Deutsche DWS Municipal Trust N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

FORM N-CSRS

Investment Company Act file number:  811-02671

DWS Municipal Trust

 (Exact Name of Registrant as Specified in Charter)

345 Park Avenue

New York, NY 10154-0004

 (Address of Principal Executive Offices) (Zip Code)

Registrant’s Telephone Number, including Area Code: (212) 250-3220

Paul Schubert

60 Wall Street

New York, NY 10005

 (Name and Address of Agent for Service)

Date of fiscal year end:	5/31
Date of reporting period:	11/30/2012

ITEM 1. REPORT TO STOCKHOLDERS

NOVEMBER 30, 2012

Semiannual Report

to Shareholders

DWS Managed Municipal Bond Fund

Contents

4 Performance Summary

8 Portfolio Management Team

9 Portfolio Summary

10 Investment Portfolio

41 Statement of Assets and Liabilities

43 Statement of Operations

44 Statement of Cash Flows

45 Statement of Changes in Net Assets

46 Financial Highlights

51 Notes to Financial Statements

61 Information About Your Fund's Expenses

63 Investment Management Agreement Approval

68 Summary of Management Fee Evaluation by Independent Fee Consultant

72 Account Management Resources

74 Privacy Statement

This report must be preceded or accompanied by a prospectus. To obtain a summary prospectus, if available, or prospectus for any of our funds, refer to the Account Management Resources information provided in the back of this booklet. We advise you to consider the fund's objectives, risks, charges and expenses carefully before investing. The summary prospectus and prospectus contain this and other important information about the fund. Please read the prospectus carefully before you invest.

Bond investments are subject to interest-rate and credit risks. When interest rates rise, bond prices generally fall. Credit risk refers to the ability of an issuer to make timely payments of principal and interest. Investments in lower-quality ("junk bonds") and non-rated securities present greater risk of loss than investments in higher-quality securities. The fund invests in inverse floaters, which are derivatives that involve leverage and could magnify the fund's gains or losses. Although the fund seeks income that is federally tax-free, a portion of the fund's distributions may be subject to federal, state and local taxes, including the alternative minimum tax. See the prospectus for details.

DWS Investments is part of the Asset & Wealth Management division of Deutsche Bank AG.

NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

Performance Summary November 30, 2012 (Unaudited)

Average Annual Total Returns as of 11/30/12
Unadjusted for Sales Charge	6-Month‡	1-Year	3-Year	5-Year	10-Year
Class A	5.93%	14.09%	7.95%	6.56%	5.42%
Class B	5.45%	13.11%	7.01%	5.69%	4.59%
Class C	5.53%	13.22%	7.13%	5.76%	4.62%
Barclays Municipal Bond Index†	4.18%	10.17%	7.13%	6.23%	5.45%
Adjusted for the Maximum Sales Charge
Class A (max 2.75% load)	3.02%	10.95%	6.95%	5.97%	5.13%
Class B (max 4.00% CDSC)	1.45%	10.11%	6.43%	5.53%	4.59%
Class C (max 1.00% CDSC)	4.53%	13.22%	7.13%	5.76%	4.62%
Barclays Municipal Bond Index†	4.18%	10.17%	7.13%	6.23%	5.45%
No Sales Charges
Class S	6.02%	14.27%	8.10%	6.76%	5.65%
Institutional Class	6.06%	14.36%	8.18%	6.83%	5.69%
Barclays Municipal Bond Index†	4.18%	10.17%	7.13%	6.23%	5.45%

‡ Total returns shown for periods less than one year are not annualized.

Average Annual Total Returns as of 9/30/12 (most recent calendar quarter end)
Unadjusted for Sales Charge	1-Year	3-Year	5-Year	10-Year
Class A	10.89%	6.04%	6.14%	4.81%
Class B	9.95%	5.12%	5.28%	4.00%
Class C	10.05%	5.23%	5.34%	4.02%
Barclays Municipal Bond Index†	8.32%	5.99%	6.06%	5.03%
Adjusted for the Maximum Sales Charge
Class A (max 2.75% load)	7.84%	5.06%	5.55%	4.52%
Class B (max 4.00% CDSC)	6.95%	4.52%	5.11%	4.00%
Class C (max 1.00% CDSC)	10.05%	5.23%	5.34%	4.02%
Barclays Municipal Bond Index†	8.32%	5.99%	6.06%	5.03%
No Sales Charges
Class S	11.06%	6.19%	6.32%	5.04%
Institutional Class	11.17%	6.31%	6.41%	5.07%
Barclays Municipal Bond Index†	8.32%	5.99%	6.06%	5.03%

Performance in the Average Annual Total Returns table(s) above and the Growth of an Assumed $10,000 Investment line graph that follows is historical and does not guarantee future results. Investment return and principal fluctuate, so your shares may be worth more or less when redeemed. Current performance may differ from performance data shown. Please visit www.dws-investments.com for the Fund's most recent month-end performance. Fund performance includes reinvestment of all distributions. Unadjusted returns do not reflect sales charges and would have been lower if they had.

The gross expense ratios of the Fund, as stated in the fee table of the prospectus dated October 1, 2012 are 0.82%, 1.63%, 1.59%, 0.64% and 0.56% for Class A, Class B, Class C, Class S and Institutional Class shares, respectively, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report.

Index returns do not reflect any fees or expenses and it is not possible to invest directly into an index.

Performance figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

A portion of the Fund's distributions may be subject to federal, state and local taxes and the alternative minimum tax.

Growth of an Assumed $10,000 Investment (Adjusted for Maximum Sales Charge)

Yearly periods ended November 30

The Fund's growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 2.75%. This results in a net initial investment of $9,725.

The growth of $10,000 is cumulative.

Performance of other share classes will vary based on the sales charges and the fee structure of those classes.

† The Barclays Municipal Bond Index is an unmanaged, market-value-weighted measure of municipal bonds issued across the United States. Index issues have a credit rating of at least Baa and a maturity of at least two years.

Net Asset Value and Distribution Information
	Class A			Class B			Class C			Class S			Institutional Class
Net Asset Value: 11/30/12	$	9.76		$	9.76		$	9.76		$	9.77		$	9.76
5/31/12	$	9.40		$	9.40		$	9.40		$	9.41		$	9.40
Distribution Information: Six Months as of 11/30/12: Income Dividends	$	.19		$	.15		$	.16		$	.20		$	.20
November Income Dividend	$	.0316		$	.0246		$	.0254		$	.0330		$	.0330
SEC 30-day Yield†† as of 11/30/12		1.74	%		0.94	%		1.02	%		1.97	%		1.96	%
Tax Equivalent Yield†† as of 11/30/12		2.68	%		1.45	%		1.57	%		3.03	%		3.02	%
Current Annualized Distribution Rate†† as of 11/30/12		3.89	%		3.02	%		3.12	%		4.05	%		4.06	%

†† The SEC yield is net investment income per share earned over the month ended November 30, 2012, shown as an annualized percentage of the maximum offering price per share on the last day of the period. The SEC yield is computed in accordance with a standardized method prescribed by the Securities and Exchange Commission. Tax equivalent yield is based on the Fund's yield and a marginal federal income tax rate of 35%. Current annualized distribution rate is the latest monthly dividend shown as a percentage of net asset value on November 30, 2012. Distribution rate simply measures the level of dividends and is not a complete measure of performance. Yields and distribution rates are historical, not guaranteed, and will fluctuate.

Morningstar Rankings — Municipal National Long Funds Category as of 11/30/12
Period	Rank		Number of Fund Classes Tracked	Percentile Ranking (%)
Class A 1-Year	71	of	234	30
3-Year	91	of	216	42
5-Year	34	of	200	17
10-Year	41	of	170	24
Class B 1-Year	107	of	234	46
3-Year	178	of	216	82
5-Year	122	of	200	61
10-Year	123	of	170	72
Class C 1-Year	104	of	234	44
3-Year	171	of	216	79
5-Year	113	of	200	56
10-Year	122	of	170	71
Class S 1-Year	68	of	234	29
3-Year	86	of	216	40
5-Year	18	of	200	9
10-Year	25	of	170	15
Institutional Class 1-Year	63	of	234	27
3-Year	83	of	216	38
5-Year	16	of	200	8
10-Year	22	of	170	13

Source: Morningstar, Inc. Rankings are historical and do not guarantee future results. Rankings are based on total return unadjusted for sales charges with distributions reinvested. If sales charges had been included, rankings might have been less favorable.

Portfolio Management Team

Philip G. Condon, Managing Director

Co-Lead Portfolio Manager of the fund. Joined the fund in 1990.

• Head of US Retail Fixed Income Funds.

• Joined Deutsche Asset Management in 1983.

• BA and MBA, University of Massachusetts at Amherst.

Ashton P. Goodfield, CFA, Managing Director

Co-Lead Portfolio Manager of the fund. Joined the fund in 1998.

• Joined Deutsche Asset Management in 1986.

• BA, Duke University.

Matthew J. Caggiano, CFA, Managing Director

Portfolio Manager of the fund. Joined the fund in 1999.

• Joined Deutsche Asset Management in 1989.

• BS, Pennsylvania State University; MS, Boston College.

Michael J. Generazo, Director

Portfolio Manager of the fund. Joined the fund in 2010.

• Joined Deutsche Asset Management in 1999.

• BS, Bryant College; MBA, Suffolk University.

Portfolio Summary (Unaudited)

Investment Portfolio as of November 30, 2012 (Unaudited)

