UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-6362
Van Kampen Municipal 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
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(Name and address of agent for service)
Registrant's telephone number, including area code: 212-762-4000
Date of fiscal year end: 10/31
Date of reporting period: 4/30/06
Item 1. Report to Shareholders
The Trust's semiannual report transmitted to shareholders pursuant to Rule 30e-1
under the Investment Company Act of 1940 is as follows:
Welcome, Shareholder
In this report, you'll learn about how your investment in Van Kampen
Municipal Trust performed during the semiannual period. The portfolio
management team will provide an overview of the market conditions and
discuss some of the factors that affected investment performance during
the reporting period. In addition, this report includes the trust's
financial statements and a list of trust investments as of April 30,
2006.
MARKET FORECASTS PROVIDED IN THIS REPORT MAY NOT NECESSARILY COME TO
PASS. THERE IS NO ASSURANCE THAT THE TRUST WILL ACHIEVE ITS INVESTMENT
OBJECTIVE. TRUSTS ARE SUBJECT TO MARKET RISK, WHICH IS THE POSSIBILITY
THAT THE MARKET VALUES OF SECURITIES OWNED BY THE TRUST WILL DECLINE AND
THAT THE VALUE OF TRUST SHARES MAY THEREFORE BE LESS THAN WHAT YOU PAID
FOR THEM. ACCORDINGLY, YOU CAN LOSE MONEY INVESTING IN THIS TRUST.
INCOME MAY SUBJECT CERTAIN INDIVIDUALS TO THE FEDERAL ALTERNATIVE MINIMUM
TAX (AMT).
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NOT FDIC INSURED OFFER NO BANK GUARANTEE MAY LOSE VALUE
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NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY NOT A DEPOSIT
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Performance Summary as of 4/30/06
MUNICIPAL TRUST
SYMBOL: VKQ
------------------------------------------------------------
AVERAGE ANNUAL BASED ON BASED ON
TOTAL RETURNS NAV MARKET PRICE
Since Inception (9/27/91) 7.41% 6.69%
10-year 6.99 7.41
5-year 7.69 7.95
1-year 3.36 9.26
6-month 2.51 7.11
------------------------------------------------------------
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NO GUARANTEE OF
FUTURE RESULTS, AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE FIGURES
SHOWN. FOR THE MOST RECENT MONTH-END PERFORMANCE FIGURES, PLEASE VISIT
VANKAMPEN.COM OR SPEAK WITH YOUR FINANCIAL ADVISOR. INVESTMENT RETURNS, NET
ASSET VALUE (NAV) AND COMMON SHARE MARKET PRICE WILL FLUCTUATE AND TRUST SHARES,
WHEN SOLD, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
NAV per share is determined by dividing the value of the trust's portfolio
securities, cash and other assets, less all liabilities and preferred shares, by
the total number of common shares outstanding. The common share market price is
the price the market is willing to pay for shares of the trust at a given time.
Common share market price is influenced by a range of factors, including supply
and demand and market conditions. Total return assumes an investment at the
beginning of the period, reinvestment of all distributions for the period in
accordance with the trust's dividend reinvestment plan, and sale of all shares
at the end of the period.
The Lehman Brothers Municipal Bond Index is a broad-based statistical composite
of municipal bonds. The index does not include any expenses, fees or sales
charges, which would lower performance. The index is unmanaged and should not be
considered an investment. It is not possible to invest directly in an index.
1
Trust Report
FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2006
MARKET CONDITIONS
The economy continued to grow during the six-month period ended April 30, 2006,
demonstrating some resiliency in the face of rising oil and other commodity
prices, the Gulf Coast hurricanes, and emerging weakness in the housing market.
This expansion was more modest in the final months of 2005, but gained
considerable momentum in the first quarter.
Against the backdrop of growth and good employment data, the Federal Open Market
Committee (the "Fed") continued raising the federal funds target rate during the
period, implementing four additional increases of 25 basis points each. These
moves brought the target rate to 4.75 percent. The final hike of the period
represented the fifteenth consecutive increase--the longest stretch of increases
in 25 years. As the period came to a close, market observers speculated about
the Fed's near-term intentions, given the central bank's view that although
longer-term inflation currently appeared contained, commodity prices could
amplify inflationary pressures.
Returns across the municipal bond market varied significantly. As investors
sought income opportunities, lower rated bonds outpaced investment-grade bonds
by a wide margin. Long-term bonds earned the best returns, broadly speaking,
while bonds in the three-to-seven year range posted the most muted gains.
Municipal bond issuance was robust during the final months of 2005. (In fact,
2005 marked a record high for municipal bond volume.) The tide changed in 2006,
however. As rising rates discouraged issuers from refinancing debt, national
municipal issuance dropped by approximately 25 percent in the first four months
of the year versus the same period in 2005. While supply ebbed, the market's
appetite for municipal bonds remained strong, with particularly heavy demand
from high yield municipal bond funds.
2
PERFORMANCE ANALYSIS
The trust's return can be calculated based upon either the market price or the
net asset value (NAV) of its shares. NAV per share is determined by dividing the
value of the trust's portfolio securities, cash and other assets, less all
liabilities and preferred shares, by the total number of common shares
outstanding, while market price reflects the supply and demand for the shares.
As a result, the two returns can differ, as they did during the reporting
period. On both an NAV basis and a market price basis, the trust outperformed
its benchmark index, the Lehman Brothers Municipal Bond Index.
TOTAL RETURNS FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2006
----------------------------------------------------------
BASED ON BASED ON LEHMAN BROTHERS
NAV MARKET PRICE MUNICIPAL BOND INDEX
2.51% 7.11% 1.56%
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Performance data quoted represents past performance, which is no guarantee of
future results, and current performance may be lower or higher than the figures
shown. Investment return, net asset value and common share market price will
fluctuate and trust shares, when sold, may be worth more or less than their
original cost. See Performance Summary for additional performance information
and index definition.
The trust uses leverage to enhance its dividend to common shareholders. The
trust borrows money at short-term rates through the issuance of preferred
shares. The proceeds are reinvested in longer-term securities, taking advantage
of the difference between short- and longer-term rates. The Fed's policy of
raising interest rates throughout the period made the trust's borrowing activity
more expensive, which reduced the benefits of the trust's leverage activities.
We managed the trust according to our well-established "relative value"
discipline. We used rigorous fundamental research to seek high quality
securities with good liquidity and total return potential. (Liquid securities
are those for which there is a robust market of purchasers and sellers.) We
purchased bonds we believed to be attractively valued, and held them until they
reached our return targets or until we found bonds that offered more compelling
prospects.
Throughout the period, we sought opportunities to enhance the trust's yield,
while adhering to our quality-driven criteria. We increased the trust's
allocation to relatively higher yielding tiers of the investment-grade market.
The trust purchased BBB rated credits, including tobacco revenue bonds. Our
confidence in these tobacco bonds was underpinned by the strong fundamentals of
the tobacco industry as well as by an improving litigation climate for tobacco
companies. The trust received a boost from an increased stake in hospital issues
rated A and BBB. We also purchased non-rated bonds with attractive yields, after
our in-depth research indicated characteristics comparable to bonds rated B or
higher.
3
We structured the portfolio to reflect our opinion that interest rates would
continue to rise, with short-term rates rising more rapidly than long-term
rates. To mitigate the trust's sensitivity to changing interest rates, we
positioned the trust's duration to be shorter than its benchmark's. (Duration is
a measure of interest rate sensitivity.)
Reflecting our belief that the long-term segment of the bond market would offer
the strongest performance, our purchases emphasized issues with maturities of 20
years and longer. Where possible, we favored bonds with defensive
characteristics, such as pricing to shorter calls. Meanwhile, sales included
short-term bonds with maturities of five years or less, and zero-coupon bonds
with a variety of maturities. (Zero-coupon bonds tend to underperform during
periods of rising interest rates.) We pared positions in pre-refunded issues
with maturities of 10 years or less, particularly emphasizing those with
maturities of five years or less. Within the longer-term portion of the
portfolio, we found opportunities for relative value trading.
The trust remained well diversified across the major sectors of the municipal
bond market, with a bias toward essential services. As of the close of the
reporting period, the trust's largest allocations were to the general purpose
and hospital sectors, followed by public education issues. Investment-grade
securities represented more than 90 percent of the trust's bond holdings;
credits rated AA or above accounted for 70 percent of bond assets.
VKQ's procedure for reinvesting all dividends and distributions in common shares
is through purchases in the open market. This method helps support the market
value of the trust's shares. In addition, we would like to remind you that the
Trustees have approved a procedure whereby the trust may, when appropriate,
purchase shares in the open market or in privately negotiated transactions at a
price not above market value or net asset value, whichever is lower at the time
of purchase.
There is no guarantee that any sectors mentioned will continue to perform as
discussed herein or that securities in such sectors will be held by the trust in
the future.
4
RATINGS ALLOCATION AS OF 4/30/06
AAA/Aaa 62.8%
AA/Aa 7.1
A/A 7.3
BBB/Baa 13.5
BB/Ba 0.7
B/B 1.2
Non-Rated 7.4
TOP FIVE SECTORS AS OF 4/30/06
General Purpose 15.1%
Hospital 14.8
Public Education 8.3
Bridge, Tunnel & Toll Road 6.4
Higher Education 6.3
SUMMARY OF INVESTMENTS BY STATE CLASSIFICATION AS OF 4/30/06
California 16.5%
New York 10.5
Illinois 7.7
Florida 7.3
New Jersey 6.5
Texas 6.5
Colorado 2.8
South Carolina 2.6
Connecticut 2.5
Washington 2.4
Ohio 2.3
Missouri 2.3
Pennsylvania 2.2
Louisiana 2.2
Massachusetts 2.1
Nevada 2.1
Michigan 1.9
North Carolina 1.8
Georgia 1.7
Arizona 1.6
Alabama 1.5
Indiana 1.4
Maryland 1.0
Tennessee 1.0
New Hampshire 0.9
Virginia 0.9
Puerto Rico 0.7
West Virginia 0.7
Iowa 0.7
Guam 0.7
District of Columbia 0.7
Oregon 0.6
Wisconsin 0.6
Arkansas 0.4
Oklahoma 0.4
(continued on next page)
5
SUMMARY OF INVESTMENTS BY STATE CLASSIFICATION AS OF 4/30/06
(continued from previous page)
Kansas 0.4
Alaska 0.3
Minnesota 0.3
Rhode Island 0.3
Kentucky 0.3
Vermont 0.2
South Dakota 0.2
New Mexico 0.2
Montana 0.1
Mississippi 0.0*
-----
100.0%
* Amount is less than 0.1%
Subject to change daily. Provided for informational purposes only and should not
be deemed as a recommendation to buy or sell the securities mentioned or
securities in the sectors shown above. Ratings and summary of investments by
state classification are as a percentage of total investments. Sectors are as a
percentage of long-term investments. Securities are classified by sectors that
represent broad groupings of related industries. 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. Rating allocations based upon ratings as issued by Standard
and Poor's and Moody's, respectively.
6
FOR MORE INFORMATION ABOUT PORTFOLIO HOLDINGS
Each Van Kampen trust provides a complete schedule of portfolio holdings
in its semiannual and annual reports within 60 days of the end of the
fund's second and fourth fiscal quarters. The semiannual reports and the
annual reports are filed electronically with the Securities and Exchange
Commission (SEC) on Form N-CSRS and Form N-CSR, respectively. Van Kampen
also delivers the semiannual and annual reports to trust shareholders,
and makes these reports available on its public Web site,
www.vankampen.com. In addition to the semiannual and annual reports that
Van Kampen delivers to shareholders and makes available through the Van
Kampen public Web site, each trust files a complete schedule of portfolio
holdings with the SEC for the trust's first and third fiscal quarters on
Form N-Q. Van Kampen does not deliver the reports for the first and third
fiscal quarters to shareholders, nor are the reports posted to the Van
Kampen public Web site. You may, however, obtain the Form N-Q filings (as
well as the Form N-CSR and N-CSRS filings) by accessing the SEC's Web
site, http://www.sec.gov. You may also review and copy them at the SEC's
Public Reference Room in Washington, DC. Information on the operation of
the SEC's Public Reference Room may be obtained by calling the SEC at
(800) SEC-0330. You can also request copies of these materials, upon
payment of a duplicating fee, by electronic request at the SEC's e-mail
address (publicinfo@sec.gov) or by writing the Public Reference section
of the SEC, Washington, DC 20549-0102.
You may obtain copies of a trust's fiscal quarter filings by contacting
Van Kampen Client Relations at (800) 847-2424.
7
PROXY VOTING POLICY AND PROCEDURES AND PROXY VOTING RECORD
You may obtain a copy of the trust's Proxy Voting Policy and Procedures
without charge, upon request, by calling toll free (800) 847-2424 or by
visiting our Web site at www.vankampen.com. It is also available on the
Securities and Exchange Commission's Web site at http://www.sec.gov.
You may obtain information regarding how the trust voted proxies relating
to portfolio securities during the most recent twelve-month period ended
June 30 without charge by visiting our Web site at www.vankampen.com.
This information is also available on the Securities and Exchange
Commission's Web site at http://www.sec.gov.
