| UNITED STATES SECURITIES AND EXCHANGE COMMISSION | ||
| Washington, D.C. 20549 | ||
FORM N-CSR | ||
| CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES | ||
| Investment Company Act file number: | (811-05740) |
| Exact name of registrant as specified in charter: | Putnam Managed Municipal Income Trust |
| Address of principal executive offices: | 100 Federal Street, Boston, Massachusetts 02110 |
| Name and address of agent for service: | Stephen Tate, Vice President 100 Federal Street Boston, Massachusetts 02110 |
| Copy to: | Bryan Chegwidden, Esq. Ropes & Gray LLP 1211 Avenue of the Americas New York, New York 10036 |
| James E. Thomas, Esq. Ropes & Gray LLP 800 Boylston Street Boston, Massachusetts 02199 |
| Registrant’s telephone number, including area code: | (617) 292-1000 |
| Date of fiscal year end: | October 31, 2023 |
| Date of reporting period: | November 1, 2022 – April 30, 2023 |
Item 1. Report to Stockholders: |
| The following is a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Investment Company Act of 1940: | |||
Putnam
Managed Municipal
Income Trust
Semiannual report
4 | 30 | 23
The fund has adopted a managed distribution policy (the “Distribution Policy”) with the goal of providing shareholders with a consistent, although not guaranteed, monthly distribution. In accordance with the Distribution Policy, the fund currently expects to make monthly distributions to common shareholders at a distribution rate per share of $0.0238. Distributions may include ordinary and/or tax-exempt income, net capital gains, and/or a return of capital of your investment in the fund. You should not draw any conclusions about the fund’s investment performance from the amount of this distribution or from the terms of the Distribution Policy. The Distribution Policy provides that the Board of Trustees may amend or terminate the Distribution Policy at any time without prior notice to fund shareholders.
Message from the Trustees
June 16, 2023
Dear Fellow Shareholder:
Stocks and bonds have generally advanced since the start of the year despite market ups and downs. Inflation has fallen but remains a concern for the Federal Reserve. U.S. interest rates have risen to their highest level since 2007, which is putting pressure on corporate earnings and causing stress in the banking system.
Fortunately, a strong pulse of innovation in the broader economy is gaining investor attention. International markets are becoming increasingly dynamic, in part because China’s economy is reopening after years of pandemic-related restrictions.
While remaining alert to market risks, your investment team is finding new and attractive opportunities across sectors, industries, and global markets. This report offers an update about their efforts in managing your fund.
Thank you for investing with Putnam.
Credit qualities are shown as a percentage of the fund’s net assets as of 4/30/23. A bond rated BBB or higher (SP-3 or higher, for short-term debt) is considered investment grade. This chart reflects the highest security rating provided by one or more of Standard & Poor’s, Moody’s, and Fitch. Ratings may vary over time. Due to rounding, percentages may not equal 100%.
Cash and net other assets, if any, represent the market value weights of cash, derivatives, and short-term securities in the portfolio. The fund itself has not been rated by an independent rating agency.
Of special interest
Due to a reduced level of portfolio income, the fund decreased its targeted distribution rate in April 2023. The fund currently expects to make monthly distributions of $0.0238 per share, down from $0.032 per share. The fund’s targeted distribution rate may change from time to time or be discontinued, depending on market conditions and other factors.
| 2 Managed Municipal Income Trust |
CLOSED-END FUNDS OFFER DISTINCTIVE CHARACTERISTICS
Closed-end funds have some key characteristics that you should understand as you consider your portfolio strategies.
More assets at work Closed-end funds are typically fixed pools of capital that do not need to hold cash in connection with sales and redemptions, allowing the funds to keep more assets actively invested.
Traded like stocks Closed-end fund shares are traded on stock exchanges.
They have a market price A closed-end fund has a per-share net asset value (NAV) and a market price, which is how much you pay when you buy shares of the fund, and how much you receive when you sell them.
When looking at a closed-end fund’s performance, you will usually see that the NAV and the market price differ. The market price can be influenced by several factors that cause it to vary from the NAV, including fund distributions, changes in supply and demand for the fund’s shares, changing market conditions, and investor perceptions of the fund or its investment manager.
| Managed Municipal Income Trust 3 |
Other information for shareholders
Important notice regarding share repurchase program
In September 2022, the Trustees of your fund approved the renewal of a share repurchase program that had been in effect since 2005. This renewal allows your fund to repurchase, in the 365 days beginning October 1, 2022, up to 10% of the fund’s common shares outstanding as of September 30, 2022.
Important notice regarding delivery of shareholder documents
In accordance with Securities and Exchange Commission (SEC) regulations, Putnam sends a single notice of internet availability, or a single printed copy, of annual and semian-nual shareholder reports, prospectuses, and proxy statements to Putnam shareholders who share the same address, unless a shareholder requests otherwise. If you prefer to receive your own copy of these documents, please call Putnam at 1-800-225-1581, and Putnam will begin sending individual copies within 30 days.
Proxy voting
Putnam is committed to managing our funds in the best interests of our shareholders. The Putnam funds’ proxy voting guidelines and procedures, as well as information regarding how your fund voted proxies relating to portfolio securities during the 12-month period ended June 30, 2022, are available in the Individual Investors section of putnam.com and on the SEC’s website, www.sec.gov. If you have questions about finding forms on the SEC’s website, you may call the SEC at 1-800-SEC-0330. You may also obtain the Putnam funds’ proxy voting guidelines and procedures at no charge by calling Putnam’s Shareholder Services at 1-800-225-1581.
Fund portfolio holdings
The fund will file a complete schedule of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT within 60 days of the end of such fiscal quarter. Shareholders may obtain the fund’s Form N-PORT on the SEC’s website at www.sec.gov.
Trustee and employee fund ownership
Putnam employees and members of the Board of Trustees place their faith, confidence, and, most importantly, investment dollars in Putnam funds. As of April 30, 2023, Putnam employees had approximately $467,000,000 and the Trustees had approximately $66,000,000 invested in Putnam funds. These amounts include investments by the Trustees’ and employees’ immediate family members as well as investments through retirement and deferred compensation plans.
| 4 Managed Municipal Income Trust |
Important notice regarding Putnam’s privacy policy
In order to conduct business with our shareholders, we must obtain certain personal information such as account holders’ names, addresses, Social Security numbers, and dates of birth. Using this information, we are able to maintain accurate records of accounts and transactions.
It is our policy to protect the confidentiality of our shareholder information, whether or not a shareholder currently owns shares of our funds. In particular, it is our policy not to sell information about you or your accounts to outside marketing firms. We have safeguards in place designed to prevent unauthorized access to our computer systems and procedures to protect personal information from unauthorized use.
Under certain circumstances, we must share account information with outside vendors who provide services to us, such as mailings and proxy solicitations. In these cases, the service providers enter into confidentiality agreements with us, and we provide only the information necessary to process transactions and perform other services related to your account. Finally, it is our policy to share account information with your financial representative, if you’ve listed one on your Putnam account.
| Managed Municipal Income Trust 5 |
Summary of Putnam closed-end funds’ amended and restated dividend reinvestment plans
Putnam Managed Municipal Income Trust, Putnam Master Intermediate Income Trust, Putnam Municipal Opportunities Trust and Putnam Premier Income Trust (each, a “Fund” and collectively, the “Funds”) each offer a dividend reinvestment plan (each, a “Plan” and collectively, the “Plans”). If you participate in a Plan, all income dividends and capital gain distributions are automatically reinvested in Fund shares by the Fund’s agent, Putnam Investor Services, Inc. (the “Agent”). If you are not participating in a Plan, every month you will receive all dividends and other distributions in cash, paid by check and mailed directly to you.
Upon a purchase (or, where applicable, upon registration of transfer on the shareholder records of a Fund) of shares of a Fund by a registered shareholder, each such shareholder will be deemed to have elected to participate in that Fund’s Plan. Each such shareholder will have all distributions by a Fund automatically reinvested in additional shares, unless such shareholder elects to terminate participation in a Plan by instructing the Agent to pay future distributions in cash. Shareholders who were not participants in a Plan as of January 31, 2010, will continue to receive distributions in cash but may enroll in a Plan at any time by contacting the Agent.
If you participate in a Fund’s Plan, the Agent will automatically reinvest subsequent distributions, and the Agent will send you a confirmation in the mail telling you how many additional shares were issued to your account.
To change your enrollment status or to request additional information about the Plans, you may contact the Agent either in writing, at P.O. Box 8383, Boston, MA 02266-8383, or by telephone at 1-800-225-1581 during normal East Coast business hours.
How you acquire additional shares through a Plan If the market price per share for your Fund’s shares (plus estimated brokerage commissions) is greater than or equal to their net asset value per share on the payment date for a distribution, you will be issued shares of the Fund at a value equal to the higher of the net asset value per share on that date or 95% of the market price per share on that date.
If the market price per share for your Fund’s shares (plus estimated brokerage commissions) is less than their net asset value per share on the payment date for a distribution, the Agent will buy Fund shares for participating accounts in the open market. The Agent will aggregate open-market purchases on behalf of all participants, and the average price (including brokerage commissions) of all shares purchased by the Agent will be the price per share allocable to each participant. The Agent will generally complete these open-market purchases within five business days following the payment date. If, before the Agent has completed open-market purchases, the market price per share (plus estimated brokerage commissions) rises to exceed the net asset value per share on the payment date, then the purchase price may exceed the net asset value per share, potentially resulting in the acquisition of fewer shares than if the distribution had been paid in newly issued shares.
How to withdraw from a Plan Participants may withdraw from a Fund’s Plan at any time by notifying the Agent, either in writing or by telephone. Such withdrawal will be effective immediately if notice is received by the Agent with sufficient time prior to any distribution record date; otherwise, such withdrawal will be effective with respect to any subsequent distribution following notice of withdrawal. There is no penalty for withdrawing from or not participating in a Plan.
Plan administration The Agent will credit all shares acquired for a participant under a Plan to the account in which the participant’s common shares are held. Each participant will
| 6 Managed Municipal Income Trust |
be sent reasonably promptly a confirmation by the Agent of each acquisition made for his or her account.
About brokerage fees Each participant pays a proportionate share of any brokerage commissions incurred if the Agent purchases additional shares on the open market, in accordance with the Plans. There are no brokerage charges applied to shares issued directly by the Funds under the Plans.
About taxes and Plan amendments
Reinvesting dividend and capital gain distributions in shares of the Funds does not relieve you of tax obligations, which are the same as if you had received cash distributions. The Agent supplies tax information to you and to the IRS annually. Each Fund reserves the right to amend or terminate its Plan upon 30 days’ written notice. However, the Agent may assign its rights, and delegate its duties, to a successor agent with the prior consent of a Fund and without prior notice to Plan participants.
If your shares are held in a broker or nominee name If your shares are held in the name of a broker or nominee offering a dividend reinvestment service, consult your broker or nominee to ensure that an appropriate election is made on your behalf. If the broker or nominee holding your shares does not provide a reinvestment service, you may need to register your shares in your own name in order to participate in a Plan.
In the case of record shareholders such as banks, brokers or nominees that hold shares for others who are the beneficial owners of such shares, the Agent will administer the Plan on the basis of the number of shares certified by the record shareholder as representing the total amount registered in such shareholder’s name and held for the account of beneficial owners who are to participate in the Plan.
| Managed Municipal Income Trust 7 |
Financial statements
These sections of the report, as well as the accompanying Notes, constitute the fund’s financial statements.
The fund’s portfolio lists all the fund’s investments and their values as of the last day of the reporting period. Holdings are organized by asset type and industry sector, country, or state to show areas of concentration and diversification.
Statement of assets and liabilities shows how the fund’s net assets and share price are determined. All investment and non-investment assets are added together. Any unpaid expenses and other liabilities are subtracted from this total. The result is divided by the number of shares to determine the net asset value per share, which is calculated separately for each class of shares. (For funds with preferred shares, the amount subtracted from total assets includes the liquidation preference of preferred shares.)
Statement of operations shows the fund’s net investment gain or loss. This is done by first adding up all the fund’s earnings — from dividends and interest income — and subtracting its operating expenses to determine net investment income (or loss). Then, any net gain or loss the fund realized on the sales of its holdings — as well as any unrealized gains or losses over the period — is added to or subtracted from the net investment result to determine the fund’s net gain or loss for the fiscal period.
Statement of changes in net assets shows how the fund’s net assets were affected by the fund’s net investment gain or loss, by distributions to shareholders, and by changes in the number of the fund’s shares. It lists distributions and their sources (net investment income or realized capital gains) over the current reporting period and the most recent fiscal year-end. The distributions listed here may not match the sources listed in the Statement of operations because the distributions are determined on a tax basis and may be paid in a different period from the one in which they were earned. Dividend sources are estimated at the time of declaration. Actual results may vary. Any non-taxable return of capital cannot be determined until final tax calculations are completed after the end of the fund’s fiscal period. Dividend sources are estimated at the time of declaration. Actual results may vary. Any non-taxable return of capital cannot be determined until final tax calculations are completed after the end of the fund’s fiscal period.
Statement of cash flows shows changes in the fund’s cash balance during the period as results of cash flows from operating and financing activities.
Financial highlights provide an overview of the fund’s investment results, per-share distributions, expense ratios, net investment income ratios, and portfolio turnover (not required for money market funds) in one summary table, reflecting the five most recent reporting periods. In a semiannual report, the highlights table also includes the current reporting period.
