SEC Info  
   Home     Search     My Interests     Help     Sign In     Please Sign In  

Morgan Stanley Institutional Fund Trust · 497 · On 3/25/02

Filed On 3/25/02   ·   Accession Number 950130-2-1883   ·   SEC File 333-83236

  in   Show  and 
Help... Wildcards:  ? (any letter),  * (many).  Logic:  for Docs:  & (and),  | (or);  for Text:  | (anywhere),  "(&)" (near).
 
  As Of                Filer                Filing    For/On/As Docs:Size              Issuer               Agent

 3/25/02  Morgan Stanley Inst'l Fund Trust  497                    1:359K                                   Donnelley R R & S..02/FA

Definitive Material   —   Rule 497
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 497         Morgan Stanley Institutional Fund Trust               98    840K 


Document Table of Contents

Page (sequential) | (alphabetic) Top
 
11st Page   -   Filing Submission
4Table of Contents
6Proxy Statement and Prospectus
"Introduction
"General
7Record Date; Share Information
"Proxies
8The Proxy Solicitation Process
"Vote Required
9Synopsis
"The Reorganizations
10Fee Tables/Examples
"I) Reorganization of the Fixed Income III Fund into the Investment Grade Fund:
11II) Reorganization of the High Yield II Fund into the High Yield Fund:
12III) Reorganization of the Special Purpose Fund into the Core Plus Fund:
"Tax Consequences of the Reorganizations
"Comparison of the Target Fund and the Acquiring Fund
"I) Fixed Income III Fund vs. Investment Grade Fund:
13Purchases, Exchanges and Redemptions
14II) High Yield II Fund vs. High Yield Fund:
17III) Special Purpose Fund vs. Core Plus Fund:
19The Boards' Considerations
"I) Reorganization of the Fixed Income III Fund:
"II) Reorganization of the High Yield II Fund:
20III) Reorganization of the Special Purpose Fund:
"IV) The Board of the Acquiring Funds:
"The Reorganization Agreements
22Tax Aspects of the Reorganizations
24Description of Shares
"Capitalization Tables (unaudited)
"High Yield II Fund
"Appraisal Rights
25Comparison of Investment Objectives, Policies and Restrictions
29Additional Information About the Target Funds and the Acquiring Funds
"Financial Information
"Management
"Description of Securities and Shareholder Inquiries
"Dividends, Distributions and Taxes
"Purchases, Repurchases and Redemptions
"Management's Discussion of Fund Performance
30Financial Statements and Experts
"Legal Matters
"Available Information
31Other Business
55Distribution of Shares
4971st Page of 98TOCTopPreviousNextBottomJust 1st
 

MORGAN STANLEY INSTITUTIONAL FUND, INC. Fixed Income III Portfolio High Yield II Portfolio P.O. Box 2798 Boston, Massachusetts 02208-2798 (800) 548-7786 MORGAN STANLEY INSTITUTIONAL FUND TRUST Special Purpose Fixed Income Portfolio One Tower Bridge 100 Front Street, Suite 1100 West Conshohocken, PA 19428-2881 (800) 548-7786 NOTICE OF SPECIAL JOINT MEETING OF SHAREHOLDERS TO BE HELD MAY 15, 2002 Notice is hereby given of a Special Joint Meeting of Shareholders of the Fixed Income III Portfolio (the "Fixed Income III Fund"), the High Yield II Portfolio (the "High Yield II Fund"), each a portfolio of the Morgan Stanley Institutional Fund, Inc. (the "Company"), and the Special Purpose Fixed Income Portfolio (the "Special Purpose Fund"), a portfolio of Morgan Stanley Institutional Fund Trust (the "Trust") (separately referred to as "your Fund" and collectively referred to as "the Funds"), to be held in the offices of Morgan Stanley Investment Management Inc., 1221 Avenue of the Americas, 5th Floor, Conference Room 1A, New York, NY, at 8:30 A.M., New York time, on May 15, 2002, and any adjournments thereof (the "Meeting"), for the following purposes: 1. To consider and vote upon an Agreement and Plan of Reorganization for your Fund pursuant to which substantially all of the assets of: For Fixed Income III Fund shareholders only: (i) Fixed Income III Fund will be combined with the assets of the Investment Grade Fixed Income Portfolio of the Trust (the "Investment Grade Fund"), in exchange for shares of the Investment Grade Fund. Class A shares will receive Institutional Class shares, and Class B shares will receive Adviser Class shares, respectively, of the Investment Grade Fund. For High Yield II Fund shareholders only: (ii) High Yield II Fund will be combined with the assets of the High Yield Portfolio of the Trust (the "High Yield Fund"), in exchange for shares of the High Yield Fund. Class A shares will receive Institutional Class shares, and Class B shares will receive Adviser Class shares, respectively, of the High Yield Fund. For Special Purpose Fund shareholders only: (iii) Special Purpose Fund will be combined with the assets of the Core Plus Fixed Income Portfolio of the Trust (the "Core Plus Fund"), in exchange for shares of the Core Plus Fund. Shareholders of the Special Purpose Fund will receive Institutional Class shares of the Core Plus Fund; and 2. To act upon such other matters as may properly come before the Meeting. The Reorganizations are more fully described in the accompanying Proxy Statement and Prospectus and in the Form of Reorganization Agreement attached thereto. Shareholders of record at the close of business on February 19, 2002 are entitled to notice of, and to vote at, the Meeting. Please read the Proxy Statement and Prospectus carefully before telling us, through your proxy or in person, how you wish your shares to be voted. Alternatively, if you are eligible to vote telephonically by touchtone telephone or electronically on the Internet
4972nd Page of 98TOC1stPreviousNextBottomJust 2nd
(as discussed in the enclosed Proxy Statement) you may do so in lieu of attending the Meeting in person. The Board of Directors of the Company and the Board of Trustees of the Trust recommend that you vote in favor of the Reorganization of your Fund. WE URGE YOU TO SIGN, DATE AND MAIL THE ENCLOSED PROXY PROMPTLY. By Order of the Boards, MARY E. MULLIN Secretary Morgan Stanley Institutional Fund, Inc. Morgan Stanley Institutional Fund Trust March 25, 2002 You can help avoid the necessity and expense of sending follow-up letters to ensure a quorum by promptly returning the enclosed Proxy. If you are unable to be present in person, please fill in, sign and return the enclosed Proxy in order that the necessary quorum be represented at the Meeting. The enclosed envelope requires no postage if mailed in the United States. As discussed in the enclosed Proxy Statement, certain Shareholders will be able to vote telephonically by touchtone telephone or electronically on the Internet by following the instructions on their proxy cards. 2
4973rd Page of 98TOC1stPreviousNextBottomJust 3rd
MORGAN STANLEY INSTITUTIONAL FUND, INC. Fixed Income III Portfolio High Yield II Portfolio P.O. Box 2798 Boston, Massachusetts 02208-2798 (800) 548-7786 MORGAN STANLEY INSTITUTIONAL FUND TRUST Special Purpose Fixed Income Portfolio One Tower Bridge 100 Front Street, Suite 1100 West Conshohocken, PA 19428-2881 (800) 548-7786 This Proxy Statement and Prospectus is being furnished to shareholders of the Fixed Income III Portfolio (the "Fixed Income III Fund"), the High Yield II Portfolio (the "High Yield II Fund"), each a portfolio of the Morgan Stanley Institutional Fund, Inc. (the "Company"), and the Special Purpose Fixed Income Portfolio (the "Special Purpose Fund"), a portfolio of Morgan Stanley Institutional Fund Trust (the "Trust") (separately referred to as "a Fund" or "your Fund", and collectively referred to as "the Funds" or "the Target Funds"), in connection with an Agreement and Plan of Reorganization for each Fund, dated January 23, 2002 (the "Reorganization Agreement"), a form of which is attached hereto as Exhibit A. Pursuant to the Reorganization Agreements, substantially all of the assets of: 1. Fixed Income III Fund will be combined with the assets of the Investment Grade Fixed Income Portfolio of the Trust (the "Investment Grade Fund"), in exchange for shares of the Investment Grade Fund. Class A shares will receive Institutional Class shares, and Class B shares will receive Adviser Class shares, respectively, of the Investment Grade Fund. 2. High Yield II Fund will be combined with the assets of the High Yield Portfolio of the Trust (the "High Yield Fund"), in exchange for shares of the High Yield Fund. Class A shares will receive Institutional Class shares, and Class B shares will receive Adviser Class shares, respectively, of the High Yield Fund. 3. Special Purpose Fund will be combined with the assets of the Core Plus Fixed Income Portfolio of the Trust (the "Core Plus Fund"), in exchange for shares of the Core Plus Fund. Shareholders of the Special Purpose Fund will receive Institutional Class shares of the Core Plus Fund. Each of the three surviving funds is separately referred to as "an Acquiring Fund", and collectively they are referred to as "the Acquiring Funds". As a result of the Reorganization of your Fund, you will become a shareholder of your Fund's respective Acquiring Fund and will receive shares of the Acquiring Fund with a value equal to the value of your holdings in your Fund (the "Reorganizations"). The Acquiring Funds are each portfolios of the Trust, a mutual fund consisting of 29 portfolios. The investment objective of each Acquiring Fund is to seek above-average total return over a market cycle of three to five years. For a more detailed description of the investment objective of each Acquiring Fund see "Comparison of Investment Objectives, Policies and Restrictions" below. This Proxy Statement and Prospectus sets forth concisely information about the Acquiring Funds that shareholders of the Target Funds should know before voting on the Reorganization Agreement of their Fund. This Proxy Statement and Prospectus also constitutes a Prospectus of each Acquiring Fund. A copy of the Prospectus for each Acquiring Fund (and for the Special Purpose Fund) dated January 31, 2002, and a copy of the Annual Report for each Acquiring Fund (and for the Special Purpose Fund) for the fiscal year ended September 30, 2001 are attached as Exhibits C and D, respectively, and are incorporated herein by reference. A Statement of Additional Information relating to the Reorganizations described in this Proxy Statement and Prospectus dated March 25, 2002 has been filed with the Securities and Exchange Commission (the "SEC") and is also incorporated herein by reference. Also incorporated herein by reference are the Prospectuses of the Fixed Income III Fund and the High Yield II Fund dated May 1, 2001, and the Annual Report dated December 31, 2001 of the Fixed Income III Fund and the High Yield II Fund. Copies of such documents, including the Statement of Additional Information, can be obtained without charge by calling (800) 548-7786. Investors are advised to read and retain this Proxy Statement and Prospectus for future reference. THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SEC OR ANY STATE SECURITIES COMMISSION, NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED ON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
4974th Page of 98TOC1stPreviousNextBottomJust 4th
TABLE OF CONTENTS [Enlarge/Download Table] Page ---- INTRODUCTION............................................................................... 1 General................................................................................. 1 Record Date; Share Information.......................................................... 2 Proxies................................................................................. 2 The Proxy Solicitation Process.......................................................... 3 Vote Required........................................................................... 3 SYNOPSIS................................................................................... 4 The Reorganizations..................................................................... 4 Fee Tables/Examples..................................................................... 5 I) Reorganization of the Fixed Income III Fund into the Investment Grade Fund:..... 5 II) Reorganization of the High Yield II Fund into the High Yield Fund:............. 6 III) Reorganization of the Special Purpose Fund into the Core Plus Fund:........... 7 Tax Consequences of the Reorganizations................................................. 7 Comparison of the Target Fund and the Acquiring Fund.................................... 7 I) Fixed Income III Fund vs. Investment Grade Fund:................................ 7 II) High Yield II Fund vs. High Yield Fund:........................................ 9 III) Special Purpose Fund vs. Core Plus Fund:...................................... 12 THE REORGANIZATIONS........................................................................ 14 The Boards' Considerations.............................................................. 14 I) Reorganization of the Fixed Income III Fund:.................................... 14 II) Reorganization of the High Yield II Fund:...................................... 14 III) Reorganization of the Special Purpose Fund:................................... 15 IV) The Board of the Acquiring Funds:.............................................. 15 The Reorganization Agreements........................................................... 15 Tax Aspects of the Reorganizations...................................................... 17 Description of Shares................................................................... 19 Capitalization Tables (unaudited)....................................................... 19 Appraisal Rights........................................................................ 20 COMPARISON OF INVESTMENT OBJECTIVES, POLICIES AND RESTRICTIONS............................. 21 I) Fixed Income III Fund vs. Investment Grade Fund:................................ 21 II) High Yield II Fund vs. High Yield Fund:........................................ 22 III) Special Purpose Fund vs. Core Plus Fund:...................................... 23 ADDITIONAL INFORMATION ABOUT THE TARGET FUNDS AND THE ACQUIRING FUNDS.................................................................................... 25 General................................................................................. 25 Financial Information................................................................... 25 Management.............................................................................. 25 Description of Securities and Shareholder Inquiries..................................... 25 Dividends, Distributions and Taxes...................................................... 25 Purchases, Repurchases and Redemptions.................................................. 25 MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE................................................ 25 FINANCIAL STATEMENTS AND EXPERTS........................................................... 26 i
4975th Page of 98TOC1stPreviousNextBottomJust 5th
[Download Table] TABLE OF CONTENTS (cont'd) Page ---- LEGAL MATTERS............................................................... 26 AVAILABLE INFORMATION....................................................... 26 OTHER BUSINESS.............................................................. 27 Exhibit A - Form of Agreement and Plan of Reorganization Exhibit B - Control Persons and Ownership of Officers and Trustees/Directors Exhibit C - Prospectuses of the Acquiring Funds Exhibit D - Annual Report of the Acquiring Funds ii
4976th Page of 98TOC1stPreviousNextBottomJust 6th
MORGAN STANLEY INSTITUTIONAL FUND, INC. Fixed Income III Portfolio High Yield II Portfolio P.O. Box 2798 Boston, Massachusetts 02208-2798 (800) 548-7786 MORGAN STANLEY INSTITUTIONAL FUND TRUST Special Purpose Fixed Income Portfolio One Tower Bridge 100 Front Street, Suite 1100 West Conshohocken, PA 19428-2881 (800) 548-7786 PROXY STATEMENT AND PROSPECTUS Special Joint Meeting of Shareholders to be held on May 15, 2002 INTRODUCTION General This Proxy Statement and Prospectus is being furnished to the shareholders of the Fixed Income III Portfolio (the "Fixed Income III Fund"), the High Yield II Portfolio (the "High Yield II Fund"), each a portfolio of the Morgan Stanley Institutional Fund, Inc. (the "Company"), and the Special Purpose Fixed Income Portfolio (the "Special Purpose Fund"), a portfolio of Morgan Stanley Institutional Fund Trust (the "Trust") (separately referred to as "a Fund" or "your Fund", and collectively referred to as "the Funds" or "the Target Funds"), in connection with the solicitation by the Board of Directors of the Company and the Board of Trustees of the Trust (the "Boards") of proxies to be used at the Special Joint Meeting of Shareholders to be held in the offices of Morgan Stanley Investment Management Inc., 1221 Avenue of the Americas, 5th Floor, Conference Room 1A, New York, NY, at 8:30 A.M., New York time, on May 15, 2002, and any adjournments thereof (the "Meeting"). It is expected that the mailing of the Proxy Statement and Prospectus will be made on or about March 26, 2002. At the Meeting, each Target Fund's shareholders ("Shareholders") will consider and vote upon an Agreement and Plan of Reorganization for its Fund, dated January 23, 2002 (the "Reorganization Agreement"). Pursuant to the Reorganization Agreements, substantially all of the assets of: 1. Fixed Income III Fund will be combined with the assets of the Investment Grade Fixed Income Portfolio of the Trust (the "Investment Grade Fund"), in exchange for shares of the Investment Grade Fund. Class A shares will receive Institutional Class shares, and Class B shares will receive Adviser Class shares, respectively, of the Investment Grade Fund. 2. High Yield II Fund will be combined with the assets of the High Yield Portfolio of the Trust (the "High Yield Fund"), in exchange for shares of the High Yield Fund. Class A shares will receive Institutional Class shares, and Class B shares will receive Adviser Class shares, respectively, of the High Yield Fund. 3. Special Purpose Fund will be combined with the assets of the Core Plus Fixed Income Portfolio of the Trust (the "Core Plus Fund"), in exchange for shares of the Core Plus Fund. Shareholders of the Special Purpose Fund will receive Institutional Class shares of the Core Plus Fund.
4977th Page of 98TOC1stPreviousNextBottomJust 7th
Each of the three surviving funds is separately referred to as "an Acquiring Fund", and collectively they are referred to as "the Acquiring Funds". As a result of the Reorganization of your Fund, you will become a shareholder of your Fund's respective Acquiring Fund and will receive shares of the Acquiring Fund with a value equal to the value of your holdings in your Fund (the "Reorganizations"). The terms and conditions of these transactions are more fully described in this Proxy Statement and Prospectus and in the form of Reorganization Agreement attached hereto as Exhibit A. The shares to be issued by the Acquiring Funds pursuant to the Reorganizations will be issued at net asset value. Record Date; Share Information The Boards have fixed the close of business on February 19, 2002 as the record date (the "Record Date") for the determination of the shareholders entitled to notice of, and to vote at, the Meeting. As of the Record Date, there were 21,889,453.572 Class A shares of the Fixed Income III Fund, 224,162.803 Class B shares of the Fixed Income III Fund, 15,356,865.678 Class A shares of the High Yield II Fund, 1,898,065.304 Class B shares of the High Yield Fund and 23,335,889.659 shares of the Special Purpose Fund issued and outstanding. Shareholders on the Record Date are entitled to one vote per share on each matter relevant to their Fund submitted to a vote at the Meeting. For the Fixed Income III Fund and the High Yield II Fund, a majority of the outstanding shares entitled to vote, represented in person or by proxy, will constitute a quorum at the Meeting. For the Special Purpose Fund, 40% of the outstanding shares entitled to vote, represented in person or by proxy, will constitute a quorum at the Meeting. For information regarding the more than 5% shareholders of each Target Fund and each Acquiring Fund, and the ownership of the officers and Directors/Trustees of each Target Fund and each Acquiring Fund see Exhibit B attached hereto. Proxies The enclosed form of proxy, if properly executed and returned, will be voted in accordance with the choice specified thereon. The proxy will be voted in favor of the Reorganization of your Fund unless a choice is indicated to vote against or to abstain from voting on the Reorganization of your Fund. The Boards know of no business, other than that set forth in the Notice of Special Joint Meeting of Shareholders, to be presented for consideration at the Meeting. However, the proxy confers discretionary authority upon the persons named therein to vote as they determine on other business, not currently contemplated, which may come before the Meeting. For purposes of determining whether a quorum is present at the Meeting, abstentions and, if applicable, broker "non-votes" will be treated as shares that are present, but which have not been voted. Broker "non-votes" are shares held in street name for which the broker indicates that instructions have not been received from the beneficial owners or other persons entitled to vote and for which the broker does not have discretionary voting authority. If a Shareholder executes and returns a proxy but fails to indicate how the votes should be cast, the proxy will be voted in favor of the Reorganization of your Fund. The proxy may be revoked at any time prior to the voting thereof by: (i) delivering written notice of revocation to the Secretary of your Fund; (ii) attending the Meeting and voting in person; or (iii) completing and returning a new proxy (whether by mail or, as discussed below, by touchtone telephone or the Internet) (if returned and received in time to be voted). Attendance at the Meeting will not in and of itself revoke a proxy. In the event that the necessary quorum to transact business or the vote required to approve or reject the Reorganization of your Fund is not obtained at the Meeting, the persons named as proxies may propose one or more adjournments of the Meeting in accordance with applicable law to permit further solicitation of proxies. Any such adjournment will require the affirmative vote of the holders of a majority of shares of the Target Fund present in person or by proxy at the Meeting. The persons named as proxies will vote in favor of such adjournment for those proxies which they are entitled to vote in favor of the Reorganization of your Fund, and 2
4978th Page of 98TOC1stPreviousNextBottomJust 8th
will vote against any such adjournment for those proxies required to be voted against the Reorganization of your Fund. The Proxy Solicitation Process All expenses of this solicitation, including the cost of preparing and mailing this Proxy Statement and Prospectus, will be borne equally by the Target Funds, and are expected to be approximately $165,000. The Target Funds and the Acquiring Funds will each bear all of their respective other expenses associated with the Reorganization of the Funds. In addition to the solicitation of proxies by mail, proxies may be solicited by officers of your Fund, and officers and regular employees of Morgan Stanley Investment Management Inc. ("MSIM") on behalf of the Company, and Morgan Stanley Investments LP ("MSI") on behalf of the Trust, personally or by telephone, telegraph or otherwise, without compensation therefor. Brokerage houses, banks and other fiduciaries may be requested to forward soliciting material to the beneficial owners of shares and to obtain authorization for the execution of proxies. Shareholders will be able to vote their shares by touchtone telephone or by Internet by following the instructions included with the proxy card accompanying this Proxy Statement and Prospectus. To vote by touchtone telephone, Shareholders can call the toll-free number 1-800-597-7836. To vote by Internet, shareholders can go to http://vote.proxy-direct.com, enter the 14 digit control number included with your proxy card, and follow the recorded or on-screen directions. Do not mail your proxy card when you vote by phone or Internet. In certain instances, MSIM or MSI may call Shareholders to ask if they would be willing to have their votes recorded by telephone. The telephone voting procedure is designed to authenticate Shareholders' identities, to allow Shareholders to authorize the voting of their shares in accordance with their instructions and to confirm that their instructions have been recorded properly. No recommendation will be made as to how a Shareholder should vote on the Reorganization of their Fund other than to refer to the recommendation of the Board. Although a Shareholder's vote may be taken by telephone, each Shareholder will receive a copy of this Proxy Statement and Prospectus and may vote by mail using the enclosed proxy card or by touchtone telephone or the Internet as set forth above. The last proxy vote received in time to be voted, whether by proxy card, touchtone telephone or Internet, will be the vote that is counted and will revoke all previous votes by the Shareholder. Vote Required Shareholders of each Fund will vote separately on the approval of the Reorganization Agreement for their Fund. Approval of the Reorganization Agreement for the Fixed Income III Fund and the High Yield II Fund requires the affirmative vote of a majority (i.e., more than 50%) of the shares of the Fund represented in person or by proxy and entitled to vote at the Meeting, provided a quorum is present at the Meeting. Approval of the Reorganization Agreement for the Special Purpose Fund requires the affirmative vote of either (a) 67% or more of the shares of the Fund represented in person or by proxy and entitled to vote at the meeting if 50% or more of the outstanding shares are present at the meeting; or (b) more than 50% of the outstanding shares entitled to vote at the meeting whichever is less, provided a quorum is present at the meeting. If the Reorganization of your Fund is not approved by the Shareholders of your Fund, the Reorganization may nevertheless proceed with respect to the other Funds, and your Fund will continue in existence and the Board will consider alternative actions. 3
4979th Page of 98TOC1stPreviousNextBottomJust 9th
SYNOPSIS The following is a synopsis of certain information contained in or incorporated by reference in this Proxy Statement and Prospectus. This synopsis is only a summary and is qualified in its entirety by the more detailed information contained or incorporated by reference in this Proxy Statement and Prospectus and the Reorganization Agreement. Shareholders should carefully review this Proxy Statement and Prospectus and the Reorganization Agreement in their entirety and, in particular, the Acquiring Funds Prospectuses, which are attached to this Proxy Statement and Prospectus as Exhibit C and incorporated herein by reference. The Reorganizations The Reorganization Agreement for each Target Fund provides that substantially all of the assets of: 1. Fixed Income III Fund will be combined with the assets of the Investment Grade Fund, subject to stated liabilities, in exchange for shares of the Investment Grade Fund. Class A shares will receive Institutional Class shares, and Class B shares will receive Adviser Class shares, respectively, of the Investment Grade Fund. 2. High Yield II Fund will be combined with the assets of the High Yield Fund, subject to stated liabilities, in exchange for shares of the High Yield Fund. Class A shares will receive Institutional Class shares, and Class B shares will receive Adviser Class shares, respectively, of the High Yield Fund. 3. Special Purpose Fund will be combined with the assets of the Core Plus Fund, subject to stated liabilities, in exchange for shares of the Core Plus Fund. Shareholders of the Special Purpose Fund will receive Institutional Class shares of the Core Plus Fund. The aggregate net asset value of the Acquiring Fund shares issued in these exchanges will equal the aggregate value of the net assets of your Fund received by the Acquiring Fund. On or after the closing date scheduled for the Reorganization of your Fund (the "Closing Date"), your Fund will distribute to you the Acquiring Fund shares received by your Fund as of the Valuation Date (as defined below under "The Reorganization Agreement") in complete liquidation of your Fund and your Fund will thereafter be liquidated. As a result of the Reorganization of your Fund, each Shareholder of your Fund will receive that number of full and fractional shares of the Acquiring Fund equal in value to such Shareholder's pro rata interest in the net assets of your Fund transferred to the Acquiring Fund. Accordingly, as a result of the Reorganization of your Fund, you will become a holder of the shares of the relevant Acquiring Fund. Shareholders holding their shares in certificate form will be asked to surrender their certificates in connection with the Reorganization. Shareholders who do not surrender their certificates prior to the Closing Date will still receive their shares of the relevant Acquiring Fund; however, such Shareholders will not be able to redeem, transfer or exchange the Acquiring Fund shares received until the old certificates have been surrendered. Your Board has determined that the interests of the Shareholders of your Fund will not be diluted as a result of the Reorganization of your Fund. At least one but not more than 20 business days prior to the Valuation Date, the Target Fund will declare and pay a dividend or dividends which, together with all previous such dividends, will have the effect of distributing to Shareholders all of the Target Fund investment company taxable income for all periods since the inception of the Target Fund through and including the Valuation Date (computed without regard to any dividends paid deduction), and all of the Target Fund's net capital gain, if any, realized in such periods (after reduction for any capital loss carryforward). For the reasons set forth below under "The Reorganization--The Board's Consideration," the Boards, including the Trustees/Directors who are not "interested persons" of the Company/Trust, on behalf of your Fund ("Independent Trustees"), as that term is defined in the Investment Company Act of 1940, as amended (the "1940 Act"), have concluded that the Reorganization of your Fund is in the best interests of your Fund and its Shareholders and recommend approval of the Reorganization of your Fund. 4
49710th Page of 98TOC1stPreviousNextBottomJust 10th
Fee Tables/Examples Your Fund and the Acquiring Funds each pay expenses for management of their assets and other services, and those expenses are reflected in the net asset value per share of each fund. The following tables briefly describe the fees and expenses that a Shareholder of your Fund and a Shareholder of the relevant Acquiring Fund may pay if they buy and hold shares of each respective fund. The tables also set forth pro-forma fees for the surviving combined fund (the relevant Acquiring Fund) assuming consummation of the Reorganizations. I) Reorganization of the Fixed Income III Fund into the Investment Grade Fund: Shareholder Fees--None Annual Fund Operating Expenses (expenses that are deducted from Fund assets) [Enlarge/Download Table] Fixed Income III Investment Grade Investment Grade Fund Fund (1) Fund (2) Pro Forma Combined (3) ----------------- ------------------------- ------------------------- Management Fees....... Class A .350% Institutional Class .375% Institutional Class .375% Class B .350% Adviser Class .375% Adviser Class .375% Distribution and Service (12b-1) Fees Class A--% Institutional Class--% Institutional Class--% Class B (5) .250% Adviser Class--% (6) Adviser Class (5) .250% Other Expenses........ Class A .210% Institutional Class .125% Institutional Class .115% Class B .210% Adviser Class--% Adviser Class .115% Total Annual Fund Operating Expenses.. Class A (4) .560% Institutional Class .500% Institutional Class .490% Class B (4) .710% Adviser Class--% Adviser Class .640% -------- (1) Based on expenses paid for the fiscal year ended December 31, 2001. (2) Based on expenses paid for the fiscal year ended September 30, 2001. (3) Reflects what the expenses would have been on September 30, 2001 if the Reorganization had been consummated twelve months prior to that date. (4) Pursuant to a voluntary expense cap which may be lifted at any time, actual operating expenses of Class A and Class B shares were 0.45% and .60%, respectively. (5) Morgan Stanley & Co. Incorporated currently waives .10% of the .25% distribution fee it is entitled to receive with respect to Class B Shares of Fixed Income III Fund. This waiver is voluntary and may be lifted at any time. If the Reorganization is consummated, Morgan Stanley Distribution, Inc. has similarly agreed to waive .10% of the .25% distribution fee it is entitled to receive with respect to Adviser Class Shares of Investment Grade Fund. (6) The Adviser Class of the Investment Grade Fund is not operational as of September 30, 2001 but will commence operations upon the consummation of the Reorganization. Example To attempt to show the effect of these expenses on an investment over time, the hypotheticals shown below have been created. The Example assumes that an investor invests $10,000 in either the Fixed Income III Fund or the Investment Grade Fund or the new combined fund, that the investment has a 5% return each year and that the operating expenses for each fund remain the same (as set forth in the chart above). Although a Shareholder's actual costs may be higher or lower, the table below shows a Shareholder's costs at the end of each period based on these assumptions whether a Shareholder sold or held his shares at the end of each period. [Download Table] 1 year 3 years 5 years 10 years ------ ------- ------- -------- Fixed Income III Fund (Class A).............. $57 $179 $313 $701 Fixed Income III Fund (Class B).............. $73 $227 $395 $883 Investment Grade Fund (Institutional Class).. $51 $160 $280 $628 Investment Grade Fund (Adviser Class)........ -- -- -- -- Pro-Forma Combined Fund (Institutional Class) $50 $157 $274 $616 Pro-Forma Combined Fund (Adviser Class)...... $65 $205 $357 $798 5
49711th Page of 98TOC1stPreviousNextBottomJust 11th
II) Reorganization of the High Yield II Fund into the High Yield Fund: Shareholder Fees--None Annual Fund Operating Expenses (expenses that are deducted from fund assets) [Enlarge/Download Table] High Yield II High Yield High Yield Fund Fund (1) Fund (2) Pro Forma Combined (3) ------------- ------------------------ ---------------------- Management Fees......... Institutional Class Class A .375% Institutional Class .450% .450% Adviser Class Class B .375% Adviser Class .450% .450% Distribution and Service Institutional (12b-1) Fees.......... Class A--% Institutional Class--% Class--% Adviser Class Class B .250% Adviser Class .250% .250% Other Expenses.......... Institutional Class Class A .275% Institutional Class .110% .120% Adviser Class Class B .275% Adviser Class .110% .120% Total Annual Fund Institutional Class Operating Expenses.... Class A .650% Institutional Class .560% .570% Adviser Class Class B .900% Adviser Class .810% .820% -------- (1) Based on expenses paid for the fiscal year ended December 31, 2001. (2) Based on expenses paid for the fiscal year ended September 30, 2001. (3) Reflects what the expenses would have been on September 30, 2001 if the Reorganization had been consummated twelve months prior to that date. Example To attempt to show the effect of these expenses on an investment over time, the hypotheticals shown below have been created. The Example assumes that an investor invests $10,000 in either the High Yield II Fund or the High Yield Fund or the new combined fund, that the investment has a 5% return each year and that the operating expenses for each fund remain the same (as set forth in the chart above). Although a Shareholder's actual costs may be higher or lower, the table below shows a Shareholder's costs at the end of each period based on these assumptions whether a Shareholder sold or held his shares at the end of each period. [Download Table] 1 year 3 years 5 years 10 years ------ ------- ------- -------- High Yield II Fund (Class A)................. $66 $208 $362 $ 810 High Yield II Fund (Class B)................. $92 $287 $498 $1,108 High Yield Fund (Institutional Class)........ $57 $179 $313 $ 701 High Yield Fund (Adviser Class).............. $83 $259 $450 $1,002 Pro-Forma Combined Fund (Institutional Class) $58 $183 $318 $ 714 Pro-Forma Combined Fund (Adviser Class)...... $84 $262 $455 $1,014 6
49712th Page of 98TOC1stPreviousNextBottomJust 12th
III) Reorganization of the Special Purpose Fund into the Core Plus Fund: Shareholder Fees--None Annual Fund Operating Expenses (expenses that are deducted from fund assets) [Enlarge/Download Table] Special Core Plus Fund Core Plus Fund Purpose Fund (1) (Institutional Class) (1) Pro Forma Combined (2) ---------------- ------------------------- ---------------------- Management Fees................. .375% .375% .375% Distribution and Service (12b-1) Fees.......................... -- -- -- Other Expenses.................. .120% .105% .095% Total Annual Fund Operating Expenses...................... .495% .480% .470% -------- (1) Based on expenses paid for the fiscal year ended September 30, 2001. (2) Reflects what the expenses would have been on September 30, 2001 if the Reorganization had been consummated twelve months prior to that date. Example To attempt to show the effect of these expenses on an investment over time, the hypotheticals shown below have been created. The Example assumes that an investor invests $10,000 in either the Special Purpose Fund or the Core Plus Fund or the new combined fund, that the investment has a 5% return each year and that the operating expenses for each fund remain the same (as set forth in the chart above). Although a Shareholder's actual costs may be higher or lower, the table below shows a Shareholder's costs at the end of each period based on these assumptions whether a Shareholder sold or held his shares at the end of each period. [Download Table] 1 Year 3 Years 5 Years 10 Years ------ ------- ------- -------- Special Purpose Fund.................... $51 $160 $280 $628 Core Plus Fund (Institutional Class).... $49 $154 $269 $604 Pro-Forma Combined (Institutional Class) $48 $151 $263 $591 Tax Consequences of the Reorganizations As a condition to each Reorganization, the Company on behalf of the Fixed Income III Fund and the High Yield II Fund, and the Trust on behalf of the Special Purpose Fund will receive an opinion of Mayer, Brown, Rowe & Maw to the effect that the Reorganization of each Fund will constitute a tax-free reorganization for federal income tax purposes, and that no gain or loss will be recognized by the Funds or the Shareholders of the Funds for federal income tax purposes as a result of the transactions included in the Reorganization of the Fund. For further information about the tax consequences of the Reorganization, see "The Reorganizations--Tax Aspects of the Reorganizations" below. Comparison of the Target Fund and the Acquiring Fund I) Fixed Income III Fund vs. Investment Grade Fund: Investment Objectives and Policies. The Fixed Income III Fund and the Investment Grade Fund have similar investment objectives. The Fixed Income III Fund seeks to produce a high total return consistent with the preservation of capital by investing primarily in a diversified portfolio of fixed income securities. The Investment Grade Fund seeks above-average total return over a market cycle of three to five years. Both Funds seek to achieve their investment objectives by investing primarily in a diversified mix of dollar-denominated fixed income securities, particularly U.S. Government, corporate and mortgage securities. Both Funds ordinarily maintain an average weighted maturity in excess of five years. Under normal market conditions, 7
49713th Page of 98TOC1stPreviousNextBottomJust 13th
both Funds invest at least 80% of their assets in fixed income securities. Both Funds invest exclusively in securities that carry an investment grade rating at the time of purchase. The investment objective of the Fixed Income III Fund is not fundamental and may be changed by its Board. The investment objective of the Investment Grade Fund is fundamental and cannot be changed without the vote of the majority of the outstanding voting securities of a fund, as defined in the 1940 Act. The investment policies of both Funds are essentially the same; the principal differences between them are described under "Comparison of Investment Objectives, Policies and Restrictions" below. Investment Management and Distribution Plan Fees. The Fixed Income III Fund obtains management services from MSIM, and the Investment Grade Fund obtains management services from MSI, an investment advisory affiliate of MSIM. MSI will serve as the investment adviser of the combined fund (the Investment Grade Fund) if the Reorganization is approved by Shareholders. With respect to the Fixed Income III Fund, the Fund pays MSIM monthly compensation calculated daily at an annual rate of 0.35% of the Fund's average daily net assets for both Class A and B shares. With respect to the Investment Grade Fund, the Fund pays MSI monthly compensation calculated daily at an annual rate of 0.375% of the Fund's average daily net assets for both the Institutional and the Adviser Classes of shares. Both the Fixed Income III Fund and the Investment Grade Fund are managed by the same portfolio management team. If the Reorganization is approved by Shareholders, this team will remain the portfolio management team for the combined fund. The Fixed Income III Fund obtains distribution services from Morgan Stanley & Co., and the Investment Grade Fund obtains management services from Morgan Stanley Distribution, Inc. Morgan Stanley Distribution, Inc. will serve as the distributor of the combined fund (the Investment Grade Fund) if the Reorganization is approved by Shareholders. Both the Class B shares of the Fixed Income III Fund and the Adviser Class shares of the Investment Grade Fund have adopted a distribution plan ("Plan") pursuant to Rule 12b-1 under the 1940 Act whereby each class pays its distributor a distribution fee of 0.25% of the class's shares average daily net assets on an annualized basis. With respect to the Fixed Income III Fund, its distributor has agreed to waive 0.10% of the 0.25% distribution fee it is entitled to receive from the Fund. There is no such waiver agreement in place for the Adviser Class shares of the Investment Grade Fund. However, if the Reorganization is approved, the distributor has voluntarily agreed to waive .10% of its 12b-1 fee. For further information relating to the 12b-1 fees applicable to the Investment Grade Fund, see the section entitled "Distribution of Shares" in the Trust's Statement of Additional Information. Other Significant Fees. Both the Fixed Income III Fund and the Investment Grade Fund pay additional fees in connection with their operations, including legal, auditing, transfer agent, trustees fees and custodial fees. See "Synopsis--Fee Tables/Example" above for the percentage of average net assets represented by such "Other Expenses." Purchases, Exchanges and Redemptions. Shares of both the Fixed Income III Fund and the Investment Grade Fund are sold at net asset value without an initial sales charge. Shares of both the Fixed Income III Fund and the Investment Grade Fund may be redeemed for cash without redemption or other charges at any time at the net asset value per share next determined following receipt of a redemption request. Shares of both the Fixed Income III Fund and the Investment Grade Fund may be exchanged for shares of other available portfolios of the Company or the Trust without the imposition of an exchange fee. Both the Fixed Income III Fund and the Investment Grade Fund provide telephone exchange privileges to their shareholders. For greater details relating to exchange privileges applicable to the Investment Grade Fund, see the section entitled "Exchange Privilege" in the relevant Trust Prospectus. The Fixed Income III Fund may redeem involuntarily, at net asset value, an account whose value remains below $100,000 for a continuous 60-day period due to shareholder redemptions. The Investment Grade Fund is not subject to such a limitation. 8
49714th Page of 98TOC1stPreviousNextBottomJust 14th
Dividends. The policy of the Fixed Income III Fund is to distribute to Shareholders substantially all of its net investment income, if any, in the form of a monthly dividend and to distribute net realized capital gains, if any, at least annually. The policy of the Investment Grade Fund is to distribute to Shareholders substantially all of its net investment income, if any, in the form of a quarterly dividend and to distribute net realized capital gains, if any, at least annually. In both cases, the Funds automatically reinvest all dividends and distributions in additional shares of the Funds unless the Shareholder elects to receive cash. Structure. The Fixed Income III Fund is a portfolio of a Maryland corporation. Shareholders of a Maryland corporation are not personally liable for the obligations of the company. The Investment Grade Fund is a portfolio of a Pennsylvania business trust. Under Pennsylvania law, shareholders of a business trust may, under certain limited circumstances, be held personally liable as partners for the obligations of the trust. However, the Declaration of Trust for the Trust contains an express disclaimer of shareholder liability for acts or obligations of the Fund, requires that notice of such Fund obligations include such disclaimer, and provides for indemnification out of the Fund's assets for any shareholder held personally liable for obligations of the Fund. Thus the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances in which the Fund itself would be unable to meet its obligations. Principal Risk Factors. The principal risk factors for the Fixed Income III Fund and the Investment Grade Fund are essentially identical. The Funds are subject to the risks of investing in fixed income securities. The prices of fixed income securities respond to economic developments, particularly interest rate changes and changes in the actual or perceived creditworthiness of the issuer of the fixed income security. Securities with longer durations are likely to be more sensitive to changes in interest rates, generally making them more volatile than securities with shorter durations. Lower rated fixed income securities have greater volatility because there is less certainty that principal and interest payments will be made as scheduled. Prices of fixed income securities generally will move in correlation to changes in an issuer's credit rating. Mortgage securities are subject to the risk that if interest rates decline, borrowers may pay off their mortgages sooner than expected. The Funds' return may be reduced if prepayments occur and the Fund has to reinvest at lower interest rates. Prepayment rates can also shorten or extend the average life of the Funds' mortgage securities. Foreign fixed income securities may involve greater risks than those issued by U.S. companies or the U.S. government. Economic, political and other events unique to a country or region will affect those markets and their issuers, but may not affect the U.S. market or similar U.S. issuers. Some of the Fund's investments may be denominated in a foreign currency. Changes in the values of those currencies compared to the U.S. dollar may affect the value of the Fund's investments. The Funds are subject to the risks of using derivatives. A derivative instrument may involve risks different from, or greater than, the risks of investing directly in the underlying asset. A derivative instrument may be illiquid and changes in its value may not correlate to changes in the value of its underlying asset, which may magnify losses. The foregoing discussion is a summary of the principal risk factors. For a more complete discussion of the risks of each Fund, see "Investment Summary--Fixed Income Portfolio--Risks" and "Additional Risk Factors and Information" in the Prospectus of the Company and "Investment Summary--Fixed Income--Principal Risks" and "Investment Strategies and Related Risks" in the Trust's Prospectus attached hereto and incorporated herein by reference. II) High Yield II Fund vs. High Yield Fund: Investment Objectives and Policies. The High Yield II Fund and the High Yield Fund have similar investment objectives. The High Yield II Fund seeks to maximize total return by investing primarily in a 9
49715th Page of 98TOC1stPreviousNextBottomJust 15th
