nvq
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-22043
Van Kampen Dynamic Credit Opportunities Fund
 
(Exact name of registrant as specified in charter)
522 Fifth Avenue, New York, New York 10036
 
(Address of principal executive offices) (Zip code)
Edward C. Wood III
522 Fifth Avenue, New York, New York 10036
 
(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: 10/31/09
 
 

 

 

Item 1. Schedule of Investments.
The Fund’s schedule of investments as of the close of the reporting period prepared pursuant to Rule 12-12 of Regulation S-X is as follows:
Van Kampen Dynamic Credit Opportunities Fund
Portfolio of Investments § October 31, 2009 (Unaudited)
                         
Principal                    
Amount             Stated      
(000)     Borrower   Coupon   Maturity *   Value  
 
        Variable Rate Senior Loan Interests ** 107.4%            
       
Aerospace/Defense 0.4%
                
$ 2,256    
IAP Worldwide Services, Inc., Term Loan (a)
      9.25%   12/30/12   $ 1,897,130  
  2,000    
Wesco Aircraft Hardware Corp., Term Loan
   6.00   03/28/14     1,687,500  
       
 
              
       
 
             3,584,630  
       
 
              
       
Automotive 2.8%
                
  1,555    
Acument Global Technologies, Term Loan (a)
   14.00     08/11/13     1,038,082  
  6,972    
Federal-Mogul Corp., Term Loan
   2.19   12/29/14 to 12/28/15     5,372,900  
  11,099    
Ford Motor Co., Term Loan
  3.25 to 3.29   12/16/13     9,919,676  
  4,145    
Metokote Corp., Term Loan
  3.25 to 5.25   11/27/11     3,316,210  
  4,530    
Oshkosh Truck Corp., Term Loan
  6.29 to 6.33   12/06/13     4,532,867  
  498    
TRW Automotive, Inc., Term Loan
   6.25   02/09/14     498,448  
       
 
              
       
 
             24,678,183  
       
 
              
       
Banking 0.4%
                
  3,936    
Dollar Financial Corp., Term Loan
   3.04   10/30/12     3,744,130  
       
 
              
       
Beverage, Food & Tobacco 8.2%
                
€ 5,000    
Alliance Boots Holdings Limited, Term Loan (United Kingdom)
   3.37     07/05/15     6,649,000  
  10,521    
BE Foods Investments, Inc., Term Loan (a)
   5.25   07/11/12     10,205,110  

 

 

Van Kampen Dynamic Credit Opportunities Fund
Portfolio of Investments § October 31, 2009 (Unaudited) continued
                         
Principal                    
Amount             Stated      
(000)     Borrower   Coupon   Maturity *   Value  
 
        Beverage, Food & Tobacco (continued)            
$ 4,675    
Coleman Natural Foods, LLC, Term Loan
   7.46 to 7.60%   08/22/12   $ 2,805,151  
  8,834    
Dole Food Co., Inc., Term Loan
   5.28 to 8.00   04/12/13     8,939,278  
  10,000    
DSW Holdings, Inc., Term Loan
   4.29   03/02/12     8,733,330  
  12,000    
Farley’s & Sathers Candy Co., Inc., Term Loan
   11.25     03/24/11     10,800,000  
€ 1,276    
Foodvest Limited, Term Loan (Sweden)
   4.68   10/02/16     1,769,158  
  5,000    
FSB Holdings, Inc., Term Loan
   6.00   03/29/14     4,200,000  
€ 1,957    
Liberator Midco Limited, Term Loan (United Kingdom)
   2.68 to 3.05   11/03/14 to 11/03/15     2,810,836  
  3,000    
LJVH Holdings, Inc., Term Loan (Canada)
   5.78   01/19/15     2,572,500  
€ 3,561    
Panrico, Inc., Term Loan (Spain)
   3.84 to 4.22   05/31/14 to 05/31/15     4,333,032  
  9,045    
Pinnacle Foods Finance, LLC, Term Loan
   3.00   04/02/14     8,491,133  
       
 
              
       
 
             72,308,528  
       
 
              
       
Broadcasting - Cable 8.0%
                
€ 6,500    
Bultel Cable Bulgaria EAD, Term Loan (Bulgaria)
   5.42 to 6.42   10/27/15 to 10/27/16     9,565,730  

 

 

Van Kampen Dynamic Credit Opportunities Fund
Portfolio of Investments § October 31, 2009 (Unaudited) continued
                         
Principal                    
Amount             Stated      
(000)     Borrower   Coupon   Maturity *   Value  
 
        Broadcasting - Cable (continued)            
$ 20,945    
Charter Communications Operating, LLC, Term Loan (c)
   6.25 to 6.75%   03/06/14 to 09/06/14   $ 18,865,836  
  2,969    
CSC Holdings, Inc., Term Loan
   1.30 to 1.44   02/24/12     2,856,321  
  1,194    
Discovery Communications Holdings, LLC, Term Loan
   5.25   05/14/14     1,213,402  
€ 10,000    
Kabel Baden-Wurttemberg GmbH, Term Loan (Germany)
   2.93 to 3.43   06/09/14 to 06/09/15     14,152,381  
  4,137    
Knology, Inc., Term Loan
   3.78   06/30/14     4,043,519  
  4,985    
TWCC Holding Corp., Term Loan
   7.25   09/12/15     5,067,464  
  1,250    
UPC Broadband Holding B.V., Term Loan (Netherlands)
   3.75   12/30/16     1,203,125  
€ 10,000    
UPC Broadband Holding B.V., Term Loan (Netherlands)
   4.67     12/31/17     13,601,277  
       
 
              
       
 
             70,569,055  
       
 
              
       
Broadcasting - Diversified 0.9%
                
  7,713    
Alpha Topco, Ltd., Term Loan (United Kingdom)
   1.24 to 3.74   12/31/13 to 06/30/14     6,864,470  
  887    
Cumulus Media, Inc., Term Loan
   4.25   06/11/14     730,653  
       
 
              
       
 
             7,595,123  
       
 
              
       
Broadcasting - Radio 0.6%
                
  1,857    
CMP KC, LLC, Term Loan (d)
   6.25   05/03/11     566,500  

 

 

Van Kampen Dynamic Credit Opportunities Fund
Portfolio of Investments § October 31, 2009 (Unaudited) continued
                         
Principal                    
Amount             Stated      
(000)     Borrower   Coupon   Maturity *   Value  
 
       
Broadcasting - Radio (continued)
                
$ 4,809    
CMP Susquehanna Corp., Term Loan
      2.25%   05/05/13   $ 3,566,506  
  1,761    
Multicultural Radio Broadcasting, Inc., Term Loan
   2.99   12/18/12     1,276,453  
       
 
              
       
 
             5,409,459  
       
 
              
       
Broadcasting - Television 2.1%
                
  2,680    
FoxCo Acquisition, LLC, Term Loan
   7.25   07/14/15     2,449,034  
  639    
High Plains Broadcasting Operating Co., LLC, Term Loan
   7.25   09/14/16     525,155  
  2,420    
Newport Television, LLC, Term Loan
  7.25 to 8.00   09/14/16     1,988,676  
  16,801    
Univision Communications, Inc., Term Loan
   2.53   09/29/14     13,482,676  
       
 
              
       
 
             18,445,541  
       
 
              
