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: February 28, 2006
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 FEBRUARY 28, 2006 (UNAUDITED)
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
--------- ------ -------- -----------
TAX-EXEMPT MUNICIPAL BONDS (96.5%)
General Obligation (1.6%)
$ 1,000 Bolingbrook, Illinois, Sales Tax Revenue 0.00% 01/01/24 $ 908,340
1,500 Bucks County, Pennsylvania, Industrial Development Authority 6.125 01/01/25 1,560,870
Ann's Choice Inc Ser A
------- -----------
2,500 2,469,210
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Educational Facilities Revenue (4.3%)
1,100 ABAG Finance Authority for Nonprofit Corporations, California, 7.50 05/01/11 1,127,863
National Center for International Schools COPs
500 San Diego County, California, The Burnham Institute COPs 6.25 09/01/29 548,215
1,000 Bellalago Educational Facilities Benefits District, Florida, 5.80 05/01/34 1,032,810
Bellalago Charter School Ser 2004 B
500 Illinois Finance Authority, Fullerton Village Student Housing 5.125 06/01/35 507,355
Ser 2004 A
500 Maryland Industrial Development Financing Authority, Our Lady 6.00 05/01/35 524,940
of Good Counsel High School Ser 2005 A
1,000 Westchester County Industrial Development Agency, New York, 5.375 08/01/24 1,052,140
Guiding Eyes for The Blind Inc Ser 2004
2,000 Chattanooga Health Educational & Housing Facilities Board, 5.125 10/01/35 2,010,440
Tennessee, Student Housing Refg Ser 2005 A
------- -----------
6,600 6,803,763
------- -----------
Hospital Revenue (13.4%)
1,000 Colbert County - Northwest Health Care Authority, Alabama, 5.75 06/01/27 1,034,760
Helen Keller Hospital Ser 2003
2,000 Baxter County, Arkansas, Baxter County Regional Hospital 5.625 09/01/28 2,054,300
Impr & Refg Ser 1999 B
2,000 Hawaii Department of Budget & Finance, Kuakini Health 2002 Ser A 6.375 07/01/32 2,162,940
1,000 Indiana Health Facility Financing Authority, Riverview Hospital 6.125 08/01/31 1,076,970
Ser 2002
600 Gaylord Hospital Financing Authority, Michigan, Otsego Memorial 6.50 01/01/37 622,290
Hospital Ser 2004
1,500 St Paul, Housing & Redevelopment Authority, Minnesota, 6.00 11/15/35 1,625,715
HealthEast Ser 2005
2,335 Henderson, Nevada, Catholic Health West 1998 Ser A 5.375 07/01/26 2,395,056
1,500 New Hampshire Higher Educational & Health Facilities Authority, 6.00 05/01/28 1,537,605
Littleton Hospital Assn Ser 1998 A
2,000 New Jersey Health Care Facilities Financing Authority, Raritan 7.25 07/01/27 2,051,200
Bay Medical Center Ser 1994
955 Nassau County Industrial Development Agency, New York, North 5.875 11/01/11 1,014,067
Shore Health Ser B
1,000 Monroe County Hospital Authority, Pennsylvania, Pocono Medical 6.00 01/01/43 1,071,640
Center Ser 2003
2,000 South Carolina Jobs - Economic Development Authority, Palmetto 6.875 08/01/27 2,373,288
Health Alliance Refg Ser 2003 C
1,000 Knox County Health, Educational & Housing Facility Board, 6.50 04/15/31 1,066,860
Tennessee, Baptist Health of East Tennessee Ser 2002
1,000 Decatur Hospital Authority, Texas, Wise Regional Health 7.125 09/01/34 1,089,670
Ser 2004 A
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19,890 21,176,361
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Industrial Development/Pollution Control Revenue (11.7%)
260 Metropolitan Washington Airports Authority, District of Columbia 10.125 09/01/11 260,390
& Virginia, CaterAir International Corp Ser 1991 (AMT) ++
1,500 Iowa Finance Authority, IPSCO Inc Ser 1997 (AMT) 6.00 06/01/27 1,520,970
New York City Industrial Development Agency, New York,
2,000 7 World Trade Center LLC Ser 2005 A 6.50 03/01/35 2,108,460
2,000 American Airlines Inc Ser 2005 (AMT) 7.75 08/01/31 2,162,520
