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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:		811-10377
Registrant Name:		PIMCO Municipal Income Fund
Address of Principal Executive Offices:		1345 Avenue of the Americas,
		New York, NY 10105
Name and Address of Agent for Service:		Lawrence G. Altadonna
		1345 Avenue of the Americas,
		New York, NY 10105
Registrant’s telephone number, including area code:		212-739-3371
Date of Fiscal Year End:		April 30, 2010
Date of Reporting Period:		July 31, 2009

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-2001. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

 

Item 1. Schedule of Investments

PIMCO Municipal Income Fund Schedule of Investments
July 31, 2009 (unaudited)

Principal
Amount						Credit Rating
(000)						(Moody’s/S&P)		Value*
MUNICIPAL BONDS & NOTES—93.3%
				Alabama—0.9%
$	2,500			Birmingham Baptist Medical Centers Special Care Facs. Financing Auth. Rev., Baptist Health Systems, 5.875%, 11/15/24, Ser. A		Baa2/NR		$	2,247,000
				Huntsville-Redstone Village Special Care Facs. Financing Auth. Rev.,
	250			5.50%, 1/1/28		NR/NR			183,395
	885			5.50%, 1/1/43		NR/NR			585,746
	1,350			Montgomery Medical Clinic Board Rev., Jackson Hospital & Clinic, 5.25%, 3/1/31		Baa2/BBB-			1,080,041
									4,096,182
				Alaska—1.2%
	3,280			Boro of Matanuska-Susitna Rev., Goose Creek Correctional Center, 6.00%, 9/1/32		Aa2/AAA			3,534,233
	900			Industrial Dev. & Export Auth. Boys & Girls Home Rev., 6.00%, 12/1/36		NR/NR			579,978
	2,400			Northern Tobacco Securitization Corp. Rev., 5.00%, 6/1/46, Ser. A		Baa3/NR			1,279,176
									5,393,387
				Arizona—4.3%
	5,000			Apache Cnty. Industrial Dev. Auth. Pollution Control Rev., Tucson Electric Power Co. Project, 5.875%, 3/1/33, Ser. B		Baa3/BBB-			4,401,800
				Health Facs. Auth. Rev.,
	2,050			Banner Health, 5.50%, 1/1/38, Ser. D		NR/A+			1,916,402
	2,750			Beatitudes Campus Project, 5.20%, 10/1/37		NR/NR			1,747,927
	4,150			Pima Cnty. Industrial Dev. Auth. Rev., Tucson Electric Power, 6.375%, 9/1/29, Ser. A		Baa3/BBB-			4,015,374
	5,000			Salt River Project Agricultural Improvement & Power Dist. Rev., 5.00%, 1/1/39, Ser. A (i)		Aa1/AA			4,961,700
	4,200			Salt Verde Financial Corp. Rev., 5.00%, 12/1/37		A3/A			3,145,296
									20,188,499
				Arkansas—0.4%
	8,500			Dev. Finance Auth. Rev., Arkansas Cancer Research Center Project, zero coupon, 7/1/36 (AMBAC)		Aa3/NR			1,974,295
				California—7.7%
	3,000			Chula Vista Rev., 5.875%, 2/15/34, Ser. B		A1/A+			2,948,310
	6,000			Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/33, Ser. A-1		Baa3/BBB			4,003,020
	2,000			Health Facs. Financing Auth. Rev., Catholic Healthcare West, 6.00%, 7/1/39, Ser. A		A2/A			1,902,040
	4,175			Montebello Unified School Dist., GO, 5.00%, 8/1/33 (FSA)		Aa3/AAA			3,968,003
	5,000			Orange Cnty. Rev., 5.25%, 7/1/39, Ser. A		Aa3/AA-			4,768,050
				State, GO,
	300			5.00%, 6/1/37		Baa1/A			273,957
	4,200			6.00%, 4/1/38		Baa1/A			4,342,632
				Statewide Communities Dev. Auth. Rev.,
	1,000			Catholic Healthcare West, 5.50%, 7/1/31, Ser. E		A2/A			927,220
				Methodist Hospital Project (FHA),
	2,600			6.625%, 8/1/29		Aa2/AA			2,824,562
	9,500			6.75%, 2/1/38		Aa2/AA			10,244,230
									36,202,024

PIMCO Municipal Income Fund Schedule of Investments
July 31, 2009 (unaudited)

