N-Q/A 1 dnqa.htm AMENDMENT TO FORM N-Q Amendment to Form N-Q

 

 

United States

Securities and Exchange Commission

Washington, D.C. 20549

 

 

Amended

Form N-Q

 

 

Quarterly Schedule of Portfolio Holdings of

Registered Management Investment Companies

811-2677

(Investment Company Act File Number)

Federated Municipal Securities Fund, Inc.

(Exact Name of Registrant as Specified in Charter)

Federated Investors Funds

4000 Ericsson Drive

Warrendale, PA 15086-7561

(Address of Principal Executive Offices)

(412) 288-1900

(Registrant’s Telephone Number)

John W. McGonigle, Esquire

Federated Investors Tower

1001 Liberty Avenue

Pittsburgh, Pennsylvania 15222-3779

(Name and Address of Agent for Service)

(Notices should be sent to the Agent for Service)

Date of Fiscal Year End: 3/31/10

Date of Reporting Period: Quarter ended 12/31/09

 

 

 

 

Item 1. Schedule of Investments

 

Federated Municipal Securities Fund, Inc.

Portfolio of Investments

December 31, 2009 (unaudited)

Principal
Amount		 Value
MUNICIPAL BONDS – 96.2%
Alabama – 0.3%
$1,400,000 Camden, AL IDB, Exempt Facilities Refunding Revenue Bonds (Series 2003A), 6.125% (Weyerhaeuser Co.)/(United States Treasury PRF 12/1/2013@100), 12/1/2024 1,641,472
Arizona – 2.0%
1,000,000 Arizona Board of Regents, System Revenue Bonds (Series 2008C), 6.00% (Arizona State University)/(Original Issue Yield: 6.12%), 7/1/2028 1,142,920
2,000,000 Arizona Transportation Board, Transportation Excise Tax Revenue Bonds (Series 2009), 5.00% (Maricopa County, AZ Regional Area Road Fund), 7/1/2023 2,189,060
2,000,000 Phoenix, AZ Civic Improvement Corp. - Wastewater System, Senior Lien Wastewater System Revenue Bonds (Series 2008), 5.50%, 7/1/2024 2,240,380
4,000,000 Salt River Project, AZ Agricultural Improvement & Power District, Electric System Revenue Bonds (Series 2009A), 5.00% (Original Issue Yield: 5.03%), 1/1/2034 4,210,200
1,810,000 Show Low, AZ IDA, Hospital Revenue Bonds, 5.00% (Navapache Regional Medical Center)/(Radian Asset Assurance, Inc. INS), 12/1/2030 1,607,678
TOTAL 11,390,238
Arkansas – 0.2%
1,000,000 Jefferson County, AR, Hospital Revenue Improvement and Refunding Bonds (Series 2001), 5.80% (Jefferson Regional Medical Center, AR)/(Original Issue Yield: 5.90%), 6/1/2021 1,016,510
California – 16.0%
500,000 ABAG Finance Authority for Non-Profit Corporations, CA, Revenue Bonds, 6.125% (Southern California Presbyterian Homes)/(Original Issue Yield: 6.25%), 11/15/2032 476,645
500,000 Anaheim, CA Public Financing Authority, Lease Revenue Bonds (Series 1997C), 6.00% (Anaheim Public Improvements Project)/(FSA, Inc. INS), 9/1/2016 555,715
1,000,000 Anaheim, CA Public Financing Authority, Revenue Bonds (Series 2009-A), 5.00% (Anaheim, CA Electric System), 10/1/2027 1,058,370
1,000,000 Bay Area Toll Authority, CA, San Francisco Bay Area Toll Bridge Revenue Bonds (Series 2009F-1), 5.625%, 4/1/2044 1,058,050
500,000 Bell Community Redevelopment Agency, CA, Refunding Tax Allocation Revenue Bonds, 5.50% (Radian Asset Assurance, Inc. INS), 10/1/2023 505,855
590,000 Blythe, CA Financing Authority, Sewer Revenue Bonds (Series 1998), 5.75%, 4/1/2028 503,783
1,000,000 California Educational Facilities Authority, Revenue Bonds (Series 2005A), 5.00% (Pomona College), 7/1/2045 1,023,630
425,000 California Health Facilities Financing Authority, Health Facility Revenue Bonds (Series 2004I), 4.95% TOBs (Catholic Healthcare West), Mandatory Tender 7/1/2014 451,907
1,000,000 California Health Facilities Financing Authority, Revenue Bonds (Series 1998), 5.40% (Northern California Presbyterian Homes, Inc.)/(Original Issue Yield: 5.417%), 7/1/2028 943,080
500,000 California Infrastructure & Economic Development Bank, Revenue Bonds (Series 2000A), 5.75% (Scripps Research Institute)/(Original Issue Yield: 5.85%), 7/1/2030 502,125
1,000,000 California Infrastructure & Economic Development Bank, Revenue Bonds (Series 2001B), 5.50% (Kaiser Permanente), 8/1/2031 1,000,910
1,000,000 California Infrastructure & Economic Development Bank, Revenue Bonds (Series 2008), 5.25% (Walt Disney Family Museum)/(Original Issue Yield: 5.50%), 2/1/2038 995,590
2,665,000 California State Department of Water Resources Power Supply Program, Revenue Bonds (Series 2005F), 5.00%, 5/1/2022 2,836,599
1,000,000 California State Department of Water Resources, Water System Revenue Bonds (Series 2008AE), 5.00% (Central Valley Project), 12/1/2029 1,066,420
950,000 California State Public Works Board, Lease Revenue Bonds (Series 2007B), 4.75% (California Community Colleges)/(National Public Finance Guarantee Corporation INS), 3/1/2032 792,148
15,000 California State, 5.125% (Original Issue Yield: 5.40%), 6/1/2025 15,020
20,000 California State, UT GO Bonds, 5.75% (Original Issue Yield: 6.25%), 3/1/2019 20,059
170,000 California State, UT GO Bonds, 5.75%, 5/1/2030 171,409
5,500,000 California State, UT GO Various Purpose Bonds, 5.75% (Original Issue Yield: 5.95%), 4/1/2031 5,554,450
2,000,000 California State, Various Purpose GO Bonds, 6.00%, 11/1/2039 2,043,440
2,000,000 California State, Various Purpose UT GO Bonds, 5.00%, 6/1/2037 1,804,340
1,000,000 California State, Various Purpose UT GO Bonds, 5.125% (Original Issue Yield: 5.16%), 4/1/2023 1,015,930
5,000,000 California State, Various Purpose UT GO Bonds, 5.25%, 10/1/2029 4,879,500
1
Principal
Amount		 Value
$4,000,000 California State, Various Purpose UT GO Bonds, 5.75% (Original Issue Yield: 5.85%), 4/1/2029 4,094,640
1,000,000 California State, Various Purpose UT GO Bonds, 6.50%, 4/1/2033 1,079,160
1,000,000 California Statewide Communities Development Authority, COP, 5.50% (Sutter Health)/(FSA, Inc. INS)/(Original Issue Yield: 5.77%), 8/15/2018 1,013,400
1,495,000 California Statewide Communities Development Authority, COPs, 6.00% (Sutter Health)/(FSA, Inc. INS), 8/15/2013 1,516,528
1,930,000 California Statewide Communities Development Authority, COPs, 6.00% (Sutter Health)/(FSA, Inc. INS), 8/15/2015 1,958,467
455,000 1 California Statewide Communities Development Authority, Revenue Bonds (Series 2001), 6.75% (St. Mark's School), 6/1/2028 441,232
1,000,000 California Statewide Communities Development Authority, Revenue Bonds (Series 2005A), 5.25% (Daughters of Charity Health System), 7/1/2035 863,080
810,000 California Statewide Communities Development Authority, Revenue Bonds, 5.75% (Los Angeles Orthopedic Hospital Foundation)/(AMBAC INS), 6/1/2030 787,223
500,000 1 California Statewide Communities Development Authority, Revenue Bonds, 6.50% (Turningpoint School)/(United States Treasury PRF 5/1/2010@102), 11/1/2031 520,255
1,000,000 Eastern Municipal Water District of Riverside County, CA, Water & Sewer Revenue Fixed Rate COPs (Series 2008H), 5.00% (Original Issue Yield: 5.11%), 7/1/2033 1,011,740
1,000,000 El Centro, CA Financing Authority, Ins Hospital Revenue Bonds (Series 2001), 5.25% (El Centro Regional Medical Center)/(California Mortgage Insurance GTD)/(Original Issue Yield: 5.32%), 3/1/2018 1,008,710
1,000,000 Foothill/Eastern Transportation Corridor Agency, CA, Toll Road Refunding Revenue Bonds, 5.75% (Original Issue Yield: 5.774%), 1/15/2040 889,490
1,000,000 Fresno Joint Powers Financing Authority, Lease Revenue Bonds (Series 2008C), 5.00% (Assured Guaranty Corp. INS), 4/1/2038 993,930
1,800,000 Golden State Tobacco Securitization Corp., CA, Tobacco Settlement Asset-Backed Bonds (Series 2007A-1), 5.75%, 6/1/2047 1,336,968
2,000,000 Golden State Tobacco Securitization Corp., CA, Tobacco Settlement Asset-Backed Revenue Bonds (Series 2003A-1), 6.75% (United States Treasury PRF 6/1/2013@100)/(Original Issue Yield: 7.00%), 6/1/2039 2,347,160
1,000,000 Long Beach, CA Bond Financing Authority, Plaza Parking Facility Lease Revenue Bonds, 5.25% (Original Issue Yield: 5.54%), 11/1/2021 1,018,460
1,000,000 Long Beach, CA USD, UT GO Bonds (Series 2008A), 5.75%, 8/1/2033 1,080,220
1,000,000 Los Angeles, CA Community College District, GO Bonds (2001 Election 2008 Series E-1), 5.00%, 8/1/2026 1,046,840
