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SUPPLEMENT DATED MARCH 9, 1998
TO THE PROSPECTUS DATED OCTOBER 28, 1997,
AS PREVIOUSLY SUPPLEMENTED ON JANUARY 2, 1998
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
MORGAN STANLEY EMERGING MARKETS DEBT FUND
MORGAN STANLEY GLOBAL FIXED INCOME FUND
MORGAN STANLEY HIGH YIELD FUND
MORGAN STANLEY WORLDWIDE HIGH INCOME FUND
MORGAN STANLEY AGGRESSIVE EQUITY FUND
MORGAN STANLEY AMERICAN VALUE FUND
MORGAN STANLEY EQUITY GROWTH FUND
MORGAN STANLEY MID CAP GROWTH FUND
MORGAN STANLEY U.S. REAL ESTATE FUND
MORGAN STANLEY VALUE FUND
MORGAN STANLEY GROWTH AND INCOME FUND
MORGAN STANLEY EUROPEAN EQUITY FUND
PORTFOLIOS OF THE
MORGAN STANLEY FUND, INC. (THE "COMPANY")
P.O. BOX 418256
KANSAS CITY, MISSOURI
64141
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The section of the Prospectus captioned "SHAREHOLDER SERVICES" hereby is
supplemented by adding the following:
INTERNET TRANSACTIONS. In addition to performing transactions on your
account through written instruction or by telephone, you may also perform
certain transactions through the Internet. Please refer to our web site @
www.vkac.com for further instruction. Van Kampen American Capital and its
subsidiaries, including ACCESS (collectively, "VKAC"), and the Fund employ
procedures considered by them to be reasonable to confirm that instructions
communicated through the Internet are genuine. Such procedures include
requiring use of a personal identification number prior to acting upon
Internet instructions and
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providing written confirmation of instructions communicated through the
Internet. If reasonable procedures are employed, neither VKAC nor the Fund
will be liable for following instructions through the Internet which it
reasonably believes to be genuine. If an account has multiple owners, ACCESS
may rely on the instructions of any one owner.
FOR THE MORGAN STANLEY ASIAN GROWTH FUND ONLY
The section of the Prospectus entitled "MANAGEMENT OF THE COMPANY --
PORTFOLIO MANAGERS" is hereby amended and supplemented to reflect a change
in the portfolio management of the Asian Growth Fund. Vinod Sethi now shares
primary responsibility for managing the assets of the Asian Growth Fund with
Ean Wah Chin. The paragraph is replaced with the following:
ASIAN GROWTH FUND -- ASIAN EQUITY PORTFOLIO -- EAN WAH CHIN AND VINOD
SETHI. Ean Wah Chin is a Managing Director of Morgan Stanley and the
Sub-Adviser. She has been primarily responsible for managing the Portfolio's
assets since its inception. Prior to joining Morgan Stanley in 1986, Ms.
Chin spent eight years with the Monetary Authority of Singapore and the
Government of Singapore Investment Corporation, where she was a portfolio
manager of one of the largest portfolios in Asia. Vinod Sethi joined the
Sub-Adviser in 1989 and since then, has been actively involved in the
Sub-Adviser's emerging markets group. Mr. Sethi is a Managing Director of
Morgan Stanley and the Sub-Adviser and is the Sub-Adviser'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.
FOR THE MORGAN STANLEY U.S. REAL ESTATE FUND ONLY
The Trustees of the Fund have approved an Agreement and Plan of
Reorganization between the Fund and Van Kampen American Real Estate
Securities Fund (the "Real Estate Securities Fund"), advised by Van Kampen
American Capital Asset Management, Inc., providing for the transfer of
assets and liabilities of the Fund to the Real Estate Securities Fund in
exchange for shares of beneficial interest of the Real Estate Securities
Fund at its net asset value per share (the "Reorganization").
The Reorganization is subject to approval by the shareholders of the
Fund. Further details of the proposed Reorganization will be contained in
the proxy statement/prospectus expected to be mailed to shareholders in
1998.
The Real Estate Securities Fund's net assets as of December 31, 1997
were approximately $141 million. Its investment objective is to seek to
provide shareholders with long-term growth of capital, and a secondary
objective is to seek current income. The Fund and the Real Estate Securities
Fund have similar investment objectives, policies and practices, and are
managed by the same portfolio management team.
The Fund will continue its normal operations prior to the
Reorganization.
FOR THE MORGAN STANLEY GLOBAL FIXED INCOME FUND ONLY
The Trustees of the Fund have approved an Agreement and Plan of
Reorganization between the Fund and Van Kampen American Global Government
Securities Fund (the "Global Government Securities Fund"), a series of Van
Kampen American Capital World Portfolio Series Trust advised by Van Kampen
American Capital Asset Management, Inc., providing for the transfer of
assets and liabilities of the Fund to the Global Government Securities Fund
in exchange for shares of beneficial interest of the Global Government
Securities Fund at its net asset value per share (the "Reorganization").
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The Reorganization is subject to approval by the shareholders of the
Fund. Further details of the proposed Reorganization will be contained in
the proxy statement/prospectus expected to be mailed to shareholders in
1998.
The Global Government Securities Fund's net assets as of December 31,
1997 were approximately $72 million. Its investment objective is to seek to
provide a high level of current income, and secondary objectives are to seek
to provide capital appreciation and protection of principal. The Fund and
the Global Government Securities Fund have similar investment objectives,
policies and practices, and are managed by the same portfolio management
team.
The Fund will continue its normal operations prior to the
Reorganization.
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PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
