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)

 

222            South Riverside Plaza

Chicago, IL 60606

(Address of principal executive offices)                        (Zip code)

 

Paul Schubert

345 Park Avenue

New York, NY 10154

(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:08/31/07

 

ITEM 1.            SCHEDULE OF INVESTMENTS

 

Investment            Portfolio                                                           **as of****August 31, 2007            (Unaudited)** 

 

**DWS            Municipal Income Trust**

 

|                                                                                                                                                                                | **Principal****Amount ($)**          |      | **Value                            ($)** |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------|-----------|------------------------------------------|
|                                                                                                                                                                                     |
|                                                                                                                                                                                | **Municipal Bonds and Notes 149.5%** |      |
| **Alabama 3.5%**                                                                                                                                                                    |                                 |
| Camden, AL, Industrial Development Board Revenue,                            AMT, Series B, 6.375%, 12/1/2024                                                                       |                                 | 1,000,000 |                                     | 1,069,340 |
| Huntsville, AL, Hospital & Healthcare Revenue,                            Health Care Authority, Series A, 5.75%, 6/1/2031                                                      |                                 | 5,500,000 |                                     | 5,932,575 |
| Huntsville, AL, Water & Sewer Revenue, AMT,                            5.75%, 10/1/2011 (a)                                                                                     |                                 | 8,560,000 |                                     | 8,990,911 |
|                                                                                                                                                                                     |
|                                                                                                                                                                                | **15,992,826**                       |
| **Arizona 1.7%**                                                                                                                                                                    |                                 |
| Arizona, Hospital & Healthcare Revenue, Health                            Facilities Authority, Catholic Healthcare West, Series A, 6.625%,                            7/1/2020 |                                 | 7,000,000 |                                     | **7,601,720** |
|                                                                                                                                                                                     |                                      |           |                                          |  |  |  |

 

 

 

| **California 18.6%**                                                                                                                                                                   |                                                                         |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------|
| California, Health Facilities Financing Authority                            Revenue, Sutter Health, Series A, 5.0%, 11/15/2042                                                        |                                                                         | 2,000,000 |   | 1,981,840 |
| California, Special Assessment Revenue, Golden State                            Tobacco Securitization Corp.:                                                                          |                                                                         |
|                                                                                                                                                                                   | Series A-1, 5.0%, 6/1/2033                                                   |   | 4,000,000 |   | 3,626,480 |
|                                                                                                                                                                                   | Series A, 5.0%, 6/1/2038 (a)                                                 |   | 2,500,000 |   | 2,526,225 |
|                                                                                                                                                                                   | Series B, 5.625%, 6/1/2038                                                   |   | 7,080,000 |   | 7,690,650 |
|                                                                                                                                                                                   | Series 2003-A-1, 6.75%, 6/1/2039                                             |   | 11,730,000 |   | 13,479,882 |
| California, State General Obligation:                                                                                                                                                  |                                                                         |
|                                                                                                                                                                                   | 4.5%, 10/1/2029                                                              |   | 15,000,000 |   | 13,805,700 |
|                                                                                                                                                                                   | Series 2, 5.0%, 9/1/2019                                                     |   | 4,385,000 |   | 4,575,572 |
|                                                                                                                                                                                   | 5.0%, 12/1/2020                                                              |   | 4,600,000 |   | 4,755,296 |
|                                                                                                                                                                                   | 5.0%, 3/1/2022 (a)                                                           |   | 3,500,000 |   | 3,629,535 |
|                                                                                                                                                                                   | 5.0%, 6/1/2028                                                               |   | 3,000,000 |   | 3,039,210 |
|                                                                                                                                                                                   | 5.125%, 4/1/2024                                                             |   | 4,400,000 |   | 4,541,108 |
|                                                                                                                                                                                   | 5.25%, 12/1/2021                                                             |   | 10,215,000 |   | 10,707,465 |
|                                                                                                                                                                                   | 5.25%, 4/1/2030                                                              |   | 110,000 |   | 113,936 |
| California, State Public Works Board, Lease Revenue,                            Department of Corrections, Series C, 5.5%, 6/1/2021                                                    |                                                                         | 2,500,000 |   | 2,653,575 |
| California, State Public Works Board, Lease Revenue,                            Department of Mental Health, Series A, 5.5%, 6/1/2021                                                  |                                                                         | 5,000,000 |   | 5,328,350 |
| Palmdale, CA, Water District Revenue, Certificates of                            Participation, 5.0%, 10/1/2034 (a)                                                                    |                                                                         | 2,000,000 |   | 2,023,700 |
|                                                                                                                                                                                        |
|                                                                                                                                                                                   | **84,478,524**                                                               |
| **Colorado 4.7%**                                                                                                                                                                      |                                                                         |
| Colorado, Hospital & Healthcare Revenue,                            Portercare Adventist Health Project, 6.5%, 11/15/2031                                                          |                                                                         | 1,000,000 |   | 1,115,590 |
| Colorado, Hospital & Healthcare Revenue, Poudre                            Valley Health Facilities:                                                                               |                                                                         |
|                                                                                                                                                                                   | Series A, 5.5%, 12/1/2017 (a)                                                |   | 6,145,000 |   | 6,434,491 |
|                                                                                                                                                                                   | Series A, 6.0%, 12/1/2015 (a)                                                |   | 5,705,000 |   | 6,034,749 |
|                                                                                                                                                                                   | Series A, 6.0%, 12/1/2016 (a)                                                |   | 2,000,000 |   | 2,115,600 |
| Colorado, Single Family Housing Revenue, AMT, Series                            B2, 7.25%, 10/1/2031                                                                                   |                                                                         | 230,000 |   | 244,732 |
| Denver, CO, Airport Revenue, AMT, Series A, 6.0%,                            11/15/2014 (a)                                                                                            |                                                                         | 5,000,000 |   | 5,290,150 |
|                                                                                                                                                                                        |
|                                                                                                                                                                                   | **21,235,312**                                                               |
| **District of Columbia 8.3%**                                                                                                                                                          |                                                                         |
| District of Columbia, Core City General Obligation,                            Series B, 5.5%, 6/1/2011 (a)                                                                            |                                                                         | 20,000,000 |   | 21,245,000 |
| District of Columbia, ETM, Series A, Prerefunded,                            5.5%, 6/1/2014 (a)                                                                                        |                                                                         | 640,000 |   | 664,646 |
| District of Columbia, General Obligation:                                                                                                                                              |                                                                         |
|                                                                                                                                                                                   | Prerefunded, Series A-2005, 5.25%, 6/1/2027                            (a)   |   | 2,585,000 |   | 2,640,035 |
|                                                                                                                                                                                   | Series A-2005, 5.25%, 6/1/2027 (a)                                           |   | 8,245,000 |   | 8,392,421 |
| District of Columbia, Howard University Revenue,                            Series A, 5.0%, 10/1/2023 (a)                                                                              |                                                                         | 2,810,000 |   | 2,908,406 |
| District of Columbia, State General Obligation,                            Series A, 5.5%, 6/1/2014 (a)                                                                                |                                                                         | 1,860,000 |   | 1,927,127 |
|                                                                                                                                                                                        |
|                                                                                                                                                                                   | **37,777,635**                                                               |
| **Florida 7.6%**                                                                                                                                                                       |                                                                         |
| Alachua County, FL, Health Facilities Authority                            Revenue, Shands Teaching Hospital, Series A, 4.0%*, 12/1/2012, SunTrust                            Bank (b) |                                                                         | 1,100,000 |   | 1,100,000 |
| Dade County, FL, Airport Revenue, AMT, Series A,                            5.75%, 10/1/2026 (a)                                                                                       |                                                                         | 13,000,000 |   | 13,201,760 |
| Dade County, FL, Special Assessment                            Revenue:                                                                                                                |                                                                         |
|                                                                                                                                                                                   | Series B, Prerefunded, Zero Coupon, 10/1/2022                            (a) |   | 7,735,000 |   | 3,178,157 |
|                                                                                                                                                                                   | Series B, Prerefunded, Zero Coupon, 10/1/2024                            (a) |   | 16,955,000 |   | 6,135,845 |
| Hillsborough County, FL, Industrial Development                            Revenue, University Community Hospital Project, Series A, 5.625%,                            8/15/2023      |                                                                         | 1,000,000 |   | 1,006,450 |
| Miami-Dade County, FL, Transportation/Tolls Revenue,                            Expressway Authority:                                                                                  |                                                                         |
|                                                                                                                                                                                   | 6.0%, 7/1/2013 (a)                                                           |   | 1,665,000 |   | 1,777,604 |
|                                                                                                                                                                                   | 6.0%, 7/1/2014 (a)                                                           |   | 1,000,000 |   | 1,067,630 |
| Orange County, FL, Health Facilities Authority                            Revenue, Orlando Regional Healthcare System:                                                                 |                                                                         |   |   |   |
| Series B, 4.0%*, 10/1/2041                            (a)                                                                                                                              |                                                                         | 1,000,000 |   | 1,000,000 |
|                                                                                                                                                                                        |                                                                              |  |  |  |  |  |  |

