UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-02424
Van Kampen Strategic Growth 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: 2/29/08
Item 1. Report to Shareholders.
The Fund's semiannual report transmitted to shareholders pursuant to Rule 30e-1
under the Investment Company Act of 1940 is as follows:
Welcome, Shareholder
In this report, you'll learn about how your investment in Van Kampen
Strategic Growth Fund performed during the semiannual period. The
portfolio management team will provide an overview of the market
conditions and discuss some of the factors that affected investment
performance during the reporting period. In addition, this report
includes the fund's financial statements and a list of fund investments
as of February 29, 2008.
THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY A CLASS A, B, AND C
SHARE OR CLASS I AND R SHARE PROSPECTUS FOR THE FUND BEING OFFERED. THE
PROSPECTUSES CONTAIN INFORMATION ABOUT THE FUND, INCLUDING THE INVESTMENT
OBJECTIVES, RISKS, CHARGES AND EXPENSES. TO OBTAIN AN ADDITIONAL
PROSPECTUS, CONTACT YOUR FINANCIAL ADVISOR OR DOWNLOAD ONE AT
VANKAMPEN.COM. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.
MARKET FORECASTS PROVIDED IN THIS REPORT MAY NOT NECESSARILY COME TO
PASS. THERE IS NO ASSURANCE THAT A MUTUAL FUND WILL ACHIEVE ITS
INVESTMENT OBJECTIVE. FUNDS ARE SUBJECT TO MARKET RISK, WHICH IS THE
POSSIBILITY THAT THE MARKET VALUES OF SECURITIES OWNED BY THE FUND WILL
DECLINE AND THAT THE VALUE OF FUND SHARES MAY THEREFORE 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 02/29/08
<Table>
<Caption>
A SHARES B SHARES C SHARES I SHARES R SHARES
since since since since since
10/02/70 04/20/92 7/06/93 10/16/00 10/01/02
- ----------------------------------------------------------------------------------------------------
AVERAGE W/MAX W/MAX W/MAX
ANNUAL W/O 5.75% W/O 5.00% W/O 1.00% W/O W/O
TOTAL SALES SALES SALES SALES SALES SALES SALES SALES
RETURNS CHARGES CHARGES CHARGES CHARGES CHARGES CHARGES CHARGES CHARGES
Since Inception 14.07% 13.89% 9.99% 9.99% 8.54% 8.54% -7.58% 7.03%
10-year 4.47 3.86 3.83 3.83 3.69 3.69 -- --
5-year 9.41 8.12 8.58 8.37 8.59 8.59 9.68 9.13
1-year 2.58 -3.33 1.83 -3.17 1.81 0.81 2.83 2.32
6-month -5.99 -11.39 -6.32 -11.01 -6.34 -7.28 -5.86 -6.10
- ----------------------------------------------------------------------------------------------------
</Table>
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NO GUARANTEE OF
FUTURE RESULTS, AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE FIGURES
SHOWN. FOR THE MOST RECENT MONTH-END PERFORMANCE FIGURES, PLEASE VISIT
VANKAMPEN.COM OR SPEAK WITH YOUR FINANCIAL ADVISOR. INVESTMENT RETURNS AND
PRINCIPAL VALUE WILL FLUCTUATE AND FUND SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THEIR ORIGINAL COST.
The returns shown in this report do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund shares.
Performance of share classes will vary due to differences in sales charges and
expenses. Average annual total return with sales charges includes payment of the
maximum sales charge of 5.75 percent for Class A shares, a contingent deferred
sales charge of 5.00 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. The since inception and 10-year returns for Class B shares reflect the
conversion of Class B shares into Class A shares eight years after purchase. The
since inception returns for Class C shares reflect the conversion of Class C
shares into Class A shares ten years after purchase. 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. Class I Shares are available for purchase
exclusively by investors through (i) tax exempt retirement plans with assets of
at least one million dollars (including 401(k) plans, 457 plans, employer
sponsored 403(b) plans, profit sharing and money purchase plans, defined benefit
plans and non-qualified deferred compensation plans), (ii) fee-based investment
programs with assets of at least one million dollars, (iii) qualified state
tuition plan (529 plan) accounts, (iv) institutional clients with assets of at
least $1 million and (v) certain Van Kampen investment companies. Class R Shares
are offered without any sales charges on purchases or sales. The combined Rule
12b-1 fees and service fees for Class R Shares is up to 0.50 percent. Class R
Shares are available for purchase exclusively by investors through certain
tax-exempt retirement plans (including 401(k) plans, 457 plans, employer
sponsored 403(b) plans, profit sharing and money purchase pension plans, defined
benefit plans and nonqualified deferred compensation plans) held in plan level
or omnibus accounts. Figures shown above assume reinvestment of all dividends
and capital gains.
The Russell 1000(R) Growth Index measures the performance of those Russell
1000(R) Index companies (the 1000 largest U.S. companies) with higher
price-to-book ratios and higher forecasted growth values. The index does not
include any expenses, fees or sales charges, which would lower performance. The
index is unmanaged and should not be considered an investment.
1
Fund Report
FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 29, 2008
MARKET CONDITIONS
Volatility roiled the U.S. financial markets for the six-month period ended
February 29, 2008. The period began in a tumultuous state as investors faced an
almost constant stream of news regarding increasing home foreclosures, followed
by announced bankruptcies at a number of mortgage lenders and the subsequent
demise of several hedge funds invested in subprime-related securities. As a
result, credit standards began to tighten across the board, removing much of the
low-cost liquidity that had helped support the merger and acquisition (M&A) boom
and stocks' robust gains for the past several years. As the contagion from the
subprime mortgage market collapse spread throughout the equity and fixed income
markets, several large financial institutions declared asset losses in the
billions of dollars due to their exposure to mortgage securities. Amid this
turmoil, prices on food and energy continued to steadily rise, and consumer
spending--a key factor in domestic economic growth for the past several
years--decreased significantly. These events were reflected in the fourth
quarter economic data, which included weak manufacturing and negative employment
data for the period. Furthermore, preliminary estimates of gross domestic
product (GDP) growth slowed to 0.6 percent, significantly down from the real GDP
growth of the previous quarter.
