UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number: 811-05597
Morgan Stanley Municipal Income Opportunities Trust
(Exact name of registrant as specified in charter)
1221 Avenue of the Americas, New York, New York 10020
(Address of principal executive offices) (Zip code)
Ronald E. Robison
1221 Avenue of the Americas, New York, New York 10020
(Name and address of agent for service)
Registrant's telephone number, including area code: 212-762-4000
Date of fiscal year end: May 31, 2006
Date of reporting period: August 31, 2005
ITEM 1. SCHEDULE OF INVESTMENTS.
The Fund's schedule of investments as of the close of the reporting period
prepared pursuant to Rule 12-12 of Regulation S-X is as follows:
MORGAN STANLEY MUNICIPAL INCOME OPPORTUNITIES TRUST
PORTFOLIO OF INVESTMENTS August 31, 2005 (unaudited)
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
--------- ------ -------- ----------
TAX-EXEMPT MUNICIPAL BONDS (96.2%)
Educational Facilities Revenue (4.3%)
1,100 ABAG Finance Authority for Nonprofit Corporations, California, 7.50% 05/01/11 $ 1,141,173
National Center for International Schools COPs
500 San Diego County, California, The Burnham Institute COPs 6.25 09/01/29 527,345
1,000 Bellalago Educational Facilities Benefits District, Florida, 5.80 05/01/34 1,040,720
Bellalago Charter School Ser 2004 B
500 Illinois Finance Authority, Fullerton Village Student Housing 5.125 06/01/35 508,065
Ser 2004 A
500 Maryland Industrial Development Financing Authority, Our Lady of 6.00 05/01/35 520,330
Good Counsel High School Ser 2005 A
1,000 Westchester County Industrial Development Agency, New York, 5.375 08/01/24 1,054,900
Guiding Eyes for The Blind Inc Ser 2004
2,000 Chattanooga Health Educational & Housing, Tennessee, CDFI 5.125 10/01/35 2,020,320
Ser 2005 A
------------
6,600 6,812,853
------------
Hospital Revenue (15.6%)
1,000 Colbert County - Northwest Health Care Authority, Alabama, Helen 5.75 06/01/27 1,045,690
Keller Hospital Ser 2003
2,000 Baxter County, Arkansas, Baxter County Regional Hospital Impr & 5.625 09/01/28 2,070,060
Refg Ser 1999 B
2,000 Hawaii Department of Budget & Finance, Kuakini Health 2002 Ser A 6.375 07/01/32 2,163,960
1,000 Indiana Health Facility Financing Authority, Riverview Hospital 6.125 08/01/31 1,086,820
Ser 2002
2,000 Maryland Health & Higher Educational Facilities Authority, 6.75 07/01/30 2,247,940
University of Maryland Medical Center Ser 2000
600 Gaylord Hospital Financing Authority, Michigan, Otsego Memorial 6.50 01/01/37 625,842
Hospital Ser 2004
1,500 St. Paul, Minnesota, Housing and Redevelopment Authority, 6.00 11/15/35 1,634,415
HealthEast Project Ser 2005 (WI)
3,000 Henderson, Nevada, Catholic Health West 1998 Ser A 5.375 07/01/26 3,091,320
1,500 New Hampshire Higher Educational & Health Facilities Authority, 6.00 05/01/28 1,542,780
Littleton Hospital Assn Ser 1998 A
2,000 New Jersey Health Care Facilities Financing Authority, Raritan Bay 7.25 07/01/27 2,059,600
Medical Center Ser 1994
1,105 Nassau County Industrial Development Agency, New York, North 5.875 11/01/11 1,212,108
Shore Health Ser B **
1,000 Monroe County Hospital Authority, Pennsylvania, Pocono Medical 6.00 01/01/43 1,082,400
Center Ser 2003
2,000 South Carolina Jobs - Economic Development Authority, Palmetto 6.875 08/01/27 2,311,880
Health Refg Ser 2003 C
