UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

_______________________________

Investment Company Act file number 811-05655

DWS Municipal Income Trust

(Exact name of registrant as specified in charter)

 

345 Park Avenue

New York, NY 10154-0004

(Address of principal executive offices)             (Zip code)

 

Paul Schubert

345 Park Avenue

New York, NY 10154-0004

(Name and address of agent for service)

Registrant's telephone number, including area code: (212) 454-7190

Date of fiscal year end: 11/30

Date of reporting period: 02/29/08

 

ITEM 1. SCHEDULE OF INVESTMENTS

 

Investment Portfolio

as of February 29, 2008 (Unaudited)

 

 

DWS Municipal Income Trust

 

 

Principal
Amount ($)

 

Value ($)

 

Municipal Bonds and Notes 154.3%

 

Alabama 3.7%

 

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

 

1,000,000

 

1,020,340

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

 

5,500,000

 

5,960,405

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

 

8,560,000

 

9,041,158

 

16,021,903

Arizona 2.3%

 

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

 

7,000,000

 

7,629,790

Arizona, Salt Verde Financial Corp., Gas Revenue, 5.5%, 12/1/2029

 

2,400,000

 

2,179,296

 

9,809,086

 

 


 

 

California 20.8%

 

California, Health Facilities Financing Authority Revenue, Sutter Health, Series A, 5.0%, 11/15/2042

 

2,000,000

 

1,778,140

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

 

 

Series A-1, 5.0%, 6/1/2033

 

7,000,000

 

5,795,160

 

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

 

2,500,000

 

2,302,750

 

Series B, 5.625%, 6/1/2038

 

7,080,000

 

7,679,322

 

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

 

11,730,000

 

13,345,690

California, State General Obligation:

 

 

4.5%, 10/1/2029

 

15,000,000

 

13,290,600

 

Series 2, 5.0%, 9/1/2019

 

4,385,000

 

4,424,421

 

5.0%, 12/1/2020

 

4,600,000

 

4,595,768

 

5.0%, 11/1/2027

 

3,000,000

 

2,858,940

 

5.0%, 6/1/2028

 

3,000,000

 

2,863,710

 

5.125%, 4/1/2024

 

4,400,000

 

4,252,424

 

5.25%, 12/1/2021

 

10,215,000

 

10,274,145

 

5.25%, 4/1/2030

 

110,000

 

106,502

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

 

2,500,000

 

2,568,675

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

 

5,000,000

 

5,147,600

Long Beach, CA, Bond Finance Authority, Natural Gas Purchased Revenue, Series A, 5.5%, 11/15/2030

 

5,000,000

 

4,581,750

Los Angeles County, CA, Multi-Family Mortgage Revenue, Valencia Housing Project, Series C, 2.65% *, 4/1/2031

 

1,000,000

 

1,000,000

Northern California, Tobacco Securitization Authority, Tobacco Settlement Revenue, Series A-1, 5.375%, 6/1/2038

 

3,000,000

 

2,562,390

Southern California, Public Power Authority, Natural Gas Project Revenue, Project No. 1, Series A, 5.25%, 11/1/2026

 

1,155,000

 

1,073,088

 

90,501,075

Colorado 4.9%

 

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

 

1,000,000

 

1,122,130

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

 

 

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

 

6,145,000

 

6,483,897

 

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

 

5,705,000

 

6,068,123

 

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

 

2,000,000

 

2,127,300

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

 

205,000

 

218,188

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

 

5,000,000

 

5,233,200

 

21,252,838

District of Columbia 8.7%

 

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

 

640,000

 

664,563

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

 

20,000,000

 

21,447,000

District of Columbia, General Obligation:

 

 

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

 

2,585,000

 

2,628,971

 

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

 

8,245,000

 

8,256,461

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

 

2,810,000

 

2,763,579

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

 

1,860,000

 

1,927,406

 

37,687,980

Florida 4.4%

 

Dade County, FL, Special Assessment Revenue:

 

 

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

 

7,735,000

 

3,260,535

 

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

 

16,955,000

 

