N-CSRS
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 811-22043
Van Kampen Dynamic Credit Opportunities Fund
(Exact name of registrant as specified in charter)
522 Fifth Avenue, New York, New York 10036
(Address of principal executive offices) (Zip code)
Edward C. Wood III
522 Fifth Avenue, New York, New York 10036
(Name and address of agent for service)
Registrants telephone number, including area code: 212-762-4000
Date of fiscal year end: 7/31
Date of reporting period: 1/31/09
Item 1. Reports to Shareholders.
The
Funds 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, youll learn about how your investment in
Van Kampen Dynamic Credit Opportunities Fund performed
during the semiannual period. The portfolio management team will
provide an overview of the market conditions and discuss some of
the factors that affected investment performance during the
reporting period. In addition, this report includes the
funds financial statements and a list of fund investments
as of January 31, 2009.
Market forecasts provided in this report may not necessarily
come to pass. There is no assurance that the fund will achieve
its investment objective. The fund is subject to market risk,
which is the possibility that the market values of securities
owned by the fund will decline and that the value of the fund
shares may therefore be less than what you paid for them.
Accordingly, you can lose money investing in this fund.
Please see the prospectus for more complete information on
investment risks.
An investment in senior loans is subject to certain risks
such as loan defaults and illiquidity due to insufficient
collateral backing.
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NOT FDIC INSURED
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OFFER NO BANK GUARANTEE
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MAY LOSE VALUE
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NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
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NOT A DEPOSIT
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Performance
Summary as
of 1/31/09
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Dynamic
Credit Opportunities Fund
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Symbol:
VTA
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Average Annual
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Based on
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Based on
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Total
Returns
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NAV
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Market
Price
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Since Inception (6/26/07)
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33.31
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%
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37.47
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%
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1-year
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43.39
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43.30
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6-month
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42.51
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35.90
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Performance data
quoted represents past performance, which is no guarantee of
future results, and current performance may be lower or higher
than the figures shown. For the most recent month-end
performance figures, please visit vankampen.com or speak with
your financial advisor. Investment returns and principal value
will fluctuate and fund shares, when redeemed, may be worth more
or less than their original cost.
The NAV per share is
determined by dividing the value of the funds portfolio
securities, cash and other assets, less all liabilities, 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 fund 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 funds dividend
reinvestment plan, and sale of all shares at the end of the
period. Periods of less than one year are not annualized.
1
Fund Report
For the six-month
period ended January 31, 2009
Market
Conditions
The six-month period under review was an unprecedented period in
the history of the financial markets. Following the government
takeover of Fannie Mae and Freddie Mac in early September and
the bankruptcy of Lehman Brothers shortly thereafter, the credit
crisis reached new heights as investor confidence plummeted and
the credit markets seized. A massive flight to quality ensued as
investors shunned risky assets in favor of the relative safety
of U.S. Treasury securities. As a result, all other sectors
of the market experienced significant price deterioration, a
trend that largely continued throughout the end of the year.
Concerns about the economy exacerbated the market sell-off as
various economic indicators continued to weaken, further
undermining investor confidence. In December 2008, it was
confirmed that the economy was in recession, and had in fact
been since the prior December.
The government took substantial steps by implementing various
fiscal and monetary policies designed to be supportive, yet by
the end of January 2009, their efforts had done little to calm
the markets or boost the economy. With unemployment still on the
rise and consumer spending and home prices declining further,
the outlook for the rest of the year appeared negative. It is
possible, however, that further government intervention to
stabilize the financial industry and stem home foreclosures
could ultimately help stimulate the economy.
The senior loan market suffered in the risk-averse environment
as loan demand declined and funds began selling loans in
preparation for year-end redemptions. Funds also sold as part of
the process of reducing leverage in order to remain in
compliance with leverage regulations. As a result, the fourth
quarter of 2008 was the worst quarter on record for the senior
loan asset class, with loan values declining by
25.1 percent (as measured by the S&P/LSTA Leveraged
Loan Index), far surpassing the third-quarter decline of
8.6 percent. For calendar year 2008, senior loans were down
34.6 percent.
As of year-end, the technical demand/supply picture had begun to
improve. Funds appeared to be through with most of their forced
selling and buyers began to emerge, which helped to stabilize
loan prices. In January 2009, the loan market rallied strongly,
posting a record one-month gain of 5.2 percent.
Nonetheless, the market remained volatile at month-end and
credit fundamentals were still deteriorating. Additionally,
default rates reached 5 percent and most market observers
expect this trend to continue. Given the senior secured nature
of loans, however, we still find current yields compelling.
2
Performance
Analysis
The Funds 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 Funds
portfolio securities, cash and other assets, less all
liabilities, 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. For the six months ended
January 31, 2009, the Fund returned
−35.90 percent on a market price basis and
−42.51 percent on an NAV basis.
Total return for
the six-month period ended January 31, 2009
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Based
on NAV
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Based
on Market Price
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42.51
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%
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35.90
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%
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Performance data
quoted represents past performance, which is no guarantee of
future results, and current performance may be lower or higher
than the figures shown. Investment return, net asset value and
common share market price will fluctuate and Fund shares, when
sold, may be worth more or less than their original cost. See
Performance Summary for additional performance
information.
Over the course of the period we positioned the portfolio
defensively, generally avoiding sectors or industries that we
believed were vulnerable to cyclical economic downturns. For
example, the Fund remained underweighted in the auto, airline
and retail industries because of their susceptibility to the
weakening economy. As of the end of the reporting period,
approximately 44 percent of the Funds assets were invested
internationally, primarily in Europe, and continued to be
managed by Van Kampens subadviser, Avenue Capital.
This exposure to non-dollar assets was entirely hedged into
U.S. dollars, effectively eliminating currency risk in the
portfolio.
The Fund used a modest amount of leverage during the period in
an effort to enhance the portfolios yield. This involves
borrowing at a floating short-term rate and reinvesting the
proceeds at a higher rate. Unlike other fixed-income asset
classes, using leverage in conjunction with senior loans does
not involve the same degree of risk from rising short-term
interest rates since the income from senior loans, assuming no
defaults, adjusts to changes in interest rates, as do the rates
which determine the Funds borrowing costs. (Similarly,
should short-term rates fall, borrowing costs would also
decline.) While we believe the use of leverage adds value for
shareholders over a full cycle, it has been a drag on
performance in the short term. Because, in our view, the recent
market volatility has been driven as much by technical factors
as by changes in underlying fundamentals, we have not materially
altered the use of leverage in the Fund as we believe it is
difficult to time technical events in the market.
Therefore, portfolio composition continues to be driven by
fundamental credit research. As of the end of the period, the
Funds largest sector weightings were packaging,
publishing, gaming and cable.
3
Although it has been a difficult period, we believe it has
created attractive investment opportunities. We believe the
value in the senior loan market remains compelling and because
we are able to dynamically adjust the portfolio investment mix
to take advantage of opportunities as they arise, we believe we
can deliver competitive returns to our investors over the
economic cycle.
The Funds procedure for reinvesting all dividends and
distributions in common shares is through purchases in the open
market. This method helps support the market value of the
Funds shares. In addition, we would like to remind you
that the Trustees have approved a procedure whereby the Fund
may, when appropriate, purchase shares in the open market or in
privately negotiated transactions at a price not above market
value or net asset value, whichever is lower at the time of
purchase.
There is no guarantee that any sectors mentioned will
continue to perform as discussed herein or that securities in
such sectors will be held by the Fund in the future.
4
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Summary
of Investments by Industry Classification as of 1/31/09
(Unaudited)
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Containers, Packaging & Glass
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7.3
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%
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Printing & Publishing
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6.9
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Hotels, Motels, Inns & Gaming
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6.6
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BroadcastingCable
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6.4
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TelecommunicationsEquipment & Services
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5.6
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Beverage, Food & Tobacco
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5.5
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Buildings & Real Estate
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4.9
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Chemicals, Plastics & Rubber
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4.4
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TransportationCargo
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4.1
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Non-Durable Consumer Products
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4.0
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Healthcare
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3.8
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Finance
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2.9
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Entertainment & Leisure
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2.9
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Electronics
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2.6
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Mining, Steel, Iron & Non-Precious Metals
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2.3
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TelecommunicationsWireless
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2.2
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Insurance
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2.0
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RetailSpecialty
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1.5
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Automotive
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1.5
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RetailStores
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1.4
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Utilities
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1.3
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Business Equipment & Services
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1.3
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BroadcastingRadio
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1.2
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Paper & Forest Products
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1.1
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TelecommunicationsLocal Exchange Carriers
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1.1
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BroadcastingTelevision
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1.0
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Construction Material
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0.9
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Machinery
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0.9
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Health & Beauty
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0.9
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Aerospace/Defense
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0.8
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BroadcastingDiversified
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0.8
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RetailOil & Gas
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0.8
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Medical Products & Services
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0.8
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Home & Office Furnishings, Housewares &
Durable Consumer Produ
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0.7
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Education & Child Care
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0.6
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Natural Resources
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0.6
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Textiles & Leather
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0.5
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Restaurants & Food Service
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0.4
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Farming & Agriculture
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0.4
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Ecological
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0.3
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Diversified Manufacturing
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0.3
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Banking
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0.2
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Pharmaceuticals
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0.1
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Total Long-Term Investments
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95.8
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Total Short-Term Investments
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4.2
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Total Investments
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100.0
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%
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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. Summary of investments by industry classification
percentages are 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.
5
Portfolio
Management
Van Kampen Dynamic Credit Opportunities Fund is managed by
members of the Advisers Senior Loan Group, which currently
includes Gerard Fogarty and Jeffrey Scott, each a Vice President
of the Adviser, and Philip Yarrow, an Executive Director of the
Adviser. All team members are responsible for the day-to-day
management of the Advisers portion of Funds
portfolio.
Mr. Fogarty joined the Adviser in 2007 and began managing
the Fund in July 2008. Mr. Fogarty has approximately
11 years of investment experience. From 2003 to 2007 and
prior to joining the Adviser, Mr. Fogarty was employed by
JPMorgan and held a number of positions including Director in
the financial institutions group, and, most recently as a Credit
Executive in the commercial real estate group. Prior to joining
JPMorgan, Mr. Fogarty was employed as an Associate in the
financial institutions group at Bank of America.
Mr. Fogarty received a B.S. from Indiana University and an
M.B.A. from the University of Chicago Graduate School of
Business.
Mr. Scott joined the Adviser in 2005 and began managing the
Fund in July 2008. Mr. Scott has approximately
18 years of investment industry experience. Prior to
joining the Adviser, Mr. Scott was employed by State Farm
Insurance Companies where he served as an Assistant Vice
President in the Mutual Fund Group responsible for product
development and strategy as well as a Regional Vice President
for Sales for the Financial Services Division. Mr. Scott
received a B.S. from Elmhurst College and an M.B.A. from the
University of Chicago Graduate School of Business.
Mr. Scott also holds the Chartered Financial Analyst
designation.
Mr. Yarrow joined the Adviser in 2005 and began managing
the Fund in June 2007. Mr. Yarrow has over 13 years of
investment experience. Prior to joining the Adviser,
Mr. Yarrow was a credit analyst and a portfolio manager at
Bank One/JPMorgan. Mr. Yarrow received a bachelors
degree in mathematics and economics from the University of
Nottingham and an M.B.A. in finance from Northwestern
University. Mr. Yarrow also holds the Chartered Financial
Analyst designation.
The Fund is also managed by Avenue Europe International
Management, L.P., the Funds investment subadviser (the
Subadviser). Richard Furst, Senior Portfolio Manager
of the Subadviser, and Raul Ramirez, a Portfolio Manager of the
Subadviser, are responsible for the day-to-day management of the
Subadvisers portion of Funds portfolio.
Mr. Furst has been associated with the Subadviser in an
investment management capacity since 2004. Prior to joining the
Subadviser, he was a portfolio manager with Moore Capital Group,
managing approximately $1 billion of U.S. and European
distressed and high yield securities. Prior to that, he was a
Managing Director and Head of
6
U.S. Special Situations Trading group for Bank of America,
managing $300 million in capital. Previously,
Mr. Furst was a Vice President in the High Yield and
Distressed Trading and Research department of Salomon Brothers,
Inc., after serving as an Analyst in their Mergers,
Acquisitions, and Restructuring group.
Mr. Ramirez has been associated with the Subadviser in an
investment management capacity since 2006. Prior to joining the
Subadviser, Mr. Ramirez was a portfolio manager based in
London at Goldentree Asset Management UK, focused on European
investments. Previously, Mr. Ramirez was Executive Director
of the Special Situations Group at Morgan Stanley, focused on
the European energy sector. While at Morgan Stanley,
Mr. Ramirez was also the Head of European Distressed
Research.
7
For More
Information About Portfolio Holdings
Each Van Kampen Fund provides a complete schedule of
portfolio holdings in its semiannual and annual reports within
60 days of the end of the funds second and fourth
fiscal quarters. The semiannual reports and the annual reports
are filed electronically with the Securities and Exchange
Commission (SEC) on
Form N-CSRS
and
Form N-CSR,
respectively. Van Kampen also delivers the semiannual and
annual reports to fund shareholders, and makes these reports
available on its public Web site, www.vankampen.com. In addition
to the semiannual and annual reports that Van Kampen
delivers to shareholders and makes available through the
Van Kampen public Web site, each fund files a complete
schedule of portfolio holdings with the SEC for the funds
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 SECs Web site,
http://www.sec.gov.
You may also review and copy them at the SECs Public
Reference Room in Washington, D.C. Information on the operation
of the SECs 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 SECs
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 funds fiscal quarter filings by
contacting Van Kampen Client Relations at
(800) 341-2929.
Proxy Voting
Policy and Procedures and Proxy Voting Record
You may obtain a copy of the Funds 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 Commissions Web
site at
http://www.sec.gov.
You may obtain information regarding how the Fund voted proxies
relating to portfolio securities during the most recent
twelve-month period ended June 30 without charge by visiting our
Web site at www.vankampen.com. This information is also
available on the Securities and Exchange Commissions Web
site at
http://www.sec.gov.
