| UNITED STATES SECURITIES AND EXCHANGE COMMISSION | ||
| Washington, D.C. 20549 | ||
FORM N-CSR | ||
| CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES | ||
| Investment Company Act file number: | (811-05740) |
| Exact name of registrant as specified in charter: | Putnam Managed Municipal Income Trust |
| Address of principal executive offices: | 100 Federal Street, Boston, Massachusetts 02110 |
| Name and address of agent for service: | Robert T. Burns, Vice President 100 Federal Street Boston, Massachusetts 02110 |
| Copy to: | Bryan Chegwidden, Esq. Ropes & Gray LLP 1211 Avenue of the Americas New York, New York 10036 |
| Registrant's telephone number, including area code: | (617) 292-1000 |
| Date of fiscal year end: | October 31, 2021 |
| Date of reporting period: | November 1, 2020 — April 30, 2021 |
Item 1. Report to Stockholders: |
| The following is a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Investment Company Act of 1940: | |||
Putnam Managed
Municipal Income
Trust
Semiannual report
4 | 30 | 21
The fund has adopted a managed distribution policy (the “Distribution Policy”) with the goal of providing shareholders with a consistent, although not guaranteed, monthly distribution. In accordance with the Distribution Policy, the fund currently expects to make monthly distributions to common shareholders at a distribution rate per share of $0.0320. Distributions may include ordinary and/or tax-exempt income, net capital gains, and/or a return of capital of your investment in the fund. You should not draw any conclusions about the fund’s investment performance from the amount of this distribution or from the terms of the Distribution Policy. The Distribution Policy provides that the Board of Trustees may amend or terminate the Distribution Policy at any time without prior notice to fund shareholders.
Message from the Trustees
June 14, 2021
Dear Fellow Shareholder:
With summer at hand, it’s worth asking whether the economy has returned to normal. More than half of the 50 states have lifted pandemic-related restrictions. First-quarter growth in U.S. gross domestic product was 6%, reflecting a return nearly to pre-pandemic levels of economic output. The global economy is a different story. Beyond our shores, many nations lag the United States in vaccination rates and business activity.
While there are reasons to feel some relief, it’s important to recognize what may be a new normal. The pandemic is not in the past, and many of the changes precipitated by it could last. During this time, dynamic, well-managed companies have adapted to seize new, more sustainable growth opportunities.
Putnam’s active philosophy is well suited to this time. Putnam’s investment teams are analyzing companies, industries, consumers, and even governments. They try to understand the fundamentals of what has stayed the same and what has changed to uncover valuable investment insights or potential risks.
Thank you for investing with Putnam.
Putnam Managed Municipal Income Trust has the flexibility to invest in municipal bonds issued by any U.S. state or territory. As a closed-end fund, it shares some common characteristics with open-end mutual funds, but there are some key differences that investors should understand as they consider their portfolio.
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Looking at a closed-end fund’s performance
You will usually see that the NAV and the market price differ. The market price can be influenced by several factors that cause it to vary from the NAV, including fund distributions, changes in supply and demand for the fund’s shares, changing market conditions, and investor perceptions of the fund or its investment manager.
A mix of credit qualities
In addition to its flexible geographical focus, Putnam Managed Municipal Income Trust combines bonds of differing credit quality. The fund invests in high-quality bonds, but also includes an allocation to lower-rated bonds, which may offer higher income in return for more risk.
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Data are historical. Past performance does not guarantee future results. More recent returns may be less or more than those shown. Investment return and net asset value will fluctuate, and you may have a gain or a loss when you sell your shares. Performance assumes reinvestment of distributions and does not account for taxes. Fund returns in the bar chart are at NAV. See below and pages 10–11 for additional performance information, including fund returns at market price. Index and Lipper results should be compared with fund performance at NAV. Fund results reflect the use of leverage, while index results are unleveraged and Lipper results reflect varying use of, and methods for, leverage.
Returns for periods less than one year are cumulative.
All Bloomberg Barclays indices provided by Bloomberg Index Services Limited.
Lipper peer group average provided by Lipper, a Refinitiv company.
This comparison shows your fund’s performance in the context of broad market indexes for the six months ended 4/30/21. See above and pages 10–11 for additional fund performance information. Index descriptions can be found on page 13.
All Bloomberg Barclays indices provided by Bloomberg Index Services Limited.
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Paul, how did municipal bonds perform during the reporting period?
With an improving economic outlook and positive supply/demand technicals, the municipal bond market performed well on an absolute and relative basis, with much of the tailwind coming in the November 2020 to January 2021 time frame. The Bloomberg Barclays Municipal Bond Index [the benchmark] rose 2.62%, outperforming U.S. Treasuries and the broader U.S. fixed income markets. Unprecedented monetary and fiscal policy initiatives helped to ease the economic toll of the Covid-19 pandemic and allay investor fears. In November 2020, optimism increased with the Pfizer/BioNTech and Moderna announcements about the efficacy of their Covid-19 vaccines and the end of election uncertainty. In its final policy meeting of 2020, the Federal Reserve kept its key overnight interest rate near zero and remained committed to its bond-buying program to support the credit markets. The Fed indicated the measures would stay in place until its maximum employment and price stability goals were met.
The positive sentiment continued into 2021, on the heels of the $900 billion Covid-19 aid
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Credit qualities are shown as a percentage of the fund’s net assets (common and preferred shares) as of 4/30/21. A bond rated BBB or higher (SP-3 or higher, for short-term debt) is considered investment grade. This chart reflects the highest security rating provided by one or more of Standard & Poor’s, Moody’s, and Fitch. Ratings may vary over time.
Cash and net other assets, if any, represent the market value weights of cash, derivatives, and short-term securities in the portfolio. The fund itself has not been rated by an independent rating agency.
Top 10 state allocations are shown as a percentage of the fund’s net assets (common and preferred shares) as of 4/30/21. Investments in Puerto Rico represented 1.1% of the fund’s net assets. Summary information may differ from the portfolio schedule included in the financial statements due to the differing treatment of interest accruals, the floating rate portion of tender option bonds, derivative securities, if any, and the use of different classifications of securities for presentation purposes. Holdings and allocations may vary over time.
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bill passed in December 2020. Investors were also in an upbeat mood due to the Biden administration’s plans to boost the Covid-19 vaccine rollout and to pass another stimulus package to spur economic growth. However, municipals reversed course in February 2021, along with other interest rate-sensitive, fixed income securities. Investors worried that additional stimulus measures would accelerate the economic recovery and lead to rising inflation. This resulted in higher bond yields further out on the yield curve while short-term interest rates remained near zero, anchored by the Fed’s monetary policy. The sharp rise in bond yields unsettled the financial markets. Underscoring inflation fears, oil prices spiked to their highest level in more than a year on March 15, 2021.
Municipals regained their footing in March 2021, with President Biden’s signing of the $1.9 trillion American Rescue Plan. This Covid-19-relief bill included another round of stimulus checks and $350 billion in aid to state and local governments. Later in the month, with inflation concerns still on the minds of investors, the Fed downplayed the possibility that it would reduce its support for the economy any time soon. Fed officials also revised their economic outlook for stronger growth for 2021 and affirmed that they still expected to keep interest rates near zero until 2023.
What is your current assessment of the health of the municipal bond market?
Credit fundamentals continue to improve, in our view. We’ve seen an uptick in state and local tax revenue from second-quarter 2020 crisis levels, although states with income taxes have generally navigated the pandemic better than states that rely more on sales taxes. Furthermore, we believe improving economic activity, job growth, home-price appreciation, and the federal government’s direct aid to state and local governments are supporting a recovery in credit fundamentals. And despite pandemic-related challenges, defaults remained low and within long-term ranges during the period. In 2020, the default rate represented less than 0.25% of the overall municipal bond market, and defaults within the investment-grade-rated universe were a rare occurrence.
How did the fund perform during the reporting period?
For the six months ended April 30, 2021, the fund outperformed its benchmark and the average return of its Lipper peer group, High Yield Municipal Debt Funds [closed-end].
What strategies influenced the fund’s performance during the period?
At period-end, the fund held an overweight exposure to investment-grade bonds rated A and BBB relative to the benchmark. The fund also held a slightly underweight exposure to lower-rated, high-yield bonds relative to its Lipper peer group. From a sector- or industry-positioning perspective, we favored continuing-care retirement community, land-secured, and charter school bonds relative to the fund’s Lipper peer group. Duration positioning, a measure of the fund’s interest-rate sensitivity, was generally neutral relative to the level of its Lipper peer group at period-end. Our yield-curve strategy was defined by an overweight position in bonds with maturities of 10 to 20 years relative to the Lipper peer group at period-end. As part of this strategy, the fund held an underweight exposure to long maturity holdings compared with the benchmark.
The fund held an overweight exposure to revenue bonds compared with its Lipper peer group. The fund’s exposure to state and local governments was limited to those with, in our view, diverse tax bases and the ability to enact
| Managed Municipal Income Trust 7 |
broad revenue enhancements or expense cuts. As part of our strategy for state debt, we held an overweight exposure to Illinois relative to the Lipper peer group. We believe Illinois’s financial profile continues to stabilize and that its flexibility and credit fundamentals were not completely reflected by market spreads.
We remain cautious about Puerto Rico due to what we believe are its seemingly fragile economy, weak demographic trends, poor-quality infrastructure, volatile political environment, and history of fiscal mismanagement. As such, the fund remained underweight in its exposure to uninsured Puerto Rico municipal debt relative to its Lipper peer group. We continue to monitor the Commonwealth’s ongoing restructuring efforts for potential opportunities.
What is your outlook for the municipal bond market in the coming months?
More than a year after the World Health Organization announced that the coronavirus outbreak had reached the level of a pandemic, we believe we are coming out on the other side of this health crisis with the aid of multiple relief packages and medical advancements. The recent cash infusions provided by the American Rescue Plan should help state and local governments enter their 2022 budget sessions with enough cash on hand to help absorb the economic stress of the pandemic, in our view.
If an infrastructure bill is passed, it would likely be a positive for many municipal borrowers, particularly state and local governments, transit agencies, airports, and other entities that typically finance transportation infrastructure. Water/sewer and electric utilities are also likely to benefit from a broad infrastructure bill. Federal grants for these projects would reduce the need for municipal borrowers to issue debt to cover these essential services. This could increase fiscal flexibility for these borrowers while avoiding higher debt burdens.
In addition, we believe that with the easing of mobility restrictions and the American Rescue Plan, U.S. economic growth will be strong in 2021. At the same time, the Fed remains committed to its twin goals of maximum employment and 2% sustained inflation. With
This chart shows how the fund’s top weightings have changed over the past six months. Allocations are shown as a percentage of the fund’s net assets (common and preferred shares). Current period summary information may differ from the information in the portfolio schedule notes included in the financial statements due to the inclusion of derivative securities, any interest accruals, the timing of matured security transactions, the use of different classifications of securities for presentation purposes, and rounding. Holdings and allocations may vary over time.
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these and other factors at play, we believe the greatest opportunities reside in the lower parts of the investment-grade universe as well as the high-yield sectors at this point in the economic recovery.
Thank you, Paul, for your time and insights today.
The views expressed in this report are exclusively those of Putnam Management and are subject to change. They are not meant as investment advice.
Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk. Statements in the Q&A concerning the fund’s performance or portfolio composition relative to those of the fund’s Lipper peer group may reference information produced by Lipper Inc. or through a third party.
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Your fund’s performance
This section shows your fund’s performance, price, and distribution information for periods ended April 30, 2021, the end of the first half of its current fiscal year. In accordance with regulatory requirements for mutual funds, we also include performance information as of the most recent calendar quarter-end. Performance should always be considered in light of a fund’s investment strategy. Data represent past performance. Past performance does not guarantee future results. More recent returns may be less or more than those shown. Investment return, net asset value, and market price will fluctuate, and you may have a gain or a loss when you sell your shares.
Fund performance Total return and comparative index results for periods ended 4/30/21
| Annual | |||||||||
| average | |||||||||
| Life of | |||||||||
| fund (since | Annual | Annual | Annual | ||||||
| 2/24/89) | 10 years | average | 5 years | average | 3 years | average | 1 year | 6 months | |
| NAV | 6.52% | 103.97% | 7.39% | 30.09% | 5.40% | 23.22% | 7.21% | 20.73% | 7.54% |
| Market price | 6.37 | 112.09 | 7.81 | 37.39 | 6.56 | 35.19 | 10.57 | 29.78 | 10.68 |
| Bloomberg Barclays | |||||||||
| Municipal Bond | |||||||||
| Index | 5.75 | 54.38 | 4.44 | 18.84 | 3.51 | 16.86 | 5.33 | 7.75 | 2.62 |
| Lipper High Yield | |||||||||
| Municipal Debt | |||||||||
| Funds (closed-end)* | 5.81 | 106.02 | 7.45 | 27.27 | 4.93 | 21.19 | 6.61 | 18.81 | 7.44 |
Performance assumes reinvestment of distributions and does not account for taxes.
Index and Lipper results should be compared with fund performance at net asset value. Fund results reflect the use of leverage, while index results are unleveraged and Lipper results reflect varying use of, and methods for, leverage.
All Bloomberg Barclays indices provided by Bloomberg Index Services Limited.
* Over the 6-month, 1-year, 3-year, 5-year, 10-year, and life-of-fund periods ended 4/30/21 , there were 12, 12, 11, 11, 11, and 6 funds, respectively, in this Lipper category.
Performance includes the deduction of management fees and administrative expenses.
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Fund price and distribution information For the six-month period ended 4/30/21
| Distributions | |||
| Number | 6 | ||
| Income1 | $0.1920 | ||
| Capital gains2 | — | ||
| Total | $0.1920 | ||
| Series A | Series C | ||
| Distributions — preferred shares | (240 shares) | (1,507 shares) | |
| Number | |||
| Income1 | $75.49 | $40.59 | |
| Capital gains2 | — | — | |
| Total | $75.49 | $40.59 | |
| Share value | NAV | Market price | |
| 10/31/20 | $7.91 | $7.64 | |
| 4/30/21 | 8.31 | 8.26 | |
| Current dividend rate (end of period) | NAV | Market price | |
| Current dividend rate3 | 4.62% | 4.65% | |
| Taxable equivalent4 | 7.80 | 7.85 |
The classification of distributions, if any, is an estimate. Final distribution information will appear on your year-end tax forms.
1 For some investors, investment income may be subject to the federal alternative minimum tax. Income from federally exempt funds may be subject to state and local taxes.
2 Capital gains, if any, are taxable for federal and, in most cases, state purposes.
3 Most recent distribution, including any return of capital and excluding capital gains, annualized and divided by NAV or market price at end of period.
4 Assumes maximum 40.80% federal tax rate for 2021. Results for investors subject to lower tax rates would not be as advantageous.
Fund performance as of most recent calendar quarter Total return for periods ended 3/31/21
| Annual | |||||||||
| average | |||||||||
| Life of | |||||||||
| fund (since | Annual | Annual | Annual | ||||||
| 2/24/89) | 10 years | average | 5 years | average | 3 years | average | 1 year | 6 months | |
| NAV | 6.48% | 103.76% | 7.38% | 29.23% | 5.26% | 20.99% | 6.56% | 14.43% | 5.86% |
| Market price | 6.33 | 109.16 | 7.66 | 37.80 | 6.62 | 32.54 | 9.85 | 18.90 | 8.94 |
See the discussion following the fund performance table on page 10 for information about the calculation of fund performance.
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Consider these risks before investing
Lower-rated bonds may offer higher yields in return for more risk. Bond investments are subject to interest-rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments). Interest-rate risk is generally greater for longer-term bonds, and credit risk is generally greater for below-investment-grade bonds. Unlike bonds, funds that invest in bonds have fees and expenses. The value of investments in the fund’s portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political, or financial market conditions; investor sentiment and market perceptions; government actions; geopolitical events or changes; and factors related to a specific issuer, geography, industry, or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund’s portfolio holdings. You can lose money by investing in the fund. The fund’s shares trade on a stock exchange at market prices, which may be lower than the fund’s net asset value. Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the fund may not perform as well as other securities that we do not select for the fund. We, or the fund’s other service providers, may experience disruptions or operating errors that could have a negative effect on the fund. You can lose money by investing in the fund.
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Terms and definitions
Important terms
Total return shows how the value of the fund’s shares changed over time, assuming you held the shares through the entire period and reinvested all distributions in the fund.
Net asset value (NAV) is the value of all your fund’s assets, minus any liabilities, divided by the number of outstanding shares.
Market price is the current trading price of one share of the fund. Market prices are set by transactions between buyers and sellers on exchanges such as the New York Stock Exchange.
Fixed-income terms
Current rate is the annual rate of return earned from dividends or interest of an investment. Current rate is expressed as a percentage of the price of a security, fund share, or principal investment.
Yield curve is a graph that plots the yields of bonds with equal credit quality against their differing maturity dates, ranging from shortest to longest. It is used as a benchmark for other debt, such as mortgage or bank lending rates.
Comparative indexes
Bloomberg Barclays Municipal Bond Index is an unmanaged index of long-term fixed-rate investment-grade tax-exempt bonds.
Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged index of U.S. investment-grade fixed-income securities.
ICE BofA (Intercontinental Exchange Bank of America) U.S. 3-Month Treasury Bill Index is an unmanaged index that seeks to measure the performance of U.S. Treasury bills available in the marketplace.
S&P 500 Index is an unmanaged index of common stock performance.
Indexes assume reinvestment of all distributions and do not account for fees. Securities and performance of a fund and an index will differ. You cannot invest directly in an index.
BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or limited, as to the results to be obtained therefrom, and to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.
ICE Data Indices, LLC (“ICE BofA”), used with permission. ICE BofA permits use of the ICE BofA indices and related data on an “as is” basis; makes no warranties regarding same; does not guarantee the suitability, quality, accuracy, timeliness, and/or completeness of the ICE BofA indices or any data included in, related to, or derived therefrom; assumes no liability in connection with the use of the foregoing; and does not sponsor, endorse, or recommend Putnam Investments, or any of its products or services.
Lipper, a Refinitiv company, is a third-party industry-ranking entity that ranks mutual funds. Its rankings do not reflect sales charges. Lipper rankings are based on total return at net asset value relative to other funds that have similar current investment styles or objectives as determined by Lipper. Lipper may change a fund’s category assignment at its discretion. Lipper category averages reflect performance trends for funds within a category.
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Other information for shareholders
Important notice regarding share repurchase program
In September 2020, the Trustees of your fund approved the renewal of a share repurchase program that had been in effect since 2005. This renewal allows your fund to repurchase, in the 365 days beginning October 1, 2020, up to 10% of the fund’s common shares outstanding as of September 30, 2020.
Important notice regarding delivery of shareholder documents
In accordance with Securities and Exchange Commission (SEC) regulations, Putnam sends a single notice of internet availability, or a single printed copy, of annual and semiannual shareholder reports, prospectuses, and proxy statements to Putnam shareholders who share the same address, unless a shareholder requests otherwise. If you prefer to receive your own copy of these documents, please call Putnam at 1-800-225-1581, and Putnam will begin sending individual copies within 30 days.
Proxy voting
Putnam is committed to managing our mutual funds in the best interests of our shareholders. The Putnam funds’ proxy voting guidelines and procedures, as well as information regarding how your fund voted proxies relating to portfolio securities during the 12-month period ended June 30, 2020, are available in the Individual Investors section of putnam.com and on the SEC’s website, www.sec.gov. If you have questions about finding forms on the SEC’s website, you may call the SEC at 1-800-SEC-0330. You may also obtain the Putnam funds’ proxy voting guidelines and procedures at no charge by calling Putnam’s Shareholder Services at 1-800-225-1581.
Fund portfolio holdings
The fund will file a complete schedule of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT within 60 days of the end of such fiscal quarter. Shareholders may obtain the fund’s Form N-PORT on the SEC’s website at www.sec.gov.
Prior to its use of Form N-PORT, the fund filed its complete schedule of its portfolio holdings with the SEC on Form N-Q, which is available online at www.sec.gov.
