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 811-02851
Van Kampen High Yield 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: 8/31
Date of reporting period: 11/30/08
 
 

 

 

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 High Yield Fund
Portfolio of Investments § November 30, 2008 (Unaudited)
                                 
Par                        
Amount                        
(000)     Description   Coupon     Maturity     Value  
 
       
Corporate Bonds 89.6%
                        
       
Aerospace 1.9%
                        
$ 3,665    
Bombardier, Inc. (Canada) (a)
     6.300 %     05/01/14     $ 2,785,400  
  1,810    
Hexcel Corp.
     6.750       02/01/15       1,384,650  
  1,365    
L-3 Communications Corp.
     5.875       01/15/15       1,112,475  
  1,000    
TransDigm, Inc.
     7.750       07/15/14       765,000  
       
 
                      
       
 
                     6,047,525  
       
 
                      
       
Broadcasting 0.4%
                        
  2,880    
LIN Television Corp.
     6.500       05/15/13       1,353,600  
       
 
                      
       
Cable 5.2%
                        
  2,480    
Cablevision Systems Corp., Ser B (b)
    8.333       04/01/09       2,436,600  
  2,544    
CCH I LLC
    11.000       10/01/15       686,880  
  1,460    
CCH II LLC (a)
     10.250       10/01/13       627,800  
  2,640    
Charter Communications Operating LLC (a)
    10.875       09/15/14       1,907,400  
  2,475    
CSC Holdings, Inc. (a)
     8.500       06/15/15       2,010,937  
  1,335    
CSC Holdings, Inc., Ser B
    7.625       04/01/11       1,188,150  
  390    
DirecTV Holdings LLC
    6.375       06/15/15       318,825  
  3,680    
DirecTV Holdings LLC
    7.625       05/15/16       3,155,600  
  3,265    
Echostar DBS Corp.
     6.375       10/01/11       2,783,413  
  550    
Echostar DBS Corp.
     6.625       10/01/14       394,625  
  655    
NTL Cable PLC (United Kingdom)
     8.750       04/15/14       476,513  
  360    
NTL Cable PLC (United Kingdom)
     9.125       08/15/16       255,600  
       
 
                      
       
 
                     16,242,343  
       
 
                      
       
Chemicals 4.2%
                        
  4,295    
Berry Plastics Holding Corp.
     8.875       09/15/14       2,297,825  
  2,235    
Berry Plastics Holding Corp.
     10.250       03/01/16       905,175  
  1,945    
Innophos Holdings, Inc. (a)
     9.500       04/15/12       1,449,025  
  2,445    
Innophos, Inc.
     8.875       08/15/14       2,090,475  

 

 

Van Kampen High Yield Fund
Portfolio of Investments § November 30, 2008 (Unaudited) Continued
                                 
Par                        
Amount                        
(000)     Description   Coupon     Maturity     Value  
 
       
Chemicals (continued)
                        
$ 1,730    
Koppers, Inc.
     9.875 %     10/15/13     $ 1,617,550  
  1,795    
Nalco Co.
     7.750       11/15/11       1,602,037  
  3,185    
Terra Capital, Inc.
     7.000       02/01/17       2,317,088  
  1,570    
Westlake Chemical Corp.
     6.625       01/15/16       1,075,450  
       
 
                      
       
 
                     13,354,625  
       
 
                      
       
Consumer Products 1.3%
                        
  2,840    
Jarden Corp.
     7.500       05/01/17       1,860,200  
  3,215    
Oxford Industrials, Inc.
     8.875       06/01/11       2,298,725  
       
 
                      
       
 
                     4,158,925  
       
 
                      
       
Diversified Media 1.2%
                        
  5,612    
CanWest Media, Inc. (Canada)
    8.000       09/15/12       2,216,680  
  3,587    
Dex Media West/Finance Corp., LLC, Ser B
    9.875       08/15/13       798,107  
  9,115    
Idearc, Inc.
     8.000       11/15/16       797,563  
       
 
                      
       
 
                     3,812,350  
       
 
                      
