Proposal 3.A. — Modify Fundamental Policy Regarding Diversification
‘‘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.’’
Section 8(b) of the Investment Company Act requires an investment company to state whether it is ‘‘diversified’’ as that term is defined 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 of 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, the proposed change would modify a Fund’s fundamental investment policies regarding its sub-classification under the Investment Company Act to rely on the definitions 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 Fund as those requirements may be amended from time to time.
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% of the Fund’s assets rather than to 75% 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 policy will not affect each Fund's intention to continue to comply with the diversification and other requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the ‘‘Code’’), in order to continue to qualify for the special tax treatment afforded to ‘‘regulated investment companies.’’
Proposal 3.B. — Modify Fundamental Policy
Regarding Borrowing Money
Applicable Funds: All Funds
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 Fund 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 purposes (such as meeting redemption requests that might otherwise require the untimely disposition of securities). Certain Funds had 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 that 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 therefrom 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:
21
‘‘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 by purchasing debt obligations, investments in repurchase agreements or by lending their portfolio securities (except Limited Duration U.S. Treasury Fund and U.S. Government Securities Fund, which can only make loans by purchasing debt obligations, and Tax-Exempt Securities Fund, which can make loans by entering into repurchase agreement and by purchasing debt obligations; each of these Funds is currently prohibited from engaging in securities lending). 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. In particular, Limited Duration U.S. Treasury Fund, U.S. Government Securities Fund and Tax-Exempt Securities Fund which are currently prohibited from engaging in securities lending would be able to engage in securities lending if the proposal is approved.
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.’’
22
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: 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 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
23
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.
Proposal 3.F. — Modify Fundamental Policy Limiting Investments to Securities
Backed by the ‘‘Full Faith and Credit’’ of the U.S. Government
Applicable Fund: U.S. Government Securities Fund
Proposed New Fundamental Investment Policy: If the proposed modification is approved by Shareholders, the Fund’s fundamental policy would read:
‘‘The Fund may not invest 25% or more of the value of its total assets in securities of issuers of any one industry. This restriction does not apply to bank obligations or obligations issued or guaranteed by the U.S. Government, its agencies or instrumentalities.’’
Discussion of Proposed Modification:
The Fund has a fundamental policy requiring it to purchase securities issued or guaranteed by the U.S. Government, but which are limited only to those securities backed by the ‘‘full faith and credit’’ of the U.S. Government. Fund management desires the flexibility to purchase other U.S. Government securities, namely those issued or guaranteed by agencies or instrumentalities of the U.S. Government but not necessarily backed by the ‘‘full faith and credit’’ of the U.S. government. If the Proposal is approved, the Fund may invest in securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities, which include obligations (a) supported by the full faith and credit of the U.S. Treasury, (b) supported by the ability to borrow from the U.S. Treasury, (c) supported only by the credit of the issuing agency or instrumentality, or (d) supported by the U.S. Government in some other way, such as the discretionary authority of the U.S. Government to purchase certain obligations of the agency or instrumentality. Because some of these securities are not backed by the full faith and credit of the United States, there is a risk that the U.S. government will not provide financial support to these agencies if it is not obligated to do so by law. The maximum potential liability of the issuers of some U.S. government
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
* | The High Yield Fund does not have a fundamental policy regarding issuance of senior securities and thus would be adopting a new policy as described above. |
24
securities held by the Fund may greatly exceed their current resources, including their legal right to support from the U.S. Treasury. It is possible that these issuers will not have the funds to meet their payment obligations in the future. If the Proposal is approved, the new fundamental concentration policy cannot be changed without a vote of the Fund’s shareholders and the Fund would still be required as a matter of non-fundamental policy to invest at least 80% of its assets in U.S. Government securities. If the U.S. Government securities are not backed by the ‘‘full faith and credit’’ of the United States, the investor must look principally to the agency or instrumentality issuing or guaranteeing the obligation for ultimate repayment and may not be able to assert a claim against the United States itself in the event the agency or instrumentality does not meet its commitment.
