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 811-04841

MFS MUNICIPAL INCOME TRUST

(Exact name of registrant as specified in charter)

111 Huntington Avenue, Boston, Massachusetts 02199

(Address of principal executive offices) (Zip code)

Susan S. Newton

Massachusetts Financial Services Company

111 Huntington Avenue

Boston, Massachusetts 02199

(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: January 31, 2014

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ITEM 1.

SCHEDULE OF INVESTMENTS.

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QUARTERLY REPORT

January 31, 2014

 

 

MFS® MUNICIPAL INCOME TRUST

 

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PORTFOLIO OF INVESTMENTS

1/31/14 (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 - 138.3%
Airport Revenue - 2.3%
Burlington, VT, Airport Rev., “A”, 4%, 2028		$	235,000			$	198,302
Chicago, IL, O’Hare International Airport Rev. General Airport Sr. Lien Rev., “A”, 5%, 2022			2,880,000				3,205,440
Guam International Airport Authority Rev., “C”, 5%, 2016			45,000				47,598
Guam International Airport Authority Rev., “C”, 5%, 2017			80,000				84,984
Houston, TX, Airport System Rev., “B”, 5%, 2026			265,000				291,452
Houston, TX, Airport System Rev., Subordinate Lien, “A”, 5%, 2031			250,000				257,248
Massachusetts Port Authority Rev., “A”, 5%, 2037			65,000				67,067
Port Authority of NY & NJ, Special Obligation Rev. (JFK International Air Terminal LLC), 6%, 2036			485,000				529,077
Port Authority of NY & NJ, Special Obligation Rev. (JFK International Air Terminal LLC), 6%, 2042			550,000				595,947
San Jose, CA, Airport Rev., “A-2”, 5.25%, 2034			1,215,000				1,271,874
						$	6,548,989
General Obligations - General Purpose - 7.0%
Bellwood, IL, 5.875%, 2027		$	300,000			$	278,136
Bellwood, IL, 6.15%, 2032			700,000				639,562
Charleston County, SC, Transportation Sales Tax, 5%, 2022			880,000				1,060,910
Chicago, IL, Metropolitan Water Reclamation District-Greater Chicago, “C”, 5%, 2030			1,260,000				1,363,194
Commonwealth of Massachusetts, General Obligation, “B”, 5%, 2021			1,755,000				2,101,946
Guam Government, “A”, 7%, 2039			170,000				178,425
Luzerne County, PA, AGM, 6.75%, 2023			860,000				962,366
Richmond, VA, Public Improvement, “A”, 5%, 2023			2,630,000				3,132,462
State of California, 5.25%, 2028			660,000				743,081
State of California, 5.25%, 2030			1,560,000				1,741,272
State of California, 5.25%, 2035			1,285,000				1,393,904
State of Hawaii, “DZ”, 5%, 2031			335,000				368,148
State of Illinois, 5.5%, 2038			305,000				318,411
State of Washington, “R”, 5%, 2022			4,540,000				5,410,727
						$	19,692,544
General Obligations - Schools - 0.5%
Beverly Hills, CA, Unified School District (Election of 2008), Capital Appreciation, 0%, 2031		$	525,000			$	244,818
Los Angeles, CA, Unified School District, “D”, 5%, 2034			180,000				195,309
Merced, CA, Union High School District, Capital Appreciation, “A”, ASSD GTY, 0%, 2030			145,000				64,228
Royse City, TX, Independent School District, School Building, Capital Appreciation, PSF, 0%, 2027			955,000				502,817
Royse City, TX, Independent School District, School Building, Capital Appreciation, PSF, 0%, 2029			965,000				454,891
						$	1,462,063
Healthcare Revenue - Hospitals - 25.4%
Alexander City, AL, Special Care Facilities Financing Authority Medical Facilities Rev., “A” (Russell Hospital Corp.), 5.75%, 2036		$	600,000			$	574,248
Athens County, OH, Hospital Facilities Rev. (O’Bleness Memorial Hospital), “A”, 7.125%, 2033			1,500,000				1,500,240
Butler County, OH, Hospital Facilities Rev. (UC Health), 5.75%, 2040			260,000				268,765
California Health Facilities Financing Authority Rev. (St. Joseph Health System), “A”, 5.75%, 2039			650,000				708,071
California Health Facilities Financing Authority Rev. (Sutter Health), “B”, 5.875%, 2031			1,295,000				1,470,654
Chattanooga, TN, Health Educational & Housing Facility Board Rev. (Catholic Health Initiatives), “A”, 5.25%, 2045			1,710,000				1,748,971
Chautauqua County, NY, Capital Resource Corp. Rev. (Women’s Christian Assn.), “A”, 8%, 2030			1,060,000				1,104,287
Citrus County, FL, Hospital Board Rev. (Citrus Memorial Hospital), 6.25%, 2023			655,000				652,662
Cullman County, AL, Health Care Authority (Cullman Regional Medical Center), “A”, 6.75%, 2029			865,000				910,456
DeKalb County, GA, Hospital Authority Rev. (DeKalb Medical Center, Inc.), 6.125%, 2040			1,150,000				1,155,796
Escambia County, FL, Health Facilities Authority (Baptist Hospital, Inc.), “A”, 6%, 2036			615,000				646,439
Fruita, CO, Rev. (Family Health West Project), 7%, 2018			175,000				191,615
Fruita, CO, Rev. (Family Health West Project), 8%, 2043			1,310,000				1,425,542
Gallia County, OH, Hospital Facilities Rev. (Holzer Health Systems), “A”, 8%, 2042			1,405,000				1,482,963

 

1

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Portfolio of Investments (unaudited) – continued

 

Issuer		Shares/Par				Value ($)
Municipal Bonds - continued
Healthcare Revenue - Hospitals - continued
Glasgow, KY, Healthcare Rev. (TJ Samson Community Hospital), 6.375%, 2035		$	570,000			$	619,567
Harris County, TX, Cultural Education Facilities Finance Corp. Medical Facilities Rev. (Baylor College of Medicine), “D”, 5.625%, 2032			510,000				553,299
Harris County, TX, Health Facilities Development Corp., Hospital Rev. (Memorial Hermann Healthcare Systems), “B”, 7.25%, 2018 (c)			610,000				784,710
Illinois Finance Authority Rev. (Advocate Healthcare), 4%, 2047			495,000				411,726
Illinois Finance Authority Rev. (Kewanee Hospital), 5.1%, 2031			630,000				630,139
Illinois Finance Authority Rev. (Provena Health), “A”, 7.75%, 2034			945,000				1,137,355
Illinois Finance Authority Rev. (Rehabilitation Institute of Chicago), “A”, 6%, 2043			360,000				385,614
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 6.875%, 2038			940,000				1,020,417
Indiana Health & Educational Facilities Finance Authority, Hospital Rev. (Clarian Health), “A”, 5%, 2039			1,000,000				1,004,570
Indiana Health & Educational Facilities Finance Authority, Hospital Rev. (Community Foundation of Northwest Indiana), 5.5%, 2037			1,860,000				1,924,077
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.25%, 2031			595,000				611,255
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.375%, 2041			375,000				383,059
Johnson City, TN, Health & Educational Facilities Board, Hospital Rev. (Mountain States Health Alliance), 6%, 2038			365,000				394,317
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.375%, 2040			1,095,000				1,150,243
Knox County, IN, Economic Development Rev. (Good Samaritan Hospital), “A”, 5%, 2042			170,000				163,052
Louisiana Public Facilities Authority Hospital Rev. (Lake Charles Memorial Hospital), 6.375%, 2034			1,115,000				1,156,868
Lufkin, TX, Health Facilities Development Corp. Rev. (Memorial Health System), 5.5%, 2037			110,000				107,748
Martin County, FL, Health Facilities Authority Rev. (Martin Memorial Medical Center), 5.5%, 2042			495,000				499,005
Miami Beach, FL, Health Facilities Authority Rev. (Mount Sinai Medical Center), 6.75%, 2014 (c)			110,000				115,552
Miami Beach, FL, Health Facilities Authority Rev. (Mount Sinai Medical Center), 6.75%, 2029			700,000				726,614
Michigan Hospital Finance Authority Rev. (Henry Ford Health System), 5.75%, 2039			2,000,000				2,070,240
Montgomery, AL, Medical Clinic Board Health Care Facility Rev. (Jackson Hospital & Clinic), 5.25%, 2036			1,135,000				1,116,023
Muskingum County, OH, Hospital Facilities Rev. (Genesis Health System Obligated Group), 5%, 2033			450,000				383,882
Muskingum County, OH, Hospital Facilities Rev. (Genesis Health System Obligated Group), 5%, 2044			1,100,000				866,503
Muskingum County, OH, Hospital Facilities Rev. (Genesis Health System Obligated Group), 5%, 2048			450,000				348,426
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6%, 2027			1,110,000				1,184,825
New Mexico Hospital Equipment Loan Council, Hospital Rev. (Rehoboth McKinley Christian Hospital), “A”, 5%, 2017			100,000				99,044
New Mexico Hospital Equipment Loan Council, Hospital Rev. (Rehoboth McKinley Christian Hospital), “A”, 5.25%, 2026			440,000				387,834
Norman, OK, Regional Hospital Authority Rev., 5%, 2027			300,000				302,328
Norman, OK, Regional Hospital Authority Rev., 5.375%, 2029			175,000				176,727
Norman, OK, Regional Hospital Authority Rev., 5.375%, 2036			1,395,000				1,397,093
Ohio Higher Educational Facility Commission Rev. (University Hospital Health System), 6.75%, 2015 (c)			1,610,000				1,709,128
Olympia, WA, Healthcare Facilities Authority Rev. (Catholic Health Initiatives), “D”, 6.375%, 2036			1,500,000				1,683,015
Palomar Pomerado Health Care District, CA, COP, 6.75%, 2039			1,735,000				1,777,750
Royal Oak, MI, Hospital Finance Authority Rev. (William Beaumont Hospital), 8.25%, 2039			1,595,000				1,918,466
Rutherford County, TN, Health & Educational Facilities Board Rev. (Ascension Health), 5%, 2040 (u)			12,500,000				12,763,000
Salida, CO, Hospital District Rev., 5.25%, 2036			1,572,000				1,513,443
Salt Lake City, UT, Hospital Authority Rev. (Intermountain Health Care), ETM, FRN, AMBAC, 13.037%, 2020 (c)(p)			600,000				603,672
South Lake County, FL, Hospital District Rev. (South Lake Hospital), “A”, 6%, 2029			255,000				276,678
South Lake County, FL, Hospital District Rev. (South Lake Hospital), “A”, 6.25%, 2039			385,000				417,325
Southeastern Ohio Port Authority, Hospital Facilities Rev. (Memorial Health System), 5.75%, 2032			595,000				562,287
Sullivan County, TN, Health, Educational & Housing Facilities Board Hospital Rev. (Wellmont Health Systems Project), “C”, 5.25%, 2036			1,115,000				1,113,495
Tallahassee, FL, Health Facilities Rev. (Tallahassee Memorial Healthcare, Inc.), 6.25%, 2020			3,085,000				3,089,967
Tyler, TX, Health Facilities Development Corp. (East Texas Medical Center), “A”, 5.25%, 2032			985,000				935,356
Tyler, TX, Health Facilities Development Corp. (East Texas Medical Center), “A”, 5.375%, 2037			670,000				638,450
Upland, CA, COP (San Antonio Community Hospital), 6.375%, 2032			1,750,000				1,939,543
Washington Health Care Facilities Authority Rev. (Virginia Mason Medical Center), “A”, 6.25%, 2042			1,400,000				1,449,070
West Contra Costa, CA, Healthcare District, AMBAC, 5.5%, 2029			195,000				195,759
West Virginia Hospital Finance Authority, Hospital Rev. (Thomas Health System), 6.5%, 2038			905,000				874,746
Wisconsin Health & Educational Facilities Authority Rev. (Aurora Health Care, Inc.), “A”, 5%, 2026			320,000				335,379

