UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY
SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
51 West 52nd Street, New York, New York 10019-6114
Mark F. Kemper,
Esq.
UBS Global Asset Management
51 West 52nd Street
New York,
NY 10019-6114
(Name and address of agent for service)
Copy to:
Jack W. Murphy, Esq.
Dechert LLP
1775 I Street, N.W.
Washington, DC 20006-2401
Registrants telephone number, including area code: 212-882 5000
Date of fiscal year end: September 30
Date of reporting period: June 30, 2007
Item 1. Schedule of Investments
Investment Grade Municipal Income Fund Inc.
Schedule of investments June 30, 2007 (unaudited)
Principal | |||||||||||||||||||||||
amount | Moodys | S&P | Maturity | Interest | |||||||||||||||||||
(000) ($) | rating | rating | dates | rates (%) | Value ($) | ||||||||||||||||||
Long-term municipal bonds160.79% | |||||||||||||||||||||||
Alaska 2.00% | |||||||||||||||||||||||
1,000 | Alaska International Airports Revenue | ||||||||||||||||||||||
Refunding-Series A (MBIA Insured)1 | Aaa | AAA | 10/01/19 | 5.000 | 1,037,440 | ||||||||||||||||||
1,000 | Alaska International Airports Revenue | ||||||||||||||||||||||
Refunding-Series A (MBIA Insured)1 | Aaa | AAA | 10/01/20 | 5.000 | 1,033,610 | ||||||||||||||||||
1,000 | Alaska International Airports Revenue | ||||||||||||||||||||||
Refunding-Series A (MBIA Insured)1 | Aaa | AAA | 10/01/21 | 5.000 | 1,030,560 | ||||||||||||||||||
3,101,610 | |||||||||||||||||||||||
Arizona 1.61% | |||||||||||||||||||||||
2,380 | Arizona State Transportation Board Highway | ||||||||||||||||||||||
Revenue-Series B | Aa1 | AAA | 07/01/18 | 5.250 | 2,498,334 | ||||||||||||||||||
Arkansas 0.94% | |||||||||||||||||||||||
1,435 | Little Rock Capital Improvement Revenue | ||||||||||||||||||||||
Parks & Recreation Projects-Series A | NR | NR | 01/01/18 | 5.700 | 1,464,805 | ||||||||||||||||||
California 36.85% | |||||||||||||||||||||||
5,000 | California Educational Facilities Authority | ||||||||||||||||||||||
Revenue Refunding-Pepperdine University- | |||||||||||||||||||||||
Series A (FGIC Insured) | Aaa | AAA | 09/01/33 | 5.000 | 5,118,550 | ||||||||||||||||||
5,000 | California Health Facilities Financing | ||||||||||||||||||||||
Authority Revenue-Kaiser Permanente-Series A | NR | A+ | 04/01/39 | 5.250 | 5,119,400 | ||||||||||||||||||
5,000 | California State Refunding | A1 | A+ | 05/01/27 | 5.000 | 5,120,150 | |||||||||||||||||
3,000 | California State Refunding-Series 2 | A1 | A+ | 09/01/27 | 5.000 | 3,078,360 | |||||||||||||||||
3,000 | California Statewide Communities | ||||||||||||||||||||||
Development Authority Apartment | |||||||||||||||||||||||
Development Revenue Refunding-Irvine | |||||||||||||||||||||||
Apartment Communities-Series A-3 | |||||||||||||||||||||||
(Mandatory Put 05/17/10 @ 100) | NR | BBB+ | 05/15/25 | 5.100 | 2 | 3,063,120 | |||||||||||||||||
1,750 | California Statewide Communities | ||||||||||||||||||||||
Development Authority Revenue-Kaiser | |||||||||||||||||||||||
Permanente-Series H (Mandatory Put | |||||||||||||||||||||||
