UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-7398
Van Kampen Pennsylvania Value Municipal Income Trust
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(Exact name of registrant as specified in charter)
1221 Avenue of the Americas, New York, New York 10020
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(Address of principal executive offices) (Zip code)
Ronald Robison
1221 Avenue of the Americas, New York, New York 10020
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(Name and address of agent for service)
Registrant's telephone number, including area code: 212-762-4000
Date of fiscal year end: 10/31
Date of reporting period: 4/30/06
Item 1. Reports to Shareholders.
The Trust's semiannual report transmitted to shareholders pursuant to Rule 30e-1
under the Investment Company Act of 1940 is as follows:
Welcome, Shareholder
In this report, you'll learn about how your investment in Van Kampen
Pennsylvania Value Municipal Income Trust performed during the semiannual
period. The portfolio management team will provide an overview of the
market conditions and discuss some of the factors that affected
investment performance during the reporting period. In addition, this
report includes the fund's financial statements and a list of fund
investments as of April 30, 2006.
MARKET FORECASTS PROVIDED IN THIS REPORT MAY NOT NECESSARILY COME TO
PASS. THERE IS NO ASSURANCE THAT THE TRUST WILL ACHIEVE ITS INVESTMENT
OBJECTIVE. TRUSTS ARE SUBJECT TO MARKET RISK, WHICH IS THE POSSIBILITY
THAT THE MARKET VALUES OF SECURITIES OWNED BY THE TRUST WILL DECLINE AND
THAT THE VALUE OF TRUST SHARES MAY THEREFORE BE LESS THAN WHAT YOU PAID
FOR THEM. ACCORDINGLY, YOU CAN LOSE MONEY INVESTING IN THIS TRUST.
INCOME MAY SUBJECT CERTAIN INDIVIDUALS TO THE FEDERAL ALTERNATIVE MINIMUM
TAX (AMT).
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NOT FDIC INSURED OFFER NO BANK GUARANTEE MAY LOSE VALUE
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NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY NOT A DEPOSIT
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Performance Summary as of 4/30/06
PENNSYLVANIA VALUE MUNICIPAL INCOME TRUST
SYMBOL: VPV
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AVERAGE ANNUAL BASED ON BASED ON
TOTAL RETURNS NAV MARKET PRICE
Since Inception (4/30/93) 6.59% 5.46%
10-year 7.18 7.21
5-year 7.09 6.77
1-year 1.53 -2.13
6-month 1.55 -1.07
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PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NO GUARANTEE OF
FUTURE RESULTS, AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE FIGURES
SHOWN. FOR THE MOST RECENT MONTH-END PERFORMANCE FIGURES, PLEASE VISIT
VANKAMPEN.COM OR SPEAK WITH YOUR FINANCIAL ADVISOR. INVESTMENT RETURNS, NET
ASSET VALUE (NAV) AND COMMON SHARE MARKET PRICE WILL FLUCTUATE AND TRUST SHARES,
WHEN SOLD, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
NAV per share is determined by dividing the value of the trust's portfolio
securities, cash and other assets, less all liabilities, and preferred shares,
by the total number of common shares outstanding. The common share market price
is the price the market is willing to pay for shares of the trust at a given
time. Common share market price is influenced by a range of factors, including
supply and demand and market conditions. Total return assumes an investment at
the beginning of the period, reinvestment of all distributions for the period in
accordance with the trust's dividend reinvestment plan, and sale of all shares
at the end of the period.
The Lehman Brothers Pennsylvania Municipal Bond Index is a broad-based
statistical composite of Pennsylvania municipal bonds. The index is unmanaged
and does not include any sales charges or fees. Such costs would lower
performance. It is not possible to invest directly in an index.
1
Trust Report
FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2006
MARKET CONDITIONS
The economy continued to grow during the six-month period ended April 30, 2006,
demonstrating some resiliency in the face of rising oil and other commodity
prices, the Gulf Coast hurricanes, and emerging weakness in the housing market.
This expansion was more modest in the final months of 2005, but gained
considerable momentum in the first quarter.
Against the backdrop of growth and good employment data, the Federal Open Market
Committee (the "Fed") continued raising the federal funds target rate during the
period, implementing four additional increases of 25 basis points each. These
moves brought the target rate to 4.75 percent. The final hike of the period
represented the fifteenth consecutive increase--the longest stretch of increases
in 25 years. As the period came to a close, market observers speculated about
the Fed's near-term intentions, given the central bank's view that although
longer-term inflation currently appeared contained, commodity prices could
amplify inflationary pressures.
Returns across the municipal bond market varied significantly. As investors
sought income opportunities, lower rated bonds outpaced investment-grade bonds
by a wide margin. Long-term bonds earned the best returns, broadly speaking,
while bonds in the three-to-seven year range posted the most muted gains.
Municipal bond issuance was robust during the final months of 2005. (In fact,
2005 marked a record high for municipal bond volume.) The tide changed in 2006,
however. As rising rates discouraged issuers from refinancing debt, national
municipal issuance dropped by approximately 25 percent in the first four months
of the year versus the same period in 2005. While supply ebbed, the market's
appetite for municipal bonds remained strong, with particularly heavy demand
from high yield municipal bond funds.
Within the Commonwealth of Pennsylvania, issuance did not drop as sharply as the
national average in 2006. Higher education and school district bonds were
particularly well represented in the state's bond market. Pennsylvania has
enjoyed good economic recovery trends, including recent growth in job creation.
Growth in personal income tax revenues has also been strong. However, Medicaid
spending continues to be a concern, and an economic stimulus package is expected
to drive the state's debt level considerably higher.
2
PERFORMANCE ANALYSIS
The trust's return can be calculated based upon either the market price or the
net asset value (NAV) of its shares. NAV per share is determined by dividing the
value of the trust's portfolio securities, cash and other assets, less all
liabilities and preferred shares, by the total number of common shares
outstanding, while market price reflects the supply and demand for the shares.
As a result, the two returns can differ, as they did during the reporting
period. On an NAV basis and on a market price basis, the trust underperformed
its benchmark index, the Lehman Brothers Pennsylvania Municipal Bond Index.
TOTAL RETURNS FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2006
------------------------------------------------------------
LEHMAN BROTHERS
BASED ON BASED ON PENNSYLVANIA MUNICIPAL
NAV MARKET PRICE BOND INDEX
1.55% -1.07% 1.65%
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Performance data quoted represents past performance, which is no guarantee of
future results, and current performance may be lower or higher than the figures
shown. Investment return, net asset value and common share market price will
fluctuate and trust shares, when sold, may be worth more or less than their
original cost. See Performance Summary for additional performance information
and index definition.
The trust uses leverage to enhance its dividend to common shareholders. The
trust borrows money at short-term rates through the issuance of preferred
shares. The proceeds are reinvested in longer-term securities, taking advantage
of the difference between short- and longer-term rates. The Fed's policy of
raising interest rates throughout the period made the trust's borrowing activity
more expensive, which reduced the benefits of the trust's leverage activities.
Throughout the period, we managed the trust according to a long-term "buy and
hold" discipline anchored by rigorous research. We sought high quality bonds
with attractive return potential and good liquidity. (Liquid securities are
those for which there is a robust market of purchasers and sellers.)
The trust maintained a high credit quality, with nearly 80 percent of bonds
rated AA or higher as of April 30, 2006. While adhering to our quality-driven
discipline, we sought opportunities to enhance the portfolio's yield. For
example, we boosted the trust's stake in BBB rated tobacco revenue bonds. Our
decision to increase tobacco bond exposure reflected our analytical findings of
strong tobacco industry fundamentals and an improving litigation environment. We
also added inverse floating rate securities.
The trust benefited from its emphasis on bonds with long maturities, as this
segment of the market outperformed overall. Our sales focused on bonds with
shorter maturities, generally those with maturities of 10 years or less,
including pre-refunded bonds. We invested these assets, along with proceeds from
bonds which were called by their issuers, in longer-term issues. These purchases
3
reflected our preferences for bonds with maturities of 20 years and longer, and
defensive structures.
Additionally, reflecting the view that interest rates would continue to rise,
with longer-term rates advancing less rapidly, we kept the trust's duration
shorter than its benchmark's. (Duration is a measure of interest rate
sensitivity.) This posture proved advantageous during the period.
The trust's portfolio was well-represented across the major sectors of the
municipal bond market, with a focus on essential services. Higher education,
general purpose, hospital, public education and water and sewer represented the
largest sector weightings as of the close of the period.
During the reporting period, Van Kampen Pennsylvania Quality Municipal Trust,
Trust for Investment Grade Pennsylvania and Van Kampen Advantage Pennsylvania
Municipal Income Trust were merged into Van Kampen Pennsylvania Value Municipal
Income Trust.
VPV's procedure for reinvesting all dividends and distributions in common shares
is through purchases in the open market. This method helps support the market
value of the Trust's shares. In addition, we would like to remind you that the
Trustees have approved a procedure whereby the Trust may, when appropriate,
purchase shares in the open market or in privately negotiated transactions at a
price not above market value or net asset value, whichever is lower at the time
of purchase.
There is no guarantee that any sectors mentioned will continue to perform as
discussed herein or that securities in such sectors will be held by the trust in
the future.
TOP FIVE SECTORS AS OF 4/30/2006 RATINGS ALLOCATION AS OF 4/30/06
Higher Education 20.1% AAA/Aaa 66.9%
General Purpose 13.9 AA/Aa 12.4
Hospital 13.6 A/A 7.8
Public Education 10.5 BBB/Baa 10.1
Water & Sewer 7.5 Non-Rated 2.8
Subject to change daily. Provided for informational purposes only and should not
be deemed as a recommendation to buy or sell the securities mentioned or
securities in the sectors shown above. Ratings are as a percentage of total
investments. Sectors are as a percentage of long-term investments. Securities
are classified by sectors that represent broad groupings of related industries.
Van Kampen is a wholly owned subsidiary of a global securities firm which is
engaged in a wide range of financial services including, for example, securities
trading and brokerage activities, investment banking, research and analysis,
financing and financial advisory services. Rating allocations based upon ratings
as issued by Standard and Poor's and Moody's, respectively.
