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OMB APPROVAL
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OMB Number: 3235-0570
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Expires: January 31, 2014
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Estimated average burden
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hours per response: 20.6
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05688
Invesco Municipal Premium Income Trust
(Exact name of registrant as specified in charter)
1555 Peachtree Street, N.E., Atlanta, Georgia 30309
(Address of principal executive offices) (Zip code)
Philip A. Taylor 1555 Peachtree Street, N.E., Atlanta, Georgia 30309
(Name and address of agent for service)
Registrants telephone number, including area code: (713) 626-1919
Date of fiscal year end: 2/28
Date of reporting period: 8/31/11
Item 1. Reports to Stockholders.
Invesco Municipal Premium Income Trust
Semiannual Report to Shareholders
§
August 31, 2011
NYSE: PIA
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2
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Letters to Shareholders
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3
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Trust Performance
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4
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Dividend Reinvestment Plan
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5
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Schedule of Investments
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13
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Financial Statements
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16
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Notes to Financial Statements
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22
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Financial Highlights
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24
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Approval of Investment Advisory and Sub-Advisory Agreements
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26
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Results of Proxy
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Unless otherwise noted, all data provided by Invesco.
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NOT FDIC INSURED
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MAY LOSE VALUE
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NO BANK GUARANTEE
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Letters to Shareholders
Bruce Crockett
Dear Fellow Shareholders:
In todays volatile market environment, investors face risks that could make it more difficult to
achieve their long-term financial goals a secure retirement, home ownership, a childs college
education. Although the markets are complex and dynamic, there are ways to simplify the process and
potentially increase your odds of achieving your goals. The best approach is to create a solid
financial plan that helps you save and invest in ways that anticipate your needs over the long
term.
Your financial adviser can help you define your financial plan, develop an appropriate
investment strategy and put you in a better position to achieve your financial goals over the long
term. This can take some of the guesswork out of the process and help you make thoughtful
investments. Your financial adviser also can help you better understand your tolerance for risk, so
that your investment approach lets you sleep at night while getting you closer to your goals.
Lastly, your financial adviser can develop an asset allocation strategy that seeks to balance your
investment approach, providing some protection against a decline in the markets while allowing you
to participate in rising markets. Invesco calls this type of approach intentional investing. It
means thinking carefully, planning thoughtfully and acting deliberately.
While no investment can guarantee favorable returns, your Board remains committed to managing
costs and enhancing the performance of Invescos funds as part of our Investor First orientation.
We continue to oversee the funds with the same strong sense of responsibility for your money and
your continued trust that weve always maintained.
As always, please contact me at bruce@brucecrockett.com with any questions or concerns you may
have. On behalf of your Board, we look forward to continuing to represent your interests and
serving your needs.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Philip Taylor
Dear Shareholders:
Enclosed is important information about your Fund, its performance and its holdings as of the close
of the reporting period.
In light of economic uncertainty and market volatility, I suggest you check the timely market
updates and commentary from many of our fund managers and other investment professionals at
invesco.com/us. On our website, you also can obtain information about your account at any hour of
the day or night. I invite you to visit and explore the tools and information we offer at
invesco.com/us.
As weve seen over the last several years, market conditions can change often suddenly and
dramatically. Thats one reason financial advisers typically advise their clients to be well
diversified and to maintain a long-term investment focus. While diversification cant guarantee a
profit or protect against loss, it can cushion the impact of dramatic market moves. Maintaining a
long-term investment focus for your long-term goals financing your retirement or your childrens
education, for example may help you avoid making rash investment decisions based on short-term
market swings.
Our funds are managed strictly according to their stated investment objectives and strategies,
with robust risk oversight using consistent, repeatable investment processes that dont change in
response to short-term market events. This disciplined approach cant guarantee a profit; no
investment can do that, since all involve some measure of risk. But it can ensure that your money
is managed the way we said it would be, and that its managed with a long-term focus.
If you have questions about your account, please contact one of our client service
representatives at 800 341 2929. If you have a general Invesco-related question or comment for me,
I invite you to email me directly at phil@invesco.com. All of us at Invesco look forward to serving
your investment management needs for many years to come. Thank you for investing with us.
Sincerely,
Philip Taylor
Senior Managing Director, Invesco Ltd.
2
Invesco Municipal Premium Income Trust
Trust Performance
Performance summary
Cumulative total returns, 2/28/11 to 8/31/11
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Trust at NAV
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11.54
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%
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Trust at Market Value
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8.82
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Barclays Capital Municipal Bond Index
▼
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6.39
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Market Price Discount to NAV as of 8/31/11
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-6.06
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The performance data quoted represent past performance and cannot guarantee comparable
future results; current performance may be lower or higher. Investment return, net asset
value and common share market price will fluctuate so that you may have a gain or loss when
you sell shares. Please visit invesco.com/performance for the most recent month-end
performance. Performance figures reflect Trust expenses, the reinvestment of distributions
(if any) and changes in net asset value (NAV) for performance based on NAV and changes in
market price for performance based on market price.
Since the Trust is a closed-end management investment company, shares of the Trust may trade
at a discount or premium from the NAV. This characteristic is separate and distinct from the risk
that NAV could decrease as a result of investment activities and may be a greater risk to investors
expecting to sell their shares after a short time. The Trust cannot predict whether shares will
trade at, above or below NAV. The Trust should not be viewed as a vehicle for trading purposes. It
is designed primarily for risk-tolerant long-term investors.
The
Barclays Capital Municipal Bond Index
is an unmanaged index considered representative
of the tax-exempt bond market.
The Trust is not managed to track the performance of any particular index, including the
index(es) defined here, and consequently, the performance of the Trust may deviate significantly
from the performance of the index(es).
A direct investment cannot be made in an index. Unless otherwise indicated, index results
include reinvested dividends, and they do not reflect sales charges.
Portfolio Management Update
The following individuals are jointly and primarily responsible for the day-to-day management
of Invesco Municipal Premium Income Trust.
Effective June 28, 2011,
Richard Berry
joined the Trusts management team. He has been
associated with Invesco or its affiliates in an investment capacity since 1987.
Effective June 28, 2011,
Stephen Turman
joined the Trusts management team. He has been
associated with
Invesco or its affiliates in an investment capacity since 1985.
Thomas Byron
began managing the Trust in 2009 and has been associated with Invesco or its
affiliates in an investment capacity since 2010. From 1981 to 2010, Mr. Byron was associated with
Van Kampen Asset Management or its affiliates in an investment capacity.
Robert Stryker
began managing the Trust in 2009 and has been associated with Invesco or its
affiliates in an invest-
ment capacity since 2010. From 1994 to 2010, Mr. Stryker was associated with Van Kampen Asset
Management or its affiliates in an investment capacity.
Robert Wimmel
began managing the Trust in 2009 and has been associated with Invesco or its
affiliates in an investment capacity since 2010. From 1996 to 2010, Mr. Wimmel was associated with
Van Kampen Asset Management or its affiliates in an investment capacity.
3
Invesco Municipal Premium Income Trust
Dividend Reinvestment Plan
The dividend reinvestment plan (the Plan) offers you a prompt and simple way to reinvest your
dividends and capital gains distributions (Distributions) into additional shares of your Trust.
Under the Plan, the money you earn from dividends and capital gains distributions will be
reinvested automatically in more shares of your Trust, allowing you to potentially increase your
investment over time.
Plan benefits
n
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Add to your account:
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You may increase the amount of shares in your Trust easily and automatically with the Plan.
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Low transaction costs:
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Transaction costs are low because the new shares are bought in blocks and the brokerage
commission is shared among all participants.
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n
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Convenience:
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You will receive a detailed account statement from Computershare Trust Company, N.A. (the Agent)
which administers the Plan. The statement shows your total Distributions, date of investment,
shares acquired, and price per share, as well as the total number of shares in your reinvestment
account. You can also access your account via the Internet. To do this, please go to
invesco.com/us.
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n
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Safekeeping:
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The Agent will hold the shares it has acquired for you in safekeeping.
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How to participate in the Plan
If you own shares in your own name, you can participate directly in the Plan. If your shares
are held in street name in the name of your brokerage firm, bank, or other financial
institution you must instruct that entity to participate on your behalf. If they are unable to
participate on your behalf, you may request that they reregister your shares in your own name so
that you may enroll in the Plan.
How to enroll
To enroll in the Plan, please read the Terms and Conditions in the Plan brochure. You can
enroll in the Plan by visiting invesco.com/us, calling toll-free 800 341 2929 or notifying us in
writing at Invesco Closed-End Funds, Computershare Trust Company, N.A., P.O. Box 43078, Providence,
RI 02940-3078. Please include your Trust name and account number and ensure that all shareholders
listed on the account sign these written instructions. Your participation in the Plan will begin
with the next Distribution payable after the Agent receives your authorization, as long as they
receive it before the record date, which is generally one week before such Distributions are
paid. If your authorization arrives after such record date, your participation in the Plan will
begin with the following Distributions.
How the Plan Works
If you choose to participate in the Plan, whenever your Trust declares such Distributions, it
will be invested in additional shares of your Trust that are purchased on the open market.
Costs of the Plan
There is no direct charge to you for reinvesting Distributions because the Plans fees are paid
by your Trust. However, you will pay your portion of any per share fees incurred when the new
shares are purchased on the open market. These fees are typically less than the standard brokerage
charges for individual transactions, because shares are purchased for all Participants in blocks,
resulting in lower commissions for each individual Participant. Any per share or service fees are
averaged into the purchase price. Per share fees include any applicable brokerage commissions the
Agent is required to pay.
Tax implications
The automatic reinvestment of Distributions does not relieve you of any income tax that may be
due on Distributions. You will receive tax information annually to help you prepare your federal
income tax return.
Invesco does not offer tax advice. The tax information contained herein is general and is not
exhaustive by nature. It was not intended or written to be used, and it cannot be used, by any
taxpayer for avoiding penalties that may be imposed on the taxpayer under U.S. federal tax laws.
Federal and state tax laws are complex and constantly changing. Shareholders should always consult
a legal or tax adviser for information concerning their individual situation.
How to withdraw from the Plan
You may withdraw from the Plan at any time by calling 800 341 2929, visiting invesco.com/us or
by writing to Invesco Closed-End Funds, Computershare Trust Company, N.A., P.O. Box 43078,
Providence, RI 02940-3078. Simply indicate that you would like to withdraw from the Plan, and be
sure to include your Trust name and account number. Also, ensure that all shareholders listed on
the account have signed these written instructions. If you withdraw, you have three options with
regard to the shares held in the Plan:
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1.
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If you opt to continue to hold your non-certificated shares, whole shares will be held by the
Agent and fractional shares will be sold. The proceeds will be sent via check to your address
of record after deducting per share fees. Per share fees include any applicable brokerage
commissions the Agent is required to pay.
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2.
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If you opt to sell your shares through the Agent, we will sell all full and fractional shares
and send the proceeds via check to your address of record after deducting per share fees. Per
share fees include any applicable brokerage commissions the Agent is required to pay.
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3.
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You may sell your shares through your financial adviser through the Direct Registration
System (DRS). DRS is a service within the securities industry that allows Trust shares to be
held in your name in electronic format. You retain full ownership of your shares, without
having to hold a stock certificate. You should contact your financial adviser to learn more
about any restrictions or fees that may apply.
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To obtain a complete copy of the Dividend Reinvestment Plan, please call our Client Services
department at 800 341 2929 or visit invesco.com/us.
4
Invesco Municipal Premium Income Trust
Schedule
of Investments
August 31,
2011
(Unaudited)
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Principal
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Interest
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Maturity
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Amount
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Rate
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Date
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(000)
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Value
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Municipal Obligations167.23%
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Alabama2.30%
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Birmingham (City of) Airport Authority; Series 2010, RB
(INSAGM)
(a)
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5.25
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%
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07/01/30
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$
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450
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$
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470,011
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University of Alabama Board of Trustees;
Series 2004 A, RB
(INSNATL)
(a)
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5.25
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%
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07/01/20
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2,500
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2,752,450
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3,222,461
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Arizona7.17%
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Glendale (City of) Industrial Development Authority (John C.
Lincoln Health Network); Series 2005 B, Ref. Hospital
RB
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5.00
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%
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12/01/37
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1,075
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923,586
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Maricopa County Pollution Control Corp. (Arizona Public Service
Co.Palo Verde); Series 2009 A, Ref.
PCR
(b)(c)
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6.00
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%
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05/01/14
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300
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330,252
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Pima (County of) Industrial Development Authority (Tucson
Electric Power Co.); Series 2010 A, IDR
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5.25
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%
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10/01/40
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550
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499,274
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Salt River Project Agricultural Improvement & Power
District; Series 2002 B, Electric System
RB
(d)
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5.00
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%
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01/01/31
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8,000
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8,305,920
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10,059,032
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California20.38%
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California (State of) Infrastructure & Economic
Development Bank (The Scripps Research Institute);
Series 2005 A, RB
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5.00
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%
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07/01/29
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2,000
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2,047,820
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California (State of);
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Series 2004 A, Economic Recovery Unlimited Tax GO Bonds
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5.00
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%
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07/01/16
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2,155
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2,162,887
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Series 2005, Various Purpose Unlimited Tax GO Bonds
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5.00
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%
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03/01/27
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2,700
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2,800,629
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Camarillo (City of) Public Finance Authority; Series 2005,
Wastewater RB
(INSAMBAC)
(a)
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5.00
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%
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06/01/36
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2,000
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2,018,780
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East Bay Municipal Utility District; Series 2010 A,
Ref. Sub. Water System RB
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5.00
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%
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06/01/36
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1,050
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1,121,620
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Golden State Tobacco Securitization Corp.;
Series 2005 A, Enhanced Tobacco Settlement
Asset-Backed RB
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5.00
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%
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06/01/45
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2,000
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1,766,680
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Kern (County of) Board of Education; Series 2006 A,
Ref. COP
(INSNATL)
(a)
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5.00
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%
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06/01/31
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1,000
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940,140
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Los Angeles (City of) Department of Water & Power;
Series 2004 C, Water System RB
(INSNATL)
(a)(d)
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5.00
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%
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07/01/25
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3,000
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3,255,180
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Oakland (Port of);
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Series 2002 L,
RB
(b)(e)(f)
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5.00
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%
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11/01/12
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110
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115,793
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Series 2002 L, RB
(INSNATL)
(a)(e)
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5.00
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%
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11/01/21
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890
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900,280
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Oxnard (City of) Financing Authority (Redwood Trunk
Sewer & Headworks); Series 2004 A,
Wastewater RB
(INSNATL)
(a)
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5.00
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%
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06/01/29
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3,000
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3,120,360
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Sacramento (County of); Series 2010, Sr. Airport System RB
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5.00
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%
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07/01/40
|
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650
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|
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648,479
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San Diego (County of) Water Authority; Series 2004 A,
Water Revenue COP
(INSAGM)
(a)(d)
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5.00
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%
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05/01/29
|
|
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3,000
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|
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3,100,680
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San Diego Community College District (Election of 2006);
Series 2011, Unlimited Tax GO Bonds
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5.00
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%
|
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08/01/36
|
|
|
|
660
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|
|
|
691,792
|
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San Francisco (City & County of) (Laguna Honda
Hospital); Series 2008 R3, Ref. Unlimited Tax GO Bonds
(INSAGC)
(a)(d)
|
|
|
5.00
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%
|
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|
06/15/28
|
|
|
|
460
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|
|
|
476,569
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|
|
San Francisco (City & County of) Airport Commission
(San Francisco International Airport);
|
|
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|
|
|
|
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|
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Series 2011 F, Ref. Second
Series RB
(e)
|
|
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5.00
|
%
|
|
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05/01/25
|
|
|
|
220
|
|
|
|
224,723
|
|
|
Series 2011 F, Ref. Second
Series RB
(e)
|
|
|
5.00
|
%
|
|
|
05/01/26
|
|
|
|
440
|
|
|
|
445,355
|
|
|
San Francisco (City & County of) Public Utilities
Commission (Water System Improvement Program);
Subseries 2011 A, Water RB
|
|
|
5.00
|
%
|
|
|
11/01/36
|
|
|
|
945
|
|
|
|
996,172
|
|
|
Twin Rivers Unified School District; Series 2009, Unlimited
Tax CAB GO
BAN
(g)
|
|
|
0.00
|
%
|
|
|
04/01/14
|
|
|
|
600
|
|
|
|
563,850
|
|
|
William S. Hart Union High School District (Election of 2008);
Series 2009 A, Unlimited Tax CAB GO
Bonds
(g)
|
|
|
0.00
|
%
|
|
|
08/01/32
|
|
|
|
4,650
|
|
|
|
1,176,403
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28,574,192
|
|
|
Colorado6.11%
|
|
|
|
|
|
|
|
|
|
|
|
|
Colorado (State of) Health Facilities Authority (Catholic Health
Initiatives); Series 2009 A, RB
|
|
|
5.00
|
%
|
|
|
07/01/39
|
|
|
|
1,500
|
|
|
|
1,497,660
|
|
|
Denver (City of) Convention Center Hotel Authority;
Series 2006, Ref. Sr. RB
(INSSGI)
(a)
|
|
|
5.00
|
%
|
|
|
12/01/30
|
|
|
|
2,000
|
|
|
|
1,785,880
|
|
|
See accompanying Notes to Financial Statements which are an
integral part of the financial statements.
