Free Submission Public Relations & NewsPR-inside.com
 
DeutschEnglish

Get the latest news
with our RSS feed
rss feed
Add to My Yahoo!
More information
Business

Van Kampen Trust for Insured Municipals Changes Policy on Insurers of Municipal Securities


Print article Print article
Refer this article Refer to a friend
© Business Wire 2008
2008-08-21 23:07:02 -

- Van Kampen Trust for Insured Municipals (NYSE: VIM) (the "Trust") has adopted a change in its policy regarding the credit rating on insurers of municipal securities in which the Trust invests. The Trust's investment objective is to provide investors with a high level of current income exempt from federal income tax, consistent with preservation of capital. The Trust seeks

to achieve its investment objective by investing primarily in insured municipal securities. The Trust is not changing its investment objective or its investment policy of investing in insured municipal securities.

In connection with the unusual recent instability in the marketplace, many of the insurers of municipal securities have experienced ratings downgrades by the ratings agencies that rate such insurers' claims paying ability. This affects many mutual funds that invest in insured municipal securities because many such funds (including the Trust) currently have policies that require such funds to invest substantially all of their assets in municipal securities that are insured at the time of investment by an insurer whose claims paying ability is rated AAA. As a result of the recent downgrades, the Board of Trustees of the Trust has approved a policy change for the Trust to require the Trust to invest at least 80% of its net assets in municipal securities that are insured at the time of purchase by insurers whose claims paying ability is rated A or better by at least one nationally recognized statistical rating organization. The changed policy reflects the current state of the marketplace and reflects that the claims-paying ability of many current insurers may not be upgraded again to AAA in the near future.

Management of the Trust believes that the changed policy allows the Trust to continue to purchase higher quality insured municipal securities, while acknowledging the market price impact and moderately increased credit risk related to these downgrades among insurers. While the market risk and the credit risk of the Trust investing in insured municipal securities generally should be lower than the risks of a fund investing in similar municipal securities that are uninsured, insurance does not eliminate the market risk or credit risk of the securities in the Trust's portfolio. A downgrade of an insurer would generally subject the Trust to potential market value declines and increased credit risk on the municipal securities insured by such insurer.

Van Kampen Asset Management, the Trust's investment adviser, is a wholly owned subsidiary of Van Kampen Investments Inc. ("Van Kampen"). Van Kampen is one of the nation's largest investment management companies, with approximately $138 billion in assets under management or supervision, including approximately $30 billion in assets branded Van Kampen but advised by an affiliate of Van Kampen's, as of May 31, 2008. With roots in money management dating back to 1927, Van Kampen has helped nearly four generations of investors achieve their financial goals. For more information, visit Van Kampen's website at www.vankampen.com.

Copyright (C)2008 Van Kampen Funds Inc. All Rights Reserved. Member FINRA/SIPC.

Van Kampen Funds Inc.
1-800-341-2929


Disclaimer: (c) 2007 Business Wire. All of the news releases contained herein are protected by copyright and other applicable laws, treaties and conventions. Information contained in the releases is furnished by Business Wire's members, who warrant that they are solely responsible for the content, accuracy and originality of the information contained therein. All reproduction, other than for an individual user's personal reference, is prohibited without prior written permission.


Terms & Conditions | About us | Contact PR-inside.com