-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GzE+Zo8Z8xlW90ZbmE/ee0+uSN5geZDnVfvZ/Qu34W/zkiNN9OSXp05jvUcurhiA KnGEavJFP1JzWxlMCvpohg== 0000950123-08-011584.txt : 20080929 0000950123-08-011584.hdr.sgml : 20080929 20080929093740 ACCESSION NUMBER: 0000950123-08-011584 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20080731 FILED AS OF DATE: 20080929 DATE AS OF CHANGE: 20080929 EFFECTIVENESS DATE: 20080929 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MORGAN STANLEY QUALITY MUNICIPAL INCOME TRUST CENTRAL INDEX KEY: 0000885125 IRS NUMBER: 136993836 STATE OF INCORPORATION: MA FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-06591 FILM NUMBER: 081092592 BUSINESS ADDRESS: STREET 1: 522 FIFTH AVENUE CITY: NEW YORK STATE: NY ZIP: 10036 BUSINESS PHONE: 800-869-6397 MAIL ADDRESS: STREET 1: 522 FIFTH AVENUE CITY: NEW YORK STATE: NY ZIP: 10036 FORMER COMPANY: FORMER CONFORMED NAME: MORGAN STANLEY DEAN WITTER QUALITY MUNICIPAL INCOME TRUST DATE OF NAME CHANGE: 19981221 FORMER COMPANY: FORMER CONFORMED NAME: INTERCAPITAL QUALITY MUNICIPAL INCOME TRUST DATE OF NAME CHANGE: 19920929 FORMER COMPANY: FORMER CONFORMED NAME: INTERCAPITAL QUALITY MUNICIPAL INVESTMENT TRUST II DATE OF NAME CHANGE: 19600201 N-Q 1 y00206nvq.htm FORM N-Q FORM N-Q
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number: 811-06591
Morgan Stanley Quality Municipal Income Trust
(Exact name of registrant as specified in charter)
     
522 Fifth Avenue, New York, New York   10036
(Address of principal executive offices)   (Zip code)
Randy Takian
522 Fifth Avenue, New York, New York 10036
(Name and address of agent for service)
Registrant’s telephone number, including area code: 212-296-6990
Date of fiscal year end: October 31, 2008
Date of reporting period: July 31, 2008
TABLE OF CONTENTS

Item 1. Schedule of Investments
Item 2. Controls and Procedures
Item 3. Exhibits
SIGNATURES
 
 
Item 1. Schedule of Investments.
The Trust’s schedule of investments as of the close of the reporting period prepared pursuant to Rule 12-12 of Regulation S-X is as follows:

 


 

Morgan Stanley Quality Municipal Income Trust
Portfolio of Investments July 31, 2008 (unaudited)
                                 
PRINCIPAL                        
AMOUNT IN         COUPON     MATURITY        
THOUSANDS         RATE     DATE     VALUE  
       
Tax-Exempt Municipal Bonds (170.0%)
                       
       
Alabama (1.2%)
                       
$ 3,700    
University of Alabama, Ser 2004-A (MBIA Insd)
    5.25 %     07/01/22     $ 3,860,173  
       
 
                     
       
 
                       
       
Alaska (0.9%)
                       
  4,000    
Northern Tobacco Securitization Corporation, Asset Backed Ser 2006 A
    5.00       06/01/46       2,834,440  
       
 
                     
       
 
                       
       
Arizona (5.3%)
                       
  2,000    
Arizona Transportation Board, Highway Refg Ser 2002 A
    5.25       07/01/19       2,149,780  
  3,000    
Phoenix Civic Improvement Corporation, Airport Ser 2002 B (AMT) (FGIC Insd)
    5.25       07/01/32       2,787,840  
  3,800    
Phoenix Civic Improvement Corporation, Jr Lien Water Ser 2002 (FGIC Insd)
    5.00       07/01/26       3,844,270  
  6,000    
Salt River Project Agricultural Improvement & Power District, 2002 Ser B (a)
    5.00       01/01/31       6,089,550  
  2,000    
Surprise Municipal Property Corporation Ser 2007
    4.90       04/01/32       1,734,340  
       
 
                     
       
 
                    16,605,780  
       
 
                     
       
California (30.3%)
                       
