UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-06346
Morgan Stanley Quality Municipal Investment Trust
(Exact name of registrant as specified in charter)
1221 Avenue of the Americas, New York, New York 10020
(Address of principal executive offices) (Zip code)
Ronald E. Robison
1221 Avenue of the Americas, New York, New York 10020
(Name and address of agent for service)
Registrant's telephone number, including area code: 212-762-4000
Date of fiscal year end: October 31, 2003
Date of reporting period: April 30, 2003
Item 1. Report to Stockholders.
Morgan Stanley Quality Municipal Investment Trust
LETTER TO THE SHAREHOLDERS - APRIL 30, 2003
Dear Shareholder:
During the six-month period ended April 30, 2003, U.S. economic growth was
positive but disappointing. The pattern of the recovery remained uneven with
many indicators fluctuating between strength and weakness. The military conflict
in Iraq and the ongoing war against terrorism cast a shadow over the economy and
the financial markets. The sluggish economy and uncertain geopolitical outlook
generally favored bonds and led to lower interest rates throughout the period.
Consumer spending was the best-performing sector of the economy last year.
Mortgage refinancing and low auto loan rates helped keep Americans buying. By
year-end, a growing apprehension about Iraq began to dominate investor sentiment
and consumer confidence waned. The most noticeable impact of the evolving war
risk was a spike in oil prices that had a dampening effect similar to a tax
increase. Confidence was also shaken when unemployment reached an eight-year
high. To guard against further downside risks, the Federal Reserve Board lowered
the federal funds rate from 1.75 to 1.25 percent in early November. This marked
the first change by the central bank in almost a year. Early in 2003 the Bush
administration proposed several tax relief measures to bolster the economy.
Uncertainty prior to the invasion of Iraq slowed economic activity in March.
However, resolution of the conflict prompted the financial markets again to
focus on the economic recovery.
Municipal Market Conditions
The yield on the 30-year insured municipal bond index continued to trend lower
over the six-month period ended April 30, 2003. The yield declined from a high
of 5.10 percent in November 2002 to a low of 4.70 percent in April. Throughout
the period, the municipal yield curve was at or near its steepest level in 25
years. The pickup along the yield curve for extending maturities from one to 30
years was 350 basis points on April 30, 2003.
The ratio of municipal yields as a percentage of U.S. Treasury yields is used to
gauge the relative value of municipals. In October 2002 the ratio of 30-year
insured municipal bond yields to 30-year Treasuries moved above 100 percent,
remaining there through the first quarter of 2003. In April the ratio fell to 99
percent as the Treasury flight-to-quality rally subsided. This still-high ratio
indicated that municipals were relatively cheaper than Treasuries.
The President's tax proposals, which included elimination of taxation on
dividend income and acceleration of a reduction in tax brackets, affected the
municipal market. The tax-exempt bond
Morgan Stanley Quality Municipal Investment Trust
LETTER TO THE SHAREHOLDERS - APRIL 30, 2003 continued
market reacted to potential tax-reform risk by adjusting the relationship of
tax-exempt issues to taxables.
Long-term municipal volume, as reported in The Bond Buyer, increased to a record
$357 billion in 2002 as state and local governments took advantage of lower
interest rates to meet cash flow needs and refinance outstanding debt. In the
first four months of 2003, new-issue volume reached a record $113 billion, 21
percent above last year's level. We expect this pace to continue throughout the
year as budgetary problems force states and municipalities to borrow.
California's share of national volume increased to 19 percent. New York,
Florida, Texas and New Jersey, the next largest states in terms of issuance,
represented an additional 28 percent of the national total.
Performance
The net asset value (NAV) of Morgan Stanley Quality Municipal Investment Trust
(IQT) increased from $15.23 to $15.59 per share for the six months ended April
30, 2003. Based on this change plus the reinvestment of tax-free dividends
totaling $0.48 per share and a long-term capital gain distribution of $0.09 per
share, the Trust's total NAV return was 6.61 percent. IQT's price on the New
York Stock Exchange (NYSE) increased from $14.08 to $14.43 per share during the
same period. Based on this change plus the reinvestment of dividends and
distributions, IQT's total market value return was 6.74 percent. On April 30,
2003 IQT's market value price was at a 7.44 percent discount to its NAV.
Monthly dividends for the second quarter of 2003 declared in March were
unchanged at $0.080 per share. The dividend reflects the level of the Trust's
undistributed net investment income and projected earnings. The Trust's level of
undistributed net investment income was $0.157 per share on April 30, 2003,
versus $0.189 per share six months earlier. (Past performance is no guarantee of
future results.)
Portfolio Structure
The Trust's total net assets of $362 million, including outstanding Auction Rate
Preferred Shares (ARPS), were diversified among 12 long-term sectors and 62
credits. Issues in three essential service sectors: general obligation, water
and sewer, and transportation accounted for 53 percent of the long-term
portfolio. The five states with the largest holdings -- New York, Florida,
Texas, New Jersey and Illinois -- collectively represented 48 percent of total
investments.
Importantly, the Trust has avoided bonds secured by tobacco settlement payments.
Many states have issued bonds backed by their entitlement to revenues from the
Master Settlement Agreement
2
Morgan Stanley Quality Municipal Investment Trust
LETTER TO THE SHAREHOLDERS - APRIL 30, 2003 continued
with tobacco companies. A class action judgment against Philip Morris, a major
participant in the agreement, has created uncertainty about the company's
ability to meet its obligations.
At the end of April the portfolio's average maturity was 19 years. In the first
quarter of 2003 the Trust sold five and ten year U.S. Treasury futures to hedge
the portfolio against potential increases in interest rates. This action reduced
IQT's duration, a measure of sensitivity to interest rate changes, from 7.9 to
7.7 years. The accompanying charts provide current information on the
portfolio's credit ratings, maturity distribution and sector concentrations.
Optional redemption provisions by year of call and respective cost (book) yields
are also charted.
The Trust's procedure for reinvestment of all dividends and distributions on
common shares is through purchases in the open market. This method helps support
the market value of the Trust's shares. In addition, we would like to remind you
that the Trustees have approved a procedure whereby the Trust may, when
appropriate, purchase shares in the open market or in privately negotiated
transactions at a price not above market value or net asset value, which ever is
lower at the time of purchase. The Trust may also utilize procedures to reduce
or eliminate the amount of outstanding ARPS, including their purchase in the
open market or in privately negotiated transactions. During the six-month period
ended April 30, 2003 the Trust purchased and retired 216,200 shares of common
stock at a weighted average market discount of 7.85 percent.
