<Page>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-4269
Van Kampen Trust
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
1221 Avenue of the Americas, New York, New York 10020
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(Address of principal executive offices) (Zip code)
Ronald Robison
1221 Avenue of the Americas, New York, New York 10020
- --------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: 212-762-4000
Date of fiscal year end: 3/31
Date of reporting period: 3/31/04
<Page>
Item 1. Reports to Shareholders.
The Trust's annual report transmitted to shareholders pursuant to Rule 30e-1
under the Investment Company Act of 1940 is as follows:
<Page>
VAN KAMPEN
HIGH YIELD
FUND
ANNUAL REPORT
MARCH 31, 2004
[PHOTO OF MAN FISHING]
[PHOTO OF MAN/WOMAN DANCING AT WEDDING]
[PHOTO OF MAN/GIRL SAILING]
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ENJOY LIFE'S TRUE WEALTH
[VANKAMPEN INVESTMENTS LOGO]
GENERATIONS OF EXPERIENCE(SM)
PRIVACY NOTICE INFORMATION ON THE BACK.
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WELCOME, SHAREHOLDER
In this report, you'll learn about how your investment in Van Kampen High
Yield Fund performed during the annual period. The portfolio management team
will provide an overview of the market conditions and discuss some of the
factors that affected investment performance during the reporting period. In
addition, this report includes the fund's financial statements and a list of
fund investments as of March 31, 2004.
This material must be preceded or accompanied by a prospectus for the fund
being offered.
Market forecasts provided in this report may not necessarily come to pass.
There is no assurance that a mutual fund will achieve its investment
objective. Funds are subject to market risk, which is the possibility that
the market values of securities owned by the fund will decline and that the
value of fund shares may therefore be less than what you paid for them.
Accordingly, you can lose money investing in this fund. Please see the
prospectus for more complete information on investment risks.
NOT FDIC INSURED OFFER NO BANK GUARANTEE MAY LOSE VALUE
NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY NOT A DEPOSIT
<Page>
PERFORMANCE SUMMARY AS OF 3/31/04
PERFORMANCE OF A $10,000 INVESTMENT
This chart compares your fund's performance to that of the Credit Suisse First
Boston High Yield Index from 3/31/94 through 3/31/04. Class A shares adjusted
for sales charges.
[CHART]
<Table>
<Caption>
VAN KAMPEN CREDIT SUISSE FIRST
HIGH YIELD FUND BOSTON HIGH YIELD INDEX
3/31/94 $9,525 $9,706
6/30/94 $9,406 $9,566
9/30/94 $9,323 $9,719
12/31/94 $9,279 $9,715
3/31/95 $9,695 $10,172
6/30/95 $10,206 $10,762
9/30/95 $10,545 $11,085
12/31/95 $10,904 $11,404
3/31/96 $11,161 $11,650
6/30/96 $11,355 $11,834
9/30/96 $11,833 $12,278
12/31/96 $12,265 $12,820
3/31/97 $12,412 $13,009
6/30/97 $12,899 $13,571
9/30/97 $13,397 $14,209
12/31/97 $13,611 $14,439
3/31/98 $14,065 $14,873
6/30/98 $14,107 $15,061
9/30/98 $12,927 $14,135
12/31/98 $13,414 $14,523
3/31/99 $13,806 $14,761
6/30/99 $13,850 $14,932
9/30/99 $13,787 $14,693
12/31/99 $14,257 $14,999
3/31/2000 $14,289 $14,806
6/30/2000 $14,242 $14,873
9/30/2000 $14,118 $14,974
12/31/2000 $12,998 $14,217
3/31/2001 $13,482 $14,918
6/30/2001 $12,722 $14,825
9/30/2001 $11,806 $14,235
12/31/2001 $12,320 $15,038
3/31/2002 $12,128 $15,416
6/30/2002 $11,276 $15,061
9/30/2002 $10,614 $14,638
12/31/2002 $11,163 $15,506
3/31/2003 $11,932 $16,577
6/30/2003 $12,880 $18,191
9/30/2003 $13,252 $18,744
12/31/2003 $13,902 $19,836
3/31/2004 $14,121 $20,352
</Table>
Source for index data: Lipper Inc.
<Table>
<Caption>
A SHARES B SHARES C SHARES
SINCE 6/27/86 SINCE 5/17/93 SINCE 8/13/93
- ----------------------------------------------------------------------------------------------------
W/MAX. W/MAX. W/MAX.
AVERAGE ANNUAL W/O SALES 4.75% SALES W/O SALES 4.00% SALES W/O SALES 1.00% SALES
TOTAL RETURNS CHARGES CHARGE CHARGES CHARGE CHARGES CHARGE
Since Inception 5.99% 5.71% 3.96% 3.96% 3.35% 3.35%
10-year 4.02 3.51 3.53 3.53 3.22 3.22
5-year 0.45 -0.52 -0.30 -0.48 -0.30 -0.30
1-year 18.35 12.71 17.62 13.62 17.65 16.65
30-Day SEC
Subsidized Yield 5.93% 5.43% 5.44%
30-Day SEC Yield 5.83 5.33 5.34
</Table>
Past performance is no guarantee of future results and current performance may
be lower or higher than the figures shown. For more up-to-date information,
including 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.
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 six), 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 1.00 percent for Class B and C shares. The since
inception and 10-year returns for Class B shares reflect their conversion into
Class A shares six 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. See footnote 3 in the Notes to Financial Statements for
additional information. Figures shown above assume reinvestment of all dividends
and capital gains. The fund's adviser has waived or reimbursed fees and expenses
from time to time; absent such waivers/reimbursements the fund's returns would
have been lower. SEC yield is a calculation for determining the amount of
portfolio income, excluding non-income items as prescribed by the SEC. The
subsidized SEC yields reflect some or all of the expenses that the adviser had
voluntarily waived. Yields are subject to change.
The Credit Suisse First Boston High Yield Index is a broad-based index which
reflects the general performance of a wide range of selected bonds within the
public high-yield debt market. The index is unmanaged and does not include any
sales charges or fees. Such costs would lower performance. It is not possible to
invest directly in an index.
1
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FUND REPORT
FOR THE 12-MONTH PERIOD ENDED MARCH 31, 2004
Van Kampen High Yield Fund is managed by the adviser's Taxable Fixed Income
team. Members of the team include Sheila A. Finnerty, Managing Director; Gordon
Loery, Executive Director; and Joshua Givelber and Chad Liu, Vice Presidents.(1)
MARKET CONDITIONS
The high-yield market staged a strong rally through most of the 12-month period
ended March 31, 2004. In fact, before briefly succumbing to a technically driven
market correction in mid-February, the high-yield market produced strong returns
for much of the past 18 months. The rally was sparked by an improving U.S.
economy and inexpensive valuations in many high-yield bonds. Other positive
influences included an improving stock market--which benefited the balance
sheets of many high-yield issuers--and steady declines in high-yield default
rates. According to Moody's Investor Service, the annual default rate of
high-yield issues declined from 10.9 percent in January 2002 to 4.1 percent in
March 2004. With so many positive factors working for the high-yield market,
investors have been willing to assume more credit risk within this asset class.
In addition, high-yield bond market performance has been supported by strong
inflows of money into the asset class beginning in late 2002. These inflows
reflect increasing demand for high-yield bonds, which drives up bond prices. For
2003, AMG Data Services reported a record $26 billion of inflows into high-yield
bonds. The high-yield market sell-off that occurred during the last two weeks of
February was likely due to two factors. First, corporations continued to come to
market with a heavy supply of high-yield paper. Second, many institutional
investors who had emphasized high yield within their portfolios rotated out of
the asset class, which resulted in a $2.5 billion outflow over a short period of
time.
PERFORMANCE ANALYSIS
During the reporting period, the fund returned 18.35 percent (Class A shares
unadjusted for sales charge), yet underperformed its benchmark, the Credit
Suisse First Boston High Yield Index. (See table on page 4.) The fund's relative
performance versus its benchmark was hindered by our concerns over the quality
of securities available for purchase, which led us to assume a slightly more
conservative stance compared with the benchmark index. As background, weakened
U.S. economic activity in recent years had led to credit downgrades for many
high-yield companies, raising the portion of the market carrying a CCC rating or
coming under the category of "distressed." While we maintained some exposure to
this segment of the market, our analysis indicated that many of the companies
carrying this rating were too speculative for the fund's portfolio.
(1) Team members may change without notice at any time.
2
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Therefore, the portfolio held a smaller segment of CCC-rated and distressed
bonds than the index, which dampened returns when these bonds outperformed the
overall market.
In addition, while the market rally appeared to reward entire credit tiers and
sectors, we remained focused on thorough bottom-up analysis of individual
securities. As a result, the fund was underweighted in the utilities and
telecommunications sectors relative to the benchmark during the period because
our analysts were unwilling to recommend companies with unfavorable fundamental
characteristics. Both sectors posted strong performance for the 12 months ended
March 31.
During the period, the fund benefited from positive security selection within
the diversified-media and wireless-communications sectors. Within diversified
media, Dex Media and Advanstar Communications performed well, while in wireless,
SBA Communications and American Tower Corporation posted gains. These companies'
bonds benefited from improving fundamentals, and from the fact that their debt
securities had previously been undervalued.
On an ongoing basis, we seek to maintain a balanced and well-diversified
portfolio. The fund's portfolio consists of approximately 150 issuers. This
strategy diversifies the fund's credit risk, yet it also allows sufficient
average security size for strategic overweights. We continue to maintain an
average credit quality of high B, which is very close to that of the benchmark.
In terms of size, we focus on larger companies because of their financial
flexibility, their ability to withstand less-favorable financial markets and
their superior access to capital markets.
The U.S. and global economies have continued to show signs of sustainable
growth. Despite the increasing prospect for short-term interest-rate increases
later this year, the fundamentals of the high-yield market remain positive, with
favorable earnings, lower default rates and tightening high-yield credit
spreads. At the same time, many of these positive factors have already been
"priced into" the market. We believe that the tremendous rally in distressed
high-yield bonds has for the most part run its course and that price
appreciation should subside, with returns driven more by coupon income as
occurred in March. We look for the fund's holdings to earn their coupons for the
remainder of 2004, with the hope of some additional price appreciation in the
BB- and B-rated securities that make up the bulk of the portfolio.
Going forward, we will continue our rigorous bottom-up security analysis, and
monitor the high-yield market closely for individual credits with attractive
yield and total-return potential.
3
<Page>
TOTAL RETURN FOR THE 12-MONTH PERIOD ENDED MARCH 31, 2004
<Table>
<Caption>
CREDIT SUISSE FIRST BOSTON
CLASS A CLASS B CLASS C HIGH YIELD INDEX
18.35% 17.62% 17.65% 22.86%
</Table>
The performance for the three 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.
TOP 5 SECTORS AS OF 3/31/04
<Table>
Utility 9.7%
Energy 9.4
Diversified Media 7.6
Chemicals 6.8
Forest Products 6.6
</Table>
RATINGS ALLOCATION AS OF 3/31/04
<Table>
BBB/Baa 2.0%
BB/Ba 29.2
B/B 51.9
CCC/Caa 13.7
CC/Ca 0.1
C/C 0.5
Non-Rated 2.6
</Table>
Subject to change daily. Provided for informational purposes only and should not
be deemed as a recommendation to buy or sell the securities mentioned or
securities in the sectors shown above. Sectors percentages are as a percentage
of long-term investments. Securities are classified by sectors that represent
broad groupings of related industries. Rating percentages are as a percentage of
long-term debt investments. Ratings allocations are based upon ratings as issued
by Standard and Poor's and Moody's. 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.
4
<Page>
HOUSEHOLDING NOTICE
To reduce fund expenses, the fund attempts to eliminate duplicate mailings
to the same address. The fund delivers a single copy of certain shareholder
documents to investors who share an address, even if the accounts are
registered under different names. The fund's prospectuses and shareholder
reports (including annual privacy notices) will be delivered to you in this
manner indefinitely unless you instruct us otherwise. You can request
multiple copies of these documents by either calling (800) 341-2911 or
writing to Van Kampen Investor Services at 1 Parkview Plaza, P.O. Box 5555,
Oakbrook Terrace, IL 60181. Once Investor Services has received your
instructions, we will begin sending individual copies for each account
within 30 days.
PROXY VOTING POLICIES AND PROCEDURES
A description of the trust's policies and procedures with respect to the
voting of proxies relating to the trust's portfolio securities is available
without charge, upon request, by calling 1-800-847-2424. This information
is also available on the Securities and Exchange Commission's website at
http://www.sec.gov.
5
<Page>
VAN KAMPEN HIGH YIELD FUND
PORTFOLIO OF INVESTMENTS - MARCH 31, 2004
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------------------------
DOMESTIC CORPORATE BONDS 81.8%
BROADCASTING 0.7%
$1,070 Granite Broadcasting Corp.,
144A--Private Placement (a) 9.750% 12/01/10 $ 1,037,900
1,462 Interep National Radio Sales, Inc., Ser B 10.000 07/01/08 1,324,937
------------
2,362,837
------------
BUILDING MATERIALS 0.2%
530 Koppers, Inc.,144A--Private Placement (a) 9.875 10/15/13 585,650
------------
CABLE 4.2%
400 Avalon Cable, LLC 11.875 12/01/08 424,194
1,775 Charter Communications Holdings 9.625 11/15/09 1,508,750
2,275 Charter Communications Holdings (b) 0/11.750 01/15/10 1,842,750
1,040 CSC Holdings, Inc. 8.125 07/15/09 1,123,200
395 CSC Holdings, Inc. 10.500 05/15/16 458,200
2,195 DirecTV Holdings, LLC 8.375 03/15/13 2,513,275
1,616 Echostar DBS Corp. 9.125 01/15/09 1,834,160
1,585 Echostar DBS Corp., 144A--Private Placement (a) 6.375 10/01/11 1,691,987
1,036 Pegasus Communications Corp., Ser B 9.750 12/01/06 918,155
430 Pegasus Communications Corp., Ser B 12.500 08/01/07 380,550
120 Pegasus Satellite Communications 13.500 03/01/07 89,400
790 Renaissance Media Group 10.000 04/15/08 817,650
------------
13,602,271
------------
CHEMICALS 5.6%
1,747 Equistar Chemicals LP 10.125 09/01/08 1,886,760
620 Equistar Chemicals LP 10.625 05/01/11 671,150
722 FMC Corp. 10.250 11/01/09 851,960
755 Huntsman Advanced Materials, LLC,
144A--Private Placement (a) 11.000 07/15/10 856,925
1,235 Huntsman ICI Chemicals, LLC 10.125 07/01/09 1,262,787
1,200 Huntsman International, LLC (EUR) (c) 10.125 07/01/09 1,421,343
2,980 ISP Holdings, Inc. 10.625 12/15/09 3,322,700
1,045 Millennium America, Inc. 7.000 11/15/06 1,068,512
1,210 Millennium America, Inc. 9.250 06/15/08 1,297,725
2,025 Nalco Co., 144A--Private Placement (a) 7.750 11/15/11 2,126,250
1,815 Nalco Financial Holdings, Inc.,
144A--Private Placement (a) (b) 0/9.000 02/01/14 1,089,000
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
6
<Page>
VAN KAMPEN HIGH YIELD FUND
PORTFOLIO OF INVESTMENTS - MARCH 31, 2004 (CONTINUED)
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------------------------
CHEMICALS (CONTINUED)
$1,250 Rockwood Specialties Group, Inc. 10.625% 05/15/11 $ 1,387,500
810 Westlake Chemical Corp. 8.750 07/15/11 899,100
------------
18,141,712
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CONSUMER PRODUCTS 1.4%
805 Oxford Industrials, Inc.,
144A--Private Placement (a) 8.875 06/01/11 869,400
1,395 Prestige Brands Inc.
