- Quarterly Schedule of Portfolio Holdings of Registered Management Investment Company (N-Q)
March 31 2010 - 5:24PM
Edgar (US Regulatory)
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: 811-07560
Morgan Stanley Quality Municipal Securities
(Exact name of registrant as specified in charter)
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522 Fifth Avenue, New York, New York
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10036
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(Address of principal executive offices)
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(Zip code)
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Randy Takian
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522 Fifth Avenue,
New York, New York 10036
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(Name and address of agent for service)
Registrants telephone number, including area code: 212-296-6963
Date of fiscal year end: October 31, 2010
Date of reporting period: January 31, 2010
Item 1. Schedule of Investments.
The Trusts 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 Quality Municipal Securities*
Portfolio of Investments
§
January 31, 2010 (unaudited)
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PRINCIPAL
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AMOUNT IN
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COUPON
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MATURITY
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THOUSANDS
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RATE
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DATE
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VALUE
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Tax-Exempt Municipal Bonds (149.1%)
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Alabama (0.9%)
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$
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2,000
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County of Jefferson, School Ser 2004 A
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5.50
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%
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01/01/22
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$
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1,705,960
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Alaska (1.1%)
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3,000
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Northern Tobacco Securitization Corp., Asset
Backed Ser 2006 A
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5.00
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06/01/46
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2,025,750
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Arizona (3.3%)
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425
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Maricopa County Pollution Control Corp., Arizona
Public Service Co., Ser 2009 A
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6.00
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05/01/29
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447,287
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3,890
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Salt River Project Agricultural Improvement &
Power District,
Ser 2002 B (a)
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5.00
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01/01/22
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4,025,548
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1,010
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State of Arizona, Ser 2008 A (COPs) (AGM Insd)
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5.00
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09/01/24
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1,061,358
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1,000
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Surprise Municipal Property Corp., Ser 2007
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4.90
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04/01/32
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803,770
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6,337,963
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California (25.6%)
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1,010
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Alhambra Unified School District, Ser 2009 B (AGC
Insd) (b)
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0.00
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08/01/35
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199,061
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1,635
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Alhambra Unified School District, Ser 2009 B (AGC
Insd) (b)
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0.00
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08/01/36
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300,824
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765
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Alvord Unified School District, Ser 2007 A (AGM
Insd)
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5.00
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08/01/24
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806,601
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710
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Beverly Hills Unified School District, Election of
2008 Ser 2009 (b)
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0.00
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08/01/26
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303,788
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1,370
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Beverly Hills Unified School District, Election of
2008 Ser 2009 (b)
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0.00
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08/01/31
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422,111
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3,000
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California Health Facilities Financing Authority,
Cedars-Sinai Medical Center Ser 2005
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5.00
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11/15/34
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2,817,360
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5,000
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California State Public Works Board, Mental Health
2004 Ser A
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5.00
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06/01/24
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4,748,650
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540
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City & County of San Francisco, Refg Laguna Honda
Hospital Ser 2008 R-3 (AGC Insd) (a)
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5.00
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06/15/28
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553,084