8
Van Kampen
Dynamic Credit Opportunities Fund
Portfolio of
Investments n January 31,
2009 (Unaudited)
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Principal
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Amount
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Stated
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(000)
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Borrower
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Coupon
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Maturity*
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Value
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Variable Rate Senior Loan
Interests** 105.4%
Aerospace/Defense 1.2%
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$
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4,383
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DeCrane Aircraft Holdings, Inc., Term Loan
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3.18
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%
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02/21/13
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$
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2,870,620
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2,241
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IAP Worldwide Services, Inc., Term Loan (a)
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8.25
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12/30/12
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1,213,769
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1,580
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Sequa Corp., Term Loan
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3.64 to 3.69
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12/03/14
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989,698
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3,000
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Wesco Aircraft Hardware Corp., Term Loan
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6.16
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03/28/14
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2,115,000
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7,189,087
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Automotive 2.1%
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18,890
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Ford Motor Co., Term Loan
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5.00
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12/16/13
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6,882,868
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4,476
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Metokote Corp., Term Loan
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3.36 to 5.05
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11/27/11
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2,797,501
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533
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Navistar International Corp., Revolving Credit Agreement
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3.66 to 5.90
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01/19/12
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381,333
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1,467
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Navistar International Corp., Term Loan
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3.66
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01/19/12
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1,048,667
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1,007
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Precision Partners, Inc., Term Loan
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8.25
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08/26/13
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594,231
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3,205
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Textron Fastening Systems, Term Loan
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4.96
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08/11/13
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1,442,197
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13,146,797
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Banking 0.3%
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3,966
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Dollar Financial Corp., Term Loan
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4.21
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10/30/12
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1,983,222
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Beverage, Food & Tobacco 7.9%
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10,036
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Birds Eye Foods Investments, Inc., Term Loan (a)
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6.16
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07/11/12
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6,774,029
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4,763
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Coleman Natural Foods, LLC, Term Loan
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7.63 to 8.31
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08/22/12
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3,429,252
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2,127
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Culligan International Co., Term Loan
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2.66 to 3.72
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11/24/12
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1,260,426
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6,173
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Dole Food Co. Inc., Term Loan
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2.38 to 4.25
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04/12/13
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5,185,253
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10,000
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DSW Holdings, Inc., Term Loan
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4.33
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03/07/12
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6,500,000
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12,000
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Farleys & Sathers Candy Co., Inc., Term Loan
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8.41 to 8.43
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03/24/11
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10,140,000
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|
|
1,276
|
|
|
Foodvest Ltd. AB, Term Loan (Sweden)
|
|
|
6.66
|
|
|
03/23/16
|
|
|
1,410,633
|
|
|
5,000
|
|
|
FSB Holdings, Inc., Term Loan
|
|
|
7.25
|
|
|
03/29/14
|
|
|
1,875,000
|
|
|
1,977
|
|
|
Iglo Birds Eye, Term Loan (United Kingdom)
|
|
|
4.02 to 4.40
|
|
|
12/31/14 to 12/31/15
|
|
|
1,959,056
|
|
|
3,000
|
|
|
LJVH Holdings, Inc., Term Loan (Canada)
|
|
|
6.96
|
|
|
01/19/15
|
|
|
1,350,000
|
|
9
See Notes to Financial
Statements
Van Kampen
Dynamic Credit Opportunities Fund
Portfolio of
Investments n January 31,
2009
(Unaudited) continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
|
|
|
|
Amount
|
|
|
|
|
|
Stated
|
|
|
(000)
|
|
Borrower
|
|
Coupon
|
|
Maturity*
|
|
Value
|
|
|
|
|
|
|
Beverage, Food & Tobacco (Continued)
|
|
3,594
|
|
|
Panrico, Inc., Term Loan (Spain)
|
|
|
7.27 to 7.64
|
%
|
|
05/31/14 to 05/31/15
|
|
$
|
2,986,367
|
|
|
7,109
|
|
|
Pinnacle Foods Finance, LLC, Term Loan
|
|
|
3.20
|
|
|
04/02/14
|
|
|
5,610,551
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
48,480,567
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BroadcastingCable 5.4%
|
|
5,000
|
|
|
Charter Communications, LLC, Term Loan
|
|
|
3.96
|
|
|
09/06/14
|
|
|
2,890,000
|
|
|
12,347
|
|
|
CSC Holdings Inc., Term Loan
|
|
|
1.33
|
|
|
02/24/12
|
|
|
11,272,615
|
|
|
17,600
|
|
|
Kabel Baden-Wuerttemburg, Term Loan (Germany)
|
|
|
5.83 to 6.33
|
|
|
06/09/14 to 06/09/15
|
|
|
15,690,020
|
|
|
4,168
|
|
|
Knology, Inc., Term Loan
|
|
|
2.70
|
|
|
06/30/12
|
|
|
3,021,886
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32,874,521
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BroadcastingDiversified 1.1%
|
|
7,875
|
|
|
Alpha Topco Ltd., Term Loan (United Kingdom)
|
|
|
5.31
|
|
|
12/31/13 to 06/30/14
|
|
|
3,888,703
|
|
|
956
|
|
|
Cumulus Media, Inc., Term Loan
|
|
|
2.14
|
|
|
06/11/14
|
|
|
339,228
|
|
|
3,557
|
|
|
NEP II, Inc., Term Loan
|
|
|
2.66
|
|
|
02/16/14
|
|
|
2,668,106
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,896,037
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BroadcastingRadio 1.8%
|
|
1,872
|
|
|
CMP KC, LLC, Term Loan (c)
|
|
|
4.38 to 4.44
|
|
|
05/03/11
|
|
|
371,113
|
|
|
5,084
|
|
|
CMP Susquehanna Corp., Term Loan
|
|
|
2.44 to 2.45
|
|
|
05/05/13
|
|
|
1,652,364
|
|
|
7,679
|
|
|
Emmis Operating Co., Term Loan
|
|
|
2.41 to 3.47
|
|
|
11/01/13
|
|
|
3,378,770
|
|
|
1,864
|
|
|
Multicultural Radio Broadcasting, Inc., Term Loan
|
|
|
3.19
|
|
|
12/18/12
|
|
|
1,351,083
|
|
|
1,264
|
|
|
NextMedia Operating, Inc., Term Loan
|
|
|
5.12 to 5.17
|
|
|
11/15/12
|
|
|
660,385
|
|
|
4,534
|
|
|
NextMedia Operating, Inc., Term Loan (a)
|
|
|
8.46
|
|
|
11/15/13
|
|
|
1,983,814
|
|
|
3,954
|
|
|
Spanish Broadcasting Systems, Inc., Term Loan
|
|
|
3.21
|
|
|
06/11/12
|
|
|
1,522,216
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,919,745
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BroadcastingTelevision 1.4%
|
|
2,993
|
|
|
FoxCo Acquisition, LLC, Term Loan
|
|
|
7.25
|
|
|
07/14/15
|
|
|
1,645,875
|
|
|
642
|
|
|
High Plains Broadcasting Operating Co., LLC, Term Loan
|
|
|
8.00
|
|
|
09/14/16
|
|
|
276,208
|
|
10
See Notes to Financial
Statements
Van Kampen
Dynamic Credit Opportunities Fund
Portfolio of
Investments n January 31,
2009
(Unaudited) continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
|
|
|
|
Amount
|
|
|
|
|
|
Stated
|
|
|
(000)
|
|
Borrower
|
|
Coupon
|
|
Maturity*
|
|
Value
|
|
|
|
|
|
|
BroadcastingTelevision (Continued)
|
$
|
2,428
|
|
|
Newport Television, LLC, Term Loan
|
|
|
8.00
|
%
|
|
09/14/16
|
|
$
|
1,044,027
|
|
|
11,646
|
|
|
NV Broadcasting, LLC, Term Loan
|
|
|
5.22 to 8.72
|
|
|
11/01/13 to 11/01/14
|
|
|
3,150,104
|
|
|
3,842
|
|
|
Univision Communications, Inc., Term Loan
|
|
|
2.66 to 2.91
|
|
|
03/30/09 to 09/29/14
|
|
|
2,590,830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,707,044
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Buildings & Real Estate 3.3%
|
|
2,000
|
|
|
El Ad IDB Las Vegas, LLC, Term Loan
|
|
|
4.39
|
|
|
02/10/09
|
|
|
1,550,000
|
|
|
7,479
|
|
|
Ginn LA CS Borrower, LLC, Term Loan (d)
|
|
|
8.50 to 12.50
|
|
|
06/08/11 to 06/08/12
|
|
|
455,785
|
|
|
417
|
|
|
KAG Property, LLC, Term Loan (c)
|
|
|
6.45
|
|
|
09/23/09
|
|
|
368,612
|
|
|
3,908
|
|
|
Kuilima Resort Co., Term Loan (a) (c) (d)
|
|
|
17.48
|
|
|
09/30/11
|
|
|
0
|
|
|
97
|
|
|
Kuilima Resort Co., Term Loan (a) (c) (d) (e)
|
|
|
25.41
|
|
|
10/01/08
|
|
|
0
|
|
|
5,000
|
|
|
Kyle Acquisition Group, LLC, Term Loan (d)
|
|
|
5.75 to 7.75
|
|
|
07/20/09 to 07/20/11
|
|
|
612,500
|
|
|
19,236
|
|
|
Lake at Las Vegas Joint Venture, LLC, Term
Loan (a) (c) (d) (f)
|
|
|
9.91 to 16.10
|
|
|
08/20/09 to 06/20/12
|
|
|
3,946,896
|
|
|
1,875
|
|
|
Lake Las Vegas Resort, Revolving Credit
Agreement (a) (d) (f)
|
|
|
16.10
|
|
|
06/20/12
|
|
|
146,838
|
|
|
521
|
|
|
Landsource Communities Development, LLC, Revolving Credit
Agreement (d) (f)
|
|
|
6.00 to 9.50
|
|
|
05/31/09
|
|
|
481,623
|
|
|
2,246
|
|
|
Landsource Communities Development, LLC, Term
Loan (a) (d) (f)
|
|
|
8.25
|
|
|
05/31/09
|
|
|
403,431
|
|
|
3,000
|
|
|
Metroflag BP, LLC, Term Loan (d) (e)
|
|
|
11.25
|
|
|
01/06/09
|
|
|
225,000
|
|
|
2,005
|
|
|
NLV Holdings, LLC, Term Loan (a)
|
|
|
10.66
|
|
|
05/30/12
|
|
|
300,734
|
|
|
4,994
|
|
|
Pivotal Promontory, LLC, Term Loan (d) (f)
|
|
|
7.00 to 8.75
|
|
|
08/31/10 to 08/31/11
|
|
|
1,352,485
|
|
|
879
|
|
|
Realogy Corp., Term Loan
|
|
|
3.42 to 5.71
|
|
|
10/10/13
|
|
|
523,472
|
|
|
3,916
|
|
|
Re/Max International, Inc., Term Loan
|
|
|
3.84 to 4.59
|
|
|
12/17/12
|
|
|
2,760,467
|
|
|
4,468
|
|
|
Rhodes Ranch General Partnership, Term Loan (a)
|
|
|
8.96 to 10.21
|
|
|
11/21/10 to 11/21/11
|
|
|
1,283,754
|
|
|
396
|
|
|
Shea Capital I, LLC, Term Loan
|
|
|
3.59 to 4.50
|
|
|
10/27/11
|
|
|
188,134
|
|
11
See Notes to Financial
Statements
Van Kampen
Dynamic Credit Opportunities Fund
Portfolio of
Investments n January 31,
2009
(Unaudited) continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
|
|
|
|
Amount
|
|
|
|
|
|
Stated
|
|
|
(000)
|
|
Borrower
|
|
Coupon
|
|
Maturity*
|
|
Value
|
|
|
|
|
|
|
Buildings & Real Estate (Continued)
|
$
|
1,481
|
|
|
Shea Mountain House, LLC, Term Loan
|
|
|
3.58
|
%
|
|
05/11/11
|
|
$
|
370,292
|
|
|
2,000
|
|
|
Standard Pacific Corp., Term Loan
|
|
|
3.90
|
|
|
05/05/13
|
|
|
1,127,500
|
|
|
173
|
|
|
Tamarack Resorts, LLC, Term Loan (c)
|
|
|
6.94
|
|
|
05/03/09
|
|
|
152,902
|
|
|
2,496
|
|
|
Tamarack Resorts, LLC, Term Loan (d)
|
|
|
7.50 to 8.05
|
|
|
05/19/11
|
|
|
998,489
|
|
|
4,068
|
|
|
WCI Communities, Inc, Term Loan (f)
|
|
|
5.70 to 8.25
|
|
|
09/24/09 to 12/23/10
|
|
|
3,134,130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20,383,044
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Equipment & Services 1.9%
|
|
2,963
|
|
|
GSI Holdings, LLC, Term Loan
|
|
|
4.44
|
|
|
08/01/14
|
|
|
1,703,437
|
|
|
3,913
|
|
|
NCO Financial Systems, Term Loan
