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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANY
INVESTMENT COMPANY
Investment
Company Act file number 811-05769
Invesco Van Kampen High Income Trust II
(Exact name of registrant as specified in charter)
| 1555 Peachtree Street, N.E., Atlanta, Georgia | 30309 | |
| (Address of principal executive offices) | (Zip code) |
Colin Meadows 1555 Peachtree Street, N.E., Atlanta, Georgia 30309
(Name and address of agent for service)
Registrant’s telephone number, including area code: (713) 626-1919
Date of fiscal year end: 2/28
Date of reporting period: 5/31/11
Invesco Van Kampen High Income Trust II
Quarterly Schedule of Portfolio Holdings
May 31, 2011
Quarterly Schedule of Portfolio Holdings
May 31, 2011
 invesco.com/us |
VK-CE-HINC2-QTR-1 05/11 | Invesco Advisers, Inc. |
Schedule of Investments
May 31, 2011
(Unaudited)
May 31, 2011
(Unaudited)
| Principal | ||||||||
| Amount | Value | |||||||
U.S. Dollar Denominated Bonds & Notes—119.23%(a) |
||||||||
Aerospace & Defense—2.79% |
||||||||
Alliant Techsystems, Inc., Sr. Unsec. Gtd. Sub. Notes, 6.88%, 09/15/20 |
$ | 35,000 | $ | 36,925 | ||||
BE Aerospace, Inc., Sr. Unsec. Notes, 6.88%, 10/01/20 |
220,000 | 233,750 | ||||||
Bombardier, Inc. (Canada), Sr. Notes, 7.75%, 03/15/20(b) |
295,000 | 331,875 | ||||||
Hexcel Corp., Sr. Unsec. Sub. Global Notes, 6.75%, 02/01/15 |
352,000 | 360,800 | ||||||
Huntington Ingalls Industries, Inc.,
Sr. Unsec. Gtd. Notes, 6.88%, 03/15/18(b) |
65,000 | 67,925 | ||||||
7.13%, 03/15/21(b) |
95,000 | 99,394 | ||||||
Spirit Aerosystems, Inc., Sr. Unsec. Gtd. Global Notes, 6.75%, 12/15/20 |
140,000 | 143,850 | ||||||
Triumph Group, Inc., Sr. Unsec. Gtd. Sub. Global Notes, 8.00%, 11/15/17 |
440,000 | 473,000 | ||||||
| 1,747,519 | ||||||||
Airlines—3.77% |
||||||||
American Airlines Pass Through Trust-Series 2011-1, Class B, Sec. Gtd. Pass Through Ctfs., 7.00%,
01/31/18(b) |
80,000 | 76,600 | ||||||
American Airlines, Inc., Sr. Sec. Gtd. Notes, 7.50%, 03/15/16(b) |
110,000 | 109,175 | ||||||
Continental Airlines Inc.,
Series 2007-1, Class C,
Sec. Sub. Global Pass Through Ctfs.,
7.34%, 04/19/14 |
708,111 | 711,652 | ||||||
Series 2009-2, Class B,
Sec. Global Pass Through Ctfs.,
9.25%, 05/10/17 |
107,332 | 112,430 | ||||||
Delta Air Lines, Inc.,
Sec. Notes,
12.25%, 03/15/15(b) |
85,000 | 96,475 | ||||||
Sr. Sec. Notes,
9.50%, 09/15/14(b) |
485,000 | 523,800 | ||||||
Series 2010-1, Class B,
Sec. Pass Through Ctfs.,
6.38%, 01/02/16 |
85,000 | 80,750 | ||||||
Series 2010-2, Class B,
Sec. Pass Through Ctfs.,
6.75%, 11/23/15 |
100,000 | 95,750 | ||||||
Series 2007-1, Class A,
Sec. Gtd. Global Pass Through Ctfs.,
6.64%, 07/02/22 |
101,781 | 103,245 | ||||||
Series 2009-2, Class B,
Sec. Gtd. Pass Through Ctfs.,
12.00%, 01/15/16(b) |
224,372 | 247,370 | ||||||
US Airways-Series 1998-1, Class C, Sec. Pass Through Ctfs., 6.82%, 01/30/14 |
224,790 | 206,807 | ||||||
| 2,364,054 | ||||||||
Alternative Carriers—1.54% |
||||||||
Cogent Communications Group, Inc., Sr. Sec. Gtd. Notes, 8.38%, 02/15/18(b) |
250,000 | 261,875 | ||||||
Level 3 Communications, Inc., Sr. Unsec. Notes, 11.88%, 02/01/19(b) |
245,000 | 272,869 | ||||||
Level 3 Escrow, Inc., Sr. Unsec. Notes, 8.13%, 07/01/19(b) |
100,000 | 101,750 | ||||||
Level 3 Financing, Inc.,
Sr. Unsec. Gtd. Global Notes,
9.25%, 11/01/14 |
190,000 | 195,700 | ||||||
Sr. Unsec. Gtd. Notes,
9.38%, 04/01/19(b) |
125,000 | 132,812 | ||||||
| 965,006 | ||||||||
Aluminum—0.34% |
||||||||
Century Aluminum Co., Sr. Sec. Gtd. Sub. Notes, 8.00%, 05/15/14 |
210,000 | 214,856 | ||||||
Apparel Retail—0.87% |
||||||||
Brown Shoe Co., Inc., Sr. Gtd. Notes, 7.13%, 05/15/19(b) |
35,000 | 34,125 | ||||||
Express LLC/Express Finance Corp., Sr. Unsec. Gtd. Global Notes, 8.75%, 03/01/18 |
255,000 | 277,312 | ||||||
Gap Inc. (The), Sr. Unsec. Notes, 5.95%, 04/12/21 |
90,000 | 88,366 | ||||||
J Crew Group, Inc., Sr. Notes, 8.13%, 03/01/19(b) |
35,000 | 33,775 | ||||||
Limited Brands, Inc., Sr. Unsec. Gtd. Notes, 6.63%, 04/01/21 |
110,000 | 114,813 | ||||||
| 548,391 | ||||||||
Apparel, Accessories & Luxury Goods—2.22% |
||||||||
Hanesbrands Inc., Sr. Unsec. Gtd. Global Notes, 6.38%, 12/15/20 |
220,000 | 216,700 | ||||||
Jones Group Inc. (The), Sr. Unsec. Notes, 6.88%, 03/15/19 |
585,000 | 570,375 | ||||||
Phillips-Van Heusen Corp., Sr. Unsec. Notes, 7.38%, 05/15/20 |
140,000 | 151,900 | ||||||
Quiksilver Inc., Sr. Unsec. Gtd. Global Notes, 6.88%, 04/15/15 |
460,000 | 452,525 | ||||||
| 1,391,500 | ||||||||
See accompanying notes which are an integral part of this schedule.
Invesco Van Kampen High Income Trust II
| Principal | ||||||||
| Amount | Value | |||||||
Asset Management & Custody Banks—0.61% |
||||||||
First Data Corp., Sr. Sec. Gtd. Notes, 7.38%, 06/15/19(b) |
$ | 120,000 | $ | 122,400 | ||||
Travelport LLC/Inc., Sr. Unsec. Gtd. Global Notes, 9.00%, 03/01/16 |
290,000 | 256,650 | ||||||
| 379,050 | ||||||||
Auto Parts & Equipment—0.93% |
||||||||
Allison Transmission, Inc., Sr. Unsec. Gtd Notes, 7.13%, 05/15/19(b) |
250,000 | 250,625 | ||||||
Dana Holding Corp.,
Sr. Unsec. Notes,
6.50%, 02/15/19 |
80,000 | 80,000 | ||||||
6.75%, 02/15/21 |
65,000 | 65,325 | ||||||
Tenneco Inc.,
Sr. Gtd. Global Notes,
6.88%, 12/15/20 |
65,000 | 67,437 | ||||||
Sr. Unsec. Gtd. Global Notes,
7.75%, 08/15/18 |
110,000 | 116,875 | ||||||
| 580,262 | ||||||||
Automobile Manufacturers—0.04% |
||||||||
General Motors Corp., Escrow,
8.34%, 07/15/33(c) |
795,000 | 27,825 | ||||||
Biotechnology—0.25% |
||||||||
Giant Funding Corp., Sr. Sec. Notes, 8.25%, 02/01/18(b) |
70,000 | 74,025 | ||||||
STHI Holding Corp., Sec. Notes, 8.00%, 03/15/18(b) |
80,000 | 83,000 | ||||||
| 157,025 | ||||||||
Broadcasting—1.49% |
||||||||
Allbritton Communications Co., Sr. Unsec. Global Notes, 8.00%, 05/15/18 |
155,000 | 161,975 | ||||||
Nielsen Finance LLC/Co., Sr. Unsec. Gtd. Global Notes, 11.63%, 02/01/14 |
651,000 | 773,062 | ||||||
| 935,037 | ||||||||
Building Products—6.91% |
||||||||
Associated Materials LLC, Sr. Sec. Gtd. Notes, 9.13%, 11/01/17(b) |
665,000 | 684,950 | ||||||
Building Materials Corp. of America,
Sr. Notes,
6.88%, 08/15/18(b) |
590,000 | 609,175 | ||||||
Sr. Sec. Gtd. Notes,
7.50%, 03/15/20(b) |
170,000 | 180,625 | ||||||
Gibraltar Industries Inc.-Series B, Sr. Unsec. Gtd. Sub. Global Notes, 8.00%, 12/01/15 |
270,000 | 278,775 | ||||||
Nortek Inc.,
Sr. Gtd. Notes,
8.50%, 04/15/21(b) |
460,000 | 443,900 | ||||||
Sr. Unsec. Gtd. Notes,
10.00%, 12/01/18(b) |
195,000 | 203,775 | ||||||
Ply Gem Industries Inc.,
Sr. Sec. Gtd. Notes,
8.25%, 02/15/18(b) |
315,000 | 309,487 | ||||||
Sr. Unsec. Gtd. Sub. Global Notes,
13.13%, 07/15/14 |
145,000 | 157,325 | ||||||
Roofing Supply Group LLC/Roofing Supply Finance Inc., Sr. Sec. Notes, 8.63%, 12/01/17(b) |
510,000 | 526,575 | ||||||
USG Corp.,
Sr. Gtd. Notes,
8.38%, 10/15/18(b) |
30,000 | 31,013 | ||||||
Sr. Unsec. Gtd. Notes,
9.75%, 08/01/14(b) |
670,000 | 726,950 | ||||||
Sr. Unsec. Notes,
9.75%, 01/15/18 |
175,000 | 181,125 | ||||||
| 4,333,675 | ||||||||
Cable & Satellite—2.00% |
||||||||
CSC Holdings LLC, Sr. Unsec. Global Notes, 8.63%, 02/15/19 |
355,000 | 409,581 | ||||||
EH Holding Corp.,
Sr. Sec. Notes,
6.50%, 06/15/19(b) |
120,000 | 122,400 | ||||||
Sr. Unsec. Notes,
7.63%, 06/15/21(b) |
70,000 | 72,100 | ||||||
Intelsat Jackson Holdings S.A. (Luxembourg), Sr. Unsec. Gtd. Notes, 7.50%, 04/01/21(b) |
95,000 | 96,188 | ||||||
Kabel BW Erste Beteiligungs GmbH (Germany), Sr. Sec. Gtd. Notes, 7.50%, 03/15/19(b) |
525,000 | 554,460 | ||||||
| 1,254,729 | ||||||||
Casinos & Gaming—7.22% |
||||||||
Ameristar Casinos Inc., Sr. Unsec. Gtd. Notes, 7.50%, 04/15/21(b) |
140,000 | 146,300 | ||||||
Boyd Gaming Corp., Sr. Notes, 9.13%, 12/01/18(b) |
35,000 | 36,619 | ||||||
Caesars Entertainment Operating Co. Inc.,
Sec. Global Notes,
12.75%, 04/15/18 |
260,000 | 268,450 | ||||||
Sr. Sec. Gtd. Global Notes,
11.25%, 06/01/17 |
795,000 | 900,337 | ||||||
Sr. Unsec. Gtd. Global Bonds,
5.63%, 06/01/15 |
295,000 | 253,700 | ||||||
CityCenter Holdings LLC/CityCenter Finance Corp.,
Sec. Gtd. PIK Notes,
10.75%, 01/15/17(b) |
70,000 | 78,138 | ||||||
Sr. Sec. Gtd. Notes,
7.63%, 01/15/16(b) |
20,000 | 20,750 | ||||||
See accompanying notes which are an integral part of this schedule.
