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 811-7404
Van Kampen California Value Municipal Income Trust
(Exact name of registrant as specified in charter)
1221 Avenue of the Americas, New York, New York 10020
(Address of principal executive offices) (Zip code)
Ronald Robison
1221 Avenue of the Americas, New York, New York 10020
(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: 4/30/07
Item 1. Report to Shareholders.
The Trust's semi-annual 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
California 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 trust's financial statements and a list of trust
investments as of April 30, 2007.
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).
---------------------------------------------------------------------------------------
NOT FDIC INSURED OFFER NO BANK GUARANTEE MAY LOSE VALUE
---------------------------------------------------------------------------------------
NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY NOT A DEPOSIT
---------------------------------------------------------------------------------------
Performance Summary as of 4/30/07
CALIFORNIA VALUE MUNICIPAL INCOME TRUST
SYMBOL: VCV
------------------------------------------------------------
AVERAGE ANNUAL BASED ON BASED ON
TOTAL RETURNS NAV MARKET PRICE
Since Inception (4/30/93) 7.16% 7.26%
10-year 7.58 9.27
5-year 7.37 8.80
1-year 7.58 14.27
6-month 1.59 8.85
------------------------------------------------------------
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 Trust's advisor has waived or reimbursed fees and
expenses from time to time; absent such waivers/reimbursements the Trust's
returns would have been lower.
The Lehman Brothers California Municipal Bond Index is a broad-based statistical
composite of California municipal bonds. The index does not include any
expenses, fees or sales charges, which would lower performance. The index is
unmanaged and should not be considered an investment. It is not possible to
invest directly in an index.
1
Trust Report
FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2007
MARKET CONDITIONS
The overall environment for municipal bonds was favorable during the reporting
period, but mixed economic indicators and concerns about the residential housing
sector led to increased market uncertainty and volatility. At the beginning of
the period, the pace of economic growth appeared to be slowing, but in December,
the outlook for the economy turned positive following a slate of
stronger-than-expected economic releases. The improved economic picture pushed
bond yields higher and effectively reversed the run-up in prices that had begun
in July on concern over the weak housing market's potential drag on the economy.
Bonds continued to decline until February, when the sub-prime mortgage market
showed signs of deterioration, causing a sell-off in equities and a
flight-to-quality bond market rally. In March, the rally ended as strong
employment reports and upward movement in inflationary pressures sparked selling
in an overbought Treasury market. At month end, however, the short end of the
bond market rebounded strongly following news that the Federal Open Market
Committee (the "Fed") had dropped its bias toward higher rates. This came as
somewhat of a surprise, given the fact that core inflation readings remained
elevated.
Municipal bond yields followed the general movement of the Treasury market.
However, the 30-year AAA municipal yield reached lows not seen in decades,
declining to 4.00 percent in the first half of the reporting period before
reversing course and ending the period higher at 4.10 percent. Yields on the
short end of the municipal curve rose more than long-term yields during the
period. As a result, the short end of the curve posted the lowest returns while
the long end outperformed other portions of the curve by as much as 70 basis
points. The slope of the municipal curve (which is defined by the traditional
yield advantage of bonds with longer maturities) still remained relatively flat
and as such, the yield differential between long maturity and short maturity
issues was quite small.
New issue supply rose dramatically during the period, increasing by 34 percent
versus the same six-month period a year ago, as relatively low interest rates
spurred municipalities to refinance their debt. Demand for municipal bonds was
robust as well, particularly for high-yield securities as investors proved
increasingly willing to take on more risk in return for relatively higher
yields. The strong demand caused most credit spreads, which were already near
historically tight levels, to further narrow. As a result, the lower-quality,
higher yielding segment of the market considerably outperformed, returning 182
basis points more than the investment-grade segment for the overall period.
The State of California was the country's leading issuer of municipal bonds
during the period, with new issuance rising by 84 percent. California remains
2
on a generally good economic footing. While a slowdown in the real estate sector
dampened the state's economy, it did not stall growth as expansion in the
service sector helped to offset continued weakness in real estate related
employment. In addition, good revenue growth led the state to project that the
budget for fiscal 2007 will end slightly better than originally estimated.
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, the Trust underperformed its benchmark index, the
Lehman Brothers California Municipal Bond Index. On a market price basis, the
Trust outperformed its benchmark.
TOTAL RETURNS FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2007
-----------------------------------------------------------------
BASED ON BASED ON LEHMAN BROTHERS CALIFORNIA
NAV MARKET PRICE MUNICIPAL BOND INDEX
1.59% 8.85% 1.70%
-----------------------------------------------------------------
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.
A variety of strategies drove the Trust's performance during the course of the
period. One of the key drivers was our focus on the long end of the yield curve.
Given the relatively flat shape of the curve throughout the period, we invested
in bonds with maturities of 25 years or more in order to capture more attractive
yields. The emphasis on longer-maturity issues proved beneficial to performance
as this segment of the curve outperformed for the overall period.
We also focused on the higher-yielding sector of the market, adding to positions
in BBB rated credits in particular, which represented approximately 18 percent
of Trust holdings at the end of the period. Additionally, in an effort to
further enhance yield, we added to the Trust's holdings of inverse floating-rate
securities.* These strategies were additive to the Trust's performance during
the first four months of the period. In the last two months, however, spread
widening led the performance of lower-rated credits to wane and rising interest
rates hurt the performance of inverse floating-rate securities. As a result, the
Trust's emphasis on these credits detracted somewhat from performance late in
*An inverse floating-rate security, or "inverse floater", is a variable rate
security whose coupon rate changes in the opposite direction from the change in
the reference rate used to calculate the coupon rate.
3
the period. Because the inverse floating-rate securities effectively added to
the portfolio's duration (a measure of interest-rate risk), we hedged that risk
by selling 30-year U.S. Treasury futures. This strategy was additive to
performance for the overall period and served to keep the Trust's duration
neutral relative to that of the Lehman Brothers California Municipal Bond Index.
The primary contributors to the Trust's underperformance versus the Lehman
Brothers California Municipal Bond Index were its holdings in health care and
housing bonds. Over the course of the period, an increasing supply of bonds in
these sectors led to spread widening that adversely affected performance. This,
coupled with the portfolio's overweight to the sectors relative to the Lehman
Brothers California Municipal Bond Index, detracted from returns. The Trust was
also overweighted in BBB rated tobacco revenue bonds. This positioning proved
additive to performance not only because these holdings performed well but also
because several of the credits were refunded during the period.
The Trust remained well represented across a broad spectrum of municipal market
sectors. As of the end of the period, tax-allocation/increment, hospital, and
public education bonds represented the portfolio's largest sector weightings.
The Trustees have approved a procedure whereby the trust may, when appropriate,
repurchase its shares in the open market or in privately negotiated transactions
at a price not above market value or NAV, whichever is lower at the time of
purchase. This may help support the market value of the trust's shares.
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.
4
TOP FIVE SECTORS AS OF 4/30/07
Tax Allocation/Increment 13.3%
Hospital 11.1
Public Education 11.0
Master Tobacco Settlement 9.8
Higher Education 7.5
RATINGS ALLOCATION AS OF 4/30/07
AAA/Aaa 57.2%
AA/Aa 10.5
A/A 5.9
BBB/Baa 18.1
Non-Rated 8.3
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 total 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.
5
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) 341-2929.
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) 341-2929 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.
