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 811-02851
Van Kampen High Yield Fund
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(Exact name of registrant as specified in charter)
522 Fifth Avenue, New York, New York 10036
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(Address of principal executive offices) (Zip code)
Ronald Robison
522 Fifth Avenue, New York, New York 10036
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(Name and address of agent for service)
Registrant's telephone number, including area code: 212-762-4000
Date of fiscal year end: 8/31
Date of reporting period: 2/29/08
Item 1. Reports to Shareholders.
The Fund's semiannual report transmitted to shareholders pursuant to Rule 30e-1
under the Investment Company Act of 1940 is as follows:
Welcome, Shareholder
In this report, you'll learn about how your investment in Van Kampen High
Yield Fund performed during the semiannual period. The portfolio
management team will provide an overview of the market conditions and
discuss some of the factors that affected investment performance during
the reporting period. In addition, this report includes the fund's
financial statements and a list of fund investments as of February 29,
2008.
THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY A CLASS A, B, AND C
SHARE OR CLASS I SHARE PROSPECTUS FOR THE FUND BEING OFFERED. THE
PROSPECTUSES CONTAIN INFORMATION ABOUT THE FUND, INCLUDING THE INVESTMENT
OBJECTIVES, RISKS, CHARGES AND EXPENSES. TO OBTAIN AN ADDITIONAL
PROSPECTUS, CONTACT YOUR FINANCIAL ADVISOR OR DOWNLOAD ONE AT
VANKAMPEN.COM. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.
MARKET FORECASTS PROVIDED IN THIS REPORT MAY NOT NECESSARILY COME TO
PASS. THERE IS NO ASSURANCE THAT THE FUND WILL ACHIEVE ITS INVESTMENT
OBJECTIVE. THE FUND IS SUBJECT TO MARKET RISK, WHICH IS THE POSSIBILITY
THAT THE MARKET VALUES OF SECURITIES OWNED BY THE FUND WILL DECLINE AND,
THEREFORE, THE VALUE OF THE FUND SHARES MAY BE LESS THAN WHAT YOU PAID
FOR THEM. ACCORDINGLY, YOU CAN LOSE MONEY INVESTING IN THIS FUND. PLEASE
SEE THE PROSPECTUS FOR MORE COMPLETE INFORMATION ON INVESTMENT RISKS.
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NOT FDIC INSURED OFFER NO BANK GUARANTEE MAY LOSE VALUE
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NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY NOT A DEPOSIT
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Performance Summary as of 2/29/08
A SHARES B SHARES C SHARES I SHARES
since 10/2/78 since 7/2/92 since 7/6/93 since 3/23/05
------------------------------------------------------------------------------------------------------
W/MAX W/MAX W/MAX
AVERAGE 4.75% 4.00% 1.00%
ANNUAL W/O SALES SALES W/O SALES SALES W/O SALES SALES W/O SALES
TOTAL RETURNS CHARGES CHARGES CHARGES CHARGES CHARGES CHARGES CHARGES
Since Inception 7.17% 6.99% 5.14% 5.14% 4.24% 4.24% 4.66%
10-year 2.35 1.85 1.70 1.70 1.58 1.58 --
5-year 8.38 7.33 7.59 7.37 7.61 7.61 --
1-year 0.35 -4.44 -0.40 -4.14 -0.40 -1.33 0.60
6-month 0.54 -4.25 0.17 -3.71 0.17 -0.80 0.67
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30-Day SEC Yield 7.41% 6.96% 7.08% 8.04%
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS, AND CURRENT PERFORMANCE MAY
BE LOWER OR HIGHER THAN THE FIGURES SHOWN. FOR THE MOST RECENT MONTH-END
PERFORMANCE FIGURES, PLEASE VISIT VANKAMPEN.COM OR SPEAK WITH YOUR FINANCIAL
ADVISOR. INVESTMENT RETURNS AND PRINCIPAL VALUE WILL FLUCTUATE AND FUND SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
The returns shown in this report do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund shares.
Performance of share classes will vary due to differences in sales charges and
expenses. As a result of recent market activity, current performance may vary
from the figures shown. Average annual total return with sales charges includes
payment of the maximum sales charge of 4.75 percent for Class A shares, a
contingent deferred sales charge of 4.00 percent for Class B shares (in years
one and two and declining to zero after year five), a contingent deferred sales
charge of 1.00 percent for Class C shares in year one and combined Rule 12b-1
fees and service fees of up to 0.25 percent for Class A shares and up to 1.00
percent for Class B and C shares. The since inception and ten year returns for
Class B shares reflect the conversion of Class B shares into Class A shares
eight years after purchase. The since inception returns for Class C shares
reflect the conversion of Class C shares into Class A shares ten years after
purchase. Class I shares are available for purchase exclusively by investors
through (i) tax-exempt retirement plans with assets of at least $1 million
(including 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit
sharing and money purchase plans, defined benefit plans and non-qualified
deferred compensation plans), (ii) fee-based investment programs with assets of
at least $1 million, (iii) qualified state tuition plan (529 plan) accounts,
(iv) institutional clients with assets of at least $1 million and (v) certain
Van Kampen investment companies. Class I shares are offered without any sales
charges on purchases or sales and do not include combined rule 12b-1 fees and
service fees. Figures shown above assume reinvestment of all dividends and
capital gains. SEC yield is a calculation for determining the amount of
portfolio income, excluding non-income items as prescribed by the SEC. Yields
are subject to change.
The Lehman Brothers U.S. Corporate High Yield-2% Issuer Cap Index is a
broad-based index that reflects the general performance of the U.S. dollar
denominated, fixed-rate, non-investment grade, taxable corporate bond market.
Issuers are capped at 2% of the index. Lipper High Yield Current Bond Fund Index
is an index of funds with similar investment objectives as this fund. Indexes do
not include any expenses, fees or sales charges, which would lower performance.
Indexes are unmanaged and should not be considered an investment.
1
Fund Report
FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 29, 2008
MARKET CONDITIONS
After a robust third quarter, when gross domestic product (GDP) growth measured
4.9 percent, the economy began to slow in the fourth quarter of 2007, triggering
fears of an impending recession. Economic data released in the first two months
of 2008, including higher jobless claims, accelerating housing price declines,
weakening consumer confidence and rising consumer and corporate defaults
appeared to confirm these fears. At the same time, problems related to liquidity
and additional credit write downs continued to plague the markets, creating a
volatile and risk-averse environment in which virtually all assets classes
except Treasury bonds struggled.
Although the Federal Open Market Committee (the "Fed") made ongoing efforts to
boost liquidity and the economy through a series of interest rate cuts, the
reductions did little to quell investor apprehension as the market continued to
price in a greater likelihood of recession, higher defaults, and ongoing
liquidity problems. The result has been a persistent flight to quality and the
underperformance of high yield bonds versus Treasuries. Although the high yield
market did outperform equities throughout the six-month reporting period,
returns remained in negative territory as spreads continued to widen, closing
the period at 785 basis points over Treasuries -- the widest level in four
years. As would be expected in this environment, higher quality bonds
consistently outperformed lower quality issues within the high yield sector and
new issue supply waned considerably.
High yield industry performance varied, but for the overall period, the health
care, utilities, supermarkets and aerospace/defense sectors were the best
performers, all of which posted positive returns. The worst performing sectors
were financial, media, cable, and construction machinery. Although home
construction was among the worst performing sectors for the fourth quarter of
2007, it rebounded in the first two months of 2008 to place within the top
performing sectors of the high yield market.
2
PERFORMANCE ANALYSIS
All share classes of Van Kampen High Yield Fund outperformed the Lehman Brothers
U.S. Corporate High Yield-2% Issuer Cap Index and the Lipper High Current Yield
Bond Fund Index for the six months ended February 29, 2008, assuming no
deduction of applicable sales charges.
TOTAL RETURNS FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 29, 2008
----------------------------------------------------------------------------------------
LEHMAN BROTHERS
U.S. CORPORATE LIPPER HIGH
HIGH YIELD 2% CURRENT YIELD
CLASS A CLASS B CLASS C CLASS I ISSUER CAP INDEX BOND FUND INDEX
0.54% 0.17% 0.17% 0.67% -1.39% -2.20%
----------------------------------------------------------------------------------------
The performance for the four share classes varies because each has different
expenses. The Fund's total return figures assume the reinvestment of all
distributions, but do not reflect the deduction of any applicable sales charges.
Such costs would lower performance. Past performance is no guarantee of future
results. See Performance Summary for standardized performance information and
index definitions.
We continued to position the Fund defensively, a strategy we have been pursuing
for some time now and which was beneficial throughout the reporting period. We
did so by maintaining a higher overall credit quality within the portfolio than
that of the Lehman Brothers U.S. Corporate High Yield-2% Issuer Cap Index. This
positioning was the primary driver of the Fund's relative outperformance, as the
lower quality segment of the market has been underperforming.
We positioned the portfolio to benefit from a steepening yield curve, which
proved advantageous during the period as interest rates declined, particularly
on the short end of the curve, causing the curve to steepen significantly.
With regard to sector allocations, an emphasis on health care bonds was
beneficial. This was the top performing sector for the six-month period and the
Fund's overweight here versus the Lehman Brothers U.S. Corporate High Yield-2%
Issuer Cap Index enhanced relative performance. An underweight to the media and
cable sectors throughout much of the period was also additive to performance as
they were among the worst performing industries. Security selection in cable and
retail also contributed to returns.
The primary detractor from the Fund's relative performance was its holdings in
mortgage securities for the period. Although the allocation to these securities
was relatively small, mortgage securities are not represented in the Lehman
Brothers U.S. Corporate High Yield-2% Issuer Cap Index and the portfolio's
exposure here held back relative returns.
We continued to seek to maintain a balanced and well-diversified portfolio,
while allowing for strategic overweights in securities and sectors that we
believed possessed the most attractive risk profiles. In terms of issuer size,
we
3
focused on larger companies because of their financial flexibility, their
ability to withstand less favorable financial conditions, and their superior
access to capital markets. Over the course of the period, this led us to
increase the Fund's exposure to the cable, telecommunications, and media sectors
and decrease exposure to the manufacturing and building products/home builders
sectors. As of the end of the period, the Fund's major sector overweights
relative to the Lehman Brothers U.S. Corporate High Yield-2% Issuer Cap Index
were in the health care, energy, chemicals, and food/tobacco sectors. The Fund's
major sector underweights relative to the Index were in technology, building
product/home builders, manufacturing, and retail.
With the increasing prospects for a recession this year, yield spreads have
widened to levels well above long-term averages. In our opinion, spreads are now
much more reasonable than they were in early 2007, but are still not overly
attractive. In the last two recessions, spreads widened to more than 1,000 basis
points over Treasures. While we are not certain spreads will reach this level,
we do believe they are likely to widen further in the coming months. Therefore,
we believe it is prudent to maintain the Fund's defensive positioning but will
continue to look for attractive opportunities to add value to the portfolio.
There is no guarantee that any sectors mentioned will continue to perform as
discussed herein or that securities in such sectors will be held by the Fund in
the future.
4
RATINGS ALLOCATION AS OF 2/29/08
AAA/Aaa 1.0%
AA/Aa 1.1
A/A 0.7
BBB/Baa 9.4
BB/Ba 26.0
B/B 54.4
CCC/Caa 5.7
Non-Rated 1.7
SUMMARY OF INVESTMENTS BY INDUSTRY CLASSIFICATION AS OF 2/29/08
Health Care 11.5%
Utility 10.0
Energy 9.0
Transportation 8.6
Gaming & Leisure 7.6
Forest Products 5.2
Chemicals 4.9
Cable 4.2
Food & Tobacco 4.0
Information Technology 3.6
Telecommunications 3.4
Diversified Media 3.3
Food & Drug 2.8
Manufacturing 2.5
Collateralized Mortgage Obligation 2.2
Housing 2.1
Metals 1.9
Services 1.9
Retail 1.6
Wireless Communications 1.3
Consumer Products 1.2
Broadcasting 0.8
Financial 0.8
Sovereigns 0.5
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Total Long-Term Investments 94.9
Total Short-Term Investments 2.5
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Total Investments 97.4
Foreign Currency 0.0*
Other Assets in Excess of Liabilities 2.6
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Net Assets 100.0%
* Amount is less than 0.1%
Subject to change daily. Provided for informational purposes only and should not
be deemed as a recommendation to buy or sell the securities mentioned or
securities in the industries shown above. Ratings allocations are as a
percentage of debt obligations. Industry allocations are as a percentage of net
assets. Van Kampen is a wholly owned subsidiary of a global securities firm
engaged in a wide range of financial services including, for example, securities
trading and brokerage activities, investment banking, research and analysis,
financing and financial advisory services. Ratings allocations based upon
ratings as issued by Standard and Poor's and Moody's, respectively.
