UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO
HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Mark F. Kemper, Esq.
UBS Global Asset Management
51 West 52nd Street
New York, NY 10019-6114
(Name and address of agent for service)
Copy to:
Jack W. Murphy,
Esq.
Dechert LLP
1775 I Street, N.W.
Washington, DC 20006-2401
Registrants telephone number, including area code: 212-882 5000
Date of fiscal year end: September 30
Date of reporting period: June 30, 2006
Item 1. Schedule of Investments |
Investment Grade Municipal Income Fund Inc.
SCHEDULE OF INVESTMENTS June 30, 2006 (unaudited)
Principal | |||||||||||||||||
Amount | Moodys | S&P | Maturity | Interest | |||||||||||||
(000) ($) | Rating | Rating | Dates | Rates (%) | Value ($) | ||||||||||||
Long-Term Municipal Bonds163.83% | |||||||||||||||||
Alaska2.01% | |||||||||||||||||
1,000 | Alaska International Airports Revenues Refunding-Series A (MBIA Insured) |
Aaa | AAA | 10/01/19 | 5.000 | 1,028,210 | |||||||||||
1,000 | Alaska International Airports Revenues Refunding-Series A (MBIA Insured) |
Aaa | AAA | 10/01/20 | 5.000 | 1,024,110 | |||||||||||
1,000 | Alaska International Airports Revenues Refunding-Series A (MBIA Insured) |
Aaa | AAA | 10/01/21 | 5.000 | 1,021,660 | |||||||||||
3,073,980 | |||||||||||||||||
Arizona1.64% | |||||||||||||||||
2,380 | Arizona State Transportation Board Highway Revenue-Series B |
Aa1 | AAA | 07/01/18 | 5.250 | 2,510,091 | |||||||||||
Arkansas1.02% | |||||||||||||||||
1,525 | Little Rock Capital Improvement Revenue Parks & Recreation Projects-Series A |
NR | NR | 01/01/18 | 5.700 | 1,561,859 | |||||||||||
California34.00% | |||||||||||||||||
5,000 | California Educational Facilities Authority Revenue Refunding-Pepperdine University-Series A (FGIC Insured) |
Aaa | AAA | 09/01/33 | 5.000 | 5,081,900 | |||||||||||
5,000 | California Health Facilities Financing Authority Revenue-Kaiser Permanente-Series A |
NR | A+ | 04/01/39 | 5.250 | 5,102,900 | |||||||||||
3,000 | California Statewide Communities Development Authority Apartment Development Revenue Refunding-Irvine Apartment Communities-Series A-3 (Mandatory Put 05/17/10 @ 100) |
Baa2 | BBB | 05/15/25 | 5.100 | | 3,066,810 | ||||||||||
1,750 | California Statewide Communities Development Authority Revenue-Kaiser Permanente-Series H (Mandatory Put 05/01/08 @ 100) |
NR | A+ | 04/01/34 | 2.625 | | 1,693,563 | ||||||||||
2,150 | Fontana Redevelopment Agency Tax Allocation Refunding-Jurupa Hills Redevelopment Project A |
NR | A- | 10/01/17 | 5.500 | 2,223,250 | |||||||||||
2,905 | Inglewood Unified School District 1998 Election-Series C (FSA Insured) |
Aaa | AAA | 10/01/28 | 5.000 | 2,963,187 | |||||||||||
2,390 | Los Angeles County Sanitation Districts Financing Authority Revenue Capital Projects-District No. 14-Subseries B (FGIC Insured) |
NR | AAA | 10/01/28 | 5.000 | 2,448,531 | |||||||||||
6,250 | Los Angeles Wastewater System Revenue Refunding-Series A (FSA Insured) |
Aaa | AAA | 06/01/32 | 5.000 | 6,355,750 | |||||||||||
5,000 | Los Angeles Water & Power Revenue Power System-Series A, Subseries A-2 (MBIA Insured) |
Aaa | AAA | 07/01/27 | 5.000 | 5,106,550 | |||||||||||
10,000 | Sacramento County Sanitation District Financing Authority Revenue Refunding (AMBAC Insured) |
Aaa | AAA | 12/01/27 | 5.000 | 10,156,300 | |||||||||||
2,600 | San
Diego County Regional Airport Authority Airport Revenue Refunding |
Aaa | AAA | 07/01/16 | 5.250 | 2,749,240 | |||||||||||
5,000 | University of California Revenues-Series A (AMBAC Insured)# |
Aaa | AAA | 05/15/28 | 5.000 | 5,101,700 | |||||||||||
52,049,681 | |||||||||||||||||
Investment Grade Municipal Income Fund Inc.
