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., Chief Executive
Officer, 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: 04/30/06
Date of reporting period: 05/01/05 - 07/31/05
Item 1 - Schedule of Investments
MuniHoldings Insured Fund, Inc.
Schedule of Investments as of July 31, 2005 (in Thousands)
Face
State Amount Municipal Bonds Value
Arizona - 2.1% $ 3,590 Pinal County, Arizona, COP, 5.25% due 12/01/2023 $ 3,790
Arkansas - 2.2% 3,710 Arkansas State Development Finance Authority, M/F Mortgage Revenue Refunding
Bonds, DRIVERS, Series 964Z, 7.793% due 6/01/2010 (b)(e)(i) 4,098
California - 36.6% 3,250 California Pollution Control Financing Authority, PCR, Refunding, DRIVERS, AMT,
Series 878Z, 7.778% due 12/01/2009 (b)(i) 3,798
California State Department of Water Resources, Power Supply Revenue Bonds,
Series A:
4,000 5.375% due 5/01/2017 (d) 4,382
3,400 5.25% due 5/01/2020 3,652
3,325 5.375% due 5/01/2022 3,596
2,000 California State Public Works Board, Lease Revenue Bonds (Department of General
Services - Capitol East End Complex), Series A, 5% due 12/01/2027 (a) 2,083
1,300 California State, Various Purpose, GO, 5.50% due 4/01/2028 1,432
East Side Union High School District, California, Santa Clara County, GO
(Election of 2002):
1,800 Series B, 5% due 8/01/2027 (c) 1,895
1,335 Series D, 5% due 8/01/2021 (d) 1,427
5,155 Series D, 5% due 8/01/2029 (d) 5,450
3,000 Golden State Tobacco Securitization Corporation of California, Tobacco
Settlement Revenue Bonds, Series B, 5.75% due 6/01/2008 (g) 3,230
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) 5,601
Los Angeles, California, Unified School District, GO:
2,000 (Election of 1997), Series F, 5% due 1/01/2028 (c) 2,111
4,940 Series A, 5% due 1/01/2028 (b) 5,214
2,565 Modesto, California, Schools Infrastructure Financing Agency, Special Tax Bonds,
5.50% due 9/01/2036 (a) 2,841
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
DRIVERS Derivative Inverse Tax-Exempt Receipts
EDA Economic Development Authority
GO General Obligations Bonds
HDA Housing Development Authority
HFA Housing Finance Agency
IDA Industrial Development Authority
PCR Pollution Control Revenue Bonds
VRDN Variable Rate Demand Notes
MuniHoldings Insured Fund, Inc.
Schedule of Investments as of July 31, 2005 (concluded) (in Thousands)
Face
State Amount Municipal Bonds Value
California $ 2,000 Sacramento County, California, Sanitation District, Financing Authority,
(concluded) Revenue Refunding Bonds, Series A, 5.875% due 12/01/2027 $ 2,040
5,005 San Francisco, California, City & County, GO (California Academy of Sciences
Improvements), Series E, 5% due 6/15/2023 (b) 5,314
1,265 San Jose, California, GO (Libraries, Parks and Public Safety Projects), 5%
due 9/01/2030 (b) 1,330
San Pablo, California, Joint Powers Financing Authority, Tax Allocation
Revenue Refunding Bonds (b):
2,635 5.66%* due 12/01/2024 994
2,355 5.66%* due 12/01/2025 835
2,355 5.66%* due 12/01/2026 789
2,800 Tustin, California, Unified School District, Senior Lien Special Tax Bonds
(Community Facilities District No. 97-1), Series A, 5% due 9/01/2038 (f) 2,898
2,000 University of California Revenue Bonds (Multiple Purpose Projects), Series Q,
5% due 9/01/2022 (f) 2,107
3,480 West Contra Costa, California, Unified School District, GO, Series C, 5% due
8/01/2021 (c) 3,697
2,435 William S. Hart Union High School District, California, Capital Appreciation,
GO (Election of 2001), Series B, 4.72%* due 9/01/2025 (f) 933
Colorado - 6.4% Aurora, Colorado, COP (a):
2,440 5.75% due 12/01/2015 2,704
2,560 5.75% due 12/01/2016 2,837
2,730 5.75% due 12/01/2017 3,022
2,890 5.75% due 12/01/2018 3,197
Connecticut - 2.8% 5,000 Connecticut State Health and Educational Facilities Authority Revenue Bonds
(Connecticut State University System), Series E, 5% due 11/01/2033 (c) 5,241
Florida - 0.4% 255 Escambia County, Florida, Health Facilities Authority, Health Facility Revenue
Bonds (Florida Health Care Facility Loan), 5.95% due 7/01/2020 (a) 257
2,225 Miami-Dade County, Florida, Subordinate Special Obligation Revenue Bonds,
Series A, 5.240%* due 10/01/2037 (b) 423
Georgia - 1.2% 2,000 Augusta, Georgia, Water and Sewer Revenue Bonds, 5.25% due 10/01/2034 (f) 2,166
Illinois - 11.9% Chicago, Illinois, GO (c):
1,270 5.50% due 1/01/2021 1,354
7,965 Series A, 6% due 7/01/2010 (g) 8,993
2,150 Chicago, Illinois, O'Hare International Airport Revenue Bonds, DRIVERS, AMT,
Series 845-Z, 9.319% due 1/01/2012 (b)(d)(i) 2,703
2,965 5.75% due 1/01/2011 (g) 3,309
535 5.75% due 1/01/2017 590
4,500 Illinois State, GO, First Series, 6% due 1/01/2018 (c) 4,969
45 Lake, Cook, Kane and McHenry Counties, Illinois, Community Unit School District
No. 220, GO, 5.75% due 12/01/2019 (c) 50
Indiana - 1.2% 2,000 Indiana Transportation Finance Authority, Highway Revenue Bonds, Series A, 5.25%
due 6/01/2029 (c) 2,152
Massachusetts - 11.0% 3,565 Massachusetts Bay Transportation Authority, Sales Tax Revenue Refunding Bonds,
Senior Series A, 5% due 7/01/2035 3,675
1,415 Massachusetts State, HFA, Housing Development Revenue Refunding Bonds, AMT,
Series A, 5.15% due 6/01/2011 (b) 1,433
Massachusetts State, HFA, Rental Housing Mortgage Revenue Bonds, AMT (f):
3,300 Series A, 5.15% due 7/01/2026 3,348
2,440 Series C, 5.50% due 7/01/2032 2,538
3,685 Massachusetts State School Building Authority, Dedicated Sales Tax Revenue
Bonds, Series A, 5% due 8/15/2030 (f) 3,909
5,000 Massachusetts State Special Obligation Dedicated Tax Revenue Bonds, 5.25% due
1/01/2014 (c)(g) 5,526
Michigan - 8.0% 2,035 Boyne City, Michigan, Public School District, GO, 5.75% due 5/01/2009 (c)(g) 2,219
7,900 Detroit, Michigan, Sewer Disposal Revenue Bonds, Senior Lien, VRDN, Series A,
2.22% due 7/01/2033 (f)(h) 7,900
Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds,
AMT (d):
1,500 (Detroit Edison Pollution), Series B, 5.65% due 9/01/2029 1,606
1,750 DRIVERS, Series 857Z, 8.378% due 3/01/2010 (i) 1,996
1,000 DRIVERS, Series 858Z, 8.079% due 12/01/2011 (i) 1,154
Minnesota - 2.4% 4,015 Sauk Rapids, Minnesota, Independent School District Number 47, GO, Series A,
5.65% due 2/01/2019 (b) 4,416
Missouri - 6.8% 2,000 Cape Girardeau, Missouri, School District Number 063, GO (Missouri Direct Deposit
Program), 5.50% due 3/01/2018 (c) 2,167
Mehlville, Missouri, School District Number R-9, COP (f):
2,610 (Missouri Capital Improvement Projects), 5.50% due 9/01/2012 (g) 2,927
1,925 Series A, 5.50% due 3/01/2014 2,112
2,175 Series A, 5.50% due 3/01/2015 2,378
1,170 Series A, 5.50% due 3/01/2016 1,279
1,500 Series A, 5.50% due 3/01/2017 1,639
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 1,742
2,000 5.50% due 4/01/2021 2,199