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355
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Clovis Unified School District, Election of 2004
Ser A (NATL-RE & FGIC Insd) (b)
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0.00
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08/01/29
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108,712
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1,000
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County of San Diego, Burnham Institute for Medical
Research Ser 2006 (COPs)
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5.00
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09/01/34
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825,530
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2,690
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Dry Creek Joint Elementary School District,
Election 2008
Ser 2009 E (b)
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0.00
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08/01/43
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281,078
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4,825
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Dry Creek Joint Elementary School District,
Election 2008
Ser 2009 E (b)
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0.00
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08/01/44
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469,135
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1,980
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El Segundo Unified School District, Election of
2008 Ser 2009 A (b)
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0.00
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08/01/32
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478,605
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2,000
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Golden State Tobacco Securitization Corp.,
Enhanced Asset Backed Ser 2005 A (AMBAC Insd)
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5.00
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06/01/29
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1,828,320
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4,000
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Golden State Tobacco Securitization Corp.,
Enhanced Asset Backed
Ser 2007 A-1
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5.125
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06/01/47
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2,762,920
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1,400
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Golden State Tobacco Securitization Corp.,
Enhanced Asset Backed Ser 2007 A-1
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5.75
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06/01/47
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1,069,110
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310
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Indio Redevelopment Agency, Ser 2008 A
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5.00
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08/15/23
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304,135
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310
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Indio Redevelopment Agency, Ser 2008 A
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5.00
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08/15/24
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301,562
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4,000
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Los Angeles Community College District,
California, 2003 Ser B (AGM Insd)
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5.00
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08/01/27
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4,081,080
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5,000
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Los Angeles Department of Water & Power, 2004 Ser
C (NATL-RE Insd) (a)
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5.00
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07/01/23
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5,226,287
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1,010
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Menifee Union School District, Election of 2008
Ser 2009 C
(AGC Insd) (b)
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0.00
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08/01/34
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215,190
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3,040
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Milpitas Redevelopment Agency, Area #1 Ser 2003
(NATL-RE Insd)
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5.00
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09/01/22
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3,041,155
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1,120
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Moreland School District, Ser 2014 C (AMBAC Insd)
(b)
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0.00
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08/01/29
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327,085
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815
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Oak Grove School District, Election 2008 Ser A (b)
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0.00
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08/01/28
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262,348
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Morgan Stanley Quality Municipal Securities*
Portfolio of Investments
§
January 31, 2010 (unaudited)
continued
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PRINCIPAL
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AMOUNT IN
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COUPON
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MATURITY
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THOUSANDS
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RATE
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DATE
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VALUE
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$
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1,590
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Patterson Joint Unified School District, Election
of 2008 Ser 2009 B (AGM Insd) (b)
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0.00
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%
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08/01/37
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$
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268,646
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4,025
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Patterson Joint Unified School District, Election
of 2008 Ser 2009 B (AGM Insd) (b)
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0.00
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08/01/36
