UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number: 811-06591
Morgan Stanley Quality Municipal Income Trust
(Exact name of registrant as specified in charter)
522 Fifth Avenue, New York, New York 10036
(Address of principal executive offices) (Zip code)
Ronald E. Robison
522 Fifth Avenue, New York, New York 10036
(Name and address of agent for service)
Registrant’s telephone number, including area code: 212-296-6990
Date of fiscal year end: October 31, 2008
Date of reporting period: January 31, 2008
Item 1. Schedule of Investments.
The Trust’s schedule of investments as of the close of the reporting period prepared pursuant to Rule 12-12 of Regulation
S-X is as follows:
Morgan Stanley Quality Municipal Income Trust
Portfolio of Investments January 31, 2008 (unaudited)
PRINCIPAL
AMOUNT IN
THOUSANDS
COUPON
RATE
MATURITY
DATE
VALUE
Tax-Exempt Municipal Bonds (175.2%)
Alabama (1.2%)
$
3,700
University of Alabama, Ser 2004-A (MBIA Insd)
5.25
%
07/01/22
$
3,939,538
Alaska (1.0%)
4,000
Northern Tobacco Securitization Corporation, Alaska, Asset Backed Ser 2006 A
5.00
06/01/46
3,368,400
Arizona (5.1%)
2,000
Arizona Transportation Board, Highway Refg Ser 2002 A
5.25
07/01/19
2,201,020
3,000
Phoenix Civic Improvement Corporation, Arizona, Airport Ser 2002 B (AMT) (FGIC Insd)
5.25
07/01/32
3,016,290
3,800
Phoenix Civic Improvement Corporation, Arizona, Jr Lien Water Ser 2002 (FGIC Insd)
5.00
07/01/26
3,890,478
6,000
Salt River Project Agricultural Improvement & Power District, Arizona, 2002 Ser B
5.00
01/01/31
6,204,840
2,000
Surprise Municipal Property Corporation, Arizona, Ser 2007
4.90
04/01/32
1,872,420
17,185,048
California (29.5%)
10,000
California Economic Recovery, Ser 2004 A
5.00
07/01/16
10,745,600
2,000
California Health Facilities Financing Authority, Cedars-Sinai Medical Center Ser 2005
5.00
11/15/34
1,982,360
2,000
California Health Facilities Financing Authority, Kaiser Permanente Ser 2006 A
5.25
04/01/39
2,018,360
5,000
California Infrastructure & Economic Development Bank, Bay Area Toll Bridges Seismic Retrofit First Lien Ser 2003 A (AMBAC Insd)
5.00
07/01/36
5,553,950
3,000
California Infrastructure & Economic Development Bank, The Scripps Research Institute Ser 2005 A
5.00
07/01/29
3,088,830
6,000
California Pollution Control Financing Authority, Keller Canyon Landfill Co/Browning-Ferris Industries Inc Ser 1992 (AMT)
6.88
11/01/27
6,006,420
4,000
California Statewide Communities Development, Baptist University Ser 2007 A
5.40
11/01/27
3,888,480
5,000
California Statewide Communities Development, John Muir Health Ser 2006 A
5.00
08/15/32
4,978,900
5,000
California, Various Purpose dtd 05/01/03
5.25
02/01/19
5,357,550
16,000
California, Various Purpose Dtd 11/01/06*
4.50
10/01/36
14,891,040
6,000
Golden State Tobacco Securitization Corporation, California, Enhanced Asset Backed Ser 2005 A (AMBAC Insd)
5.00
06/01/29
6,014,640
4,000
Golden State Tobacco Securitization Corporation, California, Enhanced Asset Backed Ser 2007 A
5.75
06/01/47
3,834,720
8,000
Golden State Tobacco Securitization Corporation, California, Enhanced Asset Backed Ser 2007 A-1
5.125
06/01/47
6,930,640
4,000
Los Angeles, California, Ser 2004 A (MBIA Insd)
5.00
09/01/24
4,207,840
4,000
Port of Oakland, California, Ser 2002 L (AMT) (FGIC Insd)
5.00
11/01/32
4,008,080
3,720
San Diego County Water Authority, California, Ser 2002 A COPs (MBIA Insd)
