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 811-6567
Van Kampen Municipal Opportunity Trust
(Exact name of registrant as specified in charter)
1221 Avenue of the Americas, New York, New York 10020
(Address of principal executive offices) (Zip code)
Ronald Robison
1221 Avenue of the Americas, New York, New York 10020
(Name and address of agent for service)
Registrant's telephone number, including area code: 212-762-4000
Date of fiscal year end: 10/31
Date of reporting period: 4/30/07
Item 1. Report to Shareholders
The Trust's semi-annual report transmitted to shareholders pursuant to
Rule 30e-1 under the Investment Company Act of 1940 is as follows:
Welcome, Shareholder
In this report, you'll learn about how your investment in Van Kampen
Municipal Opportunity Trust performed during the semiannual period. The
portfolio management team will provide an overview of the market
conditions and discuss some of the factors that affected investment
performance during the reporting period. In addition, this report
includes the trust's financial statements and a list of trust investments
as of April 30, 2007.
MARKET FORECASTS PROVIDED IN THIS REPORT MAY NOT NECESSARILY COME TO
PASS. THERE IS NO ASSURANCE THAT THE TRUST WILL ACHIEVE ITS INVESTMENT
OBJECTIVE. TRUSTS ARE SUBJECT TO MARKET RISK, WHICH IS THE POSSIBILITY
THAT THE MARKET VALUES OF SECURITIES OWNED BY THE TRUST WILL DECLINE AND
THAT THE VALUE OF TRUST SHARES MAY THEREFORE BE LESS THAN WHAT YOU PAID
FOR THEM. ACCORDINGLY, YOU CAN LOSE MONEY INVESTING IN THIS TRUST.
INCOME MAY SUBJECT CERTAIN INDIVIDUALS TO THE FEDERAL ALTERNATIVE MINIMUM
TAX (AMT).
---------------------------------------------------------------------------------------
NOT FDIC INSURED OFFER NO BANK GUARANTEE MAY LOSE VALUE
---------------------------------------------------------------------------------------
NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY NOT A DEPOSIT
---------------------------------------------------------------------------------------
Performance Summary as of 4/30/07
MUNICIPAL OPPORTUNITY TRUST
SYMBOL: VMO
------------------------------------------------------------
AVERAGE ANNUAL BASED ON BASED ON
TOTAL RETURNS NAV MARKET PRICE
Since Inception (4/24/92) 7.77% 7.50%
10-year 7.53 8.61
5-year 7.34 8.89
1-year 7.08 8.04
6-month 1.12 10.49
------------------------------------------------------------
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NO GUARANTEE OF
FUTURE RESULTS, AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE FIGURES
SHOWN. FOR THE MOST RECENT MONTH-END PERFORMANCE FIGURES, PLEASE VISIT
VANKAMPEN.COM OR SPEAK WITH YOUR FINANCIAL ADVISOR. INVESTMENT RETURNS, NET
ASSET VALUE (NAV) AND COMMON SHARE MARKET PRICE WILL FLUCTUATE AND TRUST SHARES,
WHEN SOLD, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
NAV per share is determined by dividing the value of the trust's portfolio
securities, cash and other assets, less all liabilities and preferred shares, by
the total number of common shares outstanding. The common share market price is
the price the market is willing to pay for shares of the trust at a given time.
Common share market price is influenced by a range of factors, including supply
and demand and market conditions. Total return assumes an investment at the
beginning of the period, reinvestment of all distributions for the period in
accordance with the trust's dividend reinvestment plan, and sale of all shares
at the end of the period. The trust's adviser has waived or reimbursed fees and
expenses from time to time; absent such waivers/ reimbursements the trust's
returns would have been lower.
The Lehman Brothers Municipal Bond Index is a broad-based statistical composite
of municipal bonds. The index does not include any expenses, fees or sales
charges, which would lower performance. The index is unmanaged and should not be
considered an investment. It is not possible to invest directly in an index.
1
Trust Report
FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2007
MARKET CONDITIONS
The overall environment for municipal bonds was favorable during the reporting
period, but mixed economic indicators and concerns about the residential housing
sector led to increased market uncertainty and volatility. At the beginning of
the period, the pace of economic growth appeared to be slowing, but in December,
the outlook for the economy turned positive following a slate of
stronger-than-expected economic releases. The improved economic picture pushed
bond yields higher and effectively reversed the run-up in prices that had begun
in July on concerns over the weak housing market's potential drag on the
economy. Bonds continued to decline until February, when the sub-prime mortgage
market showed signs of deterioration, causing a sell-off in equities and a
flight-to-quality bond market rally. In March, the rally ended as strong
employment reports and upward movement in inflationary pressures sparked selling
in an overbought Treasury market. At month end, however, the short end of the
bond market rebounded strongly following news that the Federal Open Market
Committee (the "Fed") had dropped its bias toward higher rates. This came as
somewhat of a surprise, given the fact that core inflation readings remained
elevated.
Municipal bond yields followed the general movement of the Treasury market.
However, the 30-year AAA municipal yield reached lows not seen in decades,
declining to 4.00 percent in the first half of the reporting period before
reversing course and ending the period higher at 4.10 percent. Yields on the
short end of the municipal curve rose more than long-term yields during the
period. As a result, the short end of the curve posted the lowest returns while
the long end outperformed other portions of the curve by as much as 70 basis
points. The slope of the municipal curve (which is defined by the traditional
yield advantage of bonds with longer maturities) still remained relatively flat
and as such, the yield differential between long maturity and short maturity
issues was quite small.
New issue supply rose dramatically during the period, increasing by 34 percent
versus the same six-month period a year ago, as relatively low interest rates
spurred municipalities to refinance their debt. Demand for municipal bonds was
robust as well, particularly for high-yield securities as investors proved
increasingly willing to take on more risk in return for relatively higher
yields. The strong demand caused most credit spreads, which were already near
historically tight levels, to further narrow. As a result, the lower-quality,
higher yielding segment of the market considerably outperformed, returning 182
basis points more than the investment-grade segment for the overall period.
2
PERFORMANCE ANALYSIS
The Trust's return can be calculated based upon either the market price or the
net asset value (NAV) of its shares. NAV per share is determined by dividing the
value of the trust's portfolio securities, cash and other assets, less all
liabilities and preferred shares, by the total number of common shares
outstanding, while market price reflects the supply and demand for the shares.
As a result, the two returns can differ, as they did during the reporting
period. On an NAV basis, the Trust underperformed its benchmark index, the
Lehman Brothers Municipal Bond Index. On a market price basis, the Trust
outperformed its benchmark.
TOTAL RETURNS FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2007
---------------------------------------------------------------
BASED ON BASED ON LEHMAN BROTHERS MUNICIPAL
NAV MARKET PRICE BOND INDEX
1.12% 10.49% 1.59%
---------------------------------------------------------------
Performance data quoted represents past performance, which is no guarantee of
future results, and current performance may be lower or higher than the figures
shown. Investment return, net asset value and common share market price will
fluctuate and Trust shares, when sold, may be worth more or less than their
original cost. See Performance Summary for additional performance information
and index definition.
A variety of strategies drove the Trust's performance during the course of the
period. One of the key drivers was our focus on the long end of the yield curve.
Given the relatively flat shape of the curve throughout the period, we invested
in bonds with maturities of 25 years or more in order to capture more attractive
yields. The emphasis on longer-maturity issues proved beneficial to performance
as this segment of the curve outperformed for the overall period.
We also focused on the higher-yielding sector of the market, adding to positions
in BBB rated credits in particular. Additionally, in an effort to further
enhance yield, we added to the Trust's holdings of inverse floating-rate
securities.* These strategies were additive to the Trust's performance during
the first four months of the period. In the last two months, however, spread
widening led the performance of lower-rated credits to wane and rising interest
rates hurt the performance of inverse floating-rate securities. As a result, the
Trust's emphasis on these credits detracted somewhat from performance late in
the period. Because the inverse floating-rate securities effectively added to
the portfolio's duration (a measure of interest-rate risk), we hedged that risk
by selling 10- and 30-year U.S. Treasury futures. This strategy was additive to
performance for the overall period and served to keep the Trust's duration
neutral to that of the Lehman Brothers Municipal Bond Index.
The biggest contributor to the Trust's underperformance versus the Lehman
Brothers Municipal Bond Index was its holdings in tobacco revenue bonds.
*An inverse floating-rate security, or "inverse floater", is a variable rate
security whose coupon rate changes in the opposite direction from the change in
the reference rate used to calculate the coupon rate.
3
A large amount of older tobacco bonds were pre-refunded during the period.
Unlike the Lehman Brothers Municipal Bond Index, which contained these older
bonds, the Trust only had positions in newer tobacco bonds which were not
pre-refunded. As such, the portfolio was not able to benefit from the refundings
that took place during the period, which detracted from the performance of the
Trust's holdings in this sector relative to those of the Lehman Brothers
Municipal Bond Index. In addition, the portfolio had an overweight in the sector
relative to the Lehman Brothers Municipal Bond Index, which dampened returns in
the latter months of the period when spreads widened.
The Trust was also overweighted versus the Lehman Brothers Municipal Bond Index
in health care securities. Over the course of the period, an abundant supply in
the sector pushed spreads wider and prices lower. As a result, the portfolio's
positioning here hindered returns. Conversely, strong security selection and a
slight overweight relative to the Lehman Brothers Municipal Bond Index in
utilities served the Trust well, as this sector enjoyed strong performance. The
Trust remained well diversified across a broad spectrum of municipal market
sectors. As of the end of the period, hospital, airports, and master tobacco
settlement bonds represented the portfolio's largest sector weightings.
The Trustees have approved a procedure whereby the trust may, when appropriate,
repurchase its shares in the open market or in privately negotiated transactions
at a price not above market value or NAV, whichever is lower at the time of
purchase. This may help support the market value of the trust's shares.
There is no guarantee that any sectors mentioned will continue to perform as
discussed herein or that securities in such sectors will be held by the Trust in
the future.
CHANGES IN INVESTMENT POLICIES
The Board of Trustees of the trust recently approved a non-fundamental
investment policy for the trust allowing it to invest up to 20 percent of its
assets in unrated securities that have been determined by Van Kampen Asset
Management (the "Adviser") to be of comparable quality to those rated investment
grade. This is in addition to the trust's current non-fundamental policy
allowing it to invest up to 20 percent of its assets in unrated securities that
have been determined by the Adviser to be of comparable quality to those rated
below investment grade (BB/Ba or B by Standard & Poor's, Moody's Investor
Services, Inc. or Fitch Ratings, Inc.).
Unrated securities may be less liquid than rated securities. This may have the
effect of limiting the ability of the trust to sell such securities at their
fair value in response to changes in the economy or the financial markets.
4
RATINGS ALLOCATION AS OF 4/30/07
AAA/Aaa 58.2%
AA/Aa 9.7
A/A 13.0
BBB/Baa 17.4
BB/Ba 0.1
B/B 0.3
Non-Rated 1.3
TOP FIVE SECTORS AS OF 4/30/07
Hospital 19.3%
Airports 10.7
Master Tobacco Settlement 9.8
Wholesale Electric 8.2
General Purpose 7.2
SUMMARY OF INVESTMENTS BY STATE CLASSIFICATION AS OF 4/30/07
New Jersey 10.6%
California 10.4
New York 8.9
Texas 8.1
Illinois 6.8
Washington 4.2
Pennsylvania 3.4
Alabama 3.3
North Carolina 3.2
Indiana 2.9
Missouri 2.7
South Carolina 2.6
Nevada 2.4
Arizona 2.3
Puerto Rico 2.2
Colorado 2.1
Kentucky 2.0
Massachusetts 2.0
Georgia 1.8
Oklahoma 1.7
Louisiana 1.7
South Dakota 1.5
Maryland 1.2
Florida 1.2
District of Columbia 1.1
Ohio 1.1
Minnesota 1.1
Oregon 1.0
Connecticut 0.9
West Virginia 0.8
Iowa 0.7
Tennessee 0.7
Alaska 0.6
Nebraska 0.5
Wisconsin 0.5
(continued on next page)
5
SUMMARY OF INVESTMENTS BY STATE CLASSIFICATION AS OF 4/30/07
(continued from previous page)
Virginia 0.4
New Mexico 0.3
Michigan 0.3
New Hampshire 0.3
Utah 0.2
Wyoming 0.1
North Dakota 0.1
Mississippi 0.1
-----
Total Investments 100.0%
Subject to change daily. Provided for informational purposes only and should not
be deemed as a recommendation to buy or sell the securities mentioned or
securities in the sectors shown above. All percentages are shown as a percentage
of total investments. Securities are classified by sectors that represent broad
groupings of related industries. Van Kampen is a wholly owned subsidiary of a
global securities firm which is engaged in a wide range of financial services
including, for example, securities trading and brokerage activities, investment
banking, research and analysis, financing and financial advisory services.
