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- 05740 ) 
 
Exact name of registrant as specified in charter:  Putnam Managed Municipal Income Trust 
 
Address of principal executive offices: One Post Office Square, Boston, Massachusetts 02109 
 
Name and address of agent for service:  Beth S. Mazor, Vice President 
  One Post Office Square 
  Boston, Massachusetts 02109 
 
Copy to:  John W. Gerstmayr, Esq. 
  Ropes & Gray LLP 
  One International Place 
  Boston, Massachusetts 02110 
 
Registrant’s telephone number, including area code:     (617) 292-1000 

Date of fiscal year end: October 31, 2007

Date of reporting period: January 31, 2007

Item 1. Schedule of Investments:


Putnam Managed Municipal Income Trust       

 
The fund's portfolio       
1/31/07 (Unaudited)       
 
 
Key to abbreviations       
AMBAC -- AMBAC Indemnity Corporation       
CIFG -- CIFG Assurance North America, Inc.       
COP -- Certificate of Participation       
FGIC -- Financial Guaranty Insurance Company       
FHA Insd. -- Federal Housing Administration Insured       
FHLMC Coll. -- Federal Home Loan Mortgage Corporation Collateralized       
FNMA Coll. -- Federal National Mortgage Association Collateralized       
FRB -- Floating Rate Bonds       
FRN -- Floating Rate Notes       
FSA -- Financial Security Assurance       
GNMA Coll. -- Government National Mortgage Association Collateralized       
G.O. Bonds -- General Obligation Bonds       
MBIA -- MBIA Insurance Company       
PSFG -- Permanent School Fund Guaranteed       
Radian Insd. -- Radian Group Insured       
U.S. Govt. Coll. -- U.S. Government Collateralized       
VRDN -- Variable Rate Demand Notes       
 
MUNICIPAL BONDS AND NOTES (143.7%)(a)       
    Principal   
  Rating(RAT)  amount  Value 

Alabama (0.4%)       
Butler, Indl. Dev. Board Solid Waste Disp. Rev. Bonds       
(GA. Pacific Corp.), 5 3/4s, 9/1/28  B  $950,000  $969,808 
Sylacauga, Hlth. Care Auth. Rev. Bonds (Coosa Valley       
Med. Ctr.), Ser. A, 6s, 8/1/25  B/P  650,000  678,067 
      1,647,875 

 
Arizona (3.3%)       
Apache Cnty., Indl. Dev. Auth. Poll. Control Rev.       
Bonds (Tucson Elec. Pwr. Co.), Ser. B, 5 7/8s, 3/1/33  Baa3  1,000,000  1,000,970 
AZ Hlth. Fac. Auth. Hosp. Syst. Rev. Bonds (John C.       
Lincoln Hlth. Network), 6 3/8s, 12/1/37 (Prerefunded)  BBB  1,000,000  1,137,400 
Casa Grande, Indl. Dev. Auth. Rev. Bonds (Casa Grande       
Regl. Med. Ctr.), Ser. A, 7 5/8s, 12/1/29  B+  1,800,000  1,994,634 
Cochise Cnty., Indl. Dev. Auth. Rev. Bonds (Sierra       
Vista Regl. Hlth. Ctr.), Ser. A, 6.2s, 12/1/21  BB+/P  480,000  512,558 
Coconino Cnty., Poll. Control Rev. Bonds       
(Tuscon/Navajo Elec. Pwr.), Ser. A, 7 1/8s, 10/1/32  Baa3  3,000,000  3,106,950 
Glendale, Wtr. & Swr. Rev. Bonds, AMBAC, 5s, 7/1/28  Aaa  2,000,000  2,098,120 
Pima Cnty., Indl Dev. Auth. Rev. Bonds (Horizon Cmnty.       
Learning Ctr.), 5.05s, 6/1/25  BBB-  815,000  796,842 
Queen Creek, Special Assmt. Bonds (Dist. No. 001), 5s,       
1/1/26  Baa2  600,000  612,780 
Scottsdale, Indl. Dev. Auth. Hosp. Rev. Bonds       
(Scottsdale Hlth. Care), 5.8s, 12/1/31 (Prerefunded)  A3  1,000,000  1,095,180 
      12,355,434 

 
Arkansas (3.3%)       
AR State Hosp. Dev. Fin. Auth. Rev. Bonds (Washington       
Regl. Med. Ctr.), 7 3/8s, 2/1/29 (Prerefunded)  Baa2  4,600,000  5,053,652 
Independence Cnty., Poll. Control Rev. Bonds (Entergy       
AR, Inc.), 5s, 1/1/21  A-  1,000,000  1,023,830 
Little Rock G.O. Bonds (Cap. Impt.), FSA, 3.95s, 4/1/19  Aaa  765,000  754,313 
Northwest Regl. Arpt. Auth. Rev. Bonds, 7 5/8s, 2/1/27       
(Prerefunded)  BB/P  2,750,000  2,905,238 
Springdale, Sales & Use Tax Rev. Bonds, FSA       
4.05s, 7/1/26  AAA  1,000,000  993,330 
4s, 7/1/27  AAA  1,000,000  993,080 
Washington Cnty., Hosp. Rev. Bonds (Regl. Med. Ctr.),       
Ser. B, 5s, 2/1/25  Baa2  500,000  513,580 
      12,237,023 

 
California (15.7%)       
CA Hlth. Fac. Fin. Auth. Rev. Bonds       
AMBAC, 5.293s, 7/1/17  Aaa  3,400,000  3,402,720 
(CA-NV Methodist), 5s, 7/1/26  A+  500,000  523,670 
(Stanford Hosp. & Clinics), Ser. A, 5s, 11/15/23  A2  1,000,000  1,046,700 
CA Poll. Control Fin. Auth. Solid Waste Disp. Rev.       
Bonds (Waste Management, Inc.), Ser. A-2, 5.4s, 4/1/25  BBB  1,200,000  1,270,992 
CA State Dept. of Wtr. Resources Rev. Bonds, Ser. A       
AMBAC, 5 1/2s, 5/1/13  Aaa  16,500,000  18,029,550 
5 1/2s, 5/1/11  A1  3,000,000  3,201,390 
CA Statewide Cmntys., Dev. Auth. COP (The Internext       
Group), 5 3/8s, 4/1/30  BBB  3,000,000  3,040,410 
CA Statewide Cmntys., Dev. Auth. Rev. Bonds (Thomas       
Jefferson School of Law), Ser. B, 4 7/8s, 10/1/31  BBB-  1,030,000  1,033,615 
CA Statewide Cmntys., Dev. Auth. Apt. Mandatory Put       
Bonds (Irvine Apt. Cmntys.), Ser. A-3, 5.1s, 5/17/10  BBB+  2,250,000  2,296,058 
Capistrano, Unified School Dist. Cmnty. Fac. Special       
Tax Bonds (No. 98-2 Ladera), 5.7s, 9/1/20 (Prerefunded)  BBB/P  1,000,000  1,066,560 
Cathedral City, Impt. Board Act of 1915 Special Assmt.       


