Investment Portfolio

as of August 31, 2008 (Unaudited)

Principal
Amount ($)

Value ($)

Municipal Bonds and Notes 138.9%

Alabama 3.6%

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

1,000,000

1,121,460

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

5,500,000

6,018,815

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

8,560,000

9,052,201

16,192,476

Arizona 2.9%

Arizona, Health Facilities Authority Revenue, Banner Health System, Series D, 5.375%, 1/1/2032

3,000,000

2,950,800

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

7,000,000

7,616,210

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

2,400,000

2,240,328

12,807,338

California 11.7%

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

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

3,710,000

2,944,924

Series B, Prerefunded, 5.625%, 6/1/2038

7,080,000

7,839,684

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

11,730,000

13,566,683

California, State General Obligation:

Series 2, 5.0%, 9/1/2019

4,385,000

4,610,827

5.0%, 12/1/2020

2,000,000

2,066,460

5.125%, 4/1/2024

4,400,000

4,490,772

5.25%, 12/1/2021

10,215,000

10,630,444

5.25%, 4/1/2030

110,000

111,140

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

2,500,000

2,625,200

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

3,000,000

2,405,670

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

1,155,000

1,146,892

52,438,696

Colorado 7.5%

Colorado, E-470 Public Highway Authority Revenue, Series A-1, 5.5%, 9/1/2024 (a)

2,500,000

2,514,425

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

1,000,000

1,131,540

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

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

6,145,000

6,475,478

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

5,705,000

6,047,015

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

2,000,000

2,119,900

Colorado, Public Energy Authority, Natural Gas Purchase Revenue, 6.5%, 11/15/2038

10,000,000

9,653,200

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

175,000

188,011

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

5,000,000

5,141,900

33,271,469

District of Columbia 3.5%

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

640,000

660,717

District of Columbia, General Obligation:

Series R-11386, 144A, 2.19% **, 6/1/2020 (a)

2,000,000

2,000,000

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

8,245,000

8,340,065

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

2,810,000

2,869,853

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

1,860,000

1,920,208

15,790,843

Florida 7.6%

Dade County, FL, Special Assessment Revenue:

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

7,735,000

3,301,917

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

16,955,000

6,374,741

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

1,000,000

1,044,750

Miami-Dade County, FL, Educational Facilities Authority Revenue, University of Miami, Series A, 5.75%, 4/1/2028

3,000,000

3,106,020

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

6.0%, 7/1/2013 (a)

1,665,000

1,769,395

6.0%, 7/1/2014 (a)

1,000,000

1,062,700

North Brevard County, FL, Hospital District Revenue, Parrish Medical Center Project, 5.75%, 10/1/2043

10,000,000

9,616,700

Orange County, FL, Health Facilities Authority Revenue, Orlando Regional Healthcare Systems:

Series B, 5.25%, 12/1/2029 (a)

3,500,000

3,577,455

Prerefunded, 5.75%, 12/1/2032

1,000,000

1,115,100

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

2,850,000

3,060,558

34,029,336

Georgia 4.4%

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

Series A, 5.0%, 3/15/2022

7,340,000

6,972,339

Series A, 5.5%, 9/15/2027

5,000,000

4,458,100

Richmond County, GA, Hospital Authority Revenue, Anticipation Certificates, University Health Services, Inc. Project, 1.85% **, 1/1/2036, SunTrust Bank (b)

8,000,000

8,000,000

19,430,439

Hawaii 4.5%

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

8,800,000

9,183,768

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

2,195,000

2,220,594

Hawaii, Port Authority Revenue:

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

2,950,000

3,099,653

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

3,135,000

3,339,151

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

2,310,000

2,420,187

20,263,353

Idaho 0.0%

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

10,000

10,009

Illinois 6.7%

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

10,000,000

10,212,900

Chicago, IL, Core City General Obligation:

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

2,085,000

2,249,152

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

2,000,000

2,161,940

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

2,000,000

2,161,940

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

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

1,000,000

1,078,730

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

1,000,000

1,078,730

Illinois, Finance Authority Revenue, Northwest Community Hospital, Series A, 5.5%, 7/1/2038 (c)

5,750,000

5,633,965

Illinois, Finance Authority Revenue, Rush University Medical Center, Series B, 5.75%, 11/1/2028 (a)