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734,884
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2,040
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Poway Unified School District, School Facilities
Improvement District No. 07-1, 2008 Election Ser A
(b)
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0.00
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08/01/27
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705,309
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2,545
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Poway Unified School District, School Facilities
Improvement District No. 2007-1, 2008 Election Ser
A (b)
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0.00
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08/01/31
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655,236
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20,480
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San Bernardino Community College District, Ser
2009 B (b)
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0.00
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08/01/48
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1,515,725
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4,240
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San Diego County Water Authority, Ser 2004 A
(COPs) (AGM
Insd) (a)
|
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5.00
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05/01/29
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4,357,936
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465
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San Rafael City High School District, Election Ser
2002 B (NATL-RE & FGIC Insd) (b)
|
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0.00
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08/01/25
|
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189,897
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3,000
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|
State of California, Various Purpose dtd 05/01/03
|
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5.00
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02/01/32
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2,749,080
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2,000
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State of California, Various Purpose dtd 12/01/05
|
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5.00
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03/01/27
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1,952,760
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|
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2,000
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Tobacco Securitization Authority of Northern
California, Sacramento County Tobacco
Securitization Corporation Ser 2006 A-1
|
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5.00
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06/01/37
|
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1,515,500
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|
850
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Twin Rivers Unified School District, Ser 2009
(BANs) (b)
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0.00
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04/01/14
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743,784
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|
|
1,170
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William S. Hart Union High School District, Ser
2009 A (b)
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0.00
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08/01/32
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267,240
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|
5,725
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William S. Hart Union High School District, Ser
2009 A (b)
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0.00
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08/01/33
|
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1,219,024
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48,608,752
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Colorado (2.4%)
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2,590
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|
|
Arkansas River Power Authority, Power Ser 2006
(XLCA Insd)
|
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5.25
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|
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10/01/40
|
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2,292,513
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|
|
2,000
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|
Colorado Health Facilities Authority,
Adventist/Sunbelt Ser 2006 D
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5.00
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07/01/39
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2,014,880
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|
|
165
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|
|
Public Authority for Colorado Energy, Natural Gas
Ser 2008
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6.25
|
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|
11/15/28
|
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177,551
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4,484,944
|
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District of Columbia (2.4%)
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|
|
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|
|
1,540
|
|
|
District of Columbia, Income Tax, Ser 2009 A (a)
|
|
|
5.25
|
|
|
|
12/01/27
|
|
|
|
1,697,493
|
|
|
2,000
|
|
|
District of Columbia Ballpark, Ser 2006 B-1
(NATL-RE & FGIC Insd)
|
|
|
5.00
|
|
|
|
02/01/31
|
|
|
|
1,813,900
|
|
|
1,000
|
|
|
Metropolitan Washington Airports Authority,
Airport System Ser 2009 B (BHAC Insd)
|
|
|
5.00
|
|
|
|
10/01/29
|
|
|
|
1,048,400
|
|
|
|
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|
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|
|
|
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|
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|
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4,559,793
|
|
|
|
|
|
|
|
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|
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|
|
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|
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|
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Florida (9.5%)
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|
|
|
|
|
|
|
|
|
|
|
|
|
5,000
|
|
|
County of Miami-Dade, Miami Intl Airport Ser 2000
A (AMT) (NATL-RE & FGIC Insd)
|
|
|
6.00
|
|
|
|
10/01/24
|
|
|
|
5,076,950
|
|
|
800
|
|
|
County of Miami-Dade, Miami Intl Airport Ser 2009
A (AGC Insd)
|
|
|
5.00
|
|
|
|
10/01/25
|
|
|
|
831,680
|
|
|
1,995
|
|
|
County of Miami-Dade, Ser 2005 A (NATL-RE Insd)
|
|
|
0.00
|
(c)
|
|
|
10/01/30
|
|
|
|
1,440,111
|
|
|
25
|
|
|
Highlands County Health Facilities Authority,
Adventist Health/Sunbelt Ser 2006 C
|
|
|
5.25
|
|
|