Bonds (Cove Impt. Dist.), Ser. 04-02       
5.05s, 9/2/35  BB+/P  395,000  399,949 
5s, 9/2/30  BB+/P  250,000  252,805 
Chula Vista, Cmnty. Fac. Dist. Special Tax Bonds (No.       
08-1 Otay Ranch Village Six), 6s, 9/1/33  BB/P  1,250,000  1,299,438 
Chula Vista, Cmnty. Fac. Dist. Special Tax Rev. Bonds       
(No. 07-1 Otay Ranch Village Eleven)       
5 7/8s, 9/1/34  BB/P  300,000  315,981 
5.8s, 9/1/28  BB/P  300,000  316,704 
Chula Vista, Indl. Dev. Rev. Bonds (San Diego Gas),       
Ser. B, 5s, 12/1/27  A1  950,000  987,801 
Corona, COP (Vista Hosp. Syst.), zero %, 7/1/29 (In       
default) (F)(NON)  D/P  10,775,000  118,525 
Folsom, Special Tax Rev. Bonds (Cmnty. Facs. Dist. No.       
10), 5 7/8s, 9/1/28  BB/P  750,000  776,498 
Gilroy, Rev. Bonds (Bonfante Gardens Park), 8s, 11/1/25  B-/P  770,000  697,505 
Golden State Tobacco Securitization Corp. Rev. Bonds       
Ser. 03-A1, 6 3/4s, 6/1/39  BBB  850,000  972,230 
Ser. B, FHLMC Coll., 5 5/8s, 6/1/38 (Prerefunded)  AAA  2,500,000  2,746,775 
Ser. 03 A-1, 5s, 6/1/21  BBB  615,000  616,611 
Jurupa, Cmnty. Svcs. Dist. Special Tax (Dist. No. 19       
Eastvale), 5s, 9/1/27  BB/P  500,000  501,150 
Murrieta, Cmnty. Fac. Dist. Special Tax (No. 2       
The Oaks Impt. Area A), 6s, 9/1/34  BB+/P  1,100,000  1,150,952 
Orange Cnty., Cmnty. Fac. Dist. Special Tax Bonds (No.       
02-1 Ladera Ranch), Ser. A, 5.55s, 8/15/33  BBB/P  650,000  665,496 
Poway, Unified School Dist. Cmnty. Facs. Special Tax       
Bonds (Dist. No. 14- Area A), 5 1/8s, 9/1/26  BB-/P  850,000  865,742 
Roseville, Special Tax (Fiddyment Ranch Cmnty. Fac),       
5s, 9/1/18  BB/P  675,000  682,655 
Roseville, Cmnty. Fac. Special Tax (Dist. No. 1       
-Westpark)       
5 1/4s, 9/1/25  BB/P  315,000  322,188 
5 1/4s, 9/1/17  BB/P  985,000  1,014,757 
Roseville, Cmnty. Fac. Special Tax Bonds (Dist. No.       
1), 5s, 9/1/14  BB/P  400,000  408,580 
Sacramento, Special Tax (North Natomas Cmnty. Fac.),       
Ser. 4-C, 6s, 9/1/33  BBB/P  1,250,000  1,339,175 
San Diego, Assn. of Bay Area Governments Fin. Auth.       
For Nonprofit Corps. Rev. Bonds (San Diego Hosp.),       
Ser. A, 6 1/8s, 8/15/20  Baa1  250,000  270,083 
Santaluz, Cmnty. Facs. Dist. No. 2 Special Tax Rev.       
Bonds (Impt. Area No. 1), Ser. B, 6 3/8s, 9/1/30  BBB/P  2,455,000  2,476,187 
Thousand Oaks, Cmnty. Fac. Dist. Special Tax Rev.       
Bonds (Marketplace 94-1), zero %, 9/1/14  B/P  2,960,000  1,748,975 
Vallejo, COP (Marine World Foundation), 7.2s, 2/1/26  BBB-/P  2,500,000  2,571,775 
      58,430,202 

 
Colorado (2.2%)       
CO Hlth. Fac. Auth. Rev. Bonds       
(Christian Living Cmntys.), Ser. A, 5 3/4s, 1/1/26  BB-/P  200,000  209,762 
(Evangelical Lutheran), 5 1/4s, 6/1/23  A-  1,000,000  1,058,870 
(Evangelical Lutheran), 5 1/4s, 6/1/21  A3  660,000  701,441 
(Evangelical Lutheran), 5 1/4s, 6/1/19  A3  420,000  447,695 
CO Pub. Hwy. Auth. Rev. Bonds (E-470 Pub. Hwy.), Ser. B       
zero %, 9/1/35 (Prerefunded)  Aaa  15,500,000  2,043,675 
zero %, 9/1/34 (Prerefunded)  Aaa  16,500,000  2,347,290 
Denver, City & Cnty. Arpt. Rev. Bonds, Ser. D, AMBAC,       
7 3/4s, 11/15/13  AAA  1,050,000  1,179,371 
      7,988,104 

 
Delaware (1.0%)       
GMAC Muni. Mtge. Trust 144A sub. notes, Ser. A1-3,       
5.3s, 10/31/39  A3  2,500,000  2,627,650 
New Castle Cnty., Rev. Bonds       
(Newark Charter School, Inc.), 5s, 9/1/36  BBB-  300,000  304,320 
(Newark Charter School, Inc.), 5s, 9/1/30  BBB-  300,000  305,472 
Sussex Cnty., Rev. Bonds (First Mtge. - Cadbury       
Lewes), Ser. A, 5.9s, 1/1/26  B/P  350,000  364,322 
      3,601,764 

 
District of Columbia (0.5%)       
DC Tobacco Settlement Fin. Corp. Rev. Bonds, 6 1/4s,       
5/15/24  BBB  1,900,000  2,028,345 

 
Florida (9.6%)       
CFM Cmnty. Dev. Dist. Rev. Bonds, Ser. A, 6 1/4s,       
5/1/35  BB-/P  1,500,000  1,606,170 
Clearwater Cay, Cmnty. Dev. Dist. Special Assmt.       
Bonds, Ser. A, 5 1/2s, 5/1/37  BB-/P  1,600,000  1,618,912 
Fishhawk, Cmnty. Dev. Dist. II Rev. Bonds       
Ser. A, 6 1/8s, 5/1/34  BB/P  485,000  512,926 
Ser. B, 5s, 11/1/07  BB/P  40,000  40,022 
FL Hsg. Fin. Corp. Rev. Bonds, Ser. G, 5 3/4s, 1/1/37  Aa1  1,500,000  1,607,805 
FL State Mid-Bay Bridge Auth. Rev. Bonds, Ser. A,       
6.05s, 10/1/22  BBB/P  770,000  797,374 
Fleming Island, Plantation Cmnty. Dev. Dist. Special       
Assmt. Bonds, Ser. B, 7 3/8s, 5/1/31  BB/P  750,000  799,013 
Gateway Svcs. Cmnty., Dev. Dist. Special Assmt. Bonds       


