- Quarterly Schedule of Portfolio Holdings of Registered Management Investment Company (N-Q)

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANY

Investment Company Act file number 811-07088

Invesco Van Kampen Massachusetts Value Municipal Income Trust

 

(Exact name of registrant as specified in charter)

1555 Peachtree Street, N.E., Atlanta, Georgia		30309
(Address of principal executive offices)		(Zip code)

Colin Meadows 1555 Peachtree Street, N.E., Atlanta, Georgia 30309

 

(Name and address of agent for service)

Registrant’s telephone number, including area code: [phone]

Date of fiscal year end: 2/28

Date of reporting period: 5/31/12

 

 

 

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Item 1. Schedule of Investments.

 

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Invesco Van Kampen Massachusetts Value Municipal Income Trust
Quarterly Schedule of Portfolio Holdings
May 31, 2012

invesco.com/us		VK-CE-MVMI-QTR-1 05/12		Invesco Advisers, Inc.

 

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Schedule of Investments
May 31, 2012
(Unaudited)

										Principal
		Interest				Maturity				Amount
		Rate				Date				(000)				Value
Municipal Obligations—162.21%
Massachusetts—140.20%
Berkshire Wind Power Cooperative Corp.; Series 2010 1, RB			5.25	%			07/01/30			$	350			$	388,874
Boston (City of) Water & Sewer Commission; Series 2009 A, Ref. General RB			5.00	%			11/01/26				1,000				1,170,820
Holyoke (City of) Gas & Electric Department; Series 2001 A, RB (a)(b)			5.00	%			12/01/12				1,000				1,023,620
Massachusetts (State of) Bay Transportation Authority;
Series 2006 B, Sr. Sales Tax RB			5.25	%			07/01/21				1,000				1,290,310
Series 2007 A-2, Sr. Sales Tax CAB RB (c)			0.00	%			07/01/21				715				538,288
Massachusetts (State of) Department of Transportation (Contract Assistance); Series 2010 B, Metropolitan Highway Systems RB			5.00	%			01/01/35				2,010				2,248,265
Massachusetts (State of) Department of Transportation;
Series 1993 A, Turnpike RB (b)			5.00	%			01/01/13				350				358,922
Series 1997 C, Sr. Turnpike Metropolitan Highway System CAB RB (INS-NATL) (c)(d)			0.00	%			01/01/22				1,550				1,153,711
Massachusetts (State of) Development Finance Agency (American Hingham); Series 1995, Water Treatment RB (e)			6.90	%			12/01/29				930				930,939
Massachusetts (State of) Development Finance Agency (Berklee College of Music); Series 2007 A, RB			5.00	%			10/01/32				350				376,824
Massachusetts (State of) Development Finance Agency (Berkshire Health System); Series 2012 G, RB			5.00	%			10/01/31				500				548,190
