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 811-8707
Name of Fund: MuniHoldings Insured Fund, Inc.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr.,
President, MuniHoldings Insured Fund, Inc., 800 Scudders Mill
Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011,
Princeton, NJ, 08543-9011
Registrant's telephone number, including area code: (609) 282-2800
Date of fiscal year end: 04/30/05
Date of reporting period: 11/01/04 - 1/31/05
Item 1 - Schedule of Investments
MuniHoldings Insured Fund, Inc.
Schedule of Investments as of January 31, 2005 (in Thousands)
Face
State Amount Municipal Bonds Value
Arizona - 2.0% $ 3,590 Pinal County, Arizona, COP, 5.25% due 12/01/2023 $ 3,831
Arkansas - 1.0% 1,930 University of Arkansas, University Revenue Bonds (Fayetteville Campus), 5.50%
due 12/01/2018 (c) 2,187
California - 28.0% 3,500 California Pollution Control Financing Authority, PCR, Refunding (Pacific
Gas & Electric), AMT, Series A, 5.35% due 12/01/2016 (b) 3,802
California State Department of Water Resources, Power Supply Revenue Bonds,
Series A:
4,000 5.375% due 5/01/2017 (d) 4,458
3,400 5.25% due 5/01/2020 3,697
3,000 5.375% due 5/01/2022 3,271
1,300 California State, Various Purpose, GO, 5.50% due 4/01/2028 1,419
Golden State Tobacco Securitization Corporation of California, Tobacco
Settlement Revenue Bonds, Series B:
2,000 5.50% due 6/01/2018 2,097
5,000 5.75% due 6/01/2022 5,331
1,600 5.375% due 6/01/2028 (c) 1,696
5,305 Industry, California, Urban Development Agency, Tax Allocation Bonds
(Civic-Recreational-Industrial Redevelopment Project No. 1), Series B,
5% due 5/01/2019 (b) 5,675
Los Angeles, California, Unified School District, GO:
2,000 (Election of 1997), Series F, 5% due 1/01/2028 (c) 2,101
5,780 Series A, 5% due 1/01/2028 (b) 6,071
2,565 Modesto, California, Schools Infrastructure Financing Agency, Special Tax Bonds,
5.50% due 9/01/2036 (a) 2,834
1,750 Sacramento County, California, Sanitation District Financing Authority, Revenue
Refunding Bonds, RIB, Series 366, 9.612% due 12/01/2027 (j) 1,883
San Pablo, California, Joint Powers Financing Authority, Tax Allocation Revenue
Refunding Bonds (b):
2,635 5.66%** due 12/01/2024 960
2,355 5.66%** due 12/01/2025 805
2,355 5.66%** due 12/01/2026 756
2,000 University of California Revenue Bonds (Multiple Purpose Projects), Series Q,
5% due 9/01/2022 (f) 2,124
3,480 West Contra Costa, California, Unified School District, GO, Series C, 5% due
8/01/2021 (c) 3,757
Colorado - 6.4% Aurora, Colorado, COP (a):
2,440 5.75% due 12/01/2015 2,767
2,560 5.75% due 12/01/2016 2,902
2,730 5.75% due 12/01/2017 3,088
2,890 5.75% due 12/01/2018 3,269
Portfolio Abbreviations
To simplify the listings of MuniHoldings Insured Fund,
Inc.'s portfolio holdings in the Schedule of Investments,
we have abbreviated the names of many of the securities
according to the list below.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
EDA Economic Development Authority
GO General Obligation Bonds
HDA Housing Development Authority
HFA Housing Finance Agency
PCR Pollution Control Revenue Bonds
RIB Residual Interest Bonds
VRDN Variable Rate Demand Notes
MuniHoldings Insured Fund, Inc.
Schedule of Investments as of January 31, 2005 (concluded) (in Thousands)
Face
State Amount Municipal Bonds Value
Connecticut - 7.2% $ 8,000 Connecticut State HFA Revenue Bonds (Housing Mortgage Finance Program), AMT,
Series D-2, 5.15% due 11/15/2022 (b) $ 8,292
5,000 Connecticut State Health and Educational Facilities Authority Revenue Bonds
(Connecticut State University System) Series E, 5% due 11/01/2033 (c) 5,218
Florida - 3.3% 3,500 Dade County, Florida, Water and Sewer System Revenue Bonds, 5.25% due
10/01/2021 (c) 3,739
2,500 Escambia County, Florida, Health Facilities Authority, Health Facility
Revenue Bonds (Florida Health Care Facility Loan), 5.95% due 7/01/2020 (a) 2,538
Illinois - 15.2% Chicago, Illinois, GO (c):
5,000 5.50% due 1/01/2021 5,445
2,790 Series A, 6% due 1/01/2018 3,201
2,000 Series A, 6% due 1/01/2019 2,295
3,175 Series A, 6% due 1/01/2020 3,640
4,300 Chicago, Illinois, O'Hare International Airport Revenue Bonds, 3rd Lien, AMT,
Series B-2, 6% due 1/01/2029 (d) 4,833
3,500 Chicago, Illinois, Parking District, GO, Series A, 5.75% due 1/01/2017 (c) 3,959
4,500 Illinois State, GO, First Series, 6% due 1/01/2018 (c) 5,082
45 Lake, Cook, Kane, and McHenry Counties, Illinois, Community United School
District, GO, 5.75% due 12/01/2019 (c) 51
Louisiana - 1.7% 3,030 Louisiana Public Facilities Authority, Mortgage Revenue Refunding Bonds (Baton
Rouge General Medical Center Project), 5.25% due 7/01/2033 (b)(h) 3,219
Massachusetts - 5.1% 65 Massachusetts State, GO, Refunding, Series D, 5.375% due 8/01/2012 (b)(g) 73
1,415 Massachusetts State, HFA, Housing Development Revenue Refunding Bonds, AMT,
Series A, 5.15% due 6/01/2011 (b) 1,451
2,440 Massachusetts State, HFA, Rental Housing Mortgage Revenue Bonds, AMT, Series C,
5.50% due 7/01/2032 (f) 2,532
5,000 Massachusetts State Special Obligation Dedicated Tax Revenue Bonds, 5.25% due
1/01/2025 (c) 5,469
Michigan - 5.3% 2,035 Boyne City, Michigan, Public School District, GO, 5.75% due 5/01/2009 (c)(g) 2,270
1,000 Detroit, Michigan, Sewer Disposal Revenue Bonds, Senior Lien, VRDN, Series A,
1.84% due 7/01/2033 (e)(f) 1,000
Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds, AMT (d):
1,200 (Detroit Edison Company Project), Series A, 5.50% due 6/01/2030 1,287
3,500 (Detroit Edison Company Project), Series C, 5.65% due 9/01/2029 3,743
1,500 (Detroit Edison Pollution), Series B, 5.65% due 9/01/2029 1,604
Minnesota - 2.4% 4,015 Sauk Rapids, Minnesota, Independent School District Number 47, GO, Series A,
5.65% due 2/01/2019 (b) 4,529
Mississippi - 0.7% 1,250 Mississippi Business Finance Corporation, Mississippi, PCR, Refunding (System
Energy Resources Inc. Project), 5.875% due 4/01/2022 1,254
Missouri - 7.7% 2,000 Cape Girardeau, Missouri, School District Number 063, GO (Missouri Direct
Deposit Program), 5.50% due 3/01/2018 (c) 2,212
Mehlville, Missouri, School District Number R-9, COP (f):
1,570 (Missouri Capital Improvement Projects), 5.50% due 9/01/2015 1,770
2,610 (Missouri Capital Improvement Projects), 5.50% due 9/01/2018 2,936
1,925 Series A, 5.50% due 3/01/2014 2,159
2,175 Series A, 5.50% due 3/01/2015 2,429
1,170 Series A, 5.50% due 3/01/2016 1,305
1,500 Series A, 5.50% due 3/01/2017 1,673
Nebraska - 2.1% Omaha Convention Hotel Corporation, Nebraska, Convention Center Revenue Bonds,
First Tier, Series A (a):
1,585 5.50% due 4/01/2020 1,776
2,000 5.50% due 4/01/2021 2,241
Nevada - 2.4% 4,000 Las Vegas New Convention and Visitors Authority Revenue Bonds, 5.75% due
7/01/2018 (a) 4,492
New Jersey - 9.1% New Jersey EDA, Cigarette Tax Revenue Bonds:
5,295 5.75% due 6/15/2029 5,621
3,800 5.75% due 6/15/2034 4,206
6,700 New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A, 5.25% due
7/01/2033 (b) 7,237
New York - 25.5% 10,000 Nassau Health Care Corporation, New York, Health System Revenue Bonds, 5.75%
due 8/01/2009 (f)(g) 11,425
New York City, New York, GO, Refunding:
3,090 Series C, 5.875% due 8/01/2006 (b)(g) 3,296
3,160 Series C, 5.875% due 2/01/2016 (b) 3,373
7,500 Series G, 5.75% due 2/01/2006 (f)(g) 7,860
7,085 New York City, New York, GO, Series G, 5.75% due 10/15/2007 (f)(g) 7,761
3,380 New York City, New York, Sales Tax Asset Receivable Corporation Revenue Bonds,
Series A, 5.25% due 10/15/2027 (a) 3,691
2,645 New York State Dormitory Authority Revenue Bonds (School Districts Financing
Program), Series D, 5.25% due 10/01/2023 (b) 2,921
Tobacco Settlement Financing Corporation of New York Revenue Bonds, Series C-1:
4,900 5.50% due 6/01/2017 5,399
2,000 5.50% due 6/01/2021 2,211
Oregon - 0.9% 1,400 Portland, Oregon, Urban Renewal and Redevelopment Tax Allocation Bonds
(Oregon Convention Center), Series A, 5.75% due 6/15/2015 (a) 1,589
Pennsylvania - 10.6% 3,900 Pennsylvania State Higher Educational Facilities Authority, State System of
Higher Education Revenue Bonds, Series O, 5.125% due 6/15/2024 (a) 4,087
6,045 Philadelphia, Pennsylvania, Airport Revenue Bonds (Philadelphia Airport System),
AMT, Series B, 5.50% due 6/15/2017 (c) 6,428
4,930 Philadelphia, Pennsylvania, School District, GO, Series A, 5.25% due
4/01/2015 (b) 5,347
1,800 Washington County, Pennsylvania, Capital Funding Authority Revenue Bonds
(Capital Projects and Equipment Program), 6.15% due 12/01/2029 (a) 1,913
1,885 York County, Pennsylvania, School of Technology Authority, Lease Revenue
Refunding Bonds, 5.50% due 2/15/2022 (c) 2,132
Rhode Island - 4.7% 5,000 Providence, Rhode Island, Redevelopment Agency Revenue Refunding Bonds
(Public Safety and Municipal Buildings), Series A, 5.75% due 4/01/2019 (a) 5,640
2,870 Rhode Island State Health and Educational Building Corporation Revenue Bonds
(Rhode Island School of Design), Series D, 5.50% due 8/15/2031 (d) 3,142
South Carolina - 0.9% 1,525 Medical University Hospital Authority, South Carolina, Mortgage Hospital
Facilities, Revenue Refunding Bonds, Series A, 5.25% due 2/15/2025 (b)(h) 1,653
Tennessee - 3.2% Tennessee HDA, Revenue Refunding Bonds (Homeownership Program), AMT, Series A (f):
3,040 5.25% due 7/01/2022 3,188
2,795 5.35% due 1/01/2026 2,904
Texas - 7.6% 2,250 Austin, Texas, Convention Center Revenue Bonds (Convention Enterprises Inc.),
Trust Certificates, Second Tier, Series B, 6% due 1/01/2023 2,408
8,000 Dallas-Fort Worth, Texas, International Airport Revenue Bonds, AMT, Series A,
5.50% due 11/01/2033 (b) 8,561
2,961 Houston, Texas, Community College System, Participation Interests, COP
(Alief Center Project), 5.75% due 8/15/2022 (b) 3,264
Virginia - 2.4% 4,445 Virginia State, HDA, Commonwealth Mortgage Revenue Bonds, Series J, Sub-Series J-1,
5.20% due 7/01/2019 (b) 4,528
Washington - 4.7% 4,000 Bellevue, Washington, GO, Refunding, 5.50% due 12/01/2039 (b) 4,428
2,310 Chelan County, Washington, Public Utility District Number 001, Consolidated
Revenue Bonds (Chelan Hydro System), AMT, Series A, 5.45% due 7/01/2037 (a) 2,436
1,810 Snohomish County, Washington, Public Utility District Number 001, Electric Revenue
Bonds, 5.50% due 12/01/2022 (f) 2,047
West Virginia - 2.8% 5,000 West Virginia State Housing Development Fund, Housing Finance Revenue Refunding
Bonds, Series D, 5.20% due 11/01/2021 (b) 5,269
Wisconsin - 0.3% 500 Wisconsin State Health and Educational Facilities Authority Revenue Bonds
(Blood Center of Southeaster Wisconsin Project), 5.50% due 6/01/2024 522
