UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM N-CSR

                   CERTIFIED SHAREHOLDER REPORT OF REGISTERED
                         MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-06053

Morgan Stanley Insured Municipal Bond Trust
               (Exact name of registrant as specified in charter)

1221 Avenue of the Americas, New York, New York 10020
         (Address of principal executive offices)                               (Zip code)

Ronald E. Robison
1221 Avenue of the Americas, New York, New York 10020
                                                (Name and address of agent for service)

Registrant's telephone number, including area code: 212-762-4000

Date of fiscal year end: October 31, 2003

Date of reporting period: October 31, 2003


Item 1 - Report to Shareholders

Welcome, Shareholder:

In this report, you'll learn about how your investment in Morgan Stanley Insured Municipal Bond Trust performed during the annual period. We will provide an overview of the market conditions, and discuss some of the factors that affected performance during the reporting period. In addition, this report includes the Trust's financial statements and a list of Trust investments.

Market forecasts provided in this report may not necessarily come to pass. There is no assurance that the Trust will achieve its investment objective. The Trust is subject to market risk, which is the possibility that market values of securities owned by the Trust will decline and, therefore, the value of the Trust shares may be less than what you paid for them. Accordingly, you can lose money investing in this Trust.

	Fund Report
	For the year ended October 31, 2003

Market Conditions

Over the past 12 months the tone of the U.S. economy shifted from weak to accelerating growth culminating in 8.2 percent GDP growth in the third quarter of 2003. One of the most closely watched economic indicators, employment strength, was in negative territory for much of the period. Repeated comments from government and private sector economists suggesting that the U.S. economy might be entering a deflationary period also weighed heavily on investors during much of the year. At the same time, ongoing budgetary and fiscal difficulties at the state and local levels contributed to ratings downgrades for many municipal bonds. The Federal Reserve Board attempted to allay these fears and keep the economy moving forward by cutting the federal funds target rate twice to a level of 1.0 percent.

The uncertain economic climate had an effect on the municipal bond market. While yields on intermediate- and long-term bonds ended the period roughly where they began, the road between those two points was decidedly bumpy. The 12-month period can be divided into two distinct market environments. The first, which lasted from October 2002 to mid-June 2003, saw municipal yields fall by roughly 75 basis points to levels not seen since the late 1960s. Plummeting yields led to a surge in issuance as municipalities moved to lock in new low financing rates and, in the case of older bonds, low refinancing costs. Record levels of supply met with strong demand by investors in search of tax-exempt income to offset low money market rates. Also, the relatively attractive yield of municipal bonds versus Treasuries created demand from institutional taxable investors who "crossed-over" to purchase municipals.

The municipal market reversed abruptly in mid-June, when yields began to climb from their lows and investors shifted their attention to the improving equity market. Participation from cross-over investors also evaporated as taxable yields rose faster than those of tax-exempts. Issuance remained strong through July, but declined over the last three months as yields rose. These forces combined to push municipal-bond yields above their historic lows, ending the fiscal year near where they began.

Performance Analysis

The net asset value (NAV) of Morgan Stanley Insured Municipal Bond Trust (IMB) decreased from $15.90 to $15.84 per share for the fiscal year ended October 31, 2003. Based on this change plus reinvestment of tax-free dividends totaling $0.8975 per share and a long-term capital gain distribution of $0.2299 per share, the Trust's total NAV return was 7.44 percent. IMB's value on the New York Stock Exchange (NYSE) increased from $14.31 to $14.50 per share during the same period. Based on this change plus reinvestment of tax-free dividends, the Trust's total market return was 9.27 percent. On October 31, 2003, IMB's NYSE market price was at an 8.46 percent discount to its NAV. Past performance is no guarantee of future results.

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Monthly dividends for the fourth quarter of 2003 were declared in September. Beginning with the October payment the monthly payment was decreased from $0.0750 to $0.0725 per share. The new dividend reflects the level of the Trust's undistributed net investment income and projected earnings power. The Trust's level of undistributed net investment income was $0.120 per share on October 31, 2003, versus $0.181 per share as of October 31, 2002.

From a strategic point of view, with interest rates at multi-decade lows, we also became increasingly concerned that the next significant shift in interest rates might be upward. As a result, we began to establish a hedge position by selling Treasury futures to reduce the portfolio's duration (a measure of interest rate sensitivity). This allowed us to maintain an average maturity target range of 20 years in order to take advantage of the steepness of the municipal yield curve. Nevertheless, market yields on new investments were lower than the book yields on portfolio holdings called for redemption. The portfolio's duration adjusted for leverage was 11.3 years. We continued to emphasize revenue bonds in sectors tied to reliable income streams from essential services such as municipal electric, transportation and water and sewer. As of October 31, 2003, the Trust's net assets, including preferred shares, of $102 million were diversified across 47 credits in 13 long-term sectors.

As discussed in previous reports, the total income available for distribution to holders of common shares includes incremental income provided by the Trust's outstanding Auction Rate Preferred Shares (ARPS). ARPS dividends reflect prevailing interest rates on maturities normally ranging from one week to two years. Incremental income to holders of common shares depends on two factors. The first is the amount of ARPS outstanding, the second the spread between the portfolio's cost yield and its ARPS expenses (ARPS auction rate and expenses). The greater the spread and the amount of ARPS outstanding, the greater the amount of incremental income available for distribution to holders of common shares. The level of net investment income available for distribution varies with the level of short-term interest rates. ARPS leverage also increases the price volatility of common shares and has the effect of extending portfolio duration.

During the 12-month period, ARPS leverage contributed approximately $0.15 per share to common share earnings. The Trust has one ARPS series totaling $30 million and representing 29 percent of net assets, including preferred shares. The series is currently in a two-year auction mode maturing in July 2004, with a yield of 2.199 percent.

The Trust's procedure for reinvesting all dividends and distributions in common shares is through purchases in the open market. This method helps support the market value of the Trust's shares. In addition, we would like to remind you that the Trustees have approved a procedure whereby the Trust may, when appropriate, purchase shares in the open market or in privately negotiated transactions at a price not above market value or net asset value, whichever is lower at the time of purchase. The Trust may also utilize

3

procedures to reduce or eliminate the amount of outstanding ARPS, including their purchase in the open market or in privately negotiated transactions. During the 12-month period ended October 31, 2003, the Trust purchased and retired 94,900 shares of common stock at a weighted average market discount of 6.42 percent.

LARGEST SECTORS
Transportation					24.3	%
Water & Sewer					17.4
Refunded					13.5
General Obligation					10.4
Hospital					8.1

CREDIT ENHANCEMENTS
MBIA					37.6	%
Ambac					28.4
FGIC					18.1
FSA					12.7
US Gov't Backed					3.2

Subject to change daily. Largest sectors and credit enhancements percentages are as a percentage of total long-term investment. Provided for informational purposes only and should not be deemed as a recommendation to buy or sell the securities mentioned. Morgan Stanley is a full-service firm engaged in securities trading and brokerage activities, investment banking, research and analysis, financing and financial advisory services.

Results of Annual Shareholder Meeting

On October 29, 2003, an annual meeting of the Trust's shareholders was held for the purpose of voting on the following matter, the results of which were as follows:

(1) Election of Trustees:

Edwin J. Garn
For:					3,748,738
Withheld:					81,401
Joseph J. Kearns
For:					3,751,084
Withheld:					79,055
Michael E. Nugent
For:					3,757,166
Withheld:					72,973
Philip J. Purcell
For:					3,757,504
Withheld:					72,635
Fergus Reid
For:					3,752,601
Withheld:					77,538

The following Trustees were not standing for reelection at this meeting: Michael Bozic, Charles A. Fiumefreddo, Wayne E. Hedien, James F. Higgins and Dr. Manuel H. Johnson.

4

	Distribution by Maturity
	(% of Long-Term Portfolio)

Weighted Average Maturity: 18 Years

Portfolio structure is subject to change.

Geographic Summary of Investments
Based on Market Value as a Percent of Total Investments

Alaska					2.9	%
Arizona					2.2
California					1.1
Colorado					3.5
Florida					11.0
Georgia					5.6
Hawaii					3.2
Idaho					0.6	%
Illinois					10.0
Indiana					3.6
Kansas					1.0
Michigan					4.2
Missouri					4.3
Nevada					3.1
New Hampshire					4.8	%
New Jersey					1.9
New Mexico					1.1
New York					13.1
North Carolina					1.0
Ohio					2.1
Oregon					1.7
Pennsylvania					4.3	%
Puerto Rico					3.2
South Carolina					1.0
Texas					4.2
Virginia					6.3
Joint exemptions*					(1.0	)
Total					100.0	%

* Joint exemptions have been included in each geographic location.

5

	Call and Cost (Book) Yield Structure

Years Bonds Callable—Weighted Average Call Protection: 6 Years

(Based on Long-Term Portfolio) As of 10/31/03

Cost (Book) Yield^(b)—Weighted Average Book Yield: 5.6%

(Based on Long-Term Portfolio) As of 10/31/03

(a) May include issues callable in previous years.

