN KAMPEN CORE PLUS FIXED INCOME FUND
TRUSTEES AND OFFICERS continued
OFFICERS
<Table>
<Caption>
TERM OF
OFFICE AND
POSITION(S) LENGTH OF
NAME, AGE AND HELD WITH TIME PRINCIPAL OCCUPATION(S)
ADDRESS OF OFFICER FUND SERVED DURING PAST 5 YEARS
Ronald E. Robison (68) President and Officer President of funds in the Fund Complex since September 2005
522 Fifth Avenue Principal Executive since 2005 and Principal Executive Officer of funds in the Fund Complex
New York, NY 10036 Officer since May 2003. Managing Director of Van Kampen Advisors
Inc. since June 2003. Director of Investor Services since
September 2002. Director of the Adviser, Van Kampen
Investments and Van Kampen Exchange Corp. since January
2005. Managing Director of Morgan Stanley and Morgan Stanley
& Co. Incorporated. Managing Director and Director of Morgan
Stanley Investment Management Inc. Chief Administrative
Officer, Managing Director and Director of Morgan Stanley
Investment Advisors Inc. and Morgan Stanley Services Company
Inc. Managing Director and Director of Morgan Stanley
Distributors Inc. and Morgan Stanley Distribution Inc. Chief
Executive Officer and Director of Morgan Stanley Trust.
Executive Vice President and Principal Executive Officer of
the Institutional and Retail Morgan Stanley Funds. Director
of Morgan Stanley SICAV. Previously, Chief Global Operations
Officer of Morgan Stanley Investment Management Inc. and
Executive Vice President of funds in the Fund Complex from
May 2003 to September 2005.
Dennis Shea (54) Vice President Officer Managing Director of Morgan Stanley Investment Advisors
522 Fifth Avenue since 2006 Inc., Morgan Stanley Investment Management Inc., the Adviser
New York, NY 10036 and Van Kampen Advisors Inc. Chief Investment Officer--
Global Equity of the same entities since February 2006. Vice
President of Morgan Stanley Institutional and Retail Funds
since February 2006. Vice President of funds in the Fund
Complex since March 2006. Previously, Managing Director and
Director of Global Equity Research at Morgan Stanley from
April 2000 to February 2006.
J. David Germany (53) Vice President Officer Managing Director of Morgan Stanley Investment Advisors
20 Bank Street, since 2006 Inc., Morgan Stanley Investment Management Inc., the Adviser
Canary Wharf and Van Kampen Advisors Inc. Chief Investment Officer--
London, GBR E14 4AD Global Fixed Income of the same entities since December
2005. Managing Director and Director of Morgan Stanley
Investment Management Ltd. Director of Morgan Stanley
Investment Management (ACD) Limited since December 2003.
Vice President of Morgan Stanley Institutional and Retail
Funds since February 2006. Vice President of funds in the
Fund Complex since March 2006.
</Table>
46
<Table>
<Caption>
VAN KAMPEN CORE PLUS FIXED INCOME FUND
TRUSTEES AND OFFICERS continued
TERM OF
OFFICE AND
POSITION(S) LENGTH OF
NAME, AGE AND HELD WITH TIME PRINCIPAL OCCUPATION(S)
ADDRESS OF OFFICER FUND SERVED DURING PAST 5 YEARS
Amy R. Doberman (45) Vice President Officer Managing Director and General Counsel--U.S. Investment
522 Fifth Avenue since 2005 Management; Managing Director of Morgan Stanley Investment
New York, NY 10036 Management Inc., Morgan Stanley Investment Advisors Inc. and
the Adviser. Vice President of the Morgan Stanley
Institutional and Retail Funds since July 2004 and Vice
President of funds in the Fund Complex since August 2004.
Previously, Managing Director and General Counsel of
Americas, UBS Global Asset Management from July 2000 to July
2004 and General Counsel of Aeltus Investment Management,
Inc. from January 1997 to July 2000.
Stefanie V. Chang (40) Vice President Officer Executive Director of Morgan Stanley Investment Management
522 Fifth Avenue and Secretary since 2005 Inc. Vice President and Secretary of funds in the Fund
New York, NY 10036 Complex.
John L. Sullivan (52) Chief Compliance Officer Chief Compliance Officer of funds in the Fund Complex since
1 Parkview Plaza - Suite 100 Officer since 2005 August 2004. Prior to August 2004, Director and Managing
Oakbrook Terrace, IL 60181 Director of Van Kampen Investments, the Adviser, Van Kampen
Advisors Inc. and certain other subsidiaries of Van Kampen
Investments, Vice President, Chief Financial Officer and
Treasurer of funds in the Fund Complex and head of Fund
Accounting for Morgan Stanley Investment Management Inc.
