nvq
 
 
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)
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, 2010
Date of reporting period: January 31, 2010
 
 
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, 2010 (unaudited)
                                 
PRINCIPAL                        
AMOUNT IN         COUPON     MATURITY        
THOUSANDS         RATE     DATE     VALUE  
 
       
Tax-Exempt Municipal Bonds (148.1%)
                        
       
Arizona (2.0%)
                        
$ 2,000    
Arizona State University, Research Infrastructure Projects (COPs) (AMBAC Insd)
     5.00 %     09/01/30     $ 2,025,240  
  550    
Maricopa County Pollution Control Corp., Arizona Public Service Co. Ser 2009 A
     6.00       05/01/29       578,842  
  1,000    
Phoenix Civic Improvement Corp., Jr Lien Wastewater Ser 2004 (NATL-RE Insd)
     5.00       07/01/27       1,027,070  
  1,305    
State of Arizona, Ser 2008 A (COPs) (AGM Insd)
     5.00       09/01/27       1,346,094  
       
 
                      
       
 
                     4,977,246  
       
 
                      
       
California (25.3%)
                        
  1,205    
Alameda County Joint Powers Authority, Ser 2008 (AGM Insd)
     5.00       12/01/24       1,275,360  
  1,355    
Alhambra Unified School District, Ser 2009 B (AGC Insd) (a)
     0.00       08/01/35       267,057  
  2,190    
Alhambra Unified School District, Ser 2009 B (AGC Insd) (a)
     0.00       08/01/36       402,938  
  945    
Alvord Unified School District, Election of 2007 Ser 2007 A (AGM Insd)
     5.00       08/01/27       975,391  
  16,000    
Anaheim Public Financing Authority, Electric Ser 2007-A (NATL-RE Insd) (b)
     4.50       10/01/37       14,674,960  
  960    
Beverly Hills Unified School District, Election of 2008 Ser 2009 (a)
     0.00       08/01/26       410,755  
  1,850    
Beverly Hills Unified School District, Election of 2008 Ser 2009 (a)
     0.00       08/01/31       570,004  
  2,500    
California State Department of Water Resources, Power Supply Ser 2008 H (AGM Insd)
     5.00       05/01/22       2,714,975  
  2,000    
City & County of San Francisco, City Buildings Ser 2007 A (COPs) (NATL-RE & FGIC Insd)
     4.50       09/01/37       1,798,700  
  1,000    
City & County of San Francisco, Refg Laguna Honda Hospital Ser 2008 R-3 (AGC Insd) (b)
     5.00       06/15/28       1,024,230  
  3,000    
City of Los Angeles, Ser 2004 A (NATL-RE Insd)
     5.00       09/01/24       3,202,800  
  480    
Clovis Unified School District, Election of 2004 Ser A (NATL-RE & FGIC Insd) (a)
     0.00       08/01/29       146,990  
  1,090    
Dry Creek Joint Elementary School District, Election 2008 Ser 2009 E (a)
     0.00       08/01/44       105,981  
  6,270    
Dry Creek Joint Elementary School District, Election 2008 Ser 2009 E (a)
     0.00       08/01/45       567,811  
  4,610    
Dry Creek Joint Elementary School District, Election 2008 Ser 2009 E (a)
     0.00       08/01/48       337,544  
  4,000    
Eastern Municipal Water District, Water & Sewer Refg, Ser 2006 A (COPs) (NATL-RE Insd)
     5.00       07/01/32       4,034,800  
  2,705    
El Segundo Unified School District, Election of 2008 Ser 2009 A (a)
     0.00       08/01/32       653,853  
  4,530    
Fontana Unified School District, Ser B (AGM Insd) (a)
     0.00       08/01/30       1,234,878  
  6,000    
Golden State Tobacco Securitization Corp., Enhanced Asset Backed Ser 2005 A (FGIC Insd)
     5.00       06/01/38       5,179,500  
  2,000    
Kern County Board of Education, Refg Ser 2006 A (COPs) (NATL-RE Insd)
     5.00       06/01/31       2,007,400  
  1,450    
Menifee Union School District, Election of 2008 Ser C (AGC Insd) (a)
     0.00       08/01/37       244,992  
  1,505    
Moreland School District, Ser 2014 C (AMBAC Insd) (a)
     0.00       08/01/29       439,520  
  1,080    
Oak Grove School District, Election 2008 Ser A (a)
     0.00       08/01/28       347,652  
  500    
Oakland Joint Powers Financing Authority, Oakland Administration Buildings 2008 Ser B (AGC Insd)
     5.00       08/01/25       516,435  
  725    
Oakland Joint Powers Financing Authority, Oakland Administration Buildings, Ser 2008 B (AGC Insd)
     5.00       08/01/23       758,415  

