-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ll6nQeeyoWl4uBj+LuC1a/w0sS/wOwXT6gUdZrYTLbrKuNB95DEJyRM8vJ6EzpIh 0HW5+8e8sfjJIBMu7h833w== 0000950137-03-003644.txt : 20030630 0000950137-03-003644.hdr.sgml : 20030630 20030630163306 ACCESSION NUMBER: 0000950137-03-003644 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030430 FILED AS OF DATE: 20030630 EFFECTIVENESS DATE: 20030630 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VAN KAMPEN PENNSYLVANIA VALUE MUNICIPAL INCOME TRUST CENTRAL INDEX KEY: 0000895528 IRS NUMBER: 367017427 STATE OF INCORPORATION: PA FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-07398 FILM NUMBER: 03764827 BUSINESS ADDRESS: STREET 1: ONE PARKVIEW PLAZA STREET 2: VAN KAMPEN INVESTMENTS INC CITY: OAKBROOK TERRACE STATE: IL ZIP: 60181 BUSINESS PHONE: 6306846774 MAIL ADDRESS: STREET 1: VAN KAMPEN INVESTMENTS INC STREET 2: ONE PARKVIEW PLAZA CITY: OAKBROOK TERRACE STATE: IL ZIP: 60181 FORMER COMPANY: FORMER CONFORMED NAME: VAN KAMPEN AMERICAN CAPITAL PENNSYLVANIA VALUE MUNIC INCO TR DATE OF NAME CHANGE: 19971007 FORMER COMPANY: FORMER CONFORMED NAME: VAN KAMPEN MERRITT PENNSYLVANIA VALUE MUNICIPAL INCOME TRUST DATE OF NAME CHANGE: 19930328 N-CSR 1 c77307nvcsr.txt SEMIANNUAL REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-7398 Van Kampen Pennsylvania Value Municipal Income Trust - -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) 1221 Avenue of the Americas NY NY 10020 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Ronald Robison 1221 Avenue of the Americas New York, NY 10020 - -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 212-762-4000 ----------------------------- Date of fiscal year end: 10/31/03 ----------- Date of reporting period: 04/30/03 ----------- Item 1. Report to Shareholders PERFORMANCE SUMMARY RETURN HIGHLIGHTS (as of April 30, 2003) - ------------------------------ NYSE Ticker Symbol - VPV - ------------------------------ - ----------------------------------------------------------------------- Six-month total return(1) 4.00% - ----------------------------------------------------------------------- One-year total return(1) 11.66% - ----------------------------------------------------------------------- Five-year average annual total return(1) 9.33% - ----------------------------------------------------------------------- Ten-year average annual total return(1) 6.71% - ----------------------------------------------------------------------- Life-of-Trust average annual total return(1) 6.71% - ----------------------------------------------------------------------- Commencement date 04/30/93 - ----------------------------------------------------------------------- Distribution rate as a % of closing common share market price(2) 6.70% - ----------------------------------------------------------------------- Taxable-equivalent distribution rate as a % of closing common share market price(3) 11.22% - ----------------------------------------------------------------------- Preferred share rate(4) 1.150% - ----------------------------------------------------------------------- Net asset value $16.59 - ----------------------------------------------------------------------- Closing common share market price $15.94 - ----------------------------------------------------------------------- Six-month high common share market price (04/10/03) $16.07 - ----------------------------------------------------------------------- Six-month low common share market price (12/23/02) $15.13 - -----------------------------------------------------------------------
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE 1 (1) Total return assumes an investment at the common share market price at the beginning of the period indicated, reinvestment of all distributions for the period in accordance with the Trust's dividend reinvestment plan, and sale of all shares at the closing common share market price at the end of the period indicated. (2) Distribution rate represents the monthly annualized distributions of the Trust at the end of the period and not the earnings of the Trust. (3) The taxable-equivalent distribution rate is calculated assuming the maximum 40.3% combined federal and state income tax rate effective for calendar year 2003, which takes into consideration the deductibility of individual state taxes paid. (4) See "Notes to Financial Statements" footnote #5, for more information concerning Preferred Share reset periods. A portion of the interest income may be taxable for those investors subject to the federal alternative minimum tax (AMT). Past performance is no guarantee of future results. Investment return, common share market price and net asset value will fluctuate and Trust shares, when sold, may be worth more or less than their original cost. An investment in the Trust is subject to investment risks, and you could lose money on your investment in the Trust. As a result of recent market activity, current performance may vary from the figures shown. For more up-to-date information, please visit vankampen.com or speak with your financial advisor. 2 PORTFOLIO AT A GLANCE CREDIT QUALITY (as a percentage of long-term investments)
As of April 30, 2003 AAA/Aaa........................... 73.2% AA/Aa............................. 13.6% A/A............................... 4.8% BBB/Baa........................... 8.4%
TOP FIVE SECTORS (as a percentage of long-term investments)
As of April 30, 2003 General Purpose................... 17.7% Health Care....................... 15.5% Higher Education.................. 15.5% Public Education.................. 13.7% Single-Family Housing............. 12.1%
Based upon the credit quality ratings as issued by Standard & Poor's Credit Market Services/Moody's Investor Services, respectively. Subject to change daily. NET ASSET VALUE AND COMMON SHARE MARKET PRICE (based upon quarter-end values--April 1993 through April 2003) [LINE GRAPH]
NET ASSET VALUE COMMON SHARE MARKET PRICE --------------- ------------------------- 4/93 $14.9000 $15.0000 6/93 $15.2600 $14.5000 $15.7900 $14.8750 $15.7400 $14.5000 $13.5100 $12.6250 6/94 $13.4200 $12.8750 $13.1700 $11.2500 $12.5300 $10.7500 $13.9500 $12.7500 6/95 $14.1000 $12.8750 $14.3800 $12.3750 $15.1400 $12.3750 $14.5200 $12.7500 6/96 $14.3300 $12.0000 $14.6700 $12.2500 $14.9600 $12.3750 $14.5800 $12.3750 6/97 $15.0600 $13.0625 $15.4400 $13.6250 $15.7500 $13.6250 $15.7700 $14.2500 6/98 $15.7700 $14.5000 $16.0900 $14.7500 $15.9000 $14.9375 $15.8200 $14.5000 6/99 $15.1300 $13.6875 $14.6900 $13.0000 $14.2200 $11.8750 $14.5200 $12.0000 6/00 $14.5400 $12.6875 $14.7300 $12.6875 $15.5800 $12.9375 $15.6500 $13.4000 6/01 $15.5200 $14.2200 $15.8500 $14.7000 $15.4500 $14.6000 $15.3200 $14.9700 6/02 $15.8800 $16.0000 $16.7100 $16.5000 $16.4400 $15.6400 $16.4400 $16.0000 4/03 $16.5900 $15.9400
