UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF

REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-4841

MFS MUNICIPAL INCOME TRUST

(Exact name of registrant as specified in charter)

500 Boylston Street, Boston, Massachusetts 02116

(Address of principal executive offices) (Zip code)

Susan S. Newton

Massachusetts Financial Services Company

500 Boylston Street

Boston, Massachusetts 02116

(Name and address of agents for service)

Registrant’s telephone number, including area code: (617) 954-5000

Date of fiscal year end: October 31

Date of reporting period: July 31, 2012

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ITEM 1.

SCHEDULE OF INVESTMENTS.

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QUARTERLY REPORT

July 31, 2012

 

 

MFS® MUNICIPAL INCOME TRUST

 

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PORTFOLIO OF INVESTMENTS

7/31/12 (unaudited)

The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.

 

Issuer		Shares/Par				Value ($)
Municipal Bonds - 139.3%
Airport Revenue - 3.2%
Chicago, IL, O’Hare International Airport Rev. (Third Lien Passenger Facility), “B”, AGM, 5.75%, 2022		$	3,000,000			$	3,176,880
Dallas Fort Worth, TX, International Airport Rev., “D”, 5%, 2038			1,560,000				1,688,248
Houston, TX, Airport System Rev., “B”, 5%, 2026			265,000				310,689
Houston, TX, Airport System Rev., Subordinate Lien, “A”, 5%, 2031			255,000				286,340
Miami-Dade County, FL, Aviation Rev., “B”, AGM, 5%, 2035			1,365,000				1,509,199
Port Authority NY & NJ, Special Obligation Rev. (JFK International Air Terminal LLC), 6%, 2036			485,000				557,541
Port Authority NY & NJ, Special Obligation Rev. (JFK International Air Terminal LLC), 6%, 2042			550,000				631,422
San Jose, CA, Airport Rev., “A-2”, 5.25%, 2034			1,215,000				1,356,086
						$	9,516,405
General Obligations - General Purpose - 4.5%
Chicago, IL, Metropolitan Water Reclamation District-Greater Chicago, “C”, 5%, 2030		$	1,260,000			$	1,494,083
Commonwealth of Puerto Rico, Public Improvement, “A”, 5.5%, 2039			2,620,000				2,769,550
Commonwealth of Puerto Rico, Public Improvement, “B”, 6.5%, 2037			495,000				567,448
Luzerne County, PA, AGM, 6.75%, 2023			865,000				1,027,015
Puerto Rico Public Buildings Authority Rev., Guaranteed (Government Facilities), “F”, 5.25%, 2024			2,500,000				2,707,325
State of California, 5.25%, 2028			660,000				780,476
State of California, 5.25%, 2030			1,560,000				1,807,510
State of California, 5.25%, 2035			1,285,000				1,467,933
State of California, 5%, 2041			455,000				496,519
State of Hawaii, “DZ”, 5%, 2031			335,000				400,281
						$	13,518,140
General Obligations - Improvement - 0.2%
Guam Government, “A”, 7%, 2039		$	170,000			$	192,075
New Orleans, LA, 5%, 2030			85,000				95,418
New Orleans, LA, 5%, 2031			155,000				173,146
						$	460,639
General Obligations - Schools - 0.5%
Beverly Hills, CA, Unified School District (Election of 2008), Capital Appreciation, 0%, 2031		$	525,000			$	242,414
Chicago, IL, Board of Education, “A”, 5%, 2041			170,000				187,009
Los Angeles, CA, Unified School District, “D”, 5%, 2034			180,000				203,634
Merced, CA, Union High School District, Capital Appreciation, “A”, ASSD GTY, 0%, 2030			145,000				62,521
Royse City, TX, Independent School District, School Building, Capital Appreciation, PSF, 0%, 2027			955,000				486,687
Royse City, TX, Independent School District, School Building, Capital Appreciation, PSF, 0%, 2029			965,000				440,243
						$	1,622,508
Healthcare Revenue - Hospitals - 31.0%
Alexander City, AL, Special Care Facilities Financing Authority Medical Facilities Rev., “A” (Russell Hospital Corp.), 5.75%, 2036		$	600,000			$	616,800
Allegheny County, PA, Hospital Development Authority Rev. (West Penn Allegheny Health), “A”, 5%, 2028			1,905,000				1,632,318
Allegheny County, PA, Hospital Development Authority Rev. (West Penn Allegheny Health), “A”, 5.375%, 2040			1,055,000				858,169
Athens County, OH, Hospital Facilities Rev. (O’Bleness Memorial Hospital), “A”, 7.125%, 2033			1,500,000				1,519,425
Burleigh County, ND, Health Care Rev. (St. Alexius Medical Center), “A”, 5%, 2038			380,000				410,829
Butler County, OH, Hospital Facilities Rev. (UC Health), 5.75%, 2040			260,000				286,486
California Health Facilities Financing Authority Rev. (St. Joseph Health System), “A”, 5.75%, 2039			650,000				745,940
California Health Facilities Financing Authority Rev. (Sutter Health), “B”, 5.875%, 2031			1,295,000				1,543,731
California Statewide Communities Development Authority Rev. (Kaiser Permanente), “A”, 5%, 2042			590,000				646,776
Chautauqua County, NY, Capital Resource Corp., Rev. (Women’s Christian Assn.), “A”, 8%, 2030			1,060,000				1,156,407
Citrus County, FL, Hospital Development Authority Rev. (Citrus Memorial Hospital), 6.25%, 2023			700,000				703,934
Cullman County, AL, Health Care Authority (Cullman Regional Medical Center), “A”, 6.75%, 2029			865,000				935,627
Dauphin County, PA, General Authority Health System Rev. (Pinnacle Health System), “A”, 5%, 2042			670,000				721,148

 

1

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Portfolio of Investments (unaudited) – continued

 

Issuer		Shares/Par				Value ($)
Municipal Bonds - continued
Healthcare Revenue - Hospitals - continued
DeKalb County, GA, Hospital Authority Rev. (DeKalb Medical Center, Inc.), 6.125%, 2040		$	1,150,000			$	1,290,231
Escambia County, FL, Health Facilities Authority (Baptist Hospital, Inc.), “A”, 6%, 2036			615,000				695,178
Fruita, CO, Rev. (Family Health West Project), 7%, 2018			230,000				254,656
Fruita, CO, Rev. (Family Health West Project), 8%, 2043			1,310,000				1,432,498
Gallia County, OH, Hospital Facilities Rev. (Holzer Health Systems), “A”, 8%, 2042			1,860,000				2,068,543
Glasgow, KY, Healthcare Rev. (TJ Samson Community Hospital), 6.375%, 2035			570,000				631,879
Harris County, TX, Health Facilities Development Corp., Hospital Rev. (Memorial Hermann Healthcare Systems), “B”, 7.25%, 2035			610,000				762,360
Illinois Finance Authority Rev. (Kewanee Hospital), 5.1%, 2031			375,000				374,089
Illinois Finance Authority Rev. (Provena Health), “A”, 7.75%, 2034			945,000				1,222,839
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 6.875%, 2038			940,000				1,127,182
Indiana Health & Educational Facilities Finance Authority, Hospital Rev. (Clarian Health), “A”, 5%, 2039			1,000,000				1,042,670
Indiana Health & Educational Facilities Finance Authority, Hospital Rev. (Community Foundation of Northwest Indiana), 5.5%, 2037			1,860,000				1,981,198
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.25%, 2031			595,000				689,665
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.375%, 2041			375,000				435,094
Johnson City, TN, Health & Educational Facilities Board Hospital Rev. (Mountain States Health Alliance), 6%, 2038			365,000				421,568
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.375%, 2040			1,095,000				1,297,334
Knox County, IN, Economic Development Rev. (Good Samaritan Hospital), “A”, 5%, 2037			85,000				91,258
Knox County, IN, Economic Development Rev. (Good Samaritan Hospital), “A”, 5%, 2042			170,000				181,954
Laramie County, WY, Hospital Rev. (Cheyenne Regional Medical Center Project), 5%, 2032			65,000				72,080
Laramie County, WY, Hospital Rev. (Cheyenne Regional Medical Center Project), 5%, 2037			210,000				230,061
Laramie County, WY, Hospital Rev. (Cheyenne Regional Medical Center Project), 5%, 2042			325,000				353,516
Louisiana Public Facilities Authority Hospital Rev. (Lake Charles Memorial Hospital), 6.375%, 2034			1,615,000				1,736,400
Lufkin, TX, Health Facilities Development Corp. Rev. (Memorial Health System), 5.5%, 2037			110,000				113,192
Macomb County, MI, Hospital Finance Authority Rev. (Mount Clemens General Hospital), 5.875%, 2013 (c)			435,000				466,094
Martin County, FL, Health Facilities Authority Rev. (Martin Memorial Medical Center), 5.5%, 2042			495,000				534,922
Massachusetts Health & Educational Facilities Authority Rev. (Saints Memorial Medical Center), “A”, 6%, 2023			505,000				506,990
Miami Beach, FL, Health Facilities Authority Rev. (Mount Sinai Medical Center), 6.75%, 2014 (c)			110,000				125,887
Miami Beach, FL, Health Facilities Authority Rev. (Mount Sinai Medical Center), 6.75%, 2029			700,000				754,894
Miami Beach, FL, Health Facilities Authority Rev. (Mount Sinai Medical Center), “A”, 6.7%, 2019			995,000				1,008,731
Michigan Hospital Finance Authority Rev. (Henry Ford Health System), 5.75%, 2039			2,000,000				2,245,980
Monroe County, MI, Hospital Finance Authority, Hospital Rev. (Mercy Memorial Hospital Corp.), 5.5%, 2035			1,020,000				1,059,066
Monroe County, PA, Hospital Authority Rev. (Pocono Medical Center), “A”, 5%, 2032			85,000				91,333
Monroe County, PA, Hospital Authority Rev. (Pocono Medical Center), “A”, 5%, 2041			60,000				63,458
Montgomery, AL, Medical Clinic Board Health Care Facility Rev. (Jackson Hospital & Clinic), 5.25%, 2031			225,000				231,485
Montgomery, AL, Medical Clinic Board Health Care Facility Rev. (Jackson Hospital & Clinic), 5.25%, 2036			1,135,000				1,160,163
Mount Lebanon, PA, Hospital Authority Rev. (St. Clair Memorial Hospital), 5.625%, 2032			435,000				436,253
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6%, 2027			1,110,000				1,270,007
New Mexico Hospital Equipment Loan Council, Hospital Rev. (Rehoboth McKinley Christian Hospital), “A”, 5%, 2017			100,000				99,778
New Mexico Hospital Equipment Loan Council, Hospital Rev. (Rehoboth McKinley Christian Hospital), “A”, 5.25%, 2026			440,000				396,224
Norman, OK, Regional Hospital Authority Rev., 5%, 2027			300,000				307,551
Norman, OK, Regional Hospital Authority Rev., 5.375%, 2029			175,000				179,722
Norman, OK, Regional Hospital Authority Rev., 5.375%, 2036			1,395,000				1,417,627
Ohio Higher Educational Facility Commission Rev. (University Hospital Health System), 6.75%, 2039			1,610,000				1,859,421
Oklahoma Development Finance Authority Rev. (Comanche County Hospital), “B”, 6.6%, 2031			1,665,000				1,700,448
Olympia, WA, Healthcare Facilities Authority Rev. (Catholic Health Initiatives), “D”, 6.375%, 2036			1,500,000				1,801,455
Palomar Pomerado Health Care District, CA, COP, 6.75%, 2039			1,735,000				1,937,544
Rhode Island Health & Educational Building Corp. Rev., Hospital Financing (Lifespan Obligated Group), 6.375%, 2012 (c)			1,560,000				1,563,229
Rhode Island Health & Educational Building Corp., Hospital Financing (Lifespan Obligated Group), 6.5%, 2012 (c)			505,000				506,066
Royal Oak, MI, Hospital Finance Authority Rev. (William Beaumont Hospital), 8.25%, 2039			1,595,000				2,066,275
Rutherford County, TN, Health & Educational Facilities Board Rev. (Ascension Health), 5%, 2040 (u)			12,500,000				13,959,500
Salida, CO, Hospital District Rev., 5.25%, 2036			1,582,000				1,608,451
Salt Lake City, UT, Hospital Authority Rev. (Intermountain Health Care), ETM, FRN, AMBAC, 13.094%, 2020 (c)(p)			600,000				603,672
Shelby County, TN, Educational & Hospital Facilities Board Hospital Rev. (Methodist Healthcare), 6.375%, 2012 (c)			625,000				628,038
Shelby County, TN, Educational & Housing Facilities Board Hospital Rev. (Methodist Healthcare), 6.25%, 2012 (c)			185,000				185,881