       
Buildings & Real Estate 1.4%
                
  2,000    
El Ad IDB Las Vegas, LLC, Term Loan
    4.24   08/09/12     902,500  
  3,000    
FX Luxury Las Vegas I, LLC, Term Loan (e)(f)
   11.25   07/06/09     31,500  
  4,500    
Ginn LA CS Borrower, LLC, Term Loan (d)(f)
   10.20   06/08/12     7,501  
  2,979    
Ginn LA CS Borrower, LLC, Term Loan (f) 
   6.20 to 7.75   06/08/11     253,242  
  3,721    
Kuilima Resort Co., Term Loan (a)(d)(f)
   22.25   09/30/11     0  

 

 

Van Kampen Dynamic Credit Opportunities Fund
Portfolio of Investments § October 31, 2009 (Unaudited) continued
                         
Principal                    
Amount             Stated      
(000)     Borrower   Coupon   Maturity *   Value  
 
        Buildings & Real Estate (continued)            
$ 63    
Kuilima Resort Co., Term Loan (a)(d)(e)(f)
      30.25%   10/01/08   $ 0  
  2,618    
Kyle Acquisition Group, LLC, Term Loan (f)
     4.00   07/20/11     191,954  
  2,382    
Kyle Acquisition Group, LLC, Term Loan (e)(f)
     5.75   07/20/09     174,711  
  1,806    
Lake at Las Vegas Joint Venture, LLC, Revolving Credit Agreement (a)(c)(f)
   14.35   06/20/12     52,663  
  3,000    
Lake at Las Vegas Joint Venture, LLC, Term Loan (a)(c)
     9.74   12/31/09     1,650,000  
  18,235    
Lake at Las Vegas Joint Venture, LLC, Term Loan (a)(c)(f)
   15.35 to 20.00   10/01/10 to 12/22/12     531,870  
  2,018    
NLV Holdings, LLC, Term Loan (a)(c)
   12.50   05/09/12     148,841  
  5,859    
Realogy Corp., Term Loan
   3.25 to 3.29   10/10/13     4,925,416  
  4,548    
Rhodes Ranch General Partnership, Term Loan (a)(c)(f)
   3.25 to 9.75   11/21/10 to 11/21/11     455,131  
  2,000    
Standard Pacific Corp., Term Loan
     2.19   05/05/13     1,670,000  
  2,497    
Tamarack Resorts, LLC, Term Loan (f)
   7.50 to 8.05   05/19/11     230,901  

 

 

Van Kampen Dynamic Credit Opportunities Fund
Portfolio of Investments § October 31, 2009 (Unaudited) continued
                         
Principal                    
Amount             Stated      
(000)     Borrower   Coupon   Maturity *   Value  
 
        Buildings & Real Estate (continued)            
$ 209    
Tamarack Resorts, LLC, Term Loan (e) (f)
     20.25%   07/02/09   $ 166,886  
  792    
WCI Communities, Inc., Term Loan (a)
   10.00 to 11.00   09/03/14 to 09/02/16     742,407  
       
 
              
       
 
             12,135,523  
       
 
              
       
Business Equipment & Services 2.4%
                
  2,940    
GSI Holdings, LLC, Term Loan
     3.38   08/01/14     2,425,500  
  2,694    
NCO Financial Systems, Term Loan
     7.50   05/15/13     2,611,974  
  9,897    
Nielsen Finance, LLC, Term Loan
     2.24   08/09/13     9,167,263  
  3,909    
RGIS Holdings, LLC, Term Loan
   2.75 to 2.78   04/30/14     3,483,992  
  3,915    
SMG Holdings, Inc., Term Loan
   3.25 to 4.12   07/27/14     3,523,410  
       
 
              
       
 
             21,212,139  
       
 
              
       
Chemicals, Plastics & Rubber 5.7%
                
  3,802    
Ashland Chemicals, Term Loan
   6.50 to 7.65   11/13/13 to 05/13/14     3,853,549  
  5,000    
Brenntag Holding Gmbh & Co, KG, Term Loan (Germany)
     4.25   07/07/15     4,691,665  
  4,740    
Georgia Gulf Corp., Term Loan
   10.00   10/03/13     4,742,065  
  8,869    
Hexion Specialty Chemicals, Inc., Term Loan
   2.56 to 2.75   05/06/13     7,006,813  
  4,348    
Huntsman International, LLC, Term Loan
     2.49   06/30/16     3,994,565  

 

 

Van Kampen Dynamic Credit Opportunities Fund
Portfolio of Investments § October 31, 2009 (Unaudited) continued
                         
Principal                    
Amount             Stated      
(000)     Borrower   Coupon   Maturity *   Value  
 
       
Chemicals, Plastics & Rubber (continued)
                
$ 74    
Lyondell Chemical Co., Revolving Credit Agreement (c)
   3.74 to 5.75%   12/22/14   $ 42,715  
  15,804    
Lyondell Chemical Co., Term Loan (c)
   3.74 to 13.00   02/03/10 to 12/22/14     10,591,920  
  1,004    
Nalco Co., Term Loan
     6.50   05/13/16     1,023,185  
  4,938    
PQ Corp., Term Loan
   3.50 to 3.54   07/30/14     4,419,063  
  5,196    
Solutia, Inc., Term Loan
     7.25   02/28/14     5,286,173  
  5,733    
Univar, Inc., Term Loan
    3.24   10/10/14     5,234,643  
       
 
              
       
 
             50,886,356  
       
 
              
       
Construction Material 2.2%
                
  4,951    
Axia, Inc., Term Loan (a)(d)(g)
   17.95   12/21/12     0  
  1,877    
Axia, Inc., Term Loan (a)(g)
     5.00   12/21/12     422,361  
£ 9,493    
Baxi Group Ltd., Term Loan (United Kingdom)
   3.91 to 4.91   12/31/19     14,673,103  
  2,315    
Building Materials Holding Corp., Term Loan (c)(f)
     6.50   11/10/11     711,715  
  2,331    
Contech Construction Products, Inc., Term Loan
     2.25   01/31/13     2,097,866  
  2,000    
Custom Building Products, Inc., Term Loan
   10.75   04/20/12     1,907,500  
       
 
              
       
 
             19,812,545  
       
 
              

 

 

Van Kampen Dynamic Credit Opportunities Fund
Portfolio of Investments § October 31, 2009 (Unaudited) continued
                         
Principal                    
Amount             Stated      
(000)     Borrower   Coupon   Maturity *   Value  
 
       
Containers, Packaging & Glass 1.9%
                
$ 1,239    
Anchor Glass Container Corp., Term Loan
      6.75%   06/20/14   $ 1,242,154  
  8,858    
Berlin Packaging, LLC, Term Loan
   3.25 to 6.93   08/17/14 to 08/17/15     6,365,818  
  2,692    
Berry Plastics Goup, Inc., Term Loan
   2.30   04/03/15     2,319,428  
  6,556    
Graham Packaging Co., L.P., Term Loan
   2.50 to 6.75   10/07/11 to 04/05/14     6,569,531  
       
 
              
       
 
             16,496,931  
       
 
              
       
Diversified Manufacturing 0.3%
                
  5,018    
Euramax International, Inc., Term Loan (a)
   10.00 to 14.00   06/29/13     3,035,673  
       
 
              
       
Ecological 0.5%
                
  6,850    
Synagro Technologies, Inc., Term Loan
   4.99   10/02/14     4,349,750  
       
 
              