Prior to December 2002, Executive Director of Van Kampen
Investments, the Adviser and Van Kampen Advisors Inc.
Stuart N. Schuldt (45) Chief Financial Officer Officer Executive Director of Morgan Stanley Investment Management
1 Parkview Plaza - Suite 100 and Treasurer since 2007 Inc. since June 2007. Chief Financial Officer and Treasurer
Oakbrook Terrace, IL 60181 of funds in the Fund Complex since June 2007. Prior to June
2007, Senior Vice President of Northern Trust Company,
Treasurer and Principal Financial Officer for Northern Trust
U.S. mutual fund complex.
</Table>
47
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.
The Statement of Additional Information includes additional information
about Fund trustees and is available, without charge, upon request by
calling 1-800-847-2424.
Van Kampen Funds Inc.
1 Parkview Plaza - Suite 100
P.O. Box 5555
Oakbrook Terrace, IL 60181-5555
www.vankampen.com
Copyright (C)2007 Van Kampen Funds Inc.
All rights reserved. Member FINRA/SIPC.
122, 222, 322, 622
CPFIANN 10/07
(VAN KAMPEN INVESTMENTS LOGO) IU07-03927P-Y08/07
Item 2. Code of Ethics.
(a) The Fund has adopted a code of ethics (the "Code of Ethics") that applies
to its principal executive officer, principal financial officer, principal
accounting officer or controller, or persons performing similar functions,
regardless of whether these individuals are employed by the Fund or a third
party.
(b) No information need be disclosed pursuant to this paragraph.
(c) Due to personnel changes at the Adviser, the list of covered officers set
forth in Exhibit B was amended in November 2006 and June 2007 and the
general counsel's designee set forth in Exhibit C was amended in October
and December 2006. All three editions of Exhibit B and all three editions
of Exhibit C are attached.
(d) Not applicable.
(e) Not applicable.
(f)
(1) The Fund's Code of Ethics is attached hereto as Exhibit 12(1).
(2) Not applicable.
(3) Not applicable.
Item 3. Audit Committee Financial Expert.
The Fund's Board of Trustees has determined that it has three "audit committee
financial experts" serving on its audit committee, each of whom are
"independent" Trustees : Rod Dammeyer, Jerry D. Choate and R. Craig Kennedy.
Under applicable securities laws, a person who is determined to be an audit
committee financial expert will not be deemed an "expert" for any purpose,
including without limitation for the purposes of Section 11 of the Securities
Act of 1933, as a result of being designated or identified as an audit committee
financial expert. The designation or identification of a person as an audit
committee financial expert does not impose on such person any duties,
obligations, or liabilities that are greater than the duties, obligations, and
liabilities imposed on such person as a member of the audit committee and Board
of Trustees in the absence of such designation or identification.
Item 4. Principal Accountant Fees and Services.
(a)(b)(c)(d) and (g). Based on fees billed for the periods shown:
2007
REGISTRANT COVERED ENTITIES(1)
---------- -------------------
AUDIT FEES............... $31,000 N/A
NON-AUDIT FEES
AUDIT-RELATED FEES ... $ 0 $ 781,800(2)
TAX FEES ............. $ 3,100(3) $ 63,070(4)
ALL OTHER FEES ....... $ 0 $ 157,910(5)
TOTAL NON-AUDIT FEES .... $ 3,100 $1,002,780
TOTAL ................... $34,100 $1,002,780
2006
REGISTRANT COVERED ENTITIES(1)
---------- -------------------
AUDIT FEES.............. $0 N/A
NON-AUDIT FEES
AUDIT-RELATED FEES... $0 $0
TAX FEES............. $0 $0
ALL OTHER FEES....... $0 $0
TOTAL NON-AUDIT FEES.... $0 $0
TOTAL................... $0 $0
N/A- Not applicable, as not required by Item 4.
(1) Covered Entities include the Adviser (excluding sub-advisors) and any
entity controlling, controlled by or under common control with the Adviser
that provides ongoing services to the Registrant.
(2) Audit-Related Fees represent assurance and related services provided that
are reasonably related to the performance of the audit of the financial
statements of the Covered Entities' and funds advised by the Adviser or its
affiliates, specifically attestation services provided in connection with a
SAS 70 Report.
(3) Tax Fees represent tax advice and compliance services provided in
connection with the review of the Registrant's tax.