Rating allocations based upon ratings as issued by Standard and Poor's and
Moody's, respectively.
6
FOR MORE INFORMATION ABOUT PORTFOLIO HOLDINGS
Each Van Kampen trust provides a complete schedule of portfolio holdings
in its semiannual and annual reports within 60 days of the end of the
trust's second and fourth fiscal quarters. The semiannual reports and the
annual reports are filed electronically with the Securities and Exchange
Commission (SEC) on Form N-CSRS and Form N-CSR, respectively. Van Kampen
also delivers the semiannual and annual reports to trust shareholders,
and makes these reports available on its public Web site,
www.vankampen.com. In addition to the semiannual and annual reports that
Van Kampen delivers to shareholders and makes available through the Van
Kampen public Web site, each trust files a complete schedule of portfolio
holdings with the SEC for the trust's first and third fiscal quarters on
Form N-Q. Van Kampen does not deliver the reports for the first and third
fiscal quarters to shareholders, nor are the reports posted to the Van
Kampen public Web site. You may, however, obtain the Form N-Q filings (as
well as the Form N-CSR and N-CSRS filings) by accessing the SEC's Web
site, http://www.sec.gov. You may also review and copy them at the SEC's
Public Reference Room in Washington, DC. Information on the operation of
the SEC's Public Reference Room may be obtained by calling the SEC at
(800) SEC-0330. You can also request copies of these materials, upon
payment of a duplicating fee, by electronic request at the SEC's e-mail
address (publicinfo@sec.gov) or by writing the Public Reference section
of the SEC, Washington, DC 20549-0102.
You may obtain copies of a trust's fiscal quarter filings by contacting
Van Kampen Client Relations at (800) 341-2929.
7
PROXY VOTING POLICY AND PROCEDURES AND PROXY VOTING RECORD
You may obtain a copy of the Trust's Proxy Voting Policy and Procedures
without charge, upon request, by calling toll free (800) 341-2929 or by
visiting our Web site at www.vankampen.com. It is also available on the
Securities and Exchange Commission's Web site at http://www.sec.gov.
You may obtain information regarding how the Trust voted proxies relating
to portfolio securities during the most recent twelve-month period ended
June 30 without charge by visiting our Web site at www.vankampen.com.
This information is also available on the Securities and Exchange
Commission's Web site at http://www.sec.gov.
8
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST
PORTFOLIO OF INVESTMENTS - APRIL 30, 2007 (UNAUDITED)
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
------------------------------------------------------------------------------------------------
MUNICIPAL BONDS 187.4%
ALABAMA 6.1%
$ 1,000 Alabama Bldg Renovation Fin Auth Rev Rfdg
(AMBAC Insd)................................ 5.625% 09/01/24 $ 1,058,230
1,550 Birmingham, AL Arpt Auth Arpt Rev Rfdg
(AMBAC Insd) (AMT) (a)...................... 5.500 07/01/14 1,611,008
4,000 Birmingham Baptist Med Ctr AL Spl Care Fac
Fin Auth Rev Baptist Hlth Sys Inc Ser A..... 5.000 11/15/30 4,082,120
1,000 Jefferson Cnty, AL Ltd Oblig Sch Wt Ser A... 5.000 01/01/24 1,045,170
4,250 Jefferson Cnty, AL Ltd Oblig Sch Wt Ser A... 5.250 01/01/23 4,526,037
2,295 Marshall Cnty, AL Hlthcare Ser C............ 6.000 01/01/32 2,467,033
5 Mobile, AL Indl Dev Brd Solid Waste Disp Rev
Mobile Energy Svc Co Proj Rfdg.............. 6.950 01/01/20 469
2,000 Montgomery, AL Wt (AMBAC Insd).............. 5.250 05/01/20 2,154,680
2,000 Montgomery Cnty, AL Pub Bldg Auth Rev Wt Fac
Proj (MBIA Insd)............................ 5.000 03/01/31 2,113,200
14,850 University of AL at Birmingham Hosp Rev Ser
A (d)....................................... 5.000 09/01/41 15,148,881
--------------
34,206,828
--------------
ALASKA 1.1%
1,000 Alaska St Hsg Fin Corp Gen Hsg Ser A
(FGIC Insd)................................. 5.250 12/01/41 1,061,230
5,000 Northern Tob Sec Corp AK Tob Settlement Rev
Asset Bkd Ser A............................. 5.000 06/01/46 4,919,600
--------------
5,980,830
--------------
ARIZONA 4.4%
1,425 Arizona Cap Fac Fin Corp Student Hsg Rev AZ
St Univ Proj................................ 6.250 09/01/32 1,512,851
2,900 Arizona Tourism & Sports Auth Multi Purp
Stad Fac Ser A (MBIA Insd) (Prerefunded @
7/01/13).................................... 5.375 07/01/22 3,163,088
1,500 Maricopa Cnty, AZ Stad Dist Rfdg (AMBAC
Insd)....................................... 5.375 06/01/19 1,610,070
2,875 Phoenix, AZ Civic Impt Corp Arpt Rev Jr Lien
(FGIC Insd) (AMT)........................... 5.375 07/01/29 2,881,095
495 Pima Cnty, AZ Indl Dev Auth Indl Rev Lease
Oblig Irvington Proj Tucson Rfdg Ser A (FSA
Insd)....................................... 7.250 07/15/10 508,771
14,840 University of AZ Med Ctr Corp............... 5.000 07/01/35 15,062,748
--------------
24,738,623
--------------
CALIFORNIA 19.6%
2,630 Anaheim, CA Pub Fin Auth Lease Rev Cap
Apprec Sub Pub Impt Proj Ser C (FSA Insd)... * 09/01/20 1,499,047
2,400 Bay Area Govt Assn CA Rev Tax Alloc CA Redev
Pool Ser A (XLCA Insd)...................... 5.250 09/01/29 2,570,856
1,050 California Cnty, CA Tob Sec Agy Asset Bkd
Merced Cnty Rfdg Ser A...................... 5.125 06/01/38 1,053,402
See Notes to Financial Statements 9
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2007 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
------------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
$ 2,000 California Cnty, CA Tob Sec Agy Asset Bkd
Sonoma Cnty Corp Rfdg....................... 5.125% 06/01/38 $ 2,002,540
1,750 California Cnty, CA Tob Sec Agy Asset Bkd
Sonoma Cnty Corp Rfdg....................... 5.250 06/01/45 1,774,308
15,000 California Hlth Fac Fin Auth Rev Cedars
Sinai Med Ctr Rfdg (d)...................... 5.000 11/15/34 15,408,900
1,800 California Hlth Fac Fin Auth Rev Kaiser
Permanente Ser A............................ 5.000 04/01/37 1,850,130
2,000 California Pollutn Ctl Fin Auth Solid Waste
Disp Rev Waste Mgmt Inc Proj Ser B (AMT).... 5.000 07/01/27 2,037,400
20 California Rural Home Mtg Fin Auth Single
Family Mtg Rev Ser C (GNMA Collateralized)
(AMT)....................................... 7.800 02/01/28 20,369
630 California St (AMBAC Insd).................. 5.125 10/01/27 639,236
3,775 California St (AMBAC Insd) (Prerefunded @
10/01/07)................................... 5.125 10/01/27 3,835,362
7,000 California Statewide Cmnty Dev Auth Rev
Daughters of Charity Hlth Ser A............. 5.000 07/01/39 7,095,620
7,750 California Statewide Cmnty Dev Auth Rev
Daughters of Charity Hlth Ser A............. 5.250 07/01/30 8,059,845
5,000 California Statewide Cmnty Dev Auth Rev Hlth
Fac Adventist Hlth Ser A.................... 5.000 03/01/30 5,133,350
3,000 California Statewide Cmnty Dev Auth Rev Hlth
Fac Adventist Hlth Ser A.................... 5.000 03/01/35 3,068,100
3,600 California Statewide Cmnty Dev Auth Rev
Kaiser Permanente Ser B..................... 5.000 03/01/41 3,691,548
5,200 California Statewide Cmnty Dev Auth Rev
Kaiser Permanente Ser B..................... 5.250 03/01/45 5,460,156
2,000 California St Dept Wtr Res Pwr Ser A
(Prerefunded @ 5/01/12)..................... 5.750 05/01/17 2,212,480
5,770 California St (Prerefunded @ 2/01/14)....... 5.000 02/01/33 6,226,811
3,500 California St Pub Wk Brd Lease Rev Dept
Corrections Ser C........................... 5.250 06/01/28 3,708,390
2,000 California St Pub Wk Brd Lease Rev Dept
Mental Hlth Coalinga Ser A.................. 5.000 06/01/25 2,090,260
5,000 Foothill/Eastern Corridor Agy CA Toll Rd Rev
Cap Apprec Rfdg............................. * 01/15/25 1,841,000
4,000 Foothill/Eastern Corridor Agy CA Toll Rd Rev
Conv Cap Apprec Sr Lien Ser A (e)........... 7.050 01/01/10 4,351,280
2,400 Tobacco Sec Auth Northn CA Tob Settlement
Rev Asset Bkd Ser A-1....................... 5.375 06/01/38 2,465,736
1,600 Tobacco Sec Auth Northn CA Tob Settlement
Rev Asset Bkd Ser A-1....................... 5.500 06/01/45 1,650,560
6,000 Tobacco Sec Auth Southn CA Tob Settlement
Ser A-1..................................... 5.000 06/01/37 5,958,180
10 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2007 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
------------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
$ 12,000 Tobacco Sec Auth Southn CA Tob Settlement
Ser A-1..................................... 5.125% 06/01/46 $ 12,013,560
1,600 Turlock, CA Hlth Fac Rev Ctf Partn Emanuel
Med Ctr Inc................................. 5.375 10/15/34 1,672,368
--------------
109,390,794
--------------
COLORADO 4.0%
3,000 Colorado Hlth Fac Auth Rev Catholic Hlth
Initiatives Ser A (e)....................... 5.500 03/01/32 3,223,200
2,500 Colorado Hlth Fac Auth Rev Covenant
Retirement Cmnty Inc........................ 5.000 12/01/35 2,539,150
3,700 Colorado Hlth Fac Auth Rev Evangelical
Lutheran.................................... 5.000 06/01/35 3,779,809
1,000 Colorado Hlth Fac Auth Rev Hosp Portercare
Adventist Hlth (Prerefunded @ 11/15/11)..... 6.500 11/15/31 1,122,060
1,000 Colorado Hsg Fin Auth Multi-Family Hsg Ins
Mtg Ser B-2 (FHA Gtd) (AMT)................. 5.800 10/01/28 1,015,660
5,440 Colorado Hsg Fin Auth Single Family Mtg Rev
Ser C-3 (AMT) (d)........................... 4.625 11/01/36 5,362,480
56 Colorado Hsg Fin Auth Single Family Pgm Sr
Ser A-2 (AMT)............................... 7.250 05/01/27 56,075
20 Colorado Hsg Fin Auth Single Family Pgm Sr
Ser C-1 (AMT)............................... 7.550 11/01/27 20,020
1,005 Greeley, CO Multi-Family Rev Hsg Mtg Creek
Stone (FHA Gtd) (AMT)....................... 5.950 07/01/28 1,026,165
530 Highlands Ranch Metro Dist No 2 CO (FSA
Insd) (e)................................... 6.500 06/15/11 586,583
470 Highlands Ranch Metro Dist No 2 CO
(FSA Insd).................................. 6.500 06/15/11 520,177
1,500 Park Creek Metro Dist CO Rev Sr Ltd Tax Ppty
