Morgan Stanley Investment Management M O R G A N

S

T Morgan Stanley SICAV A N L E Y

Quarterly Report S I C A

V March 2008 M

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Morgan Bond, European High Yield Bond and Short Maturity Euro trends and variations in rental income, changes in zonal Stanley SICAV is an umbrella Societe d'Investissement à Bond; is calculated in euro with performance prior to 1 laws, casualty or condemnation losses, environmental 122 Glossary Capital Variable authorised under Part 1 of the Law of 20 January 1999 restated in ECU. risks, regulatory limitations on rents, changes in December 2002. The company is a self managed SICAV in neighbourhood values, related party risks, changes in the accordance with article 27 of the law of 20 December 2002. The sources for all performance and index data are Morningstar appeal of properties to tenants, increases in interest rates 124 Contact your sales team Morgan Stanley Investment Management Limited will act as and Morgan Stanley Investment Management Limited. and other real estate capital market influences. Generally, Distributor of the shares of each fund. 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Fund list EQUITY FUNDS 8 American Franchise Fund 40 Euro Bond Fund 9 Asian Equity Fund 41 Euro Corporate Bond Fund 10 Asian Property Fund 42 Euro Strategic Bond Fund 11 Emerging Europe, Middle East 43 Euro Total Return Bond Fund and North Africa Equity Fund 44 European Currencies 12 Emerging Markets Equity Fund High Yield Bond Fund 13 European Equity Fund 45 Global Bond Fund 14 European Equity Opportunities Fund 46 Global Convertible 15 European Optimised Bond (Euro) Fund Research Extension Fund 47 Global Convertible 16 European Property Fund Bond (USD) Fund 17 European Small Cap Value Fund 48 Short Maturity Euro Bond Fund 18 European Systematic Equity Fund 49 US Bond Fund 19 Eurozone Equity Opportunities Fund 50 US Dollar Short Duration Fund 20 Global Brands Fund 21 Global Equity Growth Fund LIQUIDITY FUNDS 22 Global Property Fund 51 Euro Liquidity Fund 23 Global Small Cap Value Fund 52 US Dollar Liquidity Fund 24 Global Systematic Equity Fund 25 Global Value Equity Fund ASSET ALLOCATION FUNDS 26 Indian Equity Fund 53 Global Diversified (Euro) Fund 27 Japanese Equity Advantage Fund 54 Global Diversified (USD) Fund 28 Japanese Equity Growth Fund 29 Japanese Systematic Equity Fund 30 Japanese Value Equity Fund ALTERNATIVE FUNDS 31 Latin American Equity Fund 55 Commodities Alpha Plus Fund 32 US Equity Fund 56 FX Alpha Plus RC 200 (Euro) Fund 33 US Equity Growth Fund 57 FX Alpha Plus RC 200 (Sterling) Fund 34 US Property Fund 58 FX Alpha Plus RC 200 (US Dollar) Fund 35 US Small Cap Growth Fund 59 FX Alpha Plus RC 400 (Euro) Fund 36 US Systematic Equity Fund 60 FX Alpha Plus RC 400 (Sterling) Fund 37 US Value Equity Fund 61 FX Alpha Plus RC 400 (US Dollar) Fund 62 FX Alpha Plus RC 800 (Euro) Fund BOND FUNDS 63 FX Alpha Plus RC 800 (Sterling) Fund 64 FX Alpha Plus RC 800 (US Dollar) Fund 38 Emerging Markets Debt Fund 39 Emerging Markets Domestic Debt Fund

Morgan Stanley SICAV Quarterly Report - March 2008 1 Market outlook

GLOBAL The extent of the credit crisis was felt at the heart of Wall Street this month with the implosion of the once-venerable investment bank Bear Stearns. Policymakers in the US met the threat of catastrophe with some extraordinary manoeuvres. On 18 March, the Federal Reserve slashed interest rates by 75 basis points, adding to big cuts over recent months. As the takeover of Bear Stearns was being finalised, the Fed extended lending through its discount window, usually reserved for commercial banks, to all bond dealers; for the first time, investment banks have a lender of last resort.

Other central banks have been doling out liquidity too. The Bank of England, the Bank of Japan and the European Central Bank (ECB) have all jumped on the bandwagon, although none has eased monetary policy with anything like the Fed’s urgency. Whereas the Fed fears recession and financial collapse, most central banks elsewhere are more worried about inflation.

The gap between the Fed and the rest can be clearly seen in the currency markets. The dollar has tumbled; against other leading currencies, the greenback is at its weakest since the era of floating exchange rates began in 1973. On 13 March it fell below ¥100 for the first time in 12 years. It also sank to new lows against the euro and the Swiss franc over the month. As the dollar fell, the price of commodities priced in dollars jumped and oil climbed to well over $100 a barrel. Gold soared above $1,000 an ounce.

On the economic front, there were fresh signs that America’s economy is in trouble. The Consumer Confidence Index fell from 76.4 in February to a five-year low of 64.5 in March. The S&P/Case-Shiller Home-Price Index, which covers ten large cities, fell by 11.4% in the year to January, the largest decline since the series began in 1987. Sales of new homes fell by 1.8% in February, to the lowest level in 13 years. The one bright spot was a 2.9% rise in sales of existing homes in February, but that still left them 23.8% lower than a year earlier.

By contrast, prospects for the euro area economy seem a little rosier. Business confidence in Germany rose for a third successive month in March. INSEE, France’s statistics agency, reported a surprise pick-up in that country’s business confidence. Italian business did not share the good cheer. The ISAE’s sentiment gauge slipped to its lowest level since August 2005.

Stock markets posted another month of lacklustre returns in what was a very volatile and momentum driven market. Financial stocks bore the brunt of the volatility, although most experienced a significant comeback in the last week of the month as investors viewed many of the larger banks as oversold and amid support from the Federal Reserve. The worldwide volume of mergers and acquisitions fell to its lowest level in four years in the first quarter of 2008 as the credit squeeze and market turmoil continued to put a brake on deal-making activity.

2 Morgan Stanley SICAV Quarterly Report - March 2008 UNITED STATES Economics This month saw a number of substantive moves by the Federal Reserve, and other US government agencies, to stabilise financial markets, which were unsettled following the bailing out (i.e. purchase of) distressed investment bank Bear Stearns by JPMorgan Chase. The Federal Open Market Committee cut the Federal Funds target by 0.75% (slightly less than many market participants had envisaged) to 2.25%. The Committee also reduced the discount rate, at which the Federal Reserve provides emergency funding to banks, by 1.00% (in two stages) to 2.5%. The US dollar slipped to new lows against the euro, as the latest US inflation figures showed that the Committee has cut official interest rates to levels that are negative in real terms.

Federal Reserve officials continued to paint a somber picture of the economic outlook. One Fed official said hopes of a short and shallow downturn were probably misguided. Another said that the Fed’s hands-off approach to asset bubbles might not be such a good idea as the turmoil from the collapse of the housing market boom threatens to choke off the financial oxygen needed for a healthy economy. There was certainly little sense that the extraordinary actions and rate cuts the Fed has engineered in recent months could soon end. The most specific forecast came from Atlanta Fed president Dennis Lockhart, who said that his previous forecast of a turnaround by mid-year was probably too optimistic: "The recovery in growth I had expected in the second half of this year may be delayed." He claimed home prices were unlikely to bottom out until then and "preconditions" of stability in financial markets were likely to be absent until the fourth quarter.

Most economists believe that the US slipped into recession in the early part of this year. Consumer confidence fell to a five-year low over the month, durable goods orders fell significantly, underlining the impact of the slowing economy and weakening consumer confidence on business spending. According to the Commerce Department, corporate profits fell 3.3% in the final three months of 2007, much more than the 0.1% drop that economists had predicted, amid one of the worst banking crises in decades. The S&P/Case-Shiller Index of US home prices showed a sharp decline in January. The slide in home prices is the biggest monthly drop on record and dampens hopes that the US housing market may be close to a bottom. A rise in existing home sales and the less than expected fall in newly built house sales are positive indicators for housing and the financial markets, but it is not clear evidence that residential real estate is about to immediately improve. A sideways pattern appears to be emerging.

Equities US stock markets continued the month in volatile territory. Further shocks in the banking industry, including the bail-out of investment bank Bear Stearns, coupled with poor economic data meant indices failed to hold on to the gains made during a mid-month rally. US stocks extended their worst quarterly decline since 2002, falling in the last week of the month on the prospect of dividend cuts and deeper earnings declines for financial companies. Banks and brokerages had the biggest weekly slump in two months after analysts at Goldman Sachs Group Inc., Sanford

Morgan Stanley SICAV Quarterly Report - March 2008 3 C. Bernstein & Co. and Lehman Brothers Holdings Inc. said that financial company earnings would be less than previously estimated.

Bonds Treasuries declined this month even as reports indicated the economy is losing momentum. Two-year notes posted back-to-back weekly losses for the first time since December. The rates on three-month Treasury bills posted the biggest weekly jump in 26 years as the Federal Reserve’s steps to add liquidity to financial markets diminished demand for the safest assets. In a sign traders are favouring longer-maturity debt, more sensitive to inflation expectations than shorter-dated securities, the yield gap between two and 10-year notes narrowed.

EUROPE Economics – Continental Europe The Governing Council of the ECB kept interest rates unchanged at 4.00% this month. At the press conference to discuss the Council’s decision, ECB President Jean-Claude Trichet noted that there remained upwards pressure on inflation in the euro area in the short term, “There are upside risks to price stability over the medium term, in a context of very vigorous money and credit growth.” According to Eurostat, HICP inflation across the euro area was unchanged at 3.2% in February, or well above the ECB’s 2% target.

Like its counterparts elsewhere, the ECB increased the liquidity available to banks (specifically 15 billion euro at 4.2%) in order to reduce the tension in financial markets. Nevertheless, overnight rates rose suggesting banks are hoarding cash despite attempts by policy makers to revive lending. Overall, however, most news from the euro area highlighted how policy-makers are, and have grounds to be, reasonably upbeat about current economic conditions.

In a separate speech to the European Parliament, Mr Trichet noted, “The economic fundamentals of the euro area are sound. Incoming macroeconomic data point to moderating but ongoing real GDP growth.” He added that, “employment and labour force participation have increased substantially and unemployment rates have fallen to levels not seen for 25 years”. Over the month National statistics bureau INSEE said that industrial production in France unexpectedly rose 0.5% in January from the previous month, spurred by record exports. For the region as a whole, industrial output rose much more than expected. In Germany, figures showed that exports rose by 3.8% in January compared with December, the biggest monthly increase since September 2006. Meanwhile, the German ZEW Index of investor confidence unexpectedly rose for a second month in March, suggesting that Euroland’s largest economy is coping with the euro’s appreciation. The German Ifo survey showed businesses’ assessment of current conditions was at 104.8 in March, up from 104.1 in February. The index has now reached the highest level since August last year. In France, business confidence also rose unexpectedly to the highest level this year.

Equities Despite a rally in the last week of the month, most indices closed the month little

4 Morgan Stanley SICAV Quarterly Report - March 2008 changed from the levels at which they started. Volatility continued to prevail, particularly among the more sensitive financial stocks. However, European banking stocks had their biggest weekly gain since November after Swiss Life Holding reported higher-than-estimated profit and JPMorgan Chase & Co.’s increased bid for Bear Stearns eased concern financial firms would collapse. Allianz SE, Europe’s biggest insurer, and UBS AG, the region’s largest bank by assets, paced the rally. HBOS Plc, Britain’s biggest mortgage lender, rose the most in more than six years after the company’s executives bought shares in the bank. BHP Billiton Ltd. and Rio Tinto Group led mining stocks higher.

Bonds European two-year government notes fell for a second week after central bank council member Axel Weber said interest rates may need to be raised to contain “alarming” price pressures. Two-year German notes also headed for their biggest monthly decline in four years after Italy sold 6.5 billion euros ($10.3 billion) of securities. Traders pared bets the ECB will cut interest rates this year after a government report showed inflation in Germany, the euro region’s biggest economy, held above its target for a 13th month in March.

JAPAN Economics Official statistics showed that capital spending by Japanese companies fell by 7.7%, more than expected, in 4Q07. This was the sharpest fall in capital spending in five years. The Ministry of Finance also published data, which showed that companies’ recurring earnings fell, in year-on-year terms, for the second consecutive quarter because of higher costs of raw materials and, in particular, fuel. Going forward, the strength of the yen, which reached a three-year high against the US dollar over the month, will also probably constrain company profits. Government data also showed Japanese companies have turned pessimistic about business conditions, as a spike in oil and many other raw material costs have squeezed profit margins.

For the second consecutive month, Japan’s Cabinet Office lowered its assessment of the country’s economic prospects and in doing so, added to concerns that the economy is losing momentum. Official statistics showed that, in January, output fell by 2.2%, or by the most in a year. The Cabinet Office also noted that volatility in global financial markets (and in particular, the weakness of the major Japanese stockmarket indices) had been unhelpful. A significant positive development, however, has been the recovery in housing starts, which have slumped over the last nine months as a result of the introduction of new regulations. In addition, Japan’s exports rose a little more than expected in February from a year earlier as solid shipments of goods to Asia and Europe made up for a fall in exports to the US.

Some analysts doubt if Japan will really decouple from the US economy in coming months. They remain worried about the outlook for the US economy, which remains a major, if no longer the largest, destination for Japanese exports. Economists have warned that exports, the key driver of Japan’s economic recovery, could lose steam in the first half of this year as the global credit turmoil shows no sign of abating. Economists now expect the Bank of Japan’s closely watched Tankan

Morgan Stanley SICAV Quarterly Report - March 2008 5 survey, due out on 1 April, to show a broad slide in the business mood as well as lacklustre capital spending plans. The central bank, now without a full-time governor for the first time in more than 80 years, is expected to keep interest rates on hold at 0.5% for the time being.

Equities Despite a month-end rally that saw Japanese stocks post their biggest weekly gain in more than a month, indices finished the month little changed. The month-end rally was spurred by real estate and commodity related companies. Aeon Mall Co., Japan’s biggest shopping mall developer, jumped the most in six months, leading an advance by real-estate companies. Mitsubishi Corp. led trading houses higher after metal prices jumped, while Inpex Holdings Inc., the nation’s largest oil and gas explorer, gained on crude prices.

Bonds Benchmark notes halted two consecutive weeks of losses after government reports showed the jobless rate unexpectedly climbed to 3.9%, the highest since October, and job vacancies slid to a two-year low. A Bank of Japan report on 1 April is likely to show confidence among Japan's largest manufacturers declined to its lowest level in four years. Japan’s five-year notes rose on speculation signs of an economic slowdown, backing the case for the central bank to cut interest rates this year. The economy is in a vicious cycle in which employment and wages don't expand and consumption shrinks, supporting bonds.

ASIA, EX-JAPAN Economics In its annual report, the UN’s Economic and Social Commission for Asia and the Pacific said that Asian economies remained relatively immune to the credit crunch in the US and Europe, but faced heightened uncertainty as the sub-prime crisis continued to unravel. The report cited Taiwan, Singapore and South Korea as being the most vulnerable to the impact of a US recession and further declines in the dollar, given their dependence on high-technology exports. Indonesia, Thailand and the Philippines would likely suffer to a lesser degree. Growth in the region was forecast to moderate this year but was predicted to be a robust 7.7%.

Even with a relative slowdown in the pace of growth in exports, China remains on track to record another huge trade surplus this year, of about $260bn according to one estimate. However, February’s inflation rate of 8.7% was the highest in 12 years, raising fears that China’s inflation could feed into higher prices elsewhere. The implications of the higher-than-expected data are that China’s monetary policy will have to be tightened more aggressively, policy uncertainty from other ad hoc measures will intensify and growth will face further downside risks.

Elsewhere, the Bank of Korea noted that South Korea achieved economic growth of 1.6% in 4Q07, as both exports and business investment picked up. Year-on-year growth was revised to 5.7%, the fastest pace for nearly two years. Corporate and construction investment rose by 2.1% and 1.2% respectively in 4Q07. However, private consumption growth slowed from 1.3% in 3Q07 to 0.8% in 4Q07. India’s

6 Morgan Stanley SICAV Quarterly Report - March 2008 economy may grow at the slowest pace in four years in the next 12 months as a global slowdown reduces foreign investment and curbs exports, according to Finance Minister Palaniappan Chidambaram. However, the country is still expected to grow by 8% in 2008-9.

Equities In line with global trends, Asian stocks registered strong gains in the last week of the month but registered only marginal gains over the month as a whole. The MSCI Asia Pacific Index climbed 4.3% in the last week of the month, the most since November 2007. The measure pared its loss this year to 10%. China’s benchmark stock index rose the most in almost two months, led by financial companies, as some investors judged a near 30% decline in the benchmark index this year as overdone. Equities also rose on speculation the government will cut a tax on stock transactions and tighten criteria for companies seeking to sell additional shares.

LATIN AMERICA Economics Brazil’s economy expanded by a greater-than-expected 6.2% in the fourth quarter of 2007, the fastest year-on-year quarterly expansion since June 2004. However, Brazil’s central bank admitted for the first time that it sees 2008 inflation rising above its annual target of 4.5%, boosting speculation the monetary policy board may raise interest rates in the months ahead to rein in prices. Policy makers increased their inflation forecast for this year to 4.6% from 4.3%. Inflation is also accelerating in Mexico, where economists now doubt the Mexican central bank’s ability to cut interest rates should the economy begin to slow. Consumer prices climbed 0.48% in the first half of March after increasing 0.13% in the same period a month earlier. Annual inflation surged to 4.24%, the highest since October 2006. Meanwhile, Colombia’s central bank kept its benchmark rate unchanged as its board bet 15 rate increases in two years will be enough to control inflation. A divided board is battling to reduce inflation that exceeds the bank’s targets, while at the same time avoiding raising rates to the point they would cut economic growth and fuel gains in the peso, putting exporters at a disadvantage.

Equities Equity markets had another volatile month in Latin America. The Brazilian Bovespa failed to end the month in positive territory as an analyst downgrade of pulp and paper producer Aracruz Celulose SA and a decline in bank shares overshadowed better performance in other sectors. Banco do Brasil SA, Brazil's biggest bank, fell to its lowest level in 11 months, on concern that higher interest rates may curb lending. In Mexico, the Bolsa Index rose to its highest point in a month.

This document represents the views of the Global Asset Allocation Group at Morgan Stanley Investment Management (MSIM). It does not reflect the opinions of all portfolio managers at MSIM and may not be reflected in the strategies and products that the

Firm offers. The document has been prepared as information for investors and it is not a recommendation to buy or sell any particular security or to adopt any investment strategy. Investors should consult their professional advisers for any advice on whether a course of action is suitable. The author's views are subject to change without notice to the recipients of this document.

Morgan Stanley SICAV Quarterly Report - March 2008 7 Morgan Stanley SICAV 31 MARCH 2008 American Franchise Fund

RETURNS VS. INDEX Portfolio valuations Class I Index Fund (net of fees) % Peer Group P/CF 10.52 9.46 (USD) (EUR) Ranking P/BV 5.34 2.44 1 2 Period I A B Index IH AH Index (USD) P/E 14.25 13.48 One month 0.08 0.04 (0.08) (0.43) - 0.05 (4.50) 40/437 Yield 3.04 2.19 Last three months (5.86) (6.01) (6.25) (9.45) - (6.02) (16.20) 23/437 Number of holdings 25 500 YTD 2008 (5.86) (6.01) (6.25) (9.45) - (6.02) (16.20) 23/437 One year (9.41) (10.10) (10.96) (5.08) - (10.88) (20.83) 309/414 Top 10 holdings % Since inception (annualised) 2.66 - - 4.58 - - - - REYNOLDS AMERICAN INC 6.96 12 months to: PHILIP MORRIS INC 6.42 March 2008 (9.41) (10.10) (10.96) (5.08) - - - - JOHNSON & JOHNSON 6.31 March 2007 12.92 12.30 11.15 11.83 - - - - PROCTER & GAMBLE CO. 6.01 CADBURY SCHWEPPES PLC 4.96 Past performance is no indication of current or future performance. These performance data do not take account of ACCENTURE LTD, BERMUDA 4.95 commissions and costs incurred on the issue and redemption of units. KELLOGG CO. 4.62 WEIGHT WATCHERS INTL INC 4.61 CLASS I SHARES VS. S&P 500 INDEX3 KIMBERLY-CLARK CORP 4.50 Performance of 100 US dollars invested since inception NESTLE S.A. 4.24 Total 53.58 135 Fund 130 Sector distribution % 125 Index a) Consumer Staples 51.82 g e f b) Consumer Discretionary 23.20 120 d c) Health Care 11.60 115 d) Information Technology 4.95 c e) Materials 2.48 110 Cash value f) Financials 2.38 105 a g) Cash & equivalents 3.56 Total 100.00 100

95 b Dec 05 Feb 07 Mar 08

Facts and figures

Launch date December 2005 ISIN Class I LU0225741247 FUND AIM Fund manager Hassan Elmasry ISIN Class A LU0225737302 Seeks long-term capital appreciation, measured in US dollars, through Michael Allison ISIN Class B LU0225744001 investment primarily in equity securities of companies domiciled or Paras Dodhia ISIN Class IH LU0266118651 exercising the predominant part of their economic activity in the US. John Kelly-Jones ISIN Class AH LU0266117927 Jayson Vowles INVESTMENT IMPLEMENTATION Location London Base currency US dollars Disciplined, value-oriented, bottom-up approach to stock selection TER Class I4 1.03 focusing on absolute return produces a highly concentrated TER Class A4 1.80 portfolio of great franchise businesses located in the US. Total assets $ 187.8 million In-depth fundamental research aims to identify companies with NAV $ 26.68 difficult to replicate intangible assets, high free cash flow, repeat businesses, sustainable high ROCE and strong management. Risk management helps to reduce absolute risk by focusing on business and valuation risks.

Publication date: 16 April 2008. 1 Launch date of Class I, Class A & Class B shares was December 2005. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Equity North America sector. 2 Launch date of euro hedged share classes AH and IH was October 2006. Benchmark is S&P 500 Index Euro Hedged. AH and IH only available in all European jurisdictions (ex UK). All investor money in the IH share class was redeemed in August 2007. However, the share class remains open to investment. 3 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 4 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). Please refer to back cover for important information and risk warnings.

8 Morgan Stanley SICAV Quarterly Report - March 2008 Morgan Stanley SICAV 31 MARCH 2008 Asian Equity Fund

1,2 RETURNS IN US DOLLARS VS. MSCI AC FAR EAST FREE EX JAPAN INDEX Portfolio valuations Class I Index Fund (net of fees) % P/CF 10.60 9.83 Peer Group P/BV 2.37 2.16 Period Class I Class A Class B Index Ranking P/E 16.18 15.37 One month (6.12) (6.17) (6.26) (5.29) 120/222 Yield 9.16 2.47 Last three months (14.91) (15.05) (15.26) (12.71) 139/221 Number of holdings 116 572 YTD 2008 (14.91) (15.05) (15.26) (12.71) 139/221 One year 16.36 15.56 14.39 17.58 89/214 Top 10 holdings % Three years (annualised) 23.73 22.85 21.62 23.27 80/183 Five years (annualised) 29.88 28.97 27.69 28.47 39/158 CHINA MOBILE HONG KONG LTD 4.83 Ten years (annualised) 11.53 10.84 9.72 9.76 41/92 SAMSUNG ELECTRONICS CO. LTD 3.22 Since inception (annualised) 9.45 - - 9.07 - CHINA CONSTRUCTION BANK 2.86 AU OPTRONICS CORP 2.61 12 months to: HYUNDAI MOTOR CO. 2.16 March 2008 16.36 15.56 14.39 17.58 - CHINA COSCO HOLDINGS 2.15 March 2007 25.57 24.68 23.41 23.52 - INDUST & COMM BANK OF CHINA 2.09 March 2006 29.63 28.70 27.45 28.99 - CHINA COAL ENERGY H SHS 2.08 March 2005 10.52 9.72 8.67 9.87 - GOME ELECTRICAL APPLIANCES HOLDI 1.90 March 2004 76.57 75.41 73.65 70.00 - PING AN INSURANCE COMPANY 1.81 Total 25.71 Past performance is no indication of current or future performance. These performance data do not take account of commissions and costs incurred on the issue and redemption of units. Geographic distribution %

CLASS I SHARES VS. MSCI AC FAR EAST FREE EX JAPAN INDEX3 a) China 27.13 j b) South Korea 18.74 Performance of 100 US dollars invested since inception hi g a c) Taiwan 15.43 700 f d) Hong Kong 13.16 Fund e) Indonesia 5.89 600 e f) Singapore 5.33 Index g) Thailand 3.60 500 h) Malaysia 2.14 400 d i) Philippines 0.34 b j) Cash & equivalents 8.25 300 Total 100.00

Cash value c 200

100 FUND AIM 0 Seeks long-term capital appreciation, measured in US dollars, through Oct 91 Jan 00 Mar 08 investment primarily in the equity securities of companies domiciled in or exercising the predominant part of their economic activity in Asia, Facts and figures Statistics5 Class I Index excluding Japan, thereby taking advantage of the dynamic economic growth capabilities of the region. Launch date October 1991 Alpha 0.45 - Fund manager James Cheng Beta 1.03 - INVESTMENT IMPLEMENTATION Ruchir Sharma R squared 0.96 - Location New York/Singapore Information ratio 0.12 - Top-down and bottom-up disciplines are integrated. Base currency US dollars Tracking error 3.87 - Emphasis is on countries with improving macroeconomic, political TER Class I4 1.10 Standard deviation 20.03 19.17 and social trends, and where valuation and sentiment lag TER Class A4 1.82 fundamental improvement. Total assets $ 628.0 million ISIN Class I LU0034260769 In-depth fundamental company and industry analysis is conducted NAV $ 44.17 ISIN Class A LU0073229253 focusing on companies with strong operating earnings/cash flow ISIN Class B LU0073229410 growth, and undervalued franchises or assets.

Publication date: 16 April 2008. 1 Launch date of Class I shares was October 1991, Class A shares was February 1997 and Class B shares was July 1997. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Equity Asia Pacific ex Japan sector. 2 The MSCI AC FE Free ex Japan Index is a blend of gross and net returns. The index returns prior to 31 December 2000 are gross returns, and net returns thereafter. 3 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 4 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). 5 Based on monthly observations over last 3 years. Please refer to back cover for important information and risk warnings paragraph (1) relating to emerging country securities.

Morgan Stanley SICAV Quarterly Report - March 2008 9 Morgan Stanley SICAV 31 MARCH 2008 Asian Property Fund

1,2 RETURNS IN US DOLLARS VS. GPR GENERAL QUOTED ASIA NET INDEX Portfolio valuations Class I Index Fund (net of fees) % P/CF 9.01 n/a Peer Group P/BV 1.49 n/a Period Class I Class A Class B Index Ranking P/E 12.03 n/a One month (2.24) (2.34) (2.42) (5.23) 3/14 Yield 2.46 0.36 Last three months (14.09) (14.24) (14.46) (15.61) 9/15 Number of holdings 42 87 YTD 2008 (14.09) (14.24) (14.46) (15.61) 9/15 One year (12.27) (12.90) (13.75) (11.88) 8/12 Top 10 holdings % Three years (annualised) 18.76 17.93 16.75 18.12 1/1 Five years (annualised) 26.39 25.49 24.46 27.31 1/1 SUN HUNG KAI PROPERTIES LTD 9.77 Ten years (annualised) 9.01 8.31 - 10.41 1/1 MITSUBISHI ESTATE CO. LTD 9.49 Since inception (annualised) 5.65 - - 5.68 - MITSUI FUDOSAN CO. LTD 9.39 SUMITOMO REALTY AND DEVELOPMEN 5.35 12 months to: HONGKONG LAND HOLDINGS LTD 4.89 March 2008 (12.27) (12.90) (13.75) (11.88) - HANG LUNG PROPERTIES LTD 4.89 March 2007 32.70 31.71 30.45 37.37 - KERRY PROPERTIES LTD 4.83 March 2006 43.86 42.97 41.46 36.15 - UNITED INDUSTRIAL CORP LTD 4.79 March 2005 8.55 7.62 6.92 11.04 - HENDERSON LAND DEVELOPMENT CO. 4.77 March 2004 77.44 76.31 75.52 82.71 - WESTFIELD GROUP 4.72 Total 62.89 Past performance is no indication of current or future performance. These performance data do not take account of commissions and costs incurred on the issue and redemption of units. Geographic distribution %

3 a) Hong Kong 34.77 CLASS I SHARES VS. GPR GENERAL QUOTED ASIA NET INDEX f e b) Japan 33.36 Performance of 100 US dollars invested since inception d c) Singapore 13.28 d) Australia 13.18 250 a Fund e) China 3.83 f) Cash & equivalents 1.59 200 Index c Total 100.00

150

100

Cash value b

50 FUND AIM 0 Seeks long-term capital appreciation, measured in US dollars, through Sep 97 Dec 02 Mar 08 investment in the equity securities of companies in the Asian real estate industry. Facts and figures Statistics5 Class I Index INVESTMENT IMPLEMENTATION Launch date September 1997 Alpha 0.63 - Fund manager Angeline Ho Beta 1.03 - Impact of macroeconomic, cyclical and demographic factors on Location Singapore R squared 0.93 - property sectors and countries is studied. Base currency US dollars Information ratio 0.15 - Asset allocation is established through analysis of supply and TER Class I4 1.02 Tracking error 4.13 - demand for the property sector within each country. TER Class A4 1.74 Standard deviation 15.86 14.85 Bottom-up analysis identifies stocks within top-down framework. Total assets $ 1.7 billion Value screens include price/net asset value and implied property NAV $ 17.87 ISIN Class I LU0078113064 cap rate. Thorough fundamental research with focus on ISIN Class A LU0078112413 management is key. ISIN Class B LU0078112843

Publication date: 16 April 2008. 1 Launch date of Class I & Class A shares was September 1997, Class B shares was July 1999. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, Property Shares Asia Pacific ex Japan and Property Shares & Real Estate Global sectors. 2 The benchmark changed from the GPR Real Estate Securities Index - Far East to the GPR General Quoted Asia Net Index, with effect from 1 March 2005. The GPR General Quoted Asia Net Index has been applied retrospectively. 3 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 4 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). 5 Based on monthly observations over last 3 years. Please refer to back cover for important information and risk warnings paragraphs (1) relating to emerging country securities, and (4) relating to securities of companies engaged in the real estate industry.

10 Morgan Stanley SICAV Quarterly Report - March 2008 Morgan Stanley SICAV 31 MARCH 2008 Emerging Europe, Middle East and North Africa Equity Fund

1 RETURNS IN EURO VS. MSCI EMERGING EUROPE AND MIDDLE EAST INDEX Portfolio valuations Class I Index Fund (net of fees) % P/CF 14.70 8.78 Peer Group P/BV 4.05 2.11 Period Class I Class A Class B Index Ranking P/E 14.27 12.12 One month (9.90) (9.95) (10.01) (7.02) 66/81 Yield 1.56 2.07 Last three months (17.18) (17.30) (17.49) (18.94) 24/80 Number of holdings 56 147 YTD 2008 (17.18) (17.30) (17.49) (18.94) 24/80 One year 1.33 0.75 (0.16) (4.88) 6/77 Top 10 holdings % Three years (annualised) 26.30 25.60 24.58 18.35 13/62 Five years (annualised) 36.50 35.71 34.70 26.10 1/59 GAZPROM OAO, MOSCOW 9.55 Since inception (annualised) 14.96 - - 7.58 - JSC MMC NORILSK NICKEL 7.78 LUKOIL HOLDING 6.99 12 months to: NOVATEK OAO 4.68 March 2008 1.33 0.75 (0.16) (4.88) - VIMPEL COMMUNICATIONS 4.12 March 2007 22.81 22.14 21.12 4.41 - MECHEL 3.16 March 2006 61.90 61.01 59.88 66.90 - ARABTEC HOLDING COMPANY 2.30 March 2005 19.11 18.37 17.78 8.55 - CENTRAL EUROPEAN MEDIA ENT 2.28 March 2004 97.49 96.29 94.69 77.19 - CTC MEDIA INC 2.20 EVRAZ GROUP S.A. 2.12 Past performance is no indication of current or future performance. These performance data do not take account of Total 45.18 commissions and costs incurred on the issue and redemption of units. Geographic distribution % CLASS I SHARES VS. MSCI EMERGING EUROPE AND MIDDLE EAST INDEX2 a) Russia 55.26 Performance of 100 euro invested since inception j k h i b) Poland 11.14 400 g c) Turkey 6.93 Fund f d) Qatar 4.68 350 e e) Oman 4.62 Index f) Egypt 4.15 300 d g) Czech Republic 3.57 250 a h) United Arab Emirates 3.23 c 200 i) Kuwait 1.47 j) Other 0.79 150 b Cash value k) Cash & equivalents 4.17 100 Total 100.00 50 0 FUND AIM Oct 00 Jul 04 Mar 08 Seeks long-term capital appreciation, measured in euro, by investing primarily in equity securities of issuers in Central, Eastern and Facts and figures Statistics4 Class I Index Southern Europe (including the Russian Federation), the Middle East and North Africa. Launch date October 2000 Alpha 7.95 - Fund manager Paul Psaila Beta 0.94 - Eric Carlson R squared 0.88 - INVESTMENT IMPLEMENTATION Location New York Information ratio 1.07 - Bottom-up stock picking focusing on fundamental research is Base currency euro Tracking error 7.40 - combined with macroeconomic analysis which drives a top-down TER Class I3 1.48 Standard deviation 21.00 20.87 sector and country overlay. TER Class A3 2.05 Stock picking process is based on three building blocks: equity Total assets € 420.0 million ISIN Class I LU0118140184 research, quantitative analysis and risk management. NAV € 69.95 ISIN Class A LU0118140002 Companies with the ability to generate strong earnings and free ISIN Class B LU0118140697 cash flow are sought.

Publication date: 16 April 2008. The name of the Morgan Stanley SICAV Emerging Europe and Middle East Equity Fund changed to the Morgan Stanley SICAV Emerging Europe, Middle East and North Africa Equity Fund on 19 December 2005. 1 Launch date of Class I, Class A & Class B shares was October 2000. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Equity Europe Emerging Markets sector. 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 3 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). 4 Based on monthly observations over last 3 years. Please refer to back cover for important information and risk warnings paragraphs (1) relating to emerging country securities.

Morgan Stanley SICAV Quarterly Report - March 2008 11 Morgan Stanley SICAV 31 MARCH 2008 Emerging Markets Equity Fund

1 RETURNS IN US DOLLARS VS. MSCI EMERGING MARKETS FREE (NET) INDEX Portfolio valuations5 Class I Index Fund (net of fees) % Turnover 111% n/a Peer Group Yield 1.79 2.21 Period Class I Class A Class B Index Ranking Number of holdings 164 939 One month (7.20) (7.24) (7.31) (5.29) 127/170 Last three months (15.10) (15.24) (15.43) (10.99) 162/169 Top 10 holdings % YTD 2008 (15.10) (15.24) (15.43) (10.99) 162/169 One year 16.90 16.24 15.10 21.33 102/155 GAZPROM OAO, MOSCOW 4.86 Three years (annualised) 29.80 29.16 27.87 29.23 39/128 PETROLEO BRASILEIRO S.A. 3.49 Five years (annualised) 35.45 34.74 33.46 35.53 32/101 AMERICA MOVIL SAB DE CV 3.35 Ten years (annualised) 12.06 11.44 10.48 12.29 23/65 CHINA MOBILE HONG KONG LTD 3.31 Since inception (annualised) 10.49 - - 10.20 - VALE R DOCE-PF A 2.21 SAMSUNG ELECTRONICS CO. LTD 1.91 12 months to: CHINA CONSTRUCTION BANK 1.70 March 2008 16.90 16.24 15.10 21.33 - MTN GROUP LTD 1.49 March 2007 24.34 23.87 22.44 20.64 - GOME ELECTRICAL APPLIANCES HOLDI 1.47 March 2006 50.46 49.63 48.36 47.44 - VIMPEL COMMUNICATIONS 1.46 March 2005 13.51 12.88 11.94 16.63 - Total 25.25 March 2004 83.63 82.60 80.91 81.67 - Geographic distribution % Past performance is no indication of current or future performance. These performance data do not take account of commissions and costs incurred on the issue and redemption of units. a) China 15.73 k b) Russia 12.08 j a CLASS I SHARES VS. MSCI EMERGING MARKETS FREE (NET) INDEX2 c) Brazil 11.59 d) South Korea 11.37 Performance of 100 US dollars invested since inception i e) India 8.71 b 600 h f) Taiwan 8.61 Fund g) Mexico 7.30 500 g h) South Africa 4.79 i) Poland 3.26 Index c 400 f j) Other 14.42 k) Cash & equivalents 2.14 e d 300 Total 100.00

Cash value 200 FUND AIM 100 Seeks to maximise total return, measured in US dollars, through investment primarily in emerging country equity securities. The Fund 0 will invest in those emerging market countries in which the Company Jul 93 Nov 00 Mar 08 believes that economies are developing strongly and in which the markets are becoming more sophisticated. Facts and figures Statistics4 Class I Index

Launch date July 1993 Alpha 0.57 - INVESTMENT IMPLEMENTATION Fund manager Ruchir Sharma Beta 1.08 - Top-down and bottom-up disciplines are integrated. Location New York R squared 0.98 - Emphasis is on countries with improving macroeconomic, political Base currency US dollars Information ratio 0.15 - and social trends, and where valuation and sentiment lag TER Class I3 1.43 Tracking error 3.84 - fundamental improvement. TER Class A3 2.00 Standard deviation 21.92 19.99 In-depth fundamental company and industry analysis is conducted, Total assets $ 1.2 billion focusing on companies with strong operating earnings/cash flow NAV $ 43.17 ISIN Class I LU0054793475 growth and undervalued franchises or assets. ISIN Class A LU0073229840 ISIN Class B LU0073229923 Publication date: 16 April 2008. 1 Launch date of Class I class shares was July 1993, Class A shares was February 1997 and Class B shares was July 1997. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Equity Global Emerging Markets sector. 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 3 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). 4 Based on monthly observations over last 3 years. 5 Turnover based over the last 12 months. Please refer to back cover for important information and risk warnings paragraphs (1) relating to emerging country securities.

12 Morgan Stanley SICAV Quarterly Report - March 2008 Morgan Stanley SICAV 31 MARCH 2008 European Equity Fund

1 RETURNS IN EURO VS. MSCI EUROPE (NET) INDEX Portfolio valuations Class I Index Fund (net of fees) % P/CF 7.68 8.00 Peer Group P/BV 2.06 1.93 Period Class I Class A Class B Index Ranking P/E 11.46 11.49 One month (4.63) (4.70) (4.75) (3.80) 250/432 Yield 3.52 3.73 Last three months (17.61) (17.73) (17.93) (15.68) 365/425 Number of holdings 51 617 YTD 2008 (17.61) (17.73) (17.93) (15.68) 365/425 One year (15.67) (16.15) (16.99) (15.84) 138/391 Top 10 holdings % Three years (annualised) 4.83 4.14 3.11 7.52 269/332 Five years (annualised) 11.31 10.59 9.49 14.10 194/261 ROYAL DUTCH SHELL PLC 4.16 Ten years (annualised) 2.27 1.64 0.63 2.52 40/95 HSBC HOLDINGS PLC 3.27 Since inception (annualised) 8.58 - - 8.93 - TELEFONICA S.A. 2.94 ROCHE HOLDING AG 2.91 12 months to: NOVARTIS AG 2.77 March 2008 (15.67) (16.15) (16.99) (15.84) - VODAFONE GROUP PLC 2.70 March 2007 12.21 11.45 10.35 13.99 - SUEZ 2.52 March 2006 21.74 20.87 19.69 29.56 - SIEMENS AG 2.47 March 2005 12.41 11.60 10.51 13.82 - BRITISH AMERICAN TOBACCO PLC 2.36 March 2004 31.99 31.24 29.88 36.71 - ALLIANZ AG 2.30 Total 28.40 Past performance is no indication of current or future performance. These performance data do not take account of commissions and costs incurred on the issue and redemption of units. Geographic distribution %

CLASS I SHARES VS. MSCI EUROPE (NET) INDEX2 a) United Kingdom 32.69 k b) Germany 14.23 Performance of 100 euro invested since inception j i c) France 13.43 h d) Switzerland 10.85 600 g a Fund e) Spain 5.12 f 500 f) Italy 4.17 Index e g) Netherlands 3.96 400 h) Greece 3.25 i) Belgium 1.64 d 300 j) Other 2.42 b k) Cash & equivalents 8.23

Cash value 200 c Total 100.00

100 FUND AIM 0 Seeks long-term capital appreciation, measured in euro, through Mar 91 Sep 99 Mar 08 investment in the equity securities of European companies listed on European stock exchanges. Investments will be sought in equity Facts and figures Statistics4 Class I Index securities that the Company believes exhibit attractive characteristics at the time of purchase. Launch date March 1991 Alpha (2.69) - Fund manager Matthew Leeman Beta 1.01 - Riccardo Bindi R squared 0.93 - INVESTMENT IMPLEMENTATION Jonathan Day Information ratio (0.86) - Flexible, style neutral approach targets outperformance throughout Location London Tracking error 3.14 - the market cycle. Base currency euro Standard deviation 12.28 11.76 We are active, fundamental, bottom up stock pickers. Stock TER Class I3 1.05 selection is conducted in the context of key investment themes and TER Class A3 1.62 ISIN Class I LU0034265305 focuses on exploiting pricing anomalies and identifying catalysts Total assets € 190.4 million ISIN Class A LU0073234501 that will unlock value. NAV € 31.31 ISIN Class B LU0073234923 Our conviction driven investment process is centred on understanding the key drivers of a company, identifying companies Publication date: 16 April 2008. with strong cash generation and high returns on investment. The name of the Morgan Stanley SICAV European Value Equity Fund changed to the Morgan Stanley SICAV European Equity Fund on 31 October 2006. 1 Launch date of Class I shares was March 1991, Class A shares was February 1997 and Class B shares was July 1997. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Equity Europe sector. 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 3 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). 4 Based on monthly observations over last 3 years. Please refer to back cover for important information and risk warnings.

Morgan Stanley SICAV Quarterly Report - March 2008 13 Morgan Stanley SICAV 31 MARCH 2008 European Equity Opportunities Fund

1 RETURNS IN EURO VS. MSCI EUROPE (NET) INDEX Portfolio valuations Class I Index Fund (net of fees) % P/CF 8.85 8.00 Peer Group P/BV 2.00 1.93 Period Class I Class A Class B Index Ranking P/E 11.81 11.49 One month (5.79) (5.83) (5.90) (3.80) 355/432 Yield 3.21 3.73 Last three months (19.41) (19.56) (19.75) (15.68) 407/425 Number of holdings 39 617 YTD 2008 (19.41) (19.56) (19.75) (15.68) 407/425 One year (17.05) (17.63) (18.43) (15.84) 205/391 Top 10 holdings % Since inception (annualised) (12.68) - - (10.88) - BG PLC 5.05 12 months to: ROYAL DUTCH SHELL PLC 4.94 March 2008 (17.05) (17.63) (18.43) (15.84) - ROCHE HOLDING AG 4.28 VODAFONE GROUP PLC 3.89 Past performance is no indication of current or future performance. These performance data do not take account of BAYER AG 3.28 commissions and costs incurred on the issue and redemption of units. SUEZ 3.15 ALLIANZ AG 3.00 CLASS I SHARES VS. MSCI EUROPE (NET) INDEX2 BAE SYSTEMS PLC 2.96 Performance of 100 euro invested since inception UNICREDITO ITALIANO SPA, GENOVA 2.90 MUENCHENER RUECKVERSICHERUNGS 2.82 120 Total 36.27 Fund 115 Sector distribution % 110 Index a) United Kingdom 27.93 105 k b) Germany 22.09 i j h c) France 13.93 100 g a d) Switzerland 9.73 95 f Cash value e) Italy 5.73 90 e f) Finland 4.56 g) Norway 4.25 85 h) Greece 2.23 d 80 i) Netherlands 1.29 Dec 06 Aug 07 Mar 08 j) Belgium 0.76 b k) Cash & equivalents 7.50 c Total 100.00 Facts and figures Statistics Class I Index

Launch date December 2006 Fund manager Matthew Leeman ISIN Class I LU0276178596 FUND AIM ISIN Class A LU0276178166 Riccardo Bindi Seeks an attractive long-term rate of return, measured in euro, ISIN Class B LU0276178240 Jonathan Day through investment primarily in a portfolio of equity securities of Location London companies domiciled or exercising the predominant part of their Base currency euro economic activity in European countries. TER Class I3 1.13 TER Class A3 1.85 Total assets € 23.3 million INVESTMENT IMPLEMENTATION NAV € 21.17 Flexible, style neutral approach targets outperformance throughout the market cycle. We are active, fundamental, bottom up stock pickers. Stock selection is conducted in the context of key investment themes and focuses on exploiting pricing anomalies and identifying catalysts that will unlock value. Our conviction driven investment process is centred on understanding the key drivers of a company, identifying companies with strong cash generation and high returns on investment.

Publication date: 16 April 2008. 1 Launch date of Class I & Class A shares was December 2006. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Equity Europe sector. 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 3 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). Please refer to back cover for important information and risk warnings.

14 Morgan Stanley SICAV Quarterly Report - March 2008 Morgan Stanley SICAV 31 MARCH 2008 European Optimised Research Extension Fund

FUND AIM Top 5 long holdings (alphabetical order)

Seeks to outperform the benchmark through exposure to the equity securities of European Galp Energia SGPS S/A companies, either directly or via the use of financial derivative instruments. Julius Baer Holding AG Marr S.p.A. INVESTMENT IMPLEMENTATION Reckitt Benckiser Group PLC Syngenta AG Combines fundamental and quantitative investment techniques in an active extension framework, leveraging expertise across Morgan Stanley. Disciplined, actively managed and systematic investment approach. Top 5 short holdings (alphabetical order) Quantitative models used to construct an optimised, active extension portfolio ARM Holdings PLC Clariant AG Facts and figures Klepierre S.A. Solvay S.A. Launch date February 2008 ISIN Class I LU0341468964 Unibail-Rodamco Fund manager Justin Simpson ISIN Class A LU0341468535 Neil Chakraborty ISIN Class B LU0341468881 Frederic Dubinski Publication date: 16 April 2008. Location London 1 Total expenses charged to share class open as at 31 December 2007, Base currency euro calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within TER Class I1 n/a this period). TER Class A1 n/a Please refer to back cover for important information and risk warnings. Benchmark MSCI Europe (Net) Index Total assets € 13.1 million NAV € 94.84 Number of holdings 75

GEOGRAPHIC DISTRIBUTION

% -5 0 5 10 15 20 25 30 Belgium (3.47) France 24.63 Germany 12.88 Italy 5.86 Netherlands (1.75) Norway 3.74 Portugal 2.13 Spain 6.04 Sweden 5.00 Switzerland 15.36 United Kingdom 29.59 Total 100.00

Morgan Stanley SICAV Quarterly Report - March 2008 15 Morgan Stanley SICAV 31 MARCH 2008 European Property Fund

1,2 RETURNS IN EURO VS. GPR GENERAL QUOTED EUROPE NET INDEX Portfolio valuations Class I Index Fund (net of fees) % P/CF 7.98 n/a Peer Group P/BV 0.81 n/a Period Class I Class A Class B Index Ranking P/E 18.39 n/a One month (4.16) (4.22) (4.31) (2.43) 16/28 Yield 3.35 0.23 Last three months (1.81) (2.00) (2.28) (2.95) 11/28 Number of holdings 41 191 YTD 2008 (1.81) (2.00) (2.28) (2.95) 11/28 One year (35.77) (36.25) (36.91) (32.18) 20/27 Top 10 holdings % Three years (annualised) 6.72 5.95 4.88 7.90 8/15 Five years (annualised) 17.63 16.82 15.65 18.39 7/12 UNIBAIL CO. S.A. 9.76 Ten years (annualised) 8.41 7.72 - 9.29 3/4 LAND SECURITES PLC 7.71 Since inception (annualised) 9.63 - - 10.44 - BRITISH LAND CO. LTD 7.08 GECINA 4.64 12 months to: PROLOGIS EUROPEAN PROPERTIES 4.59 March 2008 (35.77) (36.25) (36.91) (32.18) - HUFVUDSTADEN AB 4.42 March 2007 30.39 29.47 28.21 28.40 - HAMMERSON PLC 4.25 March 2006 45.13 44.11 42.64 44.27 - SERCO GROUP PLC 3.55 March 2005 22.36 21.48 20.30 26.43 - COMPAGNIE FONCIERE KLEPIERRE 3.20 March 2004 51.41 50.56 49.06 46.45 - BENI STABILI SPA 2.90 Total 52.10 Past performance is no indication of current or future performance. These performance data do not take account of commissions and costs incurred on the issue and redemption of units. Geographic distribution %

CLASS I SHARES VS. GPR GENERAL QUOTED EUROPE NET INDEX3 a) United Kingdom 43.78 h i j b) France 23.13 Performance of 100 euro invested since inception g f c) Netherlands 9.08 450 e d) Sweden 5.24 Fund e) Austria 4.99 400 d a f) Italy 3.71 350 Index g) Germany 3.51 c h) Finland 3.35 300 i) Switzerland 0.69 250 j) Cash & equivalents 2.53 Total 100.00 200 b Cash value 150 100 FUND AIM 50 Seeks long-term capital appreciation, measured in euro, through Sep 97 Dec 02 Mar 08 investment in the equity securities of companies in the European real estate industry. Facts and figures Statistics5 Class I Index INVESTMENT IMPLEMENTATION Launch date September 1997 Alpha (1.19) - Fund manager Sven van Kemenade Beta 1.12 - Impact of macroeconomic, cyclical and demographic factors on Michiel te Paske R squared 0.96 - property sectors and countries studied. Location Amsterdam Information ratio (0.30) - Allocation of assets established through analysis of supply and Base currency euro Tracking error 4.00 - demand for the property sector within each European country. TER Class I4 1.05 Standard deviation 17.03 14.91 Bottom-up analysis identifies stocks within top-down framework. TER Class A4 1.77 Value screens include price/net asset value and implied property Total assets € 300.2 million ISIN Class I LU0078115192 cap rate. Thorough fundamental research with focus on NAV € 27.20 ISIN Class A LU0078113650 management is key. ISIN Class B LU0078114898 Publication date: 16 April 2008. 1 Launch date of Class I & Class A class shares was September 1997, Class B shares was July 1998. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Property Shares Europe. 2 The benchmark changed from the GPR Real Estate Securities Index - Europe to the GPR General Quoted Europe Net Index, with effect from 1 March 2005. The GPR General Quoted Europe Net Index has been applied retrospectively. 3 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 4 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). 5 Based on monthly observations over last 3 years. Please refer to back cover for important information and risk warnings paragraph (4) relating to securities of companies engaged in the real estate industry.

16 Morgan Stanley SICAV Quarterly Report - March 2008 Morgan Stanley SICAV 31 MARCH 2008 European Small Cap Value Fund

1 RETURNS IN EURO VS. MSCI EUROPEAN SMALL CAP INDEX Portfolio valuations Class I Index Fund (net of fees) % P/CF 8.55 9.27 Peer Group P/BV 2.11 1.91 Period Class I Class A Class B Index Ranking P/E 15.55 15.18 One month (3.49) (3.55) (3.63) (3.22) 44/80 Yield 2.94 2.54 Last three months (13.06) (13.23) (13.44) (12.54) 32/80 Number of holdings 84 1180 YTD 2008 (13.06) (13.23) (13.44) (12.54) 32/80 One year (21.81) (22.38) (23.15) (24.06) 41/76 Top 10 holdings % Three years (annualised) 8.27 7.48 6.42 9.54 49/69 Five years (annualised) 18.25 17.44 16.27 21.69 46/57 PREMIER FOODS PLC 3.15 Since inception (annualised) 8.98 - - 9.82 - DAVIDE CAMPARI 2.88 BRITVIC 2.53 12 months to: KERRY GROUP PLC 2.51 March 2008 (21.81) (22.38) (23.15) (24.06) - SAAB AB 2.29 March 2007 19.91 19.04 17.87 19.50 - CVS GROUP PLC 2.26 March 2006 35.37 34.39 33.04 44.85 - IPSEN PROMESSES S.A. 2.23 March 2005 24.81 23.94 22.75 21.45 - UNIBET GROUP PLC 2.12 March 2004 45.93 45.13 43.63 67.14 - OMEGA PHARMA 1.95 WINCANTON 1.93 Past performance is no indication of current or future performance. These performance data do not take account of Total 23.85 commissions and costs incurred on the issue and redemption of units. Geographic distribution % CLASS I SHARES VS. MSCI EUROPEAN SMALL CAP INDEX2 a) United Kingdom 24.97 Performance of 100 euro invested since inception k j b) France 11.75 300 a c) Sweden 10.27 Fund i d) Finland 8.79 e) Norway 7.07 250 Index h f) Netherlands 6.45 g) Ireland 5.87 200 g h) Switzerland 5.45 b i) Italy 5.18 f j) Other 13.24 150 Cash value e c k) Cash & equivalents 0.97 d Total 100.00 100

50 FUND AIM Nov 01 Jan 05 Mar 08 Seeks to provide an attractive rate of return, measured in euro, by investing primarily in the common stocks of small to medium sized Facts and figures Statistics4 Class I Index European corporations with a market capitalisation of up to US $3 billion (or equivalent) that the Company believes to be undervalued Alpha (1.27) - Launch date November 2001 relative to the stock market in general at the time of purchase. Fund manager Nathalie Degans Beta 0.96 - Alistair Corden-Lloyd R squared 0.93 - Location London Information ratio (0.30) - INVESTMENT IMPLEMENTATION Base currency euro Tracking error 4.29 - Value-orientated, bottom-up approach to stock selection focuses on TER Class I3 1.45 Standard deviation 15.95 15.94 businesses with excellent franchises trading at a substantial TER Class A3 2.17 discount to their long-term 'fair' value. Total assets € 41.0 million ISIN Class I LU0137764584 In-depth fundamental research and company visits are integral to NAV € 43.99 ISIN Class A LU0137765714 the process. Target price for each stock and catalyst for ISIN Class B LU0137767173 reappraisal of the current stock price are identified. Integrated risk management approach is designed to limit company-specific and general portfolio risks.

Publication date: 16 April 2008. 1 Launch date of Class I, Class A & Class B shares was November 2001. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Smaller Companies Europe sector. 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 3 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). 4 Based on monthly observations over last 3 years. Please refer to back cover for important information and risk warnings paragraph (3) relating to securities of small capitalisation companies.

Morgan Stanley SICAV Quarterly Report - March 2008 17 Morgan Stanley SICAV 31 MARCH 2008 European Systematic Equity Fund

1 RETURNS IN EURO VS. MSCI EUROPE (NET) INDEX Portfolio valuations Class I Index Fund (net of fees) % P/CF 5.99 8.00 Peer Group P/BV 6.49 1.93 Period Class I Class A Class B Index Ranking P/E 9.65 11.49 One month (4.54) (4.59) - (3.80) 233/432 Yield 4.06 3.73 Last three months (16.56) (16.67) - (15.68) 287/425 Number of holdings 134 617 YTD 2008 (16.56) (16.67) - (15.68) 287/425 One year (18.35) (18.75) - (15.84) 248/391 Top 10 holdings % Since inception (annualised) (0.62) - - 1.57 - ROYAL DUTCH SHELL PLC 3.44 12 months to: BP PLC 2.73 March 2008 (18.35) (18.75) - (15.84) - NESTLE S.A. 2.37 March 2007 11.83 11.33 - 13.99 - BANCO SANTANDER CENTRAL HISPAN 2.24 GLAXOSMITHKLINE PLC 2.10 Past performance is no indication of current or future performance. These performance data do not take account of TOTAL S.A. 2.10 commissions and costs incurred on the issue and redemption of units. VODAFONE GROUP PLC 2.07 E.ON AG 2.06 CLASS I SHARES VS. MSCI EUROPE (NET) INDEX2 HSBC HOLDINGS PLC 1.80 Performance of 100 euro invested since inception NOKIA OY 1.78 Total 22.69 140 Fund Geographic distribution % 130 Index a) United Kingdom 31.01 j b) France 17.18 120 i c) Germany 16.67 h a d) Switzerland 8.92 g e) Spain 5.07 110 f

Cash value f) Sweden 4.67 e g) Italy 3.63 100 h) Finland 3.44 d i) Netherlands 3.29 90 j) Other 9.62 b Dec 05 Feb 07 Mar 08 Cash & equivalents (3.51) c Total 100.00

Facts and figures

Launch date December 2005 ISIN Class I LU0225742997 FUND AIM ISIN Class A LU0225742567 Fund manager Sandip Bhagat Seeks long-term capital appreciation, measured in euro, through Feng Chang investment primarily in the equity securities of companies domiciled or Location New York exercising the predominant part of their economic activity in Base currency euro developed European countries. The investment process is designed to 3 TER Class I 0.75 provide broad exposure to the European equity asset class through a 3 TER Class A 1.20 diversified portfolio structure. Total assets € 15.5 million NAV € 25.00 INVESTMENT IMPLEMENTATION Bottom-up, systematic approach to stock selection which aims to capture the consistency and reliability of a core approach while exploiting market anomalies and pricing inefficiencies. Stock picking process based on proprietary multi-factor model which ranks stocks and industries within each sector by the most effective combination of valuation-related, earnings-related and price-related factors. Integrated risk management approach focuses more on the composition, rather than just the magnitude, of active risk.

Publication date: 16 April 2008. 1 Launch date of Class I & Class A shares was December 2005. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Equity Europe sector. 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 3 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). Please refer to back cover for important information and risk warnings.

18 Morgan Stanley SICAV Quarterly Report - March 2008 Morgan Stanley SICAV 31 MARCH 2008 Eurozone Equity Opportunities Fund

1,2 RETURNS IN EURO VS. MSCI EMU (NET) INDEX Portfolio valuations Class I Index Fund (net of fees) % P/CF 7.45 7.16 Peer Group P/BV 1.95 1.76 Period Class I Class A Class B Index Ranking P/E 11.13 11.22 One month (3.66) (3.71) (3.74) (2.66) 75/128 Yield 3.47 3.83 Last three months (19.61) (19.79) (20.00) (16.20) 121/128 Number of holdings 36 332 YTD 2008 (19.61) (19.79) (20.00) (16.20) 121/128 One year (17.82) (18.45) (19.28) (14.01) 102/123 Top 10 holdings % Three years (annualised) 5.65 5.00 3.95 8.50 84/99 Five years (annualised) 10.20 9.55 8.45 14.72 76/79 TELEFONICA S.A. 4.89 Since inception (annualised) (2.95) - - (0.74) - BAYER AG 4.89 ENI S.P.A. 4.77 12 months to: SUEZ 4.20 March 2008 (17.82) (18.45) (19.28) (14.01) - BNP PARIBAS 4.17 March 2007 12.46 11.84 10.81 14.63 - SIEMENS AG 4.07 March 2006 27.60 26.93 25.59 29.56 - SANOFI AVENTIS 4.06 March 2005 7.29 6.67 5.60 13.82 - ALLIANZ AG 3.92 March 2004 28.49 27.79 26.46 36.71 - BANCO BILBAO VIZCAYA ARGENTARIA 3.65 UNICREDITO ITALIANO SPA, GENOVA 3.44 Past performance is no indication of current or future performance. These performance data do not take account of Total 42.06 commissions and costs incurred on the issue and redemption of units. Geographic distribution % CLASS I SHARES VS. MSCI EMU (NET) INDEX3 a) Germany 31.52 Performance of 100 euro invested since inception h i jk g b) France 25.88 130 f c) Italy 11.58 a d) Spain 8.55 120 Fund e e) Netherlands 7.86 110 Index f) Finland 4.80 100 d g) Greece 4.48 h) Austria 1.87 90 i) Ireland 1.41 80 c j) Belgium 0.88

Cash value 70 k) Cash & equivalents 1.16 b Total 100.00 60 50 40 FUND AIM Apr 00 Apr 04 Mar 08 Seeks an attractive long term rate of return, measured in euro, through investment primarily in a concentrated portfolio of equity Facts and figures Statistics5 Class I Index securities of companies domiciled or exercising the predominant part of their economic activity in the Eurozone. Investments will be sought Alpha (2.85) - Launch date April 2000 in equity securities that the Company believes to have the highest Beta 1.09 - Fund manager Matthew Leeman potential for long term capital appreciation based primarily on R squared 0.96 - Riccardo Bindi fundamental market factors and stock specific research. Jonathan Day Information ratio (1.02) - Location London Tracking error 2.79 - Base currency euro Standard deviation 13.32 11.99 INVESTMENT IMPLEMENTATION TER Class I4 1.09 Flexible, style neutral approach targets outperformance throughout TER Class A4 1.75 ISIN Class I LU0109967595 the market cycle. Total assets € 69.1 million ISIN Class A LU0109967165 We are active, fundamental, bottom up stock pickers. Stock NAV € 8.16 ISIN Class B LU0109967249 selection is conducted in the context of key investment themes and focuses on exploiting pricing anomalies and identifying catalysts Publication date: 16 April 2008. that will unlock value. The name of the Morgan Stanley SICAV European Equity Euro Hedged Fund changed to the Morgan Stanley SICAV Eurozone Our conviction driven investment process is centred on Equity Opportunities Fund on 31 May 2007. understanding the key drivers of a company, identifying companies 1 Launch date of Class I, Class A & Class B shares was April 2000. Morningstar's peer group rankings refer to Class A and are with strong cash generation and high returns on investment. taken from the Offshore and International Funds universe, in the Equity Euroland sector. 2 The benchmark changed from the MSCI Europe (Net) Euro Hedged Index to the MSCI EMU (Net) Index on 31 May 2007. Between 1 November 2006 and 31 May 2007, the fund's benchmark was the MSCI Europe (Net) Euro Hedged Index, and the index performance disclosed for this period relates to this index. This is a custom index calculated by MSCI for, and as requested by, Morgan Stanley Investment Management Limited. Prior to this, the benchmark was the MSCI Europe (Net) Index. 3 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 4 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). 5 Based on monthly observations over last 3 years. Please refer to back cover for important information and risk warnings.

Morgan Stanley SICAV Quarterly Report - March 2008 19 Morgan Stanley SICAV 31 MARCH 2008 Global Brands Fund

1 RETURNS IN US DOLLARS VS. MSCI WORLD (NET) INDEX Portfolio valuations Class I Index Fund (net of fees) % P/CF 12.26 9.20 Peer Group P/BV 4.22 2.11 Period Class I Class A Class B Index Ranking P/E 15.69 14.16 One month (0.81) (0.89) (0.96) (0.96) 182/695 Yield 2.97 2.74 Last three months (7.11) (7.28) (7.51) (9.06) 195/693 Number of holdings 33 1941 YTD 2008 (7.11) (7.28) (7.51) (9.06) 195/693 One year (3.30) (4.01) (4.95) (3.25) 388/653 Top 10 holdings % Three years (annualised) 10.19 9.40 8.31 9.64 310/528 Five years (annualised) 16.57 15.75 14.61 15.96 232/465 BRITISH AMERICAN TOBACCO PLC 9.19 Since inception (annualised) 12.17 - - 3.23 - IMPERIAL TOBACCO GROUP PLC 5.66 RECKITT BENCKISER PLC 4.85 12 months to: CADBURY SCHWEPPES PLC 4.35 March 2008 (3.30) (4.01) (4.95) (3.25) - SWEDISH MATCH AB 4.34 March 2007 20.14 19.30 18.08 15.44 - REED ELSEVIER NV 4.22 March 2006 15.18 14.34 13.21 18.02 - UNILEVER PLC 4.19 March 2005 14.14 13.33 12.21 10.56 - WOLTERS KLUWER NV 4.09 March 2004 40.92 40.05 38.73 43.87 - KONE OY 3.92 PHILIP MORRIS INC 3.43 Past performance is no indication of current or future performance. These performance data do not take account of Total 48.24 commissions and costs incurred on the issue and redemption of units. Geographic distribution % CLASS I SHARES VS. MSCI WORLD (NET) INDEX2 a) United Kingdom 36.35 Performance of 100 US dollars invested since inception j h i b) United States 27.61 g 300 c) Netherlands 8.31 f Fund d) Switzerland 5.93 a e e) France 4.72 250 Index f) Sweden 4.34 d g) Finland 3.92 200 h) Japan 2.52 c i) Ireland 2.02 j) Cash & equivalents 4.29 150

Cash value Total 100.00 b 100

50 FUND AIM Oct 00 Jul 04 Mar 08 Seeks an attractive long-term rate of return, measured in US dollars, through investment principally in equity securities of companies in the Facts and figures Statistics4 Class I Index world’s developed countries.

Launch date October 2000 Alpha 0.55 - INVESTMENT IMPLEMENTATION Fund manager Hassan Elmasry Beta 0.68 - Michael Allison R squared 0.65 - Disciplined, value-oriented, bottom-up approach to stock selection Paras Dodhia Information ratio 0.10 - focusing on absolute return produces a highly concentrated John Kelly-Jones Tracking error 5.51 - portfolio of the world's great franchise businesses. Jayson Vowles Standard deviation 7.88 9.30 In-depth fundamental research aims to identify companies with Location London difficult to replicate intangible assets, high free cash flow, repeat Base currency US dollars ISIN Class I LU0119620176 businesses, sustainable high ROCE and strong management. TER Class I3 0.99 ISIN Class A LU0119620416 Risk management helps to reduce absolute risk by focusing on TER Class A3 1.71 ISIN Class B LU0119620507 business and valuation risks. Total assets $ 2.5 billion NAV $ 58.54 Publication date: 16 April 2008. 1 Launch date of Class I, Class A & Class B shares was October 2000. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Equity Global sector. 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 3 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). 4 Based on monthly observations over last 3 years. Please refer to back cover for important information and risk warnings.