8
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED)
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
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MUNICIPAL BONDS 150.1%
ALABAMA 2.2%
$1,000 Birmingham Baptist Med Ctr AL Spl Care Fac Fin
Auth Rev Baptist Hlth Sys Ser A................. 5.875% 11/15/24 $ 1,049,170
3,695 Gadsden, AL Wts Ser B (AMBAC Insd) (a).......... 5.250 08/01/21 3,939,239
2,000 Jefferson Cnty, AL Ltd Oblig Sch Wt Ser A....... 5.250 01/01/23 2,094,980
4,000 Jefferson Cnty, AL Swr Rev Cap Impt Wts
(Prerefunded @ 08/01/12) (FGIC Insd)............ 5.125 02/01/42 4,263,120
2,335 Marshall Cnty, AL Hlthcare Ser C................ 6.000 01/01/32 2,467,978
-------------
13,814,487
-------------
ALASKA 0.5%
2,000 Alaska St Intl Arpt Rev Ser B (AMBAC Insd)
(Prerefunded @ 10/01/12)........................ 5.750 10/01/17 2,211,420
1,000 Matanuska-Susitna Boro, AK Ctf Partn Pub Safety
Bldg Lease (FSA Insd)........................... 5.750 03/01/16 1,066,820
-------------
3,278,240
-------------
ARIZONA 2.4%
1,425 Arizona Cap Fac Fin Corp Student Hsg Rev AZ St
Univ Proj....................................... 6.250 09/01/32 1,499,841
1,000 Arizona Hlth Fac Auth Hosp Sys Rev John C
Lincoln Hlth Network (Prerefunded @ 12/01/12)... 6.375 12/01/37 1,145,210
1,135 Cottonwood, AZ Wtr Rev Sys Sr Lien (XLCA
Insd)........................................... 5.000 07/01/35 1,165,452
1,650 Glendale, AZ Indl Dev Auth Rfdg................. 5.000 12/01/35 1,636,074
9,750 University Med Ctr Corp AZ Hosp Rev............. 5.000 07/01/35 9,628,320
-------------
15,074,897
-------------
ARKANSAS 0.6%
2,310 Arkansas St Dev Fin Auth Rev St Agy Fac Donaghey
Plaza Proj (FSA Insd)........................... 5.000 06/01/34 2,369,390
1,565 Fort Smith, AR Wtr & Swr Rev Ser C
(FSA Insd) (a).................................. 5.000 10/01/21 1,631,763
-------------
4,001,153
-------------
CALIFORNIA 24.8%
4,000 Anaheim, CA Pub Fin Auth Lease Rev Cap Apprec
Sub Pub Impt Proj Ser C (FSA Insd).............. * 09/01/20 2,020,240
7,500 Anaheim, CA Pub Fin Auth Rev Elec Sys Dist Fac
Ser A (FSA Insd)................................ 5.000 10/01/31 7,693,500
2,100 Bay Area Govt Assn CA Rev Tax Alloc CA Redev
Pool Ser A (XLCA Insd).......................... 5.250 09/01/35 2,212,140
1,560 California Cnty, CA Tob Agy Tob Merced Cnty Ser
A Rfdg.......................................... 5.125 06/01/38 1,521,546
1,875 California Cnty, CA Tob Agy Tob Merced Cnty Ser
A Rfdg.......................................... 5.250 06/01/45 1,848,844
7,125 California Ed Fac Auth Rev Pepperdine Univ Ser A
Rfdg (FGIC Insd)................................ 5.000 09/01/33 7,313,314
350 California Hlth Fac Fin Auth Rev Casa De Las Ser
A (MBIA Insd)................................... 5.250 08/01/17 360,045
See Notes to Financial Statements 9
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
----------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
$1,000 California Hlth Fac Fin Auth Rev Cedars Sinai
Med Ctr Rfdg.................................... 5.000% 11/15/27 $ 1,011,710
9,440 California Hlth Fac Fin Auth Rev Cedars Sinai
Med Ctr Rfdg.................................... 5.000 11/15/34 9,504,570
1,000 California Pollutn Ctl Fin Auth Solid Waste Disp
Rev Waste Mngmt Inc Proj Ser B (AMT)............ 5.000 07/01/27 996,690
5,500 California St (AMBAC Insd)...................... 5.125 10/01/27 5,632,770
5,000 California St (MBIA Insd)....................... 5.000 02/01/32 5,108,450
8,500 California St (AMBAC Insd)...................... 5.000 03/01/34 8,746,500
2,000 California St Dept Wtr Res Pwr Ser A
(Prerefunded @ 05/01/12)........................ 6.000 05/01/15 2,256,300
5,000 California St Dept Wtr Res Pwr Ser A
(Prerefunded @ 05/01/12) (AMBAC Insd) (b)....... 5.375 05/01/18 5,476,850
3,705 California St Dept Wtr Res Pwr Ser A
(Prerefunded @ 05/01/12) (MBIA Insd)............ 5.375 05/01/21 4,058,346
2,000 California St Dept Wtr Res Pwr Ser A
(Prerefunded @ 05/01/12) (MBIA Insd)............ 5.375 05/01/22 2,190,740
5,295 California St Econ Rec Ser A.................... 5.000 07/01/17 5,579,236
1,995 California St Pub Wks Brd UCLA Replacement Hosp
Ser A (FSA Insd)................................ 5.375 10/01/20 2,124,815
5,000 California St Univ Rev Syswide Ser A
(AMBAC Insd).................................... 5.000 11/01/23 5,189,350
2,650 California Statewide Cmnty Dev Auth Ctf Partn
(Prerefunded @ 11/01/09) (Acquired 11/23/99,
Cost $2,650,000) (c)............................ 7.250 11/01/29 3,010,241
1,000 California Statewide Cmnty Dev Auth Rev
Daughters of Charity Hlth Ser A................. 5.250 07/01/30 1,017,040
1,000 California Statewide Cmnty Dev Auth Rev
Daughters of Charity Hlth Ser A................. 5.250 07/01/35 1,015,790
2,000 California Statewide Cmnty Dev Auth Rev Hlth Fac
Adventist Hlth Ser A............................ 5.000 03/01/30 2,009,100
2,500 California Statewide Cmnty Dev Auth Rev Hlth Fac
Adventist Hlth Ser A............................ 5.000 03/01/35 2,508,525
3,805 California Statewide Cmnty Dev Auth Rev Sutter
Hlth Ser A...................................... 5.000 11/15/43 3,821,818
3,500 Capistrano, CA Uni Sch Dist (FGIC Insd)......... 5.000 09/01/29 3,603,775
1,000 Davis, CA Pub Fac Fin Auth Mace Ranch Area Ser
A............................................... 6.600 09/01/25 1,047,560
400 Del Mar, CA Race Track Auth Rev Rfdg (Escrowed
to Maturity).................................... 6.000 08/15/06 402,572
18,000 Foothill/Eastern Corridor Agy CA Toll Rd Rev Cap
Apprec Rfdg (MBIA Insd)......................... * 01/15/25 6,379,200
27,810 Foothill/Eastern Corridor Agy CA Toll Rd Rev Cap
Apprec Rfdg..................................... * 01/15/33 5,828,420
6,000 Foothill/Eastern Corridor Agy CA Toll Rd Rev Cap
Apprec Sr Lien Ser A (Escrowed to Maturity)..... * 01/01/18 3,540,300
10 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
----------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
$ 225 Foothill/Eastern Corridor Agy CA Toll Rd Rev Cap
Apprec Sr Lien Ser A (Prerefunded @ 01/01/10)... 7.150% 01/01/13 $ 255,654
5,300 Golden St, CA Tob Securitization Corp CA Tob
Settlement Rev Enhanced Ser A................... 5.000 06/01/45 5,336,358
2,240 Huntington Park, CA Redev Agy Rev Tax Alloc
Santa Fe Redev Rfdg............................. 6.200 10/01/27 2,316,899
2,635 Imperial Irr Dist CA Ctf Partn Elec Sys Proj
(FSA Insd)...................................... 5.250 11/01/23 2,789,833
3,000 Los Angeles, CA Uni Sch Dist Ser A (MBIA Insd)
(Prerefunded @ 07/01/13)........................ 5.375 07/01/18 3,279,360
4,400 Los Angeles, CA Uni Sch Dist Ser A (MBIA
Insd)........................................... 5.250 07/01/19 4,682,524
3,000 Sacramento, CA Muni Util Dist Elec Rev
Sacramento Mud Ser R (MBIA Insd)................ 5.000 08/15/33 3,089,400
1,375 San Bernadino, CA Jt Pwrs Fin Auth Alloc Rev
Cent City Merged Proj Ser A Rfdg (AMBAC Insd)
(a)............................................. 5.750 07/01/20 1,566,785
2,500 San Francisco, CA City & Cnty Pub Util Com Wtr
Rev Ser A (MBIA Insd)........................... 5.000 11/01/32 2,558,500
1,000 San Joaquin Hills, CA Transn Corridor Agy Toll
Rd Rev Cap Apprec Ser A Rfdg (MBIA Insd)........ * 01/15/27 360,260
1,000 San Joaquin Hills, CA Transn Corridor Agy Toll
Rd Rev Cap Apprec Ser A Rfdg (MBIA Insd)........ * 01/15/28 342,930
4,290 Tobacco Securitization Auth Northn CA Tob
Settlement Rev Bd Ser A-1....................... 5.375 06/01/38 4,320,459
3,050 Tobacco Securitization Auth Northn CA Tob
Settlement Rev Bd Ser A-1....................... 5.500 06/01/45 3,085,715
5,000 University CA Rev Gen Ser B (AMBAC Insd)........ 5.000 05/15/20 5,196,850
-------------
154,211,824
-------------
COLORADO 4.2%
1,600 Arkansas River Pwr Auth Colo Impt............... 5.250 10/01/40 1,683,264
1,000 Colorado Hlth Fac Auth Rev Catholic Hlth
Initiatives Ser A (Escrowed to Maturity)........ 5.500 03/01/32 1,076,050
2,250 Colorado Hlth Fac Auth Rev Covenant Retirement
Cmnty Inc....................................... 5.000 12/01/35 2,197,237
1,000 Colorado Hlth Fac Auth Rev Evangelical Lutheran
Ser A........................................... 5.250 06/01/34 1,013,300
3,700 Colorado Hlth Fac Auth Rev Hlth Fac Evangelical
Lutheran........................................ 5.000 06/01/35 3,665,109
1,125 Colorado Hlth Fac Auth Rev Hosp Portercare
Adventist Hlth (Prerefunded @ 11/15/11)......... 6.500 11/15/31 1,279,294
4,000 Colorado Springs, CO Util Rev Sys Sub Lien Impt
Ser A Rfdg...................................... 5.000 11/15/29 4,076,480
265 Jefferson Cnty, CO Residential Mtg Rev
(Escrowed to Maturity) (a)...................... 11.500 09/01/08 308,958
300 Jefferson Cnty, CO Residential Mtg Rev
(Escrowed to Maturity) (a)...................... 11.500 09/01/09 369,207
See Notes to Financial Statements 11
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
----------------------------------------------------------------------------------------------
COLORADO (CONTINUED)
$ 340 Jefferson Cnty, CO Residential Mtg Rev
(Escrowed to Maturity) (a)...................... 11.500% 09/01/10 $ 439,790
220 Jefferson Cnty, CO Residential Mtg Rev
(Escrowed to Maturity).......................... 11.500 09/01/11 297,502
100 Jefferson Cnty, CO Residential Mtg Rev
(Escrowed to Maturity) (a)...................... 9.000 09/01/12 126,778
1,000 Park Creek Metro Dist CO Rev Sr Ltd Tax Ppty Tax
Rfdg............................................ 5.500 12/01/30 1,023,280
2,000 Park Creek Metro Dist CO Rev Sr Ltd Tax Ppty Tax
Rfdg............................................ 5.500 12/01/37 2,036,280
6,365 Platte Riv Pwr Auth CO Pwr Rev Ser EE........... 5.375 06/01/16 6,831,300
-------------
26,423,829
-------------
CONNECTICUT 3.7%
2,265 Bridgeport, CT Ser A (MBIA Insd) (Prerefunded @
08/15/14) (a)................................... 5.250 08/15/23 2,454,784
2,840 Connecticut St Spl Oblig Pkg Rev Bradley Intl
Arpt Ser A (AMT) (ACA Insd)..................... 6.600 07/01/24 3,098,582
3,540 Mashantucket Western Pequot Tribe CT Spl Rev Ser