       
Education & Child Care 1.7%
                
  1,368    
Bright Horizons Family Solutions, Inc., Revolving Credit Agreement
   3.50 to 5.75   05/28/14     1,285,920  
  9,156    
Cengage Learning, Holdings II, Inc. LP, Term Loan
   2.74   07/03/14     7,874,512  
  500    
Educate, Inc., Term Loan
   5.54   06/16/14     426,250  
  1,969    
Education Management, LLC, Term Loan
   2.06   06/03/13     1,850,422  

 

 

Van Kampen Dynamic Credit Opportunities Fund
Portfolio of Investments § October 31, 2009 (Unaudited) continued
                         
Principal                    
Amount             Stated      
(000)     Borrower   Coupon   Maturity *   Value  
 
        Education & Child Care (continued)            
$ 5,000    
Nelson Education Ltd., Term Loan (Canada)
       6.28%   07/03/15   $ 3,775,000  
       
 
              
       
 
             15,212,104  
       
 
              
       
Electronics 2.8%
                
  9,304    
Edwards Ltd., Term Loan (Cayman Islands) (a)
   2.24 to 6.78   05/31/14 to 11/30/14     6,234,626  
  4,936    
Infor Enterprise Solutions Holdings, Inc., Term Loan
     4.00   07/28/12     4,355,612  
  6,822    
Open Solutions, Inc., Term Loan
     2.41   01/23/14     5,537,304  
  4,879    
Stratus Technologies, Inc., Term Loan
     4.04   03/29/11     4,114,871  
  1,952    
Sungard Data Systems, Inc., Term Loan
   1.99 to 6.75   02/28/14 to 02/26/16     1,914,076  
  3,103    
Verint Systems, Inc., Term Loan
     3.50   05/25/14     2,838,794  
       
 
              
       
 
             24,995,283  
       
 
              
       
Entertainment & Leisure 3.4%
                
  3,526    
Fender Musical Instruments Corp., Term Loan
     2.54   06/09/14     3,014,502  
  26,949    
Metro-Goldwyn-Mayer Studios, Inc., Term Loan (f)
   20.50   04/08/12     14,956,424  

 

 

Van Kampen Dynamic Credit Opportunities Fund
Portfolio of Investments § October 31, 2009 (Unaudited) continued
                         
Principal                    
Amount             Stated      
(000)     Borrower   Coupon   Maturity *   Value  
 
       
Entertainment & Leisure (continued)
                
£ 7,350    
Red Football Limited, Term Loan (United Kingdom)
   3.01 to 3.26   08/16/14   $ 11,063,663  
$ 1,500    
Ticketmaster Entertainment, Inc., Term Loan
   3.55   07/25/14     1,477,500  
       
 
              
       
 
             30,512,089  
       
 
              
       
Farming & Agriculture 0.5%
                
  5,000    
WM. Bolthouse Farms, Inc., Term Loan
   5.74   12/16/13     4,737,500  
       
 
              
       
Finance 5.6%
                
  3,775    
C.G. JCF Corp., Term Loan
   3.25   08/01/14     3,416,779  
  26,364    
First Data Corp., Term Loan
   2.99 to 3.04   09/24/14     22,661,702  
  5,733    
National Processing Co. Group, Term Loan
   7.00 to 10.75   09/29/13 to 09/29/14     5,169,106  
  4,829    
Nuveen Investments, Inc., Term Loan
   3.28   11/13/14     4,181,946  
  7,599    
Oxford Acquisition III, Ltd., Term Loan (United Kingdom)
   2.28   05/12/14     6,319,430  
  9,742    
RJO Holdings, Corp., Term Loan
   3.25 to 7.00   07/13/15     3,938,898  
  4,757    
Transfirst Holdings, Inc., Term Loan (a)
   3.04 to 7.04   06/15/14 to 06/15/15     4,073,550  
       
 
              
       
 
             49,761,411  
       
 
              
       
Health & Beauty 1.1%
                
  5,081    
American Safety Razor Co., Term Loan
   6.54   01/30/14     4,153,427  

 

 

Van Kampen Dynamic Credit Opportunities Fund
Portfolio of Investments § October 31, 2009 (Unaudited) continued
                         
Principal                    
Amount             Stated      
(000)     Borrower   Coupon   Maturity *   Value  
 
       
Health & Beauty (continued)
                
$ 7,876    
Marietta Intermediate Holding Corp, Term Loan (a)
   5.25 to 12.00%   11/30/10   $ 1,366,885  
  4,776    
Philosophy, Inc., Term Loan
   2.25   03/16/14     4,035,929  
       
 
              
       
 
             9,556,241  
       
 
              
       
Healthcare 5.3%
                
  2,992    
Capella Healthcare, Inc., Term Loan
   5.75   03/02/15     2,940,038  
  1,985    
Catalent Pharma Solutions, Term Loan
   2.49   04/10/14     1,730,721  
  5,551    
Community Health Systems, Inc., Term Loan
   2.49 to 2.62   07/25/14     5,127,942  
  3,116    
Concentra Inc., Term Loan (a)
   6.54   06/25/15     2,585,918  
  7,075    
HCA, Inc., Term Loan
   2.53   11/18/13     6,602,782  
  6,158    
Health Management Associates, Inc., Term Loan
   2.03   02/28/14     5,727,662  
  1,689    
Healthcare Partners, LLC, Term Loan
   2.03   10/31/13     1,619,329  
  2,933    
Inverness Medical Innovations, Inc., Term Loan
   2.24 to 2.28   06/26/14     2,778,544  
  4,361    
Manor Care, Inc. Term Loan
   2.74 to 2.75   12/22/14     4,095,461  
  700    
Surgical Care Affiliates, LLC, Revolving Credit Agreement
   1.75 to 2.04   06/28/13     595,000  
  5,887    
Surgical Care Affiliates, LLC, Term Loan
   2.30   12/29/14     5,411,283  

 

 

Van Kampen Dynamic Credit Opportunities Fund
Portfolio of Investments § October 31, 2009 (Unaudited) continued
                         
Principal                    
Amount             Stated      
(000)     Borrower   Coupon   Maturity *   Value  
 
       
Healthcare (continued)
                
$ 3,937    
United Surgical Partners, International, Inc., Term Loan
   2.25 to 2.29%   04/21/14   $ 3,684,833  
  4,104    
Viant Holdings, Inc., Term Loan
   2.54   06/25/14     4,001,065  
       
 
              
       
 
             46,900,578  
       
 
              
       
Home & Office Furnishings, Housewares & Durable Consumer Products 1.1%
                
  8,651    
Hunter Fan Co., Term Loan
   2.75 to 7.00   04/16/14 to 10/16/14     4,905,088  
  4,888    
Mattress Holdings, Corp., Term Loan
   2.54   01/18/14     3,421,250  
  2,208    
National Bedding Co. LLC, Term Loan
   5.31   02/28/14     1,788,223  
       
 
              
       
 
             10,114,561  
       
 
              
       
Hotels, Motels, Inns & Gaming 10.0%
                
€ 3,768    
Amadeus IT Group S.A., Term Loan (Spain)
   1.49   12/31/19     5,267,739  
  3,717    
Amadeus IT Group S.A., Term Loan (Spain)
   1.48 to 1.69     12/31/19     3,527,221  
  1,996    
BLB Worldwide Holdings, Inc., Term Loan (a)
   4.75   07/18/11     1,207,861  
  5,500    
BLB Worldwide Holdings, Inc., Term Loan (f)
   6.50   07/18/12     371,250  
  7,568    
Cannery Casino Resorts, LLC, Term Loan
   2.49 to 4.50   05/18/13 to 05/16/14     6,168,379  
  2,482    
CCM Merger, Inc., Term Loan
   8.50   07/13/12     2,366,185  