1,000 Knox County Health, Educational & Housing Facility Board, 6.50 04/15/31 1,074,150
Tennessee, Baptist Health of East Tennessee Ser 2002
1,000 Decatur Hospital Authority, Texas, Wise Regional Health 7.125 09/01/34 1,109,200
Ser 2004 A
350 Hidalgo County Health Services Corporation, Texas, Mission 5.00 08/15/19 359,093
Hospital Ser 2005
-------- ------------
23,055 24,717,258
-------- ------------
Industrial Development/Pollution Control Revenue (14.4%)
2,000 Los Angeles, California, American Airlines Inc Terminal 4 7.50 12/01/24 2,134,960
Ser 2002 C (AMT)
360 Metropolitan Washington Airports Authority, District of Columbia & 10.125 09/01/11 360,529
Virginia, CaterAir International Corp Ser 1991 (AMT)++
2,000 Chicago, Illinois, Chicago O'Hare Int'l Airport/United Airlines 6.30 05/01/16 320,420
Inc Refg Ser 2001 C (a)
1,500 Iowa Finance Authority, IPSCO Inc Ser 1997 (AMT) 6.00 06/01/27 1,541,415
2,000 New York City Industrial Development Agency, New York, 7 World 6.50 03/01/35 2,153,100
Trade Center LLC Ser 2005 A
1,500 Dayton, Ohio, Emery Air Freight Corp Refg Ser 1998 A 5.625 02/01/18 1,598,805
455 Zanesville-Muskingum County Port Authority, Ohio, Anchor Glass 10.25 12/01/08 455,278
Container Corp Ser 1989 B (AMT)
2,000 Beaver County Industrial Development Authority, Pennsylvania, 7.75 05/01/20 2,058,160
Toledo Edison Co Collateralized Ser 1995 B
2,920 Carbon County Industrial Development Authority, Pennsylvania, 6.65 05/01/10 3,175,354
Panther Creek Partners Refg 2000 Ser (AMT)
Pennsylvania Economic Development Financing Agency,
750 Colver Project Refg Ser G 5.125 12/01/15 760,395
1,000 Reliant Energy Inc Ser 2001 A (AMT) 6.75 12/01/36 1,079,480
1,225 Lexington County, South Carolina, Ellett Brothers Inc Refg Ser 1988 7.50 09/01/08 1,214,245
1,000 Brazos River Authority, Texas, TXU Electric Refg Ser 1999 A (AMT) 7.70 04/01/33 1,205,170
1,000 Chesterfield County Industrial Development Authority, Virginia, 5.50 10/01/09 1,036,700
Virginia Electric & Power Co Ser 1985
3,700 Pittsylvania County Industrial Development Authority, Virginia, 7.45 01/01/09 3,837,713
Multi-Trade Pittsylvania County Ser 1994 A (AMT)
-------- ------------
23,410 22,931,724
-------- ------------
Mortgage Revenue - Multi-Family (7.1%)
Washington County Housing & Redevelopment Authority, Minnesota,
3,885 Courtly Park Ser 1989 A 9.75 06/15/19 3,035,273
1,165 Courtly Park Ser 1989 A (AMT) 10.25 06/15/19 910,354
24,080 Courtly Park Ser 1989 B 0.00 06/15/19 439,941
8,678 Courtly Park Ser 1989 B (AMT) 0.00 06/15/19 158,545
White Bear Lake, Minnesota,
3,715 White Bear Woods Apts Phase II Refg 1989 Ser A 9.75 06/15/19 3,215,778
19,771 White Bear Woods Apts Phase II Refg 1989 Ser B 0.00 06/15/19 361,224
3,000 Brookhaven Industrial Development Agency, New York, Woodcrest 6.375 12/01/37 3,095,910
Estates Ser 1998 A (AMT)
-------- ------------
64,294 11,217,025
-------- ------------
Mortgage Revenue - Single Family (6.0%)
Colorado Housing & Finance Authority,
155 1996 Ser B (AMT) 7.65 11/01/26 156,127
625 Ser 1998 D-2 (AMT) 6.35 11/01/29 636,356
22,660 New Hampshire Housing Finance Authority, Residential 1983 Ser B 0.00 01/01/15 8,699,401
-------- ------------
23,440 9,491,884
-------- ------------
Nursing & Health Related Facilities Revenue (11.0%)
Escambia County, Florida,
4,885 Pensacola Care Development Centers Ser 1989 10.25 07/01/11 4,945,965