|
11/15/16
|
(d)
|
|
|
29,545
|
|
|
975
|
|
|
Highlands County Health Facilities Authority,
Adventist Health/Sunbelt Ser 2006 C
|
|
|
5.25
|
|
|
|
11/15/36
|
|
|
|
975,468
|
|
|
1,000
|
|
|
Lee County Industrial Development Authority, Shell
Point Village/The Alliance Community for
Retirement Living Inc., Ser 2006
|
|
|
5.125
|
|
|
|
11/15/36
|
|
|
|
775,420
|
|
|
750
|
|
|
Palm Beach County Solid Waste Authority, Ser 2009
(BHAC Insd)
|
|
|
5.50
|
|
|
|
10/01/23
|
|
|
|
845,677
|
|
|
4,000
|
|
|
South Miami Health Facilities Authority, Baptist
Health South Florida Ser 2007 (a)
|
|
|
5.00
|
|
|
|
08/15/42
|
|
|
|
3,749,296
|
|
Morgan Stanley Quality Municipal Securities*
Portfolio of Investments
§
January 31, 2010 (unaudited)
continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRINCIPAL
|
|
|
|
|
|
|
|
|
|
|
|
|
AMOUNT IN
|
|
|
|
|
COUPON
|
|
|
MATURITY
|
|
|
|
|
THOUSANDS
|
|
|
|
|
RATE
|
|
|
DATE
|
|
|
VALUE
|
|
|
$
|
3,250
|
|
|
St Johns County Industrial Development Authority,
Glenmoor
Refg 2006 Ser A
|
|
|
5.375
|
%
|
|
|
01/01/40
|
|
|
$
|
2,312,700
|
|
|
1,000
|
|
|
St Johns County Industrial Development Authority,
Glenmoor Ser 2006 A
|
|
|
5.25
|
|
|
|
01/01/26
|
|
|
|
778,070
|
|
|
1,000
|
|
|
Tampa Bay Water Utility System Revenue, Ser 2001 A
(NATL-RE & FGIC Insd)
|
|
|
6.00
|
|
|
|
10/01/29
|
|
|
|
1,189,990
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18,004,907
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Georgia (6.1%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,000
|
|
|
City of Atlanta, Airport Passenger Facilities
Sub-Lien Ser 2004 C (AGM Insd) (a)
|
|
|
5.00
|
|
|
|
01/01/33
|
|
|
|
5,041,100
|
|
|
1,200
|
|
|
County of Dekalb, Water & Sewer Ser 2003 A
|
|
|
5.00
|
|
|
|
10/01/23
|
|
|
|
1,272,048
|
|
|
2,000
|
|
|
Georgia State Road & Tollway Authority, Ser 2003
|
|
|
5.00
|
|
|
|
10/01/22
|
|
|
|
2,123,860
|
|
|
3,000
|
|
|
Georgia State Road & Tollway Authority, Ser 2003
|
|
|
5.00
|
|
|
|
10/01/23
|
|
|
|
3,178,080
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,615,088
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hawaii (8.8%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,000
|
|
|
City & County of Honolulu HI, Ser 2003 A (NATL-RE
Insd) (a)
|
|
|
5.25
|
|
|
|
03/01/24
|
|
|
|
8,663,760
|
|
|
5,000
|
|
|
Hawaii State Department of Budget & Finance,
Hawaiian Electric Co Inc Ser 1993 (AMT) (NATL-RE
Insd)
|
|
|
5.45
|
|
|
|
11/01/23
|
|
|
|
5,000,950
|
|
|
3,000
|
|
|
State of Hawaii, Airports Refg Ser 2000 B (AMT)
(NATL-RE & FGIC Insd)
|
|
|
6.625
|
|
|
|
07/01/18
|
|
|
|
3,059,940
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,724,650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Illinois (15.0%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,600
|
|
|
Chicago Park District, Harbor Ser A (AMBAC Insd)
|
|
|
5.00
|
|
|
|
01/01/27
|
|
|
|
3,725,280
|
|
|
1,070
|
|
|
Chicago Transit Authority, Ser 2008 (AGC Insd)
|
|
|
5.25
|
|
|
|
06/01/23
|
|
|
|
1,142,236
|
|
|
3,000
|
|
|
City of Chicago, OHare Intl Airport 3rd Lien Ser
2005 A (NATL-RE Insd)
|
|
|
5.25
|
|
|
|
01/01/26
|
|
|
|
3,098,400
|
|
|
3,000
|
|
|
City of Chicago, OHare Intl Airport Passenger
Fee Ser 2001 A (AMT) (AMBAC Insd)
|
|
|
5.375
|
|
|
|
01/01/32
|
|
|
|
2,885,940
|
|
|
4,590
|
|
|
City of Chicago, Project & Refg Ser 2007 A (FGIC &
AGM Insd) (CR) (a)(e)
|
|
|
5.00
|
|
|
|
01/01/37
|
|
|
|
4,616,484
|
|
|
725
|
|
|
De Kalb County Community United School District
No. 428 (AGM Insd)
|
|
|
5.00
|
|
|
|
01/01/23
|
|
|
|
782,471
|
|
|
965
|
|
|
Illinois Finance Authority, Northwestern Memorial
Hospital Ser 2009 B
|
|
|
5.375
|
|
|
|
08/15/24
|
|
|
|
1,033,776
|
|
|
925
|
|
|
Illinois Finance Authority, Resurrection Health
Center, Refg Ser 2009
|
|
|
6.125
|
|
|
|
05/15/25
|
|
|
|
920,181
|
|
|
415
|
|
|
Illinois Finance Authority, Rush University
Medical Center Obligated Group Ser 2009 A
|
|
|
7.25
|
|
|
|
11/01/38
|
|
|
|
454,317
|
|
|
650
|
|
|
Illinois Finance Authority, Swedish Covenant
Hospital Ser 2010 A (f)
|
|
|
5.75
|
|
|
|
08/15/29
|
|
|
|
643,961
|
|
|
690
|
|
|
Illinois Finance Authority, Swedish Covenant
Hospital Ser 2010 A (f)
|
|
|
6.00
|
|
|
|
08/15/38
|
|
|
|
684,383
|
|
|
2,780
|
|
|
Kendall Kane & Will Counties Community Unit School
District No. 308, Ser 2008 (AGM Insd) (b)
|
|
|
0.00
|
|
|
|
02/01/20
|
|
|
|
1,773,195
|
|
|
8,480
|
|
|
Metropolitan Pier & Exposition Authority,
McCormick Place Ser 2002 A (NATL-RE Insd)
|
|
|
0.00
|
(c)
|
|
|
06/15/26
|
|
|
|
6,585,568
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28,346,192
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indiana (1.6%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,700
|
|
|
Indiana Health & Educational Facilities Financing
Authority, Clarian Health Ser 2006 A
|
|
|
5.25
|
|
|
|
02/15/40
|
|
|
|
2,540,889
|
|
|
530
|
|
|
Rockport, Indian Michigan Power Company Project
Refg Ser 2009 B
|
|
|
6.25
|
|
|
|
06/01/25
|
|
|
|
590,261
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,131,150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Iowa (1.4%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,355
|
|
|
State of Iowa, IJOBS Program Ser 2009 A (a)(e)
|
|
|
5.00
|
|
|
|
06/01/25
|
|
|
|
1,471,946
|
|
|
1,015
|
|
|
State of Iowa, IJOBS Program Ser 2009 A (a)(e)
|
|
|
5.00
|
|
|
|
06/01/26
|
|
|
|
1,095,529
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,567,475
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Morgan Stanley Quality Municipal Securities*
Portfolio of Investments
§
January 31, 2010 (unaudited)
continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRINCIPAL
|
|
|
|
|
|
|
|
|
|
|
|
|
AMOUNT IN
|
|
|
|
|
COUPON
|
|
|
MATURITY
|
|
|
|
|
THOUSANDS
|
|
|
|
|
RATE
|
|
|
DATE
|
|
|
VALUE
|
|
|
|
|
|
|
Kansas (0.3%)
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
470
|
|
|
Kansas Development Finance Authority Hospital
Revenue, Adventist Health System Sunbelt Obligated
Group Ser 2009 C
|
|
|
5.50
|
%
|
|
|
11/15/29
|
|
|
$
|
495,808
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maine (0.0%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
60
|
|
|
Maine Health & Higher Educational Facilities
Authority, Ser 1993 D (AGM Insd)
|
|
|
5.50
|
|
|
|
07/01/18
|
|
|
|
60,202
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maryland (1.4%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
705
|
|
|
County of Baltimore, Oak Crest Village Ser 2007 A
|
|
|
5.00
|
|
|
|
01/01/37
|
|
|
|
617,326
|
|
|
690
|
|
|
Maryland Economic Development Corp., Ser B
|
|
|
5.75
|
|
|
|
06/01/35
|
|
|
|
699,605
|
|
|
1,440
|
|
|
Maryland Health & Higher Educational Facilities
Authority, King Farm Presbyterian Community 2006
Ser B
|
|
|
5.00
|
|
|
|
01/01/17
|
|
|
|
1,321,790
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,638,721
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Massachusetts (3.8%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,850
|
|
|
Massachusetts Health & Educational Facilities
Authority, Harvard University Ser A (a)
|
|
|
5.50
|
|
|
|
11/15/36
|
|
|
|
5,382,175
|
|
|
1,570
|
|
|
Massachusetts Health & Educational Facilities
Authority, Massachusetts Institute of Technology
Ser O (a)
|
|
|
5.50
|
|
|
|
07/01/36
|
|
|
|
1,742,730
