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 811-7868 Van Kampen Advantage Municipal Income Trust II -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) 1221 Avenue of the Americas, New York, New York 10020 -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Ronald Robison 1221 Avenue of the Americas, New York, New York 10020 -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 212-762-4000 Date of fiscal year end: 10/31 Date of reporting period: 4/30/06 Item 1. Reports 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 Advantage Municipal Income Trust II 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 THE 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). --------------------------------------------------------------------------------------- NOT FDIC INSURED OFFER NO BANK GUARANTEE MAY LOSE VALUE --------------------------------------------------------------------------------------- NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY NOT A DEPOSIT --------------------------------------------------------------------------------------- Performance Summary as of 4/30/06 ADVANTAGE MUNICIPAL INCOME TRUST II SYMBOL: VKI ------------------------------------------------------------ AVERAGE ANNUAL BASED ON BASED ON TOTAL RETURN NAV MARKET PRICE Since Inception (8/27/93) 6.39% 5.52% 10-year 7.81 8.62 5-year 7.91 8.93 1-year 3.81 4.30 6-month 2.67 3.93 ------------------------------------------------------------ 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 MUNICIPAL NAV MARKET PRICE BOND INDEX 2.67% 3.93% 1.56% -------------------------------------------------------------------- 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. Following our long-standing "relative value" discipline, we favored high quality bonds with good liquidity. (Liquid securities are those for which there is a robust market of purchasers and sellers.) Based on our in-depth proprietary research, we purchased bonds we believed to be attractively valued, and then sold them when they reached our return targets. We then invested the proceeds into bonds which we believed offered greater future total return prospects. Accordingly, we pared exposure to the uppermost credit tiers, and added to the trust's stake in higher-yielding investment-grade credits. Issues rated BBB represented 13 percent of the trust's long-term holdings at the close of the period. This decision served the trust well. As interest rates remained relatively low and investors sought income, the market continued to reward higher yielding credits. Our analysis had suggested that interest rates would continue to rise, with the yields of short-term bonds advancing more rapidly than those of long-term issues. Our sales focused on shorter maturity, pre-refunded bonds and on intermediate-term issues. We invested in longer maturity bonds, employing hedging strategies to mitigate interest rate volatility. Overall, we kept the trust's 3 duration (a measure of interest rate sensitivity) shorter than that of the Lehman benchmark. The trust remained well diversified across the major sectors municipal market, with a continued emphasis on essential services. As of the close of the period, hospitals, public education, and general purpose bonds represented the trust's largest sector weightings. Issues rated AA or higher represented approximately 76 percent of bonds at the close of the reporting period. During the reporting period, Van Kampen Municipal Opportunity Trust II and Van Kampen Value Municipal Income Trust were reorganized into Van Kampen Advantage Municipal Income Trust II. VKI'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 Fund's shares. In addition, we would like to remind you that the Trustees have approved a procedure whereby the Fund 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 66.1% AA/Aa 9.5 A/A 8.0 BBB/Baa 13.4 BB/Ba 0.2 B/B 0.3 Non-Rated 2.5 TOP FIVE SECTORS AS OF 4/30/06 Hospital 16.1% Public Education 10.3 General Purpose 10.0 Airports 8.4 Public Buildings 7.0 SUMMARY OF INVESTMENTS BY STATE CLASSIFICATION AS OF 4/30/06 California 15.4% Texas 8.4 Illinois 8.1 New York 6.8 Arizona 4.2 New Jersey 4.1 Florida 3.5 Missouri 3.4 Massachusetts 3.4 Louisiana 3.3 Tennessee 2.9 Puerto Rico 2.8 Colorado 2.7 Nevada 2.6 Georgia 2.6 Washington 2.5 Michigan 2.4 South Carolina 2.2 Ohio 1.9 Oregon 1.9 Indiana 1.8 Maryland 1.5 Hawaii 1.1 West Virginia 1.0 Alabama 1.0 Virginia 0.8 Pennsylvania 0.8 Kansas 0.7 Connecticut 0.7 Mississippi 0.7 Minnesota 0.6 District of Columbia 0.5 Wisconsin 0.4 Oklahoma 0.4 Nebraska 0.4 (continued on next page) 5 SUMMARY OF INVESTMENTS BY STATE CLASSIFICATION AS OF 4/30/06 (continued from previous page) Iowa 0.4 North Carolina 0.3 New Hampshire 0.3 Arkansas 0.3 Utah 0.3 South Dakota 0.2 Montana 0.2 Wyoming 0.2 New Mexico 0.1 Alaska 0.1 Kentucky 0.1 ----- Total Investments 100.0% 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 trust'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 ADVANTAGE MUNICIPAL INCOME TRUST II PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE ---------------------------------------------------------------------------------------------- MUNICIPAL BONDS 162.5% ALABAMA 1.6% $ 2,000 Birmingham Baptist Med Ctr AL Spl Care Fac Fin Auth Rev Baptist Hlth Sys Ser A....... 5.875% 11/15/24 $ 2,098,340 3,000 Birmingham Baptist Med Ctr AL Spl Care Fac Fin Auth Rev Baptist Hlth Sys Ser A....... 5.000 11/15/30 2,927,400 4,000 Jefferson Cnty, AL Ltd Oblig Sch Wt Ser A......................................... 5.250 01/01/23 4,189,960 4 Mobile, AL Indl Dev Brd Solid Waste Disp Rev Mobile Energy Svc Co Proj Rfdg........ 6.950 01/01/20 353 1,000 Valley, AL Spl Care Fac Fin Auth Rev Lanier Mem Hosp Ser A..................... 5.600 11/01/16 1,016,450 ------------- 10,232,503 ------------- ALASKA 0.2% 1,000 Alaska St Hsg Fin Corp Gen Hsg Ser A (FGIC Insd)..................................... 5.250 12/01/41 1,040,980 ------------- ARIZONA 6.8% 5,000 Arizona Sch Fac Brd Ctf Ser B (Prerefunded @ 09/01/13) (FGIC Insd)................... 5.250 09/01/18 5,406,500 3,000 Arizona St Transn Brd Hwy Rev Ser B....... 5.250 07/01/19 3,186,360 2,235 Arizona Tourism & Sports Auth Tax Rev Multipurp Stad Fac Ser A (MBIA Insd)...... 5.375 07/01/21 2,385,393 5,250 Arizona Tourism & Sports Auth Tax Rev Multipurp Stad Fac Ser A (MBIA Insd)...... 5.375 07/01/23 5,603,272 5,000 Glendale, AZ Indl Dev Auth John C Lincoln Hlth Ser B Rfdg........................... 5.000 12/01/37 4,956,600 4,500 Maricopa Cnty, AZ Hosp Rev Sun Hlth Corp...................................... 5.000 04/01/35 4,465,125 2,000 Phoenix, AZ Civic Impt Corp Arpt Rev Jr Lien (AMT) (FGIC Insd).................... 5.375 07/01/29 2,027,920 2,575 Pima Cnty, AZ Indl Dev Auth Indl Rev Lease Oblig Irvington Proj Tucson Ser A Rfdg (FSA Insd)................................ 7.250 07/15/10 2,591,119 2,685 South Campus Group LLC AZ Std Hsg Rev AZ St Univ South Campus Proj (MBIA Insd)..... 5.625 09/01/35 2,911,695 1,300 Tempe, AZ Excise Tax Rev Rfdg............. 5.250 07/01/18 1,386,632 9,000 University Med Ctr Corp AZ Hosp Rev....... 5.000 07/01/35 8,887,680 ------------- 43,808,296 ------------- ARKANSAS 0.5% 1,930 Arkansas St Cap Apprec College Svg........ * 06/01/16 1,236,860 2,000 Arkansas St Dev Fin Auth Rev St Agy Fac Donaghey Plaza Proj (FSA Insd)............ 5.000 06/01/34 2,051,420 ------------- 3,288,280 ------------- See Notes to Financial Statements 9 VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST II PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE ---------------------------------------------------------------------------------------------- CALIFORNIA 25.0% $ 6,000 Anaheim, CA Pub Fin Auth Lease Rev Cap Apprec Sub Pub Impt Proj Ser C (FSA Insd)..................................... * 09/01/19 $ 3,194,820 7,195 Anaheim, CA Pub Fin Auth Lease Rev Cap Apprec Sub Pub Impt Proj Ser C (FSA Insd)..................................... * 09/01/21 3,444,246 1,300 Anaheim, CA Pub Fin Auth Lease Rev Pub Impt Proj Ser C (FSA Insd)................ 6.000% 09/01/16 1,476,800 2,095 Bay Area Govt Assn CA Rev Tax Alloc CA Redev Pool Ser A (XLCA Insd).............. 5.250 09/01/35 2,206,873 3,000 California Cnty, CA Tob Securitization Agy Tob LA Cnty Sec (a)....................... 0/5.250 06/01/21 2,338,350 2,000 California Cnty, CA Tob Securitization Agy Tob Sonoma Cnty Corp Rfdg................. 5.125 06/01/38 1,950,700 2,050 California Cnty, CA Tob Securitization Agy Tob Merced Cnty Ser A Rfdg................ 5.125 06/01/38 1,999,467 1,000 California Cnty, CA Tob Securitization Agy Tob Merced Cnty Ser A Rfdg................ 5.250 06/01/45 986,050 6,750 California Ed Fac Auth Rev Pepperdine Univ Ser A Rfdg (FGIC Insd).................... 5.000 09/01/33 6,928,402 5,500 California Hlth Fac Fin Auth Rev Cedars Sinai Med Ctr Rfdg........................ 5.000 11/15/34 5,537,620 3,000 California Pollutn Ctl Fin Auth Solid Waste Disp Rev Waste Mgmt Inc Proj Ser C (AMT)..................................... 