4
FOR MORE INFORMATION ABOUT PORTFOLIO HOLDINGS
Each Van Kampen trust provides a complete schedule of portfolio holdings
in its semiannual and annual reports within 60 days of the end of the
trust's second and fourth fiscal quarters. The semiannual reports and the
annual reports are filed electronically with the Securities and Exchange
Commission (SEC) on Form N-CSRS and Form N-CSR, respectively. Van Kampen
also delivers the semiannual and annual reports to trust shareholders,
and makes these reports available on its public Web site,
www.vankampen.com. In addition to the semiannual and annual reports that
Van Kampen delivers to shareholders and makes available through the Van
Kampen public Web site, each trust files a complete schedule of portfolio
holdings with the SEC for the trust's first and third fiscal quarters on
Form N-Q. Van Kampen does not deliver the reports for the first and third
fiscal quarters to shareholders, nor are the reports posted to the Van
Kampen public Web site. You may, however, obtain the Form N-Q filings (as
well as the Form N-CSR and N-CSRS filings) by accessing the SEC's Web
site, http://www.sec.gov. You may also review and copy them at the SEC's
Public Reference Room in Washington, DC. Information on the operation of
the SEC's Public Reference Room may be obtained by calling the SEC at
(800) SEC-0330. You can also request copies of these materials, upon
payment of a duplicating fee, by electronic request at the SEC's e-mail
address (publicinfo@sec.gov) or by writing the Public Reference section
of the SEC, Washington, DC 20549-0102.
You may obtain copies of a trust's fiscal quarter filings by contacting
Van Kampen Client Relations at (800) 847-2424.
PROXY VOTING POLICY AND PROCEDURES AND PROXY VOTING RECORD
You may obtain a copy of the trust's Proxy Voting Policy and Procedures
without charge, upon request, by calling toll free (800) 847-2424 or by
visiting our Web site at www.vankampen.com. It is also available on the
Securities and Exchange Commission's Web site at http://www.sec.gov.
You may obtain information regarding how the trust voted proxies relating
to portfolio securities during the most recent twelve-month period ended
June 30 without charge by visiting our Web site at www.vankampen.com.
This information is also available on the Securities and Exchange
Commission's Web site at http://www.sec.gov.
5
VAN KAMPEN PENNSYLVANIA VALUE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED)
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
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MUNICIPAL BONDS 157.5%
PENNSYLVANIA 150.5%
$ 3,000 Allegheny Cnty, PA Arpt Auth Pittsburgh Intl
Arpt Rfdg (AMT) (FGIC Insd)..................... 5.750% 01/01/18 $ 3,147,330
2,000 Allegheny Cnty, PA Higher Ed Bldg Carnegie
Mellon Univ..................................... 5.125 03/01/32 2,056,220
2,750 Allegheny Cnty, PA Higher Ed Bldg Carnegie
Mellon Univ..................................... 5.250 03/01/32 2,862,640
1,360 Allegheny Cnty, PA Hosp Dev Auth Rev Hlth Sys
Ser A (MBIA Insd)............................... 6.500 11/15/30 1,515,897
3,145 Allegheny Cnty, PA Hosp Dev Auth Rev OH Vly Gen
Hosp Proj Ser A................................. 5.125 04/01/35 3,113,959
3,000 Allegheny Cnty, PA Port Auth Spl Rev Trans (FGIC
Insd)........................................... 5.000 03/01/29 3,067,620
2,000 Allegheny Cnty, PA Port Auth Spl Rev Trans
(Prerefunded @ 03/01/09) (MBIA Insd)............ 6.000 03/01/24 2,139,340
1,300 Allegheny Cnty, PA Redev Auth Tax Increment Rev
Robinson Mall Proj Ser A........................ 7.000 11/01/17 1,394,848
680 Allegheny Cnty, PA Residential Fin Auth Mtg Rev
Single Family (AMT) (GNMA Collateralized)....... 7.100 05/01/24 680,857
475 Allegheny Cnty, PA Residential Fin Auth Mtg Rev
Single Family Ser II-1 (AMT) (GNMA
Collateralized)................................. 5.800 05/01/21 491,539
640 Allegheny Cnty, PA Residential Fin Auth Mtg Rev
Single Family Ser II-2 (AMT) (GNMA
Collateralized)................................. 5.800 11/01/20 662,547
3,855 Allegheny Cnty, PA Residential Fin Auth Mtg Rev
Single Family Ser KK-2 (AMT) (GNMA
Collateralized) (a)............................. 5.750 05/01/33 3,952,609
1,515 Allegheny Cnty, PA Residential Fin Auth Mtg Rev
Single Family Ser MM (AMT) (GNMA
Collateralized)................................. 5.200 05/01/33 1,528,377
1,000 Allegheny Cnty, PA Residential Fin Auth Mtg Rev
Single Family Ser RR (AMT) (GNMA
Collateralized)................................. 4.750 11/01/25 974,550
1,000 Allegheny Cnty, PA San Auth Swr Rev (MBIA
Insd)........................................... 5.750 12/01/13 1,088,940
460 Allegheny Cnty, PA San Auth Swr Rev (MBIA
Insd)........................................... 5.500 12/01/30 492,099
2,220 Allegheny Cnty, PA San Auth Swr Rev (Prerefunded
@ 12/01/10) (MBIA Insd)......................... 5.750 12/01/17 2,412,363
1,830 Allegheny Cnty, PA San Auth Swr Rev (Prerefunded
@ 12/01/10) (MBIA Insd)......................... 5.750 12/01/18 1,988,569
3,725 Allegheny Cnty, PA San Auth Swr Rev Ser A Rfdg
(MBIA Insd)..................................... 5.000 12/01/30 3,861,298
1,440 Bensalem Twp, PA (MBIA Insd) (b)................ 5.000 06/01/25 1,503,173
1,515 Bensalem Twp, PA (MBIA Insd) (b)................ 5.000 06/01/26 1,578,963
1,335 Bentworth, PA Sch Dist Ser B (FSA Insd) (c)..... 5.000 03/15/28 1,385,009
1,695 Berks Cnty, PA Muni Auth Albright College Proj
(b)............................................. 5.500 10/01/16 1,784,767
1,800 Berks Cnty, PA Muni Auth Albright College Proj
(b)............................................. 5.500 10/01/17 1,891,242
6,000 Berks Cnty, PA Muni Auth Hosp Rev Reading Hosp &
Med Ctr Proj (Prerefunded @ 11/01/09) (FSA
Insd)........................................... 6.000 11/01/29 6,545,640
4,460 Bethlehem, PA Auth Wtr Gtd (FSA Insd)........... 5.000 11/15/19 4,679,610
6 See Notes to Financial Statements
VAN KAMPEN PENNSYLVANIA VALUE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
---------------------------------------------------------------------------------------------
PENNSYLVANIA (CONTINUED)
$ 1,000 Bradford Cnty, PA Indl Dev Auth Solid Waste Disp
Rev Intl Paper Ser B Rfdg (AMT)................. 5.200% 12/01/19 $ 1,000,770
1,270 Bucks Cnty, PA Auth Wtr & Swr Rev Swr Sys (AMBAC
Insd) (b)....................................... 5.375 06/01/16 1,364,704
1,150 Bucks Cnty, PA Wtr & Swr Rev Neshaminy
Interceptor Ser A (AMBAC Insd) (b).............. 5.375 06/01/14 1,234,559
1,215 Bucks Cnty, PA Wtr & Swr Rev Neshaminy
Interceptor Ser A (AMBAC Insd) (b).............. 5.375 06/01/15 1,304,339
1,000 Canon McMillan Sch Dist PA Ser B (FGIC Insd).... 5.500 12/01/29 1,061,450
2,725 Carbon Cnty, PA Indl Dev Auth Panther Creek
Partn Proj Rfdg (AMT) (LOC: Paribas & Union Bk
of CA Intl)..................................... 6.650 05/01/10 2,868,008
1,430 Catasauqua, PA Area Sch Dist (FSA Insd)......... 5.000 02/15/31 1,479,750
2,100 Catasauqua, PA Area Sch Dist (FSA Insd)......... 5.000 02/15/36 2,163,000
900 Central Dauphin, PA Sch Dist (MBIA Insd) (c).... 6.000 02/01/19 1,026,603
5,500 Central Dauphin, PA Sch Dist (FSA Insd)......... 5.000 12/01/19 5,750,965
1,370 Central Greene, PA Sch Dist Ser B Rfdg (FSA
Insd) (b)....................................... 5.000 02/15/23 1,431,992
1,435 Central Greene, PA Sch Dist Ser B Rfdg (FSA
Insd) (b)....................................... 5.000 02/15/24 1,498,771
1,000 Chartiers Vly, PA Indl & Coml Dev Auth First Mtg
Rev Asbury Hlth Ctr Rfdg........................ 6.375 12/01/19 1,034,580
1,000 Chartiers Vly, PA Indl & Coml Dev Auth First Mtg
Rev Asbury Hlth Ctr Rfdg........................ 6.375 12/01/24 1,035,840
3,000 Cheltenham Twp, PA (AMBAC Insd)................. 5.000 01/01/28 3,105,840
3,555 Chester Cnty, PA Indl Dev Auth Rev Collegium
Charter Sch Proj Ser A (ACA Insd)............... 5.500 04/15/31 3,677,576
1,500 Crawford Cnty, PA Hosp Auth Sr Living Fac Rev
Westbury Utd Methodist Cmnty.................... 6.250 08/15/29 1,538,790
1,000 Cumberland Cnty, PA Muni Auth Dickinson College
Ser A (AMBAC Insd).............................. 5.500 11/01/30 1,060,470
