UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Morgan Stanley Insured Municipal Income Trust

(Exact name of registrant as specified in charter)

522 Fifth Avenue, New York, New York 10036
(Address of principal executive offices) (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: 212-296-6963

Date of fiscal year end: October 31, 2009

Date of reporting period: July 31, 2009

 

 

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 Income Trust
Portfolio of Investments • July 31, 2009 (unaudited)

PRINCIPAL
AMOUNT IN						COUPON				MATURITY
THOUSANDS						RATE				DATE				VALUE
				Tax-Exempt Municipal Bonds (158.1%)
				Alaska (0.5%)
$	1,250			Matanuska-Susitna, Goose Creek Correctional Center, Ser 2009 (AGC Insd)			6.00	%			09/01/28			$	1,376,088
				Arizona (1.4%)
	1,495			Arizona Certificates of Participation, Ser 2008 A (FSA Insd)			5.00				09/01/26				1,502,191
	2,500			University of Arizona, 2003 Ser B (COPs) (AMBAC Insd)			5.00				06/01/23				2,556,475
															4,058,666
				California (36.9%)
	1,475			Alameda County Joint Powers Authority, Ser 2008 (FSA Insd)			5.00				12/01/24				1,500,694
	1,655			Alhambra Unified School District, California, Ser 2007 A (FSA Insd)			0.00				08/01/35				297,552
	1,160			Alvord Unified School District, 2007 Election Ser 2007 A (FSA Insd)			5.00				08/01/27				1,138,412
	20,000			Anaheim Public Financing Authority, California, Anaheim Electric Ser 2007-A (NATL-RE Insd)(a)			4.50				10/01/37				16,834,800
	1,170			Beverly Hills Unified School District, Election of 2008 Ser 2009 (b)			0.00				08/01/26				492,102
	2,275			Beverly Hills Unified School District, Election of 2008 Ser 2009 (b)			0.00				08/01/31				686,618
	8,000			California, Ser 2007 (NATL-RE Insd)			4.25				08/01/33				6,386,560
	3,050			California Department of Water Resources Power Supply, Ser 2008 H (FSA Insd)			5.00				05/01/22				3,175,660
	5,000			California Infrastructure & Economic Development Bank, Bay Area Toll Bridges Seismic Retrofit 1st Lien Ser 2003 A (AMBAC Insd) (ETM)			5.00				01/01/28				11,385,160
	5,000			California Infrastructure & Economic Development Bank, Bay Area Toll Bridges Seismic Retrofit 1st Lien Ser 2003 A (FGIC Insd) (ETM)			5.00				01/01/28				5,692,850
	585			Clovis Unified School District, Election of 2004 Ser 2004 A (FGIC Insd) (b)			0.00				08/01/29				160,635
	3,065			El Segundo Unified School District, Election of 2008 Ser 2009 A (b)			0.00				08/01/31				728,305
	6,000			Golden State Tobacco Securitization Corporation, California, Enhanced Asset Backed Ser 2005 A (FGIC Insd)			5.00				06/01/38				4,954,680
	9,000			Long Beach, Harbor Refg Ser 1998 A (AMT) (FGIC Insd)			6.00				05/15/18				9,892,170
	3,000			Los Angeles, Ser 2004 A (NATL-RE Insd)			5.00				09/01/24				3,104,550
	5,000			Los Angeles Department of Water & Power, Water 2004 Ser C (NATL-RE Insd) (a)			5.00				07/01/24				5,125,018
	1,665			Menifee Union School District, Election of 2008 Ser 2008 C (AGC Insd) (b)			0.00				08/01/34				317,299
	1,845			Moreland California School District 2014 Ser C			0.00				08/01/29				483,814