A, 144A--Private Placement (d).................. 6.400 09/01/11 3,634,164
3,460 Mashantucket Western Pequot Tribe CT Spl Rev Ser
A, 144A--Private Placement (Prerefunded @
09/01/07) (d)................................... 6.400 09/01/11 3,615,665
6,500 Mashantucket Western Pequot Tribe CT Spl Rev Ser
B, 144A--Private Placement (d).................. 5.750 09/01/18 6,698,640
3,500 Mashantucket Western Pequot Tribe CT Spl Rev Ser
B, 144A--Private Placement (d).................. 5.750 09/01/27 3,579,065
-------------
23,080,900
-------------
DISTRICT OF COLUMBIA 1.0%
1,000 District of Columbia Hosp Rev Medlantic Hlthcare
Group A Rfdg (Escrowed to Maturity) (MBIA
Insd)........................................... 5.875 08/15/19 1,026,090
5,000 Metropolitan WA DC Arpt Auth Sys Ser A (AMT)
(FGIC Insd)..................................... 5.125 10/01/26 5,120,400
-------------
6,146,490
-------------
FLORIDA 10.9%
3,380 Brevard Cnty, FL Hlth Fac Hlth First Inc Proj
(MBIA Insd)..................................... 5.125 04/01/31 3,468,353
3,800 Brevard Cnty, FL Hlth Fac Hlth First Inc Proj... 5.000 04/01/34 3,839,558
400 Capital Tr Agy FL Rev Ft Lauderdale Proj
(AMT)........................................... 5.750 01/01/32 414,608
460 Escambia Cnty, FL Hlth Fac Auth Rev (AMBAC
Insd)........................................... 5.950 07/01/20 483,023
1,500 Florida Muni Ln Council Rev Ser A (MBIA Insd)... 5.000 02/01/35 1,543,290
3,000 Florida St Dept Environmental Prot Preservtn Rev
Ser A (FGIC Insd)............................... 5.750 07/01/10 3,235,110
3,880 Florida St Dept Trans Right of Way Ser A........ 5.250 07/01/21 4,153,734
5,000 Florida St Dept Trans Tpk Rev Ser A............. 5.000 07/01/29 5,172,600
12 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
----------------------------------------------------------------------------------------------
FLORIDA (CONTINUED)
$1,895 Gulf Breeze, FL Rev Loc Govt (Variable Rate
Coupon) (FGIC Insd) (a)......................... 5.625% 12/01/20 $ 1,999,358
1,250 Highlands Cnty, FL Hlth Fac Auth Rev Hosp
Adventist Hlth Ser C Rfdg....................... 5.000 11/15/31 1,254,200
5,000 Highlands Cnty, FL Hlth Fac Auth Rev Hosp
Adventist Hlth Ser D............................ 5.000 11/15/35 5,024,750
1,000 Highlands Cnty, FL Hlth Fac Auth Rev Hosp
Adventist Hlth Ser D............................ 5.375 11/15/35 1,030,020
2,310 Hillsborough Cnty, FL Indl Dev Auth Indl Dev Rev
Hlth Fac Proj Univ Cmnty Hosp Ser A............. 5.500 08/15/14 2,367,796
1,000 Jacksonville, FL Sales Tax Rev Better
Jacksonville (MBIA Insd)........................ 5.250 10/01/21 1,063,860
2,500 Jea, FL Elec Sys Rev Ser Three-A (FSA Insd)..... 5.000 10/01/41 2,563,050
265 Lakeland, FL Hosp Sys Rev Lakeland
Regl Hlth Sys................................... 5.500 11/15/32 275,346
1,515 Miami Beach, FL Stormwtr Rev (FGIC Insd)........ 5.250 09/01/25 1,593,553
2,000 Miami-Dade Cnty, FL Aviation Rev Miami Intl Arpt
(AMT) (FGIC Insd)............................... 5.375 10/01/25 2,098,220
2,700 Miami-Dade Cnty, FL Aviation Rev Miami Intl Arpt
(AMT) (FGIC Insd)............................... 5.375 10/01/32 2,811,186
5,000 Miami-Dade Cnty, FL Aviation Rev Miami Intl Arpt
Ser A (AMT) (FSA Insd).......................... 5.125 10/01/35 5,107,300
2,000 Miami-Dade Cnty, FL Pub Fac Rev Jackson Hlth Sys
Ser A (MBIA Insd)............................... 5.000 06/01/31 2,057,320
3,750 Orange Cnty, FL Sch Brd Ctf Partn Ser A (AMBAC
Insd)........................................... 5.250 08/01/14 4,010,925
4,320 Orange Cnty, FL Tourist Dev Tax Rev (Prerefunded
@ 10/01/09) (AMBAC Insd)........................ 5.625 10/01/14 4,580,064
4,300 Orange Cnty, FL Tourist Dev Tax Rev (Prerefunded
@ 10/01/09) (AMBAC Insd)........................ 5.500 10/01/31 4,541,746
1,060 Tallahassee, FL Lease Rev FL St Univ Proj Ser A
(MBIA Insd) (a)................................. 5.500 08/01/18 1,132,854
1,000 Tampa-Hillsborough Cnty, FL Expwy Auth Rev
(AMBAC Insd).................................... 5.000 07/01/25 1,043,300
1,140 University Cent FL Ctf Partn UCF Convocation
Corp Ser A (FGIC Insd).......................... 5.000 10/01/35 1,168,819
-------------
68,033,943
-------------
GEORGIA 2.6%
2,000 Atlanta, GA Arpt Passenger Fac Gen Sub Lien Ser
C (FSA Insd).................................... 5.000 01/01/33 2,047,700
1,000 Augusta, GA Gen Arpt Rev Passenger
Ser B (AMT)..................................... 5.350 01/01/28 1,003,910
1,400 Municipal Elec Auth GA Combustion Turbine Ser A
(MBIA Insd)..................................... 5.250 11/01/14 1,499,988
8,025 Municipal Elec Auth GA Combustion Turbine Ser A
(MBIA Insd)..................................... 5.250 11/01/18 8,542,773
See Notes to Financial Statements 13
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
----------------------------------------------------------------------------------------------
GEORGIA (CONTINUED)
$1,000 Oconee Cnty, GA Indl Dev Auth Oiit Proj (XLCA
Insd)........................................... 5.250% 07/01/23 $ 1,048,300
2,000 Royston, GA Hosp Auth Hosp Ctf Rev Ty Cobb
Hlthcare Sys Inc Rfdg........................... 6.500 07/01/27 1,986,140
-------------
16,128,811
-------------
ILLINOIS 11.6%
2,000 Bolingbrook, IL Sales Tax Rev (e)............... 0/6.250 01/01/24 1,820,920
3,400 Carol Stream, IL First Mtg Rev Windsor Pk Mnr
Proj (Prerefunded @ 12/01/07)................... 7.000 12/01/13 3,615,356
1,500 Champaign Cnty, IL Cmnty Unit Sch Dist No 116
Urbana Ser C (Prerefunded @ 01/01/10) (FGIC
Insd)........................................... * 01/01/16 923,220
1,300 Champaign Cnty, IL Cmnty Unit Sch Dist No 116
Urbana Ser C (Prerefunded @ 01/01/10) (FGIC
Insd)........................................... * 01/01/18 708,136
4,000 Chicago, IL Neighborhoods Alive 21 Pgm Ser A
(Prerefunded @ 07/01/10) (FGIC Insd)............ 5.750 01/01/40 4,341,320
5,000 Chicago, IL O'Hare Intl Arpt Rev Gen Arpt Third
Lien Ser A Rfdg (AMT) (MBIA Insd)............... 5.375 01/01/32 5,150,750
3,500 Chicago, IL O'Hare Intl Arpt Rev Gen Arpt Third
Lien Ser C-2 Rfdg (AMT) (FSA Insd).............. 5.250 01/01/30 3,594,220
7,500 Chicago, IL O'Hare Intl Arpt Rev Rols RR II
494-1 (Inverse Fltg) (Acquired 12/16/05, Cost
$8,567,573) (MBIA Insd) (c)..................... 6.586 01/01/24 8,449,125
1,015 Chicago, IL O'Hare Intl Arpt Rev Second Lien
Passenger Fac Ser B (AMBAC Insd)................ 5.500 01/01/16 1,083,949
485 Chicago, IL Pk Dist Ser C (FGIC Insd)........... 5.500 01/01/19 516,224
1,495 Chicago, IL Pk Dist Ser C (Prerefunded @
07/01/11) (FGIC Insd)........................... 5.500 01/01/19 1,615,841
2,565 Chicago, IL Proj Ser C Rfdg (FGIC Insd) (a)..... 5.750 01/01/12 2,774,047
465 Chicago, IL Proj Ser C Rfdg (FGIC Insd)......... 5.500 01/01/40 495,118
5 Chicago, IL Single Family Mtg Rev Ser B (AMT)
(GNMA Collateralized)........................... 7.625 09/01/27 5,018
1,000 Cook Cnty, IL Cmnty Cons Sch Dist No 64 Park
Ridge (FSA Insd)................................ 5.500 12/01/14 1,098,050
510 Cook Cnty, IL Sch Dist No 107 (a)............... 7.150 12/01/08 551,713
575 Cook Cnty, IL Sch Dist No 107 (a)............... 7.200 12/01/09 638,520
625 Cook Cnty, IL Sch Dist No 107................... 7.000 12/01/10 705,425
1,000 Cook Cnty, IL Ser A (FGIC Insd) (Prerefunded @
05/15/11)....................................... 5.500 11/15/31 1,079,060
2,725 Illinois Dev Fin Auth Rev Cmnty Rehab Providers
Fac Ser A....................................... 7.375 07/01/25 2,957,415
1,565 Illinois Ed Fac Auth Rev DePaul Univ
(Prerefunded @ 10/01/10) (AMBAC Insd)........... 5.625 10/01/15 1,697,180
1,605 Illinois Ed Fac Auth Rev Lewis Univ............. 5.900 10/01/14 1,615,015
1,500 Illinois Fin Auth Rev IL Inst of Technology Ser
A............................................... 5.000 04/01/31 1,513,380
14 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
----------------------------------------------------------------------------------------------
ILLINOIS (CONTINUED)
$1,000 Illinois Fin Auth Rev Landing at Plymouth Pl
Proj Ser A...................................... 6.000% 05/15/25 $ 1,035,050
1,350 Illinois Fin Auth Rev Landing at Plymouth Pl
Proj Ser A...................................... 6.000 05/15/37 1,388,718
2,500 Illinois Fin Auth Rev Northwestern Mem Hosp Ser
A............................................... 5.500 08/15/43 2,633,975
1,645 Illinois Hlth Fac Auth Rev Evangelical Hosp Ser
C Rfdg (FSA Insd)............................... 6.750 04/15/12 1,825,160
1,500 Illinois St First Ser (FGIC Insd)............... 5.375 11/01/14 1,607,415
3,000 Illinois St First Ser (FSA Insd)................ 5.250 12/01/21 3,179,970
3,440 Kendall Kane & Will Cntys, IL Cmnty Sch Dist No
308 Ser B (FGIC Insd) (a)....................... 5.250 10/01/19 3,649,186
250 Lake Cnty, IL Cmnty Unit Sch Dist No 116 Round
Lake (Escrowed to Maturity) (Radian Insd)....... 7.600 02/01/14 306,467
2,675 Metropolitan Pier & Expo Auth IL Dedicated St
Tax Rev McCormick Pl Expn Ser A (MBIA Insd)..... 5.250 06/15/42 2,807,894
351 Pingree Grove Vlg, IL Spl Svc Area No 1 Spl Tax
Ser 05-1 Cambridge Lakes Proj................... 5.250 03/01/15 353,071
2,500 Schaumburg, IL Ser B (FGIC Insd)................ 5.000 12/01/41 2,549,750
1,335 Will Cnty, IL Cmnty Sch Dist No 161 Summit Hill
Cap Apprec (FGIC Insd).......................... * 01/01/16 863,852
990 Will Cnty, IL Cmnty Sch Dist No 161 Summit Hill
Cap Apprec (FGIC Insd).......................... * 01/01/19 544,688
675 Will Cnty, IL Cmnty Sch Dist No 161 Summit Hill
Cap Apprec (Escrowed to Maturity) (FGIC Insd)... * 01/01/16 438,439
425 Will Cnty, IL Cmnty Sch Dist No 161 Summit Hill
Cap Apprec (Escrowed to Maturity) (FGIC Insd)... * 01/01/19 237,328
1,000 Yorkville, IL Utd City Spl Svc Area Spl Tax No
2004-107 Raintree Vlg IL Proj................... 6.250 03/01/35 1,016,830
1,000 Yorkville, IL Utd City Spl Svc Area Tax No
2005-108 Autumn Creek IL Proj................... 6.000 03/01/36 995,090
-------------
72,381,885
-------------
INDIANA 2.1%
1,000 Allen Cnty, IN Juvenile Justice Ctr First Mtg
