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 811-02423
Van Kampen Corporate Bond 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
Corporate Bond 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 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>
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NOT FDIC INSURED OFFER NO BANK GUARANTEE MAY LOSE VALUE
---------------------------------------------------------------------------------------
NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY NOT A DEPOSIT
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</Table>
Performance Summary as of 2/29/08
<Table>
<Caption>
A SHARES B SHARES C SHARES I SHARES
since 9/23/71 since 9/28/92 since 8/30/93 since 8/12/05
- ---------------------------------------------------------------------------------------------------
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 7.58% 7.43% 5.46% 5.46% 4.87% 4.87% 4.24%
10-year 4.98 4.48 4.35 4.35 4.18 4.18 --
5-year 4.95 3.93 4.17 3.91 4.18 4.18 --
1-year 4.15 -0.79 3.38 -0.59 3.22 2.23 4.41
6-month 4.17 -0.74 3.79 -0.21 3.64 2.64 4.14
- ---------------------------------------------------------------------------------------------------
30-Day SEC Yield 4.30% 3.79% 3.76% 4.74%
</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 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. 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
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 non-qualified deferred compensation plans), (ii)
fee-based investment programs with assets of at least $1 million, (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 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 Lehman Brothers Corporate Bond Index is a market-weighted index of
investment-grade corporate fixed-rate debt issues with maturities of one year or
more. Lipper Corporate BBB Rated Index is an index of funds with similar
investment objectives as this fund. Indexes are unmanaged and do not include any
sales charges or fees. Such costs would lower performance. It is not possible to
invest directly in an index.
1
Fund Report
FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 29, 2008
MARKET CONDITIONS
The market was quite volatile throughout the six-month reporting period as the
residential housing downturn and contagion from the subprime mortgage market
persisted, leading to an ongoing contraction in liquidity and tighter credit
conditions. At the same time, weaker economic indicators released in the last
months of 2007 and early 2008 signaled the likelihood of an impending recession.
Together, these factors led to a prolonged flight to quality as investors
shunned riskier assets.
The Federal Open Market Committee (the "Fed") took various steps to add
liquidity to the financial system in an attempt to ease the ensuing liquidity
crisis and boost the economy, including five reductions in the target federal
funds rate, bringing the rate to 3.0 percent as of February 29, 2008. Although
U.S. Treasury yields fluctuated, the flight to quality pushed Treasury prices
generally higher and yields lower during the period, helping Treasuries to
outperform other fixed income sectors. The short end of the yield curve
experienced the most pronounced declines as Fed rate cuts drove yields there
lower, causing the curve to end the period steeper.
Within the corporate sector credit spreads widened sharply, bringing spread
levels closer to historical averages. Financials were particularly hard hit as
writedowns on mortgage related securities by major banks and Wall Street firms
hurt the sector's performance. Given the risk-averse environment, higher rated
securities outperformed those with lower ratings. Within the investment-grade
corporate sector, AAA issues outpaced middle investment grade issues, and
longer-term issues outperformed shorter-dated issues.
The mortgage-backed security (MBS) sector continued to struggle, with non-
agency mortgages experiencing the greatest declines. Much of the growth in
mortgage issuance in recent years has been in these non-traditional mortgages,
which offered more lenient borrowing terms and were thus available to a broader
set of borrowers. 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.
2
PERFORMANCE ANALYSIS
Van Kampen Corporate Bond Fund Classes A and I shares outperformed and Classes B
and C shares underperformed the Lehman Brothers Corporate Bond Index, while
Classes A, B and I shares outperformed and Class C shares underperformed the
Lipper Corporate BBB-Rated 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>
- -------------------------------------------------------------------------------------------
LEHMAN BROTHERS LIPPER CORPORATE
CLASS A CLASS B CLASS C CLASS I CORPORATE BOND INDEX BBB-RATED INDEX
4.17% 3.79% 3.64% 4.14% 3.91% 3.68%
- -------------------------------------------------------------------------------------------
</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 definitions.
One of the positive contributors to the Fund's performance during the period was
an underweighted allocation to corporate bonds relative to that of the Lehman
Brothers Corporate Bond Index as widening credit spreads were detrimental to the
sector's performance. While we are looking for areas to take advantage of recent
spread widening and add to corporate positions, we are cautious as we believe
the credit market remains vulnerable to potential credit downgrades and further
weakening of the economy.
The Fund's yield curve positioning was also beneficial. Here, we maintained an
underweight relative to the Lehman Brothers Corporate Bond Index in longer dated
issues and an overweight to intermediate dated issues. This strategy helped
enhance returns as the spread between intermediate- and long-dated yields
widened and the curve steepened during the period.
The Fund has an allocation to mortgage securities, which are not represented in
the Lehman Brothers Corporate Bond Index. These holdings, particularly non-
agency mortgage securities, commercial mortgage-backed securities and asset-
backed securities, detracted from relative performance for the period. As a
result of defaults in the subprime market, spreads on all residential and
commercial mortgage-backed products moved wider and market liquidity for these
types of products severely diminished. Although the Fund's holdings of
non-agency MBS underperformed, we note that the majority of them are backed by
prime and near-prime borrowers with good credit scores and favorable
loan-to-value ratios. Asset-backed securities, especially those backed by home
equity lines of credit, were hurt as well.
There is no guarantee that any sectors mentioned will continue to perform as
discussed herein or that securities in such sectors will be held by the Fund in
the future.
3
<Table>
<Caption>
RATINGS ALLOCATION AS OF 2/29/08
AAA/Aaa 16.3%
AA/Aa 13.6
A/A 29.4
BBB/Baa 37.4
BB/Ba 2.2
B/B 0.4
Non-Rated 0.7
<Caption>
SUMMARY OF INVESTMENTS BY INDUSTRY CLASSIFICATION AS OF 2/29/08
Banking 15.4%
Electric 8.3
Collateralized Mortgage Obligation 8.1
Wireline Communications 7.4
Brokerage 5.8
Noncaptive-Diversified Finance 4.1
Noncaptive-Consumer Finance 3.8
Food/Beverage 3.1
Retail 3.1
Diversified Manufacturing 3.0
Property & Casualty Insurance 2.9
Life Insurance 2.6
Integrated Energy 2.6
Natural Gas Pipelines 1.9
Pharmaceuticals 1.9
Health Care 1.8
United States Treasury Obligations 1.8
Railroads 1.7
Media-Cable 1.6
Entertainment 1.1
Supermarkets 1.0
Media-Noncable 1.0
Construction Machinery 0.9
Technology 0.9
Environmental & Facilities Services 0.8
REITS 0.7
Pipelines 0.7
Automotive 0.7
Refining 0.6
Transportation Services 0.6
Other Utilities 0.6
Foreign Government Obligations 0.6
Oil Field Services 0.6
Restaurants 0.5
Independent Energy 0.5
Chemicals 0.5
Mortgage Backed Securities 0.3
Tobacco 0.2
</Table>
<Table>
(continued on next page)
</Table>
4
<Table>
<Caption>
SUMMARY OF INVESTMENTS BY INDUSTRY CLASSIFICATION AS OF 2/29/08
(continued from previous page)
Airlines 0.2%
Natural Gas Distributors 0.2
Home Construction 0.1
-----
Total Long-Term Investments 94.2
Total Short-Term Investments 4.9
-----
Total Investments 99.1
Foreign Currency 0.0*
Other Assets in Excess of Liabilities 0.9
-----
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. Ratings allocations are as a
percentage of long-term investments. Industry allocations 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. Ratings allocations based
upon ratings as issued by Standard and Poor's and Moody's, respectively.
5
FOR MORE INFORMATION ABOUT PORTFOLIO HOLDINGS
Each Van Kampen fund provides a complete schedule of portfolio holdings
in its semiannual and annual reports within 60 days of the end of the
fund's second and fourth fiscal quarters. The semiannual reports and the
annual reports are filed electronically with the Securities and Exchange
Commission (SEC) on Form N-CSRS and Form N-CSR, respectively. Van Kampen
also delivers the semiannual and annual reports to fund shareholders, and
makes these reports available on its public Web site, www.vankampen.com.
In addition to the semiannual and annual reports that Van Kampen delivers
to shareholders and makes available through the Van Kampen public Web
site, each fund files a complete schedule of portfolio holdings with the
SEC for the fund's first and third fiscal quarters on Form N-Q. Van
Kampen does not deliver the reports for the first and third fiscal
quarters to shareholders, nor are the reports posted to the Van Kampen
public Web site. You may, however, obtain the Form N-Q filings (as well
as the Form N-CSR and N-CSRS filings) by accessing the SEC's Web site,
http://www.sec.gov. You may also review and copy them at the SEC's Public
Reference Room in Washington, DC. Information on the operation of the
SEC's Public Reference Room may be obtained by calling the SEC at (800)
SEC-0330. You can also request copies of these materials, upon payment of
a duplicating fee, by electronic request at the SEC's 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.
6
HOUSEHOLDING NOTICE
To reduce Fund expenses, the Fund attempts to eliminate duplicate
mailings to the same address. The Fund delivers a single copy of certain
shareholder documents to investors who share an address, even if the
accounts are registered under different names. The Fund's prospectuses
and shareholder reports (including annual privacy notices) will be
delivered to you in this manner indefinitely unless you instruct us
otherwise. You can request multiple copies of these documents by either
calling (800) 341-2911 or writing to Van Kampen Investor Services at 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.