	Principal Amount ($)		Value ($)
Municipal Bonds and Notes 94.0%
Alabama 0.7%
Alabama, State Public School & College Authority, Capital Improvement, 5.0%, 12/1/2023		35,000,000		41,504,750
Alaska 0.2%
Alaska, State Industrial Development & Export Authority Revenue, Providence Health Services, Series A, 5.5%, 10/1/2041		11,000,000		13,181,630
Arizona 1.6%
Arizona, Salt Verde Financial Corp., Gas Revenue:
5.0%, 12/1/2032		1,600,000		1,924,944
5.0%, 12/1/2037		8,405,000		10,143,490
Arizona, State Health Facilities Authority Revenue, Banner Health System:
Series A, 5.0%, 1/1/2043		7,000,000		8,048,950
Series D, 5.375%, 1/1/2032		12,000,000		13,598,040
Arizona, Water Infrastructure Finance Authority Revenue, Water Quality, Series A, 5.0%, 10/1/2030		6,250,000		7,837,812
Phoenix, AZ, Civic Improvement Corp., Airport Revenue:
Series A, 5.0%, 7/1/2040		22,775,000		25,935,487
Series A, 5.25%, 7/1/2033		20,885,000		24,445,475
				91,934,198
Arkansas 0.2%
North Little Rock, AR, Electric Revenue, Series A, ETM, 6.5%, 7/1/2015, INS: NATL		8,335,000		9,052,644
California 15.6%
Banning, CA, Water & Sewer Revenue, 1989 Water System Improvement Project, ETM, 8.0%, 1/1/2019, INS: AMBAC		585,000		685,749
Banning, CA, Water & Sewer Revenue, Water System Reference & Improvement Project, ETM, 8.0%, 1/1/2019, INS: AMBAC		320,000		388,640
California, Bay Area Toll Authority, Toll Bridge Revenue, San Francisco Bay Area:
Series F-1, 5.5%, 4/1/2043		13,000,000		15,237,690
Series F-1, 5.625%, 4/1/2044		11,500,000		13,715,935
California, Educational Facilities Authority Revenue, University of Southern California, Series A, 5.0%, 10/1/2038		6,925,000		8,216,928
California, Golden State Tobacco Securitization Corp., Tobacco Settlement Revenue, Series A, 5.0%, 6/1/2045, INS: AGC		10,275,000		10,870,128
California, Health Facilities Financing Authority Revenue, Adventist Health System, Series A, 5.75%, 9/1/2039		5,000,000		5,883,050
California, Health Facilities Financing Authority Revenue, Catholic Healthcare West:
Series A, 6.0%, 7/1/2034		10,000,000		12,082,600
Series A, 6.0%, 7/1/2039		7,500,000		9,041,775
California, Infrastructure & Economic Development Bank Revenue, California Independent Systems Operator Corp., Series A, 6.25%, 2/1/2039		7,800,000		8,558,706
California, M-S-R Energy Authority, Series B, 7.0%, 11/1/2034		15,315,000		22,642,155
California, Port of Oakland, Series P, AMT, 5.0%, 5/1/2033		7,590,000		8,756,659
California, State General Obligation:
5.0%, 2/1/2032		35,000,000		41,702,500
5.0%, 9/1/2032		10,000,000		11,239,200
5.0%, 2/1/2033		8,000,000		9,474,720
5.25%, 4/1/2035		15,340,000		18,485,160
6.0%, 4/1/2038		22,915,000		28,474,637
6.25%, 11/1/2034		20,655,000		26,224,414
California, State General Obligation, Various Purposes:
5.0%, 6/1/2023, INS: AGMC		25,000,000		29,366,750
5.0%, 12/1/2031, INS: NATL		1,045,000		1,102,883
5.125%, 11/1/2024		5,000,000		5,192,850
5.25%, 9/1/2026		18,765,000		22,993,693
5.25%, 9/1/2030		5,000,000		6,103,300
5.25%, 10/1/2032		25,000,000		30,364,250
6.0%, 11/1/2039		50,000,000		63,177,000
6.5%, 4/1/2033		58,440,000		75,159,684
California, State Public Works Board, Lease Revenue, Capital Projects, Series I-1, 6.375%, 11/1/2034		10,000,000		12,344,200
California, State Public Works Board, Lease Revenue, Department of Corrections, Series C, Prerefunded, 5.5%, 6/1/2021		2,500,000		2,631,425
California, State Public Works Board, Lease Revenue, Department of General Services, Buildings 8 & 9, Series A, 6.125%, 4/1/2029		2,000,000		2,466,500
California, State Public Works Board, Lease Revenue, Department of Mental Health:
Series A, 5.5%, 6/1/2021		5,275,000		5,656,646
Series A, 5.5%, 6/1/2022		1,400,000		1,488,872
California, State Revenue Lease, Public Works Board, Department of Corrections:
Series C, 5.0%, 6/1/2025		2,500,000		2,594,850
Series C, Prerefunded, 5.5%, 6/1/2020		5,000,000		5,262,850
California, State University Revenue, Series A, 5.25%, 11/1/2038		10,000,000		11,522,100
California, Statewide Communities Development Authority Revenue, Kaiser Permanente, Kaiser Foundation Hospitals, Series A, 5.0%, 4/1/2042		5,295,000		6,167,934
East Bay, CA, Municipal Utility District, Wastewater Systems Revenue, Series A, 5.0%, 6/1/2037, INS: AMBAC		13,085,000		15,074,313
Foothill, CA, Eastern Corridor Agency, Toll Road Revenue:
Series A, ETM, Zero Coupon, 1/1/2015		10,000,000		9,905,600
Series A, ETM, Zero Coupon, 1/1/2017		5,000,000		4,872,150
Series A, ETM, Zero Coupon, 1/1/2018		21,890,000		20,992,291
Irvine, CA, Unified School District Special Tax, Community Facilities District, Series 1-B, 0.18%**, 9/1/2051, LOC: Bank of America NA		2,500,000		2,500,000
Los Angeles, CA, Community College District, Election of 2008, Series C, 5.25%, 8/1/2039		12,000,000		15,018,360
Los Angeles, CA, Department of Airports Revenue, Series A, 5.25%, 5/15/2039		5,000,000		5,752,550
Los Angeles, CA, Department of Airports Revenue, Los Angeles International Airport, Series A, 5.0%, 5/15/2040		25,000,000		28,906,250
Murrieta Valley, CA, School District General Obligation, Unified School District, Series A, Zero Coupon, 9/1/2014, INS: FGIC, NATL		4,235,000		4,178,929
Oakland, CA, Special Assessment Revenue, Oakland Convention Centers, 5.5%, 10/1/2014, INS: AMBAC		2,000,000		2,103,620
Orange County, CA, Airport Revenue:
Series A, 5.25%, 7/1/2039		16,000,000		18,482,880
Series B, 5.25%, 7/1/2039		12,000,000		13,862,160
Roseville, CA, School District General Obligation, Junior High, Series B, Zero Coupon, 8/1/2015, INS: FGIC, NATL		1,000,000		977,610
Sacramento, CA, Municipal Utility District, Electric Revenue:
Series U, 5.0%, 8/15/2026, INS: AGMC		10,455,000		12,156,551
Series U, 5.0%, 8/15/2028, INS: AGMC		8,175,000		9,455,695
San Diego County, CA, Regional Airport Authority Revenue, Series A, 5.0%, 7/1/2034		7,000,000		7,930,720
San Diego, CA, Community College District General Obligation, Election of 2002, 5.25%, 8/1/2033		5,000,000		6,169,600
San Diego, CA, Community College District, Election of 2006, 5.0%, 8/1/2036		6,100,000		7,232,160
San Diego, CA, School District General Obligation, Series A, Zero Coupon, 7/1/2014, INS: FGIC, NATL		1,000,000		989,680
San Francisco, CA, City & County Airports Commission, International Airport Revenue:
Series 32-G, 5.0%, 5/1/2026, INS: FGIC, NATL		8,565,000		9,646,588
Series F, 5.0%, 5/1/2035		27,500,000		31,418,475
Series E, 6.0%, 5/1/2039		35,000,000		42,165,200
San Francisco, CA, City & County Certificates of Participation, Multiple Capital Improvement Projects, Series A, 5.25%, 4/1/2031		7,860,000		9,051,890
San Joaquin County, CA, County General Obligation Lease, Facilities Project, 5.5%, 11/15/2013, INS: NATL		1,390,000		1,422,401
San Joaquin Hills, CA, Transportation/Tolls Revenue, Transportation Corridor Agency, Toll Road Revenue:
Series A, Zero Coupon, 1/15/2013, INS: NATL		35,295,000		35,199,351
Series A, Zero Coupon, 1/15/2014, INS: NATL		14,905,000		14,482,890
Walnut, CA, Energy Center Authority Revenue, Series A, 5.0%, 1/1/2040		10,000,000		11,156,400
				876,380,747
Colorado 4.1%
Colorado, E-470 Public Highway Authority Revenue:
Series B, Zero Coupon, 9/1/2016, INS: NATL		5,000,000		4,518,750
Series A-1, 5.5%, 9/1/2024, INS: NATL		4,000,000		4,378,880
Colorado, Health Facilities Authority Revenue, Covenant Retirement Communities, Inc., 5.0%, 12/1/2035		15,000,000		15,590,400
Colorado, Public Energy Authority, Natural Gas Purchase Revenue, 6.5%, 11/15/2038, GTY: Merrill Lynch & Co., Inc.		30,000,000		43,152,900
Colorado, State Building Excellent Schools Today, Certificates of Participation, Series G, 5.0%, 3/15/2032		8,630,000		10,098,912
Colorado, Transportation/Tolls Revenue:
Series B, Zero Coupon, 9/1/2014, INS: NATL		6,380,000		6,133,349
Series B, Zero Coupon, 9/1/2015, INS: NATL		17,120,000		15,994,703
Series B, Zero Coupon, 9/1/2017, INS: NATL		8,000,000		6,953,360
Series B, Zero Coupon, 9/1/2018, INS: NATL		20,560,000		17,132,854
Series B, Zero Coupon, 9/1/2019, INS: NATL		36,500,000		28,981,730
Series B, Zero Coupon, 9/1/2020, INS: NATL		7,000,000		5,270,160
Series A, 5.75%, 9/1/2014, INS: NATL		14,700,000		15,644,328
Douglas County, CO, School District General Obligation, 7.0%, 12/15/2013, INS: NATL		2,500,000		2,668,025
University of Colorado, Enterprise Revenue, 5.25%, 6/1/2036		11,500,000		13,992,510
University of Colorado, Hospital Authority Revenue, Series A, 5.0%, 11/15/2042		36,010,000		41,120,179
				231,631,040
Connecticut 1.2%
Connecticut, Harbor Point Infrastructure Improvement District, Special Obligation Revenue, Harbor Point Project, Series A, 7.875%, 4/1/2039		13,000,000		15,028,520
Connecticut, State Health & Educational Facilities Authority Revenue, Hartford Healthcare, Series A, 5.0%, 7/1/2041		20,000,000		22,184,200
Connecticut, State Health & Educational Facilities Authority Revenue, Stamford Hospital, Series J, 5.125%, 7/1/2035		18,000,000		20,434,680
Connecticut, State Health & Educational Facilities Authority Revenue, Yale University, Series V-2, 0.15%**, 7/1/2036		7,620,000		7,620,000
				65,267,400
District of Columbia 0.8%
District of Columbia, Income Tax Secured Revenue, Series G, 5.0%, 12/1/2036		27,475,000		33,043,083
District of Columbia, National Public Radio Revenue, Series A, 5.0%, 4/1/2035		5,000,000		5,680,350
District of Columbia, Water & Sewer Revenue, Public Utility Revenue, 5.5%, 10/1/2023, INS: AGMC		5,000,000		6,545,750
				45,269,183
Florida 5.6%
Broward County, FL, Airport Systems Revenue, Series Q-1, 5.0%, 10/1/2037		39,000,000		45,257,160
Clearwater, FL, Water & Sewer Revenue, Series A, 5.25%, 12/1/2039		2,000,000		2,335,240
Florida, Jacksonville Electric Authority, Water & Sewer Revenue, Series A, 5.0%, 10/1/2032		5,000,000		5,991,350
Florida, Village Center Community Development District, Utility Revenue, ETM, 6.0%, 11/1/2018, INS: FGIC		1,250,000		1,493,938
Fort Pierce, FL, Utilities Authority Revenue, Series B, Zero Coupon, 10/1/2018, INS: AMBAC		2,000,000		1,775,040
Hillsborough County, FL, Industrial Development Authority Revenue, University Community Hospital, ETM, 6.5%, 8/15/2019, INS: NATL		1,000,000		1,238,060
Lee County, FL, Airport Revenue, Series A, AMT, 5.375%, 10/1/2032		1,750,000		1,985,935
Marco Island, FL, Utility Systems Revenue:
Series A, 5.0%, 10/1/2034		1,000,000		1,148,110
Series A, 5.0%, 10/1/2040		1,000,000		1,139,830
Melbourne, FL, Water & Sewer Revenue, ETM, Zero Coupon, 10/1/2016, INS: FGIC		1,350,000		1,314,644
Miami-Dade County, FL, Aviation Revenue:
Series B, 5.0%, 10/1/2035, INS: AGMC		15,000,000		17,244,300
Series A, 5.5%, 10/1/2041		30,000,000		34,996,500
Miami-Dade County, FL, Aviation Revenue, Miami International Airport:
Series C, AMT, 5.25%, 10/1/2022, INS: AGMC		20,000,000		22,533,800
Series A-1, 5.375%, 10/1/2035		1,000,000		1,170,800
Series A-1, 5.375%, 10/1/2041		19,290,000		22,540,751
Miami-Dade County, FL, Double Barreled Aviation, 5.0%, 7/1/2041		6,700,000		7,659,172
Miami-Dade County, FL, Sales & Special Tax Revenue:
Series A, Zero Coupon, 10/1/2014, INS: NATL		2,195,000		2,036,433
Series A, Zero Coupon, 10/1/2022, INS: NATL		7,000,000		4,168,430
Miami-Dade County, FL, Transit Sales Surtax Revenue, 5.0%, 7/1/2037		16,500,000		19,223,655
Miami-Dade County, FL, Water & Sewer Systems Revenue, 5.0%, 10/1/2034		17,800,000		20,584,988
North Brevard County, FL, Hospital District Revenue, Parrish Medical Center Project, 5.75%, 10/1/2043		10,000,000		11,282,000
Orange County, FL, Health Facilities Authority Revenue:
Series 2006-A, 6.25%, 10/1/2016, INS: NATL		1,100,000		1,220,780
Series 2006-A, ETM, 6.25%, 10/1/2016, INS: NATL		70,000		80,964
Orange County, FL, Health Facilities Authority Revenue, Orlando Regional Healthcare System:
Series B, 5.25%, 12/1/2029, INS: AGMC		6,500,000		7,339,735
Series A, 6.25%, 10/1/2018, INS: NATL		500,000		616,955
Series C, 6.25%, 10/1/2021, INS: NATL		6,000,000		7,755,480
Orange County, FL, Health Facilities Authority, Orlando Regional Facilities, Series A, ETM, 6.25%, 10/1/2016, INS: NATL		2,830,000		3,273,263
Orlando & Orange County, FL, Expressway Authority Revenue:
Series C, 5.0%, 7/1/2035		16,215,000		18,571,850
Series A, 5.0%, 7/1/2040		11,895,000		13,511,055
Palm Beach County, FL, Airport Systems Revenue:
5.75%, 10/1/2013, INS: NATL		3,770,000		3,918,915
5.75%, 10/1/2014, INS: NATL		755,000		817,506
Palm Beach County, FL, Criminal Justice Facilities Revenue, 7.2%, 6/1/2015, INS: FGIC, NATL		110,000		125,819
Port St. Lucie, FL, Utility System Revenue:
5.0%, 9/1/2035, INS: AGC		2,600,000		3,037,970
5.25%, 9/1/2035, INS: AGC		3,000,000		3,546,030
Sunrise, FL, Water & Sewer Revenue, Utility Systems, ETM, 5.5%, 10/1/2018, INS: AMBAC		12,500,000		14,837,625
Tallahassee, FL, Energy System Revenue, 5.5%, 10/1/2016, INS: AMBAC		1,005,000		1,177,046
Tampa, FL, Sports Authority Revenue, Sales Tax-Tampa Bay Arena Project, 5.75%, 10/1/2020, INS: NATL		2,075,000		2,322,713
Tampa, FL, Utility Tax Revenue, Zero Coupon, 10/1/2014, INS: AMBAC		3,165,000		3,106,701
				312,380,543
Georgia 5.1%
Atlanta, GA, Airport Revenue:
Series A, 5.0%, 1/1/2035		2,470,000		2,807,649
Series B, 5.0%, 1/1/2037		720,000		839,686
Atlanta, GA, Metropolitan Rapid Transit Authority, Sales Tax Revenue, 5.0%, 7/1/2039		5,000,000		5,882,400
Atlanta, GA, Water & Sewer Revenue, Series A, 5.5%, 11/1/2019, INS: FGIC, NATL		13,000,000		16,577,080
Atlanta, GA, Water & Wastewater Revenue, Series B, 5.375%, 11/1/2039, INS: AGMC		40,000,000		46,724,800
Burke County, GA, Development Authority Pollution Control Revenue, Oglethorpe Power Corp. Vogtle Project:
Series A, 5.3%, 1/1/2033, INS: AGMC		10,000,000		11,548,900
Series B, 5.5%, 1/1/2033		4,000,000		4,425,600
Burke County, GA, Development Authority, Georgia Power Co., Plant Vogtle Project, AMT, 0.21%**, 11/1/2052		11,000,000		11,000,000
De Kalb County, GA, Water & Sewer Revenue:
Series A, 5.25%, 10/1/2032		2,180,000		2,632,415
Series A, 5.25%, 10/1/2033		3,635,000		4,367,125
Series A, 5.25%, 10/1/2036		11,115,000		13,161,494
Series A, 5.25%, 10/1/2041		13,000,000		15,338,050
Gainesville & Hall County, GA, Hospital Authority Revenue, Anticipation Certificates, Northeast Georgia Healthcare:
Series A, 5.375%, 2/15/2040		8,225,000		9,331,263
Series A, 5.5%, 2/15/2045		20,000,000		22,890,800
Georgia, Main Street Natural Gas, Inc., Gas Project Revenue:
Series A, 5.0%, 3/15/2019		17,440,000		20,194,822
Series B, 5.0%, 3/15/2019		5,000,000		5,783,800
Series A, 5.0%, 3/15/2020		2,700,000		3,127,275
Series B, 5.0%, 3/15/2020		5,000,000		5,824,400
Series A, 5.0%, 3/15/2022		17,340,000		20,433,456
Series A, 5.5%, 9/15/2023		5,000,000		6,163,250
Series A, 5.5%, 9/15/2024		4,635,000		5,744,295
Series A, 5.5%, 9/15/2027		5,000,000		6,233,800
Series A, 5.5%, 9/15/2028		5,000,000		6,226,350
Georgia, Medical Center Hospital Authority Revenue, Anticipation Certificates, Columbus Regional Healthcare Systems, 6.5%, 8/1/2038, INS: AGC		18,700,000		22,136,125
Georgia, Municipal Electric Authority Power Revenue:
Series 2005-Y, 6.4%, 1/1/2013, INS: AMBAC		1,045,000		1,050,476
Series Y, ETM, 6.4%, 1/1/2013, INS: AMBAC		75,000		75,401
Series W, 6.6%, 1/1/2018, INS: NATL		11,035,000		12,204,710
Georgia, State Municipal Electric Authority, Series GG, 5.0%, 1/1/2039		5,695,000		6,666,282
Georgia, Water & Sewer Revenue, Municipal Electric Authority Power Revenue, Series W, ETM, 6.6%, 1/1/2018, INS: NATL		190,000		223,803
				289,615,507
Hawaii 0.7%
Hawaii, State Airports Systems Revenue, Series A, 5.0%, 7/1/2039		16,800,000		19,058,088
Hawaii, State Department of Budget & Finance, Special Purpose Revenue, Hawaiian Electric Co., Inc., 6.5%, 7/1/2039, GTY: Hawaiian Electric Co., Inc.		6,000,000		7,108,500
Honolulu City & County, HI, Wastewater Systems Revenue, Series A, 5.25%, 7/1/2036		10,285,000		12,515,817
				38,682,405
Idaho 0.2%
Idaho, Health Facilities Authority Revenue, St. Luke's Regional Medical Center, 6.75%, 11/1/2037		10,060,000		12,125,117
Illinois 9.6%
Chicago, IL, Core City General Obligation, Zero Coupon, 1/1/2017, INS: FGIC, NATL		20,000,000		18,524,000
Chicago, IL, General Obligation:
Series B, 5.125%, 1/1/2015, INS: AMBAC		1,470,000		1,565,183
Series B, Prerefunded, 5.125%, 1/1/2015, INS: AMBAC		490,000		515,480
Series A, 5.25%, 1/1/2035		10,125,000		11,690,730
Series A, 5.375%, 1/1/2013, INS: NATL		2,135,000		2,144,522
Series A, ETM, 5.375%, 1/1/2013, INS: NATL		3,470,000		3,485,476
Chicago, IL, O'Hare International Airport Revenue:
Series A-2, AMT, 5.75%, 1/1/2019, INS: AGMC		12,975,000		13,574,575
Series C, 6.5%, 1/1/2041		26,700,000		35,034,405
Chicago, IL, O'Hare International Airport Revenue, Third Lien:
Series A, 5.75%, 1/1/2039		13,650,000		16,496,025
Series B, 6.0%, 1/1/2041		25,000,000		31,608,000
Chicago, IL, Sales & Special Tax Revenue, 5.375%, 1/1/2014, INS: AMBAC		1,105,000		1,131,973
Chicago, IL, School District General Obligation Lease, Board of Education:
Series A, 6.0%, 1/1/2016, INS: NATL		11,025,000		12,657,803
Series A, 6.0%, 1/1/2020, INS: NATL		46,340,000		54,994,458
Series A, 6.25%, 1/1/2015, INS: NATL		22,180,000		23,268,594
Chicago, IL, Water & Sewer Revenue, Zero Coupon, 11/1/2018, INS: AMBAC		5,165,000		4,470,359
Chicago, IL, Water Revenue, 5.0%, 11/1/2023, INS: AGMC		10,000,000		12,075,400
Cook County, IL, County General Obligation, 6.5%, 11/15/2014, INS: FGIC, NATL		18,560,000		20,638,349
Cook County, IL, Forest Preservation District, Series C, 5.0%, 12/15/2037		3,155,000		3,673,745
Illinois, Finance Authority Revenue, Advocate Health Care Network:
Series B, 5.375%, 4/1/2044		5,500,000		6,185,905
Series A, 5.5%, 4/1/2044		5,500,000		6,238,595
Series D, 6.5%, 11/1/2038		4,085,000		5,035,702
Illinois, Finance Authority Revenue, Elmhurst Memorial Healthcare, Series A, 5.625%, 1/1/2037		8,000,000		8,874,000
Illinois, Finance Authority Revenue, Memorial Health Systems:
5.5%, 4/1/2034		12,100,000		13,717,528
5.5%, 4/1/2039		4,800,000		5,409,312
Illinois, Finance Authority Revenue, Northwest Community Hospital, Series A, 5.5%, 7/1/2038		22,990,000		25,606,032
Illinois, Higher Education Revenue, Zero Coupon, 4/1/2015, INS: NATL		3,300,000		3,220,239
Illinois, Hospital & Healthcare Revenue, Health Facilities Authority:
6.25%, 8/15/2013, INS: NATL		655,000		669,417
Series A, 6.25%, 1/1/2015, INS: AMBAC		5,050,000		5,297,854
Illinois, Metropolitan Pier & Exposition Authority, Dedicated State Tax Revenue, McCormick Capital Appreciation:
Zero Coupon, 6/15/2013, INS: NATL		4,045,000		4,023,885
ETM, Zero Coupon, 6/15/2013, INS: NATL		3,520,000		3,512,714
Illinois, Metropolitan Pier & Exposition Authority, Dedicated State Tax Revenue, McCormick Place Expansion:
Series A, Zero Coupon, 6/15/2016, INS: FGIC, NATL		7,035,000		6,568,650
Series A, ETM, Zero Coupon, 6/15/2016, INS: FGIC, NATL		2,965,000		2,866,325
Illinois, Municipal Electric Agency Power Supply:
Series A, 5.25%, 2/1/2023, INS: FGIC, NATL		3,500,000		4,054,295
Series A, 5.25%, 2/1/2024, INS: FGIC, NATL		2,500,000		2,895,925
Illinois, Pollution Control Revenue, Development Finance Authority, 5.85%, 1/15/2014, INS: AMBAC		5,000,000		5,241,700
Illinois, Project Revenue, Zero Coupon, 1/1/2014, INS: AGMC		17,975,000		17,707,532
Illinois, Railsplitter Tobacco Settlement Authority, 6.0%, 6/1/2028		17,315,000		21,341,603
Illinois, Regional Transportation Authority:
Series B, 5.75%, 6/1/2033, INS: NATL		7,000,000		9,623,530
Series A, 6.7%, 11/1/2021, INS: FGIC, NATL		23,910,000		29,024,349
Illinois, Sales & Special Tax Revenue:
6.25%, 12/15/2020, INS: AMBAC		6,380,000		7,300,187
Series P, 6.5%, 6/15/2013		405,000		416,615
Illinois, Special Assessment Revenue, Metropolitan Pier and Exposition Authority, Series A, Zero Coupon, 12/15/2018, INS: NATL		6,660,000		5,697,630
Illinois, State Finance Authority Revenue, Ascension Health Credit Group:
Series A, 5.0%, 11/15/2032		2,435,000		2,857,862
Series A, 5.0%, 11/15/2037		3,440,000		3,960,850
Illinois, State Finance Authority Revenue, OSF Healthcare Systems, Series A, 5.0%, 5/15/2041		13,155,000		14,647,961
Kane Cook & Du Page Counties, IL, School District General Obligation, Series B, Zero Coupon, 1/1/2013, INS: AGMC		1,095,000		1,094,474
Lake Cook Kane & McHenry Counties, IL, School District General Obligation, 6.3%, 12/1/2017, INS: AGMC		1,885,000		2,382,904
Lake County, IL, Higher Education Revenue, District No. 117:
Series B, Zero Coupon, 12/1/2013, INS: FGIC, NATL		5,880,000		5,792,153
Series B, Zero Coupon, 12/1/2014, INS: FGIC, NATL		5,985,000		5,766,907
Springfield, IL, Water Revenue, 5.0%, 3/1/2037		3,640,000		4,306,557
Will County, IL, County General Obligation:
Series B, Zero Coupon, 12/1/2012, INS: FGIC, NATL		2,480,000		2,479,975
Series B, Zero Coupon, 12/1/2013, INS: FGIC, NATL		12,030,000		11,977,429
Series B, Zero Coupon, 12/1/2014, INS: FGIC, NATL		10,255,000		10,122,198
Will County, IL, School District General Obligation, Community Unit School District No. 365-U, Series B, ETM, Zero Coupon, 11/1/2015, INS: AGMC		8,000,000		7,844,160
				541,312,031
Indiana 1.3%
Indiana, Electric Revenue, Municipal Power Agency, Series B, 5.5%, 1/1/2016, INS: NATL		10,160,000		10,963,148
Indiana, Finance Authority Hospital Revenue, Deaconess Hospital Obligation, Series A, 6.75%, 3/1/2039		5,230,000		6,285,780
