<SEC-DOCUMENT>0000950123-08-011848.txt : 20110815
<SEC-HEADER>0000950123-08-011848.hdr.sgml : 20110815

<ACCEPTANCE-DATETIME>20081001150708

<PRIVATE-TO-PUBLIC>

ACCESSION NUMBER:		0000950123-08-011848

CONFORMED SUBMISSION TYPE:	DEF 14A

PUBLIC DOCUMENT COUNT:		2

CONFORMED PERIOD OF REPORT:	20081114

FILED AS OF DATE:		20081001

DATE AS OF CHANGE:		20081001

EFFECTIVENESS DATE:		20081001


FILER:


	COMPANY DATA:	

		COMPANY CONFORMED NAME:			MORGAN STANLEY INSURED MUNICIPAL BOND TRUST

		CENTRAL INDEX KEY:			0000861185

		IRS NUMBER:				000000000

		STATE OF INCORPORATION:			MA

		FISCAL YEAR END:			1031



	FILING VALUES:

		FORM TYPE:		DEF 14A

		SEC ACT:		1934 Act

		SEC FILE NUMBER:	811-06053

		FILM NUMBER:		081099787



	BUSINESS ADDRESS:	

		STREET 1:		1555 PEACHTREE STREET, N.E.

		STREET 2:		SUITE 1800

		CITY:			ATLANTA

		STATE:			2Q

		ZIP:			30309

		BUSINESS PHONE:		404-439-3217



	MAIL ADDRESS:	

		STREET 1:		1555 PEACHTREE STREET, N.E.

		STREET 2:		SUITE 1800

		CITY:			ATLANTA

		STATE:			2Q

		ZIP:			30309



	FORMER COMPANY:	

		FORMER CONFORMED NAME:	MORGAN STANLEY INSURED MUNICIPAL BOND TRUST

		DATE OF NAME CHANGE:	20011220



	FORMER COMPANY:	

		FORMER CONFORMED NAME:	MORGAN STANLEY DEAN WITTER INSURED MUNICIPAL BOND TRUST

		DATE OF NAME CHANGE:	19981221



	FORMER COMPANY:	

		FORMER CONFORMED NAME:	INTERCAPITAL INSURED MUNICIPAL BOND TRUST

		DATE OF NAME CHANGE:	19920703




FILER:


	COMPANY DATA:	

		COMPANY CONFORMED NAME:			MORGAN STANLEY INSURED MUNICIPAL TRUST

		CENTRAL INDEX KEY:			0000880161

		IRS NUMBER:				136993836

		STATE OF INCORPORATION:			MA

		FISCAL YEAR END:			1031



	FILING VALUES:

		FORM TYPE:		DEF 14A

		SEC ACT:		1934 Act

		SEC FILE NUMBER:	811-06434

		FILM NUMBER:		081099784



	BUSINESS ADDRESS:	

		STREET 1:		1555 PEACHTREE STREET, N.E.

		STREET 2:		SUITE 1800

		CITY:			ATLANTA

		STATE:			2Q

		ZIP:			30309

		BUSINESS PHONE:		404-439-3217



	MAIL ADDRESS:	

		STREET 1:		1555 PEACHTREE STREET, N.E.

		STREET 2:		SUITE 1800

		CITY:			ATLANTA

		STATE:			2Q

		ZIP:			30309



	FORMER COMPANY:	

		FORMER CONFORMED NAME:	MORGAN STANLEY INSURED MUNICIPAL TRUST

		DATE OF NAME CHANGE:	20011220



	FORMER COMPANY:	

		FORMER CONFORMED NAME:	MORGAN STANLEY DEAN WITTER INSURED MUNICIPAL TRUST

		DATE OF NAME CHANGE:	19981221



	FORMER COMPANY:	

		FORMER CONFORMED NAME:	INTERCAPITAL INSURED MUNICIPAL TRUST

		DATE OF NAME CHANGE:	19920929




FILER:


	COMPANY DATA:	

		COMPANY CONFORMED NAME:			MORGAN STANLEY  INSURED MUNICIPAL INCOME TRUST

		CENTRAL INDEX KEY:			0000885601

		IRS NUMBER:				133647663

		STATE OF INCORPORATION:			MA

		FISCAL YEAR END:			1031



	FILING VALUES:

		FORM TYPE:		DEF 14A

		SEC ACT:		1934 Act

		SEC FILE NUMBER:	811-06590

		FILM NUMBER:		081099786



	BUSINESS ADDRESS:	

		STREET 1:		C/O MORGAN STANLEY TRUST

		STREET 2:		HARBORSIDE FINANCIAL CENTER, PLAZA TWO

		CITY:			JERSEY CITY

		STATE:			NJ

		ZIP:			07311

		BUSINESS PHONE:		404-439-3217



	MAIL ADDRESS:	

		STREET 1:		1555 PEACHTREE STREET, N.E.

		STREET 2:		SUITE 1800

		CITY:			ATLANTA

		STATE:			2Q

		ZIP:			30309



	FORMER COMPANY:	

		FORMER CONFORMED NAME:	MORGAN STANLEY INSURED MUNICIPAL INCOME TRUST

		DATE OF NAME CHANGE:	20090722



	FORMER COMPANY:	

		FORMER CONFORMED NAME:	MORGAN STANLEY  INSURED MUNICIPAL INCOME TRUST

		DATE OF NAME CHANGE:	20011220



	FORMER COMPANY:	

		FORMER CONFORMED NAME:	MORGAN STANLEY DEAN WITTER INSURED MUNICIPAL INCOME TRUST

		DATE OF NAME CHANGE:	19981221




FILER:


	COMPANY DATA:	

		COMPANY CONFORMED NAME:			MORGAN STANLEY CALIFORNIA INSURED MUNICIPAL INCO

		CENTRAL INDEX KEY:			0000894146

		IRS NUMBER:				133701273

		STATE OF INCORPORATION:			MA

		FISCAL YEAR END:			1031



	FILING VALUES:

		FORM TYPE:		DEF 14A

		SEC ACT:		1934 Act

		SEC FILE NUMBER:	811-07344

		FILM NUMBER:		081099783



	BUSINESS ADDRESS:	

		STREET 1:		1555 PEACHTREE STREET, N.E.

		STREET 2:		SUITE 1800

		CITY:			ATLANTA

		STATE:			2Q

		ZIP:			30309

		BUSINESS PHONE:		404-439-3217



	MAIL ADDRESS:	

		STREET 1:		1555 PEACHTREE STREET, N.E.

		STREET 2:		SUITE 1800

		CITY:			ATLANTA

		STATE:			2Q

		ZIP:			30309



	FORMER COMPANY:	

		FORMER CONFORMED NAME:	MORGAN STANLEY CALIFORNIA INSURED MUNICIPAL INCOME TRUST

		DATE OF NAME CHANGE:	20090827



	FORMER COMPANY:	

		FORMER CONFORMED NAME:	MORGAN STANLEY CA INSURED MUNICIPAL INCOME TRUST

		DATE OF NAME CHANGE:	20090827



	FORMER COMPANY:	

		FORMER CONFORMED NAME:	MORGAN STANLEY CALIFORNIA INSURED MUNICIPAL INCO

		DATE OF NAME CHANGE:	20011220




FILER:


	COMPANY DATA:	

		COMPANY CONFORMED NAME:			MORGAN STANLEY INSURED CALIFORNIA MUNICIPAL SEC

		CENTRAL INDEX KEY:			0000913342

		IRS NUMBER:				000000000

		STATE OF INCORPORATION:			MA

		FISCAL YEAR END:			1231



	FILING VALUES:

		FORM TYPE:		DEF 14A

		SEC ACT:		1934 Act

		SEC FILE NUMBER:	811-07111

		FILM NUMBER:		081099788



	BUSINESS ADDRESS:	

		STREET 1:		1555 PEACHTREE STREET, N.E.

		STREET 2:		SUITE 1800

		CITY:			ATLANTA

		STATE:			2Q

		ZIP:			30309

		BUSINESS PHONE:		404-439-3217



	MAIL ADDRESS:	

		STREET 1:		1555 PEACHTREE STREET, N.E.

		STREET 2:		SUITE 1800

		CITY:			ATLANTA

		STATE:			2Q

		ZIP:			30309



	FORMER COMPANY:	

		FORMER CONFORMED NAME:	MORGAN STANLEY INSURED CALIFORNIA MUNICIPAL SECURITIES

		DATE OF NAME CHANGE:	20090827



	FORMER COMPANY:	

		FORMER CONFORMED NAME:	MORGAN STANLEY INSURED CALIFORNIA MUNICIPAL SEC

		DATE OF NAME CHANGE:	20080411



	FORMER COMPANY:	

		FORMER CONFORMED NAME:	MORGAN STANLEY  INSURED CALIFORNIA MUNICIPAL SEC

		DATE OF NAME CHANGE:	20011220




FILER:


	COMPANY DATA:	

		COMPANY CONFORMED NAME:			MORGAN STANLEY INSURED MUNICIPAL SECURITIES

		CENTRAL INDEX KEY:			0000913345

		IRS NUMBER:				000000000

		STATE OF INCORPORATION:			MA

		FISCAL YEAR END:			1231



	FILING VALUES:

		FORM TYPE:		DEF 14A

		SEC ACT:		1934 Act

		SEC FILE NUMBER:	811-07109

		FILM NUMBER:		081099785



	BUSINESS ADDRESS:	

		STREET 1:		1555 PEACHTREE STREET, N.E.

		STREET 2:		SUITE 1800

		CITY:			ATLANTA

		STATE:			2Q

		ZIP:			30309

		BUSINESS PHONE:		404-439-3217



	MAIL ADDRESS:	

		STREET 1:		1555 PEACHTREE STREET, N.E.

		STREET 2:		SUITE 1800

		CITY:			ATLANTA

		STATE:			2Q

		ZIP:			30309



	FORMER COMPANY:	

		FORMER CONFORMED NAME:	MORGAN STANLEY INSURED MUNICIPAL SECURITIES

		DATE OF NAME CHANGE:	20011220



	FORMER COMPANY:	

		FORMER CONFORMED NAME:	MORGAN STANLEY  INSURED MUNICIPAL SECURITIES

		DATE OF NAME CHANGE:	20011220



	FORMER COMPANY:	

		FORMER CONFORMED NAME:	MORGAN STANLEY DEAN WITTER INSURED MUNICIPAL SECURITIES

		DATE OF NAME CHANGE:	19981221



</SEC-HEADER>

<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>y00134ddef14a.htm
<DESCRIPTION>DEFINITIVE NOTICE OF SPECIAL MEETING
<TEXT>
<HTML>
<HEAD>
<TITLE>DEF 14A</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
</DIV><!-- END PAGE WIDTH -->
<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>UNITED STATES<BR>
    SECURITIES AND EXCHANGE COMMISSION<BR>
    Washington,&#160;D.C. 20549<BR>
    </B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>SCHEDULE&#160;14A<BR>
    <FONT style="white-space: nowrap">(Rule&#160;14a-101)</FONT><BR>
    </B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>INFORMATION REQUIRED IN PROXY STATEMENT<BR>
    SCHEDULE&#160;14A INFORMATION<BR>
    </B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>PROXY STATEMENT PURSUANT TO SECTION&#160;14(a) OF THE
    SECURITIES<BR>
    EXCHANGE ACT OF 1934 (AMENDMENT
    NO.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;)</B>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Filed by the Registrant [X]
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Filed by a Party other than the Registrant [&#160;&#160;&#160;]
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Check the appropriate box:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
     [&#160;&#160;&#160;]&#160;&#160;Preliminary Proxy Statement
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
     [&#160;&#160;&#160;]&#160;&#160;Confidential, for Use of the
    Commission Only (as permitted by Rule&#160;14a-6(e)(2))
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
     [X]&#160;&#160;Definitive Proxy Statement
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
     [&#160;&#160;&#160;]&#160;&#160;Definitive Additional Materials
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    [&#160;&#160;&#160;]&#160;&#160;Soliciting Material Pursuant to
    <FONT style="white-space: nowrap">Section&#160;240.14a-11(c)</FONT>
    or Section&#160;240.14a-2.
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>MORGAN STANLEY CALIFORNIA INSURED MUNICIPAL INCOME TRUST<BR>
    MORGAN STANLEY INSURED CALIFORNIA MUNICIPAL SECURITIES<BR>
    MORGAN STANLEY INSURED MUNICIPAL BOND TRUST<BR>
    MORGAN STANLEY INSURED MUNICIPAL INCOME TRUST<BR>
    MORGAN STANLEY INSURED MUNICIPAL SECURITIES<BR>
    MORGAN STANLEY INSURED MUNICIPAL TRUST</B>
</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=456 length=0 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (Name of Registrant as Specified In Its Charter)
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=456 length=0 -->



<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (Name of Person(s) Filing Proxy Statement, if other than
    Registrant)
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Payment of Filing Fee (Check the appropriate box):
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    [X]&#160;&#160;No fee required.
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    [&#160;&#160;&#160;]&#160;&#160;</TD>
    <TD align="left">
    Fee computed on table below per Exchange Act
    <FONT style="white-space: nowrap">Rules&#160;14a-6(i)(4)</FONT>
    and 0-12.
</TD>
</TR>

</TABLE>



<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;&#160;Title of each class of securities to which
    transaction applies:
</DIV>

<DIV style="font-size: 7pt; margin-left: 3%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;&#160;Aggregate number of securities to which
    transaction applies:
</DIV>

<DIV style="font-size: 7pt; margin-left: 3%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="7%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (3)&#160;&#160;
</TD>
    <TD align="left">
    Per unit price or other underlying value of transaction computed
    pursuant to Exchange Act
    <FONT style="white-space: nowrap">Rule&#160;0-11</FONT>
    (Set forth the amount on which the filing fee is calculated and
    state how it was determined):
</TD>
</TR>

</TABLE>

<DIV style="font-size: 7pt; margin-left: 3%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (4)&#160;&#160;Proposed maximum aggregate value of transaction:
</DIV>

<DIV style="font-size: 7pt; margin-left: 3%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (5)&#160;&#160;Total fee paid:
</DIV>

<DIV style="font-size: 7pt; margin-left: 3%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    [&#160;&#160;&#160;]&#160;&#160;Fee paid previously with
    preliminary materials.
</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    [&#160;&#160;&#160;]&#160;&#160;</TD>
    <TD align="left">
    Check box if any part of the fee is offset as provided by
    Exchange Act
    <FONT style="white-space: nowrap">Rule&#160;0-11(a)(2)</FONT>
    and identify the filing for which the offsetting fee was paid
    previously. Identify the previous filing by registration
    statement number, or the Form or Schedule and the date of its
    filing.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;&#160;Amount Previously Paid:
</DIV>

<DIV style="font-size: 7pt; margin-left: 3%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;&#160;Form, Schedule or Registration Statement No.:
</DIV>

<DIV style="font-size: 7pt; margin-left: 3%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;&#160;Filing Party:
</DIV>

<DIV style="font-size: 7pt; margin-left: 3%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (4)&#160;&#160;Date Filed:
</DIV>

