Invesco Bond Fund — Net Asset Value 2003

Aug 29, 2003

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 811-02090 Van Kampen Bond Fund - -------------------------------------------------------------------------------- (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: 06/30/03 ----------- Date of reporting period: 06/30/03 ----------- Item 1. Report to Shareholders Welcome, Shareholder In this update, you'll learn about how your fund performed during the reporting period. The portfolio management team will provide an overview of the market climate, and discuss some of the factors that helped or hindered performance during the reporting period. In addition, this report includes the fund's financial statements and a list of fund investments, as well as other information. Market forecasts provided in this report may not necessarily come to pass. There is no assurance that the fund will achieve its investment objective. The fund is subject to market risk, which is the possibility that the market values of securities owned by the fund will decline and, therefore, the value of the fund shares may be less than what you paid for them. Accordingly, you can lose money investing in this fund. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Performance Summary NET ASSET VALUE AND COMMON SHARE MARKET PRICE (based upon quarter-end values--June 1993 through June 2003) (LINE GRAPH)

The solid line above represents the fund's net asset value (NAV), which indicates overall changes in value among the fund's underlying securities. The fund'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 fund at a given time. Common share market price is influenced by a range of factors, including supply and demand and market conditions.

Past performance is no guarantee of future results. Investment return, common share market price and net asset value will fluctuate and fund 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. Total return assumes an investment at the common share market price at the beginning of the period, reinvestment of all distributions for the period in accordance with the fund's dividend reinvestment plan, and sale of all shares at the closing common share market price at the end of the period. Distribution rate is as a percent of closing common share market price, and represents the annualized distributions of the fund at the end of the period and not the earnings of the fund. The Lehman Brothers BBB Corporate Bond Index is generally representative of corporate bonds. The index does not include any expenses, fees or sales charges, which would lower performance. The index is unmanaged and should not be considered an investment. 1 Fund Report FOR THE 12-MONTH PERIOD ENDED JUNE 30, 2003 Van Kampen Bond Fund is managed by the Adviser's Taxable Fixed Income team. Members of the team include David S. Horowitz, Executive Director, and Gordon W. Loery, Executive Director.(1) The following discussion reflects their views on the fund's performance. Q. BEFORE YOU DISCUSS HOW THE FUND PERFORMED, PLEASE DESCRIBE THE OVERALL MARKET ENVIRONMENT. A. As in the broader fixed-income markets, the corporate-bond sector was highly volatile during the reporting period. Geopolitical concerns around the war in Iraq and terrorism contributed to volatility, though the tension in the market was somewhat eased by the end of the initial combat phase of the war. Ongoing concerns about the strength of the U.S. economy caused the Federal Reserve Bank (the Fed) to cut interest rates several times over the period, taking Treasury yields to 45-year lows. The corporate sector was among the best-performing areas of the bond market from October through the end of the period, with lower-quality securities performing especially strongly in the 2003 rally. Q. HOW DID THE FUND PERFORM DURING THE REPORTING PERIOD? A. -- The fund returned 12.67 percent for the 12 months ended June 30, 2003, based on common share market price. -- By comparison, the fund's benchmark, the Lehman Brothers BBB Corporate Bond Index, returned 18.33 percent. -- The fund's quarterly dividend of $0.290 translated to a distribution rate of 5.93 percent, based on the fund's common share market price as of June 30, 2003. See Performance Summary for additional information and index definitions. Q. WHAT FACTORS HINDERED PERFORMANCE? A. -- In light of recent business difficulties in the technology and utilities sectors, we chose to underweight these sectors relative to the benchmark. During the rally, which rewarded lower-quality companies, these were two of the best-performing sectors. Therefore, the fund did not benefit as it might have, had it held a larger weighting. As of the end of the period, however, our outlook and (1)Team members may change at any time without notice. 2 therefore, the fund's positions in these sectors, remain basically unchanged. -- The fund's lower interest-rate sensitivity caused it to lag when interest rates declined. Q. WHAT HELPED PERFORMANCE DURING THE REPORTING PERIOD? A. -- We shifted assets from Treasuries into corporate securities, giving the portfolio greater exposure to the strong performance of corporate bonds. -- The portfolio's overweight positions (versus the benchmark index) in the financial, media and transportation sectors achieved solid, double-digit performance during the reporting period. -- Our analysis indicated that the consumer-nondurable and food/ tobacco sectors were fully priced, which led us to significantly underweight the sectors versus the benchmark. This strategy added to performance as these sectors underperformed for the period. Q. PLEASE WALK US THROUGH HOW YOU POSITIONED THE FUND, HIGHLIGHTING KEY THEMES. A. Our expectations for the economy centered on an anticipated return to positive growth in the relatively near term. This led us to keep the portfolio's duration shorter than that of its benchmark in order to avoid unwanted volatility. In a similar vein, we positioned assets in lower investment-grade paper--paper believed to offer more value and wider yield spreads in today's market. We also attempted to keep the portfolio well-diversified across sectors and individual names to give it broader exposure to opportunities as well as to help minimize overall risk.

Subject to change daily. All percentages are as a percentage of long-term investments. Provided for informational purposes only and should not be deemed as a recommendation to buy securities in the sectors shown above. Securities are classified by sectors that represent broad groupings of related industries. Rating allocations based upon ratings as issued by Standard and Poor's and Moody's, respectively. Morgan Stanley is a full-service securities firm engaged in securities trading and brokerage activities, investment banking, research and analysis, financing and financial advisory services. 3 Q. NOW THAT YOU'VE PROVIDED AN OVERVIEW OF THE FUND, DO YOU HAVE ANY CLOSING THOUGHTS FOR THE SHAREHOLDERS? A. We believe there are several factors that indicate rising interest rates are more likely than falling rates over the near term. First, the economy's underlying strength appears to remain fundamentally sound. Second, Treasury yields ended the period at multi-decade lows that appear to be unsustainable. Lastly, both fiscal and monetary policy remain geared to spurring near-term economic growth. That said, it is still difficult to predict with certainty where interest rates are headed. We will continue to monitor the economy and markets closely for potential opportunities. PROXY VOTING POLICIES AND PROCEDURES A description of the fund's policies and procedures with respect to the voting of proxies relating to the Fund's portfolio securities is available without charge, upon request, by Calling 1-800-847-2424. This information is also available on the Securities and Exchange Commission's website at http://www.sec.gov. 4 BY THE NUMBERS YOUR FUND'S INVESTMENTS June 30, 2003 THE FOLLOWING PAGES DETAIL YOUR FUND'S PORTFOLIO OF INVESTMENTS AT THE END OF THE REPORTING PERIOD.

See Notes to Financial Statements 5 YOUR FUND'S INVESTMENTS June 30, 2003

6 See Notes to Financial Statements YOUR FUND'S INVESTMENTS June 30, 2003

See Notes to Financial Statements 7 YOUR FUND'S INVESTMENTS June 30, 2003

8 See Notes to Financial Statements YOUR FUND'S INVESTMENTS June 30, 2003

See Notes to Financial Statements 9 YOUR FUND'S INVESTMENTS June 30, 2003

10 See Notes to Financial Statements YOUR FUND'S INVESTMENTS June 30, 2003

See Notes to Financial Statements 11 YOUR FUND'S INVESTMENTS June 30, 2003

12 See Notes to Financial Statements YOUR FUND'S INVESTMENTS June 30, 2003

See Notes to Financial Statements 13 YOUR FUND'S INVESTMENTS June 30, 2003 * Zero coupon bond (a) Asset segregated as collateral for open futures transactions. (b) 144A securities are those which are exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may only be resold in transactions exempt from registration which are normally those transactions with qualified institutional buyers. (c) Non-income producing security. LYON--Liquid Yield Option Note 14 See Notes to Financial Statements FINANCIAL STATEMENTS Statement of Assets and Liabilities June 30, 2003

See Notes to Financial Statements 15 Statement of Operations For the Year Ended June 30, 2003

16 See Notes to Financial Statements Statements of Changes in Net Assets

See Notes to Financial Statements 17 Financial Highlights THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE SHARE OF THE FUND OUTSTANDING THROUGHOUT THE PERIODS INDICATED.