5
FOR MORE INFORMATION ABOUT PORTFOLIO HOLDINGS
Each Van Kampen fund provides a complete schedule of portfolio holdings
in its semiannual and annual reports within 60 days of the end of the
fund's second and fourth fiscal quarters. The semiannual reports and the
annual reports are filed electronically with the Securities and Exchange
Commission (SEC) on Form N-CSRS and Form N-CSR, respectively. Van Kampen
also delivers the semiannual and annual reports to fund shareholders, and
makes these reports available on its public Web site, www.vankampen.com.
In addition to the semiannual and annual reports that Van Kampen delivers
to shareholders and makes available through the Van Kampen public Web
site, each fund files a complete schedule of portfolio holdings with the
SEC for the fund's first and third fiscal quarters on Form N-Q. Van
Kampen does not deliver the reports for the first and third fiscal
quarters to shareholders, nor are the reports posted to the Van Kampen
public Web site. You may, however, obtain the Form N-Q filings (as well
as the Form N-CSR and N-CSRS filings) by accessing the SEC's Web site,
http://www.sec.gov. You may also review and copy them at the SEC's Public
Reference Room in Washington, DC. Information on the operation of the
SEC's Public Reference Room may be obtained by calling the SEC at (800)
SEC-0330. You can also request copies of these materials, upon payment of
a duplicating fee, by electronic request at the SEC's email address
(publicinfo@sec.gov) or by writing the Public Reference section of the
SEC, Washington, DC 20549-0102.
You may obtain copies of a fund's fiscal quarter filings by contacting
Van Kampen Client Relations at (800) 847-2424.
6
HOUSEHOLDING NOTICE
To reduce Fund expenses, the Fund attempts to eliminate duplicate
mailings to the same address. The Fund delivers a single copy of certain
shareholder documents to investors who share an address, even if the
accounts are registered under different names. The Fund's prospectuses
and shareholder reports (including annual privacy notices) will be
delivered to you in this manner indefinitely unless you instruct us
otherwise. You can request multiple copies of these documents by either
calling (800) 341-2911 or writing to Van Kampen Investor Services at P.O.
Box 219286, Kansas City, MO 64121-9286. Once Investor Services has
received your instructions, we will begin sending individual copies for
each account within 30 days.
PROXY VOTING POLICY AND PROCEDURES AND PROXY VOTING RECORD
You may obtain a copy of the Fund's Proxy Voting Policy and Procedures
without charge, upon request, by calling toll free (800) 847-2424 or by
visiting our Web site at www.vankampen.com. It is also available on the
Securities and Exchange Commission's Web site at http://www.sec.gov.
You may obtain information regarding how the Fund voted proxies relating
to portfolio securities during the most recent twelve-month period ended
June 30 without charge by visiting our Web site at www.vankampen.com.
This information is also available on the Securities and Exchange
Commission's Web site at http://www.sec.gov.
7
Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments of Class A Shares
and contingent deferred sales charges on redemptions of Class B and Class C
Shares; and redemption fees; and (2) ongoing costs, including management fees;
distribution and service (12b-1) fees; and other Fund expenses. This example is
intended to help you understand your ongoing costs (in dollars) of investing in
the Fund and to compare these costs with the ongoing costs of investing in other
mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period 9/1/07 - 2/29/08.
ACTUAL EXPENSE
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing cost of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) or contingent deferred sales charges or redemption fees.
Therefore, the second line of the table is useful in comparing ongoing costs
only, and will not help you determine the relative total costs of owning
different funds. In addition, if these transactional costs were included, your
costs would have been higher.
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
------------------------------------------------
9/1/07 2/29/08 9/1/07-2/29/08
Class A
Actual............................................. $1,000.00 $1,005.44 $4.94
Hypothetical....................................... 1,000.00 1,019.94 4.97
(5% annual return before expenses)
Class B
Actual............................................. 1,000.00 1,001.67 8.66
Hypothetical....................................... 1,000.00 1,016.21 8.72
(5% annual return before expenses)
Class C
Actual............................................. 1,000.00 1,001.75 8.66
Hypothetical....................................... 1,000.00 1,016.21 8.72
(5% annual return before expenses)
Class I
Actual............................................. 1,000.00 1,006.72 3.74
Hypothetical....................................... 1,000.00 1,021.13 3.77
(5% annual return before expenses)
* Expenses are equal to the Fund's annualized expense ratio of 0.96%, 1.72%,
1.72%, and 0.73%, for Class A, B, C and I Shares, respectively, multiplied
by the average account value over the period, multiplied by 182/366 (to
reflect the one-half year period).
Assumes all dividends and distributions were reinvested.
8
VAN KAMPEN HIGH YIELD FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 29, 2008 (UNAUDITED)
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
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CORPORATE BONDS 91.9%
BROADCASTING 0.8%
$ 2,880 LIN Television Corp. ........................ 6.500% 05/15/13 $ 2,620,800
2,065 Univision Communications, Inc. (a) (b)....... 9.750 03/15/15 1,435,175
------------
4,055,975
------------
CABLE 4.2%
6,005 Cablevision Systems Corp. Ser B (c).......... 9.644 04/01/09 6,035,025
1,839 CCH I LLC.................................... 11.000 10/01/15 1,287,300
1,355 CCH II LLC................................... 10.250 09/15/10 1,246,600
5,320 Echostar DBS Corp. .......................... 6.375 10/01/11 5,253,500
550 Echostar DBS Corp. .......................... 6.625 10/01/14 530,750
460 Intelsat Subsidiary Holding Co., Ltd.
(Bermuda).................................... 8.250 01/15/13 462,300
4,315 Intelsat Subsidiary Holding Co., Ltd.
(Bermuda).................................... 8.625 01/15/15 4,336,575
655 NTL Cable, PLC (United Kingdom).............. 8.750 04/15/14 563,300
360 NTL Cable, PLC (United Kingdom).............. 9.125 08/15/16 304,200
898 PanAmSat Corp. .............................. 9.000 08/15/14 902,490
------------
20,922,040
------------
CHEMICALS 4.9%
4,295 Berry Plastics Holding Corp. ................ 8.875 09/15/14 3,811,812
2,235 Berry Plastics Holding Corp. ................ 10.250 03/01/16 1,776,825
1,715 Innophos Holdings, Inc. (b).................. 9.500 04/15/12 1,646,400
2,700 Innophos, Inc. .............................. 8.875 08/15/14 2,646,000
2,585 Koppers Holdings, Inc. (d)................... 0/9.875 11/15/14 2,210,175
1,730 Koppers, Inc. ............................... 9.875 10/15/13 1,838,125
2,775 Nalco Co. ................................... 7.750 11/15/11 2,816,625
EUR
1,390 Rockwood Specialties Group, Inc. ............ 7.625 11/15/14 1,899,207
3,185 Terra Capital, Inc. ......................... 7.000 02/01/17 3,145,188
2,940 Westlake Chemical Corp. ..................... 6.625 01/15/16 2,616,600
------------
24,406,957
------------
CONSUMER PRODUCTS 1.2%
3,740 Jarden Corp. ................................ 7.500 05/01/17 3,295,875
2,460 Oxford Industrials, Inc. .................... 8.875 06/01/11 2,373,900
------------
5,669,775
------------
DIVERSIFIED MEDIA 3.3%
5,612 CanWest Media, Inc. (Canada)................. 8.000 09/15/12 5,303,196
3,587 Dex Media West/Finance Corp., LLC Ser B...... 9.875 08/15/13 3,022,048
4,700 Idearc, Inc. ................................ 8.000 11/15/16 2,796,500
2,250 Interpublic Group of Cos., Inc. ............. 6.250 11/15/14 1,811,250
4,020 Valassis Communications, Inc. ............... 8.250 03/01/15 3,417,000
------------
16,349,994
------------
ENERGY 9.0%
4,700 Chaparral Energy, Inc. ...................... 8.500 12/01/15 4,018,500
705 Chaparral Energy, Inc. ...................... 8.875 02/01/17 606,300
2,325 Chesapeake Energy Corp. ..................... 6.375 06/15/15 2,261,062
2,965 Chesapeake Energy Corp. ..................... 7.500 09/15/13 3,061,362
960 Cimarex Energy Co. .......................... 7.125 05/01/17 945,600
See Notes to Financial Statements 9
VAN KAMPEN HIGH YIELD FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
-----------------------------------------------------------------------------------------
ENERGY (CONTINUED)
$ 2,220 Compagnie Generale de Geophysique SA
(France)..................................... 7.500% 05/15/15 $ 2,242,200
2,800 Helix Energy Solutions Group, Inc. (b)....... 9.500 01/15/16 2,814,000
6,270 Hilcorp Energy/Finance Corp. (b)............. 7.750 11/01/15 5,940,825
3,460 Husky Oil, Ltd. (Canada)..................... 8.900 08/15/28 3,522,886
4,785 Kinder Morgan Finance Co. (Canada)........... 5.700 01/05/16 4,473,975
5,555 Massey Energy Co. ........................... 6.875 12/15/13 5,416,125
2,635 OPTI Canada, Inc. (Canada) (b)............... 8.250 12/15/14 2,615,238
3,450 Pacific Energy Partners, LP.................. 7.125 06/15/14 3,657,828
2,820 SandRidge Energy, Inc.
