a_managedmuni.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES




Investment Company Act file number: (811-05740)
Exact name of registrant as specified in charter: Putnam Managed Municipal Income Trust
Address of principal executive offices: One Post Office Square, Boston, Massachusetts 02109
Name and address of agent for service: Robert T. Burns, Vice President
One Post Office Square
Boston, Massachusetts 02109
Copy to:         Bryan Chegwidden, Esq.
Ropes & Gray LLP
1211 Avenue of the Americas
New York, New York 10036
Registrant's telephone number, including area code: (617) 292-1000
Date of fiscal year end: October 31, 2016
Date of reporting period: November 1, 2015 — April 30, 2016



Item 1. Report to Stockholders:

The following is a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Investment Company Act of 1940:




Putnam
Managed Municipal
Income Trust

Semiannual report
4 | 30 | 16

Message from the Trustees  1 

About the fund  2 

Performance snapshot  4 

Interview with your fund’s portfolio manager  5 

Your fund’s performance  10 

Terms and definitions  12 

Other information for shareholders  13 

Summary of dividend reinvestment plans  14 

Financial statements  16 

Shareholder meeting results  49 

 

Consider these risks before investing: Lower-rated bonds may offer higher yields in return for more risk. Bond investments are subject to interest-rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments). Interest-rate risk is greater for longer-term bonds, and credit risk is greater for below-investment-grade bonds. Unlike bonds, funds that invest in bonds have fees and expenses. Bond prices may fall or fail to rise over time for several reasons, including general financial market conditions, changing market perceptions of the risk of default, changes in government intervention, and factors related to a specific issuer or industry. These factors may also lead to periods of high volatility and reduced liquidity in the bond markets. You can lose money by investing in the fund. The fund’s shares trade on a stock exchange at market prices, which may be lower than the fund’s net asset value.



Message from the Trustees

Dear Fellow Shareholder:

The U.S. economy and markets appear to have hit a soft patch, as demonstrated by sluggish gross domestic product (GDP) growth in the first quarter, a lull in jobs expansion, and a continued slowdown in consumer spending. Moreover, corporate earnings have been tepid, leading the stock market to lose some of the momentum it showed from mid-February through the end of March.

Overseas, we believe that many potential headwinds exist. These include political pressures in the European Union and disappointing policy measures in Japan, as well as continuing unsteady growth in many emerging markets.

Despite the recent slowdown, we think the underpinnings of the U.S. economy remain strong. Unemployment remains at multiyear lows and, while first-quarter GDP expansion was weak, the U.S. economy continues to improve on the basis of generally strong fundamentals. Housing is a bright spot in the economy, boosted by low interest rates and robust demand as more Americans find work.

Putnam’s portfolio managers are positioned to maneuver in all types of markets with active investment strategies and support from teams of equity and fixed-income research analysts. The interview on the following pages provides an overview of your fund’s performance for the reporting period ended April 30, 2016, as well as an outlook for the coming months.

It may be a good time to consult your financial advisor, who can help ensure that your portfolio is aligned with your individual goals, risk tolerance, and investing time horizon.

As always, thank you for investing with Putnam.







Data are historical. Past performance does not guarantee future results. More recent returns may be less or more than those shown. Investment return and net asset value will fluctuate, and you may have a gain or a loss when you sell your shares. Performance assumes reinvestment of distributions and does not account for taxes. Fund returns in the bar chart are at NAV. See pages 5 and 10–11 for additional performance information, including fund returns at market price. Index and Lipper results should be compared with fund performance at NAV. Fund results reflect the use of leverage, while index results are unleveraged and Lipper results reflect varying use of, and methods for, leverage.

* Returns for the six-month period are not annualized, but cumulative.

  Managed Municipal Income Trust 

 



Interview with your fund’s portfolio manager


The six-month reporting period ended April 30, 2016, proved to be a hospitable environment for fixed-income securities. How did municipal bonds perform?

Amid heightened market uncertainty surrounding U.S. central bank policy, low commodity prices, and China’s economic slowdown, municipal bonds maintained their positive monthly momentum during the reporting period. January 2016 was an especially favorable month for the asset class, when the Barclays Municipal Bond Index rose 1.19%. For the period overall, municipal bonds outperformed a wide variety of major U.S. fixed-income and global equity indexes.

After the Federal Reserve took the widely expected first step on the path of gradual normalization of interest rates in December 2015, investors began pricing in additional rate increases in 2016. However, a deep slide in oil prices early in 2016 fueled worries of slowing economic growth globally and raised questions about the central bank’s interest-rate policy. In this environment, municipal bonds benefited from a flight to quality in response to financial market volatility, slower growth, and an increasingly dovish Fed. During the final months of the reporting period, diminished expectations for near-term rate hikes and increased expectations for a more gradual pace of future hikes helped to support municipal bond prices.


This comparison shows your fund’s performance in the context of broad market indexes for the six months ended 4/30/16. See pages 4 and 10–11 for additional fund performance information. Index descriptions can be found on page 12.

Managed Municipal Income Trust   5 

 



Why has the asset class been so resilient?

Municipal bond prices have benefited from favorable market technicals, or their supply/ demand dynamics. For the first four months of 2016, new-issue supply fell while demand rose, as measured by mutual fund inflows. Municipal bond mutual funds saw over $19 billion in new assets, which was the largest level of inflows over the past 25 years for the January to April time frame. Demand for municipal bonds has been dominated by households at the retail level, which comprised about 70% of municipal bond investors at the end of 2015, in our estimation. Meanwhile, the biggest change that we have seen has come in the bank channel, whose shares of municipal bond assets have doubled since 2008. As such, demand for municipal bonds appears to have moved beyond the traditional base of tax-sensitive investors to include investors drawn to their high-quality, relatively low-volatility income potential, in our view.

Overall, we believe municipal credit fundamentals have been sound and defaults have been low. Credit rating upgrades of issuers have exceeded downgrades due to economic and financial stabilization across most public finance sectors. At the local level, property values have improved, contributing to modest increases in tax receipts.

Are there any areas of concern?

We continued to see weakness in some isolated high-profile credits. Fiscal economic data remained troubling in Puerto Rico. Investors closely monitored developments leading up to the constitutionally guaranteed Government Development Bank [GDB] debt service payment, which was due May 1, 2016, and which Puerto Rico ultimately failed to pay. [The fund did not own GDB debt during


Credit qualities are shown as a percentage of the fund’s net assets (common and preferred shares) as of 4/30/16. A bond rated BBB or higher (SP-3 or higher, for short-term debt) is considered investment grade. This chart reflects the highest security rating provided by one or more of Standard & Poor’s, Moody’s, and Fitch. Ratings may vary over time.

Cash and net other assets, if any, represent the market value weights of cash, derivatives, and short-term securities in the portfolio. The fund itself has not been rated by an independent rating agency.

6   Managed Municipal Income Trust 

 



the reporting period.] Investors also focused on a Republican-sponsored bill to address Puerto Rico’s fiscal crisis, which the House failed to bring for a vote before the May 1 debt service payment. A separate restructuring law was also discussed, but ultimately rejected, by the U.S. Supreme Court. Known as the Recovery Act, the proposal would have allowed some public agencies to ask bondholders to accept losses on securities in the form of lower payments. A high degree of uncertainty remains as to the timing and scope of Puerto Rico’s debt restructuring, especially as multiple legal challenges are likely, in our view.


We are also closely following a handful of states and municipalities grappling with budget challenges posed by unfunded pension liabilities and health-care costs. However, while these various issuers, as well as Puerto Rico, are facing long-running headwinds, we believe investors have shown a willingness to isolate these situations from the overall municipal market.

How did Putnam Managed Municipal Income Trust perform in this environment?

For the six months ended April 30, 2016, the fund outperformed its benchmark, the Barclays Municipal Bond Index, by a comfortable margin but slightly underperformed the average return of its Lipper peer group.


Top ten state allocations are shown as a percentage of the fund’s net assets (common and preferred shares) as of 4/30/16. Investments in Puerto Rico represented 0.48% of the fund’s net assets. Summary information may differ from the portfolio schedule included in the financial statements due to the differing treatment of interest accruals, the floating rate portion of tender option bonds, derivative securities, if any, the use of different classifications of securities for presentation purposes, and rounding. Holdings and allocations may vary over time.

Managed Municipal Income Trust   7 

 



With the Fed beginning the process of normalizing interest rates, what was your investment approach during the reporting period?

Many of the same investment themes remained in place — namely, duration positioning, or interest-rate sensitivity, that is slightly below the median of the fund’s Lipper peer group; an overweight exposure, relative to the benchmark, to municipal bonds rated Baa; a preference for essential service utilities, continuing-care retirement communities, and higher education bonds relative to the fund’s Lipper group; and an underweight, relative to the fund’s peers, to Puerto Rico issuers. However, at the beginning of 2016, in response to market volatility, marginal growth, and a dovish Fed, we extended the portfolio’s duration by a modest amount, becoming slightly less defensive.

We do not expect municipal credit spreads [the difference in yield between higher- and lower-quality municipal bonds] to widen by a large margin in the near term, nor do we believe that spreads will tighten much, as spreads remain close to the lowest point since the onset of the credit crisis. In our opinion, downside risks include flows to the asset class turning decidedly negative or interest rates spiking higher. At the end of the reporting period, we maintained a slightly shorter-duration position and a somewhat higher cash allocation in the portfolio relative to the fund’s Lipper peers.

The Fed does not appear to be in a rush to raise rates. What is your current outlook for rates and the municipal bond market?

At its March meeting, the central bank’s Federal Open Market Committee [FOMC] reduced its rate-hike forecast for the


This chart shows how the fund’s top weightings have changed over the past six months. Allocations are shown as a percentage of the fund’s net assets (common and preferred shares). Current period summary information may differ from the information in the portfolio schedule notes included in the financial statements due to the inclusion of derivative securities, any interest accruals, the use of different classifications of securities for presentation purposes, and rounding. Holdings and allocations may vary over time.

8   Managed Municipal Income Trust 

 



remainder of the year to two hikes from the four that policymakers had anticipated at their December 2015 meeting. The FOMC left its benchmark rate unchanged at its April meeting.

With the Fed’s current assessment that an accommodative policy is appropriate given global risk factors, Fed Chair Janet Yellen repeatedly communicated that the central bank would move cautiously — leading some to believe that the next rate hike won’t occur until 2017. Ultimately, however, the path remains dictated by data releases and global macroeconomic factors, in our view. As such, we expect gradual rate increases, but the timing remains uncertain.

Municipal bonds were among the best-performing asset classes in 2015. As we saw in the first four months of 2016, the asset class remained on solid footing, with many investors drawn during the period to the relative stability and income potential of municipal bonds as a refuge from global macroeconomic volatility. We continue to believe that municipal bonds are a compelling long-term investment strategy for income-oriented investors.

Thank you, Paul, for your time and insights today.

The views expressed in this report are exclusively those of Putnam Management and are subject to change. They are not meant as investment advice.

Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk. Statements in the Q&A concerning the fund’s performance or portfolio composition relative to those of the fund’s Lipper peer group may reference information produced by Lipper Inc. or through a third party.

Portfolio Manager Paul M. Drury has a B.A. from Suffolk University. He has been in the investment industry since he joined Putnam in 1989.

In addition to Paul, your fund is managed by Thalia Meehan, CFA.

IN THE NEWS

Today’s bull market, which rose from the ashes of the Great Recession more than seven years ago, recently marked a major milestone. Although the market’s path has at times been volatile, the general upswing in U.S. stocks officially became the second-longest-running bull market in history on the final trading day of April 2016. A bull market is typically defined as a rally of 20% or more off a recent market low. From the trough of the market on March 9, 2009, through April 29, 2016, the S&P 500 Index rose 255%. At 2,608 days old, this up market for stocks still has a long way to go to catch the longest-running bull market on record, which lasted from 1987 to 2000 — 4,494 days — and delivered a whopping 844% return. Today’s record bull has been fed by low interest rates, positive momentum, and historically high levels of monetary and fiscal support from central banks worldwide.

Managed Municipal Income Trust   9 

 



Your fund’s performance

This section shows your fund’s performance, price, and distribution information for periods ended April 30, 2016, the end of the first half of its current fiscal year. In accordance with regulatory requirements for mutual funds, we also include performance as of the most recent calendar quarter-end. Performance should always be considered in light of a fund’s investment strategy. Data represent past performance. Past performance does not guarantee future results. More recent returns may be less or more than those shown. Investment return, net asset value, and market price will fluctuate, and you may have a gain or a loss when you sell your shares.

Fund performance Total return and comparative index results for periods ended 4/30/16

        Lipper High Yield 
        Municipal Debt 
      Barclays Municipal  Funds (closed-end) 
  NAV  Market price  Bond Index  category average* 

Annual average         
(life of fund) (2/24/89)  6.72%  6.33%  6.17%  5.99% 

10 years  82.64  103.98  62.02  84.64 
Annual average  6.21  7.39  4.94  6.30 

5 years  56.79  54.37  29.90  61.63 
Annual average  9.41  9.07  5.37  10.04 

3 years  19.70  17.88  10.90  18.46 
Annual average  6.18  5.64  3.51  5.80 

1 year  7.30  12.30  5.29  7.73 

6 months  5.18  9.54  3.55  5.31 

 

Performance assumes reinvestment of distributions and does not account for taxes. Index and Lipper results should be compared with fund performance at net asset value. Fund results reflect the use of leverage, while index results are unleveraged and Lipper results reflect varying use of, and methods for, leverage.

* Over the 6-month, 1-year, 3-year, 5-year, 10-year, and life-of-fund periods ended 4/30/16, there were 11, 11, 11, 11, 11, and 6 funds, respectively, in this Lipper category.

Performance includes the deduction of management fees and administrative expenses.

10 

Managed Municipal Income Trust 

 



Fund price and distribution information For the six-month period ended 4/30/16

Distributions — common shares       

Number    6   

Income 1    $0.2178   

Capital gains 2       

Total    $0.2178   

  Series A    Series C 
Distributions — preferred shares  (245 shares)    (1,980 shares) 

Income 1  $227.73    $114.52 

Capital gains 2       

Total  $227.73    $114.52 

Share value — common shares  NAV    Market price 

10/31/15  $7.97    $7.30 

4/30/16  8.16    7.77 

Current dividend rate (end of period)  NAV    Market price 

Current dividend rate 3  5.34%    5.61% 

Taxable equivalent 4  9.43    9.91 

 

The classification of distributions, if any, is an estimate. Final distribution information will appear on your year-end tax forms.

1 For some investors, investment income may be subject to the federal alternative minimum tax. Income from federally exempt funds may be subject to state and local taxes.

2 Capital gains, if any, are taxable for federal and, in most cases, state purposes.

3 Most recent distribution, including any return of capital and excluding capital gains, annualized and divided by NAV or market price at end of period.

4 Assumes maximum 43.40% federal tax rate for 2016. Results for investors subject to lower tax rates would not be as advantageous.

Fund performance as of most recent calendar quarter
Total return for periods ended 3/31/16

  NAV  Market price 

Annual average     
(life of fund) (2/24/89)  6.71%  6.27% 

10 years  81.25  96.22 
Annual average  6.13  6.97 

5 years  57.67  51.79 
Annual average  9.53  8.70 

3 years  19.75  17.12 
Annual average  6.19  5.41 

1 year  6.12  9.86 

6 months  5.21  10.15 

 

See the discussion following the fund performance table on page 10 for information about the calculation of fund performance.

 

Managed Municipal Income Trust   11 

 



Terms and definitions

Important terms

Total return shows how the value of the fund’s shares changed over time, assuming you held the shares through the entire period and reinvested all distributions in the fund.

Net asset value (NAV) is the value of all your fund’s assets, minus any liabilities, divided by the number of outstanding shares.

Market price is the current trading price of one share of the fund. Market prices are set by transactions between buyers and sellers on exchanges such as the New York Stock Exchange.

Fixed-income terms

Current rate is the annual rate of return earned from dividends or interest of an investment. Current rate is expressed as a percentage of the price of a security, fund share, or principal investment.

Yield curve is a graph that plots the yields of bonds with equal credit quality against their differing maturity dates, ranging from shortest to longest. It is used as a benchmark for other debt, such as mortgage or bank lending rates.

Comparative indexes

Barclays Municipal Bond Index is an unmanaged index of long-term fixed-rate investment-grade tax-exempt bonds.

Barclays U.S. Aggregate Bond Index is an unmanaged index of U.S. investment-grade fixed-income securities.

BofA Merrill Lynch U.S. 3-Month Treasury Bill Index is an unmanaged index that seeks to measure the performance of U.S. Treasury bills available in the marketplace.

S&P 500 Index is an unmanaged index of common stock performance.

Indexes assume reinvestment of all distributions and do not account for fees. Securities and performance of a fund and an index will differ. You cannot invest directly in an index.

Lipper is a third-party industry-ranking entity that ranks mutual funds. Its rankings do not reflect sales charges. Lipper rankings are based on total return at net asset value relative to other funds that have similar current investment styles or objectives as determined by Lipper. Lipper may change a fund’s category assignment at its discretion. Lipper category averages reflect performance trends for funds within a category.

12  Managed Municipal Income Trust 

 



Other information for shareholders

Important notice regarding share repurchase program

In September 2015, the Trustees of your fund approved the renewal of a share repurchase program that had been in effect since 2005. This renewal allows your fund to repurchase, in the 12 months beginning October 8, 2015, up to 10% of the fund’s common shares outstanding as of October 7, 2015.

Important notice regarding delivery of shareholder documents

In accordance with Securities and Exchange Commission (SEC) regulations, Putnam sends a single copy of annual and semiannual shareholder reports, prospectuses, and proxy statements to Putnam shareholders who share the same address, unless a shareholder requests otherwise. If you prefer to receive your own copy of these documents, please call Putnam at 1-800-225-1581, and Putnam will begin sending individual copies within 30 days.