In response to the market turbulence, the Federal Open Market Committee (the
"Fed") lowered the target federal funds rate five times between September and
January to 3.0% and offered an instant source of liquidity through billions in
short-term loans via the Term Auction Facility, a newly-created structure where
banks could borrow funds at market rates, as well as the traditional Fed
discount window. Furthermore, in January 2008, the federal government adopted an
economic stimulus plan designed to bolster consumer spending in which taxpayers
of a certain threshold would receive rebate checks for themselves and their
families. Although the markets briefly rallied following each announced action,
by the end of the period the broad market returns were in negative territory as
investors faced the likelihood of an economic recession in the near term.
2
PERFORMANCE ANALYSIS
All share classes of Van Kampen Strategic Growth Fund outperformed the Russell
1000(R) Growth Index for the six months ended February 29, 2008, assuming no
deduction of applicable sales charges.
TOTAL RETURNS FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 29, 2008
<Table>
<Caption>
- -----------------------------------------------------------------------------
RUSSELL 1000(R)
CLASS A CLASS B CLASS C CLASS I CLASS R GROWTH INDEX
-5.99% -6.32% -6.34% -5.86% -6.10% -6.56%
- -----------------------------------------------------------------------------
</Table>
The performance for the five share classes varies because each has different
expenses. The Fund's total return figures assume the reinvestment of all
distributions, but do not reflect the deduction of any applicable sales charges.
Such costs would lower performance. Past performance is no guarantee of future
results. See Performance Summary for standardized performance information and
index definition.
For the six-month period, the sectors that most positively contributed to the
Fund's performance were materials and processing, other energy, technology, and
utilities. In the materials and processing sector, investment in a single
agriculture fishing and ranching holding drove outperformance, as did an
overweight allocation. Stock selection in the other energy sector was also a
leading contributor to relative returns, which helped to more than offset the
detrimental effect of an underweight allocation. Within the sector, areas of
strength included crude oil producers and oil well equipment. In the technology
sector, stock selection in semiconductors, computer services software and
systems, communications technology, and computer technology along with an
underweight allocation was advantageous to performance. The Fund's stock
selection within the utilities sector also added to relative returns.
In contrast, the sectors that detracted from the Fund's performance during the
period were consumer discretionary, financial services, and consumer staples.
Stock selection and a large sector overweight in the consumer discretionary
sector was the main detractor from relative returns. Within the sector, areas of
weakness were commercial services, retail, hotel/motel, consumer electronics,
and restaurants. In the financial services sector, a modest overweight
allocation had a negative impact on performance, as did selection in the
diversified financial services, multi-line insurance and financial information
services segments. Furthermore, although security selection in the consumer
staples sector added to relative returns, this beneficial effect was greatly
overshadowed by the sector's underweight position.
3
At the end of the period, consumer discretionary represented the largest sector
weight and overweight in the Fund, followed by the technology and materials and
processing sectors. The technology sector was underweight versus the Russell
1000 Growth Index, while the materials and processing sector was overweight
relative to the Index.
There is no guarantee that any sectors mentioned will continue to perform as
discussed herein or that securities in such sectors will be held by the Fund in
the future.
4
<Table>
<Caption>
TOP TEN HOLDINGS AS OF 2/29/08
Monsanto Co. 9.0%
Ultra Petroleum Corp. 6.3
Google, Inc., Class A 5.8
Amazon.com, Inc. 4.7
Brookfield Asset Management, Inc., Class A 4.5
Research In Motion, Ltd. 4.1
eBay, Inc. 3.8
Wynn Resorts, Ltd. 3.3
Berkshire Hathaway, Inc., Class B 3.1
America Movil, SA de CV, Ser L--ADR 2.6
<Caption>
SUMMARY OF INVESTMENTS BY INDUSTRY CLASSIFICATION AS OF 2/29/08
Internet Software & Services 14.1%
Fertilizers & Agricultural Chemicals 9.0
Oil & Gas Exploration & Production 8.3
Communications Equipment 6.2
Internet Retail 4.7
Real Estate Management & Development 4.5
Wireless Telecommunication Services 4.0
Construction Materials 3.6
Air Freight & Logistics 3.3
Casinos & Gaming 3.3
Property & Casualty Insurance 3.1
Multi-Line Insurance 2.5
Consumer Finance 2.4
Data Processing & Outsourced Services 2.4
Restaurants 2.3
Computer Hardware 2.2
Apparel Retail 2.1
Distributors 1.9
Apparel, Accessories & Luxury Goods 1.8
Department Stores 1.7
Specialized Finance 1.6
Tobacco 1.5
Advertising 1.5
Pharmaceuticals 1.5
Asset Management & Custody Banks 1.4
Marine Ports & Services 1.4
Steel 1.3
Life Sciences Tools & Services 1.1
Systems Software 1.1
Multi-Utilities 1.0
Environmental & Facilities Services 0.9
Human Resource & Employment Services 0.9
</Table>
<Table>
(continued on next page)
</Table>
5
<Table>
<Caption>
SUMMARY OF INVESTMENTS BY INDUSTRY CLASSIFICATION AS OF 2/29/08
(continued from previous page)
Health Care Equipment 0.6
Diversified Commercial & Professional Services 0.5
-----
Total Long-Term Investments 99.7
Total Repurchase Agreements 0.7
-----
Total Investments 100.4
Foreign Currency 0.0*
Liabilities in Excess of Other Assets (0.4)
-----
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. All percentages 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 P.O.
Box 219286, Kansas City, MO 64121-9286. 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 Class C
Shares; and redemption fees; and (2) ongoing costs, including management fees;
distribution and service (12b-1) fees; and other Fund expenses. This example is
intended to help you understand your ongoing costs (in dollars) of investing in
the Fund and to compare these costs with the ongoing costs of investing in other
mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period 9/1/07-2/29/08.
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*
------------------------------------------------
9/1/07 2/29/08 9/1/07-2/29/08
Class A
Actual...................................... $1,000.00 $ 940.12 $5.35
Hypothetical................................ 1,000.00 1,019.34 5.57
(5% annual return before expenses)
Class B
Actual...................................... 1,000.00 936.77 8.86
Hypothetical................................ 1,000.00 1,015.71 9.22
(5% annual return before expenses)
Class C
Actual...................................... 1,000.00 936.61 9.00
Hypothetical................................ 1,000.00 1,015.56 9.37
(5% annual return before expenses)
Class I
Actual...................................... 1,000.00 941.35 4.15
Hypothetical................................ 1,000.00 1,020.59 4.32
(5% annual return before expenses)
Class R
Actual...................................... 1,000.00 938.98 6.56
Hypothetical................................ 1,000.00 1,018.10 6.82
(5% annual return before expenses)
</Table>
* Expenses are equal to the Fund's annualized expense ratio of 1.11%, 1.84%,
1.87%, 0.86% and 1.36% for Class A, B, C, I and R Shares, respectively,
multiplied by the average account value over the period, multiplied by
182/366 (to reflect the one-half year period). The Class B expense ratio
reflects actual 12b-1 fees of less than 1%.
