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: 811-06434
Morgan Stanley Insured Municipal Trust
(Exact name of registrant as specified in charter)
522 Fifth Avenue, New York, New York 10036
(Address of principal executive offices) (Zip code)
Ronald E. Robison
522 Fifth Avenue, New York, New York 10036
(Name and address of agent for service)
Registrant's telephone number, including area code: 212-296-6990
Date of fiscal year end: October 31, 2008
Date of reporting period: January 31, 2008
ITEM 1. SCHEDULE OF INVESTMENTS.
The Trust's schedule of investments as of the close of the reporting period
prepared pursuant to Rule 12-12 of Regulation S-X is as follows:
MORGAN STANLEY INSURED MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS JANUARY 31, 2008 (UNAUDITED)
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
--------- ------ -------- ------------
TAX-EXEMPT MUNICIPAL BONDS (158.1%)
ALASKA (3.6%)
$10,000 North Slope Borough, Alaska, Ser 2000 B (MBIA Insd) 0.00% 06/30/10 $ 9,394,800
-------------
ARIZONA (1.2%)
2,000 Arizona Board of Regents, Arizona State University Ser 2004
COPs (AMBAC Insd) 5.00 09/01/30 2,038,660
1,000 Phoenix Civic Improvement Corporation, Arizona, Jr Lien
Wastewater Ser 2004 (MBIA Insd) 5.00 07/01/27 1,031,220
-------------
3,069,880
-------------
CALIFORNIA (21.0%)
16,000 Anaheim Public Financing Authority, California, Anaheim
Electric Ser 2007-A (MBIA Insd)* 4.50 10/01/37 15,231,760
2,500 California, Economic Recovery Ser 2004 (MBIA Insd) 5.00 07/01/15 2,753,775
6,000 California, Ser 2007 (MBIA Insd) 4.25 08/01/33 5,496,960
4,000 Eastern Municipal Water District, Water & Sewer Refg Ser
2006 A COPs (MBIA Insd) 5.00 07/01/32 4,057,480
6,000 Golden State Tobacco Securitization Corporation, California,
Enhanced Asset Backed Ser 2005 A (FGIC Insd) 5.00 06/01/38 5,948,640
2,000 Kern County Board of Education, California, Refg 2006 Ser A
COPs (MBIA Insd) 5.00 06/01/31 2,030,500
3,000 Los Angeles, California, Ser 2004 A (MBIA Insd) 5.00 09/01/24 3,155,880
2,000 Sacramento County Sanitation District Financing Authority,
California, Sacramento Regional Ser 2006 (FGIC Insd) 5.00 12/01/36 2,068,020
5,000 San Diego County Water Authority, California, Ser 2004 A
COPs (FSA Insd) 5.00 05/01/29 5,138,850
2,000 San Francisco City & County, City Buildings Ser 2007 A COPs
(FGIC Insd) 4.50 09/01/37 1,833,340
1,000 University of California, Limited Projects Ser 2005 B (FSA Insd) 5.00 05/15/30 1,036,760
3,120 University of California, Ser 2007 J (FSA Insd)* 4.50 05/15/31 3,082,888
2,880 University of California, Ser 2007-J (FSA Insd) * 4.50 05/15/35 2,845,742
-------------
54,680,595
-------------
COLORADO (5.2%)
2,000 Arkansas River Power Authority, Colorado, Power Ser 2006
(XLCA Insd) 5.25 10/01/40 2,026,540
5,000 Denver City & County, Colorado, Airport Refg Ser 2000 A