144A--Private Placement (a) (d) 9.250 04/15/12 1,381,050
1,165 Rayovac Corp. 8.500 10/01/13 1,261,112
1,800 Sleepmaster, LLC (e) (f) (g) 11.000 05/15/09 396,000
585 Tempur Pedic, Inc., 144A--Private Placement (a) 10.250 08/15/10 675,675
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4,583,237
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DIVERSIFIED MEDIA 5.1%
365 Advanstar Communications, Inc. 10.750 08/15/10 402,869
255 Advanstar Communications, Inc. 12.000 02/15/11 271,894
2,567 Advanstar Communications, Inc.
(Variable Rate Coupon) 8.620 08/15/08 2,711,499
2,230 Cinemark, Inc., 144A--Private Placement (a) (b) 0/9.750 03/15/14 1,393,750
1,275 Dex Media East Finance Corp. 12.125 11/15/12 1,494,937
1,305 Dex Media West Finance Corp.,
144A--Private Placement (a) 9.875 08/15/13 1,455,075
2,450 Dex Media, Inc., 144A--Private Placement (a) (b) 0/9.000 11/15/13 1,580,250
1,015 Muzak, Inc. 10.000 02/15/09 1,056,869
1,586 Muzak, Inc. 9.875 03/15/09 1,536,437
1,480 Nebraska Book Co., Inc.,
144A--Private Placement (a) 8.625 03/15/12 1,531,800
715 PEI Holdings, Inc. 11.000 03/15/10 829,400
2,000 Primedia, Inc. 8.875 05/15/11 2,060,000
20 Salem Communications Corp. 7.750 12/15/10 21,225
------------
16,346,005
------------
ENERGY 8.6%
2,213 BRL Universal Equipment 8.875 02/15/08 2,401,105
2,265 Chesapeake Energy Corp. 7.500 09/15/13 2,514,150
840 Citgo Petroleum Corp. 11.375 02/01/11 984,900
617 DI Industries, Inc. 8.875 07/01/07 636,281
3,345 El Paso Production Holding Co. 7.750 06/01/13 3,119,212
1,915 Frontier Oil Corp. 11.750 11/15/09 2,135,225
374 Gulfterra Energy Partners LP, Ser B 8.500 06/01/10 433,840
1,302 Gulfterra Energy Partners LP, Ser B 10.625 12/01/12 1,640,520
1,160 Hanover Compressor Co. 8.625 12/15/10 1,252,800
245 Hanover Equipment Trust 8.500 09/01/08 263,375
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
7
<Page>
VAN KAMPEN HIGH YIELD FUND
PORTFOLIO OF INVESTMENTS - MARCH 31, 2004 (CONTINUED)
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------------------------
ENERGY (CONTINUED)
$1,038 Hanover Equipment Trust 8.750% 09/01/11 $ 1,126,230
2,120 Hilcorp Energy Finance Corp.,
144A--Private Placement (a) 10.500 09/01/10 2,363,800
957 Magnum Hunter Resources, Inc. 9.600 03/15/12 1,074,232
335 MSW Energy Holdings Finance Corp. 8.500 09/01/10 368,500
1,510 MSW Energy Holdings Finance II,
144A--Private Placement (a) 7.375 09/01/10 1,600,600
1,299 Port Arthur Finance Corp., Ser A 12.500 01/15/09 1,539,884
895 Tesoro Petroleum Corp. 9.000 07/01/08 938,631
1,030 Tesoro Petroleum Corp. 9.625 04/01/12 1,153,600
2,055 Vintage Petroleum, Inc. 7.875 05/15/11 2,219,400
------------
27,766,285
------------
FOOD & DRUG 1.0%
1,405 Delhaize America, Inc. 8.125 04/15/11 1,622,775
500 Jitney-Jungle Stores America, Inc. (e) (f) (g) 12.000 03/01/06 -0-
1,422 Kroger Co., 144A--Private Placement (a) 8.500 07/15/17 1,632,056
------------
3,254,831
------------
FOOD & TOBACCO 2.9%
1,285 Michael Foods, Inc., Ser B,
144A--Private Placement (a) 8.000 11/15/13 1,368,525
2,700 Pilgrim's Pride Corp. 9.625 09/15/11 2,922,750
870 PPC Escrow Corp., 144A--Private Placement (a) 9.250 11/15/13 913,500
1,850 Smithfield Foods, Inc. 7.625 02/15/08 2,007,250
515 Smithfield Foods, Inc. 8.000 10/15/09 578,087
450 Smithfield Foods, Inc. 7.750 05/15/13 497,250
970 Standard Commercial Corp.,
144A--Private Placement (a) (d) 8.000 04/15/12 1,011,225
------------
9,298,587
------------
FOREST PRODUCTS 3.9%
2,925 Georgia-Pacific Corp. 8.875 02/01/10 3,429,562
1,345 Graphic Packaging International, Inc. 9.500 08/15/13 1,526,575
130 Owens-Brockway Glass Containers, Inc. 8.875 02/15/09 141,050
150 Owens-Brockway Glass Containers, Inc. 7.750 05/15/11 157,500
1,270 Owens-Brockway Glass Containers, Inc. 8.750 11/15/12 1,387,475
1,730 Owens-Illinois, Inc. 7.500 05/15/10 1,665,125
890 Pliant Corp. 13.000 06/01/10 774,300
1,266 Pliant Corp. 13.000 06/01/10 1,101,420
490 Tekni-Plex, Inc., 144A--Private Placement (a) 8.750 11/15/13 490,000
1,747 Tekni-Plex, Inc., Ser B 12.750 06/15/10 1,838,717
------------
12,511,724
------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
8
<Page>
VAN KAMPEN HIGH YIELD FUND
PORTFOLIO OF INVESTMENTS - MARCH 31, 2004 (CONTINUED)
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------------------------
GAMING & LEISURE 5.3%
$ 375 Global Cash Access, LLC,
144A--Private Placement (a) 8.750% 03/15/12 $ 391,875
432 Hilton Hotels Corp. 7.950 04/15/07 481,680
1,215 Hilton Hotels Corp. 7.625 12/01/12 1,401,806
886 HMH Properties, Inc. 7.875 08/01/08 924,762
2,006 Horseshoe Gaming, LLC, Ser B 8.625 05/15/09 2,111,315
800 LodgeNet Entertainment Corp. 9.500 06/15/13 892,000
2,510 MGM Mirage, Inc. 6.000 10/01/09 2,648,050
2,050 Park Place Entertainment Corp. 7.875 12/15/05 2,188,375
475 Park Place Entertainment Corp. 7.000 04/15/13 520,125
386 Starwood Hotels & Resorts Worldwide, Inc. 7.375 05/01/07 421,705
1,361 Starwood Hotels & Resorts Worldwide, Inc. 7.875 05/01/12 1,544,735
930 Station Casinos, Inc.,
144A--Private Placement (a) 6.000 04/01/12 967,200
1,350 Station Casinos, Inc.,
144A--Private Placement (a) 6.500 02/01/14 1,368,562
1,174 Venetian Casino Resort, LLC 11.000 06/15/10 1,355,970
------------
17,218,160
------------
HEALTHCARE 4.0%
420 AmerisourceBergen Corp. 8.125 09/01/08 470,400
1,825 AmerisourceBergen Corp. 7.250 11/15/12 1,993,812
869 Fisher Scientific International, Inc. 8.125 05/01/12 968,935
475 Fisher Scientific International, Inc.,
144A--Private Placement (a) 8.000 09/01/13 535,562
300 Fresenius Medical Care Capital Trust II 7.875 02/01/08 327,750
2,210 Fresenius Medical Care Capital Trust IV 7.875 06/15/11 2,453,100
303 HCA, Inc. 8.750 09/01/10 363,344
1,100 HCA, Inc. 6.950 05/01/12 1,201,663
115 HCA, Inc. 7.190 11/15/15 126,976
210 Manor Care, Inc. 7.500 06/15/06 231,000
478 Manor Care, Inc. 8.000 03/01/08 549,102
310 National Nephrology Associates, Inc.,
144A--Private Placement (a) 9.000 11/01/11 361,150
1,075 Team Health, Inc.,
144A--Private Placement (a) 9.000 04/01/12 1,050,812
970 Tenet Healthcare Corp. 5.375 11/15/06 916,650
360 Tenet Healthcare Corp. 6.500 06/01/12 312,300
1,355 Tenet Healthcare Corp. 7.375 02/01/13 1,229,663
------------
13,092,219
------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
9
<Page>
VAN KAMPEN HIGH YIELD FUND
PORTFOLIO OF INVESTMENTS - MARCH 31, 2004 (CONTINUED)
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------------------------
HOUSING 6.3%
$3,755 Associated Materials, Inc.,
144A--Private Placement (a) (b) 0/11.250% 03/01/14 $ 2,299,938
735 CB Richard Ellis Service, Inc. 9.750 05/15/10 828,713
1,869 CB Richard Ellis Service, Inc. 11.250 06/15/11 2,121,315
1,405 D.R. Horton, Inc. 6.875 05/01/13 1,566,575
415 Interface, Inc. 7.300 04/01/08 412,925
520 Interface, Inc. 10.375 02/01/10 590,200
1,585 Interface, Inc., 144A--Private Placement (a) 9.500 02/01/14 1,577,075
774 Istar Financial, Inc. 8.750 08/15/08 901,710
2,105 Jacuzzi Brands, Inc. 9.625 07/01/10 2,336,550
1,575 LNR Property Corp. 7.625 07/15/13 1,677,375
3,410 Nortek Holdings, Inc.,
144A--Private Placement (a) (b) 0/10.000 05/15/11 2,608,650
599 Tech Olympic USA, Inc. 9.000 07/01/10 654,408
725 Tech Olympic USA, Inc. 9.000 07/01/10 792,063
1,044 Tech Olympic USA, Inc. 10.375 07/01/12 1,182,330
875 WII Components, Inc.,
144A--Private Placement (a) 10.000 02/15/12 905,625
------------
20,455,452
------------
INFORMATION TECHNOLOGY 1.6%
1,605 Avaya, Inc. 11.125 04/01/09 1,921,988
1,255 Iron Mountain, Inc. 8.625 04/01/13 1,374,225
1,325 Iron Mountain, Inc. 7.750 01/15/15 1,397,875
525 Iron Mountain, Inc. 6.625 01/01/16 511,875
------------
5,205,963
------------
MANUFACTURING 3.1%
295 ABB Finance, Inc. 6.750 06/03/04 296,828
691 Brand Services, Inc. 12.000 10/15/12 808,470
480 Flowserve Corp. 12.250 08/15/10 555,600
637 Johnsondiversey, Inc. (EUR) (c) 9.625 05/15/12 846,603
1,567 Johnsondiversey, Inc., Ser B 9.625 05/15/12 1,715,865
55 Manitowoc, Inc. (EUR) (c) 10.375 05/15/11 75,805
1,345 Manitowoc, Inc. 10.500 08/01/12 1,546,750
961 NMHG Holdings Co. 10.000 05/15/09 1,061,905
2,768 Trimas Corp. 9.875 06/15/12 3,030,960
------------
9,938,786
------------
METALS 2.6%
2,596 Doe Run Resources Corp.,
144A--Private Placement (a) (h) 11.750 11/01/08 1,441,011
790 General Cable Corp., 144A--Private Placement (a) 9.500 11/15/10 872,950
1,600 GS Technologies Operating, Inc. (e) (f) (g) 12.000 09/01/04 160
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
10
<Page>
VAN KAMPEN HIGH YIELD FUND
PORTFOLIO OF INVESTMENTS - MARCH 31, 2004 (CONTINUED)
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------------------------
METALS (CONTINUED)
$1,050 GS Technologies Operating, Inc. (e) (f) (g) 12.250% 10/01/05 $ -0-
1,444 Intermet Corp. 9.750 06/15/09 1,379,020
805 Republic Engineered Products, LLC (e) (f) 10.000 08/16/09 567,318
1,730 UCAR Finance, Inc. 10.250 02/15/12 2,024,100
1,754 United States Steel Corp. 9.750 05/15/10 2,008,330
------------
8,292,889
------------
RETAIL 2.3%
1,660 AutoNation, Inc. 9.000 08/01/08 1,950,500
355 Big 5 Corp., Ser B 10.875 11/15/07 369,733
1,100 General Nutrition Center, Inc.,
144A--Private Placement (a) 8.500 12/01/10 1,160,500
2,535 Payless Shoesource, Inc. 8.250 08/01/13 2,477,963
1,390 Petro Stopping Center Financial,
144A--Private Placement (a) 9.000 02/15/12 1,438,650
------------
7,397,346
------------
SERVICES 2.0%
510 Allied Waste North America, Inc. 9.250 09/01/12 582,675
1,305 Allied Waste North America, Inc. 7.875 04/15/13 1,432,238
900 Encompass Services Corp. (e) (f) (g) 10.500 05/01/09 -0-
1,500 Hydrochem Industrial Services, Inc., Ser B 10.375 08/01/07 1,507,500
1,560 United Rentals North America, Inc.,
144A--Private Placement (a) 6.500 02/15/12 1,560,000
1,580 United Rentals North America, Inc.,
144A--Private Placement (a) 7.750 11/15/13 1,548,400
------------
6,630,813
------------
TELECOMMUNICATIONS 3.0%
1,820 Exodus Communications, Inc. (e) (f) (g) 11.250 07/01/08 -0-
440 Exodus Communications, Inc. (e) (f) (g) 11.625 07/15/10 -0-
1,250 Exodus Communications, Inc. (EUR) (c) (e) (f) (g) 11.375 07/15/08 -0-
2,945 GST Network Funding, Inc. (e) (f) (g) 10.500 05/01/08 295
1,985 Knology, Inc., 144A--Private Placement (a) (h) 12.000 11/30/09 1,996,965
1,000 Park N View, Inc., Ser B (e) (f) (g) 13.000 05/15/08 -0-
3,315 Primus Telecom Group,
144A--Private Placement (a) 8.000 01/15/14 3,182,400
1,575 Qwest Communications International, Inc.,
144A--Private Placement
(Variable Rate Coupon) (a) 4.630 02/15/09 1,480,500
2,295 Qwest Services Corp.,
144A--Private Placement (a) 13.000 12/15/07 2,650,725
355 US West Communications, Inc. 5.625 11/15/08 355,888
------------
9,666,773
------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
11
<Page>
VAN KAMPEN HIGH YIELD FUND
PORTFOLIO OF INVESTMENTS - MARCH 31, 2004 (CONTINUED)
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------------------------
TRANSPORTATION 3.4%
$1,495 Amsted Industries, Inc.,
144A--Private Placement (a) 10.250% 10/15/11 $ 1,696,825
2,185 Laidlaw International, Inc.,
144A--Private Placement (a) 10.750 06/15/11 2,458,125
2,155 Sonic Automotive, Inc. 8.625 08/15/13 2,348,950
