N-Q 1 c54017nvq.htm FORM N-Q 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 811-01570
Van Kampen Comstock 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: 12/31
Date of reporting period: 9/30/09
 
 

 

 

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 Comstock Fund
Portfolio of Investments n September 30, 2009 (Unaudited)
                 
    Number of        
Description   Shares     Value  
 
 
                
Common Stocks 97.1%
                
Aerospace & Defense 0.4%
                
Honeywell International, Inc.
     891,000     $ 33,100,650  
 
              
 
                
Aluminum 1.3%
                
Alcoa, Inc.
     8,441,900       110,757,728  
 
              
 
                
Asset Management & Custody Banks 1.9%
                
Bank of New York Mellon Corp.
     5,545,728       160,770,655  
 
              
 
                
Broadcasting & Cable TV 5.1%
                
Comcast Corp., Class A
    19,334,110       326,553,118  
Liberty Media Corp. — Entertainment, Class A (a)
    3,239,040       100,766,534  
 
              
 
             427,319,652  
 
              
 
                
Broadcasting — Diversified 1.1%
                
Time Warner Cable, Inc.
     2,184,740       94,140,447  
 
              
 
                
Communications Equipment 1.4%
                
Cisco Systems, Inc. (a)
    4,820,100       113,465,154  
 
              
 
                
Computer Hardware 4.2%
                
Dell, Inc. (a)
    11,471,318       175,052,313  
Hewlett-Packard Co.
     2,052,400       96,893,804  
IBM Corp.
     662,300       79,217,703  
 
              
 
             351,163,820  
 
              
 
                
Data Processing & Outsourced Services 0.3%
                
Western Union Co.
     1,410,500       26,686,660  
 
              
 
                
Department Stores 1.8%
                
J.C. Penney Co., Inc.
     2,147,600       72,481,500  
Macy’s, Inc.
     4,267,656       78,055,428  
 
              
 
             150,536,928  
 
              
 
                
Diversified Banks 1.5%
                
U.S. Bancorp
    2,315,400       50,614,644  

 

 

Van Kampen Comstock Fund
Portfolio of Investments n September 30, 2009 (Unaudited) continued
                 
    Number of        
Description   Shares     Value  
 
 
                
Diversified Banks (continued)
                
Wells Fargo & Co.
     2,585,500     $ 72,859,390  
 
              
 
             123,474,034  
 
              
 
                
Diversified Chemicals 0.9%
                
Du Pont (E.I.) de Nemours & Co.
     2,419,166       77,751,995  
 
              
 
                
Drug Retail 1.2%
                
CVS Caremark Corp.
     2,818,600       100,736,764  
 
              
 
                
Electrical Components & Equipment 0.5%
                
Emerson Electric Co.
     1,105,600       44,312,448  
 
              
 
                
Electronic Equipment Manufacturers 0.2%
                
Cognex Corp.
     1,223,187       20,035,803  
 
              
 
                
Electronic Manufacturing Services 0.3%
                
Flextronics International Ltd. (Singapore) (a)
     2,928,717       21,848,229  
 
              
 
                
General Merchandise Stores 0.4%
                
Target Corp.
     730,600       34,104,408  
 
              
 
                
Health Care Distributors 1.3%
                
Cardinal Health, Inc.
     4,163,600       111,584,480  
 
              
 
                
Health Care Equipment 1.1%
                
Boston Scientific Corp. (a)
     8,829,500       93,504,405  
 
              
 
                
Home Improvement Retail 1.6%
                
Home Depot, Inc.
     2,679,200       71,373,888  
Lowe’s Cos., Inc.
     3,028,900       63,425,166  
 
              
 
             134,799,054  
 
              
 
                
Household Products 0.4%
                
Procter & Gamble Co.
     537,000       31,103,040  
 
              
 
                
Hypermarkets & Super Centers 2.1%
                
Wal-Mart Stores, Inc.
     3,518,900       172,742,801  
 
              

 

 

Van Kampen Comstock Fund
Portfolio of Investments n September 30, 2009 (Unaudited) continued
                 
    Number of        
Description   Shares     Value  
 
 
                
Industrial Conglomerates 1.3%
                
General Electric Co.
     6,420,200     $ 105,419,684  
 
              
 