Trustee and employee fund ownership
Putnam employees and members of the Board of Trustees place their faith, confidence, and, most importantly, investment dollars in Putnam mutual funds. As of April 30, 2021, Putnam employees had approximately $580,000,000 and the Trustees had approximately $81,000,000 invested in Putnam mutual funds. These amounts include investments by the Trustees’ and employees’ immediate family members as well as investments through retirement and deferred compensation plans.
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Summary of Putnam closed-end funds’ amended
and restated dividend reinvestment plans
Putnam Managed Municipal Income Trust, Putnam Master Intermediate Income Trust, Putnam Municipal Opportunities Trust and Putnam Premier Income Trust (each, a “Fund” and collectively, the “Funds”) each offer a dividend reinvestment plan (each, a “Plan” and collectively, the “Plans”). If you participate in a Plan, all income dividends and capital gain distributions are automatically reinvested in Fund shares by the Fund’s agent, Putnam Investor Services, Inc. (the “Agent”). If you are not participating in a Plan, every month you will receive all dividends and other distributions in cash, paid by check and mailed directly to you.
Upon a purchase (or, where applicable, upon registration of transfer on the shareholder records of a Fund) of shares of a Fund by a registered shareholder, each such shareholder will be deemed to have elected to participate in that Fund’s Plan. Each such shareholder will have all distributions by a Fund automatically reinvested in additional shares, unless such shareholder elects to terminate participation in a Plan by instructing the Agent to pay future distributions in cash. Shareholders who were not participants in a Plan as of January 31, 2010, will continue to receive distributions in cash but may enroll in a Plan at any time by contacting the Agent.
If you participate in a Fund’s Plan, the Agent will automatically reinvest subsequent distributions, and the Agent will send you a confirmation in the mail telling you how many additional shares were issued to your account.
To change your enrollment status or to request additional information about the Plans, you may contact the Agent either in writing, at P.O. Box 8383, Boston, MA 02266-8383, or by telephone at 1-800-225-1581 during normal East Coast business hours.
How you acquire additional shares through a Plan If the market price per share for your Fund’s shares (plus estimated brokerage commissions) is greater than or equal to their net asset value per share on the payment date for a distribution, you will be issued shares of the Fund at a value equal to the higher of the net asset value per share on that date or 95% of the market price per share on that date.
If the market price per share for your Fund’s shares (plus estimated brokerage commissions) is less than their net asset value per share on the payment date for a distribution, the Agent will buy Fund shares for participating accounts in the open market. The Agent will aggregate open-market purchases on behalf of all participants, and the average price (including brokerage commissions) of all shares purchased by the Agent will be the price per share allocable to each participant. The Agent will generally complete these open-market purchases within five business days following the payment date. If, before the Agent has completed open-market purchases, the market price per share (plus estimated brokerage commissions) rises to exceed the net asset value per share on the payment date, then the purchase price may exceed the net asset value per share, potentially resulting in the acquisition of fewer shares than if the distribution had been paid in newly issued shares.
How to withdraw from a Plan Participants may withdraw from a Fund’s Plan at any time by notifying the Agent, either in writing or by telephone. Such withdrawal will be effective immediately if notice is received by the Agent with sufficient time prior to any distribution record date; otherwise, such withdrawal will be effective with respect to any subsequent distribution following notice of withdrawal. There is no penalty for withdrawing from or not participating in a Plan.
Plan administration The Agent will credit all shares acquired for a participant under a Plan to the account in which the participant’s common shares are held. Each participant will
| Managed Municipal Income Trust 15 |
be sent reasonably promptly a confirmation by the Agent of each acquisition made for his or her account.
About brokerage fees Each participant pays a proportionate share of any brokerage commissions incurred if the Agent purchases additional shares on the open market, in accordance with the Plans. There are no brokerage charges applied to shares issued directly by the Funds under the Plans.
About taxes and Plan amendments
Reinvesting dividend and capital gain distributions in shares of the Funds does not relieve you of tax obligations, which are the same as if you had received cash distributions. The Agent supplies tax information to you and to the IRS annually. Each Fund reserves the right to amend or terminate its Plan upon 30 days’ written notice. However, the Agent may assign its rights, and delegate its duties, to a successor agent with the prior consent of a Fund and without prior notice to Plan participants.
If your shares are held in a broker or nominee name If your shares are held in the name of a broker or nominee offering a dividend reinvestment service, consult your broker or nominee to ensure that an appropriate election is made on your behalf. If the broker or nominee holding your shares does not provide a reinvestment service, you may need to register your shares in your own name in order to participate in a Plan.
In the case of record shareholders such as banks, brokers or nominees that hold shares for others who are the beneficial owners of such shares, the Agent will administer the Plan on the basis of the number of shares certified by the record shareholder as representing the total amount registered in such shareholder’s name and held for the account of beneficial owners who are to participate in the Plan.
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Financial statements
These sections of the report, as well as the accompanying Notes, constitute the fund’s financial statements.
The fund’s portfolio lists all the fund’s investments and their values as of the last day of the reporting period. Holdings are organized by asset type and industry sector, country, or state to show areas of concentration and diversification.
Statement of assets and liabilities shows how the fund’s net assets and share price are determined. All investment and non-investment assets are added together. Any unpaid expenses and other liabilities are subtracted from this total. The result is divided by the number of shares to determine the net asset value per share. (For funds with preferred shares, the amount subtracted from total assets includes the liquidation preference of preferred shares.)
Statement of operations shows the fund’s net investment gain or loss. This is done by first adding up all the fund’s earnings — from dividends and interest income — and subtracting its operating expenses to determine net investment income (or loss). Then, any net gain or loss the fund realized on the sales of its holdings — as well as any unrealized gains or losses over the period — is added to or subtracted from the net investment result to determine the fund’s net gain or loss for the fiscal period.
Statement of changes in net assets shows how the fund’s net assets were affected by the fund’s net investment gain or loss, by distributions to shareholders, and by changes in the number of the fund’s shares. It lists distributions and their sources (net investment income or realized capital gains) over the current reporting period and the most recent fiscal year-end. The distributions listed here may not match the sources listed in the Statement of operations because the distributions are determined on a tax basis and may be paid in a different period from the one in which they were earned. Dividend sources are estimated at the time of declaration. Actual results may vary. Any non-taxable return of capital cannot be determined until final tax calculations are completed after the end of the fund’s fiscal year.
Financial highlights provide an overview of the fund’s investment results, per-share distributions, expense ratios, net investment income ratios, and portfolio turnover in one summary table, reflecting the five most recent reporting periods. In a semiannual report, the highlights table also includes the current reporting period.
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The fund’s portfolio 4/30/21 (Unaudited)
Key to holding’s abbreviations
| ABAG Association Of Bay Area Governments | the rate may represent a fixed rate currently in place | ||
| AGM Assured Guaranty Municipal Corporation | at the close of the reporting period. | ||
| AMBAC AMBAC Indemnity Corporation | G.O. Bonds General Obligation Bonds | ||
| BAM Build America Mutual | IO Interest Only | ||
| COP Certificates of Participation | PO Principal Only | ||
| FRB Floating Rate Bonds: the rate shown is the current | PSFG Permanent School Fund Guaranteed | ||
| interest rate at the close of the reporting period. Rates | Q-SBLF Qualified School Board Loan Fund | ||
| may be subject to a cap or floor. For certain securities, | U.S. Govt. Coll. U.S. Government Collateralized |
| MUNICIPAL BONDS AND NOTES (127.6%)* | Rating** | Principal amount | Value |
| Alabama (1.9%) | |||
| Jefferson Cnty., Swr. Rev. Bonds | |||
| Ser. D, 6.50%, 10/1/53 | BBB | $500,000 | $590,011 |
| zero %, 10/1/46 | BBB | 3,950,000 | 4,051,037 |
| Jefferson, Cnty. Rev. Bonds, (Refunding warrants) | |||
| 5.00%, 9/15/34 | AA | 2,075,000 | 2,541,257 |
| 5.00%, 9/15/33 | AA | 275,000 | 336,760 |
| 7,519,065 | |||
| Alaska (2.9%) | |||
| AK State Indl. Dev. & Export Auth. Rev. Bonds, | |||
| (Tanana Chiefs Conference), Ser. A, 4.00%, 10/1/44 | A+/F | 4,750,000 | 5,363,743 |
| Northern Tobacco Securitization Corp. Rev. Bonds, | |||
| Ser. A, 5.00%, 6/1/46 | B3 | 6,370,000 | 6,450,115 |
| 11,813,858 | |||
| Arizona (3.8%) | |||
| AZ State Indl. Dev. Auth. Ed. 144A Rev. Bonds | |||
| (BASIS Schools, Inc.), Ser. G, 5.00%, 7/1/37 | BB | 500,000 | 572,148 |
| (Somerset Academy of Las Vegas), 4.00%, | |||
| 12/15/41 ## | BB | 500,000 | 542,836 |
| La Paz Cnty., Indl. Dev. Auth. Ed. Fac. Rev. Bonds, | |||
| (Harmony Pub. Schools), Ser. A | |||
| 5.00%, 2/15/48 | BBB | 2,330,000 | 2,693,380 |
| 5.00%, 2/15/38 | BBB | 500,000 | 586,372 |
| Maricopa Cnty., Indl. Dev. Auth. Ed. Rev. Bonds, | |||
| (Horizon Cmnty. Learning Ctr.), 5.00%, 7/1/35 | BB+ | 750,000 | 820,412 |
| Phoenix, Indl. Dev. Auth. Ed. Rev. Bonds | |||
| (Great Hearts Academies), 6.00%, 7/1/32 | |||
| (Prerefunded 7/1/21) | AAA/P | 200,000 | 201,819 |
| (Choice Academies, Inc.), 5.625%, 9/1/42 | BB | 315,000 | 324,566 |
| (Great Hearts Academies), 5.00%, 7/1/44 | BBB– | 1,700,000 | 1,828,632 |
| (Choice Academies, Inc.), 4.875%, 9/1/22 | BB | 290,000 | 297,311 |
| Phoenix, Indl. Dev. Auth. Ed. 144A Rev. Bonds, | |||
| (BASIS Schools, Inc.) | |||
| Ser. A, 5.00%, 7/1/46 | BB | 250,000 | 271,849 |
| 5.00%, 7/1/35 | BB | 900,000 | 992,804 |
| Ser. A, 5.00%, 7/1/35 | BB | 600,000 | 661,870 |
| 18 Managed Municipal Income Trust |
| MUNICIPAL BONDS AND NOTES (127.6%)* cont. | Rating** | Principal amount | Value |
| Arizona cont. | |||
| Salt Verde, Fin. Corp. Gas Rev. Bonds | |||
| 5.50%, 12/1/29 | A3 | $2,000,000 | $2,624,653 |
| 5.00%, 12/1/32 | A3 | 570,000 | 757,432 |
| Yavapai Cnty., Indl. Dev. Auth. Hosp. Fac. Rev. Bonds | |||
| (Yavapai Regl. Med.), 5.00%, 8/1/36 | A2 | 200,000 | 236,612 |
| (Yavapai Regl. Med. Ctr.), 5.00%, 8/1/34 | A2 | 200,000 | 236,856 |
| Yavapai Cnty., Indl. Dev. Ed. Auth. Rev. Bonds, | |||
| (Agribusiness & Equine Ctr.), 5.00%, 3/1/32 | BB+ | 1,000,000 | 1,036,603 |
| Yavapai Cnty., Indl. Dev. Ed. Auth. 144A Rev. Bonds, | |||
| Ser. A, 5.00%, 9/1/34 | BB+ | 500,000 | 544,547 |
| 15,230,702 | |||
| Arkansas (0.7%) | |||
| AR Dev. Fin. Auth. Hlth. Care Rev. Bonds, | |||
| (Baptist Health Oblig. Group) | |||
| 5.00%, 12/1/47 | A | 600,000 | 736,224 |
| 4.00%, 12/1/44 | A | 610,000 | 682,402 |
| 4.00%, 12/1/39 | A | 585,000 | 667,052 |
| 4.00%, 12/1/37 | A | 805,000 | 922,282 |
| 3,007,960 | |||
| California (7.4%) | |||
| ABAG Fin. Auth. for Nonprofit Corps. Rev. Bonds, | |||
| (Episcopal Sr. Cmntys.), 6.00%, 7/1/31 | A–/F | 660,000 | 665,405 |
| CA Cmnty. Hsg. Agcy. Essential Hsg. 144A Rev. Bonds | |||
| (Aster Apt.), Ser. A-1, 4.00%, 2/1/56 | BB+/P | 475,000 | 525,874 |
| (Creekwood Apt.), Ser. A, 4.00%, 2/1/56 | BB–/P | 1,100,000 | 1,174,276 |
| (Stoneridge Apt.), Ser. A, 4.00%, 2/1/56 | BB/P | 1,725,000 | 1,836,675 |
| (Glendale Properties), Ser. A-2, 4.00%, 8/1/47 | B+/P | 1,100,000 | 1,181,264 |
| CA Hsg. Fin. Agcy. Muni. Certif. Rev. Bonds, Ser. 21-1, | |||
| Class A, 3.50%, 11/20/35 | BBB+ | 1,722,973 | 2,005,209 |
| CA School Fin. Auth. Rev. Bonds, (2023 Union, LLC), | |||
| Ser. A, 6.00%, 7/1/33 | BBB– | 465,000 | 509,764 |
| CA State Muni. Fin. Auth. Charter School Rev. Bonds, | |||
| (Partnerships Uplift Cmnty.), Ser. A, 5.00%, 8/1/32 | BB | 665,000 | 682,210 |
| CA State Poll. Control Fin. Auth. Rev. Bonds, | |||
| (San Jose Wtr. Co.), 4.75%, 11/1/46 | A | 1,100,000 | 1,257,160 |
| CA State Poll. Control Fin. Auth. 144A Rev. Bonds, | |||
| (Wtr. Furnishing), 5.00%, 11/21/45 | Baa3 | 1,000,000 | 1,059,803 |
| CA State Tobacco Securitization Agcy. Rev. Bonds | |||
| Ser. B-2, zero %, 6/1/55 | BB/P | 4,900,000 | 958,016 |
| (Gold Country Settlement Funding Corp.), Ser. B-2, | |||
| zero %, 6/1/55 | BB/P | 5,570,000 | 1,429,769 |
| CA Statewide Cmnty. Dev. Auth. Rev. Bonds | |||
| (Terraces at San Joaquin Gardens), Ser. A, 6.00%, | |||
| 10/1/47 (Prerefunded 10/1/22) | BB/P | 1,345,000 | 1,454,252 |
| (899 Charleston, LLC), Ser. A, 5.25%, 11/1/44 | BB/P | 450,000 | 473,101 |
| CMFA Special Fin. Agcy. I 144A Rev. Bonds, | |||
| (Social Bond), Ser. A-2, 4.00%, 4/1/56 | BB/P | 1,500,000 | 1,590,697 |
| CSCDA Cmnty. Impt. Auth. 144A Rev. | |||
| Bonds, (Jefferson-Anaheim) | |||