 

 

Morgan Stanley Insured Municipal Trust*
Portfolio of Investments § January 31, 2010 (unaudited) continued
                                 
PRINCIPAL                        
AMOUNT IN         COUPON     MATURITY        
THOUSANDS         RATE     DATE     VALUE  
 
$ 5,700    
Patterson Joint Unified School District, 2008 Election Ser 2009 B (AGM Insd) (a)
     0.00 %     08/01/47     $ 489,060  
  7,670    
Patterson Joint Unified School District, 2008 Election Ser 2009 B (AGM Insd) (a)
     0.00       08/01/48       614,060  
  4,240    
Patterson Joint Unified School District, Election of 2008 Ser 2009 B (AGM Insd) (a)
     0.00       03/01/49       325,971  
  110    
Port of Oakland, Ser 2002 L (AMT) (NATL-RE & FGIC Insd)
     5.00       11/01/12  (c)     122,473  
  890    
Port of Oakland, Ser 2002 L (AMT) (NATL-RE & FGIC Insd)
     5.00       11/01/21       870,821  
  3,210    
Poway Unified School District, School Facilities Improvement District No. 2007-1, 2008 Election Ser A (a)
     0.00       08/01/28       1,033,299  
  3,470    
Poway Unified School District, School Facilities Improvement District No. 2007-1, 2008 Election Ser A (a)
     0.00       08/01/31       893,386  
  27,055    
San Bernardino Community College District, Ser 2009 B (a)
     0.00       08/01/48       2,002,341  
  5,000    
San Diego County Water Authority, Ser 2004 A (COPs) (AGM Insd) (b)
     5.00       05/01/29       5,139,075  
  615    
San Rafael City High School District, Election Ser 2002 B (NATL-RE & FGIC Insd) (a)
     0.00       08/01/25       251,154  
  1,000    
University of California, Limited Projects Ser 2005 B (AGM Insd)
     5.00       05/15/30       1,012,640  
  3,310    
University of California, Ser 2007-J (AGM Insd) (b)
     4.50       05/15/31       3,258,783  
  2,690    
University of California, Ser 2007-J (AGM Insd) (b)
     4.50       05/15/35       2,585,735  
       
 
                      
       
 
                     62,491,739  
       
 
                      
       
Colorado (3.3%)
                        
  2,000    
Arkansas River Power Authority, Power Ser 2006 (XLCA Insd)
     5.25       10/01/40       1,770,280  
  5,000    
City & County of Denver, Airport Refg Ser 2000 A (AMT) (AMBAC Insd)
     6.00       11/15/18       5,140,600  
  1,500    
Denver Convention Center Hotel Authority, Refg Ser 2006 (XLCA Insd)
     5.00       12/01/35       1,226,445  
       
 
                      
       
 
                     8,137,325  
       
 
                      
       
Connecticut (0.5%)
                        
  1,225    
Connecticut State Health & Educational Facility Authority, Quinnipiac University Ser K-1 (NATL-RE Insd)
     5.00       07/01/27       1,277,969  
       
 
                      
       
District of Columbia (6.3%)
                        