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,124,905
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Michigan (0.5%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
900
|
|
|
City of Detroit Water Supply System, Refg Ser 2006
C (AGM Insd)
|
|
|
5.00
|
|
|
|
07/01/26
|
|
|
|
907,830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nebraska (2.0%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,740
|
|
|
Nebraska Public Power District, 2003 Ser A (AMBAC
Insd)
|
|
|
5.00
|
|
|
|
01/01/35
|
|
|
|
3,784,356
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nevada (1.9%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,000
|
|
|
County of Clark, Airport Sub Lien Ser 2004 A-1
(AMT) (NATL-RE & FGIC Insd)
|
|
|
5.50
|
|
|
|
07/01/20
|
|
|
|
3,068,880
|
|
|
410
|
|
|
Las Vegas Redevelopment Agency, Tax Increment Ser
2009 A
|
|
|
6.25
|
|
|
|
06/15/16
|
|
|
|
456,092
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,524,972
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Hampshire (0.8%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,500
|
|
|
City of Manchester, Water Works Ser 2003 (NATL-RE
& FGIC Insd)
|
|
|
5.00
|
|
|
|
12/01/34
|
|
|
|
1,523,445
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Jersey (2.4%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,300
|
|
|
New Jersey Transportation Trust Fund Authority,
Ser 2006 C (AGC Insd) (b)
|
|
|
0.00
|
|
|
|
12/15/26
|
|
|
|
1,789,875
|
|
|
3,000
|
|
|
Tobacco Settlement Financing Corp., Ser 2007-1 A
|
|
|
4.625
|
|
|
|
06/01/26
|
|
|
|
2,499,720
|
|
|
3,000
|
|
|
Tobacco Settlement Financing Corp., Ser 2007-1 B
(b)
|
|
|
0.00
|
|
|
|
06/01/41
|
|
|
|
193,530
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,483,125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Mexico (0.5%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
940
|
|
|
New Mexico Finance Authority, Senior Lien Public
Project Revolving Fund Ser 2008 A
|
|
|
5.00
|
|
|
|
06/01/27
|
|
|
|
1,018,180
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New York (13.0%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
460
|
|
|
Brooklyn Arena Local Development Corp., Ser 2009
|
|
|
6.25
|
|
|
|
07/15/40
|
|
|
|
473,588
|
|
|
190
|
|
|
Brooklyn Arena Local Development Corp., Ser 2009
|
|
|
6.375
|
|
|
|
07/15/43
|
|
|
|
194,836
|
|
|
980
|
|
|
City of New York, 2009 Subser A-1 (a)
|
|
|
5.25
|
|
|
|
08/15/27
|
|
|
|
1,053,773
|
|
|
980
|
|
|
City of New York, 2009 Subser A-1 (a)
|
|
|
5.25
|
|
|
|
08/15/28
|
|
|
|
1,053,773
|
|
|
5,000
|
|
|
Metropolitan Transportation Authority,
Transportation Ser 2003 B (NATL-RE Insd)
|
|
|
5.25
|
|
|
|
11/15/22
|
|
|
|
5,302,850
|
|
|
1,305
|
|
|
New York City Transitional Finance Authority, 2009
Subser A-1 (a)
|
|
|
5.00
|
|
|
|
05/01/28
|
|
|
|
1,394,390
|
|
|
1,045
|
|
|
New York City Transitional Finance Authority, 2009
Subser A-1 (a)
|
|
|
5.00
|
|
|
|
05/01/29
|
|
|
|
1,116,580
|
|
Morgan Stanley Quality Municipal Securities*
Portfolio of Investments
§
January 31, 2010 (unaudited)
continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRINCIPAL
|
|
|
|
|
|
|
|
|
|
|
|
|
AMOUNT IN
|
|
|
|
|
COUPON
|
|
|
MATURITY
|
|
|
|
|
THOUSANDS
|
|
|
|
|
RATE
|
|
|
DATE
|
|
|
VALUE
|
|
|
$
|
1,045
|
|
|
New York City Transitional Finance Authority, 2009
Subser A-1 (a)
|
|
|
5.00
|
%
|
|
|
05/01/30
|
|
|
$
|
1,116,580
|
|
|
1,950
|
|
|
New York City Trust for Cultural Resources, The
Museum of Modern Art, Refg Ser 2008-1 A (a)
|
|
|
5.00
|
|
|
|
04/01/27
|
|
|
|
2,111,052
|
|
|
705
|
|
|
New York State Dormitory Authority, New York
University (AMBAC Insd)
|
|
|
5.50
|
|
|
|
05/15/29
|
|
|
|
767,519
|
|
|
1,310
|
|
|
New York State Thruway Authority, Personal Income
Tax Transportation Ser 2009 A
|
|
|
5.00
|
|
|
|
03/15/25
|
|
|
|
1,430,022
|
|
|
6,000
|
|
|
Tobacco Settlement Financing Corp., State
Contingency Ser 2003 B-1C
|
|
|
5.50
|
|
|
|
06/01/21
|
|
|
|
6,376,680
|
|
|
2,000
|
|
|
Triborough Bridge & Tunnel Authority, Refg Ser
2002 B
|
|
|
5.25
|
|
|
|
11/15/19
|
|
|
|
2,187,060
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24,578,703
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ohio (3.5%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,000
|
|
|
American Municipal Power-Ohio Inc, Prairie State
Energy Campus Ser 2008 A (AGC Insd) (a)
|
|
|
5.25
|
|
|
|
02/15/33
|
|
|
|
1,040,746
|
|
|
5,000
|
|
|
County of Cuyahoga, Cleveland Clinic Ser 2003 A
|
|
|
6.00
|
|
|
|
01/01/32
|
|
|
|
5,248,150
|
|
|
265
|
|
|
Ohio State Water Development Authority, Ser 2009 A
|
|
|
5.875
|
|
|
|
06/01/33
|
|
|
|
288,585
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,577,481
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pennsylvania (1.6%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,000
|
|
|
Allegheny County Hospital Development Authority,
West Penn Allegheny Health Ser 2007 A
|
|
|
5.375
|
|
|
|
11/15/40
|
|
|
|
1,481,100
|
|
|
1,500
|
|
|
Philadelphia School District, Ser 2008 E (BHAC
Insd)
|
|
|
5.125
|
|
|
|
09/01/23
|
|
|
|
1,633,770
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,114,870
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Puerto Rico (1.2%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
875
|
|
|
Puerto Rico Sales Tax Financing Corp., Ser 2009 A
|
|
|
5.00
|
|
|
|
08/01/39
|
|
|
|
919,082
|
|
|
700
|
|
|
Puerto Rico Sales Tax Financing Corp., Ser 2010 A
(f)
|
|
|
5.375
|
|
|
|
08/01/39
|
|
|
|
691,320
|
|
|
750
|
|
|
Puerto Rico Sales Tax Financing Corp., Ser 2010 A
(f)
|
|
|
5.50
|
|
|
|
08/01/42
|
|
|
|
744,383
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,354,785
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rhode Island (0.8%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,500
|
|
|
Rhode Island Economic Development Corp., Airport
Refg Ser 2004 A (AMT) (AGM Insd)
|
|
|
5.00
|
|
|
|
07/01/21
|
|
|
|
1,512,960
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South Carolina (6.6%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,000
|
|
|
Charleston Educational Excellence Finance Corp.,
Charleston County School District Ser 2005
|
|
|
5.25
|
|
|
|
12/01/29
|
|
|
|
2,064,740
|
|
|
210
|
|
|
County of Richland, Environmental Improvement,
Paper Co. Ser 2007 A
|
|
|
4.60
|
|
|
|
09/01/12
|
|
|
|
212,701
|
|
|
4,565
|
|
|
Grand Strand Water & Sewer Authority, Refg Ser
2002 (AGM Insd)
|
|
|
5.375
|
|
|
|
06/01/19
|
|
|
|
4,944,488
|
|
|
40
|
|
|
Lexington County Health Services District, Inc.,
Ser 2007 A
|
|
|
5.00
|
|
|
|
11/01/16
|
|
|
|
43,188
|
|
|
4,000
|
|
|
South Carolina State Public Service Authority,
Santee Cooper Ser 2003 A (AMBAC Insd) (a)
|
|
|
5.00
|
|
|
|
01/01/27
|
|
|
|
4,195,432
|
|
|
1,000
|
|
|
South Carolina Transportation Infrastructure Bank,
Ser 2002 A (AMBAC Insd)
|
|
|
5.25
|
|
|
|
10/01/22
|
|
|
|
1,050,830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,511,379
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tennessee (0.6%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,040
|
|
|
Tennessee Energy Acquisition Corp., Ser 2006 A
|
|
|
5.25
|
|
|
|
09/01/19
|
|
|
|
1,059,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Texas (15.8%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,000
|
|
|
Alliance Airport Authority, Federal Express Corp.
