<PAGE> 1
MORGAN STANLEY DEAN WITTER INSURED MUNICIPAL INCOME TRUST Two World Trade Center
LETTER TO THE SHAREHOLDERS April 30, 2000 New York, New York 10048
DEAR SHAREHOLDER:
The U.S. economy continued its unprecedented expansion into the new year. Strong
growth pushed the unemployment rate to a 30-year low. Rising commodity prices
heightened concern about inflation. The price of oil moved above $30 per barrel
prior to ending April at $25 per barrel. Between June 1999 and March 2000, the
Federal Reserve Board raised the federal funds rate in five, 25 basis-point
moves to reach 6.00 percent. The Fed subsequently again demonstrated its
resistance to inflation by raising the federal funds rate another 50 basis
points to 6.50 percent in May. Economic growth and a less accommodative monetary
policy caused long-term interest rates to increase throughout 1999. In February,
the U.S. Treasury announced plans to retire debt with the federal budget
surplus. This precipitated a 50-75 basis-point rally in longer Treasury
maturities.
MUNICIPAL MARKET CONDITIONS
The long-term insured municipal index began 1999 near a record low yield of 5.05
percent but increased to 5.97 percent by calendar year-end. This index reached a
high of 6.18 percent in January 2000 before ending April at 5.93 percent.
Because bond prices move inversely to changes in interest rates, higher yields
caused bond prices to decline significantly last year and improve modestly in
the first four months of 2000.
The ratio of municipal yields as a percentage of Treasury yields has been used
historically as a measure of relative value. Over the past five years the ratio
has ranged between an average high of 93 percent and an average low of 85
percent. The increase in the ratio from 92 percent at the end of 1999 to 99
percent at the end of April 2000 was primarily the result of the magnitude of
the rally in long-term Treasuries. A rising yield ratio indicates weaker
relative performance by municipals.
<PAGE> 2
MORGAN STANLEY DEAN WITTER INSURED MUNICIPAL INCOME TRUST
LETTER TO THE SHAREHOLDERS April 30, 2000, continued
Higher interest rates reduced municipal market underwriting in 1999. New-issue
volume declined 20 percent last year. Refunding activity, the most
interest-rate-sensitive component of supply, was down more than 50 percent. In
the first four months of this year, volume was 30 percent lower than in the same
period last year.
[30-YEAR BOND YIELDS 1994-2000 CHART]
<TABLE>
<CAPTION>
Insured U.S. Insured Municipal Yields as a
Municipal Yields Treasury Yields Percentage of U.S. Treasury Yields
<S> <C> <C> <C>
1994 5.40% 6.34% 85.17%
5.40 6.24 86.54
5.80 6.66 87.09
6.40 7.09 90.27
6.35 7.32 86.75
6.25 7.43 84.12
6.50 7.61 85.41
6.25 7.39 84.57
6.30 7.45 84.56
6.55 7.81 83.87
6.75 7.96 84.80
7.00 8.00 87.50
6.75 7.88 85.66
1995 6.40 7.70 83.12
6.15 7.44 82.66
6.15 7.43 82.77
6.20 7.34 84.47
5.80 6.66 87.09
6.10 6.62 92.15
6.10 6.86 88.92
6.00 6.66 90.09
5.95 6.48 91.82
5.75 6.33 90.84
5.50 6.14 89.58
5.35 5.94 90.07
1996 5.40 6.03 89.55
5.60 6.46 86.69
5.85 6.66 87.84
5.95 6.89 86.36
6.05 6.99 86.55
5.90 6.89 85.63
5.85 6.97 83.93
5.90 7.11 82.98
5.70 6.93 82.25
5.65 6.64 85.09
5.50 6.35 86.61
5.60 6.63 84.46
1997 5.70 6.79 83.95
5.65 6.80 83.09
5.90 7.10 83.10
5.75 6.94 82.85
5.65 6.91 81.77
5.60 6.78 82.60
5.30 6.30 84.13
5.50 6.61 83.21
5.40 6.40 84.38
5.35 6.15 86.99
5.30 6.05 87.60
5.15 5.92 86.99
1998 5.15 5.80 88.79
5.20 5.92 87.84
5.25 5.93 88.53
5.35 5.95 89.92
5.20 5.80 89.66
5.20 5.65 92.04
5.18 5.71 90.72
5.03 5.27 95.45
4.95 5.00 99.00
5.05 5.16 97.87
5.00 5.06 98.81
5.05 5.10 99.02
1999 5.00 5.09 98.23
5.10 5.58 91.40
5.15 5.63 91.47
5.20 5.66 91.87
5.30 5.83 90.91
5.47 5.96 91.78
5.55 6.10 90.98
5.75 6.06 94.88
5.85 6.05 96.69
6.03 6.16 97.89
6.00 6.29 95.39
5.97 6.48 92.13
2000 6.18 6.49 95.22
6.04 6.14 98.37
5.82 5.83 99.83
5.91 5.96 99.16
</TABLE>
Source: Municipal Market Data - A Division of Thomson Financial Municipal Group
and Bloomberg L.P.
PERFORMANCE
During the six-month period ended April 30, 2000, the net asset value (NAV) of
Morgan Stanley Dean Witter Insured Municipal Income Trust (IIM) increased from
$13.69 to $13.86 per share. Based on this change, plus a reinvestment of
tax-free dividends totaling $0.435 per share, the Trust's total NAV return was
4.74 percent. IIM's value on the New York Stock Exchange (NYSE) decreased from
$13.25 to $13.125 per share during this period. Based on this change plus
reinvestment of tax-free dividends, IIM's total market return was 2.48 percent.
On April 30, 2000, IIM's share price was at a 5.30 percent discount to its NAV.
2
<PAGE> 3
MORGAN STANLEY DEAN WITTER INSURED MUNICIPAL INCOME TRUST
LETTER TO THE SHAREHOLDERS April 30, 2000, continued
Monthly dividends for the second quarter of 2000, declared in March, were
unchanged at $0.0725 per share. The Trust's level of undistributed net
investment income was $0.083 per share on April 30, 2000, versus $0.117 per
share six months earlier.
