UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM N-PX

               ANNUAL REPORT OF PROXY VOTING RECORD OF REGISTERED
                          MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-7927
                                  ----------------------------------------------

                     Morgan Stanley Financial Services Trust
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               (Exact name of registrant as specified in charter)

1221 Avenue of the Americas, New York, New York                 10020
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    (Address of principal executive offices)                 (Zip code)

                               Amy Doberman, Esq.

                                Managing Director

                     Morgan Stanley Investment Advisors Inc.

                           1221 Avenue of the Americas

                            New York, New York 10020
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                     (Name and address of agent for service)

Registrant's telephone number, including area code: 800-869-6397
                                                   -----------------------------

Date of fiscal year end: 5/31
                        -------------------

Date of reporting period: 7/1/05 - 6/30/06
                         ------------------


******************************* FORM N-Px REPORT *******************************

ICA File Number: 811-07927
Reporting Period: 07/01/2005 - 06/30/2006
Morgan Stanley Financial Services Trust









=================== MORGAN STANLEY FINANCIAL SERVICES TRUST ====================


ALLIANZ AG (FORMERLY ALLIANZ HOLDING AG)

Ticker:                      Security ID:  D03080112
Meeting Date: FEB 8, 2006    Meeting Type: Special
Record Date:

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1     Approve Merger by Absorption of Riunione  For       For        Management
      Adriatica di Sicurta SpA; Approve Change
      of Corporate Form to Societas Europea
      (SE)
2     Issue 25.1 Million Shares in Connection   For       For        Management
      with Merger by Merger by Absorption of
      RIUNIONE ADRIATICA DI SICURTA Societa per
      Azioni
3     Approve Creation of EUR 450 Million Pool  For       For        Management
      of Conditional Capital with Preemptive
      Rights
4     Approve Employee Stock Purchase Plan      For       For        Management
5     Approve Issuance of Convertible Bonds     For       For        Management
      and/or Bonds with Warrants Attached up to
      Aggregate Nominal Amount of EUR 10
      Billion with Preemptive Rights; Approve
      Creation of EUR 250 Million Pool of
      Conditional Capital to Guarantee
      Conversion Rights
6     Authorize Repurchase of up to Five        For       For        Management
      Percent of Issued Share Capital for
      Trading Purposes
7     Authorize Repurchase of up to 10 Percent  For       For        Management
      of Issued Share Capital for Purposes
      other than Trading


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AMERICAN EXPRESS CO.

Ticker:       AXP            Security ID:  025816109
Meeting Date: APR 24, 2006   Meeting Type: Annual
Record Date:  FEB 28, 2006

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1.1   Elect Director Daniel F. Akerson          For       For        Management
1.2   Elect Director Charlene Barshefsky        For       Withhold   Management
1.3   Elect Director Ursula M. Burns            For       For        Management
1.4   Elect Director Kenneth I. Chenault        For       For        Management
1.5   Elect Director Peter Chernin              For       For        Management
1.6   Elect Director Peter R. Dolan             For       For        Management
1.7   Elect Director Vernon E. Jordan, Jr.      For       Withhold   Management
1.8   Elect Director Jan Leschly                For       For        Management
1.9   Elect Director Ricahrd A. McGinn          For       For        Management
1.10  Elect Director Edward D. Miller           For       For        Management
1.11  Elect Director Frank P. Popoff            For       For        Management
1.12  Elect Director Robert D. Walter           For       For        Management
2     Ratify Auditors                           For       For        Management
3     Limit/Prohibit Executive Stock-Based      Against   Against    Shareholder
      Awards
4     Require a Majority Vote for the Election  Against   Against    Shareholder
      of Directors
5     Exclude Reference to Sexual Orientation   Against   Against    Shareholder
      from the Company's EEO Statement
6     Company-Specific -- Reimbursement of      Against   Against    Shareholder
      Expenses for Certain
      Shareholder-Nominated Director Candidates


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AMERICAN INTERNATIONAL GROUP, INC.

Ticker:       AIG            Security ID:  026874107
Meeting Date: AUG 11, 2005   Meeting Type: Annual
Record Date:  JUN 24, 2005

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1.1   Elect Director M. Aidinoff                For       For        Management
1.2   Elect Director P. Chia                    For       For        Management
1.3   Elect Director M. Cohen                   For       For        Management
1.4   Elect Director W. Cohen                   For       For        Management
1.5   Elect Director M. Feldstein               For       For        Management
1.6   Elect Director E. Futter                  For       For        Management
1.7   Elect Director S. Hammerman               For       For        Management
1.8   Elect Director C. Hills                   For       For        Management
1.9   Elect Director R. Holbrooke               For       For        Management
1.10  Elect Director D. Kanak                   For       For        Management
1.11  Elect Director G. Miles, Jr               For       For        Management
1.12  Elect Director M. Offit                   For       For        Management
1.13  Elect Director M. Sullivan                For       For        Management
1.14  Elect Director E. Tse                     For       For        Management
1.15  Elect Director F. Zarb                    For       For        Management
2     Ratify Auditors                           For       For        Management


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AMERIPRISE FINANCIAL, INC.