Refg Ser 2006 (AMT)
|
|
|
4.85
|
|
|
|
04/01/21
|
|
|
|
1,975,100
|
|
|
590
|
|
|
Bexar County Health Facilities Development Corp.
(f)
|
|
|
6.20
|
|
|
|
07/01/45
|
|
|
|
592,207
|
|
|
1,500
|
|
|
City of Arlington, Special Tax Ser 2009
|
|
|
5.00
|
|
|
|
08/15/28
|
|
|
|
1,525,065
|
|
|
1,360
|
|
|
City of Austin, Water & Wastewater ROLS RR II
R-574 (AGM Insd)
|
|
|
14.197
|
(g)
|
|
|
05/15/10
|
|
|
|
1,530,571
|
|
Morgan Stanley Quality Municipal Securities*
Portfolio of Investments
§
January 31, 2010 (unaudited)
continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRINCIPAL
|
|
|
|
|
|
|
|
|
|
|
|
|
AMOUNT IN
|
|
|
|
|
COUPON
|
|
|
MATURITY
|
|
|
|
|
THOUSANDS
|
|
|
|
|
RATE
|
|
|
DATE
|
|
|
VALUE
|
|
|
$
|
5,000
|
|
|
City of Houston, Combined Utility First Lien Refg
Ser 2004 A (AGM Insd)
|
|
|
5.25
|
%
|
|
|
05/15/25
|
|
|
$
|
5,247,300
|
|
|
2,350
|
|
|
City of Houston, Hotel Occupancy Ser 2001 B (CR)
(AGM & AMBAC Insd) (b)
|
|
|
0.00
|
|
|
|
09/01/25
|
|
|
|
1,022,508
|
|
|
1,530
|
|
|
County of Harris, Ser 2007 C (AGM Insd)
|
|
|
5.25
|
|
|
|
08/15/31
|
|
|
|
1,756,256
|
|
|
575
|
|
|
Friendswood Independent School District,
Schoolhouse Ser 2008 (PSF-GTD)
|
|
|
5.00
|
|
|
|
02/15/25
|
|
|
|
628,849
|
|
|
1,360
|
|
|
Harris County Health Facilities Development Corp.,
TECO Project Ser 2008 (AGC Insd)
|
|
|
5.25
|
|
|
|
11/15/23
|
|
|
|
1,466,189
|
|
|
350
|
|
|
Harris County Industrial Development Corp., Deer
Park Refinancing Project
|
|
|
5.00
|
|
|
|
02/01/23
|
|
|
|
349,965
|
|
|
5,200
|
|
|
North Texas Tollway Authority, Refg Ser 2008 D
(AGC Insd) (b)
|
|
|
0.00
|
|
|
|
01/01/28
|
|
|
|
1,872,832
|
|
|
1,065
|
|
|
North Texas Tollway Authority, Refg Ser 2008 D
(AGC Insd) (b)
|
|
|
0.00
|
|
|
|
01/01/31
|
|
|
|
314,228
|
|
|
1,000
|
|
|
Tarrant County Cultural Education Facilities
Finance Corp., Air Force Village II Inc Ser 2007
|
|
|
5.125
|
|
|
|
05/15/37
|
|
|
|
833,020
|
|
|
4,000
|
|
|
Tarrant Regional Water District, Texas, Refg &
Impr Ser 2002 (AGM Insd)
|
|
|
5.25
|
|
|
|
03/01/17
|
|
|
|
4,422,560
|
|
|
1,665
|
|
|
Texas A&M University, Financing System Ser 2009 A
|
|
|
5.00
|
|
|
|
05/15/26
|
|
|
|
1,826,289
|
|
|
510
|
|
|
Texas Private Activity Bond Surface Transportation
Corp., Senior Lien
|
|
|
6.875
|
|
|
|
12/31/39
|
|
|
|
533,190
|
|
|
1,000
|
|
|
University of Houston, Ser 2008 (AGM Insd) (a)
|
|
|
5.00
|
|
|
|
02/15/33
|
|
|
|
1,026,753
|
|
|
3,000
|
|
|
West Harris County Regional Water Authority, Water
Ser 2005 (AGM Insd)
|
|
|
5.00
|
|
|
|
12/15/24
|
|
|
|
3,098,040
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30,020,922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Utah (0.8%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,500
|
|
|
Intermountain Power Agency, Ser 2003 A (AGM Insd)
|
|
|
5.00
|
|
|
|
07/01/21
|
|
|
|
1,612,275
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Virginia (7.4%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,250
|
|
|
Fairfax County Economic Development Authority,
Goodwin House, Inc. Ser 2007
|
|
|
5.125
|
|
|
|
10/01/42
|
|
|
|
1,131,950
|
|
|
10,000
|
|
|
Fairfax County Industrial Development Authority,
Inova Health Refg Ser 1993 A
|
|
|
5.25
|
|
|
|
08/15/19
|
|
|
|
10,815,200
|
|
|
2,000
|
|
|
Prince William County Service Authority, Water &
Sewer Refg Ser 2003
|
|
|
5.00
|
|
|
|
07/01/21
|
|
|
|
2,151,640
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,098,790
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Washington (5.5%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,705
|
|
|
Grant County Public Utility District No. 2 Priest
Rapids, Wanapum Hydroelectric 2005 Ser A (NATL-RE
& FGIC Insd)
|
|
|
5.00
|
|
|
|
01/01/34
|
|
|
|
1,724,198
|
|
|
3,450
|
|
|
Port of Seattle, Passenger Facility Ser 1998 A
(NATL-RE Insd)
|
|
|
5.00
|
|
|
|
12/01/23
|
|
|
|
3,458,522
|
|
|
2,380
|
|
|
State of Washington, Various Purpose Ser 2010 A
(a)
|
|
|
5.00
|
|
|
|
08/01/29
|
|
|
|
2,542,497
|
|
|
2,500
|
|
|
State of Washington, Various Purpose Ser 2010 A
(a)
|
|
|
5.00
|
|
|
|
08/01/30
|
|
|
|
2,670,691
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,395,908
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wisconsin (0.6%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,000
|
|
|
State of Wisconsin, Ser 2009 A
|
|
|
5.625
|
|
|
|
05/01/28
|
|
|
|
1,104,240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Tax-Exempt Municipal Bonds
(Cost $280,831,370)
|
|
|
|
|
|
|
|
|
|
|
282,615,492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Morgan Stanley Quality Municipal Securities*
Portfolio of Investments
§
January 31, 2010 (unaudited)
continued
|
|
|
|
|
|
|
|
|
|
|
|
|
NUMBER OF
|
|
|
|
|
|
|
|
|
|
|
|
SHARES (000)
|
|
|
|
|
|
|
|
|
|
VALUE
|
|
|
|
|
Short-Term Investment (h) (0.7%)
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Company
|
|
|
|
|
|
|
|
|
|
1,367
|
|
|
Morgan Stanley Institutional Liquidity Funds Tax-Exempt Portfolio Institutional Class