1,125 Pensacola Care Development Centers Ser 1989 A 10.25 07/01/11 1,139,040
1,000 Orange County Health Facilities Authority, Florida, Westminister 6.75 04/01/34 997,410
Community Care Services Inc Ser 1999
1,000 Pinellas County Health Facilities Authority, Florida, Oaks of 6.25 06/01/34 1,060,870
Clearwater Ser 2004
1,925 Iowa Health Facilities Development Financing Authority, Care 9.25 07/01/25 2,376,490
Initiatives Ser 1996
515 Kentucky Economic Development Financing Authority, 6.50# 01/01/29 521,571
AHF/Kentucky-Iowa Inc Ser 2003
1,000 Westside Habilitation Center, Louisiana, Intermediate Care 8.375 10/01/13 1,008,420
Facility for the Mentally Retarded Refg Ser 1993
1,775 Massachusetts Development Finance Agency, New England Center 5.875 11/01/18 1,820,440
for Children Ser 1998
1,000 Massachusetts Health & Educational Facilities Authority, The 6.125 07/01/29 1,024,980
Learning Center for Deaf Children Ser C
1,000 St Louis County Industrial Development Authority, Missouri, 6.625 11/15/35 1,044,200
Pediatric Rehabilitation Center Ser 2003 A
730 New Jersey Economic Development Authority, First Mortgage - 5.875 01/01/37 753,367
Lions Gate Project Ser 2005 A
780 Mount Vernon Industrial Development Agency, New York, 6.00 06/01/09 800,670
Meadowview at the Wartburg Ser 1999
-------- ------------
16,735 17,493,423
-------- ------------
.
Recreational Facilities Revenue (4.6%)
2,000 Sacramento Financing Authority, California, Convention Center 6.25 01/01/30 2,109,460
Hotel 1999 Ser A
1,000 San Diego County, San Diego Natural History Museum COPs 5.70 02/01/28 982,320
Mashantucket (Western) Pequot Tribe, Connecticut,
1,010 Special 1996 Ser A (b) 6.40 09/01/11 1,056,601
1,000 Special 1997 Ser B (b) 5.75 09/01/27 1,037,700
2,000 Austin Convention Enterprises Inc, Texas, Convention Center Hotel 6.70 01/01/32 2,134,160
Ser 2000 A
-------- ------------
7,010 7,320,241
-------- ------------
Retirement & Life Care Facilities Revenue (16.5%)
500 Orange County Health Facilities Authority, Florida, Orlando 5.70 07/01/26 509,260
Lutheran Towers Inc. Ser 2005
1,000 St Johns County Industrial Development Authority, Florida, 8.00 01/01/30 1,083,110
Glenmoor Ser 1999 A
1,000 Hawaii Department of Budget & Finance, Kahala Nui 2003 Ser A 8.00 11/15/33 1,160,120
1,500 Lenexa, Kansas, Lakeview Village - Southridge Ser 2002 C 6.875 05/15/32 1,642,275
1,500 Maryland Health & Higher Educational Facilities Authority, Mercy 6.00 04/01/35 1,593,900
Ridge 2003 Ser A
1,500 Massachusetts Development Finance Agency, Loomis Communities 5.75 07/01/23 1,515,015
Ser 1999 A
1,500 Kansas City Industrial Development Agency, Missouri, Bishop 6.50 01/01/35 1,586,895
Spencer 2004 Ser A
New Jersey Economic Development Authority,
1,000 Cedar Crest Village Inc Ser 2001 A 7.25 11/15/31 1,095,660
1,000 Franciscan Oaks Ser 1997 5.70 10/01/17 1,021,620
1,000 The Presbyterian Home at Montgomery Ser 2001 A 6.375 11/01/31 1,040,350
2,000 United Methodist Homes of New Jersey Ser 1998 5.125 07/01/25 2,008,780
3,250 Suffolk County Industrial Development Agency, New York, 7.25 11/01/28 3,547,342
Jefferson's Ferry Ser 1999
1,000 North Carolina Medical Care Commission, The Given Estate, 6.50 07/01/32 1,078,660
Ser 2003 A
1,000 Chester County Health & Education Facilities Authority, 7.625 07/01/34 1,118,730