(AMT) (AMBAC Insd) 6.00 11/15/18 5,218,750
6,500 Denver Convention Center Hotel Authority, Refg Ser 2006
(XLCA Insd) 5.00 12/01/35 6,360,900
-------------
13,606,190
-------------
DISTRICT OF COLUMBIA (1.5%)
4,000 District of Columbia Ballpark, Ser 2006 B-1 (FGIC Insd) 5.00 02/01/31 4,009,160
-------------
FLORIDA (5.7%)
2,155 Miami Dade County, Florida, Miami Int'l Airport Refg Ser
2003 B (AMT) (MBIA Insd) 5.25 10/01/18 2,266,478
2,270 Miami Dade County, Florida, Miami Int'l Airport Refg Ser
2003 B (AMT) (MBIA Insd) 5.25 10/01/19 2,370,902
10,000 Tamp Bay Water Authority, Ser 2001 B (FGIC Insd) 5.00 10/01/31 10,144,700
-------------
14,782,080
-------------
GEORGIA (3.8%)
5,000 Atlanta, Airport Ser 2004 C (FSA Insd) 5.00 01/01/33 5,102,900
2,000 Atlanta, Water & Wastewater, Ser 1999 A (FGIC Insd) 5.00 11/01/29 2,018,520
900 Fulton County Development Authority, Georgia, Morehouse
College Ser 2000 (AMBAC Insd) 5.25 10/01/39 1,004,265
1,700 Fulton County Development Authority, Georgia, Morehouse
College Ser 2000 (AMBAC Insd) 6.25 12/01/21 1,879,571
-------------
10,005,256
-------------
HAWAII (8.1%)
5,000 Hawaii, Airports Refg Ser 2001 (AMT) (FGIC Insd) 5.25 07/01/21 5,114,950
5,000 Honolulu City & County, Hawaii, Ser 2003 A (MBIA Insd)* 5.52 03/01/25 5,327,350
5,000 Honolulu City & County, Hawaii, Ser 2003 A (MBIA Insd)* 5.25 03/01/26 5,289,475
5,000 Honolulu City & County, Hawaii, Wastewater Ser 2001 (AMBAC Insd) 5.13 07/01/11+ 5,433,150
-------------
21,164,925
-------------
ILLINOIS (17.4%)
3,000 Chicago, Illinios, O'Hare Int'l Airport, Ser 2005 A (MBIA Insd) 5.25 01/01/25 3,098,880
2,000 Chicago, Illinois, O' Hare Int'l Airport Third Lien Ser 2003
B-2 (AMT) (FSA Insd) 5.75 01/01/23 2,143,520
2,000 Chicago, Illinois, Refg 2001 A (MBIA Insd) 0.00 01/01/21++ 1,898,320
2,000 Chicago, Illinois, Refg 2001 A (MBIA Insd) 0.00 01/01/22++ 1,887,740
8,000 Chicago, Illinois, Refg Ser 1992 (AMBAC Insd) 6.25 01/01/11 8,483,760
10,000 Illinois, Ser 2001 (MBIA Insd) 5.375 01/01/15 11,386,100
10,000 Illinois, Ser 2001 (MBIA Insd) 5.375 04/01/16 11,451,300
4,000 Regional Transportation Authority, Illinois, Refg Ser 1999
(FSA Insd) 5.75 06/01/21 4,773,160
-------------
45,122,780
-------------
INDIANA (1.1%)
3,000 Indiana Health Facilities Financing Authority, Community
Health Ser 2005 A (AMBAC Insd) 5.00 05/01/35 2,979,900
-------------
IOWA (2.7%)
3,600 Vision Iowa Ser 2001 (MBIA Insd) 5.50 02/15/19 4,176,792
2,500 Vision Iowa Ser 2001 (MBIA Insd) 5.50 02/15/20 2,898,050
-------------
7,074,842
-------------
KENTUCKY (5.6%)
10,000 Louisville & Jefferson County Metropolitan Sewer District,
Kentucky, Ser 1999 A (FGIC Insd) 5.75 05/15/33 10,446,500
3,800 Louisville Board of Water Works, Kentucky, Water Ser 2000
(FSA Insd) 5.50 11/15/25 3,995,928
-------------
14,442,428
-------------