Massachusetts (State of) Development Finance Agency (Boston College);
Series 2008, RB			5.50	%			06/01/26				400				527,268
Series 2010 R-1, RB			5.00	%			07/01/31				350				404,117
Massachusetts (State of) Development Finance Agency (Broad Institute); Series 2011 A, RB			5.25	%			04/01/37				500				555,730
Massachusetts (State of) Development Finance Agency (Cape Cod Healthcare Obligation); Series 2004, RB (INS-AGC) (d)			5.13	%			11/15/35				500				539,455
Massachusetts (State of) Development Finance Agency (Caregroup); Series 1998 B-2, RB (INS-NATL) (d)			5.38	%			02/01/28				500				556,700
Massachusetts (State of) Development Finance Agency (Carleton-Willard Village); Series 2010, RB			5.63	%			12/01/30				700				757,295
Massachusetts (State of) Development Finance Agency (CLG Pharmacy & Allied Health); Series 2005 D, RB (INS-AGC) (d)			5.00	%			07/01/35				500				520,315
Massachusetts (State of) Development Finance Agency (Covenant Health Care Systems); Series 2002, RB			6.00	%			07/01/31				1,185				1,206,780
Massachusetts (State of) Development Finance Agency (Emerson College); Series 2010 A, RB			5.00	%			01/01/40				250				258,678
Massachusetts (State of) Development Finance Agency (Evergreen Center Inc.);
Series 2005, RB			5.00	%			01/01/24				250				250,890
Series 2005, RB			5.50	%			01/01/35				450				450,940
Massachusetts (State of) Development Finance Agency (Hampshire College); Series 2004, RB			5.70	%			10/01/34				1,000				1,029,800
Massachusetts (State of) Development Finance Agency (Harvard University); Series 2008 B, RB (f)			5.00	%			10/01/38				3,500				4,027,625
Massachusetts (State of) Development Finance Agency (Hillcrest Extended Care Services); Series 2001 A, VRD RB (LOC-Bank of America, N.A.) (g)(h)			0.27	%			10/01/26				465				465,000
Massachusetts (State of) Development Finance Agency (Lesley University); Series 2011 B-1, RB (INS-AGM) (d)			5.25	%			07/01/33				300				337,680
Massachusetts (State of) Development Finance Agency (Linden Ponds, Inc. Facility);
Series 2011 A-1, RB			6.25	%			11/15/46				213				154,233
Series 2011 A-2, RB			5.50	%			11/15/46				11				6,993
Series 2011 B, RB (c)			0.00	%			11/15/56				56				290
Massachusetts (State of) Development Finance Agency (Lowell General Hospital); Series 2010 C, RB			5.13	%			07/01/35				500				509,250
Massachusetts (State of) Development Finance Agency (Massachusetts Eye & Ear Infirmary); Series 2010 C, RB			5.38	%			07/01/35				500				528,485
Massachusetts (State of) Development Finance Agency (Massachusetts Institute of Technology);
Series 2002 K, RB (f)			5.50	%			07/01/32				2,500				3,553,025