| 8 Managed Municipal Income Trust |
| The fund’s portfolio 4/30/23 (Unaudited) | ||
Key to holding’s abbreviations
| AGM Assured Guaranty Municipal Corporation |
| AMBAC AMBAC Indemnity Corporation |
| BAM Build America Mutual |
| G.O. Bonds General Obligation Bonds |
| PSFG Permanent School Fund Guaranteed |
| Q-SBLF Qualified School Board Loan Fund |
| MUNICIPAL BONDS AND NOTES (133.4%)* | Rating** | Principal amount | Value | |
| Alabama (2.2%) | ||||
| Jefferson Cnty., Swr. Rev. Bonds | ||||
| Ser. D, 6.50%, 10/1/53 | BBB | $500,000 | $529,571 | |
| stepped-coupon zero % (7.75%, 10/1/23), 10/1/46 †† | BBB | 3,950,000 | 4,081,334 | |
| Jefferson, Cnty. Rev. Bonds, (Refunding warrants) | ||||
| 5.00%, 9/15/34 | AA | 2,075,000 | 2,197,203 | |
| 5.00%, 9/15/33 | AA | 275,000 | 291,989 | |
| 7,100,097 | ||||
| Alaska (1.5%) | ||||
| AK State Indl. Dev. & Export Auth. Rev. Bonds, (Tanana Chiefs Conference), Ser. A, 4.00%, 10/1/49 | A+/F | 5,000,000 | 4,685,805 | |
| 4,685,805 | ||||
| Arizona (4.6%) | ||||
| AZ State Indl. Dev. Auth. Ed. 144A Rev. Bonds | ||||
| (BASIS Schools, Inc.), Ser. G, 5.00%, 7/1/37 | BB | 500,000 | 494,469 | |
| (Somerset Academy of Las Vegas), 4.00%, 12/15/41 | BB | 500,000 | 400,759 | |
| La Paz Cnty., Indl. Dev. Auth. Ed. Fac. Rev. Bonds, (Harmony Pub. Schools), Ser. A | ||||
| 5.00%, 2/15/48 | BBB+ | 2,330,000 | 2,288,548 | |
| 5.00%, 2/15/38 | BBB+ | 500,000 | 506,469 | |
| Maricopa Cnty. Indl. Dev. Auth. 144A Rev. Bonds, (Commercial Metals Co), 4.00%, 10/15/47 | BB+ | 700,000 | 581,088 | |
| Maricopa Cnty., Indl. Dev. Auth. Ed. Rev. Bonds, (Horizon Cmnty. Learning Ctr.), 5.00%, 7/1/35 | BB+ | 750,000 | 730,079 | |
| Phoenix, Indl. Dev. Auth. Ed. Rev. Bonds, (Great Hearts Academies), 5.00%, 7/1/44 | BBB | 1,700,000 | 1,700,665 | |
| Phoenix, Indl. Dev. Auth. Ed. 144A Rev. Bonds, (BASIS Schools, Inc.) | ||||
| Ser. A, 5.00%, 7/1/46 | BB | 250,000 | 230,952 | |
| 5.00%, 7/1/35 | BB | 900,000 | 902,866 | |
| Ser. A, 5.00%, 7/1/35 | BB | 600,000 | 601,910 | |
| Pima Cnty., Indl. Dev. Auth. Sr. Living 144A Rev. Bonds, (La Posada at Park Centre, Inc.), 6.875%, 11/15/52 | BBB+/P | 1,500,000 | 1,515,069 | |
| Salt Verde, Fin. Corp. Gas Rev. Bonds | ||||
| 5.50%, 12/1/29 | A3 | 2,000,000 | 2,158,256 | |
| 5.00%, 12/1/32 | A3 | 570,000 | 606,198 | |
| Yavapai Cnty., Indl. Dev. Auth. Hosp. Fac. Rev. Bonds | ||||
| (Yavapai Regl. Med.), 5.00%, 8/1/36 | A2 | 200,000 | 208,075 | |
| (Yavapai Regl. Med. Ctr.), 5.00%, 8/1/34 | A2 | 200,000 | 210,011 | |
Managed Municipal Income Trust 9 | |
| MUNICIPAL BONDS AND NOTES (133.4%)* cont. | Rating** | Principal amount | Value | |
| Arizona cont. | ||||
| Yavapai Cnty., Indl. Dev. Ed. Auth. Rev. Bonds, (Agribusiness & Equine Ctr.), 5.00%, 3/1/32 | BB+ | $920,000 | $908,958 | |
| Yavapai Cnty., Indl. Dev. Ed. Auth. 144A Rev. Bonds, Ser. A, 5.00%, 9/1/34 | BB+ | 500,000 | 488,139 | |
| 14,532,511 | ||||
| Arkansas (0.8%) | ||||
| AR Dev. Fin. Auth. Hlth. Care Rev. Bonds, (Baptist Health Oblig. Group) | ||||
| 5.00%, 12/1/47 | A | 600,000 | 626,832 | |
| 4.00%, 12/1/44 | A | 610,000 | 591,182 | |
| 4.00%, 12/1/39 | A | 585,000 | 582,150 | |
| 4.00%, 12/1/37 | A | 805,000 | 808,975 | |
| 2,609,139 | ||||
| California (11.4%) | ||||
| CA Cmnty. Hsg. Agcy. Essential Hsg. 144A Rev. Bonds | ||||
| (Aster Apt.), Ser. A-1, 4.00%, 2/1/56 | BB+/P | 475,000 | 392,211 | |
| (Fountains at Emerald Park), 4.00%, 8/1/46 | BB−/P | 2,460,000 | 1,978,977 | |
| CA Hsg. Fin. Agcy. Muni. Certif. Rev. Bonds, Ser. 21-1, Class A, 3.50%, 11/20/35 | BBB+ | 1,672,046 | 1,584,405 | |
| CA Pub. State Fin. Auth. Sr. Living 144A Rev. Bonds, (Enso Village Project), Ser. A, 5.00%, 11/15/56 | B−/P | 750,000 | 632,764 | |
| CA School Fin. Auth. Rev. Bonds, (2023 Union, LLC), Ser. A, 6.00%, 7/1/33 | BBB− | 465,000 | 466,558 | |
| CA State Infrastructure & Econ. Dev. Bank 144A Rev. Bonds, (WFCS Holdings II, LLC), Ser. B, zero %, 1/1/61 | B−/P | 4,455,000 | 234,684 | |
| CA State Muni. Fin. Auth. Rev. Bonds, (Orchard Park Student Hsg.), BAM, 3.00%, 5/15/54 | AA | 2,410,000 | 1,828,233 | |
| CA State Muni. Fin. Auth. Charter School Rev. Bonds, (Partnerships Uplift Cmnty.), Ser. A, 5.00%, 8/1/32 | BB+ | 665,000 | 635,522 | |
| CA State Poll. Control Fin. Auth. 144A Rev. Bonds, (Wtr. Furnishing), 5.00%, 11/21/45 | Baa3 | 1,000,000 | 999,946 | |
| CA State Tobacco Securitization Agcy. Rev. Bonds, (Gold Country Settlement Funding Corp.), Ser. B-2, zero %, 6/1/55 | BB/P | 5,570,000 | 1,138,783 | |
| CMFA Special Fin. Agcy. I 144A Rev. Bonds, (Social Bond), Ser. A-2, 4.00%, 4/1/56 | BB/P | 1,500,000 | 1,073,033 | |
| CSCDA Cmnty. Impt. Auth. Rev. Bonds, (Pasadena Portfolio), Ser. A-2, 3.00%, 12/1/56 | BBB−/P | 2,000,000 | 1,335,368 | |
| CSCDA Cmnty. Impt. Auth. 144A Rev. Bonds | ||||
| (Anaheim), 4.00%, 8/1/56 | BB/P | 2,725,000 | 2,047,280 | |
| (Jefferson-Anaheim), 3.125%, 8/1/56 | BB+/P | 1,125,000 | 772,304 | |
| (Jefferson-Anaheim), 2.875%, 8/1/41 | BB+/P | 920,000 | 778,280 | |
| Golden State Tobacco Securitization Corp. Rev. Bonds, Ser. B-2, zero %, 6/1/66 | BB+/P | 20,675,000 | 2,293,230 | |
| Hastings Campus HFA Rev. Bonds, (U. of CA Hastings College of the Law), Ser. A, 5.00%, 7/1/61 | BB−/P | 1,200,000 | 972,585 | |
| Los Angeles, Dept. of Arpt. Rev. Bonds, (Green Bond) | ||||
| 5.25%, 5/15/48 | Aa3 | 750,000 | 813,488 | |
| 4.125%, 5/15/43 | Aa3 | 500,000 | 491,639 | |
| Palm Desert, Special Tax, (Cmnty. Fac. Dist. 2021-1), 4.00%, 9/1/41 | B+/P | 450,000 | 417,421 | |
10 Managed Municipal Income Trust | |
| MUNICIPAL BONDS AND NOTES (133.4%)* cont. | Rating** | Principal amount | Value | |
| California cont. | ||||
| Regents of the U. of CA Med. Ctr. (The) Rev. Bonds, Ser. P, 5.00%, 5/15/41 T | Aa3 | $6,000,000 | $6,787,346 | |
| Sacramento, Special Tax, (Greenbriar Cmnty. Fac. Dist. No 2018-03), 4.00%, 9/1/46 | BB/P | 700,000 | 595,868 | |
| San Francisco, City & Cnty. Dev. 144A Special Tax, (Dist. No. 2020-1 Mission Rock Fac. & Svcs.), Ser. A, 4.00%, 9/1/41 | B+/P | 500,000 | 448,306 | |
| San Francisco, City & Cnty. Redev. Agcy. Cmnty. Successor Special Tax Bonds, (No. 6 Mission Bay Pub. Impts.), Ser. C | ||||
| zero %, 8/1/43 | BBB/P | 2,000,000 | 614,071 | |
| zero %, 8/1/38 | BBB/P | 2,000,000 | 828,609 | |
| San Joaquin Hills, Trans. Corridor Agcy. Toll Road Rev. Bonds, Ser. A | ||||
| 4.00%, 1/15/45 | A | 400,000 | 382,723 | |
| 4.00%, 1/15/44 | A | 100,000 | 96,056 | |
| 4.00%, 1/15/42 | A | 500,000 | 486,369 | |
| 4.00%, 1/15/41 | A | 500,000 | 488,313 | |
| Santa Clara Cnty., Fin. Auth. Rev. Bonds, Ser. Q, 3.00%, 5/15/34 | AA+ | 4,000,000 | 3,917,367 | |
| Sunnyvale, Special Tax Bonds, (Cmnty. Fac. Dist. No. 1), 7.75%, 8/1/32 | B+/P | 785,000 | 787,494 | |
| 36,319,233 | ||||
| Colorado (2.4%) | ||||
| CO State Edl. & Cultural Auth. Rev. Bonds, (Aspen View Academy, Inc.) | ||||
| 4.00%, 5/1/61 | Baa3 | 550,000 | 428,386 | |
| 4.00%, 5/1/51 | Baa3 | 350,000 | 285,177 | |
| 4.00%, 5/1/41 | Baa3 | 175,000 | 153,106 | |
| 4.00%, 5/1/36 | Baa3 | 150,000 | 140,060 | |
| CO State Educ. & Cultural Fac. Auth. Rev. Bonds, (Skyview Academy), 5.125%, 7/1/34 | BB | 755,000 | 755,579 | |
| CO State Hlth. Fac. Auth. Hosp. Rev. Bonds, (Christian Living Neighborhood) | ||||
| 5.00%, 1/1/37 | BB/P | 1,250,000 | 1,105,619 | |
| 5.00%, 1/1/31 | BB/P | 500,000 | 472,829 | |
| Park Creek, Metro. Dist. Tax Alloc. Bonds, (Sr. Ltd. Property Tax Supported), Ser. A, 5.00%, 12/1/45 | A/F | 225,000 | 228,718 | |
| Plaza, Tax Alloc. Bonds, (Metro. Dist. No. 1), 5.00%, 12/1/40 | BB−/P | 1,650,000 | 1,573,621 | |
| RainDance Metro. Dist. No. 1 Rev. Bonds, (Non-Potable Wtr. Enterprise), 5.25%, 12/1/50 | B+/P | 875,000 | 790,484 | |
| Rampart Range Metro. Distr. Rev. Bonds, (Dist. No. 5), 4.00%, 12/1/41 | BB−/P | 1,000,000 | 778,827 | |
| Southlands, Metro. Dist. No. 1 G.O. Bonds, Ser. A-1, 5.00%, 12/1/37 | Ba1 | 500,000 | 493,463 | |
| Sterling Ranch Cmnty. Auth. Board Rev. Bonds, (Metro. Dist. No. 2), Ser. A, 4.25%, 12/1/50 | BB/P | 450,000 | 354,052 | |
| 7,559,921 | ||||
Managed Municipal Income Trust 11 | |
| MUNICIPAL BONDS AND NOTES (133.4%)* cont. | Rating** | Principal amount | Value | |
| Connecticut (0.5%) | ||||
| Harbor Point Infrastructure Impt. Dist. 144A Tax Alloc. Bonds, (Harbor Point Ltd.), 5.00%, 4/1/39 | BB/P | $1,500,000 | $1,500,187 | |
| 1,500,187 | ||||
| Delaware (1.0%) | ||||
| DE State Econ. Dev. Auth. Rev. Bonds | ||||
| (ASPIRA of Delaware Charter Operations, Inc.), Ser. A, 5.00%, 6/1/51 | BB | 1,035,000 | 924,791 | |
| (ASPIRA Charter School), Ser. A, 5.00%, 6/1/36 | BB | 705,000 | 696,314 | |
| Millsboro Special Oblig. 144A Special Tax, (Plantation Lakes), 5.25%, 7/1/48 | BB−/P | 999,000 | 962,528 | |
| Millsboro Special Oblig. 144A Tax Alloc. Bonds, (Plantation Lakes Special Dev. Dist.), 5.125%, 7/1/38 | BB−/P | 490,000 | 483,263 | |
| 3,066,896 | ||||
| District of Columbia (3.6%) | ||||
| DC Rev. Bonds | ||||
| (Plenary Infrastructure DC, LLC), 5.50%, 8/31/36 | A3 | 1,365,000 | 1,468,194 | |
| (Plenary Infrastructure DC, LLC), 5.50%, 8/31/35 | A3 | 1,140,000 | 1,241,669 | |
| (Ingleside at Rock Creek), Ser. A, 5.00%, 7/1/52 | BB−/P | 1,000,000 | 834,309 | |
| (DC Intl. School), 5.00%, 7/1/49 | BBB | 1,275,000 | 1,277,280 | |
| (Latin American Montessori Bilingual Pub. Charter School Oblig. Group), 5.00%, 6/1/40 | BB+ | 1,500,000 | 1,446,508 | |
| (DC Intl. School), 5.00%, 7/1/39 | BBB | 400,000 | 408,040 | |
| (KIPP DC), 4.00%, 7/1/44 | BBB+ | 750,000 | 663,557 | |
| DC 144A Rev. Bonds, (Rocketship DC Oblig. Group), Ser. 21-A, 5.00%, 6/1/61 | BB/P | 400,000 | 338,250 | |
| DC Tobacco Settlement Fin. Corp. Rev. Bonds, Ser. A, zero %, 6/15/46 | CCC/P | 7,500,000 | 1,732,351 | |
| Metro. Washington DC, Arpt. Auth. Dulles Toll Rd. Rev. Bonds | ||||
| (Dulles Metrorail & Cap. Impt. Proj.) 4.00%, 10/1/53 T | A− | 1,065,000 | 983,769 | |
| (Dulles Metrorail & Cap. Impt. Proj.) Ser. B, 4.00%, 10/1/44 T | A− | 1,060,000 | 1,023,101 | |
| 11,417,028 | ||||
| Florida (7.8%) | ||||
| Cap. Trust Agcy. Rev. Bonds, (Wonderful Foundation Charter School Holdings, LLC), zero %, 1/1/60 | B/P | 6,000,000 | 328,767 | |
| Cap. Trust Agcy. 144A Rev. Bonds | ||||
| (WFCS Holdings II, LLC), Ser. A-1, 5.00%, 1/1/56 | BB/P | 900,000 | 680,978 | |
| (Wonderful Foundation Charter School Holdings, LLC), 4.50%, 1/1/35 | BB−/P | 750,000 | 679,983 | |
| Charlotte Cnty., Indl. Dev. Auth. Util. Syst. 144A Rev. Bonds, (MSKP Town & Country Util., LLC), Ser. A, 4.00%, 10/1/51 | B+/P | 1,000,000 | 772,192 | |
| Fishhawk, CCD IV Special Assmt. Bonds, 7.25%, 5/1/43 (Prerefunded 5/1/23) | B/P | 370,000 | 370,000 | |
| FL State Dev. Fin Corp. Sr. Living Rev. Bonds, (Glenridge on Palmer Ranch Oblig. Group), 5.00%, 6/1/51 | BB/P | 700,000 | 554,686 | |
12 Managed Municipal Income Trust | |
| MUNICIPAL BONDS AND NOTES (133.4%)* cont. | Rating** | Principal amount | Value | |
| Florida cont. | ||||
| FL State Higher Edl. Fac. Financial Auth. Rev. Bonds | ||||
| (St. Leo U., Inc. Oblig. Group), 5.00%, 3/1/49 | BB+ | $365,000 | $316,919 | |
| (St. Leo U.), 5.00%, 3/1/44 | BB+ | 1,370,000 | 1,221,641 | |
| Halifax Hosp. Med. Ctr. Rev. Bonds, 5.00%, 6/1/36 | A− | 1,300,000 | 1,346,171 | |
| Lake Cnty., Retirement Fac. Rev. Bonds, (Waterman Cmnty., Inc.), 5.75%, 8/15/55 | B/P | 750,000 | 629,677 | |