(4) Tax Fees represent tax advice services provided to Covered Entities,
including research and identification of PFIC entities.
(5) All Other Fees represent attestation services provided in connection with
performance presentation standards and assistance with compliance policies
and procedures.
(e)(1) The audit committee's pre-approval policies and procedures are as
follows:
JOINT AUDIT COMMITTEE
AUDIT AND NON-AUDIT SERVICES
PRE-APPROVAL POLICY AND PROCEDURES
OF THE
VAN KAMPEN FUNDS
AS ADOPTED JULY 23, 2003 AND AMENDED MAY 26, 2004(1)
1. STATEMENT OF PRINCIPLES
The Audit Committee of the Board is required to review and, in its sole
discretion, pre-approve all Covered Services to be provided by the Independent
Auditors to the Fund and Covered Entities in order to assure that services
performed by the Independent Auditors do not impair the auditor's independence
from the Fund.(2)
The SEC has issued rules specifying the types of services that an
independent auditor may not provide to its audit client, as well as the audit
committee's administration of the engagement of the independent auditor. The
SEC's rules establish two different approaches to pre-approving services, which
the SEC considers to be equally valid. Proposed services either: may be
pre-approved without consideration of specific case-by-case services by the
Audit Committee ("general pre-approval"); or require the specific pre-approval
of the Audit Committee ("specific pre-approval"). The Audit Committee believes
that the combination of these two approaches in this Policy will result in an
effective and efficient procedure to pre-approve services performed by the
Independent Auditors. As set forth in this Policy, unless a type of service has
received general pre-approval, it will require specific pre-approval by the
Audit Committee (or by any member of the Audit Committee to which pre-approval
authority has been delegated) if it is to be provided by the Independent
Auditors. Any proposed services exceeding pre-approved cost levels or budgeted
amounts will also require specific pre-approval by the Audit Committee.
For both types of pre-approval, the Audit Committee will consider whether
such services are consistent with the SEC's rules on auditor independence. The
Audit Committee will also consider whether the Independent Auditors are best
positioned to provide the most effective and efficient services, for reasons
such as its familiarity with the Fund's business, people, culture, accounting
systems, risk profile and other factors, and whether the service might enhance
the Fund's ability to manage or control risk or improve audit quality. All such
factors will be considered as a whole, and no one factor should necessarily be
determinative.
The Audit Committee is also mindful of the relationship between fees for
audit and non-audit services in deciding whether to pre-approve any such
services and may determine for each fiscal year, the appropriate ratio between
the total amount of fees for Audit, Audit-related and Tax services for the Fund
(including any Audit-related or Tax service fees for Covered Entities that were
subject to pre-approval), and the total amount of fees for certain permissible
non-audit services classified as All Other services for the Fund (including any
such services for Covered Entities subject to pre-approval).
The appendices to this Policy describe the Audit, Audit-related, Tax and
All Other services that have the general pre-approval of the Audit Committee.
The term of any general pre-approval is 12 months from the date of pre-approval,
unless the Audit Committee considers and provides a different period and states
otherwise. The Audit Committee will annually review and pre-approve the services
that may be provided by the Independent Auditors without obtaining specific
pre-approval from the Audit Committee. The Audit Committee will add to or
subtract from the list of general pre-approved services from time to time, based
on subsequent determinations.
The purpose of this Policy is to set forth the policy and procedures by
which the Audit Committee intends to fulfill its responsibilities. It does not
delegate the Audit Committee's responsibilities to pre-approve services
performed by the Independent Auditors to management.
- ----------
(1) This Joint Audit Committee Audit and Non-Audit Services Pre-Approval Policy
and Procedures (the "Policy"), amended as of the date above, supercedes and
replaces all prior versions that may have been amended from time to time.
(2) Terms used in this Policy and not otherwise defined herein shall have the
meanings as defined in the Joint Audit Committee Charter.
The Fund's Independent Auditors have reviewed this Policy and believes that
implementation of the Policy will not adversely affect the Independent Auditors'
independence.
2. DELEGATION
As provided in the Act and the SEC's rules, the Audit Committee may
delegate either type of pre-approval authority to one or more of its members.
The member to whom such authority is delegated must report, for informational
purposes only, any pre-approval decisions to the Audit Committee at its next
scheduled meeting.
3. AUDIT SERVICES
The annual Audit services engagement terms and fees are subject to the
specific pre-approval of the Audit Committee. Audit services include the annual
financial statement audit and other procedures required to be performed by the
Independent Auditors to be able to form an opinion on the Fund's financial
statements. These other procedures include information systems and procedural
reviews and testing performed in order to understand and place reliance on the
systems of internal control, and consultations relating to the audit. The Audit
Committee will monitor the Audit services engagement as necessary, but no less
than on a quarterly basis, and will also approve, if necessary, any changes in
terms, conditions and fees resulting from changes in audit scope, Fund structure
or other items.