Invesco Van Kampen High Income Trust II
| Principal | ||||||||
| Amount | Value | |||||||
Casinos & Gaming—(continued) |
||||||||
Great Canadian Gaming Corp. (Canada), Sr. Unsec. Gtd. Sub. Notes, 7.25%, 02/15/15(b) |
$ | 245,000 | $ | 249,900 | ||||
Mandalay Resort Group, Sr. Unsec. Gtd. Sub. Notes, 7.63%, 07/15/13 |
105,000 | 106,050 | ||||||
MGM Resorts International,
Sr. Unsec. Gtd. Global Notes,
6.63%, 07/15/15 |
170,000 | 166,175 | ||||||
Sr. Unsec. Gtd. Notes,
10.00%, 11/01/16(b) |
115,000 | 125,781 | ||||||
Pinnacle Entertainment Inc., Sr. Unsec. Gtd. Global Notes, 8.63%, 08/01/17 |
250,000 | 275,313 | ||||||
Scientific Games Corp., Sr. Sub. Notes, 8.13%, 09/15/18(b) |
35,000 | 36,925 | ||||||
Scientific Games International Inc., Sr. Unsec. Gtd. Sub. Global Notes, 9.25%, 06/15/19 |
350,000 | 384,562 | ||||||
Seneca Gaming Corp., Sr. Unsec. Gtd. Notes, 8.25%, 12/01/18(b) |
90,000 | 94,950 | ||||||
Snoqualmie Entertainment Authority,
Sr. Sec. Floating Rate Notes,
4.20%, 02/01/14(b)(d) |
200,000 | 183,500 | ||||||
Sr. Sec. Notes,
9.13%, 02/01/15(b) |
405,000 | 409,050 | ||||||
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp.,
Sec. Gtd. First Mortgage Global Notes,
7.75%, 08/15/20 |
525,000 | 578,812 | ||||||
Sr. Sec. Gtd. First Mortgage Global Notes,
7.88%, 05/01/20 |
190,000 | 209,713 | ||||||
| 4,525,025 | ||||||||
Coal & Consumable Fuels—0.32% |
||||||||
Alpha Natural Resources Inc.,
Sr. Unsec. Gtd. Notes,
6.00%, 06/01/19 |
65,000 | 65,894 | ||||||
6.25%, 06/01/21 |
35,000 | 35,875 | ||||||
CONSOL Energy Inc., Sr. Unsec. Gtd. Global Notes, 8.25%, 04/01/20 |
90,000 | 100,350 | ||||||
| 202,119 | ||||||||
Commodity Chemicals—0.77% |
||||||||
Westlake Chemical Corp., Sr. Unsec. Gtd. Notes, 6.63%, 01/15/16 |
465,000 | 479,822 | ||||||
Communications Equipment—0.77% |
||||||||
Avaya, Inc., Sr. Sec. Gtd. Notes, 7.00%, 04/01/19(b) |
410,000 | 401,800 | ||||||
CommScope Inc., Sr. Unsec. Gtd. Notes, 8.25%, 01/15/19(b) |
75,000 | 79,312 | ||||||
| 481,112 | ||||||||
Computer & Electronics Retail—0.14% |
||||||||
RadioShack Corp., Sr. Gtd. Notes, 6.75%, 05/15/19(b) |
35,000 | 35,263 | ||||||
Rent-A-Center, Inc., Sr. Unsec. Gtd. Notes, 6.63%, 11/15/20(b) |
50,000 | 50,125 | ||||||
| 85,388 | ||||||||
Computer Hardware—0.23% |
||||||||
SunGard Data Systems Inc.,
Sr. Unsec. Global Notes,
7.63%, 11/15/20 |
70,000 | 72,800 | ||||||
Sr. Unsec. Gtd. Global Notes,
7.38%, 11/15/18 |
70,000 | 71,750 | ||||||
| 144,550 | ||||||||
Computer Storage & Peripherals—0.54% |
||||||||
Seagate HDD Cayman (Cayman Islands), Sr. Unsec. Gtd. Notes, 7.75%, 12/15/18(b) |
235,000 | 250,275 | ||||||
Sr. Unsec. Gtd. Notes, 7.00%, 11/01/21(b) |
85,000 | 86,488 | ||||||
| 336,763 | ||||||||
Construction & Engineering—1.81% |
||||||||
Dycom Investments Inc., Sr. Sub. Notes, 7.13%, 01/15/21(b) |
100,000 | 103,750 | ||||||
Great Lakes Dredge & Dock Corp., Sr. Unsec. Gtd. Notes, 7.38%, 02/01/19(b) |
70,000 | 71,662 | ||||||
MasTec, Inc., Sr. Unsec. Gtd. Global Notes, 7.63%, 02/01/17 |
295,000 | 302,375 | ||||||
Tutor Perini Corp., Sr. Unsec. Gtd. Notes, 7.63%, 11/01/18(b) |
660,000 | 656,700 | ||||||
| 1,134,487 | ||||||||
Construction & Farm Machinery & Heavy Trucks—2.22% |
||||||||
Case New Holland Inc., Sr. Notes, 7.88%, 12/01/17(b) |
255,000 | 286,556 | ||||||
CNH America LLC, Sr. Unsec. Gtd. Notes, 7.25%, 01/15/16 |
150,000 | 164,250 | ||||||
Commercial Vehicle Group, Inc., Sr. Sec. Gtd. Notes, 7.88%, 04/15/19(b) |
185,000 | 190,087 | ||||||
Manitowoc Co. Inc. (The), Sr. Unsec. Gtd. Notes, 8.50%, 11/01/20 |
145,000 | 158,413 | ||||||
Navistar International Corp., Sr. Unsec. Gtd. Notes, 8.25%, 11/01/21 |
365,000 | 402,412 | ||||||
Oshkosh Corp., Sr. Unsec. Gtd. Global Notes, 8.50%, 03/01/20 |
75,000 | 83,063 | ||||||
Titan International Inc., Sr. Sec. Gtd. Notes, 7.88%, 10/01/17(b) |
100,000 | 108,250 | ||||||
| 1,393,031 | ||||||||
Construction Materials—2.10% |
||||||||
Building Materials Corp. of America, Sr. Notes, 6.75%, 05/01/21(b) |
120,000 | 121,800 | ||||||
See accompanying notes which are an integral part of this schedule.