See accompanying notes which are an integral part of this schedule.

Invesco Van Kampen Massachusetts Value Municipal Income Trust

 

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										Principal
		Interest				Maturity				Amount
		Rate				Date				(000)				Value
Massachusetts—(continued)
Series 2008 A, RB			5.00	%			07/01/38			$	750			$	858,030
Massachusetts (State of) Development Finance Agency (Mount Holyoke College); Series 2011 B, RB			5.00	%			07/01/41				500				550,755
Massachusetts (State of) Development Finance Agency (Northeastern University); Series 2009 Y-2, Ref. RB			5.50	%			10/01/24				750				888,945
Massachusetts (State of) Development Finance Agency (Overlook Communities); Series 2004 A, First Mortgage RB (a)(b)			6.25	%			07/01/12				600				615,006
Massachusetts (State of) Development Finance Agency (Partners Healthcare System); Series 2007 G, RB			5.00	%			07/01/47				600				633,408
Massachusetts (State of) Development Finance Agency (Sabis International Charter School); Series 2009 A, RB			8.00	%			04/15/39				250				304,960
Massachusetts (State of) Development Finance Agency (Springfield College); Series 2010, RB			5.63	%			10/15/40				500				525,485
Massachusetts (State of) Development Finance Agency (SRBC); Series 2002 A, RB (INS-NATL) (d)			5.13	%			08/01/28				1,000				1,000,660
Massachusetts (State of) Development Finance Agency (Sterling & Francine Clark Art); Series 2010, RB			5.00	%			07/01/40				500				558,170
Massachusetts (State of) Development Finance Agency (Suffolk University); Series 2010, RB			5.13	%			07/01/40				500				531,935
Massachusetts (State of) Development Finance Agency (The Groves in Lincoln); Series 2009 B-1, TEMPS-85 sm Senior Living Facility RB			7.25	%			06/01/16				250				212,898
Massachusetts (State of) Development Finance Agency (Tufts Medical Center); Series 2011 I, RB			6.75	%			01/01/36				500				579,925
Massachusetts (State of) Development Finance Agency (UMass Memorial); Series 2011 H, RB			5.50	%			07/01/31				500				546,080
Massachusetts (State of) Development Finance Agency (Wellesley College); Series 2012 J, RB			5.00	%			07/01/42				150				172,481
Massachusetts (State of) Development Finance Agency (Winchester Hospital); Series 2010, RB			5.25	%			07/01/38				700				733,047
Massachusetts (State of) Educational Financing Authority; Series 2011 J, RB (e)			5.63	%			07/01/28				350				376,779
Massachusetts (State of) Port Authority (Conrac); Series 2011 A, RB			5.13	%			07/01/41				250				273,928
Massachusetts (State of) Port Authority; Series 2010 A, RB			5.00	%			07/01/40				300				328,011
Massachusetts (State of) School Building Authority; Series 2005 A, Dedicated Sales Tax RB (INS-AGM) (d)(f)			5.00	%			08/15/30				3,500				3,873,205
Massachusetts (State of) Water Pollution Abatement (MWRA Program); Series 2002 A, RB			5.00	%			08/01/32				50				50,323
Massachusetts (State of) Water Resources Authority;
Series 2007 B, Ref. General RB (INS-AGM) (d)			5.25	%			08/01/31				500				659,170
Series 2011 B, General RB			5.00	%			08/01/28				200				238,290
Series 2011 C, Ref. General RB (f)			5.00	%			08/01/30				3,500				4,145,015
Massachusetts (State of);
Series 2004 A, Ref. Limited Tax GO Bonds (INS-AMBAC) (d)			5.50	%			08/01/30				1,500				2,033,610
Series 2004 C, Ref. Unlimited Tax GO Bonds (INS-NATL) (d)			5.50	%			12/01/17				455				565,879
Series 2005, Ref. Special Obligation Dedicated Tax RB (INS-NATL) (d)			5.50	%			01/01/23				1,000				1,241,140
Westford (Town of); Series 2003, Limited Tax GO Bonds (INS-AMBAC) (d)			5.25	%			06/01/19				1,975				2,065,850
															51,232,297
Puerto Rico—10.22%
Puerto Rico (Commonwealth of) Aqueduct & Sewer Authority; Series 2008 A, Sr. Lien RB			6.00	%			07/01/38				400				427,328
Puerto Rico (Commonwealth of) Electric Power Authority;
Series 2010 CCC, RB			5.25	%			07/01/27				200				214,828
Series 2010 XX, RB			5.25	%			07/01/40				500				514,400
Series 2010 XX, RB			5.75	%			07/01/36				300				329,748
Puerto Rico (Commonwealth of) Infrastructure Financing Authority; Series 2005 C, Ref. Special Tax RB (INS-AMBAC) (d)			5.50	%			07/01/27				200				222,536
Puerto Rico Sales Tax Financing Corp.;
First Subseries 2009 A, RB			5.75	%			08/01/37				300				333,303
First Subseries 2010 A, CAB RB (c)			0.00	%			08/01/34				2,000				594,820
Series 2011 C, RB (f)			5.00	%			08/01/40				375				400,699
Series 2011 C, RB (f)			5.25	%			08/01/40				630				698,317
															3,735,979

See accompanying notes which are an integral part of this schedule.

Invesco Van Kampen Massachusetts Value Municipal Income Trust

 