| 3.125%, 8/1/56 | BB+/P | 1,125,000 | 1,084,585 |
| 2.875%, 8/1/41 | BB+/P | 975,000 | 971,263 |
| Managed Municipal Income Trust 19 |
| MUNICIPAL BONDS AND NOTES (127.6%)* cont. | Rating** | Principal amount | Value |
| California cont. | |||
| Golden State Tobacco Securitization Corp. Rev. | |||
| Bonds, Ser. A-2, 5.00%, 6/1/47 | BB/P | $5,000,000 | $5,166,261 |
| Hastings Campus HFA Rev. Bonds, (U. of CA Hastings | |||
| College of the Law), Ser. A, 5.00%, 7/1/61 | BB–/P | 1,200,000 | 1,375,377 |
| La Verne, COP, (Brethren Hillcrest Homes), 5.00%, | |||
| 5/15/36 (Prerefunded 5/15/22) | AAA/P | 325,000 | 344,365 |
| Rancho Cordova, Cmnty. Fac. Dist. Special Tax | |||
| Bonds, (Sunridge Anatolia), Ser. 03-1, 5.00%, 9/1/37 | BBB–/P | 350,000 | 365,944 |
| Sacramento, Special Tax, (Greenbriar Cmnty. Fac. | |||
| Dist. No 2018-03), 4.00%, 9/1/46 | BB/P | 700,000 | 786,568 |
| San Francisco, City & Cnty. Redev. Agcy. Cmnty. | |||
| Successor Special Tax Bonds, (No. 6 Mission Bay | |||
| Pub. Impts.), Ser. C | |||
| zero %, 8/1/43 | BBB/P | 2,000,000 | 578,549 |
| zero %, 8/1/38 | BBB/P | 2,000,000 | 782,853 |
| Sunnyvale, Special Tax Bonds, (Cmnty. Fac. Dist. | |||
| No. 1), 7.75%, 8/1/32 | B+/P | 835,000 | 838,238 |
| Tobacco Securitization Auth. of Northern CA Rev. | |||
| Bonds, (Sacramento Cnty., Tobacco Securitization | |||
| Corp.), Ser. B-2, zero %, 6/1/60 | BB/P | 2,250,000 | 541,432 |
| Yucaipa Special Tax Bonds, (Cmnty. Fac. Dist. | |||
| No. 98-1 Chapman Heights), 5.375%, 9/1/30 | A | 375,000 | 380,389 |
| 30,019,299 | |||
| Colorado (3.0%) | |||
| Aviation Station North Metro. Dist. No. 2 G.O. Bonds, | |||
| Ser. A, 5.00%, 12/1/48 | B+/P | 850,000 | 912,953 |
| Broadway Station Metro. Dist. No. 2 Co. G.O. Bonds, | |||
| Ser. A, 5.125%, 12/1/48 | B/P | 500,000 | 544,664 |
| CO State Educ. & Cultural Fac. Auth. Rev. Bonds, | |||
| (Skyview Academy), 5.125%, 7/1/34 | BB | 755,000 | 812,895 |
| CO State Hlth. Fac. Auth. Rev. Bonds | |||
| (Christian Living Cmnty.), 6.375%, 1/1/41 | BB/P | 810,000 | 829,688 |
| (Evangelical Lutheran Good Samaritan | |||
| Society Oblig. Group (The)), 5.625%, 6/1/43 | |||
| (Prerefunded 6/1/23) | AAA/P | 250,000 | 278,236 |
| CO State Hlth. Fac. Auth. Hosp. Rev. Bonds, | |||
| (Christian Living Neighborhood) | |||
| 5.00%, 1/1/37 | BB/P | 1,250,000 | 1,336,136 |
| 5.00%, 1/1/31 | BB/P | 500,000 | 539,545 |
| Eaton, Area Park & Recreation Dist. G.O. Bonds, | |||
| 5.25%, 12/1/34 (Prerefunded 12/1/22) | BB/P | 220,000 | 237,280 |
| Park Creek, Metro. Dist. Tax Allocation Bonds, | |||
| (Sr. Ltd. Property Tax Supported), Ser. A, | |||
| 5.00%, 12/1/45 | A/F | 225,000 | 258,979 |
| Parkdale, Cmnty. Auth. Rev. Bonds, (Metro. Dist. | |||
| No. 1), Ser. A, 5.00%, 12/1/40 | B/P | 1,000,000 | 1,089,732 |
| Plaza, Tax Alloc. Bonds, (Metro. Dist. No. 1), | |||
| 5.00%, 12/1/40 | BB–/P | 1,650,000 | 1,702,701 |
| RainDance Metro. Dist. No. 1 Rev. Bonds, | |||
| (Non-Potable Wtr. Enterprise), 5.25%, 12/1/50 | B+/P | 875,000 | 954,297 |
| 20 Managed Municipal Income Trust |
| MUNICIPAL BONDS AND NOTES (127.6%)* cont. | Rating** | Principal amount | Value |
| Colorado cont. | |||
| Southlands, Metro. Dist. No. 1 G.O. Bonds, Ser. A-1, | |||
| 5.00%, 12/1/37 | Ba1 | $500,000 | $571,155 |
| STC Metro. Dist. No. 2 G.O. Bonds, Ser. A, | |||
| 5.00%, 12/1/49 | B+/P | 1,000,000 | 1,084,969 |
| Sterling Ranch Cmnty. Auth. Board Rev. Bonds, | |||
| (Metro. Dist. No. 2), Ser. A, 4.25%, 12/1/50 | BB/P | 450,000 | 500,586 |
| Willow Bend Metro. Dist. G.O. Bonds, Ser. A, | |||
| 5.00%, 12/1/39 | BB–/P | 600,000 | 649,980 |
| 12,303,796 | |||
| Connecticut (0.4%) | |||
| Harbor Point Infrastructure Impt. Dist. 144A Tax | |||
| Alloc. Bonds, (Harbor Point Ltd.), 5.00%, 4/1/39 | BB/P | 1,500,000 | 1,726,095 |
| 1,726,095 | |||
| Delaware (0.9%) | |||
| DE State Econ. Dev. Auth. Rev. Bonds | |||
| (ASPIRA of Delaware Charter Operations, Inc.), | |||
| Ser. A, 5.00%, 6/1/51 | BB | 1,035,000 | 1,112,068 |
| (ASPIRA Charter School), Ser. A, 5.00%, 6/1/36 | BB | 705,000 | 771,251 |
| Millsboro Special Oblig. 144A Special Tax, | |||
| (Plantation Lakes), 5.25%, 7/1/48 | BB–/P | 1,000,000 | 1,103,258 |
| Millsboro Special Oblig. 144A Tax Alloc. Bonds, | |||
| (Plantation Lakes Special Dev. Dist.), 5.125%, 7/1/38 | BB–/P | 490,000 | 545,258 |
| 3,531,835 | |||
| District of Columbia (2.5%) | |||
| DC Rev. Bonds | |||
| (Intl. School), 5.00%, 7/1/54 | BBB | 1,275,000 | 1,468,969 |
| (Ingleside at Rock Creek), Ser. A, 5.00%, 7/1/52 | BB–/P | 1,000,000 | 1,042,795 |
| (Latin American Montessori Bilingual Pub. Charter | |||
| School Oblig. Group), 5.00%, 6/1/40 | BB+ | 1,500,000 | 1,770,714 |
| (KIPP DC), 4.00%, 7/1/44 | BBB+ | 750,000 | 837,075 |
| DC 144A Rev. Bonds, (Rocketship DC Oblig. | |||
| Group), Ser. 21-A | |||
| 5.00%, 6/1/61 | BB/P | 400,000 | 453,290 |
| 5.00%, 6/1/51 | BB/P | 375,000 | 427,845 |
| DC Tobacco Settlement Fin. Corp. Rev. Bonds, | |||
| Ser. A, zero %, 6/15/46 | CCC/P | 7,500,000 | 1,598,957 |
| Metro. Washington DC, Arpt. Auth. Dulles Toll | |||
| Rd. Rev. Bonds | |||
| (Dulles Metrorail & Cap. Impt. Proj.), | |||
| 4.00%, 10/1/53 T | A– | 1,065,000 | 1,221,273 |
| (Dulles Metrorail & Cap. Impt. Proj.), Ser. B, | |||
| 4.00%, 10/1/44 T | A– | 1,060,000 | 1,226,072 |
| 10,046,990 | |||
| Florida (6.5%) | |||
| Cap. Trust Agcy. Rev. Bonds, (Wonderful Foundation | |||
| Charter School Holdings, LLC), zero %, 1/1/60 | B/P | 6,000,000 | 566,285 |
| Cap. Trust Agcy. 144A Rev. Bonds, (Wonderful | |||
| Foundation Charter School Holdings, LLC) | |||
| 5.00%, 1/1/55 | BB–/P | 1,700,000 | 1,897,694 |
| 4.50%, 1/1/35 | BB–/P | 750,000 | 826,842 |
| Managed Municipal Income Trust 21 |
| MUNICIPAL BONDS AND NOTES (127.6%)* cont. | Rating** | Principal amount | Value |
| Florida cont. | |||
| Celebration Pointe Cmnty. Dev. Dist. No. 1 144A | |||
| Special Assessment Bonds, (Alachua Cnty.), | |||
| 5.00%, 5/1/48 | B/P | $240,000 | $257,781 |
| Double Branch Cmnty. Dev. Dist. Special Assmt. | |||
| Bonds, (Sr. Lien), Ser. A-1, 4.125%, 5/1/31 | A | 500,000 | 527,720 |
| Fishhawk, CCD IV Special Assmt. Bonds, | |||
| 7.25%, 5/1/43 | B/P | 380,000 | 417,037 |
| FL State Higher Edl. Fac. Financial Auth. Rev. Bonds, | |||
| (St. Leo U., Inc. Oblig. Group), 5.00%, 3/1/49 | BBB– | 365,000 | 414,133 |
| Halifax Hosp. Med. Ctr. Rev. Bonds, 5.00%, 6/1/36 | A– | 1,300,000 | 1,520,743 |
| Lake Cnty., Retirement Fac. Rev. Bonds, | |||
| (Waterman Cmnty., Inc.), 5.75%, 8/15/55 | B/P | 750,000 | 802,215 |
| Lakewood Ranch, Stewardship Dist. Special | |||
| Assessment Bonds, (Village of Lakewood Ranch | |||
| South), 5.125%, 5/1/46 | B+/P | 885,000 | 968,050 |
| Lakewood Ranch, Stewardship Dist. Special Assmt., | |||
| (Azario), 4.00%, 5/1/40 | B+/P | 1,000,000 | 1,074,953 |
| Lakewood Ranch, Stewardship Dist. Special Assmt. | |||
| Bonds, 4.875%, 5/1/35 | BB–/P | 460,000 | 494,323 |
| Lakewood Ranch, Stewardship Dist. 144A Special | |||
| Assmt., 4.00%, 5/1/50 | B/P | 250,000 | 261,337 |
| Miami Beach, Hlth. Fac. Auth. Hosp. Rev. | |||
| Bonds, (Mount Sinai Med. Ctr.), 5.00%, 11/15/29 | |||
| (Prerefunded 11/15/22) | Baa1 | 1,000,000 | 1,074,119 |
| Miami-Dade Cnty., Indl. Dev. Auth. Rev. Bonds, | |||
| (Pinecrest Academy, Inc.), 5.00%, 9/15/34 | BBB | 1,240,000 | 1,348,593 |
| Midtown Miami Cmnty. Dev. Dist. Special Assmt. | |||
| Bonds, (Garage), Ser. A, 5.00%, 5/1/29 | BB–/P | 570,000 | 597,597 |
| Palm Beach Cnty., Rev. Bonds, (Lynn U. Hsg.), Ser. A, | |||
| 5.00%, 6/1/57 | B+/P | 375,000 | 379,423 |
| Palm Beach Cnty., 144A Rev. Bonds, (PBAU Hsg.), | |||
| Ser. A, 5.00%, 4/1/39 | Ba1 | 500,000 | 559,096 |
| Pinellas Cnty., Indl. Dev. Auth. Rev. Bonds, (2017 | |||
| Foundation for Global Understanding, Inc.), | |||
| 5.00%, 7/1/39 | AAA/P | 1,690,000 | 2,006,869 |
| Sarasota Cnty., Hlth. Fac. Auth. Rev. Bonds, | |||
| (Village on the Isle), Ser. A, 5.00%, 1/1/37 | BB+/F | 1,000,000 | 1,083,538 |
| Sarasota Cnty., Pub. Hosp. Dist. Rev. Bonds, | |||
| (Sarasota Memorial Hosp.), 4.00%, 7/1/48 | A1 | 1,500,000 | 1,670,425 |
| Southeast Overtown Park West Cmnty. Redev. Agcy. | |||
| 144A Tax Alloc. Bonds, Ser. A-1, 5.00%, 3/1/30 | BBB+ | 480,000 | 529,960 |
| Tallahassee, Hlth. Fac. Rev. Bonds, (Tallahassee | |||
| Memorial HealthCare, Inc.), Ser. A, 5.00%, 12/1/55 | Baa1 | 1,000,000 | 1,119,511 |
| Verandah, West Cmnty. Dev. Dist. Special Assmt. | |||
| Bonds, (Cap. Impt.), 5.00%, 5/1/33 | B+/P | 495,000 | 513,903 |
| Village Cmnty. Dev. Dist. No. 10 Special Assmt. | |||
| Bonds, 5.75%, 5/1/31 | BB/P | 815,000 | 883,050 |
| Village Cmnty. Dev. Dist. No. 11 Special Assmt. | |||
| Bonds, 4.50%, 5/1/45 | BB–/P | 945,000 | 980,936 |
| Village Cmnty. Dev. Dist. No. 12 144A Special | |||
| Assessment Bonds, 4.00%, 5/1/33 | BB–/P | 710,000 | 797,294 |
| 22 Managed Municipal Income Trust |
| MUNICIPAL BONDS AND NOTES (127.6%)* cont. | Rating** | Principal amount | Value |
| Florida cont. | |||
| Village Cmnty. Dev. Dist. No. 9 Special Assmt. Bonds, | |||
| 5.00%, 5/1/22 | BBB–/P | $70,000 | $71,926 |
| Village, 144A Special Assmt., (Village Cmnty. Dev. | |||
| Dist. No. 13), 3.25%, 5/1/40 | BB–/P | 2,500,000 | 2,608,154 |
| 26,253,507 | |||
| Georgia (3.9%) | |||
| Cobb Cnty., Dev. Auth. Student Hsg. Rev. Bonds | |||
| (Kennesaw State U. Real Estate Oblig. Group), | |||
| Ser. C, 5.00%, 7/15/38 | Baa2 | 765,000 | 842,331 |
| (Kennesaw State U. Real Estate), 5.00%, 7/15/30 | Baa2 | 700,000 | 782,922 |
| GA State Private College & U. Auth. Rev. Bonds, | |||
| (Mercer U.), Ser. C, 5.25%, 10/1/30 | Baa1 | 750,000 | 785,310 |
| Gainesville & Hall Cnty., Dev. Auth. Edl. Fac. Rev. | |||
| Bonds, (Riverside Military Academy), 5.00%, 3/1/37 | BB/F | 1,450,000 | 1,456,442 |
| Geo L Smith II GA Congress Ctr. 144A Rev. Bonds, | |||
| (Signia Hotel Mgt., LLC.) | |||
| 5.00%, 1/1/54 | BB–/P | 1,480,000 | 1,684,259 |
| 5.00%, 1/1/36 | BB–/P | 850,000 | 994,405 |
| Main Street Natural Gas, Inc. Gas Supply Rev. Bonds, | |||
| Ser. A, 5.00%, 5/15/34 | A3 | 3,345,000 | 4,113,604 |
| Muni. Election Auth. of GA Rev. Bonds, (Plant Vogtle | |||
| Units 3 & 4), Ser. A | |||
| 5.50%, 7/1/60 | A | 2,000,000 | 2,305,484 |
| 4.00%, 1/1/59 | A2 | 2,000,000 | 2,221,648 |
| 4.00%, 1/1/49 | A2 | 500,000 | 560,719 |
| 15,747,124 | |||
| Guam (0.1%) | |||
| Territory of GU, Pwr. Auth. Rev. Bonds, Ser. A, | |||
| 5.00%, 10/1/34 | Baa2 | 200,000 | 207,916 |
| 207,916 | |||
| Hawaii (0.1%) | |||
| HI State Dept. Budget & Fin. Rev. Bonds, | |||
| (Kahala Nui), 5.125%, 11/15/32 | A/F | 400,000 | 422,973 |
| 422,973 | |||
| Idaho (0.6%) | |||
| ID State Hlth. Fac. Auth. Rev. Bonds, (St. Luke’s Hlth. | |||
| Sys. Oblig. Group), Ser. A, 4.00%, 3/1/38 | A3 | 2,000,000 | 2,250,822 |
| 2,250,822 | |||
| Illinois (16.7%) | |||
| Chicago, G.O. Bonds, Ser. A | |||
| 6.00%, 1/1/38 | BBB+ | 2,560,000 | 3,106,705 |
| 5.50%, 1/1/49 | BBB+ | 1,000,000 | 1,206,497 |
| 5.00%, 1/1/40 | BBB+ | 2,000,000 | 2,377,932 |
| 5.00%, 1/1/30 | BBB+ | 1,800,000 | 2,257,583 |
| Chicago, Special Assmt. Bonds, (Lake Shore East), | |||
| 6.75%, 12/1/32 | BB/P | 1,547,000 | 1,550,406 |
| Chicago, Board of Ed. G.O. Bonds | |||
| Ser. C, 5.25%, 12/1/39 | BB | 1,500,000 | 1,658,159 |
| Ser. H, 5.00%, 12/1/36 | BB | 2,100,000 | 2,476,245 |
| Chicago, Motor Fuel Tax Rev. Bonds, 5.00%, 1/1/29 | Ba1 | 500,000 | 525,895 |
| Managed Municipal Income Trust 23 |
| MUNICIPAL BONDS AND NOTES (127.6%)* cont. | Rating** | Principal amount | Value |
| Illinois cont. | |||
| Chicago, O’Hare Intl. Arpt. Rev. Bonds, Ser. A, | |||
| 5.00%, 1/1/38 | A | $700,000 | $858,174 |
| Chicago, Waste Wtr. Transmission Rev. Bonds, | |||
| (2nd Lien), 5.00%, 1/1/39 | A | 1,360,000 | 1,510,274 |
| Chicago, Wtr. Wks Rev. Bonds, 5.00%, 11/1/30 | A | 1,000,000 | 1,210,111 |
| Cook Cnty., G.O. Bonds, 5.00%, 11/15/35 | A+ | 500,000 | 607,385 |
| Du Page Cnty., Special Svc. Area No. 31 Special Tax | |||
| Bonds, (Monarch Landing), 5.625%, 3/1/36 | B/P | 292,000 | 293,338 |
| IL State G.O. Bonds | |||
| 5.25%, 2/1/30 | Baa3 | 1,000,000 | 1,104,652 |
| 5.00%, 11/1/41 | Baa3 | 1,250,000 | 1,430,412 |
| 5.00%, 1/1/41 | Baa3 | 700,000 | 787,463 |
| 5.00%, 2/1/39 | Baa3 | 200,000 | 217,586 |
| Ser. A, 5.00%, 5/1/38 | Baa3 | 1,000,000 | 1,186,749 |
| 5.00%, 1/1/35 | Baa3 | 500,000 | 569,478 |
| 5.00%, 1/1/33 | Baa3 | 500,000 | 571,194 |
| Ser. B, 5.00%, 10/1/31 | Baa3 | 2,000,000 | 2,433,564 |
| Ser. C, 5.00%, 11/1/29 | Baa3 | 2,700,000 | 3,217,995 |
| 5.00%, 2/1/29 | Baa3 | 2,075,000 | 2,467,380 |
| 5.00%, 1/1/29 | Baa3 | 1,095,000 | 1,270,005 |
| Ser. A, 5.00%, 12/1/28 | Baa3 | 1,760,000 | 2,140,608 |
| Ser. D, 5.00%, 11/1/28 | Baa3 | 1,730,000 | 2,079,485 |
| Ser. D, 5.00%, 11/1/27 | Baa3 | 770,000 | 933,986 |
| Ser. A, 4.00%, 3/1/41 | Baa3 | 1,300,000 | 1,484,870 |
| IL State Fin. Auth. Rev. Bonds | |||
| (Plymouth Place), 5.25%, 5/15/50 | |||
| (Prerefunded 5/15/25) | BB+/F | 1,000,000 | 1,187,976 |
| (Plymouth Place Oblig. Group), 5.00%, 5/15/56 | BB+/F | 815,000 | 935,763 |
| (Plymouth Place Oblig. Group), 5.00%, 5/15/51 | BB+/F | 1,000,000 | 1,155,103 |
| (Plymouth Place Oblig. Group), 5.00%, 5/15/41 | BB+/F | 400,000 | 470,188 |
| (Southern IL Healthcare Enterprises, Inc.), | |||
| 5.00%, 3/1/33 | A+ | 700,000 | 838,902 |
| (Presbyterian Homes Oblig. Group), 4.00%, 5/1/50 | A–/F | 1,500,000 | 1,668,717 |
| (Riverside Hlth. Syst.), 4.00%, 11/15/35 | A+ | 500,000 | 562,180 |
| IL State Fin. Auth. Student Hsg. & Academic | |||
| Fac. Rev. Bonds | |||
| (U. of IL Chicago), 5.00%, 2/15/50 | Baa3 | 500,000 | 554,719 |
| (U. of IL-CHF-Chicago, LLC), Ser. A, 5.00%, 2/15/37 | Baa3 | 1,200,000 | 1,343,144 |
| Metro. Pier & Exposition Auth. Rev. Bonds, | |||
| (McCormick Place Expansion) | |||
| Ser. A, 5.00%, 6/15/50 | BBB | 3,000,000 | 3,608,878 |
| Ser. B, stepped-coupon zero % (4.950%, 6/15/31), | |||
| 12/15/47 †† | BBB | 1,500,000 | 1,242,386 |
| Metro. Wtr. Reclamation Dist. of Greater Chicago | |||
| G.O. Bonds, Ser. A, 5.00%, 12/1/31 | AA | 1,000,000 | 1,232,512 |
| Northern IL U. Rev. Bonds, Ser. B, BAM | |||
| 5.00%, 4/1/33 | AA | 625,000 | 791,836 |
| 5.00%, 4/1/31 | AA | 500,000 | 638,199 |
| 4.00%, 4/1/40 | AA | 610,000 | 705,597 |
| 4.00%, 4/1/39 | AA | 500,000 | 579,071 |
| 24 Managed Municipal Income Trust |
| MUNICIPAL BONDS AND NOTES (127.6%)* cont. | Rating** | Principal amount | Value |
| Illinois cont. | |||
