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 811-02090
Van Kampen Bond Fund
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(Exact name of registrant as specified in charter)
1221 Avenue of the Americas, New York, New York 10020
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(Address of principal executive offices) (Zip code)
Ronald Robison
1221 Avenue of the Americas, New York, New York 10020
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(Name and address of agent for service)
Registrant's telephone number, including area code: 212-762-4000
Date of fiscal year end: 6/30
Date of reporting period: 12/31/06
Item 1. Reports to Shareholders.
The Fund's semiannual report transmitted to shareholders pursuant to Rule 30e-1
under the Investment Company Act of 1940 is as follows:
Welcome, Shareholder
In this report, you'll learn about how your investment in Van Kampen Bond
Fund performed during the semiannual period. The portfolio management
team will provide an overview of the market conditions and discuss some
of the factors that affected investment performance during the reporting
period. In addition, this report includes the fund's financial statements
and a list of fund investments as of December 31, 2006.
MARKET FORECASTS PROVIDED IN THIS REPORT MAY NOT NECESSARILY COME TO
PASS. THERE IS NO ASSURANCE THAT THE FUND WILL ACHIEVE ITS INVESTMENT
OBJECTIVE. FUNDS ARE SUBJECT TO MARKET RISK, WHICH IS THE POSSIBILITY
THAT THE MARKET VALUES OF SECURITIES OWNED BY THE FUND WILL DECLINE AND
THAT THE VALUE OF THE FUND SHARES MAY THEREFORE BE LESS THAN WHAT YOU
PAID FOR THEM. ACCORDINGLY, YOU CAN LOSE MONEY INVESTING IN THIS FUND.
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NOT FDIC INSURED OFFER NO BANK GUARANTEE MAY LOSE VALUE
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NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY NOT A DEPOSIT
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Performance Summary as of 12/31/06
BOND FUND
SYMBOL: VBF
------------------------------------------------------------
AVERAGE ANNUAL BASED ON BASED ON
TOTAL RETURNS MARKET PRICE NAV
10-year 6.33% 6.34%
5-year 4.27 5.52
1-year 9.40 4.93
6-month 10.31 5.63
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PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NO GUARANTEE OF
FUTURE RESULTS, AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE FIGURES
SHOWN. FOR THE MOST RECENT MONTH-END PERFORMANCE FIGURES, PLEASE VISIT
VANKAMPEN.COM OR SPEAK WITH YOUR FINANCIAL ADVISOR. INVESTMENT RETURNS, NET
ASSET VALUE (NAV) AND COMMON SHARE MARKET PRICE WILL FLUCTUATE AND FUND SHARES,
WHEN SOLD, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
The NAV per share is determined by dividing the value of the fund's portfolio
securities, cash and other assets, less all liabilities, 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 fund 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
fund's dividend reinvestment plan, and sale of all shares at the end of the
period.
The Lehman Brothers BBB Corporate Bond Index is generally representative of
corporate 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
Fund Report
FOR THE SIX-MONTH PERIOD ENDED DECEMBER 31, 2006
MARKET CONDITIONS
The Federal Open Market Committee (the "Fed") took a widely anticipated respite
from its monetary tightening campaign during the second half of 2006, electing
to keep the target federal funds rate unchanged for the duration of the year.
Despite the pause, however, the Fed continued to acknowledge the potential for
inflation risks and reiterated previous statements that further actions
regarding interest rates would be data dependent.
Within the investment-grade corporate sector, lower-rated issues (BBB and A
rated) outpaced higher-rated issues (AA rated and above). Industrials posted the
highest returns, followed by utilities and financials. Overall, longer-dated
corporate issues underperformed shorter-dated issues during the period and yield
spreads across the corporate market narrowed slightly.
PERFORMANCE ANALYSIS
The fund'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 fund's portfolio securities, cash and other assets, less all
liabilities, 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 fund underperformed its benchmark index, the Lehman Brothers BBB Corporate
Bond Index. On a market price basis, the fund outperformed its benchmark.
TOTAL RETURNS FOR THE SIX-MONTH PERIOD ENDED DECEMBER 31, 2006
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BASED ON BASED ON LEHMAN BROTHERS BBB
NAV MARKET PRICE CORPORATE BOND INDEX
5.63% 10.31% 6.13%
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Performance data quoted represents past performance, which is no guarantee of
future results, and current performance may be lower or higher than the figures
shown. Investment return, net asset value and common share market price will
fluctuate and fund shares, when sold, may be worth more or less than their
original cost. See Performance Summary for additional performance information
and index definition.
We kept the fund's duration (a measure of interest-rate risk) well below that of
the benchmark during the reporting period. This defensive posture detracted from
the fund's relative performance because, on a net basis, yields declined,
especially in short- and intermediate portions of the yield curve.
In terms of credit risk, the fund was also positioned defensively with a focus
on higher-quality securities during the period. This conservative posture
dampened
2
performance as the lower-rated segments of the credit market outperformed. On a
more positive note, however, strong security selection within both the
investment grade and below-investment grade sectors was additive to performance.
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 fund in
the future.
CHANGES IN INVESTMENT POLICIES
The fund approved changes/clarifications in its investment policies to allow the
fund to enter into the following transactions.
CERTAIN DERIVATIVE 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.
Structured Products. The fund may invest in structured notes and other types of
structured investments (referred to collectively as "structured products"). A
structured note is a derivative security for which the amount of principal
repayment and/or interest payments is based on the movement of one or more
"factors." These factors include, but are not limited to, currency exchange
rates, interest rates (such as the prime lending rate or LIBOR), referenced
bonds and stock indices. Some of these factors may or may not correlate to the
total rate of return on one or more underlying instruments referenced in such
notes. In some cases, the impact of the movements of these factors may increase
or decrease through the use of multipliers or deflators.
Generally, investments in structured products are interests in entities
organized and operated for the purpose of restructuring the investment
characteristics of underlying investment interests or securities. These
investment entities may be structured as trusts or other types of pooled
investment vehicles. This type of restructuring generally involves the deposit
with or purchase by an entity of the underlying investments and the issuance by
that entity of one or more classes of securities backed by, or representing
interests in, the underlying investments referencing an indicator related to
such investments. The cash flow or rate of return on the underlying investments
may be apportioned among the newly issued securities to create different
investment characteristics, such as varying maturities, credit quality, payment
priorities and interest rate provisions. The cash flow or rate of return on a
structured product may be determined by
3
applying a multiplier to the rate of total return on the underlying investments
or referenced indicator. Application of a multiplier is comparable to the use of
financial leverage, a speculative technique. Leverage magnifies the potential
for gain and the risk of loss. As a result, a relatively small decline in the
value of the underlying investments or referenced indicator could result in a
relatively large loss in the value of a structured product. Holders of
structured products bear risks of the underlying index or reference obligation
and are subject to counterparty risk.
The fund may have the right to receive payments to which it is entitled only
from the structured product, and generally does not have direct rights against
the issuer. While certain structured investment vehicles enable the investor to
acquire interests in a pool of securities without the brokerage and other
expenses associated with directly holding the same securities, investors in
structured vehicles generally pay their share of the investment vehicle's
administrative and other expenses. Certain structured products may be thinly
traded or have a limited trading market and may have the effect of increasing
the fund's illiquidity to the extent that the fund, at a particular point in
time, may be unable to find qualified buyers for these securities.
