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 811-08743
Van Kampen Senior Income Trust
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(Exact name of registrant as specified in charter)
1221 Avenue of the Americas, New York, New York 10020
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(Address of principal executive offices) (Zip code)
Ronald Robison
1221 Avenue of the Americas, New York, New York 10020
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(Name and address of agent for service)
Registrant's telephone number, including area code: 212-762-4000
Date of fiscal year end: 7/31
Date of reporting period: 1/31/06
Item 1. Reports 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
Senior 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 January 31,
2006.
MARKET FORECASTS PROVIDED IN THIS REPORT MAY NOT NECESSARILY COME TO
PASS. THERE IS NO ASSURANCE THAT THE TRUST WILL ACHIEVE ITS INVESTMENT
OBJECTIVE. THE TRUST IS 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 THE TRUST SHARES MAY THEREFORE BE LESS THAN WHAT YOU
PAID FOR THEM. ACCORDINGLY, YOU CAN LOSE MONEY INVESTING IN THIS TRUST.
PLEASE SEE THE PROSPECTUS FOR MORE COMPLETE INFORMATION ON INVESTMENT
RISKS.
AN INVESTMENT IN SENIOR LOANS IS SUBJECT TO CERTAIN RISKS SUCH AS LOAN
DEFAULTS AND ILLIQUIDITY DUE TO INSUFFICIENT COLLATERAL BACKING.
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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 01/31/06
SENIOR INCOME TRUST
SYMBOL: VVR
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AVERAGE ANNUAL BASED ON BASED ON
TOTAL RETURNS NAV MARKET PRICE
Since Inception (6/24/98) 5.47% 4.60%
5-year 6.52 6.41
1-year 6.77 1.05
6-month 3.45 2.93
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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 AND
PRINCIPAL VALUE WILL FLUCTUATE AND TRUST SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
The 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.
1
Trust Report
FOR THE SIX-MONTH PERIOD ENDED JANUARY 31, 2006
MARKET CONDITIONS
During the six-month period ended January 31, 2006, positive economic and
corporate trends created a favorable backdrop for the senior loan asset class.
The Gulf Coast hurricanes did not dampen the U.S. economy to the extent some had
expected, nor did high oil prices and struggles of the auto industry. Inflation
remained largely contained. By and large, corporations posted good profits,
reflecting on-track business strategies, increasing revenues, strengthening
balance sheets and improving credit quality. Despite some well publicized
exceptions, corporate debt default rates remained low overall. These influences
stoked ongoing demand for senior loans, from institutional and individual
investors alike.
Moreover, the adjustable-rate characteristics of senior loans proved
particularly beneficial during the period. Because the yields of senior loans
adjust in tandem to changes in short-term interest rates, the asset class was
well positioned as interest rates rose across the short- and intermediate-term
portions of the bond market.
The strong demand for senior loans was met by robust supply in both the primary
and secondary markets. Merger-and-acquisition activity, leveraged buyouts
(private-to-public transactions), sponsor-driven dividend loans and second lien
loans were among the activities spurring issuance. In this environment, yield
spreads in the senior loan market held steady.
2
PERFORMANCE ANALYSIS
The trust's return can be calculated based upon either the market price or the
net asset value (NAV) of its shares. NAV per share is determined by dividing the
value of the trust's portfolio securities, cash and other assets, less all
liabilities and preferred shares, by the total number of common shares
outstanding, while market price reflects the supply and demand for the shares.
As a result, the two returns can differ, as they did during the reporting
period. For the six months ended January 31, 2006, the trust returned 2.93
percent on a market price basis and 3.45 percent on an NAV basis.
TOTAL RETURN FOR THE SIX-MONTH PERIOD ENDED JANUARY 31, 2006
------------------------------------------------
BASED ON NAV BASED ON MARKET PRICE
3.45% 2.93%
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Performance data quoted represents past performance, which is no guarantee of
future results, and current performance may be lower or higher than the figures
shown. Investment return, net asset value and common share market price will
fluctuate and trust shares, when sold, may be worth more or less than their
original cost. See Performance Summary for additional performance information.
We believe that the rigor of our approach and our experience in the senior loan
market were principal drivers of the trust's performance for the period. We
managed the trust according to our research-intensive, time-tested approach,
seeking to balance yield with a stable net asset value. Our investment process
focused on identifying companies that we believed had strong management, solid
and predictable cash flows, and sufficient collateral in the event of default.
Consistent with our dedication to risk management, we diversified the portfolio
broadly across the senior loan market. We followed a bottom-up security
selection process, with investment decisions driven principally by our analysis
of individual company fundamentals. That said, the portfolio construction
process also included our comprehensive analysis of larger industry and sector
trends. Notably, the trust's positioning reflected a defensive tilt throughout
the period. Our criteria led us to favor senior loans in sectors that typically
provide stable performance throughout an economic cycle. For example, the trust
includes debt issued by food, drug and beverage companies, cable broadcasters,
and leisure companies. These companies have historically enjoyed steady
day-to-day demand for goods and services. The trust also included holdings in
the defense industry; these issuers were well positioned to benefit from
long-term demand trends, and held extensive hard assets as loan collateral.
In contrast, we avoided companies we believed to be especially susceptible to
cyclical economic downturns or rising fuel prices. We were particularly
circumspect in regard to the highly leveraged auto and airline industries. This
prudence served the trust well during the period. We were extremely cautious
about the health care sector as well, based on concerns that an uncertain
3
regulatory environment and Medicaid reduction initiatives could create ongoing
turbulence for the sector.
The trust benefited during the period from our use of leverage. Leverage
involves borrowing at a short-term lending rate and reinvesting the proceeds at
a higher rate. We used this strategy on an ongoing basis in an effort to enhance
the trust's dividend. Unlike with other fixed-income classes, using leverage in
conjunction with senior loans does not involve the same degree of risk from
rising short-term interest rates, since the income from senior loans adjusts to
changes in interest rates, as do the rates which determine the trust's borrowing
costs. (Similarly, should short-term rates fall, borrowing costs would also
decline.) We might reduce leverage in periods of weaker credit quality
conditions to prevent magnifying erosion of the trust's net asset value.
There is no guarantee that any sectors mentioned will continue to perform well
or that securities in such sectors will be held by the trust in the future.
CHANGES TO INVESTMENT POLICIES
At a meeting held on March 1, 2006, the Board of Trustees approved changes to
certain of the Trust's investment policies in order to expand the investment
options available to the Trust as the Trust seeks to achieve its investment
objective of high level of current income, consistent with preservation of
capital. The Trust's investment policy of investing at least 80% of its total
assets in Senior Loans remains unchanged. The changes to the Trust's investment
policies are as follows:
(1) The Trust may, subject to the limits specified below, invest in
credit-linked deposits. Credit-linked deposits are deposits by lenders, such as
the Trust, to support the issuance of letters of credit to the Senior Loan
borrower. The Trust receives from the bank issuing such letters of credit an
agreed upon rate of return in exchange for its deposit. There are risks
associated with credit-linked deposits, including the credit risk of the bank
which maintains the deposit account as well as the credit risk of the borrower.
The Trust bears the risk of possible loss of its principal investment, in
addition to the periodic interest payments that are expected to be received for
the duration of the Trust's investment in the credit-linked deposit. Thus,
restating the Trust's investment policies to include this new investment: The
Trust may invest up to 20% of its total assets in any combination of (1)
warrants and equity securities, in each case the Trust must own or acquire a
Senior Loan of the same issuer, (2) junior debt securities or securities with a
lien on collateral lower than a senior claim on collateral, (3) high quality
short-term debt securities, (4) credit-linked deposits and (5) Treasury
Inflation Protected Securities ("U.S. TIPS") and other inflation-indexed bonds
issued by the U.S. government, its agencies or instrumentalities.
(2) The Trust's ability to invest in structured products has been increased to
10% of its total assets and expanded to include credit default swaps ("CDS") to
enhance the yield on its portfolio or to increase income available for
4
distributions or for other non-hedging purposes. A CDS is an agreement between
two parties to exchange the credit risk of a particular issuer or reference
entity. In a CDS transaction, a buyer pays periodic fees in return for a payment
by the seller which is contingent upon an adverse credit event occurring in the
underlying issuer or reference entity. The seller collects periodic fees from
the buyer and profits if the credit of the underlying issuer or reference entity
remains stable or improves while the swap is outstanding, but the seller in a
CDS contract would be required to pay an agreed upon amount to the buyer in the
event of an adverse credit event in the reference entity. A buyer of a CDS is
said to buy protection whereas a seller of a CDS is said to sell protection.
When the Trust buys a CDS, it is utilizing the swap for hedging purposes similar
to other hedging strategies described herein. When the Trust sells a CDS, it is
utilizing the swap to enhance the yield on its portfolio to increase income
available for distribution or for other non-hedging purposes, and the Trust is
subject to the 10% limitation described herein on structured products.
5
SUMMARY OF INVESTMENTS BY INDUSTRY CLASSIFICATION AS OF 1/31/2006
Beverage, Food & Tobacco 6.9%
Broadcasting--Cable 6.6
Printing & Publishing 6.2
Entertainment & Leisure 6.1
Hotels, Motels, Inns & Gaming 5.9
Chemicals, Plastics & Rubber 5.7
Healthcare 5.2
Automotive 4.7
Electronics 4.4
Containers, Packaging & Glass 4.0
Buildings & Real Estate 4.0
Ecological 3.0
Medical Products & Services 2.8
Aerospace/Defense 2.7
Finance 2.6
Natural Resources 2.6
Utilities 2.2
Insurance 1.8
Healthcare & Beauty 1.7
Construction Material 1.6
Telecommunications--Local Exchange Carriers 1.6
Personal & Miscellaneous Services 1.5
Pharmaceuticals 1.4
Restaurants & Food Service 1.3
Diversified Manufacturing 1.3
Home & Office Furnishings, Housewares & Durable Consumer
Products 1.2
Telecommunications--Wireless 1.1
Machinery 1.0
Retail--Specialty 1.0
Mining, Steel, Iron & Non-Precious Metals 0.9
Retail--Stores 0.8
Retail--Oil & Gas 0.7
Broadcasting--Radio 0.7
Paper & Forest Products 0.5
Business Equipment 0.4
Transportation--Rail Manufacturing 0.4
Transportation--Cargo 0.4
Farming & Agriculture 0.4
Non-Durable Consumer Products 0.4
Grocery 0.3
Textiles & Leather 0.3
Broadcasting--Diversified 0.2
Broadcasting--Television 0.1
Telecommunications--Long Distance 0.1
Transportation--Personal 0.0
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Total Long Term Investments 98.7%
Short-Term Investments 1.3
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Total Investments 100.0%
6
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. Summary of investments by industry
classification percentages are as a percentage of total 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.
7
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 by filing the schedule
electronically with the Securities and Exchange Commission (SEC). The
semiannual reports are filed on Form N-CSRS and the annual reports are
filed on Form N-CSR. Van Kampen also delivers the semiannual and annual
reports to trust shareholders, and makes these reports available on its
public Web site, www.vankampen.com. In addition to the semiannual and
annual reports that Van Kampen delivers to shareholders and makes
available through the Van Kampen public Web site, each trust files a
complete schedule of portfolio holdings with the SEC for the trust's
first and third fiscal quarters on Form N-Q. Van Kampen does not deliver
the reports for the first and third fiscal quarters to shareholders, nor
are the reports posted to the Van Kampen public Web site. You may,
however, obtain the Form N-Q filings (as well as the Form N-CSR and
N-CSRS filings) by accessing the SEC's Web site, http://www.sec.gov. You
may also review and copy them at the SEC's Public Reference Room in
Washington, DC. Information on the operation of the SEC's Public
Reference Room may be obtained by calling the SEC at (800) SEC-0330. You
can also request copies of these materials, upon payment of a duplicating
fee, by electronic request at the SEC's e-mail address
(publicinfo@sec.gov) or by writing the Public Reference section of the
SEC, Washington, DC 20549-0102.
You may obtain copies of a trust's fiscal quarter filings by contacting
Van Kampen Client Relations at (800)847-2424.
8
PROXY VOTING POLICY AND PROCEDURES AND PROXY VOTING RECORD
You may obtain a copy of the trust's Proxy Voting Policy and Procedures
without charge, upon request, by calling toll free (800) 847-2424 or by
visiting our Web site at www.vankampen.com. It is also available on the
Securities and Exchange Commission's Web site at http://www.sec.gov.
You may obtain information regarding how the trust voted proxies relating
to portfolio securities during the most recent twelve-month period ended
June 30 without charge by visiting our Web site at www.vankampen.com.
This information is also available on the Securities and Exchange
Commission's Web site at http://www.sec.gov.
