N-Q
 
 
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
(Address of principal executive offices) 		  10036
(Zip code)
Randy Takian
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: July 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 July 31, 2008 (unaudited)
                                 
PRINCIPAL                        
AMOUNT IN         COUPON     MATURITY        
THOUSANDS         RATE     DATE     VALUE  
       
Tax-Exempt Municipal Bonds (158.4%)
                        
       
Alaska (3.9%)
                        
$ 10,000    
North Slope Borough, Alaska, Ser 2000 B (MBIA Insd)
     0.00 %     06/30/10     $ 9,468,500  
       
 
                      
       
Arizona (1.8%)
                        
  1,305    
Arizona, Ser 2008 A (FSA Insd)
     5.00       09/01/27       1,306,918  
  2,000    
Arizona Board of Regents, Arizona State University Ser 2004 COPs (AMBAC Insd)
     5.00       09/01/30       1,984,060  
  1,000    
Phoenix Civic Improvement Corporation, Arizona, Jr Lien Wastewater Ser 2004 (MBIA Insd)
     5.00       07/01/27       1,009,640  
       
 
                      
       
 
                     4,300,618  
       
 
                      
       
California (21.7%)
                        
  1,205    
Alameda County Joint Powers Authority, California, Ser 2008 A (FSA Insd)
     5.00       12/01/24       1,234,728  
  945    
Alvord Unified School District, California, Ser 2007 A (FSA Insd)
     5.00       08/01/27       969,693  
  16,000    
Anaheim Public Financing Authority, California, Anaheim Electric Ser 2007-A (MBIA Insd) (a)
     4.50       10/01/37       14,484,960  
  2,500    
California Department of Water and Power Supply, Ser 2008 H (FSA Insd)
     5.00       05/01/22       2,605,625  
  4,000    
Eastern Municipal Water District, Water & Sewer Refg Ser 2006 A COPs (MBIA Insd)
     5.00       07/01/32       3,977,720  
  4,530    
Fontana Unified School District, California, Ser B (FSA Insd)
     0.00       08/01/30       1,378,977  
  6,000    
Golden State Tobacco Securitization Corporation, Enhanced Asset Backed Ser 2005 A (FGIC Insd)
     5.00       06/01/38       5,408,400  
  2,000    
Kern County Board of Education, Refg 2006 Ser A COPs (MBIA Insd)
     5.00       06/01/31       1,967,760  
  3,000    
Los Angeles, California, Ser 2004 A (MBIA Insd)
     5.00       09/01/24       3,083,760  
  725    
Oakland Joint Powers Financing Authority, California, Oakland Administration Buildings 2008 Ser B (AGC Insd)
     5.00       08/01/23       728,400  
  500    
Oakland Joint Powers Financing Authority, California, Oakland Administration Buildings 2008 Ser B (AGC Insd)
     5.00       08/01/25       495,480  
  2,000    
Sacramento County Sanitation District Financing Authority, California, Sacramento Regional Ser 2006 (FGIC Insd)
     5.00       12/01/36       1,978,940  
  5,000    
San Diego County Water Authority, California, Ser 2004 A COPs (FSA Insd) (a)
     5.00       05/01/29       5,036,650  
  1,000    
San Francisco City & County, City Buildings Ser 2007 A COPs (FGIC Insd)
     5.00       06/15/28       1,010,370  
  2,000    
San Francisco City & County, City Buildings Ser 2007 A COPs (FGIC Insd)
     4.50       09/01/37       1,766,660  
  3,310    
University of California (a)
     4.50       05/15/31       3,209,915  
  2,690    
University of California (a)
     4.50       05/15/31       2,576,350  
  1,000    
University of California, Limited Projects Ser 2005 B (FSA Insd)
     5.00       05/15/30       1,010,440  
       
 
                      
       
 
                     52,924,828  
       
 
                      
       
Colorado (5.2%)
                        
