<PAGE>
PROSPECTUS -JANUARY 28, 2000
ACTIVE ASSETS
INSTITUTIONAL MONEY TRUST
PREMIER MONEY TRUST
TWO MONEY MARKET FUNDS
OFFERED EXCLUSIVELY TO PARTICIPANTS IN THE
ACTIVE ASSETS ACCOUNT-Registered Trademark- FINANCIAL SERVICE PROGRAM
FOR INFORMATION ON THE ACTIVE ASSETS PROGRAM, READ
THE "CLIENT ACCOUNT AGREEMENT" AND/OR CALL TOLL FREE
(800) 869-3326 OR, IF YOU ARE IN NEW YORK CITY, (212) 392-5000
The Securities and Exchange Commission has not approved or disapproved these
securities or passed upon
the adequacy of this PROSPECTUS. Any representation to the contrary is a
criminal offense.
<PAGE>
CONTENTS
<TABLE>
<S> <C> <C>
Eligible Investors/Overview ............................. 1
The Funds
Active Assets Institutional Money
Trust Investment Objectives... .... 2
Principal Investment
Strategies................... 2
Principal Risks.............. 2
Fees and Expenses............ 3
Active Assets Premier
Money Trust Investment Objectives... .... 5
Principal Investment
Strategies................... 5
Principal Risks.............. 5
Fees and Expenses............ 6
Fund Management................................................. 8
Shareholder Information Pricing Fund Shares.......... 9
How Are Fund Investments
Made?........................ 9
How Are Fund Shares Sold?.... 10
Distributions................ 12
Tax Consequences............. 12
THIS PROSPECTUS CONTAINS IMPORTANT INFORMATION
ABOUT THE FUNDS. PLEASE READ IT CAREFULLY AND
KEEP IT FOR FUTURE REFERENCE.
</TABLE>
<PAGE>
ELIGIBLE INVESTORS/OVERVIEW
Active Assets Institutional Money Trust and Active Assets Premier
Money Trust (each, a "Fund") are two separate money market funds
offered exclusively to participants in Dean Witter Reynolds' Active
Assets Account-Registered Trademark- Financial Service Program (the
"Active Assets Program"). (Dean Witter Reynolds is affiliated with
Morgan Stanley Dean Witter Advisors Inc., the Funds' Investment
Manager.)
The Active Assets Program offers its participants a Dean Witter
brokerage account (an Active Assets Account) that is linked to the
Funds (as well as certain other money market funds participating in
the Active Assets Program), a federally insured bank account, a
Visa-Registered Trademark- debit card and a checking account.
Currently, designated bank accounts are held with Morgan Stanley Dean
Witter Bank, Inc. Both the debit card and the checkwriting privileges
are offered through Bank One, Columbus, N.A. The annual fee normally
charged for participating in the Active Assets Program ($80 for
individuals; $100 for businesses) is currently waived for investors
in the Funds. At any time, Dean Witter Reynolds may change the annual
fee charged and the services provided under the Active Assets
Program. For details on the Active Assets Program, please read the
Client Account Agreement carefully.
The minimum investment amount for Active Assets Institutional Money
Trust is $10,000,000.
The minimum investment amount for Active Assets Premier Money Trust
is $5,000,000.
For details on how investments are made in the Funds, see "How Are
Fund Investments Made?" on p. 9.
1
<PAGE>
[Sidebar]
MONEY MARKET
A MUTUAL FUND HAVING THE GOAL TO SELECT SECURITIES TO PROVIDE CURRENT INCOME
WHILE SEEKING TO MAINTAIN A STABLE SHARE PRICE OF $1.00.
YIELD
THE FUND'S YIELD REFLECTS THE ACTUAL INCOME THE FUND PAYS TO YOU EXPRESSED AS A
PERCENTAGE OF THE FUND'S SHARE PRICE. BECAUSE THE FUND'S INCOME FROM ITS
PORTFOLIO SECURITIES WILL FLUCTUATE, THE INCOME IT IN TURN DISTRIBUTES TO YOU
AND THE FUND'S YIELD WILL VARY.
[End Sidebar]
THE FUNDS
ACTIVE ASSETS INSTITUTIONAL MONEY TRUST
[ICON] INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The Fund is a money market fund that seeks high current income,
preservation of capital and liquidity.