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										Principal
		Interest				Maturity				Amount
		Rate				Date				(000)				Value
Virgin Islands—8.94%
University of the Virgin Islands; Series 2004 A, Improvement RB (a)(b)			5.38	%			12/01/14			$	1,000			$	1,119,240
Virgin Islands (Government of) Public Finance Authority (Gross Receipts Taxes Loan Note); Series 1999 A, RB			6.38	%			10/01/19				915				918,065
Virgin Islands (Government of) Public Finance Authority (Matching Fund Loan Note — Diageo); Series 2009 A, Sub. RB			6.75	%			10/01/19				300				349,995
Virgin Islands (Government of) Public Finance Authority (Matching Fund Loan Note);
Series 2009 A, Sub. RB			6.00	%			10/01/39				320				349,155
Series 2010 A, Sr. Lien RB			5.00	%			10/01/29				500				529,475
															3,265,930
Guam—2.85%
Guam (Territory of) (Section 30); Series 2009 A, Limited Obligation RB			5.38	%			12/01/24				350				375,155
Guam (Territory of) Power Authority; Series 2010 A, RB			5.50	%			10/01/40				135				139,637
Guam (Territory of) Waterworks Authority; Series 2010, Water & Wastewater System RB			5.63	%			07/01/40				300				304,593
Guam (Territory of); Series 2011 A, Business Privilege Tax RB			5.25	%			01/01/36				200				222,510
															1,041,895
TOTAL INVESTMENTS (i) —162.21% (Cost $54,285,592)															59,276,101
FLOATING RATE NOTE OBLIGATIONS—(23.99)%
Notes with interest rates ranging from 0.24% to 0.28% at 05/31/12 and contractual maturities of collateral ranging from 08/01/30 to 08/01/40 (See Note 1D) (j)															(8,765,000	)
OTHER ASSETS LESS LIABILITIES—2.55%															931,794
VARIABLE RATE MUNI TERM PREFERRED SHARES—(40.77)%															(14,900,000	)
NET ASSETS APPLICABLE TO COMMON SHARES—100.00%														$	36,542,895

Investment Abbreviations:

AGC		—		Assured Guaranty Corp.
AGM		—		Assured Guaranty Municipal Corp.
AMBAC		—		American Municipal Bond Assurance Corp.
CAB		—		Capital Appreciation Bonds
GO		—		General Obligation
INS		—		Insurer
LOC		—		Letter of Credit
NATL		—		National Public Finance Guarantee Corp.
RB		—		Revenue Bonds
Ref.		—		Refunding
Sr.		—		Senior
Sub.		—		Subordinated
TEMPS		—		Tax-Exempt Mandatory Paydown Securities
VRD		—		Variable Rate Demand

Notes to Schedule of Investments:

(a)		Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put.
(b)		Advance refunded; secured by an escrow fund of U.S. Government obligations or other highly rated collateral.
(c)		Zero coupon bond issued at a discount.
(d)		Principal and/or interest payments are secured by the bond insurance company listed.
(e)		Security subject to the alternative minimum tax.
(f)		Underlying security related to Dealer Trusts entered into by the Trust. See Note 1D.
(g)		Demand security payable upon demand by the Trust at specified time intervals no greater than thirteen months. Interest rate is redetermined periodically. Rate shown is the rate in effect on May 31, 2012.
(h)		Principal and interest payments are fully enhanced by a letter of credit from the bank listed or a predecessor bank, branch or subsidiary.
(i)		This table provides a listing of those entities that have either issued, guaranteed, backed or otherwise enhanced the credit quality of more than 5% of the securities held in the portfolio. In instances where the entity has guaranteed, backed or otherwise enhanced the credit quality of a security, it is not primarily responsible for the issuer’s obligations but may be called upon to satisfy the issuer’s obligations.

Entities		Percentage
Assured Guaranty Municipal Corp.			8.2	%
National Public Finance Guarantee Corp.			7.6
American Municipal Bond Assurance Corp.			7.3

(j)		Floating rate note obligations related to securities held. The interest rates shown reflect the rates in effect at May 31, 2012. At May 31, 2012, the Trust’s investments with a value of $16,697,886 are held by Dealer Trusts and serve as collateral for the $8,765,000 in the floating rate note obligations outstanding at that date.

See accompanying notes which are an integral part of this schedule.

Invesco Van Kampen Massachusetts Value Municipal Income Trust

 

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Notes to Quarterly Schedule of Portfolio Holdings
May 31, 2012
(Unaudited)

NOTE 1 — Significant Accounting Policies

A.

Security Valuations — Securities, including restricted securities, are valued according to the following policy.

     Securities are fair valued using an evaluated quote provided by an independent pricing service approved by the Board of Trustees. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices and may reflect appropriate factors such as institution-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, individual trading characteristics and other market data. Securities with a demand feature exercisable within one to seven days are valued at par. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and principal payments.