Investments in structured notes involve risks including interest rate risk,
credit risk and market risk. Where the fund's investments in structured notes
are based upon the movement of one or more factors, including currency exchange
rates, interest rates, referenced bonds and stock indices, depending on the
factor used and the use of multipliers or deflators, changes in interest rates
and movement of the factor may cause significant price fluctuations.
Additionally, changes in the reference instrument or security may cause the
interest rate on the structured note to be reduced to zero and any further
changes in the reference instrument may then reduce the principal amount payable
on maturity. Structured notes may be less liquid than other types of securities
and more volatile than the reference instrument or security underlying the note.
Swaps. The fund may enter into interest rate, index, total rate of return and
credit default swaps and the purchase or sale of related caps, floors and
collars. The fund expects to enter into these transactions primarily to preserve
a return or spread on a particular investment or portion of its portfolio, as a
duration management technique or to protect against any increase in the price of
securities the fund anticipates purchasing at a later date. The fund intends to
use these transactions as hedges and not as speculative investments and will not
sell interest rate caps or floors where it does not own securities or other
instruments providing the income stream the fund may be obligated to pay.
Interest swaps involve the exchange by the fund with another party of their
respective commitments to pay or receive interest, e.g., an exchange of floating
rate payments for fixed rate payments with respect to a notional amount of
principal. The purchase of an interest rate cap entitles the purchaser, to the
extent that a specified index exceeds a predetermined interest rate, to receive
payments of interest on a contractually-based principal amount from the party
4
selling the interest rate cap. The purchase of an interest rate floor entitles
the purchaser, to the extent that a specified index falls below a predetermined
interest rate, to receive payments of interest on a contractually-based
principal amount from the party selling the interest rate floor. An interest
rate collar combines the elements of purchasing a cap and selling a floor. The
collar protects against an interest rate rise above the maximum amount but
foregoes the benefit of an interest rate decline below the minimum amount.
An index swap is an agreement to swap cash flows on a notional amount based on
changes in the values of the reference indices. The purchase of a cap entitles
the purchaser to receive payments on a notional principal amount from the party
selling such cap to the extent that a specified index exceeds a predetermined
interest rate or amount. The purchase of a floor entitles the purchaser to
receive payments on a notional principal amount from the party selling such
floor to the extent that a specified index falls below a predetermined interest
rate or amount. A collar is a combination of a cap and a floor that preserves a
certain return within a predetermined range of interest rates or values.
A total rate of return swap is an agreement in which one party (total return
payer) transfers the total economic performance of a reference obligation to the
other party (total return receiver). Total economic performance includes income
from interest and fees, gains or losses from market movements, and credit
losses. The total return receiver assumes the entire economic exposure--that is,
both market and credit exposure--to the reference asset. The total return
payer--often the owner of the reference obligation--gives up economic exposure
to the performance of the reference asset and in return takes on counterparty
credit exposure to the total return receiver in the event of a default or fall
in value of the reference asset.
The fund may enter into credit default swap contracts or credit-linked notes for
hedging purposes or to gain exposure to a credit in which the fund may otherwise
invest. A credit default swap is an agreement between two parties to exchange
the credit risk of an issuer (reference entity). A buyer of a credit default
swap is said to buy protection by paying periodic fees in return for a
contingent payment from the seller if the reference entity has a credit event
such as a bankruptcy, a failure to pay outstanding obligations or deteriorating
credit while the swap is outstanding. A seller of a credit default swap is said
to sell protection and thus collects the periodic fees and profits if the credit
of the reference entity remains stable or improves while the swap is outstanding
but the seller in a credit default swap contract would be required to pay an
agreed-upon amount to the buyer in the event of an adverse credit event of the
reference entity. A credit-linked note is a synthetic security, typically issued
by a special purpose vehicle, that trades like a bond issued by the reference
entity but with the economics of the credit default swap. For this security, the
buyer of protection sells the note. The buyer of protection (note seller) will
pay periodic payments and profit if the reference entity defaults. Unlike the
swap,
5
the buyer of protection in a credit-linked note will receive money at the time
of transaction from the sale of the note, and will return this money at the
contract's maturity if no credit event occurs. Conversely, the seller of
protection purchases the notes. As with a credit default swap, the note
purchaser (protection seller) received periodic payments. Unlike the swap
transaction, the protection seller must pay for the note at the time of the
transaction and will collect this money at the contract's maturity if no credit
event occurs.
The fund will enter into swap, cap or floor transactions only with
counterparties approved by the Adviser in accordance with guidelines established
by the fund's Board of Trustees. The Adviser will monitor the creditworthiness
of counterparties to the fund's swap, cap, floor and collar transactions on an
ongoing basis. If there is a default by the other party to such a transaction,
the fund will have contractual remedies pursuant to the agreements related to
the transaction. The fund may enter into swaps, caps, collars and floors on
either an asset-based or liability-based basis, and will usually enter into
swaps on a net basis, i.e., the two payment streams are netted out, with the
fund receiving or paying, as the case may be, only the net amount of the two
payments. The net amount of the excess, if any, of the fund's obligations over
its entitlements with respect to each swap will be accrued on a daily basis and
the fund segregates an amount of cash and/or liquid securities having an
aggregate net asset value at least equal to the accrued excess. If the fund
enters into a swap transaction on other than a net basis, the fund would
segregate the full amount accrued on a daily basis of the fund's obligations
with respect to the swap. To the extent the fund sells (i.e. writes) caps,
floors and collars, it will segregate cash and/or liquid securities having an
aggregate net asset value at lease equal to the full amount, accrued on a daily
basis, of the fund's net obligations with respect to the caps, floors or
collars.
The use of swaps is a highly specialized activity which involves investment
techniques and risks different from those associated with ordinary portfolio
securities transactions. If the Adviser is incorrect in its forecasts of the
market values, interest rates and other applicable factors, the investment
performance of the fund would diminish compared with what it would have been if
these investment techniques were not used. The use of swaps, caps, collars and
floors may also have the effect of shifting the recognition of income between
current and future periods.
Collateralized Mortgage Obligations and Multiclass Pass-Through Securities. The
fund may invest in collateralized mortgage obligations ("CMOs"). CMOs are debt
obligations collateralized by mortgage loans or mortgage pass-through
securities. Typically, CMOs are collateralized by GNMA, FNMA or FHLMC
certificates, but also may be collateralized by whole loans or private pass-
through securities (such collateral collectively hereinafter referred to as
"Mortgage Assets"). Multiclass pass-through securities are equity interests in a
trust composed of Mortgage Assets. Unless the context indicates otherwise, all
references herein to CMOs include multiclass pass-through securities. Payments
6
of principal and interest on the Mortgage Assets, and any reinvestment income
thereon, provide the funds to pay debt service on the CMOs or make scheduled
distributions on the multiclass pass-through securities. CMOs deemed to be U.S.
government securities are those issued or guaranteed as to principal and
interest by a person controlled or supervised by and acting as an agency or
instrumentality of the U.S. government. The issuer of a series of CMOs may elect
to be treated as a Real Estate Mortgage Investment Conduit (a "REMIC").
In a CMO, a series of bonds or certificates is issued in multiple classes. Each
class of CMOs, often referred to as a "tranche," is issued at a specific fixed
or floating coupon rate and has a stated maturity or final distribution date.