New Jersey - 12.4% New Jersey EDA, Cigarette Tax Revenue Bonds:
5,295 5.75% due 6/15/2029 5,675
3,800 5.75% due 6/15/2034 4,227
6,700 New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A, 5.25% due
7/01/2033 (b) 7,250
5,500 New Jersey State Turnpike Authority, Turnpike Revenue Bonds, Series C, 5% due
1/01/2030 (f) 5,830
New York - 26.6% 1,185 Metropolitan Transportation Authority, New York, Revenue Bonds, Series B, 5%
due 11/15/2030 (a) 1,256
10,000 Nassau Health Care Corporation, New York, Health System Revenue Bonds, 5.75%
due 8/01/2009 (f)(g) 11,181
New York City, New York, GO, Refunding:
5,865 Series C, 5.875% due 8/01/2006 (b)(g) 6,135
385 Series C, 5.875% due 2/01/2016 (b) 402
7,500 Series G, 5.75% due 2/01/2017 (f) 7,720
7,085 New York City, New York, GO, Series G, 5.75% due 10/15/2007 (f)(g) 7,588
4,095 New York City, New York, Sales Tax Asset Receivable Corporation Revenue Bonds,
Series A, 5.25% due 10/15/2027 (a) 4,473
2,645 New York State Dormitory Authority Revenue Bonds (School Districts Financing
Program), Series D, 5.25% due 10/01/2023 (b) 2,879
Tobacco Settlement Financing Corporation of New York Revenue Bonds, Series C-1:
4,900 5.50% due 6/01/2017 5,389
2,000 5.50% due 6/01/2021 2,197
Oregon - 0.8% 1,400 Portland, Oregon, Urban Renewal and Redevelopment Tax Allocation Bonds (Oregon
Convention Center), Series A, 5.75% due 6/15/2015 (a) 1,557
Pennsylvania - 10.8% 3,370 Lehigh County, Pennsylvania, IDA, PCR, Refunding (Pennsylvania Power and Light
Utilities Corporation Project), 4.75% due 2/15/2027 (c) 3,443
3,900 Pennsylvania State Higher Educational Facilities Authority, State System of
Higher Education Revenue Bonds, Series O, 5.125% due 6/15/2024 (a) 4,030
6,045 Philadelphia, Pennsylvania, Airport Revenue Bonds (Philadelphia Airport System),
AMT, Series B, 5.50% due 6/15/2017 (c) 6,357
2,015 Seneca Valley, Pennsylvania, School District, GO, 5% due 1/01/2019 (c) 2,175
1,800 Washington County, Pennsylvania, Capital Funding Authority Revenue Bonds
(Capital Projects and Equipment Program), 6.15% due 12/01/2029 (a) 1,926
1,885 York County, Pennsylvania, School of Technology Authority, Lease Revenue
Refunding Bonds, 5.50% due 2/15/2022 (c) 2,088
Rhode Island - 4.7% 5,000 Providence, Rhode Island, Redevelopment Agency, Revenue Refunding Bonds
(Public Safety and Municipal Buildings), Series A, 5.75% due 4/01/2010 (a)(g) 5,585
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) 3,162
South Carolina - 0.9% 1,525 Medical University Hospital Authority, South Carolina, FHA-Insured Mortgage
Hospital Facilities, Revenue Refunding Bonds, Series A, 5.25% due 2/15/2025 (b)(e) 1,642
Tennessee - 3.1% Tennessee HDA, Revenue Refunding Bonds (Homeownership Program), AMT, Series A (f):
2,890 5.25% due 7/01/2022 3,000
2,655 5.35% due 1/01/2026 2,755
Texas - 5.5% 1,900 Bell County, Texas, Health Facilities Development Corporation, Hospital
Revenue Bonds (Scott & White Memorial Hospital), VRDN, Series B-2, 2.26% due
8/15/2029 (b)(h) 1,900
4,000 Dallas-Fort Worth, Texas, International Airport Revenue Bonds, DRIVERS, AMT,
Series 778-Z, 8.32% due 11/01/2011 (b)(i) 4,580
2,913 Houston, Texas, Community College System, Participation Interests, COP (Alief
Center Project), 5.75% due 8/15/2022 (b) 3,140
500 North Central Texas, Health Facility Development Corporation Revenue Bonds