  2,000    
California Health Facilities Financing Authority, Cedars-Sinai Medical Center Ser 2005
    5.00       11/15/34       1,890,880  
  2,000    
California Health Facilities Financing Authority, Kaiser Permanente Ser 2006 A
    5.25       04/01/39       1,892,220  
  3,000    
California Infrastructure & Economic Development Bank, The Scripps Research Institute Ser 2005 A
    5.00       07/01/29       3,038,370  
  5,000    
California Infrastructure & Economic Development Bank, The Scripps Research Institute Ser 2005 A (a)
    5.00       01/01/28 (b)     5,338,000  
  6,000    
California Pollution Control Financing Authority, Keller Canyon Landfill Co/Browning-Ferris Industries Inc Ser 1992 (AMT)
    6.875       11/01/27       5,916,720  
  10,000    
California State Economic Recovery Ser 2004 A (a)
    5.00       07/01/16       10,525,700  
  5,000    
California Statewide Communities Development, John Muir Health Ser 2006 A
    5.00       08/15/32       4,668,699  
  4,000    
California Statewide Communities Development, Baptist University Ser 2007 A
    5.40       11/01/27       3,632,360  
  5,000    
California, Various Purpose Dtd 05/01/03
    5.25       02/01/19       5,199,600  
  16,000    
California, Various Purpose Dtd 11/01/06 (a)
    4.50       10/01/36       14,180,160  
  6,000    
Golden State Tobacco Securitization Corporation, Enhanced Asset Backed Ser 2005 A (AMBAC Insd)
    5.00       06/01/29       5,665,740  
  4,000    
Golden State Tobacco Securitization Corporation, Enhanced Asset Backed Ser 2007 A
    5.75       06/01/47       3,285,200  
  8,000    
Golden State Tobacco Securitization Corporation, Enhanced Asset Backed Ser 2007 A-1
    5.125       06/01/47       5,905,759  
  4,000    
Los Angeles Ser 2004 A (MBIA Insd)
    5.00       09/01/24       4,111,680  
  4,000    
Port of Oakland Ser 2002 L (AMT) (FGIC Insd)
    5.00       11/01/32       3,600,200  
  3,720    
San Diego County Water Authority Ser 2002 A COPs (MBIA Insd)
    5.00       05/01/27       3,765,161  
  1,000    
San Diego County, Burnham Institute for Medical Research Ser 2006 COPs
    5.00       09/01/34       874,280  
  960    
San Francisco City and County, Laguna Honda Hospital Ser 2008 R3 (AGC Insd) (a)
    5.00       06/15/28       969,955  
  16,000    
Silicon Valley Tobacco Securitization Authority Tobacco Settlement, Santa Clara Tobacco Securitization Corp Ser 2007
    0.00       06/01/36       1,774,080  
  5,000    
Tobacco Securitization Authority of Northern California, Sacramento County Tobacco Securitization Corporation Ser 2006 A-1
    5.00       06/01/37       3,713,600  
  2,760    
University of California Ser 2007-J (FSA Insd) (a)
    4.50       05/15/31       2,676,145  
  2,240    
University of California Ser 2007-J (FSA Insd) (a)
    4.50       05/15/35       2,145,919  
       
 
                     
       
 
                    94,770,428  
       
 
                     
       
Colorado (2.9%)
                       
  1,750    
Boulder County, University Corp for Atmospheric Research Ser 2002 (MBIA Insd)
    5.375       09/01/18       1,840,773  
  1,750    
Boulder County, University Corp for Atmospheric Research Ser 2002 (MBIA Insd)
    5.375       09/01/21       1,822,555  
  2,000    
Colorado Educational & Cultural Facilities Authority, Peak to Peak Charter School Refg & Impr Ser 2004 (XLCA Insd)
    5.25       08/15/34       1,915,180  
  2,000    
Colorado Health Facilities Authority, Adventist/Sunbelt Ser 2006 D
    5.25       11/15/35       1,902,520  
  1,590    
Denver Convention Center Hotel Authority Refg Ser 2006 (XLCA Insd)
    5.00       12/01/30       1,362,535  

 


 

                                 
PRINCIPAL                        
AMOUNT IN         COUPON     MATURITY        
THOUSANDS         RATE     DATE     VALUE  
  265    
Public Authority For Colorado Energy Ser 2008
    6.25       11/15/28       259,016  
       
 
                     
       
 
                    9,102,579  
       
 
                     
       
Connecticut (1.4%)
                       
  5,000    
Connecticut Housing Finance Authority, SubSer A-2 (AMT)
    5.15       05/15/38       4,413,550  
       
 
                     
       
 
                       
       
Delaware (0.3%)
                       
  1,000    
New Castle County, Newark Charter School Inc Ser 2006
    5.00       09/01/36       823,520  
       