	1,320			Oak Grove California School District Capital Appreciation Election 2008 Ser A			0.00				08/01/28				391,512
	4,000			Oxnard Financing Authority, Water & Power, Water 2004 Ser C (XLCA Insd)			5.00				06/01/28				3,913,760
	3,825			Paterson Joint Unified School District, Election of 2008 Ser 2009 B (FSA Insd) (b)			0.00				08/01/34				768,787
	3,826			Paterson Joint Unified School District, Election of 2008 Ser 2009 B (FSA Insd) (b)			0.00				08/01/35				765,372
	3,827			Paterson Joint Unified School District, Election of 2008 Ser 2009 B (FSA Insd) (b)			0.00				08/01/36				51,558
	1,000			Port of Oakland, 2002 Ser L (AMT) (NATL-RE FGIC Insd)			5.00				11/01/21				916,630
	3,925			Poway Unified School District, Election of 2008 Ser 2009 A (b)			0.00				08/01/28				1,164,155
	4,245			Poway Unified School District, Election of 2008 Ser 2009 A (b)			0.00				08/01/31				1,008,697
	3,000			Sacramento County Sanitation District Financing Authority, California, Sacramento Regional Ser 2006 (FGIC Insd)			5.00				12/01/36				2,887,380
	5,000			San Diego County Water Authority, California, Ser 2002 A (COPs) (NATL-RE Insd)			5.00				05/01/27				5,042,100
	5,000			San Diego County Water Authority, California, Ser 2004 A (COPs) (FSA Insd) (a)			5.00				05/01/29				5,009,525
	3,000			San Francisco City & County, City Buildings Ser 2007 A (COPs) (FGIC Insd)			4.50				09/01/37				2,573,280
	2,000			University of California, Ser 2003 B (AMBAC Insd)			5.00				05/15/22				2,049,180
	3,310			University of California, Ser 2007 J (FSA Insd) (a)			4.50				05/15/31				2,991,145
	2,690			University of California, Ser 2007 J (FSA Insd) (a)			4.50				05/15/35				2,370,634
	11,350			Wm S Hart California Union High School Capital Appreciation 2008 Ser A			0.00				08/01/33				2,339,349
															106,599,944
				Colorado (1.9%)
	4,000			Arkansas River Power Authority, Colorado, Power Ser 2006 (XLCA Insd)			5.25				10/01/40				3,140,040
	3,000			Denver Convention Center Hotel Authority, Refg Ser 2006 (XLCA Insd)			5.00				12/01/30				2,304,540
															5,444,580
				Connecticut (0.5%)
	1,525			Connecticut Health & Educational Facilities Authority, Quinnipiac University Issue Ser 2007 K-2 (NATL-RE Insd)			5.00				07/01/25				1,545,740
				District of Columbia (4.5%)
	1,000			District of Columbia, Ser 2008 E (BHAC Insd)(a)			5.00				06/01/26				1,042,911
	1,000			District of Columbia, Ser 2008 E (BHAC Insd)(a)			5.00				06/01/27				1,042,911
	2,000			District of Columbia, Ser 2008 E (BHAC Insd)(a)			5.00				06/01/28				2,085,823
	3,000			District of Columbia, American Association for the Advancement of Science Ser 1997 (AMBAC Insd)			5.125				01/01/27				2,920,680
	2,000			District of Columbia Ballpark, Ser 2006 B-1 (FGIC Insd)			5.00				02/01/31				1,635,180
	2,540			District of Columbia Income Tax Secured, Ser 2009A (a)			5.25				12/01/27				2,738,059
	1,350			District of Columbia Water & Sewer Authority, Refg Sub-Lien Ser 2008A (AGC Insd)			5.00				10/01/28				1,386,882
															12,852,446