5 Invesco
Municipal Premium Income Trust
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Principal
|
|
|
|
|
Interest
|
|
Maturity
|
|
Amount
|
|
|
|
|
Rate
|
|
Date
|
|
(000)
|
|
Value
|
|
Colorado(continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Fort Collins (City of);
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2004 A, Lease COP
(INSAMBAC)
(a)
|
|
|
5.38
|
%
|
|
|
06/01/21
|
|
|
$
|
2,040
|
|
|
$
|
2,226,130
|
|
|
Series 2004 A, Lease COP
(INSAMBAC)
(a)
|
|
|
5.38
|
%
|
|
|
06/01/22
|
|
|
|
2,155
|
|
|
|
2,356,794
|
|
|
Regional Transportation District (Denver Transit Partners,
LLCEagle P3); Series 2010, Private Activity RB
|
|
|
6.00
|
%
|
|
|
01/15/41
|
|
|
|
700
|
|
|
|
700,420
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,566,884
|
|
|
Connecticut0.77%
|
|
|
|
|
|
|
|
|
|
|
|
|
Connecticut (State of) Development Authority (Aquarion Water
Co.); Series 2011, Water Facilities
RB
(e)
|
|
|
5.50
|
%
|
|
|
04/01/21
|
|
|
|
1,000
|
|
|
|
1,074,930
|
|
|
District of Columbia3.24%
|
|
|
|
|
|
|
|
|
|
|
|
|
District of Columbia;
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2006 B-1, Ballpark RB
(INSNATL)
(a)
|
|
|
5.00
|
%
|
|
|
02/01/31
|
|
|
|
3,000
|
|
|
|
2,912,790
|
|
|
Series 2008 E, Unlimited Tax GO Bonds
(INSBHAC)
(a)(d)
|
|
|
5.00
|
%
|
|
|
06/01/26
|
|
|
|
380
|
|
|
|
412,201
|
|
|
Series 2008 E, Unlimited Tax GO Bonds
(INSBHAC)
(a)(d)
|
|
|
5.00
|
%
|
|
|
06/01/27
|
|
|
|
380
|
|
|
|
409,366
|
|
|
Series 2008 E, Unlimited Tax GO Bonds
(INSBHAC)
(a)(d)
|
|
|
5.00
|
%
|
|
|
06/01/28
|
|
|
|
760
|
|
|
|
814,044
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,548,401
|
|
|
Florida18.05%
|
|
|
|
|
|
|
|
|
|
|
|
|
Broward (County of) Educational Facilities Authority (Nova
Southeastern University); Series 2006, RB
(INSAGC)
(a)
|
|
|
5.00
|
%
|
|
|
04/01/31
|
|
|
|
2,000
|
|
|
|
2,021,940
|
|
|
Florida (State of) Ports Financing Commission (State
Transportation Trust Fund); Series 2011 B, Ref.
RB
(e)
|
|
|
5.13
|
%
|
|
|
06/01/27
|
|
|
|
480
|
|
|
|
491,995
|
|
|
JEA; Series 2005 B, Water & Sewer System RB
(INSNATL)
(a)
|
|
|
5.00
|
%
|
|
|
10/01/24
|
|
|
|
2,460
|
|
|
|
2,568,363
|
|
|
Miami-Dade (County of) (Florida Public Improvement);
Series 1988 DD, Unlimited Tax GO Bonds
(INSAMBAC)
(a)
|
|
|
7.75
|
%
|
|
|
10/01/15
|
|
|
|
830
|
|
|
|
1,042,024
|
|
|
Miami-Dade (County of) (Miami International Airport);
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2000 B, Aviation RB
(INSNATL)
(a)
|
|
|
5.75
|
%
|
|
|
10/01/24
|
|
|
|
2,500
|
|
|
|
2,534,000
|
|
|
Series 2009 B, Aviation RB
(INSAGC)
(a)
|
|
|
5.00
|
%
|
|
|
10/01/25
|
|
|
|
650
|
|
|
|
697,047
|
|
|
Miami-Dade (County of) Expressway Authority;
Series 2010 A, Ref. Toll System RB
|
|
|
5.00
|
%
|
|
|
07/01/40
|
|
|
|
1,000
|
|
|
|
991,630
|
|
|
Miami-Dade (County of) Health Facilities Authority (Miami
Childrens Hospital); Series 2010 A, Ref.
Hospital RB
|
|
|
6.00
|
%
|
|
|
08/01/30
|
|
|
|
260
|
|
|
|
271,284
|
|
|
Orlando (City of) Utilities Commission; Series 2003 B,
Ref. Water & Electric RB
|
|
|
5.00
|
%
|
|
|
10/01/22
|
|
|
|
5,000
|
|
|
|
5,300,300
|
|
|
Palm Beach (County of) Solid Waste Authority; Series 2009,
Improvement RB
(INSBHAC)
(a)
|
|
|
5.50
|
%
|
|
|
10/01/23
|
|
|
|
600
|
|
|
|
709,542
|
|
|
South Miami Health Facilities Authority (Baptist Health South
Florida Obligated Group); Series 2007, Hospital RB
|
|
|
5.00
|
%
|
|
|
08/15/42
|
|
|
|
8,000
|
|
|
|
7,839,360
|
|
|
St. Johns (County of) Industrial Development Authority
(Glenmoor); Series 2006 A, Health Care RB
|
|
|
5.25
|
%
|
|
|
01/01/26
|
|
|
|
1,000
|
|
|
|
842,350
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25,309,835
|
|
|
Georgia6.67%
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta (City of); Series 1999 A, Water &
Wastewater RB
(INSNATL)
(a)
|
|
|
5.50
|
%
|
|
|
11/01/22
|
|
|
|
3,000
|
|
|
|
3,446,250
|
|
|
Burke (County of) Development Authority (Oglethorpe Power
Corp.Plant Vogtle); Series 2011 A,
PCR
(b)(c)
|
|
|
2.50
|
%
|
|
|
03/01/13
|
|
|
|
490
|
|
|
|
498,815
|
|
|
Georgia (State of) Road & Tollway Authority;
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2003, Gtd.
RB
(b)(f)
|
|
|
5.00
|
%
|
|
|
10/01/13
|
|
|
|
2,000
|
|
|
|
2,193,980
|
|
|
Series 2003, Gtd. RB
|
|
|
5.00
|
%
|
|
|
10/01/23
|
|
|
|
3,000
|
|
|
|
3,218,070
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,357,115
|
|
|
Hawaii0.91%
|
|
|
|
|
|
|
|
|
|
|
|
|
Hawaii (State of) Department of Budget & Finance
(Hawaii Pacific Health Obligated Group);
Series 2010 B, Special Purpose RB
|
|
|
5.75
|
%
|
|
|
07/01/40
|
|
|
|
370
|
|
|
|
359,821
|
|
|
Hawaii (State of); Series 2010 A, Airport System RB
|
|
|
5.00
|
%
|
|
|
07/01/39
|
|
|
|
900
|
|
|
|
913,104
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,272,925
|
|
|
Idaho1.27%
|
|
|
|
|
|
|
|
|
|
|
|
|
Idaho (State of) Housing & Finance Association
(Federal Highway Trust Fund); Series 2008 A,
Grant & RAB
(INSAGC)
(a)
|
|
|
5.25
|
%
|
|
|
07/15/24
|
|
|
|
1,240
|
|
|
|
1,377,318
|
|
|
See accompanying Notes to Financial Statements which are an
integral part of the financial statements.
6 Invesco
Municipal Premium Income Trust
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
Interest
|
|
Maturity
|
|
Amount
|
|
|
|
|
Rate
|
|
Date
|
|
(000)
|
|
Value
|
|
Idaho(continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
University of Idaho Regents; Series 2011, Ref. General
RB
(b)(c)
|
|
|
5.25
|
%
|
|
|
04/01/21
|
|
|
$
|
350
|
|
|
$
|
404,365
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,781,683
|
|
|
Illinois12.15%
|
|
|
|
|
|
|
|
|
|
|
|
|
Chicago (City of) (Chicago OHare International Airport);
Series 2005 A, Third Lien General Airport RB
(INSNATL)
(a)
|
|
|
5.25
|
%
|
|
|
01/01/26
|
|
|
|
4,000
|
|
|
|
4,156,560
|
|
|
Chicago (City of) Park District; Series 2004 A,
Limited Tax GO Bonds
(INSAMBAC)
(a)
|
|
|
5.00
|
%
|
|
|
01/01/28
|
|
|
|
2,500
|
|
|
|
2,574,650
|
|
|
Chicago (City of);
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 1996
A-2,
Ref.
Unlimited Tax GO Bonds
(INSAMBAC)
(a)
|
|
|
5.50
|
%
|
|
|
01/01/18
|
|
|
|
700
|
|
|
|
781,907
|
|
|
Series 2007 A, Ref. & Project Unlimited Tax GO
Bonds
(INSAGM)
(a)(d)(h)
|
|
|
5.00
|
%
|
|
|
01/01/37
|
|
|
|
3,300
|
|
|
|
3,315,114
|
|
|
Illinois (State of) Finance Authority (Little Co. of Mary
Hospital & Health Care Centers); Series 2010, RB
|
|
|
5.38
|
%
|
|
|
08/15/40
|
|
|
|
625
|
|
|
|
588,763
|
|
|
Illinois (State of) Finance Authority (Northwestern Memorial
Hospital); Series 2009 B, RB
|
|
|
5.00
|
%
|
|
|
08/15/16
|
|
|
|
380
|
|
|
|
436,818
|
|
|
Illinois (State of) Finance Authority (Resurrection Health Care
Corp.); Series 2009, Ref. RB
|
|
|
6.13
|
%
|
|
|
05/15/25
|
|
|
|
775
|
|
|
|
804,125
|
|
|
Illinois (State of) Finance Authority (Rush University Medical
Center Obligated Group); Series 2009 A, RB
|
|
|
7.25
|
%
|
|
|
11/01/38
|
|
|
|
295
|
|
|
|
324,108
|
|
|
Illinois (State of) Finance Authority (Swedish Covenent
Hospital);
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2010 A, Ref. RB
|
|
|
5.75
|
%
|
|
|
08/15/29
|
|
|
|
1,105
|
|
|
|
1,106,425
|
|
|
Series 2010 A, Ref. RB
|
|
|
6.00
|
%
|
|
|
08/15/38
|
|
|
|
580
|
|
|
|
579,211
|
|
|
Illinois (State of) Finance Authority (The University of Chicago
Medical Center); Series 2011 C, RB
|
|
|
5.50
|
%
|
|
|
08/15/41
|
|
|
|
675
|
|
|
|
700,940
|
|
|
Metropolitan Pier & Exposition Authority (McCormick
Place Expansion); Series 2010 A, RB
|
|
|
5.50
|
%
|
|
|
06/15/50
|
|
|
|
650
|
|
|
|
659,438
|
|
|
Railsplitter Tobacco Settlement Authority; Series 2010, RB
|
|
|
5.50
|
%
|
|
|
06/02/23
|
|
|
|
950
|
|
|
|
1,002,734
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17,030,793
|
|
|
Indiana1.55%
|
|
|
|
|
|
|
|
|
|
|
|
|
Indiana (State of) Finance Authority (Clarion Health Obligated
Group); Series 2006 A, Hospital RB
|
|
|
5.25
|
%
|
|
|
02/15/40
|
|
|
|
1,080
|
|
|
|
1,067,386
|
|
|
Indiana (State of) Finance Authority (CWA Authority);
Series 2011 B, Second Lien Wastewater Utility RB
|
|
|
5.25
|
%
|
|
|
10/01/31
|
|
|
|
660
|
|
|
|
690,749
|
|
|
Rockport (City of) (Indiana Michigan Power Co.);
Series 2009 B, Ref.
PCR
(b)(c)
|
|
|
6.25
|
%
|
|
|
06/02/14
|
|
|
|
375
|
|
|
|
417,604
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,175,739
|
|
|
Iowa1.36%
|
|
|
|
|
|
|
|
|
|
|
|
|
Iowa (State of) (Iowa Jobs Program);
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2009 A, Special Obligation
RB
(d)(h)
|
|
|
5.00
|
%
|
|
|
06/01/25
|
|
|
|
975
|
|
|
|
1,091,941
|
|
|
Series 2009 A, Special Obligation
RB
(d)(h)
|
|
|
5.00
|
%
|
|
|
06/01/26
|
|
|
|
730
|
|
|
|
809,212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,901,153
|
|
|
Kansas0.26%
|
|
|
|
|
|
|
|
|
|
|
|
|
Kansas (State of) Development Finance Authority (Adventist
Health System/Sunbelt Obligated Group); Series 2009 C,
Hospital RB
|
|
|
5.50
|
%
|
|
|
11/15/29
|
|
|
|
335
|
|
|
|
364,215
|
|
|
Kentucky2.66%
|
|
|
|
|
|
|
|
|
|
|
|
|
Kentucky (State of) Economic Development Finance Authority
(Owensboro Medical Health System, Inc.);
Series 2010 A, Hospital RB
|
|
|
6.50
|
%
|
|
|
03/01/45
|
|
|
|
450
|
|
|
|
460,175
|
|
|
Louisville (City of) & Jefferson (County of) Metropolitan
Sewer District; Series 2001 A, Sewer &
Drainage
System RB
(b)(f)
|
|
|
5.38
|
%
|
|
|
11/15/11
|
|
|
|
3,215
|
|
|
|
3,272,677
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,732,852
|
|
|
Louisiana4.07%
|
|
|
|
|
|
|
|
|
|
|
|
|
Lafayette (City of) Public Trust Financing Authority (Ragin
Cajun Facilities, Inc.Housing & Parking);
Series 2010, RB
(INSAGM)
(a)
|
|
|
5.25
|
%
|
|
|
10/01/30
|
|
|
|
550
|
|
|
|
581,719
|
|
|
Louisiana (State of) Offshore Terminal Authority (Louisiana
Offshore Oil Port LLC); Series 2007 B-2, Deepwater Port
RB
(b)(c)
|
|
|
4.30
|
%
|
|
|
10/01/11
|
|
|
|
750
|
|
|
|
752,572
|
|
|
See accompanying Notes to Financial Statements which are an
integral part of the financial statements.