|
|
|
5.72 to 6.41
|
|
|
05/15/13
|
|
|
2,837,276
|
|
|
5,016
|
|
|
RGIS Services, LLC, Term Loan
|
|
|
2.91 to 3.96
|
|
|
04/30/14
|
|
|
3,542,615
|
|
|
3,945
|
|
|
SMG Holdings, Inc., Term Loan
|
|
|
3.41 to 4.78
|
|
|
07/27/14
|
|
|
3,353,197
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,436,525
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chemicals, Plastics & Rubber 5.9%
|
|
5,795
|
|
|
Arizona Chemical Co., Term Loan
|
|
|
2.41 to 5.92
|
|
|
02/28/13 to 02/28/14
|
|
|
3,569,923
|
|
|
10,757
|
|
|
Borsodchem, Term Loan (Hungary)
|
|
|
7.66 to 8.16
|
|
|
11/28/14 to 11/28/15
|
|
|
5,951,968
|
|
|
5,000
|
|
|
Brenntag Holdings GMBH & Co. KG, Term Loan (Germany)
|
|
|
5.50
|
|
|
07/17/15
|
|
|
3,050,000
|
|
|
2,293
|
|
|
Foamex LP, Term Loan (d)
|
|
|
3.58 to 5.50
|
|
|
02/12/13
|
|
|
718,519
|
|
|
9,151
|
|
|
Hexion Specialty Chemicals, Inc., Term Loan
|
|
|
3.69 to 5.50
|
|
|
05/05/13 to 05/06/13
|
|
|
3,590,385
|
|
|
5,385
|
|
|
Lyondell Chemical Co., Term Loan (f)
|
|
|
5.165 to 5.75
|
|
|
12/20/13 to 12/22/14
|
|
|
1,924,950
|
|
|
10,572
|
|
|
Momentive Performance, Term Loan
|
|
|
4.02
|
|
|
12/04/13
|
|
|
8,849,699
|
|
|
4,975
|
|
|
PQ Corp., Term Loan
|
|
|
4.43 to 4.71
|
|
|
07/30/14
|
|
|
3,022,313
|
|
|
4,950
|
|
|
Univar Inc., Term Loan
|
|
|
4.46
|
|
|
10/10/14
|
|
|
2,741,062
|
|
|
13,827
|
|
|
Wellman, Inc., Term Loan (c) (d) (f)
|
|
|
5.00
|
|
|
01/29/19 to 2/10/10
|
|
|
2,699,390
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
36,118,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction Material 1.1%
|
|
1,861
|
|
|
Axia, Inc., Term Loan (g)
|
|
|
5.00
|
|
|
12/21/12
|
|
|
511,739
|
|
|
4,270
|
|
|
Axia, Inc., Term Loan (a) (g)
|
|
|
17.95
|
|
|
12/21/12
|
|
|
960,791
|
|
|
1,252
|
|
|
Building Materials Corp. of America, Term Loan
|
|
|
3.63 to 6.25
|
|
|
02/24/14 to 09/15/14
|
|
|
698,141
|
|
12
See Notes to Financial
Statements
Van Kampen
Dynamic Credit Opportunities Fund
Portfolio of
Investments n January 31,
2009
(Unaudited) continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
|
|
|
|
Amount
|
|
|
|
|
|
Stated
|
|
|
(000)
|
|
Borrower
|
|
Coupon
|
|
Maturity*
|
|
Value
|
|
|
|
|
|
|
Construction Material (Continued)
|
$
|
2,789
|
|
|
Building Materials Holding Corp., Term Loan
|
|
|
6.50 to 8.25
|
%
|
|
11/10/11
|
|
$
|
1,143,417
|
|
|
3,859
|
|
|
Contech Construction Products, Inc., Term Loan
|
|
|
2.43
|
|
|
01/31/13
|
|
|
1,794,289
|
|
|
2,000
|
|
|
Custom Building Products, Inc., Term Loan
|
|
|
10.75
|
|
|
04/20/12
|
|
|
1,187,500
|
|
|
971
|
|
|
United Subcontractors, Inc., Term Loan (a)
|
|
|
6.43 to 6.80
|
|
|
12/27/12
|
|
|
242,666
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,538,543
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Containers, Packaging & Glass 2.4%
|
|
1,381
|
|
|
Anchor Glass Container Corp., Term Loan
|
|
|
6.75 to 7.96
|
|
|
06/20/14
|
|
|
1,153,095
|
|
|
8,927
|
|
|
Berlin Packaging, LLC, Term Loan
|
|
|
3.41 to 8.74
|
|
|
08/17/14 to 08/17/15
|
|
|
6,707,705
|
|
|
414
|
|
|
Berry Plastics Group, Inc., Term Loan
|
|
|
2.42
|
|
|
04/03/15
|
|
|
305,098
|
|
|
4,641
|
|
|
Berry Plastics Group, Inc., Term Loan (a)
|
|
|
8.42
|
|
|
06/05/14
|
|
|
696,116
|
|
|
5,079
|
|
|
Consolidated Container Co., LLC, Term Loan
|
|
|
2.58 to 5.91
|
|
|
03/28/14 to 09/28/14
|
|
|
2,043,560
|
|
|
2,331
|
|
|
Graphic Packaging International, Inc., Revolving
Credit Agreement
|
|
|
2.25 to 2.70
|
|
|
05/16/13
|
|
|
1,771,750
|
|
|
2,305
|
|
|
Solo Cup, Inc., Term Loan
|
|
|
3.95 to 5.67
|
|
|
02/27/11
|
|
|
2,008,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,686,155
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diversified Manufacturing 0.4%
|
|
6,796
|
|
|
Euramax International, Inc., Term Loan
|
|
|
6.75 to 11.00
|
|
|
06/29/12 to 06/29/13
|
|
|
2,257,819
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ecological 0.5%
|
|
10,250
|
|
|
Synagro Technologies, Inc., Term Loan
|
|
|
5.12
|
|
|
10/02/14
|
|
|
2,818,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Education & Child Care 0.8%
|
|
700
|
|
|
Bright Horizons Family Solutions, Revolving Credit Agreement
|
|
|
3.50 to 5.75
|
|
|
05/28/14
|
|
|
490,000
|
|
|
500
|
|
|
Educate, Inc., Term Loan
|
|
|
6.71
|
|
|
06/14/14
|
|
|
200,000
|
|
|
1,984
|
|
|
Education Management, LLC, Term Loan
|
|
|
3.25
|
|
|
06/01/13
|
|
|
1,587,544
|
|
|
5,000
|
|
|
Nelson Education Ltd., Term Loan (Canada)
|
|
|
7.46
|
|
|
07/05/15
|
|
|
2,625,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,902,544
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13
See Notes to Financial
Statements
Van Kampen
Dynamic Credit Opportunities Fund
Portfolio of
Investments n January 31,
2009
(Unaudited) continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
|
|
|
|
Amount
|
|
|
|
|
|
Stated
|
|
|
(000)
|
|
Borrower
|
|
Coupon
|
|
Maturity*
|
|
Value
|
|
|
|
|
|
|
Electronics 3.8%
|
$
|
2,954
|
|
|
Ax Acquisition Corp., Term Loan
|
|
|
5.94
|
%
|
|
08/15/14
|
|
$
|
1,624,661
|
|
|
4,000
|
|
|
Dealer Computer Services, Inc., Term Loan
|
|
|
5.91
|
|
|
10/26/13
|
|
|
1,350,000
|
|
|
9,249
|
|
|
Edwards Ltd, Term Loan (Cayman Islands II)
|
|
|
2.41 to 6.16
|
|
|
05/31/14 to 11/30/14
|
|
|
4,823,386
|
|
|
2,962
|
|
|
Infor Enterprise Solutions Holdings, Inc., Term Loan
|
|
|
5.21
|
|
|
07/28/12
|
|
|
1,747,651
|
|
|
5,856
|
|
|
Kronos, Inc., Term Loan
|
|
|
3.71 to 7.21
|
|
|
06/11/14 to 06/11/15
|
|
|
3,559,225
|
|
|
7,880
|
|
|
Open Solutions, Inc., Term Loan
|
|
|
3.26
|
|
|
01/23/14
|
|
|
3,230,685
|
|
|
4,904
|
|
|
Stratus Technologies, Inc., Term Loan
|
|
|
5.22
|
|
|
03/29/11
|
|
|
3,040,757
|
|
|
5,377
|
|
|
Verint Systems, Inc., Term Loan
|
|
|
3.59
|
|
|
05/25/14
|
|
|
3,172,285
|
|
|
718
|
|
|
X-Rite, Inc., Term Loan
|
|
|
7.75 to 8.00
|
|
|
10/24/12
|
|
|
570,996
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23,119,646
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Entertainment & Leisure 4.1%
|
|
4,830
|
|
|
Bushnell, Inc., Term Loan
|
|
|
5.18 to 5.21
|
|
|
08/24/13
|
|
|
3,501,450
|
|
|
3,553
|
|
|
Fender Musical Instruments Corp., Term Loan
|
|
|
2.66 to 3.71
|
|
|
06/09/14
|
|
|
2,220,434
|
|
|
36,705
|
|
|
Metro-Goldwyn-Mayer
Studios, Inc., Term Loan
|
|
|
3.66 to 4.71
|
|
|
04/08/12 to 04/09/12
|
|
|
16,921,179
|
|
|
4,013
|
|
|
Panavision, Inc., Term Loan
|
|
|
4.41 to 7.03
|
|
|
03/30/11
|
|
|
2,407,638
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25,050,701
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Farming & Agriculture 0.5%
|
|
5,000
|
|
|
Wm. Bolthouse Farms, Inc., Term Loan
|
|
|
5.91
|
|
|
12/16/13
|
|
|
3,062,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance 4.2%
|
|
4,029
|
|
|
C.G. JCF Corp., Term Loan
|
|
|
3.41
|
|
|
08/01/14
|
|
|
2,538,350
|
|
|
11,820
|
|
|
First Data Corp., Term Loan
|
|
|
4.52 to 4.66
|
|
|
09/28/14
|
|
|
9,988,720
|
|
|
324
|
|
|
First Data Corp., Term Loan
|
|
|
3.14 to 3.16
|
|
|
09/24/14
|
|
|
206,439
|
|
|
6,065
|
|
|
National Processing Co. Group, Inc., Term Loan
|
|
|
3.44 to 7.96
|
|
|
09/29/12 to 09/29/14
|
|
|
3,379,626
|
|
|
3,308
|
|
|
Nuveen Investments, Inc., Term Loan
|
|
|
3.40 to 4.47
|
|
|
11/13/14
|
|
|
1,596,271
|
|
|
5,136
|
|
|
Oxford Acq. III Ltd., Term Loan (United Kingdom)
|
|
|
2.88
|
|
|
05/12/14
|
|
|
2,172,682
|
|
|
9,938
|
|
|
RJO Holdings Corp., Term Loan
|
|
|
3.43 to 7.18
|
|
|
07/12/14 to 07/12/15
|
|
|
3,420,937
|
|
|
5,455
|
|
|
Transfirst Holdings, Inc., Term Loan
|
|
|
4.21 to 7.46
|
|
|
06/15/14 to 06/15/15
|
|
|
2,488,875
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25,791,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14
See Notes to Financial
Statements
Van Kampen
Dynamic Credit Opportunities Fund
Portfolio of
Investments n January 31,
2009
(Unaudited) continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
|
|
|
|
Amount
|
|
|
|
|
|
Stated
|
|
|
(000)
|
|
Borrower
|
|
Coupon
|
|
Maturity*
|
|
Value
|
|
|
|
|
|
|
Health & Beauty 1.2%
|
$
|
5,081
|
|
|
American Safety Razor Co., Term Loan
|
|
|
6.66
|
%
|
|
01/30/14
|
|
$
|
3,378,629
|
|
|
7,388
|
|
|
Marietta Intermediate Holdings, Term Loan (a)
|
|
|
5.41 to 12.00
|
|
|
11/30/10 to 12/17/11
|
|
|
1,062,071
|
|
|
4,925
|
|
|
Philosophy, Inc., Term Loan
|
|
|
2.41
|
|
|
03/16/14
|
|
|
3,078,125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,518,825
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Healthcare 5.4%
|
|
561
|
|
|
Community Health Systems, Inc., Term Loan
|
|
|
2.72 to 4.45
|
|
|
07/25/14
|
|
|
477,365
|
|
|
4,052
|
|
|
Concentra, Inc., Term Loan
|
|
|
3.71 to 7.71
|
|
|
06/25/14 to 06/25/15
|
|
|
1,296,209
|
|
|
1,980
|
|
|
FHC Health Systems, Term Loan (c)
|
|
|
6.46
|
|
|
12/13/13
|
|
|
1,530,540
|
|
|
7,418
|
|
|
HCA, Inc., Term Loan
|
|
|
3.71
|
|
|
11/18/13
|
|
|
6,154,623
|
|
|
4,408
|
|
|
HCR Healthcare, LLC, Term Loan
|
|
|
2.83 to 2.91
|
|
|
12/22/14
|
|
|
3,096,592
|
|
|
3,285
|
|
|
Health Management Associates, Inc., Term Loan
|
|
|
3.21
|
|
|
02/28/14
|
|
|
2,406,217
|
|
|
1,708
|
|
|
Healthcare Partners, LLC, Term Loan
|
|
|
2.16
|
|
|
10/31/13
|
|
|
1,460,537
|
|
|
8,455
|
|
|
Inverness Medical Innovations, Inc., Term Loan
|
|
|
2.44 to 4.69
|
|
|
06/26/14 to 06/26/15
|
|
|
6,384,937
|
|
|
2,200
|
|
|
Surgical Care Affiliates, LLC, Revolving Credit Agreement
|
|
|
2.00 to 3.46
|
|
|
06/29/13
|
|
|
1,111,000
|
|
|
5,932
|
|
|
Surgical Care Affiliates, LLC, Term Loan
|
|
|
3.46
|
|
|
12/29/14
|
|
|
3,633,552
|
|
|
3,968
|
|
|
United Surgical Partners International, Inc., Term Loan
|
|
|
2.34 to 3.16
|
|
|
04/19/14
|
|
|
3,253,509
|
|
|
4,930
|
|
|
Viant Holdings, Inc., Term Loan
|
|
|
3.71
|
|
|
06/25/14
|
|
|
2,538,918
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33,343,999
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home & Office Furnishings, Housewares &
Durable Consumer Products 1.0%
|
|
8,651
|
|
|
Hunter Fan Co., Term Loan
|
|
|
4.74 to 7.09
|
|
|
04/16/14 to 10/16/14
|
|
|
3,169,065
|
|
|
4,925
|
|
|
Mattress Holding Corp., Inc., Term Loan
|
|
|
2.67
|
|
|
01/18/14
|
|
|
1,625,250
|
|
|
4,000
|
|
|
National Bedding Co., LLC, Term Loan
|
|
|
5.39
|
|
|
02/28/14
|
|
|
1,453,332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,247,647
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotels, Motels, Inns & Gaming 9.4%
|
|
1,996
|
|
|
BLB Worldwide Holdings, Inc., Term Loan (a)
|
|
|
2.95 to 4.75
|
|
|
08/23/11
|
|
|
791,931
|
|
|
5,500
|
|
|
BLB Worldwide Holdings, Inc., Term Loan (a) (d)
|
|
|
4.70
|
|
|
07/18/12
|
|
|
495,000
|
|
|
10,456
|
|
|
Cannery Casino Resorts, LLC, Term Loan
|
|
|
2.60 to 4.60
|
|
|
05/18/13 to 05/18/14
|
|
|
9,263,969
|
|
15
See Notes to Financial
Statements
Van Kampen
Dynamic Credit Opportunities Fund
Portfolio of
Investments n January 31,
2009
(Unaudited) continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
|
|
|
|
Amount
|
|
|
|
|
|
Stated
|
|
|
(000)
|
|
Borrower
|
|
Coupon
|
|
Maturity*
|
|
Value
|
|
|
|
|
|
|
Hotels, Motels, Inns & Gaming (Continued)
|
|
£ 2,419
|
|
|
Gala Group Ltd., Term Loan (United Kingdom)
|
|
|
6.75
|
%
|
|
10/07/12
|
|
$
|
2,144,026
|
|
|
10,000
|
|
|
Gateway Casinos & Entertainment, Term Loan
|
|
|
6.94
|
|
|
03/31/15
|
|
|
2,666,670
|
|
|
4,758
|
|
|
Golden Nugget, Inc., Term Loan
|
|
|
2.39 to 3.67
|
|
|
06/30/14 to 12/31/14
|
|
|
835,455
|
|
|
842
|
|
|
Greektown Casino, LLC, Term Loan (d) (f)
|
|
|
7.00
|
|
|
12/03/12
|
|
|
306,627
|
|
|
4,605
|
|
|
Greektown Holdings, LLC, Term Loan
|
|
|
8.50
|
|
|
06/01/09
|
|
|
3,914,564
|
|
|
4,984
|
|
|
Green Valley Ranch Gaming, LLC, Term Loan
|
|
|
3.64 to 4.39
|
|
|
02/16/14 to 08/16/14
|
|
|
1,239,486
|
|
|
4,563
|
|
|
Harrahs Operating Co., Inc., Term Loan
|
|
|
4.16 to 4.46
|
|
|
01/28/15
|
|
|
2,858,722
|
|
|
10,000
|
|
|
Magnolia Hill, LLC, Term Loan
|
|
|
3.59 to 14.00
|
|
|
10/30/13 to 04/24/14
|
|
|
9,300,000
|
|
|
22,500
|
|
|
Regency Entertainment, Term Loan (Greece)
|
|
|
7.38 to 7.76
|
|
|
03/02/14 to 03/02/15
|
|
|
17,573,489
|
|
|
7,406
|
|
|
Yonkers Racing Corp., Term Loan
|
|
|
10.50
|
|
|
08/12/11
|
|
|
6,369,270
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
57,759,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance 2.8%
|
|
3,933
|
|
|
Alliant Holdings I, Inc., Term Loan
|
|
|
4.46
|
|
|
08/21/14
|
|
|
3,107,367
|
|
|
7,387
|
|
|
AmWins Group, Inc, Term Loan
|
|
|
2.84 to 4.70
|
|
|
06/08/13
|
|
|
4,321,688
|
|
|
3,053
|
|
|
Conseco, Inc., Term Loan
|
|
|
2.39
|
|
|
10/10/13
|
|
|
1,976,993
|
|
|
6,455
|
|
|
HMSC Holdings Corp., Term Loan
|
|
|
2.58 to 5.91
|
|
|
04/03/14 to 10/03/14
|
|
|
2,675,761
|
|
|
5,860
|
|
|
Mitchell International, Inc., Term Loan
|
|
|
6.75
|
|
|
03/30/15
|
|
|
3,457,400
|
|
|
2,490
|
|
|
Vertafore, Inc., Term Loan
|
|
|
6.41 to 8.16
|
|
|
01/31/12 to 01/31/13
|
|
|
1,804,950
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17,344,159
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Machinery 1.2%
|
|
5,790
|
|
|
Goodman Global, Inc., Term Loan
|
|
|
7.71
|
|
|
02/13/14
|
|
|
4,767,706
|
|
|
3,950
|
|
|
Mold-Masters Luxembourg Holdings SA, Term Loan
|
|
|
3.94
|
|
|
10/11/14
|
|
|
2,765,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,532,706
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medical Products & Services 1.1%
|
|
2,000
|
|
|
AGA Medical Corp., Term Loan
|
|
|
3.36 to 5.10
|
|
|
04/28/13
|
|
|
1,700,000
|
|
|
1,856
|
|
|
Biomet, Inc., Term Loan
|
|
|
4.46
|
|
|
03/25/15
|
|
|
1,658,166
|
|
16
See Notes to Financial
Statements
Van Kampen
Dynamic Credit Opportunities Fund
Portfolio of
Investments n January 31,
2009
(Unaudited) continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
|
|
|
|
Amount
|
|
|
|
|
|
Stated
|
|
|
(000)
|
|
Borrower
|
|
Coupon
|
|
Maturity*
|
|
Value
|
|
|
|
|
|
|
Medical Products & Services (Continued)
|
$
|
1,834
|
|
|
Carestream Health, Inc., Term Loan
|
|
|
2.41 to 3.17
|
%
|
|
04/30/13
|
|
$
|
1,433,919
|
|
|
2,647
|
|
|
VWR Funding, Inc., Term Loan
|