5.00
05/01/27
3,812,851
1,000
San Diego County, Burnham Institute for Medical Research Ser 2006 COPs
5.00
09/01/34
924,630
16,000
Silicon Valley Tobacco Securitization Authority Tobacco Settlement, Santa Clara Tobacco Securitization Corp. Aer 2007
0.00
06/01/36
2,369,920
5,000
Tobacco Securitization Authority of Northern California, Sacramento County Tobacco Securitization Corporation Ser 2006 A-1
5.00
06/01/37
4,310,300
2,600
University of California, Ser 2007-J (FSA Insd)*
4.50
05/15/31
2,569,073
2,400
University of California, Ser 2007-J (FSA Insd)*
4.50
05/15/35
2,371,452
99,865,636
Colorado (2.8%)
1,750
Boulder County, Colorado, University Corp for Atmospheric Research Ser 2002 (MBIA Insd)
5.38
09/01/18
1,898,190
1,750
Boulder County, Colorado, University Corp for Atmospheric Research Ser 2002 (MBIA Insd)
5.38
09/01/21
1,898,190
2,000
Colorado Educational & Cultural Facilities Authority, Peak to Peak Charter School Refg & Impr Ser 2004 (XLCA Insd)
5.25
08/15/34
2,028,100
2,000
Colorado Health Facilities Authority, Adventist/Sunbelt Ser 2006 D
5.25
11/15/35
2,031,500
1,590
Denver Convention Center Hotel Authority, Colorado, Refg Ser 2006 (XLCA Insd)
5.00
12/01/30
1,569,648
9,425,628
Connecticut (1.5%)
5,000
Connecticut Housing Finance Authority, SubSer A-2 (AMT)
5.15
05/15/38
4,957,900
Delaware (0.3%)
1,000
New Castle County, Delaware, Newark Charter School Inc Ser 2006
5.00
09/01/36
863,430
District of Columbia (1.8%)
6,000
District of Columbia Ballpark, Ser 2006 B-1 (FGIC Insd)
5.00
02/01/31
6,013,740
Florida (7.8%)
3,000
Broward County School Board, Florida, Ser 2001 A COPs (FSA Insd)
5.00
07/01/26
3,067,200
3,500
Broward County, Florida, Water & Sewer Utility Ser 2003 (MBIA Insd)
5.00
10/01/24
3,623,795
3,000
Highlands County Health Facilities Authority, Florida, Adventist Health/Sunbelt Ser 2006 C
5.25
11/15/36
3,033,420
3,300
Jacksonville Electric Authority, Florida, St Johns Power Park Refg Issue 2 Ser 17
5.00
10/01/18
3,489,189
1,500
Lee County Industrial Development Authority, Florida, Shell Point Village/The Alliance Community for Retirement Living Inc, Ser 2006
5.13
11/15/36
1,335,045
12,000
South Miami Health Facilities Authority, Florida, Baptist Health South Florida Ser 2007*
5.00
08/15/42
11,899,140
26,447,789
Georgia (8.8%)
3,000
Atlanta, Georgia, Airport Passenger Facilities Charge Airport Ser 2004 J (FSA Insd)
5.00
01/01/34
3,064,050
10,000
Augusta, Georgia, Water & Sewerage Ser 2000 (FSA Insd)
5.25
10/01/10
+
10,843,100
6,000
Georgia Road & Tollway Authority, Ser 2004
5.00
10/01/22
6,391,980
9,000
Georgia Road & Tollway Authority, Ser 2004
5.00
10/01/23
9,587,970
29,887,100
Hawaii (7.4%)
5,000
1992 Ser BZ
6.00
10/01/10
5,470,900
8,000
1992 Ser BZ
6.00
10/01/11
8,979,360
10,000
Honolulu City & County, Hawaii, Ser 2003 A (MBIA Insd)*
5.25
03/01/26
10,578,950
25,029,210
Idaho (0.3%)
945
Idaho Housing & Finance Association, 2000 Ser E (AMT)
6.00
01/01/32
970,411
110
Idaho Housing Agency, 1992 Ser E (AMT)
6.75
07/01/12
112,069
1,082,480
Illinois (5.1%)
4,000
Chicago, Illinois, O' Hare Int'l Airport Third Lien Ser 2003 B-2 (AMT)(FSA Insd)
5.75
01/01/23
4,287,040
4,000
Cook County, Illinois, Ser 1992 C (FGIC Insd)
6.00
11/15/09
4,263,960
6,000
llinois, First Ser 2002 (MBIA Insd)
5.375
07/01/20
6,490,980
2,000
Schaumburg, Illinois, Ser 2004 B (FGIC Insd)
5.25
12/01/34
2,086,680
17,128,660