Indiana, Hospital & Healthcare Revenue, Health Facilities Finance Authority, Greenwood Village South Project, 5.625%, 5/15/2028		2,100,000		2,105,922
Indiana, Hospital & Healthcare Revenue, Health Facilities Financing Authority:
ETM, 6.0%, 7/1/2013, INS: NATL		1,620,000		1,671,470
ETM, 6.0%, 7/1/2014, INS: NATL		1,720,000		1,862,205
ETM, 6.0%, 7/1/2015, INS: NATL		1,825,000		2,068,845
6.0%, 7/1/2016, INS: NATL		465,000		523,971
ETM, 6.0%, 7/1/2016, INS: NATL		1,470,000		1,755,533
6.0%, 7/1/2017, INS: NATL		490,000		563,289
ETM, 6.0%, 7/1/2017, INS: NATL		1,560,000		1,940,094
6.0%, 7/1/2018, INS: NATL		520,000		611,213
ETM, 6.0%, 7/1/2018, INS: NATL		1,655,000		2,128,926
Indiana, State Finance Authority Revenue, Community Foundation of Northwest Indiana, 5.0%, 3/1/2041		14,145,000		15,720,329
Indiana, State Finance Authority, Wastewater Utility Revenue, First Lien, Series A, 5.25%, 10/1/2038		8,000,000		9,500,480
Indiana, Transportation/Tolls Revenue, Series A, 7.25%, 6/1/2015		1,960,000		2,129,912
St. Joseph County, IN, Educational Facilities Revenue, Notre Dame du Lac Project, 5.0%, 3/1/2036		10,000,000		11,632,200
				71,463,317
Kansas 0.5%
Kansas, Pollution Control Revenue, Development Financing Authority, Series II, 5.5%, 11/1/2017		1,000,000		1,234,060
Kansas, State Development Finance Authority Hospital Revenue, Adventist Health System:
Series A, 5.0%, 11/15/2032		13,000,000		15,427,230
Series A, 5.0%, 11/15/2034		8,465,000		9,991,409
Wichita, KS, Hospital Revenue, Facilities Improvement, Series III-A, 5.0%, 11/15/2034		3,590,000		4,024,677
				30,677,376
Kentucky 1.5%
Kentucky, Economic Development Finance Authority, Health Systems Revenue, Norton Healthcare:
Series C, 5.7%, 10/1/2013, INS: NATL		5,495,000		5,724,526
Series C, ETM, 5.7%, 10/1/2013, INS: NATL		2,750,000		2,865,692
Series C, 5.8%, 10/1/2014, INS: NATL		3,420,000		3,586,520
Series C, Prerefunded, 5.8%, 10/1/2014, INS: NATL		1,710,000		1,805,298
Series C, 5.85%, 10/1/2015, INS: NATL		3,490,000		3,656,822
Series C, Prerefunded, 5.85%, 10/1/2015, INS: NATL		1,745,000		1,842,982
Series C, 5.9%, 10/1/2016, INS: NATL		4,330,000		4,532,254
Series C, Prerefunded, 5.9%, 10/1/2016, INS: NATL		2,170,000		2,292,757
Kentucky, Economic Development Finance Authority, Hospital Facilities Revenue, Owensboro Medical Health Systems, Series A, 6.5%, 3/1/2045		11,000,000		13,391,950
Kentucky, Economic Development Finance Authority, Louisville Arena Project Revenue, Series A-1, 6.0%, 12/1/2038, INS: AGC		4,500,000		5,062,275
Louisville & Jefferson County, KY, Metropolitan Government Health Systems Revenue, Norton Healthcare, Inc., 5.0%, 10/1/2030		15,000,000		16,092,900
Louisville & Jefferson County, KY, Metropolitan Government Revenue, Catholic Health Initiatives, Series A, 5.0%, 12/1/2035		20,770,000		24,061,630
				84,915,606
Louisiana 0.6%
East Baton Rouge Parish, LA, Pollution Control Revenue, Exxon Mobil Project, 0.16%**, 3/1/2022		1,200,000		1,200,000
East Baton Rouge, LA, Sewer Commission Revenue, Series A, 5.25%, 2/1/2039		10,000,000		11,880,400
Louisiana, Public Facilities Authority, Hospital Revenue, Lafayette General Medical Center, 5.5%, 11/1/2040		5,000,000		5,650,050
Louisiana, St. John Baptist Parish Revenue, Marathon Oil Corp., Series A, 5.125%, 6/1/2037		12,000,000		12,951,120
				31,681,570
Maine 0.2%
Maine, Health & Higher Educational Facilities Authority Revenue, Series A, 5.0%, 7/1/2040		9,650,000		10,870,339
Maryland 0.3%
Maryland, State Economic Development Corp. Revenue, Senior Lien Project, Chesapeake Bay:
Series A, 5.0%, 12/1/2016		860,000		785,911
Series A, 5.0%, 12/1/2031		20,000,000		14,038,400
Maryland, State Health & Higher Educational Facilities Authority Revenue, Anne Arundel Health Systems, Series A, 6.75%, 7/1/2039		3,400,000		4,194,478
				19,018,789
Massachusetts 4.5%
Massachusetts, Bay Transportation Authority Revenue, Series B, 6.2%, 3/1/2016		10,000,000		10,817,200
Massachusetts, Higher Education Revenue, College Building Authority Project, Series A, 7.5%, 5/1/2014		3,800,000		4,027,620
Massachusetts, Industrial Development Revenue, Development Finance Agency, Series A, 7.1%, 7/1/2032		4,310,000		4,312,845
Massachusetts, Port Authority Revenue, ETM, 13.0%, 7/1/2013		235,000		250,895
Massachusetts, Project Revenue, Prerefunded, 9.2%, 12/15/2031, GTY: Harvard Pilgrim HealthCare, Inc.		17,000,000		17,403,240
Massachusetts, Project Revenue, Health & Educational Facilities Authority, Series B, Prerefunded, 9.15%, 12/15/2023, GTY: Harvard Pilgrim HealthCare, Inc.		3,000,000		3,071,100
Massachusetts, Sales & Special Tax Revenue, Federal Highway Grant, Series A, ETM, Zero Coupon, 12/15/2014		27,680,000		27,419,808
Massachusetts, State College Building Authority Revenue:
Series B, 5.0%, 5/1/2037		4,500,000		5,382,540
Series B, 5.0%, 5/1/2043		4,125,000		4,915,020
Massachusetts, State Department of Transportation, Metropolitan Highway Systems Revenue, Series B, 5.0%, 1/1/2032		28,800,000		33,256,224
Massachusetts, State Development Finance Agency Revenue, Linden Ponds, Inc. Facility:
Series B, 11/15/2056*		314,524		1,667
Series A-2, 5.5%, 11/15/2046		63,235		40,285
Series A-1, 6.25%, 11/15/2031		1,182,967		952,300
Massachusetts, State Development Finance Agency Revenue, Partners Healthcare System, Inc.:
Series K-1, 0.15%**, 7/1/2046, SPA: Wells Fargo Bank NA		1,000,000		1,000,000
Series L, 5.0%, 7/1/2036		13,680,000		15,956,762
Massachusetts, State Development Finance Agency, Resource Recovery Revenue, SEMASS Partnership:
Series A, 5.625%, 1/1/2015, INS: NATL		4,000,000		4,018,240
Series A, 5.625%, 1/1/2016, INS: NATL		2,750,000		2,762,540
Massachusetts, State General Obligation, Series A, 0.18%**, 3/1/2026, SPA: Wells Fargo Bank NA		4,115,000		4,115,000
Massachusetts, State Health & Educational Facilities Authority Revenue, Massachusetts Institute of Technology, Series K, 5.5%, 7/1/2022		9,000,000		12,381,750
Massachusetts, State Health & Educational Facilities Authority Revenue, Suffolk University, Series A, 5.75%, 7/1/2039		14,285,000		16,273,044
Massachusetts, State Port Authority Special Facilities Revenue, Delta Air Lines, Inc. Project:
Series A, AMT, 5.5%, 1/1/2014, INS: AMBAC		3,000,000		3,006,960
Series A, AMT, 5.5%, 1/1/2015, INS: AMBAC		3,000,000		3,006,840
Series A, AMT, 5.5%, 1/1/2016, INS: AMBAC		3,000,000		3,006,690
Massachusetts, State School Building Authority, Sales Tax Revenue, Series B, 5.25%, 10/15/2035		12,000,000		14,832,360
Massachusetts, State Water Resource Authority:
Series B, 5.0%, 8/1/2041		5,500,000		6,506,775
Series J, 5.5%, 8/1/2021, INS: AGMC		5,685,000		7,572,249
Massachusetts, Transportation/Tolls Revenue, Turnpike Authority, Series C, Zero Coupon, 1/1/2018, INS: NATL		10,000,000		9,237,700
Massachusetts, Water & Sewer Revenue, Water Authority, Series J, 5.5%, 8/1/2020, INS: AGMC		14,315,000		18,766,679
Massachusetts, Water & Sewer Revenue, Water Resource Authority, Series A, ETM, 6.5%, 7/15/2019 (a)		13,710,000		16,380,160
				250,674,493
Michigan 2.6%
Detroit, MI, School District General Obligation, Series C, 5.25%, 5/1/2014, INS: FGIC		1,000,000		1,060,360
Detroit, MI, Sewer Disposal Revenue, Series B, 7.5%, 7/1/2033, INS: AGMC		10,000,000		12,770,500
Detroit, MI, State General Obligation:
Series A-1, 5.375%, 4/1/2016, INS: NATL		2,760,000		2,721,774
Series A-1, 5.375%, 4/1/2018, INS: NATL		3,000,000		2,937,240
Detroit, MI, Water & Sewer Revenue, Series A, Zero Coupon, 7/1/2015, INS: FGIC, NATL		8,710,000		8,183,655
Detroit, MI, Water Supply Systems Revenue, Series A, 5.75%, 7/1/2037		11,410,000		12,968,378
Michigan, State Building Authority Revenue, Facilities Program:
Series H, 5.125%, 10/15/2033		9,755,000		11,128,114
Series I, 6.0%, 10/15/2038		9,000,000		10,949,670
Michigan, State Grant Anticipation Bonds, 5.25%, 9/15/2023, INS: AGMC		7,500,000		8,576,100
Michigan, State Hospital Finance Authority Revenue, MidMichigan Health Obligation Group, Series A, 6.125%, 6/1/2039		4,000,000		4,737,400
Michigan, State Hospital Finance Authority Revenue, Trinity Health, Series A, 6.5%, 12/1/2033		10,000,000		12,358,100
Michigan, State Hospital Finance Authority, Trinity Health Credit Group, Series C, 5.0%, 12/1/2034		27,000,000		31,230,630
Royal Oak, MI, Hospital Finance Authority Revenue, William Beaumont Hospital, 8.25%, 9/1/2039		7,200,000		9,393,840
Tawas City, MI, Hospital Finance Authority, St. Joseph Health Services, Series A, ETM, 5.6%, 2/15/2013		290,000		291,351
Wayne County, MI, Airport Authority Revenue, Detroit Metropolitan Airport:
Series A, 5.0%, 12/1/2037		9,255,000		10,564,952
Series A, 5.0%, 12/1/2042		7,095,000		8,009,049
				147,881,113
Minnesota 0.5%
Minneapolis, MN, Health Care Systems Revenue, Fairview Health Services, Series A, 6.75%, 11/15/2032		6,440,000		7,868,521
Minnesota, Tobacco Securitization Authority, Tobacco Settlement Revenue, Series B, 5.25%, 3/1/2031		9,000,000		10,134,090
University of Minnesota, Higher Education Revenue:
Series A, ETM, 5.75%, 7/1/2017		3,240,000		3,940,326
Series A, ETM, 5.75%, 7/1/2018 (a)		6,760,000		8,485,557
				30,428,494
Mississippi 0.8%
Mississippi, Development Bank Special Obligation, Department of Corrections, Series C, 5.25%, 8/1/2027		13,890,000		16,471,040
Mississippi, State Business Finance Commission, Gulf Opportunity Zone, Chevron U.S.A., Inc. Project:
Series A, 0.17%**, 12/1/2030, GTY: Chevron Corp.		1,000,000		1,000,000
Series E, 0.18%**, 12/1/2030, GTY: Chevron Corp.		2,100,000		2,100,000
Series H, 0.18%**, 11/1/2035, GTY: Chevron Corp.		9,000,000		9,000,000
Warren County, MS, Gulf Opportunity Zone, International Paper Co.:
Series A, 5.5%, 9/1/2031		5,000,000		5,331,400
Series A, 6.5%, 9/1/2032		7,420,000		8,629,089
				42,531,529
Missouri 0.4%
Cape Girardeau County, MO, Industrial Development Authority, Health Care Facilities Revenue, St. Francis Medical Center, Series A, 5.75%, 6/1/2039		2,150,000		2,468,888
Missouri, State Health & Educational Facilities Authority Revenue, Lutheran Senior Services, Series C, 5.0%, 2/1/2042		8,240,000		8,522,714
St. Louis, MO, Industrial Development Authority Revenue, Convention Center Hotel, Zero Coupon, 7/15/2016, INS: AMBAC		6,895,000		6,167,440
St. Louis, MO, State General Obligation Lease, Industrial Development Authority, Convention Center Hotel, Zero Coupon, 7/15/2015, INS: AMBAC		4,200,000		3,884,202
				21,043,244
Nebraska 0.1%
Omaha, NE, Public Power District Electric Revenue:
Series A, 5.5%, 2/1/2033		1,000,000		1,177,240
Series A, 5.5%, 2/1/2035		1,000,000		1,177,240
Series A, 5.5%, 2/1/2039		1,000,000		1,177,240
				3,531,720
Nevada 0.3%
Clark County, NV, Airport Revenue, Series B, 5.125%, 7/1/2036		5,000,000		5,706,150
Las Vegas Monorail Co.:
Series B, Step-up Coupon, 3.0% to 12/31/15, 5.5% to 7/15/2055* (PIK)		25,542		0
Series A, 5.5%, 7/15/2019* (PIK)		85,141		0
Las Vegas Valley, NV, Water District, Series B, 5.0%, 6/1/2037		9,110,000		10,759,548
				16,465,698
New Hampshire 0.2%
New Hampshire, Health & Education Facilities Authority Revenue, Wentworth-Douglas Hospital, Series A, 6.5%, 1/1/2031		10,000,000		12,179,200
New Jersey 3.1%
New Jersey, Economic Development Authority Revenue, Cigarette Tax:
Prerefunded, 5.5%, 6/15/2031		3,000,000		3,239,580
Prerefunded, 5.75%, 6/15/2034		2,455,000		2,660,483
New Jersey, Economic Development Authority Revenue, Motor Vehicle Surplus Revenue:
Series A, 5.0%, 7/1/2022, INS: NATL		7,140,000		7,580,110
Series A, 5.0%, 7/1/2023, INS: NATL		8,845,000		9,390,206
New Jersey, Garden State Preservation Trust, Open Space & Farm Land, Series 2005-A, Prerefunded, 5.8%, 11/1/2023, INS: AGMC		5,000,000		5,772,600
New Jersey, Industrial Development Revenue, Economic Development Authority, Harrogate, Inc., Series A, 5.875%, 12/1/2026		1,000,000		1,000,860
New Jersey, State Economic Development Authority Revenue, 5.0%, 6/15/2028		1,050,000		1,216,036
New Jersey, State Transportation Trust Fund Authority, Series A, 5.75%, 6/15/2020, INS: AMBAC		11,000,000		14,058,440
New Jersey, State Transportation Trust Fund Authority, Capital Appreciation, Transportation Systems:
Series A, Zero Coupon, 12/15/2026		54,000,000		32,338,440
Series A, Zero Coupon, 12/15/2028		30,000,000		16,387,800
New Jersey, State Transportation Trust Fund Authority, Transportation Systems:
Series B, 5.25%, 6/15/2036		15,940,000		18,988,525
Series B, 5.5%, 6/15/2031		13,200,000		16,291,440
Series A, 6.0%, 6/15/2035		6,000,000		7,587,600
Series A, 6.0%, 12/15/2038		11,075,000		13,545,389
Series A, Prerefunded, 6.0%, 12/15/2038		5,925,000		7,770,874
New Jersey, State Turnpike Authority Revenue:
Series A, 5.0%, 1/1/2035		6,025,000		7,158,845
Series E, 5.25%, 1/1/2040		5,250,000		6,020,385
Series C, 6.5%, 1/1/2016, INS: AMBAC		785,000		914,439
Series C, ETM, 6.5%, 1/1/2016, INS: AMBAC		425,000		501,772
Series C-2005, ETM, 6.5%, 1/1/2016, INS: AMBAC		425,000		504,076
				172,927,900
New York 5.0%
New York, Higher Education Revenue, Dormitory Authority, Series B, 5.25%, 5/15/2019, INS: FGIC		6,000,000		6,865,200
New York, Higher Education Revenue, Dormitory Authority, City University, Series B, 6.0%, 7/1/2014, INS: FGIC		2,415,000		2,527,781
New York, Metropolitan Transportation Authority Revenue:
Series E, 5.0%, 11/15/2042		10,140,000		11,860,251
Series H, 5.0%, 11/15/2042		12,250,000		14,328,212
New York, School District General Obligation, Dormitory Authority, City University, Series A, 5.5%, 5/15/2019		1,500,000		1,803,180
New York, Senior Care Revenue, Dormitory Authority, City University, Series A, 5.25%, 5/15/2021		2,000,000		2,580,100
New York, State Agency General Obligation Lease, Urban Development Corp., 5.7%, 4/1/2020		3,600,000		4,393,008
New York, State Dormitory Authority, Personal Income Tax Revenue:
Series F, 5.0%, 2/15/2035		5,000,000		6,021,500
Series A, 5.0%, 3/15/2038 (a)		8,750,000		10,492,387
Series C, 5.0%, 3/15/2041		10,000,000		11,742,700
New York, State Energy Research & Development Authority, Consolidated Edison Co. of New York, Inc.:
Series A-1, 144A, 0.14%**, 5/1/2039, LOC: Mizuho Corporate Bank		4,600,000		4,600,000
Series A-2, 144A, 0.15%**, 5/1/2039, LOC: Mizuho Corporate Bank		1,800,000		1,800,000
New York, State General Obligation Lease, Urban Development Corp., State Facilities, 5.6%, 4/1/2015		4,655,000		4,941,934
New York, State General Obligation, Tobacco Settlement Financing Corp., Series A-1, 5.25%, 6/1/2022, INS: AMBAC		12,600,000		12,901,770
New York, State Liberty Development Corp. Revenue, World Trade Center Port Authority Construction, 5.25%, 12/15/2043		40,000,000		47,621,600
New York, State Thruway Authority Revenue, Series I, 5.0%, 1/1/2037		9,370,000		11,058,755
New York, State Thruway Authority, Second Generation Highway & Bridge Trust Funding Authority:
Series A, 5.0%, 4/1/2031		5,250,000		6,383,003
Series A, 5.0%, 4/1/2032		4,000,000		4,833,480
New York, Water & Sewer Revenue, Environmental Facilities Corp., State Water Pollution Control, Series E, 6.875%, 6/15/2014		2,430,000		2,443,632
New York City, NY, Municipal Water Finance Authority, Water & Sewer Revenue, Series FF-2, 5.0%, 6/15/2040		2,270,000		2,667,500
New York City, NY, Municipal Water Finance Authority, Water & Sewer Revenue, Second General Resolution:
Series DD-2, 0.14%**, 6/15/2043, SPA: Bank of New York Mellon Corp.		8,400,000		8,400,000
Series B, 0.18%**, 6/15/2032, SPA: California State Teacher's Retirement System		6,000,000		6,000,000
Series EE, 5.375%, 6/15/2043		11,250,000		13,872,150
New York City, NY, Municipal Water Finance Authority, Water & Sewer Systems Revenue, Second Generation-Fiscal 2008, Series BB-2, 0.18%**, 6/15/2035, SPA: Bank of America NA		20,500,000		20,500,000
New York City, NY, Transitional Finance Authority Revenue, Future Tax Secured, Series D-1, 5.0%, 11/1/2038		10,000,000		11,956,600
New York, NY, General Obligation:
Series D-1, 5.0%, 10/1/2033		25,000,000		30,246,500
Series D-1, 5.0%, 10/1/2034		5,000,000		6,031,600
Series I-1, 5.375%, 4/1/2036		7,000,000		8,498,560
Troy, NY, Capital Resource Corp. Revenue, Rensselaer Polytechnic Institute, Series A, 5.125%, 9/1/2040		2,000,000		2,274,900
				279,646,303
North Carolina 1.3%
Charlotte, NC, Airport Revenue, Series A, 5.5%, 7/1/2034		1,500,000		1,817,820
Charlotte, NC, Core City General Obligation, 5.5%, 8/1/2018		4,165,000		4,352,633
North Carolina, Electric Revenue, 5.25%, 1/1/2020, INS: NATL		4,000,000		4,016,880
North Carolina, Electric Revenue, Eastern Municipal Power Agency:
6.0%, 1/1/2018, INS: AMBAC		8,775,000		10,776,490
Series B, 6.0%, 1/1/2022, INS: NATL		18,775,000		24,903,348
North Carolina, Medical Care Commission, Health Care Facilities Revenue, University Health System, Series D, 6.25%, 12/1/2033		17,000,000		20,868,010
North Carolina, Municipal Power Agency, No. 1 Catawba Electric Revenue, Series A, 5.0%, 1/1/2030		5,410,000		6,236,702
				72,971,883
North Dakota 0.2%
Fargo, ND, Sanford Health Systems Revenue, 6.25%, 11/1/2031		9,260,000		11,744,921
Ohio 1.8%
Akron, OH, Project Revenue, Economic Development, ETM, 6.0%, 12/1/2012, INS: NATL		350,000		350,056
Avon, OH, School District General Obligation, 6.5%, 12/1/2015, INS: AMBAC		940,000		1,090,494
Beavercreek, OH, School District General Obligation, Local School District, 6.6%, 12/1/2015, INS: FGIC, NATL		1,190,000		1,297,231
Big Walnut, OH, School District General Obligation, Local School District, Zero Coupon, 12/1/2012, INS: AMBAC		420,000		419,987
Cleveland, OH, Airport Systems Revenue, Series A, 5.0%, 1/1/2030		1,000,000		1,161,030
Cleveland, OH, Sales & Special Tax Revenue, Urban Renewal Tax Increment, Rock & Roll Hall of Fame and Museum Project, 6.75%, 3/15/2018		885,000		886,425
Cuyahoga County, OH, Cleveland Clinic Health System Revenue, Series B3, 0.18%**, 1/1/2039, SPA: U.S. Bank NA		3,705,000		3,705,000
Cuyahoga County, OH, County General Obligation, 5.65%, 5/15/2018		500,000		576,800
Fayette County, OH, School District General Obligation, Rattlesnake Improvement Area Project, 5.9%, 12/1/2013		5,000		5,000
Finneytown, OH, Other General Obligation, Local School District, 6.2%, 12/1/2017, INS: FGIC, NATL		320,000		368,125
Franklin County, OH, School District General Obligation, 6.5%, 12/1/2013		145,000		149,398
Hancock County, OH, Hospital Revenue, Blanchard Valley Regional Health Center, 6.5%, 12/1/2030		14,425,000		17,913,830
Hilliard, OH, School District General Obligation, Series A, Zero Coupon, 12/1/2012, INS: FGIC, NATL		1,655,000		1,654,983
Huber Heights, OH, Water & Sewer Revenue, Zero Coupon, 12/1/2012, INS: NATL		1,005,000		1,004,990
Kent, OH, State University Revenues, General Receipts, Series A, 5.0%, 5/1/2037		8,440,000		9,827,283
Liberty Benton, OH, School District General Obligation, Zero Coupon, 12/1/2014, INS: AMBAC		570,000		551,407
Liberty, OH, School District General Obligation, Zero Coupon, 12/1/2012, INS: FGIC, NATL		255,000		254,995
Lucas County, OH, Hospital Revenue, Promedica Healthcare, Series A, 6.5%, 11/15/2037		6,000,000		7,695,960
Ohio, American Municipal Power, Inc. Revenue, Fremont Energy Center Project, Series B, 5.0%, 2/15/2037		13,090,000		14,995,119
Ohio, Higher Education Revenue, Case Western Reserve University:
6.0%, 10/1/2014		1,000,000		1,096,420
Series B, 6.5%, 10/1/2020		2,250,000		2,776,005
Ohio, School District General Obligation, 6.0%, 12/1/2019, INS: AMBAC		475,000		562,623
Ohio, State Higher Educational Facility Commission Revenue, Summa Health Systems Project:
Series 2010, 5.25%, 11/15/2035, INS: AGMC		7,500,000		8,436,075
Series 2010, 5.5%, 11/15/2030, INS: AGMC		4,000,000		4,587,520
Ohio, State Hospital Facility Revenue, Cleveland Clinic Health System, Series B, 5.5%, 1/1/2039		13,600,000		15,628,984
Toledo, OH, Other General Obligation, Macy's Project, Series A, AMT, 6.35%, 12/1/2025, INS: NATL		1,000,000		1,002,920
Wayne, OH, School District General Obligation, 6.6%, 12/1/2016, INS: AMBAC		175,000		196,523
Wooster, OH, School District General Obligation, Zero Coupon, 12/1/2013, INS: AGMC		930,000		923,165
				99,118,348
Oklahoma 0.7%
Oklahoma, State Municipal Power Authority, Supply System Revenue, Series A, 6.0%, 1/1/2038		8,625,000		10,255,470
Oklahoma, Water & Sewer Revenue, McGee Creek Authority, 6.0%, 1/1/2023, INS: NATL		23,125,000		27,124,931
				37,380,401
Oregon 0.0%
Yamhill County, OR, Hospital Authority Revenue, Friendsview Community, 0.19%**, 12/1/2034, LOC: U.S. Bank NA		1,745,000		1,745,000
Pennsylvania 2.9%
Allegheny County, PA, Airport Revenue, Pittsburgh International Airport:
Series A, AMT, 5.75%, 1/1/2013, INS: NATL		9,400,000		9,432,242
Series A-1, AMT, 5.75%, 1/1/2014, INS: NATL		10,500,000		10,909,815
Allegheny County, PA, Hospital Development Authority Revenue, University of Pittsburgh Medical, 5.625%, 8/15/2039		11,800,000		13,556,902
Berks County, PA, Hospital & Healthcare Revenue, Municipal Authority, Reading Hospital & Medical Center Project, 5.7%, 10/1/2014, INS: NATL		370,000		386,931
Exter Township, PA, School District General Obligation, Zero Coupon, 5/15/2017, INS: FGIC, NATL		3,700,000		3,438,188
Latrobe, PA, Higher Education Revenue, Industrial Development Authority, 5.375%, 5/1/2013		220,000		224,202
Montgomery County, PA, Industrial Development Authority, Acts Retirement-Life Communities, Inc., 0.19%**, 11/15/2029, INS: Radian, LOC: TD Bank NA		7,000,000		7,000,000
