N-Q 1 form.htm FMSIT5028FORM form.htm
United States
Securities and Exchange Commission
Washington, D.C.  20549

Form N-Q
Quarterly Schedule of Portfolio Holdings of Registered Management Investment Companies




811-6165

(Investment Company Act File Number)


Federated Municipal Securities Income Trust
_______________________________________________________________

(Exact Name of Registrant as Specified in Charter)



Federated Investors Funds
5800 Corporate Drive
Pittsburgh, Pennsylvania 15237-7000
(Address of Principal Executive Offices)


(412) 288-1900
(Registrant's Telephone Number)


John W. McGonigle, Esquire
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
(Notices should be sent to the Agent for Service)






Date of Fiscal Year End:  8/31/08


Date of Reporting Period:  Quarter ended 5/31/08







Item 1.                      Schedule of Investments
 


Federated California Municipal Income Fund
 
Portfolio of Investments
 
May 31, 2008 (unaudited)
 
 
Principal
Amount
        
Value
     
MUNICIPAL BONDS – 105.4%
      
     
California—104.6%
      
$
500,000
  
ABAG Finance Authority for Non-Profit Corporations, CA, Revenue Bonds (Series 2007), 5.00% (Hamlin School), 8/1/2037
  
$
424,220
 
500,000
  
ABAG Finance Authority for Non-Profit Corporations, CA, Revenue Bonds, 6.125% (Southern California Presbyterian Homes)/(Original Issue Yield: 6.25%), 11/15/2032
    
511,060
 
500,000
  
Anaheim, CA Public Financing Authority, Lease Revenue Bonds (Series 1997C), 6.00% (Anaheim Public Improvements Project)/(FSA INS), 9/1/2016
    
575,570
 
500,000
  
Bell Community Redevelopment Agency, CA, Refunding Tax Allocation Revenue Bonds, 5.50% (Radian Asset Assurance INS), 10/1/2023
    
512,485
 
605,000
  
Blythe, CA Financing Authority, Sewer Revenue Bonds (Series 1998), 5.75%, 4/1/2028
    
567,557
 
1,000,000
  
Brentwood, CA Infrastructure Financing Authority, Infrastructure Refunding Revenue Bonds (Series 2006A), 5.00% (AMBAC INS), 9/2/2034
    
985,540
 
500,000
  
California Educational Facilities Authority, Revenue Bonds (Series 2000A), 6.75% (Fresno Pacific University), 3/1/2019
    
517,980
 
750,000
  
California Educational Facilities Authority, Revenue Bonds (Series 2005), 5.00% (California College of the Arts), 6/1/2035
    
657,562
 
1,000,000
  
California Educational Facilities Authority, Revenue Bonds (Series 2005A), 5.00% (Pomona College), 7/1/2045
    
1,019,070
 
1,000,000
  
California Educational Facilities Authority, Revenue Bonds (Series 2006), 5.00% (University of the Pacific), 11/1/2036
    
993,950
 
165,000
  
California Educational Facilities Authority, Student Loan Revenue Bonds (Series 1998), 5.55% (AMBAC INS), 4/1/2028
    
166,043
 
425,000
  
California Educational Facilities Authority, Student Loan Revenue Bonds (Series A), 5.40% (Cal Loan Program)/(MBIA Insurance Corp. INS), 3/1/2021
    
430,100
 
425,000
  
California Health Facilities Financing Authority, Health Facility Revenue Bonds (Series 2004I), 4.95% TOBs (Catholic Healthcare West), Mandatory Tender 7/1/2014
    
443,339
 
500,000
  
California Health Facilities Financing Authority, Insured Revenue Bonds (Series 2006), 5.00% (California-Nevada Methodist Homes)/(GTD by California Mortgage Insurance), 7/1/2036
    
485,295
 
1,000,000
  
California Health Facilities Financing Authority, Revenue Bonds (Series 1998), 5.40% (Northern California Presbyterian Homes, Inc.)/(Original Issue Yield: 5.417%), 7/1/2028
    
977,900
 
500,000
  
California Infrastructure & Economic Development Bank, Revenue Bonds (Series 2000A), 5.75% (Scripps Research Institute)/(Original Issue Yield: 5.85%), 7/1/2030
    
504,265
 
1,000,000
  
California Infrastructure & Economic Development Bank, Revenue Bonds (Series 2001B), 5.50% (Kaiser Permanente), 8/1/2031
    
1,012,920
 
1,000,000
  
California Infrastructure & Economic Development Bank, Revenue Bonds (Series 2008), 5.25% (Walt Disney Family Museum)/(Original Issue Yield: 5.50%), 2/1/2038
    
1,020,450
 
1,000,000
  
California PCFA, Refunding Revenue Bonds (1996 Series A), 5.35% (Pacific Gas & Electric Co.)/(MBIA Insurance Corp. INS), 12/1/2016
    
1,037,120
 
1,000,000
1
California PCFA, Solid Waste Disposal Revenue Bonds (Series 2005A-2), 5.40% (Waste Management, Inc.), 4/1/2025
    
932,860
 
750,000
1
California PCFA, Solid Waste Disposal Revenue Bonds, 5.125% TOBs (Waste Management, Inc.), Mandatory Tender 5/1/2014
    
735,855
 
700,000
  
California PCFA, Solid Waste Disposal Revenue Bonds, 6.875% (Browning-Ferris Industries, Inc.)/(Original Issue Yield: 6.95%), 11/1/2027
    
699,993
 
1,000,000
  
California PCFA, Solid Waste Refunding Revenue Bonds (Series 1999A), 5.125% (West County Resource Recovery, Inc.)/(Comerica Bank LOC)/(Original Issue Yield: 5.323%), 1/1/2014
    
1,003,080
 
20,000
  
California Rural Home Mortgage Finance Authority, SFM Revenue Bonds, (Series 1998 B-4), 6.35% (GNMA Collateralized Home Mortgage Program COL), 12/1/2029
    
20,551
 
950,000
  
California State Public Works Board, Lease Revenue Bonds (Series 2007B), 4.75% (California Community Colleges)/(FGIC INS), 3/1/2032
    
901,939
 
15,000
  
California State, 5.125% (Original Issue Yield: 5.40%), 6/1/2025
    
15,256
 
1,000,000
  
California State, UT GO Bonds (Series 2008), 5.125%, 4/1/2033
    
1,011,880
 
20,000
  
California State, UT GO Bonds, 5.75% (Original Issue Yield: 6.25%), 3/1/2019
    
20,152
 
1,000,000
  
California State, Various Purpose UT GO Bonds, 5.125% (Original Issue Yield: 5.16%), 4/1/2023
    
1,028,600
 
2,000,000
  
California State, Various Purpose UT GO Bonds, 5.00%, 6/1/2037
    
1,996,960
 
1,000,000
  
California State, Various Purpose UT GO Bonds, 5.25%, 11/1/2021
    
1,047,520
 
1,000,000
  
California Statewide Communities Development Authority, COPs, 5.50% (Sutter Health)/(FSA INS)/(Original Issue Yield: 5.77%), 8/15/2018
    
1,037,590
 
475,000
1
California Statewide Communities Development Authority, Revenue Bonds (Series 2001), 6.75% (St. Mark's School), 6/1/2028
    
489,378
 
400,000
1
California Statewide Communities Development Authority, Revenue Bonds (Series 2002), 6.75% (Prospect Sierra School)/(United States Treasury PRF 9/1/2010@103)/(Original Issue Yield: 6.85%), 9/1/2032
    
439,964
 
400,000
1
California Statewide Communities Development Authority, Revenue Bonds (Series 2005A), 4.875% (Thomas Jefferson School of Law)/(United States Treasury PRF 10/1/2015@100)/
(Original Issue Yield: 4.93%), 10/1/2035
    
421,492
 
1,000,000
  
California Statewide Communities Development Authority, Revenue Bonds (Series 2005A), 5.25% (Daughters of Charity Health System), 7/1/2035
    
942,170
 
750,000
  
California Statewide Communities Development Authority, Revenue Bonds (Series 2007A), 5.125% (Front Porch at Walnut Village), 4/1/2037
    
676,538
 
500,000
1
California Statewide Communities Development Authority, Revenue Bonds, 6.50% (Turningpoint School), 11/1/2031
    
507,195
 
1,000,000
  
California Statewide Communities Development Authority, Revenue Bonds, 5.75% (Los Angeles Orthopedic Hospital Foundation)/(AMBAC INS), 6/1/2030
    
1,006,380
 
500,000
  
Capistrano Unified School District, CA Community Facilities District No. 90-2, Special Tax Bonds (Series 2003), 5.875% (Talega Ranch), 9/1/2023
    
504,775
 
500,000
  
Carlsbad, CA Community Facilities District No. 3, Special Tax Bonds (Series 2006), 5.30% (Original Issue Yield: 5.33%), 9/1/2036
    
426,775
 
455,000
  
Central Unified School District, CA, UT GO Bonds (Series 2004A), 5.50% (United States Treasury PRF 7/1/2014@100), 7/1/2024
    
506,588
 
1,000,000
  
Chabot-Las Positas, CA Community College District, UT GO Bonds (Series 2006B), 5.00% (AMBAC INS), 8/1/2031
    
1,024,870
 
1,000,000
  
Chowchilla, CA Redevelopment Agency, Tax Allocation Bonds (Series 2005), 5.00% (Radian Asset Assurance INS), 8/1/2037
    
964,260
 
250,000
  
Chula Vista, CA Community Facilities District No. 06-1, Special Tax Revenue Bonds (Series 2002A), 6.15% (Eastlake-Woods, Vistas & Land Swap), 9/1/2026
    
251,975
 
425,000
1
Community Facilities District No. 3 (Liberty Station), Special Tax Bonds (Series 2006A), 5.75%, 9/1/2036
    
393,231
 
1,500,000
1,2
Contra Costa County, CA Public Financing Authority, Austin Trust Variable Inverse Certificates (Series 2007-1005), 9.85% (MBIA Insurance Corp. INS), 8/1/2037
    
1,543,995
 
1,000,000
  
Daly City, CA HDFA, Mobile Home Park Senior Revenue Bonds (Series 2002A), 5.85% (Franciscan Acquisition Project)/(United States Treasury PRF 12/15/2013@102)/(Original Issue Yield: 5.95%), 12/15/2032
    
1,153,780
 
1,000,000
  
El Centro, CA Financing Authority, INS Hospital Revenue Bonds (Series 2001), 5.25% (El Centro Regional Medical Center)/(GTD by California Mortgage Insurance)/(Original Issue Yield: 5.32%), 3/1/2018
    
1,014,490
 
720,000
  
El Monte, CA Public Financing Authority, Tax Allocation Revenue Bonds (Series 1998), 5.75% (El Monte, CA Community Redevelopment Agency)/(United States Treasury PRF 6/1/2008@102), 6/1/2028
    
734,472
 
1,000,000
  
Foothill/Eastern Transportation Corridor Agency, CA, Toll Road Refunding Revenue Bonds, 5.75% (Original Issue Yield: 5.774%), 1/15/2040
    
978,400
 
1,000,000
  
Fresno Joint Powers Financing Authority, Lease Revenue Bonds (Series 2008C), 5.00% (Assured Guaranty Corp. INS), 4/1/2038
    
1,016,250
 
1,800,000
  
Golden State Tobacco Securitization Corp., CA, Tobacco Settlement Asset-Backed Bonds (Series 2007A-1), 5.75%, 6/1/2047
    
1,564,290
 
2,000,000
  
Golden State Tobacco Securitization Corp., CA, Tobacco Settlement Asset-Backed Revenue Bonds (Series 2003A-1), 6.75% (United States Treasury PRF 6/1/2013@100)/(Original Issue Yield: 7.00%), 6/1/2039
    
2,295,740
 
1,000,000
  
Inglewood, CA Public Financing Authority, Refunding Revenue Bonds (Series 1999A), 5.625% (AMBAC INS), 8/1/2016
    
1,048,490
 
365,000
  
Inland Empire Solid Waste Financing Authority, CA, Revenue Bonds (Series B), 6.25% (Escrowed In Treasuries COL), 8/1/2011
    
385,163
 
500,000
  
Irvine, CA Assessment District No. 04-20, Special Assessment Bonds (Group One), 5.00% (Original Issue Yield: 5.10%), 9/2/2030
    
434,555
 
1,000,000
  
Irvine, CA Unified School District Financing Authority, Special Tax Revenue Bonds (Series 2005A), 5.00% (AMBAC INS), 9/1/2034
    
989,820
 
1,000,000
3
Kern Community College District, CA, GO Bonds (Series 2006), (FSA INS), 4.58%,
11/1/2023
    
468,520
 
500,000
  
La Verne, CA, Revenue COPs (Series 2003B), 6.625% (Brethren Hillcrest Homes)/(Original Issue Yield: 6.70%), 2/15/2025
    
529,005
 
845,000
  
Lancaster, CA Redevelopment Agency, Tax Allocation Bonds (Issue of 2004), 5.00% (XL Capital Assurance Inc. INS), 12/1/2023
    
858,114
 
1,000,000
  
Lindsay, CA Redevelopment Agency, Refunding Tax Allocation Bonds (Series 2005), 5.00% (Radian Asset Assurance INS), 8/1/2025
    
1,002,320
 
500,000
  
Loma Linda, CA, Hospital Revenue Bonds (Series 2005A), 5.00% (Loma Linda University Medical Center Project), 12/1/2023
    
490,490
 
1,000,000
  
Long Beach, CA Bond Financing Authority, Plaza Parking Facility Lease Revenue Bonds, 5.25% (Original Issue Yield: 5.54%), 11/1/2021
    
1,029,870
 
35,000
  
Los Angeles, CA Community Redevelopment Agency, Housing Revenue Refunding Bonds (Series A), 6.55% (AMBAC INS), 1/1/2027
    
35,039
 
1,000,000
  
Metropolitan Water District of Southern California, Water Revenue Bonds (Series 2006C), 5.00%, 7/1/2035
    
1,030,120
 
1,000,000
  
Oakland, CA Unified School District, UT GO (Series 2000F), 5.60% (United States Treasury PRF 8/1/2010@100)/(Original Issue Yield: 5.63%), 8/1/2019
    
1,069,850
 
500,000
  
Orange County, CA Community Facilities District No. 2000-1, Special Tax Bonds (Series 2004A), 5.625% (Ladera Ranch)/(Original Issue Yield: 5.65%), 8/15/2034
    
489,555
 
500,000
  
Oxnard, CA Community Facilities District No. 3, Special Tax Bonds (Series 2005), 5.00% (Seabridge at Mandalay Bay)/(Original Issue Yield: 5.22%), 9/1/2035
    
409,120
 
1,000,000
  
Oxnard, CA Union High School District, Refunding UT GO Bonds (Series 2001A), 6.20% (MBIA Insurance Corp. INS), 8/1/2030
    
1,064,730
 
500,000
  
Perris, CA Public Financing Authority, Tax Allocation Revenue Bonds (Series 2001A), 5.75% (Original Issue Yield: 5.85%), 10/1/2031
    
529,630
 
1,000,000
  
Port of Oakland, CA, Revenue Bonds (Series 2000K), 5.75% (FGIC INS)/(Original Issue Yield: 5.78%), 11/1/2020
    
1,007,480
 
600,000
  
Poway, CA Unified School District, Special Tax Bonds (Series 2005), 5.125% (Community Facilities District No. 6 (4S Ranch))/(Original Issue Yield: 5.21%), 9/1/2035
    
560,352
 
1,000,000
  
Rancho Mirage Joint Powers Financing Authority, CA, Revenue Bonds (Series 2004), 5.875% (Eisenhower Medical Center)/(United States Treasury PRF 7/1/2014@100), 7/1/2026
    
1,130,310
 
1,000,000
  
Regents of University of California, General Revenue Bonds (Series 2008L), 5.00%, 5/15/2038
    
1,026,860
 
500,000
  
Riverside, CA Hunter Park Assessment District, LT Obligation Improvement Bonds, 5.20% (Original Issue Yield: 5.25%), 9/2/2036
    
420,300
 
1,000,000
  
Sacramento, CA Municipal Utility District, Electric Revenue Refunding Bond (Series 2008U), 5.00% (FSA INS), 8/15/2028
    
1,044,660
 
1,000,000
  
San Bernardino County, CA Housing Authority, Multifamily Mortgage Revenue Bonds (Series 2001A), 6.70% (Glen Aire Park)/(GTD by GNMA Collateralized Home Mortgage Program), 12/20/2041
    
1,082,600
 
349,000
4
San Bernardino County, CA Housing Authority, Subordinated Revenue Bonds, 7.25% (Glen Aire Park & Pacific Palms), 4/15/2042
    
216,069
 
1,000,000
  
San Diego County, CA, COPs, 5.25% (University of San Diego)/(Original Issue Yield: 5.47%), 10/1/2021
    
1,018,800
 
300,000
  
San Dimas, CA Housing Authority, Mobile Home Park Revenue Bonds (Series 1998A), 5.70% (Charter Oak Mobile Home Estates Acquisition Project)/(Original Issue Yield: 5.90%), 7/1/2028
    
290,712
 
200,000
  
San Francisco, CA City & County Airport Commission, Revenue Refunding Bonds (Issue 34D), 5.25% (Assured Guaranty Corp. INS), 5/1/2025
    
209,280
 
400,000
  
San Francisco, CA City & County Redevelopment Agency Community Facilities District No. 6, Special Tax Revenue Bonds, 6.625% (Mission Bay South), 8/1/2027
    
406,968
 
1,000,000
  
San Jose, CA Redevelopment Agency, Merged Area Redevelopment Project Tax Allocation Bonds (Series 2006B), 5.00% (Radian Asset Assurance INS), 8/1/2032
    
959,310
 
500,000
  
San Mateo, CA Redevelopment Agency, Merged Area Tax Allocation Bonds (Series 2001A), 5.50% (United States Treasury PRF 8/1/2011@100)/(Original Issue Yield: 5.55%), 8/1/2022
    
543,185
 
3,250,000
3
Sanger, CA Unified School District, UT GO Bonds (Series 2006A), (FSA INS), 4.71%, 8/1/2029
    
1,096,258
 
1,000,000
  
Santa Clara County, CA Housing Authority, MFH Revenue Bonds (Series 2001A), 5.85% (River Town Apartments Project), 8/1/2031
    
1,016,950
 
1,000,000
  
South Orange County, CA Public Financing Authority, 1999 Reassessment Revenue Bonds, 5.80% (FSA INS)/(Original Issue Yield: 5.85%), 9/2/2018
    
1,044,080
 
400,000
  
Stockton, CA Community Facilities District No. 2001-1, Special Tax Revenue Bonds, 6.375% (Spanos Park West)/(United States Treasury PRF 9/1/2012@102)/(Original Issue Yield: 6.43%), 9/1/2032
    
458,868
 
1,400,000
  
Stockton, CA, COPs (Series 1999), 5.875% (United States Treasury PRF 8/1/2009@101)/
(Original Issue Yield: 5.90%), 8/1/2019
    
1,476,202
 
1,000,000
  
Sweetwater, CA Union High School District Public Financing Authority, Revenue Bonds (Series 2005A), 5.00% (FSA INS), 9/1/2029
    
1,025,600
 
1,000,000
  
Torrance, CA, Hospital Revenue Bonds (Series 2001 A), 5.50% (Torrance Memorial Medical Center)/(Original Issue Yield: 5.65%), 6/1/2031
    
1,005,700
 
1,000,000
  
Vallejo, CA Unified School District, UT GO Bonds, 5.90% (MBIA Insurance Corp. INS), 2/1/2021
    
1,066,200
 
1,000,000
  
Vista, CA Community Development Commission, Tax Allocation Bonds (Series 2001), 5.80% (Vista Redevelopment Project Area)/(Original Issue Yield: 5.85%), 9/1/2030
    
1,004,080
 
410,000
  
Watsonville, CA, Insured Hospital Revenue Refunding Bonds (Series 1996A), 6.20% (Watsonville Community Hospital)/(Escrowed In Treasuries COL)/(Original Issue Yield: 6.225%), 7/1/2012
    
441,090
 
1,000,000
  
West Sacramento, CA Financing Authority, Special Tax Revenue Bonds (Series 2006A), 5.00% (XL Capital Assurance Inc. INS), 9/1/2026
    
1,028,980
 
1,000,000
  
Whittier, CA, Health Facilities Revenue Bonds, 5.75% (Presbyterian Intercommunity Hospital)/(United States Treasury PRF 6/1/2012@101)/(Original Issue Yield: 5.80%), 6/1/2031
    
1,115,770
     
TOTAL
    
75,712,725
     
Puerto Rico--0.8%
      
 
595,000
  
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Cogeneration Facility Revenue Bonds (Series 2000A), 6.625% (AES Puerto Rico Project)/(Original Issue Yield: 6.65%), 6/1/2026
    
610,815
     
TOTAL MUNICIPAL BONDS (IDENTIFIED COST $76,331,968)
    
76,323,540
     
SHORT-TERM MUNICIPALS – 2.6%5
      
     
California--2.6%
      
 
1,850,000
  
M-S-R Public Power Agency, CA, (Series 1998-F: San Juan Project) Daily VRDNs (MBIA Insurance Corp. INS)/(JPMorgan Chase Bank, N.A. LIQ), 1.700%, 6/2/2008 (AT COST)
    
1,850,000
     
TOTAL INVESTMENTS --- 108.0%
(IDENTIFIED COST $78,181,968)6
    
78,173,540
     
OTHER ASSETS AND LIABILITIES – NET – (8.0)% 7
    
(5,780,748)
     
TOTAL NET ASSETS – 100%
  
$
72,392,792

 
At May 31, 2008, the Fund had the following open swap/rate lock contracts:
 
Counterparty
Pay
 
Receive
Expiration Date
Notional
Amount
Value
 
Goldman Sachs & Co.
4.71%
10 Year MMD Rate Lock
6/5/2008
$1,400,000
$(66,061)
 
Value of Swap/Rate Lock Contracts is included in “Other Assets and Liabilities – Net”.
   
 
Securities that are subject to the federal alternative minimum tax (AMT) represent 10.3% of the Fund’s portfolio as calculated based upon total market value.
   
1
Denotes a restricted security that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) is subject to a contractual restriction on public sales. At May 31, 2008, these restricted securities amounted to $5,463,970, which represented 7.5% of total net assets.
2
Denotes a restricted security that may be resold without restriction to “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933 and that the Fund has determined to be liquid under criteria established by the Fund's Board of Trustees (the “Trustees”). At May 31, 2008, these liquid restricted securities amounted to $1,543,995, which represented 2.1% of total net assets.
 
Additional information on restricted securities, excluding securities purchased under Rule 144A that have been deemed liquid by the Trustees, held at May 31, 2008, is as follows:
 
Security
Acquisition Date
Acquisition Cost
 
California PCFA, Solid Waste Disposal Revenue Bonds (Series 2005A-2), 5.40% (Waste Management, Inc.), 4/1/2025
3/30/2005
$1,000,000
 
California PCFA, Solid Waste Disposal Revenue Bonds, 5.125% TOBs (Waste Management, Inc.), Mandatory Tender 5/1/2014
4/30/2004
$750,000
 
California Statewide Communities Development Authority, Revenue Bonds (Series 2001), 6.75% (St. Mark's School), 6/1/2028
7/3/2001
$475,000
 
California Statewide Communities Development Authority, Revenue Bonds (Series 2002), 6.75% (Prospect Sierra School)/(United States Treasury PRF 9/1/2010@103)/(Original Issue Yield: 6.85%), 9/1/2032
5/10/2002
$395,254
 
California Statewide Communities Development Authority, Revenue Bonds (Series 2005A), 4.875% (Thomas Jefferson School of Law)/(United States Treasury PRF 10/1/2015@100)/
(Original Issue Yield: 4.93%), 10/1/2035
8/26/2005
$396,710
 
California Statewide Communities Development Authority, Revenue Bonds, 6.50% (Turningpoint School), 11/1/2031
3/23/2001
$500,000
 
Community Facilities District No. 3 (Liberty Station), Special Tax Bonds (Series 2006A), 5.75%, 9/1/2036
6/30/2006
$425,000
3
Zero coupon bond, reflects effective rate at time of purchase.
4
Non-income producing security.
5
Current rate and next reset date shown for Variable Rate Demand Notes.
6
At May 31, 2008, the cost of investments for federal tax purposes was $78,176,076. The net unrealized depreciation of investments for federal tax purposes excluding any unrealized depreciation resulting from swap/rate lock contracts was $2,536. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $2,056,821 and net unrealized depreciation from investments for those securities having an excess of cost over value of $2,059,357.
7
Assets, other than investments in securities, less liabilities.

Note:           The categories of investments are shown as a percentage of total net assets at May 31, 2008.
 
Investment Valuation
 
In calculating its net asset value (NAV), the Fund generally values investments as follows:
 
·  
Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Trustees.
 
·  
Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).
 
·  
Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
 
·  
Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.
 
·  
Shares of other mutual funds are valued based upon their reported NAVs.
 
If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund’s NAV.
 
 
Fair Valuation and Significant Events Procedures
 
The Trustees have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV.  Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers, and general market conditions.  Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation).  Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a “mid” evaluation).  The Fund normally uses bid evaluations for U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities.  The Fund normally uses mid evaluations for other types of fixed income securities and OTC derivative contracts.  In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.
 
The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment’s value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:
 
·  
With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets;  
 
·  
Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
 
·  
Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer’s operations or regulatory changes or market developments affecting the issuer’s industry.
 
The Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Trustees.
 

The following acronyms are used throughout this portfolio:
 
AMBAC
--American Municipal Bond Assurance Corporation
COL
--Collateralized
COPs
--Certificates of Participation
FGIC
--Financial Guaranty Insurance Company
FSA
--Financial Security Assurance
GNMA
--Government National Mortgage Association
GO
--General Obligation
GTD
--Guaranteed
HDFA
--Housing Development Finance Authority
INS
--Insured
LIQ
--Liquidity Agreement
LOC
--Letter of Credit
LT
--Limited Tax
MFH
--Multi-Family Housing
PCFA
--Pollution Control Finance Authority
PRF
--Prerefunded
SFM
--Single Family Mortgage
TOBs
--Tender Option Bonds
UT
--Unlimited Tax
VRDNs
--Variable Rate Demand Notes

 
 
 

Federated Municipal High Yield Advantage Fund
 
Portfolio of Investments
 
May 31, 2008 (unaudited)
 
 
Principal
Amount
        
Value

     
MUNICIPAL BONDS--94.1%
      
     
Alabama--1.5%
      
$
2,000,000
  
Courtland, AL IDB, Solid Waste Disposal Revenue Refunding Bonds (Series 2005B), 5.20% (International Paper Co.), 6/1/2025
  
$
1,747,480
 
2,000,000
  
Huntsville, AL Special Care Facilities Financing Authority, Retirement Facility Revenue Bonds (Series 2007), 5.50% (Redstone Village)/(Original Issue Yield: 5.60%), 1/1/2043
    
1,678,320
 
2,000,000
  
Mobile County, AL IDA, IDRBs (Series 2000), 6.875% TOBs (Ipsco, Inc.), Mandatory Tender 5/1/2010
    
2,024,200
 
545,000
  
Montgomery, AL Medical Clinic Board, Health Care Facility Revenue Bonds (Series 2006), 5.25% (Jackson Hospital & Clinic, Inc.), 3/1/2036
    
497,552
 
2,100,000
  
Sylacauga, AL Health Care Authority, Revenue Bonds (Series 2005A), 6.00% (Coosa Valley Medical Center)/(Original Issue Yield: 6.05%), 8/1/2035
    
1,916,985
     
TOTAL
    
7,864,537
     
Alaska--1.8%
      
 
1,000,000
  
Alaska Industrial Development and Export Authority, Community Provider Revenue Bonds (Series 2007C), 6.00% (Boys & Girls Home & Family Services, Inc.), 12/1/2036
    
892,970
 
1,440,000
  
Alaska Industrial Development and Export Authority, Power Revenue Bonds, 5.875% (Upper Lynn Canal Regional Power Supply System)/(Original Issue Yield: 6.00%), 1/1/2032
    
1,279,397
 
8,260,000
  
Alaska State Housing Finance Corp., Home Mortgage Bonds (Series 2006B), 4.80% (MBIA Insurance Corp. INS), 12/1/2036
    
7,384,770
     
TOTAL
    
9,557,137
     
Arizona--1.5%
      
 
5,680,000
1
Arizona Health Facilities Authority, RITES (PA-1454), 2.39% (Phoenix Children's Hospital), 8/1/2011
    
4,387,800
 
2,500,000
  
Phoenix, AZ Civic Improvement Corp., Senior Lien Airport Revenue Bonds (Series 2008A), 5.00%, 7/1/2028
    
2,527,550
 
1,000,000
1
Watson Road Community Facilities District, AZ, Special Assessment Revenue Bonds (Series 2005), 6.00%, 7/1/2030
    
945,090
     
TOTAL
    
7,860,440
     
California--4.9%
      
 
2,000,000
  
California Infrastructure & Economic Development Bank, Revenue Bonds (Series 2008), 5.25% (Walt Disney Family Museum)/(Original Issue Yield: 5.50%), 2/1/2038
    
2,040,900
 
1,000,000
1
California PCFA, Solid Waste Disposal Revenue Bonds (Series 2002B), 5.00% (Waste Management, Inc.), 7/1/2027
    
874,340
 
1,000,000
1
California PCFA, Solid Waste Disposal Revenue Bonds (Series 2005A-2), 5.40% (Waste Management, Inc.), 4/1/2025
    
932,860
 
2,000,000
  
California State, UT GO Bonds (Series 2008), 5.00%, 4/1/2016
    
2,149,300
 
1,255,000
1
California Statewide Communities Development Authority, MFH Revenue Bonds (Series 1999X), 6.65% (Magnolia City Lights Project), 7/1/2039
    
1,269,156
 
2,000,000
  
California Statewide Communities Development Authority, Revenue Bonds (Series 2007A), 5.125% (Front Porch at Walnut Village), 4/1/2037
    
1,804,100
 
970,000
1
California Statewide Communities Development Authority, Revenue Bonds, 6.625% (Tehiyah Day School), 11/1/2031
    
935,895
 
2,000,000
  
Golden State Tobacco Securitization Corp., CA, Enhanced Tobacco Settlement Asset-Backed Bonds (Series 2005A), 5.00% (California State), 6/1/2045
    
1,851,480
 
530,000
  
Golden State Tobacco Securitization Corp., CA, Tobacco Settlement Asset-Backed Bonds (Series 2007A-1), 5.75%, 6/1/2047
    
460,596
 
2,825,000
  
Golden State Tobacco Securitization Corp., CA, Tobacco Settlement Asset-Backed Revenue Bonds (Series 2003A-1), 6.75% (United States Treasury PRF 6/1/2013@100)/(Original Issue Yield: 7.00%), 6/1/2039
    