 

 

 

| 5.75%,                            12/1/2032                                                                                                                                     |                                                                   | 1,000,000  |      | 1,093,700     |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------|------------|-----------|---------------|
| Palm Beach County, FL, School District Revenue Lease,                            Series A, Prerefunded, 5.75%, 8/1/2017 (a)                                                     |                                                                   | 2,850,000  |      | 3,033,597     |
| South Miami, FL, Health Facilities Authority Hospital                            Revenue, Baptist Health South Florida Group, 5.0%, 8/15/2032                                   |                                                                   | 2,000,000  |      | 2,000,720     |
|                                                                                                                                                                                 |
|                                                                                                                                                                            | **34,595,463**                                                         |
| **Georgia 3.6%**                                                                                                                                                                |                                                                   |
| Atlanta, GA, General Obligation, Series A, 5.0%,                            12/1/2021 (a)                                                                                       |                                                                   | 4,455,000  |      | 4,644,872     |
| Atlanta, GA, Water & Wastewater Revenue, Water                            Utilities Improvements, 5.0%, 11/1/2024 (a)                                                       |                                                                   | 4,000,000  |      | 4,107,560     |
| Georgia, Main Street National Gas, Inc., Gas Project                            Revenue, Series A, 5.0%, 3/15/2022                                                              |                                                                   | 7,340,000  |      | 7,527,023     |
|                                                                                                                                                                                 |
|                                                                                                                                                                            | **16,279,455**                                                         |
| **Hawaii 4.5%**                                                                                                                                                                 |                                                                   |
| Hawaii, Airport System Revenue, AMT, Series B, 6.5%,                            7/1/2013 (a)                                                                                    |                                                                   | 8,800,000  |      | 9,448,384     |
| Hawaii, Electric Revenue, Department of Budget &                            Finance, AMT, Series D, 6.15%, 1/1/2020 (a)                                                     |                                                                   | 2,195,000  |      | 2,271,737     |
| Hawaii, Port Authority Revenue, AMT:                                                                                                                                            |                                                                   |
|                                                                                                                                                                            | Series A, 6.0%, 7/1/2011 (a)                                           |       | 2,950,000 |          | 3,143,373 |
|                                                                                                                                                                            | Series A, 6.0%, 7/1/2012 (a)                                           |       | 3,135,000 |          | 3,318,397 |
| Hawaii, State General Obligation, Series CT,                            Prerefunded, 5.75%, 9/1/2014 (a)                                                                        |                                                                   | 2,310,000  |      | 2,422,636     |
|                                                                                                                                                                                 |
|                                                                                                                                                                            | **20,604,527**                                                         |
| **Idaho 0.0%**                                                                                                                                                                  |                                                                   |
| Idaho, Single Family Housing Revenue, AMT, Series C2,                            6.9%, 7/1/2025                                                                                 |                                                                   | 80,000     |      | **80,092**    |
| **Illinois 8.4%**                                                                                                                                                               |                                                                   |
| Chicago, IL, Airport Revenue, O'Hare International                            Airport, AMT, 5.5%, 1/1/2014 (a)                                                                  |                                                                   | 10,000,000 |      | 10,423,900    |
| Chicago, IL, Core City General Obligation:                                                                                                                                      |                                                                   |
|                                                                                                                                                                            | Series A, Prerefunded, 6.0%, 1/1/2014 (a)                              |       | 2,085,000 |          | 2,232,993 |
|                                                                                                                                                                            | Series A, Prerefunded, 6.125%, 1/1/2015                            (a) |       | 2,000,000 |          | 2,148,620 |
|                                                                                                                                                                            | Series A, 6.125%, 1/1/2016 (a)                                         |       | 2,000,000 |          | 2,148,620 |
| Chicago, IL, Other General Obligation, Neighborhoods                            Alive 21 Project:                                                                               |                                                                   |
|                                                                                                                                                                            | Series A, Prerefunded, 6.0%, 1/1/2015 (a)                              |       | 1,000,000 |          | 1,070,980 |
|                                                                                                                                                                            | Series A, 6.0%, 1/1/2017 (a)                                           |       | 1,000,000 |          | 1,070,980 |
| Chicago, IL, Water Revenue, Series A, 5.0%, 11/1/2020                            (a)                                                                                            |                                                                   | 3,615,000  |      | 3,783,893     |
| Illinois, Development Finance Authority, Hospital                            Revenue, Adventist Health System, Sunbelt Obligation, 5.5%,                            11/15/2020  |                                                                   | 2,500,000  |      | 2,613,300     |
| Illinois, Health Facilities Authority Revenue,                            Children's Memorial Hospital, Series A, Prerefunded, 5.625%, 8/15/2019                            (a) |                                                                   | 4,000,000  |      | 4,179,200     |
| Illinois, Higher Education Revenue, DePaul                            University, Educational Facilities Authority:                                                             |                                                                   |
|                                                                                                                                                                            | Prerefunded, 5.625%, 10/1/2013 (a)                                     |       | 2,695,000 |          | 2,870,876 |
|                                                                                                                                                                            | Prerefunded, 5.625%, 10/1/2015 (a)                                     |       | 1,710,000 |          | 1,821,595 |
|                                                                                                                                                                            |                                                                   |       |      |          |   |
| Illinois, Sales & Special Tax Revenue,                            Metropolitan Pier & Exposition Authority:                                                             |                                                                   |
|                                                                                                                                                                            | Series A, ETM, 5.5%, 6/15/2017 (a)                                     |       | 1,955,000 |          | 2,174,566 |
|                                                                                                                                                                            | Series A, 5.5%, 6/15/2017 (a)                                          |       | 1,555,000 |          | 1,723,686 |
|                                                                                                                                                                                 |
|                                                                                                                                                                            | **38,263,209**                                                         |
| **Indiana 1.2%**                                                                                                                                                                |                                                                   |
| Indiana, Hospital & Healthcare Revenue, Health                            Facilities Authority, 5.5%, 11/1/2031                                                             |                                                                   | 5,000,000  |      | **5,386,200** |
| **Kansas 0.7%**                                                                                                                                                                 |                                                                   |
| Overland Park, KS, Industrial Development Revenue,                            Series A, 7.375%, 1/1/2032                                                                        |                                                                   | 3,000,000  |      | **3,162,090** |
| **Kentucky 1.4%**                                                                                                                                                               |                                                                   |
| Kentucky, Economic Development Finance Authority,                            Health System Revenue, Norton Healthcare:                                                          |                                                                   |
|                                                                                                                                                                            | Series A, Prerefunded, 6.5%, 10/1/2020                                 |       | 790,000   |          | 860,318 |
|                                                                                                                                                                            | Series A, 6.5%, 10/1/2020                                              |       | 1,210,000 |          | 1,266,120 |
|                                                                                                                                                                                 |                                                                        |            |           |               |  |  |  |