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
4. | PROPOSALS TO RECLASSIFY CERTAIN FUNDAMENTAL POLICIES AS NON-FUNDAMENTAL POLICIES. |
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif)
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Name of Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 4A Reclassify as Non-Fundamental Short Sales Policy | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 4B Reclassify as Non-Fundamental Purchasing Other Investment Companies Policy | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 4C Reclassify as Non-Fundamental Illiquid/Restricted Securities Policy | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 4D Reclassify as Non-Fundamental Puts/Calls Policy |
California Tax-Free Income Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | X | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | X | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | X |
Flexible Income Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | X | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | X | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | |
High Yield Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | X | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | X | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | X |
Income Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | X | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | X | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | X | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | |
Limited Term Municipal Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | X | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | X | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | X |
Limited Duration Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | X | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | X | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | |
Limited Duration U.S. Treasury Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | X | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | X | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | X |
Mortgage Securities Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | X | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | X | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | X | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | |
New York Tax-Free Income Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | X | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | X | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | X |
Tax-Exempt Securities Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | X | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | X | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | X |
U.S. Government Securities Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | X | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | X | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | |
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Proposal 4.A. — Reclassification As Non-Fundamental the
Fundamental Policy Regarding the Short Sale Of Securities
Applicable Funds: All Funds
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
25
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:
26
‘‘The Fund may not invest more than 15% 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 On
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 proposed that the fundamental investment policy prohibiting or limiting the purchase or sale of puts, calls and combinations thereof be reclassified as non-fundamental and revised to read as follows:
‘‘The Fund may not write, purchase or sell puts, calls, or combinations thereof.1 ’’
Reasons for the Reclassification of the Investment Policy:
Each of the Funds has a fundamental policy limiting investments involving puts, calls, straddles and spreads. 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 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 permit the Fund greater flexibility to
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
1 | The High Yield Fund and Limited Term Municipal Fund would maintain a non-fundamental policy of not writing, purchasing or selling puts, calls, or combinations thereof, except options on futures contracts or options on debt securities. |
27
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 so pursuant to the new policy only under the careful review of each Fund’s Board, which review may include, among other things, placing limitations on the value of the Fund’s assets and limitations on the level 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 buy or sell the underlying security at the exercise price. As a result, writing a put option involves the risk of a decrease in the market value of the underlying security, in which case the option could be exercised and the underlying security would then be sold by the option holder to the Fund at a higher price than its current market value. Writing a call option involves the risk of an increase in the market value of the underlying security, in which case 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 approval of the holders of a ‘‘majority of the outstanding voting securities’’ of each Fund which under 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 policies as described above.
SECURITY OWNERSHIP OF TRUSTEES, OFFICERS AND CERTAIN 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 persons 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.
28
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:
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif)
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 2006* | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 2005 | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Limited Term Municipal Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | $ | 30,446 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | $ | 29,002 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Limited Duration Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 35,125 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 33,458 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif)
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 2005* | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 2004 | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
California Tax-Free Income Fund. | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | $ | 30,447 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | $ | 29,002 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Flexible Income Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 53,257 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 50,712 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
High Yield Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 46,106 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 44,630 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Income Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 32,666 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 31,830 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Limited Duration U.S. Treasury Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 30,048 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 31,110 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Mortgage Securities Fund. | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 47,993 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 45,699 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
New York Tax-Free Income Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 30,447 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 29,002 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Tax-Exempt Securities Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 47,993 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 45,712 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
U.S. Government Securities Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 44,484 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 42,370 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| | * 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, Limited Term Municipal Fund and Limited Duration Fund which paid audit-related fees in the amount of $540 and $452, respectively, for 2006 & 2005; California Tax-Free Income Fund, Flexible Income Fund, High Yield Fund, Income Trust, Mortgage Securities Trust, New York Tax Free Income Fund, Tax Exempt Securities, U.S. Government Securities which paid audit-related fees in the amount of $540 and $452, respectively, for 2005 & 2004; Limited Duration U.S. Treasury Fund which paid audit-related fees in the amount of $5,840 and $452, respectively, for 2005 & 2004.