 

2

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Portfolio of Investments (unaudited) – continued

 

Issuer		Shares/Par				Value ($)
Municipal Bonds - continued
Healthcare Revenue - Hospitals - continued
Shelby County, TN, Educational & Housing Facilities Board Hospital Rev. (Methodist Healthcare), 6.25%, 2012 (c)		$	315,000			$	316,499
Shelby County, TN, Educational & Housing Facilities Board Hospital Rev. (Methodist Healthcare), 6.375%, 2012 (c)			375,000				376,823
Skagit County, WA, Public Hospital District No. 001 Rev. (Skagit Valley Hospital), 6%, 2023			205,000				212,501
South Carolina Jobs & Economic Development Authority, Hospital Facilities Rev. (Palmetto Health Alliance), 6.25%, 2031			835,000				870,103
South Dakota Health & Educational Facilities Authority Rev. (Avera Health), “A”, 5%, 2042			175,000				189,917
South Dakota Health & Educational Facilities Authority Rev. (Prairie Lakes Health Care System), 5.625%, 2013 (c)			670,000				693,953
South Lake County, FL, Hospital District Rev. (South Lake Hospital), “A”, 6%, 2029			255,000				287,405
South Lake County, FL, Hospital District Rev. (South Lake Hospital), “A”, 6.25%, 2039			385,000				430,896
Southeastern Ohio Port Authority, Hospital Facilities Rev., 5.75%, 2032			595,000				618,919
Southeastern Ohio Port Authority, Hospital Facilities Rev., 6%, 2042			620,000				645,116
Sullivan County, TN, Health, Educational & Housing Facilities Board Hospital Rev. (Wellmont Health Systems Project), “C”, 5.25%, 2036			1,115,000				1,164,361
Sumner County, TN, Health, Educational & Housing Facilities Board Rev. (Sumner Regional Health Systems, Inc.), “A”, 5.5%, 2046 (a)(d)			735,000				9,188
Tallahassee, FL, Health Facilities Rev. (Tallahassee Memorial Healthcare, Inc.), 6.25%, 2020			3,085,000				3,091,725
Tyler, TX, Health Facilities Development Corp. (East Texas Medical Center), “A”, 5.25%, 2032			985,000				1,028,921
Tyler, TX, Health Facilities Development Corp. (East Texas Medical Center), “A”, 5.375%, 2037			810,000				839,662
Upland, CA, COP (San Antonio Community Hospital), 6.375%, 2032			1,750,000				2,103,885
Upper Illinois River Valley Development, Health Facilities Rev. (Morris Hospital), 6.625%, 2031			600,000				606,882
Wapello County, IA, Hospital Authority Rev. (Ottumwa Regional Health Center), 6.375%, 2012 (c)			1,500,000				1,514,490
Washington Health Care Facilities Authority Rev. (Virginia Mason Medical Center), “A”, 6.25%, 2042			1,400,000				1,511,188
West Contra Costa, CA, Healthcare District, AMBAC, 5.5%, 2029			195,000				201,558
West Virginia Hospital Finance Authority, Hospital Rev. (Thomas Health System), 6.5%, 2038			905,000				937,336
Wisconsin Health & Educational Facilities Authority Rev. (Aurora Health Care, Inc.), 6.875%, 2030			1,000,000				1,032,040
Wisconsin Health & Educational Facilities Authority Rev. (Aurora Health Care, Inc.), “A”, 5%, 2026			320,000				360,269
Wisconsin Health & Educational Facilities Authority Rev. (Aurora Health Care, Inc.), “A”, 5%, 2028			95,000				105,251
Wisconsin Health & Educational Facilities Authority Rev. (Wheaton Franciscan Services), 5.25%, 2034			1,135,000				1,185,621
Wisconsin Health & Educational Facilities Authority Rev. (Wheaton Franciscan Services), “A”, 5.25%, 2025			745,000				756,972
Yonkers, NY, Industrial Development Agency, Civic Facilities Rev. (St. Joseph’s Hospital), “C”, 6.2%, 2020			750,000				749,933
						$	92,900,594
Healthcare Revenue - Long Term Care - 13.7%
Abilene, TX, Health Facilities Development Corp., Retirement Facilities Rev. (Sears Methodist Retirement Systems, Inc.), “A”, 7%, 2033		$	345,000			$	259,540
Arizona Health Facilities Authority Rev. (The Terraces Project), 7.75%, 2013 (c)			750,000				828,570
Bell County, TX, Health Facility Development Corp. (Advanced Living Technologies, Inc.), 8%, 2036			3,400,000				3,059,728
Bucks County, PA, Industrial Development Authority Retirement Community Rev. (Ann’s Choice, Inc.), “A”, 6.125%, 2025			430,000				436,029
Bucks County, PA, Industrial Development Authority Retirement Community Rev. (Ann’s Choice, Inc.), “A”, 6.25%, 2035			290,000				293,054
Bucks County, PA, Industrial Development Authority Rev. (Lutheran Community Telford Center), 5.75%, 2027			170,000				173,701
Bucks County, PA, Industrial Development Authority Rev. (Lutheran Community Telford Center), 5.75%, 2037			225,000				226,028
Chartiers Valley, PA, Industrial & Commercial Development Authority (Asbury Health Center Project), 5.75%, 2022			150,000				154,377
Chester County, PA, Industrial Development Authority Rev. (RHA Nursing Home), 8.5%, 2032			540,000				544,055
Colorado Health Facilities Authority Rev. (American Baptist Homes), “A”, 5.9%, 2037			755,000				737,650
Colorado Health Facilities Authority Rev. (Christian Living Communities Project), “A”, 5.75%, 2037			375,000				386,888
Colorado Health Facilities Authority Rev. (Covenant Retirement Communities, Inc.), “B”, 6.125%, 2033			1,000,000				1,017,810
Colorado Health Facilities Authority Rev. (Evangelical Lutheran Good Samaritan Society Project), 5%, 2042			1,055,000				1,116,222
Cumberland County, PA, Municipal Authority Rev. (Diakon Lutheran Social Ministries), 6.125%, 2029			1,360,000				1,500,134
Cumberland County, PA, Municipal Authority Rev. (Wesley), “A”, 7.25%, 2013 (c)			720,000				747,857
Cumberland County, PA, Municipal Authority, Retirement Community Rev. (Wesley), “A”, 7.25%, 2013 (c)			280,000				290,833
Fulton County, GA, Residential Care Facilities, Elderly Authority Rev. (Canterbury Court), “A”, 6.125%, 2034			330,000				334,003
Georgia Medical Center Hospital Authority Rev. (Spring Harbor Green Island Project), 5.25%, 2027			1,000,000				1,000,380
Georgia Medical Center Hospital Authority Rev. (Spring Harbor Green Island Project), 5.25%, 2037			215,000				205,781
Hawaii Department of Budget & Finance, Special Purpose Rev. (15 Craigside Project), “A”, 8.75%, 2029			105,000				124,961
Hawaii Department of Budget & Finance, Special Purpose Rev. (15 Craigside Project), “A”, 9%, 2044			275,000				328,620

