N-Q 1 c47095nvq.htm FORM N-Q FORM N-Q
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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: 9/30/08
 
 

 

TABLE OF CONTENTS

Item 1. Schedule of Investments
Item 2. Controls and Procedures
Item 3. Exhibits
SIGNATURES
EX-99.CERT

Table of Contents

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 § September 30, 2008 (Unaudited)
                 
    Number of        
Description   Shares     Value  
 
 
Common Stocks 97.0%
                
 
Airlines 1.1%
                
Southwest Airlines Co.
     9,106,400     $  132,133,864  
 
              
 
                
Aluminum 0.3%
                
Alcoa, Inc.
     1,428,900       32,264,562  
 
              
 
                
Asset Management & Custody Banks 2.2%
                
Bank of New York Mellon Corp.
     7,862,928       256,174,194  
 
              
 
                
Broadcasting & Cable TV 5.1%
                
Comcast Corp., Class A
     24,222,550       475,488,656  
Liberty Media Corp. — Entertainment, Class A (a)
     5,148,240       128,551,553  
 
              
 
             604,040,209  
 
              
 
                
Catalog Retail 0.8%
                
Liberty Media Corp. — Interactive, Class A (a)
     7,620,475       98,380,332  
 
              
 
                
Communications Equipment 0.6%
                
Alcatel-Lucent — ADR (France) (a)
     8,644,100       33,193,344  
Ericsson, Class B — ADR (Sweden)
     3,627,456       34,206,910  
 
              
 
             67,400,254  
 
              
 
                
Computer Hardware 3.6%
                
Dell, Inc. (a)
     7,314,100       120,536,368  
Hewlett-Packard Co.
     2,101,000       97,150,240  
IBM Corp.
     1,729,300       202,258,928  
 
              
 
             419,945,536  
 
              
 
                
Data Processing & Outsourced Services 0.8%
                
Computer Sciences Corp. (a)
     1,328,600       53,396,434  
Western Union Co.
     1,443,900       35,621,013  
 
              
 
             89,017,447  
 
              
 
                
Department Stores 1.3%
                
J.C. Penney Co., Inc.
     2,198,400       73,294,656  
Macy’s, Inc.
     4,207,400       75,649,052  
 
              
 
             148,943,708  
 
              

 

Table of Contents

                 
    Number of        
Description   Shares     Value  
 
 
Diversified Banks 2.4%
                
Barclays PLC — ADR (United Kingdom)
     655,200     $ 16,183,440  
U.S. Bancorp
     2,370,200       85,374,604  
Wells Fargo & Co.
     4,954,300       185,934,879  
 
              
 
             287,492,923  
 
              
 
                
Diversified Chemicals 1.8%
                
Du Pont (E.I.) de Nemours & Co.
     5,269,866       212,375,600  
 
              
 
                
Drug Retail 1.1%
                
CVS Caremark Corp.
     3,705,000       124,710,300  
 
              
 
                
Electronic Equipment Manufacturers 0.2%
                
Cognex Corp.
     1,252,087       25,242,074  
 
              
 
                
Electronic Manufacturing Services 0.2%
                
Flextronics International Ltd. (Singapore) (a)
     2,998,017       21,225,960  
Kemet Corp. (a)
     1,035,280       1,407,981  
 
              
 
             22,633,941  
 
              
 
                
Health Care Distributors 1.8%
                
Cardinal Health, Inc.
     4,184,300       206,202,304  
 
              
 
                
Health Care Equipment 0.9%
                
Boston Scientific Corp. (a)
     8,773,500       107,650,845  
 
              
 
                
Home Improvement Retail 1.3%
                
Home Depot, Inc.
     2,742,600       71,005,914  
Lowe’s Cos., Inc.
     3,465,300       82,092,957  
 
              
 
             153,098,871  
 
              
 
                
Household Products 2.4%
                
Kimberly-Clark Corp.
     2,942,700       190,804,668  
Procter & Gamble Co.
     1,305,400       90,973,326  
 