The solid line above represents the trust's net asset value (NAV), which indicates overall changes in value among the trust's underlying securities. The trust's common share market price is represented by the dashed line, which indicates the price the market is willing to pay for shares of the trust at a given time. Common share market price is influenced by a range of factors, including supply and demand and market conditions. 3 Q&A WITH YOUR PORTFOLIO MANAGER WE RECENTLY SPOKE WITH THE MANAGEMENT TEAM OF VAN KAMPEN PENNSYLVANIA VALUE MUNICIPAL INCOME TRUST ABOUT THE KEY EVENTS AND ECONOMIC FORCES THAT SHAPED THE MARKETS AND INFLUENCED THE TRUST'S RETURN DURING THE SIX MONTHS ENDED APRIL 30, 2003. DENNIS PIETRZAK, PORTFOLIO MANAGER, HAS MANAGED THE TRUST SINCE 1995 AND HAS WORKED IN THE INVESTMENT INDUSTRY SINCE 1968. THE FOLLOWING DISCUSSION REFLECTS HIS VIEWS ON THE TRUST'S PERFORMANCE. Q WHAT WAS THE MARKET ENVIRONMENT OF THE PAST SIX MONTHS? A The environment over the past six months has been defined by two major themes. The first of these was the level of interest rates. The period began with interest rates at levels not seen in over three decades and, surprisingly for many, ended with rates slightly lower. The Federal Reserve Board (the Fed) helped keep rates low with a widely anticipated rate cut in November, driven by economic uncertainty and geopolitical risk. The low level of rates led to a boom in issuance by municipalities seeking to lock in low financing costs. As a result, issuance reached a record level of $354 billion in 2002 and continued to be exceptional in the first quarter of 2003. The other theme in the market during the period was the relative attractiveness of municipal bonds, which produced enough demand to absorb the record issuance. Investors, wary of volatility in the equity market and in the geopolitical arena, flocked to perceived safe haven investments. Their risk aversion counteracted growing expectations for economic recovery and rising interest rates, and was a key factor in keeping interest rates at historically low levels. In their ongoing preference for low-risk assets, investors bid Treasury prices up to such high levels that municipal bonds became as attractively valued as they have ever been relative to Treasuries. Insurance companies also moved heavily into municipal bonds as their mainstay corporate bond holdings became less attractive. At the same time, issuers recognized investor concerns over economic weakness by insuring roughly 50 percent of all issuance. This credit enhancement feature made municipal bonds even more attractive to risk-averse investors. While lower financing costs were a boon to municipal issuers, the continuing weakness in the economy had a negative impact on municipal credit quality, particularly in the first quarter of 2003. Moody's upgrades barely exceeded the number of downgrades in the first quarter, with credit quality facing continued pressure 4 from rising social service costs and weak national and regional economic conditions. As a result, municipalities face enormous deficits in 2003, when their combined shortfall is expected to reach $90 billion. Performance along the yield curve was varied. The Fed's November rate cut fueled a rally in short-term bonds that helped pull yields lower at the front end of the curve. Despite that rally, the best performing segment of the curve was the long-intermediate portion where performance was largely driven by buying activity among institutional investors drawn by the bonds' attractive total return potential. While it has been slow, the Pennsylvania economy has fared relatively well compared to many other big states. Pennsylvania's government has a history of fiscal restraint that has served the state well in such situations. The state also has a long tradition of actively refinancing its debt to lock in lower financing rates during periods of low or falling interest rates, and the past six months were no exception. Q HOW DID THE TRUST PERFORM IN THIS ENVIRONMENT? A The trust's monthly dividend of $0.0890 per share translated to a distribution rate of 6.70 percent based on the trust's closing common share market price on April 30, 2003. Based on these figures, investors would have to earn a distribution rate of 11.22 percent on a taxable investment (for an investor in the 40.30 percent combined federal and state income tax bracket) to match the tax-exempt yield provided by the trust. For the six months through April 30, 2003, the trust produced a total return of 4.00 percent based on common share market price. By comparison, the Lehman Brothers Pennsylvania Municipal Bond Index posted a total return of 3.79 percent for the same period. Of course, past performance is no guarantee of future results. Investment return, common share market price and net asset value will fluctuate and trust shares, when sold, may be worth more or less than their original cost. As a result of recent market activity, current performance may vary from the figures shown. For more up-to-date information, please visit vankampen.com or speak with your financial advisor. The Lehman Brothers Pennsylvania Municipal Bond Index is an unmanaged, broad-based statistical composite of municipal bonds. Index returns do not include any sales charges or fees that would be paid by an investor purchasing the securities the index represents. Such costs would lower performance. It is not possible to invest directly in an index. For additional information, please refer to the performance summary section. Q WHAT STRATEGIES DID YOU PURSUE IN MANAGING THE TRUST? A With yields hovering near record lows, we focused on protecting the trust from the potential adverse effects of rising interest rates while maintaining the trust's yield. One of our primary methods for doing this was to purchase premium bonds with maturities of between 15 and 20 years. Our quantitative analysis showed that this segment of the yield curve offered the optimal combination of total return 5 potential as well as the potential for downside protection in the form of a comfortable yield cushion and an intermediate maturity profile. The funds for these purchases came from a number of sources. Some of the portfolio's holdings were called by their issuers, and we sold others that were prerefunded. We also trimmed the trust's exposure to deep discount bonds with coupons below 5 percent when retail investors bid the bonds' prices up to attractive levels. While the trust remained well diversified, our trading activity did have some effect on the portfolio's sector composition. The largest sector change was in the trust's transportation holdings. Several of the deep discount issues that we sold were from issuers such as the Southeastern Pennsylvania Transit Authority (SEPTA) and the Pennsylvania Turnpike. These sales resulted in a 5 percent reduction in the portfolio's transportation exposure. 6 BY THE NUMBERS YOUR TRUST'S INVESTMENTS April 30, 2003 (Unaudited) THE FOLLOWING PAGES DETAIL YOUR TRUST'S PORTFOLIO OF INVESTMENTS AT THE END OF THE REPORTING PERIOD.
