Van Kampen Equity Premium Income

Time: 12 min 33 sec
* recorded 01/30/08

These comments were valid on the date the video was recorded. Markets move continuously. Ask your financial advisor for more up-to-date information.

Help Reach your Retirement Goals with Van Kampen Equity Premium Income Fund

Today, retirement is a chance to expand your horizons, to pursue interests and dreams deferred while in the working world.

To do that successfully, you need innovative solutions that can help accommodate either an increased need for income or the ability to help withstand equity market volatility.

By combining an actively managed portfolio of large-cap stocks with the writing of covered call options, the Van Kampen Equity Premium Income Fund may help you maintain an income stream and sustain your retirement lifestyle during various market conditions and interest rate environments.

A Fund to Consider in Today’s Market

At Van Kampen, we understand that economic uncertainty can be unsettling. We encourage you to discuss the following information with your financial advisor to determine if Equity Premium Income Fund may aid you in navigating today’s volatile markets.

  • Offers large-cap core exposure and utilizes an active option-writing strategy to help enhance current distributions
  • Downside risk may be mitigated through income earned from option premiums
  • Covered call strategy offers potential for long-term appreciation while minimizing volatility - which increases during down markets

Performance as of 12/31/07

 

Total returns

Class A (VEPAX)

without charge

with max. 5.75%
sales charge

1-year

5.41%

-0.62%

Since Inception (6/26/06)

10.54%

6.30%

30-day SEC yield

Class A

0.36%

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. Total returns assume reinvestment of dividends and capital gains. For the most recent month-end performance figures, please visit the fund performance section of the site or speak with your Van Kampen Wholesaler. Investment returns and principal value will fluctuate and fund shares, when redeemed, may be worth more or less than their original cost. The fund’s adviser has waived or reimbursed fees and expenses from time to time; absent such waivers/ reimbursements, the fund’s returns would have been lower.

A fund’s 30-day SEC yield consists of income but not capital gains for the entire portfolio. The formula is designated by the Securities and Exchange Commission (SEC). This standardized mandatory calculation is more frequently associated with bond funds. For an equity-based fund such as Equity Premium Income Fund, the distribution rate more closely reflects income and capital gains that investors have received and may be a better measure of the fund’s income-generating potential. Performance for other share classes will vary.

Van Kampen Equity Premium Income Fund gross expense ratio is 1.54% and the net expense ratio is 1.24% for Class A shares. The net expense ratio for this fund is lower than the gross expense ratio because certain fees have been voluntarily waived; this waiver may be terminated at any time. Expenses are as of the fund’s most recent prospectus.

Risk Considerations

 

There is no assurance that a mutual fund will achieve its investment objective. Funds are 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 fund shares may therefore be less than what you paid for them. Accordingly, you can lose money investing in this fund. Please be aware that this fund is subject to certain additional risks, including those associated with: Option writing strategy. In sharply rising markets, the fund is expected to under perform the same portfolio that does not employ a covered call option writing strategy. This underperformance in a sharply rising market could be significant. The fund’s covered call option writing strategy may not fully protect it against declines in the value of the market. Foreign securities. The fund may invest in foreign securities; should it do so, the portfolio may be subject to additional currency, political, economic, and market risks. Return of capital risk. In adverse market conditions, a portion of the fund’s monthly distributions may constitute a return of part of your original investment or a “return of capital.” Such return of capital distributions will decrease the fund’s assets and may increase the fund’s expense ratio. Derivative instruments. Derivatives can be illiquid, may disproportionately increase losses and may have a potentially large negative impact on the fund's performance.

Van Kampen does not provide tax advice. The tax information contained herein is general and is not exhaustive by nature. It was not intended or written to be used, and it cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer under U.S. federal tax laws. Federal and state tax laws are complex and constantly changing. You should always consult your own legal or tax advisor for information concerning your individual situation.

1The distribution rate is calculated by taking total distributions (capital gains and income) and dividing by the average net assets for the month. The distribution rate is not intended to predict future performance and will fluctuate more than the 30- day SEC yield depending on the success of the Fund's option strategy. The distribution rate is subject to change at any time. The distribution rate is calculated at NAV.

FUND FACTS

Objective
Seeks current income with a secondary investment objective of long-term capital appreciation.

Portfolio:
Invests primarily in a portfolio of equity securities of U.S. issuers and utilizes an option-writing strategy to enhance current distributions.
 

 


Distribution Rate

6.45% (for Class A shares as of 01/31/08)1
 

 


Symbols

Class A: VEPAX
Class B: VEPBX
Class C: VEPCX
 

 


Materials

Prospectus

Income Diversification Strategy

Retirement: Realities & Possibilities
 

 


Please consider the investment objectives, risks, charges and expenses of the fund(s) carefully before investing. The prospectus contains this and other information about the fund(s). To obtain a prospectus, contact your financial advisor or download and/or order. Please read the prospectus carefully before investing.

Not FDIC Insured—Offer Not Bank Guaranteed—May Lose Value
Not Insured By Any Federal Government Agency—Not A Deposit

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