N-Q 1 y13198anvq.txt FORM N-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY Investment Company Act file number: 811-05689 Morgan Stanley Municipal Premium Income Trust (Exact name of registrant as specified in charter) 1221 Avenue of the Americas, New York, New York 10020 (Address of principal executive offices) (Zip code)
Ronald E. Robison 1221 Avenue of the Americas, New York, New York 10020 (Name and address of agent for service) Registrant's telephone number, including area code: 212-762-4000 Date of fiscal year end: May 31, 2006 Date of reporting period: August 31, 2005 ITEM 1. SCHEDULE OF INVESTMENTS. The Fund's schedule of investments as of the close of the reporting period prepared pursuant to Rule 12-12 of Regulation S-X is as follows: MORGAN STANLEY MUNICIPAL PREMIUM INCOME TRUST PORTFOLIO OF INVESTMENTS August 31, 2005 (unaudited)
PRINCIPAL AMOUNT IN COUPON MATURITY THOUSANDS RATE DATE VALUE --------- ------ --------- ------------- TAX-EXEMPT MUNICIPAL BONDS (143.0%) General Obligation (11.7%) $ 2,000 Los Angeles Unified School District, California, 2003 Ser A (FSA) 5.25% 07/01/20 $ 2,224,860 2,000 Connecticut, 2001 Ser D 5.00 11/15/20 2,149,760 2,500 Chicago Park District, Illinois, Ser 2004 A (Ambac) 5.00 01/01/28 2,652,825 2,000 Du Page County Community Unit School District #200, Illinois, 5.25 11/01/21 2,216,680 Ser 2003 B (FSA) 3,500 Massachusetts, 1995 Ser A (Ambac) 5.00 07/01/12 3,839,885 1,000 New York City, New York, 2005 Ser G 5.00 12/01/23 1,062,700 Pennsylvania, 1,000 RITES PA - 1112 A (MBIA) 6.813++ 01/01/18 1,174,930 1,000 RITES PA - 1112 B (MBIA) 6.813++ 01/01/19 1,198,580 5,000 Charleston County School District, South Carolina, Ser 2004 A 5.00 02/01/22 5,389,350 -------- ------------- 20,000 21,909,570 -------- ------------- Educational Facilities Revenue (8.7%) 2,500 University of Alabama, Ser 2004 A (MBIA) 5.25 07/01/20 2,768,725 2,000 California Educational Facilities Authority, Mills College Ser 2005 A 5.00 09/01/34 2,070,360 3,000 University of California, Ser 2005 F (FSA) 4.75 05/15/26 3,117,990 3,000 North Carolina Capital Facilities Finance Agency, Duke University 5.00 10/01/41 3,184,110 Ser 2005 A 5,000 Swarthmore Boro Authority, Pennsylvania, Swarthmore College 5.00 09/15/31 5,215,400 Ser 2001 -------- ------------- 15,500 16,356,585 -------- ------------- Electric Revenue (15.0%) 8,000 Salt River Project Agricultural Improvement & Power District, 5.00 01/01/26 8,501,040 Arizona, Ser 2002 B 1,550 Los Angeles Department of Water & Power, California, 2001 Ser A 5.00 07/01/24 1,598,655 5,000 Orlando Utilities Commission, Florida, Water & Electric Ser 2001 5.00 10/01/22 5,420,750 3,000 Long Island Power Authority, New York, Ser 2004 A (Ambac) 5.00 09/01/34 3,188,730 2,000 San Antonio, Texas, Electric & Gas Ser 2005 5.00 02/01/25 2,140,180 5,000 Intermountain Power Agency, Utah, Refg 1997 Ser B (MBIA) 5.75 07/01/19 5,331,450 2,000 Grant County Public Utility District #2, Washington, 2005 Ser A 5.00 01/01/34 2,120,000 (FGIC) -------- ------------- 26,550 28,300,805 -------- ------------- Hospital Revenue (14.1%) 3,500 Birmingham-Carraway Special Care Facilities Financing Authority, 5.875 08/15/15 3,577,175 Alabama, Carraway Methodist Health Ser 1995 A (Connie Lee) 1,000 Washington County, Arkansas, Washington Regional Medical Center 5.00 02/01/35 1,011,720 Ser 2005 A 1,000 California Statewide Community Development, Huntington Memorial 5.00 07/01/27 1,044,570 Hospital Ser 2005 2,000 Indiana Health Facilities Financing Authority, Community Health 5.00 05/01/35 2,117,780 Ser 2005 A (Ambac) Louisiana Public Facilities Authority, 3,000 Baton Rouge General Medical Center FHA Insured Mtge 5.25 07/01/33 3,184,800 Ser 2004 (MBIA) 2,000 Oshner Clinic Ser 2002 B 5.50 05/15/32 2,078,040 1,000 Maryland Health & Higher Education Facilities Authority, Johns 5.00 11/15/28 1,058,180 Hopkins Hospital Ser 2003 3,500 Kent Hospital Finance Authority, Michigan, Metropolitan Hospital 6.25 07/01/40 3,908,660 Ser 2005 A 1,100 Glencoe, Minnesota, Glencoe Regional Health Services 5.00 04/01/31 1,112,903 Project Ser 2005