Assumes all dividends and distributions were reinvested.
9
VAN KAMPEN STRATEGIC GROWTH FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 29, 2008 (UNAUDITED)
<Table>
<Caption>
NUMBER OF
DESCRIPTION SHARES VALUE
- -----------------------------------------------------------------------------------------
COMMON STOCKS 99.7%
ADVERTISING 1.5%
Aeroplan Income Fund (Canada)............................... 2,191,094 $ 45,079,658
Aeroplan Income Fund (Canada) (a) (b)....................... 137,528 2,829,507
--------------
47,909,165
--------------
AIR FREIGHT & LOGISTICS 3.3%
C.H. Robinson Worldwide, Inc. .............................. 1,244,889 63,203,015
Expeditors International of Washington, Inc. ............... 1,099,845 43,245,905
--------------
106,448,920
--------------
APPAREL, ACCESSORIES & LUXURY GOODS 1.8%
Coach, Inc. (a)............................................. 1,851,236 56,129,476
--------------
APPAREL RETAIL 2.1%
Abercrombie & Fitch Co., Class A............................ 856,278 66,387,233
--------------
ASSET MANAGEMENT & CUSTODY BANKS 1.4%
Franklin Resources, Inc. ................................... 488,632 46,112,202
--------------
CASINOS & GAMING 3.3%
Wynn Resorts, Ltd. ......................................... 1,040,156 104,743,709
--------------
COMMUNICATIONS EQUIPMENT 6.2%
Cisco Systems, Inc. (a)..................................... 2,685,748 65,451,679
Research In Motion, Ltd. (Canada) (a)....................... 1,265,220 131,329,836
--------------
196,781,515
--------------
COMPUTER HARDWARE 2.2%
Apple, Inc. (a)............................................. 574,039 71,766,356
--------------
CONSTRUCTION MATERIALS 3.6%
Cemex, SAB de CV --ADR (Mexico) (a)......................... 2,582,370 71,144,294
Martin Marietta Materials, Inc.............................. 405,367 43,617,489
--------------
114,761,783
--------------
CONSUMER FINANCE 2.4%
American Express Co. ....................................... 1,839,405 77,806,831
--------------
DATA PROCESSING & OUTSOURCED SERVICES 2.4%
MasterCard, Inc., Class A................................... 404,083 76,775,770
--------------
DEPARTMENT STORES 1.7%
Sears Holdings Corp. (a).................................... 554,904 53,059,920
--------------
DISTRIBUTORS 1.9%
Li & Fung, Ltd. (Bermuda)................................... 16,626,000 59,766,273
--------------
DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES 0.5%
Corporate Executive Board Co. .............................. 387,717 15,745,187
--------------
</Table>
10 See Notes to Financial Statements
VAN KAMPEN STRATEGIC GROWTH FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
<Table>
<Caption>
NUMBER OF
DESCRIPTION SHARES VALUE
- -----------------------------------------------------------------------------------------
ENVIRONMENTAL & FACILITIES SERVICES 0.9%
Stericycle, Inc. (a)........................................ 531,445 $ 28,639,571
--------------
FERTILIZERS & AGRICULTURAL CHEMICALS 9.0%
Monsanto Co. ............................................... 2,478,373 286,698,189
--------------
HEALTH CARE EQUIPMENT 0.6%
Gen-Probe, Inc. (a)......................................... 381,865 18,256,966
--------------
HUMAN RESOURCE & EMPLOYMENT SERVICES 0.9%
Monster Worldwide, Inc. (a)................................. 1,033,412 27,478,425
--------------
INTERNET RETAIL 4.7%
Amazon.com, Inc. (a)........................................ 2,304,679 148,582,655
--------------
INTERNET SOFTWARE & SERVICES 14.1%
Baidu.com, Inc.--ADR (Cayman Islands) (a)................... 167,703 42,148,795
eBay, Inc. (a).............................................. 4,536,292 119,576,657
Google, Inc., Class A (a)................................... 390,456 183,975,058
Tencent Holdings, Ltd. (Cayman Islands)..................... 6,205,200 38,428,349
Yahoo!, Inc. (a)............................................ 2,385,899 66,280,274
--------------
450,409,133
--------------
LIFE SCIENCES TOOLS & SERVICES 1.1%
Illumina, Inc. (a).......................................... 501,320 36,300,581
--------------
MARINE PORTS & SERVICES 1.4%
China Merchants Holdings International Co., Ltd. (Hong
Kong)..................................................... 8,118,000 43,546,589
--------------
MULTI-LINE INSURANCE 2.5%
Loews Corp. ................................................ 1,887,893 78,989,443
--------------
MULTI-UTILITIES 1.0%
Veolia Environnement--ADR (France).......................... 377,072 33,578,262
--------------
OIL & GAS EXPLORATION & PRODUCTION 8.3%
Southwestern Energy Co. (a)................................. 971,173 63,349,615
Ultra Petroleum Corp. (Canada) (a).......................... 2,564,490 201,235,530
--------------
264,585,145
--------------
PHARMACEUTICALS 1.5%
Allergan, Inc. ............................................. 792,050 46,913,121
--------------
PROPERTY & CASUALTY INSURANCE 3.1%
Berkshire Hathaway, Inc., Class B (a)....................... 21,001 98,169,175
--------------
REAL ESTATE MANAGEMENT & DEVELOPMENT 4.5%
Brookfield Asset Management, Inc., Class A (Canada)......... 4,784,385 141,857,015
--------------
</Table>
See Notes to Financial Statements 11
VAN KAMPEN STRATEGIC GROWTH FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
<Table>
<Caption>
NUMBER OF
DESCRIPTION SHARES VALUE
- -----------------------------------------------------------------------------------------
RESTAURANTS 2.3%
Starbucks Corp. (a)......................................... 4,093,919 $ 73,567,724
--------------
SPECIALIZED FINANCE 1.6%
CME Group, Inc. ............................................ 99,201 50,919,873
--------------
STEEL 1.3%
Nucor Corp. ................................................ 627,138 40,494,301
--------------
SYSTEMS SOFTWARE 1.1%
VMware, Inc., Class A (a)................................... 599,752 35,187,450
--------------
TOBACCO 1.5%
Altria Group, Inc. ......................................... 661,589 48,388,619
--------------
WIRELESS TELECOMMUNICATION SERVICES 4.0%
America Movil, SA de CV, Ser L--ADR (Mexico)................ 1,385,642 83,775,915
China Mobile, Ltd.--ADR (Hong Kong)......................... 581,939 43,424,288
--------------
127,200,203
--------------
TOTAL LONG-TERM INVESTMENTS 99.7%
(Cost $3,426,476,898)................................................. 3,173,956,780
--------------
REPURCHASE AGREEMENTS 0.7%
Banc of America Securities ($8,539,564 par collateralized by U.S.
