Investment Portfolio

as of February 28, 2007 (Unaudited)

Principal

Amount ($)

Value ($)

Municipal Bonds and Notes 154.3%

Alabama 3.4%

Camden, AL, Industrial Development Board Revenue, AMT, Series B, 6.375%, 12/1/2024

1,000,000

1,103,240

Huntsville, AL, Hospital & Healthcare Revenue, Health Care Authority, Series A, 5.75%, 6/1/2031

5,500,000

5,880,490

Huntsville, AL, Water & Sewer Revenue, AMT, 5.75%, 10/1/2011 (a)

8,560,000

9,074,713

16,058,443

Arizona 1.6%

Arizona, Hospital & Healthcare Revenue, Health Facilities Authority, Catholic Healthcare West, Series A, 6.625%, 7/1/2020

7,000,000

7,701,890

California 18.6%

California, Electric Revenue, Department of Water Resources and Power Supply, Series A, 5.375%, 5/1/2022

7,350,000

8,041,782

California, Special Assessment Revenue, Golden State Tobacco Securitization Corp.:

Series A, 5.0%, 6/1/2038 (a)

2,500,000

2,649,825

Series B, 5.625%, 6/1/2038

7,080,000

7,836,852

Series 2003-A-1, 6.75%, 6/1/2039

11,730,000

13,453,958

California, State General Obligation:

Series C-1, 3.52% *, 5/1/2033, Landesbank Hessen-Thuringen (b)

1,100,000

1,100,000

Series 2, 5.0%, 9/1/2019

4,385,000

4,740,799

5.0%, 12/1/2020

4,600,000

4,933,454

5.0%, 3/1/2022 (a)

3,500,000

3,761,380

5.0%, 6/1/2028

3,000,000

3,190,590

5.125%, 4/1/2024

4,400,000

4,721,112

5.25%, 12/1/2021

10,215,000

11,156,414

5.25%, 4/1/2030

6,250,000

6,607,938

California, State Public Works Board, Lease Revenue, Department of Corrections & Rehabilitation, Series H, 5.0%, 11/1/2031

2,500,000

2,658,550

California, State Public Works Board, Lease Revenue, Department of Mental Health, Series A, 5.5%, 6/1/2021

5,000,000

5,559,600

California, State Revenue Lease, Public Works Board, Department of Corrections, Series C, 5.5%, 6/1/2021

2,500,000

2,762,825

Mount Diablo, CA, Unified School District, Election of 2002, 5.0%, 6/1/2029 (a)

2,000,000

2,141,540

Palmdale, CA, Water District Revenue, Certificates of Participation, 5.0%, 10/1/2034 (a)

2,000,000

2,118,740

87,435,359

Colorado 6.8%

Colorado, Hospital & Healthcare Revenue, Portercare Adventist Health Project, 6.5%, 11/15/2031

1,000,000

1,127,750

Colorado, Hospital & Healthcare Revenue, Poudre Valley Health Facilities:

Series A, 5.5%, 12/1/2017 (a)

6,145,000

6,490,165

Series A, 6.0%, 12/1/2015 (a)

5,705,000

6,099,615

Series A, 6.0%, 12/1/2016 (a)

2,000,000

2,138,340

Colorado, Single Family Housing Revenue, AMT, Series B2, 7.25%, 10/1/2031

235,000

237,117

Colorado, Transportation/Tolls Revenue, Anticipation Note, Prerefunded, 6.0%, 6/15/2011 (a)

10,000,000

10,775,600

Denver, CO, Airport Revenue, AMT, Series A, 6.0%, 11/15/2014 (a)

5,000,000

5,348,700

32,217,287

District of Columbia 8.6%

District of Columbia, Ballpark Revenue, Series B-1, 5.0%, 2/1/2017 (a)

2,275,000

2,473,289

District of Columbia, Core City General Obligation, Series B, 5.5%, 6/1/2011 (a)