 

 

 

|                                                                                                                                                                                  | Series A, Prerefunded, 6.625%, 10/1/2028 |       | 3,130,000 |          | 3,419,901 |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------|------------|-----------|---------------|-----------|
|                                                                                                                                                                                  | Series A, 6.625%, 10/1/2028              |       | 870,000   |          | 931,378   |
|                                                                                                                                                                                       |
|                                                                                                                                                                                  | **6,477,717**                            |
| **Louisiana 0.5%**                                                                                                                                                                    |                                     |
| Louisiana, Electric Revenue, 5.75%, 1/1/2013                            (a)                                                                                                           |                                     | 2,000,000  |      | **2,176,000** |
| **Maine 1.5%**                                                                                                                                                                        |                                     |
| Maine, Hospital & Healthcare Revenue, Series D,                            5.7%, 7/1/2013 (a)                                                                                     |                                     | 375,000    |      | 375,514       |
| Maine, Transportation/Tolls Revenue, 5.0%, 7/1/2017                            (a)                                                                                                    |                                     | 6,165,000  |      | 6,285,587     |
|                                                                                                                                                                                       |
|                                                                                                                                                                                  | **6,661,101**                            |
| **Maryland 0.6%**                                                                                                                                                                     |                                     |
| Maryland, Hospital & Healthcare Revenue,                            University of Maryland Medical System, 6.75%, 7/1/2030                                                        |                                     | 2,500,000  |      | **2,728,150** |
| **Massachusetts 3.6%**                                                                                                                                                                |                                     |
| Massachusetts, Airport Revenue, AMT, Series B, 5.5%,                            7/1/2009 (a)                                                                                          |                                     | 8,000,000  |      | 8,242,480     |
| Massachusetts, Airport Revenue, U.S. Airways, Inc.                            Project, AMT, Series A, 5.875%, 9/1/2023 (a)                                                            |                                     | 5,000,000  |      | 5,057,350     |
| Massachusetts, Port Authority Revenue, AMT, Series B,                            5.5%, 7/1/2015 (a)                                                                                   |                                     | 3,000,000  |      | 3,100,320     |
|                                                                                                                                                                                       |
|                                                                                                                                                                                  | **16,400,150**                           |
| **Michigan 2.2%**                                                                                                                                                                     |                                     |
| Chippewa County, MI, Hospital & Healthcare                            Revenue, Chippewa County War Memorial, Series B, 5.625%,                            11/1/2014               |                                     | 1,500,000  |      | 1,472,430     |
| Michigan, Industrial Development Revenue:                                                                                                                                             |                                     |
|                                                                                                                                                                                  | 5.5%, 6/1/2018 (a)                       |       | 3,425,000 |          | 3,584,125 |
|                                                                                                                                                                                  | 5.75%, 6/1/2016 (a)                      |       | 4,640,000 |          | 4,885,642 |
|                                                                                                                                                                                       |
|                                                                                                                                                                                  | **9,942,197**                            |
| **Minnesota 1.6%**                                                                                                                                                                    |                                     |
| Minneapolis & St. Paul, MN, Airport Revenue, AMT,                            Series B, 6.0%, 1/1/2012 (a)                                                                         |                                     | 4,395,000  |      | 4,622,705     |
| Minneapolis & St. Paul, MN, Port Authority                            Revenue, AMT, Series B, 5.625%, 1/1/2015 (a)                                                                |                                     | 2,500,000  |      | 2,575,625     |
|                                                                                                                                                                                       |
|                                                                                                                                                                                  | **7,198,330**                            |
| **Missouri 0.1%**                                                                                                                                                                     |                                     |
| Missouri, Hospital & Healthcare Revenue, Lake of                            the Ozarks General Hospital, 6.5%, 2/15/2021                                                          |                                     | 365,000    |      | **367,113**   |
| **Nevada 1.9%**                                                                                                                                                                       |                                     |
| Nevada, State General Obligation, Capital Improvement                            and Cultural Affairs Project, Series A, 5.5%, 2/1/2014                                               |                                     | 2,575,000  |      | 2,663,915     |
| Washoe County, NV, School District General                            Obligation, Prerefunded, 5.75%, 6/1/2014 (a)                                                                    |                                     | 5,450,000  |      | 5,690,508     |
|                                                                                                                                                                                       |
|                                                                                                                                                                                  | **8,354,423**                            |
| **New Jersey 12.5%**                                                                                                                                                                  |                                     |
| New Jersey, Casino Reinvestment Development                            Authority, Hotel Room Fee Revenue, 5.0%, 1/1/2025 (a)                                                          |                                     | 4,000,000  |      | 4,130,800     |
| New Jersey, Economic Development Authority Revenue,                            Cigarette Tax, 5.75%, 6/15/2034                                                                        |                                     | 1,090,000  |      | 1,133,622     |
| New Jersey, Hospital & Healthcare Revenue,                            General Hospital Center at Passaic, ETM, 6.75%, 7/1/2019 (a)                                                |                                     | 5,000,000  |      | 5,956,500     |
| New Jersey, Industrial Development Revenue, American                            Water Co., Inc. Project, AMT, Series A, 6.875%, 11/1/2034                            (a)              |                                     | 10,775,000 |      | 10,899,451    |
| New Jersey, Industrial Development Revenue, Economic                            Development Authority, Harrogate, Inc., Series A, 5.875%,                            12/1/2026        |                                     | 1,400,000  |      | 1,405,544     |
| New Jersey, Resource Recovery Revenue, Tobacco                            Settlement Financing Corp., 5.75%, 6/1/2032                                                                 |                                     | 2,025,000  |      | 2,168,188     |
| New Jersey, State Agency General Obligation Lease,                            Transportation Trust Fund Authority, Series A, Prerefunded, 5.75%,                            6/15/2017 |                                     | 10,000,000 |      | 10,555,500    |
|                                                                                                                                                                                       |                                          |            |           |               |           |  |  |