  2,000    
Arkansas River Power Authority, Colorado, Power Ser 2006 (XLCA Insd)
     5.25       10/01/40       1,723,520  
  510    
Colorado Health Facilities Authority, Ser 2006 ( FSA Insd)
     4.75       09/01/25       504,686  
  5,000    
Denver City & County, Colorado, Airport Refg Ser 2000 A (AMT) (AMBAC Insd)
     6.00       11/15/18       5,073,600  
  6,500    
Denver Convention Center Hotel Authority, Colorado, Refg Ser 2006 (XLCA Insd)
     5.00       12/01/35       5,426,395  
       
 
                      
       
 
                     12,728,201  
       
 
                      
       
Connecticut (0.5%)
                        
  1,225    
Connecticut Health and Educational Facilities Authority, Quinnipiac University Ser K-1 (MBIA Insd)
     5.00       07/01/27       1,225,894  
       
 
                      
       
District of Columbia (2.0%)
                        
  4,000    
District of Columbia Ballpark, Ser 2006 B-1 (FGIC Insd)
     5.00       02/01/31       3,675,960  
  500    
District of Columbia Water & Sewer Authority, Ser 2008 A (AGC Insd)
     5.00       10/01/28       504,730  
  625    
District of Columbia Water & Sewer Authority, Ser 2008 A (AGC Insd)
     5.00       10/01/29       627,925  
       
 
                      
       
 
                     4,808,615  
       
 
                      
       
Florida (6.4%)
                        
  1,265    
Mid-Bay Bridge Authority, Florida, Ser 2008 A (AGC Insd)
     5.00       10/01/27       1,246,518  
  2,155    
Miami Dade County, Florida, Miami Int’l Airport Refg Ser 2003 B (AMT) (MBIA Insd)
     5.25       10/01/18       2,151,811  
  2,270    
Miami Dade County, Florida, Miami Int’l Airport Refg Ser 2003 B (AMT) (MBIA Insd)
     5.25       10/01/19       2,241,920  
  10,000    
Tampa Bay Water, Florida, Ser 2001 B (FGIC Insd)
     5.00       10/01/31       9,945,000  

 

 

                                 
PRINCIPAL                        
AMOUNT IN         COUPON     MATURITY        
THOUSANDS         RATE     DATE     VALUE  
       
 
                     15,585,249  
       
 
                      
       
Georgia (3.2%)
                        
  900    
Fulton County Development Authority, Georgia, Morehouse College Ser 2000 (AMBAC Insd)
     6.25       12/01/10 (b)     987,903  
  5,000    
Atlanta, Georgia, Airport Ser 2004 C (FSA Insd) (a)
     5.00       01/01/33       5,002,278  
  2,000    
Atlanta, Georgia, Water & Wastewater Ser 1999 A (FGIC Insd)
     5.00       11/01/29       1,884,980  
       
 
                      
       
 
                     7,875,161  
       
 
                      
       
Hawaii (6.1%)
                        
  5,000    
Hawaii, Airports Refg Ser 2001 (AMT) (FGIC Insd)
     5.25       07/01/21       4,719,600  
  5,000    
Honolulu City & County, Hawaii, Ser 2003 A (MBIA Insd) (a)
     5.25       03/01/25       5,168,650  
  5,000    
Honolulu City & County, Hawaii, Ser 2003 A (MBIA Insd) (a)
     5.25       03/01/26       5,133,375  
       
 
                      
       
 
                     15,021,625  
       
 
                      
       
Idaho (0.9%)
                        
  2,065    
Idaho Housing and Finance Association, Federal Highway Trust 2008 Ser A (AGC Insd)
     5.25       07/15/25       2,198,378  
       
 
                      
       
Illinois (20.1%)
                        