(AMBAC Insd).................................... 5.500 01/01/18 1,072,030
3,000 Indiana Hlth Fac Fin Auth Hosp Rev Cmnty Proj
Ser A (AMBAC Insd).............................. 5.000 05/01/35 3,072,120
3,710 Indianapolis, IN Loc Pub Impt Bd Bk Drivers Ser
1154 (Inverse Fltg) (Acquired 11/14/05, Cost
$3,974,746) (MBIA Insd) (c)..................... 7.124 07/01/13 4,105,671
1,500 Petersburg, IN Pollutn Ctl Rev IN Pwr & Lt
(AMT)........................................... 5.950 12/01/29 1,588,185
See Notes to Financial Statements 15
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
----------------------------------------------------------------------------------------------
INDIANA (CONTINUED)
$ 470 Saint Joseph Cnty, IN Econ Dev Rev Holy Cross
Vlg IN Notre Dame Pj Ser A...................... 6.000% 05/15/38 $ 486,473
2,500 Vigo Cnty, IN Sch Bldg Corp First Mtg Impt &
Rfdg (FSA Insd)................................. 5.250 07/10/24 2,618,300
-------------
12,942,779
-------------
IOWA 1.0%
2,250 Tobacco Settlement Auth IA Tob Settlement Rev
Ser C........................................... 5.375 06/01/38 2,249,887
1,800 Tobacco Settlement Auth IA Tob Settlement Rev
Ser C........................................... 5.500 06/01/42 1,815,912
2,250 Tobacco Settlement Auth IA Tob Settlement Rev
Ser C........................................... 5.625 06/01/46 2,296,395
-------------
6,362,194
-------------
KANSAS 0.6%
1,825 Cowley Cnty, KS Uni Sch Dist No 465 Winfield
Impt & Rfdg (MBIA Insd) (a)..................... 5.250 10/01/22 1,968,171
400 Overland Pk, KS Dev Corp Rev First Tier Overland
Park Ser A...................................... 7.375 01/01/32 438,016
1,000 Wyandotte Cnty, KS Sch Dist 500 Rfdg (FSA
Insd)........................................... 5.000 09/01/19 1,052,150
-------------
3,458,337
-------------
KENTUCKY 0.4%
2,350 Louisville & Jefferson, KY Swr Ser A (MBIA Insd)
(a)............................................. 5.500 05/15/15 2,556,447
-------------
LOUISIANA 3.3%
5,000 Ernest N Morial New Orleans, LA Exhib Hall Auth
Spl Tax Sub Ser A (AMBAC Insd).................. 5.250 07/15/21 5,214,400
2,000 Ernest N Morial New Orleans, LA Exhib Hall Auth
Spl Tax Sub Ser A (AMBAC Insd).................. 5.000 07/15/33 2,020,960
1,485 Louisiana Hsg Fin Agy Rev Azalea Estates Ser A
Rfdg (AMT) (GNMA Collateralized)................ 5.375 10/20/39 1,514,952
1,675 Louisiana Loc Govt Environmental Fac Pkg Fac
Corp Garage Proj Ser A (AMBAC Insd) (a)......... 5.200 10/01/19 1,751,899
2,580 Louisiana Loc Govt Environmental Rev Southeastn
LA Student Hsg Ser A (MBIA Insd)................ 5.250 08/01/21 2,720,249
7,474 Louisiana St Univ & Agric & Mechanical College
Univ Rev Master Agreement (Acquired 11/30/98,
Cost $7,473,762) (c)............................ 5.750 10/30/18 7,020,180
-------------
20,242,640
-------------
MARYLAND 1.5%
2,300 Baltimore, MD Cap Apprec Cons Pub Ser A Impt &
Rfdg (FGIC Insd)................................ * 10/15/06 2,243,351
1,120 Baltimore, MD Convention Ctr Hotel Rev Drivers
Ser 1251 (Acquired 02/06/06, Cost $1,318,341)
(Inverse Fltg) (XLCA Insd) (c).................. 6.368 03/01/14 1,275,646
16 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
----------------------------------------------------------------------------------------------
MARYLAND (CONTINUED)
$ 500 Maryland St Econ Dev Corp Student Hsg Rev Univ
MD College Pk Proj (Prerefunded @ 06/01/13)..... 5.625% 06/01/35 $ 546,330
1,700 Maryland St Trans Auth Arpt Baltimore/WA Intl
Arpt Ser B (AMT) (AMBAC Insd)................... 5.125 03/01/24 1,764,753
2,365 Northeast, MD Waste Disp Auth Rfdg (AMT) (AMBAC
Insd)........................................... 5.500 04/01/16 2,518,039
750 Prince Georges Cnty, MD Spl Oblig Natl Harbor
Proj............................................ 5.200 07/01/34 753,255
-------------
9,101,374
-------------
MASSACHUSETTS 3.1%
1,495 Massachusetts Bay Trans Auth MA Sales Tax Rev
Ser A........................................... 5.000 07/01/35 1,530,835
1,775 Massachusetts Muni Whsl Elec Co Nuclear Proj 5
(MBIA Insd)..................................... 5.250 07/01/13 1,902,125
2,765 Massachusetts St Dev Fin Agy Proj Ser R-2 (MBIA
Insd)........................................... 5.125 02/01/34 2,835,950
750 Massachusetts St Dev Fin Agy Rev Boston
Architectural Ctr (ACA Insd).................... 6.100 09/01/18 782,325
1,000 Massachusetts St Dev Fin Agy Rev Boston
Architectural Ctr (ACA Insd).................... 6.250 09/01/28 1,039,200
1,000 Massachusetts St Hlth & Ed Fac Auth Rev Partn
Hlthcare Sys Ser C.............................. 5.750 07/01/32 1,075,310
3,700 Massachusetts St Hlth & Ed Fac Auth Rev Ser G
(MBIA Insd)..................................... 5.000 07/01/13 3,706,549
4,850 Massachusetts St Hlth & Ed Fac Auth Rev Univ of
MA Mem Issue Ser D.............................. 5.000 07/01/33 4,810,472
1,750 Massachusetts St Wtr Res Auth Rols RR II R 526
(Acquired 03/01/06, Cost $1,936,235) (Inverse
Fltg) (c)....................................... 6.079 08/01/31 1,876,262
-------------
19,559,028
-------------
MICHIGAN 2.8%
3,275 Detroit, MI Loc Dev Fin Auth Tax Increment Sr
Ser B (Acquired 09/08/97, Cost $3,275,000)
(c)............................................. 6.700 05/01/21 3,341,286
790 Detroit, MI Loc Dev Fin Auth Tax Increment Sub
Ser C (Acquired 09/08/97, Cost $790,000) (c).... 6.850 05/01/21 807,032
3,860 Detroit, MI Ser A (XLCA Insd) (a)............... 5.250 04/01/21 4,057,439
1,200 Detroit, MI Wtr Supply Sys Rev Sr Lien Ser C
Rfdg (MBIA Insd)................................ 5.250 07/01/18 1,278,432
1,180 Hillsdale, MI Hosp Fin Auth Hosp Rev Hillsdale
Cmnty Hlth Ctr.................................. 5.750 05/15/18 1,224,462
1,000 Kent Hosp Fin Auth MI Rev Metro Hosp Proj
Ser A........................................... 5.250 07/01/30 995,180
1,000 Kent Hosp Fin Auth MI Rev Metro Hosp Proj
Ser A........................................... 6.000 07/01/35 1,065,810
1,450 Michigan St Hosp Fin Auth Rev Chelsea Cmnty Hosp
Oblig........................................... 5.000 05/15/37 1,402,266
See Notes to Financial Statements 17
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
----------------------------------------------------------------------------------------------
MICHIGAN (CONTINUED)
$ 500 Michigan St Hosp Fin Auth Rev Hosp Genesys Regl
Med Ser A Rfdg (Escrowed to Maturity)........... 5.375% 10/01/13 $ 522,745
1,130 Michigan St Hsg Dev Rental Hsg Rev Ser A (AMT)
(MBIA Insd)..................................... 5.300 10/01/37 1,138,757
1,500 Michigan St Strategic Fd Detroit Edison Co Proj
Ser C Rfdg (AMT) (XLCA Insd).................... 5.450 12/15/32 1,571,715
-------------
17,405,124
-------------
MINNESOTA 0.5%
1,260 Glencoe, MN Hlthcare Fac Rev Glencoe Regl Hlth
Svc Proj........................................ 5.000 04/01/31 1,248,433
1,750 Saint Paul, MN Hsg & Redev Auth Hosp Rev Hlth
East Proj....................................... 6.000 11/15/35 1,874,110
-------------
3,122,543
-------------
MISSISSIPPI 0.0%
285 Mississippi Home Corp Single Family Rev Mtg Ser
F (AMT) (GNMA Collateralized)................... 7.550 12/01/27 285,998
-------------
MISSOURI 3.2%
1,000 Cape Girardeau Cnty, MO Indl Dev Auth Hlthcare
Fac Rev Southeast MO Hosp Assoc................. 5.625 06/01/27 1,024,250
1,000 Carthage, MO Hosp Rev........................... 5.875 04/01/30 1,001,810
2,250 Carthage, MO Hosp Rev........................... 6.000 04/01/38 2,245,118
1,400 Ellisville, MO Indl Dev Auth Rev Gambrill
Gardens Proj Impt & Rfdg........................ 6.100 06/01/20 1,418,102
1,000 Ellisville, MO Indl Dev Auth Rev Gambrill
Gardens Proj Impt & Rfdg........................ 6.200 06/01/29 1,010,880
385 Fenton, MO Tax Increment Rev & Impt Gravois
Bluffs Proj Rfdg (Prerefunded @ 10/01/11)....... 7.000 10/01/21 439,770
1,000 Kearney, MO (AMBAC Insd)........................ 5.500 03/01/16 1,066,830
1,200 Missouri St Hlth & Ed Fac Auth Rev Sr Living Fac
Lutheran Ser B Rfdg............................. 5.125 02/01/27 1,204,476
1,415 Missouri St Hlth & Ed Fac Rev Univ MO Columbia
Arena Proj...................................... 5.000 11/01/18 1,474,741
1,000 Missouri St Hwys & Trans Commn Rd Rev Ser A..... 5.125 02/01/17 1,051,620
2,810 Perry Cnty, MO Nursing Home Rev Rfdg............ 5.900 03/01/28 2,812,613
1,000 Saint Charles, MO Ctf Partn Ser B............... 5.500 05/01/18 1,041,360
2,505 Saint Louis, MO Arpt Rev Cap Impt Prog Ser A
(Prerefunded @ 07/01/12) (MBIA Insd) (a)........ 5.375 07/01/20 2,710,886
1,460 Saint Louis, MO Brd Ed Direct Dep Pgm Ser A Rfdg
(FSA Insd)...................................... 5.000 04/01/21 1,515,290
-------------
20,017,746
-------------
MONTANA 0.2%
1,000 Forsyth, MT Pollutn Ctl Rev Northwestn Corp
Colstrip Rfdg (AMBAC Insd) (f).................. 4.650 08/01/23 1,003,420
-------------
18 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
----------------------------------------------------------------------------------------------
NEVADA 3.1%
$3,000 Clark Cnty, NV Arpt Rev Sub Lien Ser A-2 (FGIC
Insd)........................................... 5.000% 07/01/36 $ 3,059,280
5,000 Clark Cnty, NV Bd Bk (MBIA Insd)................ 5.000 06/01/32 5,111,000
4,000 Clark Cnty, NV Indl Dev Rev Southwest Gas Corp
Proj Ser A (AMT) (AMBAC Insd)................... 5.250 07/01/34 4,143,520
2,600 Henderson, NV Loc Impt Dist No T-18............. 5.300 09/01/35 2,590,198
125 Nevada Hsg Div Single Family Mtg Mezz Ser D2
(AMT)........................................... 6.300 04/01/21 126,104
930 Reno, NV Cap Impt Rev (FGIC Insd)............... 5.125 06/01/26 961,034
1,570 Reno, NV Cap Impt Rev (Prerefunded @ 06/01/12)
(FGIC Insd)..................................... 5.125 06/01/26 1,674,907
1,500 Reno, NV Sr Lien Retrac Reno Trans Proj (AMBAC
Insd) (Prerefunded @ 06/01/12).................. 5.125 06/01/37 1,600,230
-------------
19,266,273
-------------
NEW HAMPSHIRE 1.4%
4,800 New Hampshire Higher Ed & Hlth Fac Auth Rev
Daniel Webster College Issue.................... 6.300 07/01/29 4,610,496