 

2

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Portfolio of Investments (unaudited) – continued

 

Issuer		Shares/Par				Value ($)
Municipal Bonds - continued
Healthcare Revenue - Hospitals - continued
Wisconsin Health & Educational Facilities Authority Rev. (Aurora Health Care, Inc.), “A”, 5%, 2028		$	95,000			$	98,034
Wisconsin Health & Educational Facilities Authority Rev. (Wheaton Franciscan Services), 5.25%, 2034			1,135,000				1,137,906
						$	70,985,290
Healthcare Revenue - Long Term Care - 12.6%
Americus and Sumter County, GA, Hospital Authority Rev. (Magnolia Manor Obligated Group), “A”, 6.25%, 2033		$	185,000			$	187,054
Americus and Sumter County, GA, Hospital Authority Rev. (Magnolia Manor Obligated Group), “A”, 6.375%, 2043			185,000				185,683
Bell County, TX, Health Facility Development Corp. (Advanced Living Technologies, Inc.), 8%, 2036 (a)(d)			3,400,000				34,000
Bucks County, PA, Industrial Development Authority Rev. (Lutheran Community Telford Center), 5.75%, 2027			170,000				169,072
Bucks County, PA, Industrial Development Authority Rev. (Lutheran Community Telford Center), 5.75%, 2037			225,000				211,381
Chartiers Valley, PA, Industrial & Commercial Development Authority (Asbury Health Center Project), 5.75%, 2022			150,000				148,355
Collier County, FL, Industrial Development Authority Continuing Care Community Rev. (The Arlington of Naples Project), “A”, 8.125%, 2044			935,000				942,256
Colorado Health Care Facilities Authority Rev. (American Baptist Homes of the Midwest Obligated Group), 8%, 2043			400,000				399,992
Colorado Health Facilities Authority Rev. (American Baptist Homes), “A”, 5.9%, 2037			380,000				301,750
Colorado Health Facilities Authority Rev. (Christian Living Communities Project), “A”, 5.75%, 2037			375,000				376,466
Colorado Health Facilities Authority Rev. (Covenant Retirement Communities, Inc.), “A”, 5%, 2033			650,000				618,547
Colorado Health Facilities Authority Rev. (Evangelical Lutheran Good Samaritan Society), 5.625%, 2043			170,000				174,891
Cumberland County, PA, Municipal Authority Rev. (Asbury Atlantic, Inc.), 5.25%, 2041			740,000				653,768
Cumberland County, PA, Municipal Authority Rev. (Diakon Lutheran Social Ministries), 6.125%, 2029			1,360,000				1,449,474
Fulton County, GA, Residential Care Facilities, Elderly Authority Rev. (Canterbury Court), “A”, 6.125%, 2034			330,000				330,333
Georgia Medical Center Hospital Authority Rev. (Spring Harbor Green Island Project), 5.25%, 2027			1,000,000				984,830
Georgia Medical Center Hospital Authority Rev. (Spring Harbor Green Island Project), 5.25%, 2037			215,000				193,850
Hawaii Department of Budget & Finance, Special Purpose Rev. (15 Craigside Project), “A”, 8.75%, 2029			105,000				117,335
Hawaii Department of Budget & Finance, Special Purpose Rev. (15 Craigside Project), “A”, 9%, 2044			275,000				306,793
Huntsville-Redstone Village, AL, Special Care Facilities Financing Authority (Redstone Village Project), 5.5%, 2028			410,000				382,403
Huntsville-Redstone Village, AL, Special Care Facilities Financing Authority (Redstone Village Project), 5.5%, 2043			440,000				368,993
Idaho Health Facilities Authority Rev. (The Terraces of Boise Project), “B2”, 6%, 2021			405,000				405,656
Idaho Health Facilities Authority Rev. (The Terraces of Boise Project), “B3”, 5.25%, 2020			285,000				284,504
Illinois Finance Authority Rev. (Christian Homes, Inc.), 6.125%, 2027			850,000				908,922
Illinois Finance Authority Rev. (Evangelical Retirement Homes of Greater Chicago, Inc.), 7.25%, 2045			500,000				508,990
Illinois Finance Authority Rev. (Franciscan Communities, Inc.), “A”, 4.75%, 2033			390,000				326,095
Illinois Finance Authority Rev. (Franciscan Communities, Inc.), “A”, 5.5%, 2037			800,000				710,728
Illinois Finance Authority Rev. (Franciscan Communities, Inc.), “A”, 5.125%, 2043			485,000				392,753
Illinois Finance Authority Rev. (Friendship Village), “A”, 5.375%, 2025			1,270,000				1,258,011
Illinois Finance Authority Rev. (Lutheran Home & Services), 5.625%, 2042			475,000				439,921
Illinois Finance Authority Rev. (Montgomery Place), “A”, 5.75%, 2038			520,000				514,582
Illinois Finance Authority Rev. (Smith Village), “A”, 6.25%, 2035			360,000				353,243
Illinois Finance Authority Rev. (The Clare at Water Tower), “A-6”, 6%, 2028 (a)(d)			343,000				34
Illinois Finance Authority Rev., Capital Appreciation, (The Clare at Water Tower), “B”, 0%, 2050 (a)			147,000				15
Indiana Finance Authority Rev. (BHI Senior Living), “A”, 6%, 2041			535,000				539,756
Indiana Finance Authority Rev. (Marquette Project), 4.75%, 2032			740,000				689,754
Indiana Finance Authority Rev. (Marquette Project), 5%, 2039			185,000				169,669
Iowa Finance Authority, Health Care Facilities Rev. (Care Initiatives), “A”, 5.5%, 2025			800,000				808,736
James City County, VA, Economic Development Authority, Residential Care Facilities Rev. (Virginia United Methodist Homes of Williamsburg), “A”, 6%, 2043			608,384				509,710
James City County, VA, Economic Development Authority, Residential Care Facilities Rev. (Virginia United Methodist Homes of Williamsburg), “A”, 2%, 2048 (a)			196,784				5,211
Kentucky Economic Development Finance Authority Health Care Rev. (Masonic Homes of Kentucky, Inc.), 5.375%, 2042			330,000				301,445
Kentucky Economic Development Finance Authority Health Care Rev. (Masonic Homes of Kentucky, Inc.), 5.5%, 2045			200,000				184,270
Kentucky Economic Development Finance Authority Rev. (Masonic Home Independent Living II), 7.25%, 2041			250,000				265,155
Kentucky Economic Development Finance Authority Rev. (Masonic Home Independent Living II), 7.375%, 2046			200,000				213,090
Lenexa, KS, Health Care Facilities Rev. (Lakeview Village, Inc.), 5.375%, 2027			315,000				301,008
Lenexa, KS, Health Care Facilities Rev. (Lakeview Village, Inc.), 7.125%, 2029			345,000				361,815
Maryland Health & Higher Educational Facilities Authority Rev. (Charlestown Community), 6.25%, 2041			475,000				500,503

