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Money Market Fund
Update
October 29,
2008
As previously
communicated on September 30, 2008, Morgan Stanley Investment
Management applied for the U.S. Treasury’s Temporary Guarantee
Program for all of its SEC registered 2a-7 U.S. Money Market Funds.
As of October 29, 2008, the U.S. Treasury has indicated that the
application was approved and coverage effective for the funds listed
below. The U.S. Treasury is providing
responses on a fund by fund basis; therefore, as we receive updates
from the U.S. Treasury on Funds approved and covered, we will update
the list of funds. Details on the U.S. Treasury Temporary Guarantee
Program are as follows:
§
The
temporary guarantee program provides coverage to shareholders for
the number of shares that they held as of the close of business on
September 19, 2008.
§
Any
increase in the number of shares held in an account after the close
of business on September 19, 2008 will not be guaranteed. If a
customer closes their account with a fund or broker dealer, any
future investment in the fund will not be
guaranteed.
§
If the
number of shares held in an account fluctuates over the period, the
investor will be covered for either the number of shares held as of
the close of business on September 19, 2008 or the current amount,
whichever is less. A shareholder’s account whose balance may
fluctuate to zero will be covered.
§
The
Guarantee will be triggered if a participating fund’s net asset
value falls below $0.995, commonly referred to as breaking the
buck.
§
If a
guarantee event occurs in a covered fund, shareholders will be
covered and do not need to take any action. The U.S. Treasury
guarantees that payment will be made to investors through the
covered fund.
§
The
Program expires on December 18, 2008, unless extended by the U.S.
Treasury. The Secretary of the Treasury has the option to extend the
program up to the close of business on September 18,
2009.
For additional
information on the U.S. Treasury’s Temporary Guarantee Program,
please visit the
ICI website.
It is important to note
that our money market funds are separate, stand-alone investment
companies with independent boards of directors/trustees and assets
are held in separate segregated accounts for each Fund at an
independent custodian bank. Investments in our money market funds
remain separate from, and cannot be co-mingled with, the assets of
Morgan Stanley and its subsidiaries.
Morgan Stanley Investment
Management’s money market funds continue to function as designed by
maintaining a stable NAV of $1.00 per share and we remain committed
to meeting the Funds stated objectives of capital preservation and
liquidity.
U.S.
Treasury has indicated that the application was approved and
coverage effective for the funds listed
below:
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Morgan
Stanley Investment Advisor
Funds |
Status |
|
Active Assets CA
Tax-Free Trust |
Covered under
U.S. Treasury
Temporary Guarantee Program
|
|
Active Assets Government Securities
Trust |
Covered under
U.S. Treasury
Temporary Guarantee Program
|
|
Active Assets Institutional Government
Securities Trust |
Covered under
U.S. Treasury
Temporary Guarantee Program
|
|
Active Assets Institutional Money
Trust |
Covered under
U.S. Treasury
Temporary Guarantee Program |
|
Active Assets Money
Trust |
Covered under
U.S. Treasury
Temporary Guarantee Program
|
|
Active Assets Tax-Free
Trust |
Covered under
U.S. Treasury
Temporary Guarantee Program
|
|
California Tax-Free Daily
Income Trust |
Application Filed
with the U.S.
Treasury |
|
Liquid Asset Fund,
Inc. |
Application Filed
with the U.S.
Treasury |
|
New
York
Municipal Money Market Trust |
Application Filed
with the U.S.
Treasury |
|
Active Assets
Institutional Money Trust |
Application Filed
with the U.S.
Treasury |
|
Tax-Free Daily
Income Trust |
Application Filed
with the U.S.
Treasury |
|
US Government Money
Market Trust |
Application Filed
with the U.S.
Treasury |
|
Select Dimensions
Investment Series
Money Market
Portfolio |
Application Filed
with the U.S.
Treasury |
|
Variable Investment
Series
Money Market Portfolio
|
Application Filed with the
U.S.
Treasury |
|
Morgan
Stanley Institutional Liquidity
Funds |
Status |
|
Money Market
Portfolio |
Covered under
U.S. Treasury
Temporary Guarantee Program
|
|
Prime
Portfolio |
Covered under
U.S. Treasury
Temporary Guarantee Program
|
|
Government
Portfolio |
Covered under
U.S. Treasury
Temporary Guarantee Program
|
|
Government Securities
Portfolio |
Covered under
U.S. Treasury
Temporary Guarantee Program |
|
Treasury
Portfolio |
Covered under
U.S. Treasury
Temporary Guarantee Program
|
|
Tax-Exempt
Portfolio |
Covered under
U.S. Treasury
Temporary Guarantee Program
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If you have any
questions, please do not hesitate to call us at 1-800-236-0992.
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