7
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments of Class A Shares
and contingent deferred sales charges on redemptions of Class B and Class C
Shares; and 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
cost 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 $1,041.69 $4.57
Hypothetical............................... 1,000.00 1,020.39 4.52
(5% annual return before expenses)
Class B
Actual..................................... 1,000.00 1,037.92 8.41
Hypothetical............................... 1,000.00 1,016.61 8.32
(5% annual return before expenses)
Class C
Actual..................................... 1,000.00 1,036.41 8.40
Hypothetical............................... 1,000.00 1,016.61 8.32
(5% annual return before expenses)
Class I
Actual..................................... 1,000.00 1,041.40 3.35
Hypothetical............................... 1,000.00 1,021.58 3.32
(5% annual return before expenses)
</Table>
* Expenses are equal to the Fund's annualized expense ratio of 0.90%, 1.66%,
1.66% and 0.66% for Class A, B, C and I Shares, respectively, multiplied by
the average account value over the period, multiplied by 182/366 (to reflect
the one-half year period).
Assumes all dividends and distributions were reinvested.
8
VAN KAMPEN CORPORATE BOND FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 29, 2008 (UNAUDITED)
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
CORPORATE BONDS 83.4%
AIRLINES 0.2%
$ 1,755 America West Airlines, Inc., Class G......... 7.100% 04/02/21 $ 1,720,322
------------
AUTOMOTIVE 0.7%
1,935 ArvinMeritor, Inc. .......................... 8.750 03/01/12 1,770,525
3,365 DaimlerChrysler NA Holding Corp. ............ 8.500 01/18/31 4,106,969
------------
5,877,494
------------
BANKING 15.4%
5,120 Bank of America Corp. ....................... 3.375 02/17/09 5,126,538
3,400 Bank of America Corp. ....................... 4.875 09/15/12 3,511,153
1,620 Bank of America Corp. ....................... 5.750 12/01/17 1,658,580
25,710 Bank of Scotland (United Kingdom) (a)........ 5.250 02/21/17 27,133,357
4,785 Bank One Corp. .............................. 6.000 08/01/08 4,829,879
1,210 Barclays Bank PLC (United Kingdom) (a)....... 6.050 12/04/17 1,257,430
3,000 Citigroup, Inc. ............................. 4.250 07/29/09 3,035,637
8,347 Citigroup, Inc. ............................. 5.250 02/27/12 8,594,071
3,690 Citigroup, Inc. ............................. 5.875 05/29/37 3,277,775
5,355 JPMorgan Chase & Co. ........................ 6.750 02/01/11 5,755,276
4,475 MBNA Corp. (b)............................... 3.525 05/05/08 4,479,045
1,580 National City Bank........................... 4.150 08/01/09 1,555,534
1,695 PNC Bank NA.................................. 6.000 12/07/17 1,728,317
6,702 PNC Funding Corp. ........................... 6.125 02/15/09 6,800,613
5,200 Popular North America, Inc. ................. 4.250 04/01/08 5,196,797
2,820 Popular North America, Inc. ................. 5.650 04/15/09 2,806,529
9,650 Sovereign Bancorp, Inc. (b).................. 5.113 03/23/10 9,240,222
9,580 Unicredito Luxembourg Finance SA (Luxembourg)
(a) (b)...................................... 3.767 10/24/08 9,568,993
1,250 US Bancorp................................... 4.500 07/29/10 1,300,392
7,805 Wachovia Capital Trust III (b)............... 5.800 08/29/49 6,150,434
3,100 Wachovia Corp. .............................. 3.625 02/17/09 3,099,817
4,797 Washington Mutual, Inc. ..................... 8.250 04/01/10 4,762,538
4,000 Wells Fargo & Co. ........................... 5.000 11/15/14 4,085,252
3,796 Wells Fargo Bank NA.......................... 4.750 02/09/15 3,759,585
------------
128,713,764
------------
BROKERAGE 5.8%
3,080 Bear Stearns Co., Inc. ...................... 5.550 01/22/17 2,680,755
3,530 Bear Stearns Co., Inc. ...................... 6.400 10/02/17 3,258,253
2,535 Bear Stearns Co., Inc. ...................... 7.250 02/01/18 2,463,665
7,665 Credit Suisse NY (Switzerland)............... 6.000 02/15/18 7,836,129
8,460 Goldman Sachs Group, Inc. ................... 6.750 10/01/37 7,922,655
3,555 Lehman Brothers Holdings, Inc. .............. 5.750 01/03/17 3,346,947
4,820 Lehman Brothers Holdings, Inc. .............. 6.500 07/19/17 4,772,846
8,815 Lehman Brothers Holdings, Inc. .............. 6.875 07/17/37 8,405,288
</Table>
See Notes to Financial Statements 9
VAN KAMPEN CORPORATE BOND FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
BROKERAGE (CONTINUED)
$ 1,350 Merrill Lynch & Co., Inc. ................... 5.450% 02/05/13 $ 1,361,154
6,925 Merrill Lynch & Co., Inc. ................... 5.700 05/02/17 6,630,895
------------
48,678,587
------------
CHEMICALS 0.5%
1,170 E.I. Du Pont de Nemours & Co. ............... 5.000 01/15/13 1,229,780
2,890 ICI Wilmington, Inc. ........................ 4.375 12/01/08 2,907,262
------------
4,137,042
------------
CONSTRUCTION MACHINERY 0.9%
7,615 John Deere Capital Corp. (b)................. 4.307 04/15/08 7,622,288
------------
DIVERSIFIED MANUFACTURING 3.0%
3,935 Brascan Corp. (Canada)....................... 7.125 06/15/12 4,074,342
1,220 Brascan Corp. (Canada)....................... 8.125 12/15/08 1,253,932
3,775 Brookfield Asset Management, Inc. (Canada)... 5.800 04/25/17 3,720,848
4,625 Cooper Industries, Inc. ..................... 5.250 11/15/12 4,836,686
6,665 General Electric Co. ........................ 5.250 12/06/17 6,701,971
880 Honeywell International, Inc. ............... 5.300 03/01/18 905,079
1,450 Hutchison Whampoa International, Ltd. (Cayman
Islands) (a)................................. 5.450 11/24/10 1,497,303
1,880 Hutchison Whampoa International, Ltd. (Cayman
Islands) (a)................................. 6.500 02/13/13 1,979,578
------------
24,969,739
------------
ELECTRIC 8.3%
6,410 Arizona Public Service Co. .................. 5.800 06/30/14 6,458,216
1,795 Baltimore Gas & Electric Co. ................ 6.625 03/15/08 1,796,160
1,518 Carolina Power & Light Co. .................. 5.150 04/01/15 1,562,781
530 Detroit Edison Co. .......................... 5.200 10/15/12 556,129
2,685 Detroit Edison Co. .......................... 6.125 10/01/10 2,872,837
2,690 Duquesne Light Co., Ser O.................... 6.700 04/15/12 2,960,856
2,080 Enel Finance International SA
(Luxemberg)(a)............................... 5.700 01/15/13 2,190,827
4,395 Entergy Gulf States, Inc. (b)................ 3.490 12/01/09 4,297,440
2,860 Entergy Gulf States, Inc. ................... 3.600 06/01/08 2,849,795
1,965 Entergy Gulf States, Inc. (a) (b)............ 5.896 12/08/08 1,970,166
4,015 Exelon Corp. ................................ 6.750 05/01/11 4,239,354
830 Florida Power Corp. ......................... 5.800 09/15/17 891,217
560 Indianapolis Power & Light Co. (a)........... 6.300 07/01/13 610,871
4,285 MidAmerican Energy Holdings Co. ............. 3.500 05/15/08 4,284,974
5,550 NiSource Finance Corp. (b)................... 3.662 11/23/09 5,358,575
2,575 NiSource Finance Corp. ...................... 7.875 11/15/10 2,811,143
4,085 Ohio Edison Co. ............................. 6.400 07/15/16 4,230,169
5,020 Ohio Power Co., Ser K........................ 6.000 06/01/16 5,215,996
2,495 Pacific Gas & Electric Co. .................. 5.625 11/30/17 2,593,350
1,075 Pacificorp................................... 6.250 10/15/37 1,120,181
2,045 Public Service Electric & Gas Co., Ser B..... 5.125 09/01/12 2,141,491
</Table>
10 See Notes to Financial Statements
VAN KAMPEN CORPORATE BOND FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
ELECTRIC (CONTINUED)
$ 4,577 Texas-New Mexico Power Co. .................. 6.125% 06/01/08 $ 4,580,053
2,185 Union Electric Co. .......................... 6.400 06/15/17 2,325,367
1,320 Virginia Electric and Power Co., Ser B....... 5.950 09/15/17 1,405,355
------------
69,323,303
------------
ENTERTAINMENT 1.1%
5,745 Time Warner, Inc. (b)........................ 3.300 11/13/09 5,557,615
4,190 Time Warner, Inc. ........................... 5.875 11/15/16 4,084,006
------------
9,641,621
------------
ENVIRONMENTAL & FACILITIES SERVICES 0.8%
4,518 Waste Management, Inc. ...................... 6.875 05/15/09 4,685,717
1,745 Waste Management, Inc. ...................... 7.375 08/01/10 1,879,939