 

 

 

| New Jersey, Tobacco Settlement Financing Corp.,                            Series 1-A, 5.0%, 6/1/2041                                                                                                          |                                       | 7,000,000  |      | 6,067,950     |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------|------------|-----------|---------------|
| New Jersey, Transportation/Tolls Revenue, Economic                            Development Authority, Series A, Prerefunded, 5.75%, 5/1/2013                            (a)                                     |                                       | 6,000,000  |      | 6,203,760     |
| New Jersey, Transportation/Tolls Revenue, Garden                            State Parkway Project, Prerefunded, 5.6%, 1/1/2017 (a)                                                                             |                                       | 8,000,000  |      | 8,421,760     |
|                                                                                                                                                                                                                |
|                                                                                                                                                                                                           | **56,943,075**                             |
| **New York 11.7%**                                                                                                                                                                                             |                                       |
| Nassau County, NY, Hospital & Healthcare, 6.0%,                            8/1/2015 (a)                                                                                                                    |                                       | 3,390,000  |      | 3,597,027     |
| New York, State Agency General Obligation Lease,                            Higher Education Revenue, Dormitory Authority, Bronx-Lebanon Hospital                            Center, Series E, 5.2%, 2/15/2016 |                                       | 1,770,000  |      | 1,808,551     |
| New York, State Agency General Obligation Lease,                            Higher Education Revenue, Dormitory Authority, City University, Series                            A, 5.625%, 7/1/2016              |                                       | 1,500,000  |      | 1,641,810     |
| New York, State Agency General Obligation Lease,                            Higher Education Revenue, Dormitory Authority, Jamaica Hospital, Series                            F, 5.2%, 2/15/2016              |                                       | 1,000,000  |      | 1,021,780     |
| New York, State General Obligation, Tobacco                            Settlement Financing Corp., Series A-1, 5.25%, 6/1/2022 (a)                                                                             |                                       | 10,000,000 |      | 10,481,300    |
| New York, Tobacco Settlement Financing Corp., Series                            B-1C, 5.5%, 6/1/2019                                                                                                           |                                       | 5,500,000  |      | 5,851,395     |
| New York, Transportation/Tolls Revenue:                                                                                                                                                                        |                                       |
|                                                                                                                                                                                                           | Prerefunded, 5.625%, 4/1/2013 (a)          |       | 5,000,000 |          | 5,201,150 |
|                                                                                                                                                                                                           | Prerefunded, 5.75%, 4/1/2014 (a)           |       | 2,000,000 |          | 2,084,280 |
| New York, NY, General Obligation:                                                                                                                                                                              |                                       |
|                                                                                                                                                                                                           | Series G, 5.0%, 12/1/2023                  |       | 2,000,000 |          | 2,067,400 |
|                                                                                                                                                                                                           | Series D, 5.0%, 11/1/2024                  |       | 7,500,000 |          | 7,687,800 |
|                                                                                                                                                                                                           | Series F, Prerefunded, 5.25%, 8/1/2015 (a) |       | 50,000    |          | 50,824 |
| New York, NY, Municipal Water Finance Authority,                            Water & Sewer Systems Revenue, Series D, 5.0%, 6/15/2037                                                                       |                                       | 5,000,000  |      | 5,091,650     |
| New York, NY, Sales & Special Tax Revenue,                            Transitional Finance Authority:                                                                                                      |                                       |
|                                                                                                                                                                                                           | Series B, Prerefunded, 6.125%, 11/15/2014  |       | 1,645,000 |          | 1,765,776 |
|                                                                                                                                                                                                           | Series B, 6.125%, 11/15/2014               |       | 355,000   |          | 381,064 |
|                                                                                                                                                                                                           | Series B, Prerefunded, 6.125%, 11/15/2015  |       | 3,000,000 |          | 3,218,670 |
| Niagara Falls, NY, School District General                            Obligation, 5.6%, 6/15/2014 (a)                                                                                                          |                                       | 1,180,000  |      | 1,308,585     |
|                                                                                                                                                                                                                |
|                                                                                                                                                                                                           | **53,259,062**                             |
| **North Carolina 1.8%**                                                                                                                                                                                        |                                       |
| Charlotte, NC, Airport Revenue, AMT:                                                                                                                                                                           |                                       |
|                                                                                                                                                                                                           | Series B, 5.75%, 7/1/2013 (a)              |       | 2,480,000 |          | 2,572,653 |
|                                                                                                                                                                                                           | Series B, 5.875%, 7/1/2014 (a)             |       | 1,140,000 |          | 1,185,075 |
| North Carolina, Electric Revenue, Municipal Power                            Agency:                                                                                                                           |                                       |
|                                                                                                                                                                                                           | Series C, 5.375%, 1/1/2017                 |       | 1,000,000 |          | 1,020,810 |
|                                                                                                                                                                                                           | Series B, 6.375%, 1/1/2013                 |       | 3,000,000 |          | 3,162,030 |
|                                                                                                                                                                                                                |
|                                                                                                                                                                                                           | **7,940,568**                              |
| **North Dakota 0.8%**                                                                                                                                                                                          |                                       |
| Grand Forks, ND, Hospital & Healthcare Revenue,                            Altru Health Care System, 7.125%, 8/15/2024                                                                                     |                                       | 3,400,000  |      | **3,741,054** |
| **Ohio 1.3%**                                                                                                                                                                                                  |                                       |
| Green Springs, OH, Senior Care Revenue, St. Francis                            Health Care Center Project, Series A, 7.125%, 5/15/2025                                                                         |                                       | 6,000,000  |      | **5,806,140** |
| **Oregon 2.4%**                                                                                                                                                                                                |                                       |
| Oregon, State General Obligation Lease, Department of                            Administrative Services, Series A, Prerefunded, 6.25%, 5/1/2017                            (a)                                |                                       | 1,000,000  |      | 1,074,830     |
| Oregon, State Revenue Lease, Department of                            Administrative Services, Series A, Prerefunded, 6.25%, 5/1/2018                            (a)                                           |                                       | 1,000,000  |      | 1,074,830     |
| Portland, OR, Special Assessment Revenue, Downtown                            Waterfront:                                                                                                                      |                                       |
|                                                                                                                                                                                                           | Series A, 5.625%, 6/15/2015 (a)            |       | 3,100,000 |          | 3,276,514 |
|                                                                                                                                                                                                           | Series A, 5.75%, 6/15/2018 (a)             |       | 2,225,000 |          | 2,360,191 |
|                                                                                                                                                                                                                |                                            |            |           |               |  |  |  |

