UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 14A

(Rule 14a-101)

INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A
INFORMATION

Proxy Statement Pursuant to Section 14(a) of
the Securities
Exchange Act of 1934 (Amendment No.     )

Filed by the Registrant [X]

Filed by a Party other than the Registrant [    ]

Filed by the Registrant  x

Filed by a Party other than the Registranto

Check the appropriate box: [    ]  x Preliminary Proxy Statement [    ]  o Confidential, Forfor Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) [X]  o Definitive Proxy Statement [    ]  o Definitive Additional Materials [    ]  o Soliciting Material Pursuant to § 240.14a-12 ACTIVE ASSETS CALIFORNIA TAX-FREE TRUST ACTIVE ASSETS GOVERNMENT SECURITIES TRUST ACTIVE ASSETS INSTITUTIONAL GOVERNMENT SECURITIES TRUST ACTIVE ASSETS INSTITUTIONAL MONEY TRUST ACTIVE ASSETS MONEY TRUST ACTIVE ASSETS TAX-FREE TRUST MORGAN STANLEY CALIFORNIA TAX-FREE DAILY INCOME TRUST MORGAN STANLEY LIQUID ASSET FUND INC. MORGAN STANLEY NEW YORK MUNICIPAL MONEY MARKET TRUST MORGAN STANLEY TAX-FREE DAILY INCOME TRUST MORGAN STANLEY U.S. GOVERNMENT MONEY MARKET TRUSTunder §240.14a-12 (Names of Registrants as Specified in Their Charters) MORGAN STANLEY NEW YORK MUNICIPAL MONEY MARKET TRUST (Name of Registrant as Specified In Its Charter) (Name of Person(s) Filing Proxy Statement, if Other Than

(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

Payment of Filing Fee (Check the appropriate box): [X]  x No fee required. [    ]  o Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. 1)  (1) Title of each class of securities to which transaction applies: ______________________ 2)  (2) Aggregate number of securities to which transaction applies: ______________________ 3)  (3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined): ______________________ 4)  (4) Proposed maximum aggregate value of transaction: ______________________ 5)  (5) Total fee paid: ______________________ [    ]  o Fee paid previously with preliminary materials. [    ]  o Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by the registration statement number, or the Form or Schedule and the date of its filing. 1)  (1) Amount Previously Paid: ______________________ 2)  (2) Form, Schedule or Registration Statement No.: ______________________ (3) Filing Party: (4) Date Filed: 3)  Filing Party: ______________________ 4)  Date Filed: ______________________ ACTIVE ASSETS CALIFORNIA TAX-FREE TRUST ACTIVE ASSETS GOVERNMENT SECURITIES TRUST ACTIVE ASSETS INSTITUTIONAL GOVERNMENT SECURITIES TRUST ACTIVE ASSETS INSTITUTIONAL MONEY TRUST ACTIVE ASSETS MONEY TRUST ACTIVE ASSETS TAX-FREE TRUST MORGAN STANLEY CALIFORNIA TAX-FREE DAILY INCOME TRUST MORGAN STANLEY LIQUID ASSET FUND INC. MORGAN STANLEY NEW YORK MUNICIPAL MONEY MARKET TRUST MORGAN STANLEY TAX-FREE DAILY INCOME TRUST MORGAN STANLEY U.S. GOVERNMENT MONEY MARKET TRUST c/o Morgan Stanley Investment AdvisorsManagement Inc. 1221522 Fifth Avenue, of the Americas New York, New York 1002010036 Toll Free [  ] NOTICE OF SPECIAL MEETINGSMEETING OF SHAREHOLDERS SEPTEMBER 10, 2020 To Our Shareholders:the Shareholders of Morgan Stanley New York Municipal Money Market Trust: Notice is hereby given thatof a Special Meeting of Shareholders (the “Meeting”) of each of the Morgan Stanley Funds listed above (each a ‘‘Fund’’ and collectively, the ‘‘Funds’’New York Municipal Money Market Trust (the “Fund”) willto be held on Tuesday, August 1, 2006,September 10, 2020 at 9:00 a.m., at the offices of the investment adviser for the Fund, Morgan Stanley Investment AdvisorsManagement Inc. (the “Adviser”), 1221 Avenue of the Americas,[Conference Room [  ], 3rd Floor, 522 Fifth Avenue, New York, New York 10020 at 8:30 a.m.NY 10036], Eastern Time. For sake of clarity, each Fund’s name has been abbreviated as set forth in Exhibit A to this Joint Proxy Statement.and any adjournments or postponements thereof. The Meetings areMeeting is being held for the following purposes: 1.  To elect Trustees/Directors of the Funds. 2.  To eliminate certain fundamental investment restrictions for all Funds. 3.  To modify certain fundamental investment restrictions for all Funds. 4.  To reclassify certain fundamental policies as non-fundamental policies for all Funds, except the Active Assets Institutional Government Securities Trust and Active Assets Institutional Money Trust. 5.  To consider and act upon any other business as may properly come before the Meetings or any adjournment thereof. 1.     To consider and act upon a proposal to liquidate the Fund pursuant to the Plan of Liquidation adopted by the Board of Trustees of the Fund (the “Proposal”). 2.     To consider and act upon any other business as may properly come before the Meeting. Only shareholdersholders of record of a particularshares of the Fund atas of the close of business on May 30, 2006,July 1, 2020, the record date for the Meetings,Meeting (the “Record Date”), are entitled to notice of, and to vote at, the Meeting of that Fund or any adjournments or postponements thereof. MARY E. MULLIN Secretary MARY E. MULLIN Secretary Dated: June 14, 2006[  ], 2020 You can help avoid the necessity and expense of sending follow-up letters to ensure a quorum by promptly returning the enclosed Proxy Card. If you do not expectare unable to attend the Meeting(s) for your Fund(s),be present in person, please fill in, sign and promptly return the enclosed Proxy Card(s)Card in order that the necessary quorum may be represented at the Meeting. The enclosed envelope requires no postage if mailed in the enclosed self-addressed envelope orUnited States. Shareholders will be able to vote telephonically by touchtone telephone or electronically on the Internet by following instructions contained on their Proxy Card or on the enclosed Voting Information Card. IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE SPECIAL MEETING OF SHAREHOLDERS TO BE HELD ON SEPTEMBER 10, 2020: The Proxy Statement for the Special Meeting of Shareholders is available on the Internet at the website address located on the enclosed Proxy Card. We intend to hold the Meeting in person; however, we are actively monitoring the difficulties arising from the coronavirus (COVID-19) and as indicateda result, the date, time, location or means of conducting the Meeting may change. Please refer to the Proxy Statement for additional information. The Adviser believes that the liquidation of the Fund is in the Proxy Card(s).best interests of the Fund and its Shareholders. In order to avoidfacilitate the additional expenseliquidation of the Fund, the Adviser or its affiliates will purchase shares of the Fund before the Record Date in an amount in excess of 50% of the Fund’s outstanding shares. The Adviser or its affiliates intend to vote those shares “FOR” the FundsProposal. Such share ownership and associated voting intentions create potential conflicts of further solicitation, we ask your prompt cooperation in mailing in your Proxy Card(s) or voting by telephone or electronically on the Internet.interest. THE MORGAN STANLEY NEW YORK MUNICIPAL MONEY MARKET FUNDS TRUST c/o Morgan Stanley Investment AdvisorsManagement Inc. 1221522 Fifth Avenue, of the Americas New York, New York 1002010036 JOINT PROXY STATEMENT Special MeetingsMeeting of Shareholders August 1, 2006September 10, 2020 This statementProxy Statement is furnished by the Board of Trustees/Directors (each a ‘‘Board’’ and collectively,Trustees (the “Board,” the ‘‘Boards’’trustees of which are referred to as the “Trustees”) of each of the Morgan Stanley New York Municipal Money Market Funds listed in the accompanying Notice of Special Meetings of Shareholders (each a ‘‘Fund’’ and collectively, the ‘‘Funds’’Trust (the “Fund”) in connection with the solicitation of Proxiesproxies (separately referred to as a “Proxy” and collectively referred to as “Proxies”) by the Board for use at athe Special Meeting of Shareholders (the “Meeting”) of each Fund (each a ‘‘Meeting’’ and collectively, the ‘‘Meetings’’)Morgan Stanley New York Municipal Money Market Trust to be held on Tuesday, August 1, 2006,September 10, 2020 at 9:00 a.m., at the principal executive officeoffices of the investment adviser for eachthe Fund, Morgan Stanley Investment AdvisorsManagement Inc. (hereinafter ‘‘MSIA’’ or the ‘‘Investment Adviser’’(the “Adviser”), 1221522 Fifth Avenue, of the Americas,[Conference Room [  ], 3rd Floor, New York, New York 10020.NY 10036]. It is expected that the Notice of Special Meetings, JointMeeting of Shareholders, Proxy Statement and Proxy Card(s)Card will first be mailed to shareholders of the Fund (each, a “Shareholder” and collectively, the “Shareholders”) on or about June 14, 2006.July 22, 2020. The purpose of the Meetings,Meeting, the matters to be acted upon and the commencement time of eachthe Meeting are set forth in the accompanying Notice of Special MeetingsMeeting of Shareholders. Each Fund is organized either as a Maryland corporation or a Massachusetts business trust. In each jurisdiction, nomenclature varies. For ease and clarity of presentation, shares of common stock or shares of beneficial interest of a Fund are referred to as ‘‘shares,’’ all holders of shares are referred to as ‘‘Shareholders,’’ the Board of Directors or the Board of Trustees of each of the Funds is referred to as the ‘‘Board,’’ the directors or trustees of each Fund are referred to as ‘‘Trustees,’’ the investment adviser of each Fund is referred to as the ‘‘Investment Adviser’’ and each Fund’s Articles of Incorporation or Declaration of Trust is referred to as its ‘‘charter.’’ If the accompanying Proxy Card for a Fund is executed properly and returned, shares represented by itAll valid Proxies will be voted at the Meeting for that Fund in accordance with specifications thereon, or in the instructions onabsence of specifications, “FOR” approval of the Proxy Card.proposal to liquidate the Fund pursuant to the plan of liquidation of the Fund (the “Plan of Liquidation”) (the “Proposal”). A Proxy may be revoked at any time prior to the time it is votedvoting of the shares of beneficial interest of the Fund (the “Shares”) represented thereby by: (i) bymailing written noticeinstructions addressed to the Secretary of the Fund, 1633 Broadway, New York, New York 10019; (ii) signing and returning a new proxy (if returned and received in time to be voted); or (ii) by attendance(iii) attending the Meeting and voting Shares. Attendance at the Meeting will not in and of itself revoke a proxy. In order to revoke a proxy in person at the Meeting, Shareholders must either submit a subsequent proxy or vote in person and request that their proxy be revoked. Shareholders whose Shares are held in street name by a broker of record and who wish to vote in person at the Meeting must obtain a legal proxy from their broker and present it at the Meeting to the inspector of elections. The Fund may deliver only one Proxy Statement to multiple Shareholders sharing an address, unless the Fund has received contrary instructions. The Fund will furnish, upon written or oral request, a separate copy of the Proxy Statement to a Shareholder at a shared address to which a single Proxy Statement was delivered. Requests for a separate Proxy Statement, and notifications to the Fund that a Shareholder wishes to receive separate copies in the future, should be made in writing to the Fund, c/o Morgan Stanley Client Relations, Attn: Morgan Stanley New York Municipal Money Market Trust, 1633 Broadway, New York, New York 10019, or by calling toll-free [  ]. Multiple Shareholders sharing an address and receiving multiple copies of periodic reports and proxy statements may request to receive only one copy of such Fund. If no instructions are specified,reports and proxy statements by calling toll-free [  ]. The Fund suspended the offering of its shares will be voted FOR each Proposal applicable to that Fund.all investors at the close of business on June 30, 2020. Please refer to the supplement to the Fund’s prospectus dated June 18, 2020 for more information. The Board has fixed the close of business on May 30, 2006July 1, 2020 as the record date (the “Record Date”) for the determination of Shareholders entitled to notice of, and to vote at, the MeetingsMeeting and at any adjournments or postponements thereof. See Exhibit A for information relatingEach full Share will be entitled to one vote at the Meeting, and each fraction of a Share will be entitled to the numberfraction of sharesone vote equal to the proportion of eacha full Share represented by the fractional Share. As of the Record Date, the Fund had [  ] Shares outstanding and entitled to vote. The Adviser believes that the liquidation of the Fund is in the best interests of the Fund and its Shareholders. In order to facilitate the liquidation of the Fund, the Adviser or its affiliates will purchase shares of the Fund before the Record Date in an amount in excess of 50% of the Fund’s outstanding Shares. The Adviser or its affiliates intend to vote those shares “FOR” the Proposal. Such share ownership and associated voting intentions create potential conflicts of interest. The cost of soliciting proxiesProxies for the Meeting, of each Fund, consisting principally ofincluding estimated outside counsel, supplement, printing, mailing and mailingproxy solicitation expenses, is estimated at $13,045,643expected to be approximately $85,000 and will be borne pro rata by each respective Fund based on its relative net assets.the Fund. The solicitation of proxiesProxies will be by mail, which may be supplemented by solicitation by mail, telephone or otherwise 1 through Trustees, officers of the Funds,Fund or officers and regular employees of the Investment Adviser Morgan Stanley Trust, Morgan Stanley Services Company Inc. and/or Morgan Stanley DW Inc.,its affiliates, without special compensation therefor. In addition, eachThe transfer agent services for the Fund may employ Computershare Fund Services,are currently provided by DST Asset Manager Solutions, Inc. (‘‘Computershare’’) to make telephone calls to Shareholders to remind them to vote. The Fund may also employ Computershare as proxy solicitor if it appears that the required number of votes to achieve a quorum will not be received. Shareholders will be able to authorize Proxies to vote their shares by touchtone telephone or by InternetShares by following the instructions on the Proxy Card accompanying this Joint Proxy Statement. To vote by touchtone telephone or by Internet, Shareholders can access the website or call the toll-free number listed on the Proxy Card or noted in the enclosed voting instructions. To vote by touchtone telephone or by Internet, Shareholders will need the number that appears on the Proxy Card in the shaded box. In certain instances, Morgan Stanley Trust or Computershare may call Shareholders to ask if they would be willing to have their votes recorded by telephone. The telephone voting procedure is designed to authenticate Shareholders’ identities, to allow Shareholders to authorize the voting of their shares in accordance with their instructions and to confirm that their instructions have been recorded properly. No recommendation will be made as to how a Shareholder should vote on any Proposal other than to refer to the recommendations of the Board. The Funds have been advised by counsel that these procedures are consistent with the requirements of applicable law. Shareholders voting by telephone in this manner will be asked identifying information and will be given an opportunity to authorize proxies to vote their shares in accordance with their instructions. To ensure that the Shareholders’ instructions have been recorded correctly, they will receive a confirmation of their instructions in the mail. A special toll-free number set forth in the confirmation will be available in case the information contained in the confirmation is incorrect. Although a Shareholder’s vote may be taken by telephone, each Shareholder will receive a copy of this Joint Proxy Statement and may vote by mail using the enclosed Proxy Card or by touchtone telephone or the Internet as set forth above. The last proxy vote received in time to be voted, whether by Proxy Card, touchtone telephone or Internet, will be the vote that is counted and will revoke all previous votes by the Shareholder. With respect to these services, Computershare will be paid a project management fee as well as telephone solicitation expenses incurred for reminder calls, outbound telephone voting, confirmation of telephone votes, inbound telephone contact, obtaining Shareholders’ telephone numbers, and providing additional materials upon Shareholder request, at an estimated cost of $3,037,874, which would be borne by the Funds. EachThe Fund will furnish, without charge, a copy of its most recentthe Fund’s annual report orfor its fiscal year ended December 31, 2019 and a copy of the Fund’s semi-annual report for the period ended June 30, 2020, once available, to any Shareholder of suchthe Fund requesting such report. Requests for the Fund’s annual report and/or semi-annual reportsreport should be made in writing to the respective Fund c/o Nina Wessel at Morgan Stanley Services CompanyInvestment Management Inc., Harborside Financial Center, Plaza Two, 2nd Floor, Jersey City,522 Fifth Avenue, New Jersey 07311,York, NY 10036, by calling 1-800-869-NEWS,toll-free [  ] or by visiting the Investment Adviser’s Internet website at www.morganstanley.com/funds.im. Morgan Stanley Services CompanyInvestment Management Inc. serves as the Funds’Fund’s administrator (the ‘‘Administrator’’). Morgan Stanley Distributors Inc. serves as each Fund’s distributor (the ‘‘Distributor’’).and investment adviser. The business address of Morgan Stanley Investment Management Inc. is 522 Fifth Avenue, New York, NY 10036. State Street Bank and Trust Company serves as sub-administrator to the AdministratorFund. The business address of State Street Bank and Trust Company is One Lincoln Street, Boston, MA 02111-2101. We are sensitive to the health and travel concerns of the Fund’s Shareholders and the Distributor is 1221 Avenueevolving recommendations from public health officials. Due to the difficulties arising from the coronavirus known as COVID-19, the date, time, location or means of conducting the Meeting may change. In the event of such a change, the Fund will file the announcement on the Securities and Exchange Commission’s (“SEC”) EDGAR system, among other steps, but may not deliver additional soliciting materials to Shareholders or otherwise amend the Fund’s proxy materials. Although no decision has been made, the Fund may consider imposing additional procedures or limitations on Meeting attendees or conducting the Meeting as a “virtual” Shareholder meeting through the internet or other electronic or telephonic means in lieu of an in-person meeting, subject to any restrictions imposed by applicable law. If the Meeting will be held virtually in whole or in part, the Fund will notify its Shareholders of such plans in a timely manner and disclose clear directions as to the logistical details of the Americas, New York, New York 10020. This Joint Proxy Statement is being used“virtual” meeting, including how Shareholders can remotely access, participate in orderand vote at such meeting. The Fund plans to reduce the preparation, printing, handlingannounce these changes, if any, at www.morganstanley.com/im and postage expenses that would result from the use of a separate proxy statement for each Fund. Shares of a Fund are entitledencourages you to one vote each at the respective Fund’s Meeting and each fraction of a share will be entitledcheck this website prior to the fraction of a vote equalMeeting if you plan to the proportion of a full share represented by the fractional share. To the extent information relating to common ownership is available to the Funds, a Shareholder that owns record shares in two or more of the Funds will receive a package containing a Joint Proxy Statement and Proxy Card(s) for the Funds in which such Shareholder is a record owner. If the information relating to common ownership is not available to the Funds, a Shareholder that beneficially owns shares in two or more Funds may receive two or more packages each containing a Joint Proxy Statement and Proxy Card(s) for those Funds in which such Shareholder is a beneficial owner. If a Proposal is approved by Shareholders of one Fund and disapproved by Shareholders of other Funds, the Proposal will be implemented for the Fund that approved the Proposal and will not be implemented for any Fund that did not approve the Proposal. Thus, it is essential that Shareholders complete, date, sign and return the enclosed Proxy Card(s) or vote by telephone as indicated on the Fund’s Proxy Card(s).attend. The Shareholders are being solicited and are entitled to vote on Proposals 1, 2, 3 and 4, which are outlined as follows: Proposal 1 For all Funds To elect Trustees of the Funds Proposal 2 For all Funds To eliminate certain fundamental investment restrictions Proposal 3 For all Funds To modify certain fundamental investment restrictions Proposal 4 For all Funds except the Active Assets Institutional Government Securities Trust and Active Assets Institutional Money Trust To reclassify certain fundamental policies as non-fundamental policies Under each Fund’s By-Laws, the presence at a meeting in person or by proxy of Shareholders entitled to cast a majority of the votes entitled to be cast thereat shall constitute a quorum. For this purpose, abstentions and broker ‘‘non-votes’’ will be counted in determining whether a quorum is present at the Meeting, but will not be counted as votes cast at the Meeting. At a meeting held on April 25, 2006, theThe Board of each Fund determined that it was in the best interestTrustees of the Fund to approve each Proposal. After careful consideration, the Board approved the submission of each Proposal to Shareholders of each Fund for their approval. The Board of each Fund unanimously recommends that you cast your vote ‘‘FOR’’ each Proposal set forth in this Joint Proxy Statement as follows:“FOR” the Proposal. •  The election of all of the nominees as Trustees as set forth in Proposal No. 1. •  The elimination of certain of the Funds’ fundamental policies as set forth in Proposal No. 2. •  The modification of certain of the Funds’ fundamental policies as set forth in Proposal 3.     •  The reclassification of certain of the Funds’ fundamental policies as non-fundamental policies as set forth in Proposal 4.     Your vote is important. Please return your Proxy Card promptly no matter how many sharesShares you own. PROPOSAL 1 — ELECTION PROPOSAL: LIQUIDATION OF TRUSTEES Applicable Funds: All FundsTHE FUND Introduction At a meeting held on June 16, 2020, the Meetings, Shareholders will be asked to considerBoard unanimously approved the election of Trustees to hold office until their successors are duly elected and qualified. It is the intention of the persons named in the accompanying Proxy Cards to vote, on behalf of the Shareholders, for the election of Frank L. Bowman, Kathleen A. Dennis, James F. Higgins, Joseph J. Kearns, Michael F. Klein, W. Allen Reed and Fergus Reid as Trustees for an indefinite term commencing on August 1, 2006, for all Funds. Pursuant to each Fund’s By-Laws, each Trustee holds office until (i) his or her successor has been elected and qualified, (ii) his or her death, (iii) his or her resignation or (iv) his or her removal as provided by statute or the charter. Information Regarding Trustees and Nominee Trustees Certain information regarding the incumbent Trustees of the Funds and nominees for election as Trustees is set forth below: Name, Address and Age Position(s) Held with Funds Length of Time Served* Principal Occupation(s) During Past Five Years Number of Portfolios in Fund Complex Overseen by Trustee or Nominee for Trustee Other Directorships Held by Trustee or Nominee for Trustee Interested Nominee for Trustee James F. Higgins** (58) c/o Morgan Stanley Trust Harborside Financial Center, Plaza Two, Jersey City, NJ 07311 Nominee/ Trustee Since June 2000 or since Inception Date Director or Trustee of the funds advised by MSIA (the “Retail Funds”) (since June 2000) and various U.S. registered investment companies managed by Morgan Stanley Investment Management Inc. (the “Institutional Funds”) (since July 2003); Senior Advisor of Morgan Stanley (since August 2000); Director of Dean Witter Realty Inc. 187 Director of AXA Financial, Inc. and The Equitable Life Assurance Society of the United States (financial services). Interested Incumbent Trustee Charles A. Fiumefreddo** (73) c/o Morgan Stanley Trust Harborside Financial Center, Plaza Two, Jersey City, NJ 07311 Trustee and Chairman of the Board Since July 1991 or since Inception Date Chairman and Director or Trustee of the Retail Funds (since July 1991) and the Institutional Funds (since July 2003); formerly Chief Executive Officer of the Retail Funds (until September 2002). 187 None. Name, Address and Age Position Held with Funds Length of Time Served Principal Occupation(s) During Past Five Years Number of Portfolios in Fund Complex Overseen by Trustee or Nominee for Trustee Other Directorships Held by Trustee or Nominee for Trustee Independent Nominees for Trustee Frank L. Bowman (61) c/o Kramer Levin Naftalis & Frankel LLP Counsel to the Independent Trustees 1177 Avenue of the Americas New York, NY 10036 Nominee N/A President and Chief Executive Officer of the Nuclear Energy Institute (since February 2005) (policy organization); formerly variously, Admiral in the U.S. Navy, Director of Naval Nuclear Propulsion Program and Deputy Administrator — Naval Reactors in the National Nuclear Security Administration at the U.S. Department of Energy (1996-2004), Honorary Knight Commander of the Most Excellent Order of the British Empire. 