PORTFOLIO STRUCTURE
The Trust's investments were diversified among 13 long-term sectors and 75
credits. At the end of April, the portfolio's average maturity was 19 years.
Average duration, a measure of sensitivity to interest rate changes, was 9.5
years. Issues in the refunded bond category comprised 8 percent of net assets.
These bonds have been refinanced and will be redeemed on the dates shown in the
portfolio. Current information on the portfolio's credit enhancements, sector
distribution and geographic diversification is provided in the accompanying
charts and tables. Optional call provisions, by year, with their respective cost
(book) yields are also shown.
THE IMPACT OF LEVERAGING
As discussed in previous shareholder reports, the total income available for
distribution to common shareholders includes incremental income provided by the
Trust's outstanding Auction Rate Preferred shares (ARPS). ARPS dividends reflect
prevailing short-term interest rates on maturities normally ranging from one
week to one year. Incremental income to common shareholders depends on two
factors. The first factor is the amount of ARPS outstanding, while the second is
the spread between the portfolio's cost yield and ARPS expenses (ARPS auction
rate and expenses). The greater the spread and amount of ARPS outstanding, the
greater the amount of incremental income available for distribution to common
shareholders. The level of net investment income available for distribution to
common shareholders varies with the level of short-term interest rates. ARPS
leverage also increases the price volatility of common shares and has the effect
of extending portfolio duration.
During the six-month period, ARPS leverage contributed approximately $0.04 per
share to common share earnings. Weekly ARPS yields ranged between 3.00 percent
and 5.30 percent. In comparison, the yield on 1-year municipal notes increased
from 3.77 percent at the end of October 1999 to 4.23 percent at the end of
April. The Trust's five ARPS series totaling $155 million represented 29 percent
of net assets.
3
<PAGE> 4
MORGAN STANLEY DEAN WITTER INSURED MUNICIPAL INCOME TRUST
LETTER TO THE SHAREHOLDERS April 30, 2000, continued
LOOKING AHEAD
The Federal Reserve Board has expressed concern about consumer wealth and rising
prices. We anticipate that the central bank will continue to increase short-term
interest rates in an effort to slow the economy. We believe municipal bonds
continue to offer tax-conscious investors good long-term value.
The Trust's procedure for reinvestment of all dividends and distributions on
common shares is through purchases in the open market. This method helps support
the market value of the Trust's shares. In addition, we would like to remind you
that the Trustees have approved a procedure whereby the Trust may, when
appropriate, purchase shares in the open market or in privately negotiated
transactions at a price not above market value or net asset value, whichever is
lower at the time of purchase. The Trust may also utilize procedures to reduce
or eliminate the amount of outstanding ARPS, including their purchase in the
open market or in privately negotiated transactions. During the six-month period
ended April 30, 2000, the Trust purchased and retired 551,000 shares of common
stock at a weighted average market discount of 6.83 percent. The anti-dilutive
effect of acquiring treasury shares is reported in the table of Financial
Highlights on page 18.
We appreciate your ongoing support of Morgan Stanley Dean Witter Insured
Municipal Income Trust and look forward to continuing to serve your investment
needs.
<TABLE>
<S> <C>
Very truly yours,
/s/ CHARLES A. FIUMEFREDDO /s/ MITCHELL M. MERIN
CHARLES A. FIUMEFREDDO MITCHELL M. MERIN
Chairman of the Board President
</TABLE>
4
<PAGE> 5
MORGAN STANLEY DEAN WITTER INSURED MUNICIPAL INCOME TRUST
LETTER TO THE SHAREHOLDERS April 30, 2000, continued
[LARGEST SECTORS CHART]
LARGEST SECTORS AS OF APRIL 30, 2000
(% OF NET ASSETS)
<TABLE>
<S> <C>
ELECTRIC 19%
WATER & SEWER 13%
HOSPITAL 12%
IDR/PCR* 11%
MORTGAGE 9%
REFUNDED 8%
GENERAL OBLIGATION 8%
TRANSPORTATION 7%
</TABLE>
* INDUSTRIAL DEVELOPMENT/POLLUTION CONTROL REVENUE
PORTFOLIO STRUCTURE IS SUBJECT TO CHANGE.
[CREDIT ENHANCEMENTS PIE CHART]
CREDIT ENHANCEMENTS AS OF APRIL 30, 2000
(% OF TOTAL LONG-TERM PORTFOLIO)
<TABLE>
<S> <C>
MBIA 40%
AMBAC 23%
FGIC 20%
FSA 17%
</TABLE>
PORTFOLIO STRUCTURE IS SUBJECT TO CHANGE.
<TABLE>
<CAPTION>
GEOGRAPHIC SUMMARY OF INVESTMENTS
---------------------------------
<S> <C>
BASED ON MARKET VALUE AS A PERCENT OF NET ASSETS
APRIL 30, 2000
ALABAMA 0.7%
ALASKA 0.5
ARIZONA 1.9
CALIFORNIA 4.6
COLORADO 1.4
CONNECTICUT 2.8
DISTRICT OF COLUMBIA 3.0
FLORIDA 3.1
GEORGIA 0.9
HAWAII 1.4
ILLINOIS 6.0
INDIANA 5.1
KENTUCKY 3.3
LOUISIANA 2.7
MAINE 2.0
MASSACHUSETTS 3.7
MICHIGAN 3.6
MINNESOTA 0.4
MISSOURI 0.8
MONTANA 1.0
NEVADA 4.4
NEW JERSEY 2.3
NEW YORK 1.0
NORTH CAROLINA 3.6
OHIO 0.8
PENNSYLVANIA 6.8
RHODE ISLAND 2.8
SOUTH CAROLINA 4.4
TENNESSEE 1.7
TEXAS 8.2
UTAH 0.7
VIRGINIA 2.2
WASHINGTON 5.3
WEST VIRGINIA 2.4
WISCONSIN 2.7
TOTAL 98.2%
PORTFOLIO STRUCTURE IS SUBJECT TO CHANGE.