5,000 Dauphin Cnty, PA Genl Auth Hosp Rev Hapsco
Western PA Hosp Proj B Rfdg (Escrowed to
Maturity) (MBIA Insd)........................... 6.250 07/01/16 5,648,800
2,000 Delaware Cnty, PA Auth College Cabrini College
(Radian Insd)................................... 5.750 07/01/23 2,089,000
2,295 Delaware Cnty, PA Auth College Neumann College
Rfdg (b)........................................ 5.875 10/01/21 2,412,068
2,000 Delaware Cnty, PA Auth College Neumann College
Rfdg............................................ 6.000 10/01/31 2,089,580
1,000 Delaware Cnty, PA Auth Rev White Horse Vlg Proj
Ser A Rfdg (Prerefunded @ 07/01/10)............. 7.625 07/01/30 1,087,690
1,750 Delaware Cnty, PA Indl Dev Auth Rev Wtr Fac
(AMT) (FGIC Insd)............................... 6.000 06/01/29 1,861,772
2,750 Delaware Cnty, PA Indl Dev Auth Rev Wtr Fac Aqua
PA Inc Proj Ser A (AMT) (FGIC Insd)............. 5.000 11/01/37 2,805,687
See Notes to Financial Statements 7
VAN KAMPEN PENNSYLVANIA VALUE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
---------------------------------------------------------------------------------------------
PENNSYLVANIA (CONTINUED)
$ 9,300 Delaware Cnty, PA Indl Dev Auth Rev Wtr Fac Aqua
PA Inc Proj Ser B (AMT) (FGIC Insd)............. 5.000% 11/01/36 $ 9,495,486
4,000 Delaware Cnty, PA Indl Dev Auth Rev Wtr Fac Aqua
PA Inc Proj Ser C (AMT) (FGIC Insd)............. 5.000 02/01/35 4,069,240
2,500 Delaware Cnty, PA Indl Dev Auth Wtr Fac PA
Suburban Wtr (AMT) (AMBAC Insd)................. 5.350 10/01/31 2,600,075
1,230 Delaware Cnty, PA Regl Wtr Qual Ctl Auth Swr Rev
(MBIA Insd)..................................... 5.250 05/01/19 1,311,032
1,480 Delaware Cnty, PA Regl Wtr Qual Ctl Auth Swr Rev
(MBIA Insd) (b)................................. 5.250 05/01/21 1,575,430
1,555 Delaware Cnty, PA Regl Wtr Qual Ctl Auth Swr Rev
(MBIA Insd) (b)................................. 5.250 05/01/22 1,655,266
8,000 Delaware Vly, PA Regl Fin Auth.................. 5.750 07/01/17 8,840,480
2,000 Downingtown, PA Area Sch Dist (FSA Insd)........ 5.250 04/01/15 2,121,240
2,000 Erie Cnty, PA Convention Ctr Auth Hotel Rev
(FGIC Insd)..................................... 5.000 01/15/36 2,054,600
2,800 Erie, PA Sch Dist (Prerefunded @ 09/01/10)
(AMBAC Insd).................................... 5.800 09/01/29 3,029,376
2,735 Exeter Twp, PA Sch Dist (FGIC Insd)............. 5.000 05/15/25 2,828,701
7,285 Falls Twp, PA Hosp Auth Hosp Rev DE Vly Med Rfdg
(FHA Gtd)....................................... 7.000 08/01/22 7,335,412
1,000 Fayette Cnty, PA (Prerefunded @ 11/15/10) (AMBAC
Insd)........................................... 5.625 11/15/28 1,078,130
6,575 Harrisburg, PA Auth Wtr Rev Rfdg (FSA Insd)
(b)............................................. 5.000 07/15/21 6,837,145
1,000 Harveys Lake Genl Muni Auth PA College Rev
College Misericordia Proj (ACA Insd)............ 6.000 05/01/19 1,047,350
1,250 Haverford Twp, PA Sch Dist (FSA Insd)........... 5.500 03/15/18 1,390,187
1,200 Haverford Twp, PA Sch Dist (FSA Insd)........... 5.500 03/15/19 1,339,332
2,345 Jenkintown, PA Sch Dist Ser A (FGIC Insd)....... 5.000 05/15/28 2,403,297
1,985 Jim Thorpe, PA Area Sch Dist (FSA Insd) (b)..... 5.000 03/15/25 2,063,527
3,500 Lancaster, PA Higher Ed Auth Rev Franklin &
Marshall College (c)............................ 5.000 04/15/22 3,630,690
1,000 Lebanon Cnty, PA Hlth Fac Pleasant View Auth
Hlth Ctr Rev Retirement Ser A................... 5.125 12/15/20 984,770
1,510 Lehigh Cnty, PA Gen Purp Auth Cedar Crest
College Rfdg (Radian Insd)...................... 5.000 04/01/26 1,555,209
2,000 Lehigh Cnty, PA Gen Purp Auth Cedar Crest
College Rfdg.................................... 6.700 04/01/26 2,000,460
2,000 Lehigh Cnty, PA Gen Purp Auth Good Shepherd Grp
Ser A........................................... 5.500 11/01/24 2,077,740
1,000 Lehigh Cnty, PA Gen Purp Auth Good Shepherd Grp
Ser A........................................... 5.625 11/01/34 1,039,440
1,800 Lehigh Cnty, PA Gen Purp Auth Rev Hosp Saint
Lukes Bethlehem................................. 5.250 08/15/23 1,845,342
1,750 Lehigh Cnty, PA Gen Purp Auth Rev Hosp Saint
Lukes Bethlehem................................. 5.375 08/15/33 1,796,567
8 See Notes to Financial Statements
VAN KAMPEN PENNSYLVANIA VALUE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
---------------------------------------------------------------------------------------------
PENNSYLVANIA (CONTINUED)
$ 1,240 Lehigh Northampton, PA Arpt Lehigh Vly Arpt Sys
Ser A Rfdg (AMT) (MBIA Insd) (b)................ 5.000% 01/01/20 $ 1,270,169
1,360 Lehigh Northampton, PA Arpt Lehigh Vly Arpt Sys
Ser A Rfdg (AMT) (MBIA Insd) (b)................ 5.000 01/01/22 1,391,130
675 Lehigh Northampton, PA Arpt Lehigh Vly Arpt Sys
Ser A Rfdg (AMT) (MBIA Insd).................... 5.000 01/01/23 689,486
1,500 Lehigh Northampton, PA Arpt Ser A (AMT) (MBIA
Insd)........................................... 6.000 05/15/25 1,596,690
2,700 Lehigh Northampton, PA Arpt Ser A (AMT) (MBIA
Insd)........................................... 6.000 05/15/30 2,874,042
2,310 Luzerne Cnty, PA Ser A (MBIA Insd) (b).......... 5.250 11/15/17 2,458,764
2,050 Luzerne Cnty, PA Ser A (MBIA Insd).............. 5.250 11/15/19 2,182,020
8,290 Luzerne Cnty, PA Ser A (MBIA Insd).............. 5.250 11/15/25 8,756,395
6,650 Lycoming Cnty, PA Auth College Rev PA College of
Technology (AMBAC Insd)......................... 5.350 07/01/26 6,990,746
5,000 Lycoming Cnty, PA Auth College Rev PA College of
Technology (AMBAC Insd)......................... 5.375 07/01/30 5,261,900
1,000 Mercer Cnty, PA (FGIC Insd)..................... 5.500 10/01/15 1,078,280
5,000 Mercer Cnty, PA Indl Dev Auth Wtr Fac
Philadelphia Sub Corp (AMT) (MBIA Insd)......... 6.000 07/01/30 5,339,050
1,000 Mifflin Cnty, PA Hosp Auth (Radian Insd)........ 6.200 07/01/25 1,087,600
2,500 Mifflin Cnty, PA Hosp Auth Rev (Radian Insd).... 6.200 07/01/30 2,714,575
3,755 Mifflin Cnty, PA Ser A (FGIC Insd) (b).......... 5.000 09/01/31 3,845,909
3,000 Monroe Cnty, PA Hosp Auth Rev Hosp Pocono Med
Ctr............................................. 6.000 01/01/43 3,156,240
1,150 Monroeville, PA Muni Auth San Swr Rev Ser B
(MBIA Insd) (Prerefunded @ 12/01/12) (b)........ 5.250 12/01/17 1,240,954
1,205 Monroeville, PA Muni Auth San Swr Rev Ser B
(MBIA Insd) (Prerefunded @ 12/01/12)............ 5.250 12/01/18 1,300,303
1,280 Monroeville, PA Muni Auth San Swr Rev Ser B
(MBIA Insd) (Prerefunded @ 12/01/12) (b)........ 5.250 12/01/19 1,381,235
1,350 Monroeville, PA Muni Auth San Swr Rev Ser B
(MBIA Insd) (Prerefunded @ 12/01/12) (b)........ 5.250 12/01/20 1,456,772
6,500 Montgomery Cnty, PA Higher Ed & Hlth Auth Hosp
Rev Abington Mem Hosp Ser A..................... 5.125 06/01/32 6,584,500
4,685 Montgomery Cnty, PA Higher Ed & Hlth Auth Rev
Arcadia Univ (Radian Insd) (b).................. 5.000 04/01/21 4,847,944
5,000 Montgomery Cnty, PA Higher Ed & Hlth Auth Rev
Arcadia Univ (Radian Insd)...................... 5.000 04/01/27 5,133,700
2,000 Montgomery Cnty, PA Higher Ed & Hlth Auth Rev
Arcadia Univ (Radian Insd)...................... 5.000 04/01/36 2,037,540
3,900 Montgomery Cnty, PA Indl Dev Auth Rev Res Rec
Montenay Proj Ser A (MBIA Insd)................. 5.250 11/01/14 4,211,259
4,000 Moon Area Sch Dist PA (FSA Insd)................ 5.000 11/15/25 4,167,920
2,345 Moon Indl Dev Auth PA Ed Fac Rev Ellis Sch Proj
(Prerefunded @ 03/01/09)........................ 5.800 03/01/25 2,469,426
See Notes to Financial Statements 9
VAN KAMPEN PENNSYLVANIA VALUE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
---------------------------------------------------------------------------------------------
PENNSYLVANIA (CONTINUED)
$ 1,500 Mount Lebanon, PA Hosp Auth Saint Clair Mem Hosp
Ser A........................................... 5.625% 07/01/32 $ 1,553,595
630 New Castle, PA San Auth Swr Rfdg (MBIA Insd).... 5.000 06/01/24 643,161
4,300 North Hills, PA Sch Dist (FSA Insd) (b)......... 5.250 12/15/26 4,603,365
1,225 Northampton Twp, PA (FGIC Insd) (b)............. 5.375 05/15/15 1,307,786
2,625 Norwin, PA Sch Dist (FSA Insd) (c).............. 5.000 04/01/35 2,708,869