                
Industrial Machinery 0.4%
                
Ingersoll-Rand PLC (Ireland)
     1,042,900       31,985,743  
 
              
 
                
Integrated Oil & Gas 4.4%
                
BP PLC — ADR (United Kingdom)
     1,137,000       60,522,510  
Chevron Corp.
     1,707,500       120,259,225  
ConocoPhillips
     1,296,000       58,527,360  
Royal Dutch Shell PLC — ADR (United Kingdom)
     1,071,000       61,250,490  
Total SA — ADR (France)
     1,173,900       69,565,314  
 
              
 
             370,124,899  
 
              
 
                
Integrated Telecommunication Services 4.1%
                
AT&T, Inc.
     4,969,150       134,216,742  
Verizon Communications, Inc.
     6,784,200       205,357,734  
 
              
 
             339,574,476  
 
              
 
                
Internet Software & Services 3.7%
                
eBay, Inc. (a)
     11,309,600       267,019,656  
Yahoo!, Inc. (a)
     2,192,900       39,055,549  
 
              
 
             306,075,205  
 
              
 
                
Investment Banking & Brokerage 0.8%
                
Goldman Sachs Group, Inc.
     360,200       66,402,870  
 
              
 
                
IT Consulting & Other Services 0.5%
                
Accenture PLC, Class A (Ireland)
     1,092,700       40,724,929  
 
              
 
                
Life & Health Insurance 2.5%
                
Aflac, Inc.
     797,500       34,085,150  
MetLife, Inc.
     2,699,200       102,758,544  
Torchmark Corp.
     1,714,547       74,462,776  
 
              
 
             211,306,470  
 
              
Managed Health Care 1.0%
                
UnitedHealth Group, Inc.
     1,586,000       39,713,440  

 

 

Van Kampen Comstock Fund
Portfolio of Investments n September 30, 2009 (Unaudited) continued
                 
    Number of        
Description   Shares     Value  
 
 
                
Managed Health Care (continued)
                
WellPoint, Inc. (a)
     979,400     $ 46,384,384  
 
              
 
             86,097,824  
 
              
 
                
Movies & Entertainment 8.0%
                
News Corp., Class B
     9,299,300       130,097,207  
Time Warner, Inc.
     6,178,400       177,814,352  
Viacom, Inc., Class B (a)
     12,964,850       363,534,394  
 
              
 
             671,445,953  
 
              
 
                
Oil & Gas Equipment & Services 1.6%
                
Halliburton Co.
     4,872,100       132,131,352  
 
              
 
                
Other Diversified Financial Services 4.6%
                
Bank of America Corp.
     7,765,765       131,396,744  
JPMorgan Chase & Co.
     5,831,300       255,527,566  
 
              
 
             386,924,310  
 
              
 
                
Packaged Foods & Meats 5.2%
                
Cadbury PLC — ADR (United Kingdom)
     1,934,624       99,384,537  
Kraft Foods, Inc., Class A
     7,032,043       184,731,769  
Unilever NV (Netherlands)
     5,136,400       148,236,504  
 
              
 
             432,352,810  
 
              
 
                
Paper Products 3.2%
                
International Paper Co.
     11,844,836       263,310,704  
 
              
 
                
Pharmaceuticals 11.3%
                
Abbott Laboratories
     1,096,400       54,238,908  
Bristol-Myers Squibb Co.
     9,423,600       212,219,472  
Eli Lilly & Co.
     2,476,700       81,805,401  
GlaxoSmithKline PLC — ADR (United Kingdom)
     911,500       36,013,365  
Pfizer, Inc.
     9,528,900       157,703,295  
Roche Holdings AG — ADR (Switzerland)
     1,461,516       58,980,355  
Schering-Plough Corp.
     7,576,700       214,041,775  
Wyeth
     2,637,000       128,105,460  
 
              
 
             943,108,031  
 
              

 

 

Van Kampen Comstock Fund
Portfolio of Investments n September 30, 2009 (Unaudited) continued
                 
    Number of        
Description   Shares     Value  
 
 
                
 
                