2,115 Tenneco Automotive, Inc., Ser B 11.625 10/15/09 2,300,063
1,959 TRW Automotive, Inc. 9.375 02/15/13 2,262,645
------------
11,066,608
------------
UTILITY 8.7%
252 AES Corp. 9.375 09/15/10 275,940
183 AES Corp. 8.875 02/15/11 196,268
1,105 AES Corp. 7.750 03/01/14 1,111,906
1,585 AES Corp., 144A--Private Placement (a) 9.000 05/15/15 1,757,369
965 Allegheny Energy, Inc. 7.750 08/01/05 1,006,013
1,625 Calpine Corp. 8.625 08/15/10 1,202,500
1,265 Calpine Corp., 144A--Private Placement (a) 8.500 07/15/10 1,170,125
425 CMS Energy Corp. 7.500 01/15/09 438,813
1,350 CMS Energy Corp. 8.500 04/15/11 1,447,875
1,990 Dynegy Holdings, Inc. 6.875 04/01/11 1,741,250
1,480 Dynegy Holdings, Inc.,
144A--Private Placement (a) 9.875 07/15/10 1,616,900
470 IPALCO Enterprises, Inc. 8.625 11/14/11 531,100
1,555 Monongahela Power Co. 5.000 10/01/06 1,593,875
2,410 Nevada Power Co.,
144A--Private Placement (a) 9.000 08/15/13 2,717,275
330 Northwest Pipeline Corp. 8.125 03/01/10 366,300
2,735 Ormat Funding Corp.,
144A--Private Placement (a) 8.250 12/30/20 2,748,675
1,040 PG & E Corp., 144A--Private Placement (a) 6.875 07/15/08 1,140,100
470 PSEG Energy Holdings, Inc. 7.750 04/16/07 499,375
1,016 PSEG Energy Holdings, Inc. 8.625 02/15/08 1,102,360
665 Southern Natural Gas Co. 8.875 03/15/10 741,475
875 TNP Enterprises, Inc. 10.250 04/01/10 958,125
575 Transcontinental Gas Pipe Line Corp., Ser B 8.875 07/15/12 684,250
1,900 Williams Cos., Inc. 7.875 09/01/21 1,933,250
1,000 Williams Cos., Inc., Ser A
(Variable Rate Coupon) 6.750 01/15/06 1,047,500
------------
28,028,619
------------
WIRELESS COMMUNICATIONS 5.9%
1,815 American Tower Corp. 9.375 02/01/09 1,923,900
1,135 American Tower Corp.,
144A--Private Placement (a) 7.500 05/01/12 1,089,600
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
12
<Page>
VAN KAMPEN HIGH YIELD FUND
PORTFOLIO OF INVESTMENTS - MARCH 31, 2004 (CONTINUED)
<Table>
<Caption>
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------------------------
WIRELESS COMMUNICATIONS (CONTINUED)
$2,235 Centennial Communications,
144A--Private Placement (a) 8.125% 02/01/14 $ 2,072,963
1,835 Metro PCS, Inc. 10.750 10/01/11 1,954,275
3,955 Nextel Communications, Inc. 9.375 11/15/09 4,320,838
385 Nextel Communications, Inc. 7.375 08/01/15 418,688
1,585 Nextel Partners, Inc. 11.000 03/15/10 1,767,275
920 Rural Cellular Corp.,
144A--Private Placement (a) 5.610 03/15/10 936,100
2,102 SBA Communications Corp. 10.250 02/01/09 2,080,980
1,025 SBA Communications Corp.,
144A--Private Placement (a) (b) 0/14.000 12/15/11 725,188
560 Ubiquitel Operating Co. (b) 0/14.000 04/15/10 529,200
1,205 Ubiquitel Operating Co.,
144A--Private Placement (a) 9.875 03/01/11 1,180,900
------------
18,999,907
------------
TOTAL DOMESTIC CORPORATE BONDS 81.8% 264,446,674
------------
<Caption>
PAR
AMOUNT
IN LOCAL
CURRENCY
(000)
- -------------------------------------------------------------------------------------------------------------
FOREIGN BONDS AND DEBT SECURITIES 12.3%
BELGIUM 0.7%
1,135 Telenet Communications (EUR) 9.000 12/15/13 1,424,665
1,340 Telenet Group Holding NV,
144A--Private Placement (US $) (a) (b) 0/11.500 06/15/14 824,100
------------
2,248,765
------------
BRAZIL 0.1%
775 Multicanal Participacoes, Ser B (US $) (e) 12.625 06/18/04 507,625
------------
CANADA 3.9%
1,590 Abitibi-Consolidated, Inc. (US $) 6.000 06/20/13 1,492,531
1,730 Alliance Atlantis Communications, Inc. (US $) 13.000 12/15/09 1,946,250
2,553 Hollinger Participation,
144A--Private Placement (US $) (a) (h) 12.125 11/15/10 2,957,930
1,200 Husky Oil Ltd. (US $) 8.900 08/15/28 1,419,882
915 Norampac, Inc. (US $) 6.750 06/01/13 974,475
1,190 Nortel Networks (US $) 6.125 02/15/06 1,225,700
500 Tembec Industries, Inc. (US $) 8.500 02/01/11 502,500
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
13
<Page>
VAN KAMPEN HIGH YIELD FUND
PORTFOLIO OF INVESTMENTS - MARCH 31, 2004 (CONTINUED)
<Table>
<Caption>
PAR
AMOUNT
IN LOCAL
CURRENCY
(000) DESCRIPTION COUPON MATURITY VALUE
- -------------------------------------------------------------------------------------------------------------
CANADA (CONTINUED)
2,165 Tembec Industries, Inc. (US $) 7.750% 03/15/12 $ 2,100,050
2,750 Worldwide Fiber, Inc. (US $) (e) (f) (g) 12.000 08/01/09 275
------------
12,619,593
------------
COLUMBIA 0.3%
727 Republic of Columbia (US $) 9.750 04/09/11 853,013
------------
FRANCE 1.2%
1,905 Rhodia SA, 144A--Private Placement (US $) (a) 8.875 06/01/11 1,600,200
685 Vivendi Universal SA (US $) 6.250 07/15/08 743,225
1,235 Vivendi Universal SA (US $) 9.250 04/15/10 1,482,000
------------
3,825,425
------------
GUERNSEY 0.4%
885 ABB International Finance Ltd. (EUR) 11.000 01/15/08 1,283,080
------------
IRELAND 0.1%
270 MDP Acquisitions PLC (US $) 9.625 10/01/12 306,450
------------
LUXEMBOURG 0.9%
1,840 Safilo Capital International SA,
144A--Private Placement (EUR) (a) 9.625 05/15/13 1,947,301
880 SGL Carbon Luxembourg SA,
144A--Private Placement (EUR) (a) 8.500 02/01/12 1,104,586
------------
3,051,887
------------
MEXICO 2.1%
2,335 Axtel SA, 144A--Private Placement (US $) (a) 11.000 12/15/13 2,381,700
3,283 Satelites Mexicanos SA, Ser B (US $) (e) 10.125 11/01/04 1,231,125
3,068 TV Axteca SA, Ser B (US $) 10.500 02/15/07 3,175,380
------------
6,788,205
------------
UNITED KINGDOM 2.6%
1,615 Avecia Group PLC (US $) 11.000 07/01/09 1,380,825
960 Dunlop Stand Aero Holdings,
144A--Private Placement (US $) (a) 11.875 05/15/09 1,027,200
1,910 JSG Funding PLC (EUR) 10.125 10/01/12 2,656,003
525 Xerox Capital Europe PLC (US $) 5.875 05/15/04 526,312
2,515 Xerox Corp. (US $) 7.125 06/15/10 2,678,475
------------
8,268,815
------------
TOTAL FOREIGN BONDS AND DEBT SECURITIES 12.3% 39,752,858
------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
14
<Page>
VAN KAMPEN HIGH YIELD FUND
PORTFOLIO OF INVESTMENTS - MARCH 31, 2004 (CONTINUED)
<Table>
<Caption>
DESCRIPTION VALUE
- -------------------------------------------------------------------------------------------------------------
EQUITIES 1.8%
Decisionone Corp. (2,671 common stock warrants Class A) (g) (i) $ -0-
Decisionone Corp. (4,603 common stock warrants Class B) (g) (i) -0-
Decisionone Corp. (2,730 common stock warrants Class C) (g) (i) -0-
Decisionone Corp. (5,234 common shares) (g) (i) -0-
Doe Run Resources Corp. (9 common stock warrants) (g) -0-
HCI Direct, Inc. (106,250 common shares) (g) (i) 828,750
Hosiery Corp. of America, Inc. (1,000 common shares) (g) -0-
Jazztel PLC (United Kingdom) (EUR) (1,550 common stock warrants) (g) (i) -0-
Mediq, Inc. (3,684 common shares) (g) (i) 14,773
Microcell Telecommunications (Canada) (94 common shares Class A) 1,805
Microcell Telecommunications (Canada) (11,249 common shares Class B) 214,291
Microcell Telecommunications (Canada) (11,317 convertible preferred shares) 217,527
Microcell Telecommunications (Canada) (4,178 common stock warrants) 19,070
Microcell Telecommunications (Canada) (6,964 common stock warrants) 37,146
Park N View, Inc., (1,000 common stock warrants)
144A--Private Placement (a) (f) (g) (i) -0-
Paxson Communications Corp. (25,900 preferred shares) (h) 2,337,475
Republic Technologies International, Inc.,
(4,275 common stock warrants Class D)
144A--Private Placement (a) (f) (g) (i) -0-
Startec Global Communications, (3,000 common stock warrants)
144A--Private Placement (a) (g) (i) -0-
TNP Enterprises, Inc. (19,101 preferred shares) (h) 2,182,315
Ventelo (United Kingdom) (EUR) (73,021 common shares)
144A--Private Placement (a) (g) (i) -0-
VS Holdings, Inc. (378,785 common shares) (g) (i) 70,719
------------
TOTAL EQUITIES 5,923,871
------------
TOTAL LONG-TERM INVESTMENTS 95.9%
(Cost $317,072,582) 310,123,403
------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
15
<Page>
VAN KAMPEN HIGH YIELD FUND
PORTFOLIO OF INVESTMENTS - MARCH 31, 2004 (CONTINUED)
<Table>
<Caption>
DESCRIPTION VALUE
- -------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT 2.3%
State Street Bank & Trust Co. ($7,473,000 par collateralized by
U.S. Government obligations in a pooled cash account,
interest rate of 1.00%, dated 03/31/04, to be sold on
04/01/04 at $7,473,208) (Cost $7,473,000) $ 7,473,000
------------
TOTAL INVESTMENTS 98.2%
(Cost $324,545,582) 317,596,403
OTHER ASSETS IN EXCESS OF LIABILITIES 1.8% 5,679,920
------------
NET ASSETS 100.0% $323,276,323
============
</Table>
(a) 144A securities are those which are exempt from registration under Rule 144A
of the Securities Act of 1933, as amended. These securities may only be
resold in transactions exempt from registration which are normally those
transactions with qualified institutional buyers.
(b) Security is a "step-up" bond where the coupon increases or steps up at a
predetermined date.
(c) This security is a United States company denominated in a foreign currency.
(d) Securities purchased on a when-issued or delayed delivery basis.
(e) Non-income producing as security is in default.
(f) This borrower has filed for protection in federal bankruptcy court.
(g) Market value is determined in accordance with procedures established in good
faith by the Board of Trustees.
(h) Payment-in-kind security.
(i) Non-income producing security.
(EUR)--Eurodollar
(US $)--United States Dollar
SEE NOTES TO FINANCIAL STATEMENTS
16
<Page>
VAN KAMPEN HIGH YIELD FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2004
<Table>
ASSETS:
Total Investments (Cost $324,545,582) $ 317,596,403
Cash 179,398
Receivables:
Interest 6,479,714
Investments Sold 3,705,723
Fund Shares Sold 552,464
Dividends 155,270
Forward Foreign Currency Contracts 338,071
Other 132,817
-------------
Total Assets 329,139,860
-------------
LIABILITIES:
Payables:
Investments Purchased 3,337,148
Fund Shares Repurchased 1,128,328
Income Distributions 595,720
Distributor and Affiliates 258,662
Investment Advisory Fee 178,093
Trustees' Deferred Compensation and Retirement Plans 191,778
Accrued Expenses 173,808
-------------
Total Liabilities 5,863,537
-------------
NET ASSETS $ 323,276,323
=============
NET ASSETS CONSIST OF:
Capital (Par value of $.01 per share with an unlimited number of
shares authorized) $ 495,456,109
Accumulated Undistributed Net Investment Income (2,739,992)
Net Unrealized Depreciation (6,612,343)
Accumulated Net Realized Loss (162,827,451)
-------------
NET ASSETS $ 323,276,323
=============
MAXIMUM OFFERING PRICE PER SHARE:
Class A Shares:
Net asset value and redemption price per share (Based on net assets of
$198,106,985 and 36,092,106 shares of beneficial interest issued
and outstanding) $ 5.49
Maximum sales charge (4.75%* of offering price) .27
-------------
Maximum offering price to public $ 5.76
=============
Class B Shares:
Net asset value and offering price per share (Based on net assets of
$94,806,218 and 17,184,315 shares of beneficial interest issued
and outstanding) $ 5.52
=============
Class C Shares:
Net asset value and offering price per share (Based on net assets of
$30,363,120 and 5,513,524 shares of beneficial interest issued
and outstanding) $ 5.51
=============
</Table>
* On sales of $100,000 or more, the sales charge will be reduced.