PAR AMOUNT MARKET (000) DESCRIPTION COUPON MATURITY VALUE MUNICIPAL BONDS 159.9% PENNSYLVANIA 151.6% $1,000 Allegheny Cnty, PA Arpt Auth Pittsburgh Intl Arpt Rfdg (FGIC Insd).............. 5.750% 01/01/18 $ 1,086,220 1,360 Allegheny Cnty, PA Hosp Dev Auth Rev Hlth Sys Ser A (MBIA Insd).............. 6.500 11/15/30 1,621,555 800 Allegheny Cnty, PA Indl Dev Auth Med Ctr Rev Presbyterian Med Ctr Rfdg (FHA Gtd).................................... 6.750 02/01/26 844,600 2,000 Allegheny Cnty, PA Port Auth Spl Rev Trans (Prerefunded @ 03/01/09) (MBIA Insd)................................... 6.000 03/01/24 2,367,840 985 Allegheny Cnty, PA Residential Mtg Single Family Ser KK-2 (GNMA Collateralized)......................... 5.750 05/01/33 1,031,492 1,525 Allegheny Cnty, PA Residential Mtg Single Family Ser MM (GNMA Collateralized) (a)..................... 4.000/5.200 05/01/33 1,522,972 1,000 Allegheny Cnty, PA San Auth Swr Rev (MBIA Insd)............................. 5.500 12/01/24 1,087,700 2,600 Allentown, PA Area Hosp Auth Rev Sacred Heart Hosp of Allentown Ser A Rfdg...... 6.750 11/15/14 2,604,680 2,580 Bensalem Twp, PA Sch Dist (FGIC Insd)... 5.000 08/15/17 2,785,703 2,775 Bensalem Twp, PA Sch Dist (FGIC Insd)... 5.000 08/15/20 2,938,697 2,000 Berks Cnty, PA Muni Auth Hosp Rev Reading Hosp & Med Ctr Proj (Prerefunded @ 11/01/09) (FSA Insd).................. 6.000 11/01/29 2,413,860 1,000 Canon McMillan Sch Dist PA Ser B (FGIC Insd)................................... 5.500 12/01/29 1,086,850 945 Carbon Cnty, PA Indl Dev Auth Panther Creek Partn Proj Rfdg (LOC: Paribas & Union Bk of CA Intl).................... 6.650 05/01/10 988,810 1,500 Chichester Sch Dist PA (FGIC Insd)...... * 03/01/19 736,215 1,000 Cumberland Cnty, PA Muni Auth Dickinson College Ser A (AMBAC Insd).............. 5.500 11/01/30 1,086,680 1,000 Delaware Cnty, PA Auth College Neumann College Rfdg............................ 6.000 10/01/31 1,027,520
See Notes to Financial Statements 7 YOUR TRUST'S INVESTMENTS April 30, 2003 (Unaudited)
PAR AMOUNT MARKET (000) DESCRIPTION COUPON MATURITY VALUE PENNSYLVANIA (CONTINUED) $1,000 Delaware Cnty, PA Auth Hosp Rev Crozer Chester Med Ctr......................... 6.000% 12/15/09 $ 1,027,750 1,500 Delaware Vly, PA Regl Fin Auth.......... 5.750 07/01/17 1,763,025 2,000 Lehigh Cnty, PA Gen Purp Auth Cedar Crest College Rfdg...................... 6.700 04/01/26 2,089,940 1,000 Luzerne Cnty, PA Ser A (MBIA Insd)...... 5.250 11/15/25 1,060,430 5,000 Lycoming Cnty, PA Auth College Rev PA College of Technology (AMBAC Insd) (b)..................................... 5.375 07/01/30 5,259,250 1,000 Mercer Cnty, PA (FGIC Insd)............. 5.500 10/01/15 1,129,550 1,000 Mifflin Cnty, PA Hosp Auth (Asset Gty Insd)................................... 6.200 07/01/25 1,110,290 1,150 Monroeville, PA Muni Auth San Swr Rev Ser B (MBIA Insd)....................... 5.250 12/01/17 1,267,818 1,000 Montgomery Cnty, PA Higher Edl & Hlth Auth Hosp Rev Abington Mem Hosp Ser A (AMBAC Insd)............................ 5.125 06/01/24 1,011,610 1,500 Montgomery Cnty, PA Higher Edl & Hlth Auth Hosp Rev Abington Mem Hosp Ser A... 5.125 06/01/32 1,475,415 1,000 Montgomery Cnty, PA Indl Dev Auth Rev Res Rec Montenay Proj Ser A (MBIA Insd)................................... 5.250 11/01/14 1,132,610 1,225 Northampton Twp, PA (FGIC Insd)......... 5.375 05/15/15 1,364,319 1,735 Pennsylvania Hsg Fin Agy Single Family Mtg Ser 40.............................. 6.900 04/01/25 1,789,548 3,000 Pennsylvania Hsg Fin Agy Single Family Mtg Ser 41B Rfdg........................ 6.450 10/01/12 3,079,800 1,000 Pennsylvania Hsg Fin Agy Single Family Mtg Ser 53A............................. 6.050 04/01/18 1,053,350 2,000 Pennsylvania Hsg Fin Agy Single Family Mtg Ser 54A Rfdg (FHA/VA Gtd)........... 6.050 10/01/16 2,112,540 1,000 Pennsylvania Hsg Fin Agy Single Family Mtg Ser 56A (FHA/VA Gtd)................ 6.050 10/01/16 1,061,110 1,500 Pennsylvania Intergvtl Coop Auth Spl Tax Rev Philadelphia Fdg Pgm Rfdg (FGIC Insd)................................... 5.500 06/15/20 1,636,305 4,275 Pennsylvania St Ctf Partn Ser A Rfdg (AMBAC Insd)............................ 5.250 07/01/10 4,372,855 1,000 Pennsylvania St Higher Edl Bryn Mawr College (AMBAC Insd).................... 5.250 12/01/12 1,142,930
See Notes to Financial Statements 8 YOUR TRUST'S INVESTMENTS April 30, 2003 (Unaudited)
PAR AMOUNT MARKET (000) DESCRIPTION COUPON MATURITY VALUE PENNSYLVANIA (CONTINUED) $1,000 Pennsylvania St Higher Edl Fac Auth College & Univ Rev Bryn Mawr College (MBIA Insd)............................. 5.625% 12/01/17 $ 1,132,430 1,000 Pennsylvania St Higher Edl Fac Auth Rev Drexel Univ............................. 5.500 05/01/17 1,094,030 1,000 Pennsylvania St Higher Edl Fac Auth Rev Thomas Jefferson Univ................... 5.375 01/01/25 1,052,300 2,000 Pennsylvania St Higher Edl UPMC Hlth Sys Ser A................................... 6.000 01/15/31 2,090,080 1,000 Pennsylvania St Indl Dev Auth Econ Dev (AMBAC Insd)............................ 5.500 07/01/14 1,148,930 2,000 Pennsylvania St Pub Sch Bldg Auth Lehigh Career & Technical Inst (FGIC Insd)..... 5.250 10/01/32 2,104,980 3,015 Pennsylvania St Tpk Commn Ser T Rfdg (FGIC Insd)............................. 5.500 12/01/10 3,486,848 2,000 Pennsylvania St Tpk Commn Tpk Rev Ser R (AMBAC Insd)............................ 5.000 12/01/26 2,067,220 1,500 Philadelphia, PA (FSA Insd)............. 5.250 09/15/25 1,577,385 2,000 Philadelphia, PA Auth for Indl Dev Rev Rfdg.................................... 5.500 07/01/10 2,046,060 1,000 Philadelphia, PA Auth Indl Dev Amern College Of Physicians................... 5.500 06/15/27 1,042,250 1,000 Philadelphia, PA Hosp & Higher Edl Fac Auth Hosp Rev PA Hosp Rfdg (Escrowed to Maturity)............................... 6.250 07/01/06 1,133,320 1,455 Philadelphia, PA Hosp & Higher Edl Fac Auth Rev Cmnty College Ser B Rfdg (MBIA Insd)................................... 6.500 05/01/09 1,742,479 2,000 Philadelphia, PA Sch Dist Ser B (AMBAC Insd)................................... 5.500 09/01/18 2,174,660 3,000 Philadelphia, PA Ser A Rfdg (FGIC Insd)................................... 6.250 11/15/04 3,225,900 3,675 Philadelphia, PA Wtr & Wastewtr Rev Rfdg (AMBAC Insd)............................ 5.500 06/15/07 4,155,139 4,500 Pittsburgh & Allegheny Cnty, PA Pub Aud Regl Asset Dist Sales Tax (AMBAC Insd)................................... 5.000 02/01/24 4,627,800 2,000 Pittsburgh, PA Ser A (Prerefunded @ 09/01/09) (FGIC Insd)................... 5.750 09/01/22 2,344,340 1,000 Pittsburgh, PA Urban Redev Auth Mtg Rev Ser C Rfdg.............................. 6.500 10/01/23 1,038,610 1,600 Pittsburgh, PA Urban Redev Auth Mtg Rev Ser C Rfdg (GNMA Collateralized)........ 5.700 04/01/30 1,655,216