Government obligations in a pooled cash account, interest rate of
3.16%, dated 02/29/08, to be sold on 03/03/08 at $8,541,813).......... 8,539,564
Citigroup Global Markets, Inc. ($7,590,724 par collateralized by U.S.
Government obligations in a pooled cash account, interest rate of
3.05%, dated 02/29/08, to be sold on 03/03/08 at $7,592,653).......... 7,590,724
State Street Bank & Trust Co. ($5,190,712 par collateralized by U.S.
Government obligations in a pooled cash account, interest rate of
2.66%, dated 02/29/08, to be sold on 03/03/08 at $5,191,862).......... 5,190,712
--------------
</Table>
12 See Notes to Financial Statements
VAN KAMPEN STRATEGIC GROWTH FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
<Table>
<Caption>
DESCRIPTION VALUE
- -----------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS 0.7%
(Cost $21,321,000)...................................................... $ 21,321,000
--------------
TOTAL INVESTMENTS 100.4%
(Cost $3,447,797,898)................................................. 3,195,277,780
FOREIGN CURRENCY 0.0%
(Cost $59,884)........................................................ 61,342
LIABILITIES IN EXCESS OF OTHER ASSETS (0.4%)........................... (12,987,250)
--------------
NET ASSETS 100.0%...................................................... $3,182,351,872
==============
</Table>
Percentages are calculated as a percentage of net assets.
Securities with total market value equal to $141,741,211 have been valued at
their fair value as determined in good faith under procedures established by and
under the general supervision of the Fund's Trustees.
(a) Non-income producing security as this stock currently does not declare
income dividends.
(b) 144A-Private Placement security which is exempt from registration under Rule
144A of the Securities Act of 1933, as amended. This security may only be
resold in transactions exempt from registration which are normally those
transactions with qualified institutional buyers.
ADR--American Depositary Receipt
See Notes to Financial Statements 13
VAN KAMPEN STRATEGIC GROWTH FUND
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
February 29, 2008 (Unaudited)
<Table>
ASSETS:
Total Investments (Cost $3,447,797,898)..................... $ 3,195,277,780
Foreign Currency (Cost $59,884)............................. 61,342
Cash........................................................ 213
Receivables:
Fund Shares Sold.......................................... 781,741
Dividends................................................. 559,094
Interest.................................................. 1,776
Other....................................................... 668,739
---------------
Total Assets............................................ 3,197,350,685
---------------
LIABILITIES:
Payables:
Fund Shares Repurchased................................... 3,841,696
Distributor and Affiliates................................ 3,782,386
Investments Purchased..................................... 3,201,270
Investment Advisory Fee................................... 1,188,200
Trustees' Deferred Compensation and Retirement Plans........ 703,659
Accrued Expenses............................................ 2,281,602
---------------
Total Liabilities....................................... 14,998,813
---------------
NET ASSETS.................................................. $ 3,182,351,872
===============
NET ASSETS CONSIST OF:
Capital (Par value of $0.01 per share with an unlimited
number of shares authorized).............................. $ 7,710,612,409
Net Unrealized Depreciation................................. (252,519,323)
Accumulated Net Investment Loss............................. (1,948,953)
Accumulated Net Realized Loss............................... (4,273,792,261)
---------------
NET ASSETS.................................................. $ 3,182,351,872
===============
MAXIMUM OFFERING PRICE PER SHARE:
Class A Shares:
Net asset value and redemption price per share (Based on
net assets of $2,228,762,692 and 50,882,664 shares of
beneficial interest issued and outstanding)............. $ 43.80
Maximum sales charge (5.75%* of offering price)......... 2.67
---------------
Maximum offering price to public........................ $ 46.47
===============
Class B Shares:
Net asset value and offering price per share (Based on
net assets of $766,373,719 and 20,862,337 shares of
beneficial interest issued and outstanding)............. $ 36.73
===============
Class C Shares:
Net asset value and offering price per share (Based on
net assets of $159,771,631 and 4,240,490 shares of
beneficial interest issued and outstanding)............. $ 37.68
===============
Class I Shares:
Net asset value and offering price per share (Based on
net assets of $25,130,128 and 563,244 shares of
beneficial interest issued and outstanding)............. $ 44.62
===============
Class R Shares:
Net asset value and offering price per share (Based on
net assets of $2,313,702 and 53,512 shares of beneficial
interest issued and outstanding)........................ $ 43.24
===============
</Table>
* On sales of $50,000 or more, the sales charge will be reduced
14 See Notes to Financial Statements
VAN KAMPEN STRATEGIC GROWTH FUND
FINANCIAL STATEMENTS continued
Statement of Operations
For the Six Months Ended February 29, 2008 (Unaudited)
<Table>
INVESTMENT INCOME:
Dividends (Net of foreign withholding taxes of $897,479).... $ 20,358,363
Interest.................................................... 2,805,341
-------------
Total Income............................................ 23,163,704
-------------
EXPENSES:
Distribution (12b-1) and Service Fees
Class A................................................... 3,119,509
Class B................................................... 4,548,089
Class C................................................... 926,395
Class R................................................... 6,203
Investment Advisory Fee..................................... 8,343,305
Transfer Agent Fees......................................... 6,786,821
Reports to Shareholders..................................... 245,409
Accounting and Administrative Expenses...................... 234,455
Professional Fees........................................... 77,830
Custody..................................................... 70,376
Registration Fees........................................... 54,542
Trustees' Fees and Related Expenses......................... 44,789