 

3

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Portfolio of Investments (unaudited) – continued

 

Issuer		Shares/Par				Value ($)
Municipal Bonds - continued
Healthcare Revenue - Long Term Care - continued
Massachusetts Development Finance Agency Rev. (Adventcare), “A”, 6.75%, 2037		$	1,270,000			$	1,303,109
Massachusetts Development Finance Agency Rev. (Linden Ponds, Inc.), “A-1”, 6.25%, 2031			239,410				211,533
Massachusetts Development Finance Agency Rev. (Linden Ponds, Inc.), “A-1”, 6.25%, 2039			59,939				51,198
Massachusetts Development Finance Agency Rev. (Linden Ponds, Inc.), “A-2”, 5.5%, 2046			15,996				11,702
Massachusetts Development Finance Agency Rev. (Linden Ponds, Inc.), Capital Appreciation, “B”, 0%, 2056			79,566				489
Massachusetts Development Finance Agency Rev. (North Hill Communities), “A”, 6.25%, 2033			175,000				171,098
Massachusetts Development Finance Agency Rev. (North Hill Communities), “A”, 6.5%, 2043			275,000				265,166
Montgomery County, PA, Higher Education & Health Authority Rev. (AHF/Montgomery), 6.875%, 2036			1,130,000				1,140,588
Montgomery County, PA, Industrial Development Authority Retirement Community Rev. (ACTS Retirement - Life Communities, Inc.), 5%, 2028			565,000				567,622
New Jersey Economic Development Authority Rev. (Lions Gate), “A”, 5.875%, 2037			530,000				505,313
New Jersey Economic Development Authority Rev. (Seabrook Village, Inc.), 5.25%, 2036			715,000				658,787
Norfolk, VA, Redevelopment & Housing Authority Rev. (Fort Norfolk Retirement Community), “A”, 6%, 2025			215,000				214,475
Norfolk, VA, Redevelopment & Housing Authority Rev. (Fort Norfolk Retirement Community), “A”, 6.125%, 2035			330,000				325,958
Oklahoma Development Finance Authority Continuing Care Retirement Community Rev. (Inverness Village), 5.75%, 2037			595,000				566,624
Pell City, AL, Special Care Facilities, Financing Authority Rev. (Noland Health Services, Inc.), 5%, 2039			290,000				290,351
Red River, TX, Health Facilities Development Corp., Retirement Facilities Rev. (Sears Methodist Retirement System, Inc.), “A”, 6.05%, 2046			253,000				213,231
Red River, TX, Health Facilities Development Corp., Retirement Facilities Rev. (Sears Methodist Retirement System, Inc.), “C”, 6.25%, 2053			22,000				18,775
Red River, TX, Health Facilities Development Corp., Retirement Facilities Rev. (Sears Methodist Retirement System, Inc.), “D”, 6.05%, 2046			43,000				36,241
Sarasota County, FL, Health Facility Authority Rev. (Sarasota Manatee), 5.75%, 2037			490,000				431,680
Sarasota County, FL, Health Facility Authority Rev. (Sarasota Manatee), 5.75%, 2045			105,000				89,335
South Carolina Jobs & Economic Development Authority Rev. (Woodlands at Furman), “A”, 6%, 2032			367,169				243,877
South Carolina Jobs & Economic Development Authority Rev. (Woodlands at Furman), “A”, 6%, 2047			335,086				208,497
South Carolina Jobs & Economic Development Authority Rev. (Woodlands at Furman), Capital Appreciation, “B”, 0%, 2047			157,358				1,770
South Carolina Jobs & Economic Development Authority Rev. (Woodlands at Furman), Capital Appreciation, “B”, 0%, 2047			143,608				1,616
South Carolina Jobs & Economic Development Authority, Health Facilities Rev. (Lutheran Homes of South Carolina, Inc.), 5.125%, 2048			105,000				91,292
St. John’s County, FL, Industrial Development Authority Rev. (Presbyterian Retirement), “A”, 6%, 2045			1,565,000				1,608,069
Suffolk County, NY, Industrial Development Agency (Medford Hamlet Assisted Living), 6.375%, 2039			465,000				418,365
Tarrant County, TX, Cultural Education Facilities Finance Corp. Retirement Facility (Air Force Village Foundation, Inc.), 6.125%, 2029			115,000				118,849
Tarrant County, TX, Cultural Education Facilities Finance Corp. Retirement Facility (Air Force Village Foundation, Inc.), 5.125%, 2037			100,000				89,783
Tarrant County, TX, Cultural Education Facilities Finance Corp. Retirement Facility (Air Force Village Foundation, Inc.), 6.375%, 2044			780,000				795,538
Tarrant County, TX, Cultural Education Facilities Finance Corp. Retirement Facility (Stayton at Museum Way), 8.25%, 2044			1,500,000				1,449,480
Tempe, AZ, Industrial Development Authority Rev. (Friendship Village), “A”, 6.25%, 2042			225,000				227,887
Tempe, AZ, Industrial Development Authority Rev. (Friendship Village), “A”, 6.25%, 2046			170,000				171,340
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7%, 2030			245,000				270,799
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7.125%, 2040			370,000				404,521
Travis County, TX, Health Facilities Development Corp., Retirement Facilities Rev. (Querencia Barton Creek), 5.5%, 2025			460,000				461,191
Ulster County, NY, Industrial Development Agency (Woodland Pond), “A”, 6%, 2037			1,075,000				839,403
Washington Housing Finance Community Nonprofit Housing Rev. (Rockwood Retirement Communities), 5.125%, 2020			775,000				775,000
Wichita, KS, Health Care Facilities Rev. (Presbyterian Manors, Inc.), “A”, 6.375%, 2043			465,000				471,929
						$	35,213,283
Healthcare Revenue - Other - 0.3%
Koyukuk, AK, Tanana Chiefs Conference, Healthcare Facilities Project, 7.75%, 2041		$	705,000			$	759,504
Human Services - 1.1%
Louisiana Local Government, Environmental Facilities & Community Development Authority Rev. (CDF Healthcare), “A”, 7%, 2036		$	480,000			$	466,238
Louisiana Local Government, Environmental Facilities & Community Development Authority Rev. (CDF Healthcare), “C”, 7%, 2036			375,000				364,249

 

4

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Portfolio of Investments (unaudited) – continued

 