 
                     
       
 
                       
       
District of Columbia (1.8%)
                       
  6,000    
District of Columbia Ballpark Ser 2006 B-1 (FGIC Insd)
    5.00       02/01/31       5,513,940  
       
 
                     
       
 
                       
       
Florida (7.8%)
                       
  2,000    
Broward County School Board Ser 2001 A COPs (FSA Insd)
    5.00       07/01/26       1,995,220  
  3,500    
Broward County Water & Sewer Utility Ser 2003 (MBIA Insd)
    5.00       10/01/24       3,571,575  
  3,000    
Highlands County Health Facilities Authority, Adventist Health/Sunbelt Ser 2006 C
    5.25       11/15/36       2,863,800  
  3,300    
Jacksonville Electric Authority, St Johns Power Park Refg Issue 2 Ser 17
    5.00       10/01/18       3,433,419  
  1,500    
Lee County Industrial Development Authority, Shell Point Village/ The Alliance Community for Retirement Living Inc, Ser 2006
    5.125       11/15/36       1,218,030  
  3,000    
South Miami Health Facilities Authority, Baptist Health South Florida Ser 2007 (a)
    5.00       08/15/42       11,418,180  
       
 
                     
       
 
                    24,500,224  
       
 
                     
       
Georgia (3.9%)
                       
  3,000    
Atlanta, Airport Ser 2004 J (FSA Insd)
    5.00       01/01/34       2,949,000  
  6,000    
Georgia State Road & Tollway Authority Ser 2004
    5.00       10/01/22       6,198,840  
  3,000    
Georgia State Road & Tollway Authority Ser 2004
    5.00       10/01/23       3,084,420  
       
 
                     
       
 
                    12,232,260  
       
 
                     
       
Hawaii (6.1%)
                       
  8,000    
Hawaii, 1992 Ser BZ
    6.00       10/01/11       8,777,920  
  10,000    
Honolulu City & County Ser 2003 A (MBIA Insd) (a)
    5.25       03/01/26       10,266,750  
       
 
                     
       
 
                    19,044,670  
       
 
                     
       
Idaho (1.2%)
                       
  90    
Idaho Housing Agency, 1992 Ser E (AMT)
    6.75       07/01/12       91,668  
  835    
Idaho Housing & Finance Association, 2000 Ser E (AMT)
    6.00       01/01/32       858,104  
  2,600    
Idaho Housing & Finance Association 2008 Ser A
    5.25       07/15/23       2,787,382  
       
 
                     
       
 
                    3,737,154  
       
 
                     
       
Illinois (5.3%)
                       
  4,000    
Chicago, O’ Hare Int’l Airport Third Lien Ser 2003 B-2 (AMT) (FSA Insd)
5.75       01/01/23       4,040,480  
  4,000    
Cook County Ser 1992 C (FGIC Insd)
    6.00       11/15/09       4,201,960  
  6,000    
Illinois, First Ser 2002 (MBIA Insd)
5.375       07/01/20       6,339,600  
  2,000    
Schaumburg Ser 2004 B (FGIC Insd)
    5.25       12/01/34       2,020,220  
       
 
                     
       
 
                    16,602,260  
       
 
                     
       
Indiana (5.5%)
                       
  10,000    
Indiana Bond Bank, Revolving Fund Ser 2001 A
    5.00       02/01/23       10,251,000  
  6,000    
Indiana Health & Educational Facility Financing Authority, Clarian Health Ser 2006 A
    5.25       02/15/40       5,557,200  
  1,400    
Marion County Convention & Recreational Facilities Authority, Refg Ser 2003 A (AMBAC Insd)
    5.00       06/01/21       1,432,158  
       
 
                     
       
 
                    17,240,358  
       
 
                     
       
Kansas (0.8%)
                       
  3,000    
University of Kansas Hospital Authority, KU Health Ser 2002
    4.50       09/01/32       2,555,850  
       
 
                     
       
 
                       
       
Kentucky (1.6%)
                       
  5,000    
Louisville & Jefferson County Metropolitan Sewer District, Ser 1999 A (FGIC Insd)
    5.75       05/15/33       5,128,400  
       
 
                     
       
 
                       
       
Maryland (3.3%)
                       