 

3

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Portfolio of Investments (unaudited) – continued

 

Issuer		Shares/Par				Value ($)
Municipal Bonds - continued
Healthcare Revenue - Long Term Care - continued
Hawaii Department of Budget & Finance, Special Purpose Rev. (Kahala Nui Senior Living Community), 8%, 2033		$	500,000			$	558,955
Hawaii Department of Budget & Finance, Special Purpose Senior Living Rev. (Kahala Nui), 5.125%, 2032			185,000				196,143
Hawaii Department of Budget & Finance, Special Purpose Senior Living Rev. (Kahala Nui), 5.25%, 2037			165,000				173,836
Huntsville-Redstone Village, AL, Special Care Facilities Financing Authority (Redstone Village Project), 5.5%, 2028			410,000				420,287
Huntsville-Redstone Village, AL, Special Care Facilities Financing Authority (Redstone Village Project), 5.5%, 2043			440,000				407,075
Illinois Finance Authority Rev. (Christian Homes, Inc.), 6.125%, 2027			850,000				936,267
Illinois Finance Authority Rev. (Evangelical Retirement Homes of Greater Chicago, Inc.), 7.25%, 2045			500,000				550,450
Illinois Finance Authority Rev. (Franciscan Communities, Inc.), “A”, 5.5%, 2037			800,000				778,824
Illinois Finance Authority Rev. (Friendship Village), “A”, 5.375%, 2025			1,270,000				1,279,677
Illinois Finance Authority Rev. (Montgomery Place), “A”, 5.75%, 2038			520,000				520,650
Illinois Finance Authority Rev. (The Clare at Water Tower), “A-6”, 6%, 2028 (a)(d)			343,000				76,489
Illinois Finance Authority Rev., Capital Appreciation, (The Clare at Water Tower), “B”, 0%, 2050 (a)			147,000				27,798
Indiana Finance Authority Rev. (Marquette Project), 4.75%, 2032			740,000				743,367
Indiana Finance Authority Rev. (Marquette Project), 5%, 2039			185,000				187,523
Iowa Finance Authority, Health Care Facilities Rev. (Care Initiatives), “A”, 5.5%, 2025			800,000				838,296
Iowa Finance Authority, Health Care Facilities Rev. (Care Initiatives), “B”, 5.75%, 2018			595,000				596,035
James City County, VA, Economic Development (WindsorMeade Project), “A”, 5.4%, 2027			195,000				170,646
James City County, VA, Economic Development (WindsorMeade Project), “A”, 5.5%, 2037			785,000				643,865
Kentucky Economic Development Finance Authority Rev. (Masonic Home Independent Living II), 7.25%, 2041			250,000				279,940
Kentucky Economic Development Finance Authority Rev. (Masonic Home Independent Living II), 7.375%, 2046			200,000				224,932
Lenexa, KS, Health Care Facilities Rev. (Lakeview Village, Inc.), 5.375%, 2027			315,000				325,351
Lenexa, KS, Health Care Facilities Rev. (Lakeview Village, Inc.), 7.125%, 2029			345,000				391,582
Maryland Health & Higher Educational Facilities Authority Rev. (Charlestown Community), 6.25%, 2041			475,000				541,576
Massachusetts Development Finance Agency Rev. (Adventcare), “A”, 6.75%, 2037			1,270,000				1,335,545
Massachusetts Development Finance Agency Rev. (Linden Ponds, Inc.), “A-1”, 6.25%, 2031			239,410				200,803
Massachusetts Development Finance Agency Rev. (Linden Ponds, Inc.), “A-1”, 6.25%, 2039			59,939				47,591
Massachusetts Development Finance Agency Rev. (Linden Ponds, Inc.), “A-2”, 5.5%, 2046			15,996				11,075
Massachusetts Development Finance Agency Rev. (Linden Ponds, Inc.), Capital Appreciation, “B”, 0%, 2056			79,566				1,049
Massachusetts Development Finance Agency Rev. (The Groves in Lincoln), “A”, 7.75%, 2039			150,000				81,183
Massachusetts Development Finance Agency Rev. (The Groves in Lincoln), “A”, 7.875%, 2044			225,000				121,761
Montgomery County, PA, Higher Education & Health Authority Rev. (AHF/Montgomery), 6.875%, 2036			1,145,000				1,167,637
Montgomery County, PA, Industrial Development Authority Retirement Community Rev. (ACTS Retirement - Life Communities, Inc.), 5%, 2028			565,000				612,245
Montgomery County, PA, Industrial Development Authority Retirement Community Rev. (ACTS Retirement - Life Communities, Inc.), 5%, 2029			255,000				274,821
Montgomery County, PA, Industrial Development Authority Rev. (Whitemarsh Continuing Care), 6.125%, 2028			250,000				254,643
Montgomery County, PA, Industrial Development Authority Rev. (Whitemarsh Continuing Care), 6.25%, 2035			510,000				518,563
New Jersey Economic Development Authority Rev. (Lions Gate), “A”, 5.875%, 2037			530,000				532,740
New Jersey Economic Development Authority Rev. (Seabrook Village, Inc.), 5.25%, 2036			715,000				720,391
Norfolk, VA, Redevelopment & Housing Authority Rev. (Fort Norfolk Retirement Community), “A”, 6%, 2025			215,000				216,602
Norfolk, VA, Redevelopment & Housing Authority Rev. (Fort Norfolk Retirement Community), “A”, 6.125%, 2035			330,000				332,254
Pell City, AL, Special Care Facilities, Financing Authority Rev. (Noland Health Services, Inc.), 5%, 2039			290,000				309,352
Sarasota County, FL, Health Facility Authority Rev. (Sarasota Manatee), 5.75%, 2037			490,000				387,923
Sarasota County, FL, Health Facility Authority Rev. (Sarasota Manatee), 5.75%, 2045			105,000				81,168
Shelby County, TN, Health, Educational & Housing Facilities Board Rev. (Germantown Village), “A”, 7.25%, 2034			665,000				670,154
South Carolina Jobs & Economic Development Authority Rev. (Woodlands at Furman), “A”, 6%, 2032			367,169				284,325
South Carolina Jobs & Economic Development Authority Rev. (Woodlands at Furman), “A”, 6%, 2047			335,086				242,552
South Carolina Jobs & Economic Development Authority Rev. (Woodlands at Furman), Capital Appreciation, “B”, 0%, 2047			157,358				5,621
South Carolina Jobs & Economic Development Authority Rev. (Woodlands at Furman), Capital Appreciation, “B”, 0%, 2047			143,608				5,130
St. John’s County, FL, Industrial Development Authority Rev. (Presbyterian Retirement), “A”, 6%, 2045			1,565,000				1,746,743
Sterling, IL (Hoosier Care), 7.125%, 2034			645,000				645,168
Suffolk County, NY, Industrial Development Agency (Medford Hamlet Assisted Living), 6.375%, 2039			475,000				454,832
Tarrant County, TX, Cultural Education Facilities Finance Corp. Retirement Facility (Air Force Village), 6.125%, 2029			115,000				127,617
Tarrant County, TX, Cultural Education Facilities Finance Corp. Retirement Facility (Air Force Village), 5.125%, 2037			100,000				100,434

 

4

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Portfolio of Investments (unaudited) – continued

 