------------
6,565,656
------------
FOOD/BEVERAGE 3.1%
1,050 Anheuser-Busch Cos, Inc. .................... 5.500 01/15/18 1,089,039
2,235 ConAgra Foods, Inc. ......................... 7.000 10/01/28 2,307,852
2,040 ConAgra Foods, Inc. ......................... 8.250 09/15/30 2,356,349
5,030 FBG Finance, Ltd. (Australia) (a)............ 5.125 06/15/15 5,020,534
1,645 Kellogg Co. ................................. 5.125 12/03/12 1,728,869
3,145 Kraft Foods, Inc. ........................... 5.625 11/01/11 3,279,021
235 Kraft Foods, Inc. ........................... 6.000 02/11/13 247,722
7,805 Miller Brewing Co. (a)....................... 4.250 08/15/08 7,833,972
690 Pilgrim's Pride Corp. ....................... 7.625 05/01/15 662,400
1,790 Smithfield Foods, Inc., Ser B................ 8.000 10/15/09 1,821,325
------------
26,347,083
------------
HEALTH CARE 1.8%
4,420 Baxter Finance Co. (Netherlands)............. 4.750 10/15/10 4,610,926
6,000 UnitedHealth Group, Inc. (b)................. 3.170 03/02/09 5,925,558
3,100 UnitedHealth Group, Inc. .................... 6.000 02/15/18 3,149,634
1,510 Wellpoint, Inc. ............................. 4.250 12/15/09 1,525,704
------------
15,211,822
------------
HOME CONSTRUCTION 0.1%
660 Pulte Homes, Inc. ........................... 6.375 05/15/33 514,800
------------
INDEPENDENT ENERGY 0.5%
3,870 Devon Financing Corp., ULC................... 6.875 09/30/11 4,261,489
------------
INTEGRATED ENERGY 2.6%
3,135 Amerada Hess Corp. .......................... 6.650 08/15/11 3,421,382
2,115 Anadarko Finance Co. (Canada)................ 6.750 05/01/11 2,291,844
1,990 Chesapeake Energy Corp. ..................... 7.625 07/15/13 2,029,800
1,880 Consumers Energy Co. , Ser F................. 4.000 05/15/10 1,898,979
2,035 Consumers Energy Co., Ser H.................. 4.800 02/17/09 2,057,265
2,735 EnCana Corp. (Canada)........................ 6.500 02/01/38 2,802,056
3,510 Marathon Oil Corp. .......................... 6.000 10/01/17 3,624,573
</Table>
See Notes to Financial Statements 11
VAN KAMPEN CORPORATE BOND FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
INTEGRATED ENERGY (CONTINUED)
$ 3,470 Petro-Canada (Canada)........................ 5.350% 07/15/33 $ 2,925,658
615 Petro-Canada (Canada)........................ 5.950 05/15/35 561,406
------------
21,612,963
------------
LIFE INSURANCE 2.6%
2,280 AXA Financial, Inc. ......................... 6.500 04/01/08 2,285,743
190 MetLife, Inc. ............................... 6.125 12/01/11 204,060
2,730 Monumental Global Funding II (a)............. 3.850 03/03/08 2,730,000
920 Nationwide Financial Services, Inc. ......... 6.250 11/15/11 984,462
3,495 Platinum Underwriters Finance, Inc., Ser B... 7.500 06/01/17 3,573,742
1,420 Prudential Financial, Inc. .................. 6.625 12/01/37 1,416,155
4,510 Prudential Funding, LLC (a).................. 6.600 05/15/08 4,531,432
6,430 Xlliac Global Funding (a).................... 4.800 08/10/10 6,475,299
------------
22,200,893
------------
MEDIA-CABLE 1.6%
2,625 Comcast Cable Communications, Inc. .......... 6.750 01/30/11 2,777,526
2,725 Comcast Cable Communications, Inc. .......... 7.125 06/15/13 2,942,349
4,425 Comcast Corp. ............................... 6.500 01/15/15 4,622,045
2,495 Echostar DBS Corp. .......................... 6.375 10/01/11 2,463,812
515 Echostar DBS Corp. .......................... 6.625 10/01/14 496,975
------------
13,302,707
------------
MEDIA-NONCABLE 1.0%
845 Interpublic Group of Cos., Inc. ............. 6.250 11/15/14 680,225
2,450 News America, Inc. (a)....................... 6.650 11/15/37 2,475,816
5,170 Viacom, Inc. ................................ 6.875 04/30/36 4,958,221
------------
8,114,262
------------
NATURAL GAS DISTRIBUTORS 0.2%
1,470 KeySpan Corp. ............................... 4.900 05/16/08 1,473,091
------------
NATURAL GAS PIPELINES 1.9%
1,355 CenterPoint Energy Resources Corp. .......... 6.250 02/01/37 1,288,020
970 CenterPoint Energy Resources Corp. .......... 7.875 04/01/13 1,099,700
3,260 Colorado Interstate Gas Co. ................. 6.800 11/15/15 3,449,122
2,115 Consolidated Natural Gas Co., Ser C.......... 6.250 11/01/11 2,259,116
5,380 Kinder Morgan Finance Corp. (Canada)......... 5.700 01/05/16 5,030,300
2,895 Texas Eastern Transmission Corp. ............ 7.000 07/15/32 3,046,733
------------
16,172,991
------------
NONCAPTIVE-CONSUMER FINANCE 3.8%
1,920 American General Finance Corp. .............. 4.625 05/15/09 1,920,405
5,120 American General Finance Corp. .............. 4.625 09/01/10 5,148,672
4,760 Countrywide Home Loans, Inc. ................ 3.250 05/21/08 4,631,528
800 Household Finance Corp. ..................... 4.125 12/15/08 802,490
1,175 Household Finance Corp. ..................... 4.125 11/16/09 1,181,567
2,150 Household Finance Corp. ..................... 6.375 10/15/11 2,260,374
6,125 Household Finance Corp. ..................... 6.750 05/15/11 6,486,246
1,230 SLM Corp. (b)................................ 3.491 07/26/10 1,061,831
</Table>
12 See Notes to Financial Statements
VAN KAMPEN CORPORATE BOND FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
NONCAPTIVE-CONSUMER FINANCE (CONTINUED)
$ 5,010 SLM Corp. ................................... 4.000% 01/15/10 $ 4,590,047
1,500 Washington Mutual Preferred Funding (a)...... 6.665 12/31/49 976,443
3,500 Washington Mutual Preferred Funding (a)...... 9.750 10/29/49 3,014,473
------------
32,074,076
------------
NONCAPTIVE-DIVERSIFIED FINANCE 4.1%
2,035 Capital One Financial Corp. ................. 6.750 09/15/17 2,049,713
4,545 Capmark Financial Group, Inc. (a)............ 5.875 05/10/12 3,080,987
1,840 Capmark Financial Group, Inc. (a)............ 6.300 05/10/17 1,205,914
4,195 CIT Group, Inc. ............................. 5.650 02/13/17 3,512,935
2,235 General Electric Capital Corp., Ser A........ 4.750 09/15/14 2,271,466
12,725 General Electric Capital Corp., Ser A........ 5.875 02/15/12 13,588,939
8,095 Nationwide Building Society (United Kingdom)
(a).......................................... 4.250 02/01/10 8,290,397
------------
34,000,351
------------
OIL FIELD SERVICES 0.6%
2,170 Kinder Morgan Energy Partners, LP............ 5.850 09/15/12 2,269,323
2,450 Weatherford International, Inc. ............. 6.350 06/15/17 2,594,932
------------
4,864,255
------------
OTHER UTILITIES 0.6%
5,035 Plains All American Pipeline................. 6.700 05/15/36 5,005,918
------------
PHARMACEUTICALS 1.9%
5,810 Biogen Idec, Inc. ........................... 6.875 03/01/18 5,904,239
6,650 Hospira, Inc. (b)............................ 5.310 03/30/10 6,507,325
2,550 Wyeth........................................ 5.450 04/01/17 2,635,588
580 Wyeth........................................ 5.500 02/15/16 597,415
------------
15,644,567
------------
PIPELINES 0.7%
1,490 DCP Midstream, LLC (a)....................... 6.750 09/15/37 1,483,153
2,520 Trans-Canada Pipelines (Canada).............. 6.200 10/15/37 2,448,024
1,910 Transcontinental Gas Pipe Line Corp. ........ 8.875 07/15/12 2,182,175
------------
6,113,352
------------
PROPERTY & CASUALTY INSURANCE 2.9%
5,800 AIG SunAmerica Global Financing VI (a)....... 6.300 05/10/11 6,154,513
5,675 Catlin Insurance Co., Ltd. (Bermuda) (a)..... 7.249 12/01/49 5,074,052
4,710 Farmers Exchange Capital (a)................. 7.050 07/15/28 4,411,565
2,721 Farmers Insurance Exchange Surplus (a)....... 8.625 05/01/24 2,941,469
4,610 Mantis Reef, Ltd. (Cayman Islands) (a)....... 4.692 11/14/08 4,648,710
3,315 Two-Rock Pass Through Trust (Bermuda) (a)
(b).......................................... 4.036 02/11/49 1,326,000
------------
24,556,309
------------
</Table>
See Notes to Financial Statements 13
VAN KAMPEN CORPORATE BOND FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
RAILROADS 1.7%
$ 6,205 Burlington Northern Santa Fe Corp. .......... 6.125% 03/15/09 $ 6,332,537
3,640 CSX Corp. ................................... 6.750 03/15/11 3,894,465
3,720 Union Pacific Corp. ......................... 5.450 01/31/13 3,872,550
------------
14,099,552
------------
REFINING 0.6%
2,710 Enterprise Products Operating, LP............ 5.600 10/15/14 2,761,265
