N-Q 1 y39205bnvq.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) 522 Fifth Avenue, New York, New York 10036 (Address of principal executive offices) (Zip code)
Ronald E. Robison 522 Fifth Avenue, New York, New York 10036 (Name and address of agent for service) Registrant's telephone number, including area code: 212-296-6990 Date of fiscal year end: October 31, 2007 Date of reporting period: July 31, 2007 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, 2007 (UNAUDITED)
PRINCIPAL AMOUNT IN COUPON MATURITY THOUSANDS RATE DATE VALUE --------- ------ -------- ------------- Tax-Exempt Municipal Bonds (158.1%) ALABAMA (1.0%) $ 2,000 Jefferson County, School Ser 2004 A 5.50% 01/01/22 $ 2,141,940 ------------- ALASKA (3.1%) 4,000 North Slope Borough, Ser 2000 B (MBIA) 0.00 06/30/09 3,713,880 3,000 Northern Tobacco Securitization Corporation, Asset Backed Ser 2006 A 5.00 06/01/46 2,744,610 ------------- 6,458,490 ------------- CALIFORNIA (21.2%) 5,000 California Economic Recovery, Ser 2004 A 5.00 07/01/16 5,215,350 3,000 California Health Facilities Financing Authority, Cedars-Sinai Medical Center Ser 2005 5.00 11/15/34 3,021,030 2,000 California Infrastructure & Economic Development Bank, The Scripps Research Institute Ser 2005 A 5.00 07/01/29 2,061,200 3,000 California Statewide Communities Development Authority, John Muir Health Ser 2006 A 5.00 08/15/32 3,019,440 3,000 California, Various Purpose dtd 05/01/03 5.00 02/01/24 3,106,020 3,000 Golden State Tobacco Securitization Corporation, Enhanced Asset Backed Ser 2005 A (Ambac) 5.00 06/01/29 3,057,030 2,000 Golden State Tobacco Securitization Corporation, Enhanced Asset Backed Ser 2005 A (Ambac) 5.00 06/01/45 2,012,100 4,000 Golden State Tobacco Securitization Corporation, Enhanced Asset Backed Ser 2007 A-1 ### 5.125 06/01/47 4,125,420 4,000 Golden State Tobacco Securitization Corporation Enhanced Asset Backed Ser 2007 A-1 ### 5.75 06/01/47 3,737,080 1,920 Los Angeles Department of Water & Power, Water 2004 Ser C (MBIA) 5.00 07/01/23 2,018,362 2,000 Los Angeles, California, Ser 2004 A (MBIA) 5.00 09/01/24 2,104,600 4,000 Oxnard Financing Authority, Redwood Trunk Sewer & Headworks Ser 2004 A (FGIC) 5.00 06/01/29 4,136,520 4,000 San Francisco City & County, Laguna Honda Hospital Ser 2005 I (FSA) ### 5.00 06/15/30 4,130,020 2,000 Tobacco Securitization Authority of Northern California, Sacramento County Tobacco Securitization Corporation Ser 2005 A-1 5.00 06/01/37 1,858,200 ------------- 43,602,372 ------------- COLORADO (4.1%) 1,585 Colorado Educational & Cultural Facilities Authority, Peak to Peak Charter School Refg & Impr Ser 2004 (XLCA) 5.25 08/15/34 1,660,383 250 Colorado Housing & Finance Authority, 2000 Ser D-2 (AMT) 6.90 04/01/29 258,677 5,000 Colorado Springs, Utilities Ser 2001 A 5.00 11/15/29 5,105,000 1,500 University of Colorado Hospital Authority, Ser 2006 A 5.00 11/15/37 1,464,435 ------------- 8,488,495 ------------- DISTRICT OF COLUMBIA (2.5%) 2,000 District of Columbia, Ballpark, Ser 2006 B-1 (FGIC) 5.00 02/01/31 2,073,560 3,000 Metropolitan Washington Airports Authority, District of Columbia & Virginia, Ser 2004 C-1 (AMT) (FSA) # 5.00 10/01/20 3,094,560 ------------- 5,168,120 ------------- FLORIDA (15.7%) 6,890 Florida State Board of Education, Capital Outlay Refg Ser 2001 D 5.375 06/01/18 7,282,041 3,000 Highlands County Health Facilities Authority, Adventist Health Refg Ser 2005 C 5.00 11/15/31 3,006,630