| Lakewood Ranch, Stewardship Dist. Special Assessment Bonds, (Village of Lakewood Ranch South), 5.125%, 5/1/46 | B+/P | 745,000 | 721,951 | |
| Lakewood Ranch, Stewardship Dist. Special Assmt., (Azario), 4.00%, 5/1/40 | B+/P | 1,000,000 | 868,012 | |
| Lakewood Ranch, Stewardship Dist. 144A Special Assmt., 4.00%, 5/1/50 | B/P | 250,000 | 197,659 | |
| Miami-Dade Cnty., Indl. Dev. Auth. Rev. Bonds, (Pinecrest Academy, Inc.), 5.00%, 9/15/34 | BBB | 1,240,000 | 1,264,226 | |
| Orange Cnty., Hlth. Fac. Auth. Rev. Bonds, (Orlando Hlth.), 5.00%, 10/1/53 | A+ | 4,000,000 | 4,240,364 | |
| Palm Beach Cnty., Rev. Bonds, (Lynn U. Hsg.), Ser. A, 5.00%, 6/1/57 | B+/P | 625,000 | 537,901 | |
| Palm Beach Cnty., 144A Rev. Bonds, (PBAU Hsg.), Ser. A, 5.00%, 4/1/39 | Ba1 | 500,000 | 480,867 | |
| Pinellas Cnty., Indl. Dev. Auth. Rev. Bonds, (2017 Foundation for Global Understanding, Inc.), 5.00%, 7/1/39 | BBB+/P | 1,690,000 | 1,692,895 | |
| Sarasota Cnty., Hlth. Fac. Auth. Rev. Bonds, (Village on the Isle), Ser. A, 5.00%, 1/1/37 | BB+/F | 1,000,000 | 916,297 | |
| Sarasota Cnty., Pub. Hosp. Dist. Rev. Bonds, (Sarasota Memorial Hosp.), 4.00%, 7/1/48 | A1 | 1,500,000 | 1,405,475 | |
| St. John’s Cnty., Indl. Dev. Auth. Rev. Bonds, (Life Care Ponte Vedra Oblig. Group), Ser. A | ||||
| 4.00%, 12/15/41 | BB+/F | 500,000 | 386,866 | |
| 4.00%, 12/15/36 | BB+/F | 355,000 | 296,563 | |
| Tallahassee, Hlth. Fac. Rev. Bonds, (Tallahassee Memorial HealthCare, Inc.), Ser. A, 5.00%, 12/1/55 | Baa1 | 1,000,000 | 998,292 | |
| Verandah, West Cmnty. Dev. Dist. Special Assmt. Bonds, (Cap. Impt.), 5.00%, 5/1/33 | B+/P | 490,000 | 490,046 | |
| Village Cmnty. Dev. Dist. No. 10 Special Assmt. Bonds, 5.75%, 5/1/31 (Prerefunded 5/5/23) | BB/P | 745,000 | 745,146 | |
| Village Cmnty. Dev. Dist. No. 12 144A Special Assessment Bonds, 4.00%, 5/1/33 | BB−/P | 685,000 | 669,531 | |
| Village, 144A Special Assmt., (Village Cmnty. Dev. Dist. No. 13), 3.25%, 5/1/40 | BB−/P | 2,430,000 | 1,883,311 | |
| 24,696,416 | ||||
| Georgia (6.4%) | ||||
| Cobb Cnty., Dev. Auth. Student Hsg. Rev. Bonds, (Kennesaw State U. Real Estate) | ||||
| 5.00%, 7/15/38 | Baa2 | 740,000 | 740,403 | |
| 5.00%, 7/15/38 (Prerefunded 7/15/25) | AAA/P | 25,000 | 26,151 | |
| 5.00%, 7/15/30 | Baa2 | 685,000 | 692,921 | |
| 5.00%, 7/15/30 (Prerefunded 7/15/25) | AAA/P | 15,000 | 15,691 | |
| Coweta Cnty., Dev. Auth. Rev. Bonds, (Piedmont Healthcare, Inc.), 5.00%, 7/1/44 | AA− | 4,000,000 | 4,167,788 | |
Managed Municipal Income Trust 13 | |
| MUNICIPAL BONDS AND NOTES (133.4%)* cont. | Rating** | Principal amount | Value | |
| Georgia cont. | ||||
| Geo L Smith II GA Congress Ctr. 144A Rev. Bonds, (Signia Hotel Mgt., LLC.) | ||||
| 5.00%, 1/1/54 | BB−/P | $1,480,000 | $1,186,299 | |
| 5.00%, 1/1/36 | BB−/P | 850,000 | 784,744 | |
| Main Street Natural Gas, Inc. Gas Supply Rev. Bonds, Ser. A, 5.00%, 5/15/34 | A3 | 3,345,000 | 3,478,388 | |
| Muni. Election Auth. of GA Rev. Bonds, (Plant Vogtle Units 3 & 4) | ||||
| Ser. A, 5.50%, 7/1/60 | A | 2,000,000 | 2,028,290 | |
| AGM, 5.00%, 7/1/48 | AA | 1,500,000 | 1,593,567 | |
| AGM, 5.00%, 7/1/48 | AA | 1,000,000 | 1,062,378 | |
| 4.50%, 7/1/63 | A | 2,250,000 | 2,212,711 | |
| Ser. A, 4.00%, 1/1/59 | A2 | 2,000,000 | 1,809,340 | |
| Ser. A, 4.00%, 1/1/49 | A2 | 500,000 | 471,257 | |
| 20,269,928 | ||||
| Illinois (17.6%) | ||||
| Chicago, G.O. Bonds | ||||
| Ser. A, 5.50%, 1/1/49 | BBB+ | 1,000,000 | 1,042,327 | |
| Ser. A, 5.00%, 1/1/40 | BBB+ | 2,000,000 | 2,041,239 | |
| Ser. A, 5.00%, 1/1/30 | BBB+ | 1,800,000 | 1,943,159 | |
| Ser. B, 4.00%, 1/1/38 | BBB+ | 2,747,000 | 2,557,671 | |
| Chicago, Special Assmt. | ||||
| 3.38%, 12/1/31 | BBB/P | 367,000 | 335,596 | |
| 3.04%, 12/1/28 | BBB/P | 270,000 | 251,255 | |
| Chicago, Board of Ed. G.O. Bonds | ||||
| Ser. C, 5.25%, 12/1/39 | BB+ | 1,500,000 | 1,508,416 | |
| Ser. A, 5.00%, 12/1/47 | BB+ | 1,750,000 | 1,742,567 | |
| Ser. A, 5.00%, 12/1/40 | BB+ | 500,000 | 505,271 | |
| Ser. H, 5.00%, 12/1/36 | BB+ | 2,100,000 | 2,132,509 | |
| Chicago, O’Hare Intl. Arpt. Rev. Bonds, Ser. A | ||||
| AGM, 5.50%, 1/1/53 | AA | 10,000,000 | 10,829,826 | |
| 5.00%, 1/1/38 | A+ | 700,000 | 738,271 | |
| Cook Cnty., G.O. Bonds, 5.00%, 11/15/35 | A+ | 500,000 | 517,261 | |
| Du Page Cnty., Special Svc. Area No. 31 Special Tax Bonds, (Monarch Landing), 5.625%, 3/1/36 | B/P | 273,000 | 270,016 | |
| IL State G.O. Bonds | ||||
| Ser. B, 5.25%, 5/1/41 ## | A3 | 3,100,000 | 3,372,693 | |
| Ser. A, 5.00%, 5/1/38 | A3 | 1,000,000 | 1,048,698 | |
| Ser. B, 5.00%, 10/1/31 | A3 | 2,000,000 | 2,165,956 | |
| Ser. A, 5.00%, 12/1/28 | A3 | 1,760,000 | 1,888,477 | |
| IL State Fin. Auth. Rev. Bonds | ||||
| (Plymouth Place Oblig. Group), 5.00%, 5/15/56 | BB+/F | 815,000 | 632,510 | |
| (Plymouth Place Oblig. Group), 5.00%, 5/15/51 | BB+/F | 1,000,000 | 795,740 | |
| (Plymouth Place Oblig. Group), 5.00%, 5/15/41 | BB+/F | 400,000 | 342,874 | |
| (Southern IL Healthcare Enterprises, Inc.), 5.00%, 3/1/33 | A | 700,000 | 735,699 | |
| (Riverside Hlth. Syst.), 4.00%, 11/15/35 | A+ | 500,000 | 507,114 | |
| IL State Fin. Auth. Student Hsg. & Academic Fac. Rev. Bonds | ||||
| (CHF-Chicago, LLC), 5.00%, 2/15/47 | Baa3 | 1,500,000 | 1,435,533 | |
| (U. of IL-CHF-Chicago, LLC), Ser. A, 5.00%, 2/15/37 | Baa3 | 1,200,000 | 1,204,500 | |
14 Managed Municipal Income Trust | |
| MUNICIPAL BONDS AND NOTES (133.4%)* cont. | Rating** | Principal amount | Value | |
| Illinois cont. | ||||
| Metro. Pier & Exposition Auth. Rev. Bonds, (McCormick Place Expansion) | ||||
| Ser. A, 5.00%, 6/15/50 | A | $3,000,000 | $3,033,521 | |
| 4.00%, 6/15/52 | A | 1,000,000 | 860,563 | |
| Ser. B, stepped-coupon zero % (4.95%, 6/15/31), 12/15/47 †† | A | 1,500,000 | 910,141 | |
| Metro. Wtr. Reclamation Dist. of Greater Chicago G.O. Bonds, Ser. A, 5.00%, 12/1/31 | AA+ | 1,000,000 | 1,060,808 | |
| Northern IL U. Rev. Bonds, Ser. B, BAM | ||||
| 5.00%, 4/1/33 | AA | 625,000 | 672,802 | |
| 5.00%, 4/1/31 | AA | 500,000 | 543,920 | |
| 4.00%, 4/1/40 | AA | 610,000 | 571,956 | |
| 4.00%, 4/1/39 | AA | 500,000 | 475,068 | |
| Sales Tax Securitization Corp. Rev. Bonds | ||||
| Ser. C, 5.50%, 1/1/36 | AA− | 2,000,000 | 2,197,697 | |
| Ser. A, 5.00%, 1/1/36 | AA− | 1,600,000 | 1,730,941 | |
| Ser. A, 4.00%, 1/1/39 | AA− | 1,750,000 | 1,725,786 | |
| Ser. A, 4.00%, 1/1/38 | AA− | 1,750,000 | 1,739,679 | |
| 56,068,060 | ||||
| Iowa (0.3%) | ||||
| IA Tobacco Settlement Auth. Rev. Bonds, Ser. B-1, Class 2, 4.00%, 6/1/49 | BBB+ | 945,000 | 935,754 | |
| 935,754 | ||||
| Kansas (0.3%) | ||||
| Wichita, Hlth. Care Fac. Rev. Bonds, (Presbyterian Manors), Ser. I, 5.00%, 5/15/33 | BB−/P | 500,000 | 466,987 | |
| Wyandotte, Cnty./Kansas City, Unified Govt. 144A Rev. Bonds, (Legends Apt. Garage & West Lawn), 4.50%, 6/1/40 | BB+/P | 370,000 | 340,903 | |
| 807,890 | ||||
| Kentucky (2.0%) | ||||
| KY Econ. Dev. Fin. Auth. Rev. Bonds, (Masonic Home Indpt. Living), 5.00%, 5/15/46 | BB/P | 1,000,000 | 746,203 | |
| KY State Econ. Dev. Fin. Auth. Rev. Bonds, (Owensboro Hlth.), Ser. A, 5.25%, 6/1/41 | Baa2 | 125,000 | 128,558 | |
| KY State Econ. Dev. Fin. Auth. Hlth. Care Rev. Bonds, (Masonic Homes of KY), 5.375%, 11/15/42 | BB−/P | 900,000 | 745,524 | |
| KY State Pub. Energy Auth. Gas Supply Mandatory Put Bonds (6/1/25), Ser. C-1, 4.00%, 12/1/49 | A1 | 4,635,000 | 4,642,707 | |
| 6,262,992 | ||||
| Louisiana (2.0%) | ||||
| LA Pub. Fac. Auth. Rev. Bonds | ||||
| (Tulane U.), Ser. A, 5.00%, 10/15/48 | A1 | 1,000,000 | 1,077,475 | |
| (U. of Tulane), 4.00%, 12/15/50 (Prerefunded 12/15/27) | AAA/P | 20,000 | 21,185 | |
| LA State Pub. Fac. Auth. Rev. Bonds, (LA State U. Greenhouse Phase III), Ser. A, 5.00%, 7/1/59 | A3 | 1,500,000 | 1,524,513 | |
| St. John The Baptist Parish Mandatory Put Bonds (7/1/26), (Marathon Oil Corp.), Ser. A-3, 2.20%, 6/1/37 | Baa3 | 3,500,000 | 3,294,533 | |
| St. Tammany, Public Trust Fin. Auth. Rev. Bonds, (Christwood), 5.25%, 11/15/37 | BB/P | 385,000 | 361,148 | |
| 6,278,854 | ||||
Managed Municipal Income Trust 15 | |
| MUNICIPAL BONDS AND NOTES (133.4%)* cont. | Rating** | Principal amount | Value | |
| Maine (0.2%) | ||||
| ME State Fin. Auth. Solid Waste Disp. 144A Mandatory Put Bonds (8/1/25), (Casella Waste Syst.), 5.125%, 8/1/35 | B1 | $500,000 | $503,385 | |
| 503,385 | ||||
| Maryland (1.5%) | ||||
| Brunswick, Special Tax, 5.00%, 7/1/36 | B+/P | 549,000 | 556,001 | |
| Frederick Cnty., Special Tax Bonds, (Oakdale-Lake Linganore), 3.75%, 7/1/39 | BB/P | 1,410,000 | 1,237,942 | |
| Frederick Cnty., Edl. Fac. 144A Rev. Bonds, (Mount St. Mary’s U.), Ser. A, 5.00%, 9/1/37 | BB+ | 500,000 | 476,348 | |
| MD State Econ. Dev. Corp. Tax Alloc. Bonds, (Port Covington) | ||||
| 4.00%, 9/1/50 | B+/P | 750,000 | 619,897 | |
| 4.00%, 9/1/40 | B+/P | 755,000 | 670,056 | |
| Prince Georges Cnty., Special Oblig. 144A Tax Alloc. Bonds, (Westphalia Town Ctr.), 5.125%, 7/1/39 | B/P | 1,000,000 | 989,641 | |
| Westminster, Rev. Bonds, (Lutheran Village at Miller’s Grant, Inc. (The)), Ser. A, 6.00%, 7/1/34 | BB+/P | 250,000 | 252,547 | |
| 4,802,432 | ||||
| Massachusetts (4.7%) | ||||
| Lowell, Collegiate Charter School Rev. Bonds | ||||
| 5.00%, 6/15/54 | BB−/P | 1,250,000 | 1,134,897 | |
| 5.00%, 6/15/39 | BB−/P | 1,000,000 | 972,975 | |
| MA State G.O. Bonds, Ser. E, 5.00%, 11/1/47 | Aa1 | 7,950,000 | 8,856,101 | |
| MA State Dev. Fin. Agcy. 144A Rev. Bonds, (Linden Ponds, Inc. Fac.) | ||||
| 5.125%, 11/15/46 | A/F | 1,000,000 | 1,016,736 | |
| 5.00%, 11/15/38 | A/F | 500,000 | 512,532 | |
| MA State Dev. Fin. Agcy. Hlth. Care Fac. 144A Rev. Bonds, (Adventcare), Ser. A, 6.65%, 10/15/28 (In default) † | D/P | 995,000 | 99,500 | |
| MA State Trans. Fund Rev. Bonds, (Rail Enhancement Program), Ser. A, 5.00%, 6/1/50 | AAA | 2,000,000 | 2,188,224 | |
| 14,780,965 | ||||
| Michigan (5.1%) | ||||
| Detroit, G.O. Bonds | ||||
| 5.00%, 4/1/37 | Ba1 | 750,000 | 761,668 | |
| (Fin. Recvy.), Ser. B-1, 4.00%, 4/1/44 | BB/P | 1,400,000 | 1,032,924 | |
| Flint, Hosp. Bldg. Auth. Rev. Bonds, Ser. A, 5.25%, 7/1/39 | Ba1 | 750,000 | 750,607 | |
| Kentwood, Economic Dev. Corp. Rev. Bonds, (Holland Home Obligated Group) | ||||
| 5.00%, 11/15/41 | BBB−/F | 1,000,000 | 933,510 | |
| 5.00%, 11/15/32 | BBB−/F | 1,250,000 | 1,249,036 | |
| MI State Fin. Auth. Ltd. Oblig. Rev. Bonds, (Lawrence Technological U.), 5.00%, 2/1/47 | BBB− | 2,150,000 | 1,999,069 | |
| MI State Fin. Auth. Ltd. Oblig. Higher Ed. Fac. Rev. Bonds, (Aquinas College), 5.00%, 5/1/46 | BB/P | 1,000,000 | 840,010 | |
| MI State Hsg. Dev. Auth. Rev. Bonds, Ser. A, 2.73%, 10/1/59 | AA+ | 1,000,000 | 628,227 | |
16 Managed Municipal Income Trust | |
| MUNICIPAL BONDS AND NOTES (133.4%)* cont. | Rating** | Principal amount | Value | |
| Michigan cont. | ||||
| MI State Strategic Fund Ltd. Oblig. Rev. Bonds, (Holland Home Oblig. Group), 5.00%, 11/15/43 | BBB−/F | $500,000 | $459,079 | |
| Pontiac City, G.O. Bonds, (Pontiac School Dist.), Q-SBLF | ||||
| 4.00%, 5/1/45 T | Aa1 | 3,576,000 | 3,578,603 | |
| 4.00%, 5/1/50 T | Aa1 | 4,023,000 | 3,954,783 | |
| 16,187,516 | ||||
| Minnesota (0.9%) | ||||
| Baytown Twp., Lease Rev. Bonds, Ser. A, 4.00%, 8/1/41 | BB+ | 380,000 | 307,782 | |
| Ham Lake, Charter School Lease Rev. Bonds, (DaVinci Academy of Arts & Science), Ser. A, 5.00%, 7/1/47 | BB−/P | 500,000 | 451,319 | |