(Senior Unsecured Term Loan) (b)............. 8.625 04/01/15 2,749,500
------------
44,325,401
------------
FINANCIAL 0.8%
840 Capmark Financial Group, Inc. (b)............ 5.875 05/10/12 569,423
350 Capmark Financial Group, Inc. (b)............ 6.300 05/10/17 229,386
100 Two-Rock Pass Through Trust (Bermuda) (b)
(c).......................................... 4.036 02/11/49 40,000
1,031 UCAR Finance, Inc. .......................... 10.250 02/15/12 1,069,662
2,200 Washington Mutual Preferred Funding (b)
(e).......................................... 9.750 10/29/49 1,894,812
------------
3,803,283
------------
FOOD & DRUG 2.8%
2,392 Delhaize America, Inc. ...................... 9.000 04/15/31 2,912,662
3,070 Kroger Co. (b)............................... 8.500 07/15/17 3,531,614
4,280 Rite Aid Corp. .............................. 8.125 05/01/10 4,151,600
2,345 SUPERVALU, Inc. ............................. 7.500 05/15/12 2,420,392
1,305 SUPERVALU, Inc. ............................. 7.500 11/15/14 1,301,737
------------
14,318,005
------------
FOOD & TOBACCO 4.0%
2,320 Constellation Brands, Inc. .................. 7.250 05/15/17 2,244,600
3,000 Michael Foods, Inc. ......................... 8.000 11/15/13 2,902,500
5,520 Pilgrim's Pride Corp. ....................... 7.625 05/01/15 5,299,200
3,055 Reynolds American, Inc. ..................... 6.500 07/15/10 3,193,462
4,565 Smithfield Foods, Inc. ...................... 7.000 08/01/11 4,473,700
450 Smithfield Foods, Inc. Ser B................. 7.750 05/15/13 444,375
1,080 Smithfield Foods, Inc. Ser B................. 8.000 10/15/09 1,098,900
------------
19,656,737
------------
FOREST PRODUCTS 5.2%
1,490 Crown Americas LLC........................... 7.625 11/15/13 1,516,075
EUR
1,975 Crown European Holdings SA (France).......... 6.250 09/01/11 2,870,918
3,610 Georgia-Pacific Corp. (b).................... 7.125 01/15/17 3,375,350
1,345 Graham Packaging Co., Inc. .................. 8.500 10/15/12 1,213,862
3,965 Graham Packaging Co., Inc. .................. 9.875 10/15/14 3,399,988
4,870 Graphic Packaging International, Inc. ....... 9.500 08/15/13 4,614,325
2,100 Owens-Illinois, Inc. ........................ 7.350 05/15/08 2,105,250
10 See Notes to Financial Statements
VAN KAMPEN HIGH YIELD FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
-----------------------------------------------------------------------------------------
FOREST PRODUCTS (CONTINUED)
$ 5,540 Owens-Illinois, Inc. ........................ 7.500% 05/15/10 $ 5,692,350
1,085 P.H. Glatfelter.............................. 7.125 05/01/16 1,082,288
------------
25,870,406
------------
GAMING & LEISURE 7.6%
5,625 Harrah's Operating Co., Inc. ................ 5.375 12/15/13 3,754,688
5,000 Host Marriott LP............................. 6.375 03/15/15 4,700,000
4,000 Host Marriott LP Ser J....................... 7.125 11/01/13 3,960,000
6,935 Isle of Capri Casinos, Inc. ................. 7.000 03/01/14 4,767,812
5,440 Las Vegas Sands Corp. ....................... 6.375 02/15/15 4,787,200
9,470 MGM Mirage, Inc. ............................ 6.000 10/01/09 9,470,000
3,005 Station Casinos, Inc. ....................... 6.000 04/01/12 2,554,250
3,795 Station Casinos, Inc. ....................... 6.875 03/01/16 2,409,825
1,085 Station Casinos, Inc. ....................... 7.750 08/15/16 908,688
------------
37,312,463
------------
HEALTH CARE 11.5%
2,885 Community Health Systems, Inc. .............. 8.875 07/15/15 2,845,331
3,745 DaVita, Inc. ................................ 6.625 03/15/13 3,688,825
4,345 Fisher Scientific International, Inc. ....... 6.125 07/01/15 4,389,336
4,050 FMC Finance III SA (Luxembourg).............. 6.875 07/15/17 4,080,375
9,830 Fresenius Medical Care Capital Trust IV...... 7.875 06/15/11 10,223,200
2,545 HCA, Inc. ................................... 5.750 03/15/14 2,118,713
3,810 HCA, Inc. ................................... 6.250 02/15/13 3,324,225
4,795 HCA, Inc. ................................... 6.500 02/15/16 4,075,750
940 HCA, Inc. ................................... 8.750 09/01/10 949,400
545 HCA, Inc. ................................... 9.125 11/15/14 557,263
680 Invacare Corp. .............................. 9.750 02/15/15 690,200
1,790 LVB Acquisition Merger Sub, Inc. (a) (b)..... 10.375 10/15/17 1,834,750
2,655 National Mentor Holdings, Inc. .............. 11.250 07/01/14 2,747,925
3,885 Omnicare, Inc. .............................. 6.750 12/15/13 3,477,075
750 Omnicare, Inc. .............................. 6.875 12/15/15 658,125
2,215 Sun Healthcare Group, Inc. .................. 9.125 04/15/15 2,143,013
5,500 Tenet Healthcare Corp. ...................... 7.375 02/01/13 4,798,750
1,710 Tenet Healthcare Corp. ...................... 9.875 07/01/14 1,605,262
2,699 Warner Chilcott Corp. ....................... 8.750 02/01/15 2,732,737
------------
56,940,255
------------
HOUSING 2.1%
1,435 Interface, Inc. ............................. 10.375 02/01/10 1,506,750
3,365 Interface, Inc. Ser B........................ 9.500 02/01/14 3,482,775
5,130 Nortek, Inc. ................................ 8.500 09/01/14 4,001,400
445 Pulte Homes, Inc. ........................... 6.375 05/15/33 347,100
1,550 Realogy Corp. ............................... 10.500 04/15/14 1,108,250
------------
10,446,275
------------
INFORMATION TECHNOLOGY 3.3%
1,505 First Data Corp. (b)......................... 9.875 09/24/15 1,307,469
4,700 Freescale Semiconductor, Inc. ............... 8.875 12/15/14 3,854,000
See Notes to Financial Statements 11
VAN KAMPEN HIGH YIELD FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
-----------------------------------------------------------------------------------------
INFORMATION TECHNOLOGY (CONTINUED)
$ 525 Iron Mountain, Inc. ......................... 6.625% 01/01/16 $ 502,687
2,050 Iron Mountain, Inc. ......................... 7.750 01/15/15 2,065,375
3,070 Iron Mountain, Inc. ......................... 8.625 04/01/13 3,108,375
3,540 Sungard Data Systems, Inc. .................. 9.125 08/15/13 3,584,250
2,275 Vangent, Inc. ............................... 9.625 02/15/15 1,720,469
------------
16,142,625
------------
MANUFACTURING 2.5%
1,295 Baldor Electric Co. ......................... 8.625 02/15/17 1,275,575
EUR
1,959 JohnsonDiversey, Inc. ....................... 9.625 05/15/12 2,736,133
3,463 JohnsonDiversey, Inc. Ser B.................. 9.625 05/15/12 3,463,000
3,235 Propex Fabrics, Inc. (f)..................... 10.000 12/01/12 404,375
4,660 RBS Global, Inc. & Rexnord Corp. ............ 9.500 08/01/14 4,217,300
------------
12,096,383
------------
METALS 1.9%
1,340 Foundation PA Coal Co. ...................... 7.250 08/01/14 1,333,300
2,640 Freeport McMoRan Cooper & Gold, Inc. ........ 8.375 04/01/17 2,805,000
5,690 Novelis, Inc. (Canada)....................... 7.250 02/15/15 5,149,450
------------
9,287,750
------------
RETAIL 1.6%
3,350 Brown Shoe Co., Inc. ........................ 8.750 05/01/12 3,366,750
4,305 Phillips-Van Heusen Corp. ................... 7.250 02/15/11 4,348,050
------------
7,714,800
------------
SERVICES 1.9%
4,795 Allied Waste North America, Inc. ............ 6.375 04/15/11 4,723,075
1,850 Allied Waste North America, Inc. ............ 7.875 04/15/13 1,898,563
1,750 Aramark Services, Inc. ...................... 5.000 06/01/12 1,531,250
250 Aramark Services, Inc. (c)................... 6.739 02/01/15 220,000
790 Aramark Services, Inc. ...................... 8.500 02/01/15 782,100
------------
9,154,988
------------
TELECOMMUNICATIONS 3.4%
3,986 Axtel SA (Mexico)............................ 11.000 12/15/13 4,384,600
1,535 Citizens Communications Co. ................. 6.250 01/15/13 1,419,875
6,030 Exodus Communications, Inc. (f) (g) (h)...... 11.250 07/01/08 0
EUR
4,000 Exodus Communications, Inc. (f) (g) (h)...... 11.375 07/15/08 0
770 Exodus Communications, Inc. (f) (g) (h)...... 11.625 07/15/10 0
8,250 GST Network Funding, Inc. (f) (g) (h)........ 10.500 05/01/08 825
1,320 Nordic Telephone Co. Holdings (Denmark)
(b).......................................... 8.875 05/01/16 1,306,800
4,000 Park N View, Inc. Ser B (f) (g) (h).......... 13.000 05/15/08 0
2,179 Qwest Communications International, Inc.
(c).......................................... 6.565 02/15/09 2,173,552
990 Qwest Corp. ................................. 5.625 11/15/08 990,000
EUR
1,100 TDC A S (Denmark)............................ 6.500 04/19/12 1,595,653
3,340 Wind Acquisition Finance SA (Luxembourg)
(b).......................................... 10.750 12/01/15 3,398,450
1,410 Windstream Corp. ............................ 8.125 08/01/13 1,413,525
------------
16,683,280
------------
12 See Notes to Financial Statements
VAN KAMPEN HIGH YIELD FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
-----------------------------------------------------------------------------------------
TRANSPORTATION 8.6%
$ 4,185 ArvinMeritor, Inc. .......................... 8.750% 03/01/12 $ 3,829,275
1,610 Asbury Automotive Group, Inc. ............... 7.625 03/15/17 1,279,950
6,870 CHC Helicopter Corp. (Canada)................ 7.375 05/01/14 6,852,825
8,460 Ford Motor Credit Co. ....................... 7.000 10/01/13 6,949,594
7,670 Ford Motor Credit Co. ....................... 7.250 10/25/11 6,565,106
7,420 General Motors Acceptance Corp. ............. 6.875 09/15/11 6,058,638
2,195 General Motors Corp. ........................ 8.375 07/15/33 1,690,150
2,955 Penske Automotive Group, Inc. ............... 7.750 12/15/16 2,541,300
7,170 Sonic Automotive, Inc. Ser B................. 8.625 08/15/13 6,712,912
------------
42,479,750
------------
UTILITY 10.0%
925 AES Corp. ................................... 7.750 03/01/14 941,187
528 AES Corp. ................................... 8.875 02/15/11 554,400
740 AES Corp. ................................... 9.375 09/15/10 784,400
7,500 Colorado Interstate Gas Co. ................. 6.800 11/15/15 7,935,097
3,150 Dynegy Holdings, Inc. ....................... 7.750 06/01/19 2,945,250
3,380 Intergen NV (Netherlands) (b)................ 9.000 06/30/17 3,549,000
2,585 IPALCO Enterprises, Inc. .................... 8.375 11/14/08 2,617,312
1,355 IPALCO Enterprises, Inc. .................... 8.625 11/14/11 1,429,525
2,945 Nevada Power Co. Ser A....................... 8.250 06/01/11 3,243,046
3,000 NRG Energy, Inc. ............................ 7.375 01/15/17 2,895,000
5,119 Ormat Funding Corp. ......................... 8.250 12/30/20 5,170,410
2,945 Reliant Energy, Inc. ........................ 7.875 06/15/17 2,911,869
190 Sierra Pacific Power Co. Ser H............... 6.250 04/15/12 200,082
2,660 Texas Competitive Electric Holdings Co. LLC
(b).......................................... 10.250 11/01/15 2,606,800
4,990 Texas Competitive Electric Holdings Co. LLC
(b).......................................... 10.250 11/01/15 4,890,200
6,210 Williams Cos., Inc. ......................... 7.875 09/01/21 6,799,950
------------
49,473,528
------------
WIRELESS COMMUNICATIONS 1.3%
3,090 American Tower Corp. ........................ 7.125 10/15/12 3,182,700
3,085 American Tower Corp. ........................ 7.500 05/01/12 3,185,263
------------
6,367,963
------------
TOTAL CORPORATE BONDS 91.9%.................................... 453,478,633
------------
COLLATERALIZED MORTGAGE OBLIGATIONS 2.2%
1,608 American Home Mortgage Assets (c)............ 3.435 06/25/47 1,151,936
1,526 American Home Mortgage Assets (c)............ 3.445 10/25/46 1,079,500
1,728 Countrywide Alternative Loan Trust (c)....... 3.393 03/20/47 1,236,662
1,668 Countrywide Alternative Loan Trust (c)....... 3.655 10/25/46 667,200
1,300 Countrywide Alternative Loan Trust (c)....... 3.955 01/25/36 568,137
1,118 Countrywide Alternative Loan Trust (c)....... 4.533 11/20/35 628,409
1,000 Greenpoint Mortgage Funding Trust (c)........ 3.545 09/25/46 669,434
1,375 Harborview Mortgage Loan Trust (c)........... 3.660 08/21/36 687,500
1,772 Harborview Mortgage Loan Trust (c)........... 3.818 01/19/36 1,279,283
2,061 Luminent Mortgage Trust (c).................. 3.495 07/25/36 1,408,221
See Notes to Financial Statements 13
VAN KAMPEN HIGH YIELD FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
-----------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED)
$ 919 Residential Accredit Loans, Inc. (c)......... 3.885% 01/25/46 $ 618,471
1,075 Structured Asset Mortgage Investments, Inc.