Principal
Amount						Credit Rating
(000)						(Moody’s/S&P)		Value*
				Colorado—0.5%
$	500			Confluence Metropolitan Dist. Rev., 5.45%, 12/1/34		NR/NR		$	316,005
	500			Public Auth. for Colorado Energy Rev., 6.50%, 11/15/38		A2/A			487,800
	1,500			Univ. of Colorado Rev., 5.375%, 6/1/38, Ser. A		Aa3/AA-			1,553,730
									2,357,535
				Connecticut—0.2%
	1,000			State Dev. Auth. Pollution Control Rev., Connecticut Light & Power Co., 5.85%, 9/1/28		Baa1/BBB			1,006,480
				District of Columbia—1.4%
	2,500			Dist. of Columbia Rev., Brookings Institution, 5.75%, 10/1/39		Aa3/A+			2,580,150
	4,175			Tobacco Settlement Financing Corp. Rev., 6.25%, 5/15/24		Baa3/BBB			3,962,492
									6,542,642
				Florida—4.1%
	905			Beacon Lakes Community Dev. Dist., Special Assessment, 6.00%, 5/1/38, Ser. A		NR/NR			537,977
	4,000			Broward Cnty. Water & Sewer Utility Rev., 5.25%, 10/1/34, Ser. A (i)		Aa3/AA			4,019,920
	500			Lee Cnty. Industrial Dev. Auth. Rev., 5.375%, 6/15/37, Ser. A		NR/BB			304,695
	3,000			Miami-Dade Cnty. Rev., 5.50%, 10/1/36, Ser. A		A2/A-			2,929,500
	1,250			Miami-Dade Cnty. School Board, CP, 5.375%, 2/1/34, Ser. A		Aa2/AAA			1,262,488
	3,900			State Board of Education, GO, 5.00%, 6/1/38, Ser. D (i)		Aa1/AAA			3,858,582
	5,685			State Board of Governors Rev., Florida Univ., 6.50%, 7/1/33		Aa2/AA			6,293,579
									19,206,741
				Georgia—0.3%
	2,300			Medical Center Hospital Auth. Rev., Spring Harbor Green Island Project, 5.25%, 7/1/37		NR/NR			1,593,946
				Hawaii—1.5%
	6,935			City & Cnty. of Honolulu Sewer Rev., 5.00%, 7/1/23 (FGIC)(NPFGC)		A1/A			6,974,321
				Illinois—6.3%
				Chicago, GO,
	5,000			5.00%, 1/1/34, Ser. C (i)		Aa3/AA-			4,916,700
	2,935			5.375%, 1/1/34, Ser. A (FGIC)(NPFGC)		Aa3/AA-			2,936,732
	10,115			Chicago Board of Education School Reform, GO, zero coupon, 12/1/31, Ser. A (FGIC)(NPFGC)		A1/AA-			2,423,453
	1,250			Chicago Motor Fuel Tax Rev., 5.00%, 1/1/38, Ser. A		Aa2/AAA			1,227,612
	190			Educational Facs. Auth. Rev., Univ. of Chicago, 5.25%, 7/1/41, Ser. A		Aa1/AA			191,260
				Finance Auth. Rev.,
	400			OSF Healthcare Systems, 7.125%, 11/15/37, Ser. A		A2/A			420,784
	10,000			Univ. of Chicago, 5.50%, 7/1/37, Ser. B (i)		Aa1/AA			10,369,900
	3,345			Regional Transportation Auth. Rev., 5.50%, 6/1/23, Ser. B (FGIC)(NPFGC)		Aa2/AA+			3,789,718
	1,900			Springfield Power Rev., 5.00%, 3/1/36		Aa3/AA-			1,850,866
	1,495			Univ. Rev., 5.25%, 4/1/32, Ser. B (FGIC)(NPFGC)		Aa3/AA-			1,497,945
									29,624,970
				Indiana—0.5%
	1,500			Finance Auth. Rev., Duke Energy Indiana, Inc., 6.00%, 8/1/39, Ser. B		A3/A			1,506,690
	1,000			Municipal Power Agency Rev., 6.00%, 1/1/39, Ser. B		A1/A+			1,020,090
									2,526,780

PIMCO Municipal Income Fund Schedule of Investments
July 31, 2009 (unaudited)