(b) Cost or "book" yield is the annual income earned on a portfolio investment based on its original purchase price before the Trust's operating expenses. For example, the Trust is earning a book yield of 7.1% on 5% of the long-term portfolio that is callable in 2003. Portfolio structure is subject to change.

6

Morgan Stanley Insured Municipal Bond Trust

Portfolio of Investments October 31, 2003

PRINCIPAL AMOUNT IN THOUSANDS								COUPON RATE				MATURITY DATE				VALUE
				Tax-Exempt Municipal Bonds (137.2%)
				General Obligation (14.3%)
$	2,000			North Slope Borough, Alaska, Ser 2000 B (MBIA)					0.00	%			06/30/11			$	1,485,720
	2,000			Florida Board of Education, Capital Outlay Refg 2002 Ser C (MBIA)					5.00				06/01/19				2,089,760
	2,000			Hawaii, Ser 2001 (FGIC)					5.375				08/01/18				2,177,980
	1,500			Chicago Park District, Illinois, Harbor Facilities Ser 2003 C (Ambac)					5.00				01/01/24				1,510,875
				Illinois,
	1,400			Ser 2000 (MBIA)					5.75				12/01/17				1,582,588
	1,300			Ser 2000 (MBIA)					5.75				12/01/18				1,462,786
	10,200																10,309,709
				Educational Facilities Revenue (5.1%)
	1,500			New Hampshire Health & Education Facilities Authority, University of New Hampshire Ser 2001 (Ambac)					5.125				07/01/33				1,524,030
	2,000			New York State Dormitory Authority, St John's University Ser 1996 (MBIA)					5.70				07/01/26				2,174,720
	3,500																3,698,750
				Electric Revenue (5.2%)
	1,400			Alaska Industrial Development & Export Authority, Snettisham Hydroelectric 1st Ser (AMT) (Ambac)					5.00				01/01/27				1,386,630
	3,000			Long Island Power Authority, New York, Ser 2000 A (FSA)††					0.00				06/01/20				1,372,830
	1,000			South Carolina Public Service Authority, 1997 Refg Ser A (MBIA)					5.00				01/01/29				1,003,620
	5,400																3,763,080
				Hospital Revenue (11.1%)
	2,000			Mesa Industrial Development Authority, Arizona, Discovery Health Ser 1999 A (MBIA)					5.875				01/01/16				2,255,440
	2,000			University of Missouri, Health Ser 1996 A (Ambac)					5.50				11/01/16				2,178,760
	2,500			New York State Dormitory Authority, Memorial Sloan Kettering Cancer Center, 2003 Ser I (MBIA)					5.00				07/01/24				2,528,500
	1,000			University of North Carolina, Hospitals at Chapel Hill Ser 1999 (Ambac)					5.00				02/15/24				1,011,490
	7,500																7,974,190
				Industrial Development/Pollution Control Revenue (5.1%)
	2,500			Jasper County, Indiana, Northern Indiana Public Service Co Collateralized Ser 1991 (MBIA)					7.10				07/01/17				2,587,875
	1,000			Burlington, Kansas, Kansas Gas & Electric Co Ser 1991 (MBIA)					7.00				06/01/31				1,045,150
	3,500																3,633,025

See Notes to Financial Statements

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Morgan Stanley Insured Municipal Bond Trust

Portfolio of Investments October 31, 2003 continued

PRINCIPAL AMOUNT IN THOUSANDS								COUPON RATE				MATURITY DATE				VALUE
				Mortgage Revenue – Multi-Family (3.9%)
$	2,640			New York State Housing Finance Agency, 1996 Ser A Refg (FSA)					6.10	%			11/01/15			$	2,808,802
				Mortgage Revenue – Single Family (4.0%)
	890			New Jersey Housing Mortgage Finance Authority, Home Buyer Ser 2000 CC (AMT) (MBIA)					5.875				10/01/31				926,579
	1,870			Virginia Housing Development Authority, 2001 Ser J (MBIA)					5.20				07/01/19				1,932,159
	2,760																2,858,738
				Public Facilities Revenue (6.4%)
	3,000			Broward County School Board, Florida, Ser 2001 A COPs (FSA)					5.00				07/01/26				3,031,320
	1,500			Jacksonville, Florida, Excise Tax Ser 2003 C (AMT) (MBIA)					5.25				10/01/19				1,555,095
	4,500																4,586,415
				Recreational Facilities Revenue (4.8%)
	1,250			College Park Business & Industrial Development Authority, Georgia, Civic Center Ser 2000 (Ambac)					5.75				09/01/26				1,364,113
	2,000			Hamilton County, Ohio, Sales Tax Ser 2000 (Ambac)					5.25				12/01/32				2,060,540
	3,250																3,424,653
				Tax Allocation Revenue (1.5%)
	1,000			Long Beach Bond Finance Authority, California, Downtown, North Long Beach, Poly High and West Beach 2002 Ser A (Ambac)					5.375				08/01/18				1,082,180
				Transportation Facilities Revenue (33.4%)
	2,000			Chicago, Illinois, O'Hare Int'l Airport Passenger Ser A (AMT) (Ambac)					5.375				01/01/32				2,041,580
	3,000			Illinois Toll Highway Authority, Priority Refg 1998 Ser A (FSA)					5.50				01/01/15				3,390,359
	1,500			Wayne County, Michigan, Detroit Metropolitan Wayne County Airport Refg Ser 2002 D (AMT) (FGIC)					5.50				12/01/17				1,594,665
	3,000			Nevada Department of Business & Industry, Las Vegas Monorail 1st Tier Ser 2000 (Ambac)					5.375				01/01/40				3,135,360
	2,500			New Hampshire, Turnpike 1991 Refg Ser B & C (FGIC)					12.314	‡			11/01/17				3,247,600
				Metropolitan Transportation Authority, New York,
	1,000			State Service Contract Ser 2002 A (MBIA)					5.50				01/01/20				1,090,530
	2,000			State Service Contract Ser 2002 B (MBIA)					5.50				07/01/20				2,181,060
	1,000			Port Authority of New York & New Jersey, Cons 121 Ser (MBIA)#					5.125				10/15/30				1,016,650
	2,000			Southeastern Pennsylvania Transportation Authority, Ser A 1999 (FGIC)					5.25				03/01/18				2,146,100

See Notes to Financial Statements

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Morgan Stanley Insured Municipal Bond Trust

Portfolio of Investments October 31, 2003 continued

PRINCIPAL AMOUNT IN THOUSANDS								COUPON RATE				MATURITY DATE				VALUE
$	2,000			Dallas-Forth Worth Int'l Airport, Texas, Refg & Impr Ser 2001 A (AMT) (FGIC)					5.50	%			11/01/31			$	2,059,960
	2,000			Texas Turnpike Authority, Central Texas First Tier Ser 2002 A (Ambac)					5.50				08/15/39				2,113,520
	22,000																24,017,384
				Water & Sewer Revenue (23.9%)
	2,000			Miami Beach, Florida, Water & Sewer Ser 2000 (Ambac)					5.75				09/01/25				2,166,420
	2,000			Augusta, Georgia, Water & Sewerage Ser 2000 (FSA)					5.25				10/01/22				2,093,160
	2,000			Henry County Water & Sewer Authority, Georgia, Ser 2000 (FGIC)					5.625				02/01/30				2,153,840
	1,000			Honolulu City & County, Hawaii, Wastewater Jr Ser 1998 (FGIC)					5.25				07/01/17				1,080,130
	2,000			St Louis, Missouri, Water Refg Ser 1998 (Ambac)					4.75				07/01/14				2,091,320
	1,000			Rio Rancho, New Mexico, Water & Wastewater Refg Ser 1999 (Ambac)					5.25				05/15/17				1,079,630
	2,000			Allegheny County Sanitary Authority, Pennsylvania, Sewer Ser 2000 (MBIA)					5.50				12/01/24				2,126,600
	4,000			Norfolk, Virginia, Water Ser 1995 (MBIA)					5.875				11/01/20				4,381,800
	16,000																17,172,900
				Refunded (18.5%)
	3,000			Denver, Colorado, Civic Center Office Building Ser 2000 B COPs (Ambac)					5.50				12/01/10†				3,496,260
	2,000			Miami-Dade County School Board, Florida, Ser 2001 A COPs (MBIA)					5.00				05/01/11†				2,235,680
	1,750			Detroit, Michigan, Water Supply Ser 1999 A (FGIC)					5.75				01/01/10†				2,036,808
	500			Detroit, Michigan, Water Supply Ser 2001 A (FGIC)					5.75				07/01/11†				586,430
	1,425			Port of Portland, Oregon, Portland Int'l Airport Ser Seven B (AMT) (MBIA)					7.10				01/01/12†				1,746,794
	3,000			Puerto Rico Infrastructure Financing Authority, 2000 Ser A (ETM)					5.50				10/01/32				3,241,259
	11,675																13,343,231
	93,925			Total Tax-Exempt Municipal Bonds (Cost $90,626,341)													98,673,057
				Short-Term Tax-Exempt Municipal Obligations (2.1%)
	555			Idaho Health Facilities Authority, St Luke's Regional Medical Center Ser 2000 (FSA) (Demand 11/03/03)					1.15	*			07/01/30				555,000
	1,000			Rockport, Indiana, Indiana & Michigan Power Co Ser B (Secondary FGIC) (Redeemed 11/14/03)					7.60				03/01/16				1,002,370
	1,555			Total Short-Term Tax-Exempt Municipal Obligations (Cost $1,555,000)													1,557,370
$	95,480			Total Investments (Cost $92,181,341) (a) (b)									139.3	%			100,230,427
				Other Assets in Excess of Liabilities									2.5				1,765,885
				Preferred Shares of Beneficial Interest									(41.8	)			(30,054,972	)
				Net Assets Applicable to Common Shareholders									100.0	%		$	71,941,340

See Notes to Financial Statements

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Morgan Stanley Insured Municipal Bond Trust

Portfolio of Investments October 31, 2003 continued

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.

