<PAGE>
PROSPECTUS -AUGUST 29, 2000
ACTIVE ASSETS
INSTITUTIONAL MONEY TRUST
PREMIER MONEY TRUST
TWO SEPARATE MONEY MARKET FUNDS
OFFERED EXCLUSIVELY TO PARTICIPANTS IN THE ACTIVE
ASSETS-Registered Trademark- OR BUSINESSCAPE-SM- FINANCIAL SERVICE PROGRAMS
FOR INFORMATION ON THE ACTIVE ASSETS OR
BUSINESSCAPE FINANCIAL SERVICE PROGRAMS, READ
THE CLIENT ACCOUNT AGREEMENT FOR EACH PROGRAM AND/OR
CALL (800) 869-3326 OR (212) 392-5000 (FOR THE ACTIVE ASSETS
PROGRAM) OR (800) 355-3086 (FOR THE BUSINESSCAPE PROGRAM).
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
Financial Highlights............................................ 14
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 the Active
Assets-Registered Trademark- or BusinesScape-SM- financial service
programs offered by Dean Witter Reynolds Inc. (the "Financial Service
Programs"). (Dean Witter Reynolds Inc. is affiliated with Morgan
Stanley Dean Witter Advisors Inc., the Funds' Investment Manager.)
Participants in the Financial Service Programs are offered a Dean
Witter brokerage account that is linked to the Funds, as well as to
Active Assets Money Trust, Active Assets Tax-Free Trust, Active
Assets California Tax-Free Trust and Active Assets Government
Securities Trust (four other money market funds participating in the
Financial Service Programs), a debit card, a checking account and, in
the case of the Active Assets program, a federally insured bank
account. In addition, participants in the BusinesScape program may
have access to a commercial line of credit.
The annual fee presently charged for participating in the Active
Assets program ($80 for individuals and $100 for businesses) or the
BusinesScape program ($150) is currently waived for investors in the
Funds. At any time, Dean Witter Reynolds Inc. may change the annual
fee charged and the services provided under the Financial Service
Programs. For details on the Financial Service Programs, please read
the client account agreement for each program.
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.
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 OBJECTIVES
--------------------------------------------------------------------------------
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
objectives.
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 EXPENSES
PAID FOR THE FISCAL PERIOD ENDED JUNE 30, 2000.
[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 0.04%
--------------------------------------------------------------------
Distribution and service (12b-1) fees 0.00%
--------------------------------------------------------------------
Other expenses 0.16%
--------------------------------------------------------------------
Total annual Fund operating expenses(1) 0.20%
--------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
(1) THE FEES AND EXPENSES DISCLOSED ABOVE REFLECT THAT 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. IF THE FUND HAD
BORNE ALL OF ITS EXPENSES THAT WERE ASSUMED OR WAIVED BY THE
INVESTMENT MANAGER, THE ANNUALIZED EXPENSE RATIOS WOULD HAVE
BEEN AS FOLLOWS: (i) MANAGEMENT FEE: 0.15%;
(ii) DISTRIBUTION AND SERVICE (12b-1) FEE: 0.00%;
(iii) OTHER EXPENSES: 0.16%; AND (iv) TOTAL ANNUAL FUND
OPERATING EXPENSES: 0.31%.
</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 commenced operations on February 15, 2000 and as of the date
of this PROSPECTUS did not have a full calendar year of 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 OBJECTIVES
--------------------------------------------------------------------------------
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
objectives.
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 EXPENSES
PAID FOR THE FISCAL PERIOD ENDED JUNE 30, 2000.
[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 0.01%
--------------------------------------------------------------------
Distribution and service (12b-1) fees 0.00%
--------------------------------------------------------------------
Other expenses 0.29%
--------------------------------------------------------------------
Total annual Fund operating expenses(1) 0.30%
--------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
(1) THE FEES AND EXPENSES DISCLOSED ABOVE REFLECT THAT 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. IF THE FUND HAD
BORNE ALL OF ITS EXPENSES THAT WERE ASSUMED OR WAIVED BY THE
INVESTMENT MANAGER, THE ANNUALIZED EXPENSE RATIOS WOULD HAVE
BEEN AS FOLLOWS: (i) MANAGEMENT FEE: 0.25%;
(ii) DISTRIBUTION AND SERVICE (12b-1) FEE: 0.00%;
(iii) OTHER EXPENSES: 0.29%; AND (iv) TOTAL ANNUAL FUND
OPERATING EXPENSES: 0.54%.
</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 $96
-------------------------
</TABLE>
The Fund commenced operations on February 15, 2000 and as of the date
of this PROSPECTUS did not have a full calendar year of 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 $150 BILLION IN ASSETS UNDER
MANAGEMENT AS OF JULY 31, 2000.
[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 THE 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 under each respective 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 Financial Service Program account (through the
Active Assets program or the BusinesScape program) 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 Financial Service Program participants, 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, if you are a participant in the Active Assets program,
you may choose to have your cash balances deposited in a federally
insured bank account designated by Dean Witter Reynolds Inc. rather
than invested in a fund. You may change your investment selection at
any time by notifying your Morgan Stanley Dean Witter Financial
Advisor. Upon selecting a different fund, your shares held in the
previously designated fund will automatically be sold and reinvested
in shares of the newly selected fund.
WIRING MONEY TO YOUR ACCOUNT
To purchase Fund shares by wiring federal funds to your 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 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
9
<PAGE>
account. Debits to your account may arise from purchases of
securities, margin calls, other account charges (including, in the
case of your BusinesScape account, any principal and/or interest owed
on your commercial line of credit, if applicable), debit card
purchases, cash advances or withdrawals, and any checks written
against the account. The cash balance, reduced by any debits to your
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 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 check against your 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 cash using your debit card (there may be fees imposed
and certain limitations on withdrawals).
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 check against your account, Fund shares will not
be sold until the day on which the check is presented for payment.
Prior to selling any Fund shares through any of the above methods you
should call your Morgan Stanley Dean Witter Financial Advisor or the
applicable 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 Inc. may take the authorized
steps described in your client account agreement. If you seek to sell
shares by wire instruction, the amount covered in
10
<PAGE>
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.
AUTOMATIC SALES
NEGATIVE BALANCES IN YOUR ACCOUNT. Your 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
Inc. is authorized to take the actions described in your client
account agreement, including, if you are eligible, applying a margin
loan to your account or accessing your line of credit, as applicable,
to cover outstanding debits.
In addition, if Dean Witter Reynolds Inc. exercises its right to
terminate the Financial Service Program you are invested in, 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 but at least $5 million Active Assets Premier Money Trust
-------------------------------------------------------------------------------------------------
$5 million Active Assets Money Trust
-------------------------------------------------------------------------------------------------
</TABLE>
You should be aware that Active Assets Money Trust is subject to
higher annual expenses than either Fund. In addition, if your
investment is reinvested in shares of Active Assets Money Trust, you
will lose one or more day's dividend because of the timing difference
between the way the funds earn dividends. Please consult Active
Assets Money Trust's prospectus for more details.
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 Fund, 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.
11
<PAGE>
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.
[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
distributed periodically. 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 information on your dividends and capital
gains for tax purposes.
12
<PAGE>
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.
13
<PAGE>
ACTIVE ASSETS INSTITUTIONAL MONEY TRUST
FINANCIAL HIGHLIGHTS
The financial highlights table is intended to help you understand the Fund's
financial performance since the commencement of operations. Certain information
reflects financial results for a single Fund share throughout the period. The
total return in the table represents the rate an investor would have earned or
lost on an investment in the Fund (assuming reinvestment of all dividends and
distributions.)
This information has been audited by Deloitte & Touche LLP, independent
accountants, whose report, along with the Fund's financial statements, is
available upon request.
<TABLE>
<CAPTION>
FOR THE PERIOD FEBRUARY 15, 2000*
THROUGH JUNE 30, 2000
<S> <C>
---------------------------------------------------------------------------------------------------
SELECTED PER SHARE DATA:
---------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00
---------------------------------------------------------------------------------------------------
Net income from investment operations 0.023
---------------------------------------------------------------------------------------------------
Less dividends from net investment income (0.023)
---------------------------------------------------------------------------------------------------
Net asset value, end of period. $ 1.00
---------------------------------------------------------------------------------------------------
TOTAL RETURN 2.31%(1)
---------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:
---------------------------------------------------------------------------------------------------
Expenses 0.20%(2)(3)
---------------------------------------------------------------------------------------------------
Net investment income 6.12%(2)(3)
---------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
---------------------------------------------------------------------------------------------------
Net assets, end of period, in thousands. $813,428
---------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
* Commencement of operations.
(1) Not annualized.
(2) Annualized.
(3) If the Fund had borne all of its expenses that were reimbursed or waived by the
Investment Manager, the annualized expense and net investment income ratios
would have been 0.31% and 6.01%, respectively for the period ended June 30,
2000.
</TABLE>
14
ACTIVE ASSETS INSTITUTIONAL MONEY TRUST
<PAGE>
ACTIVE ASSETS PREMIER MONEY TRUST
FINANCIAL HIGHLIGHTS
The financial highlights table is intended to help you understand the Fund's
financial performance since the commencement of operations. Certain information
reflects financial results for a single Fund share throughout the period. The
total return in the table represents the rate an investor would have earned or
lost on an investment in the Fund (assuming reinvestment of all dividends and
distributions.)
This information has been audited by Deloitte & Touche LLP, independent
accountants, whose report, along with the Fund's financial statements, is
available upon request.
<TABLE>
<CAPTION>
FOR THE PERIOD FEBRUARY 15, 2000*
THROUGH JUNE 30, 2000
<S> <C>
---------------------------------------------------------------------------------------------------
SELECTED PER SHARE DATA:
---------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00
---------------------------------------------------------------------------------------------------
Net income from investment operations 0.023
---------------------------------------------------------------------------------------------------
Less dividends from net investment income (0.023)
---------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00
---------------------------------------------------------------------------------------------------
TOTAL RETURN 2.29%(1)
---------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:
---------------------------------------------------------------------------------------------------
Expenses 0.30%(2)(3)
---------------------------------------------------------------------------------------------------
Net investment income 6.02%(2)(3)
---------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
---------------------------------------------------------------------------------------------------
Net assets, end of period, in thousands $215,942
---------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
* Commencement of operations.
(1) Not annualized.
(2) Annualized.
(3) If the Fund had borne all of its expenses that were reimbursed or waived by the
Investment Manager, the annualized expense and net investment income ratios
would have been 0.54% and 5.78%, respectively for the period ended June 30,
2000.
</TABLE>
15
ACTIVE ASSETS PREMIER MONEY TRUST
<PAGE>
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16
<PAGE>
NOTES
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17
<PAGE>
PROSPECTUS - AUGUST 29, 2000
Additional information about the Funds' investments is available in the Funds'
ANNUAL AND SEMI-ANNUAL REPORTS TO SHAREHOLDERS (the current annual report is
included in this PROSPECTUS). 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 (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 SEPARATE MONEY MARKET
FUNDS OFFERED EXCLUSIVELY TO
PARTICIPANTS IN THE ACTIVE
ASSETS-Registered Trademark- OR BUSINESSCAPE-SM-
FINANCIAL SERVICE PROGRAMS
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)