(c).......................................... 3.505 08/25/36 766,641
------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS 2.2%................. 10,761,394
------------
FOREIGN GOVERNMENT OBLIGATIONS 0.5%
MXN
24,425 Mexican Fixed Rate Bond (Mexico)............. 9.500 12/18/14 2,529,846
------------
FOREIGN CONVERTIBLE CORPORATE OBLIGATIONS 0.3%
1,493 Nortel Networks Corp. (Canada)............... 4.250 09/01/08 1,483,669
------------
DESCRIPTION
-----------
EQUITIES 0.0%
DecisionOne Corp. (19,895 Common Shares) (h) (i)............................. 0
HF Holdings, Inc. (36,820 Common Stock Warrants, expiring 09/27/09) (h)
(i)........................................................................ 0
Hosiery Corp. of America, Inc., Class A (1,000 Common Shares) (b) (h) (i).... 0
Jazztel, PLC (5,000 Common Stock Warrants, expiring 07/15/10) (EUR) (United
Kingdom) (b) (i)........................................................... 0
OpTel, Inc. (3,275 Common Shares) (b) (h) (i)................................ 0
Park N View, Inc. (4,000 Common Stock Warrants, expiring 05/15/18) (b) (h)
(i)........................................................................ 0
Reunion Industries, Inc. (107,947 Common Stock Warrants, expiring 12/02/08)
(h) (i).................................................................... 0
Ventelo, Inc. (73,021 Common Shares) (EUR) (United Kingdom) (b) (h) (i)...... 0
Viatel Holding Bermuda, Ltd. (7,852 Common Shares) (Bermuda) (i)............. 204
VS Holdings, Inc. (946,962 Common Shares) (h) (i)............................ 0
XO Holdings, Inc. (3,469 Common Shares) (i).................................. 5,724
XO Holdings, Inc. Ser A (6,941 Common Stock Warrants, expiring 01/16/10)
(i)........................................................................ 833
XO Holdings, Inc. Ser B (5,205 Common Stock Warrants, expiring 01/16/10)
(i)........................................................................ 390
XO Holdings, Inc. Ser C (5,205 Common Stock Warrants, expiring 01/16/10)
(i)........................................................................ 234
------------
TOTAL EQUITIES ............................................................. 7,385
------------
TOTAL LONG-TERM INVESTMENTS 94.9%
(Cost $539,844,633)........................................................ 468,260,927
------------
SHORT-TERM INVESTMENTS 2.5%
REPURCHASE AGREEMENTS 1.8%
Banc of America Securities ($3,680,412 par collateralized by U.S. Government
obligations in a pooled cash account, interest rate of 3.16%, dated
02/29/08, to be sold on 03/03/08 at $3,681,381)............................ 3,680,412
14 See Notes to Financial Statements
VAN KAMPEN HIGH YIELD FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
DESCRIPTION VALUE
--------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS (CONTINUED)
Citigroup Global Markets, Inc. ($3,271,477 par collateralized by U.S.
Government obligations in a pooled cash account, interest rate of 3.05%,
dated 02/29/08, to be sold on 03/03/08 at $3,272,309)...................... $ 3,271,477
State Street Bank & Trust Co. ($2,237,111 par collateralized by U.S.
Government obligations in a pooled cash account, interest rate of 2.66%,
dated 02/29/08, to be sold on 03/03/08 at $2,237,607)...................... 2,237,111
------------
TOTAL REPURCHASE AGREEMENTS 1.8%............................................ 9,189,000
------------
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS 0.7%
United States Treasury Bill ($3,300,000 par, yielding 2.985%, 04/10/08
maturity) (j).............................................................. 3,289,847
------------
TOTAL SHORT-TERM INVESTMENTS 2.5%
(Cost $12,478,847)......................................................... 12,478,847
------------
TOTAL INVESTMENTS 97.4%
(Cost $552,323,480)........................................................ 480,739,774
FOREIGN CURRENCY 0.0%
(Cost $9,784).............................................................. 10,149
OTHER ASSETS IN EXCESS OF LIABILITIES 2.6%.................................. 12,768,795
------------
NET ASSETS 100.0%........................................................... $493,518,718
============
Percentages are calculated as a percentage of net assets.
(a) Payment-in-kind security.
(b) 144A-Private Placement security which is exempt from registration under Rule
144A of the Securities Act of 1933, as amended. This security may only be
resold in transactions exempt from registration which are normally those
transactions with qualified institutional buyers.
(c) Floating Rate Coupon
(d) Security is a "step-up" bond where the coupon increases or steps up at a
predetermined date.
(e) Variable Rate Coupon
(f) Non-income producing as security is in default.
(g) This borrower has filed for protection in federal bankruptcy court.
(h) Market value is determined in accordance with procedures established in good
faith by the Board of Directors.
(i) Non-income producing security as this stock currently does not declare
income dividends.
See Notes to Financial Statements 15
VAN KAMPEN HIGH YIELD FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
(j) All or a portion of this security has been physically segregated in
connection with open futures or swap contracts.
Currency Abbreviations:
EUR--Euro
MXN--Mexican peso
SWAP AGREEMENTS OUTSTANDING AS OF FEBRUARY 29, 2008:
CREDIT DEFAULT SWAPS
PAY/
RECEIVE NOTIONAL
REFERENCE BUY/SELL FIXED EXPIRATION AMOUNT UPFRONT
COUNTERPARTY ENTITY PROTECTION RATE DATE (000) PAYMENTS VALUE
Bank of America, N.A. ......... Textron
Financial Corp. Buy 0.800% 03/20/18 $2,295 $ 0 $ 54,771
Bank of America, N.A. ......... Nordstrom, Inc. Buy 1.030 03/20/18 2,000 0 49,361
Bank of America, N.A. ......... Sealed Air Corp. Buy 1.080 03/20/18 885 0 17,691
Bank of America, N.A. ......... Sealed Air Corp. Buy 1.120 03/20/18 1,300 0 21,935
Bank of America, N.A. ......... Toll Brothers,
Inc. Buy 2.250 03/20/18 1,225 0 5,075
Bank of America, N.A. ......... Toll Brothers,
Inc. Buy 2.900 03/20/13 2,455 0 13,133
Citibank, N.A., New York....... Eaton Corp. Buy 0.620 03/20/13 2,250 0 14,737
Citibank, N.A., New York....... Eaton Corp. Buy 0.720 03/20/13 1,800 0 3,484
Citibank, N.A., New York....... Eaton Corp. Buy 0.820 03/20/18 3,745 0 2,749
Credit Suisse International.... Arrow
Electronics,
Inc. Buy 1.000 03/20/15 3,080 0 50,947
Credit Suisse International.... Nordstrom, Inc. Buy 1.040 03/20/13 4,730 0 44,294
Credit Suisse International.... Nordstrom, Inc. Buy 1.050 03/20/13 2,455 0 21,856
Goldman Sachs International.... Goodrich Corp. Buy 0.470 03/20/18 1,370 0 32,292
Goldman Sachs International.... Trane Inc. Buy 0.500 03/20/13 870 0 (2,650)
Goldman Sachs International.... Coca-Cola
Enterprises,
Inc. Buy 0.588 03/20/13 4,920 0 (5,923)
Goldman Sachs International.... Trane, Inc. Buy 0.600 03/20/18 330 0 (1,939)
Goldman Sachs International.... Textron
Financial Corp. Buy 1.050 03/20/13 3,975 0 (1,002)
Goldman Sachs International.... Sealed Air Corp. Buy 1.080 03/20/18 1,710 0 33,824
Goldman Sachs International.... Sealed Air Corp. Buy 1.240 03/20/18 835 0 6,023
Goldman Sachs International.... Avalonbay
Communities,
Inc. Buy 3.050 03/20/13 4,725 0 0
Goldman Sachs International.... Qwest Capital
Funding, Inc. Sell 3.250 12/20/12 840 0 (61,148)
Goldman Sachs International.... Prologis Buy 3.330 03/20/13 2,070 0 0
JP Morgan Chase Bank, N.A. .... Eaton Corp. Buy 0.600 03/20/13 785 0 5,889
JP Morgan Chase Bank, N.A. .... Pepsi Bottling
Group, Inc. Buy 0.630 03/20/13 1,660 0 (8,518)
JP Morgan Chase Bank, N.A. .... Nordstrom, Inc. Buy 1.070 03/20/18 1,535 0 32,594
JP Morgan Chase Bank, N.A. .... Nordstrom, Inc. Buy 1.070 03/20/18 1,535 0 23,222
16 See Notes to Financial Statements
VAN KAMPEN HIGH YIELD FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
PAY/
RECEIVE NOTIONAL
REFERENCE BUY/SELL FIXED EXPIRATION AMOUNT UPFRONT
COUNTERPARTY ENTITY PROTECTION RATE DATE (000) PAYMENTS VALUE
JP Morgan Chase Bank, N.A. .... SLM Corp. Sell 4.950% 03/20/13 $1,380 $ 0 $ (1,858)
Lehman Brothers Special
Financing, Inc. .............. Goodrich Corp. Buy 0.450 03/20/18 1,595 0 40,048
Lehman Brothers Special
Financing, Inc. .............. Goodrich Corp. Buy 0.460 03/20/18 1,145 0 (1,463)
Lehman Brothers Special
Financing, Inc. .............. Arrow
Electronics,
Inc. Buy 1.040 03/20/18 500 0 12,414
Lehman Brothers Special
Financing, Inc. .............. Dow Jones CDX NA
HY 9 Sell 3.750 12/20/12 16,900 (1,087,938) (1,913,154)
Merrill Lynch International.... SLM Corp. Sell 5.000 03/20/13 1,380 0 820
UBS AG......................... Trane, Inc. Buy 0.500 03/20/13 2,695 0 (8,208)
UBS AG......................... Trane, Inc. Buy 0.600 03/20/18 2,830 0 (16,626)
UBS AG......................... Textron
Financial Corp. Buy 1.000 03/20/13 2,300 0 5,663
UBS AG......................... Textron
Financial Corp. Buy 1.010 03/20/13 1,650 0 3,972
UBS AG......................... Textron
Financial Corp. Buy 1.060 03/20/13 3,940 0 (33,566)
UBS AG......................... Martin Marietta
Materials, Inc. Buy 1.730 03/20/18 1,125 0 (3,095)
UBS AG......................... Martin Marietta
Materials, Inc. Buy 1.780 03/20/13 1,125 0 (1,635)
UBS AG......................... Toll Brothers,
Inc. Buy 2.900 03/20/13 3,790 0 12,288
----------- -----------
TOTAL CREDIT DEFAULT SWAPS..................................................................... $(1,087,938) $(1,551,703)
=========== ===========
INTEREST RATE SWAPS
PAY/
FLOATING RECEIVE NOTIONAL
RATE FLOATING FIXED EXPIRATION AMOUNT
COUNTERPARTY INDEX RATE RATE DATE (000) VALUE
Bank of America, N.A. ........ USD LIBOR BBA Pay 5.550% 02/22/18 $31,500 $ 301,455
Bank of America, N.A. ........ USD LIBOR BBA Receive 5.958 02/22/23 41,195 245,522
Deutsche Bank AG New York..... USD LIBOR BBA Pay 5.031 10/25/17 82,200 6,704,900
JP Morgan Chase Bank, N.A. ... USD LIBOR BBA Pay 5.361 08/24/17 13,500 1,283,213
JP Morgan Chase Bank, N.A. ... USD LIBOR BBA Pay 5.428 08/20/17 37,000 3,724,635
-----------
TOTAL INTEREST RATE SWAPS............................................................. $12,259,725
-----------
TOTAL SWAP AGREEMENTS................................................................. $10,708,022
===========
See Notes to Financial Statements 17
VAN KAMPEN HIGH YIELD FUND
PORTFOLIO OF INVESTMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
FUTURES CONTRACTS OUTSTANDING AS OF FEBRUARY 29, 2008:
UNREALIZED
APPRECIATION/
CONTRACTS DEPRECIATION
LONG CONTRACTS:
U.S. Treasury Notes 5-Year Futures, June 2008
(Current Notional Value of $114,250 per contract)......... 133 $ 211,667
U.S. Treasury Notes 2-Year Futures, June 2008
(Current Notional Value of $214,922 per contract)......... 186 270,138
SHORT CONTRACTS:
U.S. Treasury Notes 10-Year Futures, March 2008
(Current Notional Value of $118,688 per contract)......... 139 (394,566)
U.S. Treasury Bonds Futures, March 2008
(Current Notional Value of $119,688 per contract)......... 34 (92,531)
U.S. Treasury Notes 10-Year Futures, June 2008
(Current Notional Value of $117,281 per contract)......... 693 (1,546,360)
U.S. Treasury Bond Futures, June 2008
(Current Notional Value of $118,625 per contract)......... 189 (503,295)
----- -----------
TOTAL FUTURES CONTRACTS..................................... 1,374 $(2,054,947)
===== ===========
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AS OF FEBRUARY 29, 2008:
UNREALIZED
CURRENT APPRECIATION/
IN EXCHANGE FOR VALUE DEPRECIATION
LONG CONTRACTS:
Euro Currency
2,653,000 expiring 04/30/08.................. US$ $ 4,019,483 $ 175,446
SHORT CONTRACTS:
Euro Currency