(Methodist Hospitals-Dallas), VRDN, Series B, 2.24% due 10/01/2015 (b)(h) 500
Virginia - 0.7% 1,225 Virginia State HDA, Commonwealth Mortgage Revenue Bonds, Series J, Sub-Series J-1,
5.20% due 7/01/2019 (b) 1,233
Washington - 4.8% 4,000 Bellevue, Washington, GO, Refunding, 5.50% due 12/01/2039 (b) 4,448
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) 2,445
1,810 Snohomish County, Washington, Public Utility District Number 001, Electric
Revenue Bonds, 5.50% due 12/01/2022 (f) 2,004
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) 5,183
Wisconsin - 0.3% 500 Wisconsin State Health and Educational Facilities Authority Revenue Bonds (Blood
Center of Southeastern Wisconsin Project), 5.50% due 6/01/2024 528
Wyoming - 0.9% 1,500 Wyoming Student Loan Corporation, Student Loan Revenue Refunding Bonds, Series A,
6.20% due 6/01/2024 1,613
Puerto Rico - 3.1% 3,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series RR, 5% due
7/01/2027 (d) 3,734
1,870 Puerto Rico Public Buildings Authority, Government Facilities, Revenue Refunding
Bonds, Series D, 5.25% due 7/01/2036 1,979
Total Municipal Bonds (Cost - $305,316) - 172.5% 318,876
Shares
Held Short-Term Securities
721 Merrill Lynch Institutional Tax-Exempt Fund (j) 721
Total Short-Term Securities (Cost - $721) - 0.4% 721
Total Investments (Cost - $306,037**) - 172.9% 319,597
Liabilities in Excess of Other Assets - (0.4%) (720)
Preferred Stock, at Redemption Value - (72.5%) (134,059)
-----------
Net Assets Applicable to Common Stock - 100.0% $ 184,818
===========
* Represents a zero coupon bond; the interest rate shown reflects the effective yield at
the time of purchase by the Fund.
** The cost and unrealized appreciation (depreciation) of investments as of July 31, 2005,
as computed for federal income tax purposes, were as follows:
(in Thousands)
Aggregate cost $ 306,037
==============
Gross unrealized appreciation $ 13,832
Gross unrealized depreciation (272)
--------------
Net unrealized appreciation $ 13,560
==============
(a) AMBAC Insured.
(b) MBIA Insured.
(c) FGIC Insured.
(d) XL Capital Insured.
(e) FHA Insured.
(f) FSA Insured.
(g) Prerefunded.
(h) Security may have a maturity of more than one year at time of issuance, but has variable
rate and demand features that qualify it as a short-term security. The rate disclosed is
that currently in effect. This rate changes periodically based upon prevailing market rates.
(i) The rate disclosed is that currently in effect. This rate changes periodically and inversely
based upon prevailing market rates.
(j) Investments in companies considered to be an affiliate of the Fund, for purposes of 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 600 $14
Financial futures contracts sold as of July 31, 2005 were as follows:
(in Thousands)
Number of Expiration Face Unrealized
Contracts Issue Date Value Appreciation
150 10-Year
U.S. Treasury Bond September 2005 $16,851 $203
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.,
Chief Executive Officer
MuniHoldings Insured Fund, Inc.
Date: September 23, 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.,
Chief Executive Officer
MuniHoldings Insured Fund, Inc.
Date: September 23, 2005
By: /s/ Donald C. Burke
-----------------------
Donald C. Burke,
Chief Financial Officer
MuniHoldings Insured Fund, Inc.
Date: September 23, 2005