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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANY
Investment Company Act file number 811-06591
Invesco Quality Municipal Income Trust
 
(Exact name of registrant as specified in charter)
1555 Peachtree Street, N.E., Atlanta, Georgia 30309
 
(Address of principal executive offices)     (Zip code)
Philip A. Taylor 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: 10/31
Date of reporting period: 07/31/10
 
 

 

 

TABLE OF CONTENTS

Item 1. Schedule of Investments
Item 2. Controls and Procedures
Item 3. Exhibits
EXHIBIT INDEX
Item 1. Schedule of Investments.

 

 

Invesco Quality Municipal Income Trust
Quarterly Schedule of Portfolio Holdings July 31, 2010
(INVESCO LOGO)
invesco.com/us           MS-CE-QMINC-QTR-1 07/10            Invesco Advisers, Inc.

 

 

Schedule of Investments
July 31, 2010 (unaudited)
                                         
                            Principal        
    Interest     Maturity             Amount        
    Rate     Date           (000)     Value  
 
Municipal Obligations-157.8%
                                        
Alaska-0.8%
                                        
Northern Tobacco Securitization Corp., Asset Backed Ser 2006 A
     5.00 %     06/01/46             $ 4,000     $ 2,586,520  
 
                                      
Arizona-5.2%
                                        
Arizona State Transportation Board, Highway Refg Ser 2002 A
     5.25       07/01/19               2,000       2,182,240  
Maricopa County Pollution Control, Arizona Public Service Co., Ser 2009 A
     6.00       05/01/29               650       700,095  
Phoenix Civic Improvement Corp., Airport Ser 2002 B (AMT) (NATL-RE & FGIC Insd) (a)
     5.25       07/01/32               3,000       3,006,900  
Phoenix Civic Improvement Corp., Jr Lien Water Ser 2002 (NATL-RE & FGIC Insd) (a)
     5.00       07/01/26               3,800       3,924,450  
Salt River Project Agricultural Improvement & Power District, 2002 Ser B (b)
     5.00       01/01/31               6,000       6,133,380  
 
                                      
 
                                     15,947,065  
 
                                      
California-24.1%
                                        
Alhambra Unified School District, Ser 2009 B (AGC Insd) (a)(c)
     0.00       08/01/35               1,575       331,585  
Alhambra Unified School District, Ser 2009 B (AGC Insd) (a)(c)
     0.00       08/01/36               2,545       500,881  
California Health Facilities Financing Authority, Cedars-Sinai Medical Center Ser 2005
     5.00       11/15/34               700       690,263  
California Health Facilities Financing Authority, Kaiser Permanente Ser 2006 A
     5.25       04/01/39               2,000       1,993,960  
California Infrastructure & Economic Development Bank, Bay Area Toll Bridges 1st Lien Ser 2003 (AMBAC Insd) (a)(b)
     5.00       07/01/36               5,000       6,063,450  
California Infrastructure & Economic Development Bank, The Scripps Research Institute Ser 2005 A
     5.00       07/01/29               3,000       3,104,220  
California Statewide Communities Development Authority, Baptist University Ser 2007 A
     5.40       11/01/27               4,000       3,532,040  
California Statewide Communities Development Authority, John Muir Health Ser 2006 A
     5.00       08/15/32               5,000       4,914,650  
City & County of San Francisco, Laguna Honda Hospital Refg Ser 2008-R3 (AGC Insd) (a)(b)
     5.00       06/15/28               960       1,000,368  
City of Los Angeles, Ser 2004 A (NATL-RE Insd) (a)
     5.00       09/01/24               4,000       4,315,760  
County of San Diego, Burnham Institute for Medical Research Ser 2006 (COP)
     5.00       09/01/34               1,000       873,410  
Dry Creek Joint Elementary School District, Election 2008 Ser 2009 (c)
     0.00       08/01/40               4,685       661,943  
Dry Creek Joint Elementary School District, Election 2008 Ser 2009 (c)
     0.00       08/01/41               4,535       600,298  
Golden State Tobacco Securitization Corp., Enhanced Asset Backed Ser 2005 A (AMBAC Insd) (a)
     5.00       06/01/29               6,000       5,766,000  
Golden State Tobacco Securitization Corp., Enhanced Asset Backed Ser 2007 A-1
     5.125       06/01/47               4,600       2,970,036  
Golden State Tobacco Securitization Corp., Enhanced Asset Backed Ser 2007 A-1
     5.75       06/01/47               1,150       819,099  
Moreland School District, Ser 2014 C (AMBAC Insd) (a)(c)
     0.00       08/01/29               1,745       534,720  
Oak Grove School District, Election 2008 Ser A (c)
     0.00       08/01/28               1,270       442,735  
Port of Oakland, Ser 2002 L (AMT) (NATL-RE & FGIC Insd) (a)(d)
     5.00       11/01/12               110       121,286  
Port of Oakland, Ser 2002 L (AMT) (NATL-RE & FGIC Insd) (a)(d)
     5.00       11/01/12               445       490,657  
Port of Oakland, Ser 2002 L (AMT) (NATL-RE & FGIC Insd) (a)
     5.00       11/01/21               890       900,173  
Port of Oakland, Ser 2002 L (AMT) (NATL-RE & FGIC Insd) (a)
     5.00       11/01/32               3,555       3,272,520  
San Diego County Water Authority, Ser 2002 A (COP) (NATL-RE Insd) (a)
     5.00       05/01/27               3,720       3,880,853  
San Francisco City & County Public Utilities Commission, Ser 2009 A
     5.00       11/01/27               2,500       2,747,400  
See accompanying notes which are an integral part of this schedule.
Invesco Quality Municipal Income Trust