05/01/08 @ 100) | NR | A+ | 04/01/34 | 2.625 | 2 | 1,722,910 | |||||||||||||||||
2,150 | Fontana Redevelopment Agency Tax | ||||||||||||||||||||||
Allocation Refunding-Jurupa Hills | |||||||||||||||||||||||
Redevelopment Project A | NR | A- | 10/01/17 | 5.500 | 2,217,811 | ||||||||||||||||||
6,250 | Los Angeles Wastewater System Revenue | ||||||||||||||||||||||
Refunding-Series A (FSA Insured) | Aaa | AAA | 06/01/32 | 5.000 | 6,411,937 | ||||||||||||||||||
5,000 | Los Angeles Water & Power Revenue Power | ||||||||||||||||||||||
System-Series A, Subseries A-2 (MBIA | |||||||||||||||||||||||
Insured) | Aaa | AAA | 07/01/27 | 5.000 | 5,153,700 | ||||||||||||||||||
10,000 | Sacramento County Sanitation District | ||||||||||||||||||||||
Financing Authority Revenue Refunding | |||||||||||||||||||||||
(AMBAC Insured) | Aaa | AAA | 12/01/27 | 5.000 | 10,257,100 | ||||||||||||||||||
2,600 | San Diego County Regional Airport Authority | ||||||||||||||||||||||
Airport Revenue Refunding (AMBAC | |||||||||||||||||||||||
Insured)1 | Aaa | AAA | 07/01/16 | 5.250 | 2,773,810 | ||||||||||||||||||
2,000 | San Francisco City & County Public Utilities | ||||||||||||||||||||||
Commission Water Revenue-Series A (MBIA | |||||||||||||||||||||||
Insured) | Aaa | AAA | 11/01/25 | 5.000 | 2,055,680 | ||||||||||||||||||
Investment Grade Municipal Income Fund Inc.
Schedule of investments June 30, 2007 (unaudited)
Principal | |||||||||||||||||||||||
amount | Moodys | S&P | Maturity | Interest | |||||||||||||||||||
(000) ($) | rating | rating | dates | rates (%) | Value ($) | ||||||||||||||||||
Long-term municipal bonds(continued) | |||||||||||||||||||||||
California(concluded) | |||||||||||||||||||||||
5,000 | University of California Revenue-Series A | ||||||||||||||||||||||
(AMBAC Insured)3 | Aaa | AAA | 05/15/28 | 5.000 | 5,137,350 | ||||||||||||||||||
57,229,878 | |||||||||||||||||||||||
Colorado 4.86% | |||||||||||||||||||||||
3,000 | Colorado Health Facilities Authority Revenue | ||||||||||||||||||||||
Refunding-Adventist Health/Sunbelt-Series E | A2 | A+ | 11/15/18 | 5.125 | 2 | 3,107,160 | |||||||||||||||||
3,000 | Colorado Health Facilities Authority Revenue | ||||||||||||||||||||||
Refunding-Adventist Health/Sunbelt-Series E | A2 | A+ | 11/15/19 | 5.125 | 2 | 3,095,640 | |||||||||||||||||
1,293 | University of Colorado Participation Interests | NR | A+ | 12/01/13 | 6.000 | 1,353,324 | |||||||||||||||||
7,556,124 | |||||||||||||||||||||||
Florida 4.02% | |||||||||||||||||||||||
3,350 | Florida State Board of Education Capital | ||||||||||||||||||||||
Outlay-Series E (FGIC Insured) | Aaa | AAA | 06/01/24 | 5.000 | 3,450,466 | ||||||||||||||||||
2,700 | Miami-Dade County Aviation Revenue | ||||||||||||||||||||||
Refunding-Miami International Airport-Series | |||||||||||||||||||||||
B (XLCA Insured)1 | Aaa | AAA | 10/01/18 | 5.000 | 2,790,180 | ||||||||||||||||||
6,240,646 | |||||||||||||||||||||||
Illinois 12.27% | |||||||||||||||||||||||
11,270 | Chicago OHare International Airport | ||||||||||||||||||||||