ETM Escrowed to maturity.

† Prerefunded to call date shown.

†† This security has been physically segregated in connection with open futures contracts.

‡ Current coupon rate for residual interest bond. This rate resets periodically as the auction rate on the related short-term security changes.

# Joint exemption in New York and New Jersey.

* Current coupon of variable rate demand obligation.

(a) Securities have been designated as collateral in an amount equal to $11,180,538 in connection with the open futures contracts.

(b) The aggregate cost for federal income tax purposes is $92,097,551. The aggregate gross unrealized appreciation is $8,232,520 and the aggregate gross unrealized depreciation is $99,644, resulting in net unrealized appreciation of $8,132,876.

Bond Insurance:

Ambac
Ambac Assurance Corporation.

FGIC
Financial Guaranty Insurance Company.

FSA
Financial Security Assurance Inc.

MBIA
Municipal Bond Investors Assurance Corporation.

Futures Contracts Open at October 31, 2003:

NUMBER OF CONTRACTS				LONG/SHORT				DESCRIPTION, DELIVERY MONTH AND YEAR				UNDERLYING FACE AMOUNT AT FACE				UNREALIZED DEPRECIATION
100				Short				U.S. Treasury Note 5 Yr December/2003				$(11,181,250)				$(256,712)
15				Short				U.S. Treasury Note 10 Yr December/2003				(1,684,453)				(55,940)
								Total unrealized depreciation								$(312,652)

See Notes to Financial Statements

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Morgan Stanley Insured Municipal Bond Trust

Financial Statements

Statement of Assets and Liabilities

October 31, 2003

Assets:
Investments in securities, at value (cost $92,181,341)				$	100,230,427
Cash					59,892
Receivable for:
Interest					1,603,575
Investments sold					177,276
Prepaid expenses					115,685
Total Assets					102,186,855
Liabilities:
Payable for:
Investment management fee					34,209
Common shares of beneficial interest repurchased					27,770
Variation margin					22,343
Accrued expenses					106,221
Total Liabilities					190,543
Preferred shares of beneficial interest, (at liquidation value) (1,000,000 shares authorized of non-participating $.01 par value, 600 shares outstanding)					30,054,972
Net Assets Applicable to Common Shareholders				$	71,941,340
Composition of Net Assets Applicable to Common Shareholders:
Common shares of beneficial interest (unlimited shares authorized of $.01par value, 4,542,720 shares outstanding)				$	62,890,114
Net unrealized appreciation					7,736,434
Accumulated undistributed net investment income					544,934
Accumulated undistributed net realized gain					769,858
Net Assets Applicable to Common Shareholders				$	71,941,340
Net Asset Value Per Common Share     ($71,941,340 divided by 4,542,720 common shares outstanding)				$	15.84

See Notes to Financial Statements

11

Morgan Stanley Insured Municipal Bond Trust

Financial Statements continued

Statement of Operations

For the year ended October 31, 2003

Net Investment Income:
Interest Income				$	5,273,412
Expenses
Investment management fee					361,573
Auction commission fees					149,788
Professional fees					69,623
Transfer agent fees and expenses					26,811
Custodian fees					24,406
Shareholder reports and notices					20,257
Trustees' fees and expenses					18,943
Registration fees					13,382
Auction agent fees					7,874
Other					23,895
Total Expenses					716,552
Less: expense offset					(24,269	)
Net Expenses					692,283
Net Investment Income					4,581,129
Net Realized and Unrealized Gain (Loss):
Net Realized Gain on:
Investments					789,826
Futures contracts					9,931
Net Realized Gain					799,757
Net Change in Unrealized Appreciation on:
Investments					487,968
Futures contracts					(312,652	)
Net Appreciation					175,316
Net Gain					975,073
Dividends to preferred shareholders from net investment income					(747,426	)
Net Increase				$	4,808,776

See Notes to Financial Statements

12

Morgan Stanley Insured Municipal Bond Trust

Financial Statements continued

Statement of Changes in Net Assets

				FOR THE YEAR ENDED OCTOBER 31, 2003				FOR THE YEAR ENDED OCTOBER 31, 2002
Increase (Decrease) in Net Assets:
Operations:
Net investment income				$	4,581,129			$	4,830,347
Net realized gain					799,757				1,068,752
Net change in unrealized appreciation					175,316				174,575
Dividends to preferred shareholders from net investment income					(747,426	)			(837,834	)
Net Increase					4,808,776				5,235,840
Dividends and Distributions to Common Shareholders from:
Net investment income					(4,131,366	)			(3,832,763	)
Net realized gain					(1,064,712	)			(654,365	)
Total Dividends and Distributions					(5,196,078	)			(4,487,128	)
Decrease from transactions in common shares of beneficial interest					(1,406,893	)			(1,611,985	)
Net Decrease					(1,794,195	)			(863,273	)
Net Assets Applicable to Common Shareholders:
Beginning of period					73,735,535				74,598,808
End of Period
(Including accumulated undistributed net investment income of $544,934 and$838,526, respectively)				$	71,941,340			$	73,735,535

See Notes to Financial Statements

13

Morgan Stanley Insured Municipal Bond Trust

Notes to Financial Statements October 31, 2003

1.   Organization and Accounting Policies

Morgan Stanley Insured Municipal Bond Trust (the "Trust") is registered under the Investment Company Act of 1940, as amended, as a diversified, closed-end management investment company. The Trust's investment objective is to provide current income which is exempt from federal income tax. The Trust was organized as a Massachusetts business trust on February 27, 1990 and commenced operations on February 28, 1991.

The following is a summary of significant accounting policies:

A.   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 bid side of the market each day. 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; (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; and (3) 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.

B.   Accounting for Investments — Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on security transactions are determined by the identified cost method. Discounts are accreted and premiums are amortized over the life of the respective securities. Interest income is accrued daily.

C.   Futures Contracts — A futures contract is an agreement between two parties to buy and sell financial instruments or contracts based on financial indices at a set price on a future date. Upon entering into such a contract, the Trust is required to pledge to the broker cash, U.S. Government securities or other liquid portfolio securities equal to the minimum initial margin requirements of the applicable futures exchange. Pursuant to the contract, the Trust agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments known as variation margin are recorded by the Trust as unrealized gains and losses. Upon closing of the contract, the Trust realizes a gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

D.   Federal Income Tax Policy — It is the Trust's policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable and nontaxable income to its shareholders. Accordingly, no federal income tax provision is required.

14

Morgan Stanley Insured Municipal Bond Trust

Notes to Financial Statements October 31, 2003 continued

E.   Dividends and Distributions to Shareholders — Dividends and distributions to shareholders are recorded on the ex-dividend date.

F.   Use of Estimates — The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that effect the reported amounts and disclosures. Actual results could differ from those estimates.

2.   Investment Management Agreement

Pursuant to an Investment Management Agreement with Morgan Stanley Investment Advisors Inc. (the "Investment Manager"), the Trust pays a management fee, calculated weekly and payable monthly, by applying the annual rate of 0.35% to the Trust's weekly net assets including preferred shares.

3.   Security Transactions and Transactions with Affiliates

The cost of purchases and proceeds from sales of portfolio securities, excluding short-term investments, for the year ended October 31, 2003 aggregated $7,188,155 and $8,506,303, respectively. Included in the aforementioned transactions are purchases and sales of $1,508,655 and $1,520,430, respectively, with other Morgan Stanley funds, including a net realized loss of $19,607.

Morgan Stanley Trust, an affiliate of the Investment Manager, is the Trust's transfer agent. At
October 31, 2003, the Trust had transfer agent fees and expenses payable of approximately $2,300.

The Trust has an unfunded noncontributory defined benefit pension plan covering all independent Trustees of the Trust who will have served as independent Trustees for at least five years at the time of retirement. Benefits under this plan are based on years of service and compensation during the last five years of service. Aggregate pension costs for the year ended October 31, 2003 included in Trustees' fees and expenses in the Statement of Operations amounted to $7,015. At October 31, 2003, the Trust had an accrued pension liability of $55,255 which is included in accrued expenses in the Statement of Assets and Liabilities.

