Morgan Stanley Insured Municipal Trust (Trust) has received shareholder approval to adopt changes to the Trusts investment policies. This initiative allows important flexibility to Trusts portfolio management team for responding to ongoing developments in the insured municipal bond market.
Without changing its investment objective Trust tries to accomplish investment by providing income which is exempt from federal income tax.The Trusts shareholders have approved the following investment policy changes:
-To allow the Trust to invest up to 20 % of the Trusts net assets in taxable or tax-exempt fixed income securities rated at least investment grade by a nationally recognized statistical rating organization (NRSRO) or, if not rated, determined by the Trusts Investment Adviser to be of comparable quality, including uninsured municipal obligations, obligations of the U.S. government, its respective agencies or instrumentalities, and other fixed income obligations, and, during periods in which the Investment Adviser believes that changes in economic, financial or political conditions make it advisable to do so, to invest an unlimited extent in such investments for temporary defensive purposes. The Trust may also invest in options, futures, swaps and other derivatives.
-The elimination and modification of certain fundamental investment policies and restrictions of the Trust.
The Trust did not achieve the required quorum to pass the proposal to invest, under normal market conditions, at least 80 percent of the Trusts net assets in municipal obligations which are covered by insurance guaranteeing the timely payment of principal and interest thereon and that are rated at least A by a NRSRO or are unrated but judged to be of similar credit quality by the Trusts Investment Adviser, or covered by insurance issued by insurers rated at least A by a NRSRO.
L.D.