 

 

Van Kampen Dynamic Credit Opportunities Fund
Portfolio of Investments § October 31, 2009 (Unaudited) continued
                         
Principal                    
Amount             Stated      
(000)     Borrower   Coupon   Maturity *   Value  
 
        Hotels, Motels, Inns & Gaming (continued)            
£ 1,936    
Gala Group Ltd, Term Loan (United Kingdom)
     3.53%   12/01/12   $ 2,941,272  
$ 2,691    
Golden Nugget, Inc., Term Loan
   2.25 to 3.50   06/30/14 to 12/31/14     1,384,912  
  842    
Greektown Casino, LLC, Term Loan (c)(f)
   7.00   12/03/12     822,374  
  5,565    
Greektown Holdings, LLC, Term Loan (a)
   16.75     12/31/09     5,599,708  
  13,225    
Harrah’s Operating Co., Inc., Term Loan
   3.28 to 9.50   01/28/15 to 10/31/16     10,649,652  
  7,964    
Las Vegas Sands, LLC, Venetian Casino Term Loan
   2.04   05/23/14     6,500,961  
  9,923    
Magnolia Hill, LLC, Term Loan
   3.50 to 14.00   10/30/13 to 04/30/14     9,231,124  
  2,739    
MGM Mirage, Term Loan
   6.00   10/03/11     2,505,914  
€ 20,500    
Regency Entertainment SA, Term Loan (Greece)
   2.93 to 3.31   03/02/14 to 03/02/15     26,649,134  
  3,980    
Venetian Macau, Ltd., Term Loan
   4.79   05/25/12 to 05/27/13     3,699,410  
       
 
              
       
 
             88,893,096  
       
 
              
       
Insurance 1.9%
                
  3,904    
Alliant Holdings I, Inc., Term Loan
   3.28   08/21/14     3,640,015  
  6,034    
AmWins Group, Inc., Term Loan
   2.79 to 2.88   06/08/13     4,932,657  
  3,030    
Conseco, Inc., Term Loan
   6.50   10/10/13     2,744,571  

 

 

Van Kampen Dynamic Credit Opportunities Fund
Portfolio of Investments § October 31, 2009 (Unaudited) continued
                         
Principal                    
Amount             Stated      
(000)     Borrower   Coupon   Maturity *   Value  
 
        Insurance (continued)            
$ 1,750    
HMSC Corp., Term Loan
      5.78%   10/03/14   $ 936,250  
  3,654    
Mitchell International, Inc., Term Loan
   5.56   03/30/15     2,484,401  
  2,475    
Vertafore, Inc., Term Loan
   6.39 to 7.50   01/31/13 to 07/31/14     2,356,844  
       
 
              
       
 
             17,094,738  
       
 
              
        Machinery 1.0%            
  5,790    
Goodman Global, Inc., Term Loan
   6.25   02/13/14     5,808,817  
  3,918    
Mold-Masters Luxembourg Holdings, SA, Term Loan
   7.00   10/11/14     3,261,619  
       
 
              
       
 
             9,070,436  
       
 
              
        Media 1.4%            
£ 8,000    
Virgin Media Investment Holdings Limited, Term Loan
(United Kingdom)
   9.50   12/31/19     12,186,275  
       
 
              
        Medical Products & Services 0.4%            
  1,841    
Biomet, Inc., Term Loan
   3.25 to 3.29   03/25/15     1,773,006  
  1,735    
Carestream Health, Inc., Term Loan
   2.24 to 2.25   04/30/13     1,626,741  
  453    
Orthofix Holdings, Inc., Term Loan
   6.75   09/22/13     449,024  
       
 
              
       
 
             3,848,771  
       
 
              
        Mining, Steel, Iron & Non-Precious Metals 0.4%        
  3,873    
John Maneely Co., Term Loan
   3.50 to 3.53   12/09/13     3,558,332  
       
 
              

 

 

Van Kampen Dynamic Credit Opportunities Fund
Portfolio of Investments § October 31, 2009 (Unaudited) continued
                         
Principal                    
Amount             Stated      
(000)     Borrower   Coupon   Maturity *   Value  
 
       
Natural Resources 0.4%
                
$ 3,000    
Dresser, Inc., Term Loan
      6.00%   05/04/15   $ 2,730,000  
  835    
Western Refining, Inc., Term Loan
   8.25   05/30/14     815,435  
       
 
              
       
 
             3,545,435  
       
 
              
       
Non-Durable Consumer Products 5.4%
                
  6,635    
Amscan Holdings, Inc., Term Loan
   2.50 to 3.38   05/25/13     6,026,687  
  1,943    
Huish Detergents, Inc., Term Loan
   2.00   04/26/14     1,871,397  
  8,362    
KIK Custom Products, Inc., Term Loan
   2.54 to 5.28   06/02/14 to 11/30/14     4,399,925  
  2,939    
Mega Brands, Inc., Term Loan (Canada)
   9.75   07/26/12     1,689,728  
€ 16,128    
Ontex, Term Loan (Belgium)
   3.81 to 4.56   07/06/12 to 07/05/13     22,587,272  
  9,722    
Spectrum Brands, Inc., Term Loan
   8.00 to 8.75   06/29/12     9,532,288  
  5,000    
Targus Group International, Inc., Term Loan (f)
   10.75     05/22/13     1,500,000  
       
 
              
       
 
             47,607,297  
       
 
              
       
Paper & Forest Products 0.6%
                
  3,200    
Ainsworth Lumber Co., Ltd, Term Loan
   5.25   06/26/14     2,517,334  
  1,894    
SP Newsprint Co., Term Loan
   11.00     03/31/10     1,373,036  
  400    
Verso Paper Holding, LLC, Term Loan (a)
   6.73 to 7.48   02/01/13     138,536  

 

 

Van Kampen Dynamic Credit Opportunities Fund
Portfolio of Investments § October 31, 2009 (Unaudited) continued
                         
Principal                    
Amount             Stated      
(000)     Borrower   Coupon   Maturity *   Value  
 
        Paper & Forest Products (continued)            
$ 3,356    
White Birch Paper Co., Term Loan (Canada) (a)(f)
      7.00%   05/08/14   $ 1,132,679  
       
 
              
       
 
             5,161,585  
       
 
              
        Pharmaceuticals 2.8%            
€ 3,000    
Nyco Holdings 2 Aps, Term Loan (Denmark)
   2.10 to 4.12   11/29/11     4,104,401  
  21,919    
Nyco Holdings 2 Aps, Term Loan (Denmark)
   2.85 to 3.60   12/29/14 to 12/29/15     20,298,689  
       
 
              
       
 
             24,403,090  
       
 
              
        Printing & Publishing 6.4%            
  4,000    
Endurance Business Media, Inc., Term Loan (d)(f)
   11.25     01/26/14     0  
  4,123    
Gatehouse Media, Inc., Term Loan
   2.25   08/28/14     1,604,460  
  3,766    
Idearc, Inc., Term Loan (c)(f)
   5.75   11/15/13     1,723,037  
  3,171    
Knowledgepoint 360 Group, LLC, Term Loan
   3.68 to 7.43   04/14/14 to 04/13/15     2,178,297  
  5,731    
MediaNews Group, Inc., Term Loan
   6.74   12/30/10 to 08/02/13     1,772,909  
  4,918    
Merrill Communications, LLC, Term Loan (a)
   12.75 to 15.00   11/15/13     2,840,087  
  2,333    
Newsday, LLC, Term Loan
   6.53   08/01/13     2,327,500  
€ 11,888    
Primacom, Term Loan (Germany)
   4.95 to 5.45   11/21/15 to 11/21/16     13,908,676  