20 Morgan Stanley SICAV Quarterly Report - March 2008 Morgan Stanley SICAV 31 MARCH 2008 Global Equity Growth Fund

1 RETURNS IN US DOLLARS VS. MSCI WORLD (NET) INDEX Portfolio valuations Class I Index Fund (net of fees) % P/CF 9.64 9.20 Peer Group P/BV 2.60 2.11 Period Class I Class A Class B Index Ranking P/E 15.18 14.16 One month (1.15) (1.23) (1.31) (0.96) 218/695 Yield 2.23 2.74 Last three months (10.45) (10.61) (10.82) (9.06) 479/693 Number of holdings 87 1941 YTD 2008 (10.45) (10.61) (10.82) (9.06) 479/693 One year 2.65 1.98 0.96 (3.25) 188/653 Top 10 holdings % Since inception (annualised) 11.92 - - 6.79 - MONSANTO CO. 3.43 12 months to: ULTRA PETROLEUM CORP 2.54 March 2008 2.65 1.98 0.96 (3.25) - RESEARCH IN MOTION LTD USD COM 2.49 AMAZON.COM INC 2.25 Past performance is no indication of current or future performance. These performance data do not take account of GOOGLE INC CL A 2.24 commissions and costs incurred on the issue and redemption of units. AMERICA MOVIL SAB DE CV 1.85 WYNN RESORTS LTD 1.82 CLASS I SHARES VS. MSCI WORLD (NET) INDEX2 BROOKFIELD ASSET MANAGEMENT 1.77 Performance of 100 US dollars invested since inception EBAY INC 1.77 E.ON AG 1.27 150 Total 21.43 Fund 140 Sector distribution % Index 130 a) Financials 17.75 k b) Consumer Discretionary 13.07 j a 120 i c) Information Technology 12.86 d) Industrials 12.11 h Cash value 110 e) Materials 9.24 f) Energy 7.16 g b 100 g) Health Care 7.07 h) Consumer Staples 6.06 90 f i) Telecommunication Services 4.49 Jul 06 May 07 Mar 08 c e j) Utilities 3.01 d k) Cash & equivalents 7.17 Facts and figures Total 100.00 Launch date July 2006 ISIN Class I LU0257819531 Fund manager US region: ISIN Class A LU0257819291 Dennis Lynch ISIN Class B LU0257819457 FUND AIM David Cohen Seeks long term capital appreciation, measured in US Dollars, through Sam Chainani investment principally in growth orientated equity securities of medium Alexander Norton to large capitalisation companies listed on the world’s stock Jason Yeung exchanges.

Non-US region: Hans van den Berg INVESTMENT IMPLEMENTATION David Sugimoto We seek to generate alpha through our focus on stock picking. Location New York/Philadelphia We believe the market can, in the short term, under-appreciate the Base currency US dollars long term value creation of growth companies with unique business TER Class I3 0.95 models and sustainable competitive advantages. TER Class A3 1.60 High quality companies with strong competitive positions, Total assets $ 28.2 million favourable ROIC and the potential for strong free cash flow NAV $ 30.16 generation present the best opportunities for solid long term growth.

Publication date: 16 April 2008. 1 Launch date of Class I, Class A & Class B shares was July 2006. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Equity Global sector. 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 3 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). Please refer to back cover for important information and risk warnings.

Morgan Stanley SICAV Quarterly Report - March 2008 21 Morgan Stanley SICAV 31 MARCH 2008 Global Property Fund

RETURNS IN US DOLLARS VS. FTSE EPRA/ Portfolio valuations Class I Index NAREIT GLOBAL REAL ESTATE INDEX (NET, EQUAL WEIGHTED)1 Fund (net of fees) % P/CF 13.77 n/a P/BV 1.32 n/a Peer Group P/E 17.90 n/a Period Class I Class A Class B Index Ranking Yield 3.13 5.10 One month 0.73 0.65 0.53 0.51 19/50 Number of holdings 140 189 Last three months (2.17) (2.31) (2.59) (3.51) 19/50 YTD 2008 (2.17) (2.31) (2.59) (3.51) 19/50 Top 10 holdings % One year (18.47) (19.04) (19.85) (17.85) 20/41 Since inception (annualised) (4.30) - - (3.33) - MITSUBISHI ESTATE CO. LTD 4.99 UNIBAIL CO. S.A. 4.44 12 months to: SUN HUNG KAI PROPERTIES LTD 4.38 March 2008 (18.47) (19.04) (19.85) (17.85) - WESTFIELD GROUP 4.16 MITSUI FUDOSAN CO. LTD 3.57 Past performance is no indication of current or future performance. These performance data do not take account of LAND SECURITES PLC 3.49 commissions and costs incurred on the issue and redemption of units. SIMON PROPERTY GROUP LP 2.75 BRITISH LAND CO. LTD 2.73 CLASS I SHARES VS. FTSE EPRA/ SUMITOMO REALTY AND DEVELOPMEN 2.52 NAREIT GLOBAL REAL ESTATE INDEX (NET, EQUAL WEIGHTED)2 EQUITY RESIDENTIAL PROPERTIES 2.01 Total 35.04 Performance of 100 US dollars invested since inception

125 Geographic distribution % Fund 120 a) United States 29.02 k j b) United Kingdom 16.91 115 Index i h c) Japan 13.72 g 110 a d) Hong Kong 11.35 f e) Australia 6.88 105 f) France 6.66 100 e g) Singapore 3.31 Cash value h) China 3.01 95 i) Netherlands 2.31 90 d j) Other 5.79 b k) Cash & equivalents 1.04 85 c Total 100.00 Oct 06 Jul 07 Mar 08

Facts and figures Statistics Class I Index FUND AIM Launch date October 2006 Alpha - - Seeks to provide current income and long term capital appreciation, Fund manager Ted Bigman Beta - - measured in US Dollars, primarily through investment in the equity Sven van Kemenade R squared - - securities of companies in the real estate industry located throughout Michiel te Paske Information ratio - - the world’s developed countries and emerging markets. Angeline Ho Tracking error - - Location New York/Amsterdam/ Standard deviation - - INVESTMENT IMPLEMENTATION Singapore Base currency US dollars ISIN Class I LU0266114668 Emphasis is on a bottom up stock selection process with a top TER Class I3 1.20 ISIN Class A LU0266114312 down country allocation overlay. TER Class A3 1.90 ISIN Class B LU0266114585 Key regional criteria include demographic and macroeconomic Total assets $ 144.8 million considerations, such as population, employment, household NAV $ 23.49 formation and income. The bottom up security selection process employs a value driven approach, which focuses on underlying asset values, values per square foot and property yields.

Publication date: 16 April 2008. 1 Launch date of Class I, Class A and Class B shares was October 2006. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Property Shares Global sector. 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 3 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). Please refer to back cover for important information and risk warnings paragraph (4) relating to securities of companies engaged in the real estate industry.

22 Morgan Stanley SICAV Quarterly Report - March 2008 Morgan Stanley SICAV 31 MARCH 2008 Global Small Cap Value Fund

1 RETURNS IN US DOLLARS VS. MSCI WORLD SMALL CAP INDEX Portfolio valuations Class I Index Fund (net of fees) % P/CF 8.84 9.95 Peer Group P/BV 1.69 1.69 Period Class I Class A Class B Index Ranking P/E 15.63 20.81 One month (0.11) (0.15) (0.25) (1.01) 7/25 Yield 2.58 2.05 Last three months (6.40) (6.55) (6.78) (8.13) 8/25 Number of holdings 179 4515 YTD 2008 (6.40) (6.55) (6.78) (8.13) 8/25 One year (12.63) (13.25) (14.11) (11.93) 19/25 Top 10 holdings % Three years (annualised) 7.31 6.55 5.50 8.04 16/21 Five years (annualised) 18.68 17.88 16.74 20.57 14/18 MAXIMUS INC 2.03 Ten years (annualised) 8.58 7.89 6.96 8.09 4/8 DRS TECHNOLOGIES INC 1.66 Since inception (annualised) 8.58 - - 8.09 - PREMIER FOODS PLC 1.61 DAVIDE CAMPARI 1.46 12 months to: BELDEN INC 1.31 March 2008 (12.63) (13.25) (14.11) (11.93) - KERRY GROUP PLC 1.26 March 2007 17.07 16.25 15.11 10.33 - DOUTOR NICHIRES HOLDINGS CO. 1.26 March 2006 20.82 19.96 18.76 29.81 - BRITVIC 1.16 March 2005 15.31 14.52 13.33 13.13 - SAAB AB 1.11 March 2004 65.21 64.25 62.93 78.58 - TSUMURA AND CO. 1.10 Total 13.96 Past performance is no indication of current or future performance. These performance data do not take account of commissions and costs incurred on the issue and redemption of units. Geographic distribution %

CLASS I SHARES VS. MSCI WORLD SMALL CAP INDEX2,3 a) United States 45.19 k b) Japan 13.21 Performance of 100 US dollars invested since inception j c) United Kingdom 7.45 300 i d) France 3.64 Fund h e) Italy 3.36 g a f) Sweden 3.04 250 Index f g) Ireland 2.78 e h) Norway 2.76 200 d i) Australia 2.71 j) Other 12.37 c k) Cash & equivalents 3.49 150

Cash value b Total 100.00

100 FUND AIM 50 Seeks to provide an attractive rate of return, measured in US dollars, Mar 98 Mar 03 Mar 08 by investing in the common stocks of small to medium sized corporations that the Company believes to be undervalued relative to Facts and figures Statistics6 Class I Index the stock market in general at the time of purchase.

Launch date4 March 1998 Alpha (0.73) - Fund manager Margaret Naylor Beta 0.83 - INVESTMENT IMPLEMENTATION Location London/New York R squared 0.86 - Value-orientated, bottom-up approach to stock selection focuses on Base currency US dollars Information ratio (0.15) - businesses with excellent franchises trading at a substantial TER Class I5 1.37 Tracking error 4.76 - discount to their long-term 'fair' value. TER Class A5 2.09 Standard deviation 11.37 12.62 Preliminary valuation screens are primarily based on price to cash Total assets $ 126.6 million flow, price to free cash flow and price to book value. NAV $ 36.68 ISIN Class I LU0054796148 In-depth fundamental research and company visits analyse financial ISIN Class A LU0073235227 structure, management, business franchise, products and strategic ISIN Class B LU0073235573 value of assets.

Publication date: 16 April 2008. 1 Launch date of Class I, Class A & Class B shares was March 1998. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Equity World Mid and Small sector. 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 3 Price Index only, dividends are not reinvested. 4 This Fund was restructured in March 1998. Original inception: December 1993. 5 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). 6 Based on monthly observations over last 3 years. Please refer to back cover for important information and risk warnings paragraph (3) relating to securities of small capitalisation companies.

Morgan Stanley SICAV Quarterly Report - March 2008 23 Morgan Stanley SICAV 31 MARCH 2008 Global Systematic Equity Fund

1 RETURNS IN US DOLLARS VS. MSCI WORLD (NET) INDEX Portfolio valuations Class I Index Fund (net of fees) % P/CF 8.01 9.20 Peer Group P/BV 1.71 2.11 Period Class I Class A Class B Index Ranking P/E 14.17 14.16 One month (2.80) (2.83) (2.90) (0.96) 407/695 Yield 2.94 2.74 Last three months (11.38) (11.48) (11.70) (9.06) 559/693 Number of holdings 238 1941 YTD 2008 (11.38) (11.48) (11.70) (9.06) 559/693 One year (8.82) (9.23) (10.13) (3.25) 584/653 Top 10 holdings % Three years (annualised) 6.89 6.41 5.36 9.64 462/528 Five years (annualised) 13.10 12.56 11.42 15.96 397/465 EXXON MOBIL CORP 2.57 Since inception (annualised) 1.05 - - 2.59 - ROYAL DUTCH SHELL PLC 1.71 CHEVRON CORP 1.69 12 months to: TOTAL S.A. 1.50 March 2008 (8.82) (9.23) (10.13) (3.25) - HEWLETT-PACKARD CO. 1.29 March 2007 15.47 14.94 13.81 15.44 - AT&T CORP 1.26 March 2006 16.01 15.49 14.34 18.02 - PHILIP MORRIS INC 1.24 March 2005 5.77 5.26 4.14 10.56 - ENI S.P.A. 1.20 March 2004 43.24 42.44 40.97 43.87 - BANK OF AMERICA CORP 1.17 ABBOTT LABORATORIES 1.16 Past performance is no indication of current or future performance. These performance data do not take account of Total 14.79 commissions and costs incurred on the issue and redemption of units. Geographic distribution % CLASS I SHARES VS. MSCI WORLD (NET) INDEX2 a) United States 45.51 Performance of 100 US dollars invested since inception k j b) United Kingdom 11.91 150 i c) Japan 9.42 h d) France 6.37 140 Fund g f e) Germany 5.17 130 Index a f) Canada 3.75 e 120 g) Switzerland 2.25 110 h) Italy 2.05 d 100 i) Australia 1.86 j) Other 9.34 90 c

Cash value k) Cash & equivalents 2.39 80 b Total 100.00 70 60 50 FUND AIM Jul 00 May 04 Mar 08 Seeks long-term capital appreciation, measured in US dollars, through investment primarily in the equity securities of medium to large sized Facts and figures Statistics4 Class I Index companies listed on the world’s stock exchanges.

Launch date July 2000 Alpha (2.75) - Fund manager Sandip Bhagat Beta 1.05 - INVESTMENT IMPLEMENTATION Feng Chang R squared 0.91 - Bottom-up, systematic approach to stock selection which aims to Location New York Information ratio (0.88) - capture the consistency and reliability of a core approach while Base currency US dollars Tracking error 3.14 - exploiting market anomalies and pricing inefficiencies. TER Class I3 0.75 Standard deviation 10.23 9.30 Stock picking process based on proprietary multi-factor model TER Class A3 1.20 which ranks stocks and industries within each sector by the most Total assets $ 18.4 million ISIN Class I LU0113397516 effective combination of valuation-related, earnings-related and NAV $ 27.09 ISIN Class A LU0113397276 price-related factors. ISIN Class B LU0113397789 Integrated risk management approach focuses more on the composition, rather than just the magnitude, of active risk.

Publication date: 16 April 2008. The name of the Morgan Stanley SICAV World Equity Fund changed to the Morgan Stanley SICAV Global Systematic Equity Fund on 31 October 2006. 1 Launch date of Class I, Class A & Class B shares was July 2000. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Equity Global sector. 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 3 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). 4 Based on monthly observations over last 3 years. Please refer to back cover for important information and risk warnings.

24 Morgan Stanley SICAV Quarterly Report - March 2008 Morgan Stanley SICAV 31 MARCH 2008 Global Value Equity Fund

1 RETURNS IN US DOLLARS VS. MSCI WORLD (NET) INDEX Portfolio valuations Class I Index Fund (net of fees) % P/CF 7.53 9.20 Peer Group P/BV 1.71 2.11 Period Class I Class A Class B Index Ranking P/E 12.86 14.16 One month (2.33) (2.39) (2.47) (0.96) 341/695 Yield 3.68 2.74 Last three months (10.70) (10.84) (11.08) (9.06) 505/693 Number of holdings 79 1941 YTD 2008 (10.70) (10.84) (11.08) (9.06) 505/693 One year (6.70) (7.37) (8.31) (3.25) 525/653 Top 10 holdings % Three years (annualised) 7.24 6.48 5.41 9.64 457/528 Five years (annualised) 15.35 14.55 13.41 15.96 303/465 IBM CORP 2.75 Ten years (annualised) 4.60 3.94 2.90 4.58 90/177 BNP PARIBAS 2.70 Since inception (annualised) 9.02 - - 7.08 - CADBURY SCHWEPPES PLC 2.49 BARCLAYS PLC 2.46 12 months to: IMPERIAL TOBACCO GROUP PLC 2.38 March 2008 (6.70) (7.37) (8.31) (3.25) - TELEFONICA S.A. 2.38 March 2007 18.25 17.41 16.23 15.44 - PHILIP MORRIS INC 2.33 March 2006 11.77 11.00 9.91 18.02 - LAFARGE S.A. 2.30 March 2005 10.11 9.28 8.18 10.56 - CHEVRON CORP 2.12 March 2004 50.39 49.55 48.06 43.87 - NOVARTIS AG 2.06 Total 23.97 Past performance is no indication of current or future performance. These performance data do not take account of commissions and costs incurred on the issue and redemption of units. Geographic distribution %

2 a) United States 34.07 CLASS I SHARES VS. MSCI WORLD (NET) INDEX k j b) United Kingdom 18.71 Performance of 100 US dollars invested since inception i c) Japan 11.29 h d) France 7.79 600 g a Fund e) Netherlands 4.77 f 500 f) Spain 3.97 Index e g) Germany 2.94 400 h) Ireland 2.89 d i) Australia 2.72 300 j) Other 8.91 k) Cash & equivalents 1.93 c b Cash value 200 Total 100.00

100 FUND AIM 0 Seeks an attractive long-term rate of return, measured in US dollars, Nov 89 Jan 99 Mar 08 through investment principally in equity securities of companies listed on the world's stock exchanges. Facts and figures Statistics4 Class I Index

Launch date November 1989 Alpha (2.41) - INVESTMENT IMPLEMENTATION Fund manager Colin McQueen Beta 0.98 - Value-orientated, bottom-up approach to stock selection focuses on Martin Moorman R squared 0.86 - businesses with excellent franchises trading at a substantial Noreen Griffin Information ratio (0.66) - discount to their long-term 'fair' value. Doug McGraw Tracking error 3.67 - Preliminary valuation screens are primarily based on price to cash Alex Vislykh Standard deviation 9.84 9.30 flow, price to free cash flow and price to book value. Location London In-depth fundamental research and company visits analyse financial Base currency US dollars ISIN Class I LU0011983359 structure, management, business franchise, products and strategic TER Class I3 1.03 ISIN Class A LU0073230772 value of assets. TER Class A3 1.75 ISIN Class B LU0073230855 Total assets $ 581.6 million Publication date: 16 April 2008. NAV $ 49.56 1 Launch date of Class I shares was November 1989, Class A shares was February 1997 and Class B shares was April 1997. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Equity Global sector. 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 3 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). 4 Based on monthly observations over last 3 years. Please refer to back cover for important information and risk warnings.

Morgan Stanley SICAV Quarterly Report - March 2008 25 Morgan Stanley SICAV 31 MARCH 2008 Indian Equity Fund

1 RETURNS IN US DOLLARS VS. MSCI INDIA BLEND INDEX Portfolio valuations Class I Index Fund (net of fees) % P/CF 18.15 16.04 Peer Group P/BV 5.76 4.71 Period Class I Class A Class B Index Ranking P/E 24.16 21.40 One month (11.06) (11.11) (11.18) (12.68) 20/50 Yield 0.36 0.92 Last three months (28.73) (28.86) (29.03) (26.99) 37/50 Number of holdings 45 68 YTD 2008 (28.73) (28.86) (29.03) (26.99) 37/50 One year 21.66 20.75 19.55 30.64 38/47 Top 10 holdings % Since inception (annualised) 12.06 - - 21.98 - RELIANCE INDUSTRIES LTD 9.20 12 months to: HDFC BANK LTD 6.52 March 2008 21.66 20.75 19.55 30.64 - BHARAT HEAVY ELECTRICALS LTD 4.31 ASEA BROWN BOVERI LTD 4.28 Past performance is no indication of current or future performance. These performance data do not take account of INFOSYS TECHNOLOGY LTD 4.25 commissions and costs incurred on the issue and redemption of units. AXIS BANK LTD 3.83 LARSEN AND TOUBRO LTD 3.68 CLASS I SHARES VS. MSCI INDIA BLEND INDEX2 BHARTI TELE-VENTURES LTD 3.56 Performance of 100 US dollars invested since inception WELSPUN-GUJARAT STAHL LTD 3.45 HOUSING DEVELOPMENT FINANCE CORP 3.34 200 Total 46.42 Fund 180 Sector distribution % Index 160 a) Financials 20.32 j k i b) Industrials 17.05 a 140 h c) Energy 13.23 g d) Materials 13.11

Cash value 120 e) Consumer Discretionary 9.51 f f) Information Technology 6.89 100 g) Consumer Staples 6.03 b h) Telecommunication 80 e Services 4.91 Nov 06 Jul 07 Mar 08 i) Health Care 3.61 j) Utilities 3.45 d c k) Cash & equivalents 1.88 Facts and figures Statistics Class I Index Total 100.00 Launch date November 2006 Alpha - - Fund manager Ruchir Sharma Beta - - Location New York R squared - - FUND AIM Information ratio - - Base currency US dollars Seeks long term capital appreciation, measured in US dollars, by 3 Tracking error - - TER Class I 1.18 investment through the Subsidiary, primarily in the equity securities of 3 Standard deviation - - TER Class A 1.95 companies domiciled or exercising the predominant part of their Total assets $ 48.3 million economic activity in India. NAV $ 29.10 ISIN Class I LU0266116010 ISIN Class A LU0266115632 ISIN Class B LU0266115806 INVESTMENT IMPLEMENTATION Integrated top down macroeconomic and bottom up stock selection disciplines. Emphasis on dynamics, valuation and sentiment. In-depth fundamental company and industry analysis focusing on companies with strong operating earnings/cash flow growth, and undervalued franchises or assets.

Publication date: 16 April 2008. 1 Launch date of Class I, Class A & Class B shares was November 2006. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Equity Global Emerging Markets sector. 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 3 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). Please refer to back cover for important information and risk warnings paragraphs (1) relating to emerging country securities.

26 Morgan Stanley SICAV Quarterly Report - March 2008 Morgan Stanley SICAV 31 MARCH 2008 Japanese Equity Advantage Fund

RETURNS VS. INDEX Portfolio valuations Class I Index Fund (net of fees) % Peer Group P/CF 9.28 6.54 (JPY) (EUR) Ranking P/BV 1.67 1.32 1 2 Period I A B Index IH AH Index (JPY) P/E Forward 12.41 13.79 One month (2.14) (2.20) (2.28) (7.55) - (2.08) - 6/255 Yield 1.81 1.69 Last three months (15.35) (15.48) (15.69) (17.01) - (15.75) - 39/255 Number of holdings 44 1723 YTD 2008 (15.35) (15.48) (15.69) (17.01) - (15.75) - 39/255 One year (22.54) (23.04) (23.82) (28.06) - (22.01) - 12/246 Top 10 holdings % Since inception (annualised)(10.48) - - (12.11) - - - - TSUMURA AND CO. 4.64 12 months to: HITACHI SYSTEMS & SERVICES LTD 4.08 March 2008 (22.54) (23.04) (23.82) (28.06) - - - - AXELL CORP 3.94 HISAMITSU PHARMACEUTICAL CO. INC 3.37 Past performance is no indication of current or future performance. These performance data do not take account of EAST JAPAN RAILWAY CO. 3.36 commissions and costs incurred on the issue and redemption of units. CULTURE CONVENIENCE 3.35 ITO EN LTD 3.33 CLASS I SHARES VS. TOPIX INDEX3 RICOH CO. LTD 3.33 Performance of 100 Japanese yen invested since inception TOYOTA TSUSHO CORP 3.28 CANON INC 3.25 120 Total 35.93 Fund 110 Industry distribution % Index a) Electronic Equipment & k 100 a Instruments 9.26 b b) Commercial Banks 8.41 c) Pharmaceuticals 8.00 90

Cash value d) Office Electronics 6.58 j c e) It Services 6.56 80 f) Machinery 5.17 d g) Trading Companies & 70 Distributors 5.03 May 06 Apr 07 Mar 08 e h) Specialty Retail 4.77 f i) Media 4.12 i h g j) Other 40.58 Facts and figures k) Cash & equivalents 1.51 Launch date May 2006 ISIN Class I LU0248599168 Total 100.00 Fund manager Tadao Minaguchi ISIN Class A LU0248597030 Location Tokyo ISIN Class B LU0248607953 Base currency Japanese yen ISIN Class IH LU0266118909 FUND AIM 4 ISIN Class AH LU0266118818 TER Class I 0.95 Seeks long-term capital appreciation, measured in Japanese yen, 4 TER Class A 1.60 through investment primarily in the equity securities of companies Total assets ¥ 1.9 billion domiciled in or exercising the predominant part of their economic NAV ¥ 2040.82 activity in Japan and which are listed on any exchanges or over-the-counter markets. Publication date: 16 April 2008.

1 Launch date of Class I, Class A & Class B shares was May 2006. Benchmark is TOPIX Index. Morningstar's peer INVESTMENT IMPLEMENTATION group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Equity Japan sector. Bottom-up approach to stock selection focusing on identifying 2 Launch date of euro hedged share classes AH and IH was October 2006. The benchmark is calculated based on companies that generate substantial free cash flow through the the TOPIX total return and 1 month forward rate (or 1 month Libor rate). The trademark right with regard to this effective use of not only their physical capital, but also their benchmark is owned by the Tokyo Stock Exchange, Inc. AH and IH only available in all European jurisdictions (ex intangible values. No style or capitalisation bias. UK). Benchmark data currently unavailable. All investor money in the IH share class was redeemed in August 2007. Preliminary valuation screens are based on low capex-to-sales However, the share class remains open to investment. ratios, high operating profit margin improvement and high operating 3 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. profit growth. 4 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and In-depth fundamental research and company visits are the key to expressed as a percentage of average net assets for the six month period (or since inception if fund launched the process and analyse various types of intangible values such as within this period). brand quality, customer loyalty, technology, management, location, Please refer to back cover for important information and risk warnings. contract rights, regulatory issues and corporate history.

Morgan Stanley SICAV Quarterly Report - March 2008 27 Morgan Stanley SICAV 31 MARCH 2008 Japanese Equity Growth Fund

1 RETURNS IN JAPANESE YEN VS. TOPIX INDEX Portfolio valuations Class I Index Fund (net of fees) % P/CF 2.77 6.54 Peer Group P/BV 0.74 1.32 Period Class I Class A Class B Index Ranking P/E Forward 13.50 13.79 One month (4.26) (4.32) (4.39) (7.55) 22/255 Yield 1.60 1.69 Last three months (18.71) (18.86) (19.05) (17.01) 169/255 Number of holdings 167 1723 YTD 2008 (18.71) (18.86) (19.05) (17.01) 169/255 One year (30.78) (31.28) (31.91) (28.06) 165/246 Top 10 holdings % Three years (annualised) (3.72) (4.41) (5.33) 2.18 189/204 Five years (annualised) 7.63 6.88 5.93 10.33 121/163 TOYOTA MOTOR CORP 3.32 Since inception (annualised) (3.83) - - (1.19) - DENSO CORPORATION 3.32 MITSUI & CO. LTD 2.86 12 months to: RAKUTEN 2.79 March 2008 (30.78) (31.28) (31.91) (28.06) - CANON INC 2.74 March 2007 (10.85) (11.50) (12.38) 0.29 - NITORI CO. LTD 2.41 March 2006 44.64 43.60 42.19 47.85 - JAPAN STEEL WORKS LTD 2.30 March 2005 6.17 5.41 4.45 1.42 - ACCESS CO. LTD 1.82 March 2004 52.44 51.50 50.49 51.12 - HORIBA LTD 1.71 SONY CORP 1.70 Past performance is no indication of current or future performance. These performance data do not take account of Total 24.97 commissions and costs incurred on the issue and redemption of units. Industry distribution % CLASS I SHARES VS. TOPIX INDEX2 a) Electric Appliances 24.08 Performance of 100 Japanese yen invested since inception k j b) Services 12.16 140 a c) Transportation Fund i Equipment 10.60 d) Retail Trade 9.28 120 h Index e) N/A 7.26 f) Machinery 6.18 g 100 g) Chemicals 5.98 b h) Wholesale Trade 5.81 f i) Other Products 3.35 80

Cash value e c j) Other 14.91 d k) Cash & equivalents 0.39 60 Total 100.00

40 Jul 00 May 04 Mar 08 FUND AIM Seeks long-term capital appreciation, measured in Japanese yen, Facts and figures Statistics4 Class I Index through investment primarily in the equity securities of growth orientated, small, medium and large sized companies domiciled in or Alpha (5.90) - Launch date July 2000 exercising the predominant part of their economic activity in Japan Beta 0.97 - Fund manager Hiroshi Ueda and which are listed on any exchanges or over-the-counter markets. Hisanori Sekiya R squared 0.74 - Location Tokyo Information ratio (0.66) - Base currency Japanese yen Tracking error 8.87 - INVESTMENT IMPLEMENTATION TER Class I3 1.48 Standard deviation 17.48 15.49 Growth orientated, bottom-up approach to stock selection aims to TER Class A3 2.20 identify companies with the capacity to generate superior growth in Total assets ¥ 5.6 billion ISIN Class I LU0109966944 earnings. Bias is towards small and mid cap stocks. NAV ¥ 724.88 ISIN Class A LU0109966357 Stocks are screened and ranked based on return on equity, ISIN Class B LU0109966605 operating margin and future growth prospects, price to earnings and projected earnings per share growth. In-depth fundamental research and company visits are key to the process.

Publication date: 16 April 2008. 1 Launch date of Class I, Class A & Class B shares was July 2000. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Equity Japan sector. 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 3 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). 4 Based on monthly observations over last 3 years. Please refer to back cover for important information and risk warnings.

28 Morgan Stanley SICAV Quarterly Report - March 2008 Morgan Stanley SICAV 31 MARCH 2008 Japanese Systematic Equity Fund

1 RETURNS IN JAPANESE YEN VS. TOPIX INDEX Portfolio valuations Class I Index Fund (net of fees) % P/CF 5.94 6.54 Peer Group P/BV 1.13 1.32 Period Class I Class A Class B Index Ranking P/E Forward 13.26 13.79 One month (5.73) (5.77) - (7.55) - Yield 1.89 1.69 Last three months (15.87) (15.97) - (17.01) - Number of holdings 112 1723 YTD 2008 (15.87) (15.97) - (17.01) - One year (29.09) (29.42) - (28.06) - Top 10 holdings % Since inception (annualised) (12.72) - - (13.00) - NINTENDO CO. LTD 3.94 12 months to: TOYOTA MOTOR CORP 3.79 March 2008 (29.09) (29.42) - (28.06) - MITSUBISHI TOKYO FINANCIAL GRP 3.13 MIZUHO FINANCIAL GROUP 2.25 Past performance is no indication of current or future performance. These performance data do not take account of SONY CORP 2.09 commissions and costs incurred on the issue and redemption of units. CANON INC 2.07 TAKEDA CHEMICAL INDUSTRIES LTD 1.90 CLASS I SHARES VS. TOPIX INDEX2 EAST JAPAN RAILWAY CO. 1.88 Performance of 100 Japanese yen invested since inception MILLEA HOLDINGS INC 1.67 MATSUSHITA ELECTRIC INDUSTRIAL 1.64 120 Total 24.36 115 Fund Industry distribution % 110 Index 105 a) Commercial Banks 9.97 k a b) Automobiles 7.66 100 c) Trading Companies & b 95 Distributors 6.53

Cash value d) Household Durables 6.35 90 c e) Chemicals 4.67 85 f) Pharmaceuticals 4.26 j d 80 g) Software 3.94 75 e h) Office Electronics 3.77 i) Metals & Mining 3.69 Jul 06 May 07 Mar 08 f g j) Other 45.51 i h k) Cash & equivalents 3.68 Facts and figures Total 100.00 Launch date July 2006 ISIN Class I LU0257818640 Fund manager Sandip Bhagat ISIN Class A LU0257817089 Feng Chang FUND AIM Location New York Seeks long term capital appreciation, measured in Japanese yen, Base currency Japanese yen through investment primarily in the equity securities of companies 3 TER Class I 0.75 domiciled or exercising the predominant part of their economic activity 3 TER Class A 1.20 in Japan. Total assets ¥ 136.6 million NAV ¥ 1992.95 INVESTMENT IMPLEMENTATION Bottom-up, systematic approach to stock selection which aims to capture the consistency and reliability of a core approach while exploiting market anomalies and pricing inefficiencies. Stock picking process based on proprietary multi-factor model which ranks stocks and industries within each sector by the most effective combination of valuation-related, earnings-related and price-related factors. Integrated risk management approach focuses more on the composition, rather than just the magnitude, of active risk.

Publication date: 16 April 2008. 1 Launch date of Class I, Class A & Class B shares was July 2006. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Equity Japan sector. 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 3 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). Please refer to back cover for important information and risk warnings.

Morgan Stanley SICAV Quarterly Report - March 2008 29 Morgan Stanley SICAV 31 MARCH 2008 Japanese Value Equity Fund

1 RETURNS IN JAPANESE YEN VS. TOPIX INDEX Portfolio valuations Class I Index Fund (net of fees) % P/CF 6.35 6.54 Peer Group P/BV 1.22 1.32 Period Class I Class A Class B Index Ranking P/E Forward 13.40 13.79 One month (6.03) (6.09) (6.17) (7.55) 60/255 Yield 1.96 1.69 Last three months (16.62) (16.77) (16.98) (17.01) 66/255 Number of holdings 70 1723 YTD 2008 (16.62) (16.77) (16.98) (17.01) 66/255 One year (24.23) (24.78) (25.54) (28.06) 18/246 Top 10 holdings % Three years (annualised) 5.48 4.71 3.66 2.18 11/204 Five years (annualised) 11.08 10.30 9.20 10.33 30/163 NINTENDO CO. LTD 4.65 Ten years (annualised) 2.07 1.42 0.41 0.74 24/87 TOYOTA MOTOR CORP 3.83 Since inception (annualised) 0.77 - - (1.03) - MITSUBISHI CORP 3.71 CANON INC 3.58 12 months to: MATSUSHITA ELECTRIC INDUSTRIAL 3.40 March 2008 (24.23) (24.78) (25.54) (28.06) - TOSHIBA CORP 3.05 March 2007 7.89 7.09 6.03 0.29 - DAIKIN INDUSTRIES LTD 2.74 March 2006 43.56 42.53 41.09 47.85 - DAIICHI SANKYO COMPANY LIMITED 2.57 March 2005 2.14 1.41 0.40 1.42 - FUJITSU LTD 2.42 March 2004 41.10 40.24 38.84 51.12 - MITSUMI ELECTRIC CO. LTD 2.32 Total 32.27 Past performance is no indication of current or future performance. These performance data do not take account of commissions and costs incurred on the issue and redemption of units. Industry distribution %

2 a) Electric Appliances 29.42 CLASS I SHARES VS. TOPIX INDEX k b) Machinery 11.04 Performance of 100 Japanese yen invested since inception j c) Chemicals 9.82 i a 180 h d) Transportation Fund Equipment 9.75 160 g e) Other Products 8.80 Index f) Wholesale Trade 6.65 140 f g) Pharmaceutical 6.18 120 h) Construction 2.99 e b i) Nonferrous Metals 1.92 100 j) Other 12.41 d c Cash value k) Cash & equivalents 1.03 80 Total 100.00 60

40 FUND AIM May 93 Oct 00 Mar 08 Seeks long-term capital appreciation, measured in Japanese yen, through investment in the securities of companies listed on the Facts and figures Statistics4 Class I Index exchanges and over-the-counter markets in Japan.

Launch date May 1993 Alpha 3.30 - Fund manager Kunihiko Sugio Beta 0.90 - INVESTMENT IMPLEMENTATION Daiji Ozawa R squared 0.89 - Value-orientated, bottom-up approach to stock selection focuses on Location Tokyo Information ratio 0.64 - businesses with excellent franchises trading at a substantial Base currency Japanese yen Tracking error 5.15 - discount to their long-term 'fair' value. TER Class I3 1.04 Standard deviation 14.72 15.49 Preliminary valuation screens are primarily based on price to cash TER Class A3 1.76 flow, price to book value and price to earnings. Total assets ¥ 93.2 billion ISIN Class I LU0034265487 In-depth fundamental research and company visits analyse financial NAV ¥ 1119.51 ISIN Class A LU0073251851 structure, management, business franchise, products and strategic ISIN Class B LU0073253980 value of assets.

Publication date: 16 April 2008. 1 Launch date of Class I shares was May 1993, Class A shares was February 1997 and Class B shares was July 1997. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Equity Japan sector. 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 3 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). 4 Based on monthly observations over last 3 years. Please refer to back cover for important information and risk warnings.

30 Morgan Stanley SICAV Quarterly Report - March 2008 Morgan Stanley SICAV 31 MARCH 2008 Latin American Equity Fund

1 RETURNS IN US DOLLARS VS. MSCI EM LATIN AMERICA INDEX Portfolio valuations5 Class I Index Fund (net of fees) % Turnover 74% n/a Peer Group Yield 1.95 2.15 Period Class I Class A Class B Index Ranking Number of holdings 41 152 One month (7.22) (7.28) (7.36) (3.39) 22/39 Last three months (4.64) (4.81) (5.05) (1.43) 25/39 Top 10 holdings % YTD 2008 (4.64) (4.81) (5.05) (1.43) 25/39 One year 24.78 23.94 22.71 39.84 32/37 VALE R DOCE-PF A 9.95 Three years (annualised) 44.28 43.32 41.88 46.02 13/34 PETROLEO BRASILEIRO S.A. 9.84 Five years (annualised) 47.87 46.91 45.44 50.37 15/31 AMERICA MOVIL SAB DE CV 9.77 Ten years (annualised) 16.97 16.26 15.06 17.68 10/26 BRADESPAR S.A. 6.38 Since inception (annualised) 15.41 - - 13.90 - WAL-MART DE MEXICO S.A. DE CV 4.91 USINAS SIDERURGICAS DE MINAS G 4.58 12 months to: UNIBANCO UNIAO BANCOS 4.45 March 2008 24.78 23.94 22.71 39.84 - GRUPO FINANCIERO BANORTE S.A. DE 3.52 March 2007 35.44 34.57 33.21 31.26 - MILLICOM INTERNATIONAL CELLULA 3.46 March 2006 77.70 76.49 74.73 69.61 - TENARIS S.A. 3.15 March 2005 33.56 32.66 31.38 33.11 - Total 60.01 March 2004 76.25 75.22 73.45 85.52 - Geographic distribution % Past performance is no indication of current or future performance. These performance data do not take account of commissions and costs incurred on the issue and redemption of units. a) Brazil 61.51 e fgh d b) Mexico 25.02 CLASS I SHARES VS. MSCI EM LATIN AMERICA INDEX2 c c) United States 3.46 d) Argentina 3.15 Performance of 100 US dollars invested since inception e) Chile 2.67 900 f) Colombia 1.40 b g) Panama 0.83 800 Fund h) Cash & equivalents 1.96 a 700 Index Total 100.00 600 500 400

Cash value 300 200 FUND AIM 100 Seeks to maximise total return, measured in US dollars, through investment primarily in the common shares of companies incorporated 0 in Latin American countries. Aug 94 Jun 01 Mar 08 INVESTMENT IMPLEMENTATION Facts and figures Statistics4 Class I Index Country allocation emphasises reasonably valued countries with Launch date August 1994 Alpha (1.74) - improving economic fundamentals. Fund manager Scott Piper Beta 1.05 - Stock selection focuses on companies experiencing strong Cristina Piedrahita R squared 0.93 - earnings growth as a result of privatisations, restructurings, strong Location New York Information ratio (0.26) - management focused on shareholder value, or favourable sector Base currency US dollars Tracking error 6.65 - trends. TER Class I3 1.28 Standard deviation 24.75 22.65 Industries oriented towards domestic economic growth and TER Class A3 1.95 benefiting from increased consumer purchasing power or increased Total assets $ 1.5 billion ISIN Class I LU0052627634 infrastructure investment are favoured. NAV $ 76.49 ISIN Class A LU0073231317 ISIN Class B LU0073231408 Publication date: 16 April 2008. 1 Launch date of Class I shares was August 1994, Class A shares was February 1997 and Class B shares was June 1997. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Equity Latin America sector. 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 3 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). 4 Based on monthly observations over last 3 years. 5 Turnover based on last 12 months. Please refer to back cover for important information and risk warnings paragraph (1) relating to emerging country securities.

Morgan Stanley SICAV Quarterly Report - March 2008 31 Morgan Stanley SICAV 31 MARCH 2008 US Equity Fund

1 RETURNS IN US DOLLARS VS. S&P 500 INDEX Portfolio valuations Class I Index Fund (net of fees) % P/CF 10.27 9.46 Peer Group P/BV 2.58 2.44 Period Class I Class A Class B Index Ranking P/E 13.60 13.48 One month (2.09) (2.11) (2.21) (0.43) 178/437 Yield 2.10 2.19 Last three months (9.74) (9.86) (10.10) (9.45) 144/437 Number of holdings 65 500 YTD 2008 (9.74) (9.86) (10.10) (9.45) 144/437 One year (4.03) (5.79) (6.77) (5.08) 177/414 Top 10 holdings % Three years (annualised) 4.58 3.56 2.51 5.85 230/359 Five years (annualised) 10.23 9.43 8.34 11.32 141/297 GE COMPANY 4.02 Since inception (annualised) 2.29 - - 4.16 - PROCTER & GAMBLE CO. 3.69 UNITED TECHNOLOGIES CORP 3.44 12 months to: MICROSOFT CORP 2.91 March 2008 (4.03) (5.79) (6.77) (5.08) - EXXON MOBIL CORP 2.82 March 2007 8.18 7.57 6.51 11.83 - CISCO SYSTEMS INC 2.74 March 2006 10.18 9.59 8.49 11.73 - PEPSICO INC 2.60 March 2005 3.96 3.58 2.54 6.69 - JP MORGAN CHASE & CO. 2.57 March 2004 36.89 36.42 35.12 35.12 - INTEL CORP 2.32 JOHNSON & JOHNSON 2.31 Past performance is no indication of current or future performance. These performance data do not take account of Total 29.42 commissions and costs incurred on the issue and redemption of units. Sector distribution % CLASS I SHARES VS. S&P 500 INDEX2 a) Information Technology 19.46 Performance of 100 US dollars invested since inception j k h i b) Energy 14.23 a 160 g c) Financials 14.11 Fund d) Industrials 13.08 e) Consumer Staples 12.66 140 Index f f) Health Care 9.57 b g) Consumer Discretionary 7.67 120 h) Materials 3.86 e i) Telecommunication Services 2.07 100

Cash value c j) Utilities 0.88 d k) Cash & equivalents 2.41 80 Total 100.00

60 Dec 01 Feb 05 Mar 08 FUND AIM Seeks long-term capital appreciation, measured in US dollars, through Facts and figures Statistics4 Class I Index investment primarily in equity securities of medium to large sized US companies. Launch date December 2001 Alpha (1.27) - Fund manager Ira Ross Beta 1.02 - James Solloway R squared 0.80 - INVESTMENT IMPLEMENTATION Edward Ripple Information ratio (0.29) - Growth and value stocks are combined to ensure Fund is Location New York Tracking error 4.39 - style-neutral over the full market cycle. Comprehensive risk Base currency US dollars Standard deviation 9.88 8.68 management process manages prospective tracking error. TER Class I3 1.43 Bottom-up approach to stock selection focuses on fundamental TER Class A3 2.00 ISIN Class I LU0137773221 analysis utilising a multi-factor research process. Each candidate is Total assets $ 11.0 million ISIN Class A LU0137773577 studied in context of competitive position and outlook for overall NAV $ 28.55 ISIN Class B LU0137773734 sector. Company visits are key. Quantitative tools and screens are used to evaluate and manage relative risk.

Publication date: 16 April 2008. 1 Launch date of Class I, Class A & Class B shares was December 2001. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Equity USA sector. 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 3 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). 4 Based on monthly observations over last 3 years. Please refer to back cover for important information and risk warnings.

32 Morgan Stanley SICAV Quarterly Report - March 2008 Morgan Stanley SICAV 31 MARCH 2008 US Equity Growth Fund

RETURNS VS. INDEX Portfolio valuations Class I Index Fund (net of fees) % Peer Group P/CF 14.79 7.51 (USD) (EUR) Ranking P/BV 4.50 1.77 1,2 3 Period I A B Index IH AH Index (USD) P/E 20.81 12.14 One month (1.93) (1.99) (2.08) (0.64) (1.85) (1.93) (0.49) 174/437 Yield 0.72 2.95 Last three months (12.02) (12.19) (12.39) (10.26) (12.59) (12.74) (9.92) 306/437 Number of holdings 49 618 YTD 2008 (12.02) (12.19) (12.39) (10.26) (12.59) (12.74) (9.92) 306/437 One year 3.29 2.52 1.48 (1.10) (9.55) (0.15) (3.12) 35/414 Three years (annualised) 10.31 9.45 8.36 5.96 - - - 17/359 Top 10 holdings % Five years (annualised) 11.29 10.47 9.37 9.59 - - - 90/297 Ten years (annualised) 1.76 1.09 0.09 1.00 - - - 63/121 MONSANTO CO. 7.92 Since inception (annualised) 8.88 - - 7.57 - - - - ULTRA PETROLEUM CORP 5.86 AMAZON.COM INC 5.18 12 months to: GOOGLE INC CL A 5.18 March 2008 3.29 2.52 1.48 (1.10) - - - - WYNN RESORTS LTD 4.32 March 2007 6.43 5.60 4.54 6.67 - - - - RESEARCH IN MOTION LTD USD COM 4.27 March 2006 22.08 21.12 19.94 12.76 - - - - BROOKFIELD ASSET MANAGEMENT 4.21 March 2005 0.18 (0.56) (1.55) 0.85 - - - - EBAY INC 4.07 March 2004 26.95 26.16 24.91 31.76 - - - - BERKSHIRE HATHWY 2.83 MASTERCARD INC 2.67 Past performance is no indication of current or future performance. These performance data do not take account of Total 46.51 commissions and costs incurred on the issue and redemption of units.

CLASS I SHARES VS. RUSSELL 1000 GROWTH NET 30% WITHHOLDING TAX TR INDEX4 Sector distribution % Performance of 100 US dollars invested since inception a) Information Technology 24.24 j k h i b) Consumer Discretionary 21.37 550 g a c) Financials 14.64 Fund 500 f d) Materials 12.68 450 e) Energy 7.83 Index 400 e f) Industrials 6.21 350 g) Telecommunication Services 4.21 300 h) Health Care 3.02 d 250 b i) Consumer Staples 1.44 Cash value 200 j) Utilities 0.79 150 c k) Cash & equivalents 3.57 100 Total 100.00 50 Aug 92 Jun 00 Mar 08 FUND AIM

Facts and figures Statistics6 Class I Index Seeks long-term capital appreciation, measured in US dollars, through investment principally in growth oriented common stocks of large Launch date August 1992 Alpha 4.35 - capitalisation US corporations and, to a limited extent, foreign Fund manager Dennis Lynch Beta 1.37 - corporations. David Cohen R squared 0.84 - Sam Chainani Information ratio 0.63 - INVESTMENT IMPLEMENTATION Alexander Norton Tracking error 6.89 - Jason Yeung Standard deviation 14.60 9.74 We believe that value added investment results can be achieved Location New York more consistently through bottom-up analysis and judgement than Base currency US dollars ISIN Class I LU0042381250 through top-down forecasting. Focusing on big ideas and emerging TER Class I5 0.99 ISIN Class A LU0073232471 trends is more important than incremental information flow. TER Class A5 1.76 ISIN Class B LU0073232554 Strong stock selection is primarily a function of investing in Total assets $ 778.9 million ISIN Class IH LU0266117687 companies with sustainable competitive advantages and the ability NAV $ 37.62 ISIN Class AH LU0266117414 to redeploy capital at high rates of return. Analysis focuses on assessing how big a company can be at maturity, return on invested capital trend and free cash flow yield. Publication date: 16 April 2008. 1 Launch date of Class I shares was August 1992, Class A shares was February 1997 and Class B shares was July 1997. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Equity USA sector. 2 The benchmark changed from the Russell 1000 Growth Index to the Russell 1000 Growth Net 30% Withholding Tax TR Index, with effect from 3 July 2006. The Russell 1000 Growth Net 30% Withholding Tax TR Index has been applied retrospectively. 3 Launch date of euro hedged share classes AH and IH was October 2006. Benchmark is Russell 1000 Growth Index Euro Hedged. AH and IH only available in all European jurisdictions (ex UK). All investor money in the IH share class was redeemed in August 2007. However, the share class remains open to investment. 4 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 5 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). 6 Based on monthly observations over last 3 years. Please refer to back cover for important information and risk warnings.

Morgan Stanley SICAV Quarterly Report - March 2008 33 Morgan Stanley SICAV 31 MARCH 2008 US Property Fund

1,2 RETURNS IN US DOLLARS VS. FTSE NAREIT EQUITY REITS (NET) INDEX Portfolio valuations Class I Index Fund (net of fees) % P/CF n/a n/a Peer Group P/BV n/a n/a Period Class I Class A Class B Index Ranking P/E n/a n/a One month 5.87 5.81 5.72 6.06 3/11 Yield 4.93 4.99 Last three months 5.24 5.07 4.79 1.04 1/11 Number of holdings 49 110 YTD 2008 5.24 5.07 4.79 1.04 1/11 One year (16.58) (17.17) (18.03) (18.46) 5/11 Top 10 holdings % Three years (annualised) 13.23 12.43 11.30 10.21 1/9 Five years (annualised) 19.98 19.15 17.97 16.59 1/9 SIMON PROPERTY GROUP LP 8.89 Ten years (annualised) 11.43 10.78 9.68 8.65 1/7 EQUITY RESIDENTIAL PROPERTIES 7.87 Since inception (annualised) 13.87 - - 10.86 - STARWOOD HOTELS & RESORTS WORL 5.34 AVALONBAY COMMUNITIES INC 5.05 12 months to: HOST HOTELS & RESORTS INC 4.99 March 2008 (16.58) (17.17) (18.03) (18.46) - BOSTON PROPERTIES INC 4.92 March 2007 24.32 23.43 22.22 20.35 - BROOKFIELD PROPERTIES CORP 4.73 March 2006 40.00 39.00 37.61 36.43 - MACK-CALI REALTY LP 4.55 March 2005 15.53 14.68 13.56 7.39 - REGENCY CENTERS CORP 4.48 March 2004 48.23 47.37 45.93 49.83 - VORNADO REALTY TRUST 4.47 Total 55.29 Past performance is no indication of current or future performance. These performance data do not take account of commissions and costs incurred on the issue and redemption of units. Industry distribution %

CLASS I SHARES VS. FTSE NAREIT EQUITY REITS (NET) INDEX3 a) Residential Apartments 17.97 j k b) Office 15.79 Performance of 100 US dollars invested since inception a i c) Regional Malls 15.35 h 700 d) Lodging/Resorts 15.20 Fund g e) Shopping Centers 8.15 600 f) Diversified 5.34 Index f b g) Health Care 5.14 500 h) Industrial 4.91 e 400 i) Self Storage 3.23 j) Other 5.43 300 k) Cash & equivalents 3.50 d c

Cash value Total 100.00 200

100 FUND AIM 0 Seeks to provide above average current income and long-term capital Jan 96 Feb 02 Mar 08 appreciation, measured in US dollars, by investing in equity securities of companies in the US real estate industry. Facts and figures Statistics5 Class I Index

Launch date January 1996 Alpha 3.02 - INVESTMENT IMPLEMENTATION Fund manager Ted Bigman Beta 0.89 - Top-down asset allocation overlay is combined with a bottom-up Location New York R squared 0.89 - valuation focus. Base currency US dollars Information ratio 0.57 - Key regional criteria include demographic and macroeconomic TER Class I4 1.05 Tracking error 5.33 - considerations (e.g. population, employment, household formation TER Class A4 1.77 Standard deviation 15.52 16.42 and income). Total assets $ 204.5 million When selecting securities, valuation including underlying asset NAV $ 49.80 ISIN Class I LU0073233875 values, values per square foot and property yields are emphasised. ISIN Class A LU0073233958 Property portfolio composition, lease expiration, capital structure ISIN Class B LU0073234097 and management are also taken into account.

Publication date: 16 April 2008. 1 Launch date of Class I shares was January 1996, Class A shares was February 1997 and Class B shares was March 1997. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Property Shares USA sector. 2 The benchmark changed from the NAREIT Equity Index to the FTSE NAREIT Equity REITs (Net) Index, with effect from 1 August 2006. The FTSE NAREIT Equity REITS (Net) Index, which is net of tax, has been applied retrospectively to all time periods since the Fund's inception. 3 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 4 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). 5 Based on monthly observations over last 3 years. Please refer to back cover for important information and risk warnings paragraph (4) relating to securities of companies engaged in the real estate industry.

34 Morgan Stanley SICAV Quarterly Report - March 2008 Morgan Stanley SICAV 31 MARCH 2008 US Small Cap Growth Fund

RETURNS IN US DOLLARS VS. Portfolio valuations Class I Index RUSSELL 2000 GROWTH NET 30% WITHHOLDING TAX TR INDEX1,2 Fund (net of fees) % P/CF 16.73 12.33 P/BV 3.58 2.75 Peer Group P/E 24.70 17.85 Period Class I Class A Class B Index Ranking Yield 0.60 0.67 One month (1.24) (1.31) (1.40) (0.60) 21/70 Number of holdings 62 1249 Last three months (12.22) (12.35) (12.58) (12.87) 44/70 YTD 2008 (12.22) (12.35) (12.58) (12.87) 44/70 One year (11.52) (12.15) (13.03) (9.09) 40/70 Top 10 holdings % Three years (annualised) 4.52 3.78 2.74 5.58 44/67 STRAYER EDUCATION INC 4.39 Five years (annualised) 14.52 13.73 12.58 14.07 22/53 TECHNE CORP 4.18 Ten years (annualised) 8.58 7.90 6.82 1.60 7/30 Since inception (annualised) 9.42 - - 6.39 - BLUE NILE INC 3.85 ILLUMINA INC 3.64 12 months to: GREENHILL & CO. INC 3.56 March 2008 (11.52) (12.15) (13.03) (9.09) - ADVISORY BOARD 3.35 March 2007 0.58 (0.13) (1.13) 1.41 - EAGLE MATERIALS INC 3.21 March 2006 28.29 27.39 26.12 27.65 - TEXAS INDUSTRIES INC 2.94 March 2005 11.44 10.64 9.54 0.74 - CONTANGO OIL & GAS CO. 2.75 March 2004 54.83 53.87 52.26 62.90 - COSTAR GROUP INC 2.73 Total 34.60 Past performance is no indication of current or future performance. These performance data do not take account of commissions and costs incurred on the issue and redemption of units. Sector distribution %

CLASS I SHARES VS. a) Consumer Discretionary 41.85 RUSSELL 2000 GROWTH NET 30% WITHHOLDING TAX TR INDEX3 i b) Technology 11.44 g h Performance of 100 US dollars invested since inception f c) Financial Services 10.50 d) Health Care 10.26 600 e) Materials & Processing 9.66 e a Fund f) Other Energy 5.60 500 g) Producer Durables 3.43 Index h) Auto & Transportation 0.55 400 d i) Cash & equivalents 6.71 Total 100.00 300 c b

Cash value 200

100 FUND AIM 0 Seeks long-term capital appreciation, measured in US dollars, by Aug 91 Dec 99 Mar 08 investing primarily in the common shares of small and medium sized US companies and, to a limited extent, foreign corporations that are early in their life cycle, but which have the potential to become major 5 Facts and figures Statistics Class I Index enterprises (emerging growth companies). Launch date August 1991 Alpha (1.06) - Fund manager Dennis Lynch Beta 0.85 - INVESTMENT IMPLEMENTATION David Cohen R squared 0.80 - We believe that value added investment results can be achieved Sam Chainani Information ratio (0.16) - more consistently through bottom-up analysis and judgement than Alexander Norton Tracking error 6.80 - through top-down forecasting. Focusing on big ideas and emerging Jason Yeung Standard deviation 14.44 15.22 trends is more important than incremental information flow. Location New York Strong stock selection is primarily a function of investing in Base currency US dollars ISIN Class I LU0011983607 companies with sustainable competitive advantages and the ability TER Class I4 1.37 ISIN Class A LU0073229501 to redeploy capital at high rates of return. TER Class A4 2.10 ISIN Class B LU0073229683 Analysis focuses on assessing how big a company can be at Total assets $ 44.5 million maturity, return on invested capital trend and free cash flow yield. NAV $ 44.48

Publication date: 16 April 2008. 1 Launch date of Class I shares was August 1991, Class A shares was February 1997 and Class B shares was June 1997. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Smaller Companies USA sector. 2 The benchmark changed from the Russell 2000 Growth Index to the Russell 2000 Growth Net 30% Withholding Tax TR Index, with effect from 3 July 2006. The Russell 2000 Growth Net 30% Withholding Tax TR Index has been applied retrospectively. 3 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 4 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). 5 Based on monthly observations over last 3 years. Please refer to back cover for important information and risk warnings paragraph (3) relating to securities of small capitalisation companies.

Morgan Stanley SICAV Quarterly Report - March 2008 35 Morgan Stanley SICAV 31 MARCH 2008 US Systematic Equity Fund

1 RETURNS IN US DOLLARS VS. S&P 500 (NET) INDEX Portfolio valuations Class I Index Fund (net of fees) % P/CF 9.13 9.46 Peer Group P/BV 2.17 2.44 Period Class I Class A Class B Index Ranking P/E 12.82 13.48 One month (3.52) (3.58) - (0.48) 275/437 Yield 1.54 2.19 Last three months (13.36) (13.49) - (9.59) 360/437 Number of holdings 180 500 YTD 2008 (13.36) (13.49) - (9.59) 360/437 One year (9.79) (10.21) - (5.63) 313/414 Top 10 holdings % Since inception (annualised) 1.73 - - 3.61 - EXXON MOBIL CORP 3.30 12 months to: HEWLETT-PACKARD CO. 2.32 March 2008 (9.79) (10.21) - (5.63) - IBM CORP 2.21 LOEWS CORP 2.09 Past performance is no indication of current or future performance. These performance data do not take account of AT&T CORP 2.02 commissions and costs incurred on the issue and redemption of units. CONOCOPHILLIPS 1.98 PHILIP MORRIS INC 1.81 CLASS I SHARES VS. S&P 500 (NET) INDEX2 CVS CORP 1.75 Performance of 100 US dollars invested since inception MCDONALDS CORP 1.59 GOLDMAN SACHS GROUP INC 1.52 135 Total 20.59 Fund 130 Geographic distribution % 125 Index a) United States 93.35 120 bcd e b) Israel 0.65 115 c) United Kingdom 0.62 d) Peru 0.62 110 Cash value e) Cash & equivalents 4.76 105 Total 100.00 100 95 May 06 Apr 07 Mar 08

a Facts and figures

Launch date May 2006 ISIN Class I LU0248607441 Fund manager Sandip Bhagat ISIN Class A LU0248607011 FUND AIM Feng Chang Seeks long-term capital appreciation, measured in US dollars, through Location New York investment primarily in the equity securities of companies domiciled or Base currency US dollars exercising the predominant part of their economic activity in the US. TER Class I3 0.75 TER Class A3 1.20 INVESTMENT IMPLEMENTATION Total assets $ 9.4 million NAV $ 25.80 Bottom-up, systematic approach to stock selection which aims to capture the consistency and reliability of a core approach while exploiting market anomalies and pricing inefficiencies. Stock picking process based on proprietary multi-factor model which ranks stocks and industries within each sector by the most effective combination of valuation-related, earnings-related and price-related factors. Integrated risk management approach focuses more on the composition, rather than just the magnitude, of active risk.

Publication date: 16 April 2008. 1 Launch date of Class I, Class A & Class B shares was May 2006. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Equity USA sector. 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 3 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). Please refer to back cover for important information and risk warnings.

36 Morgan Stanley SICAV Quarterly Report - March 2008 Morgan Stanley SICAV 31 MARCH 2008 US Value Equity Fund

RETURNS VS. INDEX Portfolio valuations Class I Index Fund (net of fees) % Peer Group P/CF 8.81 9.46 (USD) (EUR) Ranking P/BV 1.89 2.44 1 2 Period I A B Index IH AH Index (USD) P/E 12.81 13.48 One month (3.86) (3.86) (3.98) (0.43) - (3.73) (4.50) 301/437 Yield 2.94 2.19 Last three months (9.09) (9.25) (9.47) (9.45) - (10.31) (16.20) 101/437 Number of holdings 74 500 YTD 2008 (9.09) (9.25) (9.47) (9.45) - (10.31) (16.20) 101/437 One year (12.60) (13.27) (14.13) (5.08) - (14.90) (20.83) 368/414 Top 10 holdings % Three years (annualised) 2.66 1.88 0.87 5.85 - - - 293/359 Five years (annualised) 11.18 10.36 9.25 11.32 - - - 93/297 INTERNATIONAL PAPER CO. 3.90 Since inception (annualised) 1.60 - - 1.61 - - - - WAL-MART STORES INC 3.88 BANK OF AMERICA CORP 3.55 12 months to: VIACOM INC 3.41 March 2008 (12.60) (13.27) (14.13) (5.08) - - - - COMCAST CORP 3.11 March 2007 13.95 13.08 11.94 11.83 - - - - VERIZON COMMUNICATIONS INC 3.08 March 2006 8.64 7.83 6.77 11.73 - - - - WYETH INC 2.74 March 2005 11.75 10.86 9.76 6.69 - - - - DUPONT EI NEMOUR 2.67 March 2004 40.47 39.65 38.17 35.12 - - - - CHUBB CORP 2.62 BRISTOL-MYERS SQUIBB CO. 2.58 Past performance is no indication of current or future performance. These performance data do not take account of Total 31.54 commissions and costs incurred on the issue and redemption of units. Sector distribution % CLASS I SHARES VS. S&P 500 INDEX3 a) Financials 25.44 Performance of 100 US dollars invested since inception i g h b) Consumer Staples 21.56 150 f a c) Consumer Discretionary 14.66 d) Health Care 14.40 140 Fund e e) Materials 8.08 130 Index f) Information Technology 6.48 120 g) Telecommunication Services 4.99 110 d h) Industrials 2.14 100 b i) Cash & equivalents 2.27

Cash value 90 Total 100.00 c 80 70 60 FUND AIM Jul 99 Nov 03 Mar 08 Seeks to provide reasonable long-term capital growth, measured in US dollars. Investments will be sought in equity securities that the Facts and figures Statistics6 Class I Index Company believes to be undervalued relative to the stock market in general at the time of purchase. The Fund will invest primarily in the 4 Launch date July 1999 Alpha (3.19) - common or preferred stocks of companies which are located in the Fund manager Robert Baker Beta 0.84 - US. Kevin Holt R squared 0.71 - Jason Leder Information ratio (0.65) - INVESTMENT IMPLEMENTATION Devin Armstrong Tracking error 4.89 - Location Houston Standard deviation 8.70 8.68 Value orientated, bottom-up process begins with a quantitative Base currency US dollars screen using proprietary models to identify stocks with below TER Class I5 0.95 ISIN Class I LU0054797203 average price/earnings ratios and high dividend yields. TER Class A5 1.73 ISIN Class A LU0073233446 Fundamental research focuses on business franchise, competitive Total assets $ 435.9 million ISIN Class B LU0073233529 environment, future growth rates, ability to generate high levels of NAV $ 21.91 ISIN Class IH LU0266117174 free cash flow and management quality. ISIN Class AH LU0266116879 Large-cap, high quality companies with stable, conservative characteristics, attractive dividend yields, low valuations and low Publication date: 16 April 2008. price/earnings multiples are sought. 1 Launch date of Class I, Class A & Class B shares was July 1997. Benchmark is S&P 500 Index. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Equity USA sector. 2 Launch date of euro hedged share classes AH and IH was October 2006. Benchmark is S&P 500 Index Euro Hedged. AH and IH only available in all European jurisdictions (ex UK). All investor money in the IH share class was redeemed in August 2007. However, the share class remains open to investment. 3 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 4 This Fund was reconstructed in July 1999. Original inception: May 1994. 5 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). 6 Based on monthly observations over last 3 years. Please refer to back cover for important information and risk warnings.

Morgan Stanley SICAV Quarterly Report - March 2008 37 Morgan Stanley SICAV 31 MARCH 2008 Emerging Markets Debt Fund

RETURNS VS. INDEX Portfolio characteristics Class I Index Fund (net of fees) % Peer Group Duration 6.17 7.26 (USD) (EUR) Ranking Average maturity 11.77 14.37 1 2 Period I A B Index IH AH Index (USD) Average yield to maturity 6.41 6.20 One month 0.03 0.00 (0.10) (0.04) - 0.09 0.07 55/120 Number of holdings 96 196 Last three months 0.71 0.58 0.32 0.63 - 0.57 0.78 70/119 YTD 2008 0.71 0.58 0.32 0.63 - 0.57 0.78 70/119 Asset breakdown % One year 4.93 4.33 3.28 4.45 - 3.09 3.59 60/112 Three years (annualised) 10.74 10.12 9.02 9.64 - - - 32/82 Sovereign 75.99 Five years (annualised) 11.96 11.31 10.20 11.38 - - - 36/67 Corporate Bonds 10.53 Ten years (annualised) 9.05 8.41 7.33 9.58 - - - 25/34 Brady Bonds 5.96 Since inception (annualised) 14.26 - - 13.47 - - - - Local Currency 1.51 Quasi Sovereign 0.82 12 months to: Other 1.23 March 2008 4.93 4.33 3.28 4.45 - - - - Cash & equivalents 3.96 March 2007 11.35 10.73 9.64 10.86 - - - - Total 100.00 March 2006 16.25 15.58 14.44 13.83 - - - - March 2005 5.44 4.85 3.78 6.69 - - - - Geographic distribution % March 2004 22.82 22.07 20.86 21.87 - - - - a) Mexico 17.86 k b) Russia 16.74 Past performance is no indication of current or future performance. These performance data do not take account of j a commissions and costs incurred on the issue and redemption of units. c) Brazil 15.57 i d) Philippines 10.04 CLASS I SHARES VS. JPM EMERGING MARKETS BOND INDEX GLOBAL3 h e) Turkey 8.47 g f) Venezuela 7.70 Performance of 100 US dollars invested since inception b g) Peru 3.31 f 600 h) Indonesia 2.36 Fund i) Panama 2.24 500 e j) Other 11.73 Index k) Cash & equivalents 3.96 d c 400 Total 100.00

300 FUND AIM

Cash value 200 Seeks to maximise total return, measured in US dollars, through investment in the debt securities of government and 100 government-related issuers located in emerging countries. 0 Apr 95 Oct 01 Mar 08 INVESTMENT IMPLEMENTATION Active top-down analysis of global environment and impact on emerging markets of global events determines overall risk Facts and figures Statistics5 Class I Index exposure and country allocations. Launch date April 1995 Alpha 1.10 - Bottom-up stock selection is based on in-depth research and value Fund manager Abigail McKenna Beta 1.06 - and quantitative analysis. Eric Baurmeister R squared 0.84 - Risk measurement is integral to the process and risk exposure is Federico Kaune Information ratio 0.49 - constantly monitored. Location New York Tracking error 2.26 - Base currency US dollars Standard deviation 5.58 4.82 Publication date: 16 April 2008. 4 TER Class I 1.26 1 Launch date of Class I shares was April 1995, Class A shares was February TER Class A4 1.83 ISIN Class I LU0057132697 1997 and Class B shares was July 1997. Benchmark is JPM Emerging Total assets $ 223.7 million ISIN Class A LU0073230004 Markets Bond Index Global. Morningstar's peer group rankings refer to Class A NAV $ 59.19 ISIN Class B LU0073230343 and are taken from the Offshore and International Funds universe, in the Fixed ISIN Class IH LU0266119469 Income Global Emerging Markets sector. ISIN Class AH LU0266119204 2 Launch date of euro hedged share classes AH and IH was October 2006. Benchmark is JPM Emerging Markets Bond Index Global Euro Hedged. AH and IH only available in all European jurisdictions (ex UK). All investor money in the IH share class was redeemed in August 2007. However, the share class remains open to investment. 3 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 4 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). 5 Based on monthly observations over last 3 years. Please refer to back cover for important information and risk warnings paragraphs (1) relating to emerging country securities.

