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 811-8707
Name of Fund: MuniHoldings Insured Fund, Inc.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief Executive
Officer, MuniHoldings Insured Fund, Inc., 800 Scudders Mill Road,
Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton,
NJ, 08543-9011
Registrant's telephone number, including area code: (609) 282-2800
Date of fiscal year end: 04/30/2007
Date of reporting period: 05/01/06 - 07/31/06
Item 1 - Schedule of Investments
MuniHoldings Insured Fund, Inc.
Schedule of Investments as of July 31, 2006 (In Thousands)
Face
State Amount Municipal Bonds Value
Alabama - 1.3% $ 2,170 Jefferson County, Alabama, Limited Obligation School Warrants, Series A,
5.50% due 1/01/2022 $ 2,317
Arkansas - 2.2% 3,710 Arkansas State Development Finance Authority, M/F Mortgage Revenue Refunding
Bonds, DRIVERS, Series 964Z, 6.73% due 6/01/2010 (c)(e)(j) 3,960
California - 33.6% 3,250 California Pollution Control Financing Authority, PCR, Refunding, DRIVERS,
AMT, Series 878Z, 6.719% due 12/01/2009 (e)(j) 3,630
190 California State, GO, 5.50% due 4/01/2014 (f) 211
1,110 California State, GO, 5.50% due 4/01/2028 1,200
2,000 California State Public Works Board, Lease Revenue Bonds (Department of General
Services - Capitol East End Complex), Series A, 5% due 12/01/2027 (a) 2,052
1,800 East Side Union High School District, California, Santa Clara County, GO
(Election of 2002), Series B, 5% due 8/01/2027 (b) 1,856
1,335 East Side Union High School District, California, Santa Clara County, GO
(Election of 2002), Series D, 5% due 8/01/2021 (g) 1,401
5,155 East Side Union High School District, California, Santa Clara County, GO
(Election of 2002), Series D, 5% due 8/01/2029 (g) 5,317
2,000 Los Angeles, California, Unified School District, GO (Election of 1997),
Series F, 5% due 1/01/2028 (b) 2,064
4,395 Los Angeles, California, Unified School District, GO, Series A, 5% due
1/01/2028 (e) 4,536
2,565 Modesto, California, Schools Infrastructure Financing Agency, Special
Tax Bonds, 5.50% due 9/01/2036 (a) 2,753
5,005 San Francisco, California, City and County, GO (California Academy of Sciences
Improvements), Series E, 5% due 6/15/2023 (e) 5,210
1,265 San Jose, California, GO (Libraries, Parks and Public Safety Projects), 5%
due 9/01/2030 (e) 1,304
2,635 San Pablo, California, Joint Powers Financing Authority, Tax Allocation
Revenue Refunding Bonds, 5.66% due 12/01/2024 (e)(m) 1,039
Portfolio Abbreviations
To simplify the listings of MuniHoldings Insured Fund, Inc.'s portfolio
holdings in the Schedule of Investments, we have abbreviated the names
of many of the securities according to the listed below.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
DRIVERS Derivative Inverse Tax-Exempt Receipts
EDA Economic Development Authority
GO General Obligation Bonds
HDA Housing Development Authority
HFA Housing Finance Agency
M/F Multi-Family
PCR Pollution Control Revenue Bonds
VRDN Variable Rate Demand Notes
MuniHoldings Insured Fund, Inc.
