N-Q 1 y83694anvq.htm FORM N-Q nvq
 
 
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)
     
522 Fifth Avenue, New York, New York
(Address of principal executive offices) 		  10036
(Zip code)
Randy Takian
522 Fifth Avenue, New York, New York 10036
(Name and address of agent for service)
Registrant’s telephone number, including area code: 212-296-6963
Date of fiscal year end: May 31, 2010
Date of reporting period: February 28, 2010
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 n February 28, 2010 (unaudited)
                                 
PRINCIPAL                        
AMOUNT IN         COUPON     MATURITY        
THOUSANDS         RATE     DATE     VALUE  
 
       
Tax-Exempt Municipal Bonds (165.3%)
                        
       
Alabama (2.6%)
                        
$ 1,000    
County of Jefferson, School Ser 2004 A
     5.50 %     01/01/22     $ 847,900  
  2,500    
University of Alabama, Ser 2004 A (NATL-RE Insd)
     5.25       07/01/20       2,767,975  
       
 
                      
       
 
                     3,615,875  
       
 
                      
       
Alaska (1.0%)
                        
  2,000    
Northern Tobacco Securitization Corp., Asset Backed Ser 2006 A
     5.00       06/01/46       1,333,400  
       
 
                      
       
Arizona (7.8%)
                        
  1,795    
Glendale Industrial Development Authority, John C Lincoln Health Ser 2005 B
     5.00       12/01/37       1,586,637  
  300    
Maricopa County Pollution Control Corp., Arizona Public Service Co. Ser 2009 A
     6.00       05/01/29       317,235  
  665    
Pima County Industrial Development Authority, Tucson Electric Power Co. Refg Ser 1988 A (AGM Insd)
     7.25       07/15/10       668,797  
  8,000    
Salt River Project Agricultural Improvement & Power District, Ser 2002 B (a)
     5.00       01/01/26       8,312,441  
       
 
                      
       
 
                     10,885,110  
       
 
                      
       
Arkansas (0.7%)
                        
  1,000    
County of Washington, Washington Regional Medical Center Ser 2005 A
     5.00       02/01/35       939,000  
       
 
                      
       
California (19.4%)
                        
  2,000    
California Infrastructure & Economic Development Bank, The Scripps Research Institute Ser 2005 A
     5.00       07/01/29       2,061,320  
  1,000    
California Statewide Communities Development Authority, Huntington Memorial Hospital Ser 2005
     5.00       07/01/27       981,740  
  2,000    
Camarillo Public Finance Authority, Wastewater Ser 2005 (AMBAC Insd)
     5.00       06/01/36       1,979,640  
  460    
City & County of San Francisco, Laguna Refg Ser R-3, (AGC Insd) (a)
     5.00       06/15/28       472,636  
  2,000    
Golden State Tobacco Securitization Corp., Enhanced Asset Backed Ser 2005 A
     5.00       06/01/45       1,690,060  
  1,775    
Golden State Tobacco Securitization Corp., Enhanced Asset Backed Ser 2007 A-1
     5.75       06/01/47       1,308,832  
  1,000    
Kern County Board of Education, Refg Ser 2006 A (COPs) (NATL-RE Insd)
     5.00       06/01/31       1,004,190  
  3,000    
Los Angeles Department of Water & Power, 2004 Ser C (NATL-RE Insd) (a)
     5.00       07/01/25       3,153,439  
  3,000    
Oxnard Financing Authority, Redwood Trunk Sewer & Headworks Ser 2004 A (NATL-RE & FGIC Insd)
     5.00       06/01/29       3,026,130  
  110    
Port of Oakland, Ser 2002 L (AMT) (NATL-RE & FGIC Insd)
     5.00       11/01/12 (b)     122,180  
  890    
Port of Oakland, Ser 2002 L (AMT) (NATL-RE & FGIC Insd)
     5.00       11/01/21       884,731  
  3,000    
San Diego County Water Authority, Ser 2004 A (COPs) (AGM Insd) (a)
     5.00       05/01/29       3,086,595  
  2,500    
State of California, Ser 2004 A
     5.00       07/01/16       2,600,000  
  3,000    
State of California, Various Purpose dtd 12/01/05
     5.00       03/01/27       2,936,070  
  600    
Twin Rivers Unified School District, Ser 2009 (BANs) (c)
     0.00       04/01/14       529,908  
  4,650    
William S. Hart Union High School District, Ser 2009 A (c)
     0.00       08/01/32       1,083,682  
       