38 Morgan Stanley SICAV Quarterly Report - March 2008 Morgan Stanley SICAV 31 MARCH 2008 Emerging Markets Domestic Debt Fund

1 RETURNS IN US DOLLARS VS. JPM GBI - EM GLOBAL DIVERSIFIED Portfolio characteristics Class I Index Fund (net of fees) % Duration 2.58 4.26 Peer Group Average maturity 3.80 6.40 Period Class I Class A Class B Index Ranking Average yield to maturity 9.78 8.81 One month (0.52) (0.56) (0.67) (0.88) 81/120 Number of holdings 40 170 Last three months 2.00 1.86 1.59 2.24 52/119 YTD 2008 2.00 1.86 1.59 2.24 52/119 Asset breakdown % One year 11.54 10.92 9.80 16.48 41/112 Since inception (annualised) 13.22 - - 18.39 - Sovereign 91.55 Corporate Bonds 2.13 12 months to: Local Currency 1.55 March 2008 11.54 10.92 9.80 16.48 - Other 1.15 Cash & equivalents 3.63 Past performance is no indication of current or future performance. These performance data do not take account of Total 100.00 commissions and costs incurred on the issue and redemption of units. Geographic distribution % CLASS I SHARES VS. JPM GBI - EM GLOBAL DIVERSIFIED2 a) Hungary 15.47 Performance of 100 US dollars invested since inception k a b) Indonesia 11.57 j 130 c) Brazil 11.47 Fund d) Mexico 10.73 125 i e) Turkey 9.40 b f) South Africa 8.76 Index h 120 g) Malaysia 6.32 115 g h) Russia 4.59 c i) Nigeria 3.77 110 f j) Other 14.28

Cash value k) Cash & equivalents 3.63 d 105 e Total 100.00 100

95 FUND AIM Feb 07 Sep 07 Mar 08 Seeks to maximise total return primarily through investment in a portfolio of emerging market bonds and other emerging market debt Facts and figures Statistics Class I Index securities, denominated in the local currency of issue. The Fund intends to invest its assets in emerging market debt securities that Alpha - - Launch date February 2007 provide a high level of current income, while at the same time holding Beta - - Fund manager Abigail McKenna the potential for capital appreciation. Eric Baurmeister R squared - - Federico Kaune Information ratio - - Location New York Tracking error - - INVESTMENT IMPLEMENTATION Base currency US dollars Standard deviation - - Active top-down analysis of global environment and impact on TER Class I3 1.27 emerging markets of global events determines overall risk TER Class A3 1.83 ISIN Class I LU0283960234 exposure and country allocations. Total assets $ 177.2 million ISIN Class A LU0283960077 Proprietary valuation models allow independent analysis of NAV $ 28.60 ISIN Class B LU0283960150 currencies and interest rates. Bottom-up stock selection is based on in-depth research and value and quantitative analysis.

Publication date: 16 April 2008. 1 Launch date of Class I, Class A & Class B shares was February 2007. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Fixed Income Global Emerging Markets sector. 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 3 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). Please refer to back cover for important information and risk warnings paragraphs (1) relating to emerging country securities.

Morgan Stanley SICAV Quarterly Report - March 2008 39 Morgan Stanley SICAV 31 MARCH 2008 Euro Bond Fund

1,2 RETURNS IN EURO VS. LEHMAN EURO-AGGREGATE INDEX Portfolio characteristics Class I Index Fund (net of fees) % Duration 5.40 5.30 Peer Group Average maturity 8.07 7.37 Period Class I Class A Class B Index Ranking Average yield to maturity 4.60 4.35 One month (1.05) (1.01) (1.12) (0.77) 138/220 Number of holdings 140 2713 Last three months 1.44 1.32 1.04 1.85 101/219 YTD 2008 1.44 1.32 1.04 1.85 101/219 Duration distribution % One year 1.99 1.70 0.62 3.00 97/209 Three years (annualised) 1.72 1.30 0.31 2.27 83/166 Less than 1 year 3.69 Five years (annualised) 3.01 2.59 1.55 3.60 53/137 1 to 3 years 28.98 Since inception (annualised) 3.54 - - 4.28 - 3 to 5 years 24.09 5 to 7 years 16.43 12 months to: 7 to 10 years 6.96 March 2008 1.99 1.70 0.62 3.00 - Greater than 10 years 15.66 March 2007 1.75 1.25 0.31 1.97 - Cash & equivalents 4.20 March 2006 1.40 0.97 0.00 1.85 - Total 100.00 March 2005 4.90 4.55 3.44 5.70 - March 2004 5.05 4.55 3.45 5.55 - Geographic distribution of issuers %

a) France 26.86 Past performance is no indication of current or future performance. These performance data do not take account of j k b) Netherlands 23.92 commissions and costs incurred on the issue and redemption of units. h i g a c) United Kingdom 14.18 CLASS I SHARES VS. LEHMAN EURO-AGGREGATE INDEX3 f d) United States 8.51 e) Germany 7.89 Performance of 100 euro invested since inception e f) Italy 3.98 160 g) Ireland 3.72 Fund h) Australia 1.89 150 d i) Spain 1.51 Index j) Other 3.36 140 b c k) Cash & equivalents 4.20 130 Total 100.00

120

Cash value FUND AIM 110 Seeks to provide an attractive rate of return, measured in euro, 100 through investment in euro-denominated fixed income securities of high quality issued by governments, agencies and corporations. 90 Dec 98 Aug 03 Mar 08 INVESTMENT IMPLEMENTATION Interest rate strategy is based on real interest rates, prospective Facts and figures Statistics6 Class I Index inflation and yield curve slopes. Proprietary technology is used to Launch date4 December 1998 Alpha (0.55) - manage sensitivity to interest rate movements. Fund manager Michael Kushma Beta 0.95 - Country allocation is determined by comparing real interest rates, Christian Roth R squared 0.96 - yield curves and inflation prospects. Location London Information ratio (0.97) - At a security level, forward-looking credit analysis calculates fair Base currency euro Tracking error 0.57 - value option and credit-adjusted spreads. TER Class I5 0.73 Standard deviation 2.81 2.91 TER Class A5 1.15 Publication date: 16 April 2008. € ISIN Class I LU0042383389 Total assets 773.0 million 1 Launch date of Class I, Class A & Class B class shares was December 1998. NAV € 11.26 ISIN Class A LU0073254285 Morningstar's peer group rankings refer to Class A and are taken from the ISIN Class B LU0073254871 Offshore and International Funds universe, in the Fixed Income EUR sector. 2 On 1 May 2007, the benchmark for the MS SICAV Euro Bond Fund was changed from the MSCI Euro Debt Index to the Lehman Euro-Aggregate Index. The benchmark for Fund is a blend of the MSCI Euro Debt Index to 30 April 2007 and Lehman Euro-Aggregate Index thereafter. The benchmark is calculated by geometrically chain-linking the monthly returns. 3 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 4 This Fund was reconstructed in December 1998. Original inception: September 1992. 5 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). 6 Based on monthly observations over last 3 years. Please refer to back cover for important information and risk warnings.

40 Morgan Stanley SICAV Quarterly Report - March 2008 Morgan Stanley SICAV 31 MARCH 2008 Euro Corporate Bond Fund

1,2 RETURNS IN EURO VS. LEHMAN EURO-AGGREGATE: CORPORATE INDEX Portfolio characteristics Class I Index Fund (net of fees) % Duration 3.86 4.40 Peer Group Average maturity 10.98 5.62 Period Class I Class A Class B Index Ranking Average yield to maturity 6.74 5.67 One month (2.12) (2.19) (2.26) (1.66) 47/65 Number of holdings 112 1189 Last three months (1.69) (1.81) (2.06) (0.32) 47/65 YTD 2008 (1.69) (1.81) (2.06) (0.32) 47/65 Quality distribution (S&P) % One year (3.39) (3.82) (4.77) (1.06) 44/64 Three years (annualised) 0.35 (0.08) (1.08) 1.00 29/56 AAA 5.10 Five years (annualised) 3.04 2.61 1.59 3.31 11/38 AA 19.99 Since inception (annualised) 3.63 - - 4.38 - A 36.06 BBB 26.33 12 months to: BB 6.81 March 2008 (3.39) (3.82) (4.77) (1.06) - B 2.27 March 2007 3.21 2.83 1.77 2.61 - CCC or below 0.21 March 2006 1.35 0.88 (0.10) 1.48 - N/A 1.26 March 2005 5.01 4.59 3.59 5.74 - Cash & equivalents 1.95 March 2004 9.45 9.01 7.89 8.04 - Total 100.00

Past performance is no indication of current or future performance. These performance data do not take account of Industry distribution % commissions and costs incurred on the issue and redemption of units. a) Banks 24.71 k CLASS I SHARES VS. LEHMAN EURO-AGGREGATE: CORPORATE INDEX3 b) Diversified Finan Serv 18.26 c) Telecommunications 13.94 Performance of 100 euro invested since inception j a d) Insurance 4.38 150 e) Agriculture 4.35 f) Pharmaceuticals 3.64 Fund i 140 h g) Building Materials 3.22 Index g h) Chemicals 2.51 f i) Food 2.09 130 b e j) Other 20.93 120 d k) Cash & equivalents 1.95 c Total 100.00

Cash value 110

100 FUND AIM Seeks to provide an attractive rate of return, measured in euro, 90 primarily through investment in euro denominated fixed income Sep 01 Dec 04 Mar 08 securities of high quality issued by corporations and non government related issuers. Facts and figures Statistics5 Class I Index

Launch date September 2001 Alpha (0.65) - INVESTMENT IMPLEMENTATION Fund manager Christian Roth Beta 0.93 - Interest rate sensitivity and yield curve exposure are carefully Richard Ford R squared 0.86 - monitored. Location London Information ratio (0.67) - Industry analysis is a natural output of fundamental bottom-up Base currency euro Tracking error 0.96 - security research. Relative value and, for risk control purposes, TER Class I4 0.75 Standard deviation 2.55 2.56 absolute and relative sector weightings, are monitored versus the TER Class A4 1.17 benchmark. Total assets € 159.6 million ISIN Class I LU0132602656 NAV € 31.33 ISIN Class A LU0132601682 Publication date: 16 April 2008. ISIN Class B LU0132602227 1 Launch date of Class I, Class A & Class B shares was September 2001. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Fixed Income EUR sector. 2 On 1 June 2007, the benchmark for the MS SICAV Euro Corporate Bond Fund was changed from the MSCI ECCI Index to the Lehman Euro-Aggregate Corporate Index. The benchmark for Fund is a blend of the MSCI ECCI Index to 31 May 2007 and Lehman Euro-Aggregate Corporate Index thereafter. The benchmark is calculated by geometrically chain-linking the monthly returns. 3 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 4 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). 5 Based on monthly observations over last 3 years. Please refer to back cover for important information and risk warnings.

Morgan Stanley SICAV Quarterly Report - March 2008 41 Morgan Stanley SICAV 31 MARCH 2008 Euro Strategic Bond Fund

1,2 RETURNS IN EURO VS. LEHMAN EURO-AGGREGATE INDEX Portfolio characteristics Class I Index Fund (net of fees) % Duration 5.92 5.30 Peer Group Average maturity 10.51 7.37 Period Class I Class A Class B Index Ranking Average yield to maturity 6.27 4.35 One month (1.83) (1.85) (1.94) (0.77) 54/73 Number of holdings 172 2713 Last three months 0.20 0.10 (0.15) 1.85 42/74 YTD 2008 0.20 0.10 (0.15) 1.85 42/74 Quality distribution (S&P) % One year (0.23) (0.66) (1.64) 3.00 49/73 Three years (annualised) 0.97 0.56 (0.45) 2.27 43/63 AAA 45.71 Five years (annualised) 2.82 2.40 1.38 3.60 32/60 AA 12.57 Ten years (annualised) 3.85 3.41 2.39 4.72 25/39 A 14.81 Since inception (annualised) 6.66 - - 7.29 - BBB 10.95 BB 6.34 12 months to: B 3.46 March 2008 (0.23) (0.66) (1.64) 3.00 - CCC or below 0.90 March 2007 1.75 1.37 0.34 1.97 - N/A 2.42 March 2006 1.40 0.99 (0.04) 1.85 - Cash & equivalents 2.83 March 2005 4.99 4.52 3.52 5.70 - Total 100.00 March 2004 6.34 5.92 4.85 5.55 - Sector distribution % Past performance is no indication of current or future performance. These performance data do not take account of commissions and costs incurred on the issue and redemption of units. a) Financial 39.32 j k gh i b) Government 27.91 f CLASS I SHARES VS. LEHMAN EURO-AGGREGATE INDEX3 c) Communications 8.04 e d) Consumer, Non-Cyclical 6.90 Performance of 100 euro invested since inception a e) Industrial 5.44 d 400 f) Mortgage Securities 4.36 Fund g) Basic Materials 1.56 350 c h) Utilities 1.41 Index i) Consumer, Cyclical 1.00 300 j) Other 1.23 250 k) Cash & equivalents 2.83 b Total 100.00 200 Cash value 150 FUND AIM 100 Seeks to provide an attractive rate of return, measured in euro, through market, instrument and currency selection. The Fund consists 50 of fixed income securities of varying maturities denominated primarily Feb 91 Sep 99 Mar 08 in the euro and other European currencies which are probable candidates for joining the Economic and Monetary Union at a later Facts and figures Statistics5 Class I Index date.

Launch date February 1991 Alpha (1.30) - Fund manager Michael Kushma Beta 0.95 - INVESTMENT IMPLEMENTATION Christian Roth R squared 0.89 - Interest rate strategy and country allocation are based on real Richard Ford Information ratio (1.29) - interest rates, prospective inflation and yield curve slopes. Location London Tracking error 1.00 - Proprietary technology is used to manage sensitivity to interest rate Base currency euro Standard deviation 2.94 2.91 movements. TER Class I4 0.72 Country and currency exposure are separated; we favour TER Class A4 1.14 ISIN Class I LU0034265644 higher-yielding currencies. Total assets € 206.7 million ISIN Class A LU0073234253 At a security level, forward-looking credit analysis calculates fair NAV € 30.09 ISIN Class B LU0073234766 value option and credit-adjusted spreads.

Publication date: 16 April 2008. 1 Launch date of Class I shares was February 1991, Class A class shares was February 1997 and Class B shares was September 1997. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Fixed Income Europe sector. 2 On 1 May 2007, the benchmark for the MS SICAV Euro Strategic Bond Fund was changed from the MSCI Euro Debt Index to the Lehman Euro-Aggregate Index. The benchmark for Fund is a blend of the MSCI Euro Debt Index to 30 April 2007 and Lehman Euro-Aggregate Index thereafter. The benchmark is calculated by geometrically chain-linking the monthly returns. 3 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 4 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). 5 Based on monthly observations over last 3 years. Please refer to back cover for important information and risk warnings.

42 Morgan Stanley SICAV Quarterly Report - March 2008 Morgan Stanley SICAV 31 MARCH 2008 Euro Total Return Bond Fund

1 RETURNS IN EURO VS. ONE MONTH EURIBOR INDEX Portfolio characteristics Class I Index Fund (net of fees) % Duration 0.65 n/a Peer Group Average maturity 10.85 n/a Period Class I Class A Class B Index Ranking Average yield to maturity 5.21 n/a One month (2.33) (2.38) (2.45) 0.35 127/153 Number of holdings 160 n/a Last three months (2.33) (2.42) (2.64) 1.05 124/153 YTD 2008 (2.33) (2.42) (2.64) 1.05 124/153 Quality distribution (S&P) % One year (3.19) (3.55) (4.51) 4.31 110/144 Since inception (annualised) (3.19) - - 4.31 - AAA 20.18 AA 7.34 12 months to: A 12.41 March 2008 (3.19) (3.55) (4.51) 4.31 - BBB 11.22 BB 4.71 Past performance is no indication of current or future performance. These performance data do not take account of B 3.13 commissions and costs incurred on the issue and redemption of units. CCC or below 0.87 N/A 13.17 CLASS I SHARES VS. ONE MONTH EURIBOR INDEX2 Cash & equivalents 26.96 Performance of 100 euro invested since inception Total 100.00

110 Sector distribution % 108 Fund a) Financial 17.82 106 b) Mortgage Securities 13.47 Index a 104 k c) Government 10.19 102 d) Mutual Funds 9.40 100 e) Communications 6.13 f) Industrial 4.24 98 b

Cash value g) Consumer, Non-Cyclical 3.97 96 j h) Utilities 1.78 94 i i) Basic Materials 1.63 h 92 g c j) Other 4.40 90 f k) Cash & equivalents 26.96 e d Mar 07 Sep 07 Mar 08 Total 100.00

Facts and figures Statistics Class I Index FUND AIM Alpha - - Launch date March 2007 Seeks an attractive total rate of return (that is, any capital appreciation Beta - - Fund manager Michael Kushma on an asset plus any income such as interest, yield or dividend earned R squared - - Christian Roth by that asset), measured in euro, through market, instrument and Information ratio - - Richard Ford currency selection. The Fund consists of fixed income securities of Tracking error - - Location London varying maturities, sectors, geographical exposures and currencies. Standard deviation - - Base currency euro The Fund will primarily be invested in fixed income securities hedged 3 TER Class I 0.60 back into euro or denominated primarily in the euro. TER Class A3 0.95 ISIN Class I LU0283960820 Total assets € 98.9 million ISIN Class A LU0283960663 NAV € 24.27 ISIN Class B LU0283960747 INVESTMENT IMPLEMENTATION All aspects of fixed income risk managed actively and separately for total return. Risk apportioned in line with opportunity. Interest rate, yield curve and country allocations based on real interest rates and prospective inflation. Sector and security selection based on forward-looking calculation of fair value option and credit-adjusted spreads.

Publication date: 16 April 2008. 1 Launch date of Class I, Class A & Class B shares was March 2007. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Fixed Income Global EUR based sector. 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 3 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). Please refer to back cover for important information and risk warnings paragraph (5) relating to derivative instruments.

Morgan Stanley SICAV Quarterly Report - March 2008 43 Morgan Stanley SICAV 31 MARCH 2008 European Currencies High Yield Bond Fund

RETURNS IN EURO VS. Portfolio characteristics Class I Index ML EUROPEAN CURRENCY CONSTRAINED HIGH YIELD INDEX1 Fund (net of fees) % Duration 3.71 3.97 Average maturity 9.61 5.57 Peer Group Average yield to maturity 10.88 10.46 Period Class I Class A Class B Index Ranking Number of holdings 106 262 One month (0.42) (0.35) (0.48) (0.22) 18/26 Last three months (5.24) (5.30) (5.57) (6.20) 4/26 Quality distribution (S&P) % YTD 2008 (5.24) (5.30) (5.57) (6.20) 4/26 One year (7.08) (7.45) (8.41) (9.64) 3/25 AA 0.93 Three years (annualised) 2.00 1.60 0.55 1.94 5/23 A 0.95 Five years (annualised) 7.36 6.89 5.83 7.99 5/20 BBB 2.91 Since inception (annualised) (2.71) - - 1.88 - BB 39.96 B 36.93 12 months to: CCC or below 6.82 March 2008 (7.08) (7.45) (8.41) (9.64) - N/A (0.11) March 2007 7.35 6.83 5.71 7.88 - Cash & equivalents 11.63 March 2006 6.40 6.06 5.01 8.66 - Total 100.00 March 2005 9.54 9.00 7.96 11.28 - March 2004 22.70 22.10 20.92 24.58 - Industry distribution %

a) Chemicals 13.15 Past performance is no indication of current or future performance. These performance data do not take account of k commissions and costs incurred on the issue and redemption of units. a b) Packaging&Containers 11.25 c) Diversified Finan Serv 11.13 d) Telecommunications 6.37 CLASS I SHARES VS. b e) Auto Manufacturers 5.28 ML EUROPEAN CURRENCY CONSTRAINED HIGH YIELD INDEX2 f) Media 4.08 Performance of 100 euro invested since inception j g) Commercial Services 3.96 h) Banks 2.91 160 c i) Food 2.82 Fund j) Other 27.43 140 i d k) Cash & equivalents 11.63 Index h g f e Total 100.00 120

100 FUND AIM

Cash value 80 Seeks to provide an attractive rate of return, measured in euro, through investments worldwide primarily in lower rated and unrated 60 fixed income securities issued by governments, agencies and corporations that offer a yield above that generally available on debt 40 securities in the four highest rating categories of S&P or Moody's Dec 98 Aug 03 Mar 08 denominated in European currencies.

Facts and figures Statistics5 Class I Index INVESTMENT IMPLEMENTATION

Launch date3 December 1998 Alpha 0.07 - Focus is on securities of European issuers. Non-European fixed Fund manager Leon Grenyer Beta 0.88 - income securities are used for diversification. Alice La Trobe-Weston R squared 0.94 - Proprietary analysis emphasises forward looking fundamental credit Location London Information ratio 0.05 - research and seeks long-term investments rather than short-term Base currency euro Tracking error 1.24 - trading. TER Class I4 0.88 Standard deviation 4.53 4.98 All bond holdings are hedged in euro and duration is maintained TER Class A4 1.30 within one year of the index. Total assets € 97.5 million ISIN Class I LU0073255688 NAV € 11.94 ISIN Class A LU0073255761 Publication date: 16 April 2008. ISIN Class B LU0073255928 1 Launch date of Class I, Class A & Class B shares was December 1998. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Fixed Income Europe High Yield sector. 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 3 This Fund was reconstructed in December 1998. Original inception: May 1997. 4 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). 5 Based on monthly observations over last 3 years. Please refer to back cover for important information and risk warnings paragraph (2) relating to high yield securities.

44 Morgan Stanley SICAV Quarterly Report - March 2008 Morgan Stanley SICAV 31 MARCH 2008 Global Bond Fund

1,2 RETURNS IN US DOLLARS VS. CITIGROUP WORLD GOVERNMENT BOND INDEX Portfolio characteristics Class I Index Fund (net of fees) % Duration 6.29 6.14 Peer Group Average maturity 9.21 8.09 Period Class I Class A Class B Index Ranking Average yield to maturity 4.44 2.87 One month 2.40 2.33 2.29 3.22 50/136 Number of holdings 167 701 Last three months 8.07 7.92 7.70 9.66 33/136 YTD 2008 8.07 7.92 7.70 9.66 33/136 Duration distribution % One year 16.72 16.18 15.05 20.28 31/131 Three years (annualised) 5.98 5.54 4.49 7.26 41/119 Less than 1 year 3.99 Five years (annualised) 7.57 7.09 6.03 8.10 23/97 1 to 3 years 19.48 Ten years (annualised) 6.22 5.76 4.71 7.17 15/58 3 to 5 years 18.67 Since inception (annualised) 6.95 - - 7.79 - 5 to 7 years 14.69 7 to 10 years 14.39 12 months to: Greater than 10 years 20.39 March 2008 16.72 16.18 15.05 20.28 - Cash & equivalents 8.40 March 2007 6.82 6.41 5.34 7.76 - Total 100.00 March 2006 (4.51) (4.92) (5.88) (4.80) - March 2005 5.10 4.67 3.65 5.55 - Currency % March 2004 15.13 14.49 13.35 13.35 - a) Euro 31.62 k b) Japanese yen 26.38 Past performance is no indication of current or future performance. These performance data do not take account of j hi commissions and costs incurred on the issue and redemption of units. fg c) US Dollar 18.50 e a d) British Pound 7.30 CLASS I SHARES VS. CITIGROUP WORLD GOVERNMENT BOND INDEX3 d e) Canadian Dollar 2.01 f) Brazilian Cruzieros Performance of 100 US dollars invested since inception Reals 1.37 450 g) Norwegian Krone 1.14 Fund c h) Mexican New Peso 0.95 400 i) Danish Kroner 0.61 350 Index j) Other 1.71 b k) Cash & equivalents 8.40 300 Total 100.00 250 200 Cash value FUND AIM 150 Seeks to provide an attractive rate of return, measured in US dollars, 100 through market, instrument and currency selection. The Fund consists of domestic, international and euromarket fixed income securities of 50 varying maturities denominated in US dollars and other currencies, Nov 89 Jan 99 Mar 08 including emerging markets.

Facts and figures Statistics5 Class I Index INVESTMENT IMPLEMENTATION Launch date November 1989 Alpha (1.27) - Interest rate strategy and country allocation are based on real Fund manager David Germany Beta 0.88 - interest rates, prospective inflation and yield curve slopes. Michael Kushma R squared 0.96 - Proprietary technology is used to manage sensitivity to interest rate Christian Roth Information ratio (0.99) - movements. Location London Tracking error 1.29 - Country and currency exposure are separated; we favour Base currency US dollars Standard deviation 5.45 6.03 higher-yielding currencies. TER Class I4 0.80 At a security level, forward-looking credit analysis calculates fair TER Class A4 1.23 ISIN Class I LU0011983433 value option and credit-adjusted spreads. Total assets $ 200.3 million ISIN Class A LU0073230426 NAV $ 34.56 ISIN Class B LU0073230699 Publication date: 16 April 2008. 1 Launch date of Class I shares was November 1989, Class A shares was February 1997 and Class B shares was June 1997. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Fixed Income Global USD Based sector. 2 On 1 April 2004, the benchmark for the MS SICAV Global Bond Fund was changed from the JPM Global Bond (Traded) Unhedged Index to the Citi WGBI Index. The benchmark for Fund is a blend of the JPM Global Traded Unhedged Index to 31 March 2004 and Citi WGBI Index thereafter. The benchmark is calculated by geometrically chain-linking the monthly returns. 3 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 4 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). 5 Based on monthly observations over last 3 years. Please refer to back cover for important information and risk warnings.

Morgan Stanley SICAV Quarterly Report - March 2008 45 Morgan Stanley SICAV 31 MARCH 2008 Global Convertible Bond (Euro) Fund

RETURNS IN EURO VS. Portfolio characteristics Class I Index MERRILL LYNCH G300 GLOBAL CONVERTIBLE INDEX EURO HEDGED1,2 Fund (net of fees) % Yield to put/Maturity 1.02 1.09 Median conversion premium 30.37 34.82 Peer Group Delta (equity sensitivity) 36.72 42.79 Period Class I Class A Class B Index Ranking Rho (Interest rate sensitivity) (1.77) (1.70) One month (2.59) (2.62) (2.71) (2.48) 13/38 Last three months (5.27) (5.37) (5.61) (6.07) 5/38 Quality distribution (S&P) % YTD 2008 (5.27) (5.37) (5.61) (6.07) 5/38 One year (2.56) (2.99) (3.95) (2.55) 6/35 AAA 1.54 Three years (annualised) 3.58 3.10 2.09 6.72 14/32 AA 2.07 Five years (annualised) 5.25 4.76 3.71 6.97 5/26 A 19.58 Since inception (annualised) 5.25 - - 7.07 - BBB 18.84 BB 1.29 12 months to: B 0.00 March 2008 (2.56) (2.99) (3.95) (2.55) - C 0.00 March 2007 6.38 5.86 4.82 9.62 - D 0.00 March 2006 7.22 6.71 5.67 13.80 - NR 54.34 March 2005 0.14 (0.32) (1.32) (0.41) - Cash and Equivalents 2.34 March 2004 16.05 15.50 14.30 15.72 - Total 100.00

Past performance is no indication of current or future performance. These performance data do not take account of Regional exposure % commissions and costs incurred on the issue and redemption of units. EURO Europe 26.29 North America 18.88 CLASS I SHARES VS. Japan 18.31 MERRILL LYNCH G300 GLOBAL CONVERTIBLE INDEX EURO HEDGED3 Pacific Basin 16.64 Performance of 100 euro invested since inception Non-EURO Europe 6.30 Atlantic Basin 3.74 180 Indian Sub-Continent 2.93 Fund 170 Caribbean 2.55 160 Index Australasia/Oceania 1.02 Central America 1.00 150 Cash and Equivalents 2.34 140 Total 100.00 130

Cash value 120 Industry distribution % 110 a) Diversified Finan Serv 11.59 k 100 a b) Banks 10.88 c) Electrical Compo&Equip 5.76 90 b d) Advertising 5.69 Jul 02 May 05 Mar 08 e) Computers 4.71 j f) Retail 4.57 Facts and figures Statistics5 Class I Index c g) Energy-Alternate Sources 4.42 Launch date July 2002 Alpha (3.14) - d h) Semiconductors 3.72 Fund manager Christian Roth Beta 0.66 - e i) Chemicals 3.67 Davide Basile R squared 0.76 - f j) Other 42.65 Location London Information ratio (1.01) - i h g k) Cash and Equivalents 2.34 Base currency euro Tracking error 3.12 - Total 100.00 TER Class I4 0.88 Standard deviation 4.65 6.18 TER Class A4 1.35 Total assets € 358.2 million ISIN Class I LU0149084047 NAV € 32.02 ISIN Class A LU0149084120 FUND AIM ISIN Class B LU0149084393 Seeks long-term capital appreciation, measured in euro, through investment primarily in convertible bonds issued by companies Publication date: 16 April 2008. organised or operating in either the developed or emerging markets 1 Launch date of Class I, Class A & Class B shares was July 2002. Morningstar's peer group rankings refer to Class A and are which will be denominated in global currencies. taken from the Offshore and International Funds universe, in the Convertible Global sector. 2 On 1 November 2005, the benchmark for the MS SICAV Global Convertible Bond (Euro) Fund was changed from the Merrill INVESTMENT IMPLEMENTATION Lynch G300 Global Convertible Index Local Currency to the Merrill Lynch G300 Global Convertible Index Euro Hedged. The benchmark for Fund is a blend of the Merrill Lynch G300 Global Convertible Index Local Currency to 31 October 2005 and Top-down approach used to determine target equity sensitivity. Merrill Lynch G300 Global Convertible Index Euro Hedged thereafter. The benchmark is calculated by geometrically chain-linking the monthly returns. Fundamental analysis undertaken to assess underlying common 3 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. stocks and credit quality of convertibles. Risk management focuses on sensitivity to equities, credit spreads, 4 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). interest rates and option values and also ensures adequate 5 Based on monthly observations over last 3 years. diversification. Please refer to back cover for important information and risk warnings paragraph (1) relating to emerging country securities.

46 Morgan Stanley SICAV Quarterly Report - March 2008 Morgan Stanley SICAV 31 MARCH 2008 Global Convertible Bond (USD) Fund

RETURNS IN US DOLLARS VS. Portfolio characteristics Class I Index MERRILL LYNCH G300 GLOBAL CONVERTIBLE INDEX USD HEDGED1,2 Fund (net of fees) % Yield to put/Maturity 1.02 1.09 Median conversion premium 29.11 34.82 Peer Group Delta (equity sensitivity) 38.88 42.79 Period Class I Class A Class B Index Ranking Rho (Interest rate sensitivity) (1.93) (1.70) One month (2.77) (2.81) (2.88) (2.70) 34/38 Last three months (5.29) (5.39) (5.61) (6.49) 34/38 Quality distribution (S&P) % YTD 2008 (5.29) (5.39) (5.61) (6.49) 34/38 One year (1.60) (2.08) (3.03) (2.74) 33/35 AAA 2.14 Three years (annualised) 5.31 4.83 3.80 7.57 30/32 AA 2.15 Five years (annualised) 6.27 5.79 4.74 7.48 25/26 A 19.68 Since inception (annualised) 6.64 - - 7.52 - BBB 18.54 12 months to: BB 1.35 March 2008 (1.60) (2.08) (3.03) (2.74) - B 0.00 March 2007 9.46 8.98 7.90 11.58 - C 0.00 March 2006 8.43 7.94 6.89 14.69 - D 0.00 March 2005 0.17 (0.34) (1.32) (0.41) - NR 54.60 March 2004 15.85 15.43 14.26 15.72 - Cash and Equivalents 1.54 Total 100.00 Past performance is no indication of current or future performance. These performance data do not take account of commissions and costs incurred on the issue and redemption of units. Regional exposure %

CLASS I SHARES VS. EURO Europe 27.94 MERRILL LYNCH G300 GLOBAL CONVERTIBLE INDEX USD HEDGED3 Japan 18.75 Performance of 100 US dollars invested since inception North America 18.47 Pacific Basin 16.13 180 Non-EURO Europe 6.28 170 Fund Atlantic Basin 3.31 Indian Sub-Continent 3.05 160 Index Caribbean 2.58 150 Central America 1.04 140 Australasia/Oceania 0.91 Cash and Equivalents 1.54 130 Total 100.00

Cash value 120 110 Industry distribution %

100 a) Diversified Finan Serv 11.94 k 90 a b) Banks 11.73 Jul 02 May 05 Mar 08 c) Electrical Compo&Equip 5.75 d) Advertising 5.58 b e) Computers 4.75 Facts and figures Statistics5 Class I Index j f) Energy-Alternate Launch date July 2002 Alpha (2.26) - c Sources 4.46 Fund manager Christian Roth Beta 0.66 - g) Semiconductors 4.02 Davide Basile R squared 0.78 - d h) Retail 3.95 i) Chemicals 3.65 Location London Information ratio (0.73) - e Base currency US dollars Tracking error 3.11 - f j) Other 42.63 TER Class I4 1.08 Standard deviation 4.71 6.34 i h g k) Cash and Equivalents 1.54 TER Class A4 1.55 Total 100.00 Total assets $ 64.4 million ISIN Class I LU0149084476 NAV $ 34.37 ISIN Class A LU0149084633 ISIN Class B LU0149084989 FUND AIM Seeks long-term capital appreciation, measured in US dollars, through Publication date: 16 April 2008. investment primarily in convertible bonds issued by companies 1 Launch date of Class I, Class A & Class B shares was July 2002. Morningstar's peer group rankings refer to Class organised or operating in either the developed or emerging markets A and are taken from the Offshore and International Funds universe, in the Convertible Global sector. which will be denominated in global currencies. 2 On 1 November 2005, the benchmark for the MS SICAV Global Convertible Bond (USD) Fund was changed from the Merrill Lynch G300 Global Convertible Index Local Currency to the Merrill Lynch G300 Global Convertible Index USD Hedged. The benchmark for Fund is a blend of the Merrill Lynch G300 Global Convertible Index Local INVESTMENT IMPLEMENTATION Currency to 31 October 2005 and Merrill Lynch G300 Global Convertible Index USD Hedged thereafter. The Top-down approach used to determine target equity sensitivity. benchmark is calculated by geometrically chain-linking the monthly returns. Fundamental analysis undertaken to assess underlying common 3 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. stocks and credit quality of convertibles. 4 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and Risk management focuses on sensitivity to equities, credit spreads, expressed as a percentage of average net assets for the six month period (or since inception if fund launched interest rates and option values and also ensures adequate within this period). diversification. 5 Based on monthly observations over last 3 years. Please refer to back cover for important information and risk warnings paragraph (1) relating to emerging country securities.

Morgan Stanley SICAV Quarterly Report - March 2008 47 Morgan Stanley SICAV 31 MARCH 2008 Short Maturity Euro Bond Fund

1,2 RETURNS IN EURO VS. LEHMAN EURO-AGGREGATE: TREASURY 1-3 YEARS INDEX Portfolio characteristics Class I Index Fund (net of fees) % Duration 1.84 1.71 Peer Group Average maturity 3.39 1.85 Period Class I Class A Class B Index Ranking Average yield to maturity 4.37 3.68 One month (0.70) (0.68) (0.81) (0.33) 6/9 Number of holdings 91 68 Last three months 1.05 0.92 0.70 1.57 3/9 YTD 2008 1.05 0.92 0.70 1.57 3/9 Duration distribution % One year 2.86 2.40 1.40 4.68 5/9 Three years (annualised) 1.91 1.49 0.49 2.86 6/9 Less than 1 year 9.96 Five years (annualised) 2.16 1.74 0.73 2.93 5/9 1 to 3 years 75.31 Ten years (annualised) 3.14 2.70 - 3.97 4/4 3 to 5 years 11.86 Since inception (annualised) 4.69 - - 5.41 - 5 to 7 years 0.86 7 to 10 years 0.06 12 months to: Cash & equivalents 1.95 March 2008 2.86 2.40 1.40 4.68 - Total 100.00 March 2007 2.00 1.61 0.58 2.43 - March 2006 0.87 0.48 (0.51) 1.50 - Geographic distribution of issuers % March 2005 1.94 1.52 0.51 2.49 - March 2004 3.16 2.68 1.70 3.60 - a) France 35.40 j k g h i b) Germany 16.88 f c) Netherlands 12.46 Past performance is no indication of current or future performance. These performance data do not take account of d) United Kingdom 11.83 commissions and costs incurred on the issue and redemption of units. a e e) United States 9.30 CLASS I SHARES VS. LEHMAN EURO-AGGREGATE: TREASURY 1-3 YEARS INDEX3 f) Australia 5.61 g) Ireland 2.04 Performance of 100 euro invested since inception d h) Spain 1.44 220 i) Italy 1.38 Fund j) Other 1.72 200 k) Cash & equivalents 1.95 c b Index Total 100.00 180

160 FUND AIM 140 Seeks to provide an attractive rate of return, measured in euro, Cash value 120 through market and instrument selection. This objective will be achieved by investing in high quality fixed income securities 100 denominated in the euro. The Fund will invest primarily, in order to reduce volatility, in individual securities with maturity dates having a 80 maximum of five years. Aug 94 Jun 01 Mar 08 INVESTMENT IMPLEMENTATION Facts and figures Statistics5 Class I Index Interest rate strategy and country allocation are based on real Launch date August 1994 Alpha (0.95) - interest rates, prospective inflation and yield curve slopes. Fund manager Michael Kushma Beta 0.94 - Proprietary technology is used to manage sensitivity to interest rate Christian Roth R squared 0.87 - movements. Location London Information ratio (2.28) - Country allocation is determined by comparing real interest rates, Base currency euro Tracking error 0.42 - yield curves and inflation prospects. TER Class I4 0.76 Standard deviation 1.14 1.13 At a security level, forward-looking credit analysis calculates fair TER Class A4 1.18 value option and credit-adjusted spreads. Total assets € 285.7 million ISIN Class I LU0052620894 NAV € 18.32 ISIN Class A LU0073235904 Publication date: 16 April 2008. ISIN Class B LU0073236118 1 Launch date of Class I shares was August 1994, Class A shares was February 1997 and Class B shares was October 1998. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Short Term Bond Europe sector. 2 On 1 May 2007, the benchmark for the MS SICAV Short Maturity Euro Bond Fund was changed from the MSCI EMU Sovereign Debt 1-3 Yrs Index to the Lehman Euro-Aggregate: Treasury 1-3 Yrs Index. The benchmark for Fund is a blend of the MSCI EMU Sovereign Debt 1-3 Yrs Index to 30 April 2007 and Lehman Euro-Aggregate: Treasury 1-3 Yrs Index thereafter. The benchmark is calculated by geometrically chain-linking the monthly returns. 3 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 4 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). 5 Based on monthly observations over last 3 years. Please refer to back cover for important information and risk warnings.

48 Morgan Stanley SICAV Quarterly Report - March 2008 Morgan Stanley SICAV 31 MARCH 2008 US Bond Fund

1 RETURNS IN US DOLLARS VS. LEHMAN BROTHERS AGGREGATE INDEX Portfolio characteristics Class I Index Fund (net of fees) % Duration 4.50 4.38 Peer Group Interest rate sensitivity 4.32 4.00 Period Class I Class A Class B Index Ranking Average yield to maturity 9.16 4.55 One month (5.90) (5.96) (6.01) 0.34 131/133 Number of holdings 402 9267 Last three months (7.16) (7.32) (7.51) 2.17 131/133 YTD 2008 (7.16) (7.32) (7.51) 2.17 131/133 Quality distribution (S&P) % One year (3.67) (4.11) (5.04) 7.67 129/132 Three years (annualised) 1.50 1.06 0.05 5.48 120/123 TSY 0.10 Five years (annualised) 2.14 1.70 0.70 4.58 96/102 AGY 37.10 Ten years (annualised) 4.22 3.78 2.75 6.04 60/65 AAA 16.70 Since inception (annualised) 5.03 - - 6.47 - AA 3.70 A 7.30 12 months to: BBB 7.10 March 2008 (3.67) (4.11) (5.04) 7.67 - BB 0.00 March 2007 5.78 5.37 4.29 6.59 - B 0.00 March 2006 2.62 2.16 1.14 2.26 - CCC or below 0.00 March 2005 1.93 1.53 0.55 1.15 - Not available 0.10 March 2004 4.29 3.82 2.80 5.40 - Cash and Equivalents 27.90 Total 100.00 Past performance is no indication of current or future performance. These performance data do not take account of commissions and costs incurred on the issue and redemption of units. Sector distribution %

CLASS I SHARES VS. LEHMAN BROTHERS AGGREGATE INDEX2 a) Mortgages 50.80 b) Credits 17.20 Performance of 100 US dollars invested since inception c) ABS/CMBS 4.10 d 280 Governments 0.00 d) Cash and Equivalents 27.90 260 Fund Total 100.00 240 Index a 220 c 200 180 160 b Cash value 140 120 100 FUND AIM 80 Seeks to provide an attractive rate of return, measured in US dollars, Aug 92 Jun 00 Mar 08 through investment primarily in US dollar denominated fixed income securities issued by governments, agencies and corporations either in Facts and figures Statistics4 Class I Index the US domestic markets or in the Euromarkets. The Fund may also invest on an ancillary basis in foreign fixed income securities, including Launch date August 1992 Alpha (3.98) - emerging markets fixed income securities. Fund manager Scott Richard Beta 0.88 - Location Philadelphia R squared 0.27 - INVESTMENT IMPLEMENTATION Base currency US dollars Information ratio (0.97) - TER Class I3 0.78 Tracking error 4.09 - Value-oriented process is based on assessment of implied market TER Class A3 1.20 Standard deviation 4.76 2.79 forecasts. Interest rate, yield curve, corporate credit, and Total assets $ 127.3 million mortgage prepayment exposures are actively managed. NAV $ 21.52 ISIN Class I LU0034265727 Comprehensive risk budgeting allows calculation and monitoring of ISIN Class A LU0073231580 amount of return per unit of risk. ISIN Class B LU0073231663 Team-based investment approach is supported by dedicated interest rate, credit and mortgage research teams.

Publication date: 16 April 2008. 1 Launch date of Class I shares was August 1992, Class A shares was February 1997 and Class B shares was September 1997. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Fixed Income USD sector. 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. 3 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). 4 Based on monthly observations over last 3 years. Please refer to back cover for important information and risk warnings.

Morgan Stanley SICAV Quarterly Report - March 2008 49 Morgan Stanley SICAV 31 MARCH 2008 US Dollar Short Duration Fund

1 RETURNS IN US DOLLARS VS. 3 MONTH US LIBOR INDEX Portfolio characteristics5 Class I Index Fund (net of fees) % Duration 0.21 n/a Peer Group Average maturity 0.71 n/a Period Class I Class A Class B Index Ranking Average yield to maturity 3.20 n/a One month 0.09 0.09 (0.09) 0.29 19/47 Average quality AAA n/a Last three months 0.53 0.36 0.09 0.61 26/47 YTD 2008 0.53 0.36 0.09 0.61 26/47 Quality distribution (S&P) % One year 3.14 2.75 1.63 4.78 30/46 Three years (annualised) 3.58 3.13 2.10 4.75 26/39 TSY 0.03 Five years (annualised) 2.57 2.13 1.11 3.46 26/34 AGY 26.48 Since inception (annualised) 2.47 - - 3.23 - AAA 61.73 AA 5.62 12 months to: A 5.78 March 2008 3.14 2.75 1.63 4.78 - BBB+ 0.36 March 2007 4.90 4.31 3.27 5.49 - BBB 0.00 March 2006 2.71 2.35 1.41 3.98 - BB 0.00 March 2005 1.27 0.79 (0.20) 1.91 - B 0.00 March 2004 0.89 0.50 (0.50) 1.21 - CCC or below 0.00 Not available 0.00 Past performance is no indication of current or future performance. These performance data do not take account of Total 100.00 commissions and costs incurred on the issue and redemption of units. Sector distribution % CLASS I SHARES VS. 3 MONTH US LIBOR INDEX2 a) Government 50.32 Performance of 100 US dollars invested since inception e f d b) Mortgage 26.48 130 c) Asset Backed 10.91 d) Corporate 6.88 Fund c 125 e) Commercial Paper 5.19 120 Index f) Other 0.22 a Total 100.00 115 110 b 105 Cash value 100 95 90 FUND AIM Jul 02 May 05 Mar 08 Seeks to maximise yield and total return primarily by investing in high quality US dollar denominated fixed income securities issued by Facts and figures Statistics4 Class I Index governments, agencies and corporations. The Fund will be managed to maintain a duration of up to 12 months at all times. The Fund may Launch date July 2002 Alpha (1.17) - also hold up to 49% of its net assets in cash and cash equivalents. Fund manager Paul O'Brien Beta 0.84 - William Lawrence R squared 0.35 - INVESTMENT IMPLEMENTATION Location Philadelphia/London Information ratio (2.79) - Base currency US dollars Tracking error 0.42 - Spreads on non-treasury sectors are compared against yields on TER Class I3 0.40 Standard deviation 0.51 0.36 comparable treasury securities to determine relative value. The TER Class A3 0.82 yield spread over treasuries is analysed against historical yield Total assets $ 21.1 million ISIN Class I LU0149961251 spreads. NAV $ 11.48 ISIN Class A LU0149960790 Securities are broken down into risk components and yields are ISIN Class B LU0149961418 adjusted to reflect the risk element. The contribution of each individual security to the risk/return profile of the portfolio is Publication date: 16 April 2008. evaluated. Aims to maintain a minimum average credit quality of AA- (Standard 1 Launch date of Class I, Class A & Class B shares was July 2002. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Short Term Bond USD sector. & Poor's) or Aa3 (Moody's). 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. The Fund is rated AAf-S1+ by Standard & Poor's. 3 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). 4 Based on monthly observations over last 3 years. 5 No Index data is available at this time. Please refer to back cover for important information and risk warnings.

50 Morgan Stanley SICAV Quarterly Report - March 2008 Morgan Stanley SICAV 31 MARCH 2008 Euro Liquidity Fund

1 RETURNS IN EURO VS. 1 MONTH EURO LIBID INDEX Portfolio characteristics4 Class I Index Fund (net of fees) % Average Quality (S&P) A1+ n/a Peer Group Average Maturity (days) 28.28 n/a Period Class I Class A Class B Index Ranking 7-day yield 4.43 n/a One month 0.32 0.30 0.24 0.36 49/181 Number of holdings 82 n/a Last three months 1.00 0.96 0.77 1.04 48/181 YTD 2008 1.00 0.96 0.77 1.04 48/181 Asset breakdown % One year 3.92 3.76 2.98 4.24 35/174 Three years (annualised) 2.85 2.69 1.93 3.19 35/147 a) European Commercial Five years (annualised) 2.43 2.26 1.50 2.72 43/133 d Paper 46.44 Since inception (annualised) 2.93 - - 3.14 - b) Mid-Term Notes 26.20 c) Time Deposit 17.96 12 months to: c d) CD's Cash Deposits 9.40 March 2008 3.92 3.76 2.98 4.24 - a Total 100.00 March 2007 2.83 2.67 1.90 3.21 - March 2006 1.82 1.66 0.90 2.14 - March 2005 1.75 1.58 0.82 1.99 - March 2004 1.82 1.67 0.91 2.02 - b Past performance is no indication of current or future performance. These performance data do not take account of commissions and costs incurred on the issue and redemption of units.

CLASS I SHARES VS. 1 MONTH EURO LIBID INDEX2 FUND AIM Performance of 100 euro invested since inception Seeks to provide liquidity and high current income, to the extent consistent with the preservation of capital, primarily by investing in 140 high quality short-term transferable debt securities that are Fund denominated in euro, provided that, at the time of acquisition, their 130 Index initial or residual maturity does not exceed 397 days. The Fund may also hold up to 49% of its net assets in cash and cash equivalents. 120 INVESTMENT IMPLEMENTATION 110 Average maturity of less than 50 days is maintained. Investments Cash value include highly liquid short-term securities, such as commercial paper, certificates of deposit and government bills which mature 100 within one year. Securities are chosen for the purposes of maximising current 90 income. Jan 00 Feb 04 Mar 08 The Fund is rated AAAm by Standard & Poor's and Aaa-MR1+ by Moody's. Facts and figures ISIN Class I LU0106252116 Publication date: 16 April 2008. Launch date January 2000 ISIN Class A LU0106251654 1 Launch date of Class I, Class A & Class B shares was January 2000. Fund manager Corinne Lewis-Reynier ISIN Class B LU0106251811 Morningstar's peer group rankings refer to Class A and are taken from the Location London Offshore and International Funds universe, in the Money Market EUR sector. Base currency euro 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of TER Class I3 0.45 fees. 3 TER Class A 0.60 3 Total expenses charged to share class open as at 31 December 2007, Total assets € 461.5 million calculated net of any fee waivers and expressed as a percentage of average NAV € 12.65 net assets for the six month period (or since inception if fund launched within this period). 4 No Index data is available at this time. Please refer to back cover for important information and risk warnings.

Morgan Stanley SICAV Quarterly Report - March 2008 51 Morgan Stanley SICAV 31 MARCH 2008 US Dollar Liquidity Fund

1 RETURNS IN US DOLLARS VS. CITI 3 MONTH US T-BILL INDEX Portfolio characteristics Class I Index Fund (net of fees) % Average Quality (S&P) A1+ AAA Peer Group Average Maturity (days) 53.21 25.00 Period Class I Class A Class B Index Ranking 7-day yield 2.86 n/a One month 0.27 0.24 0.18 0.20 30/126 Number of holdings 88 n/a Last three months 0.94 0.87 0.70 0.71 42/126 YTD 2008 0.94 0.87 0.70 0.71 42/126 Asset breakdown % One year 4.75 4.37 4.15 4.32 44/125 Three years (annualised) 4.38 3.98 3.91 4.28 51/117 a) Domestic Commercial Five years (annualised) 3.03 2.63 2.58 3.07 64/110 e Paper DCP 44.55 d Since inception (annualised) 3.33 - - 3.41 - b) Certificates of Deposit DCD 26.22 12 months to: c) Repurchase Agreement March 2008 4.75 4.37 4.15 4.32 - c a REPO 13.94 March 2007 4.98 4.57 4.56 5.01 - d) Corporate Floating-Rate March 2006 3.43 3.01 3.01 3.51 - CFR 11.70 March 2005 1.35 0.95 0.94 1.57 - e) Disc Notes 3.59 March 2004 0.72 0.32 0.32 1.01 - Total 100.00 b Past performance is no indication of current or future performance. These performance data do not take account of commissions and costs incurred on the issue and redemption of units.

CLASS I SHARES VS. CITI 3 MONTH US T-BILL INDEX2 FUND AIM Performance of 100 US dollars invested since inception Seeks to provide liquidity and high current income, to the extent consistent with the preservation of capital, primarily by investing in 145 high quality short-term transferable debt securities that are Fund 140 denominated in US dollars, provided that, at the time of acquisition, 135 Index their initial or residual maturity does not exceed 397 days. The Fund 130 may also hold up to 49% of its net assets in cash and cash 125 equivalents. 120 115 INVESTMENT IMPLEMENTATION Cash value 110 Average maturity of less than 60 days is maintained. Investments include highly liquid short-term securities, such as commercial 105 paper, certificates of deposit and government bills which mature 100 within one year. 95 Securities are chosen for the purposes of maximising current Jun 99 Nov 03 Mar 08 income. The Fund is rated AAAm by Standard & Poor's and Aaa-MR1+ by Facts and figures Moody's. ISIN Class I LU0097977770 Launch date3 June 1999 ISIN Class A LU0097977184 Publication date: 16 April 2008. Fund manager Dale Albright ISIN Class B LU0097978158 1 Launch date of Class I shares was June 1999, Class A shares was July 1999 Jonas Kolk and Class B shares was September 1999. Morningstar's peer group rankings Michael Davey refer to Class A and are taken from the Offshore and International Funds Elsa Doyle universe, in the Money Market USD sector. Location New York 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of Base currency US dollars fees. TER Class I4 0.45 3 Inception of Class IX shares was March 1998 and of Class I shares was June TER Class A4 0.76 1999. Total assets $ 591.8 million 4 Total expenses charged to share class open as at 31 December 2007, NAV $ 13.33 calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within this period). Please refer to back cover for important information and risk warnings.

52 Morgan Stanley SICAV Quarterly Report - March 2008 Morgan Stanley SICAV 31 MARCH 2008 Global Diversified (Euro) Fund

RETURNS IN EURO VS. 50% MSCI WORLD INDEX / AS OF 1 MARCH 2008 1 50% JPM GLOBAL GOVERNMENT BOND INDEX Equity Sectors % Fund (net of fees) % Financials 5.45 Peer Group Industrials 6.02 Period Class I Class A Class B Index Ranking Information Technology 4.29 One month (4.78) (4.82) (4.89) (3.15) 122/145 Consumer Staples 4.07 Last three months (8.76) (8.89) (9.13) (7.72) 95/143 Healthcare 4.31 YTD 2008 (8.76) (8.89) (9.13) (7.72) 95/143 Consumer Discretionary 4.43 One year (8.67) (9.22) (10.11) (9.18) 86/136 Materials 4.96 Three years (annualised) 1.82 1.24 0.23 1.68 75/95 Energy 3.62 Five years (annualised) 5.73 5.13 4.09 4.05 38/62 Telecommunications 2.16 Since inception (annualised) 2.36 - - (0.47) - Utilities 2.21 Total 41.52 12 months to: Fixed Income Sectors % March 2008 (8.67) (9.22) (10.11) (9.18) - March 2007 2.30 1.76 0.74 1.43 - Government 16.62 March 2006 12.98 12.33 11.21 14.13 - Supranational 6.91 March 2005 5.97 5.34 4.30 2.09 - Agency 0.00 March 2004 18.13 17.52 16.34 13.64 - Index Linked 1.01 Corporate 6.23 Past performance is no indication of current or future performance. These performance data do not take account of Total 30.77 commissions and costs incurred on the issue and redemption of units. Convertible Securities 2.85 Cash and Equivalents 5.71 CLASS I SHARES VS. 50% MSCI WORLD INDEX / Commodities 8.85 2 50% JPM GLOBAL GOVERNMENT BOND INDEX Hedge Fund 10.30 Performance of 100 euro invested since inception Total 100.00 140 Fund Currency % 130 Index a) EUR 69.34 g 120 c def b) USD 24.14 c) HKD 2.25 110 d) AUD 1.08 100 b e) SGD 1.08

Cash value f) NZD 1.01 90 g) Other 1.10 Total 100.00 80 a 70 Dec 01 Feb 05 Mar 08

Facts and figures Statistics4 Class I Index

Launch date December 2001 Alpha 0.14 - FUND AIM Fund manager Chris Godding Beta 0.90 - Seeks long-term capital appreciation, measured in euro, by investing Location London R squared 0.62 - in a globally diversified portfolio of equity and fixed income securities. Base currency euro Information ratio 0.03 - The Fund may invest from 30% to 80% of the net assets in equities TER Class I3 0.92 Tracking error 4.22 - and convertible securities and from 20% to 70% of the net assets in TER Class A3 1.49 Standard deviation 6.78 5.91 fixed income securities. The Fund may hold up to 30% of its net Total assets € 65.5 million assets in cash and cash equivalents, as market conditions dictate. NAV € 28.86 ISIN Class I LU0137771878 ISIN Class A LU0137772256 INVESTMENT IMPLEMENTATION ISIN Class B LU0137772686 Top-down approach for creating the asset allocation framework is Publication date: 16 April 2008. combined with bottom-up security selection. Analysis of the political and macroeconomic backdrop within the 1 Launch date of Class I & Class A shares was December 2001, Class B shares was May 2002. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Asset global market along with a study of each region/country Allocation Global Flexible sector. establishes asset allocation framework. 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. Security selection uses proprietary and non-proprietary research and fundamental analysis to assess all investment ideas for 3 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched suitability and risk. within this period). 4 Based on monthly observations over last 3 years. Please refer to back cover for important information and risk warnings.

Morgan Stanley SICAV Quarterly Report - March 2008 53 Morgan Stanley SICAV 31 MARCH 2008 Global Diversified (USD) Fund

RETURNS IN US DOLLARS VS. 50% MSCI WORLD INDEX / AS OF 1 MARCH 2008 1 50% JPM GLOBAL GOVERNMENT BOND INDEX Equity Sectors % Fund (net of fees) % Financials 5.30 Peer Group Materials 4.58 Period Class I Class A Class B Index Ranking Industrials 5.79 One month (3.59) (3.64) (3.72) 1.09 70/77 Health Care 3.85 Last three months (7.25) (7.39) (7.60) 0.02 66/77 Energy 3.48 YTD 2008 (7.25) (7.39) (7.60) 0.02 66/77 Information Technology 4.41 One year (4.17) (4.71) (5.64) 8.11 64/77 Consumer Staples 3.79 Three years (annualised) 4.31 3.69 2.70 8.63 50/54 Consumer Discretionary 4.81 Five years (annualised) 9.11 8.48 7.43 12.11 22/30 Telecommunication Services 2.24 Since inception (annualised) 5.74 - - 9.14 - Utilities 2.18 Total 40.43 12 months to: Fixed Income Sectors % March 2008 (4.17) (4.71) (5.64) 8.11 - March 2007 7.25 6.56 5.58 11.57 - Government 20.26 March 2006 10.41 9.78 8.71 6.27 - Supranational 2.19 March 2005 6.66 6.05 5.00 7.97 - Agency 0.00 March 2004 27.76 27.07 25.81 27.98 - Index Linked 0.00 Corporate 7.78 Past performance is no indication of current or future performance. These performance data do not take account of Total 30.23 commissions and costs incurred on the issue and redemption of units. Convertible Securities 2.27 Cash and Equivalents 10.38 CLASS I SHARES VS. 50% MSCI WORLD INDEX / Commodities 8.63 2 50% JPM GLOBAL GOVERNMENT BOND INDEX Hedge Fund 8.06 Performance of 100 US dollars invested since inception Total 100.00 200 Fund Currency % 180 Index a) USD 94.58 bc d 160 b) HKD 1.98 c) SGD 1.07 140 d) Other 2.37 Total 100.00

Cash value 120

100

80 Dec 01 Feb 05 Mar 08 a

Facts and figures Statistics4 Class I Index

Launch date December 2001 Alpha (4.32) - FUND AIM Fund manager Chris Godding Beta 0.82 - Seeks long-term capital appreciation, measured in US dollars, by Location London R squared 0.39 - investing in a globally diversified portfolio of equity and fixed income Base currency US dollars Information ratio (0.89) - securities. The Fund may invest from 30% to 80% of the net assets in TER Class I3 1.30 Tracking error 4.83 - equities and convertible securities and from 20% to 70% of the net TER Class A3 1.87 Standard deviation 6.07 4.58 assets in fixed income securities. The Fund may hold up to 30% of its Total assets $ 15.8 million net assets in cash and cash equivalents, as market conditions dictate. NAV $ 35.43 ISIN Class I LU0137767926 ISIN Class A LU0137770557 INVESTMENT IMPLEMENTATION ISIN Class B LU0137771100 Top-down approach for creating the asset allocation framework is Publication date: 16 April 2008. combined with bottom-up security selection. Analysis of the political and macroeconomic backdrop within the 1 Launch date of Class I & Class A shares was December 2001, Class B shares was July 2002. Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Asset global market along with a study of each region/country Allocation Global Flexible sector. establishes asset allocation framework. 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of fees. Security selection uses proprietary and non-proprietary research and fundamental analysis to assess all investment ideas for 3 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched suitability and risk. within this period). 4 Based on monthly observations over last 3 years. Please refer to back cover for important information and risk warnings.

