N-Q 1 c50850nvq.htm FORM N-Q FORM N-Q
 
 
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: 3/31/09
 
 

 


 

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 § March 31, 2009 (Unaudited)
                 
    Number of        
Description   Shares     Value  
 
Common Stocks 96.0%        
Aluminum 1.0%        
Alcoa, Inc.
    8,966,800     $ 65,816,312  
 
             
 
               
Asset Management & Custody Banks 3.3%        
Bank of New York Mellon Corp.
    7,893,928       223,003,466  
 
             
 
               
Broadcasting & Cable TV 5.5%        
Comcast Corp., Class A
    20,512,850       279,795,274  
Liberty Media Corp. — Entertainment, Class A (a)
    4,372,540       87,232,173  
 
             
 
            367,027,447  
 
             
Broadcasting — Diversified 0.8%        
Time Warner Cable, Inc.
    2,184,740       54,181,552  
 
             
 
               
Catalog Retail 0.3%        
Liberty Media Corp. — Interactive, Class A (a)
    7,444,275       21,588,398  
 
             
 
               
Communications Equipment 1.7%        
Cisco Systems, Inc. (a)
    4,820,100       80,833,077  
Ericsson, Class B — ADR (Sweden)
    4,377,456       35,413,619  
 
             
 
            116,246,696  
 
             
Computer Hardware 4.2%        
Dell, Inc. (a)
    11,784,818       111,720,075  
Hewlett-Packard Co.
    2,052,400       65,799,944  
IBM Corp.
    1,061,900       102,887,491  
 
             
 
            280,407,510  
 
             
Data Processing & Outsourced Services 0.6%        
Computer Sciences Corp. (a)
    581,500       21,422,460  
Western Union Co.
    1,410,500       17,729,985  
 
             
 
            39,152,445  
 
             
Department Stores 1.3%        
J.C. Penney Co., Inc.
    2,147,600       43,102,332  
Macy’s, Inc.
    4,613,400       41,059,260  
 
             
 
            84,161,592  
 
             

 


 

Van Kampen Comstock Fund
Portfolio of Investments § March 31, 2009 (Unaudited)
continued
                 
    Number of        
Description   Shares     Value  
 
Diversified Banks 1.6%        
Barclays PLC — ADR (United Kingdom)
    640,000     $ 5,440,000  
U.S. Bancorp
    2,315,400       33,827,994  
Wells Fargo & Co.
    4,839,800       68,918,752  
 
             
 
            108,186,746  
 
             
Diversified Chemicals 1.2%        
Du Pont (E.I.) de Nemours & Co.
    3,625,166       80,949,957  
 
             
 
               
Drug Retail 1.2%        
CVS Caremark Corp.
    2,818,600       77,483,314  
 
             
 
               
Electrical Components & Equipment 0.5%        
Emerson Electric Co.
    1,105,600       31,598,048  
 
             
 
               
Electronic Equipment Manufacturers 0.2%        
Cognex Corp.
    1,223,187       16,329,546  
 
             
 
               
Electronic Manufacturing Services 0.1%        
Flextronics International Ltd. (Singapore) (a)
    2,928,717       8,463,992  
 
             
 
               
General Merchandise Stores 0.4%        
Target Corp.
    730,600       25,125,334  
 
             
 
               
Health Care Distributors 1.9%        
Cardinal Health, Inc.
    4,087,500       128,674,500  
 
             
 
               
Health Care Equipment 1.1%        
Boston Scientific Corp. (a)
    9,569,400       76,076,730  
 
             
 
               
Home Improvement Retail 1.8%        
Home Depot, Inc.
    2,679,200       63,121,952  
Lowe’s Cos., Inc.
    3,028,900       55,277,425  
 
             
 
            118,399,377  
 
             
Household Products 0.3%        
Kimberly-Clark Corp.
    451,500       20,818,665  
 
             

 


 