9
VAN KAMPEN SENIOR INCOME TRUST
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED)
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT -------------- STATED
(000) BORROWER MOODY'S S&P COUPON MATURITY* VALUE
-----------------------------------------------------------------------------------------------
VARIABLE RATE** SENIOR LOAN INTERESTS 176.1%
AEROSPACE/DEFENSE 5.0%
$ 9,643 Alion Science and
Technology Corp., Term
Loan...................... B1 B+ 6.45% 08/02/09 $ 9,643,050
4,050 AM General, LLC, Term Loan 8.87 to
(b)....................... NR NR 10.50 11/01/11 4,184,999
2,940 Anteon International
Corp., Term Loan (b)...... Ba2 BB 6.32 12/31/10 2,967,846
1,506 Apptis, Inc., Term Loan... B2 B+ 7.81 01/05/10 1,516,081
7,565 ARINC, Inc., Term Loan.... Ba3 BB 6.20 03/10/11 7,674,000
4,230 DynCorp International, 6.81 to
LLC, Term Loan............ B2 B+ 7.44 02/11/11 4,274,317
3,000 IAP Worldwide Services,
Inc., Term Loan........... B2 B+ 7.63 12/30/12 3,035,625
3,881 ILC Industries, Inc., Term
Loan...................... NR NR 7.03 02/24/12 3,938,708
10,218 K&F Industries, Inc., Term 6.81 to
Loan...................... B2 B+ 8.25 11/16/12 10,345,693
5,260 SI International, Inc.,
Term Loan................. B1 B+ 5.78 02/09/11 5,302,990
11,427 Spirit AeroSystems, Inc.,
Term Loan................. B1 BB- 6.85 12/31/11 11,595,205
6,874 TransDigm, Inc.,
Term Loan................. B1 B+ 6.58 07/22/10 6,969,403
5,732 Wyle Laboratories, Inc.,
Term Loan................. NR B+ 7.02 01/28/11 5,823,039
--------------
77,270,956
--------------
AUTOMOTIVE 8.5%
9,046 Accuride Corp, Term Loan 6.25 to
(b)....................... B1 B+ 6.75 01/31/12 9,167,359
14,021 Federal-Mogul Corp., Term
Loan (c).................. NR NR 8.31 12/09/06 14,055,961
15,384 Federal-Mogul Corp.,
Revolving Credit Agreement
(c)....................... NR NR 8.31 12/09/06 15,431,585
2,178 Heartland Automotive
Holdings, Inc., Term 7.39 to 01/31/10 to
Loan...................... NR NR 11.39 01/31/12 2,201,302
31,864 Hertz Corp., Term Loan.... Ba2 BB 6.65 12/21/12 32,352,826
10,421 MetoKote Corp., 7.47 to
Term Loan................. B2 B+ 7.67 11/27/11 10,421,250
6,120 Polypore, Inc., Term
Loan...................... B2 B 7.53 11/12/11 6,091,508
10,634 Safelite Glass Corp., Term 8.52 to
Loan...................... NR NR 9.02 09/30/07 10,527,975
3,818 Tenneco Automotive, Inc.,
Term Loan................. B1 B+ 6.63 12/12/10 3,880,590
10 See Notes to Financial Statements
VAN KAMPEN SENIOR INCOME TRUST
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT -------------- STATED
(000) BORROWER MOODY'S S&P COUPON MATURITY* VALUE
-----------------------------------------------------------------------------------------------
AUTOMOTIVE (CONTINUED)
$26,673 TRW Automotive, Inc., Term 6.00 to 10/31/10 to
Loan...................... Ba2 BB+ 6.25% 06/30/12 $ 26,706,771
1,808 United Components, Inc.,
Term Loan................. B1 BB- 6.81 06/30/10 1,836,589
--------------
132,673,716
--------------
BEVERAGE, FOOD & TOBACCO 12.6%
19,500 Acosta Sales Co., Inc., 6.67 to 12/06/12 to
Term Loan................. NR NR 10.17 06/06/13 19,778,438
13,050 Birds Eye Foods, Inc., 7.28 to
Term Loan (b)............. B1 B+ 7.36 06/30/08 13,237,604
1,646 Buffets Holdings, Inc.,
Term Loan................. B1 B- 8.07 06/28/09 1,662,247
13,057 Commonwealth Brands, Inc.,
Term Loan (b)............. NR NR 7.00 12/22/12 13,213,684
6,117 Constellation Brands, 5.75 to
Inc., Term Loan (b)....... Ba2 BB 6.31 11/30/11 6,195,882
5,211 Culligan International
Co., Term Loan (b)........ B1 B+ 6.97 09/30/11 5,284,055
5,387 Doane Pet Care Co., Term 6.62 to
Loan...................... B1 BB- 6.94 10/24/12 5,463,931
7,226 Dole Food Co., Inc., Term 5.63 to
Loan...................... Ba3 BB 7.75 04/18/12 7,265,182
6,900 Dole Holding Co., Term
Loan...................... B3 B 9.44 07/22/10 7,063,875
13,582 DS Waters Enterprises, LP,
Term Loan................. Caa3 CCC 9.03 11/07/09 13,118,322
1,800 Eight O'clock Coffee Co.,
Term Loan................. NR NR 7.69 11/14/11 1,822,500
3,000 Le-Nature's, Inc., Term 7.88 to
Loan...................... B1 B 9.25 06/23/10 3,045,000
6,764 Luigino's, Inc., Term 7.44 to
Loan...................... B1 B+ 7.63 04/02/11 6,823,155
1,751 Mafco Worldwide Corp.,
Term Loan................. B1 B+ 6.50 12/08/11 1,769,513
8,874 Michael Foods, Inc., Term 6.50 to
Loan...................... B1 B+ 6.67 11/21/10 8,997,686
8,196 National Dairy Holdings,
LP, Term Loan............. B1 NR 6.57 03/15/12 8,241,688
3,000 National Distributing,
Co., Inc., Term Loan...... NR NR 11.06 06/22/10 3,007,500
2,506 OSI Foods GMBH & Co. KG,
Term Loan................. NR NR 6.53 09/02/11 2,538,533
5,638 OSI Group, LLC,
Term Loan................. NR NR 6.53 09/02/11 5,711,700
3,132 OSI-Holland Finance B.V.,
Term Loan................. NR NR 6.53 09/02/11 3,173,166
See Notes to Financial Statements 11
VAN KAMPEN SENIOR INCOME TRUST
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT -------------- STATED
(000) BORROWER MOODY'S S&P COUPON MATURITY* VALUE
-----------------------------------------------------------------------------------------------
BEVERAGE, FOOD & TOBACCO (CONTINUED)
$ 4,658 PBM Products, LLC, Term 7.39 to
Loan...................... NR NR 7.56% 07/26/11 $ 4,713,585
7,624 Pierre Foods, Inc., Term
Loan...................... B1 B+ 5.56 06/30/10 7,725,651
29,531 Pinnacle Foods, Inc., Term
Loan...................... B1 B+ 7.78 11/25/10 29,952,009
750 Reddy Ice Group, Inc.,
Term Loan................. B1 B+ 6.32 08/09/12 757,735
8,778 Sturm Foods, Inc., Term 7.25 to 05/26/11 to
Loan...................... NR NR 11.50 05/26/12 8,875,581
2,254 Sunny Delight Beverage 8.36 to
Co., Term Loan............ B2 B 8.63 08/20/10 2,237,504
3,970 Volume Services America, 7.89 to
Inc., Term Loan........... B2 NR 8.50 10/01/10 4,007,219
--------------
195,682,945
--------------
BROADCASTING--CABLE 12.0%
2,400 Adelphia Communications
Corp., Term Loan (b)...... NR NR 6.31 05/31/06 2,412,000
5,306 Cebridge Connections, 7.25 to
Inc., Term Loan........... NR NR 9.25 02/23/09 5,338,659
3,300 Century Cable Holdings,
LLC, Term Loan (c)........ NR NR 9.25 06/30/09 3,219,219
61,118 Charter Communications
Operating, LLC, Term Loan 7.67 to 04/27/10 to
(b)....................... B2 B 7.92 04/07/11 61,579,202
9,593 Frontiervision Operating
Partners, LP, Term Loan 8.65 to 09/30/05 to
(c) (j)................... NR NR 8.78 03/31/06 9,617,482
2,354 Frontiervision Operating
Partners, LP, Revolving
Credit Agreement (c)
(j)....................... NR NR 8.65 10/31/05 2,359,747
13,373 Hilton Head
Communications, LP, Term
Loan (c).................. NR NR 8.50 03/31/08 12,980,412
9,760 Hilton Head
Communications, LP,
Revolving Credit Agreement
(c)....................... NR NR 7.25 09/30/07 9,450,930
9,198 Insight Midwest Holdings,
LLC, Term Loan............ Ba3 BB- 6.56 12/31/09 9,336,330
6.36 to
4,975 MCC Iowa, LLC, Term Loan.. Ba3 BB- 6.64 02/01/14 5,047,207
51,095 Olympus Cable Holdings, 8.50 to 06/30/10 to
LLC, Term Loan (c)........ NR NR 9.25 09/30/10 49,803,858
12 See Notes to Financial Statements
VAN KAMPEN SENIOR INCOME TRUST
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT -------------- STATED
(000) BORROWER MOODY'S S&P COUPON MATURITY* VALUE
-----------------------------------------------------------------------------------------------
BROADCASTING--CABLE (CONTINUED)
$10,871 Parnassos, LP, Term Loan
(c)....................... NR NR 7.25% 06/30/07 $ 10,786,995
4,753 Parnassos, LP, Revolving
Credit Agreement (c)...... NR NR 7.25 06/30/07 4,720,133
--------------
186,652,174
--------------
BROADCASTING--DIVERSIFIED 0.4%
5,985 Entravision Communications
Corp., Term Loan.......... Ba3 B+ 6.03 03/29/13 6,031,132
--------------
BROADCASTING--RADIO 1.2%
5,691 NextMedia Operating, Inc., 6.40 to 11/15/12 to
Term Loan................. B1 B 8.97 11/15/13 5,750,179
8,959 Spanish Broadcasting
Systems, Inc., Term 6.53 to 06/10/12 to
Loan...................... B1 B+ 8.02 06/10/13 9,090,448
3,474 Susquehanna Media Co.,
Term Loan................. Ba2 BB 6.01 03/31/12 3,480,263
--------------
18,320,890
--------------
BROADCASTING--TELEVISION 0.3%
4,179 HIT Entertainment, Inc.,
Term Loan................. B1 B 6.86 03/20/12 4,199,373
--------------
BUILDINGS & REAL ESTATE 7.3%
6,000 AIMCO Properties, LP, Term 6.35 to 11/02/09 to
Loan (b).................. NR NR 6.42 11/09/09 6,089,628
6,667 BioMed Realty, LP, Term
Loan (b).................. NR NR 6.64 05/30/10 6,683,333
15,000 Capital Automotive LP,
Term Loan (b)............. Ba1 NR 6.31 12/16/10 15,061,875
6,120 CB Richard Ellis Services, 6.01 to
Inc., Term Loan (b)....... Ba3 BB- 6.68 03/31/10 6,188,597
318 Central Parking Corp.,
Term Loan................. Ba3 BB- 6.53 03/31/10 321,540
6,000 Edge-Star Partners, Term
Loan...................... NR NR 7.73 11/18/06 5,970,000
15,274 General Growth Properties, 6.22 to 11/12/07 to
LLC, Term Loan............ Ba2 BB+ 6.57 11/12/08 15,312,594
3,518 GEO Group, Inc., 6.53 to
Term Loan................. Ba3 BB- 6.56 09/14/11 3,552,935
3,000 Harlan Sprague Dawley, 7.05 to
Inc., Term Loan........... B2 B+ 8.75 12/19/11 3,035,625
6,000 Landsource Communities
Development, LLC, Term
Loan...................... NR NR 7.00 03/31/10 6,063,750
2,419 Lion Gables Realty, LP, 6.15 to
Term Loan................. Ba2 BB+ 6.17 09/30/06 2,434,295
See Notes to Financial Statements 13
VAN KAMPEN SENIOR INCOME TRUST
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT -------------- STATED
(000) BORROWER MOODY'S S&P COUPON MATURITY* VALUE
-----------------------------------------------------------------------------------------------
BUILDINGS & REAL ESTATE (CONTINUED)
$ 7,500 Macerich Partnership, LP,
Term Loan................. NR NR 5.94% 04/25/10 $ 7,554,690
2,840 NewKirk Master, LP, Term
Loan...................... Ba2 BB+ 6.14 08/11/08 2,864,468
3,600 Shea Capital I, LLC, Term
Loan...................... NR NR 6.26 10/27/11 3,609,000
2,500 Shea Mountain House, LLC,
Term Loan................. NR NR 6.34 05/11/11 2,519,532
4,500 South Edge, LLC, Term 6.38 to 10/31/07 to
Loan...................... NR NR 6.57 10/31/09 4,526,874
12,000 WCI Communities, Inc.,
Term Loan................. NR NR 6.37 12/23/10 12,030,000
9,439 Yellowstone Development,
LLC, Term Loan............ NR NR 6.94 09/30/10 9,493,776
--------------
113,312,512
--------------
BUSINESS EQUIPMENT 0.8%
2,469 ACCO Brands Corp., Term 6.12 to
Loan (b).................. Ba3 BB- 6.35 08/17/12 2,501,461
4,483 Katun Corp., Term Loan.... NR BB- 8.78 06/30/09 4,494,107
5,463 Verifone, Inc., Term
Loan...................... B1 B+ 6.67 06/30/11 5,531,013
--------------
12,526,581
--------------
CHEMICALS, PLASTICS & RUBBER 10.3%
3,900 Basell North America
(Netherlands), Term 6.91 to 09/07/13 to
Loan...................... Ba3 B+ 7.67 09/07/14 3,963,870
1,787 Becker-Underwood, Inc., 8.78 to 09/30/11 to
Term Loan................. NR NR 11.53 03/31/12 1,786,500
18,536 Celanase, AG (Germany),
Term Loan (b)............. B1 B+ 6.53 04/06/11 18,767,351
59,928 Huntsman International,
LLC, Term Loan............ Ba3 BB- 6.23 08/16/12 60,321,026
13,305 INVISTA (Netherlands), 6.07 to 04/30/10 to
Term Loan................. Ba3 BB 6.38 04/29/11 13,466,680
10,881 ISP Chemco, Inc., Term 6.44 to
Loan...................... Ba2 BB 6.50 03/27/11 11,017,202
8,325 Kraton Polymers, LLC, Term 6.63 to
Loan...................... B1 B+ 7.06 12/23/10 8,449,950
6.44 to 11/04/09 to
14,600 Nalco Co., Term Loan...... B1 BB- 6.94 11/04/10 14,801,058
10,223 PQ Corp., Term Loan....... B1 B+ 6.56 02/10/12 10,356,924
17,958 Rockwood Specialties
Group, Inc., Term Loan.... B1 B+ 6.67 07/30/12 18,197,796
--------------
161,128,357
--------------
CONSTRUCTION MATERIAL 2.1%
12,000 AXIA, Inc., Term Loan..... B2 B 7.87 12/21/12 12,030,000
2,537 Brand Services, Inc., Term 7.20 to
Loan (b).................. B2 B 7.53 01/15/12 2,575,842
14 See Notes to Financial Statements
VAN KAMPEN SENIOR INCOME TRUST
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT -------------- STATED
(000) BORROWER MOODY'S S&P COUPON MATURITY* VALUE
-----------------------------------------------------------------------------------------------
CONSTRUCTION MATERIAL (CONTINUED)
$ 1,147 Builders FirstSource, 7.03 to 08/11/11 to
Inc., Term Loan (b)....... B1 BB- 8.59% 02/15/12 $ 1,154,311
1,950 Building Materials Holding
Corp., Term Loan (b)...... NR BB 6.28 06/30/10 1,971,938
5,331 Interline Brands, Inc., 6.24 to
Term Loan................. B1 BB 6.78 12/31/10 5,384,310
599 Panolam Industries
International, Inc.