 

 

                                         
                            Principal        
    Interest     Maturity             Amount        
    Rate     Date           (000)     Value  
 
Silicon Valley Tobacco Securitization Authority Tobacco Settlement, Santa Clara Tobacco Securitization Corp. Ser 2007 (c)
     0.00 %     06/01/36             $ 16,000     $ 1,558,560  
State of California, Ser 2004 A
     5.00       07/01/16               4,000       4,112,440  
State of California, Various Purpose Dtd 05/01/03
     5.25       02/01/19               5,000       5,436,200  
Tobacco Securitization Authority of Northern California, Sacramento County Tobacco Securitization Corp. Ser 2006 A-1
     5.00       06/01/37               5,000       3,668,000  
Twin Rivers Unified School District, Ser 2009 (BANs) (c)
     0.00       04/01/14               1,350       1,223,694  
University of California, Ser 2007-J (AGM Insd) (a)(b)
     4.50       05/15/31               2,760       2,778,740  
University of California, Ser 2007-J (AGM Insd) (a)(b)
     4.50       05/15/35               2,240       2,198,829  
University of California, Ser 2009 O
     5.25       05/15/39               500       538,800  
William S. Hart Union High School District, Ser 2009 A (c)
     0.00       08/01/32               10,100       2,530,858  
 
                                      
 
                                     74,574,428  
 
                                      
Colorado-3.2%
                                        
Colorado Educational & Cultural Facilities Authority, Peak to Peak Charter School Refg & Impr Ser 2004 (XLCA Insd) (a)
     5.25       08/15/34               2,000       2,001,380  
Colorado Health Facilities Authority, Adventist/Sunbelt Ser 2006 D
     5.00       07/01/39               2,000       2,035,940  
County of Boulder, University Corp. for Atmospheric Research Ser 2002 (NATL-RE Insd) (a)
     5.375       09/01/18               1,750       1,885,100  
County of Boulder, University Corp. for Atmospheric Research Ser 2002 (NATL-RE Insd) (a)
     5.375       09/01/21               1,750       1,878,887  
County of Pitkin, Aspen Skiing Company Project Ser 1984 A (e)(f)(g)
     0.24       04/01/16               500       500,000  
Denver Convention Center Hotel Authority, Refg Ser 2006 (XLCA Insd) (a)
     5.00       12/01/30               1,590       1,432,113  
Public Authority for Colorado Energy, Natural Gas Ser 2008
     6.25       11/15/28               265       284,690  
 
                                      
 
                                     10,018,110  
 
                                      
Connecticut-1.7%
                                        
Connecticut Housing Finance Authority, SubSer A-2 (AMT)
     5.15       05/15/38               5,000       5,093,900  
 
                                      
Delaware-0.3%
                                        
County of New Castle, Newark Charter School Inc. Ser 2006
     5.00       09/01/36               1,000       854,920  
 
                                      
District of Columbia-1.9%
                                        
District of Columbia Ballpark, Ser 2006 B-1 (NATL-RE & FGIC Insd) (a)
     5.00       02/01/31               6,000       6,002,820  
 
                                      
Florida-8.2%
                                        
Broward County School Board, Ser 2001 A (COP) (AGM Insd) (a)
     5.00       07/01/26               2,000       2,017,020  
County of Miami-Dade, Building Better Communities Program Ser 2009 B-1
     6.00       07/01/38               2,000       2,239,620  
County of Miami-Dade, Miami Int’l Airport Ser 2009 A (AGC Insd) (a)
     5.00       10/01/25               1,250       1,364,650  
Highlands County Health Facilities Authority, Adventist Health/Sunbelt Ser 2006 C (d)
     5.25       11/15/16               75       90,572  
Highlands County Health Facilities Authority, Adventist Health/Sunbelt Ser 2006 C
     5.25       11/15/36               2,925       2,963,844  
Jacksonville Electric Authority, St Johns Power Park Refg Issue 2 Ser 17
     5.00       10/01/18               3,300       3,445,266  
Palm Beach County Solid Waste Authority, Ser 2009 (BHAC Insd) (a)
     5.50       10/01/23               1,200       1,387,308  
South Miami Health Facilities Authority, Baptist Health South Florida Ser 2007
     5.00       08/15/42               12,000       11,904,960  
 