Invesco Van Kampen High Income Trust II
| Principal | ||||||||
| Amount | Value | |||||||
Construction Materials—(continued) |
||||||||
Cemex Finance LLC, Sr. Sec. Gtd. Bonds, 9.50%, 12/14/16(b) |
$ | 410,000 | $ | 439,242 | ||||
Cemex S.A.B. de C.V. (Mexico), Sr. Sec. Gtd. Notes, 9.00%, 01/11/18(b) |
130,000 | 135,838 | ||||||
Texas Industries Inc., Sr. Unsec. Gtd. Global Notes, 9.25%, 08/15/20 |
585,000 | 622,294 | ||||||
| 1,319,174 | ||||||||
Consumer Finance—3.74% |
||||||||
Ally Financial Inc.,
Sr. Unsec. Gtd. Global Notes,
8.00%, 03/15/20 |
60,000 | 66,450 | ||||||
7.50%, 09/15/20 |
1,210,000 | 1,306,800 | ||||||
Ford Motor Credit Co. LLC, Sr. Unsec. Notes, 8.00%, 12/15/16 |
601,000 | 694,155 | ||||||
National Money Mart Co. (Canada), Sr. Unsec. Gtd. Global Notes, 10.38%, 12/15/16 |
250,000 | 280,625 | ||||||
| 2,348,030 | ||||||||
Data Processing & Outsourced Services—0.63% |
||||||||
CoreLogic, Inc., Sr. Unsec. Gtd. Notes, 7.25%, 06/01/21(b) |
395,000 | 393,906 | ||||||
Department Stores—0.72% |
||||||||
Sears Holdings Corp., Sec. Gtd. Notes, 6.63%, 10/15/18(b) |
490,000 | 453,250 | ||||||
Distillers & Vintners—0.67% |
||||||||
CEDC Finance Corp. International, Inc., Sr. Sec. Gtd. Notes, 9.13%, 12/01/16(b) |
100,000 | 95,250 | ||||||
Constellation Brands, Inc., Sr. Unsec. Gtd. Global Notes, 7.25%, 05/15/17 |
295,000 | 322,287 | ||||||
| 417,537 | ||||||||
Diversified Banks—0.17% |
||||||||
RBS Capital Trust II, Jr. Unsec. Gtd. Sub. Global Bonds, 6.43%, 12/29/49(i) |
140,000 | 105,875 | ||||||
Diversified Metals & Mining—0.54% |
||||||||
Midwest Vanadium Pty Ltd. (Australia), Sr. Sec. Gtd. Notes, 11.50%, 02/15/18(b) |
90,000 | 94,907 | ||||||
Mirabela Nickel Ltd. (Australia), Sr. Unsec. Gtd. Notes, 8.75%, 04/15/18(b) |
40,000 | 40,783 | ||||||
Taseko Mines Ltd. (Canada), Sr. Unsec. Gtd. Notes, 7.75%, 04/15/19 |
20,000 | 20,665 | ||||||
Thompson Creek Metals Co. Inc. (Canada), Sr. Gtd. Notes, 7.38%, 06/01/18(b) |
30,000 | 30,405 | ||||||
Vedanta Resources PLC (United Kingdom), Sr. Unsec. Notes, 9.50%, 07/18/18(b) |
140,000 | 154,972 | ||||||
| 341,732 | ||||||||
Diversified Support Services—1.62% |
||||||||
International Lease Finance Corp.,
Sr. Unsec. Global Notes,
5.75%, 05/15/16 |
55,000 | 55,516 | ||||||
8.75%, 03/15/17 |
737,000 | 834,192 | ||||||
6.25%, 05/15/19 |
90,000 | 90,337 | ||||||
Mobile Mini, Inc., Sr. Unsec. Gtd. Notes, 7.88%, 12/01/20(b) |
35,000 | 37,275 | ||||||
| 1,017,320 | ||||||||
Electrical Components & Equipment—0.11% |
||||||||
Polypore International, Inc., Sr. Unsec. Gtd. Notes, 7.50%, 11/15/17(b) |
65,000 | 69,388 | ||||||
Electronic Manufacturing Services—0.35% |
||||||||
Sanmina-SCI Corp., Sr. Unsec. Gtd. Notes, 7.00%, 05/15/19(b) |
225,000 | 220,500 | ||||||
Environmental & Facilities Services—0.55% |
||||||||
Clean Harbors Inc., Sr. Sec. Gtd. Notes, 7.63%, 08/15/16(b) |
192,000 | 206,400 | ||||||
EnergySolutions Inc./LLC, Sr. Unsec. Gtd. Notes, 10.75%, 08/15/18(b) |
130,000 | 140,075 | ||||||
| 346,475 | ||||||||
Food Retail—0.34% |
||||||||
Simmons Foods Inc., Sec. Notes, 10.50%, 11/01/17(b) |
200,000 | 214,500 | ||||||
Forest Products—0.43% |
||||||||
Millar Western Forest Products Ltd. (Canada), Sr. Notes, 8.50%, 04/01/21(b) |
250,000 | 240,000 | ||||||
Sino-Forest Corp. (Canada), Sr. Gtd. Notes, 6.25%, 10/21/17(b) |
30,000 | 27,919 | ||||||
| 267,919 | ||||||||
Gas Utilities—0.75% |
||||||||
Ferrellgas L.P./Ferrellgas Finance Corp., Sr. Unsec. Notes, 6.50%, 05/01/21(b) |
230,000 | 228,850 | ||||||
Suburban Propane Partners, L.P./Suburban Energy Finance Corp., Sr. Unsec. Notes, 7.38%, 03/15/20 |
225,000 | 241,312 | ||||||
| 470,162 | ||||||||
See accompanying notes which are an integral part of this schedule.
Invesco Van Kampen High Income Trust II
| Principal | ||||||||
| Amount | Value | |||||||
Health Care Equipment—0.58% |
||||||||
DJO Finance LLC/DJO Finance Corp.,
Sr. Unsec. Gtd. Notes,
7.75%, 04/15/18(b) |
$ | 35,000 | $ | 36,094 | ||||
Sr. Unsec. Gtd. Sub. Notes,
9.75%, 10/15/17(b) |
85,000 | 90,312 | ||||||
Sr. Unsec. Gtd. Global Notes, 10.88%, 11/15/14 |
220,000 | 237,600 | ||||||
| 364,006 | ||||||||
Health Care Facilities—4.76% |
||||||||
Hanger Orthopedic Group Inc., Sr. Unsec. Gtd. Global Notes, 7.13%, 11/15/18 |
65,000 | 67,600 | ||||||
HCA, Inc., Sr. Sec. Gtd. Global Notes, 7.88%, 02/15/20 |
1,165,000 | 1,284,412 | ||||||
Health Management Associates Inc., Sr. Sec. Gtd. Notes, 6.13%, 04/15/16 |
425,000 | 443,062 | ||||||
Healthsouth Corp.,
Sr. Unsec. Gtd. Notes,
7.25%, 10/01/18 |
50,000 | 53,125 | ||||||
8.13%, 02/15/20 |
70,000 | 77,438 | ||||||
7.75%, 09/15/22 |
90,000 | 96,075 | ||||||
Select Medical Holdings Corp., Sr. Unsec. Floating Rate Global Notes, 6.21%, 09/15/15(d) |
135,000 | 130,950 | ||||||
Tenet Healthcare Corp.,
Sr. Sec. Gtd. Global Notes,
10.00%, 05/01/18 |
350,000 | 401,625 | ||||||
Sr. Unsec. Global Notes,
9.25%, 02/01/15 |
330,000 | 365,063 | ||||||
8.00%, 08/01/20 |
60,000 | 62,400 | ||||||
| 2,981,750 | ||||||||
Health Care Services—0.58% |
||||||||
DaVita Inc., Sr. Unsec. Gtd. Notes, 6.38%, 11/01/18 |
65,000 | 66,788 | ||||||
Radnet Management Inc., Sr. Unsec. Gtd. Global Notes, 10.38%, 04/01/18 |
220,000 | 229,900 | ||||||
Universal Hospital Services Inc., Sec. PIK Global Notes, 8.50%, 06/01/15 |
65,000 | 67,437 | ||||||
| 364,125 | ||||||||
Health Care Technology—0.55% |
||||||||
MedAssets, Inc., Sr. Unsec. Gtd. Notes, 8.00%, 11/15/18(b) |
335,000 | 347,563 | ||||||
Home Furnishings—0.35% |
||||||||
American Standard Americas, Sr. Sec. Notes, 10.75%, 01/15/16(b) |
205,000 | 217,813 | ||||||
Homebuilding—1.30% |
||||||||
Beazer Homes USA Inc.,
Sr. Unsec. Gtd. Global Notes,
6.88%, 07/15/15 |
105,000 | 99,487 | ||||||
8.13%, 06/15/16 |
210,000 | 202,650 | ||||||
K Hovnanian Enterprises Inc., Sr. Sec. Gtd. Global Notes, 10.63%, 10/15/16 |
325,000 | 328,250 | ||||||
M/I Homes Inc., Sr. Unsec. Gtd. Notes, 8.63%, 11/15/18(b) |
95,000 | 94,525 | ||||||
Standard Pacific Corp., Sr. Sec. Gtd. Notes, 8.38%, 05/15/18 |
85,000 | 87,125 | ||||||
| 812,037 | ||||||||
Hotels, Resorts & Cruise Lines—0.06% |
||||||||
Wyndham Worldwide Corp., Sr. Unsec. Notes, 5.63%, 03/01/21 |
35,000 | 35,306 | ||||||
Household Products—0.53% |
||||||||
Central Garden and Pet Co., Sr. Gtd. Sub. Notes, 8.25%, 03/01/18 |
215,000 | 227,900 | ||||||
Reynolds Group Issuer Inc./LLC/Luxembourg S.A., Sr. Unsec. Gtd. Notes, 8.25%, 02/15/21(b) |
100,000 | 102,250 | ||||||
| 330,150 | ||||||||
Housewares & Specialties—0.03% |
||||||||
Jarden Corp., Sr. Unsec. Gtd. Notes, 6.13%, 11/15/22 |
20,000 | 20,250 | ||||||
Independent Power Producers & Energy Traders—1.74% |
||||||||
AES Corp. (The), Sr. Unsec. Global Notes, 7.75%, 10/15/15 |
900,000 | 982,125 | ||||||
AES Red Oak LLC-Series A, Sr. Sec. Bonds, 8.54%, 11/30/19 |
104,808 | 107,690 | ||||||
| 1,089,815 | ||||||||
Industrial Machinery—1.11% |
||||||||
Cleaver-Brooks, Inc., Sr. Sec. Notes, 12.25%, 05/01/16(b) |
305,000 | 319,487 | ||||||
Columbus McKinnon Corp., Sr. Unsec. Gtd. Sub. Notes, 7.88%, 02/01/19(b) |
25,000 | 26,000 | ||||||
Mueller Water Products Inc., Sr. Unsec. Gtd. Global Notes, 8.75%, 09/01/20 |
35,000 | 39,375 | ||||||
SPX Corp., Sr. Unsec. Gtd. Notes, 6.88%, 09/01/17(b) |
290,000 | 311,025 | ||||||
| 695,887 | ||||||||
Industrial REIT’s—0.71% |
||||||||
DuPont Fabros Technology L.P., Sr. Unsec. Gtd. Global Notes, 8.50%, 12/15/17 |
400,000 | 443,000 | ||||||
Integrated Telecommunication Services—2.24% |
||||||||
Integra Telecom Holdings, Inc., Sr. Sec. Notes, 10.75%, 04/15/16(b) |
195,000 | 205,238 | ||||||
Intelsat Jackson Holdings S.A. (Luxembourg), |
||||||||
See accompanying notes which are an integral part of this schedule.