20,000,000

21,409,200

District of Columbia, ETM, Series A, Prerefunded, 5.5%, 6/1/2014 (a)

640,000

670,592

District of Columbia, General Obligation:

Prerefunded, Series A-2005, 5.25%, 6/1/2027 (a)

2,585,000

2,661,102

Series A-2005, 5.25%, 6/1/2027 (a)

8,245,000

8,456,402

District of Columbia, Howard University Revenue, Series A, 5.0%, 10/1/2023 (a)

2,810,000

3,037,751

District of Columbia, State General Obligation, Series A, 5.5%, 6/1/2014 (a)

1,860,000

1,943,551

40,651,887

Florida 6.5%

Dade County, FL, Airport Revenue, AMT, Series A, 5.75%, 10/1/2026 (a)

13,000,000

13,278,070

Dade County, FL, Special Assessment Revenue:

Series B, Prerefunded, Zero Coupon, 10/1/2022 (a)

7,735,000

3,119,680

Series B, Prerefunded, Zero Coupon, 10/1/2024 (a)

16,955,000

6,022,924

Hillsborough County, FL, Industrial Development Revenue, University Community Hospital Project, Series A, 5.625%, 8/15/2023

1,000,000

1,044,300

Miami-Dade County, FL, Transportation/Tolls Revenue, Expressway Authority:

6.0%, 7/1/2013 (a)

1,665,000

1,797,884

6.0%, 7/1/2014 (a)

1,000,000

1,079,480

Orange County, FL, Health Facilities Authority Revenue, Orlando Regional Healthcare System, 5.75%, 12/1/2032

1,000,000

1,099,120

Palm Beach County, FL, School District Revenue Lease, Series A, Prerefunded, 5.75%, 8/1/2017 (a)

2,850,000

3,063,750

30,505,208

Georgia 1.9%

Atlanta, GA, General Obligation, Series A, 5.0%, 12/1/2021 (a)

4,455,000

4,837,774

Atlanta, GA, Water & Wastewater Revenue, Water Utilities Improvements, 5.0%, 11/1/2024 (a)

4,000,000

4,274,160

9,111,934

Hawaii 7.3%

Hawaii, Airport System Revenue, AMT, Series B, 6.5%, 7/1/2013 (a)

8,800,000

9,572,728

Hawaii, Electric Revenue, Department of Budget & Finance, AMT:

Series D, 6.15%, 1/1/2020 (a)

2,195,000

2,302,292

Series A, 6.2%, 5/1/2026 (a)

13,200,000

13,251,612

Hawaii, Port Authority Revenue, AMT:

Series A, 6.0%, 7/1/2011 (a)

2,950,000

3,175,793

Series A, 6.0%, 7/1/2012 (a)

3,135,000

3,351,503

Hawaii, State General Obligation, Series CT, Prerefunded, 5.75%, 9/1/2014 (a)

2,310,000

2,447,791

34,101,719

Idaho 0.0%

Idaho, Single Family Housing Revenue, AMT, Series C2, 6.9%, 7/1/2025

110,000

110,187

Illinois 9.2%

Chicago, IL, Airport Revenue, O'Hare International Airport, AMT, 5.5%, 1/1/2014 (a)

10,000,000

10,510,000

Chicago, IL, Core City General Obligation:

Series A, Prerefunded, 6.0%, 1/1/2014 (a)

2,085,000

2,257,221

Series A, Prerefunded, 6.125%, 1/1/2015 (a)

2,000,000

2,173,000

Series A, 6.125%, 1/1/2016 (a)

2,000,000

2,173,000

Chicago, IL, O'Hare International Airport Revenue, Series A, 5.0%, 1/1/2019 (a)

4,000,000

4,321,520

Chicago, IL, Other General Obligation, Neighborhoods Alive 21 Project:

Series A, Prerefunded, 6.0%, 1/1/2015 (a)

1,000,000

1,082,600

Series A, 6.0%, 1/1/2017 (a)

1,000,000

1,082,600

Chicago, IL, Water Revenue, Series A, 5.0%, 11/1/2020 (a)