PRINCIPAL
AMOUNT IN						COUPON				MATURITY
THOUSANDS						RATE				DATE				VALUE
				Florida (10.6%)
	1,550			Florida Mid-Bay Bridge Authority, Refg Ser 2008 (AGC Insd)			5.00				10/01/27				1,588,859
	15,000			Miami-Dade County School Board, 2003 Ser A (FGIC Insd)			5.00				08/01/29				14,307,000
	1,000			Miami-Dade County Building Better Communities, Ser 2009 B-1			6.00				07/01/38				1,042,680
	3,000			Orange County School Board, Ser 2001 A (COPs) (AMBAC Insd)			5.25				08/01/14				3,212,550
	1,500			Palm Beach County Solid Waste Authority, Ser 2009 (BHAC Insd)			5.50				10/01/23				1,656,000
	1,000			Port St Lucie Florida Utility			5.00				09/01/29				985,010
	2,670			Tampa Bay Sports Authority, Refg Sales Tax, Ser 2005 (FSA Insd)			5.00				01/01/26				2,719,315
	5,000			Tampa Bay Water Authority, Ser 2001 A (FGIC Insd)			5.00				10/01/28				5,003,700
															30,515,113
				Georgia (4.2%)
	5,000			Atlanta, Airport Passenger Facilities Sub-Lien Ser 2004 C (FSA Insd) (a)			5.00				01/01/33				5,007,775
	5,000			Atlanta, Water & Wastewater, Ser 2004 (FSA Insd)			5.00				11/01/23				5,055,950
	2,000			Augusta, Water & Sewer Ser 2004 (FSA Insd) (c)			5.25				10/01/39				2,025,100
															12,088,825
				Hawaii (1.7%)
	5,000			Hawaii Department of Budget & Finance, Hawaiian Electric Co Ser 1999 C (AMT) (AMBAC Insd)			6.20				11/01/29				4,993,700
				Idaho (0.9%)
	2,500			Idaho Housing & Finance Association, Federal Highway Trust, Ser 2008 A (AGC Insd)			5.25				07/15/24				2,682,425
				Illinois (7.5%)
	5,000			Chicago, O’Hare Int’l Airport, Third Lien Ser 2005 A (NATL-RE Insd)			5.25				01/01/25				5,086,900
	480			Chicago Transit Authority, Capital Grant Receipts Federal Transit Administration Section 5309 Ser 2008 (AGC Insd)			5.25				06/01/25				511,594
	1,210			Chicago Transit Authority, Capital Grant Receipts Federal Transit Administration Section 5309 Ser 2008 (AGC Insd)			5.25				06/01/26				1,282,709
	1,175			DeKalb County Community Unit School District #428, Ser 2008 (FSA Insd)			5.00				01/01/27				1,219,909
	2,000			Illinois Finance Authority, Swedish American Hospital Ser A (FSA Insd)			5.00				11/15/31				1,589,640
	1,595			Illinois Finance Authority, Northwestern Memorial Hospital Ser 2009 B			5.375				08/15/24				1,644,270
	6,575			Kendall, Kane & Will Counties, Community Unit School District #308 Capital Appreciation Ser 2008 (FSA Insd) (b)			0.00				02/01/27				2,409,672
	3,000			Metropolitan Pier & Exposition Authority, McCormick Place Refg Ser 2002 B (NATL-RE Insd)			0.00	(d)			06/15/18				2,935,200
	5,000			Metropolitan Pier & Exposition Authority, McCormick Place Ser 2002 A (NATL-RE Insd)			5.25				06/15/42				4,968,650
															21,648,542
				Indiana (0.8%)
	2,400			Marion County Convention & Recreational Facilities Authority, Refg Ser 2003 A (AMBAC Insd)			5.00				06/01/19				2,439,816
				Iowa (1.4%)
	2,225			Iowa State Special Obligation lJobs Program Series A (a)			5.00				06/01/26				2,390,463
	1,665			Iowa State Special Obligation lJobs Program Series A (a)			5.00				06/01/25				1,775,387
															4,165,850
				Kansas (0.7%)
	755			Kansas St Development Financing Authority			5.50				11/15/29				761,425
	4,000			Wyandote County/Kansas City Unified Government, Board of Public Utilities Ser 2009-A (BHAC Insd)			5.25				09/01/34				1,332,270
															2,093,695
				Kentucky (0.7%)
	2,000			Kentucky Properties & Buildings Community, Refg Project N0 93, Seer 2009 (AGC Insd)			5.25				02/01/18				2,107,020
				Louisiana (1.4%)
	4,000			Lafayette, Utilities Ser 2004 (NATL-RE Insd)			5.25				11/01/25				4,132,920
				Massachusetts (3.9%)
	2,400			Massachusetts Health & Educational Facilities Authority, Boston College, Ser 2008 M-2			5.50				06/01/30				2,687,352
	7,925			Massachusetts ST Health & Educational Facilities Authority, Harvard University, Ser 2009 A			5.50				11/15/16				8,539,090
															11,226,442
				Michigan (1.9%)
	2,390			Detroit, Sewage Refg Ser 2003 A (FSA Insd)			5.00				07/01/28				2,266,604
	1,125			Ferris State University of Michigan, Refg Ser 2008 (FSA Insd)			4.50				10/01/23				1,134,023
	425			Ferris State University of Michigan, Refg Ser 2008 (FSA Insd)			4.50				10/01/24				425,769
	760			Wayne State University of Michigan, Refg Ser 2008 (FSA Insd)			5.00				11/15/25				786,266
	960			Wayne State University of Michigan, Refg Ser 2008 (FSA Insd)			5.00				11/15/29				963,466
															5,576,127
				Missouri (0.8%)
	2,500			Missouri Joint Municipal Electric Utility Commission Plum Point Ser 2006 (NATL-RE Insd)			5.00				01/01/26				2,284,975
				Nebraska (1.3%)
	3,760			Nebraska Public Power District, 2003 Ser A (AMBAC Insd)			5.00				01/01/35				3,711,872