  3,000    
Chicago, Illinois, O’Hare Int’l Airport, Ser 2005 A (MBIA Insd)
     5.25       01/01/25       3,012,660  
  2,000    
Chicago, Illinois, O’ Hare Int’l Airport Third Lien Ser 2003 B-2 (AMT) (FSA Insd)
     5.75       01/01/23       2,020,240  
  2,000    
Chicago, Illinois, Refg 2001 A (MBIA Insd)
     0.00       01/01/21 (c)     1,874,740  
  2,000    
Chicago, Illinois, Refg 2001 A (MBIA Insd)
     0.00       01/01/22 (c)     1,865,480  
  8,000    
Chicago, Illinois, Refg Ser 1992 (AMBAC Insd)
     6.25       01/01/11       8,385,041  
  1,370    
Chicago, Illinois, Transit Authority Ser 2008 (AGC Insd)
     5.25       06/01/26       1,421,046  
  940    
Chicago, Illinois, Second Lien Water Ser 2008 (AGC Insd)
     5.00       11/01/27       958,828  
  670    
De Kalb County, Illinois, Community Unit School District No. 428 (FSA Insd)
     5.00       01/01/27       682,569  
  305    
De Kalb County, Illinois, Community Unit School District No. 428 (FSA Insd)
     5.00       01/01/28       309,334  
  10,000    
Illinois, Ser 2001 (MBIA Insd) (a)
     5.375       04/01/15       11,034,450  
  10,000    
Illinois, Ser 2001 (MBIA Insd) (a)
     5.375       04/01/16       11,034,450  
  5,375    
Kendall Kane & Will County, Illinois, Community Unit School District No. 308 (FSA Insd)
     0.00       02/01/27       2,038,523  
  4,000    
Regional Transportation Authority, Illinois, Refg Ser 1999 (FSA Insd)
     5.75       06/01/21       4,552,800  
       
 
                      
       
 
                     49,190,161  
       
 
                      
       
Indiana (1.2%)
                        
  3,000    
Indiana Health Facilities Financing Authority, Community Health Ser 2005 A (AMBAC Insd)
     5.00       05/01/35       2,835,000  
       
 
                      
       
Iowa (2.7%)
                        
  3,600    
Vision Iowa Ser 2001 (MBIA Insd)
     5.50       02/15/19       3,938,652  
  2,500    
Vision Iowa Ser 2001 (MBIA Insd)
     5.50       02/15/20       2,732,250  
       
 
                      
       
 
                     6,670,902  
       
 
                      
       
Kentucky (5.8%)
                        
  10,000    
Louisville & Jefferson County Metropolitan Sewer District, Kentucky, Ser 1999 A (FGIC Insd)
     5.75       05/15/33       10,256,800  
  3,800    
Louisville Board of Water Works, Kentucky, Water Ser 2000 (FSA Insd)
     5.50       11/15/25       3,959,600  
       
 
                      
       
 
                     14,216,400  
       
 
                      
       
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       1,991,640  
       
 
                      
       
Maryland (1.0%)
                        
  2,500    
Maryland Economic Development Corporation, Maryland Aviation Administration Ser 2003 (AMT) (FSA Insd)
     5.375       06/01/22       2,476,950  
       
 
                      
       
Michigan (1.6%)
                        
  850    
Ferris State University, Michigan, Ser 2008 (FSA Insd)
     4.50       10/01/24       832,737  
  425    
Ferris State University, Michigan, Ser 2008 (FSA Insd)
     4.50       10/01/25       413,572  
  1,190    
Wayne State University, Michigan, Ser 2008 (FSA Insd)
     5.00       11/15/29       1,202,317  
  265    
Wayne State University, Michigan, Ser 2008 (FSA Insd)
     5.00       01/15/30       266,889  
  1,125    
Western Michigan University, Ser 2008 (FSA Insd)
     5.00       11/15/23       1,164,554  
       
 
                      
       
 
                     3,880,069  
       
 
                      

 

 

                                 
PRINCIPAL                        
AMOUNT IN         COUPON     MATURITY        
THOUSANDS         RATE     DATE     VALUE  
       
Minnesota (2.9%)
                        
  3,000    
Brainerd Independent School District #181, Minnesota, Ser 2002 A (FGIC Insd)
     5.375       02/01/18       3,169,830  
  4,000    
Minneapolis, Minnesota, Fairview Health 2005 Ser D (AMBAC Insd)
     5.00       11/15/34       3,869,040  
       
 
                      
       
 
