497 1 file001.txt DEFINITIVE MATERIALS SUPPLEMENT DATED OCTOBER 1, 2001 TO THE PROSPECTUSES OF (THE FOLLOWING FUNDS ARE KNOWN AS THE "MULTI-CLASS EQUITY FUNDS") MORGAN STANLEY 21ST CENTURY TREND FUND Dated September 29, 2000 MORGAN STANLEY AGGRESSIVE EQUITY FUND Dated September 29, 2000 MORGAN STANLEY ALL STAR GROWTH FUND Dated December 8, 2000 MORGAN STANLEY AMERICAN OPPORTUNITIES FUND Dated February 28, 2001 MORGAN STANLEY BALANCED GROWTH FUND Dated March 12, 2001 MORGAN STANLEY BALANCED INCOME FUND Dated March 12, 2001 MORGAN STANLEY CAPITAL GROWTH SECURITIES Dated December 29, 2000 MORGAN STANLEY COMPETITIVE EDGE FUND "Best Ideas Portfolio" Dated July 30, 2001 MORGAN STANLEY CONVERTIBLE SECURITIES TRUST Dated November 30, 2000 MORGAN STANLEY DEVELOPING GROWTH SECURITIES TRUST Dated November 29, 2000 MORGAN STANLEY DIVIDEND GROWTH SECURITIES INC. Dated April 30, 2001 MORGAN STANLEY EQUITY FUND Dated July 30, 2001 MORGAN STANLEY EUROPEAN GROWTH FUND INC. Dated December 29, 2000 MORGAN STANLEY FINANCIAL SERVICES TRUST Dated July 31, 2001 MORGAN STANLEY FUND OF FUNDS Dated November 30, 2000 MORGAN STANLEY GLOBAL DIVIDEND GROWTH SECURITIES Dated May 31, 2001 MORGAN STANLEY GLOBAL UTILITIES FUND Dated April 30, 2001 MORGAN STANLEY GROWTH FUND Dated May 29, 2001 MORGAN STANLEY HEALTH SCIENCES TRUST Dated September 29, 2000 MORGAN STANLEY INCOME BUILDER FUND Dated November 30, 2000 MORGAN STANLEY INFORMATION FUND Dated May 30, 2001 MORGAN STANLEY INTERNATIONAL FUND Dated December 29, 2000 MORGAN STANLEY INTERNATIONAL SMALLCAP FUND Dated July 31, 2001 MORGAN STANLEY INTERNATIONAL VALUE EQUITY FUND Dated March 1, 2001 MORGAN STANLEY JAPAN FUND Dated July 31, 2001 MORGAN STANLEY KLD SOCIAL INDEX FUND Dated June 18, 2001 MORGAN STANLEY LATIN AMERICAN GROWTH FUND Dated March 30, 2001 MORGAN STANLEY MARKET LEADER TRUST Dated October 31, 2000 MORGAN STANLEY MID-CAP EQUITY TRUST Dated January 31, 2001 MORGAN STANLEY NASDAQ -- 100 INDEX FUND Dated June 18, 2001 MORGAN STANLEY NATURAL RESOURCE DEVELOPMENT SECURITIES INC. Dated April 30, 2001 MORGAN STANLEY NEW DISCOVERIES FUND Dated July 19, 2000 MORGAN STANLEY NEXT GENERATION TRUST Dated September 29, 2000 MORGAN STANLEY PACIFIC GROWTH FUND INC. Dated December 29, 2000 MORGAN STANLEY REAL ESTATE FUND Dated January 31, 2001 MORGAN STANLEY S&P 500 INDEX FUND Dated October 31, 2000 MORGAN STANLEY S&P 500 SELECT FUND Dated April 30, 2001 MORGAN STANLEY SMALL CAP GROWTH FUND Dated April 30, 2001 MORGAN STANLEY SPECIAL VALUE FUND Dated September 29, 2000 MORGAN STANLEY STRATEGIST FUND Dated September 29, 2000 MORGAN STANLEY TAX-MANAGED GROWTH FUND Dated October 30, 2000 MORGAN STANLEY TECHNOLOGY FUND Dated August 17, 2000 MORGAN STANLEY TOTAL MARKET INDEX FUND Dated September 29, 2000 MORGAN STANLEY TOTAL RETURN TRUST Dated September 29, 2000 MORGAN STANLEY UTILITIES FUND Dated March 1, 2001 MORGAN STANLEY VALUE FUND Dated November 30, 2000 MORGAN STANLEY VALUE-ADDED MARKET SERIES/EQUITY PORTFOLIO Dated August 30, 2001 (THE FOLLOWING FUNDS ARE KNOWN AS THE "MULTI-CLASS FIXED-INCOME FUNDS") MORGAN STANLEY CALIFORNIA TAX-FREE INCOME FUND Dated February 28, 2001 MORGAN STANLEY DIVERSIFIED INCOME TRUST Dated January 8, 2001 MORGAN STANLEY FEDERAL SECURITIES TRUST Dated February 12, 2001 60723 MORGAN STANLEY HIGH YIELD SECURITIES