Indiana (7.3%)
10,000
Indiana Bond Bank, Revolving Fund Ser 2001 A
5.00
02/01/23
10,471,700
6,000
Indiana Health & Educational Facility Financing Authority, Clarian Health Ser 2006 A
5.25
02/15/40
5,986,020
6,335
Indiana Transportation Finance Authority, Highway Ser 2000 (FGIC Insd)
5.375
12/01/10
+
6,858,525
1,400
Marion County Convention & Recreational Facilities Authority, Indiana, Refg Ser 2003 A (AMBAC Insd)
5.00
06/01/21
1,482,768
24,799,013
Kansas (0.8%)
3,000
University of Kansas Hospital Authority, KU Health Ser 2002
4.50
09/01/32
2,696,910
Kentucky (1.5%)
5,000
Louisville & Jefferson County Metropolitan Sewer District, Kentucky, Ser 1999 A (FGIC Insd)
5.75
05/15/33
5,223,250
Maryland (4.8%)
2,000
Baltimore County, Maryland, Oak Crest Village Ser 2007 A
5.00
01/01/37
1,846,460
3,000
Maryland Health & Higher Educational Facilities Authority, King Farm Presbyterian Community 2006 Ser B
5.00
01/01/17
2,989,199
5,000
Maryland Health & Higher Educational Facilities Authority, University of Maryland Medical Ser 2001
5.25
07/01/11
+
5,453,500
1,500
Maryland Health & Higher Educational Facilities Authority, University of Maryland Medical Ser 2002
6.00
07/01/12
+
1,709,115
2,000
Maryland Health & Higher Educational Facilities Authority, University of Maryland Medical Ser 2006 A
5.00
07/01/41
1,971,140
2,000
Northeast Maryland Waste Disposal Authority, Montgomery County Ser 2003 (AMT) (AMBAC Insd)
5.50
04/01/16
2,160,940
16,130,354
Michigan (4.2%)
6,000
Michigan Hospital Finance Authority, Henry Ford Health Refg Ser 2006 A
5.25
11/15/46
5,953,260
5,000
Michigan Strategic Fund, Detroit Edison Co Ser 2001 C (AMT)
5.65
09/01/29
5,092,050
3,000
Wayne County, Michigan, Detroit Metropolitan Wayne County Airport Refg Ser 2002 D (AMT) (FGIC Insd)
5.50
12/01/17
3,165,330
14,210,640
Minnesota (0.6%)
2,000
Western Minnesota Municipal Power Agency, 2003 Ser A (MBIA Insd)
5.00
01/01/30
2,037,420
Missouri (1.2%)
2,250
Gravois Bluffs Transportaion Development District, Montana, Sales TaxSer 2007
4.75
05/01/32
2,200,703
1,500
Missouri Health & Educational Facilities Authority, Lutheran SeniorServices Ser 2005 A
5.375
02/01/35
1,505,205
210
Missouri Housing Development Commission, Homeownership Ser 2000 B-1 (AMT)
6.25
03/01/31
216,017
3,921,925
Montana (0.8%)
2,825
Montana Board of Housing, 2000 Ser B (AMT)
6.00
12/01/29
2,863,476
Nebraska (2.9%)
10,000
Nebraska Investment Financial Authority, Single Family Housing Revenue Ser 2007 E (AMT)*
5.15
09/01/38
9,885,750
Nevada (4.2%)
1,000
Clark County, Nevada, Jet Aviation Fuel Tax Ser 2003 C (AMT) (AMBAC Insd)
5.38
07/01/19
1,054,380
2,000
Clark County, Nevada, Airport Sub Lien Ser 2004 (AMT) (FGIC Insd)
5.50
07/01/20
2,135,000
1,100
Clark County, Nevada, Jet Aviation Fuel Tax Ser 2003 C (AMT)(AMBAC Insd)
5.38
07/01/20
1,155,143
2,000
Clark County, Nevada, Jet Aviation Fuel Tax Ser 2003 C (AMT)(AMBAC Insd)
5.38
07/01/22
2,081,080
5,345
Las Vegas Vallley Water District, Nevada, Water Impr Refg Ser 2003 A (FGIC Insd)
5.25
06/01/20
5,798,203
2,000
Reno, Nevada, Renown Regional Medical Center Ser 2007 A
5.25
06/01/37
1,960,260
14,184,066
New Jersey (11.7%)
2,000
New Jersey Economic Development Authority, Cigarette Tax Ser 2004
5.75
06/15/29
1,993,260
1,565
New Jersey Housing Mortgage Finance Authority, Home Buyer Ser 2000 CC (AMT) (MBIA Insd)
5.88
10/01/31
1,604,235
5,000