The Impact of Leveraging
As discussed in previous reports, the total income available for distribution to
common shareholders includes incremental income provided by the Trust's
outstanding ARPS. ARPS dividends reflect prevailing short-term interest rates on
maturities normally ranging from one week to two years. Incremental income to
common shareholders depends on two factors. The first factor is the amount of
ARPS outstanding, while the second is the spread between the portfolio's cost
yield and ARPS expenses (ARPS auction rate and expenses). The greater the spread
and the amount of ARPS outstanding, the greater the amount of incremental income
available for distribution to common shareholders. The level of net investment
income available for distribution to common shareholders varies with the level
of short-term interest rates. ARPS leverage also increases the price volatility
of common shares and has the effect of extending portfolio duration.
Current earnings continued to benefit from lower short-term borrowing costs of
ARPS. During this six-month period, ARPS leverage contributed approximately
$0.10 per share to common share earnings applicable to common shareholders. IQT
has two ARPS series totaling
3
Morgan Stanley Quality Municipal Investment Trust
LETTER TO THE SHAREHOLDERS - APRIL 30, 2003 continued
$105 million and representing 29 percent of total net assets. Series A is
currently a two-year auction maturing in September 2004 yielding 1.90 percent.
The yield on IQT's weekly ARPS series ranged between 0.70 and 1.34 percent.
We appreciate your ongoing support of Morgan Stanley Quality Municipal
Investment Trust and look forward to continuing to serve your investment needs.
<Table>
Very truly yours,
/s/ CHARLES A. FIUMEFREDDO /s/ MITCHELL M. MERIN
Charles A. Fiumefreddo Mitchell M. Merin
Chairman of the Board President
</Table>
4
Morgan Stanley Quality Municipal Investment Trust
LETTER TO THE SHAREHOLDERS - APRIL 30, 2003 continued
[LARGEST SECTORS BAR CHART]
LARGEST SECTORS AS OF APRIL 30, 2003
(% OF LONG-TERM PORTFOLIO)
<Table>
Water & Sewer 21%
General Obligation 16%
Transportation 16%
Mortgage 11%
Electric 9%
Refunded 7%
IDR/PCR* 6%
</Table>
* INDUSTRIAL DEVELOPMENT/POLLUTION CONTROL REVENUE
PORTFOLIO STRUCTURE IS SUBJECT TO CHANGE.
[CREDIT RATINGS PIE CHART]
CREDIT RATINGS AS OF APRIL 30, 2003
(% OF LONG-TERM PORTFOLIO)
<Table>
Aaa or AAA 68%
Aa or AA 16%
A or A 15%
Baa or BBB 1%
</Table>
AS MEASURED BY MOODY'S INVESTORS SERVICE, INC. OR STANDARD & POOR'S CORP.
PORTFOLIO STRUCTURE IS SUBJECT TO CHANGE.
[DISTRIBUTION BY MATURITY BAR CHART]
DISTRIBUTION BY MATURITY
(% OF LONG-TERM PORTFOLIO)
<Table>
<Caption>
WEIGHTED AVERAGE
MATURITY: 19 YEARS
1-5 Years 1%
5-10 Years 11%
10-20 Years 46%
20-30 Years 40%
30+ Years 2%
</Table>
PORTFOLIO STRUCTURE IS SUBJECT TO CHANGE.
5
Morgan Stanley Quality Municipal Investment Trust
LETTER TO THE SHAREHOLDERS - APRIL 30, 2003 continued
[CALL AND COST (BOOK) YIELD STRUCTURE BAR CHART]
CALL AND COST (BOOK) YIELD STRUCTURE
(BASED ON LONG-TERM PORTFOLIO)
APRIL 30, 2003
<Table>
<Caption>
WEIGHTED AVERAGE
PERCENT CALLABLE CALL PROTECTION: 7 YEARS
2003 13.0%
2004 2.0%
2005 8.0%
2006 1.0%
2007 3.0%
2008 2.0%
2009 10.0%
2010 16.0%
2011 17.0%
2012 20.0%
2013+ 8.0%
</Table>
YEARS BONDS CALLABLE
<Table>
<Caption>
WEIGHTED AVERAGE
COST (BOOK) YIELD* BOOK YIELD: 5.6%
2003 6.9%
2004 5.6%
2005 6.1%
2006 6.6%
2007 6.1%
2008 5.6%
2009 5.8%
2010 5.5%
2011 5.2%
2012 5.2%
2013+ 4.2%
</Table>
* COST OR "BOOK" YIELD IS THE ANNUAL INCOME EARNED ON A PORTFOLIO INVESTMENT
BASED ON ITS ORIGINAL PURCHASE PRICE BEFORE TRUST OPERATING EXPENSES. FOR
EXAMPLE, THE TRUST IS EARNING A BOOK YIELD OF 6.9% ON 13% OF THE LONG-TERM
PORTFOLIO THAT IS CALLABLE IN 2003.
PORTFOLIO STRUCTURE IS SUBJECT TO CHANGE.