4. Preferred Shares of Beneficial Interest

The Trust is authorized to issue up to 1,000,000 non-participating preferred shares of beneficial interest having a par value of $.01 per share, in one or more series, with rights as determined by the Trustees, without approval of the common shareholders. The Trust has issued Auction Rate Preferred Shares ("Preferred Shares") which have a liquidation value of $50,000 per share plus the redemption premium, if any, plus accumulated but unpaid dividends, whether or not declared, thereon to the date of distribution. The Trust may redeem such shares, in whole or in part, at the original purchase price of $50,000 per share plus accumulated but unpaid dividends, whether or not declared, thereon to the date of redemption.

15

Morgan Stanley Insured Municipal Bond Trust

Notes to Financial Statements October 31, 2003 continued

Dividends, which are cumulative, are reset through auction procedures.

SHARES*				AMOUNT IN THOUSANDS*				RATE*				RESET     DATE				RANGE OF DIVIDEND RATES**
600				$	30,000				2.199	%			07/08/04				2.199	%

 * As of October 31, 2003.

** For the year ended October 31, 2003.

Subsequent to October 31, 2003 and up through December 5, 2003, the Trust paid dividends at a rate of 2.199% in the aggregate amount of $109,944.

The Trust is subject to certain restrictions relating to the preferred shares. Failure to comply with these restrictions could preclude the Trust from declaring any distributions to common shareholders or purchasing common shares and/or could trigger the mandatory redemption of preferred shares at liquidation value.

The preferred shares, which are entitled to one vote per share, generally vote with the common shares but vote separately as a class to elect two Trustees and on any matters affecting the rights of the preferred shares.

5.   Expense Offset

The expense offset represents a reduction of the custodian fees for earnings on cash balances maintained by the Trust.

6.   Common Shares of Beneficial Interest

Transactions in common shares of beneficial interest were as follows:

				SHARES				PAR VALUE				CAPITAL PAID IN EXCESS OF PAR VALUE
Balance, October 31, 2001					4,750,020			$	47,501			$	65,820,431
Treasury shares purchased and retired (weighted average discount 7.18%)*					(112,400	)			(1,124	)			(1,610,861	)
Reclassification due to permanent book/tax differences					—				—				15,234
Balance, October 31, 2002					4,637,620				46,377				64,224,804
Treasury shares purchased and retired (weighted average discount 6.42%)*					(94,900	)			(949	)			(1,405,944	)
Reclassification due to permanent book/tax differences					—				—				25,826
Balance, October 31, 2003					4,542,720			$	45,428			$	62,844,686

* The Trustees have voted to retire the shares purchased.

16

Morgan Stanley Insured Municipal Bond Trust

Notes to Financial Statements October 31, 2003 continued

7.   Dividends to Common Shareholders

On September 23, 2003, the Trust declared the following dividends from net investment income:

AMOUNT PER SHARE				RECORD              DATE				PAYABLE               DATE
$0.0725					November  7,  2003				November  21,  2003
$0.0725					December  5,  2003				December  19,  2003

8.   Risks Relating to Certain Financial Instruments

The Trust may invest a portion of its assets in residual interest bonds, which are inverse floating rate municipal obligations. The prices of these securities are subject to greater market fluctuations during periods of changing prevailing interest rates than are comparable fixed rate obligations.

At October 31, 2003, the Trust held positions in residual interest bonds having a total value of $3,247,600, which represents 4.5% of the Trust's net assets applicable to common shareholders.

To hedge against adverse interest rate changes, the Trust may invest in financial futures contracts or municipal bond index futures contracts ("futures contracts").

These futures contracts involve elements of market risk in excess of the amount reflected in the Statement of Assets and Liabilities. The Trust bears the risk of an unfavorable change in the value of the underlying securities.

At October 31, 2003, the Trust had outstanding futures contracts.

9.   Federal Income Tax Status

The amount of dividends and distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations which may differ from generally accepted accounting principles. These "book/tax" differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal tax-basis treatment; temporary differences do not require reclassification. Dividends and distributions which exceed net investment income and net realized capital gains for tax purposes are reported as distributions of paid-in-capital.

17

Morgan Stanley Insured Municipal Bond Trust

Notes to Financial Statements October 31, 2003 continued

The tax character of distributions paid was as follows:

				FOR THE YEAR ENDED OCTOBER 31, 2003				FOR THE YEAR ENDED OCTOBER 31, 2002
Tax-exempt income				$	4,878,792			$	4,685,627
Long-term capital gains					1,064,712				654,365
Total distributions				$	5,943,504			$	5,339,992

As of October 31, 2003, the tax-basis components of accumulated earnings were as follows:

Undistributed tax-exempt income				$	517,201
Undistributed ordinary income					54,170
Undistributed long-term gains					457,206
Net accumulated earnings					1,028,577
Temporary differences					(110,227	)
Net unrealized appreciation					8,132,876
Total accumulated earnings				$	9,051,226

As of October 31, 2003, the Trust had temporary book/tax differences primarily attributable to book amortization of discounts on debt securities and mark-to-market of open futures contracts and permanent book/tax differences primarily attributable to tax adjustments on debt securities sold by the Trust. To reflect reclassifications arising from the permanent differences, accumulated undistributed net realized gain was charged $29,897, paid-in-capital was credited $25,826 and accumulated undistributed net investment income was credited $4,071.

18

Morgan Stanley Insured Municipal Bond Trust

Financial Highlights

Selected ratios and per share data for a common share of beneficial interest outstanding throughout each period:

				FOR THE YEAR ENDED OCTOBER 31,
				2003				2002				2001				2000				1999
Selected Per Share Data:
Net asset value, beginning of period				$	15.90			$	15.70			$	14.56			$	14.09			$	15.64
Income (loss) from investment operations:
Net investment income*					1.00				1.03				1.07				1.09				1.11
Net realized and unrealized gain (loss)					0.21				0.28				1.06				0.43				(1.53	)
Common share equivalent of dividends paid to preferred shareholders*					(0.16	)			(0.18	)			(0.25	)			(0.25	)			(0.22	)
Total income (loss) from investment operations					1.05				1.13				1.88				1.27				(0.64	)
Less dividends and distributions from:
Net investment income					(0.90	)			(0.82	)			(0.78	)			(0.86	)			(0.92	)
Net realized gain.					(0.23	)			(0.14	)			—				—				—
Total dividends and distributions					(1.13	)			(0.96	)			(0.78	)			(0.86	)			(0.92	)
Anti-dilutive effect of acquiring treasury shares*					0.02				0.03				0.04				0.06				0.01
Net asset value, end of period				$	15.84			$	15.90			$	15.70			$	14.56			$	14.09
Market value, end of period				$	14.50			$	14.31			$	14.29			$	13.125			$	12.50
Total Return†					9.27	%			7.01	%			15.19	%			12.12	%			(17.60	)%
Ratios to Average Net Assets of Common Shareholders:
Total expenses (before expense offset)					0.98	%(3)			0.94	%(3)			0.93	%(3)			0.95	%(2)			0.91	%(1)
Net investment income before preferred stock dividends					6.27	%			6.66	%			7.00	%			7.67	%			7.36	%
Preferred stock dividends					1.02	%			1.16	%			1.65	%			1.75	%			1.44	%
Net investment income available to common shareholders					5.25	%			5.50	%			5.35	%			5.92	%			5.92	%
Supplemental Data:
Net assets applicable to common shareholders, end of period, in thousands					$71,941				$73,736				$74,599				$71,089				$71,786
Asset coverage on preferred shares at end of period					339	%			345	%			348	%			336	%			338	%
Portfolio turnover rate					7	%			16	%			16	%			26	%			29	%

* The per share amounts were computed using an average number of common shares outstanding during the period.

† Total return is based upon the current market value on the last day of each period reported. Dividends and distributions are assumed to be reinvested at the prices obtained under the Trust's dividend reinvestment plan. Total return does not reflect brokerage commissions.

(1) Does not reflect the effect of expense offset of 0.01%.

(2) Does not reflect the effect of expense offset of 0.02%.

(3) Does not reflect the effect of expense offset of 0.03%.

See Notes to Financial Statements

19

Morgan Stanley Insured Municipal Bond Trust

Independent Auditors' Report

To the Shareholders and Board of Trustees of
Morgan Stanley Insured Municipal Bond Trust:

We have audited the accompanying statement of assets and liabilities of Morgan Stanley Insured Municipal Bond Trust (the "Trust"), including the portfolio of investments, as of October 31, 2003, and the related statements of operations for the year then ended and changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2003, by correspondence with the custodian and broker. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Morgan Stanley Insured Municipal Bond Trust as of October 31, 2003, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP
New York, New York
December 15, 2003
    

2003 Federal Tax Notice (unaudited)

During the year ended October 31, 2003, the Trust paid the following per share amounts from tax-exempt income: $0.95 to common shareholders and $905 to preferred shareholders. For the year ended October 31, 2003, the Trust paid the following per share amounts from long-term capital gains: $0.19 to common shareholders and $341 to preferred shareholders.