Issuer		Shares/Par				Value ($)
Municipal Bonds - continued
Healthcare Revenue - Long Term Care - continued
Tarrant County, TX, Cultural Education Facilities Finance Corp. Retirement Facility (Air Force Village), 6.375%, 2044		$	780,000			$	852,189
Tarrant County, TX, Cultural Education Facilities Finance Corp. Retirement Facility (Stayton at Museum Way), 8.25%, 2044			1,500,000				1,676,880
Tempe, AZ, Industrial Development Authority Rev. (Friendship Village), “A”, 6.25%, 2042			225,000				242,096
Tempe, AZ, Industrial Development Authority Rev. (Friendship Village), “A”, 6.25%, 2046			170,000				182,657
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7%, 2030			245,000				287,701
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7.125%, 2040			370,000				431,809
Travis County, TX, Health Facilities Development Corp., Retirement Facilities Rev. (Querencia Barton Creek), 5.5%, 2025			460,000				464,490
Ulster County, NY, Industrial Development Agency (Woodland Pond), “A”, 6%, 2037			1,075,000				771,323
						$	41,034,852
Healthcare Revenue - Other - 0.3%
Koyukuk, AK, Tanana Chiefs Conference, Healthcare Facilities Project, 7.75%, 2041		$	705,000			$	762,260
Human Services - 2.3%
Alaska Industrial Development & Export Authority Community Provider Rev. (Boys & Girls Home of Alaska, Inc.), 5.875%, 2027 (a)		$	210,000			$	69,300
Alaska Industrial Development & Export Authority Community Provider Rev. (Boys & Girls Home of Alaska, Inc.), 6%, 2036 (a)			325,000				107,250
Greenville County, SC, Hospital Rev. (Chestnut Hill), “A”, 8%, 2015			945,000				950,481
Louisiana Local Government, Environmental Facilities & Community Development Authority Rev. (CDF Healthcare), “A”, 7%, 2036			490,000				497,125
Louisiana Local Government, Environmental Facilities & Community Development Authority Rev. (CDF Healthcare), “C”, 7%, 2036			375,000				379,451
Louisiana Local Government, Environmental Facilities & Community Development Authority Rev. (Westside Rehab Center Project), “A”, 6.85%, 2036			1,100,000				1,126,994
Louisiana Local Government, Environmental Facilities & Community Development Authority Rev. (Westside Rehab Center Project), “B”, 6.5%, 2013			115,000				115,210
Massachusetts Development Finance Agency Rev. (Evergreen Center, Inc.), 5.5%, 2035			620,000				629,040
New York, NY, Industrial Development Agency, Civic Facility Rev. (A Very Special Place), “A”, 5.75%, 2029			985,000				951,480
New York, NY, Industrial Development Agency, Civic Facility Rev. (Special Needs Facilities), 6.5%, 2017			905,000				914,285
Orange County, FL, Health Facilities Authority Rev. (GF/Orlando Healthcare Facilities), 9%, 2031			890,000				892,243
Osceola County, FL, Industrial Development Authority Rev. (Community Provider), 7.75%, 2017			165,000				165,945
						$	6,798,804
Industrial Revenue - Airlines - 7.0%
Clayton County, GA, Development Authority Special Facilities Rev. (Delta Airlines, Inc.), “A”, 8.75%, 2029		$	555,000			$	676,317
Clayton County, GA, Development Authority Special Facilities Rev. (Delta Airlines, Inc.), “B”, 9%, 2035			285,000				313,654
Denver, CO, City & County Airport Rev. (United Airlines), 5.25%, 2032			3,735,000				3,753,152
Denver, CO, City & County Airport Rev. (United Airlines), 5.75%, 2032			1,600,000				1,653,872
Houston, TX, Airport Systems Rev., Special Facilities (Continental Airlines, Inc. Terminal E project), 6.75%, 2029			2,940,000				2,955,082
Houston, TX, Airport Systems Rev., Special Facilities (Continental Airlines, Inc. Terminal E project), 7%, 2029			385,000				387,048
Houston, TX, Airport Systems Rev., Special Facilities (Continental Airlines, Inc.), 6.625%, 2038			470,000				517,428
Los Angeles, CA, Regional Airport Lease Rev. (American Airlines, Inc.), “C”, 7.5%, 2024 (a)(d)			850,000				845,155
New Jersey Economic Development Authority, Special Facilities Rev. (Continental Airlines, Inc.), 6.25%, 2029			1,300,000				1,306,136
New Jersey Economic Development Authority, Special Facilities Rev. (Continental Airlines, Inc.), 7.2%, 2030			1,595,000				1,602,353
New York, NY, City Industrial Development Agencies Rev. (American Airlines, Inc.), 7.625%, 2025 (d)(q)			5,485,000				5,845,145
New York, NY, City Industrial Development Agencies Rev. (American Airlines, Inc.), 7.75%, 2031 (d)(q)			1,025,000				1,092,291
						$	20,947,633
Industrial Revenue - Chemicals - 2.0%
Brazos River, TX, Harbor Navigation District (Dow Chemical Co.), “A”, 5.95%, 2033		$	2,000,000			$	2,214,820
Brazos River, TX, Harbor Navigation District (Dow Chemical Co.), “B-2”, 4.95%, 2033			75,000				80,673
Louisiana Environmental Facilities & Community Development Authority Rev. (Westlake Chemical), 6.75%, 2032			1,000,000				1,122,330
Louisiana Environmental Facilities & Community Development Authority Rev. (Westlake Chemical), “A”, 6.5%, 2029			610,000				710,742
Red River Authority, TX, Pollution Control Rev. (Celanese Project) “B”, 6.7%, 2030			1,920,000				1,941,370
						$	6,069,935
Industrial Revenue - Environmental Services - 1.3%
California Pollution Control Financing Authority, Solid Waste Disposal Rev. (Waste Management, Inc.), “A”, 5%, 2022		$	695,000			$	760,094

 

5

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Portfolio of Investments (unaudited) – continued

 

Issuer		Shares/Par				Value ($)
Municipal Bonds - continued
Industrial Revenue - Environmental Services - continued
Gulf Coast Waste Disposal Authority (Waste Management, Inc.), 5.2%, 2028		$	440,000			$	469,238
Henrico County, VA, Industrial Development Authority Rev. (Browning Ferris, Inc.), 5.45%, 2014			1,750,000				1,830,063
Maine Finance Authority Solid Waste Disposal Rev. (Casella Waste Systems, Inc.), 6.25%, 2025 (b)			705,000				716,555
						$	3,775,950
Industrial Revenue - Other - 2.5%
California Statewide Communities Development Authority Facilities (Microgy Holdings Project), 9%, 2038 (a)(d)		$	12,624			$	126
Gulf Coast, TX, Industrial Development Authority Rev. (Microgy Holdings LLC Project), 7%, 2036 (a)(d)			224,775				2,248
Houston, TX, Industrial Development Corp. (United Parcel Service, Inc.), 6%, 2023			90,000				86,061
New Jersey Economic Development Authority Rev. (GMT Realty LLC), “B”, 6.875%, 2037			430,000				432,356
New Jersey Economic Development Authority Rev. (GMT Realty LLC), “C”, 6.5%, 2015			615,000				623,241
New York, NY, City Industrial Development Agency Rev., Liberty Bonds (IAC/InterActiveCorp), 5%, 2035			620,000				636,504
Park Creek Metropolitan District, CO, Rev. (Custodial Receipts), “CR-1”, 7.875%, 2032 (b)(n)			1,270,000				1,308,113
Park Creek Metropolitan District, CO, Rev. (Custodial Receipts), “CR-2”, 7.875%, 2032 (b)(n)			580,000				597,406
Philadelphia, PA, Industrial Development Authority Rev. (Host Marriott LP), 7.75%, 2017			3,255,000				3,262,975
St. Charles Parish, LA, Gulf Zone Opportunity Zone Rev. (Valero Energy Corp.), 4%, 2040 (b)			600,000				634,416
						$	7,583,446
Industrial Revenue - Paper - 2.2%
Butler, AL, Industrial Development Board, Solid Waste Disposal Rev. (Georgia-Pacific Corp.), 5.75%, 2028		$	155,000			$	161,673
Cass County, TX, Industrial Development Corp. (International Paper Co.), “A”, 4.625%, 2027			2,150,000				2,186,722
Escambia County, FL, Environmental Improvement Rev. (International Paper Co.), “A”, 4.75%, 2030			525,000				525,273
Lowndes County, MS, Solid Waste Disposal & Pollution Control Rev. (Weyerhaeuser Co.), 6.8%, 2022			2,000,000				2,276,300
Rockdale County, GA, Development Authority Project Rev. (Visy Paper Project), “A”, 6.125%, 2034			640,000				666,099
Selma, AL, Industrial Development Board Rev., Gulf Opportunity Zone (International Paper Co.), “A”, 5.375%, 2035			565,000				613,946
West Point, VA, Industrial Development Authority, Solid Waste Disposal Rev. (Chesapeake Corp.), 6.25%, 2019 (a)(d)			1,870,000				39,270
West Point, VA, Industrial Development Authority, Solid Waste Disposal Rev. (Chesapeake Corp.), “A”, 6.375%, 2019 (a)(d)			700,000				14,700
						$	6,483,983
Miscellaneous Revenue - Entertainment & Tourism - 0.9%
Brooklyn, NY, Arena Local Development Corp. (Barclays Center Project), 6%, 2030		$	230,000			$	261,439
Brooklyn, NY, Arena Local Development Corp. (Barclays Center Project), 6.25%, 2040			150,000				171,140
Fort Sill Apache Tribe, OK, Economic Development Authority, Gaming Enterprise., “A”, 8.5%, 2026 (n)			520,000				556,176
Harris County, Houston, TX, Sports Authority, Special Rev., “A”, NATL, 5%, 2025			885,000				885,044
Seminole Tribe, FL, Special Obligation Rev., “A”, 5.25%, 2027 (n)			515,000				525,212
Seneca Nation Indians, NY, Capital Improvements Authority, Special Obligation, 5%, 2023 (n)			275,000				278,036
						$	2,677,047
Miscellaneous Revenue - Other - 4.3%
Austin, TX, Convention Center (Convention Enterprises, Inc.), “A”, 5.25%, 2015		$	500,000			$	531,605
Austin, TX, Convention Center (Convention Enterprises, Inc.), “A”, SYNCORA, 5.25%, 2017			215,000				236,055
Austin, TX, Convention Center (Convention Enterprises, Inc.), “A”, SYNCORA, 5.25%, 2020			170,000				183,790
Austin, TX, Convention Center (Convention Enterprises, Inc.), “A”, SYNCORA, 5.25%, 2024			330,000				348,843
Austin, TX, Convention Center (Convention Enterprises, Inc.), “A”, SYNCORA, 5%, 2034			200,000				202,834
Baker, FL, Correctional Development Corp. (Baker County Detention Center), 7.5%, 2030			440,000				431,204
Citizens Property Insurance Corp., FL, “A-1”, 5%, 2019			245,000				281,064
Citizens Property Insurance Corp., FL, “A-1”, 5%, 2020			1,285,000				1,478,534
Cleveland-Cuyahoga County, OH, Port Authority Rev., 7%, 2040			235,000				254,599
Cleveland-Cuyahoga County, OH, Port Authority Rev. (Cleveland City), “B”, 4.5%, 2030			210,000				183,282
Cleveland-Cuyahoga County, OH, Port Authority Rev. (Fairmount), “B”, 5.125%, 2025			145,000				146,502
Columbus, OH, Franklin County Finance Authority Development Rev., 6%, 2035			700,000				725,193
Dayton Montgomery County, OH, Port Authority Rev. (Parking Garage), 6.125%, 2024			1,130,000				1,143,639
District of Columbia Rev. (American Society Hematology), 5%, 2036			85,000				92,331
District of Columbia Rev. (American Society Hematology), 5%, 2042			65,000				70,439
Hardeman County, TN, Correctional Facilities Rev., 7.75%, 2017			1,165,000				1,172,969

 

6

---

Portfolio of Investments (unaudited) – continued

 