| Sales Tax Securitization Corp. Rev. Bonds | |||
| Ser. C, 5.50%, 1/1/36 | AA– | $2,000,000 | $2,534,676 |
| Ser. A, 5.00%, 1/1/36 | AA– | 1,600,000 | 2,006,730 |
| Ser. A, 4.00%, 1/1/39 | AA– | 1,750,000 | 2,028,472 |
| Ser. A, 4.00%, 1/1/38 | AA– | 1,750,000 | 2,033,787 |
| 67,652,967 | |||
| Indiana (0.1%) | |||
| IN State Fin. Auth. Edl. Fac. Rev. Bonds, (Butler U.), | |||
| Ser. B, 5.00%, 2/1/29 | A– | 500,000 | 516,065 |
| 516,065 | |||
| Iowa (0.3%) | |||
| IA Tobacco Settlement Auth. Rev. Bonds, Ser. B-1, | |||
| Class 2, 4.00%, 6/1/49 | BBB | 1,000,000 | 1,148,210 |
| 1,148,210 | |||
| Kansas (0.2%) | |||
| Wichita, Hlth. Care Fac. Rev. Bonds, (Presbyterian | |||
| Manors), Ser. I, 5.00%, 5/15/33 | BB–/P | 500,000 | 526,614 |
| Wyandotte, Cnty./Kansas City, Unified Govt. 144A | |||
| Rev. Bonds, (Legends Apt. Garage & West Lawn), | |||
| 4.50%, 6/1/40 | BB+/P | 440,000 | 458,250 |
| 984,864 | |||
| Kentucky (2.9%) | |||
| KY Econ. Dev. Fin. Auth. Rev. Bonds, (Masonic Home | |||
| Indpt. Living), 5.00%, 5/15/46 | BB/P | 1,000,000 | 1,011,946 |
| KY Pub. Trans. Infrastructure Auth. Rev. Bonds, | |||
| (1st Tier Downtown Crossing), Ser. A, 6.00%, 7/1/53 | Baa2 | 1,100,000 | 1,218,630 |
| KY State Econ. Dev. Fin. Auth. Rev. Bonds, | |||
| (Owensboro Hlth.), Ser. A, 5.25%, 6/1/41 | Baa3 | 125,000 | 142,482 |
| KY State Econ. Dev. Fin. Auth. Hlth. Care Rev. Bonds, | |||
| (Masonic Homes of KY), 5.375%, 11/15/42 | BB–/P | 900,000 | 906,741 |
| KY State Pub. Energy Auth. Gas Supply Mandatory | |||
| Put Bonds (6/1/25), Ser. C-1, 4.00%, 12/1/49 | A1 | 4,635,000 | 5,226,370 |
| Louisville & Jefferson Cnty., Metro. Govt. Hlth. Syst. | |||
| Rev. Bonds, (Norton Healthcare Oblig. Group), | |||
| 5.50%, 10/1/33 | A | 3,000,000 | 3,344,004 |
| 11,850,173 | |||
| Louisiana (1.7%) | |||
| LA State Pub. Fac. Auth. Rev. Bonds, (LA State U. | |||
| Greenhouse Phase III), Ser. A, 5.00%, 7/1/59 | A3 | 1,500,000 | 1,813,297 |
| LA State Pub. Fac. Solid Waste Disp. Auth. Rev. | |||
| Bonds, (LA Pellets, Inc.), Ser. A, 8.375%, 7/1/39 | |||
| (In default) † | D/P | 500,000 | 5 |
| Pub. Fac. Auth. Rev. Bonds, (Tulane U.), Ser. A, | |||
| 4.00%, 12/15/50 | A2 | 750,000 | 840,661 |
| St. John The Baptist Parish Mandatory Put Bonds | |||
| (7/1/26), (Marathon Oil Corp.), Ser. A-3, 2.20%, 6/1/37 | Baa3 | 3,500,000 | 3,635,297 |
| St. Tammany, Public Trust Fin. Auth. Rev. Bonds, | |||
| (Christwood), 5.25%, 11/15/37 | BB/P | 385,000 | 414,346 |
| 6,703,606 |
| Managed Municipal Income Trust 25 |
| MUNICIPAL BONDS AND NOTES (127.6%)* cont. | Rating** | Principal amount | Value |
| Maine (0.6%) | |||
| ME Hlth. & Higher Edl. Fac. Auth. Rev. Bonds | |||
| (ME Gen. Med. Ctr.), 7.50%, 7/1/32 | |||
| (Prerefunded 7/1/21) | AAA/P | $1,000,000 | $1,011,694 |
| (MaineGeneral Health Oblig. Group), 6.95%, 7/1/41 | |||
| (Prerefunded 7/1/21) | AAA/P | 1,000,000 | 1,010,824 |
| ME State Fin. Auth. Solid Waste Disp. 144A | |||
| Mandatory Put Bonds (8/1/25), (Casella Waste Syst.), | |||
| 5.125%, 8/1/35 | B2 | 500,000 | 566,274 |
| 2,588,792 | |||
| Maryland (2.0%) | |||
| Brunswick, Special Tax, 5.00%, 7/1/36 | B+/P | 550,000 | 656,267 |
| Frederick Cnty., Special Tax Bonds, (Oakdale-Lake | |||
| Linganore), 3.75%, 7/1/39 | BB/P | 1,410,000 | 1,478,689 |
| Frederick Cnty., Edl. Fac. 144A Rev. Bonds, | |||
| (Mount St. Mary’s U.), Ser. A, 5.00%, 9/1/37 | BB+ | 500,000 | 556,897 |
| MD Econ. Dev. Corp. Student Hsg. Rev. Bonds, | |||
| (Bowie State U.) | |||
| 4.00%, 7/1/50 | BBB– | 200,000 | 220,599 |
| 4.00%, 7/1/40 | BBB– | 450,000 | 504,854 |
| MD State Econ. Dev. Corp. Tax Alloc. Bonds, | |||
| (Port Covington) | |||
| 4.00%, 9/1/50 | B+/P | 750,000 | 827,277 |
| 4.00%, 9/1/40 | B+/P | 755,000 | 849,328 |
| Prince Georges Cnty., Special Oblig. 144A Tax Alloc. | |||
| Bonds, (Westphalia Town Ctr.), 5.125%, 7/1/39 | B/P | 1,000,000 | 1,110,083 |
| Westminster, Rev. Bonds | |||
| (Lutheran Village at Miller’s Grant, Inc. (The)), | |||
| Ser. A, 6.00%, 7/1/34 | B–/P | 250,000 | 271,248 |
| (Carroll Lutheran Village, Inc.), 5.125%, 7/1/34 | BB/P | 1,500,000 | 1,570,841 |
| 8,046,083 | |||
| Massachusetts (1.4%) | |||
| Lowell, Collegiate Charter School Rev. Bonds | |||
| 5.00%, 6/15/54 | BB–/P | 1,250,000 | 1,361,479 |
| 5.00%, 6/15/39 | BB–/P | 1,000,000 | 1,104,115 |
| MA State Dev. Fin. Agcy. Rev. Bonds | |||
| (Loomis Communities), Ser. A, 6.00%, 1/1/33 | BBB/P | 100,000 | 107,327 |
| (Loomis Communities), Ser. A, U.S. Govt. Coll., | |||
| 6.00%, 1/1/33 (Prerefunded 1/1/23) | AAA/P | 100,000 | 112,346 |
| (Linden Ponds, Inc.), Ser. B, zero %, 11/15/56 | B–/P | 315,229 | 58,115 |
| MA State Dev. Fin. Agcy. 144A Rev. Bonds, | |||
| (Linden Ponds, Inc. Fac.) | |||
| 5.125%, 11/15/46 | BB/F | 1,000,000 | 1,098,051 |
| 5.00%, 11/15/38 | BB/F | 500,000 | 551,336 |
| MA State Dev. Fin. Agcy. Hlth. Care Fac. 144A Rev. | |||
| Bonds, (Adventcare), Ser. A, 6.65%, 10/15/28 | |||
| (In default) † | D/P | 995,000 | 447,750 |
| MA State Port Auth. Special Fac. Rev. Bonds, | |||
| (Conrac), Ser. A, 5.125%, 7/1/41 (Prerefunded 7/1/21) | BBB+ | 750,000 | 755,867 |
| 5,596,386 |
| 26 Managed Municipal Income Trust |
| MUNICIPAL BONDS AND NOTES (127.6%)* cont. | Rating** | Principal amount | Value |
| Michigan (8.8%) | |||
| Detroit, G.O. Bonds, 5.00%, 4/1/37 | Ba3 | $750,000 | $876,699 |
| Flint, Hosp. Bldg. Auth. Rev. Bonds, Ser. A, | |||
| 5.25%, 7/1/39 | Ba1 | 750,000 | 794,255 |
| Great Lakes, Wtr. Auth. Swr. Rev. Bonds, | |||
| (Brazos Presbyterian Homes, Inc.), Ser. C, | |||
| 5.00%, 7/1/36 | A+ | 2,000,000 | 2,407,521 |
| Kentwood, Economic Dev. Rev. Bonds, | |||
| (Holland Home), 5.625%, 11/15/32 | BBB–/F | 2,195,000 | 2,272,999 |
| Kentwood, Economic Dev. Corp. Rev. Bonds, | |||
| (Holland Home Obligated Group) | |||
| 5.00%, 11/15/41 | BBB–/F | 1,000,000 | 1,126,111 |
| 5.00%, 11/15/32 | BBB–/F | 1,250,000 | 1,438,219 |
| MI State Fin. Auth. Rev. Bonds | |||
| (Local Govt. Loan Program — Detroit Wtr. & Swr. | |||
| Dept. (DWSD)), Ser. D-2, 5.00%, 7/1/34 | A+ | 400,000 | 468,753 |
| (Detroit Wtr. & Swr.), Ser. C-6, 5.00%, 7/1/33 | AA– | 600,000 | 682,693 |
| (Tobacco Settlement), Ser. B-2, Class 2, | |||
| zero %, 6/1/65 | BBB/P | 6,750,000 | 869,456 |
| MI State Fin. Auth. Ltd. Oblig. Rev. Bonds, | |||
| (Lawrence Technological U.), 5.00%, 2/1/47 | BB+ | 2,150,000 | 2,272,752 |
| MI State Hosp. Fin. Auth. Rev. Bonds | |||
| (Trinity Health Corp. Oblig. Group), | |||
| 4.00%, 12/1/49 T | Aa3 | 2,125,000 | 2,453,971 |
| (Trinity Health Corp. Oblig. Group), Ser. A, U.S. | |||
| Govt. Coll, 5.00%, 12/1/47 (Prerefunded 12/1/22) T | Aa3 | 8,500,000 | 9,155,254 |
| MI State Strategic Fund Ltd. Rev. Bonds, | |||
| (Worthington Armstrong Venture), 5.75%, 10/1/22 | |||
| (Escrowed to maturity) | AAA/P | 1,350,000 | 1,451,324 |
| MI State Strategic Fund Ltd. Oblig. Rev. Bonds, | |||
| (Holland Home Oblig. Group), 5.00%, 11/15/43 | BBB–/F | 500,000 | 561,138 |
| Pontiac City, G.O. Bonds, (Pontiac School | |||
| Dist.), Q-SBLF | |||
| 4.00%, 5/1/45 T | Aa1 | 3,576,471 | 4,217,566 |
| 4.00%, 5/1/50 T | Aa1 | 4,023,529 | 4,733,411 |
| 35,782,122 | |||
| Minnesota (1.3%) | |||
| Baytown Twp., Lease Rev. Bonds, Ser. A, | |||
| 4.00%, 8/1/41 | BB+ | 380,000 | 400,745 |
| Ham Lake, Charter School Lease Rev. Bonds, | |||
| (DaVinci Academy of Arts & Science), Ser. A, | |||
| 5.00%, 7/1/47 | BB–/P | 500,000 | 539,002 |
| MN State Higher Ed. Fac. Auth. Rev. Bonds, | |||
| (Augsburg U.), Ser. A, 5.00%, 5/1/46 | Ba1 | 1,250,000 | 1,300,301 |
| Sartell, Hlth. Care & Hsg. Facs. Rev. Bonds, | |||
| (Country Manor Campus, LLC) | |||
| 5.25%, 9/1/30 | B–/P | 500,000 | 508,153 |
| 5.25%, 9/1/27 | B–/P | 750,000 | 765,638 |
| Managed Municipal Income Trust 27 |
| MUNICIPAL BONDS AND NOTES (127.6%)* cont. | Rating** | Principal amount | Value |
| Minnesota cont. | |||
| St. Paul, Hsg. & Redev. Auth. Charter School Lease | |||
| Rev. Bonds, (Nova Classical Academy), Ser. A | |||
| U.S. Govt. Coll., 6.625%, 9/1/42 | |||
| (Prerefunded 9/1/21) | BB+ | $250,000 | $255,291 |
| 6.375%, 9/1/31 | BB+ | 250,000 | 253,945 |
| St. Paul, Port Auth. Lease Rev. Bonds, | |||
| (Regions Hosp. Pkg. Ramp), Ser. 1, 5.00%, 8/1/36 | A–/P | 1,125,000 | 1,126,157 |
| 5,149,232 | |||
| Mississippi (1.4%) | |||
| MS State Bus. Fin. Corp. Rev. Bonds, (System Energy | |||
| Resources, Inc.), 2.50%, 4/1/22 | BBB+ | 5,600,000 | 5,631,460 |
| 5,631,460 | |||
| Missouri (1.1%) | |||
| Saint Louis, Indl. Dev. Auth. Fin. Rev. Bonds, | |||
| (Ballpark Village Dev.), Ser. A, 4.75%, 11/15/47 | BB–/P | 875,000 | 891,382 |
| St. Louis Cnty., Indl. Dev. Auth. Sr. Living Fac. Rev. | |||
| Bonds, (Friendship Village), 5.25%, 9/1/53 | BB+/F | 3,250,000 | 3,644,298 |
| 4,535,680 | |||
| Nebraska (1.2%) | |||
| Central Plains, Energy Mandatory Put Bonds | |||
| (1/1/24), (No. 4), 5.00%, 3/1/50 | A2 | 4,500,000 | 5,009,426 |
| 5,009,426 | |||
| Nevada (2.0%) | |||
| Clark Cnty., G.O. Bonds, AMBAC, 3.00%, 11/1/35 | Aa1 | 4,000,000 | 4,004,174 |
| Clark Cnty., Impt. Dist. Special Assmt. Bonds, | |||
| (Mountains Edge Local No. 142), 5.00%, 8/1/21 | A | 370,000 | 373,666 |
| Clark Cnty., Impt. Dist. No. 159 Special Assessment | |||
| Bonds, (Summerlin Village 16A), 5.00%, 8/1/32 | B+/P | 445,000 | 485,373 |
| Las Vegas, Special Assmt. Bonds | |||
| (Dist. No. 815), 5.00%, 12/1/49 | B+/P | 625,000 | 706,007 |
| 5.00%, 6/1/31 | B+/P | 370,000 | 401,324 |
| 5.00%, 6/1/30 | B+/P | 245,000 | 266,199 |
| (Dist. No. 607 Local Impt.), 5.00%, 6/1/23 | BBB–/P | 285,000 | 305,847 |
| Las Vegas, Impt. Dist. No. 812 Special Assessment | |||
| Bonds, (Summerlin Village 24), 5.00%, 12/1/35 | B/P | 240,000 | 263,494 |
| Las Vegas, Special Impt. Dist. No. 814 Special | |||
| Assmt., (Summerlin Village No. 21 and 24A) | |||
| 4.00%, 6/1/44 | BB–/P | 650,000 | 696,248 |
| 4.00%, 6/1/39 | BB–/P | 450,000 | 487,832 |
| 7,990,164 | |||
| New Hampshire (2.1%) | |||
| National Fin. Auth. 144A Rev. Bonds, | |||
| (Covanta Holding Corp.), Ser. C, 4.875%, 11/1/42 | B1 | 1,275,000 | 1,337,650 |
| NH State Hlth. & Ed. Fac. Auth. Rev. Bonds | |||
| (Rivermead), Ser. A, 6.875%, 7/1/41 | |||
| (Prerefunded 7/1/21) | BB+/P | 2,000,000 | 2,021,083 |
| (Rivermead), Ser. A, 6.625%, 7/1/31 | |||
| (Prerefunded 7/1/21) | BB+/P | 1,320,000 | 1,333,393 |
| (Catholic Med. Ctr.), 5.00%, 7/1/44 | BBB+ | 1,000,000 | 1,164,624 |
| (Kendel at Hanover), 5.00%, 10/1/40 | BBB+/F | 585,000 | 666,479 |
| 28 Managed Municipal Income Trust |
| MUNICIPAL BONDS AND NOTES (127.6%)* cont. | Rating** | Principal amount | Value |
| New Hampshire cont. | |||
| NH State Hlth. & Ed. Fac. Auth. Rev. Bonds | |||
| (Elliot Hosp.), 5.00%, 10/1/38 | A3 | $250,000 | $294,133 |
| (Southern NH Med. Ctr.), 5.00%, 10/1/37 | A– | 1,000,000 | 1,144,991 |
| NH State Hlth. & Ed. Fac. Auth. 144A Rev. Bonds, | |||
| (Hillside Village), Ser. A, 6.25%, 7/1/42 (In default) † | D/P | 750,000 | 562,500 |
| 8,524,853 | |||
| New Jersey (7.0%) | |||
| Atlantic City, G.O. Bonds, (Tax Appeal), Ser. B, AGM, | |||
| 4.00%, 3/1/42 | AA | 1,250,000 | 1,393,149 |
| NJ State Econ. Dev. Auth. Rev. Bonds | |||
| (Ashland School, Inc.), 6.00%, 10/1/33 | BBB | 980,000 | 1,080,388 |
| (NYNJ Link Borrower, LLC), 5.375%, 1/1/43 | BBB | 1,000,000 | 1,120,086 |
| Ser. EEE, 5.00%, 6/15/48 | Baa1 | 3,000,000 | 3,625,368 |
| (North Star Academy Charter School of Newark, | |||
| Inc.), 5.00%, 7/15/47 | BBB– | 1,000,000 | 1,148,891 |
| Ser. AAA, 5.00%, 6/15/36 | Baa1 | 350,000 | 413,682 |
| Ser. B, 5.00%, 11/1/26 | Baa1 | 3,000,000 | 3,667,674 |
| 5.00%, 6/15/26 | Baa2 | 500,000 | 519,998 |
| (NJ Transit Trans.), Ser. A, 4.00%, 11/1/39 | Baa1 | 2,000,000 | 2,287,721 |
| NJ State Econ. Dev. Auth. Fac. Rev. Bonds, | |||
| (Continental Airlines, Inc.), 5.625%, 11/15/30 | Ba3 | 1,500,000 | 1,683,530 |
| NJ State Econ. Dev. Auth. Special Fac. Rev. Bonds, | |||
| (Port Newark Container Term., LLC), 5.00%, 10/1/37 | Baa3 | 1,500,000 | 1,756,576 |
| NJ State Hlth. Care Fac. Fin. Auth. Rev. Bonds, | |||
| (St. Peter’s U. Hosp.), 6.25%, 7/1/35 | Ba1 | 2,000,000 | 2,012,719 |
| NJ State Trans. Trust Fund Auth. Rev. Bonds | |||
| Ser. AA, 5.00%, 6/15/38 | Baa1 | 1,800,000 | 2,211,432 |
| Ser. AA, 5.00%, 6/15/37 ### | BBB | 400,000 | 490,454 |
| Ser. AA, 5.00%, 6/15/36 ### | BBB | 475,000 | 583,464 |
| Ser. A, 5.00%, 12/15/34 | Baa1 | 2,600,000 | 3,232,012 |
| Ser. AA, 4.00%, 6/15/45 | Baa1 | 1,000,000 | 1,141,072 |
| North Hudson, Swr. Auth. Rev. Bonds, Ser. A, 5.00%, | |||
| 6/1/42 (Prerefunded 6/1/22) | AAA/P | 55,000 | 57,895 |
| 28,426,111 | |||
| New Mexico (1.1%) | |||
| NM State Hosp. Equip. Loan Council Hosp. Rev. | |||
| Bonds, Ser. A, 4.00%, 8/1/48 | AA | 3,400,000 | 3,883,035 |
| Sante Fe, Retirement Fac. Rev. Bonds, (El Castillo | |||
| Retirement Residences), Ser. A, 5.00%, 5/15/39 | BB+/F | 500,000 | 558,779 |
| 4,441,814 | |||
| New York (8.0%) | |||
| Glen Cove, Local Econ. Assistance Corp. Rev. Bonds, | |||
| (Garvies Point Pub. Impt.), Ser. C, stepped-coupon | |||
| zero % (5.625%, 1/1/24), 1/1/55 †† | B/P | 300,000 | 310,704 |
| Metro. Trans. Auth. Rev. Bonds, Ser. C-1, | |||
| 4.00%, 11/15/35 | A3 | 3,000,000 | 3,421,835 |
| NY City, Transitional Fin. Auth. Rev. Bonds, Ser. C-1, | |||
| 4.00%, 5/1/39 | AAA | 2,000,000 | 2,382,034 |
| NY Counties, Tobacco Trust VI Rev. Bonds, | |||
| (Tobacco Settlement Pass Through), Ser. A-2B, | |||
| 5.00%, 6/1/51 | BB+/P | 1,700,000 | 1,803,780 |
| Managed Municipal Income Trust 29 |
| MUNICIPAL BONDS AND NOTES (127.6%)* cont. | Rating** | Principal amount | Value |
| New York cont. | |||
| NY State Dorm. Auth. | |||
| Rev. Bonds, Ser. D, 5.00%, 2/15/41 T | Aa2 | $5,000,000 | $6,337,947 |
| Sales Tax Rev. Bonds, Ser. A, Group C, | |||
| 5.00%, 3/15/42 T | Aa2 | 10,845,000 | 13,067,751 |
| NY State Env. Fac. Corp. Solid Waste Disp. | |||
| Mandatory Put Bonds (9/2/25), (Casella Waste | |||
| Syst. Inc.), Ser. R-1, 2.75%, 9/1/50 | B | 225,000 | 232,837 |
| NY State Liberty Dev. Corp. 144A Rev. Bonds | |||
| (World Trade Ctr.), Class 2, 5.375%, 11/15/40 | BB–/P | 750,000 | 837,224 |
| (3 World Trade Ctr., LLC), Class 1-3, | |||
| 5.00%, 11/15/44 | BB–/P | 2,350,000 | 2,572,325 |
| NY State Trans. Special Fac. Dev. Corp. Rev. Bonds, | |||
| (Delta Air Lines, Inc.), 5.00%, 10/1/40 | Baa3 | 1,250,000 | 1,569,483 |
| 32,535,920 | |||
| North Carolina (1.0%) | |||