SEE NOTES TO FINANCIAL STATEMENTS
17
<Page>
VAN KAMPEN HIGH YIELD FUND
FINANCIAL STATEMENTS (CONTINUED)
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 2004
<Table>
INVESTMENT INCOME:
Interest $ 26,218,789
Dividends 949,117
Other 163,698
------------
Total Income 27,331,604
------------
EXPENSES:
Investment Advisory Fee 2,429,138
Distribution (12b-1) and Service Fees (Attributed to Classes A, B and C of
$496,503, $937,925 and $275,799, respectively) 1,710,227
Shareholder Services 507,303
Custody 63,177
Legal 30,454
Trustees' Fees and Related Expenses 27,857
Other 319,788
------------
Total Expenses 5,087,944
Investment Advisory Fee Reduction 323,885
Less Credits Earned on Cash Balances 3,410
------------
Net Expenses 4,760,649
------------
NET INVESTMENT INCOME $ 22,570,955
============
REALIZED AND UNREALIZED GAIN/LOSS:
Realized Gain/Loss:
Investments $(22,853,877)
Forward Foreign Currency Contracts (1,579,062)
Foreign Currency Transactions 859,612
------------
Net Realized Loss (23,573,327)
------------
Unrealized Appreciation/Depreciation:
Beginning of the Period (61,087,183)
End of the Period:
Investments (6,949,179)
Forward Foreign Currency Contracts 338,071
Foreign Currency Translation (1,235)
------------
(6,612,343)
------------
Net Unrealized Appreciation During the Period 54,474,840
------------
NET REALIZED AND UNREALIZED GAIN $ 30,901,513
============
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 53,472,468
============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
18
<Page>
VAN KAMPEN HIGH YIELD FUND
FINANCIAL STATEMENTS (CONTINUED)
STATEMENT OF CHANGES IN NET ASSETS
<Table>
<Caption>
FOR THE YEAR ENDED FOR THE YEAR ENDED
MARCH 31, 2004 MARCH 31, 2003
---------------------------------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income $ 22,570,955 $ 22,182,353
Net Realized Loss (23,573,327) (76,863,348)
Net Unrealized Appreciation During the Period 54,474,840 52,034,729
------------- -------------
Change in Net Assets from Operations 53,472,468 (2,646,266)
------------- -------------
Distributions from Net Investment Income:
Class A Shares (12,875,907) (16,005,559)
Class B Shares (5,354,545) (6,332,748)
Class C Shares (1,577,842) (1,457,021)
------------- -------------
(19,808,294) (23,795,328)
------------- -------------
Return of Capital Distribution:
Class A Shares (2,402,183) (2,820,791)
Class B Shares (982,849) (1,110,115)
Class C Shares (281,110) (256,344)
------------- -------------
(3,666,142) (4,187,250)
------------- -------------
Total Distributions (23,474,436) (27,982,578)
------------- -------------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES 29,998,032 (30,628,844)
------------- -------------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold 220,673,471 288,184,693
Net Asset Value of Shares Issued Through
Dividend Reinvestment 15,034,419 15,920,667
Cost of Shares Repurchased (232,820,728) (256,822,526)
------------- -------------
NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS 2,887,162 47,282,834
------------- -------------
TOTAL INCREASE IN NET ASSETS 32,885,194 16,653,990
NET ASSETS:
Beginning of the Period 290,391,129 273,737,139
------------- -------------
End of the Period (Including accumulated undistributed
net investment income of ($2,739,992) and
($6,392,558), respectively) $ 323,276,323 $ 290,391,129
============= =============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
19
<Page>
VAN KAMPEN HIGH YIELD FUND
FINANCIAL HIGHLIGHTS
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE SHARE OF THE FUND
OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
<Table>
<Caption>
YEAR ENDED MARCH 31,
--------------------------------------------------
CLASS A SHARES 2004 2003 2002 (c) 2001 2000
--------------------------------------------------
NET ASSET VALUE, BEGINNING OF THE PERIOD $ 5.00 $ 5.69 $ 7.18 $ 8.48 $ 9.03
------- ------- -------- ------- -------
Net Investment Income .37 .48 .69 .94 .85
Net Realized and Unrealized Gain/Loss .52 (.60) (1.38) (1.40) (.56)
------- ------- -------- ------- -------
Total from Investment Operations .89 (.12) (.69) (.46) .29
------- ------- -------- ------- -------
Less:
Distributions from
Net Investment Income .34 .49 .77 .84 .83
Return of Capital Distributions .06 .08 .03 -0- .01
------- ------- -------- ------- -------
Total Distributions .40 .57 .80 .84 .84
------- ------- -------- ------- -------
NET ASSET VALUE, END OF THE PERIOD $ 5.49 $ 5.00 $ 5.69 $ 7.18 $ 8.48
======= ======= ======== ======= =======
Total Return* (a) 18.35% -1.62% -10.05% -5.64% 3.50%
Net Assets at End of the Period
(In millions) $ 198.1 $ 191.0 $ 177.2 $ 205.8 $ 230.6
Ratio of Expenses to Average
Net Assets* (b) 1.19% 1.21% 1.22% 1.17% 1.15%
Ratio of Net Investment Income to Average
Net Assets* 7.25% 8.94% 10.90% 12.00% 9.96%
Portfolio Turnover 104% 101% 78% 85% 109%
</Table>
* If certain expenses had not been voluntarily assumed by Van Kampen, total
return would have been lower and the ratios would have been as follows:
<Table>
Ratio of Expenses to Average Net Assets 1.29% 1.31% 1.32% 1.27% 1.25%
Ratio of Net Investment Income to
Average Net Assets 7.15% 8.84% 10.80% 11.90% 9.86%
</Table>
(a) 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 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 .25% and do not
reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption of Fund shares.
(b) The Ratio of Expenses to Average Net Assets does not reflect credits earned
on cash balances. If these credits were reflected as a reduction of expense,
the ratio would decrease by .01% for the period ended March 31, 2001.
(c) As required, effective April 1, 2001, the Fund has adopted the provisions of
the AICPA Audit and Accounting Guide for Investment Companies and began
amortizing premium on fixed income securities. The effect of this change for
the year ended March 31, 2002 was to decrease net investment income per
share by $.01, increase net realized and unrealized gains and losses per
share by $.01 and decrease the Ratio of Net Investment Income to Average Net
Assets by .09%. Per share, ratios and supplemental data for periods prior to
March 31, 2002 have not been restated to reflect this change in
presentation.
SEE NOTES TO FINANCIAL STATEMENTS
20
<Page>
VAN KAMPEN HIGH YIELD FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE SHARE OF THE FUND
OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
<Table>
<Caption>
YEAR ENDED MARCH 31,
--------------------------------------------------
CLASS B SHARES 2004 2003 2002 (c) 2001 2000
--------------------------------------------------
NET ASSET VALUE, BEGINNING OF THE PERIOD $ 5.02 $ 5.71 $ 7.20 $ 8.49 $ 9.03
------- ------- -------- ------- ------
Net Investment Income .34 .43 .63 .87 .80
Net Realized and Unrealized Gain/Loss .52 (.59) (1.38) (1.39) (.58)
------- ------- -------- ------- ------
Total from Investment Operations .86 (.16) (.75) (.52) .22
------- ------- -------- ------- ------
Less:
Distributions from Net
Investment Income .30 .45 .72 .77 .75
Return of Capital Distributions .06 .08 .02 -0- .01
------- ------- -------- ------- ------
Total Distributions .36 .53 .74 .77 .76
------- ------- -------- ------- ------
NET ASSET VALUE, END OF THE PERIOD $ 5.52 $ 5.02 $ 5.71 $ 7.20 $ 8.49
======= ======= ======== ======= ======
Total Return* (a) 17.62% -2.37% -10.70% -6.39% 2.65%
Net Assets at End of the Period
(In millions) $ 94.8 $ 79.6 $ 78.8 $ 92.5 $109.2
Ratio of Expenses to Average
Net Assets* (b) 1.94% 1.96% 1.98% 1.92% 1.93%
Ratio of Net Investment Income to Average
Net Assets* 6.50% 8.23% 10.13% 11.22% 9.17%
Portfolio Turnover 104% 101% 78% 85% 109%
</Table>
* If certain expenses had not been voluntarily assumed by Van Kampen, total
return would have been lower and the ratios would have been as follows:
<Table>
Ratio of Expenses to Average Net Assets 2.04% 2.06% 2.08% 2.02% 2.03%
Ratio of Net Investment Income to Average
Net Assets 6.40% 8.13% 10.03% 11.12% 9.07%
</Table>
(a) 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 one year of purchase and declining to 0% after the sixth year.
If the sales charge was included, total returns would be lower. These
returns include combined Rule 12b-1 fees and service fees of 1% and do not
reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption of Fund shares.
(b) The Ratio of Expenses to Average Net Assets does not reflect credits earned
on cash balances. If these credits were reflected as a reduction of
expenses, the ratio would decrease by .01% for the period ended March 31,
2001.
(c) As required, effective April 1, 2001, the Fund has adopted the provisions of
the AICPA Audit and Accounting Guide for Investment Companies and began
amortizing premium on fixed income securities. The effect of this change for
the year ended March 31, 2002 was to decrease net investment income per
share by $.01, increase net realized and unrealized gains and losses per
share by $.01 and decrease the Ratio of Net Investment Income to Average Net
Assets by .10%. Per share, ratios and supplemental data for periods prior to
March 31, 2002 have not been restated to reflect this change in
presentation.
SEE NOTES TO FINANCIAL STATEMENTS
21
<Page>
VAN KAMPEN HIGH YIELD FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE SHARE OF THE FUND
OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
<Table>
<Caption>
YEAR ENDED MARCH 31,
---------------------------------------------------
CLASS C SHARES 2004 2003 2002 (c) 2001 (d) 2000
---------------------------------------------------
NET ASSET VALUE, BEGINNING OF THE PERIOD $ 5.01 $ 5.70 $ 7.19 $ 8.47 $ 9.02
------- ------- -------- -------- ------
Net Investment Income .33 .44 .63 .87 .80
Net Realized and Unrealized Gain/Loss .53 (.60) (1.38) (1.38) (.58)
------- ------- -------- -------- ------
Total from Investment Operations .86 (.16) (.75) (.51) .22
------- ------- -------- -------- ------
Less:
Distributions from Net
Investment Income .30 .45 .71 .77 .76
Return of Capital Distributions .06 .08 .03 -0- .01
------- ------- -------- -------- ------
Total Distributions .36 .53 .74 .77 .77
------- ------- -------- -------- ------
NET ASSET VALUE, END OF THE PERIOD $ 5.51 $ 5.01 $ 5.70 $ 7.19 $ 8.47
======= ======= ======== ======== ======
Total Return* (a) 17.65% -2.38% -10.72% -6.40% 2.65%
Net Assets at End of the Period
(In millions) $ 30.4 $ 19.8 $ 17.7 $ 14.7 $ 13.0
Ratio of Expenses to Average
Net Assets* (b) 1.94% 1.97% 1.97% 1.92% 1.93%
Ratio of Net Investment Income to Average
Net Assets* 6.49% 8.23% 10.10% 11.19% 9.17%
Portfolio Turnover 104% 101% 78% 85% 109%
</Table>
* If certain expenses had not been voluntarily assumed by Van Kampen, total
return would have been lower and the ratios would have been as follows:
<Table>
Ratio of Expenses to Average Net Assets 2.04% 2.07% 2.07% 2.02% 2.03%
Ratio of Net Investment Income to Average
Net Assets 6.39% 8.13% 10.00% 11.09% 9.07%
</Table>
(a) 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 1% and do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund
shares.
(b) The Ratio of Expenses to Average Net Assets does not reflect credits earned
on cash balances. If these credits were reflected as a reduction of
expenses, the ratio would decrease by .01% for the period ended March 31,
2001.
(c) As required, effective April 1, 2001, the Fund has adopted the provisions of
the AICPA Audit and Accounting Guide for Investment Companies and began
amortizing premium on fixed income securities. The effect of this change for
the year ended March 31, 2002 was to decrease net investment income per
share by $.01, increase net realized and unrealized gains and losses per
share by $.01 and decrease the Ratio of Net Investment Income to Average Net
Assets by .09%. Per share, ratios and supplemental data for periods prior to
March 31, 2002 have not been restated to reflect this change in
presentation.
(d) Based on average shares outstanding.
SEE NOTES TO FINANCIAL STATEMENTS
22
<Page>
VAN KAMPEN HIGH YIELD FUND
NOTES TO FINANCIAL STATEMENTS - MARCH 31, 2004
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen High Yield Fund (the "Fund") is organized as a series of Van Kampen
Trust, a Delaware statutory trust (the "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 a high level of current income. As a secondary
investment objective, the Fund seeks capital appreciation. The Fund invests
primarily in a portfolio of medium and lower grade domestic corporate debt
securities. The Fund also may invest up to 35% of its assets in foreign
government and corporate debt securities of similar quality. The Fund commenced
investment operations on June 27, 1986. The Fund commenced distribution of its
Class B and C Shares on May 17, 1993 and August 13, 1993, respectively.
Effective November 30, 2003, the Fund's investment adviser, Van Kampen
Investment Advisory Corp. merged into its affiliate, Van Kampen Asset
Management.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
A. SECURITY VALUATION Investments are stated at value using market quotations or
indications of value obtained from an independent pricing service. For those
securities where quotations or prices are not available, valuations are obtained
from yield data relating to instruments or securities with similar
characteristics in accordance with procedures established in good faith by the
Board of Trustees. Forward foreign currency contracts are valued using quoted
foreign exchange rates. 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 purchase and sell securities on a "when-issued" or "delayed delivery"
basis, with settlement to occur at a later date. The value of the security so
purchased is subject to market fluctuations during this period. The Fund will
segregate assets with the custodian, having an aggregate value at least equal to
the amount of the when-issued or delayed delivery purchase commitments until
payment is made. At March 31, 2004, the Fund had $2,371,463 of when-issued or
delayed delivery purchase commitments.
The Fund may invest in repurchase agreements, which are short-term
investments whereby the Fund acquires ownership of a debt security and the
seller agrees to repurchase the security at a future time and specified price.
The Fund may invest independently in repurchase agreements, or transfer
uninvested cash balances into a pooled cash account along with other investment
companies advised by Van Kampen Asset Management (the "Adviser") or its
affiliates, the daily aggregate of which is invested in repurchase agreements.
Repurchase agreements are fully collateralized by the underlying debt security.
The Fund will make payment for such securities only upon physical delivery or
evidence of book entry transfer to the account of the custodian bank. The seller
is required to maintain the value of the underlying security at not less than
the repurchase proceeds due the Fund.
23
<Page>
VAN KAMPEN HIGH YIELD FUND
NOTES TO FINANCIAL STATEMENTS - MARCH 31, 2004 (CONTINUED)
C. INCOME AND EXPENSE Interest income is recorded on an accrual basis and
dividend income is recorded net of applicable withholding taxes on the
ex-dividend date. Bond premium is amortized and discount is accreted 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 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 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. Although the
Fund's fiscal year end is March 31, the Fund's tax year end is December 31.
The Fund intends to utilize provisions of the federal income tax laws which
allow it to carry a realized capital loss forward for eight years following the
year of the loss and offset such losses against any future realized capital
gains. At December 31, 2003, the Fund had an accumulated capital loss
carryforward for tax purposes of $158,798,316, which will expire between
December 31, 2006 and December 31, 2011.
At March 31, 2004, the cost and related gross unrealized appreciation and
depreciation are as follows:
<Table>
Cost of investments for tax purposes $325,443,111
------------
Gross tax unrealized appreciation $ 21,750,421
Gross tax unrealized depreciation $(29,597,129)
------------
Net tax unrealized depreciation on investments $ (7,846,708)
============
</Table>
E. DISTRIBUTION OF INCOME AND GAINS The Fund declares and pays monthly dividends
from net investment income. Net investment income for federal income tax
purposes includes gains and losses realized on foreign currency transactions.