  2,000    
Baltimore County, Oak Crest Village Ser 2007 A
    5.00       01/01/37       1,786,020  
  3,000    
Maryland Health & Higher Educational Facilities Authority, King Farm Presbyterian Community 2006 Ser B
    5.00       01/01/17       2,818,020  
  1,500    
Maryland Health & Higher Educational Facilities Authority, University of Maryland Medical Ser 2002
    6.00       07/01/12 (b)     1,657,185  
  2,000    
Maryland Health & Higher Educational Facilities Authority, University of Maryland Medical Ser 2006 A
    5.00       07/01/41       1,883,260  
  2,000    
Northeast Maryland Waste Disposal Authority, Montgomery County Ser 2003 (AMT) (AMBAC Insd)
    5.50       04/01/16       2,050,880  
       
 
                     
       
 
                    10,195,365  
       
 
                     
       
Michigan (4.8%)
                       
  6,000    
Michigan Hospital Finance Authority, Henry Ford Health Refg Ser 2006 A
5.25       11/15/46       5,416,440  
  5,000    
Michigan Strategic Fund, Detroit Edison Co Ser 2001 C (AMT)
    5.65       09/01/29       4,628,800  
  3,000    
Wayne County, Detroit Metropolitan Wayne County Airport Refg Ser 2002 D (AMT) (FGIC Insd)
    5.50       12/01/17       2,994,120  

 


 

                                 
PRINCIPAL                        
AMOUNT IN         COUPON     MATURITY        
THOUSANDS         RATE     DATE     VALUE  
  1,855    
Wayne State University, Refg Ser 2008 (FSA Insd)
    5.00       11/15/25       1,905,957  
       
 
                     
       
 
                    14,945,317  
       
 
                     
       
Minnesota (0.6%)
                       
  2,000    
Western Minnesota Municipal Power Agency, 2003 Ser A (MBIA Insd)
    5.00       01/01/30       1,941,060  
       
 
                     
       
 
                       
       
Missouri (1.1%)
                       
  2,250    
Gravois Bluffs Transportation Development District, Sales Tax Ser 2007
    4.75       05/01/32       1,941,795  
  1,500    
Missouri Health & Educational Facilities Authority, Lutheran Senior Services Ser 2005 A
    5.375       02/01/35       1,350,750  
  180    
Missouri Housing Development Commission, Homeownership Ser 2000 B-1 (AMT)
    6.25       03/01/31       185,180  
       
 
                     
       
 
                    3,477,725  
       
 
                     
       
Montana (0.9%)
                       
  2,825    
Montana Board of Housing, 2000 Ser B (AMT)
    6.00       12/01/29       2,859,550  
       
 
                     
       
 
                       
       
Nevada (4.2%)
                       
  2,000    
Clark County, Airport SubLien Ser 2004 A-1 (AMT) (FGIC Insd)
    5.50       07/01/20       1,924,660  
  1,000    
Clark County, Jet Aviation Fuel Tax Ser 2003 C (AMT) (AMBAC Insd)
    5.375       07/01/19       973,010  
  1,100    
Clark County, Jet Aviation Fuel Tax Ser 2003 C (AMT) (AMBAC Insd)
    5.375       07/01/20       1,058,288  
  2,000    
Clark County, Jet Aviation Fuel Tax Ser 2003 C (AMT) (AMBAC Insd)
    5.375       07/01/22       1,887,560  
  5,345    
Las Vegas Valley Water District, Water Impr Refg Ser 2003 A (FGIC Insd)
    5.25       06/01/20       5,580,020  
  2,000    
Reno, Renown Regional Medical Center Ser 2007 A
    5.25       06/01/37       1,836,200  
       
 
                     
       
 
                    13,259,738  
       
 
                     
       
New Jersey (12.0%)
                       
  2,000    
New Jersey Economic Development Authority, Cigarette Tax Ser 2004
    5.75       06/15/29       1,879,680  
  1,565    
New Jersey Housing Mortgage Finance Authority, Home Buyer Ser 2000 CC (AMT) (MBIA Insd)
    5.875       10/01/31       1,604,125  
  5,000    
New Jersey Transportation Trust Fund Authority, 1999 Ser A
    5.75       06/15/20       5,645,950  
  12,000    
New Jersey Turnpike Authority, Ser 2003 A (FGIC Insd) (c)
    5.00       01/01/27       11,759,039  
  10,000    
Passaic Valley Sewerage Commissioners Ser F (FGIC Insd)
    5.00       12/01/20       10,038,300  
  5,000    
Tobacco Settlement Financing Corporation Ser 2007-1 A
    4.625       06/01/26       4,104,900  
  6,000    
Tobacco Settlement Financing Corporation Ser 2007-1 B
    0.00       06/01/41       445,320  
  2,000    
University of Medicine & Dentistry Ser 2004 COPs (MBIA Insd)
    5.25       06/15/23       2,014,940  
       