9,083,000 expiring 04/30/08.................. US$ 13,761,390 (382,131)
-------------
TOTAL FORWARD FOREIGN CURRENCY CONTRACTS....................................... $(206,685)
=============
18 See Notes to Financial Statements
VAN KAMPEN HIGH YIELD FUND
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
February 29, 2008 (Unaudited)
ASSETS:
Total Investments (Cost $552,323,480)....................... $ 480,739,774
Foreign Currency (Cost $9,784).............................. 10,149
Cash........................................................ 283
Receivables:
Investments Sold.......................................... 10,755,296
Interest.................................................. 10,385,520
Fund Shares Sold.......................................... 171,738
Swap Contracts.............................................. 12,768,807
Other....................................................... 281,828
--------------
Total Assets............................................ 515,113,395
--------------
LIABILITIES:
Payables:
Investments Purchased..................................... 6,795,000
Variation Margin on Futures............................... 1,385,564
Fund Shares Repurchased................................... 1,355,381
Income Distributions...................................... 700,933
Distributor and Affiliates................................ 307,351
Investment Advisory Fee................................... 166,023
Swap Collateral............................................. 7,880,000
Swap Contracts.............................................. 2,060,785
Trustees' Deferred Compensation and Retirement Plans........ 392,509
Forward Foreign Currency Contracts.......................... 206,685
Accrued Expenses............................................ 344,446
--------------
Total Liabilities....................................... 21,594,677
--------------
NET ASSETS.................................................. $ 493,518,718
==============
NET ASSETS CONSIST OF:
Capital (Par value of $0.01 per share with an unlimited
number of shares authorized).............................. $1,108,433,537
Accumulated Undistributed Net Investment Income............. (2,569,977)
Net Unrealized Depreciation................................. (62,033,153)
Accumulated Net Realized Loss............................... (550,311,689)
--------------
NET ASSETS.................................................. $ 493,518,718
==============
MAXIMUM OFFERING PRICE PER SHARE:
Class A Shares:
Net asset value and redemption price per share (Based on
net assets of $387,187,682 and 38,461,664 shares of
beneficial interest issued and outstanding)............. $ 10.07
Maximum sales charge (4.75%* of offering price)......... 0.50
--------------
Maximum offering price to public........................ $ 10.57
==============
Class B Shares:
Net asset value and offering price per share (Based on
net assets of $63,533,847 and 6,272,735 shares of
beneficial interest issued and outstanding)............. $ 10.13
==============
Class C Shares:
Net asset value and offering price per share (Based on
net assets of $30,901,932 and 3,094,296 shares of
beneficial interest issued and outstanding)............. $ 9.99
==============
Class I Shares:
Net asset value and offering price per share (Based on
net assets of $11,895,257 and 1,181,243 shares of
beneficial interest issued and outstanding)............. $ 10.07
==============
* On sales of $100,000 or more, the sales charge will be reduced.
See Notes to Financial Statements 19
VAN KAMPEN HIGH YIELD FUND
FINANCIAL STATEMENTS continued
Statement of Operations
For the Six Months Ended February 29, 2008 (Unaudited)
INVESTMENT INCOME:
Interest.................................................... $ 20,936,296
Other....................................................... 386,949
------------
Total Income............................................ 21,323,245
------------
EXPENSES:
Investment Advisory Fee..................................... 1,098,117
Distribution (12b-1) and Service Fees
Class A................................................... 511,080
Class B................................................... 358,561
Class C................................................... 189,693
Transfer Agent Fees......................................... 513,135
Reports to Shareholders..................................... 83,491
Accounting and Administrative Expenses...................... 64,807
Registration Fees........................................... 36,437
Custody..................................................... 32,269
Professional Fees........................................... 26,689
Trustees' Fees and Related Expenses......................... 18,437
Other....................................................... 18,419
------------
Total Expenses.......................................... 2,951,135
Less Credits Earned on Cash Balances.................... 22,434
------------
Net Expenses............................................ 2,928,701
------------
NET INVESTMENT INCOME....................................... $ 18,394,544
============
REALIZED AND UNREALIZED GAIN/LOSS:
Realized Gain/Loss:
Investments............................................... $ 836,902
Swaps..................................................... 196,076
Foreign Currency Transactions............................. (430,257)
Futures................................................... (3,150,127)
------------
Net Realized Loss........................................... (2,547,406)
------------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... (49,253,402)
------------
End of the Period:
Investments............................................. (71,583,706)
Swaps................................................... 11,795,960
Foreign Currency Translation............................ 16,225
Forward Foreign Currency Contracts...................... (206,685)
Futures................................................. (2,054,947)
------------
(62,033,153)
------------
Net Unrealized Depreciation During the Period............... (12,779,751)
------------
NET REALIZED AND UNREALIZED LOSS............................ $(15,327,157)
============
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $ 3,067,387
============
20 See Notes to Financial Statements
VAN KAMPEN HIGH YIELD FUND
FINANCIAL STATEMENTS continued
Statements of Changes in Net Assets (Unaudited)
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 29, 2008 AUGUST 31, 2007
-----------------------------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income..................................... $ 18,394,544 $ 41,708,233
Net Realized Gain/Loss.................................... (2,547,406) 8,037,295
Net Unrealized Depreciation During the Period............. (12,779,751) (12,154,641)
------------- -------------
Change in Net Assets from Operations...................... 3,067,387 37,590,887
------------- -------------
Distributions from Net Investment Income:
Class A Shares.......................................... (14,785,697) (32,205,371)
Class B Shares.......................................... (2,295,895) (6,184,026)
Class C Shares.......................................... (1,237,579) (2,649,680)
Class I Shares.......................................... (320,868) (268,995)
------------- -------------
Total Distributions....................................... (18,640,039) (41,308,072)
------------- -------------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES....... (15,572,652) (3,717,185)
------------- -------------
FROM CAPITAL TRANSACTIONS:
Proceeds from Shares Sold................................. 58,077,985 119,619,493
Net Asset Value of Shares Issued Through Dividend
Reinvestment............................................ 14,302,803 31,009,428
Cost of Shares Repurchased................................ (104,487,462) (224,513,522)
------------- -------------
NET CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS........ (32,106,674) (73,884,601)
------------- -------------
TOTAL DECREASE IN NET ASSETS.............................. (47,679,326) (77,601,786)
NET ASSETS:
Beginning of the Period................................... 541,198,044 618,799,830
------------- -------------
End of the Period (Including accumulated undistributed net
investment income of $(2,569,977) and $(2,234,482),
respectively)........................................... $ 493,518,718 $ 541,198,044
============= =============
See Notes to Financial Statements 21
VAN KAMPEN HIGH YIELD FUND
FINANCIAL HIGHLIGHTS (UNAUDITED)
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE SHARE OF THE FUND
OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
ALL SHARE AMOUNTS AND NET ASSET VALUES HAVE BEEN ADJUSTED AS A RESULT OF THE
1-FOR-3 REVERSE SHARE SPLIT ON SEPTEMBER 5, 2006.
SIX
MONTHS
ENDED YEAR ENDED AUGUST 31,
CLASS A SHARES FEB. 29, ----------------------------------------------
2008 2007 2006 2005 2004 2003
----------------------------------------------------------
NET ASSET VALUE, BEGINNING OF THE
PERIOD............................ $10.38 $10.47 $10.89 $10.92 $10.29 $ 9.45
------ ------ ------ ------ ------ ------
Net Investment Income............. 0.37(a) 0.75(a) 0.75(a) 0.78 0.78 0.87
Net Realized and Unrealized
Gain/Loss....................... (0.31) (0.10) (0.39) (0.06) 0.63 0.87
------ ------ ------ ------ ------ ------
Total from Investment Operations.... 0.06 0.65 0.36 0.72 1.41 1.74
------ ------ ------ ------ ------ ------
Less:
Distributions from Net Investment
Income.......................... 0.37 0.74 0.78 0.75 0.75 0.72
Return of Capital Distributions... -0- -0- -0- -0- 0.03 0.18
------ ------ ------ ------ ------ ------
Total Distributions................. 0.37 0.74 0.78 0.75 0.78 0.90
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF THE
PERIOD............................ $10.07 $10.38 $10.47 $10.89 $10.92 $10.29
====== ====== ====== ====== ====== ======
Total Return (b).................... 0.54%* 6.23% 3.55% 6.89% 14.02% 19.26%
Net Assets at End of the Period (In
millions)......................... $387.2 $425.4 $457.7 $532.0 $379.5 $408.7
Ratio of Expenses to Average Net
Assets (c)........................ 0.96% 0.92% 0.92% 1.06% 1.06% 1.12%
Ratio of Net Investment Income to
Average Net Assets................ 7.11% 7.05% 7.04% 7.11% 7.45% 8.36%
Portfolio Turnover.................. 15%* 42% 44% 84% 88% 95%
* Non-Annualized
(a) Based on average shares outstanding.
(b) Assumes reinvestment of all distributions for the period and does not
include payment of the maximum sales charge of 4.75% or contingent deferred
sales charge (CDSC). On purchases of $1 million or more, a CDSC of 1% may be
imposed on certain redemptions made within eighteen months of purchase. If
the sales charges were included, total returns would be lower. These returns
include combined Rule 12b-1 fees and service fees of up to .25% and do not
reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption of Fund shares.
(c) The Ratio of Expenses to Average Net Assets does not reflect credits earned
on cash balances. If these credits were reflected as a reduction of
expenses, the ratio would decrease by .01% for the years ended August 31,
2007 and 2006.
22 See Notes to Financial Statements
VAN KAMPEN HIGH YIELD FUND
FINANCIAL HIGHLIGHTS (UNAUDITED) continued
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE SHARE OF THE FUND
OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
ALL SHARE AMOUNTS AND NET ASSET VALUES HAVE BEEN ADJUSTED AS A RESULT OF THE
1-FOR-3 REVERSE SHARE SPLIT ON SEPTEMBER 5, 2006.