Principal prepayments on the Mortgage Assets may cause the CMOs to be retired
substantially earlier than their stated maturities or final distribution dates.
Interest is paid or accrues on all classes of the CMOs on a monthly, quarterly
or semi-annual basis. The principal of and interest on the Mortgage Assets may
be allocated among the several classes of a series of a CMO in innumerable ways.
The fund may invest in, among others, parallel pay CMOs and Planned
Authorization Class CMOs ("PAC Bonds"). Parallel pay CMOs are structured to
provide payments of principal on each payment date to more than one class. These
simultaneous payments are taken into account in calculating the stated maturity
date or final distribution date of each class, which, as with other CMO
structures, must be retired by its stated maturity date or final distribution
date but may be retired earlier. PAC Bonds generally require payments of a
specified amount of principal on each payment date. PAC Bonds are always
parallel pay CMOs with the required principal payment on such securities having
the highest priority after interest has been paid to all classes. Substantially
all of the CMOs in which the fund invests are PAC Bonds.
7
RATINGS ALLOCATION AS OF 12/31/06
AAA/Aaa 25.1%
AA/Aa 15.5
A/A 25.0
BBB/Baa 30.4
BB/Ba 3.2
B/B 0.8
SUMMARY OF INVESTMENTS BY INDUSTRY CLASSIFICATION AS OF 12/31/06
United States Government Agency Obligations 20.1%
Banking 14.2
Electric 5.9
Noncaptive-Consumer Finance 5.3
Property & Casualty Insurance 3.6
Retailers 3.5
Wireline 3.0
Media-Cable 2.7
Automotive 2.7
Noncaptive-Diversified Finance 2.3
Railroads 2.2
Life Insurance 2.0
Diversified Manufacturing 1.7
Media-Noncable 1.5
Brokerage 1.3
Food/Beverage 1.3
Integrated Energy 1.1
Health Care 1.0
Services 0.9
Construction Machinery 0.8
Supermarkets 0.8
Consumer Products 0.7
Lodging 0.6
Distributors 0.6
Pipelines 0.6
Other Utilities 0.6
Technology 0.5
Aerospace & Defense 0.5
Oil Field Services 0.5
Textile 0.4
Chemicals 0.3
Environmental & Facilities Services 0.2
Independent Energy 0.2
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Total Long-Term Investments 83.6
Total Short-Term Investments 16.4
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Total Investments 100.0%
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 industries shown above. Ratings are as a percentage of total
long-term investments. Summary of Investments by Industry Classification is as a
percentage of total investments. 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.
8
FOR MORE INFORMATION ABOUT PORTFOLIO HOLDINGS
Each Van Kampen fund provides a complete schedule of portfolio holdings in its
semiannual and annual reports within 60 days of the end of the fund'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 fund 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 fund files a complete schedule of portfolio
holdings with the SEC for the fund'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, D.C. 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 fund's fiscal quarter filings by contacting Van
Kampen Client Relations at (800) 341-2929.
In addition to filing a complete schedule of portfolio holdings with the SEC
each fiscal quarter, the fund makes portfolio holdings information available by
periodically providing the information on its public web site,
www.vankampen.com. The fund provides a complete schedule of portfolio holdings
on the public web site on a calendar-quarter basis approximately 31 calendar
days after the close of the calendar quarter. The fund also provides Top 10
holdings information on the public web site approximately 15 business days
following the end of each month. For more information, call (800) 341-2929.
PROXY VOTING POLICY AND PROCEDURES AND PROXY VOTING RECORD
You may obtain a copy of the fund'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 fund 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.
9
VAN KAMPEN BOND FUND
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2006 (UNAUDITED)
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
-------------------------------------------------------------------------------------------
CORPORATE BONDS 69.9%
AEROSPACE & DEFENSE 0.6%
$1,307 Raytheon Co. ................................... 4.500% 11/15/07 $ 1,296,920
------------
AUTOMOTIVE 2.9%
605 Arvinmeritor, Inc. ............................. 8.750 03/01/12 624,663
1,280 DaimlerChrysler NA Holding Corp. ............... 8.500 01/18/31 1,528,042
2,550 General Motors Acceptance Corp. ................ 6.875 09/15/11 2,618,133
1,670 General Motors Corp. ........................... 8.375 07/15/33 1,553,100
------------
6,323,938
------------
BANKING 15.6%
2,230 Bank of America Corp. .......................... 3.375 02/17/09 2,152,398
2,250 HBOS Treasury Services PLC (United Kingdom)
(a)............................................. 3.500 11/30/07 2,213,588
2,860 JPMorgan Chase & Co. ........................... 6.750 02/01/11 3,009,418
2,255 Marshall & Ilsley Bank.......................... 3.800 02/08/08 2,219,860
1,635 MBNA Corp. (b).................................. 5.798 05/05/08 1,645,659
2,315 National City Bank.............................. 3.375 10/15/07 2,275,890
1,430 Popular North America, Inc. .................... 4.250 04/01/08 1,409,318
805 Popular North America, Inc. .................... 5.650 04/15/09 807,324
2,195 SunTrust Banks, Inc. ........................... 5.050 07/01/07 2,192,403
2,700 Unicredito Luxembourg Finance (Luxembourg) (a)
(b)............................................. 5.426 10/24/08 2,701,318
2,250 U.S. Bancorp.................................... 3.950 08/23/07 2,230,645
1,090 USB Capital IX (c).............................. 6.189 04/15/42 1,114,240
4,390 Wachovia Capital Trust III (c).................. 5.800 08/29/49 4,430,318
1,350 Wachovia Corp. ................................. 3.625 02/17/09 1,307,786
925 Washington Mutual Bank FA....................... 5.500 01/15/13 922,358
900 Washington Mutual, Inc. ........................ 8.250 04/01/10 970,113
2,190 Wells Fargo & Co. .............................. 5.125 02/15/07 2,189,249
------------
33,791,885
------------
BROKERAGE 1.5%
2,000 Lehman Brothers Holdings, Inc. ................. 8.500 05/01/07 2,020,484
775 World Financial Properties (a).................. 6.910 09/01/13 811,182
352 World Financial Properties (a).................. 6.950 09/01/13 369,385
------------
3,201,051
------------
CHEMICALS 0.3%
640 ICI Wilmington, Inc. ........................... 4.375 12/01/08 628,243
------------
CONSTRUCTION MACHINERY 0.9%
2,045 Caterpillar Financial Services Corp., Ser F..... 3.625 11/15/07 2,015,589
------------
CONSUMER PRODUCTS 0.8%
1,725 Clorox Co. (b).................................. 5.485 12/14/07 1,727,336
------------