                                      
 
                                     25,413,240  
 
                                      
Georgia-3.8%
                                        
City of Atlanta, Airport Ser 2004 J (AGM Insd) (a)
     5.00       01/01/34               2,000       2,026,400  
Georgia State Road & Tollway Authority, Ser 2003
     5.00       10/01/22               6,000       6,395,580  
Georgia State Road & Tollway Authority, Ser 2003
     5.00       10/01/23               3,000       3,185,610  
 
                                      
 
                                     11,607,590  
 
                                      
See accompanying notes which are an integral part of this schedule.
Invesco Quality Municipal Income Trust

 

 

                                         
                            Principal        
    Interest     Maturity             Amount        
    Rate     Date           (000)     Value  
 
Hawaii-4.3%
                                        
City & County of Honolulu, Ser 2003 A (NATL-RE Insd) (a)(b)
     5.25 %     03/01/26             $ 10,000     $ 10,599,700  
Hawaii Pacific Health, Ser B
     5.75       07/01/40               770       774,581  
State of Hawaii, Airports Refg Ser A
     5.00       07/01/39               1,925       1,942,922  
 
                                      
 
                                     13,317,203  
 
                                      
Idaho-1.2%
                                        
Idaho Housing & Finance Association, Federal Highway Trust, Ser 2008 A (RANs) (AGC Insd) (a)
     5.25       07/15/23               2,600       2,907,684  
Idaho Housing & Finance Association, Ser 1992 E (AMT)
     6.75       07/01/12               15       15,043  
Idaho Housing & Finance Association, Ser 2000 E (AMT)
     6.00       01/01/32               610       644,654  
 
                                      
 
                                     3,567,381  
 
                                      
Illinois-9.5%
                                        
City of Chicago, O’ Hare Int’l Airport Third Lien Ser 2003 B-2 (AMT) (AGM Insd) (a)
     5.75       01/01/23               4,000       4,194,120  
City of Chicago, Project & Refg Ser 2007 A (CR) (AGM & FGIC Insd) (a)(b)(h)
     5.00       01/01/37               7,250       7,401,235  
City of Granite City, Waste Management, Inc. Project (AMT)
     3.50       05/01/27               2,200       2,212,276  
Illinois Finance Authority, Resurrection Health Center, Refg Ser 2009
     6.125       05/15/25               1,650       1,702,750  
Illinois Finance Authority, Rush University Medical Center Obligated Group Ser 2009 A
     7.25       11/01/38               645       729,966  
Illinois Finance Authority, Swedish Covenant Hospital Ser 2010 A
     5.75       08/15/29               2,360       2,387,565  
Illinois Finance Authority, Swedish Covenant Hospital Ser 2010 A
     6.00       08/15/38               1,235       1,250,153  
Illinois Finance Authority, Northwestern Memorial Hospital, Revenue Bonds, Ser 2009 B
     5.00       08/15/16               830       920,130  
State of Illinois, First Ser 2002 (NATL-RE Insd) (a)
     5.375       07/01/20               6,000       6,301,560  
Village of Schaumburg, Ser 2004 B (NATL-RE & FGIC Insd) (a)
     5.25       12/01/34               2,000       2,127,740  
 
                                      
 
                                     29,227,495  
 
                                      
Indiana-5.2%
                                        
Indiana Bond Bank, Revolving Fund Ser 2001 A
     5.00       02/01/23               10,000       10,749,200  
Indiana Health & Educational Facilities Financing Authority, Clarian Health Ser 2006 A
     5.25       02/15/40               3,040       2,999,477  
Marion County Convention & Recreational Facilities Authority, Refg Ser 2003 A (AMBAC Insd) (a)
     5.00       06/01/21               1,400       1,463,210  
Rockport, Indian Michigan Power Company Project Refg Ser 2009 B
     6.25       06/01/25               820       914,374  
 
                                      
 
                                     16,126,261  
 
                                      
Iowa-1.3%
                                        
State of Iowa, LJOBS Program Ser 2009 A (b)(h)
     5.00       06/01/25               2,120       2,344,529  
State of Iowa, LJOBS Program Ser 2009 A (b)(h)
     5.00       06/01/26               1,590       1,743,260  
 
                                      
 
                                     4,087,789  
 
                                      
Kansas-0.3%
                                        
Kansas Development Finance Authority Hospital Revenue, Adventist Health System Sunbelt Obligated Group Ser 2009 C
     5.50       11/15/29               730       790,648  
 