LOUISIANA (0.8%)
2,000 Louisiana Public Facilities Authority, Baton Rouge General
Medical Center-FHA Insured Mtge Ser 2004 (MBIA Insd) 5.25 07/01/33 2,050,780
-------------
MARYLAND (1.0%)
2,500 Maryland Economic Development Corporation, Maryland Aviation
Administration Ser 2003 (AMT) (FSA Insd) 5.375 06/01/22 2,624,050
-------------
MICHIGAN (2.1%)
5,000 Detroit, Michigan, Sewage Disposal Ser 2001 A (FGIC Insd)) 5.125 07/01/11+ 5,422,900
-------------
MINNESOTA (4.9%)
3,000 Brainerd Independent School District #181, Minnesota, Ser
2002 A (FGIC Insd) 5.375 02/01/18 3,265,560
5,000 Minneapolis - St Paul Metropolitan Airports Commission,
Minnesota, Ser 2001 C (FGIC Insd) 5.25 01/01/11+ 5,395,350
4,000 Minneapolis, Minnesota, Fairview Health 2005 Ser D (AMBAC Insd) 5.00 11/15/34 4,000,960
-------------
12,661,870
-------------
MISSOURI (0.8%)
2,000 Missouri Joint Municipal Electric Utility Commission Plum Point
Ser 2006 (MBIA Insd) 5.00 01/01/25 2,035,900
-------------
MONTANA (0.7%)
1,750 Montana Facility Finance Authority, Benefis Health System
(AGC Insd) 5.00 01/01/37 1,788,448
-------------
NEVADA (2.8%)
4,000 Clark County, Nevada, Transportation Impr Ltd Tax Ser 06/01/92
B (AMBAC Insd) 6.50 06/01/17 4,925,960
5,000 Nevada Department of Business & Industry, Las Vegas Monorail
1st Tier Ser 2000 (AMBAC Insd) 0.000 01/01/21 2,308,100
-------------
7,234,060
-------------
NEW JERSEY (3.9%)
2,770 New Jersey Housing Mortgage Finance Authority, Home Buyer Ser
2000 CC (AMT) (MBIA Insd) 5.878 10/01/31 2,839,444
2,000 New Jersey Transportation Trust Fund Authority, Ser 2005 C
(FGIC Insd) 5.25 06/15/20 2,167,460
5,000 New Jersey Turnpike Authority, Ser 2003 A (AMBAC Insd) 5.00 01/01/30 5,101,950
-------------
10,108,854
-------------
NEW MEXICO (0.6%)
1,500 Albuquerque, New Mexico, Gross Receipts Lodgers' Tax Refg Ser
2004 A (FSA Insd) 5.00 07/01/37 1,545,975
-------------
NEW YORK (16.6%)
12,000 Hudson Yards Infrastructure Corporation, 2007 Ser A (MBIA Insd) 4.50 02/15/47 11,459,040
1,000 Long Island Power Authority, New York, Ser 2006 A (XLCA Insd) 5.00 12/01/26 1,016,010
6,805 Metropolitan Transportation Authority, New York, State Service
Contract Refg Ser 2002 B (MBIA Insd) 5.50 07/01/20 7,411,053
10,000 Metropolitan Transportation Authority, New York, Transportation
Refg Ser 2002 A (AMBAC Insd) 5.50 11/15/17 11,080,600
2,000 Metropolitan Transportation Authority, New York, Transportation
Refg Ser 2002 A (AMBAC Insd) 5.00 11/15/25 2,052,040
1,000 New York City Industrial Development Agency, Queens Baseball
Stadium Ser 2006 (AMBAC Insd) 5.00 01/01/31 1,009,630
2,000 New York City Industrial Development Agency, Yankee Stadium Ser
2006 (FGIC Insd) 5.00 03/01/46 2,000,600
2,000 New York State Dormitory Authority, Montefiore Hospital - FHA
Insured Mtge Ser 2004 (FGIC Insd) 5.00 08/01/29 2,058,880