|
|
2.91
|
|
|
06/29/14
|
|
|
1,958,823
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,750,908
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining, Steel, Iron & Non-Precious
Metals 0.6%
|
|
7,061
|
|
|
John Maneely Co., Term Loan
|
|
|
4.41 to 4.60
|
|
|
12/09/13
|
|
|
3,918,834
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Resources 0.8%
|
|
3,200
|
|
|
CDX Funding, LLC, Term Loan (d) (f)
|
|
|
12.25
|
|
|
03/31/13
|
|
|
1,685,335
|
|
|
3,000
|
|
|
Dresser, Inc., Term Loan
|
|
|
7.99
|
|
|
05/04/15
|
|
|
1,485,000
|
|
|
2,985
|
|
|
Western Refining, Inc., Term Loan
|
|
|
9.25
|
|
|
05/30/14
|
|
|
1,675,246
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,845,581
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Durable Consumer Products 5.7%
|
|
6,686
|
|
|
Amscan Holdings, Inc., Term Loan
|
|
|
3.72 to 4.42
|
|
|
05/25/13
|
|
|
4,563,144
|
|
|
1,958
|
|
|
Huish Detergents, Inc., Term Loan
|
|
|
2.23
|
|
|
04/26/14
|
|
|
1,668,796
|
|
|
8,373
|
|
|
KIK Custom Products, Inc., Term Loan
|
|
|
2.64 to 5.39
|
|
|
05/31/14 to 11/30/14
|
|
|
1,734,695
|
|
|
2,962
|
|
|
Mega Brands, Inc., Term Loan (Canada)
|
|
|
8.75
|
|
|
07/26/12
|
|
|
666,377
|
|
|
985
|
|
|
Nice-Pak Products, Inc., Term Loan
|
|
|
4.47
|
|
|
06/18/14
|
|
|
689,500
|
|
|
16,836
|
|
|
Ontex, Term Loan (Belgium)
|
|
|
6.07 to 6.57
|
|
|
08/08/12 to 08/08/13
|
|
|
17,784,754
|
|
|
475
|
|
|
Spectrum Brands, Inc., Revolving Credit Agreement
|
|
|
4.46
|
|
|
03/30/13
|
|
|
295,868
|
|
|
9,264
|
|
|
Spectrum Brands, Inc., Term Loan
|
|
|
5.40 to 6.15
|
|
|
03/30/13
|
|
|
5,766,763
|
|
|
5,000
|
|
|
Targus Group International, Inc., Term Loan
|
|
|
10.67
|
|
|
05/22/13
|
|
|
1,525,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
34,694,897
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Paper & Forest Products 1.6%
|
|
3,200
|
|
|
Ainsworth Lumber Co., Ltd., Term Loan
|
|
|
5.44
|
|
|
06/26/14
|
|
|
2,304,000
|
|
|
7,425
|
|
|
New Page, Term Loan
|
|
|
5.31
|
|
|
12/19/14
|
|
|
4,318,877
|
|
|
1,967
|
|
|
SP Newsprint, Term Loan
|
|
|
11.00
|
|
|
03/31/10
|
|
|
1,720,833
|
|
|
383
|
|
|
Verso Paper Holding, LLC, Term Loan (a)
|
|
|
7.69 to 8.44
|
|
|
08/01/13
|
|
|
143,663
|
|
|
3,444
|
|
|
White Birch Paper Co., Term Loan (Canada)
|
|
|
4.21
|
|
|
05/08/14
|
|
|
1,463,614
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,950,987
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17
See Notes to Financial
Statements
Van Kampen
Dynamic Credit Opportunities Fund
Portfolio of
Investments n January 31,
2009
(Unaudited) continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
|
|
|
|
Amount
|
|
|
|
|
|
Stated
|
|
|
(000)
|
|
Borrower
|
|
Coupon
|
|
Maturity*
|
|
Value
|
|
|
|
|
|
|
Pharmaceuticals 0.2%
|
$
|
2,000
|
|
|
Generics International, Inc., Term Loan
|
|
|
8.96
|
%
|
|
04/30/15
|
|
$
|
1,250,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Printing & Publishing 9.9%
|
|
9,744
|
|
|
American Media Operations, Inc., Term Loan
|
|
|
10.00
|
|
|
01/31/13
|
|
|
5,846,613
|
|
|
1,823
|
|
|
Ascend Media Holdings, LLC, Term Loan (d)
|
|
|
10.25
|
|
|
01/31/12
|
|
|
455,873
|
|
|
992
|
|
|
DRI Holdings, Inc., Term Loan
|
|
|
3.41 to 6.88
|
|
|
07/03/14
|
|
|
595,081
|
|
|
4,000
|
|
|
Endurance Business Media, Inc., Term Loan (c)
|
|
|
9.25
|
|
|
01/26/14
|
|
|
1,200,000
|
|
|
4,123
|
|
|
Gatehouse Media, Inc., Term Loan
|
|
|
2.43 to 4.20
|
|
|
08/28/14
|
|
|
1,068,495
|
|
|
4,938
|
|
|
Hanley-Wood, LLC, Term Loan
|
|
|
2.64 to 2.69
|
|
|
03/08/14
|
|
|
1,933,856
|
|
|
10,000
|
|
|
Idearc, Inc., Term Loan
|
|
|
1.92
|
|
|
11/17/13
|
|
|
3,605,000
|
|
|
3,445
|
|
|
Intermedia Outdoor, Inc., Term Loan
|
|
|
4.46
|
|
|
01/31/13
|
|
|
2,066,887
|
|
|
5,731
|
|
|
MediaNews Group, Inc., Term Loan
|
|
|
3.41 to 4.66
|
|
|
12/30/10 to 08/02/13
|
|
|
1,872,802
|
|
|
9,870
|
|
|
Merrill Communications, LLC, Term Loan
|
|
|
8.70
|
|
|
11/15/13
|
|
|
2,961,000
|
|
|
2,333
|
|
|
Newsday, LLC, Term Loan
|
|
|
6.59
|
|
|
08/01/13
|
|
|
2,012,500
|
|
|
5,946
|
|
|
Penton Media, Inc., Term Loan
|
|
|
2.66 to 6.17
|
|
|
02/01/13 to 02/01/14
|
|
|
1,607,239
|
|
|
12,133
|
|
|
Primacom, Term Loan (Germany) (c)
|
|
|
8.14 to 9.39
|
|
|
12/20/14 to 12/20/16
|
|
|
13,670,921
|
|
|
1,463
|
|
|
Primedia, Inc., Term Loan
|
|
|
2.66 to 3.71
|
|
|
08/01/14
|
|
|
957,975
|
|
|
13,000
|
|
|
Prosiebensat.1 Media AG, Term Loan (Germany)
|
|
|
6.85
|
|
|
07/03/15
|
|
|
8,110,373
|
|
|
2,006
|
|
|
R.H. Donnelley, Inc., Term Loan
|
|
|
6.75
|
|
|
06/30/11
|
|
|
1,290,353
|
|
|
3,675
|
|
|
Thomas Nelson, Inc.,Term Loan
|
|
|
8.75
|
|
|
06/12/12
|
|
|
1,304,469
|
|
|
3,186
|
|
|
Thomson Medical Education, Term Loan
|
|
|
5.39 to 9.14
|
|
|
04/14/14 to 04/13/15
|
|
|
2,348,501
|
|
|
16,000
|
|
|
Tribune Co., Bridge Term Loan (c) (d) (f)
|
|
|
8.25
|
|
|
12/20/15
|
|
|
240,000
|
|
|
26,951
|
|
|
Tribune Co., Term Loan (d) (f)
|
|
|
5.25
|
|
|
05/19/14
|
|
|
7,536,667
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
60,684,605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18
See Notes to Financial
Statements
Van Kampen
Dynamic Credit Opportunities Fund
Portfolio of
Investments n January 31,
2009
(Unaudited) continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
|
|
|
|
Amount
|
|
|
|
|
|
Stated
|
|
|
(000)
|
|
Borrower
|
|
Coupon
|
|
Maturity*
|
|
Value
|
|
|
|
|
|
|
Restaurants & Food Service 0.6%
|
$
|
1,576
|
|
|
Center Cut Hospitality, Inc., Term Loan
|
|
|
4.66
|
%
|
|
07/06/14
|
|
$
|
906,200
|
|
|
909
|
|
|
Sagittarius Restaurants, LLC, Term Loan
|
|
|
10.25
|
|
|
03/29/13
|
|
|
327,091
|
|
|
3,327
|
|
|
Volume Services America, Inc., Term Loan
|
|
|
8.25
|
|
|
12/31/12
|
|
|
2,329,003
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,562,294
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RetailOil & Gas 1.1%
|
|
8,903
|
|
|
The Pantry, Inc., Term Loan
|
|
|
2.16
|
|
|
05/15/14
|
|
|
6,788,666
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RetailSpecialty 2.2%
|
|
7,796
|
|
|
Travelport, Term Loan
|
|
|
7.39
|
|
|
08/23/13
|
|
|
5,115,561
|
|
|
7,500
|
|
|
Zapf, Term Loan (Germany) (c)
|
|
|
8.48
|
|
|
11/30/12
|
|
|
8,162,549
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,278,110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RetailStores 2.0%
|
|
5,000
|
|
|
Dollar General Corp, Term Loan
|
|
|
3.16
|
|
|
07/06/14
|
|
|
4,032,500
|
|
|
6,689
|
|
|
General Nutrition Centers, Inc., Term Loan
|
|
|
3.69 to 3.72
|
|
|
09/16/13
|
|
|
4,581,884
|
|
|
5,973
|
|
|
Guitar Center, Inc., Term Loan
|
|
|
3.87 to 5.75
|
|
|
10/09/14
|
|
|
3,075,838
|
|
|
1,055
|
|
|
Sally Holdings, Inc., Term Loan
|
|
|
2.66 to 4.50
|
|
|
11/16/13
|
|
|
881,323
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,571,545
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TelecommunicationsEquipment &
Services 3.1%
|
|
10,000
|
|
|
Fibernet, Term Loan (Bulgaria)
|
|
|
4.87 to 5.37
|
|
|
08/31/15 to 08/31/16
|
|
|
10,563,299
|
|
|
11,369
|
|
|
Orion, Term Loan (Germany)
|
|
|
7.37 to 8.41
|
|
|
10/31/13 to 10/30/15
|
|
|
8,512,816
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19,076,115
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TelecommunicationsLocal Exchange
Carriers 1.6%
|
|
7,982
|
|
|
Global
Tel*Link
Corp., Term Loan
|
|
|
4.41 to 4.96
|
|
|
02/14/13
|
|
|
7,024,535
|
|
|
3,156
|
|
|
Hawaiian Telcom Communications, Inc., Term Loan (f)
|
|
|
4.50
|
|
|
06/01/14
|
|
|
1,381,958
|
|
|
282
|
|
|
NuVox Transition Subsidiary, LLC, Term Loan
|
|
|
5.17
|
|
|
05/31/14
|
|
|
201,050
|
|
|
1,397
|
|
|
Sorenson Communications, Inc., Term Loan
|
|
|
2.91
|
|
|
04/28/14
|
|
|
1,188,493
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,796,036
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19
See Notes to Financial
Statements
Van Kampen
Dynamic Credit Opportunities Fund
Portfolio of
Investments n January 31,
2009
(Unaudited) continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
|
|
|
|
Amount
|
|
|
|
|
|
Stated
|
|
|
(000)
|
|
Borrower
|
|
Coupon
|
|
Maturity*
|
|
Value
|
|
|
|
|
|
|
TelecommunicationsWireless 0.8%
|
$
|
1,923
|
|
|
Asurion Corp., Term Loan
|
|
|
3.39 to 5.71
|
%
|
|
07/03/14
|
|
$
|
1,403,974
|
|
|
3,827
|
|
|
MetroPCS Wireless, Inc., Term Loan
|
|
|
2.69 to 5.50
|
|
|
11/03/13
|
|
|
3,349,973
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,753,947
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Textiles & Leather 0.7%
|
|
3,481
|
|
|
Gold Toe Investment Corp., Term Loan
|
|
|
8.50 to 11.75
|
|
|
10/30/13 to 04/30/14
|
|
|
1,667,582
|
|
|
5,000
|
|
|
Levi Strauss & Co, Term Loan
|
|
|
2.58
|
|
|
03/27/14
|
|
|
2,856,250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,523,832
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TransportationCargo 0.4%
|
|
9,000
|
|
|
JHCI Acquisitions, Inc., Term Loan
|
|
|
5.91
|
|
|
12/19/14
|
|
|
2,673,747
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Utilities 1.9%
|
|
5,000
|
|
|
Bicent Power, LLC, Term Loan
|
|
|
5.46
|
|
|
12/31/14
|
|
|
2,350,000
|
|
|
4,853
|
|
|
First Light Power Resources, Inc., Term Loan
|
|
|
4.00 to 5.97
|
|
|
11/01/13 to 05/01/14
|
|
|
3,201,606
|
|
|
187
|
|
|
Mach Gen, LLC, Term Loan
|
|
|
3.47
|
|
|
02/22/13
|
|
|
139,129
|
|
|
3,076
|
|
|
Texas Competitive Electric Holdings Co., LLC, Term Loan
|
|
|
3.91 to 5.89
|
|
|
10/14/14
|
|
|
2,154,169
|
|
|
6,000
|
|
|
TPF Generation Holdings, LLC, Term Loan
|
|
|
5.71
|
|
|
12/15/14
|
|
|
3,787,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,632,404
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Variable Rate Senior Loan
Interests** 105.4%
|
|
|
646,862,409
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes 31.4%
BroadcastingCable 3.8%
|
|
5,000
|
|
|
Kabel Deutschland (Germany)
|
|
|
10.63
|
|
|
07/01/14
|
|
|
4,850,000
|
|
|
14,500
|
|
|
Kabel Deutschland (Germany) (h)
|
|
|
10.75
|
|
|
07/01/14
|
|
|
18,380,141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23,230,141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Buildings & Real Estate 3.7%
|
|
16,865
|
|
|
Eco-bat Finance PLC (United Kingdom) (h)
|
|
|
10.13
|
|
|
01/31/13
|
|
|
19,866,428
|
|
|
5,000
|
|
|
Grohe Holding GmbH (Germany) (i)
|
|
|
5.49
|
|
|
01/15/14
|
|
|
2,864,895
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22,731,323
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chemicals, Plastics & Rubber 0.5%
|
|
5,000
|
|
|
Cognis GmbH (Germany) (h) (i)
|
|
|
4.00
|
|
|
09/15/13
|
|
|
2,825,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20
See Notes to Financial
Statements
Van Kampen
Dynamic Credit Opportunities Fund
Portfolio of
Investments n January 31,
2009
(Unaudited) continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
|
|
|
|
Amount
|
|
|
|
|
|
Stated
|
|
|
(000)
|
|
Borrower
|
|
Coupon
|
|
Maturity*
|
|
Value
|
|
|
|
|
|
|
|
|
|
|
|
Containers, Packaging & Glass 1.1%
|
$
|
7,000
|
|
|
Owens-Illinois Group, Inc.
|
|
|
7.50
|
%
|
|
05/15/10
|
|
$
|
7,105,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction Material 0.2%
|
|
2,000
|
|
|
Compression Polymers Corp. (h) (i)
|
|
|
8.56
|
|
|
07/01/12
|
|
|
1,110,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Containers, Packaging & Glass 6.9%
|
|
14,900
|
|
|
Ardagh Glass Finance BV (Ireland) (h)
|
|
|
8.88
|
|
|
07/01/13
|
|
|
16,216,265
|
|
|
14,200
|
|
|
Ardagh Glass Finance (Ireland) (h)
|
|
|
7.13
|
|
|
06/15/17
|
|
|
13,272,625
|
|
|
15,725
|
|
|
Pregis Corp. (i)
|
|
|
7.61
|
|
|
04/15/13
|
|
|
12,936,280
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
42,425,170
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining, Steel, Iron & Non-Precious
Metals 2.6%
|
|
24,500
|
|
|
FMG Finance Pty Ltd (Australia) (h)
|
|
|
10.63
|
|
|
09/01/16
|
|
|
16,047,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TelecommunicationsEquipment &
Services 4.9%
|
|
15,825
|
|
|
Magyar Telecom (Invtel) (Netherlands) (h)
|
|
|
10.75
|
|
|
08/15/12
|
|
|
10,409,771
|
|
|
26,000
|
|
|
Versatel AG (Germany) (h) (i)
|
|
|
6.08
|
|
|
06/15/14
|
|
|
19,308,431
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
29,718,202
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TelecommunicationsWireless 2.3%
|
|
16,000
|
|
|
Wind Acquisition Fin SA (Italy) (h)
|
|
|
10.75
|
|
|
12/01/15
|
|
|
14,320,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TransportationCargo 5.4%
|
|
29,950
|
|
|
CB Bus AB (Sweden) (c)
|
|
|
9.13
|
|
|
08/01/09
|
|
|
33,362,740
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Notes 31.4%
|
|
|
192,875,076
|
|
|
|
|
|
|
Equities 0.0%
|
|
|
|
|
Axia, Inc. (Warrants for 6,352 Common shares, Expiration
date 12/31/18,
Acquired 9/24/08, Cost $0) (c) (g) (j)
|
|
|
0
|
|
Building Materials Holding Corp. (Warrants for
15,357 Common shares, Expiration date 09/30/15, Acquired
10/09/08, Cost $0)
|
|
|
0
|
|
|
|
|
|
|
|
|
|
|
|
Total Equities 0.0%
|
|
|
0
|
|
|
|
|
|
|
|
|
|
|
|
Total Long-Term Investments 136.8%
(Cost $1,467,712,368)
|
|
|
839,737,485
|
|
21
See Notes to Financial
Statements
Van Kampen
Dynamic Credit Opportunities Fund
Portfolio of
Investments n January 31,
2009
(Unaudited) continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
|
|
|
|
Amount
|
|
|
|
|
|
Stated
|
|
|
(000)
|
|
Borrower
|
|
Coupon
|
|
Maturity*
|
|
Value
|
|
|
Short-Term Investments
Time Deposit 6.1%
|
State Street Bank & Trust Corp. ($37,215,359 par,
0.10% coupon, dated 1/31/09, to be sold on 2/02/09
at $37,215,379) (b) ..
|
|
$
|
37,215,359
|
|
|
|
|
|
|
|
|
|
|
|
Total Short-Term Investments 6.1%
(Cost $37,215,359)
|
|
|
37,215,359
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments 142.9%
(Cost $1,504,927,727)
|
|
|
876,952,844
|
|
|
|
|
|
|
Borrowings (44.8%)
|
|
|
(275,000,000
|
)
|
|
|
|
|
|
Other Assets in Excess of Liabilities 1.9%
|
|
|
11,764,323
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets 100.0%
|
|
$
|
613,717,167
|
|
|
|
|
|
|
Par amounts are denominated in US currency unless otherwise
noted.