Pennsylvania, Central Bradford Progress Authority Revenue, Guthrie Healthcare System, 5.375%, 12/1/2041		12,550,000		14,633,175
Pennsylvania, Sales & Special Tax Revenue, Convention Center Authority, Series A, ETM, 6.0%, 9/1/2019, INS: FGIC		2,200,000		2,868,338
Pennsylvania, State Turnpike Commission Revenue, Series B, 5.75%, 6/1/2039		32,000,000		37,338,560
Pennsylvania, State Turnpike Commission Revenue, Capital Appreciation, Series E, Step-up Coupon, 0% to 12/1/2017, 6.375% to 12/1/2038		40,000,000		40,445,200
Pennsylvania, State Turnpike Commission Revenue, Motor License Fund, Series A, 6.0%, 12/1/2036		3,000,000		3,778,380
Pennsylvania, Water & Sewer Revenue, 5.25%, 11/1/2014, INS: NATL		780,000		827,853
Philadelphia, PA, Airport Revenue, Series A, 5.0%, 6/15/2035		7,080,000		7,890,164
Philadelphia, PA, Water & Wastewater Revenue:
Series A, 5.25%, 1/1/2032		3,000,000		3,442,050
Series A, 5.25%, 1/1/2036		2,500,000		2,836,750
Pittsburgh, PA, Core City General Obligation, Series A, 5.5%, 9/1/2014, INS: AMBAC		555,000		577,544
Pittsburgh, PA, Water & Sewer System, ETM, 7.25%, 9/1/2014, INS: FGIC		40,000		43,072
Westmoreland County, PA, Project Revenue, Zero Coupon, 8/15/2017, INS: NATL		6,230,000		5,722,753
				165,352,119
Puerto Rico 2.0%
Puerto Rico, Sales Tax Financing Corp., Sales Tax Revenue:
Series A, 5.375%, 8/1/2039		13,650,000		14,822,398
Series A, 6.5%, 8/1/2044		35,000,000		41,275,150
Puerto Rico, Sales Tax Financing Corp., Sales Tax Revenue, Convertible Capital Appreciation, Series A, Step-up Coupon, 0% to 8/1/2016, 6.75% to 8/1/2032		55,000,000		58,143,250
				114,240,798
Rhode Island 0.9%
Rhode Island, Health & Educational Building Corp., Higher Education Facility Revenue, Brown University, Series A, 5.0%, 9/1/2039 (a)		13,000,000		15,348,060
Rhode Island, Health & Educational Building Corp., Higher Education Facility Revenue, University of Rhode Island, Series A, 6.25%, 9/15/2034		10,000,000		11,983,000
Rhode Island, Project Revenue, Convention Center Authority, Series B, 5.25%, 5/15/2015, INS: NATL		13,870,000		14,477,367
Rhode Island, Tobacco Settlement Financing Corp., Series A, 6.125%, 6/1/2032		7,750,000		7,901,125
				49,709,552
South Carolina 0.9%
Greenwood County, SC, Hospital Revenue, Self Regional Healthcare, 5.375%, 10/1/2039		7,500,000		8,595,750
South Carolina, Jobs Economic Development Authority, Hospital Facilities Revenue, Palmetto Health Alliance:
5.75%, 8/1/2039		1,910,000		2,184,925
Series C, Prerefunded, 7.0%, 8/1/2030		6,885,000		7,192,346
South Carolina, Piedmont Municipal Power Agency, Electric Revenue:
Series A, ETM, 6.5%, 1/1/2016, INS: FGIC		430,000		508,110
6.75%, 1/1/2019, INS: FGIC, NATL		2,065,000		2,693,999
ETM, 6.75%, 1/1/2019, INS: FGIC		1,460,000		1,954,984
South Carolina, State Ports Authority Revenue, 5.25%, 7/1/2040		10,195,000		11,781,954
South Carolina, State Public Service Authority Revenue, Santee Cooper:
Series E, 5.0%, 1/1/2040		10,000,000		11,624,600
Series A, 5.375%, 1/1/2028		2,500,000		3,031,450
				49,568,118
South Dakota 0.1%
South Dakota, State Health & Educational Facilities Authority Revenue, Sanford Health, 5.5%, 11/1/2040		3,000,000		3,426,150
South Dakota, State Health & Educational Facilities Authority, Regional Health, 0.19%**, 9/1/2027, LOC: U.S. Bank NA		2,200,000		2,200,000
				5,626,150
Tennessee 0.9%
Jackson, TN, Hospital Revenue, Jackson-Madison Project:
5.5%, 4/1/2033		3,000,000		3,438,000
5.625%, 4/1/2038		4,550,000		5,232,682
5.75%, 4/1/2041		8,675,000		10,044,349
Knox County, TN, Hospital & Healthcare Revenue, Sanders Alliance:
5.75%, 1/1/2014, INS: NATL		2,000,000		2,108,740
6.25%, 1/1/2013, INS: NATL		4,000,000		4,018,840
Shelby County, TN, General Obligation:
Zero Coupon, 8/1/2014		4,920,000		4,875,277
ETM, Zero Coupon, 8/1/2014		45,000		44,657
Sullivan County, TN, Health, Educational & Housing Facilities Board, Hospital Revenue, Wellmont Health Systems Project, Series C, 5.25%, 9/1/2036		10,000,000		10,684,300
Tennessee, Energy Acquisition Corp., Gas Revenue:
Series A, 5.25%, 9/1/2019		7,000,000		8,232,490
Series A, 5.25%, 9/1/2021		2,000,000		2,384,040
				51,063,375
Texas 10.3%
Abilene, TX, Senior Care Revenue, Sears Methodist Retirement, Health Facilities Development, Series A, 5.875%, 11/15/2018		2,274,000		1,628,730
Austin, TX, Austin-Bergstrom Landhost Enterprises, Inc., Airport Hotel Project, Series A, 3.375%, 4/1/2027 (b)		21,335,000		10,578,746
Cypress and Fairbanks, TX, School District General Obligation, Cypress-Fairbanks Texas Independent School District:
Series A, Zero Coupon, 2/15/2013		4,840,000		4,837,580
Series A, Zero Coupon, 2/15/2014		6,000,000		5,972,400
Dallas, TX, Waterworks & Sewer Systems Revenue, 5.0%, 10/1/2037		4,600,000		5,366,682
Harris County, TX, County General Obligation, Zero Coupon, 10/1/2017, INS: NATL		3,910,000		3,714,774
Harris County, TX, Health Facilities Development Corp., Hospital Revenue, Memorial Hermann Healthcare System, Series B, 7.25%, 12/1/2035		5,000,000		6,349,750
Harris County, TX, Port Houston Authority, Series D-1, 5.0%, 10/1/2035		18,290,000		22,783,670
Houston, TX, Airport Systems Revenue:
Series B, 5.0%, 7/1/2027, INS: FGIC, NATL		21,030,000		24,144,122
Series B, 5.0%, 7/1/2032		3,510,000		4,160,052
Series A, 5.5%, 7/1/2039		10,000,000		11,838,100
Houston, TX, Higher Education Finance Corp. Revenue, Rice University Project, Series A, 5.0%, 5/15/2040		11,185,000		13,222,795
Houston, TX, Utility Systems Revenue, First Lien, Series D, 5.0%, 11/15/2036		7,000,000		8,362,620
Houston, TX, Water & Sewer Revenue, Series C, Zero Coupon, 12/1/2012, INS: AMBAC		4,350,000		4,349,957
North Texas, Tollway Authority Revenue:
Series C, 5.25%, 1/1/2044		20,000,000		22,314,800
First Tier, Series A, 5.625%, 1/1/2033		6,500,000		7,580,885
Second Tier, Series F, 5.75%, 1/1/2033		12,210,000		13,865,798
Second Tier, Series F, 5.75%, 1/1/2038		16,500,000		18,621,075
First Tier, 6.0%, 1/1/2043		30,000,000		36,120,000
North Texas, Tollway Authority Revenue, Special Project Systems:
Series D, 5.0%, 9/1/2032		8,000,000		9,545,920
Series A, 6.0%, 9/1/2041		6,675,000		8,546,470
Tarrant County, TX, Cultural Education Facilities Finance Corp., Hospital Revenue, Scott & White Healthcare, 5.625%, 8/15/2035		10,000,000		11,745,200
Tarrant County, TX, Cultural Education Facilities Finance Corp., State Health Resources, 5.0%, 11/15/2040		19,325,000		21,860,440
Texas, Dallas/Fort Worth International Airport Revenue:
Series B, 5.0%, 11/1/2035		11,470,000		13,272,969
Series D, 5.0%, 11/1/2035		24,425,000		27,965,404
Series D, AMT, 5.0%, 11/1/2038		19,355,000		21,633,083
Series A, 5.25%, 11/1/2038		20,000,000		23,219,400
Series A, AMT, 5.5%, 11/1/2019, INS: NATL		20,000,000		20,829,600
Texas, Electric Revenue:
Zero Coupon, 9/1/2017, INS: NATL		5,880,000		5,494,448
ETM, Zero Coupon, 9/1/2017, INS: NATL		120,000		115,668
Texas, Electric Revenue, Municipal Power Agency, Zero Coupon, 9/1/2016, INS: NATL		18,300,000		17,539,086
Texas, Grapevine-Colleyville Independent School District Building:
5.0%, 8/15/2034		6,080,000		7,371,270
5.0%, 8/15/2035		6,130,000		7,394,313
5.0%, 8/15/2036		3,350,000		4,029,246
Texas, Lower Colorado River Authority Revenue, Series A, 5.0%, 5/15/2036 (c)		12,000,000		13,993,200
Texas, Lower Colorado River Authority, Transmission Contract Revenue, LCRA Transmission Services, 5.0%, 5/15/2040		20,000,000		22,805,600
Texas, Municipal Gas Acquisition & Supply Corp. I, Gas Supply Revenue:
Series B, 0.96%***, 12/15/2026		19,800,000		16,360,344
Series D, 6.25%, 12/15/2026		20,000,000		26,540,000
Texas, Municipal Power Agency, ETM, Zero Coupon, 9/1/2016, INS: NATL		375,000		366,416
Texas, SA Energy Acquisition Public Facility Corp., Gas Supply Revenue:
5.5%, 8/1/2021		5,575,000		6,655,658
5.5%, 8/1/2025		2,750,000		3,320,158
Texas, Southwest Higher Education Authority, Inc., Southern Methodist University Project, 5.0%, 10/1/2035		2,400,000		2,855,520
Texas, State Municipal Gas Acquisition & Supply Corp. III, Gas Supply Revenue:
5.0%, 12/15/2030 (c)		2,250,000		2,510,438
5.0%, 12/15/2031 (c)		4,500,000		5,000,850
5.0%, 12/15/2032 (c)		4,500,000		4,988,925
Texas, State Technical University Revenue, Series A, 5.0%, 8/15/2037		5,400,000		6,448,032
Texas, State Transportation Commission, Turnpike Systems Revenue, Third Lien, Series A, 5.0%, 8/15/2041		38,425,000		43,623,518
				581,843,712
Utah 0.0%
Provo, UT, Electric Revenue, Series A, ETM, 10.375%, 9/15/2015, INS: AMBAC		580,000		668,462
Salt Lake City, UT, Core City General Obligation, 5.75%, 6/15/2014		25,000		25,117
				693,579
Virginia 0.4%
Roanoke, VA, Hospital & Healthcare Revenue, Industrial Development Authority, Roanoke Memorial Hospital, Series B, ETM, 6.125%, 7/1/2017, INS: NATL		5,500,000		6,381,430
Virginia Beach, VA, Hospital & Healthcare Revenue, Development Authority Hospital Facility First Mortgage, 5.125%, 2/15/2018, INS: AMBAC		3,000,000		3,561,030
Washington County, VA, Industrial Development Authority, Hospital Facility Revenue, Mountain States Health Alliance, Series C, 7.75%, 7/1/2038		7,760,000		9,788,852
Winchester, VA, Hospital & Healthcare Revenue, Industrial Development Authority, 5.5%, 1/1/2015, INS: AMBAC		3,610,000		3,771,259
				23,502,571
Washington 2.6%
Chelan County, WA, Electric Revenue, Public Utilities, Columbia River Rock, Zero Coupon, 6/1/2014, INS: NATL		12,685,000		12,525,296
Clark County, WA, School District General Obligation, Zero Coupon, 12/1/2017, INS: FGIC, NATL		6,725,000		6,199,172
Port of Seattle, WA, Airport Revenue:
Series A, 5.0%, 8/1/2031		2,000,000		2,426,100
Series A, 5.0%, 8/1/2032		2,500,000		3,015,925
Series B, AMT, 6.0%, 2/1/2014, INS: NATL		4,000,000		4,248,680
Washington, State General Obligation:
Series 5, Zero Coupon, 1/1/2017, INS: FGIC, NATL		4,535,000		4,347,704
Series B, 5.0%, 2/1/2033		5,000,000		6,026,950
Series 2011A, 5.0%, 8/1/2033		20,000,000		24,815,800
Series A, 5.0%, 8/1/2035		12,190,000		14,651,649
Washington, State Health Care Facilities Authority Revenue, Series C, 5.375%, 8/15/2028, INS: Radian		5,240,000		5,671,095
Washington, State Health Care Facilities Authority Revenue, Virginia Mason Medical Center, Series A, 6.125%, 8/15/2037		7,035,000		7,860,557
Washington, State Health Care Facilities Authority, Multicare Health Systems, Series D, 0.18%**, 8/15/2041, LOC: Barclays Bank PLC		7,000,000		7,000,000
Washington, State Health Care Facilities Authority, Swedish Health Services, Series A, Prerefunded, 6.75%, 11/15/2041		12,175,000		17,484,274
Washington, State Motor Vehicle Tax-Senior 520, Corridor Toll Program:
Series C, 5.0%, 6/1/2032		7,725,000		9,437,555
Series C, 5.0%, 6/1/2033		6,000,000		7,278,180
Series C, 5.0%, 6/1/2041		11,000,000		12,979,340
				145,968,277
Wisconsin 1.4%
Milwaukee County, WI, Airport Revenue, Series A, 5.0%, 12/1/2034		7,000,000		7,852,530
Wisconsin, Hospital & Healthcare Revenue, Health & Education Facilities Authority:
Series B, ETM, 6.25%, 1/1/2022, INS: AMBAC		3,510,000		4,334,745
Series C, ETM, 6.25%, 1/1/2022, INS: AMBAC		6,135,000		7,637,829
Wisconsin, Hospital & Healthcare Revenue, Health & Educational Facilities Authority, Aurora Health Care, Inc., 6.875%, 4/15/2030		14,000,000		14,206,500
Wisconsin, State Health & Educational Facilities Authority Revenue, Froedtert Health, Inc., Series A, 5.0%, 4/1/2042		11,040,000		12,740,381
Wisconsin, State Health & Educational Facilities Authority Revenue, Ministry Health Care, Inc., Series C, 5.0%, 8/15/2032		6,940,000		7,922,218
Wisconsin, State Health & Educational Facilities Authority Revenue, Prohealth Care, Inc. Obligation Group, 6.625%, 2/15/2039		7,335,000		8,796,059
Wisconsin, State Health & Educational Facilities Authority Revenue, SSM Health Care Corp., Series A, 5.25%, 6/1/2034		2,000,000		2,292,360
Wisconsin, State Health & Educational Facilities Authority Revenue, Thedacare, Inc., Series A, 5.5%, 12/15/2038		13,235,000		14,949,065
				80,731,687
Wyoming 0.1%
Sweetwater County, WY, Pollution Control Revenue, Pacificorp Project, Series B, 0.18%**, 1/1/2014, LOC: Barclays Bank PLC		7,000,000		7,000,000
Total Municipal Bonds and Notes (Cost $4,603,770,845)				5,292,534,377
Municipal Inverse Floating Rate Notes (d) 11.8%
California 2.5%
California, San Francisco Bay Area Toll Authority, Toll Bridge Revenue, Series F, 5.0%, 4/1/2031 (e)		10,700,000		12,488,284
Trust: California, Bay Area Toll Authority, Toll Bridge Revenue, Series 1962-4, 144A, 13.588%, 4/1/2014, Leverage Factor at purchase date: 3 to 1
California, State Department of Water Resources Revenue, Central Valley Project, Series AE, 5.0%, 12/1/2023 (e)		5,236,056		6,370,466
California, State Department of Water Resources Revenue, Central Valley Project, Series AE, 5.0%, 12/1/2024 (e)		3,742,268		4,553,043
California, State Department of Water Resources Revenue, Central Valley Project, Series AE, 5.0%, 12/1/2025 (e)		3,118,557		3,794,202
Trust: California, State Department of Water Resources Revenue, Series 2705, 144A, 12.778%, 12/1/2023, Leverage Factor at purchase date: 3 to 1
California, University of California Revenues, Series O, 5.25%, 5/15/2039 (e)		15,620,000		18,686,362
Trust: California, University of California Revenues, Series 3368-2, 144A, 18.84%, 11/15/2016, Leverage Factor at purchase date: 4 to 1
Los Angeles, CA, Waste Water System Revenue, Series A, 5.375%, 6/1/2039 (e)		30,000,000		36,642,300
Trust: Los Angeles, CA, Series 3371-2, 144A, 19.34%, 12/1/2016, Leverage Factor at purchase date: 4 to 1
Los Angeles, CA, Community College District, Election of 2008, Series A, 6.0%, 8/1/2033 (e)		30,000,000		38,416,200
Trust: Los Angeles, CA, Community College District, Series R-11728, 144A, 27.32%, 8/1/2033, Leverage Factor at purchase date: 5 to 1
San Francisco, CA, Bay Area Rapid Transportation District, Election of 2004, Series B, 5.0%, 8/1/2032 (e)		14,997,001		17,272,351
Trust: San Francisco, CA, Bay Area Rapid Transportation District, Series 3161, 144A, 13.537%, 8/1/2015, Leverage Factor at purchase date: 3 to 1
				138,223,208
District of Columbia 0.5%
District of Columbia, Income Tax Revenue, Series A, 5.5%, 12/1/2030 (e)		22,000,000		28,140,200
Trust: District of Columbia, Series 3369, 144A, 19.84%, 6/1/2017, Leverage Factor at purchase date: 4 to 1
Florida 1.3%
Florida, State Turnpike Authority Revenue, Department of Transportation, Series A, 5.0%, 7/1/2021 (e)		30,130,000		35,143,925
Trust: Florida, State Turnpike Authority Revenue, Series 2514, 144A, 43.331%, 7/1/2015, Leverage Factor at purchase date: 10 to 1
Miami-Dade County, FL, Transit Sales Surtax Revenue, 5.0%, 7/1/2023, INS: AGMC (e)		3,740,000		4,369,944
Miami-Dade County, FL, Transit Sales Surtax Revenue, 5.0%, 7/1/2024, INS: AGMC (e)		3,915,000		4,574,420
Miami-Dade County, FL, Transit Sales Surtax Revenue, 5.0%, 7/1/2025, INS: AGMC (e)		4,122,500		4,816,870
Miami-Dade County, FL, Transit Sales Surtax Revenue, 5.0%, 7/1/2026, INS: AGMC (e)		4,317,500		5,044,714
Miami-Dade County, FL, Transit Sales Surtax Revenue, 5.0%, 7/1/2032, INS: AGMC (e)		16,470,000		19,244,110
Trust: Miami-Dade County, FL, Series 2008-1160, 144A, 9.251%, 1/1/2016, Leverage Factor at purchase date: 2 to 1
				73,193,983
Louisiana 0.2%
Louisiana, State Gas & Fuels Tax Revenue, Series B, 5.0%, 5/1/2033 (e)		3,023,487		3,609,388
Louisiana, State Gas & Fuels Tax Revenue, Series B, 5.0%, 5/1/2034 (e)		3,300,848		3,940,498
Louisiana, State Gas & Fuels Tax Revenue, Series B, 5.0%, 5/1/2035 (e)		3,663,166		4,373,028
Trust: Louisiana, State Gas & Fuels Tax Revenue, Series 3806, 144A, 9.298%, 5/1/2018, Leverage Factor at purchase date: 2 to 1
				11,922,914
Massachusetts 1.6%
Massachusetts, State Development Finance Agency Revenue, Harvard University, Series B-2, 5.25%, 2/1/2034 (e)		20,000,000		24,884,600
Trust: Massachusetts, State Development Finance Agency Revenue, Harvard University, Series 4691, 144A, 9.97%, 1/17/2019, Leverage Factor at purchase date: 2 to 1
Massachusetts, State General Obligation, Series A, 5.0%, 8/1/2027 (e)		7,825,000		9,270,820
Massachusetts, State General Obligation, Series A, 5.0%, 8/1/2033 (e)		3,000,000		3,554,308
Massachusetts, State General Obligation, Series A, 5.0%, 8/1/2038 (e)		2,750,000		3,258,116
Trust: Massachusetts, State General Obligation, Series 2008-1203, 144A, 14.838%, 8/1/2038, Leverage Factor at purchase date: 3 to 1
Massachusetts, State General Obligation, Series C, 5.0%, 8/1/2026, INS: AGMC (e)		20,000,000		23,396,200
Trust: Massachusetts, State General Obligation, Series 2022-1, 144A, 42.98%, 8/1/2015, Leverage Factor at purchase date: 10 to 1
Massachusetts, State General Obligation, Series C, 5.0%, 8/1/2027, INS: AGMC (e)		20,000,000		23,396,200
Trust: Massachusetts, State General Obligation, Series 2022-2, 144A, 42.98%, 8/1/2015, Leverage Factor at purchase date: 10 to 1
				87,760,244
Nevada 1.3%
Clark County, NV, General Obligation, 5.0%, 6/1/2028 (e)		6,252,645		7,336,603
Clark County, NV, General Obligation, 5.0%, 6/1/2029 (e)		6,565,277		7,703,433
Clark County, NV, General Obligation, 5.0%, 6/1/2030 (e)		6,372,122		7,476,792
Trust: Clark County, NV, General Obligation, Series 3158, 144A, 13.533%, 6/1/2016, Leverage Factor at purchase date: 3 to 1
Clark County, NV, School District, Series C, 5.0%, 6/15/2021 (e)		16,118,519		18,748,094
Clark County, NV, School District, Series C, 5.0%, 6/15/2022 (e)		16,841,398		19,588,904
Clark County, NV, School District, Series C, 5.0%, 6/15/2023 (e)		10,876,807		12,651,248
Trust: Clark County, NV, School Improvements, Series 2008-1153, 144A, 9.251%, 6/15/2015, Leverage Factor at purchase date: 2 to 1
				73,505,074
New York 1.0%
New York, State Dormitory Authority Revenues, Columbia University, 5.0%, 7/1/2038 (e)		27,925,000		33,039,138
Trust: New York, State Dormitory Authority Revenues, Secondary Issues, Series R-11722-1, 144A, 17.981%, 7/1/2016, Leverage Factor at purchase date: 4 to 1
New York, NY, General Obligation, Series C-1, 5.0%, 10/1/2024, INS: AGMC (e)		19,425,000		23,103,342
Trust: New York, NY, Series 2008-1131, 144A, 9.222%, 10/1/2015, Leverage Factor at purchase date: 2 to 1
				56,142,480
North Carolina 0.4%
North Carolina, Capital Facilities Finance Agency Revenue, Duke University Project, Series B, 5.0%, 10/1/2038, INS: AGMC (e)		20,000,000		24,221,000
Trust: North Carolina, Capital Facilities Finance Agency Revenue, Duke University Project, Series 3333, 144A, 17.81%, 10/1/2016, Leverage Factor at purchase date: 4 to 1
Ohio 0.7%
Columbus, OH, General Obligation, Series A, 5.0%, 9/1/2021 (e)		8,725,000		10,507,579
Columbus, OH, General Obligation, Series A, 5.0%, 9/1/2022 (e)		8,725,000		10,507,578
Trust: Columbus, OH, General Obligation, Series 2365, 144A, 17.89%, 9/1/2015, Leverage Factor at purchase date: 4 to 1
Ohio, State Higher Educational Facilities Community Revenue, Cleveland Clinic Health, Series A, 5.125%, 1/1/2028 (e)		6,032,233		6,809,351
Ohio, State Higher Educational Facilities Community Revenue, Cleveland Clinic Health, Series A, 5.25%, 1/1/2033 (e)		10,287,087		11,612,346
Trust: Ohio, State Higher Educational Revenue, Series 3139, 144A, 14.399%, 1/1/2016, Leverage Factor at purchase date: 3 to 1
				39,436,854
Tennessee 1.3%
Nashville & Davidson County, TN, Metropolitan Government, 5.0%, 1/1/2026 (e)		20,800,000		24,502,608
Trust: Nashville & Davidson County, TN, Metropolitan Government, Series 2631-2, 144A, 17.9%, 1/1/2016, Leverage Factor at purchase date: 4 to 1
Nashville & Davidson County, TN, Metropolitan Government, 5.0%, 1/1/2028 (e)		21,610,075		25,177,531
Trust: Nashville & Davidson County, TN, Metropolitan Government, Series 2631-4, 144A, 17.908%, 1/1/2016, Leverage Factor at purchase date: 4 to 1
Nashville & Davidson County, TN, Metropolitan Government, 5.0%, 1/1/2027 (e)		21,793,305		25,673,923
Trust: Nashville & Davidson County, TN, Metropolitan Government, Series 2631-3, 144A, 17.895%, 1/1/2016, Leverage Factor at purchase date: 4 to 1
				75,354,062
Texas 1.0%
Dallas, TX, Water Works & Sewer Systems Revenue, 5.0%, 10/1/2035 (e)		10,000,000		11,819,500
Trust: Dallas, TX, Water Works & Sewer Systems Revenue, Series 3742, 144A, 9.3%, 4/1/2018, Leverage Factor at purchase date: 2 to 1
Harris County, TX, Flood Control District, Series A, 5.0%, 10/1/2034 (e)		5,500,000		6,530,920
Trust: Texas, Puttable Floating Option Tax Exempt Receipts, Series 4692, 144A, 9.44%, 10/1/2018, Leverage Factor at purchase date: 2 to 1
San Antonio, TX, Electric & Gas Revenue, 5.0%, 2/1/2022 (e)		3,000,000		3,514,243
San Antonio, TX, Electric & Gas Revenue, 5.0%, 2/1/2027 (e)		7,425,000		8,697,751
San Antonio, TX, Electric & Gas Revenue, 5.0%, 2/1/2028 (e)		6,540,000		7,661,049
San Antonio, TX, Electric & Gas Revenue, 5.0%, 2/1/2029 (e)		7,000,000		8,199,899
Trust: San Antonio, TX, Series 2008-1150, 144A, 9.252%, 8/1/2015, Leverage Factor at purchase date: 2 to 1
Texas, Water Development Board Revenue, Series B, 5.25%, 7/15/2026 (e)		10,000,000		11,834,000
Trust: Texas, Water Development Board, Series 2008-1173, 144A, 18.66%, 7/15/2015, Leverage Factor at purchase date: 4 to 1
				58,257,362
Total Municipal Inverse Floating Rate Notes (Cost $568,004,799)				666,157,381