[ICON] PRINCIPAL INVESTMENT STRATEGIES
- --------------------------------------------------------------------------------
The Fund invests in high quality, short-term debt obligations. In
selecting investments, the Fund's "Investment Manager," Morgan
Stanley Dean Witter Advisors Inc., seeks to maintain the Fund's share
price at $1.00. The share price remaining stable at $1.00 means that
the Fund would preserve the principal value of your investment.
The Fund's investments include the following money
market securities:
<TABLE>
<S> <C>
- Commercial paper;
- Corporate obligations;
- Debt obligations of U.S.-regulated banks and instruments
secured by those obligations (including certificates of
deposit);
- Certificates of deposit of savings banks and savings and
loan associations;
- Debt obligations issued or guaranteed as to principal and
interest by the U.S. government, its agencies or
instrumentalities;
- Repurchase agreements (which may be viewed as a type of
secured lending by the Fund); and
- Foreign bank obligations.
</TABLE>
[ICON] PRINCIPAL RISKS
- --------------------------------------------------------------------------------
There is no assurance that the Fund will achieve its investment
objective.
Shares of the Fund are not bank deposits and are not insured or
guaranteed by the FDIC or any other government agency. Although the
Fund seeks to preserve the value of your investment at $1.00 per
share, if it is unable to do so, it is possible to lose money by
investing in the Fund.
2
<PAGE>
[Sidebar]
ANNUAL FUND
OPERATING EXPENSES
THESE EXPENSES ARE DEDUCTED FROM THE FUND'S ASSETS AND ARE BASED ON ANTICIPATED
EXPENSES DURING THE FUND'S FIRST FISCAL YEAR.
[End Sidebar]
CREDIT AND INTEREST RATE RISKS. Principal risks of investing in the
Fund are associated with its debt obligation investments. All debt
obligations, such as bonds, are subject to two types of risk: credit
risk and interest rate risk. Credit risk refers to the possibility
that the issuer of a security will be unable to make interest
payments and/or repay the principal on its debt. Interest rate risk
refers to fluctuations in the value of a debt security resulting from
changes in the general level of interest rates.
The Investment Manager actively manages the Fund's assets to reduce
the risk of losing any principal investment as a result of credit or
interest rate risks. The Fund's assets are reviewed to maintain or
improve creditworthiness. In addition, federal regulations require
money market funds to invest only in debt obligations of high quality
and short-term maturities.
FOREIGN MONEY MARKET SECURITIES. The Fund may invest in U.S. dollar
denominated money market instruments and other short-term debt
obligations issued by foreign banks. Although the Fund will invest in
these securities only if the Investment Manager determines they are
of comparable quality to the Fund's U.S. investments, investing in
securities of foreign issuers involves some additional risks. These
risks may include higher costs of foreign investing, and the
possibility of adverse political, economic or other developments
affecting the issuers of these securities.
[ICON] FEES AND EXPENSES
- --------------------------------------------------------------------------------
The table below briefly describes the fees and expenses that you may
pay if you buy and hold shares of the Fund. The Fund is a no-load
fund. The Fund does not impose any sales charges or distribution and
service (12b-1) fees.
<TABLE>
<S> <C>
ANNUAL FUND OPERATING EXPENSES
- --------------------------------------------------------------------
Management Fee 0.13%
- --------------------------------------------------------------------
Distribution and service (12b-1) fees 0.00%
- --------------------------------------------------------------------
Other expenses(1) 0.07%
- --------------------------------------------------------------------
Total annual Fund operating expenses(2) 0.20%
- --------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
1 "Other expenses" are based on expenses anticipated for the
first complete fiscal year of the Fund.
2 The fees and expenses disclosed above do not reflect that
the Investment Manager has agreed to assume all operating
expenses of the Fund (except for brokerage fees) and to
waive the compensation provided for in its Investment
Management Agreement with the Fund until such time as the
Fund has $50 million of net assets or six months from the
date of commencement of the Fund's operations, whichever
occurs first. However, the fees and expenses disclosed above
do reflect that, thereafter, the Investment Manager has
agreed under its Investment Management Agreement with the
Fund to assume the Fund's operating expenses (except for
brokerage fees) to the extent such operating expenses exceed
on an annualized basis 0.20% of the average daily net assets
of the Fund.