</TABLE>
5
<PAGE> 6
MORGAN STANLEY DEAN WITTER INSURED MUNICIPAL INCOME TRUST
LETTER TO THE SHAREHOLDERS April 30, 2000, continued
<TABLE>
<CAPTION>
CALL AND COST (BOOK) YIELD STRUCTURE APRIL 30, 2000
[BAR CHART]
WEIGHTED AVERAGE
CALL PROTECTION: 6 YEARS
YEARS BONDS CALLABLE PERCENT CALLABLE*
<S> <C>
2000 2%
2001 0%
2002 14%
2003 55%
2004 3%
2005 2%
2006 1%
2007 1%
2008 4%
2009 6%
2010+ 12%
</TABLE>
<TABLE>
<CAPTION>
COST (BOOK) YIELD **
[CHART]
WEIGHTED AVERAGE
BOOK YIELD: 5.8%
<S> <C>
2000 6.0%
2001
2002 5.8%
2003 5.8%
2004 5.8%
2005 5.9%
2006 5.9%
2007 5.6%
2008 5.3%
2009 5.6%
2010+ 5.7%
</TABLE>
* % BASED ON LONG-TERM PORTFOLIO.
** COST OR "BOOK" YIELD IS THE ANNUAL INCOME EARNED ON A PORTFOLIO INVESTMENT
BASED ON ITS ORIGINAL PURCHASE PRICE BEFORE TRUST OPERATING EXPENSES. FOR
EXAMPLE, THE TRUST EARNED A BOOK YIELD OF 5.8% ON 14% OF THE BONDS IN THE
LONG-TERM PORTFOLIO THAT ARE CALLABLE IN 2002.
PORTFOLIO STRUCTURE IS SUBJECT TO CHANGE.
6
<PAGE> 7
MORGAN STANLEY DEAN WITTER INSURED MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS April 30, 2000 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
-----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
TAX-EXEMPT MUNICIPAL BONDS (98.0%)
General Obligation (7.8%)
District of Columbia,
$ 5,000 Refg Ser 1993 B (AMBAC).................................... 5.50% 06/01/09 $ 5,035,300
6,000 Refg Ser 1993 B (FSA)...................................... 5.50 06/01/10 6,027,360
10,000 Cook County, Illinois, Ser B (FGIC)......................... 5.50 11/15/22 9,374,300
5,000 River Rouge School District, Michigan, 1993 Bldg & Site
Unltd Tax (FSA)............................................ 5.625 05/01/22 4,855,700
3,000 Vicksburg Community Schools, Michigan, 1993 Refg (MBIA)..... 5.625 05/01/20 2,927,910
6,000 Clark County Sanitation District, Nevada, Refg 1993
(FGIC)..................................................... 5.70 07/01/12 6,069,000
8,000 Washoe County, Nevada, Reno - Sparks Convention Ltd Tax Ser
1993 A (FGIC).............................................. 5.75 07/01/22 7,803,600
-------- -----------
43,000 42,093,170
-------- -----------
Educational Facilities Revenue (3.4%)
4,000 Alabama State University, General Tuition & Fee Ser 1993
(MBIA)..................................................... 5.70 05/01/15 4,017,240
3,000 District of Columbia, American Association for the
Advancement of Science Ser 1997 (AMBAC).................... 5.125 01/01/27 2,627,790
4,000 Illinois Educational Facilities Authority, DePaul University
Refg Ser 1997 (AMBAC)...................................... 5.50 10/01/19 3,816,240
3,000 Indiana University, Student Fee Ser J (FGIC)................ 5.00 08/01/18 2,675,730
Rhode Island Health & Educational Building Corporation,
2,500 Providence College Ser 1993 (MBIA)......................... 5.60 11/01/15 2,471,925
2,500 Providence College Ser 1993 (MBIA)......................... 5.60 11/01/22 2,386,275
-------- -----------
19,000 17,995,200
-------- -----------
Electric Revenue (18.7%)
16,000 Redding, California, Ser 1993 A COPs (FGIC)................. 5.684 06/01/19 15,660,000
Massachusetts Municipal Wholesale Electric Company,
5,000 1993 Ser A (AMBAC)......................................... 5.00 07/01/10 4,867,500
10,000 1993 Ser A (AMBAC)......................................... 5.45 07/01/18 9,322,200
20,000 North Carolina Municipal Power Agency #1, Catawba Ser 1993
(MBIA)..................................................... 5.60 01/01/20 19,081,400
4,000 Piedmont Municipal Power Agency, South Carolina, Refg Ser
1993 (MBIA)................................................ 5.375 01/01/25 3,718,680
11,600 South Carolina Public Service Authority, 1993 Refg Ser A
(MBIA)..................................................... 5.50 07/01/21 10,988,448
10,000 Lower Colorado River Authority, Texas, Refg Ser 1999 A
(FSA)...................................................... 5.875 05/15/16 10,139,700
8,000 Texas Municipal Power Agency, Refg Ser 1993 (MBIA).......... 5.25 09/01/12 7,814,880
10,000 Washington Public Power Supply System, Nuclear Proj #1 Refg
Ser 1993 A (MBIA).......................................... 5.70 07/01/17 9,848,500
10,000 Wisconsin Public Power Incorporated, Refg Ser 1993 A
(AMBAC).................................................... 5.25 07/01/21 9,073,200
-------- -----------
104,600 100,514,508
-------- -----------
Hospital Revenue (11.5%)
5,000 Mesa Industrial Development Authority, Arizona, Discovery
Health Ser 1999 A (MBIA)................................... 5.875 01/01/16 5,072,800
2,100 District of Columbia, Children's Hospital Refg Ser 1992 A
(FGIC)..................................................... 6.25 07/15/10 2,168,649
5,000 Sarasota County Public Hospital Board, Florida, Sarasota
Memorial Hospital Refg Ser 1998 B (MBIA)................... 5.25 07/01/24 4,607,900
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE> 8
MORGAN STANLEY DEAN WITTER INSURED MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS April 30, 2000 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
-----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 5,000 Fulton-DeKalb Hospital Authority, Georgia, Grady Memorial
Hospital Refg Ser 1993 (MBIA).............................. 5.50% 01/01/20 $ 4,746,250