	% of Net Assets			Value ($)
Total Investment Portfolio (Cost $5,171,775,644)†		105.8			5,958,691,758
Other Assets and Liabilities, Net		(5.8	)		(328,294,967	)
Net Assets		100.0			5,630,396,791

The following table represents bonds that are in default:

Security	Coupon			Maturity Date	Principal Amount ($)		Cost ($)		Value ($)
Austin, TX, Austin-Bergstrom Landhost Enterprises, Inc., Airport Hotel Project, Series A (b)		3.375	%	4/1/2027		21,335,000		21,336,699		10,578,746

* Non-income producing security.

** Variable rate demand notes are securities whose interest rates are reset periodically at market levels. These securities are often payable on demand and are shown at their current rates as of November 30, 2012.

*** Floating rate securities' yields vary with a designated market index or market rate, such as the coupon-equivalent of the U.S. Treasury Bill rate. These securities are shown at their current rate as of November 30, 2012.

† The cost for federal income tax purposes was $4,779,689,907. At November 30, 2012, net unrealized appreciation for all securities based on tax cost was $795,866,035. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $815,918,023 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $20,051,988.

(a) At November 30, 2012, this security has been pledged, in whole or in part, as collateral for open interest rate swaps.

(b) Partial interest paying security. The rate shown represents 50% of the original coupon rate.

(c) When-issued security.

(d) Securities represent the underlying municipal obligations of inverse floating rate obligations held by the Fund.

(e) Security forms part of the below tender option bond trust. Principal Amount and Value shown take into account the leverage factor.

144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

AGC: Assured Guaranty Corp.

AGMC: Assured Guaranty Municipal Corp.

AMBAC: Ambac Financial Group, Inc.

AMT: Subject to alternative minimum tax.

ETM: Bonds bearing the description ETM (escrow to maturity) are collateralized usually by U.S. Treasury securities which are held in escrow and used to pay principal and interest on bonds so designated.

FGIC: Financial Guaranty Insurance Co.

GTY: Guaranty Agreement

INS: Insured

LOC: Letter of Credit

NATL: National Public Finance Guarantee Corp.

PIK: Denotes that all or a portion of the income is paid in-kind in the form of additional principal.

Prerefunded: Bonds which are prerefunded are collateralized usually by U.S. Treasury securities which are held in escrow and used to pay principal and interest on tax-exempt issues and to retire the bonds in full at the earliest refunding date.

Radian: Radian Asset Assurance, Inc.

SPA: Standby Bond Purchase Agreement

At November 30, 2012, open interest rate swap contracts were as follows:

Effective/ Expiration Date	Notional Amount ($)			Cash Flows Paid by the Fund	Cash Flows Received by the Fund	Value ($)		Upfront Payments Paid/ (Received) ($)		Unrealized Appreciation ($)
7/31/2013 7/31/2032		10,450,000	1	Fixed — 2.303%	Floating — LIBOR		259,261		—		259,261

Counterparty:

1 Barclays Bank PLC

LIBOR: London Interbank Offered Rate

For information on the Fund's policy and additional disclosures regarding interest rate swap contracts, please refer to Note B in the accompanying Notes to Financial Statements.

Fair Value Measurements

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments). The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of November 30, 2012 in valuing the Fund's investments. For information on the Fund's policy regarding the valuation of investments, please refer to the Security Valuation section of Note A in the accompanying Notes to Financial Statements.

Assets	Level 1		Level 2		Level 3		Total
Municipal Investments (f)	$	—	$	5,958,691,758	$	0	$	5,958,691,758
Derivatives (g) Interest Rate Swaps		—		259,261		—		259,261
Total	$	—	$	5,958,951,019	$	0	$	5,958,951,019

There have been no transfers between fair value measurement levels during the period ended November 30, 2012.

(f) See Investment Portfolio for additional detailed categorizations.

(g) Derivatives include unrealized appreciation (depreciation) on open interest rate swap contracts.

The accompanying notes are an integral part of the financial statements.

Statement of Assets and Liabilities

as of November 30, 2012 (Unaudited)
Assets
Investments in securities, at value (cost $5,171,775,644)	$	5,958,691,758
Cash		55,813
Receivable for investments sold		4,845,000
Receivable for Fund shares sold		14,488,529
Interest receivable		71,949,221
Unrealized appreciation on swap contracts		259,261
Other assets		184,603
Total assets		6,050,474,185
Liabilities
Payable for investments purchased — when-issued securities		26,165,193
Payable for Fund shares redeemed		3,386,595
Payable for floating rate notes issued		383,135,816
Distributions payable		2,525,799
Accrued management fee		1,461,157
Accrued Trustees' fees		17,470
Other accrued expenses and payables		3,385,364
Total liabilities		420,077,394
Net assets, at value	$	5,630,396,791
Net Assets Consist of
Undistributed net investment income		4,605,707
Net unrealized appreciation (depreciation) on: Investments		786,916,114
Swap contracts		259,261
Accumulated net realized gain (loss)		(101,499,031	)
Paid-in capital		4,940,114,740
Net assets, at value	$	5,630,396,791

The accompanying notes are an integral part of the financial statements.

Statement of Assets and Liabilities as of November 30, 2012 (Unaudited) (continued)
Net Asset Value
Class A Net Asset Value and redemption price per share ($2,398,014,020 ÷ 245,709,926 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized)	$	9.76
Maximum offering price per share (100 ÷ 97.25 of $9.76)	$	10.04
Class B Net Asset Value, offering and redemption price (subject to contingent deferred sales charge) per share ($3,342,489 ÷ 342,422 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized)	$	9.76
Class C Net Asset Value, offering and redemption price (subject to contingent deferred sales charge) per share ($303,292,993 ÷ 31,077,048 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized)	$	9.76
Class S Net Asset Value, offering and redemption priceper share ($2,735,787,631 ÷ 279,939,741 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized)	$	9.77
Institutional Class Net Asset Value, offering and redemption priceper share ($189,959,658 ÷ 19,456,001 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized)	$	9.76

The accompanying notes are an integral part of the financial statements.

Statement of Operations

for the six months ended November 30, 2012 (Unaudited)
Investment Income
Income: Interest	$	129,091,252
Expenses: Management fee		8,566,310
Administration fee		2,648,900
Services to shareholders		2,558,645
Distribution and service fees		4,021,086
Custodian fee		25,376
Professional fees		74,237
Reports to shareholders		81,740
Registration fees		105,957
Trustees' fees and expenses		98,210
Interest expense and fees on floating rate notes issued		1,364,192
Other		102,356
Total expenses		19,647,009
Net investment income		109,444,243
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from: Investments		(10,394,123	)
Swap contracts		(9,778,999	)
		(20,173,122	)
Change in net unrealized appreciation (depreciation) on: Investments		203,920,849
Swap contracts		17,961,788
		221,882,637
Net gain (loss)		201,709,515
Net increase (decrease) in net assets resulting from operations	$	311,153,758

The accompanying notes are an integral part of the financial statements.

