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SUPPLEMENT DATED AUGUST 30, 1996
TO THE PROSPECTUS DATED MAY 1, 1996 OF
MORGAN STANLEY INSTITUTIONAL FUND, INC.
P.O. BOX 2798
BOSTON, MASSACHUSETTS
02208-2798
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The prospectus dated May 1, 1996 (the "Prospectus") of the International
Magnum Portfolio of the Morgan Stanley Institutional Fund, Inc. (the "Fund") is
hereby amended and supplemented as follows:
The following section is added before the section under the heading
"PROSPECTUS SUMMARY:"
FINANCIAL HIGHLIGHTS
The following table provides financial highlights for the International
Magnum Portfolio for the period ended July 31, 1996 and is part of the Fund's
unaudited financial statements which are included in the Fund's Statement of
Additional Information (the "SAI"). The SAI is available at no cost from the
Fund at the address and telephone number noted on the cover page of this
Prospectus. The following information should be read in conjunction with the
financial statements and notes thereto.
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CLASS A CLASS B
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PERIOD FROM
MARCH 15, 1996* TO
JULY 31, 1996
(UNAUDITED)
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<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD....................................................... $ 10.00 $ 10.00
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INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (1).............................................................. 0.03 0.03
Net Realized and Unrealized Loss on Investments........................................ (0.06) (0.08)
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Total from Investment Operations..................................................... (0.03) (0.05)
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NET ASSET VALUE, END OF PERIOD............................................................. $ 9.97 $ 9.95
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TOTAL RETURN............................................................................... (0.30)% (0.50)%
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RATIOS AND SUPPLEMENTAL DATA:
Net Assets, End of Period (Thousands)...................................................... $ 65,939 $ 2,395
Ratio of Expenses to Average Net Assets (1)................................................ 1.00%** 1.25%**
Ratio of Net Investment Income to Average Net Assets (1)................................... 1.71%** 1.66%**
Portfolio Turnover Rate.................................................................... 3% 3%
Average Commission Rate.................................................................... $ 0.0391 $ 0.0391
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(1) Effect of voluntary expense limitation during the period:
Per share benefit to net investment income........................................... $ 0.02 $ 0.02
Ratios before expense limitation:
Expenses to Average Net Assets....................................................... 2.15%** 2.68%**
Net Investment Income to Average Net Assets.......................................... 0.56%** 0.23%**
* Commencement of Operations
** Annualized
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