UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
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Investment Company Act file
number |
811-05652 |
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BNY Mellon Municipal Income,
Inc. |
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(Exact name of Registrant as
specified in charter) |
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c/o BNY Mellon Investment Adviser, Inc.
240 Greenwich Street
New York, New York 10286
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(Address of principal executive
offices) (Zip
code) |
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Deirdre Cunnane, Esq.
240 Greenwich Street
New York, New York 10286
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(Name and address of agent for
service) |
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Registrant's telephone number,
including area code: |
(212) 922-6400 |
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Date
of fiscal year end:
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09/30 |
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Date of reporting period: |
03/31/2022
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FORM N-CSR
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Item 1. |
Reports to Stockholders. |
BNY Mellon Municipal Income, Inc.
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SEMIANNUAL REPORT
March 31, 2022
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BNY Mellon Municipal Income, Inc.
Protecting Your Privacy
Our Pledge to You
THE FUND IS COMMITTED TO YOUR PRIVACY.
On this page, you will find the fund’s policies and practices for
collecting, disclosing, and safeguarding “nonpublic personal
information,” which may include financial or other customer
information. These policies apply to individuals who purchase fund
shares for personal, family, or household purposes, or have done so
in the past. This notification replaces all previous statements of
the fund’s consumer privacy policy, and may be amended at any time.
We’ll keep you informed of changes as required by law.
YOUR ACCOUNT IS PROVIDED IN A SECURE ENVIRONMENT.
The fund maintains physical, electronic and procedural safeguards
that comply with federal regulations to guard nonpublic personal
information. The fund’s agents and service providers have limited
access to customer information based on their role in servicing
your account.
THE FUND COLLECTS INFORMATION IN ORDER TO SERVICE AND ADMINISTER
YOUR ACCOUNT.
The fund collects a variety of nonpublic personal information,
which may include:
• Information
we receive from you, such as your name, address, and social
security number.
• Information
about your transactions with us, such as the purchase or sale of
fund shares.
• Information
we receive from agents and service providers, such as proxy voting
information.
THE FUND DOES NOT SHARE NONPUBLIC PERSONAL INFORMATION WITH ANYONE,
EXCEPT AS PERMITTED BY LAW.
Thank you for this opportunity to serve you.
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The views expressed in this report reflect those of the portfolio
manager(s) only through the end of the period covered and do not
necessarily represent the views of BNY Mellon Investment Adviser,
Inc. or any other person in the BNY Mellon Investment Adviser, Inc.
organization. Any such views are subject to change at any time
based upon market or other conditions and BNY Mellon Investment
Adviser, Inc. disclaims any responsibility to update such views.
These views may not be relied on as investment advice and, because
investment decisions for a fund in the BNY Mellon Family of Funds
are based on numerous factors, may not be relied on as an
indication of trading intent on behalf of any fund in the BNY
Mellon Family of Funds.
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Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value
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Contents
THE FUND
FOR MORE INFORMATION
Back Cover
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DISCUSSION OF FUND PERFORMANCE
(Unaudited)
For the period from October 1, 2021, through March 31, 2022, as
provided by Portfolio Managers Daniel Rabasco and Jeffrey Burger,
Primary Portfolio Managers of Insight North America LLC
Sub-adviser
Market and Fund Performance Overview
For the six-month period ended March 31, 2022, BNY Mellon Municipal
Income, Inc. produced a total return of -8.94% on a net-asset-value
basis and -19.48% on a market price basis.1
Over the same period, the fund provided aggregate income dividends
of $.18 per share, which reflects an annualized distribution rate
of 4.74%.2
Municipal bonds declined during the reporting period as the market
was hindered by inflation concerns and rising interest rates.
The Fund’s Investment Approach
The fund seeks to maximize current income exempt from federal
income tax to the extent consistent with the preservation of
capital. Under normal market conditions, the fund invests at least
80% of the value of its net assets in municipal obligations and
invests in municipal obligations which, at the time of purchase,
are rated investment grade or the unrated equivalent as determined
by BNY Mellon Investment Adviser, Inc, in the case of bonds, and
rated in the two highest-rating categories or the unrated
equivalent as determined by BNY Mellon Investment Adviser, Inc. in
the case of short-term obligations having, or deemed to have,
maturities of less than one year.
To this end, we have constructed a portfolio based on identifying
income opportunities through analysis of each bond’s structure,
including paying close attention to each bond’s yield, maturity and
early redemption features. Over time, many of the fund’s relatively
higher-yielding bonds mature or are redeemed by their issuers, and
we generally attempt to replace those bonds with investments
consistent with the fund’s investment policies, albeit with yields
that reflect the then-current, interest-rate environment. When
making new investments, we focus on identifying undervalued sectors
and securities, and we minimize the use of interest-rate
forecasting. We use fundamental analysis to estimate the relative
value and attractiveness of various sectors and securities and to
exploit pricing inefficiencies in the municipal bond market.
Inflation and Rising Rates Hindered Returns
Early in the reporting period, the market continued to benefit from
policies put in place in response to the COVID-19 pandemic,
including support from the federal government. But late in the
period, inflation concerns, rising interest rates and retail
outflows from municipal bond mutual funds created turmoil.
A strengthening economy, combined with federal support, have
supported the fiscal health of issuers. During much of the
pandemic, real estate and income tax collections failed to decline
as much as predicted, and progressive tax regimes proved beneficial
because higher-earning, white-collar workers were largely able to
work from home. Strong stock market returns also boosted revenues
from capital gains taxes.
Later in the reporting period, however, a number of headwinds
emerged. The outlook for inflation shifted away from the view that
pricing pressures were “transitory” as oil prices rose, and
inflation measures reached multi-decade highs. In addition,
investors began to anticipate that the Federal Reserve (the “Fed”)
would move to a policy of tightening. Fed officials signaled that
short-term interest rates would be raised, and in March 2022, they
raised the federal funds rate by 25 basis points.
2
Historically, municipal bonds have been perceived as a safe haven
from turmoil in fixed-income markets. But the persistence of
higher-than-expected inflation, combined with measures from the Fed
to combat it, led to significant outflows from municipal bond
mutual funds, especially late in the reporting period. The need for
fund managers to meet redemptions only added to the downward
momentum. In addition, the latter part of the period was
characterized by volatility stemming from these headwinds as well
as the war in Ukraine.
While these headwinds have hindered returns in the near term,
credit fundamentals remain strong. In addition, the market turmoil
has resulted in more attractive valuations in many segments of the
market, creating the potential for outperformance in the
future.
Duration and Security Selection Detracted
The fund’s performance was hampered primarily by its duration and
security selection. The fund’s longer duration detracted from
performance as rates rose at the long end of the curve. The
leverage used to enhance performance also detracted as rates at the
short end of the curve rose, raising borrowing costs. Selections in
the hospital, education, pre-paid gas and power sectors were also
detrimental to returns.
On a more positive note, the fund’s performance was aided by
certain security selections. Selections in the airports, continuing
care and retirement centers, special tax and transportation sectors
were especially helpful. Detracting from returns on a security
selection basis were public power, hospital and pre-paid gas bonds.
Particular securities that added to returns included New Jersey
Appropriation debt and Puerto Rico and New York City general
obligation bonds. The fund did not employ derivatives during the
reporting period.
Strong Fundamentals and Attractive Valuations Bode Well for the
Market
We remain sanguine about the market. Some volatility is to be
expected over the medium-to-long term, with the Fed beginning to
taper its purchases of Treasuries soon. But we believe that the
Fed’s anticipated actions are reflected in current market
conditions. In addition, with credit fundamentals still strong, we
have little concern about credit risk in the near term. The
market’s recent volatility has also resulted in more attractive
valuations, creating more plentiful opportunities.
April 15, 2022
1 Total
return includes reinvestment of dividends and any capital gains
paid, based upon net asset value per share or market price per
share, as applicable. Past performance is no guarantee of future
results. Market price per share, net asset value per share and
investment return fluctuate. Income may be subject to state and
local taxes, and some income may be subject to the federal
alternative minimum tax (AMT) for certain investors. Capital gains,
if any, are fully taxable.
2 Distribution
rate per share is based upon dividends per share paid from net
investment income during the period, divided by the market price
per share at the end of the period, adjusted for any capital gain
distributions.
Bonds are subject generally to interest-rate, credit, liquidity and
market risks, to varying degrees. Generally, all other factors
being equal, bond prices are inversely related to interest-rate
changes, and rate increases can cause price declines. High yield
bonds are subject to increased credit risk and are considered
speculative in terms of the issuer’s perceived ability to continue
making interest payments on a timely basis and to repay principal
upon maturity. The use of leverage may magnify the fund’s gains or
losses. For derivatives with a leveraging component, adverse
changes in the value or level of the underlying asset can result in
a loss that is much greater than the original investment in the
derivative.
Recent market risks include pandemic risks related to
COVID-19. The effects of COVID-19 have contributed to
increased volatility in global markets and will likely affect
certain countries, companies, industries and market sectors more
dramatically than others. To the extent the fund may overweight its
investments in certain countries, companies, industries or market
sectors, such positions will increase the fund’s exposure to risk
of loss from adverse developments affecting those countries,
companies, industries or sectors.
3
STATEMENT OF INVESTMENTS
March 31, 2022 (Unaudited)
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Description
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Coupon
Rate (%)
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Maturity
Date
|
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Principal
Amount ($)
|
|
Value ($)
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Long-Term Municipal Investments - 148.9%
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Alabama - 5.0%
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Jefferson County, Revenue Bonds, Refunding, Ser. F
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7.75
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10/1/2046
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4,000,000
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a
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4,076,395
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The Lower Alabama Gas District, Revenue Bonds, Ser. A
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5.00
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9/1/2046
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2,500,000
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2,937,944
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University of Alabama at Birmingham, Revenue Bonds, Ser. B
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4.00
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10/1/2036
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1,500,000
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1,640,642
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8,654,981
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Arizona - 5.4%
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Arizona Industrial Development Authority, Revenue Bonds (Equitable
School Revolving Fund Obligated Group) Ser. A
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4.00
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11/1/2046
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1,355,000
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1,409,394
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Arizona Industrial Development Authority, Revenue Bonds (Phoenix
Children's Hospital Obligated Group)
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4.00
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2/1/2050
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1,000,000
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1,036,533
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Glendale Industrial Development Authority, Revenue Bonds, Refunding
(Sun Health Services Obligated Group) Ser. A
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5.00
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11/15/2054
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1,500,000
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1,623,772
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La Paz County Industrial Development Authority, Revenue Bonds
(Harmony Public Schools) Ser. A
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5.00
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2/15/2046
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1,500,000
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b
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1,579,339
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La Paz County Industrial Development Authority, Revenue Bonds
(Harmony Public Schools) Ser. A
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5.00
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2/15/2036
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1,000,000
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b
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1,062,119
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Salt Verde Financial Corp., Revenue Bonds
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5.00
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12/1/2037
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2,190,000
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2,597,429
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9,308,586
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California - 12.3%
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California Community Choice Financing Authority, Revenue Bonds
(Green Bond) Ser. B1
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4.00
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8/1/2031
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1,500,000
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c
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1,624,019
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California County Tobacco Securitization Agency, Revenue Bonds,
Refunding, Ser. A
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4.00
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6/1/2039
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565,000
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593,066
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California Municipal Finance Authority, Revenue Bonds (Community
Health System) Ser. A
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4.00
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2/1/2051
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1,500,000
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1,550,533
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San Diego County Regional Airport Authority, Revenue Bonds, Ser.