                     7,038,870  
       
 
                      
       
Missouri (0.8%)
                        
  2,000    
Missouri Joint Municipal Electrical Utility Commission, Plum Point Ser 2006 (MBIA Insd)
     5.00       01/01/25       1,888,560  
       
 
                      
       
Montana (0.7%)
                        
  1,750    
Montana Facility Finance Authority, Benefits Health System (AGC Insd)
     5.00       01/01/37       1,721,230  
       
 
                      
       
Nevada (5.5%)
                        
  4,000    
Clark County, Nevada, Transportation Impr Ltd Tax Ser 06/01/92 B (AMBAC Insd)
     6.50       06/01/17       4,751,800  
  1,500    
Nevada Department of Business & Industry, Las Vegas Monorail 1st Tier Ser 2000 (AMBAC Insd)
     0.00       01/01/21       504,270  
  8,000    
Nevada ST Capital, Impt & Cultural Ser 2000
     5.00       06/01/26       8,218,480  
       
 
                      
       
 
                     13,474,550  
       
 
                      
       
New Jersey (4.3%)
                        
  510    
New Jersey Educational Facilities Authority, Rowan University Ser 2008 B (AGC Insd)
     5.00       07/01/26       525,259  
  2,770    
New Jersey Housing Mortgage Finance Authority, Home Buyer Ser 2000 CC (AMT) (MBIA Insd)
     5.875       10/01/31       2,839,250  
  2,000    
New Jersey Transportation Trust Fund Authority, Ser 2005 C (FGIC Insd)
     5.25       06/15/20       2,102,800  
  5,000    
New Jersey Turnpike Authority, Ser 2003 A (AMBAC Insd)
     5.00       01/01/30       4,915,900  
       
 
                      
       
 
                     10,383,209  
       
 
                      
       
New Mexico (0.6%)
                        
  1,500    
Albuquerque, New Mexico, Gross Receipts Lodgers’ Tax Refg Ser 2004 A (FSA Insd)
     5.00       07/01/37       1,502,220  
       
 
                      
       
New York (16.7%)
                        
  12,000    
Hudson Yards Infrastructure Corporation, New York, Ser 2006 A (MBIA Insd)
     4.50       02/15/47       10,470,240  
  1,000    
Long Island Power Authority, New York, Ser 2006 A (XLCA Insd)
     5.00       12/01/26       986,940  
  6,805    
Metropolitan Transportation Authority, New York, State Service Contract Refg Ser 2002 B (MBIA Insd)
     5.50       07/01/20       7,213,164  
  10,000    
Metropolitan Transportation Authority, New York, Transportation Refg Ser 2002 A (AMBAC Insd)
     5.50       11/15/17       10,483,099  
  2,000    
Metropolitan Transportation Authority, New York, Transportation Refg Ser 2002 A (FGIC Insd)
     5.00       11/15/25       1,981,580  
  1,000    
New York City Industrial Development Agency, New York, Queens Baseball Stadium Ser 2006 (AMBAC Insd)
     5.00       01/01/31       968,520  
  2,000    
New York City Industrial Development Agency, New York, Yankee Stadium Ser 2006 (FGIC Insd)
     5.00       03/01/46       1,883,680  
  2,000    
New York State Dormitory Authority, Montefiore Hospital — FHA Insured Mtge Ser 2004 (FGIC Insd)
     5.00       08/01/29       1,905,060  
  5,000    
New York State Energy Research & Development Authority, Brooklyn Union Gas Co 1996 Ser (MBIA Insd) (d)
     5.50       01/01/21       5,022,950  
       
 
                      
       
 
                     40,915,233  
       
 
                      
       
North Carolina (0.8%)
                        
  2,000    
University of North Carolina at Wilmington, Student Housing Ser 2005 COPs (FGIC Insd)
     5.00       06/01/36       1,929,960  
       
 
                      
       
Ohio (1.3%)
                        