Other....................................................... 56,569
-------------
Total Expenses.......................................... 24,514,292
Less Credits Earned on Cash Balances.................... 73,011
-------------
Net Expenses............................................ 24,441,281
-------------
NET INVESTMENT LOSS......................................... $ (1,277,577)
=============
REALIZED AND UNREALIZED GAIN/LOSS:
Realized Gain/Loss:
Investments............................................... $ 732,126,279
Foreign Currency Transactions............................. 1,120,147
-------------
Net Realized Gain........................................... 733,246,426
-------------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 670,123,270
-------------
End of the Period:
Investments............................................. (252,520,118)
Foreign Currency Translation............................ 795
-------------
(252,519,323)
-------------
Net Unrealized Depreciation During the Period............... (922,642,593)
-------------
NET REALIZED AND UNREALIZED LOSS............................ $(189,396,167)
=============
NET DECREASE IN NET ASSETS FROM OPERATIONS.................. $(190,673,744)
=============
</Table>
See Notes to Financial Statements 15
VAN KAMPEN STRATEGIC GROWTH FUND
FINANCIAL STATEMENTS continued
Statements of Changes in Net Assets (Unaudited)
<Table>
<Caption>
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 29, 2008 AUGUST 31, 2007
-----------------------------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Loss..................................... $ (1,277,577) $ (15,303,162)
Net Realized Gain....................................... 733,246,426 418,964,413
Net Unrealized Appreciation/Depreciation During the
Period................................................ (922,642,593) 279,433,155
-------------- ---------------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES..... (190,673,744) 683,094,406
-------------- ---------------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold............................... 188,480,407 361,164,686
Cost of Shares Repurchased.............................. (587,113,830) (1,533,900,373)
-------------- ---------------
NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS...... (398,633,423) (1,172,735,687)
-------------- ---------------
TOTAL DECREASE IN NET ASSETS............................ (589,307,167) (489,641,281)
NET ASSETS:
Beginning of the Period................................. 3,771,659,039 4,261,300,320
-------------- ---------------
End of the Period (Including accumulated net investment
loss of $1,948,953 and $671,376, respectively)........ $3,182,351,872 $ 3,771,659,039
============== ===============
</Table>
16 See Notes to Financial Statements
VAN KAMPEN STRATEGIC GROWTH FUND
FINANCIAL HIGHLIGHTS (UNAUDITED)
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE
FUND OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED AUGUST 31,
CLASS A SHARES FEBRUARY 29, ----------------------------------------------------
2008 2007 2006 2005 2004 2003
-------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF
THE PERIOD................... $ 46.59 $ 39.41 $ 39.84 $ 34.14 $ 34.08 $ 30.96
-------- -------- -------- -------- -------- --------
Net Investment
Income/Loss (a)............ 0.04 (0.05) (0.12) -0-(c) (0.16) (0.18)
Net Realized and Unrealized
Gain/Loss.................. (2.83) 7.23 (0.31) 5.70 0.22 3.30
-------- -------- -------- -------- -------- --------
Total from Investment
Operations................... (2.79) 7.18 (0.43) 5.70 0.06 3.12
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF THE
PERIOD....................... $ 43.80 $ 46.59 $ 39.41 $ 39.84 $ 34.14 $ 34.08
======== ======== ======== ======== ======== ========
Total Return (b)............... -5.99%* 18.22% -1.08% 16.70% 0.18% 10.08%
Net Assets at End of the Period
(In millions)................ $2,228.8 $2,546.7 $2,727.5 $3,240.5 $3,663.9 $4,222.8
Ratio of Expenses to Average
Net Assets................... 1.11% 1.13% 1.09% 1.14% 1.08% 1.15%
Ratio of Net Investment
Income/Loss to Average Net
Assets....................... 0.15% (0.13%) (0.29%) (0.00%) (0.46%) (0.61%)
Portfolio Turnover............. 111%* 111% 109% 100% 177% 180%
</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 5.75% 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. These returns
include combined Rule 12b-1 fees and service fees of up to .25% and do not
reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption of Fund shares.
(c) Amount is less than $.01.
See Notes to Financial Statements 17
VAN KAMPEN STRATEGIC GROWTH FUND
FINANCIAL HIGHLIGHTS (UNAUDITED) continued
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE
FUND OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED AUGUST 31,
CLASS B SHARES FEBRUARY 29, --------------------------------------------------
2008 2007 2006 2005 2004 2003
-----------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF
THE PERIOD................... $ 39.22 $33.42 $ 34.05 $ 29.40 $ 29.57 $ 27.07
------- ------ -------- -------- -------- --------
Net Investment Loss (a)...... (0.12) (0.33) (0.37) (0.25) (0.38) (0.36)
Net Realized and Unrealized
Gain/Loss.................. (2.37) 6.13 (0.26) 4.90 0.21 2.86
------- ------ -------- -------- -------- --------
Total from Investment
Operations................... (2.49) 5.80 (0.63) 4.65 (0.17) 2.50
------- ------ -------- -------- -------- --------
NET ASSET VALUE, END OF THE
PERIOD....................... $ 36.73 $39.22 $ 33.42 $ 34.05 $ 29.40 $ 29.57
======= ====== ======== ======== ======== ========
Total Return (b)............... -6.32%(c)* 17.35% -1.85% 15.82% -0.57% 9.24%
Net Assets at End of the Period
(In millions)................ $ 766.4 $982.2 $1,237.7 $1,731.5 $2,010.4 $2,346.3
Ratio of Expenses to Average
Net Assets................... 1.84%(c) 1.89% 1.85% 1.90% 1.85% 1.91%
Ratio of Net Investment Loss to
Average Net Assets........... (0.59%)(c) (0.89%) (1.05%) (0.76%) (1.23%) (1.37%)
Portfolio Turnover............. 111%* 111% 109% 100% 177% 180%
</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 5%, charged on certain redemptions
made within one year of purchase and declining to 0% after the fifth year.
If the sales charge was included, total returns would be lower. These
returns include combined Rule 12b-1 fees and service fees of up to 1% and do
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
Investment Loss to Average Net Assets reflect actual 12b-1 fees of less than
1% (See footnote 6).