(Canada), Term Loan....... B1 B+ 7.28 09/30/12 607,478
4,219 Professional Paint, Inc., 7.25 to
Term Loan................. NR NR 7.31 09/30/11 4,250,391
916 Sensus Metering Systems, 6.54 to
Inc., Term Loan........... B2 B+ 7.22 12/17/10 925,869
1,515 Werner Holding Co., Inc.,
Term Loan................. Caa1 B- 8.44 06/11/09 1,511,727
3,272 Werner Holding Co., Inc.,
Term Loan (g)............. Caa2 CCC 12.94 12/11/09 2,862,634
--------------
33,274,500
--------------
CONTAINERS, PACKAGING & GLASS 7.3%
4,577 Berry Plastics Corp., Term
Loan (b).................. B1 B+ 6.45 12/02/11 4,642,794
2,645 BWAY Corp., Term Loan
(b)....................... B1 B+ 6.56 06/30/11 2,683,647
1,773 Consolidated Container
Co., LLC, Term Loan....... B2 B- 7.50 12/15/08 1,789,622
1,800 Crown Americas, Inc., Term
Loan (b).................. Ba2 BB- 6.00 11/15/12 1,814,063
22,858 Dr. Pepper/Seven Up
Bottling Group, Inc., Term 6.45 to
Loan...................... B1 NR 6.49 12/19/10 23,203,292
5,655 Graham Packaging Co., Term 6.75 to 10/07/11 to
Loan...................... B2 B 8.81 04/07/12 5,733,910
13,817 Graphic Packaging
International Corp., Term 6.72 to
Loan...................... B1 B+ 7.19 08/08/10 14,045,943
1,108 Graphic Packaging
International Corp.,
Revolving Credit 7.39 to
Agreement................. B1 B+ 9.25 08/08/09 1,075,846
4,276 Impress Metal Packaging
Holding B.V.
(Netherlands), Term
Loan...................... NR B+ 7.94 12/31/06 4,297,283
7,001 Kranson Industries, Inc.,
Term Loan................. NR NR 7.28 07/30/11 7,097,730
15,791 Owens-Illinois, Inc., Term 6.18 to 04/01/07 to
Loan...................... B1 BB- 6.35 04/01/08 15,888,800
See Notes to Financial Statements 15
VAN KAMPEN SENIOR INCOME TRUST
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT -------------- STATED
(000) BORROWER MOODY'S S&P COUPON MATURITY* VALUE
-----------------------------------------------------------------------------------------------
CONTAINERS, PACKAGING & GLASS (CONTINUED)
$ 8,113 Packaging Dynamics, Term 6.53 to 09/29/08 to
Loan...................... NR NR 6.78% 09/29/09 $ 8,132,125
4,200 Ranpak Corp., Term Loan... NR NR 7.06 12/14/11 4,234,125
8,960 Smurfit-Stone Container 6.69 to
Corp., Term Loan.......... Ba3 B+ 6.81 11/01/11 9,058,081
2,697 Smurfit-Stone Container
Corp., Revolving Credit 6.94 to
Agreement................. Ba3 B+ 8.75 11/01/09 2,650,294
998 Solo Cup, Inc., Term 6.98 to
Loan...................... B2 B+ 7.03 02/27/11 1,007,942
5,895 U.S. Can Corp., Term
Loan...................... B3 B 8.31 01/15/10 5,953,950
1,030 Unifrax Corp., Term
Loan...................... B1 B+ 6.88 03/29/12 1,047,034
--------------
114,356,481
--------------
DIVERSIFIED MANUFACTURING 2.3%
4,958 Chart Industries, Inc., 6.38 to
Term Loan................. B1 B+ 6.63 10/17/12 5,020,313
12,066 Euramax International, 7.24 to 06/29/12 to
Inc., Term Loan........... Caa1 B- 11.54 06/29/13 11,700,664
18,554 Mueller Group, Inc., Term 6.47 to
Loan...................... B2 B+ 6.92 10/03/12 18,797,015
--------------
35,517,992
--------------
ECOLOGICAL 5.4%
34,062 Allied Waste North
America, Inc., Term Loan 6.09 to
(b)....................... B1 BB 6.73 01/15/12 34,365,091
5,752 Duratek, Inc., Term 7.81 to
Loan...................... B1 BB- 7.94 12/16/09 5,780,499
8,916 Envirocare of Utah, LLC, 7.38 to
Term Loan................. NR NR 10.13 04/13/10 9,108,431
4,076 Environmental Systems
Products Holdings, Term 7.97 to 12/12/08 to
Loan...................... Caa1 NR 14.67 12/12/10 4,154,732
4,355 Great Lakes Dredge & Dock 7.77 to
Corp., Term Loan.......... B3 CCC 8.24 12/22/10 4,420,746
3,900 LVI Services, Inc., Term 7.13 to
Loan...................... NR NR 7.34 11/16/11 3,939,000
1,489 Safety-Kleen Corp., Term 11.33 to
Loan...................... NR NR 11.56 09/15/08 1,527,830
5,486 Synagro Technologies,
Inc., Term Loan........... B2 BB- 6.86 06/21/12 5,513,143
914 Synagro Technologies,
Inc., Term Loan........... B2 BB- 6.75 06/21/12 916,571
6,234 Waste Services, Inc., Term 7.28 to
Loan...................... B2 B- 7.74 03/31/11 6,301,526
16 See Notes to Financial Statements
VAN KAMPEN SENIOR INCOME TRUST
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT -------------- STATED
(000) BORROWER MOODY'S S&P COUPON MATURITY* VALUE
-----------------------------------------------------------------------------------------------
ECOLOGICAL (CONTINUED)
$ 1,800 WasteQuip, Inc.,
Term Loan................. B3 B- 10.53% 07/15/12 $ 1,831,500
5,459 WCA Waste Systems, Inc.,
Term Loan................. B2 B 7.53 04/28/11 5,472,397
--------------
83,331,466
--------------
ELECTRONICS 8.0%
8,443 AMI Semiconductor, Inc.,
Term Loan (b)............. Ba3 BB- 6.06 04/01/12 8,498,791
5,318 Amkor Technology, Inc.,
Term Loan (b)............. B2 B- 8.88 10/27/10 5,512,631
4,213 Audio Visual Services
Corp., Term Loan.......... B1 NR 7.28 05/18/11 4,254,625
4,178 Automata, Inc., Term Loan 02/28/03 to
(a) (c) (i)............... NR NR N/A 02/28/04 0
3,741 DoubleClick, Inc., Term
Loan...................... B2 B 8.34 07/13/12 3,796,734
847 Eastman Kodak Co., Term 6.61 to
Loan...................... Ba3 B+ 6.85 10/18/12 852,830
17,190 ON Semiconductor Corp.,
Term Loan................. B3 B+ 7.30 12/15/11 17,380,798
15,712 Spectrum Brands, Inc., 6.17 to
Term Loan................. B1 B+ 6.85 02/06/12 15,878,620
45,273 Sungard Data Systems,
Inc., Term Loan........... B1 B+ 6.81 02/11/13 45,791,232
9,578 UGS Corp., Term Loan...... B1 B+ 6.55 03/31/12 9,709,976
5,346 Viasystems, Inc., Term
Loan...................... B2 NR 8.83 09/30/09 5,406,142
2,340 Viasystems, Inc.,
Revolving Credit
Agreement................. B2 NR 10.75 01/31/08 2,292,893
5,000 Xerox Corp., Term Loan.... NR BB- 6.22 09/30/08 5,048,125
--------------
124,423,397
--------------
ENTERTAINMENT & LEISURE 11.0%
2,726 24 Hour Fitness Worldwide, 7.54 to
Inc., Term Loan (b)....... B2 B 7.70 06/08/12 2,765,001
2,977 Alliance Atlantis
Communications, Inc., Term
Loan...................... Ba2 BB 6.07 12/20/11 3,005,414
498 Blockbuster, Inc., Term 8.04 to
Loan...................... B3 B- 8.73 08/20/11 483,197
2,398 Detroit Red Wings, Inc.,
Term Loan................. NR NR 6.78 08/30/06 2,409,772
9,289 Fender Musical Instruments
Corp., Term Loan.......... B3 B- 8.72 09/30/12 9,335,068
3,948 Festival Fun Parks, LLC, 8.78 to 06/30/07 to
Term Loan................. NR NR 9.28 12/31/07 3,930,717
See Notes to Financial Statements 17
VAN KAMPEN SENIOR INCOME TRUST
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT -------------- STATED
(000) BORROWER MOODY'S S&P COUPON MATURITY* VALUE
-----------------------------------------------------------------------------------------------
ENTERTAINMENT & LEISURE (CONTINUED)
$50,000 Metro-Goldwyn-Mayer
Studios, Inc., Term
Loan...................... NR NR 6.78% 04/08/12 $ 50,573,850
538 Metro-Goldwyn-Mayer
Studios, Inc., Revolving
Credit Agreement.......... NR NR 7.07 04/08/10 522,308
5,000 Mets, LP, Term Loan....... NR NR 6.39 07/25/10 5,056,250
540 Movie Gallery, Inc., Term
Loan...................... B2 B- 8.03 04/27/10 516,038
6,918 Panavision, Inc., Term
Loan...................... B3 CCC 10.76 01/12/07 7,004,868
7,667 Pure Fishing, Inc., Term 7.53 to 09/30/10 to
Loan...................... B1 B+ 10.43 03/31/11 7,723,543
27,065 Regal Cinemas, Inc., Term
Loan...................... Ba2 BB- 6.53 11/10/10 27,407,091
600 SFX Entertainment, Inc.,
Term Loan................. B1 B+ 6.76 06/21/13 600,938
7,628 Six Flags Theme Parks, 6.80 to
Inc., Term Loan........... B1 B- 7.05 06/30/09 7,726,335
1,246 Six Flags Theme Parks,
Inc., Revolving Credit 6.64 to
Agreement................. B1 B- 6.81 06/30/08 1,229,785
6,000 Southwest Sports Group,
LLC, Term Loan............ NR NR 7.06 12/22/10 6,075,000
4,200 Tiger Ballpark, LLC, Term
Loan...................... NR NR 6.19 08/15/10 4,210,500
9,116 True Temper Sports, Inc., 7.45 to
Term Loan................. B2 B 9.25 03/15/11 9,207,088
5,940 Universal City Development 6.37 to
Partners, LP, Term Loan... Ba3 BB- 6.60 06/09/11 6,015,486