6,294,883

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

 

1,000,000

 

939,530

 

 


 

 

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

 

 

6.0%, 7/1/2013 (a)

 

1,665,000

 

1,772,576

 

6.0%, 7/1/2014 (a)

 

1,000,000

 

1,064,610

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

 

1,000,000

 

1,097,590

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

 

2,850,000

 

3,060,871

South Miami, FL, Health Facilities Authority Hospital Revenue, Baptist Health South Florida Group, 5.0%, 8/15/2032

 

2,000,000

 

1,823,820

 

19,314,415

Georgia 3.5%

 

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

 

4,000,000

 

3,946,320

Georgia, Main Street Natural Gas, Inc., Gas Project Revenue:

 

 

Series A, 5.0%, 3/15/2022

 

7,340,000

 

6,854,459

 

Series A, 5.5%, 9/15/2027

 

5,000,000

 

4,351,300

 

15,152,079

Hawaii 4.7%

 

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

 

8,800,000

 

9,289,368

Hawaii, Electric Revenue, Department of Budget & Finance, AMT, Series D, 6.15%, 1/1/2020 (a)

 

2,195,000

 

2,223,250

Hawaii, Port Authority Revenue, AMT:

 

 

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

 

2,950,000

 

3,142,664

 

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

 

3,135,000

 

3,336,079

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

 

2,310,000

 

2,433,169

 

20,424,530

Idaho 0.0%

 

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

 

50,000

 

50,039

Illinois 8.8%

 

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

 

10,000,000

 

10,364,800

Chicago, IL, Core City General Obligation:

 

 

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

 

2,085,000

 

2,248,318

 

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

 

2,000,000

 

2,162,260

 

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

 

2,000,000

 

2,162,260

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

 

 

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

 

1,000,000

 

1,078,330

 

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

 

1,000,000

 

1,078,330

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

 

3,615,000

 

3,635,714

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

 

2,500,000

 

2,632,275

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

 

4,000,000

 

4,199,320

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

 

 

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

 

2,695,000

 

2,896,586

 

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

 

1,710,000

 

1,837,908

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

 

 

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

 

1,955,000

 

2,174,234

 

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

 

1,555,000

 

1,691,280

 

38,161,615

Indiana 1.2%

 

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

 

5,000,000

 

5,440,600

Kansas 0.8%

 

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

 

3,000,000

 

3,355,950

 

 


 

 

Kentucky 1.5%

 

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

 

 

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

 

790,000

 

865,358

 

Series A, 6.5%, 10/1/2020

 

1,210,000

 

1,247,256

 

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

 

3,130,000

 

3,438,242

 

Series A, 6.625%, 10/1/2028

 

870,000

 

913,700

 

6,464,556

Louisiana 0.5%

 

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

 

2,000,000

 

2,195,800

Maine 1.5%

 

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

 

375,000

 

375,799

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

 

6,165,000

 

6,259,078

 

6,634,877

Maryland 0.9%

 

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

 

2,500,000

 

2,737,300

Maryland, State Health & Higher Educational Facilities Authority Revenue, Washington County Hospital, 5.75%, 1/1/2033

 

1,500,000

 

1,365,540

 

4,102,840

Massachusetts 3.7%

 

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

 

8,000,000

 

8,250,640

Massachusetts, Airport Revenue, U.S. Airways, Inc. Project, AMT, Series A, 5.875%, 9/1/2023 (a)

 

5,000,000

 

5,000,000

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

 

3,000,000

 

3,072,930

 

16,323,570

Michigan 2.3%

 

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

 

1,500,000

 

1,457,685

Michigan, Industrial Development Revenue:

 

 

5.5%, 6/1/2018 (a)

 

3,425,000

 

3,593,784

 

5.75%, 6/1/2016 (a)

 

4,640,000

 

4,893,669

 

9,945,138

Minnesota 1.6%

 

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

 

4,395,000

 

4,624,375

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

 

2,500,000

 

2,545,375

 

7,169,750

Missouri 0.1%

 

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

 

365,000

 