 

 

 

|                                                                                                                                                                                                             | Series A, 5.75%, 6/15/2019 (a)            |      | 2,820,000 |          | 2,991,343 |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------|-----------|-----------|---------------|-----------|
|                                                                                                                                                                                                                  |
|                                                                                                                                                                                                             | **10,777,708**                            |
| **Pennsylvania 1.7%**                                                                                                                                                                                            |                                      |
| Pennsylvania, Hospital & Healthcare Revenue,                            Economic Development Financing Authority, UPMC Health System, Series A,                            6.0%, 1/15/2031                   |                                      | 2,570,000 |      | 2,732,064     |
| Philadelphia, PA, Gas Works Revenue, Series A-1,                            5.0%, 9/1/2029 (a)                                                                                                                   |                                      | 5,000,000 |      | 5,081,150     |
|                                                                                                                                                                                                                  |
|                                                                                                                                                                                                             | **7,813,214**                             |
| **Puerto Rico 0.2%**                                                                                                                                                                                             |                                      |
| Commonwealth of Puerto Rico, Public Improvement,                            Series A, 5.25%, 7/1/2030                                                                                                            |                                      | 1,000,000 |      | **1,022,980** |
| **Rhode Island 0.9%**                                                                                                                                                                                            |                                      |
| Rhode Island, Special Assessment Revenue, Series A,                            6.125%, 6/1/2032                                                                                                                  |                                      | 4,000,000 |      | **4,086,960** |
| **South Carolina 2.7%**                                                                                                                                                                                          |                                      |
| Greenwood County, SC, Hospital & Healthcare                            Revenue, South Carolina Memorial Hospital, 5.5%, 10/1/2031                                                                            |                                      | 1,500,000 |      | 1,520,970     |
| South Carolina, Jobs Economic Development Authority,                            Hospital Facilities Revenue, Palmetto Health Alliance:                                                                           |                                      |
|                                                                                                                                                                                                             | Series C, Prerefunded, 7.0%, 8/1/2030     |      | 4,825,000 |          | 5,612,440 |
|                                                                                                                                                                                                             | Series C, 7.0%, 8/1/2030                  |      | 595,000   |          | 690,569   |
|                                                                                                                                                                                                             | Series A, Prerefunded, 7.375%, 12/15/2021 |      | 2,000,000 |          | 2,258,740 |
| South Carolina, Tobacco Settlement Revenue Management                            Authority, Series B, 6.0%, 5/15/2022                                                                                            |                                      | 2,000,000 |      | 2,050,340     |
|                                                                                                                                                                                                                  |
|                                                                                                                                                                                                             | **12,133,059**                            |
| **South Dakota 0.3%**                                                                                                                                                                                            |                                      |
| South Dakota, State Health & Educational                            Facilities Authority Revenue, Sanford Health, 5.0%,                            11/1/2027                                                 |                                      | 1,500,000 |      | **1,508,475** |
| **Tennessee 4.9%**                                                                                                                                                                                               |                                      |
| Clarksville, TN, Natural Gas Acquisition Corp., Gas                            Revenue, 5.0%, 12/15/2021                                                                                                         |                                      | 2,000,000 |      | 2,011,020     |
| Clarksville, TN, Public Building Authority Revenue,                            Tennessee Municipal Bond Fund, 3.96%*, 7/1/2034, Bank of America NA                            (b)                                |                                      | 300,000   |      | 300,000       |
| Memphis-Shelby County, TN, Airport Revenue, AMT,                            Series D, 6.25%, 3/1/2017 (a)                                                                                                        |                                      | 4,690,000 |      | 4,947,340     |
| Shelby County, TN, Health Educational & Housing                            Facility Board, Hospital Revenue, Methodist Health Care:                                                                          |                                      |
|                                                                                                                                                                                                             | EMT, 6.5%, 9/1/2026                       |      | 2,615,000 |          | 2,949,615 |
|                                                                                                                                                                                                             | Prerefunded, 6.5%, 9/1/2026               |      | 4,385,000 |          | 4,946,105 |
| Tennessee, Energy Acquisition Corp., Gas Revenue,                            Series A, 5.25%, 9/1/2019                                                                                                           |                                      | 7,000,000 |      | 7,264,110     |
|                                                                                                                                                                                                                  |
|                                                                                                                                                                                                             | **22,418,190**                            |
| **Texas 19.7%**                                                                                                                                                                                                  |                                      |
| Austin, TX, Sales & Special Tax Revenue, Hotel                            Occupancy Tax:                                                                                                                     |                                      |
|                                                                                                                                                                                                             | 6.0%, 11/15/2013 (a)                      |      | 3,190,000 |          | 3,346,916 |
|                                                                                                                                                                                                             | 6.0%, 11/15/2015 (a)                      |      | 3,480,000 |          | 3,651,181 |
|                                                                                                                                                                                                             | 6.0%, 11/15/2016 (a)                      |      | 3,625,000 |          | 3,803,314 |
| 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 |      | 3,947,990     |
| Carrollton, TX, Farmers Branch Independent School                            District, School Building, 4.75%, 2/15/2032                                                                                         |                                      | 5,000,000 |      | 4,911,150     |
| Dallas-Fort Worth, TX, Airport Revenue, International                            Airport, AMT, Series A, 5.875%, 11/1/2016 (a)                                                                                   |                                      | 6,500,000 |      | 6,872,320     |
| Granbury, TX, Independent School District, 5.0%,                            8/1/2024                                                                                                                             |                                      | 3,365,000 |      | 3,454,475     |
| Harris County, TX, Hospital & Healthcare Revenue,                            Health Facilities Development Corp., Memorial Hermann Healthcare                            Systems, Series A, 6.375%, 6/1/2029 |                                      | 5,500,000 |      | 6,045,710     |
| Houston, TX, Airport Revenue, People Mover Project,                            AMT, Series A, 5.5%, 7/15/2017 (a)                                                                                                |                                      | 3,300,000 |      | 3,303,003     |
| Houston, TX, Port Authority Revenue, Airport Revenue,                            AMT, Series A, 5.875%, 7/1/2014 (a)                                                                                             |                                      | 3,960,000 |      | 4,156,258     |
| Red River, TX, School District Revenue Lease, St.                            Mark's School Project, 6.0%, 8/15/2019                                                                                              |                                      | 5,390,000 |      | 5,617,189     |
| Socorro, TX, Independent School District, 5.0%,                            8/15/2025                                                                                                                             |                                      | 5,135,000 |      | 5,258,394     |
|                                                                                                                                                                                                                  |                                           |           |           |               |           |  |  |