3,242,733
 
6,000,000
  
Golden State Tobacco Securitization Corp., CA, Tobacco Settlement Asset-Backed Revenue Bonds (Series 2007A-1), 5.125% (Original Issue Yield: 5.27%), 6/1/2047
    
4,677,300
 
750,000
  
Golden State Tobacco Securitization Corp., CA, Tobacco Settlement Revenue Bonds (Series 2003A-2), 7.90% (United States Treasury PRF 6/1/2013@100), 6/1/2042
    
898,035
 
1,000,000
  
Los Angeles, CA Regional Airport Improvement Corp., Facilities Sublease Refunding Revenue Bonds (Series 2002B), 7.50% (American Airlines, Inc.)/(Original Issue Yield: 7.929%), 12/1/2024
    
940,720
 
2,000,000
  
Los Angeles, CA Regional Airport Improvement Corp., Lease Revenue Bonds, (Series C), 7.50% (American Airlines, Inc.)/(Original Issue Yield: 7.929%), 12/1/2024
    
1,869,460
 
1,000,000
  
Oxnard, CA Community Facilities District No. 3, Special Tax Bonds (Series 2005), 5.00% (Seabridge at Mandalay Bay)/(Original Issue Yield: 5.22%), 9/1/2035
    
818,240
 
349,000
3
San Bernardino County, CA Housing Authority, Subordinated Revenue Bonds, 7.25% (Glen Aire Park & Pacific Palms), 4/15/2042
    
216,069
 
1,000,000
  
Western Hills Water District, CA, Special Tax Revenue Bonds, 6.875% (Diablo Grande Community Facilities No. 1)/(Original Issue Yield: 6.954%), 9/1/2031
    
744,150
     
TOTAL
    
25,725,334
     
Colorado--7.7%
      
 
1,500,000
  
Aspen Grove, CO Business Improvement District, LT Tax GO Bonds (Series 2001), 7.625% (United States Treasury PRF 12/1/2011@101), 12/1/2025
    
1,713,825
 
2,000,000
  
Aurora, CO, Hospital Revenue Bonds (Series 2004C), 4.625% (Children's Hospital Association, CO)/(FSA INS)/(Original Issue Yield: 4.813%), 12/1/2029
    
1,935,140
 
2,000,000
  
Beacon Point, CO Metropolitan District, Revenue Bonds (Series 2005A), 6.25% (Original Issue Yield: 6.375%), 12/1/2035
    
1,712,700
 
1,500,000
  
Castle Oaks, CO Metropolitan District, LT GO Bonds (Series 2005), 6.125%, 12/1/2035
    
1,249,275
 
1,500,000
  
Colorado Educational & Cultural Facilities Authority, Charter School Revenue Bonds (Series 2001), 7.625% (Peak to Peak Charter School Project)/(United States Treasury PRF 8/15/2011@100)/(Original Issue Yield: 8.00%), 8/15/2031
    
1,720,305
 
970,000
  
Colorado Educational & Cultural Facilities Authority, Charter School Revenue Bonds (Series 2005), 6.50% (Knowledge Quest Academy), 5/1/2036
    
943,189
 
800,000
  
Colorado Educational & Cultural Facilities Authority, Charter School Revenue Bonds (Series 2007A), 5.70% (Windsor Charter Academy)/(Original Issue Yield: 5.70%), 5/1/2037
    
694,112
 
860,000
  
Colorado Educational & Cultural Facilities Authority, Charter School Revenue Bonds (Series 2007A), 5.75% (Northeast Academy Charter School), 5/15/2037
    
757,101
 
1,000,000
  
Colorado Educational & Cultural Facilities Authority, Charter School Revenue Bonds (Series 2007A), 6.00% (Monument Academy Charter School), 10/1/2037
    
882,750
 
1,000,000
  
Colorado Educational & Cultural Facilities Authority, Charter School Revenue Bonds, 7.375% (Frontier Academy)/(United States Treasury PRF 6/1/2011@100)/(Original Issue Yield: 7.50%), 6/1/2031
    
1,126,270
 
500,000
  
Colorado Educational & Cultural Facilities Authority, Charter School Revenue Bonds, 7.25% (Platte River Academy)/(United States Treasury PRF 3/1/2010@100)/(Original Issue Yield: 7.50%), 3/1/2032
    
542,135
 
760,000
  
Colorado Educational & Cultural Facilities Authority, Charter School Revenue Bonds, 7.50% (Excel Academy)/(United States Treasury PRF 12/1/2011@100)/(Original Issue Yield: 7.75%), 12/1/2033
    
877,458
 
800,000
  
Colorado Educational & Cultural Facilities Authority, Revenue Refunding Bonds (Series A), 7.125% (Denver Academy)/(Original Issue Yield: 7.375%), 11/1/2028
    
844,088
 
1,000,000
  
Colorado Health Facilities Authority, Health & Residential Care Facilities Revenue Bonds (Series 2007), 5.30% (Volunteers of America Care Facilities), 7/1/2037
    
829,420
 
1,000,000
  
Colorado Health Facilities Authority, Health Facilities Revenue Bonds (Series 2005), 5.25% (Evangelical Lutheran Good Samaritan Society), 6/1/2023
    
1,009,750
 
4,250,000
  
Colorado Health Facilities Authority, Revenue Bonds (Series 2005), 5.00% (Covenant Retirement Communities, Inc.)/(Original Issue Yield: 5.05%), 12/1/2035
    
3,580,837
 
1,000,000
  
Colorado Health Facilities Authority, Revenue Bonds (Series 2006A), 5.75% (Christian Living Communities), 1/1/2037
    
891,860
 
2,000,000
  
Colorado Springs Urban Renewal Authority, Tax Increment Revenue Bonds (Series 2007), 7.00% (University Village Colorado), 12/1/2029
    
1,918,680
 
1,000,000
  
Conservatory Metropolitan District, CO, LT GO Bonds, 6.75% (United States Treasury PRF 12/1/2013@102), 12/1/2034
    
1,189,740
 
1,000,000
  
Conservatory Metropolitan District, CO, LT GO Bonds, 7.55% (United States Treasury PRF 12/1/2013@102), 12/1/2032
    
1,227,320
 
1,335,000
  
Conservatory Metropolitan District, CO, Refunding & Improvement LT GO Bonds, 5.125% (Radian Asset Assurance INS), 12/1/2037
    
1,314,040
 
500,000
  
Denver, CO Health & Hospital Authority, Healthcare Revenue Bonds (Series 2001A), 6.00% (United States Treasury PRF 12/1/2011@100)/(Original Issue Yield: 6.05%), 12/1/2031
    
551,905
 
1,125,000
  
E-470 Public Highway Authority, CO, Senior Revenue Bonds (Series 2007D1), 5.50% (MBIA Insurance Corp. INS), 9/1/2024
    
1,167,086
 
450,000
  
Eagle County, CO Air Terminal Corp., Airport Terminal Project Revenue Improvement Bonds (Series 2006B), 5.25%, 5/1/2020
    
413,046
 
1,000,000
  
Granby Ranch, CO Metropolitan District, LT GO Bonds (Series 2006), 6.75%, 12/1/2036
    
903,630
 
500,000
  
Maher Ranch, CO Metropolitan District No. 4, LT GO Bonds (Series 2006), 7.00% (United States Treasury PRF 12/1/2013@102), 12/1/2036
    
603,085
 
1,000,000
  
Maher Ranch, CO Metropolitan District No. 4, LT GO Bonds, 7.875% (United States Treasury PRF 12/1/2013@102), 12/1/2033
    
1,247,390
 
1,770,000
  
Murphy Creek, CO Metropolitan District No. 3, Refunding & Improvement LT GO Bonds, 6.00%, 12/1/2026
    
1,457,843
 
2,235,000
  
Northwest, CO Metropolitan District No. 3, LT GO Bonds (Series 2005), 6.25%, 12/1/2035
    
1,893,514
 
1,500,000
  
Southlands, CO Metropolitan District No. 1, LT GO Bonds (Series 2004), 7.125% (United States Treasury PRF 12/1/2014@100)/(Original Issue Yield: 7.18%), 12/1/2034
    
1,818,360
 
2,000,000
  
Sterling Hills West Metropolitan District, LT GO Bonds (Series 2001B), 8.00% (United States Treasury PRF 12/1/2011@101), 12/1/2021
    
2,344,240
 
2,000,000
  
Tallgrass Metropolitan District, CO, Refunding & Improvement LT GO Bonds (Series 2007), 5.25%, 12/1/2037
    
1,611,780
     
TOTAL
    
40,971,874
     
Connecticut--0.4%
      
 
1,000,000
  
Connecticut Development Authority, Airport Facility Revenue Bonds, 7.95% (Bombardier, Inc.), 4/1/2026
    
1,079,780
 
800,000
  
Connecticut State HEFA, Revenue Bonds (Series 2005C), 5.125% (Eastern Connecticut Health Network)/(Radian Asset Assurance INS), 7/1/2030
    
799,440
     
TOTAL
    
1,879,220
     
District of Columbia--0.3%
      
 
25,000,000
4
District of Columbia Tobacco Settlement Financing Corp., Tobacco Settlement Asset-Backed Bonds (Series 2006), 8.64% (Original Issue Yield: 6.25%), 6/15/2046
    
1,453,500
     
Florida--6.4%
      
 
3,000,000
  
Alachua County, FL, IDRBs (Series 2007A), 5.875% (North Florida Retirement Village, Inc,), 11/15/2042
    
2,677,020
 
1,480,000
  
Arborwood, FL Community Development District, Capital Improvement Revenue Bonds (Series 2005A), 5.35%, 5/1/2036
    
1,140,828
 
1,000,000
  
Ave Maria Stewardship Community District, FL, Capital Improvement Revenue Bonds (Series 2006A), 5.125% (Original Issue Yield: 5.15%), 5/1/2038
    
750,360
 
109,218
3
Capital Trust Agency, FL, Housing Revenue Notes, 4.25% (Atlantic Housing Foundation Properties), 7/1/2040
    
73,506
 
1,000,000
1
Capital Trust Agency, FL, Revenue Bonds (Series 2003A), 8.95% (Seminole Tribe of Florida Convention and Resort Hotel Facilities)/(United States Treasury PRF 10/1/2012@102), 10/1/2033
    
1,234,210
 
795,000
  
East Homestead, FL Community Development District, Special Assessment Revenue Bonds (Series 2005), 5.45%, 5/1/2036
    
630,125
 
970,000
  
East Homestead, FL Community Development District, Special Assessment Revenue Bonds (Series 2006), 5.375%, 5/1/2036
    
761,072
 
335,000
  
East Homestead, FL Community Development District, Special Assessment Revenue Bonds (Series 2006B), 5.00%, 5/1/2011
    
317,814
 
385,000
  
Fishhawk Community Development District II, Special Assessment Revenue Bonds (Series 2004B), 5.125% (Original Issue Yield: 5.20%), 11/1/2009
    
378,416
 
3,000,000
  
Grand Bay at Doral Community Development District, FL, Special Assessment Bonds (Series 2007B), 6.00%, 5/1/2017
    
2,638,020
 
1,000,000
  
Greater Orlando, FL Aviation Authority, Special Purpose Airport Facilities Revenue Bonds (Series 2005), 6.50% (Jet Blue Airways Corp.)/(Original Issue Yield: 6.811%), 11/15/2036
    
794,620
 
615,000
  
Harbor Bay, FL Community Development District, Special Assessment Capital Improvement Revenue Bonds (Series 2001B), 6.35%, 5/1/2010
    
612,448
 
1,000,000
  
Highlands County, FL Health Facilities Authority, Hospital Revenue Bonds (Series 2001A), 6.00% (Adventist Health System/Sunbelt Obligated Group)/(United States Treasury PRF 11/15/2011@101)/(Original Issue Yield: 6.026%), 11/15/2031
    
1,109,120
 
990,000
  
Lakes by the Bay South Community Development District, FL, Special Assessment Revenue Bonds (Series 2004A), 6.25% (Original Issue Yield: 6.277%), 5/1/2034
    
961,528
 
2,000,000
  
Lee County, FL IDA, Health Care Facilities Revenue Bond (Series A), 6.75% (Cypress Cove at Healthpark)/(Original Issue Yield: 6.98%), 10/1/2032
    
2,024,700
 
860,000
  
Mediterra North Community Development District, FL, Capital Improvement Revenue Bonds (Series A), 6.80%, 5/1/2031
    
882,756
 
1,000,000
  
Miami Beach, FL Health Facilities Authority, Hospital Revenue Bonds (Series 2001A), 6.70% (Mt. Sinai Medical Center, FL)/(Original Issue Yield: 6.80%), 11/15/2019
    
1,026,910
 
1,000,000
  
Midtown Miami, FL Community Development District, Special Assessment Bonds (Series 2004A), 6.25% (Original Issue Yield: 6.30%), 5/1/2037
    
926,010
 
2,000,000
  
Orange County, FL, Health Facilities Authority, Hospital Revenue Bonds (Series 2008C), 5.25% (Orlando Regional Healthcare System)/(Original Issue Yield: 5.42%), 10/1/2035
    
1,960,040
 
930,000
  
Orlando, FL Urban Community Development District, Capital Improvement Revenue Bonds (Series 2001A), 6.95% (United States Treasury PRF 5/1/2011@101)/(Original Issue Yield: 7.00%), 5/1/2033
    
1,030,245
 
600,000
  
Orlando, FL Urban Community Development District, Capital Improvement Revenue Bonds, 6.25%, 5/1/2034
    
545,814
 
2,000,000
1
Palm Beach County, FL, Tax-Exempt Revenue Bonds (Series 2005A), 6.75% (G-Star School of the Arts for Motion Pictures and Broadcasting Charter School), 5/15/2035
    
1,970,640
 
1,000,000
  
Reunion East Community Development District, FL, Special Assessment Bonds (Series 2002A), 7.375%, 5/1/2033
    
1,036,690
 
1,200,000
  
South Lake County, FL Hospital District, Revenue Bonds, 6.625% (South Lake Hospital, Inc.), 10/1/2023
    
1,261,020
 
700,000
  
Tern Bay, FL Community Development District, Capital Improvement Revenue Bonds (Series 2005), 5.00%, 5/1/2015
    
419,993
 
1,755,000
  
Tolomato Community Development District, FL, Special Assessment Revenue Bonds (Series 2006), 5.40%, 5/1/2037
    
1,434,484
 
1,000,000
  
Tolomato Community Development District, FL, Special Assessment Revenue Bonds (Series 2007), 6.55% (Original Issue Yield: 6.60%), 5/1/2027
    
977,690
 
490,000
  
Tuscany Reserve Community Development District, FL, Capital Improvement Revenue Bonds (Series 2005A), 5.55%, 5/1/2036
    
380,274
 
335,000
  
Tuscany Reserve Community Development District, FL, Capital Improvement Revenue Bonds (Series 2005B), 5.25%, 5/1/2016
    
291,118
 
990,000
  
Verandah East, FL Community Development District, Capital Improvement Revenue Bonds (Series 2006A), 5.40%, 5/1/2037
    
777,407
 
835,000
  
Verandah West, FL Community Development District, Capital Improvement Revenue Bonds (Series 2003A), 6.625% (Original Issue Yield: 6.75%), 5/1/2033
    
840,812
 
1,630,000
  
Volusia County, FL Education Facility Authority, Educational Facilities Refunding Revenue Bonds (Series 2005), 5.00% (Embry-Riddle Aeronautical University, Inc.)/(Radian Asset Assurance INS), 10/15/2025
    
1,598,378
 
495,000
  
Winter Garden Village at Fowler Groves Community Development District, FL, Special Assessment Bonds (Series 2006), 5.65%, 5/1/2037
    
417,364
     
TOTAL
    
33,881,432
     
Georgia--1.6%
      
 
1,685,000
  
Atlanta, GA, Tax Allocation Bonds (Series 2001), 7.75% (Atlantic Station Project)/(United States Treasury PRF 12/1/2011@101)/(Original Issue Yield: 7.90%), 12/1/2014
    
1,902,095
 
770,000
  
Atlanta, GA, Tax Allocation Bonds (Series 2005B), 5.60% (Eastside Tax Allocation District)/(Original Issue Yield: 5.65%), 1/1/2030
    
699,414
 
1,225,000
  
Atlanta, GA, Tax Allocation Bonds (Series 2006), 5.50% (Princeton Lakes), 1/1/2031
    
1,103,615
 
1,000,000
  
Augusta, GA Airport, General Passenger Facilities Charge Revenue Bonds, (Series A), 5.15%, 1/1/2035
    
866,320
 
750,000
  
Augusta, GA Airport, General Passenger Facilities Charge Revenue Bonds, (Series B), 5.35%, 1/1/2028
    
670,807
 
1,875,000
  
Augusta, GA HFA, MFH Refunding Revenue Bonds, 6.55% (Forest Brook Apartments), 12/1/2030
    
1,875,000
 
750,000
  
Fulton County, GA Residential Care Facilities, Revenue Bonds (Series 2004A), 6.00% (Canterbury Court), 2/15/2022
    
720,165
 
1,000,000
  
Medical Center Hospital Authority, GA, Revenue Refunding Bonds (Series 2007), 5.25% (Spring Harbor at Green Island), 7/1/2037
    
801,410
     
TOTAL
    
8,638,826
     
Guam--0.2%
      
 
1,000,000
  
Guam Government, UT GO Bonds (Series 2007A), 5.25% (Original Issue Yield: 5.45%), 11/15/2037
    
900,050
     
Hawaii--0.4%
      
 
1,000,000
  
Hawaii State Department of Budget & Finance, Special Purpose Revenue Bonds (Series A), 7.00% (Kahala Nui)/(Original Issue Yield: 7.00%), 11/15/2012
    
1,062,210
 
1,000,000
  
Hawaii State Department of Budget & Finance, Special Purpose Revenue Bonds (Series A), 8.00% (Kahala Nui)/(Original Issue Yield: 8.175%), 11/15/2033
    
1,093,170
     
TOTAL
    
2,155,380
     
Idaho--0.5%
      
 
3,810,000
1,2
Idaho Housing Agency, Residual Interest Trust Receipts (Series K39W), 8.54% (Original Issue Yield: 6.30%), 4/13/2032
    
2,977,820
     
Illinois--2.8%
      
 
625,000
  
Bolingbrook, IL, Special Service Area No. 2005-1 Special Tax Bonds (Series 2005), 5.90% (Forest City Project)/(Original Issue Yield: 5.90%), 3/1/2027
    
604,981
 
1,000,000
  
Chicago, IL O'Hare International Airport, General Airport Third Lien Revenue Bonds (Series 2005A), 5.00% (FGIC INS), 1/1/2033
    
973,730
 
415,000
  
DuPage County, IL, Special Tax Bonds (Series 2006), 5.625% (Naperville Campus LLC), 3/1/2036
    
357,203
 
1,335,000
  
Harvey, IL, Refunding & Improvement UT GO Bonds (Series 2007A), 5.625%, 12/1/2032
    
1,246,062
 
250,000
  
Illinois Finance Authority, Bond Anticipation Notes (Series 2007), 13.00% (GreenFields of Geneva (Tallgrass)), 2/15/2012
    
244,215
 
1,000,000
  
Illinois Finance Authority, MFH Revenue Bonds (Series 2007), 6.10% (Dekalb Supportive Living Facility), 12/1/2041
    
881,930
 
1,000,000
  
Illinois Finance Authority, Revenue Bonds (Series 2005A), 5.625% (Friendship Village of Schaumburg)/(Original Issue Yield: 5.70%), 2/15/2037
    
818,810
 
1,250,000
  
Illinois Finance Authority, Revenue Bonds (Series 2005A), 6.00% (Landing at Plymouth Place)/(Original Issue Yield: 6.04%), 5/15/2037
    
1,129,912
 
2,000,000
  
Illinois Finance Authority, Revenue Bonds (Series 2005A), 6.125% (Clare at Water Tower)/
(Original Issue Yield: 6.25%), 5/15/2038
    
1,836,500
 
1,500,000
  
Illinois Finance Authority, Revenue Bonds (Series 2005A), 6.25% (Smith Village), 11/15/2035
    
1,399,710
 
1,500,000
  
Illinois Finance Authority, Revenue Refunding Bonds (Series 2006A), 5.125% (Proctor Hospital)/(Original Issue Yield: 5.20%), 1/1/2025
    
1,377,990
 
1,000,000
  
Illinois Finance Authority, Solid Waste Disposal Revenue Bonds, 5.05% (Waste Management, Inc.), 8/1/2029
    
853,210
 
1,000,000
  
Illinois Health Facilities Authority, Revenue Bonds (Series 2006), 5.25% (Tabor Hills Supportive Living LLC), 11/15/2036
    
878,520
 
1,000,000
  
Quad Cities, IL Regional EDA, MFH Revenue Bonds (Series 2006), 6.00% (Heritage Woods of Moline SLF ), 12/1/2041
    
869,100
 
1,500,000
  
Will-Kankakee, IL Regional Development Authority, MFH Revenue Bonds (Series 2007), 7.00% (Senior Estates Supportive Living), 12/1/2042
    
1,467,555
     
TOTAL
    
14,939,428
     
Indiana--2.4%
      
 
1,000,000
  
Goshen, IN, Revenue Bonds (Series 1998), 5.75% (Greencroft Obligated Group)/(Original Issue Yield: 5.87%), 8/15/2028
    
905,260
 
2,000,000
  
Indiana Bond Bank, Index Rate Special Program Gas Revenue Bonds (Series 2007B-2), 2.28% (Indiana Municipal Gas Purchasing Authority, Inc.), 10/15/2022
    
1,880,000
 
2,000,000
  
Indiana Health & Educational Facility Financing Authority, Hospital Revenue Bonds (Series 2007), 5.50% (Community Foundation of Northwest Indiana), 3/1/2037
    
1,774,040
 
730,000
  
Indiana Health Facility Financing Authority, Hospital Revenue Bonds (Series 2001A), 6.375% (Community Foundation of Northwest Indiana)/(Original Issue Yield: 6.68%), 8/1/2031
    
742,848
 
2,270,000
  
Indiana Health Facility Financing Authority, Hospital Revenue Bonds (Series 2001A), 6.375% (Community Foundation of Northwest Indiana)/(United States Treasury PRF 8/1/2011@101)/
(Original Issue Yield: 6.68%), 8/1/2031
    
2,528,576
 
2,000,000
  
Indiana Health Facility Financing Authority, Revenue Refunding Bonds (Series 1998), 5.625% (Greenwood Village South Project)/(Original Issue Yield: 5.802%), 5/15/2028
    
1,781,660
 
1,000,000
  
South Bend, IN, EDRBs (Series 1999A), 6.25% (Southfield Village)/(Original Issue Yield: 6.375%), 11/15/2029
    
948,040
 
1,355,000
  
St. Joseph County, IN Hospital Authority, Health Facilities Revenue Bonds (Series 2005), 5.375% (Madison Center Obligated Group), 2/15/2034
    
1,205,733
 
1,000,000
  
Vigo County, IN Hospital Authority, Hospital Revenue Bond (Series 2007), 5.80% (Union Hospital)/(Original Issue Yield: 5.82%), 9/1/2047
    
874,680
     
TOTAL
    
12,640,837
     
Iowa--1.1%
      
 
375,000
  
Bremer County, IA Retirement Facilities, Retirement Facility Revenue Bonds (Series 2005A), 5.375% (Bartels Lutheran Retirement Community)/(Original Issue Yield: 5.45%), 11/15/2027
    
333,971
 
2,000,000
  
Iowa Finance Authority, Senior Housing Revenue Bonds (Series 2007A), 5.625% (Wedum Walnut Ridge LLC)/(Original Issue Yield: 5.70%), 12/1/2045
    
1,674,880
 
1,715,000
  
Iowa Finance Authority, Senior Living Facility Revenue Refunding Bonds (Series 2007A), 5.50% (Deerfield Retirement Community, Inc.), 11/15/2037
    
1,282,563
 
1,000,000
  
Palo Alto County Hospital, IA, Hospital Revenue Bonds (Series 2006), 5.125% (Original Issue Yield: 5.20%), 8/1/2029
    
828,000
 
1,785,000
  
Wapello County, IA, Revenue Bonds, 6.25% (Ottumwa Regional Health Center)/(United States Treasury PRF 10/1/2012@100)/(Original Issue Yield: 6.40%), 10/1/2022
    
1,989,150
     
TOTAL
    
6,108,564
     
Kansas--2.1%
      
 
1,100,000
  
Labette County, KS, Hospital Refunding & Improvement Revenue Bonds (Series 2007A), 5.75% (Labette Health), 9/1/2037
    
1,044,065
 
1,625,000
  
Manhattan, KS IDRB, Industrial Revenue Bonds (Series 1999), 7.00% (Farrar Corp. Project), 8/1/2014
    
1,647,295
 
1,000,000
  
Manhattan, KS IDRB, Industrial Revenue Bonds (Series 2007), 5.50% (Farrar Corp. Project)/
(Original Issue Yield: 5.55%), 8/1/2021
    
895,180
 
2,015,000
  
Norwich, KS, Industrial Revenue Bonds (Series 2006), 5.90% (Farrar Corp. Project), 8/1/2021
    
1,945,120
 
1,000,000
  
Olathe, KS, Senior Living Facility Revenue Bonds (Series 2000A), 8.00% (Aberdeen Village, Inc.)/(United States Treasury PRF 5/15/2010@102)/(Original Issue Yield: 8.25%), 5/15/2030
    
1,123,940
 
2,000,000
  
Olathe, KS, Senior Living Facility Revenue Bonds (Series 2006A), 6.00% (Catholic Care Campus, Inc.), 11/15/2038
    
1,814,260
 
2,000,000
  
Overland Park, KS Development Corp., First Tier Revenue Bonds (Series 2000A), 7.375% (Overland Park Convention Center Hotel Project)/(United States Treasury PRF 1/1/2011@101)/(Original Issue Yield: 7.50%), 1/1/2032
    
2,239,500
 
290,000
  
Sedgwick & Shawnee Counties, KS, SFM Revenue Bonds (Series 1997A-1), 6.95% (GNMA Home Mortgage Program ), 6/1/2029
    
305,402
     
TOTAL
    
11,014,762
     
Kentucky--0.8%
      
 
2,000,000
  
Kentucky EDFA, Hospital System Refunding Revenue Bonds, 5.875% (Appalachian Regional Health Center)/(Original Issue Yield: 5.92%), 10/1/2022
    
1,876,380
 
435,000
  
Kentucky EDFA, Revenue Bonds (Series 2000A), 6.625% (Norton Healthcare, Inc.)/(Original Issue Yield: 6.97%), 10/1/2028
    
458,077
 
1,565,000
  
Kentucky EDFA, Revenue Bonds (Series 2000A), 6.625% (Norton Healthcare, Inc.)/(United States Treasury PRF 10/1/2010@101)/(Original Issue Yield: 6.97%), 10/1/2028
    
1,726,430
     
TOTAL
    
4,060,887
     
Louisiana--1.6%
      
 
1,000,000
  
De Soto Parish, LA Environmental Improvement Authority, Revenue Bonds, (Series A), 5.00% (International Paper Co.), 11/1/2018
    
911,710
 
989,000
  
Lakeshore Villages Master Community Development District, LA, Special Assessment Bonds (Series 2007), 5.25% (Original Issue Yield: 5.378%), 7/1/2017
    
888,211
 
2,000,000
  
St. James Parish, LA, Solid Waste Disposal Revenue Bonds, 7.70% (IMC Phosphates Co.)/
(Original Issue Yield: 7.75%), 10/1/2022
    
2,001,160
 
3,000,000
  
St. John the Baptist Parish, LA, Revenue Bonds (Series 2007A), 5.125% (Marathon Oil Corp.), 6/1/2037
    
2,817,210
 
2,000,000
  
West Feliciana Parish, LA, PCR Refunding Bonds (Series 1999B), 6.60% (Entergy Gulf States, Inc.), 9/1/2028
    
2,001,120
     
TOTAL
    
8,619,411
     
Maryland--0.6%
      
 
555,000
  
Baltimore, MD, Special Obligation Revenue Bonds (Series 2008A), 7.00% (East Baltimore Research Park), 9/1/2038
    
556,526
 
925,000
  
Maryland State Economic Development Corp., Health and Mental Hygiene Providers Facilities Acquisition Program Revenue Bonds (Series 2000A), 7.75% (Baltimore Association for Retarded Citizens, Inc. Project)/(Original Issue Yield: 7.85%), 3/1/2025
    
975,264
 
395,000
  
Maryland State Health & Higher Educational Facilities Authority, Revenue Bonds (Series 2007A), 5.25% (King Farm Presbyterian Retirement Community), 1/1/2027
    
341,193
 
1,100,000
  
Maryland State Health & Higher Educational Facilities Authority, Revenue Bonds (Series 2007A), 5.30% (King Farm Presbyterian Retirement Community)/(Original Issue Yield: 5.35%), 1/1/2037
    
905,982
 
500,000
  
Maryland State IDFA, EDRBs (Series 2005A), 6.00% (Our Lady of Good Counsel High School), 5/1/2035
    
500,250
     
TOTAL
    
3,279,215
     
Massachusetts--1.7%
      
 
1,500,000
  
Massachusetts Development Finance Agency, Revenue Bonds (Series 2007A), 5.75% (Linden Ponds, Inc.), 11/15/2042
    
1,306,530
 
2,000,000
  
Massachusetts HEFA, Revenue Bonds (Series 2004A), 6.375% (Northern Berkshire Health System )/(Original Issue Yield: 6.60%), 7/1/2034
    
1,999,860
 
2,000,000
  
Massachusetts HEFA, Revenue Bonds (Series 1999A), 5.75% (Caritas Christi Obligated Group)/(Original Issue Yield: 5.80%), 7/1/2028
    
1,928,400
 
2,000,000
  
Massachusetts HEFA, Revenue Bonds (Series 2002B), 9.20% (Civic Investments)/(United States Treasury PRF 12/15/2012@102), 12/15/2031
    
2,514,580
 
1,000,000
  
Massachusetts HEFA, Revenue Bonds (Series 2003E), 6.75% (Jordan Hospital )/(Original Issue Yield: 7.00%), 10/1/2033
    
1,025,010
     
TOTAL
    
8,774,380
     
Michigan--1.5%
      
 
1,500,000
  
Kent Hospital Finance Authority, MI, Revenue Bonds (Series 2005A), 6.25% (Metropolitan Hospital ), 7/1/2040
    
1,524,750
 
500,000
  
Michigan State Hospital Finance Authority, Hospital Revenue Bonds (Series 2005), 5.00% (Chelsea Community Hospital)/(Original Issue Yield: 5.07%), 5/15/2037
    
422,080
 
5,000,000
  
Michigan Tobacco Settlement Finance Authority, Tobacco Settlement Asset-Backed Bonds (Series 2007A), 6.00% (Original Issue Yield: 6.25%), 6/1/2048
    