(Stoneybrook), 5 1/2s, 7/1/08  BB/P  85,000  85,383 
Halifax, Hosp. Med. Ctr. Rev. Bonds, Ser. A, 5 1/4s,       
6/1/21  BBB+  3,200,000  3,375,904 
Heritage Harbor, South Cmnty. Dev. Distr. Rev. Bonds,       
Ser. A, 6 1/2s, 5/1/34  BB+/P  480,000  517,118 
Heritage Isle at Viera, Cmnty. Dev. Dist. Special       
Assmt., Ser. B, 5s, 11/1/09  BB/P  150,000  149,420 
Highlands Cnty., Hlth. Fac. Auth. Rev. Bonds       
(Adventist Hlth.), Ser. A, 5s, 11/15/21  A+  1,000,000  1,046,200 
(Hosp. Adventist Hlth.), Ser. A, 5s, 11/15/20  A+  1,000,000  1,046,200 
Islands at Doral III, Cmnty. Dev. Dist. Special Assmt.       
Bonds, Ser. 04-A, 5.9s, 5/1/35  BB/P  1,230,000  1,274,600 
Lee Cnty., Indl. Dev. Auth. Rev. Bonds (Alliance       
Cmnty.), Ser. C, 5 1/2s, 11/15/29  BBB-  1,000,000  1,025,640 
Lee Cnty., Indl. Dev. Auth. Hlth. Care Rev. Bonds       
(Shell Pt./Alliance Oblig. Group), 5 1/8s, 11/15/36  BBB-  475,000  483,560 
Miami Beach, Hlth. Fac. Auth. Hosp. Rev. Bonds (Mount       
Sinai Med. Ctr.), Ser. A, 6.7s, 11/15/19  Ba1  1,335,000  1,465,843 
North Springs, Impt. Dist. Special Assmt. Rev. Bonds       
(Parkland Golf Country Club), Ser. A-1, 5.45s, 5/1/26  BB-/P  250,000  253,288 
Old Palm, Cmnty. Dev. Dist. Special Assmt. Bonds (Palm       
Beach Gardens), Ser. A, 5.9s, 5/1/35  BB-/P  985,000  1,026,912 
Palm Coast Pk. Cmnty. Dev. Dist. Special Assmt. Bonds,       
5.7s, 5/1/37  BB-/P  1,000,000  1,018,250 
Reunion West, Cmnty. Dev. Dist. Special Assmt. Bonds,       
6 1/4s, 5/1/36  BB-/P  1,500,000  1,579,590 
South Bay, Cmnty. Dev. Dist. Rev. Bonds, Ser. B-2,       
5 3/8s, 5/1/13  BB-/P  2,500,000  2,512,800 
South Miami, Hlth. Fac. Auth. Rev. Bonds (Baptist       
Hlth.), 5 1/4s, 11/15/33  Aa3  1,500,000  1,565,685 
South Village, Cmnty. Dev. Dist. Rev. Bonds, Ser. A,       
5.7s, 5/1/35  BB-/P  495,000  508,528 
Tampa Bay, Cmnty. Dev. Dist. Special Assmt. Bonds (New       
Port), Ser. A, 5 7/8s, 5/1/38  BB-/P  1,975,000  2,032,216 
Tern Bay, Cmnty. Dev. Dist. Special Assmt. Bonds       
Ser. A, 5 3/8s, 5/1/37  BB-/P  1,150,000  1,163,984 
Ser. B, 5s, 5/1/15  BB-/P  500,000  497,295 
Tolomato, Cmnty. Dev. Dist. Special Assmt. Bonds,       
5.4s, 5/1/37  BB-/P  325,000  328,416 
Verano Ctr. Cmnty. Dev. Dist. Special Assmt. Bonds,       
(Cmnty. Infrastructure)       
Ser. B, 5s, 11/1/13  BB-/P  475,000  473,086 
Ser. A, 5 3/8s, 5/1/37  BB-/P  750,000  752,753 
Wentworth Estates, Cmnty. Dev. Dist. Special Assmt.       
Bonds       
Ser. A, 5 5/8s, 5/1/37  BB-/P  725,000  742,444 
Ser. B, 5 1/8s, 11/1/12  BB-/P  845,000  843,479 
Westchester Cmnty. Dev. Dist. No. 1 Special Assmt.       
(Cmnty. Infrastructure), 6 1/8s, 5/1/35  BB-/P  1,250,000  1,325,850 
World Commerce Cmnty. Dev. Dist. Special Assmt., Ser.       
A-1       
6 1/2s, 5/1/36  BB-/P  950,000  1,014,752 
6 1/4s, 5/1/22  BB-/P  550,000  584,084 
      35,675,502 

 
Georgia (2.4%)       
Burke Cnty., Poll. Control Dev. Auth. Mandatory Put       
Bonds (GA Power Co.), 4.45s, 12/1/08  A2  4,000,000  4,033,920 
Fulton Cnty., Res. Care Fac. Rev. Bonds       
(Canterbury Court), Class A, 6 1/8s, 2/15/34  B+/P  425,000  446,828 
(First Mtge. - Lenbrook), Ser. A, 5s, 7/1/17  B/P  1,370,000  1,362,369 
GA Med. Ctr. Hosp. Auth. Rev. Bonds, MBIA, 6.367s,       
8/1/10  Aaa  1,400,000  1,403,220 
Rockdale Cnty., Dev. Auth. Solid Waste Disp. Rev.       
Bonds (Visay Paper, Inc.), 7.4s, 1/1/16  B+/P  1,820,000  1,827,771 
      9,074,108 

 
Hawaii (0.5%)       
HI Dept. of Trans. Special Fac. Rev. Bonds       
(Continental Airlines, Inc.), 7s, 6/1/20  B  1,635,000  1,749,221 

 
Idaho (0.6%)       
ID Hsg. & Fin. Assn. Rev. Bonds (Single Fam. Mtge.),       
Ser. C-2, FHA Insd., 5.15s, 7/1/29  Aaa  740,000  746,608 
Madison Cnty., Hosp. COP, 5 1/4s, 9/1/20  BBB-  1,480,000  1,577,369 
      2,323,977 

 
Illinois (3.9%)       
Bedford Pk., Village Rev. Bonds (Hotel/Motel Tax),       
Ser. A, 4.9s, 12/1/23  Baa1  600,000  607,680 
Chicago, G.O. Bonds, Ser. A, AMBAC       
5 5/8s, 1/1/39 (Prerefunded)  Aaa  3,395,000  3,695,050 
5 5/8s, 1/1/39  Aaa  105,000  112,689 
Du Page Cnty., Special Svc. Area No. 31 Special Tax       
Bonds (Monarch Landing)       
5 5/8s, 3/1/36  BB-/P  100,000  104,435 
5.4s, 3/1/16  BB-/P  260,000  268,902 
IL Dev. Fin. Auth. Hosp. Rev. Bonds (Adventist Hlth.       
Syst./Sunbelt Obligation), 5.65s, 11/15/24       


(Prerefunded)  A2  3,250,000  3,428,230 
IL Fin. Auth. Rev. Bonds       
(Three Crowns Pk. Plaza), Ser. A, 5 7/8s, 2/15/26  B+/P  1,000,000  1,042,270 
(Landing At Plymouth Place), Ser. A, 5.35s, 5/15/15  B+/P  600,000  606,744 
IL Fin. Auth. Solid Waste Disposal (Waste Mgmt.,       
Inc.), Ser. A, 5.05s, 8/1/29  BBB  250,000  256,138 
IL Hlth. Fac. Auth. Rev. Bonds (St. Benedict), Ser.       
03A-1, 6.9s, 11/15/33  B/P  500,000  541,095 
IL State Toll Hwy. Auth. Rev. Bonds, Ser. A-1, FSA,       
5s, 1/1/23  Aaa  3,750,000  3,996,000 
      14,659,233 

 
Indiana (0.8%)       
IN State Dev. Fin. Auth. Env. Impt. Rev. Bonds (USX       
Corp.), 5.6s, 12/1/32  Baa1  2,500,000  2,596,300 
St. Joseph Cnty., Econ. Dev. Rev. Bonds (Holy Cross       
Village Notre Dame), Ser. A, 5 3/4s, 5/15/15  B/P  455,000  478,018 
      3,074,318 

 
Iowa (2.8%)       
IA Rev. Bonds (Care Initiatives), Ser. A, 5s, 7/1/19  BBB-  1,840,000  1,853,653 
IA Fin. Auth. Hlth. Care Fac. Rev. Bonds (Care       
Initiatives)       
9 1/4s, 7/1/25 (Prerefunded)  AAA  2,565,000  3,140,996 
9.15s, 7/1/09 (Prerefunded)  AAA  880,000  945,102 
Ser. A, 5 1/4s, 7/1/17  BBB-  1,040,000  1,077,430 
IA Fin. Auth. Retirement Cmnty. Rev. Bonds (Friendship       
Haven), Ser. A       
6 1/8s, 11/15/32  BB/P  200,000  207,120 
6s, 11/15/24  BB/P  200,000  204,330 
Tobacco Settlement Auth. of IA Rev. Bonds       
Ser. C, 5 3/8s, 6/1/38  BBB  750,000  781,860 
Ser. B, zero %, 6/1/34  BBB  2,250,000  2,266,785 
      10,477,276 

 
Kansas (0.4%)       
Salina, Hosp. Rev. Bonds (Salina Regl. Hlth.)       
5s, 10/1/17  A1  500,000  530,900 
5s, 10/1/16  A1  605,000  644,283 
5s, 10/1/15  A1  250,000  266,430 
      1,441,613 

 
Kentucky (0.5%)       
KY Econ. Dev. Fin. Auth. Hlth. Syst. Rev. Bonds       
(Norton Hlth. Care), Ser. A       
6 1/2s, 10/1/20  A-/F  1,040,000  1,123,626 
6 1/2s, 10/1/20 (Prerefunded)  AAA/P  675,000  743,708 
      1,867,334 