Issuer		Shares/Par				Value ($)
Municipal Bonds - continued
Human Services - continued
Louisiana Local Government, Environmental Facilities & Community Development Authority Rev. (Westside Rehab Center Project), “A”, 6.85%, 2036		$	1,100,000			$	1,098,603
Massachusetts Development Finance Agency Rev. (Evergreen Center, Inc.), 5.5%, 2035			620,000				591,827
New York, NY, Industrial Development Agency, Civic Facility Rev. (Special Needs Facilities), 6.5%, 2017			500,000				499,995
						$	3,020,912
Industrial Revenue - Airlines - 9.5%
Clayton County, GA, Development Authority Special Facilities Rev. (Delta Airlines, Inc.), “A”, 8.75%, 2029		$	555,000			$	656,004
Clayton County, GA, Development Authority Special Facilities Rev. (Delta Airlines, Inc.), “B”, 9%, 2035			285,000				303,833
Denver, CO, City & County Airport Rev. (United Airlines), 5.25%, 2032			3,735,000				3,478,256
Denver, CO, City & County Airport Rev. (United Airlines), 5.75%, 2032			1,600,000				1,565,856
Houston, TX, Airport Systems Rev., Special Facilities (Continental Airlines, Inc. Terminal E Project), 6.75%, 2029			3,690,000				3,690,701
Houston, TX, Airport Systems Rev., Special Facilities (Continental Airlines, Inc. Terminal E Project), 7%, 2029			385,000				385,481
Houston, TX, Airport Systems Rev., Special Facilities (Continental Airlines, Inc.), 6.625%, 2038			470,000				486,267
Houston, TX, Airport Systems Rev., Special Facilities (Continental Airlines, Inc.), “B”, 6.125%, 2017			335,000				335,017
Houston, TX, Airport Systems Rev., Special Facilities (Continental Airlines, Inc.), “E”, 6.75%, 2021			1,735,000				1,735,000
Los Angeles, CA, Regional Airport Lease Rev. (American Airlines, Inc.), “C”, 7.5%, 2024			820,000				843,222
New Jersey Economic Development Authority, Special Facilities Rev. (Continental Airlines, Inc.), 4.875%, 2019			1,405,000				1,384,290
New Jersey Economic Development Authority, Special Facilities Rev. (Continental Airlines, Inc.), 5.125%, 2023			910,000				884,729
New Jersey Economic Development Authority, Special Facilities Rev. (Continental Airlines, Inc.), 5.25%, 2029 (b)			910,000				885,385
New Jersey Economic Development Authority, Special Facilities Rev. (Continental Airlines, Inc.), 7.2%, 2030			1,595,000				1,595,335
New York, NY, City Industrial Development Agencies Rev. (American Airlines, Inc.), 7.625%, 2025			5,485,000				6,026,918
New York, NY, City Industrial Development Agencies Rev. (American Airlines, Inc.), 7.75%, 2031			1,025,000				1,126,270
Tulsa, OK, Municipal Airport Trust Rev. (American Airlines, Inc.), “B”, 5.5%, 2035			345,000				325,749
Tulsa, OK, Municipal Airport Trust Rev. (American Airlines, Inc.), “B”, 5.5%, 2035			920,000				868,609
						$	26,576,922
Industrial Revenue - Chemicals - 2.1%
Brazos River, TX, Harbor Navigation District (Dow Chemical Co.), “A”, 5.95%, 2033		$	2,000,000			$	2,124,480
Brazos River, TX, Harbor Navigation District (Dow Chemical Co.), “B-2”, 4.95%, 2033			75,000				77,418
Louisiana Environmental Facilities & Community Development Authority Rev. (Westlake Chemical), 6.75%, 2032			1,000,000				1,069,800
Louisiana Environmental Facilities & Community Development Authority Rev. (Westlake Chemical), “A”, 6.5%, 2029			610,000				677,271
Red River Authority, TX, Pollution Control Rev. (Celanese Project) “B”, 6.7%, 2030			1,920,000				1,922,093
						$	5,871,062
Industrial Revenue - Environmental Services - 2.7%
California Pollution Control Financing Authority, Solid Waste Disposal Rev. (Waste Management, Inc.), “A”, 5%, 2022		$	695,000			$	728,631
Gulf Coast Waste Disposal Authority (Waste Management, Inc.), 5.2%, 2028			440,000				451,959
Maine Finance Authority Solid Waste Disposal Rev. (Casella Waste Systems, Inc.), 6.25%, 2025 (b)			705,000				716,477
Massachusetts Development Finance Agency, Resource Recovery Rev. (Covanta Energy Project), “A”, 4.875%, 2027			915,000				870,458
Massachusetts Development Finance Agency, Resource Recovery Rev. (Covanta Energy Project), “C”, 5.25%, 2042			1,785,000				1,613,765
Niagara County, NY, Industrial Development Agency, Solid Waste Disposal Rev. (Covanta Energy Project), “A”, 5.25%, 2042			1,825,000				1,652,246
Ohio Solid Waste Rev. (Republic Services, Inc. Project), FRN, 0.52%, 2035			375,000				375,019
Pennsylvania Economic Development Financing Authority Rev., Solid Waste Refunding (Republic Services, Inc. Project), “A” , FRN, 0.55%, 2019 (b)			690,000				690,552
Vermont Economic Development Authority, Solid Waste Disposal Rev. (Casella Waste Systems, Inc.), 4.75%, 2036 (b)			335,000				322,739
						$	7,421,846
Industrial Revenue - Other - 2.6%
California Statewide Communities Development Authority Facilities (Microgy Holdings Project), 9%, 2038 (a)(d)		$	12,624			$	126
Gulf Coast, TX, Industrial Development Authority Rev. (CITGO Petroleum Corp.), 4.875%, 2025			735,000				710,554
Gulf Coast, TX, Industrial Development Authority Rev. (Microgy Holdings Project), 7%, 2036 (a)(d)			224,775				2,248
Houston, TX, Industrial Development Corp. (United Parcel Service, Inc.), 6%, 2023			90,000				91,909
Iowa Finance Authority Midwestern Disaster Area Rev. (Iowa Fertilizer Co.), 5%, 2019			390,000				384,942
Iowa Finance Authority Midwestern Disaster Area Rev. (Iowa Fertilizer Co.), 5.5%, 2022			420,000				404,347

 

5

---

Portfolio of Investments (unaudited) – continued

 

Issuer		Shares/Par				Value ($)
Municipal Bonds - continued
Industrial Revenue - Other - continued
Iowa Finance Authority Midwestern Disaster Area Rev. (Iowa Fertilizer Co.), 5.25%, 2025		$	420,000			$	389,865
New Jersey Economic Development Authority Rev. (GMT Realty LLC), “B”, 6.875%, 2037			430,000				424,354
New York, NY, City Industrial Development Agency Rev., Liberty Bonds (IAC/InterActiveCorp), 5%, 2035			310,000				310,546
Philadelphia, PA, Industrial Development Authority Rev. (Host Marriott LP), 7.75%, 2017			3,255,000				3,255,358
St. Charles Parish, LA, Gulf Zone Opportunity Zone Rev. (Valero Energy Corp.), 4%, 2040 (b)			1,165,000				1,174,984
						$	7,149,233
Industrial Revenue - Paper - 2.9%
Butler, AL, Industrial Development Board, Solid Waste Disposal Rev. (Georgia-Pacific Corp.), 5.75%, 2028		$	155,000			$	158,126
Cass County, TX, Industrial Development Corp. (International Paper Co.), “A”, 4.625%, 2027			2,150,000				2,148,882
Lowndes County, MS, Solid Waste Disposal & Pollution Control Rev. (Weyerhaeuser Co.), 6.8%, 2022			2,000,000				2,294,780
Phenix City, AL, Industrial Development Board Environmental Improvement Rev. (MeadWestvaco Coated Board Project), “A”, 4.125%, 2035			260,000				200,785
Rockdale County, GA, Development Authority Project Rev. (Visy Paper Project), “A”, 6.125%, 2034			640,000				643,539
Selma, AL, Industrial Development Board Rev., Gulf Opportunity Zone (International Paper Co.), “A”, 5.375%, 2035			565,000				569,797
Valparaiso, IN, Exempt Facilities Rev. (Pratt Paper LLC Project), 6.75%, 2034			615,000				637,411
Valparaiso, IN, Exempt Facilities Rev. (Pratt Paper LLC Project), 7%, 2044			1,475,000				1,534,679
West Point, VA, Industrial Development Authority, Solid Waste Disposal Rev. (Chesapeake Corp.), 6.25%, 2019 (a)(d)			1,798,697				180
West Point, VA, Industrial Development Authority, Solid Waste Disposal Rev. (Chesapeake Corp.), “A”, 6.375%, 2019 (a)(d)			673,309				67
						$	8,188,246
Miscellaneous Revenue - Entertainment & Tourism - 1.0%
Brooklyn, NY, Arena Local Development Corp. (Barclays Center Project), 6%, 2030		$	230,000			$	244,732
Fort Sill Apache Tribe, OK, Economic Development Authority, Gaming Enterprise., “A”, 8.5%, 2026 (n)			520,000				569,920
Harris County, Houston, TX, Sports Authority Rev., Capital Appreciation, “A”, 0%, 2038			1,205,000				256,038
Harris County, Houston, TX, Sports Authority, Special Rev., “A”, NATL, 5%, 2025			885,000				885,133
Seminole Tribe, FL, Special Obligation Rev., “A”, 5.25%, 2027 (n)			515,000				527,504
Seneca Nation of Indians, NY, Capital Improvements Authority, Special Obligation, 5%, 2023 (n)			275,000				275,564
						$	2,758,891
Miscellaneous Revenue - Other - 5.5%
Austin, TX, Convention Center (Convention Enterprises, Inc.), “A”, 5.25%, 2015		$	500,000			$	506,420
Austin, TX, Convention Center (Convention Enterprises, Inc.), “A”, SYNCORA, 5.25%, 2017			215,000				225,301
Austin, TX, Convention Center (Convention Enterprises, Inc.), “A”, SYNCORA, 5.25%, 2020			170,000				176,193
Austin, TX, Convention Center (Convention Enterprises, Inc.), “A”, SYNCORA, 5.25%, 2024			330,000				334,594
Austin, TX, Convention Center (Convention Enterprises, Inc.), “A”, SYNCORA, 5%, 2034			290,000				265,040
Baker, FL, Correctional Development Corp. (Baker County Detention Center), 7.5%, 2030			440,000				370,418
Chicago, IL, O’Hare International Airport Rev., Customer Facility Charge, AGM, 5.25%, 2032			135,000				138,468
Chicago, IL, O’Hare International Airport Rev., Customer Facility Charge, AGM, 5.25%, 2033			70,000				71,545
Chicago, IL, O’Hare International Airport Rev., Customer Facility Charge, AGM, 5.5%, 2043			270,000				276,280
Cleveland-Cuyahoga County, OH, Port Authority Rev., 7%, 2040			235,000				250,942
Cleveland-Cuyahoga County, OH, Port Authority Rev. (Cleveland City), “B”, 4.5%, 2030			25,000				20,856
Cleveland-Cuyahoga County, OH, Port Authority Rev. (Fairmount), “B”, 5.125%, 2025			130,000				134,765
Columbus, OH, Franklin County Finance Authority Development Rev., 6%, 2035			700,000				715,547
Dayton Montgomery County, OH, Port Authority Rev. (Parking Garage), 6.125%, 2024			1,130,000				1,130,825
Florida Citizens Property Insurance Corp., “A-1”, 5%, 2019			245,000				280,861
Florida Citizens Property Insurance Corp., “A-1”, 5%, 2020			1,285,000				1,484,753
Hardeman County, TN, Correctional Facilities Rev., 7.75%, 2017			965,000				969,072
Indiana Finance Authority Rev., (Ohio River Bridges East End Crossing Project), “A”, 5%, 2035			300,000				296,877
Indiana Finance Authority Rev., (Ohio River Bridges East End Crossing Project), “A”, 5%, 2040			820,000				777,401
Indiana Finance Authority Rev., (Ohio River Bridges East End Crossing Project), “A”, 5%, 2044			240,000				225,389
Massachusetts Port Authority Facilities Rev. (Conrac Project), “A”, 5.125%, 2041			65,000				67,201
New Jersey Economic Development Authority Rev. (The Goethals Bridge Replacement Project) , 5.375%, 2043			420,000				423,671
New Jersey Economic Development Authority Rev. (The Goethals Bridge Replacement Project), 5.5%, 2027			70,000				76,479
New Jersey Economic Development Authority Rev. (The Goethals Bridge Replacement Project), 5%, 2028			70,000				72,148