Rfdg........................................ 5.500 12/01/37 1,593,975
1,500 University of CO Hosp Auth Rev Ser A........ 5.250 11/15/39 1,557,375
--------------
22,402,729
--------------
CONNECTICUT 1.6%
6,500 Connecticut St Spl Oblig Pkg Rev Bradley
Intl Arpt Ser A (ACA Insd) (AMT)............ 6.600 07/01/24 7,057,310
1,000 Hartford, CT Pkg Sys Rev Ser A (Prerefunded
@ 7/01/10).................................. 6.400 07/01/20 1,079,210
1,000 Mashantucket West Pequot Tribe CT Spl Rev
Ser A (f)................................... 5.500 09/01/36 1,057,890
--------------
9,194,410
--------------
See Notes to Financial Statements 11
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2007 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA 2.1%
$ 2,500 District Columbia Rev Gonzaga College
(FSA Insd).................................. 5.250% 07/01/32 $ 2,658,850
8,850 Metropolitan WA Auth Sys Ser A
(FGIC Insd) (AMT)........................... 5.250 10/01/32 9,300,288
--------------
11,959,138
--------------
FLORIDA 2.3%
460 Escambia Cnty, FL Hlth Auth Rev FL Hlthcare
Fac Ln VHA Pgm (AMBAC Insd)................. 5.950 07/01/20 477,600
2,500 Highlands Cnty, FL Hlth Fac Auth Rev Hosp
Adventist Hlth Sys Ser C.................... 5.250 11/15/36 2,620,375
1,000 Highlands Cnty, FL Hlth Fac Auth Rev Hosp
Adventist Hlth Sys Ser D.................... 5.000 11/15/35 1,020,530
1,000 Lakeland, FL Hosp Sys Rev Lakeland Regl Hlth
Sys (Prerefunded @ 11/15/12)................ 5.500 11/15/32 1,094,690
2,500 Miami-Dade Cnty, FL Aviation Miami Intl Arpt
(FGIC Insd) (AMT)........................... 5.375 10/01/32 2,639,600
2,100 Miami-Dade Cnty, FL Aviation Miami Intl Arpt
Ser A (FGIC Insd) (AMT)..................... 5.375 10/01/27 2,219,343
215 North Broward, FL Hosp Dist Rev Impt........ 6.000 01/15/31 229,149
2,160 North Broward, FL Hosp Dist Rev Impt
(Prerefunded @ 1/15/11)..................... 6.000 01/15/31 2,347,423
--------------
12,648,710
--------------
GEORGIA 3.4%
1,000 Atlanta, GA Arpt Rev Ser B (FGIC Insd)
(AMT)....................................... 5.625 01/01/30 1,046,970
1,383 Fulton Cnty, GA Lease Rev (Acquired
12/23/94, Cost $1,382,772) (c).............. 7.250 06/15/10 1,408,921
7,000 Georgia Muni Elec Auth Pwr Rev Ser A (MBIA
Insd)....................................... 6.500 01/01/20 8,674,260
3,770 Monroe Cnty, GA Dev Auth Pollutn Ctl Rev
Oglethorpe Pwr Corp Scherer Ser A........... 6.800 01/01/12 4,230,279
2,500 Municipal Elec Auth GA Combustion Turbine
Proj Ser A (MBIA Insd)...................... 5.250 11/01/21 2,665,700
1,000 Oconee Cnty, GA Indl Dev Auth Rev Oiit Proj
(XLCA Insd)................................. 5.250 07/01/25 1,057,880
--------------
19,084,010
--------------
ILLINOIS 12.9%
3,750 Bolingbrook, IL Cap Apprec Ser B (MBIA
Insd)....................................... * 01/01/30 1,116,787
3,150 Chicago, IL O'Hare Intl Arpt Rev Gen Arpt
Third Lien Rfdg Ser A (MBIA Insd) (AMT)..... 5.375 01/01/32 3,307,311
20,900 Chicago, IL O'Hare Intl Arpt Rev Gen Arpt
Third Lien (MBIA Insd) (d).................. 5.250 01/01/24 23,090,803
615 Chicago, IL Pk Dist Ser C (FGIC Insd)....... 5.500 01/01/19 655,049
1,885 Chicago, IL Pk Dist Ser C (FGIC Insd)
(Prerefunded @ 7/01/11)..................... 5.500 01/01/19 2,016,008
12 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2007 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
------------------------------------------------------------------------------------------------
ILLINOIS (CONTINUED)
$ 10 Chicago, IL Single Family Mtg Rev Ser A
(GNMA Collateralized) (AMT)................. 7.000% 09/01/27 $ 10,247
4,500 Cook Cnty, IL Cap Impt Ser A (FGIC Insd).... 5.000 11/15/23 4,650,165
6,000 Illinois Fin Auth Rev Northwestern Mem Hosp
Ser A....................................... 5.500 08/15/43 6,528,360
3,630 Kendall, Kane & Will Cntys, IL Cmnty Unit
Sch Dist No 308 Ser B (FGIC Insd) (a)....... 5.250 10/01/20 3,884,572
1,925 Kendall, Kane & Will Cntys, IL Cmnty Unit
Sch Dist No 308 Ser B (FGIC Insd)........... 5.250 10/01/21 2,060,000
1,250 Metropolitan Pier & Expo Auth IL Dedicated
St Tax Rev McCormick Pl Expn Proj Ser A
(FGIC Insd)................................. 5.375 12/15/18 1,311,138
2,000 Metropolitan Pier & Expo Auth IL Dedicated
St Tax Rev McCormick Pl Expn Proj Ser A
(FGIC Insd)................................. 5.500 12/15/24 2,098,620
6,000 Metropolitan Pier & Expo Auth IL Dedicated
St Tax Rev McCormick Pl Expn Ser A (MBIA
Insd)....................................... 5.250 06/15/42 6,372,480
3,000 Pekin, IL Mtg Rev United Auto Workers Inc
Proj Ser A (GNMA Collateralized)............ 5.250 05/20/34 3,079,260
5,000 Regional Tran Auth IL Ser B (AMBAC Insd).... 8.000 06/01/17 6,612,500
5,000 University IL Univ Rev Aux Sys Fac Rfdg Ser
A (AMBAC Insd).............................. 5.000 04/01/30 5,147,550
--------------
71,940,850
--------------
INDIANA 5.4%
1,000 Allen Cnty, IN Juvenile Just Ctr First Mtg
(AMBAC Insd)................................ 5.500 01/01/18 1,076,660
3,270 Allen Cnty, IN War Mem Coliseum Ser A (AMBAC
Insd) (Prerefunded @ 11/01/11) (a).......... 5.500 11/01/16 3,544,745
8,240 Indiana Hlth Fac Fin Auth Hosp Rev Cmnty
Proj Ser A (AMBAC Insd)..................... 5.000 05/01/35 8,618,546
2,000 Indiana Hlth Fac Fin Auth Hosp Rev Columbus
Regl Hosp Rfdg (FSA Insd)................... 7.000 08/15/15 2,289,040
2,500 Indiana St Dev Fin Auth Rev Exempt Fac Conv
Rfdg (AMT).................................. 5.950 08/01/30 2,570,825
2,300 Indiana St Hsg & Cmnty Dev Auth Single
Family Mtg Rev Amt Mtg (GNMA Collateralized)
(AMT) (d)................................... 4.600 07/01/31 2,261,970
10,000 Indiana St Hsg & Cmnty Dev Auth Single
Family Mtg Rev Ser D-1 (GNMA Collateralized)
(AMT) (d)................................... 4.625 07/01/38 9,757,550
--------------
30,119,336
--------------
See Notes to Financial Statements 13
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2007 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
------------------------------------------------------------------------------------------------
IOWA 1.3%
$ 1,890 Des Moines, IA Pub Pkg Sys Rev Ser A (FGIC
Insd) (a)................................... 5.750% 06/01/17 $ 2,001,378
2,500 Tobacco Settlement Auth IA Rev Asset Bkd
Ser C....................................... 5.500 06/01/42 2,597,525
2,500 Tobacco Settlement Auth IA Rev Asset Bkd
Ser C....................................... 5.625 06/01/46 2,618,175
--------------
7,217,078
--------------
KENTUCKY 3.8%
1,475 Kenton Cnty, KY Arpt Brd Rev
Cincinnati/Northn KY Intl Arpt Rfdg Ser A
(MBIA Insd) (AMT)........................... 6.200 03/01/08 1,503,202
300 Kentucky Hsg Corp Hsg Rev Ser F (FNMA
Collateralized) (AMT)....................... 5.450 01/01/32 308,214
14,295 Louisville & Jefferson Cntys, KY Metro Govt
Hlth Sys Rev Norton Hlthcare Inc (d)........ 5.250 10/01/36 14,871,565
4,500 Louisville & Jefferson Cntys, KY Metro Govt
Indl Bldg Rev Sisters of Mercy Cincinnati... 5.000 10/01/35 4,606,785
--------------
21,289,766
--------------
LOUISIANA 3.3%
5,000 Lafayette, LA Util Rev (MBIA Insd).......... 5.250 11/01/23 5,408,400
60 Louisiana Hsg Fin Agy Mtg Rev Single Family
Access Pgm Ser B (GNMA Collateralized)
(AMT)....................................... 8.000 03/01/25 61,118
1,960 Louisiana Hsg Fin Agy Rev Azalea Estates
Rfdg Ser A (GNMA Collateralized) (AMT)...... 5.375 10/20/39 2,055,177
3,000 Louisiana St Energy & Pwr Auth Pwr Proj Rev
Rfdg (FSA Insd)............................. 5.750 01/01/12 3,241,980
7,000 Louisiana St Gas & Fuels Tax Ser A
(FGIC Insd) (d)............................. 5.000 05/01/41 7,370,615
--------------
18,137,290
--------------
MARYLAND 2.3%
2,000 Baltimore, MD Convention Ctr Hotel Rev Ser A
(XLCA Insd) (d)............................. 5.250 09/01/24 2,179,240
2,050 Maryland St Econ Dev Corp Student Hsg Rev
Univ MD College Pk Proj Rfdg (Prerefunded @
06/01/13)................................... 5.625 06/01/35 2,267,341
2,000 Maryland St Hlth & Higher Ed Fac Auth Rev
Medstar Hlth Rfdg........................... 5.375 08/15/24 2,112,700
1,200 Maryland St Hlth & Higher Ed Fac Auth Rev
Union Hosp Cecil Cnty Issue................. 5.000 07/01/40 1,227,384
4,710 Northeast, MD Waste Disp Auth Rfdg (AMBAC
Insd) (AMT)................................. 5.500 04/01/16 5,055,337
--------------
12,842,002
--------------
14 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2007 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
------------------------------------------------------------------------------------------------
MASSACHUSETTS 3.7%
$ 3,955 Massachusetts Bay Trans Auth Gen Trans Sys
Rfdg Ser A.................................. 5.500% 03/01/12 $ 4,155,756
4,800 Massachusetts St Dev Fin Agy Rev College
Pharmacy & Allied Hlth Ser D (AGL Insd)..... 5.000 07/01/35 4,997,232
3,000 Massachusetts St Dev Fin Agy Semass Sys Ser
A (MBIA Insd)............................... 5.625 01/01/16 3,247,860
1,000 Massachusetts St Hlth & Ed Fac Auth Rev
Partn Hlthcare Sys Ser C.................... 5.750 07/01/32 1,077,610
1,000 Massachusetts St Hlth & Ed Fac Auth Rev
Saint Mem Med Ctr Ser A..................... 6.000 10/01/23 1,001,050
6,050 Massachusetts St Hlth & Ed Fac Auth Rev Univ
MA Mem Issue Ser D.......................... 5.000 07/01/33 6,144,864
--------------
20,624,372
--------------
MICHIGAN 0.6%
3,000 Kent Hosp Fin Auth MI Rev Metro Hosp Proj
Ser A....................................... 6.250 07/01/40 3,352,110
--------------
MINNESOTA 2.0%
10 Chaska, MN Elec Rev Ser A................... 6.100 10/01/30 10,683
990 Chaska, MN Elec Rev Ser A
(Prerefunded @ 10/01/10).................... 6.100 10/01/30 1,066,121
1,150 Maple Grove, MN Hlthcare Fac Rev North Mem
Hlthcare.................................... 5.000 09/01/35 1,185,903
2,200 Saint Paul, MN Hsg & Redev Auth Hosp Rev
Hlth East Proj.............................. 6.000 11/15/30 2,439,250
2,000 Saint Paul, MN Hsg & Redev Auth Hosp Rev