Proxy voting

Putnam is committed to managing our mutual funds in the best interests of our shareholders. The Putnam funds’ proxy voting guidelines and procedures, as well as information regarding how your fund voted proxies relating to portfolio securities during the 12-month period ended June 30, 2015, are available in the Individual Investors section of putnam.com, and on the SEC’s website, www.sec.gov. If you have questions about finding forms on the SEC’s website, you may call the SEC at 1-800-SEC-0330. You may also obtain the Putnam funds’ proxy voting guidelines and procedures at no charge by calling Putnam’s Shareholder Services at 1-800-225-1581.

Fund portfolio holdings

The fund will file a complete schedule of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Shareholders may obtain the fund’s Form N-Q on the SEC’s website at www.sec.gov. In addition, the fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. You may call the SEC at 1-800-SEC-0330 for information about the SEC’s website or the operation of the Public Reference Room.

Trustee and employee fund ownership

Putnam employees and members of the Board of Trustees place their faith, confidence, and, most importantly, investment dollars in Putnam mutual funds. As of April 30, 2016, Putnam employees had approximately $484,000,000 and the Trustees had approximately $128,000,000 invested in Putnam mutual funds. These amounts include investments by the Trustees’ and employees’ immediate family members as well as investments through retirement and deferred compensation plans.

Managed Municipal Income Trust  13 

 



Summary of Putnam Closed-End Funds’ Amended and Restated Dividend Reinvestment Plans

Putnam High Income Securities Fund, Putnam Managed Municipal Income Trust, Putnam Master Intermediate Income Trust, Putnam Municipal Opportunities Trust and Putnam Premier Income Trust (each, a “Fund” and collectively, the “Funds”) each offer a dividend reinvestment plan (each, a “Plan” and collectively, the “Plans”). If you participate in a Plan, all income dividends and capital gain distributions are automatically reinvested in Fund shares by the Fund’s agent, Putnam Investor Services, Inc. (the “Agent”). If you are not participating in a Plan, every month you will receive all dividends and other distributions in cash, paid by check and mailed directly to you.

Upon a purchase (or, where applicable, upon registration of transfer on the shareholder records of a Fund) of shares of a Fund by a registered shareholder, each such shareholder will be deemed to have elected to participate in that Fund’s Plan. Each such shareholder will have all distributions by a Fund automatically reinvested in additional shares, unless such shareholder elects to terminate participation in a Plan by instructing the Agent to pay future distributions in cash. Shareholders who were not participants in a Plan as of January 31, 2010, will continue to receive distributions in cash but may enroll in a Plan at any time by contacting the Agent.

If you participate in a Fund’s Plan, the Agent will automatically reinvest subsequent distributions, and the Agent will send you a confirmation in the mail telling you how many additional shares were issued to your account.

To change your enrollment status or to request additional information about the Plans, you may contact the Agent either in writing, at P.O. Box 8383, Boston, MA 02266-8383, or by telephone at 1-800-225-1581 during normal East Coast business hours.

How you acquire additional shares through a Plan If the market price per share for your Fund’s shares (plus estimated brokerage commissions) is greater than or equal to their net asset value per share on the payment date for a distribution, you will be issued shares of the Fund at a value equal to the higher of the net asset value per share on that date or 95% of the market price per share on that date.

If the market price per share for your Fund’s shares (plus estimated brokerage commissions) is less than their net asset value per share on the payment date for a distribution, the Agent will buy Fund shares for participating accounts in the open market. The Agent will aggregate open-market purchases on behalf of all participants, and the average price (including brokerage commissions) of all shares purchased by the Agent will be the price per share allocable to each participant. The Agent will generally complete these open-market purchases within five business days following the payment date. If, before the Agent has completed open-market purchases, the market price per share (plus estimated brokerage commissions) rises to exceed the net asset value per share on the payment date, then the purchase price may exceed the net asset value per share, potentially resulting in the acquisition of fewer shares than if the distribution had been paid in newly issued shares.

How to withdraw from a Plan Participants may withdraw from a Fund’s Plan at any time by notifying the Agent, either in writing or by telephone. Such withdrawal will be effective immediately if notice is received by the Agent with sufficient time prior to any distribution record date; otherwise, such withdrawal will be effective with respect to any subsequent

14  Managed Municipal Income Trust 

 



distribution following notice of withdrawal. There is no penalty for withdrawing from or not participating in a Plan.

Plan administration The Agent will credit all shares acquired for a participant under a Plan to the account in which the participant’s common shares are held. Each participant will be sent reasonably promptly a confirmation by the Agent of each acquisition made for his or her account.

About brokerage fees Each participant pays a proportionate share of any brokerage commissions incurred if the Agent purchases additional shares on the open market, in accordance with the Plans. There are no brokerage charges applied to shares issued directly by the Funds under the Plans.

About taxes and Plan amendments Reinvesting dividend and capital gain distributions in shares of the Funds does not relieve you of tax obligations, which are the same as if you had received cash distributions. The Agent supplies tax information to you and to the IRS annually. Each Fund reserves the right to amend or terminate its Plan upon 30 days’ written notice. However, the Agent may assign its rights, and delegate its duties, to a successor agent with the prior consent of a Fund and without prior notice to Plan participants.

If your shares are held in a broker or nominee name If your shares are held in the name of a broker or nominee offering a dividend reinvestment service, consult your broker or nominee to ensure that an appropriate election is made on your behalf. If the broker or nominee holding your shares does not provide a reinvestment service, you may need to register your shares in your own name in order to participate in a Plan.

In the case of record shareholders such as banks, brokers or nominees that hold shares for others who are the beneficial owners of such shares, the Agent will administer the Plan on the basis of the number of shares certified by the record shareholder as representing the total amount registered in such shareholder’s name and held for the account of beneficial owners who are to participate in the Plan.

Managed Municipal Income Trust  15 

 



Financial statements

A guide to financial statements

These sections of the report, as well as the accompanying Notes, constitute the fund’s financial statements.

The fund’s portfolio lists all the fund’s investments and their values as of the last day of the reporting period. Holdings are organized by asset type and industry sector, country, or state to show areas of concentration and diversification.

Statement of assets and liabilities shows how the fund’s net assets and share price are determined. All investment and non-investment assets are added together. Any unpaid expenses and other liabilities are subtracted from this total. The result is divided by the number of shares to determine the net asset value per share. (For funds with preferred shares, the amount subtracted from total assets includes the liquidation preference of preferred shares.)

Statement of operations shows the fund’s net investment gain or loss. This is done by first adding up all the fund’s earnings — from dividends and interest income — and subtracting its operating expenses to determine net investment income (or loss). Then, any net gain or loss the fund realized on the sales of its holdings — as well as any unrealized gains or losses over the period — is added to or subtracted from the net investment result to determine the fund’s net gain or loss for the fiscal period.

Statement of changes in net assets shows how the fund’s net assets were affected by the fund’s net investment gain or loss, by distributions to shareholders, and by changes in the number of the fund’s shares. It lists distributions and their sources (net investment income or realized capital gains) over the current reporting period and the most recent fiscal year-end. The distributions listed here may not match the sources listed in the Statement of operations because the distributions are determined on a tax basis and may be paid in a different period from the one in which they were earned. Dividend sources are estimated at the time of declaration. Actual results may vary. Any non-taxable return of capital cannot be determined until final tax calculations are completed after the end of the fund’s fiscal year.

Financial highlights provide an overview of the fund’s investment results, per-share distributions, expense ratios, net investment income ratios, and portfolio turnover in one summary table, reflecting the five most recent reporting periods. In a semiannual report, the highlights table also includes the current reporting period.

16  Managed Municipal Income Trust 

 



The fund’s portfolio 4/30/16 (Unaudited)

Key to holding’s abbreviations

ABAG Association Of Bay Area Governments  G.O. Bonds General Obligation Bonds 
AGM Assured Guaranty Municipal Corporation  GNMA Coll. Government National Mortgage 
AMBAC AMBAC Indemnity Corporation  Association Collateralized 
COP Certificates of Participation  NATL National Public Finance Guarantee Corp. 
FGIC Financial Guaranty Insurance Company  SGI Syncora Guarantee, Inc. 
FHLMC Coll. Federal Home Loan Mortgage  U.S. Govt. Coll. U.S. Government Collateralized 
Corporation Collateralized  VRDN Variable Rate Demand Notes, which are 
FNMA Coll. Federal National Mortgage  floating-rate securities with long-term maturities 
Association Collateralized  that carry coupons that reset and are payable upon 
FRB Floating Rate Bonds: the rate shown  demand either daily, weekly or monthly. The rate 
is the current interest rate at the close of the  shown is the current interest rate at the close of the 
reporting period  reporting period. 

 

MUNICIPAL BONDS AND NOTES (129.1%)*  Rating**  Principal amount  Value 

 
Alabama (1.8%)       
Cullman Cnty., Hlth. Care Auth. Rev. Bonds       
(Cullman Regl. Med. Ctr.), Ser. A, 6 3/4s, 2/1/29  Ba1  $1,100,000  $1,200,133 

Jefferson Cnty., Swr. Rev. Bonds       
Ser. D, 6 1/2s, 10/1/53  BBB–  500,000  604,255 
zero %, 10/1/46  BBB–  3,950,000  2,931,295 

Lower AL Gas Dist. Rev. Bonds (Gas Project),       
Ser. A, 5s, 9/1/46  A3  1,450,000  1,847,982 

Selma, Indl. Dev. Board Rev. Bonds       
(Gulf Opportunity Zone Intl. Paper Co.),       
Ser. A, 6 1/4s, 11/1/33  BBB  1,000,000  1,163,220 

  7,746,885 
American Samoa (0.1%)     
Econ. Dev. Auth. Rev. Bonds, Ser. A,       
6 5/8s, 9/1/35  Ba3  500,000  518,580 

  518,580 
Arizona (5.1%)     
Casa Grande, Indl. Dev. Auth. Rev. Bonds       
(Casa Grande Regl. Med. Ctr.)       
Ser. A, 7 5/8s, 12/1/29 (escrow) F   D/P  1,800,000  5,380 
7 1/4s, 12/1/19 (escrow) F   D/P  1,000,000  2,989 

Coconino Cnty., Poll. Control Rev. Bonds (Tucson       
Elec. Pwr. Co. — Navajo), Ser. A, 5 1/8s, 10/1/32  A3  2,000,000  2,199,340 

Maricopa Cnty., Poll. Control Rev. Bonds (El Paso       
Elec. Co.), Ser. A, 7 1/4s, 2/1/40  Baa1  2,200,000  2,535,258 

Navajo Cnty., Poll. Control Corp. Mandatory Put       
Bonds (6/1/16) (AZ Pub. Svc. Co. Cholla Pwr.       
Plant), Ser. E, 5 3/4s, 6/1/34  A2  1,950,000  1,957,410 

Phoenix, Indl. Dev. Auth. Ed. Rev. Bonds       
(Great Hearts Academies), 6s, 7/1/32  BB/F  200,000  219,148 
(Choice Academies, Inc.), 5 5/8s, 9/1/42  BB+  315,000  330,586 
(Choice Academies, Inc.), 5 3/8s, 9/1/32  BB+  675,000  713,239 
(Great Hearts Academies), 5s, 7/1/44  BBB–  1,700,000  1,844,347 
(BASIS School, Inc.), 5s, 7/1/35  BB  900,000  966,258 
(Choice Academies, Inc.), 4 7/8s, 9/1/22  BB+  905,000  983,038 

 

Managed Municipal Income Trust  17 

 



MUNICIPAL BONDS AND NOTES (129.1%)* cont.  Rating**  Principal amount  Value 

 
Arizona cont.       
Phoenix, Indl. Dev. Auth. Ed. 144A Rev. Bonds       
(BASIS Schools, Inc.), Ser. A       
5s, 7/1/46  BB  $250,000  $263,505 
5s, 7/1/35  BB  600,000  644,172 

Pima Cnty., Indl. Dev. Auth. Rev. Bonds       
(Horizon Cmnty. Learning Ctr.), 5.05s, 6/1/25  BBB–  1,140,000  1,143,865 

Salt Verde, Fin. Corp. Gas Rev. Bonds       
5 1/2s, 12/1/29  Baa1  2,000,000  2,564,460 
5s, 12/1/37  Baa1  2,000,000  2,496,920 
5s, 12/1/32  Baa1  570,000  703,665 

Tempe, Indl. Dev. Auth. Rev. Bonds       
(Friendship Village), Ser. A, 6 1/4s, 12/1/42  BB–/P  1,000,000  1,081,820 

Yavapai Cnty., Indl. Dev. Ed. Auth. Rev. Bonds       
(Agribusiness & Equine Ctr.), 5s, 3/1/32  BB+  1,000,000  1,033,310 

Yavapai Cnty., Indl. Dev. Ed. Auth. 144A Rev.       
Bonds, Ser. A, 5s, 9/1/34  BB+  500,000  515,440 

  22,204,150 
Arkansas (0.2%)     
Arkadelphia, Pub. Ed. Fac. Board Rev. Bonds       
(Ouachita Baptist U.), 6s, 3/1/33  BB+/P  840,000  889,619 

  889,619 
California (14.1%)     
ABAG Fin. Auth. for Nonprofit Corps. Rev. Bonds       
(Episcopal Sr. Cmntys.), 6s, 7/1/31  BBB+/F  660,000  766,953 
(O’Connor Woods), 5s, 1/1/33  AA–  600,000  708,288 

CA Muni. Fin. Auth. COP       
(Cmnty. Hosp. Central CA)       
5 1/4s, 2/1/37  A–  650,000  666,822 
U.S. Govt. Coll., 5 1/4s, 2/1/37       
(Prerefunded 2/1/17)  AAA/P  455,000  470,525 

CA Muni. Fin. Auth. Rev. Bonds       
(U. of La Verne), Ser. A, 6 1/8s, 6/1/30  Baa1  1,000,000  1,162,340 
(Emerson College), 6s, 1/1/42  Baa1  1,000,000  1,194,140 
(Cmnty. Med. Ctrs.), Ser. A, 5s, 2/1/40  A–  750,000  849,143 

CA School Fin. Auth. Rev. Bonds       
(2023 Union, LLC), Ser. A, 6s, 7/1/33  BBB  465,000  524,832 

CA State G.O. Bonds       
6 1/2s, 4/1/33  Aa3  5,000,000  5,819,200 
5s, 4/1/42  Aa3  2,000,000  2,325,480 

CA State Muni. Fin. Auth. Charter School       
Rev. Bonds (Partnerships Uplift Cmnty.),       
Ser. A, 5s, 8/1/32  BB+  665,000  711,224 

CA State Poll. Control Fin. Auth. Rev. Bonds       
(Wtr. Furnishing), 5s, 11/21/45  Baa3  2,000,000  2,202,040 
(Pacific Gas & Electric Corp.), Class D, FGIC,       
4 3/4s, 12/1/23  A3  2,500,000  2,604,375 

CA State Poll. Control Fin. Auth. Solid Waste Disp.       
144A Mandatory Put Bonds (5/2/16)       
(Republic Svcs., Inc.), Ser. A, 0.9s, 8/1/23  A–2  2,400,000  2,400,000 

 

18  Managed Municipal Income Trust 

 



MUNICIPAL BONDS AND NOTES (129.1%)* cont.  Rating**  Principal amount  Value 

 
California cont.       
CA State Pub. Wks. Board Rev. Bonds       
(Dept. of Forestry & Fire), Ser. E, 5s, 11/1/32  A1  $1,250,000  $1,318,675 
(Capital Projects), Ser. A, 5s, 4/1/29  A1  2,000,000  2,373,200 

CA Statewide Cmnty. Dev. Auth. COP       
(The Internext Group), 5 3/8s, 4/1/30  BBB+  540,000  541,588 

CA Statewide Cmnty. Dev. Auth. Rev. Bonds       
(Terraces at San Joaquin Gardens), Ser. A,       
6s, 10/1/47  BB/P  1,345,000  1,444,570 
(American Baptist Homes West),       
5 3/4s, 10/1/25  BBB+/F  3,000,000  3,419,370 
(U. CA Irvine E. Campus Apts. Phase 1),       
5 3/8s, 5/15/38  Baa1  1,000,000  1,151,950 
(899 Charleston, LLC), Ser. A, 5 1/4s, 11/1/44  BB/P  450,000  463,037 
(U. CA Irvine E. Campus Apts. Phase 1),       
5 1/8s, 5/15/31  Baa1  2,250,000  2,621,205 

Corona-Norco, School Dist. Pub. Fin. Auth. Special       
Tax Bonds (Sr. Lien), Ser. A, 5s, 9/1/28  A–  380,000  433,652 

Foothill/Eastern Corridor Agcy. Rev. Bonds,       
Ser. A, 6s, 1/15/53  BBB–  1,500,000  1,783,335 

Golden State Tobacco Securitization       
Corp. Rev. Bonds       
Ser. A-2, 5.3s, 6/1/37  B3  1,000,000  1,004,590 
Ser. A-1, 5 1/8s, 6/1/47  B3  3,235,000  3,178,096 

Univ. of CA Rev. Bonds, Ser. AF, 5s, 5/15/36 T   AA  7,000,000  8,297,756 

La Verne, COP (Brethren Hillcrest Homes),       
5s, 5/15/36  BBB–/F  325,000  351,166 

Los Angeles, Dept. of Arpt. Rev. Bonds       
(Los Angeles Intl. Arpt.), 5s, 5/15/30  AA  1,000,000  1,173,630 