Property & Casualty Insurance 8.1%
                
Berkshire Hathaway, Inc., Class A (a)
     685     $ 69,185,000  
Berkshire Hathaway, Inc., Class B (a)
     1,070       3,555,610  
Chubb Corp.
     8,112,440       408,948,100  
Travelers Cos., Inc.
     3,996,600       196,752,618  
 
              
 
             678,441,328  
 
              
 
                
Regional Banks 1.0%
                
PNC Financial Services Group, Inc.
     1,770,200       86,014,018  
 
              
 
                
Semiconductor Equipment 1.0%
                
KLA-Tencor Corp.
     2,282,200       81,839,692  
 
              
 
                
Semiconductors 1.3%
                
Intel Corp.
     5,530,092       108,223,901  
 
              
 
                
Soft Drinks 2.1%
                
Coca-Cola Co.
     2,254,200       121,050,540  
Dr. Pepper Snapple Group, Inc. (a)
     1,908,944       54,882,140  
 
              
 
             175,932,680  
 
              
 
                
Systems Software 0.3%
                
Microsoft Corp.
     1,080,100       27,963,789  
 
              
 
                
Tobacco 1.7%
                
Altria Group, Inc.
     3,322,400       59,171,944  
Philip Morris International, Inc.
     1,716,000       83,637,840  
 
              
 
             142,809,784  
 
              
 
                
Total Long-Term Investments 97.1%
                
(Cost $8,798,436,511)
             8,122,149,607  
 
              
 
                
Repurchase Agreements 3.3%
                
Banc of America Securities ($66,411,035 par collateralized by U.S. Government obligations in a pooled cash account, interest rate of 0.04%, dated 09/30/09, to be sold on 10/01/09 at $66,411,108)
             66,411,035  

 

 

Van Kampen Comstock Fund
Portfolio of Investments n September 30, 2009 (Unaudited) continued
                 
             
Description         Value  
 
 
                
Repurchase Agreements (continued)
                
JPMorgan Chase & Co. ($200,241,514 par collateralized by U.S. Government obligations in a pooled cash account, interest rate of 0.05%, dated 09/30/09, to be sold on 10/01/09 at $200,241,792)
           $ 200,241,514  
State Street Bank & Trust Co. ($11,170,451 par collateralized by U.S. Government obligations in a pooled cash account, interest rate of 0.01%, dated 09/30/09, to be sold on 10/01/09 at $11,170,454)
             11,170,451  
 
              
 
                
Total Repurchase Agreements 3.3%
                
(Cost $277,823,000)
             277,823,000  
 
              
 
                
Total Investments 100.4%
                
(Cost $9,076,259,511)
             8,399,972,607  
 
                
Liabilities in Excess of Other Assets (0.4%)
             (30,747,452 )
 
              
 
                
Net Assets 100.0%
           $ 8,369,225,155  
 
              
    Percentages are calculated as a percentage of net assets.
  (a)   Non-income producing security.
    ADR — American Depositary Receipt
Security Valuation Investments in securities listed on a securities exchange are valued at their last sale price as of the close of such securities exchange. Equity securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Fixed income investments are valued by an independent pricing service using the mean of the last reported bid and asked prices. Unlisted and listed securities for which the last sale price is not available are valued at the mean of the last reported bid and asked prices. For those securities where quotations or prices are not readily available, valuations are determined in accordance with procedures established in good faith by the Board of Trustees. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer’s financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances. Short-term securities with remaining maturities of 60 days or less are valued at amortized cost, which approximates fair value.

 

 

Van Kampen Comstock Fund
Portfolio of Investments n September 30, 2009 (Unaudited) continued
Fair Value Measurements Financial Accounting Standards Board Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosure (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. ASC 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 September 30, 2009 in valuing the Fund’s investments carried at value.

