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, 2006
Date of reporting period: January 31, 2006
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 January 31, 2006 (unaudited)
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
--------- ------ -------- -----------
CALIFORNIA TAX-EXEMPT MUNICIPAL BONDS (97.5%)
General Obligation (10.3%)
$ 505 California, Various Purposes Dtd 03/01/94 5.50% 03/01/20 $ 505,914
1,280 Huntington Beach Union High School District, Ser 2004 (FSA) 5.00 08/01/26 1,343,693
1,030 Los Angeles, Ser 2004 A (MBIA) 5.00 09/01/24 1,085,414
1,000 Upland School District, Election 2000 Ser 2001 B (FSA) 5.125 08/01/25 1,069,400
1,375 Washington Unified School District, Election 2004 Ser A (FGIC) 5.00 08/01/22 1,451,395
------- -----------
5,190 5,455,816
------- -----------
Educational Facilities Revenue (6.4%)
1,000 California State University, Ser 2005 A (Ambac) 5.00 11/01/35 1,040,880
University of California,
1,000 Limited Projects Ser 2005 B (FSA) 5.00 05/15/30 1,041,580
1,250 Multi Purpose Ser Q (FSA) 5.00 09/01/31 1,294,963
------- -----------
3,250 3,377,423
------- -----------
Electric Revenue (8.2%)
1,000 Anaheim Public Financing Authority, Generation Refg Ser 2002-B 5.25 10/01/18 1,088,010
(FSA)
1,000 California Department of Water Resources, Power Supply Ser 5.375 05/01/18 1,110,350
2002 A (Ambac)
1,000 Los Angeles Department of Water & Power, 2001 Ser A (FSA) 5.25 07/01/21 1,068,330
1,000 Southern California Public Power Authority, Transmission Refg Ser 5.25 07/01/18 1,085,110
2002 A (FSA)
------- -----------
4,000 4,351,800
------- -----------
Mortgage Revenue - Multi-Family (2.6%)
1,340 Los Angeles Community Redevelopment Agency, 1994 Ser A 6.45 07/01/17 1,356,965
(Ambac)
------- -----------
Mortgage Revenue - Single Family (4.1%)
2,000 California Department of Veterans Affairs, Home Purchase 2002 5.35 12/01/27 2,111,840
Ser A (Ambac)
90 California Housing Financing Agency, 1995 Ser B (AMT) (Ambac) 6.25 08/01/14 91,024
------- -----------
2,090 2,202,864
------- -----------
Public Facilities Revenue (3.9%)
1,000 Simi Valley Public Financing Authority, Ser 2004 COPs (Ambac) 5.00 09/01/30 1,035,600
1,000 Val Verde Unified School District, School Construction 5.00 01/01/30 1,036,730
Project Ser 2005 B (FGIC)
------- -----------
2,000 2,072,330
------- -----------
Resource Recovery Revenue (4.8%)
Sacramento Financing Authority,
1,510 2005 Refg Solid Waste & Redevelopment (FGIC) 5.00 12/01/17 1,636,161
835 1999 Solid Waste & Redevelopment (Ambac) 5.75 12/01/22 916,738
------- -----------
2,345 2,552,899
------- -----------
Tax Allocation Revenue (12.8%)
250 Bay Area Government Association, Pool 1994 Ser A (FSA) 6.00 12/15/24 254,875
1,145 Capistrano Unified School District, Community Facilities District 5.00 09/01/29 1,191,384
#98-2 Ladera Special Tax Ser 2005 (FGIC)
1,100 La Quinta Financing Authority, Local Agency 2004 Ser A (Ambac) 5.25 09/01/24 1,187,824
1,000 Long Beach Bond Finance Authority, Downtown, North Long 5.375 08/01/21 1,081,470
Beach, Poly High and West Beach Areas 2002 Ser A (Ambac)
1,000 Rancho Mirage Redevelopment Agency, Ser 2003 A (MBIA) 5.00 04/01/33 1,027,500
1,000 San Jose Redevelopment Agency, Merged Area Ser 2002 (MBIA) 5.00 08/01/32 1,022,360
1,000 San Marcos Public Facilities Authority, Project Areas # 2 & 3 2005 5.00 08/01/35 1,031,670
Ser C (Ambac)
------- -----------
6,495 6,797,083
------- -----------
Transportation Facilities Revenue (11.9%)
2,000 California Infrastructure & Economic Development Bank, Bay Area 5.00 07/01/29 2,078,380
Toll Bridges Seismic Retrofit First Lien Ser 2003 A (FGIC)
1,000 Los Angeles County Metropolitan Transportation Authority, Sales 5.25 07/01/30 1,060,640
Tax Ser 2000 A (FGIC) #