SIX
MONTHS
ENDED YEAR ENDED AUGUST 31,
CLASS B SHARES FEB. 29, ----------------------------------------------
2008 2007 2006 2005 2004 2003
----------------------------------------------------------
NET ASSET VALUE, BEGINNING OF THE
PERIOD............................ $10.44 $10.53 $10.95 $10.95 $10.32 $ 9.48
------ ------ ------ ------ ------ ------
Net Investment Income............. 0.33(a) 0.68(a) 0.66(a) 0.75 0.69 0.75
Net Realized and Unrealized Gain/
Loss............................ (0.31) (0.11) (0.39) (0.06) 0.63 0.90
------ ------ ------ ------ ------ ------
Total from Investment Operations.... 0.02 0.57 0.27 0.69 1.32 1.65
------ ------ ------ ------ ------ ------
Less:
Distributions from Net Investment
Income.......................... 0.33 0.66 0.69 0.69 0.66 0.63
Return of Capital Distributions... -0- -0- -0- -0- 0.03 0.18
------ ------ ------ ------ ------ ------
Total Distributions................. 0.33 0.66 0.69 0.69 0.69 0.81
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF THE
PERIOD............................ $10.13 $10.44 $10.53 $10.95 $10.95 $10.32
====== ====== ====== ====== ====== ======
Total Return (b).................... 0.17%* 5.41% 2.75% 6.36% 12.79% 18.27%
Net Assets at End of the Period (In
millions)......................... $ 63.5 $ 77.6 $115.8 $191.0 $160.7 $175.6
Ratio of Expenses to Average Net
Assets (c)........................ 1.72% 1.68% 1.68% 1.83% 1.82% 1.89%
Ratio of Net Investment Income to
Average Net Assets................ 6.35% 6.32% 6.28% 6.33% 6.70% 7.68%
Portfolio Turnover.................. 15%* 42% 44% 84% 88% 95%
* Non-Annualized
(a) Based on average shares outstanding.
(b) Assumes reinvestment of all distributions for the period to and does not
include payment of the maximum CDSC of 4%, charged on certain redemptions
made within the first and second year of purchase and declining 0% after the
fifth year. If the sales charge was included, total returns would be lower.
These returns include combined Rule 12b-1 fees and service fees of up to 1%
and do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or the redemption of Fund shares.
(c) The Ratio of Expenses to Average Net Assets does not reflect credits earned
on cash balances. If these credits were reflected as a reduction of
expenses, the ratio would decrease by .01% for the years ended August 31,
2007 and 2006.
See Notes to Financial Statements 23
VAN KAMPEN HIGH YIELD FUND
FINANCIAL HIGHLIGHTS (UNAUDITED) continued
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE SHARE OF THE FUND
OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
ALL SHARE AMOUNTS AND NET ASSET VALUES HAVE BEEN ADJUSTED AS A RESULT OF THE
1-FOR-3 REVERSE SHARE SPLIT ON SEPTEMBER 5, 2006.
SIX
MONTHS
ENDED YEAR ENDED AUGUST 31,
CLASS C SHARES FEB. 29, ------------------------------------------------------
2008 2007 2006 2005 2004 2003
--------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF
THE PERIOD.................... $10.30 $10.38 $10.80 $10.83 $10.23 $ 9.39
------ ------ ------ ------ ------ ------
Net Investment Income......... 0.32(a) 0.66(a) 0.66(a) 0.75 0.69 0.75
Net Realized and Unrealized
Gain/Loss................... (0.30) (0.08) (0.36) (0.09) 0.60 0.90
------ ------ ------ ------ ------ ------
Total from Investment
Operations.................... 0.02 0.58 0.30 0.66 1.29 1.65
------ ------ ------ ------ ------ ------
Less:
Distributions from Net
Investment Income........... 0.33 0.66 0.72 0.69 0.66 0.63
Return of Capital
Distributions............... -0- -0- -0- -0- 0.03 0.18
------ ------ ------ ------ ------ ------
Total Distributions............. 0.33 0.66 0.72 0.69 0.69 0.81
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF THE
PERIOD........................ $ 9.99 $10.30 $10.38 $10.80 $10.83 $10.23
====== ====== ====== ====== ====== ======
Total Return (b)................ 0.17%* 5.59% 2.83%(d) 6.17%(d) 12.98%(d) 18.14%(e)
Net Assets at End of the Period
(In millions)................. $ 30.9 $ 32.1 $ 43.6 $ 54.5 $ 41.4 $ 41.5
Ratio of Expenses to Average Net
Assets (c).................... 1.72% 1.68% 1.64%(d) 1.82%(d) 1.81%(d) 1.86%
Ratio of Net Investment Income
to Average Net Assets......... 6.37% 6.26% 6.32%(d) 6.34%(d) 6.71%(d) 7.68%(e)
Portfolio Turnover.............. 15%* 42% 44% 84% 88% 95%
* Non-Annualized
(a) Based on average shares outstanding.
(b) Assumes reinvestment of all distributions for the period and does not
include payment of the maximum CDSC of 1% charged on certain redemptions
made within one year of purchase. If the sales charge was included, total
returns would be lower. These returns include combined Rule 12b-1 fees and
service fees of up to 1% and do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund
shares.
(c) The Ratio of Expenses to Average Net Assets does not reflect credits earned
on cash balances. If these credits were reflected as a reduction of
expenses, the ratio would decrease by .01% for the years ended August 31,
2007 and 2006.
(d) The Total Return, Ratio of Expenses to Average Net Assets and Ratio of Net
Investment Income to Average Net Assets reflect actual 12b-1 fees of less
than 1% (See footnote 7).
(e) Certain non-recurring payments were made to Class C Shares, resulting in an
increase to the Total Return and Ratio of Net Investment Income to Average
Net Assets of .01%.
24 See Notes to Financial Statements
VAN KAMPEN HIGH YIELD FUND
FINANCIAL HIGHLIGHTS (UNAUDITED) continued
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE SHARE OF THE FUND
OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
ALL SHARE AMOUNTS AND NET ASSET VALUES HAVE BEEN ADJUSTED AS A RESULT OF THE
1-FOR-3 REVERSE SHARE SPLIT ON SEPTEMBER 5, 2006.
SIX MONTHS YEAR ENDED MARCH 23, 2005
ENDED AUGUST 31, (COMMENCEMENT OF
CLASS I SHARES FEBRUARY 29, ---------------- OPERATIONS) TO
2008 2007 2006 AUGUST 31, 2005
---------------------------------------------------------
NET ASSET VALUE, BEGINNING OF THE
PERIOD............................. $10.38 $10.47 $10.89 $10.95
------ ------ ------ ------
Net Investment Income.............. 0.38(a) 0.71(a) 0.78(a) 0.36
Net Realized and Unrealized
Gain/Loss........................ (0.31) (0.04) (0.39) (0.06)
------ ------ ------ ------
Total from Investment Operations..... 0.07 0.67 0.39 0.30
Less Distributions from Net
Investment Income.................. 0.38 0.76 0.81 0.36
------ ------ ------ ------
NET ASSET VALUE, END OF THE PERIOD... $10.07 $10.38 $10.47 $10.89
====== ====== ====== ======
Total Return (b)..................... 0.67%* 6.49% 3.82% 2.69%*
Net Assets at End of the Period (In
millions).......................... $ 11.9 $ 6.0 $ 1.7 $ 23.3
Ratio of Expenses to Average Net
Assets (c)......................... 0.73% 0.67% 0.63% 0.85%
Ratio of Net Investment Income to
Average Net Assets................. 7.44% 6.72% 7.37% 6.97%
Portfolio Turnover................... 15%* 42% 44% 84%
* Non-Annualized
(a) Based on average shares outstanding.
(b) Assumes reinvestment of all distributions for the period. These returns do
not reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption of Fund shares.
(c) The Ratio of Expenses to Average Net Assets does not reflect credits earned
on cash balances. If these credits were reflected as a reduction of expense,
the ratio would decrease by .01% for the years ended August 31, 2007 and
2006.
See Notes to Financial Statements 25
VAN KAMPEN HIGH YIELD FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 29, 2008 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen High Yield Fund (the "Fund") is organized as a series of Van Kampen
High Yield, a Delaware statutory trust, and is registered as a diversified,
open-end management investment company under the Investment Company Act of 1940
(the "1940 Act"), as amended. The Fund's primary investment objective is to seek
to maximize current income. Capital appreciation is a secondary objective which
is sought only when consistent with the Fund's primary investment objective. The
fund commenced investment operations on October 2, 1978. The Fund offers Class A
Shares, Class B Shares, Class C Shares and Class I Shares. Each class of shares
differs by its initial sales load, contingent deferred sales charges, the
allocation of class-specific expenses and voting rights on matters affecting a
single class. On September 5, 2006, there was a 1-for-3 reverse share split for
Class A Shares, Class B Shares, Class C Shares and Class I Shares.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
preparation of financial statements in conformity with U.S. generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
A. SECURITY VALUATION Fixed income investments and preferred stocks are stated
at value using market quotations or indications of value obtained from an
independent pricing service. Investments in securities listed on a securities
exchange are valued at their last sale price or the latest bid price (in the
case of a foreign securities exchange) as of the close of such securities
exchange. Equity securities traded on NASDAQ are valued at the NASDAQ Official
Closing Price. Unlisted securities and listed securities for which the last
sales price is not available are valued at the mean of the last reported bid and
asked prices. For those securities where quotations or prices are not readily
available, valuations are determined in accordance with procedures established
in good faith by the Board of Trustees. Forward foreign currency contracts are
valued using quoted foreign exchange rates. Swaps are valued using market
quotations obtained from brokers. 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
Fund may purchase and sell securities on a "when issued" or "delayed delivery"
basis, with settlement to occur at a later date. The value of the security so
purchased is subject to market fluctuations during this period. The Fund will
segregate assets with the custodian having an aggregate value at least equal to
the amount of the when-issued or delayed delivery purchase commitments until
payment is made. At February 29, 2008, there were no when-issued or delayed
delivery purchase commitments.
The Fund may invest in repurchase agreements, which are short-term
investments in which the Fund acquires ownership of a debt security and the
seller agrees to repurchase the security at a future time and specified price.
The Fund may invest independently in
26
VAN KAMPEN HIGH YIELD FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
repurchase agreements, or transfer uninvested cash balances into a pooled cash
account along with other investment companies advised by Van Kampen Asset
Management (the "Adviser") or its affiliates, the daily aggregate of which is
invested in repurchase agreements. Repurchase agreements are fully
collateralized by the underlying debt security. The Fund will make payment for
such securities only upon physical delivery or evidence of book entry transfer
to the account of the custodian bank. The seller is required to maintain the
value of the underlying security at not less than the repurchase proceeds due
the Fund.
C. INCOME AND EXPENSES Interest income is recorded on an accrual basis and
dividend income is recorded on the ex-dividend date. Discounts on debt
securities are accreted and premiums are amortized over the expected life of
each applicable security. Other income is comprised primarily of consent fees.
Consent fees are earned as compensation for agreeing to changes in terms of debt
instruments. Income and expenses of the Fund are allocated on a pro rata basis
to each class of shares, except for distribution and service fees and
incremental transfer agency costs which are unique to each class of shares.
D. FEDERAL INCOME TAXES It is the Fund's policy to comply with the requirements
of Subchapter M of the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all of its taxable income to its
shareholders. Therefore, no provision for federal income taxes is required. The
Fund adopted the provisions of the Financial Accounting Standards Board ("FASB")
Interpretation No. 48 ("FIN 48") Accounting for Uncertainty in Income Taxes on
February 29, 2008. FIN 48 sets forth a minimum threshold for financial statement
recognition of the benefit of a tax position taken or expected to be taken in a
tax return. The implementation of FIN 48 did not result in any unrecognized tax
benefits in the accompanying financial statements. If applicable, the Fund
recognizes interest accrued related to unrecognized tax benefits in "Interest
Expense" and penalties in "Other" expenses on the Statement of Operations. The
Fund files tax returns with the U.S. Internal Revenue Service, New York and
various states. Generally, each of the tax years in the four year period ended
August 31, 2007, remains subject to examination by taxing authorities.
