N-Q 1 gug58289-nq.htm MZF gug58289-nq.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC  20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number
811-21359
 
Managed Duration Investment Grade Municipal Fund
(Exact name of registrant as specified in charter)
 
2455 Corporate West Drive, Lisle, IL 60532
(Address of principal executive offices) (Zip code)
 
Amy J. Lee
2455 Corporate West Drive, Lisle, IL 60532
(Name and address of agent for service)

Registrant’s telephone number, including area code: (630) 505-3700

Date of fiscal year end: July 31
Date of reporting period: August 1, 2013 to October 31, 2013
 
 
 

 

Item 1.   Schedule of Investments.
 Attached hereto.
 
MZF Managed Duration Investment Grade Municipal Fund
Portfolio of Investments
October 31, 2013 (unaudited)
 
Principal
         
Optional
Call
 
Amount
 
Description
Rating *
Coupon
Maturity
 Provisions**
Value
   
Long-Term Investments - 173.6%***
         
   
Municipal Bonds - 171.3%
         
   
Alabama - 3.0%
         
$845,000
 
Courtland Industrial Development Board, AMT, Series B
BBB
6.250%
08/01/2025
12/05/13 @ 100
$847,146
1,890,000
 
Courtland Industrial Development Board, AMT
Baa3
6.000%
08/01/2029
12/05/13 @ 100
1,891,493
             
2,738,639
               
   
Alaska - 0.9%
         
750,000
 
Alaska Municipal Bond Bank Authority, Series 1
AA
5.750%
09/01/2033
09/01/18 @ 100
832,320
               
   
Arizona - 4.6%
         
2,000,000
 
Arizona Health Facilities Authority(a)
BBB+
1.930%
02/01/2048
08/05/22 @ 100
1,940,000
1,250,000
 
Glendale Municipal Property Corp., Series B
AA+
5.000%
07/01/2033
01/01/23 @ 100
1,294,500
1,000,000
 
Phoenix Industrial Development Authority
A+
5.250%
06/01/2034
06/01/22 @ 100
1,015,130
             
4,249,630
               
   
California - 15.8%
         
1,000,000
 
Bay Area Toll Authority(a)
AA
1.330%
04/01/2036
10/01/26 @ 100
982,510
1,500,000
 
California Health Facilities Financing Authority, Series B
AA-
5.875%
08/15/2031
08/15/20 @ 100
1,688,160
1,000,000
 
California Pollution Control Financing Authority, AMT(b)
Baa3
5.000%
07/01/2030
07/01/22 @ 100
906,280
2,500,000
 
California Statewide Communities Development Authority(a)
A+
0.946%
04/01/2036
11/04/13 @ 100
1,762,975
2,500,000
 
City of Chula Vista CA, AMT, Series B
A
5.500%
12/01/2021
06/02/14 @ 102
2,581,525
1,000,000
 
Los Angeles County Public Works Financing Authority
AA-
4.000%
08/01/2042
08/01/22 @ 100
823,190
2,525,000
 
Los Angeles Unified School District, Series F
AA-
5.000%
01/01/2034
07/01/19 @ 100
2,633,348
1,000,000
 
San Bernardino City Unified School District, (AGM)
AA-
5.000%
08/01/2028
08/01/23 @ 100
1,065,810
2,000,000
 
State of California, General Obligation
A
5.000%
02/01/2028
02/01/23 @ 100
2,182,160
             
14,625,958
               
   
Colorado - 2.1%
         
1,000,000
 
City & County of Denver CO Airport System Revenue
A
5.000%
11/15/2043
11/15/23 @ 100
999,980
1,000,000
 
Colorado Health Facilities Authority
A+
5.250%
01/01/2045
01/01/23 @ 100
990,830
             
1,990,810
               
   
Connecticut - 1.7%
         
1,750,000
 
Connecticut Housing Finance Authority, Series D 2
AAA
4.000%
11/15/2034
05/15/21 @ 100
1,586,077
               