54 Morgan Stanley SICAV Quarterly Report - March 2008 Morgan Stanley SICAV 31 MARCH 2008 Commodities Alpha Plus Fund

FUND AIM INVESTMENT UNIVERSE - GSLE CONSTITUENTS Seeks to generate a return in excess of the S&P GSCI™ Light Energy Index by using one or more Crude Oil Brent Crude Oil derivatives to gain exposure to this index, including swaps, forwards, options and other contingent RBOB Gas Heating Oil liability investments. GasOil Natural Gas Aluminium Copper INVESTMENT IMPLEMENTATION Lead Nickel Zinc Gold Disciplined, actively managed and systematic approach utilising quantitative models to construct a Silver Wheat portfolio that maintains constant market exposure whilst aiming to add outperformance through Red Wheat Corn the use of active alpha strategies. Soybeans Cotton Alpha generating strategies focus on several key themes including backwardation, momentum and Sugar Coffee term structure. Cocoa Live Cattle Fund gains exposure to the Commodities asset class through the use of total return swaps. Feeder Cattle Lean Hogs

Facts and figures

Launch date June 2007 ISIN Class I LU0299411578 Publication date: 16 April 2008. Fund manager Chris Callan ISIN Class A LU0299406735 1 Total expenses charged to share class open as at 31 December 2007, Arunabh Mukherjee ISIN Class B LU0299415991 calculated net of any fee waivers and expressed as a percentage of average net assets for the six month period (or since inception if fund launched within Deepak Baghla ISIN Class IH LU0299411909 this period). Location London ISIN Class AH LU0299411735 Please refer to back cover for important information and risk warnings paragraph Base currency US dollars (5) relating to derivative instruments. TER Class I1 1.00 TER Class A1 1.55 Benchmark S&P GSCI™ Light Energy Index Total assets $ 199.5 million NAV $ 32.36

HOLDINGS (ASSET ALLOCATION) Overweights Underweights Aluminium Brent Crude Oil Coffee Cocoa Copper Corn Crude Oil Cotton Feeder Cattle GasOil Gold Lean Hogs Heating Oil Natural Gas Lead Nickel Live Cattle Silver Red Wheat Wheat Soybeans Zinc Sugar Unleaded Gas

Morgan Stanley SICAV Quarterly Report - March 2008 55 Morgan Stanley SICAV 31 MARCH 2008 FX Alpha Plus RC 200 (Euro) Fund

RETURNS IN EURO VS. EURO OVERNIGHT INDEX AVERAGE (EONIA)1 INVESTMENT UNIVERSE Fund (net of fees) % The Funds will invest in a diversified portfolio of spot, forward and Peer Group non-deliverable currency forwards. Each currency invested in may Period Class I Class A Class B Index Ranking represent either a long or short position in relative US Dollars and converted back to the Funds’ reference currency, as appropriate. One month 0.04 0.04 (0.08) 0.34 - There is no physical settlement when a short selling strategy is Last three months (0.15) (0.23) (0.47) 1.01 - deployed with any net amounts being paid. YTD 2008 (0.15) (0.23) (0.47) 1.01 - • G10: AUD, CAD, CHF, EUR, GBP, JPY, NOK, NZD, SEK One year 2.83 2.47 1.43 4.14 - • Latin America: ARS, BRL, CLP, COP, MXN Since inception (annualised) 3.14 - - 4.11 - • EMEA: CZK, HUF, ILS, PLN, RUB, SKK, TRY, ZAR • Asia Ex-Japan: IDR, KRW, PHP, SGD, THB, TWD 12 months to: March 2008 2.83 2.47 1.43 4.14 - The Funds may also invest in the units of other UCITS or undertakings for collective investment, deposits, fixed or floating rate instruments Past performance is no indication of current or future performance. These performance data do not take account of (including but not limited to commercial paper), floating rate notes, commissions and costs incurred on the issue and redemption of units. certificates of deposit, debentures, asset backed securities and government or corporate bonds, cash and cash equivalents. CLASS I SHARES VS. EURO OVERNIGHT INDEX AVERAGE (EONIA)2 Performance of 100 euro invested since inception FUND AIM 110 Seeks to generate a risk controlled (“RC”) return, measured in euros, Fund that has a low level of correlation to other asset classes by investing 108 in currency pairs. The Investment Adviser’s systematic currency 106 Index selection process employs computer modelling within a disciplined risk controlled framework and seeks to profit from changes in the 104 relative valuations of currency pairs. 102 100 INVESTMENT IMPLEMENTATION Cash value Disciplined risk-controlled approach utilising quantitative models to 98 construct optimised portfolios that target explicit Value at Risk 96 (VaR). Systematic currency selection process employs computer 94 modelling within a disciplined risk controlled framework and seeks Feb 07 Sep 07 Mar 08 to profit from changes in the relative valuations of currency pairs. The end result is a synthetic portfolio which aims to produce high Facts and figures Statistics Class I Index yield and stable volatility. Launch date February 2007 Alpha - - Fund manager Chris Callan Beta - - Publication date: 16 April 2008. Arunabh Mukherjee R squared - - 1 Launch date of Class I, Class A & Class B shares was February 2007. Location London Information ratio - - Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Derivatives sector. Base currency euro Tracking error - - 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of TER Class I3 0.70 Standard deviation - - fees. TER Class A3 1.11 3 Total expenses charged to share class open as at 31 December 2007, Total assets € 313.6 million ISIN Class I LU0283945516 calculated net of any fee waivers and expressed as a percentage of average € NAV 25.83 ISIN Class A LU0283945276 net assets for the six month period (or since inception if fund launched within Number of stop-outs4 4 ISIN Class B LU0283945359 this period). Number of holdings 26 4 Number of stop-outs since inception. The Fund has in place an ex-ante stop loss target aiming to provide the portfolio with downside risk protection. The CURRENCY FORWARDS stop loss is monitored on a daily basis, based on our ex-ante VaR level of 2% and a 1% probability of occurrence. Weighting (asset allocation) Please refer to back cover for important information and risk warnings paragraph Short positions Long positions (5) relating to derivative instruments. AUD - Australia ($) CLP - Chile (Peso) BRL - Brazil (Real) COP - Colombia (Peso) CAD - Canada ($) CZK - Czech Republic (Koruna) CHF - Switzerland (Franc) GBP - Britain (Pound) EUR - Euroland (Euro) IDR - Indonesia (Rupiah) HUF - Hungary (Forint) ILS - Israel (Shekel) NOK - Norway (Krone) JPY - Japan (Yen) NZD - New Zealand ($) KRW - South Korea (Won) PHP - Philippines (Peso) MXN - Mexico (Peso) SEK - Sweden (Krona) PLN - Poland (Zloty) SGD - Singapore ($) RUB - Russia (Ruble) SKK - Slovakia (Koruna) TRY - Turkey (Lira) TWD - Taiwan ($) ZAR - South Africa (Rand)

56 Morgan Stanley SICAV Quarterly Report - March 2008 Morgan Stanley SICAV 31 MARCH 2008 FX Alpha Plus RC 200 (Sterling) Fund

FUND AIM INVESTMENT UNIVERSE Seeks to generate a risk controlled (“RC”) return, measured in sterling, that has a low level of The Funds will invest in a diversified portfolio of spot, forward and correlation to other asset classes by investing in currency pairs. The Investment Adviser’s systematic non-deliverable currency forwards. Each currency invested in may currency selection process employs computer modelling within a disciplined risk controlled represent either a long or short position in relative US Dollars and framework and seeks to profit from changes in the relative valuations of currency pairs. converted back to the Funds’ reference currency, as appropriate. There is no physical settlement when a short selling strategy is INVESTMENT IMPLEMENTATION deployed with any net amounts being paid. • G10: AUD, CAD, CHF, EUR, GBP, JPY, NOK, NZD, SEK Disciplined risk-controlled approach utilising quantitative models to construct optimised portfolios • Latin America: ARS, BRL, CLP, COP, MXN that target explicit Value at Risk (VaR). • EMEA: CZK, HUF, ILS, PLN, RUB, SKK, TRY, ZAR Systematic currency selection process employs computer modelling within a disciplined risk • Asia Ex-Japan: IDR, KRW, PHP, SGD, THB, TWD controlled framework and seeks to profit from changes in the relative valuations of currency pairs. The end result is a synthetic portfolio which aims to produce high yield and stable volatility. The Funds may also invest in the units of other UCITS or undertakings for collective investment, deposits, fixed or floating rate instruments Facts and figures (including but not limited to commercial paper), floating rate notes, certificates of deposit, debentures, asset backed securities and Launch date June 2007 ISIN Class I LU0283958097 government or corporate bonds, cash and cash equivalents. Fund manager Chris Callan ISIN Class A LU0283957529 Arunabh Mukherjee ISIN Class B LU0283957875 Location London Publication date: 16 April 2008. Base currency British pounds 1 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average TER Class I1 0.80 net assets for the six month period (or since inception if fund launched within 1 TER Class A 1.15 this period). Benchmark Overnight GBP LIBOR Index 2 Number of stop-outs since inception. The Fund has in place an ex-ante stop Total assets £ 0.5 million loss target aiming to provide the portfolio with downside risk protection. The NAV £ 25.92 stop loss is monitored on a daily basis, based on our ex-ante VaR level of 2% Number of stop-outs2 4 and a 1% probability of occurrence. Number of holdings 26 Please refer to back cover for important information and risk warnings paragraph (5) relating to derivative instruments. CURRENCY FORWARDS Weighting (asset allocation) Short positions Long positions AUD - Australia ($) CLP - Chile (Peso) BRL - Brazil (Real) COP - Colombia (Peso) CAD - Canada ($) CZK - Czech Republic (Koruna) CHF - Switzerland (Franc) GBP - Britain (Pound) EUR - Euroland (Euro) IDR - Indonesia (Rupiah) HUF - Hungary (Forint) ILS - Israel (Shekel) NOK - Norway (Krone) JPY - Japan (Yen) NZD - New Zealand ($) KRW - South Korea (Won) PHP - Philippines (Peso) MXN - Mexico (Peso) SEK - Sweden (Krona) PLN - Poland (Zloty) SGD - Singapore ($) RUB - Russia (Ruble) SKK - Slovakia (Koruna) TRY - Turkey (Lira) TWD - Taiwan ($) ZAR - South Africa (Rand)

Morgan Stanley SICAV Quarterly Report - March 2008 57 Morgan Stanley SICAV 31 MARCH 2008 FX Alpha Plus RC 200 (US Dollar) Fund

RETURNS IN US DOLLARS VS. OVERNIGHT USD LIBOR INDEX1 INVESTMENT UNIVERSE Fund (net of fees) % The Funds will invest in a diversified portfolio of spot, forward and Peer Group non-deliverable currency forwards. Each currency invested in may Period Class I Class A Class B Index Ranking represent either a long or short position in relative US Dollars and converted back to the Funds’ reference currency, as appropriate. One month (0.23) (0.08) - 0.26 - There is no physical settlement when a short selling strategy is Last three months (0.50) (0.38) - 0.87 - deployed with any net amounts being paid. YTD 2008 (0.50) (0.38) - 0.87 - • G10: AUD, CAD, CHF, EUR, GBP, JPY, NOK, NZD, SEK One year 3.54 3.42 - 4.93 - • Latin America: ARS, BRL, CLP, COP, MXN Since inception (annualised) 3.98 - - 4.97 - • EMEA: CZK, HUF, ILS, PLN, RUB, SKK, TRY, ZAR • Asia Ex-Japan: IDR, KRW, PHP, SGD, THB, TWD 12 months to: March 2008 3.54 3.42 - 4.93 - The Funds may also invest in the units of other UCITS or undertakings for collective investment, deposits, fixed or floating rate instruments Past performance is no indication of current or future performance. These performance data do not take account of (including but not limited to commercial paper), floating rate notes, commissions and costs incurred on the issue and redemption of units. certificates of deposit, debentures, asset backed securities and government or corporate bonds, cash and cash equivalents. CLASS I SHARES VS. OVERNIGHT USD LIBOR INDEX2 Performance of 100 US dollars invested since inception FUND AIM 112 Seeks to generate a risk controlled (“RC”) return, measured in US dollars, that has a low level of correlation to other asset classes by 110 Fund investing in currency pairs. The Investment Adviser’s systematic 108 Index currency selection process employs computer modelling within a 106 disciplined risk controlled framework and seeks to profit from changes in the relative valuations of currency pairs. 104 102 INVESTMENT IMPLEMENTATION

Cash value 100 Disciplined risk-controlled approach utilising quantitative models to 98 construct optimised portfolios that target explicit Value at Risk 96 (VaR). Systematic currency selection process employs computer 94 modelling within a disciplined risk controlled framework and seeks Feb 07 Sep 07 Mar 08 to profit from changes in the relative valuations of currency pairs. The end result is a synthetic portfolio which aims to produce high Facts and figures Statistics Class I Index yield and stable volatility. Launch date February 2007 Alpha - - Fund manager Chris Callan Beta - - Publication date: 16 April 2008. Arunabh Mukherjee R squared - - 1 Launch date of Class I, Class A & Class B shares was February 2007. Location London Information ratio - - Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Derivatives sector. Base currency US dollars Tracking error - - 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of TER Class I3 0.80 Standard deviation - - fees. TER Class A3 1.15 3 Total expenses charged to share class open as at 31 December 2007, Total assets $ 28.3 million ISIN Class I LU0283955663 calculated net of any fee waivers and expressed as a percentage of average NAV $ 26.06 ISIN Class A LU0283955234 net assets for the six month period (or since inception if fund launched within Number of stop-outs4 4 ISIN Class B LU0283955580 this period). Number of holdings 26 4 Number of stop-outs since inception. The Fund has in place an ex-ante stop loss target aiming to provide the portfolio with downside risk protection. The CURRENCY FORWARDS stop loss is monitored on a daily basis, based on our ex-ante VaR level of 2% and a 1% probability of occurrence. Weighting (asset allocation) Please refer to back cover for important information and risk warnings paragraph Short positions Long positions (5) relating to derivative instruments. AUD - Australia ($) CLP - Chile (Peso) BRL - Brazil (Real) COP - Colombia (Peso) CAD - Canada ($) CZK - Czech Republic (Koruna) CHF - Switzerland (Franc) GBP - Britain (Pound) EUR - Euroland (Euro) IDR - Indonesia (Rupiah) HUF - Hungary (Forint) ILS - Israel (Shekel) NOK - Norway (Krone) JPY - Japan (Yen) NZD - New Zealand ($) KRW - South Korea (Won) PHP - Philippines (Peso) MXN - Mexico (Peso) SEK - Sweden (Krona) PLN - Poland (Zloty) SGD - Singapore ($) RUB - Russia (Ruble) SKK - Slovakia (Koruna) TRY - Turkey (Lira) TWD - Taiwan ($) ZAR - South Africa (Rand)

58 Morgan Stanley SICAV Quarterly Report - March 2008 Morgan Stanley SICAV 31 MARCH 2008 FX Alpha Plus RC 400 (Euro) Fund

RETURNS IN EURO VS. EURO OVERNIGHT INDEX AVERAGE (EONIA)1 INVESTMENT UNIVERSE Fund (net of fees) % The Funds will invest in a diversified portfolio of spot, forward and Peer Group non-deliverable currency forwards. Each currency invested in may Period Class I Class A Class B Index Ranking represent either a long or short position in relative US Dollars and converted back to the Funds’ reference currency, as appropriate. One month (0.19) (0.23) (0.31) 0.34 - There is no physical settlement when a short selling strategy is Last three months (1.15) (1.31) (1.55) 1.01 - deployed with any net amounts being paid. YTD 2008 (1.15) (1.31) (1.55) 1.01 - • G10: AUD, CAD, CHF, EUR, GBP, JPY, NOK, NZD, SEK One year 2.26 1.75 0.72 4.14 - • Latin America: ARS, BRL, CLP, COP, MXN Since inception (annualised) 2.99 - - 4.11 - • EMEA: CZK, HUF, ILS, PLN, RUB, SKK, TRY, ZAR • Asia Ex-Japan: IDR, KRW, PHP, SGD, THB, TWD 12 months to: March 2008 2.26 1.75 0.72 4.14 - The Funds may also invest in the units of other UCITS or undertakings for collective investment, deposits, fixed or floating rate instruments Past performance is no indication of current or future performance. These performance data do not take account of (including but not limited to commercial paper), floating rate notes, commissions and costs incurred on the issue and redemption of units. certificates of deposit, debentures, asset backed securities and government or corporate bonds, cash and cash equivalents. CLASS I SHARES VS. EURO OVERNIGHT INDEX AVERAGE (EONIA)2 Performance of 100 euro invested since inception FUND AIM 110 Seeks to generate a risk controlled (“RC”) return, measured in euros, Fund that has a low level of correlation to other asset classes by investing 108 in currency pairs. The Investment Adviser’s systematic currency 106 Index selection process employs computer modelling within a disciplined risk controlled framework and seeks to profit from changes in the 104 relative valuations of currency pairs. 102 100 INVESTMENT IMPLEMENTATION Cash value Disciplined risk-controlled approach utilising quantitative models to 98 construct optimised portfolios that target explicit Value at Risk 96 (VaR). Systematic currency selection process employs computer 94 modelling within a disciplined risk controlled framework and seeks Feb 07 Sep 07 Mar 08 to profit from changes in the relative valuations of currency pairs. The end result is a synthetic portfolio which aims to produce high Facts and figures Statistics Class I Index yield and stable volatility. Launch date February 2007 Alpha - - Fund manager Chris Callan Beta - - Publication date: 16 April 2008. Arunabh Mukherjee R squared - - 1 Launch date of Class I, Class A & Class B shares was February 2007. Location London Information ratio - - Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Derivatives sector. Base currency euro Tracking error - - 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of TER Class I3 0.91 Standard deviation - - fees. TER Class A3 1.48 3 Total expenses charged to share class open as at 31 December 2007, Total assets € 841.8 million ISIN Class I LU0283947058 calculated net of any fee waivers and expressed as a percentage of average € NAV 25.77 ISIN Class A LU0283946597 net assets for the six month period (or since inception if fund launched within Number of stop-outs4 4 ISIN Class B LU0283946837 this period). Number of holdings 26 4 Number of stop-outs since inception. The Fund has in place an ex-ante stop loss target aiming to provide the portfolio with downside risk protection. The CURRENCY FORWARDS stop loss is monitored on a daily basis, based on our ex-ante VaR level of 2% and a 1% probability of occurrence. Weighting (asset allocation) Please refer to back cover for important information and risk warnings paragraph Short positions Long positions (5) relating to derivative instruments. AUD - Australia ($) CLP - Chile (Peso) BRL - Brazil (Real) COP - Colombia (Peso) CAD - Canada ($) CZK - Czech Republic (Koruna) CHF - Switzerland (Franc) GBP - Britain (Pound) EUR - Euroland (Euro) IDR - Indonesia (Rupiah) HUF - Hungary (Forint) ILS - Israel (Shekel) NOK - Norway (Krone) JPY - Japan (Yen) NZD - New Zealand ($) KRW - South Korea (Won) PHP - Philippines (Peso) MXN - Mexico (Peso) SEK - Sweden (Krona) PLN - Poland (Zloty) SGD - Singapore ($) RUB - Russia (Ruble) SKK - Slovakia (Koruna) TRY - Turkey (Lira) TWD - Taiwan ($) ZAR - South Africa (Rand)

Morgan Stanley SICAV Quarterly Report - March 2008 59 Morgan Stanley SICAV 31 MARCH 2008 FX Alpha Plus RC 400 (Sterling) Fund

FUND AIM INVESTMENT UNIVERSE Seeks to generate a risk controlled (“RC”) return, measured in sterling, that has a low level of The Funds will invest in a diversified portfolio of spot, forward and correlation to other asset classes by investing in currency pairs. The Investment Adviser’s systematic non-deliverable currency forwards. Each currency invested in may currency selection process employs computer modelling within a disciplined risk controlled represent either a long or short position in relative US Dollars and framework and seeks to profit from changes in the relative valuations of currency pairs. converted back to the Funds’ reference currency, as appropriate. There is no physical settlement when a short selling strategy is INVESTMENT IMPLEMENTATION deployed with any net amounts being paid. • G10: AUD, CAD, CHF, EUR, GBP, JPY, NOK, NZD, SEK Disciplined risk-controlled approach utilising quantitative models to construct optimised portfolios • Latin America: ARS, BRL, CLP, COP, MXN that target explicit Value at Risk (VaR). • EMEA: CZK, HUF, ILS, PLN, RUB, SKK, TRY, ZAR Systematic currency selection process employs computer modelling within a disciplined risk • Asia Ex-Japan: IDR, KRW, PHP, SGD, THB, TWD controlled framework and seeks to profit from changes in the relative valuations of currency pairs. The end result is a synthetic portfolio which aims to produce high yield and stable volatility. The Funds may also invest in the units of other UCITS or undertakings for collective investment, deposits, fixed or floating rate instruments Facts and figures (including but not limited to commercial paper), floating rate notes, certificates of deposit, debentures, asset backed securities and Launch date June 2007 ISIN Class I LU0283958766 government or corporate bonds, cash and cash equivalents. Fund manager Chris Callan ISIN Class A LU0283958410 Arunabh Mukherjee ISIN Class B LU0283958683 Location London Publication date: 16 April 2008. Base currency British pounds 1 Total expenses charged to share class open as at 31 December 2007, calculated net of any fee waivers and expressed as a percentage of average TER Class I1 1.05 net assets for the six month period (or since inception if fund launched within 1 TER Class A 1.55 this period). Benchmark Overnight GBP LIBOR Index 2 Number of stop-outs since inception. The Fund has in place an ex-ante stop Total assets £ 10.2 million loss target aiming to provide the portfolio with downside risk protection. The NAV £ 25.47 stop loss is monitored on a daily basis, based on our ex-ante VaR level of 2% Number of stop-outs2 4 and a 1% probability of occurrence. Number of holdings 26 Please refer to back cover for important information and risk warnings paragraph (5) relating to derivative instruments. CURRENCY FORWARDS Weighting (asset allocation) Short positions Long positions AUD - Australia ($) CLP - Chile (Peso) BRL - Brazil (Real) COP - Colombia (Peso) CAD - Canada ($) CZK - Czech Republic (Koruna) CHF - Switzerland (Franc) GBP - Britain (Pound) EUR - Euroland (Euro) IDR - Indonesia (Rupiah) HUF - Hungary (Forint) ILS - Israel (Shekel) NOK - Norway (Krone) JPY - Japan (Yen) NZD - New Zealand ($) KRW - South Korea (Won) PHP - Philippines (Peso) MXN - Mexico (Peso) SEK - Sweden (Krona) PLN - Poland (Zloty) SGD - Singapore ($) RUB - Russia (Ruble) SKK - Slovakia (Koruna) TRY - Turkey (Lira) TWD - Taiwan ($) ZAR - South Africa (Rand)

60 Morgan Stanley SICAV Quarterly Report - March 2008 Morgan Stanley SICAV 31 MARCH 2008 FX Alpha Plus RC 400 (US Dollar) Fund

RETURNS IN US DOLLARS VS. OVERNIGHT USD LIBOR INDEX1 INVESTMENT UNIVERSE Fund (net of fees) % The Funds will invest in a diversified portfolio of spot, forward and Peer Group non-deliverable currency forwards. Each currency invested in may Period Class I Class A Class B Index Ranking represent either a long or short position in relative US Dollars and converted back to the Funds’ reference currency, as appropriate. One month (0.19) (0.23) - 0.26 - There is no physical settlement when a short selling strategy is Last three months (1.29) (1.38) - 0.87 - deployed with any net amounts being paid. YTD 2008 (1.29) (1.38) - 0.87 - • G10: AUD, CAD, CHF, EUR, GBP, JPY, NOK, NZD, SEK One year 2.73 2.30 - 4.93 - • Latin America: ARS, BRL, CLP, COP, MXN Since inception (annualised) 3.51 - - 4.97 - • EMEA: CZK, HUF, ILS, PLN, RUB, SKK, TRY, ZAR • Asia Ex-Japan: IDR, KRW, PHP, SGD, THB, TWD 12 months to: March 2008 2.73 2.30 - 4.93 - The Funds may also invest in the units of other UCITS or undertakings for collective investment, deposits, fixed or floating rate instruments Past performance is no indication of current or future performance. These performance data do not take account of (including but not limited to commercial paper), floating rate notes, commissions and costs incurred on the issue and redemption of units. certificates of deposit, debentures, asset backed securities and government or corporate bonds, cash and cash equivalents. CLASS I SHARES VS. OVERNIGHT USD LIBOR INDEX2 Performance of 100 US dollars invested since inception FUND AIM 112 Seeks to generate a risk controlled (“RC”) return, measured in US dollars, that has a low level of correlation to other asset classes by 110 Fund investing in currency pairs. The Investment Adviser’s systematic 108 Index currency selection process employs computer modelling within a 106 disciplined risk controlled framework and seeks to profit from changes in the relative valuations of currency pairs. 104 102 INVESTMENT IMPLEMENTATION

Cash value 100 Disciplined risk-controlled approach utilising quantitative models to 98 construct optimised portfolios that target explicit Value at Risk 96 (VaR). Systematic currency selection process employs computer 94 modelling within a disciplined risk controlled framework and seeks Feb 07 Sep 07 Mar 08 to profit from changes in the relative valuations of currency pairs. The end result is a synthetic portfolio which aims to produce high Facts and figures Statistics Class I Index yield and stable volatility. Launch date February 2007 Alpha - - Fund manager Chris Callan Beta - - Publication date: 16 April 2008. Arunabh Mukherjee R squared - - 1 Launch date of Class I, Class A & Class B shares was February 2007. Location London Information ratio - - Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Derivatives sector. Base currency US dollars Tracking error - - 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of TER Class I3 1.05 Standard deviation - - fees. TER Class A3 1.55 3 Total expenses charged to share class open as at 31 December 2007, Total assets $ 136.2 million ISIN Class I LU0283956471 calculated net of any fee waivers and expressed as a percentage of average NAV $ 25.92 ISIN Class A LU0283956125 net assets for the six month period (or since inception if fund launched within Number of stop-outs4 4 ISIN Class B LU0283956398 this period). Number of holdings 26 4 Number of stop-outs since inception. The Fund has in place an ex-ante stop loss target aiming to provide the portfolio with downside risk protection. The CURRENCY FORWARDS stop loss is monitored on a daily basis, based on our ex-ante VaR level of 2% and a 1% probability of occurrence. Weighting (asset allocation) Please refer to back cover for important information and risk warnings paragraph Short positions Long positions (5) relating to derivative instruments. AUD - Australia ($) CLP - Chile (Peso) BRL - Brazil (Real) COP - Colombia (Peso) CAD - Canada ($) CZK - Czech Republic (Koruna) CHF - Switzerland (Franc) GBP - Britain (Pound) EUR - Euroland (Euro) IDR - Indonesia (Rupiah) HUF - Hungary (Forint) ILS - Israel (Shekel) NOK - Norway (Krone) JPY - Japan (Yen) NZD - New Zealand ($) KRW - South Korea (Won) PHP - Philippines (Peso) MXN - Mexico (Peso) SEK - Sweden (Krona) PLN - Poland (Zloty) SGD - Singapore ($) RUB - Russia (Ruble) SKK - Slovakia (Koruna) TRY - Turkey (Lira) TWD - Taiwan ($) ZAR - South Africa (Rand)

Morgan Stanley SICAV Quarterly Report - March 2008 61 Morgan Stanley SICAV 31 MARCH 2008 FX Alpha Plus RC 800 (Euro) Fund

RETURNS IN EURO VS. EURO OVERNIGHT INDEX AVERAGE (EONIA)1 INVESTMENT UNIVERSE Fund (net of fees) % The Funds will invest in a diversified portfolio of spot, forward and Peer Group non-deliverable currency forwards. Each currency invested in may Period Class I Class A Class B Index Ranking represent either a long or short position in relative US Dollars and converted back to the Funds’ reference currency, as appropriate. One month (0.66) (0.74) (0.83) 0.34 - There is no physical settlement when a short selling strategy is Last three months (3.14) (3.26) (3.52) 1.01 - deployed with any net amounts being paid. YTD 2008 (3.14) (3.26) (3.52) 1.01 - • G10: AUD, CAD, CHF, EUR, GBP, JPY, NOK, NZD, SEK One year 1.18 0.71 (0.32) 4.14 - • Latin America: ARS, BRL, CLP, COP, MXN Since inception (annualised) 2.55 - - 4.11 - • EMEA: CZK, HUF, ILS, PLN, RUB, SKK, TRY, ZAR • Asia Ex-Japan: IDR, KRW, PHP, SGD, THB, TWD 12 months to: March 2008 1.18 0.71 (0.32) 4.14 - The Funds may also invest in the units of other UCITS or undertakings for collective investment, deposits, fixed or floating rate instruments Past performance is no indication of current or future performance. These performance data do not take account of (including but not limited to commercial paper), floating rate notes, commissions and costs incurred on the issue and redemption of units. certificates of deposit, debentures, asset backed securities and government or corporate bonds, cash and cash equivalents. CLASS I SHARES VS. EURO OVERNIGHT INDEX AVERAGE (EONIA)2 Performance of 100 euro invested since inception FUND AIM 112 Seeks to generate a risk controlled (“RC”) return, measured in euros, that has a low level of correlation to other asset classes by investing 110 Fund in currency pairs. The Investment Adviser’s systematic currency 108 Index selection process employs computer modelling within a disciplined 106 risk controlled framework and seeks to profit from changes in the relative valuations of currency pairs. 104 102 INVESTMENT IMPLEMENTATION

Cash value 100 Disciplined risk-controlled approach utilising quantitative models to 98 construct optimised portfolios that target explicit Value at Risk 96 (VaR). Systematic currency selection process employs computer 94 modelling within a disciplined risk controlled framework and seeks Feb 07 Sep 07 Mar 08 to profit from changes in the relative valuations of currency pairs. The end result is a synthetic portfolio which aims to produce high Facts and figures Statistics Class I Index yield and stable volatility. Launch date February 2007 Alpha - - Fund manager Chris Callan Beta - - Publication date: 16 April 2008. Arunabh Mukherjee R squared - - 1 Launch date of Class I, Class A & Class B shares was February 2007. Location London Information ratio - - Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Derivatives sector. Base currency euro Tracking error - - 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of TER Class I3 1.23 Standard deviation - - fees. TER Class A3 1.79 3 Total expenses charged to share class open as at 31 December 2007, Total assets € 574.0 million ISIN Class I LU0283949260 calculated net of any fee waivers and expressed as a percentage of average € NAV 25.62 ISIN Class A LU0283948379 net assets for the six month period (or since inception if fund launched within Number of stop-outs4 4 ISIN Class B LU0283948882 this period). Number of holdings 26 4 Number of stop-outs since inception. The Fund has in place an ex-ante stop loss target aiming to provide the portfolio with downside risk protection. The CURRENCY FORWARDS stop loss is monitored on a daily basis, based on our ex-ante VaR level of 2% and a 1% probability of occurrence. Weighting (asset allocation) Please refer to back cover for important information and risk warnings paragraph Short positions Long positions (5) relating to derivative instruments. AUD - Australia ($) CLP - Chile (Peso) BRL - Brazil (Real) COP - Colombia (Peso) CAD - Canada ($) CZK - Czech Republic (Koruna) CHF - Switzerland (Franc) GBP - Britain (Pound) EUR - Euroland (Euro) IDR - Indonesia (Rupiah) HUF - Hungary (Forint) ILS - Israel (Shekel) NOK - Norway (Krone) JPY - Japan (Yen) NZD - New Zealand ($) KRW - South Korea (Won) PHP - Philippines (Peso) MXN - Mexico (Peso) SEK - Sweden (Krona) PLN - Poland (Zloty) SGD - Singapore ($) RUB - Russia (Ruble) SKK - Slovakia (Koruna) TRY - Turkey (Lira) TWD - Taiwan ($) ZAR - South Africa (Rand)

62 Morgan Stanley SICAV Quarterly Report - March 2008 Morgan Stanley SICAV 31 MARCH 2008 FX Alpha Plus RC 800 (Sterling) Fund

RETURNS IN BRITISH POUNDS VS. OVERNIGHT GBP LIBOR INDEX1 INVESTMENT UNIVERSE Fund (net of fees) % The Funds will invest in a diversified portfolio of spot, forward and Peer Group non-deliverable currency forwards. Each currency invested in may Period Class I Class A Class B Index Ranking represent either a long or short position in relative US Dollars and converted back to the Funds’ reference currency, as appropriate. One month (0.61) (0.62) - 0.48 - There is no physical settlement when a short selling strategy is Last three months (2.82) (2.96) - 1.39 - deployed with any net amounts being paid. YTD 2008 (2.82) (2.96) - 1.39 - • G10: AUD, CAD, CHF, EUR, GBP, JPY, NOK, NZD, SEK One year 3.15 - - 5.92 - • Latin America: ARS, BRL, CLP, COP, MXN Since inception (annualised) 4.55 - - 5.88 - • EMEA: CZK, HUF, ILS, PLN, RUB, SKK, TRY, ZAR • Asia Ex-Japan: IDR, KRW, PHP, SGD, THB, TWD 12 months to: March 2008 3.15 - - 5.92 - The Funds may also invest in the units of other UCITS or undertakings for collective investment, deposits, fixed or floating rate instruments Past performance is no indication of current or future performance. These performance data do not take account of (including but not limited to commercial paper), floating rate notes, commissions and costs incurred on the issue and redemption of units. certificates of deposit, debentures, asset backed securities and government or corporate bonds, cash and cash equivalents. CLASS I SHARES VS. OVERNIGHT GBP LIBOR INDEX2 Performance of 100 British pounds invested since inception FUND AIM 114 Seeks to generate a risk controlled (“RC”) return, measured in sterling, 112 Fund that has a low level of correlation to other asset classes by investing in currency pairs. The Investment Adviser’s systematic currency 110 Index selection process employs computer modelling within a disciplined 108 risk controlled framework and seeks to profit from changes in the 106 relative valuations of currency pairs. 104 102 INVESTMENT IMPLEMENTATION Cash value 100 Disciplined risk-controlled approach utilising quantitative models to 98 construct optimised portfolios that target explicit Value at Risk 96 (VaR). Systematic currency selection process employs computer 94 modelling within a disciplined risk controlled framework and seeks Feb 07 Sep 07 Mar 08 to profit from changes in the relative valuations of currency pairs. The end result is a synthetic portfolio which aims to produce high Facts and figures Statistics Class I Index yield and stable volatility. Launch date February 2007 Alpha - - Fund manager Chris Callan Beta - - Publication date: 16 April 2008. Arunabh Mukherjee R squared - - 1 Launch date of Class I, Class A & Class B shares was February 2007. Location London Information ratio - - Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Derivatives sector. Base currency British pounds Tracking error - - 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of TER Class I3 1.35 Standard deviation - - fees. TER Class A3 1.85 3 Total expenses charged to share class open as at 31 December 2007, Total assets £ 30.7 million ISIN Class I LU0283959491 calculated net of any fee waivers and expressed as a percentage of average NAV £ 26.16 ISIN Class A LU0283959145 net assets for the six month period (or since inception if fund launched within Number of stop-outs4 4 ISIN Class B LU0283959228 this period). Number of holdings 26 4 Number of stop-outs since inception. The Fund has in place an ex-ante stop loss target aiming to provide the portfolio with downside risk protection. The CURRENCY FORWARDS stop loss is monitored on a daily basis, based on our ex-ante VaR level of 2% and a 1% probability of occurrence. Weighting (asset allocation) Please refer to back cover for important information and risk warnings paragraph Short positions Long positions (5) relating to derivative instruments. AUD - Australia ($) CLP - Chile (Peso) BRL - Brazil (Real) COP - Colombia (Peso) CAD - Canada ($) CZK - Czech Republic (Koruna) CHF - Switzerland (Franc) GBP - Britain (Pound) EUR - Euroland (Euro) IDR - Indonesia (Rupiah) HUF - Hungary (Forint) ILS - Israel (Shekel) NOK - Norway (Krone) JPY - Japan (Yen) NZD - New Zealand ($) KRW - South Korea (Won) PHP - Philippines (Peso) MXN - Mexico (Peso) SEK - Sweden (Krona) PLN - Poland (Zloty) SGD - Singapore ($) RUB - Russia (Ruble) SKK - Slovakia (Koruna) TRY - Turkey (Lira) TWD - Taiwan ($) ZAR - South Africa (Rand)

Morgan Stanley SICAV Quarterly Report - March 2008 63 Morgan Stanley SICAV 31 MARCH 2008 FX Alpha Plus RC 800 (US Dollar) Fund

RETURNS IN US DOLLARS VS. OVERNIGHT USD LIBOR INDEX1 INVESTMENT UNIVERSE Fund (net of fees) % The Funds will invest in a diversified portfolio of spot, forward and Peer Group non-deliverable currency forwards. Each currency invested in may Period Class I Class A Class B Index Ranking represent either a long or short position in relative US Dollars and converted back to the Funds’ reference currency, as appropriate. One month (0.80) (0.85) - 0.26 - There is no physical settlement when a short selling strategy is Last three months (3.31) (3.45) - 0.87 - deployed with any net amounts being paid. YTD 2008 (3.31) (3.45) - 0.87 - • G10: AUD, CAD, CHF, EUR, GBP, JPY, NOK, NZD, SEK One year 2.44 1.58 - 4.93 - • Latin America: ARS, BRL, CLP, COP, MXN Since inception (annualised) 3.96 - - 4.97 - • EMEA: CZK, HUF, ILS, PLN, RUB, SKK, TRY, ZAR • Asia Ex-Japan: IDR, KRW, PHP, SGD, THB, TWD 12 months to: March 2008 2.44 1.58 - 4.93 - The Funds may also invest in the units of other UCITS or undertakings for collective investment, deposits, fixed or floating rate instruments Past performance is no indication of current or future performance. These performance data do not take account of (including but not limited to commercial paper), floating rate notes, commissions and costs incurred on the issue and redemption of units. certificates of deposit, debentures, asset backed securities and government or corporate bonds, cash and cash equivalents. CLASS I SHARES VS. OVERNIGHT USD LIBOR INDEX2 Performance of 100 US dollars invested since inception FUND AIM 114 Seeks to generate a risk controlled (“RC”) return, measured in US 112 Fund dollars, that has a low level of correlation to other asset classes by investing in currency pairs. The Investment Adviser’s systematic 110 Index currency selection process employs computer modelling within a 108 disciplined risk controlled framework and seeks to profit from changes 106 in the relative valuations of currency pairs. 104 102 INVESTMENT IMPLEMENTATION Cash value 100 Disciplined risk-controlled approach utilising quantitative models to 98 construct optimised portfolios that target explicit Value at Risk 96 (VaR). Systematic currency selection process employs computer 94 modelling within a disciplined risk controlled framework and seeks Feb 07 Sep 07 Mar 08 to profit from changes in the relative valuations of currency pairs. The end result is a synthetic portfolio which aims to produce high Facts and figures Statistics Class I Index yield and stable volatility. Launch date February 2007 Alpha - - Fund manager Chris Callan Beta - - Publication date: 16 April 2008. Arunabh Mukherjee R squared - - 1 Launch date of Class I, Class A & Class B shares was February 2007. Location London Information ratio - - Morningstar's peer group rankings refer to Class A and are taken from the Offshore and International Funds universe, in the Derivatives sector. Base currency US dollars Tracking error - - 2 Calculations are NAV to NAV. Performance of the SICAV is calculated net of TER Class I3 1.35 Standard deviation - - fees. TER Class A3 1.85 3 Total expenses charged to share class open as at 31 December 2007, Total assets $ 29.2 million ISIN Class I LU0283957289 calculated net of any fee waivers and expressed as a percentage of average NAV $ 25.99 ISIN Class A LU0283956802 net assets for the six month period (or since inception if fund launched within Number of stop-outs4 4 ISIN Class B LU0283957107 this period). Number of holdings 26 4 Number of stop-outs since inception. The Fund has in place an ex-ante stop loss target aiming to provide the portfolio with downside risk protection. The CURRENCY FORWARDS stop loss is monitored on a daily basis, based on our ex-ante VaR level of 2% and a 1% probability of occurrence. Weighting (asset allocation) Please refer to back cover for important information and risk warnings paragraph Short positions Long positions (5) relating to derivative instruments. AUD - Australia ($) CLP - Chile (Peso) BRL - Brazil (Real) COP - Colombia (Peso) CAD - Canada ($) CZK - Czech Republic (Koruna) CHF - Switzerland (Franc) GBP - Britain (Pound) EUR - Euroland (Euro) IDR - Indonesia (Rupiah) HUF - Hungary (Forint) ILS - Israel (Shekel) NOK - Norway (Krone) JPY - Japan (Yen) NZD - New Zealand ($) KRW - South Korea (Won) PHP - Philippines (Peso) MXN - Mexico (Peso) SEK - Sweden (Krona) PLN - Poland (Zloty) SGD - Singapore ($) RUB - Russia (Ruble) SKK - Slovakia (Koruna) TRY - Turkey (Lira) TWD - Taiwan ($) ZAR - South Africa (Rand)

64 Morgan Stanley SICAV Quarterly Report - March 2008 Fund codes

Share Base EQUITY FUNDS Class CCY ISIN Code WKN Bloomberg Cusip Sedol

American Franchise Fund A USD LU0225737302 A0HG5T MORAMFA LX L65225408 B0MJ071 American Franchise Fund AX USD LU0225743375 N/A MORAMAX LX L65225432 B0MJ0D7 American Franchise Fund B USD LU0225744001 A0HG5U MORAMFB LX L65225416 B0MJ093 American Franchise Fund I USD LU0225741247 A0HG5V MORAMFI LX L65225424 B0MJ0B5 American Franchise Fund IX USD LU0225744266 N/A MORAMIX LX L65225440 B0MJ0F9 American Franchise Fund (hedged share class) AH EUR LU0266117927 A0LAYF MORAMAH LX L65225721 B1DBSG8 American Franchise Fund (hedged share class) IH EUR LU0266118651 A0LAYG MORAMIH LX L65225739 B1DBSH9

Asian Equity Fund A USD LU0073229253 986715 MORASEI LX L65235100 5194856 Asian Equity Fund AX USD LU0239676009 N/A MORASAX LX L65171180 B0V4PL6 Asian Equity Fund B USD LU0073229410 986716 MORASEB LX L65235118 5294109 Asian Equity Fund I USD LU0034260769 973395 MORIASE LX L6522K165 4590831 Asian Equity Fund IX USD LU0239676421 N/A MORASIX LX L65171198 B0V4PN8

Asian Property Fund A USD LU0078112413 987349 MORAPAI LX L65235563 5290817 Asian Property Fund AX USD LU0239678393 N/A MORAPAX LX L65171222 B0V4PS3 Asian Property Fund B USD LU0078112843 987350 MORAPBI LX L65235571 5289718 Asian Property Fund I USD LU0078113064 987348 MORAPRI LX L65235589 5289707 Asian Property Fund IX USD LU0239678633 N/A MORAPIX LX L65171230 B0V4PT4

Emerging Europe, Middle East and North Africa Equity Fund A EUR LU0118140002 579806 MORSEEA LX L6522V864 4572817 Emerging Europe, Middle East and North Africa Equity Fund AX EUR LU0218443736 N/A MOREEAX LX L65225341 B07RHM4 Emerging Europe, Middle East and North Africa Equity Fund B EUR LU0118140697 579807 MORSEEB LX L6522V872 4572839 Emerging Europe, Middle East and North Africa Equity Fund I EUR LU0118140184 579808 MORSEEI LX L6522V856 4572947 Emerging Europe, Middle East and North Africa Equity Fund IX EUR LU0218443900 N/A MOREEIX LX L65225358 B07RJ62

Emerging Markets Equity Fund A USD LU0073229840 986719 MOREMKI LX L65235142 5195138 Emerging Markets Equity Fund AX USD LU0218436797 N/A MOREMAX LX L65225283 B07RBX3 Emerging Markets Equity Fund B USD LU0073229923 986720 MOREMKB LX L65235159 5294176 Emerging Markets Equity Fund I USD LU0054793475 973397 MORIEMM LX L6522K546 4587714 Emerging Markets Equity Fund IX USD LU0218436870 N/A MOREMIX LX L65225291 B07RCF2

European Equity Fund A EUR LU0073234501 986721 MOREUEI LX L65235167 5195183 European Equity Fund B EUR LU0073234923 986722 MOREUEB LX L65235175 5293236 European Equity Fund I EUR LU0034265305 973398 MORIEUE LX L6522K157 4590808

European Equity Opportunities Fund A EUR LU0276178166 A0LGAN MOREEAE LX L65226174 B1JPF52 European Equity Opportunities Fund AX EUR LU0276178679 A0LGAR MOREOAX LX L65226158 B1JPFB8 European Equity Opportunities Fund B EUR LU0276178240 A0LGAP MOREEBE LX L65226133 B1JPF74 European Equity Opportunities Fund I EUR LU0276178596 A0LGAQ MOREEIE LX L65226141 B1JPF96 European Equity Opportunities Fund IX EUR LU0276178752 A0LGAS MOREOIX LX L65226166 B1JPFD0

European Optimised Research Extension Fund A EUR LU0341468535 - MSSEORA LX L00000004 B2QS0M3 European Optimised Research Extension Fund AX EUR LU0341469004 - MSSEOAX LX - B2QS0N4 European Optimised Research Extension Fund B EUR LU0341468881 - MSSEORB LX L00000005 B2QS0P6 European Optimised Research Extension Fund I EUR LU0341468964 - MSSEORI LX L00000006 B2QS0Q7 European Optimised Research Extension Fund IX EUR LU0341469186 - MSSEO IX LX - B2QS0R8

European Property Fund A EUR LU0078113650 987352 MOREPII LX L65235597 5289729 European Property Fund AX EUR LU0218443496 N/A MOREPAX LX L65225309 B07RD26 European Property Fund B EUR LU0078114898 987353 MOREPBI LX L65235605 5289688 European Property Fund I EUR LU0078115192 987351 MORECPI LX L65235613 5289741 European Property Fund IX EUR LU0218443579 N/A MOREPIX LX L65225317 B07RDP9

European Small Cap Value Fund A EUR LU0137765714 806737 MORESVA LX L65232198 7231449 European Small Cap Value Fund AX EUR LU0218444031 N/A MORSCAX LX L65225366 B07RJW8 European Small Cap Value Fund B EUR LU0137767173 806738 MORESVB LX L65232206 7231461 European Small Cap Value Fund I EUR LU0137764584 806736 MORESVI LX L65232214 7231438 European Small Cap Value Fund IX EUR LU0218444114 N/A MORSCIX LX L65225374 B07RKG9

European Systematic Equity Fund A EUR LU0225742567 A0HG77 MOESYEA LX L65225457 B0MJ0H1 European Systematic Equity Fund AX EUR LU0239681694 N/A MORSYAX LX L65171446 B0V4QT1 European Systematic Equity Fund I EUR LU0225742997 A0HG78 MOESYSI LX L65225465 B0MJ0J3 European Systematic Equity Fund IX EUR LU0239681777 N/A MORSYIX LX L65171453 B0V4QV3

Eurozone Equity Opportunities Fund A EUR LU0109967165 934139 MOREFAI LX L6522V781 5939552 Eurozone Equity Opportunities Fund AX EUR LU0239681348 N/A MOREFAX LX L65171248 B0V4PW7 Eurozone Equity Opportunities Fund B EUR LU0109967249 934140 MOREFBI LX L6522V773 5943928 Eurozone Equity Opportunities Fund I EUR LU0109967595 934141 MOREFII LX L6522V765 5939734 Eurozone Equity Opportunities Fund IX EUR LU0239681421 N/A MOREFIX LX L65171255 B0V4PX8

Morgan Stanley SICAV Quarterly Report - March 2008 65 Fund codes

Share Base EQUITY FUNDS Class CCY ISIN Code WKN Bloomberg Cusip Sedol

Global Brands Fund A USD LU0119620416 579993 MORGBRA LX L65235621 4635646 Global Brands Fund B USD LU0119620507 579994 MORGBRB LX L65235639 4635709 Global Brands Fund I USD LU0119620176 579992 MORGBRI LX L65235647 4635602

Global Equity Growth Fund A USD LU0257819291 A0J4K5 MORGEGA LX L6523D194 B17B5F2 Global Equity Growth Fund AX USD LU0257819614 A0J4K2 MORGEAX LX L6523D186 B17B5K7 Global Equity Growth Fund B USD LU0257819457 A0J4K4 MORGEGB LX L6523D202 B17B5G3 Global Equity Growth Fund I USD LU0257819531 A0J4K3 MORGEGI LX L6523D160 B17B5J6 Global Equity Growth Fund IX USD LU0257819705 A0J4K1 MORGEIX LX L6523D178 B17B5L8

Global Property Fund A USD LU0266114312 A0LAY3 MORGPRA LX L65225812 B1DBRS3 Global Property Fund AX USD LU0266115392 A0LAY6 MORGPAX LX L65225820 B1DBRY9 Global Property Fund B USD LU0266114585 A0LAY4 MORGPRB LX L65225788 B1DBRV6 Global Property Fund I USD LU0266114668 A0LAY5 MORGPRI LX L65225796 B1DBRX8 Global Property Fund IX USD LU0266115475 A0LAY7 MORGPIX LX L65225804 B1DBS02

Global Small Cap Value Fund A USD LU0073235227 986743 MORINSI LX L65235225 5195116 Global Small Cap Value Fund AX USD LU0239682585 N/A MSGSCAX LX L6522K835 B0V4P16 Global Small Cap Value Fund B USD LU0073235573 986744 MORINBI LX L65235233 5294314 Global Small Cap Value Fund I USD LU0054796148 973413 MORIINS LX L6522K447 2565626

Global Systematic Equity Fund A USD LU0113397276 615198 MORWEQA LX L6522V799 5939563 Global Systematic Equity Fund B USD LU0113397789 615199 MORWEQB LX L6522V807 5939745 Global Systematic Equity Fund I USD LU0113397516 615200 MORWEQI LX L6522V815 5939767

Global Value Equity Fund A USD LU0073230772 986723 MORGLEI LX L65235183 5195161 Global Value Equity Fund AX USD LU0239682825 N/A MORGLAX LX L65171149 B0V4PD8 Global Value Equity Fund B USD LU0073230855 986724 MORGLEB LX L65235191 5383535 Global Value Equity Fund I USD LU0011983359 973399 MORIGLE LX L6522K124 4604419 Global Value Equity Fund IX USD LU0239683393 N/A MORGLIX LX L65171156 B0V4PG1

Indian Equity Fund A USD LU0266115632 A0LAYY MORIEQA LX L65225838 B1DBS13 Indian Equity Fund AX USD LU0266116366 A0LAY1 MORINAX LX L65225846 B1DBS68 Indian Equity Fund B USD LU0266115806 A0LAYZ MORIEQB LX L65225879 B1DBS35 Indian Equity Fund I USD LU0266116010 A0LAY0 MORIEQI LX L65225861 B1DBS46 Indian Equity Fund IX USD LU0266116440 A0LAY2 MORINIX LX L65225853 B1DBS79

Japanese Equity Advantage Fund A JPY LU0248597030 A0JKFK MORJEAA LX L65225671 B10SQ91 Japanese Equity Advantage Fund AX JPY LU0248615626 A0JKFN MORJEAX LX L65225697 B10SQD5 Japanese Equity Advantage Fund B JPY LU0248607953 A0JKFL MORJEAB LX L65225689 B10SQB3 Japanese Equity Advantage Fund I JPY LU0248599168 A0JKFM MORJEAI LX L65225705 B10SQC4 Japanese Equity Advantage Fund IX JPY LU0248634098 A0JKFP MORJEIX LX L65225663 B10SQF7 Japanese Equity Advantage Fund (hedged share class) AH EUR LU0266118818 A0LAY8 MORJEAH LX L65225754 B1DBSK2 Japanese Equity Advantage Fund (hedged share class) IH EUR LU0266118909 A0LAY9 MORJEIH LX L65225747 B1DBSL3

Japanese Equity Growth Fund A JPY LU0109966357 934133 MORJGAI LX L6522V823 5939541 Japanese Equity Growth Fund AX JPY LU0218445350 N/A MORJGAX LX L65225325 B07RG38 Japanese Equity Growth Fund B JPY LU0109966605 934135 MORGBI LX L6522V831 5939701 Japanese Equity Growth Fund I JPY LU0109966944 934136 MORJGII LX L6522V849 5939723 Japanese Equity Growth Fund IX JPY LU0218445434 N/A MORJGIX LX L65225333 B07RGM7

Japanese Systematic Equity Fund A JPY LU0257817089 A0J4K9 MORJSEA LX L6523D129 B17B563 Japanese Systematic Equity Fund AX JPY LU0257818723 A0J4K7 MORJSAX LX L6523D145 B17B596 Japanese Systematic Equity Fund I JPY LU0257818640 A0J4K8 MORJSEI LX L6523D137 B17B585 Japanese Systematic Equity Fund IX JPY LU0257819028 A0J4K6 MORJSIX LX L6523D152 B17B5C9

Japanese Value Equity Fund A JPY LU0073251851 986725 MORJPEI LX L65235241 5194920 Japanese Value Equity Fund AX JPY LU0218444890 N/A MORIJAX LX L65225242 B07R8S7 Japanese Value Equity Fund B JPY LU0073253980 986726 MORJPEB LX L65235258 5383568 Japanese Value Equity Fund I JPY LU0034265487 973400 MORIJPE LX L6522K207 4574255 Japanese Value Equity Fund IX JPY LU0218445194 N/A MORIJIX LX L65225259 B07R8W1

Latin American Equity Fund A USD LU0073231317 986745 MORLTMI LX L65235266 5194931 Latin American Equity Fund AX USD LU0239686651 N/A MSLATAX LX L6522K876 B0V4P72 Latin American Equity Fund B USD LU0073231408 986746 MORLAMB LX L65235274 5383546 Latin American Equity Fund I USD LU0052627634 973414 MORILAT LX L6522K538 4563543 Latin American Equity Fund IX USD LU0239687972 N/A MSLATIX LX L6522K884 B0V4P83

66 Morgan Stanley SICAV Quarterly Report - March 2008 Fund codes

Share Base EQUITY FUNDS Class CCY ISIN Code WKN Bloomberg Cusip Sedol

US Equity Fund A USD LU0137773577 806766 MORUSEA LX L65232297 7231579 US Equity Fund B USD LU0137773734 806767 MORUSEB LX L65232289 7231580 US Equity Fund I USD LU0137773221 806765 MORUSEI LX L65232305 7231557

US Equity Growth Fund A USD LU0073232471 986729 MORUEGI LX L65235308 5194812 US Equity Growth Fund AX USD LU0239688517 N/A MSUEGAX LX L6522K819 B0V4NY5 US Equity Growth Fund B USD LU0073232554 986730 MORUEGB LX L65235316 5383579 US Equity Growth Fund I USD LU0042381250 973402 MORIUSE LX L6522K389 4590842 US Equity Growth Fund IX USD LU0239688608 N/A MSUEGIX LX L6522K827 B0V4NZ6 US Equity Growth Fund (hedged share class) AH EUR LU0266117414 A0LA1C MSUEGAH LX L65225887 B1DBSC4 US Equity Growth Fund (hedged share class) IH EUR LU0266117687 A0LA1D MSUEGIH LX L65226109 B1DBSD5

US Property A USD LU0073233958 986755 MORUSRI LX L65235324 5194823 US Property AX USD LU0218436011 N/A MORUSAX LX L65225200 B07R7J1 US Property B USD LU0073234097 986756 MORUSRB LX L65235332 5228722 US Property I USD LU0073233875 974852 MORIUSR LX L6522K611 5006597 US Property IX USD LU0218436102 N/A MORUSIX LX L65225218 B07R7X5

US Small Cap Growth Fund A USD LU0073229501 986717 MOREMGI LX L65235126 5195172 US Small Cap Growth Fund AX USD LU0239689168 N/A MSSMCAX LX L6522K777 B0V4NQ7 US Small Cap Growth Fund B USD LU0073229683 986718 MOREMGB LX L65235134 5383580 US Small Cap Growth Fund I USD LU0011983607 973396 MORIEMG LX L6522K116 4590820

US Systematic Equity Fund A USD LU0248607011 A0JKEN MORUSSA LX L65225630 B10SQG8 US Systematic Equity Fund AX USD LU0248635491 A0JKEQ MORUQAX LX L65225655 B10SQJ1 US Systematic Equity Fund I USD LU0248607441 A0JKEP MORUSSI LX L65225648 B10SQH9 US Systematic Equity Fund IX USD LU0248635731 A0JKFJ MORUEIX LX L65225622 B10SQK2

US Value Equity Fund A USD LU0073233446 986749 MORUVEI LX L65235365 5194953 US Value Equity Fund AX USD LU0218436441 N/A MORUVAX LX L65225267 B07R962 US Value Equity Fund B USD LU0073233529 986750 MORUVEB LX L65235373 5294303 US Value Equity Fund I USD LU0054797203 973416 MORIUSV LX L6522K496 4554213 US Value Equity Fund IX USD LU0218436524 N/A MORUVIX LX L65225275 B07R9S4 US Value Equity Fund (hedged share class) AH EUR LU0266116879 A0LA1E MORUVAH LX L65226117 B1DBS80 US Value Equity Fund (hedged share class) IH EUR LU0266117174 A0LA1F MORUVIH LX L65226125 B1DBSB3

BOND FUNDS

Emerging Markets Debt Fund A USD LU0073230004 986758 MOREDPI LX L65235407 5195127 Emerging Markets Debt Fund AX USD LU0239678807 N/A MOREDAX LX L65171123 B0V4P94 Emerging Markets Debt Fund B USD LU0073230343 986759 MOREDPB LX L65235415 5294251 Emerging Markets Debt Fund I USD LU0057132697 974537 MORIEMD LX L6522K587 5380558 Emerging Markets Debt Fund IX USD LU0239679011 N/A MOREDIX LX L65171131 B0V4PC7 Emerging Markets Debt Fund (hedged share class) AH EUR LU0266119204 A0LA1A MOREDAH LX L65225770 B1DBSM4 Emerging Markets Debt Fund (hedged share class) IH EUR LU0266119469 A0LA1B MOREDIH LX L65225762 B1DBSP7

Emerging Markets Domestic Debt Fund A USD LU0283960077 A0MKYN MOREMDA LX L65226224 B1NXR56 Emerging Markets Domestic Debt Fund B USD LU0283960150 A0MKYP MOREMDB LX L65226208 B1NXR67 Emerging Markets Domestic Debt Fund I USD LU0283960234 A0MKYQ MOREMDI LX L65226216 B1NXR78 Emerging Markets Domestic Debt Fund IX USD LU0283960317 A0MKYR MORDOIX LX L65226182 B1NXR89 Emerging Markets Domestic Debt Fund AX USD LU0283960408 A0MKYS MORDOAX LX L65226190 B1NXR90

Euro Bond Fund A EUR LU0073254285 986731 MORDMBI LX L65235381 5195105 Euro Bond Fund AX EUR LU0239680290 N/A MSEUBAX LX L6522K793 B0V4NV2 Euro Bond Fund B EUR LU0073254871 986732 MORDMBB LX L65235399 5294110 Euro Bond Fund I EUR LU0042383389 973403 MORIDMB LX L6522K330 4554257 Euro Bond Fund IX EUR LU0239680530 N/A MSEUBIX LX L6522K801 B0V4NW3 Euro Bond Fund S EUR LU0188278757 A0B9L3 MOREUBS LX L6523D111 7795235

Euro Corporate Bond Fund A EUR LU0132601682 694604 MORECAI LX L65232156 7166303 Euro Corporate Bond Fund B EUR LU0132602227 694605 MORECBI LX L65232164 7166336 Euro Corporate Bond Fund I EUR LU0132602656 694606 MORECII LX L65232172 7166347

Euro Strategic Bond Fund A EUR LU0073234253 986733 MOREUBI LX L65235423 5195194 Euro Strategic Bond Fund AX EUR LU0218442688 N/A MORIEAX LX L65225184 B07R6F0 Euro Strategic Bond Fund B EUR LU0073234766 986734 MOREUBB LX L65235431 5293946 Euro Strategic Bond Fund I EUR LU0034265644 973404 MORIEUB LX L6522K173 4590819 Euro Strategic Bond Fund IX EUR LU0218443066 N/A MORIEIX LX L65225192 B07R6Z0

Morgan Stanley SICAV Quarterly Report - March 2008 67 Fund codes

Share Base BOND FUNDS Class CCY ISIN Code WKN Bloomberg Cusip Sedol

Euro Total Return Bond Fund A EUR LU0283960663 A0MKYT MORETRA LX L65226687 B1NXRB2 Euro Total Return Bond Fund B EUR LU0283960747 A0MKYU MORETRB LX L65226711 B1NXRC3 Euro Total Return Bond Fund I EUR LU0283960820 A0MKYV MORETRI LX L65226703 B1NXRD4 Euro Total Return Bond Fund IX EUR LU0283961042 A0MKYW MORETIX LX L65226695 B1NXRF6 Euro Total Return Bond Fund AX EUR LU0283961125 A0MKYX MORETAX LX L65226729 B1NXRG7

European Currencies High Yield Bond Fund A EUR LU0073255761 986761 MORITAI LX L6522V229 5250305 European Currencies High Yield Bond Fund B EUR LU0073255928 986762 MORITBI LX L6522V245 5250242 European Currencies High Yield Bond Fund I EUR LU0073255688 986760 MORITII LX L6522V237 5251513

Global Bond Fund A USD LU0073230426 986735 MORGLBI LX L65235449 5195150 Global Bond Fund AX USD LU0218435716 N/A MORIGAX LX L65225168 B07R542 Global Bond Fund B USD LU0073230699 986736 MORGLBB LX L65235456 5383591 Global Bond Fund I USD LU0011983433 973405 MORIGLB LX L6522K132 5009488 Global Bond Fund IX USD LU0218435807 N/A MORIGIX LX L65225176 B07R5P3

Global Convertible Bond (Euro) Fund A EUR LU0149084120 633591 MORSCEA LX L65232404 7425640 Global Convertible Bond (Euro) Fund B EUR LU0149084393 633592 MORSCEB LX L65232388 7425651 Global Convertible Bond (Euro) Fund I EUR LU0149084047 633593 MORSCEI LX L65232396 7425662

Global Convertible Bond (USD) Fund A USD LU0149084633 633594 MORSCUA LX L65232412 7425598 Global Convertible Bond (USD) Fund B USD LU0149084989 633595 MORSCUB LX L65232370 7425628 Global Convertible Bond (USD) Fund I USD LU0149084476 633596 MORSCUI LX L65232420 7425639

Short Maturity Euro Bond Fund A EUR LU0073235904 986751 MORSHMI LX L65235522 5194793 Short Maturity Euro Bond Fund B EUR LU0073236118 986752 MORSHBI LX L65235530 5748093 Short Maturity Euro Bond Fund I EUR LU0052620894 973806 MORISME LX L6522K470 4563554

US Bond Fund A USD LU0073231580 986737 MORNABI LX L65235480 5194919 US Bond Fund AX USD LU0218436284 N/A MORSTAX LX L65225226 B07R8F4 US Bond Fund B USD LU0073231663 986738 MORNTAI LX L65235498 5294143 US Bond Fund I USD LU0034265727 973406 MORINAM LX L6522K231 4554224 US Bond Fund IX USD LU0218436367 N/A MORSTIX LX L65225234 B07R8R6 US Bond Fund S USD LU0188279482 A0B9L2 MORUSBS LX L6523D103 7795172

US Dollar Short Duration Fund A USD LU0149960790 662949 MORUSDA LX L65232438 7385700 US Dollar Short Duration Fund B USD LU0149961418 662951 MORUSDB LX L65232446 7385733 US Dollar Short Duration Fund I USD LU0149961251 662952 MORUSDI LX L65232453 7385744

LIQUIDITY FUNDS

Euro Liquidity Fund A EUR LU0106251654 930977 MORELFA LX L6522V690 5862238 Euro Liquidity Fund AX EUR LU0106247389 930974 MORELAX LX L6522V757 5862197 Euro Liquidity Fund B EUR LU0106251811 930978 MORELFB LX L6522V708 5862249 Euro Liquidity Fund BX EUR LU0106250680 930975 MORELBX LX L6522V724 5862216 Euro Liquidity Fund I EUR LU0106252116 930979 MORELFI LX L6522V716 5862272 Euro Liquidity Fund IX EUR LU016251225 930976 MORELIX LX L6522V740 5862227

US Dollar Liquidity Fund A USD LU0097977184 921244 MORUDAI LX L6522V559 5691948 US Dollar Liquidity Fund AX USD LU0086462446 989044 MORUAXI LX L6522V492 5457418 US Dollar Liquidity Fund B USD LU0097978158 921245 MORUDBI LX L6522V567 5691959 US Dollar Liquidity Fund BX USD LU0086462529 989045 MORUBXI LX L6522V500 5691896 US Dollar Liquidity Fund I USD LU0097977770 921243 MORUDII LX L6522V575 5691937 US Dollar Liquidity Fund IX USD LU0086462875 989046 MORUIXI LX L6522V518 5691915

ASSET ALLOCATION FUNDS

Global Diversified (Euro) Fund A EUR LU0137772256 806760 MORSGEA LX L65232248 7231535 Global Diversified (Euro) Fund B EUR LU0137772686 806761 MORSGEB LX L65232271 7231546 Global Diversified (Euro) Fund I EUR LU0137771878 806739 MORSGEI LX L65232263 7231513

68 Morgan Stanley SICAV Quarterly Report - March 2008 Fund codes

Share Base ASSET ALLOCATION FUNDS Class CCY ISIN Code WKN Bloomberg Cusip Sedol

Global Diversified (USD) Fund A USD LU0137770557 806763 MORSGEA LX L65232230 7231483 Global Diversified (USD) Fund B USD LU0137771100 806764 MORSGEB LX L65232222 7231502 Global Diversified (USD) Fund I USD LU0137767926 806762 MORSGUI LX L65232255 7231472

ALTERNATIVE FUNDS

Commodities Alpha Plus Fund A USD LU0299406735 A0MSBA MSCOAPA LX L65226752 B1XCCN6 Commodities Alpha Plus Fund AX USD LU0299416536 A0MSBD MSCOAAX LX L65226794 B1XCCR0 Commodities Alpha Plus Fund B USD LU0299415991 A0MSBB MSCOAPB LX L65226760 B1XCCP8 Commodities Alpha Plus Fund I USD LU0299411578 A0MSBC MSCOAPI LX L65226802 B1XCCQ9 Commodities Alpha Plus Fund IX USD LU0299416619 A0MSBE MSCOAIX LX L65226778 B1XCCS1 Commodities Alpha Plus Fund AH EUR LU0299411735 A0MSBF MSCOAAH LX L65226745 B1XCCT2 Commodities Alpha Plus Fund IH EUR LU0299411909 A0MSBG MSCOAIH LX L65226786 B1XCCV4

FX Alpha Plus RC 200 (Euro) Fund A EUR LU0283945276 A0MKYY MORATEA LX L65226661 B1NXRH8 FX Alpha Plus RC 200 (Euro) Fund B EUR LU0283945359 A0MKYZ MORATEB LX L65226737 B1NXRJ0 FX Alpha Plus RC 200 (Euro) Fund I EUR LU0283945516 A0MKY0 MORATEI LX L65226646 B1NXRK1 FX Alpha Plus RC 200 (Euro) Fund IX EUR LU0283945862 A0MKY1 MORATEX LX L65226638 B1NXRL2 FX Alpha Plus RC 200 (Euro) Fund AX EUR LU0283946167 A0MKY2 MORATAX LX L65226653 B1NXRM3

FX Alpha Plus RC 200 (Sterling) Fund A GBP LU0283957529 A0MK1X MORATSA LX L65226612 B1NXSG4 FX Alpha Plus RC 200 (Sterling) Fund B GBP LU0283957875 A0MK1W MORATSB LX L65226620 B1NXSH5 FX Alpha Plus RC 200 (Sterling) Fund I GBP LU0283958097 A0MK1Y MORATSI LX L65226596 B1NXSJ7 FX Alpha Plus RC 200 (Sterling) Fund IX GBP LU0283958253 A0MK1Z MORPSIX LX L65226604 B1NXSK8 FX Alpha Plus RC 200 (Sterling) Fund AX GBP LU0283958337 A0MK10 MORPSAX LX L65226588 B1NXSL9

FX Alpha Plus RC 200 (US Dollar) Fund A USD LU0283955234 A0MKZD MORATUA LX L65226539 B1NXRZ6 FX Alpha Plus RC 200 (US Dollar) Fund B USD LU0283955580 A0MKZE MORATUB LX L65226554 B1NXS08 FX Alpha Plus RC 200 (US Dollar) Fund I USD LU0283955663 A0MKZF MORATUI LX L65226570 B1NXS19 FX Alpha Plus RC 200 (US Dollar) Fund IX USD LU0283955747 A0MKZG MORAUIX LX L65226562 B1NXS20 FX Alpha Plus RC 200 (US Dollar) Fund AX USD LU0283955820 A0MKZH MORAUAX LX L65226547 B1NXS31

FX Alpha Plus RC 400 (Euro) Fund A EUR LU0283946597 A0MKY3 MORAFEA LX L65226497 B1NXRN4 FX Alpha Plus RC 400 (Euro) Fund B EUR LU0283946837 A0MKY4 MORAFEF LX L65226521 B1NXRP6 FX Alpha Plus RC 400 (Euro) Fund I EUR LU0283947058 A0MKY5 MORAFEI LX L65226505 B1NXRQ7 FX Alpha Plus RC 400 (Euro) Fund IX EUR LU0283947215 A0MKY6 MORAFIX LX L65226513 B1NXRR8 FX Alpha Plus RC 400 (Euro) Fund AX EUR LU0283947991 A0MKY7 MORAFAX LX L65226489 B1NXRS9

FX Alpha Plus RC 400 (Sterling) Fund A GBP LU0283958410 AOMK11 MORAFSA LX L65226471 B1NXSN1 FX Alpha Plus RC 400 (Sterling) Fund B GBP LU0283958683 A0MK12 MORAFSB LX L65226455 B1NXSP3 FX Alpha Plus RC 400 (Sterling) Fund I GBP LU0283958766 AOMK13 MORAFSI LX L65226463 B1NXSQ4 FX Alpha Plus RC 400 (Sterling) Fund IX GBP LU0283958923 A0MK14 MORRSIX LX L65226430 B1NXSR5 FX Alpha Plus RC 400 (Sterling) Fund AX GBP LU0283959061 A0MK15 MORRSAX LX L65226448 B1NXSS6

FX Alpha Plus RC 400 (US Dollar) Fund A USD LU0283956125 A0MK1L MORAFUA LX L65226406 B1NXS42 FX Alpha Plus RC 400 (US Dollar) Fund B USD LU0283956398 A0MK1M MORAFUB LX L65226398 B1NXS53 FX Alpha Plus RC 400 (US Dollar) Fund I USD LU0283956471 A0MK1N MORAFUI LX L65226414 B1NXS64 FX Alpha Plus RC 400 (US Dollar) Fund IX USD LU0283956554 A0MK1P MORFUIX LX L65226380 B1NXS75 FX Alpha Plus RC 400 (US Dollar) Fund AX USD LU0283956711 A0MK1Q MORFUAX LX L65226422 B1NXS86

FX Alpha Plus RC 800 (Euro) Fund A EUR LU0283948379 A0MKY8 MORPEEA LX L65226349 B1NXRT0 FX Alpha Plus RC 800 (Euro) Fund B EUR LU0283948882 A0MKY9 MORPEEB LX L65226364 B1NXRV2 FX Alpha Plus RC 800 (Euro) Fund I EUR LU0283949260 A0MKZA MORPEEI LX L65226372 B1NXRW3 FX Alpha Plus RC 800 (Euro) Fund IX EUR LU0283949427 A0MKZB MORPEIX LX L65226331 B1NXRX4 FX Alpha Plus RC 800 (Euro) Fund AX EUR LU0283949930 A0MKZC MORPEAX LX L65226356 B1NXRY5

FX Alpha Plus RC 800 (Sterling) Fund A GBP LU0283959145 A0MK16 MORPESA LX L65226307 B1NXST7 FX Alpha Plus RC 800 (Sterling) Fund B GBP LU0283959228 A0MK17 MORPESB LX L65226299 B1NXSV9 FX Alpha Plus RC 800 (Sterling) Fund I GBP LU0283959491 A0MK18 MORPESI LX L65226315 B1NXSW0 FX Alpha Plus RC 800 (Sterling) Fund IX GBP LU0283959731 A0MK19 MORFSIX LX L65226323 B1NXSX1 FX Alpha Plus RC 800 (Sterling) Fund AX GBP LU0283959814 A0MK2A MORFSAX LX L65226281 B1NXSY2

FX Alpha Plus RC 800 (US Dollar) Fund A USD LU0283956802 A0MK1R MORPEUA LX L65226257 B1NYPH7 FX Alpha Plus RC 800 (US Dollar) Fund B USD LU0283957107 A0MK1S MORPEUB LX L65226240 B1NXS97 FX Alpha Plus RC 800 (US Dollar) Fund I USD LU0283957289 A0MK1T MORPEUI LX L65226265 B1NXSC0 FX Alpha Plus RC 800 (US Dollar) Fund IX USD LU0283957362 A0MK1U MOROUIX LX L65226232 B1NXSD1 FX Alpha Plus RC 800 (US Dollar) Fund AX USD LU0283957446 A0MK1V MOROUAX LX L65226273 B1NXSF3

Morgan Stanley SICAV Quarterly Report - March 2008 69 Base currency total returns

Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum EQUITY FUNDS & INDICES Currency Launch date % % % % change change change

American Franchise Fund I USD Dec-05 0.08 (5.86) (5.86) (9.41) - - 2.66 American Franchise Fund A USD Dec-05 0.04 (6.01) (6.01) (10.10) - - American Franchise Fund B USD Dec-05 (0.08) (6.25) (6.25) (10.96) - - S&P 500 Index USD (0.43) (9.45) (9.45) (5.08) - - 4.58

American Franchise Fund AH EUR Oct-06 0.05 (6.02) (6.02) (10.88) - - (6.76) S&P 500 Index Euro Hedged EUR (4.50) (16.20) (16.20) (20.83) - - (15.82)

Asian Equity Fund I USD Oct-91 (6.12) (14.91) (14.91) 16.36 23.73 29.88 9.45 Asian Equity Fund A USD Feb-97 (6.17) (15.05) (15.05) 15.56 22.85 28.97 Asian Equity Fund B USD Jul-97 (6.26) (15.26) (15.26) 14.39 21.62 27.69 MSCI AC Far East Free ex Japan Index USD (5.29) (12.71) (12.71) 17.58 23.27 28.47 9.07

Asian Property Fund I USD Sep-97 (2.24) (14.09) (14.09) (12.27) 18.76 26.39 5.65 Asian Property Fund A USD Sep-97 (2.34) (14.24) (14.24) (12.90) 17.93 25.49 Asian Property Fund B USD Jul-99 (2.42) (14.46) (14.46) (13.75) 16.75 24.46 GPR General Quoted Asia Net Index USD (5.23) (15.61) (15.61) (11.88) 18.12 27.31 5.68

Emerging Europe, Middle East and North Africa Equity Fund I EUR Oct-00 (9.90) (17.18) (17.18) 1.33 26.30 36.50 14.96 Emerging Europe, Middle East and North Africa Equity Fund A EUR Oct-00 (9.95) (17.30) (17.30) 0.75 25.60 35.71 Emerging Europe, Middle East and North Africa Equity Fund B EUR Oct-00 (10.01) (17.49) (17.49) (0.16) 24.58 34.70 MSCI Emerging Europe and Middle East Index EUR (7.02) (18.94) (18.94) (4.88) 18.35 26.10 7.58

Emerging Markets Equity Fund I USD Jul-93 (7.20) (15.10) (15.10) 16.90 29.80 35.45 10.49 Emerging Markets Equity Fund A USD Feb-97 (7.24) (15.24) (15.24) 16.24 29.16 34.74 Emerging Markets Equity Fund B USD Jul-97 (7.31) (15.43) (15.43) 15.10 27.87 33.46 MSCI Emerging Markets Free (Net) Index USD (5.29) (10.99) (10.99) 21.33 29.23 35.53 10.20

European Equity Fund I EUR Mar-91 (4.63) (17.61) (17.61) (15.67) 4.83 11.31 8.58 European Equity Fund A EUR Feb-97 (4.70) (17.73) (17.73) (16.15) 4.14 10.59 European Equity Fund B EUR Jul-97 (4.75) (17.93) (17.93) (16.99) 3.11 9.49 MSCI Europe (Net) Index EUR (3.80) (15.68) (15.68) (15.84) 7.52 14.10 8.93

European Equity Opportunities Fund I EUR Dec-06 (5.79) (19.41) (19.41) (17.05) - - (12.68) European Equity Opportunities Fund A EUR Dec-06 (5.83) (19.56) (19.56) (17.63) - - European Equity Opportunities Fund B EUR Dec-06 (5.90) (19.75) (19.75) (18.43) - - MSCI Europe (Net) Index EUR (3.80) (15.68) (15.68) (15.84) - - (10.88)

European Equity Opportunities Fund IX EUR Dec-06 (5.72) (19.40) (19.40) (17.88) - - (13.44) European Equity Opportunities Fund AX EUR Dec-06 (5.79) (19.55) (19.55) (18.19) - - MSCI Europe (Net) Index EUR (3.80) (15.68) (15.68) (15.84) - - (10.88)

European Property Fund I EUR Sep-97 (4.16) (1.81) (1.81) (35.77) 6.72 17.63 9.63 European Property Fund A EUR Sep-97 (4.22) (2.00) (2.00) (36.25) 5.95 16.82 European Property Fund B EUR Jul-98 (4.31) (2.28) (2.28) (36.91) 4.88 15.65 GPR General Quoted Europe Net Index EUR (2.43) (2.95) (2.95) (32.18) 7.90 18.39 10.44

European Small Cap Value Fund I EUR Nov-01 (3.49) (13.06) (13.06) (21.81) 8.27 18.25 8.98 European Small Cap Value Fund A EUR Nov-01 (3.55) (13.23) (13.23) (22.38) 7.48 17.44 European Small Cap Value Fund B EUR Nov-01 (3.63) (13.44) (13.44) (23.15) 6.42 16.27 MSCI European Small Cap Index EUR (3.22) (12.54) (12.54) (24.06) 9.54 21.69 9.82

European Systematic Equity Fund I EUR Dec-05 (4.54) (16.56) (16.56) (18.35) - - (0.62) European Systematic Equity Fund A EUR Dec-05 (4.59) (16.67) (16.67) (18.75) - - MSCI Europe (Net) Index EUR (3.80) (15.68) (15.68) (15.84) - - 1.57

Eurozone Equity Opportunities Fund I EUR Apr-00 (3.66) (19.61) (19.61) (17.82) 5.65 10.20 (2.95) Eurozone Equity Opportunities Fund A EUR Apr-00 (3.71) (19.79) (19.79) (18.45) 5.00 9.55 Eurozone Equity Opportunities Fund B EUR Apr-00 (3.74) (20.00) (20.00) (19.28) 3.95 8.45 MSCI EMU (Net) Index EUR (2.66) (16.20) (16.20) (14.01) 8.50 14.72 (0.74)

Global Brands Fund I USD Oct-00 (0.81) (7.11) (7.11) (3.30) 10.19 16.57 12.17 Global Brands Fund A USD Oct-00 (0.89) (7.28) (7.28) (4.01) 9.40 15.75 Global Brands Fund B USD Oct-00 (0.96) (7.51) (7.51) (4.95) 8.31 14.61 MSCI World (Net) Index USD (0.96) (9.06) (9.06) (3.25) 9.64 15.96 3.23

Currency conversions are applied to reference currency NAVs to produce non-base currency performance.Currency conversions are made by Morningstar using the 4PM GMT WM Reuters Spot Rate.