The Fund intends to utilize provisions of federal income tax laws which
allow it to carry a realized capital loss forward for eight years following the
year of the loss and offset such losses against any future realized capital
gains. During the prior fiscal year, the fund utilized capital losses carried
forward of $3,828,604. At August 31, 2007, the Fund had an accumulated capital
loss carryforward for tax purposes of $544,778,026 which will expire according
to the following schedule:
AMOUNT EXPIRATION
$ 33,682,013................................................ August 31, 2008
51,935,293................................................ August 31, 2009
138,518,165................................................ August 31, 2010
165,406,856................................................ August 31, 2011
117,018,188................................................ August 31, 2012
32,804,299................................................ August 31, 2013
5,413,212................................................ August 31, 2014
27
VAN KAMPEN HIGH YIELD FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
At February 29, 2008, the cost and related gross unrealized appreciation and
depreciation were as follows:
Cost of investments for tax purposes........................ $554,382,987
============
Gross tax unrealized appreciation........................... $ 6,383,698
Gross tax unrealized depreciation........................... (80,026,911)
------------
Net tax unrealized depreciation on investments.............. $(73,643,213)
============
E. DISTRIBUTION OF INCOME AND GAINS The Fund declares daily and pays monthly
dividends from net investment income. Net realized gains, if any, are
distributed at least annually. Distributions from net realized gains for book
purposes may include short-term capital gains which are included as ordinary
income for tax purposes.
The tax character of distributions paid during the year ended August 31,
2007 was as follows:
Distributions paid from:
Ordinary income........................................... $41,566,393
Long-term capital gain.................................... -0-
-----------
$41,566,393
===========
As of August 31, 2007, the components of distributable earnings on a tax
basis were as follows:
Undistributed ordinary income............................... $1,880,139
Undistributed long-term capital gain........................ -0-
Net realized gains or losses may differ for financial reporting and tax
purposes primarily as a result of the deferral of losses relating to wash sales
transactions.
F. CREDITS EARNED ON CASH BALANCES During the six months ended February 29,
2008, the Fund's custody fee was reduced by $22,434 as a result of credits
earned on cash balances.
G. FOREIGN CURRENCY TRANSLATION Assets and liabilities denominated in foreign
currencies and commitments under forward foreign currency contracts are
translated into U.S. dollars at the mean of the quoted bid and asked prices of
such currencies against the U.S. dollar. Purchases and sales of portfolio
securities are translated at the rate of exchange prevailing when such
securities were acquired or sold. Realized gain and loss on foreign currency
transactions on the Statement of Operations includes the net realized amount
from the sale of foreign currency, the amount realized between trade date and
settlement date on securities transactions and the foreign currency portion of
gains and losses on the sale of securities. Income and expenses are translated
at rates prevailing when accrued.
28
VAN KAMPEN HIGH YIELD FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of the Fund's Investment Advisory Agreement, the Adviser will
provide investment advice and facilities to the Fund for an annual fee payable
monthly as follows:
AVERAGE DAILY NET ASSETS % PER ANNUM
First $500 million.......................................... .420%
Next $250 million........................................... .345%
Next $250 million........................................... .295%
Next $1 billion............................................. .270%
Next $1 billion............................................. .245%
Over $3 billion............................................. .220%
For the six months ended February 29, 2008, the Fund recognized expenses of
approximately $3,700 representing legal services provided by Skadden, Arps,
Slate, Meagher & Flom LLP, of which a trustee of the Fund is a partner of such
firm and he and his law firm provide legal services as legal counsel to the
Fund.
Under separate Accounting Services and Chief Compliance Officer (CCO)
Employment agreements, the Adviser provides accounting services and the CCO
provides compliance services to the Fund. The costs of these services are
allocated to each fund. For the six months ended February 29, 2008, the Fund
recognized expenses of approximately $24,400 representing Van Kampen Investments
Inc.'s or its affiliates' (collectively "Van Kampen") cost of providing
accounting services to the Fund, as well as the salary, benefits and related
costs of the CCO and related support staff paid by Van Kampen. Services provided
pursuant to the Accounting Services and CCO Employment agreement are reported as
part of "Accounting and Administrative Expenses" on the Statement of Operations.
Van Kampen Investor Services Inc. (VKIS), an affiliate of the Adviser,
serves as the shareholder servicing agent for the Fund. For the six months ended
February 29, 2008, the Fund recognized expenses of approximately $404,200
representing transfer agency fees paid to VKIS. Transfer agency fees are
determined through negotiations with the Fund's Board of Trustees.
Certain officers and trustees of the Fund are also officers and directors of
Van Kampen. The Fund does not compensate its officers or trustees who are also
officers of Van Kampen.
The Fund provides deferred compensation and retirement plans for its
trustees who are not officers of Van Kampen. Under the deferred compensation
plan, trustees may elect to defer all or a portion of their compensation.
Amounts deferred are retained by the Fund, and to the extent permitted by the
1940 Act, as amended, may be invested in the common shares of those funds
selected by the trustees. Investments in such funds of $269,939 are included in
"Other" assets on the Statement of Assets and Liabilities at February 29, 2008.
Appreciation/depreciation and distributions received from these investments are
recorded with an offsetting increase/decrease in the deferred compensation
obligation and do not affect the net asset value of the Fund. Benefits under the
retirement plan are payable upon retirement for a ten-year period and are based
upon each trustee's years of service to the Fund. The maximum annual benefit per
trustee under the plan is $2,500.
For the six months ended February 29, 2008, Van Kampen, as Distributor for
the Fund, received net commissions on sales of the Fund's Class A Shares of
approximately $26,300 and contingent deferred sales charge (CDSC) on redeemed
shares of approximately $49,000. Sales charges do not represent expenses to the
Fund.
29
VAN KAMPEN HIGH YIELD FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
3. CAPITAL TRANSACTIONS
For the six months ended February 29, 2008 and the year ended August 31, 2007,
transactions were as follows:
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 29, 2008 AUGUST 31, 2007
---------------------------- -------------------------------
SHARES VALUE SHARES VALUE
Sales:
Class A..................... 3,377,121 $ 35,042,247 8,065,381 $ 85,272,316
Class B..................... 395,424 4,138,094 1,354,417 14,457,571
Class C..................... 1,205,787 12,443,983 1,409,386 14,780,209
Class I..................... 625,290 6,453,661 479,189 5,109,397
----------- ------------- -------------- -------------
Total Sales................... 5,603,622 $ 58,077,985 11,308,373 $ 119,619,493
=========== ============= ============== =============
Dividend Reinvestment:
Class A..................... 1,112,456 $ 11,510,705 2,301,212 $ 24,424,026
Class B..................... 171,030 1,780,562 423,585 4,522,334
Class C..................... 90,955 934,543 183,309 1,935,553
Class I..................... 7,466 76,993 12,003 127,515
----------- ------------- -------------- -------------
Total Dividend Reinvestment... 1,381,907 $ 14,302,803 2,920,109 $ 31,009,428
=========== ============= ============== =============
Repurchases:
Class A..................... (7,015,585) $ (72,720,809) (100,686,829)* $(138,653,149)
Class B..................... (1,732,236) (18,023,031) (27,361,106)* (57,032,500)
Class C..................... (1,323,837) (13,398,602) (11,073,294)* (28,095,426)
Class I..................... (33,810) (345,020) (388,939)* (732,447)
----------- ------------- -------------- -------------
Total Repurchases............. (10,105,468) $(104,487,462) (139,510,168) $(224,513,522)
=========== ============= ============== =============
* Includes 87,378,893, 21,991,341, 8,405,187, and 319,870 shares redeemed in
1-for-3 reverse share split for Class A Shares, Class B Shares, Class C
Shares and Class I Shares, respectively.
4. REDEMPTION FEE
The Fund will assess a 2% redemption fee on the proceeds of Fund shares that are
redeemed (either by sale or exchange) within 30 days of purchase. The redemption
fee is paid directly to the Fund and allocated on a pro rata basis to each class
of shares. For the six months ended February 29, 2008, the Fund received
redemption fees of approximately $12,600 which are reported as part of "Cost of
Shares Repurchased" on the Statement of Changes in Net Assets. The per share
impact from redemption fees paid to the Fund was less than $0.01.
5. INVESTMENT TRANSACTIONS
During the period, the cost of purchases and proceeds from sales of investments,
excluding short-term investments, were $77,339,942 and $115,376,207,
respectively.
6. 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.
30
VAN KAMPEN HIGH YIELD FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
The fund may use derivative instruments, to earn income, to facilitate
portfolio management and to mitigate risks. All of the Fund's holdings,
including derivative instruments, are marked to market each day with the change
in value reflected in unrealized appreciation/depreciation. Upon disposition, a
realized gain or loss is recognized accordingly, except when taking delivery of
a security underlying a forward commitment. In this instance, the recognition of
gain or loss is postponed until the disposal of the security underlying the
forward commitment.
Purchasing securities or foreign currency on a forward commitment basis
involves a risk that the market value at the time of delivery may be lower than
the agreed upon purchase price resulting in an unrealized loss. Selling
securities or foreign currency on a forward commitment basis involves different
risks and can result in losses more significant than those arising from the
purchase of such securities. Risks may arise as a result of the potential
inability of the counterparties to meet the terms of their contracts.
Summarized below are the specific types of derivative financial instruments
used by the Fund.
A. FORWARD FOREIGN CURRENCY CONTRACTS A forward foreign currency contract is a
commitment to purchase or sell a foreign currency at a future date at a
negotiated forward rate. Upon the settlement of the contract, a realized gain or
loss is recognized and is included as a component of realized gain/loss on
forward foreign currency contracts. Risks may arise from the unanticipated
movements in the value of a foreign currency relative to the U.S. dollar.
B. FUTURES CONTRACTS A futures contract is an agreement involving the delivery
of a particular asset on a specified future date at an agreed upon price. The
Fund generally invests in exchange traded futures contracts on U.S. Treasury
securities for duration and risk management purposes and typically closes the
contract prior to the delivery date. Upon entering into futures contracts, the
Fund maintains an amount of cash or liquid securities with a value equal to a
percentage of the contract amount with either a futures commission merchant
pursuant to rules and regulations promulgated under the 1940 Act, as amended, or
with its custodian in an account in the broker's name. This amount is known as
initial margin. During the period the futures contract is open, payments are
received from or made to the broker based upon changes in the value of the
contract (the variation margin). The risk of loss associated with a futures
contract is in excess of the variation margin reflected on the Statement of
Assets and Liabilities.
Transactions in futures contracts for the six months ended February 29, 2008
were as follows:
CONTRACTS
Outstanding at August 31, 2007.............................. 918
Futures Opened.............................................. 4,393
Futures Closed.............................................. (3,937)
------
Outstanding at February 29, 2008............................ 1,374
======
C. SWAP CONTRACTS The Fund may enter into credit default swap contracts for
hedging purposes or to gain exposure to a credit in which the Fund may otherwise
invest. A credit
31
VAN KAMPEN HIGH YIELD FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
default swap is an agreement between two parties to exchange the credit risk of
an issuer. A buyer of a credit default swap is said to buy protection by paying
periodic fees in return for a contingent payment from the seller if the issuer
has a credit event such as bankruptcy, a failure to pay outstanding obligations
or deteriorating credit while the swap is outstanding. A seller of a credit
default swap is said to sell protection and thus collects the periodic fees and
profits if the credit of the issuer remains stable or improves while the swap is
outstanding but the seller in a credit default swap contract would be required
to pay an agreed-upon amount, which approximates the notional amount of the swap
as disclosed in the table following the Portfolio of Investments, to the buyer
in the event of an adverse credit event of the issuer. The Fund accrues for the
periodic fees on credit default swaps on a daily basis with the net amount
accrued recorded within unrealized appreciation/depreciation of swap contracts.
Upon cash settlement of the periodic fees, the net amount is recorded as
realized gain/loss on swap contracts on the Statements of Operations. Net
unrealized gains are recorded as an asset or net unrealized losses are reported
as a liability on the Statement of Assets and Liabilities. The change in value
of the swap contracts is reported as unrealized gains or losses on the Statement
of Operations. Payments received or made upon entering into a credit default
swap contract, if any, are recorded as realized gain or loss on the Statement of
Operations upon termination or maturity of the swap. Credit default swaps may
involve greater risks than if a Fund had invested in the issuer directly. Credit
default swaps are subject to general market risk, counterparty risk and credit
risk.