 
                      
       
 
                     26,921,153  
       
 
                      
       
Colorado (5.7%)
                        
  2,040    
City of Fort Collins, Ser 2004 A (COPs) (AMBAC Insd)
     5.375       06/01/21       2,183,902  

 

 

Morgan Stanley Municipal Premium Income Trust*
Portfolio of Investments n February 28, 2010 (unaudited) continued
                                 
PRINCIPAL                        
AMOUNT IN         COUPON     MATURITY        
THOUSANDS         RATE     DATE     VALUE  
 
$ 2,155    
City of Fort Collins, Ser 2004 A (COPs) (AMBAC Insd)
     5.375 %     06/01/22     $ 2,298,760  
  1,500    
Colorado Health Facilities Authority, Adventist/Sunbelt Ser 2006 D
     5.00       07/01/39       1,518,900  
  15    
Colorado Housing & Finance Authority, Ser 1997 A-2 (AMT)
     7.25       05/01/27       15,288  
  2,000    
Denver Convention Center Hotel Authority, Refg Ser 2006 (XLCA Insd)
     5.00       12/01/30       1,746,980  
  125    
Public Authority for Colorado Energy, Natural Gas Ser 2008
     6.25       11/15/28       132,390  
       
 
                      
       
 
                     7,896,220  
       
 
                      
       
District of Columbia (3.1%)
                        
  3,000    
District of Columbia Ballpark, Ser 2006 B-1 (NATL-RE & FGIC Insd)
     5.00       02/01/31       2,751,930  
  380    
District of Columbia, Ser 2008 E (BHAC Insd) (a)
     5.00       06/01/26       404,911  
  380    
District of Columbia, Ser 2008 E (BHAC Insd) (a)
     5.00       06/01/27       404,911  
  760    
District of Columbia, Ser 2008 E (BHAC Insd) (a)
     5.00       06/01/28       809,822  
       
 
                      
       
 
                     4,371,574  
       
 
                      
       
Florida (17.0%)
                        
  2,000    
Broward County Educational Facilities Authority, Nova Southeastern University Ser 2006 (AGC Insd)
     5.00       04/01/31       2,019,780  
  650    
County of Miami-Dade, Miami Int’l Airport Ser 2009 A (AGC Insd)
     5.00       10/01/25       682,311  
  2,500    
County of Miami-Dade, Miami Int’l Airport, Ser 2000 B (NATL-RE & FGIC Insd)
     5.75       10/01/24       2,585,525  
  830    
County of Miami-Dade, Public Improvement Bonds Ser DD (AMBAC Insd)
     7.75       10/01/15       1,057,603  
  2,460    
JEA, Water & Sewer Sub-Second Crossover Ser (NATL-RE Insd)
     5.00       10/01/24       2,562,803  
  5,000    
Orlando Utilities Commission, Water & Electric Ser 2001
     5.00       10/01/22       5,362,150  
  600    
Palm Beach County Solid Waste Authority, Ser 2009 (BHAC Insd)
     5.50       10/01/23       684,840  
  8,000    
South Miami Health Facilities Authority, Baptist Health South Florida Ser 2007
     5.00       08/15/42       7,811,520  
  1,000    
St Johns County Industrial Development Authority, Glenmoor Ser 2006 A
     5.25       01/01/26       783,180  
       
 
                      
       
 
                     23,549,712  
       
 
                      
       
Georgia (6.2%)
                        
  3,000    
City of Atlanta, Water & Wastewater Ser 1999 A (NATL-RE & FGIC Insd)
     5.50       11/01/22       3,289,410  
  2,000    
Georgia State Road & Tollway Authority, Ser 2003
     5.00       10/01/22       2,133,260  
  3,000    
Georgia State Road & Tollway Authority, Ser 2003
     5.00       10/01/23       3,190,410  
       
 
                      
       
 
                     8,613,080  
       
 
                      
       
Idaho (1.0%)
                        
  1,240    
Idaho Housing & Finance Association, Federal Highway Trust, Ser 2008 A (RANs) (AGC Insd)
     5.25       07/15/24       1,374,515  
       