(Cost $1,367,388)
|
|
|
|
|
|
|
1,367,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments
(Cost $282,198,758) (i)(j)
|
|
|
149.8
|
%
|
|
|
283,982,880
|
|
|
|
|
|
Other Assets in Excess of Liabilities
|
|
|
0.1
|
|
|
|
138,508
|
|
|
|
|
|
Floating Rate Note and Dealer Trusts Obligations Related to Securities Held
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes with interest rates ranging from 0.18% to 0.50% at January 31, 2010 and contractual maturities of collateral ranging
from 01/01/22 to 08/15/42 (k)
|
|
|
(20.9
|
)
|
|
|
(39,547,000
|
)
|
|
|
|
|
Preferred Shares of Beneficial Interest
|
|
|
(29.0
|
)
|
|
|
(55,000,000
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets Applicable to Common Shareholders
|
|
|
100.0
|
%
|
|
$
|
189,574,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: The categories of investments are shown as a percentage of net assets applicable to common shareholders.
|
|
AMT
|
|
Alternative Minimum Tax.
|
|
BANs
|
|
Bond Anticipation Notes.
|
|
COPs
|
|
Certificates of Participation.
|
|
CR
|
|
Custodial Receipts.
|
|
PSF
|
|
Texas Permanent School Fund Guarantee Program.
|
|
ROLS
|
|
Reset Option Longs.
|
|
(a)
|
|
Underlying security related to inverse floater entered into by the Trust.
|
|
(b)
|
|
Capital appreciation bond.
|
|
(c)
|
|
Security is a step-up bond where the coupon increases on a predetermined future date.
|
|
(d)
|
|
Prefunded to call date shown.
|
|
(e)
|
|
Security is subject to a shortfall agreement which may require the Trust to pay amounts to a counterparty in the event of a significant decline in the market value of the security underlying the inverse
floater. In case of a shortfall, the maximum potential amount of payments the Trust could ultimately be required to make under the agreement is $4,655,000. However, such shortfall payment would be reduced by
the proceeds from the sale of the security underlying the inverse floater.
|
|
(f)
|
|
Security purchased on a when-issued basis.
|
|
(g)
|
|
Current coupon rate for an inverse floating rate municipal obligation. This rate resets periodically as the auction rate on the related security changes. Position in an inverse floating rate municipal
obligation has a total value of $1,530,571 which represents 0.8% of net assets applicable to common shareholders.
|
|
(h)
|
|
The Trust invests in Morgan Stanley Institutional Liquidity Funds Tax-Exempt Portfolio Institutional Class, an open-end management investment company managed by the Investment Adviser. Investment
advisory fees paid by the Trust are reduced by an amount equal to the advisory and administrative service fees paid by Morgan Stanley Institutional Liquidity Funds Tax-Exempt Portfolio Institutional
Class with respect to assets invested by the Trust in Morgan Stanley Institutional Liquidity Funds Tax-Exempt Portfolio Institutional Class.
|
|
(i)
|
|
Securities have been designated as collateral in connection with securities purchased on a when-issued basis and inverse floating rate municipal obligations.
|
|
(j)
|
|
The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes.
|
|
(k)
|
|
Floating rate note obligations related to securities held The Trust enters into transactions in which it transfers to Dealer Trusts (Dealer Trusts), fixed rate bonds in exchange for cash and residual
interests in the Dealer Trusts assets and cash flows, which are in the form of inverse floating rate investments. The Dealer Trusts fund the purchases of the fixed rate bonds by issuing floating rate notes to
third parties and allowing the Trust to retain residual interest in the bonds. The Trust enters into shortfall agreements with the Dealer Trusts which commit the Trust to pay the Dealer Trusts, in certain
circumstances, the difference between the liquidation value of the fixed rate bonds held by the Dealer Trusts and the liquidation value of the floating rate notes held by third parties, as well as any
shortfalls in interest cash flows. The residual interests held by the Trust (inverse floating rate investments) include the right of the Trust (1) to cause the holders of the floating rate notes to tender
their notes at par at the next interest rate reset date, and (2) to transfer the municipal bond from the Dealer Trusts to the Trust, thereby collapsing the Dealer Trusts. The Trust accounts for the transfer of
bonds to the Dealer Trusts as secured borrowings, with the securities transferred remaining in the Trusts investment assets, and the related floating rate notes reflected as Trust liabilities. The notes
issued by the Dealer Trusts have interest rates that reset weekly and the floating rate note holders have the option to tender their notes to the Dealer Trusts for redemption at par at each reset date. At
January 31, 2010, Trust investments with a value of $66,945,635 are held by the Dealer Trusts and serve as collateral for the $39,547,000 in floating rate note obligations outstanding at that date.