  2,100    
District of Columbia, Income Tax, Ser 2009 A (b)
     5.25       12/01/27       2,316,167  
  2,000    
District of Columbia, Ser 2008 E (BHAC Insd) (b)
     5.00       06/01/26       2,120,464  
  2,000    
District of Columbia, Ser 2008 E (BHAC Insd) (b)
     5.00       06/01/27       2,120,464  
  4,000    
District of Columbia, Ser 2008 E (BHAC Insd) (b)
     5.00       06/01/28       4,240,929  
  4,000    
District of Columbia Ballpark, Ser 2006 B-1 (NATL-RE & FGIC Insd)
     5.00       02/01/31       3,627,800  
  500    
District of Columbia Water & Sewer Authority, Refg Sub-Lien Ser 2008 A (AGC Insd)
     5.00       10/01/28       519,940  
  625    
District of Columbia Water & Sewer Authority, Refg Sub-Lien Ser 2008 A (AGC Insd)
     5.00       10/01/29       644,475  
       
 
                      
       
 
                     15,590,239  
       
 
                      
       
Florida (7.8%)
                        
  1,000    
City of Port St Lucie, Utility System Refg Ser 2009 (AGC Insd)
     5.00       09/01/29       1,011,790  
  1,000    
County of Miami-Dade, Building Better Communities Program Ser 2009 B-1
     6.00       07/01/38       1,104,150  
  2,155    
County of Miami-Dade, Miami Int’l Airport Refg Ser 2003 B (AMT) (NATL-RE Insd)
     5.25       10/01/18       2,205,923  
  2,270    
County of Miami-Dade, Miami Int’l Airport Refg Ser 2003 B (AMT) (NATL-RE Insd)
     5.25       10/01/19       2,311,654  

 

 

Morgan Stanley Insured Municipal Trust*
Portfolio of Investments § January 31, 2010 (unaudited) continued
                                 
PRINCIPAL                        
AMOUNT IN         COUPON     MATURITY        
THOUSANDS         RATE     DATE     VALUE  
 
$ 1,500    
Miami-Dade County Educational Facilities Authority, University of Miami Ser 2008 A (CR) (BHAC Insd)
     5.50 %     04/01/38     $ 1,558,650  
  1,265    
Mid-Bay Bridge Authority, Refg Ser 2008 A (AGC Insd)
     5.00       10/01/27       1,336,903  
  1,200    
Palm Beach County Solid Waste Authority, Ser 2009 (BHAC Insd)
     5.50       10/01/23       1,353,084  
  6,000    
Tampa Bay Water Utility System Revenue, Ser 2001 B (NATL-RE & FGIC Insd)
     5.00       10/01/31       6,040,680  
  2,185    
Tampa Sports Authority, Sales Tax Refg Ser 2005 (AGM Insd)
     5.00       01/01/26       2,256,034  
       
 
                      
       
 
                     19,178,868  
       
 
                      
       
Georgia (3.2%)
                        
  5,000    
City of Atlanta, Airport Passenger Facilities Sub-Lien Ser 2004 C (AGM Insd) (b)
     5.00       01/01/33       5,041,100  
  2,000    
City of Atlanta, Water & Wastewater Ser 1999 A (NATL-RE & FGIC Insd)
     5.00       11/01/29       1,950,820  
  900    
Fulton County Development Authority, Morehouse College Ser 2000 (AMBAC Insd)
     6.25       12/01/10  (c)     953,577  
       
 
                      
       
 
                     7,945,497  
       
 
                      
       
Hawaii (6.3%)
                        
  5,000    
City & County of Honolulu, Ser 2003 A (NATL-RE Insd) (b)
     5.25       03/01/25       5,414,850  
  5,000    
City & County of Honolulu, Ser 2003 A (NATL-RE Insd) (b)
     5.25       03/01/26       5,244,950  
  5,000    
State of Hawaii, Airports Refg Ser 2001 (AMT) (NATL-RE & FGIC Insd)
     5.25       07/01/21       5,031,750  
       
 
                      
       
 
                     15,691,550  
       
 
                      
       
Idaho (0.9%)
                        
  2,065    
Idaho Housing & Finance Association, Federal Highway Trust Ser 2008 A (RANs) (AGC Insd)
     5.25       07/15/25       2,252,585  
       
 
                      
       
Illinois (20.4%)
                        