 
Louisiana (1.4%)       
LA Local Govt. Env. Fac. Cmnty. Dev. Auth. Rev. Bonds       
(Hlth. Care - St. James Place), Ser. A, 7s, 11/1/26  B-/P  400,000  408,804 
(St. James Place), Ser. A, 7s, 11/1/20  B-/P  1,000,000  1,027,340 
LA Pub. Fac. Auth. Rev. Bonds (Pennington Med.       
Foundation), 5s, 7/1/16  A3  600,000  629,436 
Tangipahoa Parish Hosp. Svcs. Rev. Bonds (North Oaks       
Med. Ctr.), Ser. A, 5s, 2/1/25  A  500,000  513,915 
W. Feliciana Parish, Poll. Control Rev. Bonds (Gulf       
States Util. Co.), Ser. C, 7s, 11/1/15  BBB-  2,750,000  2,758,745 
      5,338,240 

 
Maine (1.0%)       
ME State Hsg. Auth. Rev. Bonds, Ser. D-2-AMT, 5s,       
11/15/27  Aa1  1,455,000  1,472,649 
Rumford, Solid Waste Disp. Rev. Bonds (Boise Cascade       
Corp.), 6 7/8s, 10/1/26  Ba3  2,000,000  2,198,580 
      3,671,229 

 
Maryland (1.4%)       
MD State Hlth. & Higher Edl. Fac. Auth. Rev. Bonds       
(Medstar Hlth.), 5 3/4s, 8/15/15  A3  1,000,000  1,093,070 
(King Farm Presbyterian Cmnty.), Ser. A, 5 1/4s, 1/1/27  B/P  710,000  721,481 
(Edenwald), Ser. A, 5.2s, 1/1/24  BB/P  300,000  309,213 
(King Farm Presbyterian Cmnty.), Ser. B, 4 3/4s, 1/1/13  B/P  1,000,000  997,920 
MD State Indl. Dev. Fin. Auth. Econ. Dev. Rev. Bonds       
(Our Lady of Good Counsel School), Ser. A, 6s, 5/1/35  B/P  200,000  213,492 
Westminster, Econ. Dev. Rev. Bonds (Carroll Lutheran       
Village), Ser. A, 5 7/8s, 5/1/21  BB/P  1,850,000  1,919,838 
      5,255,014 

 
Massachusetts (9.1%)       
Boston, Indl. Dev. Fin. Auth. Rev. Bonds (Springhouse,       
Inc.), 6s, 7/1/28  BB-/P  600,000  610,092 
MA State Dev. Fin. Agcy. Rev. Bonds (Lasell Village),       
Ser. A, 6 3/8s, 12/1/25  BB-/P  570,000  579,473 
MA State Dev. Fin. Agcy. Higher Ed. Rev. Bonds       
(Emerson College), Ser. A, 5s, 1/1/18  A-  420,000  447,682 
MA State Hlth. & Edl. Fac. Auth. Rev. Bonds       


(Civic Investments/HPHC), Ser. A, 9s, 12/15/15  BBB-/P  1,845,000  2,269,904 
(Norwood Hosp.), Ser. C, 7s, 7/1/14 (Prerefunded)  Ba2  1,185,000  1,394,070 
(Jordan Hosp.), Ser. E, 6 3/4s, 10/1/33  BBB-  1,200,000  1,313,424 
(UMass Memorial), Ser. C, 6 5/8s, 7/1/32  Baa2  2,225,000  2,442,650 
(UMass Memorial), Ser. C, 6 1/2s, 7/1/21  Baa2  1,875,000  2,045,925 
(Caritas Christi Oblig. Group), Ser. A, 5 1/4s, 7/1/08  BBB  1,500,000  1,518,975 
(Partners Hlth. Care Syst.), Ser. F, 5s, 7/1/21  Aa2  1,000,000  1,058,310 
MA State Hsg. Fin. Agcy. Rev. Bonds (Rental Mtge.)       
Ser. C, AMBAC, 5 5/8s, 7/1/40  Aaa  2,000,000  2,034,940 
Ser. A, AMBAC, 5 1/2s, 7/1/40  Aaa  15,290,000  15,588,614 
MA State Indl. Fin. Agcy. Rev. Bonds       
(1st Mtge. Stone Institution & Newton), 7.9s, 1/1/24  BB-/P  500,000  503,290 
(TNG Marina Bay LLC), U.S. Govt. Coll., 7 1/2s,       
12/1/27 (Prerefunded)  AAA  580,000  614,411 
(1st Mtge. Berkshire Retirement), Ser. A, 6 5/8s,       
7/1/16  BBB-  1,550,000  1,554,015 
      33,975,775 

 
Michigan (4.5%)       
Detroit, Swr. Disp. FRN, Ser. D, FSA, 4.191s, 7/1/32  Aaa  2,500,000  2,503,250 
Detroit, Swr. Disp. VRDN, Ser. B, FSA, 3.70s, 7/1/33       
(Prerefunded)  VMIG1  700,000  700,000 
Flint, Hosp. Bldg. Auth. Rev. Bonds (Hurley Med.       
Ctr.), 6s, 7/1/20  Ba1  275,000  289,438 
Garden City, Hosp. Fin. Auth. Rev. Bonds (Garden City       
Hosp. OB Group), Ser. A, 5 3/4s, 9/1/17  Ba1  350,000  356,188 
Kentwood, Economic Dev. Rev. Bonds (Holland Home),       
Ser. A, 5s, 11/15/22  BB-/P  300,000  302,004 
MI State Hosp. Fin. Auth. Rev. Bonds       
(Oakwood Hosp.), Ser. A, 6s, 4/1/22  A2  1,500,000  1,627,245 
Ser. A, 5s, 4/15/26  A1  2,665,000  2,766,297 
(Chelsea Cmnty. Hosp. Oblig.), 5s, 5/15/25  BBB  755,000  768,779 
MI State Hsg. Dev. Auth. Rev. Bonds, Ser. A, 3.9s,       
6/1/30  AA+  1,500,000  1,492,905 
Midland Cnty., Econ. Dev. Corp. Rev. Bonds, 6 3/4s,       
7/23/09  Ba3  1,500,000  1,541,115 
Monroe Cnty., Hosp. Fin. Auth. Rev. Bonds (Mercy       
Memorial Hosp.), 5 1/2s, 6/1/20  Baa3  1,000,000  1,059,750 
Warren Cons. School Dist. G.O. Bonds, FSA, 5 3/8s,       
5/1/18 (Prerefunded)  Aaa  2,975,000  3,177,598 
      16,584,569 

 
Minnesota (2.5%)       
Cohasset, Poll. Control Rev. Bonds (Allete, Inc.),       
4.95s, 7/1/22  A  2,000,000  2,044,680 
Inver Grove Heights, Nursing Home Rev. Bonds       
(Presbyterian Homes Care), 5 3/8s, 10/1/26  B/P  500,000  505,115 
MN Agricultural & Econ. Dev. Board Rev. Bonds (Hlth.       
Care Syst.), Ser. A, MBIA, 5 1/2s, 11/15/17       
(Prerefunded)  Aaa  2,390,000  2,471,810 
MN State Hsg. Fin. Agcy. Rev. Bonds (Residential       
Hsg.), Ser. H, 4.15s, 1/1/12  Aa1  760,000  758,974 
Northfield, Hosp. Rev. Bonds, 5 1/2s, 11/1/18  BBB-  1,140,000  1,217,873 
Sauk Rapids Hlth. Care & Hsg. Fac. Rev. Bonds (Good       
Shepherd Lutheran Home), 6s, 1/1/34  B+/P  400,000  411,108 
St. Paul, Hsg. & Redev. Auth. Hosp. Rev. Bonds       
(Healtheast), 6s, 11/15/25  Baa3  1,000,000  1,099,480 
St. Paul, Port Auth. Lease Rev. Bonds (Regions Hosp.       
Pkg. Ramp), Ser. 1, 5s, 8/1/36  BBB-/P  625,000  627,813 
      9,136,853 

 
Mississippi (1.2%)       
Lowndes Cnty., Solid Waste Disp. & Poll. Control Rev.       
Bonds (Weyerhaeuser Co.), Ser. B, 6.7s, 4/1/22  Baa2  1,500,000  1,806,090 
MS Bus. Fin. Corp. Poll. Control Rev. Bonds (Syst.       
Energy Resources, Inc.), 5.9s, 5/1/22  BBB-  1,250,000  1,260,425 
MS Home Corp. Rev. Bonds (Single Fam. Mtge.), Ser.       
B-2, GNMA Coll., FNMA Coll., 6.45s, 12/1/33  Aaa  945,000  976,648 
MS Hosp. Equip. & Fac. Auth. Rev. Bonds (Hosp. South       
Central), 5 1/4s, 12/1/21  BBB+  250,000  264,330 
      4,307,493 

