MORGAN STANLEY
SPECTRUM SERIES

October 2006
Monthly Report

This Monthly Report supplements the Spectrum Funds' Prospectus dated May 1,
2006.

Issued: November 30, 2006

MORGAN STANLEY

MORGAN STANLEY SPECTRUM SERIES
- --------------------------------------------------------------------------------
HISTORICAL FUND PERFORMANCE
- --------------------------------------------------------------------------------

Presented below is the percentage change in Net Asset Value per Unit from the
start of every calendar year each Fund has traded. Also provided is the
inception-to-date return and the compound annualized return since inception for
each Fund. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
FUND % % % % % % % % % % % % % % %
- -----------------------------------------------------------------------------------------------------------------------------------

Spectrum Currency -- -- -- -- -- -- -- -- -- 11.7 11.1 12.2 12.4 (8.0) (18.3)
(6 mos.)
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Spectrum Global Balanced -- -- -- (1.7) 22.8 (3.6) 18.2 16.4 0.8 0.9 (0.3) (10.1) 6.2 (5.6) 4.2
(2 mos.)
- -----------------------------------------------------------------------------------------------------------------------------------
Spectrum Select 31.2 (14.4) 41.6 (5.1) 23.6 5.3 6.2 14.2 (7.6) 7.1 1.7 15.4 9.6 (4.7) (5.0)
(5 mos.)
- -----------------------------------------------------------------------------------------------------------------------------------
Spectrum Strategic -- -- -- 0.1 10.5 (3.5) 0.4 7.8 37.2 (33.1) (0.6) 9.4 24.0 1.7 (2.6)
(2 mos.)
- -----------------------------------------------------------------------------------------------------------------------------------
Spectrum Technical -- -- -- (2.2) 17.6 18.3 7.5 10.2 (7.5) 7.8 (7.2) 23.3 23.0 4.4 (5.4)
(2 mos.)
- -----------------------------------------------------------------------------------------------------------------------------------

INCEPTION- COMPOUND
TO-DATE ANNUALIZED
2006 RETURN RETURN
FUND % % %
- ------------------------------------------------------

Spectrum Currency (10.5) 5.4 0.8
(10 mos.)
- ------------------------------------------------------
Spectrum Global Balanced 2.3 55.8 3.8
(10 mos.)
- ------------------------------------------------------
Spectrum Select 2.9 182.5 7.1
(10 mos.)
- ------------------------------------------------------
Spectrum Strategic 12.2 59.1 4.0
(10 mos.)
- ------------------------------------------------------
Spectrum Technical (1.7) 119.7 6.8
(10 mos.)
- ------------------------------------------------------

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DEMETER MANAGEMENT CORPORATION
- --------------------------------------------------------------------------------
330 Madison Avenue, 8th Floor
New York, NY 10017
Telephone (212) 905-2700

MORGAN STANLEY SPECTRUM SERIES
MONTHLY REPORT
OCTOBER 2006
Dear Limited Partner:

The Net Asset Value per Unit for each of the five Morgan Stanley Spectrum
Funds as of October 31, 2006 was as follows:

FUND N.A.V. % CHANGE FOR MONTH
- --------------------------------------------------------------------------------
Spectrum Currency $10.54 -0.95%
- --------------------------------------------------------------------------------
Spectrum Global Balanced $15.58 0.27%
- --------------------------------------------------------------------------------
Spectrum Select $28.25 0.33%
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Spectrum Strategic $15.91 4.28%
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Spectrum Technical $21.97 -0.54%
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Detailed performance information for each Fund is located in the body of the
financial report. For each Fund, we provide a trading results by sector chart
that portrays trading gains and trading losses for the previous month and
year-to-date in each sector in which the Fund participates. In the case of
Spectrum Currency, we provide the trading gains and trading losses for the five
major currencies in which the Fund participates, and composite information for
all other "minor" currencies traded within the Fund.

The trading results by sector charts indicate the monthly and year-to-date
composite percentage returns generated by the specific assets dedicated to
trading within each market sector in which each Fund participates. Please note
that there is not an equal amount of assets in each market sector, and the
specific allocations of assets by a Fund to each sector will vary over time
within a predetermined range. Below each chart is a description of the factors
that influenced trading gains and trading losses within each Fund during the
previous month.