(a) As required, effective July 1, 2001, the Fund has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium on fixed income securities. The effect of this change for the year ended June 30, 2002 was to decrease net investment income per share by $.04, increase net realized and unrealized gains and losses per share by $.04 and decrease the ratio of net investment income to average net assets by .24%. Per share, ratios and supplemental data for periods prior to June 30, 2002 have not been restated to reflect this change in presentation. (b) Total return based on common share market price 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 Fund's dividend reinvestment plan, and sale of all shares at the closing common share price at the end of the period indicated. (c) On January 3, 1995, the Fund paid off its outstanding convertible extendible note. 18

See Notes to Financial Statements 19 NOTES TO FINANCIAL STATEMENTS June 30, 2003 1. SIGNIFICANT ACCOUNTING POLICIES Van Kampen Bond Fund (the "Fund") is registered as a diversified, closed-end management investment company under the Investment Company Act of 1940, as amended. The Fund's investment objective is to seek interest income while conserving capital through investing in a diversified portfolio consisting primarily of high-quality debt securities. The following is a summary of significant accounting policies consistently followed by the Fund 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 Fixed income investments 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 sale price as of the close of such securities exchange. Listed securities and unlisted securities for which the last sales price is not available are valued at the mean of the bid and asked prices. For those securities where quotations or prices are not available as noted above, valuations are determined in accordance with procedures established in good faith by the Board of Trustees. 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. B. SECURITY TRANSACTIONS Security transactions are recorded on a trade date basis. Realized gains and losses are determined on an identified cost basis. The Fund 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 Fund 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. At June 30, 2003, there were no when-issued or delayed delivery purchase commitments. The Fund may invest in repurchase agreements, which are short-term investments in which the Fund acquires ownership of a debt security and the seller agrees to repurchase the security at a future time and specified price. The Fund may invest independently in repurchase agreements, or transfer uninvested cash balances into a pooled cash account along with other investment companies advised by Van Kampen Asset Management Inc. (the "Adviser") or its affiliates, the daily aggregate of which is invested in repurchase agreements. Repurchase agreements are fully collateralized by the underlying debt security. The Fund will make payment for such securities only upon physical delivery or evidence of book entry transfer to the account of the custodian bank. The seller is required to maintain the value of the underlying security at not less than the repurchase proceeds due the Fund. 20 NOTES TO FINANCIAL STATEMENTS June 30, 2003 C. INVESTMENT INCOME Interest income is recorded on an accrual basis and dividend income is recorded on the ex-dividend date. Premiums are amortized and discounts are accreted over the expected life of each applicable security. D. FEDERAL INCOME TAXES It is the Fund'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 Fund 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 capital gains. At June 30, 2003, the Fund had an accumulated capital loss carryforward for tax purposes of $11,597,056, which will expire between June 30, 2009 and June 30, 2011. At June 30, 2003, the cost and related gross unrealized appreciation and depreciation are as follows:

E. DISTRIBUTION OF INCOME AND GAINS The Fund declares and pays quarterly dividends from net investment income. Net realized gains, if any, are distributed annually. Distributions from net realized gains for book purposes may include short-term capital gains and gains on futures transactions. All short-term capital gains and a portion of futures gains are included in ordinary income for tax purposes. The tax character of distributions paid during the years ended June 30, 2003 and 2002 was as follows:

Due to inherent differences in the recognition of income, expenses and realized gain/ losses under accounting principles generally accepted in the United States of America and federal income tax purposes, permanent differences between book and tax basis reporting have been identified and appropriately reclassified on the Statement of Assets and Liabilities. Permanent book and tax differences relating to expenses which are not deductible for tax purposes totaling $5,773 were reclassified from accumulated undistributed net investment income to capital and $598 relating to the recognition of net realized losses on paydowns of 21 NOTES TO FINANCIAL STATEMENTS June 30, 2003 mortgage pool obligations was reclassified from accumulated undistributed net investment income to accumulated net realized loss. Additionally, a permanent difference relating to book to tax amortization differences totaling $1,539,470 was reclassified from accumulated undistributed net investment income to accumulated net realized loss. As of June 30, 2003, the component of distributable earnings on a tax basis was as follows:

Net realized gains or losses may differ for financial reporting and tax purposes primarily as a result of the deferral of losses relating to wash sale transactions, gains or losses recognized for tax purposes on open future transactions on June 30, 2003 and post-October losses which may not be recognized for tax purposes until the first day of the following fiscal year. F. EXPENSE REDUCTIONS During the year ended June 30, 2003, the Fund's custody fee was reduced by $69 as a result of credits earned on cash balances. 2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES Under the terms of the Fund's Investment Advisory Agreement, the Adviser will provide investment advice and facilities to the Fund for an annual fee payable monthly as follows:

For the year ended June 30, 2003, the Fund recognized expenses of approximately $12,900 representing legal services provided by Skadden, Arps, Slate, Meagher & Flom (Illinois), counsel to the Fund, of which a trustee of the Fund is an affiliated person. Under an Accounting Services agreement, the Adviser provides accounting services to the Fund. The Adviser allocates cost of such services to each fund. For the year ended June 30, 2003, the Fund recognized expenses of approximately $19,500 representing Van Kampen Investments Inc.'s or its affiliates' (collectively "Van Kampen") cost of providing accounting services to the Fund, which are reported as part of "Other" expenses on the Statement of Operations. Certain officers and trustees of the Fund are also officers and directors of Van Kampen. The Fund does not compensate its officers or trustees who are officers of Van Kampen. The Fund 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 22 NOTES TO FINANCIAL STATEMENTS June 30, 2003 years of service to the Fund. The maximum annual benefit per trustee under the plan is $2,500. 3. INVESTMENT TRANSACTIONS During the period, the cost of purchases and proceeds from sales of investments, excluding short-term investments, were $118,102,231 and $117,587,531, respectively. 4. 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 Fund has a variety of reasons to use derivative instruments, such as to attempt to protect the Fund against possible changes in the market value of its portfolio or to generate potential gain. All of the Fund's portfolio holdings, including derivative instruments, are marked to market each day with the change in value reflected in the unrealized appreciation/ depreciation. Upon disposition, a realized gain or loss is recognized accordingly, except when taking delivery of a security underlying a futures contract. In this instance, the recognition of gain or loss is postponed until the disposal of the security underlying the futures contract. Risks may arise as a result of the potential inability of the counterparties to meet the terms of their contracts. During the period, the Fund invested in futures contracts, a type of derivative. A futures contract is an agreement involving the delivery of a particular asset on a specified future date at an agreed upon price. The Fund generally invests in exchange traded futures on U.S. Treasury Bonds and Notes and typically closes the contract prior to the delivery date. Upon entering into futures contracts, the Fund maintains an amount of cash or liquid securities with a value equal to a percentage of the contract amount with either a futures commission merchant pursuant to rules and regulations promulgated under the 1940 Act, as amended, or with its custodian in an account in the broker's name. This amount is known as initial margin. During the period the futures contract is open, payments are received from or made to the broker based upon changes in the value of the contract (the variation margin). The risk of loss associated with a futures contract is in excess of the variation margin reflected on the Statement of Assets and Liabilities. Transactions in futures contracts for the year ended June 30, 2003, were as follows:

23 NOTES TO FINANCIAL STATEMENTS June 30, 2003 The futures contracts outstanding as of June 30, 2003 and the descriptions and unrealized appreciation/depreciation are as follows:

24 REPORT OF INDEPENDENT AUDITORS To the Board of Trustees and Shareholders of Van Kampen Bond Fund: We have audited the accompanying statement of assets and liabilities of Van Kampen Bond Fund (the "Fund"), including the portfolio of investments, as of June 30, 2003, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The Fund's financial highlights for the periods ended prior to June 30, 2000, were audited by other auditors whose report, dated July 23, 1999, expressed an unqualified opinion on those financial highlights. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2003, by correspondence with the Fund's custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Van Kampen Bond Fund as of June 30, 2003, the results of its operations for the year then ended, the changes in its net assets and the financial highlights for the respective stated periods, in conformity with accounting principles generally accepted in the United States of America. DELOITTE & TOUCHE LLP Chicago, Illinois August 6, 2003 25 DIVIDEND REINVESTMENT PLAN The Fund pays distributions in cash, but if you own more than 100 shares in your own name, you may elect to participate in the Fund's dividend reinvestment plan (the "Plan"). Under the Plan, shares will be issued by the Fund at net asset value on a date determined by the Board of Trustees between the record and payable dates on each distribution; however, if the market price including brokerage commissions, is less than the net asset value, the amount of the distribution will be paid to the Plan Agent, which will buy such shares as are available at prices below the net asset value. (If the market price is not significantly less than the net asset value, it is possible that open market purchases of shares may increase the market price so that such price plus brokerage commissions would equal or exceed the net asset value of such shares.) If the Plan Agent cannot buy the necessary shares at less than net asset value before the distribution date, the balance of the distribution will be made in authorized but unissued shares of the Fund at net asset value. The cost per share will be the average cost, including brokerage commissions, of all shares purchased. Since all shares purchased from the Fund are at net asset value, there will be no dilution, and no brokerage commissions are charged on such shares. You will receive tax information annually for your personal records and to help you prepare your federal income tax return. The automatic reinvestment of dividends and capital gain distributions does not relieve you of any income tax which may be payable (or required to be withheld) on dividends or distributions. You may begin or discontinue participation in the Plan at any time by written notice to the address below. If you withdraw from the Plan, you may rejoin at any time if you own the required 100 shares. Elections and terminations will be effective for distributions declared after receipt. If you withdraw from the Plan, a certificate for the whole shares and a check for the fractional shares, if any, credited to your Plan account will be sent as soon as practicable after receipt of your election to withdraw. Except for brokerage commissions, if any, which are borne by Plan participants, all costs of the Plan are borne by the Fund. The Fund reserves the right to amend or terminate the Plan on 30 days' written notice prior to the record date of the distribution for which such amendment or termination is effective. Record stockholders should address all notices, correspondence, questions or other communications about the Plan to: State Street Bank and Trust Company c/o EquiServe LLP P.O. Box 8200 Boston, MA 02266-8200 1-800-821-1238 If your shares are not held directly in your name, you should contact your brokerage firm, bank or other nominee for more information and to see if your nominee will participate in the Plan on your behalf. If you participate through your broker and choose to move your account to another broker, you will need to re-enroll in the Plan through your new broker. 26 BOARD OF TRUSTEES AND IMPORTANT ADDRESSES VAN KAMPEN BOND FUND BOARD OF TRUSTEES DAVID C. ARCH J. MILES BRANAGAN(1) JERRY D. CHOATE ROD DAMMEYER LINDA HUTTON HEAGY R. CRAIG KENNEDY HOWARD J KERR MITCHELL M. MERIN(1) THEODORE A. MYERS JACK E. NELSON(1) RICHARD F. POWERS, III HUGO F. SONNENSCHEIN WAYNE W. WHALEN* - Chairman SUZANNE H. WOOLSEY INVESTMENT ADVISER VAN KAMPEN ASSET MANAGEMENT INC. 1 Parkview Plaza P.O. Box 5555 Oakbrook Terrace, Illinois 60181-5555 CUSTODIAN AND SHAREHOLDER SERVICING AGENT STATE STREET BANK AND TRUST COMPANY c/o EquiServe LLP 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 Inquiries about an investor's account should be referred to the Fund's transfer agent State Street Bank and Trust Company c/o EQUISERVE LLP P.O. Box 43011 Providence, Rhode Island 02940-3011 Telephone: (800) 821-1238 Alaska and Hawaii Call Collect: (781) 575-2000 Ask for Closed-End Fund Account Services * "Interested persons" of the Fund, as defined in the Investment Company Act of 1940, as amended. (1) Appointed to the Board of Trustees effective July 23, 2003. 27 RESULTS OF SHAREHOLDER VOTES The Annual Meeting of Shareholders of the Fund was held on June 24, 2003, where shareholders voted on the election of trustees. With regards to the election of the following trustees by the common shareholders of the Fund:

The other trustees of the Fund whose terms did not expire in 2003 are David C. Arch, Howard J Kerr, Theodore A. Myers, Richard F. Powers, III, Hugo F. Sonnenschein. 28 TRUSTEES AND OFFICERS The business and affairs of the Fund are managed under the direction of the Fund's Board of Trustees and the Fund's officers appointed by the Board of Trustees. The tables below list the trustees and executive officers of the Fund and their principal occupations during the last five years, other directorships held by trustees and their affiliations, if any, with Van Kampen Investments Inc. ("Van Kampen Investments"), Van Kampen Investment Advisory Corp. ("Advisory Corp."), Van Kampen Asset Management Inc. ("Asset Management"), Van Kampen Funds Inc. (the "Distributor"), Van Kampen Advisors Inc., Van Kampen Exchange Corp. and Van Kampen Investor Services Inc. ("Investor Services"). Advisory Corp. and Asset Management sometimes are referred to herein collectively as the "Advisers." The term "Fund Complex" includes each of the investment companies advised by the Advisers or their affiliates as of the date of this Statement of Additional Information. Trustees serve until reaching their retirement age or until their successors are duly elected and qualified. Officers are annually elected by the trustees. INDEPENDENT TRUSTEES

29

30

31

32

33 INTERESTED TRUSTEES*

34

• Such trustee is an "interested person" (within the meaning of Section 2(a)(19) of the 1940 Act). Mr. Whalen is an interested person of certain funds in the Fund Complex by reason of his firm currently acting as legal counsel to such funds in the Fund Complex. Messrs. Merin and Powers are interested persons of funds in the Fund Complex and the Advisers by reason of their current or former positions with Morgan Stanley or its affiliates. 35 OFFICERS

36

37 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 conduct with us, our affiliates, or third parties. We may also collect information you provide when using our Web site, and text files (also known as "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 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. Member NASD/SIPC. VBF ANR 8/03 11610H03-AS-8/03 Item 2. Code of Ethics. Applicable only for reports covering fiscal years ending on or after July 15, 2003. Item 3. Audit Committee Financial Expert. Applicable only for reports covering fiscal years ending on or after July 15, 2003. Item 4. Principal Accountant Fees and Services. Applicable only for reports covering fiscal years ending on or after December 15, 2003. Item 5. Audit Committee of Listed Registrants. Applicable only for reports covering periods ending on or after the earlier of (i) the first annual shareholder meeting after January 15, 2004 or (ii) October 31, 2004. Item 6. [Reserved.] Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. The Trust invests in exclusively non-voting securities and therefore this item is not applicable to the Trust. 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 - Applicable only for reports covering fiscal years ending on or after July 15, 2003. (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 Bond Fund ---------------------------------------------------------------- By: /s/ Ronald E. Robison ------------------------------------------------------------------------- Name: Ronald E. Robison Title: Principal Executive Officer Date: August 19, 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: August 19, 2003 By: /s/ John L. Sullivan ------------------------------------------------------------------------ Name: John L. Sullivan Title: Principal Financial Officer Date: August 19, 2003