INC. Dated October 31, 2000 MORGAN STANLEY INTERMEDIATE INCOME SECURITIES Dated October 31, 2000 MORGAN STANLEY NEW YORK TAX-FREE INCOME FUND Dated February 27, 2001 MORGAN STANLEY TAX-EXEMPT SECURITIES TRUST Dated February 28, 2001 MORGAN STANLEY U.S. GOVERNMENT SECURITIES TRUST Dated February 12, 2001 THE FOLLOWING INFORMATION IS HEREBY INCLUDED AFTER THE FIRST PARAGRAPH OF THE SECTION TITLED "SHARE CLASS ARRANGEMENTS -- CLASS A SHARES" CONTAINED IN THE PROSPECTUSES OF THE ABOVE-MENTIONED "MULTI-CLASS EQUITY FUNDS" AND "MULTI-CLASS FIXED-INCOME FUNDS": The Fund will not accept a purchase order for Class A shares that qualifies for investment in Class D. THE FRONT-END SALES CHARGE SCHEDULE IN THAT SECTION OF THE PROSPECTUSES OF THE "MULTI-CLASS EQUITY FUNDS" IS HEREBY REPLACED IN ITS ENTIRETY WITH THE FOLLOWING:
FRONT-END SALES CHARGE ------------------------------------------------ PERCENTAGE OF PUBLIC APPROXIMATE PERCENTAGE AMOUNT OF SINGLE TRANSACTION OFFERING PRICE OF NET AMOUNT INVESTED ------------------------------------------ ---------------------- ----------------------- Less than $25,000......................... 5.25% 5.54% $25,000 but less than $50,000............. 4.75% 4.99% $50,000 but less than $100,000............ 4.00% 4.17% $100,000 but less than $250,000........... 3.00% 3.09% $250,000 but less than $500,000........... 2.50% 2.56% $500,000 but less than $1 million......... 2.00% 2.04% $1 million and over....................... 0.00% 0.00%
THE FRONT-END SALES CHARGE SCHEDULE IN THAT SECTION OF THE PROSPECTUSES OF THE "MULTI-CLASS FIXED-INCOME FUNDS" IS HEREBY REPLACED IN ITS ENTIRETY WITH THE FOLLOWING:
FRONT-END SALES CHARGE ------------------------------------------------ PERCENTAGE OF PUBLIC APPROXIMATE PERCENTAGE AMOUNT OF SINGLE TRANSACTION OFFERING PRICE OF NET AMOUNT INVESTED ------------------------------------------ ---------------------- ----------------------- Less than $25,000......................... 4.25% 4.44% $25,000 but less than $50,000............. 4.00% 4.17% $50,000 but less than $100,000............ 3.50% 3.63% $100,000 but less than $250,000........... 2.75% 2.83% $250,000 but less than $500,000........... 2.25% 2.30% $500,000 but less than $1 million......... 1.75% 1.78% $1 million and over....................... 0.00% 0.00%
THE FOLLOWING INFORMATION IS HEREBY INCLUDED IN THE SECTION TITLED "SHARE CLASS ARRANGEMENTS -- CLASS B SHARES" CONTAINED IN THE PROSPECTUSES OF THE ABOVE-MENTIONED "MULTI-CLASS EQUITY FUNDS" AND "MULTI-CLASS FIXED-INCOME FUNDS": The Fund will generally not accept a purchase order for Class B shares in the amount of $100,000 or more. THE FOLLOWING INFORMATION IS HEREBY INCLUDED IN THE SECTION TITLED "SHARE CLASS ARRANGEMENTS -- CLASS C SHARES" CONTAINED IN THE PROSPECTUSES OF THE ABOVE-MENTIONED "MULTI-CLASS EQUITY FUNDS" AND "MULTI-CLASS FIXED-INCOME FUNDS": The Fund will not accept a purchase order for Class C shares in the amount of $1 million or more. THE FOLLOWING INFORMATION IS HEREBY INCLUDED IN THE SECTION TITLED "SHARE CLASS ARRANGEMENTS -- CLASS D SHARES" CONTAINED IN THE PROSPECTUSES OF THE ABOVE-MENTIONED "MULTI-CLASS EQUITY FUNDS" AND "MULTI-CLASS FIXED-INCOME FUNDS": A purchase order that meets the requirements for investment in Class D can be made only in Class D shares.