  1,370    
Chicago Transit Authority, Federal Transit Administration Section 5309 Ser 2008 (AGC Insd)
     5.25       06/01/26       1,451,446  
  2,000    
City of Chicago, O’ Hare Int’l Airport Third Lien Ser 2003 B-2 (AMT) (AGM Insd)
     5.75       01/01/23       2,065,660  
  6,070    
City of Chicago, Project & Refg Ser 2007 A (FGIC & AGM Insd) (CR) (b)(d)
     5.00       01/01/37       6,105,053  
  940    
City of Chicago, Second Lien Water Ser 2008 (AGM Insd)
     5.00       11/01/27       990,328  
  2,000    
City of Chicago, Ser A 2001 (NATL-RE Insd) (e)
     0.00       01/01/21       2,074,460  
  2,000    
City of Chicago, Ser A 2001 (NATL-RE Insd) (e)
     0.00       01/01/22       2,065,200  
  3,000    
City of Chicago, Ser A 2005 (NATL-RE Insd)
     5.25       01/01/25       3,111,000  
  670    
De Kalb County Community Unit School District No. 428, (AGM Insd)
     5.00       01/01/27       706,709  
  305    
De Kalb County Community Unit School District No. 428 (AGM Insd)
     5.00       01/01/28       320,241  
  1,635    
Illinois Finance Authority, Northwestern Memorial Hospital, Ser 2009 B
     5.75       08/15/30       1,789,475  
  5,375    
Kendall Kane & Will Counties Community Unit School District No. 308 (AGM Insd) (a)
     0.00       02/01/27       2,221,434  
  4,000    
Regional Transportation Authority, Refg Ser 1999 (AGM Insd)
     5.75       06/01/21       4,774,880  
  10,000    
State of Illinois, Ser 2001 (NATL-RE Insd) (b)
     5.375       04/01/15       11,378,600  
  10,000    
State of Illinois, Ser 2001 (NATL-RE Insd) (b)
     5.375       04/01/16       11,378,600  
       
 
                      
       
 
                     50,433,086  
       
 
                      
       
Iowa (4.2%)
                        
  1,810    
State of Iowa, IJOBS Program Ser 2009 A (b)(d)
     5.00       06/01/25       1,965,928  
  1,355    
State of Iowa, IJOBS Program Ser 2009 A (b)(d)
     5.00       06/01/26       1,462,784  
  3,600    
State of Iowa, Ser 2001 (NATL-RE Insd)
     5.50       02/15/19       4,174,884  

 

 

Morgan Stanley Insured Municipal Trust*
Portfolio of Investments § January 31, 2010 (unaudited) continued
                                 
PRINCIPAL                        
AMOUNT IN         COUPON     MATURITY        
THOUSANDS         RATE     DATE     VALUE  
 
$ 2,500    
State of Iowa, Ser 2001 (NATL-RE Insd)
     5.50 %     02/15/20     $ 2,882,550  
       
 
                      
       
 
                     10,486,146  
       
 
                      
       
Kansas (0.7%)
                        
  615    
Kansas Development Finance Authority Hospital Revenue, Adventist Health System Sunbelt Obligated Group Ser 2009 C
     5.50       11/15/29       648,770  
  1,060    
Wyandotte County-Kansas City Unified Government, Utility System Improvement, Ser 2009 A (BHAC Insd)
     5.25       09/01/34       1,112,268  
       
 
                      
       
 
                     1,761,038  
       
 
                      
       
Kentucky (2.3%)
                        
  1,640    
Kentucky State Property & Buildings Commission, Refg. Project No. 93 Ser 2009 (AGC Insd)
     5.25       02/01/28       1,771,840  
  3,800    
Louisville Waterworks Board, Ser 2000 (AGM Insd)
     5.50       11/15/10  (c)     3,875,962  
       
 
                      
       
 
                     5,647,802  
       
 
                      
       
Louisiana (0.6%)
                        
  1,500    
Louisiana Public Facilities Authority, Baton Rouge General Medical Center-FHA Insured Mtge Ser 2004 (NATL-RE Insd)
     5.25       07/01/33       1,483,980  
       
 
                      
       
Maryland (1.0%)
                        
  2,500    
Maryland Economic Development Corp., Aviation Administration Ser 2003 (AMT) (AGM Insd)
     5.375       06/01/22       2,565,075  
       
 
                      
       
Massachusetts (5.7%)
                        
  2,000    
Massachusetts Health & Educational Facilities Authority, Boston College Ser M-2
     5.50       06/01/30       2,362,220  
  6,460    
Massachusetts Health & Educational Facilities Authority, Harvard University Ser A (b)
     5.50       11/15/36       7,168,468  
  2,090    
Massachusetts Health & Educational Facilities Authority, Massachusetts Institute of Technology Ser O (b)
     5.50       07/01/36       2,320,307  
  2,000    
Massachusetts Water Resources Authority, Ser 2007 B (AGM Insd)
     5.25       08/01/31       2,267,900  
       
 
                      
       
 
                     14,118,895  
       
 
                      
       
Michigan (2.0%)
                        
  1,200    
City of Detroit Water Supply System, Refg Ser 2006 C (AGM Insd)
     5.00       07/01/26       1,210,440  
  850    
Ferris State University, Refg Ser 2008 (AGM Insd)
     4.50       10/01/24       864,926  
  425    
Ferris State University, Refg Ser 2008 (AGM Insd)
     4.50       10/01/25       430,215  
  1,190    
Wayne State University, Refg Ser 2008 (AGM Insd)
     5.00       11/15/29       1,240,646  
  1,125    
Western Michigan University, Ser 2008 (AGM Insd)
     5.00       11/15/23       1,201,466  
       
 
                      
       
 
                     4,947,693  
       
 
                      
       
Minnesota (1.6%)
                        
  4,000    
City of Minneapolis, Fairview Health Ser 2005 D (AMBAC Insd)
     5.00       11/15/34       3,851,160  
       
 
                      
       
Missouri (0.8%)
                        
  2,000    
Missouri Joint Municipal Electric Utility Commission, Plum Point Ser 2006 (NATL-RE Insd)
     5.00       01/01/25       1,977,140  
       
 
                      
       
Nevada (5.5%)
                        
  4,000    
County of Clark, Transportation Improvement Ltd. Tax Ser 1992 B (AMBAC Insd)
     6.50       06/01/17       4,871,120  
  1,500    
Director of the State of Nevada, Department of Business & Industry, Las Vegas Monorail 1st Tier Ser 2000 (AMBAC Insd) (a)
     0.00       01/01/21       294,960  
  8,000    
State of Nevada, Capital Improvement & Cultural Affairs Ser 2008 C (AGM Insd) (b)
     5.00       06/01/26       8,355,759  
       
 
                      
       
 
                     13,521,839  
       
 
                      

 

 

Morgan Stanley Insured Municipal Trust*
Portfolio of Investments § January 31, 2010 (unaudited) continued
                                 
PRINCIPAL                        
AMOUNT IN         COUPON     MATURITY        
THOUSANDS         RATE     DATE     VALUE  
 
       
New Jersey (3.8%)
                        
$ 1,195    
New Jersey Economic Development Authority, School Facilities Construction Ser N-1 (AMBAC Insd)
     5.50 %     09/01/24     $ 1,351,939  
  510    
New Jersey Educational Facilities Authority, Rowan University Ser 2008 B (AGC Insd)
     5.00       07/01/26       548,036  
  2,535    
New Jersey St Housing & Mortgage Finance Agency, Home Buyer Ser 2000 CC (AMT) (NATL-RE Insd)
     5.875       10/01/31       2,547,269  
  2,500    
New Jersey State Turnpike Authority, Ser 2003 A (AMBAC Insd)
     5.00       01/01/30       2,540,725  
  5,860    
New Jersey Transportation Trust Fund Authority, Ser 2006 C (AGC Insd) (a)
     0.00       12/15/26       2,439,225  
       
 
                      
       
 
                     9,427,194  
       
 
                      
       
New Mexico (0.6%)
                        
  1,500    
City of Albuquerque, Gross Receipts Lodgers’ Tax Refg Ser 2004 A (AGM Insd)
     5.00       07/01/37       1,524,900  
       
 
                      
       
New York (13.3%)
                        