187 Director of the National Energy Foundation, the U.S. Energy Association, the American Council for Capital Formation and the Armed Services YMCA of the USA. Kathleen A. Dennis (52) c/o Kramer Levin Naftalis & Frankel LLP Counsel to the Independent Trustees 1177 Avenue of the Americas New York, NY 10036 Nominee N/A President, Cedarwood Associates (since 2006) (mutual fund consulting); formerly, Senior Managing Director of Victory Capital Management (1993-2006). 187 None. Joseph J. Kearns (63) c/o Kearns & Associates LLC PMB 754 23852 Pacific Coast Highway Malibu, CA 90265 Nominee/ Trustee Since July 2003 or since Inception Date President, Kearns & Associates LLC (investment consulting); Deputy Chairman of the Audit Committee and Director or Trustee of the Retail Funds (since July 2003) and the Institutional Funds (since August 1994); previously Chairman of the Audit Committee of the Institutional Funds (October 2001 – July 2003); formerly Chief Financial Officer of the J. Paul Getty Trust. 188 Director of Electro Rent Corporation (equipment leasing), The Ford Family Foundation and the UCLA Foundation. Name, Address and Age Position Held with Funds Length of Time Served Principal Occupation(s) During Past Five Years Number of Portfolios in Fund Complex Overseen by Trustee or Nominee for Trustee Other Directorships Held by Trustee or Nominee for Trustee Independent Nominees for Trustee Michael F. Klein (47) c/o Kramer Levin Naftalis & Frankel LLP Counsel to the Independent Trustees 1177 Avenue of the Americas New York, NY 10036 Nominee N/A Chief Operating Officer and Managing Director, Aetos Capital, LLC (since March 2000); Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, Morgan Stanley Institutional Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management, (August 1997 – December 1999). 187 Director of certain investment funds managed or sponsored by Aetos Capital LLC. W. Allen Reed (60) c/o Kramer Levin Naftalis & Frankel LLP Counsel to the Independent Trustees 1177 Avenue of the Americas New York, NY 10036 Nominee N/A President and CEO of General Motors Asset Management, Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994 – December 2005). 187 Director of GMAC (financial services), GMAC Insurance Holdings, iShares, Inc. (Exchange Traded Funds), and Temple- Inland Industries (Packaging, Banking and Forrest Products); member of the Board of Executives of the New York Stock Exchange, the Investment Advisory Committee for the New York State Retirement System and the Morgan Stanley Capital International Editorial Board; Director of various investment fund advisory boards. Name, Address and Age Position Held with Funds Length of Time Served Principal Occupation(s) During Past Five Years Number of Portfolios in Fund Complex Overseen by Trustee or Nominee for Trustee Other Directorships Held by Trustee or Nominee for Trustee Independent Nominees for Trustee Fergus Reid (73) c/o Lumelite Plastics Corporation 85 Charles Colman Boulevard Pawling, NY 12564 Since July 2003 or since Inception Date Chairman of Lumelite Plastics Corporation; Chairman of the Governance Committee and Director or Trustee of the Retail Funds (since July 2003) and the Institutional Funds (since June 1992). 188 Trustee and Director of certain investment companies in the JPMorgan Funds complex managed by J.P. Morgan Investment Management Inc. Independent Incumbent Trustees Michael Bozic (65) c/o Kramer Levin Naftalis & Frankel LLP Counsel to the Independent Trustees 1177 Avenue of the Americas New York, NY 10036 Trustee Since April 2004 or since Inception Date Private investor; Director or Trustee of the Retail Funds (since April 1994) and the Institutional Funds (since July 2003); formerly Vice Chairman of Kmart Corporation (December 1998 – October 2000), Chairman and Chief Executive Officer of Levitz Furniture Corporation (November 1995 – November 1998) and President and Chief Executive Officer of Hills Department Stores (May 1991 – July 1995); formerly variously Chairman, Chief Executive Officer, President and Chief Operating Officer (1987 – 1991) of the Sears Merchandise Group of Sears, Roebuck & Co. 187 Director of various business organizations. Name, Address and Age Position Held with Funds Length of Time Served Principal Occupation(s) During Past Five Years Number of Portfolios in Fund Complex Overseen by Trustee or Nominee for Trustee Other Directorships Held by Trustee or Nominee for Trustee Independent Incumbent Trustees Edwin J. Garn (73) 1031 North Chartwell Court Salt Lake City, UT 84103 Trustee Since January 1993 or since Inception Date Consultant; Director or Trustee of the Retail Funds (since January 1993) and the Institutional Funds (since July 2003); member of the Utah Regional Advisory Board of Pacific Corp. (utility company); formerly Managing Director of Summit Ventures LLC (lobbying and consulting firm) (2000 – 2004); United States Senator (R-Utah) (1974 – 1992) and Chairman, Senate Banking Committee (1980 – 1986), Mayor of Salt Lake City, Utah (1971 – 1974), Astronaut, Space Shuttle Discovery (April 12 – 19, 1985), and Vice Chairman, Huntsman Corporation (chemical company). 187 Director of Franklin Covey (time management systems), BMW Bank of North America, Inc. (industrial loan corporation), Escrow Bank USA (industrial loan corporation), United Space Alliance (joint venture between Lockheed Martin and the Boeing Company) and Nuskin Asia Pacific (multilevel marketing); member of the board of various civic and charitable organizations. Wayne E. Hedien (72) c/o Kramer Levin Naftalis & Frankel LLP Counsel to the Independent Trustees 1177 Avenue of the Americas New York, NY 10036 Trustee Since September 1997 or since Inception Date Retired; Director or Trustee of the Retail Funds (since September 1997) and the Institutional Funds (since July 2003); formerly associated with the Allstate Companies (1966 – 1994), most recently as Chairman of The Allstate Corporation (March 1993 – December 1994) and Chairman and Chief Executive Officer of its wholly owned subsidiary, Allstate Insurance Company (July 1989 – December 1994). 187 Director of The PMI Group Inc. (private mortgage insurance); Trustee and Vice Chairman of The Field Museum of Natural History; Director of various other business and charitable organizations. Name, Address and Age Position Held with Funds Length of Time Served Principal Occupation(s) During Past Five Years Number of Portfolios in Fund Complex Overseen by Trustee or Nominee for Trustee Other Directorships Held by Trustee or Nominee for Trustee Independent Incumbent Trustees Dr. Manuel H. Johnson (57) c/o Johnson Smick Group Inc. 888 16th Street, N.W. Suite 740 Washington, D.C. 20006 Trustee Since July 1991 or since Inception Date Senior Partner, Johnson Smick International, Inc., a consulting firm; Chairman of the Audit Committee and Director or Trustee of the Retail Funds (since July 1991) and the Institutional Funds (since July 2003); Co-Chairman and a founder of the Group of Seven Council (G7C), an international economic commission; formerly Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. 187 Director of NVR, Inc. (home construction); Director of KFX Energy; Director of RBS Greenwich Capital Holdings (financial holding company). Michael E. Nugent (70) c/o Triumph Capital, L.P. 445 Park Avenue New York, NY 10022 Trustee Since July 1991 or since Inception Date General Partner of Triumph Capital, L.P., a private investment partnership; Chairman of the Insurance Committee and Director or Trustee of the Retail Funds (since July 1991) and the Institutional Funds (since July 2001); formerly Vice President, Bankers Trust Company and BT Capital Corporation (1984 – 1988). 187 None. * Each Trustee has served in such capacity since the earlier of the date listed or the Inception Date of the Fund as listed in Exhibit A. ** ‘‘Interested person’’ of the Fund within the meaning of the Investment Company Act of 1940, as amended (the ‘‘Investment Company Act’’). Mr. Fiumefreddo is the former Chairman, Chief Executive Officer and Director of Morgan Stanley Investment Advisors Inc., which is the investment adviser of the Retail Funds. Mr. Higgins is Senior Advisor to Morgan Stanley, of which the Investment Adviser is a subsidiary. No Trustee or nominee for election as Trustee who is not an interested personliquidation of the Fund or any immediate family member of such person, owns securities in the Investment Adviser, or a person directly or indirectly controlling, controlled by, or under common control with the Investment Adviser. Certain information regarding the executive officers of the Funds is set forth below: Name, Address and Age Position(s) Held with the Funds, and Length of Time Served Principal Occupation(s) During Past Five Years Ronald E. Robison* (67) 1221 Avenue of the Americas New York, NY 10020 President since September 2005 and Principal Executive Officer since May 2003 or since Inception Date President (since September 2005) and Principal Executive Officer (since May 2003) of funds in the Fund Complex; President (since September 2005) and Principal Executive Officer (since May 2003) of the Van Kampen Funds; Managing Director, Director and/or Officer of the Investment Adviser and various entities affiliated with the Investment Adviser; Director of Morgan Stanley SICAV (since May 2004). Formerly, Executive Vice President (July 2003 to September 2005) of funds in the Fund Complex and the Van Kampen Funds; President and Director of the Institutional Funds (March 2001 to July 2003); Chief Global Operating Officer of Morgan Stanley Investment Management Inc.; Chief Administrative Officer of the Investment Adviser; Chief Administrative Officer of Morgan Stanley Services Company Inc. J. David Germany* (51) Morgan Stanley Investment Management Ltd. 25 Cabot Square Canary Wharf London, United Kingdom E144QA Vice President since February 2006 or since Inception Date Managing Director and (since December 2005) Chief Investment Officer—Global Fixed Income of Morgan Stanley Investment Management; Managing Director and Director of Morgan Stanley Investment Management Ltd.; Vice President (since February 2006) of the Retail Funds and the Institutional Funds. Dennis F. Shea* (53) 1221 Avenue of the Americas New York, NY 10020 Vice President since February 2006 or since Inception Date Managing Director and (since February 2006) Chief Investment Officer—Global Equity of Morgan Stanley Investment Management; Vice President (since February 2006) of the Retail Funds and the Institutional Funds. Formerly, Managing Director and Director of Global Equity Research at Morgan Stanley. Barry Fink* (51) 1221 Avenue of the Americas New York, NY 10020 Vice President since February 1997 or since Inception Date Managing Director and General Counsel of Morgan Stanley Investment Management, Managing Director of the Investment Adviser and various entities affiliated with the Investment Adviser; Vice President of the Retail Funds and (since July 2003) the Institutional Funds. Formerly, Secretary, General Counsel and/or Director of the Investment Adviser and various entities affiliated with the Investment Adviser; Secretary and General Counsel of the Retail Funds. Amy R. Doberman* (44) 1221 Avenue of the Americas New York, NY 10020 Vice President since July 2004 or since Inception Date Managing Director and General Counsel, U.S. Investment Management of Morgan Stanley Investment Management (since July 2004); Vice President of the Retail Funds and the Institutional Funds (since July 2004); Vice President of the Van Kampen Funds (since August 2004); Secretary (since February 2006) and Managing Director (since July 2004) of the Investment Adviser and various entities affiliated with the Investment Adviser. Formerly, Managing Director and General Counsel—Americas, UBS Global Asset Management (July 2000 to July 2004). Carsten Otto* (42) 1221 Avenue of the Americas New York, NY 10020 Chief Compliance Officer since October 2004 or since Inception Date Managing Director and U.S. Director of Compliance for Morgan Stanley Investment Management (since October 2004); Managing Director and Chief Compliance Officer of Morgan Stanley Investment Management. Formerly, Assistant Secretary and Assistant General Counsel of the Retail Funds. * ‘‘Interested person’’ of the Funds within the meaning of the Investment Company Act. Messrs. Robison, Germany, Shea, Fink, Otto and Smith, and Ms. Doberman, Chang Yu and Mullin are also officers of the Investment Adviser or its affiliates. Name, Address and Age Position(s) Held with the Funds, and Length of Time Served Principal Occupation(s) During Past Five Years Stefanie V. Chang Yu* (39) 1221 Avenue of the Americas New York, NY 10020 Vice President since July 2003 or since Inception Date Executive Director of the Investment Adviser and various entities affiliated with the Investment Adviser; Vice President of the Retail Funds (since July 2002) and the Institutional Funds (since December 1997). Formerly, Secretary of various entities affiliated with the Investment Adviser. Francis J. Smith* (40) c/o Morgan Stanley Trust Harborside Financial Center, Plaza Two, Jersey City, NJ 07311 Treasurer since July 2003 and Chief Financial Officer since September 2002 or since Inception Date Executive Director of the Investment Adviser and Morgan Stanley Services Company Inc.; Treasurer and Chief Financial Officer of the Retail Funds (since July 2003). Formerly Vice President of the Retail Funds (September 2002 to July 2003). Mary E. Mullin* (39) 1221 Avenue of the Americas New York, NY 10020 Secretary since July 2003 or since Inception Date Executive Director of the Investment Adviser and various entities affiliated with the Investment Adviser; Secretary of the Retail Funds (since July 2003) and the Institutional Funds (since June 1999). * ‘‘Interested person’’ of the Funds within the meaning of the Investment Company Act. Messrs. Robison, Germany, Shea, Fink, Otto and Smith, and Ms. Doberman, Chang Yu and Mullin are also officers of the Investment Adviser or its affiliates. Each of the nominees for Trustee has consented to be named in this Joint Proxy Statement and to serve as a Trustee of the Funds if elected. The Board of each Fund has no reason to believe that any of the nominees named above will become unavailable for election as a Trustee, but if that should occur before the Meeting for that Fund, Proxy Cards will be voted for such persons as the Board of the Fund may recommend. Share Ownership of Trustees The Trustees have adopted a policy pursuant to which each Trustee and/or his or her spouse is required to invest at least $100,000 in any of the funds in the Morgan Stanley Retail and Institutional Funds on whose boards the Trustee serves. In addition, the policy contemplates that the Trustees will, over time, increase their aggregate investment in the funds above the $100,000 minimum requirement. The Trustees may allocate their investments among specific funds in any manner they determine is appropriate based on their individual investment objectives. Any new Trustee will be given a one year period following his or her election within which to comply with the foregoing. As of the date of this Joint Proxy Statement, each incumbent Trustee is in compliance with the policy. As of March 31, 2006, the total value of the investments by the Trustees and/or their spouses in shares of the Morgan Stanley Retail Funds and Institutional Funds was approximately $31.1 million. This amount includes compensation deferred by the Trustee at his or her election pursuant to a deferred compensation plan. Such deferred compensation is placed in a deferral account and deemed to be invested in one or more of the Retail Funds or Institutional Funds (or portfolio thereof) that are offered as investment options under the plan. For information regarding the dollar ranges of beneficial ownership of shares in each Fund and in certain registered investment companies by the Trustees of the Funds and each nominee, please see Exhibit B. Board Meetings and Committees The Board of each Fund has a separately-designated standing Audit Committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended (the ‘‘Exchange Act’’“Liquidation”). The Audit Committee provides assistance to the Board with respect to the engagement an the independent registered public accounting firm and the qualifications, independence and performancePlan of the independent registered public accounting firm. The Audit Committee also, among other things, reviews with the independent registered public accounting firm the plan and results of the audit engagement and matters having a material effect on each Fund’s financial operations. Each Fund has adopted an Audit Committee Charter. The members of the Audit Committee of each Fund are currently Michael Bozic, Edwin J. Garn, Wayne E. Hedien, Dr. Manuel H. Johnson, Joseph J. Kearns, Michael E. Nugent and Fergus Reid, none of whom is an ‘‘interested person,’’ as defined under the Investment Company Act, of any of the Funds (with such disinterested Trustees being ‘‘Independent Trustees’’ or individually, an ‘‘Independent Trustee’’). The current Chairman of each Audit Committee is Dr. Manuel H. Johnson and the Deputy Chairman is Joseph J. Kearns. The Board of each Fund also has a Governance Committee. The Governance Committee identifies individuals qualified to serve as Independent Trustees on each Fund’s Board and its committees and recommends such qualified individuals for nomination by the Fund’s Independent Trustees as candidates for election as Independent Trustees, advises each Fund’s Board with respect to Board composition, procedures and committees, develops and recommends to each Fund’s Board a set of corporate governance principles applicable to each Fund, monitors and makes recommendations on corporate governance matters and policies and procedures of the Fund Board and its committees and oversees periodic evaluations of the Fund Board and its committees. Each Fund has adopted a formal, written Governance Committee Charter, Liquidation, a copy of which is attached hereto as ScheduleExhibit A,. The Governance Committee Charter is not available on the Funds' website. The members of the Governance Committee of each Fund are currently Michael Bozic, Edwin J. Garn and Fergus Reid, each of whom is an Independent Trustee. The current Chairman of each Governance Committee is Fergus Reid. None of the Funds has a separate nominating committee. While each Fund’s Governance Committee recommends qualified candidates for nominations as Independent Trustees, the Board of each Fund believesdirected that the task of nominating prospective Independent Trustees is important enough to require the participation of all current Independent Trustees, rather than a separate committee consisting of only certain Independent Trustees. Accordingly, each current Independent Trustee (Michael Bozic, Edwin J. Garn, Wayne E. Hedien, Dr. Manuel H. Johnson, Joseph J. Kearns, Michael E. Nugent and Fergus Reid) has participated in the election and nomination of candidates for election as Independent Trustees for the respective Funds presented in this Proposal for which the Independent Trustee serves. Persons recommended as candidates for nomination as Independent Trustees are required to possess such knowledge, experience, skills, expertise and diversity so as to enhance the Board’s ability to manage and direct the affairs and business of the Fund, including, when applicable, to enhance the ability of committees of the Board to fulfill their duties and/or to satisfy any independence requirements imposed by law or regulation. While the Independent Trustees of each of the Funds expect tomatter be able to continue to identify from their own resources an ample number of qualified candidates for each Fund’s Board as they deem appropriate, they will consider nominations from Shareholderssubmitted to the Board. Nominations from Shareholders should be in writingfor their consideration and sent to the Independent Trustees as described below under ‘‘Shareholder Communications.’’ Finally, eachapproval. The Fund’s Board has formed an Insurance Committee to review and monitor the insurance coverage maintained by each Fund. The Insurance Committee for all Funds currently consists of Messrs. Nugent, Fiumefreddo and Hedien. Messrs. Nugent and Hedien are Independent Trustees. For each respective Fund’s most recently completed fiscal year, each incumbent Trustee attended at least seventy-five percent of the aggregate number of meetings of the Board and of any committee on which he served, held during the time such Trustee was a member of the Board. See Exhibit C to this Joint Proxy Statement for further information about committee and Board meetings. Shareholder Communications Shareholders may send communications to each Fund’s Board by addressing the communication directly to that Board (or individual Board members) and/or otherwise clearly indicating in the salutationcharter requires that the communication is for the Board (or individual Board members) andLiquidation be approved by sending the communication to either the Fund’s office or directly to such Board member(s) at the address specified for each Trustee above. Other Shareholder communications received by the Funds not directly addressed and sent to the Boards will be reviewed and generally responded to by management, and will be forwarded to the Boards only at management’s discretion based on the matters contained therein. Compensation Each Independent Trustee receives an annual fee of $180,000 for serving the Retail Funds and the Institutional Funds. Prior to October 1, 2005, each Independent Trustee received an annual retainer fee of $168,000 for serving the Retail Funds and the Institutional Funds. In addition, each Independent Trustee received $2,000 for attending each of the four quarterly board meetings and two performance meetings that occurred each year, so that an Independent Trustee who attended all six meetings received total compensation of $180,000 for serving the funds. The Chairman of the Audit Committee of each Fund receives an additional annual retainer fee of $60,000. Other Committee Chairmen and the Deputy Chairman of the Audit Committee receive an additional annual retainer fee of $30,000. The aggregate compensation paid to each Independent Trustee is paid by the Retail Funds and the Institutional Funds, and is allocated on a pro rata basis among each of the operational funds/portfolios of the Retail Funds and the Institutional Funds based on the relative net assets of each of the funds/portfolios. Mr. Fiumefreddo receives an annual fee from the Retail Funds and the Institutional Funds for his services as Chairman of the Boards of the Retail Funds and the Institutional Funds and for administrative services provided to each Board. The Fund also reimburses such Trustees for travel and other out-of-pocket expenses incurred by them in connection with attending such meetings. Trustees of the Fund who are employed by the Investment Adviser or an affiliated company receive no compensation or expense reimbursement from the Fund for their services as Trustee. Effective April 1, 2004, the Funds began a Deferred Compensation Plan (the ‘‘DC Plan’’), which allows each Independent Trustee to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Trustees throughout the year. Each eligible Trustee generally may elect to have the deferred amounts credited with a return equal to the total return on one or more of the Retail Funds or Institutional Funds (or portfolios thereof) that are offered as investment options under the DC Plan. At the Trustee’s election, distributions are either in one lump sum payment, or in the form of equal annual installments over a period of five years. The rights of an eligible Trustee and the beneficiaries to the amounts held under the DC Plan are unsecured and such amounts are subject to the claims of the creditors of the Fund. Prior to April 1, 2004, the Institutional Funds maintained a similar Deferred Compensation (the ‘‘Prior DC Plan’’), which also allowed each Independent Trustee to defer payment of all, or a portion, of the fees he or she received for serving on the Board of Trustees throughout the year. The DC Plan amends and supersedes the Prior DC Plan and all amounts payable under the Prior DC Plan are now subject to the terms of the DC Plan (except for amounts paid during the calendar year 2004, which remain subject to the terms of the Prior DC Plan). Set forth on the following page is a table showing the aggregate compensation paid by each Fund to each of its Trustees, as well as the total compensation paid to each Trustee of each Fund by all of the Funds and by other U.S. registered investment companies advised by MSIA or any investment companies that have an investment adviser that is an affiliated person of MSIA (collectively, the ‘‘Fund Complex’’) for their services as Trustees of such investment companies. The aggregate compensation paid by each Fund is as of each Fund’s respective most recently completed fiscal year end. See Exhibit C for a list of each Fund’s fiscal year end. In all cases, there were no pension or retirement benefits accrued as part of any Fund’s expenses. The amounts reflected in the following table include amounts paid by the Fund Complex for services rendered during the calendar year ended December 31, 2005 for each fund within the Fund Complex, regardless of whether such amounts were actually received by the Trustees during such fiscal year. COMPENSATION TABLE Name of Trustees Active Assets California Tax-Free Fund Active Assets Government Securities Fund Active Assets Institutional Government Securities Fund Active