See Notes to Financial Statements 9 YOUR TRUST'S INVESTMENTS April 30, 2003 (Unaudited)
PAR AMOUNT MARKET (000) DESCRIPTION COUPON MATURITY VALUE PENNSYLVANIA (CONTINUED) $1,000 Southcentral, PA Gen Auth Rev Wellspan Hlth Oblig (MBIA Insd).................. 5.375% 05/15/28 $ 1,050,060 1,000 State Pub Sch Bldg Auth PA Delaware Cnty College Proj (MBIA Insd)................ 5.750 10/01/16 1,152,510 1,000 State Pub Sch Bldg Auth PA Sch Rev Conneaut Sch Dist Proj (FGIC Insd) (c)..................................... 5.250 11/01/19 1,094,210 1,500 Washington Cnty, PA Auth Rev Cap Fdg Cap Proj & Equip Pgm (AMBAC Insd)........... 6.150 12/01/29 1,808,670 1,350 Washington Cnty, PA Ser A (AMBAC Insd)................................... 5.125 09/01/27 1,407,807 1,000 Wayne Highlands, PA Sch Dist (FSA Insd)................................... 5.375 04/01/14 1,127,850 1,000 Wilson, PA Area Sch Dist (FGIC Insd).... 5.125 03/15/16 1,098,340 500 York Cnty, PA Sch Technology (FGIC Insd) (c)......................... 5.500 02/15/22 547,295 1,000 York Cnty, PA Sch Technology (FGIC Insd) (c)......................... 5.500 02/15/23 1,090,330 ------------ 112,488,888 ------------ PUERTO RICO 6.8% 4,000 Puerto Rico Comwlth Hwy & Tran Auth Hwy Rev Ser Y Rfdg (FSA Insd)............... 6.250 07/01/21 5,002,440 ------------ U. S. VIRGIN ISLANDS 1.5% 1,000 Virgin Islands Pub Fin Auth Rev Gross Rcpts Taxes Nt Ser A.................... 6.375 10/01/19 1,115,930 ------------ TOTAL INVESTMENTS 159.9% (Cost $109,496,077).................................................... 118,607,258 OTHER ASSETS IN EXCESS OF LIABILITIES 0.8%.............................. 596,724 PREFERRED SHARES (INCLUDING ACCRUED DISTRIBUTIONS) (60.7%).............. (45,009,918) ------------ NET ASSETS APPLICABLE TO COMMON SHARES 100.0%........................... $ 74,194,064 ============
See Notes to Financial Statements 10 YOUR TRUST'S INVESTMENTS April 30, 2003 (Unaudited) * Zero coupon bond (a) Security is a "step-up" bond where the coupon increases or steps up at a predetermined date. (b) Assets segregated as collateral for when-issued or delayed delivery purchase commitments. (c) Securities purchased on a when-issued or delayed delivery basis. AMBAC--AMBAC Indemnity Corp. Asset Gty--Asset Guaranty Insurance Co. FGIC--Financial Guaranty Insurance Co. FHA--Federal Housing Administration FHA/VA--Federal Housing Administration/Department of Veterans Affairs FSA--Financial Security Assurance Inc. GNMA--Government National Mortgage Association LOC--Letter of Credit MBIA--Municipal Bond Investors Assurance Corp. See Notes to Financial Statements 11 FINANCIAL STATEMENTS Statement of Assets and Liabilities April 30, 2003 (Unaudited) ASSETS: Total Investments (Cost $109,496,077)....................... $118,607,258 Receivables: Investments Sold.......................................... 2,135,927 Interest.................................................. 1,809,459 Other....................................................... 216 ------------ Total Assets............................................ 122,552,860 ------------ LIABILITIES: Payables: Investments Purchased..................................... 2,693,845 Custodian Bank............................................ 411,607 Investment Advisory Fee................................... 58,366 Administrative Fee........................................ 4,864 Affiliates................................................ 2,962 Trustees' Deferred Compensation and Retirement Plans........ 147,050 Accrued Expenses............................................ 30,184 ------------ Total Liabilities....................................... 3,348,878 Preferred Shares (including accrued distributions).......... 45,009,918 ------------ NET ASSETS APPLICABLE TO COMMON SHARES...................... $ 74,194,064 ============ NET ASSET VALUE PER COMMON SHARE ($74,194,064 divided by 4,472,625 shares outstanding)............................. $ 16.59 ============ NET ASSETS CONSIST OF: Common Shares ($.01 par value with an unlimited number of shares authorized, 4,472,625 shares issued and outstanding).............................................. $ 44,726 Paid in Surplus............................................. 64,627,048 Net Unrealized Appreciation................................. 9,111,181 Accumulated Undistributed Net Investment Income............. 854,303 Accumulated Net Realized Loss............................... (443,194) ------------ NET ASSETS APPLICABLE TO COMMON SHARES...................... $ 74,194,064 ============ PREFERRED SHARES ($.01 par value, authorized 100,000,000 shares, 1,800 issued with liquidation preference of $25,000 per share)........................................ $ 45,000,000 ============ NET ASSETS INCLUDING PREFERRED SHARES....................... $119,194,064 ============