Principal
Amount						Credit Rating
(000)						(Moody’s/S&P)		Value*
				Iowa—1.6%
				Finance Auth. Rev.,
$	4,890			Deerfield Retirement Community, Inc., 5.50%, 11/15/37		NR/NR		$	2,762,801
				Edgewater LLC Project,
	3,500			6.75%, 11/15/37		NR/NR			2,767,380
	1,500			6.75%, 11/15/42		NR/NR			1,168,905
	1,700			Wedum Walnut Ridge LLC Project, 5.625%, 12/1/45, Ser. A		NR/NR			766,241
									7,465,327
				Kansas—4.6%
	1,000			Dev. Finance Auth. Rev., Adventist Health, 5.75%, 11/15/38		A1/A+			1,003,750
	1,000			Lenexa City Center East, Tax Allocation, 6.00%, 4/1/27		NR/NR			762,200
	650			Manhattan Rev., Meadowlark Hills Retirement, 5.125%, 5/15/42, Ser. B		NR/NR			440,713
				Wichita Hospital Rev.,
	5,000			5.625%, 11/15/31, Ser. III		NR/A+			4,909,250
	14,370			6.25%, 11/15/24, Ser. XI		NR/A+			14,547,326
									21,663,239
				Kentucky—0.7%
				Economic Dev. Finance Auth. Hospital Facs. Rev., Baptist Healthcare System, Ser. A,
	1,000			5.375%, 8/15/24		Aa3/NR			1,060,030
	1,200			5.625%, 8/15/27		Aa3/NR			1,249,908
	810			Economic Dev. Finance Auth. Rev., St. Luke’s Hospital, 6.00%, 10/1/19, Ser. B		A3/A			810,024
									3,119,962
				Louisiana—5.5%
	4,300			Local Gov’t Environmental Facs. & Community Dev. Auth. Rev., 6.55%, 9/1/25 (ACA)		NR/NR			3,668,803
	27,895			Tobacco Settlement Financing Corp. Rev., 5.875%, 5/15/39, Ser.2001- B		Baa3/BBB			22,113,761
									25,782,564
				Massachusetts—0.4%
	550			Dev. Finance Agcy. Rev., Linden Ponds, Inc., 5.75%, 11/15/35, Ser. A		NR/NR			351,015
	1,500			State College Building Auth. Rev., 5.50%, 5/1/39, Ser. A		A1/A+			1,508,850
									1,859,865
				Michigan—2.3%
	1,000			Detroit, GO, 5.375%, 4/1/17, Ser. A-1 (NPFGC)		Baa1/A			932,320
	4,550			Garden City Hospital Finance Auth. Rev., 5.00%, 8/15/38, Ser. A		NR/NR			2,250,293
				Royal Oak Hospital Finance Auth. Rev., William Beaumont Hospital,
	50			5.25%, 11/15/35, Ser. M (NPFGC)		A1/A			40,180
	1,500			8.25%, 9/1/39		A1/A			1,709,715
	4,000			State Hospital Finance Auth. Rev., Detroit Medical Center, 6.25%, 8/15/13, Ser. A		Ba3/BB-			3,918,000
	2,000			Strategic Fund Ltd. Obligation Rev., Detroit Edison Pollution Control Co., 5.45%, 9/1/29, Ser. C		A3/A-			1,983,040
									10,833,548
				Minnesota—0.1%
	95			Agricultural & Economic Dev. Board Rev., Health Care System, 6.375%, 11/15/29, Ser. A		A2/A			96,058
	500			Washington Cnty. Housing & Redev. Auth. Rev., Birchwood & Woodbury Projects, 5.625%, 6/1/37, Ser. A		NR/NR			373,515
									469,573

PIMCO Municipal Income Fund Schedule of Investments
July 31, 2009 (unaudited)