2,460 Valero Energy Corp. ......................... 3.500 04/01/09 2,464,005
------------
5,225,270
------------
REITS 0.7%
7,195 iStar Financial, Inc. (b).................... 5.496 03/09/10 6,281,739
------------
RESTAURANTS 0.5%
3,935 Yum! Brands, Inc. ........................... 8.875 04/15/11 4,428,752
------------
RETAIL 3.1%
2,265 CVS Caremark Corp. .......................... 5.750 08/15/11 2,390,945
340 CVS Caremark Corp. .......................... 5.750 06/01/17 351,408
4,816 CVS Lease Pass Through Trust (a)............. 6.036 12/10/28 4,658,848
1,500 Federated Department Stores, Inc. ........... 6.300 04/01/09 1,509,409
2,000 Federated Department Stores, Inc. ........... 6.625 09/01/08 2,014,494
7,475 Home Depot, Inc. (b)......................... 5.116 12/16/09 7,196,751
4,325 Home Depot, Inc. ............................ 5.400 03/01/16 4,082,234
2,970 May Department Stores Co. ................... 5.950 11/01/08 2,984,853
760 Target Corp. ................................ 6.500 10/15/37 748,631
------------
25,937,573
------------
SUPERMARKETS 1.0%
3,127 Delhaize America, Inc. ...................... 9.000 04/15/31 3,807,648
2,595 Fred Meyer, Inc. ............................ 7.450 03/01/08 2,595,000
1,800 Kroger Co., Ser B............................ 7.250 06/01/09 1,864,866
------------
8,267,514
------------
TECHNOLOGY 0.9%
2,330 Fiserv, Inc. ................................ 6.800 11/20/17 2,469,781
2,995 LG Electronics, Inc. (South Korea) (a)....... 5.000 06/17/10 2,962,016
2,085 Xerox Corp. ................................. 5.500 05/15/12 2,139,137
------------
7,570,934
------------
TOBACCO 0.2%
1,780 Reynolds American, Inc. ..................... 6.500 07/15/10 1,860,675
------------
TRANSPORTATION SERVICES 0.6%
5,000 FedEx Corp. ................................. 5.500 08/15/09 5,138,160
------------
WIRELINE COMMUNICATIONS 7.4%
6,640 AT&T Corp. .................................. 8.000 11/15/31 7,938,784
5,355 France Telecom SA (France)................... 8.500 03/01/31 6,840,841
1,000 GTE Corp. ................................... 7.510 04/01/09 1,039,480
</Table>
14 See Notes to Financial Statements
VAN KAMPEN CORPORATE BOND FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
WIRELINE COMMUNICATIONS (CONTINUED)
$ 6,000 SBC Communications, Inc. .................... 4.125% 09/15/09 $ 6,080,628
3,155 SBC Communications, Inc. .................... 6.150 09/15/34 3,091,906
6,650 Sprint Capital Corp. ........................ 6.125 11/15/08 6,484,821
2,080 Sprint Capital Corp. ........................ 8.750 03/15/32 1,625,828
10,130 Sprint Nextel Corp. ......................... 6.000 12/01/16 7,406,418
4,805 Telecom Italia Capital (Luxembourg).......... 4.000 01/15/10 4,782,162
2,820 Telecom Italia Capital SA (Luxembourg)....... 4.950 09/30/14 2,685,294
1,900 Telecom Italia Capital Ser A (Luxemberg)..... 4.000 11/15/08 1,899,059
5,715 Telefonica Europe BV (Netherlands)........... 8.250 09/15/30 6,861,555
4,750 Verizon Communications, Inc. ................ 5.500 02/15/18 4,776,933
265 Verizon New England, Inc. ................... 6.500 09/15/11 281,956
------------
61,795,665
------------
TOTAL CORPORATE BONDS 83.4%................................... 699,326,579
------------
COLLATERALIZED MORTGAGE OBLIGATIONS 8.1%
2,460 American Home Mortgage Assets (b)............ 3.434 06/25/47 1,761,784
1,882 American Home Mortgage Assets, Class M (b)... 3.545 11/25/46 1,344,641
4,600 Banc of America Commercial Mortgage, Inc.
(b).......................................... 5.658 06/10/49 4,405,953
3,225 Banc of America Commercial Mortgage, Inc.
(b).......................................... 5.688 04/10/49 3,110,520
3,350 Bear Stearns Commercial Mortgage Securities
(b).......................................... 5.712 06/11/40 3,228,840
4,600 Citigroup Commercial Mortgage Trust (b)...... 5.700 12/10/49 4,428,017
6,300 Commercial Mortgage Pass-Through Certificates
(b).......................................... 5.816 12/10/49 6,108,128
1,300 Countrywide Alternative Loan Trust (b)....... 3.654 10/25/46 520,000
2,498 Countrywide Alternative Loan Trust, Class B
(b).......................................... 4.113 11/20/35 1,174,124
2,000 Greenwich Capital Commercial Funding
Corp. ....................................... 5.444 03/10/39 1,888,819
6,300 GS Mortgage Securities Corp., Ser II (b)..... 5.799 08/10/45 6,104,216
935 Harborview Mortgage Loan Trust, Ser B (b).... 3.660 08/21/36 467,500
886 Harborview Mortgage Loan Trust, Ser B (b).... 3.818 01/19/36 639,641
2,175 JPMorgan Chase Commercial Mortgage Securities
Corp. ....................................... 5.440 06/12/47 2,050,338
3,375 JPMorgan Chase Commercial Mortgage Securities
Corp. (b).................................... 5.746 02/12/49 3,251,776
4,925 JPMorgan Chase Commercial Mortgage Securities
Corp. (b).................................... 5.818 06/15/49 4,774,254
3,325 LB Commercial Conduit Mortgage Trust......... 5.935 07/15/44 3,254,059
2,175 LB-UBS Commercial Mortgage Trust............. 5.430 02/15/40 2,048,594
1,195 Luminent Mortgage Trust (b).................. 3.494 07/25/36 816,754
2,225 Mastr Adjustable Rate Mortgages Trust (b).... 3.984 05/25/47 785,008
5,200 Wachovia Bank Commercial Mortgage Trust...... 5.342 12/15/43 4,863,839
</Table>
See Notes to Financial Statements 15
VAN KAMPEN CORPORATE BOND FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED)
$ 6,500 Wachovia Bank Commercial Mortgage Trust
(b).......................................... 5.740% 06/15/49 $ 6,247,587
5,000 Wachovia Bank Commercial Mortgage Trust
(b).......................................... 5.902 02/15/51 4,889,852
------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS 8.1%................ 68,164,244
------------
FOREIGN GOVERNMENT OBLIGATIONS 0.6%
ARS 1,280 Argentina International Government Bond
(Argentina).................................. 8.280 12/31/33 1,130,587
MXN 36,345 Mexican Fixed Rate Bond (Mexico)............. 9.500 12/18/14 3,764,452
------------
TOTAL FOREIGN GOVERNMENT OBLIGATIONS........................... 4,895,039
------------
UNITED STATES TREASURY OBLIGATIONS 1.8%
15,000 United States Treasury Bond.................. 4.500 02/15/36 15,195,705
------------
MORTGAGE BACKED SECURITIES 0.3%
1,503 World Financial Properties Ser 1996 (a)...... 6.910 09/01/13 1,479,024
811 World Financial Properties Ser 1996 (a)...... 6.950 09/01/13 798,888
------------
TOTAL MORTGAGE BACKED SECURITIES............................... 2,277,912
------------
TOTAL LONG-TERM INVESTMENTS 94.2%
(Cost $797,350,524)....................................................... $789,859,479
------------
</Table>
16 See Notes to Financial Statements
VAN KAMPEN CORPORATE BOND FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
<Table>
<Caption>
DESCRIPTION VALUE
- ----------------------------------------------------------------------------
SHORT-TERM INVESTMENTS 4.9%
REPURCHASE AGREEMENTS 4.7%
Banc of America Securities ($15,708,938 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 $15,713,074).................................. $ 15,708,938
Citigroup Global Markets, Inc. ($13,963,500 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 $13,967,049)....................... 13,963,500
State Street Bank & Trust Co. ($9,548,562 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 $9,550,679)................................... 9,548,562
------------
TOTAL REPURCHASE AGREEMENTS................................. 39,221,000
------------
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS 0.2%
United States Treasury Bill ($2,205,000 par, yielding
3.161%, 04/10/08 maturity) (c)............................ 2,197,283
------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $41,418,283)........................................ 41,418,283
------------
TOTAL INVESTMENTS 99.1%
(Cost $838,768,807)....................................... 831,277,762
FOREIGN CURRENCY 0.0%
(Cost $16,404)............................................ 16,103
OTHER ASSETS IN EXCESS OF LIABILITIES 0.9%................. 7,152,316
------------
NET ASSETS 100.0%.......................................... $838,446,181
============
</Table>
Percentages are calculated as a percentage of net assets.