 
                      
       
Illinois (9.7%)
                        
  2,500    
Chicago Park District, 2004 Ser A (AMBAC Insd)
     5.00       01/01/28       2,584,600  
  4,000    
City of Chicago, O’Hare Int’l Airport 3rd Lien Ser 2005 A (NATL-RE Insd)
     5.25       01/01/26       4,160,840  
  700    
City of Chicago, Refg Ser 1996 A-2 (NATL-RE Insd)
     5.50       01/01/18       802,445  
  3,300    
City of Chicago, Project & Refg Ser 2007 A (FGIC & AGM Insd) (CR) (a)(d)
     5.00       01/01/37       3,330,261  
  775    
Illinois Finance Authority, Resurrection Health Center, Refg Ser 2009
     6.125       05/15/25       777,511  
  295    
Illinois Finance Authority, Rush University Medical Center Obligated Group Ser 2009 A
     7.25       11/01/38       323,606  
  380    
Illinois Finance Authority, Ser 2009 B
     5.00       08/15/16       419,915  

 

 

Morgan Stanley Municipal Premium Income Trust*
Portfolio of Investments n February 28, 2010 (unaudited) continued
                                 
PRINCIPAL                        
AMOUNT IN         COUPON     MATURITY        
THOUSANDS         RATE     DATE     VALUE  
 
$ 540    
Illinois Finance Authority, Swedish Covenant Hospital Ser 2010 A
     5.75 %     08/15/29     $ 531,295  
  580    
Illinois Finance Authority, Swedish Covenant Hospital Ser 2010 A
     6.00       08/15/38       573,742  
       
 
                      
       
 
                     13,504,215  
       
 
                      
       
Indiana (2.2%)
                        
  2,700    
Indiana Health & Educational Facilities Financing Authority, Clarian Health Ser 2006 A
     5.25       02/15/40       2,589,894  
  375    
Rockport, Indian Michigan Power Company Project Refg Ser 2009 B
     6.25       06/01/25       419,317  
       
 
                      
       
 
                     3,009,211  
       
 
                      
       
Iowa (2.5%)
                        
  975    
State of Iowa, IJOBS Program Ser 2009 A (a)(d)
     5.00       06/01/25       1,069,451  
  730    
State of Iowa, IJOBS Program Ser 2009 A (a)(d)
     5.00       06/01/26       794,928  
  2,250    
Tobacco Settlement Authority of Iowa, Ser 2005 C
     5.50       06/01/42       1,640,408  
       
 
                      
       
 
                     3,504,787  
       
 
                      
       
Kansas (0.2%)
                        
  335    
Kansas Development Finance Authority Hospital Revenue, Adventist Health System Sunbelt Obligated Group Ser 2009 C
     5.50       11/15/29       354,621  
       
 
                      
       
Kentucky (2.8%)
                        
  450    
Kentucky Economic Development Finance Authority, Owensboro Medical Health System Ser 2010 — A (e)
     6.50       03/01/45       448,146  
  3,215    
Louisville & Jefferson County Metropolitan Sewer District, Ser 2001 A (NATL-RE Insd)
     5.375       05/15/22       3,432,881  
       
 
                      
       
 
                     3,881,027  
       
 
                      
       
Louisiana (4.7%)
                        
  750    
Louisiana Offshore Terminal Authority, Deepwater Port Ser 2007 B-2
     4.30       10/01/37       767,025  
  1,500    
Louisiana Public Facilities Authority, Baton Rouge General Medical Center-FHA Insured Mtge Ser 2004 (NATL-RE Insd)
     5.25       07/01/33       1,487,925  
  2,000    
Louisiana Public Facilities Authority, Ochsner Clinic Ser 2002
     5.50       05/15/26 (b)     2,351,400  
  2,000    
Parish of St John Baptist, Marathon Oil Corp. Ser 2007 A
     5.125       06/01/37       1,877,900  
       
 
                      
       
 
                     6,484,250  
       
 
                      
       
Maryland (2.7%)
                        