1,250,000

1,269,125

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

4,000,000

4,182,520

30,029,002

Indiana 1.2%

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

5,000,000

5,509,000

Kansas 0.8%

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

3,000,000

3,345,300

Kentucky 2.4%

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

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

790,000

865,232

Series A, 6.5%, 10/1/2020

1,210,000

1,249,373

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

3,130,000

3,435,989

Series A, 6.625%, 10/1/2028

870,000

907,497

Kentucky, Economic Development Finance Authority, Louisville Arena Project Revenue, Series A-1, 6.0%, 12/1/2042 (a) (c)

4,000,000

4,068,360

10,526,451

Maine 0.1%

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

265,000

265,697

Maryland 0.9%

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

2,500,000

2,731,400

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

1,500,000

1,472,895

4,204,295

Massachusetts 1.8%

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

5,000,000

4,909,650

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

3,000,000

3,050,580

7,960,230

Michigan 2.2%

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

1,500,000

1,466,145

Michigan, Industrial Development Revenue:

Prerefunded, 5.5%, 6/1/2018 (a)

3,425,000

3,625,465

Prerefunded, 5.75%, 6/1/2016 (a)

4,640,000

4,931,485

10,023,095

Minnesota 2.5%

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

4,395,000

4,549,880

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

2,500,000

2,532,725

Minnesota, State General Obligation, Series R-11576, 144A, 1.96% **, 8/1/2020 (a)

3,865,000

3,865,000

10,947,605

Missouri 0.1%

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

365,000

365,325

Nevada 2.1%

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

10,000,000

9,508,000

New Jersey 9.8%

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

1,090,000

1,015,640

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

5,000,000

6,044,800

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

10,775,000

10,903,546

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

1,400,000

1,294,720

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

1,875,000

2,038,256

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

10,000,000

10,645,700

New Jersey, Tobacco Settlement Financing Corp.:

Series 1-A, 5.0%, 6/1/2029

3,325,000

2,582,794

Series 1-A, 5.0%, 6/1/2041

1,000,000

714,820

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

8,000,000

8,464,480

43,704,756

New York 9.2%

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

3,390,000

3,565,229

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

1,500,000

1,668,405

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

10,000,000

10,399,600

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

5,500,000

5,834,125

New York, Transportation/Tolls Revenue, Prerefunded, 5.75%, 4/1/2014 (a)

2,000,000

2,068,300

New York & New Jersey, Port Authority, Series 3095, 144A, 1.84% **, 12/1/2013

6,000,000

6,000,000

New York City, NY, Municipal Water Finance Authority, Series 3092, 144A, 1.84% **, 6/15/2010

5,000,000

5,000,000

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

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

2,000,000

2,158,620

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

3,000,000

3,237,420

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

1,180,000

1,345,306

41,277,005

North Carolina 1.8%

Charlotte, NC, Airport Revenue:

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

2,480,000

2,536,073

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

1,140,000

1,164,943

North Carolina, Electric Revenue, Municipal Power Agency:

Series C, 5.375%, 1/1/2017

1,000,000

1,030,500

Series B, 6.375%, 1/1/2013

3,000,000

3,170,580

7,902,096

North Dakota 0.8%

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

3,400,000

3,740,170

Ohio 2.9%

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

8,820,000

7,664,845

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

6,000,000

5,281,920

12,946,765

Oregon 1.1%

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

1,000,000

1,078,070

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

1,000,000

1,078,070

Portland, OR, Special Assessment Revenue, Downtown Waterfront, Series A, 5.75%, 6/15/2019 (a)

2,820,000

2,920,110

5,076,250

Pennsylvania 0.6%

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

2,570,000

2,703,357

Rhode Island 0.8%

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

4,000,000

3,766,360

South Carolina 3.5%

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

1,500,000

1,492,740

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

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

5,420,000

6,408,390

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

2,000,000

2,259,620

South Carolina, Tobacco Settlement Revenue Management Authority:

Series B, 6.0%, 5/15/2022

1,790,000

1,893,516

Series B, ETM, 6.375%, 5/15/2030

3,085,000

3,491,757

15,546,023

South Dakota 0.3%

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

1,500,000

1,454,910

Tennessee 5.7%

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

2,000,000

1,750,180

Jackson, TN, Hospital Revenue, Jackson-Madison Project, 5.625%, 4/1/2038

4,000,000

3,929,040

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

4,690,000

4,833,514

Shelby County, TN, Health Educational & Housing Facility Board, Hospital Revenue, Methodist Health Care, Prerefunded, 6.5%. 9/1/2026