diversified portfolio of high yield fixed income securities that offer a yield above that generally available on debt securities in the four highest rating categories of the recognized rating services. The High Yield Fund seeks above average total return over a market cycle of three to five years. Under normal circumstances, both Funds seek to achieve their investment objectives by investing at least 80% of their assets in high yield securities. The investment objective of the High Yield II Fund is not fundamental and may be changed by its Board. The investment objective of the High Yield Fund is fundamental and cannot be changed without the vote of the majority of the outstanding voting securities of the Fund, as defined in the 1940 Act. The investment policies of both Funds are essentially the same; the principal differences between them are described under "Comparison of Investment Objectives, Policies and Restrictions" below. Investment Management and Distribution Plan Fees. The High Yield II Fund obtains management services from MSIM, and the High Yield Fund obtains management services from MSI. MSI will serve as the investment adviser to the combined fund (the High Yield Fund) if the Reorganization is approved by Shareholders. With respect to the High Yield II Fund, the Fund pays MSIM monthly compensation calculated daily at an annual rate of 0.375% of the Fund's average daily net assets for both Class A and B shares of the Fund. With respect to the High Yield Fund, the portfolio pays MSI monthly compensation calculated daily at an annual rate of 0.45% of the Fund's average daily net assets for both of the Institutional and Adviser Classes of shares of the Fund. Both the High Yield Fund and the High Yield II Fund are managed by the same portfolio management team. If the reorganization is approved by Shareholders, this team will remain the portfolio management team for the combined fund. The High Yield II Fund obtains distribution services from Morgan Stanley & Co., and the High Yield Fund obtains management services from Morgan Stanley Distribution, Inc. Morgan Stanley Distribution, Inc. will serve as the distributor of the combined fund (the High Yield Fund) if the Reorganization is approved by Shareholders. Both the Class B shares of the High Yield II Fund and the Adviser Class of shares of the High Yield Fund have adopted a Plan pursuant to Rule 12b-1 under the 1940 Act whereby each class pays its distributor a distribution fee of 0.25% of the class's shares average daily net assets on an annualized basis. For further information relating to the 12b-1 fees applicable to the High Yield Fund's Adviser Class shares, see the section entitled "Distribution of Shares" in the Trust's Statement of Additional Information. Other Significant Fees. Both the High Yield II Fund and the High Yield Fund pay additional fees in connection with their operations, including legal, auditing, transfer agent, trustees fees and custodial fees. See "Synopsis--Fee Tables/Example" above for the percentage of average net assets represented by such "Other Expenses." Purchases, Exchanges and Redemptions. Shares of both the High Yield II Fund and the High Yield Fund are sold at net asset value without an initial sales charge. Shares of both the High Yield II Fund and the High Yield Fund may be redeemed for cash without redemption or other charge at any time at the net asset value per share next determined following receipt of a redemption request. Shares of both the High Yield II Fund and the High Yield Fund may be exchanged for shares of other available portfolios of the Company or the Trust without the imposition of an exchange fee. Both the High Yield II Fund and the High Yield Fund provide telephone exchange privileges to their shareholders. For greater details relating to exchange privileges applicable to the High Yield Fund, see the section entitled "Exchange Privilege" in the relevant Trust Prospectus. The High Yield II Fund may redeem involuntarily, at net asset value, an account whose value remains below $100,000 for a continuous 60-day period due to shareholder redemptions. The High Yield Fund is not subject to such a limitation. Dividends. Both the High Yield II Fund and the High Yield Fund pay dividends from net investment income quarterly. The High Yield II Fund distributes net realized capital gains, if any, at least annually. The High 10
49716th Page of 98TOC1stPreviousNextBottomJust 16th
Yield Fund distributes net realized capital gains, if any, at least annually. In both cases, the Funds automatically reinvest all dividends and distributions in additional shares of the Funds at net asset value unless the Shareholder elects to receive cash. Structure. The High Yield II Fund is a portfolio of a Maryland corporation. Shareholders of a Maryland corporation are not personally liable for the obligations of the company. The High Yield Fund is a portfolio of a Pennsylvania business trust. Under Pennsylvania law, shareholders of a business trust may, under certain limited circumstances, be held personally liable as partners for the obligations of the trust. However, the Declaration of Trust for the Trust contains an express disclaimer of shareholder liability for acts or obligations of the Fund, requires that notice of such Fund obligations include such disclaimer, and provides for indemnification out of the Fund's assets for any shareholder held personally liable for obligations of the Fund. Thus the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances in which the Fund itself would be unable to meet its obligations. Principal Risk Factors. The risk factors for both High Yield II Fund and the High Yield Fund are essentially identical. Both of the Funds are subject to the risks of investing in fixed income securities. The prices of fixed income securities respond to economic developments, particularly interest rate changes and changes in the actual or perceived creditworthiness of the issuer of the fixed income security. Securities with longer durations are likely to be more sensitive to changes in interest rates, generally making them more volatile than securities with shorter durations. Lower rated fixed income securities have greater volatility because there is less certainty that principal and interest payments will be made as scheduled. Prices of fixed income securities generally will move in correlation to changes in an issuer's credit rating. The Funds' investments in high yield securities expose them to a substantial degree of credit risk. These investments are considered speculative under traditional investment standards. Prices of high yield securities will rise and fall primarily in response to changes in the issuer's financial health, although changes in market interest rates also will affect prices. High yield securities may experience reduced liquidity and sudden and substantial decreases in price. Mortgage securities are subject to the risk that if interest rates decline, borrowers may pay off their mortgages sooner than expected. The Funds' return may be reduced if prepayments occur and the Fund has to reinvest at lower interest rates. Prepayment rates can also shorten or extend the average life of the Funds' mortgage securities. Foreign fixed income securities may involve greater risks than those issued by U.S. companies or the U.S. government. Economic, political and other events unique to a country or region will affect those markets and their issuers, but may not affect the U.S. market or similar U.S. issuers. Some of the Fund's investments may be denominated in a foreign currency. Changes in the values of those currencies compared to the U.S. dollar may affect the value of the Fund's investments. These risks are greater in emerging market countries. The Funds are subject to the risks of using derivatives. A derivative instrument may involve risks different from, or greater than, the risks of investing directly in the underlying asset. A derivative instrument may be illiquid and changes in its value may not correlate to changes in the value of its underlying asset, which may magnify losses. The foregoing discussion is a summary of the principal risk factors. For a more complete discussion of the risks of each Fund, see "Investment Summary-High Yield Portfolio-Risks" and "Additional Risk Factors and Information" in the Prospectus of the Company and "Investment Summary-High Yield-Principal Risks" and "Investment Strategies and Related Risks" in the Trust's Prospectus attached hereto and incorporated herein by reference. 11
49717th Page of 98TOC1stPreviousNextBottomJust 17th
III) Special Purpose Fund vs. Core Plus Fund: Investment Objectives and Policies. The Special Purpose Fund and the Core Plus Fund have identical investment objectives. Both Funds seek above-average total return over a market cycle of three to five years. Both Funds seek to achieve their investment objectives by investing primarily in a diversified mix of dollar-denominated fixed income securities, particularly U.S. Government, corporate and mortgage securities. Both Funds ordinarily maintain an average weighted maturity in excess of five years. Under normal market conditions, both Funds invest at least 80% of their net assets in fixed income securities. The investment objective of both the Special Purpose Fund and the Core Plus Fund is fundamental and cannot be changed without the vote of the majority of the outstanding voting securities of a fund, as defined in the 1940 Act. The investment policies of both Funds are essentially the same; the principal differences between them are described under "Comparison of Investment Objectives, Policies and Restrictions" below. Investment Management and Distribution Plan Fees. Both Funds obtain management services from MSI, and MSI will continue to serve as the investment adviser of the combined fund (the Core Plus Fund) if the Reorganization is approved by Shareholders. Both Funds, pay MSI monthly compensation calculated daily at an annual rate of 0.375% of the Fund's average daily net assets. Both Funds obtain distribution services from Morgan Stanley Distribution, Inc., and Morgan Stanley Distribution, Inc. will continue to serve as the distributor of the combined fund. Neither Fund imposes distribution plan fees on these classes of shares. Both Funds are managed by the same portfolio management team. If the Reorganization is approved by Shareholders, this team will remain the portfolio management team for the combined fund. Other Significant Fees. Both the Special Purpose Fund and the Core Plus Fund pay additional fees in connection with their operations, including legal, auditing, transfer agent, trustees fees and custodial fees. See "Synopsis--Fee Tables/Example" above for the percentage of average net assets represented by such "Other Expenses." Purchases, Exchanges and Redemptions. Shares of both the Special Purpose Fund and the Core Plus Fund are sold at net asset value without an initial sales charge. Shares of both the Special Purpose Fund and the Core Plus Fund may be redeemed for cash without redemption or other charges at any time at the net asset value per share next determined following receipt of a redemption request. Shares of the Special Purpose Fund and the Institutional Class shares of the Core Plus Fund can be exchanged for Institutional Class shares of other available portfolios of the Trust, or for Class A shares of available portfolios of the Company without the imposition of an exchange fee. Both the Special Purpose Fund and the Core Plus Fund provide telephone exchange privileges to their shareholders. For greater details relating to exchange privileges applicable to the Core Plus Fund, see the section entitled "Exchange Privilege" in the relevant Trust Prospectus. Dividends. The policy of both the Special Purpose Fund and the Core Plus Fund is to distribute to Shareholders substantially all of their net investment income, if any, in the form of a quarterly dividend and to distribute net realized capital gains, if any, at least annually. In both cases, the Funds automatically reinvest all dividends and distributions in additional shares of the Funds unless the Shareholder elects to receive cash. Principal Risk Factors. The Funds are subject to the risks of investing in fixed income securities. The prices of fixed income securities respond to economic developments, particularly interest rate changes and changes in the actual or perceived creditworthiness of the issuer of the fixed income security. Securities with longer durations are likely to be more sensitive to changes in interest rates, generally making them more volatile 12
49718th Page of 98TOC1stPreviousNextBottomJust 18th
than securities with shorter durations. Lower rated fixed income securities have greater volatility because there is less certainty that principal and interest payments will be made as scheduled. Prices of fixed income securities generally will move in correlation to changes in an issuer's credit rating. The Funds investments in high yield securities expose it to a substantial degree of credit risk. Prices of high yield securities will rise and fall primarily in response to actual or perceived changes in the issuer's financial health, although changes in market interest rates also will affect prices. High yield securities may experience reduced liquidity and sudden and substantial decreases in price. Mortgages securities are subject to the risk that if interest rates decline, borrowers may pay off their mortgages sooner than expected. The Fund's return may be reduced if prepayments occur and the Fund has to reinvest at lower interest rates. Prepayment rates can also shorten or extend the average life of the Fund's mortgage securities. Foreign fixed income securities may involve greater risks than those issued by U.S. companies or the U.S. government. Economic, political and other events unique to a country or region will affect those markets and their issuers, but may not affect the U.S. market or similar U.S. issuers. Some of the Fund's investments may be denominated in a foreign currency. Changes in the values of those currencies compared to the U.S. dollar may affect the value of the Fund's investments. The Funds are subject to the risks of using derivatives. A derivative instrument may involve risks different from, or greater than, the risks of investing directly in the underlying asset. A derivative instrument may be illiquid and changes in its value may not correlate to changes in the value of its underlying asset, which may magnify losses. The foregoing discussion is a summary of the principal risk factors. For a more complete discussion of the risks of each fund, see "Investment Summary--Special Purpose Fixed Income Fund--Risks" and "Additional Risk Factors and Information" in the Prospectus of the Trust and "Investment Summary--Core Plus Fund--Principal Risks" and "Investment Strategies and Related Risks" in the Trust's Prospectus attached hereto and incorporated herein by reference. 13
49719th Page of 98TOC1stPreviousNextBottomJust 19th
THE REORGANIZATIONS The Boards' Considerations At meetings held on January 23, 2002, the Board of Directors/Trustees of each Target Fund, including all of the Independent Directors/Trustees, unanimously approved the Reorganization of each Target Fund, and recommended its approval by shareholders of such Target Fund. In reaching this determination, each Board evaluated a variety of factors relating to (i) the economic costs and benefits to shareholders; (ii) the compatibility of the investment objectives, policies, restrictions and portfolios of each Fund; and (iii) the tax consequences to each Fund. Particular consideration was given to the following: I) Reorganization of the Fixed Income III Fund: 1. The Board noted that as a result of the Reorganization, Fixed Income III shareholders would become shareholders of a substantially larger fund with an expense ratio approximately .07% lower than the expense ratio of the Fixed Income III Fund (assuming that the Reorganization had occurred at the beginning of the Investment Grade Fund's most recent fiscal year). Although as a result of a voluntary expense cap in place for the Investment Grade Fund, the expense ratio of the combined fund would have been approximately .04% higher than the expense ratio of the Fixed Income III Fund's actual expense ratio for its most recent fiscal year, the Board viewed as significant the fact that the voluntary expense cap imposed by MSIM on the Fixed Income III Fund may be lifted at any time. 2. The Investment Grade Fund has approximately $6.2 million of capital loss carryforwards whereas the Fixed Income III Fund has none. As a result of the Reorganization, Fixed Income III shareholders should benefit to the extent that the Investment Grade Fund's capital loss carryforwards are available to offset capital gains realized by the combined fund. See "Tax Aspects of the Reorganization" below. 3. The Funds have substantially similar investment objectives and policies and are managed by the same team of portfolio managers. 4. The Reorganization is intended to qualify as a tax-free reorganization for Federal income tax purposes, pursuant to which no gain or loss will be recognized by the Fixed Income III Fund or its Shareholders for Federal income tax purposes as a result of transactions included in the Reorganization. 5. Absent the Reorganization, the Fixed Income III Fund will continue to compete for investor funds with the Investment Grade Fund. The Reorganization should allow for more concentrated selling efforts which may result in additional economies of scale through an increase in sales of the combined fund to the benefit of shareholders. II) Reorganization of the High Yield II Fund: 1. The Board noted that as a result of the Reorganization, High Yield II Fund shareholders would become shareholders of a larger fund with an expense ratio approximately .08% lower than that of the High Yield II Fund (assuming that the Reorganization had occurred at the beginning of the High Yield II Fund's most recent fiscal year). 2. The Funds have substantially similar investment objectives and policies and are managed by the same team of portfolio managers. 3. The Reorganization is intended to qualify as a tax-free reorganization for Federal income tax purposes, pursuant to which no gain or loss will be recognized by the High Yield II Fund or its Shareholders for Federal income tax purposes as a result of transactions included in the Reorganization. 14
49720th Page of 98TOC1stPreviousNextBottomJust 20th
4. Absent the Reorganization, the High II Yield Fund will continue to compete for investor funds with the High Yield Fund. The Reorganization should allow for more concentrated selling efforts which may result in additional economies of scale through an increase in sales of the combined fund to the benefit of shareholders. III) Reorganization of the Special Purpose Fund: 1. The Board noted that as a result of the Reorganization, Special Purpose Fund shareholders would become Shareholders of a substantially larger fund with an expense ratio approximately .02% lower than that of the Special Purpose Fund (assuming that the Reorganization had occurred at the beginning of the Core Plus Fund's most recent fiscal year). 2. The Funds have identical investment objectives, substantially similar policies, and are managed by the same team of portfolio managers. 3. The Core Plus Fund has approximately $15.7 million of capital loss carryforwards as of September 30, 2001 and the Special Purpose Fund has none. As a result of the Reorganization, Special Purpose Fund Shareholders should benefit to the extent that the Core Plus Fund's capital loss carryforwards are available to offset capital gains realized by the combined fund. See "Tax Aspects of the Reorganization" below. 4. The Reorganization is intended to qualify as a tax-free reorganization for Federal income tax purposes, pursuant to which no gain or loss will be recognized by the Special Purpose Fund or its Shareholders for Federal income tax purposes as a result of transactions included in the Reorganization. 5. Absent the Reorganization, the Special Purpose Fund will continue to compete for investor funds with the Core Plus Fund. The Reorganization should allow for more concentrated selling efforts which may result in additional economies of scale through an increase in sales of the combined fund to the benefit of Shareholders. IV) The Board of the Acquiring Funds: The Board of the Acquiring Funds, including a majority of the Independent Trustees, also have determined that the Reorganizations are in the best interests of each Acquiring Fund and its shareholders and that the interests of existing Shareholders will not be diluted as a result thereof. The transaction will enable the Acquiring Funds to acquire investment securities which are consistent with its investment objective without the costs attendant to the purchase of such securities in the market. In addition, like the Shareholders of the Target Funds, the shareholders of the Acquiring Funds may realize a benefit of having concentrated selling efforts on one rather than two similar funds which may result in additional economies of scale through an increase in sales. Also, the Board considered that even if the benefits enumerated above are not realized, the costs to the Acquiring Funds are sufficiently minor to warrant taking the opportunity to realize these benefits. The Reorganization Agreements The terms and conditions under which the Reorganizations would be consummated, as summarized below are set forth in the Reorganization Agreements. This summary is qualified in its entirety by reference to the Reorganization Agreement, a form of which is attached as Exhibit A to this Proxy Statement and Prospectus. The Reorganization Agreements provide that (i) the Target Fund will transfer all of its assets, including portfolio securities, cash (other than cash amounts retained by the Target Fund as a "Cash Reserve" in the amount sufficient to discharge its liabilities not discharged prior to the Valuation Date (as defined below) and for expenses of the dissolution), cash equivalents and receivables to the Acquiring Fund on the Closing Date in exchange for the assumption by the Acquiring Fund of stated liabilities of the Target Fund, including all expenses, costs, charges and reserves, as reflected on an unaudited statement of assets and liabilities of the Target Fund prepared by the Treasurer of the Company/Trust, on behalf of the Target Fund, as of the Valuation Date (as 15
49721st Page of 98TOC1stPreviousNextBottomJust 21st
defined below) in accordance with generally accepted accounting principles consistently applied from the prior audited period, and the delivery of the Acquiring Fund shares; (ii) such Acquiring Fund shares would be distributed to Shareholders on the Closing Date or as soon as practicable thereafter; (iii) The Target Fund would be liquidated; and (iv) the outstanding shares of Target Fund would be canceled. The number of Acquiring Fund shares to be delivered to the Target Fund will be determined by dividing the aggregate net asset value of the shares of the Target Fund acquired by the Acquiring Fund by the net asset value per share of the shares of the Acquiring Fund; these values will be calculated as of the close of business of the New York Stock Exchange on the third business day following the receipt of the requisite approval by Shareholders of the Reorganization Agreement or at such other time as the Target and Acquiring Funds may agree (the "Valuation Date"). As an illustration, assume that on the Valuation Date, Class A shares of the Target Fund had an aggregate net asset value (not including any Cash Reserve of the Target Fund) of $100,000. If the net asset value per share of the corresponding Institutional Class of the Acquiring Fund were $10 per share at the close of business on the Valuation Date, the number of shares of the Acquiring Fund to be issued would be 10,000 ($100,000 / $10). These 10,000 shares would be distributed to the former Class A Shareholders of the Target Fund. This example is given for illustration purposes only and does not bear any relationship to the dollar amounts or shares expected to be involved in the Reorganizations. On the Closing Date or as soon as practicable thereafter, each Target Fund will distribute pro rata to its Shareholders of record as of the close of business on the Valuation Date, the respective Acquiring Fund shares it receives. Each Shareholder will receive shares of the Acquiring Fund that corresponds to the shares of Target Fund currently held by that Shareholder. The Acquiring Fund will cause its transfer agent to credit and confirm an appropriate number of Acquiring Fund shares to each Shareholder. Certificates for Acquiring Fund shares will be issued only upon written request of a Shareholder and only for whole shares, with fractional shares credited to the name of the Shareholder on the books of Acquiring Fund. Shareholders who wish to receive certificates representing their Acquiring Fund shares must, after receipt of their confirmations, make a written request to the Trust's transfer agent J.P. Morgan Investor Services Company, 73 Tremont Street, Boston, Massachusetts 02108. Shareholders of the Target Fund holding their shares in certificate form will be asked to surrender such certificates in connection with the Reorganization of their Fund. Shareholders who do not surrender their certificates prior to the Closing Date will still receive their shares of the Acquiring Fund; however, such Shareholders will not be able to redeem, transfer or exchange the Acquiring Fund shares received until the old certificates have been surrendered. The Closing Date will be the next business day following the Valuation Date. The consummation of the Reorganization of your Fund is contingent upon the approval of the Reorganization of your Fund by the Shareholders of your Fund and the receipt of the other opinions and certificates set forth in Sections 6, 7 and 8 of the Reorganization Agreements and the occurrence of the events described in those Sections, certain of which may be waived by the Target Fund or the Acquiring Fund. The Reorganization Agreements may be amended in any mutually agreeable manner. All expenses of this solicitation, including the cost of preparing and mailing this Proxy Statement and Prospectus, will be borne equally by the Target Funds, which expenses are expected to approximate $165,000. Each Target Fund and its Acquiring Fund will bear all of their respective other expenses associated with the Reorganization. Each Reorganization Agreement may be terminated and the Reorganization abandoned at any time, before or after approval by Shareholders or by mutual consent of the Company, on behalf of the Fixed Income III Fund and the High Yield II Fund, and the Trust, on behalf of the Special Purpose Fund and the Acquiring Funds. In addition, either party may terminate the Reorganization Agreement upon the occurrence of a material breach of the Reorganization Agreement by the other party or if, by August 15, 2002, any condition set forth in the Reorganization Agreement has not been fulfilled or waived by the party entitled to its benefits. Under the Reorganization Agreement, within one year after the Closing Date, the Company, on behalf of the Fixed Income III Fund and the High Yield II Fund, and the Trust, on behalf of the Special Purpose Fund, shall: 16
49722nd Page of 98TOC1stPreviousNextBottomJust 22nd
either pay or make provision for all of its liabilities and distribute any remaining amount of the Cash Reserve (after paying or making provision for such liabilities and the estimated cost of making the distribution) to former Shareholders of the Target Funds that received Acquiring Fund shares. The Target Funds shall be liquidated promptly following the distributions of shares of the Acquiring Funds to Shareholders of record of the Target Funds. The effect of the Reorganization is that Shareholders who vote their shares in favor of the Reorganization of their Fund are electing to sell their shares of their Fund (at net asset value on the Valuation Date calculated after subtracting any Cash Reserve) and reinvest the proceeds in the corresponding Acquiring Fund shares at net asset value and without recognition of taxable gain or loss for Federal income tax purposes. See "Tax Aspects of the Reorganization" below. As noted in "Tax Aspects of the Reorganization" below, if the Target Fund recognizes net gain from the sale of securities prior to the Closing Date, such gain, to the extent not offset by capital loss carryforwards, will be distributed to Shareholders prior to the Closing Date and will be taxable to Shareholders as capital gain. Shareholders will continue to be able to redeem their shares of the Target Fund at net asset value next determined after receipt of the redemption request until the close of business on the business day next preceding the Closing Date. Redemption requests received by the Company, on behalf of the Fixed Income III Fund and the High Yield II Fund, and the Trust, on behalf of the Special Purpose Fund, thereafter will be treated as requests for redemption of shares of the Investment Grade Fund, High Yield Fund or Core Plus Fund, respectively. Tax Aspects of the Reorganizations Tax Consequences of the Reorganizations to the Shareholders. The Reorganizations are intended to qualify for Federal income tax purposes as tax-free reorganizations under Section 368(a)(1)(C) of the Internal Revenue Code of 1986, as amended (the "Code"). As a condition to the Reorganizations, the Company, on behalf of the Fixed Income III Fund and the High Yield II Fund, and the Trust on behalf of the Special Purpose Fund, will receive an opinion of Mayer, Brown, Rowe & Maw to the effect that, based on certain assumptions, facts, the terms of the Reorganization Agreements and representations set forth in the Reorganization Agreements or otherwise provided by the Company, on behalf of the Fixed Income III Fund and the High Yield II Fund, and the Trust on behalf of the Special Purpose Fund and the Acquiring Funds (including a representation to the effect that Acquiring Fund has no plan or intention to sell or otherwise dispose of more than sixty-six percent of the assets of the Target Fund acquired in the Reorganizations except for dispositions made in the ordinary course of business): 1. The transfer of the Target Fund assets in exchange for the Acquiring Fund shares and the assumption by the Acquiring Fund of certain stated liabilities of the Target Fund followed by the distribution by the Target Fund of the Acquiring Fund shares to Shareholders in exchange for their Target Fund shares pursuant to and in accordance with the terms of the Reorganization Agreements will constitute "reorganizations" within the meaning of Section 368(a)(1)(C) of the Code, and the Target Fund and the Acquiring Fund will each be a "party to a reorganization" within the meaning of Section 368(b) of the Code; 2. No gain or loss will be recognized by the Acquiring Fund upon the receipt of the assets of the Target Fund solely in exchange for the Acquiring Fund shares and the assumption by the Acquiring Fund of the stated liabilities of the Target Fund; 3. No gain or loss will be recognized by the Target Fund upon the transfer of the assets of the Target Fund to the Acquiring Fund in exchange for the Acquiring Fund shares and the assumption by the Acquiring Fund of the stated liabilities or upon the distribution of the Acquiring Fund shares to Shareholders in exchange for their Target Fund shares; 4. No gain or loss will be recognized by Shareholders upon the exchange of the shares of the Target Fund for the Acquiring Fund shares; 17
49723rd Page of 98TOC1stPreviousNextBottomJust 23rd
5. The aggregate tax basis for the Acquiring Fund shares received by each of the Shareholders pursuant to the Reorganizations will be the same as the aggregate tax basis of the shares in the Target Fund held by each such Shareholder immediately prior to the Reorganizations; 6. The holding period of the Acquiring Fund shares to be received by each Shareholder will include the period during which the shares in the Target Fund surrendered in exchange therefor were held (provided such shares in the Target Fund were held as capital assets on the date of the Reorganizations); 7. The tax basis of the assets of the Target Fund acquired by the Acquiring Fund will be the same as the tax basis of such assets of the Target Fund immediately prior to the Reorganizations; and 8. The holding period of the assets of the Target Fund in the hands of the Acquiring Fund will include the period during which those assets were held by the Target Fund. Shareholders should consult their tax advisors regarding the effect, if any, of the proposed transaction in light of their individual circumstances. Because the foregoing discussion only relates to the Federal income tax consequences of the proposed transaction, Shareholders should also consult their tax advisors as to state and local tax consequences, if any, of the proposed transaction. Tax Consequences of the Reorganizations to the Funds. Under the Code, the Reorganizations may result in limitations on the utilization of the capital loss carryovers and built-in capital losses of either the Target Fund or the Acquiring Fund. The amount of such limitations, if any, will depend on the existence and amount of a Fund's capital loss carryovers, built-in capital losses and built-in capital gains at the time of the Reorganizations. A Fund will have built-in capital gains if the fair market value of its assets on the date of the Reorganization exceeds its tax basis in such assets and a Fund will have built-in capital losses if its tax basis in its assets exceeds the fair market value of such assets on the date of the Reorganization. The Reorganization of Fixed Income III Fund into Investment Grade Fund. As of September 30, 2001, Investment Grade Fund had capital loss carryovers of approximately $6.2 million and Fixed Income III Fund had no capital loss carryovers. Investment Grade Fund's capital loss carryovers will be available to offset any capital gains recognized on the disposition of (i) assets acquired by the combined fund after the date of the Reorganization; (ii) assets of Fixed Income III Fund held by the combined fund, but only to the extent such capital gains are attributable to an increase in the value of such assets above fair market value of such assets on the date of the Reorganization; and (iii) assets of Investment Grade Fund held by the combined fund. However, the combined fund will be unable to utilize Investment Grade Fund's capital loss carryovers to offset any capital gains recognized on the disposition of Fixed Income III Fund's assets acquired in the Reorganization to the extent such capital gains are attributable to the built-in capital gains of such assets on the date of the Reorganization. As of September 30, 2001, Fixed Income III Fund had net unrealized capital gains of approximately $.8 million. The Reorganization of High Yield II Fund into High Yield Fund. As of September 30, 2001, High Yield II Fund had approximately $15.7 million of capital loss carryovers and approximately $54.9 million of net unrealized built-in capital losses and High Yield Fund had approximately $39.9 million of capital loss carryovers and approximately $344 million of net unrealized built-in capital losses. Under the Code, there will not be a limitation on the utilization of High Yield Fund's capital loss carryovers and recognized built-in capital losses to offset capital gains recognized by the combined fund. However, there will be a limitation on the ability of the combined fund to offset capital gains with High Yield II Fund's capital loss carryovers and, if the built-in losses are recognized within five years of the Reorganization, such recognized built-in capital losses. Although the actual amount of the limitation will be determined at the time of the Reorganization, if the Reorganization had occurred on September 30, 2001, approximately $6.3 million was the maximum amount of High Yield II Fund's capital loss carryovers and recognized built-in capital losses (if any) the combined fund would have been able to utilize in any year. 18
49724th Page of 98TOC1stPreviousNextBottomJust 24th
The Reorganization of Special Purpose Fund into Core Plus Fund. As of September 30, 2001, Special Purpose Fund had no capital loss carryovers and approximately $2.3 million of net unrealized built-in capital losses and Core Plus Fund had approximately $15.7 million of capital loss carryovers and approximately $12.9 million of net unrealized built-in capital losses. Under the Code, there will not be a limitation on the ability of the combined fund to offset capital gains with Special Purpose Fund's recognized built-in capital losses or Core Plus Fund's capital loss carryovers and recognized built-in capital losses. Description of Shares Institutional and Adviser Class shares of the Acquiring Fund to be issued pursuant to the Reorganization Agreements will, when issued, be fully paid and non-assessable by the Acquiring Fund and transferable without restrictions and will have no preemptive rights. Capitalization Tables (unaudited) The following tables set forth the capitalizations of the Acquiring Funds and the Target Funds as of December 31, 2001 and on a pro forma combined basis as if the Reorganization had occurred on that date: [Download Table] Net Asset Shares Value Per Net Assets Outstanding Share ------------ ----------- --------- Fixed Income III Fund: (Class A)..................................... $238,950,246 21,735,416 $10.99 (Class B)..................................... $ 2,848,031 259,488 $10.98 Investment Grade Fund: (Institutional Class)......................... $273,959,849 24,617,097 $11.13 (Adviser Class)............................... $ -- -- $ -- Combined Fund (Investment Grade Fund) (pro forma) (Institutional Class)......................... $512,910,095 46,084,546 $11.13 (Adviser Class)............................... $ 2,848,031 259,488 $10.98 [Download Table] Net Asset Shares Value Per Net Assets Outstanding Share ------------ ----------- --------- High Yield II Fund: (Class A)............................... $120,125,991 16,601,877 $7.24 (Class B)............................... $ 14,002,051 1,949,223 $7.18 High Yield Fund: (Institutional Class)................... $544,903,106 96,791,538 $5.63 (Investment Class)...................... $ 10,151,503 1,800,758 $5.64 (Adviser Class)......................... $103,993,178 18,538,414 $5.61 Combined Fund (High Yield Fund) (pro forma) (Institutional Class)................... $665,029,097 118,128,304 $5.63 (Investment Class)...................... $ 10,151,503 1,800,758 $5.64 (Adviser Class)......................... $117,995,229 21,034,323 $5.61 [Download Table] Net Asset Shares Value Per Net Assets Outstanding Share -------------- ----------- --------- Special Purpose Fund: $ 282,917,580 24,358,688 $11.61 Core Plus Fund: (Institutional Class).................. $3,929,677,684 337,944,836 $11.63 Combined Fund (Core Plus Fund) (pro forma) (Institutional Class).................. $4,212,595,264 362,271,369 $11.63 Appraisal Rights Shareholders will have no appraisal rights in connection with the Reorganization of their Fund. 19
49725th Page of 98TOC1stPreviousNextBottomJust 25th
COMPARISON OF INVESTMENT OBJECTIVES, POLICIES AND RESTRICTIONS I) Fixed Income III Fund vs. Investment Grade Fund: Investment Objectives and Policies The Fixed Income III Fund and the Investment Grade Fund have similar investment objectives and similar investment policies. The Fixed Income III Fund seeks to produce a high total return consistent with the preservation of capital by investing primarily in a diversified portfolio of fixed income securities. The Investment Grade Fund seeks above-average total return over a market cycle of three to five years. Both the Fixed Income III Fund and the Investment Grade Fund normally invest at least 80% of their assets in fixed income securities in accordance with their respective investment objectives set forth above. Both Funds seek to achieve their investment objectives by investing primarily in a diversified mix of dollar-denominated fixed income securities, particularly U.S. Government, corporate and mortgage securities. Both Funds ordinarily maintain an average weighted maturity in excess of five years. Both the Fixed Income III Fund and the Investment Grade Fund employ a value approach toward fixed income investing. The Fund's investment management teams seek to identify relative attractiveness among corporate, mortgage and U.S. Government securities, and also may consider the relative attractiveness of non-dollar denominated issues. Fixed income securities generally represent an issuer's obligation to repay money that it has borrowed together with interest on the amount borrowed. Both the Fixed Income III Fund and the Investment Grade Fund may invest over 50% of their assets in mortgage related securities. Mortgage related securities are securities that directly or indirectly represent a participation in, or are secured by and payable from, mortgage loans on real property. The Fixed Income III Fund may invest up to 15% of its assets in fixed income securities denominated in foreign currencies. The Investment Grade Fund can also invests in fixed income securities denominated in foreign currencies, but does not have a 15% limit on such investments. Both the Fixed Income III Fund and the Investment Grade Fund may take temporary "defensive" positions that are inconsistent with each fund's principal investment strategies in attempting to respond to adverse market conditions. Both the Fixed Income III Fund and the Investment Grade Fund may (i) purchase securities on a when-issued or delayed delivery basis, (ii) purchase or sell securities on a forward commitment basis, (iii) purchase municipal obligations, (iv) enter into repurchase agreements subject to certain procedures designed to minimize risks associated with such agreements, (v) invest in zero coupon securities, (vi) lend their portfolio securities and (vii) enter into options and futures transactions. The investment objective of the Fixed Income III Fund is not fundamental and can be changed by its Board. The investment objective of the Investment Grade Fund is fundamental and cannot be changed without the vote of the majority of the outstanding voting securities of a fund, as defined in the 1940 Act. The foregoing discussion is a summary of the principal differences and similarities between the investment policies of the Funds. For a more complete discussion of each Fund's policies, see the Prospectus and Statement of Additional Information for each Fund. 20
49726th Page of 98TOC1stPreviousNextBottomJust 26th
Investment Restrictions The investment restrictions adopted by the Fixed Income III Fund and the Investment Grade Fund as fundamental policies are substantially similar and are summarized in their respective Statements of Additional Information. A fundamental investment restriction cannot be changed without the vote of the majority of the outstanding voting securities of a fund, as defined in the 1940 Act. The material differences are as follows: (a) as a fundamental policy the Investment Grade Fund may not make loans except (i) by purchasing bonds, debentures or similar obligations (including repurchase agreements, subject to the limitations as described in its Prospectus) that are publicly distributed; (ii) by lending its portfolio securities to banks, brokers, dealers and other financial institutions so long as such loans are not inconsistent with the 1940 Act or the Rules and Regulations or interpretations of the SEC there under. This is a non-fundamental policy for the Fixed Income III Fund; (b) as a fundamental policy the Investment Grade Fund may not borrow money, except (i) from banks for extraordinary or emergency purposes, and (ii) in connection with reverse repurchase agreements, provided that (i) and (ii) in combination do not exceed 33 1/3% of the Fund's total assets (including amount borrowed) less liabilities (other than borrowings). The Fixed Income III Fund has a non-fundamental policy which limits Fund borrowings to 10% of the Fund's total assets. II) High Yield II Fund vs. High Yield Fund: Investment Objectives and Policies High Yield II Fund and High Yield Fund have similar investment objectives and investment policies. High Yield II Fund seeks to maximize total return by investing primarily in a diversified portfolio of high yield fixed income securities that offer a yield above that generally available on debt securities in the four highest rating categories of the recognized rating services. High Yield Fund seeks above average total return over a market cycle of three to five years. Both High Yield II Fund and High Yield Fund normally invest at least 80% of their assets in high yield securities. Both High Yield II Fund and High Yield Fund may invest in investment grade fixed income securities, including U.S. Government securities, corporate bonds and mortgage securities. The Funds may invest to a limited extent in foreign fixed income securities, including emerging market securities. High Yield Fund generally maintains an average weighted maturity in excess of five years although there is no minimum or maximum maturity for any individual security. The Funds may also invest in futures, swaps and other derivatives. The management teams of both the High Yield II Fund and the High Yield Fund use equity and fixed income valuation techniques, together with analyses of economic and industry trends, to determine the Funds' overall structure, sector allocation and desired maturity. The Funds' investment management teams emphasize securities of companies that have strong industry positions and favorable outlooks for cash flow and asset values. Both High Yield II Fund and High Yield Fund may take temporary "defensive" positions that are inconsistent with each Fund's principal investment strategies in attempting to respond to adverse market conditions in which any amount of their respective assets may be invested without limit in certain short- and medium-term fixed income securities. Both High Yield II Fund and High Yield Fund may (i) purchase securities on a when-issued or delayed delivery basis, (ii) purchase or sell securities on a forward commitment basis, (iii) purchase municipals, (iv) enter into repurchase agreements subject to certain procedures designed to minimize risks associated with such agreements, (v) invest in zero coupon securities, (vi) lend their portfolio securities and (vii) enter into options and futures transactions. 21
49727th Page of 98TOC1stPreviousNextBottomJust 27th
The investment objective of the High Yield II Fund is not fundamental and can be changed by its Board. The investment objective of the High Yield Fund is fundamental and cannot be changed without the vote of the majority of the outstanding voting securities of a fund, as defined in the 1940 Act. The foregoing discussion is a summary of the principal differences and similarities between the investment policies of the Funds. For a more complete discussion of each Fund's policies, see the Prospectus and Statement of Additional Information for each Fund. Investment Restrictions The investment restrictions adopted by High Yield II Fund and High Yield Fund as fundamental policies are substantially similar and are summarized in their respective Statements of Additional Information. A fundamental investment restriction cannot be changed without the vote of the majority of the outstanding voting securities of a portfolio, as defined in the 1940 Act. The material differences are as follows: (a) High Yield II Fund may not write or acquire options or interests in oil, gas or other mineral exploration or development programs; the High Yield Fund has no such investment restriction; (b) as a fundamental policy the High Yield Fund may not make loans except (i) by purchasing bonds, debentures or similar obligations (including repurchase agreements, subject to the limitations as described in its Prospectus) that are publicly distributed; (ii) by lending its portfolio securities to banks, brokers, dealers and other financial institutions so long as such loans are not inconsistent with the 1940 Act or the Rules and Regulations or interpretations of the SEC there under. This is a non-fundamental policy for the High Yield II Fund; (c) as a fundamental policy the High Yield II Fund may not borrow money, except (i) from banks for extraordinary or emergency purposes, and (ii) in connection with reverse repurchase agreements, provided that (i) and (ii) in combination do not exceed 33 1/3% of the Fund's total assets (including amount borrowed) less liabilities (other than borrowings). This is a non-fundamental policy of the High Yield Fund. III) Special Purpose Fund vs. Core Plus Fund: Investment Objectives and Policies The Special Purpose Fund and the Core Plus Fund have identical investment objectives and policies. Both Funds seek above-average total return over a market cycle of three to five years. Both the Special Purpose Fund and the Core Plus Fund normally invest at least 80% of their assets in fixed income securities in accordance with their investment objectives set forth above. Both Funds seek to achieve their investment objective by investing primarily in a diversified mix of dollar-denominated fixed income securities, particularly U.S. Government, corporate and mortgage securities. Both Funds ordinarily maintain an average weighted maturity in excess of five years. Both the Special Purpose Fund and the Core Plus Fund employ a value approach toward fixed income investing. The Fund's investment management teams seek to identify relative attractiveness among corporate, mortgage and U.S. Government securities, and also may consider the relative attractiveness of non-dollar denominated issues. Fixed income securities generally represent an issuer's obligation to repay money that it has borrowed together with interest on the amount borrowed. Both the Special Purpose Fund and the Core Plus Fund may invest over 50% of their assets in mortgage related securities. Mortgage related securities are securities that directly or indirectly represent a participation in, or are secured by and payable from, mortgage loans on real property. 22
49728th Page of 98TOC1stPreviousNextBottomJust 28th
Both the Special Purpose Fund and the Core Plus Fund invest in high yield securities which expose the Funds to a substantial degree of credit risk. High yield securities include fixed income securities rated below the four highest rating categories at the time of purchase and unrated securities considered my the management teams to be of equivalent quality. Prices of high yield securities will rise and fall primarily in response to actual or perceived changes in the issuer's financial health, although changes in market interest rates also will affect prices. High yield securities may experience reduced liquidity, and sudden and substantial decreases in price. Both the Special Purpose Fund and the Core Plus Fund may take temporary "defensive" positions that are inconsistent with each fund's principal investment strategies in attempting to respond to adverse market conditions. Both the Special Purpose Fund and the Core Plus Fund may (i) purchase securities on a when-issued or delayed delivery basis, (ii) purchase or sell securities on a forward commitment basis, (iii) purchase municipals, (iv) enter into repurchase agreements subject to certain procedures designed to minimize risks associated with such agreements, (v) invest in zero coupon securities, (vi) lend their portfolio securities and (vii) enter into options and futures transactions. The investment objectives of both the Special Purpose Fund and the Core Plus Fund are fundamental and cannot be changed without the vote of the majority of the outstanding voting securities of a fund, as defined in the 1940 Act. The foregoing discussion is a summary of the principal differences and similarities between the investment policies of the Funds. For a more complete discussion of each Fund's policies, see the Prospectus and Statement of Additional Informaton for each Fund. Investment Restrictions The investment restrictions adopted by the Special Purpose Fund and the Core Plus Fund as fundamental policies are identical and are summarized in the Trust's Statement of Additional Information. A fundamental investment restriction cannot be changed without the vote of the majority of the outstanding voting securities of a fund, as defined in the 1940 Act. There are no material differences between the fundamental policies of the Special Purpose Fund and the Core Plus Fund. 23
49729th Page of 98TOC1stPreviousNextBottomJust 29th
ADDITIONAL INFORMATION ABOUT THE TARGET FUNDS AND THE ACQUIRING FUNDS General For a discussion of the organization and operation of the Funds, see "Fund Management" and the applicable "Investment Summary" in their respective Prospectuses. Financial Information For certain financial information about the Funds, see "Financial Highlights" in their respective Prospectuses. Management For information about the respective Investment Adviser, and the Distributor of the Funds, see "Fund Management" in their respective Prospectuses. Description of Securities and Shareholder Inquiries For a description of the nature and most significant attributes of shares of the Funds, see "General Information" in their respective Statements of Additional Information. Dividends, Distributions and Taxes For a discussion of the Funds' policies with respect to dividends, distributions and taxes, see "Dividends and Distributions" and "Taxes" in their respective Prospectuses as well as the discussion herein under "Synopsis-- Purchases, Exchanges and Redemptions." Purchases, Repurchases and Redemptions For a discussion of how the Funds' shares may be purchased and redeemed, see "Shareholder Information" or "General Shareholder Information" in their respective Prospectuses. MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE For a discussion of the Acquiring Funds' performance, and the performance of the Special Purpose Fund, see management's letter to shareholders in the Trust's Annual Report for its fiscal year ended September 30, 2001 accompanying this Proxy Statement and Prospectus. For a discussion of the performance of the Fixed Income III Fund and the High Yield II Fund, see management's letter to Shareholders in the Company's Annual Report for its fiscal year ended December 31, 2001. 24
49730th Page of 98TOC1stPreviousNextBottomJust 30th
FINANCIAL STATEMENTS AND EXPERTS The financial statements of the Fixed Income III and the High Yield II Funds, for the fiscal year ended December 31, 2001, that are incorporated by reference in the Statement of Additional Information relating to the Registration Statement on Form N-14 of which this Proxy Statement and Prospectus forms a part, have been audited by Ernst & Young LLP, independent accountants. The financial statements have been incorporated by reference in reliance upon such reports given upon the authority of Ernst & Young LLP as experts in accounting and auditing. The financial statements of the Special Purpose Fixed Income Portfolio and the Acquiring Funds, for the year ended September 30, 2001, that are incorporated by reference in the Statement of Additional Information relating to the Registration Statement on Form N-14 of which this Proxy Statement and Prospectus forms a part, have been audited by Deloitte & Touche LLP, independent accountants. The financial statements have been incorporated by reference in reliance upon such reports given upon the authority of Deloitte & Touche LLP as experts in accounting and auditing. LEGAL MATTERS Certain legal matters concerning the issuance of shares of the Acquiring Funds will be passed upon by Mayer, Brown, Rowe & Maw, New York, New York. Such firm will rely on Pennsylvania counsel as to matters of Pennsylvania law. AVAILABLE INFORMATION A copy of the Prospectus for each Acquiring Fund (and for the Special Purpose Fund) dated January 31, 2002, and a copy of the Annual Report for each Acquiring Fund (and for the Special Purpose Fund) for the fiscal year ended September 30, 2001 are attached as Exhibits C and D, respectively, and are incorporated by reference herein. A Statement of Additional Information relating to the Reorganizations described in this Proxy Statement and Prospectus dated March 25, 2002 has been filed with the Securities and Exchange Commission (the "SEC") and is also incorporated herein by reference. Also incorporated by reference herein are the Prospectuses of the Fixed Income III Fund and the High Yield II Fund dated May 1, 2001, and the Annual Report dated December 31, 2001 of the Fixed Income III Fund and the High Yield II Fund. Copies of such documents, including the Statement of Additional Information, can be obtained without charge by calling (800) 548-7786. The Company and the Trust are required by federal law to file reports, proxy statements and other information with the SEC. The SEC maintains a website that contains information about the Company and the Trust. Any such reports, proxy material and other information can be inspected and copied at the public reference facilities of the SEC, 450 Fifth Street, N.W. Washington, D.C. 20549. Copies of such material can be obtained from the Public Reference Branch, Office of Consumer Affairs and Information Services of the SEC, 450 Fifth Street, N.W. Washington, D.C. 20549, or by electronic request at the following e-mail address: publicinfo@sec.gov, at prescribed rates. You may call the SEC at (202) 942-8090 for information on the operation of the Public Reference Room. 25
49731st Page of 98TOC1stPreviousNextBottomJust 31st
OTHER BUSINESS Management of the Target Funds knows of no business other than the matters specified above which will be presented at the Meeting. Since matters not known at the time of the solicitation may come before the Meeting, the proxy as solicited confers discretionary authority with respect to such matters as properly come before the Meeting, including any adjournment or adjournments thereof, and it is the intention of the persons named as attorneys-in-fact in the proxy to vote this proxy in accordance with their judgment on such matters. By Order of the Boards MARY E. MULLIN Secretary Morgan Stanley Institutional Fund, Inc. Morgan Stanley Institutional Fund Trust March 25, 2002 26
49732nd Page of 98TOC1stPreviousNextBottomJust 32nd
EXHIBIT A FORM OF AGREEMENT AND PLAN OF REORGANIZATION THIS AGREEMENT AND PLAN OF REORGANIZATION ("Agreement") is made as of this 23rd day of January, 2002, by and between MORGAN STANLEY INSTITUTIONAL FUND TRUST, a Pennsylvania business trust ("the Trust") on behalf of the following Portfolios of the Trust: (i) Investment Grade Fixed Income Portfolio (ii) High Yield Portfolio (iii) Core Plus Fixed Income Portfolio (each an "Acquiring Fund") and (iv) Special Purpose Fixed Income (a "Target Fund") and MORGAN STANLEY INSTITUTIONAL FUND, INC. (the "Company"), a Maryland corporation on behalf of the following Portfolios of the Company: (i) Fixed Income III Portfolio and (ii) High Yield II Portfolio (each a "Target Fund") Where appropriate, references to the Acquiring Fund mean to the Trust, on behalf of the Acquiring Fund and references to the Target Fund mean the Company, on behalf of the Fixed Income III Portfolio or High Yield II Portfolio or the Trust, on behalf of the Special Purpose Fixed Income Portfolio. This Agreement is intended to be and is adopted as a "plan of reorganization" within the meaning of Treasury Regulations Section 1.368-2(g), for a reorganization under Section 368(a)(1) of the Internal Revenue Code of 1986, as amended (the "Code"). The reorganization ("Reorganization") will consist of the transfer to the Acquiring Fund of substantially all of the assets of the of the Target Fund in exchange for the assumption by the Acquiring Fund of all stated liabilities of the Target Fund and the issuance by the Acquiring Fund of shares of beneficial interest, par value $0.01 per share (the "Acquiring Fund Shares"), to be distributed, after the Closing Date hereinafter referred to, to the shareholders of the Target Fund in liquidation of the Target Fund as provided herein, all upon the terms and conditions hereinafter set forth in this Agreement. In consideration of the premises and of the covenants and agreements hereinafter set forth, the parties hereto covenant and agree as follows: 1. The Reorganization and Liquidation of the Target Fund 1.1 Subject to the terms and conditions herein set forth and on the basis of the representations and warranties contained herein, the Target Fund agrees to assign, deliver and otherwise transfer the Target Fund Assets (as defined in paragraph 1.2) to the Acquiring Fund and the Acquiring Fund agrees in exchange therefor to assume all of the Target Fund stated liabilities on the Closing Date as set forth in paragraph 1.3(a) and to deliver to the Target Fund the number of Acquiring Fund Shares, including fractional shares, determined in the manner set forth in paragraph 2.3. Such transactions shall take place at the closing provided for in paragraph 3.1 ("Closing"). 1.2 (a) The "Target Fund Assets" shall consist of all property, including without limitation, all cash (other than the "Cash Reserve" (as defined in paragraph 1.3(b)), cash equivalents, securities and dividend and interest receivables owned by the Target Fund, and any deferred or prepaid expenses shown as an asset on the Target Funds' books on the Valuation Date. (b) On or prior to the Valuation Date, the Target Fund will provide the Acquiring Fund with a list of all of assets to be assigned, delivered and otherwise transferred to the Acquiring Fund and of the stated liabilities to be assumed by the Acquiring Fund pursuant to this Agreement. The Target A-1
49733rd Page of 98TOC1stPreviousNextBottomJust 33rd
Fund reserves the right to sell any of the securities on such list but will not, without the prior approval of the Acquiring Fund, acquire any additional securities other than securities of the type in which the Acquiring Fund is permitted to invest and in amounts agreed to in writing by the Acquiring Fund. The Acquiring Fund will, within a reasonable time prior to the Valuation Date, furnish the Target Fund with a statement of its investment objectives, policies and restrictions and a list of the securities, if any, on the list referred to in the first sentence of this paragraph that do not conform to the Acquiring Fund's investment objective, policies and restrictions. In the event that the Target Fund holds any investments that the Acquiring Fund is not permitted to hold, the Target Fund will dispose of such securities on or prior to the Valuation Date. In addition, if it is determined that the portfolios of the Target Fund and the Acquiring Fund, when aggregated, would contain investments exceeding certain percentage limitations imposed upon the Acquiring Fund with respect to such investments, the Target Fund if requested by the Acquiring Fund will, on or prior to the Valuation Date, dispose of and/or reinvest a sufficient amount of such investments as may be necessary to avoid violating such limitations as of the Closing Date (as defined in paragraph 3.1). 1.3 (a) The Target Fund will endeavor to discharge all of its liabilities and obligations on or prior to the Valuation Date. The Acquiring Fund will assume all stated liabilities, which include, without limitation, all expenses, costs, charges and reserves reflected on an unaudited Statement of Assets and Liabilities of the Target Fund prepared by the Treasurer of the [Company/Trust], on behalf of the Target Fund, as of the Valuation Date in accordance with generally accepted accounting principles consistently applied from the prior audited period. (b) On the Valuation Date, the Target Fund may establish a cash reserve, which shall not exceed 5% of the Target Funds' net assets as of the close of business on the Valuation Date ("Cash Reserve") to be retained by the Target Fund and used for the payment of its liabilities not discharged prior to the Valuation Date and for the expenses of dissolution. 1.4 In order for the Target Fund to comply with Section 852(a)(1) of the Code and to avoid having any investment company taxable income or net capital gain (as defined in Sections 852(b)(2) and 1222(11) of the Code, respectively) in the short taxable year ending with its dissolution, the Target Fund will on or before the Valuation Date (a) declare a dividend in an amount large enough so that it will have declared dividends of all of its investment company taxable income and net capital gain, if any, for such taxable year (determined without regard to any deduction for dividends paid) and (b) distribute such dividend. 1.5 On the Closing Date or as soon as practicable thereafter, the Target Fund will distribute the Acquiring Fund Shares received by the Target Fund pursuant to paragraph 1.1 pro rata to its shareholders of record determined as of the close of business on the Valuation Date ("Target Fund Shareholders"). Class A Shareholders of Fixed Income III Portfolio will receive Institutional Class Shares of Investment Grade Fixed Income Portfolio. Class B Shareholders will receive Adviser Class Shares. Class A Shareholders of High Yield II Portfolio will receive Institutional Class Shares of High Yield Portfolio. Class B Shareholders will receive Adviser Class Shares. Special Purpose Fixed Income Shareholders will receive Institutional Class Shares of Core Plus Fixed Income Portfolio. Such distribution will be accomplished by an instruction, signed by the Secretary of the Company or the Trust, as applicable, to transfer Acquiring Fund Shares then credited to the Target Funds' account on the books of the Acquiring Fund, to open accounts on the books of the Acquiring Fund in the names of the Target Fund Shareholders and representing the respective pro rata number of Acquiring Fund Shares due to such Target Fund Shareholders. All issued and outstanding shares of the Target Fund simultaneously will be canceled on the Target Funds' books; however, share certificates representing interests in the Target Fund will represent a number of Acquiring Fund Shares after the Closing Date as determined in accordance with paragraph 2.3. The Acquiring Fund will issue certificates representing the Acquiring Fund Shares in connection with such exchange only upon the written request of a Target Fund Shareholder. A-2
49734th Page of 98TOC1stPreviousNextBottomJust 34th
1.6 Ownership of Acquiring Fund Shares will be shown on the books of the Acquiring Fund's transfer agent. The Acquiring Fund Shares will be issued in the manner described in the Trust's current Prospectus and Statement of Additional Information. 1.7 Any transfer taxes payable upon issuance of the Acquiring Fund Shares in a name other than the registered holder of the Acquiring Fund Shares on the Target Funds' books as of the close of business on the Valuation Date shall, as a condition of such issuance and transfer, be paid by the person to whom the Acquiring Fund Shares are to be issued and transferred. 1.8 Any reporting responsibility of the Target Fund, is and shall remain the responsibility of the Target Fund up to and including the date on which the Target Fund is dissolved pursuant to paragraph 1.9. 1.9 Within one year after the Closing Date, the Target Fund shall pay or make provision for the payment of all its liabilities and taxes, and distribute to the shareholders of the Target Fund as of the close of business on the Valuation Date any remaining amount of the Cash Reserve (as reduced by the estimated cost of distributing it to shareholders). If and to the extent that any trust, escrow account, or other similar entity continues after the close of such one-year period in connection either with making provision for payment of liabilities or taxes or with distributions to shareholders of the Target Fund, such entity shall either (i) qualify as a liquidating trust under Section 7701 of the Code (and applicable Treasury Regulations thereunder) or other entity which does not constitute a continuation of the Target Fund for federal income tax purposes, or (ii) be subject to a waiver under Section 368(a)(2)(G)(ii) of the complete distribution requirement of Section 368(a)(2)(G)(i) of the Code. The Target Fund shall be dissolved as a portfolio of the Company or the Trust, as applicable, promptly following the making of all distributions pursuant to paragraph 1.5 (and, in any event, within one year after the Closing Date). 1.10 Copies of all books and records maintained on behalf of the Target Fund in connection with its obligations under the Investment Company Act of 1940, as amended (the "1940 Act"), the Code, state blue sky laws or otherwise in connection with this Agreement will promptly after the Closing be delivered to officers of the Acquiring Fund or their designee and the Acquiring Fund or its designee shall comply with applicable record retention requirements to which the Target Fund is subject under the 1940 Act. 2. Valuation 2.1 The value of the Target Fund Assets shall be the value of such assets computed as of 4:00 p.m. on the New York Stock Exchange on the third business day following the receipt of the requisite approval by shareholders of the Target Fund of this Agreement or at such time on such earlier or later date after such approval as may be mutually agreed upon in writing (such time and date being hereinafter called the "Valuation Date"), using the valuation procedures set forth in the Trust's then current Prospectus and Statement of Additional Information. 2.2 The net asset value of an Acquiring Fund Share shall be the net asset value per share computed on the Valuation Date, using the valuation procedures set forth in the Trust's then current Prospectus and Statement of Additional Information. 2.3 The number of Acquiring Fund Shares (including fractional shares, if any) to be issued hereunder shall be determined, with respect to each class, by dividing the aggregate net asset value of the applicable class of Target Fund shares (calculated in accordance with paragraph 2.1) by the net asset value per share of the applicable class of shares of the Acquiring Fund. For purposes of this paragraph, the aggregate net asset value of the shares of the Target Fund shall not include the amount of the Cash Reserve. 2.4 All computations of value shall be made by J.P. Morgan Investor Services Company in accordance with its regular practice in pricing the Acquiring Fund. The Acquiring Fund shall cause J.P. Morgan Investor Services Company to deliver a copy of its valuation report at the Closing. A-3
49735th Page of 98TOC1stPreviousNextBottomJust 35th
3. Closing and Closing Date 3.1 The Closing shall take place on the next business day following the Valuation Date (the "Closing Date"). The Closing shall be held as of 5:00 p.m. Eastern time, or at such other time as the parties may agree. The Closing shall be held in a location mutually agreeable to the parties hereto. All acts taking place at the Closing shall be deemed to take place simultaneously as of 5:00 p.m. Eastern time on the Closing Date unless otherwise provided. 3.2 Portfolio securities held by the Target Fund and represented by a certificate or other written instrument shall be presented by it or on its behalf to J.P. Morgan Chase & Co. (the "Custodian"), as custodian for the Acquiring Fund, for examination no later than five business days preceding the Valuation Date. Such portfolio securities (together with any cash or other assets) shall be delivered by the Target Fund to the Custodian for the account of the Acquiring Fund on or before the Closing Date in conformity with applicable custody provisions under the 1940 Act and duly endorsed in proper form for transfer in such condition as to constitute good delivery thereof in accordance with the custom of brokers. The portfolio securities shall be accompanied by all necessary Federal and state stock transfer stamps or a check for the appropriate purchase price of such stamps. Portfolio securities and instruments deposited with a securities depository (as defined in Rule 17f-4 under the 1940 Act) shall be delivered on or before the Closing Date by book-entry in accordance with customary practices of such depository and the Custodian. The cash delivered shall be in the form of a Federal Funds wire, payable to the order of "J.P. Morgan Chase & Co., Custodian for the Acquiring Fund." 3.3 In the event that on the Valuation Date, (a) the New York Stock Exchange shall be closed to trading or trading thereon shall be restricted or (b) trading or the reporting of trading on such Exchange or elsewhere shall be disrupted so that, in the judgment of both the Target Fund and Acquiring Fund, accurate appraisal of the value of the net assets of the Acquiring Fund or the Target Fund Assets is impracticable, the Valuation Date shall be postponed until the first business day after the day when trading shall have been fully resumed without restriction or disruption and reporting shall have been restored. 3.4 If requested, the Target Fund shall deliver to the Acquiring Fund or its designee (a) at the Closing, a list, certified by the Secretary of the Company or Trust, as applicable, of the names, addresses and taxpayer identification numbers of the Target Fund Shareholders and the number and percentage ownership of outstanding Target Fund shares owned by each such Target Fund Shareholder, all as of the Valuation Date, and (b) as soon as practicable after the Closing, all original documentation (including Internal Revenue Service forms, certificates, certifications and correspondence) relating to the Target Funds' taxpayer identification numbers and their liability for or exemption from back-up withholding. The Acquiring Fund shall issue and deliver to such Secretary a confirmation evidencing delivery of Acquiring Fund Shares to be credited on the Closing Date to the Target Fund or provide evidence satisfactory to the Target Fund that such Acquiring Fund Shares have been credited to the Target Funds' account on the books of the Acquiring Fund. At the Closing, each party shall deliver to the other such bills of sale, checks, assignments, share certificates, if any, receipts or other documents as such other party or its counsel may reasonably request. 4. Covenants of the Target Fund and Acquiring Fund 4.1 Except as otherwise expressly provided herein with respect to the Target Fund, the Acquiring Fund and the Target Fund each will operate its business in the ordinary course between the date hereof and the Closing Date, it being understood that such ordinary course of business will include customary dividends and other distributions. 4.2 The Trust, will prepare and file with the Securities and Exchange Commission ("Commission") a registration statement on Form N-14 under the Securities Act of 1933, as amended ("1933 Act"), relating to the Acquiring Shares ("Registration Statement"). The Target Fund will provide the Trust A-4
49736th Page of 98TOC1stPreviousNextBottomJust 36th
with the Proxy Materials as described in paragraph 4.3 below, for inclusion in the Registration Statement. The Target Fund will further provide the Trust with such other information and documents relating to the Target Fund as are reasonably necessary for the preparation of the Registration Statement. 4.3 The Target Fund will call a meeting of the Target Fund shareholders to consider and act upon this Agreement and to take all other action necessary to obtain approval of the transactions contemplated herein. The Target Fund will prepare the notice of meeting, form of proxy and proxy statement (collectively, "Proxy Materials") to be used in connection with such meeting; provided that the Trust will furnish the Target Fund with its currently effective prospectus for inclusion in the Proxy Materials and with such other information relating to the Acquiring Fund as is reasonably necessary for the preparation of the Proxy Materials. 4.4 The Target Fund will assist the Acquiring Fund in obtaining such information as the Acquiring Fund reasonably requests concerning the beneficial ownership of Target Fund Shares. 4.5 Subject to the provisions of this Agreement, the Target Fund and the Acquiring Fund will each take, or cause to be taken, all action, and do or cause to be done, all things reasonably necessary, proper or advisable to consummate and make effective the transactions contemplated by this Agreement. 4.6 The Target Fund shall furnish or cause to be furnished to the Acquiring Fund within 30 days after the Closing Date a statement of the Target Funds' assets and liabilities as of the Closing Date, which statement shall be certified by the Treasurer of the Company or Trust, as applicable, and shall be in accordance with generally accepted accounting principles consistently applied. As promptly as practicable, but in any case within 60 days after the Closing Date, the Target Fund shall furnish the Acquiring Fund, in such form as is reasonably satisfactory to the Acquiring Fund, a statement certified by the Treasurer of the Company or Trust, as applicable, of earnings and profits of the Target Fund for Federal income tax purposes that will be carried over to the Acquiring Fund pursuant to Section 381 of the Code. 4.7 As soon after the Closing Date as is reasonably practicable, the Target Fund (a) shall prepare and file all Federal and other tax returns and reports of the Target Fund required by law to be filed with respect to all periods ending on or before the Closing Date but not theretofore filed and (b) shall pay all Federal and other taxes shown as due thereon and/or all Federal and other taxes that were unpaid as of the Closing Date, including without limitation, all taxes for which the provision for payment was made as of the Closing Date (as represented in paragraph 5.2(k)). 4.8 The Trust agrees to use all reasonable efforts to obtain the approvals and authorizations required by the 1933 Act and the 1940 Act and to make such filings required by the state Blue Sky and securities laws as it may deem appropriate in order to continue its operations after the Closing Date. 5. Representations and Warranties 5.1 The Trust represents and warrants to the applicable Target Fund, on behalf of the applicable Acquiring Fund, as follows: (a) The Trust is a validly existing Pennsylvania business trust with full power to carry on its business as presently conducted; (b) The Trust is a duly registered, open-end, management investment company, and its registration with the Commission as an investment company under the 1940 Act and the registration of its shares under the 1933 Act are in full force and effect; (c) All of the issued and outstanding shares of the Acquiring Fund have been offered and sold in compliance in all material respects with applicable registration requirements of the 1933 Act and state securities laws. Shares of the Acquiring Fund are registered in all jurisdictions in which they A-5
49737th Page of 98TOC1stPreviousNextBottomJust 37th
are required to be registered under state securities laws and other laws, and said registrations, including any periodic reports or supplemental filings, are complete and current, all fees required to be paid have been paid, and the Acquiring Fund is not subject to any stop order and is fully qualified to sell its shares in each state in which its shares have been registered; (d) The current Prospectus and Statement of Additional Information of the Trust conforms in all material respects to the applicable requirements of the 1933 Act and the 1940 Act and the regulations thereunder and do not include any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; (e) The Trust is not in, and the execution, delivery and performance of this Agreement will not result in a material violation of any provision of the Trust's Declaration of Trust or By-Laws or of any agreement, indenture, instrument, contract, lease or other undertaking to which the Trust is a party or by which it is bound; (f) No litigation or administrative proceeding or investigation of or before any court or governmental body is presently pending or, to its knowledge, threatened against the Acquiring Fund or any of its properties or assets which, if adversely determined, would materially and adversely affect its financial condition or the conduct of its business; and the Trust knows of no facts that might form the basis for the institution of such proceedings and is not a party to or subject to the provisions of any order, decree or judgment of any court or governmental body which materially and adversely affects, or is reasonably likely to materially and adversely effect, its business or its ability to consummate the transactions herein contemplated; (g) The Statement of Assets and Liabilities, Statement of Operations, Statement of Changes in Net Assets and Financial Highlights for the year ended September 30, 2001, of the Trust audited by Deloitte & Touche LLP (copies of which have been furnished to the Target Fund) fairly present, in all material respects, the Acquiring Fund's financial condition as of such date in accordance with generally accepted accounting principles, and its results of such operations, changes in its net assets and financial highlights for such period, and as of such date there were no known liabilities of the Acquiring Fund (contingent or otherwise) not disclosed therein that would be required in accordance with generally accepted accounting principles to be disclosed therein; (h) All issued and outstanding Acquiring Fund Shares are, and at the Closing Date will be, duly and validly issued and outstanding, fully paid and nonassessable with no personal liability attaching to the ownership thereof, except as set forth in the Trust's current Prospectus incorporated by reference in the Registration Statement. The Acquiring Fund does not have outstanding any options, warrants or other rights to subscribe for or purchase any of its shares; (i) The execution, delivery and performance of this Agreement have been duly authorized by all necessary action on the part of the Trust, and this Agreement constitutes a valid and binding obligation of the Trust enforceable in accordance with its terms, subject as to enforcement, to bankruptcy, insolvency, reorganization, moratorium and other laws relating to or affecting creditors' rights and to general equity principles. No other consents, authorizations or approvals are necessary in connection with the Trust's performance of this Agreement; (j) The Acquiring Fund Shares to be issued and delivered to the Target Fund, for the account of the Target Fund Shareholders, pursuant to the terms of this Agreement will at the Closing Date have been duly authorized and, when so issued and delivered, will be duly and validly issued Acquiring Fund Shares, and will be fully paid and non-assessable with no personal liability attaching to the ownership thereof, except as set forth in the Trust's current Statement of Additional Information incorporated by reference in the Statement of Additional Information to this Registration Statement; A-6
49738th Page of 98TOC1stPreviousNextBottomJust 38th
(k) All material Federal and other tax returns and reports of the Trust required by law to be filed on or before the Closing Date have been filed and are correct, and all Federal and other taxes shown as due or required to be shown as due on said returns and reports have been paid or provision has been made for the payment thereof, and to the best of the Trust's knowledge, no such return is currently under audit and no assessment has been asserted with respect to any such return; (l) For each taxable year since its inception, the Trust has met the requirements of Subchapter M of the Code for qualification and treatment as a "regulated investment company" and neither the execution or delivery of nor the performance of its obligations under this Agreement will adversely affect, and no other events are reasonably likely to occur which will adversely affect the ability of the Trust to continue to meet the requirements of Subchapter M of the Code; (m) Since its inception there has been no change by the Trust in accounting methods, principles, or practices, including those required by generally accepted accounting principles; (n) The information furnished or to be furnished by the Trust for use in registration statements, proxy materials and other documents which may be necessary in connection with the transactions contemplated hereby shall be accurate and complete in all material respects and shall comply in all material respects with Federal securities and other laws and regulations applicable thereto; and (o) The Proxy Materials to be included in the Registration Statement (only insofar as they relate to the Acquiring Fund) will, on the effective date of the Registration Statement and on the Closing Date, not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which such statements were made, not materially misleading. 5.2 The Company, on behalf of the Fixed Income III Portfolio and High Yield II Portfolio and the Trust, on behalf of the Special Purpose Fixed Income Fund represents and warrants to the applicable Acquiring Fund, as follows: (a) The [Company] [Trust] is a validly existing [Maryland corporation] [Pennsylvania business trust] with full power to carry on its business as presently conducted; (b) The [Company] [Trust] is a duly registered, open-end, management investment company, and its registration with the Commission as an investment company under the 1940 Act and the registration of its shares under the 1933 Act are in full force and effect; (c) All of the issued and outstanding shares of beneficial interest of the Target Fund have been offered and sold in compliance in all material respects with applicable requirements of the 1933 Act and state securities laws. Shares of the Target Fund are registered in all jurisdictions in which they are required to be registered and said registrations, including any periodic reports or supplemental filings, are complete and current, all fees required to be paid have been paid, and the Target Fund is not subject to any stop order and is fully qualified to sell its shares in each state in which its shares have been registered; (d) The current Prospectus and Statement of Additional Information of the [Company] [Trust] conform in all material respects to the applicable requirements of the 1933 Act and the 1940 Act and the regulations thereunder and do not include any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; (e) The [Company] [Trust] is not, and the execution, delivery and performance of this Agreement will not result, in a material violation of any provision of the [Company's] [Trust's] [Articles of Incorporation] [Declaration of Trust] or By-Laws or of any agreement, indenture, instrument, contract, lease or other undertaking to which the [Company] [Trust] is a party or by which it is bound; A-7
49739th Page of 98TOC1stPreviousNextBottomJust 39th
(f) No litigation or administrative proceeding or investigation of or before any court or governmental body is presently pending or, to its knowledge, threatened against the Target Fund or any of its properties or assets which, if adversely determined, would materially and adversely affect its financial condition or the conduct of its business; and the [Company] [Trust] knows of no facts that might form the basis for the institution of such proceedings and is not a party to or subject to the provisions of any order, decree or judgment of any court or governmental body which materially and adversely affects, or is reasonably likely to materially and adversely effect, its business or its ability to consummate the transactions herein contemplated; (g) The Statement of Assets and Liabilities, Statement of Operations, Statement of Changes in Net Assets and Financial Highlights of the [Company for the year ended December 31, 2001 audited by Ernst & Young LLP] [Trust for the year ended September 30, 2001 audited by Deloitte & Touche LLP,] (copies of which have been or will be furnished to the Trust) fairly present, in all material respects, the Target Funds' financial condition as of such date, and its results of operations, changes in its net assets and financial highlights for such period in accordance with generally accepted accounting principles, and as of such date there were no known liabilities of the Target Fund (contingent or otherwise) not disclosed therein that would be required in accordance with generally accepted accounting principles to be disclosed therein; (h) The [Company] [Trust] has no material contracts or other commitments (other than this Agreement) that will be terminated with liability to it prior to the Closing Date; (i) All issued and outstanding shares of the Target Fund are, and at the Closing Date will be, duly and validly issued and outstanding, fully paid and nonassessable with no personal liability attaching to the ownership thereof, except in the case of Special Purpose Fixed Income as set forth in the Trust's current Statement of Additional Information incorporated by reference in the Statement of Additional Information to this Registration Statement. The Target Fund does not have outstanding any options, warrants or other rights to subscribe for or purchase any of its shares, nor is there outstanding any security convertible to any of its shares. All such shares will, at the time of Closing, be held by the persons and in the amounts set forth in the list of shareholders submitted to the Acquiring Fund pursuant to paragraph 3.4; (j) The execution, delivery and performance of this Agreement will have been duly authorized prior to the Closing Date by all necessary action on the part of the [Company] [Trust], and subject to the approval of the Target Funds' shareholders, this Agreement constitutes a valid and binding obligation of the [Company] [Trust], enforceable in accordance with its terms, subject as to enforcement to bankruptcy, insolvency, reorganization, moratorium and other laws relating to or affecting creditors' rights and to general equity principles. No other consents, authorizations or approvals are necessary in connection with the [Company's] [Trust's] performance of this Agreement; (k) All material Federal and other tax returns and reports of the [Company] [Trust] required by law to be filed on or before the Closing Date shall have been filed and are correct and all Federal and other taxes shown as due or required to be shown as due on said returns and reports have been paid or provision has been made for the payment thereof, and to the best of the [Company's] [Trust's] knowledge, no such return is currently under audit and no assessment has been asserted with respect to any such return; (l) For each taxable year since its inception, the [Company] [Trust], has met all the requirements of Subchapter M of the Code for qualification and treatment as a "regulated investment company" and neither the execution or delivery of nor the performance of its obligations under this Agreement will adversely affect, and no other events are reasonably likely to occur which will adversely affect, the ability of the [Company] [Trust] to continue to meet the requirements of Subchapter M of the Code; A-8
49740th Page of 98TOC1stPreviousNextBottomJust 40th
(m) At the Closing Date, the [Company] [Trust] will have good and valid title to the Target Fund Assets, subject to no liens (other than the obligation, if any, to pay the purchase price of portfolio securities purchased by the Target Fund which have not settled prior to the Closing Date), security interests or other encumbrances, and full right, power and authority to assign, deliver and otherwise transfer such assets hereunder, and upon delivery and payment for such assets, the Acquiring Fund will acquire good and marketable title thereto, subject to no restrictions on the full transfer thereof, including any restrictions as might arise under the 1933 Act; (n) On the effective date of the Registration Statement, at the time of the meeting of the Target Funds' shareholders and on the Closing Date, the Proxy Materials (exclusive of the currently effective Trust Prospectus contained therein) will (i) comply in all material respects with the provisions of the 1933 Act, the Securities Exchange Act of 1934, as amended ("1934 Act") and the 1940 Act and the regulations thereunder and (ii) not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading. Any other information furnished by the [Company] [Trust] for use in the Registration Statement or in any other manner that may be necessary in connection with the transactions contemplated hereby shall be accurate and complete and shall comply in all material respects with applicable Federal securities and other laws and regulations thereunder; (o) The Target Fund will, on or prior to the Valuation Date, declare one or more dividends or other distributions to shareholders that, together with all previous dividends and other distributions to shareholders, shall have the effect of distributing to the shareholders all of its investment company taxable income and net capital gain, if any, through the Valuation Date (computed without regard to any deduction for dividends paid); (p) The [Company] [Trust] has maintained or has caused to be maintained on its behalf all books and accounts as required of a registered investment company in compliance with the requirements of Section 31 of the 1940 Act and the Rules thereunder; and (q) The Target Fund is not acquiring the Acquiring Fund Shares to be issued hereunder for the purpose of making any distribution thereof other than in accordance with the terms of this Agreement. 6. CONDITIONS PRECEDENT TO OBLIGATIONS OF THE TARGET FUND The obligations of the Target Fund to consummate the transactions provided for herein shall be subject, at its election, to the performance by the Trust on behalf of the applicable Acquiring Fund of all the obligations to be performed by it hereunder on or before the Closing Date and, in addition thereto, the following conditions: 6.1 All representations and warranties of the Trust contained in this Agreement shall be true and correct in all material respects as of the date hereof and, except as they may be affected by the transactions contemplated by this Agreement, as of the Closing Date with the same force and effect as if made on and as of the Closing Date; 6.2 The Trust shall have delivered to the Target Fund, a certificate of its President and Treasurer, in a form reasonably satisfactory to the Target Fund and dated as of the Closing Date, to the effect that the representations and warranties of the Trust made in this Agreement are true and correct at and as of the Closing Date, except as they may be affected by the transactions contemplated by this Agreement, and as to such other matters as the Target Fund shall reasonably request; 6.3 The Target Fund, shall have received a favorable opinion from Mayer, Brown, Rowe & Maw, counsel to the Trust, dated as of the Closing Date, to the effect that: (a) The Trust is a validly existing Pennsylvania business trust, and has the power to own all of its properties and assets and to carry on its business as presently conducted (Pennsylvania counsel may be relied upon in delivering such opinion); A-9
49741st Page of 98TOC1stPreviousNextBottomJust 41st
(b) the Trust is a duly registered, open-end, management investment company, and its registration with the Commission as an investment company under the 1940 Act is in full force and effect; (c) this Agreement has been duly authorized, executed and delivered by the Trust and, assuming that the Registration Statement complies with the 1933 Act, the 1934 Act and the 1940 Act and regulations thereunder and assuming due authorization, execution and delivery of this Agreement by the [Company] [Trust], is a valid and binding obligation of the Trust enforceable against the Trust in accordance with its terms, subject as to enforcement, to bankruptcy, insolvency, reorganization, moratorium and other laws relating to or affecting creditors' rights and to general equity principles; (d) the Acquiring Fund Shares to be issued to the Target Fund Shareholders as provided by this Agreement are duly authorized and upon such delivery will be validly issued, fully paid and non-assessable (except as set forth in the Trust's Statement of Additional Information), and no shareholder of the Trust has any preemptive rights to subscription or purchase in respect thereof (Pennsylvania counsel may be relied upon in delivering such opinion); (e) the execution and delivery of this Agreement did not, and the consummation of the transactions contemplated hereby will not, violate the Trust's Declaration of Trust or By-Laws (Pennsylvania counsel may be relied upon in delivering such opinion); and (f) to the knowledge of such counsel, no consent, approval, authorization or order of any court or governmental authority of the United States or any state is required for the consummation by Trust of the transactions contemplated herein, except such as have been obtained under the 1933 Act, the 1934 Act and the 1940 Act and such as may be required under state securities laws; and 6.4 As of the Closing Date, there shall have been no material change in the applicable Acquiring Fund's investment objective, policies and restrictions nor any increase in the investment management fees from those described in the Trust's Prospectus dated January 31, 2001 and Statement of Additional Information dated January 31, 2001. 7. Conditions Precedent to Obligations of the Acquiring Fund The obligations of an Acquiring Fund to complete the transactions provided for herein shall be subject, at its election, to the performance by [Company] [Trust], on behalf of the applicable Target Fund, of all the obligations to be performed by it hereunder on or before the Closing Date and, in addition thereto, the following conditions: 7.1 All representations and warranties of the [Company] [Trust] contained in this Agreement shall be true and correct in all material respects as of the date hereof and, except as they may be affected by the transactions contemplated by this Agreement, as of the Closing Date with the same force and effect as if made on and as of the Closing Date; 7.2 The [Company] [Trust] shall have delivered to the Acquiring Fund at the Closing a certificate of its President and its Treasurer, in form and substance satisfactory to the Acquiring Fund and dated as of the Closing Date, to the effect that the representations and warranties of the [Company] [Trust] made in this Agreement are true and correct at and as of the Closing Date, except as they may be affected by the transactions contemplated by this Agreement, and as to such other matters as the Trust shall reasonably request; 7.3 The Target Fund shall have delivered to the Acquiring Fund, a statement of the Target Fund Assets and its liabilities, together with a list of the Target Funds' portfolio securities and other assets showing the respective adjusted bases and holding periods thereof for income tax purposes, as of the Closing Date, certified by the Treasurer of the [Company] [Trust]; 7.4 The Target Fund shall have delivered to the Trust within three business days after the Closing a letter from [Ernst & Young LLP] [Deloitte & Touche LLP] dated as of the Closing Date stating that (a) such A-10
49742nd Page of 98TOC1stPreviousNextBottomJust 42nd
firm has performed a limited review of the Federal and state income tax returns of [Company] [Trust] for each of the last three taxable years and, based on such limited review, nothing came to their attention that caused them to believe that such returns did not properly reflect, in all material respects, the Federal and state income tax liabilities of the Target Fund for the periods covered thereby, (b) for the period from _____________200_ to and including the Closing Date, such firm has performed a limited review (based on unaudited financial data) to ascertain the amount of applicable Federal, state and local taxes and has determined that same either have been paid or reserves have been established for payment of such taxes, and, based on such limited review, nothing came to their attention that caused them to believe that the taxes paid or reserves set aside for payment of such taxes were not adequate in all material respects for the satisfaction of all Federal, state and local tax liabilities for the period from ____________ 200_ to and including the Closing Date and (c) based on such limited reviews, nothing came to their attention that caused them to believe that the [Company] [Trust] would not qualify as a regulated investment company for Federal income tax purposes for any such year or period; 7.5 The Trust shall have received at the Closing a favorable opinion from Mayer, Brown, Rowe & Maw, counsel to the [Company] [Trust], dated as of the Closing Date to the effect that: (a) The [Company] [Trust] is a validly existing [Maryland corporation] [Pennsylvania business trust] and has the power to own all of its properties and assets and to carry on its business as presently conducted ([Maryland] [Pennsylvania] counsel may be relied upon in delivering such opinion); (b) the [Company] [Trust] is a duly registered, open-end, management investment company under the 1940 Act, and its registration with the Commission as an investment company under the 1940 Act is in full force and effect; (c) this Agreement has been duly authorized, executed and delivered by the [Company] [Trust], and, assuming that the Registration Statement complies with the 1933 Act, the 1934 Act and the 1940 Act and the regulations thereunder and assuming due authorization, execution and delivery of this Agreement by the Trust, is a valid and binding obligation of the [Company] [Trust] enforceable against the [Company] [Trust] in accordance with its terms, subject as to enforcement, to bankruptcy, insolvency, reorganization, moratorium and other laws relating to or affecting creditors' rights and to general equity principles; (d) the execution and delivery of this Agreement did not, and the consummation of the transactions contemplated hereby will not, violate the [Company's] [Trust's] [Articles of Incorporation] [Declaration of Trust] or By-Laws ([Maryland] [Pennsylvania] counsel may be relied upon in delivering such opinion); and (e) to the knowledge of such counsel, no consent, approval, authorization or order of any court or governmental authority of the United States or any state is required for the consummation by the [Company] [Trust] of the transactions contemplated herein, except such as have been obtained under the 1933 Act, the 1934 Act and the 1940 Act and such as may be required under state securities laws; and 7.6 On the Closing Date, the Target Fund Assets shall include no assets that the Acquiring Fund, by reason of limitations of the fund's Declaration of Trust or otherwise, may not properly acquire. 8. Further Conditions Precedent to Obligations of the Target Fund and the Acquiring Fund The obligations of the [Company] [Trust], on behalf of a Target Fund, and the Trust on behalf of the applicable Acquiring Fund, hereunder are each subject to the further conditions that on or before the Closing Date: 8.1 This Agreement and the transactions contemplated herein shall have been approved by the requisite vote of the holders of the outstanding shares of the Target Fund in accordance with the provisions of A-11
49743rd Page of 98TOC1stPreviousNextBottomJust 43rd
the [Company's] [Trust's] [Articles of Incorporation] [Declaration of Trust], and certified copies of the resolutions evidencing such approval shall have been delivered to the Trust; 8.2 On the Closing Date, no action, suit or other proceeding shall be pending before any court or governmental agency in which it is sought to restrain or prohibit, or obtain damages or other relief in connection with, this Agreement or the transactions contemplated herein; 8.3 All consents of other parties and all other consents, orders and permits of Federal, state and local regulatory authorities (including those of the Commission and of state Blue Sky and securities authorities, including "no-action" positions of and exemptive orders from such Federal and state authorities) deemed necessary by Target Fund or Acquiring Fund to permit consummation, in all material respects, of the transactions contemplated herein shall have been obtained, except where failure to obtain any such consent, order or permit would not involve risk of a material adverse effect on the assets or properties of the Trust or the Target Fund or Acquiring Fund; 8.4 The Registration Statement shall have become effective under the 1933 Act, no stop orders suspending the effectiveness thereof shall have been issued and, to the best knowledge of the parties hereto, no investigation or proceeding for that purpose shall have been instituted or be pending, threatened or contemplated under the 1933 Act; 8.5 The Target Fund shall have declared and paid a dividend or dividends and/or other distribution or distributions that, together with all previous such dividends or distributions, shall have the effect of distributing to the Target Fund Shareholders all of the Target Funds' investment company taxable income (computed without regard to any deduction for dividends paid) and all of its net capital gain (after reduction for any capital loss carry-forward and computed without regard to any deduction for dividends paid) for all taxable years ending on or before the Closing Date; and 8.6 The parties shall have received the opinion of the law firm of Mayer, Brown, Rowe & Maw (based on such representations as such law firm shall reasonably request), addressed to the Trust on behalf of the Acquiring Fund and the [Company/Trust], on behalf of the Target Fund, which opinion may be relied upon by the shareholders of the Target Fund, substantially to the effect that, for Federal income tax purposes: (a) The transfer of the Target Funds' assets in exchange for the Acquiring Fund Shares and the assumption by the Acquiring Fund of certain stated liabilities of the Target Fund followed by the distribution by the Target Fund of Acquiring Fund Shares to the Target Fund Shareholders in exchange for their Target Fund Shares pursuant to and in accordance with the terms of the Reorganization Agreement will constitute a "reorganization" within the meaning of Section 368(a)(1)(C) of the Code, and the Trust and the [Company] [Trust] will each be a "party to a reorganization" within the meaning of Section 368(b) of the Code; (b) No gain or loss will be recognized by the Acquiring Fund upon the receipt of the assets of the Target Fund solely in exchange for the Acquiring Fund Shares and the assumption by the Acquiring Fund of the stated liabilities of the Target Fund; (c) No gain or loss will be recognized by the Target Fund upon the transfer of the assets of the Target Fund to the Acquiring Fund in exchange for the Acquiring Fund Shares and the assumption by the Acquiring Fund of the stated liabilities or upon the distribution of the Acquiring Fund Shares to the Target Fund Shareholders in exchange for their Target Fund Shares; (d) No gain or loss will be recognized by the Target Fund Shareholders upon the exchange of the Target Fund Shares for Acquiring Fund Shares; (e) The aggregate tax basis for Acquiring Fund Shares received by each Target Fund Shareholder pursuant to the reorganization will be the same as the aggregate tax basis of the Target Fund Shares held by each such Target Fund Shareholder immediately prior to the Reorganization; A-12
49744th Page of 98TOC1stPreviousNextBottomJust 44th
(f) The holding period of Acquiring Fund Shares to be received by each Target Fund Shareholder will include the period during which the Target Fund Shares surrendered in exchange therefor were held (provided such Target Fund Shares were held as capital assets on the date of the Reorganization); (g) The tax basis of the assets of Target Fund acquired by the Acquiring Fund will be the same as the tax basis of such assets to the Target Fund immediately prior to the Reorganization; and (h) The holding period of the assets of the Target Fund in the hands of the Acquiring Fund will include the period during which those assets were held by the Acquiring Fund. (i) Notwithstanding anything herein to the contrary, neither the Acquiring Fund nor the Target Fund may waive the conditions set forth in this paragraph 8.6. 9. Fees and Expenses 9.1 (a) The Target Funds shall equally bear all of the expenses of proxy solicitation including the cost of preparing and mailing the Proxy Statement and Prospectus. The Target Funds and the Acquiring Funds will each bear all of their respective expenses incurred in connection with the entering into, and carrying out of, the provisions of this Agreement, including legal, accounting, Commission registration fees and Blue Sky expenses, legal and accounting fees, filing and portfolio transfer taxes (if any) incurred in connection with the consummation of the transactions contemplated herein. (b) In the event the transactions contemplated herein are not consummated by reason of the Target Fund being either unwilling or unable to go forward (other than by reason of the nonfulfillment or failure of any condition to the Target Funds' obligations specified in this Agreement), the Target Funds' only obligation hereunder shall be to reimburse the Acquiring Fund for all reasonable out-of-pocket fees and expenses incurred by the Acquiring Fund in connection with those transactions. (c) In the event the transactions contemplated herein are not consummated by reason of the Acquiring Fund being either unwilling or unable to go forward (other than by reason of the nonfulfillment or failure of any condition to the Acquiring Fund's obligations specified in this Agreement), the Acquiring Fund's only obligation hereunder shall be to reimburse the Target Fund for all reasonable out-of-pocket fees and expenses incurred by the Target Fund in connection with those transactions. 10. Entire Agreement; Survival of Warranties 10.1 This Agreement constitutes the entire agreement between the parties. 10.2 The representations, warranties and covenants contained in this Agreement or in any document delivered pursuant hereto or in connection herewith shall survive the consummation of the transactions contemplated herein, except that the representations, warranties and covenants of the [Company] [Trust] hereunder shall not survive the dissolution and complete liquidation of the Target Fund in accordance with Section 1.9. 11. Termination 11.1 This Agreement may be terminated and the transactions contemplated hereby may be abandoned at any time prior to the Closing: (a) by the mutual written consent of the Target Fund, and the Acquiring Fund; (b) by either, the Target Fund, or the Acquiring Fund, by notice to the other, without liability to the terminating party on account of such termination (providing the terminating party is not A-13
49745th Page of 98TOC1stPreviousNextBottomJust 45th
otherwise in material default or breach of this Agreement) if the Closing shall not have occurred on or before August 15, 2002; or (c) by either the Target Fund, or the Acquiring Fund, in writing without liability to the terminating party on account of such termination (provided the terminating party is not otherwise in material default or breach of this Agreement), if (i) the other party shall fail to perform in any material respect its agreements contained herein required to be performed on or prior to the Closing Date, (ii) the other party materially breaches any of its representations, warranties or covenants contained herein, (iii) the Target Fund shareholders fail to approve this Agreement at any meeting called for such purpose at which a quorum was present or (iv) any other condition herein expressed to be precedent to the obligations of the terminating party has not been met and it reasonably appears that it will not or cannot be met. 11.2 (a) Termination of this Agreement pursuant to paragraphs 11.1(a) or (b) shall terminate all obligations of the parties hereunder and there shall be no liability for damages on the part of the [Company] [Trust] or the Trust, or the trustees or officers of the [Company] [Trust] or the Trust, to any other party or its trustees or officers. (b) Termination of this Agreement pursuant to paragraph 11.1(c) shall terminate all obligations of the parties hereunder and there shall be no liability for damages on the part of the [Company] [Trust] or the Trust, or the trustees or officers of the [Company] [Trust] or the Trust, except that any party in breach of this Agreement shall, upon demand, reimburse the non-breaching party for all reasonable out-of-pocket fees and expenses incurred in connection with the transactions contemplated by this Agreement, including legal, accounting and filing fees. 12. Amendments This Agreement may be amended, modified or supplemented in such manner as may be mutually agreed upon in writing by the parties. 13. Miscellaneous 13.1 The article and paragraph headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 13.2 This Agreement may be executed in any number of counterparts, each of which shall be deemed an original. 13.3 This Agreement shall be governed by and construed in accordance with the laws of Pennsylvania. 13.4 This Agreement shall bind and inure to the benefit of the parties hereto and their respective successors and assigns, but no assignment or transfer hereof or of any rights or obligations hereunder shall be made by any party without the written consent of the other party. Nothing herein expressed or implied is intended or shall be construed to confer upon or give any person, firm or corporation, other than the parties hereto and their respective successors and assigns, any rights or remedies under or by reason of this Agreement. 13.5 The obligations and liabilities of the Trust hereunder are solely those of the Trust. It is expressly agreed that no shareholder, nominee, trustee, officer, agent, or employee of the Trust shall be personally liable hereunder. The execution and delivery of this Agreement have been authorized by the trustees of the Trust and signed by authorized officers of the Trust acting as such, and neither such authorization by such trustees nor such execution and delivery by such officers shall be deemed to have been made by any of them individually or to impose any liability on any of them personally. A-14
49746th Page of 98TOC1stPreviousNextBottomJust 46th
IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed by a duly authorized officer. MORGAN STANLEY INSTITUTIONAL FUND TRUST on behalf of THE ACQUIRING FUNDS and SPECIAL PURPOSE FIXED INCOME PORTFOLIO By: _______________________________ Name: Mary E. Mullin Title: Secretary MORGAN STANLEY INSTITUTIONAL FUND, INC. on behalf of FIXED INCOME III PORTFOLIO and HIGH YIELD II PORTFOLIO By: _______________________________ Name: Mary E. Mullin Title: Secretary A-15
49747th Page of 98TOC1stPreviousNextBottomJust 47th
EXHIBIT B BENEFICIAL OWNERS To the knowledge of MSIM on behalf of the Fixed Income III Fund and High Yield II Fund, and MSI on behalf of the Acquiring Funds and the Special Purpose Fund, the following were beneficial owners of more than 5% of the outstanding shares of the relevant classes of each Target Fund and each Acquiring Fund. Those persons who own beneficially 25% or more of the voting securities of the Funds are deemed to be control persons ("Control Persons"). Control Persons may have the ability to effect the outcome of this solicitation. [Enlarge/Download Table] Percent held as of the Number of Record Date Title of Portfolio/Class Name and Address Shares (2/19/02) ------------------------------ ------------------------- ------------- ------------ Fixed Income III Fund, Class A MAC & Co. A/C MSWF1000052 7,953,097.226 36.19% Mutual Funds Operations PO Box 3198 Pittsburgh, PA 15230-3198 MAC & Co. A/C MSWF1000052 2,324,119.482 10.57% Mutual Funds Operations PO Box 3198 Pittsburgh, PA 15230-3198 Fleet National Bank 2,012,404.181 9.16% FBO St Raymonds Parish Attn 0001396250 PO Box 92800 Rochester, NY 14692-8900 Fixed Income III Fund, Class B Morgan Stanley Co 37,844.770 16.88% FBO Burton D. Cohen 3912 Zenith Ave South Minneapolis, MN 55410 Morgan Stanley Co 37,287.208 16.63% FBO Carolyn S. Young 514 Chestertown Street Gaithersburg, MD 20878 Morgan Stanley Co 20,478.076 9.14% FBO C. Marks Hinton Jr. 49 Briar Hollow Lane 1705 Houston, TX 77027 Morgan Stanley Co 18,238.635 8.14% FBO Leonard M. Landsbaum 8024 Clayton Lane Court Saint Louis, MO 63105 Morgan Stanley Co 14,678.991 6.55% FBO Annmarie DeMartino 420 Avenue L Brooklyn, NY 11230 16
49748th Page of 98TOC1stPreviousNextBottomJust 48th
[Enlarge/Download Table] Percent held as of the Number of Record Date Title of Portfolio/Class Name and Address Shares (2/19/02) ---------------------------- ---------------------------------------- ------------- ------------ Morgan Stanley Co 12,227.580 5.45% FBO Joan H. Gilblichman 3860 Mission Hills Road S Northbrook, IL 60062 High Yield II Fund, Class A MAC & Co. A/C MSWF1000132 5,260,912.789 34.21% Mutual Funds Operation PO Box 3198 Pittsburgh, PA 15230-3198 MAC & Co. A/C MSWF4000132 2,446,498.100 15.91% Mutual Funds Operations PO Box 3198 Pittsburgh, PA 15230-3198 Morgan Stanley Co 1,231,713.432 8.01% FBO Janx Partners LP, II 1 Gateway Center Suite 900 Newark, NJ 07102 Morgan Stanley Co FBO 1,053,037.798 55.48% Universal Computer Consulting Holding Inc. 300 Delaware Ave Ste 1704 Wilmington, DE 19801 High Yield II Fund, Class B Morgan Stanley Co 126,747.047 6.68% FBO Joseph Mansour PO Box 160834 Austin, TX 78716 Core Plus Fixed Income Fund, Fidelity Investments Institutional 5,938,825.641 39.06% Adviser Class Operations Co FIIOC as Agent For Certain EE Benefits Plans 100 Magellan Way KW1C Covington, KY 41015 Transco & Co 2,253,024.446 14.82% Attn Wealth Management 10 th Floor PO Box 48698 Wichita, KS 67201 Transco & Co 1,943,206.843 12.78% Attn Wealth Management 10 th Floor PO Box 48698 Wichita, KS 67201 17
49749th Page of 98TOC1stPreviousNextBottomJust 49th
[Enlarge/Download Table] Percent held as of the Number of Record Date Title of Portfolio/Class Name and Address Shares (2/19/02) ---------------------------- -------------------------------------- -------------- ------------ Wendel & Co A/C 295773 1,273,695.423 8.38% c/o The Bank of New York PO Box 1066 Wall Street Station New York, NY 10286 Fidelity Management Trust Company 1,171,190.295 7.70% Attn Ben Branham Mail Zone H10C 82 Devonshire St Boston, MA 02109 Pan-American Life Insurance Company 1,004,619.137 6.61% Separate Account VII 14th Floor 601 Poydras St New Orleans, LA 70130 Resources Trust Co 882,757.399 5.81% For the Exclusive Benefit of Various IMS Customers PO Box 3865 Englewood, CO 80155-3865 Core Plus Income Fund, MAC & Co A/C MSWF 1000302 42,626,450.639 12.78% Institutional Class PO Box 3198 Pittsburgh, PA 15230-3198 Core Plus Fixed Income Fund, MSDW Stable Value Plan-SEI Trustee 4,106,440.950 60.18% Investment Class Attn Jeff Ryan 530 E Swedesford Road Wayne, PA 19087-1693 Morgan Stanley Co 594,737.225 8.72% FBO Ecological Trust Fund of Panama GP The Nature Conservancy 4245 North Fairfax Drive 100 Arlington, VA 22203 Zoological Society of Philadelphia 372,514.246 5.46% Endowment Attn Joe Steuer 3400 West Girard Ave Philadelphia, PA 19104-1196 Testa And Co 371,794.678 5.45% c/o Chase Manhattan Bank Attn Mutual Fund Dept PO Box 31412 Rochester, NY 14603-1412 18
49750th Page of 98TOC1stPreviousNextBottomJust 50th
[Enlarge/Download Table] Percent held as of the Number of Record Date Title of Portfolio/Class Name and Address Shares (2/19/02) ------------------------------ ---------------------------------------- -------------- ------------ High Yield Fund, Adviser Class National Financial Services Corporation 16,792,866.634 87.23% For Exclusive Benefit of our Customers One World Financial Center New York, NY 10281 Fidelity Investments Institutional 1,378,503.409 7.16% Operations Co FIIOC as Agent for Certain EE Benefit Plans 100 Magellan Way KW1C Covington, KY 41015 High Yield Fund, Institutional Charles Schwab & Co Inc 13,659,666.580 14.80% Class Special Custody Account for the Exclusive Benefit of Customers Attn Mutual Funds 101 Montgomery St San Francisco, CA 94104 Minnesota Life Insurance Company 11,430,067.903 12.39% Attn Administration Department c/o Advantus Capital Management Inc Station 16-4202 400 Robert St St Paul, MN 55101 PFPC 6,305,893.646 6.83% FBO LPL Supermarket Program Attn KOP-LPL 211 South Gulph Road King of Prussia, PA 19406 Michelin North America Inc 5,408,863.654 5.86% Attn Kris Kapoor One Parkway South PO Box 19001 Greenville, SC 29602 High Yield Fund, Investment Boston & Co 10113608004 474,898.236 27.65% Class PO Box 534005 Pittsburgh, PA 15253-40005 First Union National Bank 428,749.060 24.96% FBO No American Van Lines Retirement Plan 1524 West WT Harris Blvd-NC1151 Charlotte, NC 28288-1151 The Philadelphia Foundation 334,712.305 19.49% Attn Julia R Dutton 1234 Market St Suite 1900 Philadelphia, PA 19102 19
49751st Page of 98TOC1stPreviousNextBottomJust 51st
[Enlarge/Download Table] Percent held as of the Number of Record Date Title of Portfolio/Class Name and Address Shares (2/19/02) ----------------------------- --------------------------------------- ------------- ------------ EAMCO-910004035 127,055.880 7.40% c/o Riggs Bank NA Mutual Fund Desk RS 300 PO Box 96211 Washington, DC 20090-6211 Northern Trust Company as Custodian 120,743.345 7.03% For Noblehouse International Ltd PO Box 92956 Chicago, IL 60675 EAMCO 86,536.201 5.04% FBO Loudoun Health Care Attn Mutual Fund Desk RS300 PO Box 96211 Washington, DC 20090-6211 Investment Grade Fixed Income HUBCO 4,205,038.092 16.20% Fund Regions Financial Corporation PO Box 10247 Birmingham, AL 35202 First Union National Bank 3,051,549.263 11.75% FBO Diocese of Camden Trust Inc CMG 3C4 NC 1151 1525 W WT Harris Blvd Charlotte, NC 28288 Mercantile Safe Deposit & Trust Company 3,047,342.329 11.74% Trustee for JHU Pension 2750 Attn Mutual Funds 766 Old Hammonds Ferry Rd Linthicum, MD 21090 JHU Retiree Medical Benefits Trust 1,706,896.596 6.57% Johns Hopkins University Attn Harriet Olsen 3400 Charles St Baltimore, MD 21218 Amsouth Bank as Trustee Infirmary 1,540,594.501 5.93% Health Systems Inc Attn Mutual Fund Team PO Box 11426 Birmingham, AL 35202 University of Illinois 1,302,667.918 5.02% Director Cash Management & Investments 506 South Wright Street MC-363 Urbana, IL 61801-3620 20
49752nd Page of 98TOC1stPreviousNextBottomJust 52nd
[Enlarge/Download Table] Percent held as of the Number of Record Date Title of Portfolio/Class Name and Address Shares (2/19/02) ------------------------ --------------------------------- ------------- ------------ Special Purpose Fund Robertson Research Fund 3,252,319.084 13.94% Cold Spring Harbor Laboratory Attn Alison McDermott PO Box 100 Cold Spring Harbor, NY 11724-0100 The Cold Spring Harbor Fund 2,617,969.026 11.22% Attn Alison McDermott PO Box 100 Burgtown Road Cold Springs Harbor, NY 11724 Fleet National Bank 2,289,764.149 9.81% FBO Hartford Hospital PO Box 92800 Rochester, NY 14692-8900 OWNERSHIP OF THE OFFICERS AND DIRECTORS/TRUSTEES As of the Record Date, to the knowledge of MSIM, on behalf of the Fixed Income III Fund and High Yield II Fund, and MSI, on behalf of the Acquiring Funds and the Special Purpose Fund, the officers and Directors/Trustees of the High Yield II Fund and the Acquiring Funds, as a group, owned beneficially less than 1% of the outstanding shares of those Funds, and the officers and Directors/Trustees owned beneficially 1.52% of the outstanding Class A shares of the Fixed Income III Fund. 21
49753rd Page of 98TOC1stPreviousNextBottomJust 53rd
MORGAN STANLEY INSTITUTIONAL FUND TRUST Investment Grade Fixed Income Portfolio High Yield Portfolio Core Plus Fixed Income Portfolio PART B STATEMENT OF ADDITIONAL INFORMATION This Statement of Additional Information relates to the shares of Investment Grade Fixed Income Portfolio, High Yield Portfolio, and Core Plus Fixed Income Portfolio (the "Portfolios"), each a portfolio of Morgan Stanley Institutional Fund Trust (the "Trust"), to be issued pursuant to an Agreement and Plan of Reorganization for each Portfolio, dated January 23, 2002 between the Trust, on behalf of each Portfolio, and Morgan Stanley Institutional Fund, Inc. (the "Company"), on behalf of Fixed Income III Portfolio and High Yield II Portfolio (each a "Target Fund"), and the Trust, on behalf of Special Purpose Fixed Income Portfolio (a "Target Fund"), in connection with the acquisition by Investment Grade Fixed Income Portfolio, High Yield Portfolio, and Core Plus Fixed Income Portfolio of substantially all of the assets, subject to stated liabilities, of the Fixed Income III Portfolio, High Yield II Portfolio, and Special Purpose Fixed Income Portfolio, respectively. This Statement of Additional Information does not constitute a prospectus. This Statement of Additional Information does not include all information that a shareholder should consider before voting on the proposal contained in the Proxy Statement and Prospectus that relates to their Portfolio, and, therefore, should be read in conjunction with the related Proxy Statement and Prospectus, dated March 25 2002. A copy of the Proxy Statement and Prospectus may be obtained without charge by calling (800) 548-7786. Please retain this document forfuture reference. The date of this Statement of Additional Information is dated March 25, 2002. TABLE OF CONTENTS Page ---- ------------------------------------------------------------------------- INTRODUCTION B-2 ------------------------------------------------------------------------- ADDITIONAL INFORMATION ABOUT THE PORTFOLIOS B-2 ------------------------------------------------------------------------- FINANCIAL STATEMENTS B-3 ------------------------------------------------------------------------- B-1
49754th Page of 98TOC1stPreviousNextBottomJust 54th
INTRODUCTION This Statement of Additional Information is intended to supplement the information provided in the Proxy Statement and Prospectus dated March 25, 2002 (the "Proxy Statement and Prospectus"). The Proxy Statement and Prospectus has been sent to the Target Fund shareholders in connection with the solicitation of proxies by the Board of Directors/Trustees of the Target Funds to be voted at the Special Joint Meeting of Shareholders of the Target Funds to be held on May 15, 2002. This Statement of Additional Information incorporates by reference the Statement of Additional Information of the Portfolios and Special Purpose Fixed Income Portfolio dated January 31, 2002, and the Statement of Additional Information of Fixed Income III Portfolio and High Yield II Portfolio dated May 1, 2001, as supplemented on November 27, 2001. ADDITIONAL INFORMATION ABOUT THE PORTFOLIOS Investment Objectives and Policies For additional information about the Portfolios' investment objectives and policies, see "The Portfolios' Investments and Strategies" in the Portfolios' Statement of Additional Information. Management For additional information about the Board of Trustees, officers and management personnel of the Portfolios, see "Management of the Fund" in the Portfolios' Statement of Additional Information. Investment Advisory and Other Services For additional information about the Portfolios' investment adviser, see "Investment Adviser" in the Portfolios' Statement of Additional Information. For additional information about the Portfolios' independent auditors, see "Other Service Providers" in the Portfolios' Statement of Additional Information. For additional information about other services provided to the Portfolios, see "Fund Administration", and "Other Service Providers" in the Portfolios' Statement of Additional Information. Portfolio Transactions and Brokerage For additional information about brokerage allocation practices, see "Transactions with Broker/Dealers" and "Brokerage Transactions" in the Portfolios' Statement of Additional Information. Description of Fund Shares For additional information about the voting rights and other characteristics of the shares of the Portfolios, see "General Information" in the Portfolios' Statement of Additional Information. B-2
49755th Page of 98TOC1stPreviousNextBottomJust 55th
Purchase, Redemption and Pricing of Shares For additional information about the purchase and redemption of the Portfolios' shares and the determination of net asset value, see "Purchase of Shares", "Redemption of Shares", and "Valuation of Shares" in the Portfolios' Statement of Additional Information. Dividends, Distributions and Tax Status For additional information about the Portfolios policies regarding dividends and distributions and tax matters affecting the Portfolios and their shareholders, see "General Information" and "Tax Considerations" in the Portfolios' Statement of Additional Information. Distribution of Shares For additional information about the Portfolios' distributor and the distribution agreement between the Portfolios and the distributor, see "Distribution of Shares" and "Principal Underwriter" in the Portfolios' Statement of Additional Information. Performance Data For additional information about the Portfolios' performance, see "Performance Information" in the Portfolios' Statement of Additional Information. FINANCIAL STATEMENTS The Portfolios, and the Special Purpose Fixed Income Portfolios', most recent audited financial statements are set forth in their Annual Report for the fiscal year ended September 30, 2001. A copy of the Annual Report accompanies, and is incorporated by reference in, the Proxy Statement and Prospectus. The Fixed Income III Portfolio's and the High Yield II Portfolio's most recent audited financial statements are set forth in their Annual Report for the fiscal year ended December 31, 2001, which is incorporated by reference in the Proxy Statement and Prospectus. The following unaudited pro-forma financial information combines the Schedules of Portfolio Investments, the Statements of Assets and Liabilities, and the Statements of Operations, as of December 31, 2001, of the Fixed Income III Portfolio and High Yield II Portfolio to reflect the reorganization of the Fixed Income III Portfolio and High Yield II Portfolio into the Investment Grade Fixed Income Portfolio and High Yield Portfolio, respectively. The pro-forma financial information shows the expected effect of the reorganization transactions on the Fixed Income III Portfolio and High Yield II Portfolio. Pursuant to Rule 11-01 of Regulation S-X, the pro-forma financial information for the Special Purpose Fixed Income Portfolio need not be shown because the net asset value of the Special Purpose Fixed Income Portfolio does not exceed ten percent of the net asset value of the Core Plus Fixed Income Portfolio. B-3
49756th Page of 98TOC1stPreviousNextBottomJust 56th
Morgan Stanley Institutional Fund Trust/Morgan Stanley Institutional Fund, Inc. Pro-Forma Combined Portfolio of Investments Acquiring Portfolio: MSIFT, Inc. -- Investment Grade Fixed Income Portfolio (formerly known as Fixed Income II Portfolio) Target Portfolio: MSIF, Inc. -- Fixed Income III Portfolio As Of December 31, 2001 (Unaudited) [Enlarge/Download Table] =================================================================================================================================== MSIFT Investment MSIF Fixed Income III Grade Fixed Income Pro-Forma Portfolio Portfolio Combined Cusip Number Security Description (f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ -------------------- --------------------- ------------------ ---------------- 00184AAB1 0000000000 AOL TIME WARNER INC NT 610,000.000 0.000 610,000.000 00184AAC9 0000000000 AOL TIME WARNER INC DEB 235,000.000 700,000.000 935,000.000 001957AZ2 0000000000 AT&T CORP USD SR NT 14 120,000.000 135,000.000 255,000.000 001957BA6 0000000000 AT&T CORP USD SR NT 144A 850,000.000 955,000.000 1,805,000.000 00209AAC0 0000000000 AT&T WIRELESS SVCS INC 0.000 865,000.000 865,000.000 00209AAE6 0000000000 AT&T WIRELESS SVCS INC 615,000.000 0.000 615,000.000 00817YAB4 0000000000 AETNA INC NEW SR NT 840,000.000 1,090,000.000 1,930,000.000 008685AB5 0000000000 AHOLD FIN U S A INC NT 1,050,000.000 525,000.000 1,575,000.000 008685AC3 0000000000 AHOLD FIN U S A INC GTD N 0.000 140,000.000 140,000.000 01F060618 0000000000 TBA FNMA SF 6.00 30 YRS 19,200,000.000 20,950,000.000 40,150,000.000 01F060626 0000000000 TBA FNMA SF 6.00 30 YRS 1,000,000.000 1,750,000.000 2,750,000.000 01F062614 0000000000 TBA FNMA SF 6.50 30 YRS 8,200,000.000 25,000,000.000 33,200,000.000 01F070419 0000000000 TBA FNMA SF 7.00 15 YRS 0.000 1,600,000.000 1,600,000.000 01F080616 0000000000 TBA FNMA SF 8.00 30 YRS 19,000,000.000 7,750,000.000 26,750,000.000 01N070618 0000000000 TBA GNMA I SF . YR 0.000 18,950,000.000 18,950,000.000 023654BJ4 0000000000 AMERICAL WEST AIRLINES 860,032.850 0.000 860,032.850 026351AU0 0000000000 AMERICAN GEN CORP NT 0.000 545,000.000 545,000.000 02970KAC1 0000000000 AMERICAN SOUTHWEST FINL S 0.000 611,077.870 611,077.870 02970KAF4 0000000000 AMERICAN SOUTHWEST FINL S 0.000 7,282,185.770 7,282,185.770 02R062619 0000000000 TBA FHLMC GOLD SF 6.50 3 0.000 3,000,000.000 3,000,000.000 02R070612 0000000000 TBA FHLMC GOLD SF 7.00 3 24,500,000.000 11,600,000.000 36,100,000.000 02R072618 0000000000 TBA FHLMC GOLD SF 7.50 3 0.000 8,300,000.000 8,300,000.000 036734AA9 0000000000 ANTHEM INS COS INC SURPLU 285,000.000 895,000.000 1,180,000.000 036734AC5 0000000000 ANTHEM INS COS INC SURPLU 250,000.000 0.000 250,000.000 039006AJ0 0000000000 ARCADIA AUTOMOBILE REC. 0.000 0.020 0.020 039006AN1 0000000000 ADCADIA AUTOMOBILE RECEIV 0.000 40,909.600 40,909.600 045424FJ2 0000000000 ASSET SECURITIZATION CORP 0.000 5,770,897.680 5,770,897.680 =================================================================================================================================== MSIF Fixed MSIFT Investment Income III Grade Fixed Income Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description (f) Market Value Market Value Market Value % of Net Assets ------------ -------------------- ------------ ------------------ ------------------ --------------- 00184AAB1 0000000000 AOL TIME WARNER INC NT 625,095.67 0.00 625,095.67 0.12% 00184AAC9 0000000000 AOL TIME WARNER INC DEB 248,576.42 734,437.90 983,014.32 0.19% 001957AZ2 0000000000 AT&T CORP USD SR NT 14 123,308.40 137,498.04 260,806.44 0.05% 001957BA6 0000000000 AT&T CORP USD SR NT 144A 892,704.00 988,628.42 1,881,332.42 0.36% 00209AAC0 0000000000 AT&T WIRELESS SVCS INC 0.00 972,843.88 972,843.88 0.19% 00209AAE6 0000000000 AT&T WIRELESS SVCS INC 657,440.54 0.00 657,440.54 0.13% 00817YAB4 0000000000 AETNA INC NEW SR NT 827,295.84 1,068,234.88 1,895,530.72 0.37% 008685AB5 0000000000 AHOLD FIN U S A INC NT 1,009,497.30 497,717.33 1,507,214.63 0.29% 008685AC3 0000000000 AHOLD FIN U S A INC GTD N 0.00 153,352.78 153,352.78 0.03% 01F060618 0000000000 TBA FNMA SF 6.00 30 YRS 8,773,952.00 20,354,182.00 39,128,134.00 7.59% 01F060626 0000000000 TBA FNMA SF 6.00 30 YRS 973,440.00 0.00 973,440.00 0.19% 01F062614 0000000000 TBA FNMA SF 6.50 30 YRS 8,200,000.00 24,875,000.00 33,075,000.00 6.41% 01F070419 0000000000 TBA FNMA SF 7.00 15 YRS 0.00 1,650,496.00 1,650,496.00 0.32% 01F080616 0000000000 TBA FNMA SF 8.00 30 YRS 9,900,410.00 8,102,315.00 28,002,725.00 5.43% 01N070618 0000000000 TBA GNMA I SF . YR 0.00 19,275,750.50 19,275,750.50 3.74% 023654BJ4 0000000000 AMERICAL WEST AIRLINES 861,970.42 0.00 861,970.42 0.17% 026351AU0 0000000000 AMERICAN GEN CORP NT 0.00 589,758.67 589,758.67 0.11% 02970KAC1 0000000000 AMERICAN SOUTHWEST FINL S 0.00 629,764.63 629,764.63 0.12% 02970KAF4 0000000000 AMERICAN SOUTHWEST FINL S 0.00 142,730.84 142,730.84 0.03% 02R062619 0000000000 TBA FHLMC GOLD SF 6.50 3 0.00 2,987,340.00 2,987,340.00 0.58% 02R070612 0000000000 TBA FHLMC GOLD SF 7.00 3 4,965,745.00 11,775,740.00 36,741,485.00 7.12% 02R072618 0000000000 TBA FHLMC GOLD SF 7.50 3 0.00 8,534,724.00 8,534,724.00 1.65% 036734AA9 0000000000 ANTHEM INS COS INC SURPLU 286,860.77 893,449.86 1,180,310.63 0.23% 036734AC5 0000000000 ANTHEM INS COS INC SURPLU 268,654.25 0.00 268,654.25 0.05% 039006AJ0 0000000000 ARCADIA AUTOMOBILE REC. 0.00 0.02 0.02 0.00% 039006AN1 0000000000 ADCADIA AUTOMOBILE RECEIV 0.00 41,006.18 41,006.18 0.01% 045424FJ2 0000000000 ASSET SECURITIZATION CORP 0.00 409,329.77 409,329.77 0.08% 1
49757th Page of 98TOC1stPreviousNextBottomJust 57th
[Enlarge/Download Table] =================================================================================================================================== MSIFT Investment MSIF Fixed Income III Grade Fixed Income Pro-Forma Portfolio Portfolio Combined Cusip Number Security Description (f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ -------------------- --------------------- ------------------ ---------------- 055240AE5 0000000000 BA MTG SECS INC 1997-1 MT 0.000 6,895.960 6,895.960 055959AH3 0000000000 BMW VEH OWNER TR 2000 A 482,891.930 765,338.130 1,248,230.060 058919AA9 0000000000 BANC ONE FINL SVCS HOME E 0.000 2,898.250 2,898.250 060506PL0 0000000000 BANK AMER MTG SECS INC MT 312,826.010 0.000 312,826.010 0609902B3 0000000000 BANK OF AMERICA SWAP/CMBS* 0.000 2,100,000.000 2,100,000.000 0609902C1 0000000000 BANK OF AMERICA SWAP/CMBS* 0.000 (2,100,000.000) (2,100,000.000) 0639902G9 0000000000 BOA SWAP/LONG/CMBS INDEX* 0.000 3,200,000.000 3,200,000.000 0639902K0 0000000000 BOA CMBS SWAP LONG* 0.000 625,000.000 625,000.000 0639902L8 0000000000 BOA CMBS SWAP SHORT* 0.000 (625,000.000) (625,000.000) 0639902M6 0000000000 BOA CMBS SWAP LONG* 0.000 630,000.000 630,000.000 0639902N4 0000000000 BOA CMBS SWAP SHORT* 0.000 (630,000.000) (630,000.000) 06422QAA7 0000000000 BANK ONE CORP MEDIUM* 0.000 1,120,000.000 1,120,000.000 0649902M5 0000000000 SWAP BOA CMBS LONG* 0.000 1,500,000.000 1,500,000.000 0649902N3 0000000000 SWAP BOA CMBS SHORT LIBOR* 0.000 (1,500,000.000) (1,500,000.000) 0649902T0 0000000000 BOA CMBS LONG* 0.000 1,250,000.000 1,250,000.000 0649902U7 0000000000 BOA CMBS LIBOR SHORT* 0.000 (1,250,000.000) (1,250,000.000) 0649902V5 0000000000 BOA CMBS LONG* 0.000 590,000.000 590,000.000 0649902W3 0000000000 BOA CMBS LIBOR SHORT* 0.000 (590,000.000) (590,000.000) 0699902P3 0000000000 BOA SWAP/SHORT/CMBS INDEX* 0.000 (3,200,000.000) (3,200,000.000) 079867AW7 0000000000 BELLSOUTH TELECOMMUNICATI 0.000 885,000.000 885,000.000 087858AA4 0000000000 BEVERLY FIN 144A 0.000 675,000.000 675,000.000 097014AG9 0000000000 BOEING CAP CORP SR NT 620,000.000 735,000.000 1,355,000.000 110122AG3 0000000000 BRISTOL MYERS SQUIBB CO 1,775,000.000 0.000 1,775,000.000 =================================================================================================================================== MSIF Fixed MSIFT Investment Income III Grade Fixed Income Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description (f) Market Value Market Value Market Value % of Net Assets ------------ -------------------- ------------ ------------------ ------------------ --------------- 055240AE5 0000000000 BA MTG SECS INC 1997-1 MT 0.00 6,896.10 6,896.10 0.00% 055959AH3 0000000000 BMW VEH OWNER TR 2000 A 486,012.57 770,574.50 1,256,587.07 0.24% 058919AA9 0000000000 BANC ONE FINL SVCS HOME E 0.00 2,894.45 2,894.45 0.00% 060506PL0 0000000000 BANK AMER MTG SECS INC MT 314,155.52 0.00 314,155.52 0.06% 0609902B3 0000000000 BANK OF AMERICA SWAP/CMBS* 0.00 2,113,398.00 2,113,398.00 0.41% 0609902C1 0000000000 BANK OF AMERICA SWAP/CMBS* 0.00 (2,100,021.00) (2,100,021.00) -0.41% 0639902G9 0000000000 BOA SWAP/LONG/CMBS INDEX* 0.00 3,247,488.00 3,247,488.00 0.63% 0639902K0 0000000000 BOA CMBS SWAP LONG* 0.00 623,318.75 623,318.75 0.12% 0639902L8 0000000000 BOA CMBS SWAP SHORT* 0.00 (625,006.25) (625,006.25) -0.12% 0639902M6 0000000000 BOA CMBS SWAP LONG* 0.00 628,305.30 628,305.30 0.12% 0639902N4 0000000000 BOA CMBS SWAP SHORT* 0.00 (630,006.30) (630,006.30) -0.12% 06422QAA7 0000000000 BANK ONE CORP MEDIUM* 0.00 1,100,086.40 1,100,086.40 0.21% 0649902M5 0000000000 SWAP BOA CMBS LONG* 0.00 1,480,665.00 1,480,665.00 0.29% 0649902N3 0000000000 SWAP BOA CMBS SHORT LIBOR* 0.00 (1,500,015.00) (1,500,015.00) -0.29% 0649902T0 0000000000 BOA CMBS LONG* 0.00 1,226,725.00 1,226,725.00 0.24% 0649902U7 0000000000 BOA CMBS LIBOR SHORT* 0.00 (1,250,012.50) (1,250,012.50) -0.24% 0649902V5 0000000000 BOA CMBS LONG* 0.00 579,621.90 579,621.90 0.11% 0649902W3 0000000000 BOA CMBS LIBOR SHORT* 0.00 (590,005.90) (590,005.90) -0.11% 0699902P3 0000000000 BOA SWAP/SHORT/CMBS INDEX* 0.00 (3,200,032.00) (3,200,032.00) -0.62% 079867AW7 0000000000 BELLSOUTH TELECOMMUNICATI 0.00 834,116.04 834,116.04 0.16% 087858AA4 0000000000 BEVERLY FIN 144A 0.00 717,747.75 717,747.75 0.14% 097014AG9 0000000000 BOEING CAP CORP SR NT 616,983.08 720,565.34 1,337,548.42 0.26% 110122AG3 0000000000 BRISTOL MYERS SQUIBB CO 1,758,270.63 0.00 1,758,270.63 0.34% 2
49758th Page of 98TOC1stPreviousNextBottomJust 58th
[Enlarge/Download Table] =================================================================================================================================== MSIFT Investment MSIF Fixed Income III Grade Fixed Income Pro-Forma Portfolio Portfolio Combined Cusip Number Security Description (f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ -------------------- --------------------- ------------------ ---------------- 125509BF5 0000000000 CIGNA CORP SR NT 235,000.000 375,000.000 610,000.000 125509BG3 0000000000 CIGNA CORPORATION 330,000.000 280,000.000 610,000.000 12589YAD1 0000000000 CMS PANHANDLE HLDG CO NT 540,000.000 0.000 540,000.000 12589YAF6 0000000000 CMS PANHANDLE HLDG CO NT 0.000 1,240,000.000 1,240,000.000 125924AU4 0000000000 CPS AUTO GRANTOR TR 1997- 0.000 21,474.710 21,474.710 126650AD2 0000000000 CVS CORP NT 860,000.000 0.000 860,000.000 12669BTH5 0000000000 CWMBS INC PASS THRU CTFS 592,775.040 0.000 592,775.040 130209QT9 0000000000 CALIFORNIA FED BK A FED S 0.000 22,608.760 22,608.760 14426EAC0 0000000000 CAROUSEL CTR FIN INC MTG 0.000 1,400,000.000 1,400,000.000 152312AG9 0000000000 CENTEX CORP SR NT 435,000.000 590,000.000 1,025,000.000 152314DV9 0000000000 CENTEX HOME EQUITY LN TR 0.000 1,068,376.870 1,068,376.870 161505DJ8 0000000000 CHASE COML MTG SECS CORP 959,393.734 0.000 959,393.734 161505DK5 0000000000 CHASE COML MTG SECS CORP 0.000 2,275,000.000 2,275,000.000 16151RAX1 0000000000 CHASE CR CARD OWNER TR 1,045,000.000 0.000 1,045,000.000 161581BW2 0000000000 CHASE MANHATTAN AUTO OWN 0.000 2,000,000.000 2,000,000.000 16161ABU1 0000000000 CHASE MANHATTAN CORP NEW 1,000,000.000 0.000 1,000,000.000 166778AH3 0000000000 CHEVY CHASE AUTO RECEIVAB 0.000 75,170.020 75,170.020 1689902A6 0000000000 CSFB SHORT FIXED SWAP* 0.000 (1,250,000.000) (1,250,000.000) 17303MJC4 0000000000 CITICORP MEDIUM TERM SUB 0.000 1,455,000.000 1,455,000.000 17305EAC9 0000000000 CITIBANK CR CARD ISSUANCE 500,000.000 840,000.000 1,340,000.000 17305EAE5 0000000000 CITIBANK CR CARD ISSUANCE 1,805,000.000 0.000 1,805,000.000 184502AK8 0000000000 CLEAR CHANNEL COMMUNICATI 490,000.000 885,000.000 1,375,000.000 20029PAF6 0000000000 COMCAST CABLE COMMUNICATI 410,000.000 320,000.000 730,000.000 20029PAL3 0000000000 COMCAST CABLE COMMUNICATI 360,000.000 555,000.000 915,000.000 =================================================================================================================================== MSIF Fixed MSIFT Investment Income III Grade Fixed Income Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description (f) Market Value Market Value Market Value % of Net Assets ------------ -------------------- ------------ ------------------ ------------------ --------------- 125509BF5 0000000000 CIGNA CORP SR NT 240,736.59 382,211.25 622,947.84 0.12% 125509BG3 0000000000 CIGNA CORPORATION 324,036.24 273,434.28 597,470.52 0.12% 12589YAD1 0000000000 CMS PANHANDLE HLDG CO NT 508,486.68 0.00 508,486.68 0.10% 12589YAF6 0000000000 CMS PANHANDLE HLDG CO NT 0.00 1,038,157.76 1,038,157.76 0.20% 125924AU4 0000000000 CPS AUTO GRANTOR TR 1997- 0.00 21,504.44 21,504.44 0.00% 126650AD2 0000000000 CVS CORP NT 866,161.04 0.00 866,161.04 0.17% 12669BTH5 0000000000 CWMBS INC PASS THRU CTFS 594,162.13 0.00 594,162.13 0.12% 130209QT9 0000000000 CALIFORNIA FED BK A FED S 0.00 22,608.76 22,608.76 0.00% 14426EAC0 0000000000 CAROUSEL CTR FIN INC MTG 0.00 1,422,890.00 1,422,890.00 0.28% 152312AG9 0000000000 CENTEX CORP SR NT 443,156.69 598,125.48 1,041,282.17 0.20% 152314DV9 0000000000 CENTEX HOME EQUITY LN TR 0.00 1,069,798.24 1,069,798.24 0.21% 161505DJ8 0000000000 CHASE COML MTG SECS CORP 1,010,999.52 0.00 1,010,999.52 0.20% 161505DK5 0000000000 CHASE COML MTG SECS CORP 0.00 2,382,744.00 2,382,744.00 0.46% 16151RAX1 0000000000 CHASE CR CARD OWNER TR 1,064,124.96 0.00 1,064,124.96 0.21% 161581BW2 0000000000 CHASE MANHATTAN AUTO OWN 0.00 1,993,562.40 1,993,562.40 0.39% 16161ABU1 0000000000 CHASE MANHATTAN CORP NEW 996,033.00 0.00 996,033.00 0.19% 166778AH3 0000000000 CHEVY CHASE AUTO RECEIVAB 0.00 75,553.62 75,553.62 0.01% 1689902A6 0000000000 CSFB SHORT FIXED SWAP* 0.00 (1,186,775.00) (1,186,775.00) -0.23% 17303MJC4 0000000000 CITICORP MEDIUM TERM SUB 0.00 1,469,391.41 1,469,391.41 0.28% 17305EAC9 0000000000 CITIBANK CR CARD ISSUANCE 529,861.95 888,036.66 1,417,898.61 0.27% 17305EAE5 0000000000 CITIBANK CR CARD ISSUANCE 1,932,220.55 0.00 1,932,220.55 0.37% 184502AK8 0000000000 CLEAR CHANNEL COMMUNICATI 506,150.40 909,733.98 1,415,884.38 0.27% 20029PAF6 0000000000 COMCAST CABLE COMMUNICATI 452,064.77 350,713.60 802,778.37 0.16% 20029PAL3 0000000000 COMCAST CABLE COMMUNICATI 361,565.64 554,549.90 916,115.54 0.18% 3
49759th Page of 98TOC1stPreviousNextBottomJust 59th
[Enlarge/Download Table] =================================================================================================================================== MSIFT Investment MSIF Fixed Income III Grade Fixed Income Pro-Forma Portfolio Portfolio Combined Cusip Number Security Description (f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ -------------------- --------------------- ------------------ ---------------- 207678AE3 0000000000 CONNECTICUT RRB SPL PURP 836,803.750 1,300,000.000 2,136,803.750 208251AE8 0000000000 CONOCO INC NT 1,180,000.000 1,335,000.000 2,515,000.000 209615BX0 0000000000 CONSOLIDATED NAT GAS CO 260,000.000 300,000.000 560,000.000 210805BU0 0000000000 CONTINENTAL AIRLS PASS 708,046.940 0.000 708,046.940 210805CB1 0000000000 CONTINENTAL AIRLS PASS TH 0.000 627,674.900 627,674.900 210805CQ8 0000000000 CONTINENTAL AIRLS PASS TH 0.000 383,025.610 383,025.610 224044AY3 0000000000 COX COMMUNICATIONS INC 525,000.000 670,000.000 1,195,000.000 225516AB9 0000000000 CREEKWOOD CAP CORP COLL N 0.000 670,562.240 670,562.240 2259902A7 0000000000 CREDIT SUISSE FIRST BOSTO 0.000 1,375,000.000 1,375,000.000 2259902B5 0000000000 CREDIT SUISSE FIRST BOSTO 0.000 (1,375,000.000) (1,375,000.000) 2259902C3 0000000000 CSFB LONG LIBOR SWAP* 0.000 1,250,000.000 1,250,000.000 2259902D1 0000000000 CSFB CMBS SWAP LONG* 0.000 1,500,000.000 1,500,000.000 2259902E9 0000000000 CSFB SMBS CWAP SHORT* 0.000 (1,500,000.000) (1,500,000.000) 229396AA4 0000000000 CRYSTAL RUN PPTY INC MTG 0.000 1,100,000.000 1,100,000.000 233331AE7 0000000000 DTE ENERGY CO NT 310,000.000 435,000.000 745,000.000 233835AK3 0000000000 DAIMLER CHRYSLER NORTH AM 315,000.000 0.000 315,000.000 233835AP2 0000000000 DAIMLER CHRYSLER NORTH AM 440,000.000 0.000 440,000.000 233835AQ0 0000000000 DAIMLER CHRYSLER NORTH AM 130,000.000 730,000.000 860,000.000 23383VAK6 0000000000 DAIMLERCHRYSLER AUTO TR 2 1,310,000.000 0.000 1,310,000.000 23383VAQ3 0000000000 DAIMLERCHRYSLER AUTO TR 0.000 947,300.140 947,300.140 23383VBC3 0000000000 DAIMLERCHRYSLER AUTO TR 0.000 2,100,000.000 2,100,000.000 239753DJ2 0000000000 DAYTON HUDSON CORP DEB 0.000 950,000.000 950,000.000 247126AC9 0000000000 DELPHI AUTOMOTIVE SYS COR 185,000.000 355,000.000 540,000.000 =================================================================================================================================== MSIF Fixed MSIFT Investment Income III Grade Fixed Income Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description (f) Market Value Market Value Market Value % of Net Assets ------------ -------------------- ------------ ------------------ ------------------ --------------- 207678AE3 0000000000 CONNECTICUT RRB SPL PURP 849,339.07 1,314,209.00 2,163,548.07 0.42% 208251AE8 0000000000 CONOCO INC NT 1,199,904.24 1,343,047.38 2,542,951.62 0.49% 209615BX0 0000000000 CONSOLIDATED NAT GAS CO 252,746.00 291,966.60 544,712.60 0.11% 210805BU0 0000000000 CONTINENTAL AIRLS PASS 622,306.49 0.00 622,306.49 0.12% 210805CB1 0000000000 CONTINENTAL AIRLS PASS TH 0.00 545,525.81 545,525.81 0.11% 210805CQ8 0000000000 CONTINENTAL AIRLS PASS TH 0.00 326,744.90 326,744.90 0.06% 224044AY3 0000000000 COX COMMUNICATIONS INC 560,607.08 711,937.31 1,272,544.39 0.25% 225516AB9 0000000000 CREEKWOOD CAP CORP COLL N 0.00 717,407.72 717,407.72 0.14% 2259902A7 0000000000 CREDIT SUISSE FIRST BOSTO 0.00 1,387,883.75 1,387,883.75 0.27% 2259902B5 0000000000 CREDIT SUISSE FIRST BOSTO 0.00 (1,375,013.75) (1,375,013.75) -0.27% 2259902C3 0000000000 CSFB LONG LIBOR SWAP* 0.00 1,250,012.50 1,250,012.50 0.24% 2259902D1 0000000000 CSFB CMBS SWAP LONG* 0.00 1,456,830.00 1,456,830.00 0.28% 2259902E9 0000000000 CSFB SMBS CWAP SHORT* 0.00 (1,500,015.00) (1,500,015.00) -0.29% 229396AA4 0000000000 CRYSTAL RUN PPTY INC MTG 0.00 1,121,197.00 1,121,197.00 0.22% 233331AE7 0000000000 DTE ENERGY CO NT 319,905.43 446,530.55 766,435.98 0.15% 233835AK3 0000000000 DAIMLER CHRYSLER NORTH AM 330,223.64 0.00 330,223.64 0.06% 233835AP2 0000000000 DAIMLER CHRYSLER NORTH AM 456,536.96 0.00 456,536.96 0.09% 233835AQ0 0000000000 DAIMLER CHRYSLER NORTH AM 138,776.43 773,467.85 912,244.28 0.18% 23383VAK6 0000000000 DAIMLERCHRYSLER AUTO TR 2 1,357,107.21 0.00 1,357,107.21 0.26% 23383VAQ3 0000000000 DAIMLERCHRYSLER AUTO TR 0.00 963,292.27 963,292.27 0.19% 23383VBC3 0000000000 DAIMLERCHRYSLER AUTO TR 0.00 2,118,730.53 2,118,730.53 0.41% 239753DJ2 0000000000 DAYTON HUDSON CORP DEB 0.00 949,727.35 949,727.35 0.18% 247126AC9 0000000000 DELPHI AUTOMOTIVE SYS COR 166,776.02 314,083.06 480,859.08 0.09% 4
49760th Page of 98TOC1stPreviousNextBottomJust 60th
[Enlarge/Download Table] =================================================================================================================================== MSIFT Investment MSIF Fixed Income III Grade Fixed Income Pro-Forma Portfolio Portfolio Combined Cusip Number Security Description (f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ -------------------- --------------------- ------------------ ---------------- 250847DS6 0000000000 DETROIT EDISON CO 120,000.000 0.000 120,000.000 250854AE6 0000000000 DETROIT EDISON 685,000.000 1,035,000.000 1,720,000.000 25156PAB9 0000000000 DEUTSCHE TELEKOM INT FIN 555,000.000 0.000 555,000.000 25156PAC7 0000000000 DEUTSCHE TELEKOM INTL FIN 0.000 270,000.000 270,000.000 268766BH4 0000000000 EOP OPER LTD PARTNERSHIP 0.000 865,000.000 865,000.000 268917FP1 0000000000 EQCC HOME EQUITY LN TR 0.000 24,786.400 24,786.400 29444GAH0 0000000000 EQUITABLE COS INC NT 0.000 760,000.000 760,000.000 309588AC5 0000000000 FARMERS EXCH CAP 2,500,000.000 1,045,000.000 3,545,000.000 309601AA0 0000000000 FARMERS INS EXCHANGE SURP 0.000 975,000.000 975,000.000 31282YC80 0000000000 FHLMC CORP PC ST GROUP NO 0.000 4,180,927.430 4,180,927.430 31282YCD9 0000000000 FHLMC CORP PC ST GROUP NO 0.000 1,393,919.170 1,393,919.170 31283HNJ0 0000000000 FHLMC GOLD PC GROUP NO: 0.000 1,067,123.590 1,067,123.590 31290K2Q1 0000000000 FHLMC CORP PC GROUP NO: 0.000 210,032.820 210,032.820 31290K3A5 0000000000 FHLMC CORP PC GROUP NO: 0.000 90,625.500 90,625.500 31292HCH5 0000000000 FHLMC GOLD PC GROUP NO: 0.000 566,566.590 566,566.590 31292HCV4 0000000000 FHLMC GOLD PC GROUP NO: 0.000 467,617.970 467,617.970 31292HGQ1 0000000000 FHLMC GOLD PC GROUP NO: 0.000 2,629,334.210 2,629,334.210 31292HLY8 0000000000 FHLMC GOLD PC GROUP NO: 74,410.370 0.000 74,410.370 31292HMB7 0000000000 FHLMC GOLD PC GROUP NO: 0.000 207,726.110 207,726.110 31292HMX9 0000000000 FHLMC GOLD PC GROUP NO: 0.000 255,867.840 255,867.840 31293XWZ7 0000000000 FHLMC GOLD PC GROUP NO: 197,473.370 0.000 197,473.370 31293YGX8 0000000000 FHLMC GOLD PC GROUP NO: 52,333.330 0.000 52,333.330 31294GCC6 0000000000 FHLMC GOLD PC GROUP NO: 432,267.600 0.000 432,267.600 =================================================================================================================================== MSIF Fixed MSIFT Investment Income III Grade Fixed Income Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description (f) Market Value Market Value Market Value % of Net Assets ------------ -------------------- ------------ ------------------ ------------------ --------------- 250847DS6 0000000000 DETROIT EDISON CO 117,855.60 0.00 117,855.60 0.02% 250854AE6 0000000000 DETROIT EDISON 688,846.14 1,033,160.91 1,722,007.05 0.33% 25156PAB9 0000000000 DEUTSCHE TELEKOM INT FIN 607,385.90 0.00 607,385.90 0.12% 25156PAC7 0000000000 DEUTSCHE TELEKOM INTL FIN 0.00 297,327.24 297,327.24 0.06% 268766BH4 0000000000 EOP OPER LTD PARTNERSHIP 0.00 821,405.73 821,405.73 0.16% 268917FP1 0000000000 EQCC HOME EQUITY LN TR 0.00 24,786.40 24,786.40 0.00% 29444GAH0 0000000000 EQUITABLE COS INC NT 0.00 773,454.28 773,454.28 0.15% 309588AC5 0000000000 FARMERS EXCH CAP 1,985,835.00 824,338.85 2,810,173.85 0.54% 309601AA0 0000000000 FARMERS INS EXCHANGE SURP 0.00 926,788.20 926,788.20 0.18% 31282YC80 0000000000 FHLMC CORP PC ST GROUP NO 0.00 779,324.87 779,324.87 0.15% 31282YCD9 0000000000 FHLMC CORP PC ST GROUP NO 0.00 295,984.80 295,984.80 0.06% 31283HNJ0 0000000000 FHLMC GOLD PC GROUP NO: 0.00 1,116,049.07 1,116,049.07 0.22% 31290K2Q1 0000000000 FHLMC CORP PC GROUP NO: 0.00 231,262.94 231,262.94 0.04% 31290K3A5 0000000000 FHLMC CORP PC GROUP NO: 0.00 100,040.58 100,040.58 0.02% 31292HCH5 0000000000 FHLMC GOLD PC GROUP NO: 0.00 592,542.54 592,542.54 0.11% 31292HCV4 0000000000 FHLMC GOLD PC GROUP NO: 0.00 489,057.32 489,057.32 0.09% 31292HGQ1 0000000000 FHLMC GOLD PC GROUP NO: 0.00 2,779,700.57 2,779,700.57 0.54% 31292HLY8 0000000000 FHLMC GOLD PC GROUP NO: 78,037.88 0.00 78,037.88 0.02% 31292HMB7 0000000000 FHLMC GOLD PC GROUP NO: 0.00 217,249.94 217,249.94 0.04% 31292HMX9 0000000000 FHLMC GOLD PC GROUP NO: 0.00 267,598.87 267,598.87 0.05% 31293XWZ7 0000000000 FHLMC GOLD PC GROUP NO: 207,100.20 0.00 207,100.20 0.04% 31293YGX8 0000000000 FHLMC GOLD PC GROUP NO: 54,796.24 0.00 54,796.24 0.01% 31294GCC6 0000000000 FHLMC GOLD PC GROUP NO: 453,340.65 0.00 453,340.65 0.09% 5
49761st Page of 98TOC1stPreviousNextBottomJust 61st
[Enlarge/Download Table] =================================================================================================================================== MSIFT Investment MSIF Fixed Income III Grade Fixed Income Pro-Forma Portfolio Portfolio Combined Cusip Number Security Description (f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ -------------------- --------------------- ------------------ ---------------- 31294GNH3 0000000000 FHLMC GOLD PC GROUP NO: 0.000 903,313.810 903,313.810 31294GSZ8 0000000000 FHLMC GOLD PC GROUP NO: 0.000 53,874.690 53,874.690 31295VLV0 0000000000 FHLMC GOLD PC GROUP NO: 0.000 311,478.290 311,478.290 31295W7B8 0000000000 FHLMC GOLD PC GROUP NO: 0.000 342,617.570 342,617.570 31295WUQ9 0000000000 FHLMC GOLD PC GROUP NO: 0.000 233,671.350 233,671.350 31297YVY5 0000000000 FHLMC GOLD PC GROUP NO: 662,950.210 0.000 662,950.210 31297YWY4 0000000000 FHLMC GOLD PC GROUP NO: 0.000 570,139.070 570,139.070 31298AWH2 0000000000 FHLMC GOLD PC GROUP NO: 0.000 876,133.670 876,133.670 31298CNT2 0000000000 FHLMC GOLD PC GROUP NO: 0.000 850,626.770 850,626.770 31298D2H9 0000000000 FHLMC GOLD PC GROUP NO: 0.000 737,797.120 737,797.120 31298D3H8 0000000000 FHLMC GOLD PC GROUP NO: 21,442.940 0.000 21,442.940 31298D4E4 0000000000 FHLMC GOLD PC GROUP NO: 23,616.990 0.000 23,616.990 31298DZ83 0000000000 FHLMC GOLD PC GROUP NO: 76,502.830 0.000 76,502.830 31298EK53 0000000000 FHLMC GOLD PC GROUP NO: 0.000 720,024.840 720,024.840 31298FR53 0000000000 FHLMC GOLD PC GROUP NO: 0.000 46,736.810 46,736.810 31298G5X4 0000000000 FHLMC GOLD PC GROUP NO: 0.000 619,552.500 619,552.500 31298HYL6 0000000000 FHLMC GOLD PC GROUP NO: 0.000 324,346.360 324,346.360 31298LFA2 0000000000 FHLMC GOLD PC GROUP NO: 42,053.640 0.000 42,053.640 31298P7G9 0000000000 FHLMC GOLD PC GROUP NO: 849,198.340 0.000 849,198.340 31298PCK4 0000000000 FHLMC GOLD PC GROUP NO: 0.000 708,283.540 708,283.540 31298PXH8 0000000000 FHLMC GOLD PC GROUP NO: 905,601.100 0.000 905,601.100 31298PXJ4 0000000000 FHLMC GOLD PC GROUP NO: 643,368.430 0.000 643,368.430 31298RTY2 0000000000 FHLMC GOLD PC GROUP NO: 0.000 1,861,606.980 1,861,606.980 31298UD55 0000000000 FHLMC GOLD PC GROUP NO: 0.000 227,415.310 227,415.310 313385RJ7 0000000000 FEDERAL HOME LN BK CONS D 12,000,000.000 10,000,000.000 22,000,000.000 =================================================================================================================================== MSIF Fixed MSIFT Investment Income III Grade Fixed Income Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description (f) Market Value Market Value Market Value % of Net Assets ------------ -------------------- ------------ ------------------ ------------------ --------------- 31294GNH3 0000000000 FHLMC GOLD PC GROUP NO: 0.00 944,728.94 944,728.94 0.18% 31294GSZ8 0000000000 FHLMC GOLD PC GROUP NO: 0.00 56,344.74 56,344.74 0.01% 31295VLV0 0000000000 FHLMC GOLD PC GROUP NO: 0.00 348,251.42 348,251.42 0.07% 31295W7B8 0000000000 FHLMC GOLD PC GROUP NO: 0.00 379,884.08 379,884.08 0.07% 31295WUQ9 0000000000 FHLMC GOLD PC GROUP NO: 0.00 259,090.12 259,090.12 0.05% 31297YVY5 0000000000 FHLMC GOLD PC GROUP NO: 694,149.97 0.00 694,149.97 0.13% 31297YWY4 0000000000 FHLMC GOLD PC GROUP NO: 0.00 596,278.81 596,278.81 0.12% 31298AWH2 0000000000 FHLMC GOLD PC GROUP NO: 0.00 916,302.65 916,302.65 0.18% 31298CNT2 0000000000 FHLMC GOLD PC GROUP NO: 0.00 889,626.31 889,626.31 0.17% 31298D2H9 0000000000 FHLMC GOLD PC GROUP NO: 0.00 771,623.64 771,623.64 0.15% 31298D3H8 0000000000 FHLMC GOLD PC GROUP NO: 22,488.28 0.00 22,488.28 0.00% 31298D4E4 0000000000 FHLMC GOLD PC GROUP NO: 24,768.32 0.00 24,768.32 0.00% 31298DZ83 0000000000 FHLMC GOLD PC GROUP NO: 80,232.34 0.00 80,232.34 0.02% 31298EK53 0000000000 FHLMC GOLD PC GROUP NO: 0.00 753,036.54 753,036.54 0.15% 31298FR53 0000000000 FHLMC GOLD PC GROUP NO: 0.00 48,879.60 48,879.60 0.01% 31298G5X4 0000000000 FHLMC GOLD PC GROUP NO: 0.00 647,957.74 647,957.74 0.13% 31298HYL6 0000000000 FHLMC GOLD PC GROUP NO: 0.00 339,216.99 339,216.99 0.07% 31298LFA2 0000000000 FHLMC GOLD PC GROUP NO: 44,032.77 0.00 44,032.77 0.01% 31298P7G9 0000000000 FHLMC GOLD PC GROUP NO: 889,163.31 0.00 889,163.31 0.17% 31298PCK4 0000000000 FHLMC GOLD PC GROUP NO: 0.00 740,756.92 740,756.92 0.14% 31298PXH8 0000000000 FHLMC GOLD PC GROUP NO: 948,220.50 0.00 948,220.50 0.18% 31298PXJ4 0000000000 FHLMC GOLD PC GROUP NO: 673,646.64 0.00 673,646.64 0.13% 31298RTY2 0000000000 FHLMC GOLD PC GROUP NO: 0.00 1,946,957.94 1,946,957.94 0.38% 31298UD55 0000000000 FHLMC GOLD PC GROUP NO: 0.00 237,841.85 237,841.85 0.05% 313385RJ7 0000000000 FEDERAL HOME LN BK CONS D 11,997,980.00 9,998,558.33 21,996,538.33 4.26% 6
49762nd Page of 98TOC1stPreviousNextBottomJust 62nd
[Enlarge/Download Table] =================================================================================================================================== MSIFT Investment MSIF Fixed Income III Grade Fixed Income Pro-Forma Portfolio Portfolio Combined Cusip Number Security Description (f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ -------------------- --------------------- ------------------ ---------------- 313385TZ9 0000000000 FHLB DISC NT 0.000 8,525,000.000 8,525,000.000 313397RG8 0000000000 FEDERAL HOME LN MTG CORP 9,000,000.000 0.000 9,000,000.000 313397RN3 0000000000 FEDERAL HOME LN MTG CORP 12,000,000.000 0.000 12,000,000.000 3133T4M78 0000000000 FEDERAL HOME LN MTG CORP 1,617,974.960 0.000 1,617,974.960 3133T5AK9 0000000000 FEDERAL HOME LN MTG CORP 0.000 408,636.900 408,636.900 3133T87K7 0000000000 FEDERAL HOME LN MTG CORP 0.000 2,550,000.000 2,550,000.000 3133TAF72 0000000000 FEDERAL HOME LN MTG CORP 0.000 5,749,174.390 5,749,174.390 3133TKH94 0000000000 FEDERAL HOME LN MTG CORP 2,187,125.080 0.000 2,187,125.080 3133TP4U0 0000000000 FEDERAL HOME LN MTG CORP 0.000 3,314,347.190 3,314,347.190 3134014H1 0000000000 FHLMC CORP PC GROUP NO: 0.000 101,032.830 101,032.830 313401DV0 0000000000 FHLMC CORP PC GROUP NO: 0.000 24,323.402 24,323.402 313401GP0 0000000000 FHLMC CORP PC GROUP NO: 0.000 70,265.280 70,265.280 313401JZ5 0000000000 FHLMC CORP PC GROUP NO: 3,413.440 0.000 3,413.440 31340AFR7 0000000000 FHLMC CORP PC GROUP NO: 0.000 17,035.830 17,035.830 31340VVZ5 0000000000 FHLMC CORP PC GROUP NO: 0.000 40,055.180 40,055.180 31340YRF8 0000000000 FEDERAL HOME LN MTG CORP 0.000 130,745.240 130,745.240 313421EC9 0000000000 FHLMC CORP PC GROUP NO: 0.000 974.090 974.090 31344WP37 0000000000 FHLMC CORP PC GROUP NO: 0.000 58,413.800 58,413.800 31353WHS9 0000000000 FHLMC CORP PC GROUP NO: 0.000 46,607.610 46,607.610 313589TY9 0000000000 FEDERAL NATL MTG ASSN DIS 9,600,000.000 0.000 9,600,000.000 31358MJY1 0000000000 FEDERAL NATL MTG ASSN GTD 0.000 78,655.510 78,655.510 31358SSW2 0000000000 FEDERAL NATL MTG ASSN GTD 3,927,590.160 0.000 3,927,590.160 31359KAD9 0000000000 FEDERAL HOME LOAN MORTGAG 0.000 40,453.240 40,453.240 31359MFP3 0000000000 FEDERAL NATL MTG ASSN CON 0.000 2,625,000.000 2,625,000.000 31359MGK3 0000000000 FEDERAL NATL MTG ASSN 0.000 1,250,000.000 1,250,000.000 31359QYV0 0000000000 FEDERAL NATL MTG ASSN GTD 4,168,550.270 0.000 4,168,550.270 =================================================================================================================================== MSIF Fixed MSIFT Investment Income III Grade Fixed Income Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description (f) Market Value Market Value Market Value % of Net Assets ------------ -------------------- ------------ ------------------ ------------------ --------------- 313385TZ9 0000000000 FHLB DISC NT 0.00 8,498,430.42 8,498,430.42 1.65% 313397RG8 0000000000 FEDERAL HOME LN MTG CORP 8,999,490.00 0.00 8,999,490.00 1.74% 313397RN3 0000000000 FEDERAL HOME LN MTG CORP 11,995,566.67 0.00 11,995,566.67 2.33% 3133T4M78 0000000000 FEDERAL HOME LN MTG CORP 230,723.23 0.00 230,723.23 0.04% 3133T5AK9 0000000000 FEDERAL HOME LN MTG CORP 0.00 408,461.19 408,461.19 0.08% 3133T87K7 0000000000 FEDERAL HOME LN MTG CORP 0.00 1,044,480.00 1,044,480.00 0.20% 3133TAF72 0000000000 FEDERAL HOME LN MTG CORP 0.00 168,450.81 168,450.81 0.03% 3133TKH94 0000000000 FEDERAL HOME LN MTG CORP 250,863.25 0.00 250,863.25 0.05% 3133TP4U0 0000000000 FEDERAL HOME LN MTG CORP 0.00 173,340.36 173,340.36 0.03% 3134014H1 0000000000 FHLMC CORP PC GROUP NO: 0.00 113,227.49 113,227.49 0.02% 313401DV0 0000000000 FHLMC CORP PC GROUP NO: 0.00 25,534.97 25,534.97 0.00% 313401GP0 0000000000 FHLMC CORP PC GROUP NO: 0.00 77,572.87 77,572.87 0.02% 313401JZ5 0000000000 FHLMC CORP PC GROUP NO: 3,923.95 0.00 3,923.95 0.00% 31340AFR7 0000000000 FHLMC CORP PC GROUP NO: 0.00 19,087.28 19,087.28 0.00% 31340VVZ5 0000000000 FHLMC CORP PC GROUP NO: 0.00 44,848.98 44,848.98 0.01% 31340YRF8 0000000000 FEDERAL HOME LN MTG CORP 0.00 137,810.71 137,810.71 0.03% 313421EC9 0000000000 FHLMC CORP PC GROUP NO: 0.00 1,088.92 1,088.92 0.00% 31344WP37 0000000000 FHLMC CORP PC GROUP NO: 0.00 65,404.76 65,404.76 0.01% 31353WHS9 0000000000 FHLMC CORP PC GROUP NO: 0.00 51,449.67 51,449.67 0.01% 313589TY9 0000000000 FEDERAL NATL MTG ASSN DIS 9,571,008.00 0.00 9,571,008.00 1.86% 31358MJY1 0000000000 FEDERAL NATL MTG ASSN GTD 0.00 78,605.96 78,605.96 0.02% 31358SSW2 0000000000 FEDERAL NATL MTG ASSN GTD 264,719.58 0.00 264,719.58 0.05% 31359KAD9 0000000000 FEDERAL HOME LOAN MORTGAG 0.00 30,793.01 30,793.01 0.01% 31359MFP3 0000000000 FEDERAL NATL MTG ASSN CON 0.00 2,929,752.00 2,929,752.00 0.57% 31359MGK3 0000000000 FEDERAL NATL MTG ASSN 0.00 1,288,898.75 1,288,898.75 0.25% 31359QYV0 0000000000 FEDERAL NATL MTG ASSN GTD 355,577.34 0.00 355,577.34 0.07% 7
49763rd Page of 98TOC1stPreviousNextBottomJust 63rd
[Enlarge/Download Table] =================================================================================================================================== MSIFT Investment MSIF Fixed Income III Grade Fixed Income Pro-Forma Portfolio Portfolio Combined Cusip Number Security Description (f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ -------------------- --------------------- ------------------ ---------------- 31359S5K2 0000000000 FNRA CL024FA R01F024 0.000 90,017.670 90,017.670 31359WPN5 0000000000 FEDERAL NATL MTG ASSN GTD 0.000 5,836,356.950 5,836,356.950 313606UE3 0000000000 FNMA PASS THRU CTF POOL N 0.000 65,038.260 65,038.260 313608FP1 0000000000 FNMA PASS THRU CTF POOL N 0.000 19,913.240 19,913.240 3136185V8 0000000000 FNMA PASS THRU CTF POOL N 0.000 24,630.410 24,630.410 31362TBU6 0000000000 FNMA PASS THRU CTF POOL N 0.000 488,925.180 488,925.180 31364HN86 0000000000 FNMA PASS THRU CTF ST POO 0.000 801,583.190 801,583.190 31364HS65 0000000000 FEDERAL NATL MTG ASSN STR 0.000 1,744,829.640 1,744,829.640 31364JN82 0000000000 FEDERAL NATL MTG ASSN STR 0.000 4,710,579.710 4,710,579.710 31364JT29 0000000000 FNMA STRIPPED MTG BACKED 0.000 755,156.290 755,156.290 31369JX52 0000000000 FNMA PASS THRU CTF POOL N 0.000 19,741.950 19,741.950 3136FAEN6 0000000000 FNMA PASS THRU CTF ST 7,434,531.790 7,403,628.140 14,838,159.930 3136FAEP1 0000000000 FNMA PASS THRU CTF ST 8,321,185.640 7,403,628.140 15,724,813.780 31371J6H2 0000000000 FNMA PASS THRU CTF POOL N 0.000 388,357.650 388,357.650 31371JJL9 0000000000 FNMA PASS THRU CTF POOL N 0.000 1,102,001.580 1,102,001.580 31371JNQ3 0000000000 FNMA PASS THRU CTF POOL N 55,629.240 2,187,897.250 2,243,526.490 31371JSE5 0000000000 FNMA PASS THRU CTF POOL N 0.000 195,910.550 195,910.550 31371JUX0 0000000000 FNMA PASS THRU CTF POOL N 0.000 455,978.490 455,978.490 31371JYS7 0000000000 FNMA PASS THRU CTF POOL N 0.000 1,253,853.080 1,253,853.080 31371KBQ3 0000000000 FNMA PASS THRU CTF POOL N 2,247,879.940 0.000 2,247,879.940 31371KEZ0 0000000000 FNMA PASS THRU CTF POOL N 0.000 82,239.860 82,239.860 31373TWS5 0000000000 FNMA PASS THRU CTF POOL N 0.000 205,317.920 205,317.920 31373UE37 0000000000 FNMA PASS THRU CTF POOL N 0.000 209,279.230 209,279.230 31374GC96 0000000000 FNMA PASS THRU CTF POOL N 1,052,319.277 0.000 1,052,319.277 =================================================================================================================================== MSIF Fixed MSIFT Investment Income III Grade Fixed Income Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description (f) Market Value Market Value Market Value % of Net Assets ------------ -------------------- ------------ ------------------ ------------------ --------------- 31359S5K2 0000000000 FNRA CL024FA R01F024 0.00 89,888.94 89,888.94 0.02% 31359WPN5 0000000000 FEDERAL NATL MTG ASSN GTD 0.00 469,243.10 469,243.10 0.09% 313606UE3 0000000000 FNMA PASS THRU CTF POOL N 0.00 74,048.01 74,048.01 0.01% 313608FP1 0000000000 FNMA PASS THRU CTF POOL N 0.00 22,701.69 22,701.69 0.00% 3136185V8 0000000000 FNMA PASS THRU CTF POOL N 0.00 27,917.83 27,917.83 0.01% 31362TBU6 0000000000 FNMA PASS THRU CTF POOL N 0.00 519,024.39 519,024.39 0.10% 31364HN86 0000000000 FNMA PASS THRU CTF ST POO 0.00 177,350.28 177,350.28 0.03% 31364HS65 0000000000 FEDERAL NATL MTG ASSN STR 0.00 396,669.57 396,669.57 0.08% 31364JN82 0000000000 FEDERAL NATL MTG ASSN STR 0.00 886,907.95 886,907.95 0.17% 31364JT29 0000000000 FNMA STRIPPED MTG BACKED 0.00 141,236.88 141,236.88 0.03% 31369JX52 0000000000 FNMA PASS THRU CTF POOL N 0.00 22,149.28 22,149.28 0.00% 3136FAEN6 0000000000 FNMA PASS THRU CTF ST 6,513,318.96 6,368,230.74 12,881,549.70 2.50% 3136FAEP1 0000000000 FNMA PASS THRU CTF ST 1,452,296.53 0.00 1,452,296.53 0.28% 31371J6H2 0000000000 FNMA PASS THRU CTF POOL N 0.00 411,294.83 411,294.83 0.08% 31371JJL9 0000000000 FNMA PASS THRU CTF POOL N 0.00 1,167,088.00 1,167,088.00 0.23% 31371JNQ3 0000000000 FNMA PASS THRU CTF POOL N 58,966.99 2,317,118.84 2,376,085.83 0.46% 31371JSE5 0000000000 FNMA PASS THRU CTF POOL N 0.00 207,481.42 207,481.42 0.04% 31371JUX0 0000000000 FNMA PASS THRU CTF POOL N 0.00 482,909.49 482,909.49 0.09% 31371JYS7 0000000000 FNMA PASS THRU CTF POOL N 0.00 1,327,908.15 1,327,908.15 0.26% 31371KBQ3 0000000000 FNMA PASS THRU CTF POOL N 2,353,109.94 0.00 2,353,109.94 0.46% 31371KEZ0 0000000000 FNMA PASS THRU CTF POOL N 0.00 84,633.62 84,633.62 0.02% 31373TWS5 0000000000 FNMA PASS THRU CTF POOL N 0.00 227,580.54 227,580.54 0.04% 31373UE37 0000000000 FNMA PASS THRU CTF POOL N 0.00 240,719.25 240,719.25 0.05% 31374GC96 0000000000 FNMA PASS THRU CTF POOL N 1,104,079.71 0.00 1,104,079.71 0.21% 8
49764th Page of 98TOC1stPreviousNextBottomJust 64th
[Enlarge/Download Table] =================================================================================================================================== MSIFT Investment MSIF Fixed Income III Grade Fixed Income Pro-Forma Portfolio Portfolio Combined Cusip Number Security Description (f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ -------------------- --------------------- ------------------ ---------------- 31374S2E0 0000000000 FNMA PASS THRU CTF POOL N 0.000 136,556.320 136,556.320 31374S6B2 0000000000 FNMA PASS THRU CTF POOL N 0.000 998,783.700 998,783.700 31374TBA6 0000000000 FNMA PASS THRU CTF POOL N 0.000 644,930.390 644,930.390 31376MJE3 0000000000 FNMA PASS THRU CTF POOL N 0.000 189,725.140 189,725.140 31378S2M8 0000000000 FNMA PASS THRU CTF POOL N 0.000 47,328.950 47,328.950 31379BZB2 0000000000 FNMA PASS THRU CTF POOL N 22,137.516 0.000 22,137.516 31379RFR4 0000000000 FNMA PASS THRU CTF POOL N 0.000 773,864.790 773,864.790 31384NEC0 0000000000 FNMA PASS THRU CTF POOL N 0.000 0.010 0.010 31384NUW8 0000000000 FNMA PASS THRU CTF POOL N 0.000 0.010 0.010 31384TAQ0 0000000000 FNMA PASS THRU CTF POOL N 0.000 440,902.880 440,902.880 31384TSM0 0000000000 FNMA PASS THRU CTF POOL N 116,971.780 0.000 116,971.780 31384V2V3 0000000000 FNMA PASS THRU CTF POOL N 0.000 715,725.180 715,725.180 31384VNL2 0000000000 FNMA PASS THRU CTF POOL N 0.000 0.010 0.010 31384VT36 0000000000 FNMA PASS THRU CTF POOL N 485,838.055 0.000 485,838.055 31384VVZ2 0000000000 FNMA PASS THRU CTF POOL N 3,401,900.421 131,744.830 3,533,645.251 31384VY89 0000000000 FNMA PASS THRU CTF POOL N 0.000 316,652.930 316,652.930 31384VZD7 0000000000 FNMA PASS THRU CTF POOL N 1,919,379.693 0.000 1,919,379.693 31384WD72 0000000000 FNMA PASS THRU CTF POOL N 0.000 499,444.260 499,444.260 31384WLA6 0000000000 FNMA PASS THRU CTF POOL N 0.000 0.010 0.010 31384WXN5 0000000000 FNMA PASS THRU CTF POOL N 0.000 12,679.740 12,679.740 31384XN46 0000000000 FNMA PASS THRU CTF POOL N 35,481.738 0.000 35,481.738 31384XZK7 0000000000 FNMA PASS THRU CTF POOL N 24,044.184 0.000 24,044.184 31384YLS3 0000000000 FNMA PASS THRU CTF POOL N 52,205.133 0.000 52,205.133 31384YPR1 0000000000 FNMA PASS THRU CTF POOL N 14,207.038 0.000 14,207.038 31384YQV1 0000000000 FNMA PASS THRU CTF POOL N 47,718.593 0.000 47,718.593 =================================================================================================================================== MSIF Fixed MSIFT Investment Income III Grade Fixed Income Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description (f) Market Value Market Value Market Value % of Net Assets ------------ -------------------- ------------ ------------------ ------------------ --------------- 31374S2E0 0000000000 FNMA PASS THRU CTF POOL N 0.00 153,422.39 153,422.39 0.03% 31374S6B2 0000000000 FNMA PASS THRU CTF POOL N 0.00 1,093,108.83 1,093,108.83 0.21% 31374TBA6 0000000000 FNMA PASS THRU CTF POOL N 0.00 714,666.71 714,666.71 0.14% 31376MJE3 0000000000 FNMA PASS THRU CTF POOL N 0.00 213,169.48 213,169.48 0.04% 31378S2M8 0000000000 FNMA PASS THRU CTF POOL N 0.00 52,471.24 52,471.24 0.01% 31379BZB2 0000000000 FNMA PASS THRU CTF POOL N 23,465.77 0.00 23,465.77 0.00% 31379RFR4 0000000000 FNMA PASS THRU CTF POOL N 0.00 879,334.82 879,334.82 0.17% 31384NEC0 0000000000 FNMA PASS THRU CTF POOL N 0.00 0.01 0.01 0.00% 31384NUW8 0000000000 FNMA PASS THRU CTF POOL N 0.00 0.01 0.01 0.00% 31384TAQ0 0000000000 FNMA PASS THRU CTF POOL N 0.00 466,943.49 466,943.49 0.09% 31384TSM0 0000000000 FNMA PASS THRU CTF POOL N 122,447.58 0.00 122,447.58 0.02% 31384V2V3 0000000000 FNMA PASS THRU CTF POOL N 0.00 757,997.34 757,997.34 0.15% 31384VNL2 0000000000 FNMA PASS THRU CTF POOL N 0.00 0.01 0.01 0.00% 31384VT36 0000000000 FNMA PASS THRU CTF POOL N 514,988.34 0.00 514,988.34 0.10% 31384VVZ2 0000000000 FNMA PASS THRU CTF POOL N 3,606,014.45 139,525.94 3,745,540.39 0.73% 31384VY89 0000000000 FNMA PASS THRU CTF POOL N 0.00 335,355.09 335,355.09 0.07% 31384VZD7 0000000000 FNMA PASS THRU CTF POOL N 2,034,542.47 0.00 2,034,542.47 0.39% 31384WD72 0000000000 FNMA PASS THRU CTF POOL N 0.00 528,942.44 528,942.44 0.10% 31384WLA6 0000000000 FNMA PASS THRU CTF POOL N 0.00 0.01 0.01 0.00% 31384WXN5 0000000000 FNMA PASS THRU CTF POOL N 0.00 13,428.63 13,428.63 0.00% 31384XN46 0000000000 FNMA PASS THRU CTF POOL N 37,610.64 0.00 37,610.64 0.01% 31384XZK7 0000000000 FNMA PASS THRU CTF POOL N 25,486.84 0.00 25,486.84 0.00% 31384YLS3 0000000000 FNMA PASS THRU CTF POOL N 55,337.44 0.00 55,337.44 0.01% 31384YPR1 0000000000 FNMA PASS THRU CTF POOL N 15,059.46 0.00 15,059.46 0.00% 31384YQV1 0000000000 FNMA PASS THRU CTF POOL N 50,581.71 0.00 50,581.71 0.01% 9
49765th Page of 98TOC1stPreviousNextBottomJust 65th
[Enlarge/Download Table] =================================================================================================================================== MSIFT Investment MSIF Fixed Income III Grade Fixed Income Pro-Forma Portfolio Portfolio Combined Cusip Number Security Description (f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ -------------------- --------------------- ------------------ ---------------- 31385AGE1 0000000000 FNMA PASS THRU CTF POOL N 7,780.600 0.000 7,780.600 31385AJZ1 0000000000 FNMA PASS THRU CTF POOL N 0.000 39,212.990 39,212.990 31385AUL9 0000000000 FNMA PASS THRU CTF POOL N 0.000 0.010 0.010 31385AUM7 0000000000 FNMA PASS THRU CTF POOL N 0.000 114,100.570 114,100.570 31385AZK6 0000000000 FNMA PASS THRU CTF POOL N 0.000 0.010 0.010 31385DL25 0000000000 FNMA PASS THRU CTF POOL N 13,202.058 0.000 13,202.058 31385DNE7 0000000000 FNMA PASS THRU CTF POOL N 18,588.483 0.000 18,588.483 31385DQM6 0000000000 FNMA PASS THRU CTF POOL N 30,780.036 0.000 30,780.036 31385E6G9 0000000000 FNMA PASS THRU CTF POOL N 12,768.520 0.000 12,768.520 31385EPT0 0000000000 FNMA PASS THRU CTF POOL N 0.000 0.010 0.010 31385ERN1 0000000000 FNMA PASS THRU CTF POOL N 104,410.440 0.000 104,410.440 31385F4N3 0000000000 FNMA PASS THRU CTF POOL N 117,482.450 0.000 117,482.450 31385F5T9 0000000000 FNMA PASS THRU CTF POOL N 0.000 42,178.210 42,178.210 31385FGV2 0000000000 FNMA PASS THRU CTF POOL N 22,823.403 0.000 22,823.403 31385FLP9 0000000000 FNMA PASS THRU CTF POOL N 0.000 0.010 0.010 31385FLV6 0000000000 FNMA PASS THRU CTF POOL N 30,550.506 0.000 30,550.506 31385GFR0 0000000000 FNMA PASS THRU CTF POOL N 0.000 0.010 0.010 31385GNB6 0000000000 FNMA PASS THRU CTF POOL N 0.000 433,325.310 433,325.310 31385GX74 0000000000 FNMA PASS THRU CTF POOL 27,045.792 0.000 27,045.792 31385HLQ3 0000000000 FNMA PASS THRU CTF POOL N 0.000 0.010 0.010 31385HLW0 0000000000 FNMA PASS THRU CTF POOL N 0.000 80,292.480 80,292.480 =================================================================================================================================== MSIF Fixed MSIFT Investment Income III Grade Fixed Income Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description (f) Market Value Market Value Market Value % of Net Assets ------------ -------------------- ------------ ------------------ ------------------ --------------- 31385AGE1 0000000000 FNMA PASS THRU CTF POOL N 8,247.44 0.00 8,247.44 0.00% 31385AJZ1 0000000000 FNMA PASS THRU CTF POOL N 0.00 41,528.99 41,528.99 0.01% 31385AUL9 0000000000 FNMA PASS THRU CTF POOL N 0.00 0.01 0.01 0.00% 31385AUM7 0000000000 FNMA PASS THRU CTF POOL N 0.00 120,839.58 120,839.58 0.02% 31385AZK6 0000000000 FNMA PASS THRU CTF POOL N 0.00 0.01 0.01 0.00% 31385DL25 0000000000 FNMA PASS THRU CTF POOL N 13,994.18 0.00 13,994.18 0.00% 31385DNE7 0000000000 FNMA PASS THRU CTF POOL N 19,703.79 0.00 19,703.79 0.00% 31385DQM6 0000000000 FNMA PASS THRU CTF POOL N 32,626.84 0.00 32,626.84 0.01% 31385E6G9 0000000000 FNMA PASS THRU CTF POOL N 13,534.63 0.00 13,534.63 0.00% 31385EPT0 0000000000 FNMA PASS THRU CTF POOL N 0.00 0.01 0.01 0.00% 31385ERN1 0000000000 FNMA PASS THRU CTF POOL N 110,675.07 0.00 110,675.07 0.02% 31385F4N3 0000000000 FNMA PASS THRU CTF POOL N 122,982.16 0.00 122,982.16 0.02% 31385F5T9 0000000000 FNMA PASS THRU CTF POOL N 0.00 44,669.34 44,669.34 0.01% 31385FGV2 0000000000 FNMA PASS THRU CTF POOL N 24,192.81 0.00 24,192.81 0.00% 31385FLP9 0000000000 FNMA PASS THRU CTF POOL N 0.00 0.01 0.01 0.00% 31385FLV6 0000000000 FNMA PASS THRU CTF POOL N 32,383.54 0.00 32,383.54 0.01% 31385GFR0 0000000000 FNMA PASS THRU CTF POOL N 0.00 0.01 0.01 0.00% 31385GNB6 0000000000 FNMA PASS THRU CTF POOL N 0.00 458,918.37 458,918.37 0.09% 31385GX74 0000000000 FNMA PASS THRU CTF POOL 28,668.54 0.00 28,668.54 0.01% 31385HLQ3 0000000000 FNMA PASS THRU CTF POOL N 0.00 0.01 0.01 0.00% 31385HLW0 0000000000 FNMA PASS THRU CTF POOL N 0.00 85,034.71 85,034.71 0.02% 10
49766th Page of 98TOC1stPreviousNextBottomJust 66th
[Enlarge/Download Table] =================================================================================================================================== MSIFT Investment MSIF Fixed Income III Grade Fixed Income Pro-Forma Portfolio Portfolio Combined Cusip Number Security Description (f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ -------------------- --------------------- ------------------ ---------------- 31385HV82 0000000000 FNMA PASS THRU CTF POOL N 991,670.230 0.000 991,670.230 31385JUW6 0000000000 FNMA PASS THRU CTF POOL N 18,660.487 0.000 18,660.487 31385K3Q6 0000000000 FNMA PASS THRU CTF POOL N 0.000 0.010 0.010 31385KF83 0000000000 FNMA PASS THRU CTF POOL N 0.000 117,424.930 117,424.930 31385KGQ2 0000000000 FNMA PASS THRU CTF POOL N 0.000 165,964.870 165,964.870 31385KKK0 0000000000 FNMA PASS THRU CTF POOL N 0.000 297,060.450 297,060.450 31385KPS8 0000000000 FNMA PASS THRU CTF POOL N 0.000 40,761.640 40,761.640 31385NFP9 0000000000 FNMA PASS THRU CTF POOL N 0.000 78,673.080 78,673.080 31385P5Y6 0000000000 FNMA PASS THRU CTF POOL N 1,451,626.160 569,994.440 2,021,620.600 31385PS96 0000000000 FNMA PASS THRU CTF POOL N 0.000 844,148.140 844,148.140 31385QDE9 0000000000 FNMA PASS THRU CTF POOL N 30,457.390 0.000 30,457.390 31385RFN5 0000000000 FNMA PASS THRU CTF POOL N 28,128.910 0.000 28,128.910 31385UE90 0000000000 FNMA PASS THRU CTF POOL N 0.000 909,466.610 909,466.610 31385VBN0 0000000000 FNMA PASS THRU CTF POOL N 0.000 738,986.230 738,986.230 31385XVG9 0000000000 FNMA PASS THRU CTF POOL N 0.000 300,509.400 300,509.400 31385YG66 0000000000 FNMA PASS THRU CTF POOL N 0.000 166,193.900 166,193.900 31385YJJ5 0000000000 FNMA PASS THRU CTF POOL N 0.000 132,345.450 132,345.450 31386DUY4 0000000000 FNMA PASS THRU CTF POOL N 0.000 133,535.140 133,535.140 31386EG85 0000000000 FNMA PASS THRU CTF POOL N 0.000 456,376.670 456,376.670 31386EPR3 0000000000 FNMA PASS THRU CTF POOL N 0.000 909,338.670 909,338.670 31386GB85 0000000000 FNMA PASS THRU CTF POOL N 0.000 407,685.320 407,685.320 31386GBX0 0000000000 FNMA PASS THRU CTF POOL N 0.000 953,663.470 953,663.470 31386HCY5 0000000000 FNMA PASS THRU CTF POOL N 0.000 0.010 0.010 31386HKM2 0000000000 FNMA PASS THRU CTF POOL N 0.000 770,393.420 770,393.420 31386HPU9 0000000000 FNMA PASS THRU CTF POOL N 0.000 473,505.360 473,505.360 =================================================================================================================================== MSIF Fixed MSIFT Investment Income III Grade Fixed Income Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description (f) Market Value Market Value Market Value % of Net Assets ------------ -------------------- ------------ ------------------ ------------------ --------------- 31385HV82 0000000000 FNMA PASS THRU CTF POOL N 1,038,093.29 0.00 1,038,093.29 0.20% 31385JUW6 0000000000 FNMA PASS THRU CTF POOL N 19,780.12 0.00 19,780.12 0.00% 31385K3Q6 0000000000 FNMA PASS THRU CTF POOL N 0.00 0.01 0.01 0.00% 31385KF83 0000000000 FNMA PASS THRU CTF POOL N 0.00 124,360.28 124,360.28 0.02% 31385KGQ2 0000000000 FNMA PASS THRU CTF POOL N 0.00 175,767.09 175,767.09 0.03% 31385KKK0 0000000000 FNMA PASS THRU CTF POOL N 0.00 314,605.43 314,605.43 0.06% 31385KPS8 0000000000 FNMA PASS THRU CTF POOL N 0.00 43,169.10 43,169.10 0.01% 31385NFP9 0000000000 FNMA PASS THRU CTF POOL N 0.00 83,319.67 83,319.67 0.02% 31385P5Y6 0000000000 FNMA PASS THRU CTF POOL N 1,451,626.16 690,757.02 2,142,383.18 0.42% 31385PS96 0000000000 FNMA PASS THRU CTF POOL N 0.00 894,005.22 894,005.22 0.17% 31385QDE9 0000000000 FNMA PASS THRU CTF POOL N 32,284.83 0.00 32,284.83 0.01% 31385RFN5 0000000000 FNMA PASS THRU CTF POOL N 29,816.64 0.00 29,816.64 0.01% 31385UE90 0000000000 FNMA PASS THRU CTF POOL N 0.00 963,181.53 963,181.53 0.19% 31385VBN0 0000000000 FNMA PASS THRU CTF POOL N 0.00 782,632.23 782,632.23 0.15% 31385XVG9 0000000000 FNMA PASS THRU CTF POOL N 0.00 318,258.09 318,258.09 0.06% 31385YG66 0000000000 FNMA PASS THRU CTF POOL N 0.00 176,009.64 176,009.64 0.03% 31385YJJ5 0000000000 FNMA PASS THRU CTF POOL N 0.00 140,162.04 140,162.04 0.03% 31386DUY4 0000000000 FNMA PASS THRU CTF POOL N 0.00 141,421.99 141,421.99 0.03% 31386EG85 0000000000 FNMA PASS THRU CTF POOL N 0.00 483,331.19 483,331.19 0.09% 31386EPR3 0000000000 FNMA PASS THRU CTF POOL N 0.00 950,786.33 950,786.33 0.18% 31386GB85 0000000000 FNMA PASS THRU CTF POOL N 0.00 419,551.82 419,551.82 0.08% 31386GBX0 0000000000 FNMA PASS THRU CTF POOL N 0.00 997,131.45 997,131.45 0.19% 31386HCY5 0000000000 FNMA PASS THRU CTF POOL N 0.00 0.01 0.01 0.00% 31386HKM2 0000000000 FNMA PASS THRU CTF POOL N 0.00 805,507.95 805,507.95 0.16% 31386HPU9 0000000000 FNMA PASS THRU CTF POOL N 0.00 501,471.53 501,471.53 0.10% 11
49767th Page of 98TOC1stPreviousNextBottomJust 67th
[Enlarge/Download Table] =================================================================================================================================== MSIFT Investment MSIF Fixed Income III Grade Fixed Income Pro-Forma Portfolio Portfolio Combined Cusip Number Security Description (f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ -------------------- --------------------- ------------------ ---------------- 31386JUS4 0000000000 FNMA PASS THRU CTF POOL N 0.000 40,358.000 40,358.000 31386M3U2 0000000000 FNMA PASS THRU CTF POOL N 0.000 729,844.020 729,844.020 31386MEF3 0000000000 FNMA PASS THRU CTF POOL N 0.000 311,685.430 311,685.430 31386NDF2 0000000000 FNMA PASS THRU CTF POOL N 0.000 20,634.730 20,634.730 31386PQA4 0000000000 FNMA PASS THRU CTF POOL N 0.000 1,921,782.050 1,921,782.050 31386QDD0 0000000000 FNMA PASS THRU CTF POOL N 427,735.140 0.000 427,735.140 31386SUU9 0000000000 FNMA PASS THRU CTF POOL N 0.000 597,393.790 597,393.790 31386UL91 0000000000 FNMA PASS THRU CTF POOL N 0.000 2,691,470.620 2,691,470.620 31386XAD8 0000000000 FNMA PASS THRU CTF POOL N 0.000 647,246.780 647,246.780 31386XBP0 0000000000 FNMA PASS THRU CTF POOL N 0.000 72,399.070 72,399.070 31386XH33 0000000000 FNMA PASS THRU CTF POOL N 0.000 907,481.790 907,481.790 31387F3U6 0000000000 FNMA PASS THRU CTF POOL N 0.000 611,453.690 611,453.690 31387H2J8 0000000000 FNMA PASS THRU CTF POOL N 0.000 537,288.440 537,288.440 31387NRJ8 0000000000 FNMA PASS THRU CTF POOL N 0.000 430,685.180 430,685.180 31387QRH5 0000000000 FNMA PASS THRU CTF POOL N 0.000 331,327.700 331,327.700 31387XN76 0000000000 FNMA PASS THRU CTF POOL N 0.000 595,360.120 595,360.120 31388A4W1 0000000000 FNMA PASS THRU CTF POOL N 109,835.510 0.000 109,835.510 31388CZZ6 0000000000 FNMA PASS THRU CTF POOL N 0.000 289,715.400 289,715.400 31388JTE5 0000000000 FNMA PASS THRU CTF POOL N 0.000 350,861.980 350,861.980 31388JZ73 0000000000 FNMA PASS THRU CTF POOL N 0.000 483,858.030 483,858.030 31410HAK7 0000000000 FEDERATED DEPT STORES INC 0.000 170,000.000 170,000.000 31410HAP6 0000000000 CREDIT SUISSE FIRST BOSTO 585,000.000 0.000 585,000.000 31410HAQ4 0000000000 FEDERATED DEPT STORES INC 0.000 950,000.000 950,000.000 31410HAT8 0000000000 FEDERATED DEPT STORES 215,000.000 0.000 215,000.000 320185AA9 0000000000 FIRST FED SVGS & LN ASSN 0.000 (3,327.390) (3,327.390) 320500AA9 0000000000 FIRST HAWAIIAN BK SECD NT 0.000 1,650,000.000 1,650,000.000 336211AG2 0000000000 FIRST SEC AUTO GRANTOR TR 0.000 170,291.920 170,291.920 337366AB4 0000000000 FIRST UN NATL BANK CHASE 0.000 1,750,000.000 1,750,000.000 338915AL5 0000000000 FLEET FINL GROUP INC NEW 1,000,000.000 0.000 1,000,000.000 =================================================================================================================================== MSIF Fixed MSIFT Investment Income III Grade Fixed Income Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description (f) Market Value Market Value Market Value % of Net Assets ------------ -------------------- ------------ ------------------ ------------------ --------------- 31386JUS4 0000000000 FNMA PASS THRU CTF POOL N 0.00 41,532.70 41,532.70 0.01% 31386M3U2 0000000000 FNMA PASS THRU CTF POOL N 0.00 772,950.07 772,950.07 0.15% 31386MEF3 0000000000 FNMA PASS THRU CTF POOL N 0.00 330,094.19 330,094.19 0.06% 31386NDF2 0000000000 FNMA PASS THRU CTF POOL N 0.00 21,235.35 21,235.35 0.00% 31386PQA4 0000000000 FNMA PASS THRU CTF POOL N 0.00 2,035,286.34 2,035,286.34 0.39% 31386QDD0 0000000000 FNMA PASS THRU CTF POOL N 453,399.25 0.00 453,399.25 0.09% 31386SUU9 0000000000 FNMA PASS THRU CTF POOL N 0.00 614,782.13 614,782.13 0.12% 31386UL91 0000000000 FNMA PASS THRU CTF POOL N 0.00 2,850,434.26 2,850,434.26 0.55% 31386XAD8 0000000000 FNMA PASS THRU CTF POOL N 0.00 666,086.19 666,086.19 0.13% 31386XBP0 0000000000 FNMA PASS THRU CTF POOL N 0.00 76,675.10 76,675.10 0.01% 31386XH33 0000000000 FNMA PASS THRU CTF POOL N 0.00 933,895.86 933,895.86 0.18% 31387F3U6 0000000000 FNMA PASS THRU CTF POOL N 0.00 629,251.27 629,251.27 0.12% 31387H2J8 0000000000 FNMA PASS THRU CTF POOL N 0.00 561,778.05 561,778.05 0.11% 31387NRJ8 0000000000 FNMA PASS THRU CTF POOL N 0.00 443,221.13 443,221.13 0.09% 31387QRH5 0000000000 FNMA PASS THRU CTF POOL N 0.00 340,971.66 340,971.66 0.07% 31387XN76 0000000000 FNMA PASS THRU CTF POOL N 0.00 612,689.27 612,689.27 0.12% 31388A4W1 0000000000 FNMA PASS THRU CTF POOL N 114,977.24 0.00 114,977.24 0.02% 31388CZZ6 0000000000 FNMA PASS THRU CTF POOL N 0.00 298,148.15 298,148.15 0.06% 31388JTE5 0000000000 FNMA PASS THRU CTF POOL N 0.00 361,074.52 361,074.52 0.07% 31388JZ73 0000000000 FNMA PASS THRU CTF POOL N 0.00 497,941.69 497,941.69 0.10% 31410HAK7 0000000000 FEDERATED DEPT STORES INC 0.00 158,697.89 158,697.89 0.03% 31410HAP6 0000000000 CREDIT SUISSE FIRST BOSTO 570,142.17 0.00 570,142.17 0.11% 31410HAQ4 0000000000 FEDERATED DEPT STORES INC 0.00 875,204.60 875,204.60 0.17% 31410HAT8 0000000000 FEDERATED DEPT STORES 214,294.80 0.00 214,294.80 0.04% 320185AA9 0000000000 FIRST FED SVGS & LN ASSN 0.00 (3,327.39) (3,327.39) 0.00% 320500AA9 0000000000 FIRST HAWAIIAN BK SECD NT 0.00 1,723,824.30 1,723,824.30 0.33% 336211AG2 0000000000 FIRST SEC AUTO GRANTOR TR 0.00 170,612.44 170,612.44 0.03% 337366AB4 0000000000 FIRST UN NATL BANK CHASE 0.00 1,784,930.00 1,784,930.00 0.35% 338915AL5 0000000000 FLEET FINL GROUP INC NEW 1,012,925.00 0.00 1,012,925.00 0.20% 12
49768th Page of 98TOC1stPreviousNextBottomJust 68th
[Enlarge/Download Table] =================================================================================================================================== MSIFT Investment MSIF Fixed Income III Grade Fixed Income Pro-Forma Portfolio Portfolio Combined Cusip Number Security Description (f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ ------------------------ --------------------- ------------------ ---------------- 340903AD5 0000000000 FLORIDA RESIDENTIAL PPTY 0.000 900,000.000 900,000.000 343254AJ7 0000000000 FLORIDA WINDSTORM UNDERWR 600,000.000 1,720,000.000 2,320,000.000 34527REL3 0000000000 FORD CR AUTO OWNER TR 200 1,310,000.000 2,000,000.000 3,310,000.000 345370BY5 0000000000 FORD MTR CO DEL DEB 0.000 1,105,000.000 1,105,000.000 345370BZ2 0000000000 FORD MTR CO DEL BD 1,470,000.000 0.000 1,470,000.000 345397SM6 0000000000 FORD MOTOR CREDIT CO NOTE 555,000.000 0.000 555,000.000 361849AB8 0000000000 GMAC COML MTG SEC INC 0.000 2,083,344.120 2,083,344.120 361849DY5 0000000000 GMAC COML MTG SEC INC MTG 0.000 2,525,000.000 2,525,000.000 36185NDD9 0000000000 GMACM MTG LN TR 2000-J 109,866.700 0.000 109,866.700 36202BAL9 0000000000 GOVT NATL MTG ASSN II JUM 0.000 5,335.660 5,335.660 36202KR56 0000000000 GOVT NATL MTG ASSN II JUM 0.000 376,636.877 376,636.877 36202KR80 0000000000 GOVT NATL MTG ASSN II JUM 0.000 283,285.730 283,285.730 36202KRQ0 0000000000 GOVT NTL MTG ASSN POOL NO 0.000 977,417.600 977,417.600 36202KRU1 0000000000 GOVT NTL MTG ASSN POOL NO 0.000 161,394.850 161,394.850 36202KS89 0000000000 GOVT NATL MTG ASSN II JUM 0.000 297,828.410 297,828.410 36202KS97 0000000000 GOVT NATL MTG ASSN II JUM 0.000 280,901.010 280,901.010 36202KSG1 0000000000 GOVT NATL MTG ASSN II JUM 0.000 148,314.880 148,314.880 36202KSJ5 0000000000 GOVT NATL MTG ASSN II JUM 0.000 147,233.330 147,233.330 36202KSL0 0000000000 GOVT NATL MTG ASSN II JUM 0.000 427,185.440 427,185.440 36202KSR7 0000000000 GOVT NATL MTG ASSN II JUM 0.000 157,892.870 157,892.870 36202KSU0 0000000000 GOVT NATL MTG ASSN II JUM 0.000 524,201.970 524,201.970 36202KSW6 0000000000 GOVT NATL MTG ASSN II JUM 0.000 143,290.690 143,290.690 36202KSX4 0000000000 GOVT NATL MTG ASSN II JUM 0.000 132,470.780 132,470.780 =================================================================================================================================== MSIF Fixed MSIFT Investment Income III Grade Fixed Income Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description (f) Market Value Market Value Market Value % of Net Assets ------------ ------------------------ ------------ ------------------ ------------------ --------------- 340903AD5 0000000000 FLORIDA RESIDENTIAL PPTY 0.00 950,487.30 950,487.30 0.18% 343254AJ7 0000000000 FLORIDA WINDSTORM UNDERWR 615,241.80 1,751,981.68 2,367,223.48 0.46% 34527REL3 0000000000 FORD CR AUTO OWNER TR 200 1,353,432.00 2,065,602.40 3,419,034.40 0.66% 345370BY5 0000000000 FORD MTR CO DEL DEB 0.00 909,716.67 909,716.67 0.18% 345370BZ2 0000000000 FORD MTR CO DEL BD 1,179,733.80 0.00 1,179,733.80 0.23% 345397SM6 0000000000 FORD MOTOR CREDIT CO NOTE 546,628.94 0.00 546,628.94 0.11% 361849AB8 0000000000 GMAC COML MTG SEC INC 0.00 113,563.09 113,563.09 0.02% 361849DY5 0000000000 GMAC COML MTG SEC INC MTG 0.00 2,568,076.50 2,568,076.50 0.50% 36185NDD9 0000000000 GMACM MTG LN TR 2000-J 109,873.29 0.00 109,873.29 0.02% 36202BAL9 0000000000 GOVT NATL MTG ASSN II JUM 0.00 6,059.39 6,059.39 0.00% 36202KR56 0000000000 GOVT NATL MTG ASSN II JUM 0.00 382,241.23 382,241.23 0.07% 36202KR80 0000000000 GOVT NATL MTG ASSN II JUM 0.00 287,634.17 287,634.17 0.06% 36202KRQ0 0000000000 GOVT NTL MTG ASSN POOL NO 0.00 991,961.57 991,961.57 0.19% 36202KRU1 0000000000 GOVT NTL MTG ASSN POOL NO 0.00 163,864.19 163,864.19 0.03% 36202KS89 0000000000 GOVT NATL MTG ASSN II JUM 0.00 303,001.69 303,001.69 0.06% 36202KS97 0000000000 GOVT NATL MTG ASSN II JUM 0.00 285,839.25 285,839.25 0.06% 36202KSG1 0000000000 GOVT NATL MTG ASSN II JUM 0.00 150,830.30 150,830.30 0.03% 36202KSJ5 0000000000 GOVT NATL MTG ASSN II JUM 0.00 149,790.77 149,790.77 0.03% 36202KSL0 0000000000 GOVT NATL MTG ASSN II JUM 0.00 434,695.36 434,695.36 0.08% 36202KSR7 0000000000 GOVT NATL MTG ASSN II JUM 0.00 160,570.73 160,570.73 0.03% 36202KSU0 0000000000 GOVT NATL MTG ASSN II JUM 0.00 533,307.36 533,307.36 0.10% 36202KSW6 0000000000 GOVT NATL MTG ASSN II JUM 0.00 145,809.74 145,809.74 0.03% 36202KSX4 0000000000 GOVT NATL MTG ASSN II JUM 0.00 134,778.42 134,778.42 0.03% 13
49769th Page of 98TOC1stPreviousNextBottomJust 69th
[Enlarge/Download Table] =================================================================================================================================== MSIFT Investment MSIF Fixed Income III Grade Fixed Income Pro-Forma Portfolio Portfolio Combined Cusip Number Security Description (f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ ------------------------ --------------------- ------------------ ---------------- 36202KTU9 0000000000 GOVT NATL MTG ASSN II JUM 0.000 126,595.390 126,595.390 36202KTV7 0000000000 GOVT NATL MTG ASSN II JUM 0.000 166,936.210 166,936.210 36202KWQ4 0000000000 GOVT NATL MTG ASSN POOL N 0.000 1,198,933.540 1,198,933.540 362065GX6 0000000000 GOVT NATL MTG ASSN POOL N 0.000 4,387.780 4,387.780 362066AP7 0000000000 GOVT NATL MTG ASSN POOL N 0.000 7,025.590 7,025.590 362066X23 0000000000 GOVT NATL MTG ASSN POOL N 0.000 196,239.298 196,239.298 362067PL8 0000000000 GOVT NATL MTG ASSN POOL N 0.000 14,835.040 14,835.040 362067YK0 0000000000 GOVT NATL MTG ASSN POOL N 0.000 4,176.510 4,176.510 362068VT2 0000000000 GOVT NATL MTG ASSN POOL N 0.000 19,735.770 19,735.770 362069E85 0000000000 GOVT NATL MTG ASSN POOL N 0.000 1,405.140 1,405.140 362073NH7 0000000000 GOVT NATL MTG ASSN POOL N 0.000 1,522.260 1,522.260 3620785Q6 0000000000 GOVT NATL MTG ASSN POOL N 0.000 21,219.750 21,219.750 36208V4C6 0000000000 GOVT NATL MTG ASSN POOL N 0.000 659,243.950 659,243.950 36208VZT5 0000000000 GOVT NATL MTG ASSN POOL N 0.000 820,124.280 820,124.280 362101BX4 0000000000 GOVT NATL MTG ASSN POOL N 0.000 11,298.390 11,298.390 362101VE4 0000000000 GOVT NATL MTG ASSN POOL N 0.000 23,445.230 23,445.230 362105L97 0000000000 GOVT NATL MTG ASSN POOL N 0.000 4,859.660 4,859.660 36212WK97 0000000000 GOVT NTL MTG ASSN POOL NO 7,645,858.330 0.000 7,645,858.330 36213BT85 0000000000 GOVT NTL MTG ASSN POOL NO 0.000 867,821.320 867,821.320 36213BYM8 0000000000 GOVT NTL MTG ASSN POOL NO 0.000 334,490.080 334,490.080 36213HVQ9 0000000000 GOVT NTL MTG ASSN POOL NO 0.000 3,396,202.190 3,396,202.190 36213KC26 0000000000 GOVT NTL MTG ASSN POOL NO 0.000 852,750.850 852,750.850 =================================================================================================================================== MSIF Fixed MSIFT Investment Income III Grade Fixed Income Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description (f) Market Value Market Value Market Value % of Net Assets ------------ ------------------------ ------------ ------------------ ------------------ --------------- 36202KTU9 0000000000 GOVT NATL MTG ASSN II JUM 0.00 129,504.55 129,504.55 0.03% 36202KTV7 0000000000 GOVT NATL MTG ASSN II JUM 0.00 170,780.75 170,780.75 0.03% 36202KWQ4 0000000000 GOVT NATL MTG ASSN POOL N 0.00 1,227,600.04 1,227,600.04 0.24% 362065GX6 0000000000 GOVT NATL MTG ASSN POOL N 0.00 4,882.24 4,882.24 0.00% 362066AP7 0000000000 GOVT NATL MTG ASSN POOL N 0.00 7,817.30 7,817.30 0.00% 362066X23 0000000000 GOVT NATL MTG ASSN POOL N 0.00 218,353.50 218,353.50 0.04% 362067PL8 0000000000 GOVT NATL MTG ASSN POOL N 0.00 16,506.80 16,506.80 0.00% 362067YK0 0000000000 GOVT NATL MTG ASSN POOL N 0.00 4,647.16 4,647.16 0.00% 362068VT2 0000000000 GOVT NATL MTG ASSN POOL N 0.00 22,505.29 22,505.29 0.00% 362069E85 0000000000 GOVT NATL MTG ASSN POOL N 0.00 1,602.32 1,602.32 0.00% 362073NH7 0000000000 GOVT NATL MTG ASSN POOL N 0.00 1,735.88 1,735.88 0.00% 3620785Q6 0000000000 GOVT NATL MTG ASSN POOL N 0.00 23,629.04 23,629.04 0.00% 36208V4C6 0000000000 GOVT NATL MTG ASSN POOL N 0.00 671,222.41 671,222.41 0.13% 36208VZT5 0000000000 GOVT NATL MTG ASSN POOL N 0.00 835,025.94 835,025.94 0.16% 362101BX4 0000000000 GOVT NATL MTG ASSN POOL N 0.00 12,889.88 12,889.88 0.00% 362101VE4 0000000000 GOVT NATL MTG ASSN POOL N 0.00 26,747.73 26,747.73 0.01% 362105L97 0000000000 GOVT NATL MTG ASSN POOL N 0.00 5,544.19 5,544.19 0.00% 36212WK97 0000000000 GOVT NTL MTG ASSN POOL NO 7,808,332.82 0.00 7,808,332.82 1.51% 36213BT85 0000000000 GOVT NTL MTG ASSN POOL NO 0.00 883,589.63 883,589.63 0.17% 36213BYM8 0000000000 GOVT NTL MTG ASSN POOL NO 0.00 340,567.76 340,567.76 0.07% 36213HVQ9 0000000000 GOVT NTL MTG ASSN POOL NO 0.00 3,457,911.18 3,457,911.18 0.67% 36213KC26 0000000000 GOVT NTL MTG ASSN POOL NO 0.00 868,245.33 868,245.33 0.17% 14
49770th Page of 98TOC1stPreviousNextBottomJust 70th
[Enlarge/Download Table] =================================================================================================================================== MSIFT Investment MSIF Fixed Income III Grade Fixed Income Pro-Forma Portfolio Portfolio Combined Cusip Number Security Description (f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ ------------------------ --------------------- ------------------ ---------------- 36213KGC0 0000000000 GOVT NTL MTG ASSN POOL NO 0.000 757,385.810 757,385.810 36213RGX9 0000000000 GOVT NTL MTG ASSN POOL NO 0.000 497,730.770 497,730.770 36214JRZ9 0000000000 GOVT NATL MTG ASSN POOL N 0.000 55,696.260 55,696.260 36214PAZ3 0000000000 GOVT NATL MTG ASSN POOL N 0.000 52,980.590 52,980.590 3621503U6 0000000000 GOVT NATL MTG ASSN POOL N 0.000 56,365.360 56,365.360 362150MD3 0000000000 GOVT NATL MTG ASSN POOL N 0.000 27,810.180 27,810.180 362150VB7 0000000000 GOVT NATL MTG ASSN POOL N 0.000 3,460.870 3,460.870 3621512Y7 0000000000 GOVT NATL MTG ASSN POOL N 0.000 15,138.380 15,138.380 362152DS6 0000000000 GOVT NATL MTG ASSN POOL N 0.000 5,478.820 5,478.820 362153NA2 0000000000 GOVT NATL MTG ASSN POOL N 0.000 4,081.740 4,081.740 362155J79 0000000000 GOVT NATL MTG ASSN POOL N 0.000 2,251.770 2,251.770 362155V83 0000000000 GOVT NATL MTG ASSN POOL N 0.000 6,020.290 6,020.290 362157LH0 0000000000 GOVT NATL MTG ASSN POOL N 0.000 32,950.830 32,950.830 362159J97 0000000000 GOVT NATL MTG ASSN POOL N 0.000 4,045.800 4,045.800 362159TC9 0000000000 GOVT NATL MTG ASSN POOL N 0.000 3,239.000 3,239.000 36215ALX8 0000000000 GOVT NATL MTG ASSN POOL N 0.000 3,122.630 3,122.630 36215BH60 0000000000 GOVT NATL MTG ASSN POOL N 0.000 11,365.650 11,365.650 36215EMV3 0000000000 GOVT NATL MTG ASSN POOL N 0.000 1,890.630 1,890.630 36215GWU9 0000000000 GOVT NATL MTG ASSN POOL N 0.000 1,950.880 1,950.880 36215HP43 0000000000 GOVT NATL MTG ASSN POOL N 0.000 75,135.190 75,135.190 36215MTJ5 0000000000 GOVT NATL MTG ASSN POOL N 0.000 37,900.170 37,900.170 36215NPA6 0000000000 GOVT NATL MTG ASSN POOL N 0.000 6,365.210 6,365.210 36215RAQ8 0000000000 GOVT NATL MTG ASSN POOL N 0.000 69,199.570 69,199.570 =================================================================================================================================== MSIF Fixed MSIFT Investment Income III Grade Fixed Income Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description (f) Market Value Market Value Market Value % of Net Assets ------------ ------------------------ ------------ ------------------ ------------------ --------------- 36213KGC0 0000000000 GOVT NTL MTG ASSN POOL NO 0.00 771,147.51 771,147.51 0.15% 36213RGX9 0000000000 GOVT NTL MTG ASSN POOL NO 0.00 506,774.54 506,774.54 0.10% 36214JRZ9 0000000000 GOVT NATL MTG ASSN POOL N 0.00 62,036.17 62,036.17 0.01% 36214PAZ3 0000000000 GOVT NATL MTG ASSN POOL N 0.00 60,455.09 60,455.09 0.01% 3621503U6 0000000000 GOVT NATL MTG ASSN POOL N 0.00 62,692.94 62,692.94 0.01% 362150MD3 0000000000 GOVT NATL MTG ASSN POOL N 0.00 30,932.15 30,932.15 0.01% 362150VB7 0000000000 GOVT NATL MTG ASSN POOL N 0.00 3,849.39 3,849.39 0.00% 3621512Y7 0000000000 GOVT NATL MTG ASSN POOL N 0.00 16,837.81 16,837.81 0.00% 362152DS6 0000000000 GOVT NATL MTG ASSN POOL N 0.00 6,093.87 6,093.87 0.00% 362153NA2 0000000000 GOVT NATL MTG ASSN POOL N 0.00 4,539.47 4,539.47 0.00% 362155J79 0000000000 GOVT NATL MTG ASSN POOL N 0.00 2,504.55 2,504.55 0.00% 362155V83 0000000000 GOVT NATL MTG ASSN POOL N 0.00 6,696.13 6,696.13 0.00% 362157LH0 0000000000 GOVT NATL MTG ASSN POOL N 0.00 36,649.89 36,649.89 0.01% 362159J97 0000000000 GOVT NATL MTG ASSN POOL N 0.00 4,499.98 4,499.98 0.00% 362159TC9 0000000000 GOVT NATL MTG ASSN POOL N 0.00 3,602.61 3,602.61 0.00% 36215ALX8 0000000000 GOVT NATL MTG ASSN POOL N 0.00 3,562.48 3,562.48 0.00% 36215BH60 0000000000 GOVT NATL MTG ASSN POOL N 0.00 12,966.62 12,966.62 0.00% 36215EMV3 0000000000 GOVT NATL MTG ASSN POOL N 0.00 2,156.94 2,156.94 0.00% 36215GWU9 0000000000 GOVT NATL MTG ASSN POOL N 0.00 2,225.68 2,225.68 0.00% 36215HP43 0000000000 GOVT NATL MTG ASSN POOL N 0.00 85,718.73 85,718.73 0.02% 36215MTJ5 0000000000 GOVT NATL MTG ASSN POOL N 0.00 43,238.79 43,238.79 0.01% 36215NPA6 0000000000 GOVT NATL MTG ASSN POOL N 0.00 7,261.81 7,261.81 0.00% 36215RAQ8 0000000000 GOVT NATL MTG ASSN POOL N 0.00 78,947.02 78,947.02 0.02% 15
49771st Page of 98TOC1stPreviousNextBottomJust 71st
[Enlarge/Download Table] =================================================================================================================================== MSIFT Investment MSIF Fixed Income III Grade Fixed Income Pro-Forma Portfolio Portfolio Combined Cusip Number Security Description (f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ -------------------- --------------------- ------------------ ---------------- 36215S5Y5 0000000000 GOVT NATL MTG ASSN POOL N 0.000 64,422.250 64,422.250 36215UCX4 0000000000 GOVT NATL MTG ASSN POOL N 0.000 72,283.140 72,283.140 36215VBG0 0000000000 GOVT NATL MTG ASSN POOL N 0.000 2,995.620 2,995.620 36215WH80 0000000000 GOVT NATL MTG ASSN POOL N 0.000 1,012.130 1,012.130 36215XAN2 0000000000 GOVT NATL MTG ASSN POOL N 0.000 92,122.080 92,122.080 36215XPU0 0000000000 GOVT NATL MTG ASSN POOL N 0.000 5,837.830 5,837.830 362160MX8 0000000000 GOVT NATL MTG ASSN POOL N 0.000 9,779.690 9,779.690 362163ZU4 0000000000 GOVT NATL MTG ASSN POOL N 0.000 57,928.700 57,928.700 36216NVG5 0000000000 GOVT NATL MTG ASSN POOL N 0.000 10,708.860 10,708.860 36216T4P2 0000000000 GOVT NATL MTG ASSN POOL N 0.000 144,281.120 144,281.120 362184BE2 0000000000 GOVT NATL MTG ASSN POOL N 0.000 6,729.430 6,729.430 362184KT9 0000000000 GOVT NATL MTG ASSN POOL N 0.000 6,044.920 6,044.920 36218JF54 0000000000 GOVT NATL MTG ASSN POOL N 0.000 2,280.970 2,280.970 36218PJN7 0000000000 GOVT NATL MTG ASSN POOL N 0.000 7,885.260 7,885.260 36218PUT1 0000000000 GOVT NATL MTG ASSN POOL N 0.000 47,187.700 47,187.700 36218QCU6 0000000000 GOVT NATL MTG ASSN POOL N 0.000 8,804.240 8,804.240 36218SDX5 0000000000 GOVT NATL MTG ASSN POOL 0.000 6,803.840 6,803.840 36218TLJ5 0000000000 GOVT NATL MTG ASSN POOL N 0.000 19,877.510 19,877.510 36218UKG9 0000000000 GOVT NATL MTG ASSN POOL N 0.000 7,834.690 7,834.690 36218ULS2 0000000000 GOVT NATL MTG ASSN POOL N 0.000 1,627.930 1,627.930 36218WYM7 0000000000 GOVT NATL MTG ASSN POOL N 0.000 2,634.800 2,634.800 362191R26 0000000000 GOVT NATL MTG ASSN POOL N 0.000 6,982.560 6,982.560 362193UA0 0000000000 GOVT NTL MTG ASSN POOL NO 0.000 2,033.980 2,033.980 =================================================================================================================================== MSIF Fixed MSIFT Investment Income III Grade Fixed Income Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description (f) Market Value Market Value Market Value % of Net Assets ------------ -------------------- ------------ ------------------ ------------------ --------------- 36215S5Y5 0000000000 GOVT NATL MTG ASSN POOL N 0.00 73,496.77 73,496.77 0.01% 36215UCX4 0000000000 GOVT NATL MTG ASSN POOL N 0.00 80,397.65 80,397.65 0.02% 36215VBG0 0000000000 GOVT NATL MTG ASSN POOL N 0.00 3,331.91 3,331.91 0.00% 36215WH80 0000000000 GOVT NATL MTG ASSN POOL N 0.00 1,153.42 1,153.42 0.00% 36215XAN2 0000000000 GOVT NATL MTG ASSN POOL N 0.00 102,463.70 102,463.70 0.02% 36215XPU0 0000000000 GOVT NATL MTG ASSN POOL N 0.00 6,491.90 6,491.90 0.00% 362160MX8 0000000000 GOVT NATL MTG ASSN POOL N 0.00 10,877.56 10,877.56 0.00% 362163ZU4 0000000000 GOVT NATL MTG ASSN POOL N 0.00 64,434.09 64,434.09 0.01% 36216NVG5 0000000000 GOVT NATL MTG ASSN POOL N 0.00 11,911.04 11,911.04 0.00% 36216T4P2 0000000000 GOVT NATL MTG ASSN POOL N 0.00 160,478.12 160,478.12 0.03% 362184BE2 0000000000 GOVT NATL MTG ASSN POOL N 0.00 7,484.07 7,484.07 0.00% 362184KT9 0000000000 GOVT NATL MTG ASSN POOL N 0.00 6,722.80 6,722.80 0.00% 36218JF54 0000000000 GOVT NATL MTG ASSN POOL N 0.00 2,536.76 2,536.76 0.00% 36218PJN7 0000000000 GOVT NATL MTG ASSN POOL N 0.00 8,772.51 8,772.51 0.00% 36218PUT1 0000000000 GOVT NATL MTG ASSN POOL N 0.00 53,173.93 53,173.93 0.01% 36218QCU6 0000000000 GOVT NATL MTG ASSN POOL N 0.00 9,794.89 9,794.89 0.00% 36218SDX5 0000000000 GOVT NATL MTG ASSN POOL 0.00 7,567.91 7,567.91 0.00% 36218TLJ5 0000000000 GOVT NATL MTG ASSN POOL N 0.00 22,109.75 22,109.75 0.00% 36218UKG9 0000000000 GOVT NATL MTG ASSN POOL N 0.00 8,713.27 8,713.27 0.00% 36218ULS2 0000000000 GOVT NATL MTG ASSN POOL N 0.00 1,811.10 1,811.10 0.00% 36218WYM7 0000000000 GOVT NATL MTG ASSN POOL N 0.00 2,930.27 2,930.27 0.00% 362191R26 0000000000 GOVT NATL MTG ASSN POOL N 0.00 7,868.37 7,868.37 0.00% 362193UA0 0000000000 GOVT NTL MTG ASSN POOL NO 0.00 2,318.68 2,318.68 0.00% 16
49772nd Page of 98TOC1stPreviousNextBottomJust 72nd
[Enlarge/Download Table] =================================================================================================================================== MSIFT Investment MSIF Fixed Income III Grade Fixed Income Pro-Forma Portfolio Portfolio Combined Cusip Number Security Description (f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ ------------------------ --------------------- ------------------ ---------------- 36219LG65 0000000000 GOVT NATL MTG ASSN POOL N 0.000 7,440.590 7,440.590 36225A2Q2 0000000000 GOVT NTL MTG ASSN POOL NO 0.000 563,933.140 563,933.140 36225A2R0 0000000000 GOVT NTL MTG ASSN POOL NO 0.000 81,462.710 81,462.710 36225A3M0 0000000000 GOVT NTL MTG ASSN POOL NO 0.000 1,109,411.560 1,109,411.560 36225A5X4 0000000000 GOVT NATL MTG ASSN POOL N 0.000 1,142,983.270 1,142,983.270 36225ACS7 0000000000 GOVT NATL MTG ASSN POOL N 0.000 618,362.220 618,362.220 36225AEN6 0000000000 GOVT NATL MTG ASSN POOL N 0.000 387,481.670 387,481.670 36225AFD7 0000000000 GOVT NATL MTG ASSN POOL N 0.000 1,096,157.010 1,096,157.010 36225AFL9 0000000000 GOVT NATL MTG ASSN POOL N 0.000 1,251,659.940 1,251,659.940 36225ASC5 0000000000 GOVT NATL MTG ASSN POOL N 0.000 994,875.030 994,875.030 36225AVA5 0000000000 GOVT NATL MTG ASSN POOL N 0.000 316,670.050 316,670.050 36225AX47 0000000000 GOVT NATL MTG ASSN POOL N 0.000 528,681.350 528,681.350 36225AZ52 0000000000 GOVT NTL MTG ASSN POOL NO 0.000 1,139,037.020 1,139,037.020 36225AZV5 0000000000 GOVT NTL MTG ASSN POOL NO 0.000 1,069,891.930 1,069,891.930 36225BAG3 0000000000 GOVT NTL MTG ASSN POOL NO 0.000 916,817.330 916,817.330 36225BJV1 0000000000 GOVT NTL MTG ASSN POOL NO 8,661,503.160 0.000 8,661,503.160 36225BJV1 0000000000 GOVT NTL MTG ASSN POOL NO 0.000 963,671.380 963,671.380 36225CD52 0000000000 GOVT NATL MTG ASSN II JUM 0.000 789,769.480 789,769.480 36225CE69 0000000000 GOVT NATL MTG ASSN II CUS 0.000 237,783.240 237,783.240 36225CEK8 0000000000 GOVT NATL MTG ASSN II JUM 0.000 857,754.210 857,754.210 36225CET9 0000000000 GOVT NATL MTG ASSN II CUS 0.000 219,052.210 219,052.210 36228CAY9 0000000000 GS MTG SECS CORP II 0.000 2,368,238.360 2,368,238.360 362320BA0 0000000000 GTE CORP 480,000.000 1,475,000.000 1,955,000.000 370425RX0 0000000000 GENERAL MOTORS ACCEPTANCE 0.000 570,000.000 570,000.000 370425RZ5 0000000000 GENERAL MTRS ACCEP CORP N 500,000.000 565,000.000 1,065,000.000 38141MMN8 0000000000 GOLDMAN SACHS GROUP L P M 1,250,000.000 0.000 1,250,000.000 =================================================================================================================================== MSIF Fixed MSIFT Investment Income III Grade Fixed Income Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description (f) Market Value Market Value Market Value % of Net Assets ------------ ------------------------ ------------ ------------------ ------------------ --------------- 36219LG65 0000000000 GOVT NATL MTG ASSN POOL N 0.00 8,274.98 8,274.98 0.00% 36225A2Q2 0000000000 GOVT NTL MTG ASSN POOL NO 0.00 625,198.84 625,198.84 0.12% 36225A2R0 0000000000 GOVT NTL MTG ASSN POOL NO 0.00 90,620.75 90,620.75 0.02% 36225A3M0 0000000000 GOVT NTL MTG ASSN POOL NO 0.00 1,233,820.97 1,233,820.97 0.24% 36225A5X4 0000000000 GOVT NATL MTG ASSN POOL N 0.00 1,267,156.97 1,267,156.97 0.25% 36225ACS7 0000000000 GOVT NATL MTG ASSN POOL N 0.00 687,705.36 687,705.36 0.13% 36225AEN6 0000000000 GOVT NATL MTG ASSN POOL N 0.00 431,022.99 431,022.99 0.08% 36225AFD7 0000000000 GOVT NATL MTG ASSN POOL N 0.00 1,219,211.60 1,219,211.60 0.24% 36225AFL9 0000000000 GOVT NATL MTG ASSN POOL N 0.00 1,369,034.18 1,369,034.18 0.27% 36225ASC5 0000000000 GOVT NATL MTG ASSN POOL N 0.00 1,103,137.33 1,103,137.33 0.21% 36225AVA5 0000000000 GOVT NATL MTG ASSN POOL N 0.00 351,041.42 351,041.42 0.07% 36225AX47 0000000000 GOVT NATL MTG ASSN POOL N 0.00 586,117.29 586,117.29 0.11% 36225AZ52 0000000000 GOVT NTL MTG ASSN POOL NO 0.00 1,266,768.63 1,266,768.63 0.25% 36225AZV5 0000000000 GOVT NTL MTG ASSN POOL NO 0.00 1,189,869.61 1,189,869.61 0.23% 36225BAG3 0000000000 GOVT NTL MTG ASSN POOL NO 0.00 1,016,567.06 1,016,567.06 0.20% 36225BJV1 0000000000 GOVT NTL MTG ASSN POOL NO 8,858,552.36 0.00 8,858,552.36 1.72% 36225BJV1 0000000000 GOVT NTL MTG ASSN POOL NO 0.00 981,181.29 981,181.29 0.19% 36225CD52 0000000000 GOVT NATL MTG ASSN II JUM 0.00 807,341.85 807,341.85 0.16% 36225CE69 0000000000 GOVT NATL MTG ASSN II CUS 0.00 240,434.52 240,434.52 0.05% 36225CEK8 0000000000 GOVT NATL MTG ASSN II JUM 0.00 876,839.24 876,839.24 0.17% 36225CET9 0000000000 GOVT NATL MTG ASSN II CUS 0.00 223,926.12 223,926.12 0.04% 36228CAY9 0000000000 GS MTG SECS CORP II 0.00 73,391.71 73,391.71 0.01% 362320BA0 0000000000 GTE CORP 476,154.24 1,451,513.58 1,927,667.82 0.37% 370425RX0 0000000000 GENERAL MOTORS ACCEPTANCE 0.00 552,593.34 552,593.34 0.11% 370425RZ5 0000000000 GENERAL MTRS ACCEP CORP N 508,892.50 568,595.10 1,077,487.60 0.21% 38141MMN8 0000000000 GOLDMAN SACHS GROUP L P M 1,275,896.25 0.00 1,275,896.25 0.25% 17
49773rd Page of 98TOC1stPreviousNextBottomJust 73rd
[Enlarge/Download Table] =================================================================================================================================== MSIFT Investment MSIF Fixed Income III Grade Fixed Income Pro-Forma Portfolio Portfolio Combined Cusip Number Security Description (f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ ------------------------ --------------------- ------------------ ---------------- 3837H2B24 0000000000 GOVERNMENT NATL MTG ASSN 0.000 5,137,510.500 5,137,510.500 3837H2L56 0000000000 GOVERNMENT NATL MTG ASSN 0.000 4,036,654.440 4,036,654.440 3837H2WC9 0000000000 GOVT NATL MTG ASSN GTD 0.000 3,650,852.270 3,650,852.270 41020VAA9 0000000000 HANCOCK JOHN MUT LIFE INS 1,050,000.000 1,305,000.000 2,355,000.000 416515AD6 0000000000 HARTFORD FINL SVCS GROUP 655,000.000 0.000 655,000.000 416515AE4 0000000000 HARTFORD FINL SVCS GROUP 125,000.000 0.000 125,000.000 416592AC7 0000000000 HARTFORD LIFE INC DEB 0.000 970,000.000 970,000.000 428040BN8 0000000000 HERTZ CORP NOTES 0.000 865,000.000 865,000.000 4319902C3 0000000000 CSFB/SWAP/LONG/LB AAA * 0.000 750,000.000 750,000.000 4319902D1 0000000000 CSFB/SWAP/SHORT * 0.000 (750,000.000) (750,000.000) 437296205 0000000000 HOME OWNERSHIP FDG SER 19 0.000 4,350.000 4,350.000 43811RAC3 0000000000 HONDA AUTO RECEIVABLES 865,000.000 0.000 865,000.000 43811YAB0 0000000000 HONDA AUTO RECEIVABLES OW 0.000 1,800,000.000 1,800,000.000 438516AN6 0000000000 HONEYWELL INTL INC NT DTD 755,000.000 880,000.000 1,635,000.000 441812FY5 0000000000 HOUSEHOLD FIN CORP SR UNS 165,000.000 285,000.000 450,000.000 441812GE8 0000000000 HOUSEHOLD FIN CORP SR UNS 1,020,000.000 0.000 1,020,000.000 441812GM0 0000000000 HOUSEHOLD FIN CORP NT 0.000 955,000.000 955,000.000 4429902B2 0000000000 MERRILL CMBS SWAP LONG * 0.000 2,200,000.000 2,200,000.000 4429902C0 0000000000 MERRILL CMBS SWAP SHORT * 0.000 (2,200,000.000) (2,200,000.000) 448414AC6 0000000000 HUTCHISON WHAMPOA FIN 0.000 905,000.000 905,000.000 448414AE2 0000000000 HUTCHISON WHAMPOA FIN C I 525,000.000 0.000 525,000.000 44856LAF3 0000000000 HYATT EQUITIES LLC MEDIUM 0.000 1,045,000.000 1,045,000.000 =================================================================================================================================== MSIF Fixed MSIFT Investment Income III Grade Fixed Income Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description (f) Market Value Market Value Market Value % of Net Assets ------------ ------------------------ ------------ ------------------ ------------------ --------------- 3837H2B24 0000000000 GOVERNMENT NATL MTG ASSN 0.00 393,019.55 393,019.55 0.08% 3837H2L56 0000000000 GOVERNMENT NATL MTG ASSN 0.00 278,529.16 278,529.16 0.05% 3837H2WC9 0000000000 GOVT NATL MTG ASSN GTD 0.00 336,608.58 336,608.58 0.07% 41020VAA9 0000000000 HANCOCK JOHN MUT LIFE INS 1,050,217.35 1,294,869.29 2,345,086.64 0.45% 416515AD6 0000000000 HARTFORD FINL SVCS GROUP 702,085.33 0.00 702,085.33 0.14% 416515AE4 0000000000 HARTFORD FINL SVCS GROUP 136,819.13 0.00 136,819.13 0.03% 416592AC7 0000000000 HARTFORD LIFE INC DEB 0.00 1,025,327.83 1,025,327.83 0.20% 428040BN8 0000000000 HERTZ CORP NOTES 0.00 875,239.01 875,239.01 0.17% 4319902C3 0000000000 CSFB/SWAP/LONG/LB AAA * 0.00 769,627.50 769,627.50 0.15% 4319902D1 0000000000 CSFB/SWAP/SHORT * 0.00 (750,007.50) (750,007.50) -0.15% 437296205 0000000000 HOME OWNERSHIP FDG SER 19 0.00 3,104,155.65 3,104,155.65 0.60% 43811RAC3 0000000000 HONDA AUTO RECEIVABLES 891,606.36 0.00 891,606.36 0.17% 43811YAB0 0000000000 HONDA AUTO RECEIVABLES OW 0.00 1,802,260.98 1,802,260.98 0.35% 438516AN6 0000000000 HONEYWELL INTL INC NT DTD 747,045.32 866,219.20 1,613,264.52 0.31% 441812FY5 0000000000 HOUSEHOLD FIN CORP SR UNS 163,714.16 281,275.62 444,989.78 0.09% 441812GE8 0000000000 HOUSEHOLD FIN CORP SR UNS 970,218.90 0.00 970,218.90 0.19% 441812GM0 0000000000 HOUSEHOLD FIN CORP NT 0.00 1,022,932.02 1,022,932.02 0.20% 4429902B2 0000000000 MERRILL CMBS SWAP LONG * 0.00 2,201,936.00 2,201,936.00 0.43% 4429902C0 0000000000 MERRILL CMBS SWAP SHORT * 0.00 (2,200,022.00) (2,200,022.00) -0.43% 448414AC6 0000000000 HUTCHISON WHAMPOA FIN 0.00 891,256.68 891,256.67 0.17% 448414AE2 0000000000 HUTCHISON WHAMPOA FIN C I 495,358.50 0.00 495,358.50 0.10% 44856LAF3 0000000000 HYATT EQUITIES LLC MEDIUM 0.00 1,099,476.90 1,099,476.90 0.21% 18
49774th Page of 98TOC1stPreviousNextBottomJust 74th
[Enlarge/Download Table] =================================================================================================================================== MSIFT Investment MSIF Fixed Income III Grade Fixed Income Pro-Forma Portfolio Portfolio Combined Cusip Number Security Description (f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ ------------------------ --------------------- ------------------ ---------------- 477122AN5 0000000000 JET EQUIP TR SER 1994-A S 0.000 1,400,000.000 1,400,000.000 501044BT7 0000000000 KROGER CO SR NT SER B DTD 105,000.000 1,125,000.000 1,230,000.000 501044BV2 0000000000 KROGER CO SR DEB 680,000.000 0.000 680,000.000 501044BZ3 0000000000 KROGER CO NT 125,000.000 0.000 125,000.000 52108HBK9 0000000000 LB UBS COMMERCIAL MORTGAG 1,100,000.000 0.000 1,100,000.000 5249902A5 0000000000 LEHMAN BROTHERS CMBS LONG * 0.000 925,000.000 925,000.000 5249902B3 0000000000 LEHMAN BROTHERS CMBS SHOR * 0.000 (925,000.000) (925,000.000) 52519SAA1 0000000000 LEHMAN ABS MANUFACTURED H 0.000 1,284,311.630 1,284,311.630 539830AF6 0000000000 LOCKHEED MARTIN CORP 415,000.000 470,000.000 885,000.000 548661AH0 0000000000 LOWES COS INC DEB 0.000 1,340,000.000 1,340,000.000 548661AK3 0000000000 LOWES COS INC DEB DTD 02/ 1,030,000.000 0.000 1,030,000.000 55262TEB5 0000000000 MBNA MASTER CR CARD TR II 760,000.000 0.000 760,000.000 55262TFJ7 0000000000 MBNA MASTER CR CARD TR II 1,220,000.000 1,495,000.000 2,715,000.000 5526E0AJ2 0000000000 MBNA AMER BK NATL ASSN 345,000.000 465,000.000 810,000.000 553083AY2 0000000000 MMCA AUTO OWNER TR 2000-1 1,080,000.000 0.000 1,080,000.000 5569902D0 0000000000 ML SWAP/6MO LIBOR/SHORT * 0.000 (1,375,000.000) (1,375,000.000) 5599902A3 0000000000 ML SWAP LONG * 0.000 1,375,000.000 1,375,000.000 5685048 0000000000 FRANCE(GOVT OF) 5,095,000.000 6,025,000.000 11,120,000.000 571900AS8 0000000000 MARRIOTT INTL INC NT SER 910,000.000 1,170,000.000 2,080,000.000 577778BH5 0000000000 MAY DEPT STORES CO DEB DT 0.000 1,300,000.000 1,300,000.000 577778BJ1 0000000000 MAT DEPT STORES CO NT DTD 635,000.000 0.000 635,000.000 577778BK8 0000000000 MAY DEPT STORES CO NT 0.000 105,000.000 105,000.000 589929QA9 0000000000 MERRILL LYNCH MTG INVS IN 1,837,134.000 0.000 1,837,134.000 592173AB4 0000000000 METROPOLITAN LIFE INS CO 0.000 625,000.000 625,000.000 592173AE8 0000000000 METROPOLITAN LIFE INS CO 775,000.000 875,000.000 1,650,000.000 595494AE5 0000000000 MID ST TR II MTG BACKED N 0.000 315,000.000 315,000.000 59549PAA6 0000000000 MID ST TR IV ASSET BACKED 1,747,969.787 0.000 1,747,969.787 =================================================================================================================================== MSIF Fixed MSIFT Investment Income III Grade Fixed Income Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description (f) Market Value Market Value Market Value % of Net Assets ------------ ------------------------ ------------ ------------------ ------------------ --------------- 477122AN5 0000000000 JET EQUIP TR SER 1994-A S 0.00 941,234.00 941,234.00 0.18% 501044BT7 0000000000 KROGER CO SR NT SER B DTD 112,666.47 1,193,311.13 1,305,977.60 0.25% 501044BV2 0000000000 KROGER CO SR DEB 754,266.88 0.00 754,266.88 0.15% 501044BZ3 0000000000 KROGER CO NT 131,207.63 0.00 131,207.63 0.03% 52108HBK9 0000000000 LB UBS COMMERCIAL MORTGAG 1,176,186.00 0.00 1,176,186.00 0.23% 5249902A5 0000000000 LEHMAN BROTHERS CMBS LONG * 0.00 933,667.25 933,667.25 0.18% 5249902B3 0000000000 LEHMAN BROTHERS CMBS SHOR * 0.00 (925,009.25) (925,009.25) -0.18% 52519SAA1 0000000000 LEHMAN ABS MANUFACTURED H 0.00 1,281,222.48 1,281,222.48 0.25% 539830AF6 0000000000 LOCKHEED MARTIN CORP 447,623.57 503,057.45 950,681.02 0.18% 548661AH0 0000000000 LOWES COS INC DEB 0.00 1,329,718.18 1,329,718.18 0.26% 548661AK3 0000000000 LOWES COS INC DEB DTD 02/ 995,008.84 0.00 995,008.84 0.19% 55262TEB5 0000000000 MBNA MASTER CR CARD TR II 770,965.05 0.00 770,965.05 0.15% 55262TFJ7 0000000000 MBNA MASTER CR CARD TR II 1,362,023.37 1,660,554.66 3,022,578.03 0.59% 5526E0AJ2 0000000000 MBNA AMER BK NATL ASSN 338,546.78 454,367.31 792,914.09 0.15% 553083AY2 0000000000 MMCA AUTO OWNER TR 2000-1 1,108,472.04 0.00 1,108,472.04 0.21% 5569902D0 0000000000 ML SWAP/6MO LIBOR/SHORT * 0.00 (1,375,013.75) (1,375,013.75) -0.27% 5599902A3 0000000000 ML SWAP LONG * 0.00 1,375,412.50 1,375,412.50 0.27% 5685048 0000000000 FRANCE(GOVT OF) 4,272,891.95 5,038,664.65 9,311,556.60 1.81% 571900AS8 0000000000 MARRIOTT INTL INC NT SER 915,456.36 1,171,552.59 2,087,008.95 0.40% 577778BH5 0000000000 MAY DEPT STORES CO DEB DT 0.00 1,233,956.10 1,233,956.10 0.24% 577778BJ1 0000000000 MAT DEPT STORES CO NT DTD 637,101.22 0.00 637,101.22 0.12% 577778BK8 0000000000 MAY DEPT STORES CO NT 0.00 114,272.13 114,272.13 0.02% 589929QA9 0000000000 MERRILL LYNCH MTG INVS IN 1,884,568.80 0.00 1,884,568.80 0.37% 592173AB4 0000000000 METROPOLITAN LIFE INS CO 0.00 608,766.25 608,766.25 0.12% 592173AE8 0000000000 METROPOLITAN LIFE INS CO 789,924.95 884,723.00 1,674,647.95 0.32% 595494AE5 0000000000 MID ST TR II MTG BACKED N 0.00 319,690.35 319,690.35 0.06% 59549PAA6 0000000000 MID ST TR IV ASSET BACKED 1,874,120.77 0.00 1,874,120.77 0.36% 19
49775th Page of 98TOC1stPreviousNextBottomJust 75th
[Enlarge/Download Table] =================================================================================================================================== MSIFT Investment MSIF Fixed Income III Grade Fixed Income Pro-Forma Portfolio Portfolio Combined Cusip Number Security Description (f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ ------------------------ --------------------- ------------------ ---------------- 617440201 0000000000 MORGAN STANLEY INSTITUTIO 0.000 228.038 228.038 617440300 0000000000 MORGAN STANLEY INSTITUTIO 0.000 66.139 66.139 617440508 0000000000 MORGAN STANLEY INSTITUTIO 0.000 289.059 289.059 617440755 0000000000 MORGAN STANLEY INSTITUTIO 0.000 24.294 24.294 617440771 0000000000 MORGAN STANLEY INSTITUTIO 0.000 330.383 330.383 617440813 0000000000 MORGAN STANLEY INSTITUTIO 0.000 290.715 290.715 617440862 0000000000 MORGAN STANLEY INSTITUTIO 0.000 300.466 300.466 617440888 0000000000 MORGAN STANLEY INSTITUTIO 0.000 441.081 441.081 619087BM0 0000000000 MORSERV INC SER 96-2 MTG 0.000 511,648.280 511,648.280 638671AB3 0000000000 NATIONWIDE MUTUAL INS CO 345,000.000 1,245,000.000 1,590,000.000 638671AC1 0000000000 NATIONWIDE MUTUAL INS NTS 745,000.000 0.000 745,000.000 652478AL2 0000000000 NEWS AMER HOLDINGS INC 850,000.000 200,000.000 1,050,000.000 652478AR9 0000000000 NEWS AMER HLDGS INC SR DE 0.000 550,000.000 550,000.000 652478AU2 0000000000 NEWS AMER HLDGS INC SR DE 0.000 565,000.000 565,000.000 652482AU4 0000000000 NEWS AMER INC SR DEB 165,000.000 0.000 165,000.000 65473QAJ2 0000000000 NISOURCE FIN CORP GTD 660,000.000 1,045,000.000 1,705,000.000 65474MAB7 0000000000 NISSAN AUTO RECEIVABLES 0.000 1,225,208.360 1,225,208.360 65474RAD2 0000000000 NISSAN AUTO RECEIVABLES 0.000 750,000.000 750,000.000 655356BK8 0000000000 NOMURA ASSET SECS CORP CO 0.000 447,972.980 447,972.980 666807AW2 0000000000 NORTHROP GRUMMAN CORP 270,000.000 305,000.000 575,000.000 677871AA3 0000000000 OIL ENTERPRISES LTD GTD N 1,436,182.540 1,208,026.470 2,644,209.010 =================================================================================================================================== MSIF Fixed MSIFT Investment Income III Grade Fixed Income Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description (f) Market Value Market Value Market Value % of Net Assets ------------ ------------------------ ------------ ------------------ ------------------ --------------- 617440201 0000000000 MORGAN STANLEY INSTITUTIO 0.00 3,520.91 3,520.91 0.00% 617440300 0000000000 MORGAN STANLEY INSTITUTIO 0.00 764.57 764.57 0.00% 617440508 0000000000 MORGAN STANLEY INSTITUTIO 0.00 7,333.43 7,333.43 0.00% 617440755 0000000000 MORGAN STANLEY INSTITUTIO 0.00 958.16 958.16 0.00% 617440771 0000000000 MORGAN STANLEY INSTITUTIO 0.00 7,017.33 7,017.33 0.00% 617440813 0000000000 MORGAN STANLEY INSTITUTIO 0.00 2,910.06 2,910.06 0.00% 617440862 0000000000 MORGAN STANLEY INSTITUTIO 0.00 3,112.83 3,112.83 0.00% 617440888 0000000000 MORGAN STANLEY INSTITUTIO 0.00 3,246.36 3,246.36 0.00% 619087BM0 0000000000 MORSERV INC SER 96-2 MTG 0.00 509,381.68 509,381.68 0.10% 638671AB3 0000000000 NATIONWIDE MUTUAL INS CO 310,419.62 1,112,180.91 1,422,600.53 0.28% 638671AC1 0000000000 NATIONWIDE MUTUAL INS NTS 743,391.55 0.00 743,391.55 0.14% 652478AL2 0000000000 NEWS AMER HOLDINGS INC 919,073.55 214,800.00 1,133,873.55 0.22% 652478AR9 0000000000 NEWS AMER HLDGS INC SR DE 0.00 531,494.15 531,494.15 0.10% 652478AU2 0000000000 NEWS AMER HLDGS INC SR DE 0.00 545,941.42 545,941.42 0.11% 652482AU4 0000000000 NEWS AMER INC SR DEB 153,643.05 0.00 153,643.05 0.03% 65473QAJ2 0000000000 NISOURCE FIN CORP GTD 683,049.18 1,065,269.87 1,748,319.05 0.34% 65474MAB7 0000000000 NISSAN AUTO RECEIVABLES 0.00 1,237,276.84 1,237,276.84 0.24% 65474RAD2 0000000000 NISSAN AUTO RECEIVABLES 632,622.38 125,091.01 757,713.38 0.15% 655356BK8 0000000000 NOMURA ASSET SECS CORP CO 0.00 447,972.98 447,972.98 0.09% 666807AW2 0000000000 NORTHROP GRUMMAN CORP 292,398.66 326,832.82 619,231.48 0.12% 677871AA3 0000000000 OIL ENTERPRISES LTD GTD N 1,470,105.17 1,231,872.91 2,701,978.08 0.52% 20
49776th Page of 98TOC1stPreviousNextBottomJust 76th
[Enlarge/Download Table] =================================================================================================================================== MSIFT Investment MSIF Fixed Income III Grade Fixed Income Pro-Forma Portfolio Portfolio Combined Cusip Number Security Description(f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ ----------------------- --------------------- ------------------ ---------------- 677884AA6 0000000000 OIL PUR CO SR SECD NT 0.000 157,411.280 157,411.280 69319CAA2 0000000000 PCCW-HKTC CAP LTD GTD 645,000.000 725,000.000 1,370,000.000 69361YAF0 0000000000 PSE&G TRANSITION FDG 575,000.000 620,000.000 1,195,000.000 705220AF8 0000000000 PECO ENERGY TRANSITION TR 1,250,000.000 0.000 1,250,000.000 705220AK7 0000000000 PECO ENERGY TRANSITION 0.000 1,225,000.000 1,225,000.000 705220AM3 0000000000 PECO ENERGY TRANSITION 325,000.000 725,000.000 1,050,000.000 71713UAW2 0000000000 PHARMACIA CORP DEB 0.000 695,000.000 695,000.000 741933AB1 0000000000 PRIME PPTY FDG II INC 0.000 1,380,000.000 1,380,000.000 74438GAC5 0000000000 PRUDENTIAL HLDGS LLC SER 1,775,000.000 2,040,000.000 3,815,000.000 74438GAE1 0000000000 PRUDENTIAL HLDGS LLC S 995,000.000 1,025,000.000 2,020,000.000 74913EAC4 0000000000 QWEST CAP FDG INC GTD 815,000.000 0.000 815,000.000 74913EAE0 0000000000 QWEST CAP FDG INC GTD 0.000 1,180,000.000 1,180,000.000 74913EAJ9 0000000000 QWEST CAP FDG INC NT 315,000.000 0.000 315,000.000 754052AC2 0000000000 RAS LAFFAN LIQ NAT GAS 0.000 1,070,000.000 1,070,000.000 755111BG5 0000000000 RAYTHEON CO NT 680,000.000 705,000.000 1,385,000.000 755111BH3 0000000000 RAYTHEON CO NT 100,000.000 0.000 100,000.000 755111BH3 0000000000 RAYTHEON CO NT 0.000 330,000.000 330,000.000 758202AB1 0000000000 REED ELSEVIER CAP INC 235,000.000 150,000.000 385,000.000 76110VEP9 0000000000 RESIDENTIAL FDG MTG SECS 1,100,000.000 0.000 1,100,000.000 76110WKN5 0000000000 RESIDENTIAL ASSET SECUR 0.000 571,039.560 571,039.560 76110YWW8 0000000000 RESIDENTIAL FDG MTG SECS 152,402.980 0.000 152,402.980 =================================================================================================================================== MSIF Fixed MSIFT Investment Income III Grade Fixed Income Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description(f) Market Value Market Value Market Value % of Net Assets ------------ ----------------------- ------------ ------------------ ------------------ --------------- 677884AA6 0000000000 OIL PUR CO SR SECD NT 0.00 156,531.35 156,531.35 0.03% 69319CAA2 0000000000 PCCW-HKTC CAP LTD GTD 637,191.63 714,618.00 1,351,809.63 0.26% 69361YAF0 0000000000 PSE&G TRANSITION FDG 596,200.42 638,192.04 1,234,392.46 0.24% 705220AF8 0000000000 PECO ENERGY TRANSITION TR 1,294,978.75 0.00 1,294,978.75 0.25% 705220AK7 0000000000 PECO ENERGY TRANSITION 0.00 1,343,461.30 1,343,461.30 0.26% 705220AM3 0000000000 PECO ENERGY TRANSITION 337,889.01 749,040.06 1,086,929.07 0.21% 71713UAW2 0000000000 PHARMACIA CORP DEB 0.00 696,052.93 696,052.93 0.13% 741933AB1 0000000000 PRIME PPTY FDG II INC 0.00 1,440,870.42 1,440,870.42 0.28% 74438GAC5 0000000000 PRUDENTIAL HLDGS LLC SER 1,817,440.25 2,071,212.00 3,888,652.25 0.75% 74438GAE1 0000000000 PRUDENTIAL HLDGS LLC S 1,034,969.15 1,058,589.25 2,093,558.40 0.41% 74913EAC4 0000000000 QWEST CAP FDG INC GTD 837,959.37 0.00 837,959.37 0.16% 74913EAE0 0000000000 QWEST CAP FDG INC GTD 0.00 1,191,776.40 1,191,776.40 0.23% 74913EAJ9 0000000000 QWEST CAP FDG INC NT 302,233.68 0.00 302,233.68 0.06% 754052AC2 0000000000 RAS LAFFAN LIQ NAT GAS 0.00 1,084,712.50 1,084,712.50 0.21% 755111BG5 0000000000 RAYTHEON CO NT 737,068.32 761,430.32 1,498,498.64 0.29% 755111BH3 0000000000 RAYTHEON CO NT 110,948.20 0.00 110,948.20 0.02% 755111BH3 0000000000 RAYTHEON CO NT 0.00 364,455.30 364,455.30 0.07% 758202AB1 0000000000 REED ELSEVIER CAP INC 238,381.65 151,347.60 389,729.25 0.08% 76110VEP9 0000000000 RESIDENTIAL FDG MTG SECS 1,112,870.11 0.00 1,112,870.11 0.22% 76110WKN5 0000000000 RESIDENTIAL ASSET SECUR 0.00 574,362.84 574,362.84 0.11% 76110YWW8 0000000000 RESIDENTIAL FDG MTG SECS 152,412.12 0.00 152,412.12 0.03% 21
49777th Page of 98TOC1stPreviousNextBottomJust 77th
[Enlarge/Download Table] =================================================================================================================================== MSIFT Investment MSIF Fixed Income III Grade Fixed Income Pro-Forma Portfolio Portfolio Combined Cusip Number Security Description(f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ ----------------------- --------------------- ------------------ ---------------- 783760QB0 0000000000 RYLAND ACCEP CORP FOUR CO 0.000 347,449.886 347,449.886 786514BC2 0000000000 SAFEWAY INC NT 110,000.000 0.000 110,000.000 7959902K5 0000000000 SALOMON CMBS SWAP* 0.000 1,500,000.000 1,500,000.000 7959902M1 0000000000 SALOMON CMBS LIBOR SHORT* 0.000 (1,500,000.000) (1,500,000.000) 7959902N9 0000000000 SALOMON CMBS SWAP LONG* 0.000 1,700,000.000 1,700,000.000 7959902P4 0000000000 SALOMON CMBS SWAP SHORT* 0.000 (1,700,000.000) (1,700,000.000) 828807AJ6 0000000000 SIMON PPTY GROUP L P NT 0.000 495,000.000 495,000.000 84474QAB9 0000000000 SOUTHWEST AIRLS 2001 1 240,000.000 280,000.000 520,000.000 866810AF1 0000000000 SUN MICROSYSTEMS INC 595,000.000 725,000.000 1,320,000.000 87203RAA0 0000000000 SYSTEMS 2001 A T LLC A 1,552,661.210 1,815,782.370 3,368,443.580 872287AF4 0000000000 TCI COMMUNICATIONS INC 250,000.000 270,000.000 520,000.000 872649BL1 0000000000 TRW INC NT 145,000.000 230,000.000 375,000.000 87971MAC7 0000000000 TELUS CORP NT 160,000.000 375,000.000 535,000.000 88033GAU4 0000000000 TENET HEALTHCARE CORP SR 715,000.000 840,000.000 1,555,000.000 8849902C5 0000000000 SWAP LONG LEHMAN* 0.000 650,000.000 650,000.000 8849902D3 0000000000 SWAP SHORT LEHMAN* 0.000 (650,000.000) (650,000.000) 887315BH1 0000000000 TTM TECHNOLOGIES INC COM 165,000.000 0.000 165,000.000 887315BN8 0000000000 TIME WARNER INC DEB DTD 1 290,000.000 970,000.000 1,260,000.000 89232TAA7 0000000000 TOYOTA AUTO RECEIVABLE 0.000 2,546,791.450 2,546,791.450 902045AA1 0000000000 277 PK AVE FIN CORP COML 1,135,749.840 0.000 1,135,749.840 =================================================================================================================================== MSIF Fixed MSIFT Investment Income III Grade Fixed Income Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description(f) Market Value Market Value Market Value % of Net Assets ------------ ----------------------- ------------ ------------------ ------------------ --------------- 783760QB0 0000000000 RYLAND ACCEP CORP FOUR CO 0.00 355,385.64 355,385.64 0.07% 786514BC2 0000000000 SAFEWAY INC NT 112,160.07 0.00 112,160.07 0.02% 7959902K5 0000000000 SALOMON CMBS SWAP* 0.00 1,468,260.00 1,468,260.00 0.28% 7959902M1 0000000000 SALOMON CMBS LIBOR SHORT* 0.00 (1,500,015.00) (1,500,015.00) -0.29% 7959902N9 0000000000 SALOMON CMBS SWAP LONG* 0.00 1,711,016.00 1,711,016.00 0.33% 7959902P4 0000000000 SALOMON CMBS SWAP SHORT* 0.00 (1,700,017.00) (1,700,017.00) -0.33% 828807AJ6 0000000000 SIMON PPTY GROUP L P NT 0.00 481,949.33 481,949.33 0.09% 84474QAB9 0000000000 SOUTHWEST AIRLS 2001 1 236,313.74 274,647.49 510,961.23 0.10% 866810AF1 0000000000 SUN MICROSYSTEMS INC 607,239.15 732,199.25 1,339,438.40 0.26% 87203RAA0 0000000000 SYSTEMS 2001 A T LLC A 1,600,738.59 1,839,750.70 3,440,489.29 0.67% 872287AF4 0000000000 TCI COMMUNICATIONS INC 258,326.00 276,927.39 535,253.39 0.10% 872649BL1 0000000000 TRW INC NT 149,335.36 236,011.97 385,347.33 0.07% 87971MAC7 0000000000 TELUS CORP NT 169,787.52 392,783.63 562,571.15 0.11% 88033GAU4 0000000000 TENET HEALTHCARE CORP SR 660,345.40 766,567.20 1,426,912.60 0.28% 8849902C5 0000000000 SWAP LONG LEHMAN* 0.00 635,485.50 635,485.50 0.12% 8849902D3 0000000000 SWAP SHORT LEHMAN* 0.00 (650,006.50) (650,006.50) -0.13% 887315BH1 0000000000 TTM TECHNOLOGIES INC COM 171,966.14 0.00 171,966.14 0.03% 887315BN8 0000000000 TIME WARNER INC DEB DTD 1 271,153.19 880,166.36 1,151,319.55 0.22% 89232TAA7 0000000000 TOYOTA AUTO RECEIVABLE 0.00 2,570,199.02 2,570,199.02 0.50% 902045AA1 0000000000 277 PK AVE FIN CORP COML 1,209,039.78 0.00 1,209,039.78 0.23% 22
49778th Page of 98TOC1stPreviousNextBottomJust 78th
[Enlarge/Download Table] =================================================================================================================================== MSIFT Investment MSIF Fixed Income III Grade Fixed Income Pro-Forma Portfolio Portfolio Combined Cusip Number Security Description(f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ ----------------------- --------------------- ------------------ ---------------- 902118AC2 0000000000 TYCO INTL GROUP SA 75,000.000 115,000.000 190,000.000 902118AK4 0000000000 TYCO INTL GROUP S A GTD N 120,000.000 0.000 120,000.000 902118AY4 0000000000 TYCO INTL GROP S A GTD NT 525,000.000 825,000.000 1,350,000.000 902118BC1 0000000000 TYCO INTL GROUP 210,000.000 140,000.000 350,000.000 90332UAA1 0000000000 US AWYS PASS THRU TRS SER 0.000 0.020 0.020 90332UAJ2 0000000000 US AWYS PASS THRU TRS SER 0.000 620,236.010 620,236.010 90332UAN3 0000000000 US AWYS PASS THRU TRS 200 933,378.100 0.000 933,378.100 912795JA0 0000000000 UNITED STATES TREASURY BI 10,000,000.000 0.000 10,000,000.000 912795JF9 0000000000 UNITED STATES TREASURY BI 30,000,000.000 5,000,000.000 35,000,000.000 912795JQ5 0000000000 UNITED STATES TREASURY BI 0.000 1,150,000.000 1,150,000.000 912810EK0 0000000000 UNITED STATES TREASURY BO 3,325,000.000 0.000 3,325,000.000 9128276D9 0000000000 UNITED STATES TREASURY NO 9,000,000.000 0.000 9,000,000.000 912827T85 0000000000 UNITED STATES TREASURY NO 2,250,000.000 0.000 2,250,000.000 92344RAA0 0000000000 VERIZON NEW ENG INC DEB 610,000.000 0.000 610,000.000 92857TAG2 0000000000 VODAFONE AIRTOUCH PLC NT 715,000.000 275,000.000 990,000.000 92857TAH0 0000000000 VODAFONE AIRTOUCH PLC NT 0.000 600,000.000 600,000.000 931142BN2 0000000000 WAL MART STORES SR UNSECD 1,420,000.000 0.000 1,420,000.000 939322AE3 0000000000 WASHINGTON MUT INC SUB NT 0.000 365,000.000 365,000.000 94973HAB4 0000000000 WELLPOINT HEALTH NETWORKS 310,000.000 425,000.000 735,000.000 969457BB5 0000000000 WILLIAMS COS INC DEB SER 665,000.000 650,000.000 1,315,000.000 969457BD1 0000000000 WILLIAMS COS INC SR NT 110,000.000 150,000.000 260,000.000 981468AA9 0000000000 WORLD FINL PPTYS TOWER B 3,291,236.128 2,381,815.650 5,673,051.778 98155KAJ1 0000000000 WORLDCOM INC GA NT 0.000 1,575,000.000 1,575,000.000 98157DAD8 0000000000 WORLDCOM INC GA NEW NT 1,750,000.000 0.000 1,750,000.000 98157DAK2 0000000000 WORLDCOM INC GA NEW NT 0.000 590,000.000 590,000.000 9900032BB 0000000000 MAR 02 TREASURY BONDS-CBT* 0.000 (156.000) (156.000) 9900032BE 0000000000 MAR 02 5 YEAR T NOTES-CBT* 0.000 (173.000) (173.000) 9900032BF 0000000000 MAR 02 10 YEAR T NOTES-CB* 0.000 (101.000) (101.000) BOS161ABL 0000000000 JPM CHASE POOLED REPO 7,860,000.000 0.000 7,860,000.000 BOS161ABQ 0000000000 JPMC POOLED REPO(MAS)1.65 0.000 23,723,000.000 23,723,000.000 --------------- --------------- --------------- Totals 326,952,562.242 426,887,798.168 753,840,360.410 =================================================================================================================================== MSIF Fixed MSIFT Investment Income III Grade Fixed Income Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description(f) Market Value Market Value Market Value % of Net Assets ------------ ----------------------- ------------ ------------------ ------------------ --------------- 902118AC2 0000000000 TYCO INTL GROUP SA 72,559.80 110,377.81 182,937.61 0.04% 902118AK4 0000000000 TYCO INTL GROUP S A GTD N 115,119.96 0.00 115,119.96 0.02% 902118AY4 0000000000 TYCO INTL GROP S A GTD NT 527,109.45 824,051.25 1,351,160.70 0.26% 902118BC1 0000000000 TYCO INTL GROUP 205,154.88 136,019.52 341,174.40 0.07% 90332UAA1 0000000000 US AWYS PASS THRU TRS SER 0.00 0.02 0.02 0.00% 90332UAJ2 0000000000 US AWYS PASS THRU TRS SER 0.00 639,724.63 639,724.63 0.12% 90332UAN3 0000000000 US AWYS PASS THRU TRS 200 935,423.50 0.00 935,423.50 0.18% 912795JA0 0000000000 UNITED STATES TREASURY BI 9,999,038.89 0.00 9,999,038.89 1.94% 912795JF9 0000000000 UNITED STATES TREASURY BI 29,949,761.40 4,991,406.60 34,941,168.00 6.77% 912795JQ5 0000000000 UNITED STATES TREASURY BI 0.00 1,143,885.02 1,143,885.02 0.22% 912810EK0 0000000000 UNITED STATES TREASURY BO 4,246,656.75 0.00 4,246,656.75 0.82% 9128276D9 0000000000 UNITED STATES TREASURY NO 9,784,710.00 0.00 9,784,710.00 1.90% 912827T85 0000000000 UNITED STATES TREASURY NO 2,427,885.00 0.00 2,427,885.00 0.47% 92344RAA0 0000000000 VERIZON NEW ENG INC DEB 620,183.95 0.00 620,183.95 0.12% 92857TAG2 0000000000 VODAFONE AIRTOUCH PLC NT 785,281.64 299,539.63 1,084,821.27 0.21% 92857TAH0 0000000000 VODAFONE AIRTOUCH PLC NT 0.00 672,229.20 672,229.20 0.13% 931142BN2 0000000000 WAL MART STORES SR UNSECD 1,453,240.78 0.00 1,453,240.78 0.28% 939322AE3 0000000000 WASHINGTON MUT INC SUB NT 0.00 402,082.18 402,082.18 0.08% 94973HAB4 0000000000 WELLPOINT HEALTH NETWORKS 316,135.83 431,683.55 747,819.38 0.14% 969457BB5 0000000000 WILLIAMS COS INC DEB SER 647,850.98 619,019.70 1,266,870.68 0.25% 969457BD1 0000000000 WILLIAMS COS INC SR NT 110,336.82 147,087.90 257,424.72 0.05% 981468AA9 0000000000 WORLD FINL PPTYS TOWER B 3,320,034.44 2,393,724.73 5,713,759.17 1.11% 98155KAJ1 0000000000 WORLDCOM INC GA NT 0.00 1,412,288.33 1,412,288.33 0.27% 98157DAD8 0000000000 WORLDCOM INC GA NEW NT 1,881,885.25 0.00 1,881,885.25 0.36% 98157DAK2 0000000000 WORLDCOM INC GA NEW NT 0.00 612,614.11 612,614.11 0.12% 9900032BB 0000000000 MAR 02 TREASURY BONDS-CBT 0.00 (15,682,875.00) (15,682,875.00) -3.04% 9900032BE 0000000000 MAR 02 5 YEAR T NOTES-CBT 0.00 (18,219,062.50) (18,219,062.50) -3.53% 9900032BF 0000000000 MAR 02 10 YEAR T NOTES-CB 0.00 (10,557,656.25) (10,557,656.25) -2.05% BOS161ABL 0000000000 JPM CHASE POOLED REPO 7,860,000.00 0.00 7,860,000.00 1.52% BOS161ABQ 0000000000 JPMC POOLED REPO(MAS)1.65 0.00 23,723,000.00 23,723,000.00 4.60% -------------- -------------- ---------------- -------- Totals 313,006,621.93 323,958,586.86 636,965,208.868 123.501% ---------------- Total Net Assets 515,758,126.58 * Total Market Value denoted above is lower than the Statement of Assets and Liabilities due to the inclusion of derivative instruments (futures and swaps) held by MSIFT Investment Grade Fixed Income Portfolio. 23
49779th Page of 98TOC1stPreviousNextBottomJust 79th
Morgan Stanley Institutional Fund Trust Pro Forma Combined Statement of Assets & Liabilities December 31, 2001 (Unaudited) [Enlarge/Download Table] ------------------------------------------------------------------------ MSIF MSIFT Pro Forma Fixed Income III Investment Grade Fixed Combined Portfolio Income Portfolio Adjustments Portfolio (000) (000) (000) (000) ------------------------------------------------------------------------ Assets Investments, at Cost -- see accompanying Portfolio of Investments $311,792 $395,583 $0 $707,375 ======================================================================== Investments, at Value 313,094 398,834 0 711,928 Cash 88 (337) 0 (249) Interest Receivable 1,656 2,370 0 4,026 Receivable for Investments Sold 1,013 4,602 0 5,615 Receivable for Portfolio Shares Sold 115 167 0 282 Receivable Due from Investment Advisor 51 0 0 51 Prepaid Expenses 11 (1) 0 10 ------------------------------------------------------------------------ Total Assets 316,028 405,635 0 721,663 Liabilities Payable for Investments Purchased 74,134 107,437 0 181,571 Payable for Swaps 0 23,075 0 23,075 Payable for Futures Variation Margin 0 307 0 307 Payable for Portfolio Shares Redeemed 0 452 0 452 Payable for Merger Costs 0 0 55 (h) 55 Administrative Fees Payable 39 25 0 64 Blue Sky Fees Payable 0 8 0 8 Custodian Fees Payable 8 6 0 14 Directors Compensation Payable 22 30 0 52 Investment Advisory Fees Payable 0 259 0 259 Other Payables 1 8 0 9 Professional Fees Payable 20 12 0 32 Rule 12b-1 Fees Payable 1 0 0 1 Shareholder Reporting Expense Payable 5 1 0 6 ------------------------------------------------------------------------ Total Liabilities 74,230 131,620 55 205,905 ------------------------------------------------------------------------ Net Assets $241,798 $274,015 $0 $515,813 ======================================================================== Net Assets Consist Of: Paid-In Capital $240,192 $281,193 $0 $521,385 Undistributed Net Investment Loss (330) (118) (55) (h) (503) Accumulated Net Realized Gain/(Loss) 634 (10,730) 0 (10,096) Unrealized Appreciation/(Depreciation) of Investments 1,302 3,670 0 4,972 ------------------------------------------------------------------------ Net Assets $241,798 $274,015 $(55) $515,758 ======================================================================== Net Asset Value Per Share -- Institutional Class Net Assets -- Institutional Class $238,950 $274,015 $(55) (h) $512,910 Shares Outstanding -- Institutional Class 21,735,416 24,617,097 (267,967) (a) 46,084,546 ------------------------------------------------------------------------ Net Asset Value Per Share -- Institutional Class $10.99 $11.13 (267,967) $11.13 ======================================================================== Net Asset Value Per Share -- Adviser Class Net Assets -- Advisor Class $2,848 $0 $0 $2,848 Shares Outstanding -- Adviser Class 259,488 0 0 (a) 259,488 ------------------------------------------------------------------------ Net Asset Value Per Share -- Adviser Class $10.98 $0.00 $0 $10.98 ======================================================================== See Notes to Pro Forma Combined Financial Statements
49780th Page of 98TOC1stPreviousNextBottomJust 80th
Morgan Stanley Institutional Fund Trust Pro Forma Combined Statement of Operations December 31, 2001 (Unaudited) [Enlarge/Download Table] -------------------------------------------------------------------------- MSIF MSIFT Pro Forma Fixed Income III Investment Grade Fixed Combined Portfolio Income Portfolio Adjustments Portfolio (000) (000) (000) (000) -------------------------------------------------------------------------- Investment Income Dividends $0 $0 $0 $0 Interest 12,368 19,570 0 31,938 -------------------------------------------------------------------------- Total Investment Income 12,368 19,570 0 31,938 Expenses Investment Advisory Fees 766 1,070 98 (b) 1,934 Less: Fees Waived (248) 0 248 (g) 0 Shareholder Reporting Fees 11 9 (3) (e) 17 Administrative Fees 338 242 (167) (c) 413 Professional Fees 31 34 (24) (e) 41 Custodian Fees 37 31 (10) (e) 58 Directors' Fees and Expenses 9 4 (6) (e) 7 Rule 12b-1 Fees 4 0 (0) (d) 4 Registration Fees 33 25 (11) (e) 47 Merger Costs 0 0 55 (h) 55 Other Expenses 14 7 (14) (e) 7 -------------------------------------------------------------------------- Net Expenses 995 1,422 166 2,583 -------------------------------------------------------------------------- Net Investment Income 11,373 18,148 (166) 29,355 Net Realized Gain/(Loss) on: Foreign Currency 22 3 0 25 Futures 0 (1,301) 0 (1,301) Investments Sold 4,914 5,639 0 10,553 -------------------------------------------------------------------------- Change in Unrealized Appreciation/(Depreciation) on Foreign Currency and Investments 1,926 4,398 0 6,324 -------------------------------------------------------------------------- Net Realized Gain/(Loss) and Change in Unrealized Appreciation/(Depreciation) 6,862 10,040 0 16,902 -------------------------------------------------------------------------- Net Increase/(Decrease) in Net Assets Resulting from Operations $18,235 $28,188 $(111) $46,312 ========================================================================== See Notes to Pro Forma Combined Financial Statements
49781st Page of 98TOC1stPreviousNextBottomJust 81st
Morgan Stanley Institutional Fund Trust Pro Forma Combined Notes to Financial Statements December 31, 2001 (Unaudited) Pro forma financial information is intended to provide shareholders of MSIF Fixed Income III Portfolio and MSIFT Investment Grade Fixed Income Portfolio with information about the impact of the proposed merger by indicating how the merger might have affected the information had the merger been consummated as of December 31, 2001. The pro forma combined statements of assets and liabilities and of operations as of December 31, 2001 have been prepared to reflect the merger of MSIF Fixed Income III Portfolio and MSIFT Investment Grade Fixed Income Portfolio after giving effect to pro forma adjustments described in the notes below. (a) Acquisition by MSIFT Investment Grade Fixed Income Portfolio of MSIF Fixed Income III Portfolio and issuance of MSIFT Investment Grade Fixed Income Portfolio shares in exchange for all of the outstanding shares of MSIF Fixed Income III Portfolio. (b) Investment Advisory fees were adjusted to reflect the application of the fee structure for MSIFT Investment Grade Fixed Income Portfolio (0.375% of average daily net assets). (c) Administration fees were adjusted to reflect the application of the fee structure for MSIFT Investment Grade Fixed Income Portfolio (0.08% of average daily net assets). (d) Rule 12b-1 fees were adjusted to reflect the application of the fee structure for MSIFT Investment Grade Fixed Income Portfolio (0.15% of Class B average daily net assets). (e) Certain pro forma basis expenses reflect actual expenses incurred by the individual Portfolios, adjusted to reflect estimated cost savings arising from the merger or, in some cases, additional costs. (f) No realignment of the portfolios is expected in connection with the merger. (g) Adjustment made reflects the fact that MSIFT Investment Grade Fixed Income Portfolio has no expense limitation. (h) Amount represents 1/3 of the total estimated costs expected to be incurred in connection with the merger.
49782nd Page of 98TOC1stPreviousNextBottomJust 82nd
Morgan Stanley Institutional Fund Trust/Morgan Stanley Institutional Fund, Inc. Pro-Forma Combined Portfolio of Investments Acquiring Portfolio: MSIFT, Inc. -- High Yield Portfolio Target Portfolio: MSIF, Inc. -- High Yield II Portfolio As Of December 31, 2001 (Unaudited) [Enlarge/Download Table] =================================================================================================================================== MSIF High Yield II MSIFT High Yield Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description(f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ ----------------------- ------------------ ---------------- ------------------ 00178DAC1 0000000000 AMSC ACQUISITION INC SR N 1,090,000.000 0.000 1,090,000.000 00178DACA 0000000000 AMSC ACQUISITION INC SR N 0.000 8,230,000.000 8,230,000.000 003910AD8 0000000000 ACETEX CORP SR NT 144A 240,000.000 1,640,000.000 1,880,000.000 006848AP0 0000000000 ADELPHIA COMMUNICATIONS 700,000.000 0.000 700,000.000 006848AU9 0000000000 ADELPHIA COMMUNICATIONS 1,400,000.000 7,445,000.000 8,845,000.000 006848BC8 0000000000 ADELPHIA COMMUNICATIONS 1,035,000.000 7,400,000.000 8,435,000.000 006848BD6 0000000000 ADELPHIA COMMUNICATIONS 365,000.000 0.000 365,000.000 006848BF1 0000000000 ADELPHIA COMMUNICATIONS C 350,000.000 0.000 350,000.000 00817YAB4 0000000000 AETNA INC NEW SR NT 1,420,000.000 6,880,000.000 8,300,000.000 008911AJ8 0000000000 AIR CDA INC SR NT 1,475,000.000 8,500,000.000 9,975,000.000 01853EAA3 0000000000 ALLIANCE ATLANTIC COMMUNI 1,200,000.000 6,850,000.000 8,050,000.000 01958XAS6 0000000000 ALLIED WASTE NORTH AMER I 1,205,000.000 6,000,000.000 7,205,000.000 03073QAA6 0000000000 AMERISOURCEBERGEN CORP 210,000.000 0.000 210,000.000 036734AC5 0000000000 ANTHEM INS COS INC SURPLU 1,245,000.000 7,560,000.000 8,805,000.000 05329WAA0 0000000000 AUTONATION INC DEL SR 545,000.000 2,935,000.000 3,480,000.000 072699AA9 0000000000 BAYAN TELECOMMUNICATIONS 980,000.000 7,255,000.000 8,235,000.000 07556QAE5 0000000000 BEAZER HOMES USA INC SR N 1,040,000.000 6,500,000.000 7,540,000.000 080555AG0 0000000000 BELO CORP SR NT 325,000.000 1,550,000.000 1,875,000.000 09641PAA8 0000000000 BLUM CB CORP SR SUB NT 0.000 4,680,000.000 4,680,000.000 111013AB4 0000000000 BRITISH SKY BROADCASTING 220,000.000 6,410,000.000 6,630,000.000 111013AD0 0000000000 BRITISH SKY 2,770,000.000 5,800,000.000 8,570,000.000 111201AB5 0000000000 BRL UNVL EQUIP 2001 A L P 700,000.000 4,735,000.000 5,435,000.000 11161P205 0000000000 BROADWING COMMUNICATIONS 1,800.000 10,664.000 12,464.000 =================================================================================================================================== MSIF High Yield II MSIFT High Yield Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description(f) Market Value Market Value Market Value % of Net Assets ------------ ----------------------- ------------------ ---------------- ------------------ --------------- 00178DAC1 0000000000 AMSC ACQUISITION INC SR N 337,900.00 0.00 337,900.00 0.04% 00178DACA 0000000000 AMSC ACQUISITION INC SR N 0.00 2,633,600.00 2,633,600.00 0.33% 003910AD8 0000000000 ACETEX CORP SR NT 144A 240,000.00 1,640,000.00 1,880,000.00 0.24% 006848AP0 0000000000 ADELPHIA COMMUNICATIONS 693,875.00 0.00 693,875.00 0.09% 006848AU9 0000000000 ADELPHIA COMMUNICATIONS 1,296,750.00 6,886,625.00 8,183,375.00 1.03% 006848BC8 0000000000 ADELPHIA COMMUNICATIONS 943,143.75 6,734,000.00 7,677,143.75 0.97% 006848BD6 0000000000 ADELPHIA COMMUNICATIONS 334,431.25 0.00 334,431.25 0.04% 006848BF1 0000000000 ADELPHIA COMMUNICATIONS C 357,437.50 0.00 357,437.50 0.05% 00817YAB4 0000000000 AETNA INC NEW SR NT 1,398,523.92 6,742,620.16 8,141,144.08 1.03% 008911AJ8 0000000000 AIR CDA INC SR NT 942,156.25 5,429,375.00 6,371,531.25 0.80% 01853EAA3 0000000000 ALLIANCE ATLANTIC COMMUNI 1,296,000.00 7,398,000.00 8,694,000.00 1.10% 01958XAS6 0000000000 ALLIED WASTE NORTH AMER I 1,241,150.00 6,180,000.00 7,421,150.00 0.94% 03073QAA6 0000000000 AMERISOURCEBERGEN CORP 215,250.00 0.00 215,250.00 0.03% 036734AC5 0000000000 ANTHEM INS COS INC SURPLU 1,337,898.17 8,088,005.52 9,425,903.69 1.19% 05329WAA0 0000000000 AUTONATION INC DEL SR 554,537.50 2,986,362.50 3,540,900.00 0.45% 072699AA9 0000000000 BAYAN TELECOMMUNICATIONS 171,500.00 1,269,625.00 1,441,125.00 0.18% 07556QAE5 0000000000 BEAZER HOMES USA INC SR N 1,073,800.00 6,711,250.00 7,785,050.00 0.98% 080555AG0 0000000000 BELO CORP SR NT 331,936.48 1,575,210.75 1,907,147.23 0.24% 09641PAA8 0000000000 BLUM CB CORP SR SUB NT 0.00 4,001,400.00 4,001,400.00 0.50% 111013AB4 0000000000 BRITISH SKY BROADCASTING 210,704.56 6,111,050.42 6,321,754.98 0.80% 111013AD0 0000000000 BRITISH SKY 2,850,781.51 5,941,601.20 8,792,382.71 1.11% 111201AB5 0000000000 BRL UNVL EQUIP 2001 A L P 728,000.00 4,924,400.00 5,652,400.00 0.71% 11161P205 0000000000 BROADWING COMMUNICATIONS 1,143,000.00 6,931,600.00 8,074,600.00 1.02% 1
49783rd Page of 98TOC1stPreviousNextBottomJust 83rd
[Enlarge/Download Table] =================================================================================================================================== MSIF High Yield II MSIFT High Yield Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description(f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ ----------------------- ------------------ ---------------- ------------------ 12489LAB4 0000000000 CB RICHARD ELLIS SVCS 795,000.000 0.000 795,000.000 125896AH3 0000000000 CMS ENERGY SENIOR NOTES 80,000.000 430,000.000 510,000.000 126304AC8 0000000000 CSC HLDGS INC SR NT 400,000.000 0.000 400,000.000 126304AN4 0000000000 CSC HLDGS INC SR NT 144A 0.000 515,000.000 515,000.000 126304AP9 0000000000 CSC HLDGS INC SR NT 935,000.000 0.000 935,000.000 126433AB7 0000000000 CTI HLDGS S A SR DEFD CPN 1,500,000.000 11,170,000.000 12,670,000.000 12673GAA3 0000000000 CA FM LEASE TR SR SECD NT 817,962.179 6,292,016.450 7,109,978.629 12686NAC9 0000000000 CABLEVISION S A NT 465,000.000 3,965,000.000 4,430,000.000 131096AD1 0000000000 CALLAHAN NRH 1,925,000.000 11,975,000.000 13,900,000.000 131347AW6 0000000000 CALPINE CORP NT 1,120,000.000 5,570,000.000 6,690,000.000 147433AA4 0000000000 CASE CR CORP 380,000.000 2,100,000.000 2,480,000.000 14743RAF0 0000000000 CASE CORP 335,000.000 1,710,000.000 2,045,000.000 15134QAB5 0000000000 CENTENNIAL CELLULAR OPER 1,500,000.000 8,410,000.000 9,910,000.000 152312AG9 0000000000 CENTEX CORP SR NT 1,375,000.000 7,115,000.000 8,490,000.000 16117PAL4 0000000000 CHARTER COMMUNICATIONS 1,660,000.000 6,545,000.000 8,205,000.000 165167AS6 0000000000 CHESAPEAKE ENERGY CORP SR 1,860,000.000 7,100,000.000 8,960,000.000 172921HN1 0000000000 CITICORP MTG SECS INC 0.000 241,315.600 241,315.600 194832AA9 0000000000 COLLINS & AIKMAN PRODS CO 135,000.000 700,000.000 835,000.000 194832AB7 0000000000 COLLINS & AIKMAN PRODS CO 595,000.000 2,760,000.000 3,355,000.000 195325AR6 0000000000 195325AU9REP GLOBAL BD 950,000.000 4,415,000.000 5,365,000.000 197677AF4 0000000000 COLUMBIA / HCA HEALTHCARE 425,000.000 0.000 425,000.000 197677AG2 0000000000 COLUMBIA / HCA HEALTHCARE 1,800,000.000 9,535,000.000 11,335,000.000 19767QAC9 0000000000 COLUMBIA/HCA HEALTHCARE C 895,000.000 0.000 895,000.000 19767QAQ8 0000000000 COLUMBIA / HCA HEALTHCARE 600,000.000 660,000.000 1,260,000.000 219350AJ4 0000000000 CORNING INC ZERO CPN CONV 270,000.000 1,920,000.000 2,190,000.000 =================================================================================================================================== MSIF High Yield II MSIFT High Yield Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description(f) Market Value Market Value Market Value % of Net Assets ------------ ----------------------- ------------------ ----------------- ------------------ --------------- 12489LAB4 0000000000 CB RICHARD ELLIS SVCS 679,725.00 0.00 679,725.00 0.09% 125896AH3 0000000000 CMS ENERGY SENIOR NOTES 78,308.00 418,405.05 496,713.05 0.06% 126304AC8 0000000000 CSC HLDGS INC SR NT 412,164.40 0.00 412,164.40 0.05% 126304AN4 0000000000 CSC HLDGS INC SR NT 144A 0.00 512,460.02 512,460.02 0.06% 126304AP9 0000000000 CSC HLDGS INC SR NT 936,288.43 0.00 936,288.43 0.12% 126433AB7 0000000000 CTI HLDGS S A SR DEFD CPN 150,000.00 1,117,000.00 1,267,000.00 0.16% 12673GAA3 0000000000 CA FM LEASE TR SR SECD NT 831,335.86 6,417,856.78 7,249,192.64 0.91% 12686NAC9 0000000000 CABLEVISION S A NT 93,000.00 793,000.00 886,000.00 0.11% 131096AD1 0000000000 CALLAHAN NRH 1,270,500.00 7,903,500.00 9,174,000.00 1.16% 131347AW6 0000000000 CALPINE CORP NT 1,019,164.16 4,984,247.66 6,003,411.82 0.76% 147433AA4 0000000000 CASE CR CORP 358,218.40 1,978,863.60 2,337,082.00 0.29% 14743RAF0 0000000000 CASE CORP 312,137.59 1,592,328.06 1,904,465.65 0.24% 15134QAB5 0000000000 CENTENNIAL CELLULAR OPER 1,260,000.00 7,064,400.00 8,324,400.00 1.05% 152312AG9 0000000000 CENTEX CORP SR NT 1,400,782.63 7,212,987.78 8,613,770.41 1.09% 16117PAL4 0000000000 CHARTER COMMUNICATIONS 1,701,500.00 6,692,262.50 8,393,762.50 1.06% 165167AS6 0000000000 CHESAPEAKE ENERGY CORP SR 1,804,200.00 6,887,000.00 8,691,200.00 1.10% 172921HN1 0000000000 CITICORP MTG SECS INC 0.00 119,774.58 119,774.58 0.02% 194832AA9 0000000000 COLLINS & AIKMAN PRODS CO 131,625.00 682,500.00 814,125.00 0.10% 194832AB7 0000000000 COLLINS & AIKMAN PRODS CO 597,975.00 2,766,900.00 3,364,875.00 0.42% 195325AR6 0000000000 195325AU9REP GLOBAL BD 971,375.00 4,514,337.50 5,485,712.50 0.69% 197677AF4 0000000000 COLUMBIA / HCA HEALTHCARE 437,213.65 0.00 437,213.65 0.06% 197677AG2 0000000000 COLUMBIA / HCA HEALTHCARE 1,753,446.60 9,221,632.23 10,975,078.83 1.38% 19767QAC9 0000000000 COLUMBIA/HCA HEALTHCARE C 946,674.62 0.00 946,674.62 0.12% 19767QAQ8 0000000000 COLUMBIA / HCA HEALTHCARE 568,195.80 620,389.44 1,188,585.24 0.15% 219350AJ4 0000000000 CORNING INC ZERO CPN CONV 139,725.00 993,600.00 1,133,325.00 0.14% 2
49784th Page of 98TOC1stPreviousNextBottomJust 84th
[Enlarge/Download Table] =================================================================================================================================== MSIF High Yield II MSIFT High Yield Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description(f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ ----------------------- ------------------ ---------------- ------------------ 2322779 0000000000 HMV MEDIA GROUP 0.000 2,875,000.000 2,875,000.000 2324311 0000000000 NTL INC 0.000 14,645,000.000 14,645,000.000 232928AA9 0000000000 DR STRUCTURED FIN CORP SE 508,839.949 2,479,312.260 2,988,152.209 232928AC5 0000000000 DR STRUCTURED FIN CORP SE 0.000 72,161.820 72,161.820 232928AD3 0000000000 DR STRUCTURED FIN CORP SE 700,000.000 1,705,000.000 2,405,000.000 23331AAD1 0000000000 D.R. HORTON INC SENIOR NO 695,000.000 4,210,000.000 4,905,000.000 235811AN6 0000000000 DANA CORP NT 144A 710,000.000 4,520,000.000 5,230,000.000 256072505 0000000000 DOBSON COMMUNICATIONS COR 2,406.820 12,542.890 14,949.710 256886AE2 0000000000 DOLPHIN TELECOM PLC SR DI 2,425,000.000 0.000 2,425,000.000 256886AH5 0000000000 DOLPHIN TELECOM PLC SR DI 300,000.000 4,395,000.000 4,695,000.000 27876GAG3 0000000000 ECHOSTAR DBS CORP SR NT 500,000.000 2,790,000.000 3,290,000.000 27876GAH1 0000000000 ECHOSTAR DBS CORP SR NT 615,000.000 2,100,000.000 2,715,000.000 29255UAA2 0000000000 ENCOMPASS SVCS CORP SR SU 755,000.000 4,360,000.000 5,115,000.000 29444NAF9 0000000000 EQUISTAR CHEMICALS LP 440,000.000 2,255,000.000 2,695,000.000 29665WAA2 0000000000 ESPRIT TELECOM PLC SR NT 600,000.000 0.000 600,000.000 29665WAF1 0000000000 ESPRIT TELECOM GROUP PLC 965,000.000 0.000 965,000.000 302088AL3 0000000000 EXODUS COMMUNICATIONS I 1,870,000.000 10,990,000.000 12,860,000.000 303727AG6 0000000000 FAIRCHILD SEMICONDUCTO 380,000.000 1,895,000.000 2,275,000.000 33938EAF4 0000000000 FLEXTRONICS INTL LTD US$ 150,000.000 700,000.000 850,000.000 34354PAB1 0000000000 FLOWSERVE CORP US$ SR SUB 750,000.000 5,177,000.000 5,927,000.000 344155106 0000000000 FOCAL COMMUNICATIONS CORP 463,619.000 2,519,953.004 2,983,572.004 344155AC0 0000000000 FOCAL COMMUNICATIONS CORP 796,000.000 4,264,000.000 5,060,000.000 344155AE6 0000000000 FOCAL COMMUNICATIONS 1,332,000.000 7,468,000.000 8,800,000.000 345370CA6 0000000000 FORD MTR CO DEL GLOBAL LA 900,000.000 3,460,000.000 4,360,000.000 345397TY9 0000000000 FORD MTR CR CO 380,000.000 1,490,000.000 1,870,000.000 35802N303 0000000000 FRESENIUS MED CARE CAP TR 1,800,000.000 4,440,000.000 6,240,000.000 35802QAB4 0000000000 FRESENIUS MED CARE CAP 350,000.000 0.000 350,000.000 35802W204 0000000000 FRESENTUS MED CARE CAP TR 0.000 5,900,000.000 5,900,000.000 =================================================================================================================================== MSIF High Yield II MSIFT High Yield Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description(f) Market Value Market Value Market Value % of Net Assets ------------ ----------------------- ------------------ ---------------- ------------------ --------------- 2322779 0000000000 HMV MEDIA GROUP 0.00 3,882,821.92 3,882,821.92 0.49% 2324311 0000000000 NTL INC 0.00 5,316,870.22 5,316,870.22 0.67% 232928AA9 0000000000 DR STRUCTURED FIN CORP SE 340,159.51 1,657,990.49 1,998,150.00 0.25% 232928AC5 0000000000 DR STRUCTURED FIN CORP SE 0.00 56,667.23 56,667.23 0.01% 232928AD3 0000000000 DR STRUCTURED FIN CORP SE 393,750.00 967,263.55 1,361,013.55 0.17% 23331AAD1 0000000000 D.R. HORTON INC SENIOR NO 688,050.00 4,167,900.00 4,855,950.00 0.61% 235811AN6 0000000000 DANA CORP NT 144A 660,144.51 4,131,492.44 4,791,636.95 0.60% 256072505 0000000000 DOBSON COMMUNICATIONS COR 2,346,649.50 12,229,317.75 14,575,967.25 1.84% 256886AE2 0000000000 DOLPHIN TELECOM PLC SR DI 242.50 0.00 242.50 0.00% 256886AH5 0000000000 DOLPHIN TELECOM PLC SR DI 30.00 439.50 469.50 0.00% 27876GAG3 0000000000 ECHOSTAR DBS CORP SR NT 515,000.00 2,873,700.00 3,388,700.00 0.43% 27876GAH1 0000000000 ECHOSTAR DBS CORP SR NT 616,537.50 2,105,250.00 2,721,787.50 0.34% 29255UAA2 0000000000 ENCOMPASS SVCS CORP SR SU 490,750.00 2,834,000.00 3,324,750.00 0.42% 29444NAF9 0000000000 EQUISTAR CHEMICALS LP 442,200.00 2,266,275.00 2,708,475.00 0.34% 29665WAA2 0000000000 ESPRIT TELECOM PLC SR NT 1,500.00 0.00 1,500.00 0.00% 29665WAF1 0000000000 ESPRIT TELECOM GROUP PLC 2,412.50 0.00 2,412.50 0.00% 302088AL3 0000000000 EXODUS COMMUNICATIONS I 336,600.00 2,088,100.00 2,424,700.00 0.31% 303727AG6 0000000000 FAIRCHILD SEMICONDUCTO 403,750.00 2,013,437.50 2,417,187.50 0.30% 33938EAF4 0000000000 FLEXTRONICS INTL LTD US$ 157,500.00 735,000.00 892,500.00 0.11% 34354PAB1 0000000000 FLOWSERVE CORP US$ SR SUB 836,250.00 5,772,355.00 6,608,605.00 0.83% 344155106 0000000000 FOCAL COMMUNICATIONS CORP 282,807.59 1,511,971.80 1,794,779.39 0.23% 344155AC0 0000000000 FOCAL COMMUNICATIONS CORP 222,880.00 1,193,920.00 1,416,800.00 0.18% 344155AE6 0000000000 FOCAL COMMUNICATIONS 546,120.00 3,061,880.00 3,608,000.00 0.45% 345370CA6 0000000000 FORD MTR CO DEL GLOBAL LA 824,569.20 3,145,970.40 3,970,539.60 0.50% 345397TY9 0000000000 FORD MTR CR CO 369,787.88 1,442,092.03 1,811,879.91 0.23% 35802N303 0000000000 FRESENIUS MED CARE CAP TR 1,804,500.00 4,451,100.00 6,255,600.00 0.79% 35802QAB4 0000000000 FRESENIUS MED CARE CAP 348,250.00 0.00 348,250.00 0.04% 35802W204 0000000000 FRESENTUS MED CARE CAP TR 0.00 6,077,000.00 6,077,000.00 0.77% 3
49785th Page of 98TOC1stPreviousNextBottomJust 85th
[Enlarge/Download Table] =================================================================================================================================== MSIF High Yield II MSIFT High Yield Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description(f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ ----------------------- ------------------ ---------------- ------------------ 361849AB8 0000000000 GMAC COML MTG SEC INC 0.000 8,517,427.650 8,517,427.650 36227TAM9 0000000000 GS ESCROW CORP SR NT 1,220,000.000 6,350,000.000 7,570,000.000 362359101 0000000000 WT GT GROUP TELECOM INC E 32,000.000 200,850.000 232,850.000 362359AC5 0000000000 GT GROUP TELECOM INC SR N 3,200,000.000 20,085,000.000 23,285,000.000 370425RZ5 0000000000 GENERAL MTRS ACCEP CORP N 645,000.000 1,615,000.000 2,260,000.000 378275AB7 0000000000 GLENCORE NICKEL PTY LTD S 435,000.000 3,680,000.000 4,115,000.000 37931KABA 0000000000 GLOBAL CROSSING HLDGS LTD 1,265,000.000 280,000.000 1,545,000.000 37931KAJA 0000000000 GLOBAL CROSSING HLDGS LTD 280,000.000 22,335,000.000 22,615,000.000 379363AK0 0000000000 GLOBALSTAR L P / GLOBALST 1,175,000.000 7,025,000.000 8,200,000.000 379363AR5 0000000000 GLOBALSTAR L P / GLOBALST 310,000.000 0.000 310,000.000 379364128 0000000000 WTS GLOBALSTAR TELECOMMUN 600.000 4,780.000 5,380.000 37957FAC5 0000000000 GLOBIX CORP SR NT 1,865,000.000 11,800,000.000 13,665,000.000 40050BAA8 0000000000 GRUPO IUSACELL S A DE C V 750,000.000 6,000,000.000 6,750,000.000 40423QAE7 0000000000 HMH PPTYS INC SR NT SER A 675,000.000 6,385,000.000 7,060,000.000 40423QAF4 0000000000 HMH PPTYS INC SR NT SER B 175,000.000 490,000.000 665,000.000 404246AC4 0000000000 HMV MEDIA GROUP PLC US$ S 1,355,000.000 3,060,000.000 4,415,000.000 41078TAA5 0000000000 HANOVER EQUIP TR 2001A 200,000.000 1,200,000.000 1,400,000.000 41078TAC1 0000000000 HANOVER EQUIP TR 2001B SR 190,000.000 1,295,000.000 1,485,000.000 413627AF7 0000000000 HARRAHS OPER INC GTD S 0.000 6,220,000.000 6,220,000.000 413627AH3 0000000000 HARRAHS OPER INC GTD S 1,965,000.000 0.000 1,965,000.000 4152178 0000000000 BRAZIL(FED REP OF) 1,767,073.350 8,970,821.850 10,737,895.200 420781ABA 0000000000 HAYES LEMMERZ INTL INC SR 2,750,000.000 13,650,000.000 16,400,000.000 420804AG1 0000000000 HAYES WHEELS INTL INC DEL 0.000 2,460,000.000 2,460,000.000 42222GAC2 0000000000 HEALTH NET INC SR NT 1,275,000.000 6,000,000.000 7,275,000.000 =================================================================================================================================== MSIF High Yield II MSIFT High Yield Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description(f) Market Value Market Value Market Value % of Net Assets ------------ ----------------------- ------------------ ---------------- ------------------ --------------- 361849AB8 0000000000 GMAC COML MTG SEC INC 0.00 464,284.98 464,284.98 0.06% 36227TAM9 0000000000 GS ESCROW CORP SR NT 1,223,791.76 6,347,440.95 7,571,232.71 0.95% 362359101 0000000000 WT GT GROUP TELECOM INC E 16,000.00 100,425.00 116,425.00 0.01% 362359AC5 0000000000 GT GROUP TELECOM INC SR N 416,000.00 2,611,050.00 3,027,050.00 0.38% 370425RZ5 0000000000 GENERAL MTRS ACCEP CORP N 656,471.33 1,625,276.25 2,281,747.58 0.29% 378275AB7 0000000000 GLENCORE NICKEL PTY LTD S 239,250.00 2,024,000.00 2,263,250.00 0.29% 37931KABA 0000000000 GLOBAL CROSSING HLDGS LTD 145,475.00 30,800.00 176,275.00 0.02% 37931KAJA 0000000000 GLOBAL CROSSING HLDGS LTD 153,900.00 1,875,400.00 2,029,300.00 0.26% 379363AK0 0000000000 GLOBALSTAR L P / GLOBALST 82,250.00 491,750.00 574,000.00 0.07% 379363AR5 0000000000 GLOBALSTAR L P / GLOBALST 21,700.00 0.00 21,700.00 0.00% 379364128 0000000000 WTS GLOBALSTAR TELECOMMUN 6.00 478.00 484.00 0.00% 37957FAC5 0000000000 GLOBIX CORP SR NT 373,000.00 2,242,000.00 2,615,000.00 0.33% 40050BAA8 0000000000 GRUPO IUSACELL S A DE C V 806,250.00 6,450,000.00 7,256,250.00 0.91% 40423QAE7 0000000000 HMH PPTYS INC SR NT SER A 641,250.00 6,065,750.00 6,707,000.00 0.85% 40423QAF4 0000000000 HMH PPTYS INC SR NT SER B 161,437.50 452,025.00 613,462.50 0.08% 404246AC4 0000000000 HMV MEDIA GROUP PLC US$ S 1,178,850.00 2,662,200.00 3,841,050.00 0.48% 41078TAA5 0000000000 HANOVER EQUIP TR 2001A 208,000.00 1,248,000.00 1,456,000.00 0.18% 41078TAC1 0000000000 HANOVER EQUIP TR 2001B SR 196,650.00 1,340,325.00 1,536,975.00 0.19% 413627AF7 0000000000 HARRAHS OPER INC GTD S 0.00 6,376,010.04 6,376,010.04 0.80% 413627AH3 0000000000 HARRAHS OPER INC GTD S 2,024,174.01 0.00 2,024,174.01 0.26% 4152178 0000000000 BRAZIL(FED REP OF) 1,360,646.48 6,907,532.82 8,268,179.30 1.04% 420781ABA 0000000000 HAYES LEMMERZ INTL INC SR 123,750.00 614,250.00 738,000.00 0.09% 420804AG1 0000000000 HAYES WHEELS INTL INC DEL 0.00 110,700.00 110,700.00 0.01% 42222GAC2 0000000000 HEALTH NET INC SR NT 1,314,518.63 6,155,826.00 7,470,344.63 0.94% 4
49786th Page of 98TOC1stPreviousNextBottomJust 86th
[Enlarge/Download Table] =================================================================================================================================== MSIF High Yield II MSIFT High Yield Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description(f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ ----------------------- ------------------ ---------------- ------------------ 427516AB5 0000000000 HERMES EUROPE RAILTEL B V 900,000.000 5,210,000.000 6,110,000.000 427516AE9 0000000000 HERMES EUROPE RAILTEL B V 0.000 2,480,000.000 2,480,000.000 432848AH2 0000000000 HILTON HOTELS CORP SR NT 620,000.000 3,175,000.000 3,795,000.000 435573AA8 0000000000 HOLLINGER PARTN TR SR 690,000.000 3,580,000.000 4,270,000.000 44075LAH4 0000000000 HORSESHOE GAMING LLC SR S 1,825,000.000 6,450,000.000 8,275,000.000 44108EAK4 0000000000 HOST MARRIOTT L P SR NT S 535,000.000 0.000 535,000.000 4430056 0000000000 VIATEL INC 0.000 1,687,263.208 1,687,263.208 447012AB1 0000000000 HUNTSMAN ICI CHEMICALS LL 1,725,000.000 6,180,000.000 7,905,000.000 448096AG2 0000000000 HUSKY OIL LTD CAP SECS 1,745,000.000 8,055,000.000 9,800,000.000 44914KAE8 0000000000 HYPERION TELECOMMUNICATIO 1,510,000.000 11,080,000.000 12,590,000.000 44914KAH1 0000000000 HYPERION TELECOMMUNICATIO 0.000 1,000,000.000 1,000,000.000 450295AC4 0000000000 ISP CHEMCO INC / ISP CHEM 425,000.000 1,935,000.000 2,360,000.000 45337VAC4 0000000000 INDAH KIAT FIN MAURITIUS 2,350,000.000 10,750,000.000 13,100,000.000 458801404 0000000000 INTERMEDIA COMMUNICATIONS 643.000 3,304.000 3,947.000 458801AL1 0000000000 INTERMEDIA COMMUNICATIONS 1,575,000.000 250,000.000 1,825,000.000 459902AJ1 0000000000 INTERNATIONAL GAME TECHNO 1,185,000.000 6,025,000.000 7,210,000.000 46034HAA3 0000000000 INTERNATIONAL SPECIALT 665,000.000 3,515,000.000 4,180,000.000 46521PAA5 0000000000 ISTAR FINL INC SR NT 630,000.000 2,990,000.000 3,620,000.000 477122AD7 0000000000 JET EQUIP TR SER 1994-A C 1,050,000.000 3,050,000.000 4,100,000.000 477122AT2 0000000000 JET EQUIP TR CTF 1995-A C 0.000 2,050,000.000 2,050,000.000 48258WAF4 0000000000 K MART FDG CORP SECD LEAS 0.000 3,199,457.580 3,199,457.580 546347AB1 0000000000 LOUISIANA PACIFIC RES 265,000.000 1,665,000.000 1,930,000.000 546347AC9 0000000000 LOUISIANA-PAC CORP SR 810,000.000 4,330,000.000 5,140,000.000 =================================================================================================================================== MSIF High Yield II MSIFT High Yield Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description(f) Market Value Market Value Market Value % of Net Assets ------------ ----------------------- ------------------ ---------------- ------------------ --------------- 427516AB5 0000000000 HERMES EUROPE RAILTEL B V 81,000.00 468,900.00 549,900.00 0.07% 427516AE9 0000000000 HERMES EUROPE RAILTEL B V 0.00 223,200.00 223,200.00 0.03% 432848AH2 0000000000 HILTON HOTELS CORP SR NT 615,953.88 3,139,798.78 3,755,752.66 0.47% 435573AA8 0000000000 HOLLINGER PARTN TR SR 573,562.50 2,975,875.00 3,549,437.50 0.45% 44075LAH4 0000000000 HORSESHOE GAMING LLC SR S 1,884,312.50 6,659,625.00 8,543,937.50 1.08% 44108EAK4 0000000000 HOST MARRIOTT L P SR NT S 514,937.50 0.00 514,937.50 0.06% 4430056 0000000000 VIATEL INC 0.00 930.20 930.20 0.00% 447012AB1 0000000000 HUNTSMAN ICI CHEMICALS LL 1,656,000.00 5,932,800.00 7,588,800.00 0.96% 448096AG2 0000000000 HUSKY OIL LTD CAP SECS 1,821,287.91 8,202,003.75 10,023,291.66 1.26% 44914KAE8 0000000000 HYPERION TELECOMMUNICATIO 15,100.00 110,800.00 125,900.00 0.02% 44914KAH1 0000000000 HYPERION TELECOMMUNICATIO 0.00 120,000.00 120,000.00 0.02% 450295AC4 0000000000 ISP CHEMCO INC / ISP CHEM 444,125.00 2,022,075.00 2,466,200.00 0.31% 45337VAC4 0000000000 INDAH KIAT FIN MAURITIUS 446,500.00 2,042,500.00 2,489,000.00 0.31% 458801404 0000000000 INTERMEDIA COMMUNICATIONS 683,187.50 3,518,760.00 4,201,947.50 0.53% 458801AL1 0000000000 INTERMEDIA COMMUNICATIONS 1,592,718.75 255,937.50 1,848,656.25 0.23% 459902AJ1 0000000000 INTERNATIONAL GAME TECHNO 1,247,212.50 6,341,312.50 7,588,525.00 0.96% 46034HAA3 0000000000 INTERNATIONAL SPECIALT 665,000.00 3,508,391.80 4,173,391.80 0.53% 46521PAA5 0000000000 ISTAR FINL INC SR NT 630,438.48 2,977,812.76 3,608,251.24 0.45% 477122AD7 0000000000 JET EQUIP TR SER 1994-A C 682,500.00 1,837,869.00 2,520,369.00 0.32% 477122AT2 0000000000 JET EQUIP TR CTF 1995-A C 0.00 1,210,217.50 1,210,217.50 0.15% 48258WAF4 0000000000 K MART FDG CORP SECD LEAS 0.00 2,610,885.36 2,610,885.36 0.33% 546347AB1 0000000000 LOUISIANA PACIFIC RES 256,891.80 1,606,843.22 1,863,735.02 0.23% 546347AC9 0000000000 LOUISIANA-PAC CORP SR 777,600.00 4,178,450.00 4,956,050.00 0.62% 5
49787th Page of 98TOC1stPreviousNextBottomJust 87th
[Enlarge/Download Table] =================================================================================================================================== MSIF High Yield II MSIFT High Yield Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description(f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ ----------------------- ------------------ ---------------- ------------------ 5511682 0000000000 RSL COMMUNICATIONS 0.000 8,556,469.000 8,556,469.000 552078AL1 0000000000 LYONDELL CHEMICAL CO SR S 805,000.000 3,920,000.000 4,725,000.000 563571AA6 0000000000 MANITOWOC INC EURO SR S 455,000.000 0.000 455,000.000 5735998 0000000000 DOLPHIN TELECOM 0.000 11,260,000.000 11,260,000.000 57773A110 0000000000 WT MAXCOM TELECOMUNICACIO 925.000 77,250.000 78,175.000 57773AAC6 0000000000 MAXCOM TELECOMUNICACIONES 925,000.000 7,655,000.000 8,580,000.000 582268AAA 0000000000 MCLEODUSA INC SR NT 2,200,000.000 15,075,000.000 17,275,000.000 5843396 0000000000 TELE1 EUROPE 0.000 5,705,000.000 5,705,000.000 591689AE4 0000000000 METROMEDIA FIBER NETWORK 2,075,000.000 12,410,000.000 14,485,000.000 5921991 0000000000 NETIA HLDGS 0.000 3,910,000.000 3,910,000.000 5923674 0000000000 HUNTSMAN ICI CHEMI 0.000 4,285,000.000 4,285,000.000 594079AA3 0000000000 MICHAEL FOODS INC NEW 750,000.000 4,120,000.000 4,870,000.000 5960671 0000000000 PTC INTL FIN II 0.000 7,330,000.000 7,330,000.000 5998995 0000000000 TELEWEST COMMS 9.875% BDS 0.000 13,730,000.000 13,730,000.000 60036NAD3 0000000000 MILLENNIUM AMER INC SR NT 250,000.000 1,600,000.000 1,850,000.000 60467PAH7 0000000000 MIRANT AMERICAS GENERATIO 740,000.000 3,635,000.000 4,375,000.000 617440201 0000000000 MORGAN STANLEY INSTITUTIO 0.000 525.043 525.043 617440300 0000000000 MORGAN STANLEY INSTITUTIO 0.000 143.331 143.331 617440508 0000000000 MORGAN STANLEY INSTITUTIO 0.000 660.745 660.745 617440755 0000000000 MORGAN STANLEY INSTITUTIO 0.000 71.173 71.173 617440771 0000000000 MORGAN STANLEY INSTITUTIO 0.000 716.981 716.981 617440813 0000000000 MORGAN STANLEY INSTITUTIO 0.000 627.605 627.605 617440862 0000000000 MORGAN STANLEY INSTITUTIO 0.000 626.820 626.820 617440888 0000000000 MORGAN STANLEY INSTITUTIO 0.000 1,038.430 1,038.430 619908114 0000000000 WTS MOTIENT CORP 144A 18,450.000 79,050.000 97,500.000 62719NAE1 0000000000 MURRIN MURRIN HLDGS PTY L 1,900,000.000 9,500,000.000 11,400,000.000 62844KAC9 0000000000 MUZAK LLC / MUZAK FIN COR 445,000.000 2,195,000.000 2,640,000.000 =================================================================================================================================== MSIF High Yield II MSIFT High Yield Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description(f) Market Value Market Value Market Value % of Net Assets ------------ ----------------------- ------------------ ---------------- ------------------ --------------- 5511682 0000000000 RSL COMMUNICATIONS 0.00 171,189.33 171,189.33 0.02% 552078AL1 0000000000 LYONDELL CHEMICAL CO SR S 813,050.00 3,959,200.00 4,772,250.00 0.60% 563571AA6 0000000000 MANITOWOC INC EURO SR S 426,009.83 0.00 426,009.83 0.05% 5735998 0000000000 DOLPHIN TELECOM 0.00 1,001.24 1,001.24 0.00% 57773A110 0000000000 WT MAXCOM TELECOMUNICACIO 9.25 772.50 781.75 0.00% 57773AAC6 0000000000 MAXCOM TELECOMUNICACIONES 185,000.00 1,531,000.00 1,716,000.00 0.22% 582268AAA 0000000000 MCLEODUSA INC SR NT 495,000.00 3,391,875.00 3,886,875.00 0.49% 5843396 0000000000 TELE1 EUROPE 0.00 1,775,510.71 1,775,510.71 0.22% 591689AE4 0000000000 METROMEDIA FIBER NETWORK 601,750.00 3,660,950.00 4,262,700.00 0.54% 5921991 0000000000 NETIA HLDGS 0.00 608,435.31 608,435.31 0.08% 5923674 0000000000 HUNTSMAN ICI CHEMI 0.00 3,429,200.98 3,429,200.98 0.43% 594079AA3 0000000000 MICHAEL FOODS INC NEW 810,000.00 4,449,600.00 5,259,600.00 0.66% 5960671 0000000000 PTC INTL FIN II 0.00 6,664,489.61 6,664,489.61 0.84% 5998995 0000000000 TELEWEST COMMS 9.875% BDS 0.00 8,773,035.54 8,773,035.54 1.11% 60036NAD3 0000000000 MILLENNIUM AMER INC SR NT 255,000.00 1,632,000.00 1,887,000.00 0.24% 60467PAH7 0000000000 MIRANT AMERICAS GENERATIO 684,436.36 3,345,872.10 4,030,308.46 0.51% 617440201 0000000000 MORGAN STANLEY INSTITUTIO 0.00 8,106.66 8,106.66 0.00% 617440300 0000000000 MORGAN STANLEY INSTITUTIO 0.00 1,656.91 1,656.91 0.00% 617440508 0000000000 MORGAN STANLEY INSTITUTIO 0.00 16,763.10 16,763.10 0.00% 617440755 0000000000 MORGAN STANLEY INSTITUTIO 0.00 2,807.06 2,807.06 0.00% 617440771 0000000000 MORGAN STANLEY INSTITUTIO 0.00 15,228.68 15,228.68 0.00% 617440813 0000000000 MORGAN STANLEY INSTITUTIO 0.00 6,282.33 6,282.33 0.00% 617440862 0000000000 MORGAN STANLEY INSTITUTIO 0.00 6,493.86 6,493.86 0.00% 617440888 0000000000 MORGAN STANLEY INSTITUTIO 0.00 7,642.84 7,642.84 0.00% 619908114 0000000000 WTS MOTIENT CORP 144A 369.00 1,581.00 1,950.00 0.00% 62719NAE1 0000000000 MURRIN MURRIN HLDGS PTY L 1,387,000.00 6,935,000.00 8,322,000.00 1.05% 62844KAC9 0000000000 MUZAK LLC / MUZAK FIN COR 391,600.00 1,931,600.00 2,323,200.00 0.29% 6
49788th Page of 98TOC1stPreviousNextBottomJust 88th
[Enlarge/Download Table] =================================================================================================================================== MSIF High Yield II MSIFT High Yield Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description(f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ ----------------------- ------------------ ---------------- ------------------ 629407AF4 0000000000 NTL INC SR DEFERRED CPN 2,875,000.000 0.000 2,875,000.000 62940NAM4 0000000000 NTL COMMUNICATIONS CORP U 1,020,000.000 3,980,000.000 5,000,000.000 637844AM3 0000000000 NATIONAL STL CORP 1,300,000.000 11,450,000.000 12,750,000.000 64114DADA 0000000000 NETIA HLDGS II B V GTD SR 1,375,000.000 1,225,000.000 2,600,000.000 64114MADA 0000000000 NETIA HLDGS B V GTD SR NT 0.000 2,740,000.000 2,740,000.000 65332V400 0000000000 NEXTEL COMMUNICATIONS INC 1,209.991 5,953.000 7,162.991 65332VAJ2 0000000000 NEXTEL COMMUNICATIONS 2,425,000.000 10,155,000.000 12,580,000.000 65332VAV5 0000000000 NEXTEL COMMUNICATIONS INC 1,425,000.000 3,520,000.000 4,945,000.000 65333HAG8 0000000000 NEXTLINK COMMUNICATIONS 2,575,000.000 6,615,000.000 9,190,000.000 65333HAJ2 0000000000 NEXTLINK COMMUNICATIONS 325,000.000 4,785,000.000 5,110,000.000 65333HAKA 0000000000 NEXTLINK COMMUNICATIONS 500,000.000 2,000,000.000 2,500,000.000 65333HAL7 0000000000 NEXTLINK COMMUNICATIONS 0.000 2,565,000.000 2,565,000.000 65333HAQ6 0000000000 NEXTLINK COMMUNICATIONS I 450,000.000 4,315,000.000 4,765,000.000 65335HAA9 0000000000 NEXTMEDIA OPER INC SR SUB 750,000.000 4,035,000.000 4,785,000.000 65542NAC1 0000000000 NORAMPAC INC SR NT 1,450,000.000 7,355,000.000 8,805,000.000 65653RAA1 0000000000 NORSKE SKOG CDA LTD SR 0.000 1,075,000.000 1,075,000.000 67083VAC4 0000000000 OHA AUTO GRANTOR TR 1997 0.000 2,576,087.730 2,576,087.730 670872AA8 0000000000 OM GROUP INC SR SUB NT 290,000.000 1,550,000.000 1,840,000.000 674608112 0000000000 WTS OCCIDENTE Y CARIBE 95,000.000 69,370.000 164,370.000 681904AF5 0000000000 OMNICARE INC SR SUB NT 740,000.000 4,155,000.000 4,895,000.000 682735170 0000000000 ONO FIN PLC EQUITY VAL 850.000 5,450.000 6,300.000 682735AS4 0000000000 ONO FIN PLC US$ NT DTD 850,000.000 5,450,000.000 6,300,000.000 690768BC9 0000000000 OWENS ILL INC SR NT 575,000.000 1,020,000.000 1,595,000.000 690768BD7 0000000000 OWENS ILL INC SR DEB 1,020,000.000 5,635,000.000 6,655,000.000 690768BF2 0000000000 OWENS ILL INC SR DEB 755,000.000 3,845,000.000 4,600,000.000 =================================================================================================================================== MSIF High Yield II MSIFT High Yield Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description(f) Market Value Market Value Market Value % of Net Assets ------------ ----------------------- ------------------ ---------------- ------------------ --------------- 629407AF4 0000000000 NTL INC SR DEFERRED CPN 805,000.00 0.00 805,000.00 0.10% 62940NAM4 0000000000 NTL COMMUNICATIONS CORP U 357,000.00 1,393,000.00 1,750,000.00 0.22% 637844AM3 0000000000 NATIONAL STL CORP 455,000.00 3,893,000.00 4,348,000.00 0.55% 64114DADA 0000000000 NETIA HLDGS II B V GTD SR 220,000.00 202,125.00 422,125.00 0.05% 64114MADA 0000000000 NETIA HLDGS B V GTD SR NT 0.00 452,100.00 452,100.00 0.06% 65332V400 0000000000 NEXTEL COMMUNICATIONS INC 683,644.86 3,393,210.00 4,076,854.86 0.51% 65332VAJ2 0000000000 NEXTEL COMMUNICATIONS 1,855,125.00 7,717,800.00 9,572,925.00 1.21% 65332VAV5 0000000000 NEXTEL COMMUNICATIONS INC 1,125,750.00 2,754,400.00 3,880,150.00 0.49% 65333HAG8 0000000000 NEXTLINK COMMUNICATIONS 270,375.00 694,575.00 964,950.00 0.12% 65333HAJ2 0000000000 NEXTLINK COMMUNICATIONS 39,000.00 574,200.00 613,200.00 0.08% 65333HAKA 0000000000 NEXTLINK COMMUNICATIONS 62,500.00 250,000.00 312,500.00 0.04% 65333HAL7 0000000000 NEXTLINK COMMUNICATIONS 0.00 205,200.00 205,200.00 0.03% 65333HAQ6 0000000000 NEXTLINK COMMUNICATIONS I 33,750.00 323,625.00 357,375.00 0.05% 65335HAA9 0000000000 NEXTMEDIA OPER INC SR SUB 774,375.00 4,166,137.50 4,940,512.50 0.62% 65542NAC1 0000000000 NORAMPAC INC SR NT 1,515,250.00 7,685,975.00 9,201,225.00 1.16% 65653RAA1 0000000000 NORSKE SKOG CDA LTD SR 0.00 1,115,312.50 1,115,312.50 0.14% 67083VAC4 0000000000 OHA AUTO GRANTOR TR 1997 0.00 1,468,370.01 1,468,370.01 0.19% 670872AA8 0000000000 OM GROUP INC SR SUB NT 290,000.00 1,569,850.00 1,859,850.00 0.23% 674608112 0000000000 WTS OCCIDENTE Y CARIBE 95,000.00 693,700.00 788,700.00 0.10% 681904AF5 0000000000 OMNICARE INC SR SUB NT 765,900.00 4,300,425.00 5,066,325.00 0.64% 682735170 0000000000 ONO FIN PLC EQUITY VAL 4,250.00 21,800.00 26,050.00 0.00% 682735AS4 0000000000 ONO FIN PLC US$ NT DTD 670,437.50 4,298,687.50 4,969,125.00 0.63% 690768BC9 0000000000 OWENS ILL INC SR NT 520,375.00 912,900.00 1,433,275.00 0.18% 690768BD7 0000000000 OWENS ILL INC SR DEB 912,900.00 4,991,175.00 5,904,075.00 0.74% 690768BF2 0000000000 OWENS ILL INC SR DEB 653,075.00 3,302,925.00 3,956,000.00 0.50% 7
49789th Page of 98TOC1stPreviousNextBottomJust 89th
[Enlarge/Download Table] =================================================================================================================================== MSIF High Yield II MSIFT High Yield Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description(f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ ----------------------- ------------------ ---------------- ------------------ 69334TAC2 0000000000 PG&E NATL ENERGY GROUP 570,000.000 3,465,000.000 4,035,000.000 69363VAB3 0000000000 PSI NET INC US$ SR NT 500,000.000 5,100,000.000 5,600,000.000 69365XAB7 0000000000 PTC INTL FINANCE BV 1,690,000.000 1,550,000.000 3,240,000.000 694940AC1 0000000000 PACIFICA PAPERS INC SR NT 1,240,000.000 5,085,000.000 6,325,000.000 700690AE0 0000000000 PARK PLACE ENTERTAINMENT 600,000.000 3,445,000.000 4,045,000.000 704231117 0000000000 WTS PAXSON COMMUNICATIONS 1,024.000 34,060.000 35,084.000 704231505 0000000000 PAXSON COMMUNICATIONS COR 76.040 614.949 690.989 704231604 0000000000 PAXSON JR CRT PIK PFD 41.700 148.310 190.010 705904AD2 0000000000 PEGASUS COMMUNICATIONS CO 170,000.000 865,000.000 1,035,000.000 705904AJ9 0000000000 PEGASUS COMMUNICATIONS CO 75,000.000 395,000.000 470,000.000 706451AB7 0000000000 PEMEX PROJ FDG MASTER TR 725,000.000 4,285,000.000 5,010,000.000 7117721 0000000000 MANITOWOC CO INC 120,000.000 2,575,000.000 2,695,000.000 7126017 0000000000 MESSER GRIESHAM HL 780,000.000 4,340,000.000 5,120,000.000 7138335 0000000000 TELE1 EUROPE B V 500,000.000 3,000,000.000 3,500,000.000 717265AK8 0000000000 PHELPS DODGE CORP NT 755,000.000 4,750,000.000 5,505,000.000 718286AP2 0000000000 PHILIPPINES REP GLOBAL BD 305,000.000 1,680,000.000 1,985,000.000 722299AF1 0000000000 PINDO DELI FIN MAURITIUS 900,000.000 13,065,000.000 13,965,000.000 74157K606 0000000000 PRIMEDIA INC PFD EXCHANGE 1,480.000 10,680.000 12,160.000 74157K887 0000000000 PRIMEDIA INC PFD EXCHANGE 2,020.000 12,390.000 14,410.000 74157KAF8 0000000000 PRIMEDIA INC SR NT 1,235,000.000 7,695,000.000 8,930,000.000 741929AD5 0000000000 PRIMUS TELECOMMUNICATIONS 690,000.000 1,480,000.000 2,170,000.000 741929AF0 0000000000 PRIMUS TELECOMMUNICATIONS 365,000.000 6,305,000.000 6,670,000.000 741929AJ2 0000000000 PRIMUS TELECOMMUNICATIONS 415,000.000 2,780,000.000 3,195,000.000 74437CAB7 0000000000 PSINET INC SR NT 2,500,000.000 14,205,000.000 16,705,000.000 74819RAB2 0000000000 QUEBECOR MEDIA INC SR 1,095,000.000 6,025,000.000 7,120,000.000 74819RADA 0000000000 QUEBECOR MEDIA INC SR 400,000.000 1,275,000.000 1,675,000.000 =================================================================================================================================== MSIF High Yield II MSIFT High Yield Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description(f) Market Value Market Value Market Value % of Net Assets ------------ ----------------------- ------------------ ---------------- ------------------ --------------- 69334TAC2 0000000000 PG&E NATL ENERGY GROUP 601,007.43 3,635,353.26 4,236,360.69 0.53% 69363VAB3 0000000000 PSI NET INC US$ SR NT 37,500.00 382,500.00 420,000.00 0.05% 69365XAB7 0000000000 PTC INTL FINANCE BV 1,512,550.00 1,387,250.00 2,899,800.00 0.37% 694940AC1 0000000000 PACIFICA PAPERS INC SR NT 1,333,000.00 5,466,375.00 6,799,375.00 0.86% 700690AE0 0000000000 PARK PLACE ENTERTAINMENT 623,522.40 3,565,588.78 4,189,111.18 0.53% 704231117 0000000000 WTS PAXSON COMMUNICATIONS 256.00 8,515.00 8,771.00 0.00% 704231505 0000000000 PAXSON COMMUNICATIONS COR 646,340.00 5,165,571.60 5,811,911.60 0.73% 704231604 0000000000 PAXSON JR CRT PIK PFD 354,450.00 1,275,466.00 1,629,916.00 0.21% 705904AD2 0000000000 PEGASUS COMMUNICATIONS CO 153,000.00 778,500.00 931,500.00 0.12% 705904AJ9 0000000000 PEGASUS COMMUNICATIONS CO 75,750.00 398,950.00 474,700.00 0.06% 706451AB7 0000000000 PEMEX PROJ FDG MASTER TR 768,500.00 4,542,100.00 5,310,600.00 0.67% 7117721 0000000000 MANITOWOC CO INC 108,074.08 2,312,587.70 2,420,661.78 0.31% 7126017 0000000000 MESSER GRIESHAM HL 733,780.19 4,090,677.09 4,824,457.28 0.61% 7138335 0000000000 TELE1 EUROPE B V 156,047.56 960,336.33 1,116,383.89 0.14% 717265AK8 0000000000 PHELPS DODGE CORP NT 739,550.44 4,630,708.50 5,370,258.94 0.68% 718286AP2 0000000000 PHILIPPINES REP GLOBAL BD 298,900.00 1,642,200.00 1,941,100.00 0.24% 722299AF1 0000000000 PINDO DELI FIN MAURITIUS 135,000.00 1,959,750.00 2,094,750.00 0.26% 74157K606 0000000000 PRIMEDIA INC PFD EXCHANGE 71,780.00 469,920.00 541,700.00 0.07% 74157K887 0000000000 PRIMEDIA INC PFD EXCHANGE 97,970.00 545,160.00 643,130.00 0.08% 74157KAF8 0000000000 PRIMEDIA INC SR NT 1,111,500.00 6,925,500.00 8,037,000.00 1.01% 741929AD5 0000000000 PRIMUS TELECOMMUNICATIONS 117,300.00 251,600.00 368,900.00 0.05% 741929AF0 0000000000 PRIMUS TELECOMMUNICATIONS 62,050.00 1,071,850.00 1,133,900.00 0.14% 741929AJ2 0000000000 PRIMUS TELECOMMUNICATIONS 70,550.00 472,600.00 543,150.00 0.07% 74437CAB7 0000000000 PSINET INC SR NT 187,500.00 1,065,375.00 1,252,875.00 0.16% 74819RAB2 0000000000 QUEBECOR MEDIA INC SR 1,168,912.50 6,431,687.50 7,600,600.00 0.96% 74819RADA 0000000000 QUEBECOR MEDIA INC SR 242,500.00 772,968.75 1,015,468.75 0.13% 8
49790th Page of 98TOC1stPreviousNextBottomJust 90th
[Enlarge/Download Table] =================================================================================================================================== MSIF High Yield II MSIFT High Yield Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description(f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ ----------------------- ------------------ ---------------- ------------------ 749361AD3 0000000000 RCN CORP 750,000.000 14,425,000.000 15,175,000.000 749361AG6 0000000000 RCN CORP SR DISC NT SER 2,265,000.000 5,325,000.000 7,590,000.000 74972EAC2 0000000000 RSL COMMUNICATIONS PLC SR 2,000,000.000 8,495,000.000 10,495,000.000 74972EAD0 0000000000 RSL COMMUNICATIONS PLC SR 1,440,000.000 9,280,000.000 10,720,000.000 74972EAH1 0000000000 RSL COMMUNICATIONS PLC SR 200,000.000 3,945,000.000 4,145,000.000 74972EAK4 0000000000 RSL COMMUNICATIONS PLC 0.000 4,225,000.000 4,225,000.000 75040PAF5 0000000000 RADIO ONE INC SR SUB 485,000.000 2,700,000.000 3,185,000.000 760805119 0000000000 WTS REPUBLIC TECHNOLOGIES 1,010.000 51,700.000 52,710.000 760809AF0 0000000000 REPUBLIC TECHNOLOGIES INT 1,010,000.000 5,170,000.000 6,180,000.000 762430AC0 0000000000 RHYTHMS NETCONNECTIONS IN 3,610,000.000 10,720,000.000 14,330,000.000 762430AE6 0000000000 RHYTHMS NETCONNECTIONS IN 0.000 500,000.000 500,000.000 762430AG1 0000000000 RHYTHMS NETCONNECTIONS IN 415,000.000 12,115,000.000 12,530,000.000 769507AJ3 0000000000 RIVERWOOD INTL CORP SR SU 360,000.000 1,775,000.000 2,135,000.000 781076AC8 0000000000 RSL COMMUNICATIONS LTD / 241,000.000 970,000.000 1,211,000.000 79409PAA3 0000000000 SALEM COMMUNICATIONS HLDG 925,000.000 5,445,000.000 6,370,000.000 803895AB7 0000000000 SATELITES MEXICANOS S A D 1,440,000.000 7,970,000.000 9,410,000.000 808188AE6 0000000000 SCHULER HOMES INC SR NT 945,000.000 6,000,000.000 6,945,000.000 808188AG1 0000000000 SCHULER HOMES INC SR SUB 65,000.000 355,000.000 420,000.000 832248AC2 0000000000 SMITHFIELD FOODS INC SR S 1,580,000.000 7,100,000.000 8,680,000.000 83544Q101 0000000000 SONG NETWORKS HLDG AKTIEB 18,052.000 107,400.000 125,452.000 857689AF0 0000000000 STATION CASINOS INC SR SU 947,625.000 500,000.000 1,447,625.000 857689AH6 0000000000 STATION CASINOS INC SR SU 0.000 3,055,000.000 3,055,000.000 857689AK9 0000000000 STATION CASINOS INC SR SU 525,000.000 3,750,000.000 4,275,000.000 =================================================================================================================================== MSIF High Yield II MSIFT High Yield Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description(f) Market Value Market Value Market Value % of Net Assets ------------ ----------------------- ------------------ ---------------- ------------------ --------------- 749361AD3 0000000000 RCN CORP 221,250.00 4,255,375.00 4,476,625.00 0.56% 749361AG6 0000000000 RCN CORP SR DISC NT SER 611,550.00 1,437,750.00 2,049,300.00 0.26% 74972EAC2 0000000000 RSL COMMUNICATIONS PLC SR 80,000.00 339,800.00 419,800.00 0.05% 74972EAD0 0000000000 RSL COMMUNICATIONS PLC SR 50,400.00 324,800.00 375,200.00 0.05% 74972EAH1 0000000000 RSL COMMUNICATIONS PLC SR 8,000.00 157,800.00 165,800.00 0.02% 74972EAK4 0000000000 RSL COMMUNICATIONS PLC 0.00 169,000.00 169,000.00 0.02% 75040PAF5 0000000000 RADIO ONE INC SR SUB 500,762.50 2,787,750.00 3,288,512.50 0.41% 760805119 0000000000 WTS REPUBLIC TECHNOLOGIES 10.10 517.00 527.10 0.00% 760809AF0 0000000000 REPUBLIC TECHNOLOGIES INT 65,650.00 336,050.00 401,700.00 0.05% 762430AC0 0000000000 RHYTHMS NETCONNECTIONS IN 433,200.00 1,179,200.00 1,612,400.00 0.20% 762430AE6 0000000000 RHYTHMS NETCONNECTIONS IN 0.00 75,000.00 75,000.00 0.01% 762430AG1 0000000000 RHYTHMS NETCONNECTIONS IN 33,200.00 787,475.00 820,675.00 0.10% 769507AJ3 0000000000 RIVERWOOD INTL CORP SR SU 365,400.00 1,801,625.00 2,167,025.00 0.27% 781076AC8 0000000000 RSL COMMUNICATIONS LTD / 9,640.00 38,800.00 48,440.00 0.01% 79409PAA3 0000000000 SALEM COMMUNICATIONS HLDG 956,218.75 5,628,768.75 6,584,987.50 0.83% 803895AB7 0000000000 SATELITES MEXICANOS S A D 817,200.00 4,522,975.00 5,340,175.00 0.67% 808188AE6 0000000000 SCHULER HOMES INC SR NT 978,075.00 6,210,000.00 7,188,075.00 0.91% 808188AG1 0000000000 SCHULER HOMES INC SR SUB 67,762.50 370,087.50 437,850.00 0.06% 832248AC2 0000000000 SMITHFIELD FOODS INC SR S 1,548,400.00 6,958,000.00 8,506,400.00 1.07% 83544Q101 0000000000 SONG NETWORKS HLDG AKTIEB 14,802.64 82,698.00 97,500.64 0.01% 857689AF0 0000000000 STATION CASINOS INC SR SU 964,208.44 490,000.00 1,454,208.44 0.18% 857689AH6 0000000000 STATION CASINOS INC SR SU 490,000.00 2,503,900.00 2,993,900.00 0.38% 857689AK9 0000000000 STATION CASINOS INC SR SU 533,531.25 3,810,937.50 4,344,468.75 0.55% 9
49791st Page of 98TOC1stPreviousNextBottomJust 91st
[Enlarge/Download Table] =================================================================================================================================== MSIF High Yield II MSIFT High Yield Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description(f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ ----------------------- ------------------ ---------------- ------------------ 861642AD8 0000000000 STONE ENERGY CORP SR S 455,000.000 2,250,000.000 2,705,000.000 863572HU0 0000000000 STRUCTURED ASSET SECS 0.000 6,200,207.370 6,200,207.370 863572HV8 0000000000 STRUCTURED ASSET SECS 0.000 610,459.130 610,459.130 863572HW6 0000000000 STRUCTURED ASSET SECS 0.000 1,168,825.560 1,168,825.560 872594114 0000000000 WTS TNP ENTERPRISES INC 1,075.000 6,945.000 8,020.000 872594403 0000000000 TNP ENTERPRISES INC PFD R 1,211.560 7,791.000 9,002.560 872649BL1 0000000000 TRW INC NT 320,000.000 1,975,000.000 2,295,000.000 87944KAC5 0000000000 TELE1 EUROPE B V US 1,325,000.000 2,105,000.000 3,430,000.000 87944KAJ0 0000000000 TELE1 EUROPE B V EURO SR 0.000 1,390,000.000 1,390,000.000 87956PAL9 0000000000 TELEWEST COMMUNICATIONS 3,100,000.000 3,170,000.000 6,270,000.000 87971KAC1 0000000000 TEMBEC INDS INC GTD SR 1,460,000.000 7,210,000.000 8,670,000.000 889478AC7 0000000000 TOLL BROS INC SR SUB N 1,475,000.000 7,110,000.000 8,585,000.000 901145AF9 0000000000 TV AZTECA S A DE C V GTD 1,125,000.000 5,290,000.000 6,415,000.000 902917AD5 0000000000 USA WASTE SVCS INC SR NT 0.000 2,385,000.000 2,385,000.000 902917AF0 0000000000 USA WASTE SVCS INC 400,000.000 1,545,000.000 1,945,000.000 91086QAF5 0000000000 UNITED MEXICAN STS MED 475,000.000 2,870,000.000 3,345,000.000 911300AC5 0000000000 UNITED PAN EUROPE CUMMUNI 1,720,000.000 7,935,000.000 9,655,000.000 912795JC6 0000000000 UNITED STATES TREASURY BI 200,000.000 1,000,000.000 1,200,000.000 925529AW9 0000000000 VIATEL INC SR STEP CPN BD 1,930,000.000 13,095,000.000 15,025,000.000 927460AB1 0000000000 VINTAGE PETE INC SR SUB N 425,000.000 5,355,000.000 5,780,000.000 927460AD7 0000000000 VINTAGE PETE INC SR SUB 380,000.000 820,000.000 1,200,000.000 927460AF2 0000000000 VINTAGE PETE INC SR SUB 700,000.000 0.000 700,000.000 =================================================================================================================================== MSIF High Yield II MSIFT High Yield Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description(f) Market Value Market Value Market Value % of Net Assets ------------ ----------------------- ------------------ ---------------- ------------------ --------------- 861642AD8 0000000000 STONE ENERGY CORP SR S 461,825.00 2,283,750.00 2,745,575.00 0.35% 863572HU0 0000000000 STRUCTURED ASSET SECS 0.00 366,680.26 366,680.26 0.05% 863572HV8 0000000000 STRUCTURED ASSET SECS 0.00 360.17 360.17 0.00% 863572HW6 0000000000 STRUCTURED ASSET SECS 0.00 12,296.04 12,296.04 0.00% 872594114 0000000000 WTS TNP ENTERPRISES INC 32,250.00 208,350.00 240,600.00 0.03% 872594403 0000000000 TNP ENTERPRISES INC PFD R 1,326,658.20 8,336,370.00 9,663,028.20 1.22% 872649BL1 0000000000 TRW INC NT 329,567.68 2,026,624.53 2,356,192.21 0.30% 87944KAC5 0000000000 TELE1 EUROPE B V US 477,000.00 757,800.00 1,234,800.00 0.16% 87944KAJ0 0000000000 TELE1 EUROPE B V EURO SR 0.00 420,236.06 420,236.06 0.05% 87956PAL9 0000000000 TELEWEST COMMUNICATIONS 1,367,875.00 1,394,800.00 2,762,675.00 0.35% 87971KAC1 0000000000 TEMBEC INDS INC GTD SR 1,511,100.00 7,426,300.00 8,937,400.00 1.13% 889478AC7 0000000000 TOLL BROS INC SR SUB N 1,460,250.00 7,038,900.00 8,499,150.00 1.07% 901145AF9 0000000000 TV AZTECA S A DE C V GTD 1,094,062.50 5,144,525.00 6,238,587.50 0.79% 902917AD5 0000000000 USA WASTE SVCS INC SR NT 0.00 2,424,464.60 2,424,464.60 0.31% 902917AF0 0000000000 USA WASTE SVCS INC 379,284.80 1,454,872.43 1,834,157.23 0.23% 91086QAF5 0000000000 UNITED MEXICAN STS MED 492,812.50 2,976,190.00 3,469,002.50 0.44% 911300AC5 0000000000 UNITED PAN EUROPE CUMMUNI 223,600.00 1,031,550.00 1,255,150.00 0.16% 912795JC6 0000000000 UNITED STATES TREASURY BI 198,988.00 999,031.11 1,198,019.11 0.15% 925529AW9 0000000000 VIATEL INC SR STEP CPN BD 2,412.50 16,368.75 18,781.25 0.00% 927460AB1 0000000000 VINTAGE PETE INC SR SUB N 431,375.00 5,435,325.00 5,866,700.00 0.74% 927460AD7 0000000000 VINTAGE PETE INC SR SUB 400,900.00 865,100.00 1,266,000.00 0.16% 927460AF2 0000000000 VINTAGE PETE INC SR SUB 686,000.00 0.00 686,000.00 0.09% 10
49792nd Page of 98TOC1stPreviousNextBottomJust 92nd
[Enlarge/Download Table] =================================================================================================================================== MSIF High Yield II MSIFT High Yield Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description(f) Shares/Par Value Shares/Par Value Shares/Par Value ------------ ----------------------- ------------------ ---------------- ------------------ 92929QAR8 0000000000 WMX TECHNOLOGIES INC 800,000.000 0.000 800,000.000 94106LAE9 0000000000 WASTE MANAGEMENT INC 1,100,000.000 1,200,000.000 2,300,000.000 94106LAK5 0000000000 WASTE MGMT INC DEL SR NT 1,200,000.000 3,640,000.000 4,840,000.000 975515AX5 0000000000 WINSTAR COMMUNICATIONS IN 500,000.000 2,000,000.000 2,500,000.000 975515AZ0 0000000000 WINSTAR COMMUNICATIONS IN 9,510,000.000 58,455,000.000 67,965,000.000 98375Y114 0000000000 WTS XM SATELLITE RADIO 8,200.000 4,965.000 13,165.000 98375YAC0 0000000000 XM SATELLITE RADIO INC SR 415,000.000 2,695,000.000 3,110,000.000 983764408 0000000000 XO COMMUNICATIONS INC SR 10,967.005 74,943.245 85,910.250 983764705 0000000000 XO COMMUNICATIONS INC SR 1,580.604 8,878.540 10,459.144 987434AM9 0000000000 YOUNG BROADCASTING INC 850,000.000 4,650,000.000 5,500,000.000 9900032BE 0000000000 MAR 02 5 YEAR T NOTES-CBT* 20.000 (240.000) (220.000) 9900032BF 0000000000 MAR 02 10 YEAR T NOTES-CB* (107.000) (313.000) (420.000) 9900091CF 0000000000 SEP 01 10 YEAR T NOTES-CB* 0.000 105.000 105.000 B238110 0000000000 ESPRIT TELECOM GRP 0.000 3,265,000.000 3,265,000.000 B238581 0000000000 ESPRIT TELECOM GRP 0.000 2,607,587.700 2,607,587.700 B285068 0000000000 DANA CORP 450,000.000 1,125,000.000 1,575,000.000 BOS161ABL 0000000000 JPM CHASE POOLED REPO 2,591,000.000 0.000 2,591,000.000 BOS161ABQ 0000000000 JPMC POOLED REPO(MAS)1.65 0.000 5,366,000.000 5,366,000.000 --------------- ----------------- ----------------- Total Fund 196,905,655.198 1,085,683,057.974 1,282,588,713.172 =================================================================================================================================== MSIF High Yield II MSIFT High Yield Portfolio Portfolio Pro-Forma Combined Cusip Number Security Description(f) Market Value Market Value Market Value % of Net Assets ------------ ----------------------- ------------------ ---------------- ------------------ --------------- 92929QAR8 0000000000 WMX TECHNOLOGIES INC 822,232.80 0.00 822,232.80 0.10% 94106LAE9 0000000000 WASTE MANAGEMENT INC 1,108,137.80 1,202,412.00 2,310,549.80 0.29% 94106LAK5 0000000000 WASTE MGMT INC DEL SR NT 1,227,016.80 3,703,889.28 4,930,906.08 0.62% 975515AX5 0000000000 WINSTAR COMMUNICATIONS IN 625.00 2,500.00 3,125.00 0.00% 975515AZ0 0000000000 WINSTAR COMMUNICATIONS IN 11,887.50 73,068.75 84,956.25 0.01% 98375Y114 0000000000 WTS XM SATELLITE RADIO 24,600.00 9,930.00 34,530.00 0.00% 98375YAC0 0000000000 XM SATELLITE RADIO INC SR 328,368.75 2,132,418.75 2,460,787.50 0.31% 983764408 0000000000 XO COMMUNICATIONS INC SR 1,096.70 11,241.49 12,338.19 0.00% 983764705 0000000000 XO COMMUNICATIONS INC SR 1,580.60 13,317.81 14,898.41 0.00% 987434AM9 0000000000 YOUNG BROADCASTING INC 790,500.00 4,324,500.00 5,115,000.00 0.64% 9900032BE 0000000000 MAR 02 5 YEAR T NOTES-CBT* 2,116,562.50 (25,275,000.00) (23,158,437.50) -2.92% 9900032BF 0000000000 MAR 02 10 YEAR T NOTES-CB* 0.00 (43,968,328.13) (43,968,328.13) -5.54% 9900091CF 0000000000 SEP 01 10 YEAR T NOTES-CB* 0.00 11,156,250.00 11,156,250.00 1.41% B238110 0000000000 ESPRIT TELECOM GRP 0.00 14,844.03 14,844.03 0.00% B238581 0000000000 ESPRIT TELECOM GRP 0.00 23,186.68 23,186.68 0.00% B285068 0000000000 DANA CORP 367,157.61 920,322.32 1,287,479.93 0.16% BOS161ABL 0000000000 JPM CHASE POOLED REPO 2,591,000.00 0.00 2,591,000.00 0.33% BOS161ABQ 0000000000 JPMC POOLED REPO(MAS)1.65 0.00 5,366,000.00 5,366,000.00 0.68% -------------- -------------- ---------------- ------ Total Fund 132,695,681.52 578,317,130.42 711,012,811.976 89.64% ---------------- Total Net Assets 793,175,829.62 * Total Market Value denoted above is lower than the Statement of Assets and Liabilities due to the inclusion of derivative instruments (futures and swaps) held by MSIFT High Yield Portfolio and the High Yield II Portfolio. 11
49793rd Page of 98TOC1stPreviousNextBottomJust 93rd
Morgan Stanley Institutional Fund Trust Pro Forma Combined Statement of Assets & Liabilities December 31, 2001 (Unaudited) [Enlarge/Download Table] --------------------------------------------------------- MSIF MSIFT Pro Forma High Yield II High Yield Combined Portfolio Portfolio Adjustments Portfolio (000) (000) (000) (000) --------------------------------------------------------- Assets Investments, at Cost -- see accompanying Portfolio of Investments $185,356 $982,266 $0 $1,167,622 ========================================================= Investments, at Value 130,870 636,935 0 767,805 Cash 31 (226) 0 (195) Interest Receivable 3,657 19,583 0 23,240 Receivable for Investments Sold 0 2,911 0 2,911 Receivable for Portfolio Shares Sold (8) 1,001 0 993 Unrealized Appreciation on Forward Foreign Currency Contracts 7 279 286 Receivable Due from Investment Advisor 0 0 0 0 Prepaid Expenses 6 6 12 Other Assets 134 (18) 0 116 --------------------------------------------------------- Total Assets 134,697 660,471 0 795,168 Liabilities Payable for Investments Purchased 0 0 0 0 Payable for Futures Variation Margin 47 315 0 362 Payable for Portfolio Shares Redeemed 303 3 0 306 Payable for Merger Costs 0 0 55 (g) 55 Administrative Fees Payable 24 146 0 170 Blue Sky Fees Payable 0 2 0 2 Custodian Fees Payable 5 0 0 5 Directors Compensation Payable 17 61 0 78 Investment Advisory Fees Payable 123 778 0 901 Other Payables 1 48 0 49 Professional Fees Payable 23 2 0 25 Rule 12b-1 Fees Payable 7 21 0 28 Shareholder Servicing Fees Payable 0 6 0 6 Shareholder Reporting Expense Payable 19 (14) 0 5 --------------------------------------------------------- Total Liabilities 569 1,368 55 1,992 --------------------------------------------------------- Net Assets $134,128 $659,103 ($55) $793,176 ========================================================= Net Assets Consist Of: Paid-In Capital $205,080 $1,073,826 $0 $1,278,906 Undistributed Net Investment Gain/(Loss) (479) 555 (55) 21 Accumulated Net Realized Gain/(Loss) (16,083) (70,540) 0 (86,623) Unrealized Appreciation/(Depreciation) of Investments (54,390) (344,738) 0 (399,128) --------------------------------------------------------- Net Assets $134,128 $659,103 $0 $793,176 ========================================================= Net Asset Value Per Share -- Institutional Class Net Assets -- Institutional Class $120,127 $544,947 ($45) (g) $665,029 Shares Outstanding -- Institutional Class 16,601,877 96,791,538 4,734,889 (a) 118,128,304 --------------------------------------------------------- Net Asset Value Per Share -- Institutional Class $7.24 $5.63 0 $5.63 ========================================================= Net Asset Value Per Share -- Investment Class Net Assets -- Investment Class $0 $ 10,153 $ (1) (g) $ 10,152 Shares Outstanding -- Investment Class 0 1,800,758 0 1,800,758 Net Asset Value Per Share -- Investment Class --------------------------------------------------------- $0.00 $5.64 0 $5.64 Net Asset Value Per Share -- Adviser Class ========================================================= Net Assets -- Adviser Class $14,002 $104,002 (9) (g) $117,995 Shares Outstanding -- Adviser Class 1,949,223 18,538,414 546,686 (a) 21,034,323 --------------------------------------------------------- Net Asset Value Per Share -- Adviser Class $7.18 $5.61 $0 $5.61 ========================================================= See Notes to Pro Forma Combined Financial Statements
49794th Page of 98TOC1stPreviousNextBottomJust 94th
Morgan Stanley Institutional Fund Trust Pro Forma Combined Statement of Operations December 31, 2001 (Unaudited) [Enlarge/Download Table] ----------------------------------------------------- MSIF MSIFT Pro Forma High Yield II High Yield Combined Portfolio Portfolio Adjustments Portfolio (000) (000) (000) (000) ----------------------------------------------------- Investment Income Dividends $254 $1,905 $0 $2,159 Interest 15,972 102,085 0 118,057 ----------------------------------------------------- Total Investment Income 16,226 103,990 0 120,216 Expenses Investment Advisory Fees 552 3,943 (926) (b) 3,569 Less: Fees Waived 0 0 0 0 Shareholder Reporting Fees 68 34 (61) (e) 41 Administrative Fees 228 829 (423) (c) 634 Professional Fees 36 59 (31) (e) 64 Custodian Fees 20 0 (20) (e) 0 Directors' Fees and Expenses 4 14 (1) (e) 17 Rule 12b-1 Fees 48 155 92 (d) 295 Sharehlder Servicing Fees 0 15 0 15 Registration Fees 36 87 (18) (e) 105 Merger Costs 0 0 55 (g) 55 Other Expenses 10 22 (10) (e) 22 ----------------------------------------------------- Net Expenses 1,002 5,158 (1,343) 4,817 ----------------------------------------------------- Net Investment Income 15,224 98,832 1,343 115,399 Net Realized Gain/(Loss) on: Foreign Currency (6) (2,113) 0 (2,119) Futures (110) 1,287 0 1,177 Investments Sold (3,501) (27,246) 0 (30,747) ----------------------------------------------------- Change in Unrealized Appreciation/(Depreciation) on Foreign Currency and Investments (21,470) (128,834) 0 (150,304) ----------------------------------------------------- Net Realized Gain/(Loss) and Change in Unrealized Appreciation/(Depreciation) (24,977) (158,193) 0 (183,170) ----------------------------------------------------- Net Increase/(Decrease) in Net Assets Resulting from Operations ($9,753) ($59,361) $1,343 ($67,771) ===================================================== See Notes to Pro Forma Combined Financial Statements
49795th Page of 98TOC1stPreviousNextBottomJust 95th
Morgan Stanley Institutional Fund Trust Pro Forma Combined Notes to Financial Statements December 31, 2001 (Unaudited) Pro forma financial information is intended to provide shareholders of MSIF High Yield II Portfolio and MSIFT High Yield Portfolio with information about the impact of the proposed merger by indicating how the merger might have affected the information had the merger been consummated as of December 31, 2001. The pro forma combined statements of assets and liabilities and of operations as of December 31, 2001 have been prepared to reflect the merger of MSIF High Yield II Portfolio and MSIFT High Yield Portfolio after giving effect to pro forma adjustments described in the notes below. (a) Acquisition by MSIFT High Yield Portfolio of MSIF High Yield II Portfolio and issuance of MSIFT High Yield Portfolio shares in exchange for all of the outstanding shares of MSIF High Yield II Portfolio. (b) Investment Advisory fees were adjusted to reflect the application of the fee structure for MSIFT High Yield Portfolio (0.45% of average daily net assets). (c) Administration fees were adjusted to reflect the application of the fee structure for MSIFT High Yield Portfolio (0.08% of average daily net assets). (d) Rule 12b-1 fees were adjusted to reflect the application of the fee structure for MSIFT High Yield Portfolio (0.25% of Class B average daily net assets). (e) Certain pro forma basis expenses reflect actual expenses incurred by the individual Portfolios, adjusted to reflect estimated cost savings arising from the merger or, in some cases, additional costs. (f) No realignment of the portfolio is expected in connection with the merger. (g) Amount represents 1/3 of the total estimated costs expected to be incurred in connection with the merger.
49796th Page of 98TOC1stPreviousNextBottomJust 96th
PROXY CARD MORGAN STANLEY INSTITUTIONAL FUND, INC. FIXED INCOME III PORTFOLIO c/o MORGAN STANLEY INVESTMENT MANAGEMENT INC. 1221 AVENUE OF THE AMERICAS NEW YORK, NEW YORK 10020 THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS The undersigned hereby constitutes and appoints RONALD E. ROBISON, STEFANIE V. CHANG and MARY E. MULLIN, and each of them, as proxies for the undersigned, with full power of substitution and resubstitution, and hereby authorizes said proxies, and each of them, to represent and vote, as designated on the reverse side, all stock of the Fixed Income III Portfolio held of record by the undersigned on February 19, 2002 at the Special Meeting of Shareholders to be held on May 15, 2002, and at any adjournment thereof. The undersigned hereby revokes any and all proxies with respect to such stock heretofore given by the undersigned. The undersigned acknowledges receipt of the Proxy Statement and Prospectus dated March 25, 2002. (CONTINUED AND TO BE SIGNED AND DATED ON REVERSE SIDE.) SEE REVERSE SIDE [X] Please mark your votes as in this sample. 1. Approval of an Agreement and Plan of Reorganization pursuant to which substantially all of the assets of the Fixed Income III Portfolio will be combined with the assets of the Invesment Grade Fixed Income Portfolio of Morgan Stanley Institutional Fund Trust, in exchange for shares of the Investment Grade Fixed Income Portfolio. FOR AGAINST ABSTAIN [ ] [ ] [ ] THIS PROXY CARD WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED SHAREHOLDER, AND IN THE DISCRETION OF SUCH PROXIES, UPON ANY AND ALL OTHER BUSINESS AS MAY PROPERLY COME BEFORE THE MEETING OR ANY ADJOURNMENT THEREOF. IF NO DIRECTION IS MADE, THIS PROXY CARD WILL BE VOTED FOR APPROVAL OF THE AGREEMENT AND PLAN OF REORGANIZATION FOR THE PORTFOLIO AS SET FORTH ABOVE. PLEASE SIGN EXACTLY AS YOUR NAME APPEARS. WHEN SHARES ARE HELD BY JOINT TENANTS, EACH JOINT TENANT MUST SIGN. SIGNATURE(S): _______________________.. _____________________________________ DATE: _____________________________________________________________, 2002 When signing as attorney, executor, administrator, trustee, guardian or custodian, please sign full title as such. If a corporation, please sign full corporate name by authorized officer and indicate the signer's office. If a partnership, please sign in partnership name. PLEASE MARK, SIGN, DATE AND RETURN THIS PROXY CARD PROMPTLY USING THE ENCLOSED ENVELOPE. MARK HERE FOR ADDRESS CHANGE AND NOTE BELOW [ ]
49797th Page of 98TOC1stPreviousNextBottomJust 97th
PROXY CARD MORGAN STANLEY INSTITUTIONAL FUND, INC. HIGH YIELD II PORTFOLIO c/o MORGAN STANLEY INVESTMENT MANAGEMENT INC. 1221 AVENUE OF THE AMERICAS NEW YORK, NEW YORK 10020 THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS The undersigned hereby constitutes and appoints RONALD E. ROBISON, STEFANIE V. CHANG and MARY E. MULLIN, and each of them, as proxies for the undersigned, with full power of substitution and resubstitution, and hereby authorizes said proxies, and each of them, to represent and vote, as designated on the reverse side, all stock of the High Yield II Portfolio held of record by the undersigned on February 19, 2002 at the Special Meeting of Shareholders to be held on May 15, 2002, and at any adjournment thereof. The undersigned hereby revokes any and all proxies with respect to such stock heretofore given by the undersigned. The undersigned acknowledges receipt of the Proxy Statement and Prospectus dated March 25, 2002. (CONTINUED AND TO BE SIGNED AND DATED ON REVERSE SIDE.) SEE REVERSE SIDE [X] Please mark your votes as in this sample. 1. Approval of an Agreement and Plan of Reorganization pursuant to which substantially all of the assets of the High Yield II Portfolio will be combined with the assets of the High Yield Portfolio of Morgan Stanley Institutional Fund Trust, in exchange for shares of the High Yield Portfolio. FOR AGAINST ABSTAIN [ ] [ ] [ ] THIS PROXY CARD WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED SHAREHOLDER, AND IN THE DISCRETION OF SUCH PROXIES, UPON ANY AND ALL OTHER BUSINESS AS MAY PROPERLY COME BEFORE THE MEETING OR ANY ADJOURNMENT THEREOF. IF NO DIRECTION IS MADE, THIS PROXY CARD WILL BE VOTED FOR APPROVAL OF THE AGREEMENT AND PLAN OF REORGANIZATION FOR THE PORTFOLIO AS SET FORTH ABOVE. PLEASE SIGN EXACTLY AS YOUR NAME APPEARS. WHEN SHARES ARE HELD BY JOINT TENANTS, EACH JOINT TENANT MUST SIGN. SIGNATURE(S): _______________________.. _____________________________________ DATE: _____________________________________________________________, 2002 When signing as attorney, executor, administrator, trustee, guardian or custodian, please sign full title as such. If a corporation, please sign full corporate name by authorized officer and indicate the signer's office. If a partnership, please sign in partnership name. PLEASE MARK, SIGN, DATE AND RETURN THIS PROXY CARD PROMPTLY USING THE ENCLOSED ENVELOPE. MARK HERE FOR ADDRESS CHANGE AND NOTE BELOW [ ]
497Last Page of 98TOC1stPreviousNextBottomJust 98th
PROXY CARD MORGAN STANLEY INSTITUTIONAL FUND TRUST SPECIAL PURPOSE FIXED INCOME PORTFOLIO c/o MORGAN STANLEY INVESTMENTS LP 100 Front Street, Suite 1100, P.O. Box 868 West Conshohocken, PA 19428-0868 THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF TRUSTEES The undersigned hereby constitutes and appoints RONALD E. ROBISON, STEFANIE V. CHANG and MARY E. MULLIN, and each of them, as proxies for the undersigned, with full power of substitution and resubstitution, and hereby authorizes said proxies, and each of them, to represent and vote, as designated on the reverse side, all shares of beneficial interest of the Special Purpose Fixed Income Portfolio held of record by the undersigned on February 19, 2002 at the Special Meeting of Shareholders to be held on May 15, 2002, and at any adjournment thereof. The undersigned hereby revokes any and all proxies with respect to such shares of beneficial interest heretofore given by the undersigned. The undersigned acknowledges receipt of the Proxy Statement and Prospectus dated March 25, 2002. (CONTINUED AND TO BE SIGNED AND DATED ON REVERSE SIDE.) SEE REVERSE SIDE [X] Please mark your votes as in this sample. 1. Approval of an Agreement and Plan of Reorganization pursuant to which substantially all of the assets of the Special Purpose Fixed Income Portfolio will be combined with the assets of the Core Plus Fixed Income Portfolio of Morgan Stanley Institutional Fund Trust, in exchange for shares of the Core Plus Fixed Income Portfolio. FOR AGAINST ABSTAIN [ ] [ ] [ ] THIS PROXY CARD WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED SHAREHOLDER, AND IN THE DISCRETION OF SUCH PROXIES, UPON ANY AND ALL OTHER BUSINESS AS MAY PROPERLY COME BEFORE THE MEETING OR ANY ADJOURNMENT THEREOF. IF NO DIRECTION IS MADE, THIS PROXY CARD WILL BE VOTED FOR APPROVAL OF THE AGREEMENT AND PLAN OF REORGANIZATION FOR THE PORTFOLIO SET FORTH ABOVE. PLEASE SIGN EXACTLY AS YOUR NAME APPEARS. WHEN SHARES ARE HELD BY JOINT TENANTS, EACH JOINT TENANT MUST SIGN. SIGNATURE(S): _______________________ _____________________________________ DATE: _____________________________________________________________, 2002 When signing as attorney, executor, administrator, trustee, guardian or custodian, please sign full title as such. If a corporation, please sign full corporate name by authorized officer and indicate the signer's office. If a partnership, please sign in partnership name. PLEASE MARK, SIGN, DATE AND RETURN THIS PROXY CARD PROMPTLY USING THE ENCLOSED ENVELOPE. MARK HERE FOR ADDRESS CHANGE AND NOTE BELOW [ ]

Dates Referenced Herein   and   Documents Incorporated By Reference

Referenced-On Page
This 497 Filing   Date First   Last      Other Filings
1/31/0141
5/1/01354
9/30/0135524F-2NT, N-30D, NSAR-B
11/27/0154
12/31/01395
1/23/02353
1/31/02354
2/19/02198
Filed On / Filed As Of3/25/02298
3/26/026
5/15/02198
8/15/022145
 
TopList All Filings


Filing Submission 0000950130-02-001883   –   Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Copyright © 2014 Fran Finnegan & Company.  All Rights Reserved.
AboutPrivacyRedactionsHelp — Sun, 20 Apr 11:13:12.1 GMT