New Jersey Transportation Trust Fund Authority, 1999 Ser A
5.75
06/15/20
5,900,800
12,000
New Jersey Turnpike Authority, Ser 2003 A (FGIC Insd) ##
5.00
01/01/27
12,308,279
10,000
Passaic Valley Sewerage Commissioners, New Jersey, Ser F (FGIC Insd)
5.00
12/01/20
10,759,100
5,000
Tobacco Settlement Financing Corporation, New Jersey, Ser 2007-1A
4.625
06/01/26
4,375,100
6,000
Tobacco Settlement Financing Corporation, New Jersey, Ser 2007-1B
0.00
06/01/41
640,620
2,000
University of Medicine & Dentistry, New Jersey, Ser 2004 COPs (MBIA Insd)
5.25
06/15/23
2,133,520
39,714,914
New Mexico (0.9%)
3,000
Rio Rancho, New Mexico, Water & Wastewater Refg Ser 1999 (AMBAC Insd)
5.25
05/15/19
3,074,400
New York (17.8%)
10,000
Metropolitan Transportation Authority, New York, Transportation Refg Ser 2002 A (FGIC Insd)
5.00
11/15/25
10,260,200
5,000
Nassau County Tobacco Settlement Corporation, New York, Ser 2006 A-3
5.125
06/01/46
4,785,800
18,000
New York City Municipal Water Finance Authority, New York, 2002 Ser B
5.00
06/15/26
18,740,520
3,500
New York City Municipal Water Finance Authority, New York, 2003 Ser A
5.375
06/15/19
3,816,365
10,000
New York City Municipal Water Finance Authority, New York, 2004 Ser A
5.00
06/15/35
10,257,300
2,000
Seneca Nation Indians Cap Ser A
5.00
#
12/01/23
1,842,360
5,000
Tobacco Settlement Financing Corporation, New York, State Contingency Ser 2003 B-1C
5.50
06/01/17
5,307,750
5,000
Triborough Bridge & Tunnel Authority, New York, Refg 2002 E (MBIA Insd)
5.25
11/15/22
5,327,950
60,338,245
North Carolina (1.4%)
4,500
Charlotte, North Carolina, Water & Sewer Ser 2001
5.125
06/01/26
4,688,280
North Dakota (0.8%)
2,750
Ward County, North Dakota, Trinity Ser 2006
5.13
07/01/29
2,697,310
Ohio (3.3%)
5,370
Cuyahoga County, Ohio, Cleveland Clinic Ser 2003 A
6.00
01/01/32
5,818,878
3,000
Lorain County, Ohio, Catholic Healthcare Partners Ser 2001 A
5.625
10/01/17
3,187,020
2,000
Ohio State University, General Receipts Ser 2002 A
5.125
12/01/31
2,099,240
11,105,138
Oklahoma (0.4%)
1,500
Oklahoma Development Finance Authority, Oklahoma, Great Plains Medical Center Ser 2007
5.125
12/01/36
1,352,115
Pennsylvania (4.3%)
4,000
Allegheny County Redevelopment Authority, Pennsylvania, West Penn Allegheny Health Ser 2007 A*
5.375
11/15/40
3,486,680
10,000
Pennsylvania, First Ser 2003 (MBIA Insd)*
5.00
01/01/13
+
11,054,550
14,541,230
South Carolina (4.8%)
3,000
Charleston Educational Excellence Financing Corporation, South Carolina, Charleston County School District Ser 2005
5.25
12/01/29
3,088,050
70
Lexington County, South Carolina, Health Services District, Lexmed Inc., Ser 2007 A
5.00
11/01/16
74,908
345
Richland County, Environmental Improvement Revenue, South Carolina, International Paper Company Ser 2007 A
4.60
09/01/12
349,181
5,000
South Carolina Public Service Authority, Refg Ser 2002 D (FSA Insd)
5.00
01/01/20
5,358,100
7,000
South Carolina Public Service Authority, Refg Ser 2003 A (AMBAC Insd)
5.00
01/01/22
7,314,090
16,184,329
Tennessee (3.0%)
2,000
Sullivan County Health Educational & Housing Facilities Board, Tennessee, Wellmont Health Ser 2006 C
5.25
09/01/36
1,907,520
8,000
Tennessee Energy Acquisition Corporation, Ser 2006 A*
5.25
09/01/19
8,405,320
10,312,840
Texas (18.0%)
2,000
Alliance Airport Authority, Texas, Federal Express Corp Refg Ser 2006 (AMT)
4.85
04/01/21
1,941,320
10,000
Austin, Texas, Water & Wastewater Refg Ser 2001 A & B (FSA Insd)*
