VAN KAMPEN CALIFORNIA MUNICIPAL TRUST
October 11, 2005
Dear Shareholder:
We are writing to notify you again of a special meeting (the "Special
Meeting") of the preferred shareholders of Van Kampen California Municipal Trust
("California Municipal Trust") which has been adjourned to a new date of
November 22, 2005 and to announce a new record date for preferred shareholders
entitled to vote at the meeting. The Special Meeting will be held at the offices
of Van Kampen Investments Inc., 1 Parkview Plaza, Oakbrook Terrace, Illinois
60181-5555 at 9:00 a.m. Central Time. The purpose of the Special Meeting is:
1. To approve an Agreement and Plan of Reorganization between California
Municipal Trust and Van Kampen California Value Municipal Income Trust
(the "Acquiring Fund"), the termination of California Municipal Trust's
registration under the Investment Company Act of 1940, as amended, and
the dissolution of California Municipal Trust under applicable state
law; and
2. To transact such other business as may properly be presented at the
adjourned Special Meeting or any further adjournment thereof.
A Notice of Joint Special Meeting of Shareholders dated May 6, 2005 (the
"Original Notice") was previously mailed to shareholders of California Municipal
Trust. Proposal 2 in the Original Notice regarding the election of four trustees
of California Municipal Trust passed at the initial Special Meeting of
shareholders of California Municipal Trust held on June 22, 2005. Proposals
1.b., 1.c. and 3. in the Original Notice with respect to the reorganizations of
Van Kampen California Quality Municipal Trust into the Acquiring Fund and of Van
Kampen Trust for Investment Grade California Municipals into the Acquiring Fund
and the issuance of additional common shares by the Acquiring Fund as part of
all reorganizations presented in the proxy materials passed at an adjourned
Special Meeting held on July 22, 2005. The reorganizations of Van Kampen
California Quality Municipal Trust into the Acquiring Fund and of Van Kampen
Trust for Investment Grade California Municipals into the Acquiring Fund were
completed on July 29, 2005. At an adjourned Special Meeting of shareholders of
California Municipal Trust held on September 23, 2005, Proposal 1.a. in the
Original Notice passed with respect to the holders of common shares of
California Municipal Trust voting as a separate class from the holders of
preferred shares. The Board of Trustees of California Municipal Trust has
further adjourned the Special Meeting with respect to the preferred shareholder
separate class vote on Proposal 1.a. in the Original Notice (which is listed as
Proposal 1. above) to November 22, 2005 to allow additional time to solicit
votes from preferred shareholders of California Municipal Trust in connection
with the proposed reorganization into the Acquiring Fund.
In addition, the Board of Trustees of California Municipal Trust has
established a new record date of October 7, 2005 for holders of preferred shares
of California Municipal Trust entitled to vote at the adjourned Special Meeting.
Only preferred shareholders of record at the close of business on the new record
date are entitled to notice of and to vote at the adjourned Special Meeting (and
any further adjournments thereof). The information in this letter amends the
Original Notice, the Joint Proxy Statement/Prospectus and any other information
about the meeting previously delivered to you.
- WHETHER OR NOT YOU HAVE PREVIOUSLY VOTED YOUR SHARES, please disregard
any proxy card that you may have received previously and cast your vote
on the enclosed proxy card by following the directions thereon. You may
also cast your vote by telephone or internet using the instructions
provided on the enclosed proxy card. PROXIES FOR PREFERRED SHARES OF
CALIFORNIA MUNICIPAL TRUST PREVIOUSLY VOTED ON PROPOSAL 1.A. IN THE
ORIGINAL NOTICE (WHETHER VOTED ON A PROXY CARD, BY TELEPHONE OR VIA THE
INTERNET) WILL NOT BE COUNTED ON PROPOSAL 1. ABOVE, SO EVEN IF YOU
PREVIOUSLY VOTED ON SUCH PROPOSAL, PLEASE VOTE AGAIN. The Board of
Trustees of California Municipal Trust recommend a vote "FOR" the
reorganization and subsequent dissolution and termination of registration
of California Municipal Trust, for the reasons discussed in the Joint
Proxy Statement/Prospectus. If you have any questions, please contact the
Van Kampen Client Relations Department at 1-800-341-2929.