Percentages are calculated as a percentage of net assets.
|
|
|
(a)
|
|
Payment-in-kind
security.
|
|
(b)
|
|
All or a portion of this security
is designated in connection with unfunded loan commitments.
|
|
(c)
|
|
Market value is determined in
accordance with procedures established in good faith by the
Board of Trustees.
|
|
(d)
|
|
This Senior Loan interest is
non-income producing.
|
|
(e)
|
|
The borrower is in the process of
restructuring or amending the terms of this loan.
|
|
(f)
|
|
This borrower has filed for
protection in federal bankruptcy court.
|
|
(g)
|
|
Affiliated Company.
|
|
(h)
|
|
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.
|
|
(i)
|
|
Variable rate security. Interest
rate shown is that in effect at January 31, 2009.
|
|
(j)
|
|
Restricted security. Securities
were acquired through the restructuring of senior loans. These
securities are restricted, as they are not allowed to be
deposited via the Depository Trust Company. If at a later
point in time, the company wishes to register, the issuer will
bear the costs associated with registration. The aggregate value
of restricted securities represents less than 0.01% of the net
assets of the Fund.
|
|
*
|
|
Senior Loans in the Funds
portfolio generally are subject to mandatory
and/or
optional prepayment. Because of these mandatory prepayment
conditions and because there may be significant economic
|
22
See Notes to Financial
Statements
Van Kampen
Dynamic Credit Opportunities Fund
Portfolio of
Investments n January 31,
2009
(Unaudited) continued
|
|
|
|
|
incentives for a Borrower to
prepay, prepayments of Senior Loans in the Funds portfolio
may occur. As a result, the actual remaining maturity of Senior
Loans held in the Funds portfolio may be substantially
less than the stated maturities shown. Although the Fund is
unable to accurately estimate the actual remaining maturity of
individual Senior Loans, the Fund estimates that the actual
average maturity of the Senior Loans held in its portfolio will
be approximately
18-24 months.
|
|
**
|
|
Senior Loans in which the Fund
invests generally pay interest at rates, which are periodically
redetermined by reference to a base lending rate plus a premium.
These base lending rates are generally (i) the lending rate
offered by one or more major European banks, such as the London
Inter-Bank Offered Rate (LIBOR), (ii) the prime
rate offered by one or more major United States banks or
(iii) the certificate of deposit rate. Senior Loans are
generally considered to be restricted in that the Fund
ordinarily is contractually obligated to receive approval from
the Agent Bank
and/or
Borrower prior to the disposition of a Senior Loan.
|
Euro
£Great Britain Pound
Swap agreements
outstanding as of January 31, 2009:
Credit Default Swaps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pay/
|
|
|
|
|
|
|
|
|
|
Credit
|
|
|
|
|
|
|
Receive
|
|
|
|
Notional
|
|
|
|
|
|
Rating of
|
|
|
Reference
|
|
Buy/Sell
|
|
Fixed
|
|
Expiration
|
|
Amount
|
|
Upfront
|
|
|
|
Reference
|
Counterparty
|
|
Entity
|
|
Protection
|
|
Rate
|
|
Date
|
|
(000)
|
|
Payments
|
|
Value
|
|
Equity*
|
|
Bank of America N.A
|
|
Cognis GMBH
|
|
|
Sell
|
|
|
|
3.900
|
%
|
|
12/20/09
|
|
$
|
6,402
|
|
|
$
|
0
|
|
|
$
|
(672,459
|
)
|
|
B
|
Bank of America N.A
|
|
Seat Pagine
Gialle S.P.A
|
|
|
Sell
|
|
|
|
3.350
|
|
|
09/20/12
|
|
|
6,402
|
|
|
|
0
|
|
|
|
(2,128,164
|
)
|
|
NR
|
Bank of America N.A
|
|
Seat Pagine
Gialle S.P.A
|
|
|
Sell
|
|
|
|
3.650
|
|
|
12/20/12
|
|
|
6,402
|
|
|
|
0
|
|
|
|
(2,156,314
|
)
|
|
NR
|
Citigroup
|
|
Basell AF S.C.A
|
|
|
Sell
|
|
|
|
4.050
|
|
|
12/20/09
|
|
|
6,402
|
|
|
|
0
|
|
|
|
(4,674,417
|
)
|
|
NR
|
Citigroup
|
|
M-Real Oyj
|
|
|
Sell
|
|
|
|
4.250
|
|
|
12/20/09
|
|
|
6,402
|
|
|
|
0
|
|
|
|
(1,603,697
|
)
|
|
CCC+
|
Credit Suisse International
|
|
Codere Fin
Luxembourg SA
|
|
|
Sell
|
|
|
|
3.420
|
|
|
09/20/12
|
|
|
6,402
|
|
|
|
0
|
|
|
|
(2,015,885
|
)
|
|
B+
|
Deutsche Bank
|
|
M-Real Oyj
|
|
|
Sell
|
|
|
|
4.150
|
|
|
12/20/09
|
|
|
6,402
|
|
|
|
0
|
|
|
|
(1,608,863
|
)
|
|
CCC+
|
Goldman Sachs International
|
|
Boston
Generating, LLC
|
|
|
Sell
|
|
|
|
2.000
|
|
|
06/09/20
|
|
|
4,000
|
|
|
|
0
|
|
|
|
(320,109
|
)
|
|
NR
|
Goldman Sachs International
|
|
CDX.NA.HY.9
|
|
|
Sell
|
|
|
|
3.750
|
|
|
12/20/12
|
|
|
38,800
|
|
|
|
(1,524,500
|
)
|
|
|
(8,869,853
|
)
|
|
NR
|
Goldman Sachs International
|
|
CDX.NA.HY.10
|
|
|
Sell
|
|
|
|
5.000
|
|
|
06/20/13
|
|
|
19,800
|
|
|
|
(1,275,250
|
)
|
|
|
(4,327,486
|
)
|
|
NR
|
Goldman Sachs International
|
|
Citgo Petroleum
Corp.
|
|
|
Sell
|
|
|
|
3.000
|
|
|
12/20/10
|
|
|
5,000
|
|
|
|
0
|
|
|
|
(329,227
|
)
|
|
BB
|
Goldman Sachs International
|
|
Gala Group
Finance
|
|
|
Sell
|
|
|
|
3.450
|
|
|
12/20/12
|
|
|
6,402
|
|
|
|
0
|
|
|
|
(2,852,249
|
)
|
|
NR
|
Goldman Sachs International
|
|
Gala Group
Finance
|
|
|
Sell
|
|
|
|
4.150
|
|
|
03/20/13
|
|
|
6,402
|
|
|
|
0
|
|
|
|
(2,840,114
|
)
|
|
NR
|
Goldman Sachs International
|
|
Grohe Holding
GMBH
|
|
|
Sell
|
|
|
|
4.250
|
|
|
12/20/09
|
|
|
12,804
|
|
|
|
0
|
|
|
|
(2,425,785
|
)
|
|
B
|
Goldman Sachs International
|
|
K. Hovnanian
Enterprises, Inc.
|
|
|
Sell
|
|
|
|
4.690
|
|
|
09/20/12
|
|
|
5,000
|
|
|
|
0
|
|
|
|
(2,420,147
|
)
|
|
B−
|
23
See Notes to Financial
Statements
Van Kampen
Dynamic Credit Opportunities Fund
Portfolio of
Investments n January 31,
2009
(Unaudited) continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pay/
|
|
|
|
|
|
|
|
|
|
Credit
|
|
|
|
|
|
|
Receive
|
|
|
|
Notional
|
|
|
|
|
|
Rating of
|
|
|
Reference
|
|
Buy/Sell
|
|
Fixed
|
|
Expiration
|
|
Amount
|
|
Upfront
|
|
|
|
Reference
|
Counterparty
|
|
Entity
|
|
Protection
|
|
Rate
|
|
Date
|
|
(000)
|
|
Payments
|
|
Value
|
|
Equity*
|
|
Goldman Sachs International
|
|
LCDX9
|
|
|
Sell
|
|
|
|
2.250
|
%
|
|
12/20/12
|
|
$
|
48,500
|
|
|
$
|
(3,831,500
|
)
|
|
$
|
(11,525,419
|
)
|
|
NR
|
Goldman Sachs International
|
|
LCDX.NA.10
|
|
|
Sell
|
|
|
|
3.250
|
|
|
12/20/12
|
|
|
58,200
|
|
|
|
(5,410,600
|
)
|
|
|
(12,862,119
|
)
|
|
NR
|
Goldman Sachs International
|
|
M-Real Oyj
|
|
|
Sell
|
|
|
|
3.450
|
|
|
09/20/09
|
|
|
6,402
|
|
|
|
0
|
|
|
|
(1,267,084
|
)
|
|
CCC+
|
Goldman Sachs International
|
|
Peermont
Global
|
|
|
Sell
|
|
|
|
3.500
|
|
|
09/20/12
|
|
|
6,402
|
|
|
|
0
|
|
|
|
(1,454,690
|
)
|
|
B
|
Goldman Sachs International
|
|
Texas
Competitive
Electric
Holdings
Company, LLC
|
|
|
Sell
|
|
|
|
2.850
|
|
|
06/20/10
|
|
|
5,000
|
|
|
|
0
|
|
|
|
(692,014
|
)
|
|
B−
|
Goldman Sachs International
|
|
UPC Holding
|
|
|
Sell
|
|
|
|
3.450
|
|
|
09/20/12
|
|
|
6,402
|
|
|
|
0
|
|
|
|
(417,584
|
)
|
|
NR
|
UBS Securities, AG
|
|
Rank Group
Finance
|
|
|
Sell
|
|
|
|
4.250
|
|
|
12/20/12
|
|
|
12,804
|
|
|
|
0
|
|
|
|
(352,193
|
)
|
|
B+
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Credit Default Swaps
|
|
$
|
286,732
|
|
|
$
|
(12,041,850
|
)
|
|
$
|
(67,815,872
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NRNot Rated
|
|
|
*
|
|
Credit Rating as issued by Standard
and Poors.
|
Swap Collateral
Pledged to Counterparty
|
|
|
|
|
Goldman Sachs International
|
|
|
41,615,000
|
|
UBS AG
|
|
|
8,553,000
|
|
Citi Global Markets
|
|
|
7,271,000
|
|
Bank of America
|
|
|
5,888,500
|
|
Credit Suisse
|
|
|
2,198,000
|
|
Deutsche Bank AG
|
|
|
1,464,000
|
|
|
|
|
|
|
Total Swap Collateral Pledged
|
|
$
|
66,989,500
|
|
|
|
|
|
|
Total Swap Agreements
|
|
$
|
(826,372
|
)
|
|
|
|
|
|
24
See Notes to Financial
Statements
Van Kampen
Dynamic Credit Opportunities Fund
Portfolio of
Investments n January 31,
2009
(Unaudited) continued
Forward foreign
currency contracts outstanding as of January 31, 2009
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
|
|
|
|
|
Current
|
|
Appreciation/
|
|
|
In Exchange
for
|
|
Value
|
|
Depreciation
|
|
Long Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
Euro
|
|
|
|
|
|
|
|
|
|
|
|
|
2,635,000 expiring 02/24/09
|
|
US$
|
|
|
|
$
|
3,372,767
|
|
|
$
|
(76,185
|
)
|
951,241 expiring 02/24/09
|
|
US$
|
|
|
|
|
1,217,576
|
|
|
|
(16,088
|
)
|
3,981,653 expiring 02/24/09
|
|
US$
|
|
|
|
|
5,096,465
|
|
|
|
(45,441
|
)
|
1,780,000 expiring 02/24/09
|
|
US$
|
|
|
|
|
2,278,377
|
|
|
|
(81,369
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Long Contracts
|
|
|
|
|
|
|
|
|
|
|
(219,083
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
Euro
|
|
|
|
|
|
|
|
|
|
|
|
|
215,425,864 expiring 02/24/09
|
|
US$
|
|
|
|
|
275,742,381
|
|
|
|
6,099,277
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pound Sterling
|
|
|
|
|
|
|
|
|
|
|
|
|
1,433,607 expiring 02/24/09
|
|
US$
|
|
|
|
|
2,076,895
|
|
|
|
3,699
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Short Contracts
|
|
|
|
|
|
|
|
|
|
|
6,102,976
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Forward Foreign Currency Contracts
|
|
|
|
|
|
|
|
|
|
$
|
5,883,893
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratings
Allocation as of 1/31/09 (Unaudited)
|
|
|
|
|
BBB/Baa
|
|
|
1.5%
|
|
BB/Ba
|
|
|
20.8%
|
|
B/B
|
|
|
40.2%
|
|
CCC/Caa
|
|
|
8.5%
|
|
CC/Ca
|
|
|
0.3%
|
|
C/C
|
|
|
0.4%
|
|
Non-Rated
|
|
|
28.3%
|
|
Ratings allocations are as a percentage of debt obligations.
Ratings allocations based upon ratings as issued by Standard and
Poors and Moodys, respectively. Bank Loans rated
below BBB by Standard and Poors or Baa by Moodys are
considered to be below investment grade.