1,000,000 Los Angeles, CA Department of Water & Power, Power System Revenue Bonds (Series 2009A), 5.00% (Original Issue Yield: 5.07%), 7/1/2034 1,033,680
1,000,000 Los Angeles, CA Department of Water & Power, Power System Revenue Bonds (Series 2009A), 5.00% (Original Issue Yield: 5.10%), 7/1/2039 1,029,950
1,110,000 Los Angeles, CA USD, UT GO Bonds (Series 2009D), 5.00% (Original Issue Yield: 5.35%), 1/1/2034 1,114,163
2,000,000 Los Angeles, CA USD, UT GO Bonds (Series 2009D), 5.20%, 7/1/2029 2,082,140
1,000,000 Los Angeles, CA Wastewater System, Refunding Revenue Bonds (Series 2009A), 5.75%, 6/1/2034 1,103,930
1,500,000 Manhattan Beach, CA, COPs (Series 2004), 5.00% (AMBAC INS), 1/1/2036 1,503,225
1,000,000 Metropolitan Water District of Southern California, Water Revenue Refunding Bonds (Series 2009C), 5.00%, 7/1/2031 1,058,120
1,000,000 Oxnard, CA Union High School District, Refunding UT GO Bonds (Series 2001A), 6.20% (National Public Finance Guarantee Corporation INS), 8/1/2030 1,076,490
500,000 Perris, CA Public Financing Authority, Tax Allocation Revenue Bonds (Series 2001A), 5.75% (Original Issue Yield: 5.85%), 10/1/2031 505,385
1,950,000 Poway, CA USD, Special Tax Bonds (Series 2005), 5.125% (Community Facilities District No. 6 (4S Ranch))/(Original Issue Yield: 5.21%), 9/1/2035 1,702,545
1,730,000 Redondo Beach, CA USD, UT GO Bonds (Series 2008A), 5.125%, 8/1/2037 1,730,519
6,000,000 Regents of the University of California Medical Center, Pooled Revenue Bonds (Series 2008D), 5.00%, 5/15/2024 6,278,100
1,000,000 Regents of University of California, General Revenue Bonds (Series 2009O), 5.75%, 5/15/2034 1,120,660
1,500,000 Regents of University of California, General Revenue Bonds, Series A, 5.125% (AMBAC INS), 5/15/2020 1,597,425
2,400,000 Roseville, CA Natural Gas Financing Authority, Gas Revenue Bonds (Series 2007), 5.00%, 2/15/2028 2,223,312
3,000,000 Roseville, CA Natural Gas Financing Authority, Gas Revenue Bonds, 5.00%, 2/15/2025 2,850,090
1,500,000 Sacramento County, CA Airport System, Airport System Senior Revenue Bonds (Series 2009B), 5.50% (Assured Guaranty Corp. INS)/(Original Issue Yield: 5.60%), 7/1/2034 1,560,900
1,000,000 San Bernardino County, CA Housing Authority, Multifamily Mortgage Revenue Bonds (Series 2001A), 6.70% (Glen Aire Park)/(GNMA COL Home Mortgage Program GTD), 12/20/2041 1,070,680
349,000 1 San Bernardino County, CA Housing Authority, Subordinated Revenue Bonds, 7.25% (Glen Aire Park & Pacific Palms), 4/15/2042 180,677
1,000,000 San Diego County, CA, COP, 5.25% (University of San Diego)/(Original Issue Yield: 5.47%), 10/1/2021 1,017,080
200,000 San Francisco, CA City & County Airport Commission, Revenue Refunding Bonds (Issue 34D), 5.25% (Assured Guaranty Corp. INS), 5/1/2025 213,466
2
Principal
Amount		 Value
$1,000,000 Santa Barbara CCD, CA, UT GO Bonds (Series 2008A), 5.25%, 8/1/2028 1,060,910
3,000,000 Southern California Public Power Authority (Southern Transmission System), Transmission Project Revenue Bonds (2009 Subordinate Refunding Series A), 5.00%, 7/1/2023 3,220,200
400,000 Stockton, CA Community Facilities District No. 2001-1, Special Tax Revenue Bonds, 6.375% (Spanos Park West)/(United States Treasury PRF 9/1/2012@102)/(Original Issue Yield: 6.43%), 9/1/2032 464,452
1,000,000 Torrance, CA, Hospital Revenue Bonds (Series 2001 A), 5.50% (Torrance Memorial Medical Center)/(Original Issue Yield: 5.65%), 6/1/2031 1,006,910
1,000,000 Trustees of the California State University, Systemwide Revenue Bonds (Series 2009A), 6.00%, 11/1/2040 1,073,010
1,000,000 Vallejo, CA USD, UT GO Bonds, 5.90% (National Public Finance Guarantee Corporation INS), 2/1/2021 1,060,780
1,000,000 Vista, CA Community Development Commission, Tax Allocation Bonds (Series 2001), 5.80% (Vista Redevelopment Project Area)/(Original Issue Yield: 5.85%), 9/1/2030 1,000,040
340,000 Watsonville, CA, INS Hospital Revenue Refunding Bonds (Series 1996A), 6.20% (Watsonville Community Hospital)/(Escrowed In Treasuries COL)/(Original Issue Yield: 6.225%), 7/1/2012 366,734
TOTAL 93,588,051
Colorado – 1.8%
4,000,000 Boulder Valley, CO School District RE No. 2, UT GO Bonds, 5.00%, 12/1/2034 4,233,880
710,000 Colorado Health Facilities Authority, Health Facilities Revenue Bonds (Series 2004A), 5.25% (Evangelical Lutheran Good Samaritan Society)/(Original Issue Yield: 5.48%), 6/1/2034 641,329
710,000 Colorado Health Facilities Authority, Health Facilities Revenue Bonds (Series 2005), 5.25% (Evangelical Lutheran Good Samaritan Society), 6/1/2023 697,902
1,590,000 Colorado State Higher Education Capital Construction Lease Purchase Financing Program, COPs (Series 2008), 5.50% (Original Issue Yield: 5.60%), 11/1/2027 1,695,194
4,000,000 Fort Collins, CO, PCR Refunding Bonds (Series 2007), 4.70% (Anheuser-Busch Cos., Inc.), 9/1/2040 3,478,200
TOTAL 10,746,505
District of Columbia – 1.2%
3,000,000 District of Columbia Hospital Authority, Hospital Revenue Bonds (Series 2008), 5.25% (Children's Hospital Obligated Group)/(Assured Guaranty Corp. INS)/(Original Issue Yield: 5.45%), 7/15/2038 3,004,020
2,440,000 District of Columbia Water & Sewer Authority, Public Utility Subordinated Lien Revenue Bonds (Series 2008A), 5.00% (Assured Guaranty Corp. INS), 10/1/2034 2,469,134
1,310,000 District of Columbia, Revenue Bonds (Series 2000A), 6.00% (World Wildlife Fund, Inc.)/(AMBAC INS), 7/1/2016 1,352,457
TOTAL 6,825,611
Florida – 4.2%
1,445,000 Broward County, FL Airport System, Airport System Revenue Refunding Bonds (Series 2009O), 5.375% (Original Issue Yield: 5.48%), 10/1/2029 1,485,171
665,000 Florida State Board of Education Administration, UT GO Capital Outlay Bonds, 9.125% (Florida State)/(Escrowed In Treasuries COL)/(Original Issue Yield: 9.173%), 6/1/2014 859,965
3,455,000 Florida State Board of Education Administration, UT GO Capital Outlay Bonds, 9.125% (Florida State)/(Original Issue Yield: 9.173%), 6/1/2014 3,932,481
3,000,000 Florida State, UT GO Bonds, Broward County Expressway Authority, 10.00% (Escrowed In Treasuries COL)/(Original Issue Yield: 10.105%), 7/1/2014 3,624,240
5,000,000 Miami-Dade County, FL Aviation, Revenue Bonds (Series 2008B), 5.00% (Assured Guaranty Corp. INS), 10/1/2028 5,167,850
1,000,000 Miami-Dade County, FL Expressway Authority, Toll System Revenue Bonds, 6.00% (FGIC and National Public Finance Guarantee Corporation INS), 7/1/2013 1,033,390
1,000,000 Orlando, FL Utilities Commission, System Revenue Refunding Bonds (Series 2009B), 5.00%, 10/1/2033 1,039,730
5,000,000 Orlando, FL, Senior Tourist Development Tax Revenue Bonds (Series 2008A), 5.125% (6th Cent Contract Payments)/(Assured Guaranty Corp. INS)/(Original Issue Yield: 5.34%), 11/1/2027 5,197,400
1,870,000 Tallahassee, FL Consolidated Utility System, Revenue Bonds (Series 2007), 5.00%, 10/1/2032 1,916,077
100,000 Village Center Community Development District, FL, Revenue Refunding Bond (Series A), 5.50% (National Public Finance Guarantee Corporation INS), 11/1/2013 105,131
TOTAL 24,361,435
Georgia – 2.2%
5,000,000 Athens-Clarke County, GA Water & Sewerage, Revenue Bonds (Series 2008), 5.625% (Original Issue Yield: 5.78%), 1/1/2033 5,447,300
2,000,000 Burke County, GA Development Authority, PCRBs (Series 2008A), 5.50% (Oglethorpe Power Corp.), 1/1/2033 2,055,980
1,000,000 Georgia State, UT GO Bonds (Series 2009B), 5.00%, 1/1/2026 1,119,050
1,000,000 Municipal Electric Authority of Georgia, Project One Subordinated Bonds (Series 2008A), 5.25%, 1/1/2021 1,110,360
3
Principal
Amount		 Value
$3,000,000 Municipal Electric Authority of Georgia, Project One Subordinated Bonds (Series 2008D), 5.50% (Original Issue Yield: 5.80%), 1/1/2026 3,234,120
TOTAL 12,966,810
Hawaii – 0.4%
2,000,000 Hawaii State, UT GO Bonds (Series 2006D1), 5.00% (FSA, Inc. INS), 3/1/2025 2,144,140
Illinois – 2.2%
355,000 Chicago, IL Board of Education, COPs (Series A), 6.25% (National Public Finance Guarantee Corporation INS), 1/1/2011 373,133
3,000,000 Chicago, IL Water Revenue, Second Lien Water Refunding Revenue Bonds (Series 2008), 5.00% (FSA, Inc. INS), 11/1/2028 3,152,820
3,000,000 Chicago, IL, UT GO Bonds, 5.25%, 1/1/2027 3,201,660