B
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4.00
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7/1/2056
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3,500,000
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3,571,046
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4
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Description
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Coupon
Rate (%)
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Maturity
Date
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Principal
Amount ($)
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Value ($)
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Long-Term Municipal Investments - 148.9% (continued)
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California - 12.3% (continued)
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Tender Option Bond Trust Receipts (Series 2016-XM0387), (Los
Angeles Department of Airports, Revenue Bonds (Los Angeles
International Airport)) Non-recourse, Underlying Coupon Rate (%)
5.00
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16.69
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5/15/2038
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4,000,000
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b,d,e
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4,112,868
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Tender Option Bond Trust Receipts (Series 2016-XM0390), (The
Regents of the University of California, Revenue Bonds, Refunding)
Non-recourse, Underlying Coupon Rate (%) 5.00
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16.75
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5/15/2036
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3,740,000
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b,d,e
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3,871,203
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Tender Option Bond Trust Receipts (Series 2020-XF2876), (San
Francisco California City & County Airport Commission, Revenue
Bonds, Refunding, Ser. E) Recourse, Underlying Coupon Rate (%)
5.00
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16.42
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5/1/2050
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3,250,000
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b,d,e
|
3,570,703
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Tobacco Securitization Authority of Southern California, Revenue
Bonds, Refunding (San Diego County Tobacco Asset
Securitization)
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5.00
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6/1/2048
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2,000,000
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|
2,209,819
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21,103,257
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Colorado - 6.8%
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Colorado Educational & Cultural Facilities Authority, Revenue
Bonds, Refunding (Johnson & Wales University) Ser. B
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5.00
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4/1/2023
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1,680,000
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f
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1,732,300
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Colorado Health Facilities Authority, Revenue Bonds, Refunding
(Covenant Living Communities & Services Obligated Group) Ser.
A
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4.00
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12/1/2050
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2,000,000
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2,122,828
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Colorado High Performance Transportation Enterprise, Revenue
Bonds
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5.00
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12/31/2056
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1,500,000
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1,614,717
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Tender Option Bond Trust Receipts (Series 2016-XM0433), (Colorado
Springs, Revenue Bonds) Recourse, Underlying Coupon Rate (%)
5.00
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16.75
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11/15/2043
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3,997,093
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b,d,e
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4,163,434
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5
STATEMENT OF INVESTMENTS (Unaudited) (continued)
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Description
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Coupon
Rate (%)
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Maturity
Date
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|
Principal
Amount ($)
|
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Value ($)
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|
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Long-Term Municipal Investments - 148.9% (continued)
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Colorado - 6.8% (continued)
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Tender Option Bond Trust Receipts (Series 2020-XM0829), (Colorado
Health Facilities Authority, Revenue Bonds, Refunding (CommonSpirit
Health Obligated Group, Ser. A1)) Recourse, Underlying Coupon Rate
(%) 4.00
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15.79
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8/1/2044
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1,645,000
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b,d,e
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2,055,950
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11,689,229
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Connecticut - 3.5%
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Connecticut, Revenue Bonds, Ser. A
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5.00
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5/1/2040
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1,000,000
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1,153,558
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Connecticut Health & Educational Facilities Authority, Revenue
Bonds, Refunding (Connecticut College) Ser. M
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4.00
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7/1/2052
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2,000,000
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2,092,804
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Connecticut Health & Educational Facilities Authority, Revenue
Bonds, Refunding (Trinity Health Obligated Group)
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5.00
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12/1/2045
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2,500,000
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2,722,971
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5,969,333
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District of Columbia - 4.2%
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Tender Option Bond Trust Receipts (Series 2016-XM0437), (District
of Columbia, Revenue Bonds) Recourse, Underlying Coupon Rate (%)
5.00
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16.76
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|
12/1/2035
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6,997,490
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b,d,e
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7,146,033
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Florida - 7.4%
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Atlantic Beach, Revenue Bonds (Fleet Landing Project) Ser. A
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5.00
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11/15/2048
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1,500,000
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1,613,798
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Davie, Revenue Bonds (Nova Southeastern University Project) Ser.
A
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5.63
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4/1/2023
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500,000
|
f
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519,630
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Florida Higher Educational Facilities Financial Authority, Revenue
Bonds (Ringling College Project)
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5.00
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3/1/2049
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1,500,000
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1,640,400
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Halifax Hospital Medical Center, Revenue Bonds, Refunding
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4.00
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6/1/2025
|
|
1,000,000
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f
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1,058,263
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Palm Beach County Health Facilities Authority, Revenue Bonds
(Lifespace Communities Obligated Group) Ser. B
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4.00
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5/15/2053
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1,000,000
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887,611
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Tampa, Revenue Bonds (H. Lee Moffitt Cancer Center & Research
Institute Obligated Group) Ser. B
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5.00
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7/1/2050
|
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1,500,000
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1,689,258
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Tender Option Bond Trust Receipts (Series 2019-XF0813), (Fort Myers
Florida Utility, Revenue Bonds) Non-recourse, Underlying Coupon
Rate (%) 4.00
|
|
12.87
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|
10/1/2049
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1,015,000
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b,d,e
|
1,073,846
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6
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|
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Description
|
Coupon
Rate (%)
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|
Maturity
Date
|
|
Principal
Amount ($)
|
|
Value ($)
|
|
|
Long-Term Municipal Investments - 148.9% (continued)
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|
|
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Florida - 7.4% (continued)
|
|
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Tender Option Bond Trust Receipts (Series 2019-XM0782), (Palm Beach
County Florida Health Facilities Authority, Revenue Bonds,
Refunding (Baptist Health South Florida Obligated Group)) Recourse,
Underlying Coupon Rate (%) 4.00
|
|
12.97
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|
8/15/2049
|
|
2,770,000
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b,d,e
|
2,847,179
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|
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Tender Option Bond Trust Receipts (Series 2020-XF2877), (Greater
Orlando Aviation Authority, Revenue Bonds, Ser. A) Recourse,
Underlying Coupon Rate (%) 4.00
|
|
12.89
|
|
10/1/2049
|
|
1,380,000
|
b,d,e
|
1,419,548
|
|
|
|
12,749,533
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|
Georgia - 4.1%
|
|
|
|
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Tender Option Bond Trust Receipts (Series 2019-XF2847), (Municipal
Electric Authority of Georgia, Revenue Bonds (Plant Vogtle Unis
3&4 Project, Ser. A)) Recourse, Underlying Coupon Rate (%)
5.00
|
|
16.58
|
|
1/1/2056
|
|
1,270,000
|
b,d,e
|
1,404,116
|
|
|
Tender Option Bond Trust Receipts (Series 2020-XM0825), (Brookhaven
Development Authority, Revenue Bonds (Children's Healthcare of
Atlanta, Ser. A)) Recourse, Underlying Coupon Rate (%) 4.00
|
|
14.25
|
|
7/1/2044
|
|
2,660,000
|
b,d,e
|
3,021,631
|
|
|
The Atlanta Development Authority, Revenue Bonds, Ser. A1
|
|
5.25
|
|
7/1/2040
|
|
1,500,000
|
|
1,634,133
|
|
|
The Burke County Development Authority, Revenue Bonds, Refunding
(Oglethorpe Power Corp.) Ser. D
|
|
4.13
|
|
11/1/2045
|
|
1,000,000
|
|
1,030,172
|
|
|
|
7,090,052
|
|
|
Illinois - 18.1%
|
|
|
|
|
|
|
Chicago Board of Education, Revenue Bonds
|
|
5.00
|
|
4/1/2046
|
|
1,725,000
|
|
1,836,110
|
|
|
Chicago II, GO, Refunding, Ser. A
|
|
6.00
|
|
1/1/2038
|
|
2,000,000
|
|
2,241,014
|
|
|
Chicago II, GO, Ser. A
|
|
5.00
|
|
1/1/2044
|
|
1,000,000
|
|
1,075,010
|
|
|
Chicago II Wastewater Transmission, Revenue Bonds, Refunding, Ser.
C
|
|
5.00
|
|
1/1/2039
|
|
1,100,000
|
|
1,173,545
|
|
|
Chicago II Waterworks, Revenue Bonds (2nd Lien Project)
|
|
5.00
|
|
11/1/2028
|
|
1,000,000
|
|
1,066,571
|
|
|
Chicago O'Hare International Airport, Revenue Bonds, Refunding,
Ser. A
|
|
5.00
|
|
1/1/2048
|
|
2,000,000
|
|
2,178,117
|
|
7
STATEMENT OF INVESTMENTS (Unaudited) (continued)
| |
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
Coupon
Rate (%)
|
|
Maturity
Date
|
|
Principal
Amount ($)
|
|
Value ($)
|
|
|
Long-Term Municipal Investments - 148.9% (continued)
|
|
|
|
|
|
|
Illinois - 18.1% (continued)
|
|
|
|
|
|
|
Chicago Transit Authority, Revenue Bonds, Refunding, Ser. A
|
|
5.00
|
|
12/1/2045
|
|
1,000,000
|
|
1,125,241
|
|
|
Greater Chicago Metropolitan Water Reclamation District, GO,
Refunding, Ser. D
|
|
5.00
|
|
12/1/2031
|
|
500,000
|
|
604,515
|
|
|
Illinois, GO, Refunding, Ser. A
|
|
5.00
|
|
10/1/2029
|
|
1,000,000
|
|
1,113,433
|
|
|
Illinois, GO, Ser. A
|
|
5.00
|
|
5/1/2038
|
|
1,250,000
|
|
1,352,394
|
|
|
Illinois, GO, Ser. D
|
|
5.00
|
|
11/1/2028
|
|
1,000,000
|
|
1,104,111
|
|
|
Illinois Finance Authority, Revenue Bonds, Refunding (Rosalind
Franklin University of Medicine & Science)
|
|
5.00
|
|
8/1/2047
|
|
1,350,000
|
|
1,448,222
|
|
|
Metropolitan Pier & Exposition Authority, Revenue Bonds
(McCormick Place Expansion Project)
|
|
5.00
|
|
6/15/2057
|
|
2,500,000
|
|
2,640,307
|
|
|
Metropolitan Pier & Exposition Authority, Revenue Bonds
(McCormick Place Project) (Insured; National Public Finance
Guarantee Corp.) Ser. A
|
|
0.00
|
|
12/15/2036
|
|
2,500,000
|
g
|
1,401,455
|
|
|
Metropolitan Pier & Exposition Authority, Revenue Bonds,
Refunding (McCormick Place Project) Ser. B
|
|
5.00
|
|
12/15/2028
|
|
1,500,000
|
|
1,511,530
|
|
|
Sales Tax Securitization Corp., Revenue Bonds, Refunding, Ser.