6
VAN KAMPEN CALIFORNIA VALUE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2007 (UNAUDITED)
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
---------------------------------------------------------------------------------------------
MUNICIPAL BONDS 178.7%
CALIFORNIA 172.4%
$ 3,390 Abag Fin Auth For Nonprofit Corp CA Ctf Partn
Childrens Hosp Med Ctr (AMBAC Insd)........... 5.875% 12/01/19 $ 3,603,977
500 Abag Fin Auth For Nonprofit Corp CA Ctf Partn
Childrens Hosp Med Ctr (AMBAC Insd)........... 6.000 12/01/29 530,860
2,000 Abag Fin Auth For Nonprofit Corp CA Insd Rev
Ctf Lincoln Glen Manor Sr Citizens (CA MTG
Insd)......................................... 6.100 02/15/25 2,046,820
4,000 Abag Fin Auth For Nonprofit Corp CA
Multi-Family Rev Hsg Utd Dominion Rfdg Ser A
(GTY AGMT) (AMT).............................. 6.400 08/15/30 4,116,080
1,000 Abag Fin Auth For Nonprofit Corp CA
Multi-Family Rev Hsg Utd Dominion Rfdg Ser B
(GTY AGMT).................................... 6.250 08/15/30 1,027,470
1,020 A B C CA Uni Sch Dist Cap Apprec Ser B (FGIC
Insd)......................................... * 08/01/17 672,394
2,000 A B C CA Uni Sch Dist Cap Apprec Ser B (FGIC
Insd)......................................... * 08/01/21 1,095,220
1,610 A B C CA Uni Sch Dist Cap Apprec Ser B (FGIC
Insd)......................................... * 08/01/22 841,402
1,205 Alameda Cnty, CA Wtr Dist Rev Rfdg (MBIA
Insd)......................................... 4.750 06/01/20 1,226,618
1,000 Allan Hancock CA Jt Cmnty College Dist
Election 2006 Ser A (FSA Insd)................ 4.375 08/01/31 985,230
3,540 Anaheim, CA Pub Fin Auth Lease Rev Cap Apprec
Pub Impt Proj Ser C (FSA Insd)................ * 09/01/32 1,135,101
2,790 Banning, CA Cmnty Redev Agy Tax Alloc Merged
Downtown (Radian Insd)........................ 5.000 08/01/23 2,892,477
2,510 Bay Area Govt Assn CA Lease West Sacramento
Ser A (XLCA Insd) (b)......................... 5.000 09/01/24 2,646,042
5,000 Bay Area Toll Auth CA Toll Brdg Rev San
Francisco Bay Area Ser D...................... 5.000 04/01/17 5,232,750
975 Benicia, CA Uni Sch Dist Ser B (MBIA Insd).... * 08/01/18 557,963
1,000 Beverly Hills, CA Pub Fin Auth Wtr Rev........ 4.375 06/01/37 985,150
1,725 Bonita, CA Uni Sch Dist Election 2004 Ser A
(MBIA Insd) (b)............................... 5.250 08/01/22 1,877,593
1,055 Borrego, CA Wtr Dist Ctf Partn Wtr Sys
Acquisition (b)............................... 7.000 04/01/27 1,087,336
3,535 Brea, CA Redev Agy Tax Alloc Rfdg Ser A (AMBAC
Insd) (b)..................................... 5.500 08/01/20 3,806,771
1,390 Brea & Olinda, CA Uni Sch Dist Ctf Partn Rfdg
Ser A (FSA Insd) (b).......................... 5.500 08/01/19 1,500,283
1,510 Brea & Olinda, CA Uni Sch Dist Ctf Partn Rfdg
Ser A (FSA Insd) (b).......................... 5.500 08/01/20 1,629,803
1,500 Burbank, CA Pub Fin Auth Rev Golden St Redev
Proj Ser A (AMBAC Insd)....................... 5.250 12/01/23 1,603,545
2,060 Burbank, CA Wastewtr Treatment Rev Ser A
(AMBAC Insd).................................. 5.000 06/01/29 2,161,970
2,060 Calexico, CA Uni Sch Dist Ser A (MBIA Insd)
(b)........................................... 5.000 08/01/27 2,195,672
See Notes to Financial Statements 7
VAN KAMPEN CALIFORNIA VALUE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2007 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
---------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
$ 3,000 California Cnty, CA Tob Sec Agy Tob Asset Bkd
Los Angeles Cnty Sec (c)...................... 0/5.450% 06/01/28 $ 2,625,840
2,000 California Cnty, CA Tob Sec Agy Tob Merced
Cnty Rfdg Ser A............................... 5.125 06/01/38 2,006,480
5,000 California Cnty, CA Tob Sec Agy Tob Merced
Cnty Rfdg Ser A............................... 5.250 06/01/45 5,062,850
5,000 California Cnty, CA Tob Sec Agy Tob Sonoma
Cnty Corp Rfdg................................ 5.125 06/01/38 5,006,350
2,000 California Ed Fac Auth Rev CA College Arts.... 5.000 06/01/35 2,050,040
1,500 California Ed Fac Auth Rev Golden Gate Univ... 5.000 10/01/36 1,538,805
1,000 California Ed Fac Auth Rev Pitzer College Ser
A............................................. 5.000 04/01/30 1,044,480
3,210 California Ed Fac Auth Rev Pitzer College Ser
A............................................. 5.000 04/01/35 3,335,318
2,000 California Ed Fac Auth Rev Pooled College &
Univ Proj Ser B............................... 5.250 04/01/24 2,046,500
1,000 California Ed Fac Auth Rev Pooled College &
Univ Ser B.................................... 6.625 06/01/20 1,074,350
2,000 California Ed Fac Auth Rev Pooled College &
Univ Ser B.................................... 6.750 06/01/30 2,147,140
1,500 California Ed Fac Auth Rev Univ of Redlands
Ser A......................................... 5.000 10/01/31 1,568,070
2,000 California Hlth Fac Fin Auth Rev Cedars Sinai
Med Ctr Rfdg.................................. 5.000 11/15/27 2,065,920
11,505 California Hlth Fac Fin Auth Rev Cedars Sinai
Med Ctr Rfdg (d).............................. 5.000 11/15/34 11,818,626
1,890 California Hlth Fac Fin Auth Rev Insd Hlth Fac
Vlycare Ser A (CA MTG Insd)................... 6.125 05/01/12 1,893,232
1,100 California Hlth Fac Fin Auth Rev Kaiser
Permanente Ser A.............................. 5.000 04/01/37 1,130,635
700 California Hlth Fac Fin Auth Rev Kaiser
Permanente Ser A.............................. 5.250 04/01/39 735,308
10,000 California Hlth Fac Fin Auth Rev Sutter Hlth
Ser A (d)..................................... 5.000 11/15/42 10,341,050
5,000 California Hsg Fin Agy Rev Home Mtg Ser I
(AMT) (d)..................................... 4.800 08/01/36 5,016,587
7,000 California Hsg Fin Agy Rev Home Mtg Ser I
(AMT) (d)..................................... 4.875 08/01/41 7,023,223
4,000 California Hsg Fin Agy Rev Home Mtg Ser M
(AMT) (d)..................................... 4.625 08/01/26 3,992,330
7,440 California Hsg Fin Agy Rev Home Mtg Ser M
(AMT) (d)..................................... 4.650 08/01/31 7,402,056
5,150 California Hsg Fin Agy Rev Home Mtg Ser M
(AMT) (d)..................................... 4.700 08/01/36 5,140,125
8,390 California Hsg Fin Agy Rev Home Mtg Ser M
(AMT) (d)..................................... 4.750 08/01/42 8,373,912
3,000 California Hsg Fin Agy Rev Multi-Family Hsg
III Ser A (MBIA Insd) (AMT)................... 5.850 08/01/17 3,060,540
8 See Notes to Financial Statements
VAN KAMPEN CALIFORNIA VALUE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2007 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
---------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
$ 2,000 California Infrastructure & Econ Dev Bk Rev
Bay Area Toll Brdg First Lien Ser A (FGIC
Insd) (Prerefunded @ 01/01/28)................ 5.000% 07/01/29 $ 2,241,700
1,000 California Pollutn Ctl Fin Auth Pollutn Ctl
Rev Gas & Elec Rfdg Ser A (MBIA-IBC Insd)..... 5.900 06/01/14 1,132,470
1,000 California Pollutn Ctl Fin Auth Solid Waste
Disp Rev Waste Mgmt Inc Proj Ser B (AMT)...... 5.000 07/01/27 1,018,700
2,500 California Pollutn Ctl Fin Auth Solid Waste
Disp Rev Waste Mgmt Inc Proj Ser C (AMT)
(a)........................................... 5.125 11/01/23 2,600,950
45 California Rural Home Mtg Fin Auth Single
Family Mtg Rev Mtg Bkd Sec Pgm Ser B (GNMA
Collateralized) (AMT)......................... 6.150 06/01/20 45,864
65 California Rural Home Mtg Fin Auth Single
Family Mtg Rev Mtg Bkd Sec Pgm Ser B (GNMA
Collateralized) (AMT)......................... 6.250 12/01/31 66,311
15 California Rural Home Mtg Fin Auth Single
Family Mtg Rev Mtg Bkd Sec Pgm Ser C (GNMA
Collateralized) (AMT)......................... 7.500 08/01/27 15,252
10 California Rural Home Mtg Fin Auth Single
Family Mtg Rev Mtg Bkd Sec Ser A-2 (GNMA
Collateralized) (AMT)......................... 7.950 12/01/24 10,379
35 California Rural Home Mtg Fin Auth Single
Family Mtg Rev Ser C (GNMA Collateralized)
(AMT)......................................... 7.800 02/01/28 35,645
1,060 California Spl Dist Assn Fin Corp Ctf Part Spl
Dist Fin Pgm Ser KK (FSA Insd) (b)............ 5.800 11/01/29 1,118,766
2,110 California Spl Dist Fin Pgm Ser 00 (MBIA Insd)
(b)........................................... 5.250 12/01/26 2,200,097
2,000 California St (CIFG Insd)..................... 5.000 10/01/22 2,100,500
3,000 California St (FGIC Insd) (b)................. 5.000 10/01/23 3,074,700
1,000 California St (MBIA-IBC Insd) (b)............. 5.000 02/01/26 1,046,890
835 California St Dept Wtr Res Rev Ser W.......... 5.500 12/01/17 898,602
1,000 California St Pub Wks Brd Dept Corrections
Ser C......................................... 5.500 06/01/23 1,095,450
10,000 California St Rfdg (d)........................ 4.500 08/01/30 9,906,850
2,340 California St Rfdg (FGIC Insd)................ 5.000 02/01/23 2,382,026
10,000 California St Univ Rev Syswide Ser D (d)...... 4.500 11/01/37 10,052,050
960 California St Vet Ser BJ (AMT)................ 5.700 12/01/32 980,122
2,230 California Statewide Cmnty Dev Auth CHF Irvine