Van Kampen Comstock Fund
Portfolio of Investments § March 31, 2009 (Unaudited)
continued
                 
    Number of        
Description   Shares     Value  
 
Hypermarkets & Super Centers 2.7%        
Wal-Mart Stores, Inc.
    3,518,900     $ 183,334,690  
 
             
 
Industrial Conglomerates 1.0%        
General Electric Co.
    6,420,200       64,908,222  
 
             
 
Integrated Oil & Gas 1.8%        
BP PLC — ADR (United Kingdom)
    836,000       33,523,600  
ConocoPhillips
    775,400       30,364,664  
Total SA — ADR (France)
    1,173,900       57,591,534  
 
             
 
            121,479,798  
 
             
Integrated Telecommunication Services 4.9%        
AT&T, Inc.
    4,969,150       125,222,580  
Verizon Communications, Inc.
    6,784,200       204,882,840  
 
             
 
            330,105,420  
 
             
Internet Software & Services 2.6%        
eBay, Inc. (a)
    11,605,600       145,766,336  
Yahoo!, Inc. (a)
    2,448,700       31,367,847  
 
             
 
            177,134,183  
 
             
Investment Banking & Brokerage 0.6%        
Goldman Sachs Group, Inc.
    360,200       38,188,404  
 
             
 
Life & Health Insurance 1.8%        
Aflac, Inc.
    797,500       15,439,600  
MetLife, Inc.
    2,699,200       61,460,784  
Torchmark Corp.
    1,714,547       44,972,568  
 
             
 
            121,872,952  
 
             
Managed Health Care 1.1%        
UnitedHealth Group, Inc.
    1,586,000       33,194,980  
WellPoint, Inc. (a)
    979,400       37,187,818  
 
             
 
            70,382,798  
 
             
Movies & Entertainment 7.5%        
News Corp., Class B
    10,506,000       80,896,200  
Time Warner, Inc.
    8,703,791       167,983,166  

 


 

Van Kampen Comstock Fund
Portfolio of Investments § March 31, 2009 (Unaudited)
continued
                 
    Number of        
Description   Shares     Value  
 
Movies & Entertainment (continued)        
Viacom, Inc., Class B (a)
    14,341,750     $ 249,259,615  
 
             
 
            498,138,981  
 
             
Oil & Gas Equipment & Services 1.1%        
Halliburton Co.
    4,872,100       75,371,387  
 
             
 
Other Diversified Financial Services 3.4%        
Bank of America Corp.
    10,326,465       70,426,491  
JPMorgan Chase & Co.
    5,831,300       154,995,954  
 
             
 
            225,422,445  
 
             
Packaged Foods & Meats 7.4%        
Cadbury PLC — ADR (United Kingdom)
    5,911,724       178,622,150  
Kraft Foods, Inc., Class A
    7,032,043       156,744,238  
Sara Lee Corp.
    4,241,200       34,268,896  
Unilever NV (Netherlands)
    6,305,500       123,587,800  
 
             
 
            493,223,084  
 
             
Paper Products 2.4%        
International Paper Co.
    22,390,350       157,628,064  
 
             
 
Pharmaceuticals 12.6%        
Abbott Laboratories
    1,096,400       52,298,280  
Bristol-Myers Squibb Co.
    9,423,600       206,565,312  
Eli Lilly & Co.
    2,476,700       82,746,547  
GlaxoSmithKline PLC — ADR (United Kingdom)
    911,500       28,320,305  
Pfizer, Inc.
    9,528,900       129,783,618  
Roche Holdings AG — ADR (Switzerland)
    1,385,416       47,579,757  
Schering-Plough Corp.
    7,576,700       178,431,285  
Wyeth
    2,637,000       113,496,480  
 
             
 
            839,221,584  
 
             
Property & Casualty Insurance 8.4%        
Berkshire Hathaway, Inc., Class A (a)
    685       59,389,500  
Berkshire Hathaway, Inc., Class B (a)
    1,070       3,017,400  
Chubb Corp.
    8,112,440       343,318,461  