See Notes to Financial Statements 12 Statement of Operations For the Six Months Ended April 30, 2003 (Unaudited) INVESTMENT INCOME: Interest.................................................... $3,053,666 ---------- EXPENSES: Investment Advisory Fee..................................... 350,411 Preferred Share Maintenance................................. 66,407 Administrative Fee.......................................... 29,200 Trustees' Fees and Related Expenses......................... 22,433 Legal....................................................... 8,697 Custody..................................................... 3,327 Other....................................................... 64,635 ---------- Total Expenses.......................................... 545,110 ---------- NET INVESTMENT INCOME....................................... $2,508,556 ========== REALIZED AND UNREALIZED GAIN/LOSS: Net Realized Gain........................................... $1,402,152 ---------- Unrealized Appreciation/Depreciation: Beginning of the Period................................... 8,307,151 End of the Period......................................... 9,111,181 ---------- Net Unrealized Appreciation During the Period............... 804,030 ---------- NET REALIZED AND UNREALIZED GAIN............................ $2,206,182 ========== DISTRIBUTIONS TO PREFERRED SHAREHOLDERS..................... $ (254,006) ========== NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM OPERATIONS................................................ $4,460,732 ==========
See Notes to Financial Statements 13 Statements of Changes in Net Assets (Unaudited)
SIX MONTHS ENDED YEAR ENDED APRIL 30, 2003 OCTOBER 31, 2002 ------------------------------------ FROM INVESTMENT ACTIVITIES: Operations: Net Investment Income.............................. $ 2,508,556 $ 5,123,267 Net Realized Gain.................................. 1,402,152 534,357 Net Unrealized Appreciation/Depreciation During the Period........................................... 804,030 (145,741) Distributions to Preferred Shareholders: Net Investment Income............................ (254,006) (680,734) ----------- ----------- Change in Net Assets Applicable to Common Shares from Operations.................................. 4,460,732 4,831,149 Distributions to Common Shareholders: Net Investment Income............................ (2,374,739) (4,442,637) ----------- ----------- NET CHANGE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM INVESTMENT ACTIVITIES................ 2,085,993 388,512 FROM CAPITAL TRANSACTIONS: Value of Common Shares Issued Through Dividend Reinvestment..................................... -0- 59,550 ----------- ----------- TOTAL INCREASE IN NET ASSETS APPLICABLE TO COMMON SHARES........................................... 2,085,993 448,062 NET ASSETS APPLICABLE TO COMMON SHARES: Beginning of the Period............................ 72,108,071 71,660,009 ----------- ----------- End of the Period (Including accumulated undistributed net investment income of $854,303 and $974,492, respectively)...................... $74,194,064 $72,108,071 =========== ===========
See Notes to Financial Statements 14 Financial Highlights (Unaudited) THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE TRUST OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
SIX MONTHS ENDED APRIL 30, ------------------- 2003 2002 (c) 2001 -------------------------------- NET ASSET VALUE, BEGINNING OF THE PERIOD (a)............ $ 16.12 $ 16.04 $ 14.89 ------- ------- ------- Net Investment Income................................. .56 1.14 1.21 Net Realized and Unrealized Gain/Loss................. .50 .08 1.07 Common Share Equivalent of Distributions Paid to Preferred Shareholders: Net Investment Income............................... (.06) (.15) (.33) Net Realized Gain................................... -0- -0- -0- ------- ------- ------- Total from Investment Operations........................ 1.00 1.07 1.95 Distributions Paid to Common Shareholders: Net Investment Income............................... (.53) (.99) (.80) Net Realized Gain................................... -0- -0- -0- ------- ------- ------- NET ASSET VALUE, END OF THE PERIOD...................... $ 16.59 $ 16.12 $ 16.04 ======= ======= ======= Common Share Market Price at End of the Period.......... $ 15.94 $ 15.85 $ 15.11 Total Return (b)........................................ 4.00%* 11.76% 30.60% Net Assets Applicable to Common Shares at End of the Period (In millions).................................. $ 74.2 $ 72.1 $ 71.7 Ratio of Expenses to Average Net Assets Applicable to Common Shares (d)..................................... 1.51% 1.60% 1.83% Ratio of Net Investment Income to Average Net Assets Applicable to Common Shares (d)....................... 6.95% 7.22% 7.78% Portfolio Turnover...................................... 12%* 16% 20% SUPPLEMENTAL RATIOS: Ratio of Expenses to Average Net Assets Including Preferred Shares (d).................................. .93% .98% 1.11% Ratio of Net Investment Income to Average Net Assets Applicable to Common Shares (e)....................... 6.24% 6.26% 5.64% SENIOR SECURITIES: Total Preferred Shares Outstanding...................... 1,800 1,800 1,800 Asset Coverage Per Preferred Share (f).................. $66,224 $65,061 $64,811 Involuntary Liquidating Preference Per Preferred Share................................................. $25,000 $25,000 $25,000 Average Market Value Per Preferred Share................ $25,000 $25,000 $25,000
* Non-annualized ** Amount is less than .01. (a) Net Asset Value at April 30, 1993, is adjusted for common and preferred share offering costs of $.313 per common share. (b) Total return assumes an investment at the common share market price at the beginning of the period indicated, reinvestment of all distributions for the period in accordance with the Trust's dividend reinvestment plan, and sale of all shares at the closing common share market price at the end of the period indicated. (c) As required, effective November 1, 2001, the Trust has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on fixed income securities. The effect of this change for the year ended October 31, 2002 was to increase net investment income per share by $.01, decrease net realized and unrealized gains and losses per share by $.01 and increase the ratio of net investment income to average net assets applicable to common shares by .08%. Per share, ratios and supplemental data for periods prior to October 31, 2002 have not been restated to reflect this change in presentation. (d) Ratios do not reflect the effect of dividend payments to preferred shareholders. (e) Ratios reflect the effect of dividend payments to preferred shareholders. (f) Calculated by subtracting the Trust's total liabilities (not including the preferred shares) from the Trust's total assets and dividing this by the number of preferred shares outstanding. 15