PRINCIPAL
AMOUNT IN						COUPON				MATURITY
THOUSANDS						RATE				DATE				VALUE
				Nevada (3.3%)
	5,080			Las Vegas Water District, Impr & Refg Ser 2003 a (FGIC Insd)			5.25				06/01/19				5,242,255
	4,000			Nevada Capital Improvement & Cultural Affairs Ser 2009 C (FSA Insd) (a)			5.00				06/01/26				4,013,993
	975			Nevada Department of Business & Industry, Las Vegas Monorail 1st Tier Ser 2000 (AMBAC Insd)			5.375				01/01/40				195,546
															9,451,794
				New Hampshire (0.4%)
	1,300			New Hampshire Health & Education Facilities Authority, University of New Hampshire Ser 2001 (AMBAC Insd)			5.125				07/01/33				1,276,210
				New Jersey (3.3%)
	1,465			New Jersey Economic Development Authority, School Facilities Construction Ser N-1			5.50				09/01/24				1,585,599
	4,000			New Jersey Transportation Trust Fund Authority, Ser 2005 C (FGIC Insd)			5.25				06/15/20				4,196,000
	7,155			New Jersey Transportation Trust Fund Authority, Ser 2006 C (AGC Insd) (b)			0.00				12/15/26				2,692,355
	1,000			University of Medicine & Dentistry, Ser 2004 (COPs) (NATL-RE Insd)			5.00				06/15/29				917,320
															9,391,274
				New York (12.4%)
	1,670			Hudson Yards Infrastructure Corporation, 2007 Ser A (NATL-RE Insd)			4.50				02/15/47				1,333,261
	3,000			Long Island Power Authority, Refg Ser 2003 C (FSA Insd)			5.00				09/01/28				3,042,990
	4,000			Long Island Power Authority, Ser 2006 A (XLCA Insd)			5.00				12/01/26				4,029,640
	10,000			Metropolitan Transportation Authority, Transportation Refg Ser 2002 A (FGIC Insd)			5.00				11/15/25				10,080,600
	2,000			New York City Industrial Development Agency, Queens Baseball Stadium Ser 2006 (AMBAC Insd)			5.00				01/01/31				1,791,580
	2,500			New York City Industrial Development Agency, Yankee Stadium Ser 2006 (FGIC Insd)			5.00				03/01/46				2,058,300
	1,735			New York City Transitional Finance Authority, 2000 Ser C (AMBAC Insd)			5.25				08/01/21				1,853,709
	1,150			New York State Dormitory Authority, Montefiore Hospital — FHA Insured Mtge Ser 2004 (FGIC Insd)			5.50				05/15/29				1,209,754
	10,000			Triborough Bridge & Tunnel Authority, Refg 2002 E (NATL-RE Insd) (a)			5.25				11/15/22				10,370,652
															35,770,486
				Ohio (0.7%)
	2,545			Cleveland Ohio Public Power System, Ser 2008 B-2 (NATL-RE Insd) (b)			0.00				11/15/26				1,039,963
	1,720			Cleveland Ohio Public Power System, Ser 2008 B-2 (NATL-RE Insd) (b)			0.00				11/15/28				611,150
	425			Ohio State Water Development Authority, Pollution Control Facilities Firstenergy Ser A			5.875				06/01/33				442,106
															2,093,220
