SUB-ITEM 77(d)

MORGAN STANLEY INSURED MUNICIPAL BOND TRUST


As previously stated in the Joint Proxy Statement dated October 1, 2008, which
was distributed in connection with the November 14, 2008 Special Shareholder
Meeting, the Trust may invest in options, futures, variable rate obligations and
when-issued or delayed delivery securities as noted below.

         Options and Futures. The Trust may invest in options and futures. The
Trust may use options and futures to protect against a decline in the Trust's
securities or an increase in prices of securities that may be purchased. If the
Trust invests in options and/or futures, its participation in these markets
would subject the Trust's portfolio to certain risks. If the Investment
Adviser's predictions of movements in the direction of the markets are
inaccurate, the adverse consequences to the Trust (e.g., a reduction in the
Trust's net asset value or a reduction in the amount of income available for
distribution) may leave the Trust in a worse position than if these strategies
were not used. Other risks inherent in the use of options and futures include,
for example, the possible imperfect correlation between the price of options and
futures contracts and movements in the prices of the securities being hedged and
the possible absence of a liquid secondary market for any particular instrument.
Certain options may be over-the-counter options which are options negotiated
with dealers; there is no secondary market for these investments and they may be
difficult to value.

         Variable Rate Obligations. The Trust may invest in Municipal
Obligations of the type called variable rate obligations. The interest rate
payable on a variable rate obligation is adjusted at predesignated periodic
intervals. Other features may include the right whereby the Trust may demand
prepayment of the principal amount of the obligation prior to its stated
maturity (a "demand feature") and the right of the issuer to prepay the
principal amount prior to maturity. The principal benefit of a variable rate
obligation is that the interest rate adjustment minimizes changes in the market
value of the obligation. As a result, the purchase of variable rate obligations
should enhance the ability of the Trust to maintain a stable net asset value per
share and to sell obligations prior to maturity at a price that is approximately
the full principal amount of the obligations. The principal benefit to the Trust
of purchasing obligations with a demand feature is that liquidity, and the
ability of the Trust to obtain repayment of the full principal amount of an
obligation prior to maturity, is enhanced. The payment of principal and interest
by issuers of certain obligations purchased by the Trust may be guaranteed by
letters of credit or other credit facilities offered by banks or other financial
institutions. Such guarantees will be considered in determining whether an
obligation meets the Trust's investment quality requirements.

         When-Issued and Delayed Delivery Securities. From time to time, the
Trust may purchase securities on a when-issued or delayed delivery basis. When
these transactions are negotiated, the price is fixed at the time of the
commitment, but delivery and payment can take place a month or more after the
date of commitment. The Trust may sell the securities before the settlement
date, if it is deemed advisable. The securities so purchased or sold are subject
to market fluctuation and no interest or dividends accrue to the purchaser prior
to the settlement date. At the time the Trust makes the commitment to purchase
or sell securities on a when-issued or delayed delivery basis, it will record
the transaction and thereafter reflect the value, each day, of such security
purchased, or if a sale, the proceeds to be received, in determining its net
asset value. At the time of delivery of the securities, their value may be more
or less than the purchase or sale price. An increase in the percentage of the
Trust's assets committed to the purchase of securities on a when-issued or
delayed delivery basis may increase the volatility of its net asset value. The
Trust will also establish a segregated account on the Trust's books in which it
will continually maintain cash or cash equivalents or other liquid portfolio
securities equal in value to commitments to purchase securities on a when-issued
or delayed delivery basis.