Ticker:       AMP            Security ID:  03076C106
Meeting Date: APR 26, 2006   Meeting Type: Annual
Record Date:  FEB 28, 2006

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1.1   Elect Director Ira D. Hall                For       For        Management
1.2   Elect Director Jeffrey Noddle             For       For        Management
1.3   Elect Director Richard F. Powers, III     For       For        Management
2     Ratify Auditors                           For       For        Management


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BANCO BILBAO VIZCAYA ARGENTARIA

Ticker:                      Security ID:  E11805103
Meeting Date: MAR 18, 2006   Meeting Type: Annual
Record Date:

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1     Approve Individual and Consolidated       For       For        Management
      Financial Statements and Statutory
      Reports for Fiscal Ended 12-31-05,
      Allocation of Income and Distribution of
      Dividends, and Discharge Directors
2     Fix Number of Directors                   None      None       Management
2.1   Appoint Tomas Alfaro Drake as Director    For       For        Management
2.2   Relect Juan Carlos Alvarez Mezquiriz to   For       For        Management
      Management Board
2.3   Relect Carlos Loring Martinez de Irujo to For       For        Management
      Management Board
2.4   Reelect Susana Rodriguez Vidarte to       For       For        Management
      Management Board
3     Authorize Issuance of Non-Convertible     For       For        Management
      Securities up to Aggregate Nominal Amount
      of EUR 105 Million
4     Authorize Repurchase of Shares by Company For       For        Management
      and/or Subsidiaries; Approve Capital
      Reduction Via Amortization of Shares
5     Reelect Deloitte & Touche Espana S.L. as  For       For        Management
      Auditors for 2006
6     Approve Stock Compensation Plan for       For       For        Management
      Executive Directors, including Executives
      Members of the Board, and Members of the
      Management Committee
7     Amend Article 53 of ByLaws Re: Include    For       For        Management
      the Possibility to Compensate Board
      Members with Stock or Stock Options In
      Connection to the Value of the Shares
8     Approve Non-Executive Director Deferred   For       For        Management
      Stock Compensation
9     Authorize Board to Ratify and Execute     For       For        Management
      Approved Resolutions


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BANK OF AMERICA CORP.

Ticker:       BAC            Security ID:  060505104
Meeting Date: APR 26, 2006   Meeting Type: Annual
Record Date:  MAR 3, 2006

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1.1   Elect Director William Barnet, III        For       For        Management
1.2   Elect Director Frank P. Bramble, Sr.      For       For        Management
1.3   Elect Director John T. Collins            For       For        Management
1.4   Elect Director Gary L. Countryman         For       For        Management
1.5   Elect Director Tommy R. Franks            For       For        Management
1.6   Elect Director Paul Fulton                For       For        Management
1.7   Elect Director Charles K. Gifford         For       For        Management
1.8   Elect Director W. Steven Jones            For       For        Management
1.9   Elect Director Kenneth D. Lewis           For       For        Management
1.10  Elect Director Monica C. Lozano           For       For        Management
1.11  Elect Director Walter E. Massey           For       For        Management
1.12  Elect Director Thomas J. May              For       For        Management
1.13  Elect Director Patricia E. Mitchell       For       For        Management
1.14  Elect Director Thomas M. Ryan             For       For        Management
1.15  Elect Director O. Temple Sloan, Jr.       For       For        Management
1.16  Elect Director Meredith R. Spangler       For       For        Management
1.17  Elect Director Robert L. Tillman          For       For        Management
1.18  Elect Director Jackie M. Ward             For       For        Management
2     Ratify Auditors                           For       For        Management
3     Amend Omnibus Stock Plan                  For       For        Management
4     Publish Political Contributions           Against   Against    Shareholder
5     Require a Majority Vote for the Election  Against   For        Shareholder
      of Directors
6     Provide for an Independent Chairman       Against   For        Shareholder
7     Exclude Reference to Sexual Orientation   Against   Against    Shareholder
      from the Company's EEO Statement


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BERKSHIRE HATHAWAY INC.

Ticker:       BRK.A          Security ID:  084670207
Meeting Date: MAY 6, 2006    Meeting Type: Annual
Record Date:  MAR 8, 2006

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1.1   Elect Director Warren E. Buffett          For       For        Management
1.2   Elect Director Charles T. Munger          For       For        Management
1.3   Elect Director Howard G. Buffett          For       For        Management
1.4   Elect Director Malcolm G. Chace           For       For        Management
1.5   Elect Director William H. Gates, III      For       For        Management
1.6   Elect Director David S. Gottesman         For       For        Management
1.7   Elect Director Charlotte Guyman           For       For        Management
1.8   Elect Director Donald R. Keough           For       For        Management
1.9   Elect Director Thomas S. Murphy           For       For        Management
1.10  Elect Director Ronald L. Olson            For       For        Management
1.11  Elect Director Walter Scott, Jr.          For       For        Management


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BNP PARIBAS SA (FM. BANQUE NATIONALE DE PARIS)

Ticker:       BNPQF          Security ID:  F1058Q238
Meeting Date: MAY 23, 2006   Meeting Type: Annual/Special
Record Date:

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1     Accept Consolidated Financial Statements  For       For        Management
      and Statutory Reports
2     Approve Financial Statements and          For       For        Management
      Statutory Reports
3     Approve Allocation of Income and          For       For        Management
      Dividends of EUR 2.60 per Share
4     Approve Special Auditors' Report          For       For        Management
      Regarding Related-Party Transactions
5     Authorize Repurchase of Up to Ten Percent For       For        Management
      of Issued Share Capital
6     Elect Laurence Parisot as Director        For       For        Management
7     Reelect Claude Bebear as Director         For       For        Management
8     Reelect Jean-Louis Beffa as Director      For       For        Management
9     Reelect Alain Joly as Director            For       For        Management
10    Reelect Denis Kessler as Director         For       For        Management
11    Reelect Michel Pebereau as Director       For       For        Management
12    Ratify Deloitte & Associes as Auditor and For       For        Management
      BEAS as Alternate Auditor
13    Ratify Mazars & Guerard as Auditor and    For       For        Management
      Michel Barbet-Massin as Alternate Auditor
14    Ratify PricewaterhouseCoopers Audit as    For       For        Management
      Auditor and Pierre Coll as Alternate
      Auditor
15    Authorize Filling of Required             For       For        Management
      Documents/Other Formalities
16    Authorize Issuance of Equity or           For       For        Management
      Equity-Linked Securities with Preemptive
      Rights up to Aggregate Nominal Amount of
      EUR 1 Billion
17    Authorize Issuance of Equity or           For       For        Management
      Equity-Linked Securities without
      Preemptive Rights up to Aggregate Nominal
      Amount of EUR 320 Million
18    Authorize Capital Increase of up to 10    For       For        Management
      Percent of Issued Capital for Future
      Acquisitions
19    Authorize Capitalization of Reserves of   For       For        Management
      Up to EUR 1 Billion for Bonus Issue or
      Increase in Par Value
20    Set Global Limit for Capital Increase to  For       For        Management
      Result from All Issuance Requests at EUR
      1 Billion
21    Amend Resolution 14 Adopted by General    For       For        Management
      Meeting on May 18, 2005: Set Global Limit
      for Capital Increase Resulting from
      Granting of Options and Free Shares
22    Approve Employee Savings-Related Share    For       For        Management
      Purchase Plan
23    Approve Reduction in Share Capital via    For       For        Management
      Cancellation of Repurchased Shares
24    Approve Merger by Absorption of Societe   For       For        Management
      Centrale d'Investissements by BNP Paribas
25    Amend Articles Board Related Re:          For       For        Management
      Elections of Employee Representative
26    Authorize Filling of Required             For       For        Management
      Documents/Other Formalities


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CHARLES SCHWAB CORP., THE

Ticker:       SCHW           Security ID:  808513105
Meeting Date: MAY 18, 2006   Meeting Type: Annual
Record Date:  MAR 20, 2006

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1.1   Elect Director Nancy H. Bechtle           For       For        Management
1.2   Elect Director C. Preston Butcher         For       For        Management
1.3   Elect Director Marjorie Magner            For       For        Management
2     Declassify the Board of Directors         For       For        Management
3     Report on Impact of Flat Tax              Against   Against    Shareholder
4     Report on Political Contributions         Against   Against    Shareholder
5     Require a Majority Vote for the Election  Against   For        Shareholder
      of Directors
6     Submit Severance Agreement (Change in     Against   Against    Shareholder
      Control) to shareholder Vote


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CITIGROUP INC.

Ticker:       C              Security ID:  172967101
Meeting Date: APR 18, 2006   Meeting Type: Annual
Record Date:  FEB 24, 2006

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1.1   Elect Director C. Michael Armstrong       For       For        Management
1.2   Elect Director Alain J.P. Belda           For       For        Management
1.3   Elect Director George David               For       For        Management
1.4   Elect Director Kenneth T. Derr            For       For        Management
1.5   Elect Director John M. Deutch             For       For        Management
1.6   Elect Director Roberto Hernandez Ramirez  For       For        Management
1.7   Elect Director Ann Dibble Jordan          For       For        Management
1.8   Elect Director Klaus Kleinfeld            For       For        Management
1.9   Elect Director Andrew N. Liveris          For       For        Management
1.10  Elect Director Dudley C. Mecum            For       For        Management
1.11  Elect Director Anne M. Mulcahy            For       For        Management
1.12  Elect Director Richard D. Parsons         For       For        Management
1.13  Elect Director Charles Prince             For       For        Management
1.14  Elect Director Dr. Judith Rodin           For       For        Management
1.15  Elect Director Robert E. Rubin            For       For        Management
1.16  Elect Director Franklin A. Thomas         For       For        Management
2     Ratify Auditors                           For       For        Management
3     Reduce Supermajority Vote Requirement     For       For        Management
4     Reduce Supermajority Vote Requirement     For       For        Management
5     Reduce Supermajority Vote Requirement     For       For        Management
6     End Issuance of Options and Prohibit      Against   Against    Shareholder
      Repricing
7     Report on Political Contributions         Against   Against    Shareholder
8     Report on Charitable Contributions        Against   Against    Shareholder
9     Performance-Based Equity Awards           Against   For        Shareholder
10    Reimbursement of Expenses Incurred by     Against   Against    Shareholder
      Shareholder(s)
11    Separate Chairman and CEO Positions       Against   For        Shareholder
12    Clawback of Payments Under Restatement    Against   Against    Shareholder


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CITY NATIONAL CORP.

Ticker:       CYN            Security ID:  178566105
Meeting Date: APR 26, 2006   Meeting Type: Annual
Record Date:  MAR 1, 2006

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1.1   Elect Director Kenneth L. Coleman         For       For        Management
1.2   Elect Director Peter M. Thomas            For       For        Management
1.3   Elect Director Christopher J. Warmuth     For       For        Management
2     Ratify Auditors                           For       For        Management


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FIRST REPUBLIC BANK (SAN FRANCISCO)

Ticker:       FRC            Security ID:  336158100
Meeting Date: MAY 10, 2006   Meeting Type: Annual
Record Date:  MAR 31, 2006

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1.1   Elect Director Roger O. Walther           For       For        Management
1.2   Elect Director James H. Herbert, II       For       For        Management
1.3   Elect Director James F. Joy               For       For        Management
1.4   Elect Director George G.C. Parker         For       For        Management
2     Amend Restricted Stock Plan               For       Against    Management
3     Ratify Auditors                           For       For        Management


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FRANKLIN RESOURCES, INC.