The Fund may also enter into interest rate swaps primarily to preserve a
return or spread on a particular investment or portion of its portfolio, as a
duration management technique or to protect against any increase in the price of
securities the Fund anticipates purchasing at a later date. Interest rate swaps
are contractual agreements to exchange periodic interest payment streams
calculated on a predetermined notional principal amount. Interest rate swaps
generally involve one party paying a fixed interest rate and the other party
paying a variable rate. The Fund will usually enter into interest rate swaps on
a net basis, i.e., the two payment streams are netted out in a cash settlement
on the payment date or dates specified in the instrument, with the Fund
receiving or paying, as the case may be, only the net amount of the two
payments. The Fund accrues the net amount with respect to each interest rate
swap on a daily basis. This net amount is recorded within unrealized
appreciation/depreciation on swap contracts. Upon cash settlement of the
periodic payments, the net amount is recorded as realized gain/loss on swap
contracts on the Statement of Operations. Risks may arise as a result of the
potential inability of the counterparties to meet the terms of their contracts.
If there is a default by the counterparty to a swap agreement, the Fund will
have contractual remedies pursuant to the agreements related to the transaction.
Counterparties are required to pledge collateral daily (based on the valuation
of each swap) on behalf of the Fund with a value approximately equal to the
amount of any unrealized gain. Cash collateral, when received by the Fund, is
recorded with an offsetting liability shown on the Statement of Assets and
Liabilities. Reciprocally, when the Fund has an unrealized loss on a swap
contract, the Fund has instructed the custodian to pledge cash or liquid
securities as collateral with a value approximately equal to the amount of the
unrealized loss. Collateral pledges are monitored and subsequently adjusted if
and when the swap valuations fluctuate. Restricted cash, if any, for segregating
purposes is shown on the Statement of Assets and Liabilities.
32
VAN KAMPEN HIGH YIELD FUND
NOTES TO FINANCIAL STATEMENTS -- FEBRUARY 29, 2008 (UNAUDITED) continued
7. DISTRIBUTION AND SERVICE PLANS
Shares of the Fund are distributed by Van Kampen Funds Inc. (the "Distributor"),
an affiliate of the Adviser. The Fund has adopted a distribution plan pursuant
to Rule 12b-1 under the 1940 act, as amended, and a service plan (collectively,
the "Plans") for Class A Shares, Class B Shares and Class C Shares to compensate
the Distributor for the sale, distribution, shareholder servicing and
maintenance of shareholder accounts for these shares. Under the Plans, the Fund
will incur annual fees of up to .25% of Class A average daily net assets and up
to 1.00% each of Class B and Class C average daily net assets. These fees are
accrued daily and paid to the Distributor monthly.
The amount of distribution expenses incurred by the Distributor and not yet
reimbursed ("unreimbursed receivable") was approximately $1,121,500 and $9,900
for Class B and Class C Shares, respectively. These amounts may be recovered for
future payments under the distribution plan or CDSC. To the extent the
unreimbursed receivable has been fully recovered, the distribution fee is
reduced.
8. INDEMNIFICATIONS
The Fund enters into contracts that contain a variety of indemnifications. The
Fund's maximum exposure under these arrangements is unknown. However, the Fund
has not had prior claims or losses pursuant to these contracts and expects the
risk of loss to be remote.
9. ACCOUNTING PRONOUNCEMENT
In September 2006, Statement of Financial Accounting Standards No. 157, Fair
Value Measurements (SFAS 157), was issued and is effective for fiscal years
beginning after November 15, 2007. SFAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. As of February 29, 2008, the Adviser does not believe the adoption
of SFAS 157 will impact the amounts reported in the financial statements,
however, additional disclosures will be required about the inputs used to
develop the measurements of fair value and the effect of certain measurements
reported on the statements of operations for the fiscal period.
33
VAN KAMPEN HIGH YIELD FUND
BOARD OF TRUSTEES, OFFICERS AND IMPORTANT ADDRESSES
BOARD OF TRUSTEES
DAVID C. ARCH
JERRY D. CHOATE
ROD DAMMEYER
LINDA HUTTON HEAGY
R. CRAIG KENNEDY
HOWARD J KERR
JACK E. NELSON
HUGO F. SONNENSCHEIN
WAYNE W. WHALEN* - Chairman
SUZANNE H. WOOLSEY
OFFICERS
RONALD E. ROBISON
President and Principal Executive Officer
DENNIS SHEA
Vice President
J. DAVID GERMANY
Vice President
AMY R. DOBERMAN
Vice President
STEFANIE V. CHANG
Vice President and Secretary
JOHN L. SULLIVAN
Chief Compliance Officer
STUART N. SCHULDT
Chief Financial Officer and Treasurer
INVESTMENT ADVISER
VAN KAMPEN ASSET MANAGEMENT
522 Fifth Avenue
New York, New York 10036
DISTRIBUTOR
VAN KAMPEN FUNDS INC.
522 Fifth Avenue
New York, New York 10036
SHAREHOLDER SERVICING AGENT
VAN KAMPEN INVESTOR SERVICES INC.
P.O. Box 219286
Kansas City, Missouri 64121-9286
CUSTODIAN
STATE STREET BANK
AND TRUST COMPANY
One Lincoln Street
Boston, Massachusetts 02111
LEGAL COUNSEL
SKADDEN, ARPS, SLATE,
MEAGHER & FLOM LLP
333 West Wacker Drive
Chicago, Illinois 60606
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
ERNST & YOUNG LLP
233 South Wacker Drive
Chicago, Illinois 60606
* "Interested persons" of the Fund, as defined in the Investment Company Act
of 1940, as amended.
34
Van Kampen High Yield Fund
An Important Notice Concerning Our U.S. Privacy Policy
We are required by federal law to provide you with a copy of our Privacy
Policy annually.
The following Policy applies to current and former individual clients of Van
Kampen Investments Inc., Van Kampen Asset Management, Van Kampen Advisors
Inc., Van Kampen Funds Inc., Van Kampen Investor Services Inc. and Van
Kampen Exchange Corp., as well as current and former individual investors in
Van Kampen mutual funds, unit investment trusts, and related companies.
This Policy is not applicable to partnerships, corporations, trusts or other
non-individual clients or account holders, nor is this Policy applicable to
individuals who are either beneficiaries of a trust for which we serve as
trustee or participants in an employee benefit plan administered or advised
by us. This Policy is, however, applicable to individuals who select us to
be a custodian of securities or assets in individual retirement accounts,
401(k) accounts, 529 Educational Savings Accounts, accounts subject to the
Uniform Gifts to Minors Act, or similar accounts.
Please note that we may amend this Policy at any time, and will inform you
of any changes to this Policy as required by law.
WE RESPECT YOUR PRIVACY
We appreciate that you have provided us with your personal financial
information. We strive to maintain the privacy of such information while we
help you achieve your financial objectives. This Policy describes what
non-public personal information we collect about you, why we collect it, and
when we may share it with others.
We hope this Policy will help you understand how we collect and share
non-public personal information that we gather about you. Throughout this
Policy, we refer to the non-public information that personally identifies
you or your accounts as "personal information."
1. WHAT PERSONAL INFORMATION DO WE COLLECT ABOUT YOU?
To serve you better and manage our business, it is important that we collect
and maintain accurate information about you. We may obtain this information
from applications and other forms you submit to us, from your dealings with
us, from consumer reporting agencies, from our Web sites and from third
parties and other sources.
(continued on next page)
Van Kampen High Yield Fund
An Important Notice Concerning Our U.S. Privacy Policy continued
For example:
-- We may collect information such as your name, address, e-mail address,
telephone/fax numbers, assets, income and investment objectives through
applications and other forms you submit to us.
-- We may obtain information about account balances, your use of
account(s) and the types of products and services you prefer to receive
from us through your dealings and transactions with us and other
sources.
-- We may obtain information about your creditworthiness and credit
history from consumer reporting agencies.
-- We may collect background information from and through third-party
vendors to verify representations you have made and to comply with
various regulatory requirements.
-- If you interact with us through our public and private Web sites, we
may collect information that you provide directly through online
communications (such as an e-mail address). We may also collect
information about your Internet service provider, your domain name,
your computer's operating system and Web browser, your use of our Web
sites and your product and service preferences, through the use of
"cookies." "Cookies" recognize your computer each time you return to
one of our sites, and help to improve our sites' content and
personalize your experience on our sites by, for example, suggesting
offerings that may interest you. Please consult the Terms of Use of
these sites for more details on our use of cookies.
2. WHEN DO WE DISCLOSE PERSONAL INFORMATION WE COLLECT ABOUT YOU?
To provide you with the products and services you request, to serve you
better and to manage our business, we may disclose personal information we
collect about you to our affiliated companies and to non-affiliated third
parties as required or permitted by law.
A. INFORMATION WE DISCLOSE TO OUR AFFILIATED COMPANIES. We do not disclose
personal information that we collect about you to our affiliated companies
except to enable them to provide services on our behalf or as otherwise
required or permitted by law.
B. INFORMATION WE DISCLOSE TO THIRD PARTIES. We do not disclose personal
information that we collect about you to non-affiliated third parties except
to enable them to provide services on our behalf, to perform joint marketing
agreements with
(continued on back)
Van Kampen High Yield Fund
An Important Notice Concerning Our U.S. Privacy Policy continued
other financial institutions, or as otherwise required or permitted by law.
For example, some instances where we may disclose information about you to
non-affiliated third parties include: for servicing and processing
transactions, to offer our own products and services, to protect against
fraud, for institutional risk control, to respond to judicial process or to
perform services on our behalf. When we share personal information with
these companies, they are required to limit their use of personal
information to the particular purpose for which it was shared and they are
not allowed to share personal information with others except to fulfill that
limited purpose.
3. HOW DO WE PROTECT THE SECURITY AND CONFIDENTIALITY OF PERSONAL
INFORMATION WE COLLECT ABOUT YOU?
We maintain physical, electronic and procedural security measures to help
safeguard the personal information we collect about you. We have internal
policies governing the proper handling of client information. Third parties
that provide support or marketing services on our behalf may also receive
personal information, and we require them to adhere to confidentiality
standards with respect to such information.
Van Kampen Funds Inc.
1 Parkview Plaza - Suite 100
P.O. Box 5555
Oakbrook Terrace, IL 60181-5555
www.vankampen.com
Copyright (C)2008 Van Kampen Funds Inc.
All rights reserved. Member FINRA/SIPC.
28, 128, 228, 628
HYISAN 4/08
(VAN KAMPEN INVESTMENTS LOGO) IU08-01979P-Y02/08
Item 2. Code of Ethics.
Not applicable for semi-annual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable for semi-annual reports.
Item 6. Schedule of Investments.
Please refer to Item #1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. Controls and Procedures
(a) The Fund's principal executive officer and principal financial officer have
concluded that the Fund's disclosure controls and procedures are sufficient to
ensure that information required to be disclosed by the Fund in this Form N-CSRS
was recorded, processed, summarized and reported within the time periods
specified in the Securities and Exchange Commission's rules and forms, based
upon such officers' evaluation of these controls and procedures as of a date
within 90 days of the filing date of the report.
(b) There were no changes in the registrant's internal control over financial
reporting that occurred during the second fiscal quarter of the period covered
by this report that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting.
Item 12. Exhibits.
(1) Code of Ethics -- Not applicable for semi-annual reports.
(2)(a) A certification for the Principal Executive Officer of the registrant is
attached hereto as part of EX-99.CERT.
(2)(b) A certification for the Principal Financial Officer of the registrant is
attached hereto as part of EX-99.CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Van Kampen High Yield Fund
By: /s/ Ronald E. Robison
----------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: April 17, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed by the following
persons on behalf of the registrant and in the capacities and on the dates
indicated.
By: /s/ Ronald E. Robison
----------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: April 17, 2008
By: /s/ Stuart N. Schuldt
----------------------
Name: Stuart N. Schuldt
Title: Principal Financial Officer
Date: April 17, 2008