These gains and losses are included as net realized gains and losses for
financial reporting purposes. Net realized gains, if any, are distributed
annually. Distributions from net realized gains for book purposes may include
short-term capital gains, which are included as ordinary income for tax
purposes.
The tax character of distributions paid during the years ended December 31,
2003 and 2002 was as follows:
<Table>
<Caption>
12/31/2003 12/31/2002
Distributions paid from:
Ordinary income $19,320,274 $26,728,627
Long-term capital gain -0- -0-
Return of Capital 4,978,336 4,046,957
----------- -----------
$24,298,610 $30,775,584
=========== ===========
</Table>
Due to inherent differences in the recognition of income, expenses and
realized gains/losses under accounting principles generally accepted in the
United States of America and federal income tax purposes, permanent differences
between book and tax basis reporting for the 2003 fiscal year have been
identified and appropriately reclassified on the Statement of Assets and
Liabilities.
24
<Page>
VAN KAMPEN HIGH YIELD FUND
NOTES TO FINANCIAL STATEMENTS - MARCH 31, 2004 (CONTINUED)
For the tax year ended December 31, 2003, permanent book and tax differences of
$4,978,336 relating to return of capital distributions were reclassified from
accumulated undistributed net investment income to capital. A permanent
difference of $3,655,578 relating to the capital loss carryforward that expired
during the tax year ended December 31, 2003, was reclassified from accumulated
net realized loss to capital. A permanent difference of $719,449 relating to the
recognition of net realized loss on foreign currency transactions was
reclassified from accumulated net realized loss to accumulated undistributed net
investment income. A permanent difference of $158,350 relating to fee income
received on tender offers was reclassified from accumulated undistributed net
investment income to accumulated net realized loss. A permanent difference of
$10,651 relating to the Fund's investment in other regulated investment
companies was reclassified from accumulated undistributed net investment income
to accumulated net realized loss. A permanent difference relating to the Fund's
investment in other regulated investment companies totaling $88 was reclassified
from accumulated undistributed net investment income to capital. Finally,
permanent differences of $444,771 relating to book to tax amortization
differences were reclassified from accumulated undistributed net investment
income to accumulated net realized loss.
Net realized gains or losses may differ for financial and tax reporting
purposes primarily as a result of the difference in the Fund's tax year end and
the deferral of losses related to wash sale transactions.
F. CURRENCY TRANSLATION Assets and liabilities denominated in foreign currencies
and commitments under forward currency contracts are translated into U.S.
dollars at the mean of the quoted bid and ask prices of such currencies against
the U.S. dollar. Purchases and sales of portfolio securities are translated at
the rate of exchange prevailing when such securities were acquired or sold.
Income and expenses are translated at rates prevailing when accrued.
G. EXPENSE REDUCTIONS During the year ended March 31, 2004, the Fund's custody
fee was reduced by $3,410 as a result of credits earned on cash balances.
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of the Fund's Investment Advisory Agreement, the Adviser 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 .75%
Over $500 million .65%
</Table>
For the year ended March 31, 2004, the Adviser waived approximately
$323,900 of its advisory fee. This represents .10% of its average net assets for
the period. This waiver is voluntary in nature and can be discontinued at any
time.
For the year ended March 31, 2004, the Fund recognized expenses of
approximately $11,100 representing legal services provided by Skadden, Arps,
Slate, Meagher & Flom LLP, counsel to the Fund, of which a trustee of the Fund
is an affiliated person.
Under separate Accounting and Legal Services agreements the Adviser
provides accounting and legal services to the Fund. The Adviser allocates the
cost of such services to each fund. For the year ended March 31, 2004, the Fund
recognized expenses of approximately $56,900, representing
25
<Page>
VAN KAMPEN HIGH YIELD FUND
NOTES TO FINANCIAL STATEMENTS - MARCH 31, 2004 (CONTINUED)
Van Kampen Investments Inc. or its affiliates' (collectively "Van Kampen") cost
of providing accounting and legal services to the Fund, which are reported as
part of "Other" and "Legal" expenses, respectively, 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 year ended March
31, 2004, the Fund recognized expenses of approximately $413,300 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
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 may be invested in the common shares of those funds selected by the
trustees. Investments in such funds of approximately $114,300 are included in
"Other" assets on the Statement of Assets and Liabilities at March 31, 2004.
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.
3. CAPITAL TRANSACTIONS
At March 31, 2004, capital aggregated $344,283,651, $118,261,564 and $32,910,894
for Class A, B, and C Shares, respectively. For the year ended March 31, 2004,
transactions were as follows:
<Table>
<Caption>
SHARES VALUE
Sales:
Class A 31,357,044 $ 164,961,333
Class B 6,511,463 34,526,948
Class C 3,991,094 21,185,190
----------- -------------
Total Sales 41,859,601 $ 220,673,471
=========== =============
Dividend Reinvestment:
Class A 1,856,076 $ 9,935,700
Class B 725,684 3,904,820
Class C 221,979 1,193,899
----------- -------------
Total Dividend Reinvestment 2,803,739 $ 15,034,419
=========== =============
Repurchases:
Class A (35,340,889) $(187,173,276)
Class B (5,908,809) (31,598,321)
Class C (2,645,167) (14,049,131)
----------- -------------
Total Repurchases (43,894,865) $(232,820,728)
=========== =============
</Table>
26
<Page>
VAN KAMPEN HIGH YIELD FUND
NOTES TO FINANCIAL STATEMENTS - MARCH 31, 2004 (CONTINUED)
At March 31, 2003, capital aggregated $361,850,897, $113,960,183 and
$25,391,869 for Class A, B, and C Shares, respectively. For the year ended March
31, 2003, transactions were as follows:
<Table>
<Caption>
SHARES VALUE
Sales:
Class A 49,085,334 $ 242,136,134
Class B 6,554,210 33,000,674
Class C 2,604,338 13,047,885
----------- -------------
Total Sales 58,243,882 $ 288,184,693
=========== =============
Dividend Reinvestment:
Class A 2,222,567 $ 11,052,890
Class B 803,902 4,017,200
Class C 170,575 850,577
----------- -------------
Total Dividend Reinvestment 3,197,044 $ 15,920,667
=========== =============
Repurchases:
Class A (44,232,268) $(220,091,027)
Class B (5,310,124) (26,941,815)
Class C (1,933,529) (9,789,684)
----------- -------------
Total Repurchases (51,475,921) $(256,822,526)
=========== =============
</Table>
Class B Shares purchased on or after June 1, 1996, and any dividend
reinvestment plan Class B Shares received thereon, automatically convert to
Class A Shares eight years after the end of the calendar month in which the
shares were purchased. Class B Shares purchased before June 1, 1996, and any
dividend reinvestment plan Class B Shares received thereon, automatically
convert to Class A Shares six years after the end of the calendar month in which
the shares were purchased. For the years ended March 31, 2004 and 2003, 485,384
and 689,004 Class B Shares converted to Class A Shares, and are shown in the
above tables as sales of Class A Shares and repurchases of Class B Shares. Class
C Shares purchased before January 1, 1997, and any dividend reinvestment plan
Class C Shares received thereon, automatically convert to Class A Shares ten
years after the end of the calendar month in which such shares were purchased.
Class C Shares purchased on or after January 1, 1997 do not possess a conversion
feature. For the years ended March 31, 2004 and 2003, no Class C Shares
converted to Class A Shares.
27
<Page>
VAN KAMPEN HIGH YIELD FUND
NOTES TO FINANCIAL STATEMENTS - MARCH 31, 2004 (CONTINUED)
Class B and C Shares are offered without a front end sales charge, but are
subject to a contingent deferred sales charge (CDSC). The CDSC will be imposed
on most redemptions made within six years of the purchase for Class B and one
year of the purchase for Class C as detailed in the following schedule.
<Table>
<Caption>
CONTINGENT DEFERRED
SALES CHARGE
AS A PERCENTAGE
OF DOLLAR AMOUNT
SUBJECT TO CHARGE
-------------------
YEAR OF REDEMPTION CLASS B CLASS C
First 4.00% 1.00%
Second 3.75% None
Third 3.50% None
Fourth 2.50% None
Fifth 1.50% None
Sixth 1.00% None
Seventh and Thereafter None None
</Table>
For the year ended March 31, 2004, Van Kampen, as Distributor for the Fund,
received commissions on sales of the Fund's Class A Shares of approximately
$108,100, and CDSC on redeemed shares of Classes B and C of approximately
$257,000. Sales charges do not represent expenses of the Fund.
4. INVESTMENT TRANSACTIONS
During the period, the cost of purchases and proceeds from sales of investments,
excluding short-term investments, were $332,428,044 and $317,843,148,
respectively.
5. 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 has a variety of reasons to use derivative instruments, such as to
attempt to protect the Fund against possible changes in the market value of its
portfolio and to manage the portfolio's effective yield, foreign currency
exposure, maturity and duration, or generate potential gain. All of the Fund's
portfolio holdings, including derivative instruments, are marked to market each
day with the change in value reflected in unrealized appreciation/depreciation.
Upon disposition, a realized gain or loss is recognized accordingly, except when
exercising a call option contract or taking delivery of a security underlying a
futures or forward contract. In these instances, the recognition of gain or loss
is postponed until the disposal of the security underlying the option, futures
or forward 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. FORWARD FOREIGN CURRENCY CONTRACTS These instruments are commitments to
purchase or sell a foreign currency at a future date at a negotiated forward
rate. The gain or loss arising from the difference between the original value of
the contract and the closing value of such contract is included as a component
of realized gain/loss on forwards.
28
<Page>
VAN KAMPEN HIGH YIELD FUND
NOTES TO FINANCIAL STATEMENTS - MARCH 31, 2004 (CONTINUED)
At March 31, 2004, the Fund has outstanding forward foreign currency
contracts as follows:
<Table>
<Caption>
UNREALIZED
CURRENT APPRECIATION/
VALUE DEPRECIATION
LONG CONTRACTS:
Euro Currency 620,000 expiring 04/26/04 $ 762,424 $(12,533)
Euro Currency 150,000 expiring 04/26/04 184,457 (4,753)
Euro Currency 150,000 expiring 04/26/04 184,457 (2,068)
--------
(19,354)
--------
SHORT CONTRACTS:
Euro Currency 4,940,000 expiring 04/26/04 6,074,795 184,186
Euro Currency 3,910,000 expiring 04/26/04 4,808,188 145,782
Euro Currency 440,000 expiring 04/26/04 541,075 13,325
Euro Currency 375,000 expiring 04/26/04 461,143 14,132
--------
357,425
--------
$338,071
========
</Table>
6. DISTRIBUTION AND SERVICE PLANS
With respect to its Class A Shares, Class B Shares and Class C Shares, the Fund
and its shareholders have adopted a distribution plan pursuant to Rule 12b-1
under the 1940 Act, as amended, and a service plan (collectively, the "Plans").
The Plans govern payments for: the distribution of the Fund's Class A Shares,
Class B Shares and Class C Shares; the provision of ongoing shareholder services
with respect to such classes of shares; and the maintenance of shareholder
accounts with respect to such classes of shares.
Annual fees under the Plans of up to .25% of Class A average daily net
assets and 1.00% each for Class B and Class C average daily net assets are
accrued daily. The annual fees for Class A Shares are paid quarterly and the
annual fees for Class C Shares are paid monthly. For Class B Shares, 75% of the
annual fees are paid monthly, while 25% of the annual fees are paid quarterly.
The amount of distribution expenses incurred by Van Kampen and not yet
reimbursed ("unreimbursed receivable") was approximately $1,296,800 and $34,200
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, any excess 12b-1 fees will be
refunded to the Fund on a quarterly basis.
Included in these fees for the year ended March 31, 2004, are payments
retained by Van Kampen of approximately $834,600 and payments made to Morgan
Stanley DW Inc., an affiliate of the Adviser, of approximately $74,700.
7. LEGAL MATTERS
The Adviser, certain affiliates of the Adviser, certain officers of such
affiliates and certain investment companies advised by the Adviser or its
affiliates, including the Fund, are named as defendants in a number of similar
class action complaints which were recently consolidated. This consolidated
action also names as defendants certain individual Trustees and Directors of the
named investment companies advised by affiliates of the Adviser; the complaint
does not, however, name the individual Trustees of any Van Kampen funds. The
consolidated amended complaint generally alleges that defendants violated their
statutory disclosure obligations and fiduciary duties by failing properly to
disclose (i) that the Adviser and certain affiliates of the
29
<Page>
VAN KAMPEN HIGH YIELD FUND
NOTES TO FINANCIAL STATEMENTS - MARCH 31, 2004 (CONTINUED)
Adviser allegedly offered economic incentives to brokers and others to recommend
the funds advised by the Adviser or its affiliates to investors rather than
funds managed by other companies, and (ii) that the funds advised by the Adviser
or its affiliates, including the Fund, allegedly paid excessive commissions to
brokers in return for their efforts to recommend these funds to investors. The
complaint seeks, among other things, unspecified compensatory damages,
rescissionary damages, fees and costs.
The Adviser, certain affiliates of the Adviser and certain investment
companies advised by the Adviser or its affiliates are also named as defendants
in a derivative suit which additionally names as defendants certain individual
Trustees of the Van Kampen funds; the funds, including the Fund, are also named
as nominal defendants. The complaint in the derivative action alleges that
defendants gave a proprietary sales force economic incentives to promote the
sale of proprietary mutual funds and that they improperly failed to disclose
these economic incentives. The complaint also alleges that the Van Kampen funds
paid excessive commissions to Morgan Stanley DW Inc. in connection with the
sales of the funds. The complaint seeks, among other things, the removal of the
current Trustees of the Van Kampen funds, rescission of the management contracts
for the Van Kampen funds, disgorgement of profits by Morgan Stanley and monetary
damages. This complaint will be coordinated with the consolidated complaint.
The defendants intend to move to dismiss these actions and otherwise
vigorously to defend them. While the Fund believes that it has meritorious
defenses, the ultimate outcome of these matters is not presently determinable at
this early stage of the litigation, and no provision has been made in the Fund's
financial statements for the effect, if any, of these matters.
8. FUND MERGER
On April 30, 2004, the Trustees of Van Kampen High Yield Fund ("Target Fund")
announced its intention to merge the Target Fund into the Van Kampen High Income
Corporate Bond Fund ("Acquiring Fund"). The Trustees of each of the funds have
approved in principal an agreement and plan of reorganization between the funds
providing for a transfer of assets and liabilities of the Target Fund to the
Acquiring Fund in exchange for shares of beneficial interest of the Acquiring
Fund (the "Reorganization"). The Reorganization is subject to the approval by
the shareholders of the Target Fund.