5,000 New York State Energy Research & Development Authority, Brooklyn
Union Gas Co 1996 Ser (MBIA Insd)# 5.50 01/01/21 5,008,550
-------------
43,096,403
-------------
NORTH CAROLINA (1.6%)
2,000 University of North Carolina at Wilmington, Student Housing Ser
2005 COPs (FGIC Insd) 5.00 06/01/36 2,023,740
2,030 University of North Carolina Ser 2000 (AMBAC Insd) 5.25 10/01/10+ 2,202,246
-------------
4,225,986
-------------
OHIO (2.9%)
1,965 Hamilton County, Ohio, Sales Tax 2000 (AMBAC Insd) 5.25 12/01/32 2,032,517
5,000 Hamilton County, Ohio, Sales Tax 2000 (AMBAC Insd) 5.25 12/01/10+ 5,396,200
-------------
7,428,717
-------------
OREGON (0.7%)
1,685 Oregon Department of Administrative Services, COPs Ser 2005 B
(FGIC Insd) 5.00 11/01/24 1,750,108
-------------
PENNSYLVANIA (3.7%)
1,500 Delaware County Industrial Development Authority, Pennsylvania,
Aqua Inc Ser A 2005 (AMT) (FGIC Insd) 5.00 11/01/37 1,488,405
4,000 Pennsylvania Turnpike Commission, Ser A 2004 (AMBAC Insd) 5.00 12/01/34 4,085,600
4,000 Pennsylvania Turnpike Commission, Ser A 2004 (AMBAC Insd) 5.00 12/01/26 4,116,000
-------------
9,690,005
-------------
SOUTH CAROLINA (7.1%)
5,000 Grand Strand Water & Sewer Authority, South Carolina, Refg Ser
2001 (FSA Insd) 5.00 06/01/31 5,185,950
1,000 Medical University Hospital Authority, South Carolina, FHA
Insured Mtge Ser 2004 A (MBIA Insd) 5.25 02/15/25 1,041,770
2,000 South Carolina Public Service Authority, Santee Cooper Ser
2003 A (AMBAC Insd) 5.00 01/01/27 2,051,380
9,325 South Carolina Public Service Authority, Santee Cooper 2002 B
(FSA Insd) 5.375 01/01/17 10,144,574
-------------
18,423,674
-------------
TEXAS (18.8%)
10,000 Austin, Texas, Water & Wastewater Refg Ser 2001 A & B (FSA Insd)* 5.125 05/15/27 10,123,075
2,000 Austin, Texas, Water & Wastewater Ser 2004 A (AMBAC Insd) 5.00 11/15/27 2,065,480
15,000 Houston, Combined Utility First Lien Refg 2004 Ser A (FGIC Insd) 5.25 05/15/23 15,772,650
9,970 Lower Colorado River Authority, Refg Ser 1999 A (FSA Insd) 5.875 05/15/16 10,499,606
30 Lower Colorado River Authority, Refg Ser 2001 A (FSA Insd) 5.875 05/15/16 31,732
2,000 San Antonio, Water & Refg Ser 2002 A (FSA Insd) 5.50 05/15/32 2,182,460
2,500 San Antonio, Water & Refg Ser 2002 A (FSA Insd) 5.50 05/15/20 2,719,700
2,000 San Antonio, Water & Refg Ser 2002 A (FSA Insd) 5.00 05/15/32 2,045,140
3,000 Wichita Falls, Texas, Water & Sewer Ser 2001 (AMBAC Insd) 5.375 08/01/11+ 3,290,280
-------------
48,730,123
-------------
UTAH (1.2%)
3,000 Utah Board of Regents, University of Utah - Huntsman Cancer
Institute Refg Ser 2000 A (MBIA Insd) 5.50 04/01/10+ 3,229,230
-------------
VIRGINIA (1.3%)
3,000 Alexandria Industrial Development Authority, Institute for
Defense Analysis Ser 2000 A (AMBAC Insd) 5.90 10/01/10+ 3,304,680
-------------
WASHINGTON (9.7%)