Principal
Amount						Credit Rating
(000)						(Moody’s/S&P)		Value*
				Missouri—0.2%
$	1,000			Joplin Industrial Dev. Auth. Rev., Christian Homes, Inc., 5.75%, 5/15/26, Ser. F		NR/NR		$	748,430
				Nevada—3.6%
	5,000			Clark Cnty., GO, 4.75%, 6/1/30 (FSA)		Aa1/AAA			4,649,550
	12,185			Washoe Cnty., GO, 5.00%, 1/1/35 (NPFGC)		Aa2/AA			12,217,534
									16,867,084
				New Hampshire—0.7%
	3,000			Business Finance Auth. Pollution Control Rev., Connecticut Light & Power Co., 5.85%, 12/1/22, Ser. A		Baa1/BBB			3,048,690
				New Jersey—4.8%
	16,550			Economic Dev. Auth., Special Assessment, Kapkowski Road Landfill Project, 5.75%, 4/1/31		Baa3/NR			12,647,841
	2,000			Economic Dev. Auth. Rev., 5.50%, 12/15/34, Ser. Z		Aa2/AAA			2,084,520
	1,000			Health Care Facs. Financing Auth. Rev., Trinitas Hospital, 5.25%, 7/1/30, Ser. A		Baa3/BBB-			753,190
	2,000			State Turnpike Auth. Rev., 5.25%, 1/1/40, Ser. E		A3/A+			2,007,260
	9,100			Tobacco Settlement Financing Corp. Rev., 5.00%, 6/1/41, Ser. 1A		Baa3/BBB			4,905,901
									22,398,712
				New Mexico—0.5%
	2,500			Farmington Pollution Control Rev., 5.80%, 4/1/22, Ser. A		Baa3/BB+			2,342,150
				New York—6.4%
				Liberty Dev. Corp. Rev., Goldman Sachs Headquarters,
	5,000			5.25%, 10/1/35		A1/A			4,728,050
	3,000			5.50%, 10/1/37		A1/A			2,899,800
	4,200			Nassau Cnty. Industrial Dev. Agcy. Rev., Amsterdam at Harborside, 6.70%, 1/1/43, Ser. A		NR/NR			3,228,624
				New York City Municipal Water Finance Auth., Water & Sewer System Rev. (i),
	13,000			5.00%, 6/15/26, Ser. E		Aa2/AAA			13,183,690
	670			5.00%, 6/15/37, Ser. D		Aa2/AAA			665,967
	3,000			New York City Municipal Water Finance Auth. Rev., Second Gen. Resolution, 5.00%, 6/15/39, Ser. GG-1		Aa3/AA+			2,963,130
	1,000			State Dormitory Auth. Rev., 5.00%, 3/15/38, Ser. A		NR/AAA			990,930
	1,625			Westchester Cnty. Healthcare Corp. Rev., 5.875%, 11/1/25, Ser. A		Baa3/BBB-			1,502,410
									30,162,601
				North Carolina—0.3%
	570			Capital Facs. Finance Agcy. Rev., Duke Univ. Project, 5.125%, 10/1/41, Ser. A		Aa1/AA+			574,412
	1,500			Medical Care Commission Rev., Village at Brookwood, 5.25%, 1/1/32		NR/NR			961,815
									1,536,227
				Ohio—2.7%
	11,000			Buckeye Tobacco Settlement Financing Auth. Rev., 5.875%, 6/1/47, Ser. A-2		Baa3/BBB			6,315,540
	500			Cnty. of Montgomery Rev., Miami Valley Hospital, 6.25%, 11/15/39, Ser. A		Aa3/AA-			508,690

PIMCO Municipal Income Fund Schedule of Investments
July 31, 2009 (unaudited)