   
Delaware - 1.7%
         
1,500,000
 
Delaware State Economic Development Authority
BBB+
5.400%
02/01/2031
08/01/20 @ 100
1,583,865
               
   
District of Columbia - 2.2%
         
2,000,000
 
District of Columbia Housing Finance Agency, AMT, (FHA)
Aaa
5.100%
06/01/2037
06/01/15 @ 102
2,001,220
               
   
Florida - 11.9%
         
1,000,000
 
County of Broward FL, AMT, (AGM)
AA-
5.000%
04/01/2038
04/01/23 @ 100
980,610
2,200,000
 
County of Miami-Dade FL, Aviation Revenue, AMT, (CIFG)
A
5.000%
10/01/2038
10/01/15 @ 100
2,144,824
1,000,000
 
Highlands County Health Facilities Authority, Series D, (Prerefunded @ 11/15/2013)(c)
NR
5.875%
11/15/2029
11/15/13 @ 100
1,001,570
1,500,000
 
JEA Water & Sewer System Revenue, Series B
AA
4.000%
10/01/2041
10/01/17 @ 100
1,323,795
2,000,000
 
Miami-Dade County Educational Facilities Authority, Series A
A-
5.000%
04/01/2042
04/01/23 @ 100
1,987,900
1,500,000
 
Miami-Dade County School Board Foundation, Inc., Series A, (Assured Gty)
AA-
5.375%
02/01/2034
02/01/19 @ 100
1,584,180
1,000,000
 
Seminole Tribe of Florida, Inc., Series A(b)
BBB-
5.250%
10/01/2027
10/01/17 @ 100
1,035,230
1,000,000
 
Tampa-Hillsborough County Expressway Authority, Series B
A-
5.000%
07/01/2042
07/01/22 @ 100
1,013,970
             
11,072,079
               
   
Hawaii - 1.1%
         
1,000,000
 
Hawaii Pacific Health, Series B
A-
5.625%
07/01/2030
07/01/20 @ 100
1,063,430
               
   
Illinois - 13.9%
         
1,000,000
 
Chicago Board of Education, General Obligation, Series A
A+
5.000%
12/01/2041
12/01/21 @ 100
918,190
1,750,000
 
City of Chicago IL, O'Hare International Airport Revenue, Series C
A-
5.500%
01/01/2031
01/01/21 @ 100
1,848,263
1,115,000
 
City of Chicago IL, O'Hare International Airport Revenue, AMT, Series A-2, (Prerefunded @ 1/1/2014), (AGM)(c)
AA-
5.500%
01/01/2016
01/01/14 @ 100
1,123,864
2,000,000
 
Illinois Finance Authority, Roosevelt University Revenue
Baa3
5.500%
04/01/2037
04/01/17 @ 100
1,961,200
1,000,000
 
Illinois Finance Authority, Rush University Medical Center Revenue, Series C
A
6.375%
11/01/2029
05/01/19 @ 100
1,129,660
760,000
 
Illinois Housing Development Authority, AMT, Series A-2
AA
5.000%
08/01/2036
02/01/16 @ 100
763,169
2,000,000
 
Metropolitan Pier & Exposition Authority, Series A
AAA
5.000%
06/15/2042
06/15/22 @ 100
2,047,680
1,000,000
 
Railsplitter Tobacco Settlement Authority
A-
6.000%
06/01/2028
06/01/21 @ 100
1,061,710
2,000,000
 
State of Illinois, General Obligation, Series A
A-
5.000%
03/01/2028
03/01/14 @ 100
1,989,740
             
12,843,476
               
   
Indiana - 3.4%
         
1,000,000
 
Indiana Finance Authority
BB-
6.000%
12/01/2026
06/01/20 @ 100
976,090
2,000,000
 
Indianapolis Local Public Improvement Bond Bank, Series A
A+
5.500%
01/01/2029
01/01/19 @ 100
2,160,640
             