2,000,000 Chicago, IL, UT GO Bonds, 5.25%, 1/1/2028 2,127,460
100,000 Illinois Department Central Management Services, COPs, 6.15% (Original Issue Yield: 6.20%), 7/1/2013 100,904
2,145,000 Illinois Finance Authority, Revenue Refunding Bonds (Series 2007), 5.00% (Loyola University of Chicago), 7/1/2022 2,201,650
450,000 Illinois State, UT GO Bonds, 5.25%, 10/1/2018 491,018
125,000 Posen, IL, UT GO Bonds, 4.20% (National Public Finance Guarantee Corporation INS), 12/1/2017 125,869
130,000 Posen, IL, UT GO Bonds, 4.30% (National Public Finance Guarantee Corporation INS), 12/1/2018 129,672
140,000 Posen, IL, UT GO Bonds, 4.40% (National Public Finance Guarantee Corporation INS), 12/1/2019 138,874
175,000 University of Illinois, COP (Series B), 5.25% (United States Treasury PRF 8/15/2011@100), 8/15/2021 187,409
400,000 University of Illinois, COPs (Series A), 5.50% (United States Treasury PRF 8/15/2011@100), 8/15/2017 429,972
TOTAL 12,660,441
Indiana – 2.2%
1,000,000 Indiana Development Finance Authority, Environmental Improvement Revenue Bonds, 5.25% TOBs (Marathon Oil Corp.) Mandatory Tender 12/2/2011 1,055,980
2,200,000 Indiana Health Facility Financing Authority, Revenue Bonds (Series 2004A), 5.375% (Deaconess Hospital)/(AMBAC INS), 3/1/2029 2,213,266
1,005,000 Indiana Municipal Power Agency, Revenue Bonds (Series B), 5.25%, 1/1/2018 1,048,557
1,500,000 Indiana State Office Building Commission Capitol Complex, Revenue Bonds (Series 1990A: Senate Avenue Parking Facility), 7.40% (National Public Finance Guarantee Corporation INS)/(Original Issue Yield: 7.488%), 7/1/2015 1,798,830
100,000 Indiana State Toll Road Commission, Revenue Bonds, 9.00% (Escrowed In Treasuries COL)/(Original Issue Yield: 10.50%), 1/1/2015 122,402
4,000,000 Indianapolis, IN Gas Utility Distribution System, Second Lien Revenue Refunding Bonds (Series 2008C), 5.25% (Assured Guaranty Corp. INS), 6/1/2019 4,481,960
110,000 Marion County, IN Convention and Recreational Facilities Authority, Revenue Refunding Bond (Series A), 5.00% (National Public Finance Guarantee Corporation INS)/(Original Issue Yield: 5.30%), 6/1/2021 110,799
2,000,000 St. Joseph County, IN Hospital Authority, Health Facilities Revenue Bonds (Series 2005), 5.375% (Madison Center Obligated Group), 2/15/2034 1,584,920
500,000 Westfield Washington, IN Schools, Revenue Bonds, 5.50% (United States Treasury PRF 7/15/2011@100), 1/15/2022 537,400
TOTAL 12,954,114
Kansas – 0.4%
1,010,000 Kansas State Development Finance Authority, Health Facilities Revenue Bonds (Series 2007L), 5.125% (Stormont-Vail HealthCare, Inc.)/(National Public Finance Guarantee Corporation INS), 11/15/2032 963,500
1,150,000 University of Kansas Hospital Authority, Health Facilities Revenue Bonds, 5.50% (KU Health System)/(United States Treasury PRF 9/1/2012@100)/(Original Issue Yield: 5.62%), 9/1/2022 1,286,792
TOTAL 2,250,292
Kentucky – 0.6%
3,000,000 Kentucky Turnpike Authority, Economic Development Road Revenue Bonds (Series 2008A), 5.00%, 7/1/2023 3,246,960
Louisiana – 0.2%
1,500,000 St. John the Baptist Parish, LA, Revenue Bonds (Series 2007A), 5.125% (Marathon Oil Corp.), 6/1/2037 1,346,265
Massachusetts – 2.5%
4,000,000 Massachusetts Bay Transportation Authority General Transportation System, Assessment Bonds (Series 2008A), 5.25%, 7/1/2034 4,321,400
170,000 Massachusetts Bay Transportation Authority General Transportation System, Special Assessment Bonds, 5.75%, 7/1/2016 174,260
1,000,000 Massachusetts HEFA, Revenue Bonds (Series 2002D), 6.50% (Milford Regional Medical Center)/(United States Treasury PRF 7/15/2012@101), 7/15/2023 1,141,860
4,550,000 Massachusetts HEFA, Revenue Bonds (Series 2005E), 5.00% (Emerson Hospital)/(Radian Asset Assurance, Inc. INS), 8/15/2025 3,746,061
5,000,000 Massachusetts State HFA, Single Family Housing Mortgage Revenue Bonds (Series 147), 4.60%, 12/1/2025 5,015,000
TOTAL 14,398,581
4
Principal
Amount		 Value
Michigan – 2.8%
$3,560,000 Detroit, MI Water Supply System, Refunding Revenue Bonds (Series 2006C), 5.00% (FSA, Inc. INS), 7/1/2029 3,560,000
4,000,000 Detroit, MI, UT GO Bonds (Series 2008-A), 5.00% (Assured Guaranty Corp. INS), 4/1/2028 3,667,560
1,000,000 Dexter, MI Community Schools, UT GO Bonds, 5.10% (FGIC and National Public Finance Guarantee Corporation INS), 5/1/2018 1,041,930
1,500,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (Series 2002A), 6.00% (Oakwood Obligated Group), 4/1/2022 1,523,235
1,000,000 Michigan State Hospital Finance Authority, Refunding Revenue Bonds (Series 2002A), 5.50% (Crittenton Hospital Medical Center)/(Original Issue Yield: 5.67%), 3/1/2022 1,003,370
2,470,000 Michigan State Housing Development Authority, SFM Revenue Bonds (Series 2009A), 5.35%, 6/1/2022 2,541,852
2,900,000 Michigan State Strategic Fund, Revenue Refunding PCRBs (Series C), 5.45% (Detroit Edison Co.), 9/1/2029 2,910,295
TOTAL 16,248,242
Mississippi – 1.5%
8,000,000 Mississippi State, UT GO Bonds (Series 2007B), 5.00%, 12/1/2024 8,737,680
Missouri – 0.2%
1,335,000 Missouri Development Finance Board, Infrastructure Facilities Revenue Bonds (Series 2005A), 5.00% (Branson, MO), 6/1/2035 1,193,850
100,000 Stone County Missouri Reorganized School District, UT GO Refunding Bonds, 7.60% (National Public Finance Guarantee Corporation INS), 3/1/2010 101,161
TOTAL 1,295,011
Nebraska – 0.4%
2,000,000 Nebraska Public Power District, General Revenue Bonds (Series 2008B), 5.00% (Original Issue Yield: 5.15%), 1/1/2033 2,063,860
Nevada – 1.0%
4,000,000 Clark County, NV School District, LT GO Building Bonds (Series 2008A), 5.00%, 6/15/2025 4,167,840
500,000 Clark County, NV School District, UT GO Bonds (Series A), 7.00% (National Public Finance Guarantee Corporation INS)/(Original Issue Yield: 7.05%), 6/1/2010 513,250
1,000,000 Henderson, NV, Health Facility Revenue Bonds (Series 2004A), 5.625% (Catholic Healthcare West)/(Original Issue Yield: 5.72%), 7/1/2024 1,027,340
245,000 Henderson, NV, Local Improvement District No. T-16 LT Obligation Improvement Bonds, 5.10% (Falls at Lake Las Vegas LID No. T-16)/(Original Issue Yield: 5.15%), 3/1/2022 110,365
585,000 Henderson, NV, Local Improvement District No. T-16 LT Obligation Improvement Bonds, 5.125% (Falls at Lake Las Vegas LID No. T-16)/(Original Issue Yield: 5.20%), 3/1/2025 262,636
TOTAL 6,081,431
New Hampshire – 0.3%
1,685,000 New Hampshire Higher Educational & Health Facilities Authority, Healthcare System Revenue Bonds (Series 2004), 5.375% (Covenant Health Systems)/(Original Issue Yield: 5.50%), 7/1/2024 1,704,765
New Jersey – 0.3%
2,000,000 New Jersey Turnpike Authority, Revenue Bonds (Series 2009H), 5.00% (Original Issue Yield: 5.069%), 1/1/2036 2,031,880
New Mexico – 0.9%
2,000,000 Albuquerque Bernalillo County, NM Water Utility Authority, Joint Water & Sewer System Improvement Revenue Bonds (Series 2009A-1), 5.25% (Original Issue Yield: 5.34%), 7/1/2034 2,156,620
3,000,000 University of New Mexico, Subordinate Lien System Improvement Revenue Bonds (Series 2007A), 5.00% (FSA, Inc. INS), 6/1/2036 3,053,820
TOTAL 5,210,440
New York – 7.4%
2,000,000 Hempstead (town), NY IDA, Civic Facility Revenue Bonds, 5.25% (Hofstra University), 7/1/2018 2,128,820
4,000,000 New York City, NY IDA, CPI PILOT Revenue Bonds (Series 2006), 0.637% (Yankee Stadium LLC)/(FGIC INS), 3/1/2021 2,852,640
3,970,000 New York City, NY Municipal Water Finance Authority, Water & Sewer System Revenue Bonds (Fiscal 2002 Series A), 5.00%, 6/15/2032 4,003,150
3,000,000 New York City, NY Municipal Water Finance Authority, Water & Sewer System Revenue Bonds (Fiscal 2005 Series C), 5.00%, 6/15/2030 3,109,950
270,000 New York City, NY Municipal Water Finance Authority, Water & Sewer System Revenue Bonds (Series 2009A), 5.75% (Original Issue Yield: 5.90%), 6/15/2040 301,455
4,000,000 New York City, NY Transitional Finance Authority, Building Aid Revenue Bonds (Fiscal 2009 S-1), 5.50% (TFA State/School Building Aid)/(Original Issue Yield: 5.60%), 7/15/2028 4,396,920
3,570,000 New York City, NY, UT GO Bonds (Series 2009E), 5.00%, 8/1/2026 3,787,520