A
|
|
4.00
|
|
1/1/2039
|
|
1,500,000
|
|
1,563,301
|
|
|
Tender Option Bond Trust Receipts (Series 2017-XM0492), (Illinois
Finance Authority, Revenue Bonds, Refunding (The University of
Chicago)) Non-recourse, Underlying Coupon Rate (%) 5.00
|
|
16.75
|
|
10/1/2040
|
|
7,000,000
|
b,d,e
|
7,600,009
|
|
|
|
31,034,885
|
|
|
Indiana - .7%
|
|
|
|
|
|
|
Indiana Finance Authority, Revenue Bonds (Parkview Health System
Obligated Group) Ser. A
|
|
5.00
|
|
11/1/2043
|
|
1,000,000
|
|
1,149,804
|
|
|
Iowa - .6%
|
|
|
|
|
|
|
Iowa Tobacco Settlement Authority, Revenue Bonds, Refunding, Ser.
B1
|
|
4.00
|
|
6/1/2049
|
|
1,000,000
|
|
1,015,307
|
|
|
Kentucky - .7%
|
|
|
|
|
|
|
Kentucky Economic Development Finance Authority, Revenue Bonds,
Refunding (Louisville Arena Project) (Insured; Assured Guaranty
Municipal Corp.) Ser. A
|
|
5.00
|
|
12/1/2045
|
|
1,000,000
|
|
1,137,563
|
|
8
| |
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
Coupon
Rate (%)
|
|
Maturity
Date
|
|
Principal
Amount ($)
|
|
Value ($)
|
|
|
Long-Term Municipal Investments - 148.9% (continued)
|
|
|
|
|
|
|
Louisiana - 4.7%
|
|
|
|
|
|
|
Louisiana Local Government Environmental Facilities & Community
Development Authority, Revenue Bonds, Refunding (Westlake Chemical
Project)
|
|
3.50
|
|
11/1/2032
|
|
1,000,000
|
|
1,014,678
|
|
|
Tender Option Bond Trust Receipts (Series 2018-XF2584), (Louisiana
Public Facilities Authority, Revenue Bonds (Franciscan Missionaries
of Our Lady Health System Project)) Non-recourse, Underlying Coupon
Rate (%) 5.00
|
|
16.53
|
|
7/1/2047
|
|
6,320,000
|
b,d,e
|
6,983,875
|
|
|
|
7,998,553
|
|
|
Maryland - 2.6%
|
|
|
|
|
|
|
Maryland Health & Higher Educational Facilities Authority,
Revenue Bonds (Adventist Healthcare Obligated Group) Ser. A
|
|
5.50
|
|
1/1/2046
|
|
1,500,000
|
|
1,657,354
|
|
|
Maryland Health & Higher Educational Facilities Authority,
Revenue Bonds, Refunding (Stevenson University Project)
|
|
4.00
|
|
6/1/2046
|
|
750,000
|
|
759,009
|
|
|
Tender Option Bond Trust Receipts (Series 2016-XM0391), (Mayor
& City Council of Baltimore, Revenue Bonds, Refunding (Water
Projects)) Non-recourse, Underlying Coupon Rate (%) 5.00
|
|
16.75
|
|
7/1/2042
|
|
2,000,000
|
b,d,e
|
2,106,221
|
|
|
|
4,522,584
|
|
|
Massachusetts - 6.1%
|
|
|
|
|
|
|
Massachusetts Development Finance Agency, Revenue Bonds, Refunding
(Atrius Health Obligated Group) Ser. A
|
|
4.00
|
|
6/1/2049
|
|
1,500,000
|
|
1,548,575
|
|
|
Massachusetts Development Finance Agency, Revenue Bonds, Refunding
(UMass Memorial Health Care Obligated Group) Ser. I
|
|
5.00
|
|
7/1/2046
|
|
1,835,000
|
|
2,032,302
|
|
|
Massachusetts Development Finance Agency, Revenue Bonds, Refunding,
Ser. A
|
|
5.00
|
|
7/1/2026
|
|
950,000
|
|
1,054,077
|
|
|
Massachusetts Educational Financing Authority, Revenue Bonds,
Refunding, Ser. K
|
|
5.25
|
|
7/1/2029
|
|
540,000
|
|
544,225
|
|
9
STATEMENT OF INVESTMENTS (Unaudited) (continued)
| |
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
Coupon
Rate (%)
|
|
Maturity
Date
|
|
Principal
Amount ($)
|
|
Value ($)
|
|
|
Long-Term Municipal Investments - 148.9% (continued)
|
|
|
|
|
|
|
Massachusetts - 6.1% (continued)
|
|
|
|
|
|
|
Massachusetts Port Authority, Revenue Bonds, Refunding (Bosfuel
Project) Ser. A
|
|
4.00
|
|
7/1/2044
|
|
1,500,000
|
|
1,545,729
|
|
|
Tender Option Bond Trust Receipts (Series 2016-XM0386), (University
of Massachusetts Building Authority, Revenue Bonds, Refunding)
Non-recourse, Underlying Coupon Rate (%) 5.00
|
|
16.73
|
|
5/1/2043
|
|
3,695,009
|
b,d,e
|
3,823,633
|
|
|
|
10,548,541
|
|
|
Michigan - 2.4%
|
|
|
|
|
|
|
Michigan Finance Authority, Revenue Bonds, Refunding (Insured;
National Public Finance Guarantee Corp.) Ser. D6
|
|
5.00
|
|
7/1/2036
|
|
500,000
|
|
527,633
|
|
|
Pontiac School District, GO
|
|
4.00
|
|
5/1/2050
|
|
1,000,000
|
|
1,073,269
|
|
|
Tender Option Bond Trust Receipts (Series 2019-XF2837), (Michigan
State Finance Authority, Revenue Bonds (Henry Ford Health System))
Recourse, Underlying Coupon Rate (%) 4.00
|
|
12.85
|
|
11/15/2050
|
|
2,440,000
|
b,d,e
|
2,533,161
|
|
|
|
4,134,063
|
|
|
Minnesota - 1.4%
|
|
|
|
|
|
|
Duluth Economic Development Authority, Revenue Bonds, Refunding
(Essentia Health Obligated Group) Ser. A
|
|
5.00
|
|
2/15/2058
|
|
1,000,000
|
|
1,109,747
|
|
|
St. Paul Minnesota Housing & Redevelopment Authority, Revenue
Bonds, Refunding (HealthEast Care System Project)
|
|
5.00
|
|
11/15/2025
|
|
1,200,000
|
f
|
1,322,764
|
|
|
|
2,432,511
|
|
|
Missouri - 1.7%
|
|
|
|
|
|
|
Kansas City Industrial Development Authority, Revenue Bonds (Kansas
City International Airport Terminal) Ser. A
|
|
5.00
|
|
3/1/2044
|
|
750,000
|
|
825,309
|
|
|
The Missouri Health & Educational Facilities Authority, Revenue
Bonds (Lutheran Senior Services Projects) Ser. A
|
|
5.00
|
|
2/1/2042
|
|
2,000,000
|
|
2,136,126
|
|
|
|
2,961,435
|
|
|
Multi-State - .8%
|
|
|
|
|
|
|
Federal Home Loan Mortgage Corp. Multifamily Variable Rate
Certificates, Revenue Bonds, Ser. M048
|
|
3.15
|
|
1/15/2036
|
|
1,425,000
|
b
|
1,442,455
|
|
10
| |
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
Coupon
Rate (%)
|
|
Maturity
Date
|
|
Principal
Amount ($)
|
|
Value ($)
|
|
|
Long-Term Municipal Investments - 148.9% (continued)
|
|
|
|
|
|
|
Nebraska - .7%
|
|
|
|
|
|
|
Douglas County Hospital Authority No. 2, Revenue Bonds (Children's
Hospital Obligated Group)
|
|
5.00
|
|
11/15/2036
|
|
1,000,000
|
|
1,111,543
|
|
|
Nevada - 1.5%
|
|
|
|
|
|
|
Reno, Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal
Corp.)
|
|
4.00
|
|
6/1/2058
|
|
1,250,000
|
|
1,299,024
|
|
|
Reno, Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal
Corp.)
|
|
4.13
|
|
6/1/2058
|
|
1,250,000
|
|
1,300,701
|
|
|
|
2,599,725
|
|
|
New Hampshire - .6%
|
|
|
|
|
|
|
New Hampshire Business Finance Authority, Revenue Bonds, Refunding
(Springpoint Senior Living Obligated Group)
|
|
4.00
|
|
1/1/2051
|
|
1,000,000
|
|
1,001,710
|
|
|
New Jersey - 8.2%
|
|
|
|
|
|
|
New Jersey Economic Development Authority, Revenue Bonds,
Refunding, Ser. XX
|
|
5.25
|
|
6/15/2027
|
|
1,000,000
|
|
1,087,210
|
|
|
New Jersey Economic Development Authority, Revenue Bonds, Ser.
WW
|
|
5.25
|
|
6/15/2040
|
|
1,180,000
|
|
1,276,485
|
|
|
New Jersey Transportation Trust Fund Authority, Revenue Bonds
|
|
5.00
|
|
6/15/2046
|
|
1,250,000
|
|
1,368,217
|
|
|
New Jersey Transportation Trust Fund Authority, Revenue Bonds
|
|
5.25
|
|
6/15/2043
|
|
2,000,000
|
|
2,228,462
|
|
|
New Jersey Transportation Trust Fund Authority, Revenue Bonds, Ser.
AA
|
|
5.25
|
|
6/15/2033
|
|
1,000,000
|
|
1,085,602
|
|
|
New Jersey Turnpike Authority, Revenue Bonds, Ser. A
|
|
4.00
|
|
1/1/2048
|
|
1,200,000
|
|
1,263,384
|
|
|
South Jersey Port Corp., Revenue Bonds, Ser. B
|
|
5.00
|
|
1/1/2048
|
|
1,000,000
|
|
1,068,056
|
|
|
Tobacco Settlement Financing Corp., Revenue Bonds, Refunding, Ser.
A
|
|
5.00
|
|
6/1/2046
|
|
3,860,000
|
|
4,202,626
|
|
|
Tobacco Settlement Financing Corp., Revenue Bonds, Refunding, Ser.
