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Van Kampen Equity Premium Income
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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. |
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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
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Total returns |
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Class A (VEPAX) |
without charge |
with max. 5.75%
sales charge |
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1-year |
5.41% |
-0.62% |
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Since Inception (6/26/06) |
10.54% |
6.30% |
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30-day SEC yield |
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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.
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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. |
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