4,439,900
 
1,500,000
  
Plymouth, MI Educational Center Charter School, Public School Academy Revenue Refunding Bonds, (Series 2005), 5.625%, 11/1/2035
    
1,371,270
     
TOTAL
    
7,758,000
     
Minnesota--3.4%
      
 
4,000,000
  
Becker, MN, PCRBs (Series 2000-A), 8.50% (Northern States Power Co., MN), 4/1/2030
    
4,672,960
 
550,000
  
Glencoe, MN Health Care Facilities, Revenue Bonds (Series 2005), 5.00% (Glencoe Regional Health Services), 4/1/2031
    
492,734
 
1,300,000
  
Meeker County, MN, Gross Revenue Hospital Facilities Bonds (Series 2007), 5.75% (Meeker County Memorial Hospital), 11/1/2037
    
1,230,437
 
1,000,000
  
Pine City, MN Lease Revenue, Lease Revenue Bonds (Series 2006A), 6.25% (Lakes International Language Academy), 5/1/2035
    
917,480
 
500,000
  
Ramsey, MN, Lease Revenue Bonds (Series 2004A), 6.75% (Pact Charter School), 12/1/2033
    
505,840
 
3,000,000
  
St. Paul, MN Housing & Redevelopment Authority, Health Care Facility Revenue Bonds (Series 2006), 5.25% (HealthPartners Obligated Group), 5/15/2036
    
2,723,040
 
1,000,000
  
St. Paul, MN Housing & Redevelopment Authority, Refunding Revenue Bonds (Series 2003A), 7.00% (Achieve Language Academy ), 12/1/2032
    
1,015,910
 
2,000,000
  
St. Paul, MN Housing & Redevelopment Authority, Revenue Bonds (Series 2002B), 7.00% (Upper Landing Project)/(Original Issue Yield: 7.05%), 3/1/2029
    
2,067,780
 
1,865,000
  
Winona, MN Port Authority, Lease Revenue Bonds (Series 2007A), 6.15% (Bluffview Montessori School Project), 11/1/2037
    
1,751,123
 
2,920,000
  
Winona, MN Port Authority, Lease Revenue Bonds (Series 2007A), 6.15% (Bluffview Montessori School Project), 11/1/2037
    
2,704,738
     
TOTAL
    
18,082,042
     
Mississippi--0.5%
      
 
2,500,000
  
Mississippi Business Finance Corp., PCRBs, 5.875% (System Energy Resources, Inc.)/
(Original Issue Yield: 5.934%), 4/1/2022
    
2,482,025
     
Missouri--2.0%
      
 
2,590,000
  
Cass County, MO, Hospital Revenue Bonds (Series 2007), 5.625% (Cass Medical Center), 5/1/2038
    
2,428,332
 
2,445,000
1
Kansas City, MO IDA, MFH Revenue Bonds, 6.90% (Woodbridge Apartments Project), 8/1/2030
    
2,343,190
 
3,000,000
  
Missouri Development Finance Board, Infrastructure Facilities Revenue Bonds (Series 2005A), 5.00% (Branson, MO), 6/1/2035
    
2,648,580
 
2,000,000
  
Missouri State Environmental Improvement & Energy Resources Authority, Environmental Improvement Revenue Bonds (Series 2008), 4.90% TOBs (Kansas City Power And Light Co.), Mandatory Tender 7/1/2013
    
1,988,360
 
1,000,000
  
St. Joseph, MO IDA, Healthcare Revenue Bonds, 7.00% (Living Community St. Joseph Project), 8/15/2032
    
954,880
 
500,000
  
West Plains, MO IDA, Hospital Revenue Bonds, 6.75% (Ozarks Medical Center)/(Original Issue Yield: 6.78%), 11/15/2024
    
503,565
     
TOTAL
    
10,866,907
     
Nevada--2.3%
      
 
1,000,000
  
Clark County, NV Improvement District, Special Assessment Revenue Refunding Bonds (Series 2006B), 5.30% (Southern Highlands SID No.121-B)/(Original Issue Yield: 5.33%), 12/1/2029
    
814,360
 
4,000,000
  
Clark County, NV School District, LT GO Building Bonds (Series 2008A), 5.00%, 6/15/2025
    
4,176,520
 
985,000
  
Clark County, NV, LO Improvement Bonds (Series 2003), 6.375% (Mountains Edge SID No. 142)/(Original Issue Yield: 6.40%), 8/1/2023
    
938,941
 
925,000
  
Clark County, NV, Local Improvement Bonds (Series 2001), 6.875% (Summerlin-South SID No. 132)/(Original Issue Yield: 6.92%), 2/1/2021
    
945,396
 
1,860,000
  
Clark County, NV, Revenue Bonds, 7.50% (Southern Highlands SID No.121)/(United States Treasury PRF 12/1/2009@102), 12/1/2019
    
2,033,631
 
500,000
  
Clark County, NV, Special Assessment Revenue Bonds (Series 2005), 5.00% (Summerlin-Mesa SID No. 151), 8/1/2025
    
407,835
 
1,275,000
  
Henderson, NV, LO Improvement Bonds, 5.30% (Inspirada Local Improvement District No. T-18)/(Original Issue Yield: 5.33%), 9/1/2035
    
828,750
 
485,000
  
Las Vegas, NV, Local Improvement Special Assessment Bonds (Series 2004), 6.00% (Providence SID No. 607), 6/1/2019
    
432,479
 
965,000
  
North Las Vegas, NV Special Improvement District No. 60, Subordinate LT Obligation Refunding Bonds (Series 2006B), 5.10% (Aliante SID No. 60), 12/1/2022
    
838,855
 
1,000,000
  
Reno, NV, (Series A) Auction Rate Securities (Washoe Medical Center)/(CIFG Assurance NA INS), 7.500%, 6/4/2008
    
1,000,000
     
TOTAL
    
12,416,767
     
New Hampshire--0.2%
      
 
345,000
  
New Hampshire HEFA, Revenue Bonds (Series 2006A), 5.35% (Havenwood-Heritage Heights ), 1/1/2026
    
301,502
 
750,000
  
New Hampshire HEFA, Revenue Bonds (Series 2006A), 5.40% (Havenwood-Heritage Heights ), 1/1/2030
    
641,340
     
TOTAL
    
942,842
     
New Jersey--4.1%
      
 
1,995,000
  
New Jersey EDA, Kapkowski Road Landfill Revenue Bonds, 6.50% (New Jersey Metromall Urban Renewal, Inc.)/(Original Issue Yield: 6.55%), 4/1/2018
    
2,002,382
 
2,000,000
  
New Jersey EDA, Retirement Community Revenue Bonds (Series 2001A), 7.25% (Cedar Crest Village, Inc.)/(United States Treasury PRF 11/15/2011@101)/(Original Issue Yield: 7.625%), 11/15/2031
    
2,297,740
 
1,550,000
  
New Jersey EDA, Revenue Bonds (Series 1997A), 5.875% (Host Marriott Corp.), 12/1/2027
    
1,449,436
 
2,000,000
  
New Jersey EDA, Revenue Bonds, 6.25% (Continental Airlines, Inc.), 9/15/2019
    
1,719,320
 
3,000,000
  
New Jersey EDA, Revenue Bonds, Series 2004, 5.50% (NJ Dedicated Cigarette Excise Tax), 6/15/2016
    
3,036,840
 
1,000,000
  
New Jersey EDA, Revenue Bonds, (Series 2004), 5.75% (NJ Dedicated Cigarette Excise Tax)/(Original Issue Yield: 5.93%), 6/15/2034
    
972,370
 
2,000,000
  
New Jersey EDA, School Facilities Construction Bonds (Series 2008Y), 4.50% (New Jersey State)/(Original Issue Yield: 4.58%), 9/1/2026
    
1,953,600
 
1,000,000
  
New Jersey EDA, Special Facilities Revenue Bonds (Series 2000), 7.20% (Continental Airlines, Inc.)/(Original Issue Yield: 7.25%), 11/15/2030
    
899,930
 
400,000
5
New Jersey Health Care Facilities Financing Authority, Revenue Bonds, 6.50% (Pascack Valley Hospital Association)/(Original Issue Yield: 6.72%), 7/1/2023
    
258,600
 
2,000,000
  
New Jersey Health Care Facilities Financing Authority, Revenue Bonds, 6.625% (Palisades Medical Center)/(Original Issue Yield: 6.67%), 7/1/2031
    
2,072,100
 
6,615,000
  
New Jersey Health Care Facilities Financing Authority, Revenue Bonds, 2.59% (Catholic Health East), 11/15/2033
    
5,159,700
     
TOTAL
    
21,822,018
     
New Mexico--1.2%
      
 
850,000
  
Bernalillo County, NM Multifamily, Refunding Housing Revenue Bonds (Series 2001C), 7.50% (Valencia Retirement)/(GTD by SunAmerica, Inc.), 12/1/2021
    
871,225
 
2,425,000
  
Dona Ana County, NM, MFH Revenue Bonds (Series 2001A), 7.00% (Montana Meadows Apartments), 12/1/2030
    
2,490,912
 
2,000,000
  
Farmington, NM, PCR Refunding Bonds (Series 1997), 6.375% (Public Service Co., NM), 4/1/2022
    
2,002,680
 
1,000,000
  
Mariposa East Public Improvement District, NM, UT GO Bonds, (Series 2006), 6.00%, 9/1/2032
    
881,830
     
TOTAL
    
6,246,647
     
New York--4.9%
      
 
935,000
  
Amherst, NY IDA, Civic Facility Revenue Bonds (Series 2006A), 5.20% (Beechwood Health Care Center, Inc.), 1/1/2040
    
769,739
 
2,500,000
  
Brookhaven, NY IDA, Senior Residential Housing Revenue Bonds, 6.25% (Woodcrest Estates), 12/1/2023
    
2,520,075
 
115,000
  
Dutchess County, NY IDA, Civic Facility Revenue Bonds (Series 2004B), 7.50% (St. Francis Hospital and Health Centers), 3/1/2029
    
122,493
 
930,000
  
Dutchess County, NY IDA, Refunding Revenue Bonds (Series 2004A), 7.50% (St. Francis Hospital and Health Centers), 3/1/2029
    
990,599
 
1,365,000
  
East Rochester, NY Housing Authority, Senior Living Revenue Bonds (Series 2006), 5.50% (Woodland Village, Inc.), 8/1/2033
    
1,199,890
 
355,000
  
Nassau County, NY IDA, Civic Facility Refunding Revenue Bonds (Series 2001B), 5.875% (North Shore-Long Island Jewish Obligated Group)/(Original Issue Yield: 5.92%), 11/1/2011
    
369,789
 
2,000,000
  
Nassau County, NY IDA, Continuing Care Retirement Community Fixed Rate Revenue Bonds (Series 2007A), 6.70% (Amsterdam at Harborside), 1/1/2043
    
2,002,360
 
6,000,000
1
New York City, NY IDA, Liberty Revenue Bonds (Series A), 6.50% (7 World Trade Center LLC), 3/1/2035
    
6,062,700
 
2,000,000
1
New York City, NY IDA, Liberty Revenue Bonds (Series B), 6.75% (7 World Trade Center LLC), 3/1/2015
    
2,058,540
 
1,000,000
  
New York City, NY IDA, Special Facilities Revenue Bonds (Series 2006), 5.125% (Jet Blue Airways Corp.)/(Original Issue Yield: 5.35%), 5/15/2030
    
673,350
 
400,000
  
New York City, NY IDA, Special Facilities Revenue Bonds, 5.50% (Terminal One Group Association), 1/1/2024
    
407,172
 
1,500,000
  
New York City, NY IDA, Special Facility Revenue Bonds (Series 2002), 7.625% (British Airways)/(Original Issue Yield: 7.976%), 12/1/2032
    
1,400,550
 
5,500,000
  
New York City, NY IDA, Special Facility Revenue Bonds (Series 2005), 8.00% (American Airlines, Inc.)/(Original Issue Yield: 8.095%), 8/1/2028
    
5,358,155
 
1,700,000
1
New York Liberty Development Corp., Revenue Bonds (Series 2006A), 6.125% (National Sports Museum), 2/15/2019
    
1,705,389
 
300,000
  
New York State Dormitory Authority, Revenue Bonds (Series 2005), 5.00% (Rochester General Hospital)/(Radian Asset Assurance INS), 12/1/2035
    
286,629
     
TOTAL
    
25,927,430
     
North Carolina--0.9%
      
 
2,500,000
  
Gaston County, NC Industrial Facilities and PCFA, Exempt Facilities Revenue Bonds, 5.75% (National Gypsum Co.), 8/1/2035
    
1,985,900
 
500,000
  
North Carolina Medical Care Commission, Health Care Facilities First Mortgage Revenue Bonds, 6.375% (Arbor Acres Community)/(United States Treasury PRF 3/1/2012@101)/
(Original Issue Yield: 6.55%), 3/1/2032
    
558,185
 
630,000
  
North Carolina Medical Care Commission, Health Care Facilities First Mortgage Revenue Refunding Bonds (Series 2006), 5.10% (Moravian Homes, Inc.), 10/1/2030
    
548,535
 
1,200,000
  
North Carolina Medical Care Commission, Health Care Housing Revenue Bonds (Series 2004A), 5.80% (Arc of North Carolina Projects), 10/1/2034
    
1,179,228
 
500,000
  
North Carolina Medical Care Commission, Health Care Facilities Revenue Bonds (Series 2005A), 5.65% (Pennybyrn at Maryfield)/(Original Issue Yield: 5.85%), 10/1/2025
    
459,350
     
TOTAL
    
4,731,198
     
Ohio--3.6%
      
 
9,655,000
  
Buckeye Tobacco Settlement Financing Authority, OH, Tobacco Settlement Asset-Backed Bonds (Series 2007A), 6.50%, 6/1/2047
    
9,012,460
 
1,000,000
  
Cleveland-Cuyahoga County, OH Port Authority, Senior Housing Revenue Bonds (Series 2006A), 6.25% (St. Clarence-GEAC LLC), 5/1/2038
    
947,040
 
1,500,000
  
Cleveland-Cuyahoga County, OH Port Authority, Special Assessment Tax-Increment Revenue Bonds, 7.35% (University Heights, OH Public Parking Garage), 12/1/2031
    
1,578,075
 
500,000
  
Franklin County, OH Health Care Facilities, Revenue Bonds (Series 2001A), 7.125% (Ohio Presbyterian Retirement Services)/(United States Treasury PRF 7/1/2011@101)/(Original Issue Yield: 7.35%), 7/1/2029
    
566,570
 
5,000,000
  
Lorain County, OH, Hospital Revenue Refunding & Improvement Bonds, 5.625% (Catholic Healthcare Partners), 10/1/2013
    
5,347,500
 
1,500,000
  
Port Authority for Columbiana County, OH, Solid Waste Facility Revenue Bonds (Series 2004A), 7.25% (Apex Environmental LLC)/(Original Issue Yield: 7.30%), 8/1/2034
    
1,474,425
 
375,000
  
Toledo-Lucas County, OH Port Authority, Revenue Bonds (Series 2004C), 6.375% (Northwest Ohio Bond Fund), 11/15/2032
    
375,379
     
TOTAL
    
19,301,449
     
Oklahoma--1.1%
      
 
3,665,000
  
Jackson County, OK Hospital Authority, Hospital Revenue Refunding Bonds, 7.30% (Jackson County Memorial Hospital, OK)/(Original Issue Yield: 7.40%), 8/1/2015
    
3,682,006
 
1,000,000
  
Oklahoma County, OK Finance Authority, Retirement Facility Revenue Bonds (Series 2005), 6.00% (Concordia Life Care Community)/(Original Issue Yield: 6.15%), 11/15/2038
    
901,190
 
1,000,000
  
Oklahoma County, OK Finance Authority, Retirement Facility Revenue Bonds (Series 2005), 6.125% (Concordia Life Care Community), 11/15/2025
    
947,690
     
TOTAL
    
5,530,886
     
Oregon--0.6%
      
 
1,000,000
  
Clackamas County, OR Hospital Facilities Authority, Refunding Gross Revenue Bonds (Series 2005), 5.125% (Willamette Falls Hospital), 4/1/2026
    
936,060
 
1,000,000
1
Cow Creek Band of Umpqua Tribe of Indians, Tax-Exempt Tax Revenue Bonds (Series 2006C), 5.625%, 10/1/2026
    
894,160
 
1,000,000
  
Yamhill County, OR Hospital Authority, Revenue Bonds, 7.00% (Friendsview Retirement Community)/(United States Treasury PRF 12/1/2013@101)/(Original Issue Yield: 7.125%), 12/1/2034
    
1,181,690
     
TOTAL
    
3,011,910
     
Pennsylvania--6.2%
      
 
1,330,000
  
Allegheny County, PA HDA, Health Care Facilities Revenue Bonds (Series 1998), 5.875% (Villa St. Joseph of Baden, Inc.)/(Original Issue Yield: 6.02%), 8/15/2018
    
1,246,848
 
3,000,000
  
Allegheny County, PA HDA, Health System Revenue Bonds (Series 2007A), 5.375% (West Penn Allegheny Health System), 11/15/2040
    
2,542,230
 
2,000,000
1
Allegheny County, PA IDA, Cargo Facilities Lease Revenue Bonds (Series 1999), 6.625% (AFCO Cargo PIT LLC Project)/(Original Issue Yield: 6.75%), 9/1/2024
    
1,904,340
 
1,120,000
  
Allegheny County, PA IDA, Charter School Revenue Bonds (Series 2004A), 7.50% (Propel Schools)/(Original Issue Yield: 7.75%), 12/15/2029
    
1,148,941
 
865,000
  
Allegheny County, PA IDA, Environmental Improvement Refunding Revenue Bonds (Series 2005), 5.50% (United States Steel Corp.), 11/1/2016
    
879,056
 
600,000
  
Bucks County, PA IDA, Retirement Community Revenue Bonds (Series 2005A), 6.25% (Ann's Choice, Inc.), 1/1/2035
    
589,284
 
2,000,000
  
Carbon County, PA IDA, Refunding Revenue Bonds, 6.70% (Panther Creek Partners Project), 5/1/2012
    
2,059,260
 
1,500,000
  
Chartiers Valley, PA Industrial & Commercial Development Authority, First Mortgage Revenue Refunding Bonds (Series 1999), 6.375% (Asbury Health Center)/(Original Issue Yield: 6.52%), 12/1/2024
    
1,506,045
 
1,500,000
  
Chester County, PA IDA, Revenue Bonds (Series 2007A), 6.375% (Avon Grove Charter School )/(Original Issue Yield: 6.45%), 12/15/2037
    
1,447,830
 
1,445,000
  
Cumberland County, PA Municipal Authority, Retirement Community Revenue Bonds (Series 2002A), 7.25% (Wesley Affiliated Services, Inc. Obligated Group)/(United States Treasury PRF 1/1/2013@101)/(Original Issue Yield: 7.50%), 1/1/2035
    
1,704,551
 
555,000
  
Cumberland County, PA Municipal Authority, Retirement Community Revenue Bonds (Series 2002A), 7.25% (Wesley Affiliated Services, Inc. Obligated Group)/(United States Treasury PRF 1/1/2013@101)/(Original Issue Yield: 7.50%), 1/1/2035
    
653,385
 
2,550,000
1,2
Geisinger Authority, PA Health System, DRIVERs (Series 1834), 3.6118% (Geisinger Health System), 2/1/2015
    
1,387,965
 
1,500,000
  
Monroe County, PA Hospital Authority, Hospital Revenue Bonds (Series 2007), 5.125% (Pocono Medical Center)/(Original Issue Yield: 5.20%), 1/1/2037
    
1,355,550
 
1,000,000
  
Montgomery County, PA IDA, Fixed Rate Mortgage Revenue Bonds (Series 2005), 6.25% (Whitemarsh Continuing Care Retirement Community)/(Original Issue Yield: 6.375%), 2/1/2035
    
922,250
 
500,000
  
Pennsylvania EDFA, Exempt Facilities Revenue Bonds (Series 1997B), 6.125% (National Gypsum Co.), 11/1/2027
    
430,235
 
2,000,000
  
Pennsylvania EDFA, Exempt Facilities Revenue Bonds, 6.25% (National Gypsum Co.), 11/1/2027
    
1,746,300
 
1,250,000
  
Pennsylvania EDFA, Resource Recovery Revenue Bonds (Series A), 6.40% (Northampton Generating), 1/1/2009
    
1,244,788
 
900,000
  
Philadelphia Authority for Industrial Development, Senior Living Revenue Bonds (Series 2005A), 5.625% (PresbyHomes Germantown/Morrisville), 7/1/2035
    
843,066
 
1,000,000
  
Philadelphia, PA Airport System, Revenue Bonds (Series 2005A), 5.00% (MBIA Insurance Corp. INS), 6/15/2024
    
980,530
 
4,000,000
  
Sayre, PA, Health Care Facilities Authority, Revenue Bonds, 2.891% (Guthrie Healthcare System, PA), 12/1/2031
    
3,080,000
 
1,500,000
  
Scranton, PA, UT GO Bonds (Series 2001C), 7.10% (United States Treasury PRF 9/1/2011@100)/(Original Issue Yield: 7.35%), 9/1/2031
    
1,692,525
 
740,000
  
Washington County, PA Redevelopment Authority, Redevelopment Bonds (Series 2006A), 5.45% (Victory Centre Project-Tanger Outlet Development ), 7/1/2035
    
639,871
 
2,000,000
  
Westmoreland County, PA IDA, Health Care Facility Revenue Bonds (Series 2000B), 8.00% (Redstone Presbyterian Seniorcare Obligated Group)/(United States Treasury PRF 11/15/2010@101)/(Original Issue Yield: 8.25%), 11/15/2023
    
2,261,480
 
500,000
  
Westmoreland County, PA IDA, Retirement Community Revenue Bonds (Series 2005A), 5.75% (Redstone Presbyterian Seniorcare Obligated Group), 1/1/2026
    
458,800
     
TOTAL
    
32,725,130
     
Puerto Rico--0.1%
      
 
9,000,000
1
Children's Trust, PR, Tobacco Settlement Asset-Backed Revenue Bonds (Series 2005A) (Original Issue Yield: 6.50%), 5/15/2050
    
411,480
     
Rhode Island--0.7%
      
 
3,500,000
1,2
Rhode Island Housing & Mortgage Finance Corp., Austin Trust Variable Inverse Certificates (Series 2008-1110), 10.126%, 4/1/2027
    
2,444,750
 
1,000,000
  
Rhode Island State Health and Educational Building Corp., Hospital Financing Revenue Bonds (Series 2002), 6.50% (Lifespan Obligated Group)/(United States Treasury PRF 8/15/2012@100)/(Original Issue Yield: 6.70%), 8/15/2032
    
1,131,640
     
TOTAL
    
3,576,390
     
South Carolina--2.9%
      
 
6,000,000
4
Connector 2000 Association, Inc., SC, Capital Appreciation Senior Revenue Bonds (Series 1998B) (Original Issue Yield: 5.80%), 7.70%, 1/1/2025
    
1,470,540
 
7,750,000
4
Connector 2000 Association, Inc., SC, Toll Road Capital Appreciation Revenue Bonds (Series 1998A) (Original Issue Yield: 5.85%), 5.850%, 1/1/2034
    
1,001,300
 
825,000
  
Lancaster County, SC, Assessment Revenue Bonds (Series 2006), 5.45% (Sun City Carolina Lakes Improvement District), 12/1/2037
    
660,297
 
1,000,000
  
Myrtle Beach, SC, Tax Increment Bonds (Series 2006A), 5.25% (Myrtle Beach Air Force Base Redevelopment Project Area)/(Original Issue Yield: 5.27%), 10/1/2026
    
859,450
 
750,000
  
Myrtle Beach, SC, Tax Increment Bonds (Series 2006A), 5.30% (Myrtle Beach Air Force Base Redevelopment Project Area)/(Original Issue Yield: 5.325%), 10/1/2035
    
613,463
 
800,000
  
South Carolina Jobs-EDA, First Mortgage Health Facilities Refunding Revenue Bonds (Series 2006), 5.30% (Wesley Commons), 10/1/2036
    
657,720
 
1,500,000
  
South Carolina Jobs-EDA, First Mortgage Health Facilities Revenue Refunding Bonds (Series 1998), 5.70% (The Lutheran Homes of South Carolina, Inc.)/(Original Issue Yield: 5.80%), 5/1/2026
    
1,327,350
 
8,000,000
  
South Carolina Jobs-EDA, Hospital Revenue Bonds, 2.37% (Palmetto Health Alliance), 8/1/2039
    
7,520,000
 
1,000,000
  
Tobacco Settlement Revenue Management Authority, SC, Tobacco Settlement Asset-Backed Bonds (Series 2001B), 6.375% (Original Issue Yield: 6.532%), 5/15/2028
    
1,006,370
     
TOTAL
    
15,116,490
     
South Dakota--0.8%
      
 
2,000,000
  
Educational Enhancement Funding Corp., SD, Tobacco Revenue Bonds (Series 2002B), 6.50%, 6/1/2032
    
2,000,840
 
2,000,000
  
Minnehaha County, SD Health Facilities, Revenue Bonds (Series 2002A), 7.00% (Bethany Lutheran Home)/(United States Treasury PRF 12/1/2012@100)/(Original Issue Yield: 7.198%), 12/1/2035
    
2,300,340
     
TOTAL
    
4,301,180
     
Tennessee--1.5%
      
 
3,000,000
  
Elizabethton, TN Health & Educational Facilities Board, First Mortgage Hospital Revenue Refunding & Improvement Bonds (Series 2000B), 8.00% (Mountain States Health Alliance)/(United States Treasury PRF 7/1/2012@103), 7/1/2033
    
3,627,690
 
2,000,000
  
Johnson City, TN Health & Education Facilities Board, Hospital First Mortgage Revenue Bonds (Series 2006A), 5.50% (Mountain States Health Alliance), 7/1/2036
    
1,893,400
 
1,000,000
  
Johnson City, TN Health & Education Facilities Board, Retirement Facility Revenue Bonds (Series 2004A), 6.25% (Appalachian Christian Village)/(Original Issue Yield: 6.43%), 2/15/2032
    
951,340
 
365,000
  
Knox County, TN Health Education & Housing Facilities Board, Hospital Facilities Revenue Bonds, 6.50% (Baptist Health System of East Tennessee)/(Original Issue Yield: 6.625%), 4/15/2031
    
378,344
 
375,000
  
Sullivan County, TN Health Educational & Housing Facilities Board, Revenue Bonds, 6.25% (Wellmont Health System)/(United States Treasury PRF 9/1/2012@101)/(Original Issue Yield: 6.45%), 9/1/2022
    
423,443
 
625,000
  
Sullivan County, TN Health Educational & Housing Facilities Board, Revenue Bonds, 6.25% (Wellmont Health System)/(United States Treasury PRF 9/1/2012@101)/(Original Issue Yield: 6.45%), 9/1/2022
    
705,738
     
TOTAL
    
7,979,955
     
Texas--7.4%
      
 
2,000,000
  
ABIA Development Corp., TX, Airport Facilities Revenue Bonds (Series 1999), 7.25% (Aero Austin LP)/(Original Issue Yield: 7.50%), 1/1/2025
    
2,007,600
 
800,000
  
Abilene, TX HFDC Retirement Facilities Revenue Bonds (Series 2003A), 7.00% (Sears Methodist Retirement )/(Original Issue Yield: 7.25%), 11/15/2033
    
823,336
 
1,000,000
  
Austin, TX Convention Center Enterprises, Inc., Convention Center Hotel Second Tier Revenue Refunding Bonds (Series 2006B), 5.75%, 1/1/2034
    
881,750
 
1,000,000
  
Austin, TX Convention Center Enterprises, Inc., First Tier Hotel Revenue Bonds (Series 2001A), 6.70% (United States Treasury PRF 1/1/2011@100)/(Original Issue Yield: 6.75%), 1/1/2032
    
1,095,820
 
1,000,000
  
Brazos River Authority, TX, PCR Refunding Bonds (Series 1994A), 5.40% (Texas Competitive Electric Holdings Co. LLC), 5/1/2029
    
756,820
 
1,000,000
  
Brazos River Authority, TX, PCR Refunding Bonds (Series 2003A), 6.75% TOBs (Texas Competitive Electric Holdings Co. LLC), Mandatory Tender 4/1/2013
    
963,260
 
715,000
  
Brazos River Authority, TX, PCR Refunding Bonds (Series 2003C), 6.75% (Texas Competitive Electric Holdings Co. LLC)/(Original Issue Yield: 6.77%), 10/1/2038
    
626,612
 
2,380,000
  
Brazos River Authority, TX, Refunding PCRBs (Series 2001C), 5.75% TOBs (Texas Competitive Electric Holdings Co. LLC), Mandatory Tender 11/1/2011
    
2,280,040
 
1,500,000
  
Dallas, TX Performing Arts Cultural Facilities Corp., (Series 2006A) Auction Rate Securities (Dallas Center for the Performing Arts Foundation, Inc.)/(MBIA Insurance Corp. INS), 5.000%, 6/5/2008
    
1,500,000
 
4,000,000
  
Decatur, TX Hospital Authority, Hospital Revenue Bonds (Series 2004A), 7.125% (Wise Regional Health System), 9/1/2034
    
4,105,600
 
1,500,000
  
El Paso, TX HFDC, Senior Care Facilities Revenue Bonds, 7.75% (Bienvivir Senior Health Services)/(United States Treasury PRF 8/15/2011@102), 8/15/2031
    
1,736,070
 
765,000
  
HFDC of Central Texas, Inc., Retirement Facility Revenue Bonds (Series 2006A), 5.50% (Village at Gleannloch Farms, Inc.), 2/15/2027
    
658,351
 
1,265,000
  
HFDC of Central Texas, Inc., Retirement Facility Revenue Bonds (Series 2006A), 5.50% (Village at Gleannloch Farms, Inc.), 2/15/2037
    
1,047,509
 
1,000,000
  
HFDC of Central Texas, Inc., Retirement Facility Revenue Bonds (Series 2006A), 5.75% (Legacy at Willow Bend), 11/1/2036
    
858,060
 
1,000,000
  
Houston, TX Airport System, Special Facilities Revenue Bonds (Series 2001), 7.00% (Continental Airlines, Inc.), 7/1/2029
    
876,830
 
1,000,000
  
Houston, TX HFDC, Retirement Facilities Revenue Bonds (Series 2004A), 7.125% (Buckingham Senior Living Community)/(United States Treasury PRF 2/15/2014@101)/
(Original Issue Yield: 7.20%), 2/15/2034
    
1,206,630
 
2,000,000
  
Kerrville, TX HFDC, Hospital Revenue Bonds, 5.375% (Sid Peterson Memorial Hospital), 8/15/2035
    
1,830,680
 
1,125,000
  
Mesquite, TX Health Facilities Development Corp., Retirement Facility Revenue Bonds (Series 2005), 5.625% (Christian Care Centers, Inc.), 2/15/2035
    