</TABLE>
3
<PAGE>
EXAMPLE
This example is intended to help you compare the cost of investing in
the Fund with the cost of investing in other mutual funds.
The example assumes that you invest $10,000 in the Fund, your
investment has a 5% return each year, and the Fund's operating
expenses remain the same. Although your actual costs may be higher or
lower, the table below shows your costs at the end of each period
based on these assumptions.
<TABLE>
<CAPTION>
1 YEAR 3 YEARS
<S> <C>
-------------------------
$20 $64
-------------------------
</TABLE>
The Fund was recently organized and as of the date of this PROSPECTUS
had no historical performance to report.
4
<PAGE>
[Sidebar]
MONEY MARKET
A MUTUAL FUND HAVING THE GOAL TO SELECT SECURITIES TO PROVIDE CURRENT INCOME
WHILE SEEKING TO MAINTAIN A STABLE SHARE PRICE OF $1.00.
YIELD
THE FUND'S YIELD REFLECTS THE ACTUAL INCOME THE FUND PAYS TO YOU EXPRESSED AS A
PERCENTAGE OF THE FUND'S SHARE PRICE. BECAUSE THE FUND'S INCOME FROM ITS
PORTFOLIO SECURITIES WILL FLUCTUATE, THE INCOME IT IN TURN DISTRIBUTES TO YOU
AND THE FUND'S YIELD WILL VARY.
[End Sidebar]
ACTIVE ASSETS PREMIER MONEY TRUST
[ICON] INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The Fund is a money market fund that seeks high current income,
preservation of capital and liquidity.
[ICON] PRINCIPAL INVESTMENT STRATEGIES
- --------------------------------------------------------------------------------
The Fund invests in high quality, short-term debt obligations. In
selecting investments, the Fund's "Investment Manager," Morgan
Stanley Dean Witter Advisors Inc., seeks to maintain the Fund's share
price at $1.00. The share price remaining stable at $1.00 means that
the Fund would preserve the principal value of your investment.
The Fund's investments include the following money
market securities:
<TABLE>
<S> <C>
- Commercial paper;
- Corporate obligations;
- Debt obligations of U.S.-regulated banks and instruments
secured by those obligations (including certificates of
deposit);
- Certificates of deposit of savings banks and savings and
loan associations;
- Debt obligations issued or guaranteed as to principal and
interest by the U.S. government, its agencies or
instrumentalities;
- Repurchase agreements (which may be viewed as a type of
secured lending by the Fund); and
- Foreign bank obligations.
</TABLE>
[ICON] PRINCIPAL RISKS
- --------------------------------------------------------------------------------
There is no assurance that the Fund will achieve its investment
objective.
Shares of the Fund are not bank deposits and are not insured or
guaranteed by the FDIC or any other government agency. Although the
Fund seeks to preserve the value of your investment at $1.00 per
share, if it is unable to do so, it is possible to lose money by
investing in the Fund.
5
<PAGE>
[Sidebar]
ANNUAL FUND
OPERATING EXPENSES
THESE EXPENSES ARE DEDUCTED FROM THE FUND'S ASSETS AND ARE BASED ON ANTICIPATED
EXPENSES DURING THE FUND'S FIRST FISCAL YEAR.
[End Sidebar]
CREDIT AND INTEREST RATE RISKS. Principal risks of investing in the
Fund are associated with its debt obligation investments. All debt
obligations, such as bonds, are subject to two types of risk: credit
risk and interest rate risk. Credit risk refers to the possibility
that the issuer of a security will be unable to make interest
payments and/or repay the principal on its debt. Interest rate risk
refers to fluctuations in the value of a debt security resulting from
changes in the general level of interest rates.
The Investment Manager actively manages the Fund's assets to reduce
the risk of losing any principal investment as a result of credit or
interest rate risks. The Fund's assets are reviewed to maintain or
improve creditworthiness. In addition, federal regulations require
money market funds to invest only in debt obligations of high quality
and short-term maturities.