Schedule of Investments as of July 31, 2006 (concluded) (In Thousands)
Face
State Amount Municipal Bonds Value
California $ 2,355 San Pablo, California, Joint Powers Financing Authority, Tax Allocation
(concluded) Revenue Refunding Bonds, 5.66% due 12/01/2025 (e)(m) $ 875
2,355 San Pablo, California, Joint Powers Financing Authority, Tax Allocation
Revenue Refunding Bonds, 5.66% due 12/01/2026 (e)(m) 825
4,265 Santa Ana, California, Unified School District, GO, 5% due 8/01/2032 (e) 4,370
3,145 Sequoia, California, Unified High School District, GO, Refunding, Series B,
5.50% due 7/01/2035 (d) 3,436
4,540 Stockton, California, Public Financing Revenue Bonds (Redevelopment Projects),
Series A, 5.25% due 9/01/2031 (h) 4,735
2,080 Sweetwater, California, Union High School District, Public Financing Authority,
Special Tax Revenue Bonds, Series A, 5% due 9/01/2028 (d) 2,143
2,180 Tustin, California, Unified School District, Senior Lien Special Tax Bonds
(Community Facilities District Number 97-1), Series A, 5% due 9/01/2032 (d) 2,223
2,800 Tustin, California, Unified School District, Senior Lien Special Tax Bonds
(Community Facilities District Number 97-1), Series A, 5% due 9/01/2038 (d) 2,857
2,000 University of California Revenue Bonds (Multiple Purpose Projects), Series Q,
5% due 9/01/2022 (d) 2,077
3,480 West Contra Costa, California, Unified School District, GO, Series C, 5% due
8/01/2021 (b) 3,622
Colorado - 6.4% 2,440 Aurora, Colorado, COP, 5.75% due 12/01/2010 (a)(f) 2,626
2,560 Aurora, Colorado, COP, 5.75% due 12/01/2010 (a)(f) 2,755
2,730 Aurora, Colorado, COP, 5.75% due 12/01/2010 (a)(f) 2,938
2,890 Aurora, Colorado, COP, 5.75% due 12/01/2010 (a)(f) 3,111
Florida - 2.4% 2,225 Miami-Dade County, Florida, Subordinate Special Obligation Revenue Bonds,
Series A, 5.24% due 10/01/2037 (e)(m) 433
3,850 Pasco County, Florida, Half-Cent Sales Tax Revenue Bonds, 5.125% due 12/01/2028 (a) 3,994
Georgia - 3.5% 4,000 Augusta, Georgia, Water and Sewer Revenue Bonds, 5.25% due 10/01/2034 (d) 4,211
1,900 Burke County, Georgia, Development Authority, PCR, Refunding (Oglethorpe Power
Corporation), VRDN, Series B, 3.60% due 1/01/2020 (a)(i) 1,900
Illinois - 10.8% 2,790 Chicago, Illinois, GO, Series A, 6% due 7/01/2010 (b)(f) 3,035
2,000 Chicago, Illinois, GO, Series A, 6% due 7/01/2010 (b)(f) 2,176
3,175 Chicago, Illinois, GO, Series A, 6% due 7/01/2010 (b)(f) 3,454
2,150 Chicago, Illinois, O'Hare International Airport Revenue Bonds, DRIVERS, AMT,
Series 845-Z, 7.998% due 1/01/2012 (e)(g)(j) 2,590
2,965 Chicago, Illinois, Park District, Limited Tax, GO, Series A, 5.75% due
1/01/2011 (b)(f) 3,198
4,500 Illinois State, GO, First Series, 6% due 1/01/2018 (b) 4,788
45 Lake, Cook, Kane and McHenry Counties, Illinois, Community Unit School District
Number 220, GO, 5.75% due 12/01/2019 (b) 48
Indiana - 1.2% 2,000 Indiana Transportation Finance Authority, Highway Revenue Bonds, Series A, 5.25%
due 6/01/2029 (b) 2,103
Louisiana - 0.5% 945 Louisiana State, Gas and Fuels Tax Revenue Bonds, Series A, 5% due 5/01/2030 (b) 972
Massachusetts - 10.4% 3,565 Massachusetts Bay Transportation Authority, Sales Tax Revenue Refunding Bonds,
Senior Series A, 5% due 7/01/2035 3,636
2,105 Massachusetts Bay Transportation Authority, Special Assessment Revenue Refunding
Bonds, Series A, 5% due 7/01/2031 2,175
