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)
1221 Avenue of the Americas, New York, New York 10020
(Address of principal executive offices) (Zip code)
Ronald E. Robison
1221 Avenue of the Americas, New York, New York 10020
(Name and address of agent for service)
Registrant's telephone number, including area code: 212-762-4000
Date of fiscal year end: October 31, 2006
Date of reporting period: July 31, 2006
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 July 31, 2006 (unaudited)
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
--------- ---- ---- -----
TAX-EXEMPT MUNICIPAL BONDS (142.5%)
General Obligation (24.2%)
$10,000 North Slope Borough, Alaska, Ser 2000 B (MBIA) 0.00% 06/30/10 $8,540,100
3,000 Los Angeles, California, Ser 2004 A (MBIA) 5.00 09/01/24 3,124,320
3,000 Florida Board of Education, Capital Outlay Refg Ser 2002 C (MBIA) 5.00 06/01/20 3,127,530
Honolulu City & County, Hawaii,
2,500 ROLS RR II R 237-2 (MBIA) 5.215+++ 03/01/25 2,804,950
2,500 ROLS RR II R 237-3 (MBIA) 5.215+++ 03/01/26 2,748,325
Chicago, Illinois,
8,000 Refg Ser 1992 (Ambac) 6.25 01/01/11 8,634,480
2,000 Refg 2001 A (MBIA) 0.00++ 01/01/21 1,730,480
2,000 Refg 2001 A (MBIA) 0.00++ 01/01/22 1,727,380
Illinois,
10,000 Ser 2001 (MBIA) 5.375 04/01/15 10,952,100
10,000 Ser 2001 (MBIA) 5.375 04/01/16 10,948,400
3,000 Brainerd Independent School District #181, Minnesota, 5.375 02/01/18 3,217,290
Ser 2002 A (FGIC)
1,000 Omaha Convention Hotel Corp, Nebraska, Ser 2002 A (Ambac) 5.50 04/01/18 1,072,970
4,000 Clark County, Nevada, Transportation Impr Ltd Tax 6.50 06/01/17 4,769,600
Ser 06/01/92 B (Ambac)
1,880 King County, Washington, Refg 1998 Ser B (MBIA) 5.25 01/01/34 1,925,834
-------- -------------
62,880 65,323,759
-------- -------------
Educational Facilities Revenue (5.3%)
2,000 Arizona Board of Regents, Arizona State University Ser 2004 5.00 09/01/30 2,055,460
COPs (Ambac)
University of California,
1,000 Limited Projects Ser 2005 B (FSA) 5.00 05/15/30 1,033,480
2,000 Multi Purpose Ser Q (FSA) 5.00 09/01/31 2,061,840
1,735 Orange County Educational Facilities Authority, Florida, Rollins 5.125 12/01/28 1,803,637
College Ser 2005 (Ambac)
Fulton County Development Authority, Georgia,
900 Morehouse College Ser 2000 (Ambac) 6.25 12/01/21 989,694
1,700 Morehouse College Ser 2000 (Ambac) 5.875 12/01/30 1,839,179
2,500 University of North Carolina, Ser 2000 (Ambac) 5.25 10/01/20 2,640,300
2,000 University of North Carolina at Wilmington, Student Housing 5.00 06/01/36 2,046,480
Ser 2005 COPs (FGIC)
-------- -------------
13,835 14,470,070
-------- -------------
Electric Revenue (14.1%)
2,000 Arkansas River Power Authority, Colorado, Power Ser 2006 (XLCA) 5.25 10/01/40 2,095,380
2,000 Indiana Municipal Power Agency, Power Supply 2004 Ser A (FGIC) 5.00 01/01/32 2,053,120
1,000 Long Island Power Authority, New York, Ser 2006 A (XLCA) 5.00 12/01/26 1,038,110
South Carolina Public Service Authority,
9,325 Ser 2002 B (FSA) 5.375 01/01/17 9,927,209
2,000 Ser 2003 A (Ambac) 5.00 01/01/27 2,060,600
10,000 Lower Colorado River Authority, Texas, Refg Ser 1999 A (FSA) 5.875 05/15/16 10,625,400
10,000 Seattle, Washington, Light & Power Refg Rev 2001 (FSA) 5.125 03/01/26 10,250,900
-------- -------------
36,325 38,050,719
-------- -------------
Hospital Revenue (4.6%)
3,000 Indiana Health Facilities Financing Authority, Community Health 5.00 05/01/35 3,079,980
Ser 2005 A (Ambac)
2,000 Louisiana Public Facilities Authority, Baton Rouge General Medical 5.25 07/01/33 2,087,380
Center-FHA Insured Mtge Ser 2004 (MBIA)