				Oregon (1.1%)
	3,000			Oregon Department of Administrative Services, Ser 2005 B (COPs)(FGIC Insd)			5.00				11/01/24				3,087,300
				Pennsylvania (5.7%)
	5,000			Allegheny County Hospital Development Authority, Pittsburgh Mercy Health Ser 1996 (AMBAC Insd) (ETM)			5.625				08/15/18				5,244,550
	2,000			Delaware County Industrial Development Authority, Aqua Inc Ser A 2005 (AMT) (FGIC Insd)			5.00				11/01/37				1,756,240
	1,450			Pennsylvania Turnpike Commission, Ser 2008 Subser A-1 (AGC Insd)			5.00				06/01/25				1,523,428
	875			Philadelphia, Ser 2009 B (AGC Insd)			7.125				07/15/38				961,529
	5,000			Philadelphia, Water & Wastewater Ser 1998 (AMBAC Insd)			5.25				12/15/14				5,459,500
	1,500			The School District of Philadelphia, Ser 2008 E (BHAC Insd)			5.125				09/01/23				1,616,865
															16,562,112
				Puerto Rico (0.5%)
	1,420			Puerto Rico Sales Tax Financing Corporation Ser 2009 A			5.00				08/01/39				1,444,296
				Rhode Island (3.7%)
	10,000			Rhode Island Depositors Economic Protection Corporation, Refg 1992 Ser B (NATL-RE Insd) (ETM)			6.00				08/01/17				10,615,100
				South Carolina (5.5%)
	1,500			Medical University Hospital Authority, FHA Insured Mtge Ser 2004 A (NATL-RE Insd)			5.25				02/15/25				1,525,170
	10,000			South Carolina Public Service Authority, Santee Cooper Ser 2003 A (AMBAC Insd)(a)			5.375				11/01/22				10,245,204
	4,000			South Carolina Public Service Authority, Santee Cooper 2006 Ser A (NATL-RE Insd)			5.00				01/01/36				4,006,360
															15,776,734
				Texas (20.8%)
	3,020			Amarillo Health Facilities Corporation, Baptist St Anthony’s Hospital Ser 1998 (FSA Insd)			5.50				01/01/16				3,254,563
	5,075			Amarillo Health Facilities Corporation, Baptist St Anthony’s Hospital Ser 1998 (FSA Insd)			5.50				01/01/17				5,444,714
	9,000			Dallas-Fort Worth International Airport, Ser 2003 A (AMT) (FSA Insd)(a)			5.375				11/01/22				9,042,480
	1,000			Friendswood Independent School District, Ser 2008 (PSF Gtd)			5.00				02/15/27				1,057,630
	2,160			Harris County Health Facilities Development Corp, Thermal Utility Ser 2008 (AGC Insd)			5.25				11/15/24				2,178,792
	5,435			Houston, Combined Utility First Lien Refg 2004 Ser A (NATL-RE FGIC Insd)			5.25				05/15/23				5,653,596
	4,000			Houston, Public Impr & Refg Ser 2001 B (FSA Insd)			5.50				03/01/17				4,261,360
	1,175			Houston Community College System, Sr Lien Student Fee Ser 2008 (FSA Insd)			5.00				04/15/25				1,238,227
	330			Houston Community College System, Sr Lien Student Fee Ser 2008 (FSA Insd)			5.00				04/15/26				345,385

