N-Q 1 y19302n2nvq.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: February 28, 2006 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 FEBRUARY 28, 2006 (UNAUDITED)
PRINCIPAL AMOUNT IN COUPON MATURITY THOUSANDS RATE DATE VALUE --------- ------ -------- ----------- TAX-EXEMPT MUNICIPAL BONDS (150.5%) General Obligation (13.4%) $3,000 California, Various Purpose dtd 12/01/05 5.00% 03/01/27 $ 3,153,120 2,000 Los Angeles Unified School District, California, 2003 Ser A (FSA) 5.25 07/01/20 2,183,500 2,000 Connecticut, 2001 Ser D 5.00 11/15/20 2,119,480 2,500 Chicago Park District, Illinois, 2004 Ser A (Ambac) 5.00 01/01/28 2,625,900 2,000 Du Page County Community Unit School District #200, Illinois, 5.25 11/01/21 2,163,300 Ser 2003 B (FSA) 1,200 Minnesota Higher Educational Facilities Authority, University St 5.00 04/01/23 1,275,216 Thomas, Ser 2006 Six-I New York City, New York, 2,000 2006 Ser F 5.00 09/01/23 2,112,320 1,000 2005 Ser G 5.00 12/01/23 1,052,440 Pennsylvania, 1,000 RITES PA - 1112 A (MBIA) 7.346+++ 01/01/18 1,129,050 1,000 RITES PA - 1112 B (MBIA) 7.346+++ 01/01/19 1,160,180 5,000 Charleston County School District, South Carolina, Ser 2004 A 5.00 02/01/22 5,317,350 ------ ----------- 22,700 24,291,856 ------ ------------ Educational Facilities Revenue (7.2%) 2,500 University of Alabama, Ser 2004 A (MBIA) 5.25 07/01/20 2,743,825 2,000 California Educational Facilities Authority, Mills College Ser 2005 A 5.00 09/01/34 2,050,980 3,000 North Carolina Capital Facilities Finance Agency, Duke University 5.00 10/01/41 3,152,190 Ser 2005 A 5,000 Swarthmore Boro Authority, Pennsylvania, Swarthmore College Ser 2001 5.00 09/15/31 5,174,750 ------ ----------- 12,500 13,121,745 ------ ----------- Electric Revenue (13.3%) 8,000 Salt River Project Agricultural Improvement & Power District, 5.00 01/01/26 8,398,560 Arizona, Ser 2002 B 1,550 Los Angeles Department of Water & Power, California, 2001 Ser A 5.00 07/01/24 1,586,503 5,000 Orlando Utilities Commission, Florida, Water & Electric Ser 2001 5.00 10/01/22 5,309,050 3,000 Long Island Power Authority, New York, Ser 2004 A (Ambac) 5.00 09/01/34 3,152,250 3,365 Intermountain Power Agency, Utah, Refg 1997 Ser B (MBIA) 5.75 07/01/19 3,525,847 2,000 Grant County Public Utility District #2, Washington, Wanapum 5.00 01/01/34 2,090,720 Hydroelectric 2005 Ser A (FGIC) ------ ----------- 22,915 24,062,930 ------ ----------- Hospital Revenue (17.9%) 3,500 Birmingham-Carraway Special Care Facilities Financing Authority, 5.875 08/15/15 3,576,685 Alabama, Carraway Methodist Health Ser 1995 A (Connie Lee) 1,000 Washington County, Arkansas, Washington Regional Medical 5.00 02/01/35 1,011,450 Center Ser 2005 A 1,000 California Statewide Community Development Authority, 5.00 07/01/27 1,039,670 Huntington Memorial Hospital Ser 2005 3,000 Indiana Health & Educational Facility Financing Authority, Clarian 5.25 02/15/40 3,111,150 Health Ser 2006 A 2,000 Indiana Health Facilities Financing Authority, Community Health 5.00 05/01/35 2,088,120 Ser 2005 A (Ambac) Louisiana Public Facilities Authority, 3,000 Baton Rouge General Medical Center FHA Insured Mtge Ser 2004 (MBIA) 5.25 07/01/33 3,178,410 2,000 Ochsner Clinic Ser 2002 5.50 05/15/32 2,030,140 1,000 Maryland Health & Higher Education Facilities Authority, Johns 5.00 11/15/28 1,047,150 Hopkins Hospital Ser 2003 3,500 Kent Hospital Finance Authority, Michigan, Metropolitan Hospital 6.25 07/01/40 3,839,780 Ser 2005 A 1,100 Glencoe, Minnesota, Glencoe Regional Health Services Ser 2005 5.00 04/01/31 1,103,542 2,000 New York State Dormitory Authority, Montefiore Hospital 5.00 08/01/29 2,106,580 FHA Insured Mtge Ser 2004 (FGIC)