A
|
|
5.25
|
|
6/1/2046
|
|
390,000
|
|
431,136
|
|
|
|
14,011,178
|
|
|
New York - 5.1%
|
|
|
|
|
|
|
New York Convention Center Development Corp., Revenue Bonds (Hotel
Unit Fee) (Insured; Assured Guaranty Municipal Corp.) Ser. B
|
|
0.00
|
|
11/15/2049
|
|
5,600,000
|
g
|
1,650,111
|
|
11
STATEMENT OF INVESTMENTS (Unaudited) (continued)
| |
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
Coupon
Rate (%)
|
|
Maturity
Date
|
|
Principal
Amount ($)
|
|
Value ($)
|
|
|
Long-Term Municipal Investments - 148.9% (continued)
|
|
|
|
|
|
|
New York - 5.1% (continued)
|
|
|
|
|
|
|
New York Transportation Development Corp., Revenue Bonds (LaGuardia
Airport Terminal B Redevelopment Project) Ser. A
|
|
5.25
|
|
1/1/2050
|
|
1,500,000
|
|
1,569,829
|
|
|
Port Authority of New York & New Jersey, Revenue Bonds,
Refunding, Ser. 223
|
|
4.00
|
|
7/15/2051
|
|
1,250,000
|
|
1,279,216
|
|
|
Tender Option Bond Trust Receipts (Series 2020-XM0826),
(Metropolitan Transportation Authority, Revenue Bonds, Refunding
(Insured; Assured Guaranty Municipal Corp., Ser. C)) Non-recourse,
Underlying Coupon Rate (%) 4.00
|
|
12.73
|
|
11/15/2046
|
|
2,070,000
|
b,d,e
|
2,136,002
|
|
|
Triborough Bridge & Tunnel Authority, Revenue Bonds, Refunding,
Ser. A
|
|
4.00
|
|
5/15/2051
|
|
2,000,000
|
|
2,114,283
|
|
|
|
8,749,441
|
|
|
Ohio - 1.2%
|
|
|
|
|
|
|
Buckeye Tobacco Settlement Financing Authority, Revenue Bonds,
Refunding, Ser. A2
|
|
4.00
|
|
6/1/2048
|
|
1,000,000
|
|
1,004,102
|
|
|
Cuyahoga County, Revenue Bonds, Refunding (The MetroHealth
System)
|
|
5.00
|
|
2/15/2052
|
|
1,000,000
|
|
1,074,026
|
|
|
|
2,078,128
|
|
|
Oregon - .6%
|
|
|
|
|
|
|
Salem Hospital Facility Authority, Revenue Bonds, Refunding
(Capital Manor Project)
|
|
4.00
|
|
5/15/2057
|
|
1,000,000
|
|
986,944
|
|
|
Pennsylvania - 8.6%
|
|
|
|
|
|
|
Allentown School District, GO, Refunding (Insured; Build America
Mutual) Ser. B
|
|
5.00
|
|
2/1/2032
|
|
1,255,000
|
|
1,473,085
|
|
|
Clairton Municipal Authority, Revenue Bonds, Refunding, Ser. B
|
|
5.00
|
|
12/1/2042
|
|
1,000,000
|
|
1,014,333
|
|
|
Montgomery County Industrial Development Authority, Revenue Bonds,
Refunding (ACTS Retirement-Life Communities Obligated Group)
|
|
5.00
|
|
11/15/2036
|
|
1,000,000
|
|
1,099,119
|
|
|
Pennsylvania Economic Development Financing Authority, Revenue
Bonds, Refunding (Presbyterian Senior Living)
|
|
4.00
|
|
7/1/2046
|
|
1,000,000
|
|
1,041,449
|
|
12
| |
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
Coupon
Rate (%)
|
|
Maturity
Date
|
|
Principal
Amount ($)
|
|
Value ($)
|
|
|
Long-Term Municipal Investments - 148.9% (continued)
|
|
|
|
|
|
|
Pennsylvania - 8.6% (continued)
|
|
|
|
|
|
|
Pennsylvania Higher Educational Facilities Authority, Revenue
Bonds, Refunding (University of Sciences)
|
|
5.00
|
|
11/1/2033
|
|
2,000,000
|
|
2,136,759
|
|
|
Pennsylvania Turnpike Commission, Revenue Bonds, Ser. A1
|
|
5.00
|
|
12/1/2046
|
|
1,000,000
|
|
1,098,918
|
|
|
Pennsylvania Turnpike Commission, Revenue Bonds, Ser. B
|
|
4.00
|
|
12/1/2046
|
|
2,000,000
|
|
2,072,537
|
|
|
Pennsylvania Turnpike Commission, Revenue Bonds, Ser. B
|
|
4.00
|
|
12/1/2051
|
|
1,000,000
|
|
1,031,561
|
|
|
Pennsylvania Turnpike Commission, Revenue Bonds, Ser. B
|
|
5.25
|
|
12/1/2048
|
|
1,000,000
|
|
1,149,523
|
|
|
Philadelphia Water & Wastewater, Revenue Bonds, Ser. A
|
|
5.00
|
|
11/1/2050
|
|
1,000,000
|
|
1,150,008
|
|
|
The Philadelphia School District, GO (Insured; State Aid
Withholding) Ser. A
|
|
4.00
|
|
9/1/2036
|
|
1,345,000
|
|
1,463,437
|
|
|
|
14,730,729
|
|
|
Rhode Island - .3%
|
|
|
|
|
|
|
Providence Public Building Authority, Revenue Bonds (Insured;
Assured Guaranty Municipal Corp.) Ser. A
|
|
5.00
|
|
9/15/2037
|
|
500,000
|
|
563,740
|
|
|
South Carolina - 6.9%
|
|
|
|
|
|
|
South Carolina Jobs-Economic Development Authority, Revenue Bonds
(Bishop Gadsden Episcopal Retirement Community Obligated Group)
|
|
5.00
|
|
4/1/2054
|
|
1,000,000
|
|
1,071,758
|
|
|
South Carolina Public Service Authority, Revenue Bonds, Refunding,
Ser. A
|
|
4.00
|
|
12/1/2052
|
|
1,000,000
|
|
1,047,841
|
|
|
Tender Option Bond Trust Receipts (Series 2016-XM0384), (South
Carolina Public Service Authority, Revenue Bonds, Refunding (Santee
Cooper)) Non-recourse, Underlying Coupon Rate (%) 5.13
|
|
13.01
|
|
12/1/2043
|
|
4,800,000
|
b,d,e
|
5,032,916
|
|
|
Tobacco Settlement Revenue Management Authority, Revenue Bonds,
Ser. B
|
|
6.38
|
|
5/15/2030
|
|
3,750,000
|
|
4,737,832
|
|
|
|
11,890,347
|
|
13
STATEMENT OF INVESTMENTS (Unaudited) (continued)
| |
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
Coupon
Rate (%)
|
|
Maturity
Date
|
|
Principal
Amount ($)
|
|
Value ($)
|
|
|
Long-Term Municipal Investments - 148.9% (continued)
|
|
|
|
|
|
|
Tennessee - 1.2%
|
|
|
|
|
|
|
Tender Option Bond Trust Receipts (Series 2016-XM0388),
(Metropolitan Government of Nashville & Davidson County,
Revenue Bonds, Refunding) Non-recourse, Underlying Coupon Rate (%)
5.00
|
|
16.42
|
|
7/1/2040
|
|
2,000,000
|
b,d,e
|
2,079,614
|
|
|
Texas - 12.1%
|
|
|
|
|
|
|
Clifton Higher Education Finance Corp., Revenue Bonds (IDEA Public
Schools) Ser. A
|
|
4.00
|
|
8/15/2047
|
|
2,275,000
|
|
2,355,070
|
|
|
Clifton Higher Education Finance Corp., Revenue Bonds (Uplift
Education) Ser. A
|
|
4.25
|
|
12/1/2034
|
|
1,000,000
|
|
1,024,779
|
|
|
Harris County-Houston Sports Authority, Revenue Bonds, Refunding
(Insured; Assured Guaranty Municipal Corp.) Ser. A
|
|
0.00
|
|
11/15/2052
|
|
4,000,000
|
g
|
963,577
|
|
|
New Hope Cultural Education Facilities Finance Corp., Revenue
Bonds, Refunding (Webminister Project)
|
|
4.00
|
|
11/1/2049
|
|
1,600,000
|
|
1,619,683
|
|
|
San Antonio Education Facilities Corp., Revenue Bonds, Refunding
(University of the Incarnate Word)
|
|
4.00
|
|
4/1/2046
|
|
1,675,000
|
|
1,697,423
|
|
|
Tender Option Bond Trust Receipts (Series 2016-XM0377), (San
Antonio, Revenue Bonds) Non-recourse, Underlying Coupon Rate (%)
5.00
|
|
16.75
|
|
2/1/2043
|
|
6,300,000
|
b,d,e
|
6,472,541
|
|
|
Texas Private Activity Bond Surface Transportation Corp., Revenue
Bonds (Blueridge Transportation Group)
|
|
5.00
|
|
12/31/2055
|
|
1,000,000
|
|
1,060,138
|
|
|
Texas Private Activity Bond Surface Transportation Corp., Revenue
Bonds (Blueridge Transportation Group)
|
|
5.00
|
|
12/31/2050
|
|
1,200,000
|
|
1,275,000
|
|
|
Texas Private Activity Bond Surface Transportation Corp., Revenue
Bonds (Segment 3C Project)
|
|
5.00
|
|
6/30/2058
|
|
2,500,000
|
|
2,747,904
|
|
|
Texas Private Activity Bond Surface Transportation Corp., Revenue
Bonds, Refunding (LBJ Infrastructure Group)
|
|
4.00
|
|
12/31/2039
|
|
1,600,000
|
|
1,668,879
|
|
|
|
20,884,994
|
|
14
| |
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
Coupon
Rate (%)
|
|
Maturity
Date
|
|
Principal
Amount ($)
|
|
Value ($)
|
|
|
Long-Term Municipal Investments - 148.9% (continued)
|
|
|
|
|
|
|
U.S. Related - .6%
|
|
|
|
|
|
|
Puerto Rico Highway & Transportation Authority, Revenue Bonds,
Refunding (Insured; Assured Guaranty Municipal Corp.) Ser. CC
|
|
5.25
|
|
7/1/2034
|
|
1,000,000
|
|
1,050,894
|
|
|
Utah - 1.5%
|
|
|
|
|
|
|
Utah Charter School Finance Authority, Revenue Bonds, Refunding
(Summit Academy) Ser. A
|
|
5.00
|
|
4/15/2031
|
|
860,000
|
|
977,564
|
|
|
Utah Infrastructure Agency, Revenue Bonds, Refunding, Ser. A
|
|
5.00
|
|
10/15/2037
|
|
1,500,000
|
|
1,634,925
|
|
|
|
2,612,489
|
|
|
Virginia - 2.5%
|
|
|
|
|
|
|
Virginia Small Business Financing Authority, Revenue Bonds
(Transform 66 P3 Project)
|
|
5.00
|
|
12/31/2052
|
|
2,000,000
|
|
2,216,019
|
|
|
Virginia Small Business Financing Authority, Revenue Bonds,
Refunding
|
|
4.00
|
|
1/1/2048
|
|
1,000,000
|
|
1,015,752
|
|
|
Virginia Small Business Financing Authority, Revenue Bonds,
Refunding
|
|
5.00
|
|
12/31/2057
|
|
1,000,000
|
|
1,104,262
|
|
|
|
4,336,033
|
|
15
STATEMENT OF INVESTMENTS (Unaudited) (continued)
| |
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
Coupon
Rate (%)
|
|
Maturity
Date
|
|
Principal
Amount ($)
|
|
Value ($)
|
|
|
Long-Term Municipal Investments - 148.9% (continued)
|
|
|
|
|
|
|
Washington - 8.8%
|
|
|
|
|
|
|
Port of Seattle, Revenue Bonds
|
|
4.00
|
|
4/1/2044
|
|
1,000,000
|
|
1,048,562
|
|
|
Tender Option Bond Trust Receipts (Series 2018-XM0680), (Washington
Convention Center Public Facilities District, Revenue Bonds)
Non-recourse, Underlying Coupon Rate (%) 5.00
|
|
8.66
|
|
7/1/2058
|
|
13,000,000
|
b,d,e
|
14,142,638
|
|
|
|
15,191,200
|
|
|
Total Investments
(cost $250,503,420)
|
|
148.9%
|
255,967,414
|
|
|
Liabilities, Less Cash and Receivables
|
|
(31.3%)
|
(53,796,019)
|
|
|
Preferred Stock, at redemption value
|
|
(17.6%)
|
(30,225,000)
|
|
|
Net Assets Applicable to Common Shareholders
|
|
100.0%
|
171,946,395
|
|
a Zero
coupon until a specified date at which time the stated coupon rate
becomes effective until maturity.
