2007 Government Obligations
Information for Van Kampen Funds

January 16, 2008

The portion of dividends paid by your fund that is derived from U.S. government obligations is generally exempt from state and local income taxes. In many states, income derived from other government agencies is also free from state income taxes. The percentage of 2007 dividends paid by your fund attributable to government and agency obligations is listed below. Primary obligations represent direct investments in Treasury securities, while secondary obligations are direct investments in generally qualifying U.S. agency obligations. Only those funds that have earned income from U.S. government obligations in 2007 are listed below. Please note, this information will no longer be provided on a separate form for Open-End Funds.

For specific information about your state’s exemption provisions, please consult your tax advisor or local taxing authority.

Open-End Funds

 

Fund Name

Primary
Obligations
Secondary Obligations
Did the fund have more than 50% in qualifying Government Securities at quarter end?
Corporate Bond Fund 6.92% 1.04% No
Core Plus Fixed Income Fund 7.75% 12.48% No
Equity and Income Fund 14.59% 0.55% No
Govt. Securities Fund1 30.22% 40.04% No
Growth and Income Fund 1.52% 0.29% No
High Yield Fund 0.15% - No
Limited Duration Fund1 0.07% 8.41% No
Reserve Fund 1.30% 0.40% No
U.S. Mortgage Fund1 3.81% 51.83% No

Closed-End Funds

 

Fund/Trust Name

Primary
Obligations
Secondary Obligations
Did the fund have more than 50% in Government Securities at quarter end?
Bond Fund 16.91% 2.08% No
High Income Trust II 0.38% - No
Income Trust 16.21% 17.30% No

Life Investment Trusts

 

Portfolio Name

Primary
Obligations
Secondary Obligations
Did the fund have more than 50% in Government Securities at quarter end?
Government Portfolio1 28.55% 32.28% No
Money Market Portfolio 1.36% 1.47% No
A note about money markets: An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of an investment at $1.00 per share, it is possible to lose money by investing in the fund.

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 a fund.

1 Fund shares are neither insured nor guaranteed by the U.S. government.

Open-end funds: If you have any questions about your open-end fund’s income distributions, please call (800) 847-2424.

Life Investment Trusts or Closed-end funds: If you have questions about your life investment trust or closed-end fund, please call (800) 341-2929.

You may also send us a secure e-mail 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.

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

QUICK LINKS

Open-End Funds

 Closed-End Funds

 Life Investment Trusts

Tax Information Center

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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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