4,000 Minneapolis, Minnesota, Fairview Health 2005 Ser D (Ambac) 5.00 11/15/34 4,121,400
2,000 New York State Dormitory Authority, Montefiore Hospital - FHA 5.00 08/01/29 2,063,580
Insured Mtge Ser 2004 (FGIC)
1,000 Medical University Hospital Authority, South Carolina, FHA Insured 5.25 02/15/25 1,053,210
Mtge Refg Ser 2004 A (MBIA)
-------- -------------
12,000 12,405,550
-------- -------------
Industrial Development/Pollution Control Revenue (4.3%)
5,000 Humboldt County, Nevada, Sierra Pacific Power Co Refg Ser 1987 6.55 10/01/13 5,106,750
(Ambac)
5,000 New York State Energy Research & Development Authority, 5.50 01/01/21 5,106,500
Brooklyn Union Gas Co 1996 Ser (MBIA)**
1,500 Delaware County Industrial Development Authority, Pennsylvania, 5.00 11/01/37 1,527,360
Aqua Inc Ser A 2005 (AMT) (FGIC)
-------- -------------
11,500 11,740,610
-------- -------------
Mortgage Revenue - Multi-Family (1.4%)
3,695 New Jersey Housing Mortgage Finance Authority, Home Buyer 5.875 10/01/31 3,708,154
Ser 2000 CC (AMT) (MBIA)
-------- -------------
Public Facilities Revenue (5.0%)
2,000 Kern County Board of Education, California, Refg Ser 2006 A 5.00 06/01/31 2,061,780
COPs (MBIA)
4,000 District of Columbia Ballpark, Ser B-1 5.00 02/01/31 4,114,280
2,000 Missouri Joint Municipal Electrical Utility, Plum Point Project 5.00 01/01/25 2,089,280
1,500 Albuquerque, New Mexico, Gross Receipts Lodgers' Tax Refg 5.00 07/01/37 1,535,880
Ser 2004 A (FSA)
1,685 Oregon Department of Administrative Services, Ser 2005 B 5.00 11/01/24 1,751,288
COPs (FGIC)
2,000 Pennsylvania Public School Building Authority, Philadelphia School 5.00 06/01/33 2,044,560
District Ser 2003 (FSA)
-------- -------------
13,185 13,597,068
-------- -------------
Recreational Facilities Revenue (8.9%)
6,500 Denver Convention Center Hotel Authority, Colorado, Refg 5.00 12/01/35 6,686,030
Ser 2006 (XLCA)
Iowa,
3,600 Vision Iowa Ser 2001 (MBIA) 5.50 02/15/19 4,043,160
2,500 Vision Iowa Ser 2001 (MBIA) 5.50 02/15/20 2,815,025
10,000 Hamilton County, Ohio, Sales Tax Ser 2000 (Ambac) 5.25 12/01/32 10,407,400
-------- -------------
22,600 23,951,615
-------- -------------
Tax Allocation Revenue (0.9%)
2,390 San Jose Redevelopment Agency, California, Merged Area 5.00 08/01/32 2,431,108
Ser 2002 (MBIA)
-------- -------------
Transportation Facilities Revenue (31.2%)
5,000 Denver City & County, Colorado, Airport Refg Ser 2000 A 6.00 11/15/18 5,364,700
(AMT) (Ambac)
Miami Dade County, Florida,
2,155 Miami Int'l Airport Refg Ser 2003 B (AMT) (MBIA) 5.25 10/01/18 2,265,745
2,270 Miami Int'l Airport Refg Ser 2003 B (AMT) (MBIA) 5.25 10/01/19 2,376,713
5,000 Atlanta, Georgia, Airport Ser 2004 C (FSA) 5.00 01/01/33 5,122,900
5,000 Hawaii, Airports Refg Ser 2001 (AMT) (FGIC) 5.25 07/01/21 5,172,900
Chicago, Illinois,
3,000 O'Hare Int'l Airport, Ser 2005 (MBIA) 5.25 01/01/25 3,188,790
2,000 O' Hare Int'l Airport Third Lien Ser 2003 B-2 (AMT) (FSA) 5.75 01/01/23 2,171,180
4,000 Regional Transportation Authority, Illinois, Refg Ser 1999 (FSA) 5.75 06/01/21 4,604,760
2,500 Maryland Economic Development Corporation, Maryland Aviation 5.375 06/01/22 2,633,900
Administration Ser 2003 (AMT) (FSA)
2,000 Massachusetts Turnpike Authority, Metropolitan Highway ROLS RRII 5.701+++ 01/01/37 2,103,120
R536 (MBIA)
5,000 Minneapolis - St Paul Metropolitan Airports Commission, 5.25 01/01/32 5,174,800
Minnesota, Ser 2001 C (FGIC)
5,000 Nevada Department of Business & Industry, Las Vegas Monorail 0.00 01/01/21 2,523,400
1st Tier Ser 2000 (Ambac)