2,000 New Hampshire Higher Ed & Hlth Fac Auth Rev
Riverwoods at Exeter Ser A...................... 6.500 03/01/23 2,029,740
1,525 New Hampshire Hlth & Ed Fac Auth Rev Derryfield
Sch............................................. 6.750 07/01/20 1,606,801
250 New Hampshire Hlth & Ed Fac Hlthcare Sys
Covenant Hlth................................... 5.500 07/01/34 258,845
-------------
8,505,882
-------------
NEW JERSEY 9.8%
1,615 Eastern Camden Cnty, NJ Regl Sch Dist Rfdg (FGIC
Insd) (a)....................................... * 03/01/07 1,563,449
1,555 Eastern Camden Cnty, NJ Regl Sch Dist Rfdg (FGIC
Insd) (a)....................................... * 03/01/08 1,448,622
2,895 Essex Cnty, NJ Impt Auth Rev Cnty Gtd Proj
Consldtn Rfdg (MBIA Insd)....................... 5.125 10/01/20 3,046,524
1,000 New Jersey Econ Dev Auth Econ Dev Rev Kapkowski
Rd Landfill Proj Rfdg........................... 5.750 04/01/31 1,085,730
3,880 New Jersey Econ Dev Auth Mtr Veh Rev Ser A (MBIA
Insd)........................................... 5.000 07/01/22 4,028,720
1,500 New Jersey Econ Dev Auth Rev Cig Tax............ 5.750 06/15/29 1,586,115
500 New Jersey Econ Dev Auth Rev Cig Tax............ 5.750 06/15/34 525,960
25,000 New Jersey Econ Dev Auth St Contract Econ
Recovery (MBIA Insd)............................ 5.900 03/15/21 29,046,500
1,500 New Jersey Econ Dev Auth Wtr Fac Rev NJ American
Wtr Co Inc Ser B (AMT) (FGIC Insd).............. 5.375 05/01/32 1,549,470
2,825 New Jersey St Ed Fac Auth Higher Ed Cap Impt Ser
A (AMBAC Insd).................................. 5.250 09/01/19 3,003,851
1,000 New Jersey St Ed Fac Auth Higher Ed Cap Impt Ser
A (AMBAC Insd).................................. 5.250 09/01/21 1,059,980
See Notes to Financial Statements 19
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
----------------------------------------------------------------------------------------------
NEW JERSEY (CONTINUED)
$3,500 New Jersey St Tpk Auth Tpk Rev Ser C
(FSA Insd)...................................... 6.500% 01/01/16 $ 4,021,990
5,000 New Jersey St Tpk Auth Tpk Rev Ser C-1 (AMBAC
Insd)........................................... 5.000 01/01/35 5,118,550
1,000 New Jersey St Trans Tr Fd Auth Trans Sys Ser
A............................................... 5.750 06/15/18 1,119,290
3,000 Newark, NJ Hsg Auth Port Auth Newark Marine
Terminal (MBIA Insd)............................ 5.000 01/01/37 3,083,520
-------------
61,288,271
-------------
NEW MEXICO 0.2%
1,500 Jicarilla, NM Apache Nation Adj Ser A (Acquired
10/23/03, Cost $1,514,910) (c).................. 5.000 09/01/18 1,526,310
-------------
NEW YORK 15.8%
3,600 Erie Cnty, NY Tob Asset Securitization Corp
Asset Bkd Ser A................................. 5.000 06/01/38 3,474,432
14,000 Metropolitan Trans Auth NY Rev Ser A Rfdg (FSA
Insd)........................................... 5.000 11/15/30 14,355,320
3,000 Metropolitan Trans Auth NY Rev Ser A Rfdg (FGIC
Insd)........................................... 5.250 11/15/31 3,160,020
2,000 Nassau Cnty, NY Tob Settlement Corp Ser A-3..... 5.125 06/01/46 1,943,580
1,000 Nassau Cnty, NY Tob Settlement Corp Ser A-3..... 5.000 06/01/35 970,860
85 New York City Adj Sub Ser A-1................... 5.750 08/01/12 85,121
2,625 New York City Hlth & Hosp Corp Rev Hlth Sys Ser
A (AMBAC Insd).................................. 5.000 02/15/11 2,758,639
3,000 New York City Indl Dev Agy Amern Airl JFK Intl
Arpt (Variable Rate Coupon) (AMT)............... 7.625 08/01/25 3,288,600
1,000 New York City Indl Dev Agy Amern Airl JFK Intl
Arpt (Variable Rate Coupon) (AMT)............... 7.750 08/01/31 1,100,650
400 New York City Indl Dev Agy Rev Liberty 7 World
Trade Ctr Ser A................................. 6.250 03/01/15 420,196
2,500 New York City Muni Wtr Fin Auth Wtr & Swr Sys
Rev Ser D....................................... 5.000 06/15/39 2,559,500
5,000 New York City Ser A............................. 6.250 08/01/08 5,103,300
3,000 New York City Ser G............................. 5.000 12/01/27 3,070,350
2,000 New York City Ser H............................. 5.750 03/15/13 2,162,040
1,000 New York City Trans Future Tax Second Ser C
(AMBAC Insd).................................... 5.250 08/01/22 1,062,740
4,000 New York City Transitional Fin Auth Future Tax
Secd Ser E...................................... 5.000 02/01/33 4,099,920
1,545 New York St Dorm Auth Lease Teachers College
(FSA Insd)...................................... 5.250 08/15/15 1,648,283
6,800 New York St Dorm Auth Rev City Univ Sys Cons Ser
A............................................... 5.625 07/01/16 7,481,020
1,250 New York St Dorm Auth Rev Cons City Univ Sys Ser
A (FSA Insd).................................... 5.750 07/01/13 1,387,250
350 New York St Dorm Auth Rev Mt Sinai NYU Hlth..... 5.500 07/01/26 353,861
20 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
----------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
$3,000 New York St Dorm Auth Rev Sch Dist Fin Pgm Ser D
(MBIA Insd)..................................... 5.500% 10/01/17 $ 3,248,220
4,200 New York St Dorm Auth Rev Secd Hosp N General
Hosp Rfdg....................................... 5.750 02/15/19 4,566,954
3,984 Plainedge, NY Un Free Sch Dist No. 2063
(Acquired 7/25/97, Cost $3,983,998) (c)......... 6.000 06/01/12 4,087,065
3,000 Triborough Brdg & Tunl Auth Gen Purp Ser A...... 5.000 01/01/27 3,064,410
5,000 Triborough Brdg & Tunl Auth NY Gen Ser B Rfdg... 5.000 11/15/21 5,164,050
3,900 Triborough Brdg & Tunl Auth NY Rev Rfdg (MBIA
Insd)........................................... 5.000 11/15/32 3,999,411
2,000 Tsasc Inc NY Rev Ser 1.......................... 5.125 06/01/42 1,951,720
10,500 Tsasc Inc NY Rev Ser 1.......................... 5.000 06/01/34 10,198,650
1,000 Westchester Tob Asset Securitization Corp NY.... 5.000 06/01/26 981,930
500 Yonkers, NY Indl Dev Agy Civic Fac Rev Cmnty Dev
Ppty Yonkers Inc Ser A (Prerefunded @
02/01/11)....................................... 6.625 02/01/26 563,750
-------------
98,311,842
-------------
NORTH CAROLINA 2.8%
8,300 North Carolina Muni Pwr Agy No 1 Catawba Elec
Rev Rfdg (MBIA Insd)............................ 6.000 01/01/12 9,168,014
7,605 North Carolina Muni Pwr Agy Ser A (MBIA Insd)... 5.250 01/01/20 8,026,241
-------------
17,194,255
-------------
OHIO 3.5%
300 Adams Cnty Hosp Fac Impt Rev Adams Cnty Hosp
Proj............................................ 6.250 09/01/20 301,653
3,950 Cincinnati, OH City Sch Dist Sch Impt (FSA
Insd)........................................... 5.250 06/01/18 4,206,869
2,485 Cleveland-Cuyahoga Cnty, OH Dev Port Auth Rev
Cleveland Bond Fd Ser B (a)..................... 5.375 05/15/18 2,530,799
1,000 Columbus, OH City Sch Dist Sch Fac Constr & Impt
(FSA Insd)...................................... 5.250 12/01/21 1,068,340
1,000 Cuyahoga Cnty, OH Hosp Fac Rev Canton
Inc Proj........................................ 7.500 01/01/30 1,102,180
2,350 Franklin Cnty, OH Convention Fac Auth Tax &
Lease Rev Antic Bds Rfdg (AMBAC Insd)........... 5.250 12/01/17 2,497,228
1,000 Lorain Cnty, OH Hosp Rev Catholic Hlthcare...... 5.375 10/01/30 1,039,830
2,000 Lorain, OH City Sch Dist Classroom Fac Impt
(MBIA Insd)..................................... 5.250 12/01/20 2,135,540
2,270 Montgomery Cnty, OH Hosp Rev Kettering Med Ctr
Impt & Rfdg (MBIA Insd)......................... 6.250 04/01/20 2,682,050
1,250 Ohio St Bldg Auth St Fac Admin Bldg Fd Proj Ser
A (FSA Insd).................................... 5.000 04/01/22 1,297,288
2,500 Ohio St Bldg Auth St Fac Adult Correction Ser A
Rfdg (FSA Insd)................................. 5.500 10/01/12 2,697,600
-------------
21,559,377
-------------
See Notes to Financial Statements 21
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
----------------------------------------------------------------------------------------------
OKLAHOMA 0.6%
$1,240 Kay Cnty, OK Home Fin Auth Rev Single Family Mtg
Ser A Rfdg (Escrowed to Maturity) (AMBAC
Insd)........................................... 7.000% 11/01/11 $ 1,421,090
1,250 Oklahoma City, OK Pub Ppty Auth Hotel Tax Rev
(FGIC Insd)..................................... 5.250 10/01/29 1,328,725
1,075 Oklahoma Hsg Fin Agy Single Family Rev Mtg Class
B (AMT) (GNMA Collateralized)................... 7.997 08/01/18 1,134,856
-------------
3,884,671
-------------
OREGON 0.9%
4,000 Oregon Hlth Sciences Univ Insd Ser A
(MBIA Insd)..................................... 5.250 07/01/22 4,234,880
1,500 Oregon St Dept Admin Ser C Rfdg (MBIA Insd)..... 5.250 11/01/17 1,588,170
-------------
5,823,050
-------------
PENNSYLVANIA 3.4%
385 Allegheny Cnty, PA San Auth Swr Rev
(MBIA Insd)..................................... 5.500 12/01/30 411,865
315 Crawford Cnty, PA Hosp Auth Sr Living Fac Rev
Wesbury Utd Methodist Cmnty (a)................. 5.875 08/15/10 329,607
275 Lehigh Cnty, PA Gen Purp Auth Rev First Mtg
Bible Fellowship Proj Ser A Rfdg (a)............ 5.100 12/15/06 275,473
295 Lehigh Cnty, PA Gen Purp Auth Rev First Mtg
Bible Fellowship Proj Ser A Rfdg (a)............ 5.250 12/15/07 296,764
210 Lehigh Cnty, PA Gen Purp Auth Rev First Mtg
Bible Fellowship Proj Ser A Rfdg................ 5.300 12/15/08 211,804
320 Lehigh Cnty, PA Gen Purp Auth Rev First Mtg
Bible Fellowship Proj Ser A Rfdg (a)............ 5.300 12/15/09 321,456
240 Lehigh Cnty, PA Gen Purp Auth Rev First Mtg
Bible Fellowship Proj Ser A Rfdg................ 5.400 12/15/10 240,658
400 Montgomery Cnty, PA Indl Dev Auth Rev Mtg
Whitemarsh Continuing Care Proj................. 6.125 02/01/28 422,560
1,000 Pennsylvania St Higher Ed Fac Auth Rev UPMC Hlth
Sys Ser A....................................... 6.250 01/15/18 1,089,390
1,000 Philadelphia, PA Auth Indl Dev Philadelphia Arpt
Sys Proj Ser A (AMT) (FGIC Insd)................ 5.125 07/01/19 1,032,490
2,600 Philadelphia, PA Auth Indl Rev Ser B (FSA
Insd)........................................... 5.500 10/01/16 2,817,074
3,200 Philadelphia, PA Gas Wks Rev 1998 Gen Ordinance
4th Ser (FSA Insd).............................. 5.250 08/01/19 3,364,160