Assets Institutional Money Fund Active Assets Money Fund Active Assets Tax-Free Fund California Tax-Free Daily Income Fund Liquid Asset Fund New York Municipal Money Market Fund Tax-Free Daily Income Fund U.S. Government Money Market Fund Total Compensation from Funds and Fund Complex Paid to Trustees(2) (4) Interested Trustee                         Fiumefreddo(1) $ 1,728 $ 2,617 $ 1,003 $ 1,988 $ 54,374 $ 7,150 $ 449 $ 47,597 $ 168 $ 1,025 $ 1,234 $ 360,000 Higgins(1) 0 0 0 0 0 0 0 0 0 0 1,217 0 Independent Trustee                         Bozic 858 1,305 493 996 27,048 3,554 214 23,652 80 514 1,234 180,000 Garn 849 1,288 488 982 26,720 3,511 214 23,370 80 508 1,641 178,000 Hedien 858 1,305 493 996 27,048 3,554 214 23,652 80 514 1,446 180,000 Johnson 1,146 1,741 660 1,327 36,109 4,746 289 31,584 108 685 1,437 240,000 Kearns(3) 998 1,512 580 1,148 31,415 4,132 264 27,488 99 603 1,437 217,000 Nugent 1,002 1,523 577 1,161 31,578 4,150 252 27,618 94 600 2,444 210,000 Reid 1,002 1,523 577 1,161 31,578 4,150 252 27,618 94 600 0 215,000 (1) ‘‘Interested person’’ of the Fund within the meaning of the Investment Company Act. Mr. Fiumefreddo receives an annual fee for his services as Chairman of the Boards of the Retail Funds and for administrative services provided to the Boards of the Retail Funds. As of July 1, 2006, Mr. Fiumefreddo will resign as Chairman of the Boards of the Retail Funds and will be replaced by Mr. Nugent. As a result, Mr. Nugent will receive the annual fee for his services as Chairman of the Board of the Retail Funds from that date. (2) Amounts shown in this column also include amounts received by each Trustee for service on the Boards of several other funds affiliated with the Funds, which are part of the Fund Complex. Because the funds in the Fund Complex have different fiscal year ends, the amounts shown in this column are presented on a calendar year basis. (3) Amounts shown in this table include certain amounts deferred pursuant to the DC Plan. (4) Prior to December 31, 2003, 49 of the Retail Funds (the ‘‘Adopting Funds’’), had adopted a retirement program under which an Independent Trustee who retired after serving for at least five years as an Independent Trustee of any such fund (an ‘‘Eligible Trustee’’) would have been entitled to retirement payments based on factors such as length of service, upon reaching the eligible retirement age. On December 31, 2003, the amount of accrued retirement benefits for each Eligible Director was frozen, and will be payable, together with a return of 8% per annum, at or following each such Eligible Trustee's retirement. Messrs. Bozic, Garn, Hedien, Johnson and Nugent were participants in this retirement program. As of the calendar year ended December 31, 2005, retirement benefits accrued by the Adopting Funds and their estimated benefits upon retirement from all Adopting Funds were $19,439 and $46,871, respectively for Bozic, $(10,738) and $46,917, respectively for Garn, $37,860 and $40,020, respectively for Hedien, $19,701 and $68,630, respectively for Johnson, and $35,471 and $61,377, respectively for Nugent. Mr. Garn’s retirement expense is negative due to the fact that his retirement date has been extended to October 31, 2007, and therefore the expense has been overaccrued. Assuming a quorum is present, approval of Proposal 1 with respect to each Fund except the Liquid Asset Fund will require the affirmative vote of a majoritythe lesser of (i) 67% of the voting securities present at the meeting, if the holders of more than 50% of such securities are present or represented by Proxy or (ii) more than 50% of the outstanding voting Shares of the Fund. If Shareholders approve the Liquidation pursuant to the Plan of Liquidation, the Adviser will direct the orderly liquidation of the Fund’s shares representedassets after the date of such approval and as soon as practicable will direct the determination of, making provision for the payment of, or maintaining reserves against all reasonably ascertainable liabilities of the Fund, and the distribution of the net proceeds to Shareholders in personone or more liquidating distributions. The Adviser expects that Shareholders will receive such distribution in cash. Such amount will be reduced by proxy atcertain expenses of the Meeting and entitled to vote at the Meeting. Assuming a quorum is present, approval of Proposal 1 with respectFund, pursuant to the Liquid AssetPlan of Liquidation. As soon as reasonably practicable following the payment of the final liquidating distribution, the Fund will requireterminate pursuant to Board approval. If Shareholders do not approve the affirmative voteLiquidation pursuant to the Plan of a plurality ofLiquidation, the votes cast at the Meeting. A ‘‘plurality’’ means the nominee must receive more votes thanBoard will consider what further action, if any, other candidate for the same position, but not necessarily a majority of the votes cast.to take. The Board of each Fundunanimously recommends that you vote ‘‘For’’“FOR” the electionproposal to liquidate the Fund pursuant to the Plan of the nominees as Trustees.Liquidation. OVERVIEW OF PROPOSALS 2 3 AND 4 RELATED TO THE ELIMINATION, MODIFICATION OR RECLASSIFICATION OF CERTAIN FUNDAMENTAL INVESTMENT RESTRICTIONS Background The Investment Company Act requires a registered investment company, including eachFund commenced operations on December 28, 1989. As of May 12, 2020, the Funds, to have certain specific investment policiesFund’s assets under management were $3.2 million. The Adviser believes it is unlikely that can be changed only with shareholder approval. Investment companies may also elect to designate other policies that may be changed only with a shareholder vote. Both types of policies are often referred to as ‘‘fundamental’’ policies. In this joint proxy statement, the word ‘‘restriction’’ or ‘‘limitation’’ is sometimes used to describe a policy. Certain fundamental policies have been adoptedFund will experience material growth in assets in the past by the Funds to reflect certain regulatory, business or industry conditions that are no longer in effect. For example, the National Securities Markets Improvement Act of 1996 (‘‘NSMIA’’) preempted many investment restrictions formerly imposed by state securities lawsforeseeable future and regulations (these state laws and regulations are often referred to as ‘‘blue sky’’ laws and regulations), so those state requirements no longer apply. As a result, many of the current restrictions unnecessarily limit the investment strategies available to the Investment Adviser in managing a Fund’s assets. In addition, the lack of uniform standards across the Funds leads to operating inefficiencies and increases the costs of compliance monitoring. Accordingly, the Investment Adviser recently conducted a review of each Fund’s fundamental policies with the following goals: (i) to simplify, modernize and make consistent with those of other investment companies advised by the Investment Adviser or its affiliates, the Funds’ policies that are required to be fundamental under the Investment Company Act, (ii) to reclassify as ‘‘non-fundamental’’ (i.e., they may be changed or eliminated by a Fund’s board without Shareholder approval) any policies that are not required to be fundamental under the Investment Company Act or the positions of the staff of the SEC in interpreting the Investment Company Act, in which case, depending on the circumstances, the policy would be either eliminated or adopted by the Board as a non-fundamental policy in the same or a modified form and (iii) to reclassify as non-fundamental or to eliminate certain policies previously required under state securities laws. Proposals 2, 3 and 4 seek Shareholder approval of changes that are intended to accomplish the foregoing goals. Not all Proposals apply to each Fund. The proposed changes to the fundamental policies are discussed in detail below. The tables following this discussion will assist you in determining which Proposals apply to your Fund(s) and which investment policy or restriction changes are proposed for each Fund. By reducing to a minimum those policies that can be changed only by a Shareholder vote, each Fund should be able to avoid the costs and delay associated with a Shareholder meeting and each Board believes that the Investment Adviser’s ability to manage the Fund’s portfolio in a changing regulatory or investment environment will be enhanced. Shareholders should note that certain of the proposed fundamental policies are stated in terms of ‘‘to the extent permitted by the Investment Company Act or the rules and regulations thereunder.’’ Applicable law can change over time and may become more or less restrictive as a result. The fundamental policies have been drafted in this manner so that a change in law would not require the Funds to seek a Shareholder vote to amend the policy to conform to applicable law, as revised. Although the Proposals give the Funds greater flexibility to respond to future investment opportunities, the Investment Adviser does not anticipate that the changes, individually orFund will attract meaningful new flows to reach the scale necessary to support the Fund’s ongoing operating expenses. Because of the lack of investor demand, inefficiencies, higher costs and disadvantageous economies of scale attendant with the Fund’s small asset base, the Adviser has concluded that it would be in the aggregate, will result at this time inbest interests of the Fund and its Shareholders to liquidate the Fund. At a material changemeeting held on June 16, 2020, the Board considered whether it would be appropriate and in the levelbest interests of the Fund and its shareholders to liquidate the Fund and, after careful consideration of the matter, the Trustees approved the Liquidation pursuant to the Plan of Liquidation and directed that the matter be submitted to the Shareholders for their consideration and approval. In evaluating the Plan of Liquidation, the Trustees considered a number of factors, including: (i) the size and potential of the Fund’s marketplace opportunity; (ii) the Fund’s financial viability and future ability to support its expense structure given continued net outflows; (iii) current and historical assets under management of the Fund; (iv) the ability of the portfolio management team to effectively manage the Fund in accordance with its investment risk associated with anobjective and investment strategies at a low asset level; and (v) alternatives to the Liquidation. Based on consideration of the foregoing and all other factors deemed relevant by the Trustees, the Trustees determined that approval of the Plan of Liquidation was in the Funds, nor does the Investment Adviser anticipate that the proposed changes in the fundamental investment restrictions will, individually or in the aggregate, change materially the manner in which the Funds are managed and operated. 2.  PROPOSALS TO ELIMINATE CERTAIN FUNDAMENTAL INVESTMENT RESTRICTIONS Name of Fund 2A Eliminate Pledging Assets Policy 2B Eliminate Margin Policy 2C Eliminate Oil & Gas Policy 2D Eliminate Warrants Policy 2E Eliminate Trustee/ Officer Ownership Policy 2F Eliminate Exercising Control Policy 2G Eliminate Common Stock Policy 2H Eliminate Unseasoned Companies Policy 2I Eliminate Joint Securities Accounts Policy Active Assets California Tax-Free Fund X X X X X X Active Assets Government Securities Fund X X X X X Active Assets Institutional Government Securities Fund X X Active Assets Institutional Money Fund X X Active Assets Money Fund X X X X X X X X Active Assets Tax-Free Fund X X X X X X X California Tax-Free Daily Income Fund X X X X X X Liquid Asset Fund X X X X X X X X New York Municipal Money Market Fund X X X X X X Tax-Free Daily Income Fund X X X X X X X U.S. Government Money Market Fund X X X X X Proposal 2.A. — Eliminationbest interests of the Fundamental Policy Restricting Fund and its Shareholders. In order to facilitate the liquidation of the Fund, the Adviser or its affiliates will purchase shares of the Fund before the Record Date in an amount in excess of 50% of the Fund’s Abilityoutstanding Shares. The Adviser or its affiliates intend to Pledge Assetsvote those shares “FOR” the Proposal. Such share ownership and associated voting intentions create potential conflicts of interest. Applicable Funds: See the Chart on page 16 Reasons for the EliminationIf Shareholders of the Policy:Fund fail to approve the Proposal, the Fund will not be liquidated and will continue to operate and be managed in accordance with the investment objective and investment strategies of the Fund. However, in such case, the Trustees would determine what alternative action, if any, should be taken. Each applicable Fund’s fundamental policy prohibiting or restricting pledging, hypothecating, mortgaging, or otherwise encumbering Description of the Fund’s assets was basedPlan of Liquidation and the Liquidation The Plan of Liquidation will become effective on the requirements formerly imposeddate of its approval by state ‘‘blue sky’’ regulatorsShareholders (the “Effective Date”). Following Shareholder approval, the Fund will, as a condition to registration. As a resultsoon as practicable after the Effective Date, complete the sale of NSMIA, this policy is no longer required and may be eliminated from each Fund’s fundamental investment policies. The Funds’ current limits on pledging may conflict with each Fund’s ability to borrow money to meet redemption requests or for temporary emergency purposes or for any other purpose. This conflict arises because banks may require borrowers such as the Funds to pledge assetsportfolio securities it holds in order to collateralizeconvert its assets to cash and will not engage in any business activity except for the amount borrowed. These collateral requirements are typicallypurpose of winding up its business and affairs, preserving the value of its assets and distributing assets to Shareholders after the payment to (or reservation of assets for amounts at least equal to, and in certain cases larger than, the principal amountpayment to) all creditors of the loan. The Funds’ current policies, however, could be read to prevent these types of collateral arrangements and could therefore have the effect of reducing the amountFund; provided that the Funds may borrow in these situations. AlthoughFund shall, prior to the Investment Adviser currently plans, on behalfmaking of the Funds,final liquidating distribution, continue to engage only in pledging in connection with borrowing money for redemptions or temporary emergency purposes, pledging assets could decrease the Funds’ ability to liquidate assets. If the Funds pledge a large portion of their assets, the ability to meet redemptionhonor requests or other obligations could be delayed. In any event, the Funds’ current borrowing limits would remain consistent with limits prescribed under the Investment Company Act. Proposal 2.B. — Elimination of the Fundamental Policy Restricting Purchases of Securities on Margin Applicable Funds: See the Chart on Page 16 Reasons for the Eliminationpurchase and redemption of the Investment Policy: Each applicable Fund’s fundamental policy restricting margin activities was based on the requirements formerly imposed by state ‘‘blue sky’’ regulatorsShares as a condition to registration. As a result of NSMIA, these policies are no longer required and may be eliminated from each Fund’s fundamental investment policies. Furthermore, it is unlawful for an investment company, in contravention of applicable SEC rules or orders, to purchase securities on margin except for such short-term credits as are necessary for clearing transactions. As a result, elimination of each Fund’s restriction on margin activities is unlikely to affect the Fund’s investment strategies at this time. However, in the event of a change in the applicable federal regulatory requirements, Funds would have the flexibility, subject to Board approval, to alter their investment practice without the expense and delay of a shareholder vote. The extent to which a Fund may engage in margin activities, and the nature and risks of such transactions, will be disclosed in a Fund’s prospectus and/or statement of additional information. Proposal 2.C. — Elimination of the Fundamental Policy Prohibiting Investments in Oil, Gas and Other Types of Minerals or Mineral Leases Applicable Funds: See the Chart on Page 16 Reasons for the Elimination of the Investment Policy: Each applicable Fund’s fundamental policy prohibiting its ability to purchase or sell interests in oil, gas, or other types of minerals or mineral leases was based on the requirements formerly imposed by state ‘‘blue sky’’ regulators as a condition to registration. As a result of NSMIA, this policy is no longer applicable and may be eliminated from the Funds’ investment policies. There are no current expectations that the Funds will engage in such activities. However, elimination of the fundamental policy would afford the Funds the flexibility, subject to Board approval, to make such investments without the delay and expense of a Shareholder vote. Should a Fund decide to engage in such activities, appropriate disclosure regarding the nature and risks of such investments would be disclosedpermitted in the Fund’s prospectus, and/or statement of additional information. Proposal 2.D. — Elimination of the Fundamental Policy Regarding Investments in Warrants Applicable Funds: See the Chart on Page 16 Reasons for the Elimination of the Investment Policy: Each applicable Fund has a fundamental policy that imposes a percentage limitation on investments in warrants (typically, 5%). The restrictions were imposed by state ‘‘blue sky’’ regulators, as a condition to registration. However,amended and supplemented, and may, as a result of NSMIA, this restriction is no longer requireddetermined to be a fundamental investment policy. Eliminationappropriate by the Board, make payment of dividends and other distributions to Shareholders and permit the fundamental policy would provide a Fund the maximum flexibility, subject to Board approval, to investreinvestment thereof in warrants to the extent permissible under applicable law without incurring the expense and delayadditional Shares. The Plan of a Shareholder vote. Warrants are derivative securities that entitle the holder to purchase another security at a specified price at any time during the life of the warrants. Investments in warrants may be considered speculative because they do not represent any rights in the assets of an issuing company nor do they entitle the holder to dividends or voting rights. In addition, if the exercise price of a warrant is above the market price on, or a Fund fails to exercise the warrant prior to, the expiration date, the warrant will expire worthless. For any Fund that intends to invest in warrants, the extent to which a Fund may invest in warrants, and the nature and risks of such investments, will be disclosed in a Fund’s prospectus and/or statement of additional information. Proposal 2.E. — Elimination of the Fundamental Policy Prohibiting or Restricting the Purchase of Securities of Issuers in which Trustees or Officers Have an Interest Applicable Funds: See the Chart on Page 16 Reasons for the Elimination of the Investment Policy: Each applicable Fund’s fundamental policy prohibiting or restricting the purchase of securities in which Fund trustees or officers have an interest were originally adopted to address the requirements formerly imposed by state ‘‘blue sky’’ regulators as a condition to registration. As a result of NSMIA, this policy is no longer required and may be eliminated from the Funds’ fundamental investment policies. Eliminating this restriction would increase the Investment Adviser’s flexibility when choosing investments on a Fund’s behalf. In addition, the Investment Adviser believesLiquidation provides that the policy is unnecessary because each Fund’s Code of Ethics adequately covers and provides for the monitoring of the Fund’s securities purchases and security ownership by the Fund’s officers and trustees. Further, securities purchased by a Fund thatTrustees may pose conflicts of interest are subjectauthorize such variations from, or amendments to, the restrictions imposed by Section 17 of the Investment Company Act and the rules thereunder. Proposal 2.F. — Elimination of the Fundamental Policy Prohibiting Investments for Purposes of Exercising Control Applicable Funds: See Chart on Page 16 Reasons for the Elimination of the Investment Policy: Each applicable Fund’s fundamental policy prohibiting it from investing in a security for the purpose of obtaining or exercising control over, or management of, the issuer was based on the requirements formerly imposed by state ‘‘blue sky’’ regulators as a condition to registration. As a result of NSMIA, this policy is no longer required and may be eliminated from a Fund’s investment policies. Eliminating this investment restriction would not affect the Funds’ investment strategies, as the Funds do not ordinarily invest for the purpose of exercising control over companies. Proposal 2.G. — Elimination of the Fundamental Policy Regarding Purchase of Common Stock and Other Instruments Applicable Funds: All Funds Reasons for the Elimination of the Investment Policy: Each applicable Fund’s fundamental policy prohibiting it from investing in common stock and, in some cases, preferred stocks, warrants, corporate bonds debentures, state bonds, municipal bonds or industrial revenue bonds and other equity securities, was based on the requirements formerly imposed by state ‘‘blue sky’’ regulators as a condition to registration. As a result of NSMIA, this policy is no longer required and may be eliminated from a Fund’s investment policies. Eliminating this investment restriction would not affect the Funds’ investment strategies of investing entirely in short-term highly rated fixed income securities. Proposal 2.H. — Elimination of the Fundamental Policy Regarding Investments in Unseasoned Companies Applicable Funds: See the Chart on Page 16 Reasons for the Elimination of the Investment Policy: Each applicable Fund’s fundamental policy prohibiting investments in issuers that have been in business for less than three years (i.e., unseasoned companies) was based on the requirements formerly imposed by state ‘‘blue sky’’ regulators as a condition to registration. As a result of NSMIA, this policy is no longer required and may be eliminated from a Fund’s fundamental investment policies. Elimination of the policy would permit a Fund, subject to Board approval, to further avail itself of investment opportunities in smaller capitalization, less seasoned companies. Such companies may not have experience in operating through prolonged periods of economic difficulty and, as a result, the price of their shares may be more volatile than the shares of companies that have longer operating histories. To the extent that a Fund invests in these types of issuers, it may be subject to greater risks and appropriate disclosure regarding the nature and risks of such investment would be disclosed in the Fund’s prospectus and/or statement of additional information. Proposal 2.I. — Elimination of the Fundamental Policy Prohibiting Participation in Joint Securities Accounts Applicable Funds: Active Assets Money Fund and Liquid Asset Fund Reasons for the Elimination of the Investment Policy: Each applicable Fund’s fundamental policy prohibits it from participating on a joint or several basis in any securities trading account. This fundamental policy was originally adopted to address the requirements formerly imposed by state ‘‘blue sky’’ regulators as a condition to registration. As a result of NSMIA, this policy is no longer required and may be eliminated from the Funds’ fundamental investment policies. Section 17(d) of the Investment Company Act generally prohibits any affiliated person of or principal underwriter for a Fund acting as principal from effecting any transaction in which the Fund is a joint, or joint and several, participant with such person. Consequently, a Fund would be required to seek an exemptive order from the SEC before engaging in the type of activity covered by this policy, except for those few transactions that either the Investment Company Act or the SEC has deemed, with the proper level of Board oversight, to pose no problems of overreaching by an affiliate, such as a joint account to invest in repurchase agreements for efficient cash management purposes. If this fundamental policy is eliminated by Shareholders, it is currently anticipated that these Funds would participate in joint repurchase agreement accounts for overnight cash management purposes. Typically, these joint repurchase agreements would have a higher interest rate and would otherwise be more economical than separate repurchase agreements. 3.  PROPOSALS TO MODIFY CERTAIN FUNDAMENTAL INVESTMENT RESTRICTIONS Name of Fund 3A Modify Diversification Policy 3B Modify Borrowing Policy 3C Modify Loan Policy 3D Modify Commodities Policy 3E Modify Senior Securities Policy Active Assets California Tax-Free Fund X X X X X Active Assets Government Securities Fund X X X X X Active Assets Institutional Government Securities Fund X X X X X Active Assets Institutional Money Fund X X X X X Active Assets Money Fund X X X X X Active Assets Tax-Free Fund X X X X X California Tax-Free Daily Income Fund X X X X X Liquid Asset Fund X X X X X New York Municipal Money Market Fund X X X X Tax-Free Daily Income Fund X X X X X U.S. Government Money Market Fund X X X X Proposal 3.A. — Modify Fundamental Policy Regarding Diversification Applicable Funds: See the Chart Above Proposed New Fundamental Investment Policy:    If the proposed modification is approved by Shareholders, each Fund’s fundamental policy would read: ‘‘The Fund may not invest in a manner inconsistent with its classification as a ‘‘diversified company’’ as provided by (i) the Investment Company Act, as amended from time to time, (ii) the rules and regulations promulgated by the SEC under the Investment Company Act, as amended from time to time, or (iii) an exemption or other relief applicable to the Fund from the provisions of the Investment Company Act, as amended from time to time.’’ DiscussionPlan of Proposed Modification: Section 8(b)Liquidation (other than the terms of the Investment Company Act requires an investment companyliquidating distribution) as may be necessary or appropriate to state whether it is ‘‘diversified’’effect the complete Liquidation and the distribution of assets of the Fund to its shareholders in redemption of the issued and outstanding Shares of the Fund, all in accordance with the purposes intended to be accomplished by the Plan of Liquidation. As soon as that term is definedpracticable after the Effective Date, the Fund will send to each Shareholder of record who has not redeemed its Shares one or more liquidating distributions equal to the Shareholder’s proportionate interest in the Investment Company Act. Consequently, the proposed modification is consistent with the Investment Company Act, which only requires that a Fund state whether it is diversified. The Investment Company Act requires that funds classify themselves as either diversified or non-diversified. The difference is that diversified funds are subject to stricter percentage limits on the amount ofremaining assets that can be invested in any one company. Specifically, a diversified fund may not, with respect to 75% of its total assets: (1) invest more than 5% of its total assets in the securities of one issuer, or (2) hold more than 10% of the outstanding voting securities of such issuer. No change is being proposed to a Fund’s designation as diversified. Instead,Fund and information concerning the proposed change would modify a Fund’s fundamental investment policies regarding its sub-classification under the Investment Company Act to rely on the definitionssources of the term ‘‘diversified’’ in the Investment Company Act rather than stating the relevant percentage limitations expressed under current law. As a result, without a Fund’s Board or Shareholders taking further action, the modified investment policy would automatically apply the requirements of ‘‘diversification’’ under the Investment Company Act to a Fundliquidating distribution. Except as those requirements may be amended from timeotherwise agreed to time.between the Fund and the Adviser, all expenses incurred by or allocable to the Fund in carrying out the Plan of Liquidation shall be borne by the Fund. Certain ‘‘diversified’’ Funds have adopted limitations more restrictive than those required under the Investment Company Act, specifically these Funds apply the 5% limitation and/or the 10% limitation referred to above to 100% The adoption of the Fund’s assets rather than to 75%Plan of the Fund’s assets as permitted under the Investment Company Act. The proposed change would allow each of these Funds the ability to invest a higher percentage of its assets in particular issues when the Investment Adviser deems it appropriate and in the Fund’s best interest while still qualifying as a diversified fund under the Investment Company Act. To the extent that a Fund invests a greater proportion of its assets in a single issuer it will be subject to a correspondingly greater degree of risk associated with that investment. It should be noted that the modification of this fundamental policyLiquidation will not affect each Fund's intentionthe right of Shareholders to continueredeem Shares of the Fund at their then current net asset value. After the Liquidation, the Fund will be terminated pursuant to comply withBoard approval. Continued Qualification as a Regulated Investment Company During the diversification and other requirements of Subchapter M ofLiquidation Period The Fund expects to retain its qualification as a regulated investment company (“RIC”) under the Internal Revenue Code of 1986, as amended, (the ‘‘Code’’), in orderduring the liquidation period and, therefore, expects not to continue to qualify for the special tax treatment afforded to ‘‘regulated investment companies.’’be taxed on any of its net Proposal 3.B. — Modify Fundamental Policy Regarding Borrowing Money Applicable Funds: All Funds3 Proposed New Fundamental Investment Policy:    If the proposed modification is approved by Shareholders, each Fund’s fundamental policy regarding borrowing would read: ‘‘The Fund may not borrow money, except the Fund may borrow money to the extent permitted by (i) the Investment Company Act, as amended from time to time, (ii) the rules and regulations promulgated by the SEC under the Investment Company Act, as amended from time to time, or (iii) an exemption or other relief applicable to the Fundcapital gains realized from the provisions of the Investment Company Act, as amended from time to time.’’ Discussion of Proposed Modification: Every Fund is required to have a fundamental policy with respect to borrowing and each Fund is presently prohibited from borrowing, except as borrowings may be necessary for temporary or emergency * The Active Assets Institutional Government Securities Fund is classified as a diversified fund but has never adopted a formal diversification policy and thus would be adopting a new fundamental policy with respect to diversification as described above. purposes (such as meeting redemption requests that might otherwise require the untimely disposition of securities). Certain Funds have limited their permissible borrowings to amounts not in excess of a specified amount, such as 5%, 10%, 25% or 33 1/3% of the Fund’s total assets, and, in some cases, except as engaging in certain investment strategies may be considered borrowings. The language of these policies, however, varies widely from Fund to Fund. It is therefore proposed that this language be simplified and standardized. The proposed fundamental policy for borrowing would permit the Funds to borrow up to the full extent permitted under the Investment Company Act. There is no current intention, however, that any of the Funds would increase their borrowing capacity. If a Fund borrows and uses the proceeds to make additional investments, the income and appreciation from such investments will improve its performance if they exceed the associated borrowing costs but such investments will impair its performance if the income and appreciation thereon are less than such borrowing costs. This factor is known as leverage. The use of leverage is considered speculative and its use could increase the volatility of a Fund’s assets. Proposal 3.C. — Modify Fundamental Policy Regarding Loans Applicable Funds: All Funds Proposed New Fundamental Investment Policy:    If the proposed modification is approved by Shareholders, each Fund’s fundamental policy regarding loans would read: ‘‘The Fund may not make loans of money or property to any person, except (a) to the extent that securities or interests in which the Fund may invest are considered to be loans, (b) through the loan of portfolio securities, (c) by engaging in repurchase agreements or (d) as may otherwise be permitted by (i) the Investment Company Act, as amended from time to time, (ii) the rules and regulations promulgated by the SEC under the Investment Company Act, as amended from time to time, or (iii) an exemption or other relief applicable to the Fund from the provision of the Investment Company Act, as amended from time to time.’’ Discussion of Proposed Modification: The proposed change is intended to clarify a Fund’s ability to engage in securities lending to the extent permitted by the Investment Company Act and the then-current SEC policy. The Investment Company Act currently limits loans of a Fund’s securities to one-third of the Fund’s assets, including any collateral received from the loan, provided that loans are 100% collateralized by cash or cash equivalents. In the future, should the rules and regulations governing loans by mutual funds change, the proposed restriction would automatically conform to those new requirements without the need to solicit Shareholder votes. Currently, the Funds are prohibited from making loans of money or securities, except as specified below. The Active Assets Government Securities Fund and U.S. Government Money Market Fund can only lend through the purchase of debt securities, investments in repurchase agreements or by lending their portfolio securities. The Active Assets Institutional Government Securities Fund, Active Assets Institutional Government Securities Fund, Active Assets Institutional Money Fund, Active Assets Money Fund, Liquid Asset Fund can only lend through the purchase of debt securities, investments in repurchase agreements or by lending their portfolio securities, but only up to 10% of their assets. The Active Assets California Tax-Free Fund, Active Assets Tax-Free Fund, California Tax-Free Daily Income Fund, New York Municipal Money Market Fund and Tax-Free Daily Income Fund can only lend through the purchase of debt obligations and investments in repurchase agreements. If this Proposal is approved by Shareholders, the Funds would be permitted to make loans to the maximum extent permitted by the Investment Company Act including the participation in a securities lending program. Proposal 3.D. — Modify Fundamental Policy Regarding Investment in Commodities, Commodity Contracts and Futures Contracts Applicable Funds: All Funds Proposed New Fundamental Investment Policy:    If the proposed modification is approved by Shareholders, each Fund’s fundamental policy would read: ‘‘The Fund may not purchase or sell physical commodities unless acquired as a result of ownership of securities or other instruments; provided that this restriction shall not prohibit the Fund from purchasing or selling options, futures contracts and related options thereon, forward contracts, swaps, caps, floors, collars and any other financial instruments or from investing in securities or other instruments backed by physical commodities or as otherwise permitted by (i) the Investment Company Act, as amended from time to time, (ii) the rules and regulations promulgated by the SEC under the Investment Company Act, as amended from time to time, or (iii) an exemption or other relief applicable to the Fund from the provisions of the Investment Company Act, as amended from time to time.’’ Discussion of Proposed Modification: The proposed changes to a Fund’s policy are intended to make it clear that the Funds may use futures contracts, options on futures contracts and other derivatives. These instruments are generally accepted under modern portfolio management and are regularly used by many mutual funds and other institutional investors. Derivatives involve the risk that interest rates, securities prices and currency markets will not move in the direction that a Fund’s portfolio manager anticipates and the risk of imperfect correlation between the price of derivative instruments and movements in the direct investments for which derivatives are a substitute. Other risks include the possible absence of a liquid secondary market for any particular instrument and possible exchange-imposed price fluctuation limits, either of which may make it difficult or impossible to close out a position when desired, the risk that adverse price movements in an instrument can result in a loss substantially greater than the Fund’s initial investment in that instrument (in some cases, the potential loss is unlimited), and the risk that the counterparty will not perform its obligations. Certain of the Funds have a fundamental policy that does not permit or limits investments in futures contracts or other derivatives. If the Shareholders of these Funds approve this Proposal, these Funds would have the flexibility to invest in futures contracts, options on futures contracts and other derivatives to the extent determined appropriate by the Investment Adviser and the Board. The extent to which any such Fund may invest in futures contracts or other derivatives, including options, options on futures contracts, forward contracts, swaps, caps, floors, collars and any other financial instruments, will be disclosed in its prospectus and/or statement of additional information. Proposal 3.E. — Modify Fundamental Policy Regarding Issuance of Senior Securities Applicable Funds: See the Chart on Page 20 Proposed New Fundamental Investment Policy:    If the proposed modification is approved by Shareholders, each Fund’s fundamental policy would read: ‘‘The Fund may not issue senior securities, except the Fund may issue senior securities to the extent permitted by (i) the Investment Company Act, as amended from time to time, (ii) the rules and regulations promulgated by the SEC under the Investment Company Act, as amended from time to time, or (iii) an exemption or other relief applicable to the Fund from the provisions of the Investment Company Act, as amended from time to time.’’ Discussion of Proposed Modification: Although the definition of a ‘‘senior security’’ involves complex statutory and regulatory concepts, a senior security is generally thought of as an obligation of a fund which has a claim to the fund’s assets or earnings that takes precedence over the claims of the fund’s shareholders. The Investment Company Act generally prohibits mutual funds from issuing senior securities; however mutual funds are permitted to engage in certain types of transactions that might be considered ‘‘senior securities’’ as long as certain conditions are satisfied. For example, a transaction which obligates a fund to pay money at a future date (e.g., the purchase of securities to be settled on a date that is further away than the normal settlement period) may be considered a ‘‘senior security.’’ A mutual fund is permitted to enter into this type of transaction if it maintains a segregated account containing liquid securities in value equal to its obligation to pay cash for the securities at a future date. The Funds utilize transactions that may be considered to give rise to ‘‘senior securities’’ only in accordance with applicable regulatory requirements under the Investment Company Act. The primary purpose of the Proposal is to revise each Fund’s fundamental limitation with respect to senior securities to conform to a limitation that is expected to become the standard for all Morgan Stanley Funds.* If the Proposal is approved, the new fundamental senior securities limitation cannot be changed without a vote of a Fund’s shareholders. Adoption of the proposed limitation on senior securities is not expected to affect the way in which a Fund is managed, the investment performance of any Fund, or the securities or instruments in which a Fund invests. None of the Funds is currently engaged in issuing senior securities, except with the protections afforded by segregated accounts, and the Funds have no current intention to begin issuing senior securities. The proposed limitation would recognize that Funds may issue such securities only to the extent permitted under the Investment Company Act. To the extent a Fund becomes involved in such securities trading practices, the Board of each Fund will carefully review the Fund’s prospectus and/or statement of additional information disclosure of its participation and the risks of loss to the Fund and its shareholders which may result from such trading practices. The Board will further determine whether such trading practices are consistent with the Fund’s investment policies. * The Liquid Assets Fund does not have a fundamental policy regarding issuance of senior securities and thus would be adopting a new policy as described above. 4.  PROPOSALS TO RECLASSIFY CERTAIN FUNDAMENTAL POLICIES AS NON-FUNDAMENTAL POLICIES. Name of Fund 4A Reclassify as Non-Fundamental Short Sales Policy 4B Reclassify as Non-Fundamental Purchasing Other Investment Companies Policy 4C Reclassify as Non-Fundamental Illiquid/Restricted Securities Policy 4D Reclassify as Non-Fundamental Puts/Calls Policy Active Assets California Tax-Free Fund X X X Active Assets Government Securities Fund X X X X Active Assets Institutional Government Securities Fund Active Assets Institutional Money Fund Active Assets Money Fund X X X X Active Assets Tax-Free Fund X X X California Tax-Free Daily Income Fund X X X Liquid Asset Fund X X X X New York Municipal Money Market Fund X X X Tax-Free Daily Income Fund X X X U.S. Government Money Market Fund X X X Proposal 4.A. — Reclassification As Non-Fundamental the Fundamental Policy Regarding the Short Sale Of Securities Applicable Funds: See the Chart Above Proposed New Non-Fundamental Policy: It is proposed that the fundamental investment policy prohibiting short sales be reclassified as non-fundamental and revised to read as follows: ‘‘A Fund may not make short sales of securities, except short sales against the box.’’ Reasons for the Reclassification of the Investment Policy: Each of the Funds has a fundamental policy that prohibits the Fund from making short sales. This policy is not required under the Investment Company Act to be among a Fund’s fundamental investment policies. The Board of each Fund recommends that Shareholders vote to eliminate this fundamental investment limitation and replace it with the non-fundamental policy set forth above. The Funds do not presently intend to engage in short sales, although if the policy is reclassified as non-fundamental they may make short sales ‘‘against the box,’’ in which a Fund enters into a short sale of a security it owns. Short sales by a Fund involves certain risks and special considerations. If the Investment Adviser incorrectly predicts that the price of the security will decline, the Fund will have to replace the securities with securities with a greater value than the amount received from the sale. As a result, losses from short sales differ from losses that could be incurred from a purchase of a security, because losses from short sales may be unlimited, whereas losses from purchases can equal only the total amount invested. The policy, as proposed, would give the Investment Adviser flexibility in its ability to respond, subject to Board approval, to the availability of new instruments and strategies without the costs and delays associated with a future Shareholder vote. Proposal 4.B. — Reclassification as Non-Fundamental the Fundamental Policy Prohibiting Investments in Other Investment Companies Applicable Funds: See the Chart on Page 25 Proposed New Non-Fundamental Policy: It is proposed that the fundamental investment policy on investments in other investment companies be reclassified as non-fundamental and revised to read as follows: ‘‘The Fund may not invest its assets in the securities of any investment company except as may be permitted by (i) the Investment Company Act as amended from time to time; (ii) the rules and regulations promulgated by the SEC under the Investment Company Act as amended from time to time; or (iii) an exemption or other relief applicable to the Fund from the provisions of the Investment Company Act as amended from time to time.’’ Reasons for the Reclassification of the Investment Policy: The fundamental investment policy on investments in other investment companies was based on requirements formerly imposed by state ‘‘blue sky’’ regulators as a condition to registration. As a result of NSMIA, this policy is no longer required to be among a Fund’s fundamental investment policies. Moreover, in the absence of this policy, the Funds are still subject to the limitations on investments in other investment companies imposed on all mutual funds under Section 12(d)(1)(A) of the Investment Company Act. In general, under that section, an investment company (‘‘Acquiring Fund’’) cannot acquire shares of another investment company (‘‘Acquired Fund’’) if, after the acquisition, (i) the Acquiring Fund would own more than 3% of the Acquired Fund’s securities; (ii) more than 5% of the total assets of the Acquiring Fund would be invested in the Acquired Fund; and (iii) more than 10% of the total assets of the Acquiring Fund would be invested in other investment companies (including the Acquired Fund). As a result, this reclassification should not be material but will provide each Fund greater flexibility to respond to regulatory and other developments. If this Proposal is approved, the Funds will be permitted to invest in exchange-traded funds (‘‘ETFs’’). To the extent a Fund invests a portion of its assets in securities of other investment companies, the Fund will bear its proportionate share of the expenses of the purchased investment company in addition to its own expenses. Proposal 4.C. — Reclassification as Non-Fundamental the Fundamental Policy Prohibiting or Limiting Investments in Illiquid or Restricted Securities Applicable Funds: See the Chart on Page 25 Proposed New Non-Fundamental Policy: It is proposed that the fundamental investment policy limiting investments in illiquid or restricted securities be reclassified as non-fundamental and revised to read as follows: ‘‘The Fund may not invest more than 10% of its net assets or such other amount as may be permitted by SEC guidelines in illiquid securities, including restricted securities.’’ Reasons for the Reclassification of the Investment Policy: The prohibitions or limitations on investments in illiquid or restricted securities were required to be deemed fundamental based on the requirements formerly imposed by state ‘‘blue sky’’ regulators as a condition to registration. However, as a result of NSMIA, this policy is no longer required to be a fundamental investment restriction. Certain of the Funds are limited by their respective fundamental investment limitations to investing no more than 10% of their assets in illiquid securities (the ‘‘affected Funds’’). Under current regulatory interpretations, open-end mutual funds are able to invest up to 15% of their assets in illiquid securities other than money market funds which are limited to 10%. Accordingly, Proposal 4.C. is being submitted to shareholders in order to allow the affected Funds to invest in illiquid and restricted securities to the extent permitted by current regulatory interpretations. As no affected Fund is a money market fund, no affected Fund is restricted to investing 10% of its assets in illiquid securities by operation of law, other than by their respective current fundamental investment limitation. The Investment Adviser does not anticipate that the proposed change will have a material impact on the operation of the Funds since the Funds need to maintain a certain amount of liquidity to meet redemption requests, and accordingly, the Funds do not typically hold a significant amount of illiquid or restricted securities because of the potential for delays on resale and uncertainty in valuation. As a result of the Investment Adviser’s recommendation, the Boards approved a standardized, non-fundamental policy consistent with the current SEC guidance that would limit a Fund’s investments in illiquid securities, including restricted securities, to not more than 15% of its assets or such other amount permitted by SEC guidelines. Proposal 4.D. — Reclassification As Non-Fundamental The Fundamental Policy Onordinary income earned that it timely distributes to Shareholders. In the Purchase or Sale of Puts, Calls, and Combinations Thereof Applicable Funds:    See the Chart on Page 25 Proposed New Non-Fundamental Policy: It is proposedunlikely event that the fundamental investment policy prohibiting or limitingFund should lose its status as a RIC during the purchase or sale of puts, calls and combinations thereof be reclassified as non-fundamental and revised to read as follows: ‘‘Theliquidation process, the Fund may not write, purchasebe subject to taxes which would reduce any or sell puts, calls, or combinations thereof.’’ * Reasons for the Reclassificationall of the Investment Policy:types of liquidating distributions. Each The Trustees of the Funds has a fundamental policy limiting investments involving puts, calls, straddles and spreads. This policy is not required underFund recommend that the Investment Company ActShareholders approve the proposal to be among a Fund’s fundamental investment policies. The Board of each Fund recommends that shareholders vote to eliminate this fundamental investment limitation and reclassify the limitation as non-fundamental. Although no Fund has any current intention of actually expanding the range of instruments it is currently permitted to purchase, the reclassification as non-fundamental of a Fund’s fundamental policy limiting investments involving puts, calls, straddles and/or spreads would permitliquidate the Fund greater flexibility to respond to market and other developments. Certain Funds’ current investment policies place limits on the percentage of Fund assets that may be invested in options such as puts and calls. Although these Funds are proposing to reclassify such investment policies as non-fundamental, the Funds have no current intention of changing their investment policies with respect to puts, calls and combinations thereof, including changing any such limits which are now placed on the Funds’ ability to invest in such instruments. In addition, Funds that historically have not engaged in investing in such instruments will do * The Tax-Free Daily Income Fund will maintain a non-fundamental policy of not writing, purchasing puts, calls or combinations thereof except that it may acquire rights to resell municipal obligations at an agreed upon price and at or within an agreed upon time. so pursuant to the new policy only under the careful reviewPlan of each Fund’s Board, which review may include, among other things, placing limitations on the valueLiquidation. ADDITIONAL INFORMATION General The holders of a majority of the Fund’s assetsShares issued and limitations on the leveloutstanding and entitled to vote of risk deemed to be acceptable in connection with such investments. Put and call options involve a certain degree of risk. If a put or call option written by a Fund were exercised, the Fund, would be obligated to buypresent in person or sell the underlying securityrepresented by proxy, will constitute a quorum at the exercise price. AsMeeting. Abstentions will have the same effect as votes “AGAINST” the proposal to liquidate the Fund, pursuant to the Plan of Liquidation. In the event that the necessary quorum to transact business or the vote required to approve or reject a result, writing a put option involvesproposal is not obtained at the risk of a decrease inMeeting, the market valuechairman of the underlying security, in which case the option could be exercised and the underlying security would then be sold by the option holder toMeeting, an officer of the Fund or the Shareholders present in person or represented by Proxy at a higher price than its current market value. Writing a call option involves the risk of an increase in the market valueMeeting may propose one or more adjournments of the underlying security, in which caseMeeting to permit further solicitation of Proxies. Any such adjournment will require the option could be exercised and the underlying security would then be sold by the Fund to the option holder at a lower price than its current market value. Any future change in the Fund’s manner of investing or the instruments it may purchase will accompany appropriate disclosure to shareholders. REQUIRED VOTE FOR PROPOSALS 2, 3 AND 4 Approval of each investment policy Proposal requires the approvalaffirmative vote of the holders of a ‘‘majority of Shares of the outstanding voting securities’’Fund present in person or represented by proxy at the Meeting. In the event a quorum is present at the Meeting but sufficient votes to approve a proposal with respect to the Fund are not received, the chairman of eachthe Meeting, an officer of the Fund or the Shareholders present in person or represented by Proxies would be voted for or against adjournment consistent with the votes for and against the proposal for which underthe required vote has not been obtained. Principal Underwriter and Administrator Morgan Stanley Distribution, Inc., whose principal address is 522 Fifth Avenue, New York, NY 10036, is the principal underwriter for the Fund. Morgan Stanley Investment Management Inc., whose principal address is 522 Fifth Avenue, New York, NY 10036, serves as the Fund’s administrator. Submission of Shareholder Proposals The Fund is not required and does not intend to hold regular shareholder meetings unless shareholder action is required in accordance with the Investment Company Act means the affirmative vote of the lesser of (a) 67% or more of the voting securities present at the Meeting or represented by proxy if the holders of more than 50% of the outstanding voting securities of the Fund are present or represented by proxy or (b) more than 50% of the outstanding voting securities of the Fund. Each Board has considered various factors and believes that approval of these investment policy changes are in the best interest of each Fund and its Shareholders. If these investment Proposals are not approved by any Fund, that Fund’s current fundamental investment policies will remain in effect. The Board of each Fund, including a majority of the independent board members, recommends that the shareholders vote ‘‘For’’ the elimination, modification or reclassification of the Funds' fundamental policies1940, as described above. SECURITY OWNERSHIP OF CERTAIN TRUSTEES, OFFICERS AND BENEFICIAL OWNERS As of May 11, 2006, the aggregate number of shares of each Fund owned by the Fund’s officers and Trustees as a group was less than one percent of each Fund’s outstanding shares. For more information regarding personsamended. Shareholders who owned beneficially more than 5% of each Fund’s outstanding shares as of May 11, 2006, please see Exhibit A. Except as set forth on Exhibit A, to the knowledge of each Fund, no person was the beneficial owner of more than 5% of the Fund’s shares, as of that date. AUDITOR FEES Audit Fees The aggregate fees billed by Deloitte & Touche LLP in connection with the annual audit of each Fund’s financial statements for each Fund’s most recent fiscal years are set forth below:   2006* 2005 U.S. Government Money Market Fund $ 25,768 $ 23,689   2005* 2004 Active Assets California Tax-Free Fund $ 28,105 $ 26,761 Active Assets Government Securities Fund 28,105 26,761 Active Assets Institutional Government Securities Fund 26,465 25,311 Active Assets Institutional Money Fund 26,935 25,647 Active Assets Money Fund 31,614 30,103 Active Assets Tax-Free Fund 28,105 26,761 California Tax-Free Daily Income Fund 30,447 29,002 Liquid Asset Fund 31,496 30,716 New York Municipal Money Market Fund 26,938 25,660 Tax-Free Daily Income Fund 26,938 25,660 * Because the Funds have different fiscal year ends, fees for the most recent applicable two fiscal years are shown. Audit-Related Fees There were fees billed by Deloitte & Touche LLP related to the annual audit of a Fund’s financial statements for the 2006, 2005 and 2004 fiscal years, Active Assets California Tax-Free Trust, Active Assets Government Securities Trust, Active Assets Institutional Government Securities Trust, Active Assets Institutional Money Trust, Active Assets Money Trust, Active Assets Tax-Free Trust, California Tax-Free Daily Income Fund, Liquid Asset Fund, New York Municipal Money Market Trust, Tax-Free Daily Income Trust which paid audit-related fees in the amount of $540 and $452, respectively, for the 2005 and 2004 fiscal years; U.S. Government Money Market Trust which paid audit-related fees in the amount of $540 and $684, respectively, for the 2006 and 2005 fiscal years. Tax Fees The aggregate fees billed by Deloitte & Touche LLP in connection with tax compliance, tax advice and tax planning for each Fund for its most recent fiscal years are set forth below, which represent fees paid for the review of the Federal, state and local tax returns for each Fund.   2006* 2005 U.S. Government Money Market Fund $ 4,335 $ 4,757   2005* 2004 Active Assets California Tax-Free Fund $ 5,227 $ 4,929 Active Assets Government Securities Fund 4,977 4,929 Active Assets Institutional Government Securities Fund 4,948 4,900 Active Assets Institutional Money Fund 4,977 5,304 Active Assets Money Fund 4,977 4,929 Active Assets Tax-Free Fund 5,164 4,529 California Tax-Free Daily Income Fund 4,699 5,335 Liquid Asset Fund 5,483 6,031 New York Municipal Money Market Fund 5,485 5,977 Tax-Free Daily Income Fund 4,923 4,477 * Because the Funds have different fiscal year ends, fees for the most recent applicable two fiscal years are shown. All Other Fees There were no fees billed by Deloitte & Touche LLP for any other products and services not set forth above for each Fund for its respective last two most recently completed fiscal years. Audit Committee Pre-approval Each Fund’s Audit Committee’s policy is to review and pre-approve all auditing and non-auditing services to be provided to the Fund by the Fund’s independent registered public accounting firm. The Audit Committee Audit and Non-Audit Pre-Approval Policy and Procedures requires each Fund’s Audit Committee to either generally pre-approve certain services without consideration of specific case-by-case services, or requires the specific pre-approval of services by the Audit Committee or its delegate. Under the Policy, unless a type of service has received general pre-approval, it will require specific pre-approval by the Audit Committee if it is to be provided by the independent registered public accounting firm. Any services that are generally pre-approved may require specific pre-approval by the Audit Committee if the services exceed pre-approved cost levels or budgeted amounts. All of the audit, audit-related and the tax services described above for which Deloitte & Touche LLP billed each of the Funds’ fees for their respective fiscal years ended in 2005 were pre-approved by the Audit Committee. Aggregate Non-Audit Fees paid by the Investment Adviser and Affiliated Entities The aggregate fees billed for professional services rendered by Deloitte & Touche LLP for all other services provided to the Investment Adviser and to any entities controlling, controlled by or under common control with the Investment Adviser were $6,581,000 for the recent fiscal year ended November 30, 2005 and $3,826,295 for the fiscal year ended November 30, 2004, respectively. Such services for the most recent fiscal year and the fiscal year preceding the most recent fiscal year included: (i) audit-related fees of $5,091,000 and $3,746,491, respectively, for the issuance of a report under Statement on Accounting Standards No. 70 titled ‘‘Reports on the Processing of Transactions by Service Organizations’’ and (ii) all other fees of $1,490,000 and $79,800, respectively, related to services such as performance attestation, operational control reviews and the provision of educational seminars. The Audit Committee of each Fund has considered whether the provision of non-audit services and the provision of services to affiliates of the Investment Adviser are compatible with maintaining the independence of Deloitte & Touche LLP. Representatives from Deloitte & Touche LLP are expected to be present at the Meeting. The representatives from Deloitte & Touche LLP will have the opportunity to make a statement if they desire to do so and they are expected to be available to respond to appropriate questions. OTHER MATTERS No business other than as set forth herein is expected to come before any Meeting, but should any other matter requiring a vote of shareholders arise, including any question as to an adjournment of the Meeting for a Fund, the persons named in the enclosed Proxy Card(s) will vote thereon according to their best judgment in the interests of the Fund. SHAREHOLDER PROPOSALS The Funds do not hold regular annual meetings of shareholders. As a general matter, the Funds do not intend to hold future regular annual or special meetings of their shareholders unless required by the Investment Company Act. Any shareholder who wisheswould like to submit proposals for consideration at a meetingfuture shareholder meetings of shareholders of athe Fund should send such proposalwritten proposals to that Fund, c/o Morgan Stanley Investment Advisors Inc., 1221 Avenue of the Americas,Mary E. Mullin, Secretary, 1633 Broadway, New York, New York 10020.10019. To be considered for presentation at a shareholdershareholders’ meeting, rules promulgated by the SEC require that, among other things, a shareholder’s proposal must be received at the offices of the Fund within a reasonable time before a solicitation is made. Timely submission of a proposal does not necessarily mean that such proposal will be included. OTHER MATTERS The Board knows of no business, other than that set forth in the Notice of Special Meeting of Shareholders, to be presented for consideration at the Meeting, but should any other matter requiring a vote of Stockholders arise, the persons named in the enclosed Proxy Card will vote thereon according to their best judgment in the interests of the Fund. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS [To the knowledge of the management of the Fund, the following persons or entities owned, of record or beneficially, more than 5% of the Fund’s outstanding Shares as of the Record Date.] Class Name and Address of Beneficial Owner Amount and Nature of Beneficial Ownership Percent of Class [  ] [  ] MARY E. MULLIN Secretary [   ]% [   ]% As of the Record Date, the aggregate number of Shares of the Fund owned by the Fund’s officers and Trustees as a group was less than one percent of the Fund’s outstanding Class S or Class R Shares. MARY E. MULLIN Secretary Dated: June 14, 2006[  ], 2020 4 Shareholders of a Fund who do not expect to be present at the Meeting for thatthe Fund and who wish to have their sharesShares voted are requested to datevote their Shares by dating and signsigning the enclosed Proxy Card for the Fund and returnreturning it in the enclosed envelope. No postage is required if mailed in the United States. 5 EXHIBIT A INFORMATION PERTAINING TO THE FUNDS MEETING TIME AND SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS To the knowledge of the management of each Fund, the following persons owned beneficially more than 5% of the noted Fund’s outstanding shares at May 11, 2006. Fund Defined Terms Used in this Joint Proxy Statement Shares Outstanding as of May 30, 2006 Name and Address of Beneficial Owner Amount of Beneficial Ownership Percent of Fund Active Assets California Tax-Free Trust (Inception Date 10/30/91) Active Assets California Tax-Free Fund 1,286,415,226.320 shares None     Active Assets Government Securities Trust (Inception Date 07/12/91) Active Assets Government Securities Fund 586,594,875.320 shares CFS/AAA GOVT SEC TRUST OMNIBUS ACCOUNT ATTN: CATHY FORDE VP HARBORSIDE FINANCIAL CENTER 6TH FL, JERSEY CITY, NJ 07302 38,395,217.000 6.45 Active Assets Institutional Government Securities Trust (Inception Date 11/4/02) Active Assets Institutional Government Securities Fund 667,810,311.020 shares MAXIM INTEGRATED PRODUCTS, INC. ATTENTION: TIM RUEHLE 120 SAN GABRIEL ROAD SUNNYVALE CA 94086-5125 156,979,467.080 21.31       CFS/AAA INSTITUTIONAL GOVERNMENT SECURITIES TRUST OMNIBUS ACCOUNT ATTN PETER FU AAA OPS HARBORSIDE FINCL CENTER 6TH FL JERSEY CITY NJ 07302 120,818,281.010 16.40       CITY OF SPRINGFIELD ATTENTION: SALVATORE R CALVANESE 36 COURT STREET SPRINGFIELD MA 01103-1699 41,375,673.110 5.62 Fund Defined Terms Used in this Joint Proxy Statement Shares Outstanding as of May 30, 2006 Name and Address of Beneficial Owner Amount of Beneficial Ownership Percent of Fund       MORGAN STANLEY TRUST, DISCRETIONARY AGENT FOR THE RICHARD HARMON, JR. & JOLE HARMON JOINT REV TR PWM FI P O BOX 503 JERSEY CITY NJ 07303-0503 38,921,617.220 5.28   Active Assets Institutional Money Trust (Inception Date 02/15/00) Active Assets Institutional Money Fund 1,046,794,308.580 shares CFS/AAA INSTITUTIONAL MONEY TRUST OMNIBUS ACCOUNT ATTN: PETER FU AAA MANAGER HARBORSIDE FINANCIAL CENTER 6TH FL, JERSEY CITY, NJ 07302 160,948,199.600 15.41       MORGAN STANLEY TRUST TRUSTEE PHOSPHOGYPSUM STACK SYSTEM TR FD US AGRI-CHEMICALS CORP OWNER P O BOX 503 JERSEY CITY NJ 07303-0503 80,124,396.510 7.67       STEPHEN & MARY BIRCH FOUNDATION I 103 FOULK ROAD STE 200 WILMINGTON DE 19803-3742 56,997,040.130 5.46       MR PHILIP J PURCELL C/O MS ELLIE CURRIE 27 W332 CHURCHILL ROAD WINFIELD IL 60190-1816 54,841,254.730 5.25   Fund Defined Terms Used in this Joint Proxy Statement Shares Outstanding as of May 30, 2006 Name and Address of Beneficial Owner Amount of Beneficial Ownership Percent of Fund Active Assets Money Trust (Inception Date 07/07/85) Active Assets Money Fund 10,578,029,062.370 shares CFS/AAA MONEY TRUST OMNIBUS ACCOUNT ATTN: PETER FU AAA MANAGER HARBORSIDE FINANCIAL CENTER 6TH FL, JERSEY CITY, NJ 07302 617,002,508.380 5.73   Active Assets Tax-Free Trust (Inception Date 07/22/81) Active Assets Tax-Free Fund 4,674,288,853.150 shares None       Morgan Stanley California Tax-Free Daily Income Trust (Inception Date 07/25/88) California Tax-Free Daily Income Fund 175,842,716.230 shares None       Morgan Stanley Liquid Asset Fund Inc. (Inception Date 09/22/75) Liquid Asset Fund 17,042,918,682.132 shares None       Morgan Stanley New York Municipal Money Market Trust (Inception Date 03/20/90) New York Municipal Money Market Fund 55,064,184.840 shares JAMES E BOLIN 214 FOREST AVENUE RYE NY 10580-4177 5,394,757.400 9.86   Morgan Stanley Tax-Free Daily Income Trust (Inception Date 02/20/81) Tax-Free Daily Income Fund 335,511,941.130 shares None       Morgan Stanley U.S. Government Money Market Trust (Inception Date 02/17/82) U.S. Government Money Market Fund 910,920,630.269 shares None       EXHIBIT B  DOLLAR RANGE PLAN OF EQUITY SECURITIES IN THE FUNDSLIQUIDATION   The following table sets forth information regarding the dollar rangesPlan of beneficial ownership of shares in each Fund and in certain registered investment companies, including the Funds, managed by the Investment Adviser or an affiliate and held out to investors as related companies for purposes of investment and investor servicesLiquidation (the ‘‘Family of Investment Companies’’“Plan”) owned by the Trustees of the FundsMorgan Stanley New York Municipal Money Market Trust (the “Fund”), a business trust organized and each nominee for election as a Trustee, as of March 31, 2006. This information has been furnished by each Trustee and nominee. The dollar values inexisting under the following table are based upon the market pricelaws of the relevant Fund’s sharesCommonwealth of Massachusetts, which operates as of March 31, 2006. Name of Trustees Active Assets California Tax-Free Fund Active Assets Government Securities Fund Active Assets Institutional Government Securities Fund Active Assets Institutional Money Fund Active Assets Money Fund Active Assets Tax-Free Fund California Tax-Free Daily Income Fund Liquid Asset Fund New York Municipal Money Market Fund Tax-Free Daily Income Fund U.S. Government Money Market Fund Aggregate Dollar Range of Equity Securities in All Funds Overseen or to be Overseen by Trustee or Nominee in Family of Investment Companies Interested Trustee/Nominee Fiumefreddo None None None Over $100,000 Over $100,000 Over $100,000 None Over $100,000 None $10,001-$50,000 None Over $100,000 Higgins None None None None $10,001-50,000 $1-10,000 None $1-10,000 None None None Over $100,000 Independent Trustee Bowman None None None None None None None None None None None None Bozic None None None None None Over $100,000 None None None None None Over $100,000 Dennis Garn None None None None None None None $10,001- 50,000 None None None Over $100,000 Hedien None None None None None Over $100,000 None None None None None Over $100,000 Johnson None None None None None None None None None None None Over $100,000 Kearns(1) None None None None None None None None None None None Over $100,000 Klein None None None None None None None None None None None None Nugent None None None None None None None None None None None Over $100,000 Reed None None None None None None None None None None None None Reid(1) None None None None None None None None None None None Over $100,000 (1) Includes the total amount of compensation deferred by the Trustee at his election pursuant to a deferred compensation plan. Such deferred compensation is placed in a deferral account and deemed to be invested in one or more of the Retail Funds or Institutional Funds (or portfolios thereof) that are offered as investment optionsan open-end diversified management investment company registered under the plan. As of March 31, 2006, the value (including interest) of the deferral accounts for Messrs. Kearns and Reid was $874,964 and $800,512, respectively, pursuant to the deferred compensation plan. EXHIBIT C Set forth in the table below is information regarding Board and Committee meetings held during each Fund’s most recently completed fiscal year end. Fund Fiscal Year End Number of Board Meetings Held Number of Independent Trustee Meetings Held Number of Audit Committee Meetings Held Number of Governance Committee Meetings Held Number of Insurance Committee Meetings Held ACTIVE ASSETS CALIFORNIA TAX-FREE FUND 6/30/05 21 3 9 2 7 ACTIVE ASSETS GOVERNMENT SECURITIES FUND 6/30/05 21 3 9 2 7 ACTIVE ASSETS INSTITUTIONAL GOVERNMENT SECURITIES FUND 6/30/05 21 3 9 2 7 ACTIVE ASSETS INSTITUTIONAL MONEY FUND 6/30/05 21 3 9 2 7 ACTIVE ASSETS MONEY FUND 6/30/05 21 3 9 2 7 ACTIVE ASSETS TAX-FREE FUND 6/30/05 21 3 9 2 7 CALIFORNIA TAX-FREE DAILY INCOME FUND 12/31/05 15 3 8 2 6 LIQUID ASSET FUND 8/31/05 14 3 9 3 6 NEW YORK MUNICIPAL MONEY MARKET FUND 12/31/05 15 3 8 2 6 TAX-FREE DAILY INCOME FUND 12/31/05 15 3 8 2 6 U.S. GOVERNMENT MONEY MARKET FUND 1/31/06 14 3 7 1 5 Schedule A JOINT GOVERNANCE COMMITTEE CHARTER OF THE MORGAN STANLEY RETAIL AND INSTITUTIONAL FUNDS AS ADOPTED ON JULY 31, 2003 AND AS AMENDED ON APRIL 22, 2004 1.  MISSION STATEMENT The Governance Committee (the ‘‘Governance Committee’’) is a committee of the Board of Trustees/Directors (referred to herein as the ‘‘Trustees’’ and collectively as the ‘‘Board’’) of each Fund listed in the attached Exhibit A .. The purpose of the Governance Committee is to: (1) evaluate the suitability of potential candidates for election to the Board and recommend candidates for nomination by the Independent Trustees (as defined below); (2) develop and recommend to the Board a set of corporate governance principles applicable to the Fund, monitor corporate governance matters and make recommendations to the Board and act as the administrative committee with respect to Board policies and procedures, and committee policies and procedures; and (3) oversee periodic evaluations of the Board and any committees of the Board. 2.  COMPOSITION The Governance Committee shall be comprised of three or more Trustees of the Board. Governance Committee members shall be designated by the full Board, and the manner of selection of the Governance Committee chair shall also be designated by the full Board. Each member of the Governance Committee shall be an independent director or trustee. A person shall be considered to be independent if he or she: (a) is independent as defined in New York Stock Exchange Listed Company Standard 303.01 (2) and (3); (b) is a ‘‘disinterested person’’ as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended;amended (the “Investment Company Act”), is intended to accomplish the complete liquidation of the Fund and (c) doesthe redemption of all of the issued and outstanding shares of the Fund in conformity with the provisions of the Investment Company Act, the Securities Act of 1933, as amended (the “Securities Act”), the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), including but not accept, directlylimited to Section 331 or indirectly,Section 332 of the Internal Revenue Code, as the case may be, and the Fund’s Declaration of Trust, dated December 27, 1989, as amended (the “Declaration of Trust”), and under Massachusetts law. WHEREAS, the Fund’s Board of Trustees (the “Board”) has deemed it advisable and in the best interests of the Fund and its shareholders for the Fund to liquidate its assets and to redeem all of its issued and outstanding shares and the Board, on June 16-17, 2020, considered the matter and authorized such liquidation and such redemption, all pursuant to this Plan, and subject to the approval of the Fund’s shareholders. NOW, THEREFORE, the liquidation of the Fund and the redemption of all of the issued and outstanding shares of the Fund shall be carried out in the manner hereinafter set forth: 1.Effective Date of Plan.  This Plan shall be and become effective upon written notice by the Trustees, or their designees, to all of the shareholders of the Fund and the approval of the Plan by such shareholders (the “Effective Date”).  Such notice to the shareholders of the Fund shall comply with Section 6.9(j) of the Declaration of Trust relating to the Trustees’ power to liquidate a series of the Fund, subject to the approval of shareholders of the Fund, and Section 6.7 of the Declaration of Trust relating to notices to shareholders. 2.Cessation of Business.  After the Effective Date, the Fund shall not engage in any consulting, advisorybusiness activities except for the purpose of winding up its business and affairs, preserving the value of its assets and distributing its assets to its shareholders in redemption of the issued and outstanding shares of the Fund in accordance with the provisions of this Plan after the payment to (or reservation of assets for payment to) all creditors of the Fund; provided that the Fund shall, prior to the making of the final liquidating distribution, continue to honor requests for the purchase and redemption of shares as permitted by the Declaration of Trust and the Fund’s prospectus, as amended and supplemented, and may, as determined to be appropriate by the Board, make payment of dividends and other distributions to shareholders and permit the reinvestment thereof in additional shares, as applicable. 3.Liquidation of Assets.  After the Effective Date, the Fund shall cause the liquidation of its assets to cash form as practicable, consistent with the terms of the Plan. 4.Payment of Debts.  As soon as practicable after the Effective Date, the Fund shall determine and pay (or reserve sufficient amounts to pay) the amount of all known or reasonably ascertainable liabilities of the Fund incurred or expected to be incurred prior to the date of the liquidating distribution provided in Section 5 below. 5.Liquidating Distribution.  As soon as practicable after the Effective Date, the Fund will mail or wire, as applicable, the following to each shareholder of record who has not redeemed its shares:  (i) one or more liquidating distributions equal to the shareholder’s proportionate interest in the remaining assets of the Fund (after the payments and creation of the reserves contemplated by Section 4 above) in redemption of all of the issued and outstanding shares of the Fund held by such shareholder, and (ii) information concerning the sources of the liquidating distribution. 6.Expenses of Liquidation.  