  2,125    
Cleveland, Ohio, Public Power System Ser 2008B-2 (MBIA Insd)
     0.00       11/15/28       705,373  
  2,800    
Cleveland, Ohio, Public Power System Ser 2008B-2 (MBIA Insd)
     0.00       11/15/38       514,864  
  1,965    
Hamilton County, Ohio, Sales Tax 2000 (AMBAC Insd)
     5.25       12/01/32       1,972,113  
       
 
                      
       
 
                     3,192,350  
       
 
                      
       
Oregon (0.7%)
                        
  1,685    
Oregon Department of Administrative Services, COPs Ser 2005 B (FGIC Insd)
     5.00       11/01/24       1,701,193  
       
 
                      
       
Pennsylvania (3.8%)
                        
  1,500    
Delaware County Industrial Development Authority, Pennsylvania, Aqua Inc Ser A 2005 (AMT) (FGIC Insd)
     5.00       11/01/37       1,329,900  
  4,000    
Pennsylvania Turnpike Commission, Ser A 2004 (AMBAC Insd)
     5.00       12/01/34       3,942,120  
  4,000    
Pennsylvania Turnpike Commission, Ser R 2001 (AMBAC Insd)
     5.00       12/01/26       4,053,880  
       
 
                      
       
 
                     9,325,900  
       
 
                      
       
South Carolina (7.4%)
                        
  5,000    
Grand Strand Water & Sewer Authority, South Carolina, Refg Ser 2001 (FSA Insd)
     5.00       06/01/31       5,006,550  
  1,000    
Medical University Hospital Authority, South Carolina, FHA Insured Mtge Ser 2004 A (MBIA Insd)
     5.25       02/15/25       1,018,610  
  2,000    
South Carolina Public Service Authority, Santee Cooper Ser 2003 A (AMBAC Insd) (a)
     5.00       01/01/27       2,028,465  

 

 

                                 
PRINCIPAL                        
AMOUNT IN         COUPON     MATURITY        
THOUSANDS         RATE     DATE     VALUE  
  9,325    
South Carolina Public Service Authority, Ser 2002 B (FSA Insd)
     5.375       01/01/17       9,929,540  
       
 
                      
       
 
                     17,983,165  
       
 
                      
       
Texas (18.0%)
                        
  10,000    
Austin, Texas, Water & Wastewater Refg Ser 2001 A & B (FSA Insd) (a)
     5.125       05/15/27       10,044,175  
  2,000    
Austin, Texas, Water & Wastewater Ser 2004 A (AMBAC Insd)
     5.00       11/15/27       1,994,940  
  800    
Friendswood Independent School District, Texas, Ser 2008 (PSF Insd)
     5.00       02/15/27       814,568  
  1,840    
Harris County Health Facilities Development Corp., Texas, Thermal Utility Ser 2008 (AGC Insd)
     5.00       11/15/27       1,848,685  
  1,000    
Houston Community College System, Texas, Senior Lien Fee Ser 2008 (FSA Insd)
     5.00       04/15/26       1,021,530  
  225    
Houston Community College System, Texas, Senior Lien Fee Ser 2008 (FSA Insd)
     4.50       04/15/27       215,908  
  3,615    
Houston, Texas, Hotel Occupancy Ser B
     0.00       09/01/27       1,281,228  
  15,000    
Houston, Texas, Combined Utility First Lien Refg 2004 Ser A (FGIC Insd)
     5.25       05/15/23       15,215,400  
  1,270    
Humble Independent School District, Texas, Ser 2008 A (AGC Insd)
     5.00       02/15/27       1,288,262  
  6,700    
North Texas Tollway Authority, Ser D (AGC Insd)
     0.00       01/01/28       2,150,164  
  2,000    
San Antonio, Texas, Water & Refg Ser 2002 (FSA Insd)
     5.50       05/15/18       2,124,980  
  2,500    
San Antonio, Texas, Water & Refg Ser 2002 (FSA Insd)
     5.50       05/15/20       2,648,950  
  2,000    
San Antonio, Texas, Water & Refg Ser 2002 A (FSA Insd)
     5.00       05/15/32       1,999,840  
  410    
Victoria Independent School District, Texas, Ser 2008 (PSF Insd)
     5.00       02/15/24       423,182  
  815    
Victoria Independent School District, Texas, Ser 2008 (PSF Insd)
     5.00       02/15/25       836,761  
       