20

Morgan Stanley Insured Municipal Bond Trust

Trustee and Officer Information

Independent Trustees:

Name, Age and Address of Independent Trustee

Position(s) Held with Registrant

Term of Office and Length of Time Served*

Principal Occupation(s) During Past 5 Years**

Number of Portfolios in Fund Complex Overseen by Trustee***

Other Directorships Held by Trustee

Michael Bozic (62) c/o Mayer, Brown, Rowe & Maw LLP Counsel to the Independent Directors 1675 Broadway New York, NY

Trustee

Since April 1994

Retired; Director or Trustee of the Retail Funds and TCW/DW Term Trust 2003 (since April 1994) and the Institutional Funds (since July 2003); formerly Vice Chairman of Kmart Corporation (December 1998-October 2000), Chairman and Chief Executive Officer of Levitz Furniture Corporation (November 1995-November 1998) and President and Chief Executive Officer of Hills Department Stores (May 1991-July 1995); formerly variously Chairman, Chief Executive Officer, President and Chief Operating Officer (1987-1991) of the Sears Merchandise Group of Sears, Roebuck & Co.

211

Director of Weirton Steel Corporation.

Edwin J. Garn (71) c/o Summit Ventures LLC 1 Utah Center 201 S. Main Street Salt Lake City, UT

Trustee

Since January 1993

Director or Trustee of the Retail Funds and TCW/DW Term Trust 2003 (since January 1993) and the Institutional Funds (since July 2003); member of the Utah Regional Advisory Board of Pacific Corp.; formerly United States Senator (R-Utah) (1974-1992) and Chairman, Senate Banking Committee (1980-1986), Mayor of Salt Lake City, Utah (1971-1974), Astronaut, Space Shuttle Discovery (April 12-19, 1985), and Vice Chairman, Huntsman Corporation (chemical company).

211

Director of Franklin Covey (time management systems), BMW Bank of North America, Inc. (industrial loan corporation), United Space Alliance (joint venture between Lockheed Martin and the Boeing Company) and Nuskin Asia Pacific (multilevel marketing); member of the board of various civic and charitable organizations.

Wayne E. Hedien (69) c/o Mayer, Brown, Rowe & Maw LLP Counsel to the Independent Directors 1675 Broadway New York, NY

Trustee

Since September 1997

Retired; Director or Trustee of the Retail Funds and TCW/DW Term Trust 2003; (Since September 1997) and the Institutional Funds (since July 2003); formerly associated with the Allstate Companies (1966-1994), most recently as Chairman of The Allstate Corporation (March 1993-December 1994) and Chairman and Chief Executive Officer of its wholly-owned subsidiary, Allstate Insurance Company (July 1989-December 1994).

211

Director of The PMI Group Inc. (private mortgage insurance); Trustee and Vice Chairman of The Field Museum of Natural History; director of various other business and charitable organizations.

21

Morgan Stanley Insured Municipal Bond Trust

Trustee and Officer Information continued

Name, Age and Address of Independent Trustee

Position(s) Held with Registrant

Term of Office and Length of Time Served*

Principal Occupation(s) During Past 5 Years**

Number of Portfolios in Fund Complex Overseen by Trustee***

Other Directorships Held by Trustee

Dr. Manuel H. Johnson (54) c/o Johnson Smick International, Inc. 2099 Pennsylvania Avenue, N.W. Suite 950 Washington, D.C.

Trustee

Since July 1991

Chairman of the Audit Committee and Director or Trustee of the Retail Funds and TCW/DW Term Trust 2003 (since July 1991) and the Institutional Funds (since July 2003); Senior Partner, Johnson Smick International, Inc., a consulting firm; Co-Chairman and a founder of the Group of Seven Council (G7C), an international economic commission; formerly Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury.

211

Director of NVR, Inc. (home construction); Chairman and Trustee of the Financial Accounting Foundation (oversight organization of the Financial Accounting Standards Board); Director of RBS Greenwich Capital Holdings (financial holding company).

Joseph J. Kearns (61) PMB754 23852 Pacific Coast Highway Malibu, CA

Trustee

Since July 2003

Deputy Chairman of the Audit Committee and Director or Trustee of the Retail Funds and TCW/DW Term Trust 2003 (since July 2003) and the Institutional Funds (since August 1994); previously Chairman of the Audit Committee of the Institutional Funds (October 2001-July 2003); President, Kearns & Associates LLC (investment consulting); formerly CFO of the J. Paul Getty Trust.

212

Director of Electro Rent Corporation (equipment leasing), The Ford Family Foundation, and the UCLA Foundation.

Michael E. Nugent (67) c/o Triumph Capital, L.P. 445 Park Avenue New York, NY

Trustee

Since July 1991

Chairman of the Insurance Committee and Director or Trustee of the Retail Funds and TCW/DW Term Trust 2003 (since July 1991) and the Institutional Funds (since July 2001); General Partner of Triumph Capital, L.P., a private investment partnership; formerly Vice President, Bankers Trust Company and BT Capital Corporation (1984-1988).

211

Director of various business organizations.

Fergus Reid (71) 85 Charles Colman Blvd. Pawling, NY

Trustee

Since July 2003

Chairman of the Governance Committee and Director or Trustee of the Retail Funds and TCW/DW Term Trust 2003 (since July 2003) and the Institutional Funds (since June 1992); Chairman of Lumelite Plastics Corporation.

212

Trustee and Director of certain investment companies in the JPMorgan Funds complex managed by JP Morgan Investment Management Inc.

22

Morgan Stanley Insured Municipal Bond Trust

Trustee and Officer Information continued

Interested Trustees:

Name, Age and Address of Interested Trustee

Position(s) Held with Registrant

Term of Office and Length of Time Served*

Principal Occupation(s) During Past 5 Years**

Number of Portfolios in Fund Complex Overseen by Trustee***

Other Directorships Held by Trustee

Charles A. Fiumefreddo (70) c/o Morgan Stanley Trust Harborside Financial Center, Plaza Two, Jersey City, NJ

Chairman of the Board and Trustee

Since July 1991

Chairman and Director or Trustee of the Retail Funds and TCW/DW Term Trust 2003 (since July 1991) and the Institutional Funds (since July 2003); formerly Chief Executive Officer of the Retail Funds and the TCW/DW Term Trust 2003 (until September 2002).

211

None

James F. Higgins (55) c/o Morgan Stanley Trust Harborside Financial Center, Plaza Two, Jersey City, NJ

Trustee

Since June 2000

Director or Trustee of the Retail Funds and TCW/DW Term Trust 2003 (since June 2000) and the Institutional Funds (since July 2003); Senior Advisor of Morgan Stanley (since August 2000); Director of the Distributor and Dean Witter Realty Inc.; previously President and Chief Operating Officer of the Private Client Group of Morgan Stanley (May 1999-August 2000), and President and Chief Operating Officer of Individual Securities of Morgan Stanley (February 1997-May 1999).

211

Director of AXA Financial, Inc. and The Equitable Life Assurance Society of the United States (financial services).

Philip J. Purcell (60) 1585 Broadway New York, NY

Trustee

Since April 1994

Director or Trustee of the Retail Funds and TCW/DW Term Trust 2003 (since April 1994) and the Institutional Funds (since July 2003); Chairman of the Board of Directors and Chief Executive Officer of Morgan Stanley and Morgan Stanley DW Inc.; Director of the Distributor; Chairman of the Board of Directors and Chief Executive Officer of Novus Credit Services Inc.; Director and/or officer of various Morgan Stanley subsidiaries.

211

Director of American Airlines, Inc. and its parent company, AMR Corporation.

    * This is the earliest date the Trustee began serving the funds advised by Morgan Stanley Investment Advisors Inc. (the "Investment Manager") (the "Retail Funds").

  ** The dates referenced below indicating commencement of services as Director/Trustee for the Retail Funds and the funds advised by Morgan Stanley Investment Management Inc., Morgan Stanley Investments LP and Morgan Stanley AIP GP LP (the "Institutional Funds") reflect the earliest date the Director/Trustee began serving the Retail or Institutional Funds as applicable.

*** The Fund Complex includes all open-end and closed-end funds (including all of their portfolios) advised by the Investment Manager and any funds that have an investment advisor that is an affiliated person of the Investment Manager (including but not limited to Morgan Stanley Investment Management Inc. and Morgan Stanley Investments LP).

23

Morgan Stanley Insured Municipal Bond Trust

Trustee and Officer Information continued

Officers:

Name, Age and Address of Executive Officer

Position(s) Held with Registrant

Term of Office and Length of Time Served*

Principal Occupation(s) During Past 5 Years**

Mitchell M. Merin (50) 1221 Avenue of the Americas New York, NY

President

Since May 1999

President and Chief Operating Officer of Morgan Stanley Investment Management Inc.; President, Director and Chief Executive Officer of the Investment Manager and Morgan Stanley Services; Chairman, Chief Executive Officer and Director of the Distributor; Chairman and Director of the Transfer Agent; Director of various Morgan Stanley subsidiaries; President Morgan Stanley Investments LP (since February 2003); President of the Institutional Funds (since July 2003) and President of the Retail Funds and TCW/DW Term Trust 2003 (since May 1999); Trustee (since July 2003) and President (since December 2002) of the Van Kampen Closed-End Funds; Trustee (since May 1999) and President (since October 2002) of the Van Kampen Open-End Funds.