 
                     
       
 
                    37,492,254  
       
 
                     
       
New Mexico (1.0%)
                       
  3,000    
Rio Rancho, Water & Wastewater Refg Ser 1999 (AMBAC Insd)
    5.25       05/15/19       3,052,440  
       
 
                     
       
 
                       
       
New York (15.9%)
                       
  10,000    
Metropolitan Transportation Authority, Transportation Refg Ser 2002 A (FGIC Insd)
    5.00       11/15/25       9,907,900  
  5,000    
Nassau County Tobacco Settlement Corporation Ser 2006 A-3
    5.125       06/01/46       4,116,500  
  3,500    
New York City Municipal Water Finance Authority Ser A-2003
    5.375       06/15/19       3,706,290  
  18,000    
New York City Municipal Water Finance Authority 2002 Ser B (a)
    5.00       06/15/26       4,656,960  
  10,000    
New York City Municipal Water Finance Authority 2004 Ser A
    5.00       06/15/35       10,055,200  
  1,190    
New York City Trust for Cultural Resources, Museum of Modern Art Refg Ser 2008 1A (a)
    5.00       04/01/26       2,121,830  
  2,815    
New York City Trust for Cultural Resources, Museum of Modern Art Refg Ser 2008 1A (a)
    5.00       04/01/27       2,925,721  
  2,000    
Seneca Nation of Indians Ser 2007 A (d)
    5.00       12/01/23       1,720,960  
  5,000    
Tobacco Settlement Financing Corporation, State Contingency Ser 2003 B-1C
    5.50       06/01/17       5,162,150  
  5,000    
Triborough Bridge & Tunnel Authority Refg 2002 E (MBIA Insd) (a)
    5.25       11/15/22       5,199,575  
       
 
                     
       
 
                    49,573,086  
       
 
                     
       
North Carolina (1.5%)
                       
  4,500    
Charlotte, Water & Sewer Ser 2001
    5.125       06/01/26       4,609,215  
       
 
                     
       
 
                       
       
North Dakota (0.8%)
                       
  2,750    
Ward County, Trinity Ser 2006
    5.125       07/01/29       2,512,620  
       
 
                     
       
 
                       
       
Ohio (5.1%)
                       
  5,100    
American Municipal Power — Ohio, Inc. Ser 2008 A (AGC Insd) (a)
    5.25       02/15/33       5,141,769  
  5,370    
Cuyahoga County, Cleveland Clinic Ser 2003 A
    6.00       01/01/32       5,596,507  
  3,000    
Lorain County, Catholic Healthcare Partners Ser 2001 A
    5.625       10/01/17       3,127,410  
  2,000    
Ohio State University, General Receipts Ser 2002 A
    5.125       12/01/31       2,020,360  
       
 
                     
       
 
                    15,886,046  
       
 
                     
       
Oklahoma (0.4%)
                       
  1,500    
Oklahoma Development Finance Authority, Great Plains Medical Center Ser 2007
    5.125       12/01/36       1,285,905  
       
 
                     
       
 
                       
       
Pennsylvania (4.5%)
                       
  4,000    
Allegheny County Redevelopment Authority, West Penn Allegheny Health Ser 2007 A (a)
    5.375       11/15/40       3,189,869  

 


 

                                 
PRINCIPAL                        
AMOUNT IN         COUPON     MATURITY        
THOUSANDS         RATE     DATE     VALUE  
  10,000    
Pennsylvania, First Ser 2003 (MBIA Insd) (a)
    5.00       01/01/13 (b)     10,797,650  
       
 
                     
       
 
                    13,987,519  
       
 
                     
       
South Carolina (5.0%)
                       
  3,000    
Charleston Educational Excellence Financing Corporation, Charleston County School District Ser 2005
    5.25       12/01/29       3,028,860  
  70    
Lexington County Health Services District, Lexmed Inc, Ser 2007 A
    5.00       11/01/16       71,082  
  5,000    
South Carolina Public Service Authority, Refg Ser 2002 D (FSA Insd)
    5.00       01/01/20       5,145,150  
  7,000    
South Carolina Public Service Authority, Refg Ser 2003 A (AMBAC Insd)
    5.00       01/01/22       7,099,627  
  345    
Richland County, Environmental Improvement, International Paper Company Ser 2007 A
    4.60       09/01/12       335,054  
       
 
                     
       
 
                    15,679,773  
       
 
                     