LIMITED PARTNERS OF MORGAN STANLEY SPECTRUM SELECT L.P. ("SPECTRUM SELECT")
ARE REMINDED THAT EFFECTIVE NOVEMBER 1, 2006, THE MONTHLY MANAGEMENT FEE PAYABLE
TO RABAR MARKET RESEARCH, INC. ("RABAR") AND EMC CAPITAL MANAGEMENT, INC.
("EMC") WAS REDUCED FROM 1/4 OF 1% (A 3% ANNUAL RATE) TO 5/24 OF 1% (A 2.5%
ANNUAL RATE). ALSO, EFFECTIVE NOVEMBER 1, 2006, THE MONTHLY INCENTIVE FEE
PAYABLE TO RABAR AND EMC WAS INCREASED FROM 15% TO 17.5% OF THE TRADING PROFITS
EXPERIENCED WITH RESPECT TO THE NET ASSETS ALLOCATED TO RABAR AND EMC AS OF THE
END OF EACH CALENDAR MONTH.

LIMITED PARTNERS OF SPECTRUM SELECT ARE REMINDED THAT, SUBJECT TO CERTAIN
RESTRICTIONS, THEY HAVE THE RIGHT TO REDEEM THEIR UNITS OF LIMITED PARTNERSHIP
INTERESTS (THE "UNITS") ON A MONTHLY BASIS, AND THAT LIMITED PARTNERS OWNING
MORE THAN 50% OF THE OUTSTANDING UNITS OF SPECTRUM SELECT MAY VOTE TO TAKE
CERTAIN ACTIONS WITH RESPECT TO THE PARTNERSHIP, AS MORE FULLY SET FORTH IN
SECTION 15(c) OF THE LIMITED PARTNERSHIP AGREEMENT ON PAGE A-21 OF THE SPECTRUM
SERIES PROSPECTUS.

EFFECTIVE NOVEMBER 6, 2006, KEVIN PERRY WILL NO LONGER SERVE AS CHIEF
FINANCIAL OFFICER OF DEMETER.

EFFECTIVE NOVEMBER 6, 2006, LEE HORWITZ WILL SERVE AS CHIEF FINANCIAL OFFICER
OF DEMETER, AND WILL BE A PRINCIPAL OF DEMETER, SUBJECT TO APPROVAL BY AND
REGISTRATION WITH THE NATIONAL FUTURES ASSOCIATION.

LEE HORWITZ, AGE 55, CURRENTLY SERVES AS AN EXECUTIVE DIRECTOR AND CONTROLLER
WITHIN THE GLOBAL WEALTH MANAGEMENT GROUP AT MORGAN STANLEY. MR. HORWITZ JOINED
MORGAN STANLEY IN MARCH 1984 AND HAS HELD A VARIETY OF POSITIONS THROUGHOUT
MORGAN STANLEY'S ORGANIZATION DURING HIS TENURE. MR. HORWITZ RECEIVED A B.A.
DEGREE FROM QUEENS COLLEGE AND AN MBA FROM RUTGERS UNIVERSITY. MR. HORWITZ IS A
CERTIFIED PUBLICACCOUNTANT.

Should you have any questions concerning this report, please feel free to
contact Demeter Management Corporation, 330 Madison Avenue, 8th Floor, New York,
NY 10017 or your Morgan Stanley Financial Advisor.

I hereby affirm, that to the best of my knowledge and belief, the information
contained in this report is accurate and complete. Past performance is no
guarantee of future results.

Sincerely,

/s/ Walter J. Davis
- -------------------
Walter J. Davis

Chairman of the Board of Directors and President
Demeter Management Corporation
General Partner for
Morgan Stanley Spectrum Currency L.P.
Morgan Stanley Spectrum Global Balanced L.P.
Morgan Stanley Spectrum Select L.P.
Morgan Stanley Spectrum Strategic L.P.
Morgan Stanley Spectrum Technical L.P.

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MORGAN STANLEY SPECTRUM CURRENCY L.P.
- --------------------------------------------------------------------------------

(Data below represents bar chart in the printed piece)

Australian dollar 1.23 -0.93
British pound 2.11 2.78
Euro -1.03 -0.07
Japanese yen -1.07 -3.93
Swiss franc -0.75 -4.58
Minor Currencies -1.23 -0.58

Note: Reflects trading results only and does not include fees or interest
income.

Minor currencies may include, but are not limited to, the South
African rand, Thai baht, Singapore dollar, Mexican peso, New Zealand
dollar, Polish zloty, Brazilian real, Norwegian krone, and Czech
koruna.