1,027,339
 
1,000,000
  
Mission, TX Economic Development Corp., Solid Waste Disposal Revenue Bonds (Series 2007A), 5.20% (Allied Waste North America, Inc.)/(Original Issue Yield: 5.30%), 4/1/2018
    
896,440
 
250,000
  
Port of Corpus Christi, TX IDC, Revenue Refunding Bonds (Series C), 5.40% (Valero Energy Corp.), 4/1/2018
    
249,753
 
2,000,000
  
Tarrant County, TX Cultural Education Facilities Finance Corp., Hospital Revenue Bonds (Series 2006), 6.375% (Doctors Hospital )/(Original Issue Yield: 6.60%), 11/1/2036
    
1,656,460
 
900,000
  
Tarrant County, TX Cultural Education Facilities Finance Corp., Revenue Bonds, (Series 2006A), 6.00% (Northwest Senior Housing Corp. Edgemere Project), 11/15/2036
    
872,541
 
1,000,000
  
Tarrant County, TX HFDC, Revenue Bonds (Series 1998C), 5.75% (Bethesda Living Center)/(Original Issue Yield: 5.89%), 8/15/2018
    
972,110
 
1,000,000
  
Tarrant County, TX HFDC, Revenue Bonds (Series 1998C), 5.75% (Bethesda Living Center)/(Original Issue Yield: 5.97%), 8/15/2028
    
920,920
 
7,500,000
  
Texas Municipal Gas Acquisition & Supply Corp. I, Senior Lien Gas Supply Revenue Bonds (Series 2006B), 2.576%, 12/15/2026
    
5,625,000
 
2,000,000
  
Texas State Affordable Housing Corp., MFH Revenue Bonds (Junior Series 2002B), 8.00% (American Housing Foundation)/(Original Issue Yield: 8.365%), 3/1/2032
    
400,440
 
1,000,000
  
Tom Green County, TX HFDC, Hospital Revenue Bonds, 6.75% (Shannon Health System)/
(Original Issue Yield: 6.85%), 5/15/2021
    
1,044,690
 
535,000
  
Travis County, TX HFDC, Retirement Facility Revenue Bonds, 5.65% (Querencia at Barton Creek)/(Original Issue Yield: 5.80%), 11/15/2035
    
470,923
 
2,000,000
  
Tyler, TX HFDC, Revenue Refunding & Improvement Bonds (Series 2007A), 5.375% (East Texas Medical Center Regional Healthcare System)/(Original Issue Yield: 5.45%), 11/1/2037
    
1,775,460
     
TOTAL
    
39,167,044
     
Utah--0.8%
      
 
1,000,000
1
Provo, UT, Charter School Revenue Bonds (Series 2007), 5.50% (Freedom Academy Foundation)/(Original Issue Yield: 5.55%), 6/15/2037
    
845,050
 
800,000
  
Spanish Fork City, UT, Charter School Revenue Bonds (Series 2006), 5.55% (American Leadership Academy), 11/15/2026
    
716,736
 
1,750,000
  
Spanish Fork City, UT, Charter School Revenue Bonds (Series 2006), 5.70% (American Leadership Academy), 11/15/2036
    
1,529,570
 
1,315,000
1
Utah State Charter School Finance Authority, Charter School Revenue Bonds (Series 2007A), 6.00% (Channing Hall), 7/15/2037
    
1,199,201
     
TOTAL
    
4,290,557
     
Virginia--2.3%
      
 
675,000
  
Broad Street Community Development Authority, VA, Revenue Bonds, 7.10% (Original Issue Yield: 7.15%), 6/1/2016
    
733,759
 
1,000,000
  
Broad Street Community Development Authority, VA, Revenue Bonds, 7.50% (Original Issue Yield: 7.625%), 6/1/2033
    
1,050,960
 
1,470,000
  
Henrico County, VA EDA, Residential Care Facility Revenue Refunding Bonds, 6.70% (Virginia United Methodist Homes, Inc.)/(Original Issue Yield: 6.80%), 6/1/2027
    
1,499,238
 
530,000
  
Henrico County, VA EDA, Residential Care Facility Revenue Refunding Bonds, 6.70% (Virginia United Methodist Homes, Inc.)/(United States Treasury PRF 6/1/2012@100)/
(Original Issue Yield: 6.80%), 6/1/2027
    
601,884
 
1,500,000
  
Peninsula Port Authority, VA, Residential Care Facility Revenue Bonds (Series 2003A), 7.375% (Virginia Baptist Homes Obligated Group)/(United States Treasury PRF 12/1/2013@100)/(Original Issue Yield: 7.625%), 12/1/2032
    
1,817,310
 
1,000,000
  
Peninsula Town Center Community Development Authority, VA, Special Obligation Bonds (Series 2007), 6.45%, 9/1/2037
    
922,500
 
7,500,000
4
Pocahontas Parkway Association, VA, Toll Road Capital Appreciation Revenue Bonds (Series B) (United States Treasury PRF 8/15/2008@61.238)/(Original Issue Yield: 5.75%), 5.719%, 8/15/2017
    
4,573,800
 
1,250,000
  
Tobacco Settlement Financing Corp., VA, Tobacco Settlement Asset-Backed Bonds (Series 2007B-1), 5.00% (Original Issue Yield: 5.12%), 6/1/2047
    
954,350
     
TOTAL
    
12,153,801
     
Washington--0.6%
      
 
250,000
  
Skagit County, WA Public Hospital District No. 1, Revenue Bonds (Series 2005), 5.50% (Skagit Valley Hospital), 12/1/2030
    
235,850
 
1,500,000
1
Washington Health Care Facilities Authority, Revenue Bonds (Series 2007A), 6.25% (Virginia Mason Medical Center)/(Original Issue Yield: 6.375%), 8/15/2042
    
1,485,600
 
1,625,000
  
Washington State Housing Finance Commission, Nonprofit Revenue Bonds (Series 2007A), 5.625% (Skyline at First Hill), 1/1/2038
    
1,387,848
     
TOTAL
    
3,109,298
     
West Virginia--0.5%
      
 
640,000
  
Ohio County, WV County Commission, Special District Excise Tax Revenue Refunding & Improvement Bonds (Series 2006A), 5.625% (Fort Henry Economic Opportunity Development District), 3/1/2036
    
613,101
 
1,000,000
  
Ohio County, WV County Commission, Tax Increment Revenue Bonds (Series 2005A), 5.625% (Fort Henry Centre Tax Increment Financing District No. 1), 6/1/2034
    
973,380
 
1,000,000
  
Ohio County, WV County Commission, Tax Increment Revenue Bonds (Series 2007A), 5.85% (Fort Henry Centre Tax Increment Financing District No. 1), 6/1/2034
    
1,002,770
     
TOTAL
    
2,589,251
     
Wisconsin--3.1%
      
 
1,185,000
  
Badger, WI Tobacco Asset Securitization Corp., Asset-Backed Revenue Bonds, 6.125% (Original Issue Yield: 6.35%), 6/1/2027
    
1,176,978
 
750,000
  
Milwaukee, WI Redevelopment Authority, Redevelopment Education Revenue Bonds (Series 2005A), 5.75% (Milwaukee Science Education Consortium, Inc.)/(Original Issue Yield: 5.93%), 8/1/2035
    
716,258
 
2,500,000
1,2
Wisconsin Housing & EDA, Residual Interest Trust Receipts (Series 2007-K15), 11.423%, 5/17/2014
    
2,117,300
 
1,250,000
  
Wisconsin State HEFA, Revenue Bonds (Series 1998), 5.70% (United Lutheran Program For The Aging, Inc.)/(Original Issue Yield: 5.778%), 3/1/2028
    
1,125,400
 
1,000,000
  
Wisconsin State HEFA, Revenue Bonds (Series 2002A), 7.375% (Divine Savior Health Care)/(United States Treasury PRF 5/1/2012@100), 5/1/2026
    
1,145,580
 
880,000
  
Wisconsin State HEFA, Revenue Bonds (Series 2002A), 7.50% (Divine Savior Health Care)/(United States Treasury PRF 5/1/2012@100), 5/1/2032
    
1,012,123
 
1,400,000
  
Wisconsin State HEFA, Revenue Bonds (Series 2004), 6.125% (Eastcastle Place, Inc.)/
(Original Issue Yield: 6.25%), 12/1/2034
    
1,303,246
 
750,000
  
Wisconsin State HEFA, Revenue Bonds (Series 2004A), 6.25% (Southwest Health Center)/
(Original Issue Yield: 6.32%), 4/1/2034
    
710,475
 
1,000,000
  
Wisconsin State HEFA, Revenue Bonds (Series 2004A), 6.75% (Beaver Dam Community Hospitals, Inc.)/(Original Issue Yield: 6.95%), 8/15/2034
    
1,021,160
 
2,000,000
  
Wisconsin State HEFA, Revenue Bonds (Series 2006A), 5.25% (Wheaton Franciscan Health Care), 8/15/2031
    
1,803,960
 
1,250,000
  
Wisconsin State HEFA, Revenue Bonds, 5.80% (Beaver Dam Community Hospitals, Inc.), 8/15/2028
    
1,139,138
 
500,000
  
Wisconsin State HEFA, Revenue Bonds, 6.625% (Tomah Memorial Hospital, Inc.)/(Original Issue Yield: 6.875%), 7/1/2028
    
498,310
 
1,630,000
  
Wisconsin State HEFA, Revenue Bonds, 6.00% (Agnesian Healthcare, Inc.)/(Original Issue Yield: 6.15%), 7/1/2030
    
1,659,226
 
1,000,000
  
Wisconsin State HEFA, Revenue Bonds,(Series 2006A), 5.375% (Marshfield Clinic, WI), 2/15/2034
    
960,240
     
TOTAL
    
16,389,394
     
Wyoming--0.6%
      
 
2,000,000
  
Sweetwater County, WY, Solid Waste Disposal Refunding Revenue Bonds (Series 2005), 5.60% (FMC Corp.), 12/1/2035
    
1,827,840
 
1,500,000
  
Teton County, WY Hospital District, Hospital Revenue Bonds, 6.75% (St. John's Medical Center)/(Original Issue Yield: 7.00%), 12/1/2027
    
1,513,890
     
TOTAL
    
3,341,730
     
TOTAL MUNICIPAL BONDS (IDENTIFIED COST $525,184,082)
    
497,574,855
     
SHORT-TERM MUNICIPALS--4.3%7
      
     
Alaska--0.1%
      
 
600,000
  
Valdez, AK Marine Terminal, (Series 2003A) Daily VRDNs (BP Pipelines (Alaska) Inc.)/(GTD by BP PLC), 1.300%, 6/2/2008
    
600,000
     
California--1.3%
      
 
4,800,000
  
California Infrastructure & Economic Development Bank, (Series 2005) Daily VRDNs (Asian Art Museum Foundation of San Francisco)/(MBIA Insurance Corp. INS)/(JPMorgan Chase Bank, N.A. LIQ), 1.650%, 6/2/2008
    
4,800,000
 
2,000,000
  
M-S-R Public Power Agency, CA, (Series 1998-F: San Juan Project) Daily VRDNs (MBIA Insurance Corp. INS)/(JPMorgan Chase Bank, N.A. LIQ), 1.700%, 6/2/2008
    
2,000,000
     
TOTAL
    
6,800,000
     
Georgia--0.6%
      
 
2,900,000
  
Burke County, GA Development Authority, (First Series 1997) Daily VRDNs (Georgia Power Co.), 1.250%, 6/2/2008
    
2,900,000
     
Massachusetts--0.9%
      
 
4,700,000
  
Massachusetts HEFA, Revenue Bonds (Series 2006L-2) Daily VRDNs (Children's Hospital Medical Center)/(AMBAC INS)/(Bank of America N.A. LIQ), 2.600%, 6/2/2008
    
4,700,000
     
Pennsylvania--0.1%
      
 
700,000
  
Philadelphia, PA Hospitals & Higher Education Facilities Authority, (Series 2002-B) Daily VRDNs (Children's Hospital of Philadelphia)/(GTD by JPMorgan Chase Bank, N.A. and WestLB AG LIQs), 1.380%, 6/2/2008
    
700,000
     
Tennessee--1.3%
      
 
345,000
  
Sevier County, TN Public Building Authority, (Series IV-C-4) Daily VRDNs (Cleveland, TN)/
(FSA INS)/(JPMorgan Chase Bank, N.A. LIQ), 1.480%, 6/2/2008
    
345,000
 
1,000,000
  
Sevier County, TN Public Building Authority, (Series IV-E-1) Daily VRDNs (Pigeon Forge, TN)/(AMBAC INS)/(JPMorgan Chase Bank, N.A. LIQ), 3.000%, 6/2/2008
    
1,000,000
 
5,700,000
  
Sevier County, TN Public Building Authority, (Series IV-G-2) Daily VRDNs (Johnson City, TN)/(AMBAC INS)/(JPMorgan Chase Bank, N.A. LIQ), 3.000%, 6/2/2008
    
5,700,000
     
TOTAL
    
7,045,000
     
TOTAL SHORT-TERM MUNICIPALS (AT AMORTIZED COST)
    
22,745,000
     
OTHER--1.4%
      
 
1,500,000
1,2
Charter Mac Equity Issuer Trust, Pfd., 7.60%, 11/30/2010
    
1,628,940
 
2,000,000
1,2
Muni Mae TE Bond Subsidiary LLC, Pfd., 7.75%, 6/30/2050
    
2,153,880
 
4,000,000
  
Non-Profit Preferred Funding Trust I, Partnership, 9/15/2037
    
3,821,600
     
TOTAL OTHER (IDENTIFIED COST $7,489,000)
    
7,604,420
     
TOTAL INVESTMENTS –99.8%
(IDENTIFIED COST $555,418,082)8
    
527,924,275
     
OTHER ASSETS AND LIABILITIES  -- NET – 0.2%9
    
966,936
     
TOTAL NET ASSETS –100%
  
$
528,891,211

 
At May 31, 2008, the Fund had the following open swap/rate lock contract:
 
Counterparty
Pay
Receive
Expiration Date
Notional
Amount
Value
 
Goldman Sachs & Co.
4.71%
10 Year MMD Rate Lock
6/5/2008
$7,500,000
$(7,853,897)
 
Value of Swap/Rate Lock Contract is included in “Other Assets and Liabilities-Net”.
  
 
Securities that are subject to the federal alternative minimum tax (AMT) represent 16.6% of the Fund’s portfolio as calculated based upon total market value.
  
1
Denotes a restricted security that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) is subject to a contractual restriction on public sales. At May 31, 2008, these restricted securities amounted to $44,170,296, which represented 8.4% of total net assets.
  
2
Denotes a restricted security that may be resold without restriction to "qualified institutional buyers" as defined in Rule 144A under the Securities Act of 1933 and that the Fund has determined to be liquid under criteria established by the Fund's Board of Trustees. At May 31, 2008, these liquid restricted securities amounted to $12,710,655, which represented 2.4% of total net assets.
  
3
Non-income producing security.
  
4
Zero coupon bond, reflects effective rate at time of purchase.
  
5
The obligor filed for bankruptcy. Future interest payments may not be fulfilled.
  
6
Current rate and next reset date shown for Variable Rate Demand Notes.
  
7
At May 31, 2008, the cost of investments for federal tax purposes was 555,418,082. The net unrealized depreciation of investments for federal tax purposes excluding any unrealized depreciation resulting from swap/rate lock contracts was 27,493,807. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $12,934,688 and net unrealized depreciation from investments for those securities having an excess of cost over value of 40,428,495.
  
8
Assets, other than investments in securities, less liabilities.
  

Additional information on restricted securities, excluding securities purchased under Rule 144A that have been deemed liquid by the Trustees,
held at May 31, 2008, is as follows:

Security
  
Acquisition Date
  
Acquisition Cost
Allegheny County, PA IDA, Cargo Facilities Lease Revenue Bonds (Series 1999), 6.625% (AFCO Cargo PIT LLC Project)/(Original Issue Yield: 6.75%), 9/1/2024
  
9/23/1999
  
$1,969,900
Arizona Health Facilities Authority, RITES (PA-1454), 2.39% (Phoenix Children's Hospital), 2/1/2042
  
2/14/2007-2/1/2008
  
$5,944,800
California PCFA, Solid Waste Disposal Revenue Bonds (Series 2002B), 5.00% (Waste Management, Inc.), 7/1/2027
  
6/24/2005
  
$1,000,000
California PCFA, Solid Waste Disposal Revenue Bonds (Series 2005A-2), 5.40% (Waste Management, Inc.), 4/1/2025
  
3/30/2005
  
$1,000,000
California Statewide Communities Development Authority, MFH Revenue Bonds (Series 1999X), 6.65% (Magnolia City Lights Project), 7/1/2039
  
6/7/1999
  
$1,255,000
California Statewide Communities Development Authority, Revenue Bonds, 6.625% (Tehiyah Day School), 11/1/2031
  
7/13/2001
  
$970,000
Capital Trust Agency, FL, Revenue Bonds (Series 2003A), 8.95% (Seminole Tribe of Florida Convention and Resort Hotel Facilities)/(U.S. Treasury PRF 10/1/2012@102)/ (Original Issue Yield: 8.947%), 10/1/2033
  
5/9/2003
  
$1,000,000
Children’s Trust, PR, Tobacco Settlement Asset-Backed Revenue Bonds (Series 2005A) (Original Issue Yield: 6.50%), 5/15/2050
  
7/15/2005
  
$541,890
Cow Creek Band of Umpqua Tribe of Indians, Tax-Exempt Tax Revenue Bonds (Series 2006 C), 5.625%, 10/1/2026
  
6/9/2006
  
$1,000,000
Kansas City, MO IDA, MFH Revenue Bonds, 6.90% (Woodbridge Apartments Project), 8/1/2030
  
7/27/1999
  
$2,445,000
New York City, NY, IDA, Liberty Revenue Bonds (Series A), 6.50% (7 World Trade Center LLC), 3/1/2035
  
3/15/2005
  
$6,000,000
New York City, NY, IDA, Liberty Revenue Bonds (Series B), 6.75% (7 World Trade Center LLC), 3/1/2015
  
3/15/2005
  
$2,000,000
New York Liberty Development Corp., Revenue Bonds (Series 2006A), 6.125% (National Sports Museum), 2/15/2019
  
8/7/2006
  
$1,700,000
Palm Beach County, FL, Tax-Exempt Revenue Bonds (Series 2005A), 6.75% (G-Star School of the Arts for Motion Pictures and Broadcasting Charter School), 5/15/2035
  
12/5/2005
  
$2,000,000
Provo, UT, Charter School Revenue Bonds (Series 2007), 5.50% (Freedom Academy Foundation)/(Original Issue Yield: 5.55%), 6/15/2037
  
3/29/2007
  
$1,000,000
Utah State Charter School Finance Authority, Charter School Revenue Bonds (Series 2007A), 6.00% (Channing Hall), 7/15/2037
  
10/26/2007-11/26/2007
  
$1,316,538
Washington Health Care Facilities Authority, Revenue Bonds (Series 2007A), 6.25% (Virginia Mason Medical Center)/(Original Issue Yield: 6.375%), 8/15/2042
  
11/30/2007
  
$1,473,735
Watson Road Community Facilities District, AZ, Special Assessment Revenue Bonds (Series 2005), 6.00%, 7/1/2030
  
12/21/2005
  
$1,000,000

 
Note: The categories of investments are shown as a percentage of total net assets at May 31, 2008.
 
Investment Valuation
 
In calculating its net asset value (NAV), the Fund generally values investments as follows:
 
·  
Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board of Trustees (the “Trustees”).
 
·  
Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).
 
·  
Shares of other mutual funds are valued based upon their reported NAVs.
 
·  
Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
 
·  
Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.
 
If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund’s NAV.
 
 
Fair Valuation and Significant Events Procedures
 
The Trustees have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV. Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers, and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.
 
The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment’s value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:
 
·  
With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets;
 
·  
Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
 
·  
Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer’s operations or regulatory changes or market developments affecting the issuer’s industry.
 
The Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Trustees.
 
 
The following acronyms are used throughout this portfolio:
 
AMBAC
--American Municipal Bond Assurance Corporation
COL
--Collateralized
DRIVERs
--Derivative Inverse Tax-Exempt Receipts
EDA
--Economic Development Authority
EDFA
--Economic Development Financing Authority
EDRBs
--Economic Development Revenue Bonds
FGIC
--Financial Guaranty Insurance Company
FSA
--Financial Security Assurance
GNMA
--Government National Mortgage Association
GO
--General Obligation
GTD
--Guaranteed
HDA
--Hospital Development Authority
HEFA
--Health and Education Facilities Authority
HFA
--Housing Finance Authority
HFDC
--Health Facility Development Corporation
IDA
--Industrial Development Authority
IDB
--Industrial Development Bond
IDC
--Industrial Development Corporation
IDFA
--Industrial Development Finance Authority
IDRB(s)
--Industrial Development Revenue Bond(s)
INS
--Insured
LIQ(s)
--Liquidity Agreement(s)
LO
--Limited Obligation
LT
--Limited Tax
MFH
--Multi-Family Housing
PCR
--Pollution Control Revenue
PCRBs
--Pollution Control Revenue Bonds
PCFA
--Pollution Control Finance Authority
PRF
--Prerefunded
RITES
--Residual Interest Tax-Exempt Securities
SFM
--Single Family Mortgage
TOBs
--Tender Option Bonds
UT
--Unlimited Tax
VRDNs
--Variable Rate Demand Notes

 
 
 
 


Federated Michigan Intermediate Municipal Trust
 
Portfolio of Investments
 
May 31, 2008 (unaudited)
 
 
Principal
Amount
        
Value
     
MUNICIPAL BONDS -- 95.4%
      
     
Michigan--95.4%
      
$
1,000,000
  
Allendale, MI Public School District, UT GO Bonds, 5.00% (FSA INS), 5/1/2021
  
$
1,061,800
 
500,000
  
Anchor Bay, MI School District, Refunding UT GO Bonds (Series III), 5.50% (GTD by Q-SBLF), 5/1/2014
    
540,690
 
1,000,000
  
Anchor Bay, MI School District, Refunding UT GO Bonds (Series III), 5.50% (GTD by Q-SBLF), 5/1/2017
    
1,081,380
 
365,000
  
Anchor Bay, MI School District, School Building & Site UT GO Bonds (Series II), 6.125% (FGIC INS), 5/1/2011
    
398,175
 
1,070,000
  
Anchor Bay, MI School District, UT GO Bonds (Series 1999I), 5.75% (United States Treasury PRF 5/1/2009@100)/(Original Issue Yield: 5.80%), 5/1/2014
    
1,106,958
 
1,300,000
  
Ann Arbor, MI Public School District, School Building & Site UT GO Bonds, 5.00% (MBIA Insurance Corp. INS), 5/1/2019
    
1,391,377
 
1,125,000
  
Armada, MI Area Schools, School Building & Site UT GO Bonds, 5.00% (MBIA Insurance Corp. INS), 5/1/2021
    
1,182,656
 
1,060,000
  
Armada, MI Area Schools, School Building & Site UT GO Bonds, 5.00% (MBIA Insurance Corp. INS), 5/1/2023
    
1,103,322
 
1,000,000
  
Battle Creek, MI School District, School Building & Site UT GO Bonds, 5.00% (FSA INS), 5/1/2013
    
1,083,060
 
1,000,000
  
Battle Creek, MI School District, School Building & Site UT GO Bonds, 5.00% (FSA INS), 5/1/2022
    
1,055,920
 
2,000,000
  
Bay City, MI School District, School Building & Site UT GO Bonds (Series 2006), 5.00% (FSA INS), 5/1/2014
    
2,181,420
 
1,090,000
  
Boyne City, MI Public School District, UT GO Bonds, 5.60% (United States Treasury PRF 5/1/2009@100)/(Original Issue Yield: 5.70%), 5/1/2014
    
1,126,166
 
1,000,000
  
Brandon School District, MI, UT GO School Building and Site Bonds, 5.00% (FSA INS), 5/1/2019
    
1,070,290
 
1,215,000
  
Bridgeport Spaulding, MI Community School District, UT GO Bonds, 5.50% (GTD by Q-SBLF), 5/1/2015
    
1,313,877
 
1,245,000
  
Charlevoix, MI Public School District, Refunding UT GO Bonds, 5.25% (GTD by Q-SBLF), 5/1/2016
    
1,328,589
 
1,905,000
  
Chippewa Valley, MI Schools, UT GO School Building & Site Bonds, 5.00% (FSA INS), 5/1/2019
    
2,026,996
 
1,400,000
  
Coopersville, MI Public Schools, School Building & Site UT GO Bonds, 5.00% (FSA INS), 5/1/2021
    
1,478,316
 
1,250,000
  
Coopersville, MI Public Schools, School Building & Site UT GO Bonds, 5.00% (FSA INS), 5/1/2022
    
1,313,300
 
1,000,000
  
Cornell Township MI, Economic Development Corp., Refunding Revenue Bonds, 5.875% (MeadWestvaco Corp.)/(United States Treasury PRF 5/1/2012@100), 5/1/2018
    
1,103,320
 
1,000,000
  
Detroit, MI Water Supply System, Senior Lien Revenue Bonds (Series 1999A), 5.75% (United States Treasury PRF 1/1/2010@101)/(Original Issue Yield: 5.84%), 7/1/2019
    
1,063,860
 
1,000,000
  
Detroit, MI Water Supply System, Senior Lien Revenue Bonds (Series 2005-B), 5.50% (Berkshire Hathaway Assurance Corp. INS), 7/1/2020
    
1,115,100
 
2,000,000
  
Detroit, MI Water Supply System, Senior Lien Revenue Bonds (Series 2006A), 5.00% (FSA INS), 7/1/2018
    
2,149,820
 
1,335,000
  
Detroit, MI, Refunding UT GO Bonds, 5.75% (FSA INS), 4/1/2010
    
1,400,295
 
1,000,000
  
Detroit, MI, UT GO Bonds (Series 1999A), 5.00% (FSA INS)/(Original Issue Yield: 5.16%), 4/1/2019
    
1,023,420
 
1,000,000
  
Detroit, MI, UT GO Bonds, (Series A-1), 5.375% (MBIA Insurance Corp. INS), 4/1/2017
    
1,043,380
 
1,120,000
  
Detroit, MI, UT GO Bonds, (Series B), 5.00% (FSA INS), 4/1/2015
    
1,215,278
 
1,000,000
  
Detroit/Wayne County, MI Stadium Authority, Revenue Bonds, 5.25% (FGIC INS)/(Original Issue Yield: 5.55%), 2/1/2011
    
1,011,850
 
1,000,000
  
Dickinson County, MI Economic Development Corp., Refunding Environmental Improvement Revenue Bonds (Series 2002A), 5.75% (International Paper Co.), 6/1/2016
    
1,009,940
 
2,000,000
  
Dickinson County, MI Economic Development Corp., Refunding PCRBs (Series 2004A), 4.80% (International Paper Co.), 11/1/2018
    
1,866,800
 
1,925,000
  
East Grand Rapids, MI Public School District, Refunding UT GO Bonds (Series 2001), 5.50% (GTD by Q-SBLF), 5/1/2019
    
2,034,744
 
1,000,000
  
Hartland, MI Consolidated School District, Refunding UT GO Bonds, 5.375% (GTD by Q-SBLF), 5/1/2016
    
1,062,830
 
1,650,000
  
Hartland, MI Consolidated School District, UT GO Bonds, 5.75% (GTD by Q-SBLF), 5/1/2010
    
1,752,317
 
1,375,000
  
Howell, MI Public Schools, Refunding UT GO Bonds (Series 2001), 5.25% (GTD by Q-SBLF), 5/1/2014
    
1,455,451
 
1,575,000
  
Howell, MI Public Schools, Refunding UT GO Bonds, 5.25% (GTD by Q-SBLF), 5/1/2017
    
1,667,153
 
2,000,000
  
Howell, MI Public Schools, UT GO Bonds, 5.875% (United States Treasury PRF 5/1/2009@100)/(Original Issue Yield: 5.95%), 5/1/2022
    
2,071,340
 
2,000,000
  
Jackson County, MI Public Schools, UT GO Bonds, 5.60% (United States Treasury PRF 5/1/2010@100)/(Original Issue Yield: 5.70%), 5/1/2019
    
2,122,680
 
1,575,000
  
Jenison, MI Public Schools, UT GO Refunding Bonds, 5.25% (FGIC INS), 5/1/2011
    
1,663,547
 
1,000,000
  
Kalamazoo, MI Public Schools, Refunding Building & Site UT GO Bonds, 5.00% (FSA INS), 5/1/2018
    
1,077,620
 
1,785,000
  
Kent County, MI Airport Revenue, LT GO Airport Revenue Bonds (Series 2007), 5.00% (Gerald R. Ford International Airport), 1/1/2021
    
1,892,261
 
1,345,000
  
Kent County, MI, Capital Improvement LT GO Bonds (Series 2004A), 5.00%, 12/1/2020
    
1,438,141
 
1,250,000
  
Kent Hospital Finance Authority, MI, Revenue Bonds (Series 2005A), 5.50% (Metropolitan Hospital ), 7/1/2020
    
1,256,488
 
1,000,000
  
Lake Orion, MI School District, UT GO Bonds (Series 2000A), 5.75% (United States Treasury PRF 5/1/2010@100)/(Original Issue Yield: 5.89%), 5/1/2015
    
1,062,780
 
1,700,000
  
Lake Superior State University, MI, General Revenue Bonds, 5.50% (AMBAC INS), 11/15/2021
    
1,788,298
 
2,275,000
  
Lakeview, MI Public School District, Refunding UT GO Bonds, 5.00% (MBIA Insurance Corp. INS), 5/1/2017
    
2,493,718
 
1,000,000
  
Lansing, MI School District, Refunding School Building & Site UT GO Bonds, 5.00% (GTD by Q-SBLF), 5/1/2020
    
1,057,730
 
1,000,000
  
Madison, MI District Public Schools, Refunding UT GO Bonds, 5.50% (United States Treasury PRF 5/1/2009@100), 5/1/2015
    
1,032,270
 
1,000,000
  
Marshall, MI Public School District, UT GO Refunding Bonds, 4.00% (XL Capital Assurance Inc. INS), 5/1/2013
    
1,034,140
 
1,200,000
  
Marysville, MI Public School District, School Building & Site UT GO Bonds (Series 2007), 5.00% (FSA INS), 5/1/2022
    
1,267,104
 
2,000,000
  
Mattawan, MI Consolidated School District, UT GO Bonds, 5.65% (United States Treasury PRF 5/1/2010@100)/(Original Issue Yield: 5.67%), 5/1/2018
    
2,124,560
 
1,000,000
  
Michigan Municipal Bond Authority, Revenue Bonds (Series 2005B), 5.00% (Detroit, MI City School District)/(FSA INS), 6/1/2015
    