18 See Notes to Financial Statements
VAN KAMPEN STRATEGIC GROWTH FUND
FINANCIAL HIGHLIGHTS (UNAUDITED) continued
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE
FUND OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED AUGUST 31,
CLASS C SHARES FEBRUARY 29, ----------------------------------------------
2008 2007 2006 2005 2004 2003
--------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF
THE PERIOD................... $40.23 $34.28 $34.92 $30.16 $30.34 $27.75
------ ------ ------ ------ ------ ------
Net Investment Loss (a)...... (0.13) (0.34) (0.38) (0.25) (0.39) (0.36)
Net Realized and Unrealized
Gain/Loss.................. (2.42) 6.29 (0.26) 5.01 0.21 2.95
------ ------ ------ ------ ------ ------
Total from Investment
Operations................... (2.55) 5.95 (0.64) 4.76 (0.18) 2.59
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF THE
PERIOD....................... $37.68 $40.23 $34.28 $34.92 $30.16 $30.34
====== ====== ====== ====== ====== ======
Total Return (b)............... -6.34%* 17.36% -1.83% 15.78% -0.59% 9.33%(c)
Net Assets at End of the Period
(In millions)................ $159.8 $190.2 $238.4 $332.8 $430.2 $570.1
Ratio of Expenses to Average
Net Assets................... 1.87% 1.89% 1.85% 1.90% 1.85% 1.91%
Ratio of Net Investment Loss to
Average Net Assets........... (0.61%) (0.89%) (1.05%) (0.75%) (1.23%) (1.34%)(c)
Portfolio Turnover............. 111%* 111% 109% 100% 177% 180%
</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. These returns include combined Rule 12b-1 fees and
service fees of up to 1% and do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption on Fund
shares.
(c) Certain non-recurring payments were made to Class C Shares, resulting in an
increase to the Total Return and Ratio of Net Investment Loss to Average Net
Assets of .03%.
See Notes to Financial Statements 19
VAN KAMPEN STRATEGIC GROWTH FUND
FINANCIAL HIGHLIGHTS (UNAUDITED) continued
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE
FUND OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED AUGUST 31,
CLASS I SHARES FEBRUARY 29, ------------------------------------------
2008 2007 2006 2005 2004 2003
---------------------------------------------------------
NET ASSET VALUE, BEGINNING OF THE
PERIOD............................. $47.40 $39.99 $40.33 $34.47 $34.33 $31.10
------ ------ ------ ------ ------ ------
Net Investment Income/Loss (a)..... 0.11 0.05 (0.01) 0.07 (0.08) (0.11)
Net Realized and Unrealized
Gain/Loss........................ (2.89) 7.36 (0.33) 5.79 0.22 3.34
------ ------ ------ ------ ------ ------
Total from Investment Operations..... (2.78) 7.41 (0.34) 5.86 0.14 3.23
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF THE PERIOD... $44.62 $47.40 $39.99 $40.33 $34.47 $34.33
====== ====== ====== ====== ====== ======
Total Return (b)..................... -5.86%* 18.53% -0.84% 17.00% 0.41% 10.39%
Net Assets at End of the Period (In
millions).......................... $ 25.1 $ 50.0 $ 55.6 $ 55.0 $ 31.8 $ 33.9
Ratio of Expenses to Average Net
Assets............................. 0.86% 0.88% 0.84% 0.90% 0.84% 0.90%
Ratio of Net Investment Income/Loss
to Average Net Assets.............. 0.43% 0.12% (0.03%) 0.20% (0.21%) (0.36%)
Portfolio Turnover................... 111%* 111% 109% 100% 177% 180%
</Table>
* Non-Annualized
(a) Based on average shares outstanding.
(b) Assumes reinvestment of all distributions for the period. These returns do
not reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemptions of Fund shares.
20 See Notes to Financial Statements
VAN KAMPEN STRATEGIC GROWTH FUND
FINANCIAL HIGHLIGHTS (UNAUDITED) continued
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE
FUND OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
<Table>
<Caption>
SIX MONTHS OCTOBER 1, 2002
ENDED YEAR ENDED AUGUST 31, (COMMENCEMENT OF
CLASS R SHARES FEBRUARY 29, ------------------------------------ OPERATIONS TO
2008 2007 2006 2005 2004 AUGUST 31, 2003
----------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF THE PERIOD.............. $46.05 $39.08 $39.58 $34.02 $34.04 $29.94
------ ------ ------ ------ ------ ------
Net Investment Loss (a).... (0.02) (0.14) (0.19) (0.04) (0.24) (0.24)
Net Realized and Unrealized
Gain/Loss................ (2.79) 7.11 (0.31) 5.60 0.22 4.34
------ ------ ------ ------ ------ ------
Total from Investment
Operations................. (2.81) 6.97 (0.50) 5.56 (0.02) 4.10
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF THE
PERIOD..................... $43.24 $46.05 $39.08 $39.58 $34.02 $34.04
====== ====== ====== ====== ====== ======
Total Return (b)............ -6.10%* 17.84% -1.26%(c) 16.34% -0.06% 13.69%*
Net Assets at End of the
Period (In millions)....... $ 2.3 $ 2.5 $ 2.0 $ 2.0 $ 20.0 $ 0.5
Ratio of Expenses to Average
Net Assets................. 1.36% 1.38% 1.27%(c) 1.37% 1.33% 1.41%
Ratio of Net Investment Loss
to Average Net Assets...... (0.10%) (0.34%) (0.47%)(c) (0.11%) (0.65%) (0.85%)
Portfolio Turnover.......... 111%* 111% 109% 100% 177% 180%
</Table>
* Non-Annualized
(a) Based on average shares outstanding.
(b) Assumes reinvestment of all distributions for the period. These returns
include combined Rule 12b-1 fees and service fees of up to .50% and do not
reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemptions of Fund shares.
(c) The Total Return, Ratio of Expenses to Average Net Assets, and Ratio of Net
Investment Loss to Average Net Assets reflect actual 12b-1 fees of less than
.50%.
See Notes to Financial Statements 21
VAN KAMPEN STRATEGIC GROWTH FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 29, 2008 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen Strategic Growth Fund (the "Fund") is organized as 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 capital appreciation. The Fund
commenced investment operations on October 2, 1970. The Fund offers Class A
Shares, Class B Shares, Class C Shares, Class I Shares and Class R 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 Investments in securities listed on a securities exchange
are valued at their last sale price as of the close of such securities exchange.
Equity securities traded on NASDAQ are valued at the NASDAQ Official Closing
Price. 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,
valuations are determined in accordance with procedures established in good
faith by the Board of Trustees. Short-term securities with remaining maturities
of 60 days or less are valued at amortized cost, which approximates market
value.