565 Massachusetts State, HFA, Housing Development Revenue Refunding Bonds, AMT,
Series A, 5.15% due 6/01/2011 (e) 566
2,440 Massachusetts State, HFA, Rental Housing Mortgage Revenue Bonds, AMT, Series C,
5.50% due 7/01/2032 (d) 2,557
9,405 Massachusetts State School Building Authority, Dedicated Sales Tax Revenue Bonds,
Series A, 5% due 8/15/2030 (d) 9,744
Michigan - 3.8% 2,035 Boyne City, Michigan, Public School District, GO, 5.75% due 5/01/2009 (b)(f) 2,139
1,750 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds,
DRIVERS, AMT, Series 857Z, 7.299% due 3/01/2010 (g)(j) 1,931
1,000 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds,
DRIVERS, AMT, Series 858Z, 7% due 12/01/2011 (g)(j) 1,115
1,500 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds
(Detroit Edison Pollution), AMT, Series B, 5.65% due 9/01/2029 (g) 1,577
Minnesota - 2.4% 4,015 Sauk Rapids, Minnesota, Independent School District Number 47, GO, Series A,
5.65% due 2/01/2019 (e) 4,320
Missouri - 5.3% 2,000 Cape Girardeau, Missouri, School District Number 063, GO (Missouri Direct
Deposit Program), 5.50% due 3/01/2018 (b) 2,103
1,925 Mehlville, Missouri, School District Number R-9, COP, Series A, 5.50% due
3/01/2014 (d) 2,054
2,175 Mehlville, Missouri, School District Number R-9, COP, Series A, 5.50% due
3/01/2015 (d) 2,317
1,170 Mehlville, Missouri, School District Number R-9, COP, Series A, 5.50% due
3/01/2016 (d) 1,247
1,500 Mehlville, Missouri, School District Number R-9, COP, Series A, 5.50% due
3/01/2017 (d) 1,591
Nebraska - 2.2% 1,585 Omaha Convention Hotel Corporation, Nebraska, Convention Center Revenue Bonds,
First Tier, Series A, 5.50% due 4/01/2020 (a) 1,699
2,000 Omaha Convention Hotel Corporation, Nebraska, Convention Center Revenue Bonds,
First Tier, Series A, 5.50% due 4/01/2021 (a) 2,136
New Jersey - 17.7% 1,800 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.625% due 6/15/2018 1,866
5,295 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.75% due 6/15/2029 5,607
3,800 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.75% due 6/15/2034 (l) 4,117
6,700 New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A, 5.25% due
7/01/2033 (e) 7,063
3,020 New Jersey State Transportation Trust Fund Authority, Transportation System
Revenue Bonds, Series D, 5% due 6/15/2015 (d)(f) 3,244
3,685 New Jersey State Transportation Trust Fund Authority, Transportation System
Revenue Bonds, Series D, 5% due 6/15/2019 (d) 3,865
5,500 New Jersey State Turnpike Authority, Turnpike Revenue Bonds, Series C, 5% due
1/01/2030 (d) 5,683
New Mexico - 2.0% 3,325 New Mexico Finance Authority, Senior Lien State Transportation Revenue Bonds,
Series A, 5.125% due 6/15/2018 (e) 3,541
New York - 26.9% 10,000 Nassau Health Care Corporation, New York, Health System Revenue Bonds, 5.75%
due 8/01/2009 (d)(f) 10,753
230 New York City, New York, GO, Refunding, Series G, 5.75% due 2/01/2017 (d) 234
4,000 New York City, New York, GO, Series E, 5% due 11/01/2017 (d) 4,229
7,085 New York City, New York, GO, Series G, 5.75% due 10/15/2007 (d)(f) 7,329
4,055 New York City, New York, Sales Tax Asset Receivable Corporation Revenue Bonds,
Series A, 5% due 10/15/2020 (e) 4,266
4,095 New York City, New York, Sales Tax Asset Receivable Corporation Revenue Bonds,
Series A, 5.25% due 10/15/2027 (a) 4,361