250 New York Counties Tobacco Trust IV, New York, Ser 2005 A 5.00 06/01/45 243,893
1,500 Tsasc Inc, New York, Ser 1 5.125 06/01/42 1,490,085
380 Zanesville-Muskingum County Port Authority, Ohio, Anchor Glass 10.25 12/01/08 380,228
Container Corp Ser 1989 B (AMT)
2,920 Carbon County Industrial Development Authority, Pennsylvania, 6.65 05/01/10 3,084,980
Panther Creek Partners Refg 2000 Ser (AMT)
1,000 Pennsylvania Economic Development Financing Authority, Reliant 6.75 12/01/36 1,066,700
Energy Inc Ser 2001 A (AMT)
1,225 Lexington County, South Carolina, Ellett Brothers Inc Refg Ser 7.50 09/01/08 1,213,926
1988
1,000 Brazos River Authority, Texas, Texas Utilities Electric Co Refg 7.70 04/01/33 1,172,870
Ser 1999 A (AMT)
1,000 Chesterfield County Industrial Development Authority, Virginia, 5.50 10/01/09 1,021,790
Virginia Electric & Power Co Ser 1985
2,700 Pittsylvania County Industrial Development Authority, Virginia, 7.45 01/01/09 2,748,114
Multi-Trade Pittsylvania County Ser 1994 A (AMT)
------- -----------
17,735 18,474,926
------- -----------
Mortgage Revenue - Multi-Family (7.2%)
Washington County Housing & Redevelopment Authority, Minnesota,
3,885 Courtly Park Ser 1989 A 9.75 06/15/19 3,034,690
1,165 Courtly Park Ser 1989 A (AMT) 10.25 06/15/19 910,121
24,080 Courtly Park Ser 1989 B 0.00 06/15/19 503,753
8,678 Courtly Park Ser 1989 B (AMT) 0.00 06/15/19 181,541
White Bear Lake, Minnesota,
3,715 White Bear Woods Apts Phase II Refg 1989 Ser A 9.75 06/15/19 3,209,983
19,771 White Bear Woods Apts Phase II Refg 1989 Ser B 0.00 06/15/19 413,618
3,000 Brookhaven Industrial Development Agency, New York, 6.375 12/01/37 3,080,520
Woodcrest Estates Ser 1998 A (AMT)
------- -----------
64,294 11,334,226
------- -----------
Mortgage Revenue - Single Family (5.6%)
Colorado Housing & Finance Authority,
115 1996 Ser B (AMT) 7.65 11/01/26 116,481
575 Ser 1998 D-2 (AMT) 6.35 11/01/29 586,972
20,050 New Hampshire Housing Finance Authority, Residential 1983 Ser B 0.00 01/01/15 8,095,388
-------- ------------
20,740 8,798,841
-------- ------------
Nursing & Health Related Facilities Revenue (11.5%)
Escambia County, Florida,
4,885 Pensacola Care Development Centers Ser 1989 10.25 07/01/11 4,947,186
1,125 Pensacola Care Development Centers Ser 1989 A 10.25 07/01/11 1,139,321
1,000 Orange County Health Facilities Authority, Florida, Westminister 6.75 04/01/34 1,036,280
Community Care Services Inc Ser 1999
1,000 Pinellas County Health Facilities Authority, Florida, Oaks of 6.25 06/01/34 1,064,460
Clearwater Ser 2004
1,925 Iowa Health Facilities Development Financing Authority, Care 9.25 07/01/25 2,313,157
Initiatives Ser 1996
515 Kentucky Economic Development Financing Authority, 6.50# 01/01/29 519,769
AHF/Kentucky-Iowa Inc Ser 2003
1,000 Westside Habilitation Center, Louisiana, Intermediate Care Facility 8.375 10/01/13 1,003,750
for the Mentally Retarded Refg Ser 1993
1,725 Massachusetts Development Finance Agency, New England 5.875 11/01/18 1,763,588
Center for Children Ser 1998
1,000 Massachusetts Health & Educational Facilities Authority, The 6.125 07/01/29 1,017,630
Learning Center for Deaf Children Ser C
1,000 St Louis County Industrial Development Authority, Missouri, 6.625 11/15/35 1,038,340
Pediatric Rehabilitation Center Ser 2003 A
780 Mount Vernon Industrial Development Agency, New York, 6.00 06/01/09 797,706
Meadowview at the Wartburg Ser 1999
1,500 Suffolk County, New York, Industrial Development Agency 6.375 01/01/39 1,511,370
Medford Hamlet Assisted Living Project
-------- ------------
17,455 18,152,557
-------- ------------
Recreational Facilities Revenue (4.6%)
2,000 Sacramento Financing Authority, California, Convention Center 6.25 01/01/30 2,083,720
Hotel 1999 Ser A