b Security
exempt from registration pursuant to Rule 144A under the Securities
Act of 1933. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At
March 31, 2022, these securities were valued at $91,681,034 or
53.32% of net assets.
c These
securities have a put feature; the date shown represents the put
date and the bond holder can take a specific action to retain the
bond after the put date.
d The
Variable Rate shall be determined by the Remarketing Agent in its
sole discretion based on prevailing market conditions and may, but
need not, be established by reference to one or more financial
indices.
e Collateral
for floating rate borrowings. The coupon rate given represents the
current interest rate for the inverse floating rate
security.
f These
securities are prerefunded; the date shown represents the
prerefunded date. Bonds which are prerefunded are collateralized by
U.S. Government securities which are held in escrow and are used to
pay principal and interest on the municipal issue and to retire the
bonds in full at the earliest refunding date.
g Security
issued with a zero coupon. Income is recognized through the
accretion of discount.
16
| |
|
|
Portfolio Summary (Unaudited)
†
|
Value (%)
|
|
General
|
27.9
|
|
Education
|
22.9
|
|
Medical
|
20.5
|
|
Transportation
|
16.3
|
|
Airport
|
10.5
|
|
Nursing Homes
|
8.8
|
|
Utilities
|
8.3
|
|
Tobacco Settlement
|
8.3
|
|
Water
|
7.7
|
|
General Obligation
|
4.4
|
|
Power
|
4.3
|
|
Development
|
2.9
|
|
Prerefunded
|
2.7
|
|
School District
|
2.3
|
|
Multifamily Housing
|
.8
|
|
Student Loan
|
.3
|
|
|
148.9
|
† Based
on net assets.
See notes to financial statements.
17
| |
|
|
|
|
|
|
Summary of Abbreviations
(Unaudited)
|
|
|
|
ABAG
|
Association of Bay Area Governments
|
AGC
|
ACE Guaranty Corporation
|
|
AGIC
|
Asset Guaranty Insurance Company
|
AMBAC
|
American Municipal Bond Assurance Corporation
|
|
BAN
|
Bond Anticipation Notes
|
BSBY
|
Bloomberg Short-Term Bank Yield Index
|
|
CIFG
|
CDC Ixis Financial Guaranty
|
COP
|
Certificate of Participation
|
|
CP
|
Commercial Paper
|
DRIVERS
|
Derivative Inverse Tax-Exempt Receipts
|
|
EFFR
|
Effective Federal Funds Rate
|
FGIC
|
Financial Guaranty Insurance Company
|
|
FHA
|
Federal Housing Administration
|
FHLB
|
Federal Home Loan Bank
|
|
FHLMC
|
Federal Home Loan Mortgage Corporation
|
FNMA
|
Federal National Mortgage Association
|
|
GAN
|
Grant Anticipation Notes
|
GIC
|
Guaranteed Investment Contract
|
|
GNMA
|
Government National Mortgage Association
|
GO
|
General Obligation
|
|
IDC
|
Industrial Development Corporation
|
LIBOR
|
London Interbank Offered Rate
|
|
LOC
|
Letter of Credit
|
LR
|
Lease Revenue
|
|
NAN
|
Note Anticipation Notes
|
MFHR
|
Multi-Family Housing Revenue
|
|
MFMR
|
Multi-Family Mortgage Revenue
|
MUNIPSA
|
Securities Industry and Financial Markets Association Municipal
Swap Index Yield
|
|
OBFR
|
Overnight Bank Funding Rate
|
PILOT
|
Payment in Lieu of Taxes
|
|
PRIME
|
Prime Lending Rate
|
PUTTERS
|
Puttable Tax-Exempt Receipts
|
|
RAC
|
Revenue Anticipation Certificates
|
RAN
|
Revenue Anticipation Notes
|
|
RIB
|
Residual Interest Bonds
|
SFHR
|
Single Family Housing Revenue
|
|
SFMR
|
Single Family Mortgage Revenue
|
SOFR
|
Secured Overnight Financing Rate
|
|
TAN
|
Tax Anticipation Notes
|
TRAN
|
Tax and Revenue Anticipation Notes
|
|
U.S. T-BILL
|
U.S. Treasury Bill Money Market Yield
|
XLCA
|
XL Capital Assurance
|
|
|
|
|
|
See notes to financial statements.
18
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2022 (Unaudited)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
|
|
Value
|
|
|
Assets ($):
|
|
|
|
|
|
Investments in securities—See Statement of Investments
|
250,503,420
|
|
255,967,414
|
|
|
Cash
|
|
|
|
|
1,363,016
|
|
|
Interest receivable
|
|
3,288,103
|
|
|
Receivable for investment securities sold
|
|
1,283,848
|
|
|
Prepaid expenses
|
|
|
|
|
20,973
|
|
|
|
|
|
|
|
261,923,354
|
|
|
Liabilities ($):
|
|
|
|
|
|
Due to BNY Mellon Investment Adviser, Inc. and affiliates—Note
2(b)
|
|
126,307
|
|
|
Payable for floating rate notes issued—Note 3
|
|
58,099,592
|
|
|
Payable for investment securities purchased
|
|
1,276,108
|
|
|
Interest and expense payable related to
floating rate notes issued—Note 3
|
|
132,294
|
|
|
Commissions payable—Note 1
|
|
14,121
|
|
|
Dividends payable to Preferred Shareholders
|
|
2,727
|
|
|
Other accrued expenses
|
|
|
|
|
100,810
|
|
|
|
|
|
|
|
59,751,959
|
|
|
Auction Preferred Stock, Series A and B, par value $.001 per share
(1,209 shares issued and outstanding at $25,000 per share
liquidation preference)—Note 1
|
|
30,225,000
|
|
|
Net Assets Applicable to Common Shareholders ($)
|
|
|
171,946,395
|
|
|
Composition of Net Assets ($):
|
|
|
|
|
|
Common Stock, par value, $.001 per share
(20,757,267 shares issued and outstanding)
|
|
|
|
|
20,757
|
|
|
Paid-in capital
|
|
|
|
|
179,014,708
|
|
|
Total distributable earnings (loss)
|
|
|
|
|
(7,089,070)
|
|
|
Net Assets Applicable to Common Shareholders ($)
|
|
|
171,946,395
|
|
| |
|
|
|
|
|
Shares Outstanding
|
|
|
|
(110 million shares authorized)
|
20,757,267
|
|
|
Net Asset Value Per Share of Common Stock ($)
|
|
8.28
|
|
|
|
|
|
|
|
|
See notes to financial statements.
|
|
|
|
|
19
STATEMENT OF OPERATIONS
Mix Months Ended March 31, 2022 (Unaudited)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Income ($):
|
|
|
|
|
|
Interest Income
|
|
|
5,034,048
|
|
|
Expenses:
|
|
|
|
|
|
Management fee—Note 2(a)
|
|
|
760,635
|
|
|
Interest and expense related to floating rate notes issued—Note
3
|
|
|
225,155
|
|
|
Professional fees
|
|
|
88,169
|
|
|
Directors’ fees and expenses—Note 2(c)
|
|
|
48,311
|
|
|
Commission fees—Note 1
|
|
|
24,447
|
|
|
Shareholders’ reports
|
|
|
20,217
|
|
|
Shareholder servicing costs
|
|
|
11,094
|
|
|
Registration fees
|
|
|
8,333
|
|
|
Chief Compliance Officer fees—Note 2(b)
|
|
|
4,731
|
|
|
Custodian fees—Note 2(b)
|
|
|
2,304
|
|
|
Miscellaneous
|
|
|
19,205
|
|
|
Total Expenses
|
|
|
1,212,601
|
|
|
Net Investment Income
|
|
|
3,821,447
|
|
|
Realized and Unrealized Gain (Loss) on Investments—Note 3 ($):
|
|
|
|
Net realized gain (loss) on investments
|
(1,288,337)
|
|
|
Net change in unrealized appreciation (depreciation) on
investments
|
(19,631,668)
|
|
|
Net Realized and Unrealized Gain (Loss) on Investments
|
|
|
(20,920,005)
|
|
|
Dividends to Preferred Shareholders
|
|
|
(26,386)
|
|
|
Net (Decrease) in Net Assets Applicable to Common
Shareholders Resulting from Operations
|
|
(17,124,944)
|
|
|
|
|
|
|
|
|
|
|
See notes to financial statements.