4,000 New York City, New York, Sales Tax Asset Receivable Corporation Revenue Bonds,
Series A, 5% due 10/15/2032 (a) 4,133
3,505 New York State Dormitory Authority Revenue Bonds (School Districts Financing
Program), Series D, 5.25% due 10/01/2023 (e) 3,728
4,900 Tobacco Settlement Financing Corporation of New York Revenue Bonds, Series C-1,
5.50% due 6/01/2017 5,204
3,430 Tobacco Settlement Financing Corporation of New York Revenue Bonds, Series C-1,
5.50% due 6/01/2020 (b) 3,690
Oregon - 0.9% 1,400 Portland, Oregon, Urban Renewal and Redevelopment Tax Allocation Bonds
(Oregon Convention Center), Series A, 5.75% due 6/15/2015 (a) 1,506
Pennsylvania - 12.8% 3,900 Pennsylvania State Higher Educational Facilities Authority, State System of
Higher Education Revenue Bonds, Series O, 5.125% due 6/15/2024 (a) 3,933
6,045 Philadelphia, Pennsylvania, Airport Revenue Bonds (Philadelphia Airport System),
AMT, Series B, 5.50% due 6/15/2017 (b) 6,225
3,390 Pittsburgh, Pennsylvania, GO, Refunding, Series B, 5.25% due 9/01/2017 (d) 3,676
2,615 Pittsburgh, Pennsylvania, GO, Series C, 5.25% due 9/01/2017 (d) 2,836
2,015 Seneca Valley, Pennsylvania, School District, GO, 5% due 1/01/2019 (b) 2,123
1,800 Washington County, Pennsylvania, Capital Funding Authority Revenue Bonds
(Capital Projects and Equipment Program), 6.15% due 12/01/2029 (a) 1,923
1,885 York County, Pennsylvania, School of Technology Authority, Lease Revenue
Refunding Bonds, 5.50% due 2/15/2022 (b) 2,026
Rhode Island - 4.8% 5,000 Providence, Rhode Island, Redevelopment Agency Revenue Refunding Bonds
(Public Safety and Municipal Buildings), Series A, 5.75% due 4/01/2010 (a)(f) 5,374
2,870 Rhode Island State Health and Educational Building Corporation Revenue Bonds
(Rhode Island School of Design), Series D, 5.50% due 8/15/2031 (g) 3,076
South Carolina - 0.9% 1,525 Medical University Hospital Authority, South Carolina, Hospital Facilities,
Revenue Refunding Bonds, Series A, 5.25% due 2/15/2025 (c)(e) 1,605
Tennessee - 2.9% 2,580 Tennessee HDA, Revenue Refunding Bonds (Homeownership Program), AMT, Series A,
5.25% due 7/01/2022 (d) 2,638
2,370 Tennessee HDA, Revenue Refunding Bonds (Homeownership Program), AMT, Series A,
5.35% due 1/01/2026 (d) 2,425
Texas - 4.1% 4,000 Dallas-Fort Worth, Texas, International Airport Revenue Bonds, DRIVERS, AMT,
Series 778-Z, 6.999% due 11/01/2011 (e)(j) 4,438
2,780 Houston, Texas, Community College System, Participation Interests, COP (Alief
Center Project), 5.75% due 8/15/2022 (e) 2,910
Washington - 4.9% 4,000 Bellevue, Washington, GO, Refunding, 5.50% due 12/01/2039 (e) 4,337
2,310 Chelan County, Washington, Public Utility District Number 001, Consolidated
Revenue Bonds (Chelan Hydro System), AMT, Series A, 5.45% due 7/01/2037 (a) 2,425
1,810 Snohomish County, Washington, Public Utility District Number 001, Electric
Revenue Bonds, 5.50% due 12/01/2022 (d) 1,943
West Virginia - 2.9% 5,000 West Virginia State Housing Development Fund, Housing Finance Revenue Refunding
Bonds, Series D, 5.20% due 11/01/2021 (e) 5,141
Wisconsin - 0.3% 500 Wisconsin State Health and Educational Facilities Authority Revenue Bonds (Blood
Center of Southeastern Wisconsin Project), 5.50% due 6/01/2024 521
Wyoming - 0.9% 1,500 Wyoming Student Loan Corporation, Student Loan Revenue Refunding Bonds, Series A,
6.20% due 6/01/2024 1,585