LLC UCI East Rfdg............................. 5.000 05/15/38 2,323,816
3,000 California Statewide Cmnty Dev Auth Rev
Daughters of Charity Hlth Ser A............... 5.250 07/01/30 3,119,940
4,355 California Statewide Cmnty Dev Auth Rev
Daughters of Charity Hlth Ser A............... 5.250 07/01/35 4,509,690
3,000 California Statewide Cmnty Dev Auth Rev Hlth
Fac Adventist Hlth Ser A...................... 5.000 03/01/35 3,068,100
2,800 California Statewide Cmnty Dev Auth Rev Kaiser
Permanente Ser B.............................. 5.000 03/01/41 2,871,204
See Notes to Financial Statements 9
VAN KAMPEN CALIFORNIA VALUE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2007 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
---------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
$ 4,200 California Statewide Cmnty Dev Auth Rev Kaiser
Permanente Ser B.............................. 5.250% 03/01/45 $ 4,410,126
3,500 California Statewide Cmnty Dev Auth Rev Kaiser
Permanente Ser C.............................. 5.250 08/01/31 3,708,880
1,280 California Statewide Cmnty Dev Auth Wtr Rev
Pooled Fin Pgm Ser C (FSA Insd)............... 5.250 10/01/28 1,364,902
1,325 California Statewide Cmnty Dev Auth Wtr &
Wastewtr Rev Pooled Fin Pgm Ser B (FSA
Insd)......................................... 5.250 10/01/23 1,421,009
1,595 Cardiff, CA Sch Dist Cap Apprec (FGIC Insd)
(b)........................................... * 08/01/24 758,486
1,675 Cardiff, CA Sch Dist Cap Apprec (FGIC Insd)
(b)........................................... * 08/01/25 758,875
2,000 Carson, CA Redev Agy Tax Alloc Rfdg Ser A
(MBIA Insd)................................... 5.000 10/01/23 2,117,760
1,095 Cathedral City, CA Impt Bd Act 1915 Ltd Oblig
Cove Impt Dist 04-02 (b)...................... 5.000 09/02/22 1,117,349
850 Cathedral City, CA Ltd Oblig Cove Impt Dist
04-02......................................... 5.000 09/02/23 863,438
1,085 Cathedral City, CA Pub Fin Auth Rev Cap Apprec
Ser A (MBIA Insd) (b)......................... * 08/01/27 449,385
1,085 Cathedral City, CA Pub Fin Auth Rev Cap Apprec
Ser A (MBIA Insd) (b)......................... * 08/01/28 428,456
1,085 Cathedral City, CA Pub Fin Auth Rev Cap Apprec
Ser A (MBIA Insd) (b)......................... * 08/01/30 389,916
1,085 Cathedral City, CA Pub Fin Auth Rev Cap Apprec
Ser A (MBIA Insd) (b)......................... * 08/01/31 372,242
1,085 Cathedral City, CA Pub Fin Auth Rev Cap Apprec
Ser A (MBIA Insd) (b)......................... * 08/01/32 355,305
1,085 Cathedral City, CA Pub Fin Auth Rev Cap Apprec
Ser A (MBIA Insd) (b)......................... * 08/01/33 339,941
400 Cathedral City, CA Pub Fin Auth Rev Sub-tax
Alloc Redev Proj Ser C........................ 4.500 08/01/35 380,036
2,000 Central Vly Fin Auth CA Cogeneration Proj Rev
Carson Ice Gen Proj Rfdg (MBIA Insd).......... 5.000 07/01/17 2,051,560
220 Cerritos, CA Cmnty College Dist Election 2004
Ser A (MBIA Insd) (b)......................... 5.000 08/01/27 232,230
2,500 Chaffey, CA Uni High Sch Dist Ser C (FSA
Insd)......................................... 5.000 05/01/27 2,613,250
1,805 Channel Island Beach, CA Cmnty Svc Dist Swr
Rev Ctf Partn Ser A (Radian Insd) (b)......... 5.250 11/01/35 1,921,404
1,700 Chino Vly Uni Sch Dist CA Ctf Partn Rfdg Ser A
(FSA Insd).................................... 5.375 09/01/20 1,822,213
2,000 Chula Vista, CA Cmnty Fac Dist Spl Tax No 01-1
Impt Area San Miguel Ser B.................... 5.350 09/01/26 2,061,600
2,000 Chula Vista, CA Indl Dev Rev San Diego Gas Ser
A............................................. 5.300 07/01/21 2,164,940
1,540 Chula Vista, CA Redev Agy Tax Alloc Sub
Bayfront Rfdg Ser B........................... 5.250 10/01/27 1,567,859
1,605 Coachella, CA Fin Auth Tax Alloc Rev Redev
Proj 4 Rfdg Ser B (XLCA Insd)................. 5.250 09/01/34 1,719,549
10 See Notes to Financial Statements
VAN KAMPEN CALIFORNIA VALUE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2007 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
---------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
$ 1,000 Coachella, CA Redev Agy Tax Alloc Proj Area No
3 Rfdg........................................ 5.875% 12/01/28 $ 1,031,830
2,900 Colton, CA Jt Uni Sch Dist Ser A (FGIC
Insd)......................................... 5.500 08/01/22 3,174,340
2,000 Colton, CA Redev Agy Tax Alloc Mt Vernon
Corridor Redev Proj........................... 6.300 09/01/36 2,104,600
1,600 Commerce, CA Jt Pwr Fin Auth Lease Rev Cmnty
Ctr Proj (XLCA Insd).......................... 5.000 10/01/29 1,676,144
2,000 Commerce, CA Jt Pwr Fin Auth Lease Rev Cmnty
Ctr Proj (XLCA Insd).......................... 5.000 10/01/34 2,090,380
1,965 Contra Costa Cnty, CA Ctf Partn Merrithew Mem
Hosp Proj Rfdg (MBIA Insd).................... 5.500 11/01/22 2,019,450
1,250 Corona Norco, CA Uni Sch Dist Cap Apprec Ser B
(FSA Insd) (e)................................ * 09/01/16 859,138
1,595 Corona Norco, CA Uni Sch Dist Cap Apprec Ser B
(FSA Insd).................................... * 09/01/17 1,047,771
1,735 Corona Norco, CA Uni Sch Dist Cap Apprec Ser B
(FSA Insd) (b)................................ * 09/01/18 1,087,064
1,750 Crescenta Vly, CA Wtr Dist Rev Ctf Partn Wtr
Sys Impt Proj (FSA Insd)...................... 4.375 06/01/37 1,698,620
615 Davis, CA Pub Fac Fin Auth Loc Agy Rev Mace
Ranch Area Ser A.............................. 6.500 09/01/15 632,521
1,245 Duarte, CA Multi-Family Rev Hsg Heritage Pk
Apt Ser A (FNMA Collateralized) (AMT)......... 5.850 05/01/30 1,276,274
845 Duarte, CA Redev Agy Tax Alloc Davis Addition
Proj Area Rfdg................................ 6.700 09/01/14 867,942
2,000 East Bay, CA Muni Util Dist Wtr Sys Rev (MBIA
Insd)......................................... 5.000 06/01/21 2,097,320
4,445 East Bay, CA Muni Util Dist Wtr Sys Rev Sub... 5.250 06/01/19 4,559,992
1,185 El Cajon, CA Redev Agy Tax Alloc El Cajon
Redev Proj (AMBAC Insd)....................... 4.250 10/01/30 1,139,354
1,280 El Cerrito, CA Redev Agy Tax Alloc Redev Proj
Area Rfdg Ser B (MBIA Insd) (AMT) (b)......... 5.250 07/01/15 1,345,920
1,220 Emeryville, CA Pub Fin Auth Rev Assmt Dist
Refin......................................... 5.900 09/02/21 1,245,352
1,000 Emeryville, CA Pub Fin Auth Rev Shellmound Pk
Redev & Hsg Proj Ser B (MBIA Insd)............ 5.000 09/01/19 1,026,600
5,155 Florin, CA Res Consv Dist Cap Impt Elk Grove
Wtr Svc Ser A (MBIA Insd)..................... 5.000 09/01/33 5,418,884
3,000 Folsom, CA Spl Tax Cmnty Fac Dist No 2 Rfdg
(Connie Lee Insd)............................. 5.250 12/01/19 3,085,770
1,010 Folsom Cordova, CA Uni Sch Dist Fac Impt Dist
No 1 Cap Apprec Ser A (AMBAC Insd) (b)........ * 10/01/19 601,273
1,060 Folsom Cordova, CA Uni Sch Dist Fac Impt Dist
No 1 Cap Apprec Ser A (AMBAC Insd) (b)........ * 10/01/21 573,958
1,000 Fontana, CA Redev Agy Tax Alloc Southwest Indl
Park Proj (MBIA Insd)......................... 5.000 09/01/22 1,023,390
See Notes to Financial Statements 11
VAN KAMPEN CALIFORNIA VALUE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2007 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
---------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
$ 1,950 Fontana, CA Redev Agy Tax Alloc Southwest Indl
Park Proj (MBIA Insd)......................... 5.200% 09/01/30 $ 1,996,586
5,000 Fontana, CA Uni Sch Dist Ctf Partn Fin Proj
(FSA Insd) (g)................................ 4.500 09/01/35 4,979,850
2,950 Foothill/Eastern Corridor Agy CA Toll Rd Rev
(f)........................................... * 01/01/27 1,248,440
10,000 Foothill/Eastern Corridor Agy CA Toll Rd Rev
Cap Apprec Rfdg............................... * 01/15/25 3,682,000
15,000 Foothill/Eastern Corridor Agy CA Toll Rd Rev
Cap Apprec Rfdg............................... * 01/15/26 5,202,150
11,000 Foothill/Eastern Corridor Agy CA Toll Rd Rev
Cap Apprec Rfdg............................... * 01/15/30 2,988,480
5,000 Foothill/Eastern Corridor Agy CA Toll Rd Rev
Cap Apprec Rfdg............................... * 01/15/31 1,277,200
5,500 Foothill/Eastern Corridor Agy CA Toll Rd Rev
Conv Cap Apprec Rfdg (c)...................... 0/5.875 01/15/27 5,152,620
1,000 Foothill/Eastern Corridor Agy CA Toll Rd Rev
Rfdg.......................................... 5.750 01/15/40 1,046,450
1,000 Galt Schs Jt Pwrs Auth CA Rev High Sch & Elem
Sch Rfdg Ser A (MBIA Insd).................... 5.750 11/01/16 1,030,300
1,115 Garden Grove, CA Pub Fin Auth Rev Ctf Partn
Wtr Svc Cap Impt Pgm (FSA Insd)............... 5.000 12/15/23 1,178,968
2,500 Glendale, CA Uni Sch Dist Ser C (FSA Insd).... 5.500 09/01/19 2,626,950
1,680 Glendale, CA Uni Sch Dist Ser D (MBIA Insd)
(b)........................................... 5.250 09/01/17 1,787,016
5,000 Golden St Tob Sec Corp CA Tob Settlement Rev
Ser A-1 (d)................................... 5.125 06/01/47 5,248,400
5,000 Golden St Tob Sec Corp CA Tob Settlement Rev
Ser A-1 (d)................................... 5.750 06/01/47 5,248,400
5,000 Hawthorne, CA Spl Tax Cmnty Fac Dist No 2006-1