In addition to the annual Audit services engagement approved by the Audit
Committee, the Audit Committee may grant general pre-approval to other Audit
services, which are those services that only the Independent Auditors reasonably
can provide. Other Audit services may include statutory audits and services
associated with SEC registration statements (on Forms N-1A, N-2, N-3, N-4,
etc.), periodic reports and other documents filed with the SEC or other
documents issued in connection with securities offerings.
The Audit Committee has pre-approved the Audit services in Appendix B.1.
All other Audit services not listed in Appendix B.1 must be specifically
pre-approved by the Audit Committee (or by any member of the Audit Committee to
which pre-approval has been delegated).
4. AUDIT-RELATED SERVICES
Audit-related services are assurance and related services that are
reasonably related to the performance of the audit or review of the Fund's
financial statements or, to the extent they are Covered Services, the Covered
Entities' financial statements, or that are traditionally performed by the
Independent Auditors. Because the Audit Committee believes that the provision of
Audit-related services does not impair the independence of the auditor and is
consistent with the SEC's rules on auditor independence, the Audit Committee may
grant general pre-approval to Audit-related services. Audit-related services
include, among others, accounting consultations related to accounting, financial
reporting or disclosure matters not classified as "Audit services"; assistance
with understanding and implementing new accounting and financial reporting
guidance from rulemaking authorities; agreed-upon or expanded audit procedures
related to accounting and/or billing records required to respond to or comply
with financial, accounting or regulatory reporting matters; and assistance with
internal control reporting requirements under Forms N-SAR and/or N-CSR.
The Audit Committee has pre-approved the Audit-related services in Appendix
B.2. All other Audit-related services not listed in Appendix B.2 must be
specifically pre-approved by the Audit Committee (or by any member of the Audit
Committee to which pre-approval has been delegated).
5. TAX SERVICES
The Audit Committee believes that the Independent Auditors can provide Tax
services to the Fund and, to the extent they are Covered Services, the Covered
Entities, such as tax compliance, tax planning and tax advice without impairing
the auditor's independence, and the SEC has stated that the Independent Auditors
may provide such services. Hence, the Audit Committee believes it may grant
general pre-approval to those Tax services that have historically been provided
by the Independent Auditors, that the Audit Committee has reviewed and believes
would not impair the independence of the Independent Auditors, and that are
consistent with the SEC's rules on auditor independence. The Audit Committee
will not permit the retention of the
Independent Auditors in connection with a transaction initially recommended by
the Independent Auditors, the sole business purpose of which may be tax
avoidance and the tax treatment of which may not be supported in the Internal
Revenue Code and related regulations. The Audit Committee will consult with
Director of Tax or outside counsel to determine that the tax planning and
reporting positions are consistent with this policy.
Pursuant to the preceding paragraph, the Audit Committee has pre-approved
the Tax Services in Appendix B.3. All Tax services involving large and complex
transactions not listed in Appendix B.3 must be specifically pre-approved by the
Audit Committee (or by any member of the Audit Committee to which pre-approval
has been delegated), including tax services proposed to be provided by the
Independent Auditors to any executive officer or trustee/director/managing
general partner of the Fund, in his or her individual capacity, where such
services are paid for by the Fund (generally applicable only to internally
managed investment companies).
6. ALL OTHER SERVICES
The Audit Committee believes, based on the SEC's rules prohibiting the
Independent Auditors from providing specific non-audit services, that other
types of non-audit services are permitted. Accordingly, the Audit Committee
believes it may grant general pre-approval to those permissible non-audit
services classified as All Other services that it believes are routine and
recurring services, would not impair the independence of the auditor and are
consistent with the SEC's rules on auditor independence.
The Audit Committee has pre-approved the All Other services in Appendix
B.4. Permissible All Other services not listed in Appendix B.4 must be
specifically pre-approved by the Audit Committee (or by any member of the Audit
Committee to which pre-approval has been delegated).
A list of the SEC's prohibited non-audit services is attached to this
policy as Appendix B.5. The SEC's rules and relevant guidance should be
consulted to determine the precise definitions of these services and the
applicability of exceptions to certain of the prohibitions.
7. PRE-APPROVAL FEE LEVELS OR BUDGETED AMOUNTS
Pre-approval fee levels or budgeted amounts for all services to be provided
by the Independent Auditors will be established annually by the Audit Committee.