(a) 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.
(b) Floating Rate Coupon
(c) All or a portion of this security has been physically segregated in
connection with open futures contracts.
Currency Abbreviations:
ARS--Argentine Peso
MXN--Mexican peso
See Notes to Financial Statements 17
VAN KAMPEN CORPORATE BOND FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
FUTURES CONTRACTS OUTSTANDING AS OF FEBRUARY 29, 2008:
<Table>
<Caption>
UNREALIZED
APPRECIATION/
CONTRACTS DEPRECIATION
LONG CONTRACTS:
U.S. Treasury Notes 5-Year Futures, June 2008 (Current
Notional Value of $114,250 per contract).................. 815 $ 1,250,659
U.S. Treasury Notes 2-Year Futures, June 2008 (Current
Notional Value of $214,922 per contract).................. 393 570,830
SHORT CONTRACTS:
U.S. Treasury Notes 10-Year Futures, March 2008 (Current
Notional Value of $118,688 per contract).................. 252 (531,869)
U.S. Treasury Bonds Futures, March 2008 (Current Notional
Value of $119,688 per contract)........................... 44 (246,224)
U.S. Treasury Notes 10-Year Futures, June 2008 (Current
Notional Value of $117,281 per contract).................. 1,388 (3,090,263)
U.S. Treasury Bonds Futures, June 2008 (Current Notional
Value of $118,625 per contract)........................... 243 (648,625)
----- -----------
3,135 $(2,695,492)
===== ===========
</Table>
SWAP AGREEMENTS OUTSTANDING AS OF FEBRUARY 29, 2008:
CREDIT DEFAULT SWAPS
<Table>
<Caption>
PAY/
RECEIVE NOTIONAL
BUY/SELL FIXED EXPIRATION AMOUNT UPFRONT
COUNTERPARTY REFERENCE ENTITY PROTECTION RATE DATE (000) PAYMENTS VALUE
Bank of America,
N.A. ............... CenturyTel, Inc. Buy 0.88% 09/20/17 $ 2,050 $ 0 $ 153,105
Bank of America,
N.A. ............... Nordstrom, Inc. Buy 1.03 03/20/18 3,300 0 81,445
Bank of America,
N.A. ............... Sealed Air Corp. Buy 1.08 03/20/18 1,500 0 29,984
Bank of America,
N.A. ............... Sealed Air Corp. Buy 1.12 03/20/18 2,170 0 36,614
Bank of America,
N.A. ............... Textron Financial
Corp. Buy 0.80 03/20/18 2,515 0 60,022
Bank of America,
N.A. ............... The Gap, Inc. Buy 1.19 03/20/12 4,750 0 (29,478)
Bank of America,
N.A. ............... Toll Brothers,
Inc. Buy 2.90 03/20/13 4,050 0 21,665
Bank of America,
N.A. ............... Yum! Brands, Inc. Buy 1.18 03/20/13 425 0 (3,486)
Bank of America,
N.A. ............... Yum! Brands, Inc. Buy 1.25 03/20/13 3,510 0 (40,429)
</Table>
18 See Notes to Financial Statements
VAN KAMPEN CORPORATE BOND FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
<Table>
<Caption>
PAY/
RECEIVE NOTIONAL
BUY/SELL FIXED EXPIRATION AMOUNT UPFRONT
COUNTERPARTY REFERENCE ENTITY PROTECTION RATE DATE (000) PAYMENTS VALUE
Barclays Bank,
PLC ................ Federal Home Loan
Mortgage Corp. Sell 0.60% 12/20/17 $ 2,020 $ 0 $ 8,368
Citibank, N.A., New
York ............... Covidien, Ltd. Buy 0.43 03/20/12 467 0 (17)
Citibank, N.A., New
York ............... Eaton Corp. Buy 0.62 03/20/13 3,785 0 24,792
Citibank, N.A., New
York ............... Eaton Corp. Buy 0.72 03/20/13 3,070 0 5,942
Citibank, N.A., New
York ............... Eaton Corp. Buy 0.82 03/20/18 2,110 0 1,549
Citibank, N.A., New
York ............... Pitney Bowes,
Inc. Buy 0.48 03/20/13 5,105 0 80,885
Citibank, N.A., New
York ............... Tyco
International,
Ltd. Buy 0.43 03/20/12 933 0 12,164
Credit Suisse
International ...... Arrow
Electronics, Inc. Buy 1.00 03/20/15 4,960 0 82,044
Credit Suisse
International ...... Nordstrom, Inc. Buy 1.04 03/20/13 7,770 0 72,761
Credit Suisse
International ...... Nordstrom, Inc. Buy 1.05 03/20/13 4,035 0 35,923
Goldman Sachs Capital
Markets, L.P. ...... Avalon Bay
Communities, Inc. Buy 3.05 03/20/13 7,910 0 0
Goldman Sachs Capital
Markets, L.P. ...... CDX.NA.IG.HVOL.9 Sell 0.80 12/20/17 8,330 (279,065) (362,743)
Goldman Sachs Capital
Markets, L.P. ...... CDX.NA.IG.HVOL.9 Sell 1.40 12/20/12 42,355 (2,447,514) (3,253,560)
Goldman Sachs Capital
Markets, L.P. ...... Coca-Cola
Enterprises, Inc. Buy 0.59 03/20/13 8,120 0 (9,775)
Goldman Sachs Capital
Markets, L.P. ...... Covidien, Ltd. Buy 0.80 03/20/11 700 0 (10,212)
Goldman Sachs Capital
Markets, L.P. ...... Dell, Inc. Buy 0.22 03/20/12 4,000 0 70,092
Goldman Sachs Capital
Markets, L.P. ...... Dow Jones CDX NA
IG 9 Buy 0.60 12/20/12 16,610 (341,181) (734,736)
</Table>
See Notes to Financial Statements 19
VAN KAMPEN CORPORATE BOND FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
<Table>
<Caption>
PAY/
RECEIVE NOTIONAL
BUY/SELL FIXED EXPIRATION AMOUNT UPFRONT
COUNTERPARTY REFERENCE ENTITY PROTECTION RATE DATE (000) PAYMENTS VALUE
Goldman Sachs Capital
Markets, L.P. ...... Dow Jones CDX NA
IG HVOL Buy 0.75% 12/20/11 $ 15,800 $ 11,774 $ 1,193,071
Goldman Sachs Capital
Markets, L.P. ...... Dupont Ei Nemour Buy 0.43 03/20/13 1,275 0 8,415
Goldman Sachs Capital
Markets, L.P. ...... Eli Lilly & Co. Buy 0.33 03/20/13 1,580 0 (261)
Goldman Sachs Capital
Markets, L.P. ...... Goodrich Corp. Buy 0.47 03/20/18 2,250 0 53,034
Goldman Sachs Capital
Markets, L.P. ...... Motorola, Inc. Buy 0.15 12/20/11 2,550 0 249,023
Goldman Sachs Capital
Markets, L.P. ...... Motorola, Inc. Buy 0.16 12/20/11 5,300 0 516,245
Goldman Sachs Capital
Markets, L.P. ...... Prologis Buy 3.33 03/20/13 3,460 0 0
Goldman Sachs Capital
Markets, L.P. ...... Sealed Air Corp. Buy 1.08 03/20/18 2,790 0 55,186
Goldman Sachs Capital
Markets, L.P. ...... Sealed Air Corp. Buy 1.24 03/20/18 1,345 0 9,702
Goldman Sachs Capital
Markets, L.P. ...... Textron Financial
Corp. Buy 1.05 03/20/13 4,335 0 (1,093)
Goldman Sachs Capital
Markets, L.P. ...... The Chubb Corp. Buy 0.10 03/20/12 7,900 0 294,601
Goldman Sachs Capital
Markets, L.P. ...... The Hartford
Financial
Services Group,
Inc. Buy 0.12 12/20/11 7,920 0 516,013
Goldman Sachs Capital
Markets, L.P. ...... Trane, Inc. Buy 0.50 03/20/13 5,880 0 (17,908)
Goldman Sachs Capital
Markets, L.P. ...... Trane, Inc. Buy 0.60 03/20/18 530 0 (3,114)
</Table>
20 See Notes to Financial Statements
VAN KAMPEN CORPORATE BOND FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
<Table>
<Caption>
PAY/
RECEIVE NOTIONAL
BUY/SELL FIXED EXPIRATION AMOUNT UPFRONT
COUNTERPARTY REFERENCE ENTITY PROTECTION RATE DATE (000) PAYMENTS VALUE
Goldman Sachs Capital
Markets, L.P. ...... Tyco
International,
Inc. Buy 0.80% 03/20/11 $ 1,400 $ 0 $ (16,704)
JPMorgan Chase Bank,