1,000 Pennsylvania Econ Dev Fin Auth Res Recovery Rev
Colver Proj Ser G Rfdg (AMT).................... 5.125 12/01/15 990,180
1,000 Pennsylvania Econ Dev Fin Auth Solid Waste Disp
Rev Waste Management Inc Proj Ser A (AMT)....... 5.100 10/01/27 1,001,850
1,450 Pennsylvania Econ Dev Fin York Wtr Co Proj Ser A
(AMT) (XLCA Insd)............................... 5.000 04/01/16 1,504,187
4,760 Pennsylvania Hsg Fin Agy Single Family Mtg Ser
66A (AMT)....................................... 5.650 04/01/29 4,850,678
990 Pennsylvania Hsg Fin Agy Single Family Mtg Ser
90A (AMT)....................................... 4.700 10/01/25 974,724
1,500 Pennsylvania Intergvtl Coop Auth Spl Tax Rev
Philadelphia Fdg Pgm Rfdg (FGIC Insd)........... 5.500 06/15/20 1,503,270
1,000 Pennsylvania St Higher Ed Clarion Univ Fndtn Inc
Ser A (XLCA Insd)............................... 5.000 07/01/28 1,024,450
2,500 Pennsylvania St Higher Ed Fac Auth Rev Allegheny
College......................................... 4.800 05/01/36 2,435,975
3,000 Pennsylvania St Higher Ed Fac Auth Rev Drexel
Univ (b)........................................ 5.500 05/01/16 3,212,490
4,000 Pennsylvania St Higher Ed Fac Auth Rev Drexel
Univ (b)........................................ 5.500 05/01/17 4,272,320
5,500 Pennsylvania St Higher Ed Fac Auth Rev La Salle
Univ............................................ 5.500 05/01/34 5,654,990
1,300 Pennsylvania St Higher Ed Fac Auth Rev Lycoming
College Assn Indpt (Radian Insd)................ 5.250 11/01/19 1,373,931
1,000 Pennsylvania St Higher Ed Fac Auth Rev
Philadelphia Univ............................... 5.000 06/01/35 965,770
2,335 Pennsylvania St Higher Ed Fac Auth Rev Slippery
Rock Univ Fndtn Ser A (XLCA Insd) (b)........... 5.000 07/01/22 2,426,275
2,570 Pennsylvania St Higher Ed Fac Auth Rev Slippery
Rock Univ Fndtn Ser A (XLCA Insd) (b)........... 5.000 07/01/24 2,662,623
2,835 Pennsylvania St Higher Ed Fac Auth Rev Slippery
Rock Univ Fndtn Ser A (XLCA Insd) (b)........... 5.000 07/01/26 2,928,555
4,770 Pennsylvania St Higher Ed Fac Auth Rev Thomas
Jefferson Univ.................................. 5.375 01/01/25 5,027,723
6,000 Pennsylvania St Higher Ed Fac Auth Rev Univ
Sciences Philadelphia Ser A (XLCA Insd)......... 5.000 11/01/36 6,142,020
1,000 Pennsylvania St Higher Ed Fac Auth Rev UPMC Hlth
Sys Ser A....................................... 6.250 01/15/17 1,091,180
2,000 Pennsylvania St Higher Ed Fac Auth Rev UPMC Hlth
Sys Ser A....................................... 6.250 01/15/18 2,178,780
10 See Notes to Financial Statements
VAN KAMPEN PENNSYLVANIA VALUE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
---------------------------------------------------------------------------------------------
PENNSYLVANIA (CONTINUED)
$ 6,600 Pennsylvania St Higher Ed Fac Auth Rev UPMC Hlth
Sys Ser A (FSA Insd)............................ 5.000% 08/01/29 $ 6,735,498
7,850 Pennsylvania St Higher Ed Fac Auth Rev UPMC Hlth
Sys Ser A....................................... 6.000 01/15/31 8,482,789
1,500 Pennsylvania St Higher Ed Fac Clarion Univ Fndtn
Inc Ser A (XLCA Insd)........................... 5.250 07/01/18 1,583,760
1,500 Pennsylvania St Higher Ed Fac Clarion Univ Fndtn
Inc Ser A (XLCA Insd)........................... 5.000 07/01/33 1,532,085
3,000 Pennsylvania St Higher Ed Fac Messiah College
Ser AA3 (Radian Insd)........................... 5.500 11/01/22 3,207,090
1,560 Pennsylvania St Higher Ed Fac Philadelphia
College Osteopathic Med (b)..................... 5.000 12/01/16 1,626,425
1,000 Pennsylvania St Higher Ed Geneva College Proj... 6.125 04/01/22 1,068,380
2,165 Pennsylvania St Indl Dev Auth Econ Dev (AMBAC
Insd)........................................... 5.500 07/01/14 2,354,849
1,200 Pennsylvania St Tpk Commn Tpk Rev Ser A (AMBAC
Insd)........................................... 5.250 12/01/21 1,282,008
4,505 Pennsylvania St Tpk Commn Tpk Rev Ser T Rfdg
(FGIC Insd)..................................... 5.500 12/01/13 4,955,275
2,000 Pennsylvania St Univ............................ 5.000 09/01/29 2,066,980
4,000 Pennsylvania St Univ............................ 5.000 09/01/35 4,127,800
1,390 Pennsylvania St Univ Rfdg....................... 5.250 08/15/14 1,506,468
1,500 Pennsylvania St Univ Rfdg....................... 5.250 03/01/17 1,595,940
1,970 Pennsylvania St Univ Rfdg....................... 5.250 03/01/18 2,096,001
1,550 Perkiomen Vly Sch Dist PA Ser A (FSA Insd)...... 5.250 03/01/28 1,638,071
3,000 Philadelphia, PA (FSA Insd)..................... 5.250 09/15/25 3,145,110
3,000 Philadelphia, PA (FSA Insd)..................... 5.000 03/15/28 3,056,370
1,250 Philadelphia, PA Arpt Rev Ser A (AMT) (MBIA
Insd)........................................... 5.000 06/15/23 1,285,463
11,160 Philadelphia, PA Auth for Indl Ser B (FSA
Insd)........................................... 5.500 10/01/17 12,013,517
4,000 Philadelphia, PA Auth for Indl Ser B (FSA
Insd)........................................... 5.125 10/01/26 4,182,720
4,005 Philadelphia, PA Auth Indl Dev Amern College of
Physicians (b).................................. 5.500 06/15/27 4,142,011
2,250 Philadelphia, PA Auth Indl Dev Philadelphia Arpt
Sys Proj Ser A (AMT) (FGIC Insd)................ 5.125 07/01/19 2,323,103
2,500 Philadelphia, PA Auth Indl Dev Philadelphia Arpt
Sys Proj Ser A (AMT) (FGIC Insd)................ 5.250 07/01/28 2,553,300
3,500 Philadelphia, PA Gas Wks Rev 1975 Gen Ordinance
Seventeenth Ser (FSA Insd)...................... 5.375 07/01/19 3,708,880
1,700 Philadelphia, PA Gas Wks Rev Eighteenth Ser (AGL
Insd)........................................... 5.250 08/01/21 1,792,412
5,000 Philadelphia, PA Gas Wks Rev Second Ser (FSA
Insd)........................................... 5.250 07/01/29 5,214,750
4,080 Philadelphia, PA Gas Wks Rev Twelfth Ser B
(Escrowed to Maturity) (MBIA Insd).............. 7.000 05/15/20 4,822,560
1,000 Philadelphia, PA Hosp & Higher Ed Fac Auth Rev
Chestnut Hill College........................... 6.000 10/01/29 1,015,410
See Notes to Financial Statements 11
VAN KAMPEN PENNSYLVANIA VALUE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
---------------------------------------------------------------------------------------------
PENNSYLVANIA (CONTINUED)
$ 1,455 Philadelphia, PA Hosp & Higher Ed Fac Auth Rev
Cmnty College Ser B Rfdg (MBIA Insd) (b)........ 6.500% 05/01/09 $ 1,564,911
1,645 Philadelphia, PA Pkg Auth Rev Ser A
(AMBAC Insd).................................... 5.250 02/15/29 1,704,236
4,675 Philadelphia, PA Redev Auth Rev Neighborhood
Trans Ser A (FGIC Insd)......................... 5.250 04/15/12 5,007,346
1,905 Philadelphia, PA Redev Auth Rev Neighborhood
Trans Ser A (FGIC Insd)......................... 5.500 04/15/16 2,056,086
500 Pittsburgh & Allegheny Cnty, PA Pub Aud Hotel
Room (AMBAC Insd)............................... 5.125 02/01/35 515,255
16,000 Pittsburgh & Allegheny Cnty, PA Pub Aud Regl
Asset Dist Sales Tax (AMBAC Insd)............... 5.000 02/01/24 16,526,720
4,990 Pittsburgh & Allegheny Cnty, PA Pub Aud Regl
Asset Dist Sales Tax (AMBAC Insd)............... 5.000 02/01/29 5,123,882
2,215 Pittsburgh, PA Pub Pkg Auth Rev Ser A Rfdg (FGIC
Insd)........................................... 5.000 12/01/25 2,290,819
2,000 Pittsburgh, PA Pub Pkg Auth Rev Ser B (FGIC
Insd)........................................... 5.000 12/01/23 2,073,180
10,000 Pittsburgh, PA Ser A (AMBAC Insd)............... 5.500 09/01/17 10,693,400
2,000 Pittsburgh, PA Ser A (Prerefunded @ 09/01/09)
(FGIC Insd)..................................... 5.750 09/01/21 2,119,580
3,000 Pittsburgh, PA Ser A (Prerefunded @ 09/01/09)
(FGIC Insd)..................................... 5.750 09/01/22 3,179,370
1,000 Pittsburgh, PA Urban Redev Auth Cent Triangle
Tax Increment Ser A............................. 6.100 05/01/19 1,047,350
1,755 Pittsburgh, PA Urban Redev Auth Mtg Rev Ser A
(GNMA Collateralized)........................... 5.000 10/01/36 1,725,288
1,495 Pittsburgh, PA Urban Redev Auth Mtg Rev Ser C
Rfdg (AMT) (GNMA Collateralized)................ 5.700 04/01/30 1,517,769
1,885 Pittsburgh, PA Wtr & Swr Sys Auth Rev (MBIA