  505    
County of Baltimore, Oak Crest Village Ser 2007 A
     5.00       01/01/37       444,713  
  2,000    
Maryland Community Development Administration, Ser 2006 P (AMT)
     4.625       09/01/31       1,948,120  
  500    
Maryland Economic Development Corp., Ser B
     5.75       06/01/35       511,230  
  960    
Maryland Health & Higher Educational Facilities Authority, King Farm Presbyterian Community 2006 Ser B
     5.00       01/01/17       884,842  
       
 
                      
       
 
                     3,788,905  
       
 
                      
       
Michigan (1.5%)
                        
  1,145    
Detroit City School District, School Building and Site Improvement, Refg Ser 2005 A (AGM Insd)
     5.00       05/01/12       1,218,841  
  870    
Wayne State University, Refg Ser 2008 (AGM Insd)
     5.00       11/15/25       925,619  
       
 
                      
       
 
                     2,144,460  
       
 
                      
       
Minnesota (0.2%)
                        
  290    
Minnesota Housing Finance Agency, Rental 1995 Ser D (NATL-RE Insd)
     6.00       02/01/22       290,351  
       
 
                      
       
Missouri (2.2%)
                        
  1,465    
City of Fenton, Gravois Bluffs Refg Ser 2006
     4.50       04/01/21       1,462,407  

 

 

Morgan Stanley Municipal Premium Income Trust*
Portfolio of Investments n February 28, 2010 (unaudited) continued
                                 
PRINCIPAL                        
AMOUNT IN         COUPON     MATURITY        
THOUSANDS         RATE     DATE     VALUE  
 
$ 1,340    
Missouri State Health & Educational Facilities Authority, Baptist Medical Center Refg Ser 1989 (ETM)
     7.625 %     07/01/18     $ 1,548,692  
       
 
                      
       
 
                     3,011,099  
       
 
                      
       
Nevada (4.1%)
                        
  500    
County of Clark, McCarran International Airport Ser 2010 A
     5.125       07/01/34       494,820  
  290    
Las Vegas Redevelopment Agency, Tax Increment Ser 2009 A
     6.25       06/15/16       326,874  
  3,000    
Las Vegas Valley Water District, Improvement and Refg Ser 2003 A (NATL-RE & FGIC Insd)
     5.25       06/01/22       3,160,410  
  1,600    
State of Nevada, Capital Improvement & Cultural Affairs Ser 2008 C (AGM Insd) (a)
     5.00       06/01/26       1,683,126  
       
 
                      
       
 
                     5,665,230  
       
 
                      
       
New Hampshire (0.2%)
                        
  295    
New Hampshire Business Finance Authority, Ser 2009 (AMT)
     7.125       07/01/27       313,744  
       
 
                      
       
New Jersey (6.7%)
                        
  3,000    
City of Newark, Ser 2009 E (BANs)
     3.25       04/14/10       3,009,630  
  1,500    
New Jersey State Turnpike Authority, Ser 2003 A (AMBAC Insd)
     5.00       01/01/30       1,536,090  
  2,000    
Passaic Valley Sewage Commissioners, Ser F (NATL-RE & FGIC Insd)
     5.00       12/01/19       2,025,640  
  3,000    
Tobacco Settlement Financing Corp., Ser 2007-1 A
     4.625       06/01/26       2,487,600  
  3,000    
Tobacco Settlement Financing Corp., Ser 2007-1 B (c)
     0.00       06/01/41       195,390  
       
 
                      
       
 
                     9,254,350  
       
 
                      
       
New York (25.2%)
                        
  380    
Brooklyn Arena Local Development Corp., Ser 2009
     6.25       07/15/40       394,147  
  160    
Brooklyn Arena Local Development Corp., Ser 2009
     6.375       07/15/43       165,522  
  1,500    
City of New York, Tax-Exempt Bonds, Subseries H-1
     5.00       03/01/16       1,703,610  
  1,440    
City of New York, 2009 Subser A-1 (a)
     5.25       08/15/27       1,556,942  
  1,440    
City of New York, 2009 Subser A-1 (a)
     5.25       08/15/28       1,556,942  
  2,250    
Long Island Power Authority, Ser 2004 A (AMBAC Insd)
     5.00       09/01/34       2,278,058  
  3,000    
Metropolitan Transportation Authority, State Service Contract Refg Ser 2002 B (NATL-RE Insd)
     5.50       07/01/20       3,252,120  
  2,000    
New York City Industrial Development Agency, 7 World Trade Center, LLC Ser 2005 A
     6.25       03/01/15       2,022,820  
  2,000    
New York City Industrial Development Agency, Yankee Stadium Ser 2006 (FGIC Insd)
     5.00       03/01/46       1,870,580  
  935    
New York City Transitional Finance Authority, 2009 Subser A-1 (a)
     5.00       05/01/28       1,002,721  
  745    
New York City Transitional Finance Authority, 2009 Subser A-1 (a)
     5.00       05/01/29       798,960  
  745    
New York City Transitional Finance Authority, 2009 Subser A-1 (a)
     5.00       05/01/30       798,960  
  1,995    
New York State Dormitory Authority, Montefiore Hospital — FHA Insured Mtge Ser 2004 (FGIC Insd)
     5.00       08/01/29       2,043,040  
  505    
New York State Dormitory Authority, New York University (AMBAC Insd)
     5.50       05/15/29       557,752  
  1,110    
New York State Dormitory Authority, Ser B
     6.00       11/15/23       1,223,897  
  6,085    
New York State Dormitory Authority, Cornell University — Ser 2009 A (a)
     5.00       07/01/35       6,358,847  
  940    
New York State Thruway Authority, Personal Income Tax Transportation Ser 2009 A
     5.00       03/15/25       1,036,914  

 

 

Morgan Stanley Municipal Premium Income Trust*
Portfolio of Investments n February 28, 2010 (unaudited) continued
                                 
PRINCIPAL                        
AMOUNT IN         COUPON     MATURITY        
THOUSANDS         RATE     DATE     VALUE  
 
$ 3,000    
Triborough Bridge & Tunnel Authority, Refg Ser 2002 B
     5.25 %     11/15/19     $ 3,308,610  
  2,850    
Trust for Cultural Resources, The Museum of Modern Art, Refg Ser 2008-1 (a)
     5.00       04/01/26       3,106,224  
       
 
                      
       
 
                     35,036,666  
       
 
                      
       
Ohio (1.9%)
                        
  2,400    
American Municipal Power — Ohio Inc., Prairie State Energy Campus Ser 2008 A (AGC Insd) (a)
     5.25       02/15/33       2,500,456  
  190    
Ohio State Water Development Authority, Ser 2009 A
     5.875       06/01/33       208,704  
       
 
                      
       
 
                     2,709,160  
       
 
                      
       
Oregon (0.3%)
                        
  315    
Oregon State Department of Administrative Services, Ser 2009 A
     5.25       04/01/24       359,995  
       
 
                      
       
Pennsylvania (1.8%)
                        
  2,000    
Allegheny County Hospital Development Authority, West Penn Allegheny Health Ser 2007 A
     5.375       11/15/40       1,511,180  
  1,000    
City of Philadelphia, Gas Works Eighteenth Ser (AGC Insd)
     5.25       08/01/20       1,066,860  
       
 
                      
       
 
                     2,578,040  
       
 
                      
       
Puerto Rico (1.4%)
                        
  630    
Puerto Rico Sales Tax Financing Corp., Ser 2009 A
     5.00       08/01/39       661,544  
  575    
Puerto Rico Sales Tax Financing Corp., Ser 2010 A
     5.375       08/01/39       575,633  
  650    
Puerto Rico Sales Tax Financing Corp., Ser 2010 A
     5.50       08/01/42       650,955  
       
 
                      
       
 
                     1,888,132  
       
 
                      
       
Rhode Island (2.2%)
                        
  3,000    
Rhode Island Economic Development Corp., Airport 2005 Ser C (NATL-RE Insd)
     5.00       07/01/28       3,034,860  
       
 
                      
       
South Carolina (2.5%)
                        
  3,000    
Charleston County School District Development Corp., Ser 2004 A
     5.00       02/01/22       3,267,300  
  165    
County of Richland, Environmental Improvement, Paper Co. Ser 2007 A
     4.60       09/01/12       167,345  
  35    
Lexington County Health Services District, Inc., Ser 2007 A
     5.00       11/01/16       38,261  
       
 
                      
       
 
                     3,472,906  
       
 
                      
       
Tennessee (2.1%)
                        
