Morgan Stanley Insured Municipal Trust Adopts Investment Policy Changes

  
    
  
  
    
      Morgan Stanley Insured Municipal Trust (NYSE: IMT) (the “Trust”) has 
      received shareholder approval to adopt the investment policy change, as 
      described below. This change is designed to expand the investment 
      universe in which the Trust can invest, thereby providing the Trust’s 
      portfolio management team with important flexibility to respond to 
      ongoing developments in the insured municipal bond market. The Trust 
      seeks to achieve its investment objective by providing income which is 
      exempt from federal income tax. The Trust is not changing its investment 
      objective.
    
    
      In connection with the recent instability in the marketplace, some of 
      the insurers of municipal obligations have experienced ratings 
      downgrades by the ratings agencies that rate such insurers’ claims 
      paying ability. This affects many funds that invest in insured municipal 
      obligations because many of these funds (including the Trust) currently 
      have policies that require such funds to invest 80 percent of their net 
      assets in municipal obligations that are insured by an insurer rated 
      “AAA” at the time of purchase. At a meeting held on December 12, 2008, 
      the Trust’s shareholders have approved the following investment policy 
      change:
    
    
      
        To allow the Trust to invest, under normal market conditions, at least 
        80 percent of the Trust’s 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 nationally 
        recognized statistical rating organization (“NRSRO”) or are unrated 
        but judged to be of similar credit quality by the Trust’s Investment 
        Adviser, or covered by insurance issued by insurers rated at least “A” 
        by a NRSRO.
      
    
    
      The Trust’s Management believes that the changed policy allows the Trust 
      to continue to purchase higher quality insured municipal obligations, 
      while acknowledging the changing market and economic conditions. While 
      the market risk and the credit risk of the Trust investing in insured 
      municipal obligations generally should be lower than the risks of a fund 
      investing in similar municipal obligations that are uninsured, insurance 
      does not eliminate the market risk or credit risk of the securities in 
      the Trust’s portfolio. A downgrade of an insurer would generally subject 
      the Trust to potential market value declines and increased credit risk 
      on the municipal obligations insured by such insurer.
    
    
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      advisory affiliates, has nearly 1000 investment professionals around the 
      world and approximately $570 billion in assets under management or 
      supervision as of August 31, 2008. By leveraging its global ‘community 
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      corporations and individuals worldwide.
    
    
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