365,234

Nevada 4.0%

 

Henderson, NV, Health Care Facility Revenue, Catholic Healthcare West, Series B, 5.25%, 7/1/2031

 

10,000,000

 

9,228,600

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

 

2,575,000

 

2,664,996

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

 

5,450,000

 

5,724,735

 

17,618,331

New Jersey 10.9%

 

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

 

1,090,000

 

1,004,184

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

 

5,000,000

 

5,920,700

 

 


 

 

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

 

10,775,000

 

10,945,137

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

 

1,400,000

 

1,284,514

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

 

2,025,000

 

2,189,349

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

 

10,000,000

 

10,632,300

New Jersey, Tobacco Settlement Financing Corp., Series 1-A, 5.0%, 6/1/2041

 

1,000,000

 

800,040

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

 

6,000,000

 

6,204,000

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

 

8,000,000

 

8,469,280

 

47,449,504

New York 10.7%

 

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

 

3,390,000

 

3,603,570

Nassau County, NY, Industrial Development Agency Revenue, Continuing Care Retirement, Amsterdam at Harborside, Series C, 2.95% *, 1/1/2028, LaSalle Bank NA (b)

 

1,000,000

 

1,000,000

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

 

1,500,000

 

1,629,840

New York, State General Obligation, Tobacco Settlement Financing Corp., Series A-1, 5.25%, 6/1/2022 (a)

 

10,000,000

 

10,141,200

New York, State Housing Finance Agency Revenue, 316 Eleventh Ave. Housing, Series A, AMT, 2.82% *, 5/15/2041

 

3,000,000

 

3,000,000

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

 

5,500,000

 

5,741,395

New York, Transportation/Tolls Revenue:

 

 

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

 

5,000,000

 

5,201,850

 

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

 

2,000,000

 

2,083,400

New York, NY, General Obligation, Series D, 5.0%, 11/1/2024

 

7,500,000

 

7,268,550

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

 

 

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

 

1,645,000

 

1,773,178

 

Series B, 6.125%, 11/15/2014

 

355,000

 

382,662

 

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

 

3,000,000

 

3,233,100

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

 

1,180,000

 

1,310,886

 

46,369,631

North Carolina 1.8%

 

Charlotte, NC, Airport Revenue, AMT:

 

 

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

 

2,480,000

 

2,566,651

 

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

 

1,140,000

 

1,181,975

North Carolina, Electric Revenue, Municipal Power Agency:

 

 

Series C, 5.375%, 1/1/2017

 

1,000,000

 

1,023,200

 

Series B, 6.375%, 1/1/2013

 

3,000,000

 

3,176,700

 

7,948,526

North Dakota 0.9%

 

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

 

3,400,000

 

3,752,070

Ohio 3.2%

 

Buckeye, OH, Tobacco Settlement Financing Authority, Series A-2, 5.875%, 6/1/2030

 

8,820,000

 

8,253,668

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

 

6,000,000

 

5,494,560

 

13,748,228

Oregon 2.5%

 

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

 

1,000,000

 

1,079,490

 

 


 

 

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

 

1,000,000

 

1,079,490

Portland, OR, Special Assessment Revenue, Downtown Waterfront:

 

 

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

 

3,100,000

 

3,265,447

 

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

 

2,225,000

 

2,342,502

 

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

 

2,820,000

 

2,968,924

 

10,735,853

Pennsylvania 1.7%

 

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

 

2,570,000

 

2,693,437

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

 

5,000,000

 

4,759,600

 

7,453,037

Puerto Rico 0.2%

 

Commonwealth of Puerto Rico, Public Improvement:

 

 

Prerefunded, Series A, 5.25%, 7/1/2030

 

620,000

 

678,832

 

Series A, 5.25%, 7/1/2030

 

380,000

 

352,636

 

1,031,468

Rhode Island 0.9%

 

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

 

4,000,000

 

3,859,680

South Carolina 3.5%

 

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

 

1,500,000

 

1,435,050

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

 

 

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

 

4,825,000

 

5,647,855

 