  3,000    
Johnson City Health & Educational Facilities Board, Mountain States Health Alliance Ser 2006 A
     5.50       07/01/36       2,938,470  
       
 
                      
       
Texas (12.9%)
                        
  555    
Bexar County Health Facilities Development Corp., Army Ret. Residence Ser 2006
     5.00       07/01/27       496,730  
  735    
Bexar County Health Facilities Development Corp., Army Ret. Residence Ser 2006
     5.00       07/01/33       636,628  
  580    
Bexar County Health Facilities Development Corp., Army Ret. Residence Ser 2006
     5.00       07/01/37       489,503  
  1,000    
City of Arlington, Special Tax Ser 2009
     5.00       08/15/28       1,022,470  
  5,000    
City of Austin, Water & Wastewater Refg Ser 2001 A & B (AGM Insd) (a)
     5.125       05/15/27       5,164,900  
  2,320    
City of Houston, Combined Utility First Lien Refg 2004 Ser A (NATL-RE & FGIC Insd)
     5.25       05/15/23       2,499,475  
  300    
Harris County Industrial Development Corp., Deer Park Refinancing Project Ser 2009
     5.00       02/01/23       306,231  
  1,000    
Lubbock Health Facilities Development Corp., Carillon Senior Life Care Ser 2005 A
     6.625       07/01/36       894,010  

 

 

Morgan Stanley Municipal Premium Income Trust*
Portfolio of Investments n February 28, 2010 (unaudited) continued
                                 
PRINCIPAL                        
AMOUNT IN         COUPON     MATURITY        
THOUSANDS         RATE     DATE     VALUE  
 
$ 1,000    
North Texas Tollway Authority, First Tier Put, Ref Refg Ser 2008 L-2
     6.00 %     01/01/38     $ 1,113,080  
  4,100    
North Texas Tollway Authority, Refg Ser 2008 D (AGC Insd) (c)
     0.00       01/01/28       1,508,923  
  1,000    
Tarrant County Cultural Education Facilities Finance Corp., Air Force Village II Inc. Ser 2007
     5.125       05/15/37       837,660  
  430    
Texas Private Activity Bond Surface Transportation Corp., Senior Lien Ser 2009
     6.875       12/31/39       446,929  
  2,400    
University of Houston, Ser 2008 (AGM Insd) (a)
     5.00       02/15/33       2,486,104  
       
 
                      
       
 
                     17,902,643  
       
 
                      
       
Virginia (0.7%)
                        
  1,000    
Fairfax County Economic Development Authority, Goodwin House, Inc. Ser 2007
     5.125       10/01/42       917,970  
       
 
                      
       
Washington (10.1%)
                        
  2,400    
Goat Hill Properties, Governmental Office Ser 2005 (NATL-RE Insd)
     5.00       12/01/33       2,439,456  
  1,930    
Grant County Public Utility District No. 2 Priest Rapids, Wanapum Hydroelectric 2005 Ser A (NATL-RE & FGIC Insd)
     5.00       01/01/34       1,953,893  
  2,835    
Port of Seattle, Passenger Facility Ser 1998 A (NATL-RE Insd)
     5.00       12/01/23       2,844,497  
  2,120    
State of Washington, Motor Vehicle Fuel Tax, Ser 2004 F (AMBAC Insd) (c)
     0.00       12/01/29       844,778  
  1,710    
State of Washington, Various Purpose Ser 2010 A (a)
     5.00       08/01/29       1,829,317  
  1,795    
State of Washington, Various Purpose Ser 2010 A (a)
     5.00       08/01/30       1,920,248  
  2,000    
Washington Health Care Facilities Authority, Seattle Cancer Care Alliance Ser 2008
     7.375       03/01/38       2,217,200  
       
 
                      
       
 
                     14,049,389  
       
 
                      
       
Total Tax-Exempt Municipal Bonds (Cost $226,481,065)
                     229,594,120  
       
 
                      
       
Short-Term Tax-Exempt Municipal Obligations (6.1%)
                        
       
Alabama (0.4%)
                        
  600    
Southeast Alabama Gas District, Supply Project Ser A (Demand 03/01/10)
     0.15 (f)     08/01/27       600,000  
       
 
                      
       
Illinois (2.5%)
                        