25
See Notes to Financial
Statements
Van Kampen
Dynamic Credit Opportunities Fund
Portfolio of
Investments n January 31,
2009
(Unaudited) continued
Summary of
Long-Term Investments by Country Classification
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of
|
|
|
|
|
|
|
Long-Term
|
|
Country
|
|
Value
|
|
|
Investments
|
|
|
United States
|
|
|
534,864,290
|
|
|
|
63.7
|
%
|
Germany
|
|
|
105,425,145
|
|
|
|
12.5
|
|
Sweden
|
|
|
33,362,740
|
|
|
|
4.0
|
|
United Kingdom
|
|
|
30,030,895
|
|
|
|
3.6
|
|
Ireland
|
|
|
29,488,890
|
|
|
|
3.5
|
|
Belgium
|
|
|
17,784,755
|
|
|
|
2.1
|
|
Greece
|
|
|
17,573,488
|
|
|
|
2.1
|
|
Australia
|
|
|
16,047,500
|
|
|
|
1.9
|
|
Luxembourg
|
|
|
14,320,000
|
|
|
|
1.7
|
|
Bulgaria
|
|
|
10,563,299
|
|
|
|
1.3
|
|
Netherlands
|
|
|
10,409,771
|
|
|
|
1.2
|
|
Canada
|
|
|
6,104,991
|
|
|
|
0.7
|
|
Hungary
|
|
|
5,951,968
|
|
|
|
0.7
|
|
Cayman Islands
|
|
|
4,823,386
|
|
|
|
0.6
|
|
Spain
|
|
|
2,986,367
|
|
|
|
0.4
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
839,737,485
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
26
See Notes to Financial
Statements
Van Kampen
Dynamic Credit Opportunities Fund
Financial Statements
Statement
of Assets and Liabilities
January 31, 2009
(Unaudited)
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
Total Investments (Cost $1,504,927,727)
|
|
$
|
876,952,844
|
|
|
|
Restricted Cash
|
|
|
1,566,000
|
|
|
|
Receivables:
|
|
|
|
|
|
|
Investments Sold
|
|
|
13,667,518
|
|
|
|
Interest
|
|
|
12,863,566
|
|
|
|
Swap Contracts
|
|
|
10,307,371
|
|
|
|
Forward Foreign Currency Contracts
|
|
|
6,102,976
|
|
|
|
Other
|
|
|
862,412
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
|
922,322,687
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
Payables:
|
|
|
|
|
|
|
Borrowings
|
|
|
275,000,000
|
|
|
|
Investments Purchased
|
|
|
7,112,500
|
|
|
|
Investment Advisory Fee
|
|
|
944,987
|
|
|
|
Income Distributions
|
|
|
845,172
|
|
|
|
Other Affiliates
|
|
|
409,303
|
|
|
|
Swap Contracts
|
|
|
11,133,743
|
|
|
|
Unfunded Commitments
|
|
|
9,562,206
|
|
|
|
Custodian Bank
|
|
|
2,183,865
|
|
|
|
Accrued Interest Expense
|
|
|
341,038
|
|
|
|
Forward Foreign Currency Contracts
|
|
|
219,083
|
|
|
|
Trustees Deferred Compensation and Retirement Plans
|
|
|
35,511
|
|
|
|
Accrued Expenses
|
|
|
818,112
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
|
|
|
308,605,520
|
|
|
|
|
|
|
|
|
|
|
Net Assets
|
|
$
|
613,717,167
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value Per Common Share ($613,717,167 divided by
74,005,236 shares outstanding)
|
|
$
|
8.29
|
|
|
|
|
|
|
|
|
|
|
Net Assets Consist of:
|
|
|
|
|
|
|
Common Shares ($.01 par value with an unlimited number of
shares authorized, 74,005,236 shares issued
and outstanding)
|
|
$
|
740,052
|
|
|
|
Paid in Surplus
|
|
|
1,411,907,128
|
|
|
|
Accumulated Undistributed Net Investment Income
|
|
|
(38,522,554
|
)
|
|
|
Accumulated Net Realized Loss
|
|
|
(72,267,002
|
)
|
|
|
Net Unrealized Depreciation
|
|
|
(688,140,457
|
)
|
|
|
|
|
|
|
|
|
|
Net Assets
|
|
$
|
613,717,167
|
|
|
|
|
|
|
|
|
|
|
27
See Notes to Financial
Statements
Van Kampen
Dynamic Credit Opportunities Fund
Financial
Statements continued
Statement
of Operations
For the Six Months Ended
January 31, 2009 (Unaudited)
|
|
|
|
|
|
|
Investment Income:
|
|
|
|
|
|
|
Interest
|
|
$
|
62,674,027
|
|
|
|
Other
|
|
|
1,026,807
|
|
|
|
|
|
|
|
|
|
|
Total Income
|
|
|
63,700,834
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
Investment Advisory Fee
|
|
|
7,904,210
|
|
|
|
Credit Line
|
|
|
2,568,354
|
|
|
|
Professional Fees
|
|
|
258,532
|
|
|
|
Custody
|
|
|
237,562
|
|
|
|
Accounting & Administrative Expenses
|
|
|
158,415
|
|
|
|
Reports to Shareholders
|
|
|
62,981
|
|
|
|
Transfer Agent
|
|
|
46,589
|
|
|
|
Registration Fees
|
|
|
32,016
|
|
|
|
Trustees Fees and Related Expenses
|
|
|
15,353
|
|
|
|
Other
|
|
|
26,883
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expense
|
|
|
11,310,895
|
|
|
|
Interest Expense
|
|
|
5,320,056
|
|
|
|
|
|
|
|
|
|
|
Total Expenses
|
|
|
16,630,951
|
|
|
|
|
|
|
|
|
|
|
Net Investment Income
|
|
$
|
47,069,883
|
|
|
|
|
|
|
|
|
|
|
Realized and Unrealized Gain/Loss:
|
|
|
|
|
|
|
Realized Gain/Loss:
|
|
|
|
|
|
|
Investments
|
|
$
|
(121,119,236
|
)
|
|
|
Forward Foreign Currency Contracts
|
|
|
70,184,303
|
|
|
|
Swap Contracts
|
|
|
213,274
|
|
|
|
Foreign Currency Transactions
|
|
|
(1,288,321
|
)
|
|
|
|
|
|
|
|
|
|
Net Realized Loss
|
|
|
(52,009,980
|
)
|
|
|
|
|
|
|
|
|
|
Unrealized Appreciation/Depreciation:
|
|
|
|
|
|
|
Beginning of the Period
|
|
|
(200,955,666
|
)
|
|
|
|
|
|
|
|
|
|
End of the Period:
|
|
|
|
|
|
|
Investments
|
|
|
(627,974,883
|
)
|
|
|
Forward Foreign Currency Contracts
|
|
|
5,883,893
|
|
|
|
Foreign Currency Translation
|
|
|
(713,239
|
)
|
|
|
Unfunded Commitments
|
|
|
(9,562,206
|
)
|
|
|
Swap Contracts
|
|
|
(55,774,022
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
(688,140,457
|
)
|
|
|
|
|
|
|
|
|
|
Net Unrealized Depreciation During the Period
|
|
|
(487,184,791
|
)
|
|
|
|
|
|
|
|
|
|
Net Realized and Unrealized Loss
|
|
$
|
(539,194,771
|
)
|
|
|
|
|
|
|
|
|
|
Net Decrease in Net Assets From Operations
|
|
$
|
(492,124,888
|
)
|
|
|
|
|
|
|
|
|
|
28
See Notes to Financial
Statements
Van Kampen
Dynamic Credit Opportunities Fund
Financial
Statements continued
Statements
of Changes in Net Assets (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
For The
|
|
For The
|
|
|
|
|
Six Months
Ended
|
|
Year Ended
|
|
|
|
|
January 31,
2009
|
|
July 31,
2008
|
|
|
|
|
|
|
From Investment Activities:
|
|
|
|
|
|
|
|
|
|
|
Operations:
|
|
|
|
|
|
|
|
|
|
|
Net Investment Income
|
|
$
|
47,069,883
|
|
|
$
|
106,542,295
|
|
|
|
Net Realized Loss
|
|
|
(52,009,980
|
)
|
|
|
(45,622,524
|
)
|
|
|
Net Unrealized Depreciation During the Period
|
|
|
(487,184,791
|
)
|
|
|
(161,987,204
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Net Assets from Operations
|
|
|
(492,124,888
|
)
|
|
|
(101,067,433
|
)
|
|
|
Distributions from Net Investment Income
|
|
|
(55,481,726
|
)
|
|
|
(117,202,092
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Change in Net Assets from Investment Activities
|
|
|
(547,606,614
|
)
|
|
|
(218,269,525
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From Capital Transactions:
|
|
|
|
|
|
|
|
|
|
|
Additional Cost from the 2007 Initial Public Offering
|
|
|
-0-
|
|
|
|
(252,820
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Change in Net Assets
|
|
|
(547,606,614
|
)
|
|
|
(218,522,345
|
)
|
|
|
Net Assets:
|
|
|
|
|
|
|
|
|
|
|
Beginning of the Period
|
|
|
1,161,323,781
|
|
|
|
1,379,846,126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of the Period (Including accumulated undistributed net
investment income of $(38,522,554) and
$(30,110,711), respectively)
|
|
$
|
613,717,167
|
|
|
$
|
1,161,323,781
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
29
See Notes to Financial
Statements
Van Kampen
Dynamic Credit Opportunities Fund
Financial
Statements continued
Statement
of Cash Flows
For the Six Months Ended
January 31, 2009 (Unaudited)
|
|
|
|
|
|
|
Change in Net Assets from Operations
|
|
$
|
(492,124,888
|
)
|
|
|
|
|
|
|
|
|
|
Adjustments to Reconcile the Change in Net Assets from
Operations to Net Cash Provided by Operating Activities:
|
|
|
|
|
|
|
Purchases of Investments
|
|
|
(152,327,519
|
)
|
|
|
Principal Repayments/Sales of Investments
|
|
|
437,800,966
|
|
|
|
Net Sales of Short-Term Investments
|
|
|
(24,150,544
|
)
|
|
|
Purchases of Foreign Currency
|
|
|
(1,739,980,918
|
)
|
|
|
Sales of Foreign Currency
|
|
|
1,826,010,091
|
|
|
|
Amortization of Loan Fees
|
|
|
1,275,427
|
|
|
|
Net Loan Fees Received
|
|
|
20,000
|
|
|
|
Accretion of Discount
|
|
|
(5,691,304
|
)
|
|
|
Net Realized Loss on Investments
|
|
|
121,119,236
|
|
|
|
Net Realized Loss on Foreign Currency Transactions
|
|
|
1,288,321
|
|
|
|
Net Realized Gain on Forward Foreign Currency Transactions
|
|
|
(70,184,303
|
)
|
|
|
Net Change in Unrealized Depreciation on Investments
|
|
|
441,692,229
|
|
|
|
Net Change in Unrealized Depreciation on Foreign Currency
|
|
|
(56,649
|
)
|
|
|
Net Change in Unrealized Appreciation on Forward Foreign
Currency Contracts
|
|
|
(9,664,514
|
)
|
|
|
Decrease in Restricted Cash
|
|
|
1,763,790
|
|
|
|
Decrease in Interest Receivables
|
|
|
2,968,717
|
|
|
|
Increase in Other Assets
|
|
|
(800,985
|
)
|
|
|
Increase in Receivable for Investments Sold
|
|
|
(6,819,023
|
)
|
|
|
Increase in Accrued Expenses
|
|
|
305,579
|
|
|
|
Increase in Distributor and Affiliates Payable
|
|
|
147,302
|
|
|
|
Decrease in Investment Advisory and Administrative Fees
|
|
|
(834,575
|
)
|
|
|
Increase in Deferred Compensation and Retirement Plans
|
|
|
7,514
|
|
|
|
Decrease in Accrued Interest Expenses
|
|
|
(850,165
|
)
|
|
|
Increase in Custodian Bank Payable
|
|
|
2,183,865
|
|
|
|
Decrease in Investments Purchased Payable
|
|
|
(47,824,230
|
)
|
|
|
Net Change in Unrealized Depreciation in Swap Contracts
|
|
|
48,067,679
|
|
|
|
Net Change in Upfront Payments on Swap Contracts
|
|
|
3,596,600
|
|
|
|
Net Change in Collateral for Swap Contracts
|
|
|
(51,866,500
|
)
|
|
|
Net Change in Unfunded Commitments
|
|
|
5,779,772
|
|
|
|
|
|
|
|
|
|
|
Total Adjustments
|
|
|
782,975,859
|
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by Operating Activities
|
|
|
290,850,971
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From Financing Activities
|
|
|
|
|
|
|
Cash Distributions Paid
|
|
|
(55,850,971
|
)
|
|
|
Proceeds from and Repayments of Borrowings
|
|
|
(235,000,000
|
)
|
|
|
|
|
|
|
|
|
|
Net Cash Used for Financing Activities
|
|
|
(290,850,971
|
)
|
|
|
|
|
|
|
|
|
|
Net Decrease in Cash
|
|
|
-0-
|
|
|
|
Cash at the Beginning of the Period
|
|
|
-0-
|
|
|
|
|
|
|
|
|
|
|
Cash at the End of the Period
|
|
$
|
-0-
|
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosures of Cash Flow Information
|
|
|
|
|
|
|
Cash Paid During the Year for Interest
|
|
$
|
6,170,221
|
|
|
|
|
|
|
|
|
|
|
30
See Notes to Financial
Statements
Van Kampen
Dynamic Credit Opportunities Fund
Financial
Highlights (Unaudited)
The
following schedule presents financial highlights for one common
share of the Fund outstanding throughout the periods
indicated.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 26, 2007
|
|
|
|
|
|
|
(Commencement
|
|
|
Six Months
Ended
|
|
Year Ended
|
|
of Operations)
to
|
|
|
January 31,
2009
|
|
July 31,
2008
|
|
July 31,
2007
|
|
|
|
|
Net Asset Value, Beginning of the Period
|
|
$
|
15.69
|
|
|
$
|
18.65
|
|
|
$
|
19.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Investment Income (a)
|
|
|
0.64
|
|
|
|
1.44
|
|
|
|
0.08
|
|
Net Realized and Unrealized Loss
|
|
|
(7.29
|
)
|
|
|
(2.82
|
)
|
|
|
(0.53
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total from Investment Operations
|
|
|
(6.65
|
)
|
|
|
(1.38
|
)
|
|
|
(0.45
|
)
|
Less Distributions from Net Investment Income
|
|
|
(0.75
|
)
|
|
|
(1.58
|
)
|
|
|
-0-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value, End of the Period
|
|
$
|
8.29
|
|
|
$
|
15.69
|
|
|
$
|
18.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Share Market Price at End of the Period
|
|
$
|
7.83
|
|
|
$
|
13.30
|
|
|
$
|
19.75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return (b)
|
|
|
35.90%
|
*
|
|
|
25.46%
|
|
|
|
1.25%
|
*
|
Net Assets at End of Period (In millions)
|
|
$
|
613.7
|
|
|
$
|
1,161.3
|
|
|
$
|
1,379.8
|
|
Ratio to Average Net Assets
excluding Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expense
|
|
|
2.63%
|
|
|
|
1.79%
|
|
|
|
1.54%
|
|
Interest Expense
|
|
|
1.24%
|
|
|
|
0.99%
|
|
|
|
N/A
|
|
Gross Expense
|
|
|
3.87%
|
|
|
|
2.78%
|
|
|
|
1.54%
|
|
Net Investment Income
|
|
|
10.95%
|
|
|
|
8.38%
|
|
|
|
4.58%
|
|
Portfolio Turnover (c)
|
|
|
12%
|
*
|
|
|
43%
|
|
|
|
0%
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio to Average Net Assets
including Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expense
|
|
|
1.79%
|
|
|
|
1.36%
|
|
|
|
N/A
|
|
Interest Expense
|
|
|
0.84%
|
|
|
|
0.75%
|
|
|
|
N/A
|
|
Gross Expense
|
|
|
2.63%
|
|
|
|
2.11%
|
|
|
|
N/A
|
|
Net Investment Income
|
|
|
7.46%
|
|
|
|
6.37%
|
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior Indebtedness:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Borrowing Outstanding (In thousands)
|
|
$
|
275,000
|
|
|
$
|
510,000
|
|
|
$
|
-0-
|
|
Asset Coverage per $1,000 Unit of
Senior Indebtedness (d)
|
|
$
|
3,232
|
|
|
$
|
3,277
|
|
|
|
N/A
|
|
|
|
|
*
|
|
Non-Annualized
|
|
(a)
|
|
Based on average shares outstanding.
|
(b)
|
|
Total return based on common share
market price 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
Funds dividend reinvestment plan, and sale of all shares
at the closing common share market price at the end of the
period indicated.
|
(c)
|
|
Calculation includes the proceeds
from principal repayments and sales of variable rate senior loan
interests.
|
(d)
|
|
Calculated by subtracting the
Funds total liabilities (not including the borrowings)
from the Funds total assets and dividing by the total
number of senior indebtedness units, where one unit equals
$1,000 of senior indebtedness.
|
N/A=Not Applicable
31
See Notes to Financial
Statements
Van Kampen
Dynamic Credit Opportunities Fund
Notes to Financial
Statements n January 31,
2009 (Unaudited)
1. Significant
Accounting Policies
Van Kampen Dynamic Credit Opportunities Fund (the
Fund) is a statutory trust organized under the laws
of the State of Delaware pursuant to an Agreement and
Declaration of Trust dated March 15, 2007. The Fund is
registered as a diversified, closed-end management investment
company under the Investment Company Act of 1940, as amended
(the 1940 Act). The Funds investment objective
is to seek a high level of current income, with a secondary
objective of capital appreciation. The Fund seeks to achieve its
investment objectives by opportunistically investing primarily
in credit securities of issuers which operate in a variety of
industries and geographic regions located throughout the world.
The Fund will invest in a combination of (i) senior secured
floating rate and fixed rate loans; (ii) second lien or
other subordinated or unsecured floating rate loans or debt;
(iii) other debt obligations, including high yield, high
risk obligations; and (iv) structured products including
collateralized debt and loan obligations. The Fund intends to
borrow money for investment purposes which will create the
opportunity for enhanced return, but also should be considered a
speculative technique and may increase the Funds
volatility.
The following is a summary of significant accounting policies
consistently followed by the Fund in the preparation of its
financial statements. The preparation of financial statements in
conformity with accounting principles generally accepted in the
United States of America requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual
results could differ from those estimates.
A. Security Valuation The Funds
loans and debt obligations are valued by the Fund following
valuation guidelines established and periodically reviewed by
the Funds Board of Trustees. Under the valuation
guidelines, loans and debt obligations for which reliable market
quotes are readily available are valued at the mean of such bid
and ask quotes. Where reliable market quotes are not readily
available, loans and debt obligations are valued, where
possible, using independent market indicators provided by
independent pricing sources approved by the Board of Trustees.
Other loans and debt obligations are valued by independent
pricing sources approved by the Board of Trustees based upon
pricing models developed, maintained and operated by those
pricing sources or valued by Van Kampen Asset Management
(the Adviser) by considering a number of factors
including consideration of market indicators, transactions in
instruments which the Adviser believes may be comparable
(including comparable credit quality, interest rate, interest
rate redetermination period and maturity), the credit worthiness
of the Borrower, the current interest rate, the period until
next interest rate redetermination and the maturity of such
loan. Consideration of comparable instruments may include
commercial paper, negotiable certificates of deposit and
short-term variable rate securities which have adjustment
periods comparable to the loans in the Funds portfolio.