|
|
|
|
|
|
20
STATEMENT OF CASH FLOWS
Six Months Ended March 31, 2022 (Unaudited)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Operating Activities ($):
|
|
|
|
|
|
|
Purchases of portfolio securities
|
|
(33,670,539)
|
|
|
|
|
Proceeds from sales of portfolio securities
|
44,046,996
|
|
|
|
|
Dividends paid to Preferred Shareholders
|
(23,983)
|
|
|
|
|
Interest income received
|
|
5,246,354
|
|
|
|
|
Interest and expense related to floating rate notes issued
|
|
(247,064)
|
|
|
|
|
Paid to BNY Mellon Investment Adviser, Inc. and affiliates
|
|
(774,784)
|
|
|
|
|
Operating expenses paid
|
|
(245,432)
|
|
|
|
|
Net Cash Provided (or Used) in Operating Activities
|
|
|
|
14,331,548
|
|
|
Cash Flows from Financing Activities ($):
|
|
|
|
|
|
|
Dividends paid to Common Shareholders
|
|
(4,426,843)
|
|
|
|
|
Decrease in payable for floating rate notes issued
|
|
(9,330,000)
|
|
|
|
|
Net Cash Provided (or Used) in Financing Activities
|
|
(13,756,843)
|
|
|
Net Increase (Decrease) in Cash
|
|
574,705
|
|
|
Cash at beginning of period
|
|
788,311
|
|
|
Cash at End of Period
|
|
1,363,016
|
|
|
Reconciliation of Net Increase (Decrease) in Net Assets Applicable
to
|
|
|
|
|
|
Common Shareholders Resulting from Operations to
|
|
|
|
|
|
Net Cash Provided (or Used) in Operating Activities ($):
|
|
|
|
|
Net (Decrease) in Net Assets Resulting From Operations
|
|
(17,124,944)
|
|
|
Adjustments to Reconcile Net Increase (Decrease) in Net Assets
|
|
|
|
|
|
Applicable to Common Shareholders Resulting from
|
|
|
|
|
|
Operations to Net Cash Provided (or Used) in Operating Activities
($):
|
|
|
|
|
Decrease in investments in securities at cost
|
|
11,672,534
|
|
|
Decrease in interest receivable
|
|
212,306
|
|
|
Increase in receivable for investment securities sold
|
|
(1,283,848)
|
|
|
Increase in prepaid expenses
|
|
(12,147)
|
|
|
Decrease in Due to BNY Mellon Investment Adviser, Inc. and
affiliates
|
|
(7,114)
|
|
|
Increase in payable for investment securities purchased
|
|
1,276,108
|
|
|
Decrease in interest and expense payable related to floating rate
notes issued
|
|
(21,909)
|
|
|
Increase in dividends payable to Preferred Shareholders
|
|
2,403
|
|
|
Decrease in commissions payable and other accrued expenses
|
|
(13,509)
|
|
|
Net change in unrealized (appreciation) depreciation on
investments
|
|
19,631,668
|
|
|
Net Cash Provided (or Used) in Operating Activities
|
|
14,331,548
|
|
|
Supplemental Disclosure Cash Flow Information ($):
|
|
|
|
|
Non-cash financing activities:
|
|
|
|
|
Reinvestment of dividends
|
|
17,869
|
|
|
|
|
|
|
|
|
|
|
See notes to financial statements.
|
|
|
|
|
|
21
STATEMENT OF CHANGES IN NET ASSETS
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
March 31, 2022 (Unaudited)
|
|
Year Ended
September 30, 2021
|
|
|
Operations ($):
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
3,821,447
|
|
|
|
8,476,662
|
|
|
Net realized gain (loss) on investments
|
|
(1,288,337)
|
|
|
|
513,504
|
|
|
Net change in unrealized appreciation
(depreciation) on investments
|
|
(19,631,668)
|
|
|
|
4,805,711
|
|
|
Dividends to Preferred Shareholders
|
|
|
(26,386)
|
|
|
|
(36,373)
|
|
|
Net Increase (Decrease) in Net Assets Applicable
to Common Shareholders Resulting from
Operations
|
(17,124,944)
|
|
|
|
13,759,504
|
|
|
Distributions ($):
|
|
|
Distributions to Common Shareholders
|
|
|
(3,736,249)
|
|
|
|
(8,715,428)
|
|
|
Capital Stock Transactions ($):
|
|
|
Distributions reinvested
|
|
|
17,869
|
|
|
|
42,929
|
|
|
Increase (Decrease) in Net Assets
from Capital Stock Transactions
|
17,869
|
|
|
|
42,929
|
|
|
Total Increase (Decrease) in Net Assets
Applicable to Common Shareholders
|
(20,843,324)
|
|
|
|
5,087,005
|
|
|
Net Assets Applicable to Common Shareholders ($):
|
|
|
Beginning of Period
|
|
|
192,789,719
|
|
|
|
187,702,714
|
|
|
End of Period
|
|
|
171,946,395
|
|
|
|
192,789,719
|
|
|
Capital Share Transactions (Common Shares):
|
|
|
Shares issued for distributions reinvested
|
|
|
1,936
|
|
|
|
4,533
|
|
|
Net Increase (Decrease) in Shares Outstanding
|
1,936
|
|
|
|
4,533
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See notes to financial statements.
|
|
|
|
|
|
|
|
|
22
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal
periods indicated. Market price total return is calculated assuming
an initial investment made at the market price at the beginning of
the period, reinvestment of all dividends and distributions at
market price during the period, and sale at the market price on the
last day of the period. These figures have been derived from the
fund’s financial statements and, with respect to common stock,
market price data for the fund’s common shares.
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
March 31, 2022
|
Year Ended September 30,
|
|
|
(Unaudited)
|
2021
|
2020
|
2019
|
2018
|
2017
|
|
Per Share Data ($):
|
|
|
|
|
|
|
|
Net asset value, beginning of period
|
9.29
|
9.05
|
9.36
|
8.90
|
9.35
|
9.84
|
|
Investment Operations:
|
|
|
|
|
|
|
|
Net investment incomea
|
.18
|
.41
|
.43
|
.46
|
.50
|
.52
|
|
Net realized and unrealized gain
(loss) on investments
|
(1.01)
|
.25
|
(.30)
|
.46
|
(.52)
|
(.49)
|
|
Dividends to Preferred Shareholders
from net investment income
|
(.00)b
|
(.00)b
|
(.02)
|
(.04)
|
(.04)
|
(.03)
|
|
Total from Investment Operations
|
(.83)
|
.66
|
.11
|
.88
|
(.06)
|
-
|
|
Dividends from net investment
income
|
(.18)
|
(.42)
|
(.42)
|
(.42)
|
(.44)
|
(.49)
|
|
Net asset value resulting from
Auction Preferred Stock
tendered as a discount
|
-
|
-
|
-
|
-
|
.05
|
-
|
|
Net asset value, end of period
|
8.28
|
9.29
|
9.05
|
9.36
|
8.90
|
9.35
|
|
Market value, end of period
|
7.59
|
9.63
|
8.63
|
9.35
|
7.83
|
9.13
|
|
Market Price Total Return (%)
|
(19.48)c
|
16.90
|
(3.13)
|
25.58
|
(9.55)
|
.44
|
23
FINANCIAL HIGHLIGHTS (continued)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
March 31, 2022
|
Year Ended September 30,
|
|
(Unaudited)
|
2021
|
2020
|
2019
|
2018
|
2017
|
|
Ratios/Supplemental Data (%):
|
|
|
|
|
|
|
|
Ratio of total expenses to average
net assets applicable to
Common Stockd
|
1.30e
|
1.25
|
1.68
|
1.89
|
1.75
|
1.48
|
|
Ratio of net expenses to average net
assets applicable to Common Stockd
|
1.30e
|
1.25
|
1.67
|
1.89
|
1.75
|
1.48
|
|
Ratio of interest and expense related
to floating rate notes issued to
average net assets applicable to
Common Stockd
|
.24e
|
.25
|
.67
|
.90
|
.60
|
.37
|
|
Ratio of net investment income
to average net assets applicable to
Common Stockd
|
4.08e
|
4.37
|
4.78
|
5.04
|
5.46
|
5.57
|
|
Ratio of total expenses to
total average net assets
|
1.12e
|
1.08
|
1.44
|
1.63
|
1.45
|
1.18
|
|
Ratio of net expense to total average
net assets
|
1.12e
|
1.08
|
1.44
|
1.63
|
1.45
|
1.18
|
|
Ratio of interest and expense related
to floating rate notes issued to total
average net assets
|
.21e
|
.22
|
.58
|
.78
|
.50
|
.29
|
|
Ratio of net investment income to
total average net assets
|
3.52e
|
3.78
|
4.12
|
4.34
|
4.52
|
4.43
|
|
Portfolio Turnover Rate
|
16.60c
|
11.33
|
26.85
|
31.62
|
17.70
|
12.49
|
|
Asset Coverage of Preferred Stock,
end of period
|
669
|
738
|
721
|
742
|
711
|
488
|
|
Net Assets applicable to
Common Shareholders,
end of period ($ x 1,000)
|
171,946
|
192,790
|
187,703
|
194,114
|
184,587
|
194,063
|
|
Preferred Stock Outstanding,
end of period ($ x 1,000)
|
30,225
|
30,225
|
30,225
|
30,225
|
30,225
|
50,000
|
|
Floating Rate Notes Outstanding,
end of period ($ x 1,000)
|
58,100
|
67,430
|
71,180
|
85,492
|
74,682
|
51,742
|
a Based
on average common shares outstanding.
b Amount
represents less than $.01 per share.
c Not
annualized.
d Does
not reflect the effect of dividends to Preferred
Shareholders.
e Annualized.
See notes to financial statements.
24
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
NOTE 1—Significant Accounting Policies:
BNY Mellon Municipal Income, Inc. (the “fund”), which is registered
under the Investment Company Act of 1940, as amended (the “Act”),
is a diversified closed-end management investment company. The
fund’s investment objective is to maximize current income exempt
from federal income tax to the extent consistent with the
preservation of capital. BNY Mellon Investment Adviser, Inc. (the
“Adviser”), a wholly-owned subsidiary of The Bank of New York
Mellon Corporation (“BNY Mellon”), serves as the fund’s investment
adviser. Insight North America LLC (the “Sub-adviser”), a
wholly-owned subsidiary of BNY Mellon and an affiliate of the
Adviser, serves as the fund’s sub-investment adviser. The fund’s
Common Stock trades on the NYSE American under the ticker symbol
DMF.
The fund has outstanding 616 Series A shares and 593 Series B
shares, Auction Preferred Stock (“APS”), with a liquidation
preference of $25,000 per share (plus an amount equal to
accumulated but unpaid dividends upon liquidation). APS dividend
rates are determined pursuant to periodic auctions or by reference
to a market rate. Deutsche Bank Trust Company America, as the
Auction Agent, receives a fee from the fund for its services in
connection with such auctions. The fund also compensates
broker-dealers generally at an annual rate of .15%-.25% of the
purchase price of shares of APS.
The fund is subject to certain restrictions relating to the APS.
Failure to comply with these restrictions could preclude the fund
from declaring any distributions to shareholders of Common Stock
(“Common Shareholders”) or repurchasing shares of Common Stock
and/or could trigger the mandatory redemption of APS at liquidation
value. Thus, redemptions of APS may be deemed to be outside of the
control of the fund.
The holders of APS, voting as a separate class, have the right to
elect at least two directors. The holders of APS will vote as a
separate class on certain other matters, as required by law. The
fund’s Board of Directors (the “Board”) has designated Nathan
Leventhal and Benaree Pratt Wiley as directors to be elected by the
holders of APS.
The Financial Accounting Standards Board (“FASB”) Accounting
Standards Codification (“ASC”) is the exclusive reference of
authoritative U.S. generally accepted accounting principles
(“GAAP”) recognized by the FASB to be applied by nongovernmental
entities. Rules and interpretive releases of the Securities and
Exchange Commission (“SEC”) under authority of federal laws are
also sources of authoritative GAAP for SEC
25
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(continued)
registrants. The fund is an investment company and applies the
accounting and reporting guidance of the FASB ASC Topic 946
Financial Services-Investment Companies. The fund’s financial
statements are prepared in accordance with GAAP, which may require
the use of management estimates and assumptions. Actual results
could differ from those estimates.