4,305 Philadelphia, PA Redev Auth Rev Neighborhood
Transformation Ser A (FGIC Insd)................ 5.250 04/15/11 4,585,729
5,205 Pittsburgh, PA Ser A (AMBAC Insd)............... 5.500 09/01/17 5,565,915
-------------
20,964,945
-------------
RHODE ISLAND 0.4%
2,495 Rhode Island St Hlth & Ed Higher Ed Johnson &
Wales Rfdg (XLCA Insd).......................... 5.375 04/01/18 2,650,239
-------------
22 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
----------------------------------------------------------------------------------------------
SOUTH CAROLINA 3.9%
$2,000 Charleston Ed Excellence Fin Corp SC Rev Rols RR
II R 471 (Acquired 12/06/05, Cost $2,188,640)
(Inverse Fltg) (c).............................. 6.586% 12/01/26 $ 2,196,480
5,615 Charleston Ed Excellence Fin Corp SC Rev Rols RR
II R 515 (Acquired 02/10/06, Cost $6,415,145)
(Inverse Fltg) (AGC Insured) (c)................ 6.586 12/01/30 6,211,650
2,000 Rock Hill, SC Util Sys Rev Comb Ser A Impt &
Rfdg (FSA Insd)................................. 5.375 01/01/18 2,140,840
475 Rock Hill, SC Util Sys Rev Comb Ser C Rfdg (FSA
Insd)........................................... 5.125 01/01/13 499,672
1,235 Rock Hill, SC Util Sys Rev Comb Ser C Rfdg (FSA
Insd) (a)....................................... 5.250 01/01/15 1,304,827
2,500 South Carolina Jobs Econ Dev Auth Indl Rev Elec
& Gas Co Proj Ser A (AMBAC Insd)................ 5.200 11/01/27 2,631,325
9,250 South Carolina Trans Infrastructure Bk Rev Ser A
(AMBAC Insd).................................... 5.000 10/01/33 9,494,848
-------------
24,479,642
-------------
SOUTH DAKOTA 0.3%
1,905 Minnehaha Cnty, SD Ctf Ltd Tax (FSA Insd) (a)... 5.000 12/01/19 1,988,630
-------------
TENNESSEE 1.5%
400 Elizabethton, TN Hlth & Ed Fac Brd Rev Hosp
First Mtg Ser B Impt & Rfdg..................... 8.000 07/01/33 468,720
400 Elizabethton, TN Hlth & Ed Fac Brd Rev Hosp Ser
B Impt & Rfdg (MBIA Insd)....................... 7.750 07/01/29 484,680
4,000 Johnson City, TN Hlth & Ed Fac Brd Hosp Rev
First Mtg Mtn St Hlth Ser A Rfdg (MBIA Insd).... 7.500 07/01/25 4,872,760
1,000 Metropolitan Nashville Arpt Auth TN Impt Ser A
Rfdg (FGIC Insd)................................ 6.600 07/01/14 1,125,660
1,500 Shelby Cnty, TN Hlth Ed & Hsg Fac Brd Rev
Trezevant Manor Proj Ser A...................... 5.625 09/01/26 1,488,750
630 Tennessee Hsg Dev Agy Home Ownership Pgm 2-A
(AMT)........................................... 5.700 07/01/31 632,029
-------------
9,072,599
-------------
TEXAS 9.8%
1,130 Alliance Arpt Auth Inc TX Spl Fac Rev Fedex Corp
Proj Rfdg (AMT) (f)............................. 4.850 04/01/21 1,120,836
1,000 Brazos Cnty, TX Hlth Fac Dev Oblig Grp.......... 5.375 01/01/32 1,031,950
2,500 Coastal Bend Hlth Fac Dev, TX Ser C (Inverse
Fltg) (Escrowed to Maturity) (AMBAC Insd)....... 7.978 11/15/13 3,072,200
2,420 Dallas Cnty, TX Cmnty College Dist Rev Fin Sys
(AMBAC Insd) (a)................................ 5.375 02/15/16 2,546,445
1,000 Dallas-Fort Worth, TX Intl Arpt Rev Jt Ser A
Impt & Rfdg (AMT) (FGIC Insd)................... 5.500 11/01/31 1,046,270
1,500 Fort Worth, TX Wtr & Swr Rev Impt & Rfdg........ 5.750 02/15/16 1,611,180
2,000 Harris Cnty, TX Toll Rd Sub Lien Rfdg........... 5.000 08/01/33 2,018,580
See Notes to Financial Statements 23
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
----------------------------------------------------------------------------------------------
TEXAS (CONTINUED)
$6,000 Harris Cnty-Houston, TX Sports Auth Spl Rev Jr
Lien Ser B Rfdg (MBIA Insd)..................... 5.250% 11/15/40 $ 6,210,840
1,000 Houston, TX Arpt Sys Rev Sub Lien Ser A (AMT)
(FSA Insd)...................................... 5.625 07/01/30 1,052,030
3,345 Houston, TX Hotel Occupancy Tax Convtn &
Entertnmnt Ser B (AMBAC Insd)................... 5.750 09/01/14 3,645,147
130 Houston, TX Pub Impt & Rfdg (FSA Insd).......... 5.750 03/01/15 139,944
10,000 Houston, TX Util Sys Rev First Lien Ser A Rfdg
(FSA Insd)...................................... 5.250 05/15/21 10,574,000
4,000 Houston, TX Util Sys Rev First Lien Ser A Rfdg
(FGIC Insd)..................................... 5.250 05/15/23 4,224,080
4,825 Lake Dallas, TX Indpt Sch Dist Sch Bldg Rfdg
(PSF Gtd)....................................... 5.000 08/15/37 4,928,159
3,860 Mabank, TX Indpt Sch Dist (PSF Gtd)............. 5.125 08/15/35 3,956,693
1,250 Matagorda Cnty, TX Navig Dist No 1 Rev Coll
Centerpoint Energy Proj Rfdg (Variable Rate
Coupon)......................................... 5.600 03/01/27 1,306,338
1,000 Mesquite, TX Hlth Fac Dev Corp Retirement Fac
Christian Care Ctr Ser A (Prerefunded
@ 02/15/10)..................................... 7.625 02/15/28 1,136,760
1,800 Metropolitan Hlth Fac Dev Corp TX Wilson N Jones
Mem Hosp Proj................................... 7.250 01/01/31 1,854,756
1,000 North Central, TX Hlth Fac Dev Corp Rev Hosp
Baylor Hlthcare Sys Proj Ser A.................. 5.125 05/15/29 1,012,600
4,000 North Central, TX Hlth Fac Dev Hosp Childrens
Med Ctr Dallas (AMBAC Insd)..................... 5.250 08/15/32 4,151,320
110 Pecos Cnty, TX Ctf Partn (Acquired 06/23/97,
Cost $110,400) (c).............................. 6.000 01/12/08 110,674
3,702 Region One Ed Svc Ctr Sub Tech Fac Proj
(Acquired 12/30/97, Cost $3,861,560) (c)........ 6.590 12/15/17 3,898,461
80 Texas Muni Pwr Agy Rev (Escrowed to Maturity)
(MBIA Insd)..................................... * 09/01/15 53,017
490 Texas St Pub Ppty Fin Corp Rev Mental Hlth &
Retardation Rfdg (FSA Insd)..................... 5.500 09/01/13 492,568
-------------
61,194,848
-------------
VERMONT 0.4%
2,300 University VT & ST Agric College (MBIA Insd).... 5.000 10/01/40 2,361,663
-------------
VIRGINIA 1.3%
1,320 Fairfax Cnty, VA Ctf Part....................... 5.300 04/15/23 1,396,520
1,340 Richmond, VA (FSA Insd)......................... 5.500 01/15/10 1,424,581
2,750 Tobacco Settlement Fin Corp VA.................. 5.625 06/01/37 2,812,673
2,590 Tobacco Settlement Fin Corp VA Asset Bkd........ 5.500 06/01/26 2,652,186
-------------
8,285,960
-------------
24 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
----------------------------------------------------------------------------------------------
WASHINGTON 3.7%
$5,000 Bellevue, WA Convention Ctr Auth Spl Oblig Rev
Rfdg (MBIA Insd)................................ * 02/01/24 $ 2,116,500
3,000 Clark Cnty, WA Pub Util Dist No. 001 Gen Sys Rev
Rfdg (FSA Insd)................................. 5.625% 01/01/12 3,182,790
5,000 Cowlitz Cnty, WA Spl Swr Rev CSOB Wastewtr
Treatment Rfdg (FGIC Insd)...................... 5.500 11/01/19 5,547,550
3,000 Energy Northwest WA Elec Rev Proj No 3 Ser A
Rfdg (FSA Insd)................................. 5.500 07/01/18 3,226,170
5,000 King Cnty, WA Ser B Rfdg (MBIA Insd)............ 5.250 01/01/34 5,141,850
2,000 Port Seattle, WA Rev Ser B (AMT) (MBIA Insd).... 5.625 02/01/24 2,105,860
1,345 Tacoma, WA Elec Sys Rev Ser A Rfdg (FSA Insd)... 5.750 01/01/15 1,463,952
-------------
22,784,672
-------------
WEST VIRGINIA 1.1%
6,550 Harrison Cnty, WV Cnty Cmnty Solid Waste Disp
Rev Potomac Edison Co Ser A (AMT) (MBIA Insd)
(a)............................................. 6.875 04/15/22 6,566,637
-------------
WISCONSIN 0.9%
5,000 Wisconsin St Hlth & Ed Fac Auth Mercy Hlth Sys
Corp (AMBAC Insd)............................... 5.500 08/15/25 5,253,300
400 Wisconsin St Hlth & Ed Fac Auth Rev Beaver Dam
Cmnty Hosp Inc Ser A............................ 6.000 08/15/19 417,228
-------------
5,670,528
-------------
GUAM 1.0%
6,000 Guam Pwr Auth Rev Ser A (AMBAC Insd)............ 5.250 10/01/34 6,272,400
-------------
PUERTO RICO 1.1%
2,000 Puerto Rico Muni Fin Agy Ser A (FSA Insd)....... 5.250 08/01/20 2,134,460
4,500 Puerto Rico Pub Bldg Auth Rev Govt Fac Ser I.... 5.250 07/01/33 4,675,365
-------------
6,809,825
-------------
TOTAL MUNICIPAL BONDS 150.1%................................................. 935,096,608
CONVERTIBLE CORPORATE OBLIGATION 0.0%
127 UAL Corp. ...................................... 5.000 01/25/21 131,680
-------------
TOTAL LONG-TERM INVESTMENTS 150.1%
(Cost $902,292,084)......................................................... 935,228,288
See Notes to Financial Statements 25
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
DESCRIPTION VALUE
--------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS 0.2%
(Cost $1,135,000)............................................................... $ 1,135,000
-------------
TOTAL INVESTMENTS 150.3%
(Cost $903,427,084)............................................................. 936,363,288
OTHER ASSETS IN EXCESS OF LIABILITIES 1.9%....................................... 11,836,670
PREFERRED SHARES (INCLUDING ACCRUED DISTRIBUTIONS) (52.2%)....................... (325,333,382)
-------------
NET ASSETS APPLICABLE TO COMMON SHARES 100.0%.................................... $ 622,866,576
=============
Percentages are calculated as a percentage of net assets applicable to common
shares.
* Zero coupon bond
(a) The Trust owns 100% of the outstanding bond issuance.
(b) All or a portion of these securities have been physically segregated in
connection with open futures contracts.
(c) These securities are restricted and may be resold only in transactions
exempt from registration which are normally those transactions with
qualified institutional buyers. Restricted securities comprise 7.7% of net
assets applicable to common shares.
(d) 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.
(e) Security is a "step-up" bond where the coupon increases or steps up at a
predetermined date.
(f) Securities purchased on a when-issued or delayed delivery basis.
ACA--American Capital Access
AGC--AGC Insured Custody Certificates
AMBAC--AMBAC Indemnity Corp.
AMT--Alternative Minimum Tax
Comwth Gtd--Commonwealth of Puerto Rico
FGIC--Financial Guaranty Insurance Co.
FSA--Financial Security Assurance Inc.
GNMA--Government National Mortgage Association
MBIA--Municipal Bond Investors Assurance Corp.
PSF--Public School Fund
Radian--Radian Asset Assurance
XLCA--XL Capital Assurance Inc.