Issuer		Shares/Par				Value ($)
Municipal Bonds - continued
Miscellaneous Revenue - Other - continued
Houston, TX, Industrial Development Corp. Rev. (Aero Syracuse LLC), 6.375%, 2023		$	75,000			$	75,088
Massachusetts Port Authority Facilities Rev. (Conrac Project), “A”, 5.125%, 2041			65,000				71,405
New Orleans, LA, Aviation Board Gulf Opportunity Zone CFC Rev. (Consolidated Rental Car), “A”, 6.25%, 2030			455,000				508,554
New York Liberty Development Corp., Liberty Rev. (One Bryant Park LLC), 6.375%, 2049			1,065,000				1,223,589
New York Liberty Development Corp., Liberty Rev. (World Trade Center Project), 5%, 2044			895,000				993,092
Riversouth, OH, Authority Rev. (Lazarus Building), “A”, 5.75%, 2027			1,125,000				1,141,886
Summit County, OH, Port Authority Building Rev. (Flats East Development Recovery Zone Facility Bonds), 6.875%, 2040			85,000				92,683
Summit County, OH, Port Authority Building Rev. (Seville Project), “A”, 5.1%, 2025			160,000				155,682
Summit County, OH, Port Authority Building Rev. (Twinsburg Township), “D”, 5.125%, 2025			145,000				145,352
Summit County, OH, Port Authority Building Rev. (Workforce Policy Board), “F”, 4.875%, 2025			915,000				908,311
Texas Midwest Public Facilities Corp. Rev. (Secure Treatment Facilities Project), 9%, 2030 (a)(d)			395,000				118,500
						$	12,917,025
Multi-Family Housing Revenue - 2.1%
Bay County, FL, Housing Finance Authority, Multi-Family Rev. (Andrews Place II Apartments), AGM, 5%, 2035		$	210,000			$	212,369
Charter Mac Equity Issuer Trust, FHLMC, 6%, 2052 (n)			2,000,000				2,220,280
Indianapolis, IN, Multi-Family Rev. (Cambridge Station Apartments II), FNMA, 5.25%, 2039 (b)			435,000				443,126
Mississippi Home Corp., Rev. (Kirkwood Apartments), 6.8%, 2037 (d)(q)			1,095,000				704,545
MuniMae TE Bond Subsidiary LLC, 5.4%, 2049 (z)			1,000,000				695,080
MuniMae TE Bond Subsidiary LLC, FRN, 7.5%, 2049 (n)			1,598,711				1,582,788
North Charleston, SC, Housing Authority Rev. (Horizon Village), “A”, GNMA, 5.15%, 2048			445,000				454,670
						$	6,312,858
Parking - 0.2%
Boston, MA, Metropolitan Transit Parking Corp., Systemwide Parking Rev., 5.25%, 2036		$	460,000			$	517,408
Port Revenue - 0.2%
Maryland Economic Development Corp. Rev. (Port America Chesapeake Terminal Project), “B”, 5.375%, 2025		$	195,000			$	213,406
Maryland Economic Development Corp. Rev. (Port America Chesapeake Terminal Project), “B”, 5.75%, 2035			375,000				406,384
Massachusetts Port Authority, “A”, 5%, 2037			65,000				72,127
						$	691,917
Sales & Excise Tax Revenue - 4.0%
Chicago, IL, Transit Authority Sales Tax Receipts Rev., 5.25%, 2029		$	275,000			$	321,591
Chicago, IL, Transit Authority Sales Tax Receipts Rev., 5.25%, 2030			550,000				639,799
Chicago, IL, Transit Authority Sales Tax Receipts Rev., 5.25%, 2031			105,000				121,685
Chicago, IL, Transit Authority Sales Tax Receipts Rev., 5.25%, 2040			990,000				1,124,284
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6%, 2034			1,180,000				1,348,834
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6%, 2041			590,000				670,098
Massachusetts Bay Transportation Authority, Sales Tax Rev., “A”, 5%, 2024			2,150,000				2,764,707
Miami-Dade County, FL, Transit Sales Surtax Rev., 5%, 2037			460,000				519,823
Puerto Rico Infrastructure Financing Authority, Special Tax Rev., “B”, 5%, 2037			1,000,000				1,021,670
Puerto Rico Infrastructure Financing Authority, Special Tax Rev., “B”, 5%, 2041			1,000,000				1,009,660
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “A”, 5.375%, 2039			395,000				425,368
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “A”, 5.5%, 2042			350,000				378,994
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “C”, 5.25%, 2041			180,000				192,218
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, AMBAC, 0%, 2054			11,385,000				994,594
Utah Transit Authority Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 2028			950,000				446,966
						$	11,980,291
Single Family Housing - Local - 0.1%
Nortex, TX, Housing Finance Corp., Single Family Mortgage Rev., “B”, 5.5%, 2038		$	5,000			$	4,770
Sedgwick & Shawnee Counties, KS, Single Family Housing Rev., “A”, GNMA, 5.9%, 2035			120,000				126,378
Sedgwick & Shawnee Counties, KS, Single Family Housing Rev., “A”, GNMA, 6.25%, 2035			45,000				47,602
Sedgwick & Shawnee Counties, KS, Single Family Housing Rev., “A-1”, GNMA, 5.75%, 2037			40,000				42,056

 

7

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Portfolio of Investments (unaudited) – continued

 

Issuer		Shares/Par				Value ($)
Municipal Bonds - continued
Single Family Housing - Local - continued
Sedgwick & Shawnee Counties, KS, Single Family Housing Rev., “A-2”, GNMA, 5.75%, 2037		$	125,000			$	130,345
Sedgwick & Shawnee Counties, KS, Single Family Housing Rev., “A-5”, GNMA, 5.9%, 2037			65,000				67,554
						$	418,705
Single Family Housing - State - 0.3%
Colorado Housing & Finance Authority Rev., “C-2”, 5.9%, 2023		$	80,000			$	84,090
Colorado Housing & Finance Authority Rev., “C-2”, FHA, 6.6%, 2032			75,000				78,767
Colorado Housing & Finance Authority Rev., “C-3”, FHA, 6.375%, 2033			30,000				31,171
Colorado Housing & Finance Authority Rev., “D-2”, 6.9%, 2029			130,000				134,172
Texas Affordable Housing Corp. (Single Family Mortgage), “B”, GNMA, 5.25%, 2039			685,000				717,757
						$	1,045,957
Solid Waste Revenue - 1.0%
Massachusetts Development Finance Agency, Resource Recovery Rev. (Ogden Haverhill Associates), “A”, 6.7%, 2014		$	85,000			$	85,430
Massachusetts Development Finance Agency, Resource Recovery Rev. (Ogden Haverhill Associates), “A”, 5.6%, 2019			2,850,000				2,859,092
Pennsylvania Economic Development Financing Authority, Sewer Sludge Disposal Rev. (Philadelphia Biosolids Facility), 6.25%, 2032			145,000				163,266
						$	3,107,788
State & Agency - Other - 0.3%
Commonwealth of Puerto Rico (Mepsi Campus), “A”, 6.5%, 2037		$	900,000			$	928,476
State & Local Agencies - 0.7%
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., Enhanced, “A”, FGIC, 5%, 2035		$	220,000			$	226,052
Guam Government Department of Education (John F. Kennedy High School), “A”, COP, 6.875%, 2040			620,000				681,498
Philadelphia, PA, Municipal Authority Rev., 6.5%, 2034			260,000				300,953
Puerto Rico Public Finance Corp., Commonwealth Appropriations, “B”, 6%, 2026			370,000				433,988
Puerto Rico Public Finance Corp., Commonwealth Appropriations, “B”, 5.5%, 2031			540,000				590,441
						$	2,232,932
Student Loan Revenue - 1.0%
Access to Loans for Learning, CA, Student Loan Rev., 7.95%, 2030		$	650,000			$	650,254
Iowa Student Loan Liquidity Corp., “A-2”, 5.5%, 2025			335,000				375,277
Iowa Student Loan Liquidity Corp., “A-2”, 5.6%, 2026			335,000				375,337
Iowa Student Loan Liquidity Corp., “A-2”, 5.7%, 2027			40,000				44,906
Iowa Student Loan Liquidity Corp., “A-2”, 5.75%, 2028			675,000				756,236
Massachusetts Educational Financing Authority, Education Loan Rev., “H”, ASSD GTY, 6.35%, 2030			760,000				840,644
						$	3,042,654
Tax - Other - 1.5%
Hudson Yards, NY, Infrastructure Corp. Rev., “A”, 5%, 2047		$	710,000			$	749,703
Hudson Yards, NY, Infrastructure Corp. Rev., “A”, 5.75%, 2047			620,000				727,130
New Jersey Economic Development Authority Rev., 5%, 2025			220,000				245,573
New Jersey Economic Development Authority Rev., 5%, 2026			110,000				122,304
New Jersey Economic Development Authority Rev., 5%, 2028			45,000				49,640
New Jersey Economic Development Authority Rev., 5%, 2029			45,000				49,484
New York Dormitory Authority, State Personal Income Tax Rev.,”C”, 5%, 2034			1,670,000				1,937,016
Virgin Islands Public Finance Authority Rev. (Diageo Project), “A”, 6.75%, 2037			395,000				462,032
						$	4,342,882
Tax Assessment - 4.0%
Anne Arundel County, MD, Special Obligation (National Business Park-North Project), 6.1%, 2040		$	265,000			$	286,682
Arborwood Community Development District, FL, Capital Improvement Rev. (Master Infrastructure Projects), “A”, 5.35%, 2036			580,000				423,916
Arborwood Community Development District, FL, Special Assessment (Master Infrastructure Projects), “B”, 5.1%, 2014			190,000				156,946
Atlanta, GA, Tax Allocation (Eastside Project), “B”, 5.6%, 2030			815,000				871,765
Atlanta, GA, Tax Allocation (Princeton Lakes Project), 5.5%, 2031			470,000				482,596

 

8

---

Portfolio of Investments (unaudited) – continued

 