FOREIGN MONEY MARKET SECURITIES. The Fund may invest in U.S. dollar
denominated money market instruments and other short-term debt
obligations issued by foreign banks. Although the Fund will invest in
these securities only if the Investment Manager determines they are
of comparable quality to the Fund's U.S. investments, investing in
securities of foreign issuers involves some additional risks. These
risks may include higher costs of foreign investing, and the
possibility of adverse political, economic or other developments
affecting the issuers of these securities.
[ICON] FEES AND EXPENSES
- --------------------------------------------------------------------------------
The table below briefly describes the fees and expenses that you may
pay if you buy and hold shares of the Fund. The Fund is a no-load
fund. The Fund does not impose any sales charges or distribution and
service (12b-1) fees.
<TABLE>
<S> <C>
ANNUAL FUND OPERATING EXPENSES
- --------------------------------------------------------------------
Management Fee 0.24%
- --------------------------------------------------------------------
Distribution and service (12b-1) fees 0.00%
- --------------------------------------------------------------------
Other expenses(1) 0.06%
- --------------------------------------------------------------------
Total annual Fund operating expenses(2) 0.30%
- --------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
1 "Other expenses" are based on expenses anticipated for the
first complete fiscal year of the Fund.
2 The fees and expenses disclosed above do not reflect that
the Investment Manager has agreed to assume all operating
expenses of the Fund (except for brokerage fees) and to
waive the compensation provided for in its Investment
Management Agreement with the Fund until such time as the
Fund has $50 million of net assets or six months from the
date of commencement of the Fund's operations, whichever
occurs first. However, the fees and expenses disclosed above
do reflect that, thereafter, the Investment Manager has
agreed under its Investment Management Agreement with the
Fund to assume the Fund's operating expenses (except for
brokerage fees) to the extent such operating expenses exceed
on an annualized basis 0.30% of the average daily net assets
of the Fund.
</TABLE>
6
<PAGE>
EXAMPLE
This example is intended to help you compare the cost of investing in
the Fund with the cost of investing in other mutual funds.
The example assumes that you invest $10,000 in the Fund, your
investment has a 5% return each year, and the Fund's operating
expenses remain the same. Although your actual costs may be higher or
lower, the table below shows your costs at the end of each period
based on these assumptions.
<TABLE>
<CAPTION>
1 YEAR 3 YEARS
<S> <C>
-------------------------
$31 $97
-------------------------
</TABLE>
The Fund was recently organized and as of the date of this PROSPECTUS
had no historical performance to report.
7
<PAGE>
[Sidebar]
MORGAN STANLEY DEAN WITTER ADVISORS INC.
THE INVESTMENT MANAGER IS WIDELY RECOGNIZED AS A LEADER IN THE MUTUAL FUND
INDUSTRY AND TOGETHER WITH MORGAN STANLEY DEAN WITTER SERVICES COMPANY INC., ITS
WHOLLY-OWNED SUBSIDIARY, HAD APPROXIMATELY $145 BILLION IN ASSETS UNDER
MANAGEMENT OR ADMINISTRATION AS OF DECEMBER 31, 1999.
[End Sidebar]
FUND MANAGEMENT
Each Fund has retained the Investment Manager -- Morgan Stanley Dean
Witter Advisors Inc. -- to provide administrative services, manage
its business affairs and invest its assets, including the placing of
orders for the purchase and sale of portfolio
securities. The Investment Manager is a wholly-owned
subsidiary of Morgan Stanley Dean Witter & Co., a
preeminent global financial services firm that
maintains leading market positions in each of its
three primary businesses: securities, asset
management and credit services. Its main business
office is located at Two World Trade Center, New
York, NY 10048.
Each Fund pays the Investment Manager a monthly
management fee as full compensation for the services
and facilities furnished to the Fund and for Fund
expenses assumed by the Investment Manager,
calculated by applying the following annual rates to
the net assets of the Fund:
<TABLE>
<CAPTION>
INVESTMENT MANAGEMENT FEE
(AS A PERCENT OF FUND'S
FUND AVERAGE DAILY NET ASSETS)
<S> <C>
- --------------------------------------------------------------------------------------------
Active Assets Institutional Money Trust 0.15%
- --------------------------------------------------------------------------------------------
Active Assets Premier Money Trust 0.25%
- --------------------------------------------------------------------------------------------
</TABLE>
The Investment Manager has agreed to assume all operating expenses of each Fund
(except for brokerage fees) and to waive the compensation provided for in each
Investment Management Agreement until such time as the Fund has $50 million of
net assets or six months from the date of commencement of the Fund's operations,
whichever occurs first. Thereafter, the Investment Manager has agreed under each
Investment Management Agreement to assume Fund operating expenses (except for
brokerage fees) to the extent that such operating expenses exceed 0.20% of the
average daily net assets for Active Assets Institutional Money Trust and 0.30%
of the average daily net assets for Active Assets Premier Money Trust, which may
reduce the investment management fee below 0.15% and 0.25%, respectively, of the
Funds' average daily net assets. For example, in the case of Active Assets
Premier Money Trust, if "other expenses" are estimated to be 0.06% of the Fund's
average daily net assets, then the investment management fee rate paid by the
Fund would equal 0.24% of the Fund's average daily net assets. If in the future
"other expenses" decline to 0.05% of the Fund's average daily net assets, the
investment management fee paid by the Fund would equal 0.25% of the Fund's
average daily net assets.
8
<PAGE>
[Sidebar]
CONTACTING A FINANCIAL ADVISOR
IF YOU ARE NEW TO THE
MORGAN STANLEY DEAN
WITTER FAMILY OF FUNDS AND
WOULD LIKE TO CONTACT A
FINANCIAL ADVISOR,
CALL (877) 937-MSDW (TOLL FREE) FOR THE TELEPHONE NUMBER OF THE
MORGAN STANLEY DEAN
WITTER OFFICE NEAREST YOU.
YOU MAY ALSO ACCESS OUR OFFICE LOCATOR ON OUR INTERNET SITE AT:
www.msdw.com/individual/funds
[End Sidebar]
SHAREHOLDER INFORMATION
[ICON] PRICING FUND SHARES
- --------------------------------------------------------------------------------
The price of each Fund's shares, called "net asset value," is based
on the amortized cost of the Fund's portfolio securities. The
amortized cost valuation method involves valuing a debt obligation in
reference to its cost, rather than market forces.
The net asset value per share of each Fund is determined once daily
at 12:00 noon Eastern time on each day that the New York Stock
Exchange is open (or, on days when the New York Stock Exchange closes
prior to 12:00 noon, at such earlier time). Shares will not be priced
on days that the New York Stock Exchange is closed.
[ICON] HOW ARE FUND INVESTMENTS MADE?
- --------------------------------------------------------------------------------
Cash balances in your Active Assets Account that are not invested in
securities will be automatically invested in shares of the Fund of
your choice on each day that the New York Stock Exchange is open for
business. You may select any fund offered for investment to Active
Asset Account participants for this option, including the Funds and
Active Assets Money Trust, Active Assets Tax-Free Trust, Active
Assets California Tax-Free Trust and Active Assets Government
Securities Trust. In each case, please read the respective fund's
prospectus carefully prior to making an investment decision.
Alternatively, you may choose to have your cash balances deposited in
a federally insured bank account selected by Dean Witter Reynolds.
Currently, designated bank accounts are held with Morgan Stanley Dean
Witter Bank, Inc. You may change your selection at any time by
notifying your Morgan Stanley Dean Witter Financial Advisor.
WIRING MONEY TO YOUR ACTIVE ASSETS ACCOUNT
To purchase Fund shares by wiring federal funds to your Active Assets
Account, contact your Morgan Stanley Dean Witter Financial Advisor.
If your wire is received prior to 12:00 noon Eastern time, your money
will be invested in shares of the selected Fund on that day at the
Fund's share price calculated on that day.
AUTOMATIC PURCHASES
Your Active Assets Account will be reviewed on each business day to
determine whether the account has a cash balance as a result of any
credits accrued that day. Credits to your account may arise, for
example, from sales of securities or from direct cash payments into
the account. Debits to your account may arise from purchases of
securities, margin calls, other account charges,
Visa-Registered Trademark- debit card purchases or cash advances, and
any
9
<PAGE>
checks written against the account. The cash balance, reduced by any
debits to your Active Assets Account incurred that day, will be used
to purchase shares of your selected Fund on the next business day at
the Fund's share price calculated on that next day. However, if you
make a cash payment into your Active Assets Account (by check) after
your Financial Advisor's deadline for processing checks has passed,
then investment in the Fund may not occur until the second business
day after the payment is made (at the share price calculated on that
day).
ALL PURCHASES
You begin earning dividends the same day your Fund shares are
purchased.
[ICON] HOW ARE FUND SHARES SOLD?
- --------------------------------------------------------------------------------
VOLUNTARY SALES
If you wish to sell all or some of your Fund shares, you may do so
by:
(a) instructing your Morgan Stanley Dean Witter Financial Advisor to
wire transfer federal funds to your bank;
(b) writing a Bank One check against your Active Assets Account in an
amount equal to the value of shares you wish to sell (there may
be fees imposed for writing these checks); or
(c) obtaining a cash advance using your Bank One
Visa-Registered Trademark- debit card (there may be fees imposed
on cash advances and you may be limited to withdrawing up to
$5,000 per day).
Once you have taken any of these steps, your sale will normally be
processed on that same day at the Fund's share price calculated that
day. If you submit a wire instruction to sell shares before 12:00
noon Eastern time, you will receive payment of your sale proceeds on
that day. If you submit your instruction after that time, your shares
will be sold on the next business day and you will receive the
proceeds from the sale on that next day. If you seek to sell Fund
shares by writing a Bank One check, Fund shares will not be sold
until the day on which the check is presented to Bank One for
payment. Prior to selling any Fund shares through any of the above
methods you should call the Active Assets information number
appearing on the cover of this PROSPECTUS to determine the value of
Fund shares you own. If there is an insufficient value of Fund shares
to cover your account withdrawals, then Dean Witter Reynolds may take
the authorized steps described in the Client Account Agreement. If
you seek to sell shares by wire instruction, the amount covered in
the instruction may not exceed the value of Fund shares you hold less
any debits accrued to your account; otherwise, the wire instruction
will be refused and you will need to resubmit the instruction for a
lesser amount.
10
<PAGE>
AUTOMATIC SALES
NEGATIVE BALANCES IN YOUR ACTIVE ASSETS ACCOUNT. Your Active Assets
Account will be reviewed on each business day to determine whether
the account has a negative balance as a result of debits incurred on
that day. Of course, the negative balance will be reduced by any
credits accrued to the account on that day. On the same day, a
sufficient number of your Fund shares will automatically be sold to
equal the value of the negative balance. The sale price of the Fund's
shares will be the share price calculated on that day. If the value
of your Fund shares is insufficient to equal the negative balance,
Dean Witter Reynolds is authorized to take the actions described in
the Client Account Agreement, including, if you are eligible,
applying a margin loan to your Active Assets Account to cover
outstanding debits.
In addition, if Dean Witter Reynolds or Bank One exercises its right
to terminate the Active Assets Program, then all of your Fund shares
will be sold.
INSUFFICIENT INVESTMENT AMOUNTS. If your investment in a Fund falls
below the Fund's minimum investment requirement, your Fund shares
will be sold and the proceeds will be reinvested as follows:
<TABLE>
<CAPTION>
IF THE VALUE OF YOUR
INVESTMENT IS LESS THAN YOUR PROCEEDS WILL BE INVESTED IN
<S> <C>
-------------------------------------------------------------------------------------------------
$10 million Active Assets Premier Money Trust
-------------------------------------------------------------------------------------------------
$5 million Active Assets Money Trust
-------------------------------------------------------------------------------------------------
</TABLE>
The value of your investment will be tracked on a 30-day rolling
average basis. In the event the value of your investment does not
meet the minimum investment requirement for your Fund, we will
provide you notice that allows you 30 days to increase your
investment amount to satisfy the Fund's minimum investment
requirement. A pattern of frequent notices may result in the
Investment Manager, in its discretion, automatically selling your
shares, even if you meet the minimum investment requirement at the
time of such sale. However, your shares will not be sold unless you
had previously received a notice alerting you that the next time the
value of your shares falls below your Fund's investment minimum
(based on a 30-day rolling average basis) your shares will
automatically be sold.
ALL SALES
You will not earn a dividend on the day your shares are sold.
Payment for Fund shares sold may be postponed or the right to have
Fund shares sold may be suspended under unusual circumstances. If you
request to sell shares that were recently purchased by check, your
sale will not be effected until it has been verified that the check
has been honored.
11
<PAGE>
[ICON] DISTRIBUTIONS
- --------------------------------------------------------------------------------
Each Fund passes substantially all of its earnings along to its
investors as "distributions." Each Fund earns interest from
fixed-income investments. These amounts are passed along to Fund
shareholders as "income dividend distributions." Each Fund realizes
capital gains whenever it sells securities for a higher price than it
paid for them. These amounts may be passed along as "capital gain
distributions." The Investment Manager does not anticipate that there
will be significant capital gain distributions.
Each Fund declares income dividends, payable on each day the New York
Stock Exchange is open for business, of all of its daily net
investment income to shareholders of record as of 12:00 noon Eastern
time the same day (or, on days when the New York Stock Exchange
closes early, at such earlier time). Dividends are reinvested
automatically in additional shares of the respective Fund (rounded to
the last 1/100 of a share). Short-term capital gains, if any, are
declared and payable on each business day. Long-term capital gains,
if any, are distributed at least once in December.
[ICON] TAX CONSEQUENCES
- --------------------------------------------------------------------------------
As with any investment, you should consider how your investment in a
Fund will be taxed. The tax information in this PROSPECTUS is
provided as general information. You should consult your own tax
professional about the tax consequences of an investment in a Fund.
Your distributions are normally subject to federal and state income
tax when they are paid. A distribution also may be subject to local
income tax. Any income dividend distributions and any short-term
capital gain distributions are taxable to you as ordinary income. Any
long-term capital gain distributions are taxable as long-term capital
gains, no matter how long you have owned shares in a Fund.
Every January, you will be sent a statement (IRS Form 1099-DIV)
showing the taxable distributions paid to you in the previous year.
The statement provides full information on your dividends and capital
gains for tax purposes.
When you open your Fund account, you should provide your social
security or tax identification number. By providing this information,
you will avoid being subject to a federal backup withholding tax of
31% on taxable distributions and sale proceeds. Any withheld amount
would be sent to the IRS as an advance tax payment.
12
<PAGE>
NOTES
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13
<PAGE>
PROSPECTUS - JANUARY 28, 2000
Additional information about the Funds' investments is available in the Funds'
ANNUAL AND SEMI-ANNUAL REPORTS TO SHAREHOLDERS. The Funds' STATEMENT OF
ADDITIONAL INFORMATION also provides additional information about the Funds. The
STATEMENT OF ADDITIONAL INFORMATION is incorporated herein by reference (legally
is part of this PROSPECTUS). For a free copy of any of these documents, to
request other information about the Funds, or to make shareholder inquiries,
please call:
(800) 869-NEWS
You also may obtain information about the Funds by calling your Morgan Stanley
Dean Witter Financial Advisor or by visiting our Internet site at:
www.msdw.com/individual/funds
Information about the Funds (including the STATEMENT OF ADDITIONAL INFORMATION)
can be viewed and copied at the Securities and Exchange Commission's Public
Reference Room in Washington, DC. Information about the Reference Room's
operations may be obtained by calling the SEC at 1-202-942-8090. Reports and
other information about the Funds are available on the EDGAR database on the
SEC's Internet site (www.sec.gov) and copies of this information may be
obtained, after paying a duplicating fee, by electronic request at the following
E-mail address: [email protected], or by writing the Public Reference Section
of the SEC, Washington, DC 20549-0102.
ACTIVE ASSETS
INSTITUTIONAL MONEY TRUST
PREMIER MONEY TRUST
TWO MONEY MARKET FUNDS
OFFERED EXCLUSIVELY TO
PARTICIPANTS IN THE ACTIVE
ASSETS ACCOUNT-Registered Trademark- FINANCIAL
SERVICE PROGRAM
CLF#37854
(ACTIVE ASSETS INSTITUTIONAL MONEY TRUST'S INVESTMENT COMPANY ACT FILE NO. IS
811-9713)
(ACTIVE ASSETS PREMIER MONEY TRUST'S INVESTMENT COMPANY ACT FILE NO. IS
811-9711)