26 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
FUTURES CONTRACTS OUTSTANDING AS OF APRIL 30, 2006:
UNREALIZED
APPRECIATION/
CONTRACTS DEPRECIATION
SHORT CONTRACTS:
U.S. Treasury Notes 5-Year Futures June 06 (Current Notional
Value of $104,156 per contract)........................... 601 $351,856
=== ========
SWAP AGREEMENTS OUTSTANDING AS OF APRIL 30, 2006:
INTEREST RATE SWAPS
PAY/
RECEIVE NOTIONAL UNREALIZED
FLOATING FIXED EXPIRATION AMOUNT APPRECIATION/
COUNTERPARTY FLOATING RATE INDEX RATE RATE DATE (000) DEPRECIATION
JP Morgan Chase Bank,
N.A. ............... USD-BMA Municipal
Swap Index Receive 4.375% 07/11/26 $ 9,250 $ 9,441
JP Morgan Chase Bank,
N.A. ............... USD-BMA Municipal
Swap Index Receive 4.137 06/28/26 10,330 299,088
-------------
$308,529
=============
See Notes to Financial Statements 27
VAN KAMPEN MUNICIPAL TRUST
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
April 30, 2006 (Unaudited)
ASSETS:
Total Investments (Cost $903,427,084)....................... $936,363,288
Cash........................................................ 1,113,811
Receivables:
Interest.................................................. 13,884,064
Investments Sold.......................................... 225,315
Swap Contracts.............................................. 308,529
Other....................................................... 11,375
------------
Total Assets............................................ 951,906,382
------------
LIABILITIES:
Payables:
Investments Purchased..................................... 2,130,000
Investment Advisory Fee................................... 429,336
Income Distributions--Common Shares....................... 124,137
Variation Margin on Futures............................... 93,906
Other Affiliates.......................................... 29,668
Trustees' Deferred Compensation and Retirement Plans........ 753,119
Accrued Expenses............................................ 146,258
------------
Total Liabilities....................................... 3,706,424
Preferred Shares (including accrued distributions).......... 325,333,382
------------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $622,866,576
============
NET ASSET VALUE PER COMMON SHARE ($622,866,576 divided by
39,379,538 shares outstanding)............................ $ 15.82
============
NET ASSETS CONSIST OF:
Common Shares ($.01 par value with an unlimited number of
shares authorized, 39,379,538 shares issued and
outstanding).............................................. $ 393,795
Paid in Surplus............................................. 588,714,519
Net Unrealized Appreciation................................. 33,596,589
Accumulated Undistributed Net Investment Income............. 2,416,330
Accumulated Net Realized Loss............................... (2,254,657)
------------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $622,866,576
============
PREFERRED SHARES ($.01 par value, authorized 100,000,000
shares, 13,000 issued with liquidation preference of
$25,000 per share)........................................ $325,000,000
============
NET ASSETS INCLUDING PREFERRED SHARES....................... $947,866,576
============
28 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL TRUST
FINANCIAL STATEMENTS continued
Statement of Operations
For the Six Months Ended April 30, 2006 (Unaudited)
INVESTMENT INCOME:
Interest.................................................... $23,621,956
-----------
EXPENSES:
Investment Advisory Fee..................................... 2,609,846
Preferred Share Maintenance................................. 433,862
Trustees' Fees and Related Expenses......................... 73,660
Legal....................................................... 49,526
Custody..................................................... 33,837
Other....................................................... 320,748
-----------
Total Expenses.......................................... 3,521,479
Less Credit Earned on Cash Balances..................... 213
-----------
Net Expenses............................................ 3,521,266
-----------
NET INVESTMENT INCOME....................................... $20,100,690
===========
REALIZED AND UNREALIZED GAIN/LOSS:
Realized Gain/Loss:
Investments............................................... $ 1,692,680
Futures................................................... 2,172,526
-----------
Net Realized Gain........................................... 3,865,206
-----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 39,214,252
-----------
End of the Period:
Investments............................................. 32,936,204
Futures................................................. 351,856
Swap Contracts.......................................... 308,529
-----------
33,596,589
-----------
Net Unrealized Depreciation During the Period............... (5,617,663)
-----------
NET REALIZED AND UNREALIZED LOSS............................ $(1,752,457)
===========
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS..................... $(5,643,538)
===========
NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM
OPERATIONS................................................ $12,704,695
===========
See Notes to Financial Statements 29
VAN KAMPEN MUNICIPAL TRUST
FINANCIAL STATEMENTS continued
Statements of Changes in Net Assets (Unaudited)
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2006 OCTOBER 31, 2005
-------------------------------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income................................. $ 20,100,690 $ 37,769,331
Net Realized Gain..................................... 3,865,206 11,241,406
Net Unrealized Depreciation During the Period......... (5,617,663) (27,475,654)
Distributions to Preferred Shareholders:
Net Investment Income............................... (3,595,071) (6,655,981)
Net Realized Gain................................... (2,048,467) -0-
------------ ------------
Change in Net Assets Applicable to Common Shares from
Operations.......................................... 12,704,695 14,879,102
Distributions to Common Shareholders:
Net Investment Income............................... (16,145,614) (32,546,246)
Net Realized Gain................................... (9,573,166) -0-
------------ ------------
NET CHANGE IN NET ASSETS APPLICABLE TO COMMON SHARES
FROM INVESTMENT ACTIVITIES.......................... (13,014,085) (17,667,144)
FROM CAPITAL TRANSACTIONS:
Proceeds from Common Shares Acquired Through Merger... -0- 49,914,471
------------ ------------
TOTAL INCREASE/DECREASE IN NET ASSETS APPLICABLE TO
COMMON SHARES....................................... (13,014,085) 32,247,327
NET ASSETS APPLICABLE TO COMMON SHARES:
Beginning of the Period............................... 635,880,661 603,633,334
------------ ------------
End of the Period (Including accumulated undistributed
net investment income of $2,416,330 and
$2,056,325, respectively)........................... $622,866,576 $635,880,661
============ ============
30 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL TRUST
FINANCIAL HIGHLIGHTS (UNAUDITED)
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE
TRUST OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31, 2003
APRIL 30, ------------------------------------------------
2006 2005 2004 2003 2002 (g) 2001
-------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF THE PERIOD....... $ 16.15 $ 16.60 $ 16.25 $ 16.12 $ 16.07 $ 14.91
------- ------- ------- ------- ------- -------
Net Investment Income......................... .51(a) 1.02 1.03 1.02 1.06 1.13
Net Realized and Unrealized Gain/Loss......... (.05) (.41) .37 .13 .01 1.12
Common Share Equivalent of Distributions Paid
to Preferred Shareholders:
Net Investment Income....................... (.09) (.18) (.09) (.08) (.11) (.27)
Net Realized Gain........................... (.05) -0- -0-(f) -0- -0- -0-
------- ------- ------- ------- ------- -------
Total from Investment Operations............... .32 .43 1.31 1.07 .96 1.98
Distributions Paid to Common Shareholders:
Net Investment Income....................... (.41) (.88) (.94) (.94) (.91) (.82)
Net Realized Gain........................... (.24) -0- (.02) -0- -0- -0-
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF THE PERIOD............. $ 15.82 $ 16.15 $ 16.60 $ 16.25 $ 16.12 $ 16.07
======= ======= ======= ======= ======= =======
Common Share Market Price at End of the
Period........................................ $ 14.35 $ 14.02 $ 14.90 $ 14.57 $ 14.30 $ 13.79
Total Return (b)............................... 7.11%* 0.01% 9.15% 8.60% 10.49% 15.97%
Net Assets Applicable to Common Shares at End
of the Period (In millions)................... $ 622.9 $ 635.9 $ 603.6 $ 590.9 $ 586.2 $ 584.4
Ratio of Expenses to Average Net Assets
Applicable to Common Shares (c)............... 1.12% 1.06% 1.19% 1.23% 1.35% 1.55%
Ratio of Net Investment Income to Average Net
Assets Applicable to Common Shares (c)........ 6.41% 6.21% 6.24% 6.28% 6.70% 7.26%
Portfolio Turnover............................. 17%* 33% 19% 24% 38% 28%
SUPPLEMENTAL RATIOS:
Ratio of Expenses to Average Net Assets
Including Preferred Shares (c)................ .74% .71% .79% .81% .89% 1.01%
Ratio of Net Investment Income to Average Net
Assets Applicable to Common Shares (d)........ 5.27% 5.12% 5.70% 5.77% 5.98% 5.51%
SENIOR SECURITIES:
Total Preferred Shares Outstanding............. 13,000 13,000 12,000 12,000 12,000 12,000
Asset Coverage Per Preferred Share (e)......... $72,938 $73,933 $75,312 $74,245 $73,861 $73,700
Involuntary Liquidating Preference Per
Preferred Share............................... $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
Average Market Value Per Preferred Share....... $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
* Non-Annualized
(a) Based on average shares outstanding.
(b) Total return assumes an investment at the common share market price at the
beginning of the period indicated, reinvestment of all distributions for the
period in accordance with the Trust's dividend reinvestment plan, and sale
of all shares at the closing common share market price at the end of the
period indicated.
(c) Ratios do not reflect the effect of dividend payments to preferred
shareholders.
(d) Ratios reflect the effect of dividend payments to preferred shareholders.
(e) Calculated by subtracting the Trust's total liabilities (not including the
preferred shares) from the Trust's total assets and dividing this by the
number of preferred shares outstanding.
(f) Amount is less than $0.01 per share.
(g) As required, effective November 1, 2001, the Trust has adopted the
provisions of the AICPA Audit and Accounting Guide for Investment Companies
and began accreting market discount on fixed income securities. The effect
of this change for the year ended October 31, 2002 was to increase net
investment income per share by $.01, decrease net realized and unrealized
gains and losses per share by $.01 and increase the ratio of net investment
income to average net assets applicable to common shares from 6.69% to
6.70%. Per share, ratios and supplemental data for periods prior to October
31, 2002 have not been restated to reflect this change in presentation.
See Notes to Financial Statements 31
VAN KAMPEN MUNICIPAL TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2006 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen Municipal Trust (the "Trust") is registered as a diversified,
closed-end management investment company under the Investment Company Act of
1940 (the "1940 Act"), as amended. The Trust's investment objective is to seek
to provide a high level of current income exempt from federal income tax,
consistent with preservation of capital. The Trust will invest in a portfolio
consisting substantially of municipal obligations rated investment grade at the
time of investment, but may invest up to 20% of its assets in unrated securities
which are believed to be of comparable quality to those rated investment grade.
The Trust commenced investment operations on September 27, 1991.
The following is a summary of significant accounting policies consistently
followed by the Trust 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 Municipal bonds are valued by independent pricing services
or dealers using the mean of the bid and asked prices or, in the absence of
market quotations, at fair value based upon yield data relating to municipal
bonds with similar characteristics and general market conditions. Securities
which are not valued by independent pricing services or dealers are valued at
fair value using procedures established in good faith by the Board of Trustees.
Futures contracts are valued at the settlement price established each day on the
exchange on which they are traded. 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
Trust 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 Trust 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 April 30, 2006, the Trust had $2,130,000 of when-issued or
delayed delivery purchase commitments.
C. INVESTMENT INCOME Interest income is recorded on an accrual basis. Bond
premium is amortized and discount is accreted over the expected life of each
applicable security.
D. FEDERAL INCOME TAXES It is the Trust's policy to comply with the requirements
of Subchapter M of the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all of its taxable income to its
shareholders. Therefore, no provision for federal income taxes is required. The
Trust 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.
During the fiscal year ended October 31, 2005, the Trust utilized capital losses
carried forward of $1,499,019.
32
VAN KAMPEN MUNICIPAL TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2006 (UNAUDITED) continued
At October 31, 2005, the Trust had an accumulated capital loss carry forward
for tax purposes of $4,301,321, which will expire according to the following
schedule.
AMOUNT EXPIRATION
$ 468,317................................................... October 31, 2008
929,222................................................... October 31, 2009
2,903,782.................................................. October 31, 2011
The capital loss carryforward above was acquired due to a merger with
another regulated investment company, please see footnote 3 for details. At
April 30, 2006, the cost and related gross unrealized appreciation and
depreciation are as follows:
Cost of investments for tax purposes........................ $903,021,950
============
Gross tax unrealized appreciation........................... $ 35,855,577
Gross tax unrealized depreciation........................... (2,514,239)
------------
Net tax unrealized appreciation on investments.............. $ 33,341,338
============
E. DISTRIBUTION OF INCOME AND GAINS The Trust declares and pays monthly
dividends from net investment income to common shareholders. Net realized gains,
if any, are distributed annually on a pro rata basis to common and preferred
shareholders. Distributions from net realized gains for book purposes may
include short-term capital gains and gains on futures transactions. All
short-term capital gains and a portion of futures gains are included as ordinary
income for tax purposes.
The tax character of distributions paid during the year ended October 31,
2005 was as follows:
Distribution paid from:
Ordinary income........................................... $ 202,501
Tax-exempt income......................................... 38,881,107
Long-term capital gain.................................... -0-
-----------
$39,083,608
===========
As of October 31, 2005, the components of distributable earnings on a tax
basis were as follows:
Undistributed ordinary income............................... $ 231,819
Undistributed tax-exempt income............................. 2,418,330
Undistributed long-term capital gain........................ 11,619,205
Net realized gains or losses may differ for financial and tax reporting
purposes primarily as a result deferral of losses relating to wash sale
transactions.
F. EXPENSE REDUCTION During the six months ended April 30, 2006, the Trust's
custody fee was reduced by $213 as a result of credits earned on cash balances.
33
VAN KAMPEN MUNICIPAL TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2006 (UNAUDITED) continued
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of the Trust's Investment Advisory Agreement, Van Kampen Asset
Management (the "Adviser") provides investment advice and facilities to the
Trust for an annual fee payable monthly of .55% of the average daily net assets
of the Trust.
For the six months ended April 30, 2006, the Trust recognized expenses of
approximately $25,300 representing legal services provided by Skadden, Arps,
Slate, Meagher & Flom LLP, of which a trustee of the Trust is a partner of such
firm and he and his law firm provide legal services as legal counsel to the
Trust.
Under separate Legal Services, Accounting Services and Chief Compliance
Officer (CCO) Employment agreements, the Adviser provides accounting and legal
services and the CCO provides compliance services to the Trust. The costs of
these services are allocated to each trust. For the six months ended April 30,
2006, the Trust recognized expenses of approximately $46,400, representing Van
Kampen Investments Inc.'s or its affiliates' (collectively "Van Kampen") cost of
providing accounting and legal services to the Trust, as well as, the salary,
benefits and related costs of the CCO and related support staff paid by Van
Kampen. Services provided pursuant to the Legal Services agreement are reported
as part of "Legal" expenses on the Statement of Operations. Services provided
pursuant to the Accounting Services and CCO Employment agreement are reported as
part of "Other" expenses on the Statement of Operations.
Certain officers and trustees of the Trust are also officers and directors
of Van Kampen. The Trust does not compensate its officers or trustees who are
also officers of Van Kampen.
The Trust 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 to a
later date. 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 Trust.
The maximum annual benefit per trustee under the plan is $2,500.
3. CAPITAL TRANSACTIONS
At April 30, 2006 and October 31, 2005, paid transactions in common shares were
as follows:
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2006 OCTOBER 31, 2005
Beginning Shares........................................ 39,379,538 36,365,393
Shares Acquired Through Merger.......................... -0- 3,014,145
---------- ----------
Ending Shares........................................... 39,379,538 39,379,538
========== ==========
On August 26, 2005, the Trust acquired all of the assets and liabilities of
the Van Kampen Investment Grade Municipal Income Trust ("Investment Grade")
through a tax free reorganization approved by Investment Grade's shareholders on
August 12, 2005. The Trust issued 3,014,145 common shares with a net asset value
of 49,914,471 and 1,000 Auction Preferred Shares (APS) with a liquidation value
of $25,000,000 in exchange for Investment Grade's net assets. The shares of
Investment Grade were converted into Trust shares at a ratio 0.622886 to 1 and 1
to 1, for common shares and APS, respectively. Net unrealized appreciation of
Investment Grade as of August 26, 2005 was $4,753,945. The Trust assumed
34
VAN KAMPEN MUNICIPAL TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2006 (UNAUDITED) continued
Investment Grade's book to tax accretion differences, which resulted in a
$20,691 increase to accumulated undistributed net investment income and a
corresponding decrease to net unrealized appreciation. Combined net assets on
the day of reorganization were $651,946,419. Included in these net assets was a
capital loss carryforward of $4,870,260, of which all can be utilized by the
acquiring Trust, deferred compensation and pension of $229,350, non-accrual
interest income of $10,844 and gains or losses recognized for tax purposes on
open future transactions at merger date of $60,183, all carried forward from the
Investment Grade Municipal Income Trust.