SCHEDULE OF INVESTMENTS June 30, 2006 (unaudited)
Principal | |||||||||||||||||
Amount | Moodys | S&P | Maturity | Interest | |||||||||||||
(000) ($) | Rating | Rating | Dates | Rates (%) | Value ($) | ||||||||||||
Long-Term Municipal Bonds(continued) | |||||||||||||||||
Colorado1.00% | |||||||||||||||||
1,452 | University of Colorado Participation Interests |
NR | A+ | 12/01/13 | 6.000 | 1,523,381 | |||||||||||
Florida6.22% | |||||||||||||||||
3,350 | Florida State Board of Education Capital Outlay-Series E (FGIC Insured) |
Aaa | AAA | 06/01/24 | 5.000 | 3,425,743 | |||||||||||
1,175 | Gainesville Utilities System Revenue-Series A |
Aa2 | AA | 10/01/20 | 5.250 | 1,247,780 | |||||||||||
2,000 | Miami-Dade County Aviation Revenue Refunding-Miami International Airport-Series B (XLCA Insured) |
Aaa | AAA | 10/01/13 | 5.000 | 2,078,100 | |||||||||||
2,700 | Miami-Dade County Aviation Revenue Refunding-Miami International Airport-Series B (XLCA Insured) |
Aaa | AAA | 10/01/18 | 5.000 | 2,778,408 | |||||||||||
9,530,031 | |||||||||||||||||
Illinois0.98% | |||||||||||||||||
1,200 | Illinois Educational Facilities Authority Revenues Refunding-Augustana College-Series A |
Baa1 | NR | 10/01/22 | 5.625 | 1,245,288 | |||||||||||
250 | Metropolitan Pier & Exposition Authority Dedicated State Tax Revenue |
A1 | NR | 06/15/27 | 6.500 | 250,475 | |||||||||||
1,495,763 | |||||||||||||||||
Indiana4.68% | |||||||||||||||||
4,480 | Indiana Health Facility Financing Authority Revenue Ascension Health Subordinated Credit-A |
Aa3 | AA- | 04/01/10 | 5.000 | 4,616,282 | |||||||||||
2,500 | Indianapolis Airport Authority Revenue Refunding-Special Facilities-FedEx Corp. Project (Federal Express Co. Insured) |
Baa2 | BBB | 01/15/17 | 5.100 | 2,550,625 | |||||||||||
7,166,907 | |||||||||||||||||
Kentucky1.35% | |||||||||||||||||
2,055 | Boone County Pollution Control Revenue Refunding-Dayton Power & Light Co.-Series A |
Baa1 | BBB- | 11/15/22 | 6.500 | 2,072,755 | |||||||||||
Massachusetts7.36% | |||||||||||||||||
5,000 | Massachusetts Health & Educational Facilities Authority Revenue-Harvard University-Series B |
Aaa | AAA | 07/15/32 | 5.000 | 5,139,050 | |||||||||||
6,000 | Massachusetts Health & Educational Facilities Authority Revenue-Harvard University-Series DD |
Aaa | AAA | 07/15/35 | 5.000 | 6,133,860 | |||||||||||
11,272,910 | |||||||||||||||||
Michigan4.71% | |||||||||||||||||
2,055 | Michigan State Hospital Finance Authority Revenue Ascension Health Subordinated Credit-A |
Aa3 | AA- | 05/01/12 | 5.000 | 2,134,138 | |||||||||||
5,000 | Michigan State Hospital Finance Authority Revenue Refunding-Trinity Health Credit-Series D |
Aa3 | AA- | 08/15/25 | 5.000 | 5,072,900 | |||||||||||
7,207,038 | |||||||||||||||||
Minnesota1.00% | |||||||||||||||||
1,500 | Shakopee Health Care Facilities Revenue-Saint Francis Regional Medical Center |
NR | BBB | 09/01/17 | 5.000 | 1,526,370 | |||||||||||
Investment Grade Municipal Income Fund Inc.