Insd) (b)....................................... 5.000 09/01/24 1,958,308
3,505 Pittsburgh, PA Wtr & Swr Sys Rev First Lien
(MBIA Insd) (b)................................. 5.000 09/01/23 3,644,043
1,500 Radnor Twp, PA Sch Dist Ser B (FSA Insd)........ 5.000 02/15/28 1,555,800
2,000 Rostraver Twp, PA (AMBAC Insd)
(Prerefunded @ 07/01/10)........................ 5.500 07/01/24 2,140,780
1,000 Saxonburg, PA Area Auth Swr & Wtr Rev
(AGL Insd)...................................... 5.000 03/01/30 1,023,760
1,500 Saxonburg, PA Area Auth Swr & Wtr Rev
(AGL Insd)...................................... 5.000 03/01/35 1,529,700
1,300 Schuylkill Vly, PA Sch Dist Ser A (FGIC Insd)... 5.000 04/01/21 1,358,409
2,440 Schuylkill Vly, PA Sch Dist Ser A (FGIC Insd)
(b)............................................. 5.000 04/01/22 2,547,653
350 Scranton, PA Ser B (AMBAC Insd)................. 5.000 09/01/17 366,951
1,000 Southcentral, PA Gen Auth Rev Hanover Hosp Inc
(Radian Insd)................................... 5.000 12/01/30 1,019,810
4,100 Southcentral, PA Gen Auth Rev Wellspan (MBIA
Insd) (Prerefunded @ 05/15/11) (b).............. 5.375 05/15/28 4,428,861
12 See Notes to Financial Statements
VAN KAMPEN PENNSYLVANIA VALUE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
---------------------------------------------------------------------------------------------
PENNSYLVANIA (CONTINUED)
$ 900 Southcentral, PA Gen Auth Rev Wellspan (MBIA
Insd) (b)....................................... 5.375% 05/15/28 $ 957,708
1,000 State Pub Sch Bldg Auth PA Delaware Cnty College
Proj (Prerefunded @ 10/01/10) (MBIA Insd)....... 5.750 10/01/16 1,081,450
1,970 State Pub Sch Bldg Auth PA Montgomery Cnty Cmnty
College Proj (AMBAC Insd) (b)................... 5.000 05/01/23 2,038,595
250 State Pub Sch Bldg Auth PA North Hampton Cnty
Ser A Rfdg (AMBAC Insd)......................... 5.000 03/01/20 259,928
685 State Pub Sch Bldg Auth PA Sch Conneaut Sch Dist
(FGIC Insd) (b)................................. 5.250 11/01/18 730,813
360 State Pub Sch Bldg Auth PA Sch Conneaut Sch Dist
(FGIC Insd)..................................... 5.250 11/01/19 383,195
765 State Pub Sch Bldg Auth PA Sch Conneaut Sch Dist
(FGIC Insd) (b)................................. 5.250 11/01/20 812,621
360 State Pub Sch Bldg Auth PA Sch Conneaut Sch Dist
(FGIC Insd)..................................... 5.250 11/01/22 383,220
895 State Pub Sch Bldg Auth PA Sch Conneaut Sch Dist
(FGIC Insd) (b)................................. 5.250 11/01/23 952,728
2,360 State Pub Sch Bldg Auth PA Sch Rev Jefferson
Cnty Dubois Tech Sch (FGIC Insd) (b)............ 5.375 02/01/23 2,538,015
1,740 State Pub Sch Bldg Auth PA Sch Rev Lease
Colonial Inter Unit 20 (FGIC Insd).............. 5.000 05/15/30 1,795,541
1,270 State Pub Sch Bldg Auth PA Sch Tuscarora Sch
Dist Proj (FSA Insd) (Prerefunded @ 04/01/13)
(b)............................................. 5.250 04/01/21 1,368,743
2,545 Susquehanna Area Regl Arpt Auth PA Arpt Sys Rev
Ser A (AMT) (AMBAC Insd) (b).................... 5.500 01/01/18 2,704,495
2,140 Susquehanna Area Regl Arpt Auth PA Arpt Sys Rev
Ser A (AMT) (AMBAC Insd)........................ 5.375 01/01/21 2,249,696
5,205 Susquehanna Area Regl Arpt Auth PA Arpt Sys Rev
Ser A (AMT) (AMBAC Insd)........................ 5.375 01/01/23 5,462,595
5,500 Susquehanna Area Regl Arpt Auth PA Arpt Sys Rev
Ser D........................................... 5.375 01/01/18 5,550,160
1,950 Swarthmore Boro Auth PA College................. 5.250 09/15/18 2,074,020
2,850 Trinity Area Sch Dist PA (FGIC Insd)............ 5.250 11/01/20 3,027,413
1,000 Union Cnty, PA Higher Ed Fac Auth Bucknell Univ
Ser A........................................... 5.250 04/01/19 1,064,290
1,000 Union Cnty, PA Higher Edl Bucknell Univ Ser A... 5.250 04/01/21 1,062,990
500 Union Cnty, PA Higher Edl Bucknell Univ Ser A... 5.250 04/01/22 531,495
2,300 Union Cnty, PA Hosp Auth Hosp Rev Evangelical
Cmnty Hosp (Radian Insd)........................ 5.250 08/01/24 2,387,975
1,285 Unity Twp, PA Muni Auth Swr Rev (FSA Insd)...... 5.000 12/01/24 1,336,349
5,850 Washington Cnty, PA Ser A (AMBAC Insd).......... 5.125 09/01/27 6,058,904
6,000 West Shore, PA Area Hosp Auth Holy Spirit Hosp
Proj............................................ 6.250 01/01/32 6,310,140
See Notes to Financial Statements 13
VAN KAMPEN PENNSYLVANIA VALUE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
---------------------------------------------------------------------------------------------
PENNSYLVANIA (CONTINUED)
$ 6,865 Westmoreland Cnty, PA Mun Auth Svc Rev Drivers
Ser 1228 (FSA Insd) (Inverse Fltg) (Acquired
1/1/2005, Cost $7,920,219) (d).................. 6.368% 08/15/13 $ 7,739,395
1,485 York Cnty, PA (MBIA Insd)....................... 5.000 06/01/23 1,548,736
1,000 York Cnty, PA (MBIA Insd)....................... 5.000 06/01/26 1,038,960
1,200 York Cnty, PA (MBIA Insd)....................... 5.000 06/01/29 1,242,960
2,200 York Cnty, PA (MBIA Insd)....................... 5.000 06/01/33 2,271,852
1,240 York Cnty, PA Sch Technology Auth Lease Rev
(FGIC Insd)..................................... 5.375 02/15/18 1,327,184
500 York Cnty, PA Sch Technology Auth Lease Rev
(FGIC Insd)..................................... 5.500 02/15/22 538,025
1,000 York Cnty, PA Sch Technology Auth Lease Rev
(FGIC Insd)..................................... 5.500 02/15/23 1,076,050
-------------
578,741,963
-------------
GUAM 0.4%
1,585 Guam Intl Arpt Auth Gen Ser B (MBIA Insd)....... 5.250 10/01/21 1,686,218
-------------
PUERTO RICO 4.6%
2,500 Childrens Tr Fd Puerto Rico Tob Settlement Rev
Asset Bkd....................................... 5.500 05/15/39 2,558,575
5,000 Childrens Tr Fd Puerto Rico Tob Settlement Rev
Asset Bkd....................................... 5.625 05/15/43 5,136,300
4,000 Puerto Rico Comwlth Hwy & Tran Auth Hwy Rev Ser
Y Rfdg (FSA Insd)............................... 6.250 07/01/21 4,825,080
5,000 Puerto Rico Comwlth Infrastructure Fin Auth Spl
Ser B........................................... 5.000 07/01/41 5,003,300
-------------
17,523,255
-------------
U.S. VIRGIN ISLANDS 2.0%
1,500 University Virgin Islands Impt Ser A............ 5.375 06/01/34 1,549,515
1,000 Virgin Islands Pub Fin Auth Rev Gross Rcpt Taxes
Ln Nt Ser A..................................... 6.375 10/01/19 1,095,700
1,500 Virgin Islands Pub Fin Auth Rev Gross Rcpt Taxes
Ln Nt Ser A..................................... 6.500 10/01/24 1,645,320
3,000 Virgin Islands Pub Fin Auth Rev Gross Rcpt Taxes
Ln Nt Ser A (ACA Insd).......................... 6.125 10/01/29 3,253,320
-------------
7,543,855
-------------
TOTAL INVESTMENTS 157.5%
(Cost $584,039,982)........................................................ 605,495,291
LIABILITIES IN EXCESS OF OTHER ASSETS (0.2%)................................ (720,119)
PREFERRED SHARES (INCLUDING ACCRUED DISTRIBUTIONS) (57.3%).................. (220,342,252)
-------------
NET ASSETS APPLICABLE TO COMMON SHARES 100.0%............................... $ 384,432,920
=============
14 See Notes to Financial Statements
VAN KAMPEN PENNSYLVANIA VALUE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
Percentages are calculated as a percentage of net assets applicable to common
shares.
(a) All or a portion of this security has been physically segregated in
connection with open futures contracts.
(b) The Trust owns 100% of the outstanding bond issuance.
(c) Securities purchased on a when-issued or delayed delivery basis.
(d) This security is restricted and may be resold only in transactions exempt
from registration which are normally those transactions with qualified
institutional buyers. Restricted securities comprise 2.0% of net assets
applicable to common shares.
ACA--American Capital Access
AGL--Assured Guarantee Ltd.
AMBAC--AMBAC Indemnity Corp.
AMT--Alternative Minimum Tax
FGIC--Financial Guaranty Insurance Co.
FHA--Federal Housing Administration
FSA--Financial Security Assurance Inc.
GNMA--Government National Mortgage Association
LOC--Letter of Credit
MBIA--Municipal Bond Investors Assurance Corp.
Radian--Radian Asset Assurance
XLCA--XL Capital Assurance Inc.
FUTURES CONTRACTS OUTSTANDING AS OF APRIL 30, 2006:
UNREALIZED
APPRECIATION/
CONTRACTS DEPRECIATION
SHORT CONTRACTS:
U.S. Treasury Notes 5-Year Futures June 2006 (Current
Notional Value of $104,156 per contract).................. 709 $537,959
=== ========
SWAP AGREEMENTS OUTSTANDING AS OF APRIL 30, 2006:
INTEREST RATE SWAPS
PAY/
RECEIVE NOTIONAL UNREALIZED
FLOATING FIXED EXPIRATION AMOUNT APPRECIATION/
COUNTERPARTY FLOATING RATE INDEX RATE RATE DATE (000) DEPRECIATION
JP Morgan
Chase Bank, N.A..... USD-BMA Municipal
Swap Index Receive 4.137% 06/28/26 $12,620 $365,391
JP Morgan
Chase Bank, N.A..... USD-BMA Municipal
Swap Index Receive 4.375 07/11/26 10,500 10,716
-------------
$376,107
=============
See Notes to Financial Statements 15
VAN KAMPEN PENNSYLVANIA VALUE MUNICIPAL INCOME TRUST
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
April 30, 2006 (Unaudited)
ASSETS:
Total Investments (Cost $584,039,982)....................... $605,495,291
Receivables:
Interest.................................................. 9,445,286
Investments Sold.......................................... 2,709,453
Swap Contracts.............................................. 376,107
Other....................................................... 4,228
------------
Total Assets............................................ 618,030,365
------------
LIABILITIES:
Payables:
Investments Purchased..................................... 8,747,651
Custodian Bank............................................ 2,803,980
Investment Advisory Fee................................... 273,742
Variation Margin on Futures............................... 110,781
Income Distributions--Common Shares....................... 70,004
Other Affiliates.......................................... 14,287
Trustees' Deferred Compensation and Retirement Plans........ 1,147,400
Accrued Expenses............................................ 87,348
------------
Total Liabilities....................................... 13,255,193
Preferred Shares (including accrued distributions).......... 220,342,252
------------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $384,432,920
============
NET ASSET VALUE PER COMMON SHARE ($384,432,920 divided by
24,608,103 shares outstanding)............................ $ 15.62
============
NET ASSETS CONSIST OF:
Common Shares ($.01 par value with an unlimited number of
shares authorized, 24,608,103 shares issued and
outstanding).............................................. $ 246,081
Paid in Surplus............................................. 359,819,939
Net Unrealized Appreciation................................. 22,369,375
Accumulated Net Realized Gain............................... 2,049,039
Accumulated Undistributed Net Investment Income............. (51,514)
------------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $384,432,920
============
PREFERRED SHARES ($.01 par value, authorized 100,000,000
shares, 8,800 issued with liquidation preference of
$25,000 per share)........................................ $220,000,000
============
NET ASSETS INCLUDING PREFERRED SHARES....................... $604,432,920
============
16 See Notes to Financial Statements
VAN KAMPEN PENNSYLVANIA VALUE MUNICIPAL INCOME TRUST
FINANCIAL STATEMENTS continued
Statement of Operations
For the Six Months Ended April 30, 2006 (Unaudited)
INVESTMENT INCOME:
Interest.................................................... $12,611,002
-----------
EXPENSES:
Investment Advisory Fee..................................... 1,424,700
Merger Costs................................................ 320,746
Preferred Share Maintenance................................. 258,634
Trustees' Fees and Related Expenses......................... 69,448
Legal....................................................... 26,191
Custody..................................................... 21,197
Other....................................................... 134,006
-----------
Total Expenses.......................................... 2,254,922
Less Credits Earned on Cash Balances.................... 5,096
-----------
Net Expenses............................................ 2,249,826
-----------
NET INVESTMENT INCOME....................................... $10,361,176
===========
REALIZED AND UNREALIZED GAIN/LOSS:
Realized Gain/Loss:
Investments............................................... $ 1,231,023
Futures................................................... 1,103,799
-----------
Net Realized Gain........................................... 2,334,822
-----------
Net Unrealized Appreciation/Depreciation During the Period:
Investments............................................... (5,062,246)
Futures................................................... 71,894
Swap Contracts............................................ 376,107
-----------
Net Unrealized Depreciation During the Period............... (4,614,245)
-----------
NET REALIZED AND UNREALIZED LOSS............................ $(2,279,423)
===========
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS..................... $(3,482,382)
===========
NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM
OPERATIONS................................................ $ 4,599,371
===========
See Notes to Financial Statements 17
VAN KAMPEN PENNSYLVANIA VALUE MUNICIPAL INCOME TRUST
FINANCIAL STATEMENTS continued
Statements of Changes in Net Assets (Unaudited)
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2006 OCTOBER 31, 2005
------------------------------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income................................... $ 10,361,176 $ 4,635,419
Net Realized Gain....................................... 2,334,822 1,057,108
Net Unrealized Depreciation During the Period........... (4,614,245) (3,054,235)
Distributions to Preferred Shareholders:
Net Investment Income................................. (3,205,387) (959,872)
Net Realized Gain..................................... (276,995) (31,280)
------------ -----------
Change in Net Assets Applicable to Common Shares from
Operations............................................ 4,599,371 1,647,140
Distributions to Common Shareholders:
Net Investment Income................................. (7,940,773) (3,914,774)
Net Realized Gain..................................... (1,065,531) (299,032)
------------ -----------
NET CHANGE IN NET ASSETS APPLICABLE TO COMMON SHARES
FROM INVESTMENT ACTIVITIES............................ (4,406,933) (2,566,666)
FROM CAPITAL TRANSACTIONS:
Proceeds from Common Shares Acquired through Merger..... 317,870,416 -0-
------------ -----------
TOTAL INCREASE/DECREASE IN NET ASSETS APPLICABLE TO
COMMON SHARES......................................... 313,463,483 (2,566,666)
NET ASSETS APPLICABLE TO COMMON SHARES:
Beginning of the Period................................. 70,969,437 73,536,103
------------ -----------
End of the Period (Including accumulated undistributed
net investment income of $(51,514) and $324,108,
respectively)......................................... $384,432,920 $70,969,437
============ ===========
18 See Notes to Financial Statements
VAN KAMPEN PENNSYLVANIA VALUE MUNICIPAL INCOME TRUST
FINANCIAL HIGHLIGHTS (UNAUDITED)
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE
TRUST OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, ------------------------------------------------
2006 2005 2004 2003 2002 (F) 2001
-------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF THE PERIOD.... $ 15.85 $ 16.43 $ 16.20 $ 16.12 $ 16.04 $ 14.89
------- ------- ------- ------- ------- -------
Net Investment Income...................... .49(a) 1.03 1.06 1.10 1.14 1.21
Net Realized and Unrealized Gain/Loss...... (.13) (.45) .39 .12 .08 1.07
Common Share Equivalent of Distributions
Paid to Preferred Shareholders:
Net Investment Income.................... (.15) (.21) (.11) (.10) (.15) (.33)
Net Realized Gain........................ (.01) (.01) (.01) -0- -0- -0-
------- ------- ------- ------- ------- -------
Total from Investment Operations........... .20 .36 1.33 1.12 1.07 1.95
Distributions Paid to Common Shareholders:
Net Investment Income.................... (.38) (.87) (1.00) (1.04) (.99) (.80)
Net Realized Gain........................ (.05) (.07) (.10) -0- -0- -0-
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF THE PERIOD.......... $ 15.62 $ 15.85 $ 16.43 $ 16.20 $ 16.12 $ 16.04
======= ======= ======= ======= ======= =======
Common Share Market Price at End of the
Period..................................... $ 13.69 $ 14.26 $ 15.58 $ 16.05 $ 15.85 $ 15.11
Total Return (b)............................ -1.07%* -2.70% 4.15% 8.07% 11.76% 30.60%
Net Assets Applicable to Common Shares at
End of the Period (In millions)............ $ 384.4 $ 71.0 $ 73.5 $ 72.5 $ 72.1 $ 71.7
Ratio of Expenses to Average Net Assets
Applicable to Common Shares (c)............ 1.37% 1.41% 1.51% 1.53% 1.60% 1.83%
Ratio of Net Investment Income to Average
Net Assets Applicable to Common Shares
(c)........................................ 6.29% 6.37% 6.50% 6.76% 7.22% 7.78%
Portfolio Turnover.......................... 15%* 27% 18% 23% 16% 20%
SUPPLEMENTAL RATIOS:
Ratio of Expenses to Average Net Assets
Including Preferred Shares (c)............. .87% .87% .93% .95% .98% 1.11%
Ratio of Net Investment Income to Average
Net Assets Applicable to Common Shares
(d)........................................ 4.34% 5.05% 5.85% 6.13% 6.26% 5.64%
SENIOR SECURITIES:
Total Preferred Shares Outstanding.......... 8,800 1,800 1,800 1,800 1,800 1,800
Asset Coverage Per Preferred Share (e)...... $68,724 $64,436 $65,858 $65,259 $65,061 $64,811
Involuntary Liquidating Preference Per
Preferred Share............................ $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
Average Market Value Per Preferred Share.... $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
* Non-Annualized
(a) Based on average shares outstanding.
(b) Total return assumes an investment at the common share market price at the
beginning of the period indicated, reinvestment of all distributions for the
period in accordance with the Trust's dividend reinvestment plan, and sale
of all shares at the closing common share market price at the end of the
period indicated.
(c) Ratios do not reflect the effect of dividend payments to preferred
shareholders.
(d) Ratios reflect the effect of dividend payments to preferred shareholders.
(e) Calculated by subtracting the Trust's total liabilities (not including the
preferred shares) from the Trust's total assets and dividing this by the
number of preferred shares outstanding.
(f) As required, effective November 1, 2001, the Trust has adopted the
provisions of the AICPA Audit and Accounting Guide for Investment Companies
and began accreting market discount on fixed income securities. The effect
of this change for the year ended October 31, 2002 was to increase net
investment income per share by $.01, decrease net realized and unrealized
gains and losses per share by $.01 and increase the ratio of net investment
income to average net assets applicable to common shares by .08%. Per share,
ratios and supplemental data for periods prior to October 31, 2002 have not
been restated to reflect this change in presentation.
See Notes to Financial Statements 19
VAN KAMPEN PENNSYLVANIA VALUE MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2006 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen Pennsylvania Value Municipal Income Trust (the "Trust") is registered
as a non-diversified, closed-end management investment company under the
Investment Company Act of 1940 (the "1940 Act"), as amended. The Trust's
investment objective is to seek to provide a high level of current income exempt
from federal and Pennsylvania income taxes and, where possible under local law,
local income and personal property taxes, consistent with preservation of
capital. The Trust will invest substantially all of its assets in Pennsylvania
municipal securities rated investment grade at the time of investment, but may
invest up to 20% of its assets in unrated securities which are believed to be of
comparable quality to those rated investment grade. The Trust commenced
investment operations on April 30, 1993.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
A. SECURITY VALUATION Municipal bonds are valued by independent pricing services
or dealers using the mean of the bid and asked prices or, in the absence of
market quotations, at fair value based upon yield data relating to municipal
bonds with similar characteristics and general market conditions. Securities
which are not valued by independent pricing services or dealers are valued at
fair value using procedures established in good faith by the Board of Trustees.
Futures contracts are valued at the settlement price established each day on the
exchange on which they are traded. Short-term securities with remaining
maturities of 60 days or less are valued at amortized cost, which approximates
market value.