Pennsylvania, Jenner's Pond Inc Ser 2002
1,000 Montgomery County Industry Development Authorty, Pennsylvania, 6.25 02/01/35 1,060,530
Whitemarsh Community Ser 2005
750 Shelby County Health, Educational & Housing Facilities Board, 7.25 12/01/34 793,118
Tennessee, Village at Germantown Ser 2003 A
1,000 Houston Health Facilities Development Coproration, Texas, 7.125 02/15/34 1,110,260
Buckingham Senior Living Community Ser 2004 A
2,100 Vermont Economic Development Authority, Wake Robin Corp 6.75 03/01/29 2,217,138
Ser 1999 A
1,000 Peninsula Ports Authority of Virginia, Virginia Baptist Homes 7.375 12/01/32 1,119,660
Ser 2003 A
-------- ------------
24,600 26,302,423
-------- ------------
Tax Allocation Revenue (13.5%)
500 Carlsbad, California, Assessment District No 2002-2001 Poinsettia 5.20 09/02/35 506,230
Lane East Ser 2005 A
1,000 San Marcos Community Facilities District No 2002-01, California, 5.95 09/01/35 1,069,820
University Commons Ser 2004
2,000 Elk Valley Public Improvement Corporation, Colorado, Ser 2001 A 7.35 09/01/31 2,147,880
1,000 Southlands Metropolitan District No 1, Colorado, Ser 2004 7.125 12/01/34 1,105,470
2,000 Beacon Lakes, Community Development District, Florida, 6.90 05/01/35 2,136,060
Ser 2003 A
1,000 Midtown Miami Florida Community Development District, Florida, 6.25 05/01/37 1,067,750
Ser 2004 A
2,000 Atlanta, Georgia, Tax Allocation Bonds, Eastside Project Ser 2005 B 5.60 01/01/30 2,039,060
2,000 Chicago, Illinois, Lake Shore East Ser 2002 6.75 12/01/32 2,197,700
725 Lincolnshire, Illinois, Special Service Area No 1 Ser 2004 6.25 03/01/34 783,428
2,000 Des Peres, Missouri, West County Center Ser 2002 5.75 04/15/20 2,077,280
4,000 Fenton, Missouri, Gravois Bluffs Redevelopment Ser 2001 A Refg 7.00 10/01/21 4,336,240
1,980 Las Vegas District No 808, Nevada, Summerlin Ser 2001 6.75 06/01/21 2,047,597
-------- ------------
20,205 21,514,515
-------- ------------
Transportation Facilities Revenue (2.3%)
1,650 Mid-Bay Bridge Authority, Florida, Sr Lien Crossover Refg 5.85 10/01/13 1,794,160
Ser 1993 A (Ambac)
750 Augusta, Georgia, Airport Passenger Facility Charge Ser 2005 A 5.15 01/01/35 771,788
1,000 Nevada Department of Business & Industry, Las Vegas Monorail 7.375 01/01/40 1,051,160
2nd Tier Ser 2000
-------- ------------
3,400 3,617,108
-------- ------------
Other Revenue (0.9%)
1,500 New York Counties Tobacco Trust IV Ser 2005A 5.00 06/01/45 1,480,740
-------- ------------
214,249 TOTAL TAX-EXEMPT MUNICIPAL BONDS (Cost $159,107,742) 152,899,194
-------- ------------
SHORT-TERM TAX-EXEMPT MUNICIPAL OBLIGATIONS (1.6%)
1,030 Idaho Health Facilities Authority, St Luke's Regional Medical Center 2.27* 07/01/30 1,030,000
Ser 2000 (FSA) (Demand 09/01/05)
370 Indiana Health Facility Financing Authority, Clarian Health 2.32* 03/01/30 370,000
Obligated Group Ser 2000 B (Demand 09/01/05)
1,100 Roanoke Industrial Development Authority, Virginia, Carilion Health 2.34* 07/01/27 1,100,000
System Ser 1997 A (Demand 09/01/05)
-------- ------------
2,500 TOTAL SHORT-TERM TAX-EXEMPT MUNICIPAL OBLIGATIONS (Cost $2,500,000) 2,500,000
-------- ------------
$216,749 TOTAL INVESTMENTS (Cost $161,607,742) (c) (d) 97.8% 155,399,194
========
OTHER ASSETS IN EXCESS OF LIABILITIES 2.2 3,473,946
----- ------------
NET ASSETS 100.0% $158,873,140
===== ============
----------
AMT Alternative Minimum Tax.