29
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.
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif)
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 2006* | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 2005 | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Limited Term Municipal Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | $ | 4,865 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | $ | 4,803 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Limited Duration Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 5,475 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 7,495 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 2005* | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 2004 | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
California Tax-Free Income Fund. | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | $ | 4,699 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | $ | 5,335 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Flexible Income Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 5,633 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 4,781 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
High Yield Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 5,368 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 5,313 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Income Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 6,161 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 5,598 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Limited Duration U.S. Treasury Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 4,585 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 4,134 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Mortgage Securities Fund. | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 5,326 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 4,455 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
New York Tax-Free Income Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 5,199 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 6,085 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Tax-Exempt Securities Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 4,636 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 5,627 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
U.S. Government Securities Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 4,563 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 4,694 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| * | 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 fiscal year included:
30
(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 Meetings. The representatives from Deloitte & Touche 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 wishes to submit proposals for consideration at a meeting of shareholders of a Fund should send such proposal to that Fund c/o Morgan Stanley Investment Advisors Inc., 1221 Avenue of the Americas, New York, New York 10020. To be considered for presentation at a shareholder 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.
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | MARY E. MULLIN Secretary |
Dated: June 14, 2006
Shareholders of a Fund who do not expect to be present at the Meeting for that Fund and who wish to have their shares voted are requested to date and sign the enclosed Proxy Card for the Fund and return it in the enclosed envelope. No postage is required if mailed in the United States.
31
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.
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif)
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Defined Terms Used in this Joint Proxy Statement | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Shares Outstanding as of May 30, 2006 | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Name and Address of Beneficial Owner | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Amount of Beneficial Ownership | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Percent of Class | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Morgan Stanley California Tax-Free Income Fund (Inception Date 07/11/84) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | California Tax-Free Income Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 44,485,751.661 shares | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Morgan Stanley Flexible Income Trust (Inception Date 04/09/92) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Flexible Income Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 42,949,522.650 shares | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Morgan Stanley High Yield Securities Inc. (Inception Date 09/26/79) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | High Yield Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 180,215,603.835 shares | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Morgan Stanley Income Trust (Inception Date 05/03/89) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Income Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 6,427,317.939 shares | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Class A | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Class B | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Class C | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Class D | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | RPM000 PIEDMONT BOBCAT 401K PRF SHR PLN DTD 1-1-98 WELDON CLODFELTER SR WELDON CLODFELTER JR 1015 US HWY 66 S KERNERSVILLE, NC 27285 | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 14,713.907 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 13.06 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | MARY J OWNBY TTEE OWNBY LIVING TRUST DECEDENT’S TRUST U/A DTD 11/30/1995 78950 CHAMPAGNE LANE PALM DESERT, CA 92211-1573 | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 5,768.958 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 5.12 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Morgan Stanley Limited Duration Fund (Inception Date 01/10/94) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Limited Duration Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 17,346,439.791 shares | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Morgan Stanley Limited Term Municipal Trust (Inception Date 07/12/93) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Limited Term Municipal Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 17,524,572.708 shares | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Morgan Stanley Limited Duration U.S. Treasury Trust (Inception Date 08/13/91) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Limited Duration U.S. Treasury Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 59,895,215.129 shares | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
A-1
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif)