Invesco Van Kampen High Income Trust II
| Principal | ||||||||
| Amount | Value | |||||||
Integrated Telecommunication Services—(continued) |
||||||||
Sr. Unsec. Gtd. Notes,
7.25%, 04/01/19(b) |
$ | 95,000 | $ | 96,425 | ||||
7.25%, 10/15/20(b) |
880,000 | 886,600 | ||||||
VimpelCom (Ireland), Sec. Notes, 7.75%, 02/02/21(b) |
200,000 | 214,100 | ||||||
| 1,402,363 | ||||||||
Internet Software & Services—0.43% |
||||||||
Equinix, Inc., Sr. Unsec. Notes, 8.13%, 03/01/18 |
245,000 | 267,050 | ||||||
Investment Banking & Brokerage—1.11% |
||||||||
Cantor Fitzgerald L.P., Bonds, 7.88%, 10/15/19(b) |
275,000 | 303,478 | ||||||
E*Trade Financial Corp.,
Sr. Notes,
6.75%, 06/01/16 |
90,000 | 90,225 | ||||||
Sr. Unsec. Notes,
7.88%, 12/01/15 |
290,000 | 299,425 | ||||||
| 693,128 | ||||||||
Leisure Facilities—0.11% |
||||||||
Speedway Motorsports, Inc., Sr. Unsec. Gtd. Global Notes, 6.75%, 02/01/19 |
70,000 | 70,788 | ||||||
Leisure Products—0.06% |
||||||||
Toys R US-Delaware Inc., Sr. Sec. Gtd. Notes, 7.38%, 09/01/16(b) |
35,000 | 36,488 | ||||||
Life Sciences Tools & Services—0.29% |
||||||||
Patheon Inc. (Canada), Sr. Sec. Gtd. Notes, 8.63%, 04/15/17(b) |
175,000 | 184,625 | ||||||
Marine—0.46% |
||||||||
CMA CGM S.A. (France), Sr. Unsec. Notes, 8.50%, 04/15/17(b) |
150,000 | 141,543 | ||||||
Navios Martime Acquisition Corp./Navios Acquisition Finance US Inc. (Greece), Sr. Sec. Gtd. Notes,
8.63%, 11/01/17(b) |
35,000 | 36,690 | ||||||
Stena A.B. (Sweden), Sr. Unsec. Global Notes, 7.00%, 12/01/16 |
105,000 | 108,019 | ||||||
| 286,252 | ||||||||
Metal & Glass Containers—0.16% |
||||||||
Ball Corp., Sr. Unsec. Gtd. Notes, 5.75%, 05/15/21 |
100,000 | 100,750 | ||||||
Movies & Entertainment—2.02% |
||||||||
AMC Entertainment Inc.,
Sr. Sub. Notes,
9.75%, 12/01/20(b) |
105,000 | 111,825 | ||||||
Sr. Unsec. Gtd. Global Notes,
8.75%, 06/01/19 |
455,000 | 491,969 | ||||||
Cinemark USA Inc., Sr. Unsec. Gtd. Global Notes, 8.63%, 06/15/19 |
165,000 | 181,087 | ||||||
NAI Entertainment Holdings LLC, Sr. Sec. Notes, 8.25%, 12/15/17(b) |
445,000 | 482,825 | ||||||
| 1,267,706 | ||||||||
Multi-Line Insurance—2.72% |
||||||||
American International Group, Inc., Jr. Sub. Variable Rate Global Deb., 8.18%,
05/15/58(d) |
75,000 | 82,313 | ||||||
Fairfax Financial Holdings Ltd. (Canada), Sr. Notes, 5.80%, 05/15/21(b) |
135,000 | 135,675 | ||||||
Hartford Financial Services Group Inc. (The), Jr. Unsec. Sub. Variable Rate Deb., 8.13%,
06/15/38(d) |
215,000 | 243,944 | ||||||
Liberty Mutual Group, Inc.,
Jr. Unsec. Gtd. Sub. Bonds,
7.80%, 03/15/37(b) |
599,000 | 622,960 | ||||||
Sr. Gtd. Notes,
5.00%, 06/01/21(b) |
60,000 | 59,298 | ||||||
Nationwide Mutual Insurance Co., Sub. Notes, 9.38%, 08/05/39(b) |
435,000 | 561,776 | ||||||
| 1,705,966 | ||||||||
Multi-Sector Holdings—0.33% |
||||||||
Reynolds Group Issuer Inc./LLC/Luxembourg S.A., Sr. Sec. Gtd. Notes, 7.13%,
04/15/19(b) |
200,000 | 209,250 | ||||||
Office Services & Supplies—0.26% |
||||||||
IKON Office Solutions, Inc., Sr. Unsec. Notes, 6.75%, 12/01/25 |
105,000 | 103,950 | ||||||
Interface Inc., Sr. Unsec. Gtd. Global Notes, 7.63%, 12/01/18 |
55,000 | 59,400 | ||||||
| 163,350 | ||||||||
Oil & Gas Drilling—0.24% |
||||||||
Precision Drilling Corp. (Canada), Sr. Unsec. Gtd. Notes, 6.63%, 11/15/20(b) |
145,000 | 149,894 | ||||||
Oil & Gas Equipment & Services—1.29% |
||||||||
Bristow Group, Inc., Sr. Unsec. Gtd. Global Notes, 7.50%, 09/15/17 |
220,000 | 232,375 | ||||||
Calfrac Holdings L.P., Sr. Unsec. Notes, 7.50%, 12/01/20(b) |
75,000 | 78,375 | ||||||
Cie Generale de Geophysique-Veritas (France), Sr. Unsec. Gtd. Global Notes, 7.50%, 05/15/15 |
7,000 | 7,175 | ||||||
Key Energy Services, Inc., Sr. Unsec. Gtd. Notes, 6.75%, 03/01/21 |
290,000 | 293,444 | ||||||
See accompanying notes which are an integral part of this schedule.