2,000 Orange County Transportation Authority, Toll Road Express Lanes 5.00 08/15/20 2,124,480
Refg Ser 2003 A (Ambac)
1,000 San Jose, Airport Ser 2001 A (FGIC) 5.00 03/01/25 1,028,630
------- -----------
6,000 6,292,130
------- -----------
Water & Sewer Revenue (20.7%)
1,500 California Department of Water Resources, Central Valley Ser Y 5.25 12/01/19 1,635,480
(FGIC)
2,000 East Bay Municipal Utility District, Water Ser 2001 (MBIA) 5.00 06/01/26 2,065,499
1,000 Los Angeles, Wastewater Refg Ser 2003 B (FSA) 5.00 06/01/22 1,055,090
1,000 Metropolitan Water District of Southern California, 2003 Ser B-2 5.00 10/01/27 1,043,590
(FGIC)
1,000 Oxnard Financing Authority, Redwood Trunk Sewer & 5.00 06/01/29 1,041,780
Headworks Ser 2004 A (FGIC)
1,000 San Diego County Water Authority, Ser 2004 A COPs (FSA) 5.00 05/01/29 1,043,970
2,000 San Francisco Public Utilities Commission, Water Refg Ser A 2001 5.00 11/01/31 2,057,680
(FSA)
1,000 Yucaipa Valley Water District, Ser 2004 A COPs (MBIA) 5.25 09/01/24 1,074,610
------- -----------
10,500 11,017,699
------- -----------
Other Revenue (1.9%)
1,000 Golden State Tobacco Securitization Corporation, 5.00 06/01/38 1,031,930
Ser 2005 A (FGIC)
------- ----------
Refunded (9.9%)
2,000 Anaheim, Anaheim Memorial Hospital Association COPs (Ambac) 5.125 05/15/20 2,010,500
(ETM)
2,000 Sacramento Financing Authority, Water & Capital Improvement 5.00 06/01/11+ 2,148,540
2001 Ser A (Ambac)
1,000 Puerto Rico Infrastructure Financing Authority, 2000 Ser A (ETM) 5.50 10/01/32 1,080,630
------- -----------
5,000 5,239,670
------- -----------
49,210 TOTAL CALIFORNIA TAX-EXEMPT MUNICIPAL BONDS (Cost $49,521,192) 51,748,609
------- -----------
CALIFORNIA SHORT-TERM TAX-EXEMPT MUNICIPAL OBLIGATION (1.1%)
600 Orange County Sanitation District, Ser 2000 A COPs (Demand 3.03* 08/01/30 600,000
02/01/06) (Cost $600,000)
------- -----------
$49,810 TOTAL INVESTMENTS (Cost $50,121,192) (a) (b) 98.6% 52,348,609
=======
OTHER ASSETS IN EXCESS OF LIABILITIES 1.4 746,087
----- -----------
NET ASSETS 100.0% $53,094,696
===== ===========
----------
AMT Alternative Minimum Tax.
COPs Certificates of Participation.
ETM Escrowed to maturity.
+ Prerefunded to call date shown.
* Current coupon of variable rate demand obligation.
# A portion of this security has been physically segregated in connection
with open futures contracts in the amount of $26,500.
(a) Securities have been designated as collateral in an amount equal to
$6,367,328 in connection with open futures contracts.
(b) The aggregate cost for federal income tax purposes is $50,063,879. The
aggregate gross unrealized appreciation is $2,346,792 and the aggregate
gross unrealized depreciation is $62,062, resulting in net unrealized
appreciation of $2,284,730.
BOND INSURANCE:
Ambac Ambac Assurance Corporation.
FGIC Financial Guaranty Insurance Company.
FSA Financial Security Assurance Inc.
MBIA Municipal Bond Investors Assurance Corporation.
Futures Contracts Open at January 31, 2006:
NUMBER OF DESCRIPTION/DELIVERY UNDERLYING FACE UNREALIZED
CONTRACTS LONG/SHORT MONTH AND YEAR AMOUNT AT VALUE APPRECIATION
--------- ---------- --------------------------- --------------- ------------
50 Short U.S. Treasury Notes 5 Year $(5,286,719) $18,221
March 2006
10 Short U.S. Treasury Notes 10 Year (1,084,375) 4,348
March 2006
-------
Total unrealized appreciation ..................................... $22,569
=======
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 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
March 23, 2006
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 23, 2006
/s/ Francis Smith
-------------------------------------
Francis Smith
Principal Financial Officer
March 23, 2006
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