<DIV style="font-size: 7pt; margin-left: 3%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
</DIV><!-- END PAGE WIDTH -->
<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INFORMATION
    ABOUT YOUR PROXY STATEMENT</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although we recommend that you read the complete Joint Proxy
    Statement, for your convenience, we have provided a brief
    overview of the issues to be voted on.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
    <B>Q. </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>Why am I receiving this Joint Proxy Statement?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A. </TD>
    <TD></TD>
    <TD valign="bottom">
    You are being asked to vote on a number of important matters:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="5%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (i)&#160;
</TD>
    <TD align="left">
    <U>Approval of Modification to each Trust&#146;s Current 80%
    Investment Policy</U>.&#160;&#160;Each Trust is currently
    required to invest at least 80% of its net assets in municipal
    obligations covered by insurance guaranteeing the timely payment
    of principal and interest thereon issued by insurers rated
    &#147;Aaa&#148; by Moody&#146;s Investors Service, Inc. or
    &#147;AAA&#148; by Standard&#160;&#038; Poor&#146;s at the time
    of purchase or which are covered by a master municipal insurance
    policy purchased by the Trust. Shareholders of each Trust are
    being asked to approve a modification to this policy. The
    proposed modification, as described in the enclosed proxy
    statement, is designed to provide each Trust&#146;s Investment
    Adviser with important flexibility to respond to ongoing
    developments in the insured municipal bond market.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (ii)&#160;
</TD>
    <TD align="left">
    <U>Approval of Modifications to each Trust&#146;s Investment
    Policies for the Trust&#146;s Net Assets Invested Outside its
    80% Investment Policy</U>.&#160;&#160;Each Trust&#146;s
    Shareholders are being asked to approve modifications relating
    to the Trust&#146;s investment policies for the Trust&#146;s net
    assets invested outside the Trust&#146;s 80% investment policy.
    These modifications are designed to give each Trust&#146;s
    Investment Adviser increased flexibility to invest in a broader
    range of investment grade municipal obligations, which may
    enable it to increase the yield of the Trust&#146;s shares
    without unduly increasing risks and will facilitate the ability
    of the Investment Adviser to respond promptly to changing market
    conditions.
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="5%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (iii)&#160;
</TD>
    <TD align="left">
    <U>Elimination of Certain Fundamental Investment Policies and
    Restrictions</U>.&#160;&#160;Each Trust&#146;s Shareholders are
    being asked to approve the <U>elimination</U> of certain
    fundamental investment policies and restrictions that are no
    longer required. These changes are designed to give the Trusts
    greater flexibility to respond to regulatory and other
    developments.
</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="5%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (iv)&#160;
</TD>
    <TD align="left">
    <U>Modification of Certain Fundamental Investment Policies and
    Restrictions</U>.&#160;&#160;Each Trust&#146;s Shareholders are
    being asked to approve the <U>modification</U> of certain
    fundamental investment policies and restrictions which, based on
    current applicable law, are unduly restrictive for the Trusts.
    These changes are designed to enhance the Investment
    Adviser&#146;s ability to manage the Trusts&#146; portfolios in
    a changing regulatory or investment environment.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    Your Trust&#146;s Board of Trustees unanimously recommends that
    you vote <B>FOR</B> each proposal.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <B>Your vote is very important. We encourage you as a
    Shareholder to participate in your Trust&#146;s governance by
    returning your vote as soon as possible. If enough Shareholders
    do not cast their votes, your Trust may not be able to hold its
    meeting or obtain the requisite vote on each issue, and will be
    required to incur additional solicitation costs in order to
    obtain sufficient Shareholder participation.</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q. </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>Why are Shareholders of each Trust being asked to approve the
    modifications and eliminations to the Trust&#146;s fundamental
    investment policies?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A. </TD>
    <TD></TD>
    <TD valign="bottom">
    As a result of conditions facing the municipal bond insurance
    market, shareholders are being asked to approve modifications
    and eliminations of certain fundamental investment policies that
    are restricting, or </TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    may be expected in the future to restrict, each Trust&#146;s
    ability to effectively maintain its existing focus on insured
    bonds. The proposals, as described in the enclosed proxy
    statement, are designed to expand the investment universe in
    which the Trust can invest thereby providing each Trust&#146;s
    Investment Adviser with important flexibility to respond to
    ongoing developments in the insured municipal bond market.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q. </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>What happens if shareholders don&#146;t approve the
    modifications and eliminations to the fundamental investment
    policies?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A. </TD>
    <TD></TD>
    <TD valign="bottom">
    If shareholders do not approve the modifications and
    eliminations to the fundamental investment policies, then the
    Board will take such action as it deems to be in the best
    interest of each Trust. Your Trust&#146;s Board urges you to
    vote without delay in order to avoid potential disruption to the
    Trust&#146;s operations.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q. </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>Who do I call if I have questions?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A. </TD>
    <TD></TD>
    <TD valign="bottom">
    If you need any assistance, or have any questions regarding the
    proposals or how to vote your shares, please call Computershare
    Fund&#160;Services, Inc., your Trust proxy solicitor, at
    1-866-865-5978. Please have your proxy material available when
    you call.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q. </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>How do I vote my Shares?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A. </TD>
    <TD></TD>
    <TD valign="bottom">
    You can vote your shares by completing and signing the enclosed
    proxy card, and mailing it in the enclosed postage-paid
    envelope. Alternatively, you may vote by telephone by calling
    the toll-free number on the proxy card or by computer by going
    to the Internet address provided on the proxy card and following
    the instructions, using your proxy card as a guide.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q. </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>Will anyone contact me?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A. </TD>
    <TD></TD>
    <TD valign="bottom">
    You may receive a call from Computershare Fund&#160;Services,
    Inc., the proxy solicitor hired by your Trust, to verify that
    you received your proxy materials, to answer any questions you
    may have about the proposals and to encourage you to vote your
    proxy.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    We recognize the inconvenience of the proxy solicitation process
    and would not impose on you if we did not believe that the
    matters being proposed were important and in the best interests
    of the Trusts&#146; Shareholders. Once your vote has been
    registered with the proxy solicitor, your name will be removed
    from the solicitor&#146;s
    <FONT style="white-space: nowrap">follow-up</FONT>
    contact list.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    2
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
</DIV><!-- END PAGE WIDTH -->
<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MORGAN
    STANLEY CALIFORNIA INSURED MUNICIPAL INCOME TRUST<BR>
    MORGAN STANLEY INSURED CALIFORNIA MUNICIPAL SECURITIES<BR>
    MORGAN STANLEY INSURED MUNICIPAL BOND TRUST<BR>
    MORGAN STANLEY INSURED MUNICIPAL INCOME TRUST<BR>
    MORGAN STANLEY INSURED MUNICIPAL SECURITIES<BR>
    MORGAN STANLEY INSURED MUNICIPAL TRUST</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>NOTICE OF SPECIAL MEETINGS OF SHAREHOLDERS</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B> TO BE HELD NOVEMBER 14, 2008</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Special Meetings of Shareholders (&#147;Meeting(s)&#148;) of
    Morgan Stanley California Insured Municipal Income Trust, Morgan
    Stanley Insured California Municipal Securities, Morgan Stanley
    Insured Municipal Bond Trust, Morgan Stanley Insured Municipal
    Income Trust, Morgan Stanley Insured Municipal Securities and
    Morgan Stanley Insured Municipal Trust (individually, a
    &#147;Trust&#148; and, collectively, the &#147;Trusts&#148;),
    unincorporated business trusts organized under the laws of the
    Commonwealth of Massachusetts, will be held jointly in
    Conference Room&#160;3R, 522&#160;Fifth Avenue, New York, New
    York 10036, on November 14, 2008 at 8:30&#160;a.m., New York
    City time, for the following purposes:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;To approve or disapprove a modification to each
    Trust&#146;s investment policies to enable the Trust, under
    normal market conditions, to invest at least 80% of its net
    assets in Municipal Obligations (as defined herein) which are
    covered by insurance guaranteeing the timely payment of
    principal and interest thereon and that are rated at least
    &#147;A&#148; by a nationally recognized statistical rating
    organization (&#147;NRSRO&#148;) or are unrated but judged to be
    of similar credit quality by Morgan&#160;Stanley Investment
    Advisors Inc., the Trust&#146;s Investment Adviser, or covered
    by insurance issued by insurers rated at least &#147;A&#148; by
    a NRSRO. The foregoing ratings apply at the time of purchase.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;To approve or disapprove a modification to each
    Trust&#146;s investment policies relating to the portion of the
    Trust&#146;s net assets not invested in accordance with the
    Trust&#146;s 80% investment policy.
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.&#160;To approve or disapprove the elimination of certain
    fundamental investment policies and restrictions of each Trust.
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.&#160;To approve or disapprove the modification of certain
    fundamental investment policies and restrictions of each Trust.
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.&#160;To transact such other business as may properly come
    before the Meetings or any adjournments thereof.
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Shareholders of record of each Trust as of the close of business
    on September 12, 2008 are entitled to notice of and to vote at
    the Meeting. If you cannot be present in person, the Investment
    Adviser would greatly appreciate your filling in, signing and
    returning the enclosed proxy promptly in the envelope provided
    for that purpose. Alternatively, if you are eligible to vote
    telephonically by touchtone telephone or electronically on the
    Internet (as discussed in the enclosed Joint Proxy Statement)
    you may do so in lieu of attending the Meeting in person.
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event that holders of a majority of each Trust&#146;s
    shares (as defined herein) issued and outstanding and entitled
    to vote (a &#147;Quorum&#148;) are not present at the Meeting of
    any Trust in person or by proxy, or the vote required to approve
    or reject any Proposal is not obtained at the Meeting of any
    Trust, the persons named as proxies may propose one or more
    adjournments of the Meeting to permit further solicitation of
    proxies. Any such adjournment will require the affirmative vote
    of the holders of a majority of the applicable Trust&#146;s
    Shares present in person or by proxy at the Meeting. The persons
    named as proxies will vote in favor of such adjournment those
    proxies which have been received by the date of the Meetings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 59%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-variant: SMALL-CAPS">Mary E. Mullin
    </FONT>
</DIV>

<DIV align="left" style="margin-left: 59%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 59%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;&#160;&#160;&#160;&#160;<I>Secretary</I>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    October 1, 2008
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
     New York, New York
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>
</DIV><!-- END PAGE WIDTH -->
<DIV style="width: 85%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>
<DIV style="width: 100%; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>IMPORTANT</B>
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>You can help avoid the necessity and expense of sending
    <FONT style="white-space: nowrap">follow-up</FONT>
    letters to ensure a Quorum by promptly returning the enclosed
    Proxy. If you are unable to be present in person, please fill
    in, sign and return the enclosed Proxy in order that the
    necessary Quorum may be represented at the Meetings. The
    enclosed envelope requires no postage if mailed in the United
    States. Certain Shareholders will be able to vote telephonically
    by touchtone telephone or electronically on the Internet by
    following instructions contained on their proxy cards or on the
    enclosed Voting Information Card.</B>
</DIV>
</DIV><!-- End box 1 -->
</DIV><!-- END PAGE WIDTH -->
<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
</DIV><!-- END PAGE WIDTH -->
<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>MORGAN STANLEY CALIFORNIA INSURED MUNICIPAL INCOME TRUST</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>MORGAN STANLEY INSURED CALIFORNIA MUNICIPAL SECURITIES</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>MORGAN STANLEY INSURED MUNICIPAL BOND TRUST</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>MORGAN STANLEY INSURED MUNICIPAL INCOME TRUST</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>MORGAN STANLEY INSURED MUNICIPAL SECURITIES</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>MORGAN STANLEY INSURED MUNICIPAL TRUST</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>522&#160;Fifth Avenue, New York, New York 10036</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 27%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=437 length=120 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<!-- link1 "JOINT PROXY STATEMENT" -->
<B> JOINT PROXY
    STATEMENT</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 27%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=437 length=120 -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Special
    Meetings of Shareholders</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">November
    14, 2008</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This Joint Proxy Statement is furnished in connection with the
    solicitation of proxies by the Boards of Trustees (the
    &#147;Board(s)&#148;) of Morgan Stanley California Insured
    Municipal Income Trust (&#147;IIC&#148;), Morgan Stanley Insured
    California Municipal Securities (&#147;ICS&#148;), Morgan
    Stanley Insured Municipal Bond Trust (&#147;IMC&#148;), Morgan
    Stanley Insured Municipal Income Trust (&#147;IIM&#148;), Morgan
    Stanley Insured Municipal Securities (&#147;IMS&#148;) and
    Morgan Stanley Insured Municipal Trust (&#147;IMT&#148;)
    (individually, a &#147;Trust&#148; and, collectively, the
    &#147;Trusts&#148;), for use at the Special Meetings of
    Shareholders of the Trusts to be held jointly on November 14,
    2008 (the
    <FONT style="white-space: nowrap">&#147;Meeting(s)&#148;),</FONT>
    and at any adjournments thereof. The first mailing of this Joint
    Proxy Statement is expected to be made on or about October 1,
    2008.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the enclosed form of proxy is properly executed and returned
    in time to be voted at the Meetings, the proxies named therein
    will vote the shares (&#147;Shares&#148;) represented by the
    proxy in accordance with the instructions marked thereon.
    Unmarked proxies submitted by shareholders of a Trust
    (&#147;Shareholders&#148;) will be voted FOR each Proposal with
    respect to that Trust, set forth in the attached Notice of
    Special Meetings of Shareholders. A proxy may be revoked at any
    time prior to its exercise by any of the following: written
    notice of revocation to the Secretary of the Trusts, execution
    and delivery of a later dated proxy to the Secretary of the
    Trusts (whether by mail or, as discussed below, by touchtone
    telephone or the Internet) (if returned and received in time to
    be voted), or attendance and voting at the Meetings. Attendance
    at the Meetings will not in and of itself revoke a proxy.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Shareholders of record of each Trust as of the close of business
    on September 12, 2008, the record date for the determination of
    Shareholders entitled to notice of and to vote at the Meetings
    (the &#147;Record Date&#148;), are entitled to one vote for each
    Share held and a fractional vote for a fractional Share.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    2
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The table below sets forth the total number of Common Shares and
    Preferred Shares outstanding for each Trust as of the Record
    Date:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="61%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="15%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="15%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of Common<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of Preferred<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shares Outstanding as<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shares Outstanding as<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>of September 12, <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>of September 12, <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Name of Trust</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008 (Record Date)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008 (Record Date)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ICS
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,427,552
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    IIC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,660,578
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,168
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    IIM
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,694,674
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,177
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    IMC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,942,543
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    465
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    IMS
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,591,385
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    IMT
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,484,370
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,878
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The cost of soliciting proxies for the Meeting of each Trust,
    consisting principally of printing and mailing expenses, will be
    borne by each respective Trust. The solicitation of proxies will
    be by mail, telephone or otherwise through Trustees, officers of
    the Trusts or officers and employees of Morgan Stanley
    Investment Advisors Inc. (&#147;Morgan Stanley Investment
    Advisors&#148; or the &#147;Investment Adviser&#148;), Morgan
    Stanley Trust, Morgan Stanley Services Company Inc.
    (&#147;Morgan Stanley Services&#148; or the
    &#147;Administrator&#148;)
    <FONT style="white-space: nowrap">and/or</FONT>
    Morgan Stanley&#160;&#038; Co. Incorporated (&#147;Morgan
    Stanley&#160;&#038; Co.&#148;), without special compensation
    therefor. In addition, each Trust may employ Computershare
    Fund&#160;Services, Inc. (&#147;Computershare&#148;) to make
    telephone calls to Shareholders to remind them to vote. Each
    Trust may also employ Computershare as proxy solicitor if it
    appears that the required number of votes to achieve a Quorum
    will not be received. The transfer agent services for each Trust
    are currently provided by Computershare Trust&#160;Company, N.A.
    (the &#147;Transfer Agent&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Shareholders will be able to vote their Shares by touchtone
    telephone or by Internet by following the instructions on the
    proxy card or on the Voting Information Card accompanying this
    Joint Proxy Statement. To vote by touchtone telephone or by
    Internet, Shareholders can call the toll-free number or access
    the website listed on the proxy card or noted in the enclosed
    voting instructions. To vote by touchtone telephone or by
    Internet, Shareholders will need the number that appears on the
    proxy card in the shaded box.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In certain instances, Computershare may call Shareholders to ask
    if they would be willing to have their votes recorded by
    telephone. The telephone voting procedure is designed to
    authenticate Shareholders&#146; identities, to allow
    Shareholders to authorize the voting of their Shares in
    accordance with their instructions and to confirm that their
    instructions have been recorded properly. No recommendation will
    be made as to how a Shareholder should vote on any Proposal
    other than to refer to the recommendations of the Board. The
    Trusts have been advised by counsel that these procedures are
    consistent with the requirements of applicable law. Shareholders
    voting by telephone in this manner will be asked for identifying
    information and will be given an opportunity to authorize
    proxies to vote their Shares in accordance with their
    instructions. To ensure that Shareholders&#146; instructions
    have been recorded correctly, they will receive a confirmation
    of their instructions in the mail. A special toll-free number
    set forth in the confirmation will be available in case the
    information contained in the confirmation is incorrect. Although
    a Shareholder&#146;s vote may be taken by telephone, each
    Shareholder will receive a copy of this Joint Proxy Statement
    and may vote by mail using the enclosed proxy&#160;card or by
    touchtone telephone or the Internet as set forth above. The last
    proxy vote received in time to be voted, whether by proxy card,
    touchtone telephone or Internet, will be the vote that is
    counted and will revoke all previous votes by the Shareholder.
    In the event that Computershare is retained as proxy solicitor,
    Computershare will be paid a project management fee as well as
    telephone solicitation expenses incurred for
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    3
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
     reminder calls, outbound telephone voting, confirmation of
    telephone votes, inbound telephone contacts, obtaining
    Shareholders&#146; telephone numbers, and providing additional
    materials upon Shareholder request, at an estimated cost of
    $55,177, which will be borne pro rata by the Trusts.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This Joint Proxy Statement is being used in order to reduce the
    preparation, printing, handling and postage expenses that would
    result from the use of a separate proxy statement for each Trust
    and, because Shareholders may own Shares of more than one Trust,
    to potentially avoid burdening Shareholders with more than one
    proxy&#160;statement. Shares of a Trust are entitled to one vote
    each at the respective Trust&#146;s Meeting. To the extent
    information relating to common ownership is available to the
    Trusts, a Shareholder that owns record Shares in two or more of
    the Trusts will receive a package containing a Joint Proxy
    Statement and proxy cards for the Trusts in which such
    Shareholder is a record owner. If the information relating to
    common ownership is not available to the Trusts, a Shareholder
    that beneficially owns Shares in two or more Trusts may receive
    two or more packages each containing a Joint Proxy Statement and
    a proxy card for each Trust in which such Shareholder is a
    beneficial owner. If the proposed changes to the investment
    policies and restrictions are approved by Shareholders of one
    Trust and disapproved by Shareholders of other Trusts, the
    Proposals will be implemented for the Trust that approved the
    Proposals and will not be implemented for any Trust that did not
    approve the Proposals. Thus, it is essential that Shareholders
    complete, date, sign and return each enclosed proxy card or vote
    by telephone or Internet as indicated in each Trust&#146;s proxy
    card.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Only one copy of this Joint Proxy Statement will be delivered to
    multiple Shareholders sharing an address unless we have received
    contrary instructions from one or more Shareholders. Upon
    written or oral request, we will deliver a separate copy of this
    Joint Proxy Statement to a Shareholder at a shared address to
    which a single copy of this Joint Proxy Statement was delivered.
    Should any Shareholder wish to receive a separate
    proxy&#160;statement or should Shareholders sharing an address
    wish to receive a single proxy statement in the future, please
    contact
    <FONT style="white-space: nowrap">(888)&#160;421-4015</FONT>
    (toll-free).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Shareholders are being solicited and are entitled to vote on all
    Proposals set forth herein.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="11%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="87%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Proposal 1
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    To approve or disapprove a modification to each Trust&#146;s
    investment policies to enable the Trust, under normal market
    conditions, to invest at least 80% of its net assets in
    Municipal Obligations which are covered by insurance
    guaranteeing the timely payment of principal and interest
    thereon and that are rated at least &#147;A&#148; by a NRSRO or
    are unrated but judged to be of similar credit quality by the
    Trust&#146;s Investment Adviser, or covered by insurance issued
    by insurers rated at least &#147;A&#148; by a NRSRO. The
    foregoing ratings apply at the time of purchase.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Proposal 2
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    To approve or disapprove a modification to each Trust&#146;s
    investment policies relating to the portion of the Trust&#146;s
    net assets not invested in accordance with the Trust&#146;s 80%
    investment policy.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Proposal 3
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    To approve or disapprove the elimination of certain fundamental
    investment policies and restrictions of each Trust.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Proposal 4
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    To approve or disapprove the modification of certain fundamental
    investment policies and restrictions of each Trust.
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The Board of each Trust unanimously recommends that you cast
    your vote &#147;FOR&#148; each Proposal set forth above.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Your vote is important. Please return your Proxy Card
    promptly no matter how many Shares you own.</B>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    4
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->