Hlth East Proj.............................. 6.000 11/15/35 2,208,380
3,875 Saint Paul, MN Port Auth Lease Rev Office
Bldg at Cedar Str (a)....................... 5.250 12/01/19 4,198,369
--------------
11,108,706
--------------
MISSISSIPPI 0.1%
520 Mississippi Home Corp Single Family Rev Mtg
Ser C (GNMA Collateralized) (AMT)........... 7.600 06/01/29 542,178
240 Mississippi Home Corp Single Family Rev Mtg
Ser F (GNMA Collateralized) (AMT)........... 7.550 12/01/27 252,298
--------------
794,476
--------------
MISSOURI 5.0%
1,800 Cape Girardeau Cnty, MO Indl Dev Auth
Hlthcare Facs Rev Southeast MO Hosp Assoc
(Prerefunded @ 6/01/12)..................... 5.500 06/01/22 1,918,386
350 Cape Girardeau Cnty, MO Indl Southeast MO
Hosp Assoc.................................. 5.500 06/01/22 365,011
1,345 Kansas City, MO Metro Cmnty Leasehold Jr
College Impt & Rfdg (FGIC Insd) (Prerefunded
@ 7/01/11).................................. 5.500 07/01/17 1,436,339
See Notes to Financial Statements 15
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2007 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
------------------------------------------------------------------------------------------------
MISSOURI (CONTINUED)
$ 1,375 Missouri St Hlth & Ed Fac Auth Rev Sr Living
Fac Lutheran Ser A.......................... 5.375% 02/01/35 $ 1,444,644
1,210 Saint Louis, MO Arpt Rev Cap Impt Pgm Ser A
(MBIA Insd) (Prerefunded @ 7/01/12)......... 5.375 07/01/18 1,305,384
3,000 Sikeston, MO Elec Rev Rfdg (MBIA Insd)...... 6.200 06/01/10 3,140,790
5,505 Springfield, MO Pub Bldg Corp Leasehold Rev
Amt Springfield Branson Arpt (AMBAC Insd)
(AMT) (d)................................... 4.550 07/01/29 5,408,415
6,655 Springfield, MO Pub Bldg Corp Leasehold Rev
Amt Springfield Branson Arpt (AMBAC Insd)
(AMT) (d)................................... 4.600 07/01/36 6,538,238
6,500 Springfield, MO Pub Util Rev (FGIC Insd).... 4.500 08/01/36 6,462,950
--------------
28,020,157
--------------
NEBRASKA 0.9%
5,000 Omaha, NE Pub Pwr Dist Elec Rev Sys Ser A... 5.000 02/01/39 5,213,350
--------------
NEVADA 4.4%
15,000 Clark Cnty, NV Arpt Rev Sub Lien Ser A-2
(FGIC Insd)................................. 5.000 07/01/36 15,655,200
6,000 Clark Cnty, NV Indl Dev Rev Southwest Gas
Corp Proj Ser A (AMBAC Insd) (AMT).......... 5.250 07/01/34 6,344,340
2,800 Clark Cnty, NV Indl Dev Rev Southwest Gas
Corp Proj Ser A (FGIC Insd) (AMT)........... 4.750 09/01/36 2,818,732
--------------
24,818,272
--------------
NEW HAMPSHIRE 0.6%
1,155 New Hampshire Hlth & Ed Fac Auth Rev
Derryfield Sch.............................. 7.000 07/01/30 1,251,327
845 New Hampshire Hlth & Ed Fac Univ Sys of NH
(AMBAC Insd)................................ 5.500 07/01/15 909,626
1,000 New Hampshire St Bus Fin Auth Wtr Fac Rev
Pennichuck Wtrwks Inc (AMBAC Insd) (AMT).... 6.300 05/01/22 1,021,840
--------------
3,182,793
--------------
NEW JERSEY 19.9%
3,110 Newark, NJ Hsg Auth Port Auth Newark Marine
Terminal (MBIA Insd) (Prerefunded @
1/01/14).................................... 5.250 01/01/20 3,383,804
5,000 New Jersey Econ Dev Auth Mtr Veh Rev Ser A
(MBIA Insd)................................. 5.000 07/01/22 5,334,400
2,700 New Jersey Econ Dev Auth Rev Cig Tax........ 5.750 06/15/29 2,923,803
2,000 New Jersey Econ Dev Auth Rev Cig Tax........ 5.750 06/15/34 2,154,380
3,000 New Jersey Econ Dev Auth Rev Motor Vehicle
Sur Rev Ser A (MBIA Insd)................... 5.000 07/01/23 3,167,040
30,000 New Jersey Econ Dev Auth St Contract Econ
Recovery (MBIA Insd)........................ 5.900 03/15/21 35,721,900
16 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2007 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
------------------------------------------------------------------------------------------------
NEW JERSEY (CONTINUED)
$ 8,000 New Jersey Econ Dev Auth Wtr Fac Rev NJ Amer
Wtr Co Inc Proj Ser A (FGIC Insd) (AMT)..... 6.875% 11/01/34 $ 8,097,920
10,000 New Jersey St Ed Fac Auth Higher Ed Cap Impt
Ser A (AMBAC Insd) (Prerefunded @
9/01/12).................................... 5.250 09/01/21 10,766,400
40,000 Tobacco Settlement Fin Corp NJ Ser 1A (d)... 5.000 06/01/41 39,444,000
--------------
110,993,647
--------------
NEW MEXICO 0.6%
2,020 University NM Univ Rev Sub Lien Rfdg
Ser A (a)................................... 5.250 06/01/20 2,155,684
1,125 University NM Univ Rev Sub Lien Rfdg Ser
A........................................... 5.250 06/01/21 1,200,566
--------------
3,356,250
--------------
NEW YORK 16.7%
5,000 Long Island, NY Pwr Auth Elec Sys Rev Gen
Ser B....................................... 5.000 12/01/35 5,270,400
5,000 Nassau Cnty, NY Tob Settlement Corp Asset
Bkd Ser A-3................................. 5.000 06/01/35 5,085,650
1,000 Nassau Cnty, NY Tob Settlement Corp Asset
Bkd Ser A-3................................. 5.125 06/01/46 1,023,290
11,000 New York City Hsg Dev Corp Multi-Family Rent
Hsg Rev Progress of Peoples Dev Ser B (FNMA
Collateralized) (AMT)....................... 4.950 05/15/36 11,186,010
1,255 New York City Indl Dev Civic YMCA Gtr NY
Proj........................................ 5.800 08/01/16 1,289,425
3,720 New York City Ser A......................... 7.000 08/01/07 3,748,532
2,525 New York St Dorm Auth Lease Rev Muni Hlth
Fac Impt Pgm Ser A (FSA Insd)............... 5.500 05/15/25 2,578,808
1,625 New York St Dorm Auth Lease Rev St Univ Dorm
Fac Ser A (Prerefunded @ 7/01/10)........... 6.000 07/01/14 1,754,496
3,100 New York St Dorm Auth Rev City Univ Sys Cons
Ser A....................................... 5.625 07/01/16 3,437,590
2,600 New York St Dorm Auth Rev Cons City Univ Sys
Second Gen Ser A............................ 5.750 07/01/13 2,809,690
2,040 New York St Dorm Auth Rev Secd Hosp Gen Hosp
Rfdg........................................ 5.750 02/15/18 2,235,493
775 New York St Dorm Auth Rev Ser B............. 7.500 05/15/11 845,386
650 New York St Dorm Auth Rev Ser B (Prerefunded
@ 5/15/10).................................. 7.500 05/15/11 708,805
500 New York St Dorm Auth Rev St Supported Debt
Mental Hlth Ser A (Prerefunded @ 4/27/07)
(a)......................................... 5.750 08/15/12 510,000
320 New York St Dorm Auth Rev St Supported Debt
Mental Hlth Ser B (a)....................... 5.750 08/15/11 326,867
2,195 New York St Dorm Auth Rev St Supported Debt
Mental Hlth Ser B (Prerefunded @ 4/27/07)
(a)......................................... 5.750 08/15/11 2,238,900
5,000 New York St Dorm Auth Rev St Univ Ed Fac
Ser A....................................... 5.500 05/15/08 5,089,750
See Notes to Financial Statements 17
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2007 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
$ 1,500 New York St Dorm Auth Rev Upstate Cmnty
Colleges Ser B.............................. 5.250% 07/01/20 $ 1,613,370
1,000 New York St Dorm Auth Rev Upstate Cmnty
Colleges Ser B.............................. 5.250 07/01/21 1,075,580
1,055 New York St Mtg Agy Rev Homeowner Mtg Ser 82
(AMT)....................................... 5.650 04/01/30 1,089,804
3,755 New York St Mtg Agy Rev Ser 101 (AMT)....... 5.400 04/01/32 3,861,792
15,000 Port Auth NY & NJ Cons Ser 144 (d).......... 5.000 10/01/35 15,907,126
4,000 Port Auth NY & NJ Spl Oblig Rev Spl Proj JFK
Intl Arpt Terminal 6 (MBIA Insd) (AMT)...... 5.750 12/01/22 4,121,360
12,960 TSASC Inc NY Ser 1.......................... 5.000 06/01/34 13,178,117
2,150 Westchester, NY Tob Asset Sec Corp.......... 5.125 06/01/38 2,201,342
--------------
93,187,583
--------------
NORTH CAROLINA 5.9%
1,500 North Carolina Eastn Muni Pwr Agy Pwr Sys
Rev Ser D................................... 6.700 01/01/19 1,610,430
22,000 North Carolina Muni Pwr Agy No 1 Catawba
Elec Rev Rfdg (MBIA Insd)................... 6.000 01/01/12 24,115,740
7,000 North Carolina Muni Pwr Agy Ser A
(MBIA Insd)................................. 5.250 01/01/19 7,496,370
--------------
33,222,540
--------------
NORTH DAKOTA 0.2%
700 North Dakota St Hsg Fin Agy Rev Hsg Fin Pgm
Home Mtg Fin Ser B (MBIA Insd) (AMT)........ 5.500 07/01/29 708,435
330 North Dakota St Hsg Fin Agy Ser C (AMT)..... 5.550 07/01/29 332,036
--------------
1,040,471
--------------
OHIO 2.1%
1,000 Cleveland-Cuyahoga Cnty, OH Port Auth Rev
Student Hsg Euclid Ave Fenn Proj (AMBAC
Insd)....................................... 5.000 08/01/28 1,052,040
1,000 Cleveland, OH Muni Sch Dist (FSA Insd)...... 5.250 12/01/24 1,080,920
1,500 Cuyahoga Cnty, OH Hosp Fac Rev Canton Inc
Proj........................................ 7.500 01/01/30 1,644,195
2,450 Lorain Cnty, OH Hosp Rev Catholic Hlthcare
Impt & Rfdg Ser A........................... 5.250 10/01/33 2,561,475
2,000 Lorain Cnty, OH Hosp Rev Catholic Hlthcare
Ser S....................................... 5.375 10/01/30 2,107,320
3,000 Lucas Cnty, OH Hosp Rev Promedica Hlthcare
Oblig Rfdg (MBIA Insd)...................... 6.000 11/15/07 3,036,600
--------------
11,482,550
--------------
OKLAHOMA 3.3%
3,410 Jenks, OK Aquarium Auth Rev Rfdg
(MBIA Insd) (a)............................. 5.250 07/01/24 3,680,072
1,475 Jenks, OK Aquarium Auth Rev Rfdg (MBIA
Insd)....................................... 5.250 07/01/33 1,593,723
18 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2007 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
------------------------------------------------------------------------------------------------
OKLAHOMA (CONTINUED)
$ 3,970 McAlester, OK Pub Wk Auth Util Cap Apprec
(FSA Insd).................................. * 02/01/34 $ 1,223,673
2,250 Oklahoma City, OK Pub Ppty Auth Hotel Tax
Rev (FGIC Insd)............................. 5.250% 10/01/29 2,456,010
1,065 Oklahoma Dev Fin Auth Lease Rev OK Council
Law Enforcement (MBIA Insd) (a)............. 5.500 06/01/17 1,147,261
1,120 Oklahoma Dev Fin Auth Lease Rev OK Council
Law Enforcement (MBIA Insd) (a)............. 5.500 06/01/18 1,209,141
1,185 Oklahoma Dev Fin Auth Lease Rev OK Council