(d)........................................... 5.000 09/01/36 5,077,725
2,000 Hesperia, CA Uni Sch Dist Ctf Partn Cap Impt
Proj (AMBAC Insd)............................. 4.500 02/01/35 1,982,640
5,000 Hollister, CA Jt Pwr Fin Auth Wastewtr Rev &
Impt Proj Ser 1 (FSA Insd) (d)................ 4.500 06/01/37 4,979,425
1,000 Huntington Pk, CA Pub Fin Auth Lease Rev
Wastewtr Sys Proj Ser A....................... 6.200 10/01/25 1,025,300
3,000 Imperial Irr Dist CA Ctf Partn Elec Sys Proj
(FSA Insd).................................... 5.250 11/01/23 3,204,900
1,000 Independent Cities CA Lease Fin Auth Mobile
Home Pk Rev Westlake Mobile Home Pk Rfdg Ser
A............................................. 4.500 10/15/32 964,710
250 Independent Cities, CA Lease Fin Auth Mobile
Home Pk Rev Westlake Mobile Home Pk Rfdg Ser
A............................................. 4.500 10/15/37 238,440
3,435 Irvine, CA Pub Fac & Infrastructure Auth Assmt
Rev Ser B (AMBAC Insd) (b).................... 5.000 09/02/22 3,549,351
12 See Notes to Financial Statements
VAN KAMPEN CALIFORNIA VALUE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2007 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
---------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
$ 2,000 Irvine, CA Uni Sch Dist Fin Auth Spl Tax Group
II Ser A...................................... 5.125% 09/01/36 $ 2,038,520
1,660 Jurupa, CA Cmnty Svc Dist Spl Tax Cmnty Fac
Dist No 21 Ser A.............................. 5.000 09/01/26 1,685,265
1,000 Kern, CA Cmnty College Sch Fac Impt Dist
Mammoth Campus/Kern Cmnty Ser A (AMBAC Insd)
(b)........................................... * 08/01/22 521,830
800 Kern, CA Cmnty College Sch Fac Impt Dist
Mammoth Campus/Kern Cmnty Ser A (AMBAC Insd)
(b)........................................... 5.000 08/01/19 839,032
1,000 La Quinta, CA Fin Auth Loc Ser A (AMBAC
Insd)......................................... 5.250 09/01/24 1,081,120
1,420 La Quinta, CA Redev Agy Tax Alloc Redev Proj
Area No 1 (AMBAC Insd)........................ 5.000 09/01/22 1,503,042
1,500 La Quinta, CA Redev Agy Tax Redev Proj Area No
1 (AMBAC Insd)................................ 5.125 09/01/32 1,588,200
1,000 Laguna Hills, CA Ctf Partn Cmnty Ctr Proj
(MBIA Insd)................................... 5.000 12/01/18 1,049,560
1,185 Lake Elsinore, CA Uni Sch Dist Cmnty Fac Dist
Spl Tax No 2005-01 Impt Area Ser A............ 5.300 09/01/26 1,209,944
1,245 Lake Elsinore, CA Uni Sch Dist Cmnty Fac Dist
Spl Tax No 2005-01 Impt Area Ser A............ 5.400 09/01/35 1,271,531
1,000 Lammersville, CA Sch Dist Cmnty Fac Dist Spl
Tax No 2002-Mountain House.................... 5.125 09/01/35 1,026,810
1,105 Larkspur, CA Sch Dist Cap Apprec Ser A (FGIC
Insd) (b)..................................... * 08/01/20 632,049
1,145 Larkspur, CA Sch Dist Cap Apprec Ser A (FGIC
Insd) (b)..................................... * 08/01/21 624,391
1,000 Lathrop, CA Impt Bd Act 1915 Mossdale Vlg
Assmt Dist 03-1............................... 5.000 09/02/25 1,005,720
5,000 Loma Linda, CA Hosp Rev Loma Linda Univ Med
Ctr Ser A..................................... 5.000 12/01/22 5,127,850
1,000 Loma Linda, CA Redev Agy Tax Loma Linda Redev
Proj Rfdg (MBIA Insd)......................... 5.125 07/01/30 1,061,700
145 Long Beach, CA Bd Fin Auth Tax Alloc Rev North
Long Beach Redev Proj Ser A (AMBAC Insd)...... 5.375 08/01/21 156,670
3,555 Long Beach, CA Hbr Rev Ser A (FGIC Insd)
(AMT)......................................... 5.250 05/15/18 3,695,423
2,000 Los Angeles, CA Cmnty Redev Agy Cmnty Redev
Fin Auth Rev Bunker Hill Proj Ser A (FSA
Insd)......................................... 5.000 12/01/27 2,106,280
1,900 Los Angeles, CA Ctf Partn..................... 5.700 02/01/18 1,957,665
1,000 Los Angeles, CA Ctf Partn Dept Pub Social Svc
Ser A (AMBAC Insd)............................ 5.500 08/01/31 1,043,510
3,000 Los Angeles, CA Ctf Partn Sr Sonnenblick Del
Rio W L A (AMBAC Insd)........................ 6.000 11/01/19 3,254,730
2,000 Los Angeles, CA Dept Wtr & Pwr Sys Ser C (MBIA
Insd)......................................... 5.000 07/01/26 2,130,020
85 Los Angeles, CA Single Family Home Mtg Rev Pgm
Ser A (GNMA Collateralized) (AMT)............. 6.875 06/01/25 87,073
See Notes to Financial Statements 13
VAN KAMPEN CALIFORNIA VALUE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2007 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
---------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
$ 1,000 Los Angeles, CA Wtr & Pwr Rev Sys Ser A (MBIA
Insd)......................................... 5.375% 07/01/18 $ 1,064,310
2,000 Los Angeles Cnty, CA Met Tran Auth Sales Tax
Rev Prop A First Tier Sr Rfdg Ser C (AMBAC
Insd)......................................... 5.000 07/01/23 2,064,040
1,200 Los Angeles Cnty, CA Sch Regionalized Business
Svc Ctf Partn Cap Apprec Pooled Fin Ser A
(AMBAC Insd).................................. * 08/01/26 509,244
1,250 Los Angeles Cnty, CA Sch Regionalized Business
Svc Ctf Partn Cap Apprec Pooled Fin Ser A (FSA
Insd)......................................... 5.000 09/01/28 1,308,238
2,755 Los Angeles Cnty, CA Sch Ser B (MBIA Insd).... 5.000 11/01/24 2,907,379
2,840 Los Banos, CA Redev Agy Tax Alloc Los Banos
Redev Proj (Radian Insd)...................... 4.500 09/01/36 2,765,365
1,190 Lynwood, CA Util Auth Enterp Rev (FSA Insd)
(b)........................................... 5.000 06/01/25 1,251,713
3,650 Manhattan Beach, CA Uni Sch Dist Cap Apprec
Ser B (FGIC Insd)............................. * 09/01/22 1,897,927
2,000 Mendocino Cnty, CA Ctf Partn Cnty Pub Fac Corp
(MBIA Insd)................................... 5.250 06/01/30 2,109,620
3,400 Metropolitan Wtr Dist Southn CA Auth Ser B-2
(FGIC Insd)................................... 5.000 10/01/26 3,563,234
1,385 Metropolitan Wtr Dist Southn CA Wtrwks Rev
Rfdg Ser B.................................... 4.375 07/01/37 1,364,377
1,710 Modesto, CA Irr Dist Ctf Partn Cap Impts Ser A
(FSA Insd).................................... 5.250 07/01/17 1,817,337
2,000 Montclair, CA Redev Agy Mobile Home Pk Rev
Hacienda Mobile Home Pk Proj.................. 6.000 11/15/22 2,127,560
1,110 Mountain View Los Altos, CA Uni High Sch Dist
Cap Apprec Ser D (FSA Insd) (b)............... * 08/01/24 528,127
3,180 Mount Diablo, CA Uni Sch Dist (FSA Insd)...... 5.000 08/01/26 3,315,341
1,000 National City, CA Cmnty Dev Commn Tax Alloc
Redev Proj Rfdg Ser B (AMBAC Insd)............ 5.250 08/01/32 1,073,520
1,730 National City, CA Cmnty Dev Commn Tax Alloc
National City Redev Proj Ser A (AMBAC Insd)
(b)........................................... 5.500 08/01/32 1,887,188
1,670 National City, CA Cmnty Dev Commn Tax Alloc
Redev Proj Rfdg Ser B (AMBAC Insd) (b)........ 5.000 08/01/25 1,763,737
2,000 Needles, CA Pub Util Auth Util Sys Acquisition
Proj Ser A.................................... 6.500 02/01/22 2,042,940
1,500 Norco, CA Spl Tax Cmnty Fac Dist No 97-1 Rfdg
(Asset Gty Insd).............................. 4.875 10/01/30 1,543,770
1,225 Novato, CA Uni Sch Dist (FSA Insd)............ 5.000 08/01/28 1,292,314
985 Oceanside, CA Cmnty Fac No 2001-1 Morro Hills
Dev........................................... 5.500 09/01/34 1,023,750
3,000 Oxnard, CA Harbor Dist Rev Ser B.............. 6.000 08/01/24 3,272,490
2,500 Oxnard, CA Spl Tax Cmnty Fac Dist No 3
Seabridge..................................... 5.000 09/01/35 2,512,800
1,000 Oxnard, CA Uni High Sch Dist Rfdg Ser A (MBIA
Insd)......................................... 6.200 08/01/30 1,170,260
14 See Notes to Financial Statements
VAN KAMPEN CALIFORNIA VALUE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2007 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
---------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
$ 1,965 Pacifica, CA Wastewtr Rev Rfdg (AMBAC Insd)
(b)........................................... 5.250% 10/01/22 $ 2,121,925
1,230 Palm Desert, CA Fin Auth Tax Alloc Rev Proj
Area No 2 Rfdg Ser A (MBIA Insd) (b).......... 5.000 08/01/21 1,314,317
250 Palm Springs, CA Arpt Sub Palm Springs Intl
Arpt Rfdg (AMT)............................... 5.450 07/01/20 257,898
530 Palm Springs, CA Arpt Sub Palm Springs Intl
Arpt Rfdg (AMT)............................... 5.550 07/01/28 543,780
255 Pasadena, CA Spl Tax Cmnty Fac Dist No 1 Civic
Ctr West (f).................................. * 12/01/07 249,497
4,350 Perris, CA Pub Fin Auth Rev Tax Alloc......... 5.350 10/01/36 4,479,891
1,040 Perris, CA Pub Fin Auth Rev Tax Alloc Ser A
(MBIA Insd) (b)............................... 5.000 10/01/24 1,101,100
1,000 Perris, CA Pub Fin Auth Rev Tax Alloc Ser A
(MBIA Insd)................................... 5.000 10/01/31 1,050,840
1,000 Pico Rivera, CA Wtr Auth Rev Wtr Sys Proj Ser
A (MBIA Insd)................................. 5.500 05/01/19 1,132,380
1,375 Pittsburg, CA Redev Agy Tax Alloc Los Medanos
Cmnty Dev Proj (AMBAC Insd)................... * 08/01/26 593,711
3,350 Port Oakland, CA Port Rev Ser G (MBIA Insd)
(AMT)......................................... 5.375 11/01/25 3,437,100