<!-- link1 "PROPOSAL NO. 1: APPROVAL OR DISAPPROVAL OF MODIFICATIONS TO EACH TRUST&#146;S INVESTMENT POLICIES RESPECTING INVESTMENTS OF AT LEAST 80% OF ITS NET ASSETS IN INSURED MUNICIPAL OBLIGATIONS (&#147;CURRENT 80% INVESTMENT POLICY&#148;)" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PROPOSAL&#160;NO.&#160;1:
    APPROVAL OR DISAPPROVAL OF MODIFICATIONS<BR>
    TO EACH TRUST&#146;S INVESTMENT POLICIES RESPECTING<BR>
    INVESTMENTS OF AT LEAST 80% OF ITS NET ASSETS IN INSURED
    MUNICIPAL<BR>
    OBLIGATIONS (&#147;CURRENT 80% INVESTMENT
    POLICY&#148;)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each Trust has certain investment policies as set forth in the
    respective Trust&#146;s original Prospectus that are fundamental
    policies of the Trust. Under the Investment Company Act of 1940,
    as amended (the &#147;Investment Company Act&#148;), a
    fundamental policy may not be changed without the favorable vote
    of a majority of the outstanding voting securities of the Trust,
    as defined in the Investment Company Act. Such a majority is
    defined as the lesser of (a)&#160;67% or more of the Shares
    present at the Meeting, if the holders of more than 50% of the
    outstanding Shares of the Trust are present or represented by
    proxy, or (b)&#160;more than 50% of the outstanding Shares.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At the
    <FONT style="white-space: nowrap">September&#160;24-25,</FONT>
    2008 Board meeting, the Board of Trustees of each Trust
    unanimously approved a recommendation by the Investment Adviser
    that each Trust seek authorization from its Shareholders to
    modify its Current 80% Investment Policy, which requires the
    Trust to invest at least 80% of its net assets in Municipal
    Obligations that are covered by insurance guaranteeing the
    timely payment of principal and interest thereon issued by
    insurers rated &#147;Aaa&#148; by Moody&#146;s Investors
    Service, Inc. (&#147;Moody&#146;s&#148;) or &#147;AAA&#148; by
    Standard&#160;&#038; Poor&#146;s, a division of The
    <FONT style="white-space: nowrap">McGraw-Hill</FONT>
    Companies, Inc. (&#147;S&#038;P&#148;), at the time of purchase
    or which are covered by a master municipal insurance policy
    purchased by the Trust (&#147;Insurance Requirement&#148;). The
    proposed modification to this policy, for which we seek
    shareholder approval, would require each Trust to invest at
    least 80% of its net assets in Municipal
    Obligations<SUP style="font-size: 85%; vertical-align: text-top">1</SUP>
    (&#147;Proposed 80% Investment Policy&#148;). Each Trust&#146;s
    Proposed 80% Investment Policy would remain a fundamental policy
    of the Trust, which requires that any further changes to such
    policy be approved by Shareholders of the Trust, as required by
    the Investment Company Act.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If approved by the shareholders, the Insurance Requirement would
    no longer be part of each Trust&#146;s Proposed 80% Investment
    Policy. However, each Trust would have a non-fundamental policy,
    established by the Board, which would require each Trust to
    invest, under normal market conditions, at least 80% of its net
    assets in Municipal Obligations which are covered by insurance
    guaranteeing the timely payment of principal and interest
    thereon and that are rated at least &#147;A&#148; by a NRSRO or
    are unrated but judged to be of similar credit quality by the
    Trust&#146;s Investment Adviser, or covered by insurance issued
    by insurers rated at least &#147;A&#148;  by a NRSRO. The
    foregoing ratings apply at the time of purchase. Because this is
    a non-fundamental policy, the Investment Adviser will be able to
    modify such policy of each Trust, subject to the approval of the
    Board of Trustees, without incurring the delay and expense
    associated with seeking a Shareholder vote each time a change to
    the policy is deemed necessary and will facilitate the ability
    of the Investment Adviser to respond promptly to evolving
    markets and changes in market condition.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The current rating requirements included in each Trust&#146;s
    Current 80% Investment Policy reflects the state of the industry
    with respect to municipal bond insurers at the time of the
    inception of these Trusts. Recently, the financial markets have
    witnessed a tremendous amount of turbulence related to issues
    concerning sub-prime investments, auction rate preferred shares
    and collateralized debt obligations, among others. Deterioration
    in
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV><DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>
<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <SUP style="font-size: 85%; vertical-align: text-top">1</SUP>&#160;<FONT style="font-size: 8pt">For
    IMC,&#160;IIM, IMS and IMT, Municipal Obligations include
    municipal bonds, municipal notes and municipal commercial paper,
    as well as lease obligations, including such instruments
    purchased on a when-issued or delayed delivery basis, the
    interest on which is exempt from federal income tax. For IIC and
    ICS, Municipal Obligations include municipal bonds, municipal
    notes and municipal commercial paper, as well as lease
    obligations, including such instruments purchased on a
    when-issued or delayed delivery basis, the interest on which, in
    the opinion of bond counsel to the issuer, is exempt from
    federal and California income taxes.
    </FONT>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    5
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<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
     the credit quality of securities backed by sub-prime
    residential mortgages has disrupted many markets and companies,
    including bond insurers, which, in addition to insuring
    municipal bonds, have also provided guarantees on these
    mortgage-related securities. As a result, the financial strength
    of certain municipal bond insurers has come under greater
    scrutiny and certain bond insurers have had their businesses
    called into question, particularly with respect to the adequacy
    of their capital. Those insurers that have expanded their
    business models into areas such as mortgage insurance have been
    adversely affected, and the ratings assigned to certain
    municipal bond insurers either have been downgraded or are being
    reviewed for possible downgrades by certain of the primary
    ratings agencies. This has caused a ripple effect in the fund
    industry, where many insured municipal bond funds, including the
    Trusts, require that such funds invest in municipal securities
    that are insured as to the timely payment of principal and
    interest by an entity rated &#147;Aaa/AAA.&#148; As of
    September&#160;29, 2008, only three bond insurers maintain
    &#147;Aaa/AAA&#148; ratings. As a result, the universe of
    eligible Municipal Obligations in which the Trusts may currently
    invest has substantially narrowed. In response to these market
    events, certain of Morgan Stanley&#146;s peer funds have revised
    their investment universe with respect to the credit rating of
    municipal bond insurers.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the Investment Adviser&#146;s view, because so few insurers
    are rated &#147;Aaa/AAA,&#148; the current &#147;Aaa/AAA&#148;
    rating requirement may unduly limit its ability to diversify the
    Trusts&#146; investments among various municipal bond issuers
    and insurers. The aforementioned non-fundamental investment
    policy for each Trust to invest, under normal market conditions,
    at least 80% of its net assets in Municipal Obligations which
    are covered by insurance guaranteeing the timely payment of
    principal and interest thereon and that are rated at least
    &#147;A&#148; by a NRSRO or are unrated but judged to be of
    similar credit quality by the Trust&#146;s Investment Adviser,
    or covered by insurance issued by insurers rated at least
    &#147;A&#148; by a NRSRO is designed to provide the Investment
    Adviser with important flexibility to respond to on-going
    developments in the bond insurance market, while ensuring that
    the Trusts continue to invest at least 80% of their net assets
    in insured bonds backed by insurers with solid credit ratings.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board of Trustees of each Trust evaluated the potential
    benefits associated with the modifications discussed above and
    concluded that the Proposal is in the best interest of its
    Shareholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The Board of Trustees of each Trust unanimously recommends
    that Shareholders of each Trust approve the proposed
    modifications to the Trust&#146;s Current 80% Investment
    Policy.</B>
</DIV>


<!-- link1 "PROPOSAL NO. 2: APPROVAL OR DISAPPROVAL OF A MODIFICATION TO EACH TRUST&#146;S INVESTMENT POLICIES RELATING TO THE PORTION OF THE TRUST&#146;S NET ASSETS NOT INVESTED IN ACCORDANCE WITH THE TRUST&#146;S 80% INVESTMENT POLICY" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PROPOSAL&#160;NO.&#160;2:
    APPROVAL OR DISAPPROVAL OF A MODIFICATION<BR>
    TO EACH TRUST&#146;S INVESTMENT POLICIES RELATING TO THE PORTION
    OF THE<BR>
    TRUST&#146;S NET ASSETS NOT INVESTED IN ACCORDANCE WITH THE
    TRUST&#146;S 80%<BR>
    INVESTMENT POLICY</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each Trust has investment policies relating to the portion of
    the Trust&#146;s net assets not invested in accordance with its
    80% investment policy. These investment policies, as set forth
    in the respective Trust&#146;s original Prospectus, are also
    fundamental policies of the Trust. Under the Investment Company
    Act, a fundamental policy may not be changed without the
    favorable vote of a majority of the outstanding voting
    securities of the Trust, as defined in the Investment Company
    Act. Such a majority is defined as the lesser of (a)&#160;67% or
    more of the shares present at the Meeting, if the holders of
    more than 50% of the outstanding shares of the Trust are present
    or represented by proxy, or (b)&#160;more than 50% of the
    outstanding shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In this regard, each Trust currently may invest up to 20% of its
    net assets in escrow secured obligations, short term, high
    quality securities which may be either taxable or tax-exempt,
    options and futures (&#147;20%
</DIV>

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    <BR>
    6
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<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
     Policy&#148;). Escrow secured obligations are Municipal
    Obligations which are backed by an escrow or trust account
    containing sufficient U.S.&#160;Government securities or
    U.S.&#160;Government agency securities backed by the full faith
    and credit of the United States to ensure timely payment of
    principal and interest thereon. Additionally, each Trust may
    invest any percentage of its net assets in short term, high
    quality securities for defensive purposes or to keep cash on
    hand fully invested (&#147;Defensive Policy&#148;).
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At the
    <FONT style="white-space: nowrap">September&#160;24-25,</FONT>
    2008 Board meeting, the Board of Trustees of each Trust
    unanimously approved a recommendation by the Investment Adviser
    that each Trust seek authorization from its Shareholders to
    modify each Trust&#146;s investment policy to permit the Trust
    to invest up to 20% of its net assets in taxable or tax-exempt
    fixed income securities rated at least investment grade by a
    NRSRO or, if not rated, determined by the Investment Adviser to
    be of comparable quality, including uninsured Municipal
    Obligations, obligations of the U.S.&#160;government, its
    respective agencies or instrumentalities, and other fixed income
    obligations, and, during periods in which the Investment Adviser
    believes that changes in economic, financial or political
    conditions make it advisable to do so, to an unlimited extent in
    such investments for temporary defensive purposes. The Trust may
    also invest in options, futures, swaps and other derivatives.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a Trust invests in options
    <FONT style="white-space: nowrap">and/or</FONT>
    futures, its participation in those markets would subject the
    Trust&#146;s portfolio to certain risks. If the Investment
    Adviser&#146;s predictions of movements in the direction of the
    markets are inaccurate, the adverse consequences to the Trust
    (e.g., a reduction in the Trust&#146;s net asset value or a
    reduction in the amount of income available for distribution)
    may leave the Trust in a worse position than if these strategies
    were not used. Other risks inherent in the use of options and
    futures include, for example, the possible imperfect correlation
    between the price of options and futures contracts and movements
    in the prices of the securities being hedged, and the possible
    absence of a liquid secondary market for any particular
    instrument. Certain options may be over-the-counter options
    which are options negotiated with dealers; there is no secondary
    market for these investments. If a Trust invests in swaps
    <FONT style="white-space: nowrap">and/or</FONT> other
    derivatives, the Trust will be exposed to the credit of the
    counterparties to the swap or derivative contract and their
    ability to satisfy the terms of the agreements, which exposes
    the Trust to the risk that the counterparties may default on
    their obligations to perform under the agreements. In the event
    of a bankruptcy or insolvency of a counterparty, the Trust could
    experience delays in liquidating the positions and significant
    losses, including declines in the value of its investment during
    the period in which the Trust seeks to enforce its rights,
    inability to realize any gains on its investment during such
    period and fees and expenses incurred in enforcing its rights.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, the Board of Trustees of each Trust unanimously
    approved a recommendation by the Investment Adviser that each
    Trust seek authorization from its Shareholders to designate each
    Trust&#146;s 20% investment policy as a non-fundamental policy
    of the Trust. Each Trust&#146;s 20% Policy and Defensive Policy
    are set forth in Appendix&#160;A. This proposed reclassification
    will allow the Investment Adviser to modify the 20% investment
    policy of each Trust, subject to the approval of the Board of
    Trustees, without incurring the delay and expense associated
    with seeking a Shareholder vote each time a change to the policy
    is deemed necessary and will facilitate the ability of the
    Investment Adviser to respond promptly to evolving markets and
    changes in market conditions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Investment Adviser believes that the proposed modification
    will increase its flexibility to invest in a broader range of
    investment grade Municipal Obligations, which may enable it to
    increase the yield of the Trusts&#146; shares without unduly
    increasing risks. The Board of Trustees of each Trust evaluated
    the potential benefits of the proposed modification and
    expansion in the universe of permissible investments of the
    Trust and concluded that the Proposal is in the best interest of
    its Shareholders.
</DIV>

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    <BR>
    7
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The Board of Trustees of each Trust unanimously recommends
    that Shareholders of each Trust approve the proposed
    modification to each Trust&#146;s investment policies, as
    discussed above.</B>
</DIV>