7 Invesco
Municipal Premium Income Trust
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
Interest
|
|
Maturity
|
|
Amount
|
|
|
|
|
Rate
|
|
Date
|
|
(000)
|
|
Value
|
|
Louisiana(continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Louisiana (State of) Public Facilities Authority (Ochsner Clinic
Foundation); Series 2002 B,
RB
(b)(f)
|
|
|
5.50
|
%
|
|
|
05/15/26
|
|
|
$
|
2,000
|
|
|
$
|
2,470,960
|
|
|
St. John the Baptist (Parish of) (Marathon Oil Corp.);
Series 2007 A, RB
|
|
|
5.13
|
%
|
|
|
06/01/37
|
|
|
|
2,000
|
|
|
|
1,907,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,713,011
|
|
|
Maryland2.08%
|
|
|
|
|
|
|
|
|
|
|
|
|
Baltimore (County of) (Oak Crest Village, Inc. Facility);
Series 2007 A, RB
|
|
|
5.00
|
%
|
|
|
01/01/37
|
|
|
|
505
|
|
|
|
466,777
|
|
|
Maryland (State of) Community Development Administration;
Series 2006 P, Residential
RB
(e)
|
|
|
4.63
|
%
|
|
|
09/01/31
|
|
|
|
2,000
|
|
|
|
1,954,060
|
|
|
Maryland Economic Development Corp. (Terminal);
Series 2010 B, RB
|
|
|
5.75
|
%
|
|
|
06/01/35
|
|
|
|
500
|
|
|
|
494,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,915,042
|
|
|
Massachusetts0.57%
|
|
|
|
|
|
|
|
|
|
|
|
|
Massachusetts (State of) Development Finance Agency (Berklee
College of Music); Series 2007 A, RB
|
|
|
5.00
|
%
|
|
|
10/01/32
|
|
|
|
500
|
|
|
|
506,780
|
|
|
Massachusetts (State of) Development Finance Agency (Tufts
Medical Center); Series 2011 I, RB
|
|
|
6.75
|
%
|
|
|
01/01/36
|
|
|
|
275
|
|
|
|
290,955
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
797,735
|
|
|
Michigan1.22%
|
|
|
|
|
|
|
|
|
|
|
|
|
Lansing (City of) Board of Water & Light;
Series 2011 A, Utility System RB
|
|
|
5.00
|
%
|
|
|
07/01/37
|
|
|
|
750
|
|
|
|
781,005
|
|
|
Wayne State University Board of Governors; Series 2008,
Ref. General RB
(INSAGM)
(a)
|
|
|
5.00
|
%
|
|
|
11/15/25
|
|
|
|
870
|
|
|
|
935,676
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,716,681
|
|
|
Minnesota0.16%
|
|
|
|
|
|
|
|
|
|
|
|
|
Minnesota (State of) Housing Finance Agency (Rental Housing);
Series 1995 D, RB
(INSNATL)
(a)
|
|
|
6.00
|
%
|
|
|
02/01/22
|
|
|
|
220
|
|
|
|
220,326
|
|
|
Missouri2.84%
|
|
|
|
|
|
|
|
|
|
|
|
|
Fenton (City of) (Gravois Bluffs Redevelopment);
Series 2006, Ref. Tax Increment Allocation RB
|
|
|
4.50
|
%
|
|
|
04/01/21
|
|
|
|
970
|
|
|
|
988,760
|
|
|
Kansas City (City of) Industrial Development Authority (Downtown
Redevelopment District);
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2011 A, Ref. RB
|
|
|
5.50
|
%
|
|
|
09/01/24
|
|
|
|
1,000
|
|
|
|
1,128,180
|
|
|
Series 2011 A, Ref. RB
|
|
|
5.50
|
%
|
|
|
09/01/28
|
|
|
|
430
|
|
|
|
465,040
|
|
|
Missouri (State of) Health & Educational Facilities
Authority (Missouri Baptist Medical Center); Series 1989,
Health Facilities
RB
(f)
|
|
|
7.63
|
%
|
|
|
07/01/18
|
|
|
|
1,230
|
|
|
|
1,398,756
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,980,736
|
|
|
Montana0.59%
|
|
|
|
|
|
|
|
|
|
|
|
|
Forsyth (City of) (Portland General Electric Co.);
Series 1998 A, Ref. PCR
|
|
|
5.00
|
%
|
|
|
05/01/33
|
|
|
|
800
|
|
|
|
832,896
|
|
|
Nevada4.06%
|
|
|
|
|
|
|
|
|
|
|
|
|
Clark (County of) (Las Vegas-McCarran International Airport);
Series 2010 A, Passenger Facility Charge RB
|
|
|
5.13
|
%
|
|
|
07/01/34
|
|
|
|
500
|
|
|
|
507,415
|
|
|
Las Vegas (City of) Redevelopment Agency;
Series 2009 A, Tax Increment Allocation RB
|
|
|
6.25
|
%
|
|
|
06/15/16
|
|
|
|
290
|
|
|
|
327,045
|
|
|
Las Vegas (City of) Valley Water District;
Series 2003 A, Ref. & Water Improvement Limited
Tax GO Bonds
(INSNATL)
(a)
|
|
|
5.25
|
%
|
|
|
06/01/22
|
|
|
|
3,000
|
|
|
|
3,135,120
|
|
|
Nevada (State of) (Capital Improvements & Cultural
Affairs); Series 2008 C, Limited Tax GO Bonds
(INSAGM)
(a)(d)
|
|
|
5.00
|
%
|
|
|
06/01/26
|
|
|
|
1,600
|
|
|
|
1,721,664
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,691,244
|
|
|
New Hampshire0.22%
|
|
|
|
|
|
|
|
|
|
|
|
|
New Hampshire (State of) Business Finance Authority (United
Illuminating Co.Series 1997 A); Series 2009,
PCR
(b)(c)(e)
|
|
|
7.13
|
%
|
|
|
02/01/12
|
|
|
|
295
|
|
|
|
302,021
|
|
|
New Jersey1.79%
|
|
|
|
|
|
|
|
|
|
|
|
|
New Jersey (State of) Economic Development Authority (Provident
Group-Montclair Properties LLCMontclair State University
Student Housing); Series 2010 A, RB
|
|
|
5.75
|
%
|
|
|
06/01/31
|
|
|
|
440
|
|
|
|
441,153
|
|
|
See accompanying Notes to Financial Statements which are an
integral part of the financial statements.
8 Invesco
Municipal Premium Income Trust
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
Interest
|
|
Maturity
|
|
Amount
|
|
|
|
|
Rate
|
|
Date
|
|
(000)
|
|
Value
|
|
New Jersey(continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passaic Valley Sewerage Commissioners; Series 2003 F,
Sewer System RB
(INSNATL)
(a)
|
|
|
5.00
|
%
|
|
|
12/01/19
|
|
|
$
|
2,000
|
|
|
$
|
2,069,480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,510,633
|
|
|
New Mexico0.78%
|
|
|
|
|
|
|
|
|
|
|
|
|
Farmington (City of) (Public Service Co. of New MexicoSan
Juan);
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2010 A, Ref.
PCR
(b)(c)
|
|
|
5.20
|
%
|
|
|
06/01/20
|
|
|
|
500
|
|
|
|
510,605
|
|
|
Series 2010 C, Ref. PCR
|
|
|
5.90
|
%
|
|
|
06/01/40
|
|
|
|
600
|
|
|
|
576,306
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,086,911
|
|
|
New York27.68%
|
|
|
|
|
|
|
|
|
|
|
|
|
Brooklyn Arena Local Development Corp. (Barclays Center);
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2009, PILOT RB
|
|
|
6.25
|
%
|
|
|
07/15/40
|
|
|
|
380
|
|
|
|
386,825
|
|
|
Series 2009, PILOT RB
|
|
|
6.38
|
%
|
|
|
07/15/43
|
|
|
|
160
|
|
|
|
163,837
|
|
|
Long Island Power Authority; Series 2004 A, Electric
System RB
(INSAMBAC)
(a)
|
|
|
5.00
|
%
|
|
|
09/01/34
|
|
|
|
2,250
|
|
|
|
2,282,828
|
|
|
Metropolitan Transportation Authority; Series 2002 B,
Service Contract RB
(INSNATL)
(a)
|
|
|
5.50
|
%
|
|
|
07/01/20
|
|
|
|
3,000
|
|
|
|
3,106,860
|
|
|
New York (City of) Industrial Development Agency (7 World Trade
Center, LLC); Series 2005 A, Liberty RB
|
|
|
6.25
|
%
|
|
|
03/01/15
|
|
|
|
2,000
|
|
|
|
2,007,840
|
|
|
New York (City of) Industrial Development Agency (Yankee
Stadium); Series 2006, PILOT RB
(INSFGIC)
(a)
|
|
|
5.00
|
%
|
|
|
03/01/46
|
|
|
|
1,035
|
|
|
|
964,423
|
|
|
New York (City of) Municipal Water Finance Authority;
Series 2010 FF, Water & Sewer System Second
General Resolution RB
|
|
|
5.00
|
%
|
|
|
06/15/31
|
|
|
|
2,100
|
|
|
|
2,248,575
|
|
|
New York (City of) Transitional Finance Authority;
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2009
A-1,
Future
Tax Sec. Sub.
RB
(d)
|
|
|
5.00
|
%
|
|
|
05/01/28
|
|
|
|
935
|
|
|
|
1,020,992
|
|
|
Series 2009
A-1,
Future
Tax Sec. Sub.
RB
(d)
|
|
|
5.00
|
%
|
|
|
05/01/29
|
|
|
|
745
|
|
|
|
808,839
|
|
|
Series 2009
A-1,
Future
Tax Sec. Sub.
RB
(d)
|
|
|
5.00
|
%
|
|
|
05/01/30
|
|
|
|
745
|
|
|
|
803,170
|
|
|
New York (City of) Trust for Cultural Resources (The Museum of
Modern Art); Series 2008 One-A, Ref.
RB
(d)
|
|
|
5.00
|
%
|
|
|
04/01/28
|
|
|
|
2,850
|
|
|
|
3,089,086
|
|
|
New York (City of);
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2008
A-1,
Unlimited Tax GO
Bonds
(d)
|
|
|
5.25
|
%
|
|
|
08/15/27
|
|
|
|
1,440
|
|
|
|
1,578,802
|
|
|
Series 2008
A-1,
Unlimited Tax GO
Bonds
(d)
|
|
|
5.25
|
%
|
|
|
08/15/28
|
|
|
|
1,440
|
|
|
|
1,572,336
|
|
|
Series 2009 H-1, Unlimited Tax GO Bonds
|
|
|
5.00
|
%
|
|
|
03/01/16
|
|
|
|
1,500
|
|
|
|
1,754,505
|
|
|
New York (State of) Dormitory Authority (Cornell University);
Series 2006 A,
RB
(d)
|
|
|
5.00
|
%
|
|
|
07/01/35
|
|
|
|
6,085
|
|
|
|
6,345,621
|
|
|
New York (State of) Dormitory Authority (Montefiore Medical
Center); Series 2004, FHA Insured Mortgage Hospital RB
(INSNATL)
(a)
|
|
|
5.00
|
%
|
|
|
08/01/29
|
|
|
|
1,995
|
|
|
|
2,113,343
|
|
|
New York (State of) Dormitory Authority (New York City);
Series 2005 A, Court Facilities Lease RB
(INSAMBAC)
(a)
|
|
|
5.50
|
%
|
|
|
05/15/29
|
|
|
|
505
|
|
|
|
579,881
|
|
|
New York (State of) Dormitory Authority (State University
Educational Facilities); Series 2002 B, Third General
Resolution RB
(INSCIFG)
(a)(b)(c)
|
|
|
6.00
|
%
|
|
|
05/15/12
|
|
|
|
1,110
|
|
|
|
1,152,813
|
|
|
New York (State of) Dormitory Authority;
Series 2011 A, State Personal Income Tax General
Purpose RB
|
|
|
5.00
|
%
|
|
|
03/15/30
|
|
|
|
1,275
|
|
|
|
1,404,489
|
|
|
New York (State of) Thruway Authority;
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2009 A, Personal Income Tax RB
|
|
|
5.00
|
%
|
|
|
03/15/25
|
|
|
|
940
|
|
|
|
1,056,212
|
|
|
Series 2011
A-1,
Second
General Highway & Bridge Trust Fund RB
|
|
|
5.00
|
%
|
|
|
04/01/29
|
|
|
|
1,080
|
|
|
|
1,187,352
|
|
|
Triborough Bridge & Tunnel Authority;
Series 2002 B, Ref. General RB
|
|
|
5.25
|
%
|
|
|
11/15/19
|
|
|
|
3,000
|
|
|
|
3,174,240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
38,802,869
|
|
|
North Carolina0.93%
|
|
|
|
|
|
|
|
|
|
|
|
|
North Carolina (State of) Eastern Municipal Power Agency;
Series 2009 B, Ref. Power System RB
|
|
|
5.00
|
%
|
|
|
01/01/26
|
|
|
|
1,215
|
|
|
|
1,302,674
|
|
|
Ohio4.49%
|
|
|
|
|
|
|
|
|
|
|
|
|
American Municipal Power, Inc. (Prairie State Energy Campus);
Series 2008 A, RB
(INSAGC)
(a)(d)
|
|
|
5.25
|
%
|
|
|
02/15/33
|
|
|
|
2,400
|
|
|
|
2,527,968
|
|
|
Franklin (County of) (Ohio Health Corp.);
Series 2011 A, Hospital Facilities RB
|
|
|
5.00
|
%
|
|
|
11/15/36
|
|
|
|
750
|
|
|
|
754,117
|
|
|
Hancock (County of) (Blanchard Valley Regional Health Center);
Series 2011 A, Hospital Facilities RB
|
|
|
6.25
|
%
|
|
|
12/01/34
|
|
|
|
660
|
|
|
|
685,793
|
|
|
Lucas (County of) (ProMedica Healthcare Obligated Group);
Series 2011 A, Hospital RB
|
|
|
5.75
|
%
|
|
|
11/15/31
|
|
|
|
1,000
|
|
|
|
1,065,890
|
|
|
See accompanying Notes to Financial Statements which are an
integral part of the financial statements.
9 Invesco
Municipal Premium Income Trust
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
Interest
|
|
Maturity
|
|
Amount
|
|
|
|
|
Rate
|
|
Date
|
|
(000)
|
|
Value
|
|
Ohio(continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ohio (State of) Higher Educational Facility Commission (Summa
Health System 2010); Series 2010, Hospital
Facilities RB
|
|
|
5.75
|
%
|
|
|
11/15/40
|
|
|
$
|
1,065
|
|
|
$
|
1,044,222
|
|
|
Ohio (State of) Water Development Authority (FirstEnergy Nuclear
Generation Corp.); Series 2009 A, Ref.