30
<Page>
VAN KAMPEN HIGH YIELD FUND
REPORT OF INDEPENDENT AUDITORS
To the Shareholders and Board of Trustees of Van Kampen High Yield Fund
We have audited the accompanying statement of assets and liabilities of Van
Kampen High Yield Fund (the "Fund"), including the portfolio of investments, as
of March 31, 2004, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the four years in
the period then ended. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits. The financial highlights of the Fund for the year ended March 31, 2000
were audited by other auditors whose report dated May 5, 2000 expressed an
unqualified opinion on those financial highlights.
We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
and financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of March 31, 2004, by correspondence with
the custodian and brokers or by other appropriate auditing procedures where
replies from brokers were not received. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of the
Van Kampen High Yield Fund at March 31, 2004, the results of its operations for
the year then ended, the changes in its net assets for each of the two years in
the period then ended, and the financial highlights for each of the four years
in the period then ended in conformity with accounting principles generally
accepted in the United States.
/s/ Ernst & Young LLP
Chicago, Illinois
May 5, 2004
31
<Page>
VAN KAMPEN HIGH YIELD FUND
TRUSTEE AND IMPORTANT ADDRESSES INFORMATION
BOARD OF TRUSTEES
DAVID C. ARCH
J. MILES BRANAGAN
JERRY D. CHOATE
ROD DAMMEYER
LINDA HUTTON HEAGY
R. CRAIG KENNEDY
HOWARD J KERR
MITCHELL M. MERIN *
JACK E. NELSON
RICHARD F. POWERS, III *
HUGO F. SONNENSCHEIN
WAYNE W. WHALEN* - Chairman
SUZANNE H. WOOLSEY
INVESTMENT ADVISOR
VAN KAMPEN ASSET MANAGEMENT
1221 Avenue of the Americas
New York, New York 10020
DISTRIBUTOR
VAN KAMPEN FUNDS, INC.
1221 Avenue of the Americas
New York, New York 10020
SHAREHOLDER SERVICING AGENT
VAN KAMPEN INVESTOR SERVICES INC.
P.O. Box 947
Jersey City, New Jersey 07303-0947
CUSTODIAN
STATE STREET BANK
AND TRUST COMPANY
225 W. Franklin Street
P.O. Box 1713
Boston, Massachusetts 02110
LEGAL COUNSEL
SKADDEN, ARPS, SLATE,
MEAGHER & FLOM LLP
333 West Wacker Drive
Chicago, Illinois 60606
INDEPENDENT AUDITORS
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.
32
<Page>
VAN KAMPEN HIGH YIELD FUND
TRUSTEE AND OFFICER INFORMATION
The business and affairs of the Fund are managed under the direction of the
Fund's Board of Trustees and the Fund's officers appointed by the Board of
Trustees. The tables below list the trustees and executive officers of the Fund
and their principal occupations during the last five years, other directorships
held by trustees and their affiliations, if any, with Van Kampen Investments
Inc. ("Van Kampen Investments"), Van Kampen Asset Management ("Asset Management"
or the "Adviser"), Van Kampen Funds Inc. (the "Distributor"), Van Kampen
Advisors Inc., Van Kampen Exchange Corp. and Van Kampen Investor Services Inc.
("Investor Services"). The term "Fund Complex" includes each of the investment
companies advised by the Adviser or its affiliates as of the date of this
Statement of Additional Information. Trustees serve until reaching their
retirement age or until their successors are duly elected and qualified.
Officers are annually elected by the trustees.
INDEPENDENT TRUSTEES:
<Table>
<Caption>
NUMBER OF
TERM OF FUNDS IN
OFFICE AND FUND
POSITION(S) LENGTH OF COMPLEX
NAME, AGE AND ADDRESS HELD WITH TIME PRINCIPAL OCCUPATION(S) OVERSEEN OTHER DIRECTORSHIPS
OF INDEPENDENT TRUSTEE FUND SERVED DURING PAST 5 YEARS BY TRUSTEE HELD BY TRUSTEE
David C. Arch (58) Trustee Trustee Chairman and Chief Executive 88 Trustee/Director/Managing
Blistex Inc. since 2003 Officer of Blistex Inc., a General Partner of funds
1800 Swift Drive consumer health care products in the Fund Complex.
Oak Brook, IL 60523 manufacturer. Former Director of
the World Presidents
Organization-Chicago Chapter.
Director of the Heartland
Alliance, a nonprofit organization
serving human needs based in
Chicago.
J. Miles Branagan (71) Trustee Trustee Private investor. Co-founder, and 86 Trustee/Director/Managing
1632 Morning Mountain Road since 1996 prior to August 1996, Chairman, General Partner of funds
Raleigh, NC 27614 Chief Executive Officer and in the Fund Complex.
President, MDT Corporation (now
known as Getinge/Castle, Inc., a
subsidiary of Getinge Industrier
AB), a company which develops,
manufactures, markets and services
medical and scientific equipment.
Jerry D. Choate (65) Trustee Trustee Prior to January 1999, Chairman 86 Trustee/Director/Managing
33971 Selva Road since 1999 and Chief Executive Officer of the General Partner of funds
Suite 130 Allstate Corporation ("Allstate") in the Fund Complex.
Dana Point, CA 92629 and Allstate Insurance Company. Director of Amgen Inc.,
Prior to January 1995, President a biotechnological
and Chief Executive Officer of company, and Director of
Allstate. Prior to August 1994, Valero Energy
various management positions at Corporation, an
Allstate. independent refining
company.
</Table>
33
<Page>
VAN KAMPEN HIGH YIELD FUND
TRUSTEE AND OFFICER INFORMATION CONTINUED
<Table>
<Caption>
NUMBER OF
TERM OF FUNDS IN
OFFICE AND FUND
POSITION(S) LENGTH OF COMPLEX
NAME, AGE AND ADDRESS HELD WITH TIME PRINCIPAL OCCUPATION(S) OVERSEEN OTHER DIRECTORSHIPS
OF INDEPENDENT TRUSTEE FUND SERVED DURING PAST 5 YEARS BY TRUSTEE HELD BY TRUSTEE
Rod Dammeyer (63) Trustee Trustee President of CAC, llc., a private 88 Trustee/Director/Managing
CAC, llc. since 2003 company offering capital General Partner of funds
4350 LaJolla Village Drive investment and management advisory in the Fund Complex.
Suite 980 services. Prior to July 2000, Director of Stericycle,
San Diego, CA 92122-6223 Managing Partner of Equity Group Inc., Ventana Medical
Corporate Investment (EGI), a Systems, Inc., GATX
company that makes private Corporation and Trustee
investments in other companies. of The Scripps Research
Institute and the
University of Chicago
Hospitals and Health
Systems. Prior to April
2004, Director of
TheraSense, Inc. Prior
to January 2004,
Director of TeleTech
Holdings Inc. and Arris
Group, Inc. Prior to May
2002, Director of
Peregrine Systems Inc.
Prior to February 2001,
Vice Chairman and
Director of Anixter
International, Inc. and
IMC Global Inc. Prior to
July 2000, Director of
Allied Riser
Communications Corp.,
Matria Healthcare Inc.,
Transmedia Networks,
Inc., CNA Surety, Corp.
and Grupo Azcarero
Mexico (GAM).
</Table>
34
<Page>
VAN KAMPEN HIGH YIELD FUND
TRUSTEE AND OFFICER INFORMATION CONTINUED
<Table>
<Caption>
NUMBER OF
TERM OF FUNDS IN
OFFICE AND FUND
POSITION(S) LENGTH OF COMPLEX
NAME, AGE AND ADDRESS HELD WITH TIME PRINCIPAL OCCUPATION(S) OVERSEEN OTHER DIRECTORSHIPS
OF INDEPENDENT TRUSTEE FUND SERVED DURING PAST 5 YEARS BY TRUSTEE HELD BY TRUSTEE
Linda Hutton Heagy (55) Trustee Trustee Managing Partner of Heidrick & 86 Trustee/Director/Managing
Heidrick & Struggles since 1996 Struggles, an executive search General Partner of funds
233 South Wacker Drive firm. Trustee on the University of in the Fund Complex.
Suite 7000 Chicago Hospitals Board, Vice
Chicago, IL 60606 Chair of the Board of the YMCA of
Metropolitan Chicago and a member
of the Women's Board of the
University of Chicago. Prior to
1997, Partner of Ray & Berndtson,
Inc., an executive recruiting
firm. Prior to 1996, Trustee of
The International House Board, a
fellowship and housing
organization for international
graduate students. Prior to 1995,
Executive Vice President of ABN
AMRO, N.A., a bank holding
company. Prior to 1992, Executive
Vice President of La Salle
National Bank.
R. Craig Kennedy (52) Trustee Trustee Director and President of the 86 Trustee/Director/Managing
11 DuPont Circle, N.W. since 1996 German Marshall Fund of the United General Partner of funds
Washington, D.C. 20016 States, an independent U.S. in the Fund Complex.
foundation created to deepen
understanding, promote
collaboration and stimulate
exchanges of practical experience
between Americans and Europeans.
Formerly, advisor to the Dennis
Trading Group Inc., a managed
futures and option company that
invests money for individuals and
institutions. Prior to 1992,
President and Chief Executive
Officer, Director and member of
the Investment Committee of the
Joyce Foundation, a private
foundation.
Howard J Kerr (68) Trustee Trustee Prior to 1998, President and Chief 88 Trustee/Director/Managing
736 North Western Avenue since 2003 Executive Officer of Pocklington General Partner of funds
P.O. Box 317 Corporation, Inc., an investment in the Fund Complex.
Lake Forest, IL 60045 holding company. Director of the Director of the Lake
Marrow Foundation. Forest Bank & Trust.
</Table>
35
<Page>
VAN KAMPEN HIGH YIELD FUND
TRUSTEE AND OFFICER INFORMATION CONTINUED
<Table>
<Caption>
NUMBER OF
TERM OF FUNDS IN
OFFICE AND FUND
POSITION(S) LENGTH OF COMPLEX
NAME, AGE AND ADDRESS HELD WITH TIME PRINCIPAL OCCUPATION(S) OVERSEEN OTHER DIRECTORSHIPS
OF INDEPENDENT TRUSTEE FUND SERVED DURING PAST 5 YEARS BY TRUSTEE HELD BY TRUSTEE
Jack E. Nelson (68) Trustee Trustee President of Nelson Investment 86 Trustee/Director/Managing
423 Country Club Drive since 1996 Planning Services, Inc., a General Partner of funds
Winter Park, FL 32789 financial planning company and in the Fund Complex.
registered investment adviser in
the State of Florida. President of
Nelson Ivest Brokerage Services
Inc., a member of the NASD,
Securities Investors Protection
Corp. and the Municipal Securities
Rulemaking Board. President of
Nelson Sales and Services
Corporation, a marketing and
services company to support
affiliated companies.
Hugo F. Sonnenschein (63) Trustee Trustee President Emeritus and Honorary 88 Trustee/Director/Managing
1126 E. 59th Street since 2003 Trustee of the University of General Partner of funds
Chicago, IL 60637 Chicago and the Adam Smith in the Fund Complex.
Distinguished Service Professor in Director of Winston
the Department of Economics at the Laboratories, Inc.
University of Chicago. Prior to
July 2000, President of the
University of Chicago. Trustee of
the University of Rochester and a
member of its investment
committee. Member of the National
Academy of Sciences, the American
Philosophical Society and a fellow
of the American Academy of Arts
and Sciences.
Suzanne H. Woolsey, P.H.D. (62) Trustee Trustee Previously Chief Communications 86 Trustee/Director/Managing
6808 Florida Street since 1999 Officer of the National Academy of General Partner of funds
Chevy Chase, MD 20815 Sciences/National Research in the Fund Complex.
Council, an independent, federally Director of Fluor Corp.,
chartered policy institution, from an engineering,
2001 to November 2003 and Chief procurement and
Operating Officer from 1993 to construction
2001. Director of the Institute organization, since
for Defense Analyses, a federally January 2004 and Director
funded research and development of Neurogen Corporation,
center, Director of the German a pharmaceutical company,
Marshall Fund of the United since January 1998.
States, Director of the Rocky
Mountain Institute and Trustee of
Colorado College. Prior to 1993,
Executive Director of the
Commission on Behavioral and
Social Sciences and Education at
the National Academy of
Sciences/National Research
Council. From 1980 through 1989,
Partner of Coopers & Lybrand.
</Table>
36
<Page>
VAN KAMPEN HIGH YIELD FUND
TRUSTEE AND OFFICER INFORMATION CONTINUED
INTERESTED TRUSTEES:*
<Table>
<Caption>
NUMBER OF
TERM OF FUNDS IN
OFFICE AND FUND
POSITION(S) LENGTH OF COMPLEX
NAME, AGE AND ADDRESS HELD WITH TIME PRINCIPAL OCCUPATION(S) OVERSEEN OTHER DIRECTORSHIPS
OF INDEPENDENT TRUSTEE FUND SERVED DURING PAST 5 YEARS BY TRUSTEE HELD BY TRUSTEE
Mitchell M. Merin* (50) Trustee, Trustee President and Chief Executive 86 Trustee/Director/Managing
1221 Avenue of the Americas President since Officer of funds in the Fund General Partner of funds
New York, NY 10020 and Chief 1999: Complex. Chairman, President, in the Fund Complex.
Executive President Chief Executive Officer and
Officer and Chief Director of the Adviser and Van
Executive Kampen Advisors Inc. since
Officer December 2002. Chairman, President
since 2002 and Chief Executive Officer of Van
Kampen Investments since December
2002. Director of Van Kampen
Investments since December 1999.
Chairman and Director of Van
Kampen Funds Inc. since December
2002. President, Director and
Chief Operating Officer of Morgan
Stanley Investment Management
since December 1998. President and
Director since April 1997 and
Chief Executive Officer since June
1998 of Morgan Stanley Investment
Advisors Inc. and Morgan Stanley
Services Company Inc. Chairman,
Chief Executive Officer and
Director of Morgan Stanley
Distributors Inc. since June 1998.
Chairman since June 1998, and
Director since January 1998 of
Morgan Stanley Trust. Director of
various Morgan Stanley
subsidiaries. President of the
Morgan Stanley Funds since May
1999. Previously Chief Executive
Officer of Van Kampen Funds Inc.
from December 2002 to July 2003,
Chief Strategic Officer of Morgan
Stanley Investment Advisors Inc.
and Morgan Stanley Services
Company Inc. and Executive Vice
President of Morgan Stanley
Distributors Inc. from April 1997
to June 1998. Chief Executive
Officer from September 2002 to
April 2003 and Vice President from
May 1997 to April 1999 of the
Morgan Stanley Funds.
</Table>
37
<Page>
VAN KAMPEN HIGH YIELD FUND
TRUSTEE AND OFFICER INFORMATION CONTINUED
<Table>
<Caption>
NUMBER OF
TERM OF FUNDS IN
OFFICE AND FUND
POSITION(S) LENGTH OF COMPLEX
NAME, AGE AND ADDRESS HELD WITH TIME PRINCIPAL OCCUPATION(S) OVERSEEN OTHER DIRECTORSHIPS
OF INDEPENDENT TRUSTEE FUND SERVED DURING PAST 5 YEARS BY TRUSTEE HELD BY TRUSTEE
Richard F. Powers, III* (58) Trustee Trustee Advisory Director of Morgan 88 Trustee/Director/Managing
1 Parkview Plaza since 1999 Stanley. Prior to December 2002, General Partner of funds
P.O. Box 5555 Chairman, Director, President, in the Fund Complex.