 

 

Van Kampen Comstock Fund
Portfolio of Investments n September 30, 2009 (Unaudited) continued
                                 
    Level 1   Level 2   Level 3    
                     
            Other        
            Significant   Significant    
            Observable   Unobservable    
Investment   Quoted Prices   Inputs   Inputs   Total
 
Investments in an Asset Position
                                
Common Stocks
                                
Aerospace & Defense
   $ 33,100,650     $ —     $ —     $ 33,100,650  
Aluminum
     110,757,728       —       —       110,757,728  
Asset Management & Custody Banks
     160,770,655       —       —       160,770,655  
Broadcasting & Cable TV
     427,319,652       —       —       427,319,652  
Broadcasting — Diversified
     94,140,447       —       —       94,140,447  
Communications Equipment
     113,465,154       —       —       113,465,154  
Computer Hardware
     351,163,820       —       —       351,163,820  
Data Processing & Outsourced Services
     26,686,660       —       —       26,686,660  
Department Stores
     150,536,928       —       —       150,536,928  
Diversified Banks
     123,474,034       —       —       123,474,034  
Diversified Chemicals
     77,751,995       —       —       77,751,995  
Drug Retail
     100,736,764       —       —       100,736,764  
Electrical Components & Equipment
     44,312,448       —       —       44,312,448  
Electronic Equipment Manufacturers
     20,035,803       —       —       20,035,803  
Electronic Manufacturing Services
     21,848,229       —       —       21,848,229  

 

 

Van Kampen Comstock Fund
Portfolio of Investments n September 30, 2009 (Unaudited) continued
                                 
    Level 1   Level 2   Level 3    
                     
            Other        
            Significant   Significant    
            Observable   Unobservable    
Investment   Quoted Prices   Inputs   Inputs   Total
 
General Merchandise Stores
   $ 34,104,408     $ —     $ —     $ 34,104,408  
Health Care Distributors
     111,584,480       —       —       111,584,480  
Health Care Equipment
     93,504,405       —       —       93,504,405  
Home Improvement Retail
     134,799,054       —       —       134,799,054  
Household Products
     31,103,040       —       —       31,103,040  
Hypermarkets & Super Centers
     172,742,801       —       —       172,742,801  
Industrial Conglomerates
     105,419,684       —       —       105,419,684  
Industrial Machinery
     31,985,743       —       —       31,985,743  
Integrated Oil & Gas
     370,124,899       —       —       370,124,899  
Integrated Telecommunication Services
     339,574,476       —       —       339,574,476  
Internet Software & Services
     306,075,205       —       —       306,075,205  
Investment Banking & Brokerage
     66,402,870       —       —       66,402,870  
IT Consulting & Other Services
     40,724,929       —       —       40,724,929  
Life & Health Insurance
     211,306,470       —       —       211,306,470  
Managed Health Care
     86,097,824       —       —       86,097,824  
Movies & Entertainment
     671,445,953       —       —       671,445,953  
Oil & Gas Equipment & Services
     132,131,352       —       —       132,131,352  
Other Diversified Financial Services
     386,924,310       —       —       386,924,310  
Packaged Foods & Meats
     332,968,273       99,384,537       —       432,352,810  

 

 

Van Kampen Comstock Fund
Portfolio of Investments n September 30, 2009 (Unaudited) continued
                                 
    Level 1   Level 2   Level 3    
                     
            Other        
            Significant   Significant    
            Observable   Unobservable    
Investment   Quoted Prices   Inputs   Inputs   Total
 
Paper Products
   $ 263,310,704     $ —     $ —     $ 263,310,704  
Pharmaceuticals
     884,127,676       58,980,355       —       943,108,031  
Property & Casualty Insurance
     678,441,328       —       —       678,441,328  
Regional Banks
     86,014,018       —       —       86,014,018  
Semiconductor Equipment
     81,839,692       —       —       81,839,692  
Semiconductors
     108,223,901       —       —       108,223,901  
Soft Drinks
     175,932,680       —       —       175,932,680  
Systems Software
     27,963,789       —       —       27,963,789  
Tobacco
     142,809,784       —               142,809,784  
Repurchase Agreements
             277,823,000       —       277,823,000  
     
Total Investments in an Asset Position
   $ 7,963,784,715     $ 436,187,892     $ —     $ 8,399,972,607  
     

 

 

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 Comstock Fund
         
By:
  /s/ Edward C. Wood III
 
    
Name:
  Edward C. Wood III    
Title:
  Principal Executive Officer    
Date:
  November 19, 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:
  November 19, 2009    
         
By:
Name:
  /s/ Stuart N. Schuldt
 
Stuart N. Schuldt 		   
Title:
  Principal Financial Officer    
Date:
  November 19, 2009