Law Enforcement (MBIA Insd) (a)............. 5.500 06/01/19 1,279,314
2,250 Tulsa Cnty, OK Pub Fac Auth Cap Impt Rev
(AMBAC Insd) (Prerefunded @ 11/01/09)....... 6.250 11/01/22 2,431,620
3,140 Tulsa, OK Indl Auth Hosp Rev Hillcrest Med
Cent Proj Rfdg (Connie Lee Insd) (a) (e).... 6.250 06/01/08 3,225,439
--------------
18,246,253
--------------
OREGON 1.9%
5,000 Oregon Hlth Sciences Univ Insd Ser A
(MBIA Insd)................................. 5.250 07/01/22 5,324,400
5,000 Oregon St Dept Admin Rfdg Ser C (MBIA
Insd)....................................... 5.250 11/01/18 5,321,650
--------------
10,646,050
--------------
PENNSYLVANIA 6.4%
2,210 Chartiers Vly, PA Sch Dist Ser A (FSA Insd)
(a)......................................... 5.250 10/15/19 2,402,933
24,740 Pennsylvania St Pub Sch Bldg Auth Lease Rev
Sch Dist Ser B (FSA Insd) (d)............... 4.500 06/01/32 24,646,978
3,000 Susquehanna Area Regl Arpt Auth PA Arpt Sys
Rev Ser A (AMBAC Insd) (AMT)................ 5.375 01/01/21 3,167,970
5,415 Susquehanna Area Regl Arpt Auth PA Ser A
(AMBAC Insd) (AMT) (a)...................... 5.375 01/01/22 5,715,370
--------------
35,933,251
--------------
SOUTH CAROLINA 4.9%
2,500 Charleston Ed Excellence Fin Corp SC Rev
Charleston Cnty Sch Dist (d)................ 5.250 12/01/25 2,676,788
7,500 Charleston Ed Excellence Fin Corp SC Rev
Charleston Cnty Sch Dist (d)................ 5.250 12/01/26 8,030,362
5,000 Easley, SC Util Rev Impt & Comb Rfdg
(FSA Insd).................................. 5.000 12/01/34 5,269,100
2,000 Laurens Cnty, SC Sch Dist No 55 Installment
Pur Rev..................................... 5.250 12/01/30 2,120,400
5,000 South Carolina Jobs Econ Dev Auth Indl Rev
Elec & Gas Co Proj Ser A (AMBAC Insd)....... 5.200 11/01/27 5,286,150
3,750 South Carolina Jobs Econ Dev Auth Indl Rev
Elec & Gas Co Proj Ser B (AMBAC Insd)
(AMT)....................................... 5.450 11/01/32 3,982,162
--------------
27,364,962
--------------
See Notes to Financial Statements 19
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2007 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
------------------------------------------------------------------------------------------------
SOUTH DAKOTA 2.9%
$ 1,375 Deadwood, SD Ctf Partn (ACA Insd)........... 6.375% 11/01/20 $ 1,456,579
4,000 South Dakota Hsg Dev Auth Homeownership Mtg
Ser E (AMT) (d)............................. 4.500 11/01/26 3,916,100
8,060 South Dakota Hsg Dev Auth Homeownership Mtg
Ser E (AMT) (d)............................. 4.625 05/01/36 7,896,100
2,500 South Dakota St Hlth & Ed Fac Auth Rev Sioux
Vly Hosp & Hlth Sys Ser A................... 5.250 11/01/34 2,634,550
--------------
15,903,329
--------------
TENNESSEE 1.3%
1,750 Chattanooga, TN Hlth Ed & Hsg Fac Brd Rev
CDFI Phase I LLC Proj Rfdg Ser A............ 5.125 10/01/35 1,789,550
2,000 Elizabethton, TN Hlth & Ed Fac Brd Rev Impt
Hosp First Mtg Rfdg Ser B................... 8.000 07/01/33 2,339,200
1,500 Elizabethton, TN Hlth & Ed Fac Brd Rev Impt
Hosp Rfdg Ser B (MBIA Insd) (a)............. 7.750 07/01/29 1,792,200
1,000 Johnson City, TN Hlth & Ed Fac Brd Hosp Rev
First Mtg Mtn St Hlth Rfdg Ser A (MBIA
Insd)....................................... 7.500 07/01/25 1,193,650
--------------
7,114,600
--------------
TEXAS 14.8%
2,000 Alliance Arpt Auth Inc TX Spl Fac Rev FedEx
Corp Proj Rfdg (AMT)........................ 4.850 04/01/21 2,044,980
2,350 Austin, TX Ctf Oblig (MBIA Insd) (a)........ 5.375 09/01/20 2,527,707
2,545 Dallas Cnty, TX Cmnty College Fin Sys (AMBAC
Insd) (Prerefunded @ 2/15/10) (a)........... 5.375 02/15/17 2,657,285
5,500 Dallas-Fort Worth, TX Intl Arpt Rev Jt Impt
& Rfdg Ser A (FGIC Insd) (AMT).............. 5.500 11/01/31 5,810,200
4,000 Dallas-Fort Worth, TX Intl Arpt Rev Jt Ser A
(FGIC Insd) (AMT)........................... 5.750 11/01/30 4,165,440
8,000 Dallas-Fort Worth, TX Intl Arpt Rev Jt Ser A
(FSA Insd) (AMT)............................ 5.500 11/01/21 8,664,480
2,000 Harris Cnty, TX Hlth Fac Dev Corp Hosp Rev
Mem Hermann Hlthcare Ser A (Prerefunded @
6/01/11).................................... 6.375 06/01/29 2,212,280
2,000 Houston, TX Arpt Sys Rev Sub Lien (FSA
Insd)....................................... 5.500 07/01/20 2,155,680
10,000 Houston, TX Arpt Sys Rev Sub Lien Ser A (FSA
Insd) (AMT)................................. 5.125 07/01/32 10,326,200
3,000 Houston, TX Arpt Sys Rev Sub Lien Ser A (FSA
Insd) (AMT)................................. 5.625 07/01/30 3,141,300
12,000 Houston, TX Util Sys Rev First Lien Rfdg Ser
A (FSA Insd)................................ 5.250 05/15/21 12,935,280
2,185 Lower CO Riv Auth TX Transmission Contract
Rev LCRA Svc Corp Proj Rfdg (FGIC Insd)..... 5.000 05/15/24 2,265,758
2,185 Lower CO Riv Auth TX Transmission Contract
Rev LCRA Svc Corp Proj Rfdg (FGIC Insd)..... 5.000 05/15/25 2,270,717
20 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2007 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
------------------------------------------------------------------------------------------------
TEXAS (CONTINUED)
$ 4,000 Lower CO Riv Auth TX Transmission Contract
Rev LCRA Svc Corp Proj Rfdg (FGIC Insd)..... 5.000% 05/15/33 $ 4,109,520
1,000 Matagorda Cnty, TX Na Dist No 1 Rev Coll
Centerpoint Energy Proj Rfdg................ 5.600 03/01/27 1,064,560
3,000 Metropolitan Hlth Fac Dev Corp TX Wilson N
Jones Mem Hosp Proj......................... 7.250 01/01/31 3,111,360
10,000 North Cent, TX Hlth Fac Dev Hosp Childrens
Med Ctr Dallas (AMBAC Insd)................. 5.250 08/15/32 10,543,500
2,360 University of TX Univ Rev Fin Sys Ser B
(Prerefunded @ 8/15/13)..................... 5.250 08/15/20 2,558,688
--------------
82,564,935
--------------
UTAH 0.4%
2,380 Mountain Regl Wtr Spl Svc Dist Rfdg
(MBIA Insd)................................. 5.000 12/15/33 2,497,429
--------------
VIRGINIA 0.7%
2,000 Tobacco Settlement Fin Corp VA Asset Bkd.... 5.500 06/01/26 2,139,120
1,670 Tobacco Settlement Fin Corp VA Asset Bkd
(Prerefunded @ 6/01/15)..................... 5.625 06/01/37 1,857,675
--------------
3,996,795
--------------
WASHINGTON 7.9%
9,850 Bellevue, WA Convention Ctr Auth Spl Oblig
Rev Comp Int Rfdg (MBIA Insd)............... * 02/01/25 4,532,773
7,500 Chelan Cnty, WA Pub Util Dist No 001 Cons
Rev Chelan Hydro Ser A (MBIA Insd) (AMT).... 5.600 01/01/36 7,995,075
5,000 Energy Northwest WA Elec Rev Columbia
Generating Rfdg Ser A (FSA Insd)............ 5.500 07/01/16 5,386,400
2,500 Energy Northwest WA Elec Rev Proj No 3 Rfdg
Ser A (FSA Insd)............................ 5.500 07/01/18 2,688,200
5,000 Energy Northwest WA Elec Rev Proj No 3 Rfdg
Ser B (FSA Insd)............................ 6.000 07/01/16 5,530,100
2,000 Port Seattle, WA Rev Ser B (MBIA Insd)
(AMT)....................................... 5.625 02/01/24 2,096,520
2,120 Seattle, WA Muni Lt & Pwr Rev............... 5.625 12/01/17 2,242,663
3,000 Spokane, WA Pub Fac Dist Hotel Motel & Sales
Use Tax (MBIA Insd)......................... 5.250 09/01/33 3,196,380
4,750 Tacoma, WA Elec Sys Rev Rfdg Ser A (FSA
Insd)....................................... 5.750 01/01/14 5,122,495
1,500 Tacoma, WA Elec Sys Rev Rfdg Ser B (FSA
Insd)....................................... 5.500 01/01/12 1,612,395
5,125 Washington St Pub Pwr Supply Sys Nuclear
Proj No 3 Rev Rfdg Ser C (MBIA Insd) (a).... * 07/01/14 3,855,435
--------------
44,258,436
--------------
See Notes to Financial Statements 21
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2007 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
------------------------------------------------------------------------------------------------
WEST VIRGINIA 1.4%
$ 8,000 Harrison Cnty, WV Cmnty Solid Waste Disp Rev
West Penn Pwr Co Proj Ser A (MBIA Insd)
(AMT)....................................... 6.875% 04/15/22 $ 8,019,520
--------------
WISCONSIN 0.9%
1,500 Southeast WI Professional Baseball Pk Dist
Sales Tax Rev Rfdg Ser A (MBIA Insd)........ 5.500 12/15/20 1,728,525
3,000 Wisconsin St Hlth & Ed Fac Wheaton
Franciscan Svc Rfdg (Prerefunded @
2/15/12).................................... 5.750 08/15/30 3,289,290
--------------
5,017,815
--------------
WYOMING 0.2%
1,000 University WY Univ Rev Fac Impt (FSA
Insd)....................................... 5.500 06/01/18 1,065,890
--------------
PUERTO RICO 4.1%
10,000 Puerto Rico Comwlth Hwy & Trans Auth Hwy Rev
Rfdg Ser Y (FSA Insd) (g)................... 6.250 07/01/21 12,372,000
3,000 Puerto Rico Elec Pwr Auth Pwr Ser TT (b).... 5.000 07/01/27 3,172,620
7,000 Puerto Rico Elec Pwr Auth Pwr Ser TT (b).... 5.000 07/01/32 7,373,240
--------------
22,917,860
--------------
TOTAL LONG-TERM INVESTMENTS 187.4%
(Cost $996,454,232).......................................................... 1,047,096,796
SHORT-TERM INVESTMENTS 0.3%
(Cost $2,000,000)............................................................ 2,000,000
--------------
TOTAL INVESTMENTS 187.7%
(Cost $998,454,232).......................................................... 1,049,096,796
LIABILITY FOR FLOATING RATE NOTE OBLIGATIONS RELATED TO SECURITIES
HELD (26.7%)
(Cost ($149,130,000))
(149,130) Notes with interest rates ranging from 3.95% to 4.08% at April
30, 2007 and collateral with contractual maturities ranging
from 2024 to 2041 (See Note 1) (h)............................ (149,130,000)
--------------
TOTAL NET INVESTMENTS 161.0%
(Cost $847,454,424).......................................................... 899,966,796
LIABILITIES IN EXCESS OF OTHER ASSETS (0.1%).................................. (548,132)
PREFERRED SHARES (INCLUDING ACCRUED DISTRIBUTIONS) (60.9%).................... (340,531,657)
--------------
NET ASSETS APPLICABLE TO COMMON SHARES 100.0%................................. $ 558,887,007
==============
22 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2007 (UNAUDITED) continued
Percentages are calculated as a percentage of net assets applicable to common
shares.