 
Missouri (3.4%)       
Cape Girardeau Cnty., Indl. Dev. Auth. Hlth. Care Fac.       
Rev. Bonds (St. Francis Med. Ctr.), Ser. A, 5 1/2s,       
6/1/32  A+  1,750,000  1,859,095 
Kansas City, Indl. Dev. Auth. Hlth. Fac. Rev. Bonds       
(First Mtge. Bishop Spencer), Ser. A, 6 1/2s, 1/1/35  BB-/P  1,500,000  1,572,510 
MO Hsg. Dev. Comm. Rev. Bonds (Home Ownership), Ser.       
B, GNMA Coll., FNMA Coll.       
4.4s, 9/1/14  AAA  420,000  422,948 
4.3s, 9/1/13  AAA  410,000  412,087 
MO State Hlth. & Edl. Fac. Auth. Rev. Bonds (BJC Hlth.       
Syst.), 5 1/4s, 5/15/32  Aa2  1,450,000  1,516,062 
MO State Hlth. & Edl. Fac. Auth. VRDN (Cox Hlth.       
Syst.), AMBAC, 3.74s, 6/1/22  VMIG1  2,900,000  2,900,000 
MO State Hsg. Dev. Comm. Mtge. Rev. Bonds (Single Fam.       
Home Ownership Loan)       
Ser. B, GNMA Coll., FNMA Coll., 5.8s, 9/1/35  AAA  2,500,000  2,660,125 


Ser. D, GNMA Coll., FNMA Coll., 5.55s, 9/1/34  Aaa  1,335,000  1,363,489 
      12,706,316 

 
Montana (0.1%)       
MT Fac. Fin. Auth. Rev. Bonds (Sr. Living St. Johns       
Lutheran), Ser. A, 6s, 5/15/25  B+/P  350,000  366,174 

 
Nebraska (--%)       
Kearney, Indl. Dev. Rev. Bonds       
(Great Platte River), 8s, 9/1/12  D/P  61,716  46,484 
(Brookhaven), zero %, 9/1/12  D/P  791,466  7,915 
      54,399 

 
Nevada (3.5%)       
Clark Cnty., Impt. Dist. Special Assmt.       
(Dist. No. 142), 6 3/8s, 8/1/23  BB-/P  1,000,000  1,035,430 
(Summerlin No. 151), 5s, 8/1/16  BB/P  1,010,000  1,035,391 
Clark Cnty., Indl. Dev. Rev. Bonds (Southwest Gas       
Corp.), Ser. C, AMBAC, 5.95s, 12/1/38  Aaa  5,000,000  5,412,400 
Henderson, Local Impt. Dist. Special Assmt.       
(No. T-14), 5.8s, 3/1/23  BB/P  450,000  463,748 
(No. T-16), 5 1/8s, 3/1/25  BB-/P  500,000  502,210 
(No. T-17), 5s, 9/1/18  BB/P  275,000  279,909 
(No. T-18), 5s, 9/1/16  BB-/P  1,425,000  1,466,453 
Las Vegas, Local Impt. Board Special Assmt. (Dist. No.       
607), 5.9s, 6/1/18  BB-/P  875,000  902,318 
Washoe Cnty., Wtr. Fac. Mandatory Put Bonds (Sierra       
Pacific Pwr. Co.), 5s, 7/1/09  Ba1  2,000,000  2,018,040 
      13,115,899 

 
New Hampshire (1.7%)       
NH Higher Edl. & Hlth. Fac. Auth. Rev. Bonds       
(Riverwoods at Exeter), Ser. A, 6 3/8s, 3/1/13  BBB-/P  590,000  600,874 
NH Hlth. & Ed. Fac. Auth. Rev. Bonds (Kendal       
at Hanover), Ser. A, 5s, 10/1/18  BBB+  1,275,000  1,316,654 
NH State Bus. Fin. Auth. Rev. Bonds (Alice Peck Day       
Hlth. Syst.), Ser. A, 7s, 10/1/29  BBB-/P  2,565,000  2,697,816 
NH State Bus. Fin. Auth. Poll. Control Rev. Bonds,       
3 1/2s, 7/1/27  Baa2  1,750,000  1,726,515 
      6,341,859 

 
New Jersey (3.8%)       
NJ Econ. Dev. Auth. Rev. Bonds       
(Cedar Crest Village, Inc.), Ser. A, 7 1/4s, 11/15/31       
(Prerefunded)  AAA/P  1,250,000  1,443,588 
(Newark Arpt. Marriot Hotel), 7s, 10/1/14  Ba1  1,900,000  1,931,293 
(First Mtge. Presbyterian Home), Ser. A, 6 3/8s,       
11/1/31  BB/P  500,000  527,005 
(First Mtge. Lions Gate), Ser. A, 5 7/8s, 1/1/37  B/P  230,000  238,393 
(Cigarette Tax), 5 1/2s, 6/15/24  Baa2  2,500,000  2,609,300 
(Seabrook Village), 5 1/4s, 11/15/26  BB-/P  400,000  407,968 
NJ Econ. Dev. Auth. Solid Waste Rev. Bonds (Disp.       
Waste Mgt.), 5.3s, 6/1/15  BBB  1,750,000  1,836,398 
NJ Hlth. Care Fac. Fin. Auth. Rev. Bonds       
(Trinitas Hosp. Oblig. Group), 7 1/2s, 7/1/30  Baa3  1,300,000  1,427,348 
(United Methodist Homes), Ser. A, 5 3/4s, 7/1/29  BB+  2,250,000  2,297,880 
(Atlantic City Med. Ctr.), 5 3/4s, 7/1/25  A2  1,250,000  1,324,175 
      14,043,348 

 
New Mexico (1.2%)       
Farmington, Poll. Control Rev. Bonds (San Juan), Ser.       
B, 4 7/8s, 4/1/33  Baa2  1,200,000  1,217,700 
Farmington, Poll. Control VRDN (AZ Pub. Svc. Co.),       
Ser. A, 3.73s, 5/1/24  P-1  2,100,000  2,100,000 
NM Mtge. Fin. Auth. Rev. Bonds (Single Fam. Mtge.)       
Ser. D-2, GNMA Coll., FNMA Coll., FHLMC Coll., 5.64s,       
9/1/33  AAA  460,000  472,273 
Ser. F2, Class I, GNMA Coll., FNMA Coll., FHLMC Coll.,       
5.6s, 7/1/38  AAA  500,000  535,390 
      4,325,363 

 
New York (14.9%)       
Huntington, Hsg. Auth. Rev. Bonds (Gurwin Jewish Sr.       
Residence), Ser. A, 6s, 5/1/39  B+/P  500,000  511,560 
Livingston Cnty., Indl. Dev. Agcy. Civic Fac. Rev.       
Bonds (Nicholas H. Noyes Memorial Hosp.), 5 3/4s,       
7/1/15  BB  1,330,000  1,368,357 
Long Island, Pwr. Auth. NY Elec. Syst. Rev. Bonds,       
Ser. A, U.S. Govt. Coll., 5 3/4s, 12/1/24 (Prerefunded)  AAA  2,000,000  2,073,480 
Nassau Cnty., Indl. Dev. Agcy. Rev. Bonds       
(Keyspan-Glenwood), 5 1/4s, 6/1/27  A  2,000,000  2,081,620 
NY City, G.O. Bonds, Ser. B, 5 1/4s, 12/1/09  AA-  10,000,000  10,375,900 
NY City, Indl. Dev. Agcy. Rev. Bonds       
(Staten Island U. Hosp. Project), 6.45s, 7/1/32  B2  1,480,000  1,558,677 
(Liberty-7 World Trade Ctr.), Ser. A, 6 1/4s, 3/1/15  B-/P  1,275,000  1,356,128 
(Queens Baseball Stadium - Pilot), AMBAC, 5s, 1/1/21  Aaa  750,000  802,575 
NY City, Indl. Dev. Agcy. Special Fac. FRB (American       
Airlines - JFK Intl. Arpt.), 7 5/8s, 8/1/25  B  1,250,000  1,532,113 