The fund
enters into contracts that contain a variety of indemnifications.
The fund’s maximum exposure under these arrangements is unknown.
The fund does not anticipate recognizing any loss related to these
arrangements.
(a) Portfolio valuation:
The fair value of a financial instrument is the amount 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 (i.e., the exit price). GAAP establishes a fair value
hierarchy that prioritizes the inputs of valuation techniques used
to measure fair value. This hierarchy gives the highest priority to
unadjusted quoted prices in active markets for identical assets or
liabilities (Level 1 measurements) and the lowest priority to
unobservable inputs (Level 3 measurements).
Additionally, GAAP provides guidance on determining whether the
volume and activity in a market has decreased significantly and
whether such a decrease in activity results in transactions that
are not orderly. GAAP requires enhanced disclosures around
valuation inputs and techniques used during annual and interim
periods.
Various inputs are used in determining the value of the fund’s
investments relating to fair value measurements. These inputs are
summarized in the three broad levels listed below:
Level 1—unadjusted
quoted prices in active markets for identical
investments.
Level 2—other
significant observable inputs (including quoted prices for similar
investments, interest rates, prepayment speeds, credit risk,
etc.).
Level 3—significant
unobservable inputs (including the fund’s own assumptions in
determining the fair value of investments).
The inputs or methodology used for valuing securities are not
necessarily an indication of the risk associated with investing in
those securities.
Changes in valuation techniques may result in transfers in or out
of an assigned level within the disclosure hierarchy. Valuation
techniques used to value the fund’s investments are as follows:
26
Investments in securities, excluding short-term investment (other
than U.S. Treasury Bills) are valued each business day by an
independent pricing service (the “Service”) approved by the Board.
Investments for which quoted bid prices are readily available and
are representative of the bid side of the market in the judgment of
the Service are valued at the mean between the quoted bid prices
(as obtained by the Service from dealers in such securities) and
asked prices (as calculated by the Service based upon its
evaluation of the market for such securities). Debt investments
(which constitute a majority of the portfolio securities) are
carried at fair value as determined by the Service, based on
methods which include consideration of the following: yields or
prices of municipal securities of comparable quality, coupon,
maturity and type; indications as to values from dealers; and
general market conditions. All of the preceding securities are
generally categorized within Level 2 of the fair value
hierarchy.
The Service is engaged under the general oversight of the
Board.
When market quotations or official closing prices are not readily
available, or are determined not to accurately reflect fair value,
such as when the value of a security has been significantly
affected by events after the close of the exchange or market on
which the security is principally traded, but before the fund
calculates its net asset value, the fund may value these
investments at fair value as determined in accordance with the
procedures approved by the Board. Certain factors may be considered
when fair valuing investments such as: fundamental analytical data,
the nature and duration of restrictions on disposition, an
evaluation of the forces that influence the market in which the
securities are purchased and sold, and public trading in similar
securities of the issuer or comparable issuers. These securities
are either categorized within Level 2 or 3 of the fair value
hierarchy depending on the relevant inputs used.
For securities where observable inputs are limited, assumptions
about market activity and risk are used and such securities are
generally categorized within Level 3 of the fair value
hierarchy.
The following is a summary of the inputs used as of March 31,
2022
in valuing the fund’s investments:
27
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(continued)
| |
|
|
|
|
|
|
|
|
Level 1-Unadjusted Quoted Prices
|
Level 2- Other Significant Observable Inputs
|
|
Level 3-Significant Unobservable Inputs
|
Total
|
|
|
Assets ($)
|
|
|
|
Investments in Securities:†
|
|
|
|
Municipal Securities
|
-
|
255,967,414
|
|
-
|
255,967,414
|
|
|
Liabilities ($)
|
|
|
|
Other Financial Instruments:
|
|
|
|
Floating Rate Notes††
|
-
|
(58,099,592)
|
|
-
|
(58,099,592)
|
|
† See
Statement of Investments for additional detailed categorizations,
if any.
†† Certain
of the fund’s liabilities are held at carrying amount, which
approximates fair value for financial reporting
purposes.
(b) Securities transactions and investment income:
Securities transactions are recorded on a trade date basis.
Realized gains and losses from securities transactions are recorded
on the identified cost basis. Interest income, adjusted for
accretion of discount and amortization of premium on investments,
is earned from settlement date and recognized on the accrual basis.
Securities purchased or sold on a when-issued or delayed delivery
basis may be settled a month or more after the trade
date.
(c) Risk:
The value of the securities in which the fund invests may be
affected by political, regulatory, economic and social
developments, and developments that impact specific economic
sectors, industries or segments of the market. In addition,
turbulence in financial markets and reduced liquidity in equity,
credit and/or fixed income markets may negatively affect many
issuers, which could adversely affect the fund. Global economies
and financial markets are becoming increasingly interconnected, and
conditions and events in one country, region or financial market
may adversely impact issuers in a different country, region or
financial market. These risks may be magnified if certain events or
developments adversely interrupt the global supply chain; in these
and other circumstances, such risks might affect companies
world-wide. Recent examples include pandemic risks related to
COVID-19 and aggressive measures taken world-wide in response by
governments, including closing borders, restricting international
and domestic travel, and the imposition of prolonged quarantines of
large populations, and by businesses, including changes to
operations and reducing staff. The effects of COVID-19 have
contributed to increased volatility in global markets and will
likely affect certain countries, companies, industries and market
sectors more dramatically than others. The COVID-19 pandemic has
had, and any other outbreak of an infectious disease or other
serious public health concern could have, a significant negative
impact on economic and market
28
conditions and could trigger a prolonged period of global economic
slowdown. To the extent the fund may overweight its investments in
certain countries, companies, industries or market sectors, such
positions will increase the fund’s exposure to risk of loss from
adverse developments affecting those countries, companies,
industries or sectors.
(d) Dividends and distributions to Common Shareholders:
Dividends and distributions are recorded on the ex-dividend date.
Dividends from net investment income are normally declared and paid
monthly. Dividends from net realized capital gains, if any, are
normally declared and paid annually, but the fund may make
distributions on a more frequent basis to comply with the
distribution requirements of the Internal Revenue Code of 1986, as
amended (the “Code”). To the extent that net realized capital gains
can be offset by capital loss carryovers, it is the policy of the
fund not to distribute such gains. Income and capital gain
distributions are determined in accordance with income tax
regulations, which may differ from GAAP.
Common Shareholders will have their distributions reinvested in
additional shares of the fund, unless such Common Shareholders
elect to receive cash, at the lower of the market price or net
asset value per share (but not less than 95% of the market price).
If market price is equal to or exceeds net asset value, shares will
be issued at net asset value. If net asset value exceeds market
price, Computershare Inc., the transfer agent for the fund’s Common
Stock, will buy fund shares in the open market and reinvest those
shares accordingly.
On March 30, 2022, the Board declared a cash dividend of $.029 per
share from net investment income, payable on April 29, 2022 to
Common Shareholders of record as of the close of business on April
14, 2022. The ex-dividend date was April 13, 2022.
(e) Dividends and distributions to shareholders of APS:
Dividends, which are cumulative, are generally reset every seven
days for each series of APS pursuant to a process specified in
related fund charter documents. Dividend rates as of March 31,
2022, for each series of APS were as follows: Series A–.785% and
Series B–.785%. These rates reflect the “maximum rates” under the
governing instruments as a result of “failed auctions” in which
sufficient clearing bids are not received. The average dividend
rates for the period ended March 31, 2022 for each series of APS
were as follows: Series A–.180% and Series B–.170%.
(f) Federal income taxes:
It is the policy of the fund to continue to qualify as a regulated
investment company, which can distribute tax-exempt dividends, by
complying with the applicable provisions of the
29
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(continued)
Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all federal income
and excise taxes.
As of and during the period ended March 31, 2022, the fund did not
have any liabilities for any uncertain tax positions. The fund
recognizes interest and penalties, if any, related to uncertain tax
positions as income tax expense in the Statement of Operations.
During the period ended March 31, 2022, the fund did not incur any
interest or penalties.
Each tax year in the three-year period ended September 30, 2021
remains subject to examination by the Internal Revenue Service and
state taxing authorities.
The fund is permitted to carry forward capital losses for an
unlimited period. Furthermore, capital loss carryovers retain their
character as either short-term or long-term capital losses.
The fund has an unused capital loss carryover of $11,464,567
available for federal income tax purposes to be applied against
future net realized capital gains, if any, realized subsequent to
September 30, 2021. The fund has $5,888,311 of short-term capital
losses and $5,576,256 of long-term capital losses which can be
carried forward for an unlimited period.
The tax character of distributions paid to shareholders during the
fiscal year ended September 30, 2021 was as follows: tax-exempt
income $8,751,801. The tax character of current year distributions
will be determined at the end of the current fiscal year.
(g) New accounting pronouncements:
In March 2020, the FASB issued Accounting Standards Update 2020-04,
Reference Rate Reform (Topic 848): Facilitation of the Effects of
Reference Rate Reform on Financial Reporting (“ASU 2020-04”), and
in January 2021, the FASB issued Accounting Standards Update
2021-01, Reference Rate Reform (Topic 848): Scope (“ASU 2021-01”),
which provides optional, temporary relief with respect to the
financial reporting of contracts subject to certain types of
modifications due to the planned discontinuation of the LIBOR and
other interbank offered rates as of the end of 2021. The temporary
relief provided by ASU 2020-04 and ASU 2021-01 is effective for
certain reference rate-related contract modifications that occur
during the period from March 12, 2020 through December 31, 2022.
Management is evaluating the impact of ASU 2020-04 and ASU
2021-01
on the fund’s investments, derivatives, debt and other contracts
that will undergo reference rate-related modifications as a result
of the reference rate reform. Management is also currently actively
working with other financial institutions and counterparties to
modify contracts as required by applicable regulation and within
the regulatory deadlines.
30
NOTE 2—Management Fee, Sub-Investment Advisory Fee and Other
Transactions with Affiliates:
(a)
Pursuant to a management agreement (the “Agreement”) with the
Adviser, the management fee is computed at the annual rate of .70%
of the value of the fund’s average weekly net assets (including net
assets representing APS outstanding) and is payable monthly. The
Agreement provides that if in any full fiscal year the aggregate
expenses of the fund (excluding taxes, interest on borrowings,
brokerage fees and extraordinary expenses) exceed the expense
limitation of any state having jurisdiction over the fund, the fund
may deduct from payments to be made to the Adviser, or the Adviser
will bear, the amount of such excess to the extent required by
state law. During the period ended March 31, 2022, there was no
expense reimbursement pursuant to the Agreement.
Pursuant to a sub-investment advisory agreement between the Adviser
and the Sub-adviser, the Adviser pays the Sub-adviser a monthly fee
at an annual rate of .336% of the value of the fund’s average
weekly net assets, (including net assets representing APS
outstanding).