6
Morgan Stanley Quality Municipal Investment Trust
LETTER TO THE SHAREHOLDERS - APRIL 30, 2003 continued
Geographic Summary of Investments
Based on Market Value as a Percent of Total Investments
<Table>
Alabama................ 0.6%
Alaska................. 2.1
Arizona................ 1.5
California............. 3.1
Colorado............... 1.8
District of Columbia... 0.4
Connecticut............ 2.6
Florida................ 10.4
Georgia................ 6.5
Hawaii................. 4.9
Idaho.................. 0.3
Illinois............... 6.7
Indiana................ 1.0
Kentucky............... 3.5
Maryland............... 3.8
Massachusetts.......... 5.4
Michigan............... 1.0
Minnesota.............. 1.6
Nevada................. 0.9
New Hampshire.......... 0.3
New Jersey............. 7.8
New York............... 12.4
North Carolina......... 1.5%
Ohio................... 0.9
Oregon................. 2.8
Pennsylvania........... 0.7
South Carolina......... 3.0
Texas.................. 10.4
Utah................... 1.2
Washington............. 0.9
-----
Total.................. 100.0%
=====
</Table>
7
Morgan Stanley Quality Municipal Investment Trust
PORTFOLIO OF INVESTMENTS - APRIL 30, 2003 (UNAUDITED)
<Table>
<Caption>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------------------------------------------------------------------------------------------------------
Tax-Exempt Municipal Bonds (132.3%)
General Obligation (21.5%)
$ 5,000 North Slope Borough, Alaska, Ser 2000 B (MBIA)........... 0.00% 06/30/09 $ 4,086,150
5,000 California, Various Purpose Dtd 05/01/03 (WI)............ 5.00 02/01/24 5,019,550
Florida Board of Education, Capital Outlay
6,890 Refg Ser 2001 D........................................ 5.375 06/01/18 7,611,039
3,000 Refg 2002 Ser C (MBIA)................................. 5.00 06/01/20 3,185,430
10,000 Chicago School Reform Board, Illinois, Dedicated Tax Ser
1997 (Ambac)........................................... 5.75 12/01/27 11,054,100
7,000 New Jersey, 2001 Ser H++................................. 5.25 07/01/19 7,899,990
5,000 North Carolina, Public School Building Ser 1999.......... 4.60 04/01/17 5,249,250
1,175 Oregon, Veterans' Welfare Ser 75......................... 6.00 04/01/27 1,224,996
Pennsylvania,
1,000 First Ser 2003 RITES PA - 1112 A (MBIA)................ 8.402++ 01/01/18 1,150,660
1,000 First Ser 2003 RITES PA - 1112 B (MBIA)................ 8.402++ 01/01/19 1,135,800
5,000 Aldine Independent School District, Texas, Bldg & Refg
Ser 2001 (PSF)......................................... 5.00 02/15/26 5,096,550
2,500 Mission Consolidated Independent School District, Texas,
Building Ser 2000 (PSF)................................ 5.50 02/15/25 2,695,825
- -------- -------------
52,565 55,409,340
- -------- -------------
Educational Facilities Revenue (2.8%)
1,480 Indiana University, Student Fee Ser K (MBIA)............. 5.875 08/01/20 1,630,842
5,000 Texas State University, Ser 2000 (FSA)................... 5.50 03/15/20 5,456,050
- -------- -------------
6,480 7,086,892
- -------- -------------
Electric Revenue (12.2%)
5,000 California Department of Water Resources, Power Supply
Ser 2002 A............................................. 5.875 05/01/16 5,652,850
Municipal Electric Authority of Georgia,
2,000 Combustion Turbine Ser 2002 A (MBIA)................... 5.25 11/01/21 2,135,680
1,500 Combustion Turbine Ser 2002 A (MBIA)................... 5.25 11/01/22 1,593,360
5,000 Southern Minnesota Municipal Power Agency, Ser 2002 A
(Ambac)................................................ 5.25 01/01/16 5,685,600
Long Island Power Authority, New York,
4,000 Ser 2003 B (WI)........................................ 5.25 06/01/13 4,262,960
1,900 Ser 2000 A (FSA)....................................... 0.00 06/01/16 1,093,032
South Carolina Public Service Authority,
1,500 2002 Refg Ser A (FSA).................................. 5.125 01/01/20 1,598,565
1,000 2002 Refg Ser A (FSA).................................. 5.125 01/01/21 1,058,950
2,000 1997 Refg Ser A (MBIA)................................. 5.00 01/01/29 2,030,440
</Table>
See Notes to Financial Statements
8
Morgan Stanley Quality Municipal Investment Trust
PORTFOLIO OF INVESTMENTS - APRIL 30, 2003 (UNAUDITED) continued
<Table>
<Caption>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------------------------------------------------------------------------------------------------------
$ 4,965 San Antonio, Texas, Electric & Gas Refg Ser 1994 A....... 5.00% 02/01/14 $ 5,180,729
1,000 Intermountain Power Agency, Utah, Refg 1996 Ser D
(Secondary FSA)........................................ 5.00 07/01/21 1,026,020
- -------- -------------
29,865 31,318,186
- -------- -------------
Hospital Revenue (5.5%)
2,000 Indiana Health Facilities Authority Methodist Hospital
Ser 2001............................................... 5.50 09/15/31 2,022,600
Maryland Health & Higher Education Facilities Authority,
2,000 University of Maryland Medical Ser 2002................ 5.75 07/01/17 2,197,040
2,500 University of Maryland Medical Ser 2001................ 5.25 07/01/34 2,533,625
4,000 New Jersey Health Care Authority, St Barnabas Medical
Center Ser 1998 B (MBIA)............................... 4.75 07/01/28 4,009,960
3,000 Lorain County, Ohio, Catholic Healthcare Partners Ser
2001 A................................................. 5.75 10/01/18 3,272,100
- -------- -------------
13,500 14,035,325
- -------- -------------
Industrial Development/Pollution Control Revenue (8.5%)
9,000 Hawaii Department Budget & Finance, Citizens Utilities Co
1991 Ser A & B (AMT)................................... 6.66 11/01/21 8,622,360
2,000 Chicago, Illinois, Peoples Gas Light & Coke Co Refg 1995
Ser A.................................................. 6.10 06/02/25 2,173,940
3,500 Michigan Strategic Fund, Detroit Edison Co. Ser 2001C.... 5.45 09/01/29 3,598,840
2,000 New York State Energy Research & Development Authority,
Brooklyn Union Gas 1991 Ser D (AMT).................... 12.304++ 07/01/26 2,514,560
5,000 Sabine River Authority, Texas, TXU Electric Co Refg Ser
2001 B (AMT)........................................... 5.75 05/01/30 4,872,300
- -------- -------------
21,500 21,782,000
- -------- -------------
Mortgage Revenue - Multi-Family (9.9%)
10,000 Illinois Housing Development Authority, 1991 Ser A....... 8.25 07/01/16 10,051,400
15,000 New Jersey Housing & Mortgage Finance Agency,
Presidential Plaza at Newport - FHA Insured Mtg Refg
1991 Ser 1............................................. 7.00 05/01/30 15,510,000
- -------- -------------
25,000 25,561,400
- -------- -------------
Mortgage Revenue - Single Family (4.8%)
1,040 Colorado Housing & Finance Authority, 2000 Ser D-2
(AMT).................................................. 6.90 04/01/29 1,082,973
8,650 Connecticut Housing Finance Authority, 2000 Ser B-2
(AMT).................................................. 5.85 05/15/31 9,107,930