 


 

Van Kampen Comstock Fund
Portfolio of Investments § March 31, 2009 (Unaudited)
continued
                 
    Number of        
Description   Shares     Value  
 
Property & Casualty Insurance (continued)        
Travelers Cos., Inc.
    3,823,800     $ 155,399,232  
 
             
 
            561,124,593  
 
             
Regional Banks 0.8%        
PNC Financial Services Group, Inc.
    1,770,200       51,849,158  
 
             
 
               
Semiconductor Equipment 0.7%        
KLA-Tencor Corp.
    2,282,200       45,644,000  
 
             
 
               
Semiconductors 1.2%        
Intel Corp.
    5,530,092       83,227,885  
 
             
 
               
Soft Drinks 2.6%        
Coca-Cola Co.
    2,867,800       126,039,810  
Dr. Pepper Snapple Group, Inc. (a)
    2,648,044       44,778,424  
 
             
 
            170,818,234  
 
             
Systems Software 0.7%        
Microsoft Corp.
    2,373,900       43,608,543  
 
             
 
               
Tobacco 1.7%        
Altria Group, Inc.
    3,322,400       53,224,848  
Philip Morris International, Inc.
    1,716,000       61,055,280  
 
             
 
 
            114,280,128  
 
             
Total Long-Term Investments 96.0%
(Cost $9,936,986,850)
            6,410,656,180  
 
             
 
               
Repurchase Agreements 2.1%        
Banc of America Securities ($7,525,188 par collateralized by U.S. Government obligations in a pooled cash account, interest rate of 0.10%, dated 03/31/09, to be sold on 04/01/09 at $7,525,209)
    7,525,188  
Citigroup Global Markets, Inc. ($36,120,901 par collateralized by U.S. Government obligations in a pooled cash account, interest rate of 0.14%, dated 03/31/09, to be sold on 04/01/09 at $36,121,041)
    36,120,901  

 


 

Van Kampen Comstock Fund
Portfolio of Investments § March 31, 2009 (Unaudited)
continued
         
Description   Value  
 
Repurchase Agreements (continued)
       
Citigroup Global Markets, Inc. ($75,251,876 par collateralized by U.S. Government obligations in a pooled cash account, interest rate of 0.13%, dated 03/31/09, to be sold on 04/01/09 at $75,252,148)
  $ 75,251,876  
JPMorgan Chase & Co. ($22,575,563 par collateralized by U.S. Government obligations in a pooled cash account, interest rate of 0.14%, dated 03/31/09, to be sold on 04/01/09 at $22,575,651)
    22,575,563  
State Street Bank & Trust Co. ($387,472 par collateralized by U.S. Government obligations in a pooled cash account, interest rate of 0.01%, dated 03/31/09, to be sold on 04/01/09 at $387,472)
    387,472  
 
     
 
       
Total Repurchase Agreements 2.1%
(Cost $141,861,000)
    141,861,000  
 
     
 
       
Total Investments 98.1%
(Cost $10,078,847,850)
    6,552,517,180  
 
       
Other Assets in Excess of Liabilities 1.9%
    128,125,853  
 
     
 
       
Net Assets 100.0%
  $ 6,680,643,033  
 
     
Percentages are calculated as a percentage of net assets.
(a) Non-income producing security.
ADR — American Depositary Receipt
Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements (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. 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.

 


 

Van Kampen Comstock Fund
Portfolio of Investments § March 31, 2009 (Unaudited)
continued
     
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 March 31, 2009 in valuing the Fund’s investments carried at value:
         
    Investments in  
Valuation Inputs   Securities  
Level 1 - Quoted Prices
  $ 6,184,454,273  
Level 2 - Other Significant Observable Inputs
    368,062,907  
Level 3 - Significant Unobservable Inputs
    -0-  
 
Total
  $ 6,552,517,180  
 
     
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. 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 market value.

 


 

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