 

 

 

| Tarrant County, TX, Cultural Educational Facilities                            Finance Corp. Revenue, Texas Health Resources, Series A, 5.0%,                            2/15/2026                   |                                                                                                                                                                                                           | 4,000,000       |      | 4,013,360      |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------|-----------|----------------|
| Tarrant County, TX, Hospital & Healthcare                            Revenue, Health Facilities Development Corp., 6.7%,                            11/15/2030                                   |                                                                                                                                                                                                           | 4,500,000       |      | 4,940,640      |
| Texas, Industrial Development Revenue, Waste Disposal                            Authority, AMT, Series A, 6.1%, 8/1/2024                                                                            |                                                                                                                                                                                                           | 2,000,000       |      | 2,061,820      |
| Texas, State General Obligation, College Student                            Loans, AMT, 5.0%, 8/1/2021                                                                                               |                                                                                                                                                                                                           | 4,015,000       |      | 4,015,482      |
| Texas, State Turnpike Authority, Dallas Northway                            Revenue, 5.5%, 1/1/2015 (a)                                                                                              |                                                                                                                                                                                                           | 14,605,000      |      | 14,974,506     |
| Texas, White Settlement, Independent School District,                            5.125%, 8/15/2026                                                                                                   |                                                                                                                                                                                                           | 5,035,000       |      | 5,184,640      |
|                                                                                                                                                                                                      |
|                                                                                                                                                                                                 | **89,558,348**                                                                                                                                                                                                 |
| **Virginia 0.2%**                                                                                                                                                                                    |                                                                                                                                                                                                           |
| Virginia, Tobacco Settlement Financing Corp., Series                            B-1, 5.0%, 6/1/2047                                                                                                  |                                                                                                                                                                                                           | 1,200,000       |      | **1,039,056**  |
| **Washington 5.5%**                                                                                                                                                                                  |                                                                                                                                                                                                           |
| Seattle, WA, Airport Revenue, AMT, Series B, 6.0%,                            2/1/2013 (a)                                                                                                           |                                                                                                                                                                                                           | 7,355,000       |      | 8,037,765      |
| Seattle, WA, Special Assessment Revenue,                            AMT:                                                                                                                             |                                                                                                                                                                                                           |
|                                                                                                                                                                                                 | Series B, 5.5%, 9/1/2011 (a)                                                                                                                                                                                   |            | 1,085,000 |           | 1,137,145 |
|                                                                                                                                                                                                 | Series B, 5.75%, 9/1/2013 (a)                                                                                                                                                                                  |            | 1,045,000 |           | 1,092,432 |
| Skagit County, WA, School District General                            Obligation, School District No. 1, Burlington Edison, 5.625%, 12/1/2014                            (a)                         |                                                                                                                                                                                                           | 1,570,000       |      | 1,669,507      |
| Snohomish County, WA, Electric Revenue, Public                            Utility District No. 1, 5.375%, 12/1/2024 (a)                                                                              |                                                                                                                                                                                                           | 3,000,000       |      | 3,135,960      |
| Washington, Electric Revenue, Energy Northwest                            Columbia Generating, Series B, 6.0%, 7/1/2018 (a)                                                                          |                                                                                                                                                                                                           | 3,000,000       |      | 3,263,190      |
| Washington, Hospital & Healthcare Revenue, Group                            Health Coop of Puget Sound, 5.375%, 12/1/2017 (a)                                                                    |                                                                                                                                                                                                           | 1,500,000       |      | 1,571,730      |
| Washington, State General Obligation, Series A, 5.5%,                            7/1/2016                                                                                                            |                                                                                                                                                                                                           | 4,835,000       |      | 4,988,946      |
|                                                                                                                                                                                                      |
|                                                                                                                                                                                                 | **24,896,675**                                                                                                                                                                                                 |
| **West Virginia 4.5%**                                                                                                                                                                               |                                                                                                                                                                                                           |
| West Virginia, Hospital & Healthcare Revenue,                            Hospital Finance Authority, Charleston Medical Center:                                                                  |                                                                                                                                                                                                           |
|                                                                                                                                                                                                 | Series A, 6.75%, 9/1/2022                                                                                                                                                                                      |            | 2,355,000 |           | 2,534,098 |
|                                                                                                                                                                                                 | 6.75%, 9/1/2030                                                                                                                                                                                                |            | 395,000   |           | 417,839 |
| West Virginia, Hospital Finance Authority, Charleston                            Medical Center:                                                                                                     |                                                                                                                                                                                                           |
|                                                                                                                                                                                                 | Prerefunded, 6.75%, 9/1/2022                                                                                                                                                                                   |            | 9,645,000 |           | 10,558,092 |
|                                                                                                                                                                                                 | Prerefunded, 6.75%, 9/1/2030                                                                                                                                                                                   |            | 3,605,000 |           | 3,946,285 |
| West Virginia, Water & Sewer Revenue, Water                            Development Authority, Series B, 5.25%, 11/1/2023 (a)                                                                     |                                                                                                                                                                                                           | 2,740,000       |      | 2,877,713      |
|                                                                                                                                                                                                      |