SCHEDULE OF INVESTMENTS June 30, 2006 (unaudited)
Principal | |||||||||||||||||
Amount | Moodys | S&P | Maturity | Interest | |||||||||||||
(000) ($) | Rating | Rating | Dates | Rates (%) | Value ($) | ||||||||||||
Long-Term Municipal Bonds(continued) | |||||||||||||||||
Nevada4.48% | |||||||||||||||||
6,750 | Clark County Pollution Control Revenue Refunding-Nevada Power Co. Project-Series B (FGIC Insured) |
Aaa | AAA | 06/01/19 | 6.600 | 6,861,510 | |||||||||||
New Jersey16.17% | |||||||||||||||||
10,000 | New Jersey State Educational Facilities Authority Revenue-Princeton University-Series D |
Aaa | AAA | 07/01/29 | 5.000 | 10,299,000 | |||||||||||
10,000 | New Jersey Transportation Trust Fund Authority Transportation System-Series A |
A1 | AA- | 12/15/20 | 5.250 | 10,637,100 | |||||||||||
3,500 | New Jersey Transportation Trust Fund Authority Transportation System-Series A |
A1 | AA- | 12/15/21 | 5.500 | 3,817,240 | |||||||||||
24,753,340 | |||||||||||||||||
New York26.26% | |||||||||||||||||
4,030 | Long Island Power Authority Electric System Revenue-Series C |
A3 | A- | 09/01/17 | 5.500 | 4,279,417 | |||||||||||
1,765 | Metropolitan Transportation Authority New York Dedicated Tax Fund-Series A (FSA Insured) |
Aaa | AAA | 11/15/24 | 5.250 | 1,861,157 | |||||||||||
2,500 | New York City General Obligation-Series G |
A1 | A+ | 08/01/13 | 5.000 | 2,611,725 | |||||||||||
4,815 | New York City General Obligation-Series O |
A1 | A+ | 06/01/24 | 5.000 | 4,880,532 | |||||||||||
2,000 | New York City Industrial Development Agency Special Facilities Revenue-Terminal One Group Association Project |
A3 | BBB+ | 01/01/15 | 5.500 | 2,111,080 | |||||||||||
2,750 | New York City Industrial Development Agency Special Facilities Revenue-Terminal One Group Association Project |
A3 | BBB+ | 01/01/17 | 5.500 | | 2,897,648 | ||||||||||
3,250 | New York City Industrial Development Agency Special Facilities Revenue-Terminal One Group Association Project |
A3 | BBB+ | 01/01/18 | 5.500 | | 3,406,813 | ||||||||||
8,000 | New York City Municipal Water Finance Authority Water & Sewer System Revenue-Series C (MBIA Insured) |
Aaa | AAA | 06/15/27 | 5.000 | 8,208,960 | |||||||||||
3,140 | Triborough Bridge & Tunnel Authority Revenues Refunding-Series B |
Aa2 | AA- | 11/15/19 | 5.250 | 3,331,571 | |||||||||||
6,400 | Triborough Bridge & Tunnel Authority Revenues-Subordinate Bonds |
Aa3 | A+ | 11/15/30 | 5.250 | 6,620,928 | |||||||||||
40,209,831 | |||||||||||||||||
North Carolina12.41% | |||||||||||||||||
5,000 | North Carolina Eastern Municipal Power Agency Power System Revenue Refunding-Series A |
Baa2 | BBB | 01/01/11 | 5.500 | 5,259,950 | |||||||||||
2,000 | North Carolina Eastern Municipal Power Agency Power System Revenue Refunding-Series A |
Baa2 | BBB | 01/01/12 | 5.500 | 2,120,520 | |||||||||||
3,065 | North Carolina Eastern Municipal Power Agency Power System Revenue-Series A (Escrowed to Maturity) |
Baa2 | AAA | 01/01/21 | 6.400 | 3,631,136 | |||||||||||
8,745 | North Carolina State Public Improvement-Series A |
Aa1 | AAA | 03/01/24 | 4.000 | 7,992,580 | |||||||||||
19,004,186 | |||||||||||||||||
Ohio6.91% | |||||||||||||||||
2,185 | Ohio State Higher Education-Series B |
Aa1 | AA+ | 11/01/17 | 5.250 | 2,310,091 | |||||||||||
Investment Grade Municipal Income Fund Inc.