Revenue-General-Third
Lien-Series D (MBIA Insured)1 |
Aaa | AAA | 01/01/26 | 5.000 | 11,428,682 | ||||||||||||||||||
1,200 | Illinois Educational Facilities Authority | ||||||||||||||||||||||
Revenue Refunding-Augustana College-Series A | Baa1 | NR | 10/01/22 | 5.625 | 1,245,408 | ||||||||||||||||||
6,000 | Illinois Finance Authority Revenue-University | ||||||||||||||||||||||
of Chicago-Series A | Aa1 | AA | 07/01/34 | 5.000 | 6,131,520 | ||||||||||||||||||
250 | Metropolitan Pier & Exposition Authority | ||||||||||||||||||||||
Dedicated State Tax Revenue | A1 | AAA | 06/15/27 | 6.500 | 250,460 | ||||||||||||||||||
19,056,070 | |||||||||||||||||||||||
Indiana 5.25% | |||||||||||||||||||||||
4,000 | Indiana Health & Educational Facilities | ||||||||||||||||||||||
Financing Authority Hospital Revenue | |||||||||||||||||||||||
Refunding-Clarian Health Obligation Group-Series B | A2 | A+ | 02/15/21 | 5.000 | 4,041,680 | ||||||||||||||||||
4,000 | Indianapolis Airport Authority Revenue | ||||||||||||||||||||||
Refunding-Special Facilities-FedEx Corp. Project1 | Baa2 | BBB | 01/15/17 | 5.100 | 4,113,760 | ||||||||||||||||||
8,155,440 | |||||||||||||||||||||||
Kentucky 1.41% | |||||||||||||||||||||||
2,080 | Kenton County Airport Board Airport | ||||||||||||||||||||||
Revenue-Cincinnati/Northern Kentucky-Series | |||||||||||||||||||||||
B (MBIA Insured)1 | Aaa | AAA | 03/01/18 | 5.500 | 2,191,488 | ||||||||||||||||||
Massachusetts 4.61% | |||||||||||||||||||||||
6,000 | Massachusetts Health & Educational Facilities | ||||||||||||||||||||||
Authority Revenue-Harvard University-Series DD | Aaa | AAA | 07/15/35 | 5.000 | 6,127,740 | ||||||||||||||||||
Investment Grade Municipal Income Fund Inc.
Schedule of investments June 30, 2007 (unaudited)
Principal | |||||||||||||||||||||||
amount | Moodys | S&P | Maturity | Interest | |||||||||||||||||||
(000) ($) | rating | rating | dates | rates (%) | Value ($) | ||||||||||||||||||
Long-term municipal bonds(continued) | |||||||||||||||||||||||
Massachusetts(concluded) | |||||||||||||||||||||||
1,000 | Massachusetts Port Authority Revenue-US | ||||||||||||||||||||||
Airways Project (MBIA Insured)1 | Aaa | AAA | 09/01/21 | 6.000 | 1,040,140 | ||||||||||||||||||
7,167,880 | |||||||||||||||||||||||
Michigan 5.24% | |||||||||||||||||||||||
5,000 | Michigan State Hospital Finance Authority | ||||||||||||||||||||||
Revenue Refunding-Trinity Health Credit | |||||||||||||||||||||||
Group-Series D | Aa2 | AA- | 08/15/25 | 5.000 | 5,079,800 | ||||||||||||||||||
3,000 | Michigan State Hospital Finance Authority | ||||||||||||||||||||||
Revenue-Trinity Health Credit Group-Series A | Aa2 | AA- | 12/01/26 | 5.000 | 3,051,750 | ||||||||||||||||||
8,131,550 | |||||||||||||||||||||||
Minnesota 0.98% | |||||||||||||||||||||||
1,500 | Shakopee Health Care Facilities Revenue- | ||||||||||||||||||||||
Saint Francis Regional Medical Center | NR | BBB | 09/01/17 | 5.000 | 1,525,200 | ||||||||||||||||||
New Jersey 3.48% | |||||||||||||||||||||||