| MN State Higher Ed. Fac. Auth. Rev. Bonds, (Augsburg U.), Ser. A, 5.00%, 5/1/46 | Ba1 | 1,250,000 | 1,137,151 | |
| St. Paul, Port Auth. Lease Rev. Bonds, (Regions Hosp. Pkg. Ramp), Ser. 1, 5.00%, 8/1/36 | A−/P | 1,075,000 | 1,075,226 | |
| 2,971,478 | ||||
| Missouri (1.5%) | ||||
| Cape Girardeau Cnty., Indl. Dev. Auth. Rev. Bonds, (SoutheastHEALTH Oblig. Group), 4.00%, 3/1/41 | Ba1 | 1,500,000 | 1,304,084 | |
| Saint Louis, Indl. Dev. Auth. Fin. Rev. Bonds, (Ballpark Village Dev.), Ser. A, 4.75%, 11/15/47 | BB−/P | 875,000 | 652,052 | |
| St. Louis Cnty., Indl. Dev. Auth. Sr. Living Fac. Rev. Bonds, (Friendship Village), 5.25%, 9/1/53 | BB+/F | 3,250,000 | 2,833,852 | |
| 4,789,988 | ||||
| Montana (1.1%) | ||||
| MT State Fac. Fin. Auth. Rev. Bonds, (Billings Clinic Oblig. Group), Ser. A | ||||
| 5.00%, 8/15/34 | AA− | 1,500,000 | 1,747,715 | |
| 5.00%, 8/15/32 | AA− | 1,365,000 | 1,605,010 | |
| 3,352,725 | ||||
| Nevada (0.8%) | ||||
| Clark Cnty., Impt. Dist. No. 159 Special Assessment Bonds, (Summerlin Village 16A), 5.00%, 8/1/32 | B+/P | 410,000 | 414,309 | |
| Las Vegas, Special Assmt. Bonds | ||||
| (Dist. No. 815), 5.00%, 12/1/49 | B+/P | 625,000 | 593,284 | |
| (Special Impt. Dist. No. 816), 3.00%, 6/1/41 | BB−/P | 650,000 | 472,185 | |
| Las Vegas, Impt. Dist. No. 812 Special Assessment Bonds, (Summerlin Village 24), 5.00%, 12/1/35 | B/P | 220,000 | 221,500 | |
| Las Vegas, Special Impt. Dist. No. 814 Special Assmt., (Summerlin Village No. 21 and 24A) | ||||
| 4.00%, 6/1/44 | BB−/P | 615,000 | 526,080 | |
| 4.00%, 6/1/39 | BB−/P | 435,000 | 391,516 | |
| 2,618,874 | ||||
| New Hampshire (0.4%) | ||||
| NH State Hlth. & Ed. Fac. Auth. Rev. Bonds | ||||
| (Elliot Hosp.), 5.00%, 10/1/38 | A3 | 250,000 | 251,912 | |
| (Southern NH Med. Ctr.), 5.00%, 10/1/37 | A− | 1,000,000 | 1,022,556 | |
| NH State Hlth. & Ed. Fac. Auth. 144A Rev. Bonds, (Hillside Village), Ser. A, 6.25%, 7/1/42 (In default) † | D/P | 626,090 | 137,740 | |
| 1,412,208 | ||||
Managed Municipal Income Trust 17 | |
| MUNICIPAL BONDS AND NOTES (133.4%)* cont. | Rating** | Principal amount | Value | |
| New Jersey (4.2%) | ||||
| Atlantic City, G.O. Bonds, (Tax Appeal), Ser. B, AGM, 4.00%, 3/1/42 | AA | $1,250,000 | $1,240,278 | |
| NJ State Econ. Dev. Auth. Rev. Bonds | ||||
| (Ashland School, Inc.), 6.00%, 10/1/33 | BBB | 950,000 | 961,165 | |
| (NYNJ Link Borrower, LLC), 5.375%, 1/1/43 | BBB+ | 1,000,000 | 1,003,565 | |
| (North Star Academy Charter School of Newark, Inc.), 5.00%, 7/15/47 | BBB− | 1,000,000 | 1,008,439 | |
| NJ State Econ. Dev. Auth. Fac. Rev. Bonds, (Continental Airlines, Inc.), 5.625%, 11/15/30 | Ba3 | 500,000 | 507,451 | |
| NJ State Econ. Dev. Auth. Special Fac. Rev. Bonds, (Port Newark Container Term., LLC), 5.00%, 10/1/37 | Baa2 | 1,500,000 | 1,507,006 | |
| NJ State Trans. Trust Fund Auth. Rev. Bonds | ||||
| Ser. AA, 5.00%, 6/15/38 | A2 | 1,800,000 | 1,916,419 | |
| Ser. AA, 5.00%, 6/15/37 | A2 | 400,000 | 441,866 | |
| Ser. AA, 5.00%, 6/15/36 | A2 | 475,000 | 529,719 | |
| Ser. A, 5.00%, 12/15/34 | A2 | 2,600,000 | 2,827,429 | |
| Passaic Cnty., Impt. Auth. Rev. Bonds, (Paterson Arts & Science Charter School), 5.50%, 7/1/58 | BBB− | 450,000 | 457,942 | |
| South Jersey, Trans. Auth. Syst. Rev. Bonds, Ser. A, BAM, 5.25%, 11/1/52 | AA | 1,000,000 | 1,092,431 | |
| 13,493,710 | ||||
| New Mexico (0.1%) | ||||
| Sante Fe, Retirement Fac. Rev. Bonds, (El Castillo Retirement Residences), Ser. A, 5.00%, 5/15/39 | BB+/F | 500,000 | 445,633 | |
| 445,633 | ||||
| New York (10.3%) | ||||
| Metro. Trans. Auth. Rev. Bonds, Ser. C-1, 4.00%, 11/15/35 | A3 | 3,000,000 | 2,994,633 | |
| NY City, Transitional Fin. Auth. Rev. Bonds, Ser. B-1, 4.00%, 11/1/41 T | Aa1 | 5,000,000 | 5,456,270 | |
| NY Counties, Tobacco Trust VI Rev. Bonds, (Tobacco Settlement Pass Through), Ser. A-2B, 5.00%, 6/1/51 | BB+/P | 1,700,000 | 1,590,567 | |
| NY State Dorm. Auth. Personal Income Tax Rev. Bonds, Ser. A, 5.00%, 3/15/46 T | AA+ | 4,500,000 | 4,932,657 | |
| NY State Env. Fac. Corp. Solid Waste Disp. Mandatory Put Bonds (9/2/25), (Casella Waste Syst., Inc.), Ser. R-1, 2.75%, 9/1/50 | B+ | 225,000 | 214,924 | |
| NY State Liberty Dev. Corp. Rev. Bonds | ||||
| Ser. A, BAM, 3.00%, 11/15/51 | AA | 3,000,000 | 2,216,225 | |
| (4 World Trade Ctr.), 3.00%, 11/15/51 | A+ | 4,215,000 | 3,065,150 | |
| 2.875%, 11/15/46 | A+ | 1,860,000 | 1,361,255 | |
| NY State Liberty Dev. Corp. 144A Rev. Bonds, (World Trade Ctr.), Class 2, 5.375%, 11/15/40 | BB−/P | 750,000 | 750,583 | |
| NY State Thruway Auth. Rev. Bonds, Ser. A, 5.00%, 3/15/46 | AA+ | 5,000,000 | 5,490,995 | |
| NY State Trans. Special Fac. Dev. Corp. Rev. Bonds, (Delta Air Lines, Inc.), 5.00%, 10/1/40 | Baa3 | 1,250,000 | 1,283,144 | |
| Port Auth. of NY & NJ Rev. Bonds, Ser. 218, 5.00%, 11/1/49 T | Aa3 | 2,460,000 | 2,563,126 | |
| Suffolk, Tobacco Asset Securitization Corp. Rev. Bonds, Ser. A-2, 4.00%, 6/1/50 | BBB+ | 800,000 | 716,947 | |
| 32,636,476 | ||||
18 Managed Municipal Income Trust | |
| MUNICIPAL BONDS AND NOTES (133.4%)* cont. | Rating** | Principal amount | Value | |
| North Carolina (1.6%) | ||||
| NC State Med. Care Comm. Hlth. Care Fac. Rev. Bonds, (Lutheran Svcs. for the Aging, Inc. Oblig. Group), Ser. C, 4.00%, 3/1/36 | BB/P | $2,320,000 | $1,945,584 | |
| NC State Med. Care Comm. Retirement Fac. Rev. Bonds | ||||
| (Maryfield, Inc. Oblig. Group), 5.00%, 10/1/45 | BB/P | 500,000 | 454,231 | |
| (Twin Lakes Cmnty.), Ser. A, 5.00%, 1/1/38 | BBB/F | 1,750,000 | 1,744,480 | |
| (Southminister, Inc.), 5.00%, 10/1/37 | BB/P | 965,000 | 893,787 | |
| 5,038,082 | ||||
| Ohio (3.0%) | ||||
| Buckeye, Tobacco Settlement Fin. Auth. Rev. Bonds | ||||
| Ser. B-2, Class 2, 5.00%, 6/1/55 | BB/P | 475,000 | 443,419 | |
| Ser. A-2, Class 1, 3.00%, 6/1/48 | BBB+ | 1,300,000 | 956,221 | |
| Cleveland-Cuyahoga Cnty., Port Auth. Cultural Fac. Rev. Bonds, (Playhouse Square Foundation), 5.50%, 12/1/53 | BB+ | 1,500,000 | 1,507,070 | |
| OH State Air Quality Dev. Auth. Exempt Fac. 144A Rev. Bonds, (Pratt Paper, LLC), 4.50%, 1/15/48 | BB+/P | 1,200,000 | 1,108,943 | |
| OH State Higher Edl. Fac. Comm. Rev. Bonds, (John Carroll U.), 4.00%, 10/1/45 | Baa1 | 3,400,000 | 2,953,802 | |
| OH State Private Activity Rev. Bonds, (Portsmouth Bypass), AGM, 5.00%, 12/31/35 | AA | 750,000 | 757,491 | |
| Port of Greater Cincinnati Dev. Auth. 144A Rev. Bonds, 4.25%, 12/1/50 | BB/P | 1,440,000 | 1,105,370 | |
| Southeastern OH Port Auth. Hosp. Fac. Rev. Bonds, (Memorial Hlth. Syst. Oblig. Group), 5.00%, 12/1/43 | B+/F | 150,000 | 123,628 | |
| Washington Cnty, Hosp. Rev. Bonds, (Marietta Area Hlth. Care, Inc.), 6.75%, 12/1/52 | B+/P | 500,000 | 501,815 | |
| 9,457,759 | ||||
| Oregon (0.4%) | ||||
| Multnomah Cnty., Hosp. Fac. Auth. Rev. Bonds, (Terwilliger Plaza, Inc.), 5.00%, 12/1/29 | BB+/F | 350,000 | 346,509 | |
| Warm Springs, Reservation Confederated Tribes 144A Rev. Bonds, (Pelton-Round Butte), Ser. B | ||||
| 5.00%, 11/1/36 | A3 | 500,000 | 548,782 | |
| 5.00%, 11/1/34 | A3 | 200,000 | 222,646 | |
| 1,117,937 | ||||
| Pennsylvania (3.4%) | ||||
| Allegheny Cnty., Hosp. Dev. Auth. Rev. Bonds, (Allegheny Hlth. Network Oblig. Group), Ser. A, 5.00%, 4/1/35 | A | 1,200,000 | 1,275,775 | |
| Chester Cnty., Indl. Dev. Auth. Rev. Bonds | ||||
| (Collegium Charter School), Ser. A, 5.125%, 10/15/37 | BB | 750,000 | 730,200 | |
| (Renaissance Academy Charter School), 5.00%, 10/1/34 | BBB− | 350,000 | 351,796 | |
| Chester Cnty., Indl. Dev. Auth. Student Hsg. Rev. Bonds, (West Chester U. Student Hsg., LLC), Ser. A, 5.00%, 8/1/45 | Ba2 | 1,000,000 | 944,743 | |
| Cumberland Cnty., Muni. Auth. Rev. Bonds, (Asbury PA Obligated Group), 5.00%, 1/1/45 | BB+/P | 500,000 | 428,964 | |
Managed Municipal Income Trust 19 | |
| MUNICIPAL BONDS AND NOTES (133.4%)* cont. | Rating** | Principal amount | Value | |
| Pennsylvania cont. | ||||
| Dallas, Area Muni. Auth. U. Rev. Bonds, (Misericordia U.), 5.00%, 5/1/48 | Baa3 | $1,500,000 | $1,416,833 | |
| Maxatawny Twp., Muni. Auth. Rev. Bonds, (Diakon Lutheran Social Ministries), Ser. A | ||||
| 5.00%, 1/1/42 | BBB+/F | 1,450,000 | 1,385,501 | |
| 5.00%, 1/1/41 | BBB+/F | 1,400,000 | 1,345,899 | |
| Moon, Indl. Dev. Auth. Rev. Bonds, (Baptist Homes Society Oblig. Group), 5.75%, 7/1/35 | B+/P | 650,000 | 573,914 | |
| PA State Econ. Dev. Fin. Auth. Rev. Bonds, (PennDOT Major Bridges), 6.00%, 6/30/61 | Baa2 | 1,000,000 | 1,118,931 | |
| Philadelphia Auth. For Ind. Dev. 144A Rev. Bonds, (String Theory Charter School), 5.00%, 6/15/50 | BB+ | 700,000 | 672,845 | |
| Philadelphia, Auth. for Indl. Dev. 144A Rev. Bonds, (U. of the Arts) | ||||
| 5.00%, 3/15/45 | BB−/F | 660,000 | 553,683 | |
| 5.00%, 3/15/45 (Prerefunded 3/15/28) | AAA/P | 40,000 | 44,326 | |
| 10,843,410 | ||||
| Puerto Rico (2.8%) | ||||
| Cmnwlth. of PR G.O. Bonds, Ser. A-1, 4.00%, 7/1/37 | BB/P | 3,000,000 | 2,628,385 | |
| Cmnwlth. of PR, G.O. Bonds, Ser. A-1, 4.00%, 7/1/46 | BB/P | 2,000,000 | 1,627,716 | |
| Cmnwlth. of PR, Sales Tax Fin. Corp. Rev. Bonds, Ser. A-1, 5.00%, 7/1/58 | BB−/P | 4,700,000 | 4,538,334 | |
| 8,794,435 | ||||
| South Carolina (4.6%) | ||||
| Berkeley Cnty., Assmt. Rev. Bonds, (Nexton Impt. Dist.), 4.375%, 11/1/49 | BB−/P | 1,000,000 | 823,517 | |
| SC State Jobs Econ. Dev. Auth. Edl. Fac. 144A Rev. Bonds | ||||
| (High Point Academy), Ser. A, 5.75%, 6/15/49 | Ba1 | 1,000,000 | 1,008,686 | |
| (High Point Academy), Ser. A, 5.75%, 6/15/39 | Ba1 | 500,000 | 508,604 | |
| (Greenville Renewable Energy Ed. Charter School), 4.00%, 6/1/56 | BB/P | 1,020,000 | 711,329 | |
| SC State Public Svc Auth. Rev. Bonds Ser. B | ||||
| 4.00%, 12/1/41 T | A2 | 4,000,000 | 3,858,395 | |
| 4.00%, 12/1/42 T | A2 | 5,250,000 | 5,014,858 | |
| 4.00%, 12/1/51 T | A2 | 3,000,000 | 2,693,360 | |
| 14,618,749 | ||||
| Tennessee (0.7%) | ||||
| Metro. Govt. Nashville & Davidson Cnty., Hlth. & Edl. Fac. Board Rev. Bonds, (Blakeford at Green Hills), Ser. A, 4.00%, 11/1/55 | BBB−/F | 1,750,000 | 1,236,798 | |
| Metro. Nashville, Arpt. Auth. Rev. Bonds, Ser. B, 5.50%, 7/1/39 | A1 | 1,000,000 | 1,120,568 | |
| 2,357,366 | ||||
| Texas (8.9%) | ||||
| Arlington, Higher Ed. Fin. Corp. Rev. Bonds | ||||
| (Uplift Ed.), Ser. A, PSFG, 4.00%, 12/1/42 | AAA | 1,000,000 | 993,563 | |
| (Wayside Schools), Ser. A, 4.00%, 8/15/41 | BB | 610,000 | 493,126 | |
| Arlington, Higher Ed. Fin. Corp. 144A Rev. Bonds, (Magellan School (The)), 6.375%, 6/1/62 | Ba2 | 1,100,000 | 1,117,718 | |
20 Managed Municipal Income Trust | |
| MUNICIPAL BONDS AND NOTES (133.4%)* cont. | Rating** | Principal amount | Value | |
| Texas cont. | ||||
| Clifton, Higher Ed. Fin. Corp. Ed. Rev. Bonds | ||||
| (Intl. Leadership), Ser. D, 6.125%, 8/15/48 | BB−/P | $2,500,000 | $2,513,184 | |
| (IDEA Pub. Schools), 5.00%, 8/15/28 | A− | 200,000 | 211,272 | |
| Dallas, Area Rapid Transit Rev. Bonds, Ser. B, 5.00%, 12/1/47 | AA+ | 9,000,000 | 9,770,630 | |
| Harris Cnty., Cultural Ed. Fac. Fin. Corp. Rev. Bonds | ||||
| (Brazos Presbyterian Homes, Inc.), 5.00%, 1/1/37 | BB+/F | 250,000 | 221,544 | |
| (YMCA of the Greater Houston Area), Ser. A, 5.00%, 6/1/33 | Ba1 | 1,000,000 | 944,637 | |
| Houston, Arpt. Syst. Rev. Bonds | ||||
| Ser. B-1, 5.00%, 7/15/35 | BB− | 2,500,000 | 2,498,450 | |