5.125 11/01/23 3,067,560 1,000 California St (AMBAC Insd)................ 5.125 10/01/27 1,024,140 10,000 California St (Prerefunded @ 03/01/10) (MBIA Insd) (b)........................... 5.500 03/01/17 10,749,600 2,000 California St Dept Wtr Res Pwr Ser A (Prerefunded @ 05/01/12).................. 6.000 05/01/15 2,256,300 3,000 California St Dept Wtr Res Pwr Ser A (Prerefunded @ 05/01/12).................. 5.875 05/01/16 3,365,310 2,345 California St Dept Wtr Res Pwr Ser A (Prerefunded @ 05/01/12) (XLCA Insd)...... 5.375 05/01/17 2,568,643 5,000 California St Pub Wks Brd Dept Gen Svc Cap East End Ser A (AMBAC Insd)............... 5.125 12/01/21 5,212,550 6,000 California St Pub Wks Brd Lease Rev Dept of Corrections St Prisons Ser A Rfdg (AMBAC Insd).............................. 5.250 12/01/13 6,523,500 4,000 California St Pub Wks Brd Lease Rev Dept of Corrections St Prisons Ser A Rfdg (AMBAC Insd).............................. 5.000 12/01/19 4,209,040 5,000 California St Pub Wks Brd Lease Rev Dept of Mental Hlth Coalinga Ser A............. 5.000 06/01/24 5,131,950 4,600 California St Pub Wks Brd Lease Rev Var Univ CA Proj Ser A Rfdg................... 5.500 06/01/10 4,861,234 5,905 California St Pub Wks Brd Lease Rev Var Univ CA Proj Ser A Rfdg................... 5.500 06/01/14 6,410,763 5,000 California St Rfdg........................ 5.000 02/01/19 5,139,300 10 See Notes to Financial Statements VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST II PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE ---------------------------------------------------------------------------------------------- CALIFORNIA (CONTINUED) $ 6,500 California Statewide Cmnty Dev Auth Rev Daughters of Charity Hlth Ser A........... 5.250% 07/01/30 $ 6,610,760 1,000 California Statewide Cmnty Dev Auth Rev Daughters of Charity Hlth Ser A........... 5.250 07/01/35 1,015,790 4,000 California Statewide Cmnty Dev Auth Rev Hlth Fac Adventist Hlth Ser A............. 5.000 03/01/30 4,018,200 2,000 Florin, CA Res Consv Dist Cap Impt Elk Grove Wtr Svc Ser A (MBIA Insd)........... 5.000 09/01/33 2,055,260 5,000 Foothill/Eastern Corridor Agy CA Toll Rd Rev Cap Apprec Rfdg (MBIA Insd)........... * 01/15/18 2,750,550 30,000 Foothill/Eastern Corridor Agy CA Toll Rd Rev Ser A Rfdg............................ * 01/15/22 12,264,000 3,350 Imperial Irr Dist CA Ctf Part Elec Sys Proj (FSA Insd) (b)....................... 5.250 11/01/19 3,555,690 3,950 Los Angeles, CA Dept Wtr & Pwr Ser A (FGIC Insd)..................................... 5.125 07/01/40 4,056,926 5,000 Los Angeles, CA Uni Sch Dist Ser A (FSA Insd)..................................... 5.250 07/01/20 5,311,200 5,500 Port Oakland, CA Ser L (AMT) (FGIC Insd)..................................... 5.000 11/01/32 5,571,555 9,000 Riverside Cnty, CA Asset Leasing Corp Leasehold Rev Riverside Cnty Hosp Proj (MBIA Insd)............................... * 06/01/21 4,315,590 13,880 San Joaquin Hills, CA Transn Corridor Agy Toll Rd Rev Cap Apprec Ser A Rfdg (MBIA Insd)..................................... * 01/15/28 4,759,868 4,200 Tobacco Securitization Auth Northn CA Tob Settlement Rev Ser A1..................... 5.375 06/01/38 4,229,820 4,300 Tobacco Securitization Auth Northn CA Tob Settlement Rev Ser A1..................... 5.500 06/01/45 4,350,353 2,720 Washington, CA Uni Sch Dist Yolo Cnty Election 2004 Ser A (FGIC Insd) (b)....... 5.250 08/01/19 2,895,522 3,070 Washington, CA Uni Sch Dist Yolo Cnty Election 2004 Ser A (FGIC Insd) (b)....... 5.250 08/01/20 3,261,783 ------------- 161,606,085 ------------- COLORADO 4.4% 4,340 Adams & Arapahoe Cntys, CO Jt Sch Dist Ser A (FSA Insd).............................. 5.250 12/01/18 4,631,388 1,945 Colorado Ed & Cultural Charter Sch Pinnacle Impt & Rfdg (XLCA Insd).......... 5.250 06/01/23 2,045,304 3,000 Colorado Hlth Fac Auth Rev Catholic Hlth Initiatives Ser A (Escrowed to Maturity)................................. 5.500 03/01/32 3,228,150 4,250 Colorado Hlth Fac Auth Rev Covenant Retirement Cmnty Inc...................... 5.000 12/01/35 4,150,337 2,700 Colorado Hlth Fac Auth Rev Hlth Fac Evangelical Lutheran...................... 5.000 06/01/35 2,674,539 See Notes to Financial Statements 11 VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST II PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE ---------------------------------------------------------------------------------------------- COLORADO (CONTINUED) $ 2,250 Colorado Hlth Fac Auth Rev Hosp Portercare Adventist Hlth (Prerefunded @ 11/15/11)... 6.500% 11/15/31 $ 2,558,587 80 Colorado Hsg Fin Auth Single Family Pgm Sr Ser A2 (AMT).............................. 7.250 05/01/27 82,066 49 Colorado Hsg Fin Auth Single Family Pgm Sr Ser B1 (AMT).............................. 7.650 11/01/26 49,333 1,500 Denver, CO City & Cnty Arpt Rev Ser D (AMT)..................................... 7.750 11/15/13 1,695,150 6,160 E-470 Pub Hwy Auth CO Rev Sr Ser A (MBIA Insd)..................................... 5.000 09/01/21 6,302,666 1,000 Park Creek Metro Dist CO Rev Sr Ltd Tax Ppty Tax Rfdg............................. 5.500 12/01/30 1,023,280 ------------- 28,440,800 ------------- CONNECTICUT 1.1% 5,000 Connecticut St Ser C (FGIC Insd).......... 5.000 04/01/22 5,224,250 1,010 Mashantucket Western Pequot Tribe CT Spl Rev Ser A, 144A--Private Placement (c).... 6.400 09/01/11 1,036,866 990 Mashantucket Western Pequot Tribe CT Spl Rev Ser A, 144A--Private Placement (Prerefunded @ 09/01/07) (c).............. 6.400 09/01/11 1,034,540 ------------- 7,295,656 ------------- DISTRICT OF COLUMBIA 0.8% 5,000 Metropolitan Washington DC Arpt Auth Sys Ser A (AMT) (FGIC Insd)................... 5.250 10/01/32 5,146,600 ------------- FLORIDA 5.7% 2,500 Dade Cnty, FL Wtr & Swr Sys Rev (FGIC Insd)..................................... 5.250 10/01/21 2,570,275 570 Escambia Cnty, FL Hlth Fac Auth Rev (AMBAC Insd)..................................... 5.950 07/01/20 598,528 1,000 Highlands Cnty, FL Hlth Fac Auth Rev Hosp Adventist Hlth Ser D...................... 5.000 11/15/35 1,004,950 3,980 Jacksonville, FL Port Auth (AMT) (MBIA Insd)..................................... 5.700 11/01/30 4,213,984 2,780 Jacksonville, FL Port Auth (Prerefunded @ 11/01/10) (AMT) (MBIA Insd)............... 5.700 11/01/30 2,973,432 5,000 Jea, FL Wtr & Swr Sys Rev Ser C........... 5.000 10/01/41 5,019,500 3,000 Lake Cnty, FL Sch Brd Ctf Part (Prerefunded @ 07/01/12) (AMBAC Insd)..... 5.375 07/01/17 3,246,570 11,500 Miami-Dade Cnty, FL Aviation Rev Miami Intl Arpt (AMT) (FGIC Insd)............... 5.375 10/01/32 11,973,570 5,000 Ocoee, FL Wtr & Swr Sys Rev Impt & Rfdg (AMBAC Insd).............................. 5.125 10/01/33 5,187,250 ------------- 36,788,059 ------------- 12 See Notes to Financial Statements VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST II PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE ---------------------------------------------------------------------------------------------- GEORGIA 3.9% $ 2,000 Atlanta, GA Wtr & Wastewtr Rev (FSA Insd)..................................... 5.000% 11/01/21 $ 2,082,240 5,000 Clayton Cnty & Clayton Cnty GA Wtr Auth Wtr & Swr Rev............................. 5.000 05/01/20 5,230,600 5,000 Georgia Muni Elec Auth Pwr Rev Ser B (Escrowed to Maturity) (FGIC Insd)........ 5.700 01/01/19 5,612,050 2,000 Georgia St Rd & Twy Auth Rev.............. 5.000 10/01/19 2,095,240 2,210 Marietta, GA Dev Auth Rev First Mtg Life College Ser B (FSA Insd) (b).............. 5.375 09/01/09 2,249,183 6,740 Municipal Elec Auth GA Comb Turbine Proj Ser A (MBIA Insd)......................... 5.250 11/01/20 7,129,100 1,000 Richmond Cnty, GA Dev Auth ASU Jaguar Student Hsg LLC Ser A..................... 5.250 02/01/35 1,013,590 ------------- 25,412,003 ------------- HAWAII 1.7% 10,430 Hawaii St Dept Budget & Fin Spl Purp Rev Hawaiian Elec Co Inc Ser A (AMT) (MBIA Insd)..................................... 5.650 10/01/27 11,179,813 ------------- ILLINOIS 13.2% 3,750 Bolingbrook, IL Cap Apprec Ser B (MBIA Insd)..................................... * 01/01/32 918,150 1,710 Bolingbrook, IL Cap Apprec Ser C Rfdg (MBIA Insd) (b)........................... * 01/01/29 559,273 6,000 Chicago, IL Lakefront Millenium Pkg Fac (MBIA Insd) (a)........................... 0/5.750 01/01/29 6,465,240 13,100 Chicago, IL O'Hare Intl Arpt Rev Rols RR II 494-1 (Acquired 12/16/05 to 02/17/06, Cost $15,005,492) (Inverse Floating Rate) (MBIA Insd) (d)........................... 6.586 01/01/24 14,757,805 1,500 Chicago, IL O'Hare Intl Arpt Rev Rols RR II R 522 (Acquired 02/24/06, Cost $1,772,100) (Inverse Floating Rate) (FGIC Insd) (d)................................. 6.586 01/01/23 1,692,885 90 Chicago, IL Single Family Mtg Rev Ser A (AMT) (GNMA Collateralized)............... 7.000 09/01/27 90,347 5 Chicago, IL Single Family Mtg Rev Ser B (AMT) (GNMA Collateralized)............... 