Series C, 7.0%, 8/1/2030

 

595,000

 

694,877

 

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

 

2,000,000

 

2,266,480

South Carolina, Tobacco Settlement Revenue Management Authority:

 

 

Series B, 6.0%, 5/15/2022

 

2,000,000

 

2,000,520

 

Series B, 6.375%, 5/15/2030

 

3,085,000

 

2,976,470

 

15,021,252

South Dakota 0.3%

 

South Dakota, State Health & Educational Facilities Authority Revenue, Sanford Health, 5.0%, 11/1/2027

 

1,500,000

 

1,355,280

Tennessee 4.9%

 

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

 

2,000,000

 

1,747,780

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

 

4,690,000

 

4,850,023

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

 

 

EMT, 6.5%, 9/1/2026

 

2,615,000

 

2,957,068

 

Prerefunded, 6.5%, 9/1/2026

 

4,385,000

 

4,958,602

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

 

7,000,000

 

6,824,860

 

21,338,333

Texas 19.1%

 

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

 

 

6.0%, 11/15/2013 (a)

 

3,190,000

 

3,360,346

 

6.0%, 11/15/2015 (a)

 

3,480,000

 

3,665,832

 

6.0%, 11/15/2016 (a)

 

3,625,000

 

3,818,575

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

 

3,965,000

 

3,748,392

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

 

6,500,000

 

6,732,830

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

 

5,500,000

 

6,065,675

 

 


 

 

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

 

3,300,000

 

3,302,673

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

 

3,960,000

 

4,156,495

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

 

5,390,000

 

5,704,668

Tarrant County, TX, Cultural Educational Facilities Finance Corp. Revenue, Texas Health Resources, Series A, 5.0%, 2/15/2026

 

4,000,000

 

3,691,920

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

 

4,500,000

 

4,969,170

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

 

2,000,000

 

1,932,560

Texas, Municipal Gas Acquisition & Supply Corp I, Gas Supply Revenue, Series B, 3.894% **, 12/15/2017

 

10,000,000

 

8,317,500

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

 

4,015,000

 

3,890,455

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

 

14,605,000

 

14,922,805

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

 

5,035,000

 

5,014,658

 

83,294,554

Virginia 0.2%

 

Virginia, Tobacco Settlement Financing Corp., Series B-1, 5.0%, 6/1/2047

 

1,200,000

 

949,632

Washington 6.8%

 

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

 

7,355,000

 

7,980,469

Seattle, WA, Special Assessment Revenue, AMT:

 

 

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

 

1,085,000

 

1,128,216

 

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

 

1,045,000

 

1,091,408

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

 

1,570,000

 

1,677,357

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

 

3,000,000

 

3,160,680

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

 

3,000,000

 

3,238,500

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

 

1,500,000

 

1,538,985

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

 

4,835,000

 

5,007,464

Washington, State Health Care Facilities Authority Revenue, Series C, 5.375%, 8/15/2028 (a)

 

5,240,000

 

4,868,484

 

29,691,563

West Virginia 4.7%

 

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

 

 

Series A, 6.75%, 9/1/2022

 

2,355,000

 

2,577,218

 

6.75%, 9/1/2030

 

395,000

 

432,272

West Virginia, Hospital Finance Authority, Charleston Medical Center:

 

 

Prerefunded, 6.75%, 9/1/2022

 

9,645,000

 

10,555,102

 

Prerefunded, 6.75%, 9/1/2030

 

3,605,000

 

3,945,168

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

 

2,740,000

 

2,778,250

 

20,288,010

Wisconsin 2.1%

 

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

 

3,930,000

 

3,931,729

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

 

6,000,000

 

5,424,480

 

9,356,209

Total Municipal Bonds and Notes (Cost $652,516,191)

 

671,635,036

 

Municipal Inverse Floating Rate Notes 18.5%

 

Arizona 2.6%

 

Phoenix, AZ, Industrial Development Authority, Single Family Mortgage Revenue, AMT, Series 2007-3, 5.625%, 5/1/2039 (c)

 