Los Angeles, Regl. Arpt. Impt. Corp. Lease Rev.       
Bonds (Laxfuel Corp.), 4 1/2s, 1/1/27  A  400,000  436,876 

M-S-R Energy Auth. Rev. Bonds, Ser. A,       
6 1/2s, 11/1/39  BBB+  750,000  1,085,243 

Oakland, Alameda Cnty. Unified School       
Dist. G.O. Bonds       
(Election of 2012), 6 5/8s, 8/1/38  BBB/P  800,000  960,264 
(Election of 2006), Ser. A, 5 1/2s, 8/1/32  BBB/P  500,000  586,485 

Poway, Unified School Dist. Pub. Fin. Auth. Special       
Tax Bonds, 5s, 9/15/32  BBB  495,000  573,418 

Rancho Cordova, Cmnty. Fac. Dist. Special Tax       
Bonds (Sunridge Anatolia), Ser. 03-1, 5s, 9/1/37  BBB–/P  350,000  385,378 

San Francisco City & Cnty. Arpt. Comm. Intl. Arpt.       
Rev. Bonds, Ser. A, 5s, 5/1/30  A1  600,000  686,940 

San Francisco City & Cnty., Redev. Agcy. Cmnty.       
Successor Special Tax Bonds       
(No. 6 Mission Bay Pub. Impts.), Ser. C,       
zero %, 8/1/43  BBB/P  2,000,000  453,380 
(No. 6 Mission Bay Pub. Impts.), Ser. C,       
zero %, 8/1/38  BBB/P  2,000,000  613,080 

San Francisco, City & Cnty. Redev. Fin. Auth. Tax       
Alloc. Bonds (Mission Bay South Redev.), Ser. D,       
6 5/8s, 8/1/39 (Prerefunded 8/1/19)  BBB+  250,000  295,708 

 

Managed Municipal Income Trust  19 

 



MUNICIPAL BONDS AND NOTES (129.1%)* cont.  Rating**  Principal amount  Value 

 
California cont.       
San Joaquin Hills, Trans. Corridor Agcy. Toll Road       
Rev. Bonds, Ser. A, 5s, 1/15/34  BBB–  $920,000  $1,033,666 

Santaluz, Cmnty. Fac. Dist. No. 2 Special Tax       
Bonds (Impt. Area No. 1), Ser. A, 5 1/4s, 9/1/26       
(Prerefunded 9/1/21)  BBB+  1,620,000  1,838,182 

Sunnyvale, Special Tax Bonds (Cmnty. Fac. Dist.       
No. 1), 7 3/4s, 8/1/32  B+/P  835,000  837,430 

Yucaipa Special Tax Bonds (Cmnty. Fac. Dist.       
No. 98-1 Chapman Heights), 5 3/8s, 9/1/30  BBB+  375,000  417,341 

  62,164,573 
Colorado (3.6%)     
Central Platte Valley, Metro. Dist. G.O. Bonds,       
5s, 12/1/43  BB+  400,000  424,028 

CO Pub. Hwy. Auth. Rev. Bonds (E-470), Ser. C,       
5 3/8s, 9/1/26  Baa1  500,000  561,180 

CO State Educ. & Cultural Fac. Auth. Rev. Bonds       
(Skyview Academy), 5 1/8s, 7/1/34  BB+  755,000  814,132 

CO State Hlth. Fac. Auth. Rev. Bonds       
(Christian Living Cmnty.), 6 3/8s, 1/1/41  BB–/P  810,000  865,882 
(Total Longterm Care National), Ser. A, 6 1/4s,       
11/15/40 (Prerefunded 11/15/20)  AAA/P  300,000  369,144 
(Christian Living Cmntys.), Ser. A,       
5 3/4s, 1/1/26  BB–/P  1,925,000  1,947,426 
(Evangelical Lutheran Good Samaritan Society       
Oblig. Group (The)), 5 5/8s, 6/1/43  Baa1  250,000  291,200 
(Valley View Assn.), 5 1/4s, 5/15/42  A–  3,495,000  3,618,629 
(Evangelical Lutheran Good Samaritan Society       
Oblig. Group (The)), Ser. A, 5s, 6/1/45  Baa1  1,500,000  1,657,635 
(Covenant Retirement Cmnty.), Ser. A,       
5s, 12/1/33  BBB+/F  900,000  981,414 
(Evangelical Lutheran Good Samaritan Society       
Oblig. Group (The)), 5s, 12/1/33  Baa1  1,100,000  1,223,266 

Eaton, Area Park & Recreation Dist. G.O. Bonds,       
5 1/4s, 12/1/34  BB/P  220,000  233,145 

Park Creek Metro. Dist. Tax Allocation Bonds       
(Sr. Ltd. Property Tax Supported), Ser. A,       
5s, 12/1/45  BBB/F  225,000  249,739 

Plaza, Tax Alloc. Bonds (Metro. Dist. No. 1),       
5s, 12/1/40  BB/P  1,650,000  1,731,873 

Regl. Trans. Dist. Rev. Bonds (Denver Trans.       
Partners), 6s, 1/15/41  Baa3  750,000  861,368 

  15,830,061 
Delaware (0.8%)     
DE State Econ. Dev. Auth. Rev. Bonds       
(Delmarva Pwr.), 5.4s, 2/1/31  Baa1  500,000  555,650 
(Indian River Pwr.), 5 3/8s, 10/1/45  Baa3  2,600,000  2,747,368 

  3,303,018 
District of Columbia (1.7%)     
DC Rev. Bonds       
(Howard U.), Ser. A, 6 1/2s, 10/1/41  BBB  400,000  428,680 
(Howard U.), Ser. A, 6 1/4s, 10/1/32  BBB  1,000,000  1,079,450 
(Kipp Charter School), 6s, 7/1/33  BBB+  1,000,000  1,167,370 

 

20  Managed Municipal Income Trust 

 



MUNICIPAL BONDS AND NOTES (129.1%)* cont.  Rating**  Principal amount  Value 

 
District of Columbia cont.       
DC Tobacco Settlement Fin. Corp. Rev. Bonds,       
Ser. A, zero %, 6/15/46  CCC/F  $7,500,000  $995,400 

DC, Rev. Bonds (Methodist Home of The DC       
(The)), Ser. A, 5 1/4s, 1/1/39  BB–/P  250,000  253,805 

Metro. Washington, Arpt. Auth. Dulles Toll Rd.       
Rev. Bonds, Ser. B, zero %, 10/1/40  Baa1  10,000,000  3,758,100 

  7,682,805 
Florida (6.0%)     
Broward Cnty., Arpt. Syst. Rev. Bonds, Ser. A,       
5s, 10/1/45  A1  2,000,000  2,281,700 

Double Branch Cmnty. Dev. Dist. Special Assmt.       
Bonds (Sr. Lien), Ser. A-1, 4 1/8s, 5/1/31  A–  500,000  512,985 

Fishhawk, CCD IV Special Assmt. Bonds,       
7 1/4s, 5/1/43  B/P  400,000  438,296 

Florida State Higher Edl. Fac. Rev. Bonds       
(U. of Tampa), Ser. A, 5s, 4/1/32  BBB+  600,000  691,512 

Greater Orlando Aviation Auth. Rev. Bonds       
(JetBlue Airways Corp.), 5s, 11/15/36  B/P  1,000,000  1,058,860 

Halifax Hosp. Med. Ctr. Rev. Bonds, 5s, 6/1/36  A–  1,300,000  1,503,775 

Jacksonville, Econ. Dev. Comm. Hlth. Care       
Fac. Rev. Bonds (FL Proton Therapy Inst.),       
Ser. A, 6s, 9/1/17  BB–/P  260,000  268,889 

Jacksonville, Econ. Dev. Comm. Indl. Dev. Rev.       
Bonds (Gerdau Ameristeel US, Inc.), 5.3s, 5/1/37  BBB–  1,350,000  1,276,479 

Lakeland, Hosp. Syst. Rev. Bonds (Lakeland Regl.       
Hlth.), 5s, 11/15/40  A2  500,000  568,320 

Lakeland, Retirement Cmnty. 144A Rev. Bonds       
(1st Mtge. — Carpenters), 6 3/8s, 1/1/43  BBB–/F  840,000  884,268 

Lakewood Ranch, Stewardship Dist. Special       
Assessment Bonds (Village of Lakewood Ranch       
South), 5 1/8s, 5/1/46  B+/P  1,000,000  1,032,770 

Lakewood Ranch, Stewardship Dist. Special       
Assmt. Bonds, 4 7/8s, 5/1/35  BB–/P  500,000  520,495 

Lee Cnty., Indl. Dev. Auth. Hlth. Care Fac. Rev.       
Bonds (Shell Pt./Alliance Oblig. Group)       
5 1/8s, 11/15/36  BBB  1,075,000  1,093,490 
5s, 11/15/22  BBB  1,500,000  1,553,010 

Martin Cnty., Rev. Bonds (Indiantown       
Cogeneration), 4.2s, 12/15/25  Ba1  500,000  510,975 

Miami Beach, Hlth. Fac. Auth. Hosp. Rev. Bonds       
(Mount Sinai Med. Ctr.), 5s, 11/15/29  Baa1  1,000,000  1,133,010 

Miami-Dade Cnty., Indl. Dev. Auth. Rev. Bonds       
(Pinecrest Academy, Inc.), 5s, 9/15/34  BBB–  1,240,000  1,323,712 

Midtown Miami Cmnty. Dev. Dist. Special Assmt.       
Bonds (Garage), Ser. A, 5s, 5/1/29  BB–/P  570,000  612,015 

Palm Beach Cnty., Hlth. Fac. Auth. Rev. Bonds       
(Acts Retirement-Life Cmnty.), 5 1/2s, 11/15/33  BBB+  2,000,000  2,252,740 

Palm Coast Pk. Cmnty. Dev. Dist. Special Assmt.       
Bonds, 5.7s, 5/1/37  B–/P  245,000  211,678 

South Lake Hosp. Dist. Rev. Bonds       
(South Lake Hosp.), Ser. A, 6s, 4/1/29  Baa1  1,000,000  1,113,950 

 

Managed Municipal Income Trust  21 

 



MUNICIPAL BONDS AND NOTES (129.1%)* cont.  Rating**  Principal amount  Value 

 
Florida cont.       
Southeast Overtown Park West Cmnty. Redev.       
Agcy. 144A Tax Alloc. Bonds, Ser. A-1, 5s, 3/1/30  BBB+  $480,000  $540,077 

Tallahassee, Hlth. Fac. Rev. Bonds (Tallahassee       
Memorial HealthCare, Inc.), Ser. A, 5s, 12/1/55  Baa1  1,000,000  1,121,980 

Tolomato, Cmnty. Dev. Dist. Special Assmt.       
Bonds, 5.4s, 5/1/37  B+/P  745,000  745,998 

Verandah, West Cmnty. Dev. Dist. Special Assmt.       
Bonds (Cap. Impt.), 5s, 5/1/33  B+/P  470,000  489,110 

Verano Ctr. Cmnty. Dev. Dist. Special Assmt.       
Bonds (Cmnty. Infrastructure), Ser. A,       
5 3/8s, 5/1/37  B/P  845,000  845,406 

Village Cmnty. Dev. Dist. No. 10 Special Assmt.       
Bonds, 5 3/4s, 5/1/31  BB/P  790,000  934,301 

Village Cmnty. Dev. Dist. No. 8 Special Assmt.       
Bonds (Phase II), 6 1/8s, 5/1/39  BBB–/P  400,000  459,352 

Village Cmnty. Dev. Dist. No. 9 Special Assmt.       
Bonds, 5s, 5/1/22  BBB–/P  385,000  407,334 

  26,386,487 
Georgia (3.7%)     
Atlanta, Wtr. & Waste Wtr. Rev. Bonds, Ser. A,       
6 1/4s, 11/1/39 (Prerefunded 11/1/19)  Aa3  2,500,000  2,955,900 

Clayton Cnty., Dev. Auth. Special Fac. Rev. Bonds       
(Delta Airlines), Ser. A, 8 3/4s, 6/1/29  Baa3  3,000,000  3,712,860 

Cobb Cnty., Dev. Auth. Student Hsg. Rev. Bonds       
(Kennesaw State U. Real Estate Oblig. Group),       
Ser. C, 5s, 7/15/38  Baa2  750,000  819,878 

Forsyth Cnty., Hosp. Auth. Rev. Bonds       
(Baptist Hlth. Care Syst.), U.S. Govt. Coll., 6 1/4s,       
10/1/18 (Escrowed to maturity)  AA+  730,000  780,845 

GA State Private College & U. Auth. Rev. Bonds       
(Mercer U.)       
Ser. C, 5 1/4s, 10/1/30  Baa2  750,000  873,825 
Ser. A, 5 1/4s, 10/1/27  Baa2  1,000,000  1,168,590 
Ser. A, 5s, 10/1/32  Baa2  1,000,000  1,137,100 

Gainesville & Hall Cnty., Devauth Retirement       
Cmnty. Rev. Bonds (Acts Retirement-Life Cmnty.),       
Ser. A-2, 6 3/8s, 11/15/29  BBB+  700,000  809,585 

Marietta, Dev. Auth. Rev. Bonds (Fac. of Life U.,       
Inc.), Ser. PJ, 6 1/4s, 6/15/20  Ba3  815,000  862,808 

Muni. Election Auth. of GA Rev. Bonds       
(Plant Voltage Units 3 & 4), Ser. A, 5 1/2s, 7/1/60  A+  2,000,000  2,376,560 

Rockdale Cnty., Dev. Auth. Rev. Bonds       
(Visy Paper), Ser. A, 6 1/8s, 1/1/34  BB/P  600,000  611,388 

  16,109,339 
Guam (0.1%)     
Territory of GU, Pwr. Auth. Rev. Bonds, Ser. A,       
5s, 10/1/34  Baa2  200,000  224,956 

      224,956 

 

22  Managed Municipal Income Trust 

 



MUNICIPAL BONDS AND NOTES (129.1%)* cont.  Rating**  Principal amount  Value 

 
Hawaii (1.0%)       
HI State Dept. Budget & Fin. Rev. Bonds       
(Craigside), Ser. A, 9s, 11/15/44  B/P  $400,000  $491,904 
(Hawaiian Elec. Co. — Subsidiary),       
6 1/2s, 7/1/39  Baa1  3,000,000  3,422,970 
(Kahala Nui), 5 1/8s, 11/15/32  BBB/F  400,000  436,188 

  4,351,062 
Illinois (6.2%)     
Chicago, G.O. Bonds       
Ser. B-2, 5 1/2s, 1/1/37  BBB+  2,000,000  2,002,560 
Ser. C, 5s, 1/1/38  BBB+  1,500,000  1,438,605 

Chicago, Special Assmt. Bonds (Lake Shore East),       
6 3/4s, 12/1/32  BB/P  1,610,000  1,613,140 

Chicago, Board of Ed. G.O. Bonds, Ser. C,       
5 1/4s, 12/1/39  B+  1,500,000  1,257,915 

Chicago, Motor Fuel Tax Rev. Bonds, 5s, 1/1/29  BBB+  500,000  524,600 

Chicago, O’Hare Intl. Arpt. Rev. Bonds,       
Ser. C, 5s, 1/1/26  A2  2,595,000  3,033,918 

Chicago, Transit Auth. Rev. Bonds (Federal Transit       
Administration Section 5307), 5s, 6/1/18  A  1,050,000  1,124,120 

Chicago, Waste Wtr. Transmission Rev. Bonds       
(2nd Lien), 5s, 1/1/39  A  1,360,000  1,461,878 

Chicago, Wtr. Wks Rev. Bonds, 5s, 11/1/39  A  875,000  947,293 

Cicero, G.O. Bonds, Ser. A, AGM, 5s, 1/1/20  AA  1,250,000  1,383,488 

Du Page Cnty., Special Svc. Area No. 31 Special       
Tax Bonds (Monarch Landing), 5 5/8s, 3/1/36  B/P  350,000  351,019 

IL Fin. Auth. Rev. Bonds       
(Provena Hlth.), Ser. A, 7 3/4s, 8/15/34  Baa2  1,500,000  1,768,815 
(Silver Cross Hosp. & Med. Ctr.), 7s, 8/15/44       
(Prerefunded 8/15/19)  AAA/P  2,000,000  2,390,600 
(Rush U. Med. Ctr.), Ser. C, U.S. Govt. Coll.,       
6 5/8s, 11/1/39 (Prerefunded 5/1/19)  Aaa  1,075,000  1,259,051 
(Navistar Intl. Recvy. Zone), 6 1/2s, 10/15/40  Caa1  1,000,000  1,002,320 
(Three Crowns Pk. Plaza), Ser. A,       
5 7/8s, 2/15/26  BB–/P  1,000,000  1,001,410 
(American Wtr. Cap. Corp.), 5 1/4s, 10/1/39  A  1,575,000  1,695,314 

IL State G.O. Bonds, 5s, 3/1/34  A–  750,000  791,775 

IL State Fin. Auth. Rev. Bonds (Plymouth Place),       
5 1/4s, 5/15/45  BB+/F  1,000,000  1,041,570 

Railsplitter, Tobacco Settlement Auth. Rev.       
Bonds, 6s, 6/1/28  A–  1,050,000  1,253,952 

  27,343,343 
Indiana (4.2%)     
IN State Fin. Auth. Rev. Bonds       
(I-69 Dev. Partners, LLC), 5 1/4s, 9/1/40  BB+  1,000,000  1,118,490 
(I-69 Dev. Partners, LLC), 5 1/4s, 9/1/34  BB+  1,250,000  1,423,188 
(OH Valley Elec. Corp.), Ser. A, 5s, 6/1/32  Baa3  750,000  801,750 

