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<SEC-DOCUMENT>0000950123-08-003420.txt : 20080327
<SEC-HEADER>0000950123-08-003420.hdr.sgml : 20080327
<ACCEPTANCE-DATETIME>20080327091951
ACCESSION NUMBER: 0000950123-08-003420
CONFORMED SUBMISSION TYPE: N-Q
PUBLIC DOCUMENT COUNT: 2
CONFORMED PERIOD OF REPORT: 20080131
FILED AS OF DATE: 20080327
DATE AS OF CHANGE: 20080327
EFFECTIVENESS DATE: 20080327
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: MORGAN STANLEY INSURED CALIFORNIA MUNICIPAL SEC
CENTRAL INDEX KEY: 0000913342
IRS NUMBER: 000000000
STATE OF INCORPORATION: MA
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: N-Q
SEC ACT: 1940 Act
SEC FILE NUMBER: 811-07111
FILM NUMBER: 08713582
BUSINESS ADDRESS:
STREET 1: C/O MORGAN STANLEY TRUST
STREET 2: HARBORSIDE FINANCIAL CENTER, PLAZA TWO
CITY: JERSEY CITY
STATE: NJ
ZIP: 07311
BUSINESS PHONE: (212) 869-6397
FORMER COMPANY:
FORMER CONFORMED NAME: MORGAN STANLEY DEAN WITTER INSURED CALIFORNIA MUNICIPAL SEC
DATE OF NAME CHANGE: 19981221
FORMER COMPANY:
FORMER CONFORMED NAME: INTERCAPITAL INSURED CALIFORNIA MUNICIPAL SECURITIES TRUST
DATE OF NAME CHANGE: 19950410
FORMER COMPANY:
FORMER CONFORMED NAME: INTERCAPITAL CALIFORNIA INSURED MUNICIPAL SECURITIES
DATE OF NAME CHANGE: 19931013
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-Q
<SEQUENCE>1
<FILENAME>y50487cnvq.txt
<DESCRIPTION>FORM N-Q
<TEXT>
<PAGE>
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: 811-07111
Morgan Stanley Insured California Municipal Securities
(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, 2008
Date of reporting period: January 31, 2008
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:
<PAGE>
MORGAN STANLEY INSURED CALIFORNIA MUNICIPAL SECURITIES
PORTFOLIO OF INVESTMENTS JANUARY 31, 2008 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- --------- ------ -------- -----------
<S> <C> <C> <C> <C>
TAX-EXEMPT MUNICIPAL BONDS (96.5%)
CALIFORNIA (94.5%)
$2,000 Anaheim Public Financing Authority, Distribution Electric Ser 2007-A
(MBIA Insd) 4.50% 10/01/37 $ 1,903,960
1,000 Anaheim Public Financing Authority, Generation Refg Electric Ser
2002-B (FSA Insd) 5.25 10/01/18 1,088,850
2,000 California Department of Veterans Affairs, Home Purchase 2002
Ser A (AMBAC Insd) 5.35 12/01/27 2,067,900
1,500 California Department of Water Resources, Central Valley Ser Y
(FGIC) 5.25 12/01/19 1,629,285
2,000 California Infrastructure & Economic Development Bank, Bay Area Toll
Bridges Seismic Retrofit First Lien Ser 2003 A (FGIC Insd) (ETM) 5.00 07/01/29 2,221,580
1,000 California, Ser 2007 (MBIA) 4.25 08/01/33 916,160
1,000 California State University, Ser 2005 A (AMBAC Insd) 5.00 11/01/35 1,028,391
505 California, Various Purpose Dtd 03/01/94 (FSA Insd) 5.50 03/01/20 506,050
400 California Veterans Ser BH (AMT) (FSA Insd) 5.40 12/01/16 412,448
1,000 Capistrano Unified School District, Community Facilities District
#98-2 Ladera Ser 2005 (FGIC Insd) 5.00 09/01/29 999,300
2,000 East Bay Municipal Utility District Water Ser 2001 (MBIA Insd) 5.00 06/01/26 2,167,700
3,025 Fairfield Calif Ctfs Partn-Zero Coupon 0.00 04/01/30 956,959
1,000 Golden State Tobacco Securitization Corporation, California,
Enhanced Asset Backed Ser 2005 A (FGIC Insd) 5.00 06/01/38 991,440
1,280 Huntington Beach Union High School District Ser 2004 (FSA Insd) 5.00 08/01/26 1,349,709
1,110 Kern County Board of Education Refg 2006 Ser A COPs (MBIA Insd) 5.00 06/01/31 1,126,928
La Quinta Financing Authority, Local Agency 2004 Ser A (AMBAC Insd) 5.25 09/01/24 1,173,018