       
Energy 11.0%
                        
  4,700    
Chaparral Energy, Inc.
     8.500       12/01/15       1,762,500  
  705    
Chaparral Energy, Inc.
     8.875       02/01/17       264,375  
  1,475    
Chesapeake Energy Corp.
     6.375       06/15/15       1,039,875  
  1,650    
Chesapeake Energy Corp.
     6.500       08/15/17       1,134,375  
  2,965    
Chesapeake Energy Corp.
     7.500       09/15/13       2,372,000  
  960    
Cimarex Energy Co.
     7.125       05/01/17       753,600  
  2,220    
Compagnie Generale de Geophysique SA (France)
    7.500       05/15/15       1,454,100  
  2,100    
Forest Oil Corp.
     7.250       06/15/19       1,449,000  
  2,200    
Forest Oil Corp.
     7.750       05/01/14       1,760,000  
  3,855    
Hilcorp Energy/Finance Corp. (a)
     7.750       11/01/15       2,775,600  
  1,925    
Key Energy Services, Inc.
     8.375       12/01/14       1,352,313  
  4,785    
Kinder Morgan Finance Co. (Canada)
    5.700       01/05/16       3,373,425  
  4,250    
Massey Energy Co.
     6.875       12/15/13       2,900,625  

 

 

Van Kampen High Yield Fund
Portfolio of Investments § November 30, 2008 (Unaudited) Continued
                                 
Par                        
Amount                        
(000)     Description   Coupon     Maturity     Value  
 
       
Energy (continued)
                        
$ 3,155    
Newfield Exploration Co.
     6.625 %     09/01/14     $ 2,429,350  
  690    
Newfield Exploration Co.
     7.125       05/15/18       493,350  
  2,635    
OPTI Canada, Inc. (Canada)
    8.250       12/15/14       1,040,825  
  3,450    
Pacific Energy Partners LP
    7.125       06/15/14       3,199,071  
  3,555    
Plains Exploration & Production Co.
     7.625       06/01/18       2,381,850  
  1,285    
Plains Exploration & Production Co.
     7.750       06/15/15       938,050  
  2,820    
SandRidge Energy, Inc. (Senior Unsecured Term Loan) (c)
     8.625       04/01/15       1,804,800  
       
 
                      
       
 
                     34,679,084  
       
 
                      
       
Financial 1.1%
                        
  1,815    
Alfa MTN Invest Ltd. (Cyprus) (a)
     9.250       06/24/13       1,043,625  
  6,845    
GMAC LLC
    6.750       12/01/14       2,226,076  
  166    
Residential Capital LLC (a)
     8.500       05/15/10       48,970  
  2,239    
Residential Capital LLC (a)
     9.625       05/15/15       240,693  
  100    
Two-Rock Pass Through Trust (Bermuda) (a)(b)
    3.230       02/11/49       2,125  
       
 
                      
       
 
                     3,561,489  
       
 
                      
       
Food & Drug 2.5%
                        
  1,275    
Axcan Intermediate Holdings, Inc. (a)
    12.750       03/01/16       1,064,625  
  3,106    
CA FM Lease Trust (a)
     8.500       07/15/17       3,627,696  
  2,345    
SUPERVALU, Inc.
     7.500       05/15/12       2,040,150  
  1,305    
SUPERVALU, Inc.
     7.500       11/15/14       1,024,425  
       
 
                      
       
 
                     7,756,896  
       
 
                      

 

 

Van Kampen High Yield Fund
Portfolio of Investments § November 30, 2008 (Unaudited) Continued
                                 
Par                        
Amount                        
(000)     Description   Coupon     Maturity     Value  
 
       
Food & Tobacco 2.2%
                        
$ 2,320    
Constellation Brands, Inc.
     7.250 %     05/15/17     $ 1,937,200  
  3,000    
Michael Foods, Inc.
     8.000       11/15/13       2,565,000  
  3,795    
Pilgrim’s Pride Corp. (d)
     7.625       05/01/15       531,300  
  2,930    
Smithfield Foods, Inc.
     7.000       08/01/11       1,772,650  
       
 
                      
       
 
                     6,806,150  
       
 
                      
       
Forest Products 4.2%
                        
  1,065    
Crown Americas LLC
    7.625       11/15/13       990,450  
  5,080    
Georgia-Pacific Corp. (a)
     7.125       01/15/17       3,759,200  
  1,345    
Graham Packaging Co., Inc.
     8.500       10/15/12       988,575  
  1,415    
Graham Packaging Co., Inc.
     9.875       10/15/14       898,525  
  3,255    
Graphic Packaging International, Inc.
     9.500       08/15/13       2,262,225  
  3,325    
Owens-Illinois, Inc.
     7.500       05/15/10       3,208,625  
  1,085    
P.H. Glatfelter Co.
     7.125       05/01/16       949,375  
       