  6,805    
Metropolitan Transportation Authority, State Service Contract Refg Ser 2002 B (NATL-RE Insd)
     5.50       07/01/20       7,337,627  
  10,000    
Metropolitan Transportation Authority, Transportation Refg Ser 2002 A (AMBAC Insd)
     5.50       11/15/17       10,849,000  
  2,000    
Metropolitan Transportation Authority, Transportation Refg Ser 2002 A (NATL-RE & FGIC Insd)
     5.00       11/15/25       2,062,420  
  1,000    
New York City Industrial Development Agency, Queens Baseball Stadium Ser 2006 (AMBAC Insd)
     5.00       01/01/31       953,790  
  2,000    
New York City Industrial Development Agency, Yankee Stadium Ser 2006 (FGIC Insd)
     5.00       03/01/46       1,808,820  
  2,000    
New York State Dormitory Authority, Montefiore Hospital — FHA Insured Mtge Ser 2004 (NATL-RE & FGIC Insd)
     5.00       08/01/29       2,043,480  
  940    
New York State Dormitory Authority, New York University (AMBAC Insd)
     5.50       05/15/29       1,023,359  
  5,000    
New York State Energy Research & Development Authority, Brooklyn Union Gas Co. Ser 1996 (NATL-RE Insd)
     5.50       01/01/21       5,017,000  
  1,725    
New York State Thruway Authority, Personal Income Tax Transportation Ser 2009 A
     5.00       03/15/25       1,883,045  
       
 
                      
       
 
                     32,978,541  
       
 
                      
       
Ohio (0.8%)
                        
  2,125    
City of Cleveland, Public Power Ser 2008 B-1 (NATL-RE Insd) (a)
     0.00       11/15/28       856,460  
  2,800    
City of Cleveland, Public Power Ser 2008 B-1 (NATL-RE Insd) (a)
     0.00       11/15/38       618,436  
  350    
Ohio State Water Development Authority, Ser 2009 A
     5.875       06/01/33       381,150  
       
 
                      
       
 
                     1,856,046  
       
 
                      
       
Oregon (0.7%)
                        
  1,685    
Oregon State Department of Administrative Services, Ser 2005 B (COPs) (NATL-RE & FGIC Insd)
     5.00       11/01/24       1,760,185  
       
 
                      
       
Pennsylvania (4.2%)
                        
  720    
City of Philadelphia, Ser 2009 B (AGC Insd)
     7.125       07/15/38       811,605  
  1,500    
Delaware County Industrial Development Authority, Ser 2005 A (AMT) (NATL-RE & FGIC Insd)
     5.00       11/01/37       1,395,765  
  3,000    
Pennsylvania Turnpike Commission, Ser 2001 R (AMBAC Insd)
     5.00       12/01/26       3,033,180  

 

 

Morgan Stanley Insured Municipal Trust*
Portfolio of Investments § January 31, 2010 (unaudited) continued
                                 
PRINCIPAL                        
AMOUNT IN         COUPON     MATURITY        
THOUSANDS         RATE     DATE     VALUE  
 
$ 4,000    
Pennsylvania Turnpike Commission, Ser 2004 A (AMBAC Insd)
     5.00 %     12/01/34     $ 4,013,360  
  1,000    
Philadelphia School District, Ser 2008 E (BHAC Insd)
     5.125       09/01/23       1,089,180  
       
 
                      
       
 
                     10,343,090  
       
 
                      
       
Puerto Rico (0.5%)
                        
  1,160    
Puerto Rico Sales Tax Financing Corp., Ser 2009 A
     5.00       08/01/39       1,218,441  
       
 
                      
       
South Carolina (1.3%)
                        
  1,000    
Medical University Hospital Authority, Mtge Ser 2004 A (NATL-RE & AGM Insd)
     5.25       02/15/25       1,035,890  
  2,000    
South Carolina State Public Service Authority, Santee Cooper Ser 2003 A (AMBAC Insd) (b)
     5.00       01/01/27       2,097,716  
       
 
                      
       
 
                     3,133,606  
       
 
                      
       
Texas (11.7%)
                        