10,268 WMG Acquisition Corp., 6.37 to
Term Loan................. Ba2 B+ 6.61 02/28/11 10,378,272
3,017 Yankees Holdings, LP, Term
Loan...................... NR NR 6.85 06/25/07 3,032,228
1,960 Yonkers Racing Corp., Term 8.01 to
Loan...................... NR NR 8.04 08/12/11 1,982,353
--------------
171,191,102
--------------
FARMING & AGRICULTURE 0.7%
10,500 Wm. Bolthouse Farms, Inc., 6.94 to 12/16/12 to
Term Loan................. B2 B- 9.98 12/16/13 10,687,809
--------------
FINANCE 4.7%
12,000 Ameritrade Holding Corp.,
Term Loan (b)............. Ba1 BB 6.04 12/31/12 12,076,500
3,650 DCS Business Services, 10.00 to
Inc., Term Loan........... NR NR 10.25 02/04/11 3,659,125
18 See Notes to Financial Statements
VAN KAMPEN SENIOR INCOME TRUST
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT -------------- STATED
(000) BORROWER MOODY'S S&P COUPON MATURITY* VALUE
-----------------------------------------------------------------------------------------------
FINANCE (CONTINUED)
$19,800 Fidelity National
Information Solutions,
Inc., Term Loan........... Ba3 BB 6.19% 03/09/13 $ 19,938,600
6,000 LPL Holdings, Inc., Term
Loan...................... B2 B 7.82 06/28/13 5,970,000
9,101 Outsourcing Solutions,
Inc., Term Loan........... NR B- 9.07 09/30/10 9,055,836
6,941 Rent-A-Center, Inc., Term 5.76 to
Loan...................... Ba2 BB+ 6.41 06/30/10 7,021,100
4,200 The Nasdaq Stock Market, 6.00 to
Inc., Term Loan........... Ba2 BBB- 6.19 12/08/11 4,242,874
10,609 Transfirst Holdings, Inc., 7.56 to 03/31/10 to
Term Loan................. NR NR 12.06 03/31/11 10,671,654
--------------
72,635,689
--------------
GROCERY 0.6%
9,000 Roundy's Supermarkets, 7.42 to
Inc., Term Loan........... B2 B+ 7.49 11/03/11 8,977,500
--------------
HEALTHCARE 9.4%
5,400 AMN Healthcare Services,
Inc., Term Loan (b)....... Ba2 BB- 6.53 11/02/11 5,457,375
9,600 Capella Healthcare, Inc., 7.45 to 11/30/12 to
Term Loan................. B3 B 10.45 11/30/13 9,663,998
8,025 Center for Diagnostic
Imaging (CDI), Term
Loan...................... B2 B+ 8.03 12/31/10 7,904,539
35,981 Community Health Systems,
Inc., Term Loan (b)....... Ba3 BB- 6.16 08/19/11 36,494,102
7,781 Concentra Operating Corp., 6.53 to
Term Loan (b)............. B1 B+ 6.69 09/30/11 7,885,864
993 Diagnostic Imaging Group,
LLC, Term Loan............ B2 B+ 7.81 05/04/12 987,538
11,019 FHC Health Systems, Inc., 10.41 to 12/18/09 to
Term Loan................. B2 B 13.41 02/09/11 11,244,171
1,090 Genoa Healthcare Group, 7.73 to
LLC, Term Loan............ B2 B 9.50 08/10/12 1,099,418
2,317 Healthronics, Inc., Term
Loan...................... Ba3 BB- 6.38 03/23/11 2,325,350
43,457 LifePoint Hospitals, Inc.,
Term Loan................. Ba3 BB 6.19 04/15/12 43,770,708
2,236 Multiplan, Inc., Term
Loan...................... Ba3 B+ 7.03 03/04/09 2,264,062
2,400 Radiation Therapy
Services, Inc., Term 6.53 to
Loan...................... B1 BB 7.75 12/16/12 2,416,500
10,798 Select Medical Corp., Term 6.12 to
Loan...................... B1 BB- 8.00 02/24/12 10,707,700
See Notes to Financial Statements 19
VAN KAMPEN SENIOR INCOME TRUST
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT -------------- STATED
(000) BORROWER MOODY'S S&P COUPON MATURITY* VALUE
-----------------------------------------------------------------------------------------------
HEALTHCARE (CONTINUED)
$ 800 Select Medical Corp.,
Revolving Credit 6.76 to
Agreement................. B1 BB- 9.00% 02/24/11 $ 796,000
3,559 Sterigenics International,
Inc., Term Loan........... B2 B+ 7.50 06/14/11 3,607,546
--------------
146,624,871
--------------
HEALTHCARE & BEAUTY 2.7%
10,109 American Safety Razor Co., 7.15 to 02/28/12 to
Term Loan (b)............. B2 B 10.31 08/28/12 10,260,973
3,648 CEI Holdings, Inc., Term 7.44 to 12/03/10 to
Loan...................... NR NR 11.19 12/03/11 3,459,012
4,639 Marietta Intermediate
Holding Corp., Term 7.28 to 12/17/10 to
Loan...................... NR NR 11.85 12/17/11 4,687,182
9,877 MD Beauty, Inc., Term 7.67 to 02/18/12 to
Loan...................... B1 CCC 9.25 02/18/13 9,929,393
14,235 Prestige Brands Holdings, 6.31 to
Inc., Term Loan........... B1 B+ 8.50 04/06/11 14,377,334
--------------
42,713,894
--------------
HOME & OFFICE FURNISHINGS, HOUSEWARES & DURABLE
CONSUMER PRODUCTS 2.2%
9.39 to
6,035 Formica Corp., Term Loan.. NR NR 9.51 06/10/10 6,064,910
3,825 Hunter Fan Co., Term 6.94 to
Loan...................... B1 B 7.17 03/24/12 3,815,438
1,380 Imperial Home Decor Group,
Inc., Term Loan (a) (d)
(i)....................... NR NR N/A 04/04/06 34,490
11,100 National Bedding Co., Term 9.50 to
Loan...................... B3 B+ 9.60 08/31/12 11,113,875
2,835 Quality Home Brands 7.13 to
Holdings, LLC, Term Loan.. NR NR 7.28 11/04/11 2,852,322
7,022 Sealy Mattress Co., Term 6.12 to
Loan...................... B1 B+ 6.23 04/06/12 7,107,565
250 Sealy Mattress Co.,
Revolving Credit
Agreement................. B1 B+ 7.75 04/06/10 245,000
2,363 World Kitchen, Inc., Term
Loan...................... B3 NR 7.75 03/31/08 2,342,040
--------------
33,575,640
--------------
HOTELS, MOTELS, INNS & GAMING 10.8%
1,425 Alliance Gaming Corp.,
Term Loan (b)............. B1 B+ 8.18 09/04/09 1,427,124
4,875 Boyd Gaming Corp., Term 5.70 to
Loan (b).................. Ba2 BB 6.03 06/30/11 4,931,113
1,802 CCM Merger, Corp., Term 6.39 to
Loan (b).................. B1 B+ 6.52 07/19/12 1,814,799
20 See Notes to Financial Statements
VAN KAMPEN SENIOR INCOME TRUST
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT -------------- STATED
(000) BORROWER MOODY'S S&P COUPON MATURITY* VALUE
-----------------------------------------------------------------------------------------------
HOTELS, MOTELS, INNS & GAMING (CONTINUED)
$ 2,631 Global Cash Access, LLC,
Term Loan................. Ba3 B+ 6.82% 03/10/10 $ 2,666,325
8,400 Greektown Casino, LLC,
Term Loan................. B1 B 7.07 12/03/12 8,515,500
4,913 Green Valley Ranch Gaming,
LLC, Term Loan............ NR NR 6.53 12/17/11 4,977,356
4,169 Herbst Gaming, Inc., Term 6.20 to
Loan...................... B1 B+ 6.53 01/31/11 4,224,516
5,103 Interstate Operating Co.,
LP, Term Loan............. B2 B 9.06 01/14/08 5,179,619
3,955 Isle of Capri Casinos, 6.16 to
Inc., Term Loan........... Ba2 BB- 6.47 02/04/11 3,991,181
7,654 Kuilima Resort Co., Term 7.32 to 09/30/10 to
Loan...................... NR NR 11.07 09/30/11 7,730,373
7,339 MGM Mirage, Term Loan..... Ba2 BB 6.28 04/25/10 7,357,179
15,902 MGM Mirage, Revolving 5.87 to
Credit Agreement.......... Ba2 BB 6.28 04/25/10 15,444,609
600 Pinnacle Entertainment,
Term Loan................. B1 BB- 6.49 12/15/11 605,875
113 Planet Hollywood
International, Inc., Term
Loan (g).................. B3 B- 8.53 08/31/10 111,590
44,375 Planet Hollywood
International, Inc., Term
Loan...................... B3 B- 7.53 08/31/10 43,792,894
4,811 Resorts International
Hotel & Casino, Inc., Term
Loan...................... B3 CCC 12.03 04/26/13 4,358,380
6,831 Scientific Games Corp.,
Term Loan................. Ba2 BB 6.32 12/23/09 6,922,078
20,200 Venetian Casino Resorts,
LLC, Term Loan............ Ba3 BB- 6.28 06/15/11 20,400,424
344 Venetian Casino Resorts,
LLC, Revolving Credit
Agreement................. Ba3 BB- 6.27 02/22/10 336,694
22,338 Wynn Las Vegas, LLC, Term
Loan...................... B2 B+ 6.69 12/14/11 22,597,173
--------------
167,384,802
--------------
INSURANCE 3.2%
4,194 American Wholesale
Insurance Group, Inc., 5.50 to 10/27/11 to
Term Loan................. NR B 11.99 04/27/12 4,204,485
7,200 Arg Holdings, LLC, Term 7.22 to 11/30/11 to
Loan...................... B2 NR 11.47 11/30/12 7,293,000
4,913 Bristol West Holdings,
Inc., Term Loan........... Ba1 BB+ 6.28 02/18/11 4,937,062
See Notes to Financial Statements 21
VAN KAMPEN SENIOR INCOME TRUST
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT -------------- STATED
(000) BORROWER MOODY'S S&P COUPON MATURITY* VALUE
-----------------------------------------------------------------------------------------------
INSURANCE (CONTINUED)
