<PAGE>
SUPPLEMENT DATED SEPTEMBER 1, 1998
TO THE PROSPECTUS DATED MAY 1, 1998
HIGH YIELD PORTFOLIO
U.S. REAL ESTATE PORTFOLIO
EMERGING MARKETS DEBT PORTFOLIO
ASIAN EQUITY PORTFOLIO
PORTFOLIOS OF THE
MORGAN STANLEY UNIVERSAL FUNDS, INC. (THE "FUND")
P.O. BOX 2798
BOSTON, MASSACHUSETTS
02208-2798
_____________
The Prospectus is hereby amended and supplemented to reflect a change in
the portfolio management of the Asian Equity Portfolio. Timothy Jensen and
Ashutosh Sinha now share responsibility for managing the assets of the Asian
Equity Portfolio with Vinod Sethi. Accordingly, the last paragraph under
"PORTFOLIO MANAGERS." on page 25 is hereby deleted and replaced with the
following:
ASIAN EQUITY PORTFOLIO - Vinod Sethi, Timothy Jensen and Ashutosh Sinha.
Vinod Sethi joined MSAM in 1989 and since then, has been actively involved
in MSAM's emerging market group. Mr. Sethi is a Managing Director of Morgan
Stanley and MSAM and is MSAM's Chief Investment Officer for the Asian
region. He received his undergraduate degree in Chemical Engineering from
I.I.T. (Bombay) and his M.B.A. from New York University School of Business.
Timothy Jensen joined MSAM in 1998. He is a Principal of Morgan Stanley
and MSAM and a member of MSAM's emerging markets group focusing primarily
on the East Asian markets. Prior to joining MSAM, he was a Partner at
Ardsley Partners, where he managed a portion of the emerging markets
assets. Prior to that, he was a Vice President at Bankers Trust Company
where he was responsible for a Latin American equity portfolio. He
graduated from Harvard College with a B.A. in History and received an
M.B.A. in Finance from UCLA. Ashutosh Sinha joined MSAM in 1995. He is a
Vice President of Morgan Stanley and MSAM and a member of MSAM's emerging
markets group focusing primarily on the East Asian and Middle Eastern
markets. Prior to joining MSAM, he spent two years at SBI Funds Management
Ltd., where he was an analyst for the India Magnum Fund. Previous to that,
he worked for three years as a consultant for Citicorp Overseas Software
Ltd. He graduated from I.I.T. (Kanpur) with a degree in Electrical
Engineering and received an M.B.A. from the Indian Institute of Management,
Calcutta. Mr. Sethi has had primary responsibility for managing the Asian
Equity Portfolio since April 1998 and Mr. Jensen and Mr. Sinha have shared
primary responsibility for managing the Asian Equity Portfolio since
August 1, 1998.
_____________
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
<PAGE>
SUPPLEMENT DATED SEPTEMBER 1, 1998
TO THE PROSPECTUS DATED MAY 1, 1998
FIXED INCOME PORTFOLIO
HIGH YIELD PORTFOLIO
EQUITY GROWTH PORTFOLIO
VALUE PORTFOLIO
MID CAP VALUE PORTFOLIO
GLOBAL EQUITY PORTFOLIO
INTERNATIONAL MAGNUM PORTFOLIO
EMERGING MARKETS EQUITY PORTFOLIO
ASIAN EQUITY PORTFOLIO
PORTFOLIOS OF THE
MORGAN STANLEY UNIVERSAL FUNDS, INC. (THE "FUND")
P.O. BOX 2798
BOSTON, MASSACHUSETTS
02208-2798
_____________
The Prospectus is hereby amended and supplemented to reflect a change in
the portfolio management of the Asian Equity Portfolio. Timothy Jensen and
Ashutosh Sinha now share responsibility for managing the assets of the Asian
Equity Portfolio with Vinod Sethi. Accordingly, the last paragraph under
"PORTFOLIO MANAGERS." on page 30 is hereby deleted and replaced with the
following:
ASIAN EQUITY PORTFOLIO - Vinod Sethi, Timothy Jensen and Ashutosh Sinha.
Vinod Sethi joined MSAM in 1989 and since then, has been actively involved
in MSAM's emerging market group. Mr. Sethi is a Managing Director of Morgan
Stanley and MSAM and is MSAM's Chief Investment Officer for the Asian
region. He received his undergraduate degree in Chemical Engineering from
I.I.T. (Bombay) and his M.B.A. from New York University School of Business.
Timothy Jensen joined MSAM in 1998. He is a Principal of Morgan Stanley
and MSAM and a member of MSAM's emerging markets group focusing primarily
on the East Asian markets. Prior to joining MSAM, he was a Partner at
Ardsley Partners, where he managed a portion of the emerging markets
assets. Prior to that, he was a Vice President at Bankers Trust Company
where he was responsible for a Latin American equity portfolio. He
graduated from Harvard College with a B.A. in History and received an
M.B.A. in Finance from UCLA. Ashutosh Sinha joined MSAM in 1995. He is a
Vice President of Morgan Stanley and MSAM and a member of MSAM's emerging
markets group focusing primarily on the East Asian and Middle Eastern
markets. Prior to joining MSAM, he spent two years at SBI Funds Management
Ltd., where he was an analyst for the India Magnum Fund. Previous to that,
he worked for three years as a consultant for Citicorp Overseas Software
Ltd. He graduated from I.I.T. (Kanpur) with a degree in Electrical
Engineering and received an M.B.A. from the Indian Institute of Management,
Calcutta. Mr. Sethi has had primary responsibility for managing the Asian
Equity Portfolio since April 1998 and Mr. Jensen and Mr. Sinha have shared
primary responsibility for managing the Asian Equity Portfolio since
August 1, 1998.
_____________
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
<PAGE>
SUPPLEMENT DATED SEPTEMBER 1, 1998
TO THE PROSPECTUS DATED MAY 1, 1998
U.S. REAL ESTATE PORTFOLIO
GLOBAL EQUITY PORTFOLIO
INTERNATIONAL MAGNUM PORTFOLIO
EMERGING MARKETS EQUITY PORTFOLIO
ASIAN EQUITY PORTFOLIO
PORTFOLIOS OF THE
MORGAN STANLEY UNIVERSAL FUNDS, INC. (THE "FUND")
P.O. BOX 2798
BOSTON, MASSACHUSETTS
02208-2798
_____________
The Prospectus is hereby amended and supplemented to reflect a change in
the portfolio management of the Asian Equity Portfolio. Timothy Jensen and
Ashutosh Sinha now share responsibility for managing the assets of the Asian
Equity Portfolio with Vinod Sethi. Accordingly, the last paragraph under
"PORTFOLIO MANAGERS." on page 23 is hereby deleted and replaced with the
following:
ASIAN EQUITY PORTFOLIO - Vinod Sethi, Timothy Jensen and Ashutosh Sinha.
Vinod Sethi joined MSAM in 1989 and since then, has been actively involved
in MSAM's emerging market group. Mr. Sethi is a Managing Director of Morgan
Stanley and MSAM and is MSAM's Chief Investment Officer for the Asian
region. He received his undergraduate degree in Chemical Engineering from
I.I.T. (Bombay) and his M.B.A. from New York University School of Business.
Timothy Jensen joined MSAM in 1998. He is a Principal of Morgan Stanley
and MSAM and a member of MSAM's emerging markets group focusing primarily
on the East Asian markets. Prior to joining MSAM, he was a Partner at
Ardsley Partners, where he managed a portion of the emerging markets
assets. Prior to that, he was a Vice President at Bankers Trust Company
where he was responsible for a Latin American equity portfolio. He
graduated from Harvard College with a B.A. in History and received an
M.B.A. in Finance from UCLA. Ashutosh Sinha joined MSAM in 1995. He is a
Vice President of Morgan Stanley and MSAM and a member of MSAM's emerging
markets group focusing primarily on the East Asian and Middle Eastern
markets. Prior to joining MSAM, he spent two years at SBI Funds Management
Ltd., where he was an analyst for the India Magnum Fund. Previous to that,
he worked for three years as a consultant for Citicorp Overseas Software
Ltd. He graduated from I.I.T. (Kanpur) with a degree in Electrical
Engineering and received an M.B.A. from the Indian Institute of Management,
Calcutta. Mr. Sethi has had primary responsibility for managing the Asian
Equity Portfolio since April 1998 and Mr. Jensen and Mr. Sinha have shared
primary responsibility for managing the Asian Equity Portfolio since
August 1, 1998.
_____________
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