       
Tennessee (3.1%)
                       
  2,000    
Sullivan County Health Educational & Housing Facilities Board, Wellmont Health Ser 2006 C
    5.25       09/01/36       1,775,200  
  8,000    
Tennessee Energy Acquisition Corporation Ser 2006 A
    5.25       09/01/19       7,794,480  
       
 
                     
       
 
                    9,569,680  
       
 
                     
       
Texas (21.3%)
                       
  2,000    
Alliance Airport Authority, Federal Express Corp Refg Ser 2006 (AMT)
    4.85       04/01/21       1,739,520  
  10,000    
Austin, Water & Wastewater Rrfg Sec 2001 A & B (FSA Insd) (a)
    5.125       05/15/27       10,070,680  
  5,100    
Board of Regents of the University of Houston System Ser 2008 (FSA Insd) (a)
    5.00       02/15/33       5,163,584  
  6,000    
Houston, Airport Sub Lien Ser 2000 A (AMT) (FSA Insd)
    5.875       07/01/17       6,202,560  
  5,000    
Houston, Airport Sub Lien Ser 2000 A (AMT) (FSA Insd)
    5.625       07/01/30       5,013,650  
  12,800    
Houston, Combined Utility First Lien Refg 2004 Ser A (FGIC Insd)
    5.25       05/15/23       12,983,808  
  2,375    
Houston Independent School District Ser 2008 (PSF)
    5.00       02/15/26       2,424,590  
  1,600    
Humble Independent School District Ser 2008 A
    5.00       02/15/25       1,636,528  
  2,350    
Northside Independent School District, Bldg & Refg Ser 2001 (PSF)
    5.00       02/15/26       2,368,307  
  8,600    
North Texas Tollway Authority Refg First Tier Ser 2008 D
    0.00       01/01/28       2,759,912  
  13,960    
San Antonio, Water & Refg Ser 2001 (FGIC Insd)
    5.00       05/15/26       13,877,636  
  2,000    
Tarrant County Cultural Educational Facilities Finance Corp, Air Force Village II Inc Ser 2007
    5.125       05/15/37       1,751,460  
  530    
Taxas Municipal Gas Acquisition and Supply Corp. Ser 2008 D
    6.25       12/15/26       502,816  
       
 
                     
       
 
                    66,495,051  
       
 
                     
       
Vermont (0.7%)
                       
  2,500    
Vermont Economic Development Authority, Wake Robin Corp Ser 2006 A
5.375       05/01/36       2,060,400  
       
 
                     
       
 
                       
       
Virginia (1.5%)
                       
  2,000    
Fairfax County Economic Development Authority, Goodwin House Inc Ser 2007
    5.125       10/01/42       1,721,180  
  1,450    
Henrico County Economic Development Authority, Residential Care Facility, Westminster Canterbury-Management Corp Ser 2006
    5.00       10/01/27       1,319,863  
  1,750    
Henrico County Economic Development Authority, Residential Care Facility, Westminster Canterbury-Management Corp Ser 2006
    5.00       10/01/35       1,516,725  
       
 
                     
       
 
                    4,557,768  
       
 
                     
       
Washington (6.1%)
                       
  7,000    
Energy Northwest, Columbia Refg Ser 2001 C (MBIA Insd)
    5.75       07/01/18       7,472,429  
  5,000    
Grant County Public Utility District #2, Electric Refg Ser 2001 H (FSA Insd)
    5.375       01/01/18       5,210,850  
  4,010    
Port of Seattle, Passenger Facility Ser 1998 A (MBIA Insd) (a)
    5.00       12/01/23       4,020,226  
  2,500    
Spokane School District #81 Ser 2005 (MBIA Insd)
    0.00 (e)     06/01/23       2,505,875  
       
 
                     
       
 
                    19,209,380  
       
 
                     
       
Total Tax-Exempt Municipal Bonds
(Cost $558,843,863)
                    531,615,478  
       
 
                     
                                 
NUMBER OF                            
SHARES (000)                            
       
Short-Term Investment (f) (7.7%)
                       
       
Investment Company
                       
  24,038    
Morgan Stanley Institutional Liquidity Tax-Exempt Portfolio — Institutional Class (Cost $24,037,852)
                    24,037,852  
       
 
                       
       
 
                       
       
Total Investments
(Cost $582,881,715)
                    555,653,330  
       
 
                       
                                 
PRINCIPAL                              
AMOUNT IN                              
THOUSANDS                              
       
Floating Rate Note and Dealer Trust Obligations Related to Securities Held (-30.5%)
                       