Ticker:       BEN            Security ID:  354613101
Meeting Date: JAN 26, 2006   Meeting Type: Annual
Record Date:  NOV 30, 2005

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1.1   Elect Director Samuel H. Armacost         For       For        Management
1.2   Elect Director Harmon E. Burns            For       For        Management
1.3   Elect Director Charles Crocker            For       For        Management
1.4   Elect Director Joseph R. Hardiman         For       For        Management
1.5   Elect Director Robert D. Joffe            For       For        Management
1.6   Elect Director Charles B. Johnson         For       For        Management
1.7   Elect Director Rupert H. Johnson, Jr.     For       For        Management
1.8   Elect Director Thomas H. Kean             For       For        Management
1.9   Elect Director Chutta Ratnathicam         For       For        Management
1.10  Elect Director Peter M. Sacerdote         For       For        Management
1.11  Elect Director Laura Stein                For       For        Management
1.12  Elect Director Anne M. Tatlock            For       For        Management
1.13  Elect Director Louis E. Woodworth         For       For        Management
2     Ratify Auditors                           For       For        Management


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FREDDIE MAC

Ticker:       FRE            Security ID:  313400301
Meeting Date: JUL 15, 2005   Meeting Type: Annual
Record Date:  MAY 27, 2005

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1.1   Elect  Director Barbara T. Alexander      For       For        Management
1.2   Elect  Director Geoffrey T. Boisi         For       For        Management
1.3   Elect  Director Joan E. Donoghue          For       For        Management
1.4   Elect  Director Michelle Engler           For       For        Management
1.5   Elect  Director Richard Karl Goeltz       For       For        Management
1.6   Elect  Director Thomas S. Johnson         For       For        Management
1.7   Elect  Director William M. Lewis, Jr.     For       For        Management
1.8   Elect  Director Eugene M. Mcquade         For       For        Management
1.9   Elect  Director Shaun F. O'Malley         For       For        Management
1.10  Elect  Director Ronald F. Poe             For       For        Management
1.11  Elect  Director Stephen A. Ross           For       For        Management
1.12  Elect  Director Richard F. Syron          For       For        Management
1.13  Elect  Director William J. Turner         For       For        Management
2     Ratify Auditors                           For       For        Management


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GENWORTH FINANCIAL, INC.

Ticker:       GNW            Security ID:  37247D106
Meeting Date: MAY 17, 2006   Meeting Type: Annual
Record Date:  MAR 24, 2006

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1.1   Elect Director Frank J. Borelli           For       For        Management
1.2   Elect Director Michael D. Fraizer         For       For        Management
1.3   Elect Director Nancy J. Karch             For       For        Management
1.4   Elect Director J. Robert Bob Kerrey       For       For        Management
1.5   Elect Director Saiyid T. Naqvi            For       For        Management
1.6   Elect Director James A. Parke             For       For        Management
1.7   Elect Director James S. Riepe             For       For        Management
1.8   Elect Director Thomas B. Wheeler          For       For        Management
2     Ratify Auditors                           For       For        Management


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GOLDMAN SACHS GROUP, INC., THE

Ticker:       GS             Security ID:  38141G104
Meeting Date: MAR 31, 2006   Meeting Type: Annual
Record Date:  JAN 30, 2006

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1.1   Elect Director Lloyd C. Blankfein         For       For        Management
1.2   Elect Director Lord Browne Ofmadingley    For       For        Management
1.3   Elect Director John H. Bryan              For       For        Management
1.4   Elect Director Claes Dahlback             For       For        Management
1.5   Elect Director Stephen Friedman           For       For        Management
1.6   Elect Director William W. George          For       For        Management
1.7   Elect Director James A. Johnson           For       For        Management
1.8   Elect Director Lois D. Juliber            For       For        Management
1.9   Elect Director Edward M. Liddy            For       For        Management
1.10  Elect Director Henry M. Paulson, Jr.      For       For        Management
1.11  Elect Director Ruth J. Simmons            For       For        Management
2     Amend Restricted Partner Compensation     For       For        Management
      Plan
3     Ratify Auditors                           For       For        Management


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HARTFORD FINANCIAL SERVICES GROUP, INC., THE

Ticker:       HIG            Security ID:  416515104
Meeting Date: MAY 17, 2006   Meeting Type: Annual
Record Date:  MAR 20, 2006

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1.1   Elect Director Ramani Ayer                For       For        Management
1.2   Elect Director Ramon de Oliveira          For       For        Management
1.3   Elect Director Edward J. Kelly, III       For       For        Management
1.4   Elect Director Paul G. Kirk, Jr           For       For        Management
1.5   Elect Director Thomas M. Marra            For       For        Management
1.6   Elect Director Gail J. McGovern           For       For        Management
1.7   Elect Director Michael G. Morris          For       For        Management
1.8   Elect Director Robert W. Selander         For       For        Management
1.9   Elect Director Charles B. Strauss         For       For        Management
1.10  Elect Director H. Patrick Swygert         For       For        Management
1.11  Elect Director David K. Zwiener           For       For        Management
2     Ratify Auditors                           For       For        Management


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HYPO REAL ESTATE HOLDING AG

Ticker:                      Security ID:  D3449E108
Meeting Date: MAY 8, 2006    Meeting Type: Annual
Record Date:  APR 17, 2006

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1     Receive Financial Statements and          None      None       Management
      Statutory Reports for Fiscal 2005
2     Approve Allocation of Income and          For       For        Management
      Dividends of EUR 1 per Share
3     Approve Discharge of Management Board for For       For        Management
      Fiscal 2005
4     Approve Discharge of Supervisory Board    For       For        Management
      for Fiscal 2005
5     Approve Creation of EUR 201.1 Million     For       For        Management
      Pool of Capital without Preemptive Rights
6     Authorize Share Repurchase Program and    For       For        Management
      Reissuance of Repurchased Shares
7     Amend Articles Re: Compensation of        For       For        Management
      Supervisory Board Members
8     Amend Articles Re: Appointment of Proxies For       For        Management
9     Ratify KPMG Deutsche                      For       For        Management
      Treuhand-Gesellschaft Aktiengesellschaft
      as Auditors for Fiscal 2006


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KOOKMIN BANK

Ticker:       KB             Security ID:  50049M109
Meeting Date: MAR 24, 2006   Meeting Type: Annual
Record Date:  DEC 29, 2005

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1     APPROVAL OF NON-CONSOLIDATED FINANCIAL    For       For        Management
      STATEMENTS (BALANCE SHEET, INCOME
      STATEMENTS, AND STATEMENTS OF
      APPROPRIATION OF RETAINED EARNINGS) FOR
      THE FISCAL YEAR 2005.
2     AMENDMENT OF THE ARTICLES OF              For       For        Management
      INCORPORATION
3     APPOINTMENT OF DIRECTORS                  For       For        Management
4     APPOINTMENT OF CANDIDATES FOR THE MEMBERS For       For        Management
      OF THE AUDIT COMMITTEE, WHO ARE
      NON-EXECUTIVE DIRECTORS
5     APPROVAL OF PREVIOUSLY GRANTED STOCK      For       For        Management
      OPTIONS
6     GRANT OF STOCK OPTIONS                    For       For        Management


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LEGG MASON, INC.

Ticker:       LM             Security ID:  524901105
Meeting Date: JUL 19, 2005   Meeting Type: Annual
Record Date:  MAY 20, 2005

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1.1   Elect  Director Dennis R. Beresford       For       For        Management
1.2   Elect  Director Edward I. O'Brien         For       For        Management
1.3   Elect  Director Roger W. Schipke          For       For        Management
1.4   Elect  Director Nicholas J. St. George    For       For        Management
2     Amend Executive Incentive Bonus Plan      For       For        Management
3     Approve Non-Employee Director Omnibus     For       For        Management
      Stock Plan


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M & T BANK CORP.

Ticker:       MTB            Security ID:  55261F104
Meeting Date: APR 18, 2006   Meeting Type: Annual
Record Date:  FEB 28, 2006

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1.1   Elect Director Brent D. Baird             For       For        Management
1.2   Elect Director Robert J. Bennett          For       For        Management
1.3   Elect Director C. Angela Bontempo         For       For        Management
1.4   Elect Director Robert T. Brady            For       For        Management
1.5   Elect Director Emerson L. Brumback        For       For        Management
1.6   Elect Director Michael D. Buckley         For       For        Management
1.7   Elect Director T.J. Cunningham III        For       For        Management
1.8   Elect Director Colm E. Doherty            For       For        Management
1.9   Elect Director Richard E. Garman          For       For        Management
1.10  Elect Director Daniel R. Hawbaker         For       For        Management
1.11  Elect Director Patrick W.E. Hodgson       For       For        Management
1.12  Elect Director Richard G. King            For       For        Management
1.13  Elect Director Reginald B. Newman, Ii     For       For        Management
1.14  Elect Director Jorge G. Pereira           For       For        Management
1.15  Elect Director Michael P. Pinto           For       For        Management
1.16  Elect Director Robert E. Sadler, Jr.      For       For        Management
1.17  Elect Director Eugene J. Sheehy           For       For        Management
1.18  Elect Director Stephen G. Sheetz          For       For        Management
1.19  Elect Director Herbert L. Washington      For       For        Management
1.20  Elect Director Robert G. Wilmers          For       For        Management
2     Ratify Auditors                           For       For        Management


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MARSH & MCLENNAN COMPANIES, INC.

Ticker:       MMC            Security ID:  571748102
Meeting Date: MAY 18, 2006   Meeting Type: Annual
Record Date:  MAR 20, 2006

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1.1   Elect Director Leslie M. Baker, Jr.       For       For        Management
1.2   Elect Director Gwendolyn S. King          For       For        Management
1.3   Elect Director Marc D. Oken               For       For        Management
1.4   Elect Director David A. Olsen             For       For        Management
2     Ratify Auditors                           For       For        Management
3     Require a Majority Vote for the Election  Against   For        Shareholder
      of Directors
4     Report on Political Contributions         Against   Against    Shareholder


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MARSHALL & ILSLEY CORP.

Ticker:       MI             Security ID:  571834100
Meeting Date: APR 25, 2006   Meeting Type: Annual
Record Date:  MAR 1, 2006

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1.1   Elect Director Mark F. Furlong            For       For        Management
1.2   Elect Director Ted D. Kellner             For       Withhold   Management
1.3   Elect Director Katharine C. Lyall         For       For        Management
1.4   Elect Director Peter M. Platten, III      For       For        Management
1.5   Elect Director James B. Wigdale           For       For        Management
2     Ratify Auditors                           For       For        Management
3     Approve Omnibus Stock Plan                For       For        Management
4     Declassify the Board of Directors         Against   Against    Shareholder


--------------------------------------------------------------------------------

MBNA CORP.

Ticker:       KRB            Security ID:  55262L100
Meeting Date: NOV 3, 2005    Meeting Type: Special
Record Date:  SEP 2, 2005

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1     Approve Merger Agreement                  For       For        Management
2     Adjourn Meeting                           For       Against    Management


--------------------------------------------------------------------------------

MERRILL LYNCH & CO., INC.

Ticker:       MER            Security ID:  590188108
Meeting Date: APR 28, 2006   Meeting Type: Annual
Record Date:  FEB 27, 2006

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1.1   Elect Director Alberto Cribiore           For       For        Management
1.2   Elect Director Aulana L. Peters           For       For        Management
1.3   Elect Director Charles O. Rossotti        For       For        Management
2     Ratify Auditors                           For       For        Management
3     Restore or Provide for Cumulative Voting  Against   For        Shareholder
4     Compensation- Director Compensation       Against   Against    Shareholder
5     Review Executive Compensation             Against   Against    Shareholder


--------------------------------------------------------------------------------

METLIFE, INC

Ticker:       MET            Security ID:  59156R108
Meeting Date: APR 25, 2006   Meeting Type: Annual
Record Date:  MAR 1, 2006

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1.1   Elect Director C. Robert Henrikson        For       For        Management
1.2   Elect Director John M. Keane              For       For        Management
1.3   Elect Director Hugh B. Price              For       For        Management
1.4   Elect Director Kenton J. Sicchitano       For       For        Management
2     Ratify Auditors                           For       For        Management


--------------------------------------------------------------------------------

MITSUBISHI UFJ FINANCIAL GROUP

Ticker:       8306           Security ID:  606822104
Meeting Date: JUN 29, 2006   Meeting Type: Annual
Record Date:  MAR 30, 2006

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1     APPROVAL OF THE PROPOSED APPROPRIATIONS   For       For        Management
      OF RETAINED EARNINGS AND OTHER CAPITAL
      SURPLUS FOR THE 1ST BUSINESS TERM
2     REDUCTION OF THE LEGAL CAPITAL SURPLUS    For       For        Management
3     PARTIAL AMENDMENTS TO THE ARTICLES OF     For       For        Management
      INCORPORATION
4     ELECTION OF 15 (FIFTEEN) DIRECTORS        For       For        Management
5     GRANTING OF RETIREMENT GRATUITIES TO      For       Against    Management
      RETIRING AND RETIRED DIRECTORS AND
      CORPORATE AUDITORS


--------------------------------------------------------------------------------

MOODY'S CORPORATION

Ticker:       MCO            Security ID:  615369105
Meeting Date: APR 25, 2006   Meeting Type: Annual
Record Date:  MAR 1, 2006

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1.1   Elect Director Ewald Kist                 For       For        Management
1.2   Elect Director Henry A. McKinnell         For       For        Management
1.3   Elect Director John K. Wulff              For       For        Management
2     Ratify Auditors                           For       For        Management
3     Declassify the Board of Directors         Against   Against    Shareholder


--------------------------------------------------------------------------------

MORNINGSTAR, INC.

Ticker:       MORN           Security ID:  617700109
Meeting Date: MAY 23, 2006   Meeting Type: Annual
Record Date:  APR 3, 2006

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1.1   Elect Director Joe Mansueto               For       For        Management
1.2   Elect Director Don Phillips               For       For        Management
1.3   Elect Director Cheryl Francis             For       For        Management
1.4   Elect Director Steve Kaplan               For       For        Management
1.5   Elect Director Jack Noonan                For       For        Management
1.6   Elect Director Paul Sturm                 For       For        Management
2     Ratify Auditors                           For       For        Management


--------------------------------------------------------------------------------

PARTNERRE LTD (FRM. PARTNERRE HOLDINGS LTD. )

Ticker:       PRE            Security ID:  G6852T105
Meeting Date: MAY 12, 2006   Meeting Type: Annual
Record Date:  MAR 17, 2006

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1.1   Elect  Director Robert M. Baylis          For       For        Management
1.2   Elect  Director Jan H. Holsboer           For       For        Management
1.3   Elect  Director Kevin M. Twomey           For       For        Management
2     Ratify Auditors                           For       For        Management
3     Other Business                            For       Against    Management


--------------------------------------------------------------------------------

RAIFFEISEN INTERNATIONAL BANK-HOLDING AG

Ticker:                      Security ID:  A7111G104
Meeting Date: JUN 7, 2006    Meeting Type: Annual
Record Date:

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1     Receive Financial Statements and          None      Did Not    Management
      Statutory Reports                                   Vote
2     Approve Allocation of Income              For       Did Not    Management
                                                          Vote
3     Approve Discharge of Management and       For       Did Not    Management
      Supervisory Board                                   Vote
4     Approve Remuneration of Supervisory Board For       Did Not    Management
      Members                                             Vote
5     Elect Supervisory Board Members           For       Did Not    Management
                                                          Vote
6     Ratify Auditors                           For       Did Not    Management
                                                          Vote
7     Approve Creation of EUR 217.3 Million     For       Did Not    Management
      Pool of Capital without Preemptive Rights           Vote
8     Adopt New Articles of Association         For       Did Not    Management
                                                          Vote
9     Authorize Share Repurchase Program and    For       Did Not    Management
      Reissuance of Repurchased Shares                    Vote


--------------------------------------------------------------------------------

ST. PAUL TRAVELERS COMPANIES, INC., THE

Ticker:       STA            Security ID:  792860108
Meeting Date: MAY 3, 2006    Meeting Type: Annual
Record Date:  MAR 8, 2006

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1.1   Elect Director John H. Dasburg            For       For        Management
1.2   Elect Director Leslie B. Disharoon        For       For        Management
1.3   Elect Director Janet M. Dolan             For       For        Management
1.4   Elect Director Kenneth M. Duberstein      For       For        Management
1.5   Elect Director Jay S. Fishman             For       For        Management
1.6   Elect Director Lawrence G. Graev          For       For        Management
1.7   Elect Director Thomas R. Hodgson          For       For        Management
1.8   Elect Director Robert I. Lipp             For       Withhold   Management
1.9   Elect Director Blythe J. McGarvie         For       For        Management
1.10  Elect Director Glen D. Nelson, M.D.       For       For        Management
1.11  Elect Director Laurie J. Thomsen          For       For        Management
2     Ratify Auditors                           For       For        Management
3     Require a Majority Vote for the Election  Against   For        Shareholder
      of Directors
4     Report on Political Contributions         Against   Against    Shareholder


--------------------------------------------------------------------------------

STATE STREET CORP. (BOSTON)

Ticker:       STT            Security ID:  857477103
Meeting Date: APR 19, 2006   Meeting Type: Annual
Record Date:  FEB 24, 2006

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1.1   Elect Director T. Albright                For       For        Management
1.2   Elect Director K. Burnes                  For       For        Management
1.3   Elect Director N. Darehshori              For       For        Management
1.4   Elect Director A. Goldstein               For       For        Management
1.5   Elect Director D. Gruber                  For       For        Management
1.6   Elect Director L. Hill                    For       For        Management
1.7   Elect Director C. LaMantia                For       For        Management
1.8   Elect Director R. Logue                   For       For        Management
1.9   Elect Director R. Sergel                  For       For        Management
1.10  Elect Director R. Skates                  For       For        Management
1.11  Elect Director G. Summe                   For       For        Management
1.12  Elect Director D. Walsh                   For       For        Management
1.13  Elect Director R. Weissman                For       For        Management
2     Ratify Auditors                           For       For        Management
3     Approve Omnibus Stock Plan                For       For        Management
4     Amend Executive Incentive Bonus Plan      For       For        Management
5     Submit Shareholder Rights Plan (Poison    Against   For        Shareholder
      Pill) to Shareholder Vote


--------------------------------------------------------------------------------

SUNTRUST BANKS, INC.

Ticker:       STI            Security ID:  867914103
Meeting Date: APR 18, 2006   Meeting Type: Annual
Record Date:  FEB 28, 2006

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1.1   Elect Director J. Hyatt Brown             For       Did Not    Management
                                                          Vote
1.2   Elect Director Alston D. Correll          For       Did Not    Management
                                                          Vote
1.3   Elect Director David H. Hughes            For       Did Not    Management
                                                          Vote
1.4   Elect Director E. Neville Isdell          For       Did Not    Management
                                                          Vote
1.5   Elect Director G. Gilmer Minor, III       For       Did Not    Management
                                                          Vote
1.6   Elect Director Thomas M. Garrott          For       Did Not    Management
                                                          Vote
2     Ratify Auditors                           For       Did Not    Management
                                                          Vote
3     Declassify the Board of Directors         Against   Did Not    Shareholder
                                                          Vote


--------------------------------------------------------------------------------

TD AMERITRADE HOLDINGS CORP.

Ticker:       AMTD           Security ID:  03074K100
Meeting Date: JAN 4, 2006    Meeting Type: Special
Record Date:  NOV 16, 2005

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1     Issue Shares in Connection with an        For       Did Not    Management
      Acquisition                                         Vote
2     Amend Articles/Bylaws/Charter-Non-Routine For       Did Not    Management
                                                          Vote
3     Amend Articles/Bylaws/Charter to Include  For       Did Not    Management
      Antitakeover Provision(s)                           Vote
4     Increase Authorized Common Stock          For       Did Not    Management
                                                          Vote
5     Eliminate Right to Act by Written Consent For       Did Not    Management
                                                          Vote
6     Approve Increase in Size of Board         For       Did Not    Management
                                                          Vote
7     Amend Nomination Procedures for the Board For       Did Not    Management
                                                          Vote
8     Approve A Position Which Allocates        For       Did Not    Management
      Corporate Opportunities                             Vote
9     Amend Omnibus Stock Plan                  For       Did Not    Management
                                                          Vote
10    Amend Non-Employee Director Omnibus Stock For       Did Not    Management
      Plan                                                Vote
11    Adjourn Meeting                           For       Did Not    Management
                                                          Vote


--------------------------------------------------------------------------------

TD AMERITRADE HOLDINGS CORP.

Ticker:       AMTD           Security ID:  03074K100
Meeting Date: MAR 9, 2006    Meeting Type: Annual
Record Date:  JAN 26, 2006

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1.1   Elect Director W. Edmund Clark            For       Withhold   Management
1.2   Elect Director Michael D. Fleisher        For       For        Management
1.3   Elect Director Glenn H. Hutchins          For       For        Management
1.4   Elect Director Joseph H. Moglia           For       Withhold   Management
1.5   Elect Director Thomas S. Ricketts         For       Withhold   Management
2     Ratify Auditors                           For       For        Management
3     Amend Omnibus Stock Plan                  For       For        Management
4     Other Business                            For       Against    Management


--------------------------------------------------------------------------------

UBS AG

Ticker:       UBS            Security ID:  H8920M855
Meeting Date: APR 19, 2006   Meeting Type: Annual
Record Date:  MAR 17, 2006

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1     ANNUAL REPORT, GROUP AND PARENT COMPANY   For       For        Management
      ACCOUNTS FOR FINANCIAL YEAR 2005 REPORTS
      OF THE GROUP AND STATUTORY AUDITORS
2     APPROPRIATION OF RETAINED EARNINGS        For       For        Management
      DIVIDEND FOR FINANCIAL YEAR 2005
3     DISCHARGE OF THE MEMBERS OF THE BOARD OF  For       For        Management
      DIRECTORS AND THE GROUP EXECUTIVE BOARD
4     RE-ELECTION OF BOARD MEMBER: ROLF A.      For       For        Management
      MEYER
5     RE-ELECTION OF BOARD MEMBER: ERNESTO      For       For        Management
      BERTARELLI
6     ELECTION OF NEW BOARD MEMBER: GABRIELLE   For       For        Management
      KAUFMANN-KOHLER
7     ELECTION OF NEW BOARD MEMBER: JOERG WOLLE For       For        Management
8     ELECTION OF THE GROUP AND STATUTORY       For       For        Management
      AUDITORS
9     ELECTION OF THE SPECIAL AUDITORS          For       For        Management
10    CANCELLATION OF SHARES REPURCHASED UNDER  For       For        Management
      THE 2005/2006 SHARE BUYBACK PROGRAM
11    APPROVAL OF NEW SHARE BUYBACK PROGRAM FOR For       For        Management
      2006/2007
12    ONE-TIME PAYOUT IN THE FORM OF A PAR      For       For        Management
      VALUE REPAYMENT
13    SHARE SPLIT                               For       For        Management
14    AMENDMENTS TO ARTICLE 4 PARA. 1 AND       For       For        Management
      ARTICLE 4A OF THE ARTICLES OF ASSOCIATION
15    REDUCTION OF THE THRESHOLD VALUE FOR      For       For        Management
      AGENDA ITEM REQUESTS (ARTICLE 12 PARA. 1
      OF THE ARTICLES OF ASSOCIATION)
16    CREATION OF CONDITIONAL CAPITAL, APPROVAL For       Against    Management
      OF ARTICLE 4A PARA. 2 OF THE ARTICLES OF
      ASSOCIATION


--------------------------------------------------------------------------------

WACHOVIA CORP.

Ticker:       WB             Security ID:  929903102
Meeting Date: APR 18, 2006   Meeting Type: Annual
Record Date:  FEB 22, 2006

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1.1   Elect Director William H. Goodwin, Jr.    For       Did Not    Management
                                                          Vote
1.2   Elect Director Robert A. Ingram           For       Did Not    Management
                                                          Vote
1.3   Elect Director Mackey J. McDonald         For       Did Not    Management
                                                          Vote
1.4   Elect Director Lanty L. Smith             For       Did Not    Management
                                                          Vote
1.5   Elect Director Ruth G. Shaw               For       Did Not    Management
                                                          Vote
1.6   Elect Director Ernest S. Rady             For       Did Not    Management
                                                          Vote
2     Ratify Auditors                           For       Did Not    Management
                                                          Vote
3     Submit Severance Agreement (Change in     Against   Did Not    Shareholder
      Control) to shareholder Vote                        Vote
4     Report on Political Contributions         Against   Did Not    Shareholder
                                                          Vote
5     Separate Chairman and CEO Positions       Against   Did Not    Shareholder
                                                          Vote
6     Require a Majority Vote for the Election  Against   Did Not    Shareholder
      of Directors                                        Vote


--------------------------------------------------------------------------------

WELLS FARGO & COMPANY

Ticker:       WFC            Security ID:  949746101
Meeting Date: APR 25, 2006   Meeting Type: Annual
Record Date:  MAR 7, 2006

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1.1   Elect Director Lloyd H. Dean              For       For        Management
1.2   Elect Director Susan E. Engel             For       For        Management
1.3   Elect Director Enrique Hernandez, Jr.     For       For        Management
1.4   Elect Director Robert L. Joss             For       For        Management
1.5   Elect Director Richard M. Kovacevich      For       For        Management
1.6   Elect Director Richard D. McCormick       For       For        Management
1.7   Elect Director Cynthia H. Milligan        For       Withhold   Management
1.8   Elect Director Nicholas G. Moore          For       For        Management
1.9   Elect Director Philip J. Quigley          For       Withhold   Management
1.10  Elect Director Donald B. Rice             For       Withhold   Management
1.11  Elect Director Judith M. Runstad          For       For        Management
1.12  Elect Director Stephen W. Sanger          For       For        Management
1.13  Elect Director Susan G. Swenson           For       For        Management
1.14  Elect Director Michael W. Wright          For       Withhold   Management
2     Ratify Auditors                           For       For        Management
3     Require a Majority Vote for the Election  Against   For        Shareholder
      of Directors
4     Separate Chairman and CEO Positions       Against   Against    Shareholder
5     Compensation- Director Compensation       Against   Against    Shareholder
6     Report on Discrimination in Lending       Against   Against    Shareholder


--------------------------------------------------------------------------------

WILMINGTON TRUST CORP.

Ticker:       WL             Security ID:  971807102
Meeting Date: APR 20, 2006   Meeting Type: Annual
Record Date:  FEB 21, 2006

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1.1   Elect Director Ted T. Cecala              For       For        Management
1.2   Elect Director David P. Roselle           For       For        Management


--------------------------------------------------------------------------------

XL CAPITAL LTD (FORMERLY EXEL LTD. )

Ticker:       XL             Security ID:  G98255105
Meeting Date: APR 28, 2006   Meeting Type: Annual
Record Date:  MAR 15, 2006

#     Proposal                                  Mgt Rec   Vote Cast  Sponsor
1.1   Elect  Director Dale R. Comey             For       For        Management
1.2   Elect  Director Brian M. O'Hara           For       For        Management
1.3   Elect  Director John T. Thornton          For       For        Management
2     TO RATIFY THE APPOINTMENT OF              For       For        Management
      PRICEWATERHOUSECOOPERS LLP, NEW YORK, NEW
      YORK TO ACT AS THE INDEPENDENT REGISTERED
      PUBLIC ACCOUNTING FIRM OF THE COMPANY FOR
      THE FISCAL YEAR ENDING DECEMBER 31, 2006.
3     Other Business                            For       Against    Management

========== END NPX REPORT



                                   SIGNATURES

     Pursuant to the requirements of the Investment Company Act of 1940, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

(Registrant): Morgan Stanley Financial Services Trust
             ----------------------------------------
By (Signature and Title):


                               /s/ Ronald E. Robison

          President and Principal Executive Officer - Office of the Funds
     ---------------------------------------------------------------------------

Date August 28, 2006
     ---------------

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