APRIL 30, 1993 (COMMENCEMENT YEAR ENDED OCTOBER 31, OF INVESTMENT - ----------------------------------------------------------------------------- OPERATIONS) TO 2000 1999 1998 1997 1996 1995 1994 OCTOBER 31, 1993 - ------------------------------------------------------------------------------------------------ $ 14.42 $ 15.98 $ 15.48 $ 14.83 $ 14.68 $ 12.57 $ 15.67 $ 14.69 ------- -------- -------- -------- -------- -------- -------- -------- 1.15 1.12 1.13 1.13 1.13 1.14 1.14 .43 .52 (1.57) .49 .62 .13 2.19 (3.13) .90 (.42) (.33) (.35) (.35) (.36) (.40) (.28) (.07) -0- -0- -0- -0- -0- -0- -0-** -0- ------- -------- -------- -------- -------- -------- -------- -------- 1.25 (.78) 1.27 1.40 .90 2.93 (2.27) 1.26 (.78) (.78) (.77) (.75) (.75) (.82) (.82) (.28) -0- -0- -0- -0- -0- -0- (.01) -0- ------- -------- -------- -------- -------- -------- -------- -------- $ 14.89 $ 14.42 $ 15.98 $ 15.48 $ 14.83 $ 14.68 $ 12.57 $ 15.67 ======= ======== ======== ======== ======== ======== ======== ======== $ 12.25 $12.4375 $14.9375 $ 13.625 $ 12.625 $ 12.50 $ 10.375 $ 14.875 4.82% -11.99% 15.59% 14.26% 7.17% 28.60% -25.61% 1.00%* $ 66.5 $ 64.4 $ 71.4 $ 69.2 $ 66.3 $ 65.6 $ 56.2 $ 70.0 1.92% 1.87% 1.83% 1.91% 1.97% 2.03% 1.98% 1.55% 7.93% 7.23% 7.17% 7.51% 7.70% 8.27% 8.00% 5.67% 21% 28% 7% 9% 27% 43% 53% 9%* 1.13% 1.13% 1.12% 1.14% 1.17% 1.17% 1.16% 1.14% 5.04% 5.13% 4.93% 5.15% 5.24% 5.35% 6.09% 4.75% 1,800 1,800 900 900 900 900 900 900 $61,970 $ 60,800 $129,330 $126,872 $123,646 $122,900 $112,433 $127,819 $25,000 $ 25,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $25,000 $ 25,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
See Notes to Financial Statements 16 NOTES TO FINANCIAL STATEMENTS April 30, 2003 (Unaudited) 1. SIGNIFICANT ACCOUNTING POLICIES Van Kampen Pennsylvania Value Municipal Income Trust (the "Trust") is registered as a non-diversified, closed-end management investment company under the Investment Company Act of 1940, as amended. The Trust's investment objective is to provide a high level of current income exempt from federal and Pennsylvania income taxes and, where possible under local law, local income and personal property taxes, consistent with preservation of capital. The Trust will invest substantially all of its assets in Pennsylvania municipal securities rated investment grade at the time of investment. The Trust commenced investment operations on April 30, 1993. The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. A. SECURITY VALUATION Municipal bonds are valued by independent pricing services or dealers using the mean of the bid and asked prices or, in the absence of market quotations, at fair value based upon yield data relating to municipal bonds with similar characteristics and general market conditions. Securities which are not valued by independent pricing services or dealers are valued at fair value using 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. B. SECURITY TRANSACTIONS Security transactions are recorded on a trade date basis. Realized gains and losses are determined on an identified cost basis. The Trust may purchase and sell securities on a "when-issued" or "delayed delivery" basis with settlement to occur at a later date. The value of the security so purchased is subject to market fluctuations during this period. The Trust will maintain, in a segregated account with its custodian, assets having an aggregate value at least equal to the amount of the when-issued or delayed delivery purchase commitments until payment is made. As of April 30, 2003, the Trust had $2,693,845 of when-issued and delayed delivery purchase commitments. 17 NOTES TO FINANCIAL STATEMENTS April 30, 2003 (Unaudited) C. INVESTMENT INCOME Interest income is recorded on an accrual basis. Bond premium is amortized and discount is accreted over the expected life of each applicable security. D. FEDERAL INCOME TAXES It is the Trust's policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no provision for federal income taxes is required. The Trust intends to utilize provisions of the federal income tax laws which allow it to carry a realized capital loss forward for eight years following the year of the loss and offset these losses against any future realized gains. At October 31, 2002, the Trust had an accumulated capital loss carryforward for tax purposes of $1,845,346, which will expire between October 31, 2003 and October 31, 2007. Of this amount, $1,657,295 will expire on October 31, 2003. At April 30, 2003, the cost and related gross unrealized appreciation and depreciation are as follows: Cost of investments for tax purposes........................ $109,164,030 ============ Gross tax unrealized appreciation........................... $ 9,445,256 Gross tax unrealized deprecation............................ (2,028) ------------ Net tax unrealized appreciation on investments.............. $ 9,443,228 ============
E. DISTRIBUTION OF INCOME AND GAINS The Trust declares and pays monthly dividends from net investment income to common shareholders. Net realized gains, if any, are distributed annually on a pro rata basis to common and preferred shareholders. Distributions from net realized gains for book purposes may include short-term capital gains, which are included as ordinary income for tax purposes. The tax character of distributions paid during the year ended October 31, 2002 was as follows:
2002 Distributions paid from: Ordinary income........................................... $179,047 Long-term capital gain.................................... -0- -------- $179,047 ========