11,250,000

 

11,193,419

 

 


 

 

 

Trust: Arizona, Puttable Floating Option, Tax Exempt Receipts, RITES-PA-1509, AMT,

144A, 12.292%, 5/1/2039, Leverage Factor at purchase date: 4 to 1

 

 

 

 

California 6.7%

 

California, San Francisco Bay Area Toll Authority, Toll Bridge Revenue, Series F, 5.0%, 4/1/2031 (c)

 

10,000,000

 

9,641,450

 

Trust: California, Bay Area Toll Authority, Toll Bridge Revenue, Series 1962-5, 144A,

9.23%, 4/1/2031, Leverage Factor at purchase date: 4 to 1

 

 

 

 

San Jose, CA, Redevelopment Agency Tax Allocation, Merged Area Redevelopment Project, Series C, 5.0%, 8/1/2025 (a) (c)

 

10,000,000

 

9,480,300

 

Trust: California, Puttable Floating Option, Tax Exempt Receipts, RITES-PA-1505, 144A, 2.15%, 8/1/2025, Leverage Factor at purchase date: 4 to 1

 

 

 

 

California, State General Obligation, 5.0%, 6/1/2023 (a) (c)

 

10,000000

 

10,003,350

 

Trust: California, State General Obligation, Series 1932, 144A, 9.23%, 6/1/2023,

Leverage Factor at purchase date: 4 to 1

 

 

 

 

 

29,125,100

Illinois 3.9%

 

Chicago, IL, General Obligation, Series A, 5.0%, 1/1/2024 (a) (c)

 

10,360,000

 

10,035,188

 

Trust: Chicago, IL, UBS Municipal (CRVS), Various States, 144A, 2.96%, 1/1/2024,

Leverage Factor at purchase date: 4 to 1

 

 

 

 

Aurora, IL, Single Family Mortgage Revenue, AMT, Series C, 5.5%, 6/1/2045 (c)

 

6,940,000

 

6,921,085

 

Trust: Illinois, Puttable Floating Option, Tax Exempt Receipts, RITES-PA-1499, 144A,

AMT, 11.26%, 6/1/2045, Leverage Factor at purchase date: 4 to 1

 

 

 

 

 

16,956,273

New York 5.3%

 

New York, State Dormitory Authority Revenues, State Supported Debt, University Dormitory Facilities, 5.0%, 7/1/2025 (c)

 

5,425,000

 

5,325,975

 

Trust: New York, State Dormitory Authority Revenues, Secondary Issues, Series 1971-1,

144A, 10.039%, 7/1/2025, Leverage Factor at purchase date: 4 to 1

 

 

 

 

New York, State Dormitory Authority Revenues, State Supported Debt, University Dormitory Facilities, 5.0%, 7/1/2027 (c)

 

8,080,000

 

7,864,668

 

Trust: New York, State Dormitory Authority Revenues, Secondary Issues, Series 1971-2,

144A, 10.04%, 7/1/2027, Leverage Factor at purchase date: 4 to 1

 

 

 

 

New York, State Dormitory Authority, State Personal Income Tax Revenue, Series A, 5.0%, 3/15/2024 (c)

 

10,000,000

 

10,012,350

 

Trust: New York, State Dormitory Authority Revenues, Secondary Issues, Series 1955-3,

144A, 9.23%, 3/15/2024,Leverage Factor at purchase date: 4 to 1

 

 

 

 

 

23,202,993

Total Municipal Inverse Floating Rate Notes (Cost $85,500,599)

 

80,477,785

 

% of
Net Assets

 

Value ($)

Total Investment Portfolio (Cost $738,016,790) †

172.8

 

752,112,821

Other Assets and Liabilities, Net

(11.9)

 

(51,797,088)

Preferred Shares, at Redemption Value

(60.9)

 

(265,000,000)

Net Assets Applicable to Common Shareholders

100.0

 

435,315,733

 

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

The cost for federal income tax purposes was $737,352,687. At February 29, 2008, net unrealized appreciation for all securities based on tax cost was $14,760,134. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $32,802,336 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $18,042,202.