5,000 Lehigh County General Purpose Authority, Pennsylvania, St Luke's 5.375 08/15/33 5,192,750 of Bethlehem Ser A 2003 3,000 Johnson City Health and Educational Facilities, Tennessee, Ser 5.50 07/01/36 3,156,900 2006 A ------ ----------- 31,100 32,482,327 ------ ----------- Industrial Development/Pollution Control Revenue (15.5%) 4,810 Pima County Industrial Development Authority, Arizona, Tucson 7.25 07/15/10 4,865,700 Electric Power Co Refg Ser 1988 A (FSA) 3,000 Tobacco Settlement Authority, Iowa, Ser 2005 C 5.50 06/01/42 3,020,280 New York City Industrial Development Agency, New York, 5,000 American Airlines Inc Ser 2005 (AMT) 7.75 08/01/31 5,406,300 8,000 Brooklyn Navy Yard Cogeneration Partners LP Ser 1997 (AMT) 5.65 10/01/28 8,014,880 2,000 7 World Trade Center, LLC Ser A 6.25 03/01/15 2,104,020 3,000 Tsasc Inc, New York, Ser 2006-1 5.125 06/01/42 2,980,170 1,500 Brazos River Authority, Texas, Texas Utilities Electric Co 7.70 04/01/33 1,759,305 Refg Ser 1999 A (AMT) ------ ----------- 27,310 28,150,655 ------ ----------- Mortgage Revenue - Multi-Family (0.2%) 345 Minnesota Housing Finance Agency, Rental 1995 Ser D (MBIA) 6.00 02/01/22 348,895 ------ ----------- Mortgage Revenue - Single Family (0.2%) 155 Colorado Housing & Finance Authority Ser 1997 A-2 (AMT) 7.25 05/01/27 155,944 10 Kansas City Leavenworth & Lenexa, Kansas, GNMA-Backed 8.00 11/01/20 10,023 Ser 1998 C (AMT) 185 Missouri Housing Development Commission, 7.10 09/01/27 186,426 Homeownership 1996 Ser D (AMT) ------ ----------- 350 352,393 ------ ----------- Public Facilities Revenue (7.3%) 1,000 Jefferson County, Alabama, School Ser 2004 A 5.50 01/01/22 1,088,820 Fort Collins, Colorado, 2,040 Ser 2004 A 5.375 06/01/21 2,236,248 2,155 Ser 2004 A COPs (Ambac) 5.375 06/01/22 2,359,122 Saint Paul Independent School District #625, Minnesota, 1,700 Ser 1995 C COPs 5.45 02/01/11 1,702,907 1,800 Ser 1995 C COPs 5.50 02/01/12 1,803,150 1,500 Oregon Department of Administrative Services, Ser 2005 B COPs 5.00 11/01/21 1,606,215 (FGIC) 2,400 Goat Hill Properties, Washington, Governmental Office Building 5.00 12/01/33 2,502,672 Ser 2005 (MBIA) ------ ----------- 12,595 13,299,134 ------ ----------- Retirement & Life Care Facilities Revenue (1.7%) 2,000 Glendale Industrial Development Authority, Arizona, John C Lincoln 5.00 12/01/37 2,009,820 Health Ser 2005 B 1,000 Lubbock Health Facilities Development Corporation, Texas, 6.625 07/01/36 993,280 Carillon Senior Life Care Ser 2005 A ------ ----------- 3,000 3,003,100 ------ ----------- Transportation Facilities Revenue (23.7%) 3,000 Florida, Department of Transportation, Ser 2002 A (MBIA) 5.00 07/01/25 3,184,170 Miami-Dade County, Florida, Miami Int'l Airport, 2,500 Ser 2000 B (FGIC) 5.75 10/01/24 2,731,975 2,000 Ser 2005 A (AMT) (CIFG) 5.00 10/01/38 2,068,460 Georgia State Road & Tollway Authority, 2,000 Ser 2004 5.00 10/01/22 2,133,820 3,000 Ser 2004 5.00 10/01/23 3,200,730 Chicago, Illinois, Chicago-O'Hare Int'l Airport 5,000 Ser 1996 A (Ambac) 5.625 01/01/12 5,108,700 4,000 3rd Lien Ser 2005 A 5.25 01/01/26 4,343,880 2,000 Massachusetts Turnpike Authority, Metropolitan Highway 5.00 01/01/37 2,039,380 Ser 1997 A (MBIA) 5,000 New Jersey Turnpike Authority, Ser 2003 A (Ambac) 5.00 01/01/30 5,242,150 3,000 Metropolitan Transportation Authority, New York, State Service 5.50 07/01/20 3,295,500 Contract Refg Ser 2002 B (MBIA) 3,000 Triborough Bridge & Tunnel Authority, New York, Refg Ser 2002 B 5.25 11/15/19 3,262,140 2,000 Pennsylvania Turnpike Commission, Ser R 2001 (Ambac) 5.00 12/01/30 2,096,180