B. SECURITY TRANSACTIONS Security transactions are recorded on a trade date
basis. Realized gains and losses are determined on an identified cost basis. The
Trust may purchase and sell securities on a "when-issued" or "delayed delivery"
basis, with settlement to occur at a later date. The value of the security so
purchased is subject to market fluctuations during this period. The Trust will
segregate assets with the custodian having an aggregate value at least equal to
the amount of the when-issued or delayed delivery purchase commitments until
payment is made. As of April 30, 2006, the Trust had $8,747,651 of when-issued
and delayed delivery purchase commitments.
C. INVESTMENT INCOME Interest income is recorded on an accrual basis. Bond
premium is amortized and discount is accreted over the expected life of each
applicable security.
D. FEDERAL INCOME TAXES It is the Trust's policy to comply with the requirements
of Subchapter M of the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all of its taxable income to its
shareholders. Therefore, no provision for federal income taxes is required.
20
VAN KAMPEN PENNSYLVANIA VALUE MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2006 (UNAUDITED) continued
At April 30, 2006, the cost and related gross unrealized appreciation and
depreciation are as follows:
Cost of investments for tax purposes........................ $583,535,483
============
Gross tax unrealized appreciation........................... $ 24,000,676
Gross tax unrealized depreciation........................... (2,040,868)
------------
Net tax unrealized appreciation on investments.............. $ 21,959,808
============
E. DISTRIBUTION OF INCOME AND GAINS The Trust declares and pays monthly
dividends from net investment income to common shareholders. Net realized gains,
if any, are distributed annually on a pro rata basis to common and preferred
shareholders. Distributions from net realized gains for book purposes may
include short-term capital gains, and gains on futures transactions. All
short-term capital gains and a portion of futures gains are included as ordinary
income for tax purposes.
The tax character of distributions paid during the year ended October 31,
2005 was as follows:
Distributions paid from:
Ordinary income........................................... $ 0
Tax-exempt income......................................... 4,869,836
Long term capital gain.................................... 330,312
----------
$5,200,148
==========
As of October 31, 2005, the components of distributable earnings on a tax
basis were as follows:
Undistributed ordinary income............................... $ 294,915
Undistributed tax-exempt income............................. 416,060
Undistributed long-term capital gain........................ 1,102,088
F. EXPENSE REDUCTIONS During the six months ended April 30, 2006, the Trust's
custody and accounting fees were reduced by $4,975 and $121, respectively, as a
result of credits earned on cash balance.
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of the Trust's Investment Advisory Agreement, Van Kampen Asset
Management (the "Adviser") will provide investment advice and facilities to the
Trust for an annual fee payable monthly of .55% of the average daily net assets
of the Trust.
For the six months ended April 30, 2006, the Trust recognized expenses of
approximately $9,300 representing legal services provided by Skadden, Arps,
Slate, Meagher & Flom LLP, of which a trustee of the Trust is a partner of such
firm and he and his law firm provide legal services as legal counsel to the
Trust.
21
VAN KAMPEN PENNSYLVANIA VALUE MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2006 (UNAUDITED) continued
Under separate Legal Services, Accounting Services and Chief Compliance
Officer (CCO) Employment agreements, the Adviser provides accounting and legal
services and the CCO provides compliance services to the Trust. The costs of
these securities are allocated to each Trust. For the six months ended April 30,
2006, the Trust recognized expenses of approximately $30,500, representing Van
Kampen Investments Inc.'s or its affiliates' (collectively "Van Kampen") cost of
providing accounting and legal services to the Trust, as well as, the salary,
benefits and related costs of the CCO and related support staff paid by Van
Kampen. Services provided pursuant to the Legal Services agreement are reported
as part of "Legal" expenses on the Statement of Operations. Services provided
pursuant to the Accounting Services and CCO Employment agreement are reported as
part of "Other" expenses on the Statement of Operations.
Certain officers and trustees of the Trust are also officers and directors
of Van Kampen. The Trust does not compensate its officers or trustees who are
also officers of Van Kampen.
The Trust provides deferred compensation and retirement plans for its
trustees who are not officers of Van Kampen. Under the deferred compensation
plan, trustees may elect to defer all or a portion of their compensation to a
later date. Benefits under the retirement plan are payable upon retirement for a
ten-year period and are based upon each trustee's years of service to the Trust.
The maximum annual benefit per trustee under the plan is $2,500.
3. CAPITAL TRANSACTIONS
For the six months ended April 30, 2006, and the year ended October 31, 2005,
transactions in common shares were as follows:
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2006 OCTOBER 31, 2005
Beginning Shares........................................ 4,476,965 4,476,965
Shares Issued Through Merger............................ 20,131,138 -0-
---------- ---------
Ending Shares........................................... 24,608,103 4,476,965
========== =========
On December 2, 2005, the Trust acquired all of the assets and liabilities of
the Van Kampen Advantage Pennsylvania Municipal Income Trust (ticker symbol
VAP), Pennsylvania Quality Municipal Income Trust (ticker symbol VPQ) and Trust
for Investment Grade Pennsylvania Municipals (ticker symbol VTP) through a tax
free reorganization approved by VAP, VPQ and VTP Trust shareholders on November
22, 2005. The trust issued 20,131,138 common shares and 7,000 Auction Preferred
Shares (APS) valued at $317,870,416 and $175,000,000, respectively, in exchange
for VAP's, VPQ's, and VTP's net assets. The shares of VAP Trust were converted
into Trust shares at a ratio of 1.005624 to 1 and 1 to 1, for common shares and
APS, respectively. The shares of VPQ Trust were converted into Trust shares at a
ratio of 1.002660 to 1 and 1 to 1, for common shares and APS, respectively. The
shares of VTP Trust were converted into Trust shares at a ratio of 1.002103 to 1
and 1 to 1, for common shares and APS, respectively. Net realized appreciation
of VAP, VPQ and VTP Trust as of December 2, 2005 was $22,548,134. The Trust
assumed VAP, VPQ, and VTP's book to tax accretion differences, which resulted in
a $409,362 increase to accumulated undistributed net investment income and a
corresponding decrease to net unrealized appreciation. Shares issued in
connection with this reorganization are included in proceeds
22
VAN KAMPEN PENNSYLVANIA VALUE MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2006 (UNAUDITED) continued
from shares sold for the six months ended April 30, 2006. Combined net assets
applicable to common shares on the day of reorganization were $388,563,174 and
net assets including preferred shares were $608,563,174. The Trust incurred
merger expenses of $320,746, which represent costs related to the preparation,
printing, and distribution of the Proxy Statement/Prospectus, Reorganization
Agreement and registration statements as well as legal, audit, and filing fees.
4. INVESTMENT TRANSACTIONS
During the period, the cost of purchases and proceeds from sales of investments,
excluding short-term investments, were $79,797,423 and $68,051,298,
respectively.
5. DERIVATIVE FINANCIAL INSTRUMENTS
A derivative financial instrument in very general terms refers to a security
whose value is "derived" from the value of an underlying asset, reference rate
or index.
In order to seek to manage the interest rate exposure of the Trust's
portfolio in a changing interest rate environment, the Trust may purchase or
sell financial futures contracts or engage in transactions involving interest
rate swaps, caps, floors or collars. The Trust expects to enter into these
transactions primarily as a hedge against anticipated interest rate or fixed
income market changes, for duration management or for risk management purposes,
but may also enter into these transactions to generate additional income. All of
the Trust's portfolio holdings, including derivative instruments, are marked to
market each day with the change in value reflected in the unrealized
appreciation/depreciation. Upon disposition, a realized gain or loss is
recognized accordingly, except when taking delivery of a security underlying a
futures contract. In this instance, the recognition of gain or loss is postponed
until the disposal of the security underlying the futures contract.
Summarized below are the specific types of derivative financial instruments
used by the Trust.
A. FUTURES CONTRACTS A futures contract is an arrangement involving the delivery
of a particular asset on a specified future date at an agreed upon price. The
Trust generally invests in exchange traded futures contracts on U.S. Treasury
securities and typically closes the contract prior to the delivery date. These
contracts are generally used to manage the Trust's effective maturity and
duration. Upon entering into futures contracts, the Trust maintains an amount of
cash or liquid securities with a value equal to a percentage of the contract
amount with either a futures commission merchant pursuant to the rules and
regulations promulgated under the 1940 Act, as amended, or with its custodian in
an account in the broker's name. This amount is known as initial margin. During
the period the futures contract is open, payments are received from or made to
the broker based upon changes in the value of the contract (the variation
margin). The risk of loss associated with a futures contract is in excess of the
variation margin reflected on the Statement of Assets and Liabilities.
23
VAN KAMPEN PENNSYLVANIA VALUE MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2006 (UNAUDITED) continued
Transactions in futures contracts for the six months ended April 30, 2006
were as follows:
CONTRACTS
Outstanding at October 31, 2005............................. 245
Futures Opened.............................................. 3,129
Futures Closed.............................................. (2,665)
------
Outstanding at April 30, 2006............................... 709
======
B. INTEREST RATE SWAPS The Trust may enter into interest rate swaps primarily to
preserve a return or spread on a particular investment or portion of its
portfolio, as a duration management technique or to protect against any increase
in the price of securities the Trust anticipates purchasing at a later date.
Interest rate swaps are contractual agreements to exchange periodic interest
payment streams calculated on a predetermined notional principal amount.
Interest rate swaps generally involve one party paying a fixed interest rate and
the other party paying a variable rate. The Trust will usually enter into swaps
on a net basis, i.e, the two payment streams are netted out in a cash settlement
on the payment date or dates specified in the instrument, with the Trust
receiving or paying, as the case may be, only the net amount of the two
payments. The Trust accrues the net amount with respect to each swap on a daily
basis. This net amount is recorded within unrealized appreciation/depreciation
on swap contracts. Upon cash settlement of the periodic payments, the net amount
is recorded as realized gain/loss on swap contracts on the Statement of
Operations. Risks may arise as a result of the potential inability of the
counterparties to meet the terms of their contracts. If there is a default by
the counterparty, the Trust will have contractual remedies pursuant to the
agreements related to the transaction.
C. INDEXED SECURITIES The Trust invests in indexed securities. These instruments
are identified in the Portfolio of Investments. The price of these securities
may be more volatile than the price of a comparable fixed rate security.
An inverse floating rate security is one where the coupon is inversely
indexed to a short-term floating interest rate multiplied by a specific factor.