2,000 New York State Dormitory Authority, Montefiore Hospital 5.00 08/01/29 2,132,140 FHA Insured Mtge Ser 2004 (FGIC) 5,000 Lehigh County General Purpose Authority, Pennsylvania, St Luke's 5.375 08/15/33 5,252,200 of Bethlehem Ser A 2003 -------- ------------- 25,100 26,478,168 -------- ------------- Industrial Development/Pollution Control Revenue (12.5%) 5,655 Pima County Industrial Development Authority, Arizona, 7.25 07/15/10 5,821,087 Tucson Electric Power Co Refg Ser 1988 A (FSA) Golden State, California, 2,000 Tobacco Securitization Corporation Ser 2005 A (Ambac) 5.00 06/01/29 2,097,260 2,470 Tobacco Securitization Corporation Ser 2005 A 5.00 06/01/45 2,577,346 1,000 Salem County Pollution Control Financing Authority, New Jersey, 6.125 07/15/22 1,008,970 E I du Pont de Nemours & Co 1992 Ser A (AMT) New York City Industrial Development Agency, New York, 8,000 Brooklyn Navy Yard Cogeneration Partners LP Ser 1997 (AMT) 5.65 10/01/28 8,041,280 2,000 7 World Trade Center, LLC Ser A 6.25 03/01/15 2,127,300 1,500 Brazos River Authority, Texas, TXU Electric Co Refg Ser 1999 A 7.70 04/01/33 1,807,755 (AMT) -------- ------------- 22,625 23,480,998 -------- ------------- Mortgage Revenue - Multi-Family (0.2%) 345 Minnesota Housing Finance Agency, Rental 1995 Ser D (MBIA) 6.00 02/01/22 352,311 -------- ------------- Mortgage Revenue - Single Family (0.2%) 195 Colorado Housing & Finance Authority Ser 1997 A-2 (AMT) 7.25 05/01/27 196,330 15 Kansas City Leavenworth & Lenexa, Kansas, GNMA-Backed 8.00 11/01/20 15,033 Ser 1998 C (AMT) 240 Missouri Housing Development Commission, 7.10 09/01/27 243,859 Homeownership 1996 Ser D (AMT) -------- ------------- 450 455,222 -------- ------------- Public Facilities Revenue (6.3%) 1,000 Jefferson County, Alabama, School Ser 2004 A 5.50 01/01/22 1,103,120 Fort Collins, Colorado, 2,040 Ser 2004 A 5.375 06/01/21 2,273,131 2,155 Ser 2004 A COPs (Ambac) 5.375 06/01/22 2,396,188 Saint Paul Independent School District #625, Minnesota, 1,700 Ser 1995 C COPs 5.45 02/01/11 1,703,604 1,800 Ser 1995 C COPs 5.50 02/01/12 1,803,888 2,400 Goat Hill Properties, Washington, Governmental Office Building 5.00 12/01/33 2,531,640 Ser 2005 (MBIA) -------- ------------- 11,095 11,811,571 -------- ------------- Transportation Facilities Revenue (17.4%) 2,500 Miami-Dade County, Florida, Miami Int'l Airport Ser 2000 B (FGIC) 5.75 10/01/24 2,784,450 Georgia State Road & Tollway Authority, 2,000 Ser 2004 5.00 10/01/22 2,181,180 3,000 Ser 2004 5.00 10/01/23 3,266,310 5,000 Chicago, Illinois, Chicago-O'Hare Int'l Airport Ser 1996 A (Ambac) 5.625 01/01/12 5,143,000 5,000 New Jersey Turnpike Authority, Ser 2003 A (Ambac) 5.00 01/01/30 5,296,900 3,000 Metropolitan Transportation Authority, New York, State Service 5.50 07/01/20 3,350,100 Contract Refg Ser 2002 B (MBIA) 2,000 Port Authority of New York & New Jersey, Cons 135th Ser (XLCA)# 5.00 09/15/29 2,138,960 3,000 Triborough Bridge & Tunnel Authority, New York, Refg Ser 2002 B 5.25 11/15/19 3,324,600 2,000 Pennsylvania Turnpike Commission, Ser R 2001 (Ambac) 5.00 12/01/30 2,114,320 3,000 Rhode Island Economic Development Airport, 2005 Ser C (MBIA) 5.00 07/01/28 3,200,250 -------- ------------- 30,500 32,800,070 -------- -------------