5,000,000 New York City, NY, UT GO Bonds (Series 2009I-1), 5.375% (Original Issue Yield: 5.55%), 4/1/2036 5,316,000
2,000,000 1,2 New York State Dormitory Authority, Revenue Bonds (ROLs II R-11777), 12.1975% (New York State Personal Income Tax Revenue Bond Fund), 2/15/2017 2,616,500
5
Principal
Amount		 Value
$1,060,000 New York State Dormitory Authority, Revenue Bonds (Series 2007B), 5.25% (Health Quest Systems, Inc. Obligated Group)/(Assured Guaranty Corp. INS), 7/1/2027 1,126,769
2,000,000 New York State Dormitory Authority, Revenue Bonds (Series 2008A), 5.00% (New York State Personal Income Tax Revenue Bond Fund), 3/15/2028 2,141,500
2,500,000 New York State Thruway Authority, Revenue Bonds (Series 2007A), 5.25% (New York State Personal Income Tax Revenue Bond Fund), 3/15/2026 2,734,800
1,985,000 Suffolk County, NY Water Authority, Water System Revenue Bonds (Series 1994), 6.00% (National Public Finance Guarantee Corporation INS), 6/1/2014 2,204,243
2,000,000 1,2 Triborough Bridge & Tunnel Authority, NY, DRIVERs (Series 3063), 11.252%, 5/15/2016 2,462,720
4,000,000 Triborough Bridge & Tunnel Authority, NY, General Revenue Bonds (Series 2008A), 5.00% (Original Issue Yield: 5.10%), 11/15/2037 4,115,520
TOTAL 43,298,507
North Carolina – 9.4%
1,190,000 Appalachian State University, NC, Parking System Revenue Bonds, 5.625% (United States Treasury PRF 7/15/2010@101)/(Original Issue Yield: 5.65%), 7/15/2025 1,235,446
2,000,000 Cape Fear Public Utility Authority, NC, Water & Sewer System Revenue Bonds (Series 2008), 5.00%, 8/1/2028 2,166,700
1,000,000 Charlotte, NC Water & Sewer System, Water & Sewer Revenue Bonds (Series 2008), 5.00%, 7/1/2028 1,097,130
1,000,000 Charlotte, NC Water & Sewer System, Water & Sewer Revenue Bonds (Series 2009), 5.25%, 7/1/2030 1,118,960
335,000 Charlotte, NC, UT GO Bonds, 5.00%, 8/1/2017 391,712
1,385,000 Charlotte, NC, UT GO Refunding Bonds, 5.00%, 8/1/2020 1,589,481
500,000 Charlotte-Mecklenburg Hospital Authority, NC, Health Care Revenue & Refunding Bonds (Series 2007A), 5.00% (Carolinas HealthCare System)/(Original Issue Yield: 5.09%), 1/15/2031 502,640
500,000 Charlotte-Mecklenburg Hospital Authority, NC, Health Care Revenue Refunding Bonds (Series 2008A), 5.25% (Carolinas HealthCare System), 1/15/2024 524,020
500,000 Craven County, NC, COPs (Series 2007), 5.00% (National Public Finance Guarantee Corporation INS), 6/1/2027 517,830
1,000,000 Cumberland County, NC, Refunding COP (Series 2009B), 5.00%, 12/1/2024 1,086,460
530,000 Durham, NC, Refunding UT GO Bonds, 5.00%, 4/1/2020 599,244
1,000,000 Fayetteville, NC Public Works Commission, Revenue Bonds (Series 1999), 5.70% (United States Treasury PRF 3/1/2010@101)/(Original Issue Yield: 5.79%), 3/1/2019 1,019,030
1,000,000 Forsyth County, NC, GO School Bonds (Series 2008), 4.375% (Original Issue Yield: 4.45%), 5/1/2027 1,047,250
500,000 Greenville, NC Combined Enterprise System, Revenue Bonds (Series 2008A), 5.00% (FSA, Inc. INS), 11/1/2025 533,880
800,000 High Point, NC Combined Enterprise System, Revenue Bonds (Series 2008), 5.00% (FSA, Inc. INS), 11/1/2028 852,864
500,000 Iredell County, NC, COPs (Series 2008), 5.125% (FSA, Inc. INS)/(Original Issue Yield: 5.13%), 6/1/2027 536,150
500,000 Johnston Memorial Hospital Authority, NC, FHA INS Mortgage Revenue Bonds (Series 2008), 5.25% (Johnston Memorial Hospital)/(FSA, Inc. INS), 10/1/2024 525,920
1,660,000 Johnston Memorial Hospital Authority, NC, FHA INS Mortgage Revenue Bonds (Series 2008), 5.25% (Johnston Memorial Hospital)/(FSA, Inc. INS), 10/1/2036 1,686,527
2,000,000 New Hanover County, NC, GO Refunding Bonds (Series 2009A), 5.00%, 12/1/2020 2,332,860
2,000,000 North Carolina Capital Facilities Finance Agency, Educational Facilities Revenue Bonds (Series 2009), 5.00% (Wake Forest University), 1/1/2038 2,106,620
1,000,000 North Carolina Capital Facilities Finance Agency, Revenue Bonds (Series 2005A), 5.00% (Duke University), 10/1/2041 1,037,320
5,000,000 North Carolina Capital Facilities Finance Agency, Revenue Bonds (Series 2009B), 5.00% (Duke University), 10/1/2038 5,299,750
500,000 North Carolina Eastern Municipal Power Agency, Power System Refunding Revenue Bonds (Series 2003C), 5.375% (Original Issue Yield: 5.57%), 1/1/2017 530,645
500,000 North Carolina Eastern Municipal Power Agency, Power System Revenue Bonds (Series 1999D), 6.70%, (United States Treasury PRF 1/1/2010@101), 1/1/2019 505,000
500,000 North Carolina Eastern Municipal Power Agency, Power System Revenue Bonds (Series 2009A), 5.50%, 1/1/2026 528,705
2,915,000 North Carolina Eastern Municipal Power Agency, Power System Revenue Bonds (Series 2009C), 5.00%, 1/1/2026 2,967,878
500,000 North Carolina Medical Care Commission, Health Care Facilities First Mortgage Revenue Bonds (Series 2001), 6.625% (Moravian Homes, Inc.)/(United States Treasury PRF 4/1/2011@101)/(Original Issue Yield: 7.00%), 4/1/2031 541,095
250,000 North Carolina Medical Care Commission, Health Care Facilities First Mortgage Revenue Bonds (Series 2005A), 6.00% (Pennybyrn at Maryfield), 10/1/2023 203,860
1,500,000 North Carolina Medical Care Commission, Health Care Facilities First Mortgage Revenue Bonds (Series 2006A), 5.00% (The Pines at Davidson), 1/1/2036 1,354,755
500,000 North Carolina Medical Care Commission, Health Care Facilities First Mortgage Revenue Bonds, 6.25% (Arbor Acres Community)/(United States Treasury PRF 3/1/2012@101)/(Original Issue Yield: 6.40%), 3/1/2027 559,900
6
Principal
Amount		 Value
$500,000 North Carolina Medical Care Commission, Health Care Facilities First Mortgage Revenue Bonds, 6.875% (Presbyterian Homes, Inc.)/(United States Treasury PRF 10/1/2010@101)/(Original Issue Yield: 7.00%), 10/1/2021 529,420
1,000,000 North Carolina Medical Care Commission, Health Care Facilities Revenue Bonds (Series 1999), 6.25% (Stanly Memorial Hospital Project)/(Original Issue Yield: 6.40%), 10/1/2019 1,006,430
1,205,000 North Carolina Medical Care Commission, Health Care Facilities Revenue Bonds (Series 2004A), 5.25% (Cleveland Community Healthcare)/(AMBAC INS), 7/1/2021 1,220,882
1,230,000 North Carolina Medical Care Commission, Health Care Facilities Revenue Bonds, 5.50% (Hugh Chatham Memorial Hospital)/(Radian Asset Assurance, Inc. INS), 10/1/2019 1,227,134
625,000 North Carolina Medical Care Commission, Health Care Facilities Revenue Bonds, 5.50% (Scotland Memorial Hospital)/(Radian Asset Assurance, Inc. INS)/(Original Issue Yield: 5.593%), 10/1/2019 626,306
500,000 North Carolina Medical Care Commission, Health Care Facilities Revenue Refunding Bonds (Series 2008D), 6.25% (University Health Systems of Eastern Carolina)/(Original Issue Yield: 6.75%), 12/1/2033 547,130
2,000,000 North Carolina Medical Care Commission, Health Care Housing Revenue Bonds (Series 2004A), 5.80% (Arc of North Carolina Projects), 10/1/2034 1,918,720
1,000,000 North Carolina Medical Care Commission, Hospital Revenue Bonds (Series 2000), 5.50% (Northeast Medical Center)/(United States Treasury PRF 11/1/2010@101)/(Original Issue Yield: 5.74%), 11/1/2025 1,051,160
1,000,000 North Carolina Medical Care Commission, Hospital Revenue Bonds, 6.125% (Southeastern Regional Medical Center)/(Original Issue Yield: 6.25%), 6/1/2019 1,017,890
250,000 North Carolina Medical Care Commission, Retirement Facilities First Mortgage Revenue Bonds (Series 2002), 6.25% (Forest at Duke)/(United States Treasury PRF 9/1/2012@100)/(Original Issue Yield: 6.35%), 9/1/2021 282,820
500,000 North Carolina Medical Care Commission, Retirement Facilities First Mortgage Revenue Bonds (Series 2003A), 6.375% (Givens Estates)/(United States Treasury PRF 7/1/2013@101)/(Original Issue Yield: 6.50%), 7/1/2023 591,895
250,000 North Carolina Medical Care Commission, Retirement Facilities First Mortgage Revenue Refunding Bonds (Series 2007), 5.125% (Forest at Duke), 9/1/2032 235,758
1,000,000 North Carolina Municipal Power Agency No. 1, Electric Revenue Bonds (Series 1999B), 6.50% (United States Treasury PRF 1/1/2010@101)/(Original Issue Yield: 6.73%), 1/1/2020 1,010,000
500,000 North Carolina State, Grant Anticipation Revenue Vehicle Bonds (Series 2007), 5.00% (National Public Finance Guarantee Corp. INS), 3/1/2019 551,620