 

 

Van Kampen Dynamic Credit Opportunities Fund
Portfolio of Investments § October 31, 2009 (Unaudited) continued
                         
Principal                    
Amount             Stated      
(000)     Borrower   Coupon   Maturity *   Value  
 
        Printing & Publishing (continued)            
$ 1,451    
Primedia, Inc., Term Loan
   2.49 to 2.53%   08/01/14   $ 1,226,310  
€ 11,916    
Prosiebensat.1 Media AG, Term Loan (Germany)
   2.73   07/03/15     14,840,832  
  1,888    
R.H. Donnelley, Inc., Term Loan (c)
   6.75   06/30/11     1,652,947  
  16,000    
Tribune Co., Bridge Loan (c)(d)(f)
   8.25   12/20/15     320,000  
  17,146    
Tribune Co., Term Loan (c)(f)
   5.25   06/04/14     8,123,044  
  6,000    
Yell Group PLC, Term Loan (United Kingdom)
   3.28   04/30/11     4,320,000  
       
 
              
       
 
             56,838,099  
       
 
              
        Restaurants & Food Service 0.5%            
  1,542    
Center Cut Hospitality, Inc., Term Loan
   2.89   07/06/14     1,441,940  
  3,256    
Volume Services America, Inc., Term Loan
   9.25   12/31/12     3,142,322  
       
 
              
       
 
             4,584,262  
       
 
              
        Retail - Oil & Gas 0.4%            
  3,868    
The Pantry, Inc., Term Loan
   1.75   05/15/14     3,667,781  
       
 
              
        Retail - Specialty 1.7%            
€ 6,315    
Travelport, LLC, Term Loan
   3.24   08/23/13     8,317,764  

 

 

Van Kampen Dynamic Credit Opportunities Fund
Portfolio of Investments § October 31, 2009 (Unaudited) continued
                         
Principal                    
Amount             Stated      
(000)     Borrower   Coupon   Maturity *   Value  
 
        Retail - Specialty (continued)            
€ 6,500    
Zapf, Term Loan (Germany) (d)
      4.93%   11/30/12   $ 7,174,298  
       
 
              
       
 
             15,492,062  
       
 
              
        Retail - Stores 2.2%            
  4,988    
Dollar General Corp., Term Loan
   2.99   07/07/14     4,759,312  
  6,552    
General Nutrition Centers, Inc., Term Loan
   2.50 to 2.54   09/16/13     6,081,098  
  4,157    
Guitar Center, Inc., Term Loan
   3.75   10/09/14     3,466,280  
  4,350    
Rite Aid Corp., Term loan
   6.00   06/04/14     4,088,949  
  1,020    
Sally Holdings, Inc., Term Loan
   2.49 to 2.62   11/16/13     974,246  
       
 
              
       
 
             19,369,885  
       
 
              
        Software 1.6%            
€ 10,000    
NDS Finance Limited, Term Loan (United Kingdom)
   4.93     10/14/15     14,054,266  
       
 
              
        Telecommunications - Equipment & Services 1.8%            
€ 4,774    
EWT (Escaline S.A.R.L), Term Loan (Germany)
   3.56 to 4.22   10/31/14 to 10/30/15     5,835,903  
€ 10,000    
Fibernet, Term Loan (Bulgaria) (d)
   3.14 to 3.64   12/20/14 to 12/20/15     10,301,556  
       
 
              
       
 
             16,137,459  
       
 
              
        Telecommunications - Local Exchange Carriers 1.1%            
  6,533    
Global Tel*Link Corp., Term Loan
   9.00   02/14/13     6,418,303  
  3,200    
Hawaiian Telcom Communications, Inc, Term Loan (a)(c)
   4.75   06/01/14     2,303,735  

 

 

Van Kampen Dynamic Credit Opportunities Fund
Portfolio of Investments § October 31, 2009 (Unaudited) continued
                         
Principal                    
Amount             Stated      
(000)     Borrower   Coupon   Maturity *   Value  
 
        Telecommunications - Local Exchange Carriers (continued)            
$ 1,389    
Sorenson Communications, Inc., Term Loan
     2.75%   08/16/13   $ 1,314,787  
       
 
              
       
 
             10,036,825  
       
 
              
        Telecommunications - Long Distance 0.5%            
  5,167    
Level 3 Communications, Inc., Term Loan
   2.53 to 11.50   03/13/14     4,543,403  
       
 
              
        Telecommunications - Wireless 0.9%            
  2,923    
Asurion Corp., Term Loan
   3.24 to 3.25   07/03/14     2,779,931  
  3,798    
MetroPCS Wireless, Inc., Term Loan
   2.50 to 2.75   11/04/13     3,577,737  
  1,818    
NTELOS, Inc., Term Loan
   5.75   08/07/15     1,831,060  
       
 
              
       
 
             8,188,728  
       
 
              
        Textiles & Leather 0.8%            
  3,470    
Gold Toe Investment Corp., Term Loan
   8.50 to 11.75   10/30/13 to 04/30/14     2,324,610  
  5,000    
Levi Strauss & Co., Term Loan
   2.50   03/27/14     4,612,500  
       
 
              
       
 
             6,937,110  
       
 
              
        Utilities 5.9%            
  5,000    
Bicent Power, LLC, Term Loan
   4.29   12/31/14     3,875,000  
  4,457    
BRSP, LLC, Term Loan
   7.50   06/24/14     4,189,570  

 

 

Van Kampen Dynamic Credit Opportunities Fund
Portfolio of Investments § October 31, 2009 (Unaudited) continued
                         
Principal                    
Amount             Stated      
(000)     Borrower   Coupon   Maturity *   Value  
 
        Utilities (continued)            
$ 22,750    
Calpine Corp., Term Loan
      3.17%   03/29/14   $ 20,844,979  
  4,853    
First Light Power Resources, Inc., Term Loan
   2.81 to 4.81   11/01/13 to 05/01/14     4,198,101  
  187    
Mach Gen, LLC, Term Loan
   2.28   02/22/13     174,300  
  3,983    
NRG Energy, Inc., Term Loan
   1.99 to 2.03   02/01/13     3,757,480  
  13,020    
Texas Competitive Electric Holdings, Co., LLC, Term Loan
   3.74 to 3.78   10/10/14     10,085,868  
  6,000    
TPF Generation Holdings, LLC, Term Loan
   4.49 to 4.53   12/15/14     5,160,000  
       
 
              
       
 
             52,285,298  
       
 
              
        Total Variable Rate Senior Loan Interests ** 107.4%     953,557,566  
       
 
              
       
 
                
        Notes 23.8%            
        Broadcasting - Cable 0.6%            
  5,000    
Kabel Deutschland GmbH (Germany)
   10.63     07/01/14     5,293,750  
       
 
              
        Chemicals, Plastics & Rubber 0.7%            
  5,000    
Cognis GmbH (Germany) (b)
   2.30   09/15/13     4,475,000  
  1,893    
Wellman, Inc. (a)(d)
   5.00   01/30/19     1,893,000  
       
 
              
       
 
             6,368,000  
       
 
              
        Construction Material 0.2%            
  2,000    
Compression Polymers Corp. (h)
   7.87   07/01/12     1,690,000  
       