Oakbrook Terrace, IL 60181 Chief Executive Officer and
Managing Director of Van Kampen
Investments and its investment
advisory, distribution and other
subsidiaries. Prior to December
2002, President and Chief
Executive Officer of funds in the
Fund Complex. Prior to May 1998,
Executive Vice President and
Director of Marketing at Morgan
Stanley and Director of Dean
Witter, Discover & Co. and Dean
Witter Realty. Prior to 1996,
Director of Dean Witter Reynolds
Inc.
Wayne W. Whalen* (64) Trustee Trustee Partner in the law firm of 88 Trustee/Director/Managing
333 West Wacker Drive since 1996 Skadden, Arps, Slate, Meagher & General Partner of funds
Chicago, IL 60606 Flom LLP, legal counsel to funds in the Fund Complex.
in the Fund Complex.
</Table>
* Such trustee is an "interested person" (within the meaning of Section
2(a)(19) of the 1940 Act). Mr. Whalen is an interested person of certain
funds in the Fund Complex by reason of his firm currently acting as legal
counsel to such funds in the Fund Complex. Messrs. Merin and Powers are
interested persons of funds in the Fund Complex and the Adviser by reason of
their current or former positions with Morgan Stanley or its affiliates.
38
<Page>
VAN KAMPEN HIGH YIELD FUND
TRUSTEE AND OFFICER INFORMATION CONTINUED
OFFICERS:
<Table>
<Caption>
TERM OF
OFFICE AND
POSITION(S) LENGTH OF
NAME, AGE AND HELD WITH TIME PRINCIPAL OCCUPATION(S)
ADDRESS OF OFFICER FUND SERVED DURING PAST 5 YEARS
Stephen L. Boyd (63) Vice President Officer Chairman of Morgan Stanley Investment Management's Global Research
2800 Post Oak Blvd. since 1998 Steering Committee. Vice President of funds in the Fund Complex.
45th Floor Prior to March 2004, Managing Director of Global Research Investment
Houston, TX 77056 Management. Prior to December 2002, Chief Investment Officer of Van
Kampen Investments and President and Chief Operations Officer of the
Adviser and Van Kampen Advisors Inc. Prior to May 2002, Executive
Vice President and Chief Investment Officer of funds in the Fund
Complex. Prior to May 2001, Managing Director and Chief Investment
Officer of Van Kampen Investments, and Managing Director and
President of the Adviser and Van Kampen Advisors Inc. Prior to
December 2000, Executive Vice President and Chief Investment Officer
of Van Kampen Investments, and President and Chief Operating Officer
of the Adviser. Prior to April 2000, Executive Vice President and
Chief Investment Officer for Equity Investments of the Adviser. Prior
to October 1998, Vice President and Senior Portfolio Manager with AIM
Capital Management, Inc. Prior to February 1998, Senior Vice
President and Portfolio Manager of Van Kampen American Capital Asset
Management, Inc., Van Kampen American Capital Investment Advisory
Corp. and Van Kampen American Capital Management, Inc.
Stefanie V. Chang (37) Vice President Officer Executive Director of Morgan Stanley Investment Management. Vice
1221 Avenue of the Americas since 2003 President of funds in the Fund Complex.
New York, NY 10020
Joseph J. McAlinden (61) Executive Vice Officer Managing Director and Chief Investment Officer of Morgan Stanley
1221 Avenue of the Americas President and Chief since 2002 Investment Advisors Inc., Morgan Stanley Investment Management Inc.
New York, NY 10020 Investment Officer and Morgan Stanley Investments LP and Director of Morgan Stanley
Trust for over 5 years. Executive Vice President and Chief Investment
Officer of funds in the Fund Complex. Managing Director and Chief
Investment Officer of Van Kampen Investments, the Adviser and Van
Kampen Advisors Inc. since December 2002.
</Table>
39
<Page>
VAN KAMPEN HIGH YIELD FUND
TRUSTEE AND OFFICER INFORMATION CONTINUED
<Table>
<Caption>
TERM OF
OFFICE AND
POSITION(S) LENGTH OF
NAME, AGE AND HELD WITH TIME PRINCIPAL OCCUPATION(S)
ADDRESS OF OFFICER FUND SERVED DURING PAST 5 YEARS
John R. Reynoldson (50) Vice President Officer Executive Director and Portfolio Specialist of the Adviser and Van
1 Parkview Plaza since 2000 Kampen Advisors Inc. Vice President of funds in the Fund Complex.
P.O. Box 5555 Prior to July 2001, Principal and Co-head of the Fixed Income
Oakbrook Terrace, IL 60181 Department of the Adviser and Van Kampen Advisors Inc. Prior to
December 2000, Senior Vice President of the Adviser and Van Kampen
Advisors Inc. Prior to May 2000, Senior Vice President of the
investment grade taxable group for the Adviser. Prior to June 1999,
Senior Vice President of the government securities bond group for
Asset Management.
Ronald E. Robison (65) Executive Vice Officer Chief Executive Officer and Chairman of Investor Services. Executive
1221 Avenue of the Americas President and since 2003 Vice President and Principal Executive Officer of funds in the Fund
New York, NY 10020 Principal Executive Complex. Chief Global Operations Officer and Managing Director of
Officer Morgan Stanley Investment Management Inc. Managing Director of Morgan
Stanley. Managing Director and Director of Morgan Stanley Investment
Advisors Inc., Morgan Stanley Services Company Inc. and Morgan
Stanley Distributors Inc. Chief Executive Officer and Director of
Morgan Stanley Trust. Vice President of the Morgan Stanley Funds.
A. Thomas Smith III (47) Vice President and Officer Managing Director of Morgan Stanley, Managing Director and Director
1221 Avenue of the Americas Secretary since 1999 of Van Kampen Investments, Director of the Adviser, Van Kampen
New York, NY 10020 Advisors Inc., the Distributor, Investor Services and certain other
subsidiaries of Van Kampen Investments. Managing Director and General
Counsel-Mutual Funds of Morgan Stanley Investment Advisors, Inc. Vice
President and Secretary of funds in the Fund Complex. Prior to July
2001, Managing Director, General Counsel, Secretary and Director of
Van Kampen Investments, the Adviser, the Distributor, Investor
Services, and certain other subsidiaries of Van Kampen Investments.
Prior to December 2000, Executive Vice President, General Counsel,
Secretary and Director of Van Kampen Investments, the Adviser, Van
Kampen Advisors Inc., the Distributor, Investor Services and certain
other subsidiaries of Van Kampen Investments. Prior to January 1999,
Vice President and Associate General Counsel to New York Life
Insurance Company ("New York Life"), and prior to March 1997,
Associate General Counsel of New York Life. Prior to December 1993,
Assistant General Counsel of The Dreyfus Corporation. Prior to August
1991, Senior Associate, Willkie Farr & Gallagher. Prior to January
1989, Staff Attorney at the Securities and Exchange Commission,
Division of Investment Management, Office of Chief Counsel.
</Table>
40
<Page>
VAN KAMPEN HIGH YIELD FUND
TRUSTEE AND OFFICER INFORMATION CONTINUED
<Table>
<Caption>
TERM OF
OFFICE AND
POSITION(S) LENGTH OF
NAME, AGE AND HELD WITH TIME PRINCIPAL OCCUPATION(S)
ADDRESS OF OFFICER FUND SERVED DURING PAST 5 YEARS
John L. Sullivan (48) Vice President, Officer Director and Managing Director of Van Kampen Investments, the
1 Parkview Plaza Chief Financial since 1996 Adviser, Van Kampen Advisors Inc. and certain other subsidiaries of
P.O. Box 5555 Officer Van Kampen Investments. Vice President, Chief Financial Officer and
Oakbrook Terrace, IL 60181 and Treasurer Treasurer of funds in the Fund Complex. Head of Fund Accounting for
Morgan Stanley Investment Management. Prior to December 2002,
Executive Director of Van Kampen Investments, the Adviser and Van
Kampen Advisors Inc.
</Table>
41
<Page>
VAN KAMPEN
PRIVACY NOTICE
The Van Kampen companies and investment products* respect your right to privacy.
We also know that you expect us to conduct and process your business in an
accurate and efficient manner. To do so, we must collect and maintain certain
nonpublic personal information about you. This is information we collect from
you on applications or other forms, and from the transactions you conduct with
us, our affiliates, or third parties. We may also collect information you
provide when using our Web site, and text files (also known as "cookies") may be
placed on your computer to help us to recognize you and to facilitate
transactions you initiate. We do not disclose any nonpublic personal information
about you or any of our former customers to anyone, except as permitted by law.
For instance, so that we may continue to offer you Van Kampen investment
products and services that meet your investing needs, and to effect transactions
that you request or authorize, we may disclose the information we collect to
companies that perform services on our behalf, such as printers and mailers that
assist us in the distribution of investor materials. These companies will use
this information only for the services for which we hired them, and are not
permitted to use or share this information for any other purpose. To protect
your nonpublic personal information internally, we permit access to it only by
authorized employees, and maintain physical, electronic and procedural
safeguards to guard your nonpublic personal information.
* Includes VanKampen Investments Inc., Van Kampen Asset Management, Van Kampen
Advisors Inc., VanKampen Funds Inc., Van Kampen Investor Services Inc., Van
Kampen System Inc. and VanKampen Exchange Corp., as well as the many Van
Kampen mutual funds and Van Kampen unit investment trusts.
THE STATEMENT OF ADDITIONAL INFORMATION INCLUDES ADDITIONAL INFORMATION ABOUT
FUND TRUSTEES AND IS AVAILABLE, WITHOUT CHARGE, UPON REQUEST BY CALLING
(800) 847-2424.
Van Kampen Funds Inc.
1 Parkview Plaza, P.O. Box 5555
Oakbrook Terrace, IL 60181-5555
www.vankampen.com
[VAN KAMPEN INVESTMENTS LOGO]
GENERATIONS OF EXPERIENCE(SM)
Copyright (C) 2004 Van Kampen Funds Inc. All rights reserved.
Member NASD/SIPC. 42, 342, 542
HYF ANR 4/04 RN04-00364P-Y03/04
<Page>
Item 2. Code of Ethics.
(a) The Trust has adopted a code of ethics (the "Code of Ethics") that
applies to its principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the Trust or
a third party.
(b) No information need be disclosed pursuant to this paragraph.
(c) The Trust has not amended its Code of Ethics during the period covered
by the shareholder report presented in Item 1 hereto.
(d) The Trust has not granted a waiver or an implicit waiver from a
provision of its Code of Ethics.
(e) Not applicable.
(f)
(1) The Trust's Code of Ethics is attached hereto as Exhibit 10A.
(2) Not applicable.
(3) Not applicable.
Item 3. Audit Committee Financial Expert.
The Trust's Board of Trustees has determined that it has three "audit committee
financial experts" serving on its audit committee, each of whom are
"independent" Trustees : J. Miles Branagan, Jerry Choate and R. Craig Kennedy.
Under applicable securities laws, a person who is determined to be an audit
committee financial expert will not be deemed an "expert" for any purpose,
including without limitation for the purposes of Section 11 of the Securities
Act of 1933, as a result of being designated or identified as an audit committee
financial expert. The designation or identification of a person as an audit
committee financial expert does not impose on such person any duties,
obligations, or liabilities that are greater than the duties, obligations, and
liabilities imposed on such person as a member of the audit committee and Board
of Trustees in the absence of such designation or identification.
<Page>
Item 4. Principal Accountant Fees and Services.
(a)(b)(c)(d) and (g). Based on fees billed for the periods shown:
2004
<Table>
<Caption>
REGISTRANT COVERED ENTITIES(1)
AUDIT FEES $40,630 N/A
NON-AUDIT FEES
AUDIT-RELATED FEES $ 0 $ 93,000(2)
TAX FEES $ 1,370(3) $ 70,314(4)
ALL OTHER FEES $ 0 $292,760(5)
TOTAL NON-AUDIT FEES $ 1,370 $456,074
TOTAL $42,000 $456,074
</Table>
2003
<Table>
<Caption>
REGISTRANT COVERED ENTITIES(1)
AUDIT FEES $38,700 N/A
NON-AUDIT FEES
AUDIT-RELATED FEES $ 0 $ 98,000(2)
TAX FEES $ 1,300(3) $ 0
ALL OTHER FEES $ 0 $536,530(6)
TOTAL NON-AUDIT FEES $ 1,300 $634,530
TOTAL $40,000 $634,530
</Table>
N/A- Not applicable, as not required by Item 4.
(1) Covered Entities include the Adviser (excluding sub-advisors) and
any entity controlling, controlled by or under common control with
the Adviser that provides ongoing services to the Registrant.
(2) Audit-Related Fees represent assurance and related services
provided that are reasonably related to the performance of the
audit of the financial statements of the Covered Entities' and
funds advised by the Adviser or its affiliates, specifically
attestation services provided in connection with a SAS 70 Report.
(3) Tax Fees represent tax advice and compliance services provided in
connection with the review of the Registrant's tax.
(4) Tax Fees represent tax advice services provided to Covered
Entities, including research and identification of PFIC entities.
(5) All Other Fees represent attestation services provided in
connection with performance presentation standards.
(6) All Other Fees represent attestation services provided in
connection with performance presentation standards, general
industry education seminars provided, and a regulatory review
project performed.
<Page>
(e)(1) The audit committee's pre-approval policies and procedures are as
follows:
JOINT AUDIT COMMITTEE
AUDIT AND NON-AUDIT SERVICES
PRE-APPROVAL POLICY AND PROCEDURES
OF THE
VAN KAMPEN FUNDS
AS ADOPTED JULY 23, 2003(1)
1. STATEMENT OF PRINCIPLES
The Audit Committee of the Board is required to review and, in its sole
discretion, pre-approve all Covered Services to be provided by the Independent
Auditors to the Fund and Covered Entities in order to assure that services
performed by the Independent Auditors do not impair the auditor's independence
from the Fund.(2)
The SEC has issued rules specifying the types of services that an
independent auditor may not provide to its audit client, as well as the audit
committee's administration of the engagement of the independent auditor. The
SEC's rules establish two different approaches to pre-approving services, which
the SEC considers to be equally valid. Proposed services either: may be
pre-approved without consideration of specific case-by-case services by the
Audit Committee ("GENERAL PRE-APPROVAL"); or require the specific pre-approval
of the Audit Committee ("SPECIFIC PRE-APPROVAL"). The Audit Committee believes
that the combination of these two approaches in this Policy will result in an
effective and efficient procedure to pre-approve services performed by the
Independent Auditors. As set forth in this Policy, unless a type of service has
received general pre-approval, it will require specific pre-approval by the
Audit Committee (or by any member of the Audit Committee to which pre-approval
authority has been delegated) if it is to be provided by the Independent
Auditors. Any proposed services exceeding pre-approved cost levels or budgeted
amounts will also require specific pre-approval by the Audit Committee.