2,000 New Jersey Transportation Trust Fund Authority, Ser 2005 C (FGIC) 5.25 06/15/20 2,139,580
5,000 New Jersey Turnpike Authority, Ser 2003 A (Ambac) 5.00 01/01/30 5,145,500
Metropolitan Transportation Authority, New York,
6,805 State Service Contract Refg Ser 2002 B (MBIA) 5.50 07/01/20 7,350,829
10,000 Transportation Refg Ser 2002 A (Ambac) 5.50 11/15/17 10,846,400
2,000 Transportation Refg Ser 2002 A (FGIC) 5.00 11/15/25 2,067,400
Pennsylvania Turnpike Commission,
4,000 Ser R 2001 (Ambac) 5.00 12/01/26 4,135,800
4,000 Ser A 2004 (Ambac) 5.00 12/01/34 4,127,640
3,000 Harris County, Texas, Toll Road Sr Lien Ser 2005 A (FSA) 5.25 08/15/35 3,111,330
2,500 Port of Seattle, Washington, Ser 2001 B (AMT) (MBIA) 5.625 02/01/24 2,628,525
-------- -------------
82,230 84,255,912
-------- -------------
Water & Sewer Revenue (35.7%)
1,000 Phoenix Civic Improvement Corporation, Arizona, Jr Lien 5.00 07/01/27 1,035,310
Wastewater Ser 2004 (MBIA)
4,000 Eastern Municipal Water District, California, Water Ser 2006 A 5.00 07/01/32 4,122,880
COPs (MBIA)
5,000 Los Angeles Department Water & Power, California, 2006 Ser A-1 5.00 07/01/40 5,155,600
(Ambac)
2,000 Sacramento County, California, Sanitation District Financing 5.00 12/01/36 2,079,440
Authority
5,000 San Diego County Water Authority, California, Ser 2004 A COPs 5.00 05/01/29 5,158,750
(FSA)
10,000 Tampa Bay Water, Florida, Ser 2001 B (FGIC) 5.00 10/01/31 10,193,000
2,000 Atlanta, Georgia, Water & Wastewater Ser 1999 A (FGIC) 5.00 11/01/29 2,025,560
5,000 Honolulu City & County, Hawaii, Wastewater Ser 2001 (Ambac) 5.125 07/01/31 5,126,950
10,000 Louisville & Jefferson County Metropolitan Sewer District, 5.75 05/15/33 10,634,100
Kentucky, Ser 1999 A (FGIC)
3,800 Louisville Board of Water Works, Kentucky, Water Ser 2000 (FSA) 5.50 11/15/25 3,997,866
5,000 Detroit, Michigan, Sewage Disposal Ser 2001 A (FGIC) 5.125 07/01/31 5,165,200
5,000 Grand Strand Water & Sewer Authority, South Carolina, 5.00 06/01/31 5,107,400
Refg Ser 2001 (FSA)
Austin, Texas,
1,250 Water & Wastewater Refg Ser 2002 A (FSA) 6.135 05/15/27 1,376,000
2,000 Water & Wastewater Ser 2004 A (Ambac) 5.00 11/15/27 2,063,520
15,000 Houston, Texas, Combined Utility First Lien Refg 2004 Ser A (FGIC) 5.25 05/15/23 15,933,750
San Antonio, Texas,
2,000 Water & Refg Ser 2002 (FSA) 5.50 05/15/18 2,144,460
2,500 Water & Refg Ser 2002 (FSA) 5.50 05/15/20 2,675,250
2,000 Water & Refg Ser 2002 A (FSA) 5.00 05/15/32 2,039,600
Wichita Falls, Texas,
2,000 Water & Sewer Ser 2001 (Ambac) 5.375 08/01/20 2,114,500
3,000 Water & Sewer Ser 2001 (Ambac) 5.375 08/01/24 3,167,190
5,000 King County, Washington, Sewer Refg 2001 (FGIC) 5.00 01/01/31 5,098,350
-------- -------------
92,550 96,414,676
-------- -------------
Other Revenue (3.3%)
2,500 California, Economic Recovery Ser 2004 A (MBIA) 5.00 07/01/15 2,677,775
6,000 Golden State Tobacco Securitization Corporation, California, 5.00 06/01/38 6,156,900
-------- -------------
Enhanced Asset Backed Ser 2005 A (FGIC)
8,500 8,834,675
-------- -------------
Refunded (3.6%)
3,000 San Diego Unified School District, California, Ser 2003 E (FSA) 5.25 07/01/23# 3,261,570
3,000 Utah Board of Regents, University of Utah - Huntsman Cancer 5.50 04/01/18+ 3,200,580
Institute Refg Ser 2000 A (MBIA)
3,000 Alexandria Industrial Development Authority, Virginia, Institute for 5.90 10/01/30+ 3,269,160
-------- -------------
Defense Analysis Ser 2000 A (Ambac)
9,000 9,731,310
-------- -------------
370,690 TOTAL TAX-EXEMPT MUNICIPAL BONDS (Cost $368,712,462) 384,915,226
