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)
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 INSURED CALIFORNIA MUNICIPAL SECURITIES
PORTFOLIO OF INVESTMENTS JULY 31, 2004 (UNAUDITED)
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
--------- -------------------------------------------------------------------- ------ -------- -----------
CALIFORNIA TAX-EXEMPT MUNICIPAL BONDS (94.9%)
General Obligation (21.1%)
$3,000 California, Various Purpose Dtd 03/01/94 (FSA) 5.50% 03/01/20 $ 3,067,982
2,000 Los Angeles Community College District, 2001 Ser A 5.00 06/01/26 2,007,620
(MBIA)
1,030 Los Angeles, California, Ser A 5.00 09/01/24 1,055,802
San Diego Unified School District,
1,000 2002 Ser D (FGIC) 5.25 07/01/24 1,049,330
1,000 2003 Ser E (FSA) 5.00 07/01/28 1,004,600
1,000 Tahoe Truckee Unified School District, District #1 2001 Refg (MBIA) 5.50 08/01/18 1,133,730
1,000 Upland School District, 2000 Ser 2001 B (FSA) 5.125 08/01/25 1,027,580
1,375 Washington Unified School District, Election 2004 Ser A (FGIC) 5.00 08/01/22 1,422,850
--------- -----------
11,405 11,769,494
--------- -----------
Educational Facilities Revenue (1.9%)
1,000 University of California, Ser 2003 A (Ambac) 5.00 05/15/21 1,039,220
--------- -----------
Electric Revenue (8.4%)
1,000 Anaheim Public Financing Authority, Generation Refg Ser 2002-B 5.25 10/01/18 1,073,850
(FSA)
1,400 California Department of Water Resources, Power Supply Ser 5.375 05/01/18 1,515,528
2002 A (Ambac)
1,000 Los Angeles Department of Water & Power, 2001 Ser A (FSA) 5.25 07/01/21 1,056,490
1,000 Southern California Public Power Authority, Transmission Refg 5.25 07/01/18 1,072,940
--------- Ser 2002 A (FSA) -----------
4,400 4,718,808
--------- -----------
Mortgage Revenue - Multi-Family (4.3%)
2,370 Los Angeles Community Redevelopment Agency, 1994 Ser A 6.45 07/01/17 2,423,064
--------- (Ambac) -----------
Mortgage Revenue - Single Family (4.2%)
2,000 California Department of Veterans Affairs, Home Purchase 2002 5.35 12/01/27 2,053,960
Ser A (Ambac)
285 California Housing Financing Agency, 1995 Ser B (AMT) (Ambac) 6.25 08/01/14 292,279
--------- -----------
2,285 2,346,239
--------- -----------
Public Facilities Revenue (2.7%)
1,400 Puerto Rico Public Bldgs Authority, Ser J (Ambac) 5.00 07/01/36 1,508,458
--------- -----------
Resource Recovery Revenue (4.0%)
2,000 Sacramento Financing Authority, 1999 Solid Waste & Redev 5.75 12/01/22 2,213,740
--------- (Ambac) -----------
Tax Allocation Revenue (7.7%)
2,000 Bay Area Government Association, Pool 1994 Ser A (FSA) 6.00 12/15/24 2,068,600
1,100 La Quinta Financing Authority, Local Agency 2004 Ser A (Ambac) 5.25 09/01/24 1,150,358
1,000 Long Beach Bond Finance Authority, Downtown, North Long 5.375 08/01/21 1,064,130
--------- Beach, Poly High and West Beach 2002 Ser A (Ambac) -----------
4,100 4,283,088
--------- -----------
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
--------- -------------------------------------------------------------------- ------ -------- -----------
Transportation Facilities Revenue (11.0%)
2,000 California Infrastructure & Economic Development Bank, Bay 5.00 07/01/29 2,007,780
Area Toll Bridges Seismic Retrofit First Lien Ser 2003 A (FGIC)
1,000 Los Angeles County Metropolitan Transportation Authority, Sales 5.25 07/01/30 1,022,940
Tax Ser 2000 A (FGIC)
2,000 Orange County Transportation Authority, Toll Bridges Express 5.00 08/15/20 2,090,960
Lanes Ser A (Ambac)
1,000 San Jose, Airport Ser 2001 A (FGIC) 5.00 03/01/25 1,008,050
--------- -----------
6,000 6,129,730
--------- -----------
Water & Sewer Revenue (22.1%)
1,500 California Department of Water Resources, Central Valley Ser Y 5.25 12/01/19 1,608,885
(FGIC)
2,000 East Bay Municipal Utility District, Water Ser 2001 (MBIA) 5.00 06/01/26 2,013,100
1,000 Los Angeles, Wastewater System Revenue, Refg Ser 2003 B (FSA) 5.00 06/01/22 1,034,220
1,000 Metropolitan Waterworks District of Southern California 2003 Ser 5.00 10/01/27 1,006,150
B-2 (FGIC)
1,700 Oxnard, California Financing Authority, Redwood Trunk Sewer & 5.00 06/01/29 1,704,471
Headworks Ser 2004 A (FGIC)
2,000 Sacramento Financing Authority, Water & Capital Improvement 5.00 12/01/26 2,013,100
2001 Ser A (Ambac)
2,000 San Francisco Public Utilities Commission, Water Refg Ser A 5.00 11/01/31 2,004,060
2001 (FSA)
1,000 Yucaipa Valley, Water District System, Ser A (MBIA) 5.25 09/01/24 1,045,780
--------- -----------
12,200 12,429,766
--------- -----------
Other Revenue (1.9%)
1,000 California State Economic Recovery, Ser A (MBIA) 5.00 07/01/15 1,081,610
---------
Refunded (5.6%) -----------
2,000 Anaheim, Anaheim Memorial Hospital Assn COPs (Ambac) (ETM) 5.125 05/15/20 2,048,320
1,000 Puerto Rico Infrastructure Financing Authority, 2000 Ser A (ETM) 5.50 10/01/32 1,057,180
--------- -----------
3,000 3,105,500
--------- -----------
51,160 TOTAL CALIFORNIA TAX-EXEMPT MUNICIPAL BONDS (Cost $50,792,121) 53,048,717
--------- -----------
CALIFORNIA SHORT-TERM TAX-EXEMPT MUNICIPAL OBLIGATION (2.1%)
1,200 Newport Beach, Hoag Memorial/Presbyterian Hospital Ser 1992 1.08* 10/01/22 1,200,000
--------- (Demand 08/02/04) (Cost $1,200,000) -----------
$52,360 TOTAL INVESTMENTS (Cost $51,992,121) (a) 97.0% 54,248,717
=========
OTHER ASSETS IN EXCESS OF LIABILITIES 3.0 1,649,871
------ -----------
NET ASSETS 100.0% $55,898,588
====== ===========
----------------------------
AMT Alternative Minimum Tax.
COPs Certificates of Participation.
ETM Escrowed to maturity.
* Current coupon of variable rate demand obligation.
(a) The aggregate cost for federal income tax purposes approximates the
aggregate cost for book purposes.
The aggregate gross and net unrealized appreciation is $2,256,596.
Bond Insurance:
Ambac Ambac Assurance Corporation.
FGIC Financial Guaranty Insurance Company.
FSA Financial Security Assurance Inc.
MBIA Municipal Bond Investors Assurance Corporation.
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.
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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
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
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