                                      
Kentucky-0.3%
                                        
Kentucky Economic Development Finance Authority, Owensboro Medical Health System Ser 2010 A
     6.50       03/01/45               1,000       1,050,280  
 
                                      
Louisiana-0.5%
                                        
Louisiana Offshore Terminal Authority, Revenue Bonds, Deepwater Port Ser 2007 B-2
     4.30       10/01/37               1,500       1,527,810  
 
                                      
Maryland-1.4%
                                        
County of Baltimore, Oak Crest Village Ser 2007 A
     5.00       01/01/37               1,105       1,001,384  
Maryland Economic Development Corp., Ser B
     5.75       06/01/35               1,080       1,113,448  
See accompanying notes which are an integral part of this schedule.
Invesco Quality Municipal Income Trust

 

 

                                         
                            Principal        
    Interest     Maturity             Amount        
    Rate     Date           (000)     Value  
 
Maryland Health & Higher Educational Facilities Authority, King Farm Presbyterian Community 2006 Ser B
     5.00 %     01/01/17             $ 2,385     $ 2,289,981  
 
                                      
 
                                     4,404,813  
 
                                      
Massachusetts-1.0%
                                        
Massachusetts Health & Educational Facilities Authority, Berklee College Music Ser A
     5.00       10/01/32               1,100       1,121,835  
Massachusetts Health & Educational Facilities Authority, Boston College Ser M-2
     5.50       06/01/30               1,600       1,919,040  
 
                                      
 
                                     3,040,875  
 
                                      
Michigan-3.3%
                                        
County of Wayne, Detroit Metropolitan Wayne County Airport Refg Ser 2002 D (AMT) (NATL-RE & FGIC Insd) (a)
     5.50       12/01/17               3,000       3,082,380  
Michigan Strategic Fund, Detroit Edison Co. Ser 2001 C (AMT)
     5.65       09/01/29               5,000       5,009,600  
Wayne State University, Refg Ser 2008 (AGM Insd) (a)
     5.00       11/15/25               1,855       1,990,118  
 
                                      
 
                                     10,082,098  
 
                                      
Minnesota-0.7%
                                        
Western Minnesota Municipal Power Agency, Ser 2003 A (NATL-RE Insd) (a)
     5.00       01/01/30               2,000       2,026,720  
 
                                      
Missouri-0.4%
                                        
Missouri Housing Development Commission, Homeownership Ser 2000 B-1 (AMT)
     6.25       03/01/31               120       123,437  
Missouri State Health & Educational Facilities Authority, Lutheran Senior Services Ser 2005 A
     5.375       02/01/35               1,125       1,069,920  
 
                                      
 
                                     1,193,357  
 
                                      
Montana-1.3%
                                        
City of Forsyth, Pollution Control Revenue Ser A
     5.00       05/01/33               1,600       1,636,032  
Montana Board of Housing, 2000 Ser B (AMT)
     6.00       12/01/29               2,245       2,304,582  
 
                                      
 
                                     3,940,614  
 
                                      
Nevada-4.5%
                                        
County of Clark, Airport Sub Lien Ser 2004 A-1 (AMT) (NATL-RE & FGIC Insd) (a)
     5.50       07/01/20               2,000       2,086,380  
County of Clark, Jet Aviation Fuel Tax Ser 2003 C (AMT) (AMBAC Insd) (a)
     5.375       07/01/19               1,000       1,045,780  
County of Clark, Jet Aviation Fuel Tax Ser 2003 C (AMT) (AMBAC Insd) (a)
     5.375       07/01/20               1,100       1,144,792  
County of Clark, Jet Aviation Fuel Tax Ser 2003 C (AMT) (AMBAC Insd) (a)
     5.375       07/01/22               2,000       2,067,200  
County of Clark, McCarran International Airport Ser 2010 A
     5.125       07/01/34               1,000       1,007,390  
Las Vegas Valley Water District, Water Impr Refg Ser 2003 A (NATL-RE & FGIC Insd) (a)
     5.25       06/01/20               5,345       5,769,233  
Las Vegas, Redevelopment Agency, Ser A
     6.25       06/15/16               640       713,280  
 
                                      
 
                                     13,834,055  
 
                                      
New Hampshire-0.2%
                                        
New Hampshire Business Finance Authority, Ser 2009 (AMT)
     7.125       07/01/27               655       688,353  
 