1,000 San Diego County, California, San Diego Natural History Museum 5.70 02/01/28 982,520
COPs
Mashantucket (Western) Pequot Tribe, Connecticut,
1,010 Special 1996 Ser A (a) 6.40 09/01/11 1,042,249
1,000 Special 1997 Ser B (a) 5.75 09/01/27 1,031,470
2,000 Austin Convention Enterprises Inc, Texas, Convention Center Hotel 6.70 01/01/32 2,115,820
Ser 2000 A
-------- ------------
7,010 7,255,779
-------- ------------
Retirement & Life Care Facilities Revenue (18.8%)
500 Orange County Health Facilities Authority, Florida, Orlando 5.70 07/01/26 508,610
Lutheran Towers Inc Ser 2005
1,000 St Johns County Industrial Development Authority, Florida, 8.00 01/01/30 1,076,030
Glenmoor Ser 1999 A
1,000 Illinois Finance Authority, Landing at Plymouth Ser 2005 A 6.00 05/15/37 1,008,860
1,000 Hawaii Department of Budget & Finance, Kahala Nui 2003 Ser A 8.00 11/15/33 1,162,970
1,500 Lenexa, Kansas, Lakeview Village - Southridge Ser 2002 C 6.875 05/15/32 1,626,090
1,500 Maryland Health & Higher Educational Facilities Authority, Mercy 6.00 04/01/35 1,585,455
Ridge 2003 Ser A
1,500 Massachusetts Development Finance Agency, Loomis 5.75 07/01/23 1,513,230
Communities Ser 1999 A
1,500 Kansas City Industrial Development Agency, Missouri, Bishop 6.50 01/01/35 1,579,110
Spencer 2004 Ser A
New Jersey Economic Development Authority,
1,000 Cedar Crest Village Inc Ser 2001 A 7.25 11/15/31 1,086,810
1,000 Franciscan Oaks Ser 1997 5.70 10/01/17 1,018,530
730 Lions Gate Ser 2005 A 5.875 01/01/37 750,345
1,000 The Presbyterian Home at Montgomery Ser 2001 A 6.375 11/01/31 1,046,820
2,000 United Methodist Homes of New Jersey Ser 1998 5.125 07/01/25 2,004,880
3,250 Suffolk County Industrial Development Agency, New York, 7.25 11/01/28 3,517,864
Jefferson's Ferry Ser 1999
1,000 North Carolina Medical Care Commission, Given Estate Ser 2003 A 6.50 07/01/32 1,072,620
1,000 Chester County Health & Education Facilities Authority, 7.625 07/01/34 1,139,780
Pennsylvania, Jenner's Pond Inc Ser 2002
1,000 Montgomery County Industry Development Authorty, Pennsylvania, 6.25 02/01/35 1,052,290
Whitemarsh Community Ser 2005
750 Shelby County Health, Educational & Housing Facilities Board, 7.25 12/01/34 779,033
Tennessee, Village at Germantown Ser 2003 A
1,000 Houston Health Facilities Authority, Texas, Buckingham Senior 7.125 02/15/34 1,101,560
Living Community Ser 2004 A
1,000 Lubbock, Texas, Health Facilities Development Corporation 1st 6.50 07/01/26 992,090
Mortgage Carillon Project A
2,100 Vermont Economic Development Authority, Wake Robin Corp Ser 6.75 03/01/29 2,205,021
1999 A
1,000 Peninsula Ports Authority of Virginia, Virginia Baptist Homes Ser 7.375 12/01/32 1,116,400
2003 A
1,000 Virginia Beach Development Authority, Virginia, Westminister- 5.25 11/01/26 1,015,470
Canterbury Refg Ser 2005 A
-------- ------------
28,330 29,959,868
-------- ------------
Tax Allocation Revenue (16.0%)
500 Carlsbad Assessment District No 2002-2001, California, Poinsettia 5.20 09/02/35 502,820
Lane East Ser 2005 A
1,000 San Marcos Community Facilities District # 2002-01, California, 5.95 09/01/35 1,050,240
University Commons Ser 2004
1,000 Santa Ana, Unified School District Community Facilities 5.10 09/01/35 1,002,160
District #2004-1, California, Central Park Ser 2005
2,000 Elk Valley Public Improvement Corporation, Colorado, Ser 2001 A 7.35 09/01/31 2,129,340
2,000 Northwest, Colorado, Metropolitan District #3 6.25 12/01/35 2,063,880
1,000 Southlands Metropolitan District #1, Colorado, Ser 2004 7.125 12/01/34 1,093,890
2,000 Beacon Lakes, Community Development District, Florida, 6.90 05/01/35 2,118,060
Ser 2003 A
1,000 Midtown Miami Community Development District, Florida, Ser 2004 A 6.25 05/01/37 1,066,030