10 See Notes to Financial Statements
VAN KAMPEN BOND FUND
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2006 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
-------------------------------------------------------------------------------------------
DISTRIBUTORS 0.7%
$ 585 Keyspan Corp. .................................. 4.900% 05/16/08 $ 580,946
890 Sempra Energy................................... 4.621 05/17/07 886,685
------------
1,467,631
------------
DIVERSIFIED MANUFACTURING 1.9%
1,345 Brascan Corp. (Canada).......................... 7.125 06/15/12 1,434,671
1,275 Cooper Industries, Inc. ........................ 5.250 07/01/07 1,271,240
1,325 Cooper Industries, Inc. ........................ 5.250 11/15/12 1,313,238
------------
4,019,149
------------
ELECTRIC 6.5%
1,350 Ameren Corp. ................................... 4.263 05/15/07 1,343,095
1,405 Arizona Public Service Co. ..................... 5.800 06/30/14 1,403,889
805 Carolina Power & Light Co. ..................... 6.800 08/15/07 810,905
1,580 CC Funding Trust I.............................. 6.900 02/16/07 1,581,961
65 Detroit Edison Co. ............................. 5.200 10/15/12 64,094
865 Detroit Edison Co. ............................. 6.125 10/01/10 885,039
960 Duquesne Light Co., Ser O....................... 6.700 04/15/12 1,013,890
70 Duquesne Light Co., Ser Q....................... 5.700 05/15/14 70,316
655 Entergy Gulf States, Inc. ...................... 3.600 06/01/08 637,917
1,600 Entergy Gulf States, Inc. (b)................... 5.769 12/01/09 1,597,821
425 Entergy Gulf States, Inc. (a) (b)............... 6.100 12/08/08 426,132
255 Indianapolis Power & Light Co. (a).............. 6.300 07/01/13 262,185
900 NiSource Finance Corp. (b)...................... 5.940 11/23/09 900,980
1,270 Ohio Power Co., Ser K........................... 6.000 06/01/16 1,306,393
265 PSE&G Energy Holdings, LLC...................... 8.625 02/15/08 272,950
570 Public Service Electric & Gas, Series B......... 5.125 09/01/12 562,979
445 TXU Energy Co. ................................. 7.000 03/15/13 466,213
560 Wisconsin Electric Power........................ 3.500 12/01/07 550,945
------------
14,157,704
------------
ENVIRONMENTAL & FACILITIES SERVICES 0.3%
550 Waste Management, Inc. ......................... 7.375 08/01/10 585,498
------------
FOOD/BEVERAGE 1.4%
660 ConAgra Foods, Inc. ............................ 7.000 10/01/28 717,091
520 ConAgra Foods, Inc. ............................ 8.250 09/15/30 640,512
160 Pilgrim's Pride Corp. .......................... 9.625 09/15/11 168,000
780 Sara Lee Corp. ................................. 6.125 11/01/32 707,929
680 YUM! Brands, Inc. .............................. 8.875 04/15/11 763,490
------------
2,997,022
------------
HEALTH CARE 1.1%
1,130 UnitedHealth Group, Inc. ....................... 5.200 01/17/07 1,129,893
650 Wellpoint, Inc. ................................ 3.750 12/14/07 639,886
590 Wellpoint, Inc. ................................ 4.250 12/15/09 573,894
------------
2,343,673
------------
INDEPENDENT ENERGY 0.2%
470 Kerr-McGee Corp. ............................... 6.625 10/15/07 473,149
------------
See Notes to Financial Statements 11
VAN KAMPEN BOND FUND
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2006 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
-------------------------------------------------------------------------------------------
INTEGRATED ENERGY 1.2%
$ 790 Consumers Energy Co., Ser F..................... 4.000% 05/15/10 $ 755,697
455 Consumers Energy Co., Ser H..................... 4.800 02/17/09 449,261
1,300 Kinder Morgan, Inc. ............................ 6.500 09/01/12 1,307,689
------------
2,512,647
------------
LIFE INSURANCE 2.2%
635 AXA Financial, Inc. ............................ 6.500 04/01/08 642,828
475 John Hancock Financial Services, Inc. .......... 5.625 12/01/08 477,560
105 Metlife, Inc. .................................. 6.125 12/01/11 108,658
1,030 Monumental Global Funding II (a)................ 3.850 03/03/08 1,011,188
585 Nationwide Financial Services, Inc. ............ 6.250 11/15/11 605,305
1,895 Xlliac Global Funding (a)....................... 4.800 08/10/10 1,858,700
------------
4,704,239
------------
LODGING 0.7%
1,325 Hyatt Equities LLC (a).......................... 6.875 06/15/07 1,330,651
185 Starwood Hotels & Resorts Worldwide, Inc. ...... 7.375 05/01/07 185,771
------------
1,516,422
------------
MEDIA-CABLE 2.9%
1,835 Comcast Cable Communications, Inc. ............. 6.750 01/30/11 1,924,397
90 Comcast Cable Communications, Inc. ............. 7.125 06/15/13 97,119
600 Comcast Cable Communications, Inc. ............. 8.375 05/01/07 605,600
935 Echostar DBS Corp. ............................. 6.375 10/01/11 931,494
180 Echostar DBS Corp. ............................. 6.625 10/01/14 175,950
2,645 Time Warner, Inc. (b)........................... 5.606 11/13/09 2,648,806
------------
6,383,366
------------
MEDIA-NONCABLE 1.7%
950 Interpublic Group of Cos., Inc. ................ 5.400 11/15/09 935,750
135 News America, Inc. ............................. 7.280 06/30/28 145,694
970 News America Holdings, Inc. .................... 8.875 04/26/23 1,185,064
1,310 Viacom, Inc. ................................... 6.875 04/30/36 1,299,213
------------
3,565,721
------------
NONCAPTIVE-CONSUMER FINANCE 5.9%
1,000 American Express Co. ........................... 4.750 06/17/09 992,643
230 American General Finance Corp. ................. 4.625 05/15/09 226,493
2,000 American General Finance Corp. ................. 4.625 09/01/10 1,953,382
2,245 Countrywide Home Loans, Inc. ................... 3.250 05/21/08 2,183,222
1,555 HSBC Finance Corp. ............................. 6.750 05/15/11 1,647,272
1,000 HSBC Finance Corp. ............................. 7.875 03/01/07 1,003,842
150 HSBC Finance Corp. ............................. 8.000 07/15/10 163,070
2,595 Residential Capital LLC......................... 6.375 06/30/10 2,627,233
1,600 SLM Corp. (b)................................... 5.537 07/26/10 1,601,899
300 Washington Mutual Preferred Funding II (a)
(c)............................................. 6.665 12/31/49 301,349
------------
12,700,405
------------
NONCAPTIVE-DIVERSIFIED FINANCE 2.5%
415 CIT Group, Inc. ................................ 3.650 11/23/07 409,175
290 CIT Group, Inc. ................................ 4.750 08/15/08 287,648
12 See Notes to Financial Statements
VAN KAMPEN BOND FUND
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2006 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
-------------------------------------------------------------------------------------------
NONCAPTIVE-DIVERSIFIED FINANCE (CONTINUED)
$ 415 CIT Group, Inc. ................................ 7.375% 04/02/07 $ 417,002
