N-Q 1 y02770nvq.txt FORM N-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY Investment Company Act file number: 811-06346 Morgan Stanley Quality Municipal Investment 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, 2004 Date of reporting period: July 31, 2004 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 QUALITY MUNICIPAL INVESTMENT TRUST PORTFOLIO OF INVESTMENTS JULY 31, 2004 (unaudited)
PRINCIPAL AMOUNT IN COUPON MATURITY THOUSANDS RATE DATE VALUE --------- -------------------------------------------------------------------- ------ -------- ------------- TAX-EXEMPT MUNICIPAL BONDS (138.9%) General Obligation (26.3%) $5,000 North Slope Borough, Alaska, Ser 2000 B (MBIA) 0.00% 06/30/09 $ 4,205,650 3,000 California, Various Purpose Dtd 05/01/03 5.00 02/01/24 3,010,350 2,000 Los Angeles, California, Ser A (WI) 5.00 09/01/24 2,050,100 3,300 San Diego Unified School District, California, 2003 Ser E (FSA) 5.00 07/01/28 3,315,180 Florida State Board of Education, 6,890 Capital Outlay Refg Ser 2001 D 5.375 06/01/18 7,437,342 3,000 Capital Outlay Refg 2002 Ser C (MBIA) 5.00 06/01/20 3,133,770 10,000 Chicago School Reform Board Illinois, Dedicated Tax Ser 1997 (Ambac) 5.75 12/01/27 11,163,276 7,000 New Jersey, 2001 Ser H ## 5.25 07/01/19 7,722,400 5,000 North Carolina, Public School Building Ser 1999 4.60 04/01/17 5,178,000 655 Oregon, Veterans' Welfare Ser 75 6.00 04/01/27 672,384 Pennsylvania, 1,000 First Ser 2003 RITES PA - 1112 A (MBIA) 8.451++ 01/01/18 1,110,240 1,000 First Ser 2003 RITES PA - 1112 B (MBIA) 8.451++ 01/01/19 1,100,110 5,000 Charleston County School District, South Carolina, Ser 2004 A 5.00 02/01/22 5,173,950 5,000 Aldine Independent School District, Texas, Bldg & Refg Ser 2001 5.00 02/15/26 5,015,100 (PSF) 2,500 Mission Consolidated Independent School District, Texas, Bldg 5.50 02/15/25 2,645,225 --------- Ser 2000 (PSF) ------------- 60,345 62,933,077 --------- ------------- Educational Facilities Revenue (3.4%) 1,480 Indiana University, Student Fee Ser K (MBIA) 5.875 08/01/20 1,560,882 1,200 University of North Carolina, Chapel Hill Ser 2003 5.00 12/01/24 1,224,600 5,000 Texas State University, Ser 2000 (FSA) 5.50 03/15/20 5,424,000 --------- ------------- 7,680 8,209,482 --------- ------------- Electric Revenue (12.5%) 5,000 California Department of Water Resources, Power Supply Ser 5.875 05/01/16 5,581,650 2002 A Municipal Electric Authority of Georgia, 2,000 Combustion Turbine Ser 2002 A (MBIA) 5.25 11/01/21 2,114,320 1,500 Combustion Turbine Ser 2002 A (MBIA) 5.25 11/01/22 1,577,265 5,000 Southern Minnesota Municipal Power Agency, Ser 2002 A (Ambac) 5.25 01/01/16 5,532,000 Long Island Power Authority, New York, 4,000 Ser 2003 B 5.25 06/01/13 4,319,400 2,000 Electric System Ser 2004 A (Ambac) (WI) 5.00 09/01/34 1,990,360 South Carolina Public Service Authority, 1,500 2002 Refg Ser A (FSA) 5.125 01/01/20 1,581,390 1,000 2002 Refg Ser A (FSA) 5.125 01/01/21 1,047,490 2,000 1997 Refg Ser A (MBIA) 5.00 01/01/29 2,005,100 1,000 Intermountain Power Agency, Utah, Refg 1996 Ser D (Secondary 5.00 07/01/21 1,019,010 FSA) Lewis County Public Utility District No 1, Washington, 2,000 Cowlitz Falls Hydroelectric Refg Ser 2003 (MBIA) 5.00 10/01/22 2,050,900 1,000 Cowlitz Falls Hydroelectric Refg Ser 2003 (MBIA) 5.00 10/01/23 1,020,210 --------- ------------- 28,000 29,839,095 --------- -------------