 
                      
       
 
                     13,056,975  
       
 
                      
       
Gaming & Leisure 4.9%
                        
  9,030    
Harrah’s Operating Co., Inc.
     5.375       12/15/13       1,851,150  
  3,595    
Host Marriott LP
    6.375       03/15/15       2,435,613  
  2,685    
Host Marriott LP, Ser J
    7.125       11/01/13       1,966,762  
  3,785    
Las Vegas Sands Corp.
     6.375       02/15/15       2,138,525  
  5,705    
MGM Mirage, Inc.
     6.000       10/01/09       4,649,575  
  2,875    
MGM Mirage, Inc. (a)
     13.000       11/15/13       2,415,000  
       
 
                      
       
 
                     15,456,625  
       
 
                      
       
Health Care 12.3%
                        
  1,675    
Biomet, Inc.
     11.625       10/15/17       1,264,625  
  2,855    
Community Health Systems, Inc.
     8.875       07/15/15       2,305,412  
  1,140    
DaVita, Inc.
     6.625       03/15/13       1,014,600  
  2,550    
Fisher Scientific International, Inc.
     6.125       07/01/15       2,183,073  

 

 

Van Kampen High Yield Fund
Portfolio of Investments § November 30, 2008 (Unaudited) Continued
                                 
Par                        
Amount                        
(000)     Description   Coupon     Maturity     Value  
 
       
Health Care (continued)
                        
$ 7,055    
Fresenius Medical Care Capital Trust IV
    7.875 %     06/15/11     $ 6,455,325  
  2,545    
HCA, Inc.
     5.750       03/15/14       1,476,100  
  7,925    
HCA, Inc.
     6.250       02/15/13       5,111,625  
  2,523    
HCA, Inc.
     9.125       11/15/14       2,056,245  
  2,960    
Healthsouth Corp.
     10.750       06/15/16       2,634,400  
  680    
Invacare Corp.
     9.750       02/15/15       610,300  
  3,370    
National Mentor Holdings, Inc.
     11.250       07/01/14       2,813,950  
  3,760    
Omnicare, Inc.
     6.750       12/15/13       3,158,400  
  750    
Omnicare, Inc.
     6.875       12/15/15       611,250  
  2,215    
Sun Healthcare Group, Inc.
     9.125       04/15/15       1,849,525  
  4,120    
Tenet Healthcare Corp.
     7.375       02/01/13       2,863,400  
  2,699    
Warner Chilcott Corp.
     8.750       02/01/15       2,395,363  
       
 
                      
       
 
                     38,803,593  
       
 
                      
       
Housing 1.9%
                        
  1,435    
Interface, Inc.
     10.375       02/01/10       1,391,950  
  3,365    
Interface, Inc., Ser B
    9.500       02/01/14       2,708,825  
  5,130    
Nortek, Inc.
     8.500       09/01/14       1,590,300  
  445    
Pulte Homes, Inc.
     6.375       05/15/33       202,475  
       
 
                      
       
 
                     5,893,550  
       
 
                      
       
Information Technology 2.8%
                        
  2,445    
Freescale Semiconductor, Inc.
     8.875       12/15/14       843,525  
  525    
Iron Mountain, Inc.
     6.625       01/01/16       412,125  
  2,050    
Iron Mountain, Inc.
     7.750       01/15/15       1,732,250  
  1,270    
Iron Mountain, Inc.
     8.625       04/01/13       1,152,525  
  1,515    
NXP BV / NXP Funding LLC (Netherlands)
    7.875       10/15/14       462,075  
  3,540    
Sungard Data Systems, Inc.
     9.125       08/15/13       2,761,200  
  2,275    
Vangent, Inc.
     9.625       02/15/15       1,330,875  
       
 
                      
       
 
                     8,694,575  
       
 
                      

 

 

Van Kampen High Yield Fund
Portfolio of Investments § November 30, 2008 (Unaudited) Continued
                                 
Par                        
Amount                        
(000)     Description   Coupon     Maturity     Value  
 
       
Manufacturing   1.9%
                        
$ 1,295    
Baldor Electric Co.
     8.625 %     02/15/17     $  958,300  
  3,463    
JohnsonDiversey, Inc., Ser B   
     9.625       05/15/12        2,848,318  
  3,055    
RBS Global, Inc. & Rexnord Corp. 
     9.500       08/01/14           2,153,775  
       
 
                      
       
 