2,100 General Electric Capital Corp., Ser A........... 4.750 09/15/14 2,032,462
90 General Electric Capital Corp., Ser A........... 5.875 02/15/12 92,650
2,240 Nationwide Building Society (United Kingdom)
(a)............................................. 4.250 02/01/10 2,171,671
------------
5,410,608
------------
OIL FIELD SERVICES 0.5%
1,195 Panhandle Eastern Pipe Line Co., Ser B.......... 2.750 03/15/07 1,187,997
------------
OTHER UTILITIES 0.6%
1,295 Plains All American Pipeline (a)................ 6.700 05/15/36 1,336,406
------------
PIPELINES 0.7%
590 Consolidated Natural Gas Co., Ser C............. 6.250 11/01/11 610,002
755 Texas Eastern Transmission Corp. ............... 7.000 07/15/32 850,314
------------
1,460,316
------------
PROPERTY & CASUALTY INSURANCE 3.9%
1,195 AIG SunAmerica Global Financing VI (a).......... 6.300 05/10/11 1,244,766
1,545 Farmers Exchange Capital (a).................... 7.050 07/15/28 1,616,793
1,230 Farmers Insurance Exchange Surplus (a).......... 8.625 05/01/24 1,478,904
1,800 Mantis Reef, Ltd. (Australia) (a)............... 4.692 11/14/08 1,777,669
1,415 St. Paul Travelers Cos., Inc. .................. 5.010 08/16/07 1,409,797
1,035 Two-Rock Pass Through Trust (Bermuda) (a) (b)... 6.316 02/11/49 1,019,703
------------
8,547,632
------------
RAILROADS 2.4%
1,060 Burlington Northern Santa Fe Corp. ............. 6.125 03/15/09 1,077,285
1,000 CSX Corp. ...................................... 6.750 03/15/11 1,050,949
520 Norfolk Southern Corp. ......................... 7.350 05/15/07 523,650
2,600 Union Pacific Corp. ............................ 6.625 02/01/08 2,630,865
------------
5,282,749
------------
RETAILERS 3.8%
270 CVS Corp. ...................................... 3.875 11/01/07 266,609
650 CVS Corp. ...................................... 5.750 08/15/11 658,477
2,180 CVS Lease Pass Through Trust (a)................ 6.036 12/10/28 2,177,569
500 Federated Department Stores, Inc. .............. 6.300 04/01/09 508,598
1,500 Federated Department Stores, Inc. .............. 6.625 09/01/08 1,524,987
620 Home Depot, Inc. (b)............................ 5.490 12/16/09 620,459
1,275 May Department Stores Co. ...................... 5.950 11/01/08 1,284,204
1,270 May Department Stores Co. ...................... 6.700 07/15/34 1,256,584
------------
8,297,487
------------
SERVICES 1.0%
1,000 FedEx Corp. .................................... 2.650 04/01/07 993,268
1,105 FedEx Corp. .................................... 5.500 08/15/09 1,109,865
------------
2,103,133
------------
See Notes to Financial Statements 13
VAN KAMPEN BOND FUND
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2006 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
-------------------------------------------------------------------------------------------
SUPERMARKETS 0.9%
$ 495 Delhaize America, Inc. ......................... 9.000% 04/15/31 $ 590,191
1,270 Fred Meyer, Inc. ............................... 7.450 03/01/08 1,297,851
------------
1,888,042
------------
TECHNOLOGY 0.6%
1,300 Hewlett-Packard Co. (b)......................... 5.496 05/22/09 1,302,924
------------
TEXTILE 0.5%
995 Mohawk Industries, Inc., Ser D.................. 7.200 04/15/12 1,034,606
------------
WIRELINE 3.2%
1,835 AT&T Corp. ..................................... 8.000 11/15/31 2,283,531
1,385 France Telecom SA (France)...................... 8.500 03/01/31 1,823,521
1,125 SBC Communications, Inc. ....................... 6.150 09/15/34 1,110,147
1,010 Sprint Capital Corp. ........................... 8.750 03/15/32 1,219,087
590 Verizon New England, Inc. ...................... 6.500 09/15/11 607,209
------------
7,043,495
------------
TOTAL CORPORATE BONDS 69.9%................................................ 151,306,983
------------
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS 22.1%
7,180 United States Treasury Bonds.................... 6.125 08/15/29 8,393,872
7,260 United States Treasury Bonds.................... 6.375 08/15/27 8,641,106
21,250 United States Treasury Notes (d)................ 4.250 08/15/13 20,723,744
7,350 United States Treasury Notes.................... 4.250 11/15/13 7,158,217
3,000 United States Treasury Notes (d)................ 4.500 02/28/11 2,978,790
------------
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS........................... 47,895,729
------------
TOTAL LONG-TERM INVESTMENTS 92.0%
(Cost $198,413,895)....................................................... 199,202,712
------------
SHORT-TERM INVESTMENTS 18.1%
REPURCHASE AGREEMENTS 18.0%
Citigroup Global Markets, Inc. ($7,937,688 par collateralized by U.S.
Government obligations in a pooled cash account, interest rate of 5.23%,
dated 12/29/06, to be sold on 01/02/07 at $7,942,301)....................
7,937,688
14 See Notes to Financial Statements
VAN KAMPEN BOND FUND
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2006 (UNAUDITED) continued
DESCRIPTION VALUE
----------------------------------------------------------------------------------------------------------------------
State Street Bank & Trust Co. ($30,912,312 par collateralized by U.S. Government obligations in a
pooled cash account, interest rate of 5.08%, dated 12/29/06, to be sold on 01/02/07 at
$30,929,760)......................................................................................... $ 30,912,312
------------
TOTAL REPURCHASE AGREEMENTS 18.0%..................................................................... 38,850,000
------------
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS 0.1%
United States Treasury Bills ($300,000 par, yielding 5.297%, 01/11/07 maturity) (e).................... 299,704
------------
TOTAL SHORT-TERM INVESTMENTS 18.1%
(Cost $39,149,576)................................................................................. 39,149,704
------------
TOTAL INVESTMENTS 110.1%
(Cost $237,563,471)................................................................................ 238,352,416
LIABILITIES IN EXCESS OF OTHER ASSETS (10.1%)......................................................... (21,927,829)
------------
NET ASSETS 100.0%..................................................................................... $216,424,587
============
Percentages are calculated as a percentage of net assets.
(a) 144A-Private Placement security which is exempt from registration under Rule
144A of the Securities Act of 1933, as amended. These securities may only be
resold in transactions exempt from registration which are normally those
transactions with qualified institutional buyers.
(b) Floating Rate Coupon
(c) Variable Rate Coupon
(d) Security purchased on a when-issued or delayed delivery basis.
(e) All or a portion of this security has been physically segregated in
connection with open futures contracts.