1,900 Jacksonville, Sales Tax Ser 2001 (Ambac) 5.50 10/01/18 2,009,402 2,000 Martin County, Utilities Ser 2001 (FGIC) 5.00 10/01/26 2,049,700 1,000 Miami-Dade County, Ser 2005 A (MBIA) 0.00## 10/01/30 759,300 8,000 South Miami Health Facilities Authority, Baptist Health Ser 2007 ### 5.00 08/15/42 8,034,320 1,000 St Johns County Industrial Development Authority, Glenmoor Ser 2006 A 5.375 01/01/40 996,600 8,000 Tampa Bay Water, Ser 2001 B (FGIC) 5.00 10/01/31 8,142,320 ------------- 32,280,313 ------------- GEORGIA (11.0%) 3,000 Atlanta, Airport Passenger Facilities Charge Airport Ser 2004 J (FSA) 5.00 01/01/34 3,086,910 10,000 Georgia Road & Tollway Authority, Ser 2001 5.375 03/01/17 10,599,500 2,000 Georgia Road & Tollway Authority, Ser 2004 5.00 10/01/22 2,087,120 3,000 Georgia Road & Tollway Authority, Ser 2004 5.00 10/01/23 3,130,680 2,000 Municipal Electric Authority of Georgia, Combustion Turbine Ser 2002 A (MBIA) 5.25 11/01/21 2,104,620 1,500 Municipal Electric Authority of Georgia, Combustion Turbine Ser 2002 A (MBIA) 5.25 11/01/22 1,578,465 ------------- 22,587,295 ------------- HAWAII (3.7%) 7,000 Hawaii, Airports Second Ser of 1991 (AMT) (ETM) 6.90 07/01/12 7,551,880 ------------- IDAHO (0.5%) 1,000 Madison County Industrial Development Authority, Madison Memorial Hospital Ser 2006 COPs 5.25 09/01/37 990,250 ------------- ILLINOIS (2.0%) 2,000 Chicago, O' Hare Int'l Airport Third Lien Ser 2003 B-2 (AMT) (FSA) 5.75 01/01/23 2,165,700 2,000 Illinois Finance Authority, Fullerton Village Ser 2004 A 5.125 06/01/35 1,982,280 ------------- 4,147,980 ------------- INDIANA (3.0%) 3,000 Indiana Health & Educational Facility Financing Authority, Clarian Health Ser 2006 A 5.25 02/15/40 3,040,080 3,000 Indiana Health Facilities Financing Authority, Community Health Ser 2005 A (Ambac) 5.00 05/01/35 3,090,090 ------------- 6,130,170 ------------- IOWA (1.7%) 1,275 Coralville, Urban Renewal Ser 2007 C 5.00 06/01/47 1,242,462 2,200 Coralville Marriot Hotel & Convention Center Ser 2006 D COPs 5.25 06/01/26 2,272,050 ------------- 3,514,512 ------------- KENTUCKY (5.6%) 5,000 Louisville & Jefferson County Metropolitan Sewer District, Ser 1999 A (FGIC) 5.75 05/15/33 5,239,400 2,925 Louisville & Jefferson County Metropolitan Sewer District Ser 2001 A (MBIA) 5.375 05/15/20 3,098,833 3,075 Louisville & Jefferson County Metropolitan Sewer District Ser 2001 A (MBIA) 5.375 05/15/21 3,253,411 ------------- 11,591,644 ------------- MARYLAND (7.0%) 1,000 Baltimore County, Oak Crest Village Ser 2007 A 5.00 01/01/37 984,060
1,500 Maryland Health & Higher Educational Facilities Authority, King Farm Presbyterian Community 2006 Ser B 5.00 01/01/17 1,494,930 3,000 Maryland Health & Higher Educational Facilities Authority, Medstar Health Refg Ser 2004 5.375 08/15/24 3,107,370 2,500 Maryland Health & Higher Educational Facilities Authority, University of Maryland Medical Ser 2001 5.25 07/01/34 2,525,850 2,000 Maryland Health & Higher Educational Facilities Authority, University of Maryland Medical Ser 2002 5.75 07/01/17 2,108,180 1,000 Maryland Health & Higher Educational Facilities Authority, University of Maryland Medical Ser 2006 A 5.00 07/01/41 995,100 3,000 Northeast Maryland Waste Disposal Authority, Montgomery County Ser 2003 (AMT) (Ambac) 5.50 04/01/16 3,185,040 ------------- 14,400,530 ------------- MASSACHUSETTS (0.5%) 575 Massachusetts Bay Transportation Authority, Assess 2000 Ser A 5.25 07/01/10+ 598,195 415 Massachusetts Bay Transportation Authority, Assess 2000 Ser A 5.25 07/01/30 427,865 ------------- 1,026,060 ------------- MICHIGAN (3.2%) 3,000 Michigan State Hospital Finance Authority, Henry Ford Health Refg Ser 2006 A 5.25 11/15/46 3,044,490 3,500 Michigan Strategic Fund, Detroit Edison Co Ser 2001 C 5.45 09/01/29 3,605,000 ------------- 6,649,490 ------------- MISSOURI (0.9%) 915 Fenton, Gravois Bluffs Refg Ser 2006 4.50 04/01/21 916,043 1,000 Missouri Health & Educational Facilities Authority, Lutheran Senior Services Ser 2005 A 5.375 02/01/35 1,026,040 ------------- 1,942,083 ------------- NEBRASKA (1.0%) 2,000 Nebraska Public Power District, Ser 2005 C (FGIC) 5.00 01/01/41 2,060,160 ------------- NEVADA (3.0%) 2,000 Clark