Issuer		Shares/Par				Value ($)
Municipal Bonds - continued
Tax Assessment - continued
Baltimore, MD, Special Obligation, (East Baltimore Research Park Project), “A”, 7%, 2038		$	715,000			$	770,877
Capital Region Community Development District, FL, Capital Improvement Rev., “A”, 7%, 2039			625,000				579,988
Concord Station Community Development District, FL, Special Assessment, 5%, 2015			110,000				109,183
Du Page County, IL, Special Service Area No. 31 Special Tax (Monarch Landing Project), 5.625%, 2036			305,000				295,887
Fishhawk Community Development District, FL, 7.04%, 2014			20,000				20,191
Heritage Harbour North Community Development District, FL, Capital Improvement Rev., 6.375%, 2038			560,000				536,418
Homestead, Community Development District, FL, Special Assessment, “A”, 6%, 2037			660,000				468,970
Homestead, Community Development District, FL, Special Assessment, “B”, 5.9%, 2013			250,000				176,093
Killarney Community Development District, FL, Special Assessment, “B”, 5.125%, 2009 (a)(d)			170,000				76,500
Lancaster County, SC, Assessment Rev. (Sun City Carolina Lakes), 5.45%, 2037			100,000				93,739
Legends Bay Community Development District, FL, “A”, 5.5%, 2014			415,000				359,261
Legends Bay Community Development District, FL, “A”, 5.875%, 2038			355,000				269,445
Main Street Community Development District, FL, “A”, 6.8%, 2038			545,000				521,320
Naturewalk Community Development District, FL, Capital Improvement Rev., “B”, 5.3%, 2016 (d)(q)			650,000				338,000
New Port Tampa Bay Community Development District, FL, Special Assessment, “B”, 5.3%, 2012 (a)(d)			440,000				172,700
Ohio County, WV, Commission Tax Increment Rev. (Fort Henry Centre), “A”, 5.85%, 2034			235,000				245,812
Old Palm Community Development District, FL, Special Assessment (Palm Beach Gardens), “B”, 5.375%, 2014			205,000				202,317
OTC Community Development District, FL, Special Assessment, “A”, 5.3%, 2038			930,000				923,462
Overland Park, KS, Special Assessment (Tallgrass Creek), 4.85%, 2016			170,000				166,246
Overland Park, KS, Special Assessment (Tallgrass Creek), 5.125%, 2028			592,000				519,024
Panther Trace II, Community Development District, FL, Special Assessment, 5.125%, 2013			195,000				176,613
Parkway Center Community Development District, FL, Special Assessment, “B”, 5.625%, 2014			745,000				681,884
Paseo Community Development District, FL, “B”, 4.875%, 2010 (a)(d)			210,000				2
Paseo Community Development District, FL, Capital Improvement Rev., Capital Appreciation, “A-2”, 0%, 2036			510,000				134,589
Paseo Community Development District, FL, Special Assessment, “A-1”, 5.4%, 2036			40,000				41,449
Prince George’s County, MD, Special Obligation (National Harbor Project), 5.2%, 2034			245,000				250,863
Sterling Hill Community Development District, FL, Special Assessment, 5.5%, 2010 (d)			165,000				115,502
Stone Ridge, CO, Metropolitan District No. 2, 7.25%, 2031			500,000				130,305
Tuscany Reserve Community Development District, FL, Special Assessment, “B”, 5.25%, 2016			785,000				720,920
Villa Vizcaya Community Development District, FL, “A”, 5.55%, 2039 (a)(d)			210,000				90,300
Watergrass Community Development District, FL, “A”, 5.375%, 2039			420,000				241,697
Watergrass Community Development District, FL, Special Assessment, “B”, 6.96%, 2017			425,000				409,394
						$	12,060,856
Tobacco - 6.3%
Buckeye, OH, Tobacco Settlement Financing Authority, “A-2”, 5.125%, 2024		$	2,905,000			$	2,430,149
Buckeye, OH, Tobacco Settlement Financing Authority, “A-2”, 5.875%, 2030			1,935,000				1,598,639
Buckeye, OH, Tobacco Settlement Financing Authority, “A-2”, 5.875%, 2047			825,000				666,699
California Statewide Financing Authority, Tobacco Settlement, 5.625%, 2029			1,430,000				1,430,358
District of Columbia, Tobacco Settlement, 6.25%, 2024			735,000				751,979
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A-1”, 5.75%, 2047			1,035,000				870,383
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A-4”, 7.8%, 2013 (c)			1,000,000				1,062,650
Illinois Railsplitter Tobacco Settlement Authority, 5.5%, 2023			880,000				1,028,641
Illinois Railsplitter Tobacco Settlement Authority, 6%, 2028			2,645,000				3,090,762
Iowa Tobacco Settlement Authority, Tobacco Settlement Rev., Asset Backed, “B”, 5.6%, 2034			1,635,000				1,520,190
Louisiana Tobacco Settlement Authority Rev., “2001-B”, 5.5%, 2030			830,000				850,725
New Jersey Tobacco Settlement Financing Corp., 7%, 2013 (c)			15,000				15,845
New Jersey Tobacco Settlement Financing Corp., “1-A”, 5%, 2041			2,095,000				1,706,398
Suffolk, NY, Tobacco Asset Securitization Corp., Tobacco Settlement, “B”, 5.25%, 2037			155,000				164,142
Tobacco Securitization Authority, Minnesota Tobacco Settlement Rev., “B”, 5.25%, 2031			1,440,000				1,619,827
Washington Tobacco Settlement Authority Rev., 6.5%, 2026			130,000				135,522
						$	18,942,909

 

9

---

Portfolio of Investments (unaudited) – continued

 

Issuer		Shares/Par				Value ($)
Municipal Bonds - continued
Toll Roads - 3.8%
E-470 Public Highway Authority, Colorado Rev., Capital Appreciation, “B”, NATL, 0%, 2027		$	4,115,000			$	1,865,618
Mid-Bay Bridge Authority, FL, Springing Lien Rev., “A”, 7.25%, 2040			1,580,000				1,989,899
North Texas Tollway Authority Rev., 6%, 2038			1,505,000				1,765,064
North Texas Tollway Authority Rev. (Special Projects System), “D”, 5%, 2031			1,110,000				1,285,247
Virginia Small Business Financing Authority Rev. (95 Express Lanes LLC), 5%, 2034			335,000				354,309
Virginia Small Business Financing Authority Rev. (95 Express Lanes LLC), 5%, 2040			1,205,000				1,268,720
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 5.25%, 2032			460,000				495,333
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 6%, 2037			765,000				869,683
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 5.5%, 2042			1,225,000				1,343,605
						$	11,237,478
Transportation - Special Tax - 0.5%
Arizona Transportation Board Highway Rev., “A”, 5%, 2036		$	1,290,000			$	1,471,980
Universities - Colleges - 15.1%
Allegheny County, PA, Higher Education Building Authority Rev. (Chatham University), “A”, 5%, 2030		$	155,000			$	168,418
Brevard County, FL, Industrial Development Rev. (TUFF Florida Tech LLC Project), 6.75%, 2039			1,055,000				1,178,846
California Educational Facilities Authority Rev. (Chapman University), 5%, 2031			240,000				265,176
California Municipal Finance Authority Rev. (University of La Verne), “A”, 6.25%, 2040			530,000				599,165
California State University Rev., “A”, 5%, 2037			1,950,000				2,184,117
California Statewide Communities Development Authority Rev. (California Baptist University), “A”, 5.4%, 2027			370,000				392,951
California Statewide Communities Development Authority Rev. (California Baptist University), “A”, 5.5%, 2038			420,000				433,625
Florida Higher Educational Facilities, Financial Authority Rev. (University of Tampa Project), “A”, 5%, 2032			40,000				43,951
Florida Higher Educational Facilities, Financial Authority Rev. (University of Tampa Project), “A”, 5.25%, 2042			355,000				393,553
Harris County, TX, Cultural Education Facilities Rev. (Baylor College of Medicine), “D”, 5.625%, 2032			510,000				532,547
Illinois Finance Authority Rev. (Illinois Institute of Technology), “A”, 5%, 2031			795,000				772,398
Illinois Finance Authority Rev. (Illinois Institute of Technology), “A”, 5%, 2036			1,380,000				1,303,134
Illinois Finance Authority Rev. (Roosevelt University Project), 6.25%, 2029			905,000				1,019,247
Illinois Finance Authority Rev. (Roosevelt University Project), 6.5%, 2039			300,000				337,533
Illinois Finance Authority Rev. (University of Chicago), “A”, 5%, 2051			270,000				302,621
Louisiana State University (Health Sciences Center Project), NATL, 6.375%, 2031			2,500,000				2,504,600
Massachusetts Development Finance Agency Rev. (Simmons College), “H”, SYNCORA, 5.25%, 2033			110,000				127,606
Massachusetts Health & Educational Facilities Authority Rev. (Massachusetts Institute of Technology), 5%, 2015 (u)			20,000,000				22,722,800
Massachusetts Health & Educational Facilities Authority Rev. (Simmons College), “I”, 8%, 2029			535,000				636,827
Massachusetts Health & Educational Facilities Authority Rev. (Suffolk University), “A”, 6.25%, 2030			1,370,000				1,598,543
Massachusetts Health & Educational Facilities Authority Rev. (Suffolk University), “A”, 5.75%, 2039			885,000				991,855
New Jersey Educational Facilities Authority Rev. (University of Medicine & Dentistry), “B”, 6%, 2017			590,000				703,746
New Jersey Educational Facilities Authority Rev. (University of Medicine & Dentistry), “B”, 7.5%, 2032			1,065,000				1,302,815
Pennsylvania Higher Educational Facilities Authority Rev. (Lasalle University), “A”, 5.25%, 2027			105,000				115,205
Pennsylvania Higher Educational Facilities Authority Rev. (Saint Francis University Project), “JJ2”, 6.25%, 2041			295,000				324,296
Portage County, OH, Port Authority Rev. (Northeast Ohio Medical University Project), 5%, 2037			320,000				340,688
Portage County, OH, Port Authority Rev. (Northeast Ohio Medical University Project), 5%, 2044			750,000				792,908
University of California Rev., “G”, 4%, 2029			2,325,000				2,533,134
Washington Higher Education Facilities Authority Rev. (Whitworth University), 5.875%, 2034			540,000				603,542
						$	45,225,847
Universities - Dormitories - 1.1%
Bowling Green, OH, Student Housing Rev. (State University Project), 5.75%, 2031		$	350,000			$	378,571
California Statewide Communities Development Authority Rev. (Lancer Educational Student Housing Project), 5.625%, 2033			380,000				392,456
Illinois Finance Authority Student Housing Rev. (Illinois State University), 6.75%, 2031			415,000				474,611
Illinois Finance Authority Student Housing Rev. (Northern Illinois University Project), 6.625%, 2031			1,215,000				1,407,991
Oregon Facilities Authority, Student Housing Rev. (Southern Oregon University), ASSD GTY, 4.7%, 2033			85,000				90,471
Oregon Facilities Authority, Student Housing Rev. (Southern Oregon University), ASSD GTY, 5%, 2044			105,000				112,984
Pennsylvania Higher Educational Facilities Authority Rev. (Edinboro University Foundation), 5.8%, 2030			155,000				174,203
Pennsylvania Higher Educational Facilities Authority Rev. (Edinboro University Foundation), 6%, 2043			215,000				240,505
						$	3,271,792