See Notes to Financial Statements 15
VAN KAMPEN BOND FUND
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2006 (UNAUDITED) continued
FUTURES CONTRACTS OUTSTANDING AS OF DECEMBER 31, 2006:
UNREALIZED
APPRECIATION/
CONTRACTS DEPRECIATION
LONG CONTRACTS:
U.S. Treasury Notes 10-Year Futures March 2007
(Current Notional Value of $107,469 per contract)......... 52 $ (43,619)
U.S. Treasury Notes 5-Year Futures March 2007
(Current Notional Value of $105,063 per contract)......... 111 (82,251)
U.S. Treasury Bond Futures March 2007
(Current Notional Value of $111,438 per contract)......... 181 (310,099)
SHORT CONTRACTS:
U.S. Treasury Notes 2-Year Futures March 2007
(Current Notional Value of $204,031 per contract)......... 114 52,976
--- ---------
458 $(382,993)
=== =========
SWAP AGREEMENTS OUTSTANDING AS OF DECEMBER 31, 2006:
CREDIT DEFAULT SWAPS
NOTIONAL UNREALIZED
BUY/SELL PAY/RECEIVE EXPIRATION AMOUNT APPRECIATION/
COUNTERPARTY REFERENCE ENTITY PROTECTION FIXED RATE DATE (000) DEPRECIATION
Goldman Sachs Capital
Markets Dow Jones CDX
North America
Investment
Grade--High
Volatility Buy 0.75% 6/20/11 $ 8,700 $(18,255)
Goldman Sachs Capital
Markets Motorola, Inc. Buy 0.16 12/20/11 1,500 (635)
Goldman Sachs Capital
Markets Motorola, Inc. Buy 0.15 12/20/11 720 (82)
Goldman Sachs Capital
Markets Southwest
Airlines Co. Buy 0.22 12/20/11 2,200 11,389
Goldman Sachs Capital
Markets The Hartford
Financial
Services Group,
Inc. Buy 0.12 12/20/11 2,200 (506)
JPMorgan Chase Bank,
N.A. Lehman Brothers
Holdings, Inc. Buy 0.20 12/20/11 2,200 1,934
JPMorgan Chase Bank,
N.A. Union Pacific
Corporation Buy 0.19 12/20/11 2,200 565
--------
$ (5,590)
========
16 See Notes to Financial Statements
VAN KAMPEN BOND FUND
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
December 31, 2006 (Unaudited)
ASSETS:
Total Investments, including repurchase agreements of
$38,850,000 (Cost $237,563,471)........................... $238,352,416
Cash........................................................ 698
Interest Receivable......................................... 2,976,541
Other....................................................... 17,124
------------
Total Assets............................................ 241,346,779
------------
LIABILITIES:
Payables:
Investments Purchased..................................... 24,318,985
Income Distributions...................................... 129,579
Investment Advisory Fee................................... 78,058
Variation Margin on Futures............................... 21,500
Other Affiliates.......................................... 5,598
Trustees' Deferred Compensation and Retirement Plans........ 247,521
Swap Contracts.............................................. 11,014
Accrued Expenses............................................ 109,937
------------
Total Liabilities....................................... 24,922,192
------------
NET ASSETS.................................................. $216,424,587
============
NET ASSET VALUE PER COMMON SHARE ($216,424,587 divided by
11,362,465 shares outstanding)............................ $ 19.05
============
NET ASSETS CONSIST OF:
Common Shares ($1.00 par value with 15,000,000 shares
authorized, 11,362,465 shares issued and outstanding)..... $ 11,362,465
Paid in Surplus............................................. 207,602,030
Net Unrealized Appreciation................................. 397,636
Accumulated Net Realized Loss............................... (1,220,068)
Accumulated Undistributed Net Investment Income............. (1,717,476)
------------
NET ASSETS.................................................. $216,424,587
============
See Notes to Financial Statements 17
VAN KAMPEN BOND FUND
FINANCIAL STATEMENTS continued
Statement of Operations
For the Six Months Ended December 31, 2006 (Unaudited)
INVESTMENT INCOME:
Interest.................................................... $ 5,752,272
-----------
EXPENSES:
Investment Advisory Fee..................................... 458,041
Trustees' Fees and Related Expenses......................... 33,193
Reports to Shareholders..................................... 31,998
Transfer Agent Fees......................................... 27,964
Professional Fees........................................... 26,054
Accounting and Administrative Expenses...................... 24,964
Custody..................................................... 14,112
Registration Fees........................................... 10,146
Other....................................................... 11,739
-----------
Total Expenses.......................................... 638,211
Less Credits Earned on Cash Balances.................... 36
-----------
Net Expenses.............................................. 638,175
-----------
NET INVESTMENT INCOME....................................... $ 5,114,097
===========
REALIZED AND UNREALIZED GAIN/LOSS:
Realized Gain/Loss:
Investments............................................... $ (100,089)
Futures................................................... 1,230,592
Swap Contracts............................................ (89,931)
-----------
Net Realized Gain........................................... 1,040,572
-----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... (4,055,795)
-----------
End of the Period:
Investments............................................. 788,945
Futures................................................. (382,993)
Swap Contracts.......................................... (8,316)
-----------
397,636
-----------
Net Unrealized Appreciation During the Period............... 4,453,431
-----------
NET REALIZED AND UNREALIZED GAIN............................ $ 5,494,003
===========
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $10,608,100
===========
18 See Notes to Financial Statements
VAN KAMPEN BOND FUND
FINANCIAL STATEMENTS continued
Statements of Changes in Net Assets (Unaudited)
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 2006 JUNE 30, 2006
----------------------------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income................................... $ 5,114,097 $ 10,056,111
Net Realized Gain....................................... 1,040,572 113,668
Net Unrealized Appreciation/Depreciation During the
Period................................................ 4,453,431 (11,820,422)
------------ ------------
Change in Net Assets from Operations.................... 10,608,100 (1,650,643)
Distributions from Net Investment Income................ (5,408,535) (10,885,053)
------------ ------------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES..... 5,199,565 (12,535,696)
NET ASSETS:
Beginning of the Period................................. 211,225,022 223,760,718
------------ ------------
End of the Period (Including accumulated undistributed
net investment income of $(1,717,476) and
$(1,423,038), respectively)........................... $216,424,587 $211,225,022
============ ============
See Notes to Financial Statements 19
VAN KAMPEN BOND FUND
FINANCIAL HIGHLIGHTS (UNAUDITED)
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE SHARE OF THE FUND
OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
SIX MONTHS
ENDED YEAR ENDED JUNE 30,
DECEMBER 31, ----------------------------------------------
2006 2006 2005 2004 2003 2002
--------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF
THE PERIOD.................... $18.59 $19.69 $19.15 $19.78 $18.78 $19.41
------ ------ ------ ------ ------ ------
Net Investment Income......... .45(a) .89(a) .96 1.03 1.10 1.26
Net Realized and Unrealized
Gain/Loss................... .49 (1.03) .60 (.54) 1.11 (.56)
------ ------ ------ ------ ------ ------
Total from Investment
Operations.................... .94 (.14) 1.56 .49 2.21 .70
Less Distributions from Net
Investment Income............. .48 .96 1.02 1.12 1.21 1.33
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF THE
PERIOD........................ $19.05 $18.59 $19.69 $19.15 $19.78 $18.78
====== ====== ====== ====== ====== ======
Common Share Market Price at End
of the Period................. $17.55 $16.40 $17.80 $17.02 $19.57 $18.50
Total Return (b)................ 10.31%* -2.59% 10.69% -7.44% 12.67% 3.50%
Net Assets at End of the Period
(In millions)................. $216.4 $211.2 $223.8 $217.6 $224.7 $213.4
Ratio of Expenses to Average Net
Assets........................ .59% .59% .60% .65% .65% .65%
Ratio of Net Investment Income
to Average Net Assets......... 4.69% 4.61% 4.90% 5.24% 5.79% 6.39%
Portfolio Turnover.............. 65%* 64% 61% 41% 57% 107%
* Non-Annualized
(a) Based on average shares outstanding.
(b) Total return based on common share market price 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
Fund's dividend reinvestment plan, and sale of all shares at the closing
common share market price at the end of the period indicated.
20 See Notes to Financial Statements
VAN KAMPEN BOND FUND
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2006 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen Bond Fund (the "Fund") is registered as a diversified, closed-end
management investment company under the Investment Company Act of 1940 (the
"1940 Act"), as amended. The Fund's investment objective is to seek interest
income while conserving capital through investing in a diversified portfolio
consisting primarily of high-quality debt securities.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
A. SECURITY VALUATION Fixed income investments are stated at value using market
quotations or indications of value obtained from an independent pricing service.