County, Airport Sub Lien Ser 2004 A (AMT) (FGIC) 5.50 07/01/22 2,126,220 2,925 Las Vegas Water District, Impr and Refg Ser 2003 A (FGIC) 5.25 06/01/22 3,083,067 1,000 Reno, Renown Regional Medical Center Ser 2007 A 5.25 06/01/37 1,009,490 ------------- 6,218,777 ------------- NEW JERSEY (8.3%) 1,000 New Jersey Economic Development Authority, Cigarette Tax Ser 2004 5.75 06/15/34 1,060,880 5,000 New Jersey Turnpike Authority, Ser 2003 A (Ambac) 5.00 01/01/30 5,169,350 7,000 New Jersey, 2001 Ser H * 5.25 07/01/19 7,638,680 3,000 Tobacco Settlement Financing Corporation, Ser 2007-1A 4.625 06/01/26 2,695,920 3,000 Tobacco Settlement Financing Corporation, Ser 2007-1B 0.00 06/01/41 443,910 ------------- 17,008,740 ------------- NEW YORK (15.1%) 2,000 Long Island Power Authority, Ser 2004 A (Ambac) 5.00 09/01/34 2,063,440 3,000 Metropolitan Transportation Authority, State Service Contract Refg Ser 2002 B (MBIA) 5.50 07/01/20 3,203,760 3,000 Metropolitan Transportation Authority, State Service Contract Ser 2002 A (MBIA) 5.50 01/01/19 3,203,760 3,000 Nassau County Tobacco Settlement Corporation, Asset Backed Ser 2006 A-3 5.125 06/01/46 2,943,750 2,000 New York City Industrial Development Agency, Yankee Stadium Ser 2006 (FGIC) 5.00 03/01/46 2,059,380 4,000 New York City Municipal Water Finance Authority, 1998 Ser D (MBIA) 4.75 06/15/25 4,022,920
5,000 New York City Municipal Water Finance Authority, 2002 Ser G (FSA) 5.00 06/15/34 5,098,350 3,000 New York City Municipal Water Finance Authority, 2003 Ser A 5.375 06/15/18 3,178,770 2,000 New York City Transitional Finance Authority, Refg 2003 Ser A 5.50## 11/01/26 2,124,320 2,000 New York State Energy & Research Development Authority, Brooklyn Union Gas Co 1991 Ser B (AMT) 9.726++ 07/01/26 2,110,720 1,000 Seneca Nation of Indians Ser 2007 A ** 5.00 12/01/23 983,820 ------------- 30,992,990 ------------- NORTH CAROLINA (1.1%) 1,100 North Carolina Medical Care Commission, Salemtowne Refg Ser 2006 5.10 10/01/30 1,075,789 1,200 University of North Carolina, Chapel Hill Ser 2003 5.00 12/01/24 1,245,060 ------------- 2,320,849 ------------- OHIO (1.6%) 3,000 Lorain County, Catholic Healthcare Partners Ser 2001 A 5.75 10/01/18 3,181,830 ------------- PENNSYLVANIA (7.1%) 2,000 Allegheny County Hospital Development Authority, West Penn Allegheny Health Ser 2007 A ### 5.375 11/15/40 1,965,750 5,000 Lehigh County General Purpose Authority, St Luke's Hospital of Bethlehem Ser 2003 5.25 08/15/13+ 5,331,750 5,000 Pennsylvania Turnpike Commission, Ser A 2004 (Ambac) 5.00 12/01/34 5,196,150 2,000 Pennsylvania, First Ser 2003 (MBIA) ### 5.00 01/01/13+ 2,110,920 ------------- 14,604,570 ------------- SOUTH CAROLINA (5.8%) 3,000 Charleston Educational Excellence Financing Corporation, Charleston County School District Ser 2005 5.25 12/01/29 3,162,180 40 Lexington County South Carolina Health Services 5.00 11/01/16 41,176 2,000 South Carolina Public Service Authority, Santee Cooper, 1997 Refg Ser A (MBIA) 5.00 01/01/29 2,026,560 1,500 South Carolina Public Service Authority, Santee Cooper, 2002 Refg Ser A (FSA) 5.125 01/01/20 1,573,965 1,000 South Carolina Public Service Authority, Santee Cooper, 2002 Refg Ser A (FSA) 5.125 01/01/21 1,047,450 4,000 South Carolina Public Service Authority, Santee Cooper, 2003 Refg Ser A (Ambac) 5.00 01/01/27 4,136,320 ------------- 11,987,651 ------------- TENNESSEE (4.5%) 5,000 Sullivan County Health Educational & Housing Facilities Board, Wellmont Health Ser 2006 C 5.25 09/01/36 5,026,650 4,000 Tennessee Energy Acquisition Corporation, Ser 2006 A ### 5.25 09/01/19 4,195,260 ------------- 9,221,910 ------------- TEXAS (16.0%) 3,910 Aldine Independent School District, Bldg & Refg Ser 2001 (PSF) 5.00 02/15/11+ 4,061,317 1,090 Aldine Independent School District, Bldg & Refg Ser 2001 (PSF) 5.00 02/15/26 1,114,776 