18 NOTES TO FINANCIAL STATEMENTS April 30, 2003 (Unaudited) As of October 31, 2002, the components of distributable earnings on a tax basis were as follows: Undistributed ordinary income............................... $15,447 Undistributed long-term capital gain........................ -0-
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES Under the terms of the Trust's Investment Advisory Agreement, Van Kampen Investment Advisory Corp. (the "Adviser") will provide investment advice and facilities to the Trust for an annual fee payable monthly of .60% of the average daily net assets of the Trust. In addition, the Trust will pay a monthly administrative fee to Van Kampen Investments Inc. or its affiliates (collectively "Van Kampen"), the Trust's Administrator, at an annual rate of ..05% of the average daily net assets of the Trust. The administrative services provided by the Administrator include record keeping and reporting responsibilities with respect to the Trust's portfolio and preferred shares and providing certain services to shareholders. For the six months ended April 30, 2003, the Trust recognized expenses of approximately $3,100 representing legal services provided by Skadden, Arps, Slate, Meagher, & Flom (Illinois), counsel to the Trust, of which a trustee of the Trust is an affiliated person. Under separate Accounting Services and Legal Services agreements, the Adviser provides accounting and legal services to the Trust. The Adviser allocates the cost of such services to each trust. For the six months ended April 30, 2003, the Trust recognized expenses of approximately $13,100 representing Van Kampen's cost of providing accounting and legal services to the Trust, which are reported as part of "Other" and "Legal" expenses, respectively, in the Statement of Operations. Certain officers and trustees of the Trust are also officers and directors of Van Kampen. The Trust does not compensate its officers or trustees who are officers of Van Kampen. The Trust provides deferred compensation and retirement plans for its trustees who are not officers of Van Kampen. Under the deferred compensation plan, trustees may elect to defer all or a portion of their compensation to a later date. Benefits under the retirement plan are payable upon retirement for a ten-year period and are based upon each trustee's years of service to the Trust. The maximum annual benefit per trustee under the plan is $2,500. 19 NOTES TO FINANCIAL STATEMENTS April 30, 2003 (Unaudited) 3. CAPITAL TRANSACTIONS At April 30, 2003 and October 31, 2002, paid in surplus related to common shares aggregated $64,627,048. Transactions in common shares were as follows:
SIX MONTHS ENDED YEAR ENDED APRIL 30, 2003 OCTOBER 31, 2002 Beginning Shares.................................. 4,472,625 4,468,924 Shares Issued Through Dividend Reinvestment....... -0- 3,701 --------- --------- Ending Shares..................................... 4,472,625 4,472,625 ========= =========
4. INVESTMENT TRANSACTIONS During the period, the cost of purchases and proceeds from sales of investments, excluding short-term investments, were $14,474,053 and $13,797,247, respectively. 5. PREFERRED SHARES The Trust has outstanding 1,800 Auction Preferred Shares ("APS"). Dividends are cumulative and the dividend rate is currently reset every seven days through an auction process. The rate in effect on April 30, 2003 was 1.150%. During the six months ended April 30, 2003, the rates ranged from 0.900% to 1.600%. The Trust pays annual fees equivalent to .25% of the preferred share liquidation value for the remarketing efforts associated with the preferred auctions. These fees are included as a component of "Preferred Share Maintenance" expense in the Statement of Operations. The APS are redeemable at the option of the Trust in whole or in part at the liquidation value of $25,000 per share plus accumulated and unpaid dividends. The Trust is subject to certain asset coverage tests and the APS are subject to mandatory redemption if the tests are not met. 6. DERIVATIVE FINANCIAL INSTRUMENTS A derivative financial instrument in very general terms refers to a security whose value is "derived" from the value of an underlying asset, reference rate or index. The Trust may seek to manage the portfolio's interest rate exposure in a changing interest rate environment by engaging in transactions involving interest rate swaps, caps, floors or collars. The Trust expects to enter into these transactions primarily as a hedge against anticipated interest rate or fixed-income market changes, for duration management purposes or for risk management purposes but may also enter into these transactions to generate additional income. Risks may arise as a result of the potential inability of the counterparties to meet the terms of their contracts or agreements. During the six months ended April 30, 2003, the Trust did not enter into any of these transactions. 20 BOARD OF TRUSTEES AND IMPORTANT ADDRESSES VAN KAMPEN PENNSYLVANIA VALUE MUNICIPAL INCOME TRUST BOARD OF TRUSTEES DAVID C. ARCH ROD DAMMEYER HOWARD J KERR THEODORE A. MYERS RICHARD F. POWERS, III* - Chairman HUGO F. SONNENSCHEIN WAYNE W. WHALEN* INVESTMENT ADVISOR VAN KAMPEN INVESTMENT ADVISORY CORP. 1 Parkview Plaza P.O. Box 5555 Oakbrook Terrace, IL 60181-5555 CUSTODIAN AND TRANSFER AGENT STATE STREET BANK AND TRUST COMPANY c/o EquiServe P.O. Box 43011 Providence, Rhode Island 02940-3011 LEGAL COUNSEL SKADDEN, ARPS, SLATE, MEAGHER, & FLOM (ILLINOIS) 333 West Wacker Drive Chicago, Illinois 60606 INDEPENDENT AUDITORS DELOITTE & TOUCHE LLP 180 North Stetson Avenue Chicago, Illinois 60601 * "Interested persons" of the Trust, as defined in the Investment Company Act of 1940, as amended. 