7,000,000

8,025,850

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

7,000,000

6,866,510

25,405,094

Texas 23.2%

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

Prerefunded, 6.0%, 11/15/2013 (a)

3,190,000

3,344,779

Prerefunded, 6.0%, 11/15/2015 (a)

3,480,000

3,648,850

Prerefunded, 6.0%, 11/15/2016 (a)

3,625,000

3,800,885

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

3,965,000

3,691,137

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

5,500,000

6,109,730

Harris County, TX, Houston Port Authority, Series A, AMT, 6.25%, 10/1/2029

3,000,000

3,222,750

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

3,300,000

3,304,323

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

3,960,000

4,145,328

North Texas, Tollway Authority Revenue, First Tier, Series A, 5.625%, 1/1/2033

3,500,000

3,442,740

North Texas, Tollway Authority Revenue, Second Tier, Series F, 5.75%, 1/1/2038

6,500,000

6,293,755

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

5,390,000

5,695,667

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

4,000,000

3,886,480

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

4,500,000

4,964,985

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

6,500,000

6,622,460

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

2,000,000

1,873,280

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

Series B, 2.56% ***, 12/15/2026

12,000,000

8,568,000

Series D, 6.25%, 12/15/2026

5,000,000

4,892,900

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

10,865,000

11,105,551

Texas, Veteran Housing Assistance Fund II, Series A, AMT, 1.8% **, 12/1/2038

15,000,000

15,000,000

103,613,600

Virginia 0.2%

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

1,200,000

854,508

Washington 5.8%

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

7,355,000

7,789,901

Seattle, WA, Special Assessment Revenue:

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

1,085,000

1,119,579

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

1,045,000

1,096,048

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

3,000,000

3,156,720

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

1,500,000

1,569,555

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

4,835,000

4,987,496

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

5,240,000

4,995,187

Washington, State Health Care Facilities Authority Revenue, Virginia Mason Medical Center, Series A, 6.125%, 8/15/2037

1,000,000

967,760

25,682,246

West Virginia 4.6%

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

Series A, Prerefunded, 6.75%, 9/1/2022

2,355,000

2,584,236

Prerefunded, 6.75%, 9/1/2030

395,000

433,449

West Virginia, Hospital Finance Authority, Charleston Medical Center:

Prerefunded, 6.75%, 9/1/2022

9,645,000

10,583,844

Prerefunded, 6.75%, 9/1/2030

3,605,000

3,955,911

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

2,740,000

2,843,517

20,400,957

Wisconsin 2.1%

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

3,670,000

3,653,375

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

6,000,000

5,714,400

9,367,775

Total Municipal Bonds and Notes (Cost $598,048,319)

620,359,831

Municipal Inverse Floating Rate Notes (d) 74.2%

Arizona 2.4%

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

11,010,213

10,780,831

Trust: Phoenix, AZ, Puttable Floating Option, Tax Exempt Receipts, RITES-PA-1509,

144A, AMT, 16.187%, 5/1/2039, Leverage Factor at purchase date: 4 to 1

California 10.2%

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

10,000,000

10,131,850

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

14.0%, 4/1/2031, Leverage Factor at purchase date: 4 to 1

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

10,000,000

10,446,200

Trust: California, State General Obligation, Series 1932, 144A, 11.99%, 6/1/2023,

Leverage Factor at purchase date: 4 to 1

Rowland, CA, Unified School District, Series A, 5.0%, 8/1/2031 (a) (e)

17,715,000

18,004,095

Trust: Rowland, CA, Unified School District, Series 2803, 144A, 15.513%, 8/1/2031,

Leverage Factor at purchase date: 5 to 1

Sacramento, CA, Municipal Utility District, Electric Revenue, Series U, 5.0%, 8/15/2026 (a) (e)

2,615,144

2,689,823

Sacramento, CA, Municipal Utility District, Electric Revenue, Series U, 5.0%, 8/15/2027 (a) (e)

2,026,590

2,084,463

Sacramento, CA, Municipal Utility District, Electric Revenue, Series U, 5.0%, 8/15/2028 (a) (e)

2,044,931

2,103,326

Trust: Sacramento, CA, Municipal Utility District, Electric Revenue, Series 2815, 144A,

15.513%, 8/15/2026, Leverage Factor at purchase date: 5 to 1

45,459,757

Florida 14.7%

Miami-Dade County, FL, Transit Sales Surtax Revenue, 5.0%, 7/1/2023 (a) (e)