NY City, Indl. Dev. Agcy. Special Fac. Rev. Bonds       
(American Airlines - JFK Intl. Arpt.), 7 1/2s, 8/1/16  B  3,400,000  4,037,262 
(British Airways PLC), 5 1/4s, 12/1/32  Ba2  2,425,000  2,428,128 
(Jetblue Airways Corp.), 5s, 5/15/20  B  225,000  223,045 
NY Cntys., Tobacco Trust IV Rev. Bonds, Ser. A, 5s,       
6/1/38  BBB  1,000,000  1,011,470 
NY State Dorm. Auth. Rev. Bonds       
(Winthrop-U. Hosp. Assn.), Ser. A, 5 1/2s, 7/1/32  Baa1  900,000  948,537 
(Lenox Hill Hosp. Oblig. Group), 5 1/4s, 7/1/09  Ba2  1,000,000  1,022,830 
(NY U. Hosp. Ctr.), Ser. A, 5s, 7/1/20  Ba2  500,000  516,265 
NY State Energy Research & Dev. Auth. Gas Fac. Rev.       
Bonds (Brooklyn Union Gas), 6.952s, 7/1/26  A+  2,400,000  2,452,416 
Onondaga Cnty., Indl. Dev. Agcy. Rev. Bonds (Solvay       
Paperboard, LLC), 7s, 11/1/30 (acquired 12/9/98, cost       
$2,000,000) (RES)  BB/P  2,000,000  2,084,940 
Port. Auth. NY & NJ Special Oblig. Rev. Bonds (Kennedy       
Intl. Arpt. - 5th Installment), 6 3/4s, 10/1/19  BB+/P  200,000  202,530 
Port. Auth. NY & NJ Special Oblig. Rev. Bonds (JFK       
Intl. Air Term. - 6), MBIA, 5.9s, 12/1/17  Aaa  15,000,000  15,531,300 
Suffolk Cnty., Indl. Dev. Agcy. Rev. Bonds (Peconic       
Landing), Ser. A, 8s, 10/1/30  B+/P  1,700,000  1,860,072 
Suffolk Cnty., Indl. Dev. Agcy. Continuing Care       
Retirement Rev. Bonds       
(Jeffersons Ferry), 5s, 11/1/15  BBB-  450,000  469,053 
(Jefferson's Ferry), 4 5/8s, 11/1/16  BBB-  1,000,000  1,013,650 
      55,461,908 

 
North Carolina (6.5%)       
NC Eastern Muni. Pwr. Agcy. Syst. Rev. Bonds       
Ser. D, 6 3/4s, 1/1/26  Baa2  1,500,000  1,627,980 
Ser. A, 5 3/4s, 1/1/26  Baa2  3,000,000  3,151,470 
NC Hsg. Fin. Agcy. Rev. Bonds (Homeownership), Ser.       
26, Class A, 5 1/2s, 1/1/38  Aa2  1,000,000  1,061,080 
NC Med. Care Cmnty. Healthcare Fac. Rev. Bonds       
(Deerfield), Ser. A, 5s, 11/1/23  A/F  750,000  779,198 
NC Med. Care Cmnty. Hlth. Care Fac. Rev. Bonds       
(Presbyterian Homes), 5.4s, 10/1/27  BB/P  2,000,000  2,068,280 
(Pines at Davidson), Ser. A, 5s, 1/1/16  A/F  545,000  579,591 
(Novant Hlth. Oblig. Group), Ser. A, 5s, 11/1/14  Aa3  10,000,000  10,627,500 
(Pines at Davidson), Ser. A, 4.85s, 1/1/26  A/F  1,270,000  1,313,574 
NC Med. Care Comm. Retirement Fac. Rev. Bonds       
(First Mtge.), Ser. A-05, 5 1/2s, 10/1/35  BB+/P  1,040,000  1,061,393 
(First Mtge.), Ser. A-05, 5 1/4s, 10/1/25  BB+/P  600,000  609,786 
(First Mtge. United Methodist), Ser. C, 5 1/4s, 10/1/24  BB+/P  150,000  153,764 
NC State Muni. Pwr. Agcy. Rev. Bonds (No. 1, Catawba       
Elec.), Ser. B, 6 1/2s, 1/1/20  A3  1,000,000  1,079,090 
      24,112,706 

 
Ohio (2.3%)       
Coshocton Cnty., Env. Rev. Bonds (Smurfit-Stone       
Container Corp.), 5 1/8s, 8/1/13  CCC+  1,400,000  1,406,510 
Cuyahoga Cnty., Rev. Bonds, Ser. A       
6s, 1/1/16  Aa3  1,280,000  1,423,347 
6s, 1/1/15  AA-  2,000,000  2,227,560 
OH State Air Quality Dev. Auth. Rev. Bonds (Toledo       
Poll. Control), Ser. A, 6.1s, 8/1/27  Baa2  3,000,000  3,090,660 
      8,148,077 

 
Oklahoma (5.6%)       
OK City Arpt. Trust Rev. Bonds Jr. Lien 27th Ser.,       
Ser. A, FSA, 5s, 7/1/18  Aaa  3,150,000  3,254,328 
OK Dev. Fin. Auth. Rev. Bonds (Hillcrest Hlth. Care       
Syst.), Ser. A, U.S. Govt. Coll., 5 5/8s, 8/15/29       
(Prerefunded)  Aaa  1,575,000  1,657,562 
OK Hsg. Fin. Agcy. Single Family Mtge. Rev. Bonds       
(Homeownership Loan), Ser. C, GNMA Coll., FNMA Coll.,       
5.95s, 3/1/37  Aaa  3,000,000  3,243,120 
OK State Cap. Impt. Auth. State Facs. VRDN (Higher       
Ed.), Ser. D-1, CIFG, 3.74s, 7/1/31  VMIG1  5,200,000  5,200,000 
OK State Indl. Dev. Auth. Rev. Bonds (Hlth. Syst.),       
Ser. A, MBIA       
5 3/4s, 8/15/29  AAA  4,045,000  4,246,158 
5 3/4s, 8/15/29 (Prerefunded)  AAA  2,955,000  3,118,737 
      20,719,905 

 
Oregon (0.9%)       
Multnomah Cnty., Hosp. Fac. Auth. Rev. Bonds       
(Terwilliger Plaza)       
6 1/2s, 12/1/29  BB-/P  1,900,000  1,995,475 
Ser. A, 5 1/4s, 12/1/26  BB-/P  510,000  522,791 
OR State Hsg. & Cmnty. Svcs. Dept. Rev. Bonds (Single       
Family Mtge.), Ser. K, 5 5/8s, 7/1/29  Aa2  765,000  782,626 
      3,300,892 

 
Pennsylvania (6.6%)       
Allegheny Cnty., Hosp. Dev. Auth. Rev. Bonds (Hlth.       
Syst.), Ser. B, 9 1/4s, 11/15/15  Ba3  35,000  41,540 
Allegheny Cnty., Indl. Dev. Auth. Rev. Bonds (Env.       
Impt.), 5 1/2s, 11/1/16  Ba1  1,250,000  1,320,325 