1,000,000 Northern Hospital District of Surry County, NC, Health Care Facilities Revenue Refunding Bonds (Series 2001), 5.10% (Northern Hospital of Surry County)/(Radian Asset Assurance, Inc. INS)/(Original Issue Yield: 5.242%), 10/1/2021 959,780
1,020,000 Onslow County, NC, School UT GO Bonds, 5.00%, 4/1/2021 1,115,982
1,000,000 Pitt County, NC, COPs, 5.00% (National Public Finance Guarantee Corp. INS), 4/1/2025 1,044,410
500,000 Pitt County, NC, Refunding Bonds, 5.25% (Pitt County Memorial Hospital)/(Escrowed In Treasuries COL)/(Original Issue Yield: 5.85%), 12/1/2021 530,215
500,000 Raleigh & Durham, NC Airport Authority, Revenue Bonds (Series 2005A), 5.00% (AMBAC INS), 5/1/2030 510,995
500,000 Randolph County, NC, COPs (Series 2007), 5.00% (AMBAC INS), 2/1/2027 517,145
850,000 University of North Carolina at Chapel Hill, Refunding General Revenue Bonds (Series 2005A), 5.00%, 12/1/2034 885,717
500,000 University of North Carolina at Chapel Hill, Revenue Bonds (Series 2007), 5.00%, 12/1/2036 524,625
500,000 University of North Carolina System Pool, Revenue Bonds (Series 2006B), 4.25% (National Public Finance Guarantee Corp. INS)/(Original Issue Yield: 4.38%), 10/1/2033 451,010
500,000 University of North Carolina Wilmington, COPs (Series 2008), 5.00% (Assured Guaranty Corp. INS), 6/1/2022 540,800
525,000 University of North Carolina Wilmington, COPs, 5.25% (FGIC and National Public Finance Guarantee Corp. INS), 6/1/2022 555,923
250,000 Wilmington, NC Storm Water Fee, Revenue Bonds, 5.00% (AMBAC INS), 6/1/2033 256,373
250,000 Winston-Salem, NC Water & Sewer System, Water & Sewer System Revenue Bonds (Series 2009), 5.00%, 6/1/2028 274,592
TOTAL 54,984,364
Ohio – 2.5%
5,000,000 American Municipal Power-Ohio, Inc., Revenue Bonds (Series 2008A), 5.25% (American Municipal Power, Prairie State Energy Campus Project), 2/15/2028 5,266,400
1,700,000 Cleveland, OH Municipal School District, UT GO Bonds, 5.25% (FSA, Inc. INS), 12/1/2024 1,790,967
1,660,000 Ohio HFA, Residential Mortgage Revenue Bonds (Series 2008F), 5.25% (GNMA COL Home Mortgage Program GTD), 9/1/2028 1,722,698
1,345,000 Ohio State Building Authority, Revenue Bonds (Series 2002A), 5.00% (Adult Correctional Building Fund Projects), 4/1/2022 1,420,737
85,000 Ohio State Water Development Authority, Revenue Bonds (Series I), 7.00% (Escrowed In Treasuries COL)/(Original Issue Yield: 7.45%), 12/1/2014 97,187
1,800,000 Ohio State, Hospital Revenue Refunding Bonds (Series 2008A), 5.25% (Cleveland Clinic)/(Original Issue Yield: 98.376%), 1/1/2033 1,836,504
2,000,000 Ohio State, Infrastructure Improvement GO Bonds (Series 2008A), 5.375% (Original Issue Yield: 5.50%), 9/1/2028 2,213,360
TOTAL 14,347,853
7
Principal
Amount		 Value
Oklahoma – 0.2%
$1,000,000 Tulsa, OK Industrial Authority, Revenue Bonds, Series A, 6.00% (University of Tulsa)/(National Public Finance Guarantee Corporation INS), 10/1/2016 1,124,950
Oregon – 0.3%
1,500,000 Clackamas County, OR Hospital Facilities Authority, Revenue Refunding Bonds (Series 2001), 5.25% (Legacy Health System)/(Original Issue Yield: 5.50%), 5/1/2021 1,538,250
Pennsylvania – 8.7%
3,890,000 Allegheny County, PA HDA, Hospital Revenue Bonds (Series 2008A), 5.00% (UPMC Health System), 6/15/2018 4,137,949
1,280,000 Allegheny County, PA HDA, Refunding Revenue Bonds (Series 1998A), 5.125% (Jefferson Regional Medical Center, PA)/(Original Issue Yield: 5.40%), 5/1/2029 1,136,666
1,085,000 Allegheny County, PA IDA, Environmental Improvement Refunding Revenue Bonds (Series 2005), 5.50% (United States Steel Corp.), 11/1/2016 1,062,573
1,435,000 Allegheny County, PA, UT GO Bonds, 5.00% (Assured Guaranty Corp. INS), 12/1/2033 1,482,900
3,000,000 Clarion County, PA IDA, Water Facility Revenue Refunding Bonds (Series 2009), 5.50% (Pennsylvania American Water Co.), 12/1/2039 3,045,660
1,700,000 1,2 Commonwealth of Pennsylvania, JPMorgan Chase DRIVERs (Series 3350), 14.786%, 3/15/2017 2,438,888
5,000,000 Delaware Valley, PA Regional Finance Authority, Revenue Bonds, 5.75%, 7/1/2017 5,706,750
3,000,000 Pennsylvania EDFA, Exempt Facilities Revenue Bonds (Series 2009), 7.00% (Allegheny Energy Supply Company LLC), 7/15/2039 3,234,600
5,000,000 Pennsylvania HFA, SFM Revenue Bonds (Series 2009-105C), 4.875%, 10/1/2034 4,988,950
1,000,000 Pennsylvania State Higher Education Facilities Authority, Revenue Bonds (Series 2001A), 6.00% (UPMC Health System)/(Original Issue Yield: 6.10%), 1/15/2022 1,032,420
5,000,000 Pennsylvania State Higher Education Facilities Authority, Revenue Bonds (Series 2001A), 6.25% (UPMC Health System), 1/15/2016 5,200,000
1,500,000 Pennsylvania State Higher Education Facilities Authority, Revenue Bonds (Series 2009A), 5.25% (University of Pennsylvania Health System), 8/15/2022 1,597,620
2,000,000 Pennsylvania State Higher Education Facilities Authority, Student Housing Revenue Bonds, 5.125% (Foundation for Indiana University of Pennsylvania)/(Syncora Guarantee, Inc. INS), 7/1/2039 1,581,140
3,000,000 Pennsylvania State Turnpike Commission, Subordinate Revenue Bonds (Series 2008 B-1), 5.50%, 6/1/2033 3,137,520
1,000,000 Pennsylvania State Turnpike Commission, Turnpike Subordinated Revenue Bonds (Series 2008A), 5.00% (Assured Guaranty Corp. INS), 6/1/2033 1,011,600
5,000,000 Philadelphia, PA School District, UT GO Bonds (Series 2008E), 6.00% (Original Issue Yield: 6.30%), 9/1/2038 5,344,150
1,000,000 Philadelphia, PA Water & Wastewater System, Water and Wastewater Revenue Bonds (Series 2009A), 5.25% (Original Issue Yield: 5.29%), 1/1/2032 1,023,030
1,250,000 Philadelphia, PA Water & Wastewater System, Water and Wastewater Revenue Bonds (Series 2009A), 5.25% (Original Issue Yield: 5.33%), 1/1/2036 1,258,912
1,000,000 Pittsburgh & Allegheny County PA Public Auditorium Hotel Room Authority, Public Auditorium Hotel Room Revenue Bonds, 5.00% (AMBAC INS)/(Original Issue Yield: 5.15%), 2/1/2017 1,002,660
135,000 Pittsburgh, PA Water & Sewer Authority, Revenue Refunding Bonds, 6.00% (Escrowed In Treasuries COL)/(Original Issue Yield: 7.65%), 9/1/2016 159,431
1,000,000 University of Pittsburgh, University Capital Project Bonds (Series 2009B), 5.50%, 9/15/2024 1,143,990
TOTAL 50,727,409
Puerto Rico – 0.4%
1,000,000 Commonwealth of Puerto Rico, Public Improvement GO Bonds (Series 2008A), 5.50%, 7/1/2018 1,033,930
1,000,000 Puerto Rico Electric Power Authority, Power Refunding Revenue Bonds (Series 2007VV), 5.25% (National Public Finance Guarantee Corporation INS), 7/1/2029 1,008,530
TOTAL 2,042,460
Rhode Island – 0.5%
2,500,000 Rhode Island State Health and Educational Building Corp., Higher Education Facilities Revenue Bonds (Series 2007), 5.00% (Brown University), 9/1/2037 2,621,450
South Carolina – 0.4%
220,000 Piedmont Municipal Power Agency, SC, Revenue Bond (Series 2004A), 6.50% (FGIC INS)/(Original Issue Yield: 6.625%), 1/1/2016 249,584
280,000 Piedmont Municipal Power Agency, SC, Revenue Bond (Series A), 6.50% (Escrowed In Treasuries COL)/(Original Issue Yield: 6.625%), 1/1/2016 348,754
580,000 South Carolina Jobs EDA, Health System Revenue Bonds (Series A), 5.625% (Bon Secours Health System)/(United States Treasury PRF 11/15/2012@100)/(Original Issue Yield: 5.84%), 11/15/2030 654,698
8
Principal
Amount		 Value
$1,000,000 South Carolina State Public Service Authority (Santee Cooper), Revenue Obligations (Series 2008A), 5.375% (Original Issue Yield: 5.60%), 1/1/2028 1,107,050
TOTAL 2,360,086
South Dakota – 0.8%
2,225,000 South Dakota Housing Development Authority, Home Ownership Mortgage Revenue Bonds (Series 2002C), 5.35%, 5/1/2022 2,362,282
2,310,000 South Dakota Housing Development Authority, Multiple Purpose Revenue Bonds (Series 2002A), 5.15% (FSA, Inc. INS), 11/1/2020 2,364,193
TOTAL 4,726,475
Tennessee – 1.4%
3,000,000 Shelby County, TN Health Education & Housing Facilities Board, Hospital Revenue Bonds, 6.50% (Methodist Healthcare)/(United States Treasury PRF 9/1/2012@100)/(Original Issue Yield: 6.57%), 9/1/2021 3,431,340