4,000 Indiana Health Facilities Financing Authority, Deaconess
Hospital Inc Refg Ser 1993 (MBIA).......................... 5.75 03/01/15 3,991,760
5,000 Kentucky Economic Development Finance Authority, St
Elizabeth Medical Center Inc Ser 1993 A (FGIC)............. 6.00 12/01/22 5,036,000
3,935 Maine Health & Higher Educational Facilities Authority, Ser
1993 A (FSA)............................................... 5.50 07/01/23 3,666,791
5,500 Massachusetts Health & Educational Facilities Authority,
Lahey Clinic Medical Center Ser B (MBIA)................... 5.625 07/01/15 5,419,590
5,000 Missouri Health & Educational Facilities Authority, SSM
Health Care Ser 1998 A (MBIA).............................. 5.00 06/01/22 4,370,050
5,000 Washington County Hospital Authority, Pennsylvania,
Washington Hospital Ser 1993 (AMBAC)....................... 5.625 07/01/23 4,730,600
4,000 Chattanooga-Hamilton County Hospital Authority, Tennessee,
Erlanger Medical Center Refg Ser 1993 (FSA)................ 5.50 10/01/13 3,962,400
5,075 Amarillo Health Facilities Corporation, Texas, Baptist St
Anthony's Hospital Ser 1998 (FSA).......................... 5.50 01/01/17 4,955,585
4,000 Washington Health Care Facilities, Swedish Health Services
Ser 1998 (AMBAC)........................................... 5.125 11/15/22 3,485,760
5,500 Wisconsin Health & Educational Facilities Authority, Sisters
of the Sorrowful Mother Health Care Ser AA (MBIA).......... 6.25 06/01/20 5,544,880
-------- -----------
64,110 61,759,015
-------- -----------
Industrial Development/Pollution Control Revenue (10.9%)
7,500 Adams County, Colorado, Public Service Co of Colorado Refg
1993 Ser A (MBIA).......................................... 5.875 04/01/14 7,587,150
4,000 St Johns County Industrial Development Authority, Florida,
Professional Golf Hall of Fame Ser 1996 (MBIA)............. 5.875 09/01/23 4,007,880
Hawaii Department of Budget and Finance,
1,000 Hawaiian Electric Co Refg Ser 1999 D (AMT) (AMBAC).......... 6.15 01/01/20 1,006,990
5,000 Hawaiian Electric Co Ser 1999 C (AMT) (AMBAC)............... 6.20 11/01/29 5,032,150
12,000 Indiana Development Finance Authority, PSI Energy Inc Ser
1993 B (AMT)(MBIA)......................................... 5.75 02/15/28 11,278,320
4,900 Monroe County, Michigan, Detroit Edison Co Ser CC (AMT)
(MBIA)..................................................... 6.55 06/01/24 5,079,340
5,400 Forsyth, Montana, Puget Sound Power & Light Co Ser 1993
(MBIA)..................................................... 5.875 04/01/20 5,359,014
Washoe County, Nevada, Sierra Pacific Power Co..............
3,000 Ser 1987 (AMBAC)............................................ 6.30 12/01/14 3,102,300
5,000 Ser 1987 (AMT) (MBIA)....................................... 6.65 06/01/17 5,254,700
6,000 New York State Energy Research & Development Authority,
Brooklyn Union Gas Co 1991 Ser A & B (AMT) (MBIA).......... 5.635 07/08/26 5,534,160
5,000 Brazos River Authority, Texas, Texas Utilities Electric Co
Ser 1993 A (AMT)(AMBAC).................................... 6.05 04/01/25 4,956,500
-------- -----------
58,800 58,198,504
-------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE> 9
MORGAN STANLEY DEAN WITTER INSURED MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS April 30, 2000 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
-----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
Mortgage Revenue - Multi-Family (1.5%)
$ 8,675 West Virginia Housing Development Fund, Ser A (AMBAC)....... 5.65% 11/01/21 $ 8,141,661
-------- -----------
Mortgage Revenue - Single Family (7.8%)
3,000 Alaska Housing Finance Corporation, Governmental 1995 Ser A
(MBIA)..................................................... 5.875 12/01/24 2,929,320
15,440 Connecticut Housing Finance Authority, 1992 Ser A-2 (AMT)
(Secondary FSA)............................................ 6.05 11/15/25 15,280,968
1,195 Maine Housing Authority, Mortgage Purchase 1990 Ser A-6
(AMT)(Secondary MBIA)...................................... 6.35 11/15/22 1,180,851
12,500 New Jersey Housing & Mortgage Finance Agency, Home Buyer
1990 Ser F-3 (AMT) (MBIA).................................. 5.95 04/01/25 12,510,500
10,000 Virginia Housing Development Authority, 1992 Ser B (AMT)
(Secondary FSA)............................................ 6.30 01/01/27 9,747,000
-------- -----------
42,135 41,648,639
-------- -----------
Public Facilities Revenue (4.4%)
10,000 California Public Works Board, Corrections Refg 1993 Ser A
(AMBAC).................................................... 5.00 12/01/19 9,168,700
5,000 Florida Department of Management Services, Pool Refg Ser
1992 (AMBAC)............................................... 5.40 09/01/14 4,924,150
10,000 Marion County Convention & Recreational Facilities
Authority, Indiana, Excise Tax Refg Ser 1993 A (AMBAC)..... 5.50 06/01/21 9,497,200
-------- -----------
25,000 23,590,050
-------- -----------
Student Loan Revenue (3.4%)
18,000 Pennsylvania Higher Education Assistance Agency, 1988 Ser D
(AMT) (AMBAC).............................................. 6.05 01/01/19 18,034,560
-------- -----------
Transportation Facilities Revenue (6.7%)
5,000 Tucson, Arizona, Street & Highway Jr Lien Refg Ser 1993
(MBIA)..................................................... 5.50 07/01/12 5,037,600
5,000 Chicago, Illinois, Chicago - O'Hare Int'l Airport Second
Lien Refg 1993 Ser A (AMT) (MBIA).......................... 5.60 01/01/18 4,802,350
3,000 Kentucky Turnpike Authority, Econ Dev Road Revitalization
Refg Ser 1993 (AMBAC)...................................... 5.50 07/01/11 3,018,510
2,500 Minneapolis - St Paul Metropolitan Airports Commission,
Minnesota, Ser 1999 A (FGIC)............................... 5.125 01/01/31 2,198,150
1,250 Clark County, Nevada, Las Vegas - McCarran Int'l Airport,
Sub Lien Ser 1999 A (MBIA)................................. 6.00 07/01/29 1,254,925
9,000 Pennsylvania Turnpike Commission, Refg Ser O 1992 (FGIC).... 5.50 12/01/17 8,781,660
5,000 South Carolina Transportation Infrastructure Bank, Ser 1999
A (AMBAC).................................................. 5.50 10/01/16 4,914,900
4,000 Salt Lake City, Utah, Airport Refg Ser 1993 B (FGIC)........ 5.875 12/01/18 3,957,400
2,000 Richmond Metropolitan Authority, Virginia, Expressway 1992
Ser B (FGIC)............................................... 6.25 07/15/22 2,031,520
-------- -----------
36,750 35,997,015
-------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE> 10
MORGAN STANLEY DEAN WITTER INSURED MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS April 30, 2000 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
-----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
Water & Sewer Revenue (13.2%)
$ 2,000 Honolulu City and County, Hawaii, Wastewater Sr Ser 1998
(FGIC)..................................................... 4.75% 07/01/28 $ 1,632,900
15,000 Central Lake County Joint Action Water Agency, Illinois,
Refg Ser 1993 (FGIC)....................................... 5.375 05/01/20 13,965,600
10,000 Louisville & Jefferson County Metropolitan Sewer District,
Kentucky, Ser 1993 (MBIA).................................. 5.30 05/15/19 9,355,600
2,470 Detroit, Michigan, Sewage Refg Ser 1993 A (FGIC)............ 5.70 07/01/13 2,492,872
5,000 Grand Rapids, Michigan, Sewer Impr & Refg Ser 1998 A
(FGIC)..................................................... 4.75 01/01/28 4,108,550
5,000 Cleveland, Ohio, Waterworks Impr & Refg 1998 Ser I (FSA).... 5.00 01/01/23 4,367,550
15,000 Houston, Texas, Water & Sewer 1992 Ser C (MBIA)............. 5.75 12/01/15 15,083,100
Seattle, Washington,
10,000 Sewer Refg Ser Y (FGIC)..................................... 5.70 01/01/15 9,969,600
5,000 Sewer Refg Ser X (FGIC)..................................... 5.50 01/01/16 4,896,800
5,000 West Virginia Water Development Authority, Loan Program II
Refg Ser A-11 (FSA)........................................ 5.50 11/01/23 4,741,300
-------- ------------
74,470 70,613,872
-------- ------------
Other Revenue (0.5%)
3,000 Florida Department of Environmental Protection, Preservation
-------- 2000 Ser 1999 A (FGIC)..................................... 5.25 07/01/13 2,943,870
------------
Refunded (8.2%)
13,700 Louisiana Public Facilities Authority, Our Lady of the Lake
Regional Medical Center Ser 1993 D & E (FSA)............... 5.90 05/28/04+ 14,240,191
6,065 Maine Health & Higher Educational Facilities Authority, Ser
1993 A (FSA) (ETM)......................................... 5.50 07/01/23 5,709,106
5,000 Allegheny County Hospital Development Authority,
Pennsylvania, Pittsburgh Mercy Health Ser 1996 (AMBAC)
(ETM)...................................................... 5.625 08/15/18 4,934,900
10,000 Rhode Island Depositors Economic Protection Corporation,
Refg 1992 Ser B (MBIA) (ETM)............................... 6.00 08/01/17 10,138,100
4,360 Piedmont Municipal Power Agency, South Carolina, Refg Ser
1993 (MBIA) (ETM).......................................... 5.375 01/01/25 4,120,810
5,000 Shelby County Health, Educational & Housing Facility Board,
Tennessee, LeBonheur Children's Medical Center Inc Ser D
(MBIA) (ETM)............................................... 5.50 08/15/19 4,925,400
-------- ------------
44,125 44,068,507
-------- ------------
541,665 TOTAL TAX-EXEMPT MUNICIPAL BONDS (Identified Cost $532,801,163)................. 525,598,571
-------- ------------
SHORT-TERM TAX-EXEMPT MUNICIPAL OBLIGATION (0.2%)
1,000 Harris County Health Facilities Development Corporation,
-------- Texas, St Luke's Episcopal Hospital Ser 1997 A (Demand
05/01/00) (Identified Cost $1,000,000)..................... 6.00* 02/15/27 1,000,000
------------
$542,665 TOTAL INVESTMENTS (Identified Cost $533,801,163)(a)................... 98.2% 526,598,571
========
OTHER ASSETS IN EXCESS OF LIABILITIES.................................. 1.8 9,705,736
------ ------------
NET ASSETS............................................................. 100.0% $536,304,307
====== ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE> 11
MORGAN STANLEY DEAN WITTER INSURED MUNICIPAL INCOME TRUST
PORTFOLIO OF INVESTMENTS April 30, 2000 (unaudited) continued
---------------------
<TABLE>
<C> <S>
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) The aggregate cost for federal income tax purposes
approximates identified cost. The aggregate gross unrealized
appreciation is $2,976,408 and the aggregate gross
unrealized depreciation is $10,179,000, resulting in net
unrealized depreciation of $7,202,592.