5,000 | New Jersey Transportation Trust Fund | ||||||||||||||||||||||
Authority Transportation System-Series A | A1 | AA- | 12/15/20 | 5.250 | 5,401,700 | ||||||||||||||||||
New York 16.35% | |||||||||||||||||||||||
1,765 | Metropolitan Transportation Authority New | ||||||||||||||||||||||
York Dedicated Tax Fund-Series A (FSA Insured) | Aaa | AAA | 11/15/24 | 5.250 | 1,860,239 | ||||||||||||||||||
4,815 | New York City General Obligation-Series O | A1 | AA- | 06/01/24 | 5.000 | 4,960,846 | |||||||||||||||||
2,000 | New York City Industrial Development | ||||||||||||||||||||||
Agency Special Facilities Revenue-Terminal | |||||||||||||||||||||||
One Group Association Project1 | A3 | BBB+ | 01/01/15 | 5.500 | 2,145,940 | ||||||||||||||||||
2,750 | New York City Industrial Development | ||||||||||||||||||||||
Agency Special Facilities Revenue-Terminal | |||||||||||||||||||||||
One Group Association Project1 | A3 | BBB+ | 01/01/17 | 5.500 | 2 | 2,944,562 | |||||||||||||||||
3,250 | New York City Industrial Development | ||||||||||||||||||||||
Agency Special Facilities Revenue-Terminal | |||||||||||||||||||||||
One Group Association Project1 | A3 | BBB+ | 01/01/18 | 5.500 | 3,463,395 | ||||||||||||||||||
3,140 | Triborough Bridge & Tunnel Authority | ||||||||||||||||||||||
Revenue Refunding-Series B | Aa2 | AA- | 11/15/19 | 5.250 | 3,309,435 | ||||||||||||||||||
6,400 | Triborough Bridge & Tunnel Authority | ||||||||||||||||||||||
Revenue-Subordinate Bonds | Aa3 | A+ | 11/15/30 | 5.250 | 6,702,976 | ||||||||||||||||||
25,387,393 | |||||||||||||||||||||||
North Carolina 10.88% | |||||||||||||||||||||||
3,065 | North Carolina Eastern Municipal Power | ||||||||||||||||||||||
Agency Power System Revenue-Series A | |||||||||||||||||||||||
(Escrowed to Maturity) | Baa2 | AAA | 01/01/21 | 6.400 | 3,597,114 | ||||||||||||||||||
5,000 | North Carolina Medical Care Commission | ||||||||||||||||||||||
Health Care Facilities Revenue-Novant Health | |||||||||||||||||||||||
Obligation Group | Aa3 | AA- | 11/01/34 | 5.000 | 5,074,250 | ||||||||||||||||||
8,745 | North Carolina State Public Improvement- | ||||||||||||||||||||||
Series A | Aa1 | AAA | 03/01/24 | 4.000 | 8,235,604 | ||||||||||||||||||
16,906,968 | |||||||||||||||||||||||
Ohio 6.82% | |||||||||||||||||||||||
2,185 | Ohio State Higher Education-Series B | Aa1 | AA+ | 11/01/17 | 5.250 | 2,298,052 | |||||||||||||||||
Investment Grade Municipal Income Fund Inc.
Schedule of investments June 30, 2007 (unaudited)
Principal | |||||||||||||||||||||||
amount | Moodys | S&P | Maturity | Interest | |||||||||||||||||||
(000) ($) | rating | rating | dates | rates (%) | Value ($) | ||||||||||||||||||
Long-term municipal bonds(continued) | |||||||||||||||||||||||
Ohio(concluded) | |||||||||||||||||||||||
8,000 | Ohio State Water Development Authority | ||||||||||||||||||||||
Water Pollution Control Revenue-Water Quality | Aaa | AAA | 06/01/24 | 5.000 | 8,302,800 | ||||||||||||||||||
10,600,852 | |||||||||||||||||||||||
Pennsylvania 1.97% | |||||||||||||||||||||||