2.125
05/15/27
10,196,920
3,000
Brazos River Authority, Texas, TXU Electric Co Ser 1999 C (AMT)
7.70
03/01/32
3,110,100
6,000
Houston, Texas, Airport Sub Lien Ser 2000 A (AMT) (FSA Insd)
5.875
07/01/17
6,238,920
5,000
Houston, Texas, Airport Sub Lien Ser 2000 A (AMT) (FSA Insd)
5.625
07/01/30
5,143,950
15,000
Houston, Texas, Combined Utility First Lien Refg 2004 Ser A (FGIC Insd)
5.25
05/15/23
15,772,650
2,350
Northside Independent School District, Texas, Bldg & Refg Ser 2001 (PSF)
5.00
02/15/26
2,432,908
13,960
San Antonio, Texas, Water & Refg Ser 2001 (FGIC Insd)
5.00
05/15/26
14,176,659
2,000
Tarrant County Cultural Educational Facilities Finance Corp, Texas, Air
5.125
05/15/37
1,917,960
Force Village II Inc Ser 2007
60,931,387
Vermont (0.6%)
2,500
Vermont Economic Development Authority, Wake Robin Corp Ser 2006 A
5.375
05/01/36
2,190,375
Virginia (1.5%)
2,000
Fairfax County Economic Development Authority, Virginia, Goodwin House Inc Ser 2007
5.125
10/01/42
1,874,900
1,450
Henrico County Economic Development Authority Residential Care Facilities, Virginia, Westminister Canterbury Management Corp
5.00
10/01/27
1,408,371
1,750
Henrico County Economic Development Authority Residential Care Facilities, Virginia, Westminister Canterbury Management Corp
5.00
10/01/35
1,636,828
4,920,099
Washington (5.8%)
7,000
Energy Northwest, Washington, ColuMBIA Insd Refg Ser 2001 C (MBIA Insd)
5.75
07/01/18
7,691,740
5,000
Grant County Public Utility District #2, Washington, Electric Refg Ser 2001 H (FSA Insd)
5.38
01/01/18
5,329,850
4,010
Port of Seattle, Washington, Passenger Facility Ser 1998 A (MBIA Insd)*
5.00
12/01/23
4,056,560
2,500
Spokane School District #81, Washington, Ser 2005 (MBIA Insd)
0.00
++
06/01/23
2,519,275
19,597,425
Total Tax-Exempt Municipal Bonds
(Cost $580,230,079)
592,795,450
NUMBER OF
SHARES (000)
Short-Term Investment (a) (3.1%)
Investment Company
10,341
Morgan Stanley Institutional Liquidity Tax-Exempt Portfolio - Institutional Class
(Cost $10,341,460)
10,341,460
Total Investments
(Cost $590,571,539)
603,136,910
PRINCIPAL
AMOUNT IN
THOUSANDS
Floating Rate Notes Related to Securities Held (-18.4%)
$
(62,260
)
Notes with interest rates ranging from 2.11% to 3.78% at January 31, 2008 and contractual maturities of collateral ranging from 10/01/13 to 08/15/42 +++ (b)
(Cost ($62,260,000))
(62,260,000
)
Total Net Investments
(Cost $528,311,539) (c) (d)
159.9
%
540,876,910
Other Assets in Excess of Liabilities
1.6
5,478,405
Preferred Shares of Beneficial Interest
(61.5
)
(208,095,418
)
Net Assets Applicable to Common Shareholders
100.0
%
$
338,259,897
Note: The categories of investments are shown as a percentage of net assets applicable to common shareholders.
AMT
Alternative Minimum Tax.
COPs
Certificates of Participation.
PSF
Texas Permanent School Fund Guarantee Program.
+
Prerefunded to call date shown.
++
Security is a “step-up” bond where the coupon increase on predetermined future date.
+++
Floating rate note obligations related to securities held. The interest rate shown reflects the rate in effect
at January 31, 2008.
*
Underlying security related to inverse floater entered into by the Trust.
#
Resale restricted to qualified institutional investors.
##
A portion of this security has been physically segregated in connection with open futures contracts in the amount of $693,260.