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Defined Terms Used in this Joint Proxy Statement | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Shares Outstanding as of May 30, 2006 | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Name and Address of Beneficial Owner | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Amount of Beneficial Ownership | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Percent of Class | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Morgan Stanley Mortgage Securities Trust (Inception Date 03/31/87) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Mortgage Securities Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 24,968,704.600 shares | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Morgan Stanley New York Tax- Free Income Fund (Inception Date 04/25/85) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | New York Tax- Free Income Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 8,770,317.638 shares | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Class A | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Class B | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | JANNEY MONTGOMERY SCOTT LLC ESS & VEE ACOUSTICAL INC. 1801 MARKET STREET PHILADLEPHIA, PA 19103-1675 | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 163,915.495 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 7.30 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Class C | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | HELEN S WEPMAN REVOCABLE LIVING TR HELEN S WEPMAN & BARRY WEPMAN TTEES DTD 8/5/92 201 WEST 79TH STREET 33F NEW YORK, NY 10023-4331 | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 33,282.062 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 12.65 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | UBS FINANCIAL SERVICES INC. FBO MARIE GRACE LOGUERCIO 20 WATERSIDE PLAZA NEW YORK, NY 10010-2615 | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 24,549,264 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 9.33 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | MRS. AZADOUHI NORIAN 37 WILTON STREET NEW HYDE PARK, NY 11040-3829 | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 19,122.716 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 7.27 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | MICHAEL R SCARPATI 3030 EMMONS AVE APT 6A BROOKLYN, NY 11235-2224 | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 17,677.169 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 6.72 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | JAMES A STERN 255 HUGUENOT STREET NEW ROCHELLE, NY 10801-6392 | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 14,303.873 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 5.43 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
A-2
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif)
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Defined Terms Used in this Joint Proxy Statement | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Shares Outstanding as of May 30, 2006 | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Name and Address of Beneficial Owner | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Amount of Beneficial Ownership | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Percent of Class | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Class D | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | STANLEY ZINN 402 E 90TH STREET NEW YORK, NY 10128-5137 | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 41,273.518 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 5.08 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Morgan Stanley Tax-Exempt Securities Trust (Inception Date 03/27/80) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Tax-Exempt Securities Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 97,386,081.755 shares | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Morgan Stanley U.S. Government Securities Trust (Inception Date 06/29/84) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | U.S. Government Securities Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 284,261,234.875 shares | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Class A | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | STATE STREET BANK AND TRUST CO FBO ADP/MORGAN STANLEY ALLIANCE 105 ROSEMONT AVENUE WESTWOOD, MA 02090-2318 | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 14,942,452.501 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 8.09 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Class B | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Class C | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Class D | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | STATE STREET BANK AND TRUST CO FBO ADP/MORGAN STANLEY ALLIANCE 105 ROSEMONT AVENUE WESTWOOD, MA 02090-2318 | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 1,196,299.574 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 6.15 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
A-3
EXHIBIT B
DOLLAR RANGE OF EQUITY SECURITIES IN THE FUNDS
The following table sets forth information regarding the dollar range 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 services (the ‘‘Family of Investment Companies’’) owned by the Trustees of the Funds 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 in the following table are based upon the market price of the relevant Fund’s shares as of March 31, 2006.
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif)
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Name of Trustees | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | California Tax-Free Income Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Flexible Income Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | High Yield Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Income Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Limited Term Municipal Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Limited Duration Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Limited Duration U.S. Treasury Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Mortgage Securities Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | New York Tax-Free Income Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Tax-Exempt Securities Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | U.S. Government Securities Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 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 | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | |
Fiumefreddo | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | $50,001- $100,000 | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Over $100,000 | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | $ | 1-$10,000 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | $$ | 50,001-100,000 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | $$ | 10,001-50,000 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Over $100,000 |
Higgins | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Over $100,000 |
Independent Trustee/Nominee | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | |
Bowman | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | |
Bozic | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Over $100,000 |
Dennis | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | |
Garn | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Over $100,000 |
Hedien | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Over $100,000 |
Johnson | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Over $100,000 |
Kearns(1) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Over $100,000 |
Klein | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | |
Nugent | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Over $100,000 |
Reed | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | |
Reid(1) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | None | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Over $100,000 |
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
(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 options 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. |
B-1
EXHIBIT C
BOARD AND COMMITTEE MEETINGS
Set forth in the table below is information regarding Board and Committee meetings held during each Fund’s most recently completed fiscal year end.