 
              
        Containers, Packaging & Glass 7.6%            
€ 8,321    
Ardagh Glass Finance BV (Ireland) (b)
   8.88   07/01/13     12,490,519  

 

 

Van Kampen Dynamic Credit Opportunities Fund
Portfolio of Investments § October 31, 2009 (Unaudited) continued
                                 
Principal                          
Amount                 Stated        
(000)     Borrower   Coupon     Maturity *     Value  
 
        Containers, Packaging & Glass (continued)                
€ 9,200    
Ardagh Glass Finance (Ireland) (b)
     7.13 %     06/15/17     $ 12,016,029  
  2,000    
Berry Plastics Group, Inc. (h)
     5.03       02/15/15       1,850,000  
€ 4,500    
Impress Holdings (Netherlands) (b)
     9.25       09/15/14       6,854,214  
€ 12,000    
Impress Metal Packaging Holdings BV (Netherlands) (b)
    3.87       09/15/13       16,644,371  
€ 12,725    
Pregis Corp.
     5.74       04/15/13       17,251,089  
       
 
                      
       
 
                     67,106,222  
       
 
                      
       
Healthcare 0.8%
                        
  6,167    
Apria Healthcare Group, Inc.
     11.25       11/01/14       6,706,250  
       
 
                      
        Hotels, Motels, Inns & Gaming 0.2%                
  2,000    
Wynn Las Vegas, LLC
     6.63       12/01/14       1,910,000  
       
 
                      
        Media 0.5%                
  4,250    
Virgin Media Finance PLC (United Kingdom)
     9.50       08/15/16       4,515,625  
       
 
                      
        Mining, Steel, Iron & Non-Precious Metals 2.2%                
  18,000    
FMG Finance Pty Ltd (Australia) (b)
     10.63       09/01/16       19,845,000  
       
 
                      
        Telecommunications - Equipment & Services 5.1%                
€ 6,000    
Iesy Hessen Gmbh & Co, Kg (Germany) (b)
     3.78       04/15/13       8,565,008  
€ 4,825    
Magyar Telecom (Invtel) (Netherlands) (b)
     10.75       08/15/12       6,497,154  

 

 

Van Kampen Dynamic Credit Opportunities Fund
Portfolio of Investments § October 31, 2009 (Unaudited) continued
                                 
Principal                          
Amount                 Stated        
(000)     Borrower   Coupon     Maturity *     Value  
 
        Telecommunications - Equipment & Services (continued)                
€ 24,150    
Versatel AG (Germany) (b)
     3.52 %     06/15/14     $ 29,853,909  
       
 
                      
       
 
                     44,916,071  
       
 
                      
        Telecommunications - Local Exchange Carriers 0.1%                
  1,000    
Qwest Corp. (h)
     3.55       06/15/13       935,000  
       
 
                      
        Telecommunications - Wireless 1.7%                
  14,000    
Wind Acquisition Fin SA (Italy) (b)
     10.75       12/01/15       15,190,000  
       
 
                      
        Transportation - Cargo 3.5%                
€ 22,112    
CB Bus AB (Sweden) (d)
     9.13       08/01/12       31,239,498  
       
 
                      
        Transportation Infrastructure 0.6%                
€ 5,000    
Channel Link (United Kingdom)
     2.70       06/30/50       5,297,943  
       
 
                      
       
 
                        
        Total Notes 23.8%             211,013,359  
       
 
                      
         
Description   Value  
 
Equities 0.2%
        
Axia, Inc. (Warrants for 6,352 common shares, Expiration date 12/31/18, Acquired 09/24/08, Cost $0) (d) (g) (i)
     0  
Building Materials Holding Corp. (Warrants for 15,357 common shares, Expiration date 09/30/15, Acquired 10/09/08, Cost $0) (d) (i)
     0  
Euramax International (1,870 common shares, Acquired 7/09/09, Cost $1,962,106) (d)
     60,769  
Newhall Holding Co. (235,259 common shares, Acquired 08/24/09, Cost $2,012,043)
     435,229  
Vitruvian Exploration, LLC (76,400 common shares, Acquired 10/19/09, Cost $3,276,000) (d)
     550,080  
WCI Communities, Inc. (1,830 common shares, Acquired 09/23/09, Cost $205,427)
     128,100  
Wellman, Inc. (1,892 common shares, Acquired 02/12/09 & 6/16/09, Cost $4,958,713) (d)
     898,700  
 
      
Total Equities 0.2%
     2,072,878  
 
      
 
        
Total Long-Term Investments 131.4%
(Cost $1,368,560,826)
     1,166,643,803  
 
        
Time Deposit 3.4%
        
State Street Bank & Trust Corp. ($30,093,618 par, 0.01% coupon, dated 10/31/09, to be sold on 11/02/09 at $30,093,643) (j)
     30,093,618  
 
      
 
        
Total Investments 134.8%
(Cost $1,398,654,444)
     1,196,737,421  
 
        
Foreign Currency 0.3%
(Cost $2,660,513)
     2,640,240  
 
        
Borrowings (26.9%)
     (238,500,000 )
 
        
Liabilities in Excess of Other Assets (8.2%)
     (73,214,665 )
 
      
 
        
Net Assets 100.0%
   $ 887,662,996  
 
      
Par amounts are denominated in US currency unless otherwise noted.
 
£ -  Great Britain Pound
 
€ -  Euro

 

 

Van Kampen Dynamic Credit Opportunities Fund
Portfolio of Investments § October 31, 2009 (Unaudited) continued
Percentages are calculated as a percentage of net assets.
(a)   All or portion of this security is payment-in-kind.
 
(b)   144A-Private Placement security which is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. This security may only be resold in transactions exempt from registration which are normally those transactions with qualified institutional buyers.
 
(c)   This borrower has filed for protection in federal bankruptcy court.
 
(d)   Market value is determined in accordance with procedures established in good faith by the Board of Trustees.
 
(e)   Senior loan is past due.
 
(f)   This Senior Loan interest is non-income producing.
 
(g)   Affiliated company.
 
(h)   Variable rate security. Interest rate shown is that in effect at October 31, 2009.
 
(i)   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 less than 0.01% of the net assets of the Fund.
 
(j)   All or a portion of this security is designated in connection with unfunded loan commitments.
 
*   Senior Loans in the Fund’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 Fund’s portfolio may occur. As a result, the actual remaining maturity of Senior Loans held in the Fund’s portfolio may be substantially less than the stated maturities shown. Although the Fund is unable to accurately estimate the actual remaining maturity of individual Senior Loans, the Fund 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 Fund 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 or (iii) the certificate of deposit rate. Senior Loans are generally considered to be restricted in that the Fund ordinarily is contractually obligated to receive approval from the Agent Bank and/or Borrower prior to the disposition of a Senior Loan.
Swap agreements outstanding as of October 31, 2009:
Credit Default Swaps
                                                     
            Pay/                                     Credit
            Receive             Notional                     Rating of
        Buy/Sell   Fixed     Expiration     Amount     Upfront             Reference
Counterparty   Reference Entity   Protection   Rate     Date     (000)     Payments     Value     Equity*
Bank of America N.A.
  
Cognis GMBH
   Sell     3.900 %     12/20/09     $ 7,358     $ 0       58,370     B-
Bank of America N.A.
  
Seat Pagine Gialle S.P.A
   Sell     3.350       09/20/12       7,358       0       (1,804,828 )   B
Bank of America N.A.
  