                      5,960,393  
       
 
                      
       
Metals   2.0%
                        
  850    
Evraz Group SA (Luxembourg) (a)
     9.500       04/24/18            369,750  
  1,340    
Foundation PA Coal Co.  
     7.250       08/01/14        1,021,750  
  2,175    
Freeport McMoRan Cooper & Gold, Inc.
     8.375       04/01/17        1,546,303  
  5,690    
Novelis, Inc. (Canada) 
     7.250       02/15/15        3,328,650  
       
 
                      
       
 
                      6,266,453  
       
 
                      
       
Retail   2.2%
                        
  3,350    
Brown Shoe Co., Inc.  
     8.750       05/01/12        2,529,250  
  4,020    
Phillips-Van Heusen Corp
     7.250       02/15/11        3,306,450  
  3,730    
Rite Aid Corp
     8.625       03/01/15        1,091,025  
       
 
                      
       
 
                     6,926,725  
       
 
                      
       
Services   1.5%
                        
  1,135    
Allied Waste North America, Inc. 
     7.250       03/15/15           1,007,312  
  1,800    
Allied Waste North America, Inc., Ser B   
     5.750       02/15/11        1,674,000  
  1,410    
Aramark Services, Inc.  
     8.500       02/01/15        1,177,350  
  1,570    
Expedia, Inc. (a)
     8.500       07/01/16        965,550  
       
 
                      
       
 
                      4,824,212  
       
 
                      
       
Telecommunications   6.7%
                        
  1,535    
Citizens Communications Co.
     6.250       01/15/13        1,208,812  
  2,640    
Citizens Communications Co.  
     7.125       03/15/19        1,537,800  
  6,030    
Exodus Communications, Inc. (d)(e)(f)  
     11.250       07/01/08         0  
EUR 4,000    
Exodus Communications, Inc. (d)(e)(f)
     11.375       07/15/08         0  
  191    
Exodus Communications, Inc. (d)(e)(f)
     11.625       07/15/10         0  

 

 

Van Kampen High Yield Fund
Portfolio of Investments § November 30, 2008 (Unaudited) Continued
                                 
Par                        
Amount                        
(000)     Description   Coupon     Maturity     Value  
 
       
Telecommunications (continued)
                        
$ 8,250    
GST Network Funding, Inc. (d)(e)(f)
    10.500 %     05/01/08     $ 825  
  6,480    
Intelsat Corp. (a)
     9.250       06/15/16       5,443,200  
  740    
Nordic Telephone Co., Holdings (Denmark) (a)
    8.875       05/01/16       540,200  
  2,210    
Nortel Networks Ltd. (Canada) (a)
     10.750       07/15/16       651,950  
  4,000    
Park N View, Inc., Ser B (d)(e)(f)
     13.000       05/15/08       0  
  2,179    
Qwest Communications International, Inc. (b)
    5.648       02/15/09       2,168,105  
  4,605    
Sprint Capital Corp.
     6.900       05/01/19       2,628,843  
  4,325    
Sprint Nextel Corp.
     6.000       12/01/16       2,403,614  
  3,340    
Wind Acquisition Finance SA (Luxembourg) (a)
    10.750       12/01/15       2,755,500  
  1,410    
Windstream Corp.
     8.125       08/01/13       1,170,300  
  2,505    
XM Satellite Radio Holdings, Inc. (a)
    13.000       08/01/13       651,300  
       
 
                      
       
 
                     21,160,449  
       
 
                      
       
Transportation 4.3%
                        
  2,585    
ArvinMeritor, Inc.
     8.750       03/01/12       1,279,575  
  8,460    
Ford Motor Credit Co.
     7.000       10/01/13       3,562,929  
  7,670    
Ford Motor Credit Co.
     7.250       10/25/11       3,394,251  
  7,420    
General Motors Acceptance Corp.
     6.875       09/15/11       2,852,582  
  2,720    
General Motors Corp.
     8.375       07/15/33       612,000  
  2,100    
KAR Holdings, Inc.
     8.750       05/01/14       903,000  
  965    
Penske Automotive Group, Inc.
     7.750       12/15/16       357,050  
  1,790    
Sonic Automotive, Inc., Ser B
    8.625       08/15/13       653,350  
       
 
                      
       
 
                     13,614,737  
       
 
                      
       
Utility 11.8%
                        
  925    
AES Corp.
     7.750       03/01/14       682,187  
  5,000    
AES Corp. (a)
     8.000       06/01/20       3,225,000  
  2,498    
AES Corp. (a)
     8.750       05/15/13       2,210,730  