$ 2,867 CCC Information Services
Group, Inc., Term Loan.... B1 B+ 7.31% 08/20/10 $ 2,873,857
7,789 Conseco, Inc., Term Loan
(b)....................... B2 BB- 6.47 06/22/10 7,857,543
9,122 Hilb, Rogal & Hamilton 6.31 to 12/15/09 to
Co., Term Loan............ Ba3 BB 6.81 12/15/11 9,213,369
1,717 Mitchell International,
Inc., Term Loan........... B1 B+ 6.53 08/15/11 1,742,670
11,762 USI Holdings Corp., Term
Loan...................... B1 BB- 7.07 08/11/08 11,813,288
--------------
49,935,274
--------------
MACHINERY 1.8%
7,248 Alliance Laundry Holdings,
LLC, Term Loan (b)........ B1 B 6.73 01/27/12 7,352,251
3,573 Douglas Dynamics, LLC,
Term Loan................. B1 BB- 6.28 12/16/10 3,599,805
2,838 Flowserve Corp., Term 6.19 to
Loan...................... Ba3 BB- 6.50 08/10/12 2,876,803
6,050 Goodman Global Holdings,
Inc., Term Loan........... B2 B+ 6.94 12/23/11 6,144,096
6,000 Penhall International 11.17 to
Corp., Term Loan.......... NR NR 11.21 11/01/10 6,060,000
2,456 United Rentals (North
America), Inc., Term
Loan...................... B2 BB- 6.79 02/14/11 2,486,953
--------------
28,519,908
--------------
MEDICAL PRODUCTS & SERVICES 4.3%
2,400 Accellent, Inc., Term Loan
(b)....................... B2 BB- 6.39 11/22/12 2,421,000
5,346 American Medical
Instruments Holdings,
Inc., Term Loan........... B2 B+ 7.57 12/09/10 5,399,460
402 Colgate Medical, Ltd.
(England), Term Loan...... Ba2 BB- 6.60 12/30/08 404,536
4,804 CONMED Corp., Term Loan
(b)....................... Ba3 BB- 6.76 12/15/09 4,862,331
46,257 DaVita, Inc., Term Loan 6.54 to
(b)....................... B1 BB- 6.94 10/05/12 46,971,667
3,356 Kinetics Concepts, Inc.,
Term Loan................. Ba3 BB 6.28 08/11/10 3,396,274
3,204 VWR International, Inc.,
Term Loan................. B2 B+ 7.12 04/07/11 3,254,727
--------------
66,709,995
--------------
22 See Notes to Financial Statements
VAN KAMPEN SENIOR INCOME TRUST
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT -------------- STATED
(000) BORROWER MOODY'S S&P COUPON MATURITY* VALUE
-----------------------------------------------------------------------------------------------
MINING, STEEL, IRON & NON-PRECIOUS METALS 1.7%
$ 6,000 Gibraltar Industries,
Inc., Term Loan........... Ba1 BB 6.28% 12/08/12 $ 6,045,000
5,102 New Enterprise Stone &
Lime Co., Inc., Term 6.89 to
Loan...................... NR NR 8.50 07/30/10 5,140,458
13,097 Novelis, Inc., Term
Loan...................... Ba2 BB- 6.01 01/06/12 13,266,960
2,281 Techs Industries, Inc.,
Term Loan................. NR NR 7.57 01/14/10 2,284,102
--------------
26,736,520
--------------
NATURAL RESOURCES 4.7%
599 Cheniere LNG Holdings,
LLC, Term Loan (b)........ NR BB 6.95 08/30/12 604,298
21,118 El Paso Corp., Term
Loan...................... B3 B 7.31 11/23/09 21,286,169
2,566 Foundation PA Coal Co., 6.28 to
Term Loan................. Ba3 BB- 6.44 07/30/11 2,612,642
2,400 Key Energy Services Group, 7.02 to
Inc., Term Loan........... NR NR 7.52 06/30/12 2,437,001
8,018 LYONDELL-CITGO Refining,
LP, Term Loan............. NR NR 6.53 05/21/07 8,098,079
6.74 to
2,566 SemCrude, LP, Term Loan... Ba2 NR 6.78 03/16/11 2,598,876
28,592 Targa Resources, Inc., 6.66 to 10/31/07 to
Term Loan................. Ba3 B+ 6.92 10/31/12 28,742,595
6,120 Universal Compression,
Inc., Term Loan........... Ba2 BB 6.03 02/15/12 6,192,997
--------------
72,572,657
--------------
NON-DURABLE CONSUMER PRODUCTS 0.6%
2,400 Amscan Holdings, Inc.,
Term Loan (b)............. B1 B+ 7.51 12/23/12 2,377,001
5,827 JohnsonDiversey, Inc., 6.76 to
Term Loan................. B1 B+ 7.64 12/16/11 5,887,022
1,791 Mega Bloks, Inc. (Canada),
Term Loan................. Ba3 BB- 6.44 07/27/10 1,815,626
--------------
10,079,649
--------------
PAPER & FOREST PRODUCTS 0.7%
995 NewPage Corp., Term Loan.. B1 B 7.56 05/02/11 1,007,438
4,231 White Birch Paper Co.
(Canada), Term Loan....... B2 B+ 7.82 04/06/12 4,288,701
5,970 Xerium Technologies, Inc.,
Term Loan................. B1 B+ 6.53 05/18/12 5,973,731
--------------
11,269,870
--------------
See Notes to Financial Statements 23
VAN KAMPEN SENIOR INCOME TRUST
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT -------------- STATED
(000) BORROWER MOODY'S S&P COUPON MATURITY* VALUE
-----------------------------------------------------------------------------------------------
PERSONAL & MISCELLANEOUS SERVICES 2.7%
$ 5,819 Affinion Group., Inc., 7.10 to
Term Loan (b)............. B1 B+ 7.23% 10/17/12 $ 5,789,512
1,841 Alderwoods Group, Inc., 6.06 to
Term Loan (b)............. B1 BB- 6.73 09/29/09 1,863,719
4,116 Coinmach Laundry Corp., 7.00 to
Term Loan (b)............. B2 B 7.06 12/19/12 4,180,955
3,642 Global Imaging Systems, 5.83 to
Inc., Term Loan........... Ba2 NR 6.03 05/10/10 3,668,864
1,625 InfoUSA, Inc., Term
Loan...................... Ba3 BB 8.75 03/25/09 1,629,062
11,084 Iron Mountain, Inc., Term 6.19 to
Loan...................... B2 BB- 6.22 04/02/11 11,179,312
1,906 Omniflight Helicopters, 7.74 to 09/30/11 to
Inc., Term Loan........... NR NR 8.24 09/30/12 1,910,956
6,906 Stewart Enterprises, Inc., 5.77 to
Term Loan................. Ba3 BB 6.25 11/19/11 6,979,277
4,200 Weight Watchers.com, Term 6.72 to 12/16/10 to
Loan...................... B1 B- 9.49 06/16/11 4,250,250
--------------
41,451,907
--------------
PHARMACEUTICALS 2.6%
3,510 Bradley Pharmaceuticals,
Inc., Term Loan........... NR NR 8.35 11/14/10 3,518,775
10,824 MedPointe, Inc., Term 9.06 to 09/30/07 to
Loan...................... B2 B 9.81 09/30/08 10,823,651
26,043 Warner Chilcott Holding 7.01 to
Co., Term Loan............ B2 B 7.44 01/18/12 26,177,167
--------------
40,519,593
--------------
PRINTING & PUBLISHING 11.2%
11,199 Adams Outdoor Advertising,
LP, Term Loan (b)......... B1 B+ 6.62 10/18/12 11,367,327
2,866 ALM Media Holdings, Inc.,
Term Loan................. B3 B- 7.07 03/05/10 2,867,395
7,943 American Reprographics 6.26 to
Co., Term Loan (b)........ Ba3 BB- 8.00 06/18/09 8,031,945
1,777 Ascend Media Holdings, 7.02 to
LLC, Term Loan............ NR NR 7.28 01/31/12 1,780,278
2,985 Canon Communications, LLC,
Term Loan................. B3 B 8.28 05/31/11 2,985,000
9,875 Cygnus Business Media,
Inc., Term Loan........... B3 CCC 9.10 07/13/09 9,825,625
14,963 Day International Group, 7.03 to 12/05/12 to
Inc., Term Loan........... B1 B 11.78 12/05/13 15,135,511
2,799 Dex Media East, LLC, Term 6.05 to
Loan...................... Ba2 BB 6.36 05/08/09 2,826,014
15,021 Dex Media West, LLC, Term 6.05 to
Loan...................... Ba2 BB 6.38 03/09/10 15,168,632
24 See Notes to Financial Statements
VAN KAMPEN SENIOR INCOME TRUST
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT -------------- STATED
(000) BORROWER MOODY'S S&P COUPON MATURITY* VALUE
-----------------------------------------------------------------------------------------------
PRINTING & PUBLISHING (CONTINUED)
$ 4,950 Endurance Business Media,
Inc., Term Loan........... B1 B 6.74% 03/08/12 $ 4,996,406
1,800 Enterprise NewsMedia, LLC,
Term Loan................. NR NR 7.53 06/30/12 1,822,500
2,130 FSC Acquisition, LLC, Term 6.33 to
Loan...................... B2 B 6.69 08/01/12 2,141,139
9,033 Haights Cross
Communications, LLC, Term 7.84 to
Loan...................... B3 B- 8.84 08/20/08 9,134,852
6,301 Herald Media, Inc., Term 7.28 to 07/22/11 to
Loan...................... NR NR 10.28 01/22/12 6,356,143
9,967 Liberty Group Operating, 6.69 to
Inc., Term Loan........... B1 B+ 8.25 02/28/12 10,063,992
3,560 MC Communications, LLC,
Term Loan................. NR NR 6.54 12/31/10 3,586,923
2,097 MediaNews Group, Inc.,
Term Loan................. NR NR 5.81 12/30/10 2,103,024
9,756 Merrill Communications,
LLC, Term Loan............ B1 B+ 6.81 12/22/12 9,879,472
2,850 Network Communications, 6.97 to
Inc., Term Loan........... Ba3 B+ 7.28 11/30/12 2,877,611
13,083 New Publications, Inc., 6.55 to
Term Loan................. NR NR 11.35 08/05/12 12,783,268
10,200 Primedia, Inc., Term
Loan...................... NR B 6.65 09/30/13 10,101,825
370 Primedia, Inc., Revolving 6.94 to
Credit Agreement.......... NR NR 7.00 06/30/08 355,910
23,241 R.H. Donnelley, Inc., Term 5.95 to 12/31/09 to
Loan...................... Ba3 BB 6.53 06/30/11 23,423,375
2,846 Source Media, Inc., Term
Loan...................... B1 NR 6.85 11/08/11 2,883,694
2,220 Southern Graphic Systems, 6.90 to
Inc., Term Loan........... B1 B+ 7.21 12/30/11 2,247,750
--------------
174,745,611
--------------
RESTAURANTS & FOOD SERVICE 2.4%
5,970 Arby's, LLC, Term Loan 6.66 to
(b)....................... B1 B+ 6.92 07/25/12 6,015,306
12,239 Burger King Corp., Term
Loan (b).................. Ba2 B+ 6.31 06/30/12 12,383,832
4,073 Captain D's, LLC, Term 8.31 to 12/27/10 to
Loan...................... NR NR 10.56 06/27/11 4,106,663
6,949 Carrols Corp., Term Loan
(b)....................... B1 B+ 7.00 12/31/10 7,053,297
4,776 Denny's Corp., Term 7.30 to 09/30/09 to
Loan...................... B3 CCC 9.85 09/30/10 4,896,048
See Notes to Financial Statements 25
VAN KAMPEN SENIOR INCOME TRUST
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT -------------- STATED
(000) BORROWER MOODY'S S&P COUPON MATURITY* VALUE
-----------------------------------------------------------------------------------------------
RESTAURANTS & FOOD SERVICE (CONTINUED)
$ 600 El Pollo Loco, Inc., Term 7.39 to
Loan...................... B3 B+ 7.56% 11/18/11 $ 606,938
2,888 Landry's Restaurants, 5.95 to
Inc., Term Loan........... Ba2 BB- 6.28 12/28/10 2,919,207
--------------
37,981,291
--------------
RETAIL--OIL & GAS 1.2%
8,700 The Pantry, Inc., Term
Loan...................... Ba3 BB- 6.14 01/02/12 8,806,036
10,500 Travelcenters of America, 6.16 to
Inc., Term Loan........... B1 BB 6.44 12/01/11 10,622,062
--------------
19,428,098
--------------
RETAIL--SPECIALTY 1.8%
14,791 Nebraska Book Co., Inc.,
Term Loan................. B2 B 6.70 03/04/11 14,855,779
12,651 Visant Holding Corp., Term
Loan...................... B1 B+ 6.78 10/04/11 12,835,715
--------------
27,691,494
--------------
RETAIL--STORES 1.4%
3,677 Advance Stores Co., Inc., 5.94 to
Term Loan (b)............. Ba1 BB+ 6.06 09/30/10 3,718,535
18,513 Neiman Marcus Group, Inc.,
Term Loan................. B1 B+ 6.95 04/06/13 18,737,828
--------------
22,456,363
--------------
TELECOMMUNICATIONS--LOCAL EXCHANGE CARRIERS 2.6%
5,387 Cincinnati Bell, Inc., 5.89 to
Term Loan (b)............. Ba3 B+ 6.06 08/31/12 5,431,106
9,800 Fairpoint Communications,
Inc., Term Loan........... B1 BB- 6.31 02/18/12 9,834,300
3,500 Hawaiian Telcom, Inc., 04/30/12 to
Term Loan................. B1 B 6.78 10/31/12 3,533,908
2,400 Madison River Capital,
LLC, Term Loan............ B1 B+ 6.80 07/29/12 2,424,751
1,712 Orius Corp., LLC, Term 01/23/09 to
Loan (a)(c) (i)........... NR NR 11.75 01/23/10 434,709
618 Orius Corp., LLC,
Revolving Credit Agreement
(a)(c) (i)................ NR NR 6.80 01/31/06 553,362
7.74 to 06/30/07 to
13,425 Qwest Corp., Term Loan.... Ba3 BB 9.22 06/15/13 13,763,393
1,200 Sorenson Communication,
Inc., Term Loan........... NR NR 7.49 11/15/12 1,218,000
2,900 Valor Telecommunications, 5.81 to
LLC, Term Loan............ Ba3 BB- 6.32 02/14/12 2,913,366
--------------
40,106,895
--------------
26 See Notes to Financial Statements
VAN KAMPEN SENIOR INCOME TRUST
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT -------------- STATED
(000) BORROWER MOODY'S S&P COUPON MATURITY* VALUE
-----------------------------------------------------------------------------------------------
TELECOMMUNICATIONS--LONG DISTANCE 0.2%