PCR
(b)(c)
|
|
|
5.88
|
%
|
|
|
06/01/16
|
|
|
|
190
|
|
|
|
213,628
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,291,618
|
|
|
Oregon0.64%
|
|
|
|
|
|
|
|
|
|
|
|
|
Oregon (State of) Department of Administrative Services;
Series 2009 A, Lottery RB
|
|
|
5.25
|
%
|
|
|
04/01/24
|
|
|
|
315
|
|
|
|
362,974
|
|
|
Warm Springs (Reservation of) Confederated Tribes (Pelton Round
Butte Tribal Economic Development); Series 2009 B,
Hydroelectric
RB
(i)
|
|
|
6.38
|
%
|
|
|
11/01/33
|
|
|
|
535
|
|
|
|
540,634
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
903,608
|
|
|
Pennsylvania1.37%
|
|
|
|
|
|
|
|
|
|
|
|
|
Pennsylvania (State of) Turnpike Commission;
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2010 B-2, Sub. Conv. CAB
RB
(g)
|
|
|
0.00
|
%
|
|
|
12/01/28
|
|
|
|
650
|
|
|
|
538,928
|
|
|
Series 2010 B-2, Sub. Conv. CAB
RB
(g)
|
|
|
0.00
|
%
|
|
|
12/01/34
|
|
|
|
400
|
|
|
|
317,864
|
|
|
Philadelphia (City of) (1975 General Ordinance); Eighteenth
Series 2004, Gas Works RB
(INSAGC)
(a)
|
|
|
5.25
|
%
|
|
|
08/01/20
|
|
|
|
1,000
|
|
|
|
1,059,660
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,916,452
|
|
|
Puerto Rico2.81%
|
|
|
|
|
|
|
|
|
|
|
|
|
Puerto Rico (Commonwealth of) Electric Power Authority;
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2010 CCC, RB
|
|
|
5.25
|
%
|
|
|
07/01/27
|
|
|
|
1,000
|
|
|
|
1,020,110
|
|
|
Series 2010 XX, RB
|
|
|
5.25
|
%
|
|
|
07/01/40
|
|
|
|
600
|
|
|
|
583,884
|
|
|
Puerto Rico Sales Tax Financing Corp.;
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Series 2010 A, Sub. RB
|
|
|
5.38
|
%
|
|
|
08/01/39
|
|
|
|
575
|
|
|
|
580,008
|
|
|
First Series 2010 A, Sub. RB
|
|
|
5.50
|
%
|
|
|
08/01/42
|
|
|
|
650
|
|
|
|
659,367
|
|
|
First Series 2010 C, Sub. RB
|
|
|
5.25
|
%
|
|
|
08/01/41
|
|
|
|
1,100
|
|
|
|
1,094,192
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,937,561
|
|
|
Rhode Island2.15%
|
|
|
|
|
|
|
|
|
|
|
|
|
Rhode Island Economic Develpment Corp.; Series 2005 C,
Ref. Airport RB
(INSNATL)
(a)
|
|
|
5.00
|
%
|
|
|
07/01/28
|
|
|
|
3,000
|
|
|
|
3,014,340
|
|
|
South Carolina2.43%
|
|
|
|
|
|
|
|
|
|
|
|
|
Charleston County School District; Series 2004 A,
Unlimited Tax GO Bonds (CEPSouth Carolina School District
Enhancement Program)
|
|
|
5.00
|
%
|
|
|
02/01/22
|
|
|
|
3,000
|
|
|
|
3,239,700
|
|
|
Richland (County of); Series 2007 A, Ref.
Environmental Improvement RB
|
|
|
4.60
|
%
|
|
|
09/01/12
|
|
|
|
165
|
|
|
|
169,617
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,409,317
|
|
|
Tennessee1.30%
|
|
|
|
|
|
|
|
|
|
|
|
|
Johnson City (City of) Health & Educational Facilities
Board (Mountain States Health Alliance);
Series 2006 A, Hospital First Mortgage RB
|
|
|
5.50
|
%
|
|
|
07/01/36
|
|
|
|
1,900
|
|
|
|
1,825,311
|
|
|
Texas11.39%
|
|
|
|
|
|
|
|
|
|
|
|
|
Arlington (City of); Series 2009, Special Tax RB
|
|
|
5.00
|
%
|
|
|
08/15/28
|
|
|
|
1,000
|
|
|
|
1,043,900
|
|
|
Austin (City of); Series 2001, Ref. Water &
Wastewater System RB
(INSAGM)
(a)
|
|
|
5.13
|
%
|
|
|
05/15/27
|
|
|
|
1,475
|
|
|
|
1,476,740
|
|
|
Bexar County Health Facilities Development Corp. (Army
Retirement Residence Foundation);
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2007, Ref. RB
|
|
|
5.00
|
%
|
|
|
07/01/33
|
|
|
|
735
|
|
|
|
674,576
|
|
|
Series 2007, Ref. RB
|
|
|
5.00
|
%
|
|
|
07/01/37
|
|
|
|
580
|
|
|
|
518,218
|
|
|
Harris County Industrial Development Corp. (Deer Park Refining
Limited Partnership); Series 2006, Solid Waste Disposal RB
|
|
|
5.00
|
%
|
|
|
02/01/23
|
|
|
|
300
|
|
|
|
319,908
|
|
|
See accompanying Notes to Financial Statements which are an
integral part of the financial statements.
10 Invesco
Municipal Premium Income Trust
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
Interest
|
|
Maturity
|
|
Amount
|
|
|
|
|
Rate
|
|
Date
|
|
(000)
|
|
Value
|
|
Texas(continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Houston (City of);
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2004 A, Ref. Combined Utility System First Lien
RB
(INSNATL)
(a)
|
|
|
5.25
|
%
|
|
|
05/15/23
|
|
|
$
|
2,320
|
|
|
$
|
2,528,777
|
|
|
Series 2011 D, Combined Utility System First Lien RB
|
|
|
5.00
|
%
|
|
|
11/15/31
|
|
|
|
885
|
|
|
|
953,508
|
|
|
Series 2011 D, Combined Utility System First Lien RB
|
|
|
5.00
|
%
|
|
|
11/15/33
|
|
|
|
1,400
|
|
|
|
1,490,300
|
|
|
Lower Colorado River Authority; Series 2010 A, Ref. RB
|
|
|
5.00
|
%
|
|
|
05/15/40
|
|
|
|
450
|
|
|
|
458,717
|
|
|
Matagorda (County of) Navigation District No. 1 (AEP Texas
Central Co.); Series 2008, Ref.
PCR
(b)(c)
|
|
|
1.13
|
%
|
|
|
06/01/12
|
|
|
|
525
|
|
|
|
525,956
|
|
|
North Texas Tollway Authority;
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2008 D, Ref. First Tier System CAB RB
(INSAGC)
(a)(g)
|
|
|
0.00
|
%
|
|
|
01/01/28
|
|
|
|
4,100
|
|
|
|
1,578,541
|
|
|
Series 2008 L-2, Ref. First Tier System
RB
(b)(c)
|
|
|
6.00
|
%
|
|
|
01/01/13
|
|
|
|
1,000
|
|
|
|
1,065,970
|
|
|
Tarrant County Cultural Education Facilities Finance Corp. (Air
Force Village Obligated Group); Series 2007, Retirement
Facility RB
|
|
|
5.13
|
%
|
|
|
05/15/37
|
|
|
|
425
|
|
|
|
363,702
|
|
|
Texas Private Activity Bond Surface Transportation Corp. (NTE
Mobility Partners LLCNorth Tarrant Express Managed Lanes);
Series 2009, Sr. Lien RB
|
|
|
6.88
|
%
|
|
|
12/31/39
|
|
|
|
430
|
|
|
|
444,581
|
|
|
University of Houston System Board of Regents; Series 2008,
Ref. Consolidated RB
(INSAGM)
(a)(d)
|
|
|
5.00
|
%
|
|
|
02/15/33
|
|
|
|
2,400
|
|
|
|
2,519,304
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,962,698
|
|
|
Virgin Islands0.38%
|
|
|
|
|
|
|
|
|
|
|
|
|
Virgin Islands (Government of) Public Finance Authority (Virgin
Islands Matching Fund Loan Note); Series 2010 A,
Sr. Lien Working Capital RB
|
|
|
5.00
|
%
|
|
|
10/01/25
|
|
|
|
525
|
|
|
|
526,307
|
|
|
Washington8.43%
|
|
|
|
|
|
|
|
|
|
|
|
|
Chelan (County of) Public Utility District No. 1;
Series 2011 A, Ref.
RB
(e)
|
|
|
5.50
|
%
|
|
|
07/01/26
|
|
|
|
425
|
|
|
|
472,728
|
|
|
Goat Hill Properties (King County Governmental Office Building);
Series 2005, Lease RB
(INSNATL)
(a)
|
|
|
5.00
|
%
|
|
|
12/01/33
|
|
|
|
2,400
|
|
|
|
2,445,696
|
|
|
Grant (County of) Public Utility District No. 2;
Series 2005 A, Ref. Wanapum Hydroelectric Development
RB
(INSNATL)
(a)
|
|
|
5.00
|
%
|
|
|
01/01/34
|
|
|
|
1,930
|
|
|
|
1,957,348
|
|
|
Washington (State of); Series 2004 F, Motor Vehicle
Fuel Unlimited Tax CAB GO Bonds
(INSAMBAC)
(a)(g)
|
|
|
0.00
|
%
|
|
|
12/01/29
|
|
|
|
2,120
|
|
|
|
917,854
|
|
|
Washington (State of) Health Care Facilities Authority (Seattle
Cancer Care Alliance); Series 2008, RB
|
|
|
7.38
|
%
|
|
|
03/01/38
|
|
|
|
2,000
|
|
|
|
2,211,140
|
|
|
Washington (State of);
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 2010 A, Various Purpose Unlimited Tax GO
Bonds
(d)
|
|
|
5.00
|
%
|
|
|
08/01/29
|
|
|
|
1,710
|
|
|
|
1,865,593
|
|
|
Series 2010 A, Various Purpose Unlimited Tax GO
Bonds
(d)
|
|
|
5.00
|
%
|
|
|
08/01/30
|
|
|
|
1,795
|
|
|
|
1,945,493
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,815,852
|
|
|
TOTAL
INVESTMENTS
(j)
167.23%
(Cost $225,865,533)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
234,448,053
|
|
|
FLOATING RATE NOTE OBLIGATIONS(21.46)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes with interest rates ranging from 0.21% to 0.33% at
08/31/11
and
contractual maturities of collateral ranging from
06/01/25
to
01/01/37
(See
Note 1J)
(k)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(30,080,000
|
)
|
|
OTHER ASSETS LESS LIABILITIES2.38%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,327,819
|
|
|
PREFERRED SHARES(48.15)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(67,500,000
|
)
|
|
NET ASSETS APPLICABLE TO COMMON SHARES100.00%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
140,195,872
|
|
|
Investment Abbreviations:
|
|
|
AGC
|
|
Assured Guaranty Corp.
|
AGM
|
|
Assured Guaranty Municipal Corp.
|
AMBAC
|
|
American Municipal Bond Assurance Corp.
|
BAN
|
|
Bond Anticipation Notes
|
BHAC
|
|
Berkshire Hathaway Assurance Corp.
|
CAB
|
|
Capital Appreciation Bonds
|
CEP
|
|
Credit Enhancement Provider
|
CIFG
|
|
CIFG Assurance North America, Inc.
|
Conv.
|
|
Convertible
|
COP
|
|
Certificates of Participation
|
FGIC
|
|
Financial Guaranty Insurance Co.
|
FHA
|
|
Federal Housing Administration
|
GO
|
|
General Obligation
|
Gtd.
|
|
Guaranteed
|
IDR
|
|
Industrial Development Revenue Bonds
|
INS
|
|
Insurer
|
NATL
|
|
National Public Finance Guarantee Corp.
|
PCR
|
|
Pollution Control Revenue Bonds
|
PILOT
|
|
Payment-in-Lieu-of-Tax
|
RAB
|
|
Revenue Anticipation Bonds
|
RB
|
|
Revenue Bonds
|
Ref.
|
|
Refunding
|
Sec.
|
|
Secured
|
SGI
|
|
Syncora Guarantee, Inc.
|
Sr.
|
|
Senior
|
Sub.
|
|
Subordinated
|
See accompanying Notes to Financial Statements which are an
integral part of the financial statements.
11 Invesco
Municipal Premium Income Trust
Notes to Schedule of Investments:
|
|
|
(a)
|
|
Principal
and/or
interest payments are secured by the bond insurance company
listed.
|
(b)
|
|
Security has an irrevocable call by
the issuer or mandatory put by the holder. Maturity date
reflects such call or put.
|
(c)
|
|
Interest or dividend rate is
redetermined periodically. Rate shown is the rate in effect on
August 31, 2011.
|
(d)
|
|
Underlying security related to
Dealer Trusts entered into by the Trust. See Note 1J.
|
(e)
|
|
Security subject to the alternative
minimum tax.
|
(f)
|
|
Advance refunded; secured by an
escrow fund of U.S. Government obligations or other highly
rated collateral.
|
(g)
|
|
Zero coupon bond issued at a
discount.
|
(h)
|
|
Security is subject to a shortfall
agreement which may require the Trust to pay amounts to a
counterparty in the event of a significant decline in the market
value of the security underlying the Dealer Trusts. In case of a
shortfall, the maximum potential amount of payments the Trust
could ultimately be required to make under the agreement is
$3,350,000. However, such shortfall payment would be reduced by
the proceeds from the sale of the security underlying the Dealer
Trusts.
|
(i)
|
|
Security purchased or received in a
transaction exempt from registration under the Securities Act of
1933, as amended. The security may be resold pursuant to an
exemption from registration under the 1933 Act, typically to
qualified institutional buyers. The value of this security at
August 31, 2011 represented 0.39% of the Trusts Net
Assets.
|
(j)
|
|
This table provides a listing of
those entities that have either issued, guaranteed, backed or
otherwise enhanced the credit quality of more than 5% of the
securities held in the portfolio. In instances where the entity
has guaranteed, backed or otherwise enhanced the credit quality
of a security, it is not primarily responsible for the
issuers obligations but may be called upon to satisfy the
issuers obligations.
|
|
|
|
|
|
Entities
|
|
Percentage
|
|
National Public Finance Guarantee Corp.
|
|
|
20.1
|
%
|
|
American Municipal Bond Assurance Corp.
|
|
|
6.3
|
|
|
Assured Guaranty Municipal Corp.
|
|
|
6.0
|
|
|
|
|
|
(k)
|
|
Floating rate note obligations
related to securities held. The interest rates shown reflect the
rates in effect at August 31, 2011. At August 31,
2011, the Trusts investments with a value of $47,789,095
are held by Dealer Trusts and serve as collateral for the
$30,080,000 in the floating rate note obligations outstanding at
that date.
|
By
credit sector, based on Total Investments
as
of August 31, 2011
|
|
|
|
|
Revenue Bonds
|
|
|
81.1
|
%
|
|
General Obligation Bonds
|
|
|
14.9
|
|
|
Pre-refunded Bonds
|
|
|
4.0
|
|
|
See accompanying Notes to Financial Statements which are an
integral part of the financial statements.
12 Invesco
Municipal Premium Income Trust
Statement
of Assets and Liabilities
August 31,
2011
(Unaudited)
|
|
|
|
|
Assets:
|
Investments, at value (Cost $225,865,533)
|
|
$
|
234,448,053
|
|
|
Cash
|
|
|
605,234
|
|
|
Receivable for:
|
|
|
|
|
Investments sold
|
|
|
922,875
|
|
|
Interest
|
|
|
2,697,656
|
|
|
Investment for trustee deferred compensation and retirement plans
|
|
|
2,464
|
|
|
Other assets
|
|
|
24,438
|
|
|
Total assets
|
|
|
238,700,720
|
|
|
Liabilities:
|
Floating rate note obligations
|
|
|
30,080,000
|
|
|
Payable for:
|
|
|
|
|
Investments purchased
|
|
|
672,076
|
|
|
Dividends declared on preferred shares
|
|
|
163
|
|
|
Accrued fees to affiliates
|
|
|
7
|
|
|
Accrued other operating expenses
|
|
|
186,144
|
|
|
Trustee deferred compensation and retirement plans
|
|
|
66,458
|
|
|
Total liabilities
|
|
|
31,004,848
|
|
|
Preferred shares ($0.01 par value, authorized
1,000,000 shares, 675 issued with liquidation preference of
$100,000 per share)
|
|
|
67,500,000
|
|
|
Net assets attributable to common shares
|
|
$
|
140,195,872
|
|
|
Net assets applicable to common shares consist of:
|
Shares of beneficial interest common shares
|
|
$
|
158,048,828
|
|
|
Undistributed net investment income
|
|
|
1,473,398
|
|
|
Undistributed net realized gain (loss)
|
|
|
(27,908,874
|
)
|
|
Unrealized appreciation
|
|
|
8,582,520
|
|
|
|
|
$
|
140,195,872
|
|
|
Net assets:
|
Shares outstanding, $0.01 par value per common share with an
unlimited number of shares authorized:
|
Outstanding
|
|
|
16,666,877
|
|
|
Net asset value per common share
|
|
$
|
8.41
|
|
|
Market value per common share
|
|
$
|
7.91
|
|
|
See accompanying Notes to Financial Statements which are an
integral part of the financial statements.