2,500 Port Oakland, CA Rfdg Ser N (MBIA Insd)
(AMT)......................................... 5.000 11/01/22 2,591,150
1,000 Poway, CA Redev Agy Tax Alloc Paguay Redev
Proj Ser A (MBIA Insd)........................ 5.000 06/15/33 1,040,300
2,500 Poway, CA Uni Sch Dist Spl Tax Cmnty Fac Dist
6-4 S Ranch................................... 5.125 09/01/35 2,543,950
2,000 Rancho Cordova Cmnty Fac Dist CA Spl Tax No
2003-1 Sunridge Anatolia...................... 6.000 09/01/24 2,049,180
1,000 Rancho Cucamonga, CA Redev Agy Tax Alloc
Rancho Redev Proj (FSA Insd).................. 5.250 09/01/20 1,042,030
1,220 Rancho Mirage, CA Redev Agy Tax Alloc Redev
Plan 1984 Proj Ser A-1 (MBIA Insd)............ 5.000 04/01/26 1,267,873
2,540 Rancho Mirage, CA Redev Agy Tax Alloc Redev
Plan 1984 Proj Ser A-E (MBIA Insd)............ 5.250 04/01/33 2,666,822
3,800 Redlands, CA Redev Agy Tax Alloc Redev Proj
Rfdg Ser A (MBIA Insd)........................ 4.750 08/01/21 3,870,224
1,000 Redondo Beach, CA Pub Fin Auth Rev South Bay
Ctr Redev Proj................................ 7.000 07/01/16 1,021,870
4,000 Redwood City, CA Sch Dist (FGIC Insd)......... 5.000 07/15/23 4,193,840
3,000 Redwood City, CA Sch Dist (FGIC Insd)......... 5.000 07/15/27 3,126,720
1,740 Riverside Cnty, CA Ctf Partn Historic Ct Hse
Rfdg Ser B (FGIC Insd) (b).................... 5.000 11/01/25 1,843,130
2,000 RNR Sch Fin Auth CA Spl Tax Cmnty Fac Dist No
92 1 Ser A (AMBAC Insd)....................... 5.000 09/01/36 2,113,700
9,640 Rohnert Pk, CA Cmnty Dev Commn Tax Alloc Rev
Hsg Redev Proj Ser H (d)...................... 4.375 08/01/37 9,343,425
See Notes to Financial Statements 15
VAN KAMPEN CALIFORNIA VALUE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2007 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
---------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
$ 1,650 Roseville, CA Jt Uni High Sch Dist Ser B (FGIC
Insd)......................................... * 06/01/20 $ 906,461
265 Sacramento, CA City Fin Auth Rev Cap Impt
(AMBAC Insd).................................. 5.000% 12/01/33 277,002
1,000 Sacramento, CA City Fin Auth Rev Tax Alloc Ser
A (FGIC Insd)................................. 5.000 12/01/34 1,053,150
1,000 Salinas Vly, CA Solid Waste Auth Rev (AMBAC
Insd) (AMT)................................... 5.250 08/01/27 1,048,970
2,000 Salinas Vly, CA Solid Waste Auth Rev (AMBAC
Insd) (AMT)................................... 5.250 08/01/31 2,096,020
2,000 San Bernardino, CA Jt Pwr Fin Auth Ctf Partn
(MBIA Insd)................................... 5.500 09/01/20 2,118,100
955 San Diego, CA Hsg Auth Multi-Family Hsg Rev
Mtg Bkd Sec Pgm Ser C (GNMA Collateralized)
(AMT)......................................... 5.000 07/20/18 978,006
1,000 San Diego, CA Pub Fac Fin Auth Swr Rev (FGIC
Insd)......................................... 5.000 05/15/20 1,001,050
2,500 San Diego, CA Redev Agy Centre City Redev Proj
Ser A......................................... 6.400 09/01/25 2,611,100
1,000 San Dimas, CA Redev Agy Tax Alloc Creative
Growth Ser A (FSA Insd)....................... 5.000 09/01/16 1,037,520
1,660 San Francisco, CA City & Cnty Arpt Commn Intl
Arpt Rev Spl Fac Lease Ser A (FSA Insd)
(AMT)......................................... 6.125 01/01/27 1,717,038
2,000 San Francisco, CA City & Cnty Arpt Commn Intl
Arpt Second Rfdg Ser 27A (MBIA Insd) (AMT).... 5.250 05/01/26 2,070,680
3,000 San Francisco, CA City & Cnty Arpt Commn Intl
Arpt Second Rfdg Ser 27A (MBIA Insd) (AMT).... 5.250 05/01/31 3,108,240
5,000 San Jose, CA Fin Auth Lease Rev Convention Ctr
Proj Rfdg Ser F (MBIA Insd)................... 5.000 09/01/17 5,242,200
2,500 San Jose, CA Redev Agy Tax Alloc Merged Area
Redev Proj Rfdg Ser C (MBIA Insd)............. 4.250 08/01/30 2,405,075
1,600 San Leandro, CA Ctf Partn Lib & Fire Stations
Fin (AMBAC Insd).............................. 5.700 11/01/20 1,706,416
2,000 San Leandro, CA Ctf Partn Lib & Fire Stations
Fin (AMBAC Insd))............................. 5.750 11/01/29 2,126,700
5,000 San Marcos, CA Pub Fac Auth Rev Tax Increment
Pass Thru Rfdg Ser A (AMBAC Insd) (d)......... 5.000 10/01/31 5,310,350
2,000 Sanger, CA Uni Sch Dist Rfdg (MBIA Insd)...... 5.600 08/01/23 2,284,960
1,350 Santa Ana, CA Uni Sch Dist (MBIA Insd) (b).... 5.375 08/01/21 1,452,182
4,820 Santa Ana, CA Uni Sch Dist (MBIA Insd)........ 5.375 08/01/27 5,138,698
1,000 Santa Ana, CA Uni Sch Dist Ctf Partn Cap
Apprec Fin Proj (FSA Insd).................... * 04/01/36 254,310
700 Santa Ana, CA Uni Sch Dist Spl Tax Cmnty Fac
Dist No 2004-1................................ 5.050 09/01/30 709,219
4,200 Semitropic Impt Dist Semitropic Wtr Storage
Dist CA Wtr Ser A (XLCA Insd)................. 5.125 12/01/35 4,445,784
16 See Notes to Financial Statements
VAN KAMPEN CALIFORNIA VALUE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2007 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
---------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
$ 3,305 South Orange Cnty, CA Pub Fin Auth Reassmt Rev
(FSA Insd).................................... 5.800% 09/02/18 $ 3,495,004
1,640 South Tahoe, CA Jt Pwr Fin Auth Rev Tahoe
Redev Proj Area 1-A Rfdg (FSA Insd)........... 5.000 10/01/29 1,722,312
2,250 South Tahoe, CA Jt Pwr Fin Redev Proj Area No
1 Ser A (AMBAC Insd).......................... 5.000 10/01/28 2,382,188
5,000 Southern CA Pub Pwr Auth Pwr Proj Rev
Multi-Projs................................... 6.750 07/01/12 5,677,250
885 Stanton, CA Multi-Family Rev Hsg Contl Garden
Apts (FNMA Collateralized) (AMT).............. 5.625 08/01/29 905,258
2,745 State Center, CA Cmnty Election 2002 Ser A
(MBIA Insd)................................... 5.500 08/01/28 3,015,410
1,000 Stockton, CA Uni Sch Dist Ctf Partn Cap Proj
(AMBAC Insd).................................. 4.375 02/01/31 975,400
1,000 Stockton, CA Uni Sch Dist Ctf Partn Cap Proj
(AMBAC Insd).................................. 4.500 02/01/36 994,340
1,300 Taft, CA City Elem Sch Dist Ser A (MBIA Insd)
(b)........................................... * 08/01/22 678,379
1,605 Tehachapi, CA Redev Agy Tax Alloc Tehachapi
Redev Proj (Radian Insd)...................... 5.250 12/01/35 1,717,992
3,000 Temecula, CA Redev Agy Tax Alloc Rev Redev
Proj No 1 Ser A (MBIA Insd)................... 4.500 08/01/38 2,977,410
10,000 Tobacco Sec Auth Northn CA Tob Settlement Rev
Asset Bkd Bd Ser A-1.......................... 5.375 06/01/38 10,273,900
10,800 Tobacco Sec Auth Northn CA Tob Settlement Rev
Asset Bkd Bd Ser A-1.......................... 5.500 06/01/45 11,141,280
4,000 Tobacco Sec Auth Southn CA Tob Settlement Sr
Ser A-1....................................... 5.000 06/01/37 3,972,120
5,000 Tobacco Sec Auth Southn CA Tob Settlement Sr
Ser A-1 (d)................................... 5.125 06/01/46 5,005,650
8,000 Tobacco Sec Auth Southn CA Tob Settlement Sr
Ser A-1....................................... 5.125 06/01/46 8,009,040
10,000 University of CA Regts Ser A (MBIA Insd)
(d)........................................... 4.500 05/15/47 9,821,250
10,000 University of CA Rev Hosp UCLA Med Ctr Ser A
(AMBAC Insd).................................. 5.250 05/15/30 10,607,300
2,200 Ventura Cnty, CA Cmnty College Ser A (MBIA
Insd)......................................... 5.500 08/01/23 2,391,202
1,000 Vista, CA Mobile Home Pk Rev
Estrella De Oro Mobile Home Ser A (Prerefunded
@ 02/01/25)................................... 5.875 02/01/28 1,035,920
1,000 Vista, CA Uni Sch Dist Ser A (FSA Insd)....... 5.000 08/01/23 1,048,830
2,000 Woodland, CA Fin Auth Lease Rev Cap Proj Rfdg
(XLCA Insd)................................... 5.000 03/01/25 2,106,460
-------------
622,589,562
-------------
See Notes to Financial Statements 17
VAN KAMPEN CALIFORNIA VALUE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2007 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
---------------------------------------------------------------------------------------------
PUERTO RICO 4.5%
$ 5,000 Puerto Rico Comwlth Hwy & Tran Auth Hwy Rev
Rfdg Ser Y (FSA Insd)......................... 6.250% 07/01/21 $ 6,186,000
4,000 Puerto Rico Elec Pwr Auth Pwr Rev Ser II (XLCA
Insd) (Prerefunded @ 07/01/12)................ 5.375 07/01/17 4,364,240
3,170 University of PR Univ Rev Sys Rfdg Ser P
(d)........................................... 5.000 06/01/30 3,317,532
2,490 University of PR Univ Rev Sys Ser Q (d)....... 5.000 06/01/36 2,605,884
-------------
16,473,656
-------------
U.S. VIRGIN ISLANDS 1.8%
1,000 Virgin Islands Pub Fin Auth Rev Gross Rcpt
Taxes Ln Nt Ser A (ACA Insd) (Prerefunded @
10/01/10)..................................... 6.125 10/01/29 1,085,840
3,000 Virgin Islands Pub Fin Auth Rev Gross Rcpt
Taxes Ln Nt Ser A............................. 6.375 10/01/19 3,260,220
2,000 Virgin Islands Pub Fin Auth Rev Gross Rcpt
Taxes Ln Nt Ser A (Prerefunded @ 10/01/10).... 6.500 10/01/24 2,192,840
-------------
6,538,900
-------------
TOTAL LONG-TERM INVESTMENTS 178.7%
(Cost $617,504,967)........................................................ 645,602,118