PRINCIPAL
AMOUNT IN						COUPON				MATURITY
THOUSANDS						RATE				DATE				VALUE
	3,975			Houston Hotel Occupancy, Capital Appreciation Ser 2001 B (FSA Insd) (b)			0.00				09/01/26				1,398,326
	1,550			Humble Independent School District, Unlimited Tax School Building Ser 2008A (AGC Insd)			5.00				02/15/25				1,617,704
	8,575			Lower Colorado River Authority, Refg Ser 1999 A (NATL-RE Insd)			5.00				05/15/31				8,222,825
	5,000			Lower Colorado River Authority, Refg Ser 2001 A (FSA Insd)			5.00				05/15/26				5,051,600
	8,200			North Texas Tollway Authority, First Tier Capital Appreciation Refg Ser 2008D (AGC Insd) (b)			0.00				01/01/28				2,697,062
	1,775			North Texas Tollway Authority, First Tier Capital Appreciation Refg Ser 2008D (AGC Insd) (b)			0.00				01/01/31				470,180
	3,000			San Antonio, Water & Refg Ser 2002 A (FSA Insd)			5.00				05/15/32				3,010,620
	4,000			Texas Turnpike Authority, Central Texas Ser 2002 A (AMBAC Insd)			5.50				08/15/39				3,651,240
	1,510			Victoria Independent School District, Unlimited Tax School Building Ser 2008 (PSF Gtd)			5.00				02/15/24				1,635,104
															60,231,406
				Utah (1.8%)
	5,000			Intermountain Power Agency, Utah, 2003 Ser A (FSA Insd)			5.00				07/01/21				5,305,250
				Virginia (1.1%)
	3,000			Richmond Metropolitan Authority, Refg Ser 2002 (FGIC Insd)			5.25				07/15/22				3,196,230
				Washington (13.3%)
	6,000			Cowlitz County, Public Utility District # 1, Production Ser 2006 (NATL-RE Insd)			5.00				09/01/31				5,707,140
	3,000			King County, Sewer Refg 2001 (FGIC Insd)			5.00				01/01/31				3,008,670
	4,455			Port of Seattle, Passenger Facility Ser 1998 A (NATL-RE Insd)			5.00				12/01/23				4,409,782
	5,000			Port of Seattle, Ser 2001 B (AMT) (NATL-RE Insd)			5.625				02/01/24				5,009,350
	2,890			Seattle, Water Refg 2003 (NATL-RE Insd)			5.00				09/01/20				3,018,258
	2,870			Seattle, Water Refg 2003 (NATL-RE Insd)			5.00				09/01/23				2,964,136
	2,500			Spokane School District #81, Ser 2005 (NATL-RE Insd)			5.125				12/01/23				2,658,675
	4,300			Washington State Motor Vehicle Fuel Tax, Ser 2004F (AMBAC Insd)			0.00				12/01/29				1,494,078
	2,000			Washington State Health Care Facilities Authority, Kadlec Medical Center Ser 2006 A (AGC Insd)			5.00				12/01/30				1,887,160
	3,895			Washington Various Purposes Ser 2010 A			5.00				08/01/29				4,062,587
	4,095			Washington Various Purposes Ser 2010 A			5.00				08/01/30				4,271,192
															38,491,028
				West Virginia (1.0%)
	2,900			West Virginia Water Development Authority, Loan Program II Refg Ser 2003 B (AMBAC Insd)			5.25				11/01/23				2,999,122
				Total Tax-Exempt Municipal Bonds (Cost $464,090,641)											457,236,348
NUMBER OF
SHARES (000)
				Short-Term Investment (e) (0.1%)
				Investment Company
	191			Morgan Stanley Institutional Liquidity FundsTax-Exempt Portfolio — Institutional Class (Cost $191,436)											191,436
				Total Investments (Cost $464,282,077)(g)(h)			158.2	%							457,427,784
				Other Assets in Excess of Liabilites			2.7								7,800,718
PRINCIPAL
AMOUNT IN
THOUSANDS
				Floating Rate Note Obligations Related to Securities Held
	(67,220	)		Notes with interest rates ranging from 0.56% to 1.38% at July 31, 2009 and contractual maturities of collateral ranging from 11/01/22 to 10/01/37 (f) (Cost $(67,220,000))			(23.3	)							(67,220,000	)
				Preferred Shares of Beneficial Interest			(37.6	)							(108,850,000	)
				Net Assets Applicable to Common Shareholders			100.0	%						$	289,158,501