Except as may be otherwise agreed to between the Fund and its investment adviser, Morgan Stanley Investment Management Inc., all expenses incurred by or allocable to the Fund in carrying out this Plan, liquidating the Fund and redeeming the issued and outstanding shares of the Fund shall be borne by the Fund. 7.De-Registration Under the Investment Company Act.  As soon as practicable after the complete liquidation of the Fund and the redemption of all of the issued and outstanding shares of the Fund, the Fund shall prepare and file a Exhibit A-1 Form N-8F with the Securities and Exchange Commission and take such other actions as may be necessary in order to de-register the Fund under the Investment Company Act.  The Fund shall also file, if required, a final Form N-CEN with the Securities and Exchange Commission. 8.Power of the Board of Trustees.  The Board and, subject to the general direction of the Board, the officers of the Fund shall have authority to do or authorize any and all acts and things as provided for in this Plan and any and all such further acts and things as the Board or such officers, as the case may be, consider necessary or desirable to carry out the purposes of this Plan, including without limitation, the execution and filing of all certificates, documents, notices, information returns, tax returns, forms, and other papers which may be necessary or appropriate to implement this Plan or which may be required by the provisions of the Investment Company Act, the Securities Act, the Internal Revenue Code and applicable Massachusetts law. The death, resignation or other compensatory fee fromdisability of any trustee or any officer of the Fund shall not impair the authority of the surviving or remaining trustees or officers to exercise any of the Fundspowers provided for in this Plan. 9.Amendment or their investment advisor or any affiliated personAbandonment of the advisor, other than fees from the Funds for serving as a member of the Funds' Boards or Committees of the Boards. Such independent directors or trustees are referred to herein as the ‘‘Independent Trustees.’’ 3.  MEETINGS OF THE GOVERNANCE COMMITTEE Plan.  The Governance Committee shall fix its own rules of procedure, which shall be consistent with the Fund's organizational documents and this Governance Committee Charter. The Governance Committee shall meet at such times as may be determined as appropriate by the Committee. The Governance 1 This Joint Governance Committee has been adopted by each Fund. Solely for the sake of clarity and simplicity, this Joint Governance Committee Charter has been drafted as if there is a single Fund, a single Governance Committee and a single board. The terms ‘‘Governance Committee,’’ ‘‘Trustees’’ and ‘‘Board’’ mean the Governance Committee, Trustees and the Board of each Fund, respectively, unless the context otherwise requires. The Governance Committee, Trustees and the Board of each Fund, however, shall act separately and in the best interests of its respective Fund. Sch A-1 Committee, in its discretion, may ask Trustees, members of management or others, whose advice and counsel are sought by the Governance Committee, to attend its meetings (or portions thereof) and to provide such pertinent information as the Governance Committee requests. The Governance Committee shall cause to be maintained minutes of all meetings and records to those meetings and provide copies of such minutes to the Board and the Fund. 4.  AUTHORITY The Governance Committee shall have the authority to carry out its duties and responsibilitiesauthorize such variations from or amendments to the provisions of this Plan (other than the terms of the liquidating distribution) as set forth in this Governance Committee Charter. 5.  GOALS, DUTIES AND RESPONSIBILITIES OF THE GOVERNANCE COMMITTEE In carrying out its duties and responsibilities, the Governance Committee's policies and procedures will remain flexible, so that it may be in a positionnecessary or appropriate to react or respond to changing circumstances or conditions. The following areeffect the duties and responsibilitiescomplete liquidation of the Governance Committee: a.  Board Candidates and Nominees The Governance Committee shall have the following goals and responsibilities with respect to Board candidates and nominees: i.  evaluate the suitability of potential trustee/director candidates proposed by Trustees, shareholders or others; ii.  recommend, for nomination by the Independent Trustees, candidates for election as an Independent Trustee by the shareholders or appointment by the Board, as the case may be, pursuant to the Fund's organizational documents. Persons recommended by the Governance Committee shall possess such knowledge, experience, skills, expertise and diversity so as to enhance the Board's ability to manage and direct the affairs and business of the Fund, including, when applicable, to enhance the ability of committees of the Board to fulfill their duties and/or to satisfy any independence requirements imposed by law, regulation or any listing requirements of the New York Stock Exchange (‘‘NYSE’’) as applicable to the Fund; and iii.  review the suitability for continued service as a trustee/director of each Independent Trustee when his or her term expires and at such other times as the Governance Committee deems necessary or appropriate, and to recommend whether or not the Independent Trustee should be re-nominated by the Independent Trustees. b.  Corporate Governance The Governance Committee shall have the following goals and principles with respect to Board corporate governance: i.  monitor corporate governance principles for the Fund, which shall be consistent with any applicable laws, regulations and listing standards, considering, but not limited to, the following: (1)  trustee/director qualification standards to reflect the independence requirements of the Sarbanes-Oxley Act of 2002, as amended (‘‘SOX’’) and the rules thereunder, the Investment Company Act of 1940, as amended (‘‘the 1940 Act’’), and the NYSE; Sch A-2 (2)  trustee/director duties and responsibilities; (3)  trustee/director access to management, and, as necessary and appropriate, independent advisers; and (4)  trustee/director orientation and continuing education; ii.  review periodically the corporate governance principles adopted by the Board to assure that they are appropriate for the Fund, and comply with the requirements of SOX, the 1940 Act and the NYSE, and to recommend any desirable changes to the Board; iii.  consider other corporate governance issues that arise from time to time, and to develop appropriate recommendations for the Board; and c.  Periodic Evaluations The Governance Committee shall be responsible for overseeing the evaluationdistribution of the Board as a whole and each Committee. The Governance Committee shall establish procedures to allow it to exercise this oversight function. In conducting this review, the Governance Committee shall evaluate whether the Board appropriately addresses the matters that are or should be within its scope pursuant to the set of corporate governance principles adopted by the Governance Committee. The Governance Committee shall address matters that the Governance Committee considers relevant to the Board's performance, including at least the following: the adequacy, appropriateness and quality of the information and recommendations presented by managementassets of the Fund to the Board, and whether the number and length of meetingsits shareholders in redemption of the Board were adequate for the Board to complete its work in a thoroughissued and thoughtful manner. The Governance Committee shall report to the Board on the results of its evaluation, including any recommended changes to the principles of corporate governance, and any recommended changes to the Fund's or the Board's or a Committee's policies or procedures. This report may be written or oral. 6.  EVALUATION OF THE GOVERNANCE COMMITTEE The Governance Committee shall, on an annual basis, evaluate its performance under this Joint Governance Committee Charter. In conducting this review, the Governance Committee shall evaluate whether this Joint Governance Committee Charter appropriately addresses the matters that are or should be within its scope. The Governance Committee shall address matters that the Governance Committee considers relevant to its performance, including at least the following: the adequacy, appropriateness and quality of the information and recommendations presented by the Governance Committee to the Board, and whether the number and length of meetings of the Governance Committee were adequate for the Governance Committee to complete its work in a thorough and thoughtful manner. The Governance Committee shall report to the Board on the results of its evaluation, including any recommended amendments to this Joint Governance Committee Charter, and any recommended changes to the Fund's or the Board's policies or procedures. This report may be written or oral. 7.  INVESTIGATIONS AND STUDIES; OUTSIDE ADVISERS The Governance Committee may conduct or authorize investigations into or studies of matters within the Governance Committee's scope of responsibilities, and may retain, at the Fund's expense, such independent counsel or other advisers as it deems necessary. Sch A-3 PROXY CARD ACTIVE ASSETS CALIFORNIA TAX-FREE TRUST C/O MORGAN STANLEY INVESTMENT ADVISORS INC. 1221 AVENUE OF THE AMERICAS NEW YORK, NEW YORK 10020 THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF TRUSTEES The undersigned hereby constitutes and appoints RONALD E. ROBISON, STEFANIE V. CHANG YU and BARRY FINK, and each of them, as proxies for the undersigned, with full power of substitution and resubstitution, and hereby authorizes said proxies, and each of them, to represent and vote, as designated on the reverse side, all stock of the above Fund held of record by the undersigned on May 30, 2006 at the Special Meeting of Shareholders to be held on Tuesday, August 1, 2006 at 1221 Avenue of the Americas, New York, New York 10020, and at any adjournment thereof. The undersigned hereby revokes any and all proxies with respect to such stock heretofore given by the undersigned. THE MATTERS BEING CONSIDERED HAVE BEEN PROPOSED BY MANAGEMENT. THE MATTERS BEING PROPOSED ARE RELATED TO, BUT NOT CONDITIONED ON, THE APPROVAL OF EACH OTHER. (CONTINUED AND TO BE SIGNED AND DATED ON REVERSE SIDE) SEE REVERSE SIDE SPECIAL MEETING OF SHAREHOLDERS OF ACTIVE ASSETS CALIFORNIA TAX-FREE TRUST AUGUST 1, 2006 PROXY VOTING INSTRUCTIONS MAIL - Date, sign and mail your Proxy Card in the envelope provided as soon as possible. -OR- TELEPHONE - Call toll-free 1-800-PROXIES (1-800-776-9437) from any touchtone telephone and follow the instructions. Have your Control number (or "Company number") and Proxy Card available when you call. Company Number Account Number Control Number INTERNET - Go to the website: https://vote.proxy-direct.com and follow the on-screen directions. Please detach and mail in the envelope provided IF you are not voting via telephone or internet. PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE. PLEASE MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN HERE [X] 1. ELECTION OF THE FOLLOWING NOMINEES AS TRUSTEES: NOMINEES: Frank L. Bowman, Kathleen A. Dennis, James F. Higgins, Joseph J. Kearns, Michael F. Klein, W. Allen Reed and Fergus Reid [ ] FOR ALL NOMINEES [ ] AGAINST ALL NOMINEES [ ] FOR ALL EXCEPT: (See instructions below) [ ] Frank L. Bowman [ ] Kathleen A. Dennis [ ] James F. Higgins [ ] Joseph J. Kearns [ ] Michael F. Klein [ ] W. Allen Reed [ ] Fergus Reid INSTRUCTION: To withhold authority to vote for any individual nominee(s), mark "FOR ALL EXCEPT" and fill in the circle next to each nominee you wish to withhold, as shown here: [ ] 2. To eliminate certain fundamental investment restrictions. [ ] FOR ALL [ ] AGAINST ALL [ ] FOR ALL EXCEPT ------------------------------ [ ] ABSTAIN INSTRUCTION: To withhold authority to vote for any individual fundamental investment restriction, mark "FOR ALL EXCEPT" and write the letter(s) on the line above corresponding to the fundamental investment restriction(s) for which you want to withhold authority. (a) Pledging Assets Policy (b) Margin Policy (c) Oil & Gas Policy (d) Director/Officer Ownership Policy (e) Exercising Control Policy (f) Common Stock Policy 3. To modify certain fundamental investment restrictions. [ ] FOR ALL [ ] AGAINST ALL [ ] FOR ALL EXCEPT [ ] ABSTAIN INSTRUCTION: To withhold authority to vote for any individual fundamental investment restriction, mark "FOR ALL EXCEPT" and write the letter(s) on the line above corresponding to the fundamental investment restriction(s) for which you want to withhold authority. (a) Diversification Policy (b) Borrowing Policy (c) Loan Policy (d) Commodities Policy (e) Senior Securities Policy 4. To reclassify certain fundamental policies as non-fundamental policies. [ ] FOR ALL [ ] AGAINST ALL [ ] FOR ALL EXCEPT ------------------------------ [ ] ABSTAIN INSTRUCTION: To withhold authority to vote for any individual fundamental investment restriction, mark "FOR ALL EXCEPT" and write the letter(s) on the line above corresponding to the fundamental investment restriction(s) for which you want to withhold authority. (a) Short Sales Policy (b) Purchasing Other Investment (c) Puts/Calls Policy -------------------------------------------------------------------------------- To change the address on your account, please check the box at right and indicate your new address in the address space above. Please note that changes to the registered name(s) on the account may not be submitted via this method. [ ] -------------------------------------------------------------------------------- THIS PROXY CARD WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED SHAREHOLDER, AND, IN THE DISCRETION OF SUCH PROXIES, UPON ANY AND ALL OTHER BUSINESS AS MAY PROPERLY COME BEFORE THE MEETING OR ANY ADJOURNMENT THEREOF. IF NO DIRECTION IS MADE, THIS PROXY CARD WILL BE VOTED FOR THE ELECTION OF THE NOMINEES AS TRUSTEES FOR THE FUND. PLEASE MARK, SIGN, DATE AND RETURN THIS PROXY CARD PROMPTLY USING THE ENCLOSED ENVELOPE. Signature of Shareholder: Date: --------------------------- ------------- Signature of Shareholder: Date: --------------------------- ------------- NOTE: PLEASE SIGN EXACTLY AS YOUR NAME APPEARS. WHEN SHARES ARE HELD BY JOINT TENANTS, EACH JOINT TENANT MUST SIGN. When signing as attorney, executor, administrator, trustee, guardian or custodian, please sign full title as such. If a corporation, please sign full corporate name by authorized officer and indicate the signer's office. If a partnership, please sign in partnership name. PROXY CARD ACTIVE ASSETS GOVERNMENT SECURITIES TRUST C/O MORGAN STANLEY INVESTMENT ADVISORS INC. 1221 AVENUE OF THE AMERICAS NEW YORK, NEW YORK 10020 THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF TRUSTEES The undersigned hereby constitutes and appoints RONALD E. ROBISON, STEFANIE V. CHANG YU and BARRY FINK, and each of them, as proxies for the undersigned, with full power of substitution and resubstitution, and hereby authorizes said proxies, and each of them, to represent and vote, as designated on the reverse side, all stock of the above Fund held of record by the undersigned on May 30, 2006 at the Special Meeting of Shareholders to be held on Tuesday, August 1, 2006 at 1221 Avenue of the Americas, New York, New York 10020, and at any adjournment thereof. The undersigned hereby revokes any and all proxies with respect to such stock heretofore given by the undersigned. THE MATTERS BEING CONSIDERED HAVE BEEN PROPOSED BY MANAGEMENT. THE MATTERS BEING PROPOSED ARE RELATED TO, BUT NOT CONDITIONED ON, THE APPROVAL OF EACH OTHER. (CONTINUED AND TO BE SIGNED AND DATED ON REVERSE SIDE) SEE REVERSE SIDE SPECIAL MEETING OF SHAREHOLDERS OF ACTIVE ASSETS GOVERNMENT SECURITIES TRUST AUGUST 1, 2006 PROXY VOTING INSTRUCTIONS MAIL - Date, sign and mail your Proxy Card in the envelope provided as soon as possible. -OR- TELEPHONE - Call toll-free 1-800-PROXIES (1-800-776-9437) from any touchtone telephone and follow the instructions. Have your Control number (or "Company number") and Proxy Card available when you call. Company Number Account Number Control Number INTERNET - Go to the website: https://vote.proxy-direct.com and follow the on-screen directions. Please detach and mail in the envelope provided IF you are not voting via telephone or internet. PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE. PLEASE MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN HERE [X] 1. ELECTION OF THE FOLLOWING NOMINEES AS TRUSTEES: NOMINEES: Frank L. Bowman, Kathleen A. Dennis, James F. Higgins, Joseph J. Kearns, Michael F. Klein, W. Allen Reed and Fergus Reid [ ] FOR ALL NOMINEES [ ] AGAINST ALL NOMINEES [ ] FOR ALL EXCEPT: (See instructions below) [ ] Frank L. Bowman [ ] Kathleen A. Dennis [ ] James F. Higgins [ ] Joseph J. Kearns [ ] Michael F. Klein [ ] W. Allen Reed [ ] Fergus Reid INSTRUCTION: To withhold authority to vote for any individual nominee(s), mark "FOR ALL EXCEPT" and fill in the circle next to each nominee you wish to withhold, as shown here: [ ] 2. To eliminate certain fundamental investment restrictions. [ ] FOR ALL [ ] AGAINST ALL [ ] FOR ALL EXCEPT ------------------------------ [ ] ABSTAIN INSTRUCTION: To withhold authority to vote for any individual fundamental investment restriction, mark "FOR ALL EXCEPT" and write the letter(s) on the line above corresponding to the fundamental investment restriction(s) for which you want to withhold authority. (a) Pledging Assets Policy (b) Margin Policy (c) Oil & Gas Policy (d) Warrants Policy (e) Common Stock Policy 3. To modify certain fundamental investment restrictions. [ ] FOR ALL [ ] AGAINST ALL [ ] FOR ALL EXCEPT ------------------------------ [ ] ABSTAIN INSTRUCTION: To withhold authority to vote for any individual fundamental investment restriction, mark "FOR ALL EXCEPT" and write the letter(s) on the line above corresponding to the fundamental investment restriction(s) for which you want to withhold authority. (a) Diversification Policy (b) Borrowing Policy (c) Loan Policy (d) Commodities Policy (e) Senior Securities Policy 4. To reclassify certain fundamental policies as non-fundamental policies. [ ] FOR ALL [ ] AGAINST ALL [ ] FOR ALL EXCEPT ------------------------------ [ ] ABSTAIN INSTRUCTION: To withhold authority to vote for any individual fundamental investment restriction, mark "FOR ALL EXCEPT" and write the letter(s) on the line above corresponding to the fundamental investment restriction(s) for which you want to withhold authority. (a) Short Sales Policy (b) Purchasing Other Investment Companies Policy (c) Illiquid/Restricted Securities Policy (d) Puts/Calls Policy -------------------------------------------------------------------------------- To change the address on your account, please check the box at right and indicate your new address in the address space above. Please note that changes to the registered name(s) on the account may not be submitted via this method. [ ] -------------------------------------------------------------------------------- THIS PROXY CARD WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED SHAREHOLDER, AND, IN THE DISCRETION OF SUCH PROXIES, UPON ANY AND ALL OTHER BUSINESS AS MAY PROPERLY COME BEFORE THE MEETING OR ANY ADJOURNMENT THEREOF. IF NO DIRECTION IS MADE, THIS PROXY CARD WILL BE VOTED FOR THE ELECTION OF THE NOMINEES AS TRUSTEES FOR THE FUND. PLEASE MARK, SIGN, DATE AND RETURN THIS PROXY CARD PROMPTLY USING THE ENCLOSED ENVELOPE. Signature of Shareholder: Date: --------------------------- ------------- Signature of Shareholder: Date: --------------------------- ------------- NOTE: PLEASE SIGN EXACTLY AS YOUR NAME APPEARS. WHEN SHARES ARE HELD BY JOINT TENANTS, EACH JOINT TENANT MUST SIGN. When signing as attorney, executor, administrator, trustee, guardian or custodian, please sign full title as such. If a corporation, please sign full corporate name by authorized officer and indicate the signer's office. If a partnership, please sign in partnership name. PROXY CARD ACTIVE ASSETS INSTITUTIONAL GOVERNMENT SECURITIES TRUST C/O MORGAN STANLEY INVESTMENT ADVISORS INC. 1221 AVENUE OF THE AMERICAS NEW YORK, NEW YORK 10020 THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF TRUSTEES The undersigned hereby constitutes and appoints RONALD E. ROBISON, STEFANIE V. CHANG YU and BARRY FINK, and each of them, as proxies for the undersigned, with full power of substitution and resubstitution, and hereby authorizes said proxies, and each of them, to represent and vote, as designated on the reverse side, all stock of the above Fund held of record by the undersigned on May 30, 2006 at the Special Meeting of Shareholders to be held on Tuesday, August 1, 2006 at 1221 Avenue of the Americas, New York, New York 10020, and at any adjournment thereof. The undersigned hereby revokes any and all proxies with respect to such stock heretofore given by the undersigned. THE MATTERS BEING CONSIDERED HAVE BEEN PROPOSED BY MANAGEMENT. THE MATTERS BEING PROPOSED ARE RELATED TO, BUT NOT CONDITIONED ON, THE APPROVAL OF EACH OTHER. (CONTINUED AND TO BE SIGNED AND DATED ON REVERSE SIDE) SEE REVERSE SIDE SPECIAL MEETING OF SHAREHOLDERS OF ACTIVE ASSETS INSTITUTIONAL GOVERNMENT SECURITIES TRUST AUGUST 1, 2006 PROXY VOTING INSTRUCTIONS MAIL - Date, sign and mail your Proxy Card in the envelope provided as soon as possible. -OR- TELEPHONE - Call toll-free 1-800-PROXIES (1-800-776-9437) from any touchtone telephone and follow the instructions. Have your Control number (or "Company number") and Proxy Card available when you call. Company Number Account Number Control Number INTERNET - Go to the website: https://vote.proxy-direct.com and follow the on-screen directions. Please detach and mail in the envelope provided IF you are not voting via telephone or internet. PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE. PLEASE MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN HERE [X] 1. ELECTION OF THE FOLLOWING NOMINEES AS TRUSTEES: NOMINEES: Frank L. Bowman, Kathleen A. Dennis, James F. Higgins, Joseph J. Kearns, Michael F. Klein, W. Allen Reed and Fergus Reid [ ] FOR ALL NOMINEES [ ] AGAINST ALL NOMINEES [ ] FOR ALL EXCEPT: (See instructions below) [ ] Frank L. Bowman [ ] Kathleen A. Dennis [ ] James F. Higgins [ ] Joseph J. Kearns [ ] Michael F. Klein [ ] W. Allen Reed [ ] Fergus Reid INSTRUCTION: To withhold authority to vote for any individual nominee(s), mark "FOR ALL EXCEPT" and fill in the circle next to each nominee you wish to withhold, as shown here: [ ] 2. To eliminate certain fundamental investment restrictions. [ ] FOR ALL [ ] AGAINST ALL [ ] FOR ALL EXCEPT ------------------------------ [ ] ABSTAIN INSTRUCTION: To withhold authority to vote for any individual fundamental investment restriction, mark "FOR ALL EXCEPT" and write the letter(s) on the line above corresponding to the fundamental investment restriction(s) for which you want to withhold authority. (a) Oil & Gas Policy (b) Common Stock Policy 3. To modify certain fundamental investment restrictions. [ ] FOR ALL [ ] AGAINST ALL [ ] FOR ALL EXCEPT ------------------------------ [ ] ABSTAIN INSTRUCTION: To withhold authority to vote for any individual fundamental investment restriction, mark "FOR ALL EXCEPT" and write the letter(s) on the line above corresponding to the fundamental investment restriction(s) for which you want to withhold authority. (a) Diversification Policy (b) Borrowing Policy (c) Loan Policy (d) Commodities Policy (e) Senior Securities Policy -------------------------------------------------------------------------------- To change the address on your account, please check the box at right and indicate your new address in the address space above. Please note that changes to the registered name(s) on the account may not be submitted via this method. [ ] -------------------------------------------------------------------------------- THIS PROXY CARD WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED SHAREHOLDER, AND, IN THE DISCRETION OF SUCH PROXIES, UPON ANY AND ALL OTHER BUSINESS AS MAY PROPERLY COME BEFORE THE MEETING OR ANY ADJOURNMENT THEREOF. IF NO DIRECTION IS MADE, THIS PROXY CARD WILL BE VOTED FOR THE ELECTION OF THE NOMINEES AS TRUSTEES FOR THE FUND. PLEASE MARK, SIGN, DATE AND RETURN THIS PROXY CARD PROMPTLY USING THE ENCLOSED ENVELOPE. Signature of Shareholder: Date: --------------------------- ------------- Signature of Shareholder: Date: --------------------------- ------------- NOTE: PLEASE SIGN EXACTLY AS YOUR NAME APPEARS. WHEN SHARES ARE HELD BY JOINT TENANTS, EACH JOINT TENANT MUST SIGN. When signing as attorney, executor, administrator, trustee, guardian or custodian, please sign full title as such. If a corporation, please sign full corporate name by authorized officer and indicate the signer's office. If a partnership, please sign in partnership name. PROXY CARD ACTIVE ASSETS INSTITUTIONAL MONEY TRUST C/O MORGAN STANLEY INVESTMENT ADVISORS INC. 1221 AVENUE OF THE AMERICAS NEW YORK, NEW YORK 10020 THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF TRUSTEES The undersigned hereby constitutes and appoints RONALD E. ROBISON, STEFANIE V. CHANG YU and BARRY FINK, and each of them, as proxies for the undersigned, with full power of substitution and resubstitution, and hereby authorizes said proxies, and each of them, to represent and vote, as designated on the reverse side, all stock of the above Fund held of record by the undersigned on May 30, 2006 at the Special Meeting of Shareholders to be held on Tuesday, August 1, 2006 at 1221 Avenue of the Americas, New York, New York 10020, and at any adjournment thereof. The undersigned