1,000 Renaissance Commons Community Development District, Florida, 5.60 05/01/36 1,019,670
Special Assessment Ser A
2,000 Atlanta, Georgia, Eastside Ser 2005 B 5.60 01/01/30 2,071,480
2,000 Chicago, Illinois, Lake Shore East Ser 2002 6.75 12/01/32 2,174,480
725 Lincolnshire, Illinois, Service Area #1 Sedgebrook Ser 2004 6.25 03/01/34 774,220
2,000 Des Peres, Missouri, West County Center Ser 2002 5.75 04/15/20 2,055,380
4,000 Fenton, Missouri, Gravois Bluffs Redevelopment Ser 2001 A Refg 7.00 10/01/21 4,295,760
1,980 Las Vegas District # 808, Nevada, Summerlin Ser 2001 6.75 06/01/21 2,052,310
-------- ------------
24,205 25,469,720
-------- ------------
Transportation Facilities Revenue (1.8%)
1,650 Mid-Bay Bridge Authority, Florida, Sr Lien Crossover Refg 5.85 10/01/13 1,765,682
Ser 1993 A (Ambac)
1,000 Nevada Department of Business & Industry, Las Vegas Monorail 7.375 01/01/40 1,047,870
2nd Tier Ser 2000
-------- ------------
2,650 2,813,552
-------- ------------
211,409 TOTAL TAX-EXEMPT MUNICIPAL BONDS (Cost $158,856,051) 152,708,803
-------- ------------
CONVERTIBLE BOND (b) (c) (0.4%)
Airlines
633 UAL Corp. (Cost $633,080) 5.00 01/25/21 633,080
-------- ------------
SHORT-TERM TAX-EXEMPT MUNICIPAL OBLIGATIONS (1.4%)
1,200 Orange County Sanitation District, California, Ser 2000 B COPs 2.90* 08/01/30 1,200,000
(Demand 03/01/06)
1,000 Bell County Health Facilities Development Corporation, Texas, Scott 3.01* 08/15/29 1,000,000
and White Memorial Hospital Ser 2001-1 (MBIA) (Demand 3/01/06)
-------- ------------
2,200 TOTAL SHORT-TERM TAX-EXEMPT MUNICIPAL OBLIGATIONS (Cost $2,200,000) 2,200,000
-------- ------------
$214,242 TOTAL INVESTMENTS (Cost $161,689,131) (d) 98.3% 155,541,883
========
OTHER ASSETS IN EXCESS OF LIABILITIES 1.7 2,626,549
----- ------------
NET ASSETS 100.0% $158,168,432
===== ============
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AMT Alternative Minimum Tax.
COPs Certificates of Participation.
* Current coupon of variable rate demand obligation.
++ Joint exemption in locations shown.
# Currently a 6.50% coupon; increases to 8.00% on January 1, 2009.
(a) Resale is restricted to qualified institutional investors.
(b) Taxable convertible bond issued in reorganization.
(c) A security with a total market value equal to $633,080 has been valued at
its fair value as determined in good faith under procedures established by
and under the general supervision of the Fund's Trustees.
(d) The aggregate cost for federal income tax purposes approximates the
aggregate cost for book purposes. The aggregate gross unrealized
appreciation is $7,876,968 and the aggregate gross unrealized depreciation
is $14,024,216, resulting in net unrealized depreciation of $6,147,248.
Bond Insurance:
---------------
Ambac Ambac Assurance Corporation.
Geographic Summary of Investments
Based on Market Value as a Percent of Total Investments
February 28, 2006
Alabama 0.7%
Arkansas 1.3
California 5.5
Colorado 3.8
Connecticut 1.3
District of Columbia 0.2
Florida 10.8
Georgia 1.3
Hawaii 2.1
Illinois 3.9
Indiana 0.7
Iowa 2.5
Kansas 1.0
Kentucky 0.3
Louisiana 0.6
Maryland 1.4
Massachusetts 2.8
Michigan 0.4
Minnesota 6.4
Missouri 5.8
Nevada 3.5
New Hampshire 6.2
New Jersey 5.1
New York 10.9
North Carolina 0.7
Ohio 0.2
Pennsylvania 5.8
South Carolina 2.3
Tennessee 2.5
Texas 4.8
Vermont 1.4
Virginia 4.0
Joint exemption* (0.2)
-----
Total 100.0%
=====
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* Joint exemptions have been included in each geographic location.
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
April 19, 2006
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
April 19, 2006
/s/ Francis Smith
----------------------------------------
Francis Smith
Principal Financial Officer
April 19, 2006
3