7.625 09/01/27 5,018 3,345 Cook Cnty, IL Sch Dist No. 100 Berwyn South Ser D (FSA Insd).................... 5.500 12/01/23 3,635,680 4,500 Cook Cnty, IL Ser A (Prerefunded @ 05/15/11) (FGIC Insd)..................... 5.500 11/15/31 4,855,770 1,000 Illinois Dev Fin Auth Rev Cmnty Rehab Providers Fac Ser A....................... 7.375 07/01/25 1,085,290 1,500 Illinois Fin Auth Rev IL Inst of Technology Ser A.......................... 5.000 04/01/31 1,513,380 2,500 Illinois Fin Auth Rev Northwestern Mem Hosp Ser A................................ 5.500 08/15/43 2,633,975 See Notes to Financial Statements 13 VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST II PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE ---------------------------------------------------------------------------------------------- ILLINOIS (CONTINUED) $ 1,335 Illinois Fin Auth Solid Waste Rev Disp Waste Mgmt Inc Proj Ser A (AMT)........... 5.050% 08/01/29 $ 1,316,911 1,325 Illinois Fin Auth Student Hsg Rev MJH Ed Assistance IV Sr Ser A.................... 5.125 06/01/35 1,328,418 3,180 Illinois Hlth Fac Auth Rev Children's Mem Hosp (MBIA Insd).......................... 6.250 08/15/13 3,522,232 1,485 Illinois Hlth Fac Auth Rev Evangelical Hosp Ser A Rfdg (FSA Insd)................ 6.750 04/15/17 1,738,593 825 Illinois Hlth Fac Auth Rev Evangelical Hosp Ser C (FSA Insd)..................... 6.750 04/15/17 965,885 1,000 Illinois Hlth Fac Auth Rev Highland Pk Hosp Proj Ser A (Prerefunded @ 10/01/07) (MBIA Insd)............................... 5.750 10/01/17 1,047,080 8,000 Illinois St First Ser (FSA Insd).......... 5.250 12/01/19 8,491,280 3,400 Illinois St First Ser (FSA Insd).......... 5.250 04/01/27 3,576,868 2,070 Northern IL Univ Ctf Part Hoffman Estates Ctr Proj (FSA Insd)....................... 5.400 09/01/16 2,221,690 200 Peoria, Moline & Freeport, IL Coll Mtg Ser A (AMT) (GNMA Collateralized)............. 7.600 04/01/27 202,556 5,000 Regional Trans Auth IL Ser A (AMBAC Insd)..................................... 8.000 06/01/17 6,530,550 5,005 Will Cnty, IL Cmnty Sch Dist (FGIC Insd)..................................... 5.000 01/01/23 5,210,155 10,000 Will Cnty, IL Sch Dist No. 122 Ser B Rfdg (FGIC Insd)............................... 5.250 11/01/20 10,534,200 ------------- 84,899,231 ------------- INDIANA 3.0% 2,805 Dekalb Eastn High Sch Bldg Corp Ind First Mtg (FSA Insd)............................ 6.000 01/15/18 3,086,426 4,000 East Chicago, IN Elementary Sch Bldg Corp First Mtg Ser A........................... 6.250 07/05/08 4,142,880 1,660 Indiana Hlth & Ed Fac Fin Auth Hosp Rev Clarian Hlth Oblig Ser A.................. 5.000 02/15/36 1,669,462 3,000 Indiana Hlth Fac Fin Auth Hosp Rev Columbus Regl Hosp Rfdg (FSA Insd)........ 7.000 08/15/15 3,473,910 1,500 Indiana St Dev Fin Auth Rev Exempt Fac Conv Rfdg (AMT)........................... 5.950 08/01/30 1,527,675 2,000 Petersburg, IN Pollutn Ctl Rev IN Pwr & Lt (AMT)..................................... 5.950 12/01/29 2,117,580 2,850 Southwest Parke Cmnty Sch Bldg First Mtg (FGIC Insd) (b)........................... 5.250 07/15/21 3,032,457 ------------- 19,050,390 ------------- 14 See Notes to Financial Statements VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST II PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE ---------------------------------------------------------------------------------------------- IOWA 0.6% $ 1,500 Tobacco Settlement Auth IA Tob Settlement Rev Ser C................................. 5.375% 06/01/38 $ 1,499,925 2,500 Tobacco Settlement Auth IA Tob Settlement Rev Ser C................................. 5.500 06/01/42 2,522,100 ------------- 4,022,025 ------------- KANSAS 1.2% 3,430 Kansas St Dev Fin Auth Rev KS Proj Ser N (AMBAC Insd) (b).......................... 5.250 10/01/20 3,605,033 3,615 Kansas St Dev Fin Auth Rev KS Proj Ser N (AMBAC Insd) (b).......................... 5.250 10/01/21 3,811,078 ------------- 7,416,111 ------------- KENTUCKY 0.1% 500 Mount Sterling, KY Lease Rev KY League Cities Fdg Ser B.......................... 6.100 03/01/18 571,645 ------------- LOUISIANA 5.3% 5,000 Lafayette, LA Util Rev (MBIA Insd)........ 5.250 11/01/21 5,319,000 2,500 Louisiana Loc Govt Environment Fac Pkg Fac Corp Garage Proj Ser A (AMBAC Insd)....... 5.375 10/01/31 2,625,400 5,970 Louisiana Loc Govt Environment Southeastn LA Student Hsg Ser A (MBIA Insd) (b)...... 5.250 08/01/24 6,286,111 1,400 Louisiana Pub Fac Auth Rev Hlth Fac Glen Retirement Ser A.......................... 6.700 12/01/25 1,416,058 8,065 Louisiana St Office Fac Corp LA St Cap Complex Pgm (MBIA Insd) (b)............... 5.000 11/01/20 8,311,708 6,000 New Orleans, LA Rfdg (MBIA Insd).......... 5.125 09/01/21 6,186,840 4,000 New Orleans, LA Rfdg (FGIC Insd).......... 5.500 12/01/21 4,284,200 ------------- 34,429,317 ------------- MARYLAND 2.4% 1,500 Baltimore, MD Convention Ctr Hotel Rev Drivers Ser 1251 (Acquired 02/06/06, Cost $1,765,635) (Inverse Floating Rate) (XLCA Insd) (d)................................. 6.368 03/01/14 1,708,455 5,000 Maryland St Econ Dev Corp MD Aviation Admin Fac (AMT) (FSA Insd)................ 5.375 06/01/20 5,291,850 1,000 Maryland St Econ Dev Corp Student Hsg Rev Univ MD College Pk Proj (Prerefunded @ 06/01/13)................................. 5.625 06/01/35 1,092,660 2,000 Maryland St Hlth & Higher Ed Fac Auth Rev MD Inst College of Art.................... 5.000 06/01/40 1,948,800 1,200 Maryland St Hlth & Higher Ed Fac Auth Rev Uni Hosp Cecil Cnty Issue................. 5.000 07/01/40 1,206,060 4,000 Maryland St Trans Auth Arpt Baltimore/WA Intl Arpt Ser B (AMT) (AMBAC Insd)........ 5.125 03/01/24 4,152,360 ------------- 15,400,185 ------------- See Notes to Financial Statements 15 VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST II PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE ---------------------------------------------------------------------------------------------- MASSACHUSETTS 5.5% $ 1,200 Massachusetts Bay Tran Auth MA Gen Tran Sys Ser A Rfdg............................ 6.250% 03/01/12 $ 1,343,652 3,500 Massachusetts Bay Trans Auth MA Sales Tax Rev Ser A................................. 5.000 07/01/35 3,583,895 2,500 Massachusetts Bay Trans Auth Ser A (Prerefunded @ 07/01/12).................. 5.000 07/01/32 2,654,425 2,000 Massachusetts Muni Whsl Elec Co Proj No 6-A (MBIA Insd)........................... 5.250 07/01/16 2,136,300 3,600 Massachusetts St Dev Fin Agy Rev Boston Univ Ser T-1 (AMBAC Insd)................. 5.000 10/01/35 3,702,060 2,500 Massachusetts St Dev Fin Agy Rev Western New England Ser A......................... 5.000 09/01/33 2,556,975 1,750 Massachusetts St Hlth & Ed Fac Auth Rev Hlthcare Sys Covenant Hlth................ 6.000 07/01/31 1,847,282 2,000 Massachusetts St Hlth & Ed Fac Auth Rev Saint Mem Med Ctr Ser A................... 6.000 10/01/23 2,001,380 5,450 Massachusetts St Hlth & Ed Fac Auth Rev Univ MA Mem Issue Ser D................... 5.000 07/01/33 5,405,582 925 Massachusetts St Indl Fin Agy Wtr Treatment Amern Hingham (AMT)............. 6.900 12/01/29 942,825 925 Massachusetts St Indl Fin Agy Wtr Treatment Amern Hingham (AMT)............. 6.950 12/01/35 943,139 2,995 Massachusetts St Wtr Pollutn Abatement Tr Pool Pgm Bds Ser 10....................... 5.000 08/01/21 3,129,715 5,000 Massachusetts St Wtr Res Auth Gen Ser J (FSA Insd)................................ 5.000 08/01/32 5,111,450 ------------- 35,358,680 ------------- MICHIGAN 4.0% 3,000 Detroit, MI City Sch Dist Sch Bldg & Site Impt Ser A (Prerefunded @ 05/01/13) (FGIC Insd)..................................... 5.375 05/01/24 3,258,540 3,185 Detroit, MI Wtr Supply Sys Rev Sr Lien Ser A (MBIA Insd) (b)......................... 5.250 07/01/20 3,379,795 2,790 Detroit, MI Wtr Supply Sys Rev Sr Lien Ser C Rfdg (MBIA Insd) (b).................... 5.250 07/01/19 2,966,328 2,000 Grand Rapids, MI Wtr Supply (FGIC Insd)... 5.750 01/01/15 2,161,040 4,000 Kent Hosp Fin Auth MI Rev Metro Hosp Proj Ser A..................................... 6.000 07/01/35 4,263,240 1,480 Michigan St Hsg Dev Auth Multi-Family Rev Ltd Oblig Ser A Rfdg (GNMA Collateralized)........................... 6.600 04/01/30 1,528,662 2,075 South Lyon, MI Cmnty Sch Bldg & Site (FGIC Insd)..................................... 5.250 05/01/18 2,208,879 16 See Notes to Financial Statements VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST II PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE ---------------------------------------------------------------------------------------------- MICHIGAN (CONTINUED) $ 2,285 Taylor, MI Bldg Auth (AMBAC Insd) (b)..... 6.000% 03/01/13 $ 2,556,755 3,090 Troy, MI Downtown Dev Auth Dev Rfdg (MBIA Insd)..................................... 5.500 11/01/15 3,336,582 ------------- 25,659,821 ------------- MINNESOTA 1.0% 1,065 Duluth, MN Econ Dev Auth Hlthcare Fac Rev Benedictine Hlth Sys Saint Mary's......... 5.250 02/15/33 1,082,274 1,175 Maple Grove, MN Hlthcare Fac Rev North Mem Hlthcare.................................. 