hereby revokes any and all proxies with respect to such stock heretofore given by the undersigned. THE MATTERS BEING CONSIDERED HAVE BEEN PROPOSED BY MANAGEMENT. THE MATTERS BEING PROPOSED ARE RELATED TO, BUT NOT CONDITIONED ON, THE APPROVAL OF EACH OTHER. (CONTINUED AND TO BE SIGNED AND DATED ON REVERSE SIDE) SEE REVERSE SIDE SPECIAL MEETING OF SHAREHOLDERS OF ACTIVE ASSETS INSTITUTIONAL MONEY TRUST AUGUST 1, 2006 PROXY VOTING INSTRUCTIONS MAIL - Date, sign and mail your Proxy Card in the envelope provided as soon as possible. -OR- TELEPHONE - Call toll-free 1-800-PROXIES (1-800-776-9437) from any touchtone telephone and follow the instructions. Have your Control number (or "Company number") and Proxy Card available when you call. Company Number Account Number Control Number INTERNET - Go to the website: https://vote.proxy-direct.com and follow the on-screen directions. Please detach and mail in the envelope provided IF you are not voting via telephone or internet. PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE. PLEASE MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN HERE [X] 1. ELECTION OF THE FOLLOWING NOMINEES AS TRUSTEES: NOMINEES: Frank L. Bowman, Kathleen A. Dennis, James F. Higgins, Joseph J. Kearns, Michael F. Klein, W. Allen Reed and Fergus Reid [ ] FOR ALL NOMINEES [ ] AGAINST ALL NOMINEES [ ] FOR ALL EXCEPT: (See instructions below) [ ] Frank L. Bowman [ ] Kathleen A. Dennis [ ] James F. Higgins [ ] Joseph J. Kearns [ ] Michael F. Klein [ ] W. Allen Reed [ ] Fergus Reid INSTRUCTION: To withhold authority to vote for any individual nominee(s), mark "FOR ALL EXCEPT" and fill in the circle next to each nominee you wish to withhold, as shown here: [ ] 2. To eliminate certain fundamental investment restrictions. [ ] FOR ALL [ ] AGAINST ALL [ ] FOR ALL EXCEPT ------------------------------ [ ] ABSTAIN INSTRUCTION: To withhold authority to vote for any individual fundamental investment restriction, mark "FOR ALL EXCEPT" and write the letter(s) on the line above corresponding to the fundamental investment restriction(s) for which you want to withhold authority. (a) Oil & Gas Policy (b) Common Stock Policy 3. To modify certain fundamental investment restrictions. [ ] FOR ALL [ ] AGAINST ALL [ ] FOR ALL EXCEPT ------------------------------ [ ] ABSTAIN INSTRUCTION: To withhold authority to vote for any individual fundamental investment restriction, mark "FOR ALL EXCEPT" and write the letter(s) on the line above corresponding to the fundamental investment restriction(s) for which you want to withhold authority. (a) Diversification Policy (b) Borrowing Policy (c) Loan Policy (d) Commodities Policy (e) Senior Securities Policy -------------------------------------------------------------------------------- To change the address on your account, please check the box at right and indicate your new address in the address space above. Please note that changes to the registered name(s) on the account may not be submitted via this method. [ ] -------------------------------------------------------------------------------- THIS PROXY CARD WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED SHAREHOLDER, AND, IN THE DISCRETION OF SUCH PROXIES, UPON ANY AND ALL OTHER BUSINESS AS MAY PROPERLY COME BEFORE THE MEETING OR ANY ADJOURNMENT THEREOF. IF NO DIRECTION IS MADE, THIS PROXY CARD WILL BE VOTED FOR THE ELECTION OF THE NOMINEES AS TRUSTEES FOR THE FUND. PLEASE MARK, SIGN, DATE AND RETURN THIS PROXY CARD PROMPTLY USING THE ENCLOSED ENVELOPE. Signature of Shareholder: Date: --------------------------- ------------- Signature of Shareholder: Date: --------------------------- ------------- NOTE: PLEASE SIGN EXACTLY AS YOUR NAME APPEARS. WHEN SHARES ARE HELD BY JOINT TENANTS, EACH JOINT TENANT MUST SIGN. When signing as attorney, executor, administrator, trustee, guardian or custodian, please sign full title as such. If a corporation, please sign full corporate name by authorized officer and indicate the signer's office. If a partnership, please sign in partnership name. PROXY CARD ACTIVE ASSETS MONEY TRUST C/O MORGAN STANLEY INVESTMENT ADVISORS INC. 1221 AVENUE OF THE AMERICAS NEW YORK, NEW YORK 10020 THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF TRUSTEES The undersigned hereby constitutes and appoints RONALD E. ROBISON, STEFANIE V. CHANG YU and BARRY FINK, and each of them, as proxies for the undersigned, with full power of substitution and resubstitution, and hereby authorizes said proxies, and each of them, to represent and vote, as designated on the reverse side, all stock of the above Fund held of record by the undersigned on May 30, 2006 at the Special Meeting of Shareholders to be held on Tuesday, August 1, 2006 at 1221 Avenue of the Americas, New York, New York 10020, and at any adjournment thereof. The undersigned hereby revokes any and all proxies with respect to such stock heretofore given by the undersigned. THE MATTERS BEING CONSIDERED HAVE BEEN PROPOSED BY MANAGEMENT. THE MATTERS BEING PROPOSED ARE RELATED TO, BUT NOT CONDITIONED ON, THE APPROVAL OF EACH OTHER. (CONTINUED AND TO BE SIGNED AND DATED ON REVERSE SIDE) SEE REVERSE SIDE SPECIAL MEETING OF SHAREHOLDERS OF ACTIVE ASSETS MONEY TRUST AUGUST 1, 2006 PROXY VOTING INSTRUCTIONS MAIL - Date, sign and mail your Proxy Card in the envelope provided as soon as possible. -OR- TELEPHONE - Call toll-free 1-800-PROXIES (1-800-776-9437) from any touchtone telephone and follow the instructions. Have your Control number (or "Company number") and Proxy Card available when you call. Company Number Account Number Control Number INTERNET - Go to the website: https://vote.proxy-direct.com and follow the on-screen directions. Please detach and mail in the envelope provided IF you are not voting via telephone or internet. PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE. PLEASE MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN HERE [X] 1. ELECTION OF THE FOLLOWING NOMINEES AS TRUSTEES: NOMINEES: Frank L. Bowman, Kathleen A. Dennis, James F. Higgins, Joseph J. Kearns, Michael F. Klein, W. Allen Reed and Fergus Reid [ ] FOR ALL NOMINEES [ ] AGAINST ALL NOMINEES [ ] FOR ALL EXCEPT: (See instructions below) [ ] Frank L. Bowman [ ] Kathleen A. Dennis [ ] James F. Higgins [ ] Joseph J. Kearns [ ] Michael F. Klein [ ] W. Allen Reed [ ] Fergus Reid INSTRUCTION: To withhold authority to vote for any individual nominee(s), mark "FOR ALL EXCEPT" and fill in the circle next to each nominee you wish to withhold, as shown here: [ ] 2. To eliminate certain fundamental investment restrictions. [ ] FOR ALL [ ] AGAINST ALL [ ] FOR ALL EXCEPT ------------------------------ [ ] ABSTAIN INSTRUCTION: To withhold authority to vote for any individual fundamental investment restriction, mark "FOR ALL EXCEPT" and write the letter(s) on the line above corresponding to the fundamental investment restriction(s) for which you want to withhold authority. (a) Margin Policy (b) Oil & Gas Policy (c) Warrants Policy (d) Director/Officer Ownership Policy (e) Exercising Control Policy (f) Common Stock Policy (g) Unseasoned Companies Policy (h) Joint Securities Accounts Policy 3. To modify certain fundamental investment restrictions. [ ] FOR ALL [ ] AGAINST ALL [ ] FOR ALL EXCEPT ------------------------------ [ ] ABSTAIN INSTRUCTION: To withhold authority to vote for any individual fundamental investment restriction, mark "FOR ALL EXCEPT" and write the letter(s) on the line above corresponding to the fundamental investment restriction(s) for which you want to withhold authority. (a) Diversification Policy (b) Borrowing Policy (c) Loan Policy (d) Commodities Policy (e) Senior Securities Policy 4. To reclassify certain fundamental policies as non-fundamental policies. [ ] FOR ALL [ ] AGAINST ALL [ ] FOR ALL EXCEPT ------------------------------ [ ] ABSTAIN INSTRUCTION: To withhold authority to vote for any individual fundamental investment restriction, mark "FOR ALL EXCEPT" and write the letter(s) on the line above corresponding to the fundamental investment restriction(s) for which you want to withhold authority. (a) Short Sales Policy (b) Purchasing Other Investment Companies Policy (c) Illiquid/Restricted Securities Policy (d) Puts/Calls Policy -------------------------------------------------------------------------------- To change the address on your account, please check the box at right and indicate your new address in the address space above. Please note that changes to the registered name(s) on the account may not be submitted via this method. [ ] -------------------------------------------------------------------------------- THIS PROXY CARD WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED SHAREHOLDER, AND, IN THE DISCRETION OF SUCH PROXIES, UPON ANY AND ALL OTHER BUSINESS AS MAY PROPERLY COME BEFORE THE MEETING OR ANY ADJOURNMENT THEREOF. IF NO DIRECTION IS MADE, THIS PROXY CARD WILL BE VOTED FOR THE ELECTION OF THE NOMINEES AS TRUSTEES FOR THE FUND. PLEASE MARK, SIGN, DATE AND RETURN THIS PROXY CARD PROMPTLY USING THE ENCLOSED ENVELOPE. Signature of Shareholder: Date: --------------------------- ------------- Signature of Shareholder: Date: --------------------------- ------------- NOTE: PLEASE SIGN EXACTLY AS YOUR NAME APPEARS. WHEN SHARES ARE HELD BY JOINT TENANTS, EACH JOINT TENANT MUST SIGN. When signing as attorney, executor, administrator, trustee, guardian or custodian, please sign full title as such. If a corporation, please sign full corporate name by authorized officer and indicate the signer's office. If a partnership, please sign in partnership name. PROXY CARD ACTIVE ASSETS TAX-FREE TRUST C/O MORGAN STANLEY INVESTMENT ADVISORS INC. 1221 AVENUE OF THE AMERICAS NEW YORK, NEW YORK 10020 THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF TRUSTEES The undersigned hereby constitutes and appoints RONALD E. ROBISON, STEFANIE V. CHANG YU and BARRY FINK, and each of them, as proxies for the undersigned, with full power of substitution and resubstitution, and hereby authorizes said proxies, and each of them, to represent and vote, as designated on the reverse side, all stock of the above Fund held of record by the undersigned on May 30, 2006 at the Special Meeting of Shareholders to be held on Tuesday, August 1, 2006 at 1221 Avenue of the Americas, New York, New York 10020, and at any adjournment thereof. The undersigned hereby revokes any and all proxies with respect to such stock heretofore given by the undersigned. THE MATTERS BEING CONSIDERED HAVE BEEN PROPOSED BY MANAGEMENT. THE MATTERS BEING PROPOSED ARE RELATED TO, BUT NOT CONDITIONED ON, THE APPROVAL OF EACH OTHER. (CONTINUED AND TO BE SIGNED AND DATED ON REVERSE SIDE) SEE REVERSE SIDE SPECIAL MEETING OF SHAREHOLDERS OF ACTIVE ASSETS TAX-FREE TRUST AUGUST 1, 2006 PROXY VOTING INSTRUCTIONS MAIL - Date, sign and mail your Proxy Card in the envelope provided as soon as possible. -OR- TELEPHONE - Call toll-free 1-800-PROXIES (1-800-776-9437) from any touchtone telephone and follow the instructions. Have your Control number (or "Company number") and Proxy Card available when you call. Company Number Account Number Control Number INTERNET - Go to the website: https://vote.proxy-direct.com and follow the on-screen directions. Please detach and mail in the envelope provided IF you are not voting via telephone or internet. PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE. PLEASE MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN HERE [X] 1. ELECTION OF THE FOLLOWING NOMINEES AS TRUSTEES: NOMINEES: Frank L. Bowman, Kathleen A. Dennis, James F. Higgins, Joseph J. Kearns, Michael F. Klein, W. Allen Reed and Fergus Reid [ ] FOR ALL NOMINEES [ ] AGAINST ALL NOMINEES [ ] FOR ALL EXCEPT: (See instructions below) [ ] Frank L. Bowman [ ] Kathleen A. Dennis [ ] James F. Higgins [ ] Joseph J. Kearns [ ] Michael F. Klein [ ] W. Allen Reed [ ] Fergus Reid INSTRUCTION: To withhold authority to vote for any individual nominee(s), mark "FOR ALL EXCEPT" and fill in the circle next to each nominee you wish to withhold, as shown here: [ ] 2. To eliminate certain fundamental investment restrictions. [ ] FOR ALL [ ] AGAINST ALL [ ] FOR ALL EXCEPT ------------------------------ [ ] ABSTAIN INSTRUCTION: To withhold authority to vote for any individual fundamental investment restriction, mark "FOR ALL EXCEPT" and write the letter(s) on the line above corresponding to the fundamental investment restriction(s) for which you want to withhold authority. (a) Pledging Assets Policy (b) Margin Policy (c) Oil & Gas Policy (d) Director/Officer Ownership Policy (e) Exercising Control Policy (f) Common Stock Policy (g) Unseasoned Companies Policy 3. To modify certain fundamental investment restrictions. [ ] FOR ALL [ ] AGAINST ALL [ ] FOR ALL EXCEPT ------------------------------ [ ] ABSTAIN INSTRUCTION: To withhold authority to vote for any individual fundamental investment restriction, mark "FOR ALL EXCEPT" and write the letter(s) on the line above corresponding to the fundamental investment restriction(s) for which you want to withhold authority. (a) Diversification Policy (b) Borrowing Policy (c) Loan Policy (d) Commodities Policy (e) Senior Securities Policy 4. To reclassify certain fundamental policies as non-fundamental policies. [ ] FOR ALL [ ] AGAINST ALL [ ] FOR ALL EXCEPT ------------------------------ [ ] ABSTAIN INSTRUCTION: To withhold authority to vote for any individual fundamental investment restriction, mark "FOR ALL EXCEPT" and write the letter(s) on the line above corresponding to the fundamental investment restriction(s) for which you want to withhold authority. (a) Short Sales Policy (b) Purchasing Other Investment Companies Policy (c) Puts/Calls Policy -------------------------------------------------------------------------------- To change the address on your account, please check the box at right and indicate your new address in the address space above. Please note that changes to the registered name(s) on the account may not be submitted via this method. [ ] -------------------------------------------------------------------------------- THIS PROXY CARD WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED SHAREHOLDER, AND, IN THE DISCRETION OF SUCH PROXIES, UPON ANY AND ALL OTHER BUSINESS AS MAY PROPERLY COME BEFORE THE MEETING OR ANY ADJOURNMENT THEREOF. IF NO DIRECTION IS MADE, THIS PROXY CARD WILL BE VOTED FOR THE ELECTION OF THE NOMINEES AS TRUSTEES FOR THE FUND. PLEASE MARK, SIGN, DATE AND RETURN THIS PROXY CARD PROMPTLY USING THE ENCLOSED ENVELOPE. Signature of Shareholder: Date: --------------------------- ------------- Signature of Shareholder: Date: --------------------------- ------------- NOTE: PLEASE SIGN EXACTLY AS YOUR NAME APPEARS. WHEN SHARES ARE HELD BY JOINT TENANTS, EACH JOINT TENANT MUST SIGN. When signing as attorney, executor, administrator, trustee, guardian or custodian, please sign full title as such. If a corporation, please sign full corporate name by authorized officer and indicate the signer's office. If a partnership, please sign in partnership name. PROXY CARD MORGAN STANLEY CALIFORNIA TAX-FREE DAILY INCOME TRUST C/O MORGAN STANLEY INVESTMENT ADVISORS INC. 1221 AVENUE OF THE AMERICAS NEW YORK, NEW YORK 10020 THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF TRUSTEES The undersigned hereby constitutes and appoints RONALD E. ROBISON, STEFANIE V. CHANG YU and BARRY FINK, and each of them, as proxies for the undersigned, with full power of substitution and resubstitution, and hereby authorizes said proxies, and each of them, to represent and vote, as designated on the reverse side, all stock of the above Fund held of record by the undersigned on May 30, 2006 at the Special Meeting of Shareholders to be held on Tuesday, August 1, 2006 at 1221 Avenue of the Americas, New York, New York 10020, and at any adjournment thereof. The undersigned hereby revokes any and all proxies with respect to such stock heretofore given by the undersigned. THE MATTERS BEING CONSIDERED HAVE BEEN PROPOSED BY MANAGEMENT. THE MATTERS BEING PROPOSED ARE RELATED TO, BUT NOT CONDITIONED ON, THE APPROVAL OF EACH OTHER. (CONTINUED AND TO BE SIGNED AND DATED ON REVERSE SIDE) SEE REVERSE SIDE SPECIAL MEETING OF SHAREHOLDERS OF MORGAN STANLEY CALIFORNIA TAX-FREE DAILY INCOME TRUST AUGUST 1, 2006 PROXY VOTING INSTRUCTIONS MAIL - Date, sign and mail your Proxy Card in the envelope provided as soon as possible. -OR- TELEPHONE - Call toll-free 1-800-PROXIES (1-800-776-9437) from any touchtone telephone and follow the instructions. Have your Control number (or "Company number") and Proxy Card available when you call. Company Number Account Number Control Number INTERNET - Go to the website: https://vote.proxy-direct.com and follow the on-screen directions. Please detach and mail in the envelope provided IF you are not voting via telephone or internet. PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE. PLEASE MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN HERE [X] 1. ELECTION OF THE FOLLOWING NOMINEES AS TRUSTEES: NOMINEES: Frank L. Bowman, Kathleen A. Dennis, James F. Higgins, Joseph J. Kearns, Michael F. Klein, W. Allen Reed and Fergus Reid [ ] FOR ALL NOMINEES [ ] AGAINST ALL NOMINEES [ ] FOR ALL EXCEPT: (See instructions below) [ ] Frank L. Bowman [ ] Kathleen A. Dennis [ ] James F. Higgins [ ] Joseph J. Kearns [ ] Michael F. Klein [ ] W. Allen Reed [ ] Fergus Reid INSTRUCTION: To withhold authority to vote for any individual nominee(s), mark "FOR ALL EXCEPT" and fill in the circle next to each nominee you wish to withhold, as shown here: [ ] 2. To eliminate certain fundamental investment restrictions. [ ] FOR ALL [ ] AGAINST ALL [ ] FOR ALL EXCEPT ------------------------------ [ ] ABSTAIN INSTRUCTION: To withhold authority to vote for any individual fundamental investment restriction, mark "FOR ALL EXCEPT" and write the letter(s) on the line above corresponding to the fundamental investment restriction(s) for which you want to withhold authority. (a) Pledging Assets Policy (b) Margin Policy (c) Oil & Gas Policy (d) Director/Officer Ownership Policy (e) Exercising Control Policy (f) Common Stock Policy 3. To modify certain fundamental investment restrictions. [ ] FOR ALL [ ] AGAINST ALL [ ] FOR ALL EXCEPT ------------------------------ [ ] ABSTAIN INSTRUCTION: To withhold authority to vote for any individual fundamental investment restriction, mark "FOR ALL EXCEPT" and write the letter(s) on the line above corresponding to the fundamental investment restriction(s) for which you want to withhold authority. (a) Diversification Policy (b) Borrowing Policy (c) Loan Policy (d) Commodities Policy (e) Senior Securities Policy 4. To reclassify certain fundamental policies as non-fundamental policies. [ ] FOR ALL [ ] AGAINST ALL [ ] FOR ALL EXCEPT ------------------------------ [ ] ABSTAIN INSTRUCTION: To withhold authority to vote for any individual fundamental investment restriction, mark "FOR ALL EXCEPT" and write the letter(s) on the line above corresponding to the fundamental investment restriction(s) for which you want to withhold authority. (a) Short Sales Policy (b) Purchasing Other Investment Companies Policy (c) Puts/Calls Policy -------------------------------------------------------------------------------- To change the address on your account, please check the box at right and indicate your new address in the address space above. Please note that changes to the registered name(s) on the account may not be submitted via this method. [ ] -------------------------------------------------------------------------------- THIS PROXY CARD WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED SHAREHOLDER, AND, IN THE DISCRETION OF SUCH PROXIES, UPON ANY AND ALL OTHER BUSINESS AS MAY PROPERLY COME BEFORE THE MEETING OR ANY ADJOURNMENT THEREOF. IF NO DIRECTION IS MADE, THIS PROXY CARD WILL BE VOTED FOR THE ELECTION OF THE NOMINEES AS TRUSTEES FOR THE FUND. PLEASE MARK, SIGN, DATE AND RETURN THIS PROXY CARD PROMPTLY USING THE ENCLOSED ENVELOPE. Signature of Shareholder: Date: --------------------------- ------------- Signature of Shareholder: Date: --------------------------- ------------- NOTE: PLEASE SIGN EXACTLY AS YOUR NAME APPEARS. WHEN SHARES ARE HELD BY JOINT TENANTS, EACH JOINT TENANT MUST SIGN. When signing as attorney, executor, administrator, trustee, guardian or custodian, please sign full title as such. If a corporation, please sign full corporate name by authorized officer and indicate the signer's office. If a partnership, please sign in partnership name. PROXY CARD MORGAN STANLEY LIQUID ASSET FUND INC. C/O MORGAN STANLEY INVESTMENT ADVISORS INC. 1221 AVENUE OF THE AMERICAS NEW YORK, NEW YORK 10020 THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS The undersigned hereby constitutes and appoints RONALD E. ROBISON, STEFANIE V. CHANG YU and BARRY FINK, and each of them, as proxies for the undersigned, with full power of substitution and resubstitution, and hereby authorizes said proxies, and each of them, to represent and vote, as designated on the reverse side, all stock of the above Fund held of record by the undersigned on May 30, 2006 at the Special Meeting of Shareholders to be held on Tuesday, August 1, 2006 at 1221 Avenue of the Americas, New York, New York 10020, and at any adjournment thereof. The undersigned hereby revokes any and all proxies with respect to such stock heretofore given by the undersigned. THE MATTERS BEING CONSIDERED HAVE BEEN PROPOSED BY MANAGEMENT. THE MATTERS BEING PROPOSED ARE RELATED TO, BUT NOT CONDITIONED ON, THE APPROVAL OF EACH OTHER. (CONTINUED AND TO BE SIGNED AND DATED ON REVERSE SIDE) SEE REVERSE SIDE SPECIAL MEETING OF SHAREHOLDERS OF MORGAN STANLEY LIQUID ASSET FUND INC. AUGUST 1, 2006 PROXY VOTING INSTRUCTIONS MAIL - Date, sign and mail your Proxy Card in the envelope provided as soon as possible. -OR- TELEPHONE - Call toll-free 1-800-PROXIES (1-800-776-9437) from any touchtone telephone and follow the instructions. Have your Control number (or "Company number") and Proxy Card available when you call. Company Number Account Number Control Number INTERNET - Go to the website: https://vote.proxy-direct.com and follow the on-screen directions. Please detach and mail in the envelope provided IF you are not voting via telephone or internet. PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE. PLEASE MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN HERE [X] 1. ELECTION OF THE FOLLOWING NOMINEES AS DIRECTORS: NOMINEES: Frank L. Bowman, Kathleen A. Dennis, James F. Higgins, Joseph J. Kearns, Michael F. Klein, W. Allen Reed and Fergus Reid [ ] FOR ALL NOMINEES [ ] AGAINST ALL NOMINEES [ ] FOR ALL EXCEPT: (See instructions below) [ ] Frank L. Bowman [ ] Kathleen A. Dennis [ ] James F. Higgins [ ] Joseph J. Kearns [ ] Michael F. Klein [ ] W. Allen Reed [ ] Fergus Reid INSTRUCTION: To withhold authority to vote for any individual nominee(s), mark "FOR ALL EXCEPT" and fill in the circle next to each nominee you wish to withhold, as shown here: [ ] 2. To eliminate certain fundamental investment restrictions. [ ] FOR ALL [ ] AGAINST ALL [ ] FOR ALL EXCEPT ------------------------------ [ ] ABSTAIN INSTRUCTION: To withhold authority to vote for any individual fundamental investment restriction, mark "FOR ALL EXCEPT" and write the letter(s) on the line above corresponding to the fundamental investment restriction(s) for which you want to withhold authority. (a) Margin Policy (b) Oil & Gas Policy (c) Warrants Policy (d) Director/Officer Ownership Policy (e) Exercising Control Policy (f) Common Stock Policy (g) Unseasoned Companies Policy (h) Joint Securities Accounts Policy 3. To modify certain fundamental investment restrictions. [ ] FOR ALL [ ] AGAINST ALL [ ] FOR ALL EXCEPT ------------------------------ [ ] ABSTAIN INSTRUCTION: To withhold authority to vote for any individual fundamental investment restriction, mark "FOR ALL EXCEPT" and write the letter(s) on the line above corresponding to the fundamental investment restriction(s) for which you want to withhold authority. (a) Diversification Policy (b) Borrowing Policy (c) Loan Policy (d) Commodities Policy 4. To reclassify certain fundamental policies as non-fundamental policies. [ ] FOR ALL [ ] AGAINST ALL [ ] FOR ALL EXCEPT ------------------------------ [ ] ABSTAIN INSTRUCTION: To withhold authority to vote for any individual fundamental investment restriction, mark "FOR ALL EXCEPT" and write the letter(s) on the line above corresponding to the fundamental investment restriction(s) for which you want to withhold authority. (a) Short Sales Policy (b) Purchasing Other Investment Companies Policy (c) Illiquid/Restricted Securities Policy (d) Puts/Calls Policy -------------------------------------------------------------------------------- To change the address on your account, please check the box at right and indicate your new address in the address space above. Please note that changes to the registered name(s) on the account may not be submitted via this method. [ ] -------------------------------------------------------------------------------- THIS PROXY CARD WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED SHAREHOLDER, AND, IN THE DISCRETION OF SUCH PROXIES, UPON ANY AND ALL OTHER BUSINESS AS MAY PROPERLY COME BEFORE THE MEETING OR ANY ADJOURNMENT THEREOF. IF NO DIRECTION IS MADE, THIS PROXY CARD WILL BE VOTED FOR THE ELECTION OF THE NOMINEES AS DIRECTORS FOR THE FUND. PLEASE MARK, SIGN, DATE AND RETURN THIS PROXY CARD PROMPTLY USING THE ENCLOSED ENVELOPE. Signature of Shareholder: Date: --------------------------- ------------- Signature of Shareholder: Date: --------------------------- ------------- NOTE: PLEASE SIGN EXACTLY AS YOUR NAME APPEARS. WHEN SHARES ARE HELD BY JOINT TENANTS, EACH JOINT TENANT MUST SIGN. When signing as attorney, executor, administrator, trustee, guardian or custodian, please sign