  10,000    
City of Austin, Water & Wastewater Refg Ser 2001 A & B (AGM Insd) (b)
     5.125       05/15/27       10,213,214  
  4,465    
City of Houston, Combined Utility First Lien Refg 2004 Ser A (NATL-RE & FGIC Insd)
     5.25       05/15/23       4,714,147  
  3,615    
City of Houston, Ser 2001 B (CR) (AGM & AMBAC Insd) (a)
     0.00       09/01/27       1,370,772  
  2,000    
City of San Antonio, Water & Refg Ser 2002 A (AGM Insd)
     5.00       05/15/32       2,021,440  
  800    
Friendswood Independent School District, Schoolhouse Ser 2008 (PSF-GTD)
     5.00       02/15/27       866,280  
  1,840    
Harris County Health Facilities Development Corp., Thermal Utility, Ser 2008 (AGC Insd)
     5.00       11/15/27       1,906,093  
  225    
Houston Community College System, Senior Lien Student Fee Ser 2008 (AGM Insd)
     4.50       04/15/27       226,831  
  1,000    
Houston Community College System, Senior Lien Student Fee Ser 2008 (AGM Insd)
     5.00       04/15/26       1,061,430  
  6,700    
North Texas Tollway Authority, Refg Ser 2008 D (AGC Insd) (a)
     0.00       01/01/28       2,413,072  
  1,455    
North Texas Tollway Authority, Refg Ser 2008 D (AGC Insd) (a)
     0.00       01/01/31       429,298  
  5,735    
Texas State Turnpike Authority, First Tier Ser 2002 (CR) (BHAC & AMBAC Insd) (a)
     0.00       08/15/27       2,358,232  
  410    
Victoria Independent School District, Ser 2008 (PSF-GTD)
     5.00       02/15/24       451,369  
  815    
Victoria Independent School District, Ser 2008 (PSF-GTD)
     5.00       02/15/25       891,325  
       
 
                      
       
 
                     28,923,503  
       
 
                      
       
Washington (10.0%)
                        
  5,000    
City of Seattle (AGM Insd)
     5.125       03/01/26       5,166,850  
  3,000    
County of King, Sewer Refg 2001 (NATL-RE & FGIC Insd)
     5.00       01/01/31       3,039,630  
  3,000    
Cowlitz County Public Utility District No. 1, Production Ser 2006 (NATL-RE Insd)
     5.00       09/01/31       3,030,060  
  4,010    
Port of Seattle, Passenger Facility Ser 1998 A (NATL-RE Insd)
     5.00       12/01/23       4,019,905  
  2,500    
Port of Seattle, Ser 2000 B (AMT) (NATL-RE Insd)
     5.625       02/01/24       2,507,950  
  3,170    
State of Washington, Various Purpose Ser 2010 A (b)
     5.00       08/01/29       3,385,661  
  3,335    
State of Washington, Various Purpose Ser 2010 A (b)
     5.00       08/01/30       3,561,887  
       
 
                      
       
 
                     24,711,943  
       
 
                      
       
Wisconsin (0.8%)
                        
  1,900    
State of Wisconsin, Ser 2009 A
     5.625       05/01/28       2,098,056  
       
 
                      
       
Total Tax-Exempt Municipal Bonds (Cost $358,997,530)
                     366,312,377  
       
 
                      

 

 

Morgan Stanley Insured Municipal Trust*
Portfolio of Investments § January 31, 2010 (unaudited) continued
                                 
NUMBER OF         COUPON     MATURITY        
SHARES (000)         RATE     DATE     VALUE  
 
       
Short-Term Investment (f) (6.9%)
                        
       
Investment Company
                        
  17,070    
Morgan Stanley Institutional Liquidity Funds — Tax Exempt Portfolio — Institutional Class (Cost $17,069,611)
                   $ 17,069,611  
       
 
                      
       
Total Investments (Cost $376,067,141) (g)(h)
     155.0 %             383,381,988  
       
Other Assets in Excess of Liabilities
     1.5               3,784,348  
       
Floating Rate Note and Dealer Trusts Obligations Related to Securities Held
                        
       
Notes with interest rates ranging from 0.18% to 0.50% at January 31, 2010 and contractual maturities of collateral ranging from 04/01/15 to 10/01/37. (i)
     (30.2 )             (74,735,000 )
       
Preferred Shares of Beneficial Interest
     (26.3 )             (65,050,000 )
       
 
                    
       
Net Assets Applicable to Common Shareholders
     100.0 %           $ 247,381,336  
       
 
                    
 
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.
 