1,030 Los Angeles, Ser 2004 A (MBIA Insd) 5.00 09/01/24 1,083,519
1,000 Los Angeles County Metropolitan Transportation Authority Sales Tax
Ser 2000 A (FGIC Insd) 4.50 07/01/29+ 996,560
1,000 Los Angeles Department of Water & Power, 2001 Ser A (FSA Insd) 5.25 07/01/21 1,057,850
800 Los Angeles Municipal Improvement Corporation, Police
Headquarters Ser 2006 - A (FGIC Insd) 4.75 01/01/31 775,520
1,000 Los Angeles Wastewater Refg Ser 2003 B (FSA Insd) 5.00 06/01/22 1,061,360
1,000 Metropolitan Water District of Southern California, 2003 Ser B-2
(FGIC Insd) 5.00 10/01/27 1,036,600
1,000 Oxnard Financing Authority, Wastewater 2004 Ser A (FGIC Insd) 5.00 06/01/29 1,031,960
1,000 Rancho Mirage Redevelopment Agency, Ser 2003 A (MBIA Insd) 5.00 04/01/33 1,002,410
1,235 Rocklin California Uni School District Community 0.00 09/01/34 305,057
1,255 Rocklin California Uni School District Community 0.00 09/01/35 293,319
1,230 Rocklin California Uni School District Community 0.00 09/01/36 271,965
1,025 Rocklin California Uni School District Community 0.00 09/01/37 213,743
1,000 Sacramento County Sanitation Districts Financing Authority, Refg Ser
2006 (FGIC Insd) 5.00 12/01/28 1,040,360
180 Sacramento City Financing Authority, 1999 Solid Waste &
Redevelopment (AMBAC Insd) 5.75 12/01/22 190,699
2,000 Sacramento City Financing Authority, Water & Capital Improvement
2001 Ser A (AMBAC Insd) 5.00 12/01/26+ 2,167,700
1,000 San Diego County Water Authority, California, Ser 2004 A COPs (FSA
Insd) 5.00 05/01/29 1,027,770
1,000 San Francisco City & County, City Buildings Ser 2007 A COPs (FGIC
Insd) 4.50 09/01/37 916,670
340 San Francisco City & County, Laguna Honda Hospital RITES PA 1387
(FSA Insd) 11.589# 06/15/30 390,585
2,000 San Francisco Public Utilities Commission, Water Refg Ser A 2001
(FSA Insd) 5.00 11/01/31 2,045,440
1,000 San Jose, Airport Ser 2001 A (FGIC Insd) 5.00 03/01/25 1,029,580
1,000 Simi Valley Public Financing Authority, Ser 2004 COPs (AMBAC Insd) 5.00 09/01/30 1,010,850
1,000 Southern California Public Power Authority, Transmission Refg Ser
2002 A (FSA Insd) 5.25 07/01/18 1,085,280
1,000 University of California, Ser 2007- J (FSA Insd) 4.50 05/15/31 992,090
1,000 University of California, Ser 2007- J (FSA Insd) 4.50 05/15/35 983,720
1,000 University of California Regents Ser 2007 A (MBIA Insd) 4.50 05/15/37 965,980
1,000 Upland School District, Election 2000 Ser 2001 B (FSA Insd) 5.125 08/01/25 1,069,920
675 Val Verde Unified School District of Construction COPs
Ser 2005 B (FGIC Insd) 5.00 01/01/30 684,227
1,375 Washington Unified School District, 2004 Ser A (FGIC Insd) 5.00 08/01/22 1,452,013
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
1,000 Yucaipa Valley Water District, Ser 2004 A COPs (MBIA Insd) 5.25 09/01/24 1,047,800
-----------
47,770,225
-----------
PUERTO RICO (2.0%)
1,000 Puerto Rico Infrastructure Financing Authority, 2000 Ser A (ETM)++ 5.50 10/01/32 1,061,540
-----------
TOTAL TAX-EXEMPT MUNICIPAL BONDS
(Cost $47,277,296) 48,831,765
-----------
SHORT-TERM TAX-EXEMPT MUNICIPAL OBLIGATIONS (2.2%)
1,100 California Department of Water Ser B Sub Ser B-1 (Demand 02/01/08)
(Cost $1,100,000) 3.53* 05/01/22 1,100,000
-----------
TOTAL INVESTMENTS
(Cost $48,377,296) (a) (b) 98.70% 49,931,765
========
OTHER ASSETS IN EXCESS OF LIABILITIES 1.3 664,844
-------- -----------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 100.0% $50,596,609
======== ===========
</TABLE>
- ----------
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.