5.000 09/01/35 1,185,845 2,200 Saint Paul, MN Hsg & Redev Auth Hosp Rev Hlth East Proj............................ 6.000 11/15/30 2,357,564 1,000 Saint Paul, MN Hsg & Redev Auth Hosp Rev Hlth East Proj............................ 6.000 11/15/35 1,070,920 1,000 Stillwater, MN Hlthcare Rev Hlth Sys Oblig Group..................................... 5.000 06/01/25 1,009,780 ------------- 6,706,383 ------------- MISSISSIPPI 1.1% 1,900 Mississippi Dev Bk Spl Oblig Cap Proj & Equip Acquisition Ser A2 (AMBAC Insd)..... 5.000 07/01/24 2,003,626 1,550 Mississippi Dev Bk Spl Oblig Madison Cnty Hosp Proj (Prerefunded @ 07/01/09)........ 6.400 07/01/29 1,694,181 2,595 Mississippi Dev Bk Spl Oblig MS Ltd Oblig Hosp Impt (MBIA Insd) (b)................. 5.250 07/01/32 2,680,894 555 Mississippi Home Corp Single Family Rev Mtg Ser C (AMT) (GNMA Collateralized)..... 7.600 06/01/29 569,336 ------------- 6,948,037 ------------- MISSOURI 5.6% 2,000 Cape Girardeau Cnty, MO Indl Dev Auth Hlthcare Fac Rev Southeast MO Hosp Assoc.. 5.625 06/01/27 2,048,500 1,250 Cole Cnty, MO Indl Dev Auth Sr Living Fac Rev Lutheran Sr Svc Heisinger Proj........ 5.500 02/01/35 1,286,437 2,000 Curators Univ MO Sys Fac Rev Ser B Rfdg (b)....................................... 5.000 11/01/20 2,083,160 2,500 Missouri St Dev Fin Brd Infrastructure Fac Rev Crackerneck Creek Proj Ser C.......... 5.000 03/01/26 2,534,650 2,195 Missouri St Hlth & Ed Fac Rev Univ MO Columbia Arena Proj (b)................... 5.000 11/01/16 2,312,872 4,500 North Kansas City, MO Sch Dist No. 74 MO Direct Deposit Impt & Rfdg................ 5.000 03/01/25 4,674,015 4,000 Platte Cnty, MO Indl Dev Auth Trans Rev... 4.500 12/01/24 3,933,040 2,500 Platte Cnty, MO Neighborhood Impt Parkville Ser B (MBIA Insd)............... 5.000 02/01/25 2,592,225 1,500 Saint Louis Cnty, MO Mtg Rev Ctf Rcpt Ser H (AMT) (Escrowed to Maturity)............ 5.400 07/01/18 1,598,550 See Notes to Financial Statements 17 VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST II PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE ---------------------------------------------------------------------------------------------- MISSOURI (CONTINUED) $ 9,855 Saint Louis, MO Arpt Rev Arpt Dev Pgm Ser A (Prerefunded @ 07/01/11) (MBIA Insd).... 5.250% 07/01/31 $ 10,536,769 2,380 Saint Louis, MO Arpt Rev Cap Impt Pgm Ser A (MBIA Insd) (b)......................... 5.375 07/01/19 2,530,583 ------------- 36,130,801 ------------- MONTANA 0.4% 2,300 Forsyth, MT Pollutn Ctl Rev Northwestn Corp Colstrip Rfdg (AMBAC Insd) (e)....... 4.650 08/01/23 2,307,866 ------------- NEBRASKA 0.7% 4,260 University NE Univ Rev Lincoln Student Fees & Fac Ser B.......................... 5.000 07/01/23 4,374,637 ------------- NEVADA 4.2% 8,000 Clark Cnty, NV Arpt Rev Sub Lien Ser A-2 (FGIC Insd)............................... 5.000 07/01/36 8,158,080 2,000 Clark Cnty, NV Econ Dev Rev Alexander Dawson Sch Proj........................... 5.375 05/15/33 2,063,800 7,000 Clark Cnty, NV Indl Dev Rev Southwest Gas Corp Proj Ser A (AMT) (AMBAC Insd)........ 5.250 07/01/34 7,251,160 4,375 Las Vegas Vly, NV Wtr Dist Ser B Rfdg (MBIA Insd)............................... 5.000 06/01/27 4,487,131 85 Nevada Hsg Div Single Family Pgm Mezz Ser B (AMT) (FHA/VA Gtd)...................... 6.550 10/01/12 85,800 5,000 Reno, NV Lien Trans Proj (Prerefunded @ 06/01/12) (AMBAC Insd).................... 5.250 06/01/41 5,367,700 ------------- 27,413,671 ------------- NEW HAMPSHIRE 0.6% 1,000 New Hampshire Hlth & Ed Fac Auth Rev Derryfield Sch............................ 7.000 07/01/30 1,059,000 1,400 New Hampshire Hlth & Ed Fac Hlthcare Sys Covenant Hlth............................. 5.500 07/01/34 1,449,532 1,000 New Hampshire St Bus Fin Auth Wtr Fac Rev Pennichuck Wtrwks Inc (AMT) (AMBAC Insd).. 6.300 05/01/22 1,042,840 ------------- 3,551,372 ------------- NEW JERSEY 6.6% 1,900 New Jersey Econ Dev Auth Rev Cig Tax...... 5.750 06/15/29 2,009,079 1,000 New Jersey Econ Dev Auth Rev Cig Tax...... 5.500 06/15/31 1,036,720 5,000 New Jersey Econ Dev Auth Rev Sch Fac Constr Ser I (Prerefunded @ 09/01/14)..... 5.000 09/01/23 5,332,400 2,210 New Jersey Econ Dev Auth Wtr Fac Rev NJ Amern Wtr Co Inc Ser B (AMT) (FGIC Insd)..................................... 5.375 05/01/32 2,282,886 4,350 New Jersey Econ Dev Wtr NJ Amern Wtr Co Inc Ser A (AMT) (FGIC Insd)............... 5.250 07/01/38 4,463,492 18 See Notes to Financial Statements VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST II PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE ---------------------------------------------------------------------------------------------- NEW JERSEY (CONTINUED) $ 1,000 New Jersey Hlthcare Fac Fin Auth Rev Cap Hlth Sys Oblig Grp Ser A.................. 5.375% 07/01/33 $ 1,021,390 2,500 New Jersey Hlthcare Fac Fin Auth Rev Gen Hosp Ctr at Passaic (Escrowed to Maturity) (FSA Insd)................................ 6.750 07/01/19 3,009,900 10,000 New Jersey St Ed Fac Auth Higher Ed Cap Impt Ser A (AMBAC Insd)................... 5.250 09/01/20 10,633,100 2,000 New Jersey St Tpk Auth Tpk Rev Ser C-1 (AMBAC Insd).............................. 5.000 01/01/35 2,047,420 10,750 Salem Cnty, NJ Indl Pollutn Ctl Fin Auth Rev Pollutn Ctl Pub Svc Elec & Gas Ser A (AMT) (MBIA Insd)......................... 5.450 02/01/32 10,906,198 ------------- 42,742,585 ------------- NEW MEXICO 0.2% 1,500 Jicarilla, NM Apache Nation Rev Adj Ser A (Acquired 10/23/03, Cost $1,514,910) (d)....................................... 5.000 09/01/18 1,526,310 ------------- NEW YORK 11.1% 1,000 Erie Cnty, NY Tob Asset Securitization Corp Ser A................................ 5.000 06/01/38 965,120 7,000 Metropolitan Trans Auth NY Rev Ser A Rfdg (FGIC Insd)............................... 5.250 11/15/31 7,373,380 5,000 Metropolitan Trans Auth NY Svc Contract Ser A Rfdg (AMBAC Insd)................... 5.000 07/01/30 5,125,600 1,500 Nassau Cnty, NY Tob Settlement Corp Ser A-3....................................... 5.000 06/01/35 1,456,290 3,500 Nassau Cnty, NY Tob Settlement Corp Ser A-3....................................... 5.125 06/01/46 3,401,265 3,250 New York City Hlth & Hosp Corp Rev Hlth Sys Ser A (AMBAC Insd).................... 5.000 02/15/11 3,415,458 5,000 New York City Ser H (MBIA Insd)........... 5.250 03/15/14 5,332,350 5,000 New York City Sub Ser F-1................. 5.000 09/01/25 5,144,450 6,000 New York City Transitional Fin Auth Rev Future Tax Sec Ser A Rfdg (a)............. 5.500/14.000 11/01/26 6,452,340 8,240 New York City Transitional Fin Auth Rev Future Tax Sec Ser C Rfdg (AMBAC Insd).... 5.250 08/01/18 8,789,278 7,575 New York St Dorm Auth Rev City Univ Sys Cons Ser A................................ 5.625 07/01/16 8,333,636 1,520 New York St Dorm Auth Rev Insd John T Mather Mem Hosp (Connie Lee Insd) (b)..... 6.500 07/01/09 1,639,442 3,845 New York St Dorm Auth Rev Secd Hosp Gen Hosp Rfdg................................. 5.750 02/15/20 4,188,051 See Notes to Financial Statements 19 VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST II PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE ---------------------------------------------------------------------------------------------- NEW YORK (CONTINUED) $ 2,310 New York St Med Care Fac Fin Agy Rev Saint Peter's Hosp Proj Ser A (AMBAC Insd)...... 5.375% 11/01/13 $ 2,312,749 5,000 New York St Urban Dev Corp Rev St Fac Rfdg.................................. 5.700 04/01/20 5,621,150 2,150 Westchester, Tob Asset Securitization Corp NY........................................ 5.125 06/01/38 2,103,517 ------------- 71,654,076 ------------- NORTH CAROLINA 0.6% 1,950 Forsyth Cnty, NC Ctf Partn (b)............ 5.000 02/01/24 2,009,826 1,500 North Carolina Eastn Muni Pwr Agy Pwr Sys Rev Ser D................................. 6.700 01/01/19 1,632,555 ------------- 3,642,381 ------------- OHIO 3.0% 3,000 Cincinnati, OH City Sch Dist Sch Impt (FSA Insd)..................................... 5.250 06/01/18 3,195,090 3,150 Cuyahoga Cnty, OH Hosp Fac Rev Canton Inc Proj...................................... 7.500 01/01/30 3,471,867 1,000 Dayton, OH Arpt Rev James M Cox Dayton Ser C Rfdg (AMT) (Radian Insd)................ 5.250 12/01/27 1,021,600 3,540 Franklin Cnty, OH Hosp Rev Doctor's Hosp Proj Impt & Rfdg (Escrowed to Maturity)... 5.875 12/01/23 3,847,661 5,130 Muskingum Cnty, OH Hosp Fac Rev Bethesda Care Sys Impt & Rfdg (Connie Lee Insd) (b)....................................... 6.250 12/01/10 5,300,265 785 Pickerington, OH Loc Sch Dist Cap Apprec Sch Fac Contract (FGIC Insd).............. * 12/01/11 631,234 1,160 Toledo Lucas Cnty, OH Port Auth Dev Rev Northwest OH Bd Fd Ser C (AMT) (b)........ 6.600 11/15/15 1,244,808 685 Toledo Lucas Cnty, OH Port Auth Northwest Bd Fd Ser A (AMT)......................... 6.000 05/15/11 712,571 ------------- 19,425,096 ------------- OKLAHOMA 0.7% 1,500 Jenks, OK Aquarium Auth Rev First Mtg (Prerefunded @ 07/01/10) (MBIA Insd)...... 