                                      
New Jersey-9.3%
                                        
New Jersey Economic Development Authority, MSU Student Housing, Provident Group Montclair LLC, Ser 2010
     5.75       06/01/31               935       954,635  
New Jersey Economic Development Authority, School Facilities Construction Ser N-1 (AMBAC Insd) (a)
     5.50       09/01/24               2,000       2,300,760  
New Jersey St Housing & Mortgage Finance Agency, Home Buyer Ser 2000 CC (AMT) (NATL-RE Insd) (a)
     5.875       10/01/31               1,295       1,296,917  
New Jersey State Turnpike Authority, Ser 2003 A (NATL-RE & FGIC Insd) (a)
     5.00       01/01/27               1,500       1,547,580  
New Jersey Transportation Trust Fund Authority, 1999 Ser A
     5.75       06/15/20               5,000       5,873,350  
Passaic Valley Sewage Commissioners, Ser F (NATL-RE & FGIC Insd) (a)
     5.00       12/01/20               10,000       10,265,500  
Tobacco Settlement Financing Corp., Ser 2007-1 A
     4.625       06/01/26               5,000       4,119,900  
See accompanying notes which are an integral part of this schedule.
Invesco Quality Municipal Income Trust

 

 

                                         
                            Principal        
    Interest     Maturity             Amount        
    Rate     Date           (000)     Value  
 
Tobacco Settlement Financing Corp., Ser 2007-1 B (c)
     0.00 %     06/01/41             $ 6,000     $ 299,520  
University of Medicine & Dentistry of New Jersey, Ser 2004 (COP) (NATL-RE Insd) (a)
     5.25       06/15/23               2,000       2,055,620  
 
                                      
 
                                     28,713,782  
 
                                      
New Mexico-0.4%
                                        
City of Farmington, Pollution Control Ref, Public Service San Juan Ser 2010 C
     5.90       06/01/40               1,250       1,264,950  
 
                                      
New York-17.1%
                                        
Brooklyn Arena Local Development Corp., Ser 2009
     6.25       07/15/40               820       841,566  
Brooklyn Arena Local Development Corp., Ser 2009
     6.375       07/15/43               340       350,203  
City of New York, 2009 Subser A-1 (b)
     5.25       08/15/27               2,380       2,611,979  
City of New York, 2009 Subser A-1 (b)
     5.25       08/15/28               2,380       2,599,936  
Metropolitan Transportation Authority, Transportation Refg Ser 2002 A (NATL-RE & FGIC Insd) (a)
     5.00       11/15/25               10,000       10,253,600  
New York City Municipal Water Finance Authority, Ser 2002 A
     5.375       06/15/19               3,500       3,793,720  
New York City Municipal Water Finance Authority, Ser 2003 A
     5.00       06/15/35               3,000       3,088,890  
New York City Municipal Water Finance Authority, Ser 2006 B
     5.00       06/15/26               5,000       5,124,500  
New York City Transitional Finance Authority, 2010 Subser A-1 (b)
     5.00       05/01/28               2,040       2,227,068  
New York City Transitional Finance Authority, 2010 Subser A-1 (b)
     5.00       05/01/29               1,635       1,776,035  
New York City Transitional Finance Authority, 2010 Subser A-1 (b)
     5.00       05/01/30               1,635       1,763,429  
New York City Trust for Cultural Resources, Museum of Modern Art Refg Ser 2008 1A (b)
     5.00       04/01/26               1,935       2,142,509  
New York City Trust for Cultural Resources, Museum of Modern Art Refg Ser 2008 1A (b)
     5.00       04/01/27               2,815       3,097,936  
New York State Dormitory Authority, New York University (AMBAC Insd) (a)
     5.50       05/15/29               1,100       1,228,744  
Seneca Nation Indians, Ser 2007 A (i)
     5.00       12/01/23               2,000       1,648,340  
Tobacco Settlement Financing Corp., Ser 2003 B-1C
     5.50       06/01/17               5,000       5,168,450  
Triborough Bridge & Tunnel Authority, Refg 2002 E (NATL-RE Insd) (a)(b)
     5.00       11/15/32               5,000       5,223,050  
 
                                      
 
                                     52,939,955  
 
                                      
North Carolina-1.5%
                                        
City of Charlotte, Water/Sewer Ser 2001
     5.125       06/01/26               4,500       4,669,380  
 
                                      
North Dakota-0.8%
                                        
County of Ward, Trinity Ser 2006
     5.125       07/01/29               2,750       2,589,483  
 
                                      
Ohio-6.2%
                                        
American Municipal Power-Ohio Inc., Prairie State Energy Campus Ser 2008 A (AGC Insd) (a)(b)
     5.25       02/15/33               5,100       5,350,512  
County of Cuyahoga, Cleveland Clinic Ser 2003 A
     6.00       01/01/32               5,370       5,750,894  
County of Lorain, Catholic Healthcare Partners Ser 2001 A
     5.625       10/01/17               3,000       3,108,810  
Ohio State Higher Educational Facilities, Summa Health Systems Ser 2010
     5.75       11/15/40               2,270       2,271,453  
Ohio State University, General Receipts Ser 2002 A
     5.125       12/01/31               2,000       2,092,900  
Ohio State Water Development Authority, Pollution Control Facilities Ser 2009 A
     5.875       06/01/33               410       453,296  
 