IN State Fin. Auth. VRDN, Ser. A-3, 0.31s, 2/1/37  VMIG1  2,260,000  2,260,000 

IN State Fin. Auth. Econ. Dev. Mandatory       
Put Bonds (6/1/16) (Republic Svcs., Inc.),       
0.7s, 12/1/37  A–2  3,000,000  2,999,850 

 

Managed Municipal Income Trust  23 

 



MUNICIPAL BONDS AND NOTES (129.1%)* cont.  Rating**  Principal amount  Value 

 
Indiana cont.       
IN State Fin. Auth. Econ. Dev. Mandatory Put       
Bonds (6/1/16) (Republic Svcs., Inc.), Ser. A,       
0.7s, 5/1/34  A–2  $600,000  $599,952 

IN State Fin. Auth. Edl. Fac. Rev. Bonds       
(Butler U.), Ser. B       
5s, 2/1/32  BBB+  1,000,000  1,109,730 
5s, 2/1/29  BBB+  500,000  561,900 

Indianapolis, Arpt. Auth. Rev. Bonds       
(Federal Express Corp.), 5.1s, 1/15/17  Baa2  3,500,000  3,603,635 

Jasper Cnty., Indl. Poll. Control Rev. Bonds       
AMBAC, 5.7s, 7/1/17  Baa1  1,125,000  1,182,769 
NATL, 5.6s, 11/1/16  AA–  700,000  715,925 
Ser. A, NATL, 5.6s, 11/1/16  AA–  500,000  511,375 

Valparaiso, Exempt Facs. Rev. Bonds       
(Pratt Paper, LLC), 6 3/4s, 1/1/34  B+/P  1,125,000  1,383,986 

  18,272,550 
Iowa (2.1%)     
IA Fin. Auth. Hlth. Care Fac. Rev. Bonds       
(Dev. Care Initiatives), Ser. A       
5 1/4s, 7/1/17  BB+  1,040,000  1,046,011 
5s, 7/1/19  BB+  2,750,000  2,763,283 

IA Fin. Auth. Hlth. Fac. Rev. Bonds       
(Dev. Care Initiatives), Ser. A, 5 1/2s, 7/1/25  BB+  950,000  955,035 

IA State Fin. Auth. Midwestern Disaster Rev.       
Bonds (IA Fertilizer Co., LLC)       
5 1/2s, 12/1/22  BB–  1,000,000  1,048,560 
5 1/4s, 12/1/25  BB–  750,000  810,720 

Orange Cnty., Hosp. Rev. Bonds, 5 1/2s, 9/1/27  BB/P  1,125,000  1,145,475 

Tobacco Settlement Auth. of IA Rev. Bonds,       
Ser. C, 5 3/8s, 6/1/38  B+  1,250,000  1,249,975 

  9,019,059 
Kansas (0.1%)     
Lenexa, Hlth. Care Fac. Rev. Bonds       
(LakeView Village), 7 1/8s, 5/15/29  BB/P  500,000  551,985 

  551,985 
Kentucky (1.9%)     
KY Econ. Dev. Fin. Auth. Rev. Bonds       
(Masonic Home Indpt. Living II)       
7 1/4s, 5/15/41  BB–/P  500,000  589,075 
7s, 5/15/30  BB–/P  500,000  588,395 

KY Pub. Trans. Infrastructure Auth. Rev. Bonds       
(1st Tier Downtown Crossing), Ser. A, 6s, 7/1/53  Baa3  1,100,000  1,288,694 

KY State Econ. Dev. Fin. Auth. Hlth. Care Rev.       
Bonds (Masonic Homes of KY), 5 3/8s, 11/15/42  BB–/P  900,000  918,441 

Louisville & Jefferson Cnty., Metro. Govt. College       
Rev. Bonds (Bellarmine U.), Ser. A, 6s, 5/1/28  Baa3  500,000  535,510 

Louisville & Jefferson Cnty., Metro. Govt. Hlth.       
Syst. Rev. Bonds (Norton Healthcare Oblig.       
Group), 5 1/2s, 10/1/33  A–  3,000,000  3,518,730 

Owen Cnty., Wtr. Wks. Syst. Rev. Bonds       
(American Wtr. Co.), Ser. A, 6 1/4s, 6/1/39  A  700,000  784,497 

      8,223,342 

 

24  Managed Municipal Income Trust 

 



MUNICIPAL BONDS AND NOTES (129.1%)* cont.  Rating**  Principal amount  Value 

 
Louisiana (1.2%)       
LA State Local Govt. Env. Fac. & Cmnty. Dev.       
Auth. Rev. Bonds (Westlake Chemical Corp.),       
6 3/4s, 11/1/32  BBB+  $2,200,000  $2,380,312 

LA State Pub. Fac. Auth. Rev. Bonds       
(Ochsner Clinic Foundation), 5s, 5/15/47  Baa1  250,000  275,158 

LA State Pub. Fac. Solid Waste Disp. Auth. Rev.       
Bonds (LA Pellets, Inc.), Ser. A, 8 3/8s, 7/1/39       
(In default) †  D/P  500,000  300,000 

Pub. Fac. Auth. Dock & Wharf 144A Rev. Bonds       
(Impala Warehousing, LLC), 6 1/2s, 7/1/36  B+/P  1,000,000  1,125,070 

Rapides, Fin. Auth. FRB (Cleco Pwr.), AMBAC,       
4.7s, 11/1/36  A3  750,000  757,830 

St. Tammany, Public Trust Fin. Auth. Rev. Bonds       
(Christwood), 5 1/4s, 11/15/37  BB/P  385,000  394,837 

  5,233,207 
Maine (0.6%)     
ME Hlth. & Higher Edl. Fac. Auth. Rev. Bonds       
(ME Gen. Med. Ctr.), 7 1/2s, 7/1/32  Ba2  1,000,000  1,186,700 
(MaineGeneral Health Oblig. Group),       
6.95s, 7/1/41  Ba2  1,000,000  1,124,310 

ME State Fin. Auth. Solid Waste Disp. 144A       
Mandatory Put Bonds (8/1/25) (Casella       
Waste Syst.), 5 1/8s, 8/1/35  BB–  500,000  541,065 

  2,852,075 
Maryland (1.0%)     
Baltimore Cnty., Rev. Bonds (Oak Crest       
Village, Inc. Fac.), Ser. A, 5s, 1/1/37  A–  2,000,000  2,038,720 

MD Econ. Dev. Corp. Poll. Control Rev. Bonds       
(Potomac Electric Power Co.), 6.2s, 9/1/22  A2  550,000  625,983 

Westminster, Rev. Bonds       
(Lutheran Village at Miller’s Grant, Inc. (The)),       
Ser. A, 6s, 7/1/34  B–/P  250,000  275,893 
(Carroll Lutheran Village, Inc.), 5 1/8s, 7/1/34  BB/P  1,500,000  1,585,365 

  4,525,961 
Massachusetts (6.2%)     
MA State Dev. Fin. Agcy. Rev. Bonds       
(Sabis Intl.), Ser. A, 8s, 4/15/39       
(Prerefunded 10/15/19)  BBB  690,000  854,054 
(Linden Ponds, Inc. Fac.), Ser. A-1,       
6 1/4s, 11/15/46  B–/P  450,850  454,849 
(Linden Ponds, Inc. Fac.), Ser. A-1,       
6 1/4s, 11/15/26  B–/P  275,400  284,169 
(Boston U.), SGI, 6s, 5/15/59  A1  500,000  648,290 
(Loomis Cmntys.), Ser. A, 6s, 1/1/33  BBB–  200,000  225,720 
(Linden Ponds, Inc. Fac.), Ser. A-2,       
5 1/2s, 11/15/46  B–/P  88,265  81,356 
(New England Conservatory       
of Music), U.S. Govt. Coll., 5 1/4s, 7/1/38       
(Prerefunded 7/1/18)  AAA/P  805,000  881,314 
(Wheelock College), Ser. C, 5 1/4s, 10/1/29  BBB  1,700,000  1,759,466 
(First Mtge. — Orchard Cove), 5s, 10/1/19  BB/P  550,000  566,275 
(Linden Ponds, Inc. Fac.), Ser. B,       
zero %, 11/15/56  B–/P  439,022  3,284 

 

Managed Municipal Income Trust  25 

 



MUNICIPAL BONDS AND NOTES (129.1%)* cont.  Rating**  Principal amount  Value 

 
Massachusetts cont.       
MA State Dev. Fin. Agcy. Hlth. Care Fac. 144A Rev.       
Bonds (Adventcare), Ser. A, 6.65s, 10/15/28  B/P  $1,050,000  $1,092,777 

MA State Dev. Fin. Agcy. Solid Waste Disp.       
FRB (Dominion Energy Brayton Point),       
Ser. 1, U.S. Govt. Coll., 5 3/4s, 12/1/42       
(Prerefunded 5/1/19)  Baa2  1,050,000  1,199,310 

MA State Edl. Fin. Auth. Rev. Bonds, Ser. B,       
5 1/2s, 1/1/23  AA  485,000  523,965 

MA State Hlth. & Edl. Fac. Auth. Rev. Bonds       
(Suffolk U.), Ser. A, 6 1/4s, 7/1/30  Baa2  1,000,000  1,140,970 
(Quincy Med. Ctr.), Ser. A, 6 1/4s, 1/15/28       
(In default) †  D/P  330,776  33 
(Suffolk U.), Ser. A, U.S. Govt. Coll., 5 3/4s,       
7/1/39 (Prerefunded 7/1/19)  Baa2  950,000  1,070,299 
(Baystate Med. Ctr.), Ser. I, 5 3/4s, 7/1/36  A+  1,500,000  1,685,010 
(Springfield College), 5 5/8s, 10/15/40  Baa1  450,000  498,519 
(Springfield College), 5 1/2s, 10/15/31  Baa1  1,100,000  1,231,131 
(Springfield College), 5 1/2s, 10/15/26  Baa1  1,500,000  1,700,295 
(Fisher College), Ser. A, 5 1/8s, 4/1/37  BBB  250,000  257,175 
(Milford Regl. Med.), Ser. E, 5s, 7/15/22  Baa3  2,200,000  2,286,240 

MA State Port Auth. Special Fac. Rev. Bonds       
(Conrac), Ser. A, 5 1/8s, 7/1/41  A  750,000  840,075 

MA State Trans. Fund Rev. Bonds       
(Rail Enhancement Program), Ser. A       
5s, 6/1/24  Aaa  650,000  829,212 
5s, 6/1/23  Aaa  2,885,000  3,613,116 

Metro. Boston, Trans. Pkg. Corp. Rev. Bonds       
(Systemwide Pkg.), 5 1/4s, 7/1/33  A1  1,500,000  1,770,825 
5s, 7/1/41  A1  1,500,000  1,728,210 

  27,225,939 
Michigan (4.6%)     
Detroit, Wtr. Supply Syst. Rev. Bonds, Ser. B,       
AGM, 6 1/4s, 7/1/36  AA  1,660,000  1,875,916 

Flint, Hosp. Bldg. Auth. Rev. Bonds, Ser. A,       
5 1/4s, 7/1/39  Ba1  750,000  765,638 

Kentwood, Economic Dev. Rev. Bonds       
(Holland Home), 5 5/8s, 11/15/32  BB+/F  2,195,000  2,334,843 

MI State Fin. Auth. Rev. Bonds       
(Presbyterian Villages of MI), 5 1/2s, 11/15/45  BB+/F  500,000  521,455 
(Local Govt. Loan Program — Detroit Wtr. & Swr.       
Dept. (DWSD)), Ser. D-2, 5s, 7/1/34  BBB+  400,000  460,520 
(Detroit Wtr. & Swr.), Ser. C-6, 5s, 7/1/33  A–  600,000  689,052 

MI State Hosp. Fin. Auth. Rev. Bonds       
Ser. A, 6 1/8s, 6/1/39 (Prerefunded 6/1/19)  AA+  2,000,000  2,311,580 
(Henry Ford Hlth.), 5 3/4s, 11/15/39  A3  1,600,000  1,825,856 
(Henry Ford Hlth. Syst.), Ser. A,       
5 1/4s, 11/15/46  A3  2,565,000  2,622,661 

MI State Strategic Fund Ltd. Rev. Bonds       
(Worthington Armstrong Venture), 5 3/4s,       
10/1/22 (Escrowed to maturity)  AAA/P  1,350,000  1,654,871 

 

26  Managed Municipal Income Trust 

 



MUNICIPAL BONDS AND NOTES (129.1%)* cont.  Rating**  Principal amount  Value 

 
Michigan cont.       
MI State Strategic Fund Ltd. Oblig. Rev. Bonds       
(Cadillac Place Office Bldg.), 5 1/4s, 10/15/26  Aa3  $1,250,000  $1,477,063 

Monroe Cnty., Hosp. Fin. Auth. Rev. Bonds       
(Mercy Memorial Hosp. Corp.), 5 1/2s, 6/1/20       
(Prerefunded 6/1/16)  AA–  1,480,000  1,485,565 

Wayne Cnty., Arpt. Auth. Rev. Bonds, Ser. A,       
5s, 12/1/21  A2  2,000,000  2,310,440 

  20,335,460 
Minnesota (2.4%)     
Douglas Cnty., Gross Hlth. Care Fac. Rev. Bonds       
(Douglas Cnty. Hosp.)       
6 1/4s, 7/1/34 (Prerefunded 7/1/18)  AAA/P  1,940,000  2,165,331 
6 1/4s, 7/1/34 (Prerefunded 7/1/18)  AAA/P  1,060,000  1,183,119 

Inver Grove Heights, Nursing Home Rev. Bonds       
(Presbyterian Homes Care), 5 3/8s, 10/1/26  B/P  700,000  700,413 

North Oaks, Sr. Hsg. Rev. Bonds (Presbyterian       
Homes North Oaks), 6 1/8s, 10/1/39  BB/P  315,000  327,181 

Northfield, Hosp. Rev. Bonds, 5 3/8s, 11/1/26  BBB  750,000  764,970 

Otsego, Charter School Lease Rev. Bonds       
(Kaleidoscope Charter School), Ser. A, 5s, 9/1/34  BB+  800,000  835,376 

Rochester, Hlth. Care Fac. Rev. Bonds       
(Olmsted Med. Ctr.), 5 7/8s, 7/1/30  A–/F  1,000,000  1,164,720 

Sartell, Hlth. Care & Hsg. Facs. Rev. Bonds       
(Country Manor Campus, LLC)       
5 1/4s, 9/1/30  B–/P  500,000  526,595 
5 1/4s, 9/1/27  B–/P  750,000  800,168 

St. Paul, Hsg. & Redev. Auth. Charter School Lease       
Rev. Bonds (Nova Classical Academy), Ser. A       
6 5/8s, 9/1/42  BBB–  250,000  283,098 
6 3/8s, 9/1/31  BBB–  250,000  289,628 

St. Paul, Hsg. & Redev. Auth. Hosp. Fac.       
Rev. Bonds (Healtheast Care Syst.), Ser. A,       
5s, 11/15/40  BBB–  300,000  335,424 

St. Paul, Port Auth. Lease Rev. Bonds       
(Regions Hosp. Pkg. Ramp), Ser. 1, 5s, 8/1/36  A–/P  1,125,000  1,132,031 

  10,508,054 
Mississippi (0.8%)     
MS State Bus. Fin. Commission Gulf Opportunity       
Zone VRDN (Chevron USA, Inc.), Ser. E,       
0.28s, 12/1/30  VMIG1  1,500,000  1,500,000 

Warren Cnty., Gulf Opportunity Zone Rev. Bonds       
(Intl. Paper Co.), Ser. A, 6 1/2s, 9/1/32  Baa2  1,600,000  1,792,256 

  3,292,256 
Missouri (0.6%)     
Kansas City, Indl. Dev. Auth. Hlth. Fac. Rev.       
Bonds (First Mtge. Bishop Spencer), Ser. A,       
6 1/2s, 1/1/35  B/P  1,500,000  1,500,120 

St. Louis Arpt. Rev. Bonds (Lambert-St. Louis       
Intl.), Ser. A-1, 6 5/8s, 7/1/34  A3  1,000,000  1,162,880 

      2,663,000 

 

Managed Municipal Income Trust  27 

 



MUNICIPAL BONDS AND NOTES (129.1%)* cont.  Rating**  Principal amount  Value 

 
Montana (0.1%)       
MT Fac. Fin. Auth. Rev. Bonds (Sr. Living       
St. John’s Lutheran), Ser. A, 6s, 5/15/25  B+/P  $500,000  $500,875 

  500,875 
Nebraska (0.6%)     
Central Plains, Energy Rev. Bonds (NE Gas No. 1),       
Ser. A, 5 1/4s, 12/1/18  A3  1,500,000  1,649,955 

Lancaster Cnty., Hosp. Auth. Rev. Bonds       
(Immanuel Oblig. Group), 5 1/2s, 1/1/30  AA/F  1,000,000  1,135,350 

  2,785,305 
Nevada (1.2%)     
Clark Cnty., Arpt. Rev. Bonds, Ser. A-2, 5s, 7/1/33  A1  1,050,000  1,227,408 

Clark Cnty., Impt. Dist. Special Assmt. Bonds       
(Mountains Edge Local No. 142), 5s, 8/1/21  BBB  570,000  632,768 

Clark Cnty., Impt. Dist. No. 159 Special       
Assessment Bonds (Summerlin       
Village 16A), 5s, 8/1/32  B+/P  500,000  520,620 

Henderson, Local Impt. Dist. Special       
Assmt. Bonds       
(No. T-17), 5s, 9/1/18  BBB–/P  350,000  358,715 
(No. T-18), 5s, 9/1/16  B–/P  715,000  716,308 