6.100 07/01/30 1,647,510 2,755 Tulsa Cnty, OK Pub Fac Auth Cap Impt Rev (Prerefunded @ 11/01/09) (AMBAC Insd)..... 6.250 11/01/22 3,027,993 ------------- 4,675,503 ------------- 20 See Notes to Financial Statements VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST II PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE ---------------------------------------------------------------------------------------------- OREGON 3.0% $ 2,010 Emerald Peoples Util Dist OR Rfdg (FGIC Insd) (b)................................. 7.350% 11/01/09 $ 2,243,060 2,060 Multnomah Cnty, OR Sch Dist No. 007 Reynolds (MBIA Insd)...................... 5.000 06/01/30 2,116,918 5,000 Oregon Hlth Sciences Univ Insd Ser A (MBIA Insd)..................................... 5.250 07/01/22 5,293,600 5,000 Oregon St Dept Admin Ser C Rfdg (MBIA Insd)..................................... 5.250 11/01/18 5,293,900 570 Oregon St Vets Welfare Ser 76A............ 6.050 10/01/28 574,560 3,580 Yamhill Cnty, OR Sch Dist No. 029J Newburg (Prerefunded @ 06/15/12) (MBIA Insd)...... 5.250 06/15/21 3,848,572 ------------- 19,370,610 ------------- PENNSYLVANIA 1.3% 4,535 Pennsylvania St Higher Ed Fac Auth Rev UPMC Hlth Sys Ser A....................... 6.250 01/15/17 4,948,501 1,905 Pennsylvania St Higher Ed Fac Auth Rev UPMC Hlth Sys Ser A....................... 6.250 01/15/18 2,075,288 1,370 Philadelphia, PA Hosp & Higher Ed Fac Auth Rev Cmnty College Ser B Rfdg (MBIA Insd) (b)....................................... 6.500 05/01/08 1,440,733 ------------- 8,464,522 ------------- SOUTH CAROLINA 3.6% 6,250 Charleston Ed Excellence Fin Corp SC Rev Rols RR II R 471 (Acquired 12/06/05, Cost $6,834,905) (Inverse Floating Rate) (d)... 6.586 12/01/26 6,864,000 3,115 Greenville, SC Impt & Rfdg (MBIA Insd) (b)....................................... 5.250 04/01/21 3,310,747 1,000 Newberry Invtg in Newberry Cnty Sch Dist Proj...................................... 5.000 12/01/30 991,700 1,015 Rock Hill, SC Util Sys Rev Comb Ser C Rfdg (FSA Insd) (b)............................ 5.000 01/01/11 1,067,161 6,500 South Carolina Jobs Econ Dev Auth Indl Rev Elec & Gas Co Proj Ser A (AMBAC Insd)..... 5.200 11/01/27 6,841,445 3,750 South Carolina Jobs Econ Dev Auth Indl Rev Elec & Gas Co Proj Ser B (AMT) (AMBAC Insd)..................................... 5.450 11/01/32 3,928,800 ------------- 23,003,853 ------------- SOUTH DAKOTA 0.4% 1,375 Deadwood, SD Ctf Partn (ACA Insd)......... 6.375 11/01/20 1,482,869 1,000 South Dakota St Hlth & Ed Fac Auth Rev Childrens Care Hosp Rfdg.................. 6.125 11/01/29 1,050,610 ------------- 2,533,479 ------------- See Notes to Financial Statements 21 VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST II PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE ---------------------------------------------------------------------------------------------- TENNESSEE 4.7% $ 2,130 Chattanooga, TN Hlth Ed & Hsg Fac Brd Rev CDFI Phase I LLC Proj Ser A Rfdg.......... 5.000% 10/01/25 $ 2,082,032 2,595 Chattanooga, TN Hlth Ed & Hsg Fac Brd Rev CDFI Phase I LLC Proj Ser A Rfdg.......... 5.125 10/01/35 2,533,265 1,270 Elizabethton, TN Hlth & Ed Fac Brd Rev Hosp First Mtg Ser B Impt & Rfdg.......... 8.000 07/01/33 1,488,186 7,050 Hallsdale Powell Util Dist Knox Cnty TN Wtr & Swr Rev Impt Ser B (FGIC Insd)...... 5.000 04/01/34 7,221,668 12,525 Johnson City, TN Hlth & Ed Fac Brd Hosp Rev Cap Apprec First Mtg Ser A Rfdg (MBIA Insd)..................................... * 07/01/26 4,661,054 6,500 Johnson City, TN Hlth & Ed Fac Brd Hosp Rev First Mtg Mtn St Hlth Ser A........... 5.500 07/01/36 6,737,835 4,800 Johnson City, TN Hlth & Ed Fac Brd Hosp Rev First Mtg Mtn St Hlth Ser A Rfdg (MBIA Insd)..................................... 7.500 07/01/25 5,847,312 ------------- 30,571,352 ------------- TEXAS 13.6% 2,335 Beaumont, TX Wtrwks & Swr Sys (Prerefunded @ 09/01/10) (FGIC Insd)................... 6.250 09/01/14 2,565,278 2,000 Brazos Cnty, TX Hlth Fac Dev Oblig Grp.... 5.375 01/01/32 2,063,900 3,565 Brazos Riv Auth TX Pollutn Ctl Rev Adj TXU Elec Co Proj Ser C Rfdg (AMT)............. 5.750 05/01/36 3,780,433 795 Brownsville, TX Util Sys Rev (Escrowed to Maturity)................................. 7.375 01/01/10 855,110 8,000 Dallas-Fort Worth, TX Intl Arpt Rev Jt Ser A Impt & Rfdg (AMT) (FGIC Insd)........... 5.500 11/01/31 8,370,160 2,345 Denton Cnty, TX Perm Impt (Prerefunded @ 07/15/10) (b)............................. 5.500 07/15/19 2,502,959 2,145 Granbury, TX Indpt Sch Dist Rfdg (PSF Gtd)...................................... 5.000 08/01/29 2,204,867 1,000 Harris Cnty, TX Hlth Fac Dev Mem Hermann Hlthcare Ser A (Prerefunded @ 06/01/11)... 6.375 06/01/29 1,122,700 5,000 Harris Cnty, TX Sr Lien Toll Rd Rfdg (FSA Insd)..................................... 5.125 08/15/32 5,139,000 2,760 Houston, TX Arpt Sys Rev (Escrowed to Maturity)................................. 9.500 07/01/10 3,096,886 4,655 Houston, TX Arpt Sys Rev Sub Lien (FSA Insd)..................................... 5.500 07/01/15 5,001,798 3,000 Houston, TX Arpt Sys Rev Sub Lien Ser A (AMT) (FSA Insd).......................... 5.625 07/01/30 3,156,090 5,000 Houston, TX Util Sys Rev Comb First Lien Ser A (FSA Insd).......................... 5.250 05/15/20 5,287,000 3,920 Lower Colorado Riv Auth TX Transmission Contract Rev LCRA Svc Corp Proj (FGIC Insd)..................................... 5.000 05/15/33 3,973,077 22 See Notes to Financial Statements VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST II PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE ---------------------------------------------------------------------------------------------- TEXAS (CONTINUED) $ 5,000 Matagorda Cnty, TX Navig Dist No. 1 Rev Houston Lt Rfdg (AMT) (AMBAC Insd)........ 5.125% 11/01/28 $ 5,260,350 1,500 Mesquite, TX Hlth Fac Dev Corp Retirement Fac Christian Care Ctr.................... 5.625 02/15/35 1,527,450 2,000 Mesquite, TX Hlth Fac Dev Corp Retirement Fac Christian Care Ctr Ser A (Prerefunded @ 02/15/10)............................... 7.625 02/15/28 2,273,520 3,500 Metropolitan Hlth Fac Dev Corp TX Wilson N Jones Mem Hosp Proj....................... 7.250 01/01/31 3,606,470 3,645 Midlothian, TX Ind Sch Dist Sch Bldg Rfdg (PSF Gtd) (b)............................. 5.000 02/15/27 3,750,596 3,325 North Central, TX Hlth Fac Dev Corp Rev Hosp Baylor Hlthcare Sys Proj Ser A....... 5.125 05/15/29 3,366,895 3,000 Prosper, TX Indpt Sch Dist (PSF Gtd)...... 5.500 08/15/33 3,182,130 5,055 San Antonio, TX Elec & Gas Rev Sys Rfdg... 5.375 02/01/16 5,410,872 1,990 Stafford, TX Econ Dev Corp (FGIC Insd) (b)....................................... 6.000 09/01/19 2,260,182 3,960 Stafford, TX Econ Dev Corp (FGIC Insd).... 5.500 09/01/30 4,301,550 3,510 Texas St Wtr Fin Assistance............... 5.500 08/01/35 3,668,020 ------------- 87,727,293 ------------- UTAH 0.4% 4,950 Intermountain Pwr Agy UT Pwr Supply Rev Ser A Rfdg (Escrowed to Maturity) (FGIC Insd)..................................... * 07/01/17 2,898,176 ------------- VIRGINIA 1.4% 2,000 Fairfax Cnty, VA Ctf Partn................ 5.300 04/15/23 2,115,940 1,130 Richmond, VA Indl Dev Auth Govt Fac Rev Bd (AMBAC Insd).............................. 5.000 07/15/14 1,201,303 675 Richmond, VA Indl Dev Auth Govt Fac Rev Bd (AMBAC Insd).............................. 5.000 07/15/16 715,689 1,465 Richmond, VA Indl Dev Auth Govt Fac Rev Bd (AMBAC Insd).............................. 5.000 07/15/17 1,551,376 1,520 Tobacco Settlement Fin Corp VA............ 5.500 06/01/26 1,556,495 1,660 Tobacco Settlement Fin Corp VA............ 5.625 06/01/37 1,697,831 ------------- 8,838,634 ------------- WASHINGTON 4.1% 5,000 Clark Cnty, WA Sch Dist 114 (FSA Insd).... 5.250 06/01/19 5,299,400 1,370 King Cnty, WA Ser B (Prerefunded @ 12/01/07)................................. 5.900 12/01/14 1,442,596 3,630 King Cnty, WA Ser B Rfdg (Prerefunded @ 12/01/07)................................. 5.900 12/01/14 3,822,354 2,245 King Cnty, WA Ser B (Prerefunded @ 12/01/07)................................. 6.625 12/01/15 2,388,747 700 Quinault Indian Nation, WA Quinault Beach Ser A Impt & Rfdg (ACA Insd).............. 5.800 12/01/15 726,502 See Notes to Financial Statements 23 VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST II PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued PAR AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE ---------------------------------------------------------------------------------------------- WASHINGTON (CONTINUED) $ 3,000 Spokane, WA Pub Fac Dist Hotel Motel & Sales Use Tax (MBIA Insd)................. 5.250% 09/01/33 $ 3,148,140 4,000 Washington St Pub Pwr Supply Ser A Rfdg (FGIC Insd)............................... 7.000 07/01/08 4,264,920 5,000 Washington St Pub Pwr Supply Ser A Rfdg (Prerefunded @ 07/01/06) (AMBAC Insd)..... 