(a)
The Fund invests in Morgan Stanley Institutional Liquidity Tax-Exempt Portfolio - Institutional
Class, an open-end management investment company managed by the Investment Adviser.
Investment Advisory fees paid by the Fund are reduced by an amount equal to the advisory and
administrative service fees paid by Morgan Stanley Institutional Liquidity Tax-Exempt
Portfolio - Institutional Class with respect to assets invested by the Fund in Morgan Stanley
Institutional Liquidity Tax-Exempt Portfolio - Institutional Class. Income distributions earned
by the Fund totaled $99,357, for the period ended January 31, 2008.
(b)
Floating Rate Note Obligations Related to Securities Held – The Trust enters into transactions
in which it transfers to Dealer Trusts (“Dealer Trusts”), fixed rate bonds in exchange for cash and
residual interests in the Dealer Trusts’ assets and cash flows, which are in the form of inverse
floating rate investments. The Dealer Trusts fund 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 Trust enters into shortfall agreements with the Dealer Trusts which commit the Trust to pay
the Dealer Trusts, in certain circumstances, the difference between the liquidation value of the
fixed rate bonds held by the Dealer Trusts and the liquidation value of the floating rate notes held
by third parties, as well as any shortfalls in interest cash flows. 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 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. The Trust
accounts for the transfer of bonds to the Dealer Trusts as secured borrowings, with the securities
transferred remaining in the Trust’s investment assets, and the related floating rate notes reflected as
Trust liabilities. The 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. At January 31, 2008, Trust investments with a value of $89,395,435 are held by the
Dealer Trusts and serve as collateral for the $62,260,000 in floating rate note obligations outstanding
at that date.
(c)
Securities have been designated as collateral in an amount equal to $110,431,225 in connection with open futures
contracts.
(d)
The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes.
Bond Insurance:
AMBAC
AMBAC Assurance Corporation.
FGIC
Financial Guaranty Insurance Company.
FSA
Financial Security Assurance Inc.
MBIA
Municipal Bond Investors Assurance Corporation.
XLCA
XL Capital Assurance Inc.
Futures Contracts Open at January 31, 2008:
NUMBER OF
CONTRACTS
LONG/SHORT
DESCRIPTION, DELIVERY
MONTH AND YEAR
UNDERLYING FACE
AMOUNT AT VALUE
UNREALIZED
APPRECIATION
(DEPRECIATION)
170
Long
U.S. Treasury Notes 10 Year,
$
19,842,188
$
89,602
March 2008
310
Short
U.S. Treasury Notes 5 Year,
(35,030,000
)
(778,977
)
March 2008
112
Short
U.S. Treasury Notes 2 Year,
(23,880,501
)
(308,840
)
March 2008
98
Short
U.S. Treasury Bonds 20 Year,
(11,692,625
)
(25,058
)
March 2008
198
Short
Swap 10 Year,
(22,537,970
)
(657,603
)
March 2008
Net Unrealized Depreciation
$
(1,680,876
)
Item 2. Controls and Procedures.
(a) The Trust’s principal executive officer and principal financial officer have concluded that the Trust’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Trust’s in this Form N-Q was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, based upon such officers’ evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.
(b) There were no changes in the Trust’s internal control over financial reporting that occurred during the registrant’s fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Trust’s internal control over financial reporting.
Item 3. Exhibits.
(a) A separate certification for each principal executive officer and principal financial officer of the registrant are attached hereto.
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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.
Morgan Stanley Quality Municipal Income Trust
/s/ Ronald E. Robison
Ronald E. Robison
Principal Executive Officer
March 20, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
/s/ Ronald E. Robison
Ronald E. Robison
Principal Executive Officer
March 20, 2008
/s/ Francis Smith
Francis Smith
Principal Financial Officer
March 20, 2008
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Exhibit 3 A1
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
I, Ronald E. Robison, certify that:
1.
I have reviewed this report on Form N-Q of Morgan Stanley Quality Municipal Income Trust;
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.
Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;
4.
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have:
(a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)
Omitted;
(c)
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and
(d)
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.
The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
(b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: March 20, 2008
/s/ Ronald E. Robison
Ronald E. Robison
Principal Executive Officer
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Exhibit 3 A2
CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER
I, Francis Smith, certify that:
1.
I have reviewed this report on Form N-Q of Morgan Stanley Quality Municipal Income Trust;
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.
Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;
4.
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have:
(a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)
Omitted;
(c)
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and
(d)
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.
The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
(b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: March 20, 2008
/s/ Francis Smith
Francis Smith
Principal Financial Officer
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