     Securities for which market quotations either are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on transferability or disposition; trading in similar securities by the same issuer or comparable companies; relevant political, economic or issuer specific news; and other relevant factors under the circumstances.

     Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B.

Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.

     The Trust may periodically participate in litigation related to Trust investments. As such, the Trust may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

     Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Trust’s net asset value and, accordingly, they reduce the Trust’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Trust and the investment adviser.

C.

Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D.

Floating Rate Note Obligations — The Trust invests in inverse floating rate securities, such as Residual Interest Bonds (“RIBs”) or Tender Option Bonds (“TOBs”) for investment purposes and to enhance the yield of the Trust. Inverse floating rate investments tend to underperform the market for fixed rate bonds in a rising interest rate environment, but tend to outperform the market for fixed rate bonds when interest rates decline or remain relatively stable. Such transactions may be purchased in the secondary market without first owning the underlying bond or by the sale of fixed rate bonds by the Trust to special purpose trusts established by a broker dealer (“Dealer Trusts”) in exchange for cash and residual interests in the Dealer Trusts’ assets and cash flows, which are in the form of inverse floating rate securities. The Dealer Trusts finance the purchases of the fixed rate bonds by issuing floating rate notes to third parties and

Invesco Van Kampen Massachusetts Value Municipal Income Trust

 

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D.		Floating Rate Note Obligations — (continued)
		allowing the Trust to retain residual interest in the bonds. The floating rate notes issued by the Dealer Trusts have interest rates that reset weekly and the floating rate note holders have the option to tender their notes to the Dealer Trusts for redemption at par at each reset date. The residual interests held by the Trust (inverse floating rate investments) include the right of the Trust (1) to cause the holders of the floating rate notes to tender their notes at par at the next interest rate reset date, and (2) to transfer the municipal bond from the Dealer Trusts to the Trust, thereby collapsing the Dealer Trusts.

     TOBs are presently classified as private placement securities. Private placement securities are subject to restrictions on resale because they have not been registered under the Securities Act of 1933, as amended or are otherwise not readily marketable. As a result of the absence of a public trading market for these securities, they may be less liquid than publicly traded securities. Although these securities may be resold in privately negotiated transactions, the prices realized from these sales could be less than those originally paid by the Trust or less than what may be considered the fair value of such securities.

     The Trust accounts for the transfer of bonds to the Dealer Trusts as secured borrowings, with the securities transferred remaining in the Trust’s investment assets, and the related floating rate notes reflected as Trust liabilities under the caption Floating rate note obligations on the Statement of Assets and Liabilities. The Trust records the interest income from the fixed rate bonds under the caption Interest and records the expenses related to floating rate obligations and any administrative expenses of the Dealer Trusts a component of Interest, facilities and maintenance fees on the Statement of Operations.

     The Trust generally invests in inverse floating rate securities that include embedded leverage, thus exposing the Trust to greater risks and increased costs. The primary risks associated with inverse floating rate securities are varying degrees of liquidity and the changes in the value of such securities in response to changes in market rates of interest to a greater extent than the value of an equal principal amount of a fixed rate security having similar credit quality, redemption provisions and maturity which may cause the Trust’s net asset value to be more volatile than if it had not invested in inverse floating rate securities. In certain instances, the short-term floating rate interests created by the special purpose trust may not be able to be sold to third parties or, in the case of holders tendering (or putting) such interests for repayment of principal, may not be able to be remarketed to third parties. In such cases, the special purpose trust holding the long-term fixed rate bonds may be collapsed. In the case of RIBs or TOBs created by the contribution of long-term fixed income bonds by the Trust, the Trust will then be required to repay the principal amount of the tendered securities. During times of market volatility, illiquidity or uncertainty, the Trust could be required to sell other portfolio holdings at a disadvantageous time to raise cash to meet that obligation.

E.

Other Risks — The value of, payment of interest on, repayment of principal for and the ability to sell a municipal security may be affected by constitutional amendments, legislative enactments, executive orders, administrative regulations, voter initiatives and the economics of the regions in which the issuers are located.