3,740,000

3,821,738

Miami-Dade County, FL, Transit Sales Surtax Revenue, 5.0%, 7/1/2024 (a) (e)

3,915,000

4,000,563

Miami-Dade County, FL, Transit Sales Surtax Revenue, 5.0%, 7/1/2025 (a) (e)

4,122,500

4,212,597

Miami-Dade County, FL, Transit Sales Surtax Revenue, 5.0%, 7/1/2026 (a) (e)

4,317,500

4,411,859

Miami-Dade County, FL, Transit Sales Surtax Revenue, 5.0%, 7/1/2032 (a) (e)

16,470,000

16,829,953

Trust: Miami-Dade County, FL, Series 2008-1160, 144A, 13.395%, 7/1/2023, Leverage

Factor at purchase date: 4 to 1

Miami-Dade County, FL, Aviation Revenue, Miami International Airport, Series A, AMT, 5.25%, 10/1/2033 (a) (e)

34,000,000

32,361,200

Trust: Miami-Dade County, FL, Series 2008-1144, 144A, AMT, 13.86%, 10/1/2033,

Leverage Factor at purchase date: 4 to 1

65,637,910

Illinois 1.5%

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

6,820,000

6,828,764

Trust: Aurora, IL, Puttable Floating Option, Tax Exempt Receipts, RITES-PA-1499,

144A, AMT, 15.64%, 6/1/2045, Leverage Factor at purchase date: 4 to 1

Massachusetts 5.3%

Massachusetts, State Water Pollution Abatement Trust, Series 13, 5.0%, 8/1/2032 (e)

18,250,000

18,648,288

Massachusetts, State Water Pollution Abatement Trust, Series 13, 5.0%, 8/1/2037 (e)

5,000,000

5,109,120

Trust: Massachusetts, State Water Pollution Abatement Trust, Series 2823, 144A,

16.44%, 8/1/2032, Leverage Factor at purchase date: 5 to 1

23,757,408

Nevada 6.6%

Clark County, NV, General Obligation, Limited Tax-Bond Bank, 5.0%, 6/1/2028 (e)

9,421,628

9,625,086

Clark County, NV, General Obligation, Limited Tax-Bond Bank, 5.0%, 6/1/2029 (e)

9,892,710

10,106,341

Clark County, NV, General Obligation, Limited Tax-Bond Bank, 5.0%, 6/1/2030 (e)

9,601,660

9,809,005

Trust: Clark County, NV, General Obligation, Series 2841, 144A, 16.396%, 6/1/2028,

Leverage Factor at purchase date: 5 to 1

29,540,432

New York 17.8%

New York City, NY, Transitional Finance Authority Revenue, Series C-1, 5.0%, 11/1/2027 (e)

17,560,000

18,239,572

Trust: New York City, NY, Series 2008-1190, 144A, 13.49%, 11/1/2027, Leverage Factor

at purchase date: 4 to 1

New York, State Dormitory Authority, State Personal Income Tax Revenue, Series A, 5.0%, 3/15/2026 (e)

13,500,000

14,104,125

Trust: New York, State Dormitory Authority Revenue, Series 2008-1189, 144A, 13.49%,

3/15/2026, Leverage Factor at purchase date: 4 to 1

New York, Triborough Bridge & Tunnel Authority Revenues, Series C, 5.0%, 11/15/2033 (e)

12,000,000

12,229,980

Trust: New York, Triborough Bridge & Tunnel Authority Revenues, Series 2008-1188,

144A, 13.49%, 11/15/2033, Leverage Factor at purchase date: 4 to 1

New York, State Dormitory Authority, State Personal Income Tax Revenues, Series A, 5.0%, 3/15/2026 (e)

10,000,000

10,408,850

Trust: New York, State Dormitory Authority Revenues, Secondary Issues, Series 2568,

144A, 13.61%, 3/15/2026, Leverage Factor at purchase date: 4 to 1

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

10,000,000

10,481,350

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

144A, 13.94%, 3/15/2024, Leverage Factor at purchase date: 4 to 1

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

5,425,000

5,624,758

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

144A, 13.998%, 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 (e)

8,080,000

8,306,200

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

144A, 14.0%, 7/1/2027, Leverage Factor at purchase date: 4 to 1

79,394,835

Pennsylvania 2.3%

Pennsylvania, State General Obligation, Second Series, 5.0%, 1/1/2025 (e)