| NC State Med. Care Comm. Retirement | |||
| Fac. Rev. Bonds | |||
| (Maryfield, Inc. Oblig. Group), 5.00%, 10/1/45 | BB/P | 500,000 | 554,408 |
| (Twin Lakes Cmnty.), Ser. A, 5.00%, 1/1/38 | BBB/F | 1,750,000 | 1,987,127 |
| (Southminister, Inc.), 5.00%, 10/1/37 | BB/P | 965,000 | 1,044,171 |
| (United Church Homes & Svcs. Oblig. Group), | |||
| Ser. A, 5.00%, 9/1/37 | BB/P | 500,000 | 529,449 |
| 4,115,155 | |||
| Ohio (2.7%) | |||
| Cleveland-Cuyahoga Cnty., Port Auth. Cultural | |||
| Fac. Rev. Bonds, (Playhouse Square Foundation), | |||
| 5.50%, 12/1/53 | BB+ | 1,500,000 | 1,623,329 |
| Lake Cnty., Hosp. Fac. Rev. Bonds, (Lake Hosp. | |||
| Syst., Inc.), Ser. C, 5.625%, 8/15/29 | Baa1 | 245,000 | 245,798 |
| OH State Air Quality Dev. Auth. Exempt Fac. 144A | |||
| Rev. Bonds, (Pratt Paper, LLC), 4.50%, 1/15/48 | BB+/P | 1,200,000 | 1,358,979 |
| OH State Higher Edl. Fac. Comm. Rev. Bonds, | |||
| (John Carroll U.), 4.00%, 10/1/45 | A3 | 3,400,000 | 3,866,151 |
| OH State Private Activity Rev. Bonds, | |||
| (Portsmouth Bypass), AGM, 5.00%, 12/31/35 | AA | 750,000 | 857,315 |
| Port of Greater Cincinnati Dev. Auth. 144A Rev. | |||
| Bonds, 4.25%, 12/1/50 | BB/P | 1,440,000 | 1,449,238 |
| Southeastern OH Port Auth. Hosp. Fac. Rev. Bonds | |||
| 5.75%, 12/1/32 | BB–/F | 900,000 | 948,115 |
| (Memorial Hlth. Syst. Oblig. Group), | |||
| 5.00%, 12/1/43 | BB–/F | 150,000 | 159,494 |
| Toledo-Lucas Cnty., Port Auth. FRB, | |||
| (CSX Transn, Inc.), 6.45%, 12/15/21 | A3 | 500,000 | 517,039 |
| 11,025,458 | |||
| Oregon (0.8%) | |||
| Multnomah Cnty., Hosp. Fac. Auth. Rev. Bonds, | |||
| (Terwilliger Plaza, Inc.), 5.00%, 12/1/29 | BBB/F | 350,000 | 366,139 |
| Portland, Rev. Bonds, Ser. C, 7.701%, 6/1/22 | Aaa | 2,115,000 | 2,208,310 |
| 30 Managed Municipal Income Trust |
| MUNICIPAL BONDS AND NOTES (127.6%)* cont. | Rating** | Principal amount | Value |
| Oregon cont. | |||
| Warm Springs, Reservation Confederated Tribes | |||
| 144A Rev. Bonds, (Pelton-Round Butte), Ser. B | |||
| 5.00%, 11/1/36 | A3 | $500,000 | $596,456 |
| 5.00%, 11/1/34 | A3 | 200,000 | 240,459 |
| 3,411,364 | |||
| Pennsylvania (3.5%) | |||
| Allegheny Cnty., Hosp. Dev. Auth. Rev. Bonds, | |||
| (Allegheny Hlth. Network Oblig. Group), Ser. A, | |||
| 5.00%, 4/1/35 | A | 1,200,000 | 1,476,047 |
| Chester Cnty., Indl. Dev. Auth. Rev. Bonds | |||
| (Collegium Charter School), Ser. A, | |||
| 5.125%, 10/15/37 | BB | 750,000 | 845,784 |
| (Renaissance Academy Charter School), | |||
| 5.00%, 10/1/34 | BBB– | 350,000 | 378,042 |
| Chester Cnty., Indl. Dev. Auth. Student Hsg. Rev. | |||
| Bonds, (West Chester U. Student Hsg., LLC), Ser. A, | |||
| 5.00%, 8/1/45 | Ba2 | 1,000,000 | 1,029,837 |
| Cumberland Cnty., Muni. Auth. Rev. Bonds, | |||
| (Asbury PA Obligated Group), 5.00%, 1/1/45 | BB+/P | 500,000 | 547,338 |
| Dallas, Area Muni. Auth. U. Rev. Bonds, | |||
| (Misericordia U.), 5.00%, 5/1/48 | Baa3 | 1,500,000 | 1,721,331 |
| Montgomery Cnty., Indl. Auth. Rev. Bonds, | |||
| (Whitemarsh Continuing Care Retirement Cmnty.), | |||
| Ser. A, 5.25%, 1/1/48 | BB–/P | 500,000 | 530,050 |
| Moon, Indl. Dev. Auth. Rev. Bonds, (Baptist Homes | |||
| Society Oblig. Group), 5.75%, 7/1/35 | B+/P | 650,000 | 695,969 |
| PA State Econ. Dev. Fin. Auth. Solid Waste Disp. | |||
| 144A Rev. Bonds, (Covanta Holding Corp.), Ser. A, | |||
| 3.25%, 8/1/39 | B1 | 2,200,000 | 2,242,748 |
| PA State Higher Edl. Fac. Auth. Rev. Bonds | |||
| (Shippensburg U.), 6.25%, 10/1/43 | |||
| (Prerefunded 10/1/21) | AAA/P | 500,000 | 512,445 |
| (Gwynedd Mercy College), Ser. KK1, | |||
| 5.375%, 5/1/42 | BBB | 785,000 | 808,221 |
| PA State Tpk. Comm. Rev. Bonds, Ser. A, | |||
| 5.00%, 12/1/44 | A3 | 1,500,000 | 1,861,462 |
| Philadelphia Auth. For Ind. Dev. 144A Rev. Bonds, | |||
| (String Theory Charter School), 5.00%, 6/15/50 | BB+ | 700,000 | 806,571 |
| West Shore Area Auth. Rev. Bonds, | |||
| (Lifeways at Messiah Village), Ser. A, 5.00%, 7/1/35 | BBB–/F | 785,000 | 854,572 |
| 14,310,417 | |||
| Puerto Rico (1.3%) | |||
| Cmnwlth. of PR, Sales Tax Fin. Corp. Rev. Bonds, | |||
| Ser. A-1, 5.00%, 7/1/58 | BB–/P | 4,700,000 | 5,306,582 |
| 5,306,582 | |||
| South Carolina (4.0%) | |||
| Berkeley Cnty., Assmt. Rev. Bonds, | |||
| (Nexton Impt. Dist.), 4.375%, 11/1/49 | BB–/P | 1,000,000 | 1,114,298 |
| SC State Jobs Econ. Dev. Auth. Edl. Fac. 144A Rev. | |||
| Bonds, (High Point Academy), Ser. A | |||
| 5.75%, 6/15/49 | Ba1 | 1,000,000 | 1,126,214 |
| 5.75%, 6/15/39 | Ba1 | 500,000 | 569,983 |
| Managed Municipal Income Trust 31 |
| MUNICIPAL BONDS AND NOTES (127.6%)* cont. | Rating** | Principal amount | Value |
| South Carolina cont. | |||
| SC State Jobs-Econ. Dev. Auth. Rev. Bonds, | |||
| (Bon Secours Mercy Hlth.), 4.00%, 12/1/44 | A1 | $4,000,000 | $4,687,554 |
| SC State Pub. Svcs. Auth. Rev. Bonds | |||
| Ser. A, 5.50%, 12/1/54 | A2 | 2,000,000 | 2,272,713 |
| Ser. C, 5.00%, 12/1/46 | A2 | 2,500,000 | 2,857,728 |
| (Santee Cooper), Ser. D, 5.00%, 12/1/43 | |||
| (Prerefunded 6/1/22) | A2 | 1,000,000 | 1,052,075 |
| Ser. C, 5.00%, 12/1/39 | A2 | 1,085,000 | 1,240,888 |
| Ser. A, 5.00%, 12/1/36 | A2 | 1,000,000 | 1,195,095 |
| 16,116,548 | |||
| Tennessee (0.7%) | |||
| Metro. Govt. Nashville & Davidson Cnty., Hlth. & Edl. | |||
| Fac. Board Rev. Bonds, (Blakeford at Green Hills | |||
| Oblig. Group), Ser. A, 4.00%, 11/1/45 | BBB–/F | 1,750,000 | 1,861,275 |
| Tennergy Corp., Gas Mandatory Put Bonds | |||
| (10/1/24), Ser. A, 5.00%, 2/1/50 | Aa2 | 1,000,000 | 1,146,971 |
| 3,008,246 | |||
| Texas (10.0%) | |||
| Arlington, Higher Ed. Fin. Corp. Rev. Bonds, | |||
| (Uplift Ed.), Ser. A, PSFG, 4.00%, 12/1/42 | AAA | 1,000,000 | 1,136,216 |
| Central TX Regl. Mobility Auth. Rev. Bonds, (Sr. Lien), | |||
| Ser. A, 5.00%, 1/1/33 (Prerefunded 1/1/23) | A– | 525,000 | 567,614 |
| Clifton, Higher Ed. Fin. Corp. Rev. Bonds | |||
| (Intl. Leadership), Ser. D, 6.125%, 8/15/48 | BB–/P | 2,500,000 | 2,892,020 |
| (Idea Pub. Schools), 5.00%, 8/15/32 | A– | 315,000 | 328,025 |
| (IDEA Pub. Schools), 5.00%, 8/15/28 | A– | 200,000 | 234,839 |
| Harris Cnty., Cultural Ed. Fac. Fin. Corp. Rev. Bonds | |||
| (Brazos Presbyterian Homes, Inc.), 5.00%, 1/1/37 | BBB–/F | 250,000 | 273,414 |
| (YMCA of the Greater Houston Area), Ser. A, | |||
| 5.00%, 6/1/33 | Baa2 | 1,000,000 | 1,034,817 |
| Houston, Arpt. Syst. Rev. Bonds, Ser. B-1, | |||
| 5.00%, 7/15/35 | B | 2,500,000 | 2,768,722 |
| Houston, Higher Ed. Fin. Corp. Rev. Bonds, | |||
| (Houston Baptist U.), 3.375%, 10/1/37 | BBB– | 500,000 | 500,156 |
| La Vernia, Higher Ed. Fin. Corp. 144A Rev. Bonds, | |||
| (Meridian World School, LLC), Ser. A, 5.25%, 8/15/35 | BB+ | 1,000,000 | 1,083,923 |
| Matagorda Cnty., Poll. Control Rev. Bonds, | |||
| (Dist. No. 1), Ser. A, AMBAC, 4.40%, 5/1/30 | A– | 1,250,000 | 1,525,849 |
| New Hope, Cultural Ed. Fac. Fin. Corp. Rev. Bonds | |||
| (Wesleyan Homes, Inc.), 5.50%, 1/1/43 | BB–/P | 500,000 | 520,767 |
| (CHF-Collegiate Hsg. Stephenville III, LLC), 5.00%, | |||
| 4/1/47 (Prerefunded 4/1/25) | AAA/P | 1,150,000 | 1,355,917 |
| (Collegiate Student Hsg. Island Campus, LLC), | |||
| Ser. A, 5.00%, 4/1/42 (Prerefunded 4/1/27) | AAA/P | 1,830,000 | 2,279,852 |
| (Collegiate Hsg.-Tarleton St.), 5.00%, 4/1/39 | |||
| (Prerefunded 4/1/24) | AAA/P | 500,000 | 563,177 |
| (Woman’s U.-Collegiate Hsg. Denton, LLC), | |||
| Ser. A-1, AGM, 4.125%, 7/1/53 | AA | 1,000,000 | 1,106,473 |
| Newark, Higher Ed. Fin. Corp. Rev. Bonds, | |||
| (Austin Achieve Pub. Schools, Inc.), 5.00%, 6/15/48 | BB–/P | 500,000 | 514,359 |
| 32 Managed Municipal Income Trust |
| MUNICIPAL BONDS AND NOTES (127.6%)* cont. | Rating** | Principal amount | Value |
| Texas cont. | |||
| Temple, Tax Increment 144A Tax Alloc. Bonds, | |||
| (Reinvestment Zone No. 1), Ser. A, 5.00%, 8/1/38 | BB+ | $1,500,000 | $1,651,540 |
| TX Private Activity Surface Trans. Corp. Rev. Bonds, | |||
| (Segment 3C), 5.00%, 6/30/58 | Baa3 | 2,500,000 | 3,009,576 |
| TX State Muni. Gas Acquisition & Supply Corp. | |||
| III Rev. Bonds | |||
| 5.00%, 12/15/32 | A3 | 1,000,000 | 1,344,459 |
| 5.00%, 12/15/31 | A3 | 1,000,000 | 1,325,328 |
| 5.00%, 12/15/30 | A3 | 1,000,000 | 1,304,877 |
| 5.00%, 12/15/29 | A3 | 1,000,000 | 1,286,100 |
| TX State Private Activity Bond Surface Trans. Corp. | |||
| Rev. Bonds, (Blueridge Trans. Group, LLC | |||
| (SH 288 Toll Lane)), 5.00%, 12/31/50 | Baa3 | 1,250,000 | 1,408,415 |
| TX State Transportation Commission G.O. Bonds, | |||
| 5.00% 10/1/44 (Prerefunded 10/1/24) T | AAA | 8,000,000 | 9,292,064 |
| TX State Trans. Comm. Rev. Bonds, | |||
| (State Hwy. 249 Sys.), Ser. A, zero %, 8/1/39 | Baa3 | 700,000 | 355,705 |
| Uptown Dev. Auth. Tax Alloc. Bonds, Ser. A, | |||
| 5.00%, 9/1/40 | BBB | 700,000 | 798,765 |
| 40,462,969 | |||
| Utah (1.2%) | |||
| Infrastructure Agcy. Telecomm. Rev. Bonds, | |||
| 4.00%, 10/15/39 | BBB–/F | 1,500,000 | 1,726,661 |
| MDA Mountain Village Pub. Infrastructure Dist. | |||
| Special Assmt., Ser. A, 5.00%, 8/1/50 | B/P | 1,045,000 | 1,175,118 |
| Mida Mountain Village Pub. Infrastructure Dist. 144A | |||
| Special Assmt. Bonds, (Mountain Village Assmt. | |||
| Area No. 2), 4.00%, 8/1/50 | B/P | 1,250,000 | 1,288,815 |
| UT State Charter School Fin. Auth. Rev. Bonds, | |||
| (Summit Academy, Inc.), Ser. A, 5.00%, 4/15/44 | AA | 625,000 | 745,619 |
| 4,936,213 | |||
| Virginia (2.8%) | |||
| Cherry Hill Cmnty., Dev. Auth. 144A Special Assmt. | |||
| Bonds, (Potomac Shores), 5.40%, 3/1/45 | B/P | 1,000,000 | 1,058,231 |
| Front Royal & Warren Cnty., Indl. Dev. Auth. Rev. | |||
| Bonds, (Valley Hlth. Oblig. Group), 4.00%, 1/1/50 | A1 | 2,500,000 | 2,723,243 |
| Lexington, Indl. Dev. Auth. Res. Care Fac. Rev. | |||
| Bonds, (Kendal at Lexington), 4.00%, 1/1/31 | BBB–/F | 675,000 | 711,999 |
| Lower Magnolia Green Cmnty., Dev. Auth. 144A | |||
| Special Assmt. Bonds, 5.00%, 3/1/35 | B/P | 485,000 | 509,923 |
| Small Bus. Fin. Auth. Private Activity Rev. Bonds, | |||
| (Transform 66-P3), 5.00%, 12/31/52 | Baa3 | 1,000,000 | 1,195,945 |
| Suffolk, Econ. Dev. Auth. Retirement Fac. Rev. | |||
| Bonds, (United Church Homes & Svcs. Oblig. Group), | |||
| 5.00%, 9/1/31 | BB/P | 500,000 | 543,289 |
| VA State Small Bus. Fin. Auth. Rev. Bonds | |||
| (Elizabeth River Crossings OPCO, LLC), | |||
| 6.00%, 1/1/37 | BBB– | 740,000 | 784,892 |
| (Express Lanes, LLC), 5.00%, 7/1/34 | BBB– | 1,150,000 | 1,182,490 |
| (National Sr. Campuses, Inc. Oblig. Group), | |||
| 4.00%, 1/1/39 | A/F | 2,520,000 | 2,813,222 |
| 11,523,234 |
| Managed Municipal Income Trust 33 |
| MUNICIPAL BONDS AND NOTES (127.6%)* cont. | Rating** | Principal amount | Value |
| Washington (2.4%) | |||
| Kalispel Tribe of Indians Priority Dist. Rev. Bonds, | |||
| Ser. A, 5.25%, 1/1/38 | BB+/P | $750,000 | $858,924 |
| Port of Seattle, Rev. Bonds, Ser. C, 5.00%, 4/1/40 | A1 | 625,000 | 700,964 |
| Port Seattle, Port Indl. Dev. Corp. Rev. Bonds, | |||
| (Delta Airlines, Inc.), 5.00%, 4/1/30 | BB | 800,000 | 856,533 |
| Tobacco Settlement Auth. of WA Rev. Bonds, | |||
| 5.25%, 6/1/32 | A– | 1,275,000 | 1,280,323 |
| WA State Hlth. Care Fac. Auth. Mandatory Put Bonds | |||
| (7/1/22), (Fred Hutchinson Cancer Research Ctr.), | |||
| Ser. B, 1.174%, 1/1/42 | A+ | 1,700,000 | 1,706,225 |
| WA State Hsg. Fin. Comm. Rev. Bonds, | |||
| (Wesley Homes Lea Hill) | |||
| 5.00%, 7/1/41 | B/P | 500,000 | 517,882 |
| 5.00%, 7/1/36 | B/P | 580,000 | 605,937 |
| WA State Hsg. Fin. Comm. 144A Rev. Bonds, | |||
| (Presbyterian Retirement Cmnty. Northwest), Ser. A, | |||
| 5.00%, 1/1/36 | BB/F | 1,175,000 | 1,273,028 |
| WA State Hsg. Fin. Comm. Nonprofit 144A Rev. | |||
| Bonds, (Spokane Intl. Academy), Ser. A | |||
| 5.00%, 7/1/56 | Ba2 | 1,130,000 | 1,247,349 |
| 5.00%, 7/1/50 | Ba2 | 500,000 | 556,841 |
| 9,604,006 | |||
| Wisconsin (2.6%) | |||
| Pub. Fin. Auth. 144A Rev. Bonds, (Roseman U. | |||
| of Hlth. Sciences), 5.00%, 4/1/40 | BB | 1,150,000 | 1,347,232 |
| Pub. Fin. Auth. Arpt. Fac. Rev. Bonds, | |||
| (Sr. Oblig. Group), 5.25%, 7/1/28 | BBB+ | 350,000 | 365,690 |
| Pub. Fin. Auth. Edl. Fac. Rev. Bonds, | |||
| (Piedmont Cmnty. Charter School), 5.00%, 6/15/53 | Baa3 | 1,150,000 | 1,325,949 |
| Pub. Fin. Auth. Exempt Fac. Rev. Bonds, | |||
| (Celanese U.S. Holdings, LLC), Ser. C, 4.30%, 11/1/30 | Baa3 | 300,000 | 334,133 |
| Pub. Fin. Auth. Higher Ed. Fac. Rev. Bonds, | |||
| (Gannon U.) | |||
| 5.00%, 5/1/47 | BBB+ | 250,000 | 284,322 |
| 5.00%, 5/1/42 | BBB+ | 1,090,000 | 1,246,709 |
| Pub. Fin. Auth. Retirement Communities | |||
| Rev. Bonds, (Evergreens Oblig. Group), Ser. A, | |||
| 5.00%, 11/15/49 | BBB/F | 1,750,000 | 1,983,231 |
| Pub. Fin. Auth. Retirement Fac. 144A Rev. Bonds, | |||
| (Southminster, Inc.), 5.00%, 10/1/48 | BB/F | 800,000 | 874,734 |
| WI State Hlth. & Edl. Fac. Auth. Rev. Bonds, | |||
| (St. John’s Cmnty., Inc.), Ser. B, 5.00%, 9/15/45 | BBB–/F | 250,000 | 256,759 |
| WI State Pub. Fin. Auth Sr. Living 144A Rev. Bonds | |||
| (Rose Villa, Inc.), Ser. A, 5.75%, 11/15/44 | BB–/P | 1,800,000 | 1,940,210 |
| (Mary’s Woods at Marylhurst), Ser. A, | |||
| 5.25%, 5/15/37 | BB/F | 380,000 | 410,802 |
| WI State Pub. Fin. Auth. 144A Rev. Bonds, | |||
| (Church Home of Hartford, Inc.), Ser. A, | |||
| 5.00%, 9/1/30 | BB/F | 945,000 | 1,028,079 |
| 11,397,850 | |||
| Total municipal bonds and notes (cost $480,356,266) | $518,413,912 | ||
| 34 Managed Municipal Income Trust |
| Principal amount/ | |||
| SHORT-TERM INVESTMENTS (3.7%)* | shares | Value | |
| Putnam Short Term Investment Fund Class P 0.10% L | Shares | 14,258,438 | $14,258,438 |
| U.S. Treasury Bills 0.042%, 6/10/21 # | $200,000 | 199,998 | |
| U.S. Treasury Cash Management Bills 0.018%, 7/13/21 § | 600,000 | 599,991 | |
| Total short-term investments (cost $15,058,407) | $15,058,427 | ||
| TOTAL INVESTMENTS | |||
| Total investments (cost $495,414,673) | $533,472,339 | ||
Notes to the fund’s portfolio
Unless noted otherwise, the notes to the fund’s portfolio are for the close of the fund’s reporting period, which ran from November 1, 2020 through April 30, 2021 (the reporting period). Within the following notes to the portfolio, references to “Putnam Management” represent Putnam Investment Management, LLC, the fund’s manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC and references to “ASC 820” represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures.