Las Vegas, Special Assmt. Bonds       
5s, 6/1/31  B+/P  450,000  474,107 
(Dist. No. 607 Local Impt.), 5s, 6/1/23  BBB–/P  405,000  457,658 

Las Vegas, Impt. Dist. No. 812 Special Assessment       
Bonds (Summerlin Village 24), 5s, 12/1/35  B/P  250,000  255,915 

Las Vegas, Redev. Agcy. Tax Allocation Bonds       
(Tax Increment), 5s, 6/15/40  BBB+  600,000  692,670 

  5,336,169 
New Hampshire (1.5%)     
NH State Bus. Fin. Auth. Rev. Bonds       
(Elliot Hosp. Oblig. Group), Ser. A, 6s, 10/1/27  Baa1  1,700,000  1,916,342 

NH State Bus. Fin. Auth. Solid Waste Disp. 144A       
Mandatory Put Bonds (10/1/19)       
(Casella Waste Syst., Inc.), 4s, 4/1/29  BB–  350,000  359,079 

NH State Hlth. & Ed. Fac. Auth. Rev. Bonds       
(Rivermead), Ser. A, 6 7/8s, 7/1/41  BB+/P  2,000,000  2,248,620 
(Rivermead), Ser. A, 6 5/8s, 7/1/31  BB+/P  1,320,000  1,490,465 
(Kendel at Hanover), 5s, 10/1/40  BBB+/F  585,000  675,891 

  6,690,397 
New Jersey (9.1%)     
Burlington Cnty., Bridge Comm. Econ. Dev. Rev.       
Bonds (The Evergreens), 5 5/8s, 1/1/38  BB+/P  1,500,000  1,581,645 

NJ State Econ. Dev. Auth. Rev. Bonds       
(Ashland School, Inc.), 6s, 10/1/33  BBB  1,000,000  1,153,410 
(NYNJ Link Borrower, LLC), 5 3/8s, 1/1/43  BBB–  1,000,000  1,127,100 
(MSU Student Hsg. — Provident Group —       
Montclair LLC), 5 3/8s, 6/1/25  Baa3  2,000,000  2,223,060 
(Lions Gate), 5 1/4s, 1/1/44  BB–/P  300,000  312,843 
(Continental Airlines, Inc.), 5 1/4s, 9/15/29  BB–  3,000,000  3,343,440 
(United Methodist Homes), Ser. A, 5s, 7/1/29  BBB–/F  500,000  546,865 
5s, 6/15/26  Baa1  500,000  543,520 

 

28  Managed Municipal Income Trust 

 



MUNICIPAL BONDS AND NOTES (129.1%)* cont.  Rating**  Principal amount  Value 

 
New Jersey cont.       
NJ State Econ. Dev. Auth. Fac. Rev. Bonds       
(Continental Airlines, Inc.), 5 5/8s, 11/15/30  BB–  $1,500,000  $1,719,270 

NJ State Econ. Dev. Auth. Retirement Cmnty. Rev.       
Bonds (Seabrook Village, Inc.), 5 1/4s, 11/15/36       
(Prerefunded 11/15/16)  AAA/P  860,000  881,053 

NJ State Econ. Dev. Auth. Wtr. Fac. Rev. Bonds       
(NJ American Wtr. Co.)       
Ser. A, 5.7s, 10/1/39  A1  2,600,000  2,899,910 
Ser. D, 4 7/8s, 11/1/29  A1  700,000  759,367 

NJ State Hlth. Care Fac. Fin. Auth. Rev. Bonds       
(St. Joseph Hlth. Care Syst.), 6 5/8s, 7/1/38  Baa3  2,250,000  2,473,695 
(St. Peter’s U. Hosp.), 6 1/4s, 7/1/35  Ba1  2,000,000  2,197,960 
(Princeton HealthCare Syst.), Ser. A, 5s, 7/1/39  Baa2  1,000,000  1,165,400 
(Holy Name Hosp.), 5s, 7/1/36  Baa2  2,500,000  2,510,125 

North Hudson, Swr. Auth. Rev. Bonds,       
Ser. A, 5s, 6/1/42  A  1,000,000  1,131,040 

Rutgers State U. VRDN, Ser. A, 0.24s, 5/1/18  VMIG1  2,460,000  2,460,000 

Tobacco Settlement Fin. Corp. Rev. Bonds       
Ser. 1A, 5s, 6/1/41  B3  5,000,000  4,739,900 
Ser. 1A, 4 3/4s, 6/1/34  B3  2,210,000  2,081,931 
zero %, 6/1/41  A–  10,000,000  2,681,800 

Union Cnty., Util. Auth. Resource Recvy. Fac.       
Lease Rev. Bonds (Covanta Union), Ser. A,       
5 1/4s, 12/1/31  AA+  1,450,000  1,600,641 

  40,133,975 
New Mexico (1.7%)     
Farmington, Poll. Control Rev. Bonds       
(Public Service Co. of San Juan, NM), Ser. D,       
5.9s, 6/1/40  BBB+  500,000  565,880 
(Public Service Co. of San Juan, NM), Ser. B,       
4 7/8s, 4/1/33  BBB+  4,500,000  4,566,690 
(AZ Pub. Svc. Co.), Ser. B, 4.7s, 9/1/24  A2  2,000,000  2,229,040 

  7,361,610 
New York (7.1%)     
Broome Cnty., Indl. Dev. Agcy. Continuing Care       
Retirement Rev. Bonds (Good Shepard Village),       
Ser. A, 6 3/4s, 7/1/28 (Prerefunded 7/1/18)  AAA/P  600,000  676,506 

NY City, Indl. Dev. Agcy. Special Fac. Mandatory       
Put Bonds (8/1/16) (JFK Intl. Arpt.),       
Ser. B, 2s, 8/1/28  BB/P  1,000,000  1,001,720 

NY City, Indl. Dev. Agcy. Special Fac. Rev.       
Bonds (American Airlines — JFK Intl. Arpt.),       
7 1/2s, 8/1/16  B+/P  815,000  827,690 

NY City, Muni. Wtr. & Swr. Fin. Auth. Rev. Bonds,       
5s, 6/15/31 T   AA+  10,000,000  11,718,594 

NY State Dorm. Auth. Rev. Bonds, Ser. A,       
5s, 3/15/38  AAA  1,500,000  1,748,505 

NY State Dorm. Auth. Non-State Supported       
Debt Rev. Bonds (Orange Regl. Med. Ctr.),       
6 1/4s, 12/1/37  Ba1  725,000  792,947 

 

Managed Municipal Income Trust  29 

 



MUNICIPAL BONDS AND NOTES (129.1%)* cont.  Rating**  Principal amount  Value 

 
New York cont.       
NY State Dorm. Auth. Non-Supported Debt Rev.       
Bonds (NYU Hosp. Ctr.), 5s, 7/1/34  A3  $500,000  $585,680 

NY State Dorm. Auth. Revs. bonds, Ser. C,       
5s, 3/15/31 T   AAA  5,000,000  5,848,296 

NY State Env. Fac. Corp. Solid Waste Disp. 144A       
Mandatory Put Bonds (12/2/19) (Casella Waste       
Syst., Inc.), 3 3/4s, 12/1/44  BB–  1,000,000  1,024,560 

NY State Liberty Dev. Corp. 144A Rev. Bonds       
(World Trade Ctr.)       
Class 2, 5 3/8s, 11/15/40  BB–/P  750,000  833,640 
Class 1, 5s, 11/15/44  BB–/P  2,750,000  2,982,238 

Onondaga, Civic Dev. Corp. Rev. Bonds       
(St. Joseph’s Hosp. Hlth. Ctr.), U.S. Govt. Coll.,       
5 1/8s, 7/1/31 (Prerefunded 7/1/19)  AAA/P  1,620,000  1,832,641 

Port Auth. of NY & NJ Rev. Bonds (Kennedy Intl.       
Arpt. — 5th Installment), 6 3/4s, 10/1/19  BBB–/P  100,000  100,025 

Port Auth. of NY & NJ Special Oblig. Rev. Bonds       
(JFK Intl. Air Term.), 6s, 12/1/42  Baa1  1,000,000  1,164,980 

  31,138,022 
North Carolina (2.9%)     
Dept. Trans. Private Activity Rev. Bonds       
(I-77 Hot Lanes), 5s, 12/31/37  BBB–/F  300,000  331,020 

NC Eastern Muni. Pwr. Agcy. Syst. Rev. Bonds,       
Ser. C, 6 3/4s, 1/1/24 (Prerefunded 1/1/19)  AAA/F  750,000  865,410 

NC State Med. Care Cmnty. Hlth. Care       
Fac. Rev. Bonds       
(Presbyterian Homes), 5.4s, 10/1/27  BB/P  2,000,000  2,020,140 
(First Mtge. — Presbyterian Homes),       
5 3/8s, 10/1/22  BB/P  1,110,000  1,125,584 

NC State Med. Care Comm. Hlth. Fac. Rev. Bonds       
(Pennybyrn at Maryfield, Inc.), 5s, 10/1/35  BB/P  375,000  398,239 

NC State Med. Care Comm. Retirement       
Fac. Rev. Bonds       
(Carolina Village), 6s, 4/1/38  BB/P  1,000,000  1,042,580 
(First Mtge.), Ser. A-05, 5 1/2s, 10/1/35  BBB/P  1,730,000  1,731,765 
(Salemtowne), 5 1/4s, 10/1/37  BB/P  385,000  419,889 
(First Mtge.), Ser. A-05, 5 1/4s, 10/1/25  BBB/P  95,000  95,092 
(Forest at Duke, Inc. (The)), 5 1/8s, 9/1/27  BBB+/F  1,000,000  1,053,470 
(Aldersgate United Methodist       
Church), 5s, 7/1/45  BB/P  825,000  879,879 
(United Church Homes & Svcs. Oblig. Group),       
Ser. A, 5s, 9/1/37  BB/P  500,000  511,935 
(United Methodist Retirement Homes), Ser. A,       
5s, 10/1/35 ##  BBB/F  500,000  587,210 

NC State Med. Care Comm. Retirement Fac. Rev.       
Bonds (Salemtowne), 5 3/8s, 10/1/45  BB/P  1,615,000  1,759,849 

      12,822,062 

 

30  Managed Municipal Income Trust 

 



MUNICIPAL BONDS AND NOTES (129.1%)* cont.  Rating**  Principal amount  Value 

 
Ohio (4.7%)       
Buckeye, Tobacco Settlement Fin.       
Auth. Rev. Bonds       
Ser. A-3, 6 1/4s, 6/1/37  B–  $850,000  $846,991 
Ser. A-2, 6s, 6/1/42  B3  2,500,000  2,473,850 
Ser. A-2, 5 7/8s, 6/1/47  B3  3,500,000  3,385,935 
Ser. A-2, 5 7/8s, 6/1/30  B–  1,315,000  1,281,191 
Ser. A-2, 5 3/4s, 6/1/34  B–  3,675,000  3,519,621 

Franklin Cnty., Hlth. Care Fac. Rev. Bonds       
(OH Presbyterian Retirement Svcs. (OPRS)       
Cmntys. Oblig. Group), Ser. A, 5 5/8s, 7/1/26  BBB–  2,250,000  2,470,883 

Lake Cnty., Hosp. Fac. Rev Bonds (Lake Hosp.       
Syst., Inc.), Ser. C, U.S. Govt. Coll., 5 5/8s,       
8/15/29 (Prerefunded 8/15/18)  AAA/P  1,285,000  1,424,204 

Lake Cnty., Hosp. Fac. Rev. Bonds (Lake Hosp.       
Syst., Inc.), Ser. C, 5 5/8s, 8/15/29  A3  245,000  269,311 

OH State Higher Edl. Fac. Comm. Rev. Bonds       
(Kenyon College), 5s, 7/1/44  A1  800,000  893,592 

OH State Private Activity Rev. Bonds       
(Portsmouth Bypass), AGM, 5s, 12/31/35  AA  750,000  862,800 

OH State Wtr. Dev. Auth. Poll. Control Mandatory       
Put Bonds (6/3/19) (FirstEnergy Nuclear       
Generation, LLC), 4s, 12/1/33  Baa3  1,550,000  1,623,672 

Southeastern OH Port Auth. Hosp.       
Fac. Rev. Bonds       
5 3/4s, 12/1/32  BB/F  900,000  1,025,352 
(Memorial Hlth. Syst. Oblig. Group), 5s, 12/1/43  BB/F  150,000  154,851 

Toledo-Lucas Cnty., Port Auth. Rev. Bonds       
(CSX Transn, Inc.), 6.45s, 12/15/21  Baa1  500,000  619,985 

  20,852,238 
Oklahoma (0.8%)     
Tulsa Cnty., Indl. Auth. Rev. Bonds (Sr. Living       
Cmnty. Montereau, Inc.), Ser. A, 7 1/8s, 11/1/30  BB–/P  1,250,000  1,362,950 

Tulsa, Muni. Arpt. Trust Mandatory Put Bonds       
(6/1/25) (American Airlines, Inc.), 5s, 6/1/35  BB–  750,000  858,120 

Tulsa, Muni. Arpt. Trust Rev. Bonds       
(American Airlines, Inc.), Ser. B, 5 1/2s, 12/1/35  B+/P  1,250,000  1,391,363 

  3,612,433 
Oregon (0.4%)     
Multnomah Cnty., Hosp. Fac. Auth. Rev. Bonds       
(Mirabella at South Waterfront), Ser. A,       
5.4s, 10/1/44  BB–/P  500,000  554,065 
(Terwilliger Plaza, Inc.), 5s, 12/1/29  BBB/F  350,000  380,587 

Warm Springs Reservation, Confederated Tribes       
144A Rev. Bonds (Pelton Round Butte Tribal),       
Ser. B, 6 3/8s, 11/1/33  A3  700,000  768,985 

  1,703,637 
Pennsylvania (4.1%)     
Allegheny Cnty., Higher Ed. Bldg. Auth.       
Rev. Bonds (Robert Morris U.), Ser. A,       
5 1/2s, 10/15/30  Baa3  1,000,000  1,114,360 

Chester Cnty., Indl. Dev. Auth. Rev. Bonds       
(Renaissance Academy Charter School),       
5s, 10/1/34  BBB–  350,000  382,876 

 

Managed Municipal Income Trust  31 

 



MUNICIPAL BONDS AND NOTES (129.1%)* cont.  Rating**  Principal amount  Value 

 
Pennsylvania cont.       
Chester Cnty., Indl. Dev. Auth. Student Hsg. Rev.       
Bonds (West Chester U. Student Hsg., LLC),       
Ser. A, 5s, 8/1/45  Baa3  $1,000,000  $1,050,080 

Lancaster Cnty., Hosp. Auth. Rev. Bonds       
(Brethren Village), Ser. A, 6 3/8s, 7/1/30  BB–/P  625,000  645,044 

Lycoming Cnty., Auth. Hlth. Syst. Rev. Bonds       
(Susquehanna Hlth. Syst.), Ser. A, 5 3/4s, 7/1/39  A–  3,000,000  3,333,810 

Moon, Indl. Dev. Auth. Rev. Bonds (Baptist Homes       
Society Oblig. Group), 5 3/4s, 7/1/35  B+/P  1,500,000  1,559,940 

Northampton Cnty., Hosp. Auth. Mandatory Put       
Bonds (8/15/16) (St. Luke’s Hosp. — Bethlehem),       
Ser. C, 4 1/2s, 8/15/32  A3  1,500,000  1,512,480 

Northampton Cnty., Indl. Dev. Auth. Tax Alloc.       
Bonds (Rte. 33), 7s, 7/1/32  B/P  800,000  875,088 

PA State Higher Edl. Fac. Auth. Rev. Bonds       
(Shippensburg U.), 6 1/4s, 10/1/43  Baa3  500,000  564,570 
(Gwynedd Mercy College), Ser. KK1,       
5 3/8s, 5/1/42  BBB  785,000  858,170 
(Indiana U.), Ser. A, 5s, 7/1/41  BBB+  500,000  537,190 

PA State Tpk. Comm. Rev. Bonds, Ser. A,       
5s, 12/1/38  A1  500,000  579,200 

Philadelphia, Auth. for Indl. Dev. Rev. Bonds       
(Master Charter School), 6s, 8/1/35  BBB+  1,055,000  1,158,939 

Philadelphia, Gas Wks. Rev. Bonds,       
Ser. 9, 5s, 8/1/30  A–  1,000,000  1,111,910 

Philadelphia, Hosp. & Higher Ed. Fac. Auth. Rev.       
Bonds (Graduate Hlth. Syst. Oblig. Group), 7 1/4s,       
7/1/13 (In default) †***  D/P  2,583,821  258 

Susquehanna, Area Regl. Arpt. Syst. Auth. Rev.       
Bonds, Ser. A, 6 1/2s, 1/1/38  Baa3  1,325,000  1,410,966 

West Shore Area Auth. Rev. Bonds       
(Lifeways at Messiah Village), Ser. A, 5s, 7/1/35  BBB–/F  785,000  859,151 

Wilkes-Barre, Fin. Auth. Rev. Bonds (Wilkes U.),       
5s, 3/1/22 (Prerefunded 3/1/17)  BBB  560,000  578,542 

  18,132,574 
Puerto Rico (0.6%)     
Children’s Trust Fund Tobacco Settlement (The)       
Rev. Bonds, 5 5/8s, 5/15/43  Ba2  850,000  850,009 

Cmnwlth. of PR, G.O. Bonds       
Ser. A, FGIC, 5 1/2s, 7/1/21  Caa3  1,000,000  743,750 
(Pub. Impt.), Ser. A, NATL, 5 1/2s, 7/1/20  AA–  1,000,000  1,059,330 