SCHEDULE OF INVESTMENTS June 30, 2006 (unaudited)
Principal | |||||||||||||||||
Amount | Moodys | S&P | Maturity | Interest | |||||||||||||
(000) ($) | Rating | Rating | Dates | Rates (%) | Value ($) | ||||||||||||
Long-Term Municipal Bonds(continued) | |||||||||||||||||
Ohio(concluded) | |||||||||||||||||
8,000 | Ohio State Water Development Authority Water Pollution Control Revenue-Water Quality |
Aaa | AAA | 06/01/24 | 5.000 | 8,263,680 | |||||||||||
10,573,771 | |||||||||||||||||
Pennsylvania10.14% | |||||||||||||||||
7,125 | Allegheny County Sanitation Authority Sewer Revenue Refunding-Series A (MBIA Insured) |
Aaa | AAA | 12/01/24 | 5.000 | 7,324,144 | |||||||||||
5,000 | Northumberland County Authority-Guaranteed Lease Revenue-Mountain View Manor Project |
NR | NR | 10/01/20 | 7.000 | 5,188,400 | |||||||||||
3,000 | Susquehanna
Area Regional Airport Authority Airport System |
Baa2 | NR | 01/01/18 | 5.375 | 3,013,860 | |||||||||||
15,526,404 | |||||||||||||||||
Puerto Rico2.02% | |||||||||||||||||
3,000 | Puerto Rico Housing Finance Authority-Capital Funding Program (HUD Insured) |
Aa3 | AA | 12/01/18 | 5.000 | 3,087,900 | |||||||||||
Rhode Island1.17% | |||||||||||||||||
1,600 | Rhode Island Health & Educational Building Corp. Revenue Refunding-Hospital Financing-Lifespan Obligation-Series A |
A3 | A- | 05/15/11 | 5.000 | 1,652,896 | |||||||||||
145 | Rhode Island Housing & Mortgage Finance Corp. Homeownership Opportunity-Series 10-A |
Aa2 | AA+ | 04/01/27 | 6.500 | 145,161 | |||||||||||
1,798,057 | |||||||||||||||||
South Carolina0.70% | |||||||||||||||||
1,000 | Greenville Waterworks Revenue |
Aa1 | AAA | 02/01/20 | 5.250 | 1,065,750 | |||||||||||
South Dakota0.74% | |||||||||||||||||
1,120 | Standing Rock New Public Housing** |
NR | NR | 08/07/13 | 6.000 | 1,135,524 | |||||||||||
Tennessee1.67% | |||||||||||||||||
2,500 | Memphis-Shelby County Airport Authority Special Facilities Revenue Refunding-Federal Express Corp. |
Baa2 | BBB | 09/01/09 | 5.000 | 2,551,200 | |||||||||||
Texas15.19% | |||||||||||||||||
6,665 | Austin Water & Wastewater System Revenue Refunding (MBIA Insured) |
Aaa | AAA | 05/15/28 | 5.000 | 6,789,502 | |||||||||||
4,000 | Coastal Bend Health Facilities Development Corp.-Incarnate Word Health System-Series A (Escrowed to Maturity) (AMBAC Insured) |
Aaa | AAA | 01/01/17 | 6.300 | 4,418,160 | |||||||||||
210 | Eagle Mountain & Saginaw Independent School District-School Building-Unrefunded Balance (PSF-GTD) |
Aaa | AAA | 08/15/14 | 5.375 | 222,951 | |||||||||||
6,576 | Harris County Texas Lease |
NR | NR | 05/01/20 | 6.750 | 6,908,839 | |||||||||||
Investment Grade Municipal Income Fund Inc.
SCHEDULE OF INVESTMENTS June 30, 2006 (unaudited)
Principal | |||||||||||||||||
Amount | Moodys | S&P | Maturity | Interest | |||||||||||||
(000) ($) | Rating | Rating | Dates | Rates (%) | Value ($) | ||||||||||||
Long-Term Municipal Bonds(concluded) | |||||||||||||||||
Texas(concluded) | |||||||||||||||||
3,007 | Houston Community College System Participation Interests |
NR | NR | 06/15/25 | 7.875 | 3,357,632 | |||||||||||
1,485 | Lower Colorado River Authority Transmission Contract Revenue-LCRA Transmission Services Corp. Project B (FSA Insured) |
Aaa | AAA | 05/15/20 | 5.250 | 1,552,048 | |||||||||||
23,249,132 | |||||||||||||||||
Total Long-Term Municipal Bonds (cost$251,492,013) | 250,807,371 | ||||||||||||||||
Short-Term Municipal Notes2.12% | |||||||||||||||||
Illinois0.88% | |||||||||||||||||
1,345 | Chicago Board of Education-Dedicated Revenues-Series D-2 (CIFG Insured) |
VMIG-1 | A-1+ | 07/03/06 | 3.970 | * | 1,345,000 | ||||||||||
Tennessee1.24% | |||||||||||||||||
1,900 | Clarksville Public Building Authority Revenue Pooled Financing |
VMIG-1 | NR | 07/03/06 | 3.990 | * | 1,900,000 | ||||||||||
Total Short-Term Municipal Notes (cost$3,245,000) | 3,245,000 | ||||||||||||||||
Tax Exempt Commercial Paper2.02% | |||||||||||||||||
Texas2.02% | |||||||||||||||||
2,000 | Harris County |
08/04/06 | 3.550 | 2,000,000 | |||||||||||||
1,100 | Harris County-Series B |
08/04/06 | 3.570 | 1,100,000 | |||||||||||||
Total Tax Exempt Commercial Paper (cost$3,100,000) | 3,100,000 | ||||||||||||||||
Total Investments (cost$257,837,013)(1)(2)167.97% | 257,152,371 | ||||||||||||||||
Other assets in excess of liabilities3.88% | 5,940,418 | ||||||||||||||||
Liquidation value of auction preferred shares(71.85)% | (110,000,000 | ) | |||||||||||||||
Net Assets applicable to common shareholders100.00% | 153,092,789 | ||||||||||||||||
Acquisition | Market | |||||||||||
Cost as a | Value as a | |||||||||||
Percentage | Percentage | |||||||||||
Illiquid and | Acquisition | Acquisition | of Common | Market | of Common | |||||||
Restricted Security | Date | Cost ($) | Net Assets (%) | Value ($) | Net Assets (%) | |||||||
Standing Rock New Public Housing, 6.000%, 08/07/13 |
08/08/02 | 1,120,487 | 0.73 | 1,135,524 | 0.74 | |||||||
| The securities detailed in the table below are considered illiquid and restricted and represent 6.71% of net assets applicable to common shareholders as of June 30, 2006. |
Acquisition | Market | |||||||||||
Cost as a | Value as a | |||||||||||
Percentage | Percentage | |||||||||||
Illiquid and | Acquisition | Acquisition | of Common | Market | of Common | |||||||
Restricted Securities | Date | Cost ($) | Net Assets (%) | Value ($) | Net Assets (%) | |||||||
Harris County Texas Lease, 6.750%, 05/01/20 | 09/07/00 | 6,575,839 | 4.30 | 6,908,839 | 4.51 | |||||||
Houston Community
College System Participation Interests, 7.875%, 06/15/25 |
04/22/02 | 3,007,095 | 1.96 | 3,357,632 | 2.20 | |||||||
9,582,934 | 6.26 | 10,266,471 | 6.71 | |||||||||
AMBAC | - American Municipal Bond Assurance Corporation | |
CIFG | - CDC IXIS Financial Guaranty | |
FGIC | - Financial Guaranty Insurance Company | |
FSA | - Financial Security Assurance | |
GTD | - Guaranteed | |
HUD | - Housing and Urban Development | |
MBIA | - Municipal Bond Investors Assurance | |
NR | - Not Rated | |
PSF | - Permanent School Fund | |
XLCA | - XL Capital Assurance |
Futures Contracts | ||||||||
Number of | In | Expiration | Unrealized | |||||
Contracts | Contracts to Deliver | Exchange For ($) | Date | Apppreciation ($) | ||||
55 | US Treasury Bond 30 Year Futures | 5,881,356 | September 2006 | 15,262 | ||||
For more information regarding the Funds other significant accounting policies, please refer to the Funds semiannual report to shareholders dated March 31, 2006. |
Item 2. Controls and Procedures. |
(a) | The registrants principal executive officer and principal financial officer have concluded
that the registrants disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (Investment
Company Act)) are effective based on their evaluation of these controls and
procedures as of a date within 90 days of the filing date of this document.
|
||
(b) | The registrants principal executive officer and principal financial officer are aware of
no changes in the registrants internal control over financial reporting (as
defined in Rule 30a-3(d) under the Investment Company Act) that occurred during
the registrants last fiscal quarter that has materially affected, or is reasonably
likely to materially affect, the registrants internal control over financial
reporting. |
Item 3. Exhibits. |
(a) | Certifications
of principal executive officer and principal financial officer of registrant pursuant
to Rule 30a-2(a) under the Investment Company Act is attached hereto as Exhibit
EX-99.CERT. |
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.
Investment Grade Municipal Income Fund Inc.
By: | /s/ W. Douglas Beck | ||
W. Douglas Beck | |||
President | |||
Date: | August 18, 2006 | ||
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ W. Douglas Beck | ||
W. Douglas Beck | |||
President | |||
Date: | August 18, 2006 | ||
By: | /s/ Thomas Disbrow | ||
Thomas Disbrow | |||
Vice President and Treasurer | |||
Date: | August 18, 2006 | ||