* Zero coupon bond
(a) The Trust owns 100% of the outstanding bond issuance.
(b) Security purchased on a when-issued or delayed delivery basis.
(c) Securities are restricted and may be resold only in transactions exempt from
registration which are normally those transactions with qualified
institutional buyers. Restricted securities comprise 0.3% of net assets
applicable to common shares.
(d) Underlying security related to Inverse Floaters entered into by the Trust.
See Note 1.
(e) Escrowed to Maturity
(f) 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.
(g) All or a portion of this security has been physically segregated in
connection with open futures contracts.
(h) Floating rate notes. The interest rate shown reflects the rates in effect at
April 30, 2007.
ACA--American Capital Access
AGL--Assured Guaranty Ltd.
AMBAC--AMBAC Indemnity Corp.
AMT--Alternative Minimum Tax
Connie Lee--Connie Lee Insurance Co.
FGIC--Financial Guaranty Insurance Co.
FHA--Federal Housing Administration
FNMA--Federal National Mortgage Association
FSA--Financial Security Assurance Inc.
GNMA--Government National Mortgage Association
MBIA--Municipal Bond Investors Assurance Corp.
XLCA--XL Capital Assurance Inc.
FUTURES CONTRACTS OUTSTANDING AS OF APRIL 30, 2007:
UNREALIZED
APPRECIATION/
SHORT CONTRACTS: CONTRACTS DEPRECIATION
----------------------------------------------------------------------------------------
U.S. Treasury Bonds Futures, June 2007 (Current Notional
Value of $111,750 per contract)........................... 1,088 $422,195
----- --------
See Notes to Financial Statements 23
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
April 30, 2007 (Unaudited)
ASSETS:
Total Investments (Cost $998,454,232)....................... $1,049,096,796
Receivables:
Interest.................................................. 14,900,213
Investments Sold.......................................... 125,000
Other....................................................... 6,336
--------------
Total Assets............................................ 1,064,128,345
--------------
LIABILITIES:
Floating Rate Note Obligations.............................. 149,130,000
Payables:
Investments Purchased..................................... 10,491,740
Custodian Bank............................................ 2,708,617
Variation Margin on Futures............................... 918,000
Investment Advisory Fee................................... 331,818
Income Distributions--Common Shares....................... 84,739
Other Affiliates.......................................... 40,268
Trust Shares Repurchased.................................. 4,000
Trustees' Deferred Compensation and Retirement Plans........ 852,728
Accrued Expenses............................................ 147,771
--------------
Total Liabilities....................................... 164,709,681
Preferred Shares (including accrued distributions).......... 340,531,657
--------------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $ 558,887,007
==============
NET ASSET VALUE PER COMMON SHARE ($558,887,007 divided by
34,128,537 shares outstanding)............................ $ 16.38
==============
NET ASSETS CONSIST OF:
Common Shares ($.01 par value with an unlimited number of
shares authorized, 34,128,537 shares issued and
outstanding).............................................. $ 341,285
Paid in Surplus............................................. 507,585,872
Net Unrealized Appreciation................................. 51,064,759
Accumulated Undistributed Net Investment Income............. 1,592,544
Accumulated Net Realized Loss............................... (1,697,453)
--------------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $ 558,887,007
==============
PREFERRED SHARES ($.01 par value, authorized 100,000,000
shares, 13,600 issued with liquidation preference of
$25,000 per share)........................................ $ 340,000,000
==============
NET ASSETS INCLUDING PREFERRED SHARES....................... $ 898,887,007
==============
24 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST
FINANCIAL STATEMENTS continued
Statement of Operations
For the Six Months Ended April 30, 2007 (Unaudited)
INVESTMENT INCOME:
Interest.................................................... $25,088,367
-----------
EXPENSES:
Investment Advisory Fee..................................... 2,466,636
Interest and Residual Trust Expenses........................ 2,286,221
Preferred Share Maintenance................................. 444,789
Professional Fees........................................... 72,896
Accounting and Administrative Expenses...................... 71,463
Trustees' Fees and Related Expenses......................... 64,374
Reports to Shareholders..................................... 42,173
Custody..................................................... 29,174
Transfer Agent Fees......................................... 18,973
Registration Fees........................................... 18,883
Other....................................................... 74,311
-----------
Total Expenses.......................................... 5,589,893
Investment Advisory Fee Reduction....................... 373,848
Less Credits Earned on Cash Balances.................... 282
-----------
Net Expenses............................................ 5,215,763
-----------
NET INVESTMENT INCOME....................................... $19,872,604
===========
REALIZED AND UNREALIZED GAIN/LOSS:
Realized Gain/Loss:
Investments............................................... $ 1,001,531
Futures................................................... (1,114,244)
Swap Contracts............................................ (1,473,278)
-----------
Net Realized Loss........................................... (1,585,991)
-----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 57,935,347
-----------
End of the Period:
Investments............................................. 50,642,564
Futures................................................. 422,195
-----------
51,064,759
-----------
Net Unrealized Depreciation During the Period............... (6,870,588)
-----------
NET REALIZED AND UNREALIZED LOSS............................ $(8,456,579)
===========
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS..................... $(6,052,074)
===========
NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM
OPERATIONS................................................ $ 5,363,951
===========
See Notes to Financial Statements 25
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST
FINANCIAL STATEMENTS continued
Statements of Changes in Net Assets (Unaudited)
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2007 OCTOBER 31, 2006
------------------------------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income................................... $ 19,872,604 $ 32,814,011
Net Realized Gain/Loss.................................. (1,585,991) 2,557,650
Net Unrealized Appreciation/Depreciation During the
Period................................................ (6,870,588) 11,137,467
Distributions to Preferred Shareholders:
Net Investment Income................................. (6,052,074) (9,290,320)
Net Realized Gain..................................... -0- (1,286,223)
------------ ------------
Change in Net Assets Applicable to Common Shares from
Operations............................................ 5,363,951 35,932,585
Distributions to Common Shareholders:
Net Investment Income................................. (13,323,330) (23,610,637)
Net Realized Gain..................................... -0- (5,326,749)
------------ ------------
NET CHANGE IN NET ASSETS APPLICABLE TO COMMON SHARES
FROM INVESTMENT ACTIVITIES............................ (7,959,379) 6,995,199
FROM CAPITAL TRANSACTIONS:
Proceeds from Common Shares Acquired Through Merger..... -0- 306,870,227
Cost of Shares Repurchased.............................. (692,124) -0-
------------ ------------
TOTAL INCREASE/DECREASE IN NET ASSETS APPLICABLE TO
COMMON SHARES......................................... (8,651,503) 313,865,426
NET ASSETS APPLICABLE TO COMMON SHARES:
Beginning of the Period................................. 567,538,510 253,673,084
------------ ------------
End of the Period (Including accumulated undistributed
net investment income of $1,592,544 and $1,095,344,
respectively)......................................... $558,887,007 $567,538,510
============ ============
26 See Notes to Financial Statements
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST
FINANCIAL HIGHLIGHTS (UNAUDITED)
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE
TRUST OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, -----------------------------------------------
2007 2006 2005 2004 2003 2002
------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF THE
PERIOD.................................. $ 16.61 $ 16.52 $ 16.89 $ 17.02 $ 17.48 $ 17.59
------- ------- ------- ------- ------- -------
Net Investment Income................... 0.58(a) 1.11(a) 1.12 1.13 1.19 1.23
Net Realized and Unrealized Gain/Loss... (0.24) 0.49 (0.33) 0.23 0.09 0.15
Common Share Equivalent of Distributions
Paid to Preferred Shareholders:
Net Investment Income................. (0.18) (0.31) (0.22) (0.10) (0.08) (0.09)
Net Realized Gain..................... 0.00 (0.04) 0.00 (0.02) (0.04) (0.08)
------- ------- ------- ------- ------- -------
Total from Investment Operations......... 0.16 1.25 0.57 1.24 1.16 1.21
Distributions Paid to Common
Shareholders:
Net Investment Income................. (0.39) (0.81) (0.94) (1.08) (1.16) (1.08)
Net Realized Gain..................... 0.00 (0.35) 0.00 (0.29) (0.46) (0.24)
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF THE PERIOD....... $ 16.38 $ 16.61 $ 16.52 $ 16.89 $ 17.02 $ 17.48
======= ======= ======= ======= ======= =======
Common Share Market Price at End of the
Period.................................. $ 15.84 $ 14.70 $ 14.35 $ 15.20 $ 16.65 $ 16.04
Total Return* (b)........................ 10.49%** 10.76% 0.55% -0.60% 14.53% 11.36%
Net Assets Applicable to Common Shares at
End of the Period (In millions)......... $ 558.9 $ 567.5 $ 253.7 $ 259.4 $ 261.3 $ 268.3
Ratio of Expenses to Average Net Assets
Applicable to Common Shares* (c)........ 1.86% 1.36% 1.18% 1.30% 1.28% 1.42%
Ratio of Net Investment Income to Average
Net Assets Applicable to Common Shares*
(c)..................................... 7.10% 6.86% 6.67% 6.74% 6.90% 7.17%
Portfolio Turnover....................... 5%** 20% 32% 28% 36% 43%
* If certain expenses had not been voluntarily assumed by Van Kampen, total return would have been
lower and the ratios would have been as follows:
Ratio of Expenses to Average Net Assets
Applicable to Common Shares (c)...... 2.00% N/A N/A N/A N/A N/A
Ratio of Net Investment Income to
Average Net Assets Applicable to
Common Shares (c).................... 6.96% N/A N/A N/A N/A N/A
SUPPLEMENTAL RATIOS:
Ratio of Expenses (Excluding Interest and
Residual Trust Expenses) to Average Net
Assets Applicable to Common Shares
(c)..................................... 1.05% 1.25% 1.18% 1.30% 1.28% 1.42%
Ratio of Expenses (Excluding Interest and
Residual Trust Expenses) to Average Net
Assets Including Preferred Shares (c)... 0.65% 0.78% 0.75% 0.82% 0.81% 0.91%
Ratio of Net Investment Income to Average
Net Assets Applicable to Common Shares
(d)..................................... 4.94% 4.92% 5.37% 6.15% 6.43% 6.61%
SENIOR SECURITIES:
Total Preferred Shares Outstanding....... 13,600 13,600 6,000 6,000 6,000 6,000
Asset Coverage Per Preferred Share (e)... $66,134 $66,761 $67,307 $68,253 $68,560 $69,736
Involuntary Liquidating Preference Per
Preferred Share......................... $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
Average Market Value Per Preferred
Share................................... $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
** Non-Annualized
(a)Based on average shares outstanding.
(b)Total return assumes an investment at the common share market price at the
beginning of the period indicated, reinvestment of all distributions for the
period in accordance with the Trust's dividend reinvestment plan, and sale of
all shares at the closing common share market price at the end of the period
indicated.
(c)Ratios do not reflect the effect of dividend payments to preferred
shareholders.
(d)Ratios reflect the effect of dividend payments to preferred shareholders.
(e)Calculated by subtracting the Trust's total liabilities (not including the
preferred shares) from the Trust's total assets and dividing this by the
number of preferred shares outstanding.
N/A=Not Applicable
See Notes to Financial Statements 27
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2007 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen Municipal Opportunity Trust (the "Trust") is registered as a
diversified, closed-end management investment company under the Investment
Company Act of 1940 (the "1940 Act"), as amended. The Trust's investment
objective is to provide a high level of current income exempt from federal
income tax, consistent with preservation of capital. The Trust commenced
investment operations on April 24, 1992.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
A. SECURITY VALUATION Municipal bonds are valued by independent pricing services
or dealers using the mean of the last reported bid and asked prices or, in the
absence of market quotations, at fair value based upon yield data relating to
municipal bonds with similar characteristics and general market conditions.
Securities which are not valued by independent pricing services or dealers are
valued at fair value using procedures established in good faith by the Board of
Trustees. Futures contracts are valued at the settlement price established each
day on the exchange on which they are traded. Interest rate swaps are valued
using market quotations obtained from brokers. Short-term securities with
remaining maturities of 60 days or less are valued at amortized cost, which
approximates market value.