2,500,000 Sullivan County, TN Health Educational & Housing Facilities Board, Revenue Bonds, 6.25% (Wellmont Health System)/(United States Treasury PRF 9/1/2012@101)/(Original Issue Yield: 6.45%), 9/1/2022 2,835,350
1,000,000 Tennessee Housing Development Agency, Home Ownership Program Bonds (Issue 2009-2), 4.70%, 7/1/2027 1,013,190
1,000,000 Tennessee State, GO Bonds (Series 2009A), 5.00%, 5/1/2027 1,092,180
TOTAL 8,372,060
Texas – 8.1%
2,000,000 Comal County, TX HFDC, Revenue Bonds (Series 2002A), 6.125% (McKenna Memorial Hospital)/(United States Treasury PRF 2/1/2013@100)/(Original Issue Yield: 6.28%), 2/1/2022 2,301,600
5,000,000 Dallas, TX Area Rapid Transit, Senior Lien Sales Tax Revenue Bonds, 5.25%, 12/1/2038 5,337,100
3,000,000 Dallas, TX, Revenue Refunding Bonds (Series 2007), 4.50% (Dallas, TX Waterworks & Sewer System)/(AMBAC INS)/(Original Issue Yield: 4.56%), 10/1/2036 2,944,860
2,200,000 Harris County, TX HFDC, Hospital Revenue Bonds, Series 1997A, 6.00% (Memorial Hospital System)/(National Public Finance Guarantee Corporation INS), 6/1/2011 2,296,206
4,000,000 Harris County, TX HFDC, Hospital Revenue Bonds, Series 1997A, 6.00% (Memorial Hospital System)/(National Public Finance Guarantee Corporation INS), 6/1/2012 4,269,720
2,000,000 Harris County, TX, Toll Road Senior Lien Revenue & Refunding Bonds (Series 2008B), 5.00% (Original Issue Yield: 5.08%), 8/15/2033 2,064,940
500,000 Harris County-Houston, TX Sports Authority, Sr. Lien Revenue Bonds (Series G), 5.25% (National Public Finance Guarantee Corporation INS)/(Original Issue Yield: 5.47%), 11/15/2021 500,460
2,000,000 Houston, TX Airport System, Senior Lien Revenue & Refunding Bonds (Series 2009A), 5.50% (Original Issue Yield: 5.67%), 7/1/2034 2,138,520
1,000,000 Humble, TX ISD, UT GO Bonds, 5.00% (FGIC and National Public Finance Guarantee Corporation INS), 2/15/2024 1,049,630
250,000 Lower Colorado River Authority, TX, Revenue Bonds, 6.00% (United States Treasury COL)/(Original Issue Yield: 6.619%), 1/1/2017 299,575
2,300,000 Port of Corpus Christi, TX IDC, Revenue Refunding Bonds (Series C), 5.40% (Valero Energy Corp.), 4/1/2018 2,258,416
2,165,000 Richardson, TX Hospital Authority, Refunding & Improvement Hospital Revenue Bonds, 5.875% (Richardson Regional Medical Center)/(Original Issue Yield: 6.05%), 12/1/2024 2,003,772
1,000,000 Sam Rayburn, TX Municipal Power Agency, Refunding Revenue Bonds (Series 2002A), 6.00%, 10/1/2021 1,025,310
3,515,000 San Antonio, TX Electric & Gas System, Revenue Refunding Bonds (Series 2009A), 5.25%, 2/1/2027 3,841,157
1,000,000 Socorro, TX ISD, School Building UT GO Bonds (Series 2006A), 5.00% (PSFG GTD), 8/15/2026 1,080,570
1,250,000 1,2 Spring Branch, TX ISD, JPMorgan Chase DRIVERs (Series 3377), 15.615%, 2/1/2015 1,584,400
200,000 Texas Public Building Authority, Revenue Refunding Bonds, 6.00% (United States Treasury COL), 8/1/2014 228,990
5,175,000 Texas State Department of Housing & Community Affairs, Residential Mortgage Revenue Bonds (Series 2009A), 5.30%, 7/1/2034 5,276,999
1,525,000 Texas State Public Finance Authority, GO Bonds (Series 2007), 5.00% (Texas State), 10/1/2027 1,649,959
5,000,000 Texas State Transportation Commission, Mobility Fund Revenue Bonds (Series 2007), 4.75% (Texas State), 4/1/2027 5,243,350
TOTAL 47,395,534
Utah – 2.1%
8,875,000 Salt Lake City, UT Hospital Authority, Hospital Revenue Refunding Bonds (Series A), 8.125% (IHC Hospitals Inc., UT)/(Escrowed In Treasuries COL)/(Original Issue Yield: 8.17%), 5/15/2015 10,343,724
2,000,000 Utah County, UT IDA, Environmental Improvement Revenue Bonds, 5.05% TOBs (Marathon Oil Corp.), Mandatory Tender 11/1/2011 2,100,560
TOTAL 12,444,284
Vermont – 0.2%
1,000,000 Burlington, VT Airport, Revenue Bonds, Series A, 5.00% (National Public Finance Guarantee Corporation INS), 7/1/2023 1,005,730
9
Principal
Amount		 Value
$3,000 Vermont Educational and Health Buildings Financing Agency, Revenue Bond, 0.50% TOBs (Middlebury College), Optional Tender 11/1/2010 3,001
TOTAL 1,008,731
Virginia – 2.9%
5,000,000 Richmond, VA, UT GO Bonds, 5.50% (FSA, Inc. INS)/(Original Issue Yield: 5.58%), 1/15/2018 5,262,300
3,000,000 Tobacco Settlement Financing Corp., VA, Revenue Bonds, 5.625% (United States Treasury PRF 6/1/2015@100)/(Original Issue Yield: 5.78%), 6/1/2037 3,530,790
3,900,000 Virginia Peninsula Port Authority, Coal Terminal Revenue Refunding Bonds (Series 2003), 6.00% (Brinks Co. (The)), 4/1/2033 3,956,394
4,000,000 Virginia Resources Authority, Clean Water State Revolving Fund Subordinated Revenue Bonds (Series 2008), 5.00%, 10/1/2027 4,407,440
TOTAL 17,156,924
Washington – 1.9%
5,595,000 Washington State Convention & Trade Center, Lease Revenue COPs, 5.125% (National Public Finance Guarantee Corporation INS)/(Original Issue Yield: 5.30%), 7/1/2013 5,612,512
2,000,000 Washington State Health Care Facilities Authority, Revenue Bonds (Series 2009A), 6.50% (Swedish Health Services)/(Original Issue Yield: 6.73%), 11/15/2033 2,088,640
1,150,000 Washington State Health Care Facilities Authority, Revenue Bonds, 5.00% (Group Health Cooperative)/(Radian Asset Assurance, Inc. INS), 12/1/2036 953,465
2,000,000 1,2 Washington State, UT GO Bonds (ROLs II-R11609), 11.82857%, 1/1/2016 2,415,800
TOTAL 11,070,417
West Virginia – 0.3%
2,200,000 Pleasants County, WV County Commission, PCR Refunding Bonds (Series 2007F), 5.25% (Allegheny Energy Supply Company LLC), 10/15/2037 2,019,600
Wisconsin – 4.9%
1,000,000 Marinette County, WI, UT GO Refunding Bonds, 6.50% (United States Treasury PRF), 9/1/2018 1,041,460
1,570,000 Wisconsin Housing & EDA, Housing Revenue Bonds (Series 2002C), 5.35% (National Public Finance Guarantee Corporation INS), 11/1/2022 1,585,151
6,000,000 Wisconsin State General Fund Appropriation, Revenue Bonds (Series 2009A), 6.00% (Wisconsin State)/(Original Issue Yield: 6.02%), 5/1/2033 6,626,340
3,000,000 Wisconsin State HEFA, 6.625% (ProHealth Care, Inc.)/(Original Issue Yield: 6.87%), 2/15/2039 3,225,960
5,500,000 Wisconsin State HEFA, Refunding Revenue Bonds, 5.75% (Wheaton Franciscan HealthCare)/(United States Treasury PRF 2/15/2012@101)/(Original Issue Yield: 5.96%), 8/15/2025 6,122,655
1,630,000 Wisconsin State HEFA, Revenue Bonds, 6.00% (Agnesian Healthcare, Inc.)/(Original Issue Yield: 6.15%), 7/1/2030 1,633,928
1,740,000 Wisconsin State HEFA, Revenue Bonds, 6.00% (SynergyHealth, Inc.)/(Original Issue Yield: 6.10%), 11/15/2023 1,803,266
2,000,000 1,2 Wisconsin State, UT GO Bonds (ROLs II-R11604), 10.82329%, 5/1/2016 2,355,440
4,000,000 Wisconsin State, UT GO Bonds (Series 2008C), 5.00%, 5/1/2028 4,257,560
TOTAL 28,651,760
TOTAL MUNICIPAL BONDS
(IDENTIFIED COST $544,742,455)		 560,801,848
SHORT-TERM MUNICIPALS – 2.6%;3
California – 1.0%
2,500,000 ABAG Finance Authority for Non-Profit Corporations, CA, Oshman Family JCC (Series 2007) Daily VRDNs (Albert L. Schultz Jewish Community Center)/(Bank of America N.A. LOC), 0.210%, 1/1/2010 2,500,000
3,050,000 California Health Facilities Financing Authority, (Series 2003D) Weekly VRDNs (Stanford Hospital & Clinics)/(FSA, Inc. INS)/(Dexia Credit Local LIQ), 0.350%, 1/6/2010 3,050,000
TOTAL 5,550,000
Massachusetts – 0.9%
5,200,000 Commonwealth of Massachusetts, Consolidated Loan (Series 2006B) Daily VRDNs (Bank of America N.A. LIQ), 0.240%, 1/1/2010 5,200,000
Michigan – 0.2%
1,270,000 Michigan State Hospital Finance Authority, (Series 2007) Weekly VRDNs (Henry Ford Health System, MI)/(JPMorgan Chase Bank, N.A. LOC), 0.210%, 1/6/2010 1,270,000
Pennsylvania – 0.5%
2,050,000 Lehigh County, PA General Purpose Authority, (Series B of 2008) Daily VRDNs (Lehigh Valley Health Network)/(Assured Guaranty Corp. INS)/(Wachovia Bank N.A. LIQ), 0.210%, 1/1/2010 2,050,000
10
Principal
Amount		 Value
$1,070,000 Philadelphia, PA Authority for Industrial Development Daily VRDNs (Newcourtland Elder Services)/(PNC Bank, N.A. LOC), 0.250%, 1/1/2010 1,070,000
TOTAL 3,120,000
TOTAL SHORT-TERM MUNICIPALS
(AT AMORTIZED COST)		 15,140,000
TOTAL INVESTMENTS — 98.8%
(IDENTIFIED COST $559,882,455)4		 575,941,848
OTHER ASSETS AND LIABILITIES - NET — 1.2%5 7,197,133
TOTAL NET ASSETS — 100% $583,138,981