Invesco Van Kampen High Income Trust II
| Principal | ||||||||
| Amount | Value | |||||||
Oil & Gas Equipment & Services—(continued) |
||||||||
Oil States International, Inc., Sr. Gtd. Notes, 6.50%, 06/01/19(b) |
$ | 60,000 | $ | 60,337 | ||||
SESI, LLC, Sr. Gtd. Notes, 6.38%, 05/01/19(b) |
135,000 | 135,675 | ||||||
| 807,381 | ||||||||
Oil & Gas Exploration & Production—8.51% |
||||||||
Berry Petroleum Co., Sr. Unsec. Notes, 6.75%, 11/01/20 |
95,000 | 98,563 | ||||||
Brigham Exploration Co., Sr. Unsec. Gtd. Notes, 6.88%, 06/01/19(b) |
35,000 | 35,175 | ||||||
Chaparral Energy, Inc., Sr. Unsec. Gtd. Notes, 8.25%, 09/01/21(b) |
350,000 | 362,250 | ||||||
Chesapeake Energy Corp., Sr. Unsec. Gtd. Notes, 6.13%, 02/15/21 |
445,000 | 453,900 | ||||||
Cimarex Energy Co., Sr. Unsec. Gtd. Notes, 7.13%, 05/01/17 |
280,000 | 297,150 | ||||||
Concho Resources Inc.,
Sr. Unsec. Gtd. Notes,
7.00%, 01/15/21 |
65,000 | 68,250 | ||||||
6.50%, 01/15/22 |
85,000 | 85,850 | ||||||
Continental Resources, Inc.,
Sr. Unsec. Gtd. Global Notes,
8.25%, 10/01/19 |
130,000 | 143,488 | ||||||
7.38%, 10/01/20 |
180,000 | 193,275 | ||||||
7.13%, 04/01/21 |
80,000 | 84,700 | ||||||
EXCO Resources, Inc., Sr. Unsec. Gtd. Notes, 7.50%, 09/15/18 |
325,000 | 327,437 | ||||||
Forest Oil Corp., Sr. Unsec. Gtd. Global Notes, 7.25%, 06/15/19 |
305,000 | 315,294 | ||||||
Harvest Operations Corp. (Canada), Sr. Unsec. Gtd. Notes, 6.88%, 10/01/17(b) |
200,000 | 208,500 | ||||||
McMoRan Exploration Co., Sr. Unsec. Gtd. Notes, 11.88%, 11/15/14 |
430,000 | 466,550 | ||||||
Newfield Exploration Co., Sr. Unsec. Sub. Global Notes, 7.13%, 05/15/18 |
195,000 | 209,381 | ||||||
OGX Petroleo e Gas Participacoes S.A. (Brazil), Sr. Gtd. Notes, 8.50%, 06/01/18(b) |
205,000 | 206,489 | ||||||
Petrohawk Energy Corp.,
Sr. Unsec. Gtd. Global Notes,
7.25%, 08/15/18 |
400,000 | 419,000 | ||||||
Sr. Unsec. Gtd. Notes,
6.25%, 06/01/19(b) |
245,000 | 241,325 | ||||||
Pioneer Natural Resources Co., Sr. Unsec. Notes, 6.65%, 03/15/17 |
160,000 | 175,200 | ||||||
Plains Exploration & Production Co.,
Sr. Gtd. Notes,
6.63%, 05/01/21 |
130,000 | 130,325 | ||||||
Sr. Unsec. Gtd. Notes,
7.63%, 06/01/18 |
210,000 | 224,175 | ||||||
Range Resources Corp., Sr. Unsec. Gtd. Sub. Notes, 5.75%, 06/01/21 |
305,000 | 305,000 | ||||||
SM Energy Co., Sr. Unsec. Notes, 6.63%, 02/15/19(b) |
135,000 | 138,881 | ||||||
Whiting Petroleum Corp., Sr. Unsec. Gtd. Sub. Notes, 6.50%, 10/01/18 |
140,000 | 145,600 | ||||||
| 5,335,758 | ||||||||
Oil & Gas Refining & Marketing—1.20% |
||||||||
Tesoro Corp., Sr. Unsec. Gtd. Global Bonds, 6.50%, 06/01/17 |
195,000 | 201,581 | ||||||
United Refining Co., Sr. Sec. Gtd. Notes, 10.50%, 02/28/18(b) |
540,000 | 547,763 | ||||||
| 749,344 | ||||||||
Oil & Gas Storage & Transportation—2.95% |
||||||||
Chesapeake Midstream Partners L.P./CHKM Finance Corp., Sr. Gtd. Notes, 5.88%,
04/15/21(b) |
105,000 | 105,131 | ||||||
Copano Energy LLC/Copano Energy Finance Corp., Sr. Unsec. Gtd. Notes, 7.13%, 04/01/21 |
310,000 | 313,100 | ||||||
Inergy L.P./Inergy Finance Corp., Sr. Unsec. Gtd. Notes, 6.88%, 08/01/21(b) |
170,000 | 173,612 | ||||||
MarkWest Energy Partners L.P./MarkWest Energy Finance Corp.,
Sr. Unsec. Gtd. Notes,
6.75%, 11/01/20 |
95,000 | 97,969 | ||||||
6.50%, 08/15/21 |
50,000 | 50,750 | ||||||
Series B,
Sr. Unsec. Gtd. Global Notes,
8.75%, 04/15/18 |
330,000 | 366,300 | ||||||
Overseas Shipholding Group, Inc., Sr. Unsec. Notes, 8.13%, 03/30/18 |
275,000 | 267,781 | ||||||
Regency Energy Partners L.P./Regency Energy Finance Corp., Sr. Unsec. Gtd. Notes, 6.88%, 12/01/18 |
205,000 | 216,019 | ||||||
Targa Resources Partners L.P./Targa Resources Partners Finance Corp., Sr. Unsec. Gtd. Notes, 6.88%,
02/01/21(b) |
260,000 | 258,700 | ||||||
| 1,849,362 | ||||||||
Other Diversified Financial Services—0.82% |
||||||||
International Lease Finance Corp.,
Sr. Sec. Notes,
6.75%, 09/01/16(b) |
175,000 | 190,203 | ||||||
7.13%, 09/01/18(b) |
175,000 | 193,375 | ||||||
Sr. Unsec. Notes,
8.25%, 12/15/20 |
115,000 | 129,519 | ||||||
| 513,097 | ||||||||
See accompanying notes which are an integral part of this schedule.
Invesco Van Kampen High Income Trust II
| Principal | ||||||||
| Amount | Value | |||||||
Packaged Foods & Meats—0.57% |
||||||||
Chiquita Brands International, Inc., Sr. Unsec. Global Notes, 8.88%, 12/01/15 |
$ | 175,000 | $ | 180,687 | ||||
Del Monte Foods Co., Sr. Unsec. Gtd. Notes, 7.63%, 02/15/19(b) |
175,000 | 179,375 | ||||||
| 360,062 | ||||||||
Paper Packaging—0.12% |
||||||||
Cascades Inc. (Canada), Sr. Unsec. Gtd. Global Notes, 7.88%, 01/15/20 |
70,000 | 74,375 | ||||||
Paper Products—1.98% |
||||||||
Boise Cascade LLC, Sr. Unsec. Gtd. Sub. Global Notes, 7.13%, 10/15/14 |
465,000 | 463,838 | ||||||
Clearwater Paper Corp., Sr. Gtd. Notes, 7.13%, 11/01/18(b) |
210,000 | 219,450 | ||||||
Mercer International, Inc., Sr. Unsec. Gtd. Global Notes, 9.50%, 12/01/17 |
205,000 | 225,756 | ||||||
P.H. Glatfelter Co., Sr. Unsec. Gtd. Global Notes, 7.13%, 05/01/16 |
320,000 | 330,800 | ||||||
| 1,239,844 | ||||||||
Personal Products—0.21% |
||||||||
Elizabeth Arden Inc., Sr. Unsec. Global Notes, 7.38%, 03/15/21 |
35,000 | 36,838 | ||||||
NBTY Inc., Sr. Gtd. Notes, 9.00%, 10/01/18(b) |
90,000 | 96,975 | ||||||
| 133,813 | ||||||||
Pharmaceuticals—1.90% |
||||||||
Aptalis Pharma Inc., Sr. Unsec. Gtd. Global Notes, 12.75%, 03/01/16 |
255,000 | 283,050 | ||||||
Elan Finance PLC/Elan Finance Corp. (Ireland), Sr. Gtd. Notes, 8.75%, 10/15/16(b) |
145,000 | 155,875 | ||||||
Endo Pharmaceuticals Holdings Inc., Sr. Unsec. Gtd. Notes, 7.00%, 12/15/20(b) |
45,000 | 45,675 | ||||||
Mylan Inc., Sr. Unsec. Gtd. Notes, 6.00%, 11/15/18(b) |
435,000 | 449,137 | ||||||
Valeant Pharmaceuticals International,
Sr. Unsec. Gtd. Notes,
6.75%, 10/01/17(b) |
90,000 | 89,213 | ||||||
7.00%, 10/01/20(b) |
35,000 | 34,475 | ||||||
6.75%, 08/15/21(b) |
140,000 | 136,150 | ||||||
| 1,193,575 | ||||||||
Property & Casualty Insurance—0.33% |
||||||||
XL Group PLC (Ireland)-Series E, Jr. Sub. Variable Rate Global Pfd. Bonds, 6.50%,
12/29/49(d) |
220,000 | 209,275 | ||||||
Railroads—0.42% |
||||||||
Kansas City Southern de Mexico S.A. de C.V. (Mexico), |
||||||||
Sr. Unsec. Global Notes,
8.00%, 02/01/18 |
221,000 | 245,271 | ||||||
Sr. Unsec. Notes,
6.13%, 06/15/21(b) |
15,000 | 15,208 | ||||||
| 260,479 | ||||||||
Real Estate Services—0.36% |
||||||||
CB Richard Ellis Services Inc., Sr. Unsec. Gtd. Global Notes, 6.63%, 10/15/20 |
215,000 | 227,363 | ||||||
Regional Banks—3.77% |
||||||||
AmSouth Bancorp., Unsec. Sub. Putable Deb., 6.75%, 11/01/25(e) |
75,000 | 70,875 | ||||||
BB&T Capital Trust II, Jr. Unsec. Gtd. Sub. Global Notes, 6.75%, 06/07/36 |
170,000 | 178,745 | ||||||
CIT Group, Inc.,
Sec. Bonds,
7.00%, 05/01/17 |
750,000 | 754,219 | ||||||
Sec. Gtd. Notes,
6.63%, 04/01/18(b) |
395,000 | 423,390 | ||||||
Regions Financial Corp., Unsec. Sub. Notes, 7.38%, 12/10/37 |
415,000 | 404,625 | ||||||
Synovus Financial Corp., Unsec. Sub. Global Notes, 5.13%, 06/15/17 |
310,000 | 292,950 | ||||||
Zions Bancorp., Unsec. Sub. Notes, 6.00%, 09/15/15 |
230,000 | 238,050 | ||||||
| 2,362,854 | ||||||||
Research & Consulting Services—0.41% |
||||||||
FTI Consulting, Inc., Sr. Unsec. Gtd. Notes, 6.75%, 10/01/20(b) |
250,000 | 256,250 | ||||||
Semiconductor Equipment—0.96% |
||||||||
Amkor Technology Inc.,
Sr. Unsec. Global Notes,
7.38%, 05/01/18 |
400,000 | 420,000 | ||||||
Sr. Unsec. Notes,
6.63%, 06/01/21(b) |
130,000 | 128,375 | ||||||
Sensata Technologies B.V. (Netherlands), Sec. Gtd. Notes, 6.50%, 05/15/19(b) |
50,000 | 51,178 | ||||||
| 599,553 | ||||||||
Semiconductors—1.54% |
||||||||
Freescale Semiconductor Inc.,
Sr. Sec. Gtd. Notes,
9.25%, 04/15/18(b) |
361,000 | 403,417 | ||||||
Sr. Unsec. Gtd. Notes,
10.75%, 08/01/20(b) |
45,000 | 51,638 | ||||||
Sr. Unsec. Gtd. PIK Global Notes,
9.13%, 12/15/14 |
490,000 | 513,275 | ||||||
| 968,330 | ||||||||
See accompanying notes which are an integral part of this schedule.