PLEASE REMEMBER TO VOTE YOUR SHARES AS SOON AS POSSIBLE.
At the close of business on October 7, 2005, California Municipal Trust had
outstanding 3,257,560 common shares and 400 preferred shares. At the close of
business on October 7, 2005, the Acquiring Fund had outstanding 19,982,083
common shares and 7,200 preferred shares. As of such date, to the knowledge of
California Municipal Trust and the Acquiring Fund (the "Funds"), no shareholder
owned beneficially more than 5% of the outstanding common shares of California
Municipal Trust or the Acquiring Fund.
The table below indicates the number of common shares of the Funds owned
beneficially by Rod Dammeyer, a trustee of the Funds, as of October 7, 2005, and
the percentage that such common shares represent of the total common shares
outstanding for such Funds.
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COMMON SHARES
OWNED AS A
PERCENTAGE OF
COMMON SHARES
FUND COMMON SHARES OWNED OUTSTANDING
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California Municipal Trust...................... 80,750 2.48%
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Acquiring Fund.................................. 215,007 1.08%
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To the knowledge of the Funds, no other trustee or executive officer owned,
directly or beneficially, common shares of the Funds as of October 7, 2005, and
no trustees or executive officers owned preferred shares of the Funds as of that
date.
The Acquiring Fund currently has three series of auction preferred shares.
If the reorganization of California Municipal Trust into the Acquiring Fund is
approved and completed, the Acquiring Fund will issue Series D APS in exchange
for the preferred shares of California Municipal Trust, and the combined fund
will have four series of auction preferred shares.
The following table provides information about the dividend rates for
California Municipal Trust's and the Acquiring Fund's preferred shares as of a
recent remarketing or auction date, as applicable:
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REMARKETING/AUCTION DATE FUND/SERIES RATE
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September 13, 2005 California Municipal Trust 2.370%
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October 5, 2005 Acquiring Fund, Series A 2.500%
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September 27, 2005 Acquiring Fund, Series B 2.400%
----------------------------------------------------------------------------------------------
September 13, 2005 Acquiring Fund, Series C 1.900%
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The dividend rates in effect at the closing of the reorganization of
California Municipal Trust into the Acquiring Fund will be the rate determined
in the remarketing for California Municipal Trust's preferred shares most
recently preceding such closing.
Additionally, the following changes have occurred with respect to the
trustees and executive officers of California Municipal Trust and the Acquiring
Fund (each of which is a fund in the "Fund Complex"):
(1) Effective September 22, 2005, Mitchell M. Merin has resigned as
Trustee/Director/Managing General Partner and President of the funds in
the Fund Complex and all references to him in the Joint Proxy
Statement/Prospectus are hereby deleted.
(2) Effective September 22, 2005, Ronald E. Robison was named President of
the funds in the Fund Complex.
(3) Effective September 22, 2005, Richard F. Powers III has resigned as
Trustee/Director/Managing General Partner of the funds in the Fund
Complex and all references to him in the Joint Proxy
Statement/Prospectus are hereby deleted.
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(4) In the section entitled "OTHER INFORMATION--Executive Officers of the
Funds," under the list of officers, Phillip G. Goff replaces James W.
Garrett as follows:
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Phillip G. Goff (41) Chief Financial Officer Executive Director of Morgan
1 Parkview Plaza Officer and Treasurer Since 2005 Stanley Investment Management
Oakbrook Terrace, IL 60181 since June 2005. Chief
Financial Officer and
Treasurer of the funds in the
Fund Complex since August
2005. Prior to June 2005, Vice
President and Chief Financial
Officer of Enterprise Capital
Management, Inc., an
investment holding company.
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To the extent the information in the Original Notice and Joint Proxy
Statement/Prospectus has not been amended by this letter, such information
remains applicable to this solicitation of proxies and the Special Meeting of
shareholders. If you would like another copy of the Joint Proxy
Statement/Prospectus, please contact us at 1-800-341-2929.
We appreciate your careful and prompt consideration of this matter.
Sincerely,
Van Kampen California Municipal Trust
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