 

6

---

Portfolio of Investments (unaudited) – continued

 

Issuer		Shares/Par				Value ($)
Municipal Bonds - continued
Miscellaneous Revenue - Other - continued
New Jersey Economic Development Authority Rev. (The Goethals Bridge Replacement Project), AGM, 5%, 2031		$	210,000			$	212,444
New Orleans, LA, Aviation Board Gulf Opportunity Zone CFC Rev. (Consolidated Rental Car), “A”, 6.25%, 2030			455,000				513,777
New York Liberty Development Corp., Liberty Rev. (One Bryant Park LLC), 6.375%, 2049			1,065,000				1,138,900
Riversouth, OH, Authority Rev. (Lazarus Building), “A”, 5.75%, 2027			1,125,000				1,119,600
Summit County, OH, Port Authority Building Rev. (Flats East Development Recovery Zone Facility Bonds), 6.875%, 2040			85,000				90,747
Summit County, OH, Port Authority Building Rev. (Seville Project), “A”, 5.1%, 2025			140,000				135,020
Summit County, OH, Port Authority Building Rev. (Workforce Policy Board), “F”, 4.875%, 2025			815,000				784,666
Wisconsin Public Finance Authority, Airport Facilities Rev. (Transportation Infrastructure Properties LLC), “B”, 5.25%, 2028			325,000				311,974
Wisconsin Public Finance Authority, Airport Facilities Rev. (Transportation Infrastructure Properties LLC), “B”, 5%, 2042			2,245,000				1,839,845
						$	15,438,019
Multi-Family Housing Revenue - 1.4%
Bay County, FL, Housing Finance Authority, Multi-Family Rev. (Andrews Place II Apartments), AGM, 5%, 2035		$	210,000			$	210,340
Charter Mac Equity Issuer Trust, FHLMC, 6%, 2052 (n)			2,000,000				2,248,140
Indianapolis, IN, Multi-Family Rev. (Cambridge Station Apartments II), FNMA, 5.25%, 2039 (b)			435,000				435,291
Mississippi Home Corp., Rev. (Kirkwood Apartments), 6.8%, 2037			1,095,000				679,174
North Charleston, SC, Housing Authority Rev. (Horizon Village), “A”, GNMA, 5.15%, 2048			445,000				447,296
						$	4,020,241
Parking - 0.2%
Boston, MA, Metropolitan Transit Parking Corp., Systemwide Parking Rev., 5.25%, 2036		$	460,000			$	496,216
Port Revenue - 0.5%
Alameda Corridor Transportation Authority, California Rev., “A”, AGM, 5%, 2028		$	125,000			$	136,811
Maryland Economic Development Corp. Rev. (Port America Chesapeake Terminal Project), “B”, 5.375%, 2025			195,000				205,932
Port Authority of NY & NJ, (170th Series), 5%, 2016			265,000				296,707
Port Authority of NY & NJ, (170th Series), 5%, 2017			265,000				304,111
Port Authority of NY & NJ, (170th Series), 5%, 2018			150,000				174,180
Port Authority of NY & NJ, (170th Series), 5%, 2019			260,000				304,845
						$	1,422,586
Sales & Excise Tax Revenue - 1.7%
Chicago, IL, Transit Authority Sales Tax Receipts Rev., 5.25%, 2029		$	275,000			$	292,933
Chicago, IL, Transit Authority Sales Tax Receipts Rev., 5.25%, 2030			550,000				583,985
Chicago, IL, Transit Authority Sales Tax Receipts Rev., 5.25%, 2031			105,000				110,775
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6%, 2034			1,180,000				1,230,433
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6%, 2041			590,000				610,326
Colorado Regional Transportation District, Sales Tax Rev. (Fastracks Project), “A”, 5%, 2027			1,165,000				1,309,530
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “C”, 5%, 2040			875,000				676,611
						$	4,814,593
Single Family Housing - Local - 0.1%
Sedgwick & Shawnee Counties, KS, Single Family Housing Rev., “A”, GNMA, 6.25%, 2035		$	25,000			$	26,199
Sedgwick & Shawnee Counties, KS, Single Family Housing Rev., “A-1”, GNMA, 5.75%, 2037			40,000				42,227
Sedgwick & Shawnee Counties, KS, Single Family Housing Rev., “A-2”, GNMA, 5.75%, 2037			125,000				129,449
Sedgwick & Shawnee Counties, KS, Single Family Housing Rev., “A-5”, GNMA, 5.9%, 2037			35,000				35,380
						$	233,255
Single Family Housing - State - 1.2%
California Housing Finance Agency Rev. (Home Mortgage), “E”, 4.75%, 2030		$	365,000			$	357,788
California Housing Finance Agency Rev. (Home Mortgage), “G”, 4.95%, 2023			1,615,000				1,634,655
California Housing Finance Agency Rev. (Home Mortgage), “I”, 4.7%, 2026			1,000,000				984,960
Texas Affordable Housing Corp. (Single Family Mortgage), “B”, GNMA, 5.25%, 2039			440,000				451,282
						$	3,428,685

 

7

---

Portfolio of Investments (unaudited) – continued

 