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif)
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Fiscal Year End | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Number of Board Meetings Held | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Number of Independent Trustee Meetings Held | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Number of Audit Committee Meetings Held | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Number of Governance Committee Meetings Held | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | Number of Insurance Committee Meetings Held | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
California Tax-Free Income Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 12/31 | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 15 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 3 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 8 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 2 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 6 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Flexible Income Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 10/31 | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 12 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 3 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 8 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 2 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 6 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
High Yield Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 08/31 | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 14 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 3 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 9 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 3 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 6 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Income Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 08/31 | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 14 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 3 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 9 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 3 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 6 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Limited Term Municipal Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 03/31 | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 16 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 4 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 7 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 2 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 4 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Limited Duration Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 04/30 | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 16 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 3 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 7 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 3 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 3 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Limited Duration U.S. Treasury Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 05/31 | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 22 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 3 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 9 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 2 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 7 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Mortgage Securities Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 10/31 | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 12 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 3 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 8 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 2 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 6 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
New York Tax-Free Income Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 12/31 | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 15 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 3 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 8 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 2 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 6 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
Tax-Exempt Securities Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 12/31 | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 15 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 3 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 8 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 2 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 6 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
U.S. Government Securities Fund | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 12/31 | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 15 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 3 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 8 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 2 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | 6 | | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
C-1
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
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
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 A1 .. 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.
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
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; and (c) does not accept, directly or indirectly, any consulting, advisory or other compensatory fee from any of the Funds or their investment advisor or any affiliated person 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.’’
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
3. | MEETINGS OF THE GOVERNANCE COMMITTEE |
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
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
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.
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
4. | AUTHORITY |
The Governance Committee shall have the authority to carry out its duties and responsibilities as set forth in this Governance Committee Charter.
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
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 position to react or respond to changing circumstances or conditions. The following are the duties and responsibilities of the Governance Committee:
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| a. | Board Candidates and Nominees |
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| | The Governance Committee shall have the following goals and responsibilities with respect to Board candidates and nominees: |
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| i. | evaluate the suitability of potential trustee/director candidates proposed by Trustees, shareholders or others; |
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| 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 |
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| 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. |
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| | The Governance Committee shall have the following goals and principles with respect to Board corporate governance: |
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| 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: |
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| (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
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| (2) | trustee/director duties and responsibilities; |
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| (3) | trustee/director access to management, and, as necessary and appropriate, independent advisers; and |
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| (4) | trustee/director orientation and continuing education; |
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| 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; |
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
| iii. | consider other corporate governance issues that arise from time to time, and to develop appropriate recommendations for the Board; and |
The Governance Committee shall be responsible for overseeing the evaluation 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 management of the Fund to the Board, and whether the number and length of meetings of the Board were adequate for the Board 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 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.
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
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.
![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) | ![](https://capedge.com/proxy/DEF 14A/0000950136-06-004795/spacer.gif) |
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 THE MORGAN STANLEY FIXED INCOME 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 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 this proxy
card, all shares of the above Fund(s) held of record by the undersigned on May
30, 2006 at the Special Meetings 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 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 MSF_16422
MORGAN STANLEY FUNDS MORGAN STANLEY FUNDS MORGAN STANLEY FUNDS
-------------------- -------------------- --------------------
Fundname Drop In 1 Fundname Drop In 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: [SHADED BOX OMITTED]
--------------------------------------------------------------------------------------
[ ] 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
Fundname Drop In 1 [ ] [ ] [ ] Fundname Drop In 2 [ ] [ ] [ ]
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 [ ] [ ] [ ] Fundname Drop In 5 [ ] [ ] [ ] Fundname Drop In 6 [ ] [ ] [ ]
2.i. MORTGAGE-BACKED SECURITIES POLICY.
FOR AGAINST ABSTAIN
Fundname Drop In 1 [ ] [ ] [ ]
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 [ ] [ ] [ ]
3.f. "FULL FAITH AND CREDIT" POLICY.
FOR AGAINST ABSTAIN
Fundname Drop In 1 [ ] [ ] [ ]
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 [ ] [ ] [ ]