-------- -------------
SHORT-TERM TAX-EXEMPT MUNICIPAL OBLIGATIONS (4.1%)
400 Indiana Health Facility Financing Authority, Clarian Health 3.70* 03/01/30 400,000
Ser 2000 B (Demand 08/01/06)
10,100 San Antonio Educational Facilities Corporation, Texas, Trinity 3.68* 06/01/33 10,100,000
University Ser 2002 (Demand 08/01/06)
600 Roanoke Industrial Development Authority, Virginia, Carilion Health 3.68* 07/01/27 600,000
1997 A (Demand 08/01/05)
11,100 TOTAL SHORT-TERM TAX-EXEMPT MUNICIPAL OBLIGATIONS (Cost $11,100,000) 11,100,000
-------- -------------
$381,790 TOTAL INVESTMENTS (Cost $379,812,462) (a)(b) 146.6% 396,015,226
========
OTHER ASSETS IN EXCESS OF LIABILITIES 1.5 4,071,058
PREFERRED SHARES OF BENEFICIAL INTEREST (48.1) (130,000,000)
--------- -------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 100.0% $270,086,284
========= =============
----------
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.
ROLS Reset Option Longs. (Illiquid securities).
# Crossover refunded to call date shown.
+ Prerefunded to call date shown.
++ Security is a "step-up" bond where the coupon increases on a
predetermined future date.
+++ Current coupon rate for residual interest bond. This rate resets
periodically as the auction rate on the related security changes.
Positions in inverse floating rate municipal obligation have a value
of $9,032,395, which represents 3.3% of net assets applicable to
common shareholders.
* Current coupon of variable rate demand obligation.
** A portion of this security has been physically segregated in
connection with open futures contracts in the amount of $217,500.
(a) Securities have been designated as collateral in an amount equal to
$46,737,188 in connection with open futures contracts.
(b) The aggregate cost for federal income tax purposes is $379,807,273.
The aggregate gross unrealized appreciation is $16,504,032 and the
aggregate gross unrealized depreciation is $296,079, resulting in
net unrealized appreciation of $16,207,953.
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 JULY 31, 2006:
NUMBER OF DESCRIPTION, DELIVERY UNDERLYING FACE UNREALIZED
CONTRACTS LONG/SHORT MONTH AND YEAR AMOUNT AT VALUE DEPRECIATION
---------------------- -------------------- -------------------------------------- ------------------------ -------------------
150 Short U.S. Treasury Notes 10 year, $(15,904,688) $(119,944)
September 2006
300 Short U.S. Treasury Notes 5 year, (31,265,625) (96,918)
September 2006
-------------------
Total Unrealized Depreciation....... $(216,862)
===================
GEOGRAPHIC SUMMARY OF INVESTMENTS
BASED ON MARKET VALUE AS A PERCENT OF TOTAL INVESTMENTS
JULY, 2006 (UNAUDITED)
Alaska 2.2%
Arizona 0.8
California 9.9
Colorado 3.6
District of Columbia 1.0
Florida 5.0
Georgia 2.5
Hawaii 4.0
Illinois 11.1
Indiana 1.4
Iowa 1.7
Kentucky 3.7
Louisiana 0.5
Maryland 0.7
Massachusetts 0.5
Michigan 1.3
Missouri 0.5
Minnesota 3.2
Nebraska 0.3
Nevada 3.1
New Jersey 2.8
New Mexico 0.4
New York 7.2
North Carolina 1.2
Ohio 2.6
Oregon 0.4
Pennsylvania 3.0
South Carolina 4.6
Texas 14.0
Utah 0.8
Virginia 1.0
Washington 5.0
Total+ 100.0%
=====
----------
+ Does not include open short futures contracts with an underlying face
amount of $47,170,313 with unrealized depreciation of $216,862.
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 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
September 21, 2006
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
September 21, 2006
/s/ Francis Smith
Francis Smith
Principal Financial Officer
September 21, 2006
3