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MORGAN STANLEY ASIAN GROWTH FUND
MORGAN STANLEY EMERGING MARKETS FUND
MORGAN STANLEY GLOBAL EQUITY FUND
MORGAN STANLEY GLOBAL EQUITY ALLOCATION FUND
MORGAN STANLEY INTERNATIONAL MAGNUM FUND
MORGAN STANLEY JAPANESE EQUITY FUND
MORGAN STANLEY LATIN AMERICAN FUND
PORTFOLIOS OF THE
MORGAN STANLEY FUND, INC.
P.O. BOX 418256, KANSAS CITY, MISSOURI 64141
FOR INFORMATION CALL 1-800-282-4404
SUPPLEMENT DATED SEPTEMBER 24, 1997
TO THE PROSPECTUS DATED JANUARY 2, 1997
AS SUPPLEMENTED THROUGH AUGUST 27, 1997
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As described below, the Morgan Stanley Global Equity Fund (the "Global
Equity Fund") is initiating an initial public offering of its shares. Therefore,
references in the Prospectus to the Global Equity Fund currently not offering
its shares are hereby deleted and the changes outlined below to describe the
offering are hereby incorporated into the Prospectus. This supplement does not
impact any of the other Funds described in the Prospectus.
The section entitled "How to Invest" is hereby amended to read "How to
Invest (Funds other than the Global Equity Fund)" and a new section is hereby
added as follows:
HOW TO INVEST (GLOBAL EQUITY FUND ONLY)
The Fund offers three classes of shares to the public, designated
Class A shares, Class B shares and Class C shares. The Class A shares,
Class B shares and Class C shares of the Fund are designed to provide
investors a choice of three ways to pay distribution-related charges.
Class A shares are subject to a maximum initial sales charge of 5.75%,
which initial sales charge may be reduced on certain larger purchases or
when combining purchases with the investor's aggregate investment in the
Participating Funds (as defined herein). Class B shares are not subject
to an initial sales charge but are subject to a contingent deferred
sales charge ("CDSC") of 5% for redemptions within the first year after
purchase and declining thereafter to 0% after five years. Class C shares
are not subject to an initial sales charge but are subject to a maximum
CDSC of 1% for redemptions within the first year after purchase. The
minimum initial investment is $500 for each class of shares of the Fund,
except that the minimum initial investment amount may be reduced for
certain categories of investors. See "Purchase of Shares".
Initial Public Offering -- On September 24, 1997, the Fund is
commencing an initial public offering of its shares (the "Initial Public
Offering"). The Initial Public Offering period expires at 5:00 p.m.
Eastern time on Friday, October 24, 1997, unless extended to a later
date by agreement
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between the Fund and the Distributor (the "Expiration Date"). Investors
seeking to purchase shares of the Fund should contact the Distributor or
their broker or dealer prior to the Expiration Date for instructions on
how to place an order. Shares of the Fund are being offered initially at
$10.00 per share plus any applicable initial sales charge. Payment for
shares is due, and the Fund anticipates commencing investment operations
on the third business day after the Expiration Date (the "Closing
Date"). The Fund does not seek payment from investors prior to the
Closing Date and any payments received prior thereto will be returned to
investors. Shortly after termination of the Initial Public Offering, the
Fund expects to commence a continuous public offering of its shares.
Continuous Public Offering -- Shortly after termination of the
Initial Public Offering, the Fund expects to commence a continuous
public offering of its three classes of shares through the Distributor
and selected brokers and dealers. Shares of the Fund are offered during
the continuous public offering at the net asset value per share next
determined after receipt of the investor's order to purchase plus any
applicable initial sales charge.
In the section entitled "Purchase of Shares" on page 45, delete the
subsection title word "General" and insert in its place the subsection title
words "For Funds Other than the Global Equity Fund:". In addition, on page 46
preceding the paragraph beginning "Each class of shares represents..." insert a
new subsection as follows:
FOR THE GLOBAL EQUITY FUND ONLY:
The Fund offers three classes of shares, designated Class A shares,
Class B shares and Class C shares, to the public through the Distributor
as principal underwriter which is located at One Parkview Plaza,
Oakbrook Terrace, Illinois 60181. Shares are also offered through
members of the NASD who are acting as securities dealers ("dealers") and
NASD members or eligible non-NASD members who are acting as brokers or
agents for investors ("brokers"). The term "dealers" and "brokers" are
sometimes referred to herein as "Participating Dealers".
The Class A shares, Class B shares and Class C shares of the Fund
are designed to provide investors a choice of three ways to pay
distribution-related charges. Initial investments must be at least $500
for each class of shares, and subsequent investments must be at least
$25 for each class of shares. The $500 minimum may be waived by the
Distributor for plans involving periodic investments. Shares of the
Company may be sold in foreign countries where permissible. The Company
and the Distributor reserve the right to refuse any order for the
purchase of shares. The Company also reserves the right to suspend the
sale of the Company's shares in response to conditions in the securities
markets or for other reasons.
INITIAL PUBLIC OFFERING
On September 24, 1997, the Fund is commencing an initial public
offering of its shares (the "Initial Public Offering"). The Initial
Public Offering period expires at 5:00 p.m. Eastern time on Friday,
October 24, 1997, unless extended to a later date by agreement between
the Fund and the Distributor (the "Expiration Date"). Investors seeking
to purchase shares of the Fund should contact the Distributor or their
broker or dealer prior to the Expiration Date for instructions on how to
place an order. Shares of the Fund are being offered initially at $10.00
per share plus any applicable initial sales charge. Payment for shares
is due, and the Fund anticipates commencing investment operations, on
the third business day after the Expiration Date (the "Closing Date").