2,000 Alliance Airport Authority, Federal Express Corp Refg Ser 2006 (AMT) 4.85 04/01/21 1,961,680 1,000 Austin, Water & Wastewater ROLS RRII R-674 (FSA) 9.134++ 05/15/27 1,119,620 5,000 Dallas-Fort Worth International Airport, Ser 2003 A (AMT) (FSA) 5.375 11/01/22 5,232,350 10,000 Houston, Combined Utility First Lien Refg 2004 Ser A (FGIC) 5.25 05/15/23 10,607,900 4,500 Houston, Combined Utility First Lien Refg 2004 Ser A (MBIA) 5.25 05/15/25 4,773,555 3,000 Sabine River Authority, TXU Electric Co Refg Ser 2001 B (AMT) (Mandatory Tender 11/01/11) 5.75 05/01/30 3,047,640
1,000 Tarrant County Cultural Educational Facilities Finance Corp, Air Force Village II Inc Ser 2007 5.125 05/15/37 993,870 ------------- 32,912,708 ------------- UTAH (1.5%) 3,000 Salt Lake City IHC Hospital Inc Refg Ser 1991 (Ambac) 9.566++ 05/15/20 3,014,070 ------------- VIRGINIA (0.9%) 1,750 Fairfax County Economic Dev Authority 5.125 10/01/37 1,739,238 ------------- WASHINGTON (5.5%) 2,000 Grant County Public Utilities District #2, Wanapum 2005 Ser A (FGIC) 5.00 01/01/29 2,063,020 2,000 Lewis County Public Utility District #1, Cowlitz Falls Refg Ser 2003 (MBIA) 5.00 10/01/22 2,072,820 4,010 Port of Seattle, Passenger Facility Ser 1998 A (MBIA) ### 5.00 12/01/23 4,079,020 3,000 Port of Seattle, Sub Lien Ser 1999 A (FGIC) 5.25 09/01/22 3,145,530 -------- ------------- 11,360,390 ------------- TOTAL TAX-EXEMPT MUNICIPAL BONDS 318,450 (COST $318,035,582) 325,295,507 -------- ------------- SHORT-TERM INVESTMENT (a) (3.4%) INVESTMENT COMPANY 7,059 Morgan Stanley Institutional Liquidity Tax-Exempt Portfolio - Institutional Class (COST $7,059,172) 7,059,172 -------- ------------- 325,509 TOTAL INVESTMENTS (Cost $325,094,754) 332,354,679 -------- ------------- FLOATING RATE NOTE OBLIGATIONS RELATED TO SECURITIES HELD (-12.0%) (24,510) Notes with interest rates ranging from 3.62% to 3.69% at July 31, 2007 and contractual maturities of collateral ranging from 01/19/19 to 06/01/47 (b) +++ (Cost $(24,640,020)) (24,640,020) -------- ------------- 300,999 TOTAL NET INVESTMENTS ======== (COST $300,454,734) (c) (d) 149.5% 307,714,659 OTHER ASSETS IN EXCESS OF LIABILITIES 1.5 3,211,425 PREFERRED SHARES OF BENEFICIAL INTEREST (51.0) (105,048,594) ------ ------------- NET ASSETS $100.0% $ 205,877,490 ====== =============
---------- 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. PSF Texas Permanent School Fund Guarantee Program. ROLS Reset Option Longs. # Joint exemption in locations shown. ## Security is a "step-up" bond where the coupon increases on a predetermined future date. ### Underlying security related to inverse floaters entered into by the Trust. + 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 a total value of $6,244,410, which represents 3.0% of net assets applicable to common shareholders. +++ Floating rate note obligations related to securities held. The interest rates shown reflect the rates in effect at July 31 2007. * All of this security has been physically segregated in connection with open futures contract in the amount of $67,500. ** Resale is restricted to qualified Institutional investors. (a) The Trust invests in Morgan Stanley Institutional Liquidity Tax-Exempt Portfolio - Institutional Class, an open-end management investment company managed by the Investment Adviser. Investment Advisory fees paid by the Trust are reduced by an amount equal to the advisory and administrative service fees paid by Morgan Stanley Institutional Liquidity Tax-Exempt Portfolio - Institutional Class with respect to assets invested by the Trust in Morgan Stanley Institutional Liquidity Tax-Exempt Portfolio - Institutional Class. Income distributions earned by the Trust totaled $24,349 for the period ended July 31, 2007. (b) Floating Rate Note Obligations Related to Securities Held - The Trust enters into transactions in which it transfers to Dealer Trusts ("Dealer Trusts"), fixed rate bonds in exchange for cash and residual interests in the Dealer Trusts' assets and cash flows, which are in the form of inverse floating rate investments. The Dealer Trusts fund the purchases of the fixed rate bonds by issuing floating rate notes to third parties and allowing the Trust to retain residual interest in the bonds. The Trust enters into shortfall agreements with the Dealer Trusts which commit the Trust to pay the Dealer Trusts, in certain circumstances, the difference between the liquidation value of the fixed rate bonds held by the Dealer Trusts and the liquidation value of the floating rate notes held by third parties, as well as any shortfalls in interest cash flows. The residual interests held by the Trust (inverse floating rate investments) include the right of the Trust (1) to cause the holders of the floating rate notes to tender their notes at par at the next interest rate reset date, and (2) to transfer the municipal bond from the Dealer Trusts to the Trust, thereby collapsing the Dealer Trusts. The Trust accounts for the transfer of bonds to the Dealer Trusts as secured borrowings, with the securities transferred remaining in the Trust's investment assets, and the related floating rate notes reflected as Trust liabilities. The notes issued by the Dealer Trust have interest rates that reset weekly and the floating rate note holders have the option to tender their notes to the Dealer Trust for redemption at par at each reset date. At July 31, 2007, Trust investments with a value of $32,377,790 are held by the Dealer Trust and serve as collateral for the $24,640,020 in floating rate note obligations outstanding at that date. Contractual maturities of the floating rate note obligations and interest rates in effect at July 31, 2007 are presented in the "Portfolio of Investments". (c) Securities have been designated as collateral in an amount equal to $6,993,516 in connection with open futures contracts. (d) The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is $9,115,832 and the aggregate gross unrealized depreciation is $1,855,907, resulting in net unrealized appreciation of $7,259,925 . 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, 2007:
NUMBER OF DESCRIPTION, DELIVERY UNDERLYING FACE UNREALIZED CONTRACTS LONG/SHORT MONTH AND YEAR AMOUNT AT VALUE DEPRECIATION --------- ---------- ----------------------------- --------------- ------------ 30 Short U.S. Treasury Notes 10 Year, September 2007 (3,222,656) $(10,630) 35 Short U.S. Treasury Bonds September 2007 (3,852,188) (3,377) -------- Total Unrealized Depreciation $(14,007) ========
ITEM 2. CONTROLS AND PROCEDURES. (a) The Trust's principal executive officer and principal financial officer have concluded that the Trust's disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Trust's in this Form N-Q was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, based upon such officers' evaluation of these controls and procedures as of a date within 90 days of the filing date of the report. (b) There were no changes in the Trust's internal control over financial reporting that occurred during the registrant's fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Trust's internal control over financial reporting. ITEM 3. EXHIBITS. (a) A separate certification for each principal executive officer and principal financial officer of the registrant are attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Morgan Stanley Quality Municipal Investment Trust /s/ Ronald E. Robison Ronald E. Robison Principal Executive Officer September 20, 2007 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, 2007 /s/ Francis Smith Francis Smith Principal Financial Officer September 20, 2007