$ (95,444 )  
Notes with interest rates ranging from 1.92% to 2.74% at July 31, 2008 and contractual maturities of collateral ranging from 01/01/13 to 08/15/42 (g)
(Cost ($95,444,000))
                (95,444,000 )
       
 
                     
 
       
Total Net Investments
(Cost $487,437,715) (h) (i)
            147.2 %     460,209,330  

 


 

                                 
PRINCIPAL                              
AMOUNT IN                              
THOUSANDS                              
       
Other Assets in Excess of Liabilities
            4.7       14,836,034  
       
 
                       
       
Preferred Shares of Beneficial Interest
            (51.9 )     (162,313,729 )
       
 
                   
       
 
                       
       
Net Assets Applicable to Common Shareholders
            100.0 %   $ 312,731,635  
       
 
                   
 
Note: The categories of investments are shown as a percentage of net assets applicable to common shareholders.
 
AMT   Alternative Minimum Tax.
 
COPs   Certificates of Participation.
 
PSF   Texas Permanent School Fund Guarantee Program.
 
(a)   Underlying security related to inverse floater entered into by the Fund.
 
(b)   Prerefunded to call date shown.
 
(c)   A portion of this security has been physically segregated in connection with open futures contracts and open swap contracts in the amount of $2,064,202.
 
(d)   Resale is restricted to qualified institutional investors.
 
(e)   Security is a “Step-up” bond where the coupon increases on a predetermined future date.
 
(f)   The Fund invests in Morgan Stanley Institutional Liquidity Tax-Exempt Portfolio — Institutional Class, an open-end management investment company managed by the Investment Adviser. Investment Advisory fees paid by the Fund are reduced by an amount equal to the advisory and administrative service fees paid by Morgan Stanley Institutional Liquidity Tax-Exempt Portfolio — Institutional Class with respect to assets invested by the Fund in Morgan Stanley Institutional Liquidity Tax-Exempt Portfolio — Institutional Class .
 
(g)   Floating rate note obligations related to securities held — The Fund enters into transactions in which it transfers to Dealer Trusts (“Dealer Trusts”), fixed rate bonds in exchange for cash and residual interests in the Dealer Trusts’ assets and cash flows, which are in the form of inverse floating rate investments. The Dealer Trusts fund the purchases of the fixed rate bonds by issuing floating rate notes to third parties and allowing the Fund to retain residual interest in the bonds. The Fund enters into shortfall agreements with the Dealer Trusts which commit the Fund to pay the Dealer Trusts, in certain circumstances, the difference between the liquidation value of the fixed rate bonds held by the Dealer Trusts and the liquidation value of the floating rate notes held by third parties, as well as any shortfalls in interest cash flows. The residual interests held by the Fund (inverse floating rate investments) include the right of the Fund (1) to cause the holders of the floating rate notes to tender their notes at par at the next interest rate reset date, and (2) to transfer the municipal bond from the Dealer Trusts to the Fund, thereby collapsing the Dealer Trusts. The Fund accounts for the transfer of bonds to the Dealer Trusts as secured borrowings, with the securities transferred remaining in the Fund’s investment assets, and the related floating rate notes reflected as Fund liabilities. The notes issued by the Dealer Trusts have interest rates that reset weekly and the floating rate note holders have the option to tender their notes to the Dealer Trusts for redemption at par at each reset date. At July 31, 2008, Fund investments with a value of $133,366,903 are held by the Dealer Trusts and serve as collateral for the $95,444,000 in floating rate note obligations outstanding at that date.
 
(h)   Securities have been designated as collateral in an amount equal to $233,250,552 in connection with open futures contracts and open swap contracts.
 
(i)   The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes.
     
Bond Insurance:
   
AGC
  Assured Guaranty Corporation.
AMBAC
  AMBAC Assurance Corporation.
FGIC
  Financial Guaranty Insurance Company.
FSA
  Financial Security Assurance Inc.
MBIA
  Municipal Bond Investors Assurance Corporation.
XLCA
  XL Capital Assurance Inc.