Issuer		Shares/Par				Value ($)
Municipal Bonds - continued
Solid Waste Revenue - 0.2%
Pennsylvania Economic Development Financing Authority, Sewer Sludge Disposal Rev. (Philadelphia Biosolids Facility), 6.25%, 2032		$	645,000			$	647,793
State & Local Agencies - 1.1%
Alabama Incentives Financing Authority Special Obligation, “A”, 5%, 2037		$	100,000			$	103,881
Commonwealth of Pennsylvania, State Public School Building Authority Lease Rev. (School District of Philadelphia Project), 5%, 2028			250,000				264,563
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., Enhanced, “A”, 5%, 2030			160,000				165,411
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., Enhanced, “A”, FGIC, 5%, 2035			220,000				220,319
Guam Government Department of Education (John F. Kennedy High School), “A”, COP, 6.875%, 2040			620,000				626,448
Massachusetts College Building Authority Rev., “C”, 3%, 2042			125,000				88,263
Metropolitan Government of Nashville & Davidson County, TN, Health & Educational Facilities Board Rev. (Meharry Medical College), AMBAC, 6%, 2016			555,000				592,213
Mississippi Development Bank Special Obligation (Marshall County Industrial Development Authority Mississippi Highway Construction Project), 5%, 2028			195,000				211,815
New York Tobacco Settlement Financing Corp., Asset-Backed Rev., “B”, 5%, 2021			515,000				558,811
Philadelphia, PA, Municipal Authority Rev., 6.5%, 2034			260,000				288,093
						$	3,119,817
Student Loan Revenue - 0.6%
Iowa Student Loan Liquidity Corp., “A-2”, 5.5%, 2025		$	280,000			$	284,242
Iowa Student Loan Liquidity Corp., “A-2”, 5.6%, 2026			280,000				283,867
Iowa Student Loan Liquidity Corp., “A-2”, 5.7%, 2027			30,000				30,451
Iowa Student Loan Liquidity Corp., “A-2”, 5.75%, 2028			555,000				561,566
Massachusetts Educational Financing Authority, Education Loan Rev., “H”, ASSD GTY, 6.35%, 2030			625,000				657,506
						$	1,817,632
Tax - Other - 1.6%
Allentown, PA, Neighborhood Improvement Zone Development Authority Tax Rev., “A”, 5%, 2035		$	160,000			$	148,523
Allentown, PA, Neighborhood Improvement Zone Development Authority Tax Rev., “A”, 5%, 2042			685,000				619,795
Hudson Yards, NY, Infrastructure Corp. Rev., “A”, 5%, 2047			710,000				716,134
Hudson Yards, NY, Infrastructure Corp. Rev., “A”, 5.75%, 2047			620,000				662,774
New York Dormitory Authority, State Personal Income Tax Rev., “C”, 5%, 2034			1,670,000				1,777,715
Virgin Islands Public Finance Authority Rev. (Diageo Project), “A”, 6.75%, 2037			395,000				425,221
						$	4,350,162
Tax Assessment - 5.0%
Anne Arundel County, MD, Special Obligation (National Business Park-North Project), 6.1%, 2040		$	265,000			$	277,837
Arborwood Community Development District, FL, Capital Improvement Rev. (Master Infrastructure Projects), “A”, 5.35%, 2036 (a)(d)			120,000				72,000
Arborwood Community Development District, FL, Capital Improvement Rev. (Master Infrastructure Projects), “A-2”, 5.35%, 2036			450,000				413,780
Arborwood Community Development District, FL, Capital Improvement Rev. (Master Infrastructure Projects), “B-2”, 5.1%, 2014			120,000				121,256
Arborwood Community Development District, FL, Special Assessment (Master Infrastructure Projects), “B”, 5.1%, 2014 (a)(d)			50,000				30,000
Arvada, CO, Cimarron Metropolitan District, Rev., 6%, 2022			500,000				482,385
Atlanta, GA, Tax Allocation (Eastside Project), “B”, 5.6%, 2030			815,000				854,943
Atlanta, GA, Tax Allocation (Princeton Lakes Project), 5.5%, 2031			470,000				471,354
Baltimore, MD, Special Obligation, (East Baltimore Research Park Project), “A”, 7%, 2038			715,000				752,788
Capital Region Community Development District, FL, Capital Improvement Rev., “A”, 7%, 2039			615,000				606,525
Concord Station Community Development District, FL, Special Assessment, 5%, 2015			75,000				74,745
Du Page County, IL, Special Service Area No. 31 Special Tax (Monarch Landing Project), 5.625%, 2036			305,000				300,178
Embrey Mill Community Development Authority, VA, Special Assessment Rev., 7.25%, 2043			790,000				766,695
Heritage Harbour North Community Development District, FL, Capital Improvement Rev., 6.375%, 2038			560,000				527,425
Homestead, Community Development District, FL, Special Assessment, “A”, 6%, 2037			660,000				480,308
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				91,530

 

8

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Portfolio of Investments (unaudited) – continued

 

Issuer		Shares/Par				Value ($)
Municipal Bonds - continued
Tax Assessment - continued
Legends Bay Community Development District, FL, “A”, 5.5%, 2014		$	410,000			$	394,990
Legends Bay Community Development District, FL, “A”, 5.875%, 2038			355,000				251,578
Los Angeles County, CA, Redevelopment Refunding Authority Tax Allocation Rev. “D”, 5%, 2022			505,000				560,666
Los Angeles County, CA, Redevelopment Refunding Authority Tax Allocation Rev. “D”, 5%, 2023			505,000				557,929
Main Street Community Development District, FL, “A”, 6.8%, 2038			535,000				532,282
Naturewalk Community Development District, FL, Capital Improvement Rev., “B”, 5.3%, 2016 (d)(q)			650,000				338,000
Ohio County, WV, Commission Tax Increment Rev. (Fort Henry Centre), “A”, 5.85%, 2034			235,000				239,155
Old Palm Community Development District, FL, Special Assessment (Palm Beach Gardens), “B”, 5.375%, 2014			145,000				144,754
OTC Community Development District, FL, Special Assessment, “A”, 5.3%, 2038			910,000				861,270
Overland Park, KS, Special Assessment (Tallgrass Creek), 4.85%, 2016			169,000				169,008
Overland Park, KS, Special Assessment (Tallgrass Creek), 5.125%, 2028			592,000				523,695
Parkway Center Community Development District, FL, Special Assessment, “B”, 7%, 2023			600,000				582,180
Pasco County, FL, Estancia At Wiregrass Community Development District, Capital Improvement, 7%, 2045			265,000				268,154
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			420,000				146,899
Paseo Community Development District, FL, Special Assessment, “A-1”, 5.4%, 2036			40,000				41,612
San Francisco, CA, City & County Redevelopment Successor Agency, Community Facilities District No. 6 (Mission Bay South Public Improvements), Capital Appreciation, “A”, 0%, 2043			1,275,000				187,884
Sterling Hill Community Development District, FL, Special Assessment, 5.5%, 2010 (d)			165,000				105,600
Stone Ridge, CO, Metropolitan District No. 2, 7.25%, 2031			500,000				129,275
Tallyn’s Reach, CO, Metropolitan District No. 3, CO, 5%, 2033			101,000				91,989
Tallyn’s Reach, CO, Metropolitan District No. 3, CO, 5.125%, 2038			111,000				99,869
Tuscany Reserve Community Development District, FL, Special Assessment, “B”, 5.25%, 2016			780,000				787,246
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			400,000				232,276
Watergrass Community Development District, FL, Special Assessment, “B”, 6.96%, 2017			135,000				131,136
						$	13,867,998
Tobacco - 6.7%
Buckeye, OH, Tobacco Settlement Financing Authority, “A-2”, 5.875%, 2030		$	1,935,000			$	1,553,128
Buckeye, OH, Tobacco Settlement Financing Authority, “A-2”, 5.875%, 2047			1,275,000				1,009,545
California Statewide Financing Authority, Tobacco Settlement, 5.625%, 2029			1,155,000				1,133,471
District of Columbia, Tobacco Settlement, 6.25%, 2024			450,000				451,976
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A-1”, 5.75%, 2047			585,000				460,167
Illinois Railsplitter Tobacco Settlement Authority, 5.5%, 2023			880,000				997,630
Illinois Railsplitter Tobacco Settlement Authority, 6%, 2028			2,645,000				2,956,396
Iowa Tobacco Settlement Authority, Tobacco Settlement Rev., Asset Backed, “B”, 5.6%, 2034			1,635,000				1,407,572
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.5%, 2023			5,355,000				5,023,900
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.75%, 2034			3,025,000				2,226,945
New Jersey Tobacco Settlement Financing Corp., “1-A”, 5%, 2041			2,190,000				1,611,314
						$	18,832,044
Toll Roads - 3.3%
E-470 Public Highway Authority Rev., CO, Capital Appreciation, “B”, NATL, 0%, 2027		$	4,115,000			$	1,988,615
Mid-Bay Bridge Authority, FL, Springing Lien Rev., “A”, 7.25%, 2040			1,580,000				1,745,521
North Texas Tollway Authority Rev., 6%, 2038			1,505,000				1,668,714
North Texas Tollway Authority Rev. (Special Projects System), “D”, 5%, 2031			1,110,000				1,201,464
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 7%, 2038			280,000				305,259
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 6.75%, 2043			225,000				239,499
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 6%, 2037			765,000				799,846
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 5.5%, 2042			1,225,000				1,218,005
						$	9,166,923

 

9

---

Portfolio of Investments (unaudited) – continued

 

Issuer		Shares/Par				Value ($)
Municipal Bonds - continued
Transportation - Special Tax - 0.5%
Arizona Transportation Board Highway Rev., “A”, 5%, 2036		$	1,290,000			$	1,389,059
Universities - Colleges - 13.4%
Brevard County, FL, Industrial Development Rev. (TUFF Florida Tech LLC Project), 6.75%, 2039		$	1,055,000			$	1,074,897
California Educational Facilities Authority Rev. (Chapman University), 5%, 2031			240,000				252,202
California Municipal Finance Authority Rev. (University of La Verne), “A”, 6.25%, 2040			530,000				572,639
California State University Rev., “A”, 5%, 2037			1,950,000				2,050,718
California Statewide Communities Development Authority Rev. (California Baptist University), “A”, 5.4%, 2027			370,000				371,961
California Statewide Communities Development Authority Rev. (Lancer Plaza Project), 5.625%, 2033			145,000				134,788
California Statewide Communities Development Authority Rev. (Lancer Plaza Project), 5.125%, 2023			105,000				100,148
Collier County, FL, Educational Facilities Authority Rev. (Ave Maria University, Inc. Project), “A”, 6.125%, 2043			600,000				603,960
Illinois Finance Authority Rev. (Illinois Institute of Technology), “A”, 5%, 2031			795,000				708,146
Illinois Finance Authority Rev. (Illinois Institute of Technology), “A”, 5%, 2036			1,255,000				1,084,270
Illinois Finance Authority Rev. (Roosevelt University Project), 6.25%, 2029			905,000				929,136
Marietta, GA, Development Facilities Authority Rev. (Life University), 7%, 2039			515,000				517,426
Massachusetts Development Finance Agency Rev. (Simmons College), “H”, SYNCORA, 5.25%, 2033			110,000				111,615
Massachusetts Health & Educational Facilities Authority Rev. (Massachusetts Institute of Technology), 5%, 2038 (u)			20,000,000				21,622,200
Massachusetts Health & Educational Facilities Authority Rev. (Simmons College), 8%, 2015 (c)			220,000				248,112
Massachusetts Health & Educational Facilities Authority Rev. (Simmons College), 8%, 2029			315,000				342,210
Massachusetts Health & Educational Facilities Authority Rev. (Suffolk University), “A”, 6.25%, 2030			1,370,000				1,483,833
Massachusetts Health & Educational Facilities Authority Rev. (Suffolk University), “A”, 5.75%, 2039			885,000				918,471
New Jersey Educational Facilities Authority Rev. (University of Medicine & Dentistry), “B”, 7.5%, 2019 (c)			1,065,000				1,403,457
New Jersey Educational Facilities Authority Rev. (University of Medicine & Dentistry), “B”, ETM, 6%, 2017 (c)			590,000				691,232
Pennsylvania Higher Educational Facilities Authority Rev. (Saint Francis University Project), “JJ2”, 6.25%, 2041			295,000				311,042
Puerto Rico Industrial, Tourist, Medical, & Environmental Central Facilities (University of Sacred Heart), 4.375%, 2031			70,000				47,937
Puerto Rico Industrial, Tourist, Medical, & Environmental Central Facilities (University of Sacred Heart), 5%, 2042			35,000				23,371
Regents of the University of Michigan General Rev., “C”, 5%, 2017			1,060,000				1,204,139
Washington Higher Education Facilities Authority Rev. (Whitworth University), 5.875%, 2034			540,000				560,563
						$	37,368,473
Universities - Dormitories - 1.0%
Bowling Green, OH, Student Housing Rev. (State University Project), 5.75%, 2031		$	350,000			$	354,589
California Statewide Communities Development Authority Rev. (Lancer Educational Student Housing Project), 5.625%, 2033			380,000				362,957
Illinois Finance Authority Student Housing Rev. (Illinois State University), 6.75%, 2031			415,000				452,732
Illinois Finance Authority Student Housing Rev. (Northern Illinois University Project), 6.625%, 2031			1,215,000				1,338,395
Pennsylvania Higher Educational Facilities Authority Rev. (Edinboro University Foundation), 5.8%, 2030			155,000				156,060
Pennsylvania Higher Educational Facilities Authority Rev. (Edinboro University Foundation), 6%, 2043			215,000				212,934
						$	2,877,667
Universities - Secondary Schools - 5.1%
Build NYC Resource Corp. Rev. (International Leadership Charter School Project), 6%, 2043 (n)		$	365,000			$	334,946
Build NYC Resource Corp. Rev. (South Bronx Charter School for International Cultures and the Arts), “A”, 5%, 2043			240,000				171,686
California Municipal Finance Authority Rev. (Partnerships to Uplift Communities Project), “A”, 5%, 2032			250,000				206,243
California Statewide Communities Development Authority School Facility Rev. (Aspire Public Schools), 6.375%, 2045			995,000				987,577
Clifton, TX, Higher Education Finance Corp. Rev. (Idea Public Schools), 6%, 2033			170,000				179,982
Clifton, TX, Higher Education Finance Corp. Rev. (Idea Public Schools), 5.75%, 2041			130,000				132,300
Clifton, TX, Higher Education Finance Corp. Rev. (Idea Public Schools), 5%, 2042			365,000				340,359
Clifton, TX, Higher Education Finance Corp. Rev. (Idea Public Schools), 6%, 2043			275,000				285,087
Clifton, TX, Higher Education Finance Corp. Rev. (Uplift Education), “A”, 6.125%, 2040			570,000				603,932
Clifton, TX, Higher Education Finance Corp. Rev. (Uplift Education), “A”, 4.35%, 2042			180,000				149,551
Clifton, TX, Higher Education Finance Corp. Rev. (Uplift Education), “A”, 6.25%, 2045			350,000				372,295
Colorado Educational & Cultural Facilities Authority Rev. (Montessori Charter School Project), 5%, 2037			75,000				72,880
Delaware Economic Development Authority Rev. (Newark Charter School, Inc. Project), 5%, 2042			180,000				172,345
District of Columbia Rev. (Kipp, D.C. Charter School),“A”, 6%, 2043			200,000				209,198
District of Columbia Rev. (Kipp, D.C. Charter School),“A”, 6%, 2033			80,000				85,940
Florida Development Finance Corp. Educational Facilities Rev. (Renaissance Charter School), “A”, 6%, 2032			295,000				267,282

 

10

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Portfolio of Investments (unaudited) – continued

 

Issuer		Shares/Par				Value ($)
Municipal Bonds - continued
Universities - Secondary Schools - continued
Florida Development Finance Corp. Educational Facilities Rev. (Renaissance Charter School), “A”, 6.125%, 2043		$	615,000			$	548,254
Florida Development Finance Corp. Educational Facilities Rev. (Renaissance Charter School), “A”, 6%, 2040			380,000				352,902
Florida Development Finance Corp. Educational Facilities Rev. (Renaissance Charter School), “A”, 7.625%, 2041			875,000				896,849
La Vernia, TX, Higher Education Finance Corp. Rev. (KIPP, Inc.), “A”, 6.25%, 2039			365,000				390,973
Lee County, FL, Industrial Development Authority Rev. (Lee Charter Foundation), “A”, 5.25%, 2027			430,000				421,086
Lee County, FL, Industrial Development Authority Rev. (Lee Charter Foundation), “A”, 5.375%, 2037			945,000				872,339
Maryland Industrial Development Financing Authority, Economic Development Authority Rev. (Our Lady of Good Council), “A”, 6%, 2035			150,000				151,875
North Texas Education Finance Corp., Education Rev. (Uplift Education), “A”, 5.125%, 2042			275,000				262,829
Philadelphia Authority for Industrial Development Rev. (Philadelphia Performing Arts Charter School Project), 6.5%, 2033			445,000				448,173
Philadelphia Authority for Industrial Development Rev. (Tacony Academy Charter School Project), “A-1”, 6.75%, 2033			100,000				101,722
Philadelphia, PA, Authority for Industrial Development Rev. (Philadelphia Performing Arts Charter School Project), 6.75%, 2043			755,000				759,168
Philadelphia, PA, Authority for Industrial Development Rev. (Tacony Academy Charter School Project), “A-1”, 7%, 2043			290,000				294,336
Phoenix, AZ, Industrial Development Authority Education Rev. (Choice Academies, Inc. Project), 5.625%, 2042			345,000				295,424
St. Paul, MN, Housing & Redevelopment Authority Charter School Lease Rev. (Nova Classical Academy), “A”, 6.375%, 2031			120,000				126,577
St. Paul, MN, Housing & Redevelopment Authority Charter School Lease Rev. (Nova Classical Academy), “A”, 6.625%, 2042			240,000				253,334
Utah County, UT, Charter School Finance Authority, Charter School Rev. (Early Light Academy Project), 8.25%, 2035			770,000				854,600
Utah County, UT, Charter School Finance Authority, Charter School Rev. (Hawthorne Academy Project), 8.25%, 2035			830,000				890,125
Utah County, UT, Charter School Rev. (Renaissance Academy), “A”, 5.625%, 2037			495,000				408,281
Utah County, UT, Charter School Rev. (Ronald Wilson Reagan Academy), “A”, 6%, 2038			1,255,000				1,254,975
						$	14,155,425
Utilities - Cogeneration - 1.0%
California Pollution Control Financing Authority, Water Furnishing Rev. (Poseidon Resources Desalination Project), 5%, 2045		$	2,005,000			$	1,752,290
Pennsylvania Economic Development Financing Authority Rev., Resource Recovery Rev. (Colver), “G”, 5.125%, 2015			200,000				205,038
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Central Facilities (Cogeneration Facilities - AES Puerto Rico Project), 6.625%, 2026			820,000				728,439
						$	2,685,767
Utilities - Investor Owned - 2.6%
Brazos River Authority, TX, Pollution Control Rev. (TXU Energy Co. LLC), 5%, 2041		$	835,000			$	26,094
Chula Vista, CA, Industrial Development Rev. (San Diego Gas & Electric Co.), “E”, 5.875%, 2034			470,000				512,779
Farmington, NM, Pollution Control Rev. (Public Service New Mexico), “D”, 5.9%, 2040			1,840,000				1,909,497
Hawaii Department of Budget & Finance Special Purpose Rev. (Hawaiian Electric Co. & Subsidiary), 6.5%, 2039			750,000				824,625
Massachusetts Development Finance Agency, Solid Waste Disposal Rev. (Dominion Energy Brayton), 5.75%, 2018 (c)			165,000				203,006
Matagorda County, TX (CenterPoint Energy), 5.6%, 2027			1,500,000				1,516,320
Matagorda County, TX, Pollution Control Rev. (Central Power & Light Co.), “A”, 6.3%, 2029			525,000				582,409
Owen County, KY, Waterworks System Rev. (American Water Co. Project), “A”, 6.25%, 2039			400,000				420,792
Pima County, AZ, Industrial Development Authority Rev. (Tucson Electric Power Co.), 5.75%, 2029			1,315,000				1,344,548
						$	7,340,070
Utilities - Municipal Owned - 1.8%
Los Angeles, CA, Department of Water & Power Rev. (Power System), “B”, 5%, 2038		$	695,000			$	739,577
Nebraska Public Power District Rev., “C”, 5%, 2018			1,685,000				1,824,585
Sacramento, CA, Municipal Utility District, “X”, 5%, 2028			565,000				621,833
South Carolina Public Service Authority Rev., “A”, 5.125%, 2043			525,000				543,191
South Carolina Public Service Authority Rev., “B”, 5.125%, 2043			1,300,000				1,345,045
						$	5,074,231
Utilities - Other - 2.8%
California M-S-R Energy Authority Gas Rev., “A”, 7%, 2034		$	210,000			$	271,221
California M-S-R Energy Authority Gas Rev., “A”, 6.5%, 2039			465,000				567,644
Central Plains Energy Project, NE, Gas Project Rev. (Project No.1), “A”, 5.25%, 2018			635,000				717,848
Georgia Main Street Natural Gas, Inc., Gas Project Rev., “A”, 5%, 2022			1,775,000				2,009,726
Georgia Main Street Natural Gas, Inc., Gas Project Rev., “A”, 5.5%, 2026			285,000				314,791
Indiana Bond Bank Special Program, Gas Rev., “A”, 5.25%, 2018			440,000				499,110