3,136,730
               
   
Iowa - 6.2%
         
1,090,000
 
Iowa Finance Authority
A+
5.000%
08/15/2029
08/15/22 @ 100
1,131,496
1,650,000
 
Iowa Finance Authority
BBB-
4.750%
08/01/2042
08/01/22 @ 100
1,404,843
1,500,000
 
Iowa Higher Education Loan Authority
BBB
5.500%
09/01/2025
09/01/20 @ 100
1,571,910
2,000,000
 
Iowa Tobacco Settlement Authority, Series B
B+
5.600%
06/01/2034
06/01/17 @ 100
1,676,040
             
5,784,289
               
   
Kentucky - 2.3%
         
1,000,000
 
County of Owen KY, Waterworks System Revenue, Series B
A-
5.625%
09/01/2039
09/01/19 @ 100
1,017,020
1,000,000
 
Kentucky Economic Development Finance Authority, Series A
A2
5.625%
08/15/2027
08/15/18 @ 100
1,099,620
             
2,116,640
               
   
Louisiana - 10.2%
         
1,000,000
 
East Baton Rouge Sewerage Commission, Series A
AA-
5.250%
02/01/2034
02/01/19 @ 100
1,067,250
3,000,000
 
Louisiana Local Government Environmental Facilities & Community Development Authority
BBB
6.750%
11/01/2032
11/01/17 @ 100
3,207,810
1,000,000
 
Louisiana Public Facilities Authority, Hospital Revenue
A3
5.250%
11/01/2030
05/01/20 @ 100
1,013,150
1,000,000
 
Parish of DeSoto LA, AMT, Series A
BBB
5.850%
11/01/2027
12/05/13 @ 100
1,000,000
1,500,000
 
Parish of St John the Baptist LA, Series A
BBB
5.125%
06/01/2037
06/01/17 @ 100
1,488,780
1,600,000
 
State of Louisiana Gasoline & Fuels Tax Revenue
AA
5.000%
05/01/2043
05/01/23 @ 100
1,673,808
             
9,450,798
               
   
Maryland - 0.6%
         
500,000
 
Maryland Economic Development Corp.
BB
5.750%
09/01/2025
09/01/20 @ 100
520,240
               
   
Massachusetts - 4.4%
         
1,000,000
 
Massachusetts Educational Financing Authority, AMT
AA
5.375%
07/01/2025
07/01/21 @ 100
1,054,750
1,000,000
 
Massachusetts Educational Financing Authority, AMT
AA
4.700%
07/01/2026
07/01/21 @ 100
1,007,620
1,000,000
 
Massachusetts Health & Educational Facilities Authority, Series A
BBB
6.250%
07/01/2030
07/01/19 @ 100
1,080,760
950,000
 
Massachusetts Housing Finance Agency, AMT
AA-
5.100%
12/01/2027
06/01/17 @ 100
962,046
             
4,105,176
               
   
Michigan - 5.1%
         
1,000,000
 
City of Detroit MI, Sewer Disposal Revenue, Series B, (AGM)
AA-
7.500%
07/01/2033
07/01/19 @ 100
1,072,410
1,000,000
 
City of Detroit MI, Water Supply System Revenue, (AGM)
AA-
7.000%
07/01/2036
07/01/19 @ 100
1,050,670
500,000
 
Detroit Wayne County Stadium Authority, (AGM)
AA-
5.000%
10/01/2026
10/01/22 @ 100
518,155
1,000,000
 
Michigan Finance Authority
AA-
5.000%
12/01/2031
12/01/21 @ 100
1,041,740
1,000,000
 
