N-Q 1 c57608nvq.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 811-02611
Van Kampen Exchange 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 Exchange Fund
Portfolio of Investments n March 31, 2010 (Unaudited)
                 
    Number of        
Description   Shares     Value  
 
Common Stocks 99.1%
                
Aerospace & Defense 1.0%
                
Honeywell International, Inc.
     12,478     $ 564,879  
 
              
 
                
Coal & Consumable Fuels 1.2%
                
Massey Energy Corp.
     12,780       668,266  
 
              
 
                
Commodity Chemicals 0.0%
                
Tronox, Inc., Class B (a)
    2,189       1,576  
 
              
 
                
Computer Hardware 3.4%
                
IBM Corp.
     14,956       1,918,107  
 
              
 
                
Construction & Engineering 2.1%
                
Fluor Corp.
     25,559       1,188,749  
 
              
 
                
Diversified Banks 1.0%
                
HSBC Holdings PLC — ADR (United Kingdom)
    11,471       581,465  
 
              
 
                
Forest Products 0.4%
                
Louisiana-Pacific Corp. (a)
    25,866       234,087  
 
              
 
                
Health Care Distributors 0.1%
                
Cardinal Health, Inc.
     1,860       67,016  
CareFusion Corp. (a)
    930       24,580  
 
              
 
             91,596  
 
              
 
                
Health Care Equipment 1.0%
                
Baxter International, Inc.
     9,960       579,672  
 
              
 
                
Health Care Services 1.4%
                
Medco Health Solutions, Inc. (a)
    12,102       781,305  
 
              
 
                
Industrial Gases 9.8%
                
Air Products & Chemicals, Inc.
     75,236       5,563,702  
 
              
 
                
Industrial Machinery 1.6%
                
SPX Corp.
     13,594       901,554  
 
              

 

 

Van Kampen Exchange Fund
Portfolio of Investments n March 31, 2010 (Unaudited) continued
                 
    Number of        
Description   Shares     Value  
 
Integrated Oil & Gas 15.4%
                
BP PLC — ADR (United Kingdom)
     33,740     $ 1,925,542  
Exxon Mobil Corp.
     54,219       3,631,589  
Hess Corp.
     51,692       3,233,334  
 
              
 
             8,790,465  
 
              
 
                
Multi-Line Insurance 0.1%
                
American International Group, Inc. (a)
     2,076       70,875  
 
              
 
                
Oil & Gas Drilling 0.3%
                
Transocean Ltd. (Switzerland) (a)
     2,169       187,358  
 
              
 
                
Oil & Gas Equipment & Services 8.9%
                
Baker Hughes, Inc.
     25,531       1,195,872  
Halliburton Co.
     60,397       1,819,762  
Schlumberger Ltd. (Netherlands Antilles)
     32,031       2,032,687  
 
              
 
             5,048,321  
 
              
 
                
Oil & Gas Exploration & Production 4.7%
                
Apache Corp.
     26,241       2,663,462  
 
              
 
                
Packaged Foods & Meats 6.5%
                
McCormick & Co., Inc.
     96,131       3,687,585  
 
              
 
                
Pharmaceuticals 19.9%
                
Johnson & Johnson
     53,320       3,476,464  
Merck & Co., Inc.
     122,062       4,559,016  
Pfizer, Inc.
     191,319       3,281,121  
 
              
 
             11,316,601  
 
              
 
                
Semiconductors 8.4%
                
Intel Corp.
     215,966       4,807,403  
 
              
 
                
Specialized REIT’s 1.7%
                
Plum Creek Timber Co., Inc.
     25,500       992,205  
 
              
 
                
Specialty Chemicals 10.2%
                
International Flavors & Fragrances, Inc.
     49,513       2,360,285  

 

 

Van Kampen Exchange Fund
Portfolio of Investments n March 31, 2010 (Unaudited) continued
                 
    Number of        
Description   Shares     Value  
 
Specialty Chemicals (continued)
                
Lubrizol Corp.
     37,469     $ 3,436,656  
 
              
 
             5,796,941  
 
              
 
                
Total Long-Term Investments 99.1%
(Cost $5,964,990)
             56,436,174  
 
              
 
                
Repurchase Agreements 0.8%
                
Banc of America Securities ($82,002 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 $82,002)
             82,002  
JPMorgan Chase & Co. ($392,981 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 $392,981)
             392,981  
State Street Bank & Trust Co. ($17 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 $17)
             17  
 
              
 
                
Total Repurchase Agreements 0.8%
(Cost $475,000)
             475,000  
 
              
 
                
Total Investments 99.9%
(Cost $6,439,990)
             56,911,174  
 
                
Other Assets in Excess of Liabilities 0.1%
             55,379  
 
              
 
                
Net Assets 100.0%
           $ 56,966,553  
 
              
 
Percentages are calculated as a percentage of net assets. 
 
(a) Non-income producing security.
 
ADR —   American Depositary Receipt
 
REIT  —    Real Estate Investment Trust
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 between the last reported bid and ask price. For those securities where quotations or prices

 

 

 
Van Kampen Exchange Fund
Portfolio of Investments n March 31, 2010 (Unaudited) continued
are not readily available, valuations are determined in accordance with procedures established in good faith by the Managing General Partners. 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    
Investments   Quoted Prices   Observable Inputs   Unobservable Inputs   Total
                                 
Investments in an Asset Position
                                
Common Stocks
                                
Aerospace & Defense
   $ 564,879     $ —     $ —     $ 564,879  
Coal & Consumable Fuels
     668,266       —       —       668,266  
Commodity Chemicals
     1,576       —       —       1,576  
Computer Hardware
     1,918,107       —       —       1,918,107  

 

 

Van Kampen Exchange Fund
Portfolio of Investments n March 31, 2010 (Unaudited) continued
                                 
    Level 1   Level 2   Level 3    
            Other Significant   Significant    
Investments   Quoted Prices   Observable Inputs   Unobservable Inputs   Total
                                 
Construction & Engineering
   $ 1,188,749     $ —     $ —     $ 1,188,749  
Diversified Banks
     581,465       —       —       581,465  
Forest Products
     234,087       —       —       234,087  
Health Care Distributors
     91,596       —       —       91,596  
Health Care Equipment
     579,672       —       —       579,672  
Health Care Services
     781,305       —       —       781,305  
Industrial Gases
     5,563,702       —       —       5,563,702  
Industrial Machinery
     901,554       —       —       901,554  
Integrated Oil & Gas
     8,790,465       —       —       8,790,465  
Multi-Line Insurance
     70,875       —       —       70,875  
Oil & Gas Drilling
     187,358       —       —       187,358  
Oil & Gas Equipment & Services
     5,048,321       —       —       5,048,321  
Oil & Gas Exploration & Production
     2,663,462       —       —       2,663,462  
Packaged Foods & Meats
     3,687,585       —       —       3,687,585  
Pharmaceuticals
     11,316,601       —       —       11,316,601  
Semiconductors
     4,807,403       —       —       4,807,403  
Specialized REIT’s
     992,205       —       —       992,205  
Specialty Chemicals
     5,796,941       —       —       5,796,941  
Repurchase Agreements
     —       475,000       —       475,000  
 
                                
 
Total Investments in an Asset Position
   $ 56,436,174     $ 475,000     $ —     $ 56,911,174  
 
                                
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 Exchange 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