Principal
Amount						Credit Rating
(000)						(Moody’s/S&P)		Value*
				Ohio (continued)
				Lorain Cnty. Hospital Rev., Catholic Healthcare, Ser. A,
$	2,500			5.625%, 10/1/17		A1/AA-		$	2,575,025
	2,565			5.75%, 10/1/18		A1/AA-			2,637,846
	500			State Higher Educational Fac. Commission Rev., Univ. Hospital Health Systems, 6.75%, 1/15/39, Ser. A		A2/A			509,980
									12,547,081
				Oregon—0.6%
	2,000			Oregon Health & Science Univ. Rev., 5.75%, 7/1/39, Ser. A		A2/BBB+			2,046,880
	600			State Department of Administrative Services, CP, 5.25%, 5/1/39, Ser. A		Aa3/AA-			609,096
									2,655,976
				Pennsylvania—5.7%
	1,000			Allegheny Cnty. Industrial Dev. Auth. Rev., USX Corp., 5.60%, 9/1/30		Baa1/BBB+			895,350
	5,000			Geisinger Auth. Rev., 5.25%, 6/1/39, Ser. A		Aa2/AA			4,896,300
	2,000			Harrisburg Auth. Rev., Harrisburg Univ. of Science, 6.00%, 9/1/36, Ser. B		NR/NR			1,646,460
	6,200			Higher Educational Facs. Auth. Rev., UPMC Health System, 6.00%, 1/15/31, Ser. A		Aa3/A+			6,329,332
				Lancaster Cnty. Hospital Auth. Rev., Brethren Village Project, Ser. A,
	750			6.25%, 7/1/26		NR/NR			699,608
	85			6.375%, 7/1/30		NR/NR			77,388
	7,000			Philadelphia, GO, 5.25%, 12/15/32, Ser. A (FSA)		Aa3/AAA			6,906,760
	4,700			Philadelphia Hospitals & Higher Education Facs. Auth. Rev., Temple Univ. Hospital, 6.625%, 11/15/23, Ser. A		Baa3/BBB			4,620,758
	500			Philadelphia Water Rev., 5.25%, 1/1/36, Ser. A		A3/A			486,740
									26,558,696
				Puerto Rico—0.7%
	135			Commonwealth of Puerto Rico, GO, 5.00%, 7/1/35, Ser. B		Baa3/BBB-			112,421
				Sales Tax Financing Corp. Rev., Ser. A,
	32,550			zero coupon, 8/1/54 (AMBAC)		A1/AA-			1,745,657
	29,200			zero coupon, 8/1/56		Aa3/AA-			1,375,028
									3,233,106
				Rhode Island—3.7%
	23,800			Tobacco Settlement Financing Corp. Rev., 6.25%, 6/1/42, Ser. A		Baa3/BBB			17,405,416
				South Carolina—1.5%
				Greenwood Cnty. Hospital Rev., Self Memorial Hospital,
	3,500			5.50%, 10/1/21		A2/A			3,518,060
	2,000			5.50%, 10/1/26		A2/A			1,939,400
	450			Jobs Economic Dev. Auth. Rev., Lutheran Homes, 5.50%, 5/1/28		NR/NR			327,488
	1,000			State Public Service Auth. Rev., 5.25%, 1/1/39, Ser. A		Aa2/AA-			1,026,080
									6,811,028
				Tennessee—3.7%
	940			Memphis Health Educational & Housing Fac. Rev., Wesley Housing Corp. Project, 6.95%, 1/1/20 (a)(b)(d)		NR/NR			470,000
	5,000			Metropolitan Gov’t Nashville & Davidson Cnty. Health & Educational Facs. Rev., Vanderbilt Univ., 5.00%, 10/1/39, Ser. B (i)		Aa2/AA			5,039,300

PIMCO Municipal Income Fund Schedule of Investments
July 31, 2009 (unaudited)