70 Morgan Stanley SICAV Quarterly Report - March 2008 Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum EQUITY FUNDS & INDICES Currency Launch date % % % % change change change

Global Equity Growth Fund I USD Jul-06 (1.15) (10.45) (10.45) 2.65 - - 11.92 Global Equity Growth Fund A USD Jul-06 (1.23) (10.61) (10.61) 1.98 - - Global Equity Growth Fund B USD Jul-06 (1.31) (10.82) (10.82) 0.96 - - MSCI World (Net) Index USD (0.96) (9.06) (9.06) (3.25) - - 6.79

Global Equity Growth Fund IX USD Jul-06 (1.18) (10.49) (10.49) 2.25 - - 11.65 Global Equity Growth Fund AX USD Jul-06 (1.23) (10.58) (10.58) 1.91 - - MSCI World (Net) Index USD (0.96) (9.06) (9.06) (3.25) - - 6.79

Global Property Fund I USD Oct-06 0.73 (2.17) (2.17) (18.47) - - (4.30) Global Property Fund A USD Oct-06 0.65 (2.31) (2.31) (19.04) - - Global Property Fund B USD Oct-06 0.53 (2.59) (2.59) (19.85) - - FTSE EPRA/NAREIT Global Real Estate Index (Net, equal weighted) USD 0.51 (3.51) (3.51) (17.85) - - (3.33)

Global Property Fund IX USD Oct-06 0.70 (2.82) (2.82) (19.56) - - (5.40) Global Property Fund AX USD Oct-06 ------FTSE EPRA/NAREIT Global Real Estate Index (Net, equal weighted) USD 0.51 (3.51) (3.51) (17.85) - - (3.33)

Global Small Cap Value Fund I USD Mar-98 (0.11) (6.40) (6.40) (12.63) 7.31 18.68 8.58 Global Small Cap Value Fund A USD Mar-98 (0.15) (6.55) (6.55) (13.25) 6.55 17.88 Global Small Cap Value Fund B USD Mar-98 (0.25) (6.78) (6.78) (14.11) 5.50 16.74 MSCI World Small Cap Index USD (1.01) (8.13) (8.13) (11.93) 8.04 20.57 8.09

Global Systematic Equity Fund I USD Jul-00 (2.80) (11.38) (11.38) (8.82) 6.89 13.10 1.05 Global Systematic Equity Fund A USD Jul-00 (2.83) (11.48) (11.48) (9.23) 6.41 12.56 Global Systematic Equity Fund B USD Jul-00 (2.90) (11.70) (11.70) (10.13) 5.36 11.42 MSCI World (Net) Index USD (0.96) (9.06) (9.06) (3.25) 9.64 15.96 2.59

Global Value Equity Fund I USD Nov-89 (2.33) (10.70) (10.70) (6.70) 7.24 15.35 9.02 Global Value Equity Fund A USD Feb-97 (2.39) (10.84) (10.84) (7.37) 6.48 14.55 Global Value Equity Fund B USD Apr-97 (2.47) (11.08) (11.08) (8.31) 5.41 13.41 MSCI World (Net) Index USD (0.96) (9.06) (9.06) (3.25) 9.64 15.96 7.08

Indian Equity Fund I USD Nov-06 (11.06) (28.73) (28.73) 21.66 - - 12.06 Indian Equity Fund A USD Nov-06 (11.11) (28.86) (28.86) 20.75 - - Indian Equity Fund B USD Nov-06 (11.18) (29.03) (29.03) 19.55 - - MSCI India Blend Index USD (12.68) (26.99) (26.99) 30.64 - - 21.98

Indian Equity Fund IX USD Nov-06 ------Indian Equity Fund AX USD Nov-06 ------MSCI India Blend Index USD ------1.30

Japanese Equity Advantage Fund I JPY May-06 (2.14) (15.35) (15.35) (22.54) - - (10.48) Japanese Equity Advantage Fund A JPY May-06 (2.20) (15.48) (15.48) (23.04) - - Japanese Equity Advantage Fund B JPY May-06 (2.28) (15.69) (15.69) (23.82) - - TOPIX Index JPY (7.55) (17.01) (17.01) (28.06) - - (12.11)

Japanese Equity Advantage Fund IX JPY May-06 ------Japanese Equity Advantage Fund AX JPY May-06 ------TOPIX Index JPY ------0.79

Japanese Equity Advantage Fund AH EUR Oct-06 (2.08) (15.75) (15.75) (22.01) - - (13.57) Topix Euro Hedged Benchmark (Total Return) EUR ------

Japanese Equity Growth Fund I JPY Jul-00 (4.26) (18.71) (18.71) (30.78) (3.72) 7.63 (3.83) Japanese Equity Growth Fund A JPY Jul-00 (4.32) (18.86) (18.86) (31.28) (4.41) 6.88 Japanese Equity Growth Fund B JPY Jul-00 (4.39) (19.05) (19.05) (31.91) (5.33) 5.93 TOPIX Index JPY (7.55) (17.01) (17.01) (28.06) 2.18 10.33 (1.19)

Japanese Systematic Equity Fund I JPY Jul-06 (5.73) (15.87) (15.87) (29.09) - - (12.72) Japanese Systematic Equity Fund A JPY Jul-06 (5.77) (15.97) (15.97) (29.42) - - TOPIX Index JPY (7.55) (17.01) (17.01) (28.06) - - (13.00)

Currency conversions are applied to reference currency NAVs to produce non-base currency performance.Currency conversions are made by Morningstar using the 4PM GMT WM Reuters Spot Rate.

Morgan Stanley SICAV Quarterly Report - March 2008 71 Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum EQUITY FUNDS & INDICES Currency Launch date % % % % change change change

Japanese Systematic Equity Fund IX JPY Jul-06 ------Japanese Systematic Equity Fund AX JPY Jul-06 ------TOPIX Index JPY ------0.79

Japanese Value Equity Fund I JPY May-93 (6.03) (16.62) (16.62) (24.23) 5.48 11.08 0.77 Japanese Value Equity Fund A JPY Feb-97 (6.09) (16.77) (16.77) (24.78) 4.71 10.30 Japanese Value Equity Fund B JPY Jun-97 (6.17) (16.98) (16.98) (25.54) 3.66 9.20 TOPIX Index JPY (7.55) (17.01) (17.01) (28.06) 2.18 10.33 (1.03)

Latin American Equity Fund I USD Aug-94 (7.22) (4.64) (4.64) 24.78 44.28 47.87 15.41 Latin American Equity Fund A USD Feb-97 (7.28) (4.81) (4.81) 23.94 43.32 46.91 Latin American Equity Fund B USD Jun-97 (7.36) (5.05) (5.05) 22.71 41.88 45.44 MSCI EM Latin America Index USD (3.39) (1.43) (1.43) 39.84 46.02 50.37 13.90

US Equity Fund I USD Dec-01 (2.09) (9.74) (9.74) (4.03) 4.58 10.23 2.29 US Equity Fund A USD Dec-01 (2.11) (9.86) (9.86) (5.79) 3.56 9.43 US Equity Fund B USD Dec-01 (2.21) (10.10) (10.10) (6.77) 2.51 8.34 S&P 500 Index USD (0.43) (9.45) (9.45) (5.08) 5.85 11.32 4.16

US Equity Growth Fund I USD Aug-92 (1.93) (12.02) (12.02) 3.29 10.31 11.29 8.88 US Equity Growth Fund A USD Feb-97 (1.99) (12.19) (12.19) 2.52 9.45 10.47 US Equity Growth Fund B USD Jun-97 (2.08) (12.39) (12.39) 1.48 8.36 9.37 Russell 1000 Growth Net 30% Withholding Tax TR Index USD (0.64) (10.26) (10.26) (1.10) 5.96 9.59 7.57

US Equity Growth Fund AH EUR Oct-06 (1.93) (12.74) (12.74) (0.15) - - 2.17 Russell 1000 Growth Index Euro Hedged EUR (0.49) (9.92) (9.92) (3.12) - - (0.30)

US Property Fund I USD Jan-96 5.87 5.24 5.24 (16.58) 13.23 19.98 13.87 US Property Fund A USD Feb-97 5.81 5.07 5.07 (17.17) 12.43 19.15 US Property Fund B USD Mar-97 5.72 4.79 4.79 (18.03) 11.30 17.97 FTSE NAREIT Equity REITs (Net) Index USD 6.06 1.04 1.04 (18.46) 10.21 16.59 10.86

US Small Cap Growth Fund I USD Aug-91 (1.24) (12.22) (12.22) (11.52) 4.52 14.52 9.42 US Small Cap Growth Fund A USD Feb-97 (1.31) (12.35) (12.35) (12.15) 3.78 13.73 US Small Cap Growth Fund B USD Jun-97 (1.40) (12.58) (12.58) (13.03) 2.74 12.58 Russell 2000 Growth Net 30% Withholding Tax TR Index USD (0.60) (12.87) (12.87) (9.09) 5.58 14.07 6.39

US Systematic Equity Fund I USD May-06 (3.52) (13.36) (13.36) (9.79) - - 1.73 US Systematic Equity Fund A USD May-06 (3.58) (13.49) (13.49) (10.21) - - S&P 500 (Net) Index USD (0.48) (9.59) (9.59) (5.63) - - 3.61

US Systematic Equity Fund IX USD May-06 (3.55) (13.61) (13.61) (10.28) - - 1.24 US Systematic Equity Fund AX USD May-06 (3.55) (13.51) (13.51) (10.29) - - S&P 500 (Net) Index USD (0.48) (9.59) (9.59) (5.63) - - 3.61

US Value Equity Fund I USD Jul-99 (3.86) (9.09) (9.09) (12.60) 2.66 11.18 1.60 US Value Equity Fund A USD Jul-99 (3.86) (9.25) (9.25) (13.27) 1.88 10.36 US Value Equity Fund B USD Jul-99 (3.98) (9.47) (9.47) (14.13) 0.87 9.25 S&P 500 Index USD (0.43) (9.45) (9.45) (5.08) 5.85 11.32 1.61

US Value Equity Fund AH EUR Oct-06 (3.73) (10.31) (10.31) (14.90) - - (9.13) S&P 500 Index Euro Hedged EUR (4.50) (16.20) (16.20) (20.83) - - (15.82)

BOND FUNDS & INDICES

Emerging Markets Debt Fund I USD Apr-95 0.03 0.71 0.71 4.93 10.74 11.96 14.26 Emerging Markets Debt Fund A USD Feb-97 0.00 0.58 0.58 4.33 10.12 11.31 Emerging Markets Debt Fund B USD Jul-97 (0.10) 0.32 0.32 3.28 9.02 10.20 JPM Emerging Markets Bond Index Global USD (0.04) 0.63 0.63 4.45 9.64 11.38 13.47

Currency conversions are applied to reference currency NAVs to produce non-base currency performance.Currency conversions are made by Morningstar using the 4PM GMT WM Reuters Spot Rate.

72 Morgan Stanley SICAV Quarterly Report - March 2008 Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum BOND FUNDS & INDICES Currency Launch date % % % % change change change

Emerging Markets Debt Fund AH EUR Oct-06 0.09 0.57 0.57 3.09 - - 4.59 JPM Emerging Markets Bond Index Global Euro Hedged EUR 0.07 0.78 0.78 3.59 - - 5.12

Emerging Markets Domestic Debt Fund I USD Feb-07 (0.52) 2.00 2.00 11.54 - - 13.22 Emerging Markets Domestic Debt Fund A USD Feb-07 (0.56) 1.86 1.86 10.92 - - Emerging Markets Domestic Debt Fund B USD Feb-07 (0.67) 1.59 1.59 9.80 - - JPM GBI - EM Global Diversified USD (0.88) 2.24 2.24 16.48 - - 18.39

Emerging Markets Domestic Debt Fund IX USD Feb-07 (0.51) (2.49) (2.49) 5.54 - - 7.58 Emerging Markets Domestic Debt Fund AX USD Feb-07 (0.59) (2.20) (2.20) 5.58 - - JPM GBI - EM Global Diversified USD (0.88) 2.24 2.24 16.48 - - 18.39

Euro Bond Fund I EUR Dec-98 (1.05) 1.44 1.44 1.99 1.72 3.01 3.54 Euro Bond Fund A EUR Dec-98 (1.01) 1.32 1.32 1.70 1.30 2.59 Euro Bond Fund B EUR Dec-98 (1.12) 1.04 1.04 0.62 0.31 1.55 Lehman Euro-Aggregate Index EUR (0.77) 1.85 1.85 3.00 2.27 3.60 4.28

Euro Corporate Bond Fund I EUR Sep-01 (2.12) (1.69) (1.69) (3.39) 0.35 3.04 3.63 Euro Corporate Bond Fund A EUR Sep-01 (2.19) (1.81) (1.81) (3.82) (0.08) 2.61 Euro Corporate Bond Fund B EUR Sep-01 (2.26) (2.06) (2.06) (4.77) (1.08) 1.59 Lehman Euro-Aggregate: Corporate Index EUR (1.66) (0.32) (0.32) (1.06) 1.00 3.31 4.38

Euro Strategic Bond Fund I EUR Feb-91 (1.83) 0.20 0.20 (0.23) 0.97 2.82 6.66 Euro Strategic Bond Fund A EUR Feb-97 (1.85) 0.10 0.10 (0.66) 0.56 2.40 Euro Strategic Bond Fund B EUR Sep-97 (1.94) (0.15) (0.15) (1.64) (0.45) 1.38 Lehman Euro-Aggregate Index EUR (0.77) 1.85 1.85 3.00 2.27 3.60 7.29

Euro Total Return Bond Fund I EUR Mar-07 (2.33) (2.33) (2.33) (3.19) - - (3.19) Euro Total Return Bond Fund A EUR Mar-07 (2.38) (2.42) (2.42) (3.55) - - Euro Total Return Bond Fund B EUR Mar-07 (2.45) (2.64) (2.64) (4.51) - - One Month Euribor Index EUR 0.35 1.05 1.05 4.31 - - 4.31

Euro Total Return Bond Fund IX EUR Mar-07 (2.34) (4.84) (4.84) (6.58) - - (6.58) Euro Total Return Bond Fund AX EUR Mar-07 (2.38) (4.76) (4.76) (6.66) - - One Month Euribor Index EUR 0.35 1.05 1.05 4.31 - - 4.31

European Currencies High Yield Bond Fund I EUR Dec-98 (0.42) (5.24) (5.24) (7.08) 2.00 7.36 (2.71) European Currencies High Yield Bond Fund A EUR Dec-98 (0.35) (5.30) (5.30) (7.45) 1.60 6.89 European Currencies High Yield Bond Fund B EUR Dec-98 (0.48) (5.57) (5.57) (8.41) 0.55 5.83 ML European Currency Constrained High Yield Index EUR (0.22) (6.20) (6.20) (9.64) 1.94 7.99 1.88

Global Bond Fund I USD Nov-89 2.40 8.07 8.07 16.72 5.98 7.57 6.95 Global Bond Fund A USD Feb-97 2.33 7.92 7.92 16.18 5.54 7.09 Global Bond Fund B USD Jun-97 2.29 7.70 7.70 15.05 4.49 6.03 Citigroup World Government Bond Index USD 3.22 9.66 9.66 20.28 7.26 8.10 7.79

Global Convertible Bond (Euro) Fund I EUR Jul-02 (2.59) (5.27) (5.27) (2.56) 3.58 5.25 5.25 Global Convertible Bond (Euro) Fund A EUR Jul-02 (2.62) (5.37) (5.37) (2.99) 3.10 4.76 Global Convertible Bond (Euro) Fund B EUR Jul-02 (2.71) (5.61) (5.61) (3.95) 2.09 3.71 Merrill Lynch G300 Global Convertible Index Euro Hedged EUR (2.48) (6.07) (6.07) (2.55) 6.72 6.97 7.07

Global Convertible Bond (USD) Fund I USD Jul-02 (2.77) (5.29) (5.29) (1.60) 5.31 6.27 6.64 Global Convertible Bond (USD) Fund A USD Jul-02 (2.81) (5.39) (5.39) (2.08) 4.83 5.79 Global Convertible Bond (USD) Fund B USD Jul-02 (2.88) (5.61) (5.61) (3.03) 3.80 4.74 Merrill Lynch G300 Global Convertible Index USD Hedged USD (2.70) (6.49) (6.49) (2.74) 7.57 7.48 7.52

Short Maturity Euro Bond Fund I EUR Aug-94 (0.70) 1.05 1.05 2.86 1.91 2.16 4.69 Short Maturity Euro Bond Fund A EUR Feb-97 (0.68) 0.92 0.92 2.40 1.49 1.74 Short Maturity Euro Bond Fund B EUR Oct-98 (0.81) 0.70 0.70 1.40 0.49 0.73 Lehman Euro-Aggregate: Treasury 1-3 Years Index EUR (0.33) 1.57 1.57 4.68 2.86 2.93 5.41

US Bond Fund I USD Aug-92 (5.90) (7.16) (7.16) (3.67) 1.50 2.14 5.03 US Bond Fund A USD Feb-97 (5.96) (7.32) (7.32) (4.11) 1.06 1.70 US Bond Fund B USD Sep-97 (6.01) (7.51) (7.51) (5.04) 0.05 0.70 Lehman Brothers Aggregate Index USD 0.34 2.17 2.17 7.67 5.48 4.58 6.47

Currency conversions are applied to reference currency NAVs to produce non-base currency performance.Currency conversions are made by Morningstar using the 4PM GMT WM Reuters Spot Rate.

Morgan Stanley SICAV Quarterly Report - March 2008 73 Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum BOND FUNDS & INDICES Currency Launch date % % % % change change change

US Dollar Short Duration Fund I USD Jul-02 0.09 0.53 0.53 3.14 3.58 2.57 2.47 US Dollar Short Duration Fund A USD Jul-02 0.09 0.36 0.36 2.75 3.13 2.13 US Dollar Short Duration Fund B USD Jul-02 (0.09) 0.09 0.09 1.63 2.10 1.11 3 Month US LIBOR Index USD 0.29 0.61 0.61 4.78 4.75 3.46 3.23

LIQUIDITY FUNDS & INDICES

Euro Liquidity Fund I EUR Jan-00 0.32 1.00 1.00 3.92 2.85 2.43 2.93 Euro Liquidity Fund A EUR Jan-00 0.30 0.96 0.96 3.76 2.69 2.26 Euro Liquidity Fund B EUR Jan-00 0.24 0.77 0.77 2.98 1.93 1.50 1 Month Euro LIBID Index EUR 0.36 1.04 1.04 4.24 3.19 2.72 3.14

US Dollar Liquidity Fund I USD Jun-99 0.27 0.94 0.94 4.75 4.38 3.03 3.33 US Dollar Liquidity Fund A USD Jul-99 0.24 0.87 0.87 4.37 3.98 2.63 US Dollar Liquidity Fund B USD Sep-99 0.18 0.70 0.70 4.15 3.91 2.58 Citi 3 Month US T-bill Index USD 0.20 0.71 0.71 4.32 4.28 3.07 3.41

US Dollar Liquidity Fund IX USD Mar-98 0.27 0.94 0.94 4.71 4.36 3.02 3.51 US Dollar Liquidity Fund AX USD May-98 0.24 0.87 0.87 4.33 3.96 2.62 US Dollar Liquidity Fund BX USD Dec-98 0.18 0.70 0.70 4.11 3.89 2.57 Citi 3 Month US T-bill Index USD 0.20 0.71 0.71 4.32 4.28 3.07 3.57

ASSET ALLOCATION FUNDS & INDICES

Global Diversified (Euro) Fund I EUR Dec-01 (4.78) (8.76) (8.76) (8.67) 1.82 5.73 2.36 Global Diversified (Euro) Fund A EUR Dec-01 (4.82) (8.89) (8.89) (9.22) 1.24 5.13 Global Diversified (Euro) Fund B EUR May-02 (4.89) (9.13) (9.13) (10.11) 0.23 4.09 50% MSCI World Index / 50% JPM Global Government Bond Index EUR (3.15) (7.72) (7.72) (9.18) 1.68 4.05 (0.47)

Global Diversified (USD) Fund I USD Dec-01 (3.59) (7.25) (7.25) (4.17) 4.31 9.11 5.74 Global Diversified (USD) Fund A USD Dec-01 (3.64) (7.39) (7.39) (4.71) 3.69 8.48 Global Diversified (USD) Fund B USD Jul-02 (3.72) (7.60) (7.60) (5.64) 2.70 7.43 50% MSCI World Index / 50% JPM Global Government Bond Index USD 1.09 0.02 0.02 8.11 8.63 12.11 9.14

ALTERNATIVE FUNDS & INDICES

FX Alpha Plus RC 200 (Euro) Fund I EUR Feb-07 0.04 (0.15) (0.15) 2.83 - - 3.14 FX Alpha Plus RC 200 (Euro) Fund A EUR Feb-07 0.04 (0.23) (0.23) 2.47 - - FX Alpha Plus RC 200 (Euro) Fund B EUR Feb-07 (0.08) (0.47) (0.47) 1.43 - - Euro Overnight Index Average (EONIA) EUR 0.34 1.01 1.01 4.14 - - 4.11

FX Alpha Plus RC 200 (Euro) Fund IX EUR Feb-07 ------FX Alpha Plus RC 200 (Euro) Fund AX EUR Feb-07 ------Euro Overnight Index Average (EONIA) EUR ------1.04

FX Alpha Plus RC 200 (US Dollar) Fund I USD Feb-07 (0.23) (0.50) (0.50) 3.54 - - 3.98 FX Alpha Plus RC 200 (US Dollar) Fund A USD Feb-07 (0.08) (0.38) (0.38) 3.42 - - FX Alpha Plus RC 200 (US Dollar) Fund B USD Feb-07 ------Overnight USD LIBOR Index USD 0.26 0.87 0.87 4.93 - - 4.97

FX Alpha Plus RC 200 (US Dollar) Fund IX USD Feb-07 ------FX Alpha Plus RC 200 (US Dollar) Fund AX USD Feb-07 - (3.25) (3.25) (0.72) - - Overnight USD LIBOR Index USD ------1.05

Currency conversions are applied to reference currency NAVs to produce non-base currency performance.Currency conversions are made by Morningstar using the 4PM GMT WM Reuters Spot Rate.

74 Morgan Stanley SICAV Quarterly Report - March 2008 Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum ALTERNATIVE FUNDS & INDICES Currency Launch date % % % % change change change

FX Alpha Plus RC 400 (Euro) Fund I EUR Feb-07 (0.19) (1.15) (1.15) 2.26 - - 2.99 FX Alpha Plus RC 400 (Euro) Fund A EUR Feb-07 (0.23) (1.31) (1.31) 1.75 - - FX Alpha Plus RC 400 (Euro) Fund B EUR Feb-07 (0.31) (1.55) (1.55) 0.72 - - Euro Overnight Index Average (EONIA) EUR 0.34 1.01 1.01 4.14 - - 4.11

FX Alpha Plus RC 400 (Euro) Fund IX EUR Feb-07 ------FX Alpha Plus RC 400 (Euro) Fund AX EUR Feb-07 - (3.25) (3.25) (0.68) - - Euro Overnight Index Average (EONIA) EUR ------1.04

FX Alpha Plus RC 400 (US Dollar) Fund I USD Feb-07 (0.19) (1.29) (1.29) 2.73 - - 3.51 FX Alpha Plus RC 400 (US Dollar) Fund A USD Feb-07 (0.23) (1.38) (1.38) 2.30 - - FX Alpha Plus RC 400 (US Dollar) Fund B USD Feb-07 ------Overnight USD LIBOR Index USD 0.26 0.87 0.87 4.93 - - 4.97

FX Alpha Plus RC 400 (US Dollar) Fund IX USD Feb-07 (0.20) (1.88) (1.88) 1.11 - - 1.99 FX Alpha Plus RC 400 (US Dollar) Fund AX USD Feb-07 - (3.55) (3.55) (0.83) - - Overnight USD LIBOR Index USD 0.26 0.87 0.87 4.93 - - 4.97

FX Alpha Plus RC 800 (Euro) Fund I EUR Feb-07 (0.66) (3.14) (3.14) 1.18 - - 2.55 FX Alpha Plus RC 800 (Euro) Fund A EUR Feb-07 (0.74) (3.26) (3.26) 0.71 - - FX Alpha Plus RC 800 (Euro) Fund B EUR Feb-07 (0.83) (3.52) (3.52) (0.32) - - Euro Overnight Index Average (EONIA) EUR 0.34 1.01 1.01 4.14 - - 4.11

FX Alpha Plus RC 800 (Euro) Fund IX EUR Feb-07 (0.68) (6.84) (6.84) (2.65) - - (1.04) FX Alpha Plus RC 800 (Euro) Fund AX EUR Feb-07 (0.74) (3.91) (3.91) 0.08 - - Euro Overnight Index Average (EONIA) EUR 0.34 1.01 1.01 4.14 - - 4.11

FX Alpha Plus RC 800 (Sterling) Fund I GBP Feb-07 (0.61) (2.82) (2.82) 3.15 - - 4.55 FX Alpha Plus RC 800 (Sterling) Fund A GBP Feb-07 (0.62) (2.96) (2.96) - - - FX Alpha Plus RC 800 (Sterling) Fund B GBP Feb-07 ------Overnight GBP LIBOR Index GBP 0.48 1.39 1.39 5.92 - - 5.88

FX Alpha Plus RC 800 (Sterling) Fund IX GBP Feb-07 (0.59) (4.69) (4.69) 0.16 - - 1.74 FX Alpha Plus RC 800 (Sterling) Fund AX GBP Feb-07 ------Overnight GBP LIBOR Index GBP 0.48 1.39 1.39 5.92 - - 5.88

FX Alpha Plus RC 800 (US Dollar) Fund I USD Feb-07 (0.80) (3.31) (3.31) 2.44 - - 3.96 FX Alpha Plus RC 800 (US Dollar) Fund A USD Feb-07 (0.85) (3.45) (3.45) 1.58 - - FX Alpha Plus RC 800 (US Dollar) Fund B USD Feb-07 ------Overnight USD LIBOR Index USD 0.26 0.87 0.87 4.93 - - 4.97

FX Alpha Plus RC 800 (US Dollar) Fund IX USD Feb-07 ------FX Alpha Plus RC 800 (US Dollar) Fund AX USD Feb-07 - (6.18) (6.18) (1.77) - - Overnight USD LIBOR Index USD ------1.05

Morgan Stanley SICAV Quarterly Report - March 2008 75 Euro total returns

Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum EQUITY FUNDS & INDICES Launch date % % % % change change change

American Franchise Fund I Dec-05 (4.12) (13.14) (13.14) (23.89) - - (9.96) American Franchise Fund A Dec-05 (4.16) (13.28) (13.28) (24.48) - - American Franchise Fund B Dec-05 (4.27) (13.50) (13.50) (25.20) - - S&P 500 Index (4.61) (16.45) (16.45) (20.26) - - (8.27)

American Franchise Fund AH Oct-06 0.05 (6.02) (6.02) (10.88) - - (6.76) S&P 500 Index Euro Hedged (4.50) (16.20) (16.20) (20.83) - - (15.82)

Asian Equity Fund I Oct-91 (10.06) (21.49) (21.49) (2.25) 15.82 20.55 7.75 Asian Equity Fund A Feb-97 (10.10) (21.61) (21.61) (2.92) 15.00 19.70 Asian Equity Fund B Jul-97 (10.19) (21.82) (21.82) (3.91) 13.85 18.51 MSCI AC Far East Free ex Japan Index (9.26) (19.46) (19.46) (1.22) 15.39 19.23 7.38

Asian Property Fund I Sep-97 (6.34) (20.73) (20.73) (26.30) 11.16 17.31 2.13 Asian Property Fund A Sep-97 (6.44) (20.87) (20.87) (26.83) 10.39 16.47 Asian Property Fund B Jul-99 (6.51) (21.07) (21.07) (27.55) 9.29 15.51 GPR General Quoted Asia Net Index (9.21) (22.13) (22.13) (25.98) 10.57 18.15 2.16

Emerging Europe, Middle East and North Africa Equity Fund I Oct-00 (9.90) (17.18) (17.18) 1.33 26.30 36.50 14.96 Emerging Europe, Middle East and North Africa Equity Fund A Oct-00 (9.95) (17.30) (17.30) 0.75 25.60 35.71 Emerging Europe, Middle East and North Africa Equity Fund B Oct-00 (10.01) (17.49) (17.49) (0.16) 24.58 34.70 MSCI Emerging Europe and Middle East Index (7.02) (18.94) (18.94) (4.88) 18.35 26.10 7.58

Emerging Markets Equity Fund I Jul-93 (11.09) (21.67) (21.67) (1.80) 21.50 25.71 7.68 Emerging Markets Equity Fund A Feb-97 (11.13) (21.80) (21.80) (2.35) 20.90 25.05 Emerging Markets Equity Fund B Jul-97 (11.19) (21.97) (21.97) (3.31) 19.70 23.87 MSCI Emerging Markets Free (Net) Index (9.26) (17.87) (17.87) 1.93 20.97 25.79 7.40

European Equity Fund I Mar-91 (4.63) (17.61) (17.61) (15.67) 4.83 11.31 8.58 European Equity Fund A Feb-97 (4.70) (17.73) (17.73) (16.15) 4.14 10.59 European Equity Fund B Jul-97 (4.75) (17.93) (17.93) (16.99) 3.11 9.49 MSCI Europe (Net) Index (3.80) (15.68) (15.68) (15.84) 7.52 14.10 8.93

European Equity Opportunities Fund I Dec-06 (5.79) (19.41) (19.41) (17.05) - - (12.68) European Equity Opportunities Fund A Dec-06 (5.83) (19.56) (19.56) (17.63) - - European Equity Opportunities Fund B Dec-06 (5.90) (19.75) (19.75) (18.43) - - MSCI Europe (Net) Index (3.80) (15.68) (15.68) (15.84) - - (10.88)

European Equity Opportunities Fund IX Dec-06 (5.72) (19.40) (19.40) (17.88) - - (13.44) European Equity Opportunities Fund AX Dec-06 (5.79) (19.55) (19.55) (18.19) - - MSCI Europe (Net) Index (3.80) (15.68) (15.68) (15.84) - - (10.88)

European Property Fund I Sep-97 (4.16) (1.81) (1.81) (35.77) 6.72 17.63 9.63 European Property Fund A Sep-97 (4.22) (2.00) (2.00) (36.25) 5.95 16.82 European Property Fund B Jul-98 (4.31) (2.28) (2.28) (36.91) 4.88 15.65 GPR General Quoted Europe Net Index (2.43) (2.95) (2.95) (32.18) 7.90 18.39 10.44

European Small Cap Value Fund I Nov-01 (3.49) (13.06) (13.06) (21.81) 8.27 18.25 8.98 European Small Cap Value Fund A Nov-01 (3.55) (13.23) (13.23) (22.38) 7.48 17.44 European Small Cap Value Fund B Nov-01 (3.63) (13.44) (13.44) (23.15) 6.42 16.27 MSCI European Small Cap Index (3.22) (12.54) (12.54) (24.06) 9.54 21.69 9.82

European Systematic Equity Fund I Dec-05 (4.54) (16.56) (16.56) (18.35) - - (0.62) European Systematic Equity Fund A Dec-05 (4.59) (16.67) (16.67) (18.75) - - MSCI Europe (Net) Index (3.80) (15.68) (15.68) (15.84) - - 1.57

Eurozone Equity Opportunities Fund I Apr-00 (3.66) (19.61) (19.61) (17.82) 5.65 10.20 (2.95) Eurozone Equity Opportunities Fund A Apr-00 (3.71) (19.79) (19.79) (18.45) 5.00 9.55 Eurozone Equity Opportunities Fund B Apr-00 (3.74) (20.00) (20.00) (19.28) 3.95 8.45 MSCI EMU (Net) Index (2.66) (16.20) (16.20) (14.01) 8.50 14.72 (0.74)

Global Brands Fund I Oct-00 (4.97) (14.29) (14.29) (18.77) 3.15 8.19 3.09 Global Brands Fund A Oct-00 (5.05) (14.45) (14.45) (19.36) 2.41 7.43 Global Brands Fund B Oct-00 (5.11) (14.66) (14.66) (20.15) 1.39 6.37 MSCI World (Net) Index (5.11) (16.09) (16.09) (18.73) 2.63 7.62 (5.12)

Currency conversions are applied to reference currency NAVs to produce non-base currency performance.Currency conversions are made by Morningstar using the 4PM GMT WM Reuters Spot Rate.

76 Morgan Stanley SICAV Quarterly Report - March 2008 Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum EQUITY FUNDS & INDICES Launch date % % % % change change change

Global Equity Growth Fund I Jul-06 (5.29) (17.37) (17.37) (13.76) - - (1.71) Global Equity Growth Fund A Jul-06 (5.37) (17.52) (17.52) (14.33) - - Global Equity Growth Fund B Jul-06 (5.45) (17.72) (17.72) (15.18) - - MSCI World (Net) Index (5.11) (16.09) (16.09) (18.73) - - (6.22)

Global Equity Growth Fund IX Jul-06 (5.33) (17.41) (17.41) (14.11) - - (1.95) Global Equity Growth Fund AX Jul-06 (5.37) (17.50) (17.50) (14.38) - - MSCI World (Net) Index (5.11) (16.09) (16.09) (18.73) - - (6.22)

Global Property Fund I Oct-06 (3.50) (9.73) (9.73) (31.51) - - (17.85) Global Property Fund A Oct-06 (3.57) (9.86) (9.86) (31.99) - - Global Property Fund B Oct-06 (3.69) (10.12) (10.12) (32.67) - - FTSE EPRA/NAREIT Global Real Estate Index (Net, equal weighted) (3.71) (10.97) (10.97) (30.99) - - (17.02)

Global Property Fund IX Oct-06 (3.53) (10.33) (10.33) (32.43) - - (18.79) Global Property Fund AX Oct-06 ------FTSE EPRA/NAREIT Global Real Estate Index (Net, equal weighted) (3.71) (10.97) (10.97) (30.99) - - (17.02)

Global Small Cap Value Fund I Mar-98 (4.30) (13.64) (13.64) (26.60) 0.45 10.15 4.45 Global Small Cap Value Fund A Mar-98 (4.33) (13.77) (13.77) (27.12) (0.26) 9.40 Global Small Cap Value Fund B Mar-98 (4.44) (13.99) (13.99) (27.85) (1.25) 8.35 MSCI World Small Cap Index (5.16) (15.23) (15.23) (26.02) 1.14 11.90 3.98

Global Systematic Equity Fund I Jul-00 (6.88) (18.23) (18.23) (23.40) 0.06 4.97 (5.78) Global Systematic Equity Fund A Jul-00 (6.91) (18.33) (18.33) (23.75) (0.39) 4.46 Global Systematic Equity Fund B Jul-00 (6.97) (18.53) (18.53) (24.50) (1.38) 3.41 MSCI World (Net) Index (5.11) (16.09) (16.09) (18.73) 2.63 7.62 (4.35)

Global Value Equity Fund I Nov-89 (6.42) (17.61) (17.61) (21.62) 0.38 7.06 7.08 Global Value Equity Fund A Feb-97 (6.48) (17.73) (17.73) (22.19) (0.33) 6.32 Global Value Equity Fund B Apr-97 (6.56) (17.95) (17.95) (22.97) (1.33) 5.26 MSCI World (Net) Index (5.11) (16.09) (16.09) (18.73) 2.63 7.62 5.18

Indian Equity Fund I Nov-06 (14.79) (34.24) (34.24) 2.20 - - (1.98) Indian Equity Fund A Nov-06 (14.84) (34.36) (34.36) 1.44 - - Indian Equity Fund B Nov-06 (14.91) (34.52) (34.52) 0.43 - - MSCI India Blend Index (16.34) (32.63) (32.63) 9.74 - - 6.70

Indian Equity Fund IX Nov-06 ------Indian Equity Fund AX Nov-06 ------MSCI India Blend Index ------1.09

Japanese Equity Advantage Fund I May-06 (1.94) (12.34) (12.34) (22.81) - - (14.81) Japanese Equity Advantage Fund A May-06 (2.00) (12.48) (12.48) (23.31) - - Japanese Equity Advantage Fund B May-06 (2.08) (12.69) (12.69) (24.08) - - TOPIX Index (7.36) (14.05) (14.05) (28.30) - - (16.37)

Japanese Equity Advantage Fund IX May-06 ------Japanese Equity Advantage Fund AX May-06 ------TOPIX Index ------0.72

Japanese Equity Advantage Fund AH Oct-06 (2.08) (15.75) (15.75) (22.01) - - (13.57) Topix Euro Hedged Benchmark (Total Return) ------

Japanese Equity Growth Fund I Jul-00 (4.06) (15.82) (15.82) (31.02) (7.69) 3.46 (9.20) Japanese Equity Growth Fund A Jul-00 (4.12) (15.97) (15.97) (31.52) (8.35) 2.73 Japanese Equity Growth Fund B Jul-00 (4.19) (16.17) (16.17) (32.14) (9.23) 1.81 TOPIX Index (7.36) (14.05) (14.05) (28.30) (2.03) 6.05 (6.71)

Japanese Systematic Equity Fund I Jul-06 (5.54) (12.87) (12.87) (29.34) - - (16.66) Japanese Systematic Equity Fund A Jul-06 (5.57) (12.98) (12.98) (29.66) - - TOPIX Index (7.36) (14.05) (14.05) (28.30) - - (16.92)

Currency conversions are applied to reference currency NAVs to produce non-base currency performance.Currency conversions are made by Morningstar using the 4PM GMT WM Reuters Spot Rate.

Morgan Stanley SICAV Quarterly Report - March 2008 77 Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum EQUITY FUNDS & INDICES Launch date % % % % change change change

Japanese Systematic Equity Fund IX Jul-06 ------Japanese Systematic Equity Fund AX Jul-06 ------TOPIX Index ------0.73

Japanese Value Equity Fund I May-93 (5.84) (13.65) (13.65) (24.49) 1.13 6.77 (0.48) Japanese Value Equity Fund A Feb-97 (5.90) (13.80) (13.80) (25.04) 0.39 6.02 Japanese Value Equity Fund B Jun-97 (5.98) (14.02) (14.02) (25.79) (0.61) 4.96 TOPIX Index (7.36) (14.05) (14.05) (28.30) (2.03) 6.05 (2.25)

Latin American Equity Fund I Aug-94 (11.11) (12.01) (12.01) 4.82 35.05 37.24 13.14 Latin American Equity Fund A Feb-97 (11.16) (12.17) (12.17) 4.12 34.15 36.34 Latin American Equity Fund B Jun-97 (11.24) (12.39) (12.39) 3.08 32.81 34.99 MSCI EM Latin America Index (7.44) (9.05) (9.05) 17.48 36.68 39.56 11.67

US Equity Fund I Dec-01 (6.20) (16.72) (16.72) (19.38) (2.11) 2.31 (6.72) US Equity Fund A Dec-01 (6.22) (16.83) (16.83) (20.86) (3.06) 1.56 US Equity Fund B Dec-01 (6.31) (17.05) (17.05) (21.68) (4.04) 0.55 S&P 500 Index (4.61) (16.45) (16.45) (20.26) (0.92) 3.32 (5.02)

US Equity Growth Fund I Aug-92 (6.04) (18.82) (18.82) (13.22) 3.25 3.29 8.19 US Equity Growth Fund A Feb-97 (6.10) (18.98) (18.98) (13.88) 2.45 2.52 US Equity Growth Fund B Jun-97 (6.19) (19.17) (19.17) (14.75) 1.43 1.51 Russell 1000 Growth Net 30% Withholding Tax TR Index (4.81) (17.20) (17.20) (16.91) (0.81) 1.71 6.89

US Equity Growth Fund AH Oct-06 (1.93) (12.74) (12.74) (0.15) - - 2.17 Russell 1000 Growth Index Euro Hedged (0.49) (9.92) (9.92) (3.12) - - (0.30)

US Property Fund I Jan-96 1.43 (2.90) (2.90) (29.92) 5.99 11.35 11.56 US Property Fund A Feb-97 1.37 (3.05) (3.05) (30.42) 5.24 10.59 US Property Fund B Mar-97 1.28 (3.31) (3.31) (31.14) 4.18 9.49 FTSE NAREIT Equity REITs (Net) Index 1.61 (6.77) (6.77) (31.50) 3.17 8.21 8.60

US Small Cap Growth Fund I Aug-91 (5.39) (19.00) (19.00) (25.67) (2.17) 6.29 7.45 US Small Cap Growth Fund A Feb-97 (5.45) (19.13) (19.13) (26.20) (2.86) 5.55 US Small Cap Growth Fund B Jun-97 (5.54) (19.34) (19.34) (26.94) (3.83) 4.49 Russell 2000 Growth Net 30% Withholding Tax TR Index (4.77) (19.60) (19.60) (23.63) (1.17) 5.87 4.47

US Systematic Equity Fund I May-06 (7.56) (20.06) (20.06) (24.22) - - (9.28) US Systematic Equity Fund A May-06 (7.62) (20.18) (20.18) (24.57) - - S&P 500 (Net) Index (4.66) (16.58) (16.58) (20.72) - - (7.60)

US Systematic Equity Fund IX May-06 (7.59) (20.29) (20.29) (24.63) - - (9.72) US Systematic Equity Fund AX May-06 (7.60) (20.20) (20.20) (24.64) - - S&P 500 (Net) Index (4.66) (16.58) (16.58) (20.72) - - (7.60)

US Value Equity Fund I Jul-99 (7.89) (16.12) (16.12) (26.58) (3.90) 3.18 (2.90) US Value Equity Fund A Jul-99 (7.90) (16.27) (16.27) (27.14) (4.63) 2.43 US Value Equity Fund B Jul-99 (8.00) (16.47) (16.47) (27.86) (5.58) 1.40 S&P 500 Index (4.61) (16.45) (16.45) (20.26) (0.92) 3.32 (2.89)

US Value Equity Fund AH Oct-06 (3.73) (10.31) (10.31) (14.90) - - (9.13) S&P 500 Index Euro Hedged (4.50) (16.20) (16.20) (20.83) - - (15.82)

BOND FUNDS & INDICES

Emerging Markets Debt Fund I Apr-95 (4.16) (7.07) (7.07) (11.85) 3.66 3.91 12.70 Emerging Markets Debt Fund A Feb-97 (4.19) (7.20) (7.20) (12.36) 3.08 3.31 Emerging Markets Debt Fund B Jul-97 (4.29) (7.43) (7.43) (13.24) 2.05 2.28 JPM Emerging Markets Bond Index Global (4.23) (7.15) (7.15) (12.26) 2.63 3.37 11.92

Currency conversions are applied to reference currency NAVs to produce non-base currency performance.Currency conversions are made by Morningstar using the 4PM GMT WM Reuters Spot Rate.

78 Morgan Stanley SICAV Quarterly Report - March 2008 Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum BOND FUNDS & INDICES Launch date % % % % change change change

Emerging Markets Debt Fund AH Oct-06 0.09 0.57 0.57 3.09 - - 4.59 JPM Emerging Markets Bond Index Global Euro Hedged 0.07 0.78 0.78 3.59 - - 5.12

Emerging Markets Domestic Debt Fund I Feb-07 (4.69) (5.89) (5.89) (6.29) - - (4.28) Emerging Markets Domestic Debt Fund A Feb-07 (4.73) (6.01) (6.01) (6.81) - - Emerging Markets Domestic Debt Fund B Feb-07 (4.84) (6.26) (6.26) (7.76) - - JPM GBI - EM Global Diversified (5.03) (5.67) (5.67) (2.15) - - 0.09

Emerging Markets Domestic Debt Fund IX Feb-07 (4.69) (10.03) (10.03) (11.34) - - (9.05) Emerging Markets Domestic Debt Fund AX Feb-07 (4.76) (9.77) (9.77) (11.31) - - JPM GBI - EM Global Diversified (5.03) (5.67) (5.67) (2.15) - - 0.09

Euro Bond Fund I Dec-98 (1.05) 1.44 1.44 1.99 1.72 3.01 3.54 Euro Bond Fund A Dec-98 (1.01) 1.32 1.32 1.70 1.30 2.59 Euro Bond Fund B Dec-98 (1.12) 1.04 1.04 0.62 0.31 1.55 Lehman Euro-Aggregate Index (0.77) 1.85 1.85 3.00 2.27 3.60 4.28

Euro Corporate Bond Fund I Sep-01 (2.12) (1.69) (1.69) (3.39) 0.35 3.04 3.63 Euro Corporate Bond Fund A Sep-01 (2.19) (1.81) (1.81) (3.82) (0.08) 2.61 Euro Corporate Bond Fund B Sep-01 (2.26) (2.06) (2.06) (4.77) (1.08) 1.59 Lehman Euro-Aggregate: Corporate Index (1.66) (0.32) (0.32) (1.06) 1.00 3.31 4.38

Euro Strategic Bond Fund I Feb-91 (1.83) 0.20 0.20 (0.23) 0.97 2.82 6.66 Euro Strategic Bond Fund A Feb-97 (1.85) 0.10 0.10 (0.66) 0.56 2.40 Euro Strategic Bond Fund B Sep-97 (1.94) (0.15) (0.15) (1.64) (0.45) 1.38 Lehman Euro-Aggregate Index (0.77) 1.85 1.85 3.00 2.27 3.60 7.29

Euro Total Return Bond Fund I Mar-07 (2.33) (2.33) (2.33) (3.19) - - (3.19) Euro Total Return Bond Fund A Mar-07 (2.38) (2.42) (2.42) (3.55) - - Euro Total Return Bond Fund B Mar-07 (2.45) (2.64) (2.64) (4.51) - - One Month Euribor Index 0.35 1.05 1.05 4.31 - - 4.31

Euro Total Return Bond Fund IX Mar-07 (2.34) (4.84) (4.84) (6.58) - - (6.58) Euro Total Return Bond Fund AX Mar-07 (2.38) (4.76) (4.76) (6.66) - - One Month Euribor Index 0.35 1.05 1.05 4.31 - - 4.31

European Currencies High Yield Bond Fund I Dec-98 (0.42) (5.24) (5.24) (7.08) 2.00 7.36 (2.71) European Currencies High Yield Bond Fund A Dec-98 (0.35) (5.30) (5.30) (7.45) 1.60 6.89 European Currencies High Yield Bond Fund B Dec-98 (0.48) (5.57) (5.57) (8.41) 0.55 5.83 ML European Currency Constrained High Yield Index (0.22) (6.20) (6.20) (9.64) 1.94 7.99 1.88

Global Bond Fund I Nov-89 (1.90) (0.29) (0.29) (1.95) (0.79) (0.16) 5.05 Global Bond Fund A Feb-97 (1.96) (0.42) (0.42) (2.40) (1.21) (0.61) Global Bond Fund B Jun-97 (2.00) (0.63) (0.63) (3.35) (2.19) (1.59) Citigroup World Government Bond Index (1.11) 1.18 1.18 1.05 0.40 0.33 5.88

Global Convertible Bond (Euro) Fund I Jul-02 (2.59) (5.27) (5.27) (2.56) 3.58 5.25 5.25 Global Convertible Bond (Euro) Fund A Jul-02 (2.62) (5.37) (5.37) (2.99) 3.10 4.76 Global Convertible Bond (Euro) Fund B Jul-02 (2.71) (5.61) (5.61) (3.95) 2.09 3.71 Merrill Lynch G300 Global Convertible Index Euro Hedged (2.48) (6.07) (6.07) (2.55) 6.72 6.97 7.07

Global Convertible Bond (USD) Fund I Jul-02 (6.85) (12.61) (12.61) (17.34) (1.42) (1.37) (2.02) Global Convertible Bond (USD) Fund A Jul-02 (6.89) (12.71) (12.71) (17.74) (1.87) (1.81) Global Convertible Bond (USD) Fund B Jul-02 (6.96) (12.90) (12.90) (18.54) (2.84) (2.79) Merrill Lynch G300 Global Convertible Index USD Hedged (6.78) (13.72) (13.72) (18.30) 0.69 (0.25) (1.21)

Short Maturity Euro Bond Fund I Aug-94 (0.70) 1.05 1.05 2.86 1.91 2.16 4.69 Short Maturity Euro Bond Fund A Feb-97 (0.68) 0.92 0.92 2.40 1.49 1.74 Short Maturity Euro Bond Fund B Oct-98 (0.81) 0.70 0.70 1.40 0.49 0.73 Lehman Euro-Aggregate: Treasury 1-3 Years Index (0.33) 1.57 1.57 4.68 2.86 2.93 5.41

US Bond Fund I Aug-92 (9.85) (14.34) (14.34) (19.08) (4.99) (5.20) 4.37 US Bond Fund A Feb-97 (9.90) (14.48) (14.48) (19.45) (5.40) (5.61) US Bond Fund B Sep-97 (9.95) (14.66) (14.66) (20.23) (6.34) (6.54) Lehman Brothers Aggregate Index (3.87) (5.73) (5.73) (9.55) (1.26) (2.93) 5.79

Currency conversions are applied to reference currency NAVs to produce non-base currency performance.Currency conversions are made by Morningstar using the 4PM GMT WM Reuters Spot Rate.

Morgan Stanley SICAV Quarterly Report - March 2008 79 Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum BOND FUNDS & INDICES Launch date % % % % change change change

US Dollar Short Duration Fund I Jul-02 (4.11) (7.25) (7.25) (13.35) (3.04) (4.80) (5.86) US Dollar Short Duration Fund A Jul-02 (4.11) (7.40) (7.40) (13.68) (3.46) (5.21) US Dollar Short Duration Fund B Jul-02 (4.28) (7.64) (7.64) (14.62) (4.43) (6.16) 3 Month US LIBOR Index (3.92) (7.16) (7.16) (11.98) (1.95) (3.98) (5.16)

LIQUIDITY FUNDS & INDICES

Euro Liquidity Fund I Jan-00 0.32 1.00 1.00 3.92 2.85 2.43 2.93 Euro Liquidity Fund A Jan-00 0.30 0.96 0.96 3.76 2.69 2.26 Euro Liquidity Fund B Jan-00 0.24 0.77 0.77 2.98 1.93 1.50 1 Month Euro LIBID Index 0.36 1.04 1.04 4.24 3.19 2.72 3.14

US Dollar Liquidity Fund I Jun-99 (3.94) (6.86) (6.86) (12.00) (2.29) (4.38) (1.62) US Dollar Liquidity Fund A Jul-99 (3.96) (6.93) (6.93) (12.32) (2.67) (4.75) US Dollar Liquidity Fund B Sep-99 (4.02) (7.09) (7.09) (12.51) (2.74) (4.79) Citi 3 Month US T-bill Index (4.00) (7.07) (7.07) (12.36) (2.39) (4.34) (1.55)

US Dollar Liquidity Fund IX Mar-98 (3.94) (6.86) (6.86) (12.03) (2.31) (4.39) (0.22) US Dollar Liquidity Fund AX May-98 (3.96) (6.93) (6.93) (12.35) (2.69) (4.76) US Dollar Liquidity Fund BX Dec-98 (4.02) (7.09) (7.09) (12.54) (2.76) (4.80) Citi 3 Month US T-bill Index (4.00) (7.07) (7.07) (12.36) (2.39) (4.34) (0.16)

ASSET ALLOCATION FUNDS & INDICES

Global Diversified (Euro) Fund I Dec-01 (4.78) (8.76) (8.76) (8.67) 1.82 5.73 2.36 Global Diversified (Euro) Fund A Dec-01 (4.82) (8.89) (8.89) (9.22) 1.24 5.13 Global Diversified (Euro) Fund B May-02 (4.89) (9.13) (9.13) (10.11) 0.23 4.09 50% MSCI World Index / 50% JPM Global Government Bond Index (3.15) (7.72) (7.72) (9.18) 1.68 4.05 (0.47)

Global Diversified (USD) Fund I Dec-01 (7.64) (14.42) (14.42) (19.49) (2.36) 1.27 (3.58) Global Diversified (USD) Fund A Dec-01 (7.68) (14.55) (14.55) (19.95) (2.94) 0.68 Global Diversified (USD) Fund B Jul-02 (7.76) (14.75) (14.75) (20.73) (3.87) (0.30) 50% MSCI World Index / 50% JPM Global Government Bond Index (3.15) (7.72) (7.72) (9.18) 1.68 4.05 (0.47)

ALTERNATIVE FUNDS & INDICES

FX Alpha Plus RC 200 (Euro) Fund I Feb-07 0.04 (0.15) (0.15) 2.83 - - 3.14 FX Alpha Plus RC 200 (Euro) Fund A Feb-07 0.04 (0.23) (0.23) 2.47 - - FX Alpha Plus RC 200 (Euro) Fund B Feb-07 (0.08) (0.47) (0.47) 1.43 - - Euro Overnight Index Average (EONIA) 0.34 1.01 1.01 4.14 - - 4.11

FX Alpha Plus RC 200 (Euro) Fund IX Feb-07 ------FX Alpha Plus RC 200 (Euro) Fund AX Feb-07 ------Euro Overnight Index Average (EONIA) ------1.04

FX Alpha Plus RC 200 (US Dollar) Fund I Feb-07 (4.41) (8.19) (8.19) (13.02) - - (12.09) FX Alpha Plus RC 200 (US Dollar) Fund A Feb-07 (4.27) (8.08) (8.08) (13.12) - - FX Alpha Plus RC 200 (US Dollar) Fund B Feb-07 ------Overnight USD LIBOR Index (3.94) (6.93) (6.93) (11.85) - - (11.26)

FX Alpha Plus RC 200 (US Dollar) Fund IX Feb-07 ------FX Alpha Plus RC 200 (US Dollar) Fund AX Feb-07 - (10.73) (10.73) (16.59) - - Overnight USD LIBOR Index ------0.88

Currency conversions are applied to reference currency NAVs to produce non-base currency performance.Currency conversions are made by Morningstar using the 4PM GMT WM Reuters Spot Rate.

80 Morgan Stanley SICAV Quarterly Report - March 2008 Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum ALTERNATIVE FUNDS & INDICES Launch date % % % % change change change

FX Alpha Plus RC 400 (Euro) Fund I Feb-07 (0.19) (1.15) (1.15) 2.26 - - 2.99 FX Alpha Plus RC 400 (Euro) Fund A Feb-07 (0.23) (1.31) (1.31) 1.75 - - FX Alpha Plus RC 400 (Euro) Fund B Feb-07 (0.31) (1.55) (1.55) 0.72 - - Euro Overnight Index Average (EONIA) 0.34 1.01 1.01 4.14 - - 4.11

FX Alpha Plus RC 400 (Euro) Fund IX Feb-07 ------FX Alpha Plus RC 400 (Euro) Fund AX Feb-07 - (3.25) (3.25) (0.68) - - Euro Overnight Index Average (EONIA) ------1.04

FX Alpha Plus RC 400 (US Dollar) Fund I Feb-07 (4.38) (8.93) (8.93) (13.69) - - (12.50) FX Alpha Plus RC 400 (US Dollar) Fund A Feb-07 (4.42) (9.00) (9.00) (14.06) - - FX Alpha Plus RC 400 (US Dollar) Fund B Feb-07 ------Overnight USD LIBOR Index (3.94) (6.93) (6.93) (11.85) - - (11.26)

FX Alpha Plus RC 400 (US Dollar) Fund IX Feb-07 (4.38) (9.47) (9.47) (15.06) - - (13.77) FX Alpha Plus RC 400 (US Dollar) Fund AX Feb-07 - (11.01) (11.01) (16.69) - - Overnight USD LIBOR Index (3.94) (6.93) (6.93) (11.85) - - (11.26)

FX Alpha Plus RC 800 (Euro) Fund I Feb-07 (0.66) (3.14) (3.14) 1.18 - - 2.55 FX Alpha Plus RC 800 (Euro) Fund A Feb-07 (0.74) (3.26) (3.26) 0.71 - - FX Alpha Plus RC 800 (Euro) Fund B Feb-07 (0.83) (3.52) (3.52) (0.32) - - Euro Overnight Index Average (EONIA) 0.34 1.01 1.01 4.14 - - 4.11

FX Alpha Plus RC 800 (Euro) Fund IX Feb-07 (0.68) (6.84) (6.84) (2.65) - - (1.04) FX Alpha Plus RC 800 (Euro) Fund AX Feb-07 (0.74) (3.91) (3.91) 0.08 - - Euro Overnight Index Average (EONIA) 0.34 1.01 1.01 4.14 - - 4.11

FX Alpha Plus RC 800 (Sterling) Fund I Feb-07 (4.86) (10.48) (10.48) (12.19) - - (10.46) FX Alpha Plus RC 800 (Sterling) Fund A Feb-07 (4.87) (10.60) (10.60) - - - FX Alpha Plus RC 800 (Sterling) Fund B Feb-07 ------Overnight GBP LIBOR Index (3.82) (6.60) (6.60) (9.83) - - (9.32)

FX Alpha Plus RC 800 (Sterling) Fund IX Feb-07 (4.84) (12.20) (12.20) (14.74) - - (12.87) FX Alpha Plus RC 800 (Sterling) Fund AX Feb-07 ------Overnight GBP LIBOR Index (3.82) (6.60) (6.60) (9.83) - - (9.32)

FX Alpha Plus RC 800 (US Dollar) Fund I Feb-07 (4.96) (10.79) (10.79) (13.94) - - (12.12) FX Alpha Plus RC 800 (US Dollar) Fund A Feb-07 (5.01) (10.91) (10.91) (14.67) - - FX Alpha Plus RC 800 (US Dollar) Fund B Feb-07 ------Overnight USD LIBOR Index (3.94) (6.93) (6.93) (11.85) - - (11.26)

FX Alpha Plus RC 800 (US Dollar) Fund IX Feb-07 ------FX Alpha Plus RC 800 (US Dollar) Fund AX Feb-07 - (13.43) (13.43) (17.48) - - Overnight USD LIBOR Index ------0.88

Morgan Stanley SICAV Quarterly Report - March 2008 81 US dollar total returns

Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum EQUITY FUNDS & INDICES Launch date % % % % change change change

American Franchise Fund I Dec-05 0.08 (5.86) (5.86) (9.41) - - 2.66 American Franchise Fund A Dec-05 0.04 (6.01) (6.01) (10.10) - - American Franchise Fund B Dec-05 (0.08) (6.25) (6.25) (10.96) - - S&P 500 Index (0.43) (9.45) (9.45) (5.08) - - 4.58

American Franchise Fund AH Oct-06 4.43 1.86 1.86 6.09 - - 8.62 S&P 500 Index Euro Hedged (0.32) (9.18) (9.18) (5.76) - - (1.94)

Asian Equity Fund I Oct-91 (6.12) (14.91) (14.91) 16.36 23.73 29.88 9.45 Asian Equity Fund A Feb-97 (6.17) (15.05) (15.05) 15.56 22.85 28.97 Asian Equity Fund B Jul-97 (6.26) (15.26) (15.26) 14.39 21.62 27.69 MSCI AC Far East Free ex Japan Index (5.29) (12.71) (12.71) 17.58 23.27 28.47 9.07

Asian Property Fund I Sep-97 (2.24) (14.09) (14.09) (12.27) 18.76 26.39 5.65 Asian Property Fund A Sep-97 (2.34) (14.24) (14.24) (12.90) 17.93 25.49 Asian Property Fund B Jul-99 (2.42) (14.46) (14.46) (13.75) 16.75 24.46 GPR General Quoted Asia Net Index (5.23) (15.61) (15.61) (11.88) 18.12 27.31 5.68

Emerging Europe, Middle East and North Africa Equity Fund I Oct-00 (5.96) (10.24) (10.24) 20.62 34.93 47.08 25.07 Emerging Europe, Middle East and North Africa Equity Fund A Oct-00 (6.01) (10.37) (10.37) 19.93 34.18 46.23 Emerging Europe, Middle East and North Africa Equity Fund B Oct-00 (6.07) (10.58) (10.58) 18.85 33.09 45.13 MSCI Emerging Europe and Middle East Index (2.95) (12.15) (12.15) 13.23 26.43 35.87 17.05

Emerging Markets Equity Fund I Jul-93 (7.20) (15.10) (15.10) 16.90 29.80 35.45 10.49 Emerging Markets Equity Fund A Feb-97 (7.24) (15.24) (15.24) 16.24 29.16 34.74 Emerging Markets Equity Fund B Jul-97 (7.31) (15.43) (15.43) 15.10 27.87 33.46 MSCI Emerging Markets Free (Net) Index (5.29) (10.99) (10.99) 21.33 29.23 35.53 10.20

European Equity Fund I Mar-91 (0.45) (10.70) (10.70) 0.38 11.99 19.94 10.35 European Equity Fund A Feb-97 (0.52) (10.84) (10.84) (0.19) 11.25 19.16 European Equity Fund B Jul-97 (0.58) (11.05) (11.05) (1.19) 10.16 17.97 MSCI Europe (Net) Index 0.42 (8.62) (8.62) 0.18 14.86 22.94 10.71

European Equity Opportunities Fund I Dec-06 (1.66) (12.66) (12.66) (1.25) - - 1.14 European Equity Opportunities Fund A Dec-06 (1.71) (12.81) (12.81) (1.95) - - European Equity Opportunities Fund B Dec-06 (1.78) (13.03) (13.03) (2.90) - - MSCI Europe (Net) Index 0.42 (8.62) (8.62) 0.18 - - 3.23

European Equity Opportunities Fund IX Dec-06 (1.59) (12.65) (12.65) (2.25) - - 0.26 European Equity Opportunities Fund AX Dec-06 (1.67) (12.81) (12.81) (2.62) - - MSCI Europe (Net) Index 0.42 (8.62) (8.62) 0.18 - - 3.23

European Property Fund I Sep-97 0.04 6.42 6.42 (23.55) 14.01 26.74 13.41 European Property Fund A Sep-97 (0.03) 6.21 6.21 (24.11) 13.19 25.87 European Property Fund B Jul-98 (0.12) 5.90 5.90 (24.90) 12.05 24.61 GPR General Quoted Europe Net Index 1.84 5.19 5.19 (19.27) 15.27 27.56 14.25

European Small Cap Value Fund I Nov-01 0.74 (5.78) (5.78) (6.92) 15.67 27.40 19.26 European Small Cap Value Fund A Nov-01 0.68 (5.96) (5.96) (7.61) 14.83 26.53 European Small Cap Value Fund B Nov-01 0.59 (6.19) (6.19) (8.52) 13.69 25.27 MSCI European Small Cap Index 1.01 (5.21) (5.21) (9.60) 17.03 31.11 20.18

European Systematic Equity Fund I Dec-05 (0.36) (9.56) (9.56) (2.81) - - 13.32 European Systematic Equity Fund A Dec-05 (0.41) (9.69) (9.69) (3.28) - - MSCI Europe (Net) Index 0.42 (8.62) (8.62) 0.18 - - 15.81

Eurozone Equity Opportunities Fund I Apr-00 0.56 (12.87) (12.87) (2.18) 12.86 18.74 4.08 Eurozone Equity Opportunities Fund A Apr-00 0.50 (13.07) (13.07) (2.92) 12.18 18.04 Eurozone Equity Opportunities Fund B Apr-00 0.47 (13.30) (13.30) (3.92) 11.05 16.85 MSCI EMU (Net) Index 1.61 (9.18) (9.18) 2.36 15.91 23.61 6.45

Global Brands Fund I Oct-00 (0.81) (7.11) (7.11) (3.30) 10.19 16.57 12.17 Global Brands Fund A Oct-00 (0.89) (7.28) (7.28) (4.01) 9.40 15.75 Global Brands Fund B Oct-00 (0.96) (7.51) (7.51) (4.95) 8.31 14.61 MSCI World (Net) Index (0.96) (9.06) (9.06) (3.25) 9.64 15.96 3.23

Currency conversions are applied to reference currency NAVs to produce non-base currency performance.Currency conversions are made by Morningstar using the 4PM GMT WM Reuters Spot Rate.

82 Morgan Stanley SICAV Quarterly Report - March 2008 Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum EQUITY FUNDS & INDICES Launch date % % % % change change change

Global Equity Growth Fund I Jul-06 (1.15) (10.45) (10.45) 2.65 - - 11.92 Global Equity Growth Fund A Jul-06 (1.23) (10.61) (10.61) 1.98 - - Global Equity Growth Fund B Jul-06 (1.31) (10.82) (10.82) 0.96 - - MSCI World (Net) Index (0.96) (9.06) (9.06) (3.25) - - 6.79

Global Equity Growth Fund IX Jul-06 (1.18) (10.49) (10.49) 2.25 - - 11.65 Global Equity Growth Fund AX Jul-06 (1.23) (10.58) (10.58) 1.91 - - MSCI World (Net) Index (0.96) (9.06) (9.06) (3.25) - - 6.79

Global Property Fund I Oct-06 0.73 (2.17) (2.17) (18.47) - - (4.30) Global Property Fund A Oct-06 0.65 (2.31) (2.31) (19.04) - - Global Property Fund B Oct-06 0.53 (2.59) (2.59) (19.85) - - FTSE EPRA/NAREIT Global Real Estate Index (Net, equal weighted) 0.51 (3.51) (3.51) (17.85) - - (3.33)

Global Property Fund IX Oct-06 0.70 (2.82) (2.82) (19.56) - - (5.40) Global Property Fund AX Oct-06 ------FTSE EPRA/NAREIT Global Real Estate Index (Net, equal weighted) 0.51 (3.51) (3.51) (17.85) - - (3.33)

Global Small Cap Value Fund I Mar-98 (0.11) (6.40) (6.40) (12.63) 7.31 18.68 8.58 Global Small Cap Value Fund A Mar-98 (0.15) (6.55) (6.55) (13.25) 6.55 17.88 Global Small Cap Value Fund B Mar-98 (0.25) (6.78) (6.78) (14.11) 5.50 16.74 MSCI World Small Cap Index (1.01) (8.13) (8.13) (11.93) 8.04 20.57 8.09

Global Systematic Equity Fund I Jul-00 (2.80) (11.38) (11.38) (8.82) 6.89 13.10 1.05 Global Systematic Equity Fund A Jul-00 (2.83) (11.48) (11.48) (9.23) 6.41 12.56 Global Systematic Equity Fund B Jul-00 (2.90) (11.70) (11.70) (10.13) 5.36 11.42 MSCI World (Net) Index (0.96) (9.06) (9.06) (3.25) 9.64 15.96 2.59

Global Value Equity Fund I Nov-89 (2.33) (10.70) (10.70) (6.70) 7.24 15.35 9.02 Global Value Equity Fund A Feb-97 (2.39) (10.84) (10.84) (7.37) 6.48 14.55 Global Value Equity Fund B Apr-97 (2.47) (11.08) (11.08) (8.31) 5.41 13.41 MSCI World (Net) Index (0.96) (9.06) (9.06) (3.25) 9.64 15.96 7.08

Indian Equity Fund I Nov-06 (11.06) (28.73) (28.73) 21.66 - - 12.06 Indian Equity Fund A Nov-06 (11.11) (28.86) (28.86) 20.75 - - Indian Equity Fund B Nov-06 (11.18) (29.03) (29.03) 19.55 - - MSCI India Blend Index (12.68) (26.99) (26.99) 30.64 - - 21.98

Indian Equity Fund IX Nov-06 ------Indian Equity Fund AX Nov-06 ------MSCI India Blend Index ------1.30

Japanese Equity Advantage Fund I May-06 2.35 (4.99) (4.99) (8.11) - - (4.48) Japanese Equity Advantage Fund A May-06 2.29 (5.14) (5.14) (8.71) - - Japanese Equity Advantage Fund B May-06 2.21 (5.38) (5.38) (9.63) - - TOPIX Index (3.30) (6.85) (6.85) (14.65) - - (6.22)

Japanese Equity Advantage Fund IX May-06 ------Japanese Equity Advantage Fund AX May-06 ------TOPIX Index ------0.89

Japanese Equity Advantage Fund AH Oct-06 2.21 (8.69) (8.69) (7.17) - - 0.69 Topix Euro Hedged Benchmark (Total Return) ------

Japanese Equity Growth Fund I Jul-00 0.14 (8.76) (8.76) (17.88) (1.38) 11.47 (2.62) Japanese Equity Growth Fund A Jul-00 0.08 (8.93) (8.93) (18.48) (2.09) 10.69 Japanese Equity Growth Fund B Jul-00 0.00 (9.15) (9.15) (19.23) (3.04) 9.70 TOPIX Index (3.30) (6.85) (6.85) (14.65) 4.66 14.27 0.05

Japanese Systematic Equity Fund I Jul-06 (1.40) (5.57) (5.57) (15.88) - - (5.10) Japanese Systematic Equity Fund A Jul-06 (1.44) (5.69) (5.69) (16.27) - - TOPIX Index (3.30) (6.85) (6.85) (14.65) - - (5.40)

Currency conversions are applied to reference currency NAVs to produce non-base currency performance.Currency conversions are made by Morningstar using the 4PM GMT WM Reuters Spot Rate.

Morgan Stanley SICAV Quarterly Report - March 2008 83 Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum EQUITY FUNDS & INDICES Launch date % % % % change change change

Japanese Systematic Equity Fund IX Jul-06 ------Japanese Systematic Equity Fund AX Jul-06 ------TOPIX Index ------0.91

Japanese Value Equity Fund I May-93 (1.72) (6.41) (6.41) (10.12) 8.04 15.04 1.27 Japanese Value Equity Fund A Feb-97 (1.78) (6.58) (6.58) (10.77) 7.25 14.23 Japanese Value Equity Fund B Jun-97 (1.86) (6.82) (6.82) (11.67) 6.18 13.09 TOPIX Index (3.30) (6.85) (6.85) (14.65) 4.66 14.27 (0.54)

Latin American Equity Fund I Aug-94 (7.22) (4.64) (4.64) 24.78 44.28 47.87 15.41 Latin American Equity Fund A Feb-97 (7.28) (4.81) (4.81) 23.94 43.32 46.91 Latin American Equity Fund B Jun-97 (7.36) (5.05) (5.05) 22.71 41.88 45.44 MSCI EM Latin America Index (3.39) (1.43) (1.43) 39.84 46.02 50.37 13.90

US Equity Fund I Dec-01 (2.09) (9.74) (9.74) (4.03) 4.58 10.23 2.29 US Equity Fund A Dec-01 (2.11) (9.86) (9.86) (5.79) 3.56 9.43 US Equity Fund B Dec-01 (2.21) (10.10) (10.10) (6.77) 2.51 8.34 S&P 500 Index (0.43) (9.45) (9.45) (5.08) 5.85 11.32 4.16

US Equity Growth Fund I Aug-92 (1.93) (12.02) (12.02) 3.29 10.31 11.29 8.88 US Equity Growth Fund A Feb-97 (1.99) (12.19) (12.19) 2.52 9.45 10.47 US Equity Growth Fund B Jun-97 (2.08) (12.39) (12.39) 1.48 8.36 9.37 Russell 1000 Growth Net 30% Withholding Tax TR Index (0.64) (10.26) (10.26) (1.10) 5.96 9.59 7.57

US Equity Growth Fund AH Oct-06 2.36 (5.42) (5.42) 18.86 - - 19.02 Russell 1000 Growth Index Euro Hedged 3.86 (2.37) (2.37) 15.32 - - 16.15

US Property Fund I Jan-96 5.87 5.24 5.24 (16.58) 13.23 19.98 13.87 US Property Fund A Feb-97 5.81 5.07 5.07 (17.17) 12.43 19.15 US Property Fund B Mar-97 5.72 4.79 4.79 (18.03) 11.30 17.97 FTSE NAREIT Equity REITs (Net) Index 6.06 1.04 1.04 (18.46) 10.21 16.59 10.86

US Small Cap Growth Fund I Aug-91 (1.24) (12.22) (12.22) (11.52) 4.52 14.52 9.42 US Small Cap Growth Fund A Feb-97 (1.31) (12.35) (12.35) (12.15) 3.78 13.73 US Small Cap Growth Fund B Jun-97 (1.40) (12.58) (12.58) (13.03) 2.74 12.58 Russell 2000 Growth Net 30% Withholding Tax TR Index (0.60) (12.87) (12.87) (9.09) 5.58 14.07 6.39

US Systematic Equity Fund I May-06 (3.52) (13.36) (13.36) (9.79) - - 1.73 US Systematic Equity Fund A May-06 (3.58) (13.49) (13.49) (10.21) - - S&P 500 (Net) Index (0.48) (9.59) (9.59) (5.63) - - 3.61

US Systematic Equity Fund IX May-06 (3.55) (13.61) (13.61) (10.28) - - 1.24 US Systematic Equity Fund AX May-06 (3.55) (13.51) (13.51) (10.29) - - S&P 500 (Net) Index (0.48) (9.59) (9.59) (5.63) - - 3.61

US Value Equity Fund I Jul-99 (3.86) (9.09) (9.09) (12.60) 2.66 11.18 1.60 US Value Equity Fund A Jul-99 (3.86) (9.25) (9.25) (13.27) 1.88 10.36 US Value Equity Fund B Jul-99 (3.98) (9.47) (9.47) (14.13) 0.87 9.25 S&P 500 Index (0.43) (9.45) (9.45) (5.08) 5.85 11.32 1.61

US Value Equity Fund AH Oct-06 0.48 (2.80) (2.80) 1.30 - - 5.85 S&P 500 Index Euro Hedged (0.32) (9.18) (9.18) (5.76) - - (1.94)

BOND FUNDS & INDICES

Emerging Markets Debt Fund I Apr-95 0.03 0.71 0.71 4.93 10.74 11.96 14.26 Emerging Markets Debt Fund A Feb-97 0.00 0.58 0.58 4.33 10.12 11.31 Emerging Markets Debt Fund B Jul-97 (0.10) 0.32 0.32 3.28 9.02 10.20 JPM Emerging Markets Bond Index Global (0.04) 0.63 0.63 4.45 9.64 11.38 13.47

Currency conversions are applied to reference currency NAVs to produce non-base currency performance.Currency conversions are made by Morningstar using the 4PM GMT WM Reuters Spot Rate.

84 Morgan Stanley SICAV Quarterly Report - March 2008 Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum BOND FUNDS & INDICES Launch date % % % % change change change

Emerging Markets Debt Fund AH Oct-06 4.48 9.00 9.00 22.72 - - 21.85 JPM Emerging Markets Bond Index Global Euro Hedged 4.45 9.23 9.23 23.31 - - 22.46

Emerging Markets Domestic Debt Fund I Feb-07 (0.52) 2.00 2.00 11.54 - - 13.22 Emerging Markets Domestic Debt Fund A Feb-07 (0.56) 1.86 1.86 10.92 - - Emerging Markets Domestic Debt Fund B Feb-07 (0.67) 1.59 1.59 9.80 - - JPM GBI - EM Global Diversified (0.88) 2.24 2.24 16.48 - - 18.39

Emerging Markets Domestic Debt Fund IX Feb-07 (0.51) (2.49) (2.49) 5.54 - - 7.58 Emerging Markets Domestic Debt Fund AX Feb-07 (0.59) (2.20) (2.20) 5.58 - - JPM GBI - EM Global Diversified (0.88) 2.24 2.24 16.48 - - 18.39

Euro Bond Fund I Dec-98 3.28 9.94 9.94 21.41 8.66 10.99 6.95 Euro Bond Fund A Dec-98 3.32 9.81 9.81 21.06 8.22 10.54 Euro Bond Fund B Dec-98 3.21 9.51 9.51 19.78 7.16 9.42 Lehman Euro-Aggregate Index 3.57 10.38 10.38 22.61 9.26 11.62 7.72

Euro Corporate Bond Fund I Sep-01 2.16 6.54 6.54 15.00 7.21 11.02 12.85 Euro Corporate Bond Fund A Sep-01 2.10 6.42 6.42 14.49 6.75 10.56 Euro Corporate Bond Fund B Sep-01 2.02 6.15 6.15 13.35 5.68 9.46 Lehman Euro-Aggregate: Corporate Index 2.65 8.04 8.04 17.77 7.90 11.32 13.67

Euro Strategic Bond Fund I Feb-91 2.47 8.60 8.60 18.76 7.87 10.79 7.69 Euro Strategic Bond Fund A Feb-97 2.45 8.49 8.49 18.25 7.43 10.33 Euro Strategic Bond Fund B Sep-97 2.36 8.21 8.21 17.09 6.35 9.23 Lehman Euro-Aggregate Index 3.57 10.38 10.38 22.61 9.26 11.62 8.32

Euro Total Return Bond Fund I Mar-07 1.94 5.85 5.85 15.24 - - 15.24 Euro Total Return Bond Fund A Mar-07 1.89 5.75 5.75 14.81 - - Euro Total Return Bond Fund B Mar-07 1.83 5.51 5.51 13.67 - - One Month Euribor Index 4.74 9.52 9.52 24.17 - - 24.17

Euro Total Return Bond Fund IX Mar-07 1.94 3.14 3.14 11.20 - - 11.20 Euro Total Return Bond Fund AX Mar-07 1.90 3.22 3.22 11.11 - - One Month Euribor Index 4.74 9.52 9.52 24.17 - - 24.17

European Currencies High Yield Bond Fund I Dec-98 3.94 2.70 2.70 10.61 8.97 15.68 0.50 European Currencies High Yield Bond Fund A Dec-98 4.01 2.63 2.63 10.17 8.53 15.17 European Currencies High Yield Bond Fund B Dec-98 3.88 2.34 2.34 9.02 7.42 14.02 ML European Currency Constrained High Yield Index 4.15 1.65 1.65 7.57 8.90 16.35 5.23

Global Bond Fund I Nov-89 2.40 8.07 8.07 16.72 5.98 7.57 6.95 Global Bond Fund A Feb-97 2.33 7.92 7.92 16.18 5.54 7.09 Global Bond Fund B Jun-97 2.29 7.70 7.70 15.05 4.49 6.03 Citigroup World Government Bond Index 3.22 9.66 9.66 20.28 7.26 8.10 7.79

Global Convertible Bond (Euro) Fund I Jul-02 1.68 2.67 2.67 15.99 10.66 13.40 14.56 Global Convertible Bond (Euro) Fund A Jul-02 1.64 2.56 2.56 15.48 10.14 12.88 Global Convertible Bond (Euro) Fund B Jul-02 1.55 2.30 2.30 14.34 9.06 11.75 Merrill Lynch G300 Global Convertible Index Euro Hedged 1.79 1.80 1.80 16.00 14.01 15.26 16.54

Global Convertible Bond (USD) Fund I Jul-02 (2.77) (5.29) (5.29) (1.60) 5.31 6.27 6.64 Global Convertible Bond (USD) Fund A Jul-02 (2.81) (5.39) (5.39) (2.08) 4.83 5.79 Global Convertible Bond (USD) Fund B Jul-02 (2.88) (5.61) (5.61) (3.03) 3.80 4.74 Merrill Lynch G300 Global Convertible Index USD Hedged (2.70) (6.49) (6.49) (2.74) 7.57 7.48 7.52

Short Maturity Euro Bond Fund I Aug-94 3.64 9.51 9.51 22.45 8.87 10.08 6.79 Short Maturity Euro Bond Fund A Feb-97 3.67 9.38 9.38 21.90 8.43 9.62 Short Maturity Euro Bond Fund B Oct-98 3.53 9.13 9.13 20.71 7.35 8.54 Lehman Euro-Aggregate: Treasury 1-3 Years Index 4.04 10.08 10.08 24.60 9.89 10.91 7.52

US Bond Fund I Aug-92 (5.90) (7.16) (7.16) (3.67) 1.50 2.14 5.03 US Bond Fund A Feb-97 (5.96) (7.32) (7.32) (4.11) 1.06 1.70 US Bond Fund B Sep-97 (6.01) (7.51) (7.51) (5.04) 0.05 0.70 Lehman Brothers Aggregate Index 0.34 2.17 2.17 7.67 5.48 4.58 6.47

Currency conversions are applied to reference currency NAVs to produce non-base currency performance.Currency conversions are made by Morningstar using the 4PM GMT WM Reuters Spot Rate.

Morgan Stanley SICAV Quarterly Report - March 2008 85 Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum BOND FUNDS & INDICES Launch date % % % % change change change

US Dollar Short Duration Fund I Jul-02 0.09 0.53 0.53 3.14 3.58 2.57 2.47 US Dollar Short Duration Fund A Jul-02 0.09 0.36 0.36 2.75 3.13 2.13 US Dollar Short Duration Fund B Jul-02 (0.09) 0.09 0.09 1.63 2.10 1.11 3 Month US LIBOR Index 0.29 0.61 0.61 4.78 4.75 3.46 3.23

LIQUIDITY FUNDS & INDICES

Euro Liquidity Fund I Jan-00 4.71 9.47 9.47 23.71 9.88 10.36 9.18 Euro Liquidity Fund A Jan-00 4.70 9.42 9.42 23.51 9.71 10.19 Euro Liquidity Fund B Jan-00 4.63 9.22 9.22 22.59 8.89 9.36 1 Month Euro LIBID Index 4.75 9.51 9.51 24.08 10.24 10.67 9.41

US Dollar Liquidity Fund I Jun-99 0.27 0.94 0.94 4.75 4.38 3.03 3.33 US Dollar Liquidity Fund A Jul-99 0.24 0.87 0.87 4.37 3.98 2.63 US Dollar Liquidity Fund B Sep-99 0.18 0.70 0.70 4.15 3.91 2.58 Citi 3 Month US T-bill Index 0.20 0.71 0.71 4.32 4.28 3.07 3.41

US Dollar Liquidity Fund IX Mar-98 0.27 0.94 0.94 4.71 4.36 3.02 3.51 US Dollar Liquidity Fund AX May-98 0.24 0.87 0.87 4.33 3.96 2.62 US Dollar Liquidity Fund BX Dec-98 0.18 0.70 0.70 4.11 3.89 2.57 Citi 3 Month US T-bill Index 0.20 0.71 0.71 4.32 4.28 3.07 3.57

ASSET ALLOCATION FUNDS & INDICES

Global Diversified (Euro) Fund I Dec-01 (0.62) (1.11) (1.11) 8.72 8.77 13.92 12.25 Global Diversified (Euro) Fund A Dec-01 (0.65) (1.26) (1.26) 8.06 8.15 13.28 Global Diversified (Euro) Fund B May-02 (0.73) (1.52) (1.52) 7.00 7.08 12.15 50% MSCI World Index / 50% JPM Global Government Bond Index 1.09 0.02 0.02 8.11 8.63 12.11 9.14

Global Diversified (USD) Fund I Dec-01 (3.59) (7.25) (7.25) (4.17) 4.31 9.11 5.74 Global Diversified (USD) Fund A Dec-01 (3.64) (7.39) (7.39) (4.71) 3.69 8.48 Global Diversified (USD) Fund B Jul-02 (3.72) (7.60) (7.60) (5.64) 2.70 7.43 50% MSCI World Index / 50% JPM Global Government Bond Index 1.09 0.02 0.02 8.11 8.63 12.11 9.14

ALTERNATIVE FUNDS & INDICES

FX Alpha Plus RC 200 (Euro) Fund I Feb-07 4.42 8.21 8.21 22.40 - - 22.00 FX Alpha Plus RC 200 (Euro) Fund A Feb-07 4.42 8.13 8.13 21.98 - - FX Alpha Plus RC 200 (Euro) Fund B Feb-07 4.30 7.87 7.87 20.74 - - Euro Overnight Index Average (EONIA) 4.73 9.47 9.47 23.96 - - 23.15

FX Alpha Plus RC 200 (Euro) Fund IX Feb-07 ------FX Alpha Plus RC 200 (Euro) Fund AX Feb-07 ------Euro Overnight Index Average (EONIA) ------1.25

FX Alpha Plus RC 200 (US Dollar) Fund I Feb-07 (0.23) (0.50) (0.50) 3.54 - - 3.98 FX Alpha Plus RC 200 (US Dollar) Fund A Feb-07 (0.08) (0.38) (0.38) 3.42 - - FX Alpha Plus RC 200 (US Dollar) Fund B Feb-07 ------Overnight USD LIBOR Index 0.26 0.87 0.87 4.93 - - 4.97

FX Alpha Plus RC 200 (US Dollar) Fund IX Feb-07 ------FX Alpha Plus RC 200 (US Dollar) Fund AX Feb-07 - (3.25) (3.25) (0.72) - - Overnight USD LIBOR Index ------1.05

Currency conversions are applied to reference currency NAVs to produce non-base currency performance.Currency conversions are made by Morningstar using the 4PM GMT WM Reuters Spot Rate.

86 Morgan Stanley SICAV Quarterly Report - March 2008 Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum ALTERNATIVE FUNDS & INDICES Launch date % % % % change change change

FX Alpha Plus RC 400 (Euro) Fund I Feb-07 4.18 7.13 7.13 21.73 - - 21.83 FX Alpha Plus RC 400 (Euro) Fund A Feb-07 4.13 6.96 6.96 21.12 - - FX Alpha Plus RC 400 (Euro) Fund B Feb-07 4.05 6.70 6.70 19.89 - - Euro Overnight Index Average (EONIA) 4.73 9.47 9.47 23.96 - - 23.15

FX Alpha Plus RC 400 (Euro) Fund IX Feb-07 ------FX Alpha Plus RC 400 (Euro) Fund AX Feb-07 - 4.86 4.86 18.23 - - Euro Overnight Index Average (EONIA) ------1.25

FX Alpha Plus RC 400 (US Dollar) Fund I Feb-07 (0.19) (1.29) (1.29) 2.73 - - 3.51 FX Alpha Plus RC 400 (US Dollar) Fund A Feb-07 (0.23) (1.38) (1.38) 2.30 - - FX Alpha Plus RC 400 (US Dollar) Fund B Feb-07 ------Overnight USD LIBOR Index 0.26 0.87 0.87 4.93 - - 4.97

FX Alpha Plus RC 400 (US Dollar) Fund IX Feb-07 (0.20) (1.88) (1.88) 1.11 - - 1.99 FX Alpha Plus RC 400 (US Dollar) Fund AX Feb-07 - (3.55) (3.55) (0.83) - - Overnight USD LIBOR Index 0.26 0.87 0.87 4.93 - - 4.97

FX Alpha Plus RC 800 (Euro) Fund I Feb-07 3.69 4.98 4.98 20.45 - - 21.31 FX Alpha Plus RC 800 (Euro) Fund A Feb-07 3.61 4.84 4.84 19.88 - - FX Alpha Plus RC 800 (Euro) Fund B Feb-07 3.52 4.56 4.56 18.66 - - Euro Overnight Index Average (EONIA) 4.73 9.47 9.47 23.96 - - 23.15

FX Alpha Plus RC 800 (Euro) Fund IX Feb-07 3.66 0.97 0.97 15.89 - - 17.06 FX Alpha Plus RC 800 (Euro) Fund AX Feb-07 3.60 4.14 4.14 19.13 - - Euro Overnight Index Average (EONIA) 4.73 9.47 9.47 23.96 - - 23.15

FX Alpha Plus RC 800 (Sterling) Fund I Feb-07 (0.69) (2.97) (2.97) 4.53 - - 5.91 FX Alpha Plus RC 800 (Sterling) Fund A Feb-07 (0.71) (3.11) (3.11) - - - FX Alpha Plus RC 800 (Sterling) Fund B Feb-07 ------Overnight GBP LIBOR Index 0.39 1.23 1.23 7.34 - - 7.27

FX Alpha Plus RC 800 (Sterling) Fund IX Feb-07 (0.67) (4.84) (4.84) 1.49 - - 3.07 FX Alpha Plus RC 800 (Sterling) Fund AX Feb-07 ------Overnight GBP LIBOR Index 0.39 1.23 1.23 7.34 - - 7.27

FX Alpha Plus RC 800 (US Dollar) Fund I Feb-07 (0.80) (3.31) (3.31) 2.44 - - 3.96 FX Alpha Plus RC 800 (US Dollar) Fund A Feb-07 (0.85) (3.45) (3.45) 1.58 - - FX Alpha Plus RC 800 (US Dollar) Fund B Feb-07 ------Overnight USD LIBOR Index 0.26 0.87 0.87 4.93 - - 4.97

FX Alpha Plus RC 800 (US Dollar) Fund IX Feb-07 ------FX Alpha Plus RC 800 (US Dollar) Fund AX Feb-07 - (6.18) (6.18) (1.77) - - Overnight USD LIBOR Index ------1.05

Morgan Stanley SICAV Quarterly Report - March 2008 87 Japanese yen total returns

Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum EQUITY FUNDS & INDICES Launch date % % % % change change change

American Franchise Fund I Dec-05 (4.32) (16.12) (16.12) (23.63) - - (4.83) American Franchise Fund A Dec-05 (4.35) (16.26) (16.26) (24.22) - - American Franchise Fund B Dec-05 (4.46) (16.47) (16.47) (24.94) - - S&P 500 Index (4.80) (19.32) (19.32) (19.99) - - (3.05)

American Franchise Fund AH Oct-06 (0.15) (9.25) (9.25) (10.57) - - (3.18) S&P 500 Index Euro Hedged (4.70) (19.08) (19.08) (20.56) - - (12.59)

Asian Equity Fund I Oct-91 (10.24) (24.19) (24.19) (1.91) 20.80 25.41 7.66 Asian Equity Fund A Feb-97 (10.29) (24.31) (24.31) (2.59) 19.94 24.54 Asian Equity Fund B Jul-97 (10.38) (24.50) (24.50) (3.57) 18.74 23.30 MSCI AC Far East Free ex Japan Index (9.44) (22.23) (22.23) (0.88) 20.35 24.05 7.28

Asian Property Fund I Sep-97 (6.53) (23.45) (23.45) (26.05) 15.94 22.04 3.73 Asian Property Fund A Sep-97 (6.63) (23.59) (23.59) (26.57) 15.14 21.17 Asian Property Fund B Jul-99 (6.70) (23.78) (23.78) (27.30) 13.99 20.18 GPR General Quoted Asia Net Index (9.39) (24.81) (24.81) (25.72) 15.32 22.93 3.75

Emerging Europe, Middle East and North Africa Equity Fund I Oct-00 (10.09) (20.03) (20.03) 1.68 31.73 42.01 23.52 Emerging Europe, Middle East and North Africa Equity Fund A Oct-00 (10.14) (20.14) (20.14) 1.10 31.00 41.19 Emerging Europe, Middle East and North Africa Equity Fund B Oct-00 (10.19) (20.33) (20.33) 0.19 29.94 40.14 MSCI Emerging Europe and Middle East Index (7.21) (21.72) (21.72) (4.55) 23.44 31.19 15.60

Emerging Markets Equity Fund I Jul-93 (11.27) (24.36) (24.36) (1.46) 26.73 30.79 10.09 Emerging Markets Equity Fund A Feb-97 (11.32) (24.48) (24.48) (2.01) 26.09 30.10 Emerging Markets Equity Fund B Jul-97 (11.37) (24.65) (24.65) (2.97) 24.84 28.87 MSCI Emerging Markets Free (Net) Index (9.45) (20.70) (20.70) 2.28 26.17 30.86 9.81

European Equity Fund I Mar-91 (4.82) (20.44) (20.44) (15.38) 9.33 15.81 8.11 European Equity Fund A Feb-97 (4.89) (20.56) (20.56) (15.86) 8.62 15.06 European Equity Fund B Jul-97 (4.94) (20.75) (20.75) (16.71) 7.55 13.91 MSCI Europe (Net) Index (3.99) (18.58) (18.58) (15.55) 12.14 18.71 8.45

European Equity Opportunities Fund I Dec-06 (5.98) (22.18) (22.18) (16.76) - - (12.42) European Equity Opportunities Fund A Dec-06 (6.03) (22.32) (22.32) (17.34) - - European Equity Opportunities Fund B Dec-06 (6.10) (22.51) (22.51) (18.14) - - MSCI Europe (Net) Index (3.99) (18.58) (18.58) (15.55) - - (10.61)

European Equity Opportunities Fund IX Dec-06 (5.91) (22.17) (22.17) (17.60) - - (13.18) European Equity Opportunities Fund AX Dec-06 (5.98) (22.32) (22.32) (17.91) - - MSCI Europe (Net) Index (3.99) (18.58) (18.58) (15.55) - - (10.61)

European Property Fund I Sep-97 (4.35) (5.18) (5.18) (35.55) 11.31 22.38 11.34 European Property Fund A Sep-97 (4.41) (5.37) (5.37) (36.03) 10.51 21.53 European Property Fund B Jul-98 (4.50) (5.64) (5.64) (36.69) 9.39 20.32 GPR General Quoted Europe Net Index (2.63) (6.28) (6.28) (31.95) 12.54 23.18 12.17

European Small Cap Value Fund I Nov-01 (3.69) (16.05) (16.05) (21.54) 12.92 23.02 15.32 European Small Cap Value Fund A Nov-01 (3.74) (16.21) (16.21) (22.11) 12.10 22.18 European Small Cap Value Fund B Nov-01 (3.83) (16.42) (16.42) (22.88) 10.99 20.96 MSCI European Small Cap Index (3.42) (15.54) (15.54) (23.79) 14.25 26.60 16.21

European Systematic Equity Fund I Dec-05 (4.74) (19.42) (19.42) (18.07) - - 5.05 European Systematic Equity Fund A Dec-05 (4.78) (19.54) (19.54) (18.47) - - MSCI Europe (Net) Index (3.99) (18.58) (18.58) (15.55) - - 7.36

Eurozone Equity Opportunities Fund I Apr-00 (3.86) (22.37) (22.37) (17.54) 10.19 14.65 3.00 Eurozone Equity Opportunities Fund A Apr-00 (3.91) (22.55) (22.55) (18.17) 9.52 13.98 Eurozone Equity Opportunities Fund B Apr-00 (3.94) (22.75) (22.75) (19.00) 8.42 12.83 MSCI EMU (Net) Index (2.85) (19.08) (19.08) (13.71) 13.16 19.36 5.35

Global Brands Fund I Oct-00 (5.17) (17.24) (17.24) (18.49) 7.58 12.56 10.78 Global Brands Fund A Oct-00 (5.24) (17.39) (17.39) (19.08) 6.81 11.77 Global Brands Fund B Oct-00 (5.30) (17.59) (17.59) (19.88) 5.74 10.67 MSCI World (Net) Index (5.31) (18.97) (18.97) (18.44) 7.04 11.97 1.95

Currency conversions are applied to reference currency NAVs to produce non-base currency performance.Currency conversions are made by Morningstar using the 4PM GMT WM Reuters Spot Rate.

88 Morgan Stanley SICAV Quarterly Report - March 2008 Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum EQUITY FUNDS & INDICES Launch date % % % % change change change

Global Equity Growth Fund I Jul-06 (5.49) (20.21) (20.21) (13.46) - - 2.93 Global Equity Growth Fund A Jul-06 (5.56) (20.35) (20.35) (14.03) - - Global Equity Growth Fund B Jul-06 (5.64) (20.54) (20.54) (14.89) - - MSCI World (Net) Index (5.31) (18.97) (18.97) (18.44) - - (1.79)

Global Equity Growth Fund IX Jul-06 (5.52) (20.25) (20.25) (13.81) - - 2.68 Global Equity Growth Fund AX Jul-06 (5.56) (20.33) (20.33) (14.09) - - MSCI World (Net) Index (5.31) (18.97) (18.97) (18.44) - - (1.79)

Global Property Fund I Oct-06 (3.69) (12.83) (12.83) (31.27) - - (14.70) Global Property Fund A Oct-06 (3.77) (12.96) (12.96) (31.75) - - Global Property Fund B Oct-06 (3.89) (13.21) (13.21) (32.44) - - FTSE EPRA/NAREIT Global Real Estate Index (Net, equal weighted) (3.91) (14.03) (14.03) (30.75) - - (13.83)

Global Property Fund IX Oct-06 (3.72) (13.41) (13.41) (32.19) - - (15.68) Global Property Fund AX Oct-06 ------FTSE EPRA/NAREIT Global Real Estate Index (Net, equal weighted) (3.91) (14.03) (14.03) (30.75) - - (13.83)

Global Small Cap Value Fund I Mar-98 (4.49) (16.61) (16.61) (26.34) 4.77 14.59 5.45 Global Small Cap Value Fund A Mar-98 (4.53) (16.74) (16.74) (26.87) 4.03 13.82 Global Small Cap Value Fund B Mar-98 (4.63) (16.94) (16.94) (27.60) 3.00 12.72 MSCI World Small Cap Index (5.36) (18.14) (18.14) (25.76) 5.48 16.42 4.98

Global Systematic Equity Fund I Jul-00 (7.07) (21.05) (21.05) (23.14) 4.36 9.21 (0.21) Global Systematic Equity Fund A Jul-00 (7.10) (21.14) (21.14) (23.49) 3.89 8.68 Global Systematic Equity Fund B Jul-00 (7.16) (21.33) (21.33) (24.24) 2.86 7.58 MSCI World (Net) Index (5.31) (18.97) (18.97) (18.44) 7.04 11.97 1.31

Global Value Equity Fund I Nov-89 (6.61) (20.44) (20.44) (21.35) 4.69 11.38 6.89 Global Value Equity Fund A Feb-97 (6.67) (20.56) (20.56) (21.92) 3.95 10.61 Global Value Equity Fund B Apr-97 (6.75) (20.77) (20.77) (22.71) 2.91 9.51 MSCI World (Net) Index (5.31) (18.97) (18.97) (18.44) 7.04 11.97 4.99

Indian Equity Fund I Nov-06 (14.97) (36.50) (36.50) 2.55 - - 0.13 Indian Equity Fund A Nov-06 (15.01) (36.62) (36.62) 1.79 - - Indian Equity Fund B Nov-06 (15.08) (36.77) (36.77) 0.78 - - MSCI India Blend Index (16.51) (34.95) (34.95) 10.12 - - 9.00

Indian Equity Fund IX Nov-06 ------Indian Equity Fund AX Nov-06 ------MSCI India Blend Index ------1.12

Japanese Equity Advantage Fund I May-06 (2.14) (15.35) (15.35) (22.54) - - (10.48) Japanese Equity Advantage Fund A May-06 (2.20) (15.48) (15.48) (23.04) - - Japanese Equity Advantage Fund B May-06 (2.28) (15.69) (15.69) (23.82) - - TOPIX Index (7.55) (17.01) (17.01) (28.06) - - (12.11)

Japanese Equity Advantage Fund IX May-06 ------Japanese Equity Advantage Fund AX May-06 ------TOPIX Index ------0.79

Japanese Equity Advantage Fund AH Oct-06 (2.28) (18.65) (18.65) (21.74) - - (10.25) Topix Euro Hedged Benchmark (Total Return) ------

Japanese Equity Growth Fund I Jul-00 (4.26) (18.71) (18.71) (30.78) (3.72) 7.63 (3.83) Japanese Equity Growth Fund A Jul-00 (4.32) (18.86) (18.86) (31.28) (4.41) 6.88 Japanese Equity Growth Fund B Jul-00 (4.39) (19.05) (19.05) (31.91) (5.33) 5.93 TOPIX Index (7.55) (17.01) (17.01) (28.06) 2.18 10.33 (1.19)

Japanese Systematic Equity Fund I Jul-06 (5.73) (15.87) (15.87) (29.09) - - (12.72) Japanese Systematic Equity Fund A Jul-06 (5.77) (15.97) (15.97) (29.42) - - TOPIX Index (7.55) (17.01) (17.01) (28.06) - - (13.00)

Currency conversions are applied to reference currency NAVs to produce non-base currency performance.Currency conversions are made by Morningstar using the 4PM GMT WM Reuters Spot Rate.

Morgan Stanley SICAV Quarterly Report - March 2008 89 Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum EQUITY FUNDS & INDICES Launch date % % % % change change change

Japanese Systematic Equity Fund IX Jul-06 ------Japanese Systematic Equity Fund AX Jul-06 ------TOPIX Index ------0.79

Japanese Value Equity Fund I May-93 (6.03) (16.62) (16.62) (24.23) 5.48 11.08 0.77 Japanese Value Equity Fund A Feb-97 (6.09) (16.77) (16.77) (24.78) 4.71 10.30 Japanese Value Equity Fund B Jun-97 (6.17) (16.98) (16.98) (25.54) 3.66 9.20 TOPIX Index (7.55) (17.01) (17.01) (28.06) 2.18 10.33 (1.03)

Latin American Equity Fund I Aug-94 (11.29) (15.03) (15.03) 5.19 40.86 42.78 15.36 Latin American Equity Fund A Feb-97 (11.35) (15.19) (15.19) 4.48 39.92 41.85 Latin American Equity Fund B Jun-97 (11.42) (15.40) (15.40) 3.44 38.52 40.44 MSCI EM Latin America Index (7.63) (12.18) (12.18) 17.88 42.56 45.20 13.85

US Equity Fund I Dec-01 (6.39) (19.58) (19.58) (19.10) 2.10 6.44 (2.11) US Equity Fund A Dec-01 (6.41) (19.69) (19.69) (20.59) 1.10 5.66 US Equity Fund B Dec-01 (6.51) (19.90) (19.90) (21.41) 0.09 4.61 S&P 500 Index (4.80) (19.32) (19.32) (19.99) 3.34 7.49 (0.33)

US Equity Growth Fund I Aug-92 (6.23) (21.61) (21.61) (12.92) 7.69 7.46 7.40 US Equity Growth Fund A Feb-97 (6.29) (21.76) (21.76) (13.58) 6.86 6.66 US Equity Growth Fund B Jun-97 (6.38) (21.94) (21.94) (14.45) 5.79 5.60 Russell 1000 Growth Net 30% Withholding Tax TR Index (5.00) (20.05) (20.05) (16.63) 3.45 5.82 6.11

US Equity Growth Fund AH Oct-06 (2.13) (15.74) (15.74) 0.19 - - 6.09 Russell 1000 Growth Index Euro Hedged (0.70) (13.01) (13.01) (2.79) - - 3.53

US Property Fund I Jan-96 1.22 (6.23) (6.23) (29.68) 10.55 15.85 13.21 US Property Fund A Feb-97 1.16 (6.39) (6.39) (30.18) 9.76 15.05 US Property Fund B Mar-97 1.08 (6.64) (6.64) (30.90) 8.66 13.91 FTSE NAREIT Equity REITs (Net) Index 1.40 (9.97) (9.97) (31.26) 7.60 12.58 10.21

US Small Cap Growth Fund I Aug-91 (5.58) (21.79) (21.79) (25.41) 2.04 10.58 7.34 US Small Cap Growth Fund A Feb-97 (5.64) (21.91) (21.91) (25.94) 1.32 9.82 US Small Cap Growth Fund B Jun-97 (5.73) (22.11) (22.11) (26.69) 0.30 8.71 Russell 2000 Growth Net 30% Withholding Tax TR Index (4.97) (22.37) (22.37) (23.37) 3.07 10.14 4.36

US Systematic Equity Fund I May-06 (7.75) (22.81) (22.81) (23.95) - - (4.66) US Systematic Equity Fund A May-06 (7.81) (22.92) (22.92) (24.31) - - S&P 500 (Net) Index (4.85) (19.44) (19.44) (20.45) - - (2.90)

US Systematic Equity Fund IX May-06 (7.78) (23.03) (23.03) (24.37) - - (5.12) US Systematic Equity Fund AX May-06 (7.78) (22.94) (22.94) (24.38) - - S&P 500 (Net) Index (4.85) (19.44) (19.44) (20.45) - - (2.90)

US Value Equity Fund I Jul-99 (8.08) (19.00) (19.00) (26.33) 0.23 7.35 (0.06) US Value Equity Fund A Jul-99 (8.08) (19.15) (19.15) (26.88) (0.53) 6.57 US Value Equity Fund B Jul-99 (8.19) (19.34) (19.34) (27.61) (1.52) 5.49 S&P 500 Index (4.80) (19.32) (19.32) (19.99) 3.34 7.49 (0.04)

US Value Equity Fund AH Oct-06 (3.93) (13.40) (13.40) (14.60) - - (5.65) S&P 500 Index Euro Hedged (4.70) (19.08) (19.08) (20.56) - - (12.59)

BOND FUNDS & INDICES

Emerging Markets Debt Fund I Apr-95 (4.36) (10.27) (10.27) (11.55) 8.12 8.10 15.77 Emerging Markets Debt Fund A Feb-97 (4.39) (10.39) (10.39) (12.05) 7.51 7.48 Emerging Markets Debt Fund B Jul-97 (4.49) (10.62) (10.62) (12.94) 6.44 6.41 JPM Emerging Markets Bond Index Global (4.43) (10.34) (10.34) (11.95) 7.05 7.54 14.97

Currency conversions are applied to reference currency NAVs to produce non-base currency performance.Currency conversions are made by Morningstar using the 4PM GMT WM Reuters Spot Rate.

90 Morgan Stanley SICAV Quarterly Report - March 2008 Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum BOND FUNDS & INDICES Launch date % % % % change change change

Emerging Markets Debt Fund AH Oct-06 (0.11) (2.89) (2.89) 3.45 - - 8.60 JPM Emerging Markets Bond Index Global Euro Hedged (0.14) (2.68) (2.68) 3.95 - - 9.15

Emerging Markets Domestic Debt Fund I Feb-07 (4.89) (9.12) (9.12) (5.97) - - (3.60) Emerging Markets Domestic Debt Fund A Feb-07 (4.92) (9.24) (9.24) (6.49) - - Emerging Markets Domestic Debt Fund B Feb-07 (5.03) (9.49) (9.49) (7.44) - - JPM GBI - EM Global Diversified (5.23) (8.91) (8.91) (1.81) - - 0.80

Emerging Markets Domestic Debt Fund IX Feb-07 (4.88) (13.12) (13.12) (11.03) - - (8.40) Emerging Markets Domestic Debt Fund AX Feb-07 (4.95) (12.87) (12.87) (11.00) - - JPM GBI - EM Global Diversified (5.23) (8.91) (8.91) (1.81) - - 0.80

Euro Bond Fund I Dec-98 (1.26) (2.05) (2.05) 2.35 6.09 7.17 5.52 Euro Bond Fund A Dec-98 (1.21) (2.16) (2.16) 2.05 5.66 6.73 Euro Bond Fund B Dec-98 (1.32) (2.43) (2.43) 0.97 4.62 5.65 Lehman Euro-Aggregate Index (0.97) (1.65) (1.65) 3.36 6.67 7.78 6.27

Euro Corporate Bond Fund I Sep-01 (2.32) (5.07) (5.07) (3.06) 4.67 7.20 9.77 Euro Corporate Bond Fund A Sep-01 (2.38) (5.18) (5.18) (3.49) 4.22 6.75 Euro Corporate Bond Fund B Sep-01 (2.46) (5.43) (5.43) (4.45) 3.18 5.69 Lehman Euro-Aggregate: Corporate Index (1.86) (3.74) (3.74) (0.72) 5.34 7.48 10.57

Euro Strategic Bond Fund I Feb-91 (2.03) (3.24) (3.24) 0.11 5.31 6.98 5.88 Euro Strategic Bond Fund A Feb-97 (2.05) (3.34) (3.34) (0.31) 4.89 6.53 Euro Strategic Bond Fund B Sep-97 (2.14) (3.59) (3.59) (1.30) 3.83 5.47 Lehman Euro-Aggregate Index (0.97) (1.65) (1.65) 3.36 6.67 7.78 6.50

Euro Total Return Bond Fund I Mar-07 (2.53) (5.69) (5.69) (2.86) - - (2.86) Euro Total Return Bond Fund A Mar-07 (2.58) (5.78) (5.78) (3.22) - - Euro Total Return Bond Fund B Mar-07 (2.64) (5.99) (5.99) (4.18) - - One Month Euribor Index 0.14 (2.42) (2.42) 4.67 - - 4.67

Euro Total Return Bond Fund IX Mar-07 (2.53) (8.11) (8.11) (6.26) - - (6.26) Euro Total Return Bond Fund AX Mar-07 (2.58) (8.04) (8.04) (6.34) - - One Month Euribor Index 0.14 (2.42) (2.42) 4.67 - - 4.67

European Currencies High Yield Bond Fund I Dec-98 (0.62) (8.50) (8.50) (6.76) 6.39 11.70 (0.85) European Currencies High Yield Bond Fund A Dec-98 (0.55) (8.56) (8.56) (7.13) 5.96 11.21 European Currencies High Yield Bond Fund B Dec-98 (0.68) (8.82) (8.82) (8.10) 4.88 10.10 ML European Currency Constrained High Yield Index (0.42) (9.43) (9.43) (9.32) 6.32 12.35 3.82

Global Bond Fund I Nov-89 (2.10) (3.71) (3.71) (1.61) 3.47 3.87 4.86 Global Bond Fund A Feb-97 (2.16) (3.84) (3.84) (2.06) 3.04 3.41 Global Bond Fund B Jun-97 (2.20) (4.04) (4.04) (3.02) 2.01 2.38 Citigroup World Government Bond Index (1.31) (2.29) (2.29) 1.40 4.72 4.38 5.68

Global Convertible Bond (Euro) Fund I Jul-02 (2.78) (8.52) (8.52) (2.22) 8.04 9.50 10.88 Global Convertible Bond (Euro) Fund A Jul-02 (2.82) (8.62) (8.62) (2.65) 7.53 8.99 Global Convertible Bond (Euro) Fund B Jul-02 (2.91) (8.85) (8.85) (3.61) 6.48 7.90 Merrill Lynch G300 Global Convertible Index Euro Hedged (2.68) (9.30) (9.30) (2.21) 11.31 11.29 12.80

Global Convertible Bond (USD) Fund I Jul-02 (7.04) (15.62) (15.62) (17.05) 2.81 2.61 3.22 Global Convertible Bond (USD) Fund A Jul-02 (7.08) (15.71) (15.71) (17.45) 2.35 2.15 Global Convertible Bond (USD) Fund B Jul-02 (7.15) (15.90) (15.90) (18.26) 1.34 1.14 Merrill Lynch G300 Global Convertible Index USD Hedged (6.97) (16.69) (16.69) (18.01) 5.02 3.78 4.07

Short Maturity Euro Bond Fund I Aug-94 (0.91) (2.43) (2.43) 3.22 6.29 6.29 6.74 Short Maturity Euro Bond Fund A Feb-97 (0.89) (2.54) (2.54) 2.76 5.86 5.84 Short Maturity Euro Bond Fund B Oct-98 (1.01) (2.76) (2.76) 1.75 4.81 4.80 Lehman Euro-Aggregate: Treasury 1-3 Years Index (0.53) (1.92) (1.92) 5.04 7.28 7.09 7.47

US Bond Fund I Aug-92 (10.03) (17.28) (17.28) (18.80) (0.91) (1.38) 3.60 US Bond Fund A Feb-97 (10.09) (17.42) (17.42) (19.17) (1.33) (1.80) US Bond Fund B Sep-97 (10.13) (17.60) (17.60) (19.95) (2.32) (2.77) Lehman Brothers Aggregate Index (4.06) (8.97) (8.97) (9.24) 2.98 0.99 5.02

Currency conversions are applied to reference currency NAVs to produce non-base currency performance.Currency conversions are made by Morningstar using the 4PM GMT WM Reuters Spot Rate.

Morgan Stanley SICAV Quarterly Report - March 2008 91 Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum BOND FUNDS & INDICES Launch date % % % % change change change

US Dollar Short Duration Fund I Jul-02 (4.31) (10.43) (10.43) (13.05) 1.13 (0.96) (0.83) US Dollar Short Duration Fund A Jul-02 (4.30) (10.58) (10.58) (13.38) 0.69 (1.38) US Dollar Short Duration Fund B Jul-02 (4.48) (10.82) (10.82) (14.33) (0.32) (2.37) 3 Month US LIBOR Index (4.12) (10.36) (10.36) (11.67) 2.27 (0.10) (0.09)

LIQUIDITY FUNDS & INDICES

Euro Liquidity Fund I Jan-00 0.12 (2.47) (2.47) 4.28 7.28 6.56 8.22 Euro Liquidity Fund A Jan-00 0.10 (2.51) (2.51) 4.12 7.11 6.39 Euro Liquidity Fund B Jan-00 0.04 (2.69) (2.69) 3.34 6.31 5.60 1 Month Euro LIBID Index 0.16 (2.43) (2.43) 4.60 7.63 6.86 8.44

US Dollar Liquidity Fund I Jun-99 (4.13) (10.06) (10.06) (11.70) 1.91 (0.52) 1.04 US Dollar Liquidity Fund A Jul-99 (4.16) (10.13) (10.13) (12.02) 1.52 (0.90) US Dollar Liquidity Fund B Sep-99 (4.22) (10.28) (10.28) (12.20) 1.44 (0.95) Citi 3 Month US T-bill Index (4.20) (10.27) (10.27) (12.06) 1.81 (0.48) 1.12

US Dollar Liquidity Fund IX Mar-98 (4.13) (10.06) (10.06) (11.73) 1.89 (0.53) 0.59 US Dollar Liquidity Fund AX May-98 (4.16) (10.13) (10.13) (12.05) 1.50 (0.91) US Dollar Liquidity Fund BX Dec-98 (4.22) (10.28) (10.28) (12.24) 1.42 (0.96) Citi 3 Month US T-bill Index (4.20) (10.27) (10.27) (12.06) 1.81 (0.48) 0.65

ASSET ALLOCATION FUNDS & INDICES

Global Diversified (Euro) Fund I Dec-01 (4.98) (11.89) (11.89) (8.36) 6.20 10.00 7.42 Global Diversified (Euro) Fund A Dec-01 (5.01) (12.03) (12.03) (8.91) 5.59 9.38 Global Diversified (Euro) Fund B May-02 (5.08) (12.26) (12.26) (9.80) 4.54 8.30 50% MSCI World Index / 50% JPM Global Government Bond Index (3.34) (10.89) (10.89) (8.87) 6.05 8.25 4.44

Global Diversified (USD) Fund I Dec-01 (7.82) (17.36) (17.36) (19.21) 1.84 5.36 1.18 Global Diversified (USD) Fund A Dec-01 (7.87) (17.49) (17.49) (19.67) 1.23 4.75 Global Diversified (USD) Fund B Jul-02 (7.95) (17.68) (17.68) (20.45) 0.26 3.73 50% MSCI World Index / 50% JPM Global Government Bond Index (3.34) (10.89) (10.89) (8.87) 6.05 8.25 4.44

ALTERNATIVE FUNDS & INDICES

FX Alpha Plus RC 200 (Euro) Fund I Feb-07 (0.17) (3.59) (3.59) 3.18 - - 3.87 FX Alpha Plus RC 200 (Euro) Fund A Feb-07 (0.17) (3.66) (3.66) 2.82 - - FX Alpha Plus RC 200 (Euro) Fund B Feb-07 (0.28) (3.89) (3.89) 1.79 - - Euro Overnight Index Average (EONIA) 0.13 (2.46) (2.46) 4.50 - - 4.85

FX Alpha Plus RC 200 (Euro) Fund IX Feb-07 ------FX Alpha Plus RC 200 (Euro) Fund AX Feb-07 ------Euro Overnight Index Average (EONIA) ------1.05

FX Alpha Plus RC 200 (US Dollar) Fund I Feb-07 (4.61) (11.34) (11.34) (12.72) - - (11.47) FX Alpha Plus RC 200 (US Dollar) Fund A Feb-07 (4.46) (11.24) (11.24) (12.82) - - FX Alpha Plus RC 200 (US Dollar) Fund B Feb-07 ------Overnight USD LIBOR Index (4.14) (10.13) (10.13) (11.55) - - (10.63)

FX Alpha Plus RC 200 (US Dollar) Fund IX Feb-07 ------FX Alpha Plus RC 200 (US Dollar) Fund AX Feb-07 - (13.80) (13.80) (16.30) - - Overnight USD LIBOR Index ------0.89

Currency conversions are applied to reference currency NAVs to produce non-base currency performance.Currency conversions are made by Morningstar using the 4PM GMT WM Reuters Spot Rate.

92 Morgan Stanley SICAV Quarterly Report - March 2008 Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum ALTERNATIVE FUNDS & INDICES Launch date % % % % change change change

FX Alpha Plus RC 400 (Euro) Fund I Feb-07 (0.40) (4.55) (4.55) 2.62 - - 3.72 FX Alpha Plus RC 400 (Euro) Fund A Feb-07 (0.44) (4.70) (4.70) 2.10 - - FX Alpha Plus RC 400 (Euro) Fund B Feb-07 (0.52) (4.94) (4.94) 1.06 - - Euro Overnight Index Average (EONIA) 0.13 (2.46) (2.46) 4.50 - - 4.85

FX Alpha Plus RC 400 (Euro) Fund IX Feb-07 ------FX Alpha Plus RC 400 (Euro) Fund AX Feb-07 - (6.57) (6.57) (0.33) - - Euro Overnight Index Average (EONIA) ------1.05

FX Alpha Plus RC 400 (US Dollar) Fund I Feb-07 (4.57) (12.06) (12.06) (13.40) - - (11.87) FX Alpha Plus RC 400 (US Dollar) Fund A Feb-07 (4.61) (12.13) (12.13) (13.76) - - FX Alpha Plus RC 400 (US Dollar) Fund B Feb-07 ------Overnight USD LIBOR Index (4.14) (10.13) (10.13) (11.55) - - (10.63)

FX Alpha Plus RC 400 (US Dollar) Fund IX Feb-07 (4.58) (12.58) (12.58) (14.77) - - (13.16) FX Alpha Plus RC 400 (US Dollar) Fund AX Feb-07 - (14.06) (14.06) (16.40) - - Overnight USD LIBOR Index (4.14) (10.13) (10.13) (11.55) - - (10.63)

FX Alpha Plus RC 800 (Euro) Fund I Feb-07 (0.86) (6.47) (6.47) 1.53 - - 3.28 FX Alpha Plus RC 800 (Euro) Fund A Feb-07 (0.94) (6.59) (6.59) 1.06 - - FX Alpha Plus RC 800 (Euro) Fund B Feb-07 (1.03) (6.84) (6.84) 0.03 - - Euro Overnight Index Average (EONIA) 0.13 (2.46) (2.46) 4.50 - - 4.85

FX Alpha Plus RC 800 (Euro) Fund IX Feb-07 (0.89) (10.04) (10.04) (2.31) - - (0.33) FX Alpha Plus RC 800 (Euro) Fund AX Feb-07 (0.95) (7.21) (7.21) 0.43 - - Euro Overnight Index Average (EONIA) 0.13 (2.46) (2.46) 4.50 - - 4.85

FX Alpha Plus RC 800 (Sterling) Fund I Feb-07 (5.05) (13.55) (13.55) (11.88) - - (9.83) FX Alpha Plus RC 800 (Sterling) Fund A Feb-07 (5.07) (13.67) (13.67) - - - FX Alpha Plus RC 800 (Sterling) Fund B Feb-07 ------Overnight GBP LIBOR Index (4.01) (9.81) (9.81) (9.52) - - (8.67)

FX Alpha Plus RC 800 (Sterling) Fund IX Feb-07 (5.03) (15.21) (15.21) (14.44) - - (12.25) FX Alpha Plus RC 800 (Sterling) Fund AX Feb-07 ------Overnight GBP LIBOR Index (4.01) (9.81) (9.81) (9.52) - - (8.67)

FX Alpha Plus RC 800 (US Dollar) Fund I Feb-07 (5.16) (13.85) (13.85) (13.64) - - (11.49) FX Alpha Plus RC 800 (US Dollar) Fund A Feb-07 (5.20) (13.98) (13.98) (14.37) - - FX Alpha Plus RC 800 (US Dollar) Fund B Feb-07 ------Overnight USD LIBOR Index (4.14) (10.13) (10.13) (11.55) - - (10.63)

FX Alpha Plus RC 800 (US Dollar) Fund IX Feb-07 ------FX Alpha Plus RC 800 (US Dollar) Fund AX Feb-07 - (16.41) (16.41) (17.20) - - Overnight USD LIBOR Index ------0.89

Morgan Stanley SICAV Quarterly Report - March 2008 93 Swiss franc total returns

Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum EQUITY FUNDS & INDICES Launch date % % % % change change change

American Franchise Fund I Dec-05 (5.17) (17.76) (17.76) (26.60) - - (9.64) American Franchise Fund A Dec-05 (5.21) (17.89) (17.89) (27.17) - - American Franchise Fund B Dec-05 (5.32) (18.10) (18.10) (27.87) - - S&P 500 Index (5.65) (20.89) (20.89) (23.10) - - (7.94)

American Franchise Fund AH Oct-06 (1.05) (11.02) (11.02) (14.05) - - (7.61) S&P 500 Index Euro Hedged (5.55) (20.66) (20.66) (23.65) - - (16.59)

Asian Equity Fund I Oct-91 (11.05) (25.67) (25.67) (5.73) 16.27 22.02 6.86 Asian Equity Fund A Feb-97 (11.09) (25.78) (25.78) (6.38) 15.45 21.17 Asian Equity Fund B Jul-97 (11.18) (25.97) (25.97) (7.33) 14.29 19.96 MSCI AC Far East Free ex Japan Index (10.26) (23.74) (23.74) (4.74) 15.84 20.69 6.49

Asian Property Fund I Sep-97 (7.37) (24.95) (24.95) (28.93) 11.60 18.74 1.86 Asian Property Fund A Sep-97 (7.46) (25.08) (25.08) (29.43) 10.82 17.89 Asian Property Fund B Jul-99 (7.54) (25.27) (25.27) (30.13) 9.71 16.93 GPR General Quoted Asia Net Index (10.21) (26.28) (26.28) (28.61) 11.00 19.60 1.88

Emerging Europe, Middle East and North Africa Equity Fund I Oct-00 (10.89) (21.59) (21.59) (2.28) 26.79 38.17 15.39 Emerging Europe, Middle East and North Africa Equity Fund A Oct-00 (10.94) (21.70) (21.70) (2.84) 26.09 37.37 Emerging Europe, Middle East and North Africa Equity Fund B Oct-00 (11.00) (21.88) (21.88) (3.71) 25.07 36.35 MSCI Emerging Europe and Middle East Index (8.04) (23.25) (23.25) (8.26) 18.81 27.64 7.99

Emerging Markets Equity Fund I Jul-93 (12.07) (25.83) (25.83) (5.29) 21.98 27.25 7.29 Emerging Markets Equity Fund A Feb-97 (12.11) (25.96) (25.96) (5.83) 21.37 26.58 Emerging Markets Equity Fund B Jul-97 (12.17) (26.12) (26.12) (6.75) 20.16 25.38 MSCI Emerging Markets Free (Net) Index (10.26) (22.24) (22.24) (1.70) 21.44 27.32 7.01

European Equity Fund I Mar-91 (5.68) (21.99) (21.99) (18.68) 5.24 12.68 7.88 European Equity Fund A Feb-97 (5.74) (22.11) (22.11) (19.14) 4.55 11.94 European Equity Fund B Jul-97 (5.79) (22.29) (22.29) (19.95) 3.52 10.83 MSCI Europe (Net) Index (4.85) (20.17) (20.17) (18.84) 7.94 15.50 8.22

European Equity Opportunities Fund I Dec-06 (6.82) (23.70) (23.70) (20.00) - - (14.53) European Equity Opportunities Fund A Dec-06 (6.87) (23.83) (23.83) (20.56) - - European Equity Opportunities Fund B Dec-06 (6.94) (24.02) (24.02) (21.33) - - MSCI Europe (Net) Index (4.85) (20.17) (20.17) (18.84) - - (12.77)

European Equity Opportunities Fund IX Dec-06 (6.75) (23.69) (23.69) (20.81) - - (15.27) European Equity Opportunities Fund AX Dec-06 (6.83) (23.83) (23.83) (21.11) - - MSCI Europe (Net) Index (4.85) (20.17) (20.17) (18.84) - - (12.77)

European Property Fund I Sep-97 (5.21) (7.03) (7.03) (38.06) 7.13 19.07 9.33 European Property Fund A Sep-97 (5.27) (7.22) (7.22) (38.52) 6.37 18.25 European Property Fund B Jul-98 (5.36) (7.48) (7.48) (39.16) 5.29 17.07 GPR General Quoted Europe Net Index (3.50) (8.11) (8.11) (34.59) 8.32 19.84 10.15

European Small Cap Value Fund I Nov-01 (4.55) (17.69) (17.69) (24.59) 8.69 19.69 10.03 European Small Cap Value Fund A Nov-01 (4.60) (17.85) (17.85) (25.15) 7.90 18.87 European Small Cap Value Fund B Nov-01 (4.69) (18.05) (18.05) (25.88) 6.83 17.69 MSCI European Small Cap Index (4.29) (17.19) (17.19) (26.76) 9.97 23.18 10.88

European Systematic Equity Fund I Dec-05 (5.59) (20.99) (20.99) (21.26) - - (0.26) European Systematic Equity Fund A Dec-05 (5.64) (21.10) (21.10) (21.64) - - MSCI Europe (Net) Index (4.85) (20.17) (20.17) (18.84) - - 1.94

Eurozone Equity Opportunities Fund I Apr-00 (4.72) (23.88) (23.88) (20.75) 6.06 11.55 (2.95) Eurozone Equity Opportunities Fund A Apr-00 (4.77) (24.06) (24.06) (21.35) 5.41 10.89 Eurozone Equity Opportunities Fund B Apr-00 (4.80) (24.26) (24.26) (22.16) 4.35 9.77 MSCI EMU (Net) Index (3.72) (20.66) (20.66) (17.07) 8.92 16.13 (0.74)

Global Brands Fund I Oct-00 (6.02) (18.85) (18.85) (21.66) 3.55 9.51 3.48 Global Brands Fund A Oct-00 (6.09) (19.00) (19.00) (22.23) 2.81 8.75 Global Brands Fund B Oct-00 (6.15) (19.20) (19.20) (22.99) 1.78 7.68 MSCI World (Net) Index (6.15) (20.55) (20.55) (21.62) 3.03 8.94 (4.77)

Currency conversions are applied to reference currency NAVs to produce non-base currency performance.Currency conversions are made by Morningstar using the 4PM GMT WM Reuters Spot Rate.