  2,653,089 
South Carolina (2.0%)     
Georgetown Cnty., Env. Impt. Rev. Bonds       
(Intl. Paper Co.), Ser. A, 5s, 8/1/30  Baa2  1,135,000  1,137,724 

SC State Pub. Svc. Auth. Rev. Bonds       
(Santee Cooper), Ser. A, 5 3/4s, 12/1/43  AA–  3,000,000  3,682,920 
Ser. A, 5 1/2s, 12/1/54  AA–  2,000,000  2,353,020 

SC State Pub. Svcs. Auth. Rev. Bonds, Ser. E,       
5 1/4s, 12/1/55  AA–  1,500,000  1,749,150 

      8,922,814 

 

32  Managed Municipal Income Trust 

 



MUNICIPAL BONDS AND NOTES (129.1%)* cont.  Rating**  Principal amount  Value 

 
South Dakota (0.3%)       
SD State Hlth. & Edl. Fac. Auth. Rev. Bonds       
(Sanford Oblig Group), 5s, 11/1/45  A1  $1,250,000  $1,421,950 

  1,421,950 
Tennessee (0.5%)     
Johnson City, Hlth. & Edl. Fac. Board       
Hosp. Rev. Bonds (Mountain States Hlth.       
Alliance), 6s, 7/1/38  Baa1  1,450,000  1,639,399 

Metro. Govt. Nashville & Davidson Ctny. Hlth. &       
Edl. Fac. Board Rev. Bonds (Vanderbilt U.       
Med. Ctr.), Ser. A, 5s, 7/1/40  A3  450,000  524,003 

  2,163,402 
Texas (13.5%)     
Brazos, Harbor Indl. Dev. Corp. Env. Fac.       
Mandatory Put Bonds (5/1/28) (Dow Chemical),       
5.9s, 5/1/38  BBB  3,735,000  4,003,621 

Central TX Regl. Mobility Auth. Rev. Bonds       
Ser. A, 5s, 1/1/45  BBB+  250,000  285,895 
Ser. A, 5s, 1/1/40  BBB+  500,000  575,220 
(Sr. Lien), Ser. A, 5s, 1/1/33  BBB+  525,000  606,422 

Clifton, Higher Ed. Fin. Corp. Rev. Bonds       
(Idea Pub. Schools)       
6s, 8/15/33  BBB  500,000  592,395 
5s, 8/15/32  BBB  315,000  345,136 

Grand Parkway Trans. Corp. Rev. Bonds, Ser. B,       
5 1/4s, 10/1/51  AA+  2,000,000  2,318,480 

Harris Cnty., Cultural Ed. Fac. Fin. Corp. Rev.       
Bonds (YMCA of the Greater Houston Area),       
Ser. A, 5s, 6/1/33  Baa3  1,000,000  1,088,680 

Harris Cnty., Cultural Ed. Fac. Fin. Corp. VRDN       
(Texas Med. Ctr.), Ser. B-1, 0.3s, 9/1/31  VMIG1  930,000  930,000 
(The Methodist Hosp.), Ser. C-1, 0.28s, 12/1/24  A-1+  1,000,000  1,000,000 

Houston, Arpt. Syst. Rev. Bonds       
Ser. B-1, 5s, 7/15/35  BB–  2,500,000  2,763,600 
Ser. B-1, 5s, 7/15/30  BB–  650,000  732,063 
Ser. A, 5s, 7/1/24  A+  1,500,000  1,720,260 
(United Airlines, Inc.), 4 3/4s, 7/1/24  BB–  1,300,000  1,465,503 

La Vernia, Higher Ed. Fin. Corp. Rev. Bonds       
(Kipp, Inc.), Ser. A       
6 3/8s, 8/15/44 (Prerefunded 8/15/19)  BBB  1,100,000  1,290,718 
6 1/4s, 8/15/39 (Prerefunded 8/15/19)  BBB  1,975,000  2,309,466 

La Vernia, Higher Ed. Fin. Corp. 144A Rev.       
Bonds (Meridian World School, LLC), Ser. A,       
5 1/4s, 8/15/35  BB+  1,000,000  1,030,370 

Love Field, Arpt. Modernization Corp. Special       
Fac. Rev. Bonds (Southwest Airlines Co.),       
5 1/4s, 11/1/40  Baa1  3,500,000  3,916,010 

Matagorda Cnty., Poll. Control Rev. Bonds       
(Central Pwr. & Light Co.), Ser. A, 6.3s, 11/1/29  Baa1  1,000,000  1,121,090 
(Dist. No. 1), Ser. A, AMBAC, 4.4s, 5/1/30  Baa1  1,250,000  1,478,613 

 

Managed Municipal Income Trust  33 

 



MUNICIPAL BONDS AND NOTES (129.1%)* cont.  Rating**  Principal amount  Value 

 
Texas cont.       
New Hope, Cultural Ed. Fac. Fin. Corp. Rev. Bonds       
(Wesleyan Homes, Inc.), 5 1/2s, 1/1/43  BB–/P  $500,000  $518,785 
(NCCD College Station Properties, LLC),       
Ser. A, 5s, 7/1/47  Baa3  500,000  539,195 
(Collegiate Hsg.-Tarleton St.), 5s, 4/1/39  Baa3  500,000  528,730 
(TX A&M U. Collegiate & Student Hsg. College       
Station I, LLC), Ser. A, 5s, 4/1/29  Baa3  530,000  602,923 

Newark, Cultural Ed. Fac. Fin. Corp. Rev. Bonds       
(AW Brown-Fellowship Leadership Academy),       
Ser. A, 6s, 8/15/42  BBB–  670,000  685,015 

North Texas Edl. Fin. Co. Rev. Bonds (Uplift Edl.),       
Ser. A, 5 1/4s, 12/1/47  BBB–  2,000,000  2,168,360 

North TX, Tollway Auth. Rev. Bonds       
(1st Tier), Ser. A, 6s, 1/1/25  A1  120,000  129,676 
(1st Tier), Ser. A, FNMA Coll., U.S. Govt. Coll., 6s,       
1/1/25 (Prerefunded 1/1/18)  AAA/P  880,000  955,838 
(Toll 2nd Tier), Ser. F, 5 3/4s, 1/1/38       
(Prerefunded 1/1/18)  A2  750,000  811,545 

Red River, Hlth. Retirement Fac. Dev.       
Corp. Rev. Bonds       
(Happy Harbor Methodist Home, Inc.), Ser. A,       
7 3/4s, 11/15/44  B–/P  420,000  495,886 
(Sears Methodist Retirement Syst. Oblig.       
Group), Ser. C, 6 1/4s, 5/9/53 (In default) †  D/P  39,000  59 
(Sears Methodist Retirement Syst. Oblig.       
Group), Ser. B, 6.15s, 11/15/49 (In default) †  D/P  749,000  1,124 
(Sears Methodist Retirement Syst. Oblig.       
Group), Ser. A, 6.05s, 11/15/46 (In default) †  D/P  441,000  662 
(Sears Methodist Retirement Syst. Oblig.       
Group), Ser. D, 6.05s, 11/15/46 (In default) †  D/P  76,000  114 
(Sears Methodist Retirement Syst. Oblig.       
Group), Ser. A, 5.45s, 11/15/38 (In default) †  D/P  1,124,000  1,686 
(Sears Methodist Retirement Syst. Oblig.       
Group), Ser. A, 5.15s, 11/15/27 (In default) †  D/P  593,000  890 

Tarrant Cnty., Cultural Ed. Fac. Fin. Corp.       
Retirement Fac. Rev. Bonds       
(Sr. Living Ctr.), Ser. A, 8 1/4s, 11/15/39  B+/P  2,000,000  2,055,000 
(Buckingham Sr. Living Cmnty., Inc.), Ser. A,       
5 1/2s, 11/15/45  BB/F  1,000,000  1,046,010 
(Buckner Retirement Svcs., Inc.),       
5 1/4s, 11/15/37  A/F  1,900,000  1,976,798 
(Air Force Village), 5 1/8s, 5/15/27  BBB–/F  2,850,000  2,869,409 
(Buckner Retirement Svcs.), Ser. B,       
5s, 11/15/46  A/F  1,500,000  1,725,225 

Travis Cnty., Cultural Ed. Fac. Fin. Corp. Rev.       
Bonds (Wayside Schools), Ser. A, 5 1/4s, 8/15/42  BB+  1,000,000  1,029,150 

TX Muni. Gas Acquisition & Supply Corp. I Rev.       
Bonds, Ser. A, 5 1/4s, 12/15/24  Baa1  2,000,000  2,423,800 

 

34  Managed Municipal Income Trust 

 



MUNICIPAL BONDS AND NOTES (129.1%)* cont.  Rating**  Principal amount  Value 

 
Texas cont.       
TX Private Activity Surface Trans.       
Corp. Rev. Bonds       
(NTE Mobility), 7 1/2s, 12/31/31  Baa2  $2,000,000  $2,409,680 
(LBJ Infrastructure), 7s, 6/30/40  Baa3  2,500,000  2,997,075 

TX State Dept. of Hsg. & Cmnty. Affairs Rev.       
Bonds, Ser. C, GNMA Coll., FNMA Coll., FHLMC       
Coll., 6.9s, 7/2/24  AA+  200,000  200,694 

TX State Muni. Gas Acquisition & Supply Corp. III       
Rev. Bonds, 5s, 12/15/28  A3  1,500,000  1,717,410 

TX State Private Activity Bond Surface Trans.       
Corp. Rev. Bonds (Blueridge Trans. Group, LLC       
(SH 288 Toll Lane)), 5s, 12/31/50  Baa3  750,000  822,068 

TX State Wtr. Dev. Board Rev. Bonds, Ser. A,       
5s, 10/15/45  AAA  1,000,000  1,193,400 

  59,479,749 
Virginia (2.5%)     
Albemarle Cnty., Indl. Dev. Auth. Res.       
Care Fac. Rev. Bonds (Westminster-       
Canterbury), 5s, 1/1/24  BB/P  600,000  612,456 

Alexandria, Indl. Dev. Auth. Res. Care Fac. Mtge.       
Rev. Bonds (Goodwin House, Inc.), 5s, 10/1/45  BBB/F  1,500,000  1,690,530 

Cherry Hill Cmnty., Dev. Auth. 144A Special       
Assmt. Bonds (Potomac Shores), 5.4s, 3/1/45  B/P  1,000,000  1,035,400 

Henrico Cnty., Econ. Dev. Auth. Res. Care Fac.       
Rev. Bonds (United Methodist Homes), 5s, 6/1/22  BB+/P  625,000  715,200 

Lower Magnolia Green Cmnty., Dev. Auth. 144A       
Special Assmt. Bonds, 5s, 3/1/35  B/P  500,000  495,630 

Lynchburg, Indl. Dev. Auth. Res. Care Fac. Rev.       
Bonds (Westminster-Canterbury)       
5s, 7/1/31  BB+/P  1,250,000  1,274,475 
4 7/8s, 7/1/21  BB+/P  1,000,000  1,030,870 

VA State Small Bus. Fin. Auth. Rev. Bonds       
(Elizabeth River Crossings OPCO,       
LLC), 6s, 1/1/37  BBB–  900,000  1,065,186 
(Express Lanes, LLC), 5s, 7/1/34  BBB–  1,150,000  1,261,930 

Washington Cnty., Indl. Dev. Auth. Hosp. Fac. Rev.       
Bonds (Mountain States Hlth. Alliance), Ser. C,       
7 3/4s, 7/1/38  Baa1  1,700,000  1,943,678 

  11,125,355 
Washington (3.6%)     
WA State G.O. Bonds (Sr. 520 Corridor-Motor       
Vehicle Tax), Ser. C, 5s, 6/1/28 T   AA+  5,000,000  5,856,053 

Port of Seattle, Rev. Bonds, Ser. C, 5s, 4/1/40  A1  625,000  713,781 

Port Seattle, Port Indl. Dev. Corp. Rev. Bonds       
(Delta Airlines, Inc.), 5s, 4/1/30  BB+  300,000  322,059 

Skagit Cnty., Pub. Hosp. Rev. Bonds (Dist. No.       
001), 5 3/4s, 12/1/35  Baa2  2,500,000  2,753,575 

Tobacco Settlement Auth. of WA Rev. Bonds,       
5 1/4s, 6/1/32  A–  1,275,000  1,444,371 

WA State Higher Ed. Fac. Auth. Rev. Bonds       
(Whitworth U.), 5 5/8s, 10/1/40  Baa1  400,000  434,848 

 

Managed Municipal Income Trust  35 

 



MUNICIPAL BONDS AND NOTES (129.1%)* cont.  Rating**  Principal amount  Value 

 
Washington cont.       
WA State Hlth. Care Fac. Auth. Rev. Bonds       
(WA Hlth. Svcs.), 7s, 7/1/39       
(Prerefunded 7/1/19)  Baa1  $1,000,000  $1,188,470 
(Kadlec Med. Ctr.), 5 1/2s, 12/1/39       
(Prerefunded 12/1/20)  AAA/P  1,300,000  1,555,801 
(Central WA Hlth. Svcs. Assn.), 4s, 7/1/36  Baa1  810,000  820,708 

WA State Hsg. Fin. Comm. 144A Rev. Bonds       
(Heron’s Key Oblig. Group), Ser. A, 7s, 7/1/50  B–/P  500,000  513,175 

  15,602,841 
West Virginia (0.2%)     
WV State Hosp. Fin. Auth. Rev. Bonds       
(Thomas Hlth. Syst.), 6 3/4s, 10/1/43  B+/P  735,000  776,777 

  776,777 
Wisconsin (1.6%)     
Pub. Fin. Auth. Arpt. Fac. Rev. Bonds       
(Sr. Oblig. Group), 5 1/4s, 7/1/28  BBB  350,000  390,422 

Pub. Fin. Auth. Exempt Fac. Rev. Bonds       
(Celanese U.S. Holdings, LLC), Ser. C,       
4.3s, 11/1/30  BB+  300,000  308,847 

WI State Hlth. & Edl. Fac. Auth. Rev. Bonds       
(St. Johns Cmntys. Inc.), Ser. A, 7 5/8s, 9/15/39       
(Prerefunded 9/15/19)  AAA/F  1,350,000  1,647,108 
(Prohealth Care, Inc.), 6 5/8s, 2/15/39       
(Prerefunded 2/15/19)  A1  1,250,000  1,444,563 
(St. John’s Cmnty., Inc.), Ser. B, 5s, 9/15/45  BBB+/F  250,000  266,660 

WI State Pub. Fin. Auth Sr. Living Rev. Bonds       
(Rose Villa, Inc.), Ser. A, 5 3/4s, 11/15/44  BB–/P  1,800,000  1,925,010 

WI State Pub. Fin. Auth. 144A Rev. Bonds       
(Church Home of Hartford, Inc.),       
Ser. A, 5s, 9/1/30  BB/F  800,000  867,328 

      6,849,938 
 
Total municipal bonds and notes (cost $515,347,549)    $567,522,978 
 
 
PREFERRED STOCKS (0.8%)*    Shares  Value 

 
MuniMae Tax Exempt Bond Subsidiary, LLC 144A Ser. A-5, 5s cum. pfd.  3,450,000  $3,657,000 

Total preferred stocks (cost $3,450,000)      $3,657,000 
 
 
COMMON STOCKS (—%)*    Shares  Value 

 
Tembec, Inc. (Canada) †    1,750  $1,241 

Total common stocks (cost $1,273,945)      $1,241 
 
 
TOTAL INVESTMENTS       

Total investments (cost $520,071,494)      $571,181,219 

 

36  Managed Municipal Income Trust 

 



Notes to the fund’s portfolio

Unless noted otherwise, the notes to the fund’s portfolio are for the close of the fund’s reporting period, which ran from November 1, 2015 through April 30, 2016 (the reporting period). Within the following notes to the portfolio, references to “ASC 820” represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures and references to “OTC”, if any, represent over-the-counter.

* Percentages indicated are based on net assets of $439,537,205.

** The Moody’s, Standard & Poor’s or Fitch ratings indicated are believed to be the most recent ratings available at the close of the reporting period for the securities listed. Ratings are generally ascribed to securities at the time of issuance. While the agencies may from time to time revise such ratings, they undertake no obligation to do so, and the ratings do not necessarily represent what the agencies would ascribe to these securities at the close of the reporting period. Securities rated by Putnam are indicated by “/P.” Securities rated by Fitch are indicated by “/F.” If a security is insured, it will usually be rated by the ratings organizations based on the financial strength of the insurer.

† This security is non-income-producing.

*** This security is in default of principal and interest.

## Forward commitment, in part or in entirety (Note 1).

F This security is valued by Putnam Management at fair value following procedures approved by the Trustees. Securities may be classified as Level 2 or Level 3 for ASC 820 based on the securities’ valuation inputs (Note 1).

T Underlying security in a tender option bond transaction. This security has been segregated as collateral for financing transactions.

At the close of the reporting period, the fund maintained liquid assets totaling $18,162,680 to cover tender option bonds.

144A after the name of an issuer represents securities exempt from registration under Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

On Mandatory Put Bonds, the rates shown are the current interest rates at the close of the reporting period and the dates shown represent the next mandatory put dates.

The dates shown parenthetically on prerefunded bonds represent the next prerefunding dates.

The dates shown on debt obligations are the original maturity dates.

The fund had the following sector concentrations greater than 10% at the close of the reporting period (as a percentage of net assets (applicable to common shares outstanding)):

Health care  35.4% 
Utilities  17.4 
Transportation  17.3 
Education  12.8 

 

Managed Municipal Income Trust  37 

 



ASC 820 establishes a three-level hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of the fund’s investments. The three levels are defined as follows:

Level 1: Valuations based on quoted prices for identical securities in active markets.

Level 2: Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3: Valuations based on inputs that are unobservable and significant to the fair value measurement.