Any proposed services exceeding these levels or amounts will require specific
pre-approval by the Audit Committee. The Audit Committee is mindful of the
overall relationship of fees for audit and non-audit services in determining
whether to pre-approve any such services. For each fiscal year, the Audit
Committee may determine the appropriate ratio between the total amount of fees
for Audit, Audit-related, and Tax services for the Fund (including any
Audit-related or Tax services fees for Covered Entities subject to
pre-approval), and the total amount of fees for certain permissible non-audit
services classified as All Other services for the Fund (including any such
services for Covered Entities subject to pre-approval).
8. PROCEDURES
All requests or applications for services to be provided by the Independent
Auditors that do not require specific approval by the Audit Committee will be
submitted to the Fund's Chief Financial Officer and must include a detailed
description of the services to be rendered. The Fund's Chief Financial Officer
will determine whether such services are included within the list of services
that have received the general pre-approval of the Audit Committee. The Audit
Committee will be informed on a timely basis of any such services rendered by
the Independent Auditors. Requests or applications to provide services that
require specific approval by the Audit Committee will be submitted to the Audit
Committee by both the Independent Auditors and the Fund's Chief Financial
Officer, and must include a joint statement as to whether, in their view, the
request or application is consistent with the SEC's rules on auditor
independence.
The Audit Committee has designated the Fund's Chief Financial Officer to
monitor the performance of all services provided by the Independent Auditors and
to determine whether such services are in compliance with this Policy. The
Fund's Chief Financial Officer will report to the Audit Committee on a periodic
basis on the results of its monitoring. A sample report is included as Appendix
B.7. Both the Fund's Chief Financial Officer and management will immediately
report to the chairman of the Audit Committee any breach of this Policy that
comes to the attention of the Fund's Chief Financial Officer or any member of
management.
9. ADDITIONAL REQUIREMENTS
The Audit Committee has determined to take additional measures on an annual
basis to meet its responsibility to oversee the work of the Independent Auditors
and to assure the auditor's independence from the Fund, such as reviewing a
formal written statement from the Independent Auditors delineating all
relationships between the Independent Auditors and the Fund, consistent with
Independence Standards Board No. 1, and discussing with the Independent Auditors
its methods and procedures for ensuring independence.
10. COVERED ENTITIES
Covered Entities include the Fund's investment adviser(s) and any entity
controlling, controlled by or under common control with the Fund's investment
adviser(s) that provides ongoing services to the Fund(s). Beginning with
non-audit service contracts entered into on or after May 6, 2003, the Fund's
audit committee must pre-approve non-audit services provided not only to the
Fund but also to the Covered Entities if the engagements relate directly to the
operations and financial reporting of the Fund. This list of Covered Entities
would include:
- Van Kampen Investments Inc.
- Van Kampen Asset Management
- Van Kampen Advisors Inc.
- Van Kampen Funds Inc.
- Van Kampen Investor Services Inc.
- Morgan Stanley Investment Management Inc.
- Morgan Stanley Trust Company
- Morgan Stanley Investment Management Ltd.
- Morgan Stanley Investment Management Company
- Morgan Stanley Asset & Investment Trust Management Company Ltd.
(e)(2) Beginning with non-audit service contracts entered into on or after May
6, 2003, the audit committee also is required to pre-approve services to Covered
Entities to the extent that the services are determined to have a direct impact
on the operations or financial reporting of the Registrant. 100% of such
services were pre-approved by the audit committee pursuant to the Audit
Committee's pre-approval policies and procedures (included herein).
(f) Not applicable.
(g) See table above.
(h) The audit committee of the Board of Trustees has considered whether the
provision of services other than audit services performed by the auditors to the
Registrant and Covered Entities is compatible with maintaining the auditors'
independence in performing audit services.
Item 5. Audit Committee of Listed Registrants.
(a) The Fund has a separately-designated standing audit committee established in
accordance with Section 3(a)(58)(A) of the Exchange Act whose members are: R.
Craig Kennedy, Jerry D. Choate, Rod Dammeyer.
(b) Not applicable.
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-CSR
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) The Code of Ethics for Principal Executive and Senior Financial Officers is
attached hereto.
(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 Core Plus Fixed Income Fund
By: /s/ Ronald E. Robison
----------------------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: October 18, 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: October 18, 2007
By: /s/ Stuart N. Schuldt
----------------------------------
Name: Stuart N. Schuldt
Title: Principal Financial Officer
Date: October 18, 2007