1,210 District of Columbia Housing Finance Agency, GNMA
Collateralized Ser 1990 B (AMT)........................ 7.10 12/01/24 1,220,588
1,025 New Hampshire Housing Finance Authority, Residential
1991 Ser D (AMT)....................................... 7.25 07/01/15 1,037,997
- -------- -------------
11,925 12,449,488
- -------- -------------
</Table>
See Notes to Financial Statements
9
Morgan Stanley Quality Municipal Investment Trust
PORTFOLIO OF INVESTMENTS - APRIL 30, 2003 (UNAUDITED) continued
<Table>
<Caption>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------------------------------------------------------------------------------------------------------
Public Facilities Revenue (2.9%)
$ 5,000 Arizona School Facilities Board, School Improvement Ser
2001................................................... 5.00% 07/01/19 $ 5,309,450
1,900 Jacksonville, Florida, Sales Tax Ser 2001 (Ambac)........ 5.50 10/01/18 2,110,577
- -------- -------------
6,900 7,420,027
- -------- -------------
Resource Recovery Revenue (1.3%)
3,000 Northeast Maryland Waste Disposal Authority, Montgomery
- -------- County, Ser 2003 (AMT) (Ambac)......................... 5.50 04/01/16 3,295,740
-------------
Transportation Facilities Revenue (20.8%)
Alaska State International Airports System,
1,500 Ser 2002 B (Ambac)..................................... 5.75 10/01/18 1,694,235
1,500 Ser 2002 B (Ambac)..................................... 5.75 10/01/19 1,684,245
10,000 Hillsborough County Port District, Florida, Tampa Port
Authority Spl & Refg Ser 1995 (AMT) (FSA).............. 6.00 06/01/20 10,903,200
2,000 Lee County, Florida, Ser 1995 (MBIA)..................... 5.75 10/01/22 2,209,820
7,250 Atlanta, Georgia, Airport Ser 2000 A (FGIC).............. 5.50 01/01/26 7,789,110
10,000 Georgia State Road & Tollway Authority, Ser 2001......... 5.375 03/01/17 11,116,700
5,000 Massachusetts Bay Transportation Authority, Assessment
2000 Ser A............................................. 5.25 07/01/30 5,253,200
Metropolitan Transportation Authority, New York,
3,000 State Service Contract Ser 2002 A (MBIA)............... 5.50 01/01/19 3,327,810
3,000 State Service Contract Ser 2002 B (MBIA)............... 5.50 07/01/20 3,308,490
3,000 Triborough Bridge & Tunnel Authority, New York, Ser 2001
A...................................................... 5.00 01/01/32 3,052,590
3,000 Port of Seattle, Washington, Subordinate Lien Ser 1999 A
(FGIC)................................................. 5.25 09/01/22 3,174,480
- -------- -------------
49,250 53,513,880
- -------- -------------
Water & Sewer Revenue (27.9%)
2,000 Birmingham, Alabama, Water & Sewer Ser 1998 A............ 4.75 01/01/21 2,027,260
5,000 Colorado Springs, Colorado Utilities Ser 2001 A.......... 5.00 11/15/29 5,107,950
2,000 Martin County, Florida, Utilities Ser 2001............... 5.00 10/01/26 2,063,600
8,000 Tampa Bay Water, Florida, Ser 2001 B (FGIC).............. 5.00 10/01/31 8,215,360
Louisville & Jefferson County Metropolitan Sewer
District, Kentucky,
2,925 Ser 2001 A (MBIA)...................................... 5.375 05/15/20 3,187,811
3,075 Ser 2001 A (MBIA)...................................... 5.375 05/15/21 3,335,145
5,000 Ser 1999 A (FGIC)...................................... 5.75 05/15/33 5,613,500
1,585 Massachusetts Water Resources Authority, 2000 Ser A
(FGIC)................................................. 6.00 08/01/13 1,861,028
2,925 Las Vegas Water District, Nevada, Improvement and Refg
Ser 2003 A (FGIC)...................................... 5.25 06/01/22 3,115,271
New York City Municipal Water Finance Authority, New
York,
3,000 2003 Ser A............................................. 5.375 06/15/18 3,298,170
4,000 1998 Ser D (MBIA)...................................... 4.75 06/15/25 4,025,160
5,000 2002 Ser G............................................. 5.00 06/15/34 5,107,500
</Table>
See Notes to Financial Statements
10
Morgan Stanley Quality Municipal Investment Trust
PORTFOLIO OF INVESTMENTS - APRIL 30, 2003 (UNAUDITED) continued
<Table>
<Caption>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ----------------------------------------------------------------------------------------------------------
$ 7,500 Portland, Oregon, Sewer 2000 Ser A (FGIC)................ 5.75% 08/01/19 $ 8,543,925
6,000 Charleston, South Carolina, Refg Cap Impr Ser 1998
(FGIC)................................................. 4.50 01/01/24 5,912,280
10,000 Houston, Texas, Water & Sewer Jr Lien Refg Ser 2000 B
(FGIC)................................................. 5.25 12/01/30 10,432,900
- -------- -------------
68,010 71,846,860
- -------- -------------
Other Revenue (5.2%)
10,000 New York Local Government Assistance Corporation, New
York, Ser 1995 A....................................... 6.00 04/01/24 11,085,100
2,000 New York City Transitional Finance Authority, New York,
Refg 2003 Ser A........................................ 5.50 11/01/26 2,229,680
- -------- -------------
12,000 13,314,780
- -------- -------------
Refunded (9.0%)
7,000 Hawaii, Airports Second Ser of 1991 (AMT) (ETM).......... 6.90 07/01/12 8,527,120
10,000 Massachusetts, Ser 2000 C................................ 5.75 10/01/10+ 11,733,300
3,000 Salt Lake City, Utah, IHC Hospitals Inc Refg Ser 1991
(Ambac) (ETM).......................................... 12.05++ 05/15/20 3,024,540
- -------- -------------
20,000 23,284,960
- -------- -------------
319,995 Total Tax-Exempt Municipal Bonds (Cost $316,629,701)......................... 340,318,878
- -------- -------------
Short Term Tax-Exempt Municipal Obligations (3.5%)
1,200 Idaho Health Facilities Authority, St Lukes Regional
Medical Center Ser 2000 (FSA) (Demand 05/01/03)........ 1.28* 07/01/30 1,200,000
5,000 Northeast Maryland Waste Disposal Authority, Montgomery
County, Ser 1993 A (AMT) (Redeemed 07/01/03)........... 6.30 07/01/16 5,142,450
2,700 Harris County Health Facilities Development Corporation,
Texas, Methodist Hospital Ser 2002 (Demand 05/01/03)... 1.35* 12/01/32 2,700,000
- -------- -------------
8,900 Total Short-Term Tax-Exempt Municipal Obligations (Cost $9,042,450).......... 9,042,450
- -------- -------------
</Table>
<Table>
$328,895 Total Investments (Cost $325,672,151) (a) (b)...................... 135.8% 349,361,328
========
Other Assets in Excess of Liabilities.............................. 5.1 13,053,338
Preferred Shares of Beneficial Interest............................ (40.9) (105,110,838)
----- -------------
Net Assets Applicable to Common Shareholders....................... 100.0% $ 257,303,828
===== =============
</Table>
See Notes to Financial Statements
11
Morgan Stanley Quality Municipal Investment Trust
PORTFOLIO OF INVESTMENTS - APRIL 30, 2003 (UNAUDITED) continued
- ---------------------
<Table>
Note: The categories of investments are shown as a percentage of net
assets applicable to common shareholders.