N.A. ............... Covidien, Ltd. Buy 0.65 03/20/11 1,167 0 (11,521)
JPMorgan Chase Bank,
N.A. ............... Eaton Corp. Buy 0.60 03/20/13 1,360 0 10,202
JPMorgan Chase Bank,
N.A. ............... Nordstrom, Inc. Buy 1.07 03/20/18 2,470 0 52,447
JPMorgan Chase Bank,
N.A. ............... Nordstrom, Inc. Buy 1.15 03/20/18 2,470 0 37,367
JPMorgan Chase Bank,
N.A. ............... SLM Corp. Sell 4.95 03/20/13 2,265 0 (3,050)
JPMorgan Chase Bank,
N.A. ............... The Pepsi
Bottling Group,
Inc. Buy 0.63 03/20/13 2,780 0 (14,266)
JPMorgan Chase Bank,
N.A. ............... Tyco
International,
Ltd. Buy 0.65 03/20/11 2,333 0 (16,875)
JPMorgan Chase Bank,
N.A. ............... Union Pacific
Corp. Buy 0.19 12/20/11 3,950 0 80,394
Lehman Brothers
Special Financing,
Inc. ............... Arrow
Electronics, Inc. Buy 1.04 03/20/18 680 0 16,883
Lehman Brothers
Special Financing,
Inc. ............... Goodrich Corp. Buy 0.45 03/20/18 2,625 0 65,910
Lehman Brothers
Special Financing,
Inc. ............... Goodrich Corp. Buy 0.46 03/20/18 1,880 0 (2,401)
Merril Lynch
International....... SLM Corp. Sell 5.00 03/20/13 2,265 0 1,346
UBS Securities, AG... Eli Lilly & Co. Buy 0.30 03/20/13 6,575 0 7,826
UBS Securities, AG... Martin Marietta
Materials, Inc. Buy 1.73 03/20/18 3,775 0 (10,385)
UBS Securities, AG... Martin Marietta
Materials, Inc. Buy 1.78 03/20/13 3,770 0 (5,477)
UBS Securities, AG... Textron Financial
Corp. Buy 1.00 03/20/13 2,860 0 7,042
</Table>
See Notes to Financial Statements 21
VAN KAMPEN CORPORATE BOND FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
<Table>
<Caption>
PAY/
RECEIVE NOTIONAL
BUY/SELL FIXED EXPIRATION AMOUNT UPFRONT
COUNTERPARTY REFERENCE ENTITY PROTECTION RATE DATE (000) PAYMENTS VALUE
UBS Securities, AG... Textron Financial
Corp. Buy 1.01% 03/20/13 $ 1,680 $ 0 $ 4,044
UBS Securities, AG... Textron Financial
Corp. Buy 1.06 03/20/13 4,310 0 (36,719)
UBS Securities, AG... Trane, Inc. Buy 0.60 03/20/18 4,675 0 (27,464)
----------- -----------
TOTAL CREDIT DEFAULT SWAPS............................................................. $(3,055,986) $ (655,568)
----------- ===========
</Table>
INTEREST RATE SWAPS
<Table>
<Caption>
PAY/
RECEIVE NOTIONAL UNREALIZED
FLOATING FIXED EXPIRATION AMOUNT APPRECIATION/
COUNTERPARTY FLOATING RATE INDEX RATE RATE DATE (000) DEPRECIATION
Bank of America, N.A. ......... USD-LIBOR BBA Receive 5.550% 02/22/18 $54,910 $ 525,489
Bank of America, N.A. ......... USD-LIBOR BBA Pay 5.958 02/22/23 70,075 417,647
Citibank, N.A., New York....... USD-LIBOR BBA Pay 5.275 10/25/37 35,000 2,795,119
Citibank, N.A., New York....... USD-LIBOR BBA Pay 5.414 05/25/17 157,275 17,763,807
JPMorgan Chase Bank, N.A. ..... USD-LIBOR BBA Pay 5.448 05/29/17 25,325 2,925,596
JPMorgan Chase Bank, N.A. ..... USD-LIBOR BBA Pay 5.454 06/04/17 39,450 4,052,598
-------------
TOTAL INTEREST RATE SWAP....................................................................... 28,480,256
-------------
TOTAL SWAP AGREEMENTS.......................................................................... $27,824,688
=============
</Table>
22 See Notes to Financial Statements
VAN KAMPEN CORPORATE BOND FUND
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
February 29, 2008 (Unaudited)
<Table>
ASSETS:
Total Investments (Cost $838,768,807)....................... $831,277,762
Foreign Currency (Cost $16,404)............................. 16,103
Cash........................................................ 376
Receivables:
Investments Sold.......................................... 11,370,000
Interest.................................................. 10,240,507
Fund Shares Sold.......................................... 1,107,607
Swap Contracts.............................................. 32,436,362
Other....................................................... 122,323
------------
Total Assets............................................ 886,571,040
------------
LIABILITIES:
Payables:
Swap Collateral........................................... 21,290,000
Investments Purchased..................................... 17,132,590
Variation Margin on Futures............................... 1,812,948
Fund Shares Repurchased................................... 1,756,130
Distributor and Affiliates................................ 482,320
Income Distributions...................................... 275,597
Investment Advisory Fee................................... 256,848
Swap Contracts.............................................. 4,611,674
Trustees' Deferred Compensation and Retirement Plans........ 212,955
Accrued Expenses............................................ 293,797
------------
Total Liabilities....................................... 48,124,859
------------
NET ASSETS.................................................. $838,446,181
============
NET ASSETS CONSIST OF:
Capital (Par value of $0.01 per share with an unlimited
number of shares authorized).............................. $848,328,078
Net Unrealized Appreciation................................. 20,694,547
Accumulated Undistributed Net Investment Income............. (5,100,800)
Accumulated Net Realized Loss............................... (25,475,644)
------------
NET ASSETS.................................................. $838,446,181
============
MAXIMUM OFFERING PRICE PER SHARE:
Class A Shares:
Net asset value and redemption price per share (Based on
net assets of $652,814,161 and 99,278,945 shares of
beneficial interest issued and outstanding)............. $ 6.58
Maximum sales charge (4.75%* of offering price)......... 0.33
------------
Maximum offering price to public........................ $ 6.91
============
Class B Shares:
Net asset value and offering price per share (Based on
net assets of $87,650,032 and 13,361,863 shares of
beneficial interest issued and outstanding)............. $ 6.56
============
Class C Shares:
Net asset value and offering price per share (Based on
net assets of $35,805,863 and 5,455,704 shares of
beneficial interest issued and outstanding)............. $ 6.56
============
Class I Shares:
Net asset value and offering price per share (Based on
net assets of $62,176,125 and 9,448,197 shares of
beneficial interest issued and outstanding)............. $ 6.58
============
</Table>
* On sales of $100,000 or more, the sales charge will be reduced.