Bucks Cnty., Indl. Dev. Auth. Retirement Cmnty. Rev.       
Bonds (Ann's Choice, Inc.), Ser. A       
6 1/8s, 1/1/25  BB/P  610,000  646,997 
5.3s, 1/1/14  BB/P  690,000  701,930 
5.2s, 1/1/13  BB/P  1,000,000  1,010,070 
Carbon Cnty., Indl. Dev. Auth. Rev. Bonds (Panther       
Creek Partners), 6.65s, 5/1/10  BBB-  1,560,000  1,615,895 
Erie-Western PA Port Auth. Rev. Bonds, 6 1/4s, 6/15/10  BB/F  505,000  514,034 
Lebanon Cnty., Hlth. Facs. Rev. Bonds (Pleasant View       
Retirement), Ser. A, 5.3s, 12/15/26  BB-/P  500,000  506,055 
Lehigh Cnty., Gen. Purpose Auth. Rev. Bonds (Lehigh       
Valley Hosp. Hlth. Network), Ser. A, 5 1/4s, 7/1/32  A1  1,000,000  1,045,400 
Monroe Cnty., Hosp. Auth. Rev. Bonds (Pocono Med.       
Ctr.), 6s, 1/1/43  BBB+  500,000  534,280 
Montgomery Cnty., Indl. Auth. Resource Recvy. Rev.       
Bonds (Whitemarsh Cont Care), 6 1/4s, 2/1/35  B/P  700,000  740,985 
PA State Econ. Dev. Fin. Auth. Resource Recvy. Rev.       
Bonds (Northampton Generating), Ser. A, 6.6s, 1/1/19  B+  4,200,000  4,263,336 
PA State Higher Edl. Fac. Auth. Rev. Bonds (Widener       
U.), 5.4s, 7/15/36  BBB+  1,000,000  1,052,120 
Philadelphia, Auth. for Indl. Dev. VRDN (Fox Chase       
Cancer Ctr.), 3.72s, 7/1/25  A-1+  8,500,000  8,500,000 
Philadelphia, Hosp. & Higher Ed. Fac. Auth. Rev. Bonds       
(Graduate Hlth. Syst.), 7 1/4s, 7/1/10 (In default)       
(NON)  Ca  2,729,624  5,459 
Sayre, Hlth. Care Fac. Auth. Rev. Bonds (Guthrie       
Hlth.), Ser. A, 5 7/8s, 12/1/31  A-  1,800,000  1,945,800 
      24,444,226 

 
Puerto Rico (0.5%)       
Cmnwlth. of PR, Hwy. & Trans. Auth. Rev. Bonds       
FGIC, 5 1/2s, 7/1/13  Aaa  1,035,000  1,136,016 
5s, 7/1/28  BBB  590,000  609,553 
      1,745,569 

 
South Carolina (2.4%)       
Lexington Cnty. Hlth. Svcs. Dist. Inc. Hosp. Rev.       
Bonds, 5 1/2s, 5/1/37  A2  1,000,000  1,067,490 
Richland Cnty., Rev. Bonds (Intl. Paper Co.), Ser. A,       
4 1/4s, 10/1/07  BBB  2,500,000  2,502,275 
SC Hosp. Auth. Rev. Bonds (Med. U.), Ser. A, 6 1/2s,       
8/15/32 (Prerefunded)  AAA  1,250,000  1,415,500 
SC Jobs Econ. Dev. Auth. Hosp. Fac. Rev. Bonds       
(Palmetto Hlth. Alliance), Ser. A, 7 3/8s, 12/15/21       
(Prerefunded)  BBB+/F  1,000,000  1,140,610 
SC Tobacco Settlement Rev. Mgmt. Auth. Rev. Bonds,       
Ser. B, 6s, 5/15/22  BBB  1,195,000  1,266,652 
SC Tobacco Settlement Rev. Mgmt. Auth. Rev. Bonds,       
Ser. B, 6 3/8s, 5/15/30  BBB  1,300,000  1,510,522 
      8,903,049 

 
South Dakota (0.7%)       
SD Edl. Enhancement Funding Corp. SD Tobaccco Rev.       
Bonds, Ser. B, 6 1/2s, 6/1/32  BBB  2,000,000  2,191,140 
SD Hsg. Dev. Auth. Rev. Bonds (Home Ownership Mtge.),       
Ser. J, 4 1/2s, 5/1/17  AAA  500,000  515,650 
      2,706,790 

 
Tennessee (2.6%)       
Johnson City, Hlth. & Edl. Fac. Board Hosp. Rev. Bonds       
(First Mtge. Mountain States Hlth.), Ser. A, 7 1/2s,       
7/1/33  BBB+  3,700,000  4,289,151 
(First Mtge. -Mountain States Hlth.), Ser. A, MBIA,       
6s, 7/1/21  Aaa  2,000,000  2,142,900 
Johnson City, Hlth. & Edl. Facs. Board Retirement Fac.       
Rev. Bonds (Appalachian Christian Village), Ser. A,       
6 1/4s, 2/15/32  BB-/P  600,000  624,966 
Shelby Cnty., Hlth. Edl. & Hsg. Fac. Hosp. Board Rev.       
Bonds (Methodist Hlth. Care)       
6 1/2s, 9/1/26 (Prerefunded)  AAA  1,255,000  1,422,329 
6 1/2s, 9/1/26 (Prerefunded)  AAA  745,000  844,331 
Sullivan Cnty., Hlth. Edl. & Hsg. Hosp. Fac. Board       
Rev. Bonds (Wellmont Hlth. Syst.), Ser. C, 5s, 9/1/22  BBB+  450,000  464,850 
      9,788,527 

 
Texas (8.7%)       
Abilene, Hlth. Fac. Dev. Corp. Rev. Bonds (Sears       
Methodist Retirement), Ser. A       
7s, 11/15/33  BB/P  600,000  650,538 
5 7/8s, 11/15/18  BB/P  20,000  20,305 
Alliance, Arpt. Auth. Rev. Bonds (Federal Express       
Corp.), 4.85s, 4/1/21 (SEG)  Baa2  3,000,000  3,035,220 
Carrollton, Farmers Branch Indpt. School Dist. G.O.       
Bonds, PSFG, 5s, 2/15/17  Aaa  4,655,000  4,820,625 
Dallas, Indpt. School Dist. G.O. Bonds, PSFG, 5 1/2s,       
2/15/16  Aaa  1,610,000  1,730,364 
Fort Worth, Higher Ed. Fin. Corp. Rev. Bonds (Wesleyan       
U.), Ser. A, 6s, 10/1/12  Ba2  550,000  553,707 
Harris Cnty., Rev. Bonds, Ser. B, FSA, 5s, 8/15/32  Aaa  5,500,000  5,806,570 


Harris Cnty., Hlth. Fac. Rev. Bonds (Memorial Hermann       
Hlth. Care), Ser. A, 6 3/8s, 6/1/29 (Prerefunded)  A+  3,000,000  3,325,470 
Houston, Arpt. Syst. Rev. Bonds (Continental Airlines,       
Inc.), Ser. C, 5.7s, 7/15/29  B-  2,500,000  2,562,450 
Sabine River Auth. Rev. Bonds (TXU Electric), Ser. C,       
5.2s, 5/1/28  Baa2  1,000,000  1,045,630 
Sam Rayburn Muni. Pwr. Agcy. Rev. Bonds, 6s, 10/1/21  Baa2  2,500,000  2,643,075 
Tarrant Cnty., Cultural Ed. Fac. Fin. Corp. Rev. Bonds       
(Northwest Sr. Hsg. Edgemere), Ser. A, 5 3/4s, 11/15/16  BB-/P  300,000  318,162 
Tomball, Hosp. Auth. Rev. Bonds (Tomball Regl. Hosp.)       
6s, 7/1/29  Baa3  2,000,000  2,080,440 
6s, 7/1/25  Baa3  800,000  833,848 
6s, 7/1/19  Baa3  800,000  834,960 
TX State Dept. of Hsg. & Cmnty. Affairs Rev. Bonds       
(Single Fam.), Ser. F, FHA Insd., 5 3/4s, 3/1/37  AAA  2,000,000  2,134,320 
      32,395,684 

 
Utah (1.1%)       
Carbon Cnty., Solid Waste Disp. Rev. Bonds (Laidlaw       
Env.), Ser. A       
7 1/2s, 2/1/10  BB-  750,000  757,268 
7.45s, 7/1/17  B+/P  600,000  618,882 
Tooele Cnty., Harbor & Term. Dist. Port Fac. Rev.       
Bonds (Union Pacific), Ser. A, 5.7s, 11/1/26  Baa2  1,500,000  1,559,895 
UT Cnty., Env. Impt. Rev. Bonds (Marathon Oil), 5.05s,       
11/1/17  Baa1  1,000,000  1,051,530 
      3,987,575 