AMT Alternative Minimum Tax.
ETM Escrowed to Maturity
PSF Texas Permanent School Fund Guarantee Program.
WI Security purchased on a when-issued basis.
RITES Residual Interest Tax-Exempt Securities
+ Refunded to call date shown.
++ This security has been physically segregated in connection
with open futures contracts.
++ Current coupon rate for residual interest bonds. This rate
resets periodically as the auction rate on the related
short-term securities fluctuates.
* Current coupon of variable rate demand obligation.
(a) Securities have been designated as collateral on an amount
equal to $26,413,760 in connection with open futures
contracts and securities purchased on a when-issued basis.
(b) The aggregate cost for federal income tax purposes
approximates the aggregate cost for book purposes. The
aggregate gross unrealized appreciation is $24,378,988 and
the aggregate gross unrealized depreciation is $689,811,
resulting in net unrealized appreciation of $23,689,177.
Bond Insurance:
- ---------------
Ambac Ambac Assurance Corporation.
FGIC Financial Guaranty Insurance Company.
FSA Financial Security Assurance Inc.
MBIA Municipal Bond Investors Assurance Corporation.
</Table>
Futures Contracts Open at April 30, 2003:
<Table>
<Caption>
DESCRIPTION, UNDERLYING UNREALIZED
NUMBER OF DELIVERY MONTH FACE AMOUNT APPRECIATION/
CONTRACTS LONG/SHORT AND YEAR AT VALUE DEPRECIATION
- --------- ---------- -------------------------- ------------ -------------
100 Short US Treasury Notes 5 Year,
June/2003 $(11,375,000) $ 19,931
50 Short US Treasury Notes 10 Year,
June/2003 (5,756,250) (45,034)
--------
Net unrealized depreciation........................... $(25,103)
========
</Table>
See Notes to Financial Statements
12
Morgan Stanley Quality Municipal Investment Trust
PORTFOLIO OF INVESTMENTS - APRIL 30, 2003 (UNAUDITED) continued
Geographic Summary of Investments
Based on Market Value as a Percent of Net Assets Applicable to Common
Shareholders
<Table>
Alabama................ 0.8%
Alaska................. 2.9
Arizona................ 2.1
California............. 4.1
Colorado............... 2.4
District of Columbia... 0.5
Connecticut............ 3.5
Florida................ 14.1
Georgia................ 8.8
Hawaii................. 6.7
Idaho.................. 0.5
Illinois............... 9.1
Indiana................ 1.4
Kentucky............... 4.7
Maryland............... 5.1
Massachusetts.......... 7.3
Michigan............... 1.4
Minnesota.............. 2.2
Nevada................. 1.2
New Hampshire.......... 0.4
New Jersey............. 10.7
New York............... 16.8
North Carolina......... 2.0%
Ohio................... 1.3
Oregon................. 3.8
Pennsylvania........... 0.9
South Carolina......... 4.1
Texas.................. 14.2
Utah................... 1.6
Washington............. 1.2
-----
Total.................. 135.8%
=====
</Table>
See Notes to Financial Statements
13
Morgan Stanley Quality Municipal Investment Trust
FINANCIAL STATEMENTS
<Table>
Statement of Assets and Liabilities
April 30, 2003 (unaudited)
Assets:
Investments in securities, at value
(cost $325,672,151)....................................... $349,361,328
Cash........................................................ 98,840
Receivable for:
Investments sold........................................ 12,360,064
Interest................................................ 5,363,689
Prepaid expenses............................................ 534,973
------------
Total Assets............................................ 367,718,894
------------
Liabilities:
Payable for:
Investments purchased................................... 4,974,050
Investment management fee............................... 114,050
Variation margin........................................ 76,563
Common shares of beneficial interest repurchased........ 50,655
Accrued expenses............................................ 88,910
------------
Total Liabilities....................................... 5,304,228
------------
Preferred shares of beneficial interest (at liquidation
value) (1,000,000 shares authorized of non-participating
$.01 par value, 2,100 shares outstanding)................. 105,110,838
------------
Net Assets Applicable to Common Shareholders............ $257,303,828
============
Composition of Net Assets Applicable to Common Shareholders:
Common shares of beneficial interest (unlimited shares
authorized of $.01 par value, 16,500,413 shares
outstanding).............................................. $230,333,137
Net unrealized appreciation................................. 23,714,280
Accumulated undistributed net investment income............. 2,719,733
Accumulated undistributed net realized gain................. 536,678
------------
Net Assets Applicable to Common Shareholders............ $257,303,828
============
Net Asset Value Per Common Share
($257,303,828 divided by 16,500,413 common shares
outstanding).............................................. $15.59
============
</Table>
See Notes to Financial Statements
14
Morgan Stanley Quality Municipal Investment Trust
FINANCIAL STATEMENTS continued
<Table>
Statement of Operations
For the six months ended April 30, 2003 (unaudited)
Net Investment Income:
Interest Income............................................. $ 9,428,621
-----------
Expenses
Investment management fee................................... 624,445
Auction commission fees..................................... 213,836
Professional fees........................................... 33,795
Transfer agent fees and expenses............................ 31,898
Shareholder reports and notices............................. 10,912
Trustees' fees and expenses................................. 10,177
Registration fees........................................... 8,753
Auction agent fees.......................................... 8,749
Custodian fees.............................................. 8,344
Other....................................................... 17,517
-----------
Total Expenses.......................................... 968,426
Less: expense offset........................................ (8,316)
-----------
Net Expenses............................................ 960,110
-----------
Net Investment Income................................... 8,468,511
-----------