|                                                                                                                                                                                                 | **20,334,027**                                                                                                                                                                                                 |
| **Wisconsin 2.2%**                                                                                                                                                                                   |                                                                                                                                                                                                           |
| Badge, WI, Tobacco Asset Securitization Corp.,                            6.125%, 6/1/2027                                                                                                           |                                                                                                                                                                                                           | 3,980,000       |      | 4,074,843      |
| Wisconsin, Hospital & Healthcare Revenue, Health                            & Education Facilities Authority, Aurora Health Care, Inc., Series                            A, 5.6%, 2/15/2029 |                                                                                                                                                                                                           | 6,000,000       |      | 6,012,180      |
|                                                                                                                                                                                                      |
|                                                                                                                                                                                                 | **10,087,023**                                                                                                                                                                                                 |
|                                                                                                                                                                                                      |
| **Total Municipal Bonds and Notes**(Cost $646,124,828)                                                                                                                                               |                                                                                                                                                                                                           | **679,127,848** |
|                                                                                                                                                                                                 | **Municipal Inverse Floating Rate Notes                            23.1%**                                                                                                                                     |            |
| **Arizona 2.6%**                                                                                                                                                                                     |                                                                                                                                                                                                           |
| Phoenix, AZ, Industrial Development Authority, Single                            Family Mortgage Revenue, Series 2007-3, 5.625%, 5/1/2039 (c)                                                        |                                                                                                                                                                                                           | 11,250,000      |      | **11,910,849** |
|                                                                                                                                                                                                 | *Trust: Arizona, Puttable Floating Option, Tax                            Exempt Receipts, RITES-PA-1509, AMT,*

*144A, 9.685%, 5/1/2039, Leverage Factor at                            purchase date: 4 to 1* |            |      |           |   |
| **California 6.8%**                                                                                                                                                                                  |                                                                                                                                                                                                           |
| California, San Francisco Bay Area Toll Authority,                            Toll Bridge Revenue, Series F, 5.0%, 4/1/2031 (c)                                                                      |                                                                                                                                                                                                           | 10,000,000      |      | 10,284,200     |
|                                                                                                                                                                                                      |                                                                                                                                                                                                                |                 |           |                |  |  |  |  |

 

 

 

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

*7.49%, 4/1/2014, 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      |                                     | 10,295,200    |
|                                                                                                                                                                          | *Trust:                            California, Puttable Floating Option, Tax Exempt Receipts,                            RITES-PA-1505, 144A, 7.22%, 8/1/2025, Leverage Factor at purchase date:                            4 to 1*                                                                        |            |                                     |          |   |
| California, State General Obligation, 5.0%, 6/1/2023                            (a) (c)                                                                                       |                                                                                                                                                                                                                                                                                                       | 10,000,000      |                                     | 10,426,550    |
|                                                                                                                                                                          | *Trust: California, State General Obligation,                            Series 1932, 144A, 7.49%, 6/1/2015,*

*Leverage Factor at purchase date: 4 to                            1*                                                                                                                       |            |                                     |          |   |
|                                                                                                                                                                               |
|                                                                                                                                                                          | **31,005,950**                                                                                                                                                                                                                                                                                             |
| **Illinois 4.0%**                                                                                                                                                             |                                                                                                                                                                                                                                                                                                       |
| Chicago, IL, General Obligation, Series A, 5.0%,                            1/1/2024 (a) (c)                                                                                  |                                                                                                                                                                                                                                                                                                       | 10,360,000      |                                     | 10,692,427    |
|                                                                                                                                                                          | *Trust: Chicago, IL, UBS Municipal (CRVS), Various                            States, 144A, 7.46%, 1/1/2024,*

*Leverage Factor at purchase date: 4 to                            1*                                                                                                                       |            |                                     |          |   |
| Aurora, IL, Single Family Mortgage Revenue, Series C,                            5.5%, 6/1/2045 (c)                                                                           |                                                                                                                                                                                                                                                                                                       | 7,000,000       |                                     | 7,356,650     |
|                                                                                                                                                                          | *Trust: Illinois, Puttable Floating Option, Tax                            Exempt Receipts, RITES-PA-1499, 144A,*

*AMT, 9.1%, 6/1/2045, Leverage Factor at purchase                            date: 4 to 1*                                                                                              |            |                                     |          |   |
|                                                                                                                                                                               |
|                                                                                                                                                                          | **18,049,077**                                                                                                                                                                                                                                                                                             |
| **Nevada 2.2%**                                                                                                                                                               |                                                                                                                                                                                                                                                                                                       |
| Henderson, NV, Health Care Facility Revenue, Catholic                            Healthcare West, Series B, 5.25%, 7/1/2031 (c)                                               |                                                                                                                                                                                                                                                                                                       | 10,000,000      |                                     | **9,997,200** |
|                                                                                                                                                                          | *Trust: Nevada, Puttable Floating Option, Tax                            Exempt Receipts, RITES-PA-1494, 144A,*