Statement of Cash Flows

for the six months ended November 30, 2012 (Unaudited)
Increase (Decrease) in Cash: Cash Flows from Operating Activities
Net increase (decrease) in net assets resulting from operations	$	311,153,758
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided (used) by operating activities: Purchases of long-term investments		(1,156,172,708	)
Net amortization of premium/ (accretion of discount)		(10,363,587	)
Proceeds from sales and maturities of long-term investments		796,824,314
(Increase) decrease in interest receivable		(2,892,124	)
(Increase) decrease in other assets		(66,812	)
(Increase) decrease in receivable for investments sold		(2,575,000	)
Increase (decrease) in payable for investments purchased — when-issued securities		19,472,431
Increase (decrease) in other accrued expenses and payables		475,825
Change in unrealized (appreciation) depreciation on investments		(203,920,849	)
Change in unrealized (appreciation) depreciation on swaps contracts		(17,961,788	)
Net realized (gain) loss from investments		10,394,123
Cash provided (used) by operating activities	$	(255,632,417	)
Cash Flows from Financing Activities
Proceeds from shares sold		616,375,345
Payments for shares redeemed		(328,834,397	)
Distributions paid (net of reinvestment of distributions)		(31,916,282	)
Cash provided (used) by financing activities		255,624,666
Increase (decrease) in cash		(7,751	)
Cash at beginning of period		63,564
Cash at end of period	$	55,813
Supplemental Disclosure of Non-Cash Financing Activities
Reinvestment of distributions	$	77,329,380
Interest expense and fees on floating rate notes issued		(1,364,192	)

The accompanying notes are an integral part of the financial statements.

Statement of Changes in Net Assets

Increase (Decrease) in Net Assets	Six Months Ended November 30, 2012 (Unaudited)			Year Ended May 31, 2012
Operations: Net investment income	$	109,444,243		$	214,225,675
Net realized gain (loss)		(20,173,122	)		(53,935,626	)
Change in net unrealized appreciation (depreciation)		221,882,637			351,915,990
Net increase (decrease) in net assets resulting from operations		311,153,758			512,206,039
Distributions to shareholders from: Net investment income: Class A		(45,256,067	)		(88,251,470	)
Class B		(51,336	)		(135,652	)
Class C		(4,323,076	)		(6,706,011	)
Class S		(54,811,437	)		(112,146,159	)
Institutional Class		(3,460,163	)		(4,210,985	)
Net realized gains: Class A		—			(473,931	)
Class B		—			(888	)
Class C		—			(43,010	)
Class S		—			(582,403	)
Institutional Class		—			(24,028	)
Total distributions		(107,902,079	)		(212,574,537	)
Fund share transactions: Proceeds from shares sold		621,995,251			1,001,083,822
Reinvestment of distributions		77,329,380			142,962,372
Payments for shares redeemed		(328,357,333	)		(706,492,889	)
Net increase (decrease) in net assets from Fund share transactions		370,967,298			437,553,305
Increase (decrease) in net assets		574,218,977			737,184,807
Net assets at beginning of period		5,056,177,814			4,318,993,007
Net assets at end of period (including undistributed net investment income of $4,605,707 and $3,063,543, respectively)	$	5,630,396,791		$	5,056,177,814

The accompanying notes are an integral part of the financial statements.

Financial Highlights

				Years Ended May 31,
Class A	Six Months Ended 11/30/12 (Unaudited)			2012			2011			2010			2009			2008
Selected Per Share Data
Net asset value, beginning of period	$	9.40		$	8.82		$	9.08		$	8.68		$	8.85		$	8.99
Income from investment operations: Net investment income		.19			.41			.42			.43			.41			.40
Net realized and unrealized gain (loss)		.36			.58			(.26	)		.41			(.14	)		(.13	)
Total from investment operations		.55			.99			.16			.84			.27			.27
Less distributions from: Net investment income		(.19	)		(.41	)		(.42	)		(.43	)		(.41	)		(.40	)
Net realized gains		—			.	(.00)***		(.00	)***		(.01	)		(.03	)		(.01	)
Total distributions		(.19	)		(.41	)		(.42	)		(.44	)		(.44	)		(.41	)
Net asset value, end of period	$	9.76		$	9.40		$	8.82		$	9.08		$	8.68		$	8.85
Total Return (%)a		5.93	**		11.48			1.88			9.80			3.38	b		3.08	b
Ratios to Average Net Assets and Supplemental Data
Net assets, end of period ($ millions)		2,398			2,149			1,833			1,881			1,627			1,745
Ratio of expenses before expense reductions (including interest expense) (%)c		.79	*		.82			.83			.81			1.11			1.16
Ratio of expenses after expense reductions (including interest expense) (%)c		.79	*		.82			.83			.81			1.10			1.14
Ratio of expenses after expense reductions (excluding interest expense) (%)		.74	*		.76			.75			.74			.74			.73
Ratio of net investment income (%)		4.08	*		4.54			4.86			4.86			4.95			4.52
Portfolio turnover rate (%)		16	**		27			24			37			77			55
a Total return does not reflect the effect of any sales charges. b Total return would have been lower had certain expenses not been reduced. c Interest expense represents interest and fees on short-term floating rate notes issued in conjunction with inverse floating rate securities. Interest income from such transactions is included in income from investment operations. * Annualized ** Not annualized *** Amount is less than $.005.

				Years Ended May 31,
Class B	Six Months Ended 11/30/12 (Unaudited)			2012			2011			2010			2009			2008
Selected Per Share Data
Net asset value, beginning of period	$	9.40		$	8.82		$	9.08		$	8.68		$	8.86		$	8.99
Income from investment operations: Net investment income		.15			.33			.35			.35			.34			.34
Net realized and unrealized gain (loss)		.36			.58			(.26	)		.41			(.15	)		(.13	)
Total from investment operations		.51			.91			.09			.76			.19			.21
Less distributions from: Net investment income		(.15	)		(.33	)		(.35	)		(.35	)		(.34	)		(.33	)
Net realized gains		—			(.00	)***		(.00	)***		(.01	)		(.03	)		(.01	)
Total distributions		(.15	)		(.33	)		(.35	)		(.36	)		(.37	)		(.34	)
Net asset value, end of period	$	9.76		$	9.40		$	8.82		$	9.08		$	8.68		$	8.86
Total Return (%)a		5.45	**		10.57			1.05			8.90			2.45	b		2.42	b
Ratios to Average Net Assets and Supplemental Data
Net assets, end of period ($ millions)		3			3			4			6			7			12
Ratio of expenses before expense reductions (including interest expense) (%)c		1.70	*		1.63			1.64			1.64			1.92			1.98
Ratio of expenses after expense reductions (including interest expense) (%)c		1.70	*		1.63			1.64			1.64			1.89			1.89
Ratio of expenses after expense reductions (excluding interest expense) (%)		1.65	*		1.57			1.56			1.57			1.53			1.48
Ratio of net investment income (%)		3.17	*		3.74			4.04			4.03			4.16			3.77
Portfolio turnover rate (%)		16	**		27			24			37			77			55
a Total return does not reflect the effect of any sales charges. b Total return would have been lower had certain expenses not been reduced. c Interest expense represents interest and fees on short-term floating rate notes issued in conjunction with inverse floating rate securities. Interest income from such transactions is included in income from investment operations. * Annualized ** Not annualized *** Amount is less than $.005.

				Years Ended May 31,
Class C	Six Months Ended 11/30/12 (Unaudited)			2012			2011			2010			2009			2008
Selected Per Share Data
Net asset value, beginning of period	$	9.40		$	8.81		$	9.08		$	8.68		$	8.85		$	8.99
Income from investment operations: Net investment income		.16			.34			.35			.36			.34			.34
Net realized and unrealized gain (loss)		.36			.59			(.27	)		.41			(.14	)		(.13	)
Total from investment operations		.52			.93			.08			.77			.20			.21
Less distributions from: Net investment income		(.16	)		(.34	)		(.35	)		(.36	)		(.34	)		(.34	)
Net realized gains		—			(.00	)***		(.00	)***		(.01	)		(.03	)		(.01	)
Total distributions		(.16	)		(.34	)		(.35	)		(.37	)		(.37	)		(.35	)
Net asset value, end of period	$	9.76		$	9.40		$	8.81		$	9.08		$	8.68		$	8.85
Total Return (%)a		5.53	**		10.77			.98			8.98			2.61	b		2.32	b
Ratios to Average Net Assets and Supplemental Data
Net assets, end of period ($ millions)		303			237			143			121			59			32
Ratio of expenses before expense reductions (including interest expense) (%)c		1.57	*		1.59			1.61			1.60			1.88			1.92
Ratio of expenses after expense reductions (including interest expense) (%)c		1.57	*		1.59			1.61			1.60			1.87			1.90
Ratio of expenses after expense reductions (excluding interest expense) (%)		1.52	*		1.53			1.53			1.53			1.52			1.49
Ratio of net investment income (%)		3.30	*		3.76			4.08			4.07			4.18			3.76
Portfolio turnover rate (%)		16	**		27			24			37			77			55
a Total return does not reflect the effect of any sales charges. b Total return would have been lower had certain expenses not been reduced. c Interest expense represents interest and fees on short-term floating rate notes issued in conjunction with inverse floating rate securities. Interest income from such transactions is included in income from investment operations. * Annualized ** Not annualized *** Amount is less than $.005.

				Years Ended May 31,
Class S	Six Months Ended 11/30/12 (Unaudited)			2012			2011			2010			2009			2008
Selected Per Share Data
Net asset value, beginning of period	$	9.41		$	8.83		$	9.09		$	8.69		$	8.87		$	9.00
Income from investment operations: Net investment income		.20			.42			.44			.44			.43			.42
Net realized and unrealized gain (loss)		.36			.58			(.26	)		.41			(.15	)		(.12	)
Total from investment operations		.56			1.00			.18			.85			.28			.30
Less distributions from: Net investment income		(.20	)		(.42	)		(.44	)		(.44	)		(.43	)		(.42	)
Net realized gains		—			(.00	)***		(.00	)***		(.01	)		(.03	)		(.01	)
Total distributions		(.20	)		(.42	)		(.44	)		(.45	)		(.46	)		(.43	)
Net asset value, end of period	$	9.77		$	9.41		$	8.83		$	9.09		$	8.69		$	8.87
Total Return (%)		6.02	**		11.67			2.07			10.00			3.48	a		3.42	a
Ratios to Average Net Assets and Supplemental Data
Net assets, end of period ($ millions)		2,736			2,549			2,301			2,081			1,818			1,873
Ratio of expenses before expense reductions (including interest expense) (%)b		.62	*		.64			.64			.62			.90			.95
Ratio of expenses after expense reductions (including interest expense) (%)b		.62	*		.64			.64			.62			.89			.93
Ratio of expenses after expense reductions (excluding interest expense) (%)		.57	*		.58			.56			.55			.54			.52
Ratio of net investment income (%)		4.25	*		4.72			5.05			5.05			5.16			4.74
Portfolio turnover rate (%)		16	**		27			24			37			77			55
a Total return would have been lower had certain expenses not been reduced. b Interest expense represents interest and fees on short-term floating rate notes issued in conjunction with inverse floating rate securities. Interest income from such transactions is included in income from investment operations. * Annualized ** Not annualized *** Amount is less than $.005.

				Years Ended May 31,
Institutional Class	Six Months Ended 11/30/12 (Unaudited)			2012			2011			2010			2009			2008
Selected Per Share Data
Net asset value, beginning of period	$	9.40		$	8.82		$	9.08		$	8.68		$	8.85		$	8.99
Income from investment operations: Net investment income		.20			.43			.44			.45			.43			.43
Net realized and unrealized gain (loss)		.36			.58			(.26	)		.41			(.14	)		(.13	)
Total from investment operations		.56			1.01			.18			.86			.29			.30
Less distributions from: Net investment income		(.20	)		(.43	)		(.44	)		(.45	)		(.43	)		(.43	)
Net realized gains		—			(.00	)***		(.00	)***		(.01	)		(.03	)		(.01	)
Total distributions		(.20	)		(.43	)		(.44	)		(.46	)		(.46	)		(.44	)
Net asset value, end of period	$	9.76		$	9.40		$	8.82		$	9.08		$	8.68		$	8.85
Total Return (%)		6.06	**		11.79			2.13			10.09			3.61	a		3.35
Ratios to Average Net Assets and Supplemental Data
Net assets, end of period ($ millions)		190			117			38			36			6			5
Ratio of expenses before expense reductions (including interest expense) (%)b		.56	*		.56			.59			.57			.90			.90
Ratio of expenses after expense reductions (including interest expense) (%)b		.56	*		.56			.59			.57			.89			.90
Ratio of expenses after expense reductions (excluding interest expense) (%)		.51	*		.50			.51			.50			.54			.49
Ratio of net investment income (%)		4.32	*		4.78			5.09			5.09			5.16			4.77
Portfolio turnover rate (%)		16	**		27			24			37			77			55
a Total returns would have been lower had certain expenses not been reduced. b Interest expense represents interest and fees on short-term floating rate notes issued in conjunction with inverse floating rate securities. Interest income from such transactions is included in income from investment operations. * Annualized ** Not annualized *** Amount is less than $.005.

Notes to Financial Statements (Unaudited)

A. Organization and Significant Accounting Policies

DWS Managed Municipal Bond Fund (the "Fund") is a diversified series of DWS Municipal Trust (the "Trust"), which is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company organized as a Massachusetts business trust.

The Fund offers multiple classes of shares which provide investors with different purchase options. Class A shares are offered to investors subject to an initial sales charge. Class B shares of the Fund are closed to new purchases, except exchanges or the reinvestment of dividends or other distributions. Class B shares were offered to investors without an initial sales charge and are subject to higher ongoing expenses than Class A shares and a contingent deferred sales charge payable upon certain redemptions. Class B shares automatically convert to Class A shares six years after issuance. Class C shares are offered to investors without an initial sales charge but are subject to higher ongoing expenses than Class A shares and a contingent deferred sales charge payable upon certain redemptions within one year of purchase. Class C shares do not automatically convert into another class. Institutional Class shares are offered to a limited group of investors, are not subject to initial or contingent deferred sales charges and have lower ongoing expenses than other classes. Class S shares are not subject to initial or contingent deferred sales charges and are generally not available to new investors except under certain circumstances.

Investment income, realized and unrealized gains and losses and certain fund-level expenses and expense reductions, if any, are borne pro rata on the basis of relative net assets by the holders of all classes of shares, except that each class bears certain expenses unique to that class such as distribution and services fees, services to shareholders and certain other class-specific expenses. Differences in class-level expenses may result in payment of different per share dividends by class. All shares of the Fund have equal rights with respect to voting subject to class-specific arrangements.

The Fund's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates. Actual results could differ from those estimates. The policies described below are followed consistently by the Fund in the preparation of its financial statements.

Security Valuation. Investments are stated at value determined as of the close of regular trading on the New York Stock Exchange on each day the exchange is open for trading.

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, and credit risk). Level 3 includes significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments). The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

Municipal debt securities are valued at prices supplied by independent pricing services approved by the Fund's Board, whose valuations are intended to reflect the mean between the bid and asked prices. If the pricing services are unable to provide valuations, the securities are valued at the mean of the most recent bid and asked quotations or evaluated prices, as applicable, obtained from one or more broker-dealers. Such services may use various pricing techniques which take into account appropriate factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as broker quotes. These securities are generally categorized as Level 2.

Swap contracts are valued daily based upon prices supplied by a Board approved pricing vendor, if available, and otherwise are valued at the price provided by the broker-dealer. Swap contracts are generally categorized as Level 2.

Securities and other assets for which market quotations are not readily available or for which the above valuation procedures are deemed not to reflect fair value are valued in a manner that is intended to reflect their fair value as determined in accordance with procedures approved by the Board and are generally categorized as Level 3. In accordance with the Fund's valuation procedures, factors used in determining value may include, but are not limited to, the type of the security; the size of the holding; the initial cost of the security; the existence of any contractual restrictions on the security's disposition; the price and extent of public trading in similar securities of the issuer or of comparable companies; quotations or evaluated prices from broker-dealers and/or pricing services; information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities); an analysis of the company's or issuer's financial statements; an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold and with respect to debt securities; the maturity, coupon, creditworthiness, currency denomination and the movement of the market in which the security is normally traded. The value determined under these procedures may differ from published values for the same securities.

Disclosure about the classification of fair value measurements is included in a table following the Fund's Investment Portfolio.

New Accounting Pronouncement. In December 2011, Accounting Standards Update 2011-11 (ASU 2011-11), Disclosures about Offsetting Assets and Liabilities, was issued and is effective for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. ASU 2011-11 is intended to enhance disclosure requirements on the offsetting of financial assets and liabilities. Management is currently evaluating the application of ASU 2011-11 and its impact, if any, on the Fund's financial statements.

Inverse Floaters. The Fund invests in inverse floaters. Inverse floaters are debt instruments with a weekly floating rate of interest that bears an inverse relationship to changes in the short-term interest rate market. Inverse floaters are created by depositing a fixed-rate municipal bond into a special purpose trust (the "Trust"). In turn the Trust issues a short-term floating rate note and an inverse floater. The income stream from the underlying bond in the Trust is divided between the floating rate note and the inverse floater. The income provided by the inverse floater bears an inverse relationship with the short-term rate paid to the floating rate note holder. The short-term floating rate note is issued in a face amount equal to some fraction of the underlying bond's par amount and is paid to a third party, usually a tax-exempt money market fund, at rates that generally reset weekly. The inverse floater earns all of the interest from the underlying fixed-rate bond less the amount of interest paid on the floating rate note and the expenses of the Trust. The inverse floater represents an investment in the underlying bond on a leveraged basis; the Fund bears all of the price risk of the underlying bond in the Trust and receives all the benefits from any potential appreciation of the underlying bond's value. The floating rate notes issued by the Trust are valued at cost, which approximates fair value.

By holding the inverse floater, the Fund has the right to collapse the Trust by causing the holders of the floating rate instrument to tender their notes at par and have the broker transfer the underlying bond to the Fund. The floating rate note holder can also elect to tender the note for redemption at par at each reset date. The Fund accounts for these transactions as a form of secured borrowing, by reflecting the value of the underlying bond in the investments of the Fund and the amount owed to the floating rate note holder as a liability under the caption "Payable for floating rate notes issued" in the Statement of Assets and Liabilities. Income earned on the underlying bond is included in interest income, and interest paid on the floaters and the expenses of the Trust are included in "Interest expense and fees on floating rate notes issued" in the Statement of Operations.

The Fund may enter into shortfall and forbearance agreements by which the Fund agrees to reimburse the Trust, in certain circumstances, for the difference between the liquidation value of the underlying bond held by the Trust and the liquidation value of the floating rate notes plus any shortfalls in interest cash flows. This could potentially expose the Fund to losses in excess of the value of the Fund's inverse floater investments. In addition, the value of inverse floaters may decrease significantly when interest rates increase. The market for inverse floaters may be more volatile and less liquid than other municipal bonds of comparable maturity. The Trust could be terminated outside of the Fund's control, resulting in a reduction of leverage and disposal of portfolio investments at inopportune times and prices. Investments in inverse floaters generally involve greater risk than in an investment in fixed-rate bonds.

The weighted average outstanding daily balance of the floating rate notes issued during the six months ended November 30, 2012 was $383,135,816, with a weighted average interest rate of 0.71%.

When-Issued/Delayed Delivery Securities. The Fund may purchase securities with delivery or payment to occur at a later date beyond the normal settlement period. At the time the Fund enters into a commitment to purchase a security, the transaction is recorded and the value of the transaction is reflected in the net asset value. The price of such security and the date when the security will be delivered and paid for are fixed at the time the transaction is negotiated. The value of the security may vary with market fluctuations. At the time the Fund enters into a purchase transaction it is required to segregate cash or other liquid assets at least equal to the amount of the commitment.

Certain risks may arise upon entering into when-issued or delayed delivery transaction from the potential inability of counterparties to meet the terms of their contracts or if the issuer does not issue the securities due to political, economic, or other factors. Additionally, losses may arise due to changes in the value of the underlying securities.

Federal Income Taxes. The Fund's policy is to comply with the requirements of the Internal Revenue Code, as amended, which are applicable to regulated investment companies, and to distribute all of its taxable and tax-exempt income to its shareholders.