For both types of pre-approval, the Audit Committee will consider
whether such services are consistent with the SEC's rules on auditor
independence. The Audit Committee will also consider whether the Independent
Auditors are best positioned to provide the most effective and efficient
services, for reasons such as its familiarity with the Fund's business, people,
culture, accounting systems, risk profile and other factors, and whether the
service might enhance the Fund's ability to manage or control risk or improve
audit quality. All such factors will be considered as a whole, and no one factor
should necessarily be determinative.
The Audit Committee is also mindful of the relationship between fees for
audit and non-audit services in deciding whether to pre-approve any such
services and may determine for each fiscal year, the appropriate ratio between
the total amount of fees for Audit, Audit-related and Tax services for the Fund
(including any Audit-related or Tax service fees for Covered Entities that were
subject to pre-approval), and the total amount of fees for certain permissible
non-audit services classified as All Other services for the Fund (including any
such services for Covered Entities subject to pre-approval).
The appendices to this Policy describe the Audit, Audit-related, Tax and
All Other services that have the general pre-approval of the Audit Committee.
The term of any general pre-approval is 12 months from the date of pre-approval,
unless the Audit Committee considers and provides a different period and states
otherwise. The Audit Committee will annually review and pre-approve the services
that may be provided by the Independent Auditors without obtaining specific
pre-approval from the Audit Committee.
- ----------
(1) This Joint Audit Committee Audit and Non-Audit Services Pre-Approval
Policy and Procedures (the "POLICY"), adopted as of the date above, supercedes
and replaces all prior versions that may have been adopted from time to time.
(2) Terms used in this Policy and not otherwise defined herein shall have
the meanings as defined in the Joint Audit Committee Charter.
<Page>
The Audit Committee will add to or subtract from the list of general
pre-approved services from time to time, based on subsequent determinations.
The purpose of this Policy is to set forth the policy and procedures by
which the Audit Committee intends to fulfill its responsibilities. It does not
delegate the Audit Committee's responsibilities to pre-approve services
performed by the Independent Auditors to management.
The Fund's Independent Auditors have reviewed this Policy and believes
that implementation of the Policy will not adversely affect the Independent
Auditors' independence.
2. DELEGATION
As provided in the Act and the SEC's rules, the Audit Committee may
delegate either type of pre-approval authority to one or more of its members.
The member to whom such authority is delegated must report, for informational
purposes only, any pre-approval decisions to the Audit Committee at its next
scheduled meeting.
3. AUDIT SERVICES
The annual Audit services engagement terms and fees are subject to the
specific pre-approval of the Audit Committee. Audit services include the annual
financial statement audit and other procedures required to be performed by the
Independent Auditors to be able to form an opinion on the Fund's financial
statements. These other procedures include information systems and procedural
reviews and testing performed in order to understand and place reliance on the
systems of internal control, and consultations relating to the audit. The Audit
Committee will monitor the Audit services engagement as necessary, but no less
than on a quarterly basis, and will also approve, if necessary, any changes in
terms, conditions and fees resulting from changes in audit scope, Fund structure
or other items.
In addition to the annual Audit services engagement approved by the
Audit Committee, the Audit Committee may grant general pre-approval to other
Audit services, which are those services that only the Independent Auditors
reasonably can provide. Other Audit services may include statutory audits and
services associated with SEC registration statements (on Forms N-1A, N-2, N-3,
N-4, etc.), periodic reports and other documents filed with the SEC or other
documents issued in connection with securities offerings.
The Audit Committee has pre-approved the following Audit services. All
other Audit services not listed below must be specifically pre-approved by the
Audit Committee (or by any member of the Audit Committee to which pre-approval
has been delegated):
- Statutory audits or financial audits for the Fund
- Services associated with SEC registration statements (including new
funds), periodic reports and other documents filed with the SEC or other
documents issued in connection with securities offerings (e.g., comfort
letters for closed-end fund offerings, consents), and assistance in
responding to SEC comment letters
- Consultations by the Fund's management as to the accounting or
disclosure treatment of transactions or events and/or the actual or
potential impact of final or proposed rules, standards or
interpretations by the SEC, FASB, or other regulatory or standard
setting bodies (Note: Under SEC rules, some consultations may be "audit
related" services rather than "audit" services)
4. AUDIT-RELATED SERVICES
Audit-related services are assurance and related services that are
reasonably related to the performance of the audit or review of the Fund's
financial statements or, to the extent they are Covered Services, the Covered
Entities' financial statements, or that are traditionally performed by the
Independent Auditors. Because the Audit Committee believes that the provision of
Audit-related services does not impair the independence of the auditor and is
consistent with the SEC's rules on auditor independence, the Audit Committee may
grant general pre-approval to Audit-related services. Audit-related services
include,
<Page>
among others, accounting consultations related to accounting, financial
reporting or disclosure matters not classified as "Audit services"; assistance
with understanding and implementing new accounting and financial reporting
guidance from rulemaking authorities; agreed-upon or expanded audit procedures
related to accounting and/or billing records required to respond to or comply
with financial, accounting or regulatory reporting matters; and assistance with
internal control reporting requirements under Forms N-SAR and/or N-CSR.
The Audit Committee has pre-approved the following Audit-related
services. All other Audit-related services not listed below must be specifically
pre-approved by the Audit Committee (or by any member of the Audit Committee to
which pre-approval has been delegated):
- Attest procedures not required by statute or regulation (including
agreed upon procedures related to the Closed-End Fund asset coverage
tests required by the rating agencies and/or lenders)
- Due diligence services pertaining to potential fund mergers
- Issuance of SAS-70 reports on internal controls of Morgan Stanley Trust
Co. and MSIM Trade Operations
- Consultations by the Fund's management as to the accounting or
disclosure treatment of transactions or events and/or the actual or
potential impact of final or proposed rules, standards or
interpretations by the SEC, FASB, or other regulatory or
standard-setting bodies (Note: Under SEC rules, some consultations may
be "audit" services rather than "audit-related" services)
- Information systems reviews not performed in connection with the audit
(e.g., application data center and technical reviews)
- General assistance with implementation of the requirements of SEC rules
or listing standards promulgated pursuant to the Sarbanes-Oxley Act
- Audit of record keeping services performed by Morgan Stanley Trust Fund
related to the New Jersey State Retirement Plan
5. TAX SERVICES
The Audit Committee believes that the Independent Auditors can provide
Tax services to the Fund and, to the extent they are Covered Services, the
Covered Entities, such as tax compliance, tax planning and tax advice without
impairing the auditor's independence, and the SEC has stated that the
Independent Auditors may provide such services. Hence, the Audit Committee
believes it may grant general pre-approval to those Tax services that have
historically been provided by the Independent Auditors, that the Audit Committee
has reviewed and believes would not impair the independence of the Independent
Auditors, and that are consistent with the SEC's rules on auditor independence.
The Audit Committee will not permit the retention of the Independent Auditors in
connection with a transaction initially recommended by the Independent Auditors,
the sole business purpose of which may be tax avoidance and the tax treatment of
which may not be supported in the Internal Revenue Code and related regulations.
The Audit Committee will consult with Director of Tax or outside counsel to
determine that the tax planning and reporting positions are consistent with this
policy.
Pursuant to the preceding paragraph, the Audit Committee has
pre-approved the following Tax Services. All Tax services involving large and
complex transactions not listed below must be specifically pre-approved by the
Audit Committee (or by any member of the Audit Committee to which pre-approval
has been delegated), including tax services proposed to be provided by the
Independent Auditors to any executive officer or trustee/director/managing
general partner of the Fund, in his or her individual capacity, where such
services are paid for by the Fund (generally applicable only to internally
managed investment companies):
- U.S. federal, state and local tax planning and advice
- U.S. federal, state and local tax compliance
- International tax planning and advice
- International tax compliance
- Review of federal, state, local and international income, franchise, and
other tax returns
- Identification of Passive Foreign Investment Companies
- Review of closed-end funds pro rata allocation of taxable income and
capital gains to common and preferred shares.
<Page>
- Domestic and foreign tax planning, compliance, and advice
- Assistance with tax audits and appeals before the IRS and similar state,
local and foreign agencies
- Tax advice and assistance regarding statutory, regulatory or
administrative developments (e.g., excise tax reviews, evaluation of
Fund's tax compliance function)
- Review the calculations of taxable income from corporate actions
including reorganizations related to bankruptcy filings and provide
guidance related to the foregoing
6. ALL OTHER SERVICES
The Audit Committee believes, based on the SEC's rules prohibiting the
Independent Auditors from providing specific non-audit services, that other
types of non-audit services are permitted. Accordingly, the Audit Committee
believes it may grant general pre-approval to those permissible non-audit
services classified as All Other services that it believes are routine and
recurring services, would not impair the independence of the auditor and are
consistent with the SEC's rules on auditor independence.
The Audit Committee has pre-approved the following All Other services.
Permissible All Other services not listed below must be specifically
pre-approved by the Audit Committee (or by any member of the Audit Committee to
which pre-approval has been delegated):
- Risk management advisory services, e.g., assessment and testing of
security infrastructure controls
The following is a list of the SEC's prohibited non-audit services. The
SEC's rules and relevant guidance should be consulted to determine the precise
definitions of these services and the applicability of exceptions to certain of
the prohibitions:
- Bookkeeping or other services related to the accounting records or
financial statements of the audit client
- Financial information systems design and implementation
- Appraisal or valuation services, fairness opinions or
contribution-in-kind reports
- Actuarial services
- Internal audit outsourcing services
- Management functions
- Human resources
- Broker-dealer, investment adviser or investment banking services
- Legal services
- Expert services unrelated to the audit
7. PRE-APPROVAL FEE LEVELS OR BUDGETED AMOUNTS
Pre-approval fee levels or budgeted amounts for all services to be
provided by the Independent Auditors will be established annually by the Audit
Committee. Any proposed services exceeding these levels or amounts will require
specific pre-approval by the Audit Committee. The Audit Committee is mindful of
the overall relationship of fees for audit and non-audit services in determining
whether to pre-approve any such services. For each fiscal year, the Audit
Committee may determine the appropriate ratio between the total amount of fees
for Audit, Audit-related, and Tax services for the Fund (including any
Audit-related or Tax services fees for Covered Entities subject to
pre-approval), and the total amount of fees for certain permissible non-audit
services classified as All Other services for the Fund (including any such
services for Covered Entities subject to pre-approval).
8. PROCEDURES
All requests or applications for services to be provided by the
Independent Auditors that do not require specific approval by the Audit
Committee will be submitted to the Fund's Chief Financial Officer and must
include a detailed description of the services to be rendered. The Fund's Chief
Financial Officer will determine whether such services are included within the
list of services that have received the general pre-approval of the Audit
Committee. The Audit Committee will be informed on a timely basis of any such
<Page>
services rendered by the Independent Auditors. Requests or applications to
provide services that require specific approval by the Audit Committee will be
submitted to the Audit Committee by both the Independent Auditors and the Fund's
Chief Financial Officer, and must include a joint statement as to whether, in
their view, the request or application is consistent with the SEC's rules on
auditor independence.
The Audit Committee has designated the Fund's Chief Financial Officer to
monitor the performance of all services provided by the Independent Auditors and
to determine whether such services are in compliance with this Policy. The
Fund's Chief Financial Officer will report to the Audit Committee on a periodic
basis on the results of its monitoring. Both the Fund's Chief Financial Officer
and management will immediately report to the chairman of the Audit Committee
any breach of this Policy that comes to the attention of the Fund's Chief
Financial Officer or any member of management.
9. ADDITIONAL REQUIREMENTS
The Audit Committee has determined to take additional measures on an
annual basis to meet its responsibility to oversee the work of the Independent
Auditors and to assure the auditor's independence from the Fund, such as
reviewing a formal written statement from the Independent Auditors delineating
all relationships between the Independent Auditors and the Fund, consistent with
Independence Standards Board No. 1, and discussing with the Independent Auditors
its methods and procedures for ensuring independence.
10. COVERED ENTITIES
Covered Entities include the Fund's investment adviser(s) and any entity
controlling, controlled by or under common control with the Fund's investment
adviser(s) that provides ongoing services to the Fund(s). Beginning with
non-audit service contracts entered into on or after May 6, 2003, the Fund's
audit committee must pre-approve non-audit services provided not only to the
Fund but also to the Covered Entities if the engagements relate directly to the
operations and financial reporting of the Fund. This list of Covered Entities
would include:
- Van Kampen Investments, Inc.
- Van Kampen Investment Advisory Corporation
- Van Kampen Asset Management Inc.
- Van Kampen Advisors Inc.
- Van Kampen Funds Inc.
- Van Kampen Trust Company
- Van Kampen Investor Services Inc.
- Van Kampen Management Inc.
- Morgan Stanley Investment Management Inc.
- Morgan Stanley Investments LP
- Morgan Stanley Trust Company
(e)(2) Beginning with non-audit service contracts entered into on or after May
6, 2003, the audit committee also is required to pre-approve services to Covered
Entities to the extent that the services are determined to have a direct impact
on the operations or financial reporting of the Registrant. 100% of such
services were pre-approved by the audit committee pursuant to the Audit
Committee's pre-approval policies and procedures (attached hereto).
(f) Not applicable.
(g) See table above.
<Page>
(h) The audit committee of the Board of Trustees has considered whether the
provision of services other than audit services performed by the auditors to the
Registrant and Covered Entities is compatible with maintaining the auditors'
independence in performing audit services.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. [Reserved.]
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
Item 8. [Reserved.]
<Page>
Item 9. Controls and Procedures
(a) The Trust's principal executive officer and principal financial officer have
concluded that the Trust's disclosure controls and procedures are sufficient to
ensure that information required to be disclosed by the Trust in this Form N-CSR
was recorded, processed, summarized and reported within the time periods
specified in the Securities and Exchange Commission's rules and forms, based
upon such officers' evaluation of these controls and procedures as of a date
within 90 days of the filing date of the report.
(b) There were no changes in the registrant's internal control over financial
reporting that occurred during the registrant's most recent fiscal half-year
(the registrant's second fiscal half-year in the case of an annual report) that
has materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
Item 10. Exhibits.
(a) The Code of Ethics for Principal Executive and Senior Financial Officers is
attached hereto.
(b)(1) A certification for the Principal Executive Officer of the registrant is
attached hereto as part of EX-99.CERT.
(b)(2) A certification for the Principal Financial Officer of the registrant is
attached hereto as part of EX-99.CERT.
<Page>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) VAN KAMPEN TRUST
By: /s/ Ronald E. Robison
----------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: May 18, 2004
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: May 18, 2004
By: /s/ John L. Sullivan
---------------------
Name: John L. Sullivan
Title: Principal Financial Officer
Date: May 18, 2004