| (United Airlines, Inc.), 4.00%, 7/1/41 | B−/F | 1,250,000 | 1,084,923 | |
| Matagorda Cnty., Poll. Control Rev. Bonds, (Dist. No. 1), Ser. A, AMBAC, 4.40%, 5/1/30 | A− | 1,250,000 | 1,258,726 | |
| New Hope, Cultural Ed. Fac. Fin. Corp. Rev. Bonds | ||||
| (Wesleyan Homes, Inc.), 5.50%, 1/1/43 | BB−/P | 500,000 | 421,294 | |
| (Woman’s U.-Collegiate Hsg. Denton, LLC), Ser. A-1, AGM, 4.125%, 7/1/53 | AA | 1,000,000 | 901,624 | |
| Temple, Tax Increment 144A Tax Alloc. Bonds, (Reinvestment Zone No. 1), Ser. A, 5.00%, 8/1/38 | Baa2 | 1,500,000 | 1,518,209 | |
| TX Private Activity Surface Trans. Corp. Rev. Bonds, (Segment 3C), 5.00%, 6/30/58 | Baa2 | 2,500,000 | 2,508,904 | |
| TX State Muni. Gas Acquisition & Supply Corp. III Rev. Bonds, 5.00%, 12/15/30 | A3 | 1,000,000 | 1,052,012 | |
| TX State Private Activity Bond Surface Trans. Corp. Rev. Bonds, (Blueridge Trans. Group, LLC (SH 288 Toll Lane)), 5.00%, 12/31/50 | Baa2 | 1,250,000 | 1,250,702 | |
| TX State Trans. Comm. Rev. Bonds, (State Hwy. 249 Sys.), Ser. A, zero %, 8/1/39 | Baa3 | 700,000 | 304,462 | |
| 29,064,980 | ||||
| Utah (1.2%) | ||||
| Infrastructure Agcy. Telecomm. Rev. Bonds, 4.00%, 10/15/39 | BBB−/F | 1,500,000 | 1,301,006 | |
| MDA Mountain Village Pub. Infrastructure Dist. Special Assmt., Ser. A, 5.00%, 8/1/50 | B/P | 1,045,000 | 850,286 | |
| Mida Mountain Village Pub. Infrastructure Dist. 144A Special Assmt. Bonds, (Mountain Village Assmt. Area No. 2), 4.00%, 8/1/50 | B/P | 1,250,000 | 914,268 | |
| UT State Charter School Fin. Auth. Rev. Bonds, (Summit Academy, Inc.), Ser. A, 5.00%, 4/15/44 | AA | 625,000 | 645,133 | |
| 3,710,693 | ||||
| Virginia (3.6%) | ||||
| Cherry Hill Cmnty., Dev. Auth. 144A Special Assmt. Bonds, (Potomac Shores), 5.40%, 3/1/45 | B/P | 995,000 | 995,091 | |
| Farms of New Kent, Cmnty. Dev. Auth. 144A Special Assmt. Bonds, Ser. A, 3.75%, 3/1/36 | B+/P | 620,000 | 585,265 | |
| James City Cnty., Econ. Dev. Auth. Rev. Bonds | ||||
| (Williamsburg Landing), Ser. A, 4.00%, 12/1/50 | BB/P | 1,235,000 | 883,148 | |
| (VA United Methodist Homes, Inc. Oblig. Group), Ser. A, 4.00%, 6/1/47 | BB/P | 1,000,000 | 704,337 | |
Managed Municipal Income Trust 21 | |
| MUNICIPAL BONDS AND NOTES (133.4%)* cont. | Rating** | Principal amount | Value | |
| Virginia cont. | ||||
| Lexington, Indl. Dev. Auth. Res. Care Fac. Rev. Bonds | ||||
| (Lexington Retirement Cmnty.), 4.00%, 1/1/48 | BBB−/F | $1,310,000 | $988,593 | |
| (Lexington Retirement Cmnty.), 4.00%, 1/1/42 | BBB−/F | 1,000,000 | 805,179 | |
| (Kendal at Lexington), 4.00%, 1/1/31 | BBB−/F | 675,000 | 636,535 | |
| Lower Magnolia Green Cmnty., Dev. Auth. 144A Special Assmt. Bonds, 5.00%, 3/1/35 | B/P | 460,000 | 453,111 | |
| Small Bus. Fin. Auth. Private Activity Rev. Bonds, (Transform 66-P3), 5.00%, 12/31/52 | Baa3 | 1,000,000 | 993,808 | |
| Suffolk, Econ. Dev. Auth. Retirement Fac. Rev. Bonds, (United Church Homes & Svcs. Oblig. Group), 5.00%, 9/1/31 | BB/P | 500,000 | 472,880 | |
| VA State Small Bus. Fin. Auth. Hlth. Care Fac. Rev. Bonds, (Bon Secours Mercy Hlth., Inc.), 4.00%, 12/1/49 | A1 | 4,000,000 | 3,869,595 | |
| 11,387,542 | ||||
| Washington (2.8%) | ||||
| Bellevue, G.O. Bonds | ||||
| 4.00%, 12/1/38 | Aaa | 1,000,000 | 1,025,313 | |
| 4.00%, 12/1/34 | Aaa | 1,420,000 | 1,531,458 | |
| Kalispel Tribe of Indians Priority Dist. Rev. Bonds, Ser. A, 5.25%, 1/1/38 | BB+/P | 750,000 | 774,259 | |
| WA State Hsg. Fin. Comm. Rev. Bonds | ||||
| (Wesley Homes Lea Hill), 5.00%, 7/1/41 | B/P | 500,000 | 432,167 | |
| (Wesley Homes Lea Hill), 5.00%, 7/1/36 | B/P | 580,000 | 521,810 | |
| (Social Certif.), Ser. A-1, 3.50%, 12/20/35 | BBB+ | 2,138,754 | 2,008,921 | |
| WA State Hsg. Fin. Comm. 144A Rev. Bonds, (Presbyterian Retirement Cmnty. Northwest), Ser. A, 5.00%, 1/1/36 | BB/F | 1,175,000 | 974,439 | |
| WA State Hsg. Fin. Comm. Nonprofit 144A Rev. Bonds, (Spokane Intl. Academy), Ser. A | ||||
| 5.00%, 7/1/56 | Ba2 | 1,130,000 | 1,026,658 | |
| 5.00%, 7/1/50 | Ba2 | 500,000 | 464,255 | |
| 8,759,280 | ||||
| Wisconsin (5.2%) | ||||
| Pub. Fin. Auth. 144A Rev. Bonds | ||||
| (WFCS Holdings, LLC), 5.00%, 1/1/55 | BB−/P | 1,700,000 | 1,291,632 | |
| (Roseman U. of Hlth. Sciences), 5.00%, 4/1/40 | BB | 1,085,000 | 1,061,927 | |
| (Roseman U. of Hlth. Sciences), 5.00%, 4/1/40 (Prerefunded 4/1/30) | AAA/P | 65,000 | 75,018 | |
| Pub. Fin. Auth. Edl. Fac. Rev. Bonds, (Piedmont Cmnty. Charter School), 5.00%, 6/15/53 | Baa3 | 1,150,000 | 1,137,496 | |
| Pub. Fin. Auth. Exempt Fac. Rev. Bonds, (Celanese U.S. Holdings, LLC), Ser. C, 4.30%, 11/1/30 | Baa3 | 300,000 | 294,347 | |
| Pub. Fin. Auth. Retirement Communities Rev. Bonds, (Evergreens Oblig. Group), Ser. A, 5.00%, 11/15/49 | BBB/F | 1,750,000 | 1,612,554 | |
| Pub. Fin. Auth. Retirement Fac. 144A Rev. Bonds, (Southminster, Inc.), 5.00%, 10/1/48 | BB/F | 800,000 | 666,359 | |
| Pub. Fin. Auth. Student Hsg. Fac. 144A Rev. Bonds, (UHF RISE Student Hsg., LLC), Ser. A-1, 4.00%, 7/1/61 | Ba1 | 600,000 | 434,762 | |
22 Managed Municipal Income Trust | |
| MUNICIPAL BONDS AND NOTES (133.4%)* cont. | Rating** | Principal amount | Value | |
| Wisconsin cont. | ||||
| WI Pub. Fin. Auth. Hotel Rev. Bonds, (Grand Hyatt), 5.00%, 2/1/62 | BBB− | $2,300,000 | $2,268,620 | |
| WI Pub. Fin. Auth. Hotel 144A Rev. Bonds, (Grand Hyatt), 6.00%, 2/1/62 | BB−/P | 1,000,000 | 1,012,066 | |
| WI State Hlth. & Edl. Fac. Auth. Rev. Bonds | ||||
| (Oakwood Lutheran Sr. Ministries Oblig. Group), 4.00%, 1/1/57 | BB/P | 650,000 | 440,058 | |
| (St. John’s Communities, Inc.), 4.00%, 9/15/45 | BBB−/F | 650,000 | 505,065 | |
| (St. John’s Communities, Inc.), 4.00%, 9/15/41 | BBB−/F | 770,000 | 628,189 | |
| (Froedtert Health, Inc.), Ser. A, 4.00%, 4/1/41 | AA | 4,000,000 | 3,856,920 | |
| WI State Pub. Fin. Auth Sr. Living 144A Rev. Bonds, (Mary’s Woods at Marylhurst), Ser. A, 5.25%, 5/15/37 | BB/F | 380,000 | 362,562 | |
| WI State Pub. Fin. Auth. 144A Rev. Bonds, (Church Home of Hartford, Inc.), Ser. A, 5.00%, 9/1/30 | BB/F | 945,000 | 917,845 | |
| 16,565,420 | ||||
| Total municipal bonds and notes (cost $451,968,350) | $423,821,754 | |||
| SHORT-TERM INVESTMENTS (6.0%)* | Shares | Value | |
| Putnam Short Term Investment Fund Class P 4.98% L | 18,840,862 | $18,840,862 | |
| State Street Institutional U.S. Government Money Market Fund, Premier Class 4.76% P | 220,000 | 220,000 | |
| Total short-term investments (cost $19,060,862) | $19,060,862 | ||
| TOTAL INVESTMENTS | ||
| Total investments (cost $471,029,212) | $442,882,616 | |
| Notes to the fund’s portfolio | |||
| Unless noted otherwise, the notes to the fund’s portfolio are for the close of the fund’s reporting period, which ran from November 1, 2022 through April 30, 2023 (the reporting period). Within the following notes to the portfolio, references to “Putnam Management” represent Putnam Investment Management, LLC, the fund’s manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC and references to “ASC 820” represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures. | |||
| * | Percentages indicated are based on net assets of $317,796,040. | ||
| ** | The Moody’s, Standard & Poor’s or Fitch ratings indicated are believed to be the most recent ratings available at the close of the reporting period for the securities listed. Ratings are generally ascribed to securities at the time of issuance. While the agencies may from time to time revise such ratings, they undertake no obligation to do so, and the ratings do not necessarily represent what the agencies would ascribe to these securities at the close of the reporting period. Securities rated by Fitch are indicated by “/F.” Securities rated by Putnam are indicated by “/P.” The Putnam rating categories are comparable to the Standard & Poor’s classifications. If a security is insured, it will usually be rated by the ratings organizations based on the financial strength of the insurer. | ||
| † | This security is non-income-producing. | ||
| †† | The interest rate and date shown parenthetically represent the new interest rate to be paid and the date the fund will begin accruing interest at this rate. | ||
| ## | Forward commitment, in part or in entirety (Note 1). | ||
Managed Municipal Income Trust 23 | |
| L | Affiliated company (Note 6). The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period. | ||
| P | This security was pledged, or purchased with cash that was pledged, to the fund for collateral on certain derivative contracts. The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period. | ||
| T | Underlying security in a tender option bond transaction. This security has been segregated as collateral for financing transactions. | ||
| 144A after the name of an issuer represents securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. | |||
| On Mandatory Put Bonds, the rates shown are the current interest rates at the close of the reporting period and the dates shown represent the next mandatory put dates. Rates are set by remarketing agents and may take into consideration market supply and demand, credit quality and the current SIFMA Municipal Swap Index, 1 Month US LIBOR or 3 Month US LIBOR rates, which were 3.86%, 5.06% and 5.30%, respectively, as of the close of the reporting period. | |||
| The dates shown parenthetically on prerefunded bonds represent the next prerefunding dates. | |||
| The dates shown on debt obligations are the original maturity dates. | |||
| The fund had the following sector concentrations greater than 10% at the close of the reporting period (as a percentage of net assets): | |||
| Health care | 27.1% | ||
| Education | 21.3 | ||
| Tax bonds | 14.0 | ||
| Transportation | 12.9 | ||
| State debt | 11.0 | ||
| Local debt | 10.1 | ||
| Other | 3.6 | ||
| OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 4/30/23 (Unaudited) | |||||||
| Swap counterparty/ Notional amount |
Value | Upfront premium received (paid) |
Termination date |
Payments received (paid) by fund |
Total return received by or paid by fund |
Unrealized appreciation/ (depreciation) |
|
| Citibank, N.A. | |||||||
| $7,000,000 | $250,012 | $— | 6/8/23 | — | 2.82% minus Municipal Market Data Index AAA municipal yields 10 Year rate — At maturity | $250,012 | |
| Upfront premium received | — | Unrealized appreciation | 250,012 | ||||
| Upfront premium (paid) | — | Unrealized (depreciation) | — | ||||
| Total | $— | Total | $250,012 | ||||
24 Managed Municipal Income Trust | |
Level 1: Valuations based on quoted prices for identical securities in active markets.
Level 2: Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.
Level 3: Valuations based on inputs that are unobservable and significant to the fair value measurement.
The following is a summary of the inputs used to value the fund’s net assets as of the close of the reporting period:| Valuation inputs | |||
| Investments in securities: | Level 1 | Level 2 | Level 3 |
| Municipal bonds and notes | $— | $423,821,754 | $— |
| Short-term investments | 220,000 | 18,840,862 | — |
| Totals by level | $220,000 | $442,662,616 | $— |
| Valuation inputs | |||
| Other financial instruments: | Level 1 | Level 2 | Level 3 |
| Total return swap contracts | $— | $250,012 | $— |
| Totals by level | $— | $250,012 | $— |
The accompanying notes are an integral part of these financial statements.