3,615,000

3,934,241

Illinois, Development Finance Authority, Hospital Revenue, Adventist Health System, Sunbelt Obligation, 5.5%, 11/15/2020

2,500,000

2,640,650

Illinois, Health Facilities Authority Revenue, Children's Memorial Hospital, Series A, Prerefunded, 5.625%, 8/15/2019 (a)

4,000,000

4,220,600

Illinois, Higher Education Revenue, DePaul University, Educational Facilities Authority:

Prerefunded, 5.625%, 10/1/2013 (a)

2,695,000

2,897,637

Prerefunded, 5.625%, 10/1/2015 (a)

1,710,000

1,838,575

Illinois, Sales & Special Tax Revenue, Metropolitan Pier & Exposition Authority:

Series A, ETM, 5.5%, 6/15/2017 (a)

1,955,000

2,247,605

Series A, 5.5%, 6/15/2017 (a)

1,555,000

1,777,862

43,157,111

Indiana 1.2%

Indiana, Hospital & Healthcare Revenue, Health Facilities Authority, 5.5%, 11/1/2031

5,000,000

5,426,100

Kansas 0.7%

Overland Park, KS, Industrial Development Revenue, Series A, 7.375%, 1/1/2032

3,000,000

3,283,440

Kentucky 1.4%

Kentucky, Economic Development Finance Authority, Health System Revenue, Norton Healthcare:

Series A, Prerefunded, 6.5%, 10/1/2020

790,000

870,785

Series A, 6.5%, 10/1/2020

1,210,000

1,307,841

Series A, Prerefunded, 6.625%, 10/1/2028

3,130,000

3,463,126

Series A, 6.625%, 10/1/2028

870,000

963,525

6,605,277

Louisiana 0.5%

Louisiana, Electric Revenue, 5.75%, 1/1/2013 (a)

2,000,000

2,201,920

Maine 1.4%

Maine, Hospital & Healthcare Revenue, Series D, 5.7%, 7/1/2013 (a)

375,000

375,574

Maine, Transportation/Tolls Revenue, 5.0%, 7/1/2017 (a)

6,165,000

6,322,454

6,698,028

Maryland 0.6%

Maryland, Hospital & Healthcare Revenue, University of Maryland Medical System, 6.75%, 7/1/2030

2,500,000

2,764,975

Massachusetts 3.5%

Massachusetts, Airport Revenue, AMT, Series B, 5.5%, 7/1/2009 (a)

8,000,000

8,305,200

Massachusetts, Airport Revenue, U.S. Airways, Inc. Project, AMT, Series A,

5.875%, 9/1/2023 (a)

5,000,000

5,109,700

Massachusetts, Port Authority Revenue, AMT, Series B, 5.5%, 7/1/2015 (a)

3,000,000

3,137,100

16,552,000

Michigan 2.1%

Chippewa County, MI, Hospital & Healthcare Revenue, Chippewa County War Memorial, Series B, 5.625%, 11/1/2014

1,500,000

1,511,250

Michigan, Industrial Development Revenue:

5.5%, 6/1/2018 (a)

3,425,000

3,615,088

5.75%, 6/1/2016 (a)

4,640,000

4,932,830

10,059,168

Minnesota 1.6%

Minneapolis & St. Paul, MN, Airport Revenue, AMT, Series B, 6.0%, 1/1/2012 (a)

4,395,000

4,669,116

Minneapolis & St. Paul, MN, Port Authority Revenue, AMT, Series B, 5.625%, 1/1/2015 (a)

2,500,000

2,606,100

7,275,216

Missouri 0.1%

Missouri, Hospital & Healthcare Revenue, Lake of the Ozarks General Hospital, 6.5%, 2/15/2021

365,000

369,333

Nevada 2.0%

Las Vegas, NV, Core City General Obligation, Water & Sewer Revenue, 5.375%, 4/1/2014 (a)