TOTAL SHORT-TERM INVESTMENTS 4.0%
(Cost $14,400,000)......................................................... 14,400,000
-------------
TOTAL INVESTMENTS 182.7%
(Cost $631,904,967)........................................................ 660,002,118
LIABILITY FOR FLOATING RATE NOTE OBLIGATIONS RELATED TO SECURITIES HELD (27.5%)
(Cost ($99,380,000))
(99,380) Notes with interest ranging from 3.940% to 4.020% at April 30,
2007 and contractual maturities of collateral ranging from 2026
to 2047 (See Note 1) (h)......................................... (99,380,000)
-------------
TOTAL NET INVESTMENTS 155.2%
(Cost $532,524,967)........................................................ 560,622,118
OTHER ASSETS IN EXCESS OF LIABILITIES 0.2%.................................. 837,918
PREFERRED SHARES (INCLUDING ACCRUED DISTRIBUTIONS) (55.4%).................. (200,284,953)
-------------
NET ASSETS APPLICABLE TO COMMON SHARES 100.0%............................... $ 361,175,083
=============
Percentages are calculated as a percentage of net assets applicable to common
shares.
* Zero coupon bond
(a) Variable Rate Coupon
(b) The Trust owns 100% of the outstanding bond issuance.
(c) Security is a "step-up" bond where the coupon increases or steps up at a
predetermined date.
18 See Notes to Financial Statements
VAN KAMPEN CALIFORNIA VALUE MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2007 (UNAUDITED) continued
(d) Underlying security related to Inverse Floaters entered into by the Trust.
See Note 1.
(e) All or a portion of this security has been physically segregated in
connection with open futures contracts.
(f) Escrowed to Maturity
(g) Security purchased on a when-issued or delayed delivery basis.
(h) Floating rate notes. The interest rates shown reflect the rates in effect at
April 30, 2007.
ACA--American Capital Access
AMBAC--AMBAC Indemnity Corp.
AMT--Alternative Minimum Tax
Asset Gty--Asset Guaranty Insurance Co.
CA MTG--California Mortgage Insurance
CIFG--CDC IXIS Financial Guaranty
Connie Lee--Connie Lee Insurance Co.
FGIC--Financial Guaranty Insurance Co.
FNMA--Federal National Mortgage Association
FSA--Financial Security Assurance Inc.
GNMA--Government National Mortgage Association
GTY AGMT--Guarantee Agreement
LOC--Letter of Credit
MBIA--Municipal Bond Investors Assurance Corp.
MBIA-IBC--MBIA Insured Bond Certificates
Radian--Radian Asset Assurance
XLCA--XL Capital Assurance Inc.
FUTURES CONTRACTS OUTSTANDING AS OF APRIL 30, 2007:
UNREALIZED
APPRECIATION/
CONTRACTS DEPRECIATION
SHORT CONTRACTS:
U.S. Treasury Bond Futures, June 2007 (Current Notional
Value of $111,750 per contract)........................... 612 $(71,864)
--- --------
See Notes to Financial Statements 19
VAN KAMPEN CALIFORNIA VALUE MUNICIPAL INCOME TRUST
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
April 30, 2007 (Unaudited)
ASSETS:
Total Investments (Cost $631,904,967)....................... $660,002,118
Cash........................................................ 75,885
Receivables:
Investments Sold.......................................... 13,586,332
Interest.................................................. 7,374,441
Other....................................................... 6,845
------------
Total Assets............................................ 681,045,621
------------
LIABILITIES:
Floating Rate Note Obligations.............................. 99,380,000
Payables:
Investments Purchased..................................... 18,068,678
Variation Margin on Futures............................... 516,375
Investment Advisory Fee................................... 207,055
Other Affiliates.......................................... 24,644
Trustees' Deferred Compensation and Retirement Plans........ 1,276,214
Accrued Expenses............................................ 112,619
------------
Total Liabilities....................................... 119,585,585
Preferred Shares (including accrued distributions).......... 200,284,953
------------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $361,175,083
============
NET ASSET VALUE PER COMMON SHARE ($361,175,083 divided by
21,913,735 shares outstanding)............................ $ 16.48
============
NET ASSETS CONSIST OF:
Common Shares ($0.01 par value with an unlimited number of
shares authorized, 21,913,735 shares issued and
outstanding).............................................. $ 219,137
Paid in Surplus............................................. 330,074,471
Net Unrealized Appreciation................................. 28,025,287
Accumulated Net Realized Gain............................... 2,790,201
Accumulated Undistributed Net Investment Income............. 65,987
------------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $361,175,083
============
PREFERRED SHARES ($0.01 par value, authorized 100,000,000
shares, 8,000 issued with liquidation preference of
$25,000 per share)........................................ $200,000,000
============
NET ASSETS INCLUDING PREFERRED SHARES....................... $561,175,083
============
20 See Notes to Financial Statements
VAN KAMPEN CALIFORNIA VALUE MUNICIPAL INCOME TRUST
FINANCIAL STATEMENTS continued
Statement of Operations
For the Six Months Ended April 30, 2007 (Unaudited)
INVESTMENT INCOME:
Interest.................................................... $15,028,277
-----------
EXPENSES:
Investment Advisory Fee..................................... 1,537,574
Interest and Residual Trust Expenses........................ 784,979
Preferred Share Maintenance................................. 272,171
Trustees' Fees and Related Expenses......................... 90,517
Accounting and Administrative Expenses...................... 58,747
Professional Fees........................................... 51,964
Custody..................................................... 37,883
Reports to Shareholders..................................... 20,291
Transfer Agent Fees......................................... 17,151
Registration Fees........................................... 10,673
Other....................................................... 22,129
-----------
Total Expenses.......................................... 2,904,079
Investment Advisory Fee Reduction....................... 233,053
Less Credits Earned on Cash Balances.................... 44
-----------
Net Expenses............................................ 2,670,982
-----------
NET INVESTMENT INCOME....................................... $12,357,295
===========
REALIZED AND UNREALIZED GAIN/LOSS:
Realized Gain/Loss:
Investments............................................... $ 2,830,004
Futures................................................... (22,712)
Swap Contracts............................................ (87,600)
-----------
Net Realized Gain........................................... 2,719,692
-----------
Net Unrealized Appreciation/Depreciation During the Period:
Beginning of the Period................................... 34,175,726
-----------
End of the Period:
Investments............................................. 28,097,151
Futures................................................. (71,864)
-----------
28,025,287
-----------
Net Unrealized Depreciation During the Period............... (6,150,439)
-----------
NET REALIZED AND UNREALIZED LOSS............................ $(3,430,747)
===========
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS..................... $(3,420,931)
===========
NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM
OPERATIONS................................................ $ 5,505,617
===========
See Notes to Financial Statements 21
VAN KAMPEN CALIFORNIA VALUE MUNICIPAL INCOME TRUST
FINANCIAL STATEMENTS continued
Statement of Changes in Net Assets (Unaudited)
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2007 OCTOBER 31, 2006
------------------------------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income................................... $ 12,357,295 $ 23,642,012
Net Realized Gain....................................... 2,719,692 2,253,133
Net Unrealized Appreciation/Depreciation During the
Period................................................ (6,150,439) 7,439,651
Distributions to Preferred Shareholders:
Net Investment Income................................. (3,041,731) (5,571,300)
Net Realized Gain..................................... (379,200) (762,727)
------------ ------------
Change in Net Assets Applicable to Common Shares from
Operations............................................ 5,505,617 27,000,769
Distributions to Common Shareholders:
Net Investment Income................................. (8,818,774) (18,403,834)
Net Realized Gain..................................... (1,251,061) (3,667,430)
------------ ------------
NET CHANGE IN NET ASSETS APPLICABLE TO COMMON SHARES
FROM INVESTMENT ACTIVITIES............................ (4,564,218) 4,929,505
FROM CAPITAL TRANSACTIONS:
Value of Common Shares Issued Through Dividend
Reinvestment.......................................... 61,721 -0-