3,000 | Susquehanna Area Regional Airport Authority | ||||||||||||||||||||||
Airport System Revenue-Subseries D | Ba1 | NR | 01/01/18 | 5.375 | 3,056,310 | ||||||||||||||||||
Puerto Rico 8.42% | |||||||||||||||||||||||
3,000 | Puerto Rico Commonwealth Highway & | ||||||||||||||||||||||
Transportation Authority Revenue Refunding- | |||||||||||||||||||||||
Series N | Baa3 | BBB+ | 07/01/22 | 5.500 | 3,256,320 | ||||||||||||||||||
3,000 | Puerto Rico Housing Finance Authority- | ||||||||||||||||||||||
Capital Funding Program (HUD Insured) | Aa3 | AA | 12/01/18 | 5.000 | 3,118,530 | ||||||||||||||||||
6,465 | University of Puerto Rico-Revenue System- | ||||||||||||||||||||||
Series Q | Baa2 | BBB | 06/01/17 | 5.000 | 6,710,735 | ||||||||||||||||||
13,085,585 | |||||||||||||||||||||||
South Carolina 9.03% | |||||||||||||||||||||||
7,570 | Charleston Educational Excellence Financing | ||||||||||||||||||||||
Corp. Revenue-Charleston County School | |||||||||||||||||||||||
District Project | A1 | AA- | 12/01/24 | 5.000 | 7,793,315 | ||||||||||||||||||
5,000 | Greenville County School District Installment | ||||||||||||||||||||||
Purchase Refunding-Building Equity Sooner- | |||||||||||||||||||||||
Series AGC | Aa3 | AA- | 12/01/24 | 5.000 | 5,166,800 | ||||||||||||||||||
1,000 | Greenville Waterworks Revenue | Aa1 | AAA | 02/01/20 | 5.250 | 1,058,930 | |||||||||||||||||
14,019,045 | |||||||||||||||||||||||
South Dakota 0.64% | |||||||||||||||||||||||
975 | Standing Rock New Public Housing4 | NR | NR | 08/07/13 | 6.000 | 987,576 | |||||||||||||||||
Tennessee 2.31% | |||||||||||||||||||||||
1,000 | Memphis-Shelby County Airport Authority | ||||||||||||||||||||||
Airport Revenue-Series D (AMBAC Insured)1 | Aaa | AAA | 03/01/24 | 6.000 | 1,050,300 | ||||||||||||||||||
2,500 | Memphis-Shelby County Airport Authority | ||||||||||||||||||||||
Special Facilities Revenue Refunding-Federal Express Corp. | Baa2 | BBB | 09/01/09 | 5.000 | 2,537,850 | ||||||||||||||||||
3,588,150 | |||||||||||||||||||||||
Texas 17.88% | |||||||||||||||||||||||
3,700 | Coastal Bend Health Facilities Development | ||||||||||||||||||||||
Corp.-Incarnate Word Health System-Series A | |||||||||||||||||||||||
(Escrowed to Maturity) (AMBAC Insured) | Aaa | AAA | 01/01/17 | 6.300 | 4,048,947 | ||||||||||||||||||
6,278 | Harris County Texas Lease5 | NR | NR | 05/01/20 | 6.750 | 6,556,952 | |||||||||||||||||
3,007 | Houston Community College System | ||||||||||||||||||||||
Participation Interests5 | NR | NR | 06/15/25 | 7.875 | 3,387,102 | ||||||||||||||||||
1,485 | Lower Colorado River Authority | ||||||||||||||||||||||
Transmission Contract Revenue-LCRA | |||||||||||||||||||||||
Transmission Services Corp. Project B (FSA Insured) | Aaa | AAA | 05/15/20 | 5.250 | 1,550,384 | ||||||||||||||||||
2,000 | San Leanna Educational Facilities Corp. | ||||||||||||||||||||||
Higher Educational Revenue Refunding-Saint | |||||||||||||||||||||||
Edwards University Project | Baa2 | BBB+ | 06/01/18 | 5.000 | 2,048,660 | ||||||||||||||||||
Investment Grade Municipal Income Fund Inc.