As the floating rate rises, the coupon is reduced. Conversely, as the floating
rate declines, the coupon is increased. These instruments are typically used by
the Trust to enhance the yield of the portfolio.
6. PREFERRED SHARES
As of April 30, 2006, the Trust has outstanding 8,800 APS. Series A contains
1,800 shares, Series B contains 1,600 shares, Series C contains 2,600 shares,
and Series D contains 2,800 shares. Dividends are cumulative and the dividend
rates are generally reset every 7 days for Series A, while Series B, Series C,
and Series D are generally reset every 28 days through an auction process. The
average rate in effect on April 30, 2006 was 3.540%. During the six months ended
April 30, 2006, the rates ranged from 2.680% to 5.250%.
The Trust pays annual fees equivalent to .25% of the preferred share
liquidation value for the remarketing efforts associated with the preferred
auctions. These fees are included as a component of "Preferred Share
Maintenance" expense on the Statement of Operations.
The APS are redeemable at the option of the Trust in whole or in part at the
liquidation value of $25,000 per share plus accumulated and unpaid dividends.
The Trust is subject to
24
VAN KAMPEN PENNSYLVANIA VALUE MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2006 (UNAUDITED) continued
certain asset coverage tests and the APS are subject to mandatory redemption if
the tests are not met.
7. INDEMNIFICATIONS
The Trust enters into contracts that contain a variety of indemnifications. The
Trust's maximum exposure under these arrangements is unknown. However, the Trust
has not had prior claims or losses pursuant to these contracts and expects the
risk of loss to be remote.
25
VAN KAMPEN PENNSYLVANIA VALUE MUNICIPAL INCOME TRUST
BOARD OF TRUSTEES, OFFICERS AND IMPORTANT ADDRESSES
BOARD OF TRUSTEES
DAVID C. ARCH
JERRY D. CHOATE
ROD DAMMEYER
LINDA HUTTON HEAGY
R. CRAIG KENNEDY
HOWARD J KERR
JACK E. NELSON
HUGO F. SONNENSCHEIN
WAYNE W. WHALEN* - Chairman
SUZANNE H. WOOLSEY
OFFICERS
RONALD E. ROBISON
President and Principal Executive Officer
DENNIS SHEA
Vice President
J. DAVID GERMANY
Vice President
AMY R. DOBERMAN
Vice President
STEFANIE V. CHANG
Vice President and Secretary
JOHN L. SULLIVAN
Chief Compliance Officer
PHILLIP G. GOFF
Chief Financial Officer and Treasurer
INVESTMENT ADVISER
VAN KAMPEN ASSET MANAGEMENT
1221 Avenue of the Americas
New York, New York 10020
CUSTODIAN
STATE STREET BANK AND TRUST COMPANY
One Lincoln Street
Boston, Massachusetts 02111
TRANSFER AGENT
COMPUTERSHARE TRUST COMPANY, N.A.
c/o Computershare Investor Services
P.O. Box 43010
Providence, Rhode Island 02940-3010
LEGAL COUNSEL
SKADDEN, ARPS, SLATE,
MEAGHER & FLOM LLP
333 West Wacker Drive
Chicago, Illinois 60606
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
DELOITTE & TOUCHE LLP
111 South Wacker Drive
Chicago, Illinois 60606
* "Interested persons" of the Trust, as defined in the Investment Company Act
of 1940, as amended.
26
VAN KAMPEN PENNSYLVANIA VALUE MUNICIPAL INCOME TRUST
RESULTS OF SHAREHOLDER VOTES
With regard to the approval of the issuance of additional Common shares of the
Trust, a meeting was held on November 22, 2005, and the results of the votes
from the Common shareholders are as follows:
# OF SHARES
--------------------------------------
IN FAVOR AGAINST WITHHELD
--------------------------------------------------------------------------------------------
Common.............................................. 2,238,707 156,968 98,702
27
Van Kampen Pennsylvania Value Municipal Income Trust
An Important Notice Concerning Our U.S. Privacy Policy
We are required by federal law to provide you with a copy of our Privacy
Policy annually.
The following Policy applies to current and former individual clients of Van
Kampen Investments Inc., Van Kampen Asset Management, Van Kampen Advisors
Inc., Van Kampen Funds Inc., Van Kampen Investor Services Inc. and Van
Kampen Exchange Corp., as well as current and former individual investors in
Van Kampen mutual funds, unit investment trusts, and related companies.
This Policy is not applicable to partnerships, corporations, trusts or other
non-individual clients or account holders, nor is this Policy applicable to
individuals who are either beneficiaries of a trust for which we serve as
trustee or participants in an employee benefit plan administered or advised
by us. This Policy is, however, applicable to individuals who select us to
be a custodian of securities or assets in individual retirement accounts,
401(k) accounts, 529 Educational Savings Accounts, accounts subject to the
Uniform Gifts to Minors Act, or similar accounts.
Please note that we may amend this Policy at any time, and will inform you
of any changes to this Policy as required by law.
WE RESPECT YOUR PRIVACY
We appreciate that you have provided us with your personal financial
information. We strive to maintain the privacy of such information while we
help you achieve your financial objectives. This Policy describes what
non-public personal information we collect about you, why we collect it, and
when we may share it with others.
We hope this Policy will help you understand how we collect and share
non-public personal information that we gather about you. Throughout this
Policy, we refer to the non-public information that personally identifies
you or your accounts as "personal information."
1. WHAT PERSONAL INFORMATION DO WE COLLECT ABOUT YOU?
To serve you better and manage our business, it is important that we collect
and maintain accurate information about you. We may obtain this information
from applications and other forms you submit to us, from your dealings with
us, from consumer reporting agencies, from our Web sites and from third
parties and other sources.
(continued on next page)
Van Kampen Pennsylvania Value Municipal Income Trust
An Important Notice Concerning Our U.S. Privacy Policy continued
For example:
-- We may collect information such as your name, address, e-mail address,
telephone/fax numbers, assets, income and investment objectives through
applications and other forms you submit to us.
-- We may obtain information about account balances, your use of
account(s) and the types of products and services you prefer to receive
from us through your dealings and transactions with us and other
sources.
-- We may obtain information about your creditworthiness and credit
history from consumer reporting agencies.
-- We may collect background information from and through third-party
vendors to verify representations you have made and to comply with
various regulatory requirements.
-- If you interact with us through our public and private Web sites, we
may collect information that you provide directly through online
communications (such as an e-mail address). We may also collect
information about your Internet service provider, your domain name,
your computer's operating system and Web browser, your use of our Web
sites and your product and service preferences, through the use of
"cookies." "Cookies" recognize your computer each time you return to
one of our sites, and help to improve our sites' content and
personalize your experience on our sites by, for example, suggesting
offerings that may interest you. Please consult the Terms of Use of
these sites for more details on our use of cookies.
2. WHEN DO WE DISCLOSE PERSONAL INFORMATION WE COLLECT ABOUT YOU?
To provide you with the products and services you request, to serve you
better and to manage our business, we may disclose personal information we
collect about you to our affiliated companies and to non-affiliated third
parties as required or permitted by law.
A. INFORMATION WE DISCLOSE TO OUR AFFILIATED COMPANIES. We do not disclose
personal information that we collect about you to our affiliated companies
except to enable them to provide services on our behalf or as otherwise
required or permitted by law.
(continued on back)
Van Kampen Pennsylvania Value Municipal Income Trust
An Important Notice Concerning Our U.S. Privacy Policy continued
B. INFORMATION WE DISCLOSE TO THIRD PARTIES. We do not disclose personal
information that we collect about you to non-affiliated third parties except
to enable them to provide services on our behalf, to perform joint marketing
agreements with other financial institutions, or as otherwise required or
permitted by law. For example, some instances where we may disclose
information about you to non-affiliated third parties include: for servicing
and processing transactions, to offer our own products and services, to
protect against fraud, for institutional risk control, to respond to
judicial process or to perform services on our behalf. When we share
personal information with these companies, they are required to limit their
use of personal information to the particular purpose for which it was
shared and they are not allowed to share personal information with others
except to fulfill that limited purpose.
3. HOW DO WE PROTECT THE SECURITY AND CONFIDENTIALITY OF PERSONAL
INFORMATION WE COLLECT ABOUT YOU?
We maintain physical, electronic and procedural security measures to help
safeguard the personal information we collect about you. We have internal
policies governing the proper handling of client information. Third parties
that provide support or marketing services on our behalf may also receive
personal information, and we require them to adhere to confidentiality
standards with respect to such information.
Van Kampen Funds Inc.
1 Parkview Plaza
P.O. Box 5555
Oakbrook Terrace, IL 60181-5555
www.vankampen.com
Copyright (C)2006 Van Kampen Funds Inc. All rights reserved.
Member NASD/SIPC.
VPV SAR 6/06
(VAN KAMPEN INVESTMENTS SHINE LOGO) RN06-01534P-Y04/06
Item 2. Code of Ethics.
Not applicable for semi-annual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable for semi-annual reports.
Item 6. Schedule of Investments.
Please refer to Item #1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable for semi-annual reports.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable for semi-annual reports.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. Controls and Procedures
(a) The Trust's principal executive officer and principal financial officer have
concluded that the Trust's disclosure controls and procedures are sufficient to
ensure that information required to be disclosed by the Trust in this Form
N-CSRS was recorded, processed, summarized and reported within the time periods
specified in the Securities and Exchange Commission's rules and forms, based
upon such officers' evaluation of these controls and procedures as of a date
within 90 days of the filing date of the report.
(b) There were no changes in the registrant's internal control over financial
reporting that occurred during the second fiscal quarter of the period covered
by this report that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting.
Item 12. Exhibits.
(1) Code of Ethics - Not applicable for semi-annual reports.
(2)(a) A certification for the Principal Executive Officer of the registrant is
attached hereto as part of EX-99.CERT.
(2)(b) A certification for the Principal Financial Officer of the registrant is
attached hereto as part of EX-99.CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Van Kampen Pennsylvania Value Municipal Income Trust
By: /s/ Ronald E. Robison
--------------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: June 20, 2006
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed by the following
persons on behalf of the registrant and in the capacities and on the dates
indicated.
By: /s/ Ronald E. Robison
--------------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: June 20, 2006
By: /s/ Phillip G. Goff
--------------------------
Name: Phillip G. Goff
Title: Principal Financial Officer
Date: June 20, 2006