* Percentages indicated are based on net assets of $406,142,198.
** The Moody’s, Standard & Poor’s or Fitch ratings indicated are believed to be the most recent ratings available at the close of the reporting period for the securities listed. Ratings are generally ascribed to securities at the time of issuance. While the agencies may from time to time revise such ratings, they undertake no obligation to do so, and the ratings do not necessarily represent what the agencies would ascribe to these securities at the close of the reporting period. Securities rated by Fitch are indicated by “/F.” Securities rated by Putnam are indicated by “/P.” The Putnam rating categories are comparable to the Standard & Poor’s classifications. If a security is insured, it will usually be rated by the ratings organizations based on the financial strength of the insurer.
† This security is non-income-producing.
†† The interest rate and date shown parenthetically represent the new interest rate to be paid and the date the fund will begin accruing interest at this rate.
# This security, in part or in entirety, was pledged and segregated with the broker to cover margin requirements for futures contracts at the close of the reporting period. Collateral at period end totaled $187,000 and is included in Investments in securities on the Statement of assets and liabilities (Notes 1 and 9).
§ This security, in part or in entirety, was pledged and segregated with the custodian for collateral on the initial margin on certain centrally cleared derivative contracts at the close of the reporting period. Collateral at period end totaled $585,000 and is included in Investments in securities on the Statement of assets and liabilities (Notes 1 and 9).
## Forward commitment, in part or in entirety (Note 1).
L Affiliated company (Note 6). The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period.
T Underlying security in a tender option bond transaction. This security has been segregated as collateral for financing transactions.
### When-issued security (Note 1).
At the close of the reporting period, the fund maintained liquid assets totaling $63,137,400 to cover certain derivative contracts, tender option bonds and the settlement of certain securities.
Unless otherwise noted, the rates quoted in Short-term investments security descriptions represent the weighted average yield to maturity.
144A after the name of an issuer represents securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
| Managed Municipal Income Trust 35 |
On Mandatory Put Bonds, the rates shown are the current interest rates at the close of the reporting period and the dates shown represent the next mandatory put dates. Rates are set by remarketing agents and may take into consideration market supply and demand, credit quality and the current SIFMA Municipal Swap Index, 1 Month US LIBOR or 3 Month US LIBOR rates, which were 0.06%, 0.11% and 0.18%, respectively, as of the close of the reporting period.
The dates shown parenthetically on prerefunded bonds represent the next prerefunding dates.
The dates shown on debt obligations are the original maturity dates.
The fund had the following sector concentrations greater than 10% at the close of the reporting period (as a percentage of net assets):
| Health care | 26.3% | |
| Education | 19.0 | |
| Tax bonds | 11.3 | |
| State debt | 11.0 | |
| Land | 10.4 |
| FUTURES CONTRACTS OUTSTANDING at 4/30/21 (Unaudited) | |||||
| Unrealized | |||||
| Number of | Notional | Expiration | appreciation/ | ||
| contracts | amount | Value | date | (depreciation) | |
| U.S. Treasury Note 5 yr (Short) | 229 | $28,381,688 | $28,381,688 | Jun-21 | $13,797 |
| Unrealized appreciation | 13,797 | ||||
| Unrealized (depreciation) | — | ||||
| Total | $13,797 | ||||
| OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 4/30/21 (Unaudited) | ||||||
| Upfront | ||||||
| premium | Termina- | Payments | Total return | Unrealized | ||
| Swap counterparty/ | received | tion | received (paid) | received by | appreciation/ | |
| Notional amount | Value | (paid) | date | by fund | or paid by fund | (depreciation) |
| Citibank, N.A. | ||||||
| $10,000,000 | $21,780 | $— | 5/25/21 | — | 0.44% minus | $(21,780) |
| Municipal Market | ||||||
| Data Index AAA | ||||||
| municipal yields | ||||||
| 5 Year rate — At | ||||||
| maturity | ||||||
| 5,000,000 | 25,810 | — | 7/21/21 | — | 1.18% minus | 25,810 |
| Municipal Market | ||||||
| Data Index AAA | ||||||
| municipal yields | ||||||
| 10 Year rate — At | ||||||
| maturity | ||||||
| 2,500,000 | 12,418 | — | 5/25/21 | — | 1.62% minus | 12,418 |
| Municipal Market | ||||||
| Data Index AAA | ||||||
| municipal yields | ||||||
| 30 Year rate — At | ||||||
| maturity | ||||||
| 36 Managed Municipal Income Trust |
| OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 4/30/21 (Unaudited) cont. | ||||||
| Upfront | ||||||
| premium | Termina- | Payments | Total return | Unrealized | ||
| Swap counterparty/ | received | tion | received (paid) | received by | appreciation/ | |
| Notional amount | Value | (paid) | date | by fund | or paid by fund | (depreciation) |
| Morgan Stanley & Co. International PLC | ||||||
| $5,000,000 | $225 | $— | 6/15/21 | — | 0.51% minus | $(225) |
| Municipal Market | ||||||
| Data Index AAA | ||||||
| municipal yields | ||||||
| 5 Year rate — At | ||||||
| maturity | ||||||
| 6,000,000 | 23,676 | — | 7/15/21 | — | 1.16% minus | 23,676 |
| Municipal Market | ||||||
| Data Index AAA | ||||||
| municipal yields | ||||||
| 10 Year rate — At | ||||||
| maturity | ||||||
| Upfront premium received | — | Unrealized appreciation | 61,904 | |||
| Upfront premium (paid) | — | Unrealized (depreciation) | (22,005) | |||
| Total | $— | Total | $39,899 | |||
| CENTRALLY CLEARED TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 4/30/21 (Unaudited) | ||||||
| Upfront | ||||||
| premium | Termina- | Payments | Total return | Unrealized | ||
| received | tion | received (paid) | received by | appreciation/ | ||
| Notional amount | Value | (paid) | date | by fund | or paid by fund | (depreciation) |
| $23,153,000 | $229,631 | $(234) | 3/29/26 | 2.51% — At | USA Non Revised | $(229,865) |
| maturity | Consumer Price | |||||
| Index-Urban | ||||||
| (CPI-U) — At | ||||||
| maturity | ||||||
| Total | $(234) | $(229,865) | ||||
| Managed Municipal Income Trust 37 |
ASC 820 establishes a three-level hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of the fund’s investments. The three levels are defined as follows:
Level 1: Valuations based on quoted prices for identical securities in active markets.
Level 2: Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.
Level 3: Valuations based on inputs that are unobservable and significant to the fair value measurement.
The following is a summary of the inputs used to value the fund’s net assets as of the close of the reporting period:
| Valuation inputs | |||||
| Investments in securities: | Level 1 | Level 2 | Level 3 | ||
| Municipal bonds and notes | $— | $518,413,912 | $— | ||
| Short-term investments | — | 15,058,427 | — | ||
| Totals by level | $— | $533,472,339 | $— | ||
| Valuation inputs | |||||
| Other financial instruments: | Level 1 | Level 2 | Level 3 | ||
| Futures contracts | $13,797 | $— | $— | ||
| Total return swap contracts | — | (189,732) | — | ||
| Totals by level | $13,797 | $(189,732) | $— | ||
The accompanying notes are an integral part of these financial statements.
| 38 Managed Municipal Income Trust |
Statement of assets and liabilities 4/30/21 (Unaudited)
| ASSETS | |
| Investment in securities, at value (Notes 1 and 9): | |
| Unaffiliated issuers (identified cost $481,156,235) | $519,213,901 |
| Affiliated issuers (identified cost $14,258,438) (Notes 1 and 6) | 14,258,438 |
| Cash | 7,401 |
| Interest and other receivables | 6,702,233 |
| Receivable for investments sold | 1,278,243 |
| Unrealized appreciation on OTC swap contracts (Note 1) | 61,904 |
| Prepaid assets | 48,958 |
| Total assets | 541,571,078 |
| LIABILITIES | |
| Payable for investments purchased | 425,234 |
| Payable for purchases of delayed delivery securities (Note 1) | 1,603,194 |
| Payable for compensation of Manager (Note 2) | 657,327 |
| Payable for custodian fees (Note 2) | 6,783 |
| Payable for investor servicing fees (Note 2) | 33,595 |
| Payable for Trustee compensation and expenses (Note 2) | 163,085 |
| Payable for administrative services (Note 2) | 1,204 |
| Payable for floating rate notes issued (Note 1) | 31,395,450 |
| Payable for variation margin on futures contracts (Note 1) | 8,887 |
| Payable for variation margin on centrally cleared swap contracts (Note 1) | 388 |
| Distributions payable to shareholders | 1,656,173 |
| Distributions payable to preferred shareholders (Note 1) | 809 |
| Unrealized depreciation on OTC swap contracts (Note 1) | 22,005 |
| Preferred share remarketing agent fees | 13,661 |
| Other accrued expenses | 91,085 |
| Total liabilities | 36,078,880 |
| Series A remarketed preferred shares: (240 shares authorized and issued at $100,000 per | |
| share) (Note 4) | 24,000,000 |
| Series C remarketed preferred shares: (1,507 shares authorized and issued at $50,000 per | |
| share) (Note 4) | 75,350,000 |
| Net assets | $406,142,198 |
| REPRESENTED BY | |
| Paid-in capital — common shares (Unlimited shares authorized) (Notes 1 and 5) | $368,234,163 |
| Total distributable earnings (Note 1) | 37,908,035 |
| Total — Representing net assets applicable to common shares outstanding | $406,142,198 |
| COMPUTATION OF NET ASSET VALUE | |
| Net asset value per common share ($406,142,198 divided by 48,889,269 shares) | $8.31 |
*Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
The accompanying notes are an integral part of these financial statements.
| Managed Municipal Income Trust 39 |
Statement of operations Six months ended 4/30/21 (Unaudited)
| INVESTMENT INCOME | |
| Interest (including interest income of $14,732 from investments in affiliated issuers) (Note 6) | $9,642,918 |
| Total investment income | 9,642,918 |
| EXPENSES | |
| Compensation of Manager (Note 2) | 1,355,782 |
| Investor servicing fees (Note 2) | 100,316 |
| Custodian fees (Note 2) | 6,154 |
| Trustee compensation and expenses (Note 2) | 9,342 |
| Administrative services (Note 2) | 6,828 |
| Interest and fees expense (Note 2) | 106,896 |
| Preferred share remarketing agent fees | 74,929 |
| Other | 218,101 |
| Total expenses | 1,878,348 |
| Expense reduction (Note 2) | (308) |
| Net expenses | 1,878,040 |
| Net investment income | 7,764,878 |
| REALIZED AND UNREALIZED GAIN (LOSS) | |
| Net realized gain on: | |
| Securities from unaffiliated issuers (Notes 1 and 3) | 3,959,713 |
| Futures contracts (Note 1) | 190,140 |
| Swap contracts (Note 1) | 150,478 |
| Total net realized gain | 4,300,331 |
| Change in net unrealized appreciation (depreciation) on: | |
| Securities from unaffiliated issuers | 17,049,112 |
| Futures contracts | (54,430) |
| Swap contracts | (131,455) |
| Total change in net unrealized appreciation | 16,863,227 |
| Net gain on investments | 21,163,558 |
| Net increase in net assets resulting from operations | 28,928,436 |
| Distributions to Series A and C remarketed preferred shareholders (Note 1): | |
| From ordinary income | |
| From tax exempt net investment income | (79,282) |
| Net increase in net assets resulting from operations (applicable to common shareholders) | $28,849,154 |
The accompanying notes are an integral part of these financial statements.
| 40 Managed Municipal Income Trust |
Statement of changes in net assets
| INCREASE (DECREASE) IN NET ASSETS | Six months ended 4/30/21* | Year ended 10/31/20 |
| Operations | ||
| Net investment income | $7,764,878 | $16,262,790 |
| Net realized gain (loss) on investments | 4,300,331 | (1,997,615) |
| Change in net unrealized appreciation (depreciation) | ||
| of investments | 16,863,227 | (6,588,793) |
| Net increase in net assets resulting from operations | 28,928,436 | 7,676,382 |
| Distributions to Series A and C remarketed preferred | ||
| shareholders (Note 1): | ||
| From ordinary income | ||
| From tax exempt net investment income | (79,282) | (1,056,290) |
| Net realized short-term gains on investments | — | (288,446) |
| Net increase in net assets resulting from operations | ||
| (applicable to common shareholders) | 28,849,154 | 6,331,646 |
| Distributions to common shareholders (note 1): | ||
| From ordinary income | ||
| From tax exempt net investment income | (9,384,960) | (16,310,282) |
| Net realized short-term gains on investments | — | (2,501,634) |
| Increase from issuance of common shares in connection | ||
| with reinvestment of distributions | 75,626 | — |
| Decrease from capital shares repurchased (Note 5) | — | (2,159,037) |
| Total increase (decrease) in net assets | 19,539,820 | (14,639,307) |
| NET ASSETS | ||
| Beginning of period | 386,602,378 | 401,241,685 |
| End of period | $406,142,198 | $386,602,378 |
| NUMBER OF FUND SHARES | ||
| Common shares outstanding at beginning of period | 48,880,001 | 49,204,185 |
| Shares issued in connection with dividend | ||
| reinvestment plan | 9,268 | — |
| Shares repurchased (Note 5) | — | (324,184) |
| Common shares outstanding at end of period | 48,889,269 | 48,880,001 |
| Series A Remarketed preferred shares outstanding at | ||
| beginning and end of period | 240 | 240 |
| Series C Remarketed preferred shares outstanding at | ||
| beginning and end of period | 1,507 | 1,507 |
*Unaudited.
The accompanying notes are an integral part of these financial statements.
| Managed Municipal Income Trust 41 |
Financial highlights (For a common share outstanding throughout the period)
| PER-SHARE OPERATING PERFORMANCE | ||||||
| Sixmonths | Year ended | |||||
| ended** | ||||||
| 4/30/21 | 10/31/20 | 10/31/19 | 10/31/18 | 10/31/17 | 10/31/16 | |
| Net asset value, beginning of period | ||||||
| (common shares) | $7.91 | $8.15 | $7.64 | $7.95 | $8.10 | $7.97 |
| Investment operations: | ||||||
| Net investment income a | .16 | .33 | .38 | .40 | .39 | .43 |
| Net realized and unrealized | ||||||
| gain (loss) on investments | .43 | (.17) | .54 | (.35) | (.17) | .15 |
| Total from investment operations | .59 | .16 | .92 | .05 | .22 | .58 |
| Distributions to preferred shareholders: | ||||||
| From net investment income | —e | (.02) | (.04) | (.04) | (.02) | (.01) |
| From capital gains | — | (.01) | (.01) | — | — | — |
| Total from investment operations | ||||||
| (applicable to common shareholders) | .59 | .13 | .87 | .01 | .20 | .57 |
| Distributions to common shareholders: | ||||||
| From net investment income | (.19) | (.33) | (.31) | (.37) | (.39) | (.44) |
| From capital gains | — | (.05) | (.07) | — | — | — |
| From return of capital | — | — | — | — | (.01) | — |
| Total distributions | (.19) | (.38) | (.38) | (.37) | (.40) | (.44) |
| Increase from shares repurchased | — | .01 | .02 | .05 | —e | —e |
| Increase from Preferred shares | ||||||
| tender offer | — | — | — | — | .05 | — |
| Net asset value, end of period | ||||||
| (common shares) | $8.31 | $7.91 | $8.15 | $7.64 | $7.95 | $8.10 |
| Market price, end of period | ||||||
| (common shares) | $8.26 | $7.64 | $7.97 | $6.71 | $7.43 | $7.48 |
| Total return at market price (%) | ||||||
| (common shares) b | 10.68* | 0.77 | 24.89 | (4.91) | 4.84 | 8.38 |
| Total return at net asset value (%) | ||||||
| (common shares) b | 7.54* | 1.93 | 11.91 | 0.71 | 3.32 | 7.20 |
| RATIOS AND SUPPLEMENTAL DATA | ||||||
| Net assets, end of period | ||||||
| (common shares) (in thousands) | $406,142 | $386,602 | $401,242 | $385,024 | $426,968 | $436,309 |
| Ratio of expenses to average | ||||||
| net assets (including interest | ||||||
| expense) (%) c,d,f | .47* | .98h | 1.01 | 1.03 | 1.13g | .92 |
| Ratio of net investment income | ||||||
| to average net assets (%) c | 1.91* | 3.92 | 4.21 | 4.54 | 4.73 | 5.09 |
| Portfolio turnover (%) | 9* | 38 | 36 | 28 | 30 | 24 |
(Continued on next page)
| 42 Managed Municipal Income Trust |
Financial highlights cont.
* Not annualized.
** Unaudited.
a Per share net investment income has been determined on the basis of the weighted average number of shares outstanding during the period.
b Total return assumes dividend reinvestment.
c Ratios reflect net assets available to common shares only; net investment income ratio also reflects reduction for dividend payments to preferred shareholders.
d Includes amounts paid through expense offset arrangements, if any (Note 2).
e Amount represents less than $0.01 per share.
f Includes interest and fee expense associated with borrowings which amounted to:
| Percentage of average net assets | |||
| April 30, 2021 | 0.03% | ||
| October 31, 2020 | 0.09 | ||
| October 31, 2019 | 0.14 | ||
| October 31, 2018 | 0.17 | ||
| October 31, 2017 | 0.06 | ||
| October 31, 2016 | 0.03 |
g Includes 0.17% of increased proxy solicitation and legal fees related to the 2017 annual shareholder meeting.
h Reflects waiver of certain fund expenses in connection with the fund’s remarketing preferred shares during the period.
As a result of such waiver, the expenses of the fund for the period ended October 31, 2020 reflect a reduction of less than 0.01% average net assets (Note 2).