COPs Certificates of Participation.
WI Security purchased on a when-issued basis.
* Current coupon of variable rate demand obligation.
** A portion of this security has been physically segregated in connection
with open futures contracts in the amount equal to $16,250 .
++ Joint exemption in locations shown.
# Currently a 6.50% coupon; increases to 8.00% on January 1, 2009.
(a) Issuer in bankruptcy; non-income producing security
(b) Resale is restricted to qualified institutional investors.
(c) Securities have been designated as collateral in an amount equal to
$4,808,194 in connection with open futures contracts and security purchased
on a when-issued basis.
(d) The aggregate cost for federal income tax purposes is $161,509,074. The
aggregate gross unrealized appreciation is $9,053,319 and the aggregate
gross unrealized depreciation is $15,163,199, resulting in net unrealized
depreciation of $6,109,880.
Bond Insurance:
Ambac Ambac Assurance Corporation.
FSA Financial Security Assurance Inc.
FUTURES CONTRACTS OPEN AT AUGUST 31, 2005:
DESCRIPTION,
NUMBER OF DELIVERY MONTH UNDERLYING FACE UNREALIZED
CONTRACTS LONG/SHORT AND YEAR AMOUNT AT VALUE DEPRECIATION
--------- ---------- ------------------------- --------------- ------------
25 Short U.S. Treasury Notes 5 yr
December 2005 $(2,709,375) $(21,826)
5 Short U.S. Treasury Notes 10 yr
December 2005 (560,391) (5,373)
--------
Total unrealized depreciation.............. $(27,200)
========
GEOGRAPHIC SUMMARY OF INVESTMENTS
Based on Market Value as a Percent of Total Investments
August 31, 2005 (unaudited)
Alabama 0.7%
Arkansas 1.3
California 5.4
Colorado 2.6
Connecticut 1.3
District of Columbia 0.2
Florida 10.2
Georgia 1.8
Hawaii 2.1
Idaho 0.7
Illinois 2.5
Indiana 0.9
Iowa 2.5
Kansas 1.1
Kentucky 0.3
Louisiana 0.7
Maryland 2.8
Massachusetts 2.8
Michigan 0.4
Minnesota 6.3
Missouri 5.8
Nevada 4.0
New Hampshire 6.6
New Jersey 5.1
New York 8.6
North Carolina 0.7
Ohio 1.3
Pennsylvania 6.7
South Carolina 2.3
Tennessee 2.5
Texas 3.8
Vermont 1.4
Virginia 4.8
Joint exemptions* (0.2)
-----
Total+ 100.0%
=====
----------
* Joint exemptions have been included in each geographic location.
+ Does not include open short futures contracts with an underlying face
amount of $3,269,766, with unrealized depreciation of $27,200.
ITEM 2. CONTROLS AND PROCEDURES.
(a) The Fund's principal executive officer and principal financial officer have
concluded that the Fund's disclosure controls and procedures are sufficient to
ensure that information required to be disclosed by the Fund in this Form N-Q
was recorded, processed, summarized and reported within the time periods
specified in the Securities and Exchange Commission's rules and forms, based
upon such officers' evaluation of these controls and procedures as of a date
within 90 days of the filing date of the report.
(b) There were no changes in the Fund's internal control over financial
reporting that occurred during the registrant's fiscal quarter that has
materially affected, or is reasonably likely to materially affect, the Fund's
internal control over financial reporting.
ITEM 3. EXHIBITS.
(a) A separate certification for each principal executive officer and principal
financial officer of the registrant are attached hereto.
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Morgan Stanley Municipal Income Opportunities Trust
/s/ Ronald E. Robison
-------------------------------------
Ronald E. Robison
Principal Executive Officer
October 20, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed by the following
persons on behalf of the registrant and in the capacities and on the dates
indicated.
/s/ Ronald E. Robison
-------------------------------------
Ronald E. Robison
Principal Executive Officer
October 20, 2005
/s/ Francis Smith
-------------------------------------
Francis Smith
Principal Financial Officer
October 20, 2005
3