Invesco Van Kampen High Income Trust II
| Principal | ||||||||
| Amount | Value | |||||||
Specialized Consumer Services—0.07% |
||||||||
Carriage Services Inc., Sr. Unsec. Gtd. Global Notes, 7.88%, 01/15/15 |
$ | 45,000 | $ | 45,900 | ||||
Specialized REIT’s—1.23% |
||||||||
Host Hotels & Resorts L.P.,
Sr. Gtd. Global Notes,
6.00%, 11/01/20 |
205,000 | 205,512 | ||||||
Sr. Notes,
5.88%, 06/15/19(b) |
50,000 | 50,313 | ||||||
MPT Operating Partnership L.P./MPT Finance Corp., Sr. Gtd. Notes, 6.88%, 05/01/21(b) |
140,000 | 141,937 | ||||||
Omega Healthcare Investors Inc., Sr. Unsec. Gtd. Notes, 6.75%, 10/15/22(b) |
155,000 | 155,000 | ||||||
Sabra Health Care L.P./Sabra Capital Corp., Sr. Unsec. Gtd. Global Notes, 8.13%, 11/01/18 |
210,000 | 216,825 | ||||||
| 769,587 | ||||||||
Specialty Chemicals—1.16% |
||||||||
Ferro Corp., Sr. Unsec. Notes, 7.88%, 08/15/18 |
270,000 | 288,225 | ||||||
Nalco Co., Sr. Unsec. Gtd. Notes, 6.63%, 01/15/19(b) |
70,000 | 72,800 | ||||||
PolyOne Corp., Sr. Unsec. Notes, 7.38%, 09/15/20 |
340,000 | 365,925 | ||||||
| 726,950 | ||||||||
Specialty Stores—0.28% |
||||||||
Michaels Stores, Inc., Sr. Unsec. Gtd. Notes, 7.75%, 11/01/18(b) |
170,000 | 175,525 | ||||||
Steel—1.34% |
||||||||
AK Steel Corp., Sr. Unsec. Gtd. Notes, 7.63%, 05/15/20 |
285,000 | 299,250 | ||||||
APERAM (Luxembourg), Sr. Unsec. Notes, 7.38%, 04/01/16(b) |
150,000 | 159,518 | ||||||
FMG Resources Ltd. (Australia), Sr. Unsec. Gtd. Notes, 6.38%, 02/01/16(b) |
180,000 | 184,731 | ||||||
United States Steel Corp.,
Sr. Unsec. Notes,
7.00%, 02/01/18 |
140,000 | 145,600 | ||||||
7.38%, 04/01/20 |
50,000 | 52,625 | ||||||
| 841,724 | ||||||||
Systems Software—2.02% |
||||||||
Allen Systems Group, Inc., Sec. Gtd. Notes, 10.50%, 11/15/16(b) |
600,000 | 621,000 | ||||||
Vangent, Inc., Sr. Unsec. Gtd. Sub. Global Notes, 9.63%, 02/15/15 |
635,000 | 644,525 | ||||||
| 1,265,525 | ||||||||
Textiles—1.00% |
||||||||
Levi Strauss & Co., Sr. Unsec. Global Notes, 7.63%, 05/15/20 |
620,000 | 629,300 | ||||||
Tires & Rubber—0.73% |
||||||||
Cooper Tire & Rubber Co., Sr. Unsec. Notes, 8.00%, 12/15/19 |
425,000 | 455,812 | ||||||
Trading Companies & Distributors—1.14% |
||||||||
H&E Equipment Services, Inc., Sr. Unsec. Gtd. Global Notes, 8.38%, 07/15/16 |
485,000 | 505,312 | ||||||
Interline Brands, Inc., Sr. Unsec. Gtd. Global Notes, 7.00%, 11/15/18 |
100,000 | 103,000 | ||||||
RSC Equipment Rental Inc./RSC Holdings III LLC, Sr. Unsec. Gtd. Global Notes, 8.25%, 02/01/21 |
105,000 | 109,331 | ||||||
| 717,643 | ||||||||
Trucking—1.92% |
||||||||
Avis Budget Car Rental LLC/Avis Budget Finance Inc., Sr. Unsec. Gtd. Global Notes, 8.25%, 01/15/19 |
420,000 | 437,850 | ||||||
Hertz Corp. (The),
Sr. Unsec. Gtd. Notes,
7.50%, 10/15/18(b) |
175,000 | 182,437 | ||||||
6.75%, 04/15/19(b) |
130,000 | 131,950 | ||||||
7.38%, 01/15/21(b) |
340,000 | 353,600 | ||||||
Sunstate Equipment Co., LLC, Sr. Unsec. Notes, 10.50%, 04/01/13(b) |
100,000 | 99,500 | ||||||
| 1,205,337 | ||||||||
Wireless Telecommunication Services—7.77% |
||||||||
Clearwire Communications LLC/Clearwire Finance, Inc., Sr. Sec. Gtd. Notes, 12.00%,
12/01/15(b) |
590,000 | 649,737 | ||||||
Cricket Communications, Inc.,
Sr. Notes,
7.75%, 10/15/20(b) |
105,000 | 104,213 | ||||||
Sr. Sec. Gtd. Global Notes,
7.75%, 05/15/16 |
305,000 | 324,444 | ||||||
Sr. Unsec. Gtd. Global Notes,
7.75%, 10/15/20 |
290,000 | 287,825 | ||||||
Digicel Group Ltd. (Bermuda), Sr. Unsec. Notes, 8.88%, 01/15/15(b) |
100,000 | 103,375 | ||||||
Digicel Ltd. (Bermuda), Sr. Unsec. Notes, 8.25%, 09/01/17(b) |
355,000 | 376,300 | ||||||
MetroPCS Wireless, Inc.,
Sr. Unsec. Gtd. Notes,
7.88%, 09/01/18 |
170,000 | 183,069 | ||||||
6.63%, 11/15/20 |
255,000 | 255,637 | ||||||
SBA Telecommunications, Inc., Sr. Unsec. Gtd. Global Notes, 8.25%, 08/15/19 |
450,000 | 494,437 | ||||||
Sprint Capital Corp., Sr. Unsec. Gtd. Global Notes, 6.90%, 05/01/19 |
885,000 | 928,144 | ||||||
See accompanying notes which are an integral part of this schedule.
Invesco Van Kampen High Income Trust II
| Principal | ||||||||||||
| Amount | Value | |||||||||||
Wireless Telecommunication Services—(continued) |
||||||||||||
Sprint Nextel Corp., Sr. Unsec. Notes, 8.38%, 08/15/17 |
$ | 400,000 | $ | 452,500 | ||||||||
VimpelCom (Ireland), Sec. Notes, 6.49%, 02/02/16(b) |
200,000 | 210,250 | ||||||||||
Wind Acquisition Finance S.A. (Luxembourg),
Sr. Sec. Gtd. Notes,
11.75%, 07/15/17(b) |
250,000 | 291,250 | ||||||||||
7.25%, 02/15/18(b) |
200,000 | 213,000 | ||||||||||
| 4,874,181 | ||||||||||||
Total U.S. Dollar Denominated Bonds & Notes (Cost $71,599,550) |
74,754,505 | |||||||||||
Non-U.S. Dollar Denominated Bonds & Notes—16.24% |
||||||||||||
Belgium—0.59% |
||||||||||||
Ontex IV S.A. (Belgium), Sr. Unsec. Gtd. Notes, 9.00%, 04/15/19(b) |
EUR | 250,000 | 366,020 | |||||||||
Canada—0.33% |
||||||||||||
Gateway Casinos & Entertainment Ltd. (Canada), Sec. Gtd. Notes, 8.88%, 11/15/17(b) |
CAD | 190,000 | 208,110 | |||||||||
Croatia—0.51% |
||||||||||||
Agrokor D.D. (Croatia), Sr. Unsec. Gtd. Medium-Term Euro Notes, 10.00%, 12/07/16 |
EUR | 210,000 | 321,055 | |||||||||
Czech Republic—0.25% |
||||||||||||
CET 21 spol sro (Czech Republic), Sr. Sec. Notes, 9.00%, 11/01/17(b) |
EUR | 100,000 | 157,919 | |||||||||
Germany—2.08% |
||||||||||||
Hapag-Lloyd AG (Germany), Sr. Unsec. Gtd. Notes, 9.00%, 10/15/15(b) |
EUR | 200,000 | 296,054 | |||||||||
Kabel BW Erste Beteiligungs GmbH (Germany), Sr. Sec. Gtd. Notes, 7.50%, 03/15/19(b) |
EUR | 100,000 | 150,545 | |||||||||
KION Finance S.A. (Germany), Sr. Sec. Gtd Notes, 7.88%, 04/15/18(b) |
EUR | 340,000 | 479,441 | |||||||||
KUKA A.G. (Germany)—REGS, Sr. Sec. Gtd. Sub. Medium-Term Euro Notes, 8.75%, 11/15/17 |
EUR | 145,000 | 225,332 | |||||||||
Styrolution GmbH (Germany)—REGS, Sr. Sec. Euro Notes, 7.63%, 05/15/16 |
EUR | 105,000 | 151,840 | |||||||||
| 1,303,212 | ||||||||||||
Ireland—2.59% |
||||||||||||
Ardagh Packaging Finance PLC (Ireland), Sr. Unsec. Gtd. Notes, 9.25%, 10/15/20(b) |
EUR | 405,000 | 621,362 | |||||||||
Bord Gais Eireann (Ireland), Sr. Unsec. Medium-Term Euro Notes, 5.75%, 06/16/14 |
EUR | 250,000 | 351,716 | |||||||||
Nara Cable Funding Ltd. (Ireland), Sr. Sec. Notes, 8.88%, 12/01/18(b) |
EUR | 440,000 | 650,527 | |||||||||
| 1,623,605 | ||||||||||||
Luxembourg—3.32% |
||||||||||||
Boardriders S.A. (Luxembourg), Sr. Notes, 8.88%, 12/15/17(b) |
EUR | 100,000 | 154,682 | |||||||||
Calcipar S.A. (Luxembourg)-REGS, Sr. Unsec. Gtd. Floating Rate Euro Bonds, 2.43%,
07/01/14(d) |
EUR | 80,000 | 110,671 | |||||||||
Cirsa Funding Luxembourg S.A. (Luxembourg), Sr. Unsec. Gtd. Notes, 8.75%, 05/15/18(b) |
EUR | 130,000 | 195,241 | |||||||||
Codere Finance Luxembourg S.A. (Luxembourg), Sr. Sec. Gtd. Notes, 8.25%, 06/15/15(b) |
EUR | 200,000 | 294,255 | |||||||||
ConvaTec Healthcare S.A. (Luxembourg),
Sr. Sec. Gtd. Notes,
7.38%, 12/15/17(b) |
EUR | 100,000 | 148,926 | |||||||||
-REGS,
Sr. Unsec. Gtd. Euro Notes,
10.88%, 12/15/18 |
EUR | 100,000 | 153,602 | |||||||||
Mark IV Europe Lux SCA/Mark IV USA SCA (Luxembourg), Sr. Sec. Gtd. Notes, 8.88%,
12/15/17(b) |
EUR | 300,000 | 461,887 | |||||||||
TMD Friction Finance S.A. (Luxembourg)-REGS, Sr. Sec. Gtd. Euro Notes, 10.75%, 05/15/17 |
EUR | 260,000 | 414,144 | |||||||||
Xefin Lux SCA (Luxembourg), Sr. Sec. Notes, 8.00%, 06/01/18(b) |
EUR | 100,000 | 145,239 | |||||||||
| 2,078,647 | ||||||||||||
Netherlands—1.86% |
||||||||||||
Elster Finance BV (Netherlands), REGS. Sr. Unsec. Gtd. Medium-Term Euro Notes, 6.25%, 04/15/18 |
EUR | 220,000 | 317,349 | |||||||||
Goodyear Dunlop Tires Europe B.V. (Netherlands), Sr. Gtd. Notes, 6.75%, 04/15/19(b) |
EUR | 300,000 | 441,383 | |||||||||
Polish Television Holding B.V. (Netherlands)-REGS, Sr. Sec. Medium-Term Euro Notes, 11.25%,
05/15/17(f) |
EUR | 95,000 | 146,264 | |||||||||
Ziggo Bond Co. B.V. (Netherlands), Sr. Sec. Gtd. Notes, 8.00%, 05/15/18(b) |
EUR | 175,000 | 263,454 | |||||||||
| 1,168,450 | ||||||||||||
See accompanying notes which are an integral part of this schedule.