Schedule of investments June 30, 2007 (unaudited)
Principal | |||||||||||||||||||||||
amount | Moodys | S&P | Maturity | Interest | |||||||||||||||||||
(000) ($) | rating | rating | dates | rates (%) | Value ($) | ||||||||||||||||||
Long-term municipal bonds(concluded) | |||||||||||||||||||||||
Texas(concluded) | |||||||||||||||||||||||
5,000 | Tarrant County Cultural Education Facilities | ||||||||||||||||||||||
Finance Corp. Revenue Refunding-Texas | |||||||||||||||||||||||
Health Resources-Series A | Aa3 | AA- | 02/15/19 | 5.000 | 5,169,250 | ||||||||||||||||||
5,000 | Texas State Water Development-Series D | Aa1 | AA | 08/01/19 | 5.000 | 5,004,250 | |||||||||||||||||
27,765,545 | |||||||||||||||||||||||
Washington 2.97% | |||||||||||||||||||||||
4,225 | Chelan County Public Utility District No. 001 | ||||||||||||||||||||||
Consolidated Revenue Refunding-Chelan | |||||||||||||||||||||||
Hydropower-Series A (MBIA Insured)1 | Aaa | AAA | 07/01/32 | 6.050 | 4,618,221 | ||||||||||||||||||
Total long-term municipal bonds (cost$249,977,899) | 249,736,370 | ||||||||||||||||||||||
Short-term municipal notes68.11% | |||||||||||||||||||||||
Illinois 0.96% | |||||||||||||||||||||||
1,400 | Chicago Midway Airport Revenue-Second | ||||||||||||||||||||||
Lien-Series A (MBIA Insured)1 | VMIG-1 | A-1+ | 07/02/07 | 3.860 | 1,400,000 | ||||||||||||||||||
100 | Illinois Health Facilities Authority Revenue- | ||||||||||||||||||||||
University of Chicago Hospitals Project-Series C (MBIA Insured) | VMIG-1 | A-1+ | 07/02/07 | 3.800 | 100,000 | ||||||||||||||||||
1,500,000 | |||||||||||||||||||||||
Indiana 0.26% | |||||||||||||||||||||||
400 | Indiana Development Finance Authority | ||||||||||||||||||||||
Environmental Revenue-Republic Services | |||||||||||||||||||||||
Inc. Project1 | VMIG-1 | NR | 07/02/07 | 3.820 | 400,000 | ||||||||||||||||||
Texas 6.57% | |||||||||||||||||||||||
6,300 | Harris County Health Facilities Development | ||||||||||||||||||||||
Corp. Revenue-Methodist Hospital Systems-Series A | NR | A-1+ | 07/02/07 | 3.790 | 6,300,000 | ||||||||||||||||||
3,900 | Texas Water Development Board Revenue | ||||||||||||||||||||||
Refunding-State Revolving-Sub Lien-A | VMIG-1 | A-1+ | 07/02/07 | 3.790 | 3,900,000 | ||||||||||||||||||
10,200,000 | |||||||||||||||||||||||
Virginia 0.32% | |||||||||||||||||||||||
500 | King George County Industrial Development | ||||||||||||||||||||||
Authority Exempt Facilities Revenue- | |||||||||||||||||||||||
Birchwood Power Partners-Series A1 | NR | A-1+ | 07/02/07 | 3.870 | 500,000 | ||||||||||||||||||
Total short-term municipal notes (cost $12,600,000) | 12,600,000 | ||||||||||||||||||||||
Total investments (cost $262,577,899)7,8 168.90% | 262,336,370 | ||||||||||||||||||||||
Other assets in excess of liabilities 1.92% | 2,980,893 | ||||||||||||||||||||||
Liquidation value of auction preferred shares (70.82)% | (110,000,000 | ) | |||||||||||||||||||||
Net assets applicable to common shareholders 100.00% | 155,317,263 | ||||||||||||||||||||||
1 | Security subject to Alternative Minimum Tax. | |
2 | Floating rate security. The interest rate shown is the current rate as of June 30, 2007. | |
3 | Partial amount delivered to broker as collateral for futures transactions. | |
4 | Security exempt from registration under Rule 144A of the Securities Act of 1933. This security, which represents 0.64% of net assets applicable to common shareholders as of June 30, 2007, is considered illiquid and restricted (See table below for more information). |
Acquisition | Market | ||||||||||
cost as a | value as a | ||||||||||
percentage | percentage | ||||||||||
Illiquid and | Acquisition | Acquisition | of common | Market | of common | ||||||
restricted security | date | cost ($) | net assets (%) | value ($) | net assets (%) | ||||||
Standing Rock New Public Housing, 6.000%, 08/07/13 | 08/08/02 | 974,844 | 0.63 | 987,576 | 0.64 | ||||||
Investment Grade Municipal Income Fund Inc.