     Since many municipal securities are issued to finance similar projects, especially those relating to education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal securities market and a Trust’s investments in municipal securities.

     There is some risk that a portion or all of the interest received from certain tax-free municipal securities could become taxable as a result of determinations by the Internal Revenue Service.

NOTE 2 — Additional Valuation Information

Generally Accepted Accounting Principles (“GAAP”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 —		Prices are determined using quoted prices in an active market for identical assets.
Level 2 —		Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Invesco Van Kampen Massachusetts Value Municipal Income Trust

 

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Level 3 —

Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Trust’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

     The following is a summary of the tiered valuation input levels, as of May 31, 2012. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

		Level 1				Level 2				Level 3				Total
Municipal Obligations		$	—			$	59,276,101			$	—			$	59,276,101

NOTE 3 — Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Trust during the three months ended May 31, 2012 was $711,952 and $1,010,000, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities		$	5,263,071
Aggregate unrealized (depreciation) of investment securities			(213,546	)
Net unrealized appreciation of investment securities		$	5,049,525
Cost of investments for tax purposes is $54,226,576.

NOTE 4 — Significant Event

The Board of Trustees of the Trust (the “Board”) approved the redomestication of the Trust, a Massachusetts business trust, into a Delaware statutory trust pursuant to an Agreement and Plan of Redomestication (the “Redomestication”). The Board also approved an Agreement and Plan of Merger pursuant to which the Trust would merge with and into Invesco Van Kampen Municipal Trust (the “Acquiring Trust”) in accordance with the Delaware Statutory Trust Act (the “Merger”). As a result of the Merger, all of the assets and liabilities of the Trust will become assets and liabilities of the Acquiring Trust and the Trust’s shareholders will become shareholders of the Acquiring Trust. The Redomestication and the Merger are subject to shareholder approval.

     In addition, the Board also approved a plan to redeem all of the outstanding auction rate preferred shares at their respective liquidation preferences. These redemptions are anticipated to be funded with proceeds received from the issuance of Variable Rate Muni Term Preferred Shares (“VMTPS”) and Tender Option Bonds (“TOBs”). VMTPS are a variable rate form of preferred stock with a mandatory redemption date. These redemptions and this issuance of VMTPS are targeted to occur in the first half of 2012.

Invesco Van Kampen Massachusetts Value Municipal Income Trust

 

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Item 2. Controls and Procedures.

	(a)		As of June 12, 2012, an evaluation was performed under the supervision and with the participation of the officers of the Registrant, including the Principal Executive Officer (“PEO”) and Principal Financial Officer (“PFO”), to assess the effectiveness of the Registrant’s disclosure controls and procedures, as that term is defined in Rule 30a-3(c) under the Investment Company Act of 1940 (“Act”), as amended. Based on that evaluation, the Registrant’s officers, including the PEO and PFO, concluded that, as of June 12, 2012, the Registrant’s disclosure controls and procedures were reasonably designed so as to ensure: (1) that information required to be disclosed by the Registrant on Form N-Q is recorded, processed, summarized and reported within the time periods specified by the rules and forms of the Securities and Exchange Commission; and (2) that material information relating to the Registrant is made known to the PEO and PFO as appropriate to allow timely decisions regarding required disclosure.
	(b)		There have been no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the Registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 3. Exhibits.

Certifications of PEO and PFO as required by Rule 30a-2(a) under the Investment Company Act of 1940.

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant: Invesco Van Kampen Massachusetts Value Municipal Income Trust

	By:	/s/ Colin Meadows
		Colin Meadows
		Principal Executive Officer
	Date: July 30, 2012

Pursuant to the requirements of the Securities and Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

	By:	/s/ Colin Meadows
		Colin Meadows
		Principal Executive Officer
	Date: July 30, 2012

	By:	/s/ Sheri Morris
		Sheri Morris
		Principal Financial Officer
	Date: July 30, 2012

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EXHIBIT INDEX

Certifications of Principal Executive Officer (“PEO”) and Principal Financial Officer (“PFO”) as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended.