Van Kampen High Yield Municipal and
Strategic Municipal Income Funds Reopen |
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Van Kampen High Yield Municipal and Strategic Municipal Funds Reopen
We are pleased to announce that Van Kampen High Yield Municipal Fund and
Van Kampen Strategic Municipal Income Fund will reopen to new investors on
August 27, 2007. Van Kampen closed High Yield Municipal Fund to new investors on September 28, 2004, due to concerns that fund inflows could outpace the available supply of attractively valued high-yield municipal bonds. Van Kampen closed Strategic Municipal Income Fund to new investors on September 21, 2005, due to concerns that fund inflows could hinder the portfolio management team’s ability to manage the fund.
More recently, market conditions have changed, creating, in our opinion, a
more favorable investment environment for the funds. The portfolio
management team believes the current supply of high-yield municipal bonds
presents ample opportunities to capture value in the market.
Van Kampen High Yield Municipal Fund and Van Kampen Strategic Municipal
Income Fund have been helping investors pursue their goals for more than 20
years. The funds invest primarily in medium- and lower-grade municipal
securities and seeks to provide investors with a high level of interest
income exempt from federal income tax as is consistent with the investment
policies of the funds.
The funds are managed by the Municipal Fixed-Income team, whose current
members include Wayne D. Godlin, managing director, and James D. Phillips,
executive director.1 The team strongly believes that its history of managing
the funds' growth rate is one of the funds' attractive features. Therefore,
if market conditions change and the team believes that fund inflows are
likely to surpass the supply of securities that meet their rigorous
investment criteria, we may again limit asset inflows.
It is important to note: while it is impossible to predict the future, past
market conditions have led the team to periodically open and close the
funds.
For additional information on how these funds may help you pursue your
goals, contact your financial advisor or visit the literature section.
1 Team members may change at any time without notice.
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Primary risks: 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 these funds. Please be aware that these funds are subject
to certain additional risks, including those outlined below: High
Yield Municipal Fund. Credit quality and tax treatment. Strategic
Municipal Income Fund. Fixed-income securities and tax treatment.
Credit quality. Investments in securities rated below investment
grade (commonly known as “junk bonds”) present greater risk of loss to
principal and interest than investment in higher-quality securities.
Tax treatment. The fund may invest a portion of its total assets in
bonds that may subject certain investors to the federal Alternative
Minimum Tax (AMT). Future laws could eliminate the tax exemption for
municipal income. You should consult your tax adviser for further
information on tax implications. Fixed-income securities. Subject
to credit and interest-rate risk. Credit risk refers to the ability of
an issuer to make timely payments of interest and principal.
Interest-rate risk refers to fluctuations in the value of a fixed-income
security resulting from changes in the general level of interest rates.
In a declining interest-rate environment, the portfolio may generate
less income. In a rising interest-rate environment, bond prices fall.
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