PRINCIPAL AMOUNT IN COUPON MATURITY THOUSANDS RATE DATE VALUE --------- -------------------------------------------------------------------- ------ -------- ------------- Hospital Revenue (6.4%) Maryland Health & Higher Educational Facilities Authority, 3,000 Medstar Health Refg Ser 2004 5.375 08/15/24 2,924,520 2,000 University of Maryland Medical Ser 2002 5.75 07/01/17 2,146,340 2,500 University of Maryland Medical Ser 2001 5.25 07/01/34 2,492,025 1,500 New York State Dormitory Authority Revenue, Mental Health Ser 5.25 02/15/17 1,606,290 2003 B 3,000 Lorain County, Ohio, Catholic Healthcare Partners Ser 2001 A 5.75 10/01/18 3,212,070 3,000 Lehigh County General Purpose Authority, Pennsylvania, St 5.25 08/15/23 2,835,960 --------- Lukes Hospital of Bethlehem Ser 2003 ------------- 15,000 15,217,205 --------- ------------- Industrial Development/Pollution Control Revenue (5.5%) 2,000 Chicago, Illinois, Peoples Gas Light & Coke Co Refg 1995 Ser A 6.10 06/02/25 2,095,300 3,500 Michigan Strategic Fund, Detroit Edison Co Ser 2001 C 5.45 09/01/29 3,537,695 2,000 New York State Energy Research & Development Authority, 12.149++ 07/01/26 2,349,640 Brooklyn Union Gas Co 1991 Ser D (AMT) 5,000 Sabine River Authority, Texas, TXU Electric Co Refg Ser 2001 B 5.75 05/01/30 5,284,500 --------- (AMT) (Mandatory Tender 11/01/11) ------------- 12,500 13,267,135 --------- ------------- Mortgage Revenue - Multi-Family (3.1%) 7,140 Illinois Housing Development Authority, 1991 Ser A 8.25 07/01/16 7,353,058 --------- ------------- Mortgage Revenue - Single Family (1.2%) 555 Colorado Housing & Finance Authority, 2000 Ser D-2 (AMT) 6.90 04/01/29 559,923 805 District of Columbia Housing Finance Agency, GNMA 7.10 12/01/24 807,423 Collateralized Ser 1990 B (AMT) 1,500 Pennsylvania Housing Finance Agency, Ser 2000-70 A (AMT) 5.90 04/01/31 1,542,360 --------- ------------- 2,860 2,909,706 --------- ------------- Public Facilities Revenue (4.6%) 5,000 Arizona School Facilities Board, School Impr Ser 2001 5.00 07/01/19 5,220,150 1,585 Colorado Educational & Cultural Facilities Authority, Peak to 5.25 08/15/34 1,612,817 Peak Charter School Refg & Impr Ser 2004 (XLCA) 1,900 Jacksonville, Florida, Sales Tax Ser 2001 (Ambac) 5.50 10/01/18 2,090,931 2,000 Pennsylvania Public School Building Authority, Philadelphia 5.00 06/01/33 1,986,260 --------- School District Ser 2003 (FSA) ------------- 10,485 10,910,158 --------- ------------- Resource Recovery Revenue (1.3%) 3,000 Northeast Maryland Waste Disposal Authority, Montgomery 5.50 04/01/16 3,218,760 --------- County Ser 2003 (AMT) (Ambac) ------------- Transportation Facilities Revenue (31.1%) Alaska International Airports System, 1,500 Ser 2002 B (Ambac) 5.75 10/01/18 1,681,860 1,500 Ser 2002 B (Ambac) 5.75 10/01/19 1,674,990 3,000 Metropolitan Washington DC Airport Authority, Ser 2004 C (FSA) 5.00 10/01/20 3,041,610 (AMT) 10,000 Hillsborough County Port District, Florida, Tampa Port Authority 6.00 06/01/20 10,490,600 Special & Refg Ser 1995 (AMT) (FSA) Georgia State Road & Tollway Authority, 10,000 Ser 2001 5.375 03/01/17 10,968,500 2,000 Ser 2004 5.00 10/01/22 2,081,200 3,000 Ser 2004 5.00 10/01/23 3,103,530 2,000 Chicago, Illinois, O' Hare Int'l Airport Third Lien Ser 2003 B-2 5.75 01/01/23 2,146,460 (AMT) (FSA) 5,000 Massachusetts Bay Transportation Authority, Assess 2000 5.25 07/01/30 5,104,750 Ser A 2,000 Clark County, Nevada, Airport Revenue Ser 2004 A (AMT) (WI) 5.50 07/01/22 2,110,180 5,000 New Jersey Turnpike Authority, Ser 2003 A (Ambac) 5.00 01/01/30 5,030,200