Investments in securities listed on a securities exchange are valued at their
last sales price as of the close of such securities exchange. Listed and
unlisted securities for which the last sales price is not available are valued
at the mean of the bid and asked prices. For those securities where quotations
or prices are not available as noted above, valuations are determined in
accordance with 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. Credit default swaps are valued using market
quotations 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
Fund 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 Fund will
segregate assets with its 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 December 31, 2006, the Fund had $24,318,985 of when-issued
or delayed delivery purchase commitments.
The Fund may invest in repurchase agreements, which are short-term
investments in which the Fund acquires ownership of a debt security and the
seller agrees to repurchase the security at a future time and specified price.
The Fund may invest independently in repurchase agreements, or transfer
uninvested cash balances into a pooled cash account along with other investment
companies advised by Van Kampen Asset Management (the "Adviser") or its
affiliates, the daily aggregate of which is invested in repurchase agreements.
Repurchase agreements are fully collateralized by the underlying debt security.
The Fund will make payment for such securities only upon physical delivery or
evidence of book entry transfer to the account of the custodian bank. The seller
is required to maintain the value of the underlying security at not less than
the repurchase proceeds due the Fund.
21
VAN KAMPEN BOND FUND
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2006 (UNAUDITED) continued
C. INVESTMENT INCOME Interest income is recorded on an accrual basis and
dividend income is recorded on the ex-dividend date. Premiums are amortized and
discounts are accreted over the expected life of each applicable security.
D. FEDERAL INCOME TAXES It is the Fund'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.
The Fund intends to utilize provisions of the federal income tax laws which
allow it to carry a realized capital loss forward for eight years following the
year of the loss and offset these losses against any future realized capital
gains. During the prior fiscal year, the Fund utilized capital losses carried
forward of $1,014,664. At June 30, 2006, the Fund had an accumulated capital
loss carryforward for tax purposes of $753,340, which will expire on June 30,
2011.
At December 31, 2006, the cost and related gross unrealized appreciation and
depreciation are as follows:
Cost of investments for tax purposes........................ $238,852,099
============
Gross tax unrealized appreciation........................... $ 2,400,120
Gross tax unrealized depreciation........................... $ (2,899,803)
------------
Net tax unrealized depreciation on investments.............. $ (499,683)
============
E. DISTRIBUTION OF INCOME AND GAINS The Fund declares and pays quarterly
dividends from net investment income. Net realized gains, if any, are
distributed annually. Distributions from net realized gains for book purposes
may include short-term capital gains and gains on futures transactions. All
short-term capital gains and a portion of futures gains are included as ordinary
income for tax purposes.
The tax character of distributions paid during the year ended June 30, 2006
was as follows:
Distributions paid from:
Ordinary income........................................... $10,897,728
Long-term capital gain.................................... -0-
-----------
$10,897,728
===========
As of June 30, 2006, the components of distributable earnings on a tax basis
were as follows:
Undistributed ordinary income............................... $58,085
Net realized gains or losses may differ for financial reporting and tax purposes
primarily as a result of the deferral of losses relating to wash sales
transactions.
F. EXPENSE REDUCTIONS During the six months ended December 31, 2006, the Fund's
custody fee was reduced by $36 as a result of credits earned on cash balances.
22
VAN KAMPEN BOND FUND
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2006 (UNAUDITED) continued
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of the Fund's Investment Advisory Agreement, the Adviser will
provide investment advice and facilities to the Fund for an annual fee payable
monthly as follows:
AVERAGE DAILY NET ASSETS % PER ANNUM
First $500 million.......................................... .42%
Over $500 million........................................... .35%
For the six months ended December 31, 2006, the Fund recognized expenses of
approximately $9,100 representing legal services provided by Skadden, Arps,
Slate, Meagher & Flom LLP, of which a trustee of the Fund is a partner of such
firm and he and his law firm provide legal services as legal counsel to the
Fund.
Under separate Accounting Services and Chief Compliance Officer (CCO)
Employment agreements, the Adviser provides accounting services and the CCO
provides compliance services to the Fund. The costs of these services are
allocated to each fund. For the six months ended December 31, 2006, the Fund
recognized expenses of approximately $8,000 representing Van Kampen Investments
Inc.'s or its affiliates' (collectively "Van Kampen") cost of providing
accounting services to the Fund, 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 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 Fund are also officers and directors of
Van Kampen. The Fund does not compensate its officers or trustees who are also
officers of Van Kampen.
The Fund provides deferred compensation and retirement plans for its
trustees who are not officers of Van Kampen. Under the deferred compensation
plan, trustees may elect to defer all or a portion of their compensation to a
later date. Benefits under the retirement plan are payable upon retirement for a
ten-year period and are based upon each trustee's years of service to the Fund.
The maximum annual benefit per trustee under the plan is $2,500.
3. INVESTMENT TRANSACTIONS
During the period, the cost of purchases and proceeds from sales of investments,
excluding short-term investments and U.S. Government securities, were
$24,455,367 and $29,434,999, respectively. The cost of purchases and proceeds
from sales of long-term U.S. Government securities, including paydowns on
mortgage-backed securities, for the period were $105,936,525 and $98,606,556,
respectively.
4. 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.
All of the Fund's portfolio holdings, including derivative instruments, are
marked to market each day with the change in value reflected in 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 these instances, 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.
23
VAN KAMPEN BOND FUND
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2006 (UNAUDITED) continued
Summarized below are specific types of derivative financial instruments used
by the Fund.
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
Fund generally invests in exchange traded futures contracts on U.S. Treasury
securities for duration and risk management purposes and typically closes the
contract prior to the delivery date. Upon entering into futures contracts, the
Fund 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 December 31, 2006
were as follows:
CONTRACTS
Outstanding at June 30, 2006................................ 409
Futures Opened.............................................. 1,481
Futures Closed.............................................. (1,432)
------
Outstanding at December 31, 2006............................ 458
======
B. CREDIT DEFAULT SWAPS The Fund may enter into credit default swap contracts
for hedging purposes or to gain exposure to a credit in which the Fund may
otherwise invest. A credit default swap is an agreement between two parties to
exchange the credit risk of an issuer. A buyer of a credit default swap is said
to buy protection by paying periodic fees in return for a contingent payment
from the seller if the issuer has a credit event such as bankruptcy, a failure
to pay outstanding obligations or deteriorating credit while the swap is
outstanding. A seller of a credit default swap, is said to sell protection and
thus collects the periodic fees and profits if the credit of the issuer remains
stable or improves while the swap is outstanding but the seller in a credit
default swap contract would be required to pay an agreed-upon amount, which
approximates the notional amount of the swap, as disclosed in the table
following the Portfolio of Investments, to the buyer in the event of an adverse
credit event of the issuer. The Fund accrues for the periodic fees on swap
contracts on a daily basis with the net amount accrued recorded within
unrealized appreciation/depreciation of swap contracts. Upon cash settlement of
the periodic fees, the net amount is recorded as realized gain/loss on swap
contracts on the Statements of Operations. Net unrealized gains are recorded as
an asset or net unrealized losses are reported as a liability on the Statement
of Assets and Liabilities. The change in value of the swaps is reported as
unrealized gains or losses in the Statement of Operations.
Credit default swaps may involve greater risks than if a Fund had invested
in the issuer directly. Credit default swaps are subject to general market risk,
counterparty risk and credit risk. If there is a default by the counterparty,
the Fund will have contractual remedies pursuant to the agreements related to
the transaction.
