Van Kampen Revises Low Account Balance Policy to Curb Fund Expenses

Van Kampen Investments is revising its low-balance account policy for all Van Kampen Funds. The new policy will be implemented in 2007.

Van Kampen is revising its policies as they pertain to:

• Initial investment minimums
• Subsequent investment minimums
• Annual low balance account maintenance fees

These new policies are designed to help curb fund expenses and offset the disproportionate costs low-balance accounts can place on the general shareholder population.

The new minimum amount needed to open a new account will be $1,000 for non-retirement accounts, $500 for retirement accounts, or $50 if a systematic investment plan is established at the time an account is opened. Subsequent investment minimums for all account types must be at least $50.An account that does not achieve and/or maintain a minimum balance of $750 will be subject to an annual $12 low-balance account maintenance fee, which we will assess in November 2007. The application of this fee is subject to certain exclusions, so please refer to your fund’s related supplement or prospectus update.

Low Account Balance Policy

	Non-Retirement	Retirement Accounts	Systematic Investments Accounts
Minimum Initial Investment	$1,000	$500	$50
Minimum Subsequent Investment	$50	$50	$50
Low Balance Account Fees	$12 annual fee for accounts less than $750	$12 annual fee for accounts less than $750	$12 annual fee for accounts less than $750 and active for more than 1 year

As part of our effort to reduce expenses, and in conjunction with our new policy, we reserve the right to conduct involuntary redemptions for accounts worth less than $500. Any affected shareholders will receive a minimum of 60 days notice before such an event and, upon redemption, shareholders will receive a check for the full value of the affected account (as of the redemption date). Note: a redemption may cause a taxable event. Shareholders should consult their tax advisors and review their individual situations.

Please keep in mind: Shareholders who wish to avoid potential account liquidation may want to consider alternative options, which may include adding to an existing investment and/or consolidating accounts. See the Frequently Asked Questions below for additional information.

We encourage shareholders to review their account information and contact their financial advisors with any questions.

As previously noted, the revised policy will also be outlined in forthcoming prospectus updates and/or prospectus supplements. Shareholders are encouraged to review these documents upon receipt.

Frequently Asked Questions

What defines a low-balance account?
Van Kampen defines a low-balance account as one that is less than $750.Under the new policy, these low-balance accounts will be subject to an annual $12 account maintenance fee, which, beginning in 2007,will be assessed annually each November.

Why are you revising your policy? The objective of the new policy is to curb fund expenses and offset the cost of low-balance accounts for the broader shareholder population. As you may already know, accounts with low balances place a disproportionate burden on a fund’s shareholders, as reflected in a fund’s expenses. By instituting low-balance account maintenance fees and by establishing minimums for account balances, initial investments and subsequent investments, we believe we will be better able to continue providing shareholders with competitive products while minimizing overall expenses.

What types of accounts are affected?
All Van Kampen non-retirement and retirement accounts are subject to the new policy, with certain exceptions outlined below.¹

Minimum Investment Exceptions. The types of accounts we’ve listed here will be exempt from the minimum investment amounts, which we’ve outlined in the table on page 1.

• Certain omnibus accounts at financial intermediaries
• Employer-sponsored retirement plan accounts or pre-approved asset allocation plan transactions
• Qualified State Tuition Program (529 Plans) accounts
• Dividend reinvestment and dividend diversification transactions
• Systematic exchange plans l UIT dividend reinvestments
• Class-B-to-Class-A share conversions
• Transfers, between certain types of accounts, transfers from other custodians and/or transfers of ownership

Account Fee Exceptions. The types of accounts we’ve listed here will be exempt from the annual low-balance account maintenance fee described above.

• Certain omnibus accounts at financial intermediaries
• Fund of Funds, Qualified State Tuition Program (529 Plans) accounts, Van Kampen LIT Portfolios and Van Kampen Senior Loan Fund
• Systematic investment plans in existence for less than 12 months
• Systematic exchange plans
• UIT dividend reinvestment plans in existence for less than 12 months
• Certain accounts, established through a broker, for which the transfer agent does not initiate transactions

When will the new policy take effect?
While we will begin communicating details about the policy as early as October 2006, the account minimums—for initial investments and for subsequent investments—are effective June 2007 and low-balance account maintenance fees will be assessed in November 2007.

What if Van Kampen receives an initial investment that does not meet the minimum(s)?
In these instances, shareholders and financial advisors will be contacted and given an opportunity to increase the initial investment amount to that of its applicable minimum. We cannot accept initial investments that do not meet the stated minimum amount.

Why are you planning to redeem low-balance accounts?
Industry-wide, low-balance accounts represent a disproportionate burden on fund expenses. We are implementing this new policy, which allows for involuntary redemptions of low-balance accounts, in an effort to help control fund expenses.

What options do shareholders have?
Shareholders who do not wish to have their accounts redeemed may maintain their accounts by choosing one or both of the following options:

Add to their investment. If shareholders have been considering additional contributions, this may be an appropriate time to discuss long-term planning with their financial advisors. To avoid a low balance fee and maintain an existing account, a shareholder can choose to make additional contributions to meet the account balance minimums.

Consolidate accounts. If shareholders own multiple Van Kampen funds that are of the same share class, the same registration and that, when combined, have a total value equal to or greater than the account balance minimums, then they may choose to consolidate the accounts. Shareholders may also choose to transfer/exchange shares from one account to another (subject to the exchange policy). Legal documentation may be required in some instances. Please contact our Client Relations department at 800.847.2424 with any questions.

When and how will this revised policy be communicated?

• Fall 2006–Spring 2007—Updated prospectuses or supplements outlining the new policy will be mailed to shareholders.
• Spring 2007—Financial advisors will be notified if they have clients who may be subject to an involuntary redemption.
• June 2007—Account-minimum policy goes into effect.
• November 2007—Annual $12 low-balance account maintenance fee assessed.

What will take place going forward?
We will periodically identify low-balance accounts and notify the affected shareholder (and financial advisor, if applicable) accordingly. Shareholders will be notified in advance in order to allow them time to increase their balance and/or consolidate their accounts, if they so choose.

View the pdf