4. INVESTMENT TRANSACTIONS
During the period, the cost of purchases and proceeds from sales of investments,
excluding short-term investments, were $160,365,991 and $181,006,270,
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.
In order to seek to manage the interest rate exposure of the Trust's
portfolio in a changing interest rate environment, the Trust may purchase or
sell financial futures contracts or engage in transactions involving interest
rate swaps, caps, floors or collars. The Trust expects to enter into these
transactions primarily as a hedge against anticipated interest rate or
fixed-income market changes, for duration management or for risk management
purposes, but may also enter into these transactions to generate additional
income. All of the Trust's portfolio holdings, including derivative instruments,
are marked to market each day with the change in value reflected in the
unrealized appreciation/depreciation. Upon disposition, a realized gain or loss
is recognized accordingly, except when taking delivery of a security underlying
a futures contract. In this instance, the recognition of gain or loss is
postponed until the disposal of the security underlying the futures contract.
Summarized below are the specific types of derivative financial instruments
used by the Trust.
A. FUTURES CONTRACTS A futures contract is an agreement involving the delivery
of a particular asset on a specified future date at an agreed upon price. The
Trust generally invests in exchange traded futures contracts on U.S. Treasury
Bonds and Notes and typically closes the contract prior to the delivery date.
The contracts are generally used to manage the portfolio's effective maturity
and duration. Upon entering into futures contracts, the Trust maintains, an
amount of cash or liquid securities with a value equal to a percentage of the
contract amount with either a futures commission merchant pursuant to rules and
regulations promulgated in the 1940 Act, as amended, or with its custodian in an
account in the broker's name. This amount is known as initial margin. During the
period the futures contract is open, payments are received from or made to the
broker based upon changes in the value of the contract (the variation margin).
The risk of loss associated with a futures contract is in excess of the
variation margin reflected on the Statement of Assets and Liabilities.
35
VAN KAMPEN MUNICIPAL TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2006 (UNAUDITED) continued
Transactions in futures contracts for the six months ended April 30, 2006,
were as follows:
CONTRACTS
Outstanding at October 31, 2005............................. 1,655
Futures Opened.............................................. 2,752
Futures Closed.............................................. (3,806)
------
Outstanding at April 30, 2006............................... 601
======
B. INDEXED SECURITY An inverse floating rate security is one where the coupon is
inversely indexed to a short-term floating interest rate multiplied by a
specified factor. As the floating rate rises, the coupon is reduced. Conversely
as the floating rate declines, the coupon is increased. The price of these
securities may be more volatile than the price of a comparable fixed rate
security. The instruments are typically used by the Trust to enhance the yield
of the portfolio. These instruments are identified in the Portfolio of
Investments.
C. INTEREST RATE SWAPS The Trust may enter into interest rate swaps primarily to
preserve a return or spread on a particular investment or portion of its
portfolio, as a duration management technique or to protect against any increase
in the price of securities the Trust anticipates purchasing at a later date.
Interest rate swaps are contractual agreements to exchange periodic interest
payment streams calculated on a predetermined notional principal amount.
Interest rate swaps generally involve one party paying a fixed interest rate and
the other party paying a variable rate. The Trust will usually enter into swaps
on a net basis, i.e., the two payment streams are netted out in a cash
settlement on the payment date or dates specified in the instrument, with the
Trust receiving or paying, as the case may be, only the net amount of the two
payments. The Trust accrues the net amount with respect to each swap on a daily
basis. This net amount is recorded within unrealized appreciation/ depreciation
on swap contracts. Upon cash settlement of the periodic payments, the net amount
is recorded as realized gain/loss on swap contracts on the Statement of
Operations. Risks may arise as a result of the potential inability of the
counterparties to meet the terms of their contracts. If there is a default by
the counterparty, the Trust will have contractual remedies pursuant to the
agreements related to the transaction.
6. PREFERRED SHARES
The Trust has outstanding 13,000 APS in four series of 3,000 shares each and one
series of 1,000 shares. Dividends are cumulative and the dividend rate is
periodically reset through an auction process. The dividend periods for Series A
and C are generally 7 days. The dividend periods for Series B, D and E are 28
days. The average rate in effect on April 30, 2006 was 3.56%. During the six
months ended April 30, 2006, the rates ranged from 2.310% to 6.15%.
The Trust pays annual fees equivalent to .25% of the preferred share
liquidation value for the remarketing efforts associated with the preferred
auctions. These fees are included as a component of "Preferred Share
Maintenance" expense in the Statement of Operations.
The APS are redeemable at the option of the Trust in whole or in part at the
liquidation value of $25,000 per share plus accumulated and unpaid dividends.
The Trust is subject to certain asset coverage tests, and the APS are subject to
mandatory redemption if the tests are not met.
36
VAN KAMPEN MUNICIPAL TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2006 (UNAUDITED) continued
7. INDEMNIFICATIONS
The Trust enters into contracts that contain a variety of indemnifications. The
Trust's maximum exposure under these arrangements is unknown. However, the Trust
has not had prior claims or losses pursuant to these contracts and expects the
risk of loss to be remote.
37
VAN KAMPEN MUNICIPAL TRUST
BOARD OF TRUSTEES, OFFICERS AND IMPORTANT ADDRESSES
BOARD OF TRUSTEES
DAVID C. ARCH
JERRY D. CHOATE
ROD DAMMEYER
LINDA HUTTON HEAGY
R. CRAIG KENNEDY
HOWARD J KERR
JACK E. NELSON
HUGO F. SONNENSCHEIN
WAYNE W. WHALEN* - Chairman
SUZANNE H. WOOLSEY
OFFICERS
RONALD E. ROBISON
President and Principal Executive Officer
DENNIS SHEA
Vice President
J. DAVID GERMANY
Vice President
AMY R. DOBERMAN
Vice President
STEFANIE V. CHANG
Vice President and Secretary
JOHN L. SULLIVAN
Chief Compliance Officer
PHILLIP G. GOFF
Chief Financial Officer and Treasurer
INVESTMENT ADVISER
VAN KAMPEN ASSET MANAGEMENT
1221 Avenue of the Americas
New York, New York 10020
CUSTODIAN
STATE STREET BANK
AND TRUST COMPANY
One Lincoln Street
Boston, Massachusetts 02111
TRANSFER AGENT
COMPUTERSHARE TRUST COMPANY, N.A.
c/o Computershare Investor Services
P.O. Box 43010
Providence, Rhode Island 02940-3010
LEGAL COUNSEL
SKADDEN, ARPS, SLATE,
MEAGHER & FLOM LLP
333 West Wacker Drive
Chicago, Illinois 60606
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
DELOITTE & TOUCHE LLP
111 South Wacker Drive
Chicago, Illinois 60606
* "Interested persons" of the Trust, as defined in the Investment Company Act
of 1940, as amended.
38
Van Kampen Municipal Trust
An Important Notice Concerning Our U.S. Privacy Policy
We are required by federal law to provide you with a copy of our Privacy
Policy annually.
The following Policy applies to current and former individual clients of Van
Kampen Investments Inc., Van Kampen Asset Management, Van Kampen Advisors
Inc., Van Kampen Funds Inc., Van Kampen Investor Services Inc. and Van
Kampen Exchange Corp., as well as current and former individual investors in
Van Kampen mutual funds, unit investment trusts, and related companies.
This Policy is not applicable to partnerships, corporations, trusts or other
non-individual clients or account holders, nor is this Policy applicable to
individuals who are either beneficiaries of a trust for which we serve as
trustee or participants in an employee benefit plan administered or advised
by us. This Policy is, however, applicable to individuals who select us to
be a custodian of securities or assets in individual retirement accounts,
401(k) accounts, 529 Educational Savings Accounts, accounts subject to the
Uniform Gifts to Minors Act, or similar accounts.
Please note that we may amend this Policy at any time, and will inform you
of any changes to this Policy as required by law.
WE RESPECT YOUR PRIVACY
We appreciate that you have provided us with your personal financial
information. We strive to maintain the privacy of such information while we
help you achieve your financial objectives. This Policy describes what
non-public personal information we collect about you, why we collect it, and
when we may share it with others.
We hope this Policy will help you understand how we collect and share
non-public personal information that we gather about you. Throughout this
Policy, we refer to the non-public information that personally identifies
you or your accounts as "personal information."
1. WHAT PERSONAL INFORMATION DO WE COLLECT ABOUT YOU?
To serve you better and manage our business, it is important that we collect
and maintain accurate information about you. We may obtain this information
from applications and other forms you submit to us, from your dealings with
us, from consumer reporting agencies, from our Web sites and from third
parties and other sources.
(continued on next page)
Van Kampen Municipal Trust
An Important Notice Concerning Our U.S. Privacy Policy continued
For example:
-- We may collect information such as your name, address, e-mail address,
telephone/fax numbers, assets, income and investment objectives through
applications and other forms you submit to us.
-- We may obtain information about account balances, your use of
account(s) and the types of products and services you prefer to receive
from us through your dealings and transactions with us and other
sources.
-- We may obtain information about your creditworthiness and credit
history from consumer reporting agencies.
-- We may collect background information from and through third-party
vendors to verify representations you have made and to comply with
various regulatory requirements.
-- If you interact with us through our public and private Web sites, we
may collect information that you provide directly through online
communications (such as an e-mail address). We may also collect
information about your Internet service provider, your domain name,
your computer's operating system and Web browser, your use of our Web
sites and your product and service preferences, through the use of
"cookies." "Cookies" recognize your computer each time you return to
one of our sites, and help to improve our sites' content and
personalize your experience on our sites by, for example, suggesting
offerings that may interest you. Please consult the Terms of Use of
these sites for more details on our use of cookies.
2. WHEN DO WE DISCLOSE PERSONAL INFORMATION WE COLLECT ABOUT YOU?
To provide you with the products and services you request, to serve you
better and to manage our business, we may disclose personal information we
collect about you to our affiliated companies and to non-affiliated third
parties as required or permitted by law.
A. INFORMATION WE DISCLOSE TO OUR AFFILIATED COMPANIES. We do not disclose
personal information that we collect about you to our affiliated companies
except to enable them to provide services on our behalf or as otherwise
required or permitted by law.
B. INFORMATION WE DISCLOSE TO THIRD PARTIES. We do not disclose personal
information that we collect about you to non-affiliated third parties except
to enable them to provide services on our behalf, to perform joint marketing
agreements with
(continued on back)
Van Kampen Municipal Trust
An Important Notice Concerning Our U.S. Privacy Policy continued
other financial institutions, or as otherwise required or permitted by law.
For example, some instances where we may disclose information about you to
non-affiliated third parties include: for servicing and processing
transactions, to offer our own products and services, to protect against
fraud, for institutional risk control, to respond to judicial process or to
perform services on our behalf. When we share personal information with
these companies, they are required to limit their use of personal
information to the particular purpose for which it was shared and they are
not allowed to share personal information with others except to fulfill that
limited purpose.
3. HOW DO WE PROTECT THE SECURITY AND CONFIDENTIALITY OF PERSONAL
INFORMATION WE COLLECT ABOUT YOU?
We maintain physical, electronic and procedural security measures to help
safeguard the personal information we collect about you. We have internal
policies governing the proper handling of client information. Third parties
that provide support or marketing services on our behalf may also receive
personal information, and we require them to adhere to confidentiality
standards with respect to such information.
Van Kampen Funds Inc.
1 Parkview Plaza
P.O. Box 5555
Oakbrook Terrace, IL 60181-5555
www.vankampen.com
Copyright (C)2006 Van Kampen Funds Inc. All rights reserved.
Member NASD/SIPC.
VKQ SAR 6/06
(VAN KAMPEN INVESTMENTS SHINE LOGO) RN06-01539P-Y04/06
Item 2. Code of Ethics.
Not applicable for semi-annual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable for semi-annual reports.
Item 6. Schedule of Investments.
Please refer to Item #1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable for semi-annual reports.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable for semi-annual reports.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. Controls and Procedures
(a) The 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-CSRS was recorded, processed, summarized and reported within the time periods
specified in the Securities and Exchange Commission's rules and forms, based
upon such officers' evaluation of these controls and procedures as of a date
within 90 days of the filing date of the report.
(b) There were no changes in the registrant's internal control over financial
reporting that occurred during the second fiscal quarter of the period covered
by this report that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting.
Item 12. Exhibits.
(1) Code of Ethics - Not applicable for semi-annual reports.
(2)(a) A certification for the Principal Executive Officer of the registrant is
attached hereto as part of EX-99.CERT.
(2)(b) A certification for the Principal Financial Officer of the registrant is
attached hereto as part of EX-99.CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Van Kampen Municipal Trust
By: /s/ Ronald E. Robison
---------------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: June 20, 2006
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
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Name: Ronald E. Robison
Title: Principal Executive Officer
Date: June 20, 2006
By: /s/ Phillip G. Goff
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Name: Phillip G. Goff
Title: Principal Financial Officer
Date: June 20, 2006