B. SECURITY TRANSACTIONS Security transactions are recorded on a trade date
basis. Realized gains and losses are determined on an identified cost basis.
The Fund may invest in repurchase agreements, which are short-term
investments whereby 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.
C. INCOME AND EXPENSES Dividend income is recorded on the ex-dividend date and
interest income is recorded on an accrual basis. 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
22
VAN KAMPEN STRATEGIC GROWTH FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
and to distribute substantially all of its taxable income to its shareholders.
Therefore, no provision for federal income taxes is required. The Fund may be
subject to taxes imposed by countries in which it invests. Such taxes are
generally based on income earned or gains realized or repatriated. Taxes are
accrued and applied to net investment income, net realized capital gains and net
unrealized appreciation, as applicable, as the income is earned or capital gains
are recorded. The Fund adopted the provisions of the Financial Accounting
Standards Board ("FASB") Interpretation No. 48 ("FIN 48") Accounting for
Uncertainty in Income Taxes on February 29, 2008. FIN 48 sets forth a minimum
threshold for financial statement recognition of the benefit of a tax position
taken or expected to be taken in a tax return. The implementation of FIN 48 did
not result in any unrecognized tax benefits in the accompanying financial
statements. If applicable, the Fund recognizes interest accrued related to
unrecognized tax benefits in "Interest Expense" and penalties in "Other"
expenses on the Statement of Operations. The Fund files tax returns with the
U.S. Internal Revenue Service and various states. Generally, each of the tax
years in the four year period ended August 31, 2007, remains subject to
examination by taxing authorities.
The Fund intends to utilize provisions of the federal income tax laws which
allow it to carry a realized capital loss forward for eight years following the
year of loss and offset such losses against any future realized capital gains.
During the prior fiscal year, the Fund utilized capital losses carried forward
of $419,806,059. At August 31, 2007, the Fund had an accumulated capital loss
carryforward for tax purposes of $5,006,227,572, which will expire according to
the following schedule.
<Table>
<Caption>
AMOUNT EXPIRATION
$2,253,729,859 ........................................................... August 31, 2010
2,752,497,713 ........................................................... August 31, 2011
</Table>
At February 29, 2008, the cost and related gross unrealized appreciation and
depreciation were as follows:
<Table>
Cost of investments for tax purposes........................ $ 3,458,711,597
===============
Gross tax unrealized appreciation........................... $ 1,206,989,533
Gross tax unrealized depreciation........................... (1,470,423,350)
---------------
Net tax unrealized depreciation on investments.............. $ (263,433,817)
===============
</Table>
E. DISTRIBUTION OF INCOME AND GAINS The Fund declares and pays dividends at
least annually from net investment income and from net realized gains, if any.
Distributions from net realized gains for book purposes may include short-term
capital gains, which are included as ordinary income for tax purposes. There
were no distributions paid during the year ended August 31, 2007.
As of August 31, 2007, there were no distributable earnings on a tax basis.
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 sales
transactions.
F. CREDITS EARNED ON CASH BALANCES During the six months ended February 29,
2008, the Fund's custody fee was reduced by $73,011 as a result of credits
earned on cash balances.
23
VAN KAMPEN STRATEGIC GROWTH FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
G. FOREIGN CURRENCY TRANSLATION The market value of foreign securities, forward
foreign currency contracts and other assets and liabilities denominated in a
foreign currency are translated into U.S. dollars at the mean of the quoted bid
and ask 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. The cost of securities is determined
using historical exchange rates. Gains and losses on the sale of securities are
not segregated for financial reporting purposes between amounts arising from the
changes in exchange rates and amounts arising from changes in the market prices
of securities. Realized gains and losses on foreign currency include the net
realized amount from the sale of foreign currency and the amount realized
between trade date and settlement date on securities transactions. 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 $350 million.......................................... .575%
Next $350 million........................................... .525%
Next $350 million........................................... .475%
Over $1.05 billion.......................................... .425%
</Table>
For the six months ended February 29, 2008, the Fund recognized expenses of
approximately $40,100 representing legal services provided by Skadden, Arps,
Slate, Meagher & Flom LLP, counsel to the Fund, 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 Accounting Services and Chief Compliance Officer (CCO)
Employment agreements, the Adviser provides accounting services and the CCO
provides compliance services to the Fund. The costs of these services are
allocated to each fund. For the six months ended February 29, 2008, the Fund
recognized expenses of approximately $89,100 representing Van Kampen Investments
Inc.'s or its affiliates' (collectively "Van Kampen") cost of providing
accounting 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 Accounting Services and CCO Employment agreement are reported as
part of "Accounting and Administrative Expenses" on the Statement of Operations.
Van Kampen Investor Services Inc. (VKIS), an affiliate of the Adviser,
serves as the shareholder servicing agent for the Fund. For the six months ended
February 29, 2008, the Fund recognized expenses of approximately $5,417,900
representing transfer agency fees paid to VKIS. Transfer agency fees are
determined through negotiations with the Fund's Board of Trustees.
Certain officers and trustees of the Fund are also officers and directors of
Van Kampen. The Fund does not compensate its officers or trustees who are also
officers of Van Kampen.
The Fund provides deferred compensation and retirement plans for its
trustees who are not officers of Van Kampen. Under the deferred compensation
plan, trustees may elect to defer all or a portion of their compensation.
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
24
VAN KAMPEN STRATEGIC GROWTH FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
of those funds selected by the trustees. Investments in such funds of $526,731
are included in "Other" assets on the Statement of Assets and Liabilities at
February 29, 2008. 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 six months ended February 29, 2008, the Fund paid brokerage
commissions to Morgan Stanley DW Inc., an affiliate of the Adviser, totaling
$188,425.
For the six months ended February 29, 2008, Van Kampen, as Distributor for
the Fund, received net commissions on sales of the Fund's Class A Shares of
approximately $133,800 and contingent deferred sales charge (CDSC) on redeemed
shares of approximately $360,200. Sales charges do not represent expenses of the
Fund.