 
                      
       
 
                     43,908,573  
       
 
                      
       
Washington (10.1%)
                        
  3,000    
Cowlitz County, Public Utility District # 1, Washington, Production Ser 2006 (MBIA Insd)
     5.00       09/01/31       2,939,520  
  5,000    
King County, Washington, Sewer Refg 2001 (FGIC Insd)
     5.00       01/01/31       5,012,250  
  4,010    
Port of Seattle, Washington, Passenger Facility Ser 1998 A (MBIA Insd) (a)
     5.00       12/01/23       4,020,226  
  2,500    
Port of Seattle, Washington, Ser 2001 B (AMT) (MBIA Insd)
     5.625       02/01/24       2,505,850  
  10,000    
Seattle, Washington, Light & Power Refg Rev 2001 (FSA Insd)
     5.125       03/01/26       10,151,899  
       
 
                      
       
 
                     24,629,745  
       
 
                      
 
       
Total Tax-Exempt Municipal Bonds (Cost $334,365,410)
                     386,992,949  
       
 
                      
NUMBER OF  
 
                        
SHARES (000)  
 
                        
       
Short-Term Investment (f) (14.8%)
                        
       
Investment Company
                        
  36,144    
Morgan Stanley Institutional Liquidity Tax-Exempt Portfolio — Institutional Class (Cost $36,143,870)
                     36,143,870  
       
 
                      
 
       
Total Investments (Cost $370,509,280)
                     423,136,819  
       
 
                      
PRINCIPAL  
 
                        
AMOUNT IN  
 
                        
THOUSANDS  
 
                        
       
Floating Rate Note and Dealer Trusts Related to Securities Held
(-22.1%)
                        
  (54,075 )  
Notes with interest rates ranging from 1.51% to 2.74% at July 31, 2008 and contractual maturities of collateral ranging from 04/01/15 to 10/01/37 (e) (Cost $(54,075,000))
                     (54,075,000 )
       
 
                      
 
       
Total Net Investments (Cost $316,434,280) (g)(h)
             151.1       369,061,819  
 
       
Liabilities in Excess of Other Assets
             (7.4 )     (18,155,703 )
 
       
Preferred Shares of Beneficial Interest
             (43.6 )     (106,600,000 )
       
 
                    
 
       
Net Assets Applicable to Common Shareholders
             100.0 %   $ 244,306,116  
       
 
                    

 

 

 
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)   Underlying security related to inverse floater entered into by the Trust.
 
(b)   Prerefunded to call date shown.
 
(c)   Security is a “step-up” bond where the coupon increases on predetermined future date.
 
(d)    A portion of this security has been physically segregated in connection with open futures  contracts in the amount of $493,565.
 
(e)   Floating rate note obligations related to securities held — The Fund 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 Fund to retain residual interest in the bonds. The Fund enters into shortfall agreements with the Dealer Trusts which commit the Fund 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 Fund (inverse floating rate investments) include the right of the Fund (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 Fund, thereby collapsing the Dealer Trusts. The Fund accounts for the transfer of bonds to the Dealer Trusts as secured borrowings, with the securities transferred remaining in the Fund’s investment assets, and the related floating rate notes reflected as Fund 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 July 31, 2008, Fund investments with a value of $74,753,718 are held by the Dealer Trusts and serve as collateral for the $54,075,000 in floating rate note obligations outstanding at that date.
 
(f)   The Fund invests in Morgan Stanley Institutional Liquidity Tax-Exempt Portfolio — Institutional Class, an open-end management investment company managed by the Investment Adviser. Investment Advisory fees paid by the Fund are reduced by an amount equal to the advisory and administrative service fees paid by Morgan Stanley Institutional Liquidity Tax-Exempt Portfolio — Institutional Class with respect to assets invested by the Fund in Morgan Stanley Institutional Liquidity Tax-Exempt Portfolio — Institutional Class.
 