<!-- link1 "OVERVIEW OF PROPOSALS 3 AND 4 RELATED TO THE ELIMINATION OR MODIFICATION OF CERTAIN FUNDAMENTAL INVESTMENT POLICIES AND RESTRICTIONS" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OVERVIEW
    OF PROPOSALS&#160;3 AND 4 RELATED TO THE<BR>
    ELIMINATION OR MODIFICATION OF CERTAIN<BR>
    FUNDAMENTAL INVESTMENT POLICIES AND RESTRICTIONS</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Investment Company Act requires a registered investment
    company, including each of the Trusts, to have certain specific
    investment policies that can be changed only with Shareholder
    approval. Investment companies may also elect to designate other
    policies that may be changed only with a Shareholder vote. Both
    types of policies are often referred to as
    &#147;fundamental&#148; policies. In this Joint Proxy Statement,
    the word &#147;restriction&#148; or &#147;limitation&#148; is
    sometimes used to describe a fundamental policy. Certain
    fundamental policies have been adopted in the past by the Trusts
    to reflect certain regulatory, business or industry conditions
    that are no longer in effect. For example, the National
    Securities Markets Improvement Act of 1996 (&#147;NSMIA&#148;)
    preempted many investment restrictions formerly imposed by state
    securities laws and regulations (these state laws and
    regulations are often referred to as &#147;blue sky&#148; laws
    and regulations), so those state requirements no longer apply.
    As a result, many of the current restrictions unnecessarily
    limit the investment strategies available to the Trusts&#146;
    Investment Adviser in managing each Trust&#146;s assets. In
    addition, the lack of uniform standards across the Trusts leads
    to operating inefficiencies and increases the costs of
    compliance monitoring. Accordingly, the Trusts&#146; Investment
    Adviser recently conducted a review of each Trust&#146;s
    fundamental policies with a goal to simplify, modernize and make
    consistent with those of other investment companies advised by
    the Investment Adviser or its affiliates, the Trusts&#146;
    policies that are required to be fundamental under the
    Investment Company Act.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Proposal&#160;Nos. 3 and 4 seek Shareholder approval of changes
    that are intended to accomplish the foregoing goals. The
    Investment Adviser notes that each Proposal does not apply to
    each Trust. The proposed changes to the fundamental policies are
    discussed in detail below. The tables following this discussion
    will assist you in determining which Proposals apply to your
    Trust(s) and which investment policy or restriction changes are
    proposed for each Trust. By reducing to a minimum those policies
    that can be changed only by a Shareholder vote, each Trust
    should be able to avoid the costs and delay associated with a
    Shareholder meeting and each Board believes that the Investment
    Adviser&#146;s ability to manage the Trust&#146;s portfolio in a
    changing regulatory or investment environment will be enhanced.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Shareholders should note that certain of the proposed
    fundamental policies are stated in terms of &#147;to the extent
    permitted by the Investment Company Act or the rules and
    regulations thereunder.&#148; Applicable law can change over
    time and may become more or less restrictive as a result. The
    fundamental policies have been drafted in this manner so that a
    change in law would not require the Trusts to seek a Shareholder
    vote to amend the policy to conform to applicable law, as
    revised. Although the Proposals give the Trusts greater
    flexibility to respond to future investment opportunities, the
    Investment Adviser does not anticipate that the changes,
    individually or in the aggregate, will result at this time in a
    material change in the level of investment risk associated with
    an investment in the Trusts, nor does the Investment Adviser
    anticipate that the proposed elimination and modification of
    certain fundamental investment policies and restrictions will,
    individually or in the aggregate, change materially the manner
    in which the Trusts are managed and operated.
</DIV>

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    <BR>
    8
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<!-- link1 "PROPOSAL NO. 3: APPROVAL OR DISAPPROVAL OF ELIMINATION OF CERTAIN FUNDAMENTAL INVESTMENT POLICIES AND RESTRICTIONS" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PROPOSAL&#160;NO.&#160;3:
    APPROVAL OR DISAPPROVAL OF<BR>
    ELIMINATION OF CERTAIN FUNDAMENTAL<BR>
    INVESTMENT POLICIES AND RESTRICTIONS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="11%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="7%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="7%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="8%">&nbsp;</TD>	<!-- colindex=06 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="7%">&nbsp;</TD>	<!-- colindex=07 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="8%">&nbsp;</TD>	<!-- colindex=08 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=09 type=gutter -->
    <TD width="8%">&nbsp;</TD>	<!-- colindex=09 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=10 type=gutter -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=10 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=11 type=gutter -->
    <TD width="7%">&nbsp;</TD>	<!-- colindex=11 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=12 type=gutter -->
    <TD width="8%">&nbsp;</TD>	<!-- colindex=12 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>3H<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>3K<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Eliminate<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Eliminate<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>3F<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Limitation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Policy<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>3A<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>3D<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>3E<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Eliminate<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>on<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Prohibiting<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Eliminate<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>3B<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>3C<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Eliminate<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Eliminate<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Director/<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>3G<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Investments <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>3I<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>3J<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Investments <BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Pledging<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Eliminate<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Eliminate<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Exercising<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Unseasoned<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Officer<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Eliminate<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>in Taxable<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Eliminate<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Eliminate<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>in Other<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Assets<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Margin<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Oil &#038; Gas<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Control<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Companies<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Ownership<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Common<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Debt<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Puts/Calls<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Short Sales<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Investment<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Trust</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Policy</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Policy</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Policy</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Policy</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Policy</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Policy</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Stock Policy</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Securities</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Policy</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Policy</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Companies</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>ICS</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>IIC</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>IMC</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>IMT</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>IIM</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>IMS</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Proposal&#160;3.A.&#160;&#151;
    Elimination of the Fundamental Policy Restricting<BR>
    the Trust&#146;s Ability to Pledge Assets</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<!-- link1 "APPLICABLE TRUSTS: ALL TRUSTS" -->
<B> APPLICABLE
    TRUSTS: ALL TRUSTS</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Reasons
    for the Elimination of the Investment Policy:</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each Trust&#146;s fundamental policy prohibiting or restricting
    pledging or otherwise encumbering the Trust&#146;s assets was
    based on the requirements formerly imposed by state &#147;blue
    sky&#148; regulators as a condition to registration. As a result
    of NSMIA, this policy is no longer required and may be
    eliminated from each Trust&#146;s fundamental investment
    policies.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Trusts&#146; current limits on pledging may conflict with
    each Trust&#146;s ability to borrow money for temporary
    emergency purposes or for any other purpose. This conflict
    arises because banks may require borrowers such as the Trusts to
    pledge assets in order to collateralize the amount borrowed.
    These collateral requirements are typically for amounts at least
    equal to, and often larger than, the principal amount of the
    loan. The Trusts&#146; current policies, however, could be read
    to prevent these types of collateral arrangements and could
    therefore have the effect of reducing the amount that the Trusts
    may borrow in these situations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although the Investment Adviser currently plans, on behalf of
    the Trusts, to engage only in pledging in connection with
    borrowing money for temporary emergency purposes, pledging
    assets could decrease the Trusts&#146; ability to liquidate
    assets. If the Trusts pledge a large portion of their assets,
    the ability to meet various obligations could be delayed. In any
    event, the Trusts&#146; current borrowing limits would remain
    consistent with limits prescribed under the Investment Company
    Act.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    9
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<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Proposal&#160;3.B.&#160;&#151;
    Elimination of the Fundamental Policy Restricting<BR>
    Purchases of Securities on Margin</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<!-- link1 "APPLICABLE TRUSTS: ALL TRUSTS" -->
<B> APPLICABLE
    TRUSTS: ALL TRUSTS</B>
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Reasons
    for the Elimination of the Investment Policy:</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each Trust&#146;s fundamental policy restricting margin
    activities was based on the requirements formerly imposed by
    state &#147;blue sky&#148; regulators as a condition to
    registration. As a result of NSMIA, these policies are no longer
    required and may be eliminated from each Trust&#146;s
    fundamental investment policies. Furthermore, it is unlawful for
    an investment company, in contravention of applicable Securities
    and Exchange Commission (the &#147;SEC&#148;) rules or orders,
    to purchase securities on margin except for such short term
    credits as are necessary for clearing transactions. As a result,
    elimination of each Trust&#146;s restriction on margin
    activities is unlikely to affect the Trust&#146;s investment
    strategies at this time. However, in the event of a change in
    the applicable federal regulatory requirements, the Trusts would
    have the flexibility to alter their investment practice without
    the expense and delay of a Shareholder vote. To the extent that
    a Trust engages in margin activities, it will be subject to a
    correspondingly greater degree of risk associated with that
    activity.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Proposal&#160;3.C.&#160;&#151;
    Elimination of the Fundamental Policy Prohibiting<BR>
    Investments in Oil, Gas and Other Types of Mineral
    Leases</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<!-- link1 "APPLICABLE TRUSTS: ALL TRUSTS" -->
<B> APPLICABLE
    TRUSTS: ALL TRUSTS</B>
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Reasons
    for the Elimination of the Investment Policy:</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each Trust&#146;s fundamental policy prohibiting its ability to
    purchase interests in oil, gas or other types of minerals
    leases, rights or royalty contracts was based on the
    requirements formerly imposed by state &#147;blue sky&#148;
    regulators as a condition to registration. As a result of NSMIA,
    this policy is no longer applicable and may be eliminated from
    the Trusts&#146; investment policies. There are no current
    expectations that the Trusts will engage in such activities.
    However, elimination of the fundamental policy would afford the
    Trusts the flexibility to make such investments without the
    delay and expense of a Shareholder vote. To the extent that a
    Trust invests in oil, gas and other types of mineral leases, it
    will be subject to a correspondingly greater degree of risk
    associated with that investment.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Proposal&#160;3.D.&#160;&#151;
    Elimination of the Fundamental Policy Prohibiting<BR>
    Investments for Purposes of Exercising Control</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<!-- link1 "APPLICABLE TRUSTS: ALL TRUSTS" -->
<B> APPLICABLE
    TRUSTS: ALL TRUSTS</B>
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Reasons
    for the Elimination of the Investment Policy:</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each Trust&#146;s fundamental policy prohibiting it from
    investing in a security for the purpose of obtaining or
    exercising control over, or management of, the issuer was based
    on the requirements formerly imposed by state &#147;blue
    sky&#148; regulators as a condition to registration. As a result
    of NSMIA, this policy is no longer required and may be
    eliminated from a Trust&#146;s investment policies. Eliminating
    this investment restriction would not affect the Trusts&#146;
    investment strategies, as the Trusts do not ordinarily invest
    for the purpose of exercising control over companies.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    10
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<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Proposal&#160;3.E.&#160;&#151;
    Elimination of the Fundamental Policy<BR>
    Regarding Investments in Unseasoned Companies</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<!-- link1 "APPLICABLE TRUSTS: ALL TRUSTS" -->
<B> APPLICABLE
    TRUSTS: ALL TRUSTS</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Reasons
    for the Elimination of the Investment Policy:</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each Trust&#146;s fundamental policy prohibiting investments in
    issuers that have been in business for less than three years
    (i.e., unseasoned companies) was based on the requirements
    formerly imposed by state &#147;blue sky&#148; regulators as a
    condition to registration. As a result of NSMIA, this policy is
    no longer required and may be eliminated from a Trust&#146;s
    fundamental investment policies. Elimination of the policy would
    permit a Trust to further avail itself of investment
    opportunities in smaller capitalization, less seasoned
    companies. Such companies may not have experience in operating
    through prolonged periods of economic difficulty and, as a
    result, the price of their shares may be more volatile than the
    shares of companies that have longer operating histories. To the
    extent that a Trust invests in these types of issuers, it may be
    subject to greater risks.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Proposal&#160;3.F.&#160;&#151;
    Elimination of the Fundamental Policy Prohibiting or Restricting
    the</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Purchase of Securities of Issuers in which Trustees or
    Officers Have an Interest</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<!-- link1 "APPLICABLE TRUSTS: ALL TRUSTS" -->
<B> APPLICABLE
    TRUSTS: ALL TRUSTS</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Reasons
    for the Elimination of the Investment Policy:</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each Trust&#146;s fundamental policy prohibiting or restricting
    the purchase of securities in which Trust officers or Trustees
    have an interest was originally adopted to address the
    requirements formerly imposed by state &#147;blue sky&#148;
    regulators as a condition to registration. As a result of NSMIA,
    this policy is no longer required and may be eliminated from the
    Trusts&#146; fundamental investment policies. Eliminating this
    restriction would increase the Investment Adviser&#146;s
    flexibility when choosing investments on a Trust&#146;s behalf.
    In addition, the Investment Adviser believes that the policy is
    unnecessary because each Trust&#146;s Code of Ethics adequately
    covers and provides for the monitoring of the Trust&#146;s
    securities purchases and security ownership by the Trust&#146;s
    officers and Trustees. Further, securities purchased by a Trust
    that may pose conflicts of interest are subject to the
    restrictions imposed by Section&#160;17 of the Investment
    Company Act and the rules thereunder.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Proposal&#160;3.G.&#160;&#151;
    Elimination of the Fundamental Policy<BR>
    Regarding Purchase of Common Stock</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<!-- link1 "APPLICABLE TRUSTS: ALL TRUSTS" -->
<B> APPLICABLE
    TRUSTS: ALL TRUSTS</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Reasons
    for the Elimination of the Investment Policy:</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each applicable Trust&#146;s fundamental policy prohibiting it
    from investing in common stock was based on the requirements
    formerly imposed by state &#147;blue sky&#148; regulators as a
    condition to registration. As a result of NSMIA, this policy is
    no longer required and may be eliminated from a Trust&#146;s
    investment policies. Eliminating this investment restriction
    would not affect the Trust&#146;s principal investment
    strategies.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    11
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<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Proposal&#160;3.H.&#160;&#151;
    Elimination of the Fundamental Policy Restricting<BR>
    Investments in Taxable Debt Securities</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<!-- link1 "APPLICABLE TRUSTS: IMC, IMT, IIM AND IMS" -->
<B>
    APPLICABLE TRUSTS: IMC, IMT,&#160;IIM AND IMS</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Reasons
    for the Elimination of the Investment Policy:</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each applicable Trust&#146;s fundamental policy prohibiting it
    from purchasing more than 10% of all outstanding taxable debt
    securities of any one issuer is not required by federal or state
    securities laws and therefore may be eliminated from a
    Trust&#146;s investment policies. Eliminating this investment
    restriction would not affect the Trust&#146;s principal
    investment strategies.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Proposal&#160;3.I.&#160;&#151;
    Elimination of the Fundamental Policy<BR>
    Regarding the Purchase or Sale of Puts, Calls and Combinations
    Thereof</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<!-- link1 "APPLICABLE TRUSTS: ALL TRUSTS" -->
<B> APPLICABLE
    TRUSTS: ALL TRUSTS</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Reasons
    for the Elimination of the Investment Policy:</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each Trust&#146;s fundamental policy limiting investments
    involving puts, calls and combinations thereof is not required
    under the Investment Company Act to be among a Trust&#146;s
    fundamental investment policies. The Board of each Trust
    recommends that Shareholders vote to eliminate this fundamental
    investment limitation. The elimination of each Trust&#146;s
    fundamental policy limiting investments involving puts, calls or
    combinations thereof would permit the Trust greater flexibility
    to respond to market and other developments. The Trusts&#146;
    investment policies set forth in Proposal&#160;No.&#160;2
    continue to place certain limits on the percentage of Trust
    assets that may be invested in options. Put and call options
    involve a certain degree of risk. If a put or call option
    written by a Trust were exercised, the Trust would be obligated
    to buy or sell the underlying security at the exercise price. As
    a result, writing a put option involves the risk of a decrease
    in the market value of the underlying security, in which case
    the option could be exercised and the underlying security would
    then be sold by the option holder to the Trust at a higher price
    than its current market value. Writing a call option involves
    the risk of an increase in the market value of the underlying
    security, in which case the option could be exercised and the
    underlying security would then be sold by the Trust to the
    option holder at a lower price than its current market value. To
    the extent that a Trust makes investments involving puts, calls
    and combinations thereof, it will be subject to a
    correspondingly greater degree of risk associated with that
    investment.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Proposal&#160;3.J.&#160;&#151;
    Elimination of the Fundamental Policy<BR>
    Regarding the Short Sale of Securities</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<!-- link1 "APPLICABLE TRUSTS: ALL TRUSTS" -->
<B> APPLICABLE
    TRUSTS: ALL TRUSTS</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Reasons
    for the Elimination of the Investment Policy:</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each of the Trusts has a fundamental policy that prohibits the
    Trust from making short sales. This policy is not required under
    the Investment Company Act to be among a Trust&#146;s
    fundamental investment policies. The Board of each Trust
    recommends that Shareholders vote to eliminate this fundamental
    investment limitation.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    12
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<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
     No Trust has any current intention to engage in short sales.
    The elimination of the current policy would give the Investment
    Adviser flexibility in its ability to respond to the
    availability of new instruments and strategies without the costs
    and delays associated with a future Shareholder vote.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Proposal&#160;3.K.&#160;&#151;
    Elimination of the Fundamental Policy<BR>
    Prohibiting Investments in Other Investment Companies</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<!-- link1 "APPLICABLE TRUSTS: ALL TRUSTS" -->
<B> APPLICABLE
    TRUSTS: ALL TRUSTS</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Reasons
    for the Elimination of the Investment Policy:</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The fundamental investment policy on investments in other
    investment companies was based on requirements formerly imposed
    by state &#147;blue sky&#148; regulators as a condition to
    registration. As a result of NSMIA, this policy is no longer
    required to be among a Trust&#146;s fundamental investment
    policies. Moreover, in the absence of this policy, the Trusts
    are still subject to the limitations on investments in other
    investment companies imposed on all funds under
    Section&#160;12(d)(1)(A) of the Investment Company Act. In
    general, under that section, an investment company
    (&#147;Acquiring Fund&#148;) cannot acquire shares of another
    investment company (&#147;Acquired Fund&#148;) if, after the
    acquisition, (i)&#160;the Acquiring Fund would own more than 3%
    of the Acquired Fund&#146;s securities; (ii)&#160;more than 5%
    of the total assets of the Acquiring Fund would be invested in
    the Acquired Fund; and (iii)&#160;more than 10% of the total
    assets of the Acquiring Fund would be invested in other
    investment companies (including the Acquired Fund). The Board of
    each Trust recommends that Shareholders vote to eliminate this
    fundamental investment limitation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The Board of Trustees of each Trust unanimously recommends
    that Shareholders of each Trust approve the proposed
    eliminations.</B>
</DIV>