1,000,000

1,065,170

Nevada, State General Obligation, Capital Improvement and Cultural Affairs Project, Series A, 5.5%, 2/1/2014

2,575,000

2,687,940

Washoe County, NV, School District General Obligation, Prerefunded, 5.75%, 6/1/2014 (a)

5,450,000

5,751,058

9,504,168

New Jersey 11.0%

New Jersey, Casino Reinvestment Development Authority, Hotel Room Fee Revenue, 5.0%, 1/1/2025 (a)

4,000,000

4,314,120

New Jersey, Economic Development Authority Revenue, Cigarette Tax, 5.75%, 6/15/2034

1,090,000

1,176,546

New Jersey, Hospital & Healthcare Revenue, General Hospital Center at Passaic, ETM, 6.75%, 7/1/2019 (a)

5,000,000

6,166,050

New Jersey, Industrial Development Revenue, American Water Co., Inc. Project, AMT, Series A, 6.875%, 11/1/2034 (a)

10,775,000

10,908,287

New Jersey, Industrial Development Revenue, Economic Development Authority, Harrogate, Inc., Series A, 5.875%, 12/1/2026

1,400,000

1,440,040

New Jersey, Resource Recovery Revenue, Tobacco Settlement Financing Corp., 5.75%, 6/1/2032

2,280,000

2,445,573

New Jersey, State Agency General Obligation Lease, Transportation Trust Fund Authority, Series A, Prerefunded, 5.75%, 6/15/2017

10,000,000

10,663,800

New Jersey, Transportation/Tolls Revenue, Economic Development Authority, Series A, Prerefunded, 5.75%, 5/1/2013 (a)

6,000,000

6,267,840

New Jersey, Transportation/Tolls Revenue, Garden State Parkway Project, Prerefunded, 5.6%, 1/1/2017 (a)

8,000,000

8,501,520

51,883,776

New York 14.2%

Nassau County, NY, Hospital & Healthcare, 6.0%, 8/1/2015 (a)

3,390,000

3,637,334

New York, State Agency General Obligation Lease, Higher Education Revenue, Dormitory Authority, Bronx-Lebanon Hospital Center, Series E, 5.2%, 2/15/2016

1,770,000

1,822,304

New York, State Agency General Obligation Lease, Higher Education Revenue, Dormitory Authority, City University, Series A, 5.625%, 7/1/2016

1,500,000

1,679,910

New York, State Agency General Obligation Lease, Higher Education Revenue, Dormitory Authority, Jamaica Hospital, Series F, 5.2%, 2/15/2016

1,000,000

1,027,040

New York, State General Obligation, Tobacco Settlement Financing Corp.:

Series A-1, 5.25%, 6/1/2022 (a)

10,000,000

10,716,800

Series A-1, 5.5%, 6/1/2019

1,900,000

2,075,522

New York, Tobacco Settlement Financing Corp., Series B-1C, 5.5%, 6/1/2019

5,500,000

6,001,710

New York, Transportation/Tolls Revenue:

Prerefunded, 5.625%, 4/1/2013 (a)

5,000,000

5,252,100

Prerefunded, 5.75%, 4/1/2014 (a)

2,000,000

2,105,840

New York, NY, Core City General Obligation, Series F, 5.25%, 8/1/2015

5,000,000

5,290,000

New York, NY, General Obligation:

Series G, 5.0%, 12/1/2023

2,000,000

2,130,780

Series D, 5.0%, 11/1/2024

7,500,000

7,983,375

Series F, Prerefunded, 5.25%, 8/1/2015 (a)

50,000

51,233

Series F, 5.25%, 8/1/2015 (a)

4,950,000

5,061,820

New York, NY, Municipal Water Finance Authority, Water & Sewer Systems Revenue, Series D, 5.0%, 6/15/2037

5,000,000

5,315,300

New York, NY, Sales & Special Tax Revenue, Transitional Finance Authority:

Series B, Prerefunded, 6.125%, 11/15/2014

1,645,000

1,787,441

Series B, 6.125%, 11/15/2014

355,000

385,739

Series B, Prerefunded, 6.125%, 11/15/2015

3,000,000

3,257,850

Niagara Falls, NY, School District General Obligation, 5.6%, 6/15/2014 (a)

1,180,000

1,328,987

66,911,085

North Carolina 1.7%

Charlotte, NC, Airport Revenue, AMT:

Series B, 5.75%, 7/1/2013 (a)

2,480,000

2,595,146

Series B, 5.875%, 7/1/2014 (a)

1,140,000

1,195,826

North Carolina, Electric Revenue, Municipal Power Agency:

Series C, 5.375%, 1/1/2017

1,000,000

1,068,790

Series B, 6.375%, 1/1/2013

3,000,000

3,222,060

8,081,822

North Dakota 0.8%

Grand Forks, ND, Hospital & Healthcare Revenue, Altru Health Care System, 7.125%, 8/15/2024

3,400,000

3,746,290

Ohio 1.3%

Green Springs, OH, Senior Care Revenue, St. Francis Health Care Center Project, Series A, 7.125%, 5/15/2025

6,000,000

6,000,300

Oregon 2.3%

Oregon, State General Obligation Lease, Department of Administrative Services, Series A, Prerefunded, 6.25%, 5/1/2017 (a)

1,000,000

1,087,860

Oregon, State Revenue Lease, Department of Administrative Services, Series A, Prerefunded, 6.25%, 5/1/2018 (a)

1,000,000

1,087,860

Portland, OR, Special Assessment Revenue, Downtown Waterfront:

Series A, 5.625%, 6/15/2015 (a)

3,100,000

3,307,917

Series A, 5.75%, 6/15/2018 (a)

2,225,000

2,386,735

Series A, 5.75%, 6/15/2019 (a)

2,820,000

3,024,986

10,895,358

Pennsylvania 2.3%

Pennsylvania, Hospital & Healthcare Revenue, Economic Development Financing Authority, UPMC Health System, Series A, 6.0%, 1/15/2031

2,570,000

2,783,644

Philadelphia, PA, Gas Works Revenue, Series A-1, 5.0%, 9/1/2029 (a)

5,000,000

5,277,700

Philadelphia, PA, Municipal Authority Revenue, Series B, 5.25%, 11/15/2018 (a)

2,500,000

2,692,325

10,753,669

Puerto Rico 0.2%

Commonwealth of Puerto Rico, Public Improvement, Series A, 5.25%, 7/1/2030

1,000,000

1,088,850

Rhode Island 0.9%

Rhode Island, Special Assessment Revenue, Series A, 6.125%, 6/1/2032

4,000,000

4,272,840

South Carolina 2.6%

Greenwood County, SC, Hospital & Healthcare Revenue, South Carolina Memorial Hospital, 5.5%, 10/1/2031

1,500,000

1,585,740

South Carolina, Jobs Economic Development Authority, Hospital Facilities Revenue, Palmetto Health Alliance:

Series C, Prerefunded, 7.0%, 8/1/2030

4,825,000

5,717,335

Series C, 7.0%, 8/1/2030

595,000

701,321

Series A, Prerefunded, 7.375%, 12/15/2021

2,000,000

2,290,880

South Carolina, Tobacco Settlement Revenue Management Authority, Series B, 6.0%, 5/15/2022

2,000,000

2,129,940

12,425,216

Tennessee 4.9%

Clarksville, TN, Natural Gas Acquisition Corp., Gas Revenue, 5.0%, 12/15/2021

2,000,000

2,206,300

Memphis-Shelby County, TN, Airport Revenue, AMT, Series D, 6.25%, 3/1/2017 (a)

4,690,000

5,029,978

Shelby County, TN, Health Educational & Housing Facility Board, Hospital Revenue, Methodist Health Care:

Prerefunded, 6.5%, 9/1/2026

4,385,000

5,002,320

EMT, 6.5%, 9/1/2026

2,615,000

2,983,140

Tennessee, Energy Acquisition Corp., Gas Revenue, Series A, 5.25%, 9/1/2019

7,000,000

7,836,220

23,057,958

Texas 21.0%

Austin, TX, Sales & Special Tax Revenue, Hotel Occupancy Tax:

6.0%, 11/15/2013 (a)

3,190,000

3,383,952

6.0%, 11/15/2015 (a)

3,480,000

3,691,584

6.0%, 11/15/2016 (a)

3,625,000

3,845,400

Brazos River, TX, Pollution Control Revenue, Brazos River Authority, Texas Utilities Electric Co. Project, AMT, Series C, 5.75%, 5/1/2036

3,965,000

4,093,982

Carrollton, TX, Farmers Branch Independent School District, School Building, 4.75%, 2/15/2032

5,000,000

5,195,100

Dallas-Fort Worth, TX, Airport Revenue, International Airport, AMT, Series A, 5.875%, 11/1/2016 (a)

6,500,000

7,027,540

El Paso, TX, State General Obligation:

5.875%, 8/15/2012 (a)

1,000,000

1,010,320

5.875%, 8/15/2013 (a)

1,570,000

1,586,202

Granbury, TX, Independent School District, 5.0%, 8/1/2024

3,365,000

3,604,824

Harlandale, TX, Independent School District, 5.0%, 8/15/2030

6,775,000

7,204,738

Harris County, TX, Hospital & Healthcare Revenue, Health Facilities Development Corp., Memorial Hermann Healthcare Systems, Series A, 6.375%, 6/1/2029

5,500,000

6,113,360

Houston, TX, Airport Revenue, People Mover Project, AMT, Series A, 5.5%, 7/15/2017 (a)

3,300,000

3,318,282

Houston, TX, Port Authority Revenue, Airport Revenue, AMT, Series A, 5.875%, 7/1/2014 (a)

3,960,000

4,200,055

Red River, TX, School District Revenue Lease, St. Mark's School Project, 6.0%, 8/15/2019

5,390,000

5,712,376

Socorro, TX, Independent School District, 5.0%, 8/15/2025

5,135,000

5,494,861

Tarrant County, TX, Hospital & Healthcare Revenue, Health Facilities Development Corp., 6.7%, 11/15/2030

4,500,000

5,002,560

Texas, Industrial Development Revenue, Waste Disposal Authority, AMT, Series A, 6.1%, 8/1/2024

2,000,000

2,161,920

Texas, Lower Neches Valley Authority, Industrial Development Corp., Exempt Facilities Revenue, AMT, Series B-2, 3.6% *, 12/1/2039

1,500,000

1,500,000

Texas, State General Obligation, College Student Loans, AMT, 5.0%, 8/1/2021

4,015,000

4,017,088

Texas, State Turnpike Authority, Dallas Northway Revenue, 5.5%, 1/1/2015 (a)

14,605,000

15,098,357

Texas, White Settlement, Independent School District, 5.125%, 8/15/2026

5,035,000

5,440,871

98,703,372

Washington 5.4%

Seattle, WA, Airport Revenue, AMT, Series B, 6.0%, 2/1/2013 (a)

7,355,000

8,144,338

Seattle, WA, Special Assessment Revenue, AMT:

Series B, 5.5%, 9/1/2011 (a)

1,085,000

1,144,339

Series B, 5.75%, 9/1/2013 (a)

1,045,000

1,101,670

Skagit County, WA, School District General Obligation, School District No. 1, Burlington Edison, 5.625%, 12/1/2014 (a)

1,570,000

1,686,039

Snohomish County, WA, Electric Revenue, Public Utility District No. 1, 5.375%, 12/1/2024 (a)

3,000,000

3,163,620

Washington, Electric Revenue, Energy Northwest Columbia Generating, Series B, 6.0%, 7/1/2018 (a)