$ 3,600 Time Warner Telecom, Inc., 6.92 to
Term Loan................. B1 B 7.11% 11/30/10 $ 3,661,499
--------------
TELECOMMUNICATIONS--WIRELESS 1.4%
2,200 AAT Communications Corp.,
Term Loan................. B2 BB+ 7.16 07/29/13 2,227,958
3,558 Cellular South, Inc., Term 6.27 to
Loan (b).................. NR NR 7.75 05/04/11 3,602,414
11,917 Centennial Cellular, Inc., 6.45 to
Term Loan (b)............. B1 B 6.83 02/09/11 12,092,104
4,000 Nextel Partners, Inc.,
Term Loan................. Ba1 BBB- 5.91 05/31/12 4,013,332
--------------
21,935,808
--------------
TEXTILES & LEATHER 0.5%
1,995 Malden Mills Industries,
Inc., Term Loan (a)....... NR NR 9.00 10/01/08 628,841
7,569 The William Carter Co., 5.81 to
Term Loan................. B1 BB 6.54 07/14/12 7,656,863
--------------
8,285,704
--------------
TRANSPORTATION--CARGO 0.7%
2,733 Jacobson Acquisition Co., 7.31 to 04/07/09 to
Term Loan................. NR NR 8.56 04/07/11 2,740,167
1,200 Kenan Advantage Group,
Inc., Term Loan........... NR NR 7.50 12/16/11 1,212,000
2,758 Pacer International, Inc., 6.25 to
Term Loan................. Ba3 BB 7.75 06/10/10 2,778,459
2,942 Quality Distribution, 7.51 to
Inc., Term Loan........... Caa1 B- 7.57 11/13/09 2,957,125
1,080 Quality Distribution,
Inc., Revolving Credit
Agreement................. Caa1 B- 9.75 11/13/08 1,080,000
--------------
10,767,751
--------------
TRANSPORTATION--PERSONAL 0.1%
934 Neoplan USA Corp.,
Revolving Credit Agreement
(d) (i)................... NR NR 8.54 06/30/06 933,750
--------------
TRANSPORTATION--RAIL MANUFACTURING 0.8%
12,143 Helm Holding, Corp., Term 6.80 to 07/08/11 to
Loan...................... NR NR 10.80 07/08/12 12,358,848
--------------
UTILITIES 3.9%
14,461 Allegheny Energy, Inc., 5.51 to
Term Loan................. Ba2 BBB- 6.35 03/08/11 14,605,649
4,057 Coleto Creek WLE, LP, Term
Loan (b).................. Ba3 BB 6.53 06/30/11 4,098,674
See Notes to Financial Statements 27
VAN KAMPEN SENIOR INCOME TRUST
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
BANK LOAN
PRINCIPAL RATINGS+
AMOUNT -------------- STATED
(000) BORROWER MOODY'S S&P COUPON MATURITY* VALUE
-----------------------------------------------------------------------------------------------
UTILITIES (CONTINUED)
$ 600 La Paloma Generating Co.,
LLC, Term Loan............ B2 B 8.03% 08/16/13 $ 609,563
1,939 Midwest Generation, LLC, 6.28 to
Term Loan................. Ba3 BB- 6.50 04/27/11 1,964,395
6,000 Mirant North America, LLC,
Term Loan................. Ba3 BB- 8.00 01/03/13 6,045,000
4,816 Pike Electric, Inc., Term 07/01/12 to
Loan...................... NR NR 6.25 12/10/12 4,876,676
6,300 Primary Energy Operations,
LLC, Term Loan............ NR NR 7.16 08/24/09 6,373,502
13,166 Reliant Energy Resources
Corp., Term Loan.......... B1 B+ 6.09 04/30/10 13,156,340
3,529 Reliant Energy Resources
Corp., Revolving Credit 7.31 to
Agreement................. B1 B+ 7.44 12/22/09 3,361,765
6,138 Thermal North America,
Inc., Term Loan........... Ba3 BB- 6.28 10/12/13 6,187,418
--------------
61,278,982
--------------
TOTAL VARIABLE RATE** SENIOR LOAN INTERESTS 176.1%........................... 2,741,921,246
--------------
DESCRIPTION VALUE
-----------------------------------------------------------------------------------------------
NOTES 3.0%
Boise Cascade LLC, ($3,700,000 par, 7.48% coupon, maturing 10/15/12) (h)...... $ 3,616,750
Builders FirstSource, Inc. ($8,700,000 par, 8.04% coupon, maturing 02/15/12)
(h)......................................................................... 8,939,250
Compression Polymers Corp. ($2,700,000 par, 11.44% coupon, maturing 07/01/12)
(h)......................................................................... 2,713,500
Del Laboratories, Inc. ($5,400,000 par, 9.68% coupon, maturing 11/01/11)
(h)......................................................................... 5,535,000
Insight Health Services Corp. ($12,000,000 par, 9.93% coupon, maturing
11/01/11) (h)............................................................... 11,220,000
Qwest Corp. ($3,500,000 par, 7.74% coupon, maturing 06/15/13) (h)............. 3,793,125
Rogers Wireless Communications, Inc. ($9,000,000 par, 7.62% coupon, maturing
12/15/10) (Canada) (h)...................................................... 9,326,250
US Unwired, Inc. ($1,200,000 par, 8.74% coupon, maturing 06/15/10) (h)........ 1,242,000
--------------
TOTAL NOTES................................................................... 46,385,875
--------------
EQUITIES 0.0%
Aladdin Gaming Holdings, LLC (7.84% Ownership Interest, Acquired 09/30/04,
Cost $470,400) (e) (f)...................................................... 41,921
Comdisco Holding Co., Inc. (134 common shares) (e)............................ 2,013
Environmental Systems Products Holdings, Inc. (3,275 common shares, Acquired
06/22/04, Cost $0) (e) (f).................................................. 112,038
IDT Corp. (22,898 common shares) (e).......................................... 282,790
28 See Notes to Financial Statements
VAN KAMPEN SENIOR INCOME TRUST
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
DESCRIPTION VALUE
-----------------------------------------------------------------------------------------------
EQUITIES (CONTINUED)
Imperial Home Decor Group, Inc. (512,023 common shares, Acquisition date
04/26/01, Cost $522,263) (d) (e) (f) (i).................................... $ 0
London Clubs International (Warrants for 141,982 common shares, Acquired
10/15/04, Cost $260,912) (e) (f)............................................ 349,200
Malden Mills Industries (263,436 common shares, Acquired 10/29/03, Cost $0)
(e) (f)..................................................................... 0
Malden Mills Industries (860,902 preferred shares, Acquired 10/29/03, Cost $0)
(e) (f)..................................................................... 0
Neoplan USA Corp. (2,262 preferred shares, Acquired 09/04/03, Cost $1,074,521)
(d) (e) (f) (i)............................................................. 0
Neoplan USA Corp. (8,517 common shares, Acquired 09/04/03, Cost $85) (d) (e)
(f) (i)..................................................................... 0
Orius Corp. (315,080 common shares, Acquired 02/03/03, Cost $0) (c) (e) (f)... 0
Planet Hollywood International, Inc. (Warrants for 89,674 common shares,
Acquired 09/03/04 & 07/22/05, Cost $0) (e) (f).............................. 0
Railworks Corp. (Warrants for 865 common shares, Acquired 02/10/03, Cost $0)
(e) (f)..................................................................... 0
Rotech Medical Corp. (48,485 common shares, Acquired 06/12/02, Cost $193,940)
(e) (f)..................................................................... 0
Safelite Glass Corp. (421,447 common shares, Acquired 10/20/00, Cost
$1,714,995) (e) (f)......................................................... 0
Safelite Realty (28,448 common shares, Acquired 10/26/00, Cost $0) (e) (f).... 0
Targus Group International (Warrants for 28,689 common shares, Acquired
01/30/04, Cost $0) (e) (f).................................................. 57,378
--------------
TOTAL EQUITIES 0.0%.......................................................... 845,340
--------------
TOTAL LONG-TERM INVESTMENTS 179.1%
(Cost $2,785,839,039)....................................................... 2,789,152,461
--------------
SHORT-TERM INVESTMENTS 2.4%
REPURCHASE AGREEMENT 1.2%
State Street Bank & Trust Corp. ($18,500,000 par collateralized by U.S.
Government obligations in a pooled cash account, interest rate of 4.39%,
dated 01/31/06, to be sold on 02/01/06 at $18,502,256) (b).................. 18,500,000
See Notes to Financial Statements 29
VAN KAMPEN SENIOR INCOME TRUST
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
DESCRIPTION VALUE
-----------------------------------------------------------------------------------------------
TIME DEPOSIT 1.2%
State Street Bank & Trust Corp. ($18,865,459 par, 3.40% coupon, dated
01/31/06, to be sold on 02/01/06 at $18,867,241) (b)........................ $ 18,865,459
--------------
TOTAL SHORT-TERM INVESTMENTS 2.4%
(Cost $37,365,459).......................................................... 37,365,459
--------------
TOTAL INVESTMENTS 181.5%
(Cost $2,823,204,498)....................................................... 2,826,517,920
BORROWING (36.5%)............................................................ (569,000,000)
PREFERRED SHARES (INCLUDING ACCRUED DISTRIBUTIONS) (45.0%)................... (700,341,778)
LIABILITIES IN EXCESS OF OTHER ASSETS (0.0%)................................. (216,931)
--------------
NET ASSETS APPLICABLE TO COMMON SHARES 100.0%................................ $1,556,959,211
==============
NR--Not rated
+ Bank Loans rated below Baa by Moody's Investor Service, Inc. or BBB by
Standard & Poor's Group are considered to be below investment grade.
Industry percentages are calculated as a percentage of net assets applicable
to common shares.
(a) This Senior Loan interest is non-income producing.
(b) A portion of this security is segregated in connection with unfunded
commitments.
(c) This borrower has filed for protection in federal bankruptcy court.
(d) Affiliated company. See Notes to Financial Statements.
(e) Non-income producing security as this stock or warrant currently does not
declare dividends.
(f) Restricted Security. Securities were acquired through the restructuring of
senior loans. These securities are restricted as they are not allowed to be
deposited via the Depository Trust Company. If at a later point in time, the
company wishes to register, the issuer will bear the costs associated with
registration. The aggregate value of restricted securities represents 0.04%
of the net assets applicable to common shares of the Trust.
(g) Payment-in-kind security.
(h) Variable rate security. Interest rate shown is that in effect at January 31,
2006.
(i) This borrower is currently in liquidation.
(j) The borrower is in the process of restructuring or amending the terms of
this loan.
* Senior Loans in the Trust's portfolio generally are subject to mandatory
and/or optional prepayment. Because of these mandatory prepayment conditions
and because there may be significant economic incentives for a Borrower to
prepay, prepayments of Senior Loans in the Trust's portfolio may occur. As a
result, the actual remaining maturity of Senior Loans held in the Trust's
portfolio may be
30 See Notes to Financial Statements
VAN KAMPEN SENIOR INCOME TRUST
PORTFOLIO OF INVESTMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
substantially less than the stated maturities shown. Although the Trust is
unable to accurately estimate the actual remaining maturity of individual
Senior Loans, the Trust estimates that the actual average maturity of the
Senior Loans held in its portfolio will be approximately 18-24 months.
** Senior Loans in which the Trust invests generally pay interest at rates
which are periodically redetermined by reference to a base lending rate plus
a premium. These base lending rates are generally (i) the lending rate
offered by one or more major European banks, such as the London Inter-Bank
Offered Rate ("LIBOR"), (ii) the prime rate offered by one or more major
United States banks and (iii) the certificate of deposit rate. Senior Loans
are generally considered to be restricted in that the Trust ordinarily is
contractually obligated to receive approval from the Agent Bank and/or
Borrower prior to the disposition of a Senior Loan.