PRINCIPAL AMOUNT IN COUPON MATURITY THOUSANDS RATE DATE VALUE --------- -------------------------------------------------------------------- ------ -------- ------------- Metropolitan Transportation Authority, New York, 3,000 State Service Contract Ser 2002 A (MBIA) 5.50 01/01/19 3,283,170 3,000 State Service Contract Refg Ser 2002 B (MBIA) 5.50 07/01/20 3,270,870 4,000 Port Authority of New York & New Jersey, Cons 135th Ser (XLCA) 5.00 09/15/29 4,005,000 3,000 Triborough Bridge & Tunnel Authority, New York, Ser 2001 A 5.00 01/01/32 2,975,550 5,000 Pennsylvania State Turnpike, Ser A 5.00 12/01/34 5,006,050 5,000 Dallas-Fort Worth Int'l Airport, Texas, Ser 2003 A (AMT) (FSA) 5.375 11/01/22 5,209,350 3,000 Port of Seattle, Washington, Sub Lien Ser 1999 A (FGIC) 5.25 09/01/22 3,135,480 --------- ------------- 71,000 74,319,350 --------- ------------- Water & Sewer Revenue (32.3%) 1,920 Los Angeles, California, Department of Water & Power, Ser C 5.00 07/01/23 1,981,325 4,000 Oxnard, California Financing Authority, Redwood Trunk Sewer & 5.00 06/01/29 4,010,520 Headworks Ser 2004 A 5,000 Colorado Springs, Colorado, Utilities Ser 2001 A 5.00 11/15/29 5,019,350 2,000 Martin County, Florida, Utilities Ser 2001 (FGIC) 5.00 10/01/26 2,020,580 8,000 Tampa Bay Water, Florida, Ser 2001 B (FGIC) 5.00 10/01/31 8,020,960 Louisville & Jefferson County Metropolitan Sewer District, Kentucky, 2,925 Ser 2001 A (MBIA) 5.375 05/15/20 3,138,437 3,075 Ser 2001 A (MBIA) 5.375 05/15/21 3,281,455 5,000 Ser 1999 A (FGIC) 5.75 05/15/33 5,373,550 1,585 Massachusetts Water Resources Authority, 2000 Ser A (FGIC) 6.00 08/01/13 1,817,218 2,925 Las Vegas Water District, Nevada, Impr and Refg Ser 2003 A 5.25 06/01/22 3,072,800 (FGIC) New York City Municipal Water Finance Authority, New York, 3,000 2003 Ser A 5.375 06/15/18 3,235,170 4,000 1998 Ser D (MBIA) 4.75 06/15/25 3,945,040 5,000 2002 Ser G (FSA) 5.00 06/15/34 5,000,000 7,500 Portland, Oregon, Sewer 2000 Ser A (FGIC) 5.75 08/01/19 8,370,000 4,000 Charleston, South Carolina, Refg Cap Impr Ser 1998 (FGIC) 4.50 01/01/24 3,851,840 Houston, Texas, Utilities System Revenue, 10,000 1st Lien Ser A 5.25 05/15/23 10,511,100 4,500 1st Lien Ser A 5.25 05/15/25 4,683,150 --------- ------------- 74,430 77,332,495 --------- ------------- Other Revenue (3.1%) 5,000 California Economic Recovery, Ser A 5.00 07/01/10 5,251,650 2,000 New York City Transitional Finance Authority, New York, Refg 5.50 11/01/26 2,214,980 --------- 2003 Ser A ------------- 7,000 7,466,630 --------- ------------- Refunded (8.1%) 7,250 Atlanta, Georgia, Airport Ser 2000 A (FGIC) 5.50 01/01/10+ 8,147,985 7,000 Hawaii, Airports Second Ser of 1991 (AMT) (ETM) 6.90 07/01/12 8,211,840 3,000 Salt Lake City, Utah, IHC Hospitals Inc Refg Ser 1991 (Ambac) 11.847++ 05/15/20 3,026,280 --------- (ETM) ------------- 17,250 19,386,105 --------- ------------- 316,690 TOTAL TAX-EXEMPT MUNICIPAL BONDS (Cost $317,371,252) 332,362,256 --------- ------------- SHORT-TERM TAX-EXEMPT MUNICIPAL OBLIGATIONS (6.2%) 1,480 Idaho Health Facilities Authority, St Luke's Regional Medical 1.12* 07/01/30 1,480,000 Center Ser 2000 (FSA) (Demand 08/02/04) 11,240 Indiana Health Facility Financing Authority, Clarian Health 1.12* 03/01/30 11,240,000 Obligated Group Ser 2000 B (Demand 08/02/04) 2,000 Kemmerer, Wyoming, Pollution Control Authority Exxon Proj Ser 1.04* 11/01/14 2,000,000 --------- 1984 (Demand 08/02/04) ------------- 14,720 TOTAL SHORT-TERM TAX-EXEMPT MUNICIPAL OBLIGATIONS (Cost $14,720,000) 14,720,000 --------- ------------- $ 331,410 TOTAL INVESTMENTS (Cost $332,091,252) (a)(b) 145.1% 347,082,256 =========
PRINCIPAL AMOUNT IN COUPON MATURITY THOUSANDS RATE DATE VALUE --------- -------------------------------------------------------------------- ------ -------- ------------- LIABILITIES IN EXCESS OF OTHER ASSETS (1.1) (2,680,486) PREFERRED SHARES OF BENEFICIAL INTEREST (44.0) (105,160,419) ------ ------------- NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 100.0% $ 239,241,351 ====== =============