Ronald E. Robison (64) 1221 Avenue of the Americas New York, NY

Executive Vice President and Principal Executive Officer

Since April 2003

Chief Global Operations Officer and Managing Director of Morgan Stanley Investment Management Inc.; Managing Director of Morgan Stanley & Co. Incorporated; Managing Director of Morgan Stanley; Managing Director, Chief Administrative Officer and Director of the Investment Manager and Morgan Stanley Services; Chief Executive Officer and Director of the Transfer Agent; Executive Vice President and Principal Executive Officer of the Institutional Funds (since July 2003); and the TCW/DW Term Trust 2003 (since April 2003); previously President of the Institutional Funds (March 2001-July 2003) and Director of the Institutional Funds (March 2001-July 2003).

Barry Fink (48) 1221 Avenue of the Americas New York, NY

Vice President and General Counsel

Since February 1997

General Counsel (since May 2000) and Managing Director (since December 2000) of Morgan Stanley Investment Management; Managing Director (since December 2000), Secretary (since February 1997) and Director (since July 1998) of the Investment Manager and Morgan Stanley Services; Assistant Secretary of Morgan Stanley DW; Chief Legal Officer of Morgan Stanley Investments LP (since July 2002); Vice President of the Institutional Funds (since July 2003); Vice President and Secretary of the Distributor; previously Secretary of the Retail Funds (February 1997-July 2003); previously Vice President and Assistant General Counsel of the Investment Manager and Morgan Stanley Services (February 1997-December 2001).

Joseph J. McAlinden (60) 1221 Avenue of the Americas New York, NY

Vice President

Since July 1995

Managing Director and Chief Investment Officer of the Investment Manager, Morgan Stanley Investment Management Inc. and Morgan Stanley Investments LP; Director of the Transfer Agent, Chief Investment Officer of the Van Kampen Funds; Vice President of the Institutional Funds (since July 2003) and the Retail Funds (since July 1995).

Stefanie V. Chang (36) 1221 Avenue of the Americas New York, NY

Vice President

Since July 2003

Executive Director of Morgan Stanley & Co. and Morgan Stanley Investment Management Inc. and Vice President of the Institutional Funds (since December 1997) and the Retail Funds (since July 2003); formerly practiced law with the New York law firm of Rogers & Wells (now Clifford Chance LLP).

24

Morgan Stanley Insured Municipal Bond Trust

Trustee and Officer Information continued

Name, Age and Address of Executive Officer

Position(s) Held with Registrant

Term of Office and Length of Time Served*

Principal Occupation(s) During Past 5 Years**

Francis J. Smith (38) c/o Morgan Stanley Trust Harborside Financial Center, Plaza Two, Jersey City, NJ

Treasurer and Chief Financial Officer

Treasurer since July 2003 and Chief Financial Officer since September 2002

Executive Director of the Investment Manager and Morgan Stanley Services (since December 2001); previously Vice President of the Retail Funds (September 2002-July 2003); previously Vice President of the Investment Manager and Morgan Stanley Services (August 2000-November 2001) and Senior Manager at PricewaterhouseCoopers LLP (January 1998-August 2000).

Thomas F. Caloia (57) c/o Morgan Stanley Trust Harborside Financial Center, Plaza Two, Jersey City, NJ

Vice President

Since July 2003

Executive Director (since December 2002) and Assistant Treasurer of the Investment Manager, the Distributor and Morgan Stanley Services; previously Treasurer of the Retail Funds (April 1989-July 2003); formerly First Vice President of the Investment Manager, the Distributor and Morgan Stanley Services.

Mary E. Mullin (36) 1221 Avenue of the Americas New York, NY

Secretary

Since July 2003

Vice President of Morgan Stanley & Co. Incorporated and Morgan Stanley Investment Management Inc.; Secretary of the Institutional Funds (since June 1999) and the Retail Funds (since July 2003); formerly practiced law with the New York law firms of McDermott, Will & Emery and Skadden, Arps, Slate, Meagher & Flom LLP.

    * This is the earliest date the Officer began serving the Retail Funds. Each Officer serves an indefinite term, until his or her successor is elected.

  ** The dates referenced below indicating commencement of service as an Officer for the Retail and Institutional Funds reflect the earliest date the Officer began serving the Retail or Institutional Funds as applicable.

25

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Trustees Michael Bozic Charles A. Fiumefreddo Edwin J. Garn Wayne E. Hedien James F. Higgins Dr. Manuel H. Johnson Joseph J. Kearns Michael E. Nugent Philip J. Purcell Fergus Reid Officers Charles A. Fiumefreddo Chairman of the Board Mitchell M. Merin President Ronald E. Robison Executive Vice President and Principal Executive Officer Barry Fink Vice President and General Counsel Joseph J. McAlinden Vice President Stefanie V. Chang Vice President Francis J. Smith Treasurer and Chief Financial Officer Thomas F. Caloia Vice President Mary E. Mullin Secretary Transfer Agent Morgan Stanley Trust Harborside Financial Center, Plaza Two Jersey City, New Jersey 07311 Independent Auditors Deloitte & Touche LLP Two World Financial Center New York, New York 10281 Investment Manager Morgan Stanley Investment Advisors Inc. 1221 Avenue of the Americas New York, New York 10020 Investments and services offered through Morgan Stanley DW Inc., member SIPC. © 2003 Morgan Stanley 37931RPT-00-13048L03-OP-12/03		MORGAN STANLEY FUNDS
		Morgan Stanley Insured Municipal Bond Trust Annual Report October 31, 2003

Item 2.  Code of Ethics.

(a)      The Trust has adopted a code of ethics (the "Code of Ethics") that
applies to its principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the Trust or
a third party.

(b)      No information need be disclosed pursuant to this paragraph.

(c)      Not applicable.

(d)      Not applicable.

(e)      Not applicable.

(f)

         (1)      The Trust's Code of Ethics is attached hereto as Exhibit A.

         (2)      Not applicable.

         (3)      Not applicable.



Item 3.  Audit Committee Financial Expert.

The Trust's Board of Trustees has determined that it has two "audit committee
financial experts" serving on its audit committee, each of whom are
"independent" Trustees: Dr. Manuel H. Johnson and Joseph J. Kearns. Under
applicable securities laws, a person who is determined to be an audit committee
financial expert will not be deemed an "expert" for any purpose, including
without limitation for the purposes of Section 11 of the Securities Act of 1933,
as a result of being designated or identified as an audit committee financial
expert. The designation or identification of a person as an audit committee
financial expert does not impose on such person any duties, obligations, or
liabilities that are greater than the duties, obligations, and liabilities
imposed on such person as a member of the audit committee and Board of Trustees
in the absence of such designation or identification.



Item 4. Principal Accountant Fees and Services

Applicable only for reports covering fiscal years ending on or after December
15, 2003.





Item 5. Audit Committee of Listed Registrants.

Applicable only for reports covering periods ending on or after the earlier of
(i) the first annual shareholder meeting after January 15, 2004 or (ii) October
31, 2004.


Item 6. [Reserved.]


Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.

The Trust invests in exclusively non-voting securities and therefore this item
is not applicable.


Item 8. [Reserved.]


Item 9 - 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-CSR
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.

There were no significant changes or corrective actions with regard to
significant deficiencies or material weaknesses in the Trust's internal controls
or in other factors that could significantly affect the Trust's internal
controls subsequent to the date of their evaluation.


(b) There were no changes in the registrant's internal control over financial
reporting that occurred during the registrant's most recent fiscal half-year
(the registrant's second fiscal half-year in the case of an annual report) that
has materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.


                                       2




Item 10 Exhibits
(a) The Code of Ethics for Principal Executive and Senior Financial Officers is
attached hereto.

(b) A separate certification for each principal executive officer and principal
financial officer of the registrant are attached hereto as part of EX-99.CERT.




                                   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 Bond Trust

/s/ Ronald E. Robison
Ronald E. Robison
Principal Executive Officer
December 18, 2003

         Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed by the following
persons on behalf of the registrant and in the capacities and on the dates
indicated.