CR   Custodial Receipts.
 
FHA   Federal Housing Administration.
 
PSF   Texas Permanent School Fund Guarantee Program.
 
RANs   Revenue Anticipation Notes.
 
(a)   Capital appreciation bond.
 
(b)   Underlying security related to inverse floater entered into by the Trust.
 
(c)   Prefunded to call date shown.
 
(d)   Security is subject to a shortfall agreement which may require the Trust to pay amounts to a counterparty in the event of a significant decline in the market value of the security underlying the inverse floater. In case of a shortfall, the maximum potential amount of payments the Trust could ultimately be required to make under the agreement is $4,640,000. However, such shortfall payment would be reduced by the proceeds from the sale of the security underlying the inverse floater.
 
(e)   Security is a “step-up” bond where the coupon increases on a predetermined future date.
 
(f)   The Trust invests in Morgan Stanley Institutional Liquidity Funds — 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 service fees paid by Morgan Stanley Institutional Liquidity Funds — Tax Exempt Portfolio — Institutional Class with respect to assets invested by the Trust in Morgan Stanley Institutional Liquidity Funds — Tax Exempt Portfolio — Institutional Class.
 
(g)   Securities have been designated as collateral in connection with inverse floating rate municipal obligations.
 
(h)   The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes.
 
(i)   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, 2010, Trust investments with a value of $122,575,684 are held by the Dealer Trusts and serve as collateral for the $74,735,000 in floating rate note obligations outstanding at that date.
 
Bond Insurance:
 
AGC   Assured Guaranty Corporation.
 
AGM   Assured Guaranty Municipal Corporation.
 
AMBAC   AMBAC Assurance Corporation.
 
BHAC   Berkshire Hathaway Assurance Corporation.
 
FGIC   Financial Guaranty Insurance Company.
 
NATL-RE   National Public Finance Guarantee Corporation.
 
XLCA   XL Capital Assurance Inc.

 

 

Morgan Stanley Insured Municipal Trust*
Notes to the Portfolio of Investments § January 31, 2010 (unaudited)
Fair Valuation Measurements
Fair value is defined as the price that the Trust 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. GAAP utilizes 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 based 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 Trust’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 Trust’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 the summary of the inputs used as of January 31, 2010 in valuing the Trust’s investments carried at fair value:
                                 
    FAIR VALUE MEASUREMENTS AT JANUARY 31, 2010 USING  
            UNADJUSTED              
            QUOTED PRICES IN              
            ACTIVE MARKET     OTHER        
            FOR     SIGNIFICANT     SIGNIFICANT  
            IDENTICAL     OBSERVABLE     UNOBSERVABLE  
            INVESTMENTS     INPUTS     INPUTS  
INVESTMENT TYPE   TOTAL     (LEVEL 1)     (LEVEL 2)     (LEVEL 3)  
 
Tax-Exempt Municipal Bonds
   $ 366,312,377       —     $ 366,312,377       —  
Short-Term Investment — Investment Company
     17,069,611     $ 17,069,611       —       —  
 
                        
Total
   $ 383,381,988     $ 17,069,611     $ 366,312,377       —  
                         
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 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 ask 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 represent 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) investments in open-end mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value as of the close of each business day; and (5) 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.
 
*   Morgan Stanley announced on October 19, 2009 that it has entered into a definitive agreement to sell substantially all of its retail asset management business to Invesco Ltd. (“Invesco”), a leading global investment management company. The Trustees of the Trust approved an Agreement and Plan of Reorganization (the “Plan”). Pursuant to the Plan, substantially all of the assets of the Trust would be combined with those of a newly organized mutual fund advised by an affiliate of Invesco Ltd. (the “New Trust”). Pursuant to the Plan, shareholders of the Trust would become shareholders of the New Trust, receiving shares of such New Trust equal to the value of their holdings in the Trust. The Plan is subject to the approval of the Trust’s shareholders at a special meeting of shareholders anticipated to be held during the second quarter of 2010.

 

 

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.

 

 

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
March 23, 2010
     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
March 23, 2010
/s/ Francis Smith
Francis Smith
Principal Financial Officer
March 23, 2010