Proceeds from Common Shares Acquired Through Merger..... -0- 31,694,766
------------ ------------
TOTAL INCREASE/DECREASE IN NET ASSETS APPLICABLE TO
COMMON SHARES......................................... (4,502,497) 36,624,271
NET ASSETS APPLICABLE TO COMMON SHARES:
Beginning of the Period................................. 365,677,580 329,053,309
------------ ------------
End of the Period (Including accumulated undistributed
net investment income of $65,987 and $(430,803),
respectively)......................................... $361,175,083 $365,677,580
============ ============
22 See Notes to Financial Statements
VAN KAMPEN CALIFORNIA 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, -----------------------------------------------
2007 2006 2005 2004 2003 2002
------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF THE PERIOD............ $ 16.69 $ 16.47 $ 16.95 $ 16.84 $ 17.02 $ 17.02
------- ------- ------- ------- ------- -------
Net Investment Income.............................. 0.56(a) 1.09(a) 1.04 1.07 1.12 1.17
Net Realized and Unrealized Gain/Loss.............. (0.15) 0.44 (0.30) 0.54 0.03 (0.05)
Common Share Equivalent of Distributions Paid to
Preferred Shareholders:
Net Investment Income............................ (0.14) (0.26) (0.18) (0.08) (0.09) (0.13)
Net Realized Gain................................ (0.02) (0.03) (0.01) (0.03) -0- -0-
------- ------- ------- ------- ------- -------
Total from Investment Operations.................... 0.25 1.24 0.55 1.50 1.00 0.99
Distributions Paid to Common Shareholders:
Net Investment Income............................ (0.40) (0.85) (0.94) (1.03) (1.11) (0.99)
Net Realized Gain................................ (0.06) (0.17) (0.09) (0.36) (0.07) -0-
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF THE PERIOD.................. $ 16.48 $ 16.69 $ 16.47 $ 16.95 $ 16.84 $ 17.02
======= ======= ======= ======= ======= =======
Common Share Market Price at End of the Period...... $ 16.78 $ 15.86 $ 14.81 $ 15.50 $ 16.67 $ 16.16
Total Return * (b).................................. 8.85%** 14.36% 2.25% 1.32% 10.83% 7.95%
Net Assets Applicable to Common Shares at End of the
Period (In millions)............................... $ 361.2 $ 365.7 $ 329.1 $ 102.4 $ 101.6 $ 102.6
Ratio of Expenses to Average Net Assets Applicable
to Common Shares * (c)............................. 1.48% 1.23% 1.34% 1.42% 1.43% 1.49%
Ratio of Net Investment Income to Average Net Assets
Applicable to Common Shares * (c).................. 6.85% 6.66% 6.34% 6.40% 6.56% 7.00%
Portfolio Turnover.................................. 14%** 25% 30% 11% 25% 21%
* If certain expenses had not been voluntarily assumed by Van Kampen, total return would have been lower and the
ratios would have been as follows:
Ratio of Expenses to Average Net Assets Applicable
to Common Shares (c)............................ 1.61% N/A N/A N/A N/A N/A
Ratio of Net Investment Income to Average Net
Assets Applicable to Common Shares (c).......... 6.72% N/A N/A N/A N/A N/A
SUPPLEMENTAL RATIOS:
Ratio of Expenses (Excluding Interest and Residual
Trust Expenses) to Average Net Assets Applicable to
Common Shares (c).................................. 1.05% 1.21% 1.34% 1.42% 1.43% 1.49%
Ratio of Expenses (Excluding Interest and Residual
Trust Expenses) to Average Net Assets Applicable to
Preferred Shares (c)............................... .67% .78% .86% .89% .90% .93%
Ratio of Net Investment Income to Average Net Assets
Applicable to Common Shares (d).................... 5.16% 5.09% 5.22% 5.94% 6.04% 6.23%
SENIOR SECURITIES:
Total Preferred Shares Outstanding.................. 8,000 8,000 7,200 2,400 2,400 2,400
Asset Coverage Per Preferred Share (e).............. $70,183 $70,730 $70,713 $67,686 $67,320 $67,759
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.
N/A=Not Applicable
See Notes to Financial Statements 23
VAN KAMPEN CALIFORNIA VALUE MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2007 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen California Value Municipal Income Trust (the "Trust") is registered
as a 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 California income taxes, consistent with preservation of capital.
The Trust will invest in a portfolio consisting substantially of California
municipal obligations rated investment grade at the time of investment. 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 the 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 last reported 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. Interest rate swaps are valued
using market quotations obtained from brokers. 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. At April 30, 2007, the Trust had $7,737,278 of when-issued or
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.
24
VAN KAMPEN CALIFORNIA VALUE MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2007 (UNAUDITED) continued
At April 30, 2007, the cost and related gross unrealized appreciation and
depreciation are as follows:
Cost of investments for tax purposes........................ $531,861,539
============
Gross tax unrealized appreciation........................... $ 29,185,245
Gross tax unrealized depreciation........................... (424,666)
------------
Net tax unrealized appreciation on investments.............. $ 28,760,579
============
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 at least 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 a portion of futures gains, which are
included as ordinary income for tax purposes.
The tax character of distributions paid during the year ended October 31,
2006 was as follows:
Distributions paid from:
Ordinary income........................................... $ 497,981
Tax-exempt income......................................... 23,792,638
Long-term capital gain.................................... 4,038,799
-----------
$28,329,418
===========
As of October 31, 2006, the components of distributable earnings on a tax
basis was as follows:
Undistributed ordinary income............................... $ 31,628
Undistributed tax-exempt income............................. 597,415
Undistributed long-term capital gain........................ 1,627,026
Net realized gains or losses may differ for financial reporting and tax
purposes primarily as a result of gains or losses recognized on securities for
tax purposes but not for book purposes.
F. EXPENSE REDUCTION During the six months ended April 30, 2007, the Trust's
custody fee was reduced by $44 as a result of credit earned on cash balances.
G. FLOATING RATE NOTE OBLIGATIONS RELATED TO SECURITIES HELD The Trust enters
into transactions in which it transfers to dealer trusts fixed rate bonds in
exchange for cash and residual interest in the dealer trusts' assets and cash
flows, which are in the form of inverse floating rate investments. The dealer
trusts fund the purchases of the fixed rate bonds by issuing floating rate notes
to third parties and allowing the Trust to retain residual interests in the
bonds. The Trust enters into shortfall agreements with the dealer trusts, which
commit the Trust to pay the dealer trusts, in certain circumstances, the
difference between the liquidation value of the fixed rate bonds held by the
dealer trusts and the liquidation value of the floating rate notes held by third
parties, as well as any shortfalls in interest cash flows. The residual
interests held by the Trust (inverse floating rate investments) include the
right of
25
VAN KAMPEN CALIFORNIA VALUE MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2007 (UNAUDITED) continued
the Trust (1) to cause the holders of the floating rate notes to tender their
notes at par at the next interest rate reset date, and (2) to transfer the
municipal bond from the dealer trusts to the Trust, thereby collapsing the
dealer trusts. The Trust accounts for the transfer of bonds to the dealer trusts
as secured borrowings, with the securities transferred remaining in the Trust's
investments assets, and the related floating rate notes reflected as Trust
liabilities under the caption "Floating Rate Note Obligations" on the Statement
of Assets and Liabilities. The Trust records the interest income from the fixed
rate bonds under the caption "Interest" and records the expenses related to
floating rate note obligations and any administrative expenses of the dealer
trusts under the caption "Interest and Residual Trust Expenses" on the Trust's
Statement of Operations. The notes issued by the dealer trusts have interest
rates that reset weekly and the floating rate note holders have the option to
tender their notes to the dealer trusts for redemption at par at each reset
date. At April 30, 2007, Trust investments with a value of $135,024,850 are held
by the dealer trusts and serve as collateral for the $99,380,000 in floating
rate notes outstanding at that date. Contractual maturities of the floating rate
notes and interest rates in effect at April 30, 2007 are presented on the
Portfolio of Investments.