Bond Insurance:
---------------
AMBAC AMBAC Assurance Corporation.
FGIC Financial Guaranty Insurance Company.
FSA Financial Security Assurance Inc.
MBIA Municipal Bond Investors Assurance Corporation.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE> 12
MORGAN STANLEY DEAN WITTER INSURED MUNICIPAL INCOME TRUST
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000 (unaudited)
ASSETS:
Investments in securities, at value
(identified cost $533,801,163).......... $526,598,571
Cash..................................... 175,686
Interest receivable...................... 10,222,644
Prepaid expenses......................... 145,076
------------
TOTAL ASSETS......................... 537,141,977
------------
LIABILITIES:
Payable for:
Dividends to preferred
shareholders........................ 324,259
Shares of beneficial interest
repurchased......................... 254,945
Investment management fee............ 156,335
Accrued expenses......................... 102,131
------------
TOTAL LIABILITIES.................... 837,670
------------
NET ASSETS........................... $536,304,307
============
COMPOSITION OF NET ASSETS:
Preferred shares of beneficial interest
(1,000,000 shares authorized of
non-participating $.01 par value, 3,100
shares outstanding)..................... $155,000,000
------------
Common shares of beneficial interest
(unlimited shares authorized of $.01 par
value, 27,513,113 shares outstanding)... 396,238,379
Net unrealized depreciation.............. (7,202,592)
Accumulated undistributed net investment
income.................................. 2,281,695
Accumulated net realized loss............ (10,013,175)
------------
NET ASSETS APPLICABLE TO COMMON
SHAREHOLDERS......................... 381,304,307
------------
TOTAL NET ASSETS..................... $536,304,307
============
NET ASSET VALUE PER COMMON SHARE
($381,304,307 divided by 27,513,113
common shares outstanding).............. $13.86
============
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF OPERATIONS
For the six months ended April 30, 2000 (unaudited)
NET INVESTMENT INCOME:
INTEREST INCOME........................... $15,414,388
-----------
EXPENSES
Investment management fee................. 938,839
Auction commission fees................... 252,485
Professional fees......................... 58,849
Transfer agent fees and expenses.......... 51,713
Shareholder reports and notices........... 26,736
Auction agent fees........................ 20,522
Registration fees......................... 16,952
Custodian fees............................ 9,598
Trustees' fees and expenses............... 8,754
Other..................................... 23,323
-----------
TOTAL EXPENSES........................ 1,407,771
Less: expense offset...................... (9,547)
-----------
NET EXPENSES.......................... 1,398,224
-----------
NET INVESTMENT INCOME................. 14,016,164
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized loss......................... (96,441)
Net change in unrealized depreciation..... 5,146,644
-----------
NET GAIN.............................. 5,050,203
-----------
NET INCREASE.............................. $19,066,367
===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
12
<PAGE> 13
MORGAN STANLEY DEAN WITTER INSURED MUNICIPAL INCOME TRUST
FINANCIAL STATEMENTS, continued
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
APRIL 30, 2000 OCTOBER 31, 1999
--------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income................................ $14,016,164 $28,472,222
Net realized gain (loss)............................. (96,441) 1,342,564
Net change in unrealized appreciation/depreciation... 5,146,644 (51,093,174)
------------ ------------
NET INCREASE (DECREASE).......................... 19,066,367 (21,278,388)
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Preferred............................................ (2,919,237) (5,349,191)
Common............................................... (12,111,120) (23,908,726)
------------ ------------
TOTAL DIVIDENDS.................................. (15,030,357) (29,257,917)
------------ ------------
Decrease from transactions in common shares of
beneficial interest................................. (7,008,757) (4,993,279)
------------ ------------
NET DECREASE..................................... (2,972,747) (55,529,584)
NET ASSETS:
Beginning of period.................................. 539,277,054 594,806,638
------------ ------------
END OF PERIOD
(Including undistributed net investment income of
$2,281,695 and $3,295,888, respectively)......... $536,304,307 $539,277,054
============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE> 14
MORGAN STANLEY DEAN WITTER INSURED MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS April 30, 2000 (unaudited)
1. ORGANIZATION AND ACCOUNTING POLICIES
Morgan Stanley Dean Witter Insured Municipal Income Trust (the "Trust") is
registered under the Investment Company Act of 1940, as amended, as a
diversified, closed-end management investment company. The Trust's investment
objective is to provide current income which is exempt from federal income tax.
The Trust was organized as a Massachusetts business trust on March 12, 1992 and
commenced operations on February 26, 1993.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures. Actual results could differ from
those estimates.
The following is a summary of significant accounting policies:
A. VALUATION OF INVESTMENTS -- Portfolio securities are valued by an outside
independent pricing service approved by the Trustees. The pricing service has
informed the Trust that in valuing the portfolio securities, it uses both a
computerized 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 bid side of the market each day. 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. 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.
B. ACCOUNTING FOR INVESTMENTS -- Security transactions are accounted for on the
trade date (date the order to buy or sell is executed). Realized gains and
losses on security transactions are determined by the identified cost method.
The Trust amortizes premiums and accretes discounts over the life of the
respective securities. Interest income is accrued daily.
C. FEDERAL INCOME TAX STATUS -- It is the Trust's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable and nontaxable income to its
shareholders. Accordingly, no federal income tax provision is required.
D. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- The Trust records dividends
and distributions to its shareholders on the ex-dividend date. The amount of
dividends and distributions from net
14
<PAGE> 15
MORGAN STANLEY DEAN WITTER INSURED MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS April 30, 2000 (unaudited) continued
investment income and net realized capital gains are determined in accordance
with federal income tax regulations which may differ from generally accepted
accounting principles. These "book/tax" differences are either considered
temporary or permanent in nature. To the extent these differences are permanent
in nature, such amounts are reclassified within the capital accounts based on
their federal tax-basis treatment; temporary differences do not require
reclassification. Dividends and distributions which exceed net investment income
and net realized capital gains for financial reporting purposes but not for tax
purposes are reported as dividends in excess of net investment income or
distributions in excess of net realized capital gains. To the extent they exceed
net investment income and net realized capital gains for tax purposes, they are
reported as distributions of paid-in-capital.
2. INVESTMENT MANAGEMENT AGREEMENT
Pursuant to an Investment Management Agreement with Morgan Stanley Dean Witter
Advisors Inc. (the "Investment Manager"), the Trust pays a management fee,
calculated weekly and payable monthly, by applying the annual rate of 0.35% to
the Trust's weekly net assets.
3. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES
The cost of purchases and proceeds from sales of portfolio securities, excluding
short-term investments, for the six months ended April 30, 2000 aggregated
$6,484,935 and $8,464,720, respectively.
Morgan Stanley Dean Witter Trust FSB, an affiliate of the Investment Manager, is
the Trust's transfer agent. At April 30, 2000, the Trust had transfer agent fees
and expenses payable of approximately $3,300.
The Trust has an unfunded noncontributory defined benefit pension plan covering
all independent Trustees of the Trust who will have served as independent
Trustees for at least five years at the time of retirement. Benefits under this
plan are based on years of service and compensation during the last five years
of service. Aggregate pension costs for the six months ended April 30, 2000
included in Trustees' fees and expenses in the Statement of Operations amounted
to $2,517. At April 30, 2000, the Trust had an accrued pension liability of
$38,714 which is included in accrued expenses in the Statement of Assets and
Liabilities.
15
<PAGE> 16
MORGAN STANLEY DEAN WITTER INSURED MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS April 30, 2000 (unaudited) continued
4. PREFERRED SHARES OF BENEFICIAL INTEREST
The Trust is authorized to issue up to 1,000,000 non-participating preferred
shares of beneficial interest having a par value of $.01 per share, in one or
more series, with rights as determined by the Trustees, without approval of the
common shareholders. The Trust has issued Series 1 through 5 Auction Rate
Preferred Shares ("Preferred Shares") which have a liquidation value of $50,000
per share plus the redemption premium, if any, plus accumulated but unpaid
dividends, whether or not declared, thereon to the date of distribution. The
Trust may redeem such shares, in whole or in part, at the original purchase
price of $50,000 per share plus accumulated but unpaid dividends, whether or not
declared, thereon to the date of redemption.
Dividends, which are cumulative, are reset through auction procedures.
<TABLE>
<CAPTION>
AMOUNT IN RESET RANGE OF
SERIES SHARES* THOUSANDS* RATE* DATE DIVIDEND RATES**
------ ------- ---------- ----- -------- ----------------
<S> <C> <C> <C> <C> <C>
1 400 $20,000 4.70% 05/01/00 3.00% - 5.30%
2 900 45,000 3.85 09/05/00 3.85
3 1,000 50,000 3.60 07/10/00 3.60
4 400 20,000 4.70 05/01/00 3.30 - 5.30
5 400 20,000 4.49 05/01/00 3.35 - 5.30
</TABLE>
---------------
* As of April 30, 2000.
** For the six months ended April 30, 2000.
Subsequent to April 30, 2000 and up through June 2, 2000, the Trust paid
dividends to each of the Series 1 through 5 at rates ranging from 3.60% to 5.10%
in the aggregate amount of $850,568.
The Trust is subject to certain restrictions relating to the preferred shares.
Failure to comply with these restrictions could preclude the Trust from
declaring any distributions to common shareholders or purchasing common shares
and/or could trigger the mandatory redemption of preferred shares at liquidation
value.
The preferred shares, which are entitled to one vote per share, generally vote
with the common shares but vote separately as a class to elect two Trustees and
on any matters affecting the rights of the preferred shares.
16
<PAGE> 17
MORGAN STANLEY DEAN WITTER INSURED MUNICIPAL INCOME TRUST
NOTES TO FINANCIAL STATEMENTS April 30, 2000 (unaudited) continued
5. COMMON SHARES OF BENEFICIAL INTEREST
Transactions in common shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
CAPITAL
PAID IN
EXCESS OF
SHARES PAR VALUE PAR VALUE
---------- --------- ------------
<S> <C> <C> <C>
Balance, October 31, 1998................................... 28,433,013 $284,330 $407,956,085
Treasury shares purchased and retired (weighted average
discount 5.33%)*........................................... (368,900) (3,689) (4,989,590)
---------- -------- ------------
Balance, October 31, 1999................................... 28,064,113 280,641 402,966,495
Treasury shares purchased and retired (weighted average
discount 6.83%)*........................................... (551,000) (5,510) (7,003,247)
---------- -------- ------------
Balance, April 30, 2000..................................... 27,513,113 $275,131 $395,963,248
========== ======== ============
</TABLE>
---------------------
* The Trustees have voted to retire the shares purchased.