  3,475    
City of Chicago (Demand 03/01/10)
     0.12 (f)     01/01/34       3,475,000  
       
 
                      
       
North Carolina (0.6%)
                        
  770    
North Carolina Medical Care Commission, Ser 1991 B (Demand 03/01/10)
     0.12 (f)     10/01/13       770,000  
       
 
                      
       
Ohio (1.4%)
                        
  2,000    
State of Ohio Higher Educational Facility Revenue Refg Bonds, Case Western Reserve University Project, Ser 2008 B-2 (Demand 03/01/10)
     0.16 (f)     12/01/44       2,000,000  
       
 
                      
       
Oklahoma (1.2%)
                        
  1,600    
Oklahoma Capital Improvement Authority (Demand 03/01/10)
     0.16 (f)     07/01/33       1,600,000  
       
 
                      
       
Total Short-Term Tax-Exempt Municipal Obligations
(Cost $8,445,000)
                     8,445,000  
       
 
                      
 
       
Total Investments (Cost $234,926,065) (g)(h)
             171.4 %     238,039,120  
       
Other Assets in Excess of Liabilities
             1.5       2,100,641  
       
Floating Rate Note and Dealer Trusts Obligations Related to Securities Held
                        
       
Notes with interest rates ranging from 0.18% to 0.23% at February 28, 2010 and contractual maturities of collateral ranging from 06/01/25-01/01/37 (i)
             (24.3 )     (33,804,000 )
       
Preferred Shares of Beneficial Interest
             (48.6 )     (67,500,000 )
       
 
                    
       
Net Assets Applicable to Common Shareholders
             100.0 %   $ 138,835,761  
       
 
                    
 
Note: The categories of investments are shown as a percentage of net assets applicable to common shareholders.
AMT   Alternative Minimum Tax.

 

 

Morgan Stanley Municipal Premium Income Trust*
Portfolio of Investments n February 28, 2010 (unaudited) continued
BANs   Bond Anticipation Notes.
 
COPs   Certificates of Participation.
 
CR   Custodial Receipts.
 
ETM   Escrowed to Maturity.
 
RANs   Revenue Anticipation Notes.
 
(a)   Underlying security related to inverse floater entered into by the Fund.
 
(b)   Prefunded to call date shown.
 
(c)   Capital appreciation bond.
 
(d)   Security is subject to a shortfall agreement which may require the Fund to pay amounts to a counterparty in the event of a significant decline in the market value of the security underlying the inverse floater. In case of a shortfall, the maximum potential amount of payments the Fund could ultimately be required to make under the agreement is $3,350,000. However, such shortfall payment would be reduced by the proceeds from the sale of the security underlying the inverse floater.
 
(e)   Security purchased on a when-issued basis.
 
(f)   Current coupon of variable rate demand obligation.
 
(g)   Securities have been designated as collateral in connection with inverse floating rate municipal obligations.
 
(h)   The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes.
 
(i)   Floating rate note obligations related to securities held — The Fund enters into transactions in which it transfers to Dealer Trusts (“Dealer Trusts”), fixed rate bonds in exchange for cash and residual interests in the Dealer Trusts’ assets and cash flows, which are in the form of inverse floating rate investments. The Dealer Trusts fund the purchases of the fixed rate bonds by issuing floating rate notes to third parties and allowing the Fund to retain residual interest in the bonds. The Fund enters into shortfall agreements with the Dealer Trusts which commit the Fund to pay the Dealer Trusts, in certain circumstances, the difference between the liquidation value of the fixed rate bonds held by the Dealer Trusts and the liquidation value of the floating rate notes held by third parties, as well as any shortfalls in interest cash flows. The residual interests held by the Fund (inverse floating rate investments) include the right of the Fund (1) to cause the holders of the floating rate notes to tender their notes at par at the next interest rate reset date, and (2) to transfer the municipal bond from the Dealer Trusts to the Fund, thereby collapsing the Dealer Trusts. The Fund accounts for the transfer of bonds to the Dealer Trusts as secured borrowings, with the securities transferred remaining in the Fund’s investment assets, and the related floating rate notes reflected as Fund liabilities. The notes issued by the Dealer Trusts have interest rates that reset weekly and the floating rate note holders have the option to tender their notes to the Dealer Trusts for redemption at par at each reset date. At February 28, 2010, Fund investments with a value of $52,603,142 are held by the Dealer Trusts and serve as collateral for the $33,804,000 in floating rate note obligations outstanding at that date.
Bond Insurance:
AGC   Assured Guaranty Corporation.
 