Michigan Strategic Fund, Series B-1
A-2
6.250%
06/01/2014
N/A
1,028,409
             
                 4,711,384
               
   
Minnesota - 1.3%
         
1,500,000
 
St Paul Port Authority, AMT
BBB-
4.500%
10/01/2037
10/01/22 @ 100
1,216,185
               
   
Mississippi - 1.2%
         
1,000,000
 
County of Warren MS, Series A
BBB
6.500%
09/01/2032
09/01/18 @ 100
1,067,010
               
   
Nevada - 1.6%
         
1,435,000
 
Las Vegas Valley Water District, Series C
AA+
5.000%
06/01/2031
06/01/21 @ 100
1,525,979
               
   
New Hampshire - 1.0%
         
1,000,000
 
New Hampshire Health and Education Facilities Authority Act
BBB
5.000%
01/01/2034
01/01/22 @ 100
949,980
               
   
New Jersey - 7.5%
         
3,000,000
 
New Jersey Economic Development Authority, Series I(a)
A+
1.680%
03/01/2028
03/01/23 @ 100
2,921,970
500,000
 
New Jersey Economic Development Authority, Series C
BBB-
5.000%
07/01/2032
07/01/22 @ 100
464,965
1,500,000
 
New Jersey Health Care Facilities Financing Authority
BBB+
5.750%
07/01/2039
07/01/19 @ 100
1,556,955
2,000,000
 
New Jersey Transportation Trust Fund Authority, Series A
A+
5.000%
06/15/2042
06/15/22 @ 100
2,034,900
             
6,978,790
               
   
New York - 11.7%
         
1,895,000
 
City of New York NY, Series J, (Prerefunded @ 5/15/2014)(c)
NR
5.000%
05/15/2023
05/15/14 @ 100
1,943,360
2,750,000
 
Long Island Power Authority, Series A
A-
5.100%
09/01/2029
09/01/14 @ 100
2,799,583
300,000
 
New York City Industrial Development Agency, American Airlines, JFK International Airport, AMT
NR
7.500%
08/01/2016
N/A
316,899
1,000,000
 
New York State Dormitory Authority, Series A
BBB
5.000%
07/01/2032
07/01/22 @ 100
1,006,220
700,000
 
New York State Dormitory Authority, Series B
A-
5.250%
07/01/2024
07/01/17 @ 100
754,117
1,500,000
 
Suffolk County Industrial Development Agency, AMT
A-
5.250%
06/01/2027
12/05/13 @ 100
1,507,635
1,485,000
 
Tobacco Settlement Financing Corp., Series A-1
AA-
5.500%
06/01/2019
11/20/13 @ 100
1,490,242
1,000,000
 
Troy Industrial Development Authority
A-
5.000%
09/01/2031
09/01/21 @ 100
1,048,050
             
10,866,106
               
   
Ohio - 4.4%
         
2,000,000
 
American Municipal Power, Inc., Series B
A
5.000%
02/15/2042
02/15/22 @ 100
2,007,920
1,000,000
 
Ohio Air Quality Development Authority, Series A
BBB-
5.700%
02/01/2014
N/A
1,010,630
1,000,000
 
Ohio Air Quality Development Authority
BBB-
5.625%
06/01/2018
N/A
1,086,840
             
4,105,390
               
   
Oklahoma - 1.1%
         
1,000,000
 
Oklahoma Development Finance Authority
A+
5.000%
02/15/2034
02/15/22 @ 100
1,016,870
               
   
Pennsylvania - 7.9%
         
1,110,000
 
City of Philadelphia PA, General Obligation, Series A, (Assured Gty)
AA-
5.375%
08/01/2030
08/01/19 @ 100
1,172,349
1,100,000
 
City of Philadelphia PA, General Obligation
A-
5.875%
08/01/2031
08/01/16 @ 100
1,157,013
1,000,000
 
County of Lehigh PA
A+
4.000%
07/01/2043
07/01/22 @ 100
818,530
1,500,000
 
Delaware River Port Authority
BBB-
5.000%
01/01/2027
01/01/23 @ 100
1,519,695
1,000,000
 
Pennsylvania Higher Educational Facilities Authority, Series A
BBB
5.000%
05/01/2037
11/01/17 @ 100
950,940
1,000,000
 