Managed Municipal Income Trust 25 | |
Statement of assets and liabilities 4/30/23 (Unaudited)
| ASSETS | |
| Investment in securities, at value (Notes 1 and 9): | |
| Unaffiliated issuers (identified cost $452,188,350) | $424,041,754 |
| Affiliated issuers (identified cost $18,840,862) (Note 6) | 18,840,862 |
| Interest and other receivables | 6,118,932 |
| Receivable for investments sold | 115,000 |
| Unrealized appreciation on OTC swap contracts (Note 1) | 250,012 |
| Prepaid assets | 49,714 |
| Total assets | 449,416,274 |
| LIABILITIES | |
| Payable for investments purchased | 1,766,401 |
| Payable for purchases of delayed delivery securities (Note 1) | 3,303,050 |
| Payable for shares of the fund repurchased | 207,434 |
| Payable for compensation of Manager (Note 2) | 426,415 |
| Payable for custodian fees (Note 2) | 8,133 |
| Payable for investor servicing fees (Note 2) | 26,511 |
| Payable for Trustee compensation and expenses (Note 2) | 118,955 |
| Payable for administrative services (Note 2) | 1,757 |
| Collateral on certain derivative contracts, at value (Notes 1 and 9) | 220,000 |
| Payable for floating rate notes issued (Note 1) | 24,687,515 |
| Preferred share remarketing agent fees | 26,079 |
| Distributions payable to shareholders | 1,253,572 |
| Distributions payable to preferred shareholders (Note 1) | 89,655 |
| Other accrued expenses | 134,757 |
| Total liabilities | 32,270,234 |
| Series A remarketed preferred shares: (240 shares authorized and issued at $100,000 per | |
| share) (Note 4) | 24,000,000 |
| Series C remarketed preferred shares: (1,507 shares authorized and issued at $50,000 per | |
| share) (Note 4) | 75,350,000 |
| Net assets | $317,796,040 |
| REPRESENTED BY | |
| Paid-in capital — common shares (Unlimited shares authorized) (Notes 1 and 5) | $363,069,189 |
| Total distributable earnings (Note 1) | (45,273,149) |
| Total — Representing net assets applicable to common shares outstanding | $317,796,040 |
| COMPUTATION OF NET ASSET VALUE | |
| Net asset value per common share | |
| ($317,796,040 divided by 48,563,580 shares) | $6.54 |
The accompanying notes are an integral part of these financial statements.
| 26 Managed Municipal Income Trust |
Statement of operations Six months ended 4/30/23 (Unaudited)
| INVESTMENT INCOME | |
| Interest (including interest income of $418,050 from investments in affiliated issuers) (Note 6) | $9,708,211 |
| Total investment income | 9,708,211 |
| EXPENSES | |
| Compensation of Manager (Note 2) | 1,123,465 |
| Investor servicing fees (Note 2) | 79,247 |
| Custodian fees (Note 2) | 8,213 |
| Trustee compensation and expenses (Note 2) | 6,625 |
| Administrative services (Note 2) | 6,833 |
| Preferred share remarketing agent fees | 74,928 |
| Interest and fees expense (Note 1) | 604,017 |
| Other | 247,168 |
| Fees waived and reimbursed by Manager (Note 2) | (268,435) |
| Total expenses | 1,882,061 |
| Expense reduction (Note 2) | (4,372) |
| Net expenses | 1,877,689 |
| Net investment income | 7,830,522 |
| REALIZED AND UNREALIZED GAIN (LOSS) | |
| Net realized gain (loss) on: | |
| Securities from unaffiliated issuers (Notes 1 and 3) | (6,917,181) |
| Futures contracts (Note 1) | (40,709) |
| Swap contracts (Note 1) | 733,650 |
| Total net realized loss | (6,224,240) |
| Change in net unrealized appreciation (depreciation) on: | |
| Securities from unaffiliated issuers | 38,646,866 |
| Futures contracts | (109,972) |
| Swap contracts | 867,418 |
| Total change in net unrealized appreciation | 39,404,312 |
| Net gain on investments | 33,180,072 |
| Net increase in net assets resulting from operations | 41,010,594 |
| Distributions to Series A and C remarketed preferred shareholders (Note 1): | |
| From ordinary income | |
| Taxable net investment income | (8,043) |
| From tax exempt net investment income | (2,480,502) |
| Net increase in net assets resulting from operations (applicable to common shareholders) | $38,530,092 |
The accompanying notes are an integral part of these financial statements.
| Managed Municipal Income Trust 27 |
Statement of changes in net assets
| INCREASE (DECREASE) IN NET ASSETS | Six months ended 4/30/23* | Year ended 10/31/22 |
| Operations | ||
| Net investment income | $7,830,522 | $14,763,472 |
| Net realized loss on investments | (6,224,240) | (4,809,916) |
| Change in net unrealized appreciation (depreciation) | ||
| of investments | 39,404,312 | (100,269,484) |
| Net increase (decrease) in net assets resulting | ||
| from operations | 41,010,594 | (90,315,928) |
| Distributions to Series A and C remarketed preferred | ||
| shareholders (Note 1): | ||
| From ordinary income | ||
| Tax exempt net investment income | (2,480,502) | (1,367,745) |
| Net realized short-term gains on investments | — | (8,959) |
| From net realized long-term gains on investments | — | (1,476) |
| Net increase (decrease) in net assets resulting from | ||
| operations (applicable to common shareholders) | 38,530,092 | (91,694,108) |
| Distributions to common shareholders (note 1): | ||
| From ordinary income | ||
| Taxable net investment income | — | (877,214) |
| Net realized short-term gains on investments | — | (1,267,503) |
| From tax exempt net investment income | (8,960,159) | (13,158,154) |
| From net realized long-term gains on investments | — | (207,262) |
| From return of capital | — | (3,248,483) |
| Increase from issuance of common shares in connection | ||
| with reinvestment of distributions | 260,630 | 235,479 |
| Decrease from capital shares repurchased (Note 5) | (1,293,525) | (1,576,370) |
| Total increase (decrease) in net assets | 28,537,038 | (111,793,615) |
| NET ASSETS | ||
| Beginning of period | 289,259,002 | 401,052,617 |
| End of period | $317,796,040 | $289,259,002 |
| NUMBER OF FUND SHARES | ||
| Common shares outstanding at beginning of period | 48,738,809 | 48,944,250 |
| Shares issued in connection with reinvestment | ||
| of distributions | 39,845 | 28,389 |
| Shares repurchased (Note 5) | (215,074) | (233,830) |
| Common shares outstanding at end of period | 48,563,580 | 48,738,809 |
| Series A Remarketed preferred shares outstanding at | ||
| beginning and end of year | 240 | 240 |
| Series C Remarketed preferred shares outstanding at | ||
| beginning and end of year | 1,507 | 1,507 |
*Unaudited.
The accompanying notes are an integral part of these financial statements.
| 28 Managed Municipal Income Trust |
Statement of cash flows Six months ended 4/30/23
| CASH FLOWS FROM OPERATING ACTIVITIES | |
| Net increase in net assets from operations | $41,010,594 |
| Adjustments to reconcile net decrease in net assets from operations to net cash provided | |
| by operating activities: | |
| Purchase of investment securities | $(72,635,343) |
| Proceeds from disposition of investment securities | 73,308,891 |
| Purchase of short-term investment securities, net | 8,846,896 |
| Premium amortization | 1,462,947 |
| Accretion discount | (342,670) |
| (Increase) decrease in interest and other receivables | (103,082) |
| (Increase) decrease in receivable for investments sold | (10,000) |
| Increase (decrease) in payable for investments purchased | 4,969,627 |
| (Increase) decrease in prepaid asset | (17,604) |
| (Increase) decrease in payable to broker | (209,259) |
| Increase (decrease) in payable for compensation of Manager | (127,370) |
| Increase (decrease) in payable for custodian fees | 5,472 |
| Increase (decrease) in payable for investor servicing | 1,025 |
| Increase (decrease) in payable for Trustee compensation and expenses | (18,982) |
| Increase (decrease) in payable for administrative services | 1,129 |
| Increase (decrease) in payable for preferred share remarketing fees | 5,381 |
| Increase (decrease) in payable for other accrued expenses | 34,403 |
| Net realized (gain) loss on investments | 6,917,181 |
| Net unrealized (appreciation) depreciation on OTC swap contracts during the year | (867,418) |
| Net unrealized (appreciation) depreciation on investments during the year | (38,646,866) |
| Net cash provided by operating activities | (17,425,642) |
| CASH FLOWS FROM FINANCING ACTIVITIES | |
| Increase from dividends reinvested | 260,630 |
| Decrease from repurchase of capital shares | (1,032,895) |
| Distribution to common shareholders | (9,360,791) |
| Distribution to preferred shareholders | (2,501,132) |
| Decrease from tender option bond transactions | (10,950,764) |
| Net cash used in financing activities | (23,584,952) |
| Net increase in cash | — |
| Cash balance, beginning of year | — |
| Cash balance, end of year | — |
| Supplemental disclosure of cash flow information | |
| Interest expense during the period | $504,325 |
The accompanying notes are an integral part of these financial statements.
| Managed Municipal Income Trust 29 |
Financial highlights
(For a common share outstanding throughout the period)
| PER-SHARE OPERATING PERFORMANCE | ||||||
| Six | ||||||
| months | ||||||
| ended** | Year ended | |||||
| 4/30/23 | 10/31/22 | 10/31/21 | 10/31/20 | 10/31/19 | 10/31/18 | |
| Net asset value, beginning of period | ||||||
| (common shares) | $5.94 | $8.19 | $7.91 | $8.15 | $7.64 | $7.95 |
| Investment operations: | ||||||
| Net investment incomea | .16 | .30 | .31 | .33 | .38 | .40 |
| Net realized and unrealized | ||||||
| gain (loss) on investments | .67 | (2.13) | .35 | (.17) | .54 | (.35) |
| Total from investment operations | .83 | (1.83) | .66 | .16 | .92 | .05 |
| Distributions to preferred shareholders: | ||||||
| From net investment income | (.05) | (.03) | —e | (.02) | (.04) | (.04) |
| From capital gains | — | —e | — | (.01) | (.01) | — |
| Total from investment operations | ||||||
| (applicable to common shareholders) | .78 | (1.86) | .66 | .13 | .87 | .01 |
| Distributions to common shareholders: | ||||||
| From net investment income | (.18) | (.29) | (.32) | (.33) | (.31) | (.37) |
| From capital gains | — | (.03) | (.06) | (.05) | (.07) | — |
| From return of capital | — | (.07) | — | — | — | — |
| Total distributions | (.18) | (.39) | (.38) | (.38) | (.38) | (.37) |
| Increase from shares repurchased | — | —e | — | .01 | .02 | .05 |
| Net asset value, end of period | ||||||
| (common shares) | $6.54 | $5.94 | $8.19 | $7.91 | $8.15 | $7.64 |
| Market price, end of period | ||||||
| (common shares) | $6.05 | $5.75 | $8.25 | $7.64 | $7.97 | $6.71 |
| Total return at market price (%) | ||||||
| (common shares)b | 8.27* | (26.35) | 13.11 | 0.77 | 24.89 | (4.91) |
| Total return at net asset value (%) | ||||||
| (common shares)b | 13.26* | (23.46) | 8.44 | 1.93 | 11.91 | 0.71 |
| RATIOS AND SUPPLEMENTAL DATA | ||||||
| Net assets, end of period | ||||||
| (common shares) (in thousands) | $317,796 | $289,259 | $401,053 | $386,602 | $401,242 | $385,024 |
| Ratio of expenses to average | ||||||
| net assets (including interest | ||||||
| expense) (%)c,d,f | .59*g | 1.09g | .93 | .98g | 1.01 | 1.03 |
| Ratio of net investment income | ||||||
| to average net assets (%)c | 1.69* | 3.75 | 3.73 | 3.92 | 4.21 | 4.54 |
| Portfolio turnover (%) | 17* | 24 | 21 | 38 | 36 | 28 |
(Continued on next page)
| 30 Managed Municipal Income Trust |
Financial highlights cont.
* Not annualized.
** Unaudited.
a Per share net investment income has been determined on the basis of the weighted average number of shares outstanding during the period
b Total return assumes dividend reinvestment.
c Ratios reflect net assets available to common shares only; net investment income ratio also reflects reduction for dividend payments to preferred shareholders.
d Includes amounts paid through expense offset arrangements, if any (Note 2).
e Amount represents less than $0.01 per share.
f Includes interest and fee expense associated with borrowings which amounted to:
| Percentage of average net assets | |
| April 30, 2023 | 0.19% |
| October 31, 2022 | 0.18 |
| October 31, 2021 | 0.05 |
| October 31, 2020 | 0.09 |
| October 31, 2019 | 0.14 |
| October 31, 2018 | 0.17 |
g Reflects waiver of certain fund expenses in connection with the fund’s remarketing preferred shares during the period. As a result of such waiver, the expenses of the fund for the period ended amounted to (Note 2):
| Percentage of average net assets | |
| April 30, 2023 | 0.08% |
| October 31, 2022 | 0.01 |
| October 31, 2020 | >0.01 |
The accompanying notes are an integral part of these financial statements.
| Managed Municipal Income Trust 31 |
Notes to financial statements 4/30/23 (Unaudited)
Within the following Notes to financial statements, references to “State Street” represent State Street Bank and Trust Company, references to “the SEC” represent the Securities and Exchange Commission, references to “Putnam Management” represent Putnam Investment Management, LLC, the fund’s manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC. Additionally, references to “OTC”, if any, represent over-the-counter and references to “ESG”, if any, represent environmental, social and governance. Unless otherwise noted, the “reporting period” represents the period from November 1, 2022 through April 30, 2023.
Putnam Managed Municipal Income Trust (the fund) is a Massachusetts business trust, which is registered under the Investment Company Act of 1940, as amended, as a diversified closed-end management investment company. The goal of the fund is to seek a high level of current income exempt from federal income tax. The fund intends to achieve its goal by investing in a diversified portfolio of tax-exempt municipal securities which Putnam Management believes does not involve undue risk to income or principal. Up to 60% of the fund’s assets may consist of high-yield tax-exempt municipal securities that are below investment grade and involve special risk considerations. The fund also uses leverage, primarily by issuing preferred shares in an effort to enhance the returns for the common shareholders. The fund’s shares trade on a stock exchange at market prices, which may be lower than the fund’s net asset value.
In the normal course of business, the fund enters into contracts that may include agreements to indemnify another party under given circumstances. The fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be, but have not yet been, made against the fund. However, the fund’s management team expects the risk of material loss to be remote.
The fund has entered into contractual arrangements with an investment adviser, administrator, transfer agent and custodian, who each provide services to the fund. Unless expressly stated otherwise, shareholders are not parties to, or intended beneficiaries of these contractual arrangements, and these contractual arrangements are not intended to create any shareholder right to enforce them against the service providers or to seek any remedy under them against the service providers, either directly or on behalf of the fund.
Under the fund’s Amended and Restated Agreement and Declaration of Trust, any claims asserted against or on behalf of the Putnam Funds, including claims against Trustees and Officers, must be brought in state and federal courts located within the Commonwealth of Massachusetts.
Note 1: Significant accounting policies
The following is a summary of significant accounting policies consistently followed by the fund in the preparation of its financial statements. The preparation of financial statements is in conformity with accounting principles generally accepted in the United States of America and requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations. Actual results could differ from those estimates. Subsequent events after the Statement of assets and liabilities date through the date that the financial statements were issued have been evaluated in the preparation of the financial statements.
Security valuation Portfolio securities and other investments are valued using policies and procedures adopted by the Board of Trustees. The Trustees have formed a Pricing Committee to oversee the implementation of these procedures and have delegated responsibility for valuing the fund’s assets in accordance with these procedures to Putnam Management. Putnam Management has established an internal Valuation Committee that is responsible for making fair value determinations, evaluating the effectiveness of the pricing policies of the fund and reporting to the Pricing Committee.
Tax-exempt bonds and notes are generally valued on the basis of valuations provided by an independent pricing service approved by the Trustees. Such services use information with respect to transactions in bonds, quotations from bond dealers, market transactions in comparable securities and various relationships between securities in determining value. These securities will generally be categorized as Level 2.
Market quotations are not considered to be readily available for certain debt obligations (including short-term investments with remaining maturities of 60 days or less) and other investments; such investments are valued on the basis of valuations furnished by an independent pricing service approved by the Trustees or dealers selected by Putnam Management. Such services or dealers determine valuations for normal institutional-size trading units of such securities using methods based on market transactions for comparable securities and various relationships, generally recognized by institutional traders, between securities (which consider such factors as
| 32 Managed Municipal Income Trust |
security prices, yields, maturities and ratings). These securities will generally be categorized as Level 2. Securities quoted in foreign currencies, if any, are translated into U.S. dollars at the current exchange rate.
Investments in open-end investment companies (excluding exchange-traded funds), if any, which can be classified as Level 1 or Level 2 securities, are valued based on their net asset value. The net asset value of such investment companies equals the total value of their assets less their liabilities and divided by the number of their outstanding shares.
To the extent a pricing service or dealer is unable to value a security or provides a valuation that Putnam Management does not believe accurately reflects the security’s fair value, the security will be valued at fair value by Putnam Management in accordance with policies and procedures approved by the Trustees. Certain investments, including certain restricted and illiquid securities and derivatives, are also valued at fair value following procedures approved by the Trustees. These valuations consider such factors as significant market or specific security events such as interest rate or credit quality changes, various relationships with other securities, discount rates, U.S. Treasury, U.S. swap and credit yields, index levels, convexity exposures, recovery rates, sales and other multiples and resale restrictions. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs.
To assess the continuing appropriateness of fair valuations, the Valuation Committee reviews and affirms the reasonableness of such valuations on a regular basis after considering all relevant information that is reasonably available. 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 in a current sale and does not reflect an actual market price, which may be different by a material amount.
Security transactions and related investment income Security transactions are recorded on the trade date (the date the order to buy or sell is executed). Gains or losses on securities sold are determined on the identified cost basis.
Interest income, net of any applicable withholding taxes, if any, is recorded on the accrual basis. Amortization and accretion of premiums and discounts on debt securities, if any, is recorded on the accrual basis.
Securities purchased or sold on a forward commitment or delayed delivery basis may be settled at a future date beyond customary settlement time; interest income is accrued based on the terms of the securities. Losses may arise due to changes in the fair value of the underlying securities or if the counterparty does not perform under the contract.
Futures contracts The fund uses futures contracts for hedging treasury term structure risk and for yield curve positioning.
The potential risk to the fund is that the change in value of futures contracts may not correspond to the change in value of the hedged instruments. In addition, losses may arise from changes in the value of the underlying instruments, if there is an illiquid secondary market for the contracts, if interest or exchange rates move unexpectedly or if the counterparty to the contract is unable to perform. With futures, there is minimal counterparty credit risk to the fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. Risks may exceed amounts recognized on the Statement of assets and liabilities. When the contract is closed, the fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.