/s/ Ronald E. Robison
Ronald E. Robison
Principal Executive Officer
December 18, 2003

/s/ Francis Smith
Francis Smith
Principal Financial Officer
December 18, 2003






                                       3




                                                                    EXHIBIT 10 A

      CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND SENIOR FINANCIAL OFFICERS
                              ADOPTED JULY 31, 2003



I.       This Code of Ethics (the "Code") for the investment companies within
         the Morgan Stanley complex identified in Exhibit A (collectively,
         "Funds" and each, a "Fund") applies to each Fund's Principal Executive
         Officer, President, Principal Financial Officer and Treasurer (or
         persons performing similar functions) ("Covered Officers" each of whom
         are set forth in Exhibit B) for the purpose of promoting:

         o        honest and ethical conduct, including the ethical handling of
                  actual or apparent conflicts of interest between personal and
                  professional relationships.

         o        full, fair, accurate, timely and understandable disclosure in
                  reports and documents that a company files with, or submits
                  to, the Securities and Exchange Commission ("SEC") and in
                  other public communications made by the Fund;

         o        compliance with applicable laws and governmental rules and
                  regulations;

         o        prompt internal reporting of violations of the Code to an
                  appropriate person or persons identified in the Code; and

         o        accountability for adherence to the Code.

                  Each Covered Officer should adhere to a high standard of
business ethics and should be sensitive to situations that may give rise to
actual as well as apparent conflicts of interest. Any question about the
application of the Code should be referred to the General Counsel or his/her
designee (who is set forth in Exhibit C).



                                       4


II.      COVERED OFFICERS SHOULD HANDLE ETHICALLY ACTUAL AND APPARENT CONFLICTS
         OF INTEREST

         OVERVIEW. A "conflict of interest" occurs when a Covered Officer's
private interest interferes, or appears to interfere, with the interests of, or
his service to, the Fund. For example, a conflict of interest would arise if a
Covered Officer, or a member of his family, receives improper personal benefits
as a result of his position with the Fund.

         Certain conflicts of interest arise out of the relationships between
Covered Officers and the Fund and already are subject to conflict of interest
provisions in the Investment Company Act of 1940 ("Investment Company Act") and
the Investment Advisers Act of 1940 ("Investment Advisers Act"). For example,
Covered Officers may not individually engage in certain transactions (such as
the purchase or sale of securities or other property) with the Fund because of
their status as "affiliated persons" (as defined in the Investment Company Act)
of the Fund. The Fund's and its investment adviser's compliance programs and
procedures are designed to prevent, or identify and correct, violations of these
provisions. This Code does not, and is not intended to, repeat or replace these
programs and procedures, and such conflicts fall outside the parameters of this
Code, unless or until the General Counsel determines that any violation of such
programs and procedures is also a violation of this Code.

         Although typically not presenting an opportunity for improper personal
benefit, conflicts may arise from, or as a result of, the contractual
relationship between the Fund and its investment adviser of which the Covered
Officers are also officers or employees. As a result, this Code recognizes that
the Covered Officers will, in the normal course of their duties (whether
formally for the Fund or for the investment adviser, or for both), be involved
in establishing policies and implementing decisions that will have different
effects on the Fund and its investment adviser. The participation of the Covered
Officers in such activities is inherent in the contractual relationship between
the Fund and the investment adviser and is consistent with the performance by
the Covered Officers of their duties as officers of the Fund. Thus, if performed
in conformity with the provisions of the Investment Company Act and the
Investment Advisers Act, such activities will be deemed to have been handled
ethically. In addition, it is recognized by the Funds' Boards of
Directors/Trustees ("Boards") that the Covered Officers may also be officers or
employees of one or more other investment companies covered by this or other
codes.

         Other conflicts of interest are covered by the Code, even if such
conflicts of interest are not subject to provisions in the Investment Company
Act and the Investment Advisers Act. The following list provides examples of
conflicts of interest under the Code, but Covered Officers should keep in mind
that these examples are not exhaustive. The overarching principle is that the
personal interest of a Covered Officer should not be placed improperly before
the interest of the Fund.

         Each Covered Officer must not:

         o        use his personal influence or personal relationships
                  improperly to influence investment decisions or financial
                  reporting by the Fund whereby


                                       5


                  the Covered Officer would benefit personally (directly or
                  indirectly) to the detriment of the Fund;

         o        cause the Fund to take action, or fail to take action, for the
                  individual personal benefit of the Covered Officer rather than
                  the benefit of the Fund; or

         o        use material non-public knowledge of portfolio transactions
                  made or contemplated for, or actions proposed to be taken by,
                  the Fund to trade personally or cause others to trade
                  personally in contemplation of the market effect of such
                  transactions.

         Each Covered Officer must, at the time of signing this Code, report to
the General Counsel all affiliations or significant business relationships
outside the Morgan Stanley complex and must update the report annually.

         Conflict of interest situations should always be approved by the
General Counsel and communicated to the relevant Fund or Fund's Board. Any
activity or relationship that would present such a conflict for a Covered
Officer would likely also present a conflict for the Covered Officer if an
immediate member of the Covered Officer's family living in the same household
engages in such an activity or has such a relationship. Examples of these
include:

         o        service or significant business relationships as a director on
                  the board of any public or private company;

         o        accepting directly or indirectly, anything of value, including
                  gifts and gratuities in excess of $100 per year from any
                  person or entity with which the Fund has current or
                  prospective business dealings, not including occasional meals
                  or tickets for theatre or sporting events or other similar
                  entertainment; provided it is business-related, reasonable in
                  cost, appropriate as to time and place, and not so frequent as
                  to raise any question of impropriety;

         o        any ownership interest in, or any consulting or employment
                  relationship with, any of the Fund's service providers, other
                  than its investment adviser, principal underwriter, or any
                  affiliated person thereof; and

         o        a direct or indirect financial interest in commissions,
                  transaction charges or spreads paid by the Fund for effecting
                  portfolio transactions or for selling or redeeming shares
                  other than an interest arising from the Covered Officer's
                  employment, such as compensation or equity ownership.

III.     DISCLOSURE AND COMPLIANCE

         o        Each Covered Officer should familiarize himself/herself with
                  the disclosure and compliance requirements generally
                  applicable to the Funds;



                                       6


         o        each Covered Officer must not knowingly misrepresent, or cause
                  others to misrepresent, facts about the Fund to others,
                  whether within or outside the Fund, including to the Fund's
                  Directors/Trustees and auditors, or to governmental regulators
                  and self-regulatory organizations;

         o        each Covered Officer should, to the extent appropriate within
                  his area of responsibility, consult with other officers and
                  employees of the Funds and their investment advisers with the
                  goal of promoting full, fair, accurate, timely and
                  understandable disclosure in the reports and documents the
                  Funds file with, or submit to, the SEC and in other public
                  communications made by the Funds; and

         o        it is the responsibility of each Covered Officer to promote
                  compliance with the standards and restrictions imposed by
                  applicable laws, rules and regulations.

IV.      REPORTING AND ACCOUNTABILITY

         Each Covered Officer must:

         o        upon adoption of the Code (thereafter as applicable, upon
                  becoming a Covered Officer), affirm in writing to the Boards
                  that he has received, read and understands the Code;

         o        annually thereafter affirm to the Boards that he has complied
                  with the requirements of the Code;

         o        not retaliate against any other Covered Officer, other officer
                  or any employee of the Funds or their affiliated persons for
                  reports of potential violations that are made in good faith;
                  and

         o        notify the General Counsel promptly if he/she knows or
                  suspects of any violation of this Code. Failure to do so is
                  itself a violation of this Code.

         The General Counsel is responsible for applying this Code to specific
situations in which questions are presented under it and has the authority to
interpret this Code in any particular situation. However, any waivers(1) sought
by a Covered Officer must be considered by the Board of the relevant Fund or
Funds.

         The Funds will follow these procedures in investigating and enforcing
this Code:

         o        the General Counsel will take all appropriate action to
                  investigate any potential violations reported to him;


- -------------
(1)  Item 2 of Form N-CSR defines "waiver" as "the approval by the registrant of
     a material departure from a provision of the code of ethics."

                                        7


         o        if, after such investigation, the General Counsel believes
                  that no violation has occurred, the General Counsel is not
                  required to take any further action;

         o        any matter that the General Counsel believes is a violation
                  will be reported to the relevant Fund's Audit Committee;

         o        if the directors/trustees/managing general partners who are
                  not "interested persons" as defined by the Investment Company
                  Act (the "Independent Directors/Trustees/Managing General
                  Partners") of the relevant Fund concur that a violation has
                  occurred, they will consider appropriate action, which may
                  include review of, and appropriate modifications to,
                  applicable policies and procedures; notification to
                  appropriate personnel of the investment adviser or its board;
                  or a recommendation to dismiss the Covered Officer or other
                  appropriate disciplinary actions;

         o        the Independent Directors/Trustees/Managing General Partners
                  of the relevant Fund will be responsible for granting waivers
                  of this Code, as appropriate; and

         o        any changes to or waivers of this Code will, to the extent
                  required, be disclosed as provided by SEC rules.