*

Variable rate demand notes are securities whose interest rates are reset periodically at market levels. These securities are often payable on demand and are shown at their current rate as of February 29, 2008.

**

Floating rate notes are securities whose yields vary with a designated market index or market rate, such as the coupon-equivalent of the US Treasury bill rate. These securities are shown at their current rate as of February 29, 2008.

 

 


 

 

(a)

Bond is insured by one of these companies:

 

 

Insurance Coverage

As a % of Total

Investment Portfolio

 

 

Ambac Financial Group, Inc.

14.0

 

 

Financial Guaranty Insurance Company

10.4

 

 

Financial Security Assurance, Inc.

15.3

 

 

MBIA Corp.

8.2

 

 

Radian

0.7

 

(b)

Security incorporates a letter of credit from a major bank.

(c)

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

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

AMT: Subject to alternative minimum tax.

CRVS: Custodial Residual and Variable Securities

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

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

RITES: Residual Interest Tax Exempt Security

 

The following is a summary of the inputs used as of February 29, 2008 in valuing the Fund’s assets carried at fair value:

 

Valuation Inputs

Investments in Securities at

Value

Level 1 - Quoted Prices

$ -

Level 2 - Other Significant

752,112,821

Observable Inputs

Level 3 - Significant

-

Unobservable Inputs

Total

$ 752,112,821

 

 

The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“FAS 157"), effective December 1, 2007, which governs the application of generally accepted accounting principles that require fair value measurements of the Fund’s assets and liabilities. Fair value is an estimate of the price the Fund would receive upon selling a security in a timely transaction to an independent buyer in the principal or most advantageous market of the security. FAS 157 established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value including such a pricing model and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

 

 

 

 

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels as follows:

 


 

 

Level 1 – quoted prices in active markets for identical securities

 

Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

 

Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

 

For Level 1 inputs, the Fund uses unadjusted quoted prices in active markets for assets or liabilities with sufficient frequency and volume to provide pricing information as the most reliable evidence of fair value. The Fund’s Level 2 valuation techniques include inputs other than quoted prices within Level 1 that are observable for an asset or liability, either directly or indirectly. Level 2 observable inputs may include quoted prices for similar assets and liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active in which there are few transactions, the prices are not current, or price quotations vary substantially over time or among market participants. Inputs that are observable for the asset or liability in Level 2 include such factors as interest rates, yield curves, prepayment speeds, credit risk, and default rates for similar liabilities. For Level 3 valuation techniques, the Fund uses unobservable inputs that reflect assumptions market participants would be expected to use in pricing the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available and are developed based on the best information available under the circumstances. In developing unobservable inputs, market participant assumptions are used if they are reasonably available without undue cost and effort.

 

The Fund may record changes to valuations based on the amount that might reasonably be expected to receive for a security upon its current sale consistent with the fair value measurement objective. Each determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. Examples of such factors may include, but are not limited to the type of the security, the existence of any contractual restrictions on the security’s disposition, the price and extent of public trading in similar securities of the issue or of comparable companies, quotations or evaluated prices from broker-dealers and/or pricing services, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the company’s financial statements, an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold, and with respect to debt securities, the maturity, coupon, creditworthiness, currency denomination, and the movement of the market in which the security is normally traded. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value determined upon sale of those investments.

 

 

ITEM 2.

CONTROLS AND PROCEDURES

 

 

 

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

 

 

 

(b)         There have been no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting.

 

 

ITEM 3.

EXHIBITS

 

 

 

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

 

 


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Registrant:

DWS Municipal Income Trust

 

By:

/s/Michael G. Clark

 

Michael G. Clark

President

 

Date:

April 16, 2008

 

 

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.

 

Registrant:

DWS Municipal Income Trust

 

By:

/s/Michael G. Clark

 

Michael G. Clark

President

 

Date:

April 16, 2008

 

 

By:

/s/Paul Schubert

 

Paul Schubert

Chief Financial Officer and Treasurer

 

Date:                                        April 16, 2008