Capital Gains—Closed-End Trusts

December 2007

In addition to your regular monthly dividend, your December distribution may reflect a capital gain distribution paid by your trust. Whenever a trust sells securities for more than their purchase price, it realizes a capital gain. We are required to distribute to shareholders the net amount that capital gains exceed capital losses at least once each year.

The following is a breakdown of the components of each trust’s December 2007 distribution.

December Distribution

For federal income tax purposes, dividends are taxed as follows:

• Income dividends represent interest and/or dividends earned on securities held by the trust, less applicable trust expenses. For shareholders of tax-exempt trusts, income dividends are generally not subject to regular federal income taxes. Some investors, however, may be subject to the alternative minimum tax (AMT). For shareholders of taxable trusts, income dividends are taxed at your ordinary income tax rate.
• Short-term capital gain represents the net gain recognized on securities held in the trust’s portfolio for one year or less before being sold. These distributions are taxed at your ordinary income tax rate.
• Long-term capital gain represents the net gain recognized on securities held in the trust’s portfolio for more than one year before being sold. For individual shareholders, these distributions are taxed at a maximum rate of 15 percent.
• Information on qualified dividend income, taxed at a maximum rate of 15 percent, will be available on your tax form.

You will receive complete information about your trust’s 2007 distributions on Form 1099-DIV by early February.

If you have any questions about your capital gain distributions, please call (800) 341-2929. You may also e-mail us by selecting Contact Us.

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.

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