5.700 07/01/09 5,116,550 ------------- 26,209,209 ------------- WEST VIRGINIA 1.6% 6,420 Harrison Cnty, WV Cnty Cmnty Solid Waste Disp Rev West PA Pwr Co Ser C (AMT) (AMBAC Insd)..................................... 6.750 08/01/24 6,469,691 3,750 West Virginia Univ Rev Impt Univ Proj Ser C (FGIC Insd)............................. 5.000 10/01/34 3,860,250 ------------- 10,329,941 ------------- WISCONSIN 0.7% 1,715 Wisconsin St Hlth & Ed Fac Auth Rev Bellin Mem Hosp (AMBAC Insd)..................... 6.625 02/15/08 1,773,224 2,675 Wisconsin St Hlth & Ed Fac FH Hlthcare Dev Inc Proj (Prerefunded @ 11/15/09)......... 6.250 11/15/28 2,907,431 ------------- 4,680,655 ------------- WYOMING 0.3% 2,000 Sweetwater Cnty, WY Solid Waste Disp Rev FMC Corp Proj Rfdg (AMT).................. 5.600 12/01/35 2,089,360 ------------- PUERTO RICO 4.6% 21,000 Puerto Rico Comwlth Hwy & Tran Auth Hwy Rev Ser Y Rfdg (FSA Insd) (f)............. 6.250 07/01/21 25,331,670 4,000 Puerto Rico Pub Bldgs Auth Gtd Pub Ed & Hlth Fac Ser M Rfdg (MBIA Insd)........... 5.600 07/01/08 4,158,480 ------------- 29,490,150 ------------- TOTAL LONG-TERM INVESTMENTS 162.5% (Cost $1,005,674,202)....................................................... 1,048,352,432 SHORT-TERM INVESTMENT 0.2% (Cost $1,600,000)........................................................... 1,600,000 ------------- TOTAL INVESTMENTS 162.7% (Cost $1,007,274,202)....................................................... 1,049,952,432 OTHER ASSETS IN EXCESS OF LIABILITIES 2.4%................................... 15,750,470 PREFERRED SHARES (INCLUDING ACCRUED DISTRIBUTIONS) (65.1%)................... (420,395,728) ------------- NET ASSETS APPLICABLE TO COMMON SHARES 100.0%................................ $ 645,307,174 ============= 24 See Notes to Financial Statements VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST II PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued Percentages are calculated as a percentage of net assets applicable to common shares. * Zero coupon bond (a) Security is a "step-up" bond where the coupon increases or steps up at a predetermined date. (b) The Trust owns 100% of the outstanding bond issuance. (c) 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. (d) 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 4.1% of net assets applicable to common shares. (e) Security purchased on a when-issued or delayed delivery basis. (f) All or a portion of this security has been physically segregated in connection with open futures contracts. ACA--American Capital Access AMBAC--AMBAC Indemnity Corp. AMT--Alternative Minimum Tax Connie Lee--Connie Lee Insurance Co. FGIC--Financial Guaranty Insurance Co. FHA/VA--Federal Housing Administration/Department of Veterans Affairs 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. FUTURES CONTRACTS OUTSTANDING AS OF APRIL 30, 2006: UNREALIZED APPRECIATION/ CONTRACTS DEPRECIATION SHORT CONTRACTS: U.S. Treasury Notes 5-Year Futures June 2006 (Current Notional Value of $104,156)............................... 1,219 $1,001,868 ===== ========== See Notes to Financial Statements 25 VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST II PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued 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 $14,720 $ 15,024 JP Morgan Chase Bank, N.A. ............... USD-BMA Municipal Swap Index Receive 4.137 06/28/26 25,020 724,412 -------- $739,436 ======== 26 See Notes to Financial Statements VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST II FINANCIAL STATEMENTS Statement of Assets and Liabilities April 30, 2006 (Unaudited) ASSETS: Total Investments (Cost $1,007,274,202)..................... $1,049,952,432 Cash........................................................ 2,404,388 Receivables: Interest.................................................. 16,670,840 Investments Sold.......................................... 170,233 Swap Contracts.............................................. 739,436 Other....................................................... 5,365 -------------- Total Assets............................................ 1,069,942,694 -------------- LIABILITIES: Payables: Investments Purchased..................................... 2,300,000 Investment Advisory Fee................................... 482,573 Variation Margin on Futures............................... 190,469 Income Distributions--Common Shares....................... 83,932 Other Affiliates.......................................... 34,050 Trustees' Deferred Compensation and Retirement Plans........ 1,028,280 Accrued Expenses............................................ 120,488 -------------- Total Liabilities....................................... 4,239,792 Preferred Shares (including accrued distributions).......... 420,395,728 -------------- NET ASSETS APPLICABLE TO COMMON SHARES...................... $ 645,307,174 ============== NET ASSET VALUE PER COMMON SHARE ($645,307,174 divided by 45,104,827 shares outstanding)............................ $ 14.31 ============== NET ASSETS CONSIST OF: Common Shares ($.01 par value with an unlimited number of shares authorized, 45,104,827 shares issued and outstanding).............................................. $ 451,048 Paid in Surplus............................................. 596,841,830 Net Unrealized Appreciation................................. 44,419,534 Accumulated Net Realized Gain............................... 2,576,111 Accumulated Undistributed Net Investment Income............. 1,018,651 -------------- NET ASSETS APPLICABLE TO COMMON SHARES...................... $ 645,307,174 ============== PREFERRED SHARES ($.01 par value, authorized 100,000,000 shares, 16,800 issued with liquidation preference of $25,000 per share)........................................ $ 420,000,000 ============== NET ASSETS INCLUDING PREFERRED SHARES....................... $1,065,307,174 ============== See Notes to Financial Statements 27 VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST II FINANCIAL STATEMENTS continued Statement of Operations For the Six Months Ended April 30, 2006 (Unaudited) INVESTMENT INCOME: Interest.................................................... $ 15,883,194 ------------ EXPENSES: Investment Advisory Fee..................................... 1,768,534 Preferred Share Maintenance................................. 361,970 Merger Costs................................................ 231,680 Trustees' Fees and Related Expenses......................... 54,355 Custody..................................................... 28,103 Legal....................................................... 27,023 Other....................................................... 153,515 ------------ Total Expenses.......................................... 2,625,180 ------------ NET INVESTMENT INCOME....................................... $ 13,258,014 ============ REALIZED AND UNREALIZED GAIN/LOSS: Realized Gain/Loss: Investments............................................... $ 518,304 Futures................................................... 3,004,556 ------------ Net Realized Gain........................................... 3,522,860 ------------ Unrealized Appreciation/Depreciation During the Period: Investments............................................... (11,141,057) Futures................................................... (232,623) Swap Contracts............................................ 739,436 ------------ Net Unrealized Depreciation During the Period............... (10,634,244) ------------ NET REALIZED AND UNREALIZED LOSS............................ $ (7,111,384) ============ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS..................... $ (4,003,996) ============ NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM OPERATIONS................................................ $ 2,142,634 ============ 28 See Notes to Financial Statements VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST II 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................................... $ 13,258,014 $ 8,251,681 Net Realized Gain....................................... 3,522,860 2,536,969 Net Unrealized Depreciation During the Period........... (10,634,244) (3,710,738) Distributions to Preferred Shareholders: Net Investment Income................................. (3,481,447) (1,682,853) Net Realized Gain..................................... (522,549) -0- ------------ ------------ Change in Net Assets Applicable to Common Shares from Operations............................................ 2,142,634 5,395,059 Distributions to Common Shareholders: Net Investment Income................................. (10,104,604) (7,321,085) Net Realized Gain..................................... (2,120,006) -0- ------------ ------------ NET CHANGE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM INVESTMENT ACTIVITIES............................ (10,081,976) (1,926,026) FROM CAPITAL TRANSACTIONS: Proceeds from Common Shares Acquired Through Merger..... 