24
VAN KAMPEN BOND FUND
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2006 (UNAUDITED) continued
5. INDEMNIFICATIONS
The Fund enters into contracts that contain a variety of indemnifications. The
Fund's maximum exposure under these arrangements is unknown. However, the Fund
has not had prior claims or losses pursuant to these contracts and expects the
risk of loss to be remote.
6. 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 fund NAV calculations as late as the fund's last NAV calculation in the
first required financial statement period. As a result, the Fund will
incorporate FIN 48 in its semi annual report on December 31, 2007. The impact to
the Fund'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 Fund's financial statement disclosures.
25
VAN KAMPEN BOND FUND
DIVIDEND REINVESTMENT PLAN
The dividend reinvestment plan offers you a prompt and simple way to
reinvest your dividends and capital gains distributions into additional shares
of your fund. Under the plan, the money you earn from dividends and capital
gains distributions will be reinvested automatically in more shares of your
fund, allowing you to potentially increase your investment over time.
PLAN BENEFITS
- ADD TO YOUR ACCOUNT
You may increase your shares in your fund easily and automatically with the
dividend reinvestment plan.
- LOW TRANSACTION COSTS
Shareholders who participate in the plan are able to buy shares at below-
market prices when the fund is trading at a premium to its net asset value. In
addition, transaction costs are low because when new shares are issued by the
fund, there is no brokerage fee, and when shares are bought in blocks on the
open market, the brokerage commission is shared among all participants.
- CONVENIENCE
You will receive a detailed account statement from Computershare Trust
Company, N.A., which administers the plan, whenever shares are reinvested for
you. The statement shows your total distributions, date of investment, shares
acquired, and price per share, as well as the total number of shares in your
reinvestment account.
- SAFEKEEPING
Computershare Trust Company, N.A. will hold the shares it has acquired for
you in safekeeping, which provides added protection against loss, theft, or
inadvertent destruction of certificates. However, you may request that a
certificate representing your reinvested shares be issued to you.
HOW DOES THE PLAN WORK?
If you choose to participate in the plan, your dividends and capital gains
distributions will be promptly reinvested for you, automatically increasing your
shares. If your fund is trading at a share price that is equal to its net asset
value (NAV), you'll pay that amount for your reinvested shares. However, if your
fund is trading above or below its NAV, the price is determined by one of two
ways:
1. PREMIUM If your fund is trading at a premium--a market price that is
higher than its NAV--you'll pay either the NAV or 95 percent of the market
price, whichever is greater. When your fund trades at a premium, you'll pay
less for your reinvested shares than an ordinary investor purchasing shares
on the stock exchange. Keep in mind, a portion of your price reduction may be
taxable because you are receiving shares at less than market price.
2. DISCOUNT If your fund is trading at a discount--a market price that is
lower than its NAV--you'll pay the market price for your reinvested shares.
26
VAN KAMPEN BOND FUND
DIVIDEND REINVESTMENT PLAN continued
HOW TO PARTICIPATE IN THE PLAN
If you own shares in your own name, you can participate directly in the
plan. If your shares are held in "street name"--in the name of your brokerage
firm, bank, or other financial institution--you must instruct that entity to
participate on your behalf. If they are unable to participate on your behalf,
you may request that they reregister your shares in your own name so that you
may enroll in the plan.
If you choose to participate in the plan, whenever your fund declares a
dividend or capital gains distribution, it will be invested in additional shares
of your fund that are purchased on the open market.
HOW TO ENROLL
To enroll in the Dividend Reinvestment Plan please visit vankampen.com or
call (800) 341-2929 or notify us in writing at the address below.
Van Kampen Closed-End Funds
Computershare Trust Company, N.A.
P.O. Box 43011
Providence, RI 02940-3011
Please include your Fund name and account number and ensure that all
shareholders listed on the account sign these written instructions. Your
participation in the plan will begin with the next dividend or capital gains
distribution payable after Computershare Trust Company, N.A. receives your
authorization, as long as they receive it before the "record date," which is
generally ten business days before the dividend is paid. If your authorization
arrives after such record date, your participation in the plan will begin with
the following dividend or distribution.
COSTS OF THE PLAN
There is no direct charge to you for reinvesting dividends and capital gains
distributions because the plan's fees are paid by your fund. If your fund is
trading at or above its NAV, your new shares are issued directly by the fund and
there are no brokerage charges or commissions. However, if your fund is trading
at a discount, the shares are purchased on the open market, and you will pay
your portion of any brokerage commissions. These brokerage commissions are
typically less than the standard brokerage charges for individual transactions
because shares are purchased for all participants in blocks, resulting in lower
commissions for each individual participant. Any brokerage commissions or
service fees are averaged into the purchase price.
27
VAN KAMPEN BOND FUND
DIVIDEND REINVESTMENT PLAN continued
TAX IMPLICATIONS
The automatic reinvestment of dividends and capital gains distributions does
not relieve you of any income tax that may be due on dividends or distributions.
You will receive tax information annually to help you prepare your federal and
state income tax returns.
HOW TO WITHDRAW FROM THE PLAN
To withdraw from the Dividend Reinvestment Plan please visit vankampen.com
or call (800) 341-2929 or notify us in writing at the address below.
Van Kampen Closed-End Funds
Computershare Trust Company, N.A.
P.O. Box 43011
Providence, RI 02940-3011
All shareholders listed on the account must sign any written withdrawal
instructions. If you withdraw, you have two choices for receiving your shares:
- CERTIFICATE
We will issue a certificate for the full shares and send you a check for any
fractional shares without a charge.
- CHECK
We will sell all full and fractional shares and send the proceeds to your
address of record after deducting brokerage commissions and a $2.50 service fee.
The Fund and Computershare Trust Company, N.A. may amend or terminate the
plan. Participants will receive written notice at least 30 days before the
effective date of any amendment. In the case of termination, participants will
receive written notice at least 30 days before the record date for the payment
of any dividend or capital gains distribution by your fund.
TO OBTAIN A COMPLETE COPY OF THE DIVIDEND REINVESTMENT PLAN, PLEASE CALL OUR
CLIENT RELATIONS DEPARTMENT AT 800-341-2929 OR VISIT VANKAMPEN.COM.
28
VAN KAMPEN BOND FUND
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 FUND COMPANY
One Lincoln Street
Boston, Massachusetts 02111
TRANSFER AGENT
COMPUTERSHARE FUND 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 Fund, as defined in the Investment Company Act
of 1940, as amended.
29
Van Kampen Bond Fund
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 Bond Fund
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 Bond Fund
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, 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.
VBFSAR 2/07
(VAN KAMPEN INVESTMENTS LOGO) RN07-00534P-Y12/06
Item 2. Code of Ethics.
Not applicable for semi-annual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable for semi-annual reports.
Item 6. Schedule of Investments.
Please refer to Item #1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable for semi-annual reports.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable for semi-annual reports.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. Controls and Procedures
(a) The Fund's principal executive officer and principal financial officer have
concluded that the Fund's disclosure controls and procedures are sufficient to
ensure that information required to be disclosed by the Fund 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 Bond Fund
By: /s/ Ronald E. Robison
---------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: February 8, 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: February 8, 2007
By: /s/ James W. Garrett
--------------------
Name: James W. Garrett
Title: Principal Financial Officer
Date: February 8, 2007