AGM   Assured Guaranty Municipal Corporation.
 
AMBAC   AMBAC Assurance Corporation.
 
BHAC   Berkshire Hathaway Assurance Corporation.
 
FGIC   Financial Guaranty Insurance Company.
 
NATL-RE   National Public Finance Guarantee Corporation.
 
XLCA   XL Capital Assurance Inc.

 

 

Morgan Stanley Municipal Premium Income Trust*
Notes to the Portfolio of Investments n February 28, 2010 (unaudited)
Fair Valuation Measurements
Fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. GAAP utilizes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund’s investments. The inputs are summarized in the three broad levels listed below.
  •   Level 1 — unadjusted quoted prices in active markets for identical investments
 
  •   Level 2 — other significant observable inputs (including quoted prices for similar investments, 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 necessarily an indication of the risk associated with investing in those securities and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each security.
The following is the summary of the inputs used as of February 28, 2010 in valuing the Fund’s investments carried at fair value:
                                 
    FAIR VALUE MEASUREMENTS AT FEBRUARY 28, 2010 USING  
            UNADJUSTED              
            QUOTED PRICES IN              
            ACTIVE MARKET     OTHER        
            FOR     SIGNIFICANT     SIGNIFICANT  
            IDENTICAL     OBSERVABLE     UNOBSERVABLE  
            INVESTMENTS     INPUTS     INPUTS  
INVESTMENT TYPE   TOTAL     (LEVEL 1)     (LEVEL 2)     (LEVEL 3)  
Tax-Exempt Municipal Bonds
   $ 229,594,120       —     $ 229,594,120       —  
Short-Term Tax-Exempt Municipal Obligations
     8,445,000       —       8,445,000       —  
 
                        
Total
   $ 238,039,120       —     $ 238,039,120       —  
 
                        
Valuation of Investments — (1) portfolio securities are valued by an outside independent pricing service approved by the Trustees. The pricing service uses both a computerized grid matrix of tax-exempt securities and evaluations by its staff, in each case based on information concerning market transactions and quotations from dealers which reflect the mean between the last reported bid and ask price. The portfolio securities are thus valued by reference to a combination of transactions and quotations for the same or other securities believed to be comparable in quality, coupon, maturity, type of issue, call provisions, trading characteristics and other features deemed to be relevant. The Trustees believe that timely and reliable market quotations are generally not readily available for purposes of valuing tax-exempt securities and that the valuations supplied by the pricing service are more likely to represent the fair value of such securities; (2) futures are valued at the latest sale price on the commodities exchange on which they trade unless it is determined that such price does not reflect their market value, in which case they will be valued at their fair value as determined in good faith under procedures established by and under the supervision of the Trustees; (3) interest rate swaps are marked-to-market daily based upon quotations from market makers; (4) short-term debt securities having a maturity date of more than sixty days at time of purchase are valued on a mark-to-market basis until sixty days prior to maturity and thereafter at amortized cost based on their value on the 61st day. Short-term debt securities having a maturity date of sixty days or

 

 

less at the time of purchase are valued at amortized cost, which approximates market value.
 
*   On October 19, 2009, Morgan Stanley announced that it has entered into a definitive agreement to sell substantially all of its retail asset management business to Invesco Ltd., a leading global investment management company. Subsequently, the Fund’s Board of Trustees approved recommending to the Fund’s stockholders the approval of a new Board for the Fund and a new investment advisory agreement with Invesco Advisers, Inc. and a master sub-advisory agreement with various affiliates of Invesco Advisers Inc. for the Fund in connection with a Special Meeting of Stockholders of the Fund anticipated to be held during the second quarter of 2010.

 

 

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.

 

 

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/ Randy Takian      
Randy Takian     
Principal Executive Officer
April 15, 2010 		    
 
     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/ Randy Takian      
Randy Takian     
Principal Executive Officer
April 15, 2010 		    
 
     
/s/ Francis Smith      
Francis Smith     
Principal Financial Officer
April 15, 2010