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Van Kampen Mutual Funds

In this publication, we'll be discussing Van Kampen mutual funds. Our review will include a brief background of the company, and the services Van Kampen provides its clients. Next we'll talk about fee structures and investment returns. Finally, we'll review some of the top performing funds you'll find at Van Kampen.

Van Kampen Family of Mutual Funds

Van Kampen consists of a large and diversified network of unaffiliated broker-dealers, banks and thrifts, insurance companies, and financial planners. This network includes over 250,000 financial advisors, with a smaller number of retail distributors accounting for a large proportion of the Van Kampen sales network.

Additional Resources

Van Kampen, offers a full array of financial planning products including 401k plan administration, Roth IRAs, Traditional IRAs, and 529 plans. As part of Morgan Stanley, Van Kampen was teamed up with one of the largest asset management firms in the world with $740 billion under management in 2008. Van Kampen manages approximately $138 billion of that value. The company offers investors a full array of investment strategies such as growth, fixed income, global investment, and passive management.

In October 2009, Invesco announced it had entered into a definitive agreement to acquire Van Kampen from Morgan Stanley. The transaction was valued at $1.5 billion in cash and stock. At the time of purchase, Van Kampen had $119 billion in assets under management.

The information below was the last mutual fund review taken of that company.

Van Kampen Funds Fee Structure and Returns

Morningstar ratings indicate the expense ratio for mutual funds at Van Kampen range from Average for their domestic stock funds (1.40%), international stock (1.70%), and municipal bond (1.13%) funds to Above Average for their taxable bond funds (1.42%). Van Kampen assets are held in a typical balance of domestic stocks (49.8%), municipal bonds (12.0%), taxable bonds (7.5%) and international stocks (6.1%). (August 2008)

The minimum investment at Van Kampen is $1,000. In addition, nearly all of their funds carry a load, with only 8.1% of their assets in no-load mutual funds. As of August 2008, the average return for the Van Kampen family of mutual funds was 6.50% over the last five years.

Top Rated Van Kampen Mutual Funds

As was the case with Pioneer, at least one of the three top rated funds at Van Kampen is a bond fund. Unfortunately, all three of these funds carry a front load, and the top rated fund is currently closed to new investors. With that in mind, here is a list of the top three rated funds at Van Kampen:

Van Kampen Small Cap Growth A (VASCX) - with $654 million in assets, this small cap growth fund places emphasis on the services industry (48% of assets). Top holdings include Central European Distribution Corporation, FTI Consulting, Inc., and Net 1 UEPS Technologies, Inc. The expense ratio for this fund is 1.38%, and it carries a front-load of 5.75%. The minimum investment is $1,000, and the average return over the last five years was 10.83%. (August 2008)
Van Kampen High-Yield Municipal A (ACTHX) - with nearly $4.5 billion in assets, this high yield municipal bond fund has nearly 66% of its money in junk bonds. Top holdings include Bay Area Toll Authority, Louisiana Buckeye, and Ohio Tobacco Settlement. The expense ratio for the fund is 0.84%, and it carries a front load of 4.75%. This fund requires a minimum investment of $1,000, and the average return over the last five years was 4.07%. (August 2008)
Van Kampen Exchange (ACEHX) - with nearly $440 million in assets, this large blend mutual fund emphasizes the manufacturing sector of the economy (64.97% of assets), with a concentration in the energy industry (40.23%). Top holdings include ExxonMobil Corporation, Air Products and Chemicals, Inc., and Hess Corporation. The expense ratio for the fund is 0.46%, and it is a no load mutual fund. There is no minimum investment, and the average return over the last five years was 8.64%. (August 2008)

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