94 Morgan Stanley SICAV Quarterly Report - March 2008 Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum EQUITY FUNDS & INDICES Launch date % % % % change change change

Global Equity Growth Fund I Jul-06 (6.33) (21.77) (21.77) (16.83) - - (1.87) Global Equity Growth Fund A Jul-06 (6.41) (21.91) (21.91) (17.38) - - Global Equity Growth Fund B Jul-06 (6.49) (22.09) (22.09) (18.20) - - MSCI World (Net) Index (6.15) (20.55) (20.55) (21.62) - - (6.37)

Global Equity Growth Fund IX Jul-06 (6.37) (21.80) (21.80) (17.16) - - (2.11) Global Equity Growth Fund AX Jul-06 (6.41) (21.89) (21.89) (17.43) - - MSCI World (Net) Index (6.15) (20.55) (20.55) (21.62) - - (6.37)

Global Property Fund I Oct-06 (4.55) (14.53) (14.53) (33.94) - - (18.60) Global Property Fund A Oct-06 (4.63) (14.66) (14.66) (34.41) - - Global Property Fund B Oct-06 (4.75) (14.90) (14.90) (35.07) - - FTSE EPRA/NAREIT Global Real Estate Index (Net, equal weighted) (4.77) (15.71) (15.71) (33.44) - - (17.77)

Global Property Fund IX Oct-06 (4.58) (15.10) (15.10) (34.83) - - (19.53) Global Property Fund AX Oct-06 ------FTSE EPRA/NAREIT Global Real Estate Index (Net, equal weighted) (4.77) (15.71) (15.71) (33.44) - - (17.77)

Global Small Cap Value Fund I Mar-98 (5.35) (18.23) (18.23) (29.21) 0.84 11.50 3.98 Global Small Cap Value Fund A Mar-98 (5.38) (18.36) (18.36) (29.72) 0.13 10.74 Global Small Cap Value Fund B Mar-98 (5.49) (18.56) (18.56) (30.41) (0.86) 9.67 MSCI World Small Cap Index (6.20) (19.74) (19.74) (28.65) 1.53 13.27 3.52

Global Systematic Equity Fund I Jul-00 (7.90) (22.58) (22.58) (26.13) 0.45 6.25 (5.61) Global Systematic Equity Fund A Jul-00 (7.93) (22.67) (22.67) (26.46) (0.01) 5.74 Global Systematic Equity Fund B Jul-00 (7.99) (22.86) (22.86) (27.19) (0.99) 4.67 MSCI World (Net) Index (6.15) (20.55) (20.55) (21.62) 3.03 8.94 (4.18)

Global Value Equity Fund I Nov-89 (7.45) (21.99) (21.99) (24.41) 0.77 8.37 6.23 Global Value Equity Fund A Feb-97 (7.51) (22.11) (22.11) (24.96) 0.06 7.62 Global Value Equity Fund B Apr-97 (7.58) (22.32) (22.32) (25.71) (0.94) 6.55 MSCI World (Net) Index (6.15) (20.55) (20.55) (21.62) 3.03 8.94 4.34

Indian Equity Fund I Nov-06 (15.73) (37.74) (37.74) (1.44) - - (2.94) Indian Equity Fund A Nov-06 (15.77) (37.86) (37.86) (2.18) - - Indian Equity Fund B Nov-06 (15.84) (38.00) (38.00) (3.14) - - MSCI India Blend Index (17.26) (36.22) (36.22) 5.84 - - 5.65

Indian Equity Fund IX Nov-06 ------Indian Equity Fund AX Nov-06 ------MSCI India Blend Index ------1.08

Japanese Equity Advantage Fund I May-06 (3.02) (17.00) (17.00) (25.56) - - (14.62) Japanese Equity Advantage Fund A May-06 (3.07) (17.13) (17.13) (26.04) - - Japanese Equity Advantage Fund B May-06 (3.15) (17.34) (17.34) (26.78) - - TOPIX Index (8.38) (18.63) (18.63) (30.86) - - (16.18)

Japanese Equity Advantage Fund IX May-06 ------Japanese Equity Advantage Fund AX May-06 ------TOPIX Index ------0.72

Japanese Equity Advantage Fund AH Oct-06 (3.16) (20.23) (20.23) (24.79) - - (14.35) Topix Euro Hedged Benchmark (Total Return) ------

Japanese Equity Growth Fund I Jul-00 (5.11) (20.29) (20.29) (33.47) (7.33) 4.72 (9.04) Japanese Equity Growth Fund A Jul-00 (5.17) (20.44) (20.44) (33.96) (8.00) 3.99 Japanese Equity Growth Fund B Jul-00 (5.24) (20.63) (20.63) (34.56) (8.88) 3.06 TOPIX Index (8.38) (18.63) (18.63) (30.86) (1.65) 7.35 (6.55)

Japanese Systematic Equity Fund I Jul-06 (6.57) (17.51) (17.51) (31.85) - - (16.79) Japanese Systematic Equity Fund A Jul-06 (6.61) (17.61) (17.61) (32.17) - - TOPIX Index (8.38) (18.63) (18.63) (30.86) - - (17.06)

Currency conversions are applied to reference currency NAVs to produce non-base currency performance.Currency conversions are made by Morningstar using the 4PM GMT WM Reuters Spot Rate.

Morgan Stanley SICAV Quarterly Report - March 2008 95 Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum EQUITY FUNDS & INDICES Launch date % % % % change change change

Japanese Systematic Equity Fund IX Jul-06 ------Japanese Systematic Equity Fund AX Jul-06 ------TOPIX Index ------0.73

Japanese Value Equity Fund I May-93 (6.87) (18.24) (18.24) (27.18) 1.53 8.08 (1.16) Japanese Value Equity Fund A Feb-97 (6.93) (18.39) (18.39) (27.71) 0.79 7.32 Japanese Value Equity Fund B Jun-97 (7.01) (18.59) (18.59) (28.43) (0.22) 6.25 TOPIX Index (8.38) (18.63) (18.63) (30.86) (1.65) 7.35 (2.92)

Latin American Equity Fund I Aug-94 (12.08) (16.69) (16.69) 1.09 35.58 38.92 12.92 Latin American Equity Fund A Feb-97 (12.14) (16.84) (16.84) 0.41 34.67 38.01 Latin American Equity Fund B Jun-97 (12.22) (17.05) (17.05) (0.59) 33.33 36.64 MSCI EM Latin America Index (8.46) (13.89) (13.89) 13.30 37.22 41.27 11.45

US Equity Fund I Dec-01 (7.23) (21.15) (21.15) (22.25) (1.72) 3.56 (5.84) US Equity Fund A Dec-01 (7.25) (21.26) (21.26) (23.68) (2.69) 2.81 US Equity Fund B Dec-01 (7.34) (21.46) (21.46) (24.47) (3.67) 1.78 S&P 500 Index (5.65) (20.89) (20.89) (23.10) (0.53) 4.58 (4.13)

US Equity Growth Fund I Aug-92 (7.07) (23.14) (23.14) (16.31) 3.66 4.55 7.21 US Equity Growth Fund A Feb-97 (7.13) (23.29) (23.29) (16.94) 2.85 3.78 US Equity Growth Fund B Jun-97 (7.22) (23.47) (23.47) (17.78) 1.83 2.75 Russell 1000 Growth Net 30% Withholding Tax TR Index (5.85) (21.61) (21.61) (19.87) (0.43) 2.96 5.92

US Equity Growth Fund AH Oct-06 (3.01) (17.38) (17.38) (3.71) - - 1.24 Russell 1000 Growth Index Euro Hedged (1.58) (14.71) (14.71) (6.57) - - (1.20)

US Property Fund I Jan-96 0.31 (8.06) (8.06) (32.42) 6.41 12.72 12.00 US Property Fund A Feb-97 0.26 (8.21) (8.21) (32.90) 5.65 11.94 US Property Fund B Mar-97 0.17 (8.46) (8.46) (33.59) 4.59 10.83 FTSE NAREIT Equity REITs (Net) Index 0.49 (11.73) (11.73) (33.94) 3.57 9.53 9.04

US Small Cap Growth Fund I Aug-91 (6.42) (23.31) (23.31) (28.31) (1.79) 7.59 6.59 US Small Cap Growth Fund A Feb-97 (6.48) (23.43) (23.43) (28.83) (2.48) 6.85 US Small Cap Growth Fund B Jun-97 (6.57) (23.63) (23.63) (29.54) (3.46) 5.77 Russell 2000 Growth Net 30% Withholding Tax TR Index (5.82) (23.88) (23.88) (26.35) (0.79) 7.16 3.64

US Systematic Equity Fund I May-06 (8.58) (24.32) (24.32) (26.92) - - (9.07) US Systematic Equity Fund A May-06 (8.64) (24.42) (24.42) (27.26) - - S&P 500 (Net) Index (5.70) (21.02) (21.02) (23.55) - - (7.39)

US Systematic Equity Fund IX May-06 (8.61) (24.53) (24.53) (27.31) - - (9.51) US Systematic Equity Fund AX May-06 (8.61) (24.44) (24.44) (27.32) - - S&P 500 (Net) Index (5.70) (21.02) (21.02) (23.55) - - (7.39)

US Value Equity Fund I Jul-99 (8.90) (20.58) (20.58) (29.20) (3.53) 4.45 (3.12) US Value Equity Fund A Jul-99 (8.91) (20.72) (20.72) (29.73) (4.26) 3.68 US Value Equity Fund B Jul-99 (9.01) (20.91) (20.91) (30.43) (5.21) 2.64 S&P 500 Index (5.65) (20.89) (20.89) (23.10) (0.53) 4.58 (3.10)

US Value Equity Fund AH Oct-06 (4.79) (15.08) (15.08) (17.93) - - (9.96) S&P 500 Index Euro Hedged (5.55) (20.66) (20.66) (23.65) - - (16.59)

BOND FUNDS & INDICES

Emerging Markets Debt Fund I Apr-95 (5.21) (12.02) (12.02) (14.99) 4.07 5.18 13.00 Emerging Markets Debt Fund A Feb-97 (5.25) (12.13) (12.13) (15.48) 3.48 4.58 Emerging Markets Debt Fund B Jul-97 (5.34) (12.36) (12.36) (16.33) 2.45 3.53 JPM Emerging Markets Bond Index Global (5.29) (12.09) (12.09) (15.38) 3.03 4.64 12.21

Currency conversions are applied to reference currency NAVs to produce non-base currency performance.Currency conversions are made by Morningstar using the 4PM GMT WM Reuters Spot Rate.

96 Morgan Stanley SICAV Quarterly Report - March 2008 Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum BOND FUNDS & INDICES Launch date % % % % change change change

Emerging Markets Debt Fund AH Oct-06 (1.00) (4.78) (4.78) (0.58) - - 3.64 JPM Emerging Markets Bond Index Global Euro Hedged (1.03) (4.58) (4.58) (0.10) - - 4.17

Emerging Markets Domestic Debt Fund I Feb-07 (5.74) (10.89) (10.89) (9.63) - - (6.80) Emerging Markets Domestic Debt Fund A Feb-07 (5.78) (11.01) (11.01) (10.13) - - Emerging Markets Domestic Debt Fund B Feb-07 (5.88) (11.25) (11.25) (11.04) - - JPM GBI - EM Global Diversified (6.08) (10.68) (10.68) (5.63) - - (2.55)

Emerging Markets Domestic Debt Fund IX Feb-07 (5.73) (14.81) (14.81) (14.50) - - (11.44) Emerging Markets Domestic Debt Fund AX Feb-07 (5.80) (14.57) (14.57) (14.46) - - JPM GBI - EM Global Diversified (6.08) (10.68) (10.68) (5.63) - - (2.55)

Euro Bond Fund I Dec-98 (2.14) (3.95) (3.95) (1.64) 2.11 4.27 3.22 Euro Bond Fund A Dec-98 (2.10) (4.07) (4.07) (1.92) 1.70 3.85 Euro Bond Fund B Dec-98 (2.20) (4.33) (4.33) (2.96) 0.70 2.80 Lehman Euro-Aggregate Index (1.86) (3.57) (3.57) (0.66) 2.67 4.87 3.96

Euro Corporate Bond Fund I Sep-01 (3.20) (6.92) (6.92) (6.83) 0.74 4.30 4.63 Euro Corporate Bond Fund A Sep-01 (3.26) (7.03) (7.03) (7.25) 0.31 3.87 Euro Corporate Bond Fund B Sep-01 (3.33) (7.27) (7.27) (8.17) (0.69) 2.83 Lehman Euro-Aggregate: Corporate Index (2.74) (5.62) (5.62) (4.58) 1.39 4.58 5.39

Euro Strategic Bond Fund I Feb-91 (2.90) (5.13) (5.13) (3.78) 1.36 4.08 5.86 Euro Strategic Bond Fund A Feb-97 (2.92) (5.22) (5.22) (4.19) 0.95 3.65 Euro Strategic Bond Fund B Sep-97 (3.01) (5.47) (5.47) (5.14) (0.06) 2.62 Lehman Euro-Aggregate Index (1.86) (3.57) (3.57) (0.66) 2.67 4.87 6.48

Euro Total Return Bond Fund I Mar-07 (3.41) (7.53) (7.53) (6.64) - - (6.64) Euro Total Return Bond Fund A Mar-07 (3.45) (7.61) (7.61) (6.98) - - Euro Total Return Bond Fund B Mar-07 (3.52) (7.82) (7.82) (7.91) - - One Month Euribor Index (0.75) (4.32) (4.32) 0.59 - - 0.59

Euro Total Return Bond Fund IX Mar-07 (3.41) (9.90) (9.90) (9.91) - - (9.91) Euro Total Return Bond Fund AX Mar-07 (3.45) (9.83) (9.83) (9.98) - - One Month Euribor Index (0.75) (4.32) (4.32) 0.59 - - 0.59

European Currencies High Yield Bond Fund I Dec-98 (1.51) (10.28) (10.28) (10.39) 2.40 8.68 (3.01) European Currencies High Yield Bond Fund A Dec-98 (1.44) (10.34) (10.34) (10.74) 1.99 8.20 European Currencies High Yield Bond Fund B Dec-98 (1.57) (10.59) (10.59) (11.68) 0.95 7.12 ML European Currency Constrained High Yield Index (1.32) (11.19) (11.19) (12.85) 2.33 9.31 1.56

Global Bond Fund I Nov-89 (2.97) (5.59) (5.59) (5.44) (0.41) 1.06 4.21 Global Bond Fund A Feb-97 (3.04) (5.72) (5.72) (5.88) (0.83) 0.61 Global Bond Fund B Jun-97 (3.08) (5.91) (5.91) (6.79) (1.81) (0.39) Citigroup World Government Bond Index (2.19) (4.20) (4.20) (2.55) 0.79 1.56 5.03

Global Convertible Bond (Euro) Fund I Jul-02 (3.65) (10.31) (10.31) (6.03) 3.99 6.54 6.67 Global Convertible Bond (Euro) Fund A Jul-02 (3.69) (10.41) (10.41) (6.44) 3.50 6.04 Global Convertible Bond (Euro) Fund B Jul-02 (3.78) (10.63) (10.63) (7.37) 2.48 4.98 Merrill Lynch G300 Global Convertible Index Euro Hedged (3.55) (11.06) (11.06) (6.02) 7.14 8.28 8.52

Global Convertible Bond (USD) Fund I Jul-02 (7.87) (17.26) (17.26) (20.28) (1.04) (0.16) (0.70) Global Convertible Bond (USD) Fund A Jul-02 (7.91) (17.35) (17.35) (20.66) (1.49) (0.61) Global Convertible Bond (USD) Fund B Jul-02 (7.98) (17.54) (17.54) (21.44) (2.46) (1.60) Merrill Lynch G300 Global Convertible Index USD Hedged (7.81) (18.31) (18.31) (21.21) 1.08 0.98 0.12

Short Maturity Euro Bond Fund I Aug-94 (1.79) (4.33) (4.33) (0.80) 2.30 3.41 4.48 Short Maturity Euro Bond Fund A Feb-97 (1.77) (4.44) (4.44) (1.24) 1.89 2.98 Short Maturity Euro Bond Fund B Oct-98 (1.90) (4.66) (4.66) (2.21) 0.88 1.97 Lehman Euro-Aggregate: Treasury 1-3 Years Index (1.42) (3.83) (3.83) 0.95 3.26 4.19 5.20

US Bond Fund I Aug-92 (10.84) (18.90) (18.90) (21.96) (4.62) (4.04) 3.42 US Bond Fund A Feb-97 (10.89) (19.03) (19.03) (22.31) (5.03) (4.45) US Bond Fund B Sep-97 (10.94) (19.20) (19.20) (23.07) (5.98) (5.40) Lehman Brothers Aggregate Index (4.92) (10.75) (10.75) (12.77) (0.88) (1.75) 4.83

Currency conversions are applied to reference currency NAVs to produce non-base currency performance.Currency conversions are made by Morningstar using the 4PM GMT WM Reuters Spot Rate.

Morgan Stanley SICAV Quarterly Report - March 2008 97 Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum BOND FUNDS & INDICES Launch date % % % % change change change

US Dollar Short Duration Fund I Jul-02 (5.16) (12.18) (12.18) (16.44) (2.66) (3.63) (4.59) US Dollar Short Duration Fund A Jul-02 (5.16) (12.33) (12.33) (16.75) (3.09) (4.05) US Dollar Short Duration Fund B Jul-02 (5.33) (12.56) (12.56) (17.66) (4.06) (5.01) 3 Month US LIBOR Index (4.97) (12.10) (12.10) (15.11) (1.57) (2.80) (3.88)

LIQUIDITY FUNDS & INDICES

Euro Liquidity Fund I Jan-00 (0.78) (4.37) (4.37) 0.22 3.25 3.68 2.60 Euro Liquidity Fund A Jan-00 (0.80) (4.41) (4.41) 0.07 3.09 3.52 Euro Liquidity Fund B Jan-00 (0.85) (4.59) (4.59) (0.68) 2.32 2.74 1 Month Euro LIBID Index (0.74) (4.33) (4.33) 0.53 3.60 3.97 2.81

US Dollar Liquidity Fund I Jun-99 (4.99) (11.82) (11.82) (15.13) (1.91) (3.21) (1.88) US Dollar Liquidity Fund A Jul-99 (5.01) (11.88) (11.88) (15.44) (2.29) (3.58) US Dollar Liquidity Fund B Sep-99 (5.07) (12.03) (12.03) (15.62) (2.36) (3.63) Citi 3 Month US T-bill Index (5.06) (12.02) (12.02) (15.48) (2.01) (3.17) (1.80)

US Dollar Liquidity Fund IX Mar-98 (4.99) (11.82) (11.82) (15.17) (1.93) (3.22) (0.75) US Dollar Liquidity Fund AX May-98 (5.01) (11.88) (11.88) (15.47) (2.31) (3.59) US Dollar Liquidity Fund BX Dec-98 (5.07) (12.03) (12.03) (15.65) (2.38) (3.64) Citi 3 Month US T-bill Index (5.06) (12.02) (12.02) (15.48) (2.01) (3.17) (0.69)

ASSET ALLOCATION FUNDS & INDICES

Global Diversified (Euro) Fund I Dec-01 (5.83) (13.61) (13.61) (11.92) 2.22 7.03 3.32 Global Diversified (Euro) Fund A Dec-01 (5.86) (13.74) (13.74) (12.45) 1.63 6.42 Global Diversified (Euro) Fund B May-02 (5.93) (13.97) (13.97) (13.31) 0.62 5.37 50% MSCI World Index / 50% JPM Global Government Bond Index (4.21) (12.63) (12.63) (12.42) 2.08 5.33 0.46

Global Diversified (USD) Fund I Dec-01 (8.65) (18.97) (18.97) (22.36) (1.98) 2.51 (2.67) Global Diversified (USD) Fund A Dec-01 (8.69) (19.10) (19.10) (22.80) (2.56) 1.91 Global Diversified (USD) Fund B Jul-02 (8.77) (19.28) (19.28) (23.55) (3.49) 0.92 50% MSCI World Index / 50% JPM Global Government Bond Index (4.21) (12.63) (12.63) (12.42) 2.08 5.33 0.46

ALTERNATIVE FUNDS & INDICES

FX Alpha Plus RC 200 (Euro) Fund I Feb-07 (1.06) (5.47) (5.47) (0.83) - - 0.42 FX Alpha Plus RC 200 (Euro) Fund A Feb-07 (1.06) (5.54) (5.54) (1.18) - - FX Alpha Plus RC 200 (Euro) Fund B Feb-07 (1.17) (5.76) (5.76) (2.18) - - Euro Overnight Index Average (EONIA) (0.76) (4.36) (4.36) 0.43 - - 1.37

FX Alpha Plus RC 200 (Euro) Fund IX Feb-07 ------FX Alpha Plus RC 200 (Euro) Fund AX Feb-07 ------Euro Overnight Index Average (EONIA) ------1.01

FX Alpha Plus RC 200 (US Dollar) Fund I Feb-07 (5.46) (13.07) (13.07) (16.12) - - (14.41) FX Alpha Plus RC 200 (US Dollar) Fund A Feb-07 (5.32) (12.97) (12.97) (16.21) - - FX Alpha Plus RC 200 (US Dollar) Fund B Feb-07 ------Overnight USD LIBOR Index (5.00) (11.88) (11.88) (14.99) - - (13.60)

FX Alpha Plus RC 200 (US Dollar) Fund IX Feb-07 ------FX Alpha Plus RC 200 (US Dollar) Fund AX Feb-07 - (15.48) (15.48) (19.56) - - Overnight USD LIBOR Index ------0.85

Currency conversions are applied to reference currency NAVs to produce non-base currency performance.Currency conversions are made by Morningstar using the 4PM GMT WM Reuters Spot Rate.

98 Morgan Stanley SICAV Quarterly Report - March 2008 Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum ALTERNATIVE FUNDS & INDICES Launch date % % % % change change change

FX Alpha Plus RC 400 (Euro) Fund I Feb-07 (1.29) (6.41) (6.41) (1.38) - - 0.28 FX Alpha Plus RC 400 (Euro) Fund A Feb-07 (1.33) (6.56) (6.56) (1.88) - - FX Alpha Plus RC 400 (Euro) Fund B Feb-07 (1.41) (6.79) (6.79) (2.87) - - Euro Overnight Index Average (EONIA) (0.76) (4.36) (4.36) 0.43 - - 1.37

FX Alpha Plus RC 400 (Euro) Fund IX Feb-07 ------FX Alpha Plus RC 400 (Euro) Fund AX Feb-07 - (8.40) (8.40) (4.21) - - Euro Overnight Index Average (EONIA) ------1.01

FX Alpha Plus RC 400 (US Dollar) Fund I Feb-07 (5.43) (13.77) (13.77) (16.77) - - (14.80) FX Alpha Plus RC 400 (US Dollar) Fund A Feb-07 (5.47) (13.84) (13.84) (17.12) - - FX Alpha Plus RC 400 (US Dollar) Fund B Feb-07 ------Overnight USD LIBOR Index (5.00) (11.88) (11.88) (14.99) - - (13.60)

FX Alpha Plus RC 400 (US Dollar) Fund IX Feb-07 (5.43) (14.29) (14.29) (18.08) - - (16.04) FX Alpha Plus RC 400 (US Dollar) Fund AX Feb-07 - (15.74) (15.74) (19.66) - - Overnight USD LIBOR Index (5.00) (11.88) (11.88) (14.99) - - (13.60)

FX Alpha Plus RC 800 (Euro) Fund I Feb-07 (1.75) (8.29) (8.29) (2.42) - - (0.15) FX Alpha Plus RC 800 (Euro) Fund A Feb-07 (1.83) (8.41) (8.41) (2.87) - - FX Alpha Plus RC 800 (Euro) Fund B Feb-07 (1.91) (8.65) (8.65) (3.87) - - Euro Overnight Index Average (EONIA) (0.76) (4.36) (4.36) 0.43 - - 1.37

FX Alpha Plus RC 800 (Euro) Fund IX Feb-07 (1.77) (11.80) (11.80) (6.11) - - (3.64) FX Alpha Plus RC 800 (Euro) Fund AX Feb-07 (1.83) (9.02) (9.02) (3.48) - - Euro Overnight Index Average (EONIA) (0.76) (4.36) (4.36) 0.43 - - 1.37

FX Alpha Plus RC 800 (Sterling) Fund I Feb-07 (5.90) (15.24) (15.24) (15.31) - - (12.82) FX Alpha Plus RC 800 (Sterling) Fund A Feb-07 (5.91) (15.36) (15.36) - - - FX Alpha Plus RC 800 (Sterling) Fund B Feb-07 ------Overnight GBP LIBOR Index (4.87) (11.56) (11.56) (13.04) - - (11.70)

FX Alpha Plus RC 800 (Sterling) Fund IX Feb-07 (5.88) (16.87) (16.87) (17.77) - - (15.16) FX Alpha Plus RC 800 (Sterling) Fund AX Feb-07 ------Overnight GBP LIBOR Index (4.87) (11.56) (11.56) (13.04) - - (11.70)

FX Alpha Plus RC 800 (US Dollar) Fund I Feb-07 (6.00) (15.53) (15.53) (17.00) - - (14.43) FX Alpha Plus RC 800 (US Dollar) Fund A Feb-07 (6.05) (15.65) (15.65) (17.71) - - FX Alpha Plus RC 800 (US Dollar) Fund B Feb-07 ------Overnight USD LIBOR Index (5.00) (11.88) (11.88) (14.99) - - (13.60)

FX Alpha Plus RC 800 (US Dollar) Fund IX Feb-07 ------FX Alpha Plus RC 800 (US Dollar) Fund AX Feb-07 - (18.04) (18.04) (20.42) - - Overnight USD LIBOR Index ------0.85

Morgan Stanley SICAV Quarterly Report - March 2008 99 Pound sterling total returns

Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum EQUITY FUNDS & INDICES Launch date % % % % change change change

American Franchise Fund I Dec-05 0.16 (5.71) (5.71) (10.60) - - (3.81) American Franchise Fund A Dec-05 0.12 (5.87) (5.87) (11.28) - - American Franchise Fund B Dec-05 0.01 (6.10) (6.10) (12.14) - - S&P 500 Index (0.35) (9.30) (9.30) (6.33) - - (2.01)

American Franchise Fund AH Oct-06 4.52 2.02 2.02 4.69 - - 5.51 S&P 500 Index Euro Hedged (0.24) (9.04) (9.04) (7.00) - - (4.75)

Asian Equity Fund I Oct-91 (6.04) (14.78) (14.78) 14.83 21.66 24.07 8.58 Asian Equity Fund A Feb-97 (6.09) (14.91) (14.91) 14.04 20.80 23.20 Asian Equity Fund B Jul-97 (6.18) (15.13) (15.13) 12.88 19.59 21.97 MSCI AC Far East Free ex Japan Index (5.21) (12.58) (12.58) 16.03 21.21 22.71 8.20

Asian Property Fund I Sep-97 (2.16) (13.95) (13.95) (13.43) 16.77 20.73 3.59 Asian Property Fund A Sep-97 (2.26) (14.11) (14.11) (14.04) 15.96 19.87 Asian Property Fund B Jul-99 (2.33) (14.32) (14.32) (14.89) 14.80 18.89 GPR General Quoted Asia Net Index (5.15) (15.48) (15.48) (13.04) 16.15 21.61 3.61

Emerging Europe, Middle East and North Africa Equity Fund I Oct-00 (5.88) (10.10) (10.10) 19.04 32.67 40.49 19.89 Emerging Europe, Middle East and North Africa Equity Fund A Oct-00 (5.93) (10.23) (10.23) 18.35 31.94 39.68 Emerging Europe, Middle East and North Africa Equity Fund B Oct-00 (5.99) (10.44) (10.44) 17.29 30.87 38.63 MSCI Emerging Europe and Middle East Index (2.87) (12.01) (12.01) 11.74 24.32 29.78 12.20

Emerging Markets Equity Fund I Jul-93 (7.12) (14.97) (14.97) 15.36 27.63 29.38 8.31 Emerging Markets Equity Fund A Feb-97 (7.16) (15.11) (15.11) 14.71 27.00 28.71 Emerging Markets Equity Fund B Jul-97 (7.23) (15.30) (15.30) 13.58 25.74 27.49 MSCI Emerging Markets Free (Net) Index (5.21) (10.85) (10.85) 19.73 27.07 29.46 8.03

European Equity Fund I Mar-91 (0.37) (10.56) (10.56) (0.94) 10.12 14.57 9.49 European Equity Fund A Feb-97 (0.44) (10.70) (10.70) (1.50) 9.40 13.82 European Equity Fund B Jul-97 (0.49) (10.91) (10.91) (2.49) 8.32 12.69 MSCI Europe (Net) Index 0.50 (8.48) (8.48) (1.14) 12.94 17.43 9.84

European Equity Opportunities Fund I Dec-06 (1.58) (12.53) (12.53) (2.55) - - (0.10) European Equity Opportunities Fund A Dec-06 (1.63) (12.68) (12.68) (3.24) - - European Equity Opportunities Fund B Dec-06 (1.70) (12.89) (12.89) (4.17) - - MSCI Europe (Net) Index 0.50 (8.48) (8.48) (1.14) - - 1.96

European Equity Opportunities Fund IX Dec-06 (1.51) (12.51) (12.51) (3.54) - - (0.96) European Equity Opportunities Fund AX Dec-06 (1.58) (12.68) (12.68) (3.90) - - MSCI Europe (Net) Index 0.50 (8.48) (8.48) (1.14) - - 1.96

European Property Fund I Sep-97 0.12 6.59 6.59 (24.55) 12.10 21.06 11.19 European Property Fund A Sep-97 0.06 6.37 6.37 (25.11) 11.30 20.23 European Property Fund B Jul-98 (0.03) 6.07 6.07 (25.89) 10.18 19.03 GPR General Quoted Europe Net Index 1.93 5.35 5.35 (20.33) 13.35 21.85 12.02

European Small Cap Value Fund I Nov-01 0.82 (5.63) (5.63) (8.15) 13.73 21.70 13.17 European Small Cap Value Fund A Nov-01 0.76 (5.81) (5.81) (8.82) 12.91 20.87 European Small Cap Value Fund B Nov-01 0.67 (6.04) (6.04) (9.72) 11.79 19.66 MSCI European Small Cap Index 1.10 (5.06) (5.06) (10.79) 15.07 25.24 14.04

European Systematic Equity Fund I Dec-05 (0.28) (9.42) (9.42) (4.09) - - 6.18 European Systematic Equity Fund A Dec-05 (0.33) (9.55) (9.55) (4.56) - - MSCI Europe (Net) Index 0.50 (8.48) (8.48) (1.14) - - 8.51

Eurozone Equity Opportunities Fund I Apr-00 0.64 (12.73) (12.73) (3.47) 10.98 13.42 0.98 Eurozone Equity Opportunities Fund A Apr-00 0.59 (12.94) (12.94) (4.20) 10.30 12.75 Eurozone Equity Opportunities Fund B Apr-00 0.56 (13.16) (13.16) (5.18) 9.20 11.62 MSCI EMU (Net) Index 1.69 (9.04) (9.04) 1.02 13.97 18.08 3.28

Global Brands Fund I Oct-00 (0.73) (6.96) (6.96) (4.58) 8.35 11.35 7.52 Global Brands Fund A Oct-00 (0.80) (7.14) (7.14) (5.27) 7.57 10.57 Global Brands Fund B Oct-00 (0.87) (7.37) (7.37) (6.20) 6.50 9.48 MSCI World (Net) Index (0.87) (8.92) (8.92) (4.53) 7.81 10.77 (1.05)

Currency conversions are applied to reference currency NAVs to produce non-base currency performance.Currency conversions are made by Morningstar using the 4PM GMT WM Reuters Spot Rate.

100 Morgan Stanley SICAV Quarterly Report - March 2008 Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum EQUITY FUNDS & INDICES Launch date % % % % change change change

Global Equity Growth Fund I Jul-06 (1.06) (10.31) (10.31) 1.30 - - 7.80 Global Equity Growth Fund A Jul-06 (1.14) (10.47) (10.47) 0.64 - - Global Equity Growth Fund B Jul-06 (1.23) (10.68) (10.68) (0.37) - - MSCI World (Net) Index (0.87) (8.92) (8.92) (4.53) - - 2.85

Global Equity Growth Fund IX Jul-06 (1.10) (10.35) (10.35) 0.90 - - 7.54 Global Equity Growth Fund AX Jul-06 (1.14) (10.45) (10.45) 0.57 - - MSCI World (Net) Index (0.87) (8.92) (8.92) (4.53) - - 2.85

Global Property Fund I Oct-06 0.82 (2.01) (2.01) (19.54) - - (7.05) Global Property Fund A Oct-06 0.74 (2.16) (2.16) (20.10) - - Global Property Fund B Oct-06 0.61 (2.44) (2.44) (20.91) - - FTSE EPRA/NAREIT Global Real Estate Index (Net, equal weighted) 0.59 (3.36) (3.36) (18.93) - - (6.10)

Global Property Fund IX Oct-06 0.78 (2.67) (2.67) (20.62) - - (8.11) Global Property Fund AX Oct-06 ------FTSE EPRA/NAREIT Global Real Estate Index (Net, equal weighted) 0.59 (3.36) (3.36) (18.93) - - (6.10)

Global Small Cap Value Fund I Mar-98 (0.02) (6.26) (6.26) (13.77) 5.52 13.36 6.73 Global Small Cap Value Fund A Mar-98 (0.06) (6.40) (6.40) (14.39) 4.78 12.60 Global Small Cap Value Fund B Mar-98 (0.17) (6.63) (6.63) (15.24) 3.74 11.51 MSCI World Small Cap Index (0.93) (7.98) (7.98) (13.09) 6.24 15.17 6.26

Global Systematic Equity Fund I Jul-00 (2.72) (11.25) (11.25) (10.02) 5.11 8.03 (2.61) Global Systematic Equity Fund A Jul-00 (2.75) (11.35) (11.35) (10.43) 4.63 7.52 Global Systematic Equity Fund B Jul-00 (2.81) (11.57) (11.57) (11.31) 3.60 6.43 MSCI World (Net) Index (0.87) (8.92) (8.92) (4.53) 7.81 10.77 (1.13)

Global Value Equity Fund I Nov-89 (2.24) (10.56) (10.56) (7.93) 5.44 10.18 7.62 Global Value Equity Fund A Feb-97 (2.30) (10.70) (10.70) (8.59) 4.70 9.42 Global Value Equity Fund B Apr-97 (2.38) (10.94) (10.94) (9.51) 3.65 8.33 MSCI World (Net) Index (0.87) (8.92) (8.92) (4.53) 7.81 10.77 5.71

Indian Equity Fund I Nov-06 (10.99) (28.62) (28.62) 20.05 - - 11.20 Indian Equity Fund A Nov-06 (11.03) (28.75) (28.75) 19.16 - - Indian Equity Fund B Nov-06 (11.11) (28.92) (28.92) 17.98 - - MSCI India Blend Index (12.60) (26.88) (26.88) 28.92 - - 21.04

Indian Equity Fund IX Nov-06 ------Indian Equity Fund AX Nov-06 ------MSCI India Blend Index ------1.29

Japanese Equity Advantage Fund I May-06 2.44 (4.84) (4.84) (9.32) - - (7.57) Japanese Equity Advantage Fund A May-06 2.38 (5.00) (5.00) (9.91) - - Japanese Equity Advantage Fund B May-06 2.29 (5.23) (5.23) (10.82) - - TOPIX Index (3.22) (6.71) (6.71) (15.78) - - (9.25)

Japanese Equity Advantage Fund IX May-06 ------Japanese Equity Advantage Fund AX May-06 ------TOPIX Index ------0.84

Japanese Equity Advantage Fund AH Oct-06 2.29 (8.55) (8.55) (8.39) - - (2.20) Topix Euro Hedged Benchmark (Total Return) ------

Japanese Equity Growth Fund I Jul-00 0.22 (8.62) (8.62) (18.96) (3.03) 6.48 (6.14) Japanese Equity Growth Fund A Jul-00 0.16 (8.79) (8.79) (19.55) (3.73) 5.73 Japanese Equity Growth Fund B Jul-00 0.09 (9.00) (9.00) (20.29) (4.65) 4.79 TOPIX Index (3.22) (6.71) (6.71) (15.78) 2.91 9.15 (3.57)

Japanese Systematic Equity Fund I Jul-06 (1.32) (5.43) (5.43) (16.99) - - (8.59) Japanese Systematic Equity Fund A Jul-06 (1.36) (5.54) (5.54) (17.37) - - TOPIX Index (3.22) (6.71) (6.71) (15.78) - - (8.89)

Currency conversions are applied to reference currency NAVs to produce non-base currency performance.Currency conversions are made by Morningstar using the 4PM GMT WM Reuters Spot Rate.

Morgan Stanley SICAV Quarterly Report - March 2008 101 Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum EQUITY FUNDS & INDICES Launch date % % % % change change change

Japanese Systematic Equity Fund IX Jul-06 ------Japanese Systematic Equity Fund AX Jul-06 ------TOPIX Index ------0.86

Japanese Value Equity Fund I May-93 (1.63) (6.27) (6.27) (11.30) 6.24 9.89 (0.37) Japanese Value Equity Fund A Feb-97 (1.70) (6.44) (6.44) (11.94) 5.46 9.12 Japanese Value Equity Fund B Jun-97 (1.78) (6.67) (6.67) (12.83) 4.40 8.03 TOPIX Index (3.22) (6.71) (6.71) (15.78) 2.91 9.15 (2.14)

Latin American Equity Fund I Aug-94 (7.14) (4.49) (4.49) 23.14 41.87 41.25 13.25 Latin American Equity Fund A Feb-97 (7.20) (4.66) (4.66) 22.31 40.92 40.33 Latin American Equity Fund B Jun-97 (7.28) (4.90) (4.90) 21.09 39.51 38.93 MSCI EM Latin America Index (3.30) (1.28) (1.28) 38.00 43.58 43.64 11.77

US Equity Fund I Dec-01 (2.01) (9.60) (9.60) (5.30) 2.83 5.30 (2.68) US Equity Fund A Dec-01 (2.03) (9.72) (9.72) (7.03) 1.83 4.53 US Equity Fund B Dec-01 (2.13) (9.96) (9.96) (7.99) 0.80 3.49 S&P 500 Index (0.35) (9.30) (9.30) (6.33) 4.08 6.34 (0.91)

US Equity Growth Fund I Aug-92 (1.85) (11.88) (11.88) 1.94 8.46 6.30 8.86 US Equity Growth Fund A Feb-97 (1.90) (12.05) (12.05) 1.17 7.62 5.52 US Equity Growth Fund B Jun-97 (2.00) (12.26) (12.26) 0.14 6.55 4.47 Russell 1000 Growth Net 30% Withholding Tax TR Index (0.56) (10.12) (10.12) (2.40) 4.19 4.68 7.55

US Equity Growth Fund AH Oct-06 2.45 (5.28) (5.28) 17.29 - - 15.61 Russell 1000 Growth Index Euro Hedged 3.95 (2.22) (2.22) 13.80 - - 12.82

US Property Fund I Jan-96 5.96 5.40 5.40 (17.68) 11.34 14.61 11.34 US Property Fund A Feb-97 5.90 5.23 5.23 (18.26) 10.55 13.82 US Property Fund B Mar-97 5.81 4.95 4.95 (19.11) 9.44 12.69 FTSE NAREIT Equity REITs (Net) Index 6.15 1.20 1.20 (19.53) 8.37 11.37 8.39

US Small Cap Growth Fund I Aug-91 (1.16) (12.08) (12.08) (12.68) 2.77 9.39 8.32 US Small Cap Growth Fund A Feb-97 (1.22) (12.22) (12.22) (13.31) 2.05 8.64 US Small Cap Growth Fund B Jun-97 (1.32) (12.45) (12.45) (14.18) 1.02 7.54 Russell 2000 Growth Net 30% Withholding Tax TR Index (0.52) (12.73) (12.73) (10.29) 3.81 8.96 5.32

US Systematic Equity Fund I May-06 (3.43) (13.23) (13.23) (10.98) - - (1.56) US Systematic Equity Fund A May-06 (3.50) (13.35) (13.35) (11.39) - - S&P 500 (Net) Index (0.40) (9.45) (9.45) (6.87) - - 0.26

US Systematic Equity Fund IX May-06 (3.46) (13.48) (13.48) (11.46) - - (2.04) US Systematic Equity Fund AX May-06 (3.47) (13.38) (13.38) (11.47) - - S&P 500 (Net) Index (0.40) (9.45) (9.45) (6.87) - - 0.26

US Value Equity Fund I Jul-99 (3.78) (8.95) (8.95) (13.75) 0.95 6.20 (0.77) US Value Equity Fund A Jul-99 (3.78) (9.11) (9.11) (14.41) 0.18 5.42 US Value Equity Fund B Jul-99 (3.89) (9.33) (9.33) (15.26) (0.82) 4.36 S&P 500 Index (0.35) (9.30) (9.30) (6.33) 4.08 6.34 (0.76)

US Value Equity Fund AH Oct-06 0.57 (2.65) (2.65) (0.03) - - 2.82 S&P 500 Index Euro Hedged (0.24) (9.04) (9.04) (7.00) - - (4.75)

BOND FUNDS & INDICES

Emerging Markets Debt Fund I Apr-95 0.12 0.87 0.87 3.55 8.89 6.94 12.41 Emerging Markets Debt Fund A Feb-97 0.09 0.74 0.74 2.96 8.28 6.33 Emerging Markets Debt Fund B Jul-97 (0.01) 0.48 0.48 1.92 7.20 5.27 JPM Emerging Markets Bond Index Global 0.04 0.79 0.79 3.07 7.81 6.39 11.63

Currency conversions are applied to reference currency NAVs to produce non-base currency performance.Currency conversions are made by Morningstar using the 4PM GMT WM Reuters Spot Rate.

102 Morgan Stanley SICAV Quarterly Report - March 2008 Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum BOND FUNDS & INDICES Launch date % % % % change change change

Emerging Markets Debt Fund AH Oct-06 4.57 9.17 9.17 21.10 - - 18.35 JPM Emerging Markets Bond Index Global Euro Hedged 4.54 9.40 9.40 21.69 - - 18.95

Emerging Markets Domestic Debt Fund I Feb-07 (0.44) 2.16 2.16 10.08 - - 11.76 Emerging Markets Domestic Debt Fund A Feb-07 (0.47) 2.02 2.02 9.46 - - Emerging Markets Domestic Debt Fund B Feb-07 (0.59) 1.75 1.75 8.36 - - JPM GBI - EM Global Diversified (0.79) 2.40 2.40 14.95 - - 16.86

Emerging Markets Domestic Debt Fund IX Feb-07 (0.43) (2.34) (2.34) 4.15 - - 6.19 Emerging Markets Domestic Debt Fund AX Feb-07 (0.50) (2.05) (2.05) 4.19 - - JPM GBI - EM Global Diversified (0.79) 2.40 2.40 14.95 - - 16.86

Euro Bond Fund I Dec-98 3.37 10.11 10.11 19.81 6.85 6.02 4.92 Euro Bond Fund A Dec-98 3.41 9.98 9.98 19.47 6.42 5.59 Euro Bond Fund B Dec-98 3.30 9.68 9.68 18.20 5.37 4.52 Lehman Euro-Aggregate Index 3.66 10.55 10.55 21.00 7.43 6.63 5.67

Euro Corporate Bond Fund I Sep-01 2.25 6.71 6.71 13.49 5.42 6.05 7.73 Euro Corporate Bond Fund A Sep-01 2.18 6.59 6.59 12.98 4.97 5.61 Euro Corporate Bond Fund B Sep-01 2.10 6.31 6.31 11.86 3.92 4.56 Lehman Euro-Aggregate: Corporate Index 2.73 8.20 8.20 16.22 6.10 6.33 8.51

Euro Strategic Bond Fund I Feb-91 2.56 8.76 8.76 17.20 6.07 5.83 7.44 Euro Strategic Bond Fund A Feb-97 2.54 8.66 8.66 16.70 5.64 5.39 Euro Strategic Bond Fund B Sep-97 2.45 8.38 8.38 15.55 4.58 4.34 Lehman Euro-Aggregate Index 3.66 10.55 10.55 21.00 7.43 6.63 8.07

Euro Total Return Bond Fund I Mar-07 2.03 6.01 6.01 13.72 - - 13.72 Euro Total Return Bond Fund A Mar-07 1.98 5.92 5.92 13.30 - - Euro Total Return Bond Fund B Mar-07 1.91 5.68 5.68 12.17 - - One Month Euribor Index 4.83 9.69 9.69 22.53 - - 22.53

Euro Total Return Bond Fund IX Mar-07 2.03 3.30 3.30 9.74 - - 9.74 Euro Total Return Bond Fund AX Mar-07 1.98 3.38 3.38 9.65 - - One Month Euribor Index 4.83 9.69 9.69 22.53 - - 22.53

European Currencies High Yield Bond Fund I Dec-98 4.03 2.86 2.86 9.15 7.15 10.50 (1.42) European Currencies High Yield Bond Fund A Dec-98 4.10 2.79 2.79 8.72 6.72 10.02 European Currencies High Yield Bond Fund B Dec-98 3.96 2.50 2.50 7.59 5.63 8.92 ML European Currency Constrained High Yield Index 4.24 1.81 1.81 6.15 7.08 11.14 3.23

Global Bond Fund I Nov-89 2.49 8.24 8.24 15.18 4.21 2.76 5.58 Global Bond Fund A Feb-97 2.42 8.09 8.09 14.65 3.77 2.30 Global Bond Fund B Jun-97 2.38 7.87 7.87 13.53 2.74 1.28 Citigroup World Government Bond Index 3.31 9.83 9.83 18.70 5.47 3.26 6.41

Global Convertible Bond (Euro) Fund I Jul-02 1.77 2.83 2.83 14.47 8.81 8.33 9.79 Global Convertible Bond (Euro) Fund A Jul-02 1.73 2.72 2.72 13.96 8.30 7.82 Global Convertible Bond (Euro) Fund B Jul-02 1.64 2.46 2.46 12.84 7.24 6.74 Merrill Lynch G300 Global Convertible Index Euro Hedged 1.87 1.96 1.96 14.48 12.11 10.10 11.69

Global Convertible Bond (USD) Fund I Jul-02 (2.69) (5.14) (5.14) (2.90) 3.55 1.51 2.21 Global Convertible Bond (USD) Fund A Jul-02 (2.73) (5.25) (5.25) (3.36) 3.08 1.06 Global Convertible Bond (USD) Fund B Jul-02 (2.80) (5.46) (5.46) (4.31) 2.06 0.05 Merrill Lynch G300 Global Convertible Index USD Hedged (2.62) (6.35) (6.35) (4.02) 5.77 2.67 3.05

Short Maturity Euro Bond Fund I Aug-94 3.73 9.68 9.68 20.83 7.05 5.15 4.78 Short Maturity Euro Bond Fund A Feb-97 3.75 9.55 9.55 20.30 6.62 4.71 Short Maturity Euro Bond Fund B Oct-98 3.62 9.30 9.30 19.12 5.56 3.68 Lehman Euro-Aggregate: Treasury 1-3 Years Index 4.13 10.26 10.26 22.96 8.05 5.94 5.50

US Bond Fund I Aug-92 (5.82) (7.02) (7.02) (4.94) (0.20) (2.44) 5.02 US Bond Fund A Feb-97 (5.88) (7.17) (7.17) (5.37) (0.63) (2.85) US Bond Fund B Sep-97 (5.92) (7.37) (7.37) (6.29) (1.62) (3.81) Lehman Brothers Aggregate Index 0.43 2.33 2.33 6.25 3.72 (0.10) 6.45

Currency conversions are applied to reference currency NAVs to produce non-base currency performance.Currency conversions are made by Morningstar using the 4PM GMT WM Reuters Spot Rate.

Morgan Stanley SICAV Quarterly Report - March 2008 103 Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum BOND FUNDS & INDICES Launch date % % % % change change change

US Dollar Short Duration Fund I Jul-02 0.17 0.68 0.68 1.79 1.85 (2.02) (1.80) US Dollar Short Duration Fund A Jul-02 0.17 0.51 0.51 1.40 1.41 (2.44) US Dollar Short Duration Fund B Jul-02 (0.01) 0.25 0.25 0.29 0.39 (3.41) 3 Month US LIBOR Index 0.37 0.77 0.77 3.40 3.00 (1.17) (1.07)

LIQUIDITY FUNDS & INDICES

Euro Liquidity Fund I Jan-00 4.80 9.64 9.64 22.08 8.04 5.42 6.49 Euro Liquidity Fund A Jan-00 4.79 9.59 9.59 21.89 7.88 5.25 Euro Liquidity Fund B Jan-00 4.72 9.38 9.38 20.98 7.07 4.47 1 Month Euro LIBID Index 4.84 9.68 9.68 22.45 8.40 5.72 6.71

US Dollar Liquidity Fund I Jun-99 0.36 1.10 1.10 3.37 2.64 (1.58) 0.63 US Dollar Liquidity Fund A Jul-99 0.33 1.02 1.02 3.00 2.25 (1.97) US Dollar Liquidity Fund B Sep-99 0.27 0.85 0.85 2.78 2.17 (2.01) Citi 3 Month US T-bill Index 0.29 0.87 0.87 2.95 2.54 (1.54) 0.70

US Dollar Liquidity Fund IX Mar-98 0.36 1.10 1.10 3.33 2.62 (1.60) 1.72 US Dollar Liquidity Fund AX May-98 0.33 1.02 1.02 2.96 2.22 (1.98) US Dollar Liquidity Fund BX Dec-98 0.27 0.85 0.85 2.74 2.15 (2.02) Citi 3 Month US T-bill Index 0.29 0.87 0.87 2.95 2.54 (1.54) 1.78

ASSET ALLOCATION FUNDS & INDICES

Global Diversified (Euro) Fund I Dec-01 (0.53) (0.96) (0.96) 7.28 6.96 8.82 6.79 Global Diversified (Euro) Fund A Dec-01 (0.57) (1.11) (1.11) 6.64 6.35 8.21 Global Diversified (Euro) Fund B May-02 (0.64) (1.37) (1.37) 5.59 5.29 7.13 50% MSCI World Index / 50% JPM Global Government Bond Index 1.18 0.17 0.17 6.68 6.81 7.09 3.83

Global Diversified (USD) Fund I Dec-01 (3.51) (7.11) (7.11) (5.43) 2.56 4.23 0.59 Global Diversified (USD) Fund A Dec-01 (3.55) (7.25) (7.25) (5.96) 1.96 3.62 Global Diversified (USD) Fund B Jul-02 (3.64) (7.46) (7.46) (6.88) 0.98 2.62 50% MSCI World Index / 50% JPM Global Government Bond Index 1.18 0.17 0.17 6.68 6.81 7.09 3.83

ALTERNATIVE FUNDS & INDICES

FX Alpha Plus RC 200 (Euro) Fund I Feb-07 4.51 8.38 8.38 20.79 - - 20.42 FX Alpha Plus RC 200 (Euro) Fund A Feb-07 4.51 8.29 8.29 20.37 - - FX Alpha Plus RC 200 (Euro) Fund B Feb-07 4.39 8.04 8.04 19.16 - - Euro Overnight Index Average (EONIA) 4.82 9.64 9.64 22.33 - - 21.56

FX Alpha Plus RC 200 (Euro) Fund IX Feb-07 ------FX Alpha Plus RC 200 (Euro) Fund AX Feb-07 ------Euro Overnight Index Average (EONIA) ------1.24

FX Alpha Plus RC 200 (US Dollar) Fund I Feb-07 (0.14) (0.34) (0.34) 2.17 - - 2.64 FX Alpha Plus RC 200 (US Dollar) Fund A Feb-07 0.01 (0.23) (0.23) 2.06 - - FX Alpha Plus RC 200 (US Dollar) Fund B Feb-07 ------Overnight USD LIBOR Index 0.35 1.03 1.03 3.54 - - 3.61

FX Alpha Plus RC 200 (US Dollar) Fund IX Feb-07 ------FX Alpha Plus RC 200 (US Dollar) Fund AX Feb-07 - (3.10) (3.10) (2.02) - - Overnight USD LIBOR Index ------1.04

Currency conversions are applied to reference currency NAVs to produce non-base currency performance.Currency conversions are made by Morningstar using the 4PM GMT WM Reuters Spot Rate.

104 Morgan Stanley SICAV Quarterly Report - March 2008 Since 3 year 5 year inception Strategy 1 month 3 month YTD 1 year % per annum % per annum % per annum ALTERNATIVE FUNDS & INDICES Launch date % % % % change change change

FX Alpha Plus RC 400 (Euro) Fund I Feb-07 4.27 7.30 7.30 20.13 - - 20.26 FX Alpha Plus RC 400 (Euro) Fund A Feb-07 4.22 7.13 7.13 19.52 - - FX Alpha Plus RC 400 (Euro) Fund B Feb-07 4.14 6.86 6.86 18.31 - - Euro Overnight Index Average (EONIA) 4.82 9.64 9.64 22.33 - - 21.56

FX Alpha Plus RC 400 (Euro) Fund IX Feb-07 ------FX Alpha Plus RC 400 (Euro) Fund AX Feb-07 - 5.02 5.02 16.68 - - Euro Overnight Index Average (EONIA) ------1.24

FX Alpha Plus RC 400 (US Dollar) Fund I Feb-07 (0.11) (1.14) (1.14) 1.38 - - 2.17 FX Alpha Plus RC 400 (US Dollar) Fund A Feb-07 (0.15) (1.22) (1.22) 0.95 - - FX Alpha Plus RC 400 (US Dollar) Fund B Feb-07 ------Overnight USD LIBOR Index 0.35 1.03 1.03 3.54 - - 3.61

FX Alpha Plus RC 400 (US Dollar) Fund IX Feb-07 (0.11) (1.73) (1.73) (0.22) - - 0.68 FX Alpha Plus RC 400 (US Dollar) Fund AX Feb-07 - (3.40) (3.40) (2.14) - - Overnight USD LIBOR Index 0.35 1.03 1.03 3.54 - - 3.61

FX Alpha Plus RC 800 (Euro) Fund I Feb-07 3.78 5.14 5.14 18.86 - - 19.74 FX Alpha Plus RC 800 (Euro) Fund A Feb-07 3.69 5.00 5.00 18.31 - - FX Alpha Plus RC 800 (Euro) Fund B Feb-07 3.60 4.73 4.73 17.10 - - Euro Overnight Index Average (EONIA) 4.82 9.64 9.64 22.33 - - 21.56

FX Alpha Plus RC 800 (Euro) Fund IX Feb-07 3.75 1.12 1.12 14.36 - - 15.55 FX Alpha Plus RC 800 (Euro) Fund AX Feb-07 3.69 4.31 4.31 17.56 - - Euro Overnight Index Average (EONIA) 4.82 9.64 9.64 22.33 - - 21.56

FX Alpha Plus RC 800 (Sterling) Fund I Feb-07 (0.61) (2.82) (2.82) 3.15 - - 4.55 FX Alpha Plus RC 800 (Sterling) Fund A Feb-07 (0.62) (2.96) (2.96) - - - FX Alpha Plus RC 800 (Sterling) Fund B Feb-07 ------Overnight GBP LIBOR Index 0.48 1.39 1.39 5.92 - - 5.88

FX Alpha Plus RC 800 (Sterling) Fund IX Feb-07 (0.59) (4.69) (4.69) 0.16 - - 1.74 FX Alpha Plus RC 800 (Sterling) Fund AX Feb-07 ------Overnight GBP LIBOR Index 0.48 1.39 1.39 5.92 - - 5.88

FX Alpha Plus RC 800 (US Dollar) Fund I Feb-07 (0.72) (3.16) (3.16) 1.10 - - 2.62 FX Alpha Plus RC 800 (US Dollar) Fund A Feb-07 (0.76) (3.30) (3.30) 0.24 - - FX Alpha Plus RC 800 (US Dollar) Fund B Feb-07 ------Overnight USD LIBOR Index 0.35 1.03 1.03 3.54 - - 3.61

FX Alpha Plus RC 800 (US Dollar) Fund IX Feb-07 ------FX Alpha Plus RC 800 (US Dollar) Fund AX Feb-07 - (6.03) (6.03) (3.07) - - Overnight USD LIBOR Index ------1.04

Morgan Stanley SICAV Quarterly Report - March 2008 105 Calendar year returns

Reference 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 EQUITY FUNDS & INDICES currency % change % change % change % change % change % change % change % change % change % change

American Franchise Fund I USD (3.34) 16.58 ------American Franchise Fund A USD (4.09) 15.87 ------American Franchise Fund B USD (5.03) 14.73 ------S&P 500 Index USD 5.49 15.79 ------

Asian Equity Fund I USD 42.73 32.64 19.43 16.67 49.43 (11.13) (2.44) (37.33) 82.26 (8.40) Asian Equity Fund A USD 41.71 31.64 18.60 15.79 48.67 (11.65) (2.96) (37.69) 81.51 (9.00) Asian Equity Fund B USD 40.29 30.34 17.42 14.67 47.18 (12.56) (3.91) (38.31) 79.24 (9.81) MSCI AC Far East Free ex Japan Index USD 36.51 31.72 21.33 17.20 44.51 (9.37) (2.24) (36.80) 62.11 (4.82)

Asian Property Fund I USD 16.66 30.53 22.51 33.05 41.55 (13.32) (14.20) 1.92 22.22 (11.00) Asian Property Fund A USD 15.84 29.55 21.69 31.97 40.84 (13.83) (14.74) 1.17 21.61 (11.45) Asian Property Fund B USD 14.71 28.32 20.42 31.23 40.00 (13.48) (15.19) 0.26 - - GPR General Quoted Asia Net Index USD 17.15 34.74 19.45 35.86 46.38 (7.14) (13.87) (0.47) 18.73 (9.96)

Emerging Europe, Middle East and North Africa Equity Fund I EUR 30.08 29.60 64.59 26.83 47.78 (14.26) (4.00) - - - Emerging Europe, Middle East and North Africa Equity Fund A EUR 29.33 28.90 63.65 26.05 46.95 (14.73) (4.57) - - - Emerging Europe, Middle East and North Africa Equity Fund B EUR 28.14 27.91 62.59 25.44 46.05 (14.70) (4.88) - - - MSCI Emerging Europe and Middle East Index EUR 18.34 12.96 66.64 21.57 37.92 (22.00) (11.76) - - -

Emerging Markets Equity Fund I USD 41.56 38.15 33.47 23.45 54.86 (7.03) (4.11) (37.30) 92.10 (27.45) Emerging Markets Equity Fund A USD 40.77 37.68 32.71 22.74 54.01 (7.51) (4.66) (37.67) 90.84 (27.82) Emerging Markets Equity Fund B USD 39.39 36.12 31.57 21.71 53.08 (8.01) (5.27) (38.26) 88.89 (28.42) MSCI Emerging Markets Free (Net) Index USD 39.38 32.16 33.99 25.56 55.82 (6.17) (2.62) (30.61) 66.41 (25.34)

European Equity Fund I EUR 4.77 16.21 21.06 10.69 8.28 (22.57) (9.16) 13.68 26.83 2.81 European Equity Fund A EUR 4.16 15.43 20.22 9.88 7.65 (23.01) (9.67) 13.01 26.02 2.24 European Equity Fund B EUR 3.12 14.28 19.01 8.82 6.55 (23.77) (10.56) 11.89 24.81 1.17 MSCI Europe (Net) Index EUR 2.69 19.61 26.09 12.18 15.26 (30.74) (15.54) (2.21) 35.82 20.46

European Equity Opportunities Fund I EUR 4.74 ------European Equity Opportunities Fund A EUR 3.99 ------European Equity Opportunities Fund B EUR 2.95 ------MSCI Europe (Net) Index EUR 2.69 ------

European Property Fund I EUR (34.33) 53.05 25.39 35.93 18.20 4.67 (1.88) 20.98 11.78 (3.15) European Property Fund A EUR (34.80) 52.02 24.43 34.96 17.48 4.16 (2.52) 20.35 11.04 (3.65) European Property Fund B EUR (35.45) 50.53 23.18 33.60 16.37 3.08 (3.52) 19.22 10.06 - GPR General Quoted Europe Net Index EUR (29.53) 50.29 25.51 38.44 19.56 2.79 (0.27) 15.56 19.08 (6.68)

European Small Cap Value Fund I EUR (3.19) 25.38 29.27 25.93 21.84 (19.56) - - - - European Small Cap Value Fund A EUR (3.90) 24.50 28.34 25.05 21.16 (20.02) - - - - European Small Cap Value Fund B EUR (4.85) 23.26 27.08 23.79 20.02 (20.93) - - - - MSCI European Small Cap Index EUR (7.51) 29.92 37.05 23.16 34.28 (25.71) - - - -

European Systematic Equity Fund I EUR (0.70) 19.01 ------European Systematic Equity Fund A EUR (1.17) 18.55 ------MSCI Europe (Net) Index EUR 2.69 19.61 ------

Eurozone Equity Opportunities Fund I EUR 5.18 17.25 24.70 4.60 7.13 (28.95) (13.74) - - - Eurozone Equity Opportunities Fund A EUR 4.53 16.58 23.99 4.05 6.56 (29.48) (14.21) - - - Eurozone Equity Opportunities Fund B EUR 3.45 15.38 23.00 2.85 5.30 (30.04) (15.02) - - - MSCI EMU (Net) Index EUR 5.95 19.87 26.09 12.18 15.26 (30.74) (15.54) - - -

Global Brands Fund I USD 9.58 20.87 11.59 13.43 27.34 7.46 0.81 - - - Global Brands Fund A USD 8.79 20.01 10.77 12.65 26.60 6.85 0.26 - - - Global Brands Fund B USD 7.71 18.81 9.66 11.60 25.32 5.86 (0.74) - - - MSCI World (Net) Index USD 9.03 20.07 9.49 14.72 33.11 (19.89) (16.82) - - -

Global Equity Growth Fund I USD 18.05 ------Global Equity Growth Fund A USD 17.29 ------Global Equity Growth Fund B USD 16.09 ------MSCI World (Net) Index USD 9.03 ------

Global Property Fund I USD (12.05) ------Global Property Fund A USD (12.69) ------Global Property Fund B USD (13.52) ------FTSE EPRA/NAREIT Global Real Estate Index (Net, equal weighted) USD (9.73) ------

106 Morgan Stanley SICAV Quarterly Report - March 2008 Calendar year returns (continued)

Reference 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 EQUITY FUNDS & INDICES currency % change % change % change % change % change % change % change % change % change % change

Global Small Cap Value Fund I USD (1.78) 22.92 10.11 25.02 45.47 (8.98) (7.53) (1.38) 28.49 - Global Small Cap Value Fund A USD (2.50) 22.05 9.30 24.20 44.61 (9.46) (8.06) (1.98) 27.77 - Global Small Cap Value Fund B USD (3.47) 20.85 8.22 22.93 43.61 (10.18) (8.65) (2.90) 26.52 - MSCI World Small Cap Index USD 0.77 17.19 15.73 24.30 57.80 (16.02) (0.66) (3.12) 25.31 -