Net Realized and Unrealized Gain (Loss):
Net Realized Gain (Loss) on:
Investments............................................. 924,366
Futures contracts....................................... (387,684)
-----------
Net Realized Gain....................................... 536,682
-----------
Net Change in Unrealized Appreciation on:
Investments............................................. 7,179,200
Futures contracts....................................... 25,103
-----------
Net Appreciation........................................ 7,204,303
-----------
Net Gain................................................ 7,740,985
-----------
Dividends to preferred shareholders from net investment
income.................................................... (930,845)
-----------
Net Increase................................................ $15,278,651
===========
</Table>
See Notes to Financial Statements
15
Morgan Stanley Quality Municipal Investment Trust
FINANCIAL STATEMENTS continued
<Table>
<Caption>
Statement of Changes in Net Assets
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
APRIL 30, 2003 OCTOBER 31, 2002
------------ ------------
(unaudited)
Increase (Decrease) in Net Assets:
Operations:
Net investment income....................................... $ 8,468,511 $ 18,046,032
Net realized gain........................................... 536,682 1,520,550
Net change in unrealized appreciation....................... 7,204,303 (806,164)
Dividends to preferred shareholders from net investment
income.................................................... (930,845) (2,172,919)
------------ ------------
Net Increase............................................ 15,278,651 16,587,499
------------ ------------
Dividends and Distributions to Common Shareholders from:
Net investment income....................................... (7,978,857) (15,680,616)
Net realized gain*.......................................... (1,549,279) (2,327,706)
------------ ------------
Total Dividends and Distributions....................... (9,528,136) (18,008,322)
------------ ------------
Decrease from transactions in common shares of beneficial
interest.................................................. (3,045,822) (1,798,675)
------------ ------------
Net Increase (Decrease)................................. 2,704,693 (3,219,498)
Net Assets:
Beginning of period......................................... 254,599,135 257,818,633
------------ ------------
End of Period
(Including accumulated undistributed net investment income
of $2,719,733 and $3,160,924, respectively)................. $257,303,828 $254,599,135
============ ============
- ---------------------
* Includes short-term gains of.............................. -- $ 310,272
============ ============
</Table>
See Notes to Financial Statements
16
Morgan Stanley Quality Municipal Investment Trust
NOTES TO FINANCIAL STATEMENTS - APRIL 30, 2003 (UNAUDITED)
1. Organization and Accounting Policies
Morgan Stanley Quality Municipal Investment Trust (the "Trust") is registered
under the Investment Company Act of 1940, as amended, as a diversified,
closed-end management investment company. The Trust's investment objective is to
provide current income which is exempt from federal income tax. The Trust was
organized as a Massachusetts business trust on July 2, 1991 and commenced
operations on September 27, 1991.
The following is a summary of significant accounting policies:
A. Valuation of Investments -- (1) portfolio securities are valued by an outside
independent pricing service approved by the Trustees. The pricing service uses
both a computerized grid matrix of tax-exempt securities and evaluations by its
staff, in each case based on information concerning market transactions and
quotations from dealers which reflect the bid side of the market each day. The
portfolio securities are thus valued by reference to a combination of
transactions and quotations for the same or other securities believed to be
comparable in quality, coupon, maturity, type of issue, call provisions, trading
characteristics and other features deemed to be relevant; (2) futures are valued
at the latest sale price on the commodities exchange on which they trade unless
the Trustees determine that such price does not reflect their market value, in
which case they will be valued at their fair value as determined in good faith
under procedures established by and under the supervision of the Trustees; and
(3) short-term debt securities having a maturity date of more than sixty days at
time of purchase are valued on a mark-to-market basis until sixty days prior to
maturity and thereafter at amortized cost based on their value on the 61st day.
Short-term debt securities having a maturity date of sixty days or less at the
time of purchase are valued at amortized cost.
B. Accounting for Investments -- Security transactions are accounted for on the
trade date (date the order to buy or sell is executed). Realized gains and
losses on security transactions are determined by the identified cost method.
Discounts are accreted and premiums are amortized over the life of the
respective securities. Interest income is accrued daily.
C. Futures Contracts -- A futures contract is an agreement between two parties
to buy and sell financial instruments or contracts based on financial indices at
a set price on a future date. Upon entering into such a contract, the Trust is
required to pledge to the broker cash, U.S. Government securities or other
liquid portfolio securities equal to the minimum initial margin requirements of
the applicable futures exchange. Pursuant to the contract, the Trust agrees to
receive from or pay to the broker an amount of cash equal to the daily
fluctuation in the value of
17
Morgan Stanley Quality Municipal Investment Trust
NOTES TO FINANCIAL STATEMENTS - APRIL 30, 2003 (UNAUDITED) continued
the contract. Such receipts or payments known as variation margin are recorded
by the Trust as unrealized gains and losses. Upon closing of the contract, the
Trust realizes a gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was closed.
D. Federal Income Tax Policy -- It is the Trust's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all of its taxable and nontaxable
income to its shareholders. Accordingly, no federal income tax provision is
required.
E. Dividends and Distributions to Shareholders -- Dividends and distributions to
shareholders are recorded on the ex-dividend date. The amount of dividends and
distributions from net investment income and net realized capital gains are
determined in accordance with federal income tax regulations which may differ
from generally accepted accounting principles. These "book/tax" differences are
either considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment; temporary
differences do not require reclassification. Dividends and distributions which
exceed net investment income and net realized capital gains for financial
reporting purposes but not for tax purposes are reported as dividends in excess
of net investment income or distributions in excess of net realized capital
gains. To the extent they exceed net investment income and net realized capital
gains for tax purposes, they are reported as distributions of paid-in-capital.
F. Use of Estimates -- The preparation of financial statements in accordance
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts and disclosures.
Actual results could differ from those estimates.
2. Investment Management Agreement
Pursuant to an Investment Management Agreement with Morgan Stanley Investment
Advisors Inc. ("the Investment Manager"), the Trust pays the Investment Manager
a management fee, calculated weekly and payable monthly, by applying the annual
rate of 0.35% to the Trust's weekly net assets including preferred shares.
18
Morgan Stanley Quality Municipal Investment Trust
NOTES TO FINANCIAL STATEMENTS - APRIL 30, 2003 (UNAUDITED) continued
3. Security Transactions and Transactions With Affiliates
The cost of purchases and proceeds from sales of portfolio securities, excluding
short-term investments, for the six months ended April 30, 2003 aggregated
$30,291,020 and $37,750,875, respectively.
Morgan Stanley Trust, an affiliate of the Investment Manager, is the Trust's
transfer agent.
The Trust has an unfunded noncontributory defined benefit pension plan covering
all independent Trustees of the Trust who will have served as independent
Trustees for at least five years at the time of retirement. Benefits under this
plan are based on years of service and compensation during the last five years
of service. Aggregate pension costs for the six months ended April 30, 2003
included in Trustees' fees and expenses in the Statement of Operations amounted
to $3,354. At April 30, 2003, the Trust had an accrued pension liability of
$53,004 which is included in accrued expenses in the Statement of Assets and
Liabilities.
4. Preferred Shares of Beneficial Interest
The Trust is authorized to issue up to 1,000,000 non-participating preferred
shares of beneficial interest having a par value of $.01 per share, in one or
more series, with rights as determined by the Trustees, without approval of the
common shareholders. The Trust has issued Series A and Series B Auction Rate
Preferred Shares ("Preferred Shares") which have a liquidation value of $50,000
per share plus the redemption premium, if any, plus accumulated but unpaid
dividends, whether or not declared, thereon to the date of distribution. The
Trust may redeem such shares, in whole or in part, at the original purchase
price of $50,000 per share plus accumulated but unpaid dividends, whether or not
declared, thereon to the date of redemption.
Dividends, which are cumulative, are reset through auction procedures.
<Table>
<Caption>
AMOUNT RESET RANGE OF
SERIES SHARES* IN THOUSANDS* RATE* DATE DIVIDEND RATES**
- --------------------- ------- ------------- ----- -------- ----------------
A 1,400 $70,000 1.90% 09/07/04 1.90%
B 700 35,000 1.30 05/01/03 0.714 - 1.34
</Table>
- ---------------------
* As of April 30, 2003.
** For the six months ended April 30, 2003.
Subsequent to April 30, 2003 and up through June 6, 2003 the Trust paid
dividends to Series A and B at rates ranging from 1.05% to 1.90% in the
aggregate amount of $158,578.
The Trust is subject to certain restrictions relating to the preferred shares.
Failure to comply with these restrictions could preclude the Trust from
declaring any distributions to common
19
Morgan Stanley Quality Municipal Investment Trust
NOTES TO FINANCIAL STATEMENTS - APRIL 30, 2003 (UNAUDITED) continued
shareholders or purchasing common shares and/or could trigger the mandatory
redemption of preferred shares at liquidation value.
The preferred shares, which are entitled to one vote per share, generally vote
with the common shares but vote separately as a class to elect two Trustees and
on any matter affecting the rights of the preferred shares.
5. Common Shares of Beneficial Interest
Transactions in common shares of beneficial interest were as follows:
<Table>
<Caption>
CAPITAL
PAID IN
EXCESS OF
SHARES PAR VALUE PAR VALUE
---------- --------- ------------
Balance, October 31, 2001................................... 16,841,613 $168,416 $235,009,218
Treasury shares purchased and retired (weighted average
discount 5.95%)*.......................................... (125,000) (1,250) (1,797,425)
---------- -------- ------------
Balance, October 31, 2002................................... 16,716,613 167,166 233,211,793
Treasury shares purchased and retired (weighted average
discount 7.85%)*.......................................... (216,200) (2,162) (3,043,660)
---------- -------- ------------
Balance, April 30, 2003..................................... 16,500,413 $165,004 $230,168,133
========== ======== ============
</Table>
- ---------------------
* The Trustees have voted to retire the shares purchased.
6. Federal Income Tax Status
As of October 31, 2002, the Trust had temporary book/tax differences
attributable to book amortization of discount on debt securities and dividend
payable.
7. Dividends To Common Shareholders
On March 25, 2003, the Trust declared the following dividends from net
investment income:
<Table>
<Caption>
AMOUNT RECORD PAYABLE
PER SHARE DATE DATE
- --------- ------------ -------------
$0.08 May 9, 2003 May 23, 2003
$0.08 June 6, 2003 June 20, 2003
</Table>
8. Expense Offset
The expense offset represents a reduction of the custodian fees for earnings on
cash balances maintained by the Trust.
20
Morgan Stanley Quality Municipal Investment Trust
NOTES TO FINANCIAL STATEMENTS - APRIL 30, 2003 (UNAUDITED) continued
9. Risks Relating to Certain Financial Instruments
The Trust may invest a portion of its assets in residual interest bonds, which
are inverse floating rate municipal obligations. The prices of these securities
are subject to greater market fluctuations during periods of changing prevailing
interest rates than are comparable fixed rate obligations.
At April 30, 2003, the Trust held positions in residual interest bonds having a
total value of $7,825,560, which represents 3.0% of the Trust's net assets
applicable to common shareholders.
To hedge against adverse interest rate changes, the Trust may invest in
financial futures contracts or municipal bond index futures contracts ("futures
contracts").
These futures contracts involve elements of market risk in excess of the amount
reflected in the Statement of Assets and Liabilities. The Trust bears the risk
of an unfavorable change in the value of the underlying securities.
At April 30, 2003, the Trust had outstanding futures contracts.
21
Morgan Stanley Quality Municipal Investment Trust
FINANCIAL HIGHLIGHTS
Selected ratios and per share data for a common share of beneficial interest
outstanding throughout each period:
<Table>
<Caption>
FOR THE SIX FOR THE YEAR ENDED OCTOBER 31
MONTHS ENDED -------------------------------------------------------
APRIL 30, 2003 2002 2001 2000 1999 1998
-------------- -------- -------- -------- -------- --------
(unaudited)
Selected Per Share Data:
Net asset value, beginning of period........... $15.23 $15.31 $14.64 $ 14.35 $15.66 $15.50
------ ------ ------ ------- ------ ------
Income (loss) from investment operations:
Net investment income*..................... 0.51 1.07 1.17 1.18 1.16 1.19
Net realized and unrealized gain (loss).... 0.47 0.04 0.66 0.23 (1.28) 0.15
Common share equivalent of dividends paid
to preferred shareholders................ (0.06) (0.13) (0.22) (0.25) (0.20) (0.21)
------ ------ ------ ------- ------ ------
Total income (loss) from investment
operations................................... 0.92 0.98 1.61 1.16 (0.32) 1.13
------ ------ ------ ------- ------ ------
Less dividends and distributions from:
Net investment income...................... (0.48) (0.93) (0.93) (0.93) (0.90) (0.96)
Net realized gain.......................... (0.09) (0.14) (0.01) -- (0.11) (0.01)
------ ------ ------ ------- ------ ------
Total dividends and distributions.............. (0.57) (1.07) (0.94) (0.93) (1.01) (0.97)
------ ------ ------ ------- ------ ------
Anti-dilutive effect of acquiring treasury
shares*...................................... 0.01 0.01 -- 0.06 0.02 --
------ ------ ------ ------- ------ ------
Net asset value, end of period................. $15.59 $15.23 $15.31 $ 14.64 $14.35 $15.66
====== ====== ====== ======= ====== ======
Market value, end of period.................... $14.43 $14.08 $15.08 $13.688 $13.00 $15.50
====== ====== ====== ======= ====== ======
Total Return+.................................. 6.74%(1) 0.52% 17.52% 12.84% (10.12)% 7.71%
Ratios to Average Net Assets of Common
Shareholders:
Total Expenses (before expense offset)......... 0.77%(2)(3) 0.73% 0.74%(3) 0.75% 0.71% 0.71%(3)
Net investment income before preferred stock
dividends.................................... 6.71%(2) 7.15% 7.83% 8.18% 7.66% 7.65%
Preferred stock dividends...................... 0.74%(2) 0.86% 1.46% 1.74% 1.34% 1.37%
Net investment income available to common
shareholders................................. 5.97%(2) 6.29% 6.37% 6.44% 6.32% 6.28%
Supplemental Data:
Net assets applicable to common shareholders,
end of period, in thousands................... $257,304 $254,599 $257,819 $247,389 $253,633 $282,612
Asset coverage on preferred shares at end of
period....................................... 345% 342% 345% 335% 341% 369%
Portfolio turnover rate........................ 9%(1) 17% 23% 20% 8% 9%
</Table>
- ---------------------
<Table>
* The per share amounts were computed using an average number
of common shares outstanding during the period.
+ Total return is based upon the current market value on the
last day of each period reported. Dividends and
distributions are assumed to be reinvested at the prices
obtained under the Trust's dividend reinvestment plan. Total
return does not reflect brokerage commissions.
(1) Not annualized.
(2) Annualized.
(3) Does not reflect the effect of expense offset of 0.01%.
</Table>
See Notes to Financial Statements
22
(This Page Intentionally Left Blank)
TRUSTEES
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
Wayne E. Hedien
James F. Higgins
Dr. Manuel H. Johnson
Michael E. Nugent
Philip J. Purcell
OFFICERS
Charles A. Fiumefreddo
Chairman of the Board
Mitchell M. Merin
President
Ronald E. Robison
Executive Vice President and Principal Executive Officer
Barry Fink
Vice President, Secretary and General Counsel
Joseph J. McAlinden
Vice President
Francis Smith
Vice President and Chief Financial Officer
Thomas F. Caloia
Treasurer
TRANSFER AGENT
Morgan Stanley Trust
Harborside Financial Center -- Plaza Two
Jersey City, New Jersey 07311
INDEPENDENT AUDITORS
Deloitte & Touche LLP
Two World Financial Center
New York, New York 10281
INVESTMENT MANAGER
Morgan Stanley Investment Advisors Inc.
1221 Avenue of the Americas
New York, New York 10020
The financial statements included herein have been taken from the records of the
Trust without examination by the independent auditors and accordingly they
do not express an opinion thereon.
Investments and services offered through Morgan Stanley DW Inc., member SIPC.
[MORGAN STANLEY LOGO]
MORGAN STANLEY
QUALITY MUNICIPAL
INVESTMENT TRUST
Semiannual Report
April 30, 2003
38570RPT-11154 E03-AS-5/03
Item 9 - Controls and Procedures
The Trust's chief executive officer and chief financial officer have concluded
that the Trust's disclosure controls and procedures are sufficient to ensure
that information required to be disclosed by the Trust in this Form N-CSR was
recorded, processed, summarized and reported within the time periods specified
in the Securities and Exchange Commission's rules and forms, based upon such
officers' evaluation of these controls and procedures as of a date within 90
days of the filing date of the report.
There were no significant changes or corrective actions with regard to
siginficant deficiencies or material weaknesses in the Trust's internal controls
or in other factors that could significantly affect the Trust's internal
controls subsequent to the date of their evaluation.
Item 10b Exhibits
A separate certification for each principal executive officer and principal
financial officer of the registrant are attached hereto as part of EX-99.CERT.
Items 2 - 8 and Item 10a are not applicable
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
Morgan Stanley Quality Municipal Investment Trust
Ronald E. Robison
Principal Executive Officer
June 20, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed by the following
persons on behalf of the registrant and in the capacities and on the dates
indicated.
Ronald E. Robison
Principal Executive Officer
June 20, 2003
Francis Smith
Principal Financial Officer
June 20, 2003
2