At December 31, 2009, the Fund holds no securities that are subject to the federal alternative minimum tax (AMT).

1 Denotes a restricted security that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) is subject to a contractual restriction on public sales. At December 31, 2009, these restricted securities amounted to $15,015,912, which represented 2.6% of total net assets.
2 Denotes a restricted security that may be resold without restriction to “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933 and that the Fund has determined to be liquid under criteria established by the Fund's Board of Trustees. At December 31, 2009, these liquid restricted securities amounted to $13,873,748, which represented 2.4% of total net assets.

Additional information on restricted securities, excluding securities purchased under Rule 144A, if applicable, that have been deemed liquid by the Trustees, held at December 31, 2009, is as follows:

Security Acquisition
Date		 Acquisition Cost Market Value
California Statewide Communities Development Authority, Revenue Bonds (Series 2001), 6.75% (St. Mark's School), 6/1/2028 7/3/2001 $455,000 $441,232
California Statewide Communities Development Authority, Revenue Bonds, 6.50% (Turningpoint School)/(United States Treasury PRF 5/1/2010@102), 11/1/2031 3/23/2001 $500,000 $520,255
3 Current rate and next reset date shown for Variable Rate Demand Notes.
4 At December 31, 2009, the cost of investments for federal tax purposes was $559,865,180. The net unrealized appreciation from investments was $16,076,668. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $25,251,523 and net unrealized depreciation from investments for those securities having an excess of cost over value of $9,174,855.
5 Assets, other than investments in securities, less liabilities.