1,085,010
 
1,000,000
  
Michigan Municipal Bond Authority, Revenue Bonds (Series 2007B), 5.00% (AMBAC INS), 12/1/2013
    
1,070,610
 
2,190,000
  
Michigan Municipal Bond Authority, Revenue Bonds, 5.625% (Drinking Water Revolving Fund)/(United States Treasury PRF 10/1/2009@101), 10/1/2013
    
2,312,421
 
1,000,000
  
Michigan State Building Authority, Facilities Program Refunding Revenue Bonds (Series 2001I), 5.50%, 10/15/2019
    
1,062,770
 
2,000,000
1
Michigan State Building Authority, Revenue Bonds (Series 2006 IA)/(FGIC INS) 4.77%, 10/15/2021
    
993,520
 
1,100,000
  
Michigan State Building Authority, Revenue Refunding Bonds, (Series 1), 4.75% (Original Issue Yield: 4.98%), 10/15/2018
    
1,109,383
 
1,000,000
  
Michigan State Department of Transportation, GANs (Series 2007), 5.25% (FSA INS), 9/15/2019
    
1,099,080
 
1,500,000
  
Michigan State Hospital Finance Authority, Hospital Refunding Revenue Bonds (Series 2003A), 5.50% (Henry Ford Health System, MI)/(United States Treasury COL), 3/1/2013
    
1,653,975
 
1,275,000
  
Michigan State Hospital Finance Authority, Hospital Revenue & Refunding Bonds (Series 2007A), 5.00% (Oakwood Obligated Group), 7/15/2018
    
1,308,762
 
1,000,000
  
Michigan State Hospital Finance Authority, Hospital Revenue Bonds (Series 2005A), 5.00% (Marquette General Hospital, MI), 5/15/2012
    
1,014,050
 
1,000,000
  
Michigan State Hospital Finance Authority, Hospital Revenue Bonds (Series 2005A), 5.00% (Marquette General Hospital, MI), 5/15/2013
    
1,008,710
 
2,000,000
  
Michigan State Hospital Finance Authority, Hospital Revenue Bonds (Series 2006A), 5.00% (MidMichigan Obligated Group), 4/15/2026
    
1,992,860
 
1,000,000
  
Michigan State Hospital Finance Authority, Hospital Revenue and Refunding Bonds (Series 2006A), 5.00% (Henry Ford Health System, MI), 11/15/2021
    
1,009,590
 
1,300,000
  
Michigan State Hospital Finance Authority, Refunding Revenue Bonds (Series 2002A), 5.50% (Crittenton Hospital, MI), 3/1/2016
    
1,358,994
 
1,175,000
  
Michigan State Hospital Finance Authority, Refunding Revenue Bonds (Series A), 6.00% (Trinity Healthcare Credit Group)/(Original Issue Yield: 6.14%), 12/1/2020
    
1,243,961
 
1,000,000
  
Michigan State Hospital Finance Authority, Revenue & Refunding Bonds (Series 1998A), 5.10% (McLaren Health Care Corp.)/(Original Issue Yield: 5.15%), 6/1/2013
    
1,010,810
 
2,000,000
  
Michigan State Hospital Finance Authority, Revenue Bonds (Series 1993P), 5.375% (Sisters of Mercy Health System)/(United States Treasury COL)/(Original Issue Yield: 5.55%), 8/15/2014
    
2,160,320
 
2,000,000
  
Michigan State Hospital Finance Authority, Revenue Bonds (Series 1999A), 6.00% (Ascension Health Credit Group)/(MBIA Insurance Corp. INS), 11/15/2011
    
2,101,900
 
2,000,000
  
Michigan State Hospital Finance Authority, Revenue Bonds (Series 2005C), 5.00% (McLaren Health Care Corp.), 8/1/2020
    
2,016,640
 
2,000,000
  
Michigan State Hospital Finance Authority, Revenue Bonds (Series 2006A), 5.00% (Trinity Healthcare Credit Group), 12/1/2026
    
2,013,760
 
1,000,000
  
Michigan State Hospital Finance Authority, Revenue Refunding Bonds, 5.00% (Chelsea Community Hospital)/(Original Issue Yield: 5.30%), 5/15/2012
    
1,010,380
 
500,000
  
Michigan State Hospital Finance Authority, Revenue Refunding Bonds, 5.00% (Sparrow Obligated Group, MI), 11/15/2017
    
523,390
 
3,500,000
  
Michigan State House of Representatives, COP, 5.29% (Capitol Outlook LLC)/(United States Treasury COL)/(Original Issue Yield: 5.29%), 8/15/2022
    
1,778,980
 
820,000
  
Michigan State Strategic Fund, Revenue Bonds (Series 2004), 5.00% (NSF International), 8/1/2013
    
830,742
 
2,000,000
  
Michigan State Strategic Fund, Revenue Bonds, 4.25% TOBs (Republic Services, Inc.), Mandatory Tender 4/1/2014
    
1,880,320
 
175,000
  
Michigan State Strategic Fund, Revenue Bonds, 5.30% (Porter Hills Presbyterian Village, Inc.)/(Original Issue Yield: 5.422%), 7/1/2018
    
173,241
 
1,000,000
  
Michigan State Strategic Fund, Solid Disposal LT Obligation Refunding Revenue Bonds (Series 2002), 4.625% (Waste Management, Inc.), 12/1/2012
    
978,350
 
1,000,000
  
Michigan State Strategic Fund, Solid Waste Refunding LO Revenue Bonds, 4.50% (Waste Management, Inc.), 12/1/2013
    
963,170
 
1,000,000
  
Michigan State Trunk Line, Revenue Bonds (Series 2001A), 5.50% (United States Treasury PRF 11/1/2011@100), 11/1/2018
    
1,085,840
 
2,000,000
  
Michigan State Trunk Line, Revenue Bonds, 5.00% (FGIC INS), 11/1/2014
    
2,181,900
 
2,000,000
  
Michigan State University, LIBOR-Index Revenue Bonds (Series 2007B), 2.373% (AMBAC INS), 2/15/2028
    
1,700,000
 
1,250,000
  
Milan, MI Area Schools, UT GO Bonds (Series 2000A), 5.75% (United States Treasury PRF 5/1/2010@100)/(Original Issue Yield: 5.86%), 5/1/2020
    
1,330,175
 
1,350,000
  
North Branch, MI Area Schools, UT GO School Building and Site Bonds, 5.00% (MBIA Insurance Corp. INS), 5/1/2017
    
1,451,452
 
500,000
  
Northview Michigan Public School District, Refunding UT GO Bonds, 5.00% (FSA INS), 5/1/2019
    
540,295
 
600,000
  
Novi, MI Community School District, School Building & Site UT GO Bonds, 4.00% (MBIA Insurance Corp. INS), 5/1/2014
    
622,404
 
1,170,000
  
Romulus, MI Community Schools, UT GO Bonds, 6.00% (United States Treasury PRF 5/1/2009@100), 5/1/2011
    
1,213,056
 
1,130,000
  
Romulus, MI Tax Increment Finance Authority, Recreation Center LT GO Bonds, 5.00% (FSA INS), 11/1/2022
    
1,190,240
 
1,100,000
  
Roseville, MI Community Schools, School Building & Site Refunding UT GO Bonds, 5.00% (FSA INS), 5/1/2021
    
1,161,534
 
1,400,000
  
Saginaw, MI City School District, School Building and Site UT GO Bonds, 5.00% (FSA INS), 5/1/2018
    
1,508,668
 
1,000,000
  
Saginaw, MI Hospital Finance Authority, Hospital Revenue Refunding Bonds (Series 2004G), 5.00% (Covenant Medical Center, Inc.), 7/1/2017
    
1,016,210
 
1,500,000
  
Saginaw, MI Hospital Finance Authority, Refunding Revenue Bonds (Series 1999E), 5.625% (Covenant Medical Center, Inc.)/(MBIA Insurance Corp. INS), 7/1/2013
    
1,558,380
 
5,000,000
  
Saginaw, MI Hospital Finance Authority, Revenue Bonds, (Series F), 6.50% (Covenant Medical Center, Inc.)/(Original Issue Yield: 6.645%), 7/1/2030
    
5,293,600
 
1,000,000
  
Sault Ste Marie, MI Area Public Schools, UT GO Bonds, 5.375% (United States Treasury PRF 5/1/2009@100)/(Original Issue Yield: 5.65%), 5/1/2019
    
1,031,140
 
1,130,000
  
Taylor, MI Building Authority, Refunding LT GO Bonds, 5.00% (MBIA Insurance Corp. INS), 12/1/2015
    
1,226,558
 
1,350,000
  
Thornapple Kellogg, MI School District, School Building & Site Refunding UT GO Bonds, 5.00% (MBIA Insurance Corp. INS), 5/1/2022
    
1,425,492
 
1,250,000
  
Trenton, MI Building Authority, LT GO Bonds, 5.625% (United States Treasury PRF 10/1/2010@101)/(Original Issue Yield: 5.73%), 10/1/2021
    
1,352,825
 
2,000,000
  
Troy, MI City School District, School Building & Site UT GO Bonds, 5.00% (MBIA Insurance Corp. INS), 5/1/2020
    
2,125,760
 
1,000,000
  
University of Michigan, Revenue Refunding Bonds, (Series A-1), 5.25% (University of Michigan Health System), 12/1/2009
    
1,012,110
 
500,000
  
Utica, MI Community Schools, School Building and Site Refunding UT GO Bonds, 5.00% (MBIA Insurance Corp. INS), 5/1/2017
    
548,070
 
1,625,000
  
Warren Woods, MI Public Schools, School Building & Site UT GO Bonds, 5.00% (FSA INS), 5/1/2018
    
1,751,133
 
2,000,000
  
Wayne County, MI Airport Authority, Airport Refunding Revenue Bonds, 5.00% (FGIC INS), 12/1/2022
    
2,025,660
 
2,000,000
  
Wayne State University, MI, General Revenue Refunding Bonds (Series 2008), 5.00% (FSA INS), 11/15/2019
    
2,175,420
 
1,775,000
  
West Bloomfield, MI School District, Refunding UT GO Bonds, 5.50% (United States Treasury PRF 5/1/2011@100), 5/1/2015
    
1,914,621
 
900,000
  
West Bloomfield, MI School District, UT GO Bonds, 5.70% (United States Treasury PRF 5/1/2010@100)/(Original Issue Yield: 5.75%), 5/1/2014
    
956,889
 
1,000,000
  
West Branch Rose City, MI Area School District, UT GO Bonds, 5.50% (United States Treasury PRF 5/1/2009@100)/(Original Issue Yield: 5.60%), 5/1/2017
    
1,032,270
 
1,025,000
  
Whitehall, MI District Schools, UT GO Bonds, 5.50% (United States Treasury PRF 11/1/2011@100), 5/1/2016
    
1,115,426
 
380,000
  
Wyandotte, MI Electric Authority, Revenue Refunding Bonds, 6.25% (MBIA Insurance Corp. INS)/(Original Issue Yield: 6.55%), 10/1/2008
    
384,925
 
2,350,000
  
Ypsilanti, MI School District, UT GO Bonds, 5.00% (MBIA Insurance Corp. INS), 5/1/2023
    
2,468,934
     
TOTAL MUNICIPAL BONDS (IDENTIFIED COST $145,168,394)
    
148,369,213
     
SHORT-TERM MUNICIPALS--3.8%2
      
     
Michigan--2.6%
      
 
4,000,000
  
Michigan State Hospital Finance Authority, (Series 1999 A) Weekly VRDNs (Covenant Retirement Communities, Inc.)/(LaSalle Bank, N.A. LOC), 1.600%, 6/5/2008
    
4,000,000
     
Puerto Rico--1.2%
      
 
1,950,000
  
Puerto Rico Government Development Bank (GDB) Weekly VRDNs (MBIA Insurance Corp. INS)/(Credit Suisse, Zurich LIQ), 2.400%, 6/4/2008
    
1,950,000
     
TOTAL SHORT-TERM MUNICIPALS (AT AMORTIZED COST)
    
5,950,000
     
TOTAL MUNICIPAL INVESTMENTS – 99.2%
(IDENTIFIED COST $151,118,394)3
    
154,319,213
     
OTHER ASSETS AND LIABILITIES – NET – 0.8%4
    
1,220,095
     
TOTAL NET ASSETS – 100%
  
$
155,539,308

 
Securities that are subject to the federal alternative minimum tax (AMT) represent 3.4% of the Fund’s portfolio as calculated based upon total market value.
   
1
Zero coupon bond, reflects effective rate at time of purchase.
2
Current rate and next reset date shown for Variable Rate Demand Notes.
3
At May 31, 2008, the cost of investments for federal tax purposes was $151,077,518. The net unrealized appreciation of investments for federal tax purposes was $3,241,695. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $4,437,796 and net unrealized depreciation from investments for those securities having an excess of cost over value of $1,196,101.
4
Assets, other than investment in securities, less liabilities.

Note:           The categories of investments are shown as a percentage of total net assets at May 31, 2008.
 
Investment Valuation
 
In calculating its net asset value (NAV), the Fund generally values investments as follows:
 
·  
Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board of Trustees (the “Trustees”).
 
·  
Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).
 
·  
Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
 
·  
Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.
 
·  
Shares of other mutual funds are valued based upon their reported NAVs.
 
If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund’s NAV.
 
 
Fair Valuation and Significant Events Procedures
 
The Trustees have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV. Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers, and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.
 
The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment’s value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:
 
·  
With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets; 
 
·  
Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
 
·  
Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer’s operations or regulatory changes or market developments affecting the issuer’s industry.
 
The Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Trustees.
 
The following acronyms are used throughout this portfolio:
 
AMBAC
--American Municipal Bond Assurance Corporation
COL
--Collateralized
COP
--Certificate of Participation
FGIC
--Financial Guaranty Insurance Company
FSA
--Financial Security Assurance
GANs
--Grant Anticipation Notes
GO
--General Obligation
GTD
--Guaranteed
INS
--Insured
LIBOR
--London Interbank Offered Rate
LIQ
--Liquidity Agreement
LO
--Limited Obligation
LOC
--Letter of Credit
LT
--Limited Tax
PCRBs
--Pollution Control Revenue Bonds
PRF
--Prerefunded
Q-SBLF
--Qualified State Bond Loan Fund
TOBs
--Tender Option Bonds
UT
--Unlimited Tax
VRDNs
--Variable Rate Demand Notes

 
 
 

Federated New York Municipal Income Fund
 
Portfolio of Investments
 
May 31, 2008 (unaudited)
 
 
Principal
Amount
        
Value
     
MUNICIPAL BONDS--96.9%
      
     
New York--89.8%
      
$
500,000
  
Albany, NY IDA, Civic Facility Revenue Bonds, (Series A), 5.75% (Albany Law School of Union University)/(United States Treasury PRF 10/1/2010@100)/(Original Issue Yield: 5.83%), 10/1/2030
  
$
538,285
 
500,000
  
Albany, NY IDA, IDRBs (Series 2004A), 5.375% (Albany College of Pharmacy), 12/1/2024
    
482,765
 
500,000
  
Albany, NY IDA, Tax-Exempt Civic Facility Revenue Bonds (Series 2007A), 5.00% (Albany Law School of Union University)/(Original Issue Yield: 5.05%), 7/1/2031
    
459,555
 
375,000
  
Amherst, NY IDA, Civic Facility Revenue Bonds (Series 2006A), 5.20% (Beechwood Health Care Center, Inc.), 1/1/2040
    
308,719
 
500,000
  
Broome County, NY IDA, Civic Facility Revenue Bonds (Series 2004B), 5.00% (University Plaza-Phase II )/(ACA Financial Guaranty Company INS)/(Original Issue Yield: 5.05%), 8/1/2025
    
428,130
 
400,000
  
Cattaraugus County, NY IDA, Civic Facility Revenue Bonds, 5.10% (St. Bonaventure University), 5/1/2031
    
358,664
 
280,000
  
Dutchess County, NY IDA, Refunding Revenue Bonds (Series 2004A), 7.50% (St. Francis Hospital and Health Centers), 3/1/2029
    
298,245
 
785,000
  
Dutchess County, NY IDA, Revenue Bonds, 5.00% (Marist College)/(Original Issue Yield: 5.15%), 7/1/2020
    
804,429
 
500,000
  
East Rochester, NY Housing Authority, Revenue Bonds (Series 2002A), 5.375% (Rochester St. Mary's Residence Facility LLC)/(GTD by GNMA), 12/20/2022
    
520,630
 
335,000
  
East Rochester, NY Housing Authority, Senior Living Revenue Bonds (Series 2006), 5.50% (Woodland Village, Inc.), 8/1/2033
    
294,478
 
200,000
  
Essex County, NY IDA, Environmental Improvement Revenue Bonds (Series 2006A), 4.60% (International Paper Co.), 12/1/2030
    
152,148
 
750,000
  
Hempstead Town, NY IDA, Civic Facility Revenue Bonds, 5.00% (Adelphi University), 10/1/2035
    
753,240
 
500,000
  
Hempstead Town, NY IDA, Civic Facility Revenue Bonds, 5.00% (Hofstra University)/
(Original Issue Yield: 5.10%), 7/1/2033
    
501,980
 
220,000
  
Islip, NY Resource Recovery Agency, Resource Recovery Revenue Bonds (Series 2001E), 5.75% (FSA INS), 7/1/2023
    
230,133
 
500,000
  
Livingston County, NY IDA, Civic Facility Revenue Bonds (Series 2005), 6.00% (Nicholas H. Noyes Memorial Hospital Civic Facility), 7/1/2030
    
481,055
 
1,000,000
  
Long Island Power Authority, NY, Electric System General Revenue Bonds (Series 2006B), 5.00%, 12/1/2035
    
1,012,500
 
500,000
  
Madison County, NY IDA, Civic Facility Revenue Bonds (Series 2003A), 5.00% (Colgate University), 7/1/2023
    
516,970
 
250,000
  
Metropolitan Transportation Authority, NY, Revenue Bonds (Series 1998A), 5.00% (MTA Dedicated Tax Fund)/(United States Treasury PRF 10/1/2015@100)/(Original Issue Yield: 5.22%), 4/1/2023
    
278,082
 
500,000
  
Metropolitan Transportation Authority, NY, Revenue Bonds (Series 2006A), 5.00% (MTA Transportation Revenue), 11/15/2035
    
503,415
 
500,000
  
Metropolitan Transportation Authority, NY, Transportation Revenue Bonds (Series 2007B), 5.00%, 11/15/2033
    
504,115
 
500,000
  
Middletown, NY Housing Authority, MFH Revenue Bonds (Series 2006), 4.80% (Summitfield & Moore Heights Apartments)/(GTD by FNMA), 7/1/2039
    
452,245
 
500,000
  
Monroe County, NY IDA, Civic Center Revenue Bonds, 5.25% (St. John Fisher College)/
(Radian Asset Assurance INS)/(Original Issue Yield: 5.25%), 6/1/2026
    
505,690
 
510,000
  
Monroe County, NY IDA, Student Housing Revenue Bonds (Series A), 5.375% (Rochester, NY Institute of Technology)/(Original Issue Yield: 5.46%), 4/1/2029
    
467,797
 
115,000
  
Nassau County, NY IDA, Civic Facility Refunding Revenue Bonds (Series 2001B), 5.875% (North Shore-Long Island Jewish Obligated Group)/(Original Issue Yield: 5.92%), 11/1/2011
    
119,791
 
500,000
  
Nassau County, NY IDA, IDRBs (Series 2003A), 5.25% (Keyspan-Glenwood Energy Center LLC)/(GTD by KeySpan Corp.), 6/1/2027
    
494,080
 
500,000
  
New York City, NY IDA, (Series 1995) Civic Facility Revenue Bonds, 6.30% (College of New Rochelle)/(Original Issue Yield: 6.45%), 9/1/2015
    
500,925
 
250,000
  
New York City, NY IDA, Civic Facilities Revenue Bonds, 5.375% (New York University)/
(AMBAC INS), 7/1/2017
    
264,380
 
385,000
  
New York City, NY IDA, Civic Facility Revenue Bonds (Series 2001A), 6.375% (Staten Island University Hospital), 7/1/2031
    
375,002
 
200,000
  
New York City, NY IDA, Civic Facility Revenue Bonds (Series 2002C), 6.45% (Staten Island University Hospital), 7/1/2032
    
196,344
 
400,000
1
New York City, NY IDA, Liberty Revenue Bonds (Series A), 6.25% (7 World Trade Center LLC), 3/1/2015
    
404,204
 
500,000
  
New York City, NY IDA, Special Airport Facility Revenue Bonds (Series 2001A), 5.50% (Airis JFK I LLC Project at JFK International)/(Original Issue Yield: 5.65%), 7/1/2028
    
433,755
 
500,000
  
New York City, NY IDA, Special Facilities Revenue Bonds, 5.25% (British Airways), 12/1/2032
    
340,925
 
300,000
  
New York City, NY IDA, Special Facilities Revenue Bonds, 5.50% (Terminal One Group Association), 1/1/2024
    
305,379
 
500,000
  
New York City, NY Municipal Water Finance Authority, Revenue Bonds (Series 2002B), 5.00% (Original Issue Yield: 5.14%), 6/15/2026
    
513,745
 
500,000
  
New York City, NY Transitional Finance Authority, Future Tax Secured Bonds (2003 Series C), 5.25% (AMBAC INS), 8/1/2022
    
525,715
 
500,000
  
New York City, NY, UT GO Bonds (Fiscal 2005 Series C), 5.25%, 8/15/2025
    
519,805
 
515,000
  
New York City, NY, UT GO Bonds (Series 2002C), 5.50% (United States Treasury PRF 3/15/2012@100), 3/15/2015
    
563,580
 
500,000
  
New York Counties Tobacco Trust III, Revenue Bonds, 5.75% (Original Issue Yield: 5.93%), 6/1/2033
    
496,720
 
700,000
  
New York Liberty Development Corp., Revenue Bonds (Series 2005), 5.25% (Goldman Sachs Group, Inc.), 10/1/2035
    
729,078
 
300,000
1
New York Liberty Development Corp., Revenue Bonds (Series 2006A), 6.125% (National Sports Museum), 2/15/2019
    
300,951
 
500,000
  
New York State Dormitory Authority, Education Facilities Revenue Bonds (Series 2002A), 5.125% (State University of New York)/(United States Treasury PRF 5/15/2012@101), 5/15/2021
    
546,365
 
500,000
  
New York State Dormitory Authority, FHA-INS Mortgage Hospital Revenue Bonds (Series 2007), 5.25% (New York Presbyterian Hospital)/(FSA INS), 2/15/2031
    
517,345
 
500,000
  
New York State Dormitory Authority, FHA-INS Mortgage Nursing Home Revenue Bonds (Series 2001), 6.10% (Norwegian Christian Home and Health Center)/(MBIA Insurance Corp. INS), 8/1/2041
    
538,355
 
1,000,000
  
New York State Dormitory Authority, INS Revenue Bonds (Series 1999), 6.00% (Pratt Institute)/(Radian Asset Assurance INS), 7/1/2020
    
1,038,420
 
500,000
  
New York State Dormitory Authority, INS Revenue Bonds (Series 2005), 5.125% (Providence Rest Home)/(ACA Financial Guaranty Company INS), 7/1/2030
    
417,395
 
500,000
  
New York State Dormitory Authority, Lease Revenue Bonds (Series 2006A), 5.00% (State University of New York)/(MBIA Insurance Corp. INS), 7/1/2031
    
514,040
 
2,000,000
  
New York State Dormitory Authority, Pooled Loan Program INS Revenue Bonds (Series 2005A), 5.00% (Cerebral Palsy Associations of New York State)/(Assured Guaranty Corp. INS), 7/1/2034
    
2,041,640
 
750,000
  
New York State Dormitory Authority, Revenue Bonds (2003 Series 1), 5.00% (Memorial Sloan-Kettering Cancer Center)/(MBIA Insurance Corp. INS), 7/1/2022
    
781,725
 
500,000
  
New York State Dormitory Authority, Revenue Bonds (Series 1998), 5.50% (Memorial Sloan-Kettering Cancer Center)/(MBIA Insurance Corp. INS), 7/1/2023
    
551,995
 
300,000
  
New York State Dormitory Authority, Revenue Bonds (Series 2002), 5.00% (Fordham University)/(United States Treasury PRF 7/1/2012@100), 7/1/2022
    
324,345
 
750,000
  
New York State Dormitory Authority, Revenue Bonds (Series 2003), 5.00% (Kateri
Residence )/(Allied Irish Banks PLC LOC), 7/1/2022
    
775,455
 
250,000
  
New York State Dormitory Authority, Revenue Bonds (Series 2003), 5.375% (North Shore-Long Island Jewish Obligated Group)/(United States Treasury PRF 5/1/2013@100)/(Original Issue Yield: 5.48%), 5/1/2023
    
276,565
 
750,000
  
New York State Dormitory Authority, Revenue Bonds (Series 2003A), 5.50% (Winthrop-University Hospital Association)/(Original Issue Yield: 5.70%), 7/1/2023
    
761,242
 
500,000
  
New York State Dormitory Authority, Revenue Bonds (Series 2004), 5.25% (New York Methodist Hospital), 7/1/2024
    
499,975
 
250,000
  
New York State Dormitory Authority, Revenue Bonds (Series 2004A), 5.25% (University of Rochester, NY), 7/1/2024
    
261,092
 
500,000
  
New York State Dormitory Authority, Revenue Bonds (Series 2005C), 5.50% (Mt. Sinai NYU Health Obligated Group), 7/1/2026
    
500,015
 
1,000,000
  
New York State Dormitory Authority, Revenue Bonds (Series 2005F), 5.00% (New York State Personal Income Tax Revenue Bond Fund)/(AMBAC INS), 3/15/2025
    
1,039,000
 
500,000
  
New York State Dormitory Authority, Revenue Bonds (Series 2006), 5.00% (Memorial Sloan-Kettering Cancer Center), 7/1/2035
    
510,985
 
1,000,000
  
New York State Dormitory Authority, Revenue Bonds (Series 2007), 5.00% (Mt. Sinai School of Medicine of New York University )/(MBIA Insurance Corp. INS), 7/1/2027
    
1,024,170
 
250,000
  
New York State Dormitory Authority, Revenue Bonds (Series 2007A), 5.00% (NYU Hospitals Center), 7/1/2036
    
219,300
 
500,000
  
New York State Dormitory Authority, Revenue Bonds (Series 2007A), 5.00% (North Shore-Long Island Jewish Obligated Group), 5/1/2037
    
480,055
 
250,000
  
New York State Dormitory Authority, Revenue Bonds (Series A), 5.00% (NYU Hospitals Center), 7/1/2026
    
229,865
 
250,000
  
New York State Dormitory Authority, Revenue Bonds (Series A), 5.625% (City University of New York)/(Original Issue Yield: 5.95%), 7/1/2016
    
277,727
 
625,000
  
New York State Dormitory Authority, Revenue Bonds, 4.65% (New York Hospital Medical Center of Queens)/(FHA INS), 8/15/2027
    
616,212
 
300,000
  
New York State Environmental Facilities Corp., Clean Water & Drinking Water Revolving Funds Revenue Bonds (Series 2008A), 5.00%, 6/15/2029
    
312,993
 
1,000,000
  
New York State Thruway Authority, Revenue Bonds (Series 2006A), 5.00% (New York State Thruway Authority - Dedicated Highway & Bridge Trust Fund)/(AMBAC INS), 4/1/2026
    
1,038,670
 
250,000
  
New York State Urban Development Corp., Revenue Refunding Bonds (Series 1995), 5.70% (New York State)/(Original Issue Yield: 5.94%), 4/1/2020
    
284,877
 
500,000
  
New York State Urban Development Corp., Subordinated Lien Revenue Bonds (Series 2004A), 5.125% (New York State), 1/1/2022
    
519,695
 
500,000
  
Niagara County, NY IDA, Solid Waste Disposal Facility Revenue Refunding Bonds (Series 2001D), 5.55% TOBs (American Ref-Fuel Co. of Niagara, L.P. Facility) Mandatory Tender 11/15/2015
    
489,430
 
500,000
  
Rensselaer County, NY IDA, Civic Facility Revenue Bonds (Series 2006), 5.00% (Emma Willard School ), 1/1/2036
    
511,380
 
500,000
  
Rensselaer County, NY IDA, Civic Facility Revenue Bonds (Series 2006), 5.00% (Rensselaer Polytechnic Institute), 3/1/2036
    
507,665
 
500,000
  
Rensselaer, NY City School District, COPs (Series 2006), 5.00% (XL Capital Assurance Inc. INS), 6/1/2036
    
487,495
 
500,000
  
Seneca County, NY IDA, Civic Facility Revenue Bonds (Series 2007), 5.00% (New York Chiropractic College), 10/1/2027
    
477,475
 
450,000
  
Syracuse, NY IDA, School Facility Revenue Bonds (Series 2008A), 5.00% (Syracuse CSD, NY)/(FSA INS), 5/1/2028
    
467,096
 
500,000
  
TSASC, Inc. NY, Tobacco Settlement Asset-Backed Bonds (Series 2006-1), 5.00% (Original Issue Yield: 5.125%), 6/1/2026
    
460,180
 
440,000
  
Tompkins County, NY IDA, Continuing Care Retirement Community Revenue Bonds (Series 2003A), 5.375% (Kendal at Ithaca, Inc.)/(Original Issue Yield: 5.50%), 7/1/2018
    
440,141
 
500,000
  
Triborough Bridge & Tunnel Authority, NY, General Revenue Bonds (Series 2008A), 5.00% (Original Issue Yield: 5.10%), 11/15/2037
    
515,825
 
500,000
  
United Nations, NY Development Corp., Senior Lien Refunding Revenue Bonds (Series 2004A), 5.25%, 7/1/2022
    
500,750
 
300,000
  
Utica, NY Industrial Development Agency Civic Facility, Revenue Bonds (Series 2004A), 6.875% (Utica College)/(United States Treasury PRF 6/1/2009@101), 12/1/2024
    
316,722
 
500,000
  
Westchester County, NY IDA, Civic Facility Revenue Bonds (Series 2001), 5.20% (Windward School)/(Radian Asset Assurance INS)/(Original Issue Yield: 5.21%), 10/1/2021
    
504,835
 
175,000
  
Westchester County, NY IDA, Continuing Care Retirement Mortgage Revenue Bonds (Series 2003A), 6.375% (Kendal on Hudson )/(Original Issue Yield: 6.55%), 1/1/2024
    
177,412
 
500,000
  
Yonkers, NY IDA, Revenue Bonds (Series 2006A), 5.00% (Sacred Heart Association)/(GTD by New York State Mortgage Agency), 10/1/2037
    
479,195
 
1,000,000
  
Yonkers, NY IDA, Revenue Bonds, 5.25% (Monastery Manor Association LP)/(GTD by New York State Mortgage Agency), 4/1/2037
    
989,660
     
TOTAL
    
42,162,428
     
Puerto Rico--7.1%
      
 
500,000
  
Children's Trust, PR, Tobacco Settlement Asset-Backed Revenue Bonds, 6.00% (United States Treasury PRF 7/1/2010@100)/(Original Issue Yield: 6.077%), 7/1/2026
    
530,205
 
630,000
  
Commonwealth of Puerto Rico, Public Improvement UT GO Bonds (Series 2004A), 5.00% (United States Treasury PRF 7/1/2014@100), 7/1/2034
    
694,443
 
370,000
  
Commonwealth of Puerto Rico, Public Improvement UT GO Bonds (Series 2004A), 5.00%, 7/1/2034
    
363,632
 
500,000
  
Puerto Rico Highway and Transportation Authority, Revenue Bonds (Series B), 5.75% (United States Treasury PRF 7/1/2010@101)/(Original Issue Yield: 5.78%), 7/1/2016
    
540,230
 
325,000
  
Puerto Rico Highway and Transportation Authority, Transportation Revenue Bonds (Series G), 5.00% (United States Treasury PRF 7/1/2013@100)/(Original Issue Yield: 5.10%), 7/1/2033
    
354,962
 
240,000
  
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds (Series 2006), 5.00% (Ana G. Mendez University System), 3/1/2026
    
221,626
 
100,000
  
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds (Series 2006), 5.00% (Ana G. Mendez University System), 3/1/2036
    
87,529
 
135,000
  
Puerto Rico Public Building Authority, Revenue Bonds (Series 2002D), 5.25% (GTD by Commonwealth of Puerto Rico)/(Original Issue Yield: 5.40%), 7/1/2027
    
134,671
 
365,000
  
Puerto Rico Public Building Authority, Revenue Bonds (Series 2002D), 5.25% (United States Treasury PRF 7/1/2012@100)/(Original Issue Yield: 5.40%), 7/1/2027
    
390,116
     
TOTAL
    
3,317,414
     
TOTAL INVESTMENTS—96.9%
(IDENTIFIED COST $45,812,075)2
    
45,479,842
     
OTHER ASSETS AND LIABILITIES – NET—3.1%3
    
1,475,805
     
TOTAL NET ASSETS—100%
  
$
46,955,647

 
At May 31, 2008, the Fund had the following open swap/rate lock contract:
 
Counterparty
Pay
Receive
Expiration Date
Notional
Amount
Value
 
Goldman Sachs and Co.
4.71%
10 Year MMD Rate
6/5/2008
$2,000,000
$(2,094,373)

 
Value of Swap/Rate Lock Contract is included in “Other Assets and Liabilities-Net”.