V.       OTHER POLICIES AND PROCEDURES

         This Code shall be the sole code of ethics adopted by the Funds for
purposes of Section 406 of the Sarbanes-Oxley Act of 2002 and the rules and
forms applicable to registered investment companies thereunder. Insofar as other
policies or procedures of the Funds, the Funds' investment advisers, principal
underwriters, or other service providers govern or purport to govern the
behavior or activities of the Covered Officers who are subject to this Code,
they are superseded by this Code to the extent that they overlap or conflict
with the provisions of this Code unless any provision of this Code conflicts
with any applicable federal or state law, in which case the requirements of such
law will govern. The Funds' and their investment advisers' and principal
underwriters' codes of ethics under Rule 17j-1 under the Investment Company Act
and Morgan Stanley's Code of Ethics are separate requirements applying to the
Covered Officers and others, and are not part of this Code.

VI.      AMENDMENTS

         Any amendments to this Code, other than amendments to Exhibits A, B or
C, must be approved or ratified by a majority vote of the Board of each Fund,
including a majority of Independent Directors/Trustees/Managing General
Partners.



                                       8


VII.     CONFIDENTIALITY

         All reports and records prepared or maintained pursuant to this Code
will be considered confidential and shall be maintained and protected
accordingly. Except as otherwise required by law or this Code, such matters
shall not be disclosed to anyone other than the Independent
Directors/Trustees/Managing General Partners of the relevant Fund or Funds and
their counsel, the relevant Fund or Funds and their counsel and the relevant
investment adviser and its counsel.


                                        9






VIII.    INTERNAL USE

         The Code is intended solely for the internal use by the Funds and does
not constitute an admission, by or on behalf of any Fund, as to any fact,
circumstance, or legal conclusion



I have read and understand the terms of the above Code. I recognize the
responsibilities and obligations incurred by me as a result of my being subject
to the Code. I hereby agree to abide by the above Code.


- ------------------------------

Date:
     -------------------------




                                       10






                                    EXHIBIT B

                               INSTITUTIONAL FUNDS
                                COVERED OFFICERS

                          Mitchell M. Merin - President
  Ronald E. Robison - Executive Vice President and Principal Executive Officer
            James W. Garrett - Chief Financial Officer and Treasurer

                                  RETAIL FUNDS
                                COVERED OFFICERS

                          Mitchell M. Merin - President
  Ronald E. Robison - Executive Vice President and Principal Executive Officer
               Frank Smith - Chief Financial Officer and Treasurer




                                       11






                                    EXHIBIT C

                                 GENERAL COUNSEL

                                   Barry Fink




                                       12





                                                                   EXHIBIT 10 B1

                  CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

                                 CERTIFICATIONS

I, Ronald E. Robison, certify that:

1.   I have reviewed this report on Form N-CSR of Morgan Stanley Insured
     Municipal Bond Trust;

2.   Based on my knowledge, this report does not contain any untrue statement of
     a material fact or omit to state a material fact necessary to make the
     statements made, in light of the circumstances under which such statements
     were made, not misleading with respect to the period covered by this
     report;

3.   Based on my knowledge, the financial statements and other financial
     information included in this report, fairly present in all material
     respects the financial condition, results of operations, changes in net
     assets, and cash flows (if the financial statements are required to include
     a statement of cash flows) of the registrant as of, and for, the periods
     presented in this report;

4.   The registrant's other certifying officers and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Rule 30a-3(c) under the Investment Company Act of 1940) for the
     registrant and have:

a)   designed such disclosure controls and procedures, or caused such disclosure
     controls and procedures to be designed under our supervision, to ensure
     that material information relating to the registrant, including its
     consolidated subsidiaries, is made known to us by others within those
     entities, particularly during the period in which this report is being
     prepared;

[b)  Omitted.]

c)   evaluated the effectiveness of the registrant's disclosure controls and
     procedures and presented in this report our conclusions about the
     effectiveness of the disclosure controls and procedures, as of a date
     within 90 days prior to the filing date of this report based on such
     evaluation; and

d)   disclosed in this report any change in the registrant's internal control
     over financial reporting that occurred during the registrant's most recent
     fiscal half-year (the registrant's second fiscal half-year in the case of
     an annual report) that has materially affected, or is reasonably likely to
     materially affect, the registrant's internal control over financial
     reporting; and

5.   The registrant's other certifying officer(s) and I have disclosed to the
     registrant's auditors and the audit committee of the registrant's board of
     directors (or persons performing the equivalent functions):

a)   all significant deficiencies and material weaknesses in the design or
     operation of internal control over financial reporting which are reasonably
     likely to adversely affect the registrant's ability to record, process,
     summarize, and report financial information; and

                                       13


b)   any fraud, whether or not material, that involves management or other
     employees who have a significant role in the registrant's internal controls
     over financial reporting.

Date:  December 18, 2003

                                              /s/ Ronald E. Robison
                                              Ronald E. Robison
                                              Principal Executive Officer




                                       14




                                                                   EXHIBIT 10 B2

                  CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

                                 CERTIFICATIONS

I, Francis Smith, certify that:

6.   I have reviewed this report on Form N-CSR of Morgan Stanley Insured
     Municipal Bond Trust;

7.   Based on my knowledge, this report does not contain any untrue statement of
     a material fact or omit to state a material fact necessary to make the
     statements made, in light of the circumstances under which such statements
     were made, not misleading with respect to the period covered by this
     report;

8.   Based on my knowledge, the financial statements and other financial
     information included in this report, fairly present in all material
     respects the financial condition, results of operations, changes in net
     assets, and cash flows (if the financial statements are required to include
     a statement of cash flows) of the registrant as of, and for, the periods
     presented in this report;

9.   The registrant's other certifying officers and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Rule 30a-3(c) under the Investment Company Act of 1940) for the
     registrant and have:

b)   designed such disclosure controls and procedures, or caused such disclosure
     controls and procedures to be designed under our supervision, to ensure
     that material information relating to the registrant, including its
     consolidated subsidiaries, is made known to us by others within those
     entities, particularly during the period in which this report is being
     prepared;

[b)  Omitted.]

e)   evaluated the effectiveness of the registrant's disclosure controls and
     procedures and presented in this report our conclusions about the
     effectiveness of the disclosure controls and procedures, as of a date
     within 90 days prior to the filing date of this report based on such
     evaluation; and

f)   disclosed in this report any change in the registrant's internal control
     over financial reporting that occurred during the registrant's most recent
     fiscal half-year (the registrant's second fiscal half-year in the case of
     an annual report) that has materially affected, or is reasonably likely to
     materially affect, the registrant's internal control over financial
     reporting; and

10.  The registrant's other certifying officer(s) and I have disclosed to the
     registrant's auditors and the audit committee of the registrant's board of
     directors (or persons performing the equivalent functions):

c)   all significant deficiencies and material weaknesses in the design or
     operation of internal control over financial reporting which are reasonably
     likely to adversely affect the registrant's ability to record, process,
     summarize, and report financial information; and



                                       15


d)   any fraud, whether or not material, that involves management or other
     employees who have a significant role in the registrant's internal controls
     over financial reporting.

Date:  December 18, 2003

                                                     /s/ Francis Smith
                                                     Francis Smith
                                                     Principal Financial Officer



                                       16





                            SECTION 906 CERTIFICATION

                Certification Pursuant to 18 U.S.C. Section 1350,
                             As Adopted Pursuant to
                  Section 906 of the Sarbanes-Oxley Act of 2002

Morgan Stanley Insured Municipal Bond Trust

         In connection with the Report on Form N-CSR (the "Report") of the
above-named issuer for the period ended October 31, 2003 that is accompanied by
this certification, the undersigned hereby certifies that:

1.       The Report fully complies with the requirements of Section 13(a) or
         15(d) of the Securities Exchange Act of 1934; and

2.       The information contained in the Report fairly presents, in all
         material respects, the financial condition and results of operations of
         the Issuer.



Date: December 18, 2003                            /s/ Ronald E. Robison
                                                   ---------------------------
                                                   Ronald E. Robison
                                                   Principal Executive Officer


A signed original of this written statement required by Section 906 has been
provided to Morgan Stanley Insured Municipal Bond Trust and will be retained by
Morgan Stanley Insured Municipal Bond Trust and furnished to the Securities and
Exchange Commission or its staff upon request.



                                       17




                            SECTION 906 CERTIFICATION

                Certification Pursuant to 18 U.S.C. Section 1350,
                             As Adopted Pursuant to
                  Section 906 of the Sarbanes-Oxley Act of 2002

Morgan Stanley Insured Municipal Bond Trust

         In connection with the Report on Form N-CSR (the "Report") of the
above-named issuer for the period ended October 31, 2003 that is accompanied by
this certification, the undersigned hereby certifies that:

1.       The Report fully complies with the requirements of Section 13(a) or
         15(d) of the Securities Exchange Act of 1934; and

2.       The information contained in the Report fairly presents, in all
         material respects, the financial condition and results of operations of
         the Issuer.



Date: December 18, 2003                            /s/ Francis Smith
                                                   ----------------------
                                                   Francis Smith
                                                   Principal Financial Officer


A signed original of this written statement required by Section 906 has been
provided to Morgan Stanley Insured Municipal Bond Trust and will be retained by
Morgan Stanley Insured Municipal Bond Trust and furnished to the Securities and
Exchange Commission or its staff upon request.




                                       18