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
including preferred shares of the Trust. Effective December 1, 2006, the Adviser
has agreed to waive investment advisory fees equal to .10% of the average daily
net assets including preferred shares of the Trust. During the period ended
April 30, 2007, the Adviser waived $233,053 of its investment advisory fee. This
waiver is voluntary and can be discontinued at any time.
For the six months ended April 30, 2007, the Trust recognized expenses of
approximately $21,300 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.
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 services are allocated to each trust. For the six months ended April 30,
2007, the Trust recognized expenses of approximately $33,100 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 "Professional Fees" on the Statement of Operations. Services provided
pursuant to the Accounting Services and CCO Employment agreement are reported as
part of "Accounting and Administrative 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
26
VAN KAMPEN CALIFORNIA VALUE MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2007 (UNAUDITED) continued
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, 2007 and the year ended October 31, 2006,
transactions in common shares were as follows:
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2007 OCTOBER 31, 2006
Beginning Shares........................................ 21,909,989 19,982,083
Shares Issued Through Dividend Reinvestment............. 3,746 -0-
Shares Acquired Through Merger.......................... -0- 1,927,906
Shares Repurchased*..................................... -0- -0-
---------- ----------
Ending Shares........................................... 21,913,735 21,909,989
========== ==========
* On February 28, 2007, the Trust commenced a shares repurchase program for
purposes of enhancing stockholder value and reducing the discount at which the
Trust's shares trade from their net asset value. For the period ended April 30,
2007, the Trust repurchased none of its shares. The Trust may repurchase its
outstanding shares at such time and in such amounts as it believes such activity
will further the accomplishment of the foregoing objectives, subject to review
of the Trustees.
On December 2, 2005, the Trust acquired all of the assets and liabilities of
the Van Kampen California Municipal Trust (ticker symbol VKC) through a tax free
reorganization approved by VKC shareholders on November 22, 2005. The Trust
issued 1,927,906 common shares and 800 Auction Preferred Shares (APS) valued at
$31,694,766 and $20,000,000, respectively, in exchange for VKC's net assets. The
shares of VKC were converted into Trust shares at a ratio of 0.591825 to 1 and 1
to 1, for common shares and APS, respectively. Net unrealized appreciation of
VKC as of December 2, 2005 was $2,487,297. The Trust assumed VKC's book to tax
accretion differences, which resulted in a $79,161 increase to accumulated
undistributed net investment income and a corresponding decrease to net
unrealized appreciation. Combined net assets applicable to common shares on the
day of the reorganization were $360,253,217 and combined net assets including
preferred shares were $560,253,217, which included a deferred compensation and
retirement plan balance of $228,757 and gains or losses of $2,064 recognized for
tax purposes on open futures transactions at merger date of December 2, 2005.
4. INVESTMENT TRANSACTIONS
During the period, the cost of purchases and proceeds from sales of investments,
excluding short-term investments, were $163,186,078 and $82,709,899,
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
27
VAN KAMPEN CALIFORNIA VALUE MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2007 (UNAUDITED) continued
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. Risks may arise as a result of the potential
inability of the counterparties to meet the terms of their contracts.
Summarized below are the different types of derivative financial instruments
used by the Trust.
A. FUTURES CONTRACTS A futures contract is an agreement 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.
Transactions in futures contracts for the six months ended April 30, 2007
were as follows:
CONTRACTS
Outstanding at October 31, 2006............................. 41
Futures Opened.............................................. 1,505
Futures Closed.............................................. (934)
-----
Outstanding at April 30, 2007............................... 612
=====
B. INTEREST RATE SWAPS The Trust may enter into forward interest rate swap
transactions intended to help the Trust manage its overall interest rate
sensitivity, either shorter or longer, generally to more closely align the
Trust's interest rate sensitivity with that of the broader municipal market.
Forward interest rate swap transactions involve the Trust's agreement with a
counterparty to pay, in the future, a fixed or variable rate payment in exchange
for the counterparty paying the Trust a variable or fixed rate payment, the
accruals for which would begin at a specified date in the future (the "effective
date"). The amount of the payment obligation is based on the notional amount of
the forward swap contract and the termination date of the swap (which is akin to
a bond's maturity). The value of the Trust's swap commitment would increase or
decrease based primarily on the extent to which long-term interest rates for
bonds having a maturity of the swap's termination date increases or
28
VAN KAMPEN CALIFORNIA VALUE MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2007 (UNAUDITED) continued
decreases. The Trust may terminate a swap contract prior to the effective date,
at which point a realized gain or loss is recognized. When a forward swap is
terminated, it ordinarily does not involve the delivery of securities or other
underlying assets or principal, but rather is settled in cash on a net basis.
The Trust intends, but is not obligated, to terminate its forward swaps before
the effective date. Accordingly, the risk of loss with respect to the swap
counterparty on such transactions is limited to the credit risk associated with
a counterparty failing to honor its commitment to pay any realized gain to the
Trust upon termination. To reduce such credit risk, all counterparties are
required to pledge collateral daily (based on the daily valuation of each swap)
on behalf of the Trust with a value approximately equal to the amount of any
unrealized gain. Reciprocally, when the Trust has an unrealized loss on a swap
contract, the Trust has instructed the custodian to pledge cash or liquid
securities as collateral with a value approximately equal to the amount of the
unrealized loss. Collateral pledges are monitored and subsequently adjusted if
and when the swap valuations fluctuate. Restricted cash for segregating
purposes, if any, is shown on the Statement of Assets and Liabilities.
C. INVERSE FLOATING RATE SECURITIES The Trust may invest a portion of its assets
in inverse floating rate instruments, either through outright purchases of
inverse floating rate securities or through the transfer of bonds to a dealer
trust in exchange for cash and residual interests in the dealer trust. These
investments are typically used by the Trust in seeking to enhance the yield of
the portfolio. These instruments typically involve greater risks than a fixed
rate municipal bond. In particular, these instruments are acquired through
leverage or may have leverage embedded in them and therefore involve many of the
risks associated with leverage. Leverage is a speculative technique that may
expose the Trust to greater risk and increased costs. Leverage may cause the
Trust's net asset value to be more volatile than if it had not been leveraged
because leverage tends to magnify the effect of any increases or decreases in
the value of the Trust's portfolio securities. The use of leverage may also
cause the Trust to liquidate portfolio positions when it may not be advantageous
to do so in order to satisfy its obligations with respect to inverse floating
rate instruments.
6. PREFERRED SHARES
As of April 30, 2007, the Trust has outstanding 8,000 APS. Series A contains
2,400 shares, Series B contains 3,000 shares, Series C contains 1,800 shares and
Series D contains 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, 2007 was 3.508%. During the six months ended
April 30, 2007, the rates ranged from 2.899% to 4.750%.
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 the "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 certain asset coverage tests and the APS are subject to
mandatory redemption if the tests are not met.
29
VAN KAMPEN CALIFORNIA VALUE MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2007 (UNAUDITED) continued
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.
8. ACCOUNTING PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board (FASB) issued
Interpretation 48, Accounting for Uncertainty in Income Taxes--an interpretation
of FASB Statement 109 (FIN 48). FIN 48 clarifies the accounting for income taxes
by prescribing the minimum recognition threshold a tax position must meet before
being recognized in the financial statements. FIN 48 is effective for the fiscal
years beginning after December 15, 2006 and is to be applied to all open tax
years as of the effective date. Recent SEC guidance allows implementing FIN 48
in the trust NAV calculations as late as the trust's last NAV calculation in the
first required financial statement period. As a result, the Trust will
incorporate FIN 48 in its semi annual report on April 30, 2008. The impact to
the Trust's financial statements, if any, is currently being assessed.
In addition, in September 2006, Statement of Financial Accounting Standards
No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for
fiscal years beginning after November 15, 2007. SFAS 157 defines fair value,
establishes a framework for measuring fair value and expands disclosures about
fair value measurements. Management is currently evaluating the impact the
adoption of SFAS 157 will have on the Trust's financial statement disclosures.
30
VAN KAMPEN CALIFORNIA 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
JAMES W. GARRETT
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 43011
Providence, Rhode Island 02940-3011
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 60606-4301
* "Interested persons" of the Trust, as defined in the Investment Company Act
of 1940, as amended.
31
Van Kampen California 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 California 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.
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
(continued on back)
Van Kampen California Value Municipal Income Trust
An Important Notice Concerning Our U.S. Privacy Policy continued
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, Suite 100
P.O. Box 5555
Oakbrook Terrace, IL 60181-5555
www.vankampen.com
Copyright (C)2007 Van Kampen Funds Inc.
All rights reserved. Member NASD/SIPC.
VCVSAR 6/07
(VAN KAMPEN INVESTMENTS LOGO) IU07-01489P-Y04/07
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.
TOTAL NUMBER OF MAXIMUM NUMBER
SHARES PURCHASED AS OF SHARES THAT MAY
PART OF PUBLICLY YET BE PURCHASED
TOTAL NUMBER OF AVERAGE PRICE ANNOUNCED PLANS UNDER THE PLANS OR
PERIOD* SHARES PURCHASED PAID PER SHARE OR PROGRAMS PROGRAMS
-------- ---------------- -------------- ------------------- ------------------
November -- -- -- --
December -- -- -- --
January -- -- -- --
February -- -- -- 2,190,999
March -- -- -- 2,190,999
April -- -- -- 2,190,999
* The Share Repurchase Program commenced on 2/28/2007.
The Trust expects to continue to repurchase its outstanding shares at such time
and in such amounts as it believes will further the accomplishment of the
foregoing objectives, subject to review by the Board of Trustees.
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 California Value Municipal Income Trust
By: /s/ Ronald E. Robison
---------------------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: June 21, 2007
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 21, 2007
By: /s/ Stuart N. Schuldt
---------------------------------
Name: Stuart N. Schuldt
Title: Principal Financial Officer
Date: June 21, 2007