                                      
 
                                     19,027,865  
 
                                      
Oklahoma-0.4%
                                        
Oklahoma Development Finance Authority, Great Plains Regional Medical Center Ser 2007
     5.125       12/01/36               1,500       1,300,590  
 
                                      
Oregon-0.6%
                                        
Oregon State Department of Administrative Services, Ser 2009 A
     5.25       04/01/24               685       788,866  
Warm Springs Reservation Confederated Tribe, Pelton Round Burre Tribal, Ser 2009 B
     6.375       11/01/33               1,145       1,184,789  
 
                                      
 
                                     1,973,655  
 
                                      
See accompanying notes which are an integral part of this schedule.
Invesco Quality Municipal Income Trust

 

 

                                         
                            Principal        
    Interest     Maturity             Amount        
    Rate     Date           (000)     Value  
 
Pennsylvania-1.0%
                                        
Allegheny County Hospital Development Authority, West Penn Allegheny Health Ser 2007 A
     5.375 %     11/15/40             $ 2,000     $ 1,495,900  
Pennsylvania Turnpike Commission, Ser 2010 B-2 (c)
     0.00       12/01/28               1,350       1,014,215  
Pennsylvania Turnpike Commission, Ser 2010 B-2 (c)
     0.00       12/01/34               800       597,192  
 
                                      
 
                                     3,107,307  
 
                                      
Puerto Rico-3.0%
                                        
Puerto Rico Electric Power Authority, Ser 2010 CCC
     5.25       07/01/27               1,500       1,554,510  
Puerto Rico Electric Power Authority, Ser XX
     5.25       07/01/40               1,300       1,313,468  
Puerto Rico Sales Tax Financing Corp., Ser 2009 A
     5.00       08/01/11               1,375       1,440,725  
Puerto Rico Sales Tax Financing Corp., Ser 2010 A
     5.375       08/01/39               1,225       1,243,204  
Puerto Rico Sales Tax Financing Corp., Ser 2010 A
     5.50       08/01/42               1,400       1,430,646  
Puerto Rico Sales Tax Financing Corp., Ser 2010 C
     5.25       08/01/41               2,350       2,361,797  
 
                                      
 
                                     9,344,350  
 
                                      
South Carolina-5.4%
                                        
Charleston Educational Excellence Finance Corp., Charleston County School District Ser 2005
     5.25       12/01/29               3,000       3,144,630  
County of Richland, Environmental Improvement, Paper Co. Ser 2007 A
     4.60       09/01/12               345       363,851  
Lexington County, Revenue Bonds, Ser 2007 A
     5.00       11/01/16               70       78,093  
South Carolina State Public Service Authority, Refg Ser 2002 D (AGM Insd) (a)
     5.00       01/01/20               5,000       5,415,450  
South Carolina State Public Service Authority, Santee Cooper Ser 2003 A (AMBAC Insd) (a)(b)
     5.00       01/01/22               7,000       7,621,670  
 
                                      
 
                                     16,623,694  
 
                                      
Texas-17.4%
                                        
Alliance Airport Authority, Federal Express Corp. Refg Ser 2006 (AMT)
     4.85       04/01/21               2,000       1,995,740  
Bexar County Health Facilities Development Corp.
     6.20       07/01/45               1,045       1,066,652  
City of Arlington, Special Tax Ser 2009
     5.00       08/15/28               2,500       2,572,600  
City of Austin, Water & Wastewater Refg Ser 2001 (AGM Insd) (a)
     5.125       05/15/27               2,950       3,019,354  
City of Houston, Airport Sub Lien Ser 2000 A (AMT) (AGM Insd) (a)
     5.875       07/01/17               6,000       6,018,300  
City of Houston, Combined Utility First Lien Refg 2004 Ser A (NATL-RE & FGIC Insd) (a)
     5.25       05/15/23               5,120       5,610,752  
City of Houston, Ser 2009 A
     5.00       03/01/27               2,000       2,193,560  
City of Houston, Ser A 2001 (AMT) (AGM Insd) (a)
     5.625       07/01/30               5,000       5,001,700  
City of San Antonio, (NATL-RE & FGIC Insd) (a)
     5.00       05/15/26               8,960       9,183,373  
County of Bexar, Ser 2009 A
     5.00       06/15/35               2,500       2,661,075  
County of Harris, Ser 2007 C (AGM Insd) (a)
     5.25       08/15/31               2,380       2,785,528  
Harris County Industrial Development Corp., Deer Park Refinancing Project
     5.00       02/01/23               600       622,998  
North Texas Tollway Authority, Refg Ser 2008 D (AGC Insd) (a)(c)
     0.00       01/01/28               8,600       3,387,884  
North Texas Tollway Authority, Refg Ser 2008 D (AGC Insd) (a)(c)
     0.00       01/01/31               1,650       541,679  
Tarrant County Cultural Education Facilities Finance Corp., Air Force Village II Inc. Ser 2007
     5.125       05/15/37               875       761,985  
Texas Private Activity Bond Surface Transportation Corp., Senior Lien Ser 2009
     6.875       12/31/39               915       953,595  
University of Houston, Ser 2008 (AGM Insd) (a)(b)
     5.00       02/15/33               5,100       5,354,592  
 