3,000 Rhode Island Economic Development Corporation, 5.00 07/01/28 3,163,530 Airport 2005 Ser C (MBIA) 1,000 Harris County, Texas, Toll Road Sr Lien Ser 2005 A (FSA) 5.25 08/15/35 1,054,430 -------- ------------ 40,500 42,925,045 -------- ------------ Water & Sewer Revenue (30.6%) 2,000 Camarillo Public Finance Authority, California, Wastewater 5.00 06/01/36 2,115,860 Ser 2005 (Ambac) 3,000 Los Angeles Department of Water & Power, California, Water 5.00 07/01/25 3,172,680 2004 Ser C (MBIA) 3,000 Oxnard Financing Authority, California, Wastewater 2004 Ser A 5.00 06/01/29 3,154,080 (FGIC) 3,000 San Diego County Water Authority, California, Ser 2004 A COPs 5.00 05/01/29 3,165,810 (FSA) 2,460 JEA, Florida, Water & Sewer, Sub-second Crossover Ser (MBIA) 5.00 10/01/24 2,606,985 3,000 Atlanta, Georgia, Water & Wastewater Ser 1999 A (FGIC) 5.50 11/01/22 3,451,170 4,000 Augusta, Georgia, Water & Sewerage Ser 2000 (FSA) 5.25 10/01/22 4,282,240 Indianapolis Local Public Improvement Bond Bank, Indiana, 1,000 Waterworks Ser 2002 A (MBIA) 5.50 01/01/18 1,094,660 1,000 Waterworks Ser 2002 A (MBIA) 5.50 01/01/19 1,094,660 3,215 Louisville & Jefferson County Metropolitan Sewer District, 5.375 05/15/22 3,501,199 Kentucky, Ser 2001 A (MBIA) 1,755 Detroit, Michigan, Water Supply Sr Lien Ser 2001 A (FGIC) 5.25 07/01/33 1,869,022 3,000 Las Vegas Water District, Nevada, Impr and Refg Ser 2003 A 5.25 06/01/22 3,244,320 (FGIC) 2,000 Passaic Valley Sewerage Commissioners, New Jersey, Ser F 5.00 12/01/19 2,143,860 (FGIC) 1,675 Cleveland, Ohio, Waterworks Impr & Refg 1998 Ser I (FSA) 5.00 01/01/23 1,731,732 5,000 Austin, Texas, Water & Wastewater Refg Ser 2001 A (FSA) 5.125 05/15/27 5,197,400 10,000 Houston, Texas, Combined Utility Refg 2004 Ser A (FGIC) 5.25 05/15/23 10,841,700 2,700 West Virginia Water Development Authority, Loan Program IV 5.00 11/01/44 2,833,974 2005 Ser A (FSA) -------- ------------ 51,805 55,501,352 -------- ------------ Other Revenue (12.8%) 5,000 California Economic Recovery, Ser 2004 A++ 5.00 07/01/16 5,354,750 Golden State Tobacco Securitization Corporation, California, 2,000 Enhanced Asset Backed Ser 2005 A (Ambac) 5.00 06/01/29 2,072,080 2,000 Enhanced Asset Backed Ser 2005 A 5.00 06/01/45 2,055,820 2,000 New Jersey Economic Development Authority, Cigarette Tax 5.75 06/15/29 2,134,960 Ser 2004 2,000 New York City Transitional Finance Authority, New York, 5.50 11/01/26 2,177,940 Refg 2003 Ser A 8,000 New York State Local Government Assistance Corporation, 5.00 04/01/21 8,319,120 Refg Ser 1997 B (MBIA) 1,000 Philadelphia, Pennsylvania, Gas Works Eighteenth Ser (AGC) 5.25 08/01/20 1,081,570 -------- ------------ 22,000 23,196,240 -------- ------------ Refunded (6.7%) 3,000 Hawaii, 1999 Ser CT (FSA) 5.875 09/01/09+ 3,262,770 1,340 Missouri Health & Educational Facilities Authority, Missouri, Baptist 7.625 07/01/18 1,591,478 Medical Center Refg Ser 1989 (ETM) 3,000 Barberton City School District, Ohio, Ser 1998 (FGIC) 5.125 11/01/08+ 3,142,020 4,000 Montgomery County, Ohio, Franciscan Medical Center - Dayton 5.50 01/01/10+ 