Seat Pagine Gialle S.P.A
   Sell     3.650       12/20/12       7,358       0       (1,898,134 )   B
Citigroup
  
M-Real Oyj
   Sell     4.250       12/20/09       7,358       0       59,576     CCC+
Credit Suisse International
  
Codere Finance Luxembourg SA
   Sell     3.420       09/20/12       7,358       0       (434,207 )   B
Goldman Sachs International
   ArcelorMittal   Sell     5.400       06/20/11       7,358       0       529,164     BBB

 

 

Van Kampen Dynamic Credit Opportunities Fund
Portfolio of Investments § October 31, 2009 (Unaudited) continued
                                                     
            Pay/                                     Credit
            Receive             Notional                     Rating of
        Buy/Sell   Fixed     Expiration     Amount     Upfront             Reference
Counterparty   Reference Entity   Protection   Rate     Date     (000)     Payments     Value     Equity*
Goldman Sachs International
   ArcelorMittal   Sell     5.650 %     06/20/12     $ 7,358     $ 0       768,099     BBB
Goldman Sachs International
   ArcelorMittal   Sell     5.750       06/20/10       7,358       0       283,187     BBB
Goldman Sachs International
  
Calpine Corporation
   Sell     5.000       03/20/10       1,500       (165,000 )     13,211     B
Goldman Sachs International
  
Calpine Corporation
   Sell     5.000       03/20/11       2,000       (65,000 )     (28,496 )   B
Goldman Sachs International
  
CDX.NA.HY.9
   Sell     3.750       12/20/12       17,200       (715,500 )     (909,583 )   NR
Goldman Sachs International
  
Citgo Petroleum Corp.
   Sell     4.150       12/20/10       5,000       0       (100,625 )   BB-
Goldman Sachs International
  
Gala Group Finance
   Sell     3.450       12/20/12       7,358       0       (768,483 )   NR
Goldman Sachs International
  
Gala Group Finance
   Sell     4.150       03/20/13       7,358       0       (728,314 )   NR
Goldman Sachs International
  
Grohe Holding GMBH
   Sell     4.250       12/20/09       14,717       0       51,452     B-
Goldman Sachs International
  
LCDX.NA.10
   Sell     3.250       06/20/13       49,800       (5,341,000 )     (1,404,775 )   NR
Goldman Sachs International
   LCDX9    Sell     2.250       12/20/12       42,000       (3,383,000 )     (1,898,750 )   NR
Goldman Sachs International
  
Peermont Global
   Sell     3.500       09/20/12       7,358       0       (583,503 )   B
Goldman Sachs International
  
Texas Competitive Electric
   Sell     2.850       06/20/10       5,000       0       (148,950 )   B-
Goldman Sachs International
  
Texas Competitive Electric
   Sell     5.000       06/20/10       3,000       (97,500 )     (43,334 )   B-
Goldman Sachs International
  
UPC Holding
   Sell     3.450       09/20/12       7,358       0       (110,238 )   B+
Goldman Sachs International
   Xstrata PLC   Sell     5.800       06/20/10       7,358       0       293,287     BBB
UBS AG
   CDX.NA.HY.10   Sell     5.000       06/20/13       17,400       (1,128,250 )     (449,567 )   NR
UBS AG
   CDX.NA.HY.9   Sell     3.750       12/20/12       17,200       (715,500 )     (909,582 )   NR
 
                                              
Total Credit Default Swaps
                       $ 270,471     $ (11,610,750 )   $ (10,165,023 )    
 
                                              

 

 

Van Kampen Dynamic Credit Opportunities Fund
Portfolio of Investments § October 31, 2009 (Unaudited) continued
         
Swap Collateral Pledged to Counterparty        
Bank of America N.A.
     4,453,000  
Citigroup
     211,000  
Credit Suisse International
     848,000  
Goldman Sachs International
     1,213,000  
UBS AG
     4,665,000  
 
      
Total Swap Collateral Pledged
   $ 11,390,000  
 
      
Total Swap Agreements
   $ 1,224,977  
 
      
 
NR   – Not Rated
 
*   Credit ratings as issued by Standard & Poor’s. (Unaudited)
Forward foreign currency contracts outstanding as of October 31, 2009:
                         
                    Unrealized  
                    Appreciation/  
  In Exchange for     Current Value     Depreciation  
Long Contracts:
                    
Euro
                        
8,008,456 expiring 11/12/09
   US$       $ 11,785,411     $ (104,848 )
1,259,300 expiring 11/12/09
   US$         1,853,212       (478 )
317,125 expiring 11/12/09
   US$         466,688       (6,647 )
4,900,000 expiring 11/12/09
   US$         7,210,942       (28,808 )
4,525,000 expiring 11/12/09
   US$         6,659,084       (49,228 )
1,260,072 expiring 11/12/09
   US$         1,854,348       (21,740 )
 
                      
 
                     (211,749 )
 
                      
Short Contracts:
                        
Euro
                        
3,746,170 expiring 11/12/09
   US$       5,512,942       110,808  
2,715,141 expiring 11/12/09
   US$       3,995,658       76,470  
3,600,000 expiring 11/12/09
   US$       5,297,835       76,180  
215,513,345 expiring 11/12/09
   US$       317,153,933       352,827  
 
                      
 
                     616,285  
 
                      
Pound Sterling
                        
1,700,288 expiring 11/12/09
   US$       2,790,433       (87,485 )
 
                      
Total Short Contracts
                     528,800  
 
                      
Total Forward Foreign Currency Contracts           $ 317,051  
 
                      
         
Ratings Allocation as of 10/31/09 (Unaudited)        
BBB/Baa
     1.3 %
BB/Ba
     24.4 %
B/B
     35.9 %
CCC/Caa
     7.0 %
CC/Ca
     0.1 %
C/C
     0.7 %
Non-Rated
     30.6 %
Ratings allocations are as a percentage of debt obligations. Ratings allocations based upon ratings as issued by Standard and Poor’s and Moody’s, respectively. Bank Loans rated below BBB by Standard and Poor’s or Baa by Moody’s are considered to be below investment grade.
Summary of Long-Term Investments by Country Classification (Unaudited)
                 
            Percentage of
            Long-Term
       Country   Value   Investment
United States
   $ 711,086,845       61.0 %
Germany
     108,791,422       9.3  
United Kingdom
     87,375,882       7.5  
Netherlands
     44,800,141       3.9  
Sweden
     33,008,656       2.8  
Greece
     26,649,134       2.3  
Ireland
     24,506,548       2.1  

 

 

Van Kampen Dynamic Credit Opportunities Fund
Portfolio of Investments § October 31, 2009 (Unaudited) continued
                 
            Percentage of
            Long-Term
       Country   Value   Investment
Denmark
     24,403,090       2.1  
Belgium
     22,587,272       1.9  
Bulgaria
     19,867,287       1.7  
Australia
     19,845,000       1.7  
Italy
     15,190,000       1.3  
Spain
     13,127,993       1.1  
Canada
     9,169,907       0.8  
Cayman Islands
     6,234,626       0.5  
     