 
Securities that are subject to the federal alternative minimum tax (AMT) represent 8.5% of the Fund’s portfolio as calculated based upon total market value.
1
Denotes a restricted security that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) is subject to a contractual restriction on public sales. At May 31, 2008, these restricted securities amounted to $705,155, which represented 1.5% of total net assets.
 
Additional information on restricted securities, excluding securities purchased under Rule 144A that have been deemed liquid by the Trustees, held at May 31, 2008, is as follows:
Security
Acquisition Date
Acquisition Cost
  
New York City, NY IDA, Liberty Revenue Bonds (Series A), 6.25% (7 World Trade Center LLC), 3/1/2015
3/15/2005
$400,000
  
New York Liberty Development Corp., Revenue Bonds (Series 2006A), 6.125% (National Sports Museum), 2/15/2019
8/7/2006
$300,000
  
2
At May 31, 2008, the cost of investments for federal tax purposes was $45,809,834.  The net unrealized depreciation of investments for federal tax purposes excluding any unrealized depreciation resulting from swap/rate lock contracts was $329,992.  This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $939,365 and net unrealized depreciation from investments for those securities having an excess of cost over value of $1,269,357.
3
Assets, other than investments in securities, less liabilities.

 
Note: The categories of investments are shown as a percentage of total net assets at May 31, 2008.
 
Investment Valuation
 
In calculating its net asset value (NAV), the Fund generally values investments as follows:
 
·  
Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board of Trustees (the “Trustees”).
 
·  
Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).
 
·  
Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
 
·  
Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.
 
·  
Shares of other mutual funds are valued based upon their reported NAVs.
 
If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund’s NAV.
 
 
Fair Valuation and Significant Events Procedures
 
The Trustees have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV. Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers, and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.
 
The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment’s value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:
 
·  
With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets; 
 
·  
Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
 
·  
Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer’s operations or regulatory changes or market developments affecting the issuer’s industry.
 
The Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Trustees.
 
 
The following acronyms are used throughout this portfolio:
 
AMBAC
--American Municipal Bond Assurance Corporation
COPs
--Certificates of Participation
CSD
--Central School District
FHA
--Federal Housing Administration
FNMA
--Federal National Mortgage Association
FSA
--Financial Security Assurance
GNMA
--Government National Mortgage Association
GO
--General Obligation
GTD
--Guaranteed
IDA
--Industrial Development Authority
IDRBs
--Industrial Development Revenue Bonds
INS
--Insured
LOC
--Letter of Credit
MFH
--Multi-Family Housing
PRF
--Prerefunded
TOBs
--Tender Option Bonds
UT
--Unlimited Tax

 
 
 


Federated North Carolina Municipal Income Fund
 
Portfolio of Investments
 
May 31, 2008 (unaudited)
 
 
Principal
Amount
        
Value
     
MUNICIPAL BONDS--90.7%
      
     
North Carolina--87.1%
      
$
500,000
  
Albemarle, NC Hospital Authority, Health Care Facilities Revenue & Refunding Bonds (Series 2007), 5.25%, 10/1/2038
  
$
454,965
 
1,190,000
  
Appalachian State University, NC, Parking System Revenue Bonds, 5.625% (United States Treasury PRF 7/15/2010@101)/(Original Issue Yield: 5.65%), 7/15/2025
    
1,282,154
 
860,000
  
Asheville, NC Housing Authority, MFH Revenue Bonds, 5.625% TOBs (Oak Knoll Apartments Project)/(GTD by FNMA) Mandatory Tender 9/1/2021
    
876,478
 
500,000
  
Broad River, NC Water Authority, Water System Revenue Bonds (Series 2000), 5.375% (United States Treasury PRF 6/1/2010@101)/(Original Issue Yield: 5.55%), 6/1/2026
    
534,630
 
1,000,000
  
Charlotte, NC Airport, Revenue Bonds (Series B), 5.875% (MBIA Insurance Corp. INS)/
(Original Issue Yield: 5.95%), 7/1/2019
    
1,020,530
 
335,000
  
Charlotte, NC, UT GO Bonds, 5.00%, 8/1/2017
    
373,190
 
500,000
  
Charlotte-Mecklenburg Hospital Authority, NC, Health Care Revenue & Refunding Bonds (Series 2007A), 5.00% (Carolinas HealthCare System)/(Original Issue Yield: 5.09%), 1/15/2031
    
500,320
 
500,000
  
Columbus County, NC Industrial Facilities & PCFA, Revenue Bonds (Series 1996A), 5.85% (International Paper Co.), 12/1/2020
    
490,455
 
500,000
  
Craven County, NC, COPs (Series 2007), 5.00% (MBIA Insurance Corp. INS), 6/1/2027
    
512,385
 
1,000,000
  
Fayetteville, NC Public Works Commission, Revenue Bonds (Series 1999), 5.70% (United States Treasury PRF 3/1/2010@101)/(Original Issue Yield: 5.79%), 3/1/2019
    
1,068,310
 
750,000
  
Harnett County, NC, COPs, 5.50% (United States Treasury PRF 12/1/2010@101)/(Original Issue Yield: 5.41%), 12/1/2015
    
811,995
 
1,000,000
  
Haywood County, NC Industrial Facilities & PCFA, Revenue Refunding Bonds, 6.40% (Champion International Corp.)/(Original Issue Yield: 6.42%), 11/1/2024
    
1,002,060
 
1,000,000
  
High Point, NC, Public Improvement UT GO Bonds (Series 2000B), 5.50% (United States Treasury PRF 6/1/2010@102)/(Original Issue Yield: 5.67%), 6/1/2018
    
1,081,250
 
500,000
  
Iredell County, NC, COPs (Series 2008), 5.125% (FSA INS)/(Original Issue Yield: 5.13%), 6/1/2027
    
520,940
 
500,000
  
Johnston Memorial Hospital Authority, NC, FHA Insured Mortgage Revenue Bonds (Series 2008), 5.25% (Johnston Memorial Hospital )/(FSA INS), 10/1/2024
    
526,665
 
500,000
  
North Carolina Capital Facilities Finance Agency, Revenue Bonds (Series 2005A), 5.00% (Duke University), 10/1/2041
    
511,365
 
500,000
  
North Carolina Eastern Municipal Power Agency, Power System Refunding Revenue Bonds (Series 2003C), 5.375% (Original Issue Yield: 5.57%), 1/1/2017
    
517,300
 
500,000
  
North Carolina Eastern Municipal Power Agency, Power System Revenue Bonds (Series 1999D), 6.70%, 1/1/2019
    
523,095
 
505,000
  
North Carolina HFA, Home Ownership Revenue Bonds (Series 5-A), 5.55%, 1/1/2019
    
516,034
 
415,000
  
North Carolina HFA, Home Ownership Revenue Bonds (Series 6-A), 6.10%, 1/1/2018
    
418,714
 
260,000
  
North Carolina Medical Care Commission, FHA INS Mortgage Revenue Bonds (Series 2003), 5.375% (Betsy Johnson Regional Hospital)/(FSA INS), 10/1/2024
    
276,112
 
500,000
  
North Carolina Medical Care Commission, Health Care Facilities First Mortgage Revenue Bonds (Series 2001), 6.625% (Moravian Homes, Inc.)/(United States Treasury PRF 4/1/2011@101)/(Original Issue Yield: 7.00%), 4/1/2031
    
553,205
 
250,000
  
North Carolina Medical Care Commission, Health Care Facilities First Mortgage Revenue Bonds (Series 2005A), 6.00% (Pennybyrn at Maryfield), 10/1/2023
    
239,120
 
1,500,000
  
North Carolina Medical Care Commission, Health Care Facilities First Mortgage Revenue Bonds (Series 2006A), 5.00% (The Pines at Davidson), 1/1/2036
    
1,354,800
 
500,000
  
North Carolina Medical Care Commission, Health Care Facilities First Mortgage Revenue Bonds, 6.25% (Arbor Acres Community)/(United States Treasury PRF 3/1/2012@101)/
(Original Issue Yield: 6.40%), 3/1/2027
    
556,000
 
500,000
  
North Carolina Medical Care Commission, Health Care Facilities First Mortgage Revenue Bonds, 6.875% (Presbyterian Homes, Inc.)/(United States Treasury PRF 10/1/2010@101)/
(Original Issue Yield: 7.00%), 10/1/2021
    
550,965
 
500,000
  
North Carolina Medical Care Commission, Health Care Facilities First Mortgage Revenue Refunding Bonds (Series 2004A), 5.00% (Deerfield Episcopal Retirement Community), 11/1/2023
    
494,160
 
470,000
  
North Carolina Medical Care Commission, Health Care Facilities First Mortgage Revenue Refunding Bonds (Series 2006), 5.10% (Moravian Homes, Inc.), 10/1/2030
    
409,224
 
1,000,000
  
North Carolina Medical Care Commission, Health Care Facilities Revenue Bonds (Series 1999), 6.25% (Stanly Memorial Hospital Project)/(Original Issue Yield: 6.40%), 10/1/2019
    
1,027,460
 
250,000
  
North Carolina Medical Care Commission, Health Care Facilities Revenue Bonds (Series 2002A), 5.25% (Union Regional Medical Center)/(Original Issue Yield: 5.33%), 1/1/2021
    
252,670
 
200,000
  
North Carolina Medical Care Commission, Health Care Facilities Revenue Bonds (Series 2002A), 5.25% (Union Regional Medical Center)/(Original Issue Yield: 5.38%), 1/1/2022
    
201,680
 
1,205,000
  
North Carolina Medical Care Commission, Health Care Facilities Revenue Bonds (Series 2004A), 5.25% (Cleveland Community Healthcare)/(AMBAC INS), 7/1/2021
    
1,249,031
 
1,230,000
  
North Carolina Medical Care Commission, Health Care Facilities Revenue Bonds, 5.50% (Hugh Chatham Memorial Hospital )/(Radian Asset Assurance INS), 10/1/2019
    
1,271,193
 
625,000
  
North Carolina Medical Care Commission, Health Care Facilities Revenue Bonds, 5.50% (Scotland Memorial Hospital)/(Radian Asset Assurance INS)/(Original Issue Yield: 5.593%), 10/1/2019
    
634,794
 
400,000
  
North Carolina Medical Care Commission, Health Care Housing Revenue Bonds (Series 2004A), 5.80% (Arc of North Carolina Projects), 10/1/2034
    
393,076
 
700,000
  
North Carolina Medical Care Commission, Health System Revenue Bonds, 5.00% (Mission Health, Inc.), 10/1/2036
    
693,665
 
1,000,000
  
North Carolina Medical Care Commission, Hospital Revenue Bonds (Series 2000), 5.50% (Northeast Medical Center)/(United States Treasury PRF 11/1/2010@101)/(Original Issue Yield: 5.74%), 11/1/2025
    
1,080,950
 
500,000
  
North Carolina Medical Care Commission, Hospital Revenue Bonds (Series 2002A), 5.375% (Southeastern Regional Medical Center)/(Original Issue Yield: 5.48%), 6/1/2032
    
498,330
 
1,000,000
  
North Carolina Medical Care Commission, Hospital Revenue Bonds, 6.125% (Southeastern Regional Medical Center)/(Original Issue Yield: 6.25%), 6/1/2019
    
1,031,540
 
685,000
  
North Carolina Medical Care Commission, Hospital Revenue Bonds, 5.50% (Maria Parham Medical Center)/(Radian Asset Assurance INS), 10/1/2018
    
710,550
 
250,000
  
North Carolina Medical Care Commission, Retirement Facilities First Mortgage Revenue Bonds (Series 2002), 6.25% (Forest at Duke)/(United States Treasury PRF 9/1/2012@100)/
(Original Issue Yield: 6.35%), 9/1/2021
    
278,635
 
500,000
  
North Carolina Medical Care Commission, Retirement Facilities First Mortgage Revenue Bonds (Series 2003A), 6.375% (Givens Estates )/(United States Treasury PRF 7/1/2013@101)/(Original Issue Yield: 6.50%), 7/1/2023
    
578,205
 
550,000
  
North Carolina Medical Care Commission, Retirement Facilities First Mortgage Revenue Bonds (Series 2004C), 6.00% (Cypress Glen)/(Original Issue Yield: 6.092%), 10/1/2033
    
529,193
 
500,000
  
North Carolina Medical Care Commission, Retirement Facilities First Mortgage Revenue Bonds (Series 2005A), 5.50% (United Methodist Retirement Homes)/(Original Issue Yield: 5.55%), 10/1/2035
    
472,325
 
500,000
  
North Carolina Medical Care Commission, Retirement Facilities First Mortgage Revenue Refunding Bonds (Series 2007), 5.00% (Givens Estates ), 7/1/2033
    
466,820
 
250,000
  
North Carolina Medical Care Commission, Retirement Facilities First Mortgage Revenue Refunding Bonds (Series 2007), 5.125% (Forest at Duke), 9/1/2032
    
237,505
 
500,000
  
North Carolina Medical Care Commission, Revenue Refunding Bonds (Series 2006B), 5.20% (Presbyterian Homes, Inc.), 10/1/2021
    
495,695
 
1,000,000
  
North Carolina Municipal Power Agency No. 1, Electric Revenue Bonds (Series 1999B), 6.50% (Original Issue Yield: 6.73%), 1/1/2020
    
1,048,500
 
500,000
  
North Carolina State, Grant Anticipation Revenue Vehicle Bonds (Series 2007), 5.00% (MBIA Insurance Corp. INS), 3/1/2019
    
540,310
 
1,000,000
  
Northern Hospital District of Surry County, NC, Health Care Facilities Revenue Refunding Bonds (Series 2001), 5.10% (Northern Hospital of Surry County)/(Radian Asset Assurance INS)/(Original Issue Yield: 5.242%), 10/1/2021
    
1,001,080
 
1,000,000
  
Onslow County, NC Hospital Authority, FHA Insured Mortgage Revenue Bonds, 5.00% (Onslow Memorial Hospital)/(GTD by FHA)/(MBIA Insurance Corp. INS), 10/1/2034
    
1,004,670
 
1,020,000
  
Onslow County, NC, School UT GO Bonds, 5.00%, 4/1/2021
    
1,092,614
 
1,200,000
  
Piedmont Triad Airport Authority, NC, Airport Revenue Bonds (Series 1999A), 5.875% (United States Treasury PRF 7/1/2009@101)/(Original Issue Yield: 6.02%), 7/1/2019
    
1,261,704
 
1,000,000
  
Pitt County, NC, COPs (Series 2000B), 5.50% (United States Treasury PRF 4/1/2010@101)/
(Original Issue Yield: 5.63%), 4/1/2025
    
1,066,580
 
1,000,000
  
Pitt County, NC, COPs, 5.00% (MBIA Insurance Corp. INS), 4/1/2025
    
1,028,710
 
500,000
  
Pitt County, NC, Refunding Bonds, 5.25% (Pitt County Memorial Hospital)/(Escrowed In Treasuries COL)/(Original Issue Yield: 5.85%), 12/1/2021
    
532,525
 
500,000
  
Raleigh & Durham, NC Airport Authority, Revenue Bonds (Series 2005A), 5.00% (AMBAC INS), 5/1/2030
    
501,430
 
500,000
  
Randolph County, NC, COPs (Series 2007), 5.00% (AMBAC INS), 2/1/2027
    
504,165
 
1,000,000
  
Randolph County, NC, COPs (Series 2000), 5.60% (United States Treasury PRF 6/1/2009@101)/(Original Issue Yield: 5.77%), 6/1/2018
    
1,045,260
 
1,000,000
  
Sampson County, NC, COPs, 4.50% (FSA INS), 6/1/2036
    
963,000
 
500,000
  
University of North Carolina System Pool, Revenue Bonds (Series 2006B), 4.25% (MBIA Insurance Corp. INS)/(Original Issue Yield: 4.38%), 10/1/2033
    
456,485
 
500,000
  
University of North Carolina Wilmington, COPs (Series 2008), 5.00% (Assured Guaranty Corp. INS), 6/1/2022
    
524,480
 
525,000
  
University of North Carolina Wilmington, COPs, 5.25% (FGIC INS), 6/1/2022
    
543,643
 
500,000
  
University of North Carolina at Chapel Hill, Revenue Bonds (Series 2007), 5.00%, 12/1/2036
    
516,810
 
250,000
  
Wilmington, NC Storm Water Fee, Revenue Bonds, 5.00% (AMBAC INS), 6/1/2033
    
255,823
 
500,000
  
Wilmington, NC Water & Sewer System, Revenue Bonds (Series 1999), 5.625% (United States Treasury PRF 6/1/2010@101)/(Original Issue Yield: 5.76%), 6/1/2018
    
537,065
     
TOTAL
    
44,504,592
     
Puerto Rico--2.7%
      
 
170,000
  
Puerto Rico Highway and Transportation Authority, Transportation Revenue Bonds (Series G), 5.00% (Original Issue Yield: 5.10%), 7/1/2033
    
164,563
 
330,000
  
Puerto Rico Highway and Transportation Authority, Transportation Revenue Bonds (Series G), 5.00% (United States Treasury PRF 7/1/2013@100)/(Original Issue Yield: 5.10%), 7/1/2033
    
360,423
 
395,000
  
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Cogeneration Facility Revenue Bonds (Series 2000A), 6.625% (AES Puerto Rico Project)/(Original Issue Yield: 6.65%), 6/1/2026
    
405,499
 
500,000
  
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds (Series 2006), 5.00% (Ana G. Mendez University System), 3/1/2036
    
437,645
     
TOTAL
    
1,368,130
     
Virgin Islands—0.9%
      
 
500,000
  
University of the Virgin Islands, UT GO Bonds (Series A), 5.375% (Original Issue Yield: 5.43%), 6/1/2034
    
480,720
     
TOTAL MUNICIPAL BONDS (IDENTIFIED COST $45,507,373)
    
46,353,442
     
SHORT-TERM MUNICIPALS --9.7%1
      
     
North Carolina--9.4%
      
 
2,500,000
  
Charlotte-Mecklenburg Hospital Authority, NC, (Series 2007L) Weekly VRDNs (Carolinas HealthCare System)/(AMBAC Assurance Corporation INS)/(Bayerische Landesbank LIQ), 5.250%, 5/1/2008
    
2,500,000
 
2,300,000
  
North Carolina Medical Care Commission, (Series 2001A) Weekly VRDNs (Moses H. Cone Memorial), 1.450%, 6/5/2008
    
2,300,000
     
TOTAL
    
4,800,000
     
Puerto Rico--0.3%
      
 
150,000
  
Puerto Rico Government Development Bank (GDB) Weekly VRDNs (MBIA Insurance Corp. INS)/(Credit Suisse, Zurich LIQ), 2.400%, 6/4/2008
    
150,000
     
TOTAL SHORT-TERM MUNICIPALS (AT AMORTIZED COST)
    
4,950,000
     
TOTAL MUNICIPAL INVESTMENTS --- 100.4%
(IDENTIFIED COST $50,457,373)2
    
51,303,442
     
OTHER ASSETS AND LIABILITIES --- NET --- (0.4)%3
    
(225,167)
     
TOTAL NET ASSETS --- 100%
  
$
51,078,275

 
Securities that are subject to the federal alternative minimum tax (AMT) represent 9.7% of the Fund’s portfolio as calculated based upon total market value.
1
Current rate and next reset date shown for Variable Rate Demand Notes.
2
At May 31, 2008, the cost of investments for federal tax purposes was $50,456,322.  The net unrealized appreciation of investments for federal tax purposes was $847,120.  This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $1,505,837 and net unrealized depreciation from investments for those securities having an excess of cost over value of $658,717.
3
Assets, other than investments in securities, less liabilities.

 
Note: The categories of investments are shown as a percentage of total net assets at May 31, 2008.
 
Investment Valuation
 
In calculating its net asset value (NAV), the Fund generally values investments as follows:
 
·  
Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board of Trustees (the “Trustees”).
 
·  
Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).
 
·  
Derivative contracts listed on exchanges are valued at their reported settlement or closing price
 
·  
Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.
 
·  
Shares of other mutual funds are valued based upon their reported NAVs.
 
If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund’s NAV.
 
 
Fair Valuation and Significant Events Procedures
 
The Trustees have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV. Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers, and general market conditions.  Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation).  Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a “mid” evaluation).  The Fund normally uses bid evaluations for U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities.  The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.
 
The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment’s value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:
 
·  
With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets;
 
·  
Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
 
·  
Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer’s operations or regulatory changes or market developments affecting the issuer’s industry.
 
The Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Trustees.
 

The following acronyms are used throughout this portfolio:
 
AMBAC
--American Municipal Bond Assurance Corporation
COL
--Collateralized
COPs
--Certificates of Participation
FGIC
--Financial Guaranty Insurance Company
FHA
--Federal Housing Administration
FNMA
--Federal National Mortgage Association
FSA
--Financial Security Assurance
GO
--General Obligation
GTD
--Guaranteed
HFA
--Housing Finance Authority
INS
--Insured
LIQ
--Liquidity Agreement
MFH
--Multi-Family Housing
PCFA
--Pollution Control Financing Authority
PRF
--Prerefunded
TOBs
--Tender Option Bonds
UT
--Unlimited Tax
VRDNs
--Variable Rate Demand Notes







Federated Ohio Municipal Income Fund
 
Portfolio of Investments
 
May 31, 2008 (unaudited)
 
 
Principal
Amount
        
Value
     
MUNICIPAL BONDS--96.2%
      
     
Ohio--93.1%
      
$
1,000,000
  
Akron, Bath & Copley, OH Joint Township, Hospital District Revenue Bonds (Series 2004A), 5.125% (Summa Health System)/(Radian Asset Assurance INS)/(Original Issue Yield: 5.38%), 11/15/2024
  
$
1,015,620
 
1,750,000
  
Akron, Bath & Copley, OH Joint Township, Hospital Facilities Revenue Bonds (Series 2004A), 5.25% (Summa Health System)/(Radian Asset Assurance INS)/(Original Issue Yield: 5.47%), 11/15/2031
    
1,759,468
 
1,000,000
  
Akron, OH, LT GO Bonds, 5.80% (United States Treasury PRF 11/1/2010@101)/(Original Issue Yield: 5.95%), 11/1/2020
    
1,088,200
 
300,000
  
Alliance, OH City School District, UT GO Bonds, 5.50% (United States Treasury PRF 12/1/2010@102)/(Original Issue Yield: 5.85%), 12/1/2022
    
327,927
 
395,000
  
Alliance, OH Waterworks, Revenue Refunding Bonds, 5.00% (MBIA Insurance Corp. INS)/
(Original Issue Yield: 5.20%), 11/15/2020
    
401,620
 
1,000,000
  
Bay Village, OH City School District, School Improvement UT GO Bonds, 5.125% (United States Treasury PRF 12/1/2010@100)/(Original Issue Yield: 5.16%), 12/1/2021
    
1,064,450
 
1,945,000
  
Buckeye Tobacco Settlement Financing Authority, OH, Tobacco Settlement Asset-Backed Bonds (Series 2007A), 6.50%, 6/1/2047
    
1,815,560
 
2,805,000
  
Butler County, OH, MFH Revenue Bonds (Series 2006), 5.10% (Trinity Manor Senior Housing )/(GNMA  Home Mortgage Program COL), 7/20/2036
    
2,668,200
 
1,000,000
  
Centerville, OH, Health Care Fixed Rate Revenue Bonds (Series 2007A), 6.00% (Bethany Lutheran Village), 11/1/2038
    
895,330
 
250,000
  
Clearview, OH Local School District, UT GO Bonds, 6.00% (United States Treasury PRF 12/1/2010@101)/(Original Issue Yield: 6.17%), 12/1/2024
    
266,835
 
2,200,000
  
Cleveland, OH Airport System, Revenue Bonds, 5.00% (FSA INS), 1/1/2022
    
2,290,266
 
1,000,000
  
Cleveland, OH Waterworks, Water Revenue Bonds (Series 2007O), 5.00% (MBIA Insurance Corp. INS), 1/1/2032
    
1,026,640
 
2,000,000
  
Cleveland, OH Waterworks, Water Revenue Bonds (Series 2007P), 5.00%, 1/1/2026
    
2,086,600
 
530,000
  
Cleveland-Cuyahoga County, OH Port Authority, Bond Fund Program Development Revenue Bonds (Series 2004E), 5.60% (Port of Cleveland Bond Fund), 5/15/2025
    
518,080
 
310,000
  
Cleveland-Cuyahoga County, OH Port Authority, Development Revenue Bonds (Series 2001B), 6.50% (Port of Cleveland Bond Fund), 11/15/2021
    
318,128
 
500,000
  
Cleveland-Cuyahoga County, OH Port Authority, Development Revenue Bonds (Series 2002C), 5.95% (Port of Cleveland Bond Fund), 5/15/2022
    
504,215
 
485,000
  
Cleveland-Cuyahoga County, OH Port Authority, Development Revenue Bonds (Series 2005B), 5.125% (Port of Cleveland Bond Fund), 5/15/2025
    
439,492
 
500,000
  
Cleveland-Cuyahoga County, OH Port Authority, Senior Housing Revenue Bonds (Series 2006A), 6.25% (St. Clarence-GEAC LLC), 5/1/2038
    
473,520
 
1,000,000
  
Cleveland-Cuyahoga County, OH Port Authority, Special Assessment Tax-Increment Revenue Bonds, 7.00% (University Heights, OH Public Parking Garage)/(Original Issue Yield: 7.20%), 12/1/2018
    
1,061,110
 
1,000,000
  
Columbus, OH City School District, School Facilities Construction & Improvement UT GO Bonds, 5.25% (United States Treasury PRF 12/1/2014@100)/(Original Issue Yield: 4.88%), 12/1/2024
    
1,115,580
 
1,610,000
  
Columbus, OH City School District, School Facilities Construction & Improvement UT GO Bonds, 5.00% (United States Treasury PRF 6/1/2013@100)/(Original Issue Yield: 4.70%), 12/1/2024
    
1,749,812
 
1,000,000
  
Delaware County, OH, Capital Facilities LT GO Bonds, 6.25% (United States Treasury PRF 12/1/2010@101)/(Original Issue Yield: 6.03%), 12/1/2020
    
1,101,010
 
1,000,000
  
Erie County, OH, Hospital Facilities Revenue Bonds (Series 2002A), 5.50% (Firelands Regional Medical Center)/(Original Issue Yield: 5.66%), 8/15/2022
    
1,022,140
 
1,000,000
  
Erie County, OH, Revenue Bonds (Series 2006A), 5.00% (Firelands Regional Medical Center), 8/15/2036
    
931,390
 
1,500,000
  
Franklin County, OH Health Care Facilities, Revenue Refunding Bonds, 5.50% (Ohio Presbyterian Retirement Services)/(Original Issue Yield: 5.69%), 7/1/2021
    
1,505,775
 
750,000
  
Franklin County, OH, Revenue Refunding Bonds, 5.75% (Capitol South Community Urban Redevelopment Corp.), 6/1/2011
    
764,670
 
1,000,000
  
Gallipolis, OH City School District, School Facilities Construction & Improvement UT GO Bonds, 5.00% (MBIA Insurance Corp. INS), 12/1/2030
    
1,019,150
 
250,000
  
Greene County, OH Sewer Systems, Revenue Bonds, 5.25% (United States Treasury PRF 12/1/2008@102)/(Original Issue Yield: 5.42%), 12/1/2025
    
259,123
 
1,000,000
  
Greene County, OH, University Housing Revenue Bonds (Series 2002A), 5.50% (Marauder Development LLC at Central State University)/(American Capital Access INS)/(Original Issue Yield: 5.65%), 9/1/2027
    
888,940
 
1,000,000
  
Greene County, OH, University Housing Revenue Bonds (Series 2002A), 5.375% (Marauder Development LLC at Central State University)/(American Capital Access INS)/(Original Issue Yield: 5.55%), 9/1/2022
    
919,900
 
1,530,000
  
Hamilton County, OH Hospital Facilities Authority, Revenue Bonds (Series 2004J), 5.25% (Cincinnati Children's Hospital Medical Center)/(FGIC INS), 5/15/2023
    
1,540,067
 
2,400,000
  
Hamilton County, OH Sewer System, Improvement Revenue Bonds (Series 2000A), 5.75% (Metropolitan Sewer District of Greater Cincinnati)/(United States Treasury PRF 6/1/2010@101)/(Original Issue Yield: 5.78%), 12/1/2025
    