4,226,960 Ser 1997 -------- ------------ 11,340 12,223,228 -------- ------------ 258,460 TOTAL TAX-EXEMPT MUNICIPAL BONDS (Cost $261,380,263) 272,958,900 -------- ------------ SHORT-TERM TAX-EXEMPT MUNICIPAL OBLIGATIONS (2.9%) 2,815 Reno, Nevada, St Mary's Regional Medical Center Ser 1998 B 2.91* 05/15/23 2,815,000 (MBIA) (Demand 03/01/06) 1,200 Nassau County Industrial Development Agency, New York, 1999 2.97* 01/01/34 1,200,000 Cold Spring Harbor Lab (Demand 03/01/06) 1,300 North Central Texas Health Facilities Development Corporation, 2.91* 12/01/15 1,300,000 Presbyterian Medical Center Ser 1985 D (MBIA) (Demand 03/01/06) -------- ------------ 5,315 TOTAL SHORT-TERM TAX-EXEMPT MUNICIPAL OBLIGATIONS (Cost $5,315,000) 5,315,000 -------- ------------
$263,775 TOTAL INVESTMENTS (Cost $266,695,263) (a) (b) 153.4% 278,273,900 ======== OTHER ASSETS IN EXCESS OF LIABILITIES 1.8 3,215,902 PREFERRED SHARES OF BENEFICIAL INTEREST (55.2) (100,085,060) ----- ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 100.0% $181,404,742 ===== ============
---------- 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. RITES Residual Interest Tax-Exempt Securities (Illiquid securities). * Current coupon of variable rate demand obligation. + Prerefunded to call date shown. ++ A portion of this security has been physically segregated in connection with open futures contracts in an amount equal to $104,000. +++ 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 obligations have a total value of $2,289,230 which represents 1.3% of net assets applicable to common shareholders. (a) Securities have been designated as collateral in an amount equal to $29,403,501 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 $11,693,316 and the aggregate gross unrealized depreciation is $38,354, resulting in net unrealized appreciation is $11,654,962. Bond Insurance: AGC Assured Guaranty Corporation. Ambac Ambac Assurance Corporation. CIFG CIFG Assurance North America Inc. 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. Futures Contracts Open at February 28, 2006:
DESCRIPTION, UNDERLYING NUMBER OF DELIVERY MONTH FACE AMOUNT UNREALIZED CONTRACTS LONG/SHORT AND YEAR AT VALUE DEPRECIATION --------- ---------- -------------- ----------- ------------ 240 Short U.S. Treasury Notes 5 yr June 2006 $(25,245,000) $(40,034) 40 Short U.S. Treasury Notes 10 yr June 2006 (4,316,250) (14,485) -------- Total Unrealized Depreciation ........... $(54,519) ========
GEOGRAPHIC SUMMARY OF INVESTMENTS BASED ON MARKET VALUE AS A PERCENT OF TOTAL INVESTMENTS Alabama 2.7% Arizona 5.5 Arkansas 0.4 California 11.2 Colorado 1.7 Connecticut 0.8 Florida 5.7 Georgia 4.7 Hawaii 1.2 Illinois 5.1 Indiana 2.7 Iowa 1.1 Kentucky 1.3 Louisiana 1.9 Maryland 0.4 Massachusetts 0.7 Michigan 2.0 Minnesota 2.2 Missouri 0.6 Nevada 2.2 New Jersey 3.4 New York 16.2 North Carolina 1.1 Ohio 3.3 Oregon 0.6 Pennsylvania 5.7 Rhode Island 1.1 South Carolina 1.9 Tennessee 1.1 Texas 7.6 Utah 1.3 Washington 1.6 West Virginia 1.0 ----- Total+ 100.0% =====
---------- + Does not include open short futures contracts with an underlying face amount of $29,561,250, with unrealized depreciation of $54,519. 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 April 19, 2006 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 April 19, 2006 /s/ Francis Smith ---------------------------------------- Francis Smith Principal Financial Officer April 19, 2006 3