13 Invesco
Municipal Premium Income Trust
Statement
of Operations
For
the six months ended August 31, 2011
(Unaudited)
|
|
|
|
|
Investment income:
|
Interest
|
|
$
|
5,538,265
|
|
|
Expenses:
|
Advisory fees
|
|
|
466,768
|
|
|
Administrative services fees
|
|
|
25,137
|
|
|
Custodian fees
|
|
|
5,355
|
|
|
Interest, facilities and maintenance fees
|
|
|
245,622
|
|
|
Transfer agent fees
|
|
|
5,194
|
|
|
Trustees and officers fees and benefits
|
|
|
46,136
|
|
|
Professional services fees
|
|
|
529,858
|
|
|
Other
|
|
|
21,081
|
|
|
Total expenses
|
|
|
1,345,151
|
|
|
Net investment income
|
|
|
4,193,114
|
|
|
Realized and unrealized gain (loss) from:
|
Net realized gain (loss) from investment securities
|
|
|
(2,871,565
|
)
|
|
Change in net unrealized appreciation of investment securities
|
|
|
12,889,693
|
|
|
Net realized and unrealized gain
|
|
|
10,018,128
|
|
|
Net increase in net assets resulting from operations
|
|
|
14,211,242
|
|
|
Distributions to preferred shareholders from net investment
income
|
|
|
(34,061
|
)
|
|
Net increase in net assets from operations applicable to common
shares
|
|
$
|
14,177,181
|
|
|
See accompanying Notes to Financial Statements which are an
integral part of the financial statements.
14 Invesco
Municipal Premium Income Trust
Statement
of Changes in Net Assets
For
the six months ended August 31, 2011, the nine months ended
February 28, 2011 and the year ended May 31,
2010
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
|
|
Nine months
|
|
|
|
|
ended
|
|
ended
|
|
Year ended
|
|
|
August 31,
|
|
February 28,
|
|
May 31,
|
|
|
2011
|
|
2011
|
|
2010
|
|
Operations:
|
Net investment income
|
|
$
|
4,193,114
|
|
|
$
|
6,610,141
|
|
|
$
|
9,278,489
|
|
|
Net realized gain (loss)
|
|
|
(2,871,565
|
)
|
|
|
(907,530
|
)
|
|
|
(1,856,135
|
)
|
|
Change in net unrealized appreciation (depreciation)
|
|
|
12,889,693
|
|
|
|
(9,325,439
|
)
|
|
|
14,019,645
|
|
|
Net increase (decrease) in net assets resulting from operations
|
|
|
14,211,242
|
|
|
|
(3,622,828
|
)
|
|
|
21,441,999
|
|
|
Distributions to preferred shareholders from net investment
income
|
|
|
(34,061
|
)
|
|
|
(105,415
|
)
|
|
|
(122,989
|
)
|
|
Net increase (decrease) in net assets from operations applicable
to common shares
|
|
|
14,177,181
|
|
|
|
(3,728,243
|
)
|
|
|
21,319,010
|
|
|
Dividends to common shareholders from net investment income
|
|
|
(4,500,058
|
)
|
|
|
(6,750,086
|
)
|
|
|
(9,000,115
|
)
|
|
Net increase (decrease) in net assets
|
|
|
9,677,123
|
|
|
|
(10,478,329
|
)
|
|
|
12,318,895
|
|
|
Net assets applicable to common shares:
|
Beginning of period
|
|
|
130,518,749
|
|
|
|
140,997,078
|
|
|
|
128,678,183
|
|
|
End of period (includes undistributed net investment income of
$1,473,398, $1,814,403 and $2,063,645, respectively)
|
|
$
|
140,195,872
|
|
|
$
|
130,518,749
|
|
|
$
|
140,997,078
|
|
|
See accompanying Notes to Financial Statements which are an
integral part of the financial statements.
15 Invesco
Municipal Premium Income Trust
Statement
of Cash Flows
For
the six months ended August 31, 2011
(Unaudited)
|
|
|
|
|
Net increase (decrease) in net assets from operations applicable
to common shares
|
|
$
|
14,177,181
|
|
|
Adjustments to reconcile the change in net assets applicable to
common shares from operations to net cash provided by operating
activities:
|
Net realized loss on investments
|
|
|
2,871,565
|
|
|
Net change in unrealized appreciation on investments
|
|
|
(12,889,693
|
)
|
|
Amortization of premium and accretion of discount
|
|
|
202,423
|
|
|
Cost of purchases of investments
|
|
|
(14,944,060
|
)
|
|
Proceeds from sales of investments
|
|
|
14,381,897
|
|
|
Increase in interest receivables and other assets
|
|
|
(55,962
|
)
|
|
Decrease in accrued expenses and other payables
|
|
|
(213,761
|
)
|
|
Net cash provided by operating activities
|
|
|
3,529,590
|
|
|
Cash flows provided by (used in) financing activities:
|
Dividends paid to common shareholders from net investment income
|
|
|
(4,502,318
|
)
|
|
Net proceeds from and repayments of floating rate note
obligations
|
|
|
120,000
|
|
|
Net cash provided by (used in) financing activities
|
|
|
(4,382,318
|
)
|
|
Net increase (decrease) in cash
|
|
|
(852,728
|
)
|
|
Cash at beginning of period
|
|
|
1,457,962
|
|
|
Cash at end of period
|
|
$
|
605,234
|
|
|
Supplemental disclosure of cash flow information:
|
Cash paid during the period for interest, facilities and
maintenance fees
|
|
$
|
131,393
|
|
|
Notes
to Financial Statements
August 31,
2011
(Unaudited)
NOTE 1Significant
Accounting Policies
Invesco Municipal Premium Income Trust (the Trust),
a Massachusetts business trust, is registered under the
Investment Company Act of 1940, as amended (the 1940
Act), as a diversified, closed-end series management
investment company.
The Trusts investment objective is to seek to
provide a high level of current income exempt from federal
income tax.
The following is a summary of the significant
accounting policies followed by the Trust in the preparation of
its financial statements.
|
|
|
A.
|
|
Security
Valuations
Securities, including
restricted securities, are valued according to the following
policy.
|
|
|
Securities are fair valued using an
evaluated quote provided by an independent pricing service
approved by the Board of Trustees. Evaluated quotes provided by
the pricing service may be determined without exclusive reliance
on quoted prices and may reflect appropriate factors such as
institution-size trading in similar groups of securities, yield,
quality, coupon rate, maturity, type of issue, individual
trading characteristics and other market data. Short-term
obligations, including commercial paper, having 60 days or
less to maturity are recorded at amortized cost which
approximates value. Securities with a demand feature exercisable
within one to seven days are valued at par. Debt securities are
subject to interest rate and credit risks. In addition, all debt
securities involve some risk of default with respect to interest
and principal payments.
|
|
|
Securities for which market quotations
either are not readily available or are unreliable are valued at
fair value as determined in good faith by or under the
supervision of the Trusts officers following procedures
approved by the Board of Trustees. Some of the factors which may
be considered in determining fair value are fundamental
analytical data relating to the investment; the nature and
duration of any restrictions on transferability or disposition;
trading in similar securities by the same issuer or comparable
companies; relevant political, economic or issuer specific news;
and other relevant factors under the circumstances.
|
|
|
Valuations change in response to many
factors including the historical and prospective earnings of the
issuer, the value of the issuers assets, general economic
conditions, interest rates, investor perceptions and market
liquidity. Because of the inherent uncertainties of valuation,
the values reflected in the financial statements may materially
differ from the value received upon actual sale of those
investments.
|
16 Invesco
Municipal Premium Income Trust
|
|
|
B.
|
|
Securities
Transactions and Investment Income
Securities transactions are accounted for on a trade date basis.
Realized gains or losses on sales are computed on the basis of
specific identification of the securities sold. Interest income
is recorded on the accrual basis from settlement date. Dividend
income (net of withholding tax, if any) is recorded on the
ex-dividend date. Bond premiums and discounts are amortized
and/or
accreted for financial reporting purposes.
|
|
|
The Trust may periodically participate
in litigation related to Trust investments. As such, the Trust
may receive proceeds from litigation settlements. Any proceeds
received are included in the Statement of Operations as realized
gain (loss) for investments no longer held and as unrealized
gain (loss) for investments still held.
|
|
|
Brokerage commissions and mark ups are
considered transaction costs and are recorded as an increase to
the cost basis of securities purchased
and/or
a
reduction of proceeds on a sale of securities. Such transaction
costs are included in the determination of net realized and
unrealized gain (loss) from investment securities reported in
the Statement of Operations and the Statement of Changes in Net
Assets and the net realized and unrealized gains (losses) on
securities per share in the Financial Highlights. Transaction
costs are included in the calculation of the Trusts net
asset value and, accordingly, they reduce the Trusts total
returns. These transaction costs are not considered operating
expenses and are not reflected in net investment income reported
in the Statement of Operations and Statement of Changes in Net
Assets, or the net investment income per share and ratios of
expenses and net investment income reported in the Financial
Highlights, nor are they limited by any expense limitation
arrangements between the Trust and the investment adviser.
|
C.
|
|
Country
Determination
For the purposes of making
investment selection decisions and presentation in the Schedule
of Investments, the investment adviser may determine the country
in which an issuer is located
and/or
credit risk exposure based on various factors. These factors
include the laws of the country under which the issuer is
organized, where the issuer maintains a principal office, the
country in which the issuer derives 50% or more of its total
revenues and the country that has the primary market for the
issuers securities, as well as other criteria. Among the
other criteria that may be evaluated for making this
determination are the country in which the issuer maintains 50%
or more of its assets, the type of security, financial
guarantees and enhancements, the nature of the collateral and
the sponsor organization. Country of issuer
and/or
credit risk exposure has been determined to be the United States
of America, unless otherwise noted.
|
D.
|
|
Distributions
The Trust declares and pays monthly dividends from net
investment income to common shareholders. Distributions from net
realized capital gain, if any, are generally paid annually and
are distributed on a pro rata basis to common and preferred
shareholders. The Trust may elect to treat a portion of the
proceeds from redemptions as distributions for federal income
tax purposes.
|
E.
|
|
Federal Income
Taxes
The Trust intends to comply with
the requirements of Subchapter M of the Internal Revenue
Code necessary to qualify as a regulated investment company and
to distribute substantially all of the Trusts taxable
earnings to shareholders. As such, the Trust will not be subject
to federal income taxes on otherwise taxable income (including
net realized capital gain) that is distributed to shareholders.
Therefore, no provision for federal income taxes is recorded in
the financial statements.
|
|
|
In addition, the Trust intends to invest
in such municipal securities to allow it to qualify to pay
shareholders exempt dividends, as defined in the
Internal Revenue Code.
|
|
|
The Trust files tax returns in the
U.S. Federal jurisdiction and certain other jurisdictions.
Generally, the Trust is subject to examinations by such taxing
authorities for up to three years after the filing of the return
for the tax period.
|
|
|
The Trust files tax returns in the
U.S. Federal jurisdiction and certain other jurisdictions.
Generally, the Trust is subject to examinations by such taxing
authorities for up to three years after the filing of the return
for the tax period.
|
F.
|
|
Interest,
Facilities and Maintenance Fees
Interest,
Facilities and Maintenance Fees include interest and related
borrowing costs such as commitment fees and other expenses
associated with lines of credit and interest and administrative
expenses related to establishing and maintaining Auction Rate
Preferred Shares and floating rate obligations, if any.
|
G.
|
|
Accounting
Estimates
The preparation of financial
statements in conformity with accounting principles generally
accepted in the United States of America (GAAP)
requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of
revenues and expenses during the reporting period including
estimates and assumptions related to taxation. Actual results
could differ from those estimates by a significant amount. In
addition, the Trust monitors for material events or transactions
that may occur or become known after the period-end date and
before the date the financial statements are released to print.
|
H.
|
|
Indemnifications
Under the Trusts organizational documents, each Trustee,
officer, employee or other agent of the Trust is indemnified
against certain liabilities that may arise out of performance of
their duties to the Trust. Additionally, in the normal course of
business, the Trust enters into contracts, including the
Trusts servicing agreements that contain a variety of
indemnification clauses. The Trusts maximum exposure under
these arrangements is unknown as this would involve future
claims that may be made against the Trust that have not yet
occurred. The risk of material loss as a result of such
indemnification claims is considered remote.
|
I.
|
|
Cash and Cash
Equivalents
For the purposes of the
Statement of Cash Flows the Trust defines Cash and Cash
Equivalents as cash (including foreign currency), money market
funds and other investments held in lieu of cash and excludes
investments made with cash collateral received.
|
J.
|
|
Floating Rate
Note Obligations
The Trust invests
in inverse floating rate securities, such as Residual Interest
Bonds (RIBs) or Tender Option Bonds
(TOBs) for investment purposes and to enhance the
yield of the Trust. Inverse floating rate investments tend to
underperform the market for fixed rate bonds in a rising
interest rate environment, but tend to outperform the market for
fixed rate bonds when interest rates decline or remain
relatively stable. Such transactions may be purchased in the
secondary market without first owning the underlying bond or by
the sale of fixed rate bonds by the Trust to special purpose
trusts established by a broker dealer (Dealer
Trusts) in exchange for cash and residual interests in the
Dealer Trusts assets and cash flows, which are in the form
of inverse floating rate securities. The Dealer Trusts finance
the purchases of the fixed rate bonds by issuing floating rate
notes to third parties and allowing the Trust to retain residual
interest in the bonds. The floating rate notes issued by the
Dealer Trusts have interest rates that reset weekly and the
floating rate note holders have the option to tender their notes
to the Dealer Trusts for redemption at par at each reset date.
The residual interests held by the Trust (inverse floating rate
investments) include the right of the Trust (1) to cause
the holders of the floating
|
17 Invesco
Municipal Premium Income Trust
|
|
|
|
|
rate notes to tender their notes at par at the next interest
rate reset date, and (2) to transfer the municipal bond
from the Dealer Trusts to the Trust, thereby collapsing the
Dealer Trusts.
|
|
|
TOBs are presently classified as private
placement securities. Private placement securities are subject
to restrictions on resale because they have not been registered
under the Securities Act of 1933, as amended or are otherwise
not readily marketable. As a result of the absence of a public
trading market for these securities, they may be less liquid
than publicly traded securities. Although these securities may
be resold in privately negotiated transactions, the prices
realized from these sales could be less than those originally
paid by the Trust or less than what may be considered the fair
value of such securities.
|
|
|
The Trust accounts for the transfer of
bonds to the Dealer Trusts as secured borrowings, with the
securities transferred remaining in the Trusts investment
assets, and the related floating rate notes reflected as Trust
liabilities under the caption
Floating rate note
obligations
on the Statement of Assets and Liabilities. The
Trust records the interest income from the fixed rate bonds
under the caption
Interest
and records the expenses
related to floating rate obligations and any administrative
expenses of the Dealer Trusts as a component of
Interest,
facilities and maintenance fees
on the Statement of
Operations.
|
|
|
The Trust generally invests in inverse
floating rate securities that include embedded leverage, thus
exposing the Trust to greater risks and increased costs. The
primary risks associated with inverse floating rate securities
are varying degrees of liquidity and the changes in the value of
such securities in response to changes in market rates of
interest to a greater extent than the value of an equal
principal amount of a fixed rate security having similar credit
quality, redemption provisions and maturity which may cause the
Trusts net asset value to be more volatile than if it had
not invested in inverse floating rate securities. In certain
instances, the short-term floating rate interests created by the
special purpose trust may not be able to be sold to third
parties or, in the case of holders tendering (or putting) such
interests for repayment of principal, may not be able to be
remarketed to third parties. In such cases, the special purpose
trust holding the long-term fixed rate bonds may be collapsed.