See Notes to Financial Statements 31
VAN KAMPEN SENIOR INCOME TRUST
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
January 31, 2006 (Unaudited)
ASSETS:
Investments in Unaffiliated Securities (Cost
$2,819,346,404)........................................... $2,825,549,680
Investments in Affiliated Securities (Cost $3,858,094)...... 968,240
--------------
Total Investments (Cost $2,823,204,498)................. 2,826,517,920
Cash........................................................ 26,136,810
Receivables:
Investments Sold.......................................... 28,925,102
Interest and Fees......................................... 18,296,170
Other....................................................... 154,068
--------------
Total Assets............................................ 2,900,030,070
--------------
LIABILITIES:
Payables:
Borrowings................................................ 569,000,000
Investments Purchased..................................... 65,078,924
Investment Advisory Fee................................... 2,038,027
Administrative Fee........................................ 479,536
Income Distributions--Common Shares....................... 140,681
Distributor and Other Affiliates.......................... 136,324
Unfunded Commitments........................................ 2,504,560
Accrued Interest Expense.................................... 2,149,063
Accrued Expenses............................................ 718,541
Trustees' Deferred Compensation and Retirement Plans........ 483,425
--------------
Total Liabilities....................................... 642,729,081
Preferred Shares (including accrued distributions).......... 700,341,778
--------------
Net Assets Applicable to Common Shares...................... $1,556,959,211
==============
NET ASSET VALUE PER COMMON SHARE ($1,556,959,211 divided by
180,010,000 shares outstanding)........................... $ 8.65
==============
NET ASSETS CONSIST OF:
Common Shares ($.01 par value with an unlimited number of
shares authorized, 180,010,000 shares issued and
outstanding).............................................. $ 1,800,100
Paid in Surplus............................................. 1,788,748,292
Accumulated Undistributed Net Investment Income............. 3,113,802
Net Unrealized Appreciation................................. 808,862
Accumulated Net Realized Loss............................... (237,511,845)
--------------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $1,556,959,211
==============
PREFERRED SHARES ($.01 par value, authorized 28,000 shares,
28,000 issued with liquidation preference of $25,000 per
share).................................................... $ 700,000,000
--------------
NET ASSETS INCLUDING PREFERRED SHARES....................... $2,256,959,211
==============
32 See Notes to Financial Statements
VAN KAMPEN SENIOR INCOME TRUST
FINANCIAL STATEMENTS continued
Statement of Operations
For the Six Months Ended January 31, 2006 (Unaudited)
INVESTMENT INCOME:
Interest from Unaffiliated Securities....................... $ 93,984,237
Interest from Affiliated Securities......................... 39,205
Other....................................................... 1,939,325
------------
Total Income............................................ 95,962,767
------------
EXPENSES:
Investment Advisory Fee..................................... 12,088,795
Administrative Fee.......................................... 2,844,423
Credit Line................................................. 1,146,020
Preferred Share Maintenance................................. 918,324
Custody..................................................... 336,831
Legal....................................................... 297,773
Trustees' Fees and Related Expenses......................... 59,229
Other....................................................... 443,102
------------
Total Operating Expenses................................ 18,134,497
------------
Interest Expense........................................ 11,368,550
------------
NET INVESTMENT INCOME....................................... $ 66,459,720
============
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Loss........................................... $ (8,679,132)
------------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... (5,150,495)
------------
End of the Period:
Investments............................................. 3,313,422
Unfunded Commitments.................................... (2,504,560)
------------
808,862
------------
Net Unrealized Appreciation During the Period............... 5,959,357
------------
NET REALIZED AND UNREALIZED LOSS............................ $ (2,719,775)
============
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS..................... $(13,605,258)
============
NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM
OPERATIONS................................................ $ 50,134,687
============
See Notes to Financial Statements 33
VAN KAMPEN SENIOR INCOME TRUST
FINANCIAL STATEMENTS continued
Statements of Changes in Net Assets (Unaudited)
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
JANUARY 31, 2006 JULY 31, 2005
----------------------------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income.................................. $ 66,459,720 $ 107,008,212
Net Realized Loss...................................... (8,679,132) (228,737)
Net Unrealized Appreciation During the Period.......... 5,959,357 2,818,009
Distributions to Preferred Shareholders:
Net Investment Income................................ (13,605,258) (17,534,408)
-------------- --------------
Change in Net Assets Applicable to Common Shares from
Operations........................................... 50,134,687 92,063,076
Distributions to Common Shareholders:
Net Investment Income................................ (53,876,978) (85,468,577)
-------------- --------------
NET CHANGE IN NET ASSETS APPLICABLE TO COMMON SHARES
FROM INVESTMENT ACTIVITIES........................... (3,742,291) 6,594,499
FROM CAPITAL TRANSACTIONS:
Cost of Shares Repurchased............................. -0- (1,764)
-------------- --------------
TOTAL INCREASE/DECREASE IN NET ASSETS APPLICABLE TO
COMMON SHARES........................................ (3,742,291) 6,592,735
NET ASSETS APPLICABLE TO COMMON SHARES:
Beginning of the Period................................ 1,560,701,502 1,554,108,767
-------------- --------------
End of the Period (Including accumulated undistributed
net investment income of $3,113,802 and $4,136,318,
respectively)........................................ $1,556,959,211 $1,560,701,502
============== ==============
34 See Notes to Financial Statements
VAN KAMPEN SENIOR INCOME TRUST
FINANCIAL STATEMENTS continued
Statement of Cash Flows
For the Six Months Ended January 31, 2006 (Unaudited)
CHANGE IN NET ASSETS FROM OPERATIONS........................ $ 50,134,687
------------
Adjustments to Reconcile the Change in Net Assets from
Operations to Net Cash provided by Operating Activities:
Decrease in Investments at Value.......................... 11,638,517
Increase in Interest and Fees Receivables................. (4,690,812)
Increase in Receivable for Investments Sold............... (14,278,812)
Decrease in Other Assets.................................. 18,221
Increase in Investment Advisory Fee Payable............... 52,414
Increase in Administrative Fee Payable.................... 12,333
Decrease in Distributor and Affiliates Payable............ (18,384)
Decrease in Payable for Investments Purchased............. (8,908,783)
Change in Unfunded Commitments............................ 204,858
Change in Accrued Interest Expense........................ 748,442
Increase in Accrued Expenses.............................. 148
Increase in Trustees' Deferred Compensation and Retirement
Plans................................................... 39,663
------------
Total Adjustments....................................... (15,182,195)
------------
NET CASH PROVIDED BY OPERATING ACTIVITIES................... 34,952,492
------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in Bank Borrowings................................... 45,000,000
Cash Dividends Paid......................................... (53,815,691)
------------
Net Cash Used for Financing Activities.................. (8,815,691)
------------
NET INCREASE IN CASH........................................ 26,136,801
Cash at Beginning of the Period............................. 9
------------
CASH AT THE END OF THE PERIOD............................... $ 26,136,810
============
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash Paid During the Year for Interest...................... $ 10,620,108
============
See Notes to Financial Statements 35
VAN KAMPEN SENIOR 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
JANUARY 31, --------
2006 2005
---------------------------
NET ASSET VALUE, BEGINNING OF THE PERIOD (a)................ $ 8.67 $ 8.63
-------- --------
Net Investment Income..................................... .38 .60
Net Realized and Unrealized Gain/Loss..................... (.02) .01
Common Share Equivalent of Distributions Paid to Preferred
Shareholders:
Net Investment Income................................... (.08) (.10)
-------- --------
Total from Investment Operations............................ .28 .51
-------- --------
Distributions Paid to Common Shareholders:
Net Investment Income..................................... (.30) (.47)
Net Realized Gain......................................... -0- -0-
Dilutive impact from the offering of Money Market Cumulative
Preferred Shares.......................................... -0- -0-
-------- --------
NET ASSET VALUE, END OF THE PERIOD.......................... $ 8.65 $ 8.67
======== ========
Common Share Market Price at End of the Period.............. $ 8.12 $ 8.19
Total Return (a)............................................ 2.93%* -2.03%
Net Assets Applicable to Common Shares at End of the Period
(In millions)............................................. $1,557.0 $1,560.7
Ratios to Average Net Assets applicable to Common Shares
excluding Borrowings:
Operating Expense (e)..................................... 2.31% 2.26%
Interest Expense (e)...................................... 1.45% .82%
Gross Expense (e)......................................... 3.76% 3.08%
Net Investment Income (e)................................. 8.45% 6.87%
Net Investment Income (f)................................. 6.72% 5.75%
Portfolio Turnover (b)...................................... 38%* 94%
SUPPLEMENTAL RATIOS:
Ratios to Average Net Assets including Preferred Shares and
Borrowings:
Operating Expense (e)..................................... 1.28% 1.27%
Interest Expense (e)...................................... .80% .46%
Gross Expense (e)......................................... 2.08% 1.73%
Net Investment Income (e)................................. 4.67% 3.86%
Net Investment Income (f)................................. 3.72% 3.23%
SENIOR INDEBTEDNESS:
Total Preferred Shares Outstanding...................... 28,000 28,000
Asset Coverage Per Preferred Share (g).................. $ 80,618 $ 80,750
Involuntary Liquidating Preference Per Preferred
Share................................................. $ 25,000 $ 25,000
Average Market Value Per Preferred Share................ $ 25,000 $ 25,000
Total Borrowing Outstanding (In thousands).............. $569,000 $524,000
Asset Coverage Per $1,000 Unit of Senior Indebtedness
(c)................................................... 4,967 5,315
* Non-Annualized
(a)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
Trust's dividend reinvestment plan, and sale of all shares at the closing
common share market price at the end of the period indicated.
(b)Calculation includes the proceeds from principal repayments and sales of
senior loan interests.
(c)Calculated by subtracting the Trust's total liabilities (not including the
Borrowings) from the Trust's total assets and dividing by the total number of
senior indebtedness units, where one unit equals $1,000 of senior
indebtedness.
(d)As required, effective August 1, 2001, the Trust has adopted the provisions
of the AICPA Audit and Accounting Guide for Investment Companies and began
amortizing premium on fixed income securities. The effect of this change for
the year ended July 31, 2002 was to decrease the ratio of net investment
income to average net assets applicable to common shares by .01%. Net
investment income per share and net realized and unrealized gains and losses
per share were unaffected by the adjustments. Per share, ratios and
supplemental data for the periods prior to July 31, 2002 have not been
restated to reflect this change in presentation.
(e)Ratios do not reflect the effect of distributions to preferred shareholders.
(f)Ratios reflect the effect of distributions to preferred shareholders.
(g)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
36
VAN KAMPEN SENIOR INCOME TRUST
FINANCIAL HIGHLIGHTS (UNAUDITED) continued
YEAR ENDED JULY 31,
----------------------------------------------
2004 2003 2002 (d) 2001
----------------------------------------------
$ 8.10 $ 7.94 $ 8.51 $ 9.65
-------- -------- -------- --------
.42 .46 .49 .79
.57 .14 (.55) (1.10)
(.02) -0- -0- -0-
-------- -------- -------- --------
.97 .60 (.06) (.31)
-------- -------- -------- --------
(.40) (.44) (.51) (.83)
-0- -0- -0- -0-
(.04) -0- -0- -0-
-------- -------- -------- --------
$ 8.63 $ 8.10 $ 7.94 $ 8.51
======== ======== ======== ========
$ 8.84 $ 7.84 $ 6.67 $ 7.79
18.13% 25.06% -8.05% -1.42%
$1,554.1 $1,458.6 $1,430.0 $1,532.7
1.91% 1.59% 1.48% 1.63%
.31% .62% .53% 2.15%
2.22% 2.21% 2.01% 3.78%
5.06% 5.98% 6.02% 8.90%
4.80% N/A N/A N/A
84% 78% 65% 55%
1.30% 1.19% 1.22% 1.20%
.21% .46% .44% 1.58%
1.51% 1.65% 1.66% 2.78%
3.44% 4.47% 4.95% 6.55%
3.26% N/A N/A N/A
28,000 N/A N/A N/A
$ 80,509 N/A N/A N/A
$ 25,000 N/A N/A N/A
$ 25,000 N/A N/A N/A
$450,000 $401,000 $370,159 $375,000
6,009 4,637 4,863 5,087
See Notes to Financial Statements 37
VAN KAMPEN SENIOR INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- JANUARY 31, 2006 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen Senior Income Trust (the "Trust") is registered as a non-diversified,
closed-end management investment company under the Investment Company Act of
1940 (the "1940 Act"), as amended. The Trust's investment objective is to seek
to provide a high level of current income, consistent with preservation of
capital. The Trust seeks to achieve its objective by investing primarily in a
portfolio of interests in floating or variable rate senior loans to
corporations, partnerships and other entities which operate in a variety of
industries and geographical regions. The Trust borrows money for investment
purposes which will create the opportunity for enhanced return, but also should
be considered a speculative technique and may increase the Trust's volatility.
The Trust commenced investment operations on June 24, 1998.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
A. SECURITY VALUATION The Trust's Senior Loans are valued by the Trust following
valuation guidelines established and periodically reviewed by the Trust's Board
of Trustees. Under the valuation guidelines, Senior Loans for which reliable
market quotes are readily available are valued at the mean of such bid and ask
quotes. Where reliable market quotes are not readily available, Senior Loans are
valued, where possible, using independent market indicators provided by
independent pricing sources approved by the Board of Trustees. Other Senior
Loans are valued by independent pricing sources approved by the Board of
Trustees based upon pricing models developed, maintained and operated by those
pricing sources or valued by Van Kampen Asset Management (the "Adviser") by
considering a number of factors including consideration of market indicators,
transactions in instruments which the Adviser believes may be comparable
(including comparable credit quality, interest rate, interest rate
redetermination period and maturity), the credit worthiness of the Borrower, the
current interest rate, the period until next interest rate redetermination and
the maturity of such Senior Loan. Consideration of comparable instruments may
include commercial paper, negotiable certificates of deposit and short-term
variable rate securities which have adjustment periods comparable to the Senior
Loans in the Trust's portfolio. The fair value of Senior Loans are reviewed and
approved by the Trust's Valuation Committee and the Board of Trustees.