2,582,760
 
1,000,000
  
Hamilton County, OH, EDRBs (Series 2006A), 5.00% (King Highland Community Urban Redevelopment Corp.)/(MBIA Insurance Corp. INS), 6/1/2033
    
1,011,170
 
1,595,000
  
Hamilton County, OH, Subordinated Sales Tax Revenue Bonds (Series B), 5.60% (United States Treasury PRF 12/1/2010@100)/(Original Issue Yield: 5.62%), 12/1/2032
    
1,702,615
 
405,000
  
Hamilton County, OH, Subordinated Sales Tax Revenue Bonds (Series B), 5.60% (AMBAC INS)/(Original Issue Yield: 5.62%), 12/1/2032
    
408,965
 
1,310,000
  
Hamilton, OH City School District, School Facilities Construction & Improvement UT GO Bonds, 5.00% (FSA INS), 12/1/2029
    
1,356,282
 
2,000,000
  
Hamilton, OH City School District, School Improvement UT GO Bonds (Series 1999A), 5.50% (United States Treasury PRF 12/1/2009@101)/(Original Issue Yield: 5.75%), 12/1/2024
    
2,117,620
 
1,000,000
  
Heath, OH City School District, School Improvement UT GO Bonds (Series A), 5.50% (United States Treasury PRF 12/1/2010@100)/(Original Issue Yield: 5.635%), 12/1/2027
    
1,073,500
 
2,000,000
  
Hilliard, OH School District, UT GO Bonds (Series 2006A), 5.00% (MBIA Insurance Corp. INS), 12/1/2027
    
2,074,300
 
1,010,000
  
Kent State University, OH, General Receipts Revenue Bonds, 6.00% (AMBAC INS)/(Original Issue Yield: 6.09%), 5/1/2024
    
1,060,692
 
1,500,000
  
Lake, OH Local School District, Stark County, UT GO Bonds, 5.75% (United States Treasury PRF 12/1/2010@100)/(Original Issue Yield: 5.90%), 12/1/2021
    
1,619,310
 
2,000,000
  
Licking Heights, OH Local School District, School Facilities Construction & Improvement UT GO Bonds (Series 2000A), 5.50% (United States Treasury PRF 12/1/2010@100)/(Original Issue Yield: 5.58%), 12/1/2024
    
2,147,000
 
2,070,000
  
Little Miami, OH Local School District, LT GO School Improvement Bonds (Series 2006), 5.25% (United States Treasury PRF 12/1/2016@100)/(Original Issue Yield: 4.54%), 12/1/2030
    
2,336,864
 
1,500,000
  
Lorain County, OH, Health Care Facilities Revenue Refunding Bonds (Series 1998A), 5.25% (Kendal at Oberlin)/(Original Issue Yield: 5.53%), 2/1/2021
    
1,500,660
 
1,000,000
  
Lorain County, OH, Hospital Revenue Bonds (Series 2006H), 5.00% (Catholic Healthcare Partners)/(Assured Guaranty Corp. INS), 2/1/2024
    
1,019,620
 
1,000,000
  
Lorain County, OH, Hospital Revenue Refunding & Improvement Bonds, 5.25% (Catholic Healthcare Partners)/(Original Issue Yield: 5.52%), 10/1/2033
    
1,006,860
 
1,500,000
  
Lucas County, OH, Health Care Facilities Refunding & Improvement Revenue Bonds (Series 2000A), 6.625% (Sunset Retirement Community, Inc.)/(Original Issue Yield: 6.75%), 8/15/2030
    
1,543,530
 
355,000
  
Mansfield City School District, OH, UT GO Bonds, 5.75% (United States Treasury PRF 6/1/2010@100)/(Original Issue Yield: 5.75%), 12/1/2021
    
378,643
 
1,000,000
  
Marysville, OH Wastewater Treatment System, Revenue Bonds (Series 2007), 4.75% (XL Capital Assurance Inc. INS), 12/1/2047
    
910,590
 
1,000,000
  
Miami County, OH, Hospital Facilities Revenue & Refunding Bonds (Series 2006), 5.25% (Upper Valley Medical Center, OH), 5/15/2021
    
997,180
 
1,000,000
  
Montgomery County, OH, MFH Revenue Bonds (Series 2005), 4.95% (Chevy Chase Apartments)/(GTD by FHLMC), 11/1/2035
    
963,600
 
1,415,000
  
Oak Hills, OH Local School District, UT GO Bonds, 5.00% (FSA INS), 12/1/2025
    
1,473,340
 
1,010,000
  
Ohio HFA, Residential Mortgage Revenue Bonds (Series 2002 A-1), 5.30% (GTD by GNMA Home Mortgage Program COL), 9/1/2022
    
1,018,545
 
2,000,000
  
Ohio State Higher Educational Facilities Commission, Higher Education Facility Revenue Bonds (Series 2006), 5.00% (Kenyon College, OH), 7/1/2041
    
1,987,100
 
1,000,000
  
Ohio State Higher Educational Facilities Commission, Higher Educational Facility Revenue Bonds, 5.125% (Oberlin College), 10/1/2024
    
1,031,260
 
1,875,000
  
Ohio State Higher Educational Facilities Commission, Hospital Revenue Bonds (Series 2007A), 5.25% (University Hospitals Health System, Inc.), 1/15/2046
    
1,761,206
 
1,000,000
  
Ohio State Higher Educational Facilities Commission, Revenue Bonds (Series 2002B), 5.50% (Case Western Reserve University, OH)/(United States Treasury PRF 10/1/2012@100)/(Original Issue Yield: 5.18%), 10/1/2022
    
1,100,040
 
1,510,000
  
Ohio State Higher Educational Facilities Commission, Revenue Bonds (Series 2006), 5.00% (University of Dayton)/(AMBAC INS), 12/1/2030
    
1,523,530
 
2,000,000
  
Ohio State Higher Educational Facilities Commission, Revenue Bonds, 5.00% (College of Wooster), 9/1/2020
    
2,075,320
 
1,500,000
  
Ohio State Higher Educational Facilities Commission, Revenue Bonds, 5.00% (John Carroll University, OH), 4/1/2032
    
1,493,685
 
1,000,000
  
Ohio State Higher Educational Facilities Commission, Revenue Bonds, 5.00% (Otterbein College)/(CIFG N.A. INS), 12/1/2035
    
979,510
 
1,000,000
  
Ohio State Higher Educational Facilities Commission, Revenue Bonds, 5.00% (University of Dayton)/(AMBAC INS), 12/1/2027
    
1,013,290
 
500,000
  
Ohio State Higher Educational Facilities Commission, Revenue Bonds, 5.50% (Baldwin-Wallace College), 12/1/2021
    
520,975
 
1,070,000
  
Ohio State Higher Educational Facilities Commission, Revenue Bonds, 5.50% (Baldwin-Wallace College)/(Original Issue Yield: 5.53%), 12/1/2023
    
1,109,793
 
610,000
  
Ohio State Higher Educational Facilities Commission, Revenue Bonds, 5.50% (Baldwin-Wallace College)/(Original Issue Yield: 5.61%), 12/1/2024
    
632,363
 
2,000,000
  
Ohio State Higher Educational Facilities Commission, Revenue Bonds, 5.85% (John Carroll University, OH)/(United States Treasury PRF 4/1/2009@102)/(Original Issue Yield: 6.05%), 4/1/2020
    
2,103,320
 
750,000
  
Ohio State Higher Educational Facilities Commission, Revenue Bonds, 5.00% (Mount Union College), 10/1/2031
    
741,803
 
1,000,000
  
Ohio State Higher Educational Facilities Commission, Revenue Refunding Bonds (Series 2008C), 5.00% (Case Western Reserve University, OH), 12/1/2029
    
1,012,830
 
2,000,000
  
Ohio State University, General Receipts Revenue Bonds (Series 2003B), 5.25%, 6/1/2023
    
2,118,840
 
2,000,000
  
Ohio State Water Development Authority, PCRBs, 5.10% (United States Treasury PRF 6/1/2012@100)/(Original Issue Yield: 5.10%), 12/1/2022
    
2,159,420
 
1,000,000
  
Ohio State Water Development Authority, Revenue Refunding Bonds (Series 2008), 5.00%, 6/1/2028
    
1,047,300
 
1,835,000
  
Otsego, OH Local School District, Construction & Improvement UT GO Bonds, 5.00% (United States Treasury PRF 12/1/2014@100)/(Original Issue Yield: 5.15%), 12/1/2028
    
2,020,408
 
1,000,000
  
Parma, OH, Hospital Improvement and Refunding Revenue Bonds, 5.375% (Parma Community General Hospital Association)/(United States Treasury PRF 11/1/2008@101)/
(Original Issue Yield: 5.45%), 11/1/2029
    
1,024,050
 
500,000
  
Port Authority for Columbiana County, OH, Solid Waste Facility Revenue Bonds (Series 2004A), 7.25% (Apex Environmental LLC)/(Original Issue Yield: 7.30%), 8/1/2034
    
491,475
 
1,000,000
  
Portage County, OH Board of County Hospital Trustees, Hospital Revenue Bonds (Series 1999), 5.75% (Robinson Memorial Hospital)/(AMBAC INS)/(Original Issue Yield: 5.90%), 11/15/2019
    
1,044,410
 
1,000,000
  
Ravenna, OH City School District, UT GO Bonds (Series 2006), 5.00% (FSA INS), 1/15/2031
    
1,026,130
 
1,500,000
  
Rickenbacker, OH Port Authority, Capital Funding Revenue Bonds (Series 2002A), 5.375% (OASBO Expanded Asset Pooled Financing Program)/(Original Issue Yield: 5.60%), 1/1/2032
    
1,581,615
 
1,000,000
  
Steubenville, OH, Hospital Facilities Revenue Refunding & Improvement Bonds, 6.375% (Trinity Health System Obligated Group)/(United States Treasury PRF 10/1/2010@100)/
(Original Issue Yield: 6.55%), 10/1/2020
    
1,089,030
 
500,000
  
Toledo-Lucas County, OH Port Authority, Revenue Bonds (Series 2004C), 6.375% (Northwest Ohio Bond Fund), 11/15/2032
    
500,505
 
820,000
  
Toledo-Lucas County, OH Port Authority, Revenue Bonds (Series 2005C), 5.125% (Northwest Ohio Bond Fund), 11/15/2025
    
741,764
 
1,500,000
  
Toledo-Lucas County, OH Port Authority, Revenue Bonds, 6.45% (CSX Corp.), 12/15/2021
    
1,613,940
 
1,375,000
  
Toledo-Lucas County, OH Port Authority, Special Assessment Revenue Bonds, 5.25% (Crocker Park Public Improvement Project)/(Original Issue Yield: 5.37%), 12/1/2023
    
1,345,053
 
2,000,000
  
Tuscarawas County, OH, Hospital Facilities Revenue Bonds, 5.75% (Union Hospital)/(Radian Asset Assurance INS), 10/1/2026
    
2,059,260
 
2,000,000
  
University of Akron, OH, General Receipts Bonds (Series 2008B), 5.25% (FSA INS), 1/1/2027
    
2,128,500
 
100,000
  
University of Cincinnati, OH, General Receipts Revenue Bond (Series AO), 5.75% (United States Treasury PRF 12/1/2009@101)/(Original Issue Yield: 5.90%), 6/1/2019
    
106,248
 
1,025,000
  
University of Cincinnati, OH, General Receipts Revenue Bonds (Series 2004D), 5.00% (AMBAC INS), 6/1/2026
    
1,045,213
 
1,000,000
  
Warrensville Heights, OH School District, UT GO Bonds, 5.75% (United States Treasury PRF 12/1/2010@101)/(Original Issue Yield: 5.83%), 12/1/2024
    
1,088,940
 
1,995,000
  
Waynesville, OH Health Care Facilities, Revenue Bonds (Series 2001A), 5.70% (Quaker Heights Project)/(GTD by GNMA  Home Mortgage Program COL), 2/20/2043
    
2,051,538
     
TOTAL
    
108,512,128
     
Puerto Rico--2.8%
      
 
1,000,000
  
Puerto Rico Government Development Bank (GDB), Senior Notes (Series 2006B), 5.00%, 12/1/2017
    
1,001,650
 
990,000
  
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Cogeneration Facility Revenue Bonds (Series 2000A), 6.625% (AES Puerto Rico Project)/(Original Issue Yield: 6.65%), 6/1/2026
    
1,016,314
 
470,000
  
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds (Series 2006), 5.00% (Ana G. Mendez University System), 3/1/2026
    
434,017
 
1,000,000
  
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds (Series 2006), 5.00% (Ana G. Mendez University System), 3/1/2036
    
875,290
     
TOTAL
    
3,327,271
     
Virgin Islands--0.3%
      
 
305,000
  
Virgin Islands HFA, SFM Revenue Refunding Bonds (Series A), 6.50% (GNMA COL)/(Original Issue Yield: 6.522%), 3/1/2025
    
305,156
     
TOTAL MUNICIPAL BONDS (IDENTIFIED COST $110,322,700)
    
112,144,555
     
SHORT-TERM MUNICIPALS --2.0%1
      
     
Ohio--0.1%
      
 
100,000
  
Lucas County, OH, (Series 1998) Weekly VRDNs (Maumee Valley Country Day School)/(Sky Bank LOC), 2.620%, 6/5/2008
    
100,000
     
Puerto Rico--1.9%
      
 
2,200,000
  
Puerto Rico Government Development Bank (GDB) Weekly VRDNs (MBIA Insurance Corp. INS)/(Credit Suisse, Zurich LIQ), 2.400%, 6/4/2008
    
2,200,000
     
TOTAL SHORT-TERM MUNICIPALS (AT AMORTIZED COST)
    
2,300,000
     
TOTAL MUNICIPAL INVESTMENTS --- 98.2%
(IDENTIFIED COST $112,622,700)2
    
114,444,555
     
OTHER ASSETS AND LIABILITIES --- NET --- 1.8%3
    
2,062,128
     
TOTAL NET ASSETS --- 100%
  
$
116,506,683

 
Securities that are subject to the federal alternative minimum tax (AMT) represent 7.1% of the Fund’s portfolio as calculated based upon total market value.
1
Current rate and next reset date shown for Variable Rate Demand Notes.
2
At May 31, 2008, the cost of investments for federal tax purposes was $112,619,903.  The net unrealized appreciation of investments for federal tax purposes was $1,824,652.  This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $3,615,587 and net unrealized depreciation from investments for those securities having an excess of cost over value of $1,790,935.
3
Assets, other than investments in securities, less liabilities.

 
Note: The categories of investments are shown as a percentage of total net assets at May 31, 2008.
 
Investment Valuation
 
In calculating its net asset value (NAV), the Fund generally values investments as follows:
 
·  
Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board of Trustees (the “Trustees”).
 
·  
Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).
 
·  
Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
 
·  
Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.
 
·  
Shares of other mutual funds are valued based upon their reported NAVs.
 
If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund’s NAV.
 
 
Fair Valuation and Significant Events Procedures
 
The Trustees have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV. Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers, and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.
 
The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment’s value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:
 
·  
With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets;
 
·  
Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
 
·  
Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer’s operations or regulatory changes or market developments affecting the issuer’s industry.
 
The Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Trustees.
 
The following acronyms are used throughout this portfolio:
 
AMBAC
--American Municipal Bond Assurance Corporation
COL
--Collateralized
EDRBs
--Economic Development Revenue Bonds
FGIC
--Financial Guaranty Insurance Company
FHLMC
--Federal Home Loan Mortgage Corporation
FSA
--Financial Security Assurance
GNMA
--Government National Mortgage Association
GO
--General Obligation
GTD
--Guaranteed
HFA
--Housing Finance Authority
INS
--Insured
LIQ
--Liquidity Agreement
LT
--Limited Tax
MFH
--Multi-Family Housing
PCRBs
--Pollution Control Revenue Bonds
PRF
--Prerefunded
SFM
--Single Family Mortgage
UT
--Unlimited Tax
VRDNs
--Variable Rate Demand Notes





Federated Pennsylvania Municipal Income Fund
 
Portfolio of Investments
 
May 31, 2008 (unaudited)
 
 
Principal
Amount
        
Value
     
MUNICIPAL BONDS--95.4%
      
     
Pennsylvania--95.1%
      
$
1,500,000
  
Allegheny County Redevelopment Authority, Tax Increment Bonds (Series 2000A), 6.30% (Waterfront Project)/(United States Treasury PRF 12/15/2010@101), 12/15/2018
  
$
1,643,595
 
4,250,000
  
Allegheny County, PA Airport Authority, Airport Revenue Refunding Bonds (Series 1999), 6.125% (Pittsburgh International Airport)/(FGIC INS), 1/1/2017
    
4,322,165
 
2,500,000
  
Allegheny County, PA HDA, Health System Revenue Bonds (Series 2000B), 9.25% (West Penn Allegheny Health System)/(United States Treasury PRF 11/15/2010@102)/(Original Issue Yield: 9.70%), 11/15/2030
    
2,940,625
 
2,315,000
  
Allegheny County, PA HDA, Health System Revenue Bonds (Series 2007A), 5.375% (West Penn Allegheny Health System), 11/15/2040
    
1,961,754
 
2,000,000
  
Allegheny County, PA HDA, Refunding Revenue Bonds (Series 1998A), 5.125% (Jefferson Regional Medical Center, PA)/(Original Issue Yield: 5.34%), 5/1/2023
    
1,972,240
 
2,000,000
  
Allegheny County, PA HDA, Revenue Bonds, 5.50% (Catholic Health East)/(Original Issue Yield: 5.60%), 11/15/2032
    
2,015,640
 
1,500,000
  
Allegheny County, PA HDA, Revenue Bonds, 5.375% (Ohio Valley General Hospital, PA)/
(Original Issue Yield: 5.50%), 1/1/2018
    
1,500,945
 
1,000,000
  
Allegheny County, PA Higher Education Building Authority, Revenue Bonds (Series 2002A), 5.95% (Chatham College)/(Original Issue Yield: 5.97%), 3/1/2032
    
1,009,580
 
1,000,000
  
Allegheny County, PA Higher Education Building Authority, Revenue Bonds (Series 2002B), 5.25% (Chatham College)/(Original Issue Yield: 5.35%), 11/15/2016
    
1,000,260
 
2,200,000
  
Allegheny County, PA Higher Education Building Authority, University Revenue Bonds (Series 2006A), 4.75% (Robert Morris University), 2/15/2026
    
1,950,696
 
250,000
  
Allegheny County, PA Higher Education Building Authority, University Revenue Bonds, 5.125% (Carnegie Mellon University)/(Original Issue Yield: 5.39%), 3/1/2032
    
254,200
 
1,000,000
1
Allegheny County, PA IDA, Cargo Facilities Lease Revenue Bonds (Series 1999), 6.625% (AFCO Cargo PIT LLC Project)/(Original Issue Yield: 6.75%), 9/1/2024
    
952,170
 
3,185,000
  
Allegheny County, PA IDA, Environmental Improvement Refunding Revenue Bonds (Series 1998), 5.50% (Marathon Oil Corp.), 12/1/2029
    
3,070,340
 
1,250,000
  
Allegheny County, PA IDA, Environmental Improvement Refunding Revenue Bonds (Series 1998), 5.60% (Marathon Oil Corp.), 9/1/2030
    
1,214,287
 
1,385,000
  
Allegheny County, PA IDA, Environmental Improvement Refunding Revenue Bonds (Series 2005), 5.50% (United States Steel Corp.), 11/1/2016
    
1,407,506
 
1,500,000
  
Allegheny County, PA IDA, Health Care Facilities Revenue Refunding Bonds (Series 1998), 5.75% (Presbyterian SeniorCare-Westminister Place Project), 1/1/2023
    
1,397,580
 
900,000
  
Allegheny County, PA IDA, Lease Revenue Bonds (Series 2001), 6.60% (Residential Resources Inc. Project)/(United States Treasury PRF 9/1/2011@100)/(Original Issue Yield: 6.75%), 9/1/2031
    
1,004,382
 
1,000,000
  
Allegheny County, PA IDA, Lease Revenue Bonds (Series 2006), 5.125% (Residential Resources Inc. Project), 9/1/2031
    
911,950
 
3,000,000
  
Allegheny County, PA Port Authority, Special Revenue Transportation Bonds (Series 1999), 6.00% (United States Treasury PRF 3/1/2009@101)/(Original Issue Yield: 6.05%), 3/1/2019
    
3,119,520
 
440,000
  
Allegheny County, PA Residential Finance Authority, SFM Revenue Bonds (Series 2001KK-1), 5.375% (GTD by GNMA Home Mortgage Program COL), 5/1/2022
    
443,089
 
320,000
  
Allegheny County, PA Residential Finance Authority, SFM Revenue Bonds (Series FF-1), 5.90% (GNMA Home Mortgage Program COL), 5/1/2020
    
325,094
 
100,000
  
Allegheny County, PA, UT GO Bonds (Series C-48), 4.90% (MBIA Insurance Corp. INS)/
(United States Treasury PRF 10/1/2009@100)/(Original Issue Yield: 5.03%), 10/1/2016
    
103,104
 
1,435,000
  
Allegheny County, PA, UT GO Bonds, 5.00% (Assured Guaranty Corp. INS), 12/1/2033
    
1,481,178
 
2,000,000
  
Bethlehem, PA Area Vocational-Technical School Authority, GTD Lease Revenue Bonds (Series 1999), 5.50% (Bethlehem Area Vocational-Technical School)/(United States Treasury PRF 9/1/2009@100)/(Original Issue Yield: 5.55%), 9/1/2020
    
2,084,560
 
3,000,000
  
Bradford County, PA IDA, Solid Waste Disposal Refunding Revenue Bonds (Series 2005A), 4.70% (International Paper Co.), 3/1/2019
    
2,640,870
 
1,300,000
  
Bucks County, PA IDA, Retirement Community Revenue Bonds (Series 2005A), 6.25% (Ann's Choice, Inc.), 1/1/2035
    
1,276,782
 
750,000
  
Bucks County, PA IDA, Revenue Bonds (Series 2002A), 6.00% (Pennswood Village)/(United States Treasury PRF 10/1/2012@101)/(Original Issue Yield: 6.12%), 10/1/2027
    
842,835
 
500,000
  
Bucks County, PA IDA, Revenue Bonds (Series 2002A), 6.00% (Pennswood Village)/(United States Treasury PRF 10/1/2012@101)/(Original Issue Yield: 6.16%), 10/1/2034
    
561,890
 
2,000,000
  
Bucks County, PA IDA, Revenue Bonds (Series 2007A), 5.00% (School Lane Charter School), 3/15/2037
    
1,698,320
 
500,000
  
Bucks County, PA Water & Sewer Authority, Revenue Bonds, 5.25% (Neshaminy Interceptor Sewer System)/(United States Treasury PRF 6/1/2009@100)/(Original Issue Yield: 5.30%), 6/1/2011
    
516,255
 
820,000
  
Carbon County, PA IDA, Refunding Revenue Bonds, 6.65% (Panther Creek Partners Project), 5/1/2010
    
836,343
 
1,055,000
  
Catasauqua, PA Area School District, UT GO Bonds, 5.00% (FSA INS), 2/15/2031
    
1,082,050
 
250,000
  
Center City District, PA, Refunding Revenue Bonds, 4.75% (AMBAC INS), 12/1/2025
    
254,477
 
2,000,000
  
Chester County, PA HEFA, Revenue Bonds (Series 2006), 5.00% (Devereux Foundation), 11/1/2031
    
1,909,640
 
200,000
  
Commonwealth of Pennsylvania, UT GO Bonds, 5.00% (MBIA Insurance Corp. INS), 6/1/2011
    
206,062
 
330,000
  
Conneaut, PA School District, UT GO Refunding Bonds, 4.90% (FSA INS)/(Original Issue Yield: 5.00%), 5/1/2009
    
337,930
 
1,000,000
  
Crawford County, PA Hospital Authority, Senior Living Facilities Revenue Bonds (Series 1999), 6.125% (Wesbury United Methodist Community Obligated Group)/(Original Issue Yield: 6.32%), 8/15/2019
    
982,430
 
1,250,000
  
Cumberland County, PA Municipal Authority, College Revenue Bonds (Series A), 5.50% (Dickinson College)/(United States Treasury PRF 11/1/2010@100)/(Original Issue Yield: 5.70%), 11/1/2025
    
1,339,700
 
1,000,000
  
Cumberland County, PA Municipal Authority, Retirement Community Revenue Bonds (Series 2002A), 7.125% (Wesley Affiliated Services, Inc. Obligated Group)/(United States Treasury PRF 1/1/2013@101)/(Original Issue Yield: 7.40%), 1/1/2025
    
1,162,470
 
3,500,000
  
Cumberland County, PA Municipal Authority, Revenue Bonds (Series 2007A), 5.00% (Diakon Lutheran Social Ministries), 1/1/2036
    
2,980,705
 
2,650,000
  
Delaware County, PA Authority, College Revenue Refunding Bonds (Series 1998A), 5.375% (Neumann College)/(Original Issue Yield: 5.48%), 10/1/2018
    
2,652,199
 
2,305,000
  
Delaware County, PA Authority, Revenue Bonds (Series 1999), 5.75% (Cabrini College)/
(United States Treasury PRF 7/1/2009@100)/(Original Issue Yield: 5.95%), 7/1/2019
    
2,396,601
 
750,000
  
Delaware County, PA, UT GO Bonds, 5.125%, 10/1/2010
    
776,287
 
1,000,000
  
Delaware River Joint Toll Bridge Commission, Pennsylvania-New Jersey Bridge System Revenue Bonds (Series 2003), 5.25% (United States Treasury PRF 7/1/2013@100), 7/1/2020
    
1,099,430
 
1,500,000
  
Delaware River Port Authority Revenue, Revenue Bonds (Series 1999), 6.00% (FSA INS), 1/1/2019
    
1,567,725
 
2,000,000
  
Delaware River Port Authority Revenue, Revenue Bonds, 6.00% (FSA INS), 1/1/2018
    
2,090,300
 
10,000,000
  
Delaware Valley, PA Regional Finance Authority, Local Government Revenue Bonds (Series 1997B), 5.60% (AMBAC INS), 7/1/2017
    
11,306,100
 
1,000,000
  
Delaware Valley, PA Regional Finance Authority, Local Government Revenue Bonds (Series 1998A), 5.50% (AMBAC INS), 8/1/2028
    
1,091,100
 
2,000,000
  
Delaware Valley, PA Regional Finance Authority, Revenue Bonds, 5.75%, 7/1/2017
    
2,284,020
 
4,100,000
  
Erie County, PA Hospital Authority, Health Facilities Revenue Bonds (Series 1999), 5.90% (St. Mary's Home of Erie)/(United States Treasury PRF 8/15/2009@100)/(Original Issue Yield: 6.05%), 8/15/2019
    
4,285,320
 
1,500,000
  
Erie County, PA Hospital Authority, Revenue Bonds (Series 2006), 5.00% (Hamot Health Foundation)/(CIFG Assurance NA INS), 11/1/2035
    
1,426,950
 
1,000,000
  
Erie County, PA Hospital Authority, Revenue Bonds (Series 2007), 5.00% (Hamot Health Foundation)/(CIFG Assurance NA INS), 11/1/2037
    
946,960
 
570,000
  
Erie, PA Higher Education Building Authority, College Revenue Refunding Bonds (Series 2004B), 5.00% (Mercyhurst College)/(Original Issue Yield: 5.11%), 3/15/2023
    
545,251
 
1,000,000
  
Erie, PA Higher Education Building Authority, Revenue Bonds (Series 2007 GG3), 5.00% (Gannon University)/(Radian Asset Assurance INS), 5/1/2032
    
972,760
 
3,825,000
1,2
Geisinger Authority, PA Health System, Drivers (Series 1834), 3.612% (Geisinger Health System), 2/1/2015
    
2,081,948
 
1,500,000
1
Harrisburg, PA Authority, University Revenue Bonds (Series 2006A), 5.40% (Harrisburg University of Science & Technology), 9/1/2016
    
1,489,035
 
2,000,000
  
Indiana County, PA IDA, Refunding Revenue Bonds, 5.00% (Indiana University of PA)/(AMBAC INS), 11/1/2029
    
2,006,460
 
500,000
  
Jim Thorpe Area School District, PA, UT GO Bonds (Series 1997AA), 5.30% (MBIA Insurance Corp. INS)/(Original Issue Yield: 5.45%), 3/15/2016
    
546,375
 
1,000,000
  
Lancaster County, PA Hospital Authority, Health Center Revenue Bonds (Series 2001), 5.875% (Willow Valley Retirement Communities)/(Original Issue Yield: 5.95%), 6/1/2031
    
1,013,390
 
1,000,000
  
Lancaster County, PA Hospital Authority, Revenue Bonds, 5.50% (Lancaster General Hospital)/(United States Treasury PRF 9/15/2013@100)/(Original Issue Yield: 5.63%), 3/15/2026
    
1,095,890
 
2,000,000
  
Lancaster County, PA, UT GO Bonds, (Series A), 5.80% (United States Treasury PRF 5/1/2010@100)/(Original Issue Yield: 5.84%), 5/1/2015
    
2,130,160
 
1,000,000
  
Lancaster, PA Higher Education Authority, College Revenue Bonds, 5.00% (Franklin & Marshall College), 4/15/2027
    
1,017,530
 
1,000,000
  
Lancaster, PA Higher Education Authority, College Revenue Bonds, 5.00% (Franklin & Marshall College), 4/15/2019
    
1,053,400
 
250,000
  
Lancaster, PA IDA, Revenue Bonds (Series 2000A), 7.60% (Garden Spot Village Project)/
(United States Treasury PRF 5/1/2010@101)/(Original Issue Yield: 7.70%), 5/1/2022
    
276,760
 
1,000,000
  
Lawrence County, PA IDA, Senior Health and Housing Facilities Revenue Bonds, 7.50% (Shenango Presbyterian SeniorCare Obligated Group)/(United States Treasury PRF 11/15/2011@102)/(Original Issue Yield: 7.75%), 11/15/2031
    
1,157,800
 
1,000,000
  
Lebanon County, PA Health Facilities Authority, Hospital Revenue Bonds, 5.80% (Good Samaritan Hospital)/(Original Issue Yield: 5.92%), 11/15/2022
    
1,014,520
 
2,000,000
  
Lehigh County, PA General Purpose Authority, Hospital Revenue Bonds, 5.25% (St. Lukes Hospital of Bethlehem)/(United States Treasury PRF 8/15/2013@100)/(Original Issue Yield: 5.42%), 8/15/2023
    
2,192,640
 
2,250,000
  
Lehigh County, PA General Purpose Authority, Revenue Bonds (Series 2005B), 5.00% (Lehigh Valley Health Network)/(FSA INS), 7/1/2035
    
2,241,630
 
1,000,000
  
Lehigh-Northampton Airport Authority, Revenue Bonds, 6.00% (Lehigh Valley Airport System)/(MBIA Insurance Corp. INS)/(Original Issue Yield: 6.02%), 5/15/2025
    