                                      
 
                                     53,731,367  
 
                                      
Vermont-0.7%
                                        
Vermont Economic Development Authority, Wake Robin Corp Ser 2006 A
     5.375       05/01/36               2,500       2,175,575  
 
                                      
Virgin Islands-0.4%
                                        
Virgin Islands Public Finance Authority, Ser 2010 A
     5.00       10/01/25               1,125       1,143,315  
 
                                      
Virginia-0.6%
                                        
Fairfax County Economic Development Authority, Goodwin House, Inc. Ser 2007
     5.125       10/01/42               2,000       1,958,180  
 
                                      
See accompanying notes which are an integral part of this schedule.
Invesco Quality Municipal Income Trust

 

 

                                         
                            Principal        
    Interest     Maturity             Amount        
    Rate     Date           (000)     Value  
 
Washington-8.4%
                                        
Energy Northwest, Ser 2002 A (NATL-RE Insd) (a)
     5.75 %     07/01/18             $ 5,000     $ 5,431,350  
Grant County Public Utility District No. 2, Electric Refg Ser 2001 H (AGM Insd) (a)
     5.375       01/01/18               5,000       5,281,200  
Port of Seattle, Passenger Facility Ser 1998 A (NATL-RE Insd) (a)
     5.00       12/01/23               2,510       2,515,371  
Spokane County School District No. 81, Ser 2005 (NATL-RE Insd) (a)
     5.125       06/01/23               2,500       2,700,200  
State of Washington, Various Purpose Ser 2010 A (b)
     5.00       08/01/29               3,725       4,073,511  
State of Washington, Various Purpose Ser 2010 A (b)
     5.00       08/01/30               3,915       4,250,163  
Washington Health Care Facilities Authority, Providence Health Ser 2006 C (AGM Insd) (a)
     5.25       10/01/33               1,500       1,574,475  
 
                                      
 
                                     25,826,270  
 
                                      
Total Investments (Cost $477,907,491)
     157.8 %           $ 487,394,063  
Other Assets Less Liabilities
     3.7               11,381,280  
Floating Rate Note and Dealer Trusts Obligations Related to Securities Held
                        
Notes with interest rates ranging from 0.26% to 0.30% at 07/31/10 and contractual maturities of collateral ranging from 01/01/22 to 01/01/37 (See Note 1D) (j)
     (16.9 )             (52,295,000 )
Preferred Shares of Beneficial Interest
     (44.6 )             (137,645,010 )
 
                                    
Net Assets Applicable to Common Shareholders
     100.0 %           $ 308,835,333  
 
                                    
Investment Abbreviations
 
AGC   Assured Guaranty Corporation
 
AGM   Assured Guaranty Municipal Corporation
 
AMBAC   AMBAC Assurance Corporation
 
AMT   Alternative Minimum Tax
 
BANs   Bond Anticipation Notes
 
BHAC   Berkshire Hathaway Assurance Corporation
 
COP   Certificates of Participation
 
CR   Custodial Receipts
 
FGIC   Financial Guaranty Insurance Company
 
Insd   Insured
 
Jr   Junior
 
NATL-RE   National Public Finance Guarantee Corporation
 
RANs   Revenue Anticipation Notes
 
Refg   Refunding
 
Ser   Series
 
Sub   Subordinated
 
XLCA   XL Capital Assurance Inc
 
    Notes to Schedule of Investments:
 
(a)   Principal and/or interest payments are secured by the bond insurance company listed.
 
(b)   Underlying security related to Special Purpose Trust entered into by the Fund (See Note 1D).
 
(c)   Capital appreciation bond.
 
(d)   Advance refunded; secured by an escrow fund of U.S. Government obligations or other highly rated collateral.
 
(e)   Demand security payable upon demand by the Fund at specified time intervals no greater than thirteen months. Interest rate is redetermined periodically. Rate shown is the rate in effect on July 31, 2010.
 
(f)   Security is considered a cash equivalent.
 
(g)   Principal and interest payments are fully enhanced by a letter of credit from the bank listed or a predecessor bank, branch or subsidiary.
 