Pennsylvania Higher Educational Facilities Authority, Series B
AA-
6.000%
08/15/2026
08/15/18 @ 100
1,156,660
500,000
 
State Public School Building Authority
A+
5.000%
04/01/2032
04/01/22 @ 100
505,105
             
7,280,292
               
   
Puerto Rico - 2.0%
         
1,000,000
 
Puerto Rico Commonwealth Aqueduct & Sewer Authority
BB+
5.000%
07/01/2033
07/01/22 @ 100
737,570
1,215,000
 
Puerto Rico Sales Tax Financing Corp.
AA-
5.250%
08/01/2040
08/01/21 @ 100
1,085,384
             
1,822,954
               
   
Rhode Island - 1.5%
         
1,300,000
 
Rhode Island Convention Center Authority, Series A, (Assured Gty)
AA-
5.500%
05/15/2027
05/15/19 @ 100
1,410,591
               
   
South Carolina - 4.9%
         
2,500,000
 
County of Florence SC, Series A, (AGM)
AA-
5.250%
11/01/2027
11/01/14 @ 100
2,564,000
1,000,000
 
County of Georgetown SC, AMT, Series A
BBB
5.300%
03/01/2028
03/01/14 @ 100
1,000,160
1,000,000
 
South Carolina State Public Service Authority
AA-
5.000%
12/01/2048
12/01/23 @ 100
990,160
             
4,554,320
               
   
South Dakota - 1.3%
         
1,200,000
 
South Dakota Health & Educational Facilities Authority, Series A
A+
5.250%
11/01/2034
11/01/14 @ 100
1,205,724
               
   
Tennessee - 3.5%
         
2,500,000
 
Knox County Health Educational & Housing Facility Board
BBB+
5.250%
04/01/2027
04/01/17 @ 100
2,545,850
650,000
 
Metropolitan Nashville Airport Authority
Baa3
5.200%
07/01/2026
07/01/20 @ 100
670,598
             
3,216,448
               
   
Texas - 15.6%
         
2,000,000
 
City of Houston TX Utility System Revenue, Series A, (AGM)
AA
5.000%
11/15/2033
11/15/17 @ 100
2,105,620
1,000,000
 
Fort Bend County Industrial Development Corp.
Baa3
4.750%
11/01/2042
11/01/22 @ 100
866,010
2,000,000
 
Lower Colorado River Authority
A
6.250%
05/15/2028
05/15/18 @ 100
2,226,660
2,315,000
 
Matagorda County Navigation District No. 1, AMT, (AMBAC)
A
5.125%
11/01/2028
N/A
2,414,915
2,000,000
 
North Texas Tollway Authority, Series A
A-
5.625%
01/01/2033
01/01/18 @ 100
2,107,520
2,100,000
 
San Leanna Educational Facilities Corp.
BBB+
5.125%
06/01/2036
06/01/17 @ 100
1,993,593
720,000
 
Tarrant County Cultural Education Facilities Finance Corp., Series A, (Assured Gty)
AA-
5.750%
07/01/2018
N/A
759,874
2,000,000
 
Tarrant County Cultural Education Facilities Finance Corp.
AA-
5.000%
10/01/2043
10/01/23 @ 100
1,990,680
             
14,464,872
               
   
Vermont - 3.0%
         
2,800,000
 
Vermont Student Assistance Corp., AMT, Series B(a) (d)
A
3.242%
12/03/2035
12/02/13 @ 100
2,776,200
               
   
Virginia - 1.5%
         
1,250,000
 
Washington County Industrial Development Authority, Series C
BBB+
7.500%
07/01/2029
01/01/19 @ 100
1,420,738
               
   
Washington - 2.2%
         
1,000,000
 
Spokane Public Facilities District
A+
5.000%
12/01/2038
06/01/23 @ 100
1,002,980
1,000,000
 