 
   $ 1,166,643,803       100.0 %
     
Security Valuation The Fund’s loans and debt obligations are valued by the Fund following valuation guidelines established and periodically reviewed by the Fund’s Board of Trustees. Under the valuation guidelines, loans and debt obligations 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, loans and debt obligations are valued, where possible, using independent market indicators provided by independent pricing sources approved by the Board of Trustees. Other loans and debt obligations 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 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 loans in the Fund’s portfolio. The fair value of loans are reviewed and approved by the Fund’s Valuation Committee and the Board of Trustees. Forward foreign currency contracts are valued using quoted foreign exchange rates. Credit default swaps are valued using quotations obtained from brokers. 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 Fund adopted the provisions of the FASB Staff Position Paper No. FAS 133-1 and FIN 45-4, Disclosures about Credit Derivatives and Certain Guarantees: An Amendment of FASB Statement No. 133 and FASB Interpretation No. 45 (“FSP FAS 133-1 and FIN 45-4”), effective November 30, 2008. FSP FAS 133-1 and FIN 45-4 requires the seller of credit derivatives to provide additional disclosure about its credit derivatives.
The Fund may enter into credit default swap contracts, a type of credit derivative, for hedging purposes or to gain exposure to a credit or index of credits in which the Fund may otherwise invest. A credit default swap is an agreement between two parties to exchange the credit risk of an issuer or index of issuers. A buyer of a credit default swap is said to buy protection by paying periodic fees in return for a contingent payment from the seller if the issuer has a credit event such as bankruptcy, a failure to pay outstanding obligations or deteriorating credit while the swap is outstanding. A seller of a credit default swap is said to sell protection and thus collects the periodic fees and profits if the credit of the issuer remains stable or improves while the swap is outstanding. The seller in a credit default swap contract would be required to pay an agreed-upon amount to the buyer in the event of an adverse credit event of the issuer. This agreed-upon amount approximates the notional amount of the swap as disclosed in the table following the Portfolio of Investments and is estimated to be the maximum potential future payment that the seller could be required to make under the credit default swap contract. In the event of an adverse credit event, the seller generally does not have any contractual remedies against the issuer or any other third party. However, if a physical settlement is elected, the seller would receive the defaulted credit and, as a result, become a creditor of the issuer.
The current credit rating of each individual issuer is listed in the table following the Portfolio of Investments and serves as an indicator of the current status of the payment/performance risk of the credit derivative. Alternatively, for credit default swaps on an index of credits, the quoted market prices and current values serve as an indicator of the current status of the payment/performance risk of the credit derivative. Generally, lower credit ratings and increasing market values, in absolute terms, represent a deterioration of the credit and a greater likelihood of an adverse credit event of the issuer.
Credit default swaps may involve greater risks than if a Fund had invested in the issuer directly. Credit default swaps are subject to general market risk, counterparty risk and credit risk. Swap agreements are not entered into or traded on exchanges and there is no central clearing or guaranty function for swaps. Therefore, swaps are subject to the risk of default or non-performance by the counterparty. If there is a default by the counterparty to a swap agreement, the Fund will have contractual remedies pursuant to the agreements related to the transaction. Counterparties are required to pledge collateral daily (based on the valuation of each swap) on behalf of the Fund with a value approximately equal to the amount of any unrealized gain. Reciprocally, when the Fund has an unrealized loss on a swap contract, the Fund has instructed the custodian to pledge cash or liquid securities as collateral with a value approximately equal to the amount of the unrealized loss. Collateral pledges are monitored and subsequently adjusted if and when the swap valuations fluctuate. Cash collateral is disclosed in the table following the Portfolio of Investments. For cash collateral received, the Fund pays a monthly fee to the counterparty based on the effective rate for Federal Funds.
Fair Value Measurements Financial Accounting Standards Board Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures (ASC 820) (formerly known as FAS 157), defines fair value as the price that the Fund would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. ACS 820 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund’s investments. The inputs are summarized in the three broad levels listed below.
Level 1 — quoted prices in active markets for identical investments
Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used as of October 31, 2009 in valuing the Fund’s investments carried at value.
                                 
    Level 1   Level 2   Level 3    
                    Significant    
            Other Significant   Unobservable    
Investment Type   Quoted Prices   Observable Inputs   Inputs   Total
 
Investments in an Asset Position:
                                
Variable Rate Senior Loan Interests
     —       921,586,433       31,971,132       953,557,565  
Notes
     —       177,880,861       33,132,498       211,013,359  
Equities
                                
Buildings & Real Estate
     563,329       —       —       563,329  
Chemicals,Plastics & Rubber
     —       —       898,700       898,700  
Diversified Manufacturing
     —       —       60,769       60,769  
Natural Resources
     —       —       550,080       550,080  
Short-term Investments
     —       30,093,618       —       30,093,618  
Forward Foreign Currency Contracts
     —       616,285       —       616,285  
Credit Default Swap
     —       2,056,346       —       2,056,346  
Unfunded Commitments
     —       11,303       —       11,303  
 
Total Assets
     563,329       1,132,244,846       66,613,179       1,199,421,354  
 
 
                                
Investment in a Liability Position:
                                
Forward Foreign Currency Contracts
     —       (299,234 )     —       (299,234 )
Credit Default Swap
     —       (10,224,599 )     —       (10,224,599 )
Unfunded Commitments
     —       (3,785,307 )     —       (3,785,307 )
 
Total Liabilities
     —       (14,309,140 )     —       (14,309,140 )
 
Following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:
                                                                 
    Variable                            
    Rate                            
    Senior                            
    Loan           Chemicals   Construction   Diversified   Natural       Unfunded
    Interest   Notes   Plastics & Rubber   Materials   Manufacturing   Resources   Total   Commitments
Balance as of August 1, 2009
     20,874,117       37,161,648       1,103,660       14,163       95,360       —       59,248.948       (13,947 )
Accrued Discounts/Premiums
     75,103       211,750       —       —       —       —       286,853        
Realized Gain/Loss
     (813,065 )     (180,171 )     —       29,835       —       —       (963,401 )      
Change in Unrealized Appreciation/Depreciation
     432,143       3,370,096       (204,960 )     —       (34,591 )     (2,725,920 )     836,768       13,947
Net Purchases/Sales
     13,217,379       (7,430,825 )     —       (43,998 )     —       3,276,000       9,018,556        
Net Transfers In and/or Out of Level 3*
     (1,814,545 )     —       —       —       —       —       (1,814,545 )      
     
Balance as of October 31, 2009
     31,971,132       33,132,498       898,700       —       60,769       550,080       66,613,179       —  
     
Net Change in Unrealized Appreciation/Depreciation from Investments Still Held as of 10/31/09
                                                     2,061        
 
*   The value of Net Transfers In and/or Out of Level 3 was measured using the market value as of the beginning of the period for transfer in and the market value as of the end of the period for transfers out.

 

 

Item 2. Controls and Procedures.
(a) The Fund’s principal executive officer and principal financial officer have concluded that the Fund’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Fund in this Form N-Q 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 Fund’s internal control over financial reporting that occurred during the registrant’s fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Fund’s internal control over financial reporting.
Item 3. Exhibits.
(a) A certification for the Principal Executive Officer of the registrant is attached hereto as part of EX-99.cert.
(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 Dynamic Credit Opportunities Fund    
 
        
By:
Name:
  /s/ Edward C. Wood III
 
Edward C. Wood III 		   
Title:
  Principal Executive Officer    
Date:
  December 17, 2009    
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:
Name:
  /s/ Edward C. Wood III
 
Edward C. Wood III 		   
Title:
  Principal Executive Officer    
Date:
  December 17, 2009    
 
        
By:
Name:
  /s/ Stuart N. Schuldt
 
Stuart N. Schuldt 		   
Title:
  Principal Financial Officer    
Date:
  December 17, 2009