Equity securities are valued on the basis of prices furnished by pricing
services or as determined in good faith by the Adviser under the direction of
the Board of Trustees.
Short-term securities with remaining maturities of 60 days or less are
valued at amortized cost, which approximates market value. Short-term loan
participations are valued at cost in the absence of any indication of
impairment.
The Trust may invest in repurchase agreements, which are short-term
investments in which the Trust acquires ownership of a debt security and the
seller agrees to repurchase the security at a future time and specified price.
Repurchase agreements are fully collateralized by the underlying debt security.
The Trust will make payment for such securities only upon
38
VAN KAMPEN SENIOR INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
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 Trust.
B. SECURITY TRANSACTIONS Investment transactions are recorded on a trade date
basis. Realized gains and losses are determined on an identified cost basis.
Legal expenditures that are expected to result in the restructuring of or a plan
of reorganization for an investment are recorded as realized losses.
C. INVESTMENT INCOME Dividend income is recorded on the ex-dividend date and
interest income is recorded on an accrual basis. Facility fees received are
treated as market discounts. Market premiums are amortized and discounts are
accreted over the stated life of each applicable senior loan, note, or other
fixed income security. Other income is comprised primarily of amendment fees
which are recorded when received. Amendment fees are earned as compensation for
agreeing to changes in loan agreements.
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.
The Trust 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 such losses against any future realized capital
gains. At July 31, 2005, the Trust had an accumulated capital loss carryforward
for tax purposes of $211,408,105, which will expire according to the following
schedule.
AMOUNT EXPIRATION
$4,851,995................................................ July 31, 2009
122,716,095................................................ July 31, 2010
52,014,750................................................ July 31, 2011
29,634,358................................................ July 31, 2012
2,190,907................................................ July 31, 2013
At January 31, 2006, the cost and related gross unrealized appreciation and
depreciation are as follows:
Cost of investments for tax purposes........................ $2,832,881,939
==============
Gross tax unrealized appreciation........................... $ 13,662,714
Gross tax unrealized depreciation........................... (20,026,733)
--------------
Net tax unrealized depreciation on investments.............. $ (6,364,019)
==============
E. DISTRIBUTION OF INCOME AND GAINS The Trust intends to declare and pay monthly
dividends from net investment income to common shareholders. Net realized gains,
if any, are to be distributed at least annually to common shareholders.
Distributions from net realized gains for book purposes may include short term
capital gains, which are included as ordinary income for tax purposes.
39
VAN KAMPEN SENIOR INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
The tax character of distributions paid for the year ended July 31, 2005 was
as follows:
Distributions paid from:
Ordinary income........................................... $102,806,311
Long-term capital gain.................................... -0-
------------
$102,806,311
============
As of July 31, 2005, the components of distributable earnings on a tax basis
were as follows:
Undistributed ordinary income............................... $5,272,503
Long-term capital gain...................................... -0-
Net realized gains and losses may differ for financial and tax reporting
purposes primarily as a result of the deferral of losses resulting from wash
sale transactions and other losses that were recognized for book purposes but
not tax purposes at the end of the fiscal year.
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of the Trust's Investment Advisory Agreement, the Adviser will
provide investment advice and facilities to the Trust for an annual fee of .85%
of the average daily managed assets. Managed assets are defined as the gross
asset value of the Trust minus the sum of accrued liabilities, other than the
aggregate amount of borrowings undertaken by the Trust. In addition, the Trust
will pay a monthly administrative fee to Van Kampen Investments Inc., the
Trust's Administrator, at an annual rate of .20% of the average daily managed
assets of the Trust. The administrative services provided by the Administrator
include monitoring the provisions of the loan agreements and any agreements with
respect to participations and assignments, record keeping responsibilities with
respect to interests in Variable Rate Senior Loans in the Trust's portfolio and
providing certain services to the holders of the Trust's securities.
For the six months ended January 31, 2006, the Trust recognized expenses of
approximately $77,400 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, and Chief Compliance Officer ("CCO")
Employment agreements, the Adviser provides 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 January 31, 2006, the Trust recognized
expenses of approximately $81,100, representing Van Kampen Investment Inc.'s or
its affiliates' (collectively "Van Kampen") cost of providing legal services to
the Trust, as well as, the salary, benefits and related costs of the CCO and
related support staff paid by Van Kampen. Services provided pursuant to the
Legal Services agreement are reported as part of "Legal" expenses on the
Statement of Operations. Services provided pursuant to the CCO Employment
agreement are reported as part of "Other" expenses on the Statement of
Operations.
Certain officers and trustees of the Trust are also officers and directors
of Van Kampen. The Trust does not compensate its officers or trustees who are
officers of Van Kampen.
40
VAN KAMPEN SENIOR INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
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 for a ten-year period
and are based upon each trustee's years of service to the Trust. The maximum
annual benefit per trustee under the plan is $2,500.
During the period, the Trust owned shares of the following affiliated
companies. Affiliated companies are defined by the 1940 Act, as amended, as
those companies in which a fund holds 5% or more of the outstanding voting
securities.
PAR/ DIVIDEND/INTEREST MARKET VALUE
NAME SHARES * INCOME 1/31/06 COST
Imperial Home Decor Group, Inc.,
Term Loan....................... $1,379,619 $ -0- $ 34,490 $1,327,475
Imperial Home Decor Group, Inc.,
Common Stock.................... 512,023 -0- -0- 522,263
Neoplan USA Corp., Revolving
Credit Agreement................ $ 933,750 39,205 933,750 933,750
Neoplan USA Corp., Common Stock... 8,517 -0- -0- 85
Neoplan USA Corp., Preferred Stock
C............................... 532 -0- -0- 532
Neoplan USA Corp., Preferred Stock
D............................... 1,730 -0- -0- 1,073,989
----------------- ------------ ----------
$39,205 $968,240 $3,858,094
================= ============ ==========
* Shares were acquired through the restructuring of Senior Loan interests.
There were no affiliate transactions during the six months ended January 31,
2006.
3. INVESTMENT TRANSACTIONS
During the period, the costs of purchases and proceeds from investments sold and
repaid, excluding short-term investments, were $1,072,922,357 and
$1,070,577,444, respectively.
4. COMMITMENTS
Pursuant to the terms of certain Senior Loan agreements, the Trust had unfunded
loan commitments of approximately $156,876,500 as of January 31, 2006. The Trust
intends to reserve against such contingent obligations by designating cash,
liquid securities and liquid Senior Loans as a reserve. The unrealized
depreciation on these commitments of $2,504,560 as of January 31, 2006 is
reported as "Unfunded Commitments" on the Statement of Assets and Liabilities.
5. SENIOR LOAN PARTICIPATION COMMITMENTS
The Trust invests primarily in participations, assignments, or acts as a party
to the primary lending syndicate of a Variable Rate Senior Loan interest to
United States and foreign corporations, partnerships, and other entities. When
the Trust purchases a participation of a Senior Loan interest, the Trust
typically enters into a contractual agreement with the lender or other third
party selling the participation, but not with the borrower directly. As such,
the Trust assumes the credit risk of the borrower, selling participant or other
persons interpositioned between the Trust and the borrower.
41
VAN KAMPEN SENIOR INCOME TRUST
NOTES TO FINANCIAL STATEMENTS -- JANUARY 31, 2006 (UNAUDITED) continued
At January 31, 2006, the following sets forth the selling participants with
respect to interests in Senior Loans purchased by the Trust on a participation
basis.
PRINCIPAL
AMOUNT VALUE
SELLING PARTICIPANT (000) (000)
GE Capital.................................................. $9,800 $9,834
6. BORROWINGS
The Trust may utilize financial leverage to the maximum extent allowable under
the 1940 Act, as amended. Under the 1940 Act, as amended, a fund generally may
not (i) borrow money greater than 33 1/3% of the fund's total assets or (ii)
issue preferred shares greater than 50% of the fund's total assets. In using a
combination of borrowing money and issuing preferred shares, the maximum
allowable leverage is somewhere between 33 1/3% and 50% (but in no event more
that 50%) of the Fund's total assets based on the relative amounts borrowed or
preferred shares issued.
The Trust has entered into a $700 million revolving credit and security
agreement. Annual commitment fees of .13% are charged on the unused portion of
the credit line. This revolving credit agreement is secured by the assets of the
Trust. For the six months ended January 31, 2006, the average daily balance of
borrowings under the revolving credit agreement was $562,005,435 with a weighted
average interest rate of 3.84%.
7. PREFERRED SHARES ISSUANCE
As of February 20, 2004 , the Trust issued 5,600 shares each of Series M, Series
T, Series W, Series TH and Series F Auction Preferred Shares ("APS"), $.01 Par
Value, $25,000 liquidation preference, for a total issuance of $700 million.
Dividends are cumulative and the dividend rates are generally reset every seven
days through an auction process. The average rate in effect on January 31, 2006
was 4.198%. During the six months ended January 31, 2006, the rates ranged from
3.200% to 4.500%.
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 in 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.
8. IDEMNIFICATIONS
The Trust enters into contracts that contain a variety of idemnifications. 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.
42
VAN KAMPEN SENIOR INCOME TRUST
BOARD OF TRUSTEES, OFFICERS AND IMPORTANT ADDRESSES
BOARD OF TRUSTEES
DAVID C. ARCH
ROD DAMMEYER
HOWARD J KERR
RICHARD F. POWERS, III* - Chairman
HUGO F. SONNENSCHEIN
WAYNE W. WHALEN*
OFFICERS
RONALD E. ROBISON
President and Principal Executive Officer
JOSEPH J. MCALINDEN
Executive Vice President
and Chief Investment Officer
AMY R. DOBERMAN
Vice President
STEFANIE V. CHANG
Vice President and Secretary
JOHN L. SULLIVAN
Chief Compliance Officer
PHILLIP G. GOFF
Chief Financial Officer and Treasurer
HOWARD TIFFEN
Vice President
INVESTMENT ADVISER
VAN KAMPEN ASSET MANAGEMENT
1221 Avenue of the Americas
New York, New York 10020
CUSTODIAN
STATE STREET BANK AND TRUST COMPANY
225 Franklin Street
P.O. Box 1713
Boston, Massachusetts 02110
TRANSFER AGENT
EQUISERVE TRUST COMPANY, N.A.
c/o Computershare Investor Services
P.O. Box 43010
Providence, Rhode Island 02940-3010
LEGAL COUNSEL
SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP
333 West Wacker Drive
Chicago, Illinois 60606
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
DELOITTE & TOUCHE LLP
111 South Wacker Drive
Chicago, Illinois 60606-4301
* "Interested persons" of the Trust, as defined in the Investment Company Act
of 1940, as amended.
43
Van Kampen Senior 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 Senior 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
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Van Kampen Senior 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
P.O. Box 5555
Oakbrook Terrace, IL 60181-5555
www.vankampen.com
Copyright (C)2006 Van Kampen Funds Inc. All rights reserved.
Member NASD/SIPC.
VVR SAR 3/06
(VAN KAMPEN INVESTMENTS SHINE LOGO) RA06-00202P-Y01/06
Item 2. Code of Ethics.
Not applicable for semi-annual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable for semi-annual reports.
Item 6. Schedule of Investments.
Please refer to Item #1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable for semi-annual reports.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable for semi-annual reports.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. Controls and Procedures
(a) The Trust's principal executive officer and principal financial officer have
concluded that the Trust's disclosure controls and procedures are sufficient to
ensure that information required to be disclosed by the Trust in this Form
N-CSRS was recorded, processed, summarized and reported within the time periods
specified in the Securities and Exchange Commission's rules and forms, based
upon such officers' evaluation of these controls and procedures as of a date
within 90 days of the filing date of the report.
(b) There were no changes in the registrant's internal control over financial
reporting that occurred during the second fiscal quarter of the period covered
by this report that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting.
Item 12. Exhibits.
(1) Code of Ethics - Not applicable for semi-annual reports.
(2)(a) A certification for the Principal Executive Officer of the registrant is
attached hereto as part of EX-99.CERT.
(2)(b) A certification for the Principal Financial Officer of the registrant is
attached hereto as part of EX-99.CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Van Kampen Senior Income Trust
By: /s/ Ronald E. Robison
----------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: March 23, 2006
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed by the following
persons on behalf of the registrant and in the capacities and on the dates
indicated.
By: /s/ Ronald E. Robison
----------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: March 23, 2006
By: /s/ Phillip G. Goff
----------------------
Name: Phillip G. Goff
Title: Principal Financial Officer
Date: March 23, 2006