Puerto Rico - 3.0% 3,235 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series RR, 5% due
7/01/2027 (g) 3,355
1,870 Puerto Rico Public Buildings Authority, Government Facilities Revenue Refunding
Bonds, Series D, 5.25% due 7/01/2036 1,918
Total Municipal Bonds (Cost - $297,890) - 171.0% 304,104
Shares
Held Short-Term Securities
21 Merrill Lynch Institutional Tax-Exempt Fund, 3.45% (k)(n) 21
Total Short-Term Securities (Cost - $21) - 0.0% 21
Total Investments (Cost - $297,911*) - 171.0% 304,125
Other Assets Less Liabilities - 4.4% 7,811
Preferred Stock, at Redemption Value - (75.4%) (134,070)
------------
Net Assets Applicable to Common Stock - 100.0% $ 177,866
============
* The cost and unrealized appreciation (depreciation) of investments
as of July 31, 2006, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 297,957
=================
Gross unrealized appreciation $ 7,308
Gross unrealized depreciation (1,140)
-----------------
Net unrealized appreciation $ 6,168
=================
(a) AMBAC Insured.
(b) FGIC Insured.
(c) FHA Insured.
(d) FSA Insured.
(e) MBIA Insured.
(f) Prerefunded.
(g) XL Capital Insured.
(h) Radian Insured.
(i) Security may have a maturity of more than one year at time of issuance,
but has variable rate and demand features that qualify it as a short-term
security. The rate disclosed is that currently in effect. This rate
changes periodically based upon prevailing market rates.
(j) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(k) Investments in companies considered to be an affiliate of the Fund,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940,
were as follows:
Net Dividend
Affiliate Activity Income
Merrill Lynch Institutional
Tax-Exempt Fund -- --*
* Amount is less than $1,000.
(l) Assured Guaranty Insured.
(m) Represents a zero coupon bond, the interest rate shown reflects the
effective yield at the time of purchase.
(n) Represents the effective yield as of July 31, 2006.
Item 2 - Controls and Procedures
2(a) - The registrant's certifying officers have reasonably designed such
disclosure controls and procedures to ensure material information
relating to the registrant is made known to us by others particularly
during the period in which this report is being prepared. The
registrant's certifying officers have determined that the registrant's
disclosure controls and procedures are effective based on our
evaluation of these controls and procedures as of a date within 90
days prior to the filing date of this report.
2(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Act
(17 CFR 270.30a-3(d)) that occurred during the last 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.
Item 3 - Exhibits
Certifications - Attached hereto
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.
MuniHoldings Insured Fund, Inc.
By: /s/ Robert C. Doll, Jr.
-----------------------
Robert C. Doll, Jr.
Chief Executive Officer
MuniHoldings Insured Fund, Inc.
Date: September 20, 2006
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on
the dates indicated.
By: /s/ Robert C. Doll, Jr.
-----------------------
Robert C. Doll, Jr.
Chief Executive Officer
MuniHoldings Insured Fund, Inc.
Date: September 20, 2006
By: /s/ Donald C. Burke
-----------------------
Donald C. Burke
Chief Financial Officer
MuniHoldings Insured Fund, Inc.
Date: September 20, 2006