 
Vermont (0.2%)       
VT Hsg. Fin. Agcy. Rev. Bonds, Ser. 19A, FSA, 4.62s,       
5/1/29  Aaa  820,000  825,625 

 
Virginia (1.8%)       
Henrico Cnty., Econ. Dev. Auth. Res. Care Fac. Rev.       
Bonds       
(VA Baptist Homes), Ser. A, 5 3/8s, 7/1/30  B+/P  500,000  512,715 
(VA Baptist Homes), Ser. A, 5 1/4s, 7/1/25  B+/P  250,000  255,095 
(Westminster-Canterbury), 5s, 10/1/22  BBB-  600,000  624,204 
Hopewell, Indl. Dev. Auth. Env. Impt. Rev. Bonds       
(Smurfit-Stone Container Corp.), 5 1/4s, 6/1/15  CCC+  500,000  506,655 
James Cnty., Indl. Dev. Auth. Rev. Bonds       
(Williamsburg), Ser. A, 6 1/8s, 3/1/32  BB-/P  1,000,000  1,065,920 
Lynchburg, Indl. Dev. Auth. Res. Care Fac. Rev. Bonds       
(Westminster-Canterbury)       
5s, 7/1/31  BB/P  1,250,000  1,242,788 
4 7/8s, 7/1/21  BB/P  1,000,000  995,550 
Peninsula Ports Auth. Rev. Bonds (Baptist Homes), Ser.       
C, 5 3/8s, 12/1/26  B+/P  750,000  775,680 
Winchester, Indl. Dev. Auth. Res. Care Fac. Rev. Bonds       
(Westminster-Canterbury), Ser. A, 5.2s, 1/1/27  BB/P  500,000  509,055 
      6,487,662 

 
Washington (1.2%)       
Tobacco Settlement Auth. of WA Rev. Bonds       
6 5/8s, 6/1/32  BBB  2,000,000  2,204,860 
6 1/2s, 6/1/26  BBB  1,180,000  1,296,938 
WA State Hlth. Care Fac. Auth. Rev. Bonds (Group Hlth.       
Coop), Radian Insd., 5s, 12/1/22  AA  875,000  917,875 
      4,419,673 

 
West Virginia (0.6%)       
Princeton, Hosp. Rev. Bonds (Cmnty. Hosp. Assn.,       
Inc.), 6.1s, 5/1/29  B2  2,250,000  2,306,678 

 
Wisconsin (3.4%)       
Badger Tobacco Settlement Asset Securitization Corp.       
Rev. Bonds       
7s, 6/1/28  BBB  3,000,000  3,342,210 
6 3/8s, 6/1/32  BBB  4,000,000  4,363,000 
WI Hsg. & Econ. Dev. Auth. Rev. Bonds (Home       
Ownership), Ser. D, 4 7/8s, 3/1/36  Aa2  490,000  500,491 
WI State Hlth. & Edl. Fac. Auth. Rev. Bonds (Wheaton       
Franciscan), 5 3/4s, 8/15/30 (Prerefunded)  A3  3,900,000  4,273,525 
      12,479,226 

 
Wyoming (1.0%)       
Sweetwater Cnty., Poll. Control VRDN (Pacificorp.),       
Ser. B, 3.74s, 1/1/14  A-1+  2,800,000  2,800,000 
Sweetwater Cnty., Solid Waste Disp. Rev. Bonds (FMC       
Corp.), 5.6s, 12/1/35  Baa3  700,000  743,981 
      3,543,981 
Total municipal bonds and notes (cost $514,052,159)      $533,631,613 
PREFERRED STOCKS (1.7%)(a)       
    Shares  Value 

Charter Mac. Equity Trust 144A Ser. A, 6.625% cum. pfd.    2,000,000  $2,100,780 
MuniMae Tax Exempt Bond Subsidiary, LLC 144A Ser. A,       
6.875% cum. pfd.    4,000,000  4,224,120 


Total preferred stocks (cost $6,000,000)  $6,324,900 

TOTAL INVESTMENTS   
Total investments (cost $520,052,159) (b)  $539,956,513 


FUTURES CONTRACTS OUTSTANDING at 1/31/07 (Unaudited)                                       
 
                       Number of                   Expiration  Unrealized 
  contracts  Value  date  appreciation 

U.S. Treasury Note 10 yr (Short)  284  $30,317,000  Mar-07  $578,575 



NOTES

(a) Percentages indicated are based on net assets of $371,417,290.

(RAT) The Moody's or Standard & Poor's ratings indicated are believed to be the most recent ratings available at January 31, 2007 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 January 31, 2007. Securities rated by Putnam are indicated by "/P." Securities rated by Fitch are indicated by "/F."

(b) The aggregate identified cost on a tax basis is $519,508,900, resulting in gross unrealized appreciation and depreciation of $23,807,058 and $3,359,445, respectively, or net unrealized appreciation of $20,447,613.

(NON) Non-income-producing security.

(RES) Restricted, excluding 144A securities, as to public resale. The total market value of restricted securities held at January 31, 2007 was $2,084,940 or 0.6% of net assets.

(SEG) A portion of this security was pledged and segregated with the custodian to cover margin requirements for futures contracts at January 31, 2007.

(F) Security is valued at fair value following procedures approved by the Trustees.

144A after the name of an issuer represents securities exempt from registration under Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

The rates shown on VRDN, Mandatory Put Bonds, Floating Rate Bonds (FRB) and Floating Rate Notes (FRN) are the current interest rates at January 31, 2007.

The dates shown on Mandatory Put Bonds are the next mandatory put dates.

The dates shown on debt obligations other than Mandatory Put Bonds are the original maturity dates.

The fund had the following sector concentrations greater than 10% at January 31, 2007 (as a percentage of net assets):   
 
Health care  52.3% 
Utilities  17.9 
Transportation  13.9 
Housing  13.7 
 
The fund had the following insurance concentration greater than 10% at January 31, 2007 (as a percentage of net assets):   
 
AMBAC  14.9% 

Security valuation Tax-exempt bonds and notes are valued at fair value 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. Other investments are valued at fair value following procedures approved by the Trustees. Such valuations and procedures are reviewed periodically by the Trustees. 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 at a given point in time and does not reflect an actual market price, which may be different by a material amount.

Futures and options contracts The fund may use futures and options contracts to hedge against changes in the values of securities the fund owns or expects to purchase, or for other investment purposes. The fund may also write options on swaps or securities it owns or in which it may invest to increase its current returns.

The potential risk to the fund is that the change in value of futures and options 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, or if the counterparty to the contract is unable to perform. 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. Realized gains and losses on purchased options are included in realized gains and losses on investment securities. If a written call option is exercised, the premium originally received is recorded as an addition to sales proceeds. If a written put option is exercised, the premium originally received is recorded as a reduction to the cost of investments.

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.” Exchange traded options are valued at the last sale price or, if no sales are reported, the last bid price for purchased options and the last ask price for written options. Options traded over-the-counter are valued using prices supplied by dealers. Futures and written option contracts outstanding at period end, if any, are listed after the fund’s portfolio.

For additional information regarding the fund please see the fund's most recent annual or semiannual shareholder report filed on the Securities and Exchange Commission's Web site, www.sec.gov, or visit Putnam's Individual Investor Web site at www.putnaminvestments.com


Item 2. 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 90 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:
Effective January 1, 2007, the fund retained State Street Bank and Trust Company ("State Street") as its custodian. Putnam Fiduciary Trust Company, the fund's previous custodian, is managing the transfer of the fund's assets to State Street. This transfer is expected to be completed for all Putnam funds during the first half of 2007, with PFTC remaining as custodian with respect to fund assets until the assets are transferred. Also effective January 1, 2007, the fund's investment manager, Putnam Investment Management, LLC entered into a Master Sub-Accounting Services Agreement with State Street, under which the investment manager has delegated to State Street responsibility for providing certain administrative, pricing, and bookkeeping services for the fund.

Item 3. Exhibits:

Separate certifications for the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) 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: March 28, 2007

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/ Charles E. Porter
Charles E. Porter


Principal Executive Officer
Date: March 28, 2007

By (Signature and Title):

/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer
Date: March 28, 2007