10,000,000

10,416,850

Trust: Pennsylvania, State General Obligation, Series 2008-1146, 144A, 13.4%,

1/1/2025, Leverage Factor at purchase date: 4 to 1

Tennessee 7.4%

Nashville & Davidson County, TN, Metropolitan Government, 5.0%, 1/1/2027 (e)

10,756,695

11,212,650

Trust: Nashville & Davidson County, TN, Metropolitan Government, Series

2631-3, 144A, 13.546%, 1/1/2027, Leverage Factor at purchase date: 4 to 1

Nashville & Davidson County, TN, Metropolitan Government, 5.0%, 1/1/2026 (e)

10,200,000

10,679,910

Trust: Nashville & Davidson County, TN, Metropolitan Government, Series

2631-2, 144A, 13.55%, 1/1/2026, Leverage Factor at purchase date: 4 to 1

Nashville & Davidson County, TN, Metropolitan Government, 5.0%, 1/1/2028 (e)

10,564,925

10,971,485

Trust: Nashville & Davidson County, TN, Metropolitan Government, Series

2631-4, 144A, 13.555%, 1/1/2028, Leverage Factor at purchase date: 4 to 1

32,864,045

Texas 2.3%

Texas, State General Obligation, Transportation Commission Mobility Fund, 5.0%, 4/1/2025 (e)

10,000,000

10,433,100

Trust: Texas, Series 2008-1147, 144A, 13.4%, 4/1/2025, Leverage Factor at purchase

date: 4 to 1

Virginia 3.7%

Virginia, State Resource Authority, Clean Water Revenue, 5.0%, 10/1/2027 (e)

9,039,684

9,446,742

Virginia, State Resource Authority, Clean Water Revenue, 5.0%, 10/1/2028 (e)

6,770,509

7,075,386

Trust: Virginia, State Resource Authority, Clean Water Revenue, Series 2917, 144A,

15.987%, 10/1/2027, Leverage Factor at purchase date: 5 to 1

16,522,128

Total Municipal Inverse Floating Rate Notes (Cost $332,755,686)

331,636,060

% of
Net Assets

Value ($)

Total Investment Portfolio (Cost $930,804,005) †

213.1

951,995,891

Other Assets and Liabilities, Net

(53.8)

(240,263,994)

Preferred Shares, at Redemption Value

(59.3)

(265,000,000)

Net Assets Applicable to Common Shareholders

100.0

446,731,897

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.

*

Non-income producing security. In the case of a bond, generally denotes that the issuer has defaulted on the payment of principal or interest or has filed for bankruptcy. The following table represents bonds that are in default:

Securities

Coupon

Maturity

Date

Principal

Amount ($)

Acquisition

Cost ($)

Value ($)

Green Springs, OH, Senior Care Revenue, St. Francis Health Care Center Project, Series A

7.125%

5/15/2025

6,000,000

5,917,429

5,281,920

**

Variable rate demand notes are securities whose interest rates are reset periodically at market levels. These securities are often payable on demand and are shown at their current rates as of August 31, 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 August 31, 2008.

†

The cost for federal income tax purposes was $930,084,340. At August 31, 2008, net unrealized appreciation for all securities based on tax cost was $21,911,551. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $32,951,726 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $11,040,175.

(a)

Bond is insured by one of these companies:

Insurance Coverage

As a % of Total

Investment Portfolio

Ambac Financial Group

8.2

Assured Guaranty Corp.

3.8

Financial Guaranty Insurance Company

7.2

Financial Security Assurance, Inc.

13.6

MBIA Corp.

4.4

Radian Asset Assurance, Inc.

0.5

(b)

Security incorporates a letter of credit from the bank listed.

(c)

When-issued security.

(d)

Securities represent the underlying municipal obligations of inverse floating rate obligations held by the Fund.

(e)

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.

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

Valuation Inputs

Investments in Securities

Level 1

$ -

Level 2

951,995,891

Level 3

-

Total

$ 951,995,891

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.

Registrant:

DWS Municipal Income Trust

By:

/s/Michael G. Clark

Michael G. Clark

Date:

October 22, 2008

Registrant:

DWS Municipal Income Trust

By:

/s/Michael G. Clark

Michael G. Clark

Date:

October 22, 2008

By:

/s/Paul Schubert

Paul Schubert