The accompanying notes are an integral part of these financial statements.
| Managed Municipal Income Trust 43 |
Notes to financial statements 4/30/21 (Unaudited)
Within the following Notes to financial statements, references to “State Street” represent State Street Bank and Trust Company, references to “the SEC” represent the Securities and Exchange Commission, references to “Putnam Management” represent Putnam Investment Management, LLC, the fund’s manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC and references to “OTC”, if any, represent over-the-counter. Unless otherwise noted, the “reporting period” represents the period from November 1, 2020 through April 30, 2021.
Putnam Managed Municipal Income Trust (the fund) is a Massachusetts business trust, which is registered under the Investment Company Act of 1940, as amended, as a diversified closed-end management investment company. The goal of the fund is to seek a high level of current income exempt from federal income tax. The fund intends to achieve its goal by investing in a diversified portfolio of tax-exempt municipal securities which Putnam Management believes does not involve undue risk to income or principal. Up to 60% of the fund’s assets may consist of high-yield tax-exempt municipal securities that are below investment grade and involve special risk considerations. The fund also uses leverage, primarily by issuing preferred shares in an effort to enhance the returns for the common shareholders. The fund’s shares trade on a stock exchange at market prices, which may be lower than the fund’s net asset value.
In the normal course of business, the fund enters into contracts that may include agreements to indemnify another party under given circumstances. The fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be, but have not yet been, made against the fund. However, the fund’s management team expects the risk of material loss to be remote.
The fund has entered into contractual arrangements with an investment adviser, administrator, transfer agent and custodian, who each provide services to the fund. Unless expressly stated otherwise, shareholders are not parties to, or intended beneficiaries of these contractual arrangements, and these contractual arrangements are not intended to create any shareholder right to enforce them against the service providers or to seek any remedy under them against the service providers, either directly or on behalf of the fund.
Under the fund’s Amended and Restated Agreement and Declaration of Trust, any claims asserted against or on behalf of the Putnam Funds, including claims against Trustees and Officers, must be brought in state and federal courts located within the Commonwealth of Massachusetts.
Note 1: Significant accounting policies
The following is a summary of significant accounting policies consistently followed by the fund in the preparation of its financial statements. The preparation of financial statements is in conformity with accounting principles generally accepted in the United States of America and requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations. Actual results could differ from those estimates. Subsequent events after the Statement of assets and liabilities date through the date that the financial statements were issued have been evaluated in the preparation of the financial statements.
Security valuation Portfolio securities and other investments are valued using policies and procedures adopted by the Board of Trustees. The Trustees have formed a Pricing Committee to oversee the implementation of these procedures and have delegated responsibility for valuing the fund’s assets in accordance with these procedures to Putnam Management. Putnam Management has established an internal Valuation Committee that is responsible for making fair value determinations, evaluating the effectiveness of the pricing policies of the fund and reporting to the Pricing Committee.
Tax-exempt bonds and notes are generally valued on the basis of valuations provided by an independent pricing service approved by the Trustees. Such services use information with respect to transactions in bonds, quotations from bond dealers, market transactions in comparable securities and various relationships between securities in determining value. These securities will generally be categorized as Level 2.
Investments in open-end investment companies (excluding exchange-traded funds), if any, which can be classified as Level 1 or Level 2 securities, are valued based on their net asset value. The net asset value of such investment companies equals the total value of their assets less their liabilities and divided by the number of their outstanding shares.
Certain investments, including certain restricted and illiquid securities and derivatives, are also valued at fair value following procedures approved by the Trustees. To assess the continuing appropriateness of fair valuations, the Valuation Committee reviews and affirms the reasonableness of such valuations on a regular basis after
| 44 Managed Municipal Income Trust |
considering all relevant information that is reasonably available. Such valuations and procedures are reviewed periodically by the Trustees. These valuations consider such factors as significant market or specific security events such as interest rate or credit quality changes, various relationships with other securities, discount rates, U.S. Treasury, U.S. swap and credit yields, index levels, convexity exposures, recovery rates, sales and other multiples and resale restrictions. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs. The fair value of securities is generally determined as the amount that the fund could reasonably expect to realize from an orderly disposition of such securities over a reasonable period of time. By its nature, a fair value price is a good faith estimate of the value of a security in a current sale and does not reflect an actual market price, which may be different by a material amount.
Security transactions and related investment income Security transactions are recorded on the trade date (the date the order to buy or sell is executed). Gains or losses on securities sold are determined on the identified cost basis.
Interest income, net of any applicable withholding taxes, if any, and including amortization and accretion of premiums and discounts on debt securities, is recorded on the accrual basis.
Securities purchased or sold on a when-issued or forward commitment basis may be settled at a future date beyond customary settlement time; interest income is accrued based on the terms of the securities. Losses may arise due to changes in the fair value of the underlying securities or if the counterparty does not perform under the contract.
Futures contracts The fund uses futures contracts for hedging treasury term structure risk and for yield curve positioning.
The potential risk to the fund is that the change in value of futures contracts may not correspond to the change in value of the hedged instruments. In addition, losses may arise from changes in the value of the underlying instruments, if there is an illiquid secondary market for the contracts, if interest or exchange rates move unexpectedly or if the counterparty to the contract is unable to perform. With futures, there is minimal counterparty credit risk to the fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. Risks may exceed amounts recognized on the Statement of assets and liabilities. When the contract is closed, the fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.
Futures contracts are valued at the quoted daily settlement prices established by the exchange on which they trade. The fund and the broker agree to exchange an amount of cash equal to the daily fluctuation in the value of the futures contract. Such receipts or payments are known as “variation margin.”
Futures contracts outstanding at period end, if any, are listed after the fund’s portfolio.
Interest rate swap contracts The fund entered into OTC and/or centrally cleared interest rate swap contracts, which are arrangements between two parties to exchange cash flows based on a notional principal amount, for hedging term structure risk and for yield curve positioning.
An OTC and centrally cleared interest rate swap can be purchased or sold with an upfront premium. For OTC interest rate swap contracts, an upfront payment received by the fund is recorded as a liability on the fund’s books. An upfront payment made by the fund is recorded as an asset on the fund’s books. OTC and centrally cleared interest rate swap contracts are marked to market daily based upon quotations from an independent pricing service or market makers. Any change is recorded as an unrealized gain or loss on OTC interest rate swaps. Daily fluctuations in the value of centrally cleared interest rate swaps are settled through a central clearing agent and are recorded in variation margin on the Statement of assets and liabilities and recorded as unrealized gain or loss. Payments, including upfront premiums, received or made are recorded as realized gains or losses at the reset date or the closing of the contract. Certain OTC and centrally cleared interest rate swap contracts may include extended effective dates. Payments related to these swap contracts are accrued based on the terms of the contract.
The fund could be exposed to credit or market risk due to unfavorable changes in the fluctuation of interest rates or if the counterparty defaults, in the case of OTC interest rate contracts, or the central clearing agency or a clearing member defaults, in the case of centrally cleared interest rate swap contracts, on its respective obligation to perform under the contract. The fund’s maximum risk of loss from counterparty risk or central clearing risk is the fair value of the contract. This risk may be mitigated for OTC interest rate swap contracts by having a master netting arrangement between the fund and the counterparty and for centrally cleared interest rate swap contracts through the daily exchange of variation margin. There is minimal counterparty risk with respect
| Managed Municipal Income Trust 45 |
to centrally cleared interest rate swap contracts due to the clearinghouse guarantee fund and other resources that are available in the event of a clearing member default. Risk of loss may exceed amounts recognized on the Statement of assets and liabilities.
OTC and centrally cleared interest rate swap contracts outstanding, including their respective notional amounts at period end, if any, are listed after the fund’s portfolio.
Total return swap contracts The fund entered into OTC and/or centrally cleared total return swap contracts, which are arrangements to exchange a market-linked return for a periodic payment, both based on a notional principal amount, to hedge sector exposure and for gaining exposure to specific sectors.
To the extent that the total return of the security, index or other financial measure underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the fund will receive a payment from or make a payment to the counterparty. OTC and/or centrally cleared total return swap contracts are marked to market daily based upon quotations from an independent pricing service or market maker. Any change is recorded as an unrealized gain or loss on OTC total return swaps. Daily fluctuations in the value of centrally cleared total return swaps are settled through a central clearing agent and are recorded in variation margin on the Statement of assets and liabilities and recorded as unrealized gain or loss. Payments received or made are recorded as realized gains or losses. Certain OTC and/or centrally cleared total return swap contracts may include extended effective dates. Payments related to these swap contracts are accrued based on the terms of the contract. The fund could be exposed to credit or market risk due to unfavorable changes in the fluctuation of interest rates or in the price of the underlying security or index, the possibility that there is no liquid market for these agreements or that the counterparty may default on its obligation to perform. The fund’s maximum risk of loss from counterparty risk or central clearing risk is the fair value of the contract. This risk may be mitigated for OTC total return swap contracts by having a master netting arrangement between the fund and the counterparty and for centrally cleared total return swap contracts through the daily exchange of variation margin. There is minimal counterparty risk with respect to centrally cleared total return swap contracts due to the clearinghouse guarantee fund and other resources that are available in the event of a clearing member default. Risk of loss may exceed amounts recognized on the Statement of assets and liabilities.
OTC and/or centrally cleared total return swap contracts outstanding, including their respective notional amounts at period end, if any, are listed after the fund’s portfolio.
Tender option bond transactions The fund may participate in transactions whereby a fixed-rate bond is transferred to a tender option bond trust (TOB trust) sponsored by a broker. The TOB trust funds the purchase of the fixed rate bonds by issuing floating-rate bonds to third parties and allowing the fund to retain the residual interest in the TOB trust’s assets and cash flows, which are in the form of inverse floating rate bonds. The inverse floating rate bonds held by the fund give the fund the right to (1) cause the holders of the floating rate bonds to tender their notes at par, and (2) to have the fixed-rate bond held by the TOB trust transferred to the fund, causing the TOB trust to collapse. The fund accounts for the transfer of the fixed-rate bond to the TOB trust as a secured borrowing by including the fixed-rate bond in the fund’s portfolio and including the floating rate bond as a liability in the Statement of assets and liabilities. At the close of the reporting period, the fund’s investments with a value of $51,705,309 were held by the TOB trust and served as collateral for $31,395,450 in floating-rate bonds outstanding. For the reporting period ended, the fund incurred interest expense of $17,321 for these investments based on an average interest rate of 0.12%.
Master agreements The fund is a party to ISDA (International Swaps and Derivatives Association, Inc.) Master Agreements (Master Agreements) with certain counterparties that govern OTC derivative and foreign exchange contracts entered into from time to time. The Master Agreements may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. With respect to certain counterparties, in accordance with the terms of the Master Agreements, collateral pledged to the fund is held in a segregated account by the fund’s custodian and, with respect to those amounts which can be sold or repledged, is presented in the fund’s portfolio.
Collateral pledged by the fund is segregated by the fund’s custodian and identified in the fund’s portfolio. Collateral can be in the form of cash or debt securities issued by the U.S. Government or related agencies or other securities as agreed to by the fund and the applicable counterparty. Collateral requirements are determined based on the fund’s net position with each counterparty.
Termination events applicable to the fund may occur upon a decline in the fund’s net assets below a specified threshold over a certain period of time. Termination events applicable to counterparties may occur upon a decline in the counterparty’s long-term and short-term credit ratings below a specified level. In each case,
| 46 Managed Municipal Income Trust |
upon occurrence, the other party may elect to terminate early and cause settlement of all derivative and foreign exchange contracts outstanding, including the payment of any losses and costs resulting from such early termination, as reasonably determined by the terminating party. Any decision by one or more of the fund’s counterparties to elect early termination could impact the fund’s future derivative activity.
At the close of the reporting period, the fund did not have a net liability position on open derivative contracts subject to the Master Agreements.
Federal taxes It is the policy of the fund to distribute all of its income within the prescribed time period and otherwise comply with the provisions of the Internal Revenue Code of 1986, as amended (the Code), applicable to regulated investment companies. It is also the intention of the fund to distribute an amount sufficient to avoid imposition of any excise tax under Section 4982 of the Code.
The fund is subject to the provisions of Accounting Standards Codification 740 Income Taxes (ASC 740). ASC 740 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The fund did not have a liability to record for any unrecognized tax benefits in the accompanying financial statements. No provision has been made for federal taxes on income, capital gains or unrealized appreciation on securities held nor for excise tax on income and capital gains. Each of the fund’s federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service.
Tax cost of investments includes adjustments to net unrealized appreciation (depreciation) which may not necessarily be final tax cost basis adjustments, but closely approximate the tax basis unrealized gains and losses that may be realized and distributed to shareholders. The aggregate identified cost on a tax basis is $495,873,082, resulting in gross unrealized appreciation and depreciation of $64,833,080 and $27,409,758, respectively, or net unrealized appreciation of $37,423,322.
Distributions to shareholders Distributions to common and preferred shareholders from net investment income are recorded by the fund on the ex-dividend date. Distributions from capital gains, if any, are recorded on the ex-dividend date and paid at least annually. The fund used targeted distribution rates to its common shareholders. Distributions are sourced first from tax-exempt and ordinary income. The balance of the distributions, if any, comes next from capital gain and then will constitute a return of capital. A return of capital is not taxable; rather it reduces a shareholder’s tax basis in their shares of the fund. The fund may make return of capital distributions to achieve the targeted distribution rates. Dividends on remarketed preferred shares become payable when, as and if declared by the Trustees. Each dividend period for the remarketed preferred Series A shares is generally a 28 day period, and generally a 7 day period for Series C shares. The applicable dividend rate for the remarketed preferred shares on April 30, 2021, was 0.099% for Series A shares and 0.099% for Series C shares.
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Dividend sources are estimated at the time of declaration. Actual results may vary. Any non-taxable return of capital cannot be determined until final tax calculations are completed after the end of the fund’s fiscal year. Reclassifications are made to the fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryovers) under income tax regulations.
During the reporting period, the fund has experienced unsuccessful remarketings of its remarketed preferred shares. As a result, dividends to the remarketed preferred shares have been paid at the “maximum dividend rate,” pursuant to the fund’s by-laws, which, based on the current credit quality of the remarketed preferred shares, equals 110% of the 60-day “AA” composite commercial paper rate.
Determination of net asset value Net asset value of the common shares is determined by dividing the value of all assets of the fund, less all liabilities and the liquidation preference (redemption value of preferred shares, plus accumulated and unpaid dividends) of any outstanding remarketed preferred shares, by the total number of common shares outstanding as of period end.
Note 2: Management fee, administrative services and other transactions
The fund pays Putnam Management for management and investment advisory services quarterly based on the average net assets of the fund, including assets attributable to preferred shares. Such fee is based on the following annual rates based on the average weekly net assets attributable to common and preferred shares.
| Managed Municipal Income Trust 47 |
The lesser of (i) 0.550% of average net assets attributable to common and preferred shares outstanding, or(ii) the following rates:
| of the first $500 million of average | of the next $5 billion of average weekly | |||
| 0.650% | weekly net assets, | 0.425% | net assets, | |
| of the next $500 million of average | of the next $5 billion of average weekly | |||
| 0.550% | weekly net assets, | 0.405% | net assets, | |
| of the next $500 million of average | of the next $5 billion of average weekly | |||
| 0.500% | weekly net assets, | 0.390% | net assets and | |
| of the next $5 billion of average weekly | 0.380% | of any excess thereafter. | ||
| 0.450% | net assets, |
For the reporting period, the management fee represented an effective rate (excluding the impact from any expense waivers in effect) of 0.271% of the fund’s average net assets attributable to common and preferred shares outstanding.
If dividends payable on remarketed preferred shares during any dividend payment period plus any expenses attributable to remarketed preferred shares for that period exceed the fund’s gross income attributable to the proceeds of the remarketed preferred shares during that period, then the fee payable to Putnam Management for that period will be reduced by the amount of the excess (but not more than the effective management fees rate under the contract multiplied by the liquidation preference of the remarketed preferred shares outstanding during the period). For the reporting period, Putnam Management did not reimburse monies to the fund.
Putnam Investments Limited (PIL), an affiliate of Putnam Management, is authorized by the Trustees to manage a separate portion of the assets of the fund as determined by Putnam Management from time to time. PIL did not manage any portion of the assets of the fund during the reporting period. If Putnam Management were to engage the services of PIL, Putnam Management would pay a quarterly sub-management fee to PIL for its services at an annual rate of 0.40% of the average net assets of the portion of the fund managed by PIL.
The fund reimburses Putnam Management an allocated amount for the compensation and related expenses of certain officers of the fund and their staff who provide administrative services to the fund. The aggregate amount of all such reimbursements is determined annually by the Trustees.
Custodial functions for the fund’s assets are provided by State Street. Custody fees are based on the fund’s asset level, the number of its security holdings and transaction volumes.
Putnam Investor Services, Inc., an affiliate of Putnam Management, provides investor servicing agent functions to the fund. Putnam Investor Services, Inc. was paid a monthly fee for investor servicing at an annual rate of 0.05% of the fund’s average daily net assets. The amounts incurred for investor servicing agent functions during the reporting period are included in Investor servicing fees in the Statement of operations.
The fund has entered into expense offset arrangements with Putnam Investor Services, Inc. and State Street whereby Putnam Investor Services, Inc.’s and State Street’s fees are reduced by credits allowed on cash balances. For the reporting period, the fund’s expenses were reduced by $308 under the expense offset arrangements.
Each Independent Trustee of the fund receives an annual Trustee fee, of which $269, as a quarterly retainer, has been allocated to the fund, and an additional fee for each Trustees meeting attended. Trustees also are reimbursed for expenses they incur relating to their services as Trustees.
The fund has adopted a Trustee Fee Deferral Plan (the Deferral Plan) which allows the Trustees to defer the receipt of all or a portion of Trustees fees payable on or after July 1, 1995. The deferred fees remain invested in certain Putnam funds until distribution in accordance with the Deferral Plan.
The fund has adopted an unfunded noncontributory defined benefit pension plan (the Pension Plan) covering all Trustees of the fund who have served as a Trustee for at least five years and were first elected prior to 2004. Benefits under the Pension Plan are equal to 50% of the Trustee’s average annual attendance and retainer fees for the three years ended December 31, 2005. The retirement benefit is payable during a Trustee’s lifetime, beginning the year following retirement, for the number of years of service through December 31, 2006. Pension expense for the fund is included in Trustee compensation and expenses in the Statement of operations. Accrued pension liability is included in Payable for Trustee compensation and expenses in the Statement of assets and liabilities. The Trustees have terminated the Pension Plan with respect to any Trustee first elected after 2003.
| 48 Managed Municipal Income Trust |
Note 3: Purchases and sales of securities
During the reporting period, the cost of purchases and the proceeds from sales, excluding short-term investments, were as follows:
| Cost of purchases | Proceeds from sales | |
| Investments in securities (Long-term) | $46,814,089 | $59,870,396 |
| U.S. government securities (Long-term) | — | — |
| Total | $46,814,089 | $59,870,396 |
The fund may purchase or sell investments from or to other Putnam funds in the ordinary course of business, which can reduce the fund’s transaction costs, at prices determined in accordance with SEC requirements and policies approved by the Trustees. During the reporting period, purchases or sales of long-term securities from or to other Putnam funds, if any, did not represent more than 5% of the fund’s total cost of purchases and/or total proceeds from sales.
Note 4: Preferred shares
The Series A (240) and C (1,507) Remarketed Preferred shares are redeemable at the option of the fund on any dividend payment date at a redemption price of $100,000 per Series A Remarketed Preferred share and $50,000 per Series C Remarketed Preferred share, plus an amount equal to any dividends accumulated on a daily basis but unpaid through the redemption date (whether or not such dividends have been declared) and, in certain circumstances, a call premium.
It is anticipated that dividends paid to holders of remarketed preferred shares will be considered tax-exempt dividends under the Internal Revenue Code of 1986. To the extent that the fund earns taxable income and capital gains by the conclusion of a fiscal year, it may be required to apportion to the holders of the remarketed preferred shares throughout that year additional dividends as necessary to result in an after-tax equivalent to the applicable dividend rate for the period.