Invesco Van Kampen High Income Trust II
| Principal | ||||||||||||
| Amount | Value | |||||||||||
Sweden—0.36% |
||||||||||||
TVN Finance Corp. II AB (Sweden)-REGS, Sr. Unsec. Gtd. Euro Notes, 10.75%, 11/15/17 |
EUR | 140,000 | $ | 227,130 | ||||||||
United Kingdom—4.02% |
||||||||||||
Bakkavor Finance 2 PLC (United Kingdom)—REGS, Sr. Sec. Gtd. Euro Notes, 8.25%, 02/15/18 |
GBP | 200,000 | 302,662 | |||||||||
Exova Ltd. (United Kingdom)—REGS, Sr. Unsec. Gtd. Euro Notes, 10.50%, 10/15/18 |
GBP | 200,000 | 345,018 | |||||||||
ITV PLC (United Kingdom)-Series 2006-1 Tranche 1, Unsec. Gtd. Unsub. Medium-Term Euro Notes, 7.38%,
01/05/17 |
GBP | 70,000 | 120,779 | |||||||||
Kerling PLC (United Kingdom), Sr. Sec. Gtd. Notes, 10.63%, 02/01/17(b) |
EUR | 180,000 | 282,312 | |||||||||
Odeon & UCI Finco PLC (United Kingdom),
-REGS,
Sr. Sec. Floating Rate Euro Notes,
6.44%, 08/01/18(d) |
EUR | 285,000 | 402,910 | |||||||||
Sr. Sec. Medium-Term Euro Notes,
9.00%, 08/01/18 |
GBP | 200,000 | 330,704 | |||||||||
Pipe Holdings PLC (United Kingdom)-REGS, Sr. Sec. Euro Bonds, 9.50%, 11/01/15 |
GBP | 200,000 | 334,737 | |||||||||
R&R Ice Cream PLC (United Kingdom), Sr. Sec. Gtd. Notes, 8.38%, 11/15/17(b) |
EUR | 275,000 | 397,676 | |||||||||
| 2,516,798 | ||||||||||||
United States—0.33% |
||||||||||||
CEDC Finance Corp. International Inc., Sr. Sec. Gtd. Notes, 8.88%, 12/01/16(b) |
EUR | 155,000 | 208,533 | |||||||||
Total Non-U.S. Dollar Denominated Bonds & Notes (Cost $9,675,680) |
10,179,479 | |||||||||||
| Shares | Value | |||||||
Preferred Stocks—1.46%(a) |
||||||||
Diversified Banks—0.44% |
||||||||
Ally Financial, Inc. Series G, 7.00% Pfd.(b) |
287 | 277,251 | ||||||
Industrial REIT’s—0.12% |
||||||||
DuPont Fabros Technology, Inc. Series B, 7.63% Pfd. |
2,930 | 73,250 | ||||||
Regional Banks—0.90% |
||||||||
Zions Bancorp. Series C, 9.50% Pfd. |
21,400 | 565,602 | ||||||
Total Preferred Stocks (Cost $739,806) |
916,103 | |||||||
Common Stocks & Other Equity Interests—0.33%(a) |
||||||||
Apparel, Accessories & Luxury Goods—0.00% |
||||||||
Hosiery Corp. of America, Inc. Class A(g) |
1,000 | 0 | ||||||
Automobile Manufacturers—0.33% |
||||||||
General Motors Co. (g) |
3,084 | 98,102 | ||||||
General Motors Co. CW16 Wts. (g) |
2,804 | 63,623 | ||||||
General Motors Co. CW19 Wts. (g) |
2,804 | 46,742 | ||||||
| 208,467 | ||||||||
Total Common Stocks & Other Equity Interests (Cost $248,850) |
208,467 | |||||||
Money Market Funds—3.05% |
||||||||
Liquid Assets Portfolio — Institutional Class (h) |
957,267 | 957,267 | ||||||
Premier Portfolio — Institutional Class (h) |
957,267 | 957,267 | ||||||
Total Money Market Funds (Cost $1,914,534) |
1,914,534 | |||||||
TOTAL
INVESTMENTS—140.31% (Cost $84,178,420) |
87,973,088 | |||||||
OTHER ASSETS LESS LIABILITIES—1.16% |
724,979 | |||||||
BORROWINGS—(41.47)% |
(26,000,000 | ) | ||||||
NET ASSETS—100.00% |
$ | 62,698,067 | ||||||
| Investment Abbreviations: | ||
CAD
|
— Canadian Dollar | |
Ctfs.
|
— Certificates | |
Deb.
|
— Debentures | |
EUR
|
— Euro | |
GBP
|
— British Pound | |
Gtd.
|
— Guaranteed | |
Jr.
|
— Junior | |
Pfd.
|
— Preferred | |
PIK
|
— Payment in Kind | |
REGS
|
— Regulation S | |
REIT
|
— Real Estate Investment Trust | |
Sec.
|
— Secured | |
Sr.
|
— Senior | |
Sub.
|
— Subordinated | |
Unsec.
|
— Unsecured | |
Unsub.
|
— Unsubordinated | |
Wts.
|
— Warrants | |
Notes to Schedule of Investments:
| (a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
See accompanying notes which are an integral part of this schedule.
Invesco Van Kampen High Income Trust II
| (b) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at May 31, 2011 was $36,661,493, which represented 58.47% of the Trust’s Net Assets. | |
| (c) | Defaulted security. Currently, the issuer is partially or fully in default with respect to interest payments. The aggregate value of these securities at May 31, 2011 was $27,825, which represented 0.04% of the Trust’s Net Assets. | |
| (d) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on May 31, 2011. | |
| (e) | Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put. | |
| (f) | Step coupon bond. The interest rate represents the coupon rate at which the bond will accrue at a specified future date. | |
| (g) | Non-income producing security. | |
| (h) | The money market fund and the Trust are affiliated by having the same investment adviser. | |
| (i) | Interest payments have been suspended under European Union agreement for 24 months beginning April 30, 2010. |
See accompanying notes which are an integral part of this schedule.
Invesco Van Kampen High Income Trust II
Notes to Quarterly Schedule of Portfolio Holdings
May 31, 2011
(Unaudited)
May 31, 2011
(Unaudited)
NOTE 1 — Significant Accounting Policies
| A. | Security Valuations — Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange (except convertible bonds) is valued at its last
sales price or official closing price as of the close of the customary trading session on the
exchange where the security is principally traded, or lacking any sales or official closing
price on a particular day, the security may be valued at the closing bid price on that day.
Securities traded in the over-the-counter market are valued based on prices furnished by
independent pricing services or market makers. When such securities are valued by an
independent pricing service they may be considered fair valued. Futures contracts are valued at
the final settlement price set by an exchange on which they are principally traded. Listed
options are valued at the mean between the last bid and ask prices from the exchange on which
they are principally traded. Options not listed on an exchange are valued by an independent
source at the mean between the last bid and ask prices. For purposes of determining net asset
value per share, futures and option contracts generally are valued 15 minutes after the close of
the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on
an exchange are valued at the end of day net asset value per share. Investments in open-end and
closed-end registered investment companies that trade on an exchange are valued at the last
sales price or official closing price as of the close of the customary trading session on the
exchange where the security is principally traded.