The Fund does not seek
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payment from investors prior to the Closing Date and any payments
received prior thereto will be returned to investors. Shortly after
termination of the Initial Public Offering the Fund expects to commence
a continuous public offering of its shares.
CONTINUOUS PUBLIC OFFERING
Shortly after termination of the Initial Public Offering the Fund
expects to commence a continuous public offering of its three classes of
shares through the Distributor and selected brokers and dealers. Shares
of the Fund are offered during the continuous public offering at the net
asset value per share next determined after receipt of the investor's
order to purchase plus any applicable initial sales charge. Shares of
the Company may be purchased on any business day through Participating
Dealers. Shares may also be purchased by completing the application
accompanying this Prospectus and forwarding the application, through the
Participating Dealer, to the shareholder service agent, ACCESS Investor
Services, Inc. ("ACCESS"), a wholly-owned subsidiary of Van Kampen
American Capital, Inc. When purchasing shares of the Company, investors
must specify whether the purchase is for Class A shares, Class B shares
or Class C shares. Shares are offered at the next determined net asset
value per share, plus any initial or contingent deferred sales charge
depending on the class of shares chosen by the investor, as shown in the
tables herein. See "Valuation of Shares" for a further description of
net asset value computations. Generally, the net asset values per share
of the Class A shares, Class B shares and Class C shares are expected to
be substantially the same. Under certain circumstances, however, the per
share net asset values of the classes of shares may differ from one
another, reflecting the daily expense accruals of the distribution and
the higher transfer agency fees applicable with respect to the Class B
shares and Class C shares and the differential in the dividends paid on
the classes of shares. The price paid for shares purchased is based on
the next calculation of net asset value (plus sales charges, where
applicable) after an order is received by a Participating Dealer
provided such order is transmitted to the Distributor prior to the
Distributor's close of business on such day. Orders received by
Participating Dealers after the close of the New York Stock Exchange
(the "NYSE") are priced based on the net asset value calculated after
the next day's close provided they are received by the Distributor prior
to the Distributor's close of business on such day. It is the
responsibility of Participating Dealers to transmit orders received by
them to the Distributor so they will be received prior to such time.
GENERAL -- ALL FUNDS
The first sentence in the subsection entitled "Class A Shares" on page 48 is
hereby amended and restated as follows:
For Funds other than the Global Equity Fund, the offering price of
Class A shares is the next determined net asset value plus a sales
charge as set forth herein. For the Global Equity Fund, the offering
price of Class A shares in the Initial Public Offering is $10.00 per
share plus a sales charge and during the continuous offering is the next
determined net asset value plus a sales charge as set forth herein.
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The first sentence in the subsection entitled "Purchase of Class B Shares"
on page 52 is hereby amended and restated as follows:
For Funds other than the Global Equity Fund, Class B shares may be
purchased at the net asset value without an initial sales charge. For
the Global Equity Fund, Class B shares may be purchased during the
Initial Public Offering at $10.00 per share without an initial sales
charge and during the continuous offering at net asset value without an
initial sales charge.
The first sentence in the subsection entitled "Purchase of Class C Shares"
on page 53 is hereby amended and restated as follows:
For Funds other than the Global Equity Fund, Class C shares may be
purchased at the net asset value without an initial sales charge. For
the Global Equity Fund, Class C shares may be purchased during the
Initial Public Offering at $10.00 per share without an initial sales
charge and during the continuous offering at net asset value without an
initial sales charge.
In the section entitled "Performance Information -- Performance of
Investment Sub-Adviser" on page 62, the paragraph beginning "The data set forth
below..." and the table following such paragraph are amended as follows:
The data set forth below under the heading "Return With Sales
Charge" is adjusted to reflect the Fund's projected operating expenses
and (i) with respect to the Class A shares, to take into account a
maximum 5.75% initial sales charge applicable to purchases of Class A
shares of the Global Equity Fund; (ii) with respect to Class B shares,
to take into account the applicable CDSC that is imposed if Class B
shares of the Global Equity Fund are redeemed within the year of their
purchase indicated; and (iii) with respect to the Class C shares, to
take into account a 1.00% CDSC that is imposed if Class C shares of the
Global Equity Fund are redeemed within one year of their purchase. The
data set forth below under the heading "Return Without Sales Charge" is
adjusted to reflect the Fund's projected operating expenses and is not
adjusted to take into account such sales charges.
TOTAL RETURN FOR THE MSIF GLOBAL EQUITY PORTFOLIO'S CLASS A SHARES
(A SEPARATE MUTUAL FUND FROM THE GLOBAL EQUITY FUND)
FOR THE PERIOD ENDED JULY 31, 1997
(ADJUSTED TO REFLECT STATED SALES LOAD AND PROJECTED OPERATING EXPENSES OF THE
GLOBAL EQUITY FUND)
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<CAPTION>
SINCE
RETURN WITH SALES CHARGE 1 YEAR 3 YEAR 5 YEAR INCEPTION(1)
- -------------------------------------------------------- --------- --------- --------- -----------------
<S> <C> <C> <C> <C>
Class A................................................. 30.23% 17.48% 20.57% 19.73%
Class B................................................. 32.43% 18.58% 21.52% 20.77%
Class C................................................. 36.43% 19.29% 21.65% 20.77%
RETURN WITHOUT SALES CHARGE
- --------------------------------------------------------
Class A................................................. 38.18% 19.83% 22.01% 21.14%
Class B................................................. 37.43% 19.29% 21.65% 20.77%
Class C................................................. 37.43% 19.29% 21.65% 20.77%
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(1) Commenced Operations on July 15, 1992.
The past performance of the MSIF Portfolio is not a guarantee of
the future performance of the Global Equity Fund.