Under the Regulated Investment Company Modernization Act of 2010, net capital losses may be carried forward indefinitely, and their character is retained as short-term and/or long-term. Previously, net capital losses were carried forward for eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.

At May 31, 2012, the Fund had net tax basis capital loss carryforwards of approximately $83,294,000, including $1,746,000 of pre-enactment losses which may be applied against any realized net taxable capital gains of each succeeding year until fully utilized or until May 31, 2019, the expiration date, whichever occurs first, and approximately $81,548,000 of post-enactment short-term losses which may be applied against realized net taxable capital gains indefinitely.

The Fund has reviewed the tax positions for the open tax years as of May 31, 2012 and has determined that no provision for income tax is required in the Fund's financial statements. The Fund's federal tax returns for the prior three fiscal years remain open subject to examination by the Internal Revenue Service.

Distribution of Income and Gains. Net investment income of the Fund is declared as a daily dividend and is distributed to shareholders monthly. Net realized gains from investment transactions, in excess of available capital loss carryforwards, would be taxable to the Fund if not distributed, and, therefore, will be distributed to shareholders at least annually.

The timing and characterization of certain income and capital gain distributions are determined annually in accordance with federal tax regulations which may differ from accounting principles generally accepted in the United States of America. These differences primarily relate to investments in swap contracts, certain securities sold at a loss and accretion of market discount on debt securities. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. Accordingly, the Fund may periodically make reclassifications among certain of its capital accounts without impacting the net asset value of the Fund.

The tax character of current year distributions will be determined at the end of the current fiscal year.

Expenses. Expenses of the Trust arising in connection with a specific fund are allocated to that fund. Other Trust expenses which cannot be directly attributed to a fund are apportioned among the funds in the Trust based upon the relative net assets or other appropriate measures.

Contingencies. In the normal course of business, the Fund may enter into contracts with service providers that contain general indemnification clauses. The Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet been made. However, based on experience, the Fund expects the risk of loss to be remote.

Other. Investment transactions are accounted for on a trade date plus one basis for daily net asset value calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is recorded on the accrual basis. Realized gains and losses from investment transactions are recorded on an identified cost basis. All premiums and discounts are amortized/accreted for financial reporting purposes, with the exception of securities in default of principal.

Statement of Cash Flows. Information on financial transactions which have been settled through the receipt and disbursement of cash is presented in the Statement of Cash Flows. The cash amount shown in the Statement of Cash Flows represents the cash position at the Fund's custodian bank at November 30, 2012.

B. Derivative Instruments

Interest Rate Swap Contracts. For the six months ended November 30, 2012, the Fund invested into interest rate swap contracts to manage the duration of the Investment Portfolio. The use of interest rate swaps is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio security transactions. In an interest rate swap, the Fund agrees to pay to the other party to the interest rate swap (which is known as the "counterparty") a fixed rate payment in exchange for the counterparty agreeing to pay to the Fund a variable rate payment, or the Fund agrees to receive from the counterparty a fixed rate payment in exchange for the counterparty agreeing to receive from the Fund a variable rate payment, the accruals for which would begin at a specified date in the future (the "effective date"). The payment obligations are based on the notional amount of the swap. Certain risks may arise when entering into swap transactions including counterparty default, liquidity or unfavorable changes in interest rates. In connection with these agreements, securities and or cash may be identified as collateral in accordance with the terms of the swap agreements to provide assets of value and recourse in the event of default. The maximum counterparty credit risk is the net present value of the cash flows to be received from or paid to the counterparty over the term of the interest rate swap contract, to the extent that this amount is beneficial to the Fund, in addition to any related collateral posted to the counterparty by the Fund. This risk may be partially reduced by a master netting arrangement between the Fund and the counterparty. The Fund generally intends, but is not obligated, to terminate its interest rate swaps before the effective date. Payments received or made are recorded as realized gain or loss in the Statement of Operations. The value of the swap is adjusted daily based upon a price supplied by a Board approved pricing vendor and the change in value is recorded as unrealized appreciation or depreciation. An upfront payment, if any, made by the Fund is recorded as an asset in the Statement of Assets and Liabilities. An upfront payment, if any, received by the Fund is recorded as a liability in the Statement of Assets and Liabilities. Payments received or made at the end of the measurement period are recorded as realized gain or loss in the Statement of Operations.

A summary of the open interest rate swap contracts as of November 30, 2012, is included in a table following the Fund's Investment Portfolio. For the six months ended November 30, 2012, the investment in interest rate swap contracts had a total notional amount generally indicative of a range from $10,450,000 to $255,950,000.

The following tables summarize the value of the Fund's derivative instruments held as of November 30, 2012 and the related location in the accompanying Statements of Assets and Liabilities presented by the primary underlying risk exposure:

Asset Derivative	Swap Contracts
Interest Rate Contracts (a)	$	259,261

The above derivative is located in the following Statement of Assets and Liabilities account:

(a) Unrealized appreciation on swap contracts

Additionally, the amount of unrealized and realized gains and losses on derivative instruments recognized in Fund earnings during the period ended November 30, 2012 and the related location in the accompanying Statement of Operations is summarized in the following tables by primary underlying risk exposure:

Realized Gain (Loss)	Swap Contracts
Interest Rate Contracts (a)	$	(9,778,999	)

The above derivative is located in the following Statement of Operations account:

(a) Net realized gain (loss) from swap contracts

Change in Net Unrealized Appreciation (Depreciation)	Swap Contracts
Interest Rate Contracts (a)	$	17,961,788

The above derivative is located in the following Statement of Operations account:

(a) Change in net unrealized appreciation (depreciation) on swap contracts

C. Purchases and Sales of Securities

During the six months ended November 30, 2012, purchases and sales of investment securities (excluding short-term investments) aggregated $1,156,172,708 and $796,824,314, respectively.

D. Related Parties

Management Agreement. Under the Investment Management Agreement with Deutsche Investment Management Americas Inc. ("DIMA" or the "Advisor"), an indirect, wholly owned subsidiary of Deutsche Bank AG, the Advisor directs the investments of the Fund in accordance with its investment objectives, policies and restrictions. The Advisor determines the securities, instruments and other contracts relating to investments to be purchased, sold or entered into by the Fund.

Under the Investment Management Agreement with the Advisor, the Fund pays a monthly management fee based on the Fund's average daily net assets, computed and accrued daily and payable monthly, at the following annual rates:

First $250 million of the Fund's average daily net assets	.365	%
Next $750 million of such net assets	.345	%
Next $1.5 billion of such net assets	.325	%
Next $2.5 billion of such net assets	.315	%
Next $2.5 billion of such net assets	.295	%
Next $2.5 billion of such net assets	.275	%
Next $2.5 billion of such net assets	.255	%
Over $12.5 billion of such net assets	.235	%

For the six months ended November 30, 2012, the fee pursuant to the Investment Management Agreement was equivalent to an annualized effective rate of 0.32% of the Fund's average daily net assets.

Administration Fee. Pursuant to an Administrative Services Agreement, DIMA provides most administrative services to the Fund. For all services provided under the Administrative Services Agreement, the Fund pays the Advisor a fee ("Administration Fee") of 0.10% of the Fund's average daily net assets, computed and accrued daily and payable monthly. For the six months ended November 30, 2012, the Administration Fee was $2,648,900, of which $453,515 is unpaid.

Service Provider Fees. DWS Investments Service Company ("DISC"), an affiliate of the Advisor, is the transfer agent, dividend-paying agent and shareholder service agent of the Fund. Pursuant to a sub-transfer agency agreement between DISC and DST Systems, Inc. ("DST"), DISC has delegated certain transfer agent, dividend-paying agent and shareholder service agent functions to DST. DISC compensates DST out of the shareholder servicing fee it receives from the Fund. For the six months ended November 30, 2012, the amounts charged to the Fund by DISC were as follows:

Services to Shareholders	Total Aggregated		Unpaid at November 30, 2012
Class A	$	161,955	$	81,638
Class B		732		409
Class C		12,017		5,145
Class S		363,377		186,930
Institutional Class		2,562		1,156
	$	540,643	$	275,278

Distribution and Service Fees. Under the Fund's Class B and Class C 12b-1 Plans, DWS Investments Distributors, Inc. ("DIDI"), an affiliate of the Advisor, receives a fee ("Distribution Fee") of 0.75% of average daily net assets of Class B and C shares. In accordance with the Fund's Underwriting and Distribution Services Agreement, DIDI enters into related selling group agreements with various firms at various rates for sales of Class B and C shares. For the six months ended November 30, 2012, the Distribution Fee was as follows:

Distribution Fee	Total Aggregated		Unpaid at November 30, 2012
Class B	$	12,370	$	2,040
Class C		999,575		179,979
	$	1,011,945	$	182,019

In addition, DIDI provides information and administrative services for a fee ("Service Fee") to Class A, B and C shareholders at an annual rate of up to 0.25% of average daily net assets for each such class. DIDI in turn has various agreements with financial services firms that provide these services and pays these fees based upon the assets of shareholder accounts the firms service. For the six months ended November 30, 2012, the Service Fee was as follows:

Service Fee	Total Aggregated		Unpaid at November 30, 2012		Annualized Effective Rate
Class A	$	2,672,149	$	979,515		.24	%
Class B		4,078		1,435		.25	%
Class C		332,914		120,085		.25	%
	$	3,009,141	$	1,101,035

Underwriting Agreement and Contingent Deferred Sales Charge. DIDI is the principal underwriter for the Fund. Underwriting commissions paid to DIDI in connection with the distribution of Class A shares for the six months ended November 30, 2012 aggregated $160,513.

In addition, DIDI receives any contingent deferred sales charge ("CDSC") from Class B share redemptions occurring within six years of purchase and Class C share redemptions occurring within one year of purchase. There is no such charge upon redemption of any share appreciation or reinvested dividends. The CDSC is based on declining rates, ranging from 4% to 1% for Class B and 1% for Class C, of the value of the shares redeemed. For the six months ended November 30, 2012, the CDSC for Class B and C shares aggregated $1,215 and $28,179, respectively. A deferred sales charge of up to 0.50% is assessed on certain redemptions of Class A shares. For the six months ended November 30, 2012, DIDI received $16,809 for Class A shares.

Typesetting and Filing Service Fees. Under an agreement with DIMA, DIMA is compensated for providing typesetting and certain regulatory filing services to the Fund. For the six months ended November 30, 2012, the amount charged to the Fund by DIMA included in the Statement of Operations under "reports to shareholders" aggregated $12,444, of which $8,276 is unpaid.

Trustees' Fees and Expenses. The Fund paid retainer fees to each Trustee not affiliated with the Advisor, plus specified amounts to the Board Chairperson and to each committee Chairperson.

E. Line of Credit

The Fund and other affiliated funds (the "Participants") share in a $375 million revolving credit facility provided by a syndication of banks. The Fund may borrow for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. The Participants are charged an annual commitment fee which is allocated based on net assets, among each of the Participants. Interest is calculated at a rate per annum equal to the sum of the Federal Funds Rate plus 1.25 percent plus, if LIBOR exceeds the Federal Funds Rate, the amount of such excess. The Fund may borrow up to a maximum of 33 percent of its net assets under the agreement. The Fund had no outstanding loans at November 30, 2012.

F. Share Transactions

The following table summarizes share and dollar activity in the Fund:

	Six Months Ended November 30, 2012						Year Ended May 31, 2012
	Shares			Dollars			Shares			Dollars
Shares sold
Class A		25,936,328		$	246,641,553			40,664,159		$	370,789,938
Class B		8,881			84,364			8,787			80,838
Class C		7,300,034			69,420,621			11,913,160			108,777,602
Class S		23,718,165			225,892,648			44,986,024			410,020,474
Institutional Class		8,456,949			79,956,065			12,280,424			111,414,970
				$	621,995,251					$	1,001,083,822
Shares issued to shareholders in reinvestment of distributions
Class A		3,961,329		$	37,706,824			7,835,641		$	71,302,377
Class B		4,901			46,634			13,258			120,422
Class C		351,448			3,346,389			572,413			5,216,355
Class S		3,462,240			32,995,226			6,867,551			62,576,708
Institutional Class		339,413			3,234,307			409,859			3,746,510
				$	77,329,380					$	142,962,372
Shares redeemed
Class A		(12,824,852	)	$	(121,907,632	)		(27,833,329	)	$	(253,023,678	)
Class B		(36,315	)		(342,666	)		(129,115	)		(1,164,342	)
Class C		(1,830,830	)		(17,407,153	)		(3,482,289	)		(31,588,550	)
Class S		(18,038,481	)		(171,503,175	)		(41,692,110	)		(379,578,940	)
Institutional Class		(1,812,617	)		(17,196,707	)		(4,488,471	)		(41,137,379	)
				$	(328,357,333	)				$	(706,492,889	)
Net increase (decrease)
Class A		17,072,805		$	162,440,745			20,666,471		$	189,068,637
Class B		(22,533	)		(211,668	)		(107,070	)		(963,082	)
Class C		5,820,652			55,359,857			9,003,284			82,405,407
Class S		9,141,924			87,384,699			10,161,465			93,018,242
Institutional Class		6,983,745			65,993,665			8,201,812			74,024,101
				$	370,967,298					$	437,553,305

Information About Your Fund's Expenses

As an investor of the Fund, you incur two types of costs: ongoing expenses and transaction costs. Ongoing expenses include management fees, distribution and service (12b-1) fees and other Fund expenses. Examples of transaction costs include sales charges (loads) and account maintenance fees, which are not shown in this section. The following tables are intended to help you understand your ongoing expenses (in dollars) of investing in the Fund and to help you compare these expenses with the ongoing expenses of investing in other mutual funds. The example in the table is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period (June 1, 2012 to November 30, 2012).

The tables illustrate your Fund's expenses in two ways:

•Actual Fund Return. This helps you estimate the actual dollar amount of ongoing expenses (but not transaction costs) paid on a $1,000 investment in the Fund using the Fund's actual return during the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the "Expenses Paid per $1,000" line under the share class you hold.

•Hypothetical 5% Fund Return. This helps you to compare your Fund's ongoing expenses (but not transaction costs) with those of other mutual funds using the Fund's actual expense ratio and a hypothetical rate of return of 5% per year before expenses. Examples using a 5% hypothetical fund return may be found in the shareholder reports of other mutual funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.

Please note that the expenses shown in these tables are meant to highlight your ongoing expenses only and do not reflect any transaction costs. The "Expenses Paid per $1,000" line of the tables is useful in comparing ongoing expenses only and will not help you determine the relative total expense of owning different funds. Subject to certain exceptions, an account maintenance fee of $20.00 assessed once per calendar year for Classes A, B, C and S shares may apply for accounts with balances less than $10,000. This fee is not included in these tables. If it was, the estimate of expenses paid for Classes A, B, C and S shares during the period would be higher, and account value during the period would be lower, by this amount.

Expenses and Value of a $1,000 Investment for the six months ended November 30, 2012 (Unaudited)
Actual Fund Return	Class A		Class B		Class C		Class S		Institutional Class
Beginning Account Value 6/1/12	$	1,000.00	$	1,000.00	$	1,000.00	$	1,000.00	$	1,000.00
Ending Account Value 11/30/12	$	1,059.30	$	1,054.50	$	1,055.30	$	1,060.20	$	1,060.60
Expenses Paid per $1,000*	$	4.08	$	8.76	$	8.09	$	3.20	$	2.89
Hypothetical 5% Fund Return	Class A		Class B		Class C		Class S		Institutional Class
Beginning Account Value 6/1/12	$	1,000.00	$	1,000.00	$	1,000.00	$	1,000.00	$	1,000.00
Ending Account Value 11/30/12	$	1,021.11	$	1,016.55	$	1,017.20	$	1,021.96	$	1,022.26
Expenses Paid per $1,000*	$	4.00	$	8.59	$	7.94	$	3.14	$	2.84

* Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 183 (the number of days in the most recent six-month period), then divided by 365.

Annualized Expense Ratios	Class A	Class B	Class C	Class S	Institutional Class
DWS Managed Municipal Bond Fund†	.79%	1.70%	1.57%	.62%	.56%

† Includes interest expense and fees on short-term floating rate notes issued in conjunction with inverse floating rate securities of 0.05% for each class.

For more information, please refer to the Fund's prospectus.

Investment Management Agreement Approval

The Board of Trustees approved the renewal of DWS Managed Municipal Bond Fund's investment management agreement (the "Agreement") with Deutsche Investment Management Americas Inc. ("DWS") in September 2012.

In terms of the process that the Board followed prior to approving the Agreement, shareholders should know that:

• In September 2012, all of the Fund's Trustees were independent of DWS and its affiliates.

• The Trustees met frequently during the past year to discuss fund matters and dedicated a substantial amount of time to contract review matters. Over the course of several months, the Board's Contract Committee, in coordination with the Board's Fixed Income and Quant Oversight Committee, reviewed comprehensive materials received from DWS, independent third parties and independent counsel. These materials included an analysis of the Fund's performance, fees and expenses, and profitability compiled by the Fund's independent fee consultant. The Board also received extensive information throughout the year regarding performance of the Fund.

• The Independent Trustees regularly meet privately with their independent counsel to discuss contract review and other matters. In addition, the Independent Trustees were also advised by the Fund's independent fee consultant in the course of their review of the Fund's contractual arrangements and considered a comprehensive report prepared by the independent fee consultant in connection with their deliberations (the "IFC Report").

• In connection with reviewing the Agreement, the Board also reviewed the terms of the Fund's Rule 12b-1 plan, distribution agreement, administrative services agreement, transfer agency agreement and other material service agreements.

• Based on its evaluation of the information provided, the Contract Committee presented its findings and recommendations to the Board. The Board then reviewed the Contract Committee's findings and recommendations.

In connection with the contract review process, the Contract Committee and the Board considered the factors discussed below, among others. The Board also considered that DWS and its predecessors have managed the Fund since its inception, and the Board believes that a long-term relationship with a capable, conscientious advisor is in the best interests of the Fund. The Board considered, generally, that shareholders chose to invest or remain invested in the Fund knowing that DWS managed the Fund, and that the Agreement was approved by the Fund's shareholders. DWS is part of Deutsche Bank, a major global banking institution that is engaged in a wide range of financial services. The Board believes that there are advantages to being part of a global asset management business that offers a wide range of investing expertise and resources, including hundreds of portfolio managers and analysts with research capabilities in many countries throughout the world.

As part of the contract review process, the Board carefully considered the fees and expenses of each DWS fund overseen by the Board in light of the fund's performance. In many cases, this led to a negotiation with DWS of lower expense caps for the coming year than had previously been in place. As part of these negotiations, the Board indicated that it would consider relaxing these new lower caps in future years following sustained improvements in performance, among other considerations.

In June 2012, Deutsche Bank ("DB"), DWS's parent company, announced that DB's new management team had concluded the strategic review of its global asset management business announced in late 2011 by DB's prior management team, and would combine its Asset Management (of which DWS is a part) and Wealth Management divisions. Prior to approving the investment management agreements, the Independent Trustees were apprised of the expected management and structure of the new combined Asset & Wealth Management division ("AWM") and DWS. DB also advised the Independent Trustees that the U.S. asset management business is a critical and integral part of DB and AWM, and that DB would be reinvesting a significant portion of the substantial savings it expects to realize by combining its Asset Management and Wealth Management divisions into a combined AWM division, including enhancements to its investment capabilities. DB also confirmed its commitment to maintaining strong legal and compliance groups within the combined division.

While shareholders may focus primarily on fund performance and fees, the Fund's Board considers these and many other factors, including the quality and integrity of DWS's personnel and such other issues as back-office operations, fund valuations, and compliance policies and procedures.