In the case of RIBs or TOBs created by the contribution of
long-term fixed income bonds by the Trust, the Trust will then
be required to repay the principal amount of the tendered
securities. During times of market volatility, illiquidity or
uncertainty, the Trust could be required to sell other portfolio
holdings at a disadvantageous time to raise cash to meet that
obligation.
|
K.
|
|
Futures
Contracts
The Trust may enter into
futures contracts to manage exposure to interest rate, equity
and market price movements
and/or
currency risks. A futures contract is an agreement between two
parties to purchase or sell a specified underlying security,
currency or commodity (or delivery of a cash settlement price,
in the case of an index future) for a fixed price at a future
date. The Trust currently invests only in exchange-traded
futures and they are standardized as to maturity date and
underlying financial instrument. Initial margin deposits
required upon entering into futures contracts are satisfied by
the segregation of specific securities or cash as collateral at
the futures commission merchant (broker). During the period the
futures contracts are open, changes in the value of the
contracts are recognized as unrealized gains or losses by
recalculating the value of the contracts on a daily basis.
Subsequent or variation margin payments are received or made
depending upon whether unrealized gains or losses are incurred.
These amounts are reflected as receivables or payables on the
Statement of Assets and Liabilities. When the contracts are
closed or expire, the Trust recognizes a realized gain or loss
equal to the difference between the proceeds from, or cost of,
the closing transaction and the Trusts basis in the
contract. The net realized gain (loss) and the change in
unrealized gain (loss) on futures contracts held during the
period is included on the Statement of Operations. The primary
risks associated with futures contracts are market risk and the
absence of a liquid secondary market. If the Trust were unable
to liquidate a futures contract
and/or
enter
into an offsetting closing transaction, the Trust would continue
to be subject to market risk with respect to the value of the
contracts and continue to be required to maintain the margin
deposits on the futures contracts. Futures contracts have
minimal counterparty risk since the exchanges
clearinghouse, as counterparty to all exchange-traded futures,
guarantees the futures against default. Risks may exceed amounts
recognized in the Statement of Assets and Liabilities.
|
L.
|
|
Other
Risks
The value of, payment of interest
on, repayment of principal for and the ability to sell a
municipal security may be affected by constitutional amendments,
legislative enactments, executive orders, administrative
regulations, voter initiatives and the economics of the regions
in which the issuers are located.
|
|
|
Since, many municipal securities are
issued to finance similar projects, especially those relating to
education, health care, transportation and utilities, conditions
in those sectors can affect the overall municipal securities
market and a Trusts investments in municipal securities.
|
|
|
There is some risk that a portion or all
of the interest received from certain tax-free municipal
securities could become taxable as a result of determinations by
the Internal Revenue Service.
|
NOTE 2Advisory
Fees and Other Fees Paid to Affiliates
Effective June 1, 2010, the Trust has entered into a master
investment advisory agreement with Invesco Advisers, Inc. (the
Adviser or Invesco). Under the terms of
the investment advisory agreement, the Trust pays an advisory
fee to the Adviser based on the annual rate 0.40% of the
Trusts average weekly net assets including current
preferred shares and a portion of floating rate and dealer trust
obligations that the Trust entered into to retire outstanding
preferred shares of the Trust.
Under the terms of a master
sub-advisory
agreement between the Adviser and each of Invesco Asset
Management Deutschland GmbH, Invesco Asset Management Limited,
Invesco Asset Management (Japan) Limited, Invesco Australia
Limited, Invesco Hong Kong Limited, Invesco Senior Secured
Management, Inc. and Invesco Canada Ltd. (collectively, the
Affiliated
Sub-Advisers)
the Adviser, not the Trust, may pay 40% of the fees paid to the
Adviser to any such Affiliated
Sub-Adviser(s)
that provide(s) discretionary investment management services to
the Trust based on the percentage of assets allocated to such
Sub-Adviser(s).
Effective June 1, 2010, the Adviser has
contractually agreed, through at least June 30, 2012, to
waive advisory fees
and/or
reimburse expenses to the extent necessary to limit the
Trusts expenses (excluding certain items discussed below)
to 1.03%. In determining the Advisers obligation to waive
advisory fees
and/or
reimburse expenses, the following expenses are not taken into
account, and could cause the Trusts expenses to exceed the
limit reflected above: (1) interest, facilities and
maintenance fees; (2) taxes; (3) dividend expense on
short sales; (4) extraordinary or non-routine items; and
(5) expenses that the Trust has incurred but did not
actually pay because of an expense offset arrangement. Unless
the Board of Trustees and Invesco mutually agree to amend or
continue the
18 Invesco
Municipal Premium Income Trust
fee waiver agreement, it will terminate on June 30, 2012.
The Adviser did not waive fees
and/or
reimburse expenses during the period under this expense
limitation.
The Trust has entered into a master administrative
services agreement with Invesco pursuant to which the Trust has
agreed to pay Invesco for certain administrative costs incurred
in providing accounting services to the Trust. For the six
months ended August 31, 2011, expenses incurred under these
agreements are shown in the Statement of Operations as
administrative services fees. Also, Invesco has entered into
service agreements whereby State Street Bank and
Trust Company (SSB) serves as the custodian and
fund accountant and provides certain administrative services to
the Trust. Also, Invesco has entered into service agreements
whereby State Street Bank and Trust Company
(SSB) serves as the custodian, fund accountant and
provides certain administrative services to the Trust.
Certain officers and trustees of the Trust are
officers and directors of Invesco.
NOTE 3Additional
Valuation Information
GAAP defines fair value as the price that would be received to
sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date,
under current market conditions. GAAP establishes a hierarchy
that prioritizes the inputs to valuation methods giving the
highest priority to readily available unadjusted quoted prices
in an active market for identical assets (Level 1) and
the lowest priority to significant unobservable inputs
(Level 3) generally when market prices are not readily
available or are unreliable. Based on the valuation inputs, the
securities or other investments are tiered into one of three
levels. Changes in valuation methods may result in transfers in
or out of an investments assigned level:
|
|
|
|
Level 1
|
Prices are determined using quoted prices in an active market
for identical assets.
|
|
Level 2
|
Prices are determined using other significant observable inputs.
Observable inputs are inputs that other market participants may
use in pricing a security. These may include quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, yield curves, loss severities, default rates, discount
rates, volatilities and others.
|
|
Level 3
|
Prices are determined using significant unobservable inputs. In
situations where quoted prices or observable inputs are
unavailable (for example, when there is little or no market
activity for an investment at the end of the period),
unobservable inputs may be used. Unobservable inputs reflect the
Trusts own assumptions about the factors market
participants would use in determining fair value of the
securities or instruments and would be based on the best
available information.
|
The following is a summary of the tiered valuation
input levels, as of August 31, 2011. The level assigned to
the securities valuations may not be an indication of the risk
or liquidity associated with investing in those securities.
Because of the inherent uncertainties of valuation, the values
reflected in the financial statements may materially differ from
the value received upon actual sale of those investments.
During the six months ended August 31, 2011,
there were no significant transfers between investment levels.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Municipal Obligations
|
|
$
|
|
|
|
$
|
234,448,053
|
|
|
$
|
|
|
|
$
|
234,448,053
|
|
|
NOTE 4Trustees
and Officers Fees and Benefits
Trustees and Officers Fees and Benefits
include amounts accrued by the Trust to pay remuneration to
certain Trustees and Officers of the Trust. Trustees have the
option to defer compensation payable by the Trust, and
Trustees and Officers Fees and Benefits
also include amounts accrued by the Trust to fund such deferred
compensation amounts. Those Trustees who defer compensation have
the option to select various Invesco Trusts in which their
deferral accounts shall be deemed to be invested. Finally,
certain current Trustees are eligible to participate in a
retirement plan that provides for benefits to be paid upon
retirement to Trustees over a period of time based on the number
of years of service. The Trust may have certain former Trustees
who also participate in a retirement plan and receive benefits
under such plan. Trustees and Officers Fees
and Benefits include amounts accrued by the Trust to fund
such retirement benefits. Obligations under the deferred
compensation and retirement plans represent unsecured claims
against the general assets of the Trust.
During the six months ended August 31, 2011,
the Trust paid legal fees of $5,835 for services rendered by
Kramer, Levin, Naftalis & Frankel LLP as counsel to
the Independent Trustees. A partner of that firm is a Trustee of
the Trust.
NOTE 5Cash
Balances and Borrowings
The Trust is permitted to temporarily carry a negative or
overdrawn balance in its account with SSB, the custodian bank.
To compensate the custodian bank for such overdrafts, the
overdrawn Trust may either (1) leave funds as a
compensating balance in the account so the custodian bank can be
compensated by earning the additional interest; or
(2) compensate by paying the custodian bank at a rate
agreed upon by the custodian bank and Invesco, not to exceed the
contractually agreed upon rate.
Inverse floating rate obligations resulting from the
transfer of bonds to Dealer Trusts are accounted for as secured
borrowings. The average floating rate notes outstanding and
average annual interest and fees related to inverse floating
rate note obligations during the six months ended
August 31, 2011 were $30,164,000 and 0.87%, respectively.
NOTE 6Tax
Information
The amount and character of income and gains to be distributed
are determined in accordance with income tax regulations, which
may differ from generally accepted accounting principles.
Reclassifications are made to the Trusts capital accounts
to reflect income and gains available for distribution (or
available capital loss carryforward) under income tax
regulations. The tax character of distributions paid during the
year and the tax components of net assets will be reported at
the Trusts fiscal year-end.
19 Invesco
Municipal Premium Income Trust
Capital loss carryforward is calculated and reported
as of a specific date. Results of transactions and other
activity after that date may affect the amount of capital loss
carryforward actually available for the Trust to utilize. The
ability to utilize capital loss carryforward in the future may
be limited under the Internal Revenue Code and related
regulations based on the results of future transactions.
The Trust had a capital loss carryforward as of
February 28, 2011 which expires as follows:
|
|
|
|
|
|
|
Capital Loss
|
Expiration
|
|
Carryforward*
|
|
February 28, 2016
|
|
$
|
841,832
|
|
|
February 28, 2017
|
|
|
4,084,160
|
|
|
February 28, 2018
|
|
|
19,280,398
|
|
|
February 28, 2019
|
|
|
285,357
|
|
|
Total capital loss carryforward
|
|
$
|
24,491,747
|
|
|
|
|
*
|
Capital loss carryforward as of the
date listed above is reduced for limitations, if any, to the
extent required by the Internal Revenue Code.
|
NOTE 7Investment
Securities
The aggregate amount of investment securities (other than
short-term securities, U.S. Treasury obligations and money
market funds, if any) purchased and sold by the Trust during the
six months ended August 31, 2011 was $20,995,524 and
$15,222,539, respectively. Cost of investments on a tax basis
includes the adjustments for financial reporting purposes as of
the most recently completed Federal income tax reporting
period-end.
|
|
|
|
|
Unrealized
Appreciation (Depreciation) of Investment Securities on a Tax
Basis
|
|
Aggregate unrealized appreciation of investment securities
|
|
$
|
10,638,422
|
|
|
Aggregate unrealized (depreciation) of investment securities
|
|
|
(1,913,683
|
)
|
|
Net unrealized appreciation of investment securities
|
|
$
|
8,724,739
|
|
|
Cost of investments for tax purposes is $225,723,314.
|
NOTE 8Preferred
Shares of Beneficial Interest
The Trust has issued Auction Rate Preferred Shares
(preferred shares) which have a liquidation value of
$100,000 per share plus the redemption premium, if any, plus
accumulated but unpaid dividends, whether or not declared,
thereon to the date of distribution. The Trust may redeem such
shares, in whole or in part, at the original purchase price of
$100,000 per share plus accumulated but unpaid dividends,
whether or not declared, thereon to the date of redemption.
Historically, the Trust paid annual fees equivalent
to 0.25% of the preferred share liquidation value for the
remarketing efforts associated with the preferred auction.
Effective March 31, 2009, the Trust decreased this amount
to 0.15% due to auction failures. In the future, if auctions no
longer fail, the Trust may return to an annual fee payment of
0.25% of the preferred share liquidation value. These fees are
included as a component of Preferred share
maintenance expense on the Statement of Operations.
Dividends, which are cumulative, are reset through
auction procedures.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount
|
|
|
|
|
|
Range of
|
Series
|
|
Shares
|
|
(000s
omitted)
|
|
Rate
|
|
Reset
Date
|
|
Dividend
Rates
|
|
A
|
|
|
135
|
|
|
$
|
13,500
|
|
|
|
0.088
|
%
|
|
|
09/06/2011
|
|
|
|
0.033-0.198
|
%
|
|
B
|
|
|
135
|
|
|
|
13,500
|
|
|
|
0.088
|
|
|
|
09/06/2011
|
|
|
|
0.033-0.198
|
|
|
C
|
|
|
135
|
|
|
|
13,500
|
|
|
|
0.088
|
|
|
|
09/06/2011
|
|
|
|
0.033-0.198
|
|
|
D
|
|
|
135
|
|
|
|
13,500
|
|
|
|
0.088
|
|
|
|
09/06/2011
|
|
|
|
0.033-0.198
|
|
|
E
|
|
|
135
|
|
|
|
13,500
|
|
|
|
0.088
|
|
|
|
09/06/2011
|
|
|
|
0.033-0.198
|
|
|
|
|
|
|
|
As of August 31, 2011.
|
|
|
For the six months ended
August 31, 2011.
|
Subsequent to August 31, 2011 and up through
October 01, 2011, the Trust paid dividends to preferred
shareholders at rates ranging from 0.033% to 0.099% in the
aggregate amount of $3,848.
The Trust is subject to certain restrictions
relating to the preferred shares. Failure to comply with these
restrictions could preclude the Trust from declaring any
distributions to common shareholders or purchasing common shares
and/or
could
trigger the mandatory redemption of preferred shares at
liquidation value.
Beginning February 15, 2008 and continuing
through November 30, 2010, all series of preferred shares
of the Trust were not successfully remarketed. As a result, the
dividend rates of these preferred shares were reset to the
maximum applicable rate.
The preferred shares, which are entitled to one vote
per share, generally vote with the common shares but vote
separately as a class to elect two Trustees and on any matters
affecting the rights of the preferred shares.
The preferred shares are not listed on an exchange.
Investors in preferred shares may participate in auctions
through authorized broker-dealers; however, such broker-dealers
are not required to maintain a secondary market in preferred
shares, and there can be no assurance that a secondary market
will develop, or if it does develop, a secondary market may not
provide you with liquidity. When a preferred share auction
fails, investors may not be able to sell any or all of their
20 Invesco
Municipal Premium Income Trust
preferred shares and because of the nature of the market for
preferred shares, investors may receive less than the price paid
for their preferred shares if sold outside of the auction.