21 Van Kampen Privacy Notice The Van Kampen companies and investment products* respect your right to privacy. We also know that you expect us to conduct and process your business in an accurate and efficient manner. To do so, we must collect and maintain certain nonpublic personal information about you. This is information we collect from you on applications or other forms, and from the transactions you make with us, our affiliates, or third parties. We may also collect information you provide when using our web site, and text files (a.k.a. "cookies") may be placed on your computer to help us to recognize you and to facilitate transactions you initiate. We do not disclose any nonpublic personal information about you or any of our former customers to anyone, except as permitted by law. For instance, so that we may continue to offer you Van Kampen investment products and services that meet your investing needs, and to effect transactions that you request or authorize, we may disclose the information we collect to companies that perform services on our behalf, such as printers and mailers that assist us in the distribution of investor materials. These companies will use this information only for the services for which we hired them, and are not permitted to use or share this information for any other purpose. To protect your nonpublic personal information internally, we permit access to it only by authorized employees, and maintain physical, electronic and procedural safeguards to guard your nonpublic personal information. * Includes Van Kampen Investments Inc., Van Kampen Investment Advisory Corp., Van Kampen Asset Management Inc., Van Kampen Advisors Inc., Van Kampen Management Inc., Van Kampen Funds Inc., Van Kampen Investor Services Inc., Van Kampen Trust Company, Van Kampen System Inc. and Van Kampen Exchange Corp., as well as the many Van Kampen mutual funds and Van Kampen unit investment trusts. Van Kampen Funds Inc. 1 Parkview Plaza, P.O. Box 5555 Oakbrook Terrace, IL 60181-5555 www.vankampen.com [VAN KAMPEN INVESTMENTS LOGO] Copyright (C)2003 Van Kampen Funds Inc. All rights reserved. VPV SAR 6/03 Member NASD/SIPC. 11165F03-AS-6/03 Item 2. Code of Ethics. Not applicable for semi-annual reports. Item 3. Audit Committee Financial Expert. Not applicable for semi-annual reports. Item 4. Principal Accountant Fees and Services. Not applicable for semi-annual reports. Item 5. Audit Committee of Listed Registrants. Not applicable for semi-annual reports. Item 6. [Reserved.] Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. Not applicable for semi-annual reports. Item 8. [Reserved.] Item 9. The Trust's principal executive officer and principal financial officer have concluded that the Trust's disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Trust in this Form N-CSR 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. There were no significant changes or corrective actions with regard to significant deficiencies or material weaknesses in the Trust's internal controls or in other factors that could significantly affect the Trust's internal controls subsequent to the date of their evaluation. Item 10. Exhibits. (a) Code of Ethics - Not applicable for semi-annual reports. (b) Certifications of Principal Executive Officer and Principal Financial Officer 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 Pennsylvania Value Municipal Income Trust ------------------------------------------------------------------- By: /s/ Ronald E. Robison ---------------------------------------------------------------------------- Name: Ronald E. Robison Title: Principal Executive Officer Date: June 23, 2003 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/ Ronald E. Robison ---------------------------------------------------------------------------- Name: Ronald E. Robison Title: Principal Executive Officer Date: June 23, 2003 By: /s/ John L. Sullivan ---------------------------------------------------------------------------- Name: John Sullivan Title: Principal Financial Officer Date: June 23, 2003 EX-99.CERT 3 c77307exv99wcert.txt CERTIFICATION I, Ronald E. Robison, certify that: 1. I have reviewed this report on Form N-CSR of Van Kampen Pennsylvania Value Municipal Income Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: June 23, 2003 /s/ Ronald E. Robison --------------------------- Principal Executive Officer 1 I, John Sullivan, certify that: 1. I have reviewed this report on Form N-CSR of Van Kampen Pennsylvania Value Municipal Income Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: June 23, 2003 /s/ John L. Sullivan --------------------------- Principal Financial Officer 2 Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 Name of Issuer: Van Kampen Pennsylvania Value Municipal Income Trust In connection with the Report on Form N-CSR (the "Report") of the above-named issuer for the period ended April 30, 2003 that is accompanied by this certification, the undersigned hereby certifies that: 1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Issuer. Date: June 23, 2003 /s/ Ronald E. Robison ---------------------- Ronald E. Robison Principal Executive Officer A signed original of this written statement requires by Section 906 has been provided to Van Kampen Pennsylvania Value Municipal Income Trust and will be retained by Van Kampen Pennsylvania Value Municipal Income Trust and furnished to the Securities and Exchange Commission or its staff upon request. 3 Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 Name of Issuer: Van Kampen Pennsylvania Value Municipal Income Trust In connection with the Report on Form N-CSR (the "Report") of the above-named issuer for the period ended April 30, 2003 that is accompanied by this certification, the undersigned hereby certifies that: 1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Issuer. Date: June 23, 2003 /s/ John L. Sullivan --------------------- John Sullivan Principal Financial Officer A signed original of this written statement requires by Section 906 has been provided to Van Kampen Pennsylvania Value Municipal Income Trust and will be retained by Van Kampen Pennsylvania Value Municipal Income Trust and furnished to the Securities and Exchange Commission or its staff upon request. 4 -----END PRIVACY-ENHANCED MESSAGE-----