6. FEDERAL INCOME TAX STATUS
At October 31, 1999, the Trust had a net capital loss carryover of approximately
$9,917,000, which may be used to offset future capital gains to the extent
provided by regulations, which is available through October 31 of the following
years:
<TABLE>
<CAPTION>
AMOUNT IN THOUSANDS
---------------------------------------------------------------------------------
2002 2003 2004
--------------------- -------- --------
<S> <C> <C>
$4,884 $4,412 $621
====== ====== ====
</TABLE>
7. DIVIDENDS TO COMMON SHAREHOLDERS
On March 28, 2000, the Trust declared the following dividends from net
investment income:
<TABLE>
<CAPTION>
AMOUNT RECORD PAYABLE
PER SHARE DATE DATE
--------- ------------ -------------
<S> <C> <C>
$0.0725 May 5, 2000 May 19, 2000
$0.0725 June 9, 2000 June 23, 2000
</TABLE>
17
<PAGE> 18
MORGAN STANLEY DEAN WITTER INSURED MUNICIPAL INCOME TRUST
FINANCIAL HIGHLIGHTS
Selected ratios and per share data for a common share of beneficial interest
outstanding throughout each period:
<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR ENDED OCTOBER 31*
MONTHS ENDED ------------------------------------------------------------------
APRIL 30, 2000* 1999 1998 1997 1996 1995
-------------------------------------------------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER SHARE DATA:
Net asset value, beginning of period..... $ 13.69 $15.47 $ 14.69 $13.86 $ 13.69 $11.41
------- ------ ------- ------ ------- ------
Income (loss) from investment operations:
Net investment income................... 0.51 1.01 1.00 1.00 0.97 0.96
Net realized and unrealized gain
(loss)................................ 0.18 (1.77) 0.71 0.70 (0.01) 2.22
------- ------ ------- ------ ------- ------
Total income (loss) from investment
operations.............................. 0.69 (0.76) 1.71 1.70 0.96 3.18
------- ------ ------- ------ ------- ------
Less dividends from:
Net investment income................... (0.43) (0.84) (0.78) (0.78) (0.75) (0.80)
Common share equivalent of dividends
paid to preferred shareholders........ (0.11) (0.19) (0.20) (0.19) (0.17) (0.16)
------- ------ ------- ------ ------- ------
Total dividends.......................... (0.54) (1.03) (0.98) (0.97) (0.92) (0.96)
------- ------ ------- ------ ------- ------
Anti-dilutive effect of acquiring
treasury shares......................... 0.02 0.01 0.05 0.10 0.13 0.06
------- ------ ------- ------ ------- ------
Net asset value, end of period........... $ 13.86 $13.69 $ 15.47 $14.69 $ 13.86 $13.69
======= ====== ======= ====== ======= ======
Market value, end of period.............. $13.125 $13.25 $14.813 $13.25 $11.625 $11.50
======= ====== ======= ====== ======= ======
TOTAL RETURN+............................ 2.48%(1) (5.17)% 18.27% 21.21% 7.81% 19.11%
RATIOS TO AVERAGE NET ASSETS OF COMMON
SHAREHOLDERS:
Total expenses........................... 0.74%(2)(3) 0.70% 0.69% 0.68%(3) 0.68%(3) 0.71%(3)
Net investment income before preferred
stock dividends......................... 7.35%(2) 6.71% 6.60% 7.04% 7.06% 7.51%
Preferred stock dividends................ 1.53%(2) 1.26% 1.30% 1.31% 1.25% 1.38%
Net investment income available to common
shareholders............................ 5.82%(2) 5.45% 5.30% 5.73% 5.81% 6.13%
SUPPLEMENTAL DATA:
Net assets, end of period, in
thousands............................... $536,304 $539,277 $594,807 $589,728 $591,016 $612,839
Asset coverage on preferred shares at end
of period............................... 345% 347% 383% 380% 381% 395%
Portfolio turnover rate.................. 1%(1) 5% 7% 2% 1% 1%
</TABLE>
---------------------
* The per share amounts were computed using an average number of shares
outstanding during the period.
+ Total return is based upon the current market value on the last day of each
period reported. Dividends and distributions are assumed to be reinvested at
the prices obtained under the Trust's dividend reinvestment plan. Total
return does not reflect brokerage commissions.
(1) Not annualized.
(2) Annualized.
(3) Does not reflect the effect of expense offset of 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE> 19
MORGAN STANLEY DEAN WITTER INSURED MUNICIPAL INCOME TRUST
REVISED INVESTMENT POLICY (unaudited)
On January 26, 2000, the Trustees of Morgan Stanley Dean Witter Insured
Municipal Income Trust (the " Trust") approved an investment policy whereby the
Trust would be permitted to invest up to 10% of its assets in inverse floating
rate municipal obligations. The inverse floating rate municipal obligations in
which the Trust will invest are typically created through a division of a fixed
rate municipal obligation into two separate instruments, a short-term obligation
and a long-term obligation. The interest rate on the short-term obligation is
set at periodic auctions. The interest rate on the long-term obligation is the
rate the issuer would have paid on the fixed income obligation: (i) plus the
difference between such fixed rate and the rate on the short-term obligation, if
the short-term rate is lower than the fixed rate; or (ii) minus such difference
if the interest rate on the short-term obligation is higher than the fixed rate.
The interest rates on these obligations generally move in the reverse direction
of market interest rates. If market interest rates fall, the interest rate on
the obligation will increase and if market interest rates increase, the interest
rate on the obligation will fall. Inverse floating rate municipal obligations
offer the potential for higher income than is available from fixed rate
obligations of comparable maturity and credit rating. They also carry greater
risks. In particular, the prices of inverse floating rate municipal obligations
are more volatile, i.e., they increase and decrease in response to changes in
interest rates to a greater extent than comparable fixed rate obligations.
19
<PAGE> 20
TRUSTEES
----------------------------------
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
Wayne E. Hedien
Dr. Manuel H. Johnson
Michael E. Nugent
Philip J. Purcell
John L. Schroeder
OFFICERS
----------------------------------
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Mitchell M. Merin
President
Barry Fink
Vice President, Secretary and General Counsel
James F. Willison
Vice President
Thomas F. Caloia
Treasurer
TRANSFER AGENT
----------------------------------
Morgan Stanley Dean Witter Trust FSB
Harborside Financial Center -- Plaza Two
Jersey City, New Jersey 07311
INDEPENDENT ACCOUNTANTS
----------------------------------
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
INVESTMENT MANAGER
----------------------------------
Morgan Stanley Dean Witter Advisors Inc.
Two World Trade Center
New York, New York 10048
The financial statements included herein have been taken from the records of the
Fund without examination by the independent accountants and accordingly they
do not express an opinion thereon.
MORGAN STANLEY
DEAN WITTER
INSURED MUNICIPAL INCOME TRUST
Semiannual Report
April 30, 2000