The fair value of loans are reviewed and approved by the
Funds Valuation Committee and the Board of Trustees.
Forward foreign currency contracts are valued using quoted
foreign exchange rates. Credit default 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. Short-term loan participations are valued at cost in the
absence of any indication of impairment.
32
Van Kampen
Dynamic Credit Opportunities Fund
Notes to Financial
Statements n January 31,
2009 (Unaudited) continued
The Fund adopted Financial Accounting Standards Board Statement
of Financial Accounting Standards No. 157, Fair Value
Measurements (FAS 157), effective August 1, 2008.
In accordance with FAS 157, fair value is defined as the
price that the Fund would receive to sell an investment or pay
to transfer a liability in an orderly transaction with an
independent buyer in the principal market, or in the absence of
a principal market the most advantageous market for the
investment or liability. FAS 157 establishes a three-tier
hierarchy to distinguish between (1) inputs that reflect
the assumptions market participants would use in pricing an
asset or liability developed based on market data obtained from
sources independent of the reporting entity (observable inputs)
and (2) inputs that reflect the reporting entitys own
assumptions about the assumptions market participants would use
in pricing an asset or liability developed based on the best
information available in the circumstances (unobservable inputs)
and to establish classification of fair value measurements for
disclosure purposes. Various inputs are used in determining the
value of the Funds investments. The inputs are summarized
in the three broad levels listed below.
|
|
Level 1
|
quoted prices in active markets for identical investments
|
Level 2
|
other significant observable inputs (including quoted prices for
similar investments, interest rates, prepayment speeds, credit
risk, etc.)
|
Level 3
|
significant unobservable inputs (including the Funds own
assumptions in determining the fair value of investments)
|
The inputs or methodology used for valuing securities are not
necessarily an indication of the risk associated with investing
in those securities.
The following is a summary of the inputs used as of
January 31, 2009 in valuing the Funds investments
carried at value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in
|
|
|
|
|
|
|
Loans and
|
|
Other
Financial
|
|
|
Valuation
Inputs
|
|
Securities
|
|
Instruments*
|
|
Liabilities
|
|
Level 1Quoted Prices
|
|
$
|
-0-
|
|
|
$
|
-0-
|
|
|
$
|
-0-
|
|
Level 2Other Significant Observable Inputs
|
|
|
845,321,927
|
|
|
|
(61,931,979
|
)
|
|
|
(9,494,444
|
)
|
Level 3Significant Unobservable Inputs
|
|
|
31,630,917
|
|
|
|
-0-
|
|
|
|
(67,762
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
876,952,844
|
|
|
$
|
(61,931,979
|
)
|
|
$
|
(9,562,206
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
|
Other financial instruments include
forwards and swap contracts.
|
33
Van Kampen
Dynamic Credit Opportunities Fund
Notes to Financial
Statements n January 31,
2009 (Unaudited) continued
Following is a reconciliation of investments in which
significant unobservable inputs (Level 3) were used in
determining value:
|
|
|
|
|
|
|
|
|
|
|
Investments in
|
|
|
|
|
Loans and
|
|
|
|
|
Securities
|
|
Liabilities
|
|
Balance as of August 1, 2008
|
|
$
|
38,724,141
|
|
|
$
|
-0-
|
|
Accrued discounts/premiums
|
|
|
4,025
|
|
|
|
-0-
|
|
Realized gain/loss
|
|
|
(245,587
|
)
|
|
|
-0-
|
|
Change in unrealized appreciation/depreciation
|
|
|
(16,485,223
|
)
|
|
|
(67,762
|
)
|
Net purchases/sales
|
|
|
(4,904,947
|
)
|
|
|
-0-
|
|
Net transfers in and/or out of Level 3
|
|
|
14,538,508
|
|
|
|
-0-
|
|
|
|
|
|
|
|
|
|
|
Balance as of January 31, 2009
|
|
$
|
31,630,917
|
|
|
$
|
(67,762
|
)
|
|
|
|
|
|
|
|
|
|
Net change in Unrealized Appreciation/Depreciation from
Investments still held as of January 31, 2009
|
|
$
|
(16,485,223
|
)
|
|
|
|
|
B. Security Transactions Investment
transactions are recorded on a trade date basis. Realized gains
and losses are determined on an identified cost basis. Legal
expenditures that are expected to result in the restructuring of
or a plan of reorganization for an investment are recorded as
realized losses. The Fund may purchase and sell securities on a
when-issued or delayed delivery basis,
with settlement to occur at a later date. The value of the
security so purchased is subject to market fluctuations during
this period. The Fund will segregate assets with the custodian
having an aggregate value at least equal to the amount of the
when-issued or delayed delivery purchase commitments until
payment is made. At January 31, 2009, the Fund had no
when-issued or delayed delivery purchase commitments.
The Fund may invest in repurchase agreements, which are
short-term investments in which the Fund acquires ownership of a
debt security and the seller agrees to repurchase the security
at a future time and specified price. Repurchase agreements are
fully collateralized by the underlying debt security. The Fund
will make payment for such securities only upon physical
delivery or evidence of book entry transfer to the account of
the custodian bank. The seller is required to maintain the value
of the underlying security at not less than the repurchase
proceeds due the Fund.
C. Investment Income Dividend income is
recorded on the ex-dividend date and interest income is recorded
on an accrual basis. Facility fees received are treated as
market discounts. Market premiums are amortized and discounts
are accreted over the stated life of each applicable loan or
other debt obligation. Other income is comprised primarily of
amendment fees which are recorded when received. Amendment fees
are earned as compensation for agreeing to changes in loan
agreements.
D. Federal Income Taxes It is the
Funds policy to comply with the requirements of Subchapter
M of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no provision for
federal income taxes is required. The Fund may be subject to
taxes imposed by countries in which it invests. Such taxes are
generally based on income earned or gains realized or
repatriated. Taxes are accrued and applied to net investment
income, net realized capital gains and net unrealized
appreciation, as applicable as the income is earned or capital
gains are recorded. Financial Accounting Standards Board
Interpretation No. 48 Accounting for
34
Van Kampen
Dynamic Credit Opportunities Fund
Notes to Financial
Statements n January 31,
2009 (Unaudited) continued
Uncertainty in Income
Taxes
(FIN 48) sets forth a minimum threshold for financial
statement recognition of the benefit of a tax position taken or
expected to be taken in a tax return. Management has concluded
there are no significant uncertain tax positions that would
require recognition in the financial statements. If applicable,
the Fund recognizes interest accrued related to unrecognized tax
benefits in Interest Expense and penalties in
Other expenses on the Statement of Operations. The
Fund files tax returns with the U.S. Internal Revenue
Service and various states. Generally, each of the tax years in
the two year period ended July 31, 2008, remains subject to
examination by taxing authorities.
The Fund intends to utilize provisions of the federal income tax
laws which allow it to carry a realized capital loss forward for
eight years following the year of the loss and offset these
losses against any future realized capital gains. At
July 31, 2008, the Fund had an accumulated capital loss
carryforward for tax purposes of $431,578 which will expire
according to the following schedule:
|
|
|
|
|
|
|
|
|
Amount
|
|
|
|
Expiration
|
|
$
|
431,578
|
|
|
|
|
|
July 31, 2016
|
|
At January 31, 2009, the cost and related gross unrealized
appreciation and depreciation are as follows:
|
|
|
|
|
|
|
Cost of investments for tax purposes
|
|
$
|
1,496,172,265
|
|
|
|
|
|
|
|
|
|
|
Gross tax unrealized appreciation
|
|
$
|
23,984,843
|
|
|
|
Gross tax unrealized depreciation
|
|
|
(643,204,264
|
)
|
|
|
|
|
|
|
|
|
|
Net tax unrealized depreciation on investments
|
|
$
|
(619,219,421
|
)
|
|
|
|
|
|
|
|
|
|
E. Distribution of Income and Gains The
Fund intends to declare and pay monthly dividends from net
investment income. Net realized gains, if any, are distributed
at least annually to its shareholders. Distributions from net
realized gains for book purposes may include short term capital
gains, which are included as ordinary income for tax purposes.
The tax character of distributions paid during the year ended
July 31, 2008 and the period from June 26, 2007
(Commencement of Operations) to July 31, 2007, was as
follows:
|
|
|
|
|
|
|
|
|
|
|
2008
|
|
2007
|
|
Distributions paid from:
|
|
|
|
|
|
|
|
|
Ordinary income
|
|
$
|
115,987,675
|
|
|
$
|
-0-
|
|
|
|
|
|
|
|
|
|
|
As of July 31, 2008, the components of distributable
earnings on a tax basis were as follows:
|
|
|
|
|
Undistributed ordinary income
|
|
$
|
441,291
|
|
Net realized gains or losses may differ for financial reporting
and tax purposes primarily as a result of the deferral of gains
resulting from wash sale transactions and gains and losses
recognized on securities for tax purposes but not for book
purposes.
35
Van Kampen
Dynamic Credit Opportunities Fund
Notes to Financial
Statements n January 31,
2009 (Unaudited) continued
F. Foreign Currency Translation and Foreign
Investments The Fund may enter into forward foreign
currency exchange contracts to attempt to protect securities and
related receivables and payables against changes in future
foreign currency exchange rates. A currency exchange contract is
an agreement between two parties to buy or sell currency at a
set price on a future date. The market value of the contract
will fluctuate with changes in currency exchange rates. The
contract is
marked-to-market
daily and the change in market value is recorded by the Fund as
unrealized appreciation/depreciation on foreign currency
translation.
Assets and liabilities denominated in foreign currencies and
commitments under forward foreign currency contracts are
translated into U.S. dollars at the mean of the quoted bid
and asked prices of such currencies against the
U.S. dollar. Purchases and sales of portfolio securities
are translated at the rate of exchange prevailing when such
securities were acquired or sold. Realized and unrealized gains
and losses on securities resulting from changes in exchange
rates are not segregated for financial reporting purposes from
amounts arising from the changes in market prices of securities.
Realized gain and loss on foreign currency transactions on the
Statement of Operations includes the net realized amount from
the sale of foreign currency and the amount realized between
trade date and settlement date on securities transactions.
Income and expenses are translated at rates prevailing when
accrued. Risks may arise upon entering into these contracts from
the potential inability of counterparties to meet the terms of
their contracts. Risks may also arise from the unanticipated
movements in the value of a foreign currency relative to the
U.S. dollar.
2. Investment
Advisory Agreement and Other Transactions with
Affiliates
Under the terms of the Funds Investment Advisory
Agreement, the Adviser will provide certain
day-to-day
investment management services to the Fund for an annual fee of
1.25% of the average daily managed assets. Average daily managed
assets are defined as the average daily total asset value of the
Fund minus the sum of accrued liabilities other than the
aggregate amount of borrowings for investment purposes. The
Adviser has entered into a subadvisory agreement with Avenue
Europe International Management, L.P. (the
Subadviser). Under the subadvisory agreement, the
Adviser retains the Subadviser to manage that portion of the
Funds assets that are allocated to the Subadviser. The
Adviser will pay the Subadviser an annual fee, payable monthly,
in an amount equal to 1.25% of the portion of the managed assets
of the Fund managed by the Subadviser.
For the six months ended January 31, 2009, the Fund
recognized expenses of approximately $137,000 representing legal
services provided by Skadden, Arps, Slate, Meagher &
Flom LLP, of which a trustee of the Fund is a partner of such
firm and he and his law firm provide legal services as legal
counsel to the Fund.
Under separate 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 Fund. The costs of these services are
allocated to each fund. For the six months ended
January 31, 2009, the Fund recognized expenses of
approximately $84,800 representing Van Kampen Investments
Inc.s or its affiliates (collectively
Van Kampen) cost of providing accounting and
legal services to the Fund as well as the salary, benefits and
related costs of the CCO and related support staff paid by
Van Kampen. Services provided pursuant to the Legal
Services agreement are reported as part of Professional
Fees on the Statement of Operations. Services provided
pursuant to the Accounting
36
Van Kampen
Dynamic Credit Opportunities Fund
Notes to Financial
Statements n January 31,
2009 (Unaudited) continued
and CCO Employment agreements are
reported as part of Accounting and Administrative
Expenses on the Statement of Operations.
Certain officers and trustees of the Fund are also officers and
directors of Van Kampen. The Fund does not compensate its
officers or trustees who are also officers of Van Kampen.
The Fund provides deferred compensation and retirement plans for
its Trustees who are not officers of Van Kampen. Under the
deferred compensation plan, Trustees may elect to defer all or a
portion of their compensation to a later date. Benefits under
the retirement plan are payable for a ten-year period and are
based upon each Trustees years of service to the Fund. The
maximum annual benefit per Trustee under the plan is $2,500.
At January 31, 2009, Van Kampen Investments Inc., an
affiliate of the Adviser, owned 5,236 shares of common
stock at an aggregate purchase price of $100,000.
During the period, the Fund owned shares of the following
affiliated companies. Affiliated companies are defined by the
1940 Act as those companies in which a Fund holds 5% or more of
the outstanding voting securities.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market
|
|
|
|
|
|
|
Dividend
|
|
Value
|
|
|
Name
|
|
Shares*
|
|
Income
|
|
1/31/2009
|
|
Cost
|
|
Axia,
Inc.Common Shares*
|
|
|
6,352
|
|
|
$
|
-0-
|
|
|
$
|
-0-
|
|
|
$
|
-0-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
|
Shares were acquired through the
restructuring of senior loan interests.
|
Affiliate transactions during the six months ended
January 31, 2009 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
|
|
|
Shares
|
|
Realized
|
|
|
|
|
as of
|
|
Gross
|
|
Gross
|
|
as of
|
|
Gain/
|
|
Dividend
|
Name
|
|
7/31/2008
|
|
Addition
|
|
Reduction
|
|
1/31/2009
|
|
(Loss)
|
|
Income
|
|
Axia, Inc.Common Shares
|
|
$
|
-0-
|
|
|
$
|
-0-
|
|
|
$
|
-0-
|
|
|
|
6,352
|
|
|
$
|
-0-
|
|
|
$
|
-0-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3. Capital
Transactions
The Board of Trustees have approved a share repurchase program
whereby the Fund 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.
For the six months ended January 31, 2009 there was no
activity in capital transactions.
The Fund is authorized to issue an unlimited number of common
shares of beneficial interest, par value $0.01 per share. The
Fund had no operations until June 26, 2007, other than
matters relating to its organization and registration and sale
and issuance to Van Kampen Investments Inc., an affiliate
of the Adviser, of 5,236 shares of common stock at an
aggregate purchase price of $100,000. The Adviser, on behalf of
the Fund, will incur all of the Funds organizational cost,
estimated at $10,000. The Adviser also has agreed to pay the
amount by which the offering costs of the Fund (other than the
sales load) exceed $0.04 per share of the Funds common
shares. On June 26, 2007, the Fund sold 71,000,000 common
shares in an initial public offering. Proceeds to the Fund were
$1,355,500,000 after deducting underwriting commissions and
estimated $600,000 of offering expenses. On July 23, 2007
the Fund sold 3,000,000 common shares, pursuant to an over
allotment agreement with the underwriters for net proceeds of
$57,300,000 after deducting underwriting commissions. For the
year ended
37
Van Kampen
Dynamic Credit Opportunities Fund
Notes to Financial
Statements n January 31,
2009 (Unaudited) continued
July 31, 2008, the Fund
incurred additional costs of $252,820 from the 2007 initial
public offering.
4. Investment
Transactions
During the period, the cost of purchases and proceeds from
investments sold and repaid, excluding short-term investments,
were $152,327,519 and $437,800,966, respectively.
5. Commitments
Pursuant to the terms of certain loan agreements, the Fund had
unfunded loan commitments of approximately $30,400,000 as of
January 31, 2009. The Fund intends to reserve against such
contingent obligations by designating cash, liquid securities
and liquid loans as a reserve. The unrealized depreciation on
these commitments of $9,562,206 as of January 31, 2009 and
is reported as Unfunded Commitments on the Statement
of Assets and Liabilities.
6. Borrowings
The Fund may utilize financial leverage to the maximum extent
allowable under the 1940 Act. Under the 1940 Act, a Fund
generally may not borrow money greater than
331/3%
of the Funds total assets.
The Fund had entered into a $750 million revolving credit
and security agreement. Effective October 16, 2008, this
credit line was reduced to $550 million. The revolving
credit agreement is secured by the assets of the Fund. In
connection with this agreement, for the six months ended
January 31, 2009, the Fund incurred fees of approximately
$2,568,400. For the six months ended January 31, 2009, the
average daily balance of borrowings under the revolving credit
and security agreement was $399,755,435 with a weighted average
interest rate of 2.60%.