 

10

---

Portfolio of Investments (unaudited) – continued

 

Issuer		Shares/Par				Value ($)
Municipal Bonds - continued
Universities - Secondary Schools - 3.6%
California Statewide Communities Development Authority Rev. (Aspire Public Schools), 6.375%, 2045		$	1,000,000			$	1,052,190
Clifton, TX, Higher Education Finance Corp. Rev. (Idea Public Schools), 5.5%, 2031			160,000				175,374
Clifton, TX, Higher Education Finance Corp. Rev. (Idea Public Schools), 5.75%, 2041			130,000				143,677
Clifton, TX, Higher Education Finance Corp. Rev. (Uplift Education), “A”, 6.125%, 2040			570,000				641,284
Clifton, TX, Higher Education Finance Corp. Rev. (Uplift Education), “A”, 6.25%, 2045			350,000				394,975
Colorado Educational & Cultural Facilities Authority Rev. (Montessori Charter School Project), 4%, 2027			60,000				59,532
Colorado Educational & Cultural Facilities Authority Rev. (Montessori Charter School Project), 5%, 2037			75,000				76,770
Delaware Economic Development Authority Rev. (Newark Charter School, Inc. Project), 5%, 2042			180,000				184,678
Florida Development Finance Corp. Educational Facilities Rev. (Renaissance Charter School),”A”, 6%, 2040			380,000				404,293
Florida Development Finance Corp. Educational Facilities Rev. (Renaissance Charter School),”A”, 7.625%, 2041			875,000				1,011,999
La Vernia, TX, Higher Education Finance Corp. Rev. (KIPP, Inc.), “A”, 6.25%, 2039			365,000				417,312
Lee County, FL, Industrial Development Authority Rev. (Lee Charter Foundation), “A”, 5.25%, 2027			430,000				436,794
Lee County, FL, Industrial Development Authority Rev. (Lee Charter Foundation), “A”, 5.375%, 2037			945,000				950,358
Maryland Health & Higher Educational Facilities Authority Rev. (Washington Christian Academy), 5.5%, 2038 (a)(d)			140,000				56,000
Maryland Industrial Development Financing Authority, Economic Development Authority Rev. (Our Lady of Good Council), “A”, 6%, 2035			150,000				157,475
North Texas Education Finance Corp., Education Rev. (Uplift Education), “A”, 4.875%, 2032			110,000				114,751
North Texas Education Finance Corp., Education Rev. (Uplift Education), “A”, 5.125%, 2042			275,000				288,959
St. Paul, MN, Housing & Redevelopment Authority Charter School Lease Rev. (Nova Classical Academy), “A”, 6.375%, 2031			120,000				128,837
St. Paul, MN, Housing & Redevelopment Authority Charter School Lease Rev. (Nova Classical Academy), “A”, 6.625%, 2042			240,000				257,501
Utah County, UT, Charter School Finance Authority, Charter School Rev. (Early Light Academy Project), 8.25%, 2035			770,000				834,195
Utah County, UT, Charter School Finance Authority, Charter School Rev. (Hawthorne Academy Project), 8.25%, 2035			830,000				899,197
Utah County, UT, Charter School Rev. (Lakeview Academy), “A”, 5.625%, 2037			500,000				452,580
Utah County, UT, Charter School Rev. (Renaissance Academy), “A”, 5.625%, 2037			495,000				479,828
Utah County, UT, Charter School Rev. (Ronald Wilson Reagan Academy), “A”, 6%, 2038			1,255,000				1,281,556
						$	10,900,115
Utilities - Cogeneration - 0.4%
Alaska Industrial Development & Export Authority, Power Rev., Upper Lynn Canal Regional Power, 5.8%, 2018		$	830,000			$	830,905
Pennsylvania Economic Development Financing Authority Rev., Resource Recovery Rev. (Colver), “G”, 5.125%, 2015			350,000				359,279
						$	1,190,184
Utilities - Investor Owned - 4.4%
Apache County, AZ, Industrial Development Authority, Pollution Control Rev. (Tucson Electric Power Co.),”A”, 4.5%, 2030		$	1,055,000			$	1,090,659
Brazos River Authority, TX, Pollution Control Rev. (TXU Energy Co. LLC), 5%, 2041			835,000				77,688
Chula Vista, CA, Industrial Development Rev. (San Diego Gas), 5.875%, 2034			470,000				555,390
Connecticut Development Authority, Pollution Control Rev. (Connecticut Light & Power Co.), 5.95%, 2028			2,270,000				2,291,202
Farmington, NM, Pollution Control Rev. (Public Service New Mexico), “D”, 5.9%, 2040			1,840,000				2,040,247
Hawaii Department of Budget & Finance Special Purpose Rev. (Hawaiian Electric Co. & Subsidiary), 6.5%, 2039			750,000				871,050
Massachusetts Development Finance Agency, Solid Waste Disposal Rev. (Dominion Energy Brayton), 5.75%, 2042 (b)			165,000				199,109
Matagorda County, TX (CenterPoint Energy), 5.6%, 2027			1,500,000				1,556,925
Matagorda County, TX, Pollution Control Rev. (Central Power & Light Co.), “A”, 6.3%, 2029			525,000				610,796
Mecklenburg County, VA, Industrial Development Authority Rev. (UAE Mecklenburg LP), 6.5%, 2017			800,000				802,208
Owen County, KY, Waterworks System Rev. (American Water Co. Project), “A”, 6.25%, 2039			400,000				444,200
Pennsylvania Economic Development Financing Authority (Allegheny Energy Supply Co. LLC), 7%, 2039			1,165,000				1,379,092
Pima County, AZ, Industrial Development Authority Rev. (Tucson Electric Power Co.), 5.75%, 2029			1,315,000				1,397,582
						$	13,316,148
Utilities - Municipal Owned - 0.9%
Long Island, NY, Power Authority, “A”, 5%, 2038		$	1,155,000			$	1,290,944
Puerto Rico Electric Power Authority, Power Rev., “A”, 5%, 2042			600,000				616,500
Sacramento, CA, Municipal Utility District, “X”, 5%, 2028			565,000				663,107
						$	2,570,551

 

11

---

Portfolio of Investments (unaudited) – continued

 

Issuer		Shares/Par				Value ($)
Municipal Bonds - continued
Utilities - Other - 2.7%
California M-S-R Energy Authority Gas Rev., “A”, 7%, 2034		$	210,000			$	277,582
California M-S-R Energy Authority Gas Rev., “A”, 6.5%, 2039			465,000				585,244
Georgia Main Street Natural Gas, Inc., Gas Project Rev., “A”, 5%, 2022			500,000				559,910
Georgia Main Street Natural Gas, Inc., Gas Project Rev., “A”, 5.5%, 2026			285,000				319,930
Indiana Bond Bank Special Program, Gas Rev., “A”, 5.25%, 2018			440,000				516,811
Public Authority for Colorado Energy Natural Gas Purchase Rev., 6.5%, 2038			50,000				62,789
Salt Verde Financial Corp., AZ, Senior Gas Rev., 5%, 2037			2,395,000				2,489,722
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5%, 2014			455,000				484,843
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 2022			510,000				562,433
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 2023			80,000				88,574
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 2024			560,000				616,913
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 2026			905,000				995,057
Tennessee Energy Acquisition Corp., Gas Rev., “C”, 5%, 2025			450,000				481,104
						$	8,040,912
Water & Sewer Utility Revenue - 9.2%
Atlanta, GA, Water & Wastewater Rev., “A”, 6%, 2022		$	710,000			$	899,527
California Department of Water Resources, Center Valley Project Rev., “AJ”, 5%, 2035			1,990,000				2,379,622
Clairton, PA, Municipal Authority, “B”, 5%, 2037			265,000				269,691
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 5.75%, 2037			485,000				520,977
DeKalb County, GA, Water & Sewer Rev., “A”, 5.25%, 2028			1,100,000				1,325,280
DeKalb County, GA, Water & Sewer Rev., “A”, 5.25%, 2029			270,000				322,634
DeKalb County, GA, Water & Sewer Rev., “A”, 5.25%, 2030			910,000				1,079,315
DeKalb County, GA, Water & Sewer Rev., “A”, 5.25%, 2031			40,000				47,091
DeKalb County, GA, Water & Sewer Rev., “A”, 5.25%, 2041			1,965,000				2,225,854
East Bay, CA, Municipal Utility District, Water System Rev., “A”, 5%, 2028			3,200,000				3,876,832
Houston, TX, Utility System Rev., “D”, 5%, 2036			855,000				978,462
King County, WA, Sewer Rev., 5%, 2040			2,750,000				3,118,143
Madera, CA, Irrigation Financing Authority Rev., 6.5%, 2040			1,280,000				1,436,326
New York Environmental Facilities Corp., Clean Drinking Water Revolving Funds, 5%, 2024			335,000				416,278
New York Environmental Facilities Corp., Clean Drinking Water Revolving Funds, 5%, 2041			1,345,000				1,526,118
New York Environmental Facilities, “C”, 5%, 2041			1,860,000				2,139,093
New York, NY, Municipal Water Finance Authority, Water & Sewer System Rev., “AA”, 5%, 2034 (f)			3,900,000				4,539,483
North Hudson, NJ, Sewerage Authority, Gross Rev. Lease Certificates, “A”, 5%, 2042			350,000				393,323
						$	27,494,049
Total Municipal Bonds						$	417,413,910
Money Market Funds - 4.0%
MFS Institutional Money Market Portfolio, 0.15%, at Net Asset Value (v)			11,961,381			$	11,961,381
Total Investments						$	429,375,291
Other Assets, Less Liabilities - (5.3)%							(15,880,921	)
Preferred shares (issued by the fund) - (38.0)%							(113,750,000	)
Net assets applicable to common shares - 100.0%						$	299,744,370