Under the Investment Company Act of 1940, the fund is required to maintain asset coverage of at least 200% with respect to the remarketed preferred shares. Additionally, the fund’s bylaws impose more stringent asset coverage requirements and restrictions relating to the rating of the remarketed preferred shares by the shares’ rating agencies. Should these requirements not be met, or should dividends accrued on the remarketed preferred shares not be paid, the fund may be restricted in its ability to declare dividends to common shareholders or may be required to redeem certain of the remarketed preferred shares. At April 30, 2021, no such restrictions have been placed on the fund.
Note 5: Shares repurchased
In September 2020, the Trustees approved the renewal of the repurchase program to allow the fund to repurchase up to 10% of its outstanding common shares over the 365 day period ending September 30, 2021 (based on shares outstanding as of September 30, 2020). Prior to this renewal, the Trustees had approved a repurchase program to allow the fund to repurchase up to 10% of its outstanding common shares over the 356 day period ending September 30, 2020 (based on shares outstanding as of October 9, 2019). Repurchases are made when the fund’s shares are trading at less than net asset value and in accordance with procedures approved by the fund’s Trustees. At Putnam’s recommendation, the share repurchase program was temporarily suspended on March 24, 2020 and reinstated July 1, 2020.
For the reporting period, the fund did not repurchase any shares.
For the previous fiscal year, the fund repurchased 324,184 common shares for an aggregate purchase price of $2,159,037, which reflected a weighted-average discount from net asset value per share of 10.58%. The weighted-average discount reflected the payment of commissions by the fund to execute repurchase trades.
At the close of the reporting period, Putnam Investments, LLC owned approximately 1,766 shares of the fund (0.003% of the fund’s shares outstanding), valued at $14,675 based on net asset value.
| Managed Municipal Income Trust 49 |
Note 6: Affiliated transactions
Transactions during the reporting period with any company which is under common ownership or control were as follows:
| Shares | |||||
| outstanding | |||||
| and fair | |||||
| Fair value as | Purchase | Sale | Investment | value as | |
| Name of affiliate | of 10/31/20 | cost | proceeds | income | of 4/30/21 |
| Short-term investments | |||||
| Putnam Short Term | |||||
| Investment Fund* | $10,850,879 | $49,853,534 | $46,445,975 | $14,732 | $14,258,438 |
| Total Short-term | |||||
| investments | $10,850,879 | $49,853,534 | $46,445,975 | $14,732 | $14,258,438 |
* Management fees charged to Putnam Short Term Investment Fund have been waived by Putnam Management. There were no realized or unrealized gains or losses during the period.
Note 7: Market, credit and other risks
In the normal course of business, the fund trades financial instruments and enters into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the contracting party to the transaction to perform (credit risk). The fund may be exposed to additional credit risk that an institution or other entity with which the fund has unsettled or open transactions will default. The fund may invest in higher-yielding, lower-rated bonds that may have a higher rate of default.
On July 27, 2017, the United Kingdom’s Financial Conduct Authority (“FCA”), which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. In November 2020, this date was extended until June 30, 2023 for certain widely followed tenors (overnight and 1-, 3-, 6-, and 12-month U.S. dollar LIBOR). LIBOR has historically been a common benchmark interest rate index used to make adjustments to variable-rate loans. It is used throughout global banking and financial industries to determine interest rates for a variety of financial instruments and borrowing arrangements. The transition process might lead to increased volatility and illiquidity in markets that currently rely on LIBOR to determine interest rates. It could also lead to a reduction in the value of some LIBOR-based investments and reduce the effectiveness of new hedges placed against existing LIBOR-based investments. While some LIBOR-based instruments may contemplate a scenario where LIBOR is no longer available by providing for an alternative rate-setting methodology, not all may have such provisions and there may be significant uncertainty regarding the effectiveness of any such alternative methodologies. Since the usefulness of LIBOR as a benchmark could deteriorate during the transition period, these effects could occur prior to June 30, 2023.
Beginning in January 2020, global financial markets have experienced, and may continue to experience, significant volatility resulting from the spread of a virus known as Covid–19. The outbreak of Covid–19 has resulted in travel and border restrictions, quarantines, supply chain disruptions, lower consumer demand, and general market uncertainty. The effects of Covid–19 have adversely affected, and may continue to adversely affect, the global economy, the economies of certain nations, and individual issuers, all of which may negatively impact the fund’s performance.
Note 8: Summary of derivative activity
The volume of activity for the reporting period for any derivative type that was held during the period is listed below and was based on an average of the holdings at the end of each fiscal quarter:
| Futures contracts (number of contracts) | 100 |
| OTC total return swap contracts (notional) | $22,400,000 |
| Centrally cleared total return swap contracts (notional) | $9,900,000 |
| 50 Managed Municipal Income Trust |
The following is a summary of the fair value of derivative instruments as of the close of the reporting period:
| Fair value of derivative instruments as of the close of the reporting period | ||||
| ASSET DERIVATIVES | LIABILITY DERIVATIVES | |||
| Derivatives not | ||||
| accounted for as | Statement of | Statement of | ||
| hedging instruments | assets and | assets and | ||
| under ASC 815 | liabilities location | Fair value | liabilities location | Fair value |
| Interest rate contracts | Receivables | $75,701* | Payables | $251,636* |
| Total | $75,701 | $251,636 | ||
* Includes cumulative appreciation/depreciation of futures contracts and/or centrally cleared swaps as reported in the fund’s portfolio. Only current day’s variation margin is reported within the Statement of assets and liabilities.
The following is a summary of realized and change in unrealized gains or losses of derivative instruments in the Statement of operations for the reporting period (Note 1):
| Amount of realized gain or (loss) on derivatives recognized in net gain or (loss) on investments | |||
| Derivatives not accounted for as hedging | |||
| instruments under ASC 815 | Futures | Swaps | Total |
| Interest rate contracts | $190,140 | $150,478 | $340,618 |
| Total | $190,140 | $150,478 | $340,618 |
| Change in unrealized appreciation or (depreciation) on derivatives recognized in net gain or (loss) | |||
| on investments | |||
| Derivatives not accounted for as hedging | |||
| instruments under ASC 815 | Futures | Swaps | Total |
| Interest rate contracts | (54,430) | (131,455) | $(185,885) |
| Total | $(54,430) | $(131,455) | $(185,885) |
| Managed Municipal Income Trust 51 |
Note 9: Offsetting of financial and derivative assets and liabilities
The following table summarizes any derivatives, repurchase agreements and reverse repurchase agreements, at the end of the reporting period, that are subject to an enforceable master netting agreement or similar agreement. For securities lending transactions or borrowing transactions associated with securities sold short, if any, see Note 1. For financial reporting purposes, the fund does not offset financial assets and financial liabilities that are subject to the master netting agreements in the Statement of assets and liabilities.
| Credit Suisse | |||||
| Securities | Morgan | ||||
| (USA), LLC | Stanley & Co. | ||||
| (clearing | JPMorgan | International | |||
| Citibank, N.A. | broker) | Securities LLC | PLC | Total | |
| Assets: | |||||
| OTC Total return swap contracts*# | $38,228 | $— | $— | $23,676 | $61,904 |
| Centrally cleared total return | — | — | — | — | — |
| swap contracts§ | |||||
| Futures contracts§ | — | — | — | — | — |
| Total Assets | $38,228 | $— | $— | $23,676 | $61,904 |
| Liabilities: | |||||
| OTC Total return swap contracts*# | 21,780 | — | — | 225 | 22,005 |
| Centrally cleared total return | — | 388 | — | — | 388 |
| swap contracts§ | |||||
| Futures contracts§ | — | — | 8,887 | — | 8,887 |
| Total Liabilities | $21,780 | $388 | $8,887 | $225 | $31,280 |
| Total Financial and Derivative Net | $16,448 | $(388) | $(8,887) | $23,451 | $30,624 |
| Assets | |||||
| Total collateral received (pledged)†## | $— | $— | $— | $— | |
| Net amount | $16,448 | $(388) | $(8,887) | $23,451 | |
| Controlled collateral received (including | |||||
| TBA commitments)** | $— | $— | $— | $— | $— |
| Uncontrolled collateral received | $— | $— | $— | $— | $— |
| Collateral (pledged) (including | |||||
| TBA commitments)** | $— | $— | $— | $— | $— |
* Excludes premiums, if any. Included in unrealized appreciation and depreciation on OTC swap contracts on the Statement of assets and liabilities.
** Included with Investments in securities on the Statement of assets and liabilities.
† Additional collateral may be required from certain brokers based on individual agreements.
# Covered by master netting agreement (Note 1).
##Any over-collateralization of total financial and derivative net assets is not shown. Collateral may include amounts related to unsettled agreements.
§ Includes current day’s variation margin only as reported on the Statement of assets and liabilities, which is not collateralized. Cumulative appreciation/(depreciation) for futures contracts and centrally cleared swap contracts is represented in the tables listed after the fund’s portfolio. Collateral pledged for initial margin on futures contracts and centrally cleared swap contracts, which is not included in the table above, amounted to $187,000 and $585,000, respectively.
| 52 Managed Municipal Income Trust |
Note 10: New accounting pronouncements
In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020–04, Reference Rate Reform (Topic 848) — Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in ASU 2020–04 provide optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of LIBOR and other interbank-offered based reference rates as of the end of 2021. The discontinuation of LIBOR was subsequently extended to June 30, 2023. ASU 2020–04 is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management is currently evaluating the impact, if any, of applying this provision.
| Managed Municipal Income Trust 53 |
Shareholder meeting results (Unaudited)
April 20, 2021 annual meeting
At the meeting, a proposal to fix the number of Trustees at 11 was approved as follows:
| Votes for | Votes against | Abstentions |
| 35,865,057 | 971,917 | 685,074 |
At the meeting, each of the nominees for Trustees was elected as follows:
| Votes for | Votes withheld | |
| Liaquat Ahamed | 36,461,576 | 1,060,477 |
| Ravi Akhoury | 36,441,125 | 1,080,928 |
| Barbara M. Baumann | 31,850,873 | 5,671,180 |
| Catharine Bond Hill | 36,606,402 | 915,651 |
| Paul L. Joskow | 31,297,660 | 6,226,393 |
| Kenneth R. Leibler | 31,641,026 | 5,881,027 |
| Robert L. Reynolds | 36,619,180 | 902,873 |
| Manoj Singh | 36,528,225 | 993,828 |
| Mona K. Sutphen | 36,297,727 | 1,224,326 |
At the meeting, each of the preferred nominees for Trustees was elected as follows:
| Votes for | Votes withheld | |
| Katinka Domotorffy | 1,661 | — |
| George Putnam, III | 1,661 | — |
All tabulations are rounded to the nearest whole number.
| 54 Managed Municipal Income Trust |
Putnam family of funds
The following is a list of Putnam’s open-end mutual funds offered to the public. Investors should carefully consider the investment objective, risks, charges, and expenses of a fund before investing. For a prospectus, or a summary prospectus if available, containing this and other information for any Putnam fund or product, contact your financial advisor or call Putnam Investor Services at 1-800-225-1581. Please read the prospectus carefully before investing.
| Blend | Income |
| Emerging Markets Equity Fund | Convertible Securities Fund |
| Focused Equity Fund | Diversified Income Trust |
| Focused International Equity Fund | Floating Rate Income Fund |
| International Capital Opportunities Fund | Global Income Trust |
| International Equity Fund | Government Money Market Fund* |
| Multi-Cap Core Fund | High Yield Fund |
| Research Fund | Income Fund |
| Money Market Fund† | |
| Global Sector | Mortgage Opportunities Fund |
| Global Health Care Fund | Mortgage Securities Fund |
| Global Technology Fund | Short Duration Bond Fund |
| Ultra Short Duration Income Fund | |
| Growth | |
| Growth Opportunities Fund | Tax-free Income |
| Small Cap Growth Fund | Intermediate-Term Municipal Income Fund |
| Sustainable Future Fund | Short-Term Municipal Income Fund |
| Sustainable Leaders Fund | Strategic Intermediate Municipal Fund |
| Tax Exempt Income Fund | |
| Value | Tax-Free High Yield Fund |
| International Value Fund | |
| Large Cap Value Fund | State tax-free income funds‡: |
| Small Cap Value Fund | California, Massachusetts, Minnesota, |
| New Jersey, New York, Ohio, and Pennsylvania. |
| Managed Municipal Income Trust 55 |
| Absolute Return | Asset Allocation (cont.) |
| Fixed Income Absolute Return Fund | Putnam Retirement Advantage Maturity Fund |
| Multi-Asset Absolute Return Fund | Putnam Retirement Advantage 2065 Fund |
| Putnam Retirement Advantage 2060 Fund | |
| Putnam PanAgora§ | Putnam Retirement Advantage 2055 Fund |
| Putnam PanAgora Risk Parity Fund | Putnam Retirement Advantage 2050 Fund |
| Putnam Retirement Advantage 2045 Fund | |
| Asset Allocation | Putnam Retirement Advantage 2040 Fund |
| Dynamic Risk Allocation Fund | Putnam Retirement Advantage 2035 Fund |
| George Putnam Balanced Fund | Putnam Retirement Advantage 2030 Fund |
| Putnam Retirement Advantage 2025 Fund | |
| Dynamic Asset Allocation Balanced Fund | |
| Dynamic Asset Allocation Conservative Fund | RetirementReady® Maturity Fund |
| Dynamic Asset Allocation Growth Fund | RetirementReady® 2065 Fund |
| RetirementReady® 2060 Fund | |
| RetirementReady® 2055 Fund | |
| RetirementReady® 2050 Fund | |
| RetirementReady® 2045 Fund | |
| RetirementReady® 2040 Fund | |
| RetirementReady® 2035 Fund | |
| RetirementReady® 2030 Fund | |
| RetirementReady® 2025 Fund |
* You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.
† You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.
‡ Not available in all states.
§ Sub-advised by PanAgora Asset Management.
Check your account balances and the most recent month-end performance in the Individual Investors section at putnam.com.
| 56 Managed Municipal Income Trust |
Fund information
Founded over 80 years ago, Putnam Investments was built around the concept that a balance between risk and reward is the hallmark of a well-rounded financial program. We manage funds across income, value, blend, growth, sustainable, asset allocation, absolute return, and global sector categories.
| Investment Manager | Trustees | Michael J. Higgins |
| Putnam Investment | Kenneth R. Leibler, Chair | Vice President, Treasurer, |
| Management, LLC | Liaquat Ahamed | and Clerk |
| 100 Federal Street | Ravi Akhoury | |
| Boston, MA 02110 | Barbara M. Baumann | Jonathan S. Horwitz |
| Katinka Domotorffy | Executive Vice President, | |
| Investment Sub-Advisor | Catharine Bond Hill | Principal Executive Officer, |
| Putnam Investments Limited | Paul L. Joskow | and Compliance Liaison |
| 16 St James’s Street | George Putnam, III | |
| London, England SW1A 1ER | Robert L. Reynolds | Richard T. Kircher |
| Manoj P. Singh | Vice President and BSA | |
| Marketing Services | Mona K. Sutphen | Compliance Officer |
| Putnam Retail Management | ||
| 100 Federal Street | Officers | Susan G. Malloy |
| Boston, MA 02110 | Robert L. Reynolds | Vice President and |
| President | Assistant Treasurer | |
| Custodian | ||
| State Street Bank | Robert T. Burns | Denere P. Poulack |
| and Trust Company | Vice President and | Assistant Vice President, Assistant |
| Chief Legal Officer | Clerk, and Assistant Treasurer | |
| Legal Counsel | ||
| Ropes & Gray LLP | James F. Clark | Janet C. Smith |
| Vice President, Chief Compliance | Vice President, | |
| Officer, and Chief Risk Officer | Principal Financial Officer, | |
| Principal Accounting Officer, | ||
| Nancy E. Florek | and Assistant Treasurer | |
| Vice President, Director of | ||
| Proxy Voting and Corporate | Mark C. Trenchard | |
| Governance, Assistant Clerk, | Vice President | |
| and Assistant Treasurer |
Call 1-800-225-1581 Monday through Friday between 8:00 a.m. and 8:00 p.m. Eastern Time, or visit putnam.com anytime for up-to-date information about the fund’s NAV.
| Item 2. Code of Ethics: |
| Not Applicable |
| Item 3. Audit Committee Financial Expert: |
| Not Applicable |
| Item 4. Principal Accountant Fees and Services: |
| Not Applicable |
| Item 5. Audit Committee |
| Not Applicable |
| Item 6. Schedule of Investments: |
| The registrant's schedule of investments in unaffiliated issuers is included in the report to shareholders in Item 1 above. |
| Item 7. Disclosure of Proxy Voting Policies and Procedures For Closed-End Management Investment Companies: |
| Not applicable |
| Item 8. Portfolio Managers of Closed-End Management Investment Companies |
| (a) Not applicable |
| (b) There have been no changes to the list of the registrant's identified portfolio managers included in the registrant's report on Form N-CSR for the most recent completed fiscal year. |
| Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers: |
| Registrant Purchase of Equity Securities |
| Maximum | |||||
| Total Number | Number (or | ||||
| of Shares | Approximate | ||||
| Purchased | Dollar Value) | ||||
| as Part | of Shares | ||||
| of Publicly | that May Yet Be | ||||
| Total Number | Average | Announced | Purchased | ||
| of Shares | Price Paid | Plans or | under the Plans | ||
| Period | Purchased | per Share | Programs* | or Programs** | |
| November 1 — November 30, 2020 | — | — | — | 4,888,000 | |
| December 1 — December 31, 2020 | — | — | — | 4,888,000 | |
| January 1 — January 31, 2021 | — | — | — | 4,888,000 | |
| February 1 — February 28, 2021 | — | — | — | 4,888,000 | |
| March 1 — March 31, 2021 | — | — | — | 4,888,000 | |
| April 1 — April 30, 2021 | — | — | — | 4,888,000 | |
| * In October 2005, the Board of Trustees of the Putnam Funds initiated the closed-end fund share repurchase program, which, as subsequently amended, authorized the fund to repurchase of up to 10% of its fund's outstanding common shares over the two-years ending October 5, 2007. The Trustees have subsequently renewed the program on an annual basis. The program renewed by the Board in September 2019, which was in effect between October 10, 2019 and September 30, 2020, allowed the fund to repurchase up to 4,920,418 of its shares. The program renewed by the Board in September 2020, which is in effect between October 1, 2020 and September 30, 2021, allows the fund to repurchase up to 4,880,000 of its shares. |
| ** Information prior to October 1, 2020 is based on the total number of shares eligible for repurchase under the program, as amended through September 2019. Information from October 1, 2020 forward is based on the total number of shares eligible for repurchase under the program, as amended through September 2020. |
| Item 10. Submission of Matters to a Vote of Security Holders: |
| Not applicable |
| Item 11. Controls and Procedures: |
| (a) The registrant's principal executive officer and principal financial officer have concluded, based on their evaluation of the effectiveness of the design and operation of the registrant's disclosure controls and procedures as of a date within 180 days of the filing date of this report, that the design and operation of such procedures are generally effective to provide reasonable assurance that information required to be disclosed by the registrant in this report is recorded, processed, summarized and reported within the time periods specified in the Commission's rules and forms. |
| (b) Changes in internal control over financial reporting: Not applicable |
| Item 12. Disclosures of Securities Lending Activities for Closed-End Investment Companies: |
| Not Applicable |
| Item 13. Exhibits: |
| (a)(1) Not applicable |
| (a)(3) 19(a) Notices to Beneficial Owners are filed herewith. |
| (b) The certifications required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended, are filed herewith. |
| 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. |
| Putnam Managed Municipal Income Trust |
| By (Signature and Title): |
| /s/ Janet C. Smith Janet C. Smith Principal Accounting Officer |
| Date: June 28, 2021 |
| 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 (Signature and Title): |
| /s/ Jonathan S. Horwitz Jonathan S. Horwitz Principal Executive Officer |
| Date: June 28, 2021 |
| By (Signature and Title): |
| /s/ Janet C. Smith Janet C. Smith Principal Financial Officer |
| Date: June 28, 2021 |