Wyoming - 0.9% 1,500 Wyoming Student Loan Corporation, Student Loan Revenue Refunding Bonds, Series A,
6.20% due 6/01/2024 1,629
Puerto Rico - 1.0% 1,870 Puerto Rico Public Buildings Authority, Government Facilities Revenue Refunding
Bonds, Series D, 5.25% due 7/01/2036 1,973
Total Municipal Bonds (Cost - $291,894) - 165.1% 310,587
Shares
Held Short-Term Securities
1,421 Merrill Lynch Institutional Tax-Exempt Fund (i) 1,421
Total Short-Term Securities (Cost - $1,421) - 0.7% 1,421
Total Investments (Cost - $293,315*) - 165.8% 312,008
Other Assets Less Liabilities - 5.4% 10,151
Preferred Stock, at Redemption Value - (71.2%) (134,023)
------------
Net Assets Applicable to Common Stock - 100.0% $ 188,136
============
*The cost and unrealized appreciation (depreciation) of investments
as of January 31, 2005, computed for federal
income tax purposes, were as follows:
(in Thousands)
Aggregate cost $ 293,315
==========
Gross unrealized appreciation $ 18,927
Gross unrealized depreciation (234)
----------
Net unrealized appreciation $ 18,693
==========
**Represents a zero coupon bond; the interest rate shown reflects
the effective yield at the time of purchase by the Fund.
(a)AMBAC Insured.
(b)MBIA Insured.
(c)FGIC Insured.
(d)XL Capital Insured.
(e)Security has a maturity of more than one year, but has variable
rate and demand features, which qualify it as a short-term security.
The rate disclosed is that currently in effect. This rate changes
periodically based upon prevailing market rates.
(f)FSA Insured.
(g)Prerefunded.
(h)FHA Insured.
(i)Investments in companies considered to be an affiliate of the
Fund (such companies are defined as "Affiliated Companies" in
Section 2(a)(3) of the Investment Company Act of 1940) were as
follows:
(in Thousands)
Net Dividend
Affiliate Activity Income
Merrill Lynch
Institutional Tax-Exempt Fund 1,100 $ 42
(j)The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
Forward interest rate swaps outstanding as of January 31, 2005 were as follows:
(in Thousands)
Notional Unrealized
Amount Depreciation
Receive a variable rate equal to
7-Day Bond Market Association
Municipal Swap Index Rate and
pay a fixed rate of 3.68%
Broker, Morgan Stanley Capital
Services, Inc.
Expires March 2015 $ 15,000 $ (201)
Item 2 - Controls and Procedures
2(a) - The registrant's certifying officers have reasonably designed
such disclosure controls and procedures to ensure material
information relating to the registrant is made known to us by others
particularly during the period in which this report is being
prepared. The registrant's certifying officers have determined that
the registrant's disclosure controls and procedures are effective
based on our evaluation of these controls and procedures as of a
date within 90 days prior to the filing date of this report.
2(b) - There were no changes in the registrant's internal control
over financial reporting (as defined in Rule 30a-3(d) under the Act
(17 CFR 270.30a-3(d)) that occurred during the last fiscal quarter
of the period covered by this report that has materially affected,
or is reasonably likely to materially affect, the registrant's
internal control over financial reporting.
Item 3 - Exhibits
Certifications - Attached hereto
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.
MuniHoldings Insured Fund, Inc.
By: /s/ Robert C. Doll, Jr.
Robert C. Doll, Jr.,
President
MuniHoldings Insured Fund, Inc.
Date: March 21, 2005
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/ Robert C. Doll, Jr.
Robert C. Doll, Jr.,
President
MuniHoldings Insured Fund, Inc.
Date: March 21, 2005
By: /s/ Donald C. Burke
Donald C. Burke,
Chief Financial Officer
MuniHoldings Insured Fund, Inc.
Date: March 21, 2005