Principal
Amount						Credit Rating
(000)						(Moody’s/S&P)		Value*
				Tennessee (continued)
				State Energy Acquisition Corp. Rev.,
$	370			5.00%, 2/1/21, Ser. C		Baa1/A		$	338,221
	6,460			5.25%, 9/1/17, Ser. A		Ba3/BBB			6,334,999
	600			5.25%, 9/1/21, Ser. A		Ba3/BBB			559,620
	300			5.25%, 9/1/22, Ser. A		Ba3/BBB			276,510
	5,000			5.25%, 9/1/24, Ser. A		Ba3/BBB			4,505,750
									17,524,400
				Texas—7.8%
	10,000			Coppell Independent School Dist., GO, zero coupon, 8/15/29, (PSF-GTD)		Aaa/AAA			3,800,000
	1,200			Dallas Water Rev., 5.25%, 8/15/38		Aa2/AAA			1,199,976
	20			Duncanville Independent School Dist., GO, 5.25%, 2/15/32, Ser. B (PSF-GTD)		Aaa/AAA			20,340
	285			Mansfield Independent School Dist., GO, 5.25%, 2/15/23 (PSF-GTD)		Aaa/AAA			292,396
				Municipal Gas Acquisition & Supply Corp. I Rev.,
	150			5.25%, 12/15/25, Ser. A		A2/A			128,495
	6,500			6.25%, 12/15/26, Ser. D		A2/A			6,338,280
				North Harris Cnty. Regional Water Auth. Rev.,
	4,200			5.25%, 12/15/33		A3/A+			4,032,504
	4,200			5.50%, 12/15/38		A3/A+			4,092,270
				North Texas Tollway Auth. Rev.,
	6,050			5.625%, 1/1/33, Ser. A		A2/A-			5,953,018
	600			5.75%, 1/1/33, Ser. F		A3/BBB+			581,226
	6,500			State Municipal Gas Acquisition & Supply Corp. I Rev., 5.25%, 12/15/23, Ser. A		A2/A			5,676,580
	400			State Public Finance Auth. Rev., 5.875%, 12/1/36, Ser. A		Baa3/BBB-			290,100
	4,000			Tarrant Cnty. Cultural Education Facs. Finance Corp. Rev., Baylor Health Care Systems Project, 6.25%, 11/15/29		Aa2/AA-			4,124,440
									36,529,625
				Utah—1.5%
	7,000			Salt Lake Cnty. Hospital Rev., IHC Health Services, 5.125%, 2/15/33 (AMBAC)		NR/AA+			7,204,540
				Virginia—0.5%
	1,000			Fairfax Cnty. Industrial Dev. Auth. Rev., Inova Health Systems, 5.50%, 5/15/35, Ser. A		Aa2/AA+			1,023,450
	2,000			Peninsula Town Center Community Dev. Auth. Rev., 6.45%, 9/1/37		NR/NR			1,506,780
									2,530,230
				Washington—1.1%
				Health Care Facs. Auth. Rev.,
	700			Multicare Health Systems, 6.00%, 8/15/39, Ser. B		Aa2/AAA			704,172
	250			Seattle Cancer Care Alliance, 7.375%, 3/1/38		A3/NR			265,575
	2,000			Virginia Mason Medical Center, 6.125%, 8/15/37, Ser. A		Baa2/BBB			1,740,300
				State Housing Finance Commission Rev., Skyline at First Hill Project, Ser. A,
	275			5.25%, 1/1/17		NR/NR			233,698
	3,600			5.625%, 1/1/38		NR/NR			2,347,488
									5,291,233

PIMCO Municipal Income Fund Schedule of Investments
July 31, 2009 (unaudited)

Principal
Amount						Credit Rating
(000)						(Moody’s/S&P)		Value*
				Wisconsin—2.8%
				Health & Educational Facs. Auth. Rev.,
$	2,230			Kenosha Hospital & Medical Center Project, 5.625%, 5/15/29		NR/A		$	2,106,592
	500			Prohealth Care, Inc., 6.625%, 2/15/39		A1/A+			514,380
	10,000			State Rev., 6.00%, 5/1/36, Ser. A		A1/AA-			10,573,000
									13,193,972
				Total Municipal Bonds & Notes (cost—$463,016,303)					437,471,077
VARIABLE RATE NOTES (a)(c)(f)—3.4%
				Illinois—1.5%
	7,253			Cook Cnty., GO, 7.53%, 11/15/28, Ser. 458 (FGIC) (e)		Aa3/NR			7,269,398
				Texas—0.4%
	1,000			JPMorgan Chase Putters/Drivers Trust, GO, 7.761%, 2/1/17, Ser. 3480 (b)		NR/AA			1,004,790
				JPMorgan Chase Putters/Drivers Trust Rev.,
	200			8.307%, 2/1/27, Ser. 3224		Aa1/NR			222,888
	600			8.391%, 10/1/31, Ser. 3227		NR/AAA			672,252
									1,899,930
				Washington—1.5%
	6,670			JPMorgan Chase Putters/Drivers Trust, GO, 11.198%, 8/1/28, Ser. 3388		NR/AA+			6,846,555
				Total Variable Rate Notes (cost—$15,300,739)					16,015,883
CORPORATE BONDS & NOTES (h)—2.2%
				Financial Services—2.2%
	10,000			American General Finance Corp., 4.625%, 9/1/10		Baa2/BB+			7,716,160
	4,500			CIT Group, Inc., 5.80%, 7/28/11		Ca/CC			2,535,579
				Total Corporate Bonds & Notes (cost—$10,699,534)					10,251,739
Shares
COMMON STOCK—0.0%
				Airlines—0.0%
	457			Delta Air Lines, Inc. (g) (cost—$0)					3,167
SHORT-TERM INVESTMENTS—1.1%
Principal Amount (000)
Corporate Notes (h)—1.1%
				Financial Services—1.1%
$	1,600			American General Finance Corp., 0.945%, 10/2/09, FRN		Baa2/BB+			1,488,040
	4,400			CIT Group, Inc., 4.125%, 11/3/09		Ca/CC			2,603,242
				International Lease Finance Corp., FRN,
	600			0.881%, 5/24/10		Baa2/BBB+			522,422
	500			0.909%, 1/15/10		Baa2/BBB+			477,377
				Total Corporate Notes (cost—$6,763,055)					5,091,081
				Total Investments (cost—$495,779,631)—100.0%				$	468,832,947