(h)   Security is subject to a shortfall agreement which may require the Trust to pay amounts to a counterparty in the event of a significant decline in the market value of the security underlying the inverse floater. In case of a shortfall, the maximum potential amount of payments the Trust could ultimately be required to make under the agreement is $7,335,000. However, such shortfall payment would be reduced by the proceeds from the sale of the security underlying the inverse floater.
 
(i)   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 value of this security at July 31, 2010 represented 0.5% of the Fund’s Net Assets.
 
(j)   Floating rate note obligations related to securities held. The interest rates shown reflect the rates in effect at July 31, 2010. At July 31, 2010, the Fund’s investments with a value of $88,355,881 are held by the Dealer Trusts and serve as collateral for the $52,295,000 in floating rate note and dealer trust obligations outstanding at that date.
See accompanying notes which are an integral part of this schedule.
Invesco Quality Municipal Income Trust

 

 

Notes to Quarterly Schedule of Portfolio Holdings
July 31, 2010
(Unaudited)
NOTE 1 — Significant Accounting Policies
A.   Security Valuations — Securities, including restricted securities, are valued according to the following policy.
     Securities are fair valued using an evaluated quote provided by an independent pricing service approved by the Board of Trustees. 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, yield, quality, coupon rate, maturity, type of issue, 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. Securities with a demand feature exercisable within one to seven days are valued at par. 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 principal payments.
     Securities for which market quotations either 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. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on transferability or disposition; trading in similar securities by the same issuer or comparable companies; relevant political, economic or issuer specific news; and other relevant factors under the circumstances.
     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. 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. Dividend income is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
     The Fund may periodically participate in litigation related to Fund investments. As such, the Fund 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 realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’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 Fund 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.
Invesco Quality Municipal Income Trust

 

 

D.   Floating Rate Obligations Related to Securities Held — The Fund enters into transactions in which it transfers to Special Purpose Trusts established by a Broker Dealer (“Dealer Trusts”) fixed rate bonds in exchange for cash and residual interests in the Dealer Trusts’ assets and cash flows, which are in the form of inverse floating rate investments. The Dealer Trusts fund the purchases of the fixed rate bonds by issuing floating rate notes to third parties and allowing the Fund to retain residual interest in the bonds. The Fund may enter into shortfall agreements with the Dealer Trusts which commit the Fund to pay the Dealer Trusts, in certain circumstances, the difference between the liquidation value of the fixed rate bonds held by the Dealer Trusts and the liquidation value of the floating rate notes held by third parties, as well as any shortfalls in interest cash flows. The residual interests held by the Fund (inverse floating rate investments) include the right of the Fund (1) to cause the holders of the floating rate notes to tender their notes at par at the next interest rate reset date, and (2) to transfer the municipal bond from the Dealer Trusts to the Fund, thereby collapsing the Dealer Trusts. The Fund accounts for the transfer of bonds to the Dealer Trusts as secured borrowings, with the securities transferred remaining in the Fund’s investment assets, and the related floating rate notes reflected as Fund liabilities under the caption “Floating rate note and dealer trust obligations” on the Statement of Assets and Liabilities. The Fund records the interest income from the fixed rate bonds under the caption “Interest” and records the expenses related to floating rate obligations and any administrative expenses of the Dealer Trusts under the caption “Interest and residual trust expenses” on the Statement of Operations. The floating rate notes issued by the Dealer Trusts have interest rates that reset weekly and the floating rate note holders have the option to tender their notes to the Dealer Trusts for redemption at par at each reset date.
Invesco Quality Municipal Income Trust

 

 

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 Fund’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 July 31, 2010. 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.
                                 
    Level 1   Level 2   Level 3   Total
 
Municipal Obligations
   $  —     $ 487,394,063     $  —     $ 487,394,063  
 
NOTE 3 — Investment Securities
Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
         
Aggregate unrealized appreciation of investment securities
   $ 20,633,009  
Aggregate unrealized (depreciation) of investment securities
     (10,844,610 )
 
Net unrealized appreciation of investment securities
   $ 9,788,399  
 
Cost of investments for tax purposes is $477,605,664.
        
Invesco Quality Municipal Income Trust

 

 

Item 2. Controls and Procedures.
  (a)   As of September 16, 2010, 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 , September 16, 2010, 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 Quality Municipal Income Trust
         
By:
  /s/ Philip A. Taylor    
 
 
 
Philip A. Taylor 		   
 
  Principal Executive Officer    
Date: September 29, 2010
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/ Philip A. Taylor    
 
 
 
Philip A. Taylor 		   
 
  Principal Executive Officer    
Date: September 29, 2010
         
By:
  /s/ Sheri Morris    
 
       
 
  Sheri Morris    
 
  Principal Financial Officer    
Date: September 29, 2010

 

 

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.