The following is a summary of the inputs used to value the fund’s net assets as of the close of the reporting period:

    Valuation inputs  

Investments in securities:  Level 1  Level 2  Level 3 

Common stocks*:       

Basic materials  $1,241  $—­  $—­ 

Total common stocks  1,241  —­  —­ 
 
Municipal bonds and notes  —­  567,509,783  13,195 

Preferred stocks  —­  3,657,000  —­ 

Totals by level  $1,241  $571,166,783  $13,195 

 

* Common stock classifications are presented at the sector level, which may differ from the fund’s portfolio presentation.

During the reporting period, transfers within the fair value hierarchy, if any, did not represent, in the aggregate, more than 1% of the fund’s net assets measured as of the end of the period. Transfers are accounted for using the end of period pricing valuation method.

At the start and close of the reporting period, Level 3 investments in securities represented less than 1% of the fund’s net assets and were not considered a significant portion of the fund’s portfolio.

The accompanying notes are an integral part of these financial statements.

38  Managed Municipal Income Trust 

 



Statement of assets and liabilities 4/30/16 (Unaudited)

ASSETS   

Investment in securities, at value (Note 1):   
Unaffiliated issuers (identified cost $520,071,494)  $571,181,219 

Cash  2,916,019 

Interest and other receivables  8,694,078 

Receivable for investments sold  1,325,000 

Prepaid assets  15,536 

Total assets  584,131,852 
 
LIABILITIES   

Payable for purchases of delayed delivery securities (Note 1)  579,955 

Payable for investments purchased  3,739,613 

Payable for compensation of Manager (Note 2)  770,814 

Payable for custodian fees (Note 2)  5,489 

Payable for investor servicing fees (Note 2)  36,428 

Payable for Trustee compensation and expenses (Note 2)  187,788 

Payable for administrative services (Note 2)  1,596 

Payable for floating rate notes issued (Note 1)  13,558,019 

Distributions payable to shareholders  1,952,433 

Distributions payable to preferred shareholders (Note 1)  15,502 

Other accrued expenses  247,010 

Total liabilities  21,094,647 
 

Series A remarketed preferred shares: (245 shares authorized and issued at   
$100,000 per share) (Note 4)  24,500,000 

Series C remarketed preferred shares: (1,980 shares authorized and issued at   
$50,000 per share) (Note 4)  99,000,000 

Net assets  $439,537,205 
 
REPRESENTED BY   

Paid-in capital — common shares (Unlimited shares authorized) (Notes 1 and 5)  $427,777,326 

Distributions in excess of net investment income (Note 1)  (1,145,960) 

Accumulated net realized loss on investments (Note 1)  (38,203,886) 

Net unrealized appreciation of investments  51,109,725 

Total — Representing net assets applicable to common shares outstanding  $439,537,205 
 
COMPUTATION OF NET ASSET VALUE   

Net asset value per common share ($439,537,205 divided by 53,834,820 shares)  $8.16 

 

The accompanying notes are an integral part of these financial statements.

 

Managed Municipal Income Trust  39 

 



Statement of operations Six months ended 4/30/16 (Unaudited)

INTEREST INCOME  $13,663,294 

 
EXPENSES   

Compensation of Manager (Note 2)  $1,513,091 

Investor servicing fees (Note 2)  108,573 

Custodian fees (Note 2)  5,158 

Trustee compensation and expenses (Note 2)  16,788 

Administrative services (Note 2)  7,153 

Interest and fees expense (Note 1)  49,855 

Preferred share remarketing agent fees  93,655 

Other  191,212 

Total expenses  1,985,485 
 
Expense reduction (Note 2)   

Net expenses  1,985,485 
 
Net investment income  11,677,809 

 
Net realized loss on investments (Notes 1 and 3)  (231,249) 

Net unrealized appreciation of investments during the period  10,855,380 

Net gain on investments  10,624,131 
 
Net increase in net assets resulting from operations  $22,301,940 

 
DISTRIBUTIONS TO SERIES A AND C REMARKETED PREFERRED SHAREHOLDERS (NOTE 1):   

From ordinary income   

Taxable net investment income  (8,010) 

From tax exempt net investment income  (274,537) 

Net increase in net assets resulting from operations (applicable to common shareholders)  $22,019,393 

 

The accompanying notes are an integral part of these financial statements.

 

40  Managed Municipal Income Trust 

 



Statement of changes in net assets

INCREASE (DECREASE) IN NET ASSETS  Six months ended 4/30/16*  Year ended 10/31/15 

Operations:     
Net investment income  $11,677,809  $24,669,391 

Net realized gain (loss) on investments  (231,249)  3,624,717 

Net unrealized appreciation (depreciation) of investments  10,855,380  (4,052,999) 

Net increase in net assets resulting from operations  22,301,940  24,241,109 
 
DISTRIBUTIONS TO SERIES A AND C REMARKETED     
PREFERRED SHAREHOLDERS (NOTE 1):     

From ordinary income     
Taxable net investment income  (8,010)  (1,114) 

From tax exempt net investment income  (274,537)  (195,059) 

Net increase in net assets resulting from operations     
(applicable to common shareholders)  22,019,393  24,044,936 
 
DISTRIBUTIONS TO COMMON SHAREHOLDERS (NOTE 1):     

From ordinary income     
Taxable net investment income  (1,024,131)  (212,345) 

From tax exempt net investment income  (10,703,910)  (23,740,657) 

Decrease from capital shares repurchased (Note 5)  (786,170)  (15,936,482) 

Total increase (decrease) in net assets  9,505,182  (15,844,548) 
 
NET ASSETS     

Beginning of period  430,032,023  445,876,571 

End of period (including distributions in excess     
of net investment income of $1,145,960 and     
$813,181, respectively)  $439,537,205  $430,032,023 
 
NUMBER OF FUND SHARES     

Common shares outstanding at beginning of period  53,943,915  56,165,984 

Shares repurchased (Note 5)  (109,095)  (2,222,069) 

Common shares outstanding at end of period  53,834,820  53,943,915 

Remarketed preferred shares outstanding at beginning     
and end of period  2,225  2,225 

 

* Unaudited.

The accompanying notes are an integral part of these financial statements.

Managed Municipal Income Trust  41 

 



Financial highlights (For a common share outstanding throughout the period)

PER-SHARE OPERATING PERFORMANCE           
Six months ended**      Year ended     

  4/30/16  10/31/15  10/31/14  10/31/13  10/31/12  10/31/11 
Net asset value, beginning of period             
(common shares)  $7.97  $7.94  $7.34  $8.10  $7.37  $7.62 
Investment operations:             

Net investment incomea  .22  .45  .45  .47  .48  .51 

Net realized and unrealized             
gain (loss) on investments  .20  (.02)  .59  (.76)  .72  (.23) 

Total from investment operations  .42  .43  1.04  (.29)  1.20  .28 
Distributions to preferred shareholders:             

From net investment income  (.01)  e  e  e  e  e 

Total from investment operations             
(applicable to common shareholders)  .41  .43  1.04  (.29)  1.20  .28 
Distributions to common shareholders:             

From net investment income  (.22)  (.43)  (.46)  (.47)  (.47)  (.53) 

Total distributions  (.22)  (.43)  (.46)  (.47)  (.47)  (.53) 

Increase from shares repurchased  e  .03  .02  e     

Net asset value, end of period             
(common shares)  $8.16  $7.97  $7.94  $7.34  $8.10  $7.37 

Market price, end of period             
(common shares)  $7.77  $7.30  $7.17  $6.70  $8.37  $7.50 

Total return at market price (%)             
(common shares)b  9.54*  8.11  14.18  (14.78)  18.52  4.47 
RATIOS AND SUPPLEMENTAL DATA             
Net assets, end of period             
(common shares) (in thousands)  $439,537  $430,032  $445,877  $421,307  $466,728  $423,921 

Ratio of expenses to average             
net assets (including interest             
expense) (%)c,d,f  .46*  .90  .91  .90  .89  1.03 

Ratio of net investment income             
to average net assets (%)c  2.62*  5.57  5.69  5.91  6.12  7.04 

Portfolio turnover (%)  8*  13  14  15  15  17 

 

42  Managed Municipal Income Trust 

 



Financial highlights (Continued)

* Not annualized.

** Unaudited.

a Per share net investment income has been determined on the basis of the weighted average number of shares outstanding during the period.

b Total return assumes dividend reinvestment.

c Ratios reflect net assets available to common shares only; net investment income ratio also reflects reduction for dividend payments to preferred shareholders.

d Includes amounts paid through expense offset arrangements, if any (Note 2).

e Amount represents less than $0.01 per share.

f Includes interest and fee expense associated with borrowings which amounted to:

  Percentage of 
  average net assets 

April 30,2016  0.01% 

October 31, 2015  0.02 

October 31, 2014  0.02 

October 31, 2013  0.02 

October 31, 2012  0.02 

October 31, 2011  0.01 

 

The accompanying notes are an integral part of these financial statements.

 

Managed Municipal Income Trust  43 

 



Notes to financial statements 4/30/16 (Unaudited)

Within the following Notes to financial statements, references to “State Street” represent State Street Bank and Trust Company, references to “the SEC” represent the Securities and Exchange Commission, references to “Putnam Management” represent Putnam Investment Management, LLC, the fund’s manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC and references to “OTC”, if any, represent over-the-counter. Unless otherwise noted, the “reporting period” represents the period from November 1, 2015 through April 30, 2016.

Putnam Managed Municipal Income Trust (the fund) is a Massachusetts business trust, which is registered under the Investment Company Act of 1940, as amended, as a diversified closed-end management investment company. The goal of the fund is to seek a high level of current income exempt from federal income tax. The fund intends to achieve its objective by investing in a diversified portfolio of tax-exempt municipal securities which Putnam Management believes does not involve undue risk to income or principal. Up to 60% of the fund’s assets may consist of high-yield tax-exempt municipal securities that are below investment grade and involve special risk considerations. The fund’s shares trade on a stock exchange at market prices, which may be lower than the fund’s net asset value. The fund also uses leverage, primarily by issuing preferred shares in an effort to enhance the returns for the common shareholders. The fund also uses leverage which involves risk and may increase the volatility of the fund’s net asset value.

In the normal course of business, the fund enters into contracts that may include agreements to indemnify another party under given circumstances. The fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be, but have not yet been, made against the fund. However, the fund’s management team expects the risk of material loss to be remote.

Note 1: Significant accounting policies

The following is a summary of significant accounting policies consistently followed by the fund in the preparation of its financial statements. The preparation of financial statements is in conformity with accounting principles generally accepted in the United States of America and requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations. Actual results could differ from those estimates. Subsequent events after the Statement of assets and liabilities date through the date that the financial statements were issued have been evaluated in the preparation of the financial statements.

Security valuation Portfolio securities and other investments are valued using policies and procedures adopted by the Board of Trustees. The Trustees have formed a Pricing Committee to oversee the implementation of these procedures and have delegated responsibility for valuing the fund’s assets in accordance with these procedures to Putnam Management. Putnam Management has established an internal Valuation Committee that is responsible for making fair value determinations, evaluating the effectiveness of the pricing policies of the fund and reporting to the Pricing Committee.

Tax-exempt bonds and notes are generally valued on the basis of valuations provided by an independent pricing service approved by the Trustees. Such services use information with respect to transactions in bonds, quotations from bond dealers, market transactions in comparable securities and various relationships between securities in determining value. These securities will generally be categorized as Level 2.

Certain investments, including certain restricted and illiquid securities and derivatives, are also valued at fair value following procedures approved by the Trustees. To assess the continuing appropriateness of fair valuations, the Valuation Committee reviews and affirms the reasonableness of such valuations on a regular basis after considering all relevant information that is reasonably available. Such valuations and procedures are reviewed periodically by the Trustees. These valuations consider such factors as significant market or specific security events such as interest rate or credit quality changes, various relationships with other securities, discount rates, U.S. Treasury, U.S. swap and credit yields, index levels, convexity exposures, recovery rates, sales and other multiples and resale restrictions. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs. The fair value of securities is generally determined as the amount that the fund could reasonably expect to realize from an orderly disposition of such securities over a reasonable period of time. By its nature, a fair value price is a good faith estimate of the value of a security in a current sale and does not reflect an actual market price, which may be different by a material amount.

Security transactions and related investment income Security transactions are recorded on the trade date (the date the order to buy or sell is executed). Gains or losses on securities sold are determined on the identified cost basis.

44  Managed Municipal Income Trust 

 



Interest income is recorded on the accrual basis. All premiums/discounts are amortized/accreted on a yield-to-maturity basis. The premium in excess of the call price, if any, is amortized to the call date; thereafter, any remaining premium is amortized to maturity.

Securities purchased or sold on a delayed delivery basis may be settled at a future date beyond customary settlement time; interest income is accrued based on the terms of the securities. Losses may arise due to changes in the fair value of the underlying securities or if the counterparty does not perform under the contract.

Tender option bond transactions The fund may participate in transactions whereby a fixed-rate bond is transferred to a tender option bond trust (TOB trust) sponsored by a broker. The TOB trust funds the purchase of the fixed rate bonds by issuing floating-rate bonds to third parties and allowing the fund to retain the residual interest in the TOB trust’s assets and cash flows, which are in the form of inverse floating rate bonds. The inverse floating rate bonds held by the fund give the fund the right to (1) cause the holders of the floating rate bonds to tender their notes at par, and (2) to have the fixed-rate bond held by the TOB trust transferred to the fund, causing the TOB trust to collapse. The fund accounts for the transfer of the fixed-rate bond to the TOB trust as a secured borrowing by including the fixed-rate bond in the fund’s portfolio and including the floating rate bond as a liability in the Statement of assets and liabilities. At the close of the reporting period, the fund’s investments with a value of $31,720,699 were held by the TOB trust and served as collateral for $13,558,019 in floating-rate bonds outstanding. For the reporting period ended, the fund incurred interest expense of $7,110 for these investments based on an average interest rate of 0.08%.

Federal taxes It is the policy of the fund to distribute all of its income within the prescribed time period and otherwise comply with the provisions of the Internal Revenue Code of 1986, as amended (the Code), applicable to regulated investment companies. It is also the intention of the fund to distribute an amount sufficient to avoid imposition of any excise tax under Section 4982 of the Code.

The fund is subject to the provisions of Accounting Standards Codification 740 Income Taxes (ASC 740). ASC 740 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The fund did not have a liability to record for any unrecognized tax benefits in the accompanying financial statements. No provision has been made for federal taxes on income, capital gains or unrealized appreciation on securities held nor for excise tax on income and capital gains. Each of the fund’s federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service.

The aggregate identified cost on a tax basis is $519,647,885, resulting in gross unrealized appreciation and depreciation of $57,959,804 and $6,426,470, respectively, or net unrealized appreciation of $51,533,334.

At October 31, 2015, the fund had a capital loss carryover of $38,052,205 available to the extent allowed by the Code to offset future net capital gain, if any. The amounts of the carryovers and the expiration dates are:

Loss carryover 

Short-term  Long-term  Total  Expiration 

$1,328,664  $4,987,661  $6,316,325  * 

11,265,981  N/A  11,265,981  October 31, 2016 

12,490,924  N/A  12,490,924  October 31, 2017 

3,146,619  N/A  3,146,619  October 31, 2018 

4,832,356  N/A  4,832,356  October 31, 2019 

 

* Under the Regulated Investment Company Modernization Act of 2010, the fund will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred will be required to be utilized prior to the losses incurred in pre-enactment tax years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.

Distributions to shareholders Distributions to common and preferred shareholders from net investment income are recorded by the fund on the ex-dividend date. Distributions from capital gains, if any, are recorded on the ex-dividend date and paid at least annually. Dividends on remarketed preferred shares become payable when, as and if declared by the Trustees. Each dividend period for the Series A remarketed preferred shares is generally a 28 day period. The applicable dividend rate for the Series A remarketed preferred shares on April 30, 2016

Managed Municipal Income Trust  45 

 



was 0.561%. Each dividend period for the Series C remarketed preferred shares is generally a 7 day period. The applicable dividend rate for the Series C remarketed preferred shares on April 30, 2016 was 0.561%.

During the reporting period, the fund has experienced unsuccessful remarketings of its remarketed preferred shares. As a result, dividends to the remarketed preferred shares have been paid at the “maximum dividend rate,” pursuant to the fund’s by-laws, which, based on the current credit quality of the remarketed preferred shares, equals 110% of the 60-day “AA” composite commercial paper rate.

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Dividend sources are estimated at the time of declaration. Actual results may vary. Any non-taxable return of capital cannot be determined until final tax calculations are completed after the end of the fund’s fiscal year. Reclassifications are made to the fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryovers) under income tax regulations.

Determination of net asset value Net asset value of the common shares is determined by dividing the value of all assets of the fund, less all liabilities and the liquidation preference (redemption value of preferred shares, plus accumulated and unpaid dividends) of any outstanding remarketed preferred shares, by the total number of common shares outstanding as of period end.

Note 2: Management fee, administrative services and other transactions

The fund pays Putnam Management for management and investment advisory services quarterly based on the average net assets of the fund, including assets attributable to preferred shares. Such fee is based on the following annual rates based on the average weekly net assets attributable to common and preferred shares.

