N-Q 1 c57604nvq.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: 3/31/10
 
 

 

 

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 March 31, 2010 (Unaudited)
                 
    Number of        
Description   Shares     Value  
 
Common Stocks 98.1%
                
Aerospace & Defense 0.8%
                
Honeywell International, Inc.
     1,571,700     $ 71,150,859  
 
              
 
                
Aluminum 0.8%
                
Alcoa, Inc.
     4,935,700       70,284,368  
 
              
 
                
Asset Management & Custody Banks 2.4%
                
Bank of New York Mellon Corp.
     5,545,728       171,252,081  
State Street Corp.
     765,800       34,568,212  
 
              
 
             205,820,293  
 
              
Broadcasting & Cable TV 4.2%
                
Comcast Corp., Class A
    19,334,110       363,867,950  
 
              
 
                
Broadcasting — Diversified 2.6%
                
DIRECTV, Class A (a)
    3,239,590       109,530,538  
Time Warner Cable, Inc.
     2,184,740       116,468,489  
 
              
 
             225,999,027  
 
              
Communications Equipment 1.1%
                
Cisco Systems, Inc. (a)
    3,713,500       96,662,405  
 
              
 
                
Computer Hardware 2.0%
                
Dell, Inc. (a)
    5,409,618       81,198,366  
Hewlett-Packard Co.
     1,790,100       95,143,815  
 
              
 
             176,342,181  
 
              
Data Processing & Outsourced Services 0.3%
                
Western Union Co.
     1,410,500       23,922,080  
 
              
 
                
Department Stores 1.3%
                
J.C. Penney Co., Inc.
     2,185,200       70,297,884  
Macy’s, Inc.
     1,961,456       42,700,897  
 
              
 
             112,998,781  
 
              
Diversified Banks 1.9%
                
U.S. Bancorp
     2,315,400       59,922,552  

 

 

Van Kampen Comstock Fund
Portfolio of Investments n March 31, 2010 (Unaudited) continued
                 
    Number of        
Description   Shares     Value  
 
Diversified Banks (continued)
                
Wells Fargo & Co.
     3,423,500     $ 106,539,320  
 
              
 
             166,461,872  
 
              
Diversified Chemicals 0.7%
                
Du Pont (E.I.) de Nemours & Co.
     1,609,966       59,955,134  
 
              
 
                
Drug Retail 1.2%
                
CVS Caremark Corp.
     2,818,600       103,048,016  
 
              
 
                
Electrical Components & Equipment 0.6%
                
Emerson Electric Co.
     1,105,600       55,655,904  
 
              
 
                
Electronic Equipment Manufacturers 0.3%
                
Cognex Corp.
     1,223,187       22,616,728  
 
              
 
                
Electronic Manufacturing Services 0.3%
                
Flextronics International Ltd. (Singapore) (a)
     2,928,717       22,961,141  
 
              
 
                
General Merchandise Stores 0.4%
                
Target Corp.
     650,100       34,195,260  
 
              
 
                
Health Care Distributors 1.7%
                
Cardinal Health, Inc.
     4,042,700       145,658,481  
 
              
 
                
Health Care Equipment 0.4%
                
Boston Scientific Corp. (a)
     4,382,100       31,638,762  
 
              
 
                
Home Improvement Retail 2.0%
                
Home Depot, Inc.
     2,836,800       91,770,480  
Lowe’s Cos., Inc.
     3,227,800       78,241,872  
 
              
 
             170,012,352  
 
              
Household Products 0.4%
                
Procter & Gamble Co.
     578,800       36,620,676  
 
              
 
                
Hypermarkets & Super Centers 2.3%
                
Wal-Mart Stores, Inc.
     3,518,900       195,650,840  
 
              

 

 

Van Kampen Comstock Fund
Portfolio of Investments n March 31, 2010 (Unaudited) continued
                 
    Number of        
Description   Shares     Value  
 
Industrial Conglomerates 1.3%
                
General Electric Co.
     6,420,200     $ 116,847,640  
 
              
 
                
Industrial Machinery 0.9%
                
Ingersoll-Rand PLC (Ireland)
     2,311,600       80,605,492  
 
              
 
                
Integrated Oil & Gas 5.6%
                
BP PLC — ADR (United Kingdom)
     1,137,000       64,888,590  
Chevron Corp.
     1,964,400       148,960,452  
ConocoPhillips
     2,296,000       117,486,320  
Royal Dutch Shell PLC — ADR (United Kingdom)
     1,483,800       85,852,668  
Total SA — ADR (France)
     1,173,900       68,109,678  
 
              
 
             485,297,708  
 
              
Integrated Telecommunication Services 3.6%
                
AT&T, Inc.
     4,969,150       128,402,836  
Verizon Communications, Inc.
     5,910,400       183,340,608  
 
              
 
             311,743,444  
 
              
Internet Software & Services 4.3%
                
eBay, Inc. (a)
     9,334,700       251,570,165  
Yahoo!, Inc. (a)
     7,089,600       117,191,088  
 
              
 
             368,761,253  
 
              
Investment Banking & Brokerage 0.9%
                
Goldman Sachs Group, Inc.
     448,600       76,544,618  
 
              
 
                
IT Consulting & Other Services 0.5%
                
Accenture PLC, Class A (Ireland)
     1,092,700       45,838,765  
 
              
 
                
Life & Health Insurance 2.9%
                
Aflac, Inc.
     797,500       43,296,275  
MetLife, Inc.
     2,699,200       116,983,328  
Primerica, Inc. (a) (b)
     47,450       711,750  
Torchmark Corp.
     1,714,547       91,745,410  
 
              
 
             252,736,763  
 
              

 

 

Van Kampen Comstock Fund
Portfolio of Investments n March 31, 2010 (Unaudited) continued
                 
    Number of        
Description   Shares     Value  
 
Managed Health Care 1.5%
                
UnitedHealth Group, Inc.
     2,012,900     $ 65,761,443  
WellPoint, Inc. (a)
     979,400       63,053,772  
 
              
 
             128,815,215  
 
              
Movies & Entertainment 7.9%
                
News Corp., Class B
     8,413,000       143,105,130  
Time Warner, Inc.
     4,949,000       154,755,230  
Viacom, Inc., Class B (a)
     11,130,150       382,654,557  
 
              
 
             680,514,917  
 
              
Multi-Utilities 0.3%
                
Sempra Energy
     511,200       25,508,880  
 
              
 
                
Oil & Gas Equipment & Services 1.7%
                
Halliburton Co.
     4,872,100       146,796,373  
 
              
 
                
Other Diversified Financial Services 6.5%
                
Bank of America Corp.
     12,547,465       223,972,250  
Citigroup, Inc. (a)
     20,164,400       81,665,820  
JPMorgan Chase & Co.
     5,831,300       260,950,675  
 
              
 
             566,588,745  
 
              
Packaged Foods & Meats 4.2%
                
Kraft Foods, Inc., Class A
     7,032,043       212,648,980  
Unilever N.V. (Netherlands)
     4,996,600       150,697,456  
 
              
 
             363,346,436  
 
              
Paper Products 2.5%
                
International Paper Co.
     8,823,860       217,155,195  
 
              
 
                
Pharmaceuticals 9.7%
                
Abbott Laboratories
     1,096,400       57,758,352  
Bristol-Myers Squibb Co.
     8,269,449       220,794,288  
Eli Lilly & Co.
     2,476,700       89,706,074  
GlaxoSmithKline PLC — ADR (United Kingdom)
     1,023,200       39,413,664  
Merck & Co., Inc.
     4,369,482       163,200,153  
Pfizer, Inc.
     12,126,345       207,966,817  

 

 

Van Kampen Comstock Fund
Portfolio of Investments n March 31, 2010 (Unaudited) continued
                 
    Number of        
Description   Shares     Value  
 
Pharmaceuticals (continued)
                
Roche Holdings AG — ADR (Switzerland)
     1,461,516     $ 59,360,349  
 
              
 
             838,199,697  
 
              
Property & Casualty Insurance 8.4%
                
Berkshire Hathaway, Inc., Class A (a)
     685       83,433,000  
Berkshire Hathaway, Inc., Class B (a)
     53,500       4,347,945  
Chubb Corp.
     8,112,440       420,630,014  
Travelers Cos., Inc.
     3,996,600       215,576,604  
 
              
 
             723,987,563  
 
              
Regional Banks 1.2%
                
PNC Financial Services Group, Inc.
     1,770,200       105,680,940  
 
              
 
                
Semiconductor Equipment 0.6%
                
KLA-Tencor Corp.
     1,586,100       49,042,212  
 
              
 
                
Semiconductors 1.4%
                
Intel Corp.
     5,530,092       123,099,848  
 
              
 
                
Soft Drinks 1.5%
                
Coca-Cola Co.
     1,881,300       103,471,500  
PepsiCo, Inc.
     409,900       27,118,984  
 
              
 
             130,590,484  
 
              
Systems Software 0.4%
                
Microsoft Corp.
     1,080,100       31,614,527  
 
              
 
                
Tobacco 1.8%
                
Altria Group, Inc.
     3,322,400       68,175,648  
Philip Morris International, Inc.
     1,716,000       89,506,560  
 
              
 
             157,682,208  
 
              
Wireless Telecommunication Services 0.8%
                
Vodafone Group PLC — ADR (United Kingdom)
     2,928,200       68,197,778  
 
              
 
                
Total Long-Term Investments 98.1%
(Cost $8,409,763,413)
            8,486,719,811  
 
              

 

 

Van Kampen Comstock Fund
Portfolio of Investments n March 31, 2010 (Unaudited) continued
         
Description   Value  
 
Repurchase Agreements 1.9%
        
Banc of America Securities ($28,724,344 par collateralized by U.S. Government obligations in a pooled cash account, interest rate of 0.01%, dated 03/31/10, to be sold on 04/01/10 at $28,724,352)
   $ 28,724,344  
JPMorgan Chase & Co. ($137,656,599 par collateralized by U.S. Government obligations in a pooled cash account, interest rate of 0.01%, dated 03/31/10, to be sold on 04/01/10 at $137,656,638)
     137,656,599  
State Street Bank & Trust Co. ($6,057 par collateralized by U.S. Government obligations in a pooled cash account, interest rate of 0.00%, dated 03/31/10, to be sold on 04/01/10 at $6,057)
     6,057  
 
      
 
        
Total Repurchase Agreements 1.9%
(Cost $166,387,000)
    166,387,000  
 
      
 
        
Total Investments 100.0%
(Cost $8,576,150,413)
    8,653,106,811  
 
        
Other Assets in Excess of Liabilities 0.0%
    4,168,634  
 
      
 
        
Net Assets 100.0%
  $ 8,657,275,445  
 
      
Percentages are calculated as a percentage of net assets.
 
(a)   Non-income producing security.
 
(b)   Secutity purchase on a when-issued or delayed delivery basis.
ADR — American Depositary Receipt

 

 

Van Kampen Comstock Fund
Portfolio of Investments n March 31, 2010 (Unaudited) continued
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. Listed and unlisted 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.
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. 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 —
  Prices are based on quoted prices in active markets for identical investments.
 
Level 2 —
  Prices are based on other significant observable inputs which may include quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.
 
Level 3 —
  Prices are based on significant unobservable inputs including the Fund’s own assumptions in determining the fair value of investments. 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.
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 March 31, 2010 in valuing the Fund’s investments carried at value.
                                 
    Level 1     Level 2     Level 3        
            Other              
            Significant     Significant        
            Observable     Unobservable        
Investments   Quoted Prices     Inputs     Inputs     Total  
 
Investments in an Asset Position
                                
Common Stocks
                                
Aerospace & Defense
   $ 71,150,859     $ —     $ —     $ 71,150,859  
Aluminum
     70,284,368       —       —       70,284,368  
Asset Management & Custody Banks
     205,820,293       —       —       205,820,293  
Broadcasting & Cable TV
     363,867,950       —       —       363,867,950  
Broadcasting — Diversified
     225,999,027       —       —       225,999,027  
Communications Equipment
     96,662,405       —       —       96,662,405  
Computer Hardware
     176,342,181       —       —       176,342,181  
Data Processing & Outsourced Services
     23,922,080       —       —       23,922,080  
Department Stores
     112,998,781       —       —       112,998,781  
Diversified Banks
     166,461,872       —       —       166,461,872  
Diversified Chemicals
     59,955,134       —       —       59,955,134  
Drug Retail
     103,048,016       —       —       103,048,016  
Electrical Components & Equipment
     55,655,904       —       —       55,655,904  
Electronic Equipment Manufacturers
     22,616,728       —       —       22,616,728  
Electronic Manufacturing Services
     22,961,141       —       —       22,961,141  
General Merchandise Stores
     34,195,260       —       —       34,195,260  
Health Care Distributors
     145,658,481       —       —       145,658,481  
Health Care Equipment
     31,638,762       —       —       31,638,762  
Home Improvement Retail
     170,012,352       —       —       170,012,352  
Household Products
     36,620,676       —       —       36,620,676  
Hypermarkets & Super Centers
     195,650,840       —       —       195,650,840  
Industrial Conglomerates
     116,847,640       —       —       116,847,640  
Industrial Machinery
     80,605,492       —       —       80,605,492  
Integrated Oil & Gas
     485,297,708       —       —       485,297,708  
Integrated Telecommunication Services
     311,743,444       —       —       311,743,444  
Internet Software & Services
     368,761,253       —       —       368,761,253  
Investment Banking & Brokerage
     76,544,618       —       —       76,544,618  
IT Consulting & Other Services
     45,838,765       —       —       45,838,765  
Life & Health Insurance
     252,736,763       —       —       252,736,763  
Managed Health Care
     128,815,215       —       —       128,815,215  
Movies & Entertainment
     680,514,917       —       —       680,514,917  
Multi-Utilities
     25,508,880       —       —       25,508,880  
Oil & Gas Equipment & Services
     146,796,373       —       —       146,796,373  
Other Diversified Financial Services
     566,588,745       —       —       566,588,745  
Packaged Foods & Meats
     363,346,436       —       —       363,346,436  
Paper Products
     217,155,195       —       —       217,155,195  
Pharmaceuticals
     778,839,348       59,360,349       —       838,199,697  
Property & Casualty Insurance
     723,987,563       —       —       723,987,563  
Regional Banks
     105,680,940       —       —       105,680,940  
Semiconductor Equipment
     49,042,212       —       —       49,042,212  
Semiconductors
     123,099,848       —       —       123,099,848  
Soft Drinks
     130,590,484       —       —       130,590,484  
Systems Software
     31,614,527       —       —       31,614,527  
Tobacco
     157,682,208       —       —       157,682,208  
Wireless Telecommunication Services
     68,197,778       —       —       68,197,778  
Repurchase Agreements
     —       166,387,000       —       166,387,000  
     
Total Investments in an Asset Position
   $ 8,427,359,462     $ 225,747,349     $ —     $ 8,653,106,811  
     
Transfers between investment levels may occur as the markets fluctuate and/or as the availability of data used in an investment’s valuation changes. The Fund recognizes the transfer of investments into or out of a valuation level at month end. As of the three-month period ended March 31, 2010, the Fund did not have any investments transfer between valuation levels.

 

 

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:   May 17, 2010     
 
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/ Edward C. Wood III      
  Name:   Edward C. Wood III     
  Title:   Principal Executive Officer     
  Date:   May 17, 2010     
 
     
By:   /s/ Stuart N. Schuldt      
  Name:   Stuart N. Schuldt     
  Title:   Principal Financial Officer      
  Date:   May 17, 2010