 

 

Van Kampen High Yield Fund
Portfolio of Investments § November 30, 2008 (Unaudited) Continued
                                 
Par                        
Amount                        
(000)     Description   Coupon     Maturity     Value  
 
       
Utility (continued)
                        
$ 3,150    
Dynegy Holdings, Inc.
     7.750 %     06/01/19     $ 2,110,500  
  3,500    
Edison Mission Energy
    7.750       06/15/16       2,756,250  
  3,380    
Intergen NV (Netherlands) (a)
     9.000       06/30/17       2,720,900  
  1,355    
IPALCO Enterprises, Inc.
     8.625       11/14/11       1,165,300  
  3,360    
Mirant Americas Generation LLC
     8.500       10/01/21       2,368,800  
  3,000    
NRG Energy, Inc.
     7.375       01/15/17       2,430,000  
  6,288    
Ormat Funding Corp.
     8.250       12/30/20       4,936,247  
  2,945    
Reliant Energy, Inc.
     7.875       06/15/17       2,157,213  
  190    
Sierra Pacific Power Co., Ser H
     6.250       04/15/12       189,223  
  9,780    
Texas Competitive Electric Holdings Co., LLC (a)
    10.250       11/01/15       6,308,100  
  5,245    
Williams Cos., Inc.
     7.875       09/01/21       3,993,338  
       
 
                      
       
 
                     37,253,788  
       
 
                      
       
Wireless Communications 2.1%
                        
  3,090    
American Tower Corp.
     7.125       10/15/12       2,912,325  
  3,085    
American Tower Corp.
     7.500       05/01/12       2,899,900  
  1,960    
Nextel Communications, Inc., Ser E
    6.875       10/31/13       823,631  
       
 
                      
       
 
                     6,635,856  
       
 
                      
       
Total Corporate Bonds 89.6%
                    282,320,918  
       
 
                      
         
Description        
Convertible Preferred Stocks 0.0%
        
Federal National Mortgage Association (8,275 Preferred Shares)
    15,226  
 
      
 
        
Equities 0.0%
        
DecisionOne Corp. (19,895 Common Shares) (f)(g)
     0  
HF Holdings, Inc. (36,820 Common Stock Warrants, expiring 09/27/09) (f)(g)
     0  

 

 

Van Kampen High Yield Fund
Portfolio of Investments § November 30, 2008 (Unaudited) Continued
         
Description   Value  
 
Equities (continued)
        
Hosiery Corp. of America, Inc., Class A (1,000 Common Shares) (f)(g)
   $ 0  
Jazztel PLC (5,000 Common Stock Warrants, expiring 07/15/10) (United Kingdom) (a)(f)(g)
     0  
OpTel, Inc. (3,275 Common Shares) (a)(f)(g)
     0  
Park N View, Inc. (4,000 Common Stock Warrants, expiring 05/15/18) (a) (f)(g)
     0  
Reunion Industries, Inc. (107,947 Common Stock Warrants, expiring 12/02/08) (f)(g)
     0  
Ventelo, Inc. (73,021 Common Shares) (United Kingdom) (a)(f)(g)
     0  
VS Holdings, Inc. (946,962 Common Shares) (f)(g)
     0  
 
      
Total Equities 0.0%
    0  
 
      
 
        
Total Long-Term Investments 89.6%
        
(Cost $452,499,757)
     282,336,144  
 
      
 
        
Short-Term Investments 8.4%
        
Repurchase Agreements 5.8%
        
Banc of America Securities ($3,812,938 par collateralized by U.S. Government obligations in a pooled cash account, interest rate of 0.30%, dated 11/28/08, to be sold on 12/01/08 at $3,813,033)
    3,812,938  
Citigroup Global Markets, Inc. ($7,625,875 par collateralized by U.S. Government obligations in a pooled cash account, interest rate of 0.25%, dated 11/28/08, to be sold on 12/01/08 at $7,626,034)
    7,625,875  
JPMorgan Chase & Co. ($2,287,763 par collateralized by U.S. Government obligations in a pooled cash account, interest rate of 0.20%, dated 11/28/08, to be sold on 12/01/08 at $2,287,801)
    2,287,763  
State Street Bank & Trust Co. ($4,569,424 par collateralized by U.S. Government obligations in a pooled cash account, interest rate of 0.03%, dated 11/28/08, to be sold on 12/01/08 at $4,569,436)
    4,569,424  
 
