Qualified Dividend Income

The Jobs & Growth Tax Relief Reconciliation Act of 2003 introduced new rules pertaining to qualified dividend income. Below we’ve listed the qualified dividends paid by your fund.We’ve also included answers to two commonly asked questions regarding these new rules.

Van Kampen Funds

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 Van Kampen quarterly dividends had ex-dividend dates of March 14, June 13, September 12 and December 11, 2007.

² A portion of the fund’s total assets may be invested in foreign markets. Investing in foreign markets entails special risks, including currency, political, economic and market risks.

³ The fund may invest in lower-quality and non-rated securities, which present greater risk of loss of principal and interest than higher-rated securities.

⁴ The values of convertible securities, in which the fund may invest, tend to decline as interest rates rise and, because of the conversion feature, tend to vary with fluctuation in the market value of the underlying equity security.

⁵ All Van Kampen Equity Premium Income Fund’s monthly dividends paid during the calendar year 2007.

⁶ Van Kampen Asset Allocation Conservative Fund and Leaders Fund quarterly dividends had ex-dividend dates of March 16, June 15, September 14 and December 13, 2007.

Q: What is a qualified dividend?
A: A qualified dividend is paid to the fund by a “qualified” company. This is defined as a domestic company traded on a qualifying exchange or a foreign company where the country of origin has a comprehensive income tax treaty with the United States that includes an exchange of information program. There is also a holding period requirement that must be met for a dividend to be deemed “qualified.” Please read on for more information about qualified dividends.

Q. Will all distributions reported to me as qualified dividends be taxed at 15 percent?
A: Not necessarily. In order to qualify for the reduced tax rate, you must have held the dividend-paying shares for 61 days out of a 121-day span covering the 60 days before and the 60 days after the fund’s ex-dividend date. (Note: the ex-dividend date is a critical factor in determining whether a shareholder is eligible to receive a declared dividend.) When counting the number of days you held the shares, include the day you sold your shares, but not the day you acquired them.

If you have any questions regarding the treatment of qualified dividends and how they may apply to you, please contact your tax advisor.

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.

Tax Information Center

View the pdf