Water & Sewer Revenue (28.8%) 3,000 Los Angeles Department of Water & Power, California, Water 5.00 07/01/25 3,208,560 2004 Ser C (MBIA) 3,000 Oxnard Financing Authority, California, Wastewater 2004 Ser A 5.00 06/01/29 3,193,260 (FGIC) 3,000 San Diego County Water Authority, California, Ser 2004 A (FSA) 5.00 05/01/29 3,204,900 2,460 JEA, Florida, Water & Sewer, Sub-second Crossover Ser (MBIA) 5.00 10/01/24 2,640,884 3,000 Atlanta, Georgia, Water & Wastewater Ser 1999 A (FGIC) 5.50 11/01/22 3,573,450 4,000 Augusta, Georgia, Water & Sewerage Ser 2000 (FSA) 5.25 10/01/22 4,343,160 Indianapolis Local Public Improvement Bond Bank, Indiana, 1,000 Waterworks Ser 2002 A (MBIA) 5.50 01/01/18 1,119,600 1,000 Waterworks Ser 2002 A (MBIA) 5.50 01/01/19 1,119,600 3,215 Louisville & Jefferson County Metropolitan Sewer District, 5.375 05/15/22 3,570,579 Kentucky, Ser 2001 A (MBIA) 1,755 Detroit, Michigan, Water Supply Sr Lien Ser 2001 A (FGIC) 5.25 07/01/33 1,898,383 3,000 Las Vegas Water District, Nevada, Impr and Refg Ser 2003 A 5.25 06/01/22 3,295,170 (FGIC) 2,000 Passaic Valley Sewerage Commissioners, New Jersey, Ser F 5.00 12/01/19 2,186,560 (FGIC) 1,675 Cleveland, Ohio, Waterworks Impr & Refg 1998 Ser I (FSA) 5.00 01/01/23 1,746,958 5,000 Austin, Texas, Water & Wastewater Refg Ser 2001 A (FSA) 5.125 05/15/27 5,252,350 10,000 Houston, Texas, Combined Utilities Refg 2004 Ser A (FGIC) 5.25 05/15/23 10,945,300 2,700 West Virginia Water Development Authority, 2005 Ser A (FSA) 5.00 11/01/44 2,853,036 -------- ------------- 49,805 54,151,750 -------- ------------- Other Revenue (12.9%) 5,000 California Economic Recovery, Ser 2004 A## 5.00 07/01/16 5,396,500 2,000 New Jersey Economic Development Authority, Cigarette Tax 5.75 06/15/29 2,162,340 Ser 2004 2,000 New York City Transitional Finance Authority, New York, 5.50 11/01/26 2,214,700 Refg 2003 Ser A 5,000 New York County TOB TR IV, TOB Settlement Pass Thru Ser 2005 A 5.00 06/01/45 4,935,800 8,000 New York State Local Government Assistance Corporation, 5.00 04/01/21 8,399,280 Refg Ser 1997 B (MBIA) 1,000 Philadelphia, Pennsylvania, Gas Works Eighteenth Ser (AGC) 5.25 08/01/20 1,097,270 -------- ------------- 23,000 24,205,890 -------- ------------- Refunded (15.2%) 5,000 Arizona Transportation Board, Highway Ser 2001 5.25 07/01/11+ 5,523,050 5,000 San Diego Unified School District, California, 1998 Ser E (FSA) 5.00 07/01/13** 5,482,800 3,000 Hawaii, 1999 Ser CT (FSA) 5.875 09/01/09+ 3,335,640 1,340 Missouri Health & Educational Facilities Authority, Missouri, Baptist 7.625 07/01/18 1,349,581 Medical Center Refg Ser 1989 (ETM) 3,000 Barberton City School District, Ohio, Ser 1998 (FGIC) 5.125 11/01/08+ 3,179,070 4,000 Montgomery County, Ohio, Franciscan Medical Center - Dayton 5.50 01/01/10+ 4,322,880 Ser 1997 5,000 La Joya Independent School District, Texas, Ser 2000 (PSF) 5.50 02/15/10+ 5,483,750 -------- ------------- 26,340 28,676,771 -------- ------------- 251,310 TOTAL TAX-EXEMPT MUNICIPAL BONDS (Cost $253,775,677) 268,979,711 -------- ------------- SHORT-TERM TAX-EXEMPT MUNICIPAL OBLIGATIONS (7.9%) 3,800 Illinois Financing Authority, Ser 2005 B (Demand 09/01/05) 2.28* 08/15/38 3,800,000 2,400 Harris County Health Facilities Development Corporation, Texas, 2.34* 12/01/32 2,400,000 Methodist Hospital System Ser 2005 B (Demand 09/01/05) 8,500 San Antonio, Texas, Electric & Gas Refg Ser 1994 C INFLOS 6.32++ 02/01/06 8,631,665 -------- ------------- 14,700 TOTAL SHORT-TERM TAX-EXEMPT MUNICIPAL OBLIGATIONS (Cost $14,700,000) 14,831,665 -------- ------------- $266,010 TOTAL INVESTMENTS (Cost $268,475,677) (a) (b) 150.9% 283,811,376 ======== OTHER ASSETS IN EXCESS OF LIABILITIES 2.3 4,377,121
PREFERRED SHARES OF BENEFICIAL INTEREST (53.2) (100,079,946) ----- ------------- NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 100.0% $ 188,108,551 ===== =============