7. Derivative
Financial Instruments
A derivative financial instrument in very general terms refers
to a security whose value is derived from the value
of an underlying asset, reference rate or index.
The Fund may use derivative instruments for a variety of
reasons, such as to attempt to protect the Fund against possible
changes in the market value of its portfolio or to generate
potential gain. All of the Funds portfolio holdings,
including derivative instruments, are marked to market each day
with the change in value reflected in unrealized appreciation/
depreciation. Risks may arise as a result of the potential
inability of the counterparties to meet the terms of their
contracts.
Summarized below are specific types of derivative financial
instruments used by the Fund.
A. Forward Foreign Currency
Contracts Forward foreign currency contracts are
commitments to purchase or sell a foreign currency at a future
date at a negotiated forward rate. The gain or loss arising from
the difference between the original value of the contract and
the closing value of such contract is included as a component of
realized gain/loss on forward foreign currency contracts.
B. Credit Default Swaps The Fund adopted
the provisions of the FASB Staff Position Paper
No. FAS 133-1
and
FIN 45-4,
Disclosures about Credit Derivatives and Certain Guarantees:
An Amendment of FASB Statement No. 133 and FASB
Interpretation No. 45 (FSP
FAS 133-1
and
38
Van Kampen
Dynamic Credit Opportunities Fund
Notes to Financial
Statements n January 31,
2009 (Unaudited) continued
FIN 45-4),
effective January 31, 2009. FSP
FAS 133-1
and
FIN 45-4
requires the seller of credit derivatives to provide additional
disclosure about its credit derivatives.
The Fund may enter into credit default swap contracts, a type of
credit derivative, for hedging purposes or to gain exposure to a
credit or index of credits in which the Fund may otherwise
invest. A credit default swap is an agreement between two
parties to exchange the credit risk of an issuer or index of
issuers. A buyer of a credit default swap is said to buy
protection by paying periodic fees in return for a contingent
payment from the seller if the issuer has a credit event such as
bankruptcy, a failure to pay outstanding obligations or
deteriorating credit while the swap is outstanding. A seller of
a credit default swap is said to sell protection and thus
collects the periodic fees and profits if the credit of the
issuer remains stable or improves while the swap is outstanding.
The seller in a credit default swap contract would be required
to pay an
agreed-upon
amount, to the buyer in the event of an adverse credit event of
the issuer. This
agreed-upon
amount approximates the notional amount of the swap as disclosed
in the table following the Portfolio of Investments and is
estimated to be the maximum potential future payment that the
seller could be required to make under the credit default swap
contract. In the event of an adverse credit event, the seller
generally does not have any contractual remedies against the
issuer or any other third party. However, if a physical
settlement is elected, the seller would receive the defaulted
credit and, as a result, become a creditor of the issuer.
The current credit rating of each individual issuer, if
available, is listed in the table following the Portfolio of
Investments and serves as an indicator of the current status of
the payment/performance risk of the credit derivative.
Alternatively, for credit default swaps on an index of credits
or non-rated issuers, the quoted market prices and current
values serve as an indicator of the current status of the
payment/performance risk of the credit derivative. Generally,
lower credit ratings and increasing market values, in absolute
terms, represent a deterioration of the credit and a greater
likelihood of an adverse credit event of the issuer.
The Fund accrues for the periodic fees on credit default swaps
on a daily basis with the net amount accrued recorded within
unrealized appreciation/depreciation of swap contracts. Upon
cash settlement of the periodic fees, the net amount is recorded
as realized gain/loss on swap contracts on the Statement of
Operations. Net unrealized gains are recorded as an asset or net
unrealized losses are reported as a liability on the Statement
of Assets and Liabilities. The change in value of the swap
contracts is reported as unrealized gains or losses on the
Statement of Operations. Payments received or made upon entering
into a credit default swap contract, if any, are recorded as
realized gain or loss on the Statement of Operations upon
termination or maturity of the swap. Credit default swaps may
involve greater risks than if a Fund had invested in the issuer
directly. Credit default swaps are subject to general market
risk, counterparty risk and credit risk.
Swap agreements are not entered into or traded on exchanges and
there is no central clearing or guaranty function for swaps.
Therefore, swaps are subject to the risk of default or
non-performance by the counterparty. If there is a default by
the counterparty to a swap agreement, the Fund will have
contractual remedies pursuant to the agreements related to the
transaction. Counterparties are required to pledge collateral
daily (based on the valuation of each swap) on behalf of the
Fund with a value approximately equal to the amount of any
unrealized gain. Reciprocally, when the Fund has an unrealized
loss on a swap contract, the Fund has instructed the custodian
to pledge cash or liquid securities as collateral with a value
approximately equal to the amount of the unrealized loss.
Collateral pledges are monitored
39
Van Kampen
Dynamic Credit Opportunities Fund
Notes to Financial
Statements n January 31,
2009 (Unaudited) continued
and subsequently adjusted if and
when the swap valuations fluctuate. Cash collateral is disclosed
in the table following the Portfolio of Investments. Cash
collateral has been offset against open swap contracts under the
provision of FASB Interpretation No. 39: Offsetting of
Amounts Related to Certain Contracts an interpretation of APB
Opinion No. 10 and FASB Statement No. 105 and are
included within Swap Contracts on the Statement of
Assets and Liabilities. For cash collateral received the Fund
pays a monthly fee to the counterparty based on the effective
rate for Federal Funds. This fee, when paid, is included within
realized loss on swap contracts on the Statement of Operations.
8. Indemnifications
The Fund enters into contracts that contain a variety of
indemnifications. The Funds maximum exposure under these
arrangements is unknown. However, the Fund has not had prior
claims or losses pursuant to these contracts and expects the
risk of loss to be remote.
9. Accounting
Pronouncement
On March 19, 2008, the FASB released Statement of Financial
Accounting Standards No. 161, Disclosures about
Derivative Instruments and Hedging Activities
(FAS 161). FAS 161 requires qualitative disclosures
about objectives and strategies for using derivatives,
quantitative disclosures about fair value amounts of and gains
and losses on derivative instruments, and disclosures about
credit-risk-related contingent features in derivative
agreements. The application of FAS 161 is required for
fiscal years and interim periods beginning after
November 15, 2008. At this time, management does not
believe the adoption of FAS 161 will impact the financial
statement amounts; however, additional footnote disclosures may
be required about the use of derivative instruments and hedging
items
10. Legal
Matters
The Fund is one of numerous defendants (Lenders)
that have been named in an adversary proceeding pending in the
Bankruptcy Court of the Southern District of Florida (the
Court). The action, entitled In re Tousa Inc., et
al., was filed on July 15, 2008, by the Official
Committee of Unsecured Creditors of home building companies to
which the Lenders loaned money through different lending
facilities. An amended complaint was filed on October 17,
2008. Plaintiff alleges that monies used to repay the Lenders
should be avoided as fraudulent and preferential transfers under
the bankruptcy laws. More specifically, Plaintiff alleges that
subsidiaries of the home building companies were allegedly
forced to become co-borrowers and guarantors of the monies used
to repay the Lenders, and that the subsidiaries did not receive
fair consideration or reasonably equivalent value when they
transferred the proceeds to repay the Lenders. Plaintiff seeks
to avoid the transfers and other equitable relief. The Fund and
the other Lenders are named as defendants in two separate
lending capacities; first, as lenders in a credit agreement (the
Credit Lenders); and second, as lenders in a term
loan (the Term Loan Lenders). The Fund, as Credit
Lender, moved to dismiss the amended complaint. The Court denied
the motion to dismiss on December 4, 2008. The Fund and the
other Credit Lenders filed a motion for leave to appeal the
dismissal, which was denied on February 23, 2009. Plaintiff
thereafter filed a Second Amended Complaint that was superseded
by a Third Amended Complaint. The Fund filed two answers to the
Third Amended Complaint in its respective capacities as a Credit
Lender and a Term Loan Lender. The Court has ordered that all
parties take part in a mediation to be held in March 2009.
40
Van Kampen
Dynamic Credit Opportunities Fund
Board of Trustees, Officers and Important Addresses
|
|
|
Board
of Trustees
David C. Arch
Jerry D. Choate
Rod Dammeyer
Linda Hutton Heagy
R. Craig Kennedy
Howard J Kerr
Jack E. Nelson
Hugo F. Sonnenschein
Wayne W. Whalen* Chairman
Suzanne H. Woolsey
Officers
Edward C. Wood III
President and Principal Executive Officer
Kevin Klingert
Vice President
Amy R. Doberman
Vice President
Stefanie V. Chang Yu
Vice President and Secretary
John L. Sullivan
Chief Compliance Officer
Stuart N. Schuldt
Chief Financial Officer and Treasurer
|
|
Investment
Adviser
Van Kampen Asset Management
522 Fifth Avenue
New York, New York 10036
Subadviser
Avenue-Europe International Management, L.P.
535 Madison Avenue, 15th Floor
New York, New York 10022
Custodian
State Street Bank
and Fund Company
One Lincoln Street
Boston, Massachusetts 02111
Transfer
Agent
Computershare Fund Company, N.A.
c/o Computershare Investor Services
P.O. Box 43078
Providence, Rhode Island 02940-3078
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 Fund, as defined in the Investment Company Act of 1940, as
amended.
|
41
Van
Kampen Dynamic Credit Opportunities Fund
An Important Notice Concerning Our
U.S.
Privacy Policy
We are required by
federal law to provide you with a copy of our Privacy Policy
annually.
This 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
and understand your concerns about safeguarding such
information. We strive to maintain the privacy of such
information while we help you achieve your financial objectives.
This Policy describes what nonpublic personal information we
collect about you, how we collect it, when we may share it with
others, and how others may use it. It discusses the steps you
may take to limit our sharing of information about you with
affiliated Van Kampen companies (affiliated
companies). It also discloses how you may limit our
affiliates use of shared information for marketing
purposes. Throughout this Policy, we refer to the nonpublic
information that personally identifies you or your accounts as
personal information.
1. What
Personal Information Do We Collect About
You?
To better serve you
and manage our business, it is important that we collect and
maintain accurate information about you. We obtain this
information from applications and other forms you submit to us,
from your dealings with us, from consumer reporting agencies and
from third parties and other sources. For example:
|
|
|
|
|
|
We collect
information such as your name, address,
e-mail
address, phone number and account title.
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Van
Kampen Dynamic Credit Opportunities Fund
An Important Notice Concerning Our
U.S. Privacy Policy continued
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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.
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We may obtain
information about your creditworthiness and credit history from
consumer reporting agencies.
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We may collect
background information from and through third-party vendors to
verify representations you have made and to comply with various
regulatory requirements.
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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 computers
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.
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2. When Do
We Disclose Personal Information We Collect About
You?
To provide you with
the products and services you request, to better serve you, to
manage our business and as otherwise required or permitted by
law, we may disclose personal information we collect about you
to other affiliated companies and to nonaffiliated third
parties.
A. Information
We Disclose to Our Affiliated
Companies. In
order to manage your account(s) effectively, including servicing
and processing your transactions, to let you know about products
and services offered by us and affiliated companies, to manage
our business, and as otherwise required or permitted by law, we
may disclose personal information to other affiliated companies.
Offers for products and services from affiliated companies are
developed under conditions designed to safeguard your personal
information.
B. Information
We Disclose to Third
Parties. We
do not disclose personal information that we collect about you
to nonaffiliated third parties except to enable them to provide
marketing services on our behalf, to perform joint marketing
agreements with other financial institutions, and as otherwise
required or permitted by law. For example, some instances where
we may disclose information about you to third
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Van
Kampen Dynamic Credit Opportunities Fund
An Important Notice Concerning Our
U.S. Privacy Policy continued
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 a nonaffiliated third party, 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.
4. How Can
You Limit the Sharing of Certain Types of Personal Information
With Affiliated
Companies?
We respect your
privacy and offer you choices as to whether we share with
affiliated companies personal information that was collected to
determine your eligibility for products and services you request
(eligibility information). Please note that, even if
you direct us not to share eligibility information with
affiliated companies (opt-out), we may still share
personal information, including eligibility information, with
those companies in circumstances excluded from the opt-out under
applicable law, such as to process transactions or to service
your account. We may also share certain other types of personal
information with affiliated companiessuch as your name,
address, telephone number,
e-mail
address and account number(s), and information about your
transactions and experiences with us.
5. How Can
You Limit the Use of Certain Types of Personal Information by
Affiliated Companies for
Marketing?
You may limit
affiliated companies from marketing their products or services
to you based on your personal information that they receive from
affiliated companies. This information includes your income,
assets and account history. Your choice to limit marketing
offers from affiliated companies will apply until you tell us to
change your choice.
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Van
Kampen Dynamic Credit Opportunities Fund
An Important Notice Concerning Our
U.S. Privacy Policy continued
If you wish to
opt-out of sharing and to limit marketing offers, you may do so
by:
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Calling us at
(800) 847-2424
Monday-Friday between 8 a.m. and 8 p.m. (ET)
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Writing to us at the
following address:
Van Kampen Privacy Department
Harborside Financial Center, Plaza Two, 3rd Floor
Jersey City, NJ 07311
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If you choose to
write to us, your written request should include your name,
address, telephone number and account number(s) to which the
opt-out applies and should not be sent with any other
correspondence. In order to process your request, we require
that the request be provided by you directly and not through a
third party.
If you have
previously notified us about your privacy preferences, it is not
necessary to do so again unless you decide to change your
preferences. Your opt-out preference will remain in effect with
respect to this Policy (as it may be amended) until you notify
us otherwise in writing. If you have a joint account, your
direction for us not to share this information with other
affiliated companies and for those affiliated companies not to
use your personal information for marketing will be applied to
all account holders on that account.
Please understand
that if you opt-out, you and any joint account holders may not
receive information about affiliated company products and
services that could help you manage your financial resources and
achieve your investment objectives.
If you hold more
than one account with Van Kampen, you may receive multiple
privacy policies from us, and would need to follow the
directions stated in each particular policy for each account you
have with us.
SPECIAL NOTICE TO
RESIDENTS OF
VERMONT
This section
supplements our Policy with respect to our individual clients
who have a Vermont address and supersedes anything to the
contrary in the above Policy with respect to those clients
only.
The State of Vermont
requires financial institutions to obtain your consent prior to
sharing personal information that they collect about you with
affiliated companies and nonaffiliated third parties other than
in certain limited circumstances. Except as permitted by law, we
will not share personal information we collect about you with
nonaffiliated third parties or other affiliated companies unless
you provide us with your written consent to share such
information (opt-in).
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Van
Kampen Dynamic Credit Opportunities Fund
An Important Notice Concerning Our
U.S. Privacy Policy continued
If you wish to
receive offers for investment products and services offered by
or through other affiliated companies, please notify us in
writing at the following address:
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Van Kampen
Privacy Department
Harborside Financial Center, Plaza Two, 3rd Floor
Jersey City, NJ 07311
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Your authorization
should include your name, address, telephone number and account
number(s) to which the opt-in applies and should not be sent
with any other correspondence. In order to process your
authorization, we require that the authorization be provided by
you directly and not through a third-party.
522
Fifth Avenue
New
York, New York 10036
www.vankampen.com
Copyright
©2009
Van Kampen Funds Inc.
All
rights reserved. Member FINRA/SIPC
VTASAN
3/09
IU09-01111P-Y01/09
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.
(a) Please refer to Item #1.
(b) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment
Companies.
Not applicable for semi-annual reports.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable for semi-annual reports.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated
Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. Controls and Procedures
(a) The Funds principal executive officer and principal financial officer have concluded that the
Funds disclosure controls and procedures are sufficient to ensure that information required to be
disclosed by the Fund in this Form N-CSRS was recorded, processed, summarized and reported within
the time periods specified in the Securities and Exchange Commissions 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 registrants 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 registrants 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 Dynamic Credit Opportunities Fund
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By:
Name:
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/s/ Edward C. Wood III
Edward C. Wood III
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Title:
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Principal Executive Officer |
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Date:
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March 19, 2009 |
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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.
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By:
Name:
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/s/ Edward C. Wood III
Edward C. Wood III
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Title:
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Principal Executive Officer |
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Date:
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March 19, 2009 |
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By:
Name:
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/s/ Stuart N. Schuldt
Stuart N. Schuldt
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Title:
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Principal Financial Officer |
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Date:
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March 19, 2009 |
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