Schedule of investments June 30, 2007 (unaudited)
5 | The securities detailed in the table below are considered illiquid and restricted and represent 6.40% of net assets applicable to common shareholders as of June 30, 2007. | |
Acquisition | Market | ||||||||||
cost as a | value as a | ||||||||||
percentage | percentage | ||||||||||
Illiquid and | Acquisition | Acquisition | of common | Market | of common | ||||||
restricted securities | dates | cost ($) | net assets (%) | value ($) | net assets (%) | ||||||
Harris County Texas Lease, | |||||||||||
6.750%, 05/01/20 | 09/07/00 | 6,278,020 | 4.04 | 6,556,952 | 4.22 | ||||||
Houston Community
College System Participation
Interests, 7.875%, 06/15/25 |
04/22/02 | 3,007,095 | 1.94 | 3,387,102 | 2.18 | ||||||
9,285,115 | 5.98 | 9,944,054 | 6.40 | ||||||||
6 | Variable rate demand notes are payable on demand. The maturity dates shown are the next interest rate reset dates. The interest rates shown are the current rates as of June 30, 2007. | |
7 | Cost of investments shown approximates cost for federal income tax purposes. Gross unrealized appreciation of investments and gross unrealized depreciation of investments at June 30, 2007 were $2,360,716 and $2,602,245, respectively, resulting in net unrealized depreciation of investments of $241,529. | |
8 | The Fund calculates its net asset value based on the current market value, where available, for its portfolio securities. The Fund normally obtains market values for its securities from independent pricing sources and broker-dealers. Independent pricing sources may use last reported sale prices, current market quotations or valuations from computerized matrix systems that derive values based on comparable securities. A matrix system incorporates parameters such as security quality, maturity and coupon, and/or research and evaluations by its staff, including review of broker-dealer market price quotations, if available, in determining the valuation of the portfolio securities. If a market value is not available from an independent pricing source for a particular security, that security is valued at fair value as determined in good faith by or under the direction of the Funds Board of Directors (the Board). Various factors may be reviewed in order to make a good faith determination of a securitys fair value. These factors include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; and changes in overall market conditions. If events occur that materially affect the value of securities (particularly non-US securities) between the close of trading in those securities and the close of regular trading on the New York Stock Exchange, the securities are fair valued. The amortized cost method of valuation, which approximates market value, generally is used to value short-term debt instruments with sixty days or less remaining to maturity, unless the Board or its delegate determines that this does not represent fair value. Securities traded in the over-the-counter (OTC) market are valued at the last bid price available on the valuation date prior to valuation. | |
AMBAC | American Municipal Bond Assurance Corporation | |
FGIC | Financial Guaranty Insurance Company | |
FSA | Financial Security Assurance | |
HUD | Housing and Urban Development | |
MBIA | Municipal Bond Investors Assurance | |
NR | Not Rated | |
XLCA | XL Capital Assurance |
Futures contracts | |||||||||||
Number of | Expiration | Current | Unrealized | ||||||||
contracts | Sale contracts | date | Proceeds ($) | value ($) | appreciation ($) | ||||||
125 | US Treasury Bond 30 Year Futures | September 2007 | 13,569,088 | 13,468,750 | 100,338 | ||||||
For more information regarding the Funds other significant accounting policies, please refer to the Funds semiannual report to shareholders dated March 31, 2007.
Item 2. Controls and Procedures.
(a) | The registrants principal executive officer and principal financial officer have concluded
that the registrants disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (Investment
Company Act)) 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) | The registrants principal executive officer and principal financial officer are aware of
no changes in the registrants internal control over financial reporting (as
defined in Rule 30a-3(d) under the Investment Company Act) that occurred during
the registrants last fiscal quarter that has materially affected, or is reasonably
likely to materially affect, the registrants internal control over financial
reporting. |
Item 3. Exhibits.
(a) | Certifications
of principal executive officer and principal financial officer of registrant pursuant
to Rule 30a-2(a) under the Investment Company Act is attached hereto as Exhibit
EX-99.CERT. |
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.
Investment Grade Municipal Income Fund Inc. | ||
By: | /s/ Kai R. Sotorp | |
Kai R. Sotorp | ||
President | ||
Date: | August 29, 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: | /s/ Kai R. Sotorp | |
Kai R. Sotorp | ||
President | ||
Date: | August 29, 2007 | |
By: | /s/ Thomas Disbrow | |
Thomas Disbrow | ||
Vice President and Treasurer | ||
Date: | August 29, 2007 |