N-Q 1 c47092nvq.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 811-02611
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: 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 Exchange Fund
Portfolio of Investments < September 30, 2008 (Unaudited)
                 
    Number of        
Description   Shares     Value  
Common Stocks 96.4%
                
Aerospace & Defense 0.8%
                
Honeywell International, Inc.
     12,528     $ 520,538  
 
              
 
                
Coal & Consumable Fuels 0.7%
                
Massey Energy Corp.
     12,831       457,682  
 
              
 
                
Commodity Chemicals 0.0%
                
Tronox, Inc., Class B
    2,197       231  
 
              
 
                
Computer Hardware 2.6%
                
IBM Corp.
     15,016       1,756,271  
 
              
 
                
Construction & Engineering 2.1%
                
Fluor Corp.
     25,662       1,429,373  
 
              
 
                
Diversified Banks 1.4%
                
HSBC Holdings PLC — ADR (United Kingdom)
    11,434       924,210  
 
              
 
                
Forest Products 0.4%
                
Louisiana-Pacific Corp.
     25,970       241,521  
 
              
 
                
Health Care Distributors 0.1%
                
Cardinal Health, Inc.
     1,867       92,006  
 
              
 
                
Health Care Equipment 1.1%
                
Baxter International, Inc.
     10,000       656,300  
Edwards Lifesciences Corp. (a)
    1,000       57,760  
 
              
 
             714,060  
 
              
 
                
Health Care Services 0.8%
                
Medco Health Solutions, Inc. (a)
    12,150       546,750  
 
              
 
                
Industrial Gases 7.7%
                
Air Products & Chemicals, Inc.
     75,539       5,173,666  
 
              
 
                
Industrial Machinery 1.6%
                
SPX Corp.
     13,648       1,050,896  
 
              

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Van Kampen Exchange Fund
Portfolio of Investments < September 30, 2008 (Unaudited)
                 
    Number of        
Description   Shares     Value  
Integrated Oil & Gas 20.0%
                
BP PLC — ADR (United Kingdom)
    33,876     $ 1,699,559  
Exxon Mobil Corp.
     82,523       6,408,736  
Hess Corp.
     63,600       5,220,288  
 
              
 
             13,328,583  
 
              
 
                
Multi-Line Insurance 0.2%
                
American International Group, Inc.
     41,688       138,821  
 
              
 
                
Office Services & Supplies 2.2%
                
IKON Office Solutions, Inc.
     86,993       1,479,751  
 
              
 
                
Oil & Gas Drilling 0.4%
                
Transocean, Inc. (Cayman Islands) (a)
    2,177       239,122  
 
              
 
                
Oil & Gas Equipment & Services 9.0%
                
Baker Hughes, Inc.
     25,634       1,551,882  
Halliburton Co.
     60,640       1,964,130  
Schlumberger Ltd. (Netherlands Antilles)
    32,160       2,511,374  
 
              
 
             6,027,386  
 
              
 
                
Oil & Gas Exploration & Production 4.1%
                
Apache Corp.
     26,346       2,747,361  
 
              
 
                
Packaged Foods & Meats 5.6%
                
McCormick & Co., Inc.
     96,518       3,711,117  
 
              
 
                
Pharmaceuticals 22.0%
                
Johnson & Johnson
    78,636       5,447,902  
Merck & Co., Inc.
     50,376       1,589,867  
Pfizer, Inc.
     176,611       3,256,707  
Schering-Plough Corp.
     125,158       2,311,668  
Wyeth
    56,000       2,068,640  
 
              
 
             14,674,784  
 
              
 
                
Restaurants 0.2%
                
Luby’s Cafeterias, Inc. (a)
    13,367       107,471  
 
              

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Van Kampen Exchange Fund
Portfolio of Investments < September 30, 2008 (Unaudited)
                 
    Number of        
Description   Shares     Value  
Semiconductors 6.1%
                
Intel Corp.
     216,837     $ 4,061,357  
 
              
 
                
Specialized REIT’s 1.9%
                
Plum Creek Timber Co., Inc.
     25,602       1,276,516  
 
              
 
                
Specialty Chemicals 5.4%
                
International Flavors & Fragrances, Inc.
     49,712       1,961,635  
Lubrizol Corp.
     37,620       1,622,927  
 
              
 
             3,584,562  
 
              
 
                
Total Long-Term Investments 96.4%
                
(Cost $5,830,531)
            64,284,035  
 
              
 
                
Repurchase Agreements 3.6%
                
Banc of America Securities ($895,947 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 $895,998)
     895,947  
Citigroup Global Markets, Inc. ($895,947 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 $895,984)
     895,947  
JPMorgan Chase & Co. ($268,784 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 $268,792)
     268,784  
State Street Bank & Trust Co. ($353,322 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 $353,335)
     353,322  
 
              
 
                
Total Repurchase Agreements 3.6%
                
(Cost $2,414,000)
            2,414,000  
 
              
 
                
Total Investments 100.0%
                
(Cost $8,244,531)
            66,698,035  
 
                
Other Assets in Excess of Liabilities 0.0%
            18,468  
 
              
 
                
Net Assets 100.0%
          $ 66,716,503  
 
              
Percentages are calculated as a percentage of net assets.
(a) Non-income producing security.
ADR — American Depositary Receipt
REIT — Real Estate Investment Trust

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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)
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
   $ 64,284,035  
Level 2 — Other Significant Observable Inputs
     2,414,000  
Level 3 — Significant Unobservable Inputs
     -0-  
 
      
Total
   $ 66,698,035  
 
      
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 are not readily available, valuations are determined in accordance with procedures established in good faith by the Managing General Partners. Short-term securities with remaining maturities of 60 days or less are valued at amortized cost, which approximates market value.

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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 Exchange 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