B. SECURITY TRANSACTIONS Security transactions are recorded on a trade date
basis. Realized gains and losses are determined on an identified cost basis. The
Trust may purchase and sell securities on a "when-issued" or "delayed-delivery"
basis with settlement to occur at a later date. The value of the security so
purchased is subject to market fluctuations during this period. The Trust will
segregate assets with the custodian having an aggregate value at least equal to
the amount of the when-issued or delayed delivery purchase commitments until
payment is made. At April 30, 2007, the Trust had $10,491,740 of when issued or
delayed delivery purchase commitments.
C. INVESTMENT INCOME Interest income is recorded on an accrual basis. Bond
premium is amortized and discount is accreted over the expected life of each
applicable security.
D. FEDERAL INCOME TAXES It is the Trust's policy to comply with the requirements
of Subchapter M of the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all of its taxable income to its
shareholders. Therefore, no provision for federal income taxes is required. The
Trust intends to utilize provisions of the federal income tax laws which allow
it to carry a realized capital loss forward for eight years following the year
of the loss and offset these losses against any future realized capital gains.
28
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2007 (UNAUDITED) continued
At October 31, 2006, the Trust had an accumulated capital loss carryforward for
tax purposes of $1,757,902 which will expire according to the following
schedule.
AMOUNT EXPIRATION
$ 577,984................................................... October 31, 2013
1,179,918................................................... October 31, 2014
Part of the capital loss carryforward above was acquired due to a merger
with another regulated investment company. Please see footnote 3 for details.
At April 30, 2007, the cost and related gross unrealized appreciation and
depreciation are as follows:
Cost of investments for tax purposes........................ $847,538,661
============
Gross tax unrealized appreciation........................... $ 54,179,740
Gross tax unrealized depreciation........................... (1,751,605)
------------
Net tax unrealized appreciation on investments.............. $ 52,428,135
============
E. DISTRIBUTION OF INCOME AND GAINS The Trust declares and pays monthly
dividends from net investment income to common shareholders. Net realized gains,
if any, are distributed at least annually on a pro rata basis to common and
preferred shareholders. Distributions from net realized gains for book purposes
may include short-term capital gains and a portion of futures gains, which are
included as ordinary income for tax purposes.
The tax character of distributions paid during the year ended October 31,
2006 was as follows:
Distributions paid from:
Ordinary income......................................... $ 478,073
Tax exempt income....................................... 32,610,353
Long-term capital gain.................................. 6,136,619
-----------
$39,225,045
===========
As of October 31, 2006, the components of distributable earnings on a tax
basis were as follows:
Undistributed ordinary income............................... $ 217
Undistributed tax-exempt income............................. 1,471,303
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 sale
transactions.
F. FLOATING RATE NOTE OBLIGATIONS RELATED TO SECURITIES HELD The Trust enters
into transactions in which it transfers to dealer trusts fixed rate bonds in
exchange for cash and residual interests in the dealer trusts' assets and cash
flows, which are in the form of inverse floating rate investments. The dealer
trusts fund the purchases of the fixed rate bonds by issuing floating rate notes
to third parties and allowing the Trust to retain residual interests
29
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2007 (UNAUDITED) continued
in the bonds. The Trust enters into shortfall agreements with the dealer trusts,
which commit the Trust to pay the dealer trusts, in certain circumstances, the
difference between the liquidation value of the fixed rate bonds held by the
dealer trusts and the liquidation value of the floating rate notes held by third
parties, as well as any shortfalls in interest cash flows. The residual
interests held by the Trust (inverse floating rate investments) include the
right of the Trust (1) to cause the holders of the floating rate notes to tender
their notes at par at the next interest rate reset date, and (2) to transfer the
municipal bond from the dealer trusts to the Trust, thereby collapsing the
dealer trusts. The Trust accounts for the transfer of bonds to the dealer trusts
as secured borrowings, with the securities transferred remaining in the Trust's
investment assets, and the related floating rate note obligations and any
administrative expenses of the dealer trusts under the caption "Interest and
Residual Trust Expenses" on the Trust's Statement of Operations. The notes
issued by the dealer trusts have interest rates that reset weekly and the
floating rate note holders have the option to tender their notes to the dealer
trusts for redemption at par at each reset date. At April 30, 2007, Trust
investments with a value of $209,916,109 are held by the dealer trusts and serve
as collateral for the $149,130,000 in floating rate notes outstanding at that
date. Contractual maturities of the floating rate notes and interest rates in
effect at April 30, 2007 are presented on the Portfolio of Investments.
G. EXPENSE REDUCTION During the six months ended April 30, 2007, the Trust's
custody fee was reduced by $282 as a result of credits earned on cash balances.
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of the Trust's Investment Advisory Agreement, Van Kampen Asset
Management (the "Adviser") will provide investment advice and facilities to the
Trust for an annual fee payable monthly of .55% of the average daily net assets
including preferred shares of the Trust. Effective December 1, 2006, the Adviser
has agreed to waive investment advisory fees equal to .10% of the average daily
net assets including preferred shares of the Trust. During the period ended
April 30, 2007, the Adviser waived $373,848 of its advisory fees. This waiver is
voluntary and can be discontinued at any time.
For the six months ended April 30, 2007, the Trust recognized expenses of
approximately $34,400 representing legal services provided by Skadden, Arps,
Slate, Meagher & Flom LLP, of which a trustee of the Trust is a partner of such
firm and he and his law firm provide legal services as legal counsel to the
Trust.
Under separate Legal Services, Accounting Services and Chief Compliance
Officer (CCO) Employment agreements, the Adviser provides accounting and legal
services and the CCO provides compliance services to the Trust. The costs of
these services are allocated to each trust. For the six months ended April 30,
2007, the Trust recognized expenses of approximately $41,300 representing Van
Kampen Investments Inc.'s or its affiliates' (collectively "Van Kampen") cost of
providing accounting and legal services to the Trust, as well as the salary,
benefits and related costs of the CCO and related support staff paid by Van
Kampen. Services provided pursuant to the Legal Services agreement are reported
as part of "Professional Fees" on the Statement of Operations. 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.
30
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2007 (UNAUDITED) continued
Certain officers and trustees of the Trust are also officers and directors
of Van Kampen. The Trust does not compensate its officers and trustees who are
also officers of Van Kampen.
The Trust provides deferred compensation and retirement plans for its
trustees who are not officers of Van Kampen. Under the deferred compensation
plan, trustees may elect to defer all or a portion of their compensation to a
later date. Benefits under the retirement plan are payable upon retirement for a
ten-year period and are based upon each trustee's years of service to the Trust.
The maximum annual benefit per trustee under the plan is $2,500.
3. CAPITAL TRANSACTIONS
For the six months ended April 30, 2007 and the year ended October 31, 2006,
transactions in common shares were as follows:
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2007 OCTOBER 31, 2006
Beginning Shares........................................ 34,172,537 15,357,684
Shares Repurchased*..................................... (44,000) -0-
Shares Acquired Through Merger.......................... -0- 18,814,853
---------- ----------
Ending Shares........................................... 34,128,537 34,172,537
========== ==========
* On February 28, 2007, the Trust commenced a share repurchase program for
purposes of enhancing stockholder value and reducing the discount at which the
Trust's shares trade from their net asset value. For the period ended April 30,
2007, the Trust repurchased 44,000 of its shares at an average discount of 5.42%
from net asset value per share. The Trust expects to continue to repurchase its
outstanding shares at such time and in such amounts as it believes such activity
will further the accomplishment of the foregoing objectives, subject to review
of the Trustees.
On January 27, 2006, the Trust acquired all of the assets and liabilities of
the Van Kampen Advantage Municipal Income Trust (ticker symbol VKA) through a
tax-free reorganization approved by VKA's shareholders on January 11, 2006. The
Trust issued 18,814,853 common shares with a net asset value of $306,870,227 and
7,600 Auction Preferred Shares (APS) with a liquidation value of $190,000,000 in
exchange for VKA's net assets. The shares of VKA were converted into Trust
shares at a ratio of 0.984721 to 1 and 1 to 1, for common shares and APS,
respectively. Net unrealized appreciation of VKA as of January 27, 2006 was
$26,207,937. The Trust assumed VKA's book to tax accretion difference, which
resulted in a $652,090 increase to accumulated undistributed net investment
income and a corresponding decrease to net unrealized appreciation. Combined net
assets applicable to common shares on the day of the reorganization were
$557,410,249 and combined net assets including preferred shares were
$897,410,249. Included in these net assets was a capital loss carryforward of
$577,984, gains or losses of $287,664 recognized for tax purposes on open
futures transactions at January 27, 2006, and deferred losses relating to wash
sales transactions of $84,376 which are included with accumulated net realized
loss of which all can be utilized by the acquiring Trust. Additionally, included
in these net assets was a deferred compensation and retirement plan balance of
$357,767 which is included with accumulated undistributed net investment income.
31
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2007 (UNAUDITED) continued
4. INVESTMENT TRANSACTIONS
During the period, the cost of purchases and proceeds from sales of investments,
excluding short-term investments, were $123,058,628 and $50,541,351,
respectively.
5. DERIVATIVE FINANCIAL INSTRUMENTS
A derivative financial instrument in very general terms refers to a security
whose value is "derived" from the value of an underlying asset, reference rate
or index.
In order to seek to manage the interest rate exposure of the Trust's
portfolio in a changing interest rate environment, the Trust may purchase or
sell financial futures contracts or engage in transactions involving interest
rate swaps, caps, floors or collars. The Trust expects to enter into these
transactions primarily as a hedge against anticipated interest rate or fixed
income market changes, for duration management or for risk management purposes,
but may also enter into these transactions to generate additional income. All of
the Trust's portfolio holdings, including derivative instruments, are marked to
market each day with the change in value reflected in the unrealized
appreciation/depreciation. Upon disposition, a realized gain or loss is
recognized accordingly, except when taking delivery of a security underlying a
futures contract. In this instance, the recognition of gain or loss is postponed
until the disposal of the security underlying the futures contract.
Summarized below are the specific types of derivative financial instruments
used by the Trust.
A. FUTURES CONTRACTS A futures contract is an agreement involving the delivery
of a particular asset on a specified future date at an agreed upon price. The
Trust generally invests in exchange traded futures contracts on U.S. Treasury
securities and typically closes the contract prior to the delivery date. These
contracts are generally used to manage the Trust's effective maturity and
duration. Upon entering into futures contracts, the Trust maintains an amount of
cash or liquid securities with a value equal to a percentage of the contract
amount with either a futures commission merchant pursuant to the rules and
regulations promulgated under the 1940 Act, as amended, or with its custodian in
an account in the future broker's name. This amount is known as initial margin.
During the period the futures contract is open, payments are received from or
made to the broker based upon changes in the value of the contract (the
variation margin). The risk of loss associated with a futures contract is in
excess of the variation margin reflected on the Statement of Assets and
Liabilities.
Transactions in futures contracts for the six months ended April 30, 2007
were as follows:
CONTRACTS
Outstanding at October 31, 2006............................. 826
Futures Opened.............................................. 3,726
Futures Closed.............................................. (3,464)
------
Outstanding at April 30, 2007............................... 1,088
======
B. INVERSE FLOATING RATE INVESTMENTS The Trust may invest a portion of its
assets in inverse floating rate instruments, either through outright purchases
of inverse floating rate securities or through the transfer of bonds to a dealer
trust in exchange for cash and residual interests
32
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2007 (UNAUDITED) continued
in the dealer trust. These investments are typically used by the Trust in
seeking to enhance the yield of the portfolio. These instruments typically
involve greater risks than a fixed rate municipal bond. In particular, these
instruments are acquired through leverage or may have leverage embedded in them
and therefore involve many of the risks associated with leverage. Leverage is a
speculative technique that may expose the Trust to greater risk and increased
costs. Leverage may cause the Trust's net asset value to be more volatile than
if it had not been leveraged because leverage tends to magnify the effect of any
increases or decreases in the value of the Trust's portfolio securities. The use
of leverage may also cause the Trust to liquidate portfolio positions when it
may not be advantageous to do so in order to satisfy its obligations with
respect to inverse floating rate instruments.
C. INTEREST RATE SWAPS The Trust may enter into forward interest rate swap
transactions intended to help the Trust manage its overall interest rate
sensitivity, either shorter or longer, generally to more closely align the
Trust's interest rate sensitivity with that of the broader municipal market.