Futures contracts are valued at the quoted daily settlement prices established by the exchange on which they trade. The fund and the broker agree to exchange an amount of cash equal to the daily fluctuation in the value of the futures contract. Such receipts or payments are known as “variation margin.”
Futures contracts outstanding at period end, if any, are listed after the fund’s portfolio.
Total return swap contracts The fund entered into OTC and/or centrally cleared total return swap contracts, which are arrangements to exchange a market-linked return for a periodic payment, both based on a notional principal amount, for hedging and gaining exposure to interest rate and term structure risk.
To the extent that the total return of the security, index or other financial measure underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the fund will receive a payment from or make a payment to the counterparty. OTC and/or centrally cleared total return swap contracts are marked to market daily based upon quotations from an independent pricing service or market maker. Any change is recorded as an
| Managed Municipal Income Trust 33 |
unrealized gain or loss on OTC total return swaps. Daily fluctuations in the value of centrally cleared total return swaps are settled through a central clearing agent and are recorded in variation margin on the Statement of assets and liabilities and recorded as unrealized gain or loss. Payments received or made are recorded as realized gains or losses. Certain OTC and/or centrally cleared total return swap contracts may include extended effective dates. Payments related to these swap contracts are accrued based on the terms of the contract. The fund could be exposed to credit or market risk due to unfavorable changes in the fluctuation of interest rates or in the price of the underlying security or index, the possibility that there is no liquid market for these agreements or that the counterparty may default on its obligation to perform. The fund’s maximum risk of loss from counterparty risk or central clearing risk is the fair value of the contract. This risk may be mitigated for OTC total return swap contracts by having a master netting arrangement between the fund and the counterparty and for centrally cleared total return swap contracts through the daily exchange of variation margin. There is minimal counterparty risk with respect to centrally cleared total return swap contracts due to the clearinghouse guarantee fund and other resources that are available in the event of a clearing member default. Risk of loss may exceed amounts recognized on the Statement of assets and liabilities.
OTC and/or centrally cleared total return swap contracts outstanding, including their respective notional amounts at period end, if any, are listed after the fund’s portfolio.
Master agreements The fund is a party to ISDA (International Swaps and Derivatives Association, Inc.) Master Agreements (Master Agreements) with certain counterparties that govern OTC derivative and foreign exchange contracts entered into from time to time. The Master Agreements may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. With respect to certain counterparties, in accordance with the terms of the Master Agreements, collateral pledged to the fund is held in a segregated account by the fund’s custodian and, with respect to those amounts which can be sold or repledged, is presented in the fund’s portfolio.
Collateral pledged by the fund is segregated by the fund’s custodian and identified in the fund’s portfolio. Collateral can be in the form of cash or debt securities issued by the U.S. Government or related agencies or other securities as agreed to by the fund and the applicable counterparty. Collateral requirements are determined based on the fund’s net position with each counterparty.
Termination events applicable to the fund may occur upon a decline in the fund’s net assets below a specified threshold over a certain period of time. Termination events applicable to counterparties may occur upon a decline in the counterparty’s long-term and short-term credit ratings below a specified level. In each case, upon occurrence, the other party may elect to terminate early and cause settlement of all derivative and foreign exchange contracts outstanding, including the payment of any losses and costs resulting from such early termination, as reasonably determined by the terminating party. Any decision by one or more of the fund’s counterparties to elect early termination could impact the fund’s future derivative activity.
At the close of the reporting period, the fund did not have a net liability position on open derivative contracts subject to the Master Agreements.
Tender option bond transactions The fund may participate in transactions whereby a fixed-rate bond is transferred to a tender option bond trust (TOB trust) sponsored by a broker. The TOB trust funds the purchase of the fixed rate bonds by issuing floating-rate bonds to third parties and allowing the fund to retain the residual interest in the TOB trust’s assets and cash flows, which are in the form of inverse floating rate bonds. The inverse floating rate bonds held by the fund give the fund the right to (1) cause the holders of the floating rate bonds to tender their notes at par, and (2) to have the fixed-rate bond held by the TOB trust transferred to the fund, causing the TOB trust to collapse. The fund accounts for the transfer of the fixed-rate bond to the TOB trust as a secured borrowing by including the fixed-rate bond in the fund’s portfolio and including the floating rate bond as a liability in the Statement of assets and liabilities. At the close of the reporting period, the fund’s investments with a value of $40,846,268 were held by the TOB trust and served as collateral for $24,687,515 in floating-rate bonds outstanding. For the reporting period ended, the fund incurred interest expense of $504,325 for these investments based on an average interest rate of 3.16%.
| 34 Managed Municipal Income Trust |
Federal taxes It is the policy of the fund to distribute all of its income within the prescribed time period and otherwise comply with the provisions of the Internal Revenue Code of 1986, as amended (the Code), applicable to regulated investment companies. It is also the intention of the fund to distribute an amount sufficient to avoid imposition of any excise tax under Section 4982 of the Code.
The fund is subject to the provisions of Accounting Standards Codification 740 Income Taxes (ASC 740). ASC 740 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The fund did not have a liability to record for any unrecognized tax benefits in the accompanying financial statements. No provision has been made for federal taxes on income, capital gains or unrealized appreciation on securities held nor for excise tax on income and capital gains. Each of the fund’s federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service.
Under the Regulated Investment Company Modernization Act of 2010, the fund will be permitted to carry forward capital losses incurred for an unlimited period and the carry forwards will retain their character as either short-term or long-term capital losses. At October 31, 2022, the fund had the following capital loss carryovers available, to the extent allowed by the Code, to offset future net capital gain, if any:
| Loss carryover | ||
| Short-term | Long-term | Total |
| $5,546,407 | $320,256 | $5,866,663 |
Tax cost of investments includes adjustments to net unrealized appreciation (depreciation) which may not necessarily be final tax cost basis adjustments, but closely approximate the tax basis unrealized gains and losses that may be realized and distributed to shareholders. The aggregate identified cost on a tax basis is $470,940,246, resulting in gross unrealized appreciation and depreciation of $18,364,950 and $46,172,568, respectively, or net unrealized depreciation of $27,807,618.
Distributions to shareholders Distributions to common and preferred shareholders from net investment income are recorded by the fund on the ex-dividend date. Distributions from capital gains, if any, are recorded on the ex-dividend date and paid at least annually. The fund pays targeted distribution rates to its common shareholders. Distributions are sourced first from tax-exempt and ordinary income. The balance of the distributions, if any, comes next from capital gain and then will constitute a return of capital. A return of capital is not taxable; rather it reduces a shareholder’s tax basis in their shares of the fund. The fund may make return of capital distributions to achieve the targeted distribution rates. Dividends on remarketed preferred shares become payable when, as and if declared by the Trustees. Each dividend period for the remarketed preferred Series A shares is generally a 28 day period, and generally a 7 day period for Series C. The applicable dividend rate for the remarketed preferred shares on April 30, 2023 was 5.49% for Series A and 5.49% for Series C shares.
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Dividend sources are estimated at the time of declaration. Actual results may vary. Any non-taxable return of capital cannot be determined until final tax calculations are completed after the end of the fund’s fiscal year. Reclassifications are made to the fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryovers) under income tax regulations.
During the reporting period, the fund has experienced unsuccessful remarketings of its remarketed preferred shares. As a result, dividends to the remarketed preferred shares have been paid at the “maximum dividend rate,” pursuant to the fund’s by-laws, which, based on the current credit quality of the remarketed preferred shares, equals 110% of the 60-day “AA” composite commercial paper rate.
Determination of net asset value Net asset value of the common shares is determined by dividing the value of all assets of the fund, less all liabilities and the liquidation preference (redemption value of preferred shares, plus accumulated and unpaid dividends) of any outstanding remarketed preferred shares, by the total number of common shares outstanding as of period end.
| Managed Municipal Income Trust 35 |
Note 2: Management fee, administrative services and other transactions
The fund pays Putnam Management for management and investment advisory services quarterly based on the average net assets of the fund, including assets attributable to preferred shares. Such fee is based on the following annual rates based on the average weekly net assets attributable to common and preferred shares.
The lesser of (i) 0.550% of average net assets attributable to common and preferred shares outstanding, or (ii) the following rates:
| of the first $500 million of average | of the next $5 billion of average weekly | |||
| 0.650% | weekly net assets, | 0.425% | net assets, | |
| of the next $500 million of average | of the next $5 billion of average weekly | |||
| 0.550% | weekly net assets, | 0.405% | net assets, | |
| of the next $500 million of average | of the next $5 billion of average weekly | |||
| 0.500% | weekly net assets, | 0.390% | net assets and | |
| of the next $5 billion of average weekly | 0.380% | of any excess thereafter. | ||
| 0.450% | net assets, |
For the reporting period, the management fee represented an effective rate (excluding the impact from any expense waivers in effect) of 0.272% of the fund’s average net assets attributable to common and preferred shares outstanding.
If dividends payable on remarketed preferred shares during any dividend payment period plus any expenses attributable to remarketed preferred shares for that period exceed the fund’s gross income attributable to the proceeds of the remarketed preferred shares during that period, then the fee payable to Putnam Management for that period will be reduced by the amount of the excess (but not more than the effective management fees rate under the contract multiplied by the liquidation preference of the remarketed preferred shares outstanding during the period). For the reporting period, Putnam Management reimbursed $268,435 to the fund. Any amount in excess of the fee payable to Putnam Management for a given period will be used to reduce any subsequent fee payable to Putnam Management, as may be necessary. As of April 30, 2023, this excess amounted to $441,514.
Putnam Investments Limited (PIL), an affiliate of Putnam Management, is authorized by the Trustees to manage a separate portion of the assets of the fund as determined by Putnam Management from time to time. PIL did not manage any portion of the assets of the fund during the reporting period. If Putnam Management were to engage the services of PIL, Putnam Management would pay a quarterly sub-management fee to PIL for its services at an annual rate of 0.20% of the average net assets of the portion of the fund managed by PIL.
The fund reimburses Putnam Management an allocated amount for the compensation and related expenses of certain officers of the fund and their staff who provide administrative services to the fund. The aggregate amount of all such reimbursements is determined annually by the Trustees.
Custodial functions for the fund’s assets are provided by State Street. Custody fees are based on the fund’s asset level, the number of its security holdings and transaction volumes.
Putnam Investor Services, Inc., an affiliate of Putnam Management, provides investor servicing agent functions to the fund. Putnam Investor Services, Inc. was paid a monthly fee for investor servicing at an annual rate of 0.05% of the fund’s average daily net assets. The amounts incurred for investor servicing agent functions during the reporting period are included in Investor servicing fees in the Statement of operations.
The fund has entered into expense offset arrangements with Putnam Investor Services, Inc. and State Street whereby Putnam Investor Services, Inc.’s and State Street’s fees are reduced by credits allowed on cash balances. For the reporting period, the fund’s expenses were reduced by $4,372 under the expense offset arrangements.
Each Independent Trustee of the fund receives an annual Trustee fee, of which $281, as a quarterly retainer, has been allocated to the fund, and an additional fee for each Trustees meeting attended. Trustees also are reimbursed for expenses they incur relating to their services as Trustees.
The fund has adopted a Trustee Fee Deferral Plan (the Deferral Plan) which allows the Trustees to defer the receipt of all or a portion of Trustees fees payable on or after July 1, 1995. The deferred fees remain invested in certain Putnam funds until distribution in accordance with the Deferral Plan.
The fund has adopted an unfunded noncontributory defined benefit pension plan (the Pension Plan) covering all Trustees of the fund who have served as a Trustee for at least five years and were first elected prior to 2004. Benefits under the Pension Plan are equal to 50% of the Trustee’s average annual attendance and retainer fees for
| 36 Managed Municipal Income Trust |
the three years ended December 31, 2005. The retirement benefit is payable during a Trustee’s lifetime, beginning the year following retirement, for the number of years of service through December 31, 2006. Pension expense for the fund is included in Trustee compensation and expenses in the Statement of operations. Accrued pension liability is included in Payable for Trustee compensation and expenses in the Statement of assets and liabilities. The Trustees have terminated the Pension Plan with respect to any Trustee first elected after 2003.
Note 3: Purchases and sales of securities
During the reporting period, the cost of purchases and the proceeds from sales, excluding short-term investments, were as follows:
| Cost of purchases | Proceeds from sales | |
| Investments in securities (Long-term) | $72,635,343 | $73,308,891 |
| U.S. government securities (Long-term) | — | — |
| Total | $72,635,343 | $73,308,891 |
The fund may purchase or sell investments from or to other Putnam funds in the ordinary course of business, which can reduce the fund’s transaction costs, at prices determined in accordance with SEC requirements and policies approved by the Trustees. During the reporting period, purchases or sales of long-term securities from or to other Putnam funds, if any, did not represent more than 5% of the fund’s total cost of purchases and/or total proceeds from sales.
Note 4: Preferred shares
The Series A (240) and C (1,507) Remarketed Preferred shares are redeemable at the option of the fund on any dividend payment date at a redemption price of $100,000 per Series A Remarketed Preferred share and $50,000 per Series C Remarketed Preferred share, plus an amount equal to any dividends accumulated on a daily basis but unpaid through the redemption date (whether or not such dividends have been declared) and, in certain circumstances, a call premium.
It is anticipated that dividends paid to holders of remarketed preferred shares will be considered tax-exempt dividends under the Internal Revenue Code of 1986. To the extent that the fund earns taxable income and capital gains by the conclusion of a fiscal year, it may be required to apportion to the holders of the remarketed preferred shares throughout that year additional dividends as necessary to result in an after-tax equivalent to the applicable dividend rate for the period.
Under the Investment Company Act of 1940, the fund is required to maintain asset coverage of at least 200% with respect to the remarketed preferred shares. Additionally, the fund’s bylaws impose more stringent asset coverage requirements and restrictions relating to the rating of the remarketed preferred shares by the shares’ rating agencies. Should these requirements not be met, or should dividends accrued on the remarketed preferred shares not be paid, the fund may be restricted in its ability to declare dividends to common shareholders or may be required to redeem certain of the remarketed preferred shares. At April 30, 2023, no such restrictions have been placed on the fund.
Note 5: Shares repurchased
In September 2022, the Trustees approved the renewal of the repurchase program to allow the fund to repurchase up to 10% of its outstanding common shares over the 365 day period ending September 30, 2023 (based on shares outstanding as of September 30, 2022). Prior to this renewal, the Trustees had approved a repurchase program to allow the fund to repurchase up to 10% of its outstanding common shares over the 365 day period ending September 30, 2022 (based on shares outstanding as of September 30, 2021). Repurchases are made when the fund’s shares are trading at less than net asset value and in accordance with procedures approved by the fund’s Trustees.
For the reporting period, the fund repurchased 215,074 common shares for an aggregate purchase price of $1,293,525, which reflects a weighted-average discount from net asset value per share of 8.03%. The weighted-average discount reflects the payment of commissions by the fund to execute repurchase trades.
For the previous fiscal year, the fund repurchased 233,830 common shares for an aggregate purchase price of $1,576,370 which reflects a weighted-average discount from net asset value per share of 6.72%. The weighted-average discount reflects the payment of commissions by the fund to execute repurchase trades.
| Managed Municipal Income Trust 37 |
At the close of the reporting period, Putnam Investments, LLC owned approximately 2,069 shares of the fund (0.028% of the fund’s shares outstanding), valued at $13,531 based on net asset value.
Note 6: Affiliated transactions
Transactions during the reporting period with any company which is under common ownership or control were as follows:
| Shares | |||||
| outstanding | |||||
| and fair | |||||
| Fair value as | Purchase | Sale | Investment | value as | |
| Name of affiliate | of 10/31/22 | cost | proceeds | income | of 4/30/23 |
| Short-term investments | |||||
| Putnam Short Term | |||||
| Investment Fund* | $26,377,910 | $40,736,619 | $48,273,667 | $418,050 | $18,840,862 |
| Total Short-term | |||||
| investments | $26,377,910 | $40,736,619 | $48,273,667 | $418,050 | $18,840,862 |
* Management fees charged to Putnam Short Term Investment Fund have been waived by Putnam Management. There were no realized or unrealized gains or losses during the period.
Note 7: Market, credit and other risks
In the normal course of business, the fund trades financial instruments and enters into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the contracting party to the transaction to perform (credit risk). The fund may be exposed to additional credit risk that an institution or other entity with which the fund has unsettled or open transactions will default. The fund may invest in higher-yielding, lower-rated bonds that may have a higher rate of default.