RITES Residual Interest Tax-Exempt Security (Illiquid security).
+ Prefunded to call date shown.
++ A portion of this security has been physically segregated in connection
with open futures contracts in the amount of $180,095.
* Current coupon rate of variable rate demand obligation.
# Current coupon rate for residual interest bond. This rate resets
periodically as the auction rate on the related security changes. Position
in an inverse floating rate municipal obligation has a value of $390,585,
which represents 0.8% of net assets applicable to common shareholders.
(a) Securities have been designated as collateral in an amount equal to
$42,707,117 in connection with open futures contracts.
(b) The aggregate cost for federal income tax purposes approximates the
aggregate cost for book purposes.
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.
<PAGE>
FUTURES CONTRACTS OPEN AT JANUARY 31, 2008:
<TABLE>
<CAPTION>
UNREALIZED
NUMBER OF DESCRIPTION, DELIVERY UNDERLYING FACE APPRECIATION
CONTRACTS LONG/SHORT MONTH AND YEAR AMOUNT AT VALUE (DEPRECIATION)
- --------- ---------- ---------------------------- --------------- --------------
<S> <C> <C> <C> <C>
259 Long U.S. Treasury Swaps 10 Year,
March 2008 $29,481,486 $ 879,153
30 Long U.S. Treasury Bonds 20 Year,
March 2008 3,579,375 70,894
18 Short U.S. Treasury Notes 5 Year,
March 2008 (2,034,000) (59,721)
53 Short U.S. Treasury Notes 2 Year,
March 2008 (11,300,594) (174,929)
215 Short U.S. Treasury Notes 10 Year,
March 2008 (25,094,531) (805,140)
---------
Net Unrealized Depreciation (90,744)
=========
</TABLE>
<PAGE>
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
<PAGE>
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 California Municipal Securities
/s/ Ronald E. Robison
Ronald E. Robison
Principal Executive Officer
March 20, 2008
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
March 20, 2008
/s/ Francis Smith
Francis Smith
Principal Financial Officer
March 20, 2008
3
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.CERT
<SEQUENCE>2
<FILENAME>y50487cexv99wcert.txt
<DESCRIPTION>CERTIFICATION
<TEXT>
<PAGE>
EXHIBIT 3 A1
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
I, Ronald E. Robison, certify that:
1. I have reviewed this report on Form N-Q of Morgan Stanley Insured
California Municipal Securities;
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 schedules of investments included in this report
fairly present in all material respects the investments of the registrant
as of the end of the fiscal quarter for which the report is filed;
4. The registrant's other certifying officer(s) 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 second
fiscal quarter of the period covered by this 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
(b) Any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal
control over financial reporting.
Date: March 20, 2008
/s/ Ronald E. Robison
Ronald E. Robison
Principal Executive Officer
4
<PAGE>
EXHIBIT 3 A2
CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER
I, Francis Smith, certify that:
1. I have reviewed this report on Form N-Q of Morgan Stanley Insured
California Municipal Securities;
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 schedules of investments included in this report
fairly present in all material respects the investments of the registrant
as of the end of the fiscal quarter for which the report is filed;
4. The registrant's other certifying officer(s) 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 quarter 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
(b) Any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal
control over financial reporting.
Date: March 20, 2008
/s/ Francis Smith
Francis Smith
Principal Financial Officer
5
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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