See Notes to Financial Statements 23
VAN KAMPEN CORPORATE BOND FUND
FINANCIAL STATEMENTS continued
Statement of Operations
For the Six Months Ended February 29, 2008 (Unaudited)
<Table>
INVESTMENT INCOME:
Interest.................................................... $22,487,333
Other....................................................... 94,700
-----------
Total Income............................................ 22,582,033
-----------
EXPENSES:
Investment Advisory Fee..................................... 1,604,444
Distribution (12b-1) and Service Fees
Class A................................................... 807,831
Class B................................................... 431,348
Class C................................................... 159,947
Transfer Agent Fees......................................... 759,983
Reports to Shareholders..................................... 93,978
Accounting and Administrative Expenses...................... 78,978
Registration Fees........................................... 40,592
Custody..................................................... 26,382
Professional Fees........................................... 26,235
Trustees' Fees and Related Expenses......................... 21,638
Other....................................................... 15,904
-----------
Total Expenses.......................................... 4,067,260
Less Credits Earned on Cash Balances.................... 12,788
-----------
Net Expenses............................................ 4,054,472
-----------
NET INVESTMENT INCOME....................................... $18,527,561
===========
REALIZED AND UNREALIZED GAIN/LOSS:
Realized Gain/Loss:
Investments............................................... $ 392,402
Futures................................................... (4,162,650)
Swap Contracts............................................ 3,717,959
Foreign Currency Transactions............................. 1,133
-----------
Net Realized Loss........................................... (51,156)
-----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 6,181,723
-----------
End of the Period:
Investments............................................. (7,491,045)
Futures................................................. (2,695,492)
Swap Contracts.......................................... 30,880,674
Foreign Currency Translation............................ 410
-----------
20,694,547
-----------
Net Unrealized Appreciation During the Period............... 14,512,824
-----------
NET REALIZED AND UNREALIZED GAIN............................ $14,461,668
===========
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $32,989,229
===========
</Table>
24 See Notes to Financial Statements
VAN KAMPEN CORPORATE BOND 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 Income.................................. $ 18,527,561 $ 35,016,654
Net Realized Loss...................................... (51,156) (14,179,245)
Net Unrealized Appreciation During the Period.......... 14,512,824 8,215,823
------------- -------------
Change in Net Assets from Operations................... 32,989,229 29,053,232
------------- -------------
Distributions from Net Investment Income:
Class A Shares....................................... (15,733,445) (30,504,356)
Class B Shares....................................... (1,772,209) (3,797,623)
Class C Shares....................................... (660,565) (1,211,915)
Class I Shares....................................... (1,290,180) (2,032,038)
------------- -------------
Total Distributions.................................... (19,456,399) (37,545,932)
------------- -------------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES.... 13,532,830 (8,492,700)
------------- -------------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold.............................. 134,867,371 249,847,615
Net Asset Value of Shares Issued Through Dividend
Reinvestment......................................... 17,912,779 34,753,106
Cost of Shares Repurchased............................. (160,310,819) (202,474,107)
------------- -------------
NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS..... (7,530,669) 82,126,614
------------- -------------
TOTAL INCREASE IN NET ASSETS........................... 6,002,161 73,633,914
NET ASSETS:
Beginning of the Period................................ 832,444,020 758,810,106
------------- -------------
End of the Period (Including accumulated undistributed
net investment income of $(5,100,800) and
$(4,171,962), respectively).......................... $ 838,446,181 $ 832,444,020
============= =============
</Table>
See Notes to Financial Statements 25
VAN KAMPEN CORPORATE BOND FUND
FINANCIAL HIGHLIGHTS (UNAUDITED)
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE 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........................... $ 6.47 $ 6.53 $ 6.78 $ 6.72 $ 6.58 $ 6.39
------ ------ ------ ------ ------ ------
Net Investment Income............ 0.15(a) 0.29(a) 0.28(a) 0.29 0.33 0.33(a)
Net Realized and Unrealized
Gain/Loss...................... 0.12 (0.04) (0.22) 0.09 0.16 0.25
------ ------ ------ ------ ------ ------
Total from Investment Operations... 0.27 0.25 0.06 0.38 0.49 0.58
------ ------ ------ ------ ------ ------
Less:
Distributions from Net Investment
Income......................... 0.16 0.31 0.31 0.32 0.35 0.39
Return of Capital
Distributions.................. -0- -0- -0- -0- -0-(c) -0-
------ ------ ------ ------ ------ ------
Total Distributions................ 0.16 0.31 0.31 0.32 0.35 0.39
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF THE
PERIOD........................... $ 6.58 $ 6.47 $ 6.53 $ 6.78 $ 6.72 $ 6.58
====== ====== ====== ====== ====== ======
Total Return (b)................... 4.17%* 3.93% 0.93% 5.79% 7.55% 9.20%
Net Assets at End of the Period (In
millions)........................ $652.8 $670.8 $591.2 $502.6 $394.7 $318.4
Ratio of Expenses to Average Net
Assets........................... 0.90% 0.91% 0.96% 0.99% 0.98% 1.01%
Ratio of Net Investment Income to
Average Net Assets............... 4.63% 4.48% 4.33% 4.29% 4.80% 4.98%
Portfolio Turnover................. 33%* 119% 45% 61% 38% 46%
* Non-Annualized
</Table>
(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. 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 $0.01 per share.
26 See Notes to Financial Statements
VAN KAMPEN CORPORATE BOND FUND
FINANCIAL HIGHLIGHTS (UNAUDITED) continued
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE 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........................... $6.45 $6.52 $ 6.76 $ 6.70 $ 6.57 $ 6.38
----- ----- ------ ------ ------ ------
Net Investment Income............ 0.13(a) 0.24(a) 0.23(a) 0.24 0.26 0.28(a)
Net Realized and Unrealized
Gain/Loss...................... 0.11 (0.05) (0.21) 0.09 0.16 0.25
----- ----- ------ ------ ------ ------
Total from Investment Operations... 0.24 0.19 0.02 0.33 0.42 0.53
----- ----- ------ ------ ------ ------
Less:
Distributions from Net Investment
Income......................... 0.13 0.26 0.26 0.27 0.29 0.34
Return of Capital
Distributions.................. -0- -0- -0- -0- -0-(c) -0-
----- ----- ------ ------ ------ ------
Total Distributions................ 0.13 0.26 0.26 0.27 0.29 0.34
----- ----- ------ ------ ------ ------
NET ASSET VALUE, END OF THE
PERIOD........................... $6.56 $6.45 $ 6.52 $ 6.76 $ 6.70 $ 6.57
===== ===== ====== ====== ====== ======
Total Return (b)................... 3.79%* 3.00% 0.30% 5.01% 6.59% 8.38%
Net Assets at End of the Period (In
millions)........................ $87.6 $87.3 $100.2 $123.6 $126.5 $135.6
Ratio of Expenses to Average Net
Assets........................... 1.66% 1.67% 1.72% 1.75% 1.75% 1.77%
Ratio of Net Investment Income to
Average Net Assets............... 3.87% 3.72% 3.57% 3.55% 4.06% 4.23%
Portfolio Turnover................. 33%* 119% 45% 61% 38% 46%
* Non-Annualized
</Table>
(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%, charged on certain redemptions
made within the first and second years 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 redemption of Fund shares.
(c) Amount is less than $0.01 per share.
See Notes to Financial Statements 27
VAN KAMPEN CORPORATE BOND FUND
FINANCIAL HIGHLIGHTS (UNAUDITED) continued
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE 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............................ $6.46 $6.52 $6.76 $6.71 $6.57 $6.38
----- ----- ----- ----- ----- -----
Net Investment Income............. 0.13(a) 0.25(a) 0.23(a) 0.24 0.27 0.28(a)
Net Realized and Unrealized
Gain/Loss....................... 0.10 (0.04) (0.21) 0.08 0.16 0.25
----- ----- ----- ----- ----- -----
Total from Investment Operations.... 0.23 0.21 0.02 0.32 0.43 0.53
----- ----- ----- ----- ----- -----
Less:
Distributions from Net Investment
Income.......................... 0.13 0.27 0.26 0.27 0.29 0.34
Return of Capital Distributions... -0- -0- -0- -0- -0-(d) -0-
----- ----- ----- ----- ----- -----
Total Distributions................. 0.13 0.27 0.26 0.27 0.29 0.34
----- ----- ----- ----- ----- -----
NET ASSET VALUE, END OF THE
PERIOD............................ $6.56 $6.46 $6.52 $6.76 $6.71 $6.57
===== ===== ===== ===== ===== =====
Total Return (b).................... 3.64%* 3.20%(c) 0.16%(c) 5.17%(c) 6.59%(c) 8.38%
Net Assets at End of the Period (In
millions)......................... $35.8 $31.0 $28.6 $29.2 $28.6 $29.6
Ratio of Expenses to Average Net
Assets............................ 1.66% 1.63%(c) 1.71%(c) 1.71%(c) 1.73%(c) 1.77%
Ratio of Net Investment Income to
Average Net Assets................ 3.88% 3.76%(c) 3.58%(c) 3.59%(c) 4.07%(c) 4.22%
Portfolio Turnover.................. 33%* 119% 45% 61% 38% 46%
* Non-Annualized
</Table>
(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 redemption of 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 8).
(d) Amount is less than $0.01 per share.
28 See Notes to Financial Statements
VAN KAMPEN CORPORATE BOND FUND
FINANCIAL HIGHLIGHTS (UNAUDITED) continued
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE SHARE OF THE FUND
OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
<Table>
<Caption>
SIX MONTHS YEAR ENDED AUGUST 12, 2005
ENDED AUGUST 31, (COMMENCEMENT OF
CLASS I SHARES FEBRUARY 29, -------------- OPERATIONS) TO
2008 2007 2006 AUGUST 31, 2005
--------------------------------------------------
NET ASSET VALUE, BEGINNING OF THE PERIOD... $6.48 $6.54 $6.78 $6.72
----- ----- ----- -----
Net Investment Income.................... 0.16(a) 0.31(a) 0.29(a) 0.03
Net Realized and Unrealized Gain/Loss.... 0.11 (0.04) (0.21) 0.06
----- ----- ----- -----
Total from Investment Operations........... 0.27 0.27 0.08 0.09
Less:
Distributions from Net Investment
Income................................. 0.17 0.33 0.32 0.03
----- ----- ----- -----
NET ASSET VALUE, END OF THE PERIOD......... $6.58 $6.48 $6.54 $6.78
===== ===== ===== =====
Total Return (b)........................... 4.14%* 4.19% 1.33% 1.11%*
Net Assets at End of the Period (In
millions)................................ $62.2 $43.3 $38.8 $28.7
Ratio of Expenses to Average Net Assets.... 0.66% 0.66% 0.72% 0.86%
Ratio of Net Investment Income to Average
Net Assets............................... 4.88% 4.73% 4.59% 4.32%
Portfolio Turnover......................... 33%* 119% 45% 61%
* Non-Annualized
</Table>
(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 redemption of Fund shares.
See Notes to Financial Statements 29
VAN KAMPEN CORPORATE BOND FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 29, 2008 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen Corporate Bond 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 primary investment objective is to seek to provide current income with
preservation of capital. Capital appreciation is a secondary objective that is
sought only when consistent with the Fund's primary investment objective. The
Fund commenced investment operations on September 23, 1971. 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, valuations are determined in accordance
with procedures established in good faith by the Board of Trustees. Futures
contracts are valued at the settlement price established each day on the
exchange in 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 TRANSACTIONS Security transactions are recorded on a trade date
basis. Realized gains and losses are determined on an identified cost basis.