Nature, Quality and Extent of Services. The Board considered the terms of the Agreement, including the scope of advisory services provided under the Agreement. The Board noted that, under the Agreement, DWS provides portfolio management services to the Fund and that, pursuant to a separate administrative services agreement, DWS provides administrative services to the Fund. The Board considered the experience and skills of senior management and investment personnel, the resources made available to such personnel, the ability of DWS to attract and retain high-quality personnel, and the organizational depth and stability of DWS. The Board reviewed the Fund's performance over short-term and long-term periods and compared those returns to various agreed-upon performance measures, including market indices and a peer universe compiled by the independent fee consultant using information supplied by Lipper Inc. ("Lipper"), an independent fund data service. The Board also noted that it has put into place a process of identifying "Focus Funds" (e.g., funds performing poorly relative to their benchmark or a peer universe compiled by an independent fund data service), and receives more frequent reporting and information from DWS regarding such funds, along with DWS's remedial plans to address underperformance. The Board believes this process is an effective manner of identifying and addressing underperforming funds. Based on the information provided, the Board noted that for the one-, three- and five-year periods ended December 31, 2011, the Fund's performance (Class A shares) was in the 4th quartile, 2nd quartile and 1st quartile, respectively, of the applicable Lipper universe (the 1st quartile being the best performers and the 4th quartile being the worst performers). The Board also observed that the Fund has outperformed its benchmark in the three-year period and has underperformed its benchmark in the one- and five-year periods ended December 31, 2011. The Board noted the disappointing investment performance of the Fund in recent periods and continued to discuss with senior management of DWS the factors contributing to such underperformance and actions being taken to improve performance. The Board observed that the Fund had experienced improved relative performance during the first seven months of 2012.

Fees and Expenses. The Board considered the Fund's investment management fee schedule, operating expenses and total expense ratios, and comparative information provided by Lipper and the independent fee consultant regarding investment management fee rates paid to other investment advisors by similar funds (1st quartile being the most favorable and 4th quartile being the least favorable). With respect to management fees paid to other investment advisors by similar funds, the Board noted that the contractual fee rates paid by the Fund, which include a 0.10% fee paid to DWS under the Fund's administrative services agreement, were at the median (2nd quartile) of the applicable Lipper peer group (based on Lipper data provided as of December 31, 2011). The Board noted that the Fund's Class A shares total (net) operating expenses (excluding 12b-1 fees) were expected to be lower than the median (1st quartile) of the applicable Lipper expense universe (based on Lipper data provided as of December 31, 2011, and analyzing Lipper expense universe Class A (net) expenses less any applicable 12b-1 fees) ("Lipper Universe Expenses"). The Board also reviewed data comparing each share class's total (net) operating expenses to the applicable Lipper Universe Expenses. The Board considered the Fund's management fee rate as compared to fees charged by DWS and certain of its affiliates for comparable mutual funds and considered differences in fund and fee structures between the DWS Funds. The Board also considered how the Fund's total (net) operating expenses compared to the total (net) operating expenses of a more customized peer group selected by Lipper (based on such factors as asset size).

The information considered by the Board as part of its review of management fees included information regarding fees charged by DWS and its affiliates to similar institutional accounts and to similar funds offered primarily to European investors ("DWS Europe funds"), in each case as applicable. The Board observed that advisory fee rates for institutional accounts generally were lower than the management fees charged by similarly managed DWS U.S. mutual funds ("DWS Funds"), but also took note of the differences in services provided to DWS Funds as compared to institutional accounts. In the case of DWS Europe funds, the Board observed that fee rates for DWS Europe funds generally were higher than for similarly managed DWS Funds, but noted that differences in the types of services provided to DWS Funds relative to DWS Europe funds made it difficult to compare such fees.

On the basis of the information provided, the Board concluded that management fees were reasonable and appropriate in light of the nature, quality and extent of services provided by DWS.

Profitability. The Board reviewed detailed information regarding revenues received by DWS under the Agreement. The Board considered the estimated costs and pre-tax profits realized by DWS from advising the DWS Funds, as well as estimates of the pre-tax profits attributable to managing the Fund in particular. The Board also received information regarding the estimated enterprise-wide profitability of DWS and its affiliates with respect to all fund services in totality and by fund. The Board and the independent fee consultant reviewed DWS's methodology in allocating its costs to the management of the Fund. Based on the information provided, the Board concluded that the pre-tax profits realized by DWS in connection with the management of the Fund were not unreasonable. The Board also reviewed information regarding the profitability of certain similar investment management firms. The Board noted that while information regarding the profitability of such firms is limited (and in some cases is not necessarily prepared on a comparable basis), DWS and its affiliates' overall profitability with respect to the DWS fund complex (after taking into account distribution and other services provided to the funds by DWS and its affiliates) was lower than the overall profitability levels of many comparable firms for which such data was available.

Economies of Scale. The Board considered whether there are economies of scale with respect to the management of the Fund and whether the Fund benefits from any economies of scale. The Board noted that the Fund's management fee schedule includes fee breakpoints. The Board concluded that the Fund's fee schedule represents an appropriate sharing between the Fund and DWS of such economies of scale as may exist in the management of the Fund at current asset levels.

Other Benefits to DWS and Its Affiliates. The Board also considered the character and amount of other incidental benefits received by DWS and its affiliates, including any fees received by DWS for administrative services provided to the Fund and any fees received by an affiliate of DWS for distribution services. The Board also considered benefits to DWS related to brokerage and soft-dollar allocations, including allocating brokerage to pay for research generated by parties other than the executing broker dealers, which pertain primarily to funds investing in equity securities, along with the incidental public relations benefits to DWS related to DWS Funds advertising and cross-selling opportunities among DWS products and services. The Board concluded that management fees were reasonable in light of these fallout benefits.

Compliance. The Board considered the significant attention and resources dedicated by DWS to documenting and enhancing its compliance processes in recent years. The Board noted in particular (i) the experience and seniority of both DWS's chief compliance officer and the Fund's chief compliance officer; (ii) the large number of DWS compliance personnel; and (iii) the substantial commitment of resources by DWS and its affiliates to compliance matters.

Based on all of the information considered and the conclusions reached, the Board unanimously determined that the continuation of the Agreement is in the best interests of the Fund. In making this determination, the Board did not give particular weight to any single factor identified above. The Board considered these factors over the course of numerous meetings, certain of which were in executive session with only the Independent Trustees and their counsel present. It is possible that individual Trustees may have weighed these factors differently in reaching their individual decisions to approve the continuation of the Agreement.

Summary of Management Fee Evaluation by Independent Fee Consultant

September 17, 2012

Pursuant to an Order entered into by Deutsche Investment Management Americas and affiliates (collectively, "DeAM") with the Attorney General of New York, I, Thomas H. Mack, have been appointed the Independent Fee Consultant for the DWS Funds (formerly the DWS Scudder Funds). My duties include preparing an annual written evaluation of the management fees DeAM charges the Funds, considering among other factors the management fees charged by other mutual fund companies for like services, management fees DeAM charges other clients for like services, DeAM's costs of supplying services under the management agreements and related profit margins, possible economies of scale if a Fund grows larger, and the nature and quality of DeAM's services, including fund performance. This report summarizes my evaluation for 2012, including my qualifications, the evaluation process for each of the DWS Funds, consideration of certain complex-level factors, and my conclusions. I served in substantially the same capacity in 2007, 2008, 2009, 2010 and 2011.

Qualifications

For more than 35 years I have served in various professional capacities within the investment management business. I have held investment analysis and advisory positions, including securities analyst, portfolio strategist and director of investment policy with a large investment firm. I have also performed business management functions, including business development, financial management and marketing research and analysis.

Since 1991, I have been an independent consultant within the asset management industry. I have provided services to over 125 client organizations, including investment managers, mutual fund boards, product distributors and related organizations. Over the past ten years I have completed a number of assignments for mutual fund boards, specifically including assisting boards with management contract renewal.

I hold a Master of Business Administration degree, with highest honors, from Harvard University and Master of Science and Bachelor of Science (highest honors) degrees from the University of California at Berkeley. I am an independent director and audit committee financial expert for two closed-end mutual funds and have served in various leadership and financial oversight capacities with non-profit organizations.

Evaluation of Fees for each DWS Fund

My work focused primarily on evaluating, fund-by-fund, the fees charged to each of the 103 mutual fund portfolios in the DWS Fund family. For each Fund, I considered each of the key factors mentioned above, as well as any other relevant information. In doing so I worked closely with the Funds' Independent Directors in their annual contract renewal process, as well as in their approval of contracts for several new funds (documented separately).

In evaluating each Fund's fees, I reviewed comprehensive materials provided by or on behalf of DeAM, including expense information prepared by Lipper Analytical, comparative performance information, profitability data, manager histories, and other materials. I also accessed certain additional information from the Lipper and Morningstar databases and drew on my industry knowledge and experience.

To facilitate evaluating this considerable body of information, I prepared for each Fund a document summarizing the key data elements in each area as well as additional analytics discussed below. This made it possible to consider each key data element in the context of the others.

In the course of contract renewal, DeAM agreed to implement a number of fee and expense adjustments requested by the Independent Directors which will favorably impact future fees and expenses, and my evaluation includes the effects of these changes.

Fees and Expenses Compared with Other Funds

The competitive fee and expense evaluation for each fund focused on two primary comparisons:

The Fund's contractual management fee (the advisory fee plus the administration fee where applicable) compared with those of a group of typically 12-15 funds in the same Lipper investment category (e.g. Large Capitalization Growth) having similar distribution arrangements and being of similar size.

The Fund's total expenses compared with a broader universe of funds from the same Lipper investment category and having similar distribution arrangements.

These two comparisons provide a view of not only the level of the fee compared with funds of similar scale but also the total expense the Fund bears for all the services it receives, in comparison with the investment choices available in the Fund's investment category and distribution channel. The principal figure-of-merit used in these comparisons was the subject Fund's percentile ranking against peers.

DeAM's Fees for Similar Services to Others

DeAM provided management fee schedules for all of its US domiciled fund and non-fund investment management accounts in any of the investment categories where there is a DWS Fund. These similar products included the other DWS Funds, non-fund pooled accounts, institutional accounts and sub-advisory accounts. Using this information, I calculated for each Fund the fee that would be charged to each similar product, at the subject Fund's asset level.

Evaluating information regarding non-fund products is difficult because there are varying levels of services required for different types of accounts, with mutual funds generally requiring considerably more regulatory and administrative types of service as well as having more frequent cash flows than other types of accounts. Also, while mutual fund fees for similar fund products can be expected to be similar, there will be some differences due to different pricing conditions in different distribution channels (e.g. retail funds versus those used in variable insurance products), differences in underlying investment processes and other factors.

Costs and Profit Margins

DeAM provided a detailed profitability analysis for each Fund. After making some adjustments so that the presentation would be more comparable to the available industry figures, I reviewed profit margins from investment management alone, from investment management plus other fund services (excluding distribution) provided to the Funds by DeAM (principally shareholder services), and DeAM profits from all sources, including distribution. A later section comments on overall profitability.

Economies of Scale

Economies of scale — an expected decline in management cost per dollar of fund assets as fund assets grow — are very rarely quantified and documented because of inherent difficulties in collecting and analyzing relevant data. However, in virtually every investment category that I reviewed, larger funds tend to have lower fees and lower total expenses than smaller funds. To see how each DWS Fund compares with this industry observation, I reviewed:

The trend in Fund assets over the last five years and the accompanying trend in total expenses. This shows if the Fund has grown and, if so, whether total expense (management fees as well as other expenses) have declined as a percent of assets.

Whether the Fund has break-points in its management fee schedule, the extent of the fee reduction built into the schedule and the asset levels where the breaks take effect, and in the case of a sub-advised Fund how the Fund's break-points compare with those of the sub-advisory fee schedule.

How the Fund's contractual fee schedule compares with trends in the industry data. To accomplish this, I constructed a chart showing how actual latest-fiscal-year contractual fees of the Fund and of other similar funds relate to average fund assets, with the subject Fund's contractual fee schedule superimposed.

Quality of Service — Performance

The quality-of-service evaluation focused on investment performance, which is the principal result of the investment management service. Each Fund's performance was reviewed over the past 1, 3, 5 and 10 years, as applicable, and compared with that of other funds in the same investment category and with a suitable market index.

In addition, I calculated and reviewed risk-adjusted returns relative to an index of similar mutual funds' returns and a suitable market index. The risk-adjusted returns analysis provides a way of determining the extent to which the Fund's return comparisons are mainly the product of investment value-added (or lack thereof) or alternatively taking considerably more or less risk than is typical in its investment category.

I also received and considered the history of portfolio manager changes for each Fund, as this provided an important context for evaluating the performance results.

Complex-Level Considerations

While this evaluation was conducted mainly at the individual fund level, there are some issues relating to the reasonableness of fees that can alternatively be considered across the whole fund complex:

I reviewed DeAM's profitability analysis for all DWS Funds, with a view toward determining if the allocation procedures used were reasonable and how profit levels compared with public data for other investment managers.

I considered whether DeAM and affiliates receive any significant ancillary or "fallout" benefits that should be considered in interpreting the direct profitability results. These would be situations where serving as the investment manager of the Funds is beneficial to another part of the Deutsche Bank organization.

I considered how aggregated DWS Fund expenses had varied over the years, by asset class and in the context of trends in asset levels.

I considered how aggregated DWS Fund performance measures relative to appropriate peers had varied by asset class and over time.

I reviewed the structure of the DeAM organization, trends in staffing levels, and information on compensation of investment management and other professionals compared with industry data.

Findings

Based on the process and analysis discussed above, which included reviewing a wide range of information from management and external data sources and considering among other factors the fees DeAM charges other clients, the fees charged by other fund managers, DeAM's costs and profits associated with managing the Funds, economies of scale, possible fall-out benefits, and the nature and quality of services provided, in my opinion the management fees charged the DWS Funds are reasonable.

Thomas H. Mack

President, Thomas H. Mack & Co., Inc.

Account Management Resources

For More Information	The automated telephone system allows you to access personalized account information and obtain information on other DWS funds using either your voice or your telephone keypad. Certain account types within Classes A, B, C and S also have the ability to purchase, exchange or redeem shares using this system. For more information, contact your financial advisor. You may also access our automated telephone system or speak with a DWS Investments representative by calling: (800) 728-3337
Web Site	www.dws-investments.com View your account transactions and balances, trade shares, monitor your asset allocation, and change your address, 24 hours a day. Obtain prospectuses and applications, blank forms, interactive worksheets, news about DWS funds, subscription to fund updates by e-mail, retirement planning information, and more.
Written Correspondence	DWS Investments PO Box 219151 Kansas City, MO 64121-9151
Proxy Voting	The fund's policies and procedures for voting proxies for portfolio securities and information about how the fund voted proxies related to its portfolio securities during the 12-month period ended June 30 are available on our Web site — www.dws-investments.com (click on "proxy voting"at the bottom of the page) — or on the SEC's Web site — www.sec.gov. To obtain a written copy of the fund's policies and procedures without charge, upon request, call us toll free at ((800) 728-3337.
Portfolio Holdings	Following the fund's fiscal first and third quarter-end, a complete portfolio holdings listing is filed with the SEC on Form N-Q. This form will be available on the SEC's Web site at www.sec.gov, and it also may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the SEC's Public Reference Room may be obtained by calling (800) SEC-0330. The fund's portfolio holdings are also posted on www.dws-investments.com from time to time. Please see the fund's current prospectus for more information.
Principal Underwriter	If you have questions, comments or complaints, contact: DWS Investments Distributors, Inc. 222 South Riverside Plaza Chicago, IL 60606-5808 (800) 621-1148
Investment Management	Deutsche Investment Management Americas Inc. ("DIMA" or the "Advisor"), which is part of Deutsche Asset Management, is the investment advisor for the fund. DIMA and its predecessors have more than 80 years of experience managing mutual funds and DIMA provides a full range of investment advisory services to both institutional and retail clients. DIMA is an indirect, wholly owned subsidiary of Deutsche Bank AG. Deutsche Bank AG is a major global banking institution engaged in a wide variety of financial services, including investment management, retail, private and commercial banking, investment banking and insurance. DWS Investments is the retail brand name in the U.S. for the asset management activities of Deutsche Bank AG and DIMA. As such, DWS is committed to delivering the investing expertise, insight and resources of this global investment platform to American investors.

	Class A	Class B	Class C	Class S	Institutional Class
Nasdaq Symbol	SMLAX	SMLBX	SMLCX	SCMBX	SMLIX
CUSIP Number	23337W-709	23337W-808	23337W-881	23337W-865	23337W-857
Fund Number	466	666	766	2066	544

Privacy Statement

FACTS	What Does DWS Investments Do With Your Personal Information?
Why?	Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share and protect your personal information. Please read this notice carefully to understand what we do.
What?	The types of personal information we collect and share can include: • Social Security number • Account balances • Purchase and transaction history • Bank account information • Contact information such as mailing address, e-mail address and telephone number
How?	All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information, the reasons DWS Investments chooses to share and whether you can limit this sharing.

Reasons we can share your personal information	Does DWS Investments share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders or legal investigations	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We do not share
For our affiliates' everyday business purposes — information about your transactions and experiences	No	We do not share
For our affiliates' everyday business purposes — information about your creditworthiness	No	We do not share
For non-affiliates to market to you	No	We do not share

Questions? Call (800) 728-3337 or e-mail us at dws-investments.info@dws.com

Who we are
Who is providing this notice?	DWS Investments Distributors, Inc.; Deutsche Investment Management Americas Inc.; DeAM Investor Services, Inc.; DWS Trust Company; the DWS Funds
What we do
How does DWS Investments protect my personal information?	To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings.
How does DWS Investments collect my personal information?	We collect your personal information, for example. When you: • open an account • give us your contact information • provide bank account information for ACH or wire transactions • tell us where to send money • seek advice about your investments
Why can't I limit all sharing?	Federal law gives you the right to limit only • sharing for affiliates' everyday business purposes — information about your creditworthiness • affiliates from using your information to market to you • sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing.
Definitions
Affiliates	Companies related by common ownership or control. They can be financial or non-financial companies. Our affiliates include financial companies with the DWS or Deutsche Bank ("DB") name, such as DB AG Frankfurt and DB Alex Brown.
Non-affiliates	Companies not related by common ownership or control. They can be financial and non-financial companies. Non-affiliates we share with include account service providers, service quality monitoring services, mailing service providers and verification services to help in the fight against money laundering and fraud.
Joint marketing	A formal agreement between non-affiliated financial companies that together market financial products or services to you. DWS Investments does not jointly market.

Rev. 09/2012

Notes

Notes

Notes

Notes

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 OF LISTED REGISTRANTS
	Not applicable
ITEM 6.	SCHEDULE OF INVESTMENTS
	Not applicable
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
	Not applicable
ITEM 9.	PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS
	Not applicable
ITEM 10.	SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
	There were no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board. The primary function of the Nominating and Governance Committee is to identify and recommend individuals for membership on the Board and oversee the administration of the Board Governance Guidelines. Shareholders may recommend candidates for Board positions by forwarding their correspondence by U.S. mail or courier service to Kenneth C. Froewiss, Independent Chairman, DWS Mutual Funds, P.O. Box 78, Short Hills, NJ 07078.
ITEM 11.	CONTROLS AND PROCEDURES
	(a)	The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.
	(b)	There have been no changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting.
ITEM 12.	EXHIBITS
	(a)(1)	Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.
	(b)	Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT.

Form N-CSRS Item F

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.

Registrant:	DWS Managed Municipal Bond Fund, a series of DWS Municipal Trust
By:	/s/W. Douglas Beck W. Douglas Beck President
Date:	January 30, 2013

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:	/s/W. Douglas Beck W. Douglas Beck President
Date:	January 30, 2013
By:	/s/Paul Schubert Paul Schubert Chief Financial Officer and Treasurer
Date:	January 30, 2013