Note: The categories of investments are shown as a percentage of total net assets at December 31, 2009.

Investment Valuation

In calculating its net asset value (NAV), the Fund generally values investments as follows:

  • Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Directors.
  • Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).
  • Shares of other mutual funds are valued based upon their reported NAVs.
  • Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
  • Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Directors.

If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund's NAV.

Fair Valuation and Significant Events Procedures

The Directors have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV. Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for
11
the investment (a “mid” evaluation). The Fund normally uses bid evaluations for U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Directors.

The Directors also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:

  • With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets;
  • Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
  • Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry.

The Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Directors.

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:

Level 1 — quoted prices in active markets for identical securities

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

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

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

As of December 31, 2009, all investments of the Fund utilized Level 2 inputs in valuing the Fund's assets carried at fair value.

The following acronyms are used throughout this portfolio:

AMBAC  — American Municipal Bond Assurance Corporation
COL  — Collateralized
COP  — Certificate of Participation
DRIVERs  — Derivative Inverse Tax-Exempt Receipts
EDA  — Economic Development Authority
EDFA  — Economic Development Finance Authority
FGIC  — Financial Guaranty Insurance Company
FHA  — Federal Housing Administration
FSA  — Financial Security Assurance
GNMA  — Government National Mortgage Association
GO  — General Obligation
GTD  — Guaranteed
HDA  — Hospital Development Authority
HEFA  — Health and Education Facilities Authority
HFA  — Housing Finance Authority
HFDC  — Health Facility Development Corporation
IDA  — Industrial Development Authority
IDB  — Industrial Development Bond
IDC  — Industrial Development Corporation
INS  — Insured
ISD  — Independent School District
LID  — Local Improvement District
LIQ  — Liquidity Agreement
LOC  — Letter of Credit
LT  — Limited Tax
PCR  — Pollution Control Revenue
PCRBs  — Pollution Control Revenue Bonds
PRF  — Prerefunded
PSFG  — Public School Fund Guarantee
SFM  — Single Family Mortgage
TFA  — Transitional Finance Authority
TOBs  — Tender Option Bonds
USD  — Unified School District
UT  — Unlimited Tax
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VRDNs  — Variable Rate Demand Notes

13

Item 3. Exhibits

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 Federated Municipal Securities Fund, Inc.

 

By

   /s/ Richard A. Novak
  Richard A. Novak
  Principal Financial Officer

Date

   June 22, 2010

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By

   /s/ J. Christopher Donahue
  J. Christopher Donahue
  Principal Executive Officer

Date

   June 22, 2010

By

   /s/ Richard A. Novak
  Richard A. Novak
  Principal Financial Officer

Date

   June 22, 2010