Bond insurance:

AGC AMBAC BHAC FGIC FSA NATL-RE PSF XLCA		Assured Guaranty Corporation. AMBAC Assurance Corporation. Berkshire Hathaway Assurance Corporation. Financial Guaranty Insurance Company. Financial Security Assurance Inc. National Public Finance GuaranteeCorporation. Texas Permanent School Fund Guarantee Program. XL Capital Assurance Inc.

Morgan Stanley Insured Municipal Income Trust
FUTURES CONTRACTS OPEN AT JULY 31, 2009

														UNREALIZED
NUMBER OF								DESCRIPTION, DELIVERY		UNDERLYING FACE				APPRECIATION
CONTRACTS				LONG/SHORT				MONTH AND YEAR		AMOUNT AT VALUE				(DEPRECIATION)
	242			Long				U.S. Treasury Notes 20 Year September 2009		$	28,382,063			$	728,567
	6			Short				U.S. Treasury Notes 2 Year September 2009			(1,299,469	)			(748	)
	40			Short				U.S. Treasury Notes 5 Year September 2009			(4,615,312	)			(9,330	)
	220			Short				U.S. Treasury Bonds 30 Year September 2009			(22,610,000	)			(418,771	)
								Net Unrealized Appreciation						$	299,718

Morgan Stanley Insured Municipal Income Trust
Notes to the Portfolio of Investments
SFAS 157 Disclosure
7/31/2009

The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), effective November 1, 2008. In accordance with SFAS 157, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. SFAS 157 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed baed on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund’s investments. The inputs are summarized in the three broad levels listed below.

Level 1 — unadjusted quoted prices in active markets for identical investments

Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each security.

The following is a summary of the inputs used as of July 31, 2009 in valuing the Fund’s investments carried at value:

		Fair Value Measurements at July 31, 2009 Using
						Unadjusted
						Quoted Prices In				Significant				Significant
						Active Market for				Other Observable				Unobservable
						Identical Investments				Inputs				Inputs
Investment Type		Total				(Level 1)				(Level 2)				(Level 3)
Assets
Tax-Exempt Municipal Bonds		$	457,236,348				—			$	457,236,348				—
Short-Term Investment — Investment Company			191,436			$	191,436				—				—
Futures			728,567				728,567				—				—
Total		$	458,156,351			$	920,003			$	457,236,348				—
Liabilities
Futures			($428,849	)			($428,849	)			—				—

Valuation of Investments — (1) portfolio securities are valued by an outside independent pricing service approved by the Trustees. The pricing service uses both a computerized grid matrix of tax-exempt securities and and evaluations by its staff, in each case based on information concerning market transactions and quotations from dealers which reflect the mean between the last reported bid and asked price. The portfolio securities are thus valued by reference to a combination of transactions and quotations for the same or other securities believed to be comparable in quality, coupon, maturity, type of issue, call provisions, trading characteristics and other features deemed to be relevant. The Trustees believe that timely and reliable market quotations are generally not readily available for purposes of valuing tax-exempt securities and that the valuations supplied by the pricing service are more likely to approximate the fair value of such securities; (2) futures are valued at the latest sale price on the commodities exchange on which they trade unless it is determined that such price does not reflect their market value, in which case they will be valued at their fair value as determined in good faith under procedures established by and under the supervision of the Trustees; (3) interest rate swaps are marked-to-market daily based upon quotations from market makers; (4) short-term debt securities having a maturity date of more than sixty days at time of purchase are valued on a mark-to-market basis until sixty days prior to maturity and thereafter at amortized cost based on their value on the 61st day. Short-term debt securities having a maturity date of sixty days or less at the time of purchase are valued at amortized cost, which approximates market value.

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.

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.

September 17, 2009

     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.

September 17, 2009

September 17, 2009