3. CAPITAL TRANSACTIONS
For the six months ended February 29, 2008 and the year ended August 31, 2007,
transactions were as follows:
<Table>
<Caption>
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 29, 2008 AUGUST 31, 2007
---------------------------- ------------------------------
SHARES VALUE SHARES VALUE
Sales:
Class A...................... 3,149,884 $ 150,734,546 6,544,066 $ 286,906,971
Class B...................... 456,832 18,401,378 1,315,980 48,489,603
Class C...................... 73,972 3,076,958 222,561 8,351,927
Class I...................... 311,084 15,837,432 357,770 15,645,437
Class R...................... 9,175 430,093 39,604 1,770,748
----------- ------------- ----------- ---------------
Total Sales.................... 4,000,947 $ 188,480,407 8,479,981 $ 361,164,686
=========== ============= =========== ===============
Repurchases:
Class A...................... (6,927,492) $(337,252,275) (21,091,877) $ (918,641,244)
Class B...................... (4,640,417) (185,843,526) (13,306,293) (491,004,084)
Class C...................... (562,080) (23,197,694) (2,448,340) (91,957,524)
Class I...................... (802,883) (40,391,281) (693,514) (30,627,206)
Class R...................... (8,939) (429,054) (38,720) (1,670,315)
----------- ------------- ----------- ---------------
Total Repurchases.............. (12,941,811) $(587,113,830) (37,578,744) $(1,533,900,373)
=========== ============= =========== ===============
</Table>
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 six months ended February 29, 2008, the Fund
received redemption fees of approximately $5,000 which are reported as part of
"Cost of Shares Repurchased" on the Statement of Changes in Net Assets. The per
share impact from redemption fees paid to the Fund was less than $0.01.
25
VAN KAMPEN STRATEGIC GROWTH FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
5. INVESTMENT TRANSACTIONS
During the period, the cost of purchases and proceeds from sales of investments,
excluding short-term investments, were $4,071,155,456 and $4,448,429,399,
respectively.
6. DISTRIBUTION 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, Class C Shares and Class R
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, up to 1.00% each of Class B and Class C average daily net assets and
up to .50% of Class R 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 $481,400 and $1,507,600
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.
7. 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.
8. 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. As of February 29, 2008, the Adviser does not believe the adoption
of SFAS 157 will impact the amounts reported in the financial statements,
however, additional disclosures will be required about the inputs used to
develop the measurements of fair value and the effect of certain measurements
reported on the Statement of Operations for a fiscal period.
9. FUND MERGER
On September 19, 2007, the Trustees of Van Kampen Strategic Growth Fund ("Target
Fund") announced its intention to merge the Target Fund into the Van Kampen Pace
Fund ("Acquiring Fund"). The Trustees of each of the funds have approved in
principal an agreement and plan of reorganization between the funds providing
for a transfer of assets and liabilities of the Target Fund to the Acquiring
Fund in exchange for shares of beneficial interest of the Acquiring Fund (the
"Reorganization"). The Reorganization is subject to the approval by the
shareholders of the Target Fund.
26
VAN KAMPEN STRATEGIC GROWTH 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.
522 Fifth Avenue
New York, New York 10036
SHAREHOLDER SERVICING AGENT
VAN KAMPEN INVESTOR SERVICES INC.
P.O. Box 219286
Kansas City, Missouri 64121-9286
CUSTODIAN
STATE STREET BANK
AND TRUST COMPANY
One Lincoln Street
Boston, Massachusetts 02111
LEGAL COUNSEL
SKADDEN, ARPS, SLATE,
MEAGHER & FLOM LLP
333 West Wacker Drive
Chicago, Illinois 60606
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
ERNST & YOUNG LLP
233 South Wacker Drive
Chicago, Illinois 60606
* "Interested persons" of the Fund, as defined in the Investment Company Act
of 1940, as amended.
27
Van Kampen Strategic Growth 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 Strategic Growth 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 Strategic Growth Fund
An Important Notice Concerning Our U.S. Privacy Policy continued
other financial institutions, or as otherwise required or permitted by law.
For example, some instances where we may disclose information about you to
non-affiliated third parties include: for servicing and processing
transactions, to offer our own products and services, to protect against
fraud, for institutional risk control, to respond to judicial process or to
perform services on our behalf. When we share personal information with
these companies, they are required to limit their use of personal
information to the particular purpose for which it was shared and they are
not allowed to share personal information with others except to fulfill that
limited purpose.
3. HOW DO WE PROTECT THE SECURITY AND CONFIDENTIALITY OF PERSONAL
INFORMATION WE COLLECT ABOUT YOU?
We maintain physical, electronic and procedural security measures to help
safeguard the personal information we collect about you. We have internal
policies governing the proper handling of client information. Third parties
that provide support or marketing services on our behalf may also receive
personal information, and we require them to adhere to confidentiality
standards with respect to such information.
Van Kampen Funds Inc.
1 Parkview Plaza - Suite 100
P.O. Box 5555
Oakbrook Terrace, IL 60181-5555
www.vankampen.com
Copyright (C)2008 Van Kampen Funds Inc.
All rights reserved. Member FINRA/SIPC.
16, 116, 216, 516, 316
EMGSAN 4/08
(VAN KAMPEN INVESTMENTS LOGO) IU08-02066P-Y02/08
Item 2. Code of Ethics.
Not applicable for semi-annual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable for semi-annual reports.
Item 6. Schedule of Investments.
Please refer to Item #1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. Controls and Procedures
(a) The Fund's principal executive officer and principal financial officer have
concluded that the Fund's disclosure controls and procedures are sufficient to
ensure that information required to be disclosed by the Fund in this Form N-CSRS
was recorded, processed, summarized and reported within the time periods
specified in the Securities and Exchange Commission's rules and forms, based
upon such officers' evaluation of these controls and procedures as of a date
within 90 days of the filing date of the report.
(b) There were no changes in the registrant's internal control over financial
reporting that occurred during the second fiscal quarter of the period covered
by this report that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting.
Item 12. Exhibits.
(1) Code of Ethics -- Not applicable for semi-annual reports.
(2)(a) A certification for the Principal Executive Officer of the registrant is
attached hereto as part of EX-99.CERT.
(2)(b) A certification for the Principal Financial Officer of the registrant is
attached hereto as part of EX-99.CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Van Kampen Strategic Growth Fund
By: /s/ Ronald E. Robison
---------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: April 17, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed by the following
persons on behalf of the registrant and in the capacities and on the dates
indicated.
By: /s/ Ronald E. Robison
---------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: April 17, 2008
By: /s/ Stuart N. Schuldt
---------------------
Name: Stuart N. Schuldt
Title: Principal Financial Officer
Date: April 17, 2008