The lesser of (i) 0.550% of average net assets attributable to common and preferred shares outstanding, or (ii) the following rates:

0.650%  of the first $500 million of average  0.425%  of the next $5 billion of average weekly 
  weekly net assets,    net assets, 


0.550%  of the next $500 million of average  0.405%  of the next $5 billion of average weekly 
  weekly net assets,    net assets, 


0.500%  of the next $500 million of average  0.390%  of the next $5 billion of average weekly 
  weekly net assets,    net assets, and 


0.450%  of the next $5 billion of average weekly  0.380%  of any excess thereafter. 
  net assets, 

 

 

If dividends payable on remarketed preferred shares during any dividend payment period plus any expenses attributable to remarketed preferred shares for that period exceed the fund’s gross income attributable to the proceeds of the remarketed preferred shares during that period, then the fee payable to Putnam Management for that period will be reduced by the amount of the excess (but not more than the effective management fees rate under the contract multiplied by the liquidation preference of the remarketed preferred shares outstanding during the period).

Putnam Investments Limited (PIL), an affiliate of Putnam Management, is authorized by the Trustees to manage a separate portion of the assets of the fund as determined by Putnam Management from time to time. PIL did not manage any portion of the assets of the fund during the reporting period. If Putnam Management were to engage the services of PIL, Putnam Management would pay a quarterly sub-management fee to PIL for its services at an annual rate of 0.40% of the average net assets of the portion of the fund managed by PIL.

The fund reimburses Putnam Management an allocated amount for the compensation and related expenses of certain officers of the fund and their staff who provide administrative services to the fund. The aggregate amount of all such reimbursements is determined annually by the Trustees.

Custodial functions for the fund’s assets are provided by State Street. Custody fees are based on the fund’s asset level, the number of its security holdings and transaction volumes.

Putnam Investor Services, Inc., an affiliate of Putnam Management, provides investor servicing agent functions to the fund. Putnam Investor Services, Inc. was paid a monthly fee for investor servicing at an annual rate of 0.05% of the fund’s average daily net assets. The amounts incurred for investor servicing agent functions during the reporting period are included in Investor servicing fees in the Statement of operations.

46  Managed Municipal Income Trust 

 



The fund has entered into expense offset arrangements with Putnam Investor Services, Inc. and State Street whereby Putnam Investor Services, Inc.’s and State Street’s fees are reduced by credits allowed on cash balances. For the reporting period, the fund’s expenses were not reduced under the expense offset arrangements.

Each Independent Trustee of the fund receives an annual Trustee fee, of which $320, as a quarterly retainer, has been allocated to the fund, and an additional fee for each Trustees meeting attended. Trustees also are reimbursed for expenses they incur relating to their services as Trustees.

The fund has adopted a Trustee Fee Deferral Plan (the Deferral Plan) which allows the Trustees to defer the receipt of all or a portion of Trustees fees payable on or after July 1, 1995. The deferred fees remain invested in certain Putnam funds until distribution in accordance with the Deferral Plan.

The fund has adopted an unfunded noncontributory defined benefit pension plan (the Pension Plan) covering all Trustees of the fund who have served as a Trustee for at least five years and were first elected prior to 2004. Benefits under the Pension Plan are equal to 50% of the Trustee’s average annual attendance and retainer fees for the three years ended December 31, 2005. The retirement benefit is payable during a Trustee’s lifetime, beginning the year following retirement, for the number of years of service through December 31, 2006. Pension expense for the fund is included in Trustee compensation and expenses in the Statement of operations. Accrued pension liability is included in Payable for Trustee compensation and expenses in the Statement of assets and liabilities. The Trustees have terminated the Pension Plan with respect to any Trustee first elected after 2003.

Note 3: Purchases and sales of securities

During the reporting period, the cost of purchases and the proceeds from sales, excluding short-term investments, were as follows:

  Cost of purchases  Proceeds from sales 

Investments in securities (Long-term)  $50,188,935  $44,016,770 

U.S. government securities (Long-term)     

Total  $50,188,935  $44,016,770 

 

The fund may purchase or sell investments from or to other Putnam funds in the ordinary course of business, which can reduce the fund’s transaction costs, at prices determined in accordance with SEC requirements and policies approved by the Trustees. During the reporting period, purchases or sales from or to other Putnam funds, if any, did not represent more than 5% of the fund’s total cost of purchases and/or total proceeds from sales.

Note 4: Preferred shares

The Series A (245) and C (1,980) Remarketed Preferred shares are redeemable at the option of the fund on any dividend payment date at a redemption price of $100,000 per Series A Remarketed Preferred share and $50,000 per Series C Remarketed Preferred share, plus an amount equal to any dividends accumulated on a daily basis but unpaid through the redemption date (whether or not such dividends have been declared) and, in certain circumstances, a call premium.

It is anticipated that dividends paid to holders of remarketed preferred shares will be considered tax-exempt dividends under the Internal Revenue Code of 1986. To the extent that the fund earns taxable income and capital gains by the conclusion of a fiscal year, it may be required to apportion to the holders of the remarketed preferred shares throughout that year additional dividends as necessary to result in an after-tax equivalent to the applicable dividend rate for the period.

Under the Investment Company Act of 1940, the fund is required to maintain asset coverage of at least 200% with respect to the remarketed preferred shares. Additionally, the fund’s bylaws impose more stringent asset coverage requirements and restrictions relating to the rating of the remarketed preferred shares by the shares’ rating agencies. Should these requirements not be met, or should dividends accrued on the remarketed preferred shares not be paid, the fund may be restricted in its ability to declare dividends to common shareholders or may be required to redeem certain of the remarketed preferred shares. At period end, no such restrictions have been placed on the fund.

Managed Municipal Income Trust  47 

 



Note 5: Shares repurchased

In September 2015, the Trustees approved the renewal of the repurchase program to allow the fund to repurchase up to 10% of its outstanding common shares over the 12-month period ending October 7, 2016 (based on shares outstanding as of October 7, 2015). Prior to this renewal, the Trustees had approved a repurchase program to allow the fund to repurchase up to 10% of its outstanding common shares over the 12-month period ending October 7, 2015 (based on shares outstanding as of October 7, 2014). Repurchases are made when the fund’s shares are trading at less than net asset value and in accordance with procedures approved by the fund’s Trustees.

For the reporting period, the fund repurchased 109,095 common shares for an aggregate purchase price of $786,170, which reflects a weighted-average discount from net asset value per share of 9.86%. The weighted-average discount reflects the payment of commissions by the fund to execute repurchase trades.

At the close of the reporting period, Putnam Investments, LLC owned approximately 1,116 shares of the fund (0.002% of the fund’s shares outstanding), valued at $9,107 based on net asset value.

Note 6: Market, credit and other risks

In the normal course of business, the fund trades financial instruments and enters into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the contracting party to the transaction to perform (credit risk). The fund may be exposed to additional credit risk that an institution or other entity with which the fund has unsettled or open transactions will default.

48  Managed Municipal Income Trust 

 



Shareholder meeting results (Unaudited)

April 29, 2016 annual meeting

At the meeting, a proposal to fix the number of Trustees at 13 was approved as follows:

Votes for  Votes against  Abstentions 

44,578,033  1,861,493  821,130 

 

At the meeting, each of the nominees for Trustees was elected as follows:

 

  Votes for  Votes withheld 

Liaquat Ahamed  45,601,826  1,658,839 

Ravi Akhoury  45,559,106  1,701,559 

Barbara M. Baumann  45,755,968  1,504,697 

Jameson A. Baxter  45,682,208  1,578,457 

Robert J. Darretta  45,778,795  1,481,871 

Katinka Domotorffy  45,653,374  1,607,292 

Paul L. Joskow  45,805,821  1,454,845 

Kenneth R. Leibler  45,758,010  1,502,655 

George Putnam, III  45,631,599  1,609,067 

Robert L. Reynolds  45,782,955  1,477,711 

W. Thomas Stephens  45,685,309  1,575,356 

 

A quorum was not present with respect to the matter of electing two Trustees to be voted on by the preferred shareholders voting as a separate class. As a result, in accordance with the fund’s Declaration of Trust and Bylaws, independent Trustees John A. Hill and Robert E. Patterson remain in office and continue to serve as Trustees.

All tabulations are rounded to the nearest whole number.

Managed Municipal Income Trust  49 

 



Putnam family of funds

The following is a list of Putnam’s open-end mutual funds offered to the public. Investors should carefully consider the investment objective, risks, charges, and expenses of a fund before investing. For a prospectus, or a summary prospectus if available, containing this and other information for any Putnam fund or product, contact your financial advisor or call Putnam Investor Services at 1-800-225-1581. Please read the prospectus carefully before investing.

Growth  International Value Fund 
Growth Opportunities Fund  Multi-Cap Value Fund 
International Growth Fund  Small Cap Value Fund 
Multi-Cap Growth Fund 
Small Cap Growth Fund  Income 
Voyager Fund  American Government Income Fund 
Diversified Income Trust 
Blend  Emerging Markets Income Fund 
Asia Pacific Equity Fund  Floating Rate Income Fund 
Capital Opportunities Fund  Global Income Trust 
Capital Spectrum Fund  Government Money Market Fund* 
Emerging Markets Equity Fund  High Yield Advantage Fund 
Equity Spectrum Fund  High Yield Trust 
Europe Equity Fund  Income Fund 
Global Equity Fund  Money Market Fund* 
International Capital Opportunities Fund  Short Duration Income Fund 
International Equity Fund  U.S. Government Income Trust 
Investors Fund 
Low Volatility Equity Fund  Tax-free Income 
Multi-Cap Core Fund  AMT-Free Municipal Fund 
Research Fund  Intermediate-Term Municipal Income Fund 
Strategic Volatility Equity Fund  Short-Term Municipal Income Fund 
Tax Exempt Income Fund 
Value  Tax-Free High Yield Fund 
Convertible Securities Fund 
Equity Income Fund  State tax-free income funds†: 
Global Dividend Fund  Arizona, California, Massachusetts, Michigan, 
The Putnam Fund for Growth and Income  Minnesota, New Jersey, New York, Ohio, 
and Pennsylvania. 

 

50  Managed Municipal Income Trust 

 



Absolute Return  Retirement Income Lifestyle Funds  
Absolute Return 100 Fund®  portfolios with managed allocations to 
Absolute Return 300 Fund®  stocks, bonds, and money market 
Absolute Return 500 Fund®  investments to generate retirement income. 
Absolute Return 700 Fund® 
Retirement Income Fund Lifestyle 1 
Global Sector  Retirement Income Fund Lifestyle 2 
Global Consumer Fund  Retirement Income Fund Lifestyle 3 
Global Energy Fund 
Global Financials Fund  RetirementReady® Funds — portfolios with 
Global Health Care Fund  adjusting allocations to stocks, bonds, and 
Global Industrials Fund  money market instruments, becoming more 
Global Natural Resources Fund  conservative over time. 
Global Sector Fund 
Global Technology Fund  RetirementReady® 2060 Fund 
Global Telecommunications Fund  RetirementReady® 2055 Fund 
Global Utilities Fund  RetirementReady® 2050 Fund 
  RetirementReady® 2045 Fund 
Asset Allocation  RetirementReady® 2040 Fund 
George Putnam Balanced Fund  RetirementReady® 2035 Fund 
RetirementReady® 2030 Fund 
Global Asset Allocation Funds — four  RetirementReady® 2025 Fund 
investment portfolios that spread your  RetirementReady® 2020 Fund 
money across a variety of stocks, bonds, and   
money market instruments.   
 
Dynamic Asset Allocation Balanced Fund   
Dynamic Asset Allocation Conservative Fund   
Dynamic Asset Allocation Growth Fund   
Dynamic Risk Allocation Fund   

 

* An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.

† Not available in all states.

Check your account balances and the most recent month-end performance in the Individual Investors section at putnam.com.

Managed Municipal Income Trust  51 

 



Putnam’s commitment to confidentiality

In order to conduct business with our shareholders, we must obtain certain personal information such as account holders’ names, addresses, Social Security numbers, and dates of birth. Using this information, we are able to maintain accurate records of accounts and transactions.

It is our policy to protect the confidentiality of our shareholder information, whether or not a shareholder currently owns shares of our funds. In particular, it is our policy not to sell information about you or your accounts to outside marketing firms. We have safeguards in place designed to prevent unauthorized access to our computer systems and procedures to protect personal information from unauthorized use.

Within the Putnam organization, your information is shared with those who need it to service your account or provide you with information about other Putnam products or services. Under certain circumstances, we must also share account information with outside vendors who provide services to us, such as mailings and proxy solicitations. In these cases, the service providers enter into confidentiality agreements with us, and we provide only the information necessary to process transactions and perform other services related to your account. It is also our policy to share account information with your financial advisor, if you've provided us with information about your advisor and that person is listed on your Putnam account.

If you would like clarification about our confidentiality policies or have any questions or concerns, please don't hesitate to contact us at 1-800-225-1581, Monday through Friday, 8:00 a.m. to 8:00 p.m. Eastern Time.

52  Managed Municipal Income Trust 

 



Fund information

Founded over 75 years ago, Putnam Investments was built around the concept that a balance between risk and reward is the hallmark of a well-rounded financial program. We manage over 100 funds across income, value, blend, growth, asset allocation, absolute return, and global sector categories.

Investment Manager  Trustees  Robert T. Burns 
Putnam Investment  Jameson A. Baxter, Chair  Vice President and 
Management, LLC  Liaquat Ahamed  Chief Legal Officer 
One Post Office Square  Ravi Akhoury 
Boston, MA 02109  Barbara M. Baumann  James F. Clark 
  Robert J. Darretta  Chief Compliance Officer 
Investment Sub-Manager  Katinka Domotorffy 
Putnam Investments Limited  John A. Hill  Michael J. Higgins 
57–59 St James’s Street  Paul L. Joskow  Vice President, Treasurer, 
London, England SW1A 1LD  Kenneth R. Leibler  and Clerk 
  Robert E. Patterson 
Marketing Services  George Putnam, III  Janet C. Smith 
Putnam Retail Management  Robert L. Reynolds  Vice President, 
One Post Office Square  W. Thomas Stephens  Principal Accounting Officer, 
Boston, MA 02109  and Assistant Treasurer 
  Officers 
Custodian  Robert L. Reynolds  Susan G. Malloy 
State Street Bank  President  Vice President and 
and Trust Company  Assistant Treasurer 
  Jonathan S. Horwitz 
Legal Counsel  Executive Vice President,  James P. Pappas 
Ropes & Gray LLP  Principal Executive Officer, and  Vice President 
  Compliance Liaison 
  Mark C. Trenchard 
  Steven D. Krichmar  Vice President and 
  Vice President and  BSA Compliance Officer 
  Principal Financial Officer 
Nancy E. Florek 
  Vice President, Director of 
    Proxy Voting and Corporate 
    Governance, Assistant Clerk, 
    and Associate Treasurer 

 

Call 1-800-225-1581 Monday through Friday between 8:00 a.m. and 8:00 p.m. Eastern Time, or visit putnam.com anytime for up-to-date information about the fund’s NAV.




Item 2. Code of Ethics:
Not Applicable
Item 3. Audit Committee Financial Expert:
Not Applicable
Item 4. Principal Accountant Fees and Services:
Not Applicable
Item 5. Audit Committee
Not Applicable
Item 6. Schedule of Investments:
The registrant's schedule of investments in unaffiliated issuers is included in the report to shareholders in Item 1 above.

Item 7. Disclosure of Proxy Voting Policies and Procedures For Closed-End Management Investment Companies:

Not applicable
Item 8. Portfolio Managers of Closed-End Management Investment Companies

(a) Not applicable
(b) During the period, Susan McCormack was removed as a Portfolio Manager for the fund.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers:


Registrant Purchase of Equity Securities
Maximum
Total Number Number (or
of Shares Approximate
Purchased Dollar Value)
as Part of Shares
of Publicly that May Yet Be
Total Number Average Announced Purchased
of Shares Price Paid Plans or under the Plans
Period Purchased per Share Programs* or Programs**

November 1 — November 30, 2015 31,483 $7.20 31,483 5,343,667
December 1 — December 31, 2015 77,612 $7.21 77,612 5,266,055
January 1 — January 31, 2016 5,266,055
February 1 — February 28, 2016 5,266,055
March 1 — March 31, 2016 5,266,055
April 1 — April 30, 2016 5,266,055


*   In October 2005, the Board of Trustees of the Putnam Funds initiated the closed-end fund share repurchase program, which, as subsequently amended, authorized the fund to repurchase of up to 10% of its fund's outstanding common shares over the two-years ending October 5, 2007. The Trustees have subsequently renewed the program on an annual basis. The program renewed by the Board in September 2014, which was in effect between October 8, 2014 and October 7, 2015, allowed the fund to repurchase up to 5,647,749 of its shares. The program renewed by the Board in September 2015, which is in effect between October 8, 2015 and October 7, 2016, allows the fund to repurchase up to 5,396,529 of its shares.

**  

Information prior to October 7, 2015 is based on the total number of shares eligible for repurchase under the program, as amended through September 2014. Information from October 8, 2015 forward is based on the total number of shares eligible for repurchase under the program, as amended through September 2015.

Item 10. Submission of Matters to a Vote of Security Holders:
Not applicable
Item 11. Controls and Procedures:
(a) The registrant's principal executive officer and principal financial officer have concluded, based on their evaluation of the effectiveness of the design and operation of the registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the design and operation of such procedures are generally effective to provide reasonable assurance that information required to be disclosed by the registrant in this report is recorded, processed, summarized and reported within the time periods specified in the Commission's rules and forms.

(b) Changes in internal control over financial reporting: Not applicable
Item 12. Exhibits:
(a)(1) Not applicable
(a)(2) Separate certifications for the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are filed herewith.

(b) The certifications required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended, are filed herewith.

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.

Putnam Managed Municipal Income Trust
By (Signature and Title):
/s/ Janet C. Smith
Janet C. Smith
Principal Accounting Officer

Date: June 28, 2016
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):
/s/ Jonathan S. Horwitz
Jonathan S. Horwitz
Principal Executive Officer

Date: June 28, 2016
By (Signature and Title):
/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer

Date: June 28, 2016