The Trust entered into additional floating rate note
and dealer trust obligations as an alternative form of leverage
in order to redeem and to retire a portion of its preferred
shares. Transactions in preferred shares were as follows:
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
Value
|
|
Outstanding at February 28, 2011
|
|
|
675
|
|
|
$
|
67,500,000
|
|
|
Shares retired
|
|
|
|
|
|
|
|
|
|
Outstanding at August 31, 2011
|
|
|
675
|
|
|
$
|
67,500,000
|
|
|
NOTE 9Common
Shares of Beneficial Interest
Transactions in common shares of beneficial interest were as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
August 31,
2011
|
|
February 28,
2011
|
|
May 31,
2010
|
|
Beginning shares
|
|
|
16,666,877
|
|
|
|
16,666,877
|
|
|
|
16,666,877
|
|
|
Shares issued through dividend reinvestment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending shares
|
|
|
16,666,877
|
|
|
|
16,666,877
|
|
|
|
16,666,877
|
|
|
The Trustees have approved share repurchases whereby
the Trust may, when appropriate, purchase shares in the open
market or in privately negotiated transactions at a price not
above market value or net asset value, whichever is lower at the
time of purchase.
NOTE 10Dividends
The Trust declared the following dividends to common
shareholders from net investment income subsequent to
August 31, 2011:
|
|
|
|
|
|
|
|
|
|
|
|
|
Declaration
Date
|
|
Amount Per
Share
|
|
Record
Date
|
|
Payable
Date
|
|
September 1, 2011
|
|
$
|
0.045
|
|
|
|
September 15, 2011
|
|
|
|
September 30, 2011
|
|
|
September 30, 2011
|
|
|
0.045
|
|
|
|
October 14, 2011
|
|
|
|
October 31, 2011
|
|
|
21 Invesco
Municipal Premium Income Trust
NOTE 11Financial
Highlights
The following schedule presents financial highlights for a share
of the Trust outstanding throughout the periods indicated.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
|
|
Nine months
|
|
|
|
|
|
|
|
|
|
|
ended
|
|
ended
|
|
|
|
|
|
|
|
|
|
|
August 31,
|
|
February 28,
|
|
Year ended
May 31,
|
|
|
2011
|
|
2011
|
|
2010
|
|
2009
|
|
2008
|
|
2007
|
|
Net asset value per common share, beginning of period
|
|
$
|
7.83
|
|
|
$
|
8.46
|
|
|
$
|
7.72
|
|
|
$
|
9.26
|
|
|
$
|
10.05
|
|
|
$
|
10.13
|
|
|
Net investment
income
(a)
|
|
|
0.25
|
|
|
|
0.40
|
|
|
|
0.56
|
|
|
|
0.62
|
|
|
|
0.67
|
|
|
|
0.66
|
|
|
Net gains (losses) on securities (both realized and unrealized)
|
|
|
0.60
|
|
|
|
(0.62
|
)
|
|
|
0.73
|
|
|
|
(1.60
|
)
|
|
|
(0.78
|
)
|
|
|
0.08
|
|
|
Distributions paid to preferred shareholders from net investment
income
|
|
|
(0.00
|
)
|
|
|
(0.01
|
)
|
|
|
(0.01
|
)
|
|
|
(0.06
|
)
|
|
|
(0.20
|
)
|
|
|
(0.20
|
)
|
|
Total income (loss) from investment operations
|
|
|
0.85
|
|
|
|
(0.23
|
)
|
|
|
1.28
|
|
|
|
(1.04
|
)
|
|
|
(0.31
|
)
|
|
|
0.54
|
|
|
Less distributions to common shareholders from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from net investment income
|
|
|
(0.27
|
)
|
|
|
(0.40
|
)
|
|
|
(0.54
|
)
|
|
|
(0.50
|
)
|
|
|
(0.46
|
)
|
|
|
(0.50
|
)
|
|
Distributions from net realized gains
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.00
|
)
|
|
|
(0.04
|
)
|
|
|
(0.14
|
)
|
|
Total distributions to common shareholders
|
|
|
(0.27
|
)
|
|
|
(0.40
|
)
|
|
|
(0.54
|
)
|
|
|
(0.50
|
)
|
|
|
(0.50
|
)
|
|
|
(0.64
|
)
|
|
Anti-dilutive effect of shares
repurchased
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.00
|
(b)
|
|
|
0.02
|
|
|
|
0.02
|
|
|
Net asset value per common share, end of period
|
|
$
|
8.41
|
|
|
$
|
7.83
|
|
|
$
|
8.46
|
|
|
$
|
7.72
|
|
|
$
|
9.26
|
|
|
$
|
10.05
|
|
|
Market value, end of period
|
|
$
|
7.91
|
|
|
$
|
7.53
|
|
|
$
|
8.06
|
|
|
$
|
7.36
|
|
|
$
|
8.34
|
|
|
$
|
9.49
|
|
|
Net asset value, total
return
(c)
|
|
|
11.54
|
%
|
|
|
(2.73
|
)%
|
|
|
17.42
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total return at market
value
(c)
|
|
|
8.84
|
%
|
|
|
(1.82
|
)%
|
|
|
17.34
|
%
|
|
|
(4.91
|
)%
|
|
|
(6.86
|
)%
|
|
|
11.22
|
%
|
|
Net assets applicable to common shares, end of period
(000s omitted)
|
|
$
|
140,196
|
|
|
$
|
130,519
|
|
|
$
|
140,997
|
|
|
$
|
128,678
|
|
|
$
|
154,430
|
|
|
$
|
171,138
|
|
|
Portfolio turnover
rate
(d)
|
|
|
7
|
%
|
|
|
5
|
%
|
|
|
12
|
%
|
|
|
17
|
%
|
|
|
5
|
%
|
|
|
13
|
%
|
|
Ratios/supplemental data based on average net assets applicable
to common shares:
|
Ratio of
expenses
(e)
|
|
|
1.99
|
%
(g)
|
|
|
1.66
|
%
(h)
|
|
|
1.35
|
%
|
|
|
1.78
|
%
(i)
|
|
|
1.58
|
%
(i)
|
|
|
1.41
|
%
(i)
|
|
Ratio of expenses excluding interest, facilities and maintenance
fees
(e)(f)
|
|
|
1.63
|
%
(g)
|
|
|
1.37
|
%
(h)
|
|
|
1.12
|
%
|
|
|
1.23
|
%
(i)
|
|
|
1.12
|
%
(i)
|
|
|
1.07
|
%
(i)
|
|
Ratio of net investment income before preferred share dividends
|
|
|
4.13
|
%
(g)
|
|
|
6.38
|
%
(h)
|
|
|
6.86
|
%
|
|
|
7.96
|
%
(i)
|
|
|
7.05
|
%
(i)
|
|
|
6.50
|
%
(i)
|
|
Preferred share dividends
|
|
|
0.03
|
%
(g)
|
|
|
0.10
|
%
(h)
|
|
|
0.09
|
%
|
|
|
0.79
|
%
|
|
|
2.11
|
%
|
|
|
2.00
|
%
|
|
Ratio of net investment income after preferred share dividends
|
|
|
4.10
|
%
(g)
|
|
|
6.28
|
%
(h)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rebate from Morgan Stanley affiliate
|
|
|
|
%
|
|
|
|
%
|
|
|
|
%
|
|
|
0.00
|
%
(j)
|
|
|
0.00
|
%
(j)
|
|
|
0.00
|
%
(j)
|
|
Senior securities:
|
Total amount of preferred shares outstanding (000s omitted)
|
|
$
|
67,500
|
|
|
$
|
67,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset coverage per preferred
share
(k)
|
|
$
|
307,698
|
|
|
$
|
293,361
|
|
|
|
309
|
%
|
|
|
268
|
%
|
|
|
254
|
%
|
|
|
271
|
%
|
|
Liquidating preference per preferred share
|
|
$
|
100,000
|
|
|
$
|
100,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Calculated using average number of
common shares outstanding.
|
(b)
|
|
Amount is less than $0.005.
|
(c)
|
|
Net asset value return includes
adjustments in accordance with accounting principles generally
accepted in the United States of America and measures the change
in common shares value over the period indicated, taking
into account dividends are reinvested. Market value total return
is computed based on the New York Stock Exchange market price of
the Trusts common shares and excludes the effects of
brokerage commissions. Dividends and distributions, if any, are
assumed, for purposes of this calculation, to be reinvested at
prices obtained under the Trusts dividend reinvestment
plan.
|
(d)
|
|
Portfolio turnover is not
annualized for periods less than one year, if applicable.
|
(e)
|
|
Ratios do not reflect the effect of
dividend payments to preferred shareholders.
|
(f)
|
|
For the years ended
October 31, 2010 and prior, ratio does not exclude
facilities and maintenance fees.
|
(g)
|
|
Ratios are annualized and based on
average daily net assets applicable to common shares (000s
omitted) of $202,195,048.
|
(h)
|
|
Annualized.
|
(i)
|
|
The ratios reflect the rebate of
certain Trust expenses in connection with investments in an
affiliate during the period. The effect of the rebate on the
ratios is disclosed in the above table as Rebate from
Morgan Stanley affiliate.
|
(j)
|
|
Amount is less than 0.005%.
|
(k)
|
|
Calculated by subtracting the
Trusts total liabilities (not including the preferred
shares) from the Trusts total assets and dividing this by
the number of preferred shares outstanding. For periods prior to
February 28, 2011, calculated by subtracting the
Trusts total liabilities (not including the preferred
shares) from the Trusts total assets and dividing by
preferred shares at liquidation value.
|
22 Invesco
Municipal Premium Income Trust
NOTE 12Legal
Proceedings
Terms used in the Legal Proceedings Note are defined terms
solely for the purpose of this note.
Pending Litigation and Regulatory Inquiries
On January 17, 2011, a Consolidated Amended Shareholder
Derivative Complaint entitled
Curbow Family, LLC, et al. v.
Morgan Stanley Investment Advisors, Inc.
, was filed on
behalf of Invesco Insured Municipal Income Trust and Invesco
Municipal Premium Income Trust (the Trusts) against
Morgan Stanley Investment Advisors, Inc., Morgan Stanley and
certain current and former executive officers of the Trusts
(collectively, the Defendants) alleging that they
breached their fiduciary duties to common shareholders by
causing the Trusts to redeem Auction Rate Preferred Securities
(ARPS) at their liquidation value. Specifically, the
shareholders claim that the board and officers had no obligation
to provide liquidity to the ARPS shareholders, the redemptions
were improperly motivated to benefit the prior adviser by
preserving business relationships with the ARPS holders, i.e.,
institutional investors, and the market value and fair value of
the ARPS were less than par at the time they were redeemed. The
Complaint alleges that the redemption of the ARPS occurred at
the expense of the Trusts and their common shareholders. This
Complaint amends and consolidates two separate complaints that
were filed by Curbow Family LLC and Elsie Mae Melms Revocable
Living Trust on July 22, 2010 and August 3, 2010,
respectively. Each of the Trusts initially received a demand
letter from the plaintiffs on April 8, 2010. Plaintiffs
seek judgment that: 1) orders Defendants to refrain from
redeeming any ARPS at their liquidation value using Trusts
assets; 2) awards monetary damages against all Defendants,
individually, jointly or severally, in favor of the Trusts, for
all losses and damages allegedly suffered as a result of the
redemptions of ARPS at their liquidation value; 3) grants
appropriate equitable relief to remedy the Defendants
breaches of fiduciary duties; and 4) awards to Plaintiffs
the costs and disbursements of the action. The Board formed a
Special Litigation Committee (SLC) to investigate
these claims and to make a recommendation to the Board regarding
whether pursuit of these claims is in the best interests of the
Trusts. After reviewing the findings of the SLC, the Board
announced on July 12, 2011, that it had adopted the
SLCs recommendation to seek dismissal of the action. On
October 4, 2011, Invesco filed a motion to dismiss. This
matter is pending. The Trust has incurred $495,031 in expenses
relating to these matters during the period ended
August 31, 2011.
Management of Invesco and the Trust believe that the
outcome of the proceedings described above will have no material
adverse effect on the Trust or on the ability of Invesco to
provide ongoing services to the Trust.
23 Invesco
Municipal Premium Income Trust
Approval
of Investment Advisory and
Sub-Advisory
Contracts
The Board of Trustees (the Board) of Invesco Municipal Premium
Income Trust is required under the Investment Company Act of
1940, as amended, to approve annually the renewal of the Invesco
Municipal Premium Income Trust (the Fund) investment advisory
agreement with Invesco Advisers, Inc. (Invesco Advisers) and the
Master Intergroup
Sub-Advisory
Contract for Mutual Funds (the
sub-advisory
contracts) with Invesco Asset Management Deutschland GmbH,
Invesco Asset Management Limited, Invesco Asset Management
(Japan) Limited, Invesco Australia Limited, Invesco Hong Kong
Limited, Invesco Senior Secured Management, Inc. and Invesco
Canada Ltd. (collectively, the Affiliated
Sub-Advisers).
During contract renewal meetings held on June
14-15,
2011,
the Board as a whole, and the disinterested or
independent Trustees, who comprise 80% of the Board,
voting separately, approved the continuance of the Funds
investment advisory agreement and the
sub-advisory
contracts for another year, effective July 1, 2011. In
doing so, the Board considered the process that it follows in
reviewing and approving the Funds investment advisory
agreement and
sub-advisory
contracts and the information that it is provided. The Board
determined that the Funds investment advisory agreement
and the
sub-advisory
contracts are in the best interests of the Fund and its
shareholders and the compensation to Invesco Advisers and the
Affiliated
Sub-Advisers
under the agreements is fair and reasonable.
The Boards
Fund Evaluation Process
The Boards Investments Committee has established three
Sub-Committees,
each of which is responsible for overseeing the management of a
number of the closed-end funds and all of the open-end funds
advised by Invesco Advisers (the Invesco Funds). The
Sub-Committees
meet throughout the year to review the performance of their
assigned funds, including reviewing materials prepared under the
direction of the independent Senior Officer, an officer of the
Invesco Funds who reports directly to the independent Trustees.
Over the course of each year, the
Sub-Committees
meet with portfolio managers for their assigned Invesco Funds
and other members of management to review the performance,
investment objective(s), policies, strategies, limitations and
investment risks of these funds. The
Sub-Committees
meet regularly and at designated contract renewal meetings each
year to conduct a review of the performance, fees, expenses and
other matters related to their assigned Invesco Funds. Each
Sub-Committee
recommends to the Investments Committee, which in turn
recommends to the full Board, whether to approve the continuance
of each Invesco Funds investment advisory agreement and
sub-advisory
contracts for another year.
During the contract renewal process, the Trustees
receive comparative performance and fee data regarding the
Invesco Funds prepared by Invesco Advisers and an independent
company, Lipper, Inc. (Lipper). The Trustees also receive an
independent written evaluation from the Senior Officer. The
Senior Officers evaluation is prepared as part of his
responsibility to manage the process by which the Invesco
Funds proposed management fees are negotiated during the
annual contract renewal process to ensure they are negotiated in
a manner that is at arms length and reasonable. The
independent Trustees are assisted in their annual evaluation of
the Funds investment advisory agreement by the Senior
Officer and by independent legal counsel. The independent
Trustees also discuss the continuance of the investment advisory
agreement and
sub-advisory
contracts in private sessions with the Senior Officer and
counsel.
In evaluating the fairness and reasonableness of the
Funds investment advisory agreement and
sub-advisory
contracts, the Board considered, among other things, the factors
discussed below. The Trustees recognized that the advisory fees
for the Invesco Funds include advisory fees that are the result
of years of review and negotiation between the Trustees and
Invesco Advisers as well as advisory fees inherited from Morgan
Stanley and Van Kampen funds following the acquisition of the
retail mutual fund business of Morgan Stanley (the Morgan
Stanley Transaction). The Trustees deliberations and
conclusions in a particular year may be based in part on their
deliberations and conclusions regarding these same arrangements
throughout the year and in prior years. One Trustee may have
weighed a particular piece of information differently than
another Trustee.