<!-- link1 "PROPOSAL NO. 4: APPROVAL OR DISAPPROVAL OF A MODIFICATION OF CERTAIN FUNDAMENTAL INVESTMENT POLICIES AND RESTRICTIONS" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PROPOSAL&#160;NO.&#160;4:
    APPROVAL OR DISAPPROVAL OF A<BR>
    MODIFICATION OF CERTAIN FUNDAMENTAL<BR>
    INVESTMENT POLICIES AND RESTRICTIONS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="21%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="13%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="13%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="13%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="13%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="13%">&nbsp;</TD>	<!-- colindex=06 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>4E<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>4A<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>4B<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>4D<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Modify<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Modify<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Modify<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>4C<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Modify<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Senior<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Diversification<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Borrowing<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Modify Loan<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Commodities<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Securities<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Trust</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Policy</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Policy</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Policy</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Policy</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Policy</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>ICS</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>IIC</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>IMC</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>IMT</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>IIM</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>IMS</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    X
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    13
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Proposal&#160;4.A.&#160;&#151;
    Modification of the Fundamental Policy<BR>
    Regarding Diversification</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<!-- link1 "APPLICABLE TRUSTS: IMC, IMT, IIM AND IMS" -->
<B>
    APPLICABLE TRUSTS: IMC, IMT,&#160;IIM AND IMS</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Proposed New Fundamental Investment
    Policy:</B>&#160;&#160;The Trust may not invest in a manner
    inconsistent with its classification as a &#147;diversified
    company&#148; as provided by (i)&#160;the Investment Company
    Act, as amended from time to time, (ii)&#160;the rules and
    regulations promulgated by the SEC under the Investment Company
    Act, as amended from time to time, or (iii)&#160;an exemption or
    other relief applicable to the Trust from the provisions of the
    Investment Company Act, as amended from time to time.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Discussion
    of Proposed Modification:</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Section&#160;8(b) of the Investment Company Act requires an
    investment company to state whether it is
    &#147;diversified&#148; as that term is defined in the
    Investment Company Act. Consequently, the proposed modification
    is consistent with the Investment Company Act, which only
    requires that a Trust state whether it is diversified. The
    Investment Company Act requires that funds classify themselves
    as either diversified or non diversified. The difference is that
    diversified funds are subject to stricter percentage limits on
    the amount of assets that can be invested in any one company.
    Specifically, a diversified fund may not, with respect to 75% of
    its total assets: (1)&#160;invest more than 5% of its total
    assets in the securities of one issuer, or (2)&#160;hold more
    than 10% of the outstanding voting securities of such issuer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No change is being proposed to a Trust&#146;s designation as
    diversified. Instead, the proposed change would modify a
    Trust&#146;s fundamental investment policies regarding its
    sub-classification under the Investment Company Act to rely on
    the definitions of the term &#147;diversified&#148; in the
    Investment Company Act rather than stating the relevant
    percentage limitations expressed under current law. As a result,
    without a Trust&#146;s Board or Shareholders taking further
    action, the modified investment policy would automatically apply
    the requirements of &#147;diversification&#148; under the
    Investment Company Act to a Trust as those requirements may be
    amended from time to time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certain &#147;diversified&#148; Trusts have adopted limitations
    more restrictive than those required under the Investment
    Company Act, specifically these Trusts apply the 5% limitation
    <FONT style="white-space: nowrap">and/or</FONT> the
    10% limitation referred to above to 100% of the Trust&#146;s
    assets rather than to 75% of the Trust&#146;s assets as
    permitted under the Investment Company Act. The proposed change
    would allow each of these Trusts the ability to invest a higher
    percentage of its assets in particular issuers when the
    Investment Adviser deems it appropriate and in the Trust&#146;s
    best interest while still qualifying as a diversified fund under
    the Investment Company Act. To the extent that a Trust invests a
    greater proportion of its assets in a single issuer, it will be
    subject to a correspondingly greater degree of risk associated
    with that investment.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Proposal&#160;4.B.&#160;&#151;
    Modification of the Fundamental Policy</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Regarding Borrowing Money</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<!-- link1 "APPLICABLE TRUSTS: ALL TRUSTS" -->
<B> APPLICABLE
    TRUSTS: ALL TRUSTS</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Proposed New Fundamental Investment
    Policy:</B>&#160;&#160;The Trust may not borrow money, except
    the Trust may borrow money to the extent permitted by
    (i)&#160;the Investment Company Act, as amended from time to
    time, (ii)&#160;the rules and regulations promulgated by the SEC
    under the Investment Company Act, as amended from
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    14
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    time to time, or (iii)&#160;an exemption or other relief
    applicable to the Trust from the provisions of the Investment
    Company Act, as amended from time to time.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Discussion
    of Proposed Modification:</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Every Trust is required to have a fundamental policy with
    respect to borrowing and each Trust is presently prohibited from
    borrowing, except as borrowings may be necessary for temporary
    or emergency purposes or for repurchase of its shares. The
    proposed fundamental policy for borrowing would permit the
    Trusts to borrow up to the full extent permitted under the
    Investment Company Act. Currently, the Investment Company Act
    permits the Trusts to borrow from banks, provided that
    immediately following any such borrowing there is an asset
    coverage of at least 300% for all Trust borrowings and in the
    event such asset coverage falls below 300% the Trust will within
    three days or such longer period as the SEC may prescribe by
    rules and regulations, reduce the amount of its borrowings to an
    extent that the asset coverage of such borrowings shall be at
    least 300%. There is no current intention, however, that any of
    the Trusts would increase their borrowing capacity. To the
    extent that a Trust increases the amount it is permitted to
    borrow, it will be subject to a correspondingly greater degree
    of risk associated with such borrowing.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a Trust borrows and uses the proceeds to make additional
    investments, the income and appreciation from such investments
    will improve its performance if they exceed the associated
    borrowing costs, but such investments will impair its
    performance if the income and appreciation therefrom are less
    than such borrowing costs. This factor is known as leverage. The
    use of leverage is considered speculative and its use could
    increase the volatility of a Trust&#146;s assets.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Proposal&#160;4.C.&#160;&#151;
    Modification of the Fundamental Policy Regarding Loans</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<!-- link1 "APPLICABLE TRUSTS: ALL TRUSTS" -->
<B> APPLICABLE
    TRUSTS: ALL TRUSTS</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Proposed New Fundamental Investment
    Policy:</B>&#160;&#160;The Trust may not make loans of money or
    property to any person, except (a)&#160;to the extent that
    securities or interests in which the Trust may invest are
    considered to be loans, (b)&#160;through the loan of portfolio
    securities, (c)&#160;by engaging in repurchase agreements or
    (d)&#160;as may otherwise be permitted by (i)&#160;the
    Investment Company Act, as amended from time to time,
    (ii)&#160;the rules and regulations promulgated by the SEC under
    the Investment Company Act, as amended from time to time, or
    (iii)&#160;an exemption or other relief applicable to the Trust
    from the provisions of the Investment Company Act, as amended
    from time to time.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Discussion
    of Proposed Modification:</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The proposed change is intended to clarify a Trust&#146;s
    ability to engage in securities lending to the extent permitted
    by the Investment Company Act and the then current SEC policy.
    The Investment Company Act currently limits loans of a
    Trust&#146;s securities to one third of the Trust&#146;s assets,
    including any collateral received from the loan, provided that
    the loans are 100% collateralized by cash or cash equivalents.
    In the future, should the rules and regulations governing loans
    by funds change, the proposed restriction would automatically
    conform to those new requirements without the need to solicit
    Shareholder votes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The proposed amendment would not affect the Trusts&#146;
    investment strategies. If this Proposal is approved by
    Shareholders, the Trusts would be permitted to make loans to the
    maximum extent permitted under the Investment Company Act.
    Securities lending may be utilized in seeking to generate
    additional income for a
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    15
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<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Trust. In lending securities, the Trust will be subject to risk,
    which like those associated with other extensions of credit,
    include possible loss of rights in the collateral should the
    borrower fail financially.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Proposal&#160;4.D.&#160;&#151;
    Modification of the Fundamental Policy Regarding<BR>
    Investment in Commodities</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<!-- link1 "APPLICABLE TRUSTS: ALL TRUSTS" -->
<B> APPLICABLE
    TRUSTS: ALL TRUSTS</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Proposed New Fundamental Investment
    Policy:</B>&#160;&#160;The Trust may not purchase or sell
    physical commodities unless acquired as a result of ownership of
    securities or other instruments; provided that this restriction
    shall not prohibit the Trust from purchasing or selling options,
    futures contracts and related options thereon, forward
    contracts, swaps, caps, floors, collars and any other financial
    instruments or from investing in securities or other instruments
    backed by physical commodities or as otherwise permitted by
    (i)&#160;the Investment Company Act, as amended from time to
    time, (ii)&#160;the rules and regulations promulgated by the SEC
    under the Investment Company Act, as amended from time to time,
    or (iii)&#160;an exemption or other relief applicable to the
    Trust from the provisions of the Investment Company Act, as
    amended from time to time.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Discussion
    of Proposed Modification:</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The proposed changes to a Trust&#146;s policy are intended to
    make it clear that the Trusts may use futures contracts, options
    on futures contracts and other derivatives. These instruments
    are generally accepted under modern portfolio management and are
    regularly used by many funds and other institutional investors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Derivatives involve the risk that interest rates, securities
    prices and currency markets will not move in the direction that
    a Trust&#146;s portfolio manager anticipates and the risk of
    imperfect correlation between the price of derivative
    instruments and movements in the direct investments for which
    derivatives are a substitute. Other risks include the possible
    absence of a liquid secondary market for any particular
    instrument and possible imposed price fluctuation limits by
    securities exchanges, either of which may make it difficult or
    impossible to close out a position when desired, the risk that
    adverse price movements in an instrument can result in a loss
    substantially greater than the Trust&#146;s initial investment
    in that instrument (in some cases, the potential loss is
    unlimited), and the risk that the counterparty will not perform
    its obligations.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If Shareholders of the Trusts approve this Proposal, the Trusts
    would have the flexibility to invest in futures contracts and
    options to the extent determined appropriate by the Investment
    Adviser and the Board. To the extent that a Trust invests in
    securities backed by physical commodities or as otherwise
    permitted, it will be subject to a correspondingly greater
    degree of risk associated with that investment.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Proposal&#160;4.E.&#160;&#151;
    Modification of the Fundamental Policy Regarding<BR>
    Issuance of Senior Securities</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<!-- link1 "APPLICABLE TRUSTS: ALL TRUSTS" -->
<B> APPLICABLE
    TRUSTS: ALL TRUSTS</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Proposed New Fundamental Investment
    Policy:</B>&#160;&#160;The Trust may not issue senior
    securities, except the Trust may issue senior securities to the
    extent permitted by (i)&#160;the Investment Company Act, as
    amended from time to time, (ii)&#160;the rules and regulations
    promulgated by the SEC under the Investment Company Act, as
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    16
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<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    amended from time to time, or (iii)&#160;an exemption or other
    relief applicable to the Trust from the provisions of the
    Investment Company Act, as amended from time to time.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Discussion
    of Proposed Modification:</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although the definition of a &#147;senior security&#148;
    involves complex statutory and regulatory concepts, a senior
    security is generally thought of as an obligation of a fund
    which has a claim to the fund&#146;s assets or earnings that
    takes precedence over the claims of the fund&#146;s
    shareholders. The Investment Company Act generally prohibits
    funds from issuing senior securities; however funds are
    permitted to engage in certain types of transactions that might
    be considered &#147;senior securities&#148; as long as certain
    conditions are satisfied. For example, a transaction, which
    obligates a fund to pay money at a future date (e.g., the
    purchase of securities to be settled on a date that is further
    away than the normal settlement period), may be considered a
    &#147;senior security.&#148; A fund is permitted to enter into
    this type of transaction if it maintains a segregated account
    containing liquid securities in value equal to its obligation to
    pay cash for the securities at a future date. The Trusts utilize
    transactions that may be considered to give rise to &#147;senior
    securities&#148; only in accordance with applicable regulatory
    requirements under the Investment Company Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Adoption of the proposed limitation on senior securities is not
    expected to affect the way in which a Trust is managed, the
    investment performance of any Trust, or the securities or
    instruments in which a Trust invests. Certain of the Trusts
    currently have outstanding Preferred Shares, which would be
    deemed to be senior securities under the definition set forth in
    the Investment Company Act. The proposed limitation would
    recognize that Trusts may issue such securities only to the
    extent permitted under the Investment Company Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The Board of Trustees of each Trust unanimously recommends
    that Shareholders of each Trust approve the proposed
    modifications.</B>
</DIV>


<!-- link1 "REQUIRED VOTE FOR EACH PROPOSAL" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">REQUIRED
    VOTE FOR EACH PROPOSAL</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Approval of each Proposal requires the approval of the holders
    of a &#147;majority of the outstanding voting securities&#148;
    of each Trust which under the Investment Company Act means the
    affirmative vote of the lesser of (a)&#160;67% or more of the
    voting securities present at the Meeting or represented by proxy
    if the holders of more than 50% of the outstanding voting
    securities of the Trust are present or represented by proxy or
    (b)&#160;more than 50% of the outstanding voting securities of
    the Trust. Proposal&#160;No.&#160;1 will be voted on separately
    by Shareholders holding Preferred Shares of each Trust. Each
    Board has considered various factors and believes that approval
    of these investment restriction and policy changes are in the
    best interest of each Trust and its Shareholders. If these
    Proposals are not approved by any Trust, that Trust&#146;s
    current fundamental investment policies and restrictions will
    remain in effect.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The Board of each Trust, including a majority of the
    independent Board members, recommends that Shareholders vote
    &#147;FOR&#148; each of the Trust&#146;s Proposals, as described
    above.</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>


<!-- link1 "SPECIAL NOTICE TO SHAREHOLDERS OF THE TRUSTS" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SPECIAL
    NOTICE TO SHAREHOLDERS OF THE TRUSTS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each Trust has certain investment practices relating to the
    Trust&#146;s investments in options and futures, variable rate
    obligations and when-issued or delayed delivery securities which
    require written notice to Shareholders with respect to any
    change to such investment practices. Appendix&#160;B sets forth
    the terms under which each Trust may invest in options, futures,
    variable rate obligations and when-issued or delayed delivery
    securities going forward.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    17
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This Joint Proxy Statement constitutes written notice to
    Shareholders with respect to these changes and, hereafter, the
    Trusts will no longer be required to provide written notice to
    Shareholders of further changes to the Trusts&#146; investment
    practices. A vote of Shareholders is not required with respect
    to this item.
</DIV>


<!-- link1 "SECURITY OWNERSHIP OF CERTAIN TRUSTEES, OFFICERS AND BENEFICIAL OWNERS" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SECURITY
    OWNERSHIP OF CERTAIN TRUSTEES, OFFICERS<BR>
    AND BENEFICIAL OWNERS</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of September 12, 2008, the aggregate number of shares of each
    Trust owned by the Trust&#146;s officers and Trustees as a group
    was less than one percent of each Trust&#146;s outstanding
    shares. To the knowledge of each Trust, no person was the
    beneficial owner of more than 5% of the Trust&#146;s shares, as
    of that date. The percentage ownership of Shares of each Trust
    changes from time to time depending on purchases and sales by
    Shareholders and the total number of shares outstanding.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>


<!-- link1 "THE INVESTMENT ADVISER" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">THE
    INVESTMENT ADVISER</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Investment Adviser serves as each Trust&#146;s investment
    adviser pursuant to an investment advisory agreement. The
    Investment Adviser maintains its offices at 522&#160;Fifth
    Avenue, New York, New York 10036. The Investment Adviser is a
    wholly-owned subsidiary of Morgan Stanley, a Delaware
    Corporation. Morgan Stanley is a preeminent global financial
    services firm engaged in securities trading and brokerage
    activities, as well as providing investment banking, research
    and analysis, financing and financial advisory services.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Morgan Stanley Services Company Inc., a wholly owned subsidiary
    of the Investment Adviser, serves as the Administrator of each
    Trust pursuant to an administration agreement. The Investment
    Adviser and the Administrator serve in various investment
    management, advisory, management and administrative capacities
    to investment companies and pension plans and other
    institutional and individual investors. The address of the
    Administrator is the same as that of the Investment Adviser set
    forth above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Morgan Stanley has its offices at 1585 Broadway, New York, New
    York 10036. There are various lawsuits pending against Morgan
    Stanley involving material amounts which, in the opinion of its
    management, will be resolved with no material effect on the
    consolidated financial position of the company.
</DIV>