---------- Note: The categories of investments are shown as a percentage of net assets applicable to common shareholders. AMT Alternative Minimum Tax. COPs Certificates of Participation. ETM Escrowed to maturity. INFLOS Inverse Floating Rate Securities. PSF Texas Permanent School Fund Guarantee Program. RITES Residual Interest Tax-Exempt Securities (Illiquid securities). * Current coupon of variable rate demand obligation. ** Crossover refunded to call date shown. + Prerefunded to call date shown. ++ Current coupon rate for inverse floating rate municipal obligation. This rate resets periodically as the auction rate on the related security changes. Positions in inverse floating rate municipal obligation have a total value of $11,005,175 which represents 5.9 % of net assets applicable to common shareholders. # Joint exemption in location shown. ## A portion of this security has been physically segregated in connection with open futures contracts in an amount equal to $130,000. (a) Securities have been designated as collateral in an amount equal to $25,811,189 in connection with open futures contracts. (b) The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is $15,433,538 and the aggregate gross unrealized depreciation is $13,252, resulting in net unrealized appreciation of $15,420,286.
Bond Insurance: --------------- AGC Assured Guaranty Corporation. Ambac Ambac Assurance Corporation. Connie Lee Connie Lee Insurance Company - A wholly owned subsidiary of Ambac Assurance Corporation. FGIC Financial Guaranty Insurance Company. FSA Financial Security Assurance Inc. MBIA Municipal Bond Investors Assurance Corporation. XLCA XL Capital Assurance Inc.
Futures Contracts Open at August 31, 2005:
NUMBER OF DESCRIPTION, DELIVERY UNDERLYING FACE UNREALIZED CONTRACTS LONG/SHORT MONTH AND YEAR AMOUNT AT VALUE DEPRECIATION --------- ---------- ------------------------- --------------- ------------ 200 Short U.S. Treasury Notes 5 yr December 2005 $(21,675,000) $(174,610) 40 Short U.S. Treasury Notes 10 yr December 2005 (4,483,125) (42,986) --------- Total unrealized depreciation ................................... $(217,596) =========
GEOGRAPHIC SUMMARY OF INVESTMENTS BASED ON MARKET VALUE AS A PERCENT OF TOTAL INVESTMENTS Alabama 2.6% Arizona 7.0 California 12.4 Colorado 1.7 Connecticut 0.8 Florida 3.8 Georgia 4.7 Hawaii 1.2 Illinois 4.9 Indiana 1.5 Kentucky 1.3 Louisiana 1.9 Maryland 0.4 Massachusetts 1.3 Michigan 2.0 Minnesota 1.7 Missouri 0.6 Nevada 1.2 New Jersey 4.5 New York 14.4 North Carolina 1.1 Ohio 3.3 Pennsylvania 5.7 Rhode Island 1.1 South Carolina 1.9 Texas 12.9 Utah 1.9 Washington 2.0 West Virginia 1.0 Joint exemptions* (0.8) ----- Total+ 100.0% =====
---------- * Joint exemptions have been included in each geographic location. + Does not include open short futures contracts with an underlying face amount of $26,158,125, with unrealized depreciation of $217,596. ITEM 2. CONTROLS AND PROCEDURES. (a) The Fund's principal executive officer and principal financial officer have concluded that the Fund's disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Fund in this Form N-Q was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, based upon such officers' evaluation of these controls and procedures as of a date within 90 days of the filing date of the report. (b) There were no changes in the Fund's internal control over financial reporting that occurred during the registrant's fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Fund's internal control over financial reporting. ITEM 3. EXHIBITS. (a) A separate certification for each principal executive officer and principal financial officer of the registrant are attached hereto. 2 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. Morgan Stanley Municipal Premium Income Trust /s/ Ronald E. Robison ------------------------------------- Ronald E. Robison Principal Executive Officer October 20, 2005 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated. /s/ Ronald E. Robison ------------------------------------- Ronald E. Robison Principal Executive Officer October 20, 2005 /s/ Francis Smith ------------------------------------- Francis Smith Principal Financial Officer October 20, 2005 3