Debt obligations (including convertible bonds) and unlisted equities are fair valued using
an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the
pricing service may be determined without exclusive reliance on quoted prices, and may reflect
appropriate factors such as institution-size trading in similar groups of securities,
developments related to specific securities, dividend rate, yield, quality, type of issue,
coupon rate, maturity, individual trading characteristics and other market data. Short-term
obligations, including commercial paper, having 60 days or less to maturity are recorded at
amortized cost which approximates value. Debt securities are subject to interest rate and
credit risks. In addition, all debt securities involve some risk of default with respect to
interest and/or principal payments.
Foreign securities (including foreign exchange contracts) are converted into U.S. dollar
amounts using the applicable exchange rates as of the close of the NYSE. If market quotations
are available and reliable for foreign exchange traded equity securities, the securities will be
valued at the market quotations. Because trading hours for certain foreign securities end
before the close of the NYSE, closing market quotations may become unreliable. If between the
time trading ends on a particular security and the close of the customary trading session on the
NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair
value the security. If the event is likely to have affected the closing price of the security,
the security will be valued at fair value in good faith using procedures approved by the Board
of Trustees. Adjustments to closing prices to reflect fair value may also be based on a
screening process of an independent pricing service to indicate the degree of certainty, based
on historical data, that the closing price in the principal market where a foreign security
trade is not the current value as of the close of the NYSE. Foreign securities meeting the
approved degree of certainty that the price is not reflective of current value will be priced at
the indication of fair value from the independent pricing service. Multiple factors may be
considered by the independent pricing service in determining adjustments to reflect fair value
and may include information relating to sector indices, American Depositary Receipts and
domestic and foreign index futures. Foreign securities may have additional risks including
exchange rate changes, potential for sharply devalued currencies and high inflation, political
and economical upheaval, the relative lack of issuer information, relatively low market
liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be
valued based upon quotes furnished by independent sources. The last bid price may be used to
value equity securities. The mean between the last bid and asked prices is used to value debt
obligations, including Corporate Loans.
Securities for which market quotations are not readily available or are unreliable are
valued at fair value as determined in good faith by or under the supervision of the Trust’s
officers following procedures approved by the Board of Trustees. Issuer specific events, market
trends, bid/ask quotes of brokers and information providers and other market data may be
reviewed in the course of making a good faith determination of a security’s fair value.
Valuations change in response to many factors including the historical and prospective
earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest
rates, investor perceptions and market liquidity.
Invesco Van Kampen High Income Trust II
Because of the inherent uncertainties of valuation, the values reflected in the
financial statements may materially differ from the value received upon actual sale of those
investments.
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes. |
The Trust may periodically participate in litigation related to
Trust investments. As such, the Trust may receive proceeds from
litigation settlements. Any proceeds received are included in the
Statement of Operations as realized gain (loss) for investments no
longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an
increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of
securities. Such transaction costs are included in the determination of net realized and
unrealized gain (loss) from investment securities reported in the Statement of Operations and
the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on
securities per share in the Financial Highlights. Transaction costs are included in the
calculation of the Trust’s net asset value and, accordingly, they reduce the Trust’s total
returns. These transaction costs are not considered operating expenses and are not reflected in
net investment income reported in the Statement of Operations and Statement of Changes in Net
Assets, or the net investment income per share and ratios of expenses and net investment income
reported in the Financial Highlights, nor are they limited by any expense limitation
arrangements between the Trust and the investment adviser.
| C. | Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. | |
| D. | Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Trust does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Trust’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Trust may invest in foreign securities which may be subject to foreign taxes on income,
gains on investments or currency repatriation, a portion of which may be recoverable.
| E. | Foreign Currency Contracts — The Trust may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Trust may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Trust owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities. |
Invesco Van Kampen High Income Trust II
NOTE 2 — Additional Valuation Information
Generally Accepted Accounting Principles (“GAAP”) defines fair value as the price that would be
received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date, under current market conditions. GAAP establishes a
hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily
available unadjusted quoted prices in an active market for identical assets (Level 1) and the
lowest priority to significant unobservable inputs (Level 3) generally when market prices are not
readily available or are unreliable. Based on the valuation inputs, the securities or other
investments are tiered into one of three levels. Changes in valuation methods may result in
transfers in or out of an investment’s assigned level:
| Level 1 — | Prices are determined using quoted prices in an active market for identical assets. | ||
| Level 2 — | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. | ||
| Level 3 — | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Trust’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of May 31, 2011. The
level assigned to the securities valuations may not be an indication of the risk or liquidity
associated with investing in those securities. Because of the inherent uncertainties of valuation,
the values reflected in the financial statements may materially differ from the value received upon
actual sale of those investments.
During the three months ended May 31, 2011, there were no significant transfers between
investment levels.
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Corporate Bonds |
$ | — | $ | 84,933,984 | $ | — | $ | 84,933,984 | ||||||||
Equity Securities |
2,761,853 | 277,251 | — | 3,039,104 | ||||||||||||
Foreign Currency Contracts* |
— | 113,417 | — | 113,417 | ||||||||||||
Total Investments |
$ | 2,761,853 | $ | 85,324,652 | $ | — | $ | 88,086,505 | ||||||||
| * | Unrealized appreciation (depreciation). |
NOTE 3 — Derivative Instruments
| Open Foreign Currency Contracts | ||||||||||||||||||||
| Settlement | Contract to | Notional | Unrealized | |||||||||||||||||
| Date | Counterparty | Deliver | Receive | Value | Appreciation | |||||||||||||||
8/9/2011 |
Bank of Montreal | EUR 5,330,000 | USD 7,795,306 | $(7,655,925) | $ | 139,381 | ||||||||||||||
| Unrealized | ||||||||||||||||||||
| Settlement | Contract to | Notional | Appreciation | |||||||||||||||||
| Date | Counterparty | Deliver | Receive | Value | (Depreciation) | |||||||||||||||
8/9/2011 |
Bank of Montreal | EUR | 160,000 | USD | 225,725 | $ | (229,821 | ) | $ | (4,096 | ) | |||||||||
8/9/2011 |
Bank of Montreal | EUR | 200,000 | USD | 282,657 | (287,277 | ) | (4,620 | ) | |||||||||||
6/2/2011 |
RBC Dain Rausch | GBP | 51,300 | USD | 84,322 | (84,382 | ) | (60 | ) | |||||||||||
6/8/2011 |
RBC Dain Rausch | GBP | 605,000 | USD | 981,587 | (995,058 | ) | (13,471 | ) | |||||||||||
8/19/2011 |
RBC Dain Rausch | GBP | 189,000 | USD | 306,851 | (310,568 | ) | (3,717 | ) | |||||||||||
| $ | (1,907,106 | ) | $ | (25,964 | ) | |||||||||||||||
Total open foreign currency contracts |
$ | (9,563,031 | ) | $ | 113,417 | |||||||||||||||
Invesco Van Kampen High Income Trust II
Currency Abbreviations:
EUR — Euro
GBP — British Pound Sterling
USD — U.S. Dollar
NOTE 4 — Investment Securities
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury
obligations and money market funds, if any) purchased and sold by the Trust during the three months
ended May 31, 2011 was $24,123,282 and $24,630,711 respectively. Cost of investments on
a tax basis includes the adjustments for financial reporting purposes as of the most recently
completed Federal income tax reporting period-end.
Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities |
$ | 4,002,526 | ||
Aggregate unrealized (depreciation) of investment securities |
(330,642 | ) | ||
Net unrealized appreciation of investment securities |
$ | 3,671,884 | ||
Cost of investments for tax purposes is $84,301,204. |
||||
Invesco Van Kampen High Income Trust II
Item 2. Controls and Procedures.
| (a) | As of June 10, 2011, an evaluation was performed under the supervision and with the participation of the officers of the Registrant, including the Principal Executive Officer (“PEO”) and Principal Financial Officer (“PFO”), to assess the effectiveness of the Registrant’s disclosure controls and procedures, as that term is defined in Rule 30a-3(c) under the Investment Company Act of 1940 (“Act”), as amended. Based on that evaluation, the Registrant’s officers, including the PEO and PFO, concluded that, as of June 10, 2011, the Registrant’s disclosure controls and procedures were reasonably designed so as to ensure: (1) that information required to be disclosed by the Registrant on Form N-Q is recorded, processed, summarized and reported within the time periods specified by the rules and forms of the Securities and Exchange Commission; and (2) that material information relating to the Registrant is made known to the PEO and PFO as appropriate to allow timely decisions regarding required disclosure. | ||
| (b) | There have been no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the Registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
Item 3. Exhibits.
| Certifications of PEO and PFO as required by Rule 30a-2(a) under the Investment Company Act of 1940. |
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: Invesco Van Kampen High Income Trust II
| By: | /s/ Colin Meadows | |||
| Colin Meadows | ||||
| Principal Executive Officer | ||||
Date: July 29, 2011
Pursuant to the requirements of the Securities and Exchange Act of 1934 and the Investment Company
Act of 1940, this report has been signed below by the following persons on behalf of the Registrant
and in the capacities and on the dates indicated.
| By: | /s/ Colin Meadows | |||
| Colin Meadows | ||||
| Principal Executive Officer | ||||
Date: July 29, 2011
| By: | /s/ Sheri Morris | |||
| Sheri Morris | ||||
| Principal Financial Officer | ||||
Date: July 29, 2011
EXHIBIT INDEX
Certifications of Principal Executive Officer (“PEO”) and Principal Financial Officer (“PFO”) as
required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended.