UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number: 811-07528
Insured Municipal Income Fund Inc.
(Exact name of registrant as specified in charter)
51 West 52nd Street, New York, New York 10019-6114
(Address of principal executive offices) (Zip code)
Mark F. Kemper, Esq.
UBS Global Asset Management
51 West 52nd Street
New York, NY 10019-6114
(Name and address of agent for service)
Copy to:
Jack W. Murphy, Esq.
Dechert LLP
1775 I Street, N.W.
Washington, DC 20006-2401
Registrant’s telephone number, including area code: 212-882 5000
Date of fiscal year end: March 31
Date of reporting period: June 30, 2007
Item 1. Schedule of Investments
Insured Municipal Income Fund Inc.
Schedule of investments – June 30, 2007 (unaudited)
| Principal amount (000) ($) |
Moody’s rating |
S&P rating |
Maturity dates |
Interest rates (%) |
Value ($) | |||||||
| Long-term municipal bonds — 162.49% | ||||||||||||
| California — 52.49% | ||||||||||||
| 3,000 | California State Department of Water Resources Revenue-Central Valley Project-Series AC (MBIA Insured) | Aaa | AAA | 12/01/27 | 5.000 | 3,105,210 | ||||||
| 30 | California State General Obligation (FGIC Insured) | Aaa | AAA | 11/01/12 | 7.000 | 30,324 | ||||||
| 7,000 | California State General Obligation Refunding-Series 2 | A1 | A+ | 09/01/27 | 5.000 | 7,182,840 | ||||||
| 3,305 | Chino Valley Unified School District-Series A (FSA Insured) | Aaa | AAA | 08/01/26 | 5.000 | 3,407,819 | ||||||
| 13,500 | Contra Costa County Public Financing Lease Revenue Refunding-Medical Center-Series B (MBIA Insured) | Aaa | AAA | 06/01/17 | 5.000 | 14,314,995 | ||||||
| 2,000 | Long Beach Finance Authority Lease Revenue-Aquarium of the South Pacific (AMBAC Insured) |
Aaa | AAA | 11/01/15 | 5.500 | 2,124,840 | ||||||
| 5,000 | Long Beach Harbor Revenue Refunding-Series A (FGIC Insured)1 | Aaa | AAA | 05/15/13 | 6.000 | 5,473,200 | ||||||
| 5,000 | Los Angeles Community College District Refunding-Election 2001-Series A (FSA Insured) | Aaa | AAA | 08/01/25 | 5.000 | 5,202,150 | ||||||
| 9,000 | Los Angeles Community College District Refunding-Election 2001-Series A (FSA Insured) | Aaa | AAA | 06/01/26 | 5.000 | 9,345,240 | ||||||
| 8,475 | Los Angeles County Sanitation Districts Financing Authority Revenue-Capital Projects-Series A (FSA Insured) | Aaa | AAA | 10/01/20 | 5.000 | 8,825,102 | ||||||
| 11,625 | Los Angeles Wastewater System Revenue Refunding-Subseries A (MBIA Insured) | Aaa | AAA | 06/01/26 | 5.000 | 11,984,678 | ||||||
| 5,000 | Los Angeles Water & Power Revenue-Power System-Series A, Subseries A-2 (MBIA-IBC Insured) | Aaa | AAA | 07/01/30 | 5.000 | 5,130,250 | ||||||
| 6,000 | Los Angeles Water & Power Revenue-Power System-Series B (FSA Insured) |
Aaa | AAA | 07/01/25 | 5.000 | 6,172,200 | ||||||
| 15,000 | Manteca Financing Authority Water Revenue-Series A (MBIA Insured) |
Aaa | AAA | 07/01/33 | 4.750 | 15,069,900 | ||||||
| 10,000 | Metropolitan Water District of Southern California Waterworks Revenue-Series A (FSA Insured) | Aaa | AAA | 07/01/35 | 5.000 | 10,326,200 | ||||||
| 7,160 | Oxnard Financing Authority Wastewater Revenue-Redwood Trunk Sewer & Headworks-Series A (FGIC Insured) |
Aaa | AAA | 06/01/34 | 5.250 | 7,526,520 | ||||||
| 10,000 | Sacramento County Sanitation District Financing Authority Revenue Refunding (AMBAC Insured) | Aaa | AAA | 12/01/27 | 5.000 | 10,257,100 | ||||||
| 7,000 | Sacramento Municipal Utility District Electric Revenue-Municipal Utility District-Series R (MBIA Insured) | Aaa | AAA | 08/15/19 | 5.000 | 7,284,130 | ||||||
| 5,000 | Sacramento Municipal Utility District Electric Revenue-Municipal Utility District-Series R (MBIA Insured) | Aaa | AAA | 08/15/33 | 5.000 | 5,137,700 | ||||||
| 4,000 | San Francisco City & County Airports Commission International Airport Revenue Refunding-Second Series 27B (FGIC Insured) | Aaa | AAA | 05/01/15 | 5.250 | 4,170,280 | ||||||
| 3,000 | San Francisco City & County Public Utilities Commission Water Revenue-Series A (MBIA Insured) | Aaa | AAA | 11/01/25 | 5.000 | 3,083,520 | ||||||
| 7,910 | San Jose Libraries, Parks & Public Safety Project (MBIA Insured) | Aaa | AAA | 09/01/27 | 5.000 | 8,154,973 | ||||||
| 3,825 | Walnut Energy Center Authority Revenue-Series A (AMBAC Insured) |
Aaa | AAA | 01/01/34 | 5.000 | 3,901,538 | ||||||
| 157,210,709 | ||||||||||||
| District of Columbia — 4.12% | ||||||||||||
| 4,000 | District of Columbia Hospital Revenue Refunding-Medlantic Healthcare-Series A (Escrowed to Maturity) (MBIA Insured) | Aaa | AAA | 08/15/14 | 5.750 | 4,080,680 | ||||||
Insured Municipal Income Fund Inc.
Schedule of investments – June 30, 2007 (unaudited)
| Principal amount (000) ($) |
Moody’s rating |
S&P rating |
Maturity dates |
Interest rates (%) |
Value ($) | |||||||
| Long-term municipal bonds — (continued) | ||||||||||||
| District of Columbia — (concluded) | ||||||||||||
| 6,000 | District of Columbia Water & Sewer Authority Public Utility Revenue-Subordinate Lien Revenue (FGIC Insured) |
Aaa | AAA | 10/01/33 | 5.000 | 6,132,060 | ||||||
| 2,000 | Metropolitan Washington, D.C. Airport Authority Airport System Revenue-Series A (MBIA Insured)1 | Aaa | AAA | 10/01/16 | 5.250 | 2,126,720 | ||||||
| 12,339,460 | ||||||||||||
| Florida — 14.49% | ||||||||||||
| 8,000 | Florida State Board of Education-Capital Outlay-Series E (FGIC Insured) |
Aaa | AAA | 06/01/24 | 5.000 | 8,239,920 | ||||||
| 10,220 | Florida State Board of Education-Public Education-Series A (FSA Insured) |
Aaa | AAA | 06/01/27 | 5.000 | 10,493,180 | ||||||
| 1,060 | Hillsborough County Port District Revenue-Tampa Port Authority Project-Series A (MBIA Insured)1 | Aaa | AAA | 06/01/16 | 5.750 | 1,136,087 | ||||||
| 1,115 | Hillsborough County Port District Revenue-Tampa Port Authority Project-Series A (MBIA Insured)1 | Aaa | AAA | 06/01/17 | 5.750 | 1,192,481 | ||||||
| 1,175 | Hillsborough County Port District Revenue-Tampa Port Authority Project-Series A (MBIA Insured)1 | Aaa | AAA | 06/01/18 | 5.750 | 1,256,651 | ||||||
| 1,240 | Hillsborough County Port District Revenue-Tampa Port Authority Project-Series A (MBIA Insured)1 | Aaa | AAA | 06/01/19 | 5.750 | 1,326,168 | ||||||
| 10,000 | Miami-Dade County Aviation Revenue Refunding-Miami International Airport-Series B (XLCA Insured)1 |
Aaa | AAA | 10/01/18 | 5.000 | 10,334,000 | ||||||
| 3,000 | Miami-Dade County Expressway Authority Toll System Revenue-Series B (FGIC Insured) | Aaa | AAA | 07/01/26 | 5.250 | 3,174,780 | ||||||
| 6,000 | Miami-Dade County School Board-Certificates of Participation- Series A (FGIC Insured) |
Aaa | AAA | 05/01/21 | 5.000 | 6,250,560 | ||||||
| 43,403,827 | ||||||||||||
| Georgia — 9.21% | ||||||||||||
| 11,545 | Atlanta Airport Revenue Refunding-Series D (FGIC Insured)1 | Aaa | AAA | 01/01/15 | 5.250 | 12,168,315 | ||||||
| 1,015 | Columbus Building Authority Lease Revenue-Series A (FGIC Insured) |
Aaa | AAA | 01/01/16 | 5.250 | 1,086,375 | ||||||
| 5,000 | George L Smith II World Congress Center Authority Revenue Refunding-Domed Stadium Project (MBIA Insured)1 | Aaa | AAA | 07/01/14 | 5.750 | 5,258,650 | ||||||
| 15 | Georgia Municipal Electric Authority Power Revenue-Series Y (Escrowed to Maturity) (MBIA-IBC Insured) | Aaa | AAA | 01/01/10 | 10.000 | 17,125 | ||||||
| 4,515 | Georgia Municipal Electric Authority Power Revenue-Unrefunded Balance-Series Y (FSA-CR Insured)2 | Aaa | AAA | 01/01/10 | 10.000 | 5,154,775 | ||||||
| 3,410 | Georgia Municipal Electric Authority Power Revenue-Unrefunded Balance-Series Y (MBIA-IBC Insured) | Aaa | AAA | 01/01/10 | 10.000 | 3,893,197 | ||||||
| 27,578,437 | ||||||||||||
| Illinois — 3.75% | ||||||||||||
| 1,500 | Chicago General Obligation-Series A (FSA Insured) | Aaa | AAA | 01/01/25 | 5.000 | 1,544,445 | ||||||
| 2,000 | Chicago General Obligation-Series A (FSA Insured) | Aaa | AAA | 01/01/26 | 5.000 | 2,056,980 | ||||||
| 4,500 | Illinois Health Facilities Authority Revenue-Franciscan Sisters Health Care-Series C (Escrowed to Maturity) (MBIA Insured) |
Aaa | AAA | 09/01/18 | 5.750 | 4,935,555 | ||||||
| 2,395 | Metropolitan Pier & Exposition Authority Dedicated State Tax- Series A-2002 (Pre-refunded with US Government Securities to 06/15/19 @ 100) (FGIC Insured) |
Aaa | AAA | 12/15/23 | 5.500 | 2,691,525 | ||||||
| 11,228,505 | ||||||||||||
Insured Municipal Income Fund Inc.
Schedule of investments – June 30, 2007 (unaudited)
| Principal amount (000) ($) |
Moody’s rating |
S&P rating |
Maturity dates |
Interest rates (%) |
Value ($) | |||||||
| Long-term municipal bonds — (continued) | ||||||||||||
| Indiana — 4.76% | ||||||||||||
| 5,000 | Indiana Health & Educational Facilities Financing Authority Hospital Revenue Refunding-Clarian Health Obligation Group-Series B | A2 | A+ | 02/15/30 | 5.000 | 4,979,550 | ||||||
| 8,000 | Indianapolis Airport Authority Revenue Refunding-Special Facilities-Fed Ex Corp. Project1 | Baa2 | BBB | 01/15/17 | 5.100 | 8,227,520 | ||||||
| 1,000 | Indiana University Revenue-Student Fee-Series O (FGIC Insured) | Aaa | AAA | 08/01/18 | 5.250 | 1,053,660 | ||||||
| 14,260,730 | ||||||||||||
| Maine — 1.61% | ||||||||||||
| 4,785 | Maine Health & Higher Educational Facilities Authority Revenue-Series A (Escrowed to Maturity) (FSA Insured) | NR | AAA | 07/01/23 | 5.500 | 4,819,930 | ||||||
| Massachusetts — 0.52% | ||||||||||||
| 1,500 | Massachusetts State Port Authority Revenue-US Airways Project (MBIA Insured)1 | Aaa | AAA | 09/01/21 | 6.000 | 1,560,210 | ||||||
| Michigan — 3.91% | ||||||||||||
| 5,525 | Michigan State Hospital Finance Authority Revenue Refunding-Trinity Health Credit Group-Series D | Aa3 | AA- | 08/15/25 | 5.000 | 5,613,179 | ||||||
| 6,000 | Michigan State Hospital Finance Authority Revenue-Trinity Health Credit Group-Series A |
Aa2 | AA- | 12/01/26 | 5.000 | 6,103,500 | ||||||
| 11,716,679 | ||||||||||||
| Minnesota — 1.75% | ||||||||||||
| 5,000 | Minneapolis & St. Paul Metropolitan Airport Commission Airport Revenue-Series B (FGIC Insured)1 | Aaa | AAA | 01/01/19 | 6.000 | 5,255,750 | ||||||
| Nevada — 1.44% | ||||||||||||
| 4,200 | Clark County-Bond Bank-Unrefunded Balance (MBIA Insured) | Aaa | AAA | 06/01/32 | 5.000 | 4,302,648 | ||||||
| New Jersey — 1.07% | ||||||||||||
| 3,150 | New Jersey Economic Development Authority Revenue- Cigarette Tax (FGIC Insured) |
Aaa | AAA | 06/15/09 | 5.000 | 3,217,757 | ||||||
| New Mexico — 2.88% | ||||||||||||
| 4,130 | University of New Mexico Revenue-Hospital Mortgage (FSA-FHA Insured) |
Aaa | AAA | 01/01/23 | 5.000 | 4,265,423 | ||||||
| 4,230 | University of New Mexico Revenue-Hospital Mortgage (FSA-FHA Insured) |
Aaa | AAA | 07/01/23 | 5.000 | 4,368,701 | ||||||
| 8,634,124 | ||||||||||||
| New York — 18.11% | ||||||||||||
| 5,000 | Hudson Yards Infrastructure Corp. Revenue-Series A (FGIC Insured) |
Aaa | AAA | 02/15/47 | 5.000 | 5,145,250 | ||||||
| 5,650 | Metropolitan Transportation Authority Dedicated Tax Fund-Series A (FSA Insured) |
Aaa | AAA | 11/15/24 | 5.250 | 5,954,874 | ||||||
| 4,615 | New York City General Obligation-Subseries F-1 | A1 | AA- | 09/01/25 | 5.000 | 4,761,480 | ||||||
| 5,000 | New York City Industrial Development Agency Special Facilities Revenue-Terminal One Group Association Project1 | A3 | BBB+ | 01/01/15 | 5.500 | 5,364,850 | ||||||
| 6,685 | New York City Industrial Development Agency Special Facilities Revenue-Terminal One Group Association Project1 | A3 | BBB+ | 01/01/16 | 5.500 | 7,177,551 | ||||||
| 2,750 | New York City Industrial Development Agency Special Facilities Revenue-Terminal One Group Association Project1 | A3 | BBB+ | 01/01/18 | 5.500 | 2,930,565 | ||||||
| 7,000 | New York City Municipal Water Finance Authority Water & Sewer System Revenue-Series C (MBIA Insured) |
Aaa | AAA | 06/15/26 | 5.000 | 7,260,330 | ||||||
Insured Municipal Income Fund Inc.
Schedule of investments – June 30, 2007 (unaudited)
| Principal amount (000) ($) |
Moody’s rating |
S&P rating |
Maturity dates |
Interest rates (%) |
Value ($) | |||||||
| Long-term municipal bonds — (continued) | ||||||||||||
| New York — (concluded) | ||||||||||||
| 10,080 | New York City Municipal Water Finance Authority Water & Sewer System Revenue-Series C (MBIA Insured) | Aaa | AAA | 06/15/27 | 5.000 | 10,448,021 | ||||||
| 5,000 | Triborough Bridge & Tunnel Authority Revenue-Subordinate Bonds (AMBAC Insured) | Aaa | AAA | 11/15/26 | 5.125 | 5,210,750 | ||||||
| 54,253,671 | ||||||||||||
| Pennsylvania — 6.76% | ||||||||||||
| 15,390 | Allegheny County Sanitation Authority Sewer Revenue Refunding-Series A (MBIA Insured) | Aaa | AAA | 12/01/23 | 5.000 | 16,055,464 | ||||||
| 4,000 | Philadelphia Authority For Industrial Development Airport Revenue-Philadelphia Airport System Project-Series A (FGIC Insured)1 | Aaa | AAA | 07/01/18 | 5.500 | 4,192,080 | ||||||
| 20,247,544 | ||||||||||||
| Puerto Rico — 3.43% | ||||||||||||
| 10,000 | University of Puerto Rico-University Revenue Refunding System-Series P | Baa2 | BBB | 06/01/21 | 5.000 | 10,260,200 | ||||||
| South Carolina — 10.61% | ||||||||||||
| 2,500 | Medical University of South Carolina Hospital Authority-Hospital Facilities Revenue Refunding-Series A (MBIA-FHA Insured) | Aaa | AAA | 02/15/25 | 5.250 | 2,620,875 | ||||||
| 20,000 | South Carolina Public Service Authority Revenue-Santee Cooper-Series A (MBIA Insured) | Aaa | AAA | 01/01/25 | 5.000 | 20,786,200 | ||||||
| 8,180 | South Carolina Transportation Infrastructure Bank Revenue-Series A (AMBAC Insured) | Aaa | NR | 10/01/33 | 5.000 | 8,360,451 | ||||||
| 31,767,526 | ||||||||||||
| Tennessee — 0.70% | ||||||||||||
| 2,000 | Memphis-Shelby County Airport Authority Airport Revenue-Series D (AMBAC Insured)1 | Aaa | AAA | 03/01/24 | 6.000 | 2,100,600 | ||||||
| Texas — 12.59% | ||||||||||||
| 5,170 | Fort Bend Independent School District Refunding-Series A (PSF-GTD) | NR | AAA | 08/15/26 | 5.250 | 5,445,457 | ||||||
| 13,500 | Houston Utility System Revenue Refunding-First Lien-Series A (FGIC Insured) |
Aaa | AAA | 05/15/23 | 5.250 | 14,261,400 | ||||||
| 5,665 | Houston Utility System Revenue Refunding-First Lien-Series A (MBIA Insured) |
Aaa | AAA | 05/15/25 | 5.250 | 5,975,329 | ||||||
| 2,000 | Jefferson County General Obligation Refunding (FGIC Insured) | Aaa | AAA | 08/01/20 | 5.250 | 2,095,240 | ||||||
| 720 | San Antonio Water Revenue (Pre-refunded with US Government Securities to 05/15/12 @ 100) (Escrowed to Maturity) (MBIA Insured) | Aaa | AAA | 05/15/16 | 6.000 | 783,202 | ||||||
| 9,000 | Wylie Independent School District Refunding (PSF-GTD) | Aaa | AAA | 08/15/30 | 5.000 | 9,133,470 | ||||||
| 37,694,098 | ||||||||||||
| Washington — 7.89% | ||||||||||||
| 15,000 | Chelan County Public Utility District No. 001 Consolidated Revenue Refunding-Chelan Hydropower-Series A (MBIA Insured)1 | Aaa | AAA | 07/01/32 | 6.050 | 16,396,050 | ||||||
| 2,220 | Cowlitz County School District No. 458 Kelso (FSA Insured) | Aaa | NR | 12/01/15 | 5.750 | 2,386,411 | ||||||
| 1,000 | Cowlitz County School District No. 458 Kelso (FSA Insured) | Aaa | NR | 12/01/18 | 5.750 | 1,071,920 | ||||||
| 1,500 | King County Public Hospital District No. 2 Refunding-Evergreen Healthcare (MBIA Insured) | Aaa | AAA | 12/01/18 | 5.000 | 1,574,775 | ||||||
| 2,095 | King County Public Hospital District No. 2 Refunding-Evergreen Healthcare (MBIA Insured) | Aaa | AAA | 12/01/19 | 5.000 | 2,191,203 | ||||||
| 23,620,359 | ||||||||||||
Insured Municipal Income Fund Inc.
Schedule of investments – June 30, 2007 (unaudited)
| Principal amount (000) ($) |
Moody’s rating |
S&P rating |
Maturity dates |
Interest rates (%) |
Value ($) | ||||||||
| Long-term municipal bonds — (concluded) | |||||||||||||
| Wisconsin — 0.40% | |||||||||||||
| 1,105 | Ladysmith-Hawkins School District Refunding (FGIC Insured) | Aaa | NR | 04/01/20 | 5.500 | 1,205,875 | |||||||
| Total long-term municipal bonds (cost — $490,494,158) | 486,678,639 | ||||||||||||
| Short-term municipal notes3 —9.90% | |||||||||||||
| Florida — 5.11% | |||||||||||||
| 15,315 | Sunshine State Governmental Financing Commission Revenue (AMBAC Insured) |
VMIG-1 | NR | 07/02/07 | 3.770 | 15,315,000 | |||||||
| Maryland — 0.64% | |||||||||||||
| 1,925 | Maryland State Economic Development Corp. Revenue-US Pharmacopeial Project-Series A (AMBAC Insured) | VMIG-1 | A-1+ | 07/02/07 | 3.900 | 1,925,000 | |||||||
| Missouri — 2.08% | |||||||||||||
| 1,100 | Missouri Development Financing Board Cultural Facilities Revenue-Nelson Gallery Funding-Series B (MBIA Insured) | VMIG-1 | A-1+ | 07/02/07 | 3.800 | 1,100,000 | |||||||
| 5,120 | Missouri Health & Educational Facilities Authority-Educational Facilities Revenue-St. Louis University-Series A (MBIA Insured) |
VMIG-1 | A-1+ | 07/02/07 | 3.740 | 5,120,000 | |||||||
| 6,220,000 | |||||||||||||
| New York — 0.73% | |||||||||||||
| 2,200 | New York City Municipal Water Financing Authority Water & Sewer Systems Revenue-Series A (FGIC Insured) |
VMIG-1 | A-1+ | 07/02/07 | 3.750 | 2,200,000 | |||||||
| Oklahoma — 0.10% | |||||||||||||
| 300 | Oklahoma State Industrial Authority Revenue Refunding-Integris Baptist-Series B (MBIA Insured) |
VMIG-1 | A-1+ | 07/02/07 | 3.800 | 300,000 | |||||||
| Texas — 1.24% | |||||||||||||
| 2,200 | Bell County Health Facilities Development Corp. Revenue-Scott & White Memorial Hospital-Series 2001-2 (MBIA Insured) |
VMIG-1 | NR | 07/02/07 | 3.800 | 2,200,000 | |||||||
| 1,500 | Bell County Health Facilities Development Corp. Revenue-Scott & White Memorial Hospital-Series B-2 (MBIA Insured) |
VMIG-1 | A-1+ | 07/02/07 | 3.800 | 1,500,000 | |||||||
| 3,700,000 | |||||||||||||
| Total short-term municipal notes (cost — $29,660,000) | 29,660,000 | ||||||||||||
| Total investments (cost — $520,154,158)4,5 — 172.39% | 516,338,639 | ||||||||||||
| Liabilities in excess of other assets — (2.28)% | (6,816,535 | ) | |||||||||||
| Liquidation value of auction preferred shares — (70.11)% | (210,000,000 | ) | |||||||||||
| Net assets applicable to common shareholders — 100.00% | 299,522,104 | ||||||||||||
| 1 | Security subject to Alternative Minimum Tax. |
| 2 | Partial amount delivered to broker as collateral for futures transactions. |
| 3 | Variable rate demand notes are payable on demand. The maturity dates shown are the next interest rate reset dates. The interest rates shown are the current rates as of June 30, 2007. |
| 4 | Cost of investments shown approximates cost for federal income tax purposes. Gross unrealized appreciation of investments and gross unrealized depreciation of investments at June 30, 2007 were $1,854,745 and $5,670,264, respectively, resulting in net unrealized depreciation of investments of $3,815,519. |
Insured Municipal Income Fund Inc.
Schedule of investments – June 30, 2007 (unaudited)
| 5 | The Fund calculates its net asset value based on the current market value, where available, for its portfolio securities. The Fund normally obtains market values for its securities from independent pricing sources and broker-dealers. Independent pricing sources may use last reported sale prices, current market quotations or valuations from computerized “matrix” systems that derive values based on comparable securities. A matrix system incorporates parameters such as security quality, maturity and coupon, and/or research and evaluations by its staff, including review of broker-dealer market price quotations, if available, in determining the valuation of the portfolio securities. If a market value is not available from an independent pricing source for a particular security, that security is valued at fair value as determined in good faith by or under the direction of the Fund’s Board of Directors (the “Board”). Various factors may be reviewed in order to make a good faith determination of a security’s fair value. These factors may include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; and changes in overall market conditions. If events occur that materially affect the value of securities (particularly non-US securities) between the close of trading in those securities and the close of regular trading on the New York Stock Exchange, the securities are fair valued. The amortized cost method of valuation, which approximates market value, generally is used to value short-term debt instruments with sixty days or less remaining to maturity, unless the Board or its delegate determines that this does not represent fair value. Securities traded in the over-the-counter (“OTC”) market are valued at the last bid price available on the valuation date prior to valuation. |
| AMBAC | American Municipal Bond Assurance Corporation |
| CR | Custodial Receipts |
| FGIC | Financial Guaranty Insurance Company |
| FHA | Federal Housing Authority |
| FSA | Financial Security Assurance |
| GTD | Guaranteed |
| IBC | Insured Bond Certificate |
| MBIA | Municipal Bond Investors Assurance |
| NR | Not Rated |
| PSF | Permanent School Fund |
| XLCA | XL Capital Assurance |
Futures contracts
| Number of contracts |
Sale contracts | Expiration dates | Proceeds ($) | Current value ($) |
Unrealized appreciation (depreciation) ($) |
||||||
| 200 | US Treasury Bond 30 Year Futures | September 2007 | 21,542,607 | 21,550,000 | (7,393 | ) | |||||
| 170 | US Treasury Note 10 Year Futures | September 2007 | 18,080,457 | 17,969,531 | 110,926 | ||||||
| 370 | 39,623,064 | 39,519,531 | 103,533 |
For more information regarding the Fund’s other significant accounting policies, please refer to the Fund’s annual report to shareholders dated March 31, 2007.
Item 2. Controls and Procedures.
| (a) | The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (“Investment Company Act”)) are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document. |
| (b) | The registrant’s principal executive officer and principal financial officer are aware of no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 3. Exhibits.
| (a) | Certifications of principal executive officer and principal financial officer of registrant pursuant to Rule 30a-2(a) under the Investment Company Act is attached hereto as Exhibit EX-99.CERT. |
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.
| Insured Municipal Income Fund Inc. | ||
| By: | /s/ Kai R. Sotorp | |
| Kai R. Sotorp | ||
| President | ||
Date: August 29, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By: | /s/ Kai R. Sotorp | |
| Kai R. Sotorp | ||
| President | ||
| Date: | August 29, 2007 | |
| By: | /s/ Thomas Disbrow | |
| Thomas Disbrow | ||
| Vice President and Treasurer | ||
Date: August 29, 2007