 


 

Futures Contracts Open at July 31, 2008:
                         
                    UNREALIZED  
NUMBER OF       DESCRIPTION, DELIVERY   UNDERLYING FACE     APPRECIATION/  
CONTRACTS   LONG/SHORT   MONTH AND YEAR   AMOUNT AT VALUE     (DEPRECIATION)  
 
940
  Long   U.S. Treasury Notes 10 Year
August 2008
  $ 107,938,442     $ 1,252,833  
 
625
  Long   Treasury Swap 5 Year,
August 2008
    67,412,113       231,563  
 
87
  Short   U.S. Treasury Bond 2 Year
August 2008
    (18,444,000 )     (68,571 )
 
299
  Short   U.S. Treasury Notes 20 Year
August 2008
    (34,534,500 )     (220,279 )
 
549
  Short   U.S. Treasury Notes 5 Year
August 2008
    (61,123,431 )     (388,210 )
 
1276
  Short   Swap Futures 10 Year
August 2008
    (140,479,625 )     (986,610 )
 
                     
 
 
      Net unrealized depreciation           $ (179,275 )
 
                     

 


 

Interest Rate Swap Contracts Open at July 31, 2008:
                             
                        UNREALIZED  
    NOTIONAL     PAYMENTS   PAYMENTS   TERMINATION   APPRECIATION  
COUNTERPARTY   AMOUNT (000)     RECEIVED BY FUND   MADE BY FUND   DATE   (DEPRECIATION)  
 
Bank of America N.A.
  $ 5,239     Fixed Rate 5.58   Floating Rate 0.00@   February 28, 2018   $ 58,258  
 
Bank of America N.A.
    6,160     Fixed Rate 5.070   Floating Rate 0.00@   April 14, 2018     (48,356 )
 
Bank of America N.A.
    5,675     Fixed Rate 4.982   Floating Rate 0.00@   April 15, 2018     (62,312 )
 
Bank of America N.A.
    6,597     Floating Rate 0.00@   Fixed Rate 5.99   February 28, 2023     (84,046 )
 
Bank of America N.A.
    7,885     Floating Rate 0.00@   Fixed Rate 5.47   April 14, 2023     12,143  
 
Bank of America N.A.
    6,950     Floating Rate 0.00@   Fixed Rate 5.38   April 15, 2023     27,800  
 
JPMorgan Chase Bank N.A.
    22,080     Fixed Rate 5.385%   Floating Rate 0.00%@   February 14, 2018     94,061  
 
JPMorgan Chase Bank N.A.
    28,120     Floating Rate 0.00@   Fixed Rate 5.831   February 14, 2023     (235,364 )
 
Merrill Lynch & Co.
    7,575     Fixed Rate 5.00   Floating Rate 0.00@   April 15, 2018     (78,477 )
 
Merrill Lynch & Co.
    9,760     Floating Rate 0.00@   Fixed Rate 5.395   April 15, 2023     35,038  
 
                         
 
 
          Net unrealized depreciation           $ (281,255 )
 
                         
 
@   Floating rate represents USD-3 months LIBOR.

 


 

Item 2. Controls and Procedures.
(a) The Trust’s principal executive officer and principal financial officer have concluded that the Trust’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Trust in this Form N-Q was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, based upon such officers’ evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.
(b) There were no changes in the Trust’s internal control over financial reporting that occurred during the registrant’s fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Trust’s internal control over financial reporting.
Item 3. Exhibits.
(a) A separate certification for each principal executive officer and principal financial officer of the registrant are attached hereto.

2


 

SIGNATURES
     Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Morgan Stanley Quality Municipal Income Trust
/s/ Randy Takian
Randy Takian
Principal Executive Officer
September 18, 2008
     Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
/s/ Randy Takian
Randy Takian
Principal Executive Officer
September 18, 2008
/s/ Francis Smith
Francis Smith
Principal Financial Officer
September 18, 2008

3

EX-99.CERT 2 y00206exv99wcert.htm EX-99.CERT: CERTIFICATIONS EX-99.CERT
Exhibit 3 A1
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
I, Randy Takian, certify that:
1.   I have reviewed this report on Form N-Q of Morgan Stanley Quality Municipal Income Trust;
 
2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
3.   Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;
 
4.   The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have:
  (a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
  (b)   Omitted;
 
  (c)   Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and
 
  (d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.   The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
  (a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
 
  (b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: September 18, 2008
/s/ Randy Takian
Ronald E. Robison
Principal Executive Officer

4


 

Exhibit 3 A2
CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER
I, Francis Smith, certify that:
1.   I have reviewed this report on Form N-Q of Morgan Stanley Quality Municipal Income Trust;
 
2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
3.   Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;
 
4.   The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have:
  (a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
  (b)   Omitted;
 
  (c)   Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and
 
  (d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.   The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
  (a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
 
  (b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: September 18, 2008
/s/ Francis Smith
Francis Smith
Principal Financial Officer

5

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