*8.19%, 7/1/2031, Leverage Factor at purchase date:                            4 to 1*                                                                                                    |            |                                     |          |   |
| **New York 5.4%**                                                                                                                                                             |                                                                                                                                                                                                                                                                                                       |
| New York, State Dormitory Authority Revenues, State                            Supported Debt, University Dormitory Facilities, 5.0%, 7/1/2025                            (c) |                                                                                                                                                                                                                                                                                                       | 5,425,000       |                                     | 5,601,291     |
|                                                                                                                                                                          | *Trust: New York, State Dormitory Authority                            Revenues, Secondary Issues, Series 1971-1,*

*144A, 7.339%, 7/1/2027, 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       |                                     | 8,303,856     |
|                                                                                                                                                                          | *Trust: New York, State Dormitory Authority                            Revenues, Secondary Issues, Series 1971-2,*

*144A, 7.34%, 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      |                                     | 10,419,600    |
|                                                                                                                                                                          | *Trust: New York, State Dormitory Authority                            Revenues, Secondary Issues, Series 1955-3,*

*144A, 7.43%, 3/15/2015,Leverage Factor at purchase                            date: 4 to 1*                                                                                           |            |                                     |          |   |
|                                                                                                                                                                               |
|                                                                                                                                                                          | **24,324,747**                                                                                                                                                                                                                                                                                             |
| **Texas 2.1%**                                                                                                                                                                |                                                                                                                                                                                                                                                                                                       |
| Texas, Municipal Gas Acquisition & Supply Corp.                            I, Gas Supply Revenue, Series B, 4.141%**, 12/15/2017 (c)                                      |                                                                                                                                                                                                                                                                                                       | 10,000,000      |                                     | **9,718,300** |
|                                                                                                                                                                          | *Trust: Texas, Municipal Gas Acquisition &                            Supply Corp. I, Gas Supply Revenue,*

*RITES-PA-1448, 144A, 3.992%, 12/15/2017, Leverage                            Factor at purchase date: 2 to 1*                                                                             |            |                                     |          |   |
|                                                                                                                                                                               |
| **Total Municipal Inverse Floating Rate                            Notes**(Cost $106,194,584)                                                                                 |                                                                                                                                                                                                                                                                                                       | **105,006,123** |
|                                                                                                                                                                          | **%                            of****Net Assets**                                                                                                                                                                                                                                                          |            | **Value                            ($)** |
|                                                                                                                                                                               |
| **Total Investment Portfolio**(Cost $752,319,412)                                                                                                                             | 172.6                                                                                                                                                                                                                                                                                                      |            | **784,133,971**                          |
| **Other Assets and Liabilities, Net**                                                                                                                                         | (14.3)                                                                                                                                                                                                                                                                                                     |            | **(64,915,650)**                         |
| **Preferred Shares, at Redemption                            Value**                                                                                                          | (58.3)                                                                                                                                                                                                                                                                                                     |            | **(265,000,000)**                        |
|                                                                                                                                                                               |
| **Net Assets Applicable to Common                            Shareholders**                                                                                                   | 100.0                                                                                                                                                                                                                                                                                                      |            | **454,218,321**                          |
|                                                                                                                                                                          | *For information on the Fund’s policies                            regarding the valuation of investments and other significant accounting                            policies, please refer to the Fund’s most recent semi-annual or                            annual financial statements.* |
| ***                                                                                                                                                                           | *Variable rate demand notes are securities whose                            interest rates are reset periodically at market levels. These                            securities are often payable on demand and are shown at their current                            rate as of August 31, 2007.*         |
|                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                            |                 |                                          |               |        |  |  |  |  |

 

 

 

| ****                                                                                                                                                                                                                                                                                                                                                                 | *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, 2007.* |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *(a)*                                                                                                                                                                                                                                                                                                                                                                | *Bond is insured by one of these                            companies:*                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                 | ***Insurance Coverage***                                                                                                                                                                                                                                                                                                   | ***As a % of Total Investment                            Portfolio*** |
| *Ambac Financial Group, Inc.*                                                                                                                                                                                                                                                                                                                                        | *14.6*                                                                                                                                                                                                                                                                                                                     |
| *Financial Guaranty Insurance Company*                                                                                                                                                                                                                                                                                                                               | *11.0*                                                                                                                                                                                                                                                                                                                     |
| *Financial Security Assurance, Inc.*                                                                                                                                                                                                                                                                                                                                 | *14.8*                                                                                                                                                                                                                                                                                                                     |
| *MBIA Corp.*                                                                                                                                                                                                                                                                                                                                                         | *9.7*                                                                                                                                                                                                                                                                                                                      |
| *(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 are used to pay principal and interest on tax-exempt issues                            and to retire the bonds in full at the earliest refunding                            date.* |
| *RITES: Residual Interest Tax Exempt                            Security.*                                                                                                                                                                                                                                                                                           |

 

 

| **ITEM 2.** | **CONTROLS AND PROCEDURES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|-------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|        | (a)                                     The Chief                            Executive and Financial Officers concluded that the Registrant’s                            Disclosure Controls and Procedures are effective based on the                            evaluation of the Disclosure Controls and Procedures as of a date                            within 90 days of the filing date of this report.                                                                                                                                                                               |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|        | (b)                                     There have been                            no changes in the registrant’s internal control over financial                            reporting that occurred during the registrant’s last half-year                            (the registrant’s second fiscal half-year in the case of the                            annual report) that has materially affected, or is reasonably likely to                            materially affect, the registrant’s internal controls over                            financial reporting. |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| **ITEM 3.** | **EXHIBITS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|        | Certification pursuant to Rule 30a-2(a) under the                            Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and                            attached hereto as Exhibit 99.CERT.                                                                                                                                                                                                                                                                                                                                                                                                                                     |

 

 

**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: | October 17, 2007 |
|-------|------------------|

 

 

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: | October 17, 2007 |
|-------|------------------|

 

 

| By: | /s/Paul Schubert |
|-----|------------------|

|   | Paul Schubert |
|--------|---------------|

Chief Financial Officer and Treasurer

 

| Date: | October 17, 2007 |
|-------|------------------|