 

(a)	Non-income producing security.

(b)	Mandatory tender date is earlier than stated maturity date.

(c)	Refunded bond.

(d)	In default. Interest and/or scheduled principal payment(s) have been missed.

(f)	All or a portion of the security has been segregated as collateral for open futures contracts.

(n)

Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate value of these securities was $7,068,011 representing 2.4% of net assets applicable to common shares.

(p)	Primary inverse floater.

 

12

---

Portfolio of Investments (unaudited) – continued

 

(q)	Interest received was less than stated coupon rate.

(u)	Underlying security deposited into special purpose trust (“the trust”) by investment banker upon creation of self-deposited inverse floaters.

(v)	Underlying affiliated fund that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end.

(z)

Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. The fund holds the following restricted securities:

 

Restricted Securities		Acquisition Date		Cost				Value
MuniMae TE Bond Subsidiary LLC, 5.4%, 2049		10/14/04			$1,000,000				$695,080
% of Net assets applicable to common shares									0.2%

The following abbreviations are used in this report and are defined:

COP		Certificate of Participation
ETM		Escrowed to Maturity
FRN		Floating Rate Note. Interest rate resets periodically and may not be the rate reported at period end.

 

Insurers
AGM		Assured Guaranty Municipal
AMBAC		AMBAC Indemnity Corp.
ASSD GTY		Assured Guaranty Insurance Co.
FGIC		Financial Guaranty Insurance Co.
FHA		Federal Housing Administration
FHLMC		Federal Home Loan Mortgage Corp.
FNMA		Federal National Mortgage Assn.
GNMA		Government National Mortgage Assn.
NATL		National Public Finance Guarantee Corp.
PSF		Permanent School Fund
SYNCORA		Syncora Guarantee Inc.

Derivative Contracts at 7/31/12

Futures Contracts Outstanding at 7/31/12

 

Description

Currency

Contracts

Value

Expiration Date

Unrealized Appreciation (Depreciation)

Liability Derivatives

Interest Rate Futures

U.S. Treasury Bond 30 yr (Short)

USD

80

$12,082,500

September - 2012

$(292,780

)

At July 31, 2012, the fund had liquid securities with an aggregate value of $290,993 to cover any commitments for certain derivative contracts.

See attached supplemental information. For more information see notes to financial statements as disclosed in the most recent semiannual or annual report.

 

13

---

Supplemental Information

7/31/12 (unaudited)

(1) Investment Valuations

Debt instruments and floating rate loans (other than short-term instruments), including restricted debt instruments, are generally valued at an evaluated or composite bid as provided by a third-party pricing service. Short-term instruments with a maturity at issuance of 60 days or less generally are valued at amortized cost, which approximates market value. Futures contracts are generally valued at last posted settlement price as provided by a third-party pricing service on the market on which they are primarily traded. Futures contracts for which there were no trades that day for a particular position are generally valued at the closing bid quotation as provided by a third-party pricing service on the market on which such futures contracts are primarily traded. Open-end investment companies are generally valued at net asset value per share. Securities and other assets generally valued on the basis of information from a third-party pricing service may also be valued at a broker/dealer bid quotation. Values obtained from third-party pricing services can utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics, and other market data.

The Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of the fund’s investments (including any fair valuation) to the adviser pursuant to valuation policies and procedures approved by the Board. If the adviser determines that reliable market quotations are not readily available, investments are valued at fair value as determined in good faith by the adviser in accordance with such procedures under the oversight of the Board of Trustees. Under the fund’s valuation policies and procedures, market quotations are not considered to be readily available for most types of debt instruments and floating rate loans and many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services. In addition, investments may be valued at fair value if the adviser determines that an investment’s value has been materially affected by events occurring after the close of the exchange or market on which the investment is principally traded (such as foreign exchange or market) and prior to the determination of the fund’s net asset value, or after the halting of trading of a specific security where trading does not resume prior to the close of the exchange or market on which the security is principally traded. The adviser generally relies on third-party pricing services or other information (such as the correlation with price movements of similar securities in the same or other markets; the type, cost and investment characteristics of the security; the business and financial condition of the issuer; and trading and other market data) to assist in determining whether to fair value and at what value to fair value an investment. The value of an investment for purposes of calculating the fund’s net asset value can differ depending on the source and method used to determine value. When fair valuation is used, the value of an investment used to determine the fund’s net asset value may differ from quoted or published prices for the same investment. There can be no assurance that the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund determines its net asset value per share.

Various inputs are used in determining the value of the fund’s assets or liabilities. These inputs are categorized into three broad levels. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fund’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes unobservable inputs, which may include the adviser’s own assumptions in determining the fair value of investments. Other financial instruments are derivative instruments not reflected in total investments, such as futures contracts. The following is a summary of the levels used as of July 31, 2012 in valuing the fund’s assets or liabilities:

 

Investments at Value		Level 1				Level 2				Level 3				Total
Municipal Bonds			$—				$417,413,910				$—				$417,413,910
Mutual Funds			11,961,381				—				—				11,961,381
Total Investments			$11,961,381				$417,413,910				$—				$429,375,291
Other Financial Instruments
Futures Contracts			$(292,780	)			$—				$—				$(292,780	)

For further information regarding security characteristics, see the Portfolio of Investments.

The following is a reconciliation of level 3 assets for which significant unobservable inputs were used to determine fair value. The fund’s policy is to recognize transfers between the levels as of the end of the period. The table presents the activity of level 3 securities held at the beginning and the end of the period.

 

		Municipal Bonds
Balance as of 10/31/11			$178,062
Accrued discounts/premiums			24
Realized gain (loss)			(225,800	)
Change in unrealized appreciation (depreciation)			213,453
Liquidation proceeds			(165,739	)
Balance as of 7/31/12			$—

 

14

---

Supplemental Information (unaudited) – continued

 

(2) Portfolio Securities

The cost and unrealized appreciation and depreciation in the value of the investments owned by the fund, as computed on a federal income tax basis, are as follows:

 

Aggregate cost			$386,336,493
Gross unrealized appreciation			$35,813,568
Gross unrealized depreciation			(9,099,882	)
Net unrealized appreciation (depreciation)			$26,713,686

The aggregate cost above includes prior fiscal year end tax adjustments, if applicable.

(3) Transactions in Underlying Affiliated Funds – Affiliated Issuers

An affiliated issuer may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. For the purposes of this report, the fund assumes the following to be an affiliated issuer:

 

Underlying Affiliated Fund		Beginning Shares/Par Amount				Acquisitions Shares/Par Amount				Dispositions Shares/Par Amount				Ending Shares/Par Amount
MFS Institutional Money Market Portfolio			832,155				65,887,678				(54,758,452	)			11,961,381
Underlying Affiliated Fund		Realized Gain (Loss)				Capital Gain Distributions				Dividend Income				Ending Value
MFS Institutional Money Market Portfolio			$—				$—				$6,312				$11,961,381

 

15

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ITEM 2.

CONTROLS AND PROCEDURES.

 

(a)

Based upon their evaluation of the effectiveness of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as conducted within 90 days of the filing date of this Form N-Q, the registrant’s principal financial officer and principal executive officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

 

(b)

There were no changes in the registrant’s internal controls 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.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2): Attached hereto.

---

Notice

A copy of the Amended and Restated Declaration of Trust, as amended, of the Registrant is on file with the Secretary of State of The Commonwealth of Massachusetts and notice is hereby given that this instrument is executed on behalf of the Registrant by an officer of the Registrant as an officer and not individually and the obligations of or arising out of this instrument are not binding upon any of the Trustees or shareholders individually, but are binding only upon the assets and property of the respective constituent series of the Registrant.

---

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: MFS MUNICIPAL INCOME TRUST

 

By (Signature and Title)*		JOHN M. CORCORAN
		John M. Corcoran, President

Date: September 18, 2012

Pursuant to the requirements of the Securities 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 (Signature and Title)*		JOHN M. CORCORAN
		John M. Corcoran, President
		(Principal Executive Officer)

Date: September 18, 2012

 

By (Signature and Title)*		DAVID L. DILORENZO
		David L. DiLorenzo, Treasurer
		(Principal Financial Officer and Accounting Officer)

Date: September 18, 2012

 

*	Print name and title of each signing officer under his or her signature.