535,839,011 -0- ------------ ------------ TOTAL INCREASE/DECREASE IN NET ASSETS APPLICABLE TO COMMON SHARES......................................... 525,757,035 (1,926,026) NET ASSETS APPLICABLE TO COMMON SHARES: Beginning of the Period................................. 119,550,139 121,476,165 ------------ ------------ End of the Period (Including accumulated undistributed net investment income of $1,018,651 and $571,973, respectively)......................................... $645,307,174 $119,550,139 ============ ============ See Notes to Financial Statements 29 VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST II 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, APRIL 30, ------------------------------------------------- 2006 2005 2004 2003 2002 (f) 2001 -------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF THE PERIOD...... $ 14.62 $ 14.86 $ 14.69 $ 14.87 $ 14.77 $ 13.46 ------- ------- ------- ------- --------- ------- Net Investment Income........................ .49(a) 1.01 1.05 1.08 1.10 1.12 Net Realized and Unrealized Gain/Loss........ -0-* (.14) .18 (.16) .10 1.23 Common Share Equivalent of Distributions Paid to Preferred Shareholders: Net Investment Income...................... (.09) (.21) (.10) (.10) (.14) (.32) Net Realized Gain.......................... (.06) -0- -0- -0- -0- -0- ------- ------- ------- ------- --------- ------- Total from Investment Operations.............. .34 .66 1.13 .82 1.06 2.03 Distributions Paid to Common Shareholders: Net Investment Income........................ (.39) (.90) (.96) (1.00) (.96) (.72) Net Realized Gain............................ (.26) -0- -0- -0- -0- -0- ------- ------- ------- ------- --------- ------- NET ASSET VALUE, END OF THE PERIOD............ $ 14.31 $ 14.62 $ 14.86 $ 14.69 $ 14.87 $ 14.77 ======= ======= ======= ======= ========= ======= Common Share Market Price at End of the Period....................................... $ 12.96 $ 13.08 $ 14.70 $ 13.90 $ 13.98 $ 12.95 Total Return (b).............................. 3.93%** -5.06% 13.05% 6.57% 15.64% 18.05% Net Assets Applicable to Common Shares at End of the Period (In millions).................. $ 645.3 $ 119.6 $ 121.5 $ 120.0 $ 121.4 $ 120.6 Ratio of Expenses to Average Net Assets Applicable to Common Shares (c).............. 1.34% 1.33% 1.46% 1.48% 1.58% 1.76% Ratio of Net Investment Income to Average Net Assets Applicable to Common Shares (c)....... 6.79% 6.78% 7.14% 7.23% 7.55% 7.89% Portfolio Turnover............................ 10%** 29% 29% 26% 45% 38% SUPPLEMENTAL RATIOS: Ratio of Expenses to Average Net Assets Including Preferred Shares (c)............... .82% .80% .88% .89% .95% 1.04% Ratio of Net Investment Income to Average Net Assets Applicable to Common Shares (d)....... 5.01% 5.40% 6.44% 6.57% 6.59% 5.66% SENIOR SECURITIES: Total Preferred Shares Outstanding............ 16,800 3,200 3,200 3,200 3,200 3,200 Asset Coverage Per Preferred Share (e)........ $63,435 $62,369 $62,967 $62,499 $ 62,954 $62,695 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 * Amount is less than $.01. ** 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) 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 $.02, decrease net realized and unrealized gains and losses per share by $.02 and increase the ratio of net investment income to average net assets applicable to common shares by .17%. Per share, ratios, and supplemental data for periods prior to October 31, 2002 have not been restated to reflect this change in presentation. 30 See Notes to Financial Statements VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST II NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2006 (UNAUDITED) 1. SIGNIFICANT ACCOUNTING POLICIES Van Kampen Advantage Municipal Income Trust II (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 substantially all of its assets in municipal securities rated investment grade at the time of investment. The Trust commenced investment operations on August 27, 1993. 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 $2,300,000 of when-issued or delayed delivery purchase commitment. 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 these losses against any future realized capital gains. During the fiscal year ended October 31, 2005, the Trust utilized capital losses carried forward of $1,168,555. 31 VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST II NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2006 (UNAUDITED) continued At April 30, 2006, the cost and related gross unrealized appreciation and depreciation are as follows: Cost of investments for tax purposes........................ $1,006,373,577 ============== Gross tax unrealized appreciation........................... $ 46,000,868 Gross tax unrealized depreciation........................... (2,422,013) -------------- Net tax unrealized appreciation on investments.............. $ 43,578,855 ============== 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 a portion of futures gains, which are included as ordinary income for tax purposes. The tax character of distributions paid during the year ended October 31, 2005 was as follows: Distributions paid from: Ordinary income........................................... $ 370,024 Tax-exempt income......................................... 8,613,831 Long-term capital gain.................................... -0- ---------- $8,983,855 ========== As of October 31, 2005, the components of distributable earnings on a tax basis were as follows: Undistributed ordinary income............................... $ 259,200 Undistributed tax-exempt income............................. 535,805 Undistributed long-term capital gain........................ 2,641,806 Net realized gains or losses may differ for financial reporting and tax purposes primarily as a result of the deferral of losses relating to wash sales transactions. 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") will provide 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 $11,500 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 $30,300, representing Van Kampen Investments Inc.'s or its affiliates' (collectively "Van Kampen") cost of providing accounting and legal services to the Trust, as 32 VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST II NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2006 (UNAUDITED) continued 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 For the six months ended April 30, 2006 and for the year ended October 31, 2005, transactions in common shares were as follows: SIX MONTHS ENDED YEAR ENDED APRIL 30, 2006 OCTOBER 31, 2005 Beginning Shares........................................ 8,175,881 8,175,881 Shares Issued Through Merger............................ 36,928,946 -0- ---------- --------- Ending Shares........................................... 45,104,827 8,175,881 ========== ========= On January 27, 2006 the Trust acquired all of the assets and liabilities of Van Kampen Municipal Opportunity Trust II (ticker symbol VOT) and Van Kampen Value Municipal Income Trust (ticker symbol VKV) through a tax free reorganization approved by VOT and VKV shareholders on January 11, 2006. The Trust issued 36,928,946 common shares with a net asset value of $535,839,011 and 13,600 Auction Preferred Shares (APS) with a liquidation value of $340,000,000 in exchange for VOT's and VKV's net assets. The shares of VOT were converted into Trust shares at a ratio of 1.025341 to 1 and 1 to 1, for common shares and APS, respectively. The shares of VKV were converted into Trust shares at a ratio of 1.059290 to 1 and 1 to 1, for common shares and APS, respectively. Net unrealized appreciation of VOT and VKV as of January 27, 2006 was $15,400,172 and $31,522,823, respectively. The Trust assumed VOT's and VKV's book to tax accretion differences, which resulted in a $774,715 increase to accumulated undistributed net investment income and a corresponding decrease to net unrealized appreciation. Combined net assets applicable to common shares on the day of the reorganization were $654,455,555 and combined net assets including preferred shares were $1,074,455,555. The Trust incurred merger expenses of $231,680, which represent costs related to the preparation, printing and distribution of the Proxy Statement/Prospectus, Reorganization Agreement and registration statements as well as legal, audit and filing fees. 4. INVESTMENT TRANSACTIONS During the period, the cost of purchases and proceeds from sales of investments, excluding short-term investments, were $72,385,629 and $69,391,744, respectively. 33 VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST II NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2006 (UNAUDITED) continued 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. Risks may arise as a result of the potential inability of the counterparties to meet the terms of their contracts. Summarized below are the specific types of derivative financial instruments used by the Trust. A. FUTURES CONTRACTS A futures contract is an arrangement 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 securities and typically closes the contract prior to the delivery date. These contracts are generally used to manage the Trust'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 the rules and regulations promulgated under the 1940 Act, as amended, or with its custodian in an account in the broker's name. This amount is known as initial margin. During the period the futures contract is open, payments are received from or made to the broker based upon changes in the value of the contract (the variation margin). The risk of loss associated with a futures contract is in excess of the variation margin reflected on the Statement of Assets and Liabilities. Transactions in futures contracts for the six months ended April 30, 2006 were as follows: CONTRACTS Outstanding at October 31, 2005............................. 692 Futures Opened.............................................. 5,855 Futures Closed.............................................. (5,328) ------ Outstanding at April 30, 2006............................... 1,219 ====== B. 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 34 VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST II NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2006 (UNAUDITED) continued other 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. C. 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 specific 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. These instruments are typically used by the Trust to enhance the yield of the portfolio. These instruments are identified in the portfolio of investments. 6. PREFERRED SHARES As of April 30, 2006, the Trust has outstanding 16,800 APS. Series A, Series B, Series C and Series D each contain 1,600 shares, Series E contains 1,400 shares, Series F, Series G, Series H and Series I each contain 2,000 shares and Series J contains 1,000 shares. Dividends are cumulative and the dividend rates are generally reset every 7 days for Series A, Series B, Series C, Series D, Series E, Series F and Series J, while Series G, Series H, and Series I are generally reset every 28 days through an auction process. The average rate in effect on April 30, 2006 was 3.486%. During the six months ended April 30, 2006, the rates ranged from 2.000% to 5.375%. 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 on 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. 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. 35 VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST II DIVIDEND REINVESTMENT PLAN The Trust offers a dividend reinvestment plan (the "Plan") pursuant to which Common Shareholders may elect to have dividends and capital gains distributions reinvested in Common Shares of the Trust. The Trust declares dividends out of net investment income, and will distribute annually net realized capital gains, if any. Common Shareholders may join or withdraw from the Plan at any time. If you decide to participate in the Plan, EquiServe Trust Company, N.A., as your Plan Agent, will automatically invest your dividends and capital gains distributions in Common Shares of the Trust for your account. HOW TO PARTICIPATE If you wish to participate and your shares are held in your own name, call 1-800-341-2929 for more information and a Plan brochure. If your shares are held in the name of a brokerage firm, bank, or other nominee, you should contact your nominee to see if it would participate in the Plan on your behalf. If you wish to participate in the Plan, but your brokerage firm, bank or nominee is unable to participate on your behalf, you should request that your shares be re-registered in your own name which will enable your participation in the Plan. HOW THE PLAN WORKS Participants in the Plan will receive the equivalent in Common Shares valued on the valuation date, generally at the lower of market price or net asset value, except as specified below. The valuation date will be the dividend or distribution payment date or, if that date is not a trading day on the national securities exchange or market system on which the Common Shares are listed for trading, the next preceding trading day. If the market price per Common Share on the valuation date equals or exceeds net asset value per Common Share on that date, the Trust will issue new Common Shares to participants valued at the higher of net asset value or 95% of the market price on the valuation date. In the foregoing situation, the Trust will not issue Common Shares under the Plan below net asset value. If net asset value per Common Share on the valuation date exceeds the market price per Common Share on that date, or if the Board of Trustees should declare a dividend or capital gains distribution payable to the Common Shareholders only in cash, participants in the Plan will be deemed to have elected to receive Common Shares from the Trust valued at the market price on that date. Accordingly, in this circumstance, the Plan Agent will, as agent for the participants, buy the Trust's Common Shares in the open market for the participants' accounts on or shortly after the payment date. If, before the Plan Agent has completed its purchases, the market price exceeds the net asset value per share of the Common Shares, the average per share purchase price paid by the Plan Agent may exceed the net asset value 36 VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST II DIVIDEND REINVESTMENT PLAN continued of the Trust's Common Shares, resulting in the acquisition of fewer Common Shares than if the dividend or distribution had been paid in Common Shares issued by the Trust. All reinvestments are in full and fractional Common Shares and are carried to three decimal places. Experience under the Plan may indicate that changes are desirable. Accordingly, the Trust reserves the right to amend or terminate the Plan as applied to any dividend or distribution paid subsequent to written notice of the changes sent to all Common Shareholders of the Trust at least 90 days before the record date for the dividend or distribution. The Plan also may be amended or terminated by the Plan Agent by at least 90 days written notice to all Common Shareholders of the Trust. COSTS OF THE PLAN The Plan Agent's fees for the handling of the reinvestment of dividends and distributions will be paid by the Trust. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agent's open market purchases in connection with the reinvestment of dividends and distributions. No other charges will be made to participants for reinvesting dividends or capital gains distributions, except for certain brokerage commissions, as described above. TAX IMPLICATIONS You will receive tax information annually for your personal records and to help you prepare your federal income tax return. The automatic reinvestment of dividends and capital gains distributions does not relieve you of any income tax which may be payable on dividends or distributions. RIGHT TO WITHDRAW Plan participants may withdraw at any time by calling 1-800-341-2929 or by writing EquiServe Trust Company, N.A., c/o Computershare Investor Services, P.O. Box 43010, Providence, Rhode Island 02940-3010. If you withdraw, you will receive, without charge, a share certificate issued in your name for all full Common Shares credited to your account under the Plan and a cash payment will be made for any fractional Common Share credited to your account under the Plan. You may again elect to participate in the Plan at any time by calling 1-800-341-2929 or writing to the Trust at: Van Kampen Funds Inc. Attn: Closed-End Funds 2800 Post Oak Blvd. Houston, TX 77056 37 VAN KAMPEN ADVANTAGE MUNICIPAL INCOME TRUST II 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 ADVANTAGE MUNICIPAL INCOME TRUST II RESULTS OF SHAREHOLDER VOTES With regard to the approval of the issuance of additional common shares of the Trust, a meeting was held on January 11, 2006, and the results of the votes from the common shareholders is as follows: # OF SHARES -------------------------------------- IN FAVOR AGAINST WITHHELD -------------------------------------- 3,629,772 300,271 195,017 39 Van Kampen Advantage Municipal Income Trust II 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 Advantage Municipal Income Trust II 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 Advantage Municipal Income Trust II 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. VKI SAR 6/06 (VAN KAMPEN INVESTMENTS SHINE LOGO) RN06-01541P-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 Advantage Municipal Income Trust II 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 ----------------------------- Name: Ronald E. Robison Title: Principal Executive Officer Date: June 20, 2006 By: /s/ Phillip G. Goff ----------------------------- Name: Phillip G. Goff Title: Principal Financial Officer Date: June 20, 2006