(g)   Securities have been designated as collateral in an amount equal to $100,302,400 in connection with open futures, swap contracts and when-issued securities.
 
(h)   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.
 
PSF   Texas Permanent School Fund Guarantee Program.
 
XLCA   XL Capital Assurance Inc.

 

 

FUTURES CONTRACTS OPEN AT JULY 31, 2008:
                                 
                            UNREALIZED  
NUMBER OF           DESCRIPTION, DELIVERY     UNDERLYING FACE     APPRECIATION  
CONTRACTS   LONG/SHORT     MONTH AND YEAR     AMOUNT AT VALUE     (DEPRECIATION)  
 
 
                                
638
   Long   U.S. Treasury Swap 5 Year
September 2008		   $ 68,814,284     $ 241,774  
 
                                
226
   Long   U.S. Treasury Notes 10 Year
September 2008		     25,951,157       9,478  
 
                                
49
   Short   U.S. Treasury Notes 10 Year
September 2008		     (5,194,000 )     (47,595 )
 
                                
94
   Short   U.S. Treasury Swap 10 Year
September 2008		     (30,495,969 )     (27,249 )
 
                                
97
   Short   U.S. Treasury Bonds 5 Year
September 2008		     (11,203,500 )     (115,243 )
 
                                
421
   Short   U.S. Treasury Notes 5 Year
September 2008		     (46,872,431 )     (299,489 )
 
                              
 
                                
 
           Net Unrealized Depreciation             ($238,324 )
 
                              

 

 

INTEREST RATE SWAP CONTRACTS OPEN AT JULY 31, 2008:
                                                         
                                                    UNREALIZED  
    NOTIONAL     PAYMENTS             PAYMENTS             TERMINATION     APPRECIATION  
COUNTERPARTY   AMOUNT (000)     RECEIVED BY FUND             MADE BY FUND             DATE     (DEPRECIATION)  
 
JPMorgan Chase Bank N.A.
   $ 16,940     Fixed Rate 5.385%           Floating Rate 0.00%     @     February 14, 2018   $ 72,164  
 
                                                        
Bank of America N.A.
     3,827     Fixed Rate 5.58           Floating Rate 0.00     @     February 28, 2018     42,556  
 
                                                        
Bank of America N.A.
     4,815     Fixed Rate 5.070           Floating Rate 0.00     @     April 14, 2018     (37,798 )
 
                                                        
Bank of America N.A.
     4,775     Fixed Rate 4.982           Floating Rate 0.00     @     April 15, 2018     (52,430 )
 
                                                        
Merrill Lynch & Co.
     6,375     Fixed Rate 5.00           Floating Rate 0.00     @     April 15, 2018     (66,045 )
 
                                                        
JPMorgan Chase Bank N.A.
     21,580     Floating Rate 0.00     @     Fixed Rate 5.831           February 14, 2023     (180,625 )
 
                                                        
Bank of America N.A.
     4,813     Floating Rate 0.00     @     Fixed Rate 5.99           February 28, 2023     (61,318 )
 
                                                        
Bank of America N.A.
     6,160     Floating Rate 0.00     @     Fixed Rate 5.47           April 14, 2023     9,486  
 
                                                        
Bank of America N.A.
     5,870     Floating Rate 0.00     @     Fixed Rate 5.38           April 15, 2023     23,480  
 
                                                        
Merrill Lynch & Co.
     8,245     Floating Rate 0.00     @     Fixed Rate 5.395           April 15, 2023     29,600  
 
                                                      
 
                                                        
            Net Unrealized Depreciation                     ($220,928 )
 
                                                      
 
@   Floating rate represents USD-3 months LIBOR.

 

 

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/ Randy Takian
    
 
Randy Takian
   
Principal Executive Officer
    
September 18, 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/ Randy Takian
    
 
Randy Takian
   
Principal Executive Officer
    
September 18, 2008
    
 
    
/s/ Francis Smith
    
 
Francis Smith
   
Principal Financial Officer
    
September 18, 2008
    

3