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Bond Insurance:
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AGC
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Assured Guaranty Corporation.
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AGM
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Assured Guaranty Municipal Corporation.
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AMBAC
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AMBAC Assurance Corporation.
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BHAC
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Berkshire Hathaway Assurance Corporation.
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FGIC
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Financial Guaranty Insurance Company.
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Morgan Stanley Quality Municipal Securities*
Portfolio of Investments
§
January 31, 2010 (unaudited)
continued
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NATL-RE
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National Public Finance Guarantee Corporation.
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XLCA
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XL Capital Assurance Inc.
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Morgan Stanley Quality Municipal Securities*
Notes to the Portfolio of Investments
§
January 31, 2010 (unaudited)
Fair Valuation Measurements
Fair value is defined as the price that the Trust would receive to sell an investment or pay to
transfer a liability in a timely transaction with an independent buyer in the principal market, or
in the absence of a principal market the most advantageous market for the investment or liability.
GAAP utilizes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions
market participants would use in pricing an asset or liability developed based on market data
obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that
reflect the reporting entitys own assumptions about the assumptions market participants would use
in pricing an asset or liability developed based on the best information available in the
circumstances (unobservable inputs) and to establish classification of fair value measurements for
disclosure purposes. Various inputs are used in determining the value of the Trusts investments.
The inputs are summarized in the three broad levels listed below.
Level 1 unadjusted quoted prices in active markets for identical investments
Level 2 other significant observable inputs (including quoted prices for similar
investments, interest rates, prepayment speeds, credit risk, etc.)
Level 3 significant unobservable inputs (including the Trusts own assumptions in
determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk
associated with investing in those securities and the determination of the significance of a
particular input to the fair value measurement in its entirety requires judgment and considers
factors specific to each security.
The following is the summary of the inputs used as of January 31, 2010 in valuing the Trusts
investments carried at fair value:
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FAIR VALUE MEASUREMENTS AT JANUARY 31, 2010 USING
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UNADJUSTED
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QUOTED PRICES IN
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OTHER
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ACTIVE MARKET FOR
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SIGNIFICANT
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SIGNIFICANT
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IDENTICAL
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OBSERVABLE
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UNOBSERVABLE
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INVESTMENTS
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INPUTS
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INPUTS
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INVESTMENT TYPE
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TOTAL
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(LEVEL 1)
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(LEVEL 2)
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(LEVEL 3)
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Tax-Exempt Municipal Bonds
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$
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282,615,492
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$
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282,615,492
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Short-Term Investment Investment Company
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1,367,388
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$
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1,367,388
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Total
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$
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283,982,880
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$
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1,367,388
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$
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282,615,492
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Valuation of Investments
(1) portfolio securities are valued by
an outside independent pricing service approved by the Trustees. The pricing service uses both a
computerized grid matrix of tax-exempt securities and evaluations by its staff, in each case based
on information concerning market transactions and quotations from dealers which reflect the mean
between the last reported bid and ask price. The portfolio securities are thus valued by reference
to a combination of transactions and quotations for the same or other securities believed to be
comparable in quality, coupon, maturity, type of issue, call provisions, trading characteristics
and other features deemed to be relevant. The Trustees believe that timely and reliable market
quotations are generally not readily available for purposes of valuing tax-exempt securities and
that the valuations supplied by the pricing service are more likely to represent the fair value of
such securities; (2) futures are valued at the latest sale price on the commodities
exchange on which they trade unless it is determined that such price does not reflect their market
value, in which case they will be valued at their fair value as determined in good faith under
procedures established by and under the supervision of the Trustees; (3)
interest rate swaps are marked-to-market daily based upon quotations from market makers;
(4) investments in open-end mutual funds, including the Morgan Stanley Institutional
Liquidity Funds, are valued at the net asset value as of the close of each business day; and
(5) short-term debt securities having a maturity date of more than sixty days at time of
purchase are valued on a mark-to-
market basis until sixty days prior to maturity and thereafter at amortized cost based on their
value on
the 61st day. Short-term debt securities having a maturity date of sixty days or less at
the time of purchase are valued at amortized cost, which approximates market value.
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*
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Morgan Stanley announced on October 19, 2009 that it has entered into a definitive agreement
to sell substantially all of its retail asset management business to Invesco Ltd. (Invesco), a
leading global investment management company. The Trustees of the Trust approved an Agreement and
Plan of Reorganization (the Plan). Pursuant to the Plan, substantially all of the assets of the
Trust would be combined with those of a newly organized mutual fund advised by an affiliate of
Invesco Ltd. (the New Trust). Pursuant to the Plan, shareholders of the Trust would become
shareholders of the New Trust, receiving shares of such New Trust equal to the value of their
holdings in the Trust. The Plan is subject to the approval of the Trusts shareholders at a
special meeting of shareholders anticipated to be held during the second quarter of 2010.
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Item 2. Controls and Procedures.
(a) The Trusts principal executive officer and principal financial officer have concluded that the
Trusts 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 Commissions 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 Trusts internal control over financial reporting that occurred
during the registrants fiscal quarter that has materially affected, or is reasonably likely to
materially affect, the Trusts 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.
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.
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Morgan Stanley Quality Municipal Securities
|
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/s/ Randy Takian
|
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Randy Takian
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Principal Executive Officer
|
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March 23, 2010
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.
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/s/ Randy Takian
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Randy Takian
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Principal Executive Officer
|
|
March 23, 2010
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/s/ Francis Smith
|
|
Francis Smith
|
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Principal Financial Officer
|
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March 23, 2010
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