Tes Properties
AA+
5.625%
12/01/2038
06/01/19 @ 100
1,054,360
             
2,057,340
               
   
Wisconsin - 2.5%
         
1,250,000
 
Wisconsin Health & Educational Facilities Authority, Series A
AA+
5.000%
11/15/2036
11/15/16 @ 100
1,263,963
1,000,000
 
WPPI Energy
A
5.000%
07/01/2037
07/01/23 @ 100
1,023,790
             
2,287,753
               
   
Wyoming - 4.5%
         
4,000,000
 
County of Sweetwater WY, AMT(d)
A-
5.600%
12/01/2035
12/01/15 @ 100
4,196,640
               
   
Total Municipal Bonds - 171.3%
         
   
(Cost $156,682,989)
       
158,832,943
               
   
Preferred Shares - 2.3%
         
   
Diversified Financial Services - 2.3%
         
2,000,000
 
Centerline Equity Issuer Trust, Series A-4-1(b)
Aaa
5.750%
05/15/2015
N/A
                2,100,240
   
(Cost $2,000,000)
         
               
   
Total Long-Term Investments - 173.6%
         
   
(Cost $158,682,989)
       
160,933,183
               
Number
             
of Shares
 
Description
       
Value
   
Money Market - 2.2%
         
2,053,340
 
JPMorgan Tax Free Money Market
       
               2,053,340
   
(Cost $2,053,340)
         
               
   
Total Investments - 175.8%
         
   
(Cost $160,736,329)
       
162,986,523
   
Liabilities in excess of Other Assets - (0.9%)
       
                    (811,375)
   
Preferred Shares, at redemption value - (-74.9% of Net Assets Applicable to Common Shareholders
or -42.6% of Total Investments)
     
          (69,450,000)
   
Net Assets  - 100.0%
       
$  92,725,148
               
 
 
 

 
 
AGM – Insured by Assured Guaranty Municipal Corporation
AMBAC – Insured by Ambac Assurance Corporation
AMT - Income from this security is a preference item under the Alternative Minimum Tax.
Assured Gty – Insured by Assured Guaranty Corporation
CIFG – Insured by CIFG Assurance North America, Inc.
FHA – Guaranteed by Federal Housing Administration
N/A- Not Applicable
 
*
Ratings shown are per Standard & Poor's Rating Group ("S&P""), Moody's Investor Services, Inc. ("Moody's") or Fitch Ratings ("Fitch").  Securities classified as NR are not rated. (For securities not rated by S&P, the rating by Moody's is provided.  Likewise, for securities not rated by S&P and Moody's, the rating by Fitch is provided.)  All ratings are unaudited.  The ratings apply to the credit worthiness of the issuers of the underlying securities and not to the Fund or its shares.
**
Date and price of the earliest optional call or put provision. There may be other call provisions at varying prices at later dates.
***
All percentages shown in the Portfolio of Investments are based on Net Assets Applicable to Common Shareholders, unless otherwise noted.
(a)
Floating or variable rate coupon.  The rate shown is as of October 31, 2013.
(b)
Securities are 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.  At October 31, 2013 these securities amounted to $4,041,750, which represents 4.4% of net assets applicable to common shares.
(c)
The bond is prerefunded.  U.S. government or U.S. government agency securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date and price indicated under the Optional Call Provisions.
(d)
All or a portion of these securities have been physically segregated as collateral for borrowings outstanding.  As of October 31, 2013, the total amount segregated was $6,972,840.
 
See previously submitted notes to financial statements for the period ended July 31, 2013.
 