<!-- link1 "ADDITIONAL INFORMATION" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ADDITIONAL
    INFORMATION</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event that the necessary quorum to transact business or
    the vote required to approve or reject any Proposal for any
    Trust is not obtained at the Meeting of any Trust, the persons
    named as proxies may propose one or more adjournments of the
    Meeting of the applicable Trust to permit further solicitation
    of proxies. Any such adjournment will require the affirmative
    vote of the holders of a majority of the applicable Trust&#146;s
    Shares present in person or by proxy at the Meeting. The persons
    named as proxies will vote in favor of such adjournment those
    proxies which have been received by the date of the Meeting.
    Abstentions and broker &#147;non-votes&#148; will not count in
    favor of or against any such vote for adjournment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Abstentions and broker &#147;non-votes&#148; will not count as
    votes in favor of any Proposal, and broker &#147;non-votes&#148;
    will not be deemed to be present at the Meeting of any Trust for
    purposes of determining whether a particular Proposal to be
    voted upon has been approved. Broker &#147;non-votes&#148; are
    Shares held in street name for which the broker indicates that
    instructions have not been received from the beneficial owners
    or other persons entitled to vote and for which the broker does
    not have discretionary voting authority.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    18
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<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->


<!-- link1 "REPORTS TO SHAREHOLDERS" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">REPORTS
    TO SHAREHOLDERS</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Each Trust&#146;s most recent Annual Report for the
    Trust&#146;s most recent fiscal year end and the most recent
    Semi-Annual Report succeeding the Annual Report have been
    previously sent to Shareholders and are available without charge
    upon request from Morgan Stanley&#146;s Client Relations
    Department, 2800 Post Oak Blvd, 44th&#160;Floor, Houston, Texas
    77056,
    <FONT style="white-space: nowrap">(888)&#160;421-4015</FONT>
    (toll-free).</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>


<!-- link1 "INTEREST OF CERTAIN PERSONS" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEREST
    OF CERTAIN PERSONS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Morgan Stanley, the Investment Adviser, Morgan
    Stanley&#160;&#038; Co., Incorporated, Morgan Stanley Services
    Company Inc. and certain of their respective Directors,
    Officers, and employees, including persons who are Trustees or
    Officers of the Trusts, may be deemed to have an interest in
    certain of the Proposals described in this Joint Proxy Statement
    to the extent that certain of such companies and their
    affiliates have contractual and other arrangements, described
    elsewhere in this Joint Proxy Statement, pursuant to which they
    are paid fees by the Trusts, and certain of those individuals
    are compensated for performing services relating to the Trusts
    and may also own shares of Morgan Stanley. Such companies and
    persons may thus be deemed to derive benefits from the approvals
    by Shareholders of such Proposals.
</DIV>


<!-- link1 "OTHER BUSINESS" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OTHER
    BUSINESS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The management of the Trusts knows of no other matters which may
    be presented at the Meetings. However, if any matters not now
    known properly come before the Meetings, it is the intention of
    the persons named in the enclosed form of proxy, or their
    substitutes, to vote all shares that they are entitled to vote
    on any such matter, utilizing such proxy in accordance with
    their best judgment on such matters.
</DIV>

<DIV style="margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="right" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    By Order of the Board of Trustees
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <DIV style="display:inline; text-align:center; width:90%"><FONT style="font-variant: SMALL-CAPS">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Mary
    E. Mullin</FONT></DIV><FONT style="font-variant: SMALL-CAPS">
    </FONT>
</DIV>

<DIV align="center" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="center" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Secretary</I>
</DIV>

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    <BR>
    19
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    has been left blank intentionally.)
    </FONT>
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<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>APPENDIX&#160;A</B>
</DIV>


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<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INVESTMENT
    POLICIES OF EACH OF IMC, IMT,&#160;IIM AND IMS SUBJECT TO THE
    </FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>PROPOSED CHANGE IN PROPOSAL&#160;NO.&#160;2</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    [T]he Trust may invest in escrow secured obligations that are
    entitled to the benefit of an escrow or trust account which
    contains securities issued or guaranteed by the
    U.S.&#160;Government or U.S.&#160;Government agencies and backed
    by the full faith and credit of the United States sufficient in
    amount to ensure the payment of interest and principal on the
    original interest payment and maturity dates. Such escrow
    secured obligations are normally regarded as having the credit
    characteristics of the underlying U.S.&#160;Government or
    U.S.&#160;Government agency securities. Such escrow secured
    obligations will generally not be insured.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Trust intends to emphasize investments in Municipal
    Obligations with long-term maturities because such long-term
    obligations generally produce higher income than short-term
    obligations although such longer-term obligations are more
    susceptible to market fluctuations resulting from changes in
    interest rates than shorter-term obligations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Trust may invest any percentage of its net assets in
    &#147;temporary investments,&#148; for defensive purposes (e.g.,
    investments made during times where temporary imbalances of
    supply and demand or other temporary dislocations in the
    Municipal Obligations market adversely affect the price at which
    Municipal Bonds, Notes and Commercial Paper are available), and
    in order to keep cash on hand fully invested. Temporary
    investments are short-term, high quality, generally uninsured
    securities which may be either tax-exempt or taxable. The Trust
    will invest only in temporary investments which are certificates
    of deposit of U.S.&#160;domestic banks, including foreign
    branches of domestic banks, with assets of $1&#160;billion or
    more; bankers&#146; acceptances; time deposits;
    U.S.&#160;Government securities; or debt securities rated within
    the highest grade by Moody&#146;s or S&#038;P (MIG-1 or SP-1
    respectively for Municipal Notes and
    <FONT style="white-space: nowrap">P-1</FONT> or
    <FONT style="white-space: nowrap">A-1</FONT>
    respectively for Municipal Commercial Paper) or, if not rated,
    are of comparable quality as determined by the Trustees, and
    which mature within one year from the date of purchase.
    Temporary investments of the Trust may also include repurchase
    agreements.
</DIV>


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<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INVESTMENT
    POLICIES OF EACH OF ICS AND IIC SUBJECT TO THE PROPOSED
    </FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>CHANGE IN PROPOSAL&#160;NO.&#160;2</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    [T]he Trust may invest in escrow secured obligations that are
    entitled to the benefit of an escrow or trust account which
    contains securities issued or guaranteed by the
    U.S.&#160;Government or U.S.&#160;Government agencies and backed
    by the full faith and credit of the United States sufficient in
    amount to ensure the payment of interest and principal on the
    original interest payment and maturity dates. Such escrow
    secured obligations are normally regarded as having the credit
    characteristics of the underlying U.S.&#160;Government or
    U.S.&#160;Government agency securities. Such escrow secured
    obligations will generally not be insured.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Trust intends to emphasize investments in California
    Municipal Obligations and Other Municipal Obligations with
    long-term maturities because such long-term obligations
    generally produce higher income than short-term obligations
    although such longer-term obligations are more susceptible to
    market fluctuations resulting from changes in interest rates
    than shorter-term obligations.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Trust may invest any percentage of its net assets in
    &#147;temporary investments&#148; for defensive purposes (e.g.,
    investments made during times where temporary imbalances of
    supply and demand or other temporary dislocations in the
    California Municipal Obligations market and Other Municipal
    Obligations market adversely
</DIV>

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    <BR>
    A-1
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    affect the price at which Municipal Bonds, Notes and Commercial
    Paper are available) and in order to keep cash on hand fully
    invested. Temporary investments are short-term, high quality,
    generally uninsured securities which may be either tax-exempt or
    taxable. The Trust will invest only in temporary investments
    which are certificates of deposit of U.S.&#160;domestic banks,
    including foreign branches of domestic banks, with assets of
    $1&#160;billion or more; bankers&#146; acceptances; time
    deposits; U.S.&#160;Government securities; or debt securities
    rated within the highest grade by Moody&#146;s or S&#038;P (MIG
    1 or SP-1 respectively for Municipal Notes and
    <FONT style="white-space: nowrap">P-1</FONT> or
    <FONT style="white-space: nowrap">A-1</FONT>
    respectively for Municipal Commercial Paper) or, if not rated,
    are of comparable quality as determined by the Investment
    Manager, and which mature within one year from the date of
    purchase. Temporary investments of the Trust may also include
    repurchase agreements.
</DIV>

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    <BR>
    A-2
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    <B>APPENDIX&#160;B</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Options and Futures</U>.</I>&#160;&#160;The Trust may
    invest in options and futures. The Trust may use options and
    futures to protect against a decline in the Trust&#146;s
    securities or an increase in prices of securities that may be
    purchased. If the Trust invests in options
    <FONT style="white-space: nowrap">and/or</FONT>
    futures, its participation in these markets would subject the
    Trust&#146;s portfolio to certain risks. If the Investment
    Adviser&#146;s predictions of movements in the direction of the
    markets are inaccurate, the adverse consequences to the Trust
    (e.g., a reduction in the Trust&#146;s net asset value or a
    reduction in the amount of income available for distribution)
    may leave the Trust in a worse position than if these strategies
    were not used. Other risks inherent in the use of options and
    futures include, for example, the possible imperfect correlation
    between the price of options and futures contracts and movements
    in the prices of the securities being hedged and the possible
    absence of a liquid secondary market for any particular
    instrument. Certain options may be over-the-counter options
    which are options negotiated with dealers; there is no secondary
    market for these investments and they may be difficult to value.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Variable Rate Obligations</U>.</I>&#160;&#160;The Trust
    may invest in Municipal Obligations of the type called variable
    rate obligations. The interest rate payable on a variable rate
    obligation is adjusted at predesignated periodic intervals.
    Other features may include the right whereby the Trust may
    demand prepayment of the principal amount of the obligation
    prior to its stated maturity (a &#147;demand feature&#148;) and
    the right of the issuer to prepay the principal amount prior to
    maturity. The principal benefit of a variable rate obligation is
    that the interest rate adjustment minimizes changes in the
    market value of the obligation. As a result, the purchase of
    variable rate obligations should enhance the ability of the
    Trust to maintain a stable net asset value per share and to sell
    obligations prior to maturity at a price that is approximately
    the full principal amount of the obligations. The principal
    benefit to the Trust of purchasing obligations with a demand
    feature is that liquidity, and the ability of the Trust to
    obtain repayment of the full principal amount of an obligation
    prior to maturity, is enhanced. The payment of principal and
    interest by issuers of certain obligations purchased by the
    Trust may be guaranteed by letters of credit or other credit
    facilities offered by banks or other financial institutions.
    Such guarantees will be considered in determining whether an
    obligation meets the Trust&#146;s investment quality
    requirements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>When-Issued and Delayed Delivery
    Securities</U>.</I>&#160;&#160;From time to time, the Trust may
    purchase securities on a when-issued or delayed delivery basis.
    When these transactions are negotiated, the price is fixed at
    the time of the commitment, but delivery and payment can take
    place a month or more after the date of commitment. The Trust
    may sell the securities before the settlement date, if it is
    deemed advisable. The securities so purchased or sold are
    subject to market fluctuation and no interest or dividends
    accrue to the purchaser prior to the settlement date. At the
    time the Trust makes the commitment to purchase or sell
    securities on a when-issued or delayed delivery basis, it will
    record the transaction and thereafter reflect the value, each
    day, of such security purchased, or if a sale, the proceeds to
    be received, in determining its net asset value. At the time of
    delivery of the securities, their value may be more or less than
    the purchase or sale price. An increase in the percentage of the
    Trust&#146;s assets committed to the purchase of securities on a
    when-issued or delayed delivery basis may increase the
    volatility of its net asset value. The Trust will also establish
    a segregated account on the Trust&#146;s books in which it will
    continually maintain cash or cash equivalents or other liquid
    portfolio securities equal in value to commitments to purchase
    securities on a when-issued or delayed delivery basis.
</DIV>

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    <BR>
    B-1
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<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center" style="font-size: 14pt; margin-top: 18pt"><B>EVERY SHAREHOLDER&#146;S VOTE IS IMPORTANT</B>
</DIV>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>Your Proxy Vote is important!</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>And now you can Vote your Proxy on the </B><B><I>PHONE </I></B><B>or the </B><B><I>INTERNET</I></B><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>It saves Money! Telephone and Internet voting saves postage costs. Savings which can help minimize
fund expenses.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>It saves Time! Telephone and Internet voting is instantaneous &#151; 24 hours a day.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>It&#146;s Easy! Just follow these simple steps:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>1.
Read your proxy statement and have it at hand.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>2.
Call toll-free </B><B><I>1-866-241-6192 or go to website: www.proxy-direct.com</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>3.
Enter the 14-digit number located in the shaded box from your Proxy Card.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>4.
Follow the recorded or on-screen directions.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>5.
Do </B><U><B><I>not</I></B></U><B> mail your Proxy Card when you vote by phone or Internet.</B>
</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Please detach at perforation before mailing.
</DIV>

<DIV align="center" style="margin-top: 18pt">
<TABLE style="font-size: 9pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>PROXY</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>MORGAN STANLEY CALIFORNIA INSURED MUNICIPAL INCOME TRUST</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>PROXY</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>JOINT SPECIAL MEETINGS OF SHAREHOLDERS</B></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>TO BE HELD NOVEMBER 14, 2008</B></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">The undersigned hereby appoints Stefanie V. Chang Yu, Amy R. Doberman and Mary E. Mullin, and
each of them or their respective designees, with full power of substitution and revocation, as
proxies to represent the undersigned at the Special Meeting of Shareholders to be held at the
offices of Morgan Stanley Investment Advisors Inc., 522 Fifth Avenue, New York, New York 10036 on
November&nbsp;14, 2008 at 8:30 a.m., New York City time, and at any and all adjournments thereof (the
&#147;Meeting&#148;), to vote all Shares of Morgan Stanley California Insured Municipal Income Trust (the
&#147;Trust&#148;), which the undersigned would be entitled to vote, with all powers the undersigned would
possess if personally present, in accordance with the instructions indicated herein. <B>This proxy is
solicited on behalf of the Board of Trustees.</B>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">This Proxy Card when properly executed will be voted in accordance with the instructions marked by
the undersigned on the reverse side. <B>If no specification is made, this proxy will be voted &#147;FOR&#148;
all of the proposals listed herein and in the discretion of the proxies upon such other business
as may properly come before the Meeting.</B>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt"><B>Please vote, date and sign on the reverse side and return promptly in the enclosed envelope. Your
signature and return of this proxy card acknowledges receipt of the accompanying Notice of Special
Meeting and Proxy Statement for the Meeting to be held on November&nbsp;14, 2008.</B>
</DIV>

<P><DIV style="position: relative; float: left; width: 55%">
</DIV>
<DIV style="position: relative; float: right; width: 44%">

<DIV align="left" style="font-size: 9pt; margin-top: 6pt"><B>VOTE VIA THE INTERNET: www.proxy-direct.com</B><BR><B>
VOTE VIA THE TELEPHONE: 1-866-241-6192</B>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD width="1%" style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD style="border-right: 1px solid #000000; border-top: 0px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD width="1%" style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="3" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 8pt; margin-top: 6pt"><B>Note</B>: Please sign exactly as your name appears on this proxy card. All joint owners should
sign. When signing as executor, administrator, attorney, trustee or guardian or as custodian for a
minor, please give full title as such. If a corporation, please sign in full corporate name and
indicate the signer&#146;s office. If a partner, sign in the partnership name.
</DIV>
<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Signature</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Signature (if held jointly)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">19401A092608</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<BR clear="all"><BR>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center" style="font-size: 14pt; margin-top: 6pt"><B>EVERY SHAREHOLDER&#146;S VOTE IS IMPORTANT</B>
</DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 250pt"><B>PLEASE SIGN, DATE AND RETURN YOUR<BR>
PROXY TODAY</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 80pt">Please detach at perforation before mailing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt"><B>TO VOTE BY MAIL, PLEASE COMPLETE AND RETURN THIS CARD. YOU ALSO MAY VOTE A PROXY BY TOUCH-TONE
PHONE OR BY INTERNET (See enclosed Voting Information Card for further instructions). PLEASE MARK
VOTES AS IN THIS EXAMPLE: &#9608;</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="54%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">FOR
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">AGAINST
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">ABSTAIN</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">1.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">To approve a modification to the Trust&#146;s investment policies to enable the Trust, under
normal market conditions, to invest at least 80% of its net assets in Municipal Obligations
which are covered by insurance guaranteeing the timely payment of principal and interest
thereon and that are rated at least &#147;A&#148; by a nationally recognized statistical rating
organization (&#147;NRSRO&#148;) or are unrated but judged to be of similar credit quality by Morgan
Stanley Investment Advisors Inc., the Trust&#146;s Investment Adviser, or covered by insurance
issued by insurers rated at least &#147;A&#148; by a NRSRO. The foregoing ratings apply at the time
of purchase.</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top">2.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">To approve a modification to the Trust&#146;s investment policies relating to the portion of the
Trust&#146;s net assets not invested in accordance with the Trust&#146;s 80% investment policy.</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top">3.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">To approve the elimination of certain fundamental investment restrictions regarding:</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.a.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Pledging Assets Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.b.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Margin Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.c.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Oil &#038; Gas Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.d.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exercising Control Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.e.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Unseasoned Companies Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.f.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director/Officer Ownership Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.g.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Common Stock Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.h.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Limitation on Investments in Taxable Debt Securities.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="center">Not applicable<BR></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.i.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Puts/Calls Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.j.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Short Sales Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.k.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Policy Prohibiting Investments in Other Investment Companies.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top">4.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">To approve the modification of certain fundamental investment policies and restrictions:</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.a.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Diversification Policy.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="center">Not applicable<BR></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.b.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Borrowing Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.c.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Loan Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.d.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Commodities Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.e.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Senior Securities Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 11pt; margin-top: 18pt"><B>WE URGE YOU TO SIGN, DATE AND MAIL THE ENCLOSED PROXY PROMPTLY</B>
</DIV>

<DIV align="center" style="font-size: 8pt; margin-top: 0pt">19041_A092608
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center" style="font-size: 14pt; margin-top: 18pt"><B>EVERY SHAREHOLDER&#146;S VOTE IS IMPORTANT</B>
</DIV>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>Your Proxy Vote is important!</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>And now you can Vote your Proxy on the </B><B><I>PHONE </I></B><B>or the </B><B><I>INTERNET</I></B><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>It saves Money! Telephone and Internet voting saves postage costs. Savings which can help minimize
fund expenses.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>It saves Time! Telephone and Internet voting is instantaneous &#151; 24 hours a day.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>It&#146;s Easy! Just follow these simple steps:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>1. Read your proxy statement and have it at hand.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>2. Call toll-free </B><B><I>1-866-241-6192 or go to website: www.proxy-direct.com</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>3. Enter the 14-digit number located in the shaded box from your Proxy Card.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>4. Follow the recorded or on-screen directions.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>5. Do </B><U><B><I>not</I></B></U> <B>mail your Proxy Card when you vote by phone or Internet.</B>
</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Please detach at perforation before mailing.
</DIV>

<DIV align="center" style="margin-top: 18pt">
<TABLE style="font-size: 9pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>PROXY</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>MORGAN STANLEY INSURED CALIFORNIA MUNICIPAL SECURITIES</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>PROXY</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>JOINT SPECIAL MEETINGS OF SHAREHOLDERS</B></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>TO BE HELD NOVEMBER 14, 2008</B></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">The undersigned hereby appoints Stefanie V. Chang Yu, Amy R. Doberman and Mary E. Mullin, and
each of them or their respective designees, with full power of substitution and revocation, as
proxies to represent the undersigned at the Special Meeting of Shareholders to be held at the
offices of Morgan Stanley Investment Advisors Inc., 522 Fifth Avenue, New York, New York 10036 on
November&nbsp;14, 2008 at 8:30 a.m., New York City time, and at any and all adjournments thereof (the
&#147;Meeting&#148;), to vote all Shares of Morgan Stanley Insured California Municipal Securities (the
&#147;Trust&#148;), which the undersigned would be entitled to vote, with all powers the undersigned would
possess if personally present, in accordance with the instructions indicated herein. <B>This proxy is
solicited on behalf of the Board of Trustees.</B>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">This Proxy Card when properly executed will be voted in accordance with the instructions marked by
the undersigned on the reverse side. <B>If no specification is made, this proxy will be voted &#147;FOR&#148;
all of the proposals listed herein and in the discretion of the proxies upon such other business
as may properly come before the Meeting.</B>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt"><B>Please vote, date and sign on the reverse side and return promptly in the enclosed envelope. Your
signature and return of this proxy card acknowledges receipt of the accompanying Notice of Special
Meeting and Proxy Statement for the Meeting to be held on November&nbsp;14, 2008.</B>
</DIV>

<P><DIV style="position: relative; float: left; width: 55%">
</DIV>
<DIV style="position: relative; float: right; width: 44%">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>VOTE VIA THE INTERNET: www.proxy-direct.com</B><BR><B>
VOTE VIA THE TELEPHONE: 1-866-241-6192</B>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD width="1%" style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD style="border-right: 1px solid #000000; border-top: 0px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD width="1%" style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="3" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 8pt; margin-top: 6pt"><B>Note</B>: Please sign exactly as your name appears on this proxy card. All joint owners should
sign. When signing as executor, administrator, attorney, trustee or guardian or as custodian for a
minor, please give full title as such. If a corporation, please sign in full corporate name and
indicate the signer&#146;s office. If a partner, sign in the partnership name.
</DIV>

<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Signature</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Signature (if held jointly)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">19041_B092608</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<BR clear="all"><BR>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center" style="font-size: 14pt; margin-top: 6pt"><B>EVERY SHAREHOLDER&#146;S VOTE IS IMPORTANT</B>
</DIV>


<DIV align="center" style="font-size: 14pt; margin-top: 250pt"><B>PLEASE SIGN, DATE AND RETURN YOUR<BR>
PROXY TODAY</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 80pt">Please detach at perforation before mailing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 24pt"><B>TO VOTE BY MAIL, PLEASE COMPLETE AND RETURN THIS CARD. YOU ALSO MAY VOTE A PROXY BY TOUCH-TONE
PHONE OR BY INTERNET (See enclosed Voting Information Card for further instructions). PLEASE MARK
VOTES AS IN THIS EXAMPLE: &#9608;</B>
</DIV>
<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="54%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">FOR
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">AGAINST
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">ABSTAIN</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">1.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">To approve a modification to the Trust&#146;s investment policies to enable the Trust, under
normal market conditions, to invest at least 80% of its net assets in Municipal Obligations
which are covered by insurance guaranteeing the timely payment of principal and interest
thereon and that are rated at least &#147;A&#148; by a nationally recognized statistical rating
organization (&#147;NRSRO&#148;) or are unrated but judged to be of similar credit quality by Morgan
Stanley Investment Advisors Inc., the Trust&#146;s Investment Adviser, or covered by insurance
issued by insurers rated at least &#147;A&#148; by a NRSRO. The foregoing ratings apply at the time
of purchase.</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top">2.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">To approve a modification to the Trust&#146;s investment policies relating to the portion of the
Trust&#146;s net assets not invested in accordance with the Trust&#146;s 80% investment policy.</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top">3.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">To approve the elimination of certain fundamental investment restrictions regarding:</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.a.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Pledging Assets Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.b.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Margin Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.c.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Oil &#038; Gas Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.d.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exercising Control Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.e.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Unseasoned Companies Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.f.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director/Officer Ownership Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.g.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Common Stock Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.h.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Limitation on Investments in Taxable Debt Securities.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="center">Not applicable<BR></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.i.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Puts/Calls Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.j.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Short Sales Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.k.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Policy Prohibiting Investments in Other Investment Companies.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top">4.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">To approve the modification of certain fundamental investment policies and restrictions:</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.a.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Diversification Policy.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="center">Not applicable<BR></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.b.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Borrowing Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.c.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Loan Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.d.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Commodities Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.e.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Senior Securities Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 11pt; margin-top: 18pt"><B>WE URGE YOU TO SIGN, DATE AND MAIL THE ENCLOSED PROXY PROMPTLY</B>
</DIV>


<DIV align="center" style="font-size: 8pt; margin-top: 0pt">19041_B092608
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center" style="font-size: 14pt; margin-top: 18pt"><B>EVERY SHAREHOLDER&#146;S VOTE IS IMPORTANT</B>
</DIV>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>Your Proxy Vote is important!</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>And now you can Vote your Proxy on the </B><B><I>PHONE </I></B><B>or the </B><B><I>INTERNET</I></B><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>It saves Money! Telephone and Internet voting saves postage costs. Savings which can help minimize
fund expenses.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>It saves Time! Telephone and Internet voting is instantaneous &#151; 24 hours a day.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>It&#146;s Easy! Just follow these simple steps:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>1. Read your proxy statement and have it at hand.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>2. Call toll-free </B><B><I>1-866-241-6192 or go to website: www.proxy-direct.com</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>3. Enter the 14-digit number located in the shaded box from your Proxy Card.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>4. Follow the recorded or on-screen directions.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>5. Do </B><U><B><I>not</I></B></U> <B>mail your Proxy Card when you vote by phone or Internet.</B>
</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Please detach at perforation before mailing.
</DIV>

<DIV align="center" style="margin-top: 18pt">
<TABLE style="font-size: 9pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>PROXY</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>MORGAN STANLEY INSURED MUNICIPAL BOND TRUST</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>PROXY</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>JOINT SPECIAL MEETINGS OF SHAREHOLDERS</B></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>TO BE HELD NOVEMBER 14, 2008</B></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 9pt; margin-top: 6pt">The undersigned hereby appoints Stefanie V. Chang Yu, Amy R. Doberman and Mary E. Mullin, and
each of them or their respective designees, with full power of substitution and revocation, as
proxies to represent the undersigned at the Special Meeting of Shareholders to be held at the
offices of Morgan Stanley Investment Advisors Inc., 522 Fifth Avenue, New York, New York 10036 on
November&nbsp;14, 2008 at 8:30 a.m., New York City time, and at any and all adjournments thereof (the
&#147;Meeting&#148;), to vote all Shares of Morgan Stanley Insured Municipal Bond Trust (the &#147;Trust&#148;), which
the undersigned would be entitled to vote, with all powers the undersigned would possess if
personally present, in accordance with the instructions indicated herein. <B>This proxy is solicited
on behalf of the Board of Trustees.</B>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">This Proxy Card when properly executed will be voted in accordance with the instructions marked by
the undersigned on the reverse side. <B>If no specification is made, this proxy will be voted &#147;FOR&#148;
all of the proposals listed herein and in the discretion of the proxies upon such other business
as may properly come before the Meeting.</B>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt"><B>Please vote, date and sign on the reverse side and return promptly in the enclosed envelope. Your
signature and return of this proxy card acknowledges receipt of the accompanying Notice of Special
Meeting and Proxy Statement for the Meeting to be held on November&nbsp;14, 2008.</B>
</DIV>
<P><DIV style="position: relative; float: left; width: 55%">
</DIV>
<DIV style="position: relative; float: right; width: 44%">

<DIV align="left" style="font-size: 9pt; margin-top: 6pt"><B>VOTE VIA THE INTERNET: www.proxy-direct.com</B><BR><B>
VOTE VIA THE TELEPHONE: 1-866-241-6192</B>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD width="1%" style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD style="border-right: 1px solid #000000; border-top: 0px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD width="1%" style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="3" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 8pt; margin-top: 6pt"><B>Note</B>: Please sign exactly as your name appears on this proxy card. All joint owners should
sign. When signing as executor, administrator, attorney, trustee or guardian or as custodian for a
minor, please give full title as such. If a corporation, please sign in full corporate name and
indicate the signer&#146;s office. If a partner, sign in the partnership name.
</DIV>
<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Signature</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Signature (if held jointly)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">19401_C092608</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<BR clear="all"><BR>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center" style="font-size: 14pt; margin-top: 6pt"><B>EVERY SHAREHOLDER&#146;S VOTE IS IMPORTANT</B>
</DIV>


<DIV align="center" style="font-size: 14pt; margin-top: 250pt"><B>PLEASE SIGN, DATE AND RETURN YOUR<BR>
PROXY TODAY</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 80pt">Please detach at perforation before mailing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 24pt"><B>TO VOTE BY MAIL, PLEASE COMPLETE AND RETURN THIS CARD. YOU ALSO MAY VOTE A PROXY BY TOUCH-TONE
PHONE OR BY INTERNET (See enclosed Voting Information Card for further instructions). PLEASE MARK
VOTES AS IN THIS EXAMPLE: &#9608;</B>
</DIV>
<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="54%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">FOR
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">AGAINST
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">ABSTAIN</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">1.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">To approve a modification to the Trust&#146;s investment policies to enable the Trust, under
normal market conditions, to invest at least 80% of its net assets in Municipal Obligations
which are covered by insurance guaranteeing the timely payment of principal and interest
thereon and that are rated at least &#147;A&#148; by a nationally recognized statistical rating
organization (&#147;NRSRO&#148;) or are unrated but judged to be of similar credit quality by Morgan
Stanley Investment Advisors Inc., the Trust&#146;s Investment Adviser, or covered by insurance
issued by insurers rated at least &#147;A&#148; by a NRSRO. The foregoing ratings apply at the time
of purchase.</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top">2.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">To approve a modification to the Trust&#146;s investment policies relating to the portion of the
Trust&#146;s net assets not invested in accordance with the Trust&#146;s 80% investment policy.</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top">3.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">To approve the elimination of certain fundamental investment restrictions regarding:</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.a.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Pledging Assets Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.b.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Margin Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.c.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Oil &#038; Gas Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.d.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exercising Control Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.e.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Unseasoned Companies Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.f.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director/Officer Ownership Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.g.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Common Stock Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.h.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Limitation on Investments in Taxable Debt Securities.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.i.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Puts/Calls Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.j.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Short Sales Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.k.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Policy Prohibiting Investments in Other Investment Companies.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top">4.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">To approve the modification of certain fundamental investment policies and restrictions:</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.a.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Diversification Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.b.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Borrowing Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.c.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Loan Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.d.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Commodities Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.e.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Senior Securities Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 11pt; margin-top: 18pt"><B>WE URGE YOU TO SIGN, DATE AND MAIL THE ENCLOSED PROXY PROMPTLY</B>
</DIV>


<DIV align="center" style="font-size: 8pt; margin-top: 0pt">19401_C092608
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center" style="font-size: 14pt; margin-top: 18pt"><B>EVERY SHAREHOLDER&#146;S VOTE IS IMPORTANT</B>
</DIV>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>Your Proxy Vote is important!</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>And now you can Vote your Proxy on the </B><B><I>PHONE </I></B><B>or the </B><B><I>INTERNET</I></B><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>It saves Money! Telephone and Internet voting saves postage costs. Savings which can help minimize
fund expenses.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>It saves Time! Telephone and Internet voting is instantaneous &#151; 24 hours a day.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>It&#146;s Easy! Just follow these simple steps:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>1. Read your proxy statement and have it at hand.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>2. Call toll-free </B><B><I>1-866-241-6192 or go to website: www.proxy-direct.com</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>3. Enter the 14-digit number located in the shaded box from your Proxy Card.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>4. Follow the recorded or on-screen directions.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>5. Do </B><U><B><I>not</I></B></U> <B>mail your Proxy Card when you vote by phone or Internet.</B>
</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Please detach at perforation before mailing.
</DIV>

<DIV align="center" style="margin-top: 18pt">
<TABLE style="font-size: 9pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>PROXY</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>MORGAN STANLEY INSURED MUNICIPAL INCOME TRUST</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>PROXY</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>JOINT SPECIAL MEETINGS OF SHAREHOLDERS</B></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>TO BE HELD NOVEMBER 14, 2008</B></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">The undersigned hereby appoints Stefanie V. Chang Yu, Amy R. Doberman and Mary E. Mullin, and
each of them or their respective designees, with full power of substitution and revocation, as
proxies to represent the undersigned at the Special Meeting of Shareholders to be held at the
offices of Morgan Stanley Investment Advisors Inc., 522 Fifth Avenue, New York, New York 10036 on
November&nbsp;14, 2008 at 8:30 a.m., New York City time, and at any and all adjournments thereof (the
&#147;Meeting&#148;), to vote all Shares of Morgan Stanley Insured Municipal Income Trust (the &#147;Trust&#148;),
which the undersigned would be entitled to vote, with all powers the undersigned would possess if
personally present, in accordance with the instructions indicated herein. <B>This proxy is solicited
on behalf of the Board of Trustees.</B>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">This Proxy Card when properly executed will be voted in accordance with the instructions marked by
the undersigned on the reverse side. <B>If no specification is made, this proxy will be voted &#147;FOR&#148;
all of the proposals listed herein and in the discretion of the proxies upon such other business
as may properly come before the Meeting.</B>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt"><B>Please vote, date and sign on the reverse side and return promptly in the enclosed envelope. Your
signature and return of this proxy card acknowledges receipt of the accompanying Notice of Special
Meeting and Proxy Statement for the Meeting to be held on November&nbsp;14, 2008.</B>
</DIV>

<P><DIV style="position: relative; float: left; width: 55%">
</DIV>
<DIV style="position: relative; float: right; width: 44%">

<DIV align="left" style="font-size: 9pt; margin-top: 6pt"><B>VOTE VIA THE INTERNET: www.proxy-direct.com</B><BR><B>
VOTE VIA THE TELEPHONE: 1-866-241-6192</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD width="1%" style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD style="border-right: 1px solid #000000; border-top: 0px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD width="1%" style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="3" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 8pt; margin-top: 6pt"><B>Note</B>: Please sign exactly as your name appears on this proxy card. All joint owners should
sign. When signing as executor, administrator, attorney, trustee or guardian or as custodian for a
minor, please give full title as such. If a corporation, please sign in full corporate name and
indicate the signer&#146;s office. If a partner, sign in the partnership name.
</DIV>
<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Signature</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Signature (if held jointly)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">19401_D092608</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<BR clear="all"><BR>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center" style="font-size: 14pt; margin-top: 6pt"><B>EVERY SHAREHOLDER&#146;S VOTE IS IMPORTANT</B>
</DIV>