1,016,920
 
2,250,000
  
Lycoming County PA Authority, College Revenue Bonds (Series 2008), 5.50% (Pennsylvania College of Technology)/(Assured Guaranty Corp. INS), 10/1/2032
    
2,428,943
 
560,000
  
Lycoming County PA Authority, Hospital Lease Revenue Bonds (Series B), 6.50% (Divine Providence Hospital, PA)/(Original Issue Yield: 6.70%), 7/1/2022
    
559,978
 
1,000,000
  
Lycoming County PA Authority, Hospital Revenue Bonds, 5.50% (Divine Providence Hospital, PA)/(AMBAC INS)/(Original Issue Yield: 5.90%), 11/15/2022
    
1,001,450
 
1,000,000
  
McKean County, PA Hospital Authority, Hospital Revenue Bonds, 5.25% (Bradford Regional Medical Center)/(ACA Financial Guaranty Company INS), 10/1/2030
    
848,480
 
1,000,000
  
Monroe County, PA Hospital Authority, Hospital Revenue Bonds (Series 2002A), 5.50% (Pocono Medical Center)/(Radian Asset Assurance INS)/(Original Issue Yield: 5.60%), 1/1/2022
    
1,016,840
 
2,360,000
  
Monroe County, PA Hospital Authority, Hospital Revenue Bonds, 5.125% (Pocono Medical Center)/(United States Treasury PRF 7/1/2008@100)/(Original Issue Yield: 5.40%), 7/1/2015
    
2,366,372
 
1,000,000
  
Monroe County, PA Hospital Authority, Revenue Bonds, 6.00% (Pocono Medical Center)/(United States Treasury PRF 1/1/2014@100)/(Original Issue Yield: 6.17%), 1/1/2043
    
1,135,590
 
2,000,000
  
Montgomery County, PA Higher Education & Health Authority Hospital, Revenue Bonds (Series 2006FF1), 5.00% (Dickinson College)/(CIFG Assurance NA INS), 5/1/2031
    
1,991,800
 
1,250,000
  
Montgomery County, PA Higher Education & Health Authority Hospital, Revenue Bonds, 7.25% (Philadelphia Geriatric Center)/(United States Treasury PRF 12/1/2009@102)/(Original Issue Yield: 7.472%), 12/1/2024
    
1,359,175
 
1,000,000
  
Montgomery County, PA IDA, Fixed Rate Mortgage Revenue Bonds (Series 2005), 6.25% (Whitemarsh Continuing Care Retirement Community)/(Original Issue Yield: 6.375%), 2/1/2035
    
922,250
 
1,000,000
  
Montgomery County, PA IDA, Revenue Bonds (Series 2006A), 5.00% (Foulkeways at Gwynedd), 12/1/2030
    
896,700
 
1,000,000
  
Mount Lebanon, PA Hospital Authority, Revenue Bonds (Series 2002A), 5.625% (St. Clair Memorial Hospital)/(Original Issue Yield: 5.75%), 7/1/2032
    
1,007,370
 
1,000,000
  
New Wilmington, PA Municipal Authority, Revenue Bonds (Series 2007GG4), 5.125% (Westminster College)/(Radian Asset Assurance INS), 5/1/2033
    
944,240
 
1,000,000
  
North Hills, PA School District, GO Bonds, (Series 2000), 5.50% (United States Treasury PRF 7/15/2010@100)/(Original Issue Yield: 5.576%), 7/15/2024
    
1,065,560
 
150,000
  
North Penn, PA School District, UT GO Bonds, 4.50% (FSA INS)/(Original Issue Yield: 4.60%), 9/1/2010
    
153,804
 
1,000,000
  
Northumberland County PA IDA, Facilities Revenue Bonds (Series 2002B), 5.50% (NHS Youth Service, Inc.)/(ACA Financial Guaranty Company INS)/(Original Issue Yield: 5.80%), 2/15/2033
    
865,640
 
3,000,000
  
Norwin, PA School District, UT GO Bonds, 6.00% (United States Treasury PRF 4/1/2010@100)/(Original Issue Yield: 6.12%), 4/1/2024
    
3,196,650
 
1,000,000
  
Pennsylvania Convention Center Authority, Revenue Bonds, 6.70% (Escrowed In Treasuries COL)/(Original Issue Yield: 6.843%), 9/1/2016
    
1,156,090
 
1,000,000
  
Pennsylvania EDFA, Exempt Facilities Revenue Bonds (Series 1997B), 6.125% (National Gypsum Co.), 11/1/2027
    
860,470
 
900,000
  
Pennsylvania EDFA, Resource Recovery Revenue Bonds (Series A), 6.40% (Northampton Generating), 1/1/2009
    
896,247
 
2,000,000
  
Pennsylvania EDFA, Revenue Bonds (Series 1998A), 5.25% (Northwestern Human Services, Inc.)/(Original Issue Yield: 5.668%), 6/1/2028
    
1,696,620
 
1,000,000
  
Pennsylvania EDFA, Revenue Bonds (Series 2000), 5.90% (Dr. Gertrude A. Barber Center, Inc.)/(Radian Asset Assurance INS), 12/1/2030
    
1,015,340
 
1,000,000
  
Pennsylvania EDFA, Solid Waste Disposal Revenue Bonds (Series 2004A), 4.70% TOBs (Waste Management, Inc.), Mandatory Tender 11/1/2014
    
955,090
 
1,000,000
  
Pennsylvania EDFA, Solid Waste Disposal Revenue Bonds, Project A, 5.10% (Waste Management, Inc.), 10/1/2027
    
871,690
 
1,000,000
  
Pennsylvania HFA, SFM Revenue Bonds (Series 2001-72A), 5.25%, 4/1/2021
    
1,000,430
 
325,000
  
Pennsylvania HFA, SFM Revenue Bonds, (Series 62A), 5.50%, 10/1/2022
    
326,914
 
2,000,000
  
Pennsylvania HFA, SFM Revenue Bonds (Series 2006-92A), 4.75%, 4/1/2031
    
1,825,520
 
3,000,000
  
Pennsylvania HFA, SFM Revenue Bonds (Series 2006-95A), 4.90%, 10/1/2037
    
2,784,360
 
2,590,000
  
Pennsylvania State Higher Education Assistance Agency, Capital Acquisition Revenue Bonds, 6.125% (United States Treasury PRF 12/15/2010@100), 12/15/2019
    
2,822,064
 
1,020,000
  
Pennsylvania State Higher Education Facilities Authority, 5.125% (Gwynedd-Mercy College)/(Radian Asset Assurance INS), 5/1/2032
    
983,861
 
1,000,000
  
Pennsylvania State Higher Education Facilities Authority, College Revenue Bonds (Series 2007), 5.00% (Bryn Mawr College)/(AMBAC INS), 12/1/2037
    
1,007,930
 
2,000,000
  
Pennsylvania State Higher Education Facilities Authority, College and University Revenue Bonds, 5.625% (University of the Arts)/(Radian Asset Assurance INS)/(Original Issue Yield: 5.78%), 3/15/2025
    
2,019,300
 
1,500,000
  
Pennsylvania State Higher Education Facilities Authority, Revenue Bonds (Series 2001A), 6.00% (UPMC Health System)/(Original Issue Yield: 6.10%), 1/15/2022
    
1,597,155
 
1,330,000
  
Pennsylvania State Higher Education Facilities Authority, Revenue Bonds (Series 2003A), 5.25% (Clarion University Foundation, Inc.)/(XL Capital Assurance Inc. INS), 7/1/2018
    
1,374,542
 
1,490,000
  
Pennsylvania State Higher Education Facilities Authority, Revenue Bonds (Series 2003AA1), 5.25% (Dickinson College)/(Radian Asset Assurance INS), 11/1/2018
    
1,532,331
 
1,350,000
  
Pennsylvania State Higher Education Facilities Authority, Revenue Bonds (Series 2004A), 5.25% (Philadelphia University)/(Original Issue Yield: 5.32%), 6/1/2032
    
1,288,035
 
1,000,000
  
Pennsylvania State Higher Education Facilities Authority, Revenue Bonds (Series 2006-FF2), 5.00% (Elizabethtown College)/(Radian Asset Assurance INS), 12/15/2027
    
981,630
 
6,000,000
  
Pennsylvania State Higher Education Facilities Authority, Revenue Bonds (Series 2007A), 2.457% (Foundation for Indiana University of Pennsylvania )/(XL Capital Assurance Inc. INS), 7/1/2039
    
4,680,000
 
3,000,000
  
Pennsylvania State Higher Education Facilities Authority, Revenue Bonds (Series 2007A), 5.00% (Drexel University)/(MBIA Insurance Corp. INS), 5/1/2037
    
3,056,310
 
2,000,000
  
Pennsylvania State Higher Education Facilities Authority, Revenue Bonds (Series 2008), 5.00% (University of the Sciences in Philadelphia)/(Assured Guaranty Corp. INS), 11/1/2032
    
2,060,540
 
1,000,000
  
Pennsylvania State Higher Education Facilities Authority, Revenue Bonds (Series 2008), 6.00% (Edinboro University Foundation), 7/1/2042
    
1,006,700
 
1,160,000
  
Pennsylvania State Higher Education Facilities Authority, Revenue Bonds (Series AA2), 5.25% (Lycoming College)/(Radian Asset Assurance INS), 11/1/2024
    
1,172,632
 
1,250,000
  
Pennsylvania State Higher Education Facilities Authority, Revenue Bonds (Series EE-1), 5.00% (York College of Pennsylvania)/(XL Capital Assurance Inc. INS), 11/1/2033
    
1,242,825
 
1,000,000
  
Pennsylvania State Higher Education Facilities Authority, Revenue Bonds, 5.00% (Philadelphia University)/(Original Issue Yield: 5.22%), 6/1/2035
    
900,310
 
750,000
  
Pennsylvania State Higher Education Facilities Authority, Revenue Bonds, 5.00% (Widener University), 7/15/2039
    
685,020
 
1,000,000
  
Pennsylvania State Higher Education Facilities Authority, Revenue Bonds, 5.25% (Widener University)/(Original Issue Yield: 5.42%), 7/15/2024
    
1,000,830
 
3,150,000
  
Pennsylvania State Higher Education Facilities Authority, Revenue Bonds, 4.65% (Philadelphia College of Osteopathic Medicine)/(Original Issue Yield: 4.77%), 12/1/2028
    
3,025,228
 
450,000
  
Pennsylvania State Higher Education Facilities Authority, Revenue Bonds, 5.25% (Lycoming College)/(Radian Asset Assurance INS), 11/1/2027
    
453,393
 
2,495,000
  
Pennsylvania State Higher Education Facilities Authority, Revenue Bonds, 6.25% (Philadelphia University)/(United States Treasury PRF 6/1/2010@100), 6/1/2024
    
2,685,443
 
1,500,000
  
Pennsylvania State Higher Education Facilities Authority, Revenue Bonds, (Series A), 6.00% (UPMC Health System)/(Original Issue Yield: 6.16%), 1/15/2031
    
1,588,260
 
1,500,000
  
Pennsylvania State Higher Education Facilities Authority, Student Housing Revenue Bonds (Series 2003A), 5.00% (California University of Pennsylvania )/(ACA Financial Guaranty Company INS)/(Original Issue Yield: 5.08%), 7/1/2023
    
1,325,160
 
2,000,000
  
Pennsylvania State Higher Education Facilities Authority, Student Housing Revenue Bonds, 5.00% (Foundation for Indiana University of Pennsylvania )/(XL Capital Assurance Inc. INS), 7/1/2039
    
1,936,500
 
1,500,000
  
Pennsylvania State IDA, EDRBs (Series 2002), 5.50% (AMBAC INS), 7/1/2020
    
1,603,770
 
7,740,000
  
Pennsylvania State Turnpike Commission, Turnpike Revenue Bonds (Series 2006A), 5.00% (AMBAC INS), 12/1/2026
    
8,034,507
 
1,500,000
  
Pennsylvania State University, Revenue Bonds, 5.00%, 9/1/2029
    
1,544,940
 
1,000,000
  
Pennsylvania State University, Revenue Bonds, 5.00%, 9/1/2035
    
1,024,360
 
1,600,000
  
Philadelphia Authority for Industrial Development, Senior Living Revenue Bonds (Series 2005A), 5.625% (PresbyHomes Germantown/Morrisville), 7/1/2035
    
1,498,784
 
2,120,000
  
Philadelphia, PA Authority for Industrial Development, Lease Revenue Bonds (Series 2001B), 5.50% (United States Treasury PRF 10/1/2011@101), 10/1/2021
    
2,321,040
 
5,000,000
  
Philadelphia, PA Gas Works, Revenue Bonds (Seventh Series 1998 General Ordinance), 5.00% (AMBAC INS), 10/1/2037
    
4,999,650
 
980,000
  
Philadelphia, PA Redevelopment Authority, MFH Refunding Revenue Bonds (Series 1998), 5.45% (Woodstock Mutual Homes, Inc.)/(FHA INS)/(Original Issue Yield: 5.468%), 2/1/2023
    
980,951
 
1,250,000
  
Philadelphia, PA Redevelopment Authority, Revenue Bonds (Series 2003A), 5.50% (Beech Student Housing Complex)/(ACA Financial Guaranty Company INS), 7/1/2019
    
1,195,950
 
1,000,000
  
Philadelphia, PA Redevelopment Authority, Revenue Bonds (Series 2003A), 5.625% (Beech Student Housing Complex)/(ACA Financial Guaranty Company INS), 7/1/2023
    
935,750
 
1,000,000
  
Philadelphia, PA School District, UT GO Bonds (Series 2002B), 5.625% (United States Treasury PRF 8/1/2012@100), 8/1/2022
    
1,102,820
 
2,610,000
  
Philadelphia, PA Water & Wastewater System, Revenue Bonds (Series 2001A), 5.00% (United States Treasury PRF 11/1/2012@100)/(Original Issue Yield: 5.10%), 11/1/2031
    
2,825,273
 
500,000
  
Philadelphia, PA Water & Wastewater System, Revenue Refunding Bonds, 6.25% (MBIA Insurance Corp. INS), 8/1/2011
    
542,650
 
500,000
  
Philadelphia, PA Water & Wastewater System, Revenue Refunding Bonds, 6.25% (MBIA Insurance Corp. INS), 8/1/2012
    
552,170
 
2,000,000
  
Philadelphia, PA, Refunding UT GO Bonds (Series 2008A), 5.25% (FSA INS), 12/15/2032
    
2,095,660
 
6,500,000
  
Philadelphia, PA, UT GO Bonds, 5.00% (CIFG Assurance NA INS), 8/1/2026
    
6,377,865
 
50,000
  
Pittsburgh, PA Auditorium Authority, Regional Asset District Sales Tax Revenue Bonds (Series 1999), 5.00% (AMBAC INS), 2/1/2010
    
51,709
 
2,880,000
  
Pittsburgh, PA Public Parking Authority, Parking Revenue Bonds (Series 2000), 6.00% (United States Treasury PRF 6/1/2010@100)/(Original Issue Yield: 6.02%), 12/1/2020
    
3,085,834
 
355,000
  
Pittsburgh, PA Urban Redevelopment Authority, Mortgage Revenue Bonds (Series 1997C), 5.35%, 10/1/2009
    
362,675
 
1,075,000
  
Pittsburgh, PA Urban Redevelopment Authority, Mortgage Revenue Bonds (Series 1997C), 5.90%, 10/1/2022
    
1,083,632
 
1,285,000
  
Pittsburgh, PA Urban Redevelopment Authority, MFH Revenue Bonds (Series 2006), 4.90% (West Park Court)/(GNMA COL), 11/20/2047
    
1,135,876
 
1,000,000
  
Pittsburgh, PA Urban Redevelopment Authority, Revenue Bonds (Series 2006C), 4.80%, 4/1/2028
    
984,850
 
1,885,000
  
Pittsburgh, PA Water & Sewer Authority, Water & Sewer System Revenue Bonds, 5.00% (United States Treasury PRF 9/1/2015@100), 9/1/2024
    
2,085,357
 
3,000,000
  
Pittsburgh, PA Water & Sewer Authority, Water and Sewer System Revenue Bonds (Series 2008 D-1), 5.00% (FSA INS), 9/1/2025
    
3,152,100
 
2,855,000
  
Pittsburgh, PA, LT GO Bonds (Series 1999A), 5.75% (United States Treasury PRF 9/1/2009@100)/(Original Issue Yield: 5.852%), 9/1/2019
    
2,981,220
 
1,500,000
  
Pittsburgh, PA, UT GO Bonds (Series 1999A), 5.75% (United States Treasury PRF 9/1/2009@100)/(Original Issue Yield: 5.94%), 9/1/2024
    
1,566,315
 
3,000,000
  
Pittsburgh, PA, UT GO Bonds (Series 2001A), 5.50% (AMBAC INS), 9/1/2015
    
3,191,190
 
2,165,000
  
Radnor Township, PA, UT GO Bonds (Series 2004AA), 5.125%, 7/15/2027
    
2,241,554
 
2,040,000
  
Riverside, PA School District, UT GO Bonds, 5.50% (United States Treasury PRF 10/15/2010@100)/(Original Issue Yield: 5.57%), 10/15/2020
    
2,184,493
 
1,000,000
  
Saxonburg, PA Area Authority, Sewer & Water Revenue Bonds, 5.00% (Assured Guaranty Corp. INS), 3/1/2030
    
1,024,460
 
390,000
  
Sayre, PA, Health Care Facilities Authority, Revenue Bonds (Series 2002A), 5.75% (Guthrie Healthcare System, PA)/(Original Issue Yield: 5.90%), 12/1/2021
    
404,044
 
1,110,000
  
Sayre, PA, Health Care Facilities Authority, Revenue Bonds (Series 2002A), 5.75% (Guthrie Healthcare System, PA)/(United States Treasury PRF 12/1/2011@101)/(Original Issue Yield: 5.90%), 12/1/2021
    
1,222,188
 
225,000
  
Sayre, PA, Health Care Facilities Authority, Revenue Bonds (Series 2002A), 5.875% (Guthrie Healthcare System, PA)/(Original Issue Yield: 6.00%), 12/1/2031
    
230,483
 
775,000
  
Sayre, PA, Health Care Facilities Authority, Revenue Bonds (Series 2002A), 5.875% (Guthrie Healthcare System, PA)/(United States Treasury PRF 12/1/2011@101)/(Original Issue Yield: 6.00%), 12/1/2031
    
856,530
 
7,440,000
  
Scranton, PA Sewer Authority, Sewer Revenue Bonds, 5.00% (FSA INS), 12/1/2036
    
7,608,070
 
1,000,000
  
Scranton, PA, UT GO Bonds (Series 2001C), 7.10% (United States Treasury PRF 9/1/2011@100)/(Original Issue Yield: 7.35%), 9/1/2031
    
1,128,350
 
3,000,000
  
Scranton-Lackawanna, PA Health & Welfare Authority, Revenue Bonds, 5.00% (University of Scranton)/(XL Capital Assurance Inc. INS), 11/1/2037
    
2,862,210
 
1,295,000
  
Southcentral PA, General Authority, Hospital Revenue Bonds, 5.00% (Hanover Hospital, Inc.)/(Radian Asset Assurance INS), 12/1/2029
    
1,263,337
 
540,000
  
Southcentral PA, General Authority, Revenue Bonds, 5.625% (Wellspan Health Obligated Group)/(Escrowed In Treasuries COL), 5/15/2026
    
571,061
 
2,460,000
  
Southcentral PA, General Authority, Revenue Bonds, 5.625% (Wellspan Health Obligated Group)/(United States Treasury PRF 5/15/2011@101), 5/15/2026
    
2,684,869
 
500,000
  
St. Mary Hospital Authority, PA, Health System Revenue Bonds (Series 2004A), 5.00% (Catholic Health East)/(Original Issue Yield: 5.15%), 11/15/2021
    
504,380
 
1,000,000
  
St. Mary Hospital Authority, PA, Health System Revenue Bonds (Series 2004B), 5.375% (Catholic Health East)/(United States Treasury PRF 11/15/2014@100)/(Original Issue Yield: 5.42%), 11/15/2034
    
1,115,480
 
1,000,000
  
St. Mary Hospital Authority, PA, Health System Revenue Bonds (Series 2004B), 5.50% (Catholic Health East)/(United States Treasury PRF 11/15/2014@100), 11/15/2024
    
1,122,680
 
400,000
  
State Public School Building Authority, PA, Revenue Bonds, 4.90% (Garnet Valley School District Project)/(United States Treasury COL), 2/1/2010
    
417,148
 
2,000,000
  
State Public School Building Authority, PA, School Revenue Bonds, 5.00% (Haverford Twp, PA School District)/(XL Capital Assurance Inc. INS), 3/15/2027
    
1,933,620
 
2,000,000
  
State Public School Building Authority, PA, School Revenue Bonds, 5.00% (Haverford Twp, PA School District)/(XL Capital Assurance Inc. INS), 3/15/2029
    
1,917,500
 
1,000,000
1
Susquehanna, PA Area Regional Airport Authority, Airport Facilities Revenue Bonds (Series 1999), 5.50% (Aero Harrisburg)/(Original Issue Yield: 5.85%), 1/1/2024
    
872,270
 
1,245,000
  
Union County, PA Higher Educational Facilities Financing Authority, Revenue Bonds (Series 2002A), 5.25% (Bucknell University), 4/1/2021
    
1,316,675
 
1,665,000
  
Union County, PA Higher Educational Facilities Financing Authority, Revenue Bonds (Series 2002A), 5.25% (Bucknell University), 4/1/2022
    
1,760,854
 
1,250,000
  
Union County, PA Hospital Authority, Revenue Bonds, 5.25% (Evangelical Community Hospital)/(Radian Asset Assurance INS), 8/1/2024
    
1,262,225
 
550,000
  
Unity Township, PA Municipal Authority, Sewer Revenue Bonds, 5.00% (FSA INS), 12/1/2034
    
561,622
 
400,000
  
Washington County, PA Authority, Lease Revenue Bonds, 7.875% (Escrowed In Treasuries COL), 12/15/2018
    
536,020
 
745,000
  
Washington County, PA Redevelopment Authority, Redevelopment Bonds (Series 2006A), 5.45% (Victory Centre Project-Tanger Outlet Development ), 7/1/2035
    
644,194
 
1,885,000
  
West Shore, PA Area Hospital Authority, Revenue Bonds, 6.15% (Holy Spirit Hospital), 1/1/2020
    
1,942,926
 
1,000,000
  
West Shore, PA Area Hospital Authority, Revenue Bonds, 6.25% (Holy Spirit Hospital)/
(Original Issue Yield: 6.30%), 1/1/2032
    
1,017,550
 
730,000
  
West View, PA Municipal Authority, Special Obligation Bonds, 9.50% (Escrowed In Treasuries COL), 11/15/2014
    
909,354
 
1,000,000
  
Westmoreland County, PA IDA, Health Care Facility Revenue Bonds (Series 2000B), 8.00% (Redstone Presbyterian Seniorcare Obligated Group)/(United States Treasury PRF 11/15/2010@101)/(Original Issue Yield: 8.25%), 11/15/2023
    
1,130,740
 
1,500,000
  
Westmoreland County, PA IDA, Retirement Community Revenue Bonds (Series 2005A), 5.75% (Redstone Presbyterian Seniorcare Obligated Group), 1/1/2026
    
1,376,400
 
2,660,000
  
Westmoreland County, PA Municipal Authority, Municipal Service Refunding Revenue Bonds (Series 2006A), 5.00% (FSA INS), 8/15/2028
    
2,748,418
 
55,000
  
Westmoreland County, PA Municipal Authority, Special Obligation Bonds, 9.125% (Escrowed In Treasuries COL), 7/1/2010
    
57,993
 
3,000,000
  
Wilkes-Barre, PA Finance Authority, University Refunding Revenue Bonds (Series 2007), 5.00% (Wilkes University), 3/1/2037
    
2,673,540
     
TOTAL
    
293,486,428
     
Puerto Rico—0.3%
      
 
1,000,000
  
Children’s Trust, PR, Tobacco Settlement Asset-Backed Revenue Bonds, 6.00% (United States Treasury PRF 7/1/2010@100)/(Original Issue Yield: 6.077%), 7/1/2026
    
1,060,410
     
TOTAL MUNICIPAL BONDS
(IDENTIFIED COST $294,755,502)
    
294,546,838
     
SHORT-TERM MUNICIPALS—5.6%3
      
     
Pennsylvania—5.6%
      
 
3,620,000
  
Philadelphia, PA Authority for Industrial Development Daily VRDNs (Newcourtland Elder Services)/(PNC Bank, N.A. LOC), 1.300%, 6/2/2008
    
3,620,000
 
4,710,000
  
Philadelphia, PA Authority for Industrial Development, (Series 2007A) Daily VRDNs (Fox Chase Cancer Center)/(Citizens Bank of Pennsylvania LOC), 1.380%, 6/2/2008
    
4,710,000
 
2,750,000
  
Philadelphia, PA Hospitals & Higher Education Facilities Authority, (Series 2002-A) Daily VRDNs (Children’s Hospital of Philadelphia)/(GTD by JPMorgan Chase Bank, N.A. and WestLB AG LIQs), 1.380%, 6/2/2008
    
2,750,000
 
6,300,000
  
Philadelphia, PA Hospitals & Higher Education Facilities Authority, (Series 2002-B) Daily VRDNs (Children’s Hospital of Philadelphia)/(GTD by JPMorgan Chase Bank, N.A. and WestLB AG LIQs), 1.380%, 6/2/2008
    
6,300,000
     
TOTAL SHORT-TERM MUNICIPALS
(AT AMORTIZED COST)
    
17,380,000
     
TOTAL INVESTMENTS—101.0%
(IDENTIFIED COST $312,135,502)4
    
311,926,838
     
OTHER ASSETS AND LIABILITIES – NET—(1.0)% 5
    
(3,187,385)
     
TOTAL NET ASSETS—100%
  
$
308,739,453

 
At May 31, 2008, the Fund had the following open swap/rate lock contract:
 
Counterparty
Pay
Receive
Expiration Date
Notional
Amount
Value
 
Goldman Sachs & Co.
4.71%
10 Year MMD Rate
6/5/2008
$3,100,000
$(3,246,278)

 
Value of Swap/Rate Lock Contracts is included in “Other Assets and Liabilities-Net”.

 
Securities that are subject to the federal alterative minimum tax (AMT) represent 7.6% of the Fund’s portfolio as calculated based upon total market value.
 
1
Denotes a restricted security that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) is subject to a contractual restriction on public sales.  At May 31, 2008, these restricted securities amounted to $5,395,423, which represented 1.7% of total net assets.
2
Denotes a restricted security that may be resold without restriction to "qualified institutional buyers" as defined in Rule 144A under the Securities Act of 1933 and that the Fund has determined to be liquid under criteria established by the Fund's Board of Trustees (the “Trustees”). At May 31, 2008, these liquid restricted securities amounted to $2,081,948, which represented 0.7% of total net assets.
 
Additional information on restricted securities, excluding securities purchased under Rule 144A that have been deemed liquid by the Trustees, held at May 31, 2008, is as follows:
 
Security
  
Acquisition Date
  
Acquisition Cost
 
Allegheny County, PA IDA, Cargo Facilities Lease Revenue Bonds (Series 1999), 6.625% (AFCO Cargo PIT LLC Project)/(Original Issue Yield: 6.75%), 9/1/2024
  
9/23/1999
  
$987,752
 
Harrisburg, PA Authority, University Revenue Bonds (Series 2006A), 5.40% (Harrisburg University of Science & Technology), 9/1/2016
  
12/15/2006
  
$1,500,000
 
Susquehanna, PA Area Regional Airport Authority, Airport Facilities Revenue Bonds (Series 1999), 5.50% (Aero Harrisburg)/(Original Issue Yield: 5.85%), 1/1/2024
  
4/14/1999
  
$964,549
3
Current rate and next reset date shown for Variable Rate Demand Notes.
4
At May 31, 2008, the cost of investments for federal tax purposes was $312,135,502. The net unrealized depreciation of investments for federal tax purposes excluding any unrealized depreciation resulting from swap/rate lock contracts was $208,664. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $9,127,280 and net unrealized depreciation from investments for those securities having an excess of cost over value of $9,335,944.
5
Assets, other than investments in securities, less liabilities.


 
Note: The categories of investments are shown as a percentage of total net assets at May 31, 2008.
 

 
 
Investment Valuation
 
In calculating its net asset value (NAV), the Fund generally values investments as follows:
 
·  
Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Trustees.
 
·  
Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).
 
·  
Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
 
·  
Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.
 
·  
Shares of other mutual funds are valued based upon their reported NAVs.
 
If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund’s NAV.
 
 
Fair Valuation and Significant Events Procedures
 
The Trustees have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV. Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers, and general market conditions.  Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation).  Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a “mid” evaluation).  The Fund normally uses bid evaluations for U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities.  The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.
 
The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment’s value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:
 
·  
With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets;
 
·  
Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
 
·  
Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer’s operations or regulatory changes or market developments affecting the issuer’s industry.
 
The Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Trustees.
 
 
The following acronyms are used throughout this portfolio:
 
AMBAC
--American Municipal Bond Assurance Corporation
COL
--Collateralized
EDFA
--Economic Development Financing Authority
EDRBs
--Economic Development Revenue Bonds
FGIC
--Financial Guaranty Insurance Company
FHA
--Federal Housing Administration
FSA
--Financial Security Assurance
GNMA
--Government National Mortgage Association
GO
--General Obligation
GTD
--Guaranteed
HDA
--Hospital Development Authority
HEFA
--Health and Education Facilities Authority
HFA
--Housing Finance Authority
IDA
--Industrial Development Authority
INS
--Insured
LIQ(s)
--Liquidity Agreement(s)
LOC
--Letter of Credit
LT
--Limited Tax
MFH
--Multi-Family Housing
PRF
--Prerefunded
SFM
--Single Family Mortgage
TOBs
--Tender Option Bonds
UT
--Unlimited Tax
VRDNs
--Variable Rate Demand Notes



 

Item 2.                      Controls and Procedures

(a) The registrant’s Principal Executive Officer and Principal Financial Officer have concluded that the registrant’s disclosure controls and procedures (as defined in rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2) under the Act, based on their evaluation of these disclosure controls and procedures within 90 days of the filing date of this report on Form N-Q.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in rule 30a-3(d) under the Act) during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3.                      Exhibits






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
Federated Municipal Securities Income Trust
   
By
/S/ Richard A. Novak
 
Richard A. Novak
 
Principal Financial Officer
   
Date
July 22, 2008
   
   
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/ J. Christopher Donahue
 
J. Christopher Donahue
 
Principal Executive Officer
   
Date
July 21, 2008
   
   
By
/S/ Richard A. Novak
 
Richard A. Novak
 
Principal Financial Officer
   
Date
July 22, 2008