 

11

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Portfolio of Investments (unaudited) – continued

 

Issuer		Shares/Par				Value ($)
Municipal Bonds - continued
Utilities - Other - continued
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5%, 2014		$	455,000			$	465,251
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 2022			510,000				564,835
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 2023			80,000				89,098
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 2024			560,000				610,266
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 2026			905,000				976,830
Tennessee Energy Acquisition Corp., Gas Rev., “C”, 5%, 2025			450,000				478,980
Texas Gas Acquisition & Supply Corp III., Gas Supply Rev., 5%, 2031			240,000				242,038
						$	7,807,638
Water & Sewer Utility Revenue - 11.0%
Atlanta, GA, Water & Wastewater Rev., “A”, 6%, 2022		$	710,000			$	862,799
California Department of Water Resources, Center Valley Project Rev., “AJ”, 5%, 2035			1,990,000				2,161,399
Clairton, PA, Municipal Authority, “B”, 5%, 2037			265,000				259,562
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 6%, 2044			55,000				39,163
DeKalb County, GA, Water & Sewer Rev., “A”, 5.25%, 2028			1,100,000				1,224,344
DeKalb County, GA, Water & Sewer Rev., “A”, 5.25%, 2029			270,000				298,804
DeKalb County, GA, Water & Sewer Rev., “A”, 5.25%, 2030			910,000				1,001,337
DeKalb County, GA, Water & Sewer Rev., “A”, 5.25%, 2031			40,000				43,764
DeKalb County, GA, Water & Sewer Rev., “A”, 5.25%, 2041			1,965,000				2,086,869
Detroit, MI, Sewage Disposal System Rev., “B”, 5.5%, 2022			1,845,000				1,851,052
Detroit, MI, Sewage Disposal System Rev., Senior Lien, “A”, 5.25%, 2039			1,120,000				1,031,610
East Bay, CA, Municipal Utility District, Water System Rev., “A”, 5%, 2028			3,200,000				3,613,120
Guam Water & Wastewater System Rev., 5.25%, 2020			80,000				86,917
Guam Water & Wastewater System Rev., 5.25%, 2021			235,000				254,129
Jefferson County, AL, Sewer Rev. Warrants, Capital Appreciation, Senior Lien, “B”, 0%, 2025			15,000				8,199
Jefferson County, AL, Sewer Rev. Warrants, Capital Appreciation, Senior Lien, “B”, AGM, 0%, 2026			170,000				85,765
Jefferson County, AL, Sewer Rev. Warrants, Capital Appreciation, Senior Lien, “B”, AGM, 0%, 2029			245,000				99,340
Jefferson County, AL, Sewer Rev. Warrants, Capital Appreciation, Senior Lien, “B”, AGM, 0%, 2034			350,000				98,368
Jefferson County, AL, Sewer Rev. Warrants, Capital Appreciation, Senior Lien, “B”, AGM, 0%, 2035			660,000				172,616
Jefferson County, AL, Sewer Rev. Warrants, Subordinate Lien, “D”, 5%, 2015			55,000				57,374
Jefferson County, AL, Sewer Rev. Warrants, Subordinate Lien, “D”, 5%, 2016			120,000				128,393
Jefferson County, AL, Sewer Rev. Warrants, Subordinate Lien, “D”, 5%, 2017			160,000				174,061
Jefferson County, AL, Sewer Rev. Warrants, Subordinate Lien, “D”, 5%, 2018			165,000				180,660
Jefferson County, AL, Sewer Rev. Warrants, Subordinate Lien, “D”, 5%, 2021			185,000				198,474
Jefferson County, AL, Sewer Rev. Warrants, Subordinate Lien, “D”, 5%, 2023			275,000				291,404
King County, WA, Sewer Rev., 5%, 2040			2,750,000				2,888,078
Lehigh County, PA, Water and Sewer Authority Rev. (Allentown Concession), “A”, 5%, 2043			2,195,000				2,228,913
Lehigh County, PA, Water and Sewer Authority Rev. (Allentown Concession), Capital Appreciation, “B”, 0%, 2037			1,850,000				451,382
Madera, CA, Irrigation Financing Authority Rev., 6.5%, 2040			1,280,000				1,382,490
New York Environmental Facilities Corp., Clean Drinking Water Revolving Funds, 5%, 2041			1,345,000				1,428,202
New York Environmental Facilities, “C”, 5%, 2041			1,860,000				1,979,951
New York, NY, Municipal Water Finance Authority, Water & Sewer System Rev., “AA”, 5%, 2034			3,900,000				4,172,025
						$	30,840,564
Total Municipal Bonds						$	386,843,643
Money Market Funds - 6.7%
MFS Institutional Money Market Portfolio, 0.09%, at Net Asset Value (v)			18,651,605			$	18,651,605
Total Investments						$	405,495,248
Other Assets, Less Liabilities - (4.3)%							(12,062,696	)
ARPS, at liquidation value (issued by the fund) - (2.6)%							(7,275,000	)
VMTPS, at liquidation value (issued by the fund) - (38.1)%							(106,475,000	)
Net assets applicable to common shares - 100.0%						$	279,682,552

 

12

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Portfolio of Investments (unaudited) – continued

 

 

(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.

(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 $3,956,074 representing 1.4% of net assets applicable to common shares.

(p)	Primary inverse floater.

(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.

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

 

ARPS		Auction Rate Preferred Shares
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.
VMTPS		Variable Rate Municipal Term Preferred Shares

 

Insurers
AGM		Assured Guaranty Municipal
AMBAC		AMBAC Indemnity Corp.
ASSD GTY		Assured Guaranty Insurance Co.
FGIC		Financial Guaranty Insurance Co.
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 1/31/14

Futures Contracts Outstanding at 1/31/14

 

Description

Currency

Contracts

Value

Expiration Date

Unrealized Appreciation (Depreciation)

Liability Derivative

Interest Rate Futures

U.S. Treasury Bond 30 yr (Short)

USD

80

$10,687,500

March - 2014

$(236,530

)

At January 31, 2014, the fund had cash collateral of $200,000 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

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Supplemental Information

1/31/14 (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 January 31, 2014 in valuing the fund’s assets or liabilities:

 

Investments at Value		Level 1				Level 2				Level 3				Total
Municipal Bonds			$—				$386,843,643				$—				$386,843,643
Mutual Funds			18,651,605				—				—				18,651,605
Total Investments			$18,651,605				$386,843,643				$—				$405,495,248
Other Financial Instruments
Futures Contracts			$(236,530	)			$—				$—				$(236,530	)

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

(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			$384,472,344
Gross unrealized appreciation			17,492,766
Gross unrealized depreciation			(12,755,562	)
Net unrealized appreciation (depreciation)			$4,737,204

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

 

14

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Supplemental Information (unaudited) – continued

 

(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			18,743,196				24,026,437				(24,118,028	)			18,651,605
Underlying Affiliated Fund		Realized Gain (Loss)				Capital Gain Distributions				Dividend Income				Ending Value
MFS Institutional Money Market Portfolio			$—				$—				$5,034				$18,651,605

 

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: March 18, 2014

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: March 18, 2014

 

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

Date: March 18, 2014

 

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