(b)
The fund compensates The Bank of New York Mellon, a subsidiary of
BNY Mellon and an affiliate of the Adviser, under a custody
agreement, for providing custodial services for the fund. These
fees are determined based on net assets and transaction activity.
During the period ended March 31, 2022,
the fund was charged $2,304
pursuant to the custody agreement.
The fund has an arrangement with the custodian whereby the fund may
receive earnings credits when positive cash balances are
maintained, which are used to offset custody fees. For financial
reporting purposes, the fund includes net earnings credits, if any,
as an expense offset in the Statement of Operations.
During the period ended March 31, 2022, the fund was charged $4,731
for services performed by the Chief Compliance Officer and his
staff. These fees are included in Chief Compliance Officer fees in
the Statement of Operations.
The components of “Due to BNY Mellon Investment Adviser, Inc. and
affiliates” in the Statement of Assets and Liabilities consist of:
management fees of $122,737, custodian fees of $1,219 and Chief
Compliance Officer fees of $2,351.
(c)
Each Board member also serves as a Board member of other funds in
the BNY Mellon Family of Funds complex. Annual retainer fees and
attendance fees are allocated to each fund based on net
assets.
31
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(continued)
NOTE 3—Securities Transactions:
The aggregate amount of purchases and sales of investment
securities, excluding short-term securities, during the period
ended March 31, 2022, amounted to $35,546,174 and $35,999,598,
respectively.
Inverse Floater Securities:
The fund participates in secondary inverse floater structures in
which fixed-rate, tax-exempt municipal bonds are transferred to a
trust (the “Inverse Floater Trust”). The Inverse Floater Trust
typically issues two variable rate securities that are
collateralized by the cash flows of the fixed-rate, tax-exempt
municipal bonds. One of these variable rate securities pays
interest based on a short-term floating rate set by a remarketing
agent at predetermined intervals (“Trust Certificates”). A residual
interest tax-exempt security is also created by the Inverse Floater
Trust, which is transferred to the fund, and is paid interest based
on the remaining cash flows of the Inverse Floater Trust, after
payment of interest on the other securities and various expenses of
the Inverse Floater Trust. An Inverse Floater Trust may be
collapsed without the consent of the fund due to certain
termination events such as bankruptcy, default or other credit
event.
The fund accounts for the transfer of bonds to the Inverse Floater
Trust as secured borrowings, with the securities transferred
remaining in the fund’s investments, and the Trust Certificates
reflected as fund liabilities in the Statement of Assets and
Liabilities.
The fund may invest in inverse floater securities on either a
non-recourse or recourse basis. These securities are typically
supported by a liquidity facility provided by a bank or other
financial institution (the “Liquidity Provider”) that allows the
holders of the Trust Certificates to tender their certificates in
exchange for payment from the Liquidity Provider of par plus
accrued interest on any business day prior to a termination event.
When the fund invests in inverse floater securities on a
non-recourse basis, the Liquidity Provider is required to make a
payment under the liquidity facility due to a termination event to
the holders of the Trust Certificates. When this occurs, the
Liquidity Provider typically liquidates all or a portion of the
municipal securities held in the Inverse Floater Trust. A
liquidation shortfall occurs if the Trust Certificates exceed the
proceeds of the sale of the bonds in the Inverse Floater Trust
(“Liquidation Shortfall”). When a fund invests in inverse floater
securities on a recourse basis, the fund typically enters into a
reimbursement agreement with the Liquidity Provider where the fund
is required to repay the Liquidity Provider the amount of any
Liquidation Shortfall. As a result, a fund investing in a recourse
inverse floater security bears the risk of loss with respect to any
Liquidation Shortfall.
32
The average amount of borrowings outstanding under the inverse
floater structure during the period ended March 31, 2022 was
approximately $62,487,257, with a related weighted average
annualized interest rate of .72%.
At March 31, 2022, accumulated net unrealized appreciation on
investments was $5,463,994, consisting of $9,702,616 gross
unrealized appreciation and $4,238,622 gross unrealized
depreciation.
At March 31, 2022, the cost of investments for federal income tax
purposes was substantially the same as the cost for financial
reporting purposes (see the Statement of Investments).
33
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32
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35
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OFFICERS AND DIRECTORS
BNY Mellon
Municipal Income, Inc.
240 Greenwich Street
New York, NY 10286
| |
|
|
|
|
Directors
|
|
Officers (continued)
|
|
|
Joseph S. DiMartino, Chairman
|
|
Assistant Treasurers (continued)
|
|
|
Francine J. Bovich
|
|
Robert Salviolo
|
|
|
J. Charles Cardona
|
|
Robert Svagna
|
|
|
Andrew J. Donohue
|
|
Chief Compliance Officer
|
|
|
Isabel P. Dunst
|
|
Joseph W. Connolly
|
|
|
Nathan Leventhal†
|
|
Portfolio Managers
|
|
|
Robin A. Melvin
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Daniel A. Rabasco
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Roslyn M. Watson
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Jeffrey B. Burger
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Benaree Pratt Wiley†
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Gordon J. Davis††
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Tamara Belinfanti††
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Adviser
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†
Elected by APS Holders
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BNY Mellon Investment Adviser, Inc.
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††
Advisory Board Member
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Custodian
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Officers
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The Bank of New York Mellon
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President
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Counsel
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David DiPetrillo
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Proskauer Rose LLP
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Chief Legal Officer
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Transfer Agent,
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Peter M. Sullivan
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Dividend Disbursing Agent
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Vice President and Secretary
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and Registrar
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James Bitetto
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Computershare Inc.
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Vice Presidents and Assistant Secretaries
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(Common Stock)
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Deirdre Cunnane
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Deutsche Bank Trust Company America
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Sarah S. Kelleher
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(Auction Preferred Stock)
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Jeff Prusnofsky
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Stock Exchange Listing
|
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Amanda Quinn
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NYSE American Symbol: DMF
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Natalya Zelensky
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Initial SEC Effective Date
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Treasurer
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10/21/88
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James Windels
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Auction Agent
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Vice President
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Deutsche Bank Trust Company America
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Daniel Goldstein
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(Auction Preferred Stock)
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Joseph Martella
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Assistant Treasurers
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Gavin C. Reilly
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The fund’s net asset value per share appears in the following
publications: Barron’s, Closed-End Bond Funds section under
the
heading “Municipal Bond Funds” every Monday; The Wall Street
Journal, Mutual Funds section under the heading
“Closed-End Funds” every Monday.
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|
Notice is hereby given in accordance with Section 23(c) of the Act
that the fund may purchase shares of its common stock in
the
open market when it can do so at prices below the then current net
asset value per share.
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BNY Mellon Municipal Income, Inc.
240 Greenwich Street
New York, NY 10286
Adviser
BNY Mellon Investment Adviser, Inc.
240 Greenwich Street
New York, NY 10286
Sub-adviser
Insight North America LLC
200 Park Avenue, 7th
Floor
New York, NY 10166
Custodian
The Bank of New York Mellon
240 Greenwich Street
New York, NY 10286
Transfer Agent &
Registrar (Common Stock)
Computershare Inc.
480 Washington Boulevard
Jersey City, NJ 07310
Dividend Disbursing Agent (Common Stock)
Computershare Inc.
P.O. Box 30170
College Station, TX 77842
For more information about the fund, visit
https://im.bnymellon.com/us/en/products/closed-end-funds.jsp. Here
you will find the fund’s most recently available quarterly fact
sheets and other information about the fund. The information posted
on the fund’s website is subject to change without
notice.
The fund files its complete schedule of portfolio holdings with the
SEC for the first and third quarters of each fiscal year on Form
N-PORT. The fund’s Forms N-PORT are available on the SEC’s website
at
www.sec.gov.
A description of the policies and procedures that the fund uses to
determine how to vote proxies relating to portfolio securities and
information regarding how the fund voted these proxies for the most
recent 12-month period ended June 30 is available at
www.im.bnymellon.com
and on the SEC’s website at www.sec.gov and without charge, upon
request, by calling 1-800-373-9387.
| |
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0424SA0322
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|
Not applicable.
|
Item 3. |
Audit Committee Financial Expert. |
Not applicable.
|
Item 4. |
Principal Accountant Fees and Services. |
Not applicable.
|
Item 5. |
Audit Committee of Listed Registrants. |
Not applicable.
(a)
Not
applicable.
|
Item 7. |
Disclosure of Proxy Voting Policies and Procedures for
Closed-End Management Investment Companies. |
Not applicable.
|
Item 8. |
Portfolio Managers of Closed-End Management Investment
Companies. |
Not applicable.
|
Item 9. |
Purchases of Equity Securities by Closed-End Management
Investment Companies and Affiliated Purchasers. |
Not applicable.
|
Item 10. |
Submission of Matters to a Vote of Security
Holders. |
There have been no material changes to the procedures applicable to
Item 10.
|
Item 11. |
Controls and Procedures. |
(a) The Registrant's
principal executive and principal financial officers have
concluded, based on their evaluation of the Registrant's disclosure
controls and procedures as of a date within 90 days of the filing
date of this report, that the Registrant's disclosure controls and
procedures are reasonably designed to ensure that information
required to be disclosed by the Registrant on Form N-CSR is
recorded, processed, summarized and reported within the required
time periods and that information required to be disclosed by the
Registrant in the reports that it files or submits on Form N-CSR is
accumulated and communicated to the Registrant's management,
including its principal executive and principal financial officers,
as appropriate to allow timely decisions regarding required
disclosure.
(b) There were no changes
to the Registrant's internal control over financial reporting that
occurred during the period covered by this report that have
materially affected, or are reasonably likely to materially affect,
the Registrant's internal control over financial reporting.
|
Item 12. |
Disclosure of Securities Lending Activities for Closed-End
Management Investment Companies. |
Not applicable.
(a)(1) Not applicable.
(a)(2) Certifications of principal executive and
principal financial officers as required by Rule 30a-2(a) under the
Investment Company Act of 1940.
(a)(3) Not applicable.
(b) Certification
of principal executive and principal financial officers as required
by Rule 30a-2(b) under the Investment Company Act of 1940.
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.
BNY
Mellon Municipal Income, Inc.
By: /s/ David DiPetrillo
David DiPetrillo
President (Principal Executive Officer)
Date: May 20, 2022
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, this Report has been signed
below by the following persons on behalf of the Registrant and in
the capacities and on the dates indicated.
By: /s/ David DiPetrillo
David DiPetrillo
President (Principal Executive Officer)
Date: May 20, 2022
By: /s/ James Windels
James Windels
Treasurer (Principal Financial Officer)
Date: May 20, 2022
EXHIBIT INDEX
(a)(2) Certifications of principal executive and principal
financial officers as required by Rule 30a-2(a) under the
Investment Company Act of 1940. (EX-99.CERT)
(b) Certification of
principal executive and principal financial officers as required by
Rule 30a-2(b) under the Investment Company Act of 1940.
(EX-99.906CERT)
BNY Mellon Municipal Inc... (AMEX:DMF)
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