 
 

 
 
At October 31, 2013, the cost and related gross unrealized appreciation and depreciation on investments for tax purposes are as follows:
 
Cost of
Investments
for Tax
Purposes
Gross Tax
Unrealized
Appreciation
Gross Tax
Unrealized
Depreciation
Net Tax
Unrealized
Appreciation
on Investments
$160,769,539
$6,663,947
$(4,446,963)
$2,216,984
 
The municipal bonds and preferred shares in which the Fund invests are traded primarily in the over-the-counter markets.  In determining net asset value, the Fund uses the valuations of portfolio securities furnished by a pricing service approved by the Board of Trustees.  The pricing service typically values portfolio securities at the bid price or the yield equivalent when quotations are readily available.  Securities for which quotations are not readily available are valued at fair market value on a consistent basis as determined by the pricing service using a matrix system to determine valuations.  The procedures of the pricing service and its valuations are reviewed by the officers of the Fund under the general supervision of the Board of Trustees.  Positions in futures contracts, interest rate swaps and options on interest rate swaps ("swaptions") are valued at closing prices for such contracts established by the exchange or dealer market on which they are traded.
 
For those securities where quotations or prices are not available, the valuations are determined in accordance with procedures established in good faith by management and approved by the Board of Trustees. Valuations in accordance with these procedures are intended to reflect each security’s (or asset’s) fair value.  Fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market, the most advantageous market for the investment or liability. Each such determination should be based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. Examples of such factors may include, but are not limited to: (i) the type of security, (ii) the initial cost of the security, (iii) the existence of any contractual restrictions on the security’s disposition, (iv) the price and extent of public trading in similar securities of the issuer or of comparable companies, (v) quotations or evaluated prices from broker-dealers and/or pricing services, (vi) information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange traded securities), (vii) an analysis of the company’s financial statements, and (viii) an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold (e.g. the existence of pending merger activity, public offerings or tender offers that might affect the value of the security).
 
There are three different categories for valuations.  Level 1 valuations are those based upon quoted prices in active markets.  Level 2 valuations are those based upon quoted prices in less active markets or based upon significant observable inputs (e.g. yield curves; benchmark interest rates; indices).  Level 3 valuations are those based upon unobservable inputs (e.g. discounted cash flow analysis; non-market based methods used to determine fair valuation).
 
The Fund values Level 1 securities using readily available market quotations in active markets. Money market funds are valued at net asset value. The Fund values Level 2 fixed income securities using independent pricing providers who employ matrix pricing models utilizing market prices, broker quotes and prices of securities with comparable maturities and qualities. The Fund values Level 2 equity securities using various observable market inputs as described above. The Fund did not have any Level 3 securities during the period ended October 31, 2013.
                   
Transfers between levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective as of the beginning of the period.
                   
The following table represents the Fund's investments carried by caption and by level within the fair value hierarchy as of October 31, 2013.
 
Valuations (in $000s)
 
Level 1
   
Level 2
   
Level 3
   
Total
 
Description
                       
                         
Assets:
                       
Municipal Bonds
  $ -     $ 158,833     $ -     $ 158,833  
Preferred Shares
    -       2,100       -       2,100  
Money Market
    2,053       -       -       2,053  
Total
  $ 2,053     $ 160,933     $ -     $ 162,986  
 
There were no transfers between levels for the three months ended October 31, 2013.
 
 
 

 
 
Item 2.  Controls and Procedures.

(a)  
The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “Investment Company Act”)) as of a date within 90 days of the filing date of this report and have concluded, based on such evaluation  that the registrant’s disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant on this Form N-Q was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

(b)  
There was no change in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the registrant’s last fiscal quarter that materially affected or is reasonably likely to materially affect the registrant’s internal control over financial reporting.

Item 3.  Exhibits.

A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act (17 CFR 270.30a-2(a)) is attached hereto.
 
 
 

 
 

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.

Managed Duration Investment Grade Municipal Fund  

By:         /s/ Clifford D. Corso              
Clifford D. Corso
President and Chief Executive Officer

Date:      December 23, 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/ Clifford D. Corso              
Clifford D. Corso
President and Chief Executive Officer

Date:      December 23, 2013
 
By:         /s/ John L. Sullivan                  
John L. Sullivan
Chief Financial Officer, Chief Accounting Officer and Treasurer

Date:      December 23, 2013