full title as such. If a corporation, please sign full corporate name by authorized officer and indicate the signer's office. If a partnership, please sign in partnership name. PROXY CARD MORGAN STANLEY NEW YORK MUNICIPAL MONEY MARKET TRUST C/O MORGAN STANLEY INVESTMENT ADVISORS INC. 1221 AVENUE OF THE AMERICAS NEW YORK, NEW YORK 10020 THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF TRUSTEES The undersigned hereby constitutes and appoints RONALD E. ROBISON, STEFANIE V. CHANG YU and BARRY FINK, and each of them, as proxies for the undersigned, with full power of substitution and resubstitution, and hereby authorizes said proxies, and each of them, to represent and vote, as designated on the reverse side, all stock of the above Fund held of record by the undersigned on May 30, 2006 at the Special Meeting of Shareholders to be held on Tuesday, August 1, 2006 at 1221 Avenue of the Americas, New York, New York 10020, and at any adjournment thereof. The undersigned hereby revokes any and all proxies with respect to such stock heretofore given by the undersigned. THE MATTERS BEING CONSIDERED HAVE BEEN PROPOSED BY MANAGEMENT. THE MATTERS BEING PROPOSED ARE RELATED TO, BUT NOT CONDITIONED ON, THE APPROVAL OF EACH OTHER. (CONTINUED AND TO BE SIGNED AND DATED ON REVERSE SIDE) SEE REVERSE SIDE SPECIAL MEETING OF SHAREHOLDERS OF MORGAN STANLEY NEW YORK MUNICIPAL MONEY MARKET TRUST AUGUST 1, 2006 PROXY VOTING INSTRUCTIONS MAIL - Date, sign and mail your Proxy Card in the envelope provided as soon as possible. -OR- TELEPHONE - Call toll-free 1-800-PROXIES (1-800-776-9437) from any touchtone telephone and follow the instructions. Have your Control number (or "Company number") and Proxy Card available when you call. Company Number Account Number Control Number INTERNET - Go to the website: https://vote.proxy-direct.com and follow the on-screen directions. Please detach and mail in the envelope provided IF you are not voting via telephone or internet. PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE. PLEASE MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN HERE [X] 1. ELECTION OF THE FOLLOWING NOMINEES AS TRUSTEES: NOMINEES: Frank L. Bowman, Kathleen A. Dennis, James F. Higgins, Joseph J. Kearns, Michael F. Klein, W. Allen Reed and Fergus Reid [ ] FOR ALL NOMINEES [ ] AGAINST ALL NOMINEES [ ] FOR ALL EXCEPT: (See instructions below) [ ] Frank L. Bowman [ ] Kathleen A. Dennis [ ] James F. Higgins [ ] Joseph J. Kearns [ ] Michael F. Klein [ ] W. Allen Reed [ ] Fergus Reid INSTRUCTION: To withhold authority to vote for any individual nominee(s), mark "FOR ALL EXCEPT" and fill in the circle next to each nominee you wish to withhold, as shown here: [ ] 2. To eliminate certain fundamental investment restrictions. [ ] FOR ALL [ ] AGAINST ALL [ ] FOR ALL EXCEPT ------------------------------ [ ] ABSTAIN INSTRUCTION: To withhold authority to vote for any individual fundamental investment restriction, mark "FOR ALL EXCEPT" and write the letter(s) on the line above corresponding to the fundamental investment restriction(s) for which you want to withhold authority. (a) Pledging Assets Policy (b) Margin Policy (c) Oil & Gas Policy (d) Director/Officer Ownership Policy (e) Exercising Control Policy (f) Common Stock Policy 3. To modify certain fundamental investment restrictions. [ ] FOR ALL [ ] AGAINST ALL [ ] FOR ALL EXCEPT ____________ [ ] ABSTAIN INSTRUCTION: To withhold authority to vote for any individual fundamental investment restriction, mark "FOR ALL EXCEPT" and write the letter(s) on the line above corresponding to the fundamental investment restriction(s) for which you want to withhold authority. (a) Borrowing Policy (b) Loan Policy (c) Commodities Policy (d) Senior Securities Policy 4. To reclassify certain fundamental policies as non-fundamental policies. [ ] FOR ALL [ ] AGAINST ALL [ ] FOR ALL EXCEPT ------------------------------ [ ] ABSTAIN INSTRUCTION: To withhold authority to vote for any individual fundamental investment restriction, mark "FOR ALL EXCEPT" and write the letter(s) on the line above corresponding to the fundamental investment restriction(s) for which you want to withhold authority. (a) Short Sales Policy (b) Purchasing Other Investment Companies Policy (c) Puts/Calls Policy -------------------------------------------------------------------------------- To change the address on your account, please check the box at right and indicate your new address in the address space above. Please note that changes to the registered name(s) on the account may not be submitted via this method. [ ] -------------------------------------------------------------------------------- THIS PROXY CARD WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED SHAREHOLDER, AND, IN THE DISCRETION OF SUCH PROXIES, UPON ANY AND ALL OTHER BUSINESS AS MAY PROPERLY COME BEFORE THE MEETING OR ANY ADJOURNMENT THEREOF. IF NO DIRECTION IS MADE, THIS PROXY CARD WILL BE VOTED FOR THE ELECTION OF THE NOMINEES AS TRUSTEES FOR THE FUND. PLEASE MARK, SIGN, DATE AND RETURN THIS PROXY CARD PROMPTLY USING THE ENCLOSED ENVELOPE. Signature of Shareholder: Date: --------------------------- ------------- Signature of Shareholder: Date: --------------------------- ------------- NOTE: PLEASE SIGN EXACTLY AS YOUR NAME APPEARS. WHEN SHARES ARE HELD BY JOINT TENANTS, EACH JOINT TENANT MUST SIGN. When signing as attorney, executor, administrator, trustee, guardian or custodian, please sign full title as such. If a corporation, please sign full corporate name by authorized officer and indicate the signer's office. If a partnership, please sign in partnership name. PROXY CARD MORGAN STANLEY TAX-FREE DAILY INCOME TRUST C/O MORGAN STANLEY INVESTMENT ADVISORS INC. 1221 AVENUE OF THE AMERICAS NEW YORK, NEW YORK 10020 THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF TRUSTEES The undersigned hereby constitutes and appoints RONALD E. ROBISON, STEFANIE V. CHANG YU and BARRY FINK, and each of them, as proxies for the undersigned, with full power of substitution and resubstitution, and hereby authorizes said proxies, and each of them, to represent and vote, as designated on the reverse side, all stock of the above Fund held of record by the undersigned on May 30, 2006 at the Special Meeting of Shareholders to be held on Tuesday, August 1, 2006 at 1221 Avenue of the Americas, New York, New York 10020, and at any adjournment thereof. The undersigned hereby revokes any and all proxies with respect to such stock heretofore given by the undersigned. THE MATTERS BEING CONSIDERED HAVE BEEN PROPOSED BY MANAGEMENT. THE MATTERS BEING PROPOSED ARE RELATED TO, BUT NOT CONDITIONED ON, THE APPROVAL OF EACH OTHER. (CONTINUED AND TO BE SIGNED AND DATED ON REVERSE SIDE) SEE REVERSE SIDE SPECIAL MEETING OF SHAREHOLDERS OF MORGAN STANLEY TAX-FREE DAILY INCOME TRUST AUGUST 1, 2006 PROXY VOTING INSTRUCTIONS MAIL - Date, sign and mail your Proxy Card in the envelope provided as soon as possible. -OR- TELEPHONE - Call toll-free 1-800-PROXIES (1-800-776-9437) from any touchtone telephone and follow the instructions. Have your Control number (or "Company number") and Proxy Card available when you call. Company Number Account Number Control Number INTERNET - Go to the website: https://vote.proxy-direct.com and follow the on-screen directions. Please detach and mail in the envelope provided IF you are not voting via telephone or internet. PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE. PLEASE MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN HERE [X] 1. ELECTION OF THE FOLLOWING NOMINEES AS TRUSTEES: NOMINEES: Frank L. Bowman, Kathleen A. Dennis, James F. Higgins, Joseph J. Kearns, Michael F. Klein, W. Allen Reed and Fergus Reid [ ] FOR ALL NOMINEES [ ] AGAINST ALL NOMINEES [ ] FOR ALL EXCEPT: (See instructions below) [ ] Frank L. Bowman [ ] Kathleen A. Dennis [ ] James F. Higgins [ ] Joseph J. Kearns [ ] Michael F. Klein [ ] W. Allen Reed [ ] Fergus Reid INSTRUCTION: To withhold authority to vote for any individual nominee(s), mark "FOR ALL EXCEPT" and fill in the circle next to each nominee you wish to withhold, as shown here: [ ] 2. To eliminate certain fundamental investment restrictions. [ ] FOR ALL [ ] AGAINST ALL [ ] FOR ALL EXCEPT ------------------------------ [ ] ABSTAIN INSTRUCTION: To withhold authority to vote for any individual fundamental investment restriction, mark "FOR ALL EXCEPT" and write the letter(s) on the line above corresponding to the fundamental investment restriction(s) for which you want to withhold authority. (a) Pledging Assets Policy (b) Margin Policy (c) Oil & Gas Policy (d) Director/Officer Ownership Policy (e) Exercising Control Policy (f) Common Stock Policy (g) Unseasoned Companies Policy 3. To modify certain fundamental investment restrictions. [ ] FOR ALL [ ] AGAINST ALL [ ] FOR ALL EXCEPT ____________ [ ] ABSTAIN INSTRUCTION: To withhold authority to vote for any individual fundamental investment restriction, mark "FOR ALL EXCEPT" and write the letter(s) on the line above corresponding to the fundamental investment restriction(s) for which you want to withhold authority. (a) Diversification Policy (b) Borrowing Policy (c) Loan Policy (d) Commodities Policy (e) Senior Securities Policy 4. To reclassify certain fundamental policies as non-fundamental policies. [ ] FOR ALL [ ] AGAINST ALL [ ] FOR ALL EXCEPT ------------------------------ [ ] ABSTAIN INSTRUCTION: To withhold authority to vote for any individual fundamental investment restriction, mark "FOR ALL EXCEPT" and write the letter(s) on the line above corresponding to the fundamental investment restriction(s) for which you want to withhold authority. (a) Short Sales Policy (b) Purchasing Other Investment Companies Policy (c) Puts/Calls Policy -------------------------------------------------------------------------------- To change the address on your account, please check the box at right and indicate your new address in the address space above. Please note that changes to the registered name(s) on the account may not be submitted via this method. [ ] -------------------------------------------------------------------------------- THIS PROXY CARD WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED SHAREHOLDER, AND, IN THE DISCRETION OF SUCH PROXIES, UPON ANY AND ALL OTHER BUSINESS AS MAY PROPERLY COME BEFORE THE MEETING OR ANY ADJOURNMENT THEREOF. IF NO DIRECTION IS MADE, THIS PROXY CARD WILL BE VOTED FOR THE ELECTION OF THE NOMINEES AS TRUSTEES FOR THE FUND. PLEASE MARK, SIGN, DATE AND RETURN THIS PROXY CARD PROMPTLY USING THE ENCLOSED ENVELOPE. Signature of Shareholder: Date: --------------------------- ------------- Signature of Shareholder: Date: --------------------------- ------------- NOTE: PLEASE SIGN EXACTLY AS YOUR NAME APPEARS. WHEN SHARES ARE HELD BY JOINT TENANTS, EACH JOINT TENANT MUST SIGN. When signing as attorney, executor, administrator, trustee, guardian or custodian, please sign full title as such. If a corporation, please sign full corporate name by authorized officer and indicate the signer's office. If a partnership, please sign in partnership name. PROXY CARD MORGAN STANLEY U.S. GOVERNMENT MONEY MARKET TRUST C/O MORGAN STANLEY INVESTMENT ADVISORS INC. 1221 AVENUE OF THE AMERICAS NEW YORK, NEW YORK 10020 THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF TRUSTEES The undersigned hereby constitutes and appoints RONALD E. ROBISON, STEFANIE V. CHANG YU and BARRY FINK, and each of them, as proxies for the undersigned, with full power of substitution and resubstitution, and hereby authorizes said proxies, and each of them, to represent and vote, as designated on the reverse side, all stock of the above Fund held of record by the undersigned on May 30, 2006 at the Special Meeting of Shareholders to be held on Tuesday, August 1, 2006 at 1221 Avenue of the Americas, New York, New York 10020, and at any adjournment thereof. The undersigned hereby revokes any and all proxies with respect to such stock heretofore given by the undersigned. THE MATTERS BEING CONSIDERED HAVE BEEN PROPOSED BY MANAGEMENT. THE MATTERS BEING PROPOSED ARE RELATED TO, BUT NOT CONDITIONED ON, THE APPROVAL OF EACH OTHER. (CONTINUED AND TO BE SIGNED AND DATED ON REVERSE SIDE) SEE REVERSE SIDE SPECIAL MEETING OF SHAREHOLDERS OF MORGAN STANLEY U.S. GOVERNMENT MONEY MARKET TRUST AUGUST 1, 2006 PROXY VOTING INSTRUCTIONS MAIL - Date, sign and mail your Proxy Card in the envelope provided as soon as possible. -OR- TELEPHONE - Call toll-free 1-800-PROXIES (1-800-776-9437) from any touchtone telephone and follow the instructions. Have your Control number (or "Company number") and Proxy Card available when you call. Company Number Account Number Control Number INTERNET - Go to the website: https://vote.proxy-direct.com and follow the on-screen directions. Please detach and mail in the envelope provided IF you are not voting via telephone or internet. PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE. PLEASE MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN HERE [X] 1. ELECTION OF THE FOLLOWING NOMINEES AS TRUSTEES: NOMINEES: Frank L. Bowman, Kathleen A. Dennis, James F. Higgins, Joseph J. Kearns, Michael F. Klein, W. Allen Reed and Fergus Reid [ ] FOR ALL NOMINEES [ ] AGAINST ALL NOMINEES [ ] FOR ALL EXCEPT: (See instructions below) [ ] Frank L. Bowman [ ] Kathleen A. Dennis [ ] James F. Higgins [ ] Joseph J. Kearns [ ] Michael F. Klein [ ] W. Allen Reed [ ] Fergus Reid INSTRUCTION: To withhold authority to vote for any individual nominee(s), mark "FOR ALL EXCEPT" and fill in the circle next to each nominee you wish to withhold, as shown here: [ ] 2. To eliminate certain fundamental investment restrictions. [ ] FOR ALL [ ] AGAINST ALL [ ] FOR ALL EXCEPT ------------------------------ [ ] ABSTAIN INSTRUCTION: To withhold authority to vote for any individual fundamental investment restriction, mark "FOR ALL EXCEPT" and write the letter(s) on the line above corresponding to the fundamental investment restriction(s) for which you want to withhold authority. (a) Pledging Assets Policy (b) Margin Policy (c) Oil & Gas Policy (d) Warrants Policy (e) Common Stock Policy 3. To modify certain fundamental investment restrictions. [ ] FOR ALL [ ] AGAINST ALL [ ] FOR ALL EXCEPT ------------------------------ INSTRUCTION: To withhold authority to vote for any individual fundamental investment restriction, mark "FOR ALL EXCEPT" and write the letter(s) on the line above corresponding to the fundamental investment restriction(s) for which you want to withhold authority. (a) Borrowing Policy (b) Loan Policy (c) Commodities Policy (d) Senior Securities Policy 4. To reclassify certain fundamental policies as non-fundamental policies. [ ] FOR ALL [ ] AGAINST ALL [ ] FOR ALL EXCEPT ------------------------------ [ ] ABSTAIN INSTRUCTION: To withhold authority to vote for any individual fundamental investment restriction, mark "FOR ALL EXCEPT" and write the letter(s) on the line above corresponding to the fundamental investment restriction(s) for which you want to withhold authority. (a) Short Sales Policy (b) Purchasing Other Investment Companies Policy (c) Puts/Calls Policy -------------------------------------------------------------------------------- To change the address on your account, please check the box at right and indicate your new address in the address space above. Please note that changes to the registered name(s) on the account may not be submitted via this method. [ ] -------------------------------------------------------------------------------- THIS PROXY CARD WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED SHAREHOLDER, AND, IN THE DISCRETION OF SUCH PROXIES, UPON ANY AND ALL OTHER BUSINESS AS MAY PROPERLY COME BEFORE THE MEETING OR ANY ADJOURNMENT THEREOF. IF NO DIRECTION IS MADE, THIS PROXY CARD WILL BE VOTED FOR THE ELECTION OF THE NOMINEES AS TRUSTEES FOR THE FUND. PLEASE MARK, SIGN, DATE AND RETURN THIS PROXY CARD PROMPTLY USING THE ENCLOSED ENVELOPE. Signature of Shareholder: Date: --------------------------- ------------- Signature of Shareholder: Date: --------------------------- ------------- NOTE: PLEASE SIGN EXACTLY AS YOUR NAME APPEARS. WHEN SHARES ARE HELD BY JOINT TENANTS, EACH JOINT TENANT MUST SIGN. When signing as attorney, executor, administrator, trustee, guardian or custodian, please sign full title as such. If a corporation, please sign full corporate name by authorized officer and indicate the signer's office. If a partnership, please sign in partnership name. PROXY THE MORGAN STANLEY MONEY MARKET FUNDS PROXY JOINT SPECIAL MEETINGS OF SHAREHOLDERS TO BE HELD AUGUST 1, 2006 THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF TRUSTEES. The undersigned hereby appoints RONALD E. ROBISON, STEFANIE V. CHANG YU and BARRY FINK, and each of them, as proxies for the undersigned, with full power of substitution and resubstitution, and hereby authorizes said proxies, and each of them to represent and vote, as designated on this proxy card, alloutstanding shares of the above Fund(s) heldFund, all in accordance with the purposes intended to be accomplished by this Plan. The Board may abandon this Plan at any time if it determines that abandonment would be in the best interests of record by the undersigned on May 30, 2006Fund. 10.Satisfaction of Federal Income and Excise Tax Distribution Requirements.  At or immediately prior to the liquidation date, the Fund shall, if necessary, have declared and paid a dividend or dividends which, together with all previous such dividends, shall have the effect of distributing to the shareholders of the Fund all of the Fund’s investment company taxable income for taxable years ending at or prior to the liquidation date (computed without regard to any deduction for dividends paid) and all of its net capital gain, if any, realized in taxable years ending at or prior to the liquidation date (after reduction for any capital loss carry-forward) and undistributed net income from tax-exempt obligations and any additional amounts necessary to avoid any income tax and excise tax for such periods. Such dividends may be paid either prior to or at the Special Meetings of Shareholderssame time as the liquidating distributions. 11. Governing Law.  This Plan shall be governed and construed in accordance with the laws of the Morgan Stanley Domestic Equity Funds to be held at 1221 AvenueCommonwealth of the Americas, New York, New York 10020 on August 1, 2006 and at any adjournment thereof. The undersigned hereby revokes any and all proxies with respect to such shares heretofore given by the undersigned. The matters being considered have been proposed by management. THE MATTERS BEING PROPOSED ARE RELATED TO, BUT NOT CONDITIONED ON, THE APPROVAL OF EACH OTHER. THIS PROXY CARD WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED SHAREHOLDER, AND, IN THE DISCRETION OF SUCH PROXIES, UPON ANY AND ALL OTHER BUSINESS AS MAY PROPERLY COME BEFORE THE MEETING OR ANY ADJOURNMENT THEREOF. IF NO DIRECTION IS MADE, THIS PROXY CARD WILL BE VOTED FOR THE ELECTION OF THE NOMINEES AS TRUSTEES FOR THE FUND AND FOR THE OTHER PROPOSALS LISTED ON THIS PROXY CARD. VOTE VIA THE INTERNET: https://vote.proxy-direct.com VOTE VIA THE TELEPHONE: 1-866-877-0438 [ ] [ ] NOTE: Please sign exactly as name(s) appear(s) on the records of a Fund. Joint owners should each sign personally. Trustees and other representatives should indicate the capacity in which they sign, and where more than one name appears, a majority must sign. If a corporation or another entity, the signature should be that of an authorized officer who should state his or her full title. _____________________________________________________ Stockholder sign here _____________________________________________________ Co-owner sign here _____________________________________________________ Date MSD_16423 MORGAN STANLEY FUNDS MORGAN STANLEY FUNDS MORGAN STANLEY FUNDS -------------------- -------------------- -------------------- Fundname Drop In 1 Fundname Drop In Massachusetts. Morgan Stanley New York Municipal Money Market Trust, By: Name: Title: Exhibit A-2 Fundname Drop In 3 Fundname Drop In 4 Fundname Drop In 5 Fundname Drop In 6 THE BOARD OF TRUSTEES RECOMMENDS YOU VOTE IN FAVOR OF THE PROPOSALS. PLEASE MARK BOXES BELOW IN BLUE OR BLACK INK AS FOLLOWS. Example: [------------------------------------------------------------------------------] [ [ ] To vote FOR ALL Proposals for all Funds mark this box. No other vote ] [ is necessary. ] [------------------------------------------------------------------------------] 1. ELECTION OF THE FOLLOWING NOMINEES AS TRUSTEES: 01. Frank L. Bowman 02. Kathleen A. Dennis 03. James F. Higgins 04. Joseph J. Kearns 05. Michael F. Klein 06. W. Allen Reed 07. Fergus Reid FOR WITHHOLD FOR ALL ALL ALL EXCEPT Fundname Drop-In 1 [ ] [ ] [ ] _________________ Fundname Drop-In 2 [ ] [ ] [ ] _________________ Fundname Drop-In 3 [ ] [ ] [ ] _________________ Fundname Drop-In 4 [ ] [ ] [ ] _________________ Fundname Drop-In 5 [ ] [ ] [ ] _________________ Fundname Drop-In 6 [ ] [ ] [ ] _________________ 2. TO APPROVE THE ELIMINATION OF CERTAIN FUNDAMENTAL INVESTMENT RESTRICTIONS REGARDING: 2.A. PLEDGING ASSETS POLICY. FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN Fundname Drop In 1 [ ] [ ] [ ] Fundname Drop In 2 [ ] [ ] [ ] Fundname Drop In 3 [ ] [ ] [ ] Fundname Drop In 4 [ ] [ ] [ ] Fundname Drop In 5 [ ] [ ] [ ] Fundname Drop In 6 [ ] [ ] [ ] 2.B. MARGIN POLICY. FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN Fundname Drop In 1 [ ] [ ] [ ] Fundname Drop In 2 [ ] [ ] [ ] Fundname Drop In 3 [ ] [ ] [ ] Fundname Drop In 4 [ ] [ ] [ ] Fundname Drop In 5 [ ] [ ] [ ] Fundname Drop In 6 [ ] [ ] [ ] 2.C. OIL & GAS POLICY. FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN Fundname Drop In 1 [ ] [ ] [ ] Fundname Drop In 2 [ ] [ ] [ ] Fundname Drop In 3 [ ] [ ] [ ] Fundname Drop In 4 [ ] [ ] [ ] Fundname Drop In 5 [ ] [ ] [ ] Fundname Drop In 6 [ ] [ ] [ ] 2.D. WARRANTS POLICY. FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN Fundname Drop In 1 [ ] [ ] [ ] Fundname Drop In 2 [ ] [ ] [ ] Fundname Drop In 3 [ ] [ ] [ ] Fundname Drop In 4 [ ] [ ] [ ] 2.E. TRUSTEE/OFFICER OWNERSHIP POLICY. FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN Fundname Drop In 1 [ ] [ ] [ ] Fundname Drop In 2 [ ] [ ] [ ] Fundname Drop In 3 [ ] [ ] [ ] Fundname Drop In 4 [ ] [ ] [ ] Fundname Drop In 5 [ ] [ ] [ ] Fundname Drop In 6 [ ] [ ] [ ] 2.F. EXERCISING CONTROL POLICY. FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN Fundname Drop In 1 [ ] [ ] [ ] Fundname Drop In 2 [ ] [ ] [ ] Fundname Drop In 3 [ ] [ ] [ ] Fundname Drop In 4 [ ] [ ] [ ] Fundname Drop In 5 [ ] [ ] [ ] Fundname Drop In 6 [ ] [ ] [ ] 2.G. COMMON STOCK POLICY FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN Fundname Drop In 1 [ ] [ ] [ ] Fundname Drop In 2 [ ] [ ] [ ] Fundname Drop In 3 [ ] [ ] [ ] Fundname Drop In 4 [ ] [ ] [ ] Fundname Drop In 5 [ ] [ ] [ ] Fundname Drop In 6 [ ] [ ] [ ] 2.H. UNSEASONED COMPANIES POLICY FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN Fundname Drop In 1 [ ] [ ] [ ] Fundname Drop In 2 [ ] [ ] [ ] Fundname Drop In 3 [ ] [ ] [ ] Fundname Drop In 4 [ ] [ ] [ ] 2.I. JOINT SECURITIES ACCOUNTS POLICY FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN Fundname Drop In 1 [ ] [ ] [ ] Fundname Drop In 2 [ ] [ ] [ ] 3. TO APPROVE THE MODIFICATION OF CERTAIN FUNDAMENTAL INVESTMENT RESTRICTIONS REGARDING: 3.A. DIVERSIFICATION POLICY. FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN Fundname Drop In 1 [ ] [ ] [ ] Fundname Drop In 2 [ ] [ ] [ ] Fundname Drop In 3 [ ] [ ] [ ] Fundname Drop In 4 [ ] [ ] [ ] Fundname Drop In 5 [ ] [ ] [ ] Fundname Drop In 6 [ ] [ ] [ ] 3.B. BORROWING POLICY. FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN Fundname Drop In 1 [ ] [ ] [ ] Fundname Drop In 2 [ ] [ ] [ ] Fundname Drop In 3 [ ] [ ] [ ] Fundname Drop In 4 [ ] [ ] [ ] Fundname Drop In 5 [ ] [ ] [ ] Fundname Drop In 6 [ ] [ ] [ ] 3.C. LOAN POLICY. FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN Fundname Drop In 1 [ ] [ ] [ ] Fundname Drop In 2 [ ] [ ] [ ] Fundname Drop In 3 [ ] [ ] [ ] Fundname Drop In 4 [ ] [ ] [ ] Fundname Drop In 5 [ ] [ ] [ ] Fundname Drop In 6 [ ] [ ] [ ] 3.D. COMMODITIES POLICY. FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN Fundname Drop In 1 [ ] [ ] [ ] Fundname Drop In 2 [ ] [ ] [ ] Fundname Drop In 3 [ ] [ ] [ ] Fundname Drop In 4 [ ] [ ] [ ] Fundname Drop In 5 [ ] [ ] [ ] Fundname Drop In 6 [ ] [ ] [ ] 3.E. SENIOR SECURITIES POLICY. FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN Fundname Drop In 1 [ ] [ ] [ ] Fundname Drop In 2 [ ] [ ] [ ] Fundname Drop In 3 [ ] [ ] [ ] Fundname Drop In 4 [ ] [ ] [ ] Fundname Drop In 5 [ ] [ ] [ ] Fundname Drop In 6 [ ] [ ] [ ] 4. TO APPROVE THE RECLASSIFICATION OF CERTAIN FUNDAMENTAL POLICIES AS NON-FUNDAMENTAL POLICIES REGARDING: 4.A. SHORT SALES POLICY. FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN Fundname Drop In 1 [ ] [ ] [ ] Fundname Drop In 2 [ ] [ ] [ ] Fundname Drop In 3 [ ] [ ] [ ] Fundname Drop In 4 [ ] [ ] [ ] Fundname Drop In 5 [ ] [ ] [ ] Fundname Drop In 6 [ ] [ ] [ ] 4.B. PURCHASING OTHER INVESTMENT COMPANIES POLICY. FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN Fundname Drop In 1 [ ] [ ] [ ] Fundname Drop In 2 [ ] [ ] [ ] Fundname Drop In 3 [ ] [ ] [ ] Fundname Drop In 4 [ ] [ ] [ ] Fundname Drop In 5 [ ] [ ] [ ] Fundname Drop In 6 [ ] [ ] [ ] 4.C. ILLIQUID/RESTRICTED SECURITIES POLICY. FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN Fundname Drop In 1 [ ] [ ] [ ] Fundname Drop In 2 [ ] [ ] [ ] Fundname Drop In 3 [ ] [ ] [ ] 4.D. PUTS/CALLS POLICY. FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN Fundname Drop In 1 [ ] [ ] [ ] Fundname Drop In 2 [ ] [ ] [ ] Fundname Drop In 3 [ ] [ ] [ ] Fundname Drop In 4 [ ] [ ] [ ] Fundname Drop In 5 [ ] [ ] [ ] Fundname Drop In 6 [ ] [ ] [ ]