3,000,000

3,323,070

Washington, Hospital & Healthcare Revenue, Group Health Coop of Puget Sound, 5.375%, 12/1/2017 (a)

1,500,000

1,605,405

Washington, State General Obligation, Series A, 5.5%, 7/1/2016

4,835,000

5,036,523

25,205,004

West Virginia 4.4%

West Virginia, Hospital & Healthcare Revenue, Hospital Finance Authority, Charleston Medical Center:

Series A, 6.75%, 9/1/2022

2,355,000

2,583,482

6.75%, 9/1/2030

395,000

433,595

West Virginia, Hospital Finance Authority, Charleston Medical Center:

Prerefunded, 6.75%, 9/1/2022

9,645,000

10,697,752

Prerefunded, 6.75%, 9/1/2030

3,605,000

3,998,486

West Virginia, Water & Sewer Revenue, Water Development Authority, Series B, 5.25%, 11/1/2023 (a)

2,740,000

2,976,571

20,689,886

Wisconsin 2.3%

Badge, WI, Tobacco Asset Securitization Corp., 6.125%, 6/1/2027

4,195,000

4,492,677

Wisconsin, Hospital & Healthcare Revenue, Health & Education Facilities Authority, Aurora Health Care, Inc., Series A, 5.6%, 2/15/2029

6,000,000

6,222,060

10,714,737

Total Municipal Bonds and Notes (Cost $677,516,397)

726,220,813

Municipal Inverse Floating Rate Notes 2.1%

Texas

Texas, Municipal Gas Acquisition & Supply Corp. I, Gas Supply Revenue, Series B, 4.148%, 12/15/2017 (c)

10,000,000

10,035,000

Trust: Texas, Municipal Gas Acquisition & Supply Corp. I, Gas Supply Revenue, RITES-

PA-1448, 144A, 4.376%, 12/15/2017, Leverage Factor at purchase date: 2 to 1

(Cost $9,994,000)

% of

Net Assets

Value ($)

Total Investment Portfolio (Cost $ 687,510,397)

156.4

736,255,813

Other Assets and Liabilities, Net

(0.1)

(535,798)

Preferred Shares, at Redemption Value

(56.3)

(265,000,000)

Net Assets Applicable to Common Shareholders

100.0

470,720,015

For information on the Fund’s policies regarding the valuation of investments and other significant accounting policies, please refer to the Fund’s most recent semi-annual or annual financial statements.

*

Variable rate demand notes are securities whose interest rates are reset periodically at market levels. These securities are often payable on demand and are shown at their current rates as of February 28, 2007.

(a)

Bond is insured by one of these companies:

As a % of Total

Insurance Coverage

Investment Portfolio

Ambac Financial Group

16.4

Financial Guaranty Insurance Company

12.3

Financial Security Assurance, Inc.

15.2

MBIA Corp.

11.8

(b)

Security incorporates a letter of credit from a major bank.

(c)

Security forms part of the below tender option bond trust. Principal amount and value shown take into account the leverage factor.

144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

AMT: Subject to alternative minimum tax.

ETM: Bonds bearing the description ETM (escrow to maturity) are collateralized usually by US Treasury securities which are held in escrow and used to pay principal and interest on bonds so designated.

Prerefunded: Bonds which are prerefunded are collateralized usually by US Treasury securities which are held in escrow and are used to pay principal and interest on tax-exempt issues and to retire the bonds in full at the earliest refunding date.

RITES: Residual Interest Tax Exempt Security

ITEM 2.

CONTROLS AND PROCEDURES

(a)          The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.

(b)          There have been no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last half-year (the registrant’s second fiscal half-year in the case of the annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting.

ITEM 3.

EXHIBITS

Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

Registrant:

DWS Municipal Income Trust

By:

/s/Michael G. Clark

Michael G. Clark

Date:

April 9, 2007

Registrant:

DWS Municipal Income Trust

By:

/s/Michael G. Clark

Michael G. Clark

Date:

April 9, 2007

By:

/s/Paul Schubert

Paul Schubert