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
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Message from the Trustees | 1 | ||
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About the fund | 2 | ||
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Performance snapshot | 4 | ||
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Interview with your fund’s portfolio manager | 5 | ||
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Your fund’s performance | 10 | ||
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Terms and definitions | 12 | ||
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Other information for shareholders | 13 | ||
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Summary of dividend reinvestment plans | 14 | ||
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Financial statements | 16 | ||
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Shareholder meeting results | 49 | ||
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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.
4 | 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* | |
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Annual average | ||||
(life of fund) (2/24/89) | 6.72% | 6.33% | 6.17% | 5.99% |
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10 years | 82.64 | 103.98 | 62.02 | 84.64 |
Annual average | 6.21 | 7.39 | 4.94 | 6.30 |
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5 years | 56.79 | 54.37 | 29.90 | 61.63 |
Annual average | 9.41 | 9.07 | 5.37 | 10.04 |
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3 years | 19.70 | 17.88 | 10.90 | 18.46 |
Annual average | 6.18 | 5.64 | 3.51 | 5.80 |
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1 year | 7.30 | 12.30 | 5.29 | 7.73 |
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6 months | 5.18 | 9.54 | 3.55 | 5.31 |
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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 | ||||||
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Number | 6 | |||||
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Income 1 | $0.2178 | |||||
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Capital gains 2 | — | |||||
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Total | $0.2178 | |||||
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Series A | Series C | |||||
Distributions — preferred shares | (245 shares) | (1,980 shares) | ||||
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Income 1 | $227.73 | $114.52 | ||||
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Capital gains 2 | — | — | ||||
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Total | $227.73 | $114.52 | ||||
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Share value — common shares | NAV | Market price | ||||
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10/31/15 | $7.97 | $7.30 | ||||
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4/30/16 | 8.16 | 7.77 | ||||
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Current dividend rate (end of period) | NAV | Market price | ||||
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Current dividend rate 3 | 5.34% | 5.61% | ||||
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Taxable equivalent 4 | 9.43 | 9.91 | ||||
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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 | |
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Annual average | ||
(life of fund) (2/24/89) | 6.71% | 6.27% |
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10 years | 81.25 | 96.22 |
Annual average | 6.13 | 6.97 |
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5 years | 57.67 | 51.79 |
Annual average | 9.53 | 8.70 |
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3 years | 19.75 | 17.12 |
Annual average | 6.19 | 5.41 |
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1 year | 6.12 | 9.86 |
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6 months | 5.21 | 10.15 |
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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 |
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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 |
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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 |
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Lower AL Gas Dist. Rev. Bonds (Gas Project), | |||
Ser. A, 5s, 9/1/46 | A3 | 1,450,000 | 1,847,982 |
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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 |
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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 |
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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 |