3,000 Cowitz County, Public Utility District # 1, Production Ser 2006
(MBIA Insd) 5.00 09/01/31 3,015,480
5,000 King County, Sewer Refg 2001 (FGIC Insd) 5.00 01/01/31 5,072,550
4,010 Port of Seattle, Passenger Facility Ser 1998 A (MBIA Insd)* 5.00 12/01/23 4,056,560
2,500 Port of Seattle, Ser 2001 B (AMT) (MBIA Insd) 5.625 02/01/24 2,572,650
10,000 Seattle, Washington, Light & Power Refg Rev 2001 (FSA Insd) 5.13 03/01/26 10,423,200
-------------
25,140,440
-------------
TOTAL TAX-EXEMPT MUNICIPAL BONDS (Cost $402,427,992) 410,825,039
-------------
NUMBER OF
SHARES
(000)
------------
SHORT-TERM INVESTMENT (a) (3.1%)
INVESTMENT COMPANY
8,119 Morgan Stanley Institutional Liquidity Tax-Exempt Portfolio -
Institutional Class (Cost $8,119,293) 8,119,293
-------------
TOTAL INVESTMENTS (Cost $410,547,285) 418,944,332
-------------
PRINCIPAL
AMOUNT IN
THOUSANDS
---------
FLOATING RATE NOTE OBLIGATIONS RELATED TO SECURITIES HELD
(-12.8%)
(33,260) Notes with interest rates ranging from 2.11% to 3.78% at January
31, 2008 and contractual maturities of collateral ranging from
12/01/23 to 10/01/37 +++ (b) (Cost $(33,260,000)) (33,260,000)
-------------
TOTAL NET INVESTMENTS (Cost $377,287,285) (c) (d) 148.4 385,684,332
OTHER ASSETS IN EXCESS OF LIABILITES 1.6 4,230,569
PREFERRED SHARES OF BENEFICIAL INTEREST (50.0) (130,000,000)
------ -------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 100.0% 259,914,901
====== =============
Note: The categories of investments are shown as a percentage of net assets
applicable to common shareholders.
AMT Alternative Minimum Tax.
COPs Certificates of Participation.
FHA Federal Housing Authority
# A portion of this security has been physically segregated in connection
with open futures contracts in the amount of $301,760.
+ Prerefunded to call date shown.
++ Security is a "step-up" bond where the coupon increases on predetermined
future date.
+++ Floating rate note obligations related to securities held. The interest
rate shown reflects the rate in effect at January 31, 2008.
* Underlying securities related to inverse floaters entered into by the
Trust.
(a) The Trust invests in Morgan Stanley Institutional Liquidity Tax-Exempt
Portfolio - Institutional Class, an open-end management investment company
managed by the Investment Adviser. Investment advisory fees paid by the
Trust are reduced by an amount equal to the advisory and administrative
services fees paid by Morgan Stanley Institutional Liquidity Tax-Exempt
Portfolio - Institutional Class with respect to assets invested by the
Trust in Morgan Stanley Institutional Liquidity Tax-Exempt Portfolio -
Institutional Class. For the period ended January 31, 2008, advisory fees
paid were reduced by $2,016 relating to the Trust's investment in Morgan
Stanley Institutional Liquidity Tax-Exempt Portfolio - Institutional Class.