The discussion below serves as the Senior
Officers independent written evaluation with respect to
the Funds investment advisory agreement as well as a
discussion of the material factors and related conclusions that
formed the basis for the Boards approval of the
Funds investment advisory agreement and
sub-advisory
contracts. Unless otherwise stated, this information is current
as of June 15, 2011, and may not reflect consideration of
factors that became known to the Board after that date,
including, for example, changes to the Funds performance,
advisory fees, expense limitations
and/or
fee
waivers.
Factors and
Conclusions and Summary of Independent Written Fee
Evaluation
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A.
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Nature, Extent
and Quality of Services Provided by Invesco Advisers and the
Affiliated
Sub-Advisers
|
The Board reviewed the advisory services provided to the Fund by
Invesco Advisers under the Funds investment advisory
agreement, the performance of Invesco Advisers in providing
these services, and the credentials and experience of the
officers and employees of Invesco Advisers who provide these
services, including the Funds portfolio manager or
managers, with whom the Board has met since the closing of the
Morgan Stanley Transaction. The Boards review of the
qualifications of Invesco Advisers to provide advisory services
included the Boards consideration of Invesco
Advisers performance and investment process oversight,
independent credit analysis and investment risk management.
In determining whether to continue the Funds
investment advisory agreement, the Board considered the prior
relationship between Invesco Advisers and the Fund, as well as
the Boards knowledge of Invesco Advisers operations,
and concluded that it is beneficial to maintain the current
relationship, in part, because of such knowledge. The Board also
considered services that Invesco Advisers and its affiliates
provide to the Invesco Funds such as various back office support
functions, equity and fixed income trading operations, internal
audit, and legal and compliance. The Board concluded that the
nature, extent and quality of the services provided to the Fund
by Invesco Advisers are appropriate and satisfactory and the
advisory services are provided in accordance with the terms of
the Funds investment advisory agreement.
The Board reviewed the services provided by the
Affiliated
Sub-Advisers
under the
sub-advisory
contracts and the credentials and experience of the officers and
employees of the Affiliated
Sub-Advisers
who provide these services. The Board concluded that the
sub-advisory
contracts benefit the Fund and its shareholders by permitting
Invesco Advisers to use the resources and talents of the
Affiliated
Sub-Advisers
in managing the Fund. The Board concluded that the nature,
extent and quality of the services provided by the Affiliated
Sub-Advisers
are appropriate and satisfactory and in accordance with the
terms of the Funds
sub-advisory
contracts.
The Board considered Fund performance as a relevant factor in
considering whether to approve the investment advisory
agreement. The Board did
24 Invesco
Municipal Premium Income Trust
not view Fund performance as a relevant factor in considering
whether to approve the
sub-advisory
contracts for the Fund, as no Affiliated
Sub-Adviser
currently manages assets of the Fund.
The Board compared the Funds performance
during the past one, three and five calendar years to the
performance of funds in the Lipper performance universe and
against the Lipper Closed-End General Municipal Debt
Funds (Leveraged) Index. The Board noted that the Funds
performance was in the third quintile of its performance
universe for the one year period and the fifth quintile for the
three and five year periods (the first quintile being the best
performing funds and the fifth quintile being the worst
performing funds). The Board noted that the Funds
performance was below the performance of the Index for the one,
three and five year periods. Although the independent written
evaluation of the Funds Senior Officer only considered
Fund performance through the most recent calendar year, the
Trustees also reviewed more recent Fund performance and this
review did not change their conclusions.
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C.
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Advisory and
Sub-Advisory
Fees and Fee Waivers
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The Board compared the Funds contractual advisory fee rate
to the contractual advisory fee rates of funds in the
Funds Lipper expense group at a common asset level. The
Board noted that the Funds contractual advisory fee rate
was below the median contractual advisory fee rate of funds in
its expense group. The Board also reviewed the methodology used
by Lipper in providing expense group information, which includes
using audited financial data from the most recent annual report
of each fund in the expense group that was publicly available as
of the end of the past calendar year and including only one fund
per investment adviser. The Board noted that comparative data is
as of varying dates, which may affect the comparability of data
during times of market volatility.
The Board also compared the Funds effective
fee rate (the advisory fee after advisory fee waivers and before
expense limitations/waivers) to the advisory fee rates of other
mutual funds advised by Invesco Advisers and its affiliates with
investment strategies comparable to those of the Fund. The Board
noted that the Funds rate was below the rates of five
closed-end funds and above the rate of three closed-end funds
with comparable investment strategies.
Other than the mutual funds described above, the
Board noted that Invesco Advisers and the Affiliated
Sub-Advisers
do not manage other mutual funds or client accounts in a manner
substantially similar to the management of the Fund.
The Board noted that as part of the Morgan Stanley
Transaction, Invesco Advisers has contractually agreed to waive
fees
and/or
limit expenses of the Fund through at least June 30, 2012
in an amount necessary to limit total annual operating expenses
to a specified percentage of average daily net assets for each
class of the Fund. The Board noted that at the current expense
ratio for the Fund, this expense waiver does not have any impact.
The Board also considered the services provided by
the Affiliated
Sub-Advisers
pursuant to the
sub-advisory
contracts, as well as the allocation of fees between Invesco
Advisers and the Affiliated
Sub-Advisers
pursuant to the
sub-advisory
contracts. The Board noted that Invesco Advisers provides
services to
sub-advised
Invesco Funds, including oversight of the Affiliated
Sub-Advisers
as well as the additional services described above other than
day-to-day
that Invesco Advisers provides services to
sub-advised
Invesco Funds, including oversight of the Affiliated
Sub-Advisers
as well as the additional services described above other than
day-to-day
portfolio management. The Board also noted that the
sub-advisory
fees have no direct effect on the Fund or its shareholders, as
they are paid by Invesco Advisers to the Affiliated
Sub-Advisers.
Based upon the information and considerations
described above, the Board concluded that the Funds
advisory and
sub-advisory
fees are fair and reasonable.
The Board noted that the Fund shares directly in economies of
scale through lower fees charged by third party service
providers based on the combined size of the Invesco Funds and
other clients advised by Invesco Advisers.
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E.
|
Profitability and
Financial Resources
|
The Board reviewed information from Invesco Advisers concerning
the costs of the advisory and other services that Invesco
Advisers and its affiliates provide to the Fund and the
profitability of Invesco Advisers and its affiliates in
providing these services. The Board reviewed with Invesco
Advisers the methodology used to prepare the profitability
information. The Board considered the profitability of Invesco
Advisers in connection with managing the Fund and the Invesco
Funds. The Board noted that Invesco Advisers continues to
operate at a net profit from services Invesco Advisers and its
subsidiaries provide to the Fund and the Invesco Funds. The
Board concluded that the level of profits realized by Invesco
Advisers and its affiliates from providing services to the Fund
is not excessive given the nature, quality and extent of the
services provided to the Invesco Funds. The Board considered
whether Invesco Advisers and each Affiliated
Sub-Adviser
are financially sound and have the resources necessary to
perform their obligations under the investment advisory
agreement and
sub-advisory
contracts. The Board concluded that Invesco Advisers and each
Affiliated
Sub-Adviser
have the financial resources necessary to fulfill these
obligations.
|
|
F.
|
Collateral
Benefits to Invesco Advisers and its Affiliates
|
The Board considered various other benefits received by Invesco
Advisers and its affiliates from the relationship with the Fund,
including the fees received for their provision of
administrative, transfer agency and distribution services to the
Fund. The Board considered the performance of Invesco Advisers
and its affiliates in providing these services and the
organizational structure employed to provide these services. The
Board also considered that these services are provided to the
Fund pursuant to written contracts that are reviewed and
approved on an annual basis by the Board; that the services are
required for the operation of the Fund; that Invesco Advisers
and its affiliates can provide services, the nature and quality
of which are at least equal to those provided by others offering
the same or similar services; and that the fees for such
services are fair and reasonable in light of the usual and
customary charges by others for services of the same nature and
quality.
The Board considered the benefits realized by
Invesco Advisers and the Affiliated
Sub-Advisers
as a result of portfolio brokerage transactions executed through
soft dollar arrangements. The Board noted that soft
dollar arrangements shift the payment obligation for research
and execution services from Invesco Advisers and the Affiliated
Sub-Advisers
to the Invesco Funds and therefore may reduce Invesco
Advisers and the Affiliated
Sub-Advisers
expenses. The Board concluded that the soft dollar arrangements
are appropriate. The Board also concluded that, based on their
review and representations made by the Chief Compliance Officer
of the Invesco Funds, these arrangements are consistent with
regulatory requirements.
The Board considered that the Funds uninvested
cash and cash collateral from any securities lending
arrangements may be invested in money market funds advised by
Invesco Advisers pursuant to procedures approved by the Board.
The Board noted that Invesco Advisers receives advisory fees
from these affiliated money market funds attributable to such
investments, although Invesco Advisers has contractually agreed
to waive through varying periods the advisory fees payable by
the Invesco Funds. The waiver is in an amount equal to 100% of
the net advisory fee Invesco Advisers receives from the
affiliated money market funds with respect to the Funds
investment in the affiliated money market funds of uninvested
cash, but not cash collateral. The Board concluded that the
Funds investment of uninvested cash and cash collateral
from any securities lending arrangements in the affiliated money
market funds is in the best interests of the Fund and its
shareholders.
25 Invesco
Municipal Premium Income Trust
Proxy
Results
An Annual Meeting (Meeting) of Shareholders of
Invesco Municipal Premium Income Trust was held on July 14,
2011. The Meeting was held for the following purpose:
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(1)
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Elect five Trustees by the holders of Common Shares and
Preferred Shares voting together, and one Trustee by the holders
of Preferred Shares voting separately, each of whom will serve
for a three-year term or until a successor has been duly elected
and qualified.
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The results of the voting on the above matter were as follows:
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Votes
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Matter
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Votes
For
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Withheld
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(1)
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David C. Arch
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14,539,097
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1,095,610
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Bob R. Baker
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14,542,298
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1,092,409
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Larry Soll
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14,532,947
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1,101,760
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Philip A. Taylor
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14,479,471
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1,155,236
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Wayne W. Whalen
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14,537,913
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1,096,794
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Frank
Bayley
(P)
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86
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4
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(P)
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Election of trustee by preferred shareholders only.
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26 Invesco
Municipal Premium Income Trust
Correspondence information
Send general correspondence to Computershare, P.O. Box 43078, Providence, RI 02940-3078.
Invesco privacy policy
You share personal and financial information with us that is necessary for your transactions
and your account records. We take very seriously the obligation to keep that information
confidential and private.
Invesco collects nonpublic personal information about you from account applications or other
forms you complete and from your transactions with us or our affiliates. We do not disclose
information about you or our former customers to service providers or other third parties except to
the extent necessary to service your account and in other limited circumstances as permitted by
law. For example, we use this information to facilitate the delivery of transaction confirmations,
financial reports, prospectuses and tax forms.
Even within Invesco, only people involved in the servicing of your accounts and compliance
monitoring have access to your information. To ensure the highest level of confidentiality and
security, Invesco maintains physical, electronic and procedural safeguards that meet or exceed
federal standards. Special measures, such as data encryption and authentication, apply to your
communications with us on our website. More detail is available to you at invesco.com/privacy.
Trust holdings and proxy voting information
The Trust provides a complete list of its holdings four times in each fiscal year, at the
quarter-ends. For the second and fourth quarters, the lists appear in the Trusts semiannual and
annual reports to shareholders. For the first and third quarters, the Trust files the lists with
the Securities and Exchange Commission (SEC) on Form N-Q. Shareholders can also look up the Trusts
Forms N-Q on the SEC website at sec.gov. Copies of the Trusts Forms N-Q may be reviewed and copied
at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of
the Public Reference Room, including information about duplicating fee charges, by calling 202 551
8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov.
The SEC file number for the Trust is 811-05688.
A description of the policies and procedures that the Trust uses to determine how to vote
proxies relating to portfolio securities is available without charge, upon request, from our Client
Services department at 800 341 2929 or at invesco.com/proxyguidelines. The information is also
available on the SEC website, sec.gov.
Information regarding how the Trust voted proxies related to its portfolio securities during
the 12 months ended June 30, 2011, is available at invesco.com/proxysearch. In addition, this
information is available on the SEC website at sec.gov.
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to
individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is
the U.S. distributor for Invesco Ltd.s retail mutual funds, exchange-traded funds and
institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
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MS-CE-MIP-SAR-1
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Invesco Distributors, Inc.
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There were no amendments to the Code of Ethics (the Code) that applies to the
Registrants Principal Executive Officer (PEO) and Principal Financial Officer (PFO)
during the period covered by the report. The Registrant did not grant any waivers,
including implicit waivers, from any provisions of the Code to the PEO or PFO during the
period covered by this report.
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ITEM 3.
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AUDIT COMMITTEE FINANCIAL EXPERT.
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Not applicable.
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ITEM 4.
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PRINCIPAL ACCOUNTANT FEES AND SERVICES.
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Not applicable.
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ITEM 5.
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AUDIT COMMITTEE OF LISTED REGISTRANTS.
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Not applicable.
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ITEM 6.
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SCHEDULE OF INVESTMENTS.
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Investments in securities of unaffiliated issuers is included as part of the
reports to stockholders filed under Item 1 of this Form.
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ITEM 7.
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DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT
INVESTMENT COMPANIES.
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Not applicable.
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ITEM 8.
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PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
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Not applicable.
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ITEM 9.
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PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND
AFFILIATED PURCHASERS.
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Not applicable.
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ITEM 10.
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SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
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None.
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ITEM 11.
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CONTROLS AND PROCEDURES.
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(a)
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As of September 16, 2011, an evaluation was performed under the supervision and
with the participation of the officers of the Registrant, including the Principal Executive
Officer (PEO) and Principal Financial Officer (PFO), to assess the effectiveness of the
Registrants disclosure controls and procedures, as that term is defined in Rule 30a-3(c)
under the Investment Company Act of 1940 (the Act), as amended. Based on that evaluation,
the Registrants officers, including the PEO and PFO, concluded that, as of
September 16, 2011, the Registrants disclosure controls and procedures were
reasonably designed to ensure: (1) that information required to be disclosed by the
Registrant on Form N-CSR is
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recorded, processed, summarized and reported within the time periods specified by
the rules and forms of the Securities and Exchange Commission; and (2) that
material information relating to the Registrant is made known to the PEO and PFO as
appropriate to allow timely decisions regarding required disclosure.
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(b)
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There have been no changes in the Registrants internal control over financial reporting (as
defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the
period covered by the report that has materially affected, or is reasonably likely to
materially affect, the Registrants internal control over financial reporting.
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12(a) (1)
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Not applicable.
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12(a) (2)
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Certifications of principal executive officer and principal financial officer as
required by Rule 30a-2(a) under the Investment Company Act of 1940.
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12(a) (3)
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Not applicable.
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12(b)
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Certifications of principal executive officer and principal financial officer as required by
Rule 30a-2(b) under the Investment Company Act of 1940.
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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: Invesco Municipal Premium Income Trust
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By:
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/s/ Philip A. Taylor
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Philip A. Taylor
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Principal Executive Officer
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Date: November 7, 2011
Pursuant to the requirements of the Securities and 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.
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By:
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/s/ Philip A. Taylor
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Philip A. Taylor
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Principal Executive Officer
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Date: November 7, 2011
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By:
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/s/ Sheri Morris
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Sheri Morris
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Principal Financial Officer
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Date: November 7, 2011
EXHIBIT INDEX
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12(a) (1)
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Not applicable.
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12(a) (2)
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Certifications of principal executive officer and
Principal financial officer as required by Rule 30a-2(a)
under the Investment Company Act of 1940.
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12(a) (3)
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Not applicable.
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12(b)
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Certifications of principal executive officer and
Principal financial officer as required by Rule 30a-2(b)
under the Investment Company Act of 1940.
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