Global Systematic Equity Fund I USD 5.71 19.55 6.14 12.21 30.95 (22.57) (14.00) - - - Global Systematic Equity Fund A USD 5.26 18.93 5.71 11.65 30.11 (22.99) (14.49) - - - Global Systematic Equity Fund B USD 4.23 17.78 4.60 10.48 28.90 (23.80) (15.28) - - - MSCI World (Net) Index USD 9.03 20.07 9.49 14.72 33.11 (19.89) (16.82) - - -

Global Value Equity Fund I USD 6.94 21.32 5.50 14.13 28.92 (16.36) (7.96) 12.02 3.73 11.55 Global Value Equity Fund A USD 6.14 20.47 4.73 13.32 28.18 (16.82) (8.48) 11.35 3.15 10.92 Global Value Equity Fund B USD 5.09 19.29 3.68 12.18 26.92 (17.66) (9.41) 10.27 2.13 9.80 MSCI World (Net) Index USD 9.03 20.07 9.49 14.72 33.11 (19.89) (16.82) (13.18) 24.93 24.34

Indian Equity Fund I USD 65.71 ------Indian Equity Fund A USD 64.50 ------Indian Equity Fund B USD 62.78 ------MSCI India Blend Index USD 73.13 ------

Japanese Equity Advantage Fund I JPY (8.29) ------Japanese Equity Advantage Fund A JPY (8.88) ------Japanese Equity Advantage Fund B JPY (9.80) ------TOPIX Index JPY (11.10) ------

Japanese Equity Growth Fund I JPY (16.49) (7.81) 49.83 14.65 25.02 (23.30) (14.26) - - - Japanese Equity Growth Fund A JPY (17.10) (8.47) 48.76 13.82 24.29 (23.73) (14.75) - - - Japanese Equity Growth Fund B JPY (17.86) (9.38) 47.32 12.82 23.48 (24.17) (15.23) - - - TOPIX Index JPY (11.10) 3.02 45.23 11.34 25.19 (17.50) (18.91) - - -

Japanese Systematic Equity Fund I JPY (11.13) ------Japanese Systematic Equity Fund A JPY (11.53) ------TOPIX Index JPY (11.10) ------

Japanese Value Equity Fund I JPY (5.35) 12.35 34.88 11.27 19.96 (18.23) (19.37) (14.40) 47.71 (3.78) Japanese Value Equity Fund A JPY (6.03) 11.51 33.91 10.48 19.28 (18.70) (19.82) (14.88) 46.86 (4.33) Japanese Value Equity Fund B JPY (6.97) 10.41 32.57 9.38 18.09 (19.53) (20.63) (15.75) 45.47 (5.28) TOPIX Index JPY (11.10) 3.02 45.23 11.34 25.19 (17.50) (18.91) (24.96) 59.70 (6.57)

Latin American Equity Fund I USD 38.20 50.99 51.64 45.69 59.78 (21.82) (1.55) (15.12) 66.53 (34.92) Latin American Equity Fund A USD 37.29 49.97 50.62 44.77 58.88 (22.29) (2.10) (15.56) 65.39 (35.23) Latin American Equity Fund B USD 35.90 48.53 49.08 43.34 57.30 (23.02) (3.08) (16.45) 63.89 (36.14) MSCI EM Latin America Index USD 50.41 43.13 50.01 39.45 73.50 (22.50) (0.64) (16.57) 58.89 (35.11)

US Equity Fund I USD 6.68 10.84 6.24 7.47 27.13 (25.63) - - - - US Equity Fund A USD 4.73 10.21 5.67 7.07 26.69 (26.13) - - - - US Equity Fund B USD 3.67 9.08 4.65 6.03 25.46 (26.86) - - - - S&P 500 Index USD 5.49 15.79 4.92 10.88 28.68 (22.10) - - - -

US Equity Growth Fund I USD 20.86 3.48 14.77 7.47 24.08 (28.26) (15.72) (12.96) 33.07 17.41 US Equity Growth Fund A USD 19.94 2.66 13.89 6.68 23.37 (28.68) (16.23) (13.41) 32.31 16.71 US Equity Growth Fund B USD 18.74 1.64 12.74 5.63 22.15 (29.38) (17.06) (14.32) 30.89 15.76 Russell 1000 Growth Net 30% Withholding Tax TR Index USD 11.43 8.68 4.92 5.98 29.32 (28.09) (20.57) (22.53) 32.89 38.34

US Property Fund I USD (17.99) 36.79 15.72 34.40 36.56 (2.60) 9.80 27.63 (3.00) (12.18) US Property Fund A USD (18.60) 35.82 14.91 33.41 35.77 (3.16) 9.27 26.86 (3.04) (12.77) US Property Fund B USD (19.42) 34.48 13.76 32.09 34.41 (4.11) 8.14 25.86 (4.97) (12.87) FTSE NAREIT Equity REITs (Net) Index USD (16.71) 33.37 10.49 29.37 34.48 1.69 11.45 23.33 (6.96) (18.98)

US Small Cap Growth Fund I USD 1.77 11.39 12.09 18.13 43.90 (22.78) (12.30) (5.20) 71.71 26.97 US Small Cap Growth Fund A USD 1.02 10.59 11.29 17.28 43.10 (23.21) (12.81) (5.76) 70.75 26.33 US Small Cap Growth Fund B USD 0.02 9.49 10.20 16.08 41.64 (23.97) (13.69) (6.67) 69.05 25.02 Russell 2000 Growth Net 30% Withholding Tax TR Index USD 6.88 13.17 4.00 14.16 48.25 (30.39) (9.33) (22.50) 42.92 1.10

US Systematic Equity Fund I USD 5.79 ------US Systematic Equity Fund A USD 5.34 ------S&P 500 (Net) Index USD 4.90 ------

Morgan Stanley SICAV Quarterly Report - March 2008 107 Calendar year returns (continued)

Reference 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 EQUITY FUNDS & INDICES currency % change % change % change % change % change % change % change % change % change % change

US Value Equity Fund I USD (3.25) 16.84 3.60 17.20 28.93 (18.93) (5.14) 3.87 - - US Value Equity Fund A USD (4.01) 16.00 2.75 16.34 28.15 (19.34) (5.71) 3.34 - - US Value Equity Fund B USD (4.97) 14.80 1.81 15.14 26.90 (20.19) (6.62) 2.32 - - S&P 500 Index USD 5.49 15.79 4.92 10.88 28.68 (22.10) (11.89) (9.10) - -

BOND FUNDS & INDICES

Emerging Markets Debt Fund I USD 6.70 10.91 12.30 9.54 28.08 10.71 10.26 12.31 28.15 (24.43) Emerging Markets Debt Fund A USD 6.10 10.27 11.66 8.91 27.35 10.06 9.64 11.65 27.43 (25.01) Emerging Markets Debt Fund B USD 5.04 9.20 10.58 7.79 26.08 8.80 8.48 10.56 26.19 (25.64) JPM Emerging Markets Bond Index Global USD 6.28 9.88 10.73 11.73 25.66 13.12 1.36 14.41 24.18 (11.55)

Euro Bond Fund I EUR 0.91 (0.63) 4.34 6.74 4.19 8.04 5.50 6.08 (3.31) - Euro Bond Fund A EUR 0.57 (1.03) 3.90 6.21 3.76 7.75 4.98 5.65 (3.83) - Euro Bond Fund B EUR (0.41) (2.03) 2.82 5.27 2.71 6.24 3.99 4.43 (4.48) - Lehman Euro-Aggregate Index EUR 1.31 (0.13) 5.09 7.71 4.42 9.41 6.36 6.99 (2.81) -

Euro Corporate Bond Fund I EUR (0.84) 1.07 2.85 7.32 8.68 5.20 - - - - Euro Corporate Bond Fund A EUR (1.24) 0.61 2.43 6.88 8.24 4.69 - - - - Euro Corporate Bond Fund B EUR (2.22) (0.40) 1.42 5.81 7.15 3.67 - - - - Lehman Euro-Aggregate: Corporate Index EUR (0.16) 0.46 4.02 7.90 7.19 8.27 - - - -

Euro Strategic Bond Fund I EUR (0.13) (0.53) 4.24 6.85 5.60 6.51 5.46 5.73 (2.65) 11.15 Euro Strategic Bond Fund A EUR (0.55) (0.96) 3.85 6.41 5.15 6.05 5.02 5.29 (3.04) 10.64 Euro Strategic Bond Fund B EUR (1.52) (1.98) 2.84 5.33 4.12 4.99 4.00 4.21 (4.00) 9.57 Lehman Euro-Aggregate Index EUR 1.31 (0.13) 5.09 7.71 4.42 9.41 6.36 6.99 (2.81) 11.45

European Currencies High Yield Bond Fund I EUR 0.00 7.14 4.07 12.10 27.27 (22.43) (18.77) (21.04) 3.44 - European Currencies High Yield Bond Fund A EUR (0.49) 6.68 3.65 11.60 26.84 (22.81) (19.03) (21.37) 2.87 - European Currencies High Yield Bond Fund B EUR (1.44) 5.61 2.53 10.44 25.71 (23.58) (19.88) (22.13) 1.91 - ML European Currency Constrained High Yield Index EUR (2.08) 8.64 6.17 15.37 28.27 (11.67) (6.83) (14.57) 7.75 -

Global Bond Fund I USD 9.15 5.47 (7.25) 9.63 17.56 17.43 (0.40) 0.76 (6.89) 13.32 Global Bond Fund A USD 8.68 5.01 (7.60) 9.16 16.92 16.96 (0.82) 0.41 (7.28) 12.84 Global Bond Fund B USD 7.58 3.96 (8.51) 8.07 15.79 15.80 (1.86) (0.63) (8.23) 11.74 Citigroup World Government Bond Index USD 10.94 6.09 (6.87) 10.48 14.51 19.37 (0.79) 2.34 (5.08) 15.31

Global Convertible Bond (Euro) Fund I EUR 6.49 6.47 2.76 5.41 11.01 - - - - - Global Convertible Bond (Euro) Fund A EUR 5.98 5.96 2.30 4.94 10.47 - - - - - Global Convertible Bond (Euro) Fund B EUR 4.94 4.94 1.25 3.90 9.38 - - - - - Merrill Lynch G300 Global Convertible Index Euro Hedged EUR 6.54 11.78 5.85 5.22 13.91 - - - - -

Global Convertible Bond (USD) Fund I USD 8.01 9.70 3.20 4.80 12.43 - - - - - Global Convertible Bond (USD) Fund A USD 7.50 9.18 2.76 4.30 11.97 - - - - - Global Convertible Bond (USD) Fund B USD 6.44 8.10 1.75 3.24 10.87 - - - - - Merrill Lynch G300 Global Convertible Index USD Hedged USD 7.17 13.97 6.14 5.22 13.91 - - - - -

Short Maturity Euro Bond Fund I EUR 2.43 1.26 1.39 2.86 2.95 5.17 4.67 3.79 1.06 6.82 Short Maturity Euro Bond Fund A EUR 2.00 0.83 1.02 2.40 2.52 4.76 4.27 3.42 0.43 6.31 Short Maturity Euro Bond Fund B EUR 0.96 (0.13) 0.00 1.42 1.45 3.68 3.31 2.45 (0.50) - Lehman Euro-Aggregate: Treasury 1-3 Years Index EUR 3.78 1.81 2.13 3.33 3.29 5.90 5.96 4.74 1.79 7.76

US Bond Fund I USD 5.32 3.14 3.39 4.14 3.34 8.24 8.98 9.86 (1.73) 7.26 US Bond Fund A USD 4.93 2.68 3.01 3.64 2.94 7.78 8.44 9.44 (2.21) 6.86 US Bond Fund B USD 3.85 1.64 1.99 2.66 1.86 6.74 7.43 8.26 (3.12) 5.81 Lehman Brothers Aggregate Index USD 6.97 4.33 2.43 4.34 4.10 10.25 8.44 11.63 (0.82) 8.69

US Dollar Short Duration Fund I USD 4.01 4.67 2.04 1.08 1.19 - - - - - US Dollar Short Duration Fund A USD 3.62 4.06 1.67 0.69 0.70 - - - - - US Dollar Short Duration Fund B USD 2.52 3.10 0.70 (0.30) (0.20) - - - - - 3 Month US LIBOR Index USD 5.54 5.30 3.47 1.53 1.23 - - - - -

LIQUIDITY FUNDS & INDICES

Euro Liquidity Fund I EUR 3.72 2.52 1.74 1.74 2.00 2.98 4.09 - - - Euro Liquidity Fund A EUR 3.57 2.36 1.57 1.59 1.84 2.82 3.88 - - - Euro Liquidity Fund B EUR 2.79 1.59 0.82 0.83 1.08 2.06 3.12 - - - 1 Month Euro LIBID Index EUR 4.09 2.90 2.04 1.97 2.20 3.20 4.17 - - -

108 Morgan Stanley SICAV Quarterly Report - March 2008 Calendar year returns (continued)

Reference 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 LIQUIDITY FUNDS & INDICES currency % change % change % change % change % change % change % change % change % change % change

US Dollar Liquidity Fund I USD 5.07 4.76 2.89 0.99 0.78 1.43 3.81 6.05 - - US Dollar Liquidity Fund A USD 4.66 4.35 2.49 0.59 0.38 1.02 3.39 5.69 - - US Dollar Liquidity Fund B USD 4.61 4.35 2.48 0.59 0.38 0.58 2.64 5.01 - - Citi 3 Month US T-bill Index USD 4.89 4.81 3.00 1.23 1.08 1.70 4.08 5.96 - -

ASSET ALLOCATION FUNDS & INDICES

Global Diversified (Euro) Fund I EUR (0.47) 4.27 14.29 6.85 7.87 (7.22) - - - - Global Diversified (Euro) Fund A EUR (1.04) 3.66 13.65 6.28 7.26 (7.74) - - - - Global Diversified (Euro) Fund B EUR (2.00) 2.61 12.52 5.23 6.22 - - - - - 50% MSCI World Index / 50% JPM Global Government Bond Index EUR (0.69) 0.96 16.74 4.34 2.97 (16.36) - - - -

Global Diversified (USD) Fund I USD 3.49 9.72 7.24 8.77 21.28 (4.88) - - - - Global Diversified (USD) Fund A USD 2.90 9.02 6.64 8.13 20.63 (5.36) - - - - Global Diversified (USD) Fund B USD 1.89 8.02 5.58 7.04 19.41 - - - - - 50% MSCI World Index / 50% JPM Global Government Bond Index USD 10.11 12.87 1.31 12.44 23.76 (1.42) - - - -

Morgan Stanley SICAV Quarterly Report - March 2008 109 Fund manager biographies

DALE R. ALBRIGHT, CFA Executive Director Dale is a senior portfolio manager of various Morgan Stanley taxable money market funds. He joined Morgan Stanley in 1990 and has 21 years of investment experience. Prior to joining the firm, Dale was a fixed income research analyst at Paine Webber, Inc. and an assistant financial analyst at Prudential Insurance Company. He received a BA in economics and business from Lafayette College and an MBA in finance from Columbia Business School. Dale holds the Chartered Financial Analyst designation and is a member of the New York Society of Security Analysts. Fund: US Dollar Liquidity.

MICHAEL ALLISON, CFA Executive Director Michael is a research analyst for the Global and American Franchise strategies. He joined Morgan Stanley in 2000 and has 11 years of investment experience. Prior to joining the firm, Michael worked at NatWest Markets and Unilever. Michael received a BComm and a postgraduate diploma in management, both from the University of Natal. He holds the Chartered Financial Analyst designation and is a member of both the Chartered Institute of Management Accountants and the CFA Institute. Funds: American Franchise, Global Brands.

DEVIN ARMSTRONG, CFA Vice President Devin is a portfolio manager for the US Value Equity strategy. He joined Morgan Stanley in 2004 and has nine years of investment experience. Prior to his current role, Devin was a member of the US Research team. Previously, he was a research associate at William Blair & Company. Before that, Devin was a senior analyst at Ibbotson Associates. He received a BS in psychology and finance from the University of Illinois and an MBA in finance from Columbia University. He holds the Chartered Financial Analyst designation. Fund: US Value Equity.

DEEPAK BAGHLA Vice President Deepak is a portfolio manager of the Commodities Alpha Plus strategies. He joined Morgan Stanley in 2005 and has seven years of industry experience. Prior to his current role, Deepak worked with the firm's fixed income quantitative trading strategy team. Prior to joining the firm, Deepak worked on application development in technology start-ups. Deepak received a BTech from the Indian Institute of Technology, New Delhi, and an MSc in computational finance from the National Technological University, Singapore and Carnegie Mellon University, Pittsburgh. Fund: Commodities Alpha Plus.

BOB BAKER, CFA Managing Director Bob is a portfolio manager for the US Value Equity strategy. He joined Van Kampen in 1991 and has 29 years of investment experience. Prior to joining the firm, Bob was a portfolio manager at Variable Annuity Life Insurance Company. Previously, he was a fixed income credit analyst at Tenneco Financial Services. He received a BA from Westminster College and an MBA from the University of North Texas. Bob holds the Chartered Financial Analyst designation and is a member of both the CFA Institute and the Houston Society of Financial Analysts. Fund: US Value Equity.

DAVIDE BASILE Executive Director Davide is a member of the Fixed Income team. He joined Morgan Stanley in 2001 and has six years of investment experience. Prior to joining the firm, Davide was briefly with BCM & Partners, a start-up venture. Before that, he was a member of Morgan Stanley’s Client Strategy group. Davide received a BEng in materials science engineering from Imperial College, London. Funds: Global Convertible Bond (Euro), Global Convertible Bond (USD).

110 Morgan Stanley SICAV Quarterly Report - March 2008 ERIC BAURMEISTER, CFA Managing Director Eric is a member of the Fixed Income team. He joined Morgan Stanley in 1997 and has 14 years of investment experience. Prior to joining the firm, Eric was an associate at Citicorp and a portfolio manager at MIMCO. He received a BA in economics and government from Cornell University and holds the Chartered Financial Analyst designation. Eric is a member of the New York Society of Security Analysts and the JPMorgan EMBI Index Advisory Committee. Funds: Emerging Markets Debt, Emerging Markets Domestic Debt.

SANDIP BHAGAT, CFA Managing Director Sandip is co-head of the Global Tactical Asset Allocation team and head of the Systematic Strategies group. He joined Morgan Stanley in 2004 and has 22 years of investment experience. Prior to joining the firm, Sandip was a managing director, president and CIO of Citigroup Asset Management’s Travelers Investment Management division. Sandip received a BS in chemical engineering from the University of Bombay and an MS in chemical engineering and MBA in finance from the University of Connecticut. He holds the Chartered Financial Analyst designation. Funds: European Systematic Equity, Global Systematic Equity, Japanese Systematic Equity, US Systematic Equity.

TED BIGMAN Managing Director Ted is head of Global Real Estate. He joined Morgan Stanley in 1995 and has 21 years of investment experience. Prior to joining the firm, he was a director at Credit Suisse First Boston, establishing and managing the REIT effort. Previously, he had extensive real estate experience in a wide variety of transactions. Ted received a BA in economics from Brandeis University and an MBA from Harvard Business School. He is a member of the National Association of Real Estate Investment Trusts. Funds: Global Property, US Property.

RICCARDO BINDI, CFA Executive Director Riccardo is a portfolio manager for the European Equity strategies. He joined Morgan Stanley in 2006 and has 16 years of investment experience. Prior to joining the firm, Riccardo was a European equity portfolio manager at Société Générale Asset Management. Prior to that, Riccardo was at Lombard Odier Darier Hentsch where he was responsible for European small/mid cap equities. Riccardo received a BSc in economics from the University of Bath and an MSc in economics from the University of London. He also holds the Chartered Financial Analyst designation and is a member of UKSIP and the CFA Institute. Funds: European Equity, European Equity Opportunities, Eurozone Equity Opportunities.

CHRIS CALLAN Executive Director Chris is a portfolio manager of the FX Alpha Plus and Commodities Alpha Plus strategies. He joined Morgan Stanley in 2004 and has nine years of investment industry experience. Prior to this, he worked at Nikko Europe, Sanwa International and Bear Stearns International. Chris received a degree in computer science from the University of Wales and an MSc in mathematical trading and finance from CASS Business School, London. Funds: Commodities Alpha Plus, FX Alpha Plus RC 200 (Euro), FX Alpha Plus RC 200 (Sterling), FX Alpha Plus RC 200 (US Dollar), FX Alpha Plus RC 400 (Euro), FX Alpha Plus RC 400 (Sterling), FX Alpha Plus RC 400 (US Dollar), FX Alpha Plus RC 800 (Euro), FX Alpha Plus RC 800 (Sterling), FX Alpha Plus RC 800 (US Dollar). ERIC CARLSON Executive Director Eric is a portfolio manager on the Emerging Markets Equity team, focusing on Europe, the Middle East and Africa, and telecommunications. He joined Morgan Stanley in 1997 and has 13 years of investment experience. Prior to joining the firm, he worked as a telecommunications analyst at Neuberger & Berman. Eric received a BA in social studies from Harvard University and a JD from Harvard Law School. Funds: Emerging Europe, Middle East and North Africa Equity.

Morgan Stanley SICAV Quarterly Report - March 2008 111 SAM CHAINANI, CFA Managing Director Sam is a senior investor for the US Equity Growth team. He joined Morgan Stanley in 1996 and has 14 years of investment experience. Sam received a BS in management with a concentration in finance from Binghamton University. He holds the Chartered Financial Analyst designation. Funds: Global Equity Growth, US Equity Growth, US Small Cap Growth.

NEIL CHAKRABORTY Vice President Neil is a quantitative specialist in the Global Structured Products team. He joined Morgan Stanley in 2006 and has nine years of investment related experience. Prior to joining the firm, Neil worked as a hedge fund analyst at Credit Suisse. Previously, he worked as a consultant for Prologic Corporation, a banking solutions provider. Neil received a BEng in electrical and electronics engineering from Manipal Institute of Technology, India, a Graduate Diploma in computer science from University of Newcastle, Australia, an MBA in finance from University of British Columbia, Canada and an MSc in mathematics and finance from Imperial College, London. Fund: European Optimised Research Extension.

FENG CHANG, PHD Managing Director Feng is a portfolio manager and the senior quantitative research analyst on the Systematic Active Equity team. He joined Morgan Stanley in 2004 and has 17 years of investment experience. Prior to joining the firm, he was a senior research analyst at Citigroup Asset Management. Feng received a BS in business from Tsinghua University and an MS and PhD in finance from the University of California. Funds: European Systematic Equity, Global Systematic Equity, Japanese Systematic Equity, US Systematic Equity.

JAMES CHENG Managing Director James is the lead portfolio manager for Asian Equity strategies. He joined Morgan Stanley in 2006 and has 20 years of investment experience. Prior to joining the firm, James was the chief investment officer for Asia at Invesco Asia Fund Management in Hong Kong. Prior to that, he was a co-founder and portfolio manager at Asia Strategic Investment Management. Before this, James was a portfolio manager for Morgan Stanley Investment Management’s Asian Equity team where he covered both North and South Asian markets. He received a BSS in economics, accounting and computer science from the University of Hong Kong and an MBA in finance from the University of Michigan. Fund: Asian Equity.

DAVID COHEN Managing Director David is a senior investor for the US Equity Growth team. He joined Morgan Stanley in 1993 and has 20 years of investment experience. Prior to joining the firm, David was a senior fund accountant at Alliance Capital and a fund accountant at Natwest and Wall Street Trust. David received a BS in management from Pace University. Funds: Global Equity Growth, US Equity Growth, US Small Cap Growth.

ALISTAIR CORDEN-LLOYD Executive Director Alistair is a member of the European, Global and International Small Cap teams. He joined Morgan Stanley in 1997 and has seven years of investment experience. Prior to joining the firm, Alistair worked in the luxury goods industry. He received a BSc in geography from Kingston University, an MBA from the Graduate School of Business, University of Cape Town, and an MSc in computer science from Kent University. Funds: European Small Cap Value, Global Small Cap Value.

112 Morgan Stanley SICAV Quarterly Report - March 2008 MICHAEL DAVEY, CFA Vice President Michael is a portfolio manager of various Morgan Stanley taxable money market funds. He joined Morgan Stanley in 1994 and has 17 years of investment experience. Prior to joining the firm, he was an investment analyst at Hartford Steam Boiler Inspection and Insurance Company and the Norwich Savings Society. Michael received a BS in geological oceanography from the Florida Institute of Technology and an MBA in finance from the University of Connecticut. He holds the Chartered Financial Analyst designation and is a member of the New York Society of Security Analysts. Fund: US Dollar Liquidity.

JONATHAN DAY Executive Director Jonathan is a portfolio manager for the European Equity strategies. He joined Morgan Stanley in 2006 and has 13 years investment experience. Prior to joining the firm, Jonathan was a European equity portfolio manager at Société Générale Asset Management. Previously, he was a fund manager on the European desk at Morgan Stanley Quilter, responsible for Europe ex-UK and UK Balanced accounts. Jonathan holds the ASIP designation and is an associate member of the CFA Institute. Funds: European Equity, European Equity Opportunities, Eurozone Equity Opportunities.

NATHALIE DEGANS Managing Director Nathalie is co-head of the Global and International Small Cap Value strategies and head of the European Small Cap Value strategy. She joined Morgan Stanley in 1993 and has 12 years of investment experience. Prior to her current role, Nathalie worked at Morgan Stanley Corporate Treasury London as an equity analyst. Previously, she worked as a lending officer in the commodities department of Banque Indosuez New York. Nathalie received a BA in business from ISG University, France, and an MBA from INSEAD, France. Funds: European Small Cap Value, Global Small Cap Value.

PARAS DODHIA Executive Director Paras is a research analyst for the Global and American Franchise strategies. He joined Morgan Stanley in 2002 and has eight years of investment experience. Prior to joining the firm, he was an equity analyst at JPMorgan Chase and previously a strategy consultant for Oliver Wyman & Company. Paras received a BSc in management from the London School of Economics and an MPhil in finance from the University of Cambridge. Funds: American Franchise, Global Brands.

ELSA DOYLE, CFA Vice President Elsa is a portfolio manager of various Morgan Stanley taxable money market funds. She joined Morgan Stanley in 1999 and has 11 years of investment experience. Prior to joining the firm, she was an analyst at Thomson Financial BankWatch, Inc. and a financial bank examiner at the Federal Reserve Bank of New York. Elsa received a BA in economics and finance from Pennsylvania State University and an MBA in financial markets and quantitative finance from New York University, Stern Schoool of Business. She holds the Chartered Financial Analyst designation and is a member of the New York Society of Security Analysts. Fund: US Dollar Liquidity.

FREDERIC DUBINSKI Senior Associate Frederic is a portfolio manager in the Quantitative and Structured Solutions team. He joined Morgan Stanley in 2007 and has three years of relevant industry experience. Prior to joining the firm, he was a quantitative analyst at Endeavour Capital Management. Frederic received a civil engineering degree in mechatronics from the Universite Libre de Bruxelles and an MSc in computer aided mechanical engineering from King's College University, London. Fund: European Optimised Research Extension.

Morgan Stanley SICAV Quarterly Report - March 2008 113 HASSAN ELMASRY, CFA Managing Director Hassan is the lead portfolio manager for the Global and American Franchise strategies. He joined Morgan Stanley in 1995 and has 24 years of investment experience. Prior to joining the firm, Hassan was an international equity portfolio manager for Mitchell Hutchins Asset Management. Previously, he worked as an international equity analyst for First Chicago Corporation. Hassan received an AB in economics and an MBA in finance, both from the University of Chicago Graduate School of Business. He holds the Chartered Financial Analyst designation and is a member of the CFA Institute. Funds: American Franchise, Global Brands.

RICHARD FORD, ACA Executive Director Richard is a member of the Fixed Income team. He joined Morgan Stanley in 1991 and has 14 years of investment experience. Prior to his current role, he was a European credit trader. Before joining the firm, he was a chartered accountant with Ernst & Young. Richard received a BComm in business studies from Edinburgh University and is a qualified Chartered Accountant. Funds: Euro Corporate Bond, Euro Strategic Bond.

J. DAVID GERMANY, PHD Managing Director David is chief investment officer and head of Global Fixed Income. He first joined Morgan Stanley in 1987 and has 27 years of investment related experience. He left the firm in 1991 to join Miller Anderson & Sherrerd (MAS), and rejoined Morgan Stanley as head of Global Fixed Income when MAS was acquired in 1996. David has served on the faculty of Princeton University, worked as an international economist on the Board of Governors of the US Federal Reserve and was the senior staff economist in charge of international finance for the President’s Council of Economic Advisers. David received an AB in economics from Princeton University and a PhD in economics from the Massachusetts Institute of Technology. Fund: Global Bond.

CHRIS GODDING Managing Director Chris is a member of Morgan Stanley’s Private Wealth Management division and has responsibility for multi-asset class portfolios. He joined Morgan Stanley in 2002 has nearly 20 years of experience in the investment management business, in both traditional fund management and hedge fund management. Previously, he led the Investment Group’s Equity Team. Prior to joining the firm, Chris managed US funds for BZW in New York and Toronto. On his return to the UK, he joined Prolific, moved to establish the SocGen Technology Fund and then moved to Moore Capital, a long/short hedge fund. Chris received a degree in economics from Sussex University. Funds: Global Diversified (Euro), Global Diversified (USD).

LEON GRENYER Executive Director Leon is a member of the Fixed Income team. He joined Morgan Stanley in 2002 and has 12 years of investment experience. Prior to joining the firm, he was a credit analyst and investment analyst at Abbey National Treasury Services. Leon received a BS in geography from the University of Bristol. Fund: European Currencies High Yield Bond.

NOREEN GRIFFIN Vice President Noreen is a portfolio manager for the Global Value Equity strategy, with a focus on financials, media research and portfolio construction. She joined Morgan Stanley in 2005 and has ten years of investment experience. Prior to joining the firm, she was a portfolio manager at Setanta Asset Management. Noreen received a BA in economics from Trinity College, Dublin, and an MBS in financial services from UCD, Graduate School of Business, Dublin. She also holds the Certificate in Investment Management and she passed her IIMR exams under the Society of Investment Analysts in Ireland. Fund: Global Value Equity.

114 Morgan Stanley SICAV Quarterly Report - March 2008 ANGELINE HO Managing Director Angeline is a portfolio manager for the Asian Real Estate strategy. She joined Morgan Stanley in 1997 and has 16 years of investment experience. Prior to joining the firm, Angeline was a research manager at SG Securities and a senior research analyst at Schroder Securities. Previously, she was a research analyst at BZW Securities and an appraiser and a consultant at Debenham Tewson International. Angeline received a BS in estate management from the National University of Singapore and an MBA in accounting from the Nanyang Technological University. Funds: Asian Property, Global Property.

KEVIN C. HOLT, CFA Managing Director Kevin is a portfolio manager for the US Value Equity strategy. He joined Van Kampen in 1999 and has 19 years of investment experience. Prior to joining the firm, Kevin was a senior research analyst at Strong Capital Management. Kevin received a bachelor’s degree from the University of Iowa and an MBA from the University of Chicago Graduate School of Business. He holds the Chartered Financial Analyst designation. Kevin is a member of the CFA Institute and the Houston Society of Financial Analysts. Fund: US Value Equity.

FEDERICO KAUNE, PHD Executive Director Federico is a member of the Fixed Income team. He joined Morgan Stanley in 2002 and has 14 years of investment experience. Prior to joining the firm, Federico was a senior vice president and senior economist at Goldman Sachs. Previously, he was an economist at the International Monetary Fund and a lecturer at the University of Chicago Graduate School of Business. Federico received a BA in economics from Universidad del Pacifico, Peru, and an MA and PhD in economics from the University of Chicago. Federico is a member of the American Economic Association. Funds: Emerging Markets Debt, Emerging Markets Domestic Debt.

JOHN KELLY-JONES Executive Director John is a portfolio specialist for the Global and American Franchise strategies. He joined Morgan Stanley in 1998 and has 21 years of investment industry experience. Prior to joining the firm, he spent nine years in commercial and investment banking in Europe, the US and Australia, and six years developing investment management businesses in Australia and Indonesia. John is fluent in German and received a BSc in finance and a BA in German, both from the University of Illinois. Funds: American Franchise, Global Brands.

JONAS KOLK Executive Director Jonas is a senior portfolio manager of various Morgan Stanley taxable money market funds. He joined Morgan Stanley in 2004 and has 17 years of investment experience. Prior to joining the firm, he was a senior portfolio manager at AIG Capital Markets and Chase Asset Management and a money market trader at Metropolitan Life Insurance Co. Jonas received a BS in finance from the State University of New York, Albany, and an MBA from Fordham University Graduate School of Business. Fund: US Dollar Liquidity.

MICHAEL B. KUSHMA Managing Director Michael is a member of the Fixed Income team. He joined Morgan Stanley in 1987 and has 20 years of investment experience. Previously, he was a global fixed income strategist for the firm's Fixed Income Division. Prior to joining the firm, Michael was a senior lecturer of economics at Columbia University. Michael received an AB in economics from Princeton University, an MSc in economics from the London School of Economics and an MPhil in economics from Columbia University. Funds: Euro Bond, Euro Strategic Bond, Global Bond, Short Maturity Euro Bond.

Morgan Stanley SICAV Quarterly Report - March 2008 115 ALICE LA TROBE-WESTON, CFA Vice President Alice is a member of the Fixed Income team. She joined Morgan Stanley in 2005 and has ten years of investment experience. Prior to joining the firm, she worked at Henderson Global Investors, where served as a senior analyst. Previously, she worked at JPMorgan. Alice received an MA in geography from Cambridge University and an MSc in political economy from the London School of Economics. She holds the Chartered Financial Analyst designation. Fund: European Currencies High Yield Bond.

WILLIAM T. LAWRENCE, CFA Executive Director Bill is a member of the Fixed Income team. He joined Morgan Stanley in 1998 and has 23 years of investment experience. Prior to joining the firm, he worked as the director of fixed income at CoreStates Investment Advisers and a vice president of fixed income sales at Credit Suisse First Boston. Bill received a BA in economics and English from Bucknell University and an MBA in finance from the Wharton School of the University of Pennsylvania. He holds the Chartered Financial Analyst designation and is a member of the CFA Society of Philadelphia. Fund: US Dollar Short Duration.

JASON S. LEDER, CFA Managing Director Jason is a portfolio manager for the US Value Equity strategy. He joined Van Kampen in 1995 and has 19 years of investment experience. Prior to joining the firm, Jason was a securities analyst at Salomon Brothers and held similar positions at Fidelity Management and Research, Gabelli and Company, and Austin, Calvert and Flavin. Jason received a Bachelor’s degree from the University of Texas and an MBA from Columbia University. He holds the Chartered Financial Analyst designation and is a member of the CFA Institute and the Houston Society of Financial Analysts. Fund: US Value Equity.

MATTHEW LEEMAN Managing Director Matthew is head of European Equity strategies. He joined Morgan Stanley in 2006 and has 16 years of investment experience. Prior to joining the firm, Matthew was a director at Société Générale Asset Management where he managed Pan European, Europe ex-UK and Eurozone equity strategies. Previously, Matthew was a partner at Weavering Capital and before that, a senior fund manager on the European desk at Lombard Odier Darier Hentsch, where he was responsible for their largest institutional clients. Matthew received a BA in modern languages (French and German) from King’s College, London, and an MA in European Management from Cranfield Business School. Funds: European Equity, European Equity Opportunities, Eurozone Equity Opportunities.

CORINNE LEWIS-REYNIER Executive Director Corinne is a member of the Fixed Income team. She joined Morgan Stanley in 2006 and has 12 years of investment experience. Prior to joining the firm, she was a senior portfolio manager in the short duration team at JPMorgan Asset Management. Corinne was also a European government bonds and derivatives trader for the fixed income group. She received a BA in economics from the University of Aix-Marseille, France, an MA in finance from the University of Sussex and an MBA from the London Business School. Fund: Euro Liquidity.

DENNIS LYNCH Managing Director Dennis is the team leader for New York-based US Equity Growth investing. He joined Morgan Stanley in 1998 and has 14 years of investment experience. Prior to joining the firm, he worked as a sell-side analyst for JPMorgan Securities. Dennis received a BA in political science from Hamilton College and an MBA in finance from Columbia University. Funds: Global Equity Growth, US Equity Growth, US Small Cap Growth.

116 Morgan Stanley SICAV Quarterly Report - March 2008 DOUG MCGRAW, CFA Executive Director Doug is a portfolio manager for the Global Value Equity strategy and specialises in the industrials, insurance and telecom sectors. He joined Morgan Stanley in 2001 and has nine years of investment experience. Prior to joining the London business, he spent two years in the Financial Services Trust at Morgan Stanley Investment Management. Doug received a BSc in business and finance from Miami University and an MBA from the University of Notre Dame. He holds the Chartered Financial Analyst designation. Fund: Global Value Equity.

ABIGAIL MCKENNA, CFA Managing Director Abby is a member of the Fixed Income team. She joined Morgan Stanley in 1996 and has 20 years of investment experience. Prior to joining the firm, Abby was a senior portfolio manager at MIMCO, a limited partner at Weiss, Peck & Greer and a portfolio manager at HGK Asset Management. She received a BA in international relations from Georgetown University and holds the Chartered Financial Analyst designation. Abby is a chairperson of the Emerging Markets Creditors Association and a member of the New York Society of Security Analysts. Funds: Emerging Markets Debt, Emerging Markets Domestic Debt.

COLIN MCQUEEN Executive Director Colin is lead portfolio manager for the Global Value Equity strategy, with a focus on fundamental analysis and portfolio construction. He joined Morgan Stanley in 2005 and has 18 years of investment experience. Prior to joining the firm, Colin worked at UBS Global Asset Management as a portfolio manager for global equity strategies and was also lead manager for the global high alpha, global ex-UK and multi-national portfolios. Colin received a BSc in economics from the University of Warwick and an MPhil in economics from Emmanuel College, University of Cambridge. Fund: Global Value Equity.

TADAO MINAGUCHI Executive Director Tadao is a portfolio manager for our Japanese Equity Advantage portfolios. He joined Morgan Stanley in 1997 and has 11 years of investment experience. Prior to joining the firm, he was a member of the investment banking department at JPMorgan. After undergoing training in Japan and New York, he conducted research on industry trends and individual corporate valuations in the electrical appliance, precision equipment and pharmaceutical sectors in connection with corporate capital, debt finance and M&A transactions. Tadao received his bachelors and masters degrees in law from Keio University. He is a Chartered Member of the Security Analysts Association of Japan. Fund: Japanese Equity Advantage.

MARTIN MOORMAN Executive Director Martin is a portfolio manager for the Global Value Equity strategy, specialising in the Asian markets. He joined Morgan Stanley in 2003 and has 13 years of investment experience. Prior to joining the firm, Martin was a portfolio manager for Delaware International Advisers Ltd., covering pacific equities. He also worked for Murray Johnstone Ltd. as a fund manager of Japanese equities. Martin received an MA in economics from Aberdeen University and an MSc in investment analysis from the University of Stirling. Fund: Global Value Equity.

ARUNABH MUKHERJEE Vice President Arunabh is a portfolio manager of the FX Alpha Plus and Commodities Alpha Plus strategies. He joined Morgan Stanley in 2004 and has six years of investment experience. Prior to joining the firm, he was an associate at JPMorgan, focusing on FX Options and Commodities. Arunabh received a BA in mathematics from the University of Delhi and an MSc in interdisciplinary mathematics from the University of Warwick. Funds: Commodities Alpha Plus, FX Alpha Plus RC 200 (Euro), FX Alpha Plus RC 200 (Sterling), FX Alpha Plus RC 200 (US Dollar), FX Alpha Plus RC 400 (Euro), FX Alpha Plus RC 400 (Sterling), FX Alpha Plus RC 400 (US Dollar), FX Alpha Plus RC 800 (Euro), FX Alpha Plus RC 800 (Sterling), FX Alpha Plus RC 800 (US Dollar).

Morgan Stanley SICAV Quarterly Report - March 2008 117 MARGARET NAYLOR Managing Director Margaret is co-head of the International and Global Small Cap Value teams. She joined Morgan Stanley in 1987 and has 19 years of investment experience. Prior to joining the firm, she worked at the Trade Policy Research Centre. Margaret received a BSc in biology from the University of York. Fund: Global Small Cap Value.

ALEXANDER NORTON Executive Director Alex is a senior investor for the US Equity Growth team. He joined Morgan Stanley in 2000 and has 13 years of investment experience. Prior to joining the firm, Alex was an associate in equity derivative sales and later an associate in equity research at Donaldson, Lufkin & Jenrette. Previously, he was a bond broker with Cantor Fitzgerald. Alex received a BA in history from the University of Pennsylvania and an MBA in finance from Columbia University. Funds: Global Equity Growth, US Equity Growth, US Small Cap Growth.

PAUL F. O’BRIEN, PHD Executive Director Paul is a member of the Fixed Income team. He joined Morgan Stanley in 1996 and has 25 years of investment experience. Prior to joining the firm, Paul was head of European economics at JPMorgan. Previously, he worked as an economist for the Organization for Economic Cooperation and Development, the Bank for International Settlements and the Board of Governors of the US Federal Reserve System. Paul attended the United States Naval Academy. He received a BS in economics from the Massachusetts Institute of Technology and a PhD in economics from the University of Minnesota. Funds: US Bond, US Dollar Short Duration.

DAIJI OZAWA Executive Director Daiji is the co-manager of the Japanese Value Equity strategy. He joined Morgan Stanley in 2007 and has 21 years of investment experience. Prior to joining the firm, he was a director and a senior portfolio manager at Western Asset Management, Tokyo, and Citigroup Asset Management. Prior to that, he was a senior portfolio manager at Tokyo-Mitsubishi Asset Management. He began his career as a banker at the Bank of Tokyo. Daiji received a BA in political science from Waseda University. He holds the Chartered Financial Analyst designation and is a Chartered Member of the Security Analysts Association of Japan. Fund: Japanese Value Equity.

ANA CRISTINA PIEDRAHITA Executive Director Cristina is a portfolio manager for the Latin American Equity strategy. She joined Morgan Stanley in 2002 and has 13 years of investment experience. Prior to joining the firm, she was a Latin American equity analyst at Fidelity Investments, HSBC Asset Management and Baring Asset Management. Cristina received a BA in economics and political science from Brown University and an MBA in business administration from the Sloan School of Management at the Massachusetts Institute of Technology. Fund: Latin American Equity.

WILLIAM SCOTT PIPER Executive Director Scott is portfolio manager for the Latin American Equity strategy. He joined Morgan Stanley in 2002 and has 14 years of investment experience. Prior to joining the firm, Scott was a portfolio manager at Deltec Asset Management. Scott received a BA in international relations from Tulane University and an MBA in international finance from the IESE Business School. Fund: Latin American Equity.

118 Morgan Stanley SICAV Quarterly Report - March 2008 PAUL PSAILA, CFA Managing Director Paul is a portfolio manager for the Emerging Markets Equity portfolios, focusing on global macro analytics. He joined Morgan Stanley in 1994 and has 14 years of investment experience. Prior to joining the firm, he was a research associate at the International Monetary Fund. Paul received a BA in political science from Brandeis University and a master’s degree in economic and Latin American studies from the School of Advanced International Studies of Johns Hopkins University. He holds the Chartered Financial Analyst designation. Funds: Emerging Europe, Middle East and North Africa Equity.

SCOTT F. RICHARD Managing Director Scott is a member of the Fixed Income team. He joined Morgan Stanley in 1992 and has 21 years of investment experience. Prior to joining the firm, he was head of mortgage research at Goldman Sachs. Previously, Scott was a visiting professor of finance at Massachusetts Institute of Technology and a professor of financial economics at Carnegie-Mellon University. Scott received a BS in engineering from Massachusetts Institute of Technology and a DBA in decision and control from the Harvard Graduate School of Business Administration. Fund: US Bond.

EDWARD RIPPLE Vice President Edward is a member of the Expanded Value team and a portfolio manager for the US Equity strategy. He joined the firm in 1996 and has 18 years of industry experience. Prior to joining the firm, he worked in the investments department at McKinsey & Company and was a member of JPMorgan Chase’s corporate trust department. Edward received a bachelor degree in economics from the University at Albany and an MBA in finance and banking from Hofstra University’s Zarb School of Business. Fund: US Equity.

IRA ROSS Executive Director Ira is lead portfolio manager of the Expanded Value team and a portfolio manager for the US Equity strategy. He joined Morgan Stanley in 1980 and has more than 40 years of investment experience. Prior to joining the firm, he was a portfolio manager with Hutton Investment Management and senior vice president and vice chairman of the Investment Committee of the Anchor Group of Mutual Funds. He received an MA in economics from the University of Nebraska and a BA in business administration and economics from Guilford College. He is a member of the CFA Institute, the New York Society of Security Analysts and the Bond Club of New York Fund: US Equity.

CHRISTIAN G. ROTH, CFA Managing Director Chris is a member of the Fixed Income team. He joined Morgan Stanley in 1991 and has 21 years of investment experience. Prior to joining the firm, he was a senior associate in the merchant banking group of Dean Witter Capital Corporation. Chris received a BS in economics from the Wharton School of the University of Pennsylvania. He holds the Chartered Financial Analyst designation and is a member of the UK Society of Investment Professionals. Funds: Euro Bond, Euro Corporate Bond, Euro Strategic Bond, Global Bond, Global Convertible Bond (Euro), Global Convertible Bond (USD), Short Maturity Euro Bond.

HISANORI SEKIYA Vice President Hisanori is co-manager of the Japanese Equity Growth strategy and a research analyst focusing on Japanese Equity Growth and small cap equity. He joined Morgan Stanley in 2002 and has seven years of investment experience. Prior to joining the firm, he was a managing director at Investation Co. Ltd, a venture capital company. Before that, he spent one year with Morgan Stanley as a Japanese Equity analyst and worked in sales and marketing at Jardine Fleming Securities. Hisanori received a BA in business and commerce from Keio University and is a Chartered Member of the Security Analysts Association of Japan. Fund: Japanese Equity Growth.

Morgan Stanley SICAV Quarterly Report - March 2008 119 RUCHIR SHARMA Managing Director Ruchir is head of the Global Emerging Markets Equity team and a member of the Global Tactical Asset Allocation Investment Committee. He joined Morgan Stanley in 1996 and has 14 years of investment experience. Prior to joining the firm, he worked with Prime Securities, Delhi, a non-banking financial services firm, where he helped run the firm's foreign exchange business. Ruchir is a columnist with Newsweek. He also writes for publications such as The Wall Street Journal and The Economic Times, India’s leading financial daily. Ruchir received a BA in commerce from the Shri Ram College of Commerce, Delhi. Funds: Asian Equity, Emerging Markets Equity, Indian Equity.

JUSTIN SIMPSON Managing Director Justin is head of the Global Structured Product Group. He joined Morgan Stanley in 1990 and has 18 years of financial industry experience. Prior to his current role, Justin was a managing director in the Institutional Securities Group, holding the position of director of global economics, currency, interest rate and emerging markets debt strategy. Justin received an MBA from Harvard University (George F. Baker Scholar) and a BComm from the University of Cape Town. Fund: European Optimised Research Extension.

JAMES SOLLOWAY, CFA Executive Director James is a member of the Expanded Value team and a portfolio manager for the US Equity strategy. He joined the firm in 1998 and has more then 30 years of industry experience. Previously, he served as director of research and head of the equity management group at the Jacksonville-based Barnett Capital Advisors. James also spent 17 years at Argus Research Corp., an independent equity research firm in New York. He began his career at Rinfret Associates, an economics consulting firm. James received a bachelor’s degree in economics from Columbia College and an MBA from New York University’s Stern School of Business. He also holds the Chartered Financial Analyst designation. Fund: US Equity.

DAVID SUGIMOTO, CFA Executive Director David is a portfolio manager for the International Equity Growth team. He joined Morgan Stanley in 2005 and has 28 years of investment experience. Prior to joining the firm, David was an international equity portfolio manager at 1838 Investment Advisors. Before that, he was an international equities analyst at USAA Investment Management and the Teachers Retirement System of Texas, as well as a portfolio manager at Bank of America. David received both a BS in economics and an MBA in finance from Texas Christian University. He holds the Chartered Financial Analyst designation. Fund: Global Equity Growth.

KUNIHIKO SUGIO Managing Director Kunihiko is the lead portfolio manager for the Japanese Value Equity strategy. He joined Morgan Stanley in 1993 and has 22 years of investment experience. Prior to joining the firm, he was a director and a fund manager at Baring International Investment Management Company Limited, Tokyo. Prior to this, he worked for Okasan Securities Company Limited for eleven years in Tokyo, London and New York in Japanese equity research and institutional sales. Kunihiko received a BA in economics from Wakayama University. Fund: Japanese Value Equity.

MICHIEL TE PASKE Managing Director Michiel is a portfolio manager for the European real estate securities investment management business. He joined Morgan Stanley in 1997 and has 11 years of investment experience. Prior to joining the firm, Michiel was a research analyst at the Limburg Institute of Financial Economics. Michiel received an MS in economics from Maastricht University. Funds: European Property, Global Property.

120 Morgan Stanley SICAV Quarterly Report - March 2008 HIROSHI UEDA Managing Director Hiroshi is the lead portfolio manager for the Japanese Equity Growth strategy. He joined Morgan Stanley in 1996 and has 19 years of investment experience. Prior to joining the firm, he was an equity portfolio manager for domestic pension funds at Dai-ichi Mutual Life Insurance Company. He was ranked the number one Japanese Equity Portfolio Manager by Nikkei Money in August 1999. Hiroshi received a BA in law from the University of Tokyo. Fund: Japanese Equity Growth.

HANS VAN DEN BERG Managing Director Hans is head of the International Equity Growth team. He joined Morgan Stanley in 2005 and has more than 28 years of investment experience. Prior to joining the firm, Hans was head of international equities at 1838 Investment Advisors. Before that, he served as managing director and chief investment officer for Pierson Capital in Amsterdam. Hans also worked as a European equity portfolio manager for the Royal Dutch/Shell pension fund in The Hague. Hans received a BBA from Nijenrode University, The Netherlands, and an MBA from Temple University. Fund: Global Equity Growth.

SVEN VAN KEMENADE Managing Director Sven is a portfolio manager for the European real estate securities investment management business. He joined Morgan Stanley in 1997 and has 11 years of investment experience. Prior to joining the firm, he was a research analyst at the Limburg Institute of Financial Economics. Sven received an MS in econometrics from Maastricht University. Funds: European Property, Global Property.

ALEX VISLYKH Vice President Alexander is a portfolio manager for the Global Value Equity strategy and specialises in the material and consumer discretionary (ex. media) sectors. He joined Morgan Stanley in 2002 and has six years of investment experience. Prior to joining the firm, Alexander was a senior consultant at Cap Gemini Ernst & Young. He received a BA from Webster University, Vienna, and an MSc in finance from the London Business School. He holds the Chartered Financial Analyst designation and is fluent in German and Russian. Fund: Global Value Equity.

JAYSON VOWLES, CFA Vice President Jayson is a research analyst for the Global and American Franchise strategies. He joined Morgan Stanley in 2003 and has seven years of investment experience. Prior to joining the firm, Jayson worked at Goldman Sachs and previously at Deloitte & Touche. He received a BComm and a postgraduate diploma in accounting from the University of Natal. Jayson holds the Chartered Financial Analyst designation and is a member of both the South African Institute of Chartered Accountants and the CFA Institute. Funds: American Franchise, Global Brands.

JASON YEUNG, CFA Executive Director Jason is a senior investor for the US Equity Growth team. He joined Morgan Stanley in 2002 and has 11 years of investment experience. Jason joined the Growth team in 2004 as an investor. Previously, he was a member of the US Research group, working closely with the Growth team. Prior to joining the firm, Jason was a senior research analyst at Ramius Capital Group. Previously, he was an equity research associate at Deutsche Bank. Jason received a BA in international relations from Johns Hopkins University and an MPhil in international relations from the University of Cambridge. He holds the Chartered Financial Analyst designation. Funds: Global Equity Growth, US Equity Growth, US Small Cap Growth.

Morgan Stanley SICAV Quarterly Report - March 2008 121 Glossary for SICAV report

ALPHA* MATURITY When two investments are compared (normally a fund versus The date on which a debt instrument falls due or becomes an index), the alpha represents the theoretical return of the largely payable; the date on which an agreement or contract first investment when the second investment has a zero return. must be settled, fulfiled, or repaid; or the date on which it Alpha is calculated using monthly returns for the previous ceases to be binding. three years. MEDIAN CONVERSION PREMIUM AVERAGE MATURITY The average amount by which the price of a convertible The weighted average time (in years) of a portfolio for the security exceeds the current market value of the common stock repayment of principal. into which it may be converted, measured as a percentage of the conversion value. BETA* Beta is a relative measure of the sensitivity of an investment's PRICE/BOOK VALUE (P/BV) return to changes in the benchmark's return. The ratio of the sum of the market values of the companies whose shares are held in a portfolio to their aggregate book CURRENT YIELD value. Annual income (interest or dividends) divided by the current price of the security. For stocks this is also referred to as the PRICE/CASH FLOW (P/CF) dividend yield. The ratio of the sum of the market values of the companies whose shares are held in a portfolio to their aggregate reported DELTA cash flow. Delta expresses the sensitivity of a convertible security (or portfolio) to changes in the underlying stock price. It expresses PRICE/EARNINGS (P/E) the expected percentage change in the convertible price per The weighted average of the price/earnings multiples of the 100 percent change in the underlying common stock price. securities held in a portfolio, based on the ratio of each company's market price to its published earnings for the DURATION trailing 12-month period. Duration is a measure of interest rate risk. It provides an estimate of the percentage change in bond price or portfolio PRICE/FREE CASH FLOW (P/FCF) for a one percent change in bond yield. The duration of a The ratio of the sum of the market values of the companies portfolio is expressed in years. Duration assumes that all whose shares are held in a portfolio to their aggregate reported movements in interest rates are parallel. free cash flow. Free cash flow is defined as a company's operating cash flow less the maintenance level of its capital INFORMATION RATIO* expenditure. This is the ratio of the excess annualised return against the tracking error (see Tracking Error). RHO Rho is a measure used to express the interest rate sensitivity of INTEREST RATE SENSITIVITY a convertible security or portfolio. It expresses the expected A proprietary measure of interest rate risk which, similar to percentage change in the convertible price per one percent duration, measures the price change of a bond or portfolio in change in interest rates. response to a shift in interest rates. Interest Rate Sensitivity is a more sophisticated measure than duration because it adjusts R SQUARED (CORRELATION)* for the sensitivity of bonds of different maturities. The Interest A statistical measure of the degree to which the movements of Rate Sensitivity of a portfolio is expressed in years. two investments (typically a fund and its benchmark) are related. If R2 equals one, the two investments are perfectly correlated (i.e., they behave in exactly the same manner); when R2 equals zero, there is no correlation between the two investments being compared.

122 Morgan Stanley SICAV Quarterly Report - March 2008 STANDARD DEVIATION YIELD TO PUT/YIELD TO CALL A statistical measure of the degree to which an individual value Yield to Call and Yield to Put are measures of Yield to in a probability distribution tends to vary from the mean of Maturity, but which assume that the bond will redeem on a the distribution, The greater the degree of dispersion, the date prior to the actual final maturity date. It may be that the greater the risk. issuer has the option to 'call' the bond early (Yield to Call), or the investor has the option to 'put' the bond early (Yield to TOTAL RETURN Put). The percentage change in a fund's price between two given dates, adjusted for the value of any distributions paid during YIELD TO WORST the specified period. The lowest yield of the yield to maturity or of all of the yields calculated to optional call dates. This represents the worst-case TRACKING ERROR* return for the investor. A measure of the dispersion of the excess return of a fund relative to its benchmark. 7-DAY YIELD 7-day yield refers to income generated over the previous YIELD TO MATURITY seven-day period: the income is then annualised. A measure of the annual return on income-paying securities assuming that they are held to maturity. This measure * These statistics are calculated using arithmetic averages as opposed to log arithmetic. accounts for both the interest payments received throughout the life of the security and the repayment of principal at maturity.

Morgan Stanley SICAV Quarterly Report - March 2008 123 Contact your sales team

FRANCE SINGAPORE Morgan Stanley & Co. International PLC Morgan Stanley Investment Management Company 61 rue de Monceau 23 Church Street 75008 Paris #16-01 Capital Square France Singapore 049481 Tel: 331-42 90 70 00, fax: 331-42 90 70 99 Tel: 65-6834-6800, fax: 65-6834-8968 Email: [email protected] Email: [email protected]

GERMANY & AUSTRIA SPAIN Morgan Stanley Bank AG Morgan Stanley Junghofstrasse 13-15 Serrano 5528006 D-60311 Frankfurt a.M. Madrid Germany Spain Tel: 49-69-2166 2610, fax: 49-69-2166 2699 Tel: 34-91-412 11 00 (outside Spain) Email: [email protected] Tel: 900-122 641 (in Spain) Fax: 34-91-435 7707 HONG KONG Email: [email protected] Morgan Stanley Dean Witter Asia Limited 30th Floor SWITZERLAND 3 Exchange Square Bank Morgan Stanley AG Central Hong Kong Bahnhofstrasse 92 Tel: 852-2848 5200, fax: 852-2848 6618 CH-8023 Zurich Email: [email protected] Switzerland Tel: 41-44-220 9556 ITALY Email: [email protected] Morgan Stanley Bank International Ltd Palazzo Serbelloni UNITED KINGDOM Corso Venezia, 16 Morgan Stanley Investment Management Limited 20121 Milan 25 Cabot Square Italy Canary Wharf Tel: 39-02-76331, fax: 39-02-76335413 London E14 4QA Email: [email protected] United Kingdom Tel: 44-(0)20-7425 8701, fax: 44-(0)20-7425 7832 LUXEMBOURG Email: [email protected] Morgan Stanley Investment Management Limited 6B route de Trèves THE AMERICAS* L-2633 Senningerberg Morgan Stanley Investment Management Grand Duchy of Luxembourg 1221 Avenue of the Americas New York, New York 10020 NETHERLANDS United States of America Morgan Stanley Investment Management Limited Tel: 1-800-231 2026 Rembrandt Tower Email: [email protected] 11th Floor Amstelplein 1 *Shares in the Morgan Stanley SICAV Fund are not for distribution in the United States or to US persons other than in accordance with the laws of the United 1096 HA Amsterdam States. The Netherlands Tel: 31-20-462 1300, fax: 31-20-462 1310 Email: [email protected]

124 Morgan Stanley SICAV Quarterly Report - March 2008 Morgan Stanley Investment Management M O R G A N

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For business and professional clients and not for use may be restricted. assets and the risk of war (5) settlement systems may be A with the general public. less well organised and less developed and (6) debt may R In particular, the Shares are not for distribution in the United not be rated by any internationally recognised credit rating C Applications for shares in any Morgan Stanley SICAV States or to US persons other than in accordance with the organisation. H

Fund should not be made without first consulting the laws of the United States. 2 current Prospectus, Annual Report and Semi-Annual There are also varying levels of government supervision 0 Report ('Offering Documents'), which are available free This document neither constitutes an offer by Morgan Stanley and regulation of exchanges, financial institutions and 0 of charge at the address below. Investment Management Limited of Shares or of any other issuers in various countries. In addition, accounting, 8 investment products or investment service, nor an invitation to auditing, financial and other reporting standards are not www.morganstanley.com/sicav the recipient to respond to the document by making an offer equivalent to those of more developed countries, and The Morgan Stanley SICAV website is directed only to persons to purchase Shares or to purchase any other investment therefore less information may be available than in more located in Austria, France, Germany, Italy, Luxembourg, Spain, product or investment service. In addition, all Italian investors developed countries. Sweden, Switzerland and the United Kingdom. should refer to the ‘Extended Application Form’, and all Hong Kong investors should refer to the ‘Additional Information for 2) High yield securities; investment in higher yielding Swiss investors are advised that the Simplified Prospectus, Hong Kong Investors’ section, outlined within the Prospectus. securities is speculative as it generally entails increased the Prospectus, the Articles of Incorporation of the Company, credit and market risks. Such securities are subject to the the audited Annual Reports and the unaudited Semi-Annual If you are a distributor of the Morgan Stanley SICAV, some or risk of an issuer’s inability to meet principal and interest Contents Reports may be obtained free of charge from the all of the funds may be available for distribution. Please refer payments on the obligations (credit risk) and may be Representative Agent in normal business hours. Bank Morgan to your sub-distribution agreement, for these details before subject to price volatility due to such factors as interest Stanley AG, Bahnhofstrasse 92, 8023 Zurich, is the forwarding fund information to your clients. rate sensitivity, market perception of the credit worthiness 1 Fund list representative and paying agent (the “Representative Agent”) of the issuer and general market liquidity. of the Company in Switzerland. The Morgan Stanley SICAV is Purchase of Shares in the UK may, depending on the 2 Market outlook domiciled in Luxembourg. circumstances, carry a right of cancellation in favour of the 3) Securities of small capitalisation companies; these investor. Similar rights may apply in other jurisdictions. If you securities involve greater risk than large capitalisation Important information are in any doubt about this investment, you should consult companies and the markets for such securities may be 8 Fund fact cards This document contains information relating to the sub-funds your independent financial adviser. The investments described more volatile and less liquid. (‘Funds’) of Morgan Stanley SICAV, a Luxembourg Société in this document will not be suitable for all investors. 65 Fund codes d’Investissement à Capital Variable. Morgan Stanley SICAV is Recipients of this document should not treat the contents as 4) Securities of companies engaged in the real estate an Undertaking for Collective Investment in Transferable advice relating to legal, taxation or investment matters. industry; including the cyclical nature of real estate values, 70 Total returns by currency Securities (‘UCITS’) for the purpose of the Council Directive risks related to general and local economic conditions, EEC/85/611, as amended by Directive 2001/107/EC and by The overall performance of the following funds: European overbuilding and increased competition, increases in Directive 2001/108/EC of the European Parliament and of the Value Equity, European Property, Euro Bond, Euro Strategic property taxes and operating expenses, demographic 110 Fund manager biographies Council of 21 January 2002 (‘UCITS Directive’). Morgan Bond, European High Yield Bond and Short Maturity Euro trends and variations in rental income, changes in zonal Stanley SICAV is an umbrella Societe d'Investissement à Bond; is calculated in euro with performance prior to 1 laws, casualty or condemnation losses, environmental 122 Glossary Capital Variable authorised under Part 1 of the Law of 20 January 1999 restated in ECU. risks, regulatory limitations on rents, changes in December 2002. The company is a self managed SICAV in neighbourhood values, related party risks, changes in the accordance with article 27 of the law of 20 December 2002. The sources for all performance and index data are Morningstar appeal of properties to tenants, increases in interest rates 124 Contact your sales team Morgan Stanley Investment Management Limited will act as and Morgan Stanley Investment Management Limited. and other real estate capital market influences. Generally, Distributor of the shares of each fund. Morgan Stanley Calculations are NAV to NAV. Performance is quoted net of increases in interest rates will increase the costs of Investment Management Limited is a Sub-Adviser to advise on investment management fees and with income reinvested. obtaining financing, which could directly and indirectly such of the Funds as are agreed from time to time. Morgan Currency conversions by Morningstar for data after December decrease the value of the relevant Fund. Stanley Investment Management is not providing objective 1993 have been made according to the 4PM GMT WM Reuters investment advice. Spot Rate. Prior to the end of December 1993, the rate used 5) Investments in derivative instruments carries certain was the 4PM GMT NatWest Rate. All Fund performance is shown inherent risks such as the risk of counterparty default. The Funds have been authorised for sale pursuant to the since first full month after inception of Fund. Before investing you should ensure you fully understand aforementioned Directive in Austria, France, Germany, these risks. Use of leverage may also magnify losses as Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Risk warnings well as gains to the extent that leverage is employed. Sweden, Spain (CNMV No149) and the UK. In addition, the Past performance is not necessarily a guide to future Funds have been authorised for sale in Hong Kong, Norway performance and the value of the Shares and income from them Please refer to the Prospectus for full disclosure of the and Switzerland. In France, Morgan Stanley SICAV was may fall as well as rise. On redemption of Shares, an investor individual Fund aims. granted 'recognised' status by the Autorité des marchés may receive back an amount less than the original amount of his financiers (formerly the Commission des Opérations de investment. The assets of the funds will be in a variety of This financial promotion was issued and approved for use in Bourse) 29 December 1995. In Sweden, Morgan Stanley currencies and therefore movements in the value of currencies the UK to those persons who are professional clients or SICAV is registered with the Swedish Financial Supervisory may also affect the value of an investor’s holdings. Furthermore, eligible counterparties or intermediate customers (as defined Authority. In giving such authorisation, no regulatory authority the value of Shares may be adversely affected by fluctuations in in the UK Financial Services Authority's rules) by Morgan in any of the above jurisdictions takes responsibility for the exchange rates between the investor’s reference currencies and Stanley Investment Management Limited, 25 Cabot Square, financial soundness of the Funds or for the correctness of any the base currencies of the Funds. Canary Wharf, London E14 4QA, United Kingdom. This statements made or opinions expressed in this regard. There are special risk considerations associated with investing communication is only intended for and will be only distributed in: to persons resident in jurisdictions where such distribution or It is the responsibility of any persons in possession of this availability would not be contrary to local laws or regulations. document and any persons wishing to make application for 1) Emerging country securities; including (1) restrictions on Shares pursuant to the Prospectus to inform themselves of foreign investment and on repatriation of capital (2) Authorised and regulated by the Financial Services Authority. and to observe all applicable laws and regulations of any currency fluctuations, (3) potential price volatility and relevant jurisdictions. In certain jurisdictions, Shares may not lesser liquidity of shares, (4) political and economic risks, be available for purchase and the distribution of this brochure including the risk of nationalisation or expropriation of CN NWL Q 0308