Forward interest rate swap transactions involve the Trust's agreement with a
counterparty to pay, in the future, a fixed or variable payment in exchange for
the counterparty paying the Trust a variable or fixed rate payment, the accruals
for which would begin at a specified date in the future (the "effective date").
The amount of the payment obligation is based on the notional amount of the
forward swap contract and the termination date of the swap (which is akin to a
bond's maturity). The value of the Trust's swap commitment would increase or
decrease based primarily on the extent to which long-term interest rates for
bonds having a maturity of the swap's termination date increases or decreases.
The Trust may terminate a swap contract prior to the effective date, at which
point a realized gain or loss is recognized. When a forward contract is
terminated, it ordinarily does not involve the delivery of securities or other
underlying assets or principal, but rather is settled in cash on a net basis.
The Trust intends, but is not obligated, to terminate its forward swaps before
the effective date. Accordingly, the risk of loss with respect to the swap
counterparty on such transactions is limited to the credit risk associated with
a counter party failing to honor its commitment to pay any realized gain to the
Trust upon termination. To reduce such credit risk, all counterparties are
required to pledge collateral daily (based on the daily valuation of each swap)
on behalf of the Trust with a value approximately equal to the amount of any
unrealized gain. Reciprocally, when the trust has an unrealized loss on a swap
contract, the Trust 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.
6. PREFERRED SHARES
The Trust has outstanding 13,600 APS. Series A and B contain 3,000 shares,
Series C, D and E contain 2,000 shares, and Series F contains 1,600 shares.
Dividends are cumulative and the dividend rate on each series is generally reset
every 28 days through an auction process. The average rate in effect on April
30, 2007 was 3.771%. During the six months ended April 30, 2007, the rates
ranged from 3.300% to 3.900%.
The Trust pays annual fees equivalent to .25% of the preferred share
liquidation value for the remarketing efforts associated with the preferred
auctions. These fees are included as a component of "Preferred Share
Maintenance" expense on the Statement of Operations.
33
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2007 (UNAUDITED) continued
The APS are redeemable at the option of the Trust in whole or in part at the
liquidation value of $25,000 per share plus accumulated and unpaid dividends.
The Trust is subject to certain asset coverage tests and the APS are subject to
mandatory redemption if the tests are not met.
7. INDEMNIFICATIONS
The Trust enters into contracts that contain a variety of indemnifications. The
Trust's maximum exposure under these arrangements is unknown. However, the Trust
has not had prior claims or losses pursuant to these contracts and expects the
risk of loss to be remote.
8. ACCOUNTING PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board (FASB) issued
Interpretation 48, Accounting for Uncertainty in Income Taxes--an interpretation
of FASB Statement 109 (FIN 48). FIN 48 clarifies the accounting for income taxes
by prescribing the minimum recognition threshold a tax position must meet before
being recognized in the financial statements. FIN 48 is effective for the fiscal
years beginning after December 15, 2006 and is to be applied to all open tax
years as of the effective date. Recent SEC guidance allows implementing FIN 48
in the trust NAV calculations as late as the trust's last NAV calculation in the
first required financial statement period. As a result, the Trust will
incorporate FIN 48 in its semiannual report on April 30, 2008. The impact to the
Trust's financial statements, if any, is currently being assessed.
In addition, 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. Management is currently evaluating the impact the
adoption of SFAS 157 will have on the Trust's financial statement disclosures.
34
VAN KAMPEN MUNICIPAL OPPORTUNITY TRUST
BOARD OF TRUSTEES, OFFICERS AND IMPORTANT ADDRESSES
BOARD OF TRUSTEES
DAVID C. ARCH
JERRY D. CHOATE
ROD DAMMEYER
LINDA HUTTON HEAGY
R. CRAIG KENNEDY
HOWARD J KERR
JACK E. NELSON
HUGO F. SONNENSCHEIN
WAYNE W. WHALEN* - Chairman
SUZANNE H. WOOLSEY
OFFICERS
RONALD E. ROBISON
President and Principal Executive Officer
DENNIS SHEA
Vice President
J. DAVID GERMANY
Vice President
AMY R. DOBERMAN
Vice President
STEFANIE V. CHANG
Vice President and Secretary
JOHN L. SULLIVAN
Chief Compliance Officer
JAMES W. GARRETT
Chief Financial Officer and Treasurer
INVESTMENT ADVISER
VAN KAMPEN ASSET MANAGEMENT
1221 Avenue of the Americas
New York, New York 10020
CUSTODIAN
STATE STREET BANK
AND TRUST COMPANY
One Lincoln Street
Boston, Massachusetts 02111
TRANSFER AGENT
COMPUTERSHARE TRUST COMPANY, N.A.
c/o Computershare Investor Services
P.O. Box 43011
Providence, Rhode Island 02940-3011
LEGAL COUNSEL
SKADDEN, ARPS, SLATE,
MEAGHER & FLOM LLP
333 West Wacker Drive
Chicago, Illinois 60606
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
DELOITTE & TOUCHE LLP
111 South Wacker Drive
Chicago, Illinois 60606-4301
* "Interested persons" of the Trust, as defined in the Investment Company Act
of 1940, as amended.
35
Van Kampen Municipal Opportunity Trust
An Important Notice Concerning Our U.S. Privacy Policy
We are required by federal law to provide you with a copy of our Privacy
Policy annually.
The following Policy applies to current and former individual clients of Van
Kampen Investments Inc., Van Kampen Asset Management, Van Kampen Advisors
Inc., Van Kampen Funds Inc., Van Kampen Investor Services Inc. and Van
Kampen Exchange Corp., as well as current and former individual investors in
Van Kampen mutual funds, unit investment trusts, and related companies.
This Policy is not applicable to partnerships, corporations, trusts or other
non-individual clients or account holders, nor is this Policy applicable to
individuals who are either beneficiaries of a trust for which we serve as
trustee or participants in an employee benefit plan administered or advised
by us. This Policy is, however, applicable to individuals who select us to
be a custodian of securities or assets in individual retirement accounts,
401(k) accounts, 529 Educational Savings Accounts, accounts subject to the
Uniform Gifts to Minors Act, or similar accounts.
Please note that we may amend this Policy at any time, and will inform you
of any changes to this Policy as required by law.
WE RESPECT YOUR PRIVACY
We appreciate that you have provided us with your personal financial
information. We strive to maintain the privacy of such information while we
help you achieve your financial objectives. This Policy describes what
non-public personal information we collect about you, why we collect it, and
when we may share it with others.
We hope this Policy will help you understand how we collect and share
non-public personal information that we gather about you. Throughout this
Policy, we refer to the non-public information that personally identifies
you or your accounts as "personal information."
1. WHAT PERSONAL INFORMATION DO WE COLLECT ABOUT YOU?
To serve you better and manage our business, it is important that we collect
and maintain accurate information about you. We may obtain this information
from applications and other forms you submit to us, from your dealings with
us, from consumer reporting agencies, from our Web sites and from third
parties and other sources.
(continued on next page)
Van Kampen Municipal Opportunity Trust
An Important Notice Concerning Our U.S. Privacy Policy continued
For example:
-- We may collect information such as your name, address, e-mail address,
telephone/fax numbers, assets, income and investment objectives through
applications and other forms you submit to us.
-- We may obtain information about account balances, your use of
account(s) and the types of products and services you prefer to receive
from us through your dealings and transactions with us and other
sources.
-- We may obtain information about your creditworthiness and credit
history from consumer reporting agencies.
-- We may collect background information from and through third-party
vendors to verify representations you have made and to comply with
various regulatory requirements.
-- If you interact with us through our public and private Web sites, we
may collect information that you provide directly through online
communications (such as an e-mail address). We may also collect
information about your Internet service provider, your domain name,
your computer's operating system and Web browser, your use of our Web
sites and your product and service preferences, through the use of
"cookies." "Cookies" recognize your computer each time you return to
one of our sites, and help to improve our sites' content and
personalize your experience on our sites by, for example, suggesting
offerings that may interest you. Please consult the Terms of Use of
these sites for more details on our use of cookies.
2. WHEN DO WE DISCLOSE PERSONAL INFORMATION WE COLLECT ABOUT YOU?
To provide you with the products and services you request, to serve you
better and to manage our business, we may disclose personal information we
collect about you to our affiliated companies and to non-affiliated third
parties as required or permitted by law.
A. INFORMATION WE DISCLOSE TO OUR AFFILIATED COMPANIES. We do not disclose
personal information that we collect about you to our affiliated companies
except to enable them to provide services on our behalf or as otherwise
required or permitted by law.
B. INFORMATION WE DISCLOSE TO THIRD PARTIES. We do not disclose personal
information that we collect about you to non-affiliated third parties except
to enable them to provide services on our behalf, to perform joint marketing
agreements with
(continued on back)
Van Kampen Municipal Opportunity Trust
An Important Notice Concerning Our U.S. Privacy Policy continued
other financial institutions, or as otherwise required or permitted by law.
For example, some instances where we may disclose information about you to
non-affiliated third parties include: for servicing and processing
transactions, to offer our own products and services, to protect against
fraud, for institutional risk control, to respond to judicial process or to
perform services on our behalf. When we share personal information with
these companies, they are required to limit their use of personal
information to the particular purpose for which it was shared and they are
not allowed to share personal information with others except to fulfill that
limited purpose.
3. HOW DO WE PROTECT THE SECURITY AND CONFIDENTIALITY OF PERSONAL
INFORMATION WE COLLECT ABOUT YOU?
We maintain physical, electronic and procedural security measures to help
safeguard the personal information we collect about you. We have internal
policies governing the proper handling of client information. Third parties
that provide support or marketing services on our behalf may also receive
personal information, and we require them to adhere to confidentiality
standards with respect to such information.
Van Kampen Funds Inc.
1 Parkview Plaza, Suite 100
P.O. Box 5555
Oakbrook Terrace, IL 60181-5555
www.vankampen.com
Copyright (C)2007 Van Kampen Funds Inc.
All rights reserved. Member NASD/SIPC.
VMOSAR 6/07
(VAN KAMPEN INVESTMENTS LOGO) IU07-01478P-Y04/07
Item 2. Code of Ethics.
Not applicable for semi-annual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable for semi-annual reports.
Item 6. Schedule of Investments.
Please refer to Item #1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable for semi-annual reports.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable for semi-annual reports.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
TOTAL NUMBER OF MAXIMUM NUMBER
SHARES PURCHASED AS OF SHARES THAT MAY
PART OF PUBLICLY YET BE PURCHASED
TOTAL NUMBER OF AVERAGE PRICE ANNOUNCED PLANS UNDER THE PLANS OR
PERIOD* SHARES PURCHASED PAID PER SHARE OR PROGRAMS PROGRAMS
-------- ---------------- -------------- ------------------- ------------------
November -- -- -- --
December -- -- -- --
January -- -- -- --
February -- -- -- 3,417,254
March 37,300 15.61 37,300 3,379,954
April 6,700 15.59 6,700 3,373,254
* The Share Repurchase Program commenced on 2/28/2007.
The Trust expects to continue to repurchase its outstanding shares at such time
and in such amounts as it believes will further the accomplishment of the
foregoing objectives, subject to review by the Board of Trustees.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. Controls and Procedures
(a) The Trust's principal executive officer and principal financial officer have
concluded that the Trust's disclosure controls and procedures are sufficient to
ensure that information required to be disclosed by the Trust in this Form
N-CSRS was recorded, processed, summarized and reported within the time periods
specified in the Securities and Exchange Commission's rules and forms, based
upon such officers' evaluation of these controls and procedures as of a date
within 90 days of the filing date of the report.
(b) There were no changes in the registrant's internal control over financial
reporting that occurred during the second fiscal quarter of the period covered
by this report that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting.
Item 12. Exhibits.
(1) Code of Ethics - Not applicable for semi-annual reports.
(2)(a) A certification for the Principal Executive Officer of the registrant is
attached hereto as part of EX-99.CERT.
(2)(b) A certification for the Principal Financial Officer of the registrant is
attached hereto as part of EX-99.CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Van Kampen Municipal
Opportunity Trust
By: /s/ Ronald E. Robison
---------------------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: June 21, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed by the following
persons on behalf of the registrant and in the capacities and on the dates
indicated.
By: /s/ Ronald E. Robison
---------------------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: June 21, 2007
By: /s/ Stuart N. Schuldt
---------------------------------
Name: Stuart N. Schuldt
Title: Principal Financial Officer
Date: June 21, 2007