Notes to Schedule of Investments:

Glossary:
ACA—insured by American Capital Access Holding Ltd.
AMBAC—insured by American Municipal Bond Assurance Corp.
CP—Certificates of Participation
FGIC—insured by Financial Guaranty Insurance Co.
FHA—insured by Federal Housing Administration
FRN—Floating Rate Note. The interest rate disclosed reflects the rate in effect on July 31, 2009.
FSA—insured by Financial Security Assurance, Inc.
GO—General Obligation Bond

GTD—Guaranteed
NPFGC—insured by National Public Finance Guarantee Corporation
NR—Not Rated
PSF—Public School Fund

Other Investments:

(A) The weighted average daily balance of reverse repurchase agreements outstanding during the three months ended July 31, 2009 was $14,728,598 at a weighted average interest rate of 0.78%. The total market value of underlying collateral (refer to the Schedule of Investments for positions segregated as collateral for reverse repurchase agreements) for open reverse repurchase agreements at July 31, 2009 was $15,342,820. Open reverse repurchase agreements at July 31, 2009:

Counterparty		Rate				Trade Date				Maturity Date				Principal & Interest				Principal
Barclays Bank			0.75	%			7/2/09				8/4/09			$	4,413,757			$	4,411,000
			0.75	%			7/6/09				8/6/09				4,041,188				4,039,000
			0.75	%			7/20/09				8/6/09				4,581,145				4,580,000
																		$	13,030,000

Fair Value Measurements—The Fund has adopted the Financial Accounting Standards Board (“FASB”) Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value and requires additional disclosures about the use of the fair value measurements. Under this standard, fair-value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e. the “exit price”) in an orderly transaction between market participants at the measurement date. The three levels of the fair value hierarchy under FAS 157 are described below:

	•		Level 1 — quoted prices in active markets for identical investments that the Fund has the ability to access
	•		Level 2 — valuations based on other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.), or quotes from inactive exchanges
	•		Level 3 — valuations based on significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The Fund has adopted FASB Staff Position No. 157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability have Significantly Decreased and Identifying Transactions that are not Orderly (“FAS-157-4”). FAS 157-4 provides guidance on determining when there has been a significant decrease in the volume and level of activity for the asset or liability, when a transaction is not orderly, and how that information must be incorporated into a fair value measurement. FAS 157-4 emphasizes that even if there has been a significant decrease in volume and level activity for the asset or liability and regardless of the valuation techniques used, the objective of a fair value measurement remains the same.

An investment asset or liability’s level within the fair value hierarchy is based on the lowest level input, individually or in the aggregate, that is significant to fair value measurement.

The valuation techniques used by the Fund to measure fair value during the three months ended July 31, 2009 maximized the use of observable inputs and minimized the use of unobservable inputs.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

A summary of the inputs used as of July 31, 2009, in valuing the Fund’s assets and liabilities is listed below by investment type.

						Level 2 —				Level 3 —
						Other Significant				Significant
		Level 1 —				Observable				Unobservable				Value at
		Quoted Prices				Inputs				Inputs				7/31/09
Investments in Securities — Assets
Municipal Bonds & Notes			—			$	437,471,077				—			$	437,471,077
Variable Rate Notes			—				16,015,883				—				16,015,883
Corporate Bonds & Notes			—				10,251,739				—				10,251,739
Common Stock		$	3,167				—				—				3,167
Short-Term Investments			—				5,091,081				—				5,091,081
Total Investments in Securities		$	3,167			$	468,829,780				—			$	468,832,947

Item 2. Controls and Procedures

(a) The registrant’s President & Chief Executive Officer and Treasurer, Principal Financial & Accounting Officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a -3(c))), are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.

(b) There were no significant changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a -3(d))) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits

     (a) Exhibit 99.302 Cert. — Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

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.

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.