------------------- Note: The categories of investments are shown as a percentage of net assets applicable to common shareholders. AMT Alternative Minimum Tax. ETM Escrowed to maturity. PSF Texas Permanent School Fund Guarantee Program. RITES Residual Interest Tax-Exempt Securities. ## A portion of this security has been physically segregated in connection with open futures contracts in an amount equal to $260,000. + Prerefunded to call date shown. ++ Current coupon rate for inverse floating rate municipal obligations. This rate resets periodically as the auction rate on the related security changes. Positions in inverse floating rate municipal obligations have total value of $7,586,270 which represents 3.2 % of net assets applicable to common shareholders. * Current coupon of variable rate demand obligation. WI Security purchased on a when-issued basis. (a) Securities have been designated as collateral in an amount equal to $38,170,947 in connection with open futures contracts and securities purchased on a when-issued basis. (b) The aggregate cost for federal income tax purposes approximates the cost for book purposes. The aggregate gross unrealized appreciation is $15,681,413 and the aggregate gross unrealized depreciation is $690,409 , resulting in net unrealized appreciation of $14,991,004. Bond Insurance: ------------------- Ambac Ambac Assurance Corporation. FGIC Financial Guaranty Insurance Company. FSA Financial Security Assurance Inc. MBIA Municipal Bond Investors Assurance Corporation. XLCA XL Capital Assurance Inc. Futures Contracts Open at July 31, 2004:
DESCRIPTION, NUMBER OF DELIVERY MONTH UNDERLYING FACE UNREALIZED CONTRACTS LONG/SHORT AND YEAR AMOUNT AT VALUE DEPRECIATION --------- ---------- -------- --------------- ------------ 100 Short U.S. Treasury Note 5 yr $(10,950,000) $(180,567) September/2004 200 Short U.S. Treasury Note 10 yr (22,143,750) (571,801) September/2004 --------- Total unrealized depreciation $(752,368) =========
Geographic Summary of Investments Based on Market Value as a Percent of Total Investments Alaska 2.2% Illinois 6.5% New York 11.0% Wyoming 0.6% --- Arizona 1.5 Indiana 3.7 North Carolina 1.8 California 7.3 Kentucky 3.4 Ohio 0.9 Colorado 2.1 Maryland 3.1 Oregon 2.6 District of Columbia 1.1 Massachusetts 2.0 Pennsylvania 3.9 Florida 9.5 Michigan 1.0 South Carolina 3.9 Georgia 8.1 Minnesota 1.6 Texas 11.2 Hawaii 2.4 Nevada 1.5 Utah 1.2 Idaho 0.4 New Jersey 3.7 Washington 1.8 Total 100.0% ======
ITEM 2. CONTROLS AND PROCEDURES. (a) The Trust's principal executive officer and principal financial officer have concluded that the Trust's disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Trust's in this Form N-Q was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, based upon such officers' evaluation of these controls and procedures as of a date within 90 days of the filing date of the report. (b) There were no changes in the Trust's internal control over financial reporting that occurred during the registrant's fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Trust's internal control over financial reporting. ITEM 3. EXHIBITS. (a) A separate certification for each principal executive officer and principal financial officer of the registrant are attached hereto. 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Morgan Stanley Quality Municipal Investment Trust /s/ Ronald E. Robison Ronald E. Robison Principal Executive Officer September 20, 2004 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 September 20, 2004 /s/ Francis Smith Francis Smith Principal Financial Officer September 20, 2004 3