The Fund may invest in repurchase agreements, which are short-term
investments in which the Fund acquires ownership of a debt security and the
seller agrees to repurchase the security at a future time and specified price.
The Fund may invest independently in repurchase agreements, or transfer
uninvested cash balances into a pooled cash account along with other investment
companies advised by Van Kampen Asset Management (the "Adviser") or its
affiliates, the daily aggregate of which is invested in repurchase agreements.
Repurchase agreements are fully collateralized by the underlying debt security.
The Fund will make payment for such securities only upon physical delivery or
evidence of book entry transfer to the account of the custodian bank. The seller
is required to maintain the value of the underlying security at not less than
the repurchase proceeds due the Fund. The Fund may purchase and sell securities
on a "when-issued" or "delayed delivery" basis, with settlement to occur at a
later date. The value of the security so purchased is subject to market
fluctuations during this period. The Fund will segregate assets with the
custodian having an aggregate value at least equal to the amount of the
when-issued or delayed delivery purchase
30
VAN KAMPEN CORPORATE BOND FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
commitments until payment is made. At February 29, 2008, 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. Other income is comprised
primarily of consent fees. Consent fees are earned as compensation for agreeing
to changes in the terms of debt instruments. 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 ("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 the loss and offset these losses against any future realized capital
gains. During the prior fiscal year, the Fund utilized capital losses carried
forward of $917,462. At August 31, 2007, the Fund had an accumulated capital
loss carryforward for tax purposes of $5,440,078, which will expire according to
the following schedule:
<Table>
<Caption>
AMOUNT EXPIRATION
$4,643,264.................................................. August 31, 2011
436,571.................................................. August 31, 2012
360,243.................................................. August 31, 2014
</Table>
At February 29, 2008, the cost and related gross unrealized appreciation and
depreciation are as follows:
<Table>
Cost of investments for tax purposes........................ $842,598,924
============
Gross tax unrealized appreciation........................... $ 12,988,667
Gross tax unrealized depreciation........................... (24,309,829)
------------
Net tax unrealized depreciation on investments.............. $(11,321,162)
============
</Table>
31
VAN KAMPEN CORPORATE BOND FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
E. DISTRIBUTION OF INCOME AND GAINS The Fund declares daily and pays monthly
dividends from net investment income. Net realized gains, if any, are
distributed at least annually. Distributions from net realized gains for book
purposes may include short-term capital gains and gains on futures transactions.
All short-term capital gains and a portion of futures gains are included in
ordinary income for tax purposes.
The tax character of distributions paid during the year ended August 31,
2007 was as follows:
<Table>
Distributions paid from:
Ordinary income........................................... $37,550,290
Long-term capital gain.................................... -0-
-----------
$37,550,290
===========
</Table>
As of August 31, 2007, the component of distributable earnings on a tax
basis was as follows:
<Table>
Undistributed ordinary income............................... $213,392
</Table>
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, or gains or losses recognized on securities for tax purposes, but
not for book purposes.
F. CREDITS EARNED ON CASH BALANCES During the six months ended February 29,
2008, the Fund's custody fee was reduced by $12,788 as a result of credits
earned on cash balances.
G. FOREIGN CURRENCY TRANSLATION Assets and liabilities denominated in foreign
currencies and commitments under forward foreign 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
gains 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 $500 million.......................................... .42%
Next $750 million........................................... .35
Over $1.250 billion......................................... .22
</Table>
For the six months ended February 29, 2008, the Fund recognized expenses of
approximately $9,900 representing legal services provided by Skadden, Arps,
Slate, Meagher &
32
VAN KAMPEN CORPORATE BOND FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
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 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 $28,200 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 $666,500
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 of those funds
selected by the trustees. Investments in such funds of $105,468 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, Van Kampen, as Distributor for
the Fund, received commissions on sales of the Fund's Class A Shares of
approximately $186,200 and contingent deferred sales charge (CDSC) on redeemed
shares of approximately $80,100. Sales charges do not represent expenses of the
Fund.
33
VAN KAMPEN CORPORATE BOND FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
3. CAPITAL TRANSACTIONS
For the six months ended February 29, 2008 and 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....................... 14,400,047 $ 94,391,876 31,653,760 $ 206,860,308
Class B....................... 1,655,907 10,860,967 2,961,293 19,296,853
Class C....................... 1,279,713 8,366,242 1,665,757 10,866,145
Class I....................... 3,236,078 21,248,286 1,963,276 12,824,309
----------- ------------- ----------- -------------
Total Sales..................... 20,571,745 $ 134,867,371 38,244,086 $ 249,847,615
=========== ============= =========== =============
Dividend Reinvestment:
Class A....................... 2,254,451 $ 14,796,944 4,360,460 $ 28,518,213
Class B....................... 247,368 1,619,738 522,633 3,411,386
Class C....................... 84,044 550,395 147,931 966,076
Class I....................... 143,960 945,702 283,594 1,857,431
----------- ------------- ----------- -------------
Total Dividend Reinvestment..... 2,729,823 $ 17,912,779 5,314,618 $ 34,753,106
=========== ============= =========== =============
Repurchases:
Class A....................... (21,054,420) $(138,080,193) (22,823,540) $(148,886,963)
Class B....................... (2,070,128) (13,520,485) (5,330,143) (34,719,828)
Class C....................... (710,287) (4,635,559) (1,391,218) (9,072,827)
Class I....................... (620,899) (4,074,582) (1,497,450) (9,794,489)
----------- ------------- ----------- -------------
Total Repurchases............... (24,455,734) $(160,310,819) (31,042,351) $(202,474,107)
=========== ============= =========== =============
</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 $900, 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.
5. INVESTMENT TRANSACTIONS
During the period, the cost of purchases and proceeds from sales of investments,
excluding short-term investments and U.S. Government securities, were
$166,139,965 and $140,019,545 respectively. The cost of purchases and proceeds
from sales of long-term U.S. Government securities, including paydowns on
mortgage-backed securities, for the period were $93,121,761 and $142,156,554,
respectively.
6. MORTGAGE BACKED SECURITIES
The Fund may invest in various types of Mortgage Backed Securities. A Mortgage
Backed Security (MBS) is a pass-through security created by pooling mortgages
and selling
34
VAN KAMPEN CORPORATE BOND FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
participations in the principal and interest payments received from borrowers.
Most of these securities are guaranteed by federally sponsored
agencies -- Government National Mortgage Association (GNMA), Federal National
Mortgage Association (FNMA) or Federal Home Loan Mortgage Corporation (FHLMC). A
Collateralized Mortgage Obligation (CMO) is a bond which is collateralized by a
pool of MBS's.
These securities derive their value from or represent interests in a pool of
mortgages, or mortgage securities. Mortgage securities are subject to prepayment
risk -- the risk that, as mortgage interest rates fall, borrowers will refinance
and "prepay" principal. A fund holding mortgage securities that are experiencing
prepayments will have to reinvest these payments at lower prevailing interest
rates. On the other hand, when interest rates rise, borrowers are less likely to
refinance resulting in lower prepayments. This can effectively extend the
maturity of a fund's mortgage securities resulting in greater price volatility.
It can be difficult to measure precisely the remaining life of a mortgage
security or the average life of a portfolio of such securities.
To the extent a fund invests in mortgage securities offered by
non-governmental issuers, such as commercial banks, savings and loan
institutions, private mortgage insurance companies, mortgage bankers and other
secondary market issuers, the Fund may be subject to additional risks. Timely
payment of interest and principal of non-governmental issuers are supported by
various forms of private insurance or guarantees, including individual loan,
title, pool and hazard insurance purchased by the issuer. There can be no
assurance that the private insurers can meet their obligations under the
policies.
An unexpectedly high rate of defaults on the mortgages held by a mortgage
pool may adversely affect the value of a mortgage backed security and could
result in losses to a Fund. The risk of such defaults is generally higher in the
case of mortgage pools that include subprime mortgages. Subprime mortgages refer
to loans made to borrowers with weakened credit histories or with a lower
capacity to make timely payment on their mortgages.
7. DERIVATIVE FINANCIAL INSTRUMENTS
A derivative financial instrument in very general terms refers to a security
whose value is "derived" from the value of an underlying asset, reference rate
or index.
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 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
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
35
VAN KAMPEN CORPORATE BOND FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
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 six months ended February 29,
2008, were as follows:
<Table>
<Caption>
CONTRACTS
Outstanding at August 31, 2007.............................. 3,297
Futures Opened.............................................. 8,213
Futures Closed.............................................. (8,375)
------
Outstanding at February 29, 2008............................ 3,135
======
</Table>
B. 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
36
VAN KAMPEN CORPORATE BOND FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
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 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.
8. 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 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 $400,700 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.
9. INDEMNIFICATIONS
The Fund enters into contracts that contain a variety of indemnifications. The
Fund's maximum exposure under these arrangements is unknown. However, the Fund
has not had prior claims or losses pursuant to these contracts and expects the
risk of loss to be remote.
10. 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.
37
VAN KAMPEN CORPORATE BOND 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. WOOLEY
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.
38
Van Kampen Corporate Bond 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 Corporate Bond 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 Corporate Bond 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.
17, 117, 217, 617
CORPSAN 4/08
(VAN KAMPEN INVESTMENTS LOGO) IU08-02012P-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 Corporate Bond 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