(b) Floating Rate Note Obligations Related to Securities Held - The Trust
enters into transactions in which it transfers to Dealer Trusts ("Dealer
Trusts"), fixed rate bonds in exchange for cash and residual interests in
the Dealer Trusts' assets and cash flows, which are in the form of inverse
floating rate investments. The Dealer Trusts fund the purchases of the
fixed rate bonds by issuing floating rate notes to third parties and
allowing the Trust to retain residual interest in the bonds. The Trust
enters into shortfall agreements with the Dealer Trusts which commit the
Trust to pay the Dealer Trusts, in certain circumstances, the difference
between the liquidation value of the fixed rate bonds held by the Dealer
Trusts and the liquidation value of the floating rate notes held by third
parties, as well as any shortfalls in interest cash flows. The residual
interests held by the Trust (inverse floating rate investments) include the
right of the Trust (1) to cause the holders of the floating rate notes to
tender their notes at par at the next interest rate reset date, and (2) to
transfer the municipal bond from the Dealer Trusts to the Trust, thereby
collapsing the Dealer Trusts. The Trust accounts for the transfer of bonds
to the Dealer Trusts as secured borrowings, with the securities transferred
remaining in the Trust's investment assets, and the related floating rate
notes reflected as Trust liabilities. The notes issued by the Dealer Trusts
have interest rates that reset weekly and the floating rate note holders
have the option to tender their notes to the Dealer Trusts for redemption
at par at each reset date. At January 31, 2008, Trust investments with a
value of $45,956,850 are held by the Dealer Trusts and serve as collateral
for the $33,260,000 in floating rate note obligations outstanding at that
date. Contractual maturities of the floating rate note obligations and
interest rates in effect at January 31, 2008 are presented in the
"Portfolio of Investments".
(c) Securities have been designated as collateral in an amount equal to
$120,326,698 in connection with open futures contracts.
(d) The aggregate cost for federal income tax purposes approximates the
aggregate cost for book purposes.
Bond insurance:
AGC Assured Guaranty Corporation.
AMBAC AMBAC Assurance Corporation.
FGIC Financial Guaranty Insurance Company.
FSA Financial Security Assurance Inc.
MBIA Municipal Bond Investors Assurance Corporation.
XLCA XL Capital Assurance Inc.
FUTURES CONTRACTS OPEN AT JANUARY 31, 2008:
UNREALIZED
NUMBER OF LONG/ DESCRIPTION, DELIVERY UNDERLYING FACE APPRECIATION/
CONTRACTS SHORT MONTH AND YEAR AMOUNT AT VALUE (DEPRECIATION)
--------- ----- ---------------------------- --------------- --------------
545 Long U.S. Treasury Swaps 10 Year,
March 2008 62,036,331 1,602,396
39 Long U.S. Treasury Notes 5 Year,
March 2008 $ 4,407,000 $ (5,275)
2 Long U.S. Treasury Notes 5 Year,
March 2008 225,156 (361)
57 Short U.S. Treasury Notes 2 Year,
March 2008 (12,153,469) (96,718)
263 Short U.S. Treasury Notes 10 Year,
March 2008 (30,697,031) (280,231)
110 Short U.S. Treasury Bonds 20 Year,
March 2008 (13,124,375) (40,931)
-----------
NET UNREALIZED APPRECIATION................... $ 1,178,880
===========
ITEM 2. CONTROLS AND PROCEDURES.
(a) The Trust's principal executive officer and principal financial officer have
concluded that the Trust's disclosure controls and procedures are sufficient to
ensure that information required to be disclosed by the Trust's in this Form N-Q
was recorded, processed, summarized and reported within the time periods
specified in the Securities and Exchange Commission's rules and forms, based
upon such officers' evaluation of these controls and procedures as of a date
within 90 days of the filing date of the report.
(b) There were no changes in the Trust's internal control over financial
reporting that occurred during the registrant's fiscal quarter that has
materially affected, or is reasonably likely to materially affect, the Trust's
internal control over financial reporting.
ITEM 3. EXHIBITS.
(a) A separate certification for each principal executive officer and principal
financial officer of the registrant are attached hereto.
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Morgan Stanley Insured Municipal Trust
/s/ Ronald E. Robison
Ronald E. Robison
Principal Executive Officer
March 20, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed by the following
persons on behalf of the registrant and in the capacities and on the dates
indicated.
/s/ Ronald E. Robison
Ronald E. Robison
Principal Executive Officer
March 20, 2008
/s/ Francis Smith
Francis Smith
Principal Financial Officer
March 20, 2008
3