              
 
             281,777,994  
 
              
 
                
Hypermarkets & Super Centers 3.4%
                
Wal-Mart Stores, Inc.
     6,638,800       397,597,732  
 
              

 

Table of Contents

                 
    Number of        
Description   Shares     Value  
 
 
Industrial Conglomerates 1.2%
                
General Electric Co.
     5,394,900     $ 137,569,950  
 
              
 
                
Integrated Telecommunication Services 5.3%
                
AT&T, Inc.
     8,038,250       224,427,940  
Verizon Communications, Inc.
     12,384,300       397,412,187  
 
              
 
             621,840,127  
 
              
 
                
Internet Software & Services 1.8%
                
eBay, Inc. (a)
     9,614,700       215,176,986  
 
              
 
                
Investment Banking & Brokerage 0.8%
                
Goldman Sachs Group, Inc.
     310,200       39,705,600  
Merrill Lynch & Co., Inc.
     2,327,400       58,883,220  
 
              
 
             98,588,820  
 
              
 
                
Life & Health Insurance 2.5%
                
Aflac, Inc.
     816,300       47,957,625  
MetLife, Inc.
     2,422,900       135,682,400  
Torchmark Corp.
     1,759,947       105,244,831  
 
              
 
             288,884,856  
 
              
 
                
Managed Health Care 0.7%
                
UnitedHealth Group, Inc.
     1,623,500       41,220,665  
WellPoint, Inc. (a)
     1,002,500       46,886,925  
 
              
 
             88,107,590  
 
              
 
                
Movies & Entertainment 6.8%
                
News Corp., Class B
     9,190,600       111,665,790  
Time Warner, Inc.
     25,808,400       338,348,124  
Viacom, Inc., Class B (a)
     14,013,250       348,089,130  
 
              
 
             798,103,044  
 
              
 
                
Multi-Line Insurance 1.2%
                
Genworth Financial, Inc., Class A
     2,413,500       20,780,235  
Hartford Financial Services Group, Inc.
     2,912,700       119,391,573  
 
              
 
             140,171,808  
 
              

 

Table of Contents

                 
    Number of        
Description   Shares     Value  
 
 
Other Diversified Financial Services 9.0%
                
Bank of America Corp.
     13,517,100     $ 473,098,500  
Citigroup, Inc.
     14,887,700       305,346,727  
JPMorgan Chase & Co.
     5,969,300       278,766,310  
 
              
 
             1,057,211,537  
 
              
 
                
Packaged Foods & Meats 8.0%
                
Cadbury PLC — ADR (United Kingdom)
     5,895,424       237,695,832  
Kraft Foods, Inc., Class A
     10,596,243       347,026,958  
Sara Lee Corp.
     4,341,600       54,834,408  
Unilever NV (Netherlands)
     10,765,600       303,159,296  
 
              
 
             942,716,494  
 
              
 
                
Paper Products 4.4%
                
International Paper Co.
     19,587,513       512,801,091  
 
              
 
                
Pharmaceuticals 11.1%
                
Abbott Laboratories
     1,504,400       86,623,352  
Bristol-Myers Squibb Co.
     18,037,000       376,071,450  
Eli Lilly & Co.
     2,958,900       130,280,367  
GlaxoSmithKline PLC — ADR (United Kingdom)
     1,664,800       72,352,208  
Pfizer, Inc.
     11,256,400       207,568,016  
Roche Holdings AG — ADR (Switzerland)
     550,308       42,822,162  
Schering-Plough Corp.
     13,087,400       241,724,278  
Wyeth
     3,875,100       143,146,194  
 
              
 
             1,300,588,027  
 
              
 
                
Property & Casualty Insurance 5.7%
                
Berkshire Hathaway, Inc., Class A (a)
     705       92,073,000  
Berkshire Hathaway, Inc., Class B (a)
     1,100       4,834,500  
Chubb Corp.
     7,823,940       429,534,306  
Travelers Cos., Inc.
     3,164,200       143,021,840  
 
              
 
             669,463,646  
 
              
 
                
Regional Banks 1.1%
                
PNC Financial Services Group, Inc.
     1,660,900       124,069,230  
 
              

 

Table of Contents

                 
    Number of        
Description   Shares     Value  
 
 
Semiconductor Equipment 0.5%
                
KLA-Tencor Corp.
     1,728,800     $ 54,716,520  
 
              
 
                
Semiconductors 0.7%
                
Intel Corp.
     4,103,292       76,854,659  
 
              
 
                
Soft Drinks 2.8%
                
Coca-Cola Co.
     4,526,400       239,356,032  
Dr. Pepper Snapple Group, Inc. (a)
     3,573,344       94,622,149  
 
              
 
             333,978,181  
 
              
 
                
Systems Software 0.5%
                
Microsoft Corp.
     2,430,100       64,859,369  
 
              
 
                
Tobacco 1.6%
                
Altria Group, Inc.
     3,971,300       78,790,592  
Philip Morris International, Inc.
     2,233,600       107,436,160  
 
              
 
 
             186,226,752  
 
              
 
                
Total Long-Term Investments 97.0%
                
(Cost $12,208,879,060)
             11,379,011,377  
 
              
         
Repurchase Agreements 2.3%
        
Banc of America Securities ($101,259,819 par collateralized by U.S. Government obligations in a pooled cash account, interest rate of 2.05%, dated 09/30/08, to be sold on 10/01/08 at $101,265,585)     101,259,819  
Citigroup Global Markets, Inc. ($101,259,819 par collateralized by U.S. Government obligations in a pooled cash account, interest rate of 1.50%, dated 09/30/08, to be sold on 10/01/08 at $101,264,038)     101,259,819  
JPMorgan Chase & Co. ($30,377,945 par collateralized by U.S. Government obligations in a pooled cash account, interest rate of 1.00%, dated 09/30/08, to be sold on 10/01/08 at $30,378,789)     30,377,945  

 

Table of Contents

         
Description   Value  
 
 
Repurchase Agreements (continued)
        
State Street Bank & Trust Co. ($39,932,417 par collateralized by U.S. Government obligations in a pooled cash account, interest rate of 1.35%, dated 09/30/08, to be sold on 10/01/08 at $39,933,915)     39,932,417  
 
      
 
        
Total Repurchase Agreements 2.3%
        
(Cost $272,830,000)
     272,830,000  
 
      
 
        
Total Investments 99.3%
        
(Cost $12,481,709,060)
   $ 11,651,841,377  
 
        
Other Assets in Excess of Liabilities 0.7%
     76,496,689  
 
      
 
        
Net Assets 100.0%
   $ 11,728,338,066  
 
      
Percentages are calculated as a percentage of net assets.
(a)   Non-income producing security.
ADR — American Depositary Receipt
The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (‘‘FAS 157’’), effective January 1, 2008. In accordance with FAS 157, fair value is defined 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. FAS 157 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)

 

Table of Contents

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, 2008 in valuing the Fund’s investments carried at value:
         
    Investments in  
Valuation Inputs   Securities  
Level 1 - Quoted Prices
   $ 11,098,493,383  
Level 2 - Other Significant Observable Inputs
     553,347,994  
Level 3 - Significant Unobservable Inputs
     -0-  
 
      
Total
   $ 11,651,841,377  
 
      
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 stated at value using market quotations or indications of value obtained from an independent pricing service.
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. Short-term securities with remaining maturities of 60 days or less are valued at amortized cost, which approximates market value.

 

Table of Contents

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.

 

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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 18, 2008    
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: November 18, 2008    
 
        
By:
   /s/ Stuart N. Schuldt    
         
Name: Stuart N. Schuldt    
Title: Principal Financial Officer    
Date: November 18, 2008