<DIV align="center" style="font-size: 14pt; margin-top: 250pt"><B>PLEASE SIGN, DATE AND RETURN YOUR<BR>
PROXY TODAY</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 80pt">Please detach at perforation before mailing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 24pt"><B>TO VOTE BY MAIL, PLEASE COMPLETE AND RETURN THIS CARD. YOU ALSO MAY VOTE A PROXY BY TOUCH-TONE
PHONE OR BY INTERNET (See enclosed Voting Information Card for further instructions). PLEASE MARK
VOTES AS IN THIS EXAMPLE: &#9608;</B>
</DIV>
<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="54%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">FOR
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">AGAINST
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">ABSTAIN</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">1.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">To approve a modification to the Trust&#146;s investment policies to enable the Trust, under
normal market conditions, to invest at least 80% of its net assets in Municipal Obligations
which are covered by insurance guaranteeing the timely payment of principal and interest
thereon and that are rated at least &#147;A&#148; by a nationally recognized statistical rating
organization (&#147;NRSRO&#148;) or are unrated but judged to be of similar credit quality by Morgan
Stanley Investment Advisors Inc., the Trust&#146;s Investment Adviser, or covered by insurance
issued by insurers rated at least &#147;A&#148; by a NRSRO. The foregoing ratings apply at the time
of purchase.</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top">2.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">To approve a modification to the Trust&#146;s investment policies relating to the portion of the
Trust&#146;s net assets not invested in accordance with the Trust&#146;s 80% investment policy.</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top">3.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">To approve the elimination of certain fundamental investment restrictions regarding:</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.a.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Pledging Assets Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.b.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Margin Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.c.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Oil &#038; Gas Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.d.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exercising Control Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.e.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Unseasoned Companies Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.f.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director/Officer Ownership Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.g.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Common Stock Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.h.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Limitation on Investments in Taxable Debt Securities.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.i.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Puts/Calls Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.j.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Short Sales Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.k.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Policy Prohibiting Investments in Other Investment Companies.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top">4.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">To approve the modification of certain fundamental investment policies and restrictions:</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.a.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Diversification Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.b.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Borrowing Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.c.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Loan Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.d.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Commodities Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.e.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Senior Securities Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 11pt; margin-top: 18pt"><B>WE URGE YOU TO SIGN, DATE AND MAIL THE ENCLOSED PROXY PROMPTLY</B>
</DIV>


<DIV align="center" style="font-size: 8pt; margin-top: 0pt">19401_D092608
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center" style="font-size: 14pt; margin-top: 18pt"><B>EVERY SHAREHOLDER&#146;S VOTE IS IMPORTANT</B>
</DIV>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>Your Proxy Vote is important!</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>And now you can Vote your Proxy on the </B><B><I>PHONE </I></B><B>or the </B><B><I>INTERNET</I></B><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>It saves Money! Telephone and Internet voting saves postage costs. Savings which can help minimize
fund expenses.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>It saves Time! Telephone and Internet voting is instantaneous &#151; 24 hours a day.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>It&#146;s Easy! Just follow these simple steps:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>1. Read your proxy statement and have it at hand.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>2. Call toll-free </B><B><I>1-866-241-6192 or go to website: www.proxy-direct.com</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>3. Enter the 14-digit number located in the shaded box from your Proxy Card.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>4. Follow the recorded or on-screen directions.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>5. Do </B><U><B><I>not</I></B></U> <B>mail your Proxy Card when you vote by phone or Internet.</B>
</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Please detach at perforation before mailing.
</DIV>

<DIV align="center" style="margin-top: 18pt">
<TABLE style="font-size: 9pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>PROXY</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>THE MORGAN STANLEY INSURED MUNICIPAL SECURITIES</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>PROXY</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>JOINT SPECIAL MEETINGS OF SHAREHOLDERS</B></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>TO BE HELD NOVEMBER 14, 2008</B></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 9pt; margin-top: 6pt">The undersigned hereby appoints Stefanie V. Chang Yu, Amy R. Doberman and Mary E. Mullin, and
each of them or their respective designees, with full power of substitution and revocation, as
proxies to represent the undersigned at the Special Meeting of Shareholders to be held at the
offices of Morgan Stanley Investment Advisors Inc., 522 Fifth Avenue, New York, New York 10036 on
November&nbsp;14, 2008 at 8:30 a.m., New York City time, and at any and all adjournments thereof (the
&#147;Meeting&#148;), to vote all Shares of Morgan Stanley Insured Municipal Securities (the &#147;Trust&#148;),
which the undersigned would be entitled to vote, with all powers the undersigned would possess if
personally present, in accordance with the instructions indicated herein. <B>This proxy is solicited
on behalf of the Board of Trustees.</B>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">This Proxy Card when properly executed will be voted in accordance with the instructions marked by
the undersigned on the reverse side. <B>If no specification is made, this proxy will be voted &#147;FOR&#148;
all of the proposals listed herein and in the discretion of the proxies upon such other business
as may properly come before the Meeting.</B>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt"><B>Please vote, date and sign on the reverse side and return promptly in the enclosed envelope. Your
signature and return of this proxy card acknowledges receipt of the accompanying Notice of Special
Meeting and Proxy Statement for the Meeting to be held on November&nbsp;14, 2008.</B>
</DIV>

<P><DIV style="position: relative; float: left; width: 55%">
</DIV>
<DIV style="position: relative; float: right; width: 44%">

<DIV align="left" style="font-size: 9pt; margin-top: 6pt"><B>VOTE VIA THE INTERNET: www.proxy-direct.com</B><BR><B>
VOTE VIA THE TELEPHONE: 1-866-241-6192</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD width="1%" style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD style="border-right: 1px solid #000000; border-top: 0px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD width="1%" style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="3" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 8pt; margin-top: 6pt"><B>Note</B>: Please sign exactly as your name appears on this proxy card. All joint owners should
sign. When signing as executor, administrator, attorney, trustee or guardian or as custodian for a
minor, please give full title as such. If a corporation, please sign in full corporate name and
indicate the signer&#146;s office. If a partner, sign in the partnership name.
</DIV>
<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Signature</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Signature (if held jointly)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">19401_E092608</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<BR clear="all"><BR>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center" style="font-size: 14pt; margin-top: 6pt"><B>EVERY SHAREHOLDER&#146;S VOTE IS IMPORTANT</B>
</DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 250pt"><B>PLEASE SIGN, DATE AND RETURN YOUR<BR>
PROXY TODAY</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 80pt">Please detach at perforation before mailing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt"><B>TO VOTE BY MAIL, PLEASE COMPLETE AND RETURN THIS CARD. YOU ALSO MAY VOTE A PROXY BY TOUCH-TONE
PHONE OR BY INTERNET (See enclosed Voting Information Card for further instructions). PLEASE MARK
VOTES AS IN THIS EXAMPLE: &#9608;</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="54%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">FOR
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">AGAINST
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">ABSTAIN</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">1.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">To approve a modification to the Trust&#146;s investment policies to enable the Trust, under
normal market conditions, to invest at least 80% of its net assets in Municipal Obligations
which are covered by insurance guaranteeing the timely payment of principal and interest
thereon and that are rated at least &#147;A&#148; by a nationally recognized statistical rating
organization (&#147;NRSRO&#148;) or are unrated but judged to be of similar credit quality by Morgan
Stanley Investment Advisors Inc., the Trust&#146;s Investment Adviser, or covered by insurance
issued by insurers rated at least &#147;A&#148; by a NRSRO. The foregoing ratings apply at the time
of purchase.</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top">2.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">To approve a modification to the Trust&#146;s investment policies relating to the portion of the
Trust&#146;s net assets not invested in accordance with the Trust&#146;s 80% investment policy.</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top">3.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">To approve the elimination of certain fundamental investment restrictions regarding:</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.a.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Pledging Assets Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.b.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Margin Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.c.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Oil &#038; Gas Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.d.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exercising Control Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.e.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Unseasoned Companies Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.f.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director/Officer Ownership Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.g.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Common Stock Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.h.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Limitation on Investments in Taxable Debt Securities.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.i.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Puts/Calls Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.j.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Short Sales Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.k.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Policy Prohibiting Investments in Other Investment Companies.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top">4.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">To approve the modification of certain fundamental investment policies and restrictions:</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.a.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Diversification Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.b.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Borrowing Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.c.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Loan Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.d.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Commodities Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.e.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Senior Securities Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 11pt; margin-top: 18pt"><B>WE URGE YOU TO SIGN, DATE AND MAIL THE ENCLOSED PROXY PROMPTLY</B>
</DIV>


<DIV align="center" style="font-size: 8pt; margin-top: 0pt">19401_E092608
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center" style="font-size: 14pt; margin-top: 18pt"><B>EVERY SHAREHOLDER&#146;S VOTE IS IMPORTANT</B>
</DIV>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>Your Proxy Vote is important!</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>And now you can Vote your Proxy on the </B><B><I>PHONE </I></B><B>or the </B><B><I>INTERNET</I></B><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>It saves Money! Telephone and Internet voting saves postage costs. Savings which can help minimize
fund expenses.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>It saves Time! Telephone and Internet voting is instantaneous &#151; 24 hours a day.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>It&#146;s Easy! Just follow these simple steps:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>1. Read your proxy statement and have it at hand.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>2. Call toll-free </B><B><I>1-866-241-6192 or go to website: www.proxy-direct.com</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>3. Enter the 14-digit number located in the shaded box from your Proxy Card.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>4. Follow the recorded or on-screen directions.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>5. Do </B><U><B><I>not</I></B></U> <B>mail your Proxy Card when you vote by phone or Internet.</B>
</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Please detach at perforation before mailing.
</DIV>

<DIV align="center" style="margin-top: 18pt">
<TABLE style="font-size: 9pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>PROXY</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>MORGAN STANLEY INSURED MUNICIPAL TRUST</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>PROXY</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>JOINT SPECIAL MEETINGS OF SHAREHOLDERS</B></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>TO BE HELD NOVEMBER 14, 2008</B></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">The undersigned hereby appoints Stefanie V. Chang Yu, Amy R. Doberman and Mary E. Mullin, and
each of them or their respective designees, with full power of substitution and revocation, as
proxies to represent the undersigned at the Special Meeting of Shareholders to be held at the
offices of Morgan Stanley Investment Advisors Inc., 522 Fifth Avenue, New York, New York 10036 on
November&nbsp;14, 2008 at 8:30 a.m., New York City time, and at any and all adjournments thereof (the
&#147;Meeting&#148;), to vote all Shares of Morgan Stanley Insured Municipal Trust (the &#147;Trust&#148;), which the
undersigned would be entitled to vote, with all powers the undersigned would possess if personally
present, in accordance with the instructions indicated herein. <B>This proxy is solicited on behalf
of the Board of Trustees.</B>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">This Proxy Card when properly executed will be voted in accordance with the instructions marked by
the undersigned on the reverse side. <B>If no specification is made, this proxy will be voted &#147;FOR&#148;
all of the proposals listed herein and in the discretion of the proxies upon such other business
as may properly come before the Meeting.</B>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt"><B>Please vote, date and sign on the reverse side and return promptly in the enclosed envelope. Your
signature and return of this proxy card acknowledges receipt of the accompanying Notice of Special
Meeting and Proxy Statement for the Meeting to be held on November&nbsp;14, 2008.</B>
</DIV>

<P><DIV style="position: relative; float: left; width: 55%">
</DIV>
<DIV style="position: relative; float: right; width: 44%">

<DIV align="left" style="font-size: 9pt; margin-top: 6pt"><B>VOTE VIA THE INTERNET: www.proxy-direct.com</B><BR><B>
VOTE VIA THE TELEPHONE: 1-866-241-6192</B>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD width="1%" style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD style="border-right: 1px solid #000000; border-top: 0px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD width="1%" style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="3" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 8pt; margin-top: 6pt"><B>Note</B>: Please sign exactly as your name appears on this proxy card. All joint owners should
sign. When signing as executor, administrator, attorney, trustee or guardian or as custodian for a
minor, please give full title as such. If a corporation, please sign in full corporate name and
indicate the signer&#146;s office. If a partner, sign in the partnership name.
</DIV>
<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Signature</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Signature (if held jointly)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">19401_F092608</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<BR clear="all"><BR>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center" style="font-size: 14pt; margin-top: 6pt"><B>EVERY SHAREHOLDER&#146;S VOTE IS IMPORTANT</B>
</DIV>


<DIV align="center" style="font-size: 14pt; margin-top: 250pt"><B>PLEASE SIGN, DATE AND RETURN YOUR<BR>
PROXY TODAY</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 80pt">Please detach at perforation before mailing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 24pt"><B>TO VOTE BY MAIL, PLEASE COMPLETE AND RETURN THIS CARD. YOU ALSO MAY VOTE A PROXY BY TOUCH-TONE
PHONE OR BY INTERNET (See enclosed Voting Information Card for further instructions). PLEASE MARK
VOTES AS IN THIS EXAMPLE: &#9608;</B>
</DIV>
<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="54%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">FOR
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">AGAINST
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">ABSTAIN</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">1.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">To approve a modification to the Trust&#146;s investment policies to enable the Trust, under
normal market conditions, to invest at least 80% of its net assets in Municipal Obligations
which are covered by insurance guaranteeing the timely payment of principal and interest
thereon and that are rated at least &#147;A&#148; by a nationally recognized statistical rating
organization (&#147;NRSRO&#148;) or are unrated but judged to be of similar credit quality by Morgan
Stanley Investment Advisors Inc., the Trust&#146;s Investment Adviser, or covered by insurance
issued by insurers rated at least &#147;A&#148; by a NRSRO. The foregoing ratings apply at the time
of purchase.</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top">2.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">To approve a modification to the Trust&#146;s investment policies relating to the portion of the
Trust&#146;s net assets not invested in accordance with the Trust&#146;s 80% investment policy.</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top">3.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">To approve the elimination of certain fundamental investment restrictions regarding:</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.a.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Pledging Assets Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.b.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Margin Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.c.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Oil &#038; Gas Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.d.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exercising Control Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.e.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Unseasoned Companies Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.f.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director/Officer Ownership Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.g.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Common Stock Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.h.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Limitation on Investments in Taxable Debt Securities.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.i.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Puts/Calls Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.j.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Short Sales Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.k.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Policy Prohibiting Investments in Other Investment Companies.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top">4.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">To approve the modification of certain fundamental investment policies and restrictions:</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.a.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Diversification Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.b.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Borrowing Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.c.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Loan Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.d.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Commodities Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.e.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Senior Securities Policy.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
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<DIV align="center" style="font-size: 11pt; margin-top: 18pt"><B>WE URGE YOU TO SIGN, DATE AND MAIL THE ENCLOSED PROXY PROMPTLY</B>
</DIV>


<DIV align="center" style="font-size: 8pt; margin-top: 0pt">19401_F092608
</DIV>



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<TYPE>COVER
<SEQUENCE>2
<FILENAME>filename2.htm
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<TITLE>COVER</TITLE>
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#091;CLIFFORD CHANCE LETTERHEAD US LLP&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">October&nbsp;1, 2008
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Securities and Exchange Commission<BR>
100 F Street, NE<BR>
Washington, D.C. 20549
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">Re:</TD>
    <TD>&nbsp;</TD>
    <TD>Morgan Stanley California Insured Municipal Income Trust (File No.&nbsp;811-07344),<BR>
Morgan Stanley Insured California Municipal Securities (File No.&nbsp;811-07111),<BR>
Morgan Stanley Insured Municipal Bond Trust (File No.&nbsp;811-06053),<BR>
Morgan Stanley Insured Municipal Income Trust (File No.&nbsp;811-06590),<BR>
Morgan Stanley Insured Municipal Securities (File No.&nbsp;811-07109) and<BR>
Morgan Stanley Insured Municipal Trust (File No.&nbsp;811-06434)<BR>
(individually, a &#147;Trust&#148; and, collectively, the &#147;Trusts&#148;)</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dear Sir or Madam:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On behalf of the Trusts, we transmit for filing under the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, each as amended, a definitive copy of the following
documents:
</DIV>

<DIV style="margin-top: 6pt">
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a notice of meeting, proxy statement and form of proxy relating to a special meeting of
shareholders of the Trusts, in the form in which such material is to be furnished by the
management of the Trusts to the Trusts&#146; shareholders; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Schedule&nbsp;14A.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If you have any questions concerning the foregoing, please do not hesitate to contact me at (212)
878-4988.
</DIV>

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    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<TR>
    <TD colspan="3" align="left">&nbsp;<BR>Best Regards,<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
</TR><TR>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ Allison Harlow
&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR><TR>
    <TD colspan="3" align="left">Allison Harlow&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR>
</TABLE>

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