On July 27, 2017, the United Kingdom’s Financial Conduct Authority (“FCA”), which regulates LIBOR, announced its intention to cease compelling banks to provide the quotations needed to sustain LIBOR after 2021. ICE Benchmark Administration, the administrator of LIBOR, ceased publication of most LIBOR settings on a representative basis at the end of 2021 and is expected to cease publication of a majority of U.S. dollar LIBOR settings on a representative basis after June 30, 2023. In addition, global regulators have announced that, with limited exceptions, no new LIBOR-based contracts should be entered into after 2021. LIBOR has historically been a common benchmark interest rate index used to make adjustments to variable-rate loans. It is used throughout global banking and financial industries to determine interest rates for a variety of financial instruments and borrowing arrangements. Actions by regulators have resulted in the establishment of alternative reference rates to LIBOR in most major currencies. Various financial industry groups have been planning for the transition away from LIBOR, but there are obstacles to converting certain longer-term securities and transactions to new reference rates. Markets are developing slowly and questions around liquidity in these rates and how to appropriately adjust these rates to mitigate any economic value transfer at the time of transition remain a significant concern. Neither the effect of the transition process nor its ultimate success can yet be known. The transition process might lead to increased volatility and illiquidity in markets that rely on LIBOR to determine interest rates. It could also lead to a reduction in the value of some LIBOR-based investments and reduce the effectiveness of related transactions, such as hedges. While some LIBOR-based instruments may contemplate a scenario where LIBOR is no longer available by providing for an alternative rate-setting methodology, not all may have such provisions and there may be significant uncertainty regarding the effectiveness of any such alternative methodologies. Since the usefulness of LIBOR as a benchmark could deteriorate during the transition period, these effects could occur at any time.
| 38 Managed Municipal Income Trust |
Note 8: Summary of derivative activity
The volume of activity for the reporting period for any derivative type that was held during the period is listed below and was based on an average of the holdings at the end of each fiscal quarter:
| Futures contracts (number of contracts) | 80 |
| OTC total return swap contracts (notional) | $8,500,000 |
The following is a summary of the fair value of derivative instruments as of the close of the reporting period:
| Fair value of derivative instruments as of the close of the reporting period | ||||
| ASSET DERIVATIVES | LIABILITY DERIVATIVES | |||
| Derivatives not | ||||
| accounted for as | Statement of | Statement of | ||
| hedging instruments | assets and | assets and | ||
| under ASC 815 | liabilities location | Fair value | liabilities location | Fair value |
| Interest rate contracts | Receivables | $250,012 | Payables | $— |
| Total | $250,012 | $— | ||
The following is a summary of realized and change in unrealized gains or losses of derivative instruments in the Statement of operations for the reporting period (Note 1):
| Amount of realized gain or (loss) on derivatives recognized in net gain or (loss) on investments | |||
| Derivatives not accounted for as hedging | |||
| instruments under ASC 815 | Futures | Swaps | Total |
| Interest rate contracts | $(40,709) | $733,650 | $692,941 |
| Total | $(40,709) | $733,650 | $692,941 |
| Change in unrealized appreciation or (depreciation) on derivatives recognized in net gain or (loss) | |||
| on investments | |||
| Derivatives not accounted for as hedging | |||
| instruments under ASC 815 | Futures | Swaps | Total |
| Interest rate contracts | $(109,972) | $867,418 | $757,446 |
| Total | $(109,972) | $867,418 | $757,446 |
| Managed Municipal Income Trust 39 |
Note 9: Offsetting of financial and derivative assets and liabilities
The following table summarizes any derivatives, repurchase agreements and reverse repurchase agreements, at the end of the reporting period, that are subject to an enforceable master netting agreement or similar agreement. For securities lending transactions or borrowing transactions associated with securities sold short, if any, see Note 1. For financial reporting purposes, the fund does not offset financial assets and financial liabilities that are subject to the master netting agreements in the Statement of assets and liabilities.
| Citibank, N.A. | Total | |
| Assets: | ||
| OTC Total return swap contracts*# | $250,012 | $250,012 |
| Total Assets | $250,012 | $250,012 |
| Liabilities: | ||
| OTC Total return swap contracts*# | — | — |
| Total Liabilities | $— | $— |
| Total Financial and Derivative Net Assets | $250,012 | $250,012 |
| Total collateral received (pledged)†## | $220,000 | |
| Net amount | $30,012 | |
| Controlled collateral received (including | ||
| TBA commitments)** | $220,000 | $220,000 |
| Uncontrolled collateral received | $— | $— |
| Collateral (pledged) (including TBA commitments)** | $— | $— |
* Excludes premiums, if any. Included in unrealized appreciation and depreciation on OTC swap contracts on the Statement of assets and liabilities.
** Included with Investments in securities on the Statement of assets and liabilities.
† Additional collateral may be required from certain brokers based on individual agreements.
# Covered by master netting agreement (Note 1).
##Any over-collateralization of total financial and derivative net assets is not shown. Collateral may include amounts related to unsettled agreements.
Note 10: Additional Information
On February 23, 2023, the fund’s Trustees voted to exempt, including on a going forward basis, all prior and, until further notice, new purchases of shares of the fund that might otherwise be deemed “Control Share Acquisitions” under Article 16 of the fund’s Amended and Restated Bylaws from the provisions of Article 16 of the fund’s Amended and Restated Bylaws.
| 40 Managed Municipal Income Trust |
Note 11: Subsequent event
On May 31, 2023, Franklin Resources, Inc. (“Franklin Resources”) and Great-West Lifeco Inc., the parent company of Putnam U.S. Holdings I, LLC (“Putnam Holdings”), announced that they have entered into a definitive agreement for a subsidiary of Franklin Resources to acquire Putnam Holdings in a stock and cash transaction.
As part of this transaction, Putnam Management, a wholly owned subsidiary of Putnam Holdings and investment manager to the Putnam family of funds (the “Putnam Funds”), would become an indirect wholly owned subsidiary of Franklin Resources.
The transaction is subject to customary closing conditions, including receipt of applicable regulatory approvals. Subject to such approvals and the satisfaction of these conditions, the transaction is currently expected to be consummated in the fourth quarter of 2023.
Under the Investment Company Act of 1940, as amended, consummation of the transaction will result in the automatic termination of the investment management contract between each Putnam Fund and Putnam Management and any related sub-management and sub-advisory contracts, where applicable. Therefore, the Board of Trustees of the Putnam Funds will be asked to approve a new investment management contract between each Putnam Fund and Putnam Management (and new sub-management and sub-advisory contracts, if applicable). If approved by the Board of Trustees, the new investment management contract will be presented to the shareholders of each Putnam Fund for their approval.
Shareholder meeting results (Unaudited)
April 21, 2023 annual meeting
At the meeting, a proposal to fix the number of Trustees at 11 was approved as follows:
| Votes for | Votes against | Abstentions |
| 33,691,586 | 1,873,634 | 627,879 |
At the meeting, each of the nominees for Trustees was elected as follows:
| Votes for | Votes withheld | |
| Liaquat Ahamed | 33,288,281 | 2,904,826 |
| Barbara M. Baumann | 33,613,289 | 2,579,817 |
| Catharine Bond Hill | 33,570,320 | 2,622,787 |
| Kenneth R. Leibler | 33,613,780 | 2,579,326 |
| Jennifer Williams Murphy | 33,661,161 | 2,531,945 |
| Marie Pillai | 33,696,621 | 2,496,486 |
| Robert L. Reynolds | 33,814,197 | 2,378,909 |
| Manoj P. Singh | 33,489,540 | 2,703,567 |
| Mona K. Sutphen | 33,661,772 | 2,531,335 |
A quorum was not present with respect to the matter of electing two Trustees to be voted on by the preferred shareholders voting as a separate class. As a result, in accordance with the fund’s Declaration of Trust and Bylaws, independent Trustees Katinka Domotorffy and George Putnam III remain in office and continue to serve as Trustees All tabulations are rounded to the nearest whole number.
| Managed Municipal Income Trust 41 |
Putnam family of funds
The following is a list of Putnam’s open-end mutual funds offered to the public. Investors should carefully consider the investment objective, risks, charges, and expenses of a fund before investing. For a prospectus, or a summary prospectus if available, containing this and other information for any Putnam fund or product, contact your financial advisor or call Putnam Investor Services at 1-800-225-1581. Please read the prospectus carefully before investing.
| Blend | Income |
| Core Equity Fund | Convertible Securities Fund |
| Emerging Markets Equity Fund | Core Bond Fund |
| Focused Equity Fund | Diversified Income Trust |
| Focused International Equity Fund | Floating Rate Income Fund |
| International Capital Opportunities Fund | Global Income Trust |
| International Equity Fund | Government Money Market Fund* |
| Research Fund | High Yield Fund |
| Income Fund | |
| Global Sector | Money Market Fund† |
| Global Health Care Fund | Mortgage Opportunities Fund |
| Global Technology Fund | Mortgage Securities Fund |
| Short Duration Bond Fund | |
| Growth | Ultra Short Duration Income Fund |
| Large Cap Growth Fund | |
| Small Cap Growth Fund | Tax-free Income |
| Sustainable Future Fund | Intermediate-Term Municipal Income Fund |
| Sustainable Leaders Fund | Short-Term Municipal Income Fund |
| Strategic Intermediate Municipal Fund | |
| Value | Tax Exempt Income Fund |
| International Value Fund | Tax-Free High Yield Fund |
| Large Cap Value Fund | |
| Small Cap Value Fund | State tax-free income funds:‡ |
| California, Massachusetts, Minnesota, | |
| New Jersey, New York, Ohio, and Pennsylvania |
| 42 Managed Municipal Income Trust |
| Asset Allocation | Asset Allocation (cont.) |
| George Putnam Balanced Fund | Retirement Advantage Maturity Fund |
| Retirement Advantage 2065 Fund | |
| Dynamic Asset Allocation Balanced Fund | Retirement Advantage 2060 Fund |
| Dynamic Asset Allocation Conservative Fund | Retirement Advantage 2055 Fund |
| Dynamic Asset Allocation Growth Fund | Retirement Advantage 2050 Fund |
| Retirement Advantage 2045 Fund | |
| Multi-Asset Income Fund | Retirement Advantage 2040 Fund |
| Retirement Advantage 2035 Fund | |
| Retirement Advantage 2030 Fund | |
| Retirement Advantage 2025 Fund | |
| Sustainable Retirement Maturity Fund | |
| Sustainable Retirement 2065 Fund | |
| Sustainable Retirement 2060 Fund | |
| Sustainable Retirement 2055 Fund | |
| Sustainable Retirement 2050 Fund | |
| Sustainable Retirement 2045 Fund | |
| Sustainable Retirement 2040 Fund | |
| Sustainable Retirement 2035 Fund | |
| Sustainable Retirement 2030 Fund | |
| Sustainable Retirement 2025 Fund |
* You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.
† You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.
‡ Not available in all states.
Check your account balances and the most recent month-end performance in the Individual Investors section at putnam.com.
| Managed Municipal Income Trust 43 |
Fund information
Founded over 85 years ago, Putnam Investments was built around the concept that a balance between risk and reward is the hallmark of a well-rounded financial program. We manage funds across income, value, blend, growth, sustainable, and asset allocation categories.
| Investment Manager | Trustees | Richard T. Kircher |
| Putnam Investment | Kenneth R. Leibler, Chair | Vice President and |
| Management, LLC | Barbara M. Baumann, Vice Chair | BSA Compliance Officer |
| 100 Federal Street | Liaquat Ahamed | |
| Boston, MA 02110 | Katinka Domotorffy | Martin Lemaire |
| Catharine Bond Hill | Vice President and | |
| Investment Sub-Advisor | Jennifer Williams Murphy | Derivatives Risk Manager |
| Putnam Investments Limited | Marie Pillai | |
| 16 St James’s Street | George Putnam III | Susan G. Malloy |
| London, England SW1A 1ER | Robert L. Reynolds | Vice President and |
| Manoj P. Singh | Assistant Treasurer | |
| Marketing Services | Mona K. Sutphen | |
| Putnam Retail Management | Alan G. McCormack | |
| Limited Partnership | Officers | Vice President and |
| 100 Federal Street | Robert L. Reynolds | Derivatives Risk Manager |
| Boston, MA 02110 | President | |
| Denere P. Poulack | ||
| Custodian | James F. Clark | Assistant Vice President, |
| State Street Bank | Vice President, Chief Compliance | Assistant Clerk, and |
| and Trust Company | Officer, and Chief Risk Officer | Assistant Treasurer |
| Legal Counsel | Michael J. Higgins | Janet C. Smith |
| Ropes & Gray LLP | Vice President, Treasurer, | Vice President, |
| and Clerk | Principal Financial Officer, | |
| Principal Accounting Officer, | ||
| Jonathan S. Horwitz | and Assistant Treasurer | |
| Executive Vice President, | ||
| Principal Executive Officer, | Stephen J. Tate | |
| and Compliance Liaison | Vice President and | |
| Chief Legal Officer | ||
| Mark C. Trenchard | ||
| Vice President |
| 44 Managed Municipal Income Trust |
Call 1-800-225-1581 Monday through Friday between 8:00 a.m. and 8:00 p.m. Eastern Time, or visit putnam.com anytime for up-to-date information about the fund’s NAV.
| Item 2. Code of Ethics: |
| Not Applicable |
| Item 3. Audit Committee Financial Expert: |
| Not Applicable |
| Item 4. Principal Accountant Fees and Services: |
| Not Applicable |
| Item 5. Audit Committee |
| Not Applicable |
| Item 6. Schedule of Investments: |
| The registrant’s schedule of investments in unaffiliated issuers is included in the report to shareholders in Item 1 above. |
| Item 7. Disclosure of Proxy Voting Policies and Procedures For Closed-End Management Investment Companies: |
| Not applicable |
| Item 8. Portfolio Managers of Closed-End Management Investment Companies |
| (a) Not applicable |
| (b) There have been no changes to the list of the registrant’s identified portfolio managers included in the registrant’s report on Form N-CSR for the most recent completed fiscal year. |
| Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers: |
| Maximum | |||||
| Total Number | Number (or | ||||
| of Shares | Approximate | ||||
| Purchased | Dollar Value) | ||||
| as Part | of Shares | ||||
| of Publicly | that May Yet Be | ||||
| Total Number | Average | Announced | Purchased | ||
| of Shares | Price Paid | Plans or | under the Plans | ||
| Period | Purchased | per Share | Programs* | or Programs** | |
| November 1 – November 30, 2022 | — | — | — | 4,841,634 | |
| December 1 – December 31, 2022 | — | — | — | 4,841,634 | |
| January 1 – January 31, 2023 | — | — | — | 4,841,634 | |
| February 1 – February 28, 2023 | — | — | — | 4,841,634 | |
| March 1 – March 31, 2023 | — | — | — | 4,841,634 | |
| April 1 – April 30, 2023 | 215,074 | $6.01 | 215,074 | 4,626,560 | |
| * In October 2005, the Board of Trustees of the Putnam Funds initiated the closed-end fund share repurchase program, which, as subsequently amended, authorized the fund to repurchase of up to 10% of its fund’s outstanding common shares over the two-years ending October 5, 2007. The Trustees have subsequently renewed the program on an annual basis. The program renewed by the Board in September 2021, which was in effect between October 1, 2021 and September 30, 2022, allowed the fund to repurchase up to 4,893,483 of its shares. The program renewed by the Board in September 2022, which is in effect between October 1, 2022 and September 30, 2023, allows the fund to repurchase up to 4,877,463 of its shares. |
| ** Information prior to October 1, 2022, is based on the total number of shares eligible for repurchase under the program, as amended through September 2021. Information from October 1, 2022 forward is based on the total number of shares eligible for repurchase under the program, as amended through September 2022. |
| Item 10. Submission of Matters to a Vote of Security Holders: |
| Not applicable |
| Item 11. Controls and Procedures: |
| (a) The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the effectiveness of the design and operation of the registrant’s disclosure controls and procedures as of a date within 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: Not applicable |
| Item 12. Disclosures of Securities Lending Activities for Closed-End Investment Companies: |
| Not Applicable |
| Item 13. Exhibits: |
| (a)(1) Not applicable |
| (a)(3) 19(a) Notices to Beneficial Owners are filed herewith. |
| (b) The certifications required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended, are filed herewith. |
| SIGNATURES |
| Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. |
| Putnam Managed Municipal Income Trust |
| By (Signature and Title): |
| /s/ Janet C. Smith Janet C. Smith Principal Accounting Officer |
| Date: June 28, 2023 |
| Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. |
| By (Signature and Title): |
| /s/ Jonathan S. Horwitz Jonathan S. Horwitz Principal Executive Officer |
| Date: June 28, 2023 |
| By (Signature and Title): |
| /s/ Janet C. Smith Janet C. Smith Principal Financial Officer |
| Date: June 28, 2023 |