      
Total Repurchase Agreements 5.8%
    18,296,000  
 
      

 

 

Van Kampen High Yield Fund
Portfolio of Investments § November 30, 2008 (Unaudited) Continued
         
Description   Value  
 
United States Government Agency Obligations 2.6%
        
United States Treasury Bill ($8,080,000 par, yielding 0.714%, 01/15/09 maturity) (h)
  $ 8,072,902  
 
      
 
        
Total Short-Term Investments 8.4%
        
(Cost $26,368,902)
     26,368,902  
 
      
 
        
Total Investments 98.0%
        
(Cost $478,868,659)
     308,705,046  
 
Other Assets in Excess of Liabilities 2.0%
     6,350,514  
 
      
 
Net Assets 100.0%
   $ 315,055,560  
 
      
Percentages are calculated as a percentage of net assets.
 
(a)   144A-Private Placement security which is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. This security may only be resold in transactions exempt from registration which are normally those transactions with qualified institutional buyers.
 
(b)   Floating Rate Coupon
 
(c)   Payment-in-kind security
 
(d)   Non-income producing as security is in default.
 
(e)   This borrower has filed for protection in federal bankruptcy court.
 
(f)   Market value is determined in accordance with procedures established in good faith by the Board of Directors.
 
(g)   Non-income producing security
 
(h)   All or a portion of this security has been physically segregated in connection with open futures contracts and swap contracts.
Currency Abbreviations:
EUR — Euro
Forward foreign currency contracts outstanding as of November 30, 2008:
                         
                    Unrealized  
                    Appreciation/  
    In Exchange for     Current Value     Depreciation  
Long Contracts:
                        
Euro Currency
                        
6,430,000 expiring 02/03/09
   US $   $ 8,165,390     $ 53,945  

 

 

Van Kampen High Yield Fund
Portfolio of Investments § November 30, 2008 (Unaudited) Continued
                         
Short Contracts:
                        
Euro Currency
                        
6,430,000 expiring 02/03/09
   US $   $ 8,165,390     $ 145,385  
 
                      
Total Forward Foreign Currency Contracts
                   $ 199,330  
 
                      
The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“FAS 157”), effective September 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 November 30, 2008 in valuing the Fund’s investments carried at value:
                 
    Investments in   Other Financial
Valuation Inputs   Securities   Instruments*
Level 1 - Quoted Prices
   $ 15,226     $ -0-  
Level 2 - Other Significant Observable Inputs
     308,688,995       199,330  
Level 3 - Significant Unobservable Inputs
     825       -0-  
     
Total
   $ 308,705,046     $ 199,330  
     
 
* Other financial instruments include futures, forwards and swap contracts.
Following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:

 

 

Van Kampen High Yield Fund
Portfolio of Investments § November 30, 2008 (Unaudited) Continued
         
    Investments in
Securities		  
Balance as of 8/31/08
   $ 120,873  
Accrued Discounts/Premiums
     -0-  
Realized Gain/Loss
     (3,214,880 ) 
Change in Unrealized Appreciation/Depreciation
     3,207,956  
Net Purchases/Sales
     (113,124 ) 
Net Transfers in and/or out of Level 3
     -0-  
 
      
Balance as of 11/30/08
   $ 825  
Net Change in Unrealized
        
Appreciation/Depreciation from Investments
        
still held as of 11/30/08
     3,207,956  
Security Valuation Fixed income investments and preferred stocks are stated at value using market quotations or indications of value obtained from an independent pricing service. Investments in securities listed on a securities exchange are valued at their last sale price or the latest bid price (in the case of a foreign securities exchange) as of the close of such securities exchange. Equity securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Unlisted securities and listed securities for which the last sales 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. Forward foreign currency contracts are valued using quoted foreign exchange rates. Swaps are valued using market quotations obtained from brokers. Futures contracts are valued at the settlement price established each day on the exchange on which they are traded. 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 High Yield Fund
By: /s/ Edward C. Wood III          
Name: Edward C. Wood III
Title: Principal Executive Officer
Date: January 20, 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: /s/ Edward C. Wood III          
Name: Edward C. Wood III
Title: Principal Executive Officer
Date: January 20, 2009
By: /s/ Stuart N. Schuldt          
Name: Stuart N. Schuldt
Title: Principal Financial Officer
Date: January 20, 2009