During the month, the Fund incurred losses from short positions in the South
African rand, Japanese yen, euro, Swiss franc, Singapore dollar, and Czech
koruna versus the U.S. dollar. These losses were partially offset by gains from
long positions in the British pound, Australian dollar, New Zealand dollar, and
Mexican peso versus the U.S. dollar.

Losses were incurred from short positions in the South African rand, Japanese
yen, euro, Swiss franc, Singapore dollar, and Czech koruna versus the U.S.
dollar as the value of the U.S. dollar declined towards the latter half of the
month after the U.S. Department of Commerce reported slower-than-expected growth
in third quarter U.S. Gross Domestic Product, as well as a faster-than-expected
decline in consumer core inflation. As a result, the likelihood of an increase
in interest rates in the near-term was reduced. The value of the U.S. dollar
dropped further after the U.S. Federal Reserve held interest rates steady on
October 25. Additionally, the Japanese yen strengthened after the Swiss National
Bank said it raised its holdings of the Japanese currency last quarter, while
the euro moved higher after the Ifo survey showed an unexpected increase in
German business confidence. Meanwhile, the Swiss franc strengthened in tandem
with the euro.

Gains were recorded from long positions in the British pound, Australian dollar,
New Zealand dollar, and Mexican peso versus the U.S. dollar as the U.S. dollar
weakened on the aforementioned slow economic growth and easing inflation.
Additionally, the British pound trended higher following the release of strong
U.K. Consumer Price Index data and a prediction from National Institute for
Economic and Social Research that interest rates in the United Kingdom should
rise to 5.25% and would be likely to remain above 5% for the foreseeable future.
Finally, the value of the Australian dollar strengthened after a
better-than-expected construction performance index led investors to speculate
that the Reserve Bank of Australia might increase interest rates in the near
future.

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MORGAN STANLEY SPECTRUM GLOBAL BALANCED L.P.
- --------------------------------------------------------------------------------

(Data below represents bar chart in the printed piece)

Currencies -0.22 -0.38
Interest Rates -2.13 -1.98
Stock Indices 1.96 4.49
Energies -0.05 -0.35
Metals 0.05 1.05
Agriculturals 0.68 -0.7

Note: Reflects trading results only and does not include fees or interest
income.

During the month, the Fund experienced gains in the global stock index,
agricultural, and metals sectors. These gains were partially offset by losses
recorded in the global interest rate, currency, and energy sectors.

Within the global stock index sector, gains were experienced from long positions
in U.S. and European stock index futures as prices moved higher amid declining
energy prices and stronger-than-expected third quarter earnings. In addition,
U.S. equity index futures prices rose after the U.S. Federal Reserve's decision
to hold interest rates steady and its assessment that the U.S. economy would
continue to expand in the near-term but at a slower pace. Elsewhere in the
global stock index futures markets, European equity index futures prices moved
higher throughout the month due to consistent merger and acquisition activity,
as well as strong performance in the automobile, industrial, and technology
sectors.

Within the agricultural markets, gains were recorded from long positions in corn
futures as prices hit four-month highs after the U.S. Department of Agriculture
reduced its world ending stock estimate and increased demand from ethanol
producers. Long positions in soybean futures also recorded gains as prices
reversed higher on news of a smaller-than-expected crop from Brazil this year.
Finally, long positions in wheat futures recorded additional gains as prices
increased to ten-year highs after the U.S. Department of Agriculture reported
larger-than-expected global purchases.

Within the metals markets, gains were experienced from long positions in zinc
futures as prices rose amid labor protests in producer countries and news that
inventories tracked by the London Metal Exchange declined more-than-expected. In
addition, prices were pressured higher after the National Bureau of Statistics
said that China's industrial production increased 16.1% in September from a year
ago, reaffirming expectations that demand from China would stay strong.

A portion of these gains was offset by losses incurred within the global
interest rate markets from long positions in U.S., European, and Japanese
fixed-income futures as prices moved lower amid overall strength in the equity
markets. U.S. fixed-income futures prices declined amid weak demand after U.S.
economic reports showed unexpected strength in retail sales, business
inventories, and consumer sentiment. Elsewhere in the global interest rate
markets, German and British fixed-income futures prices declined on speculation
of another European Central Bank interest rate hike after government reports
showed higher industrial production in France and Italy, while Japanese
fixed-income futures prices fell after the quarterly Tankan survey showed
business confidence unexpectedly improved to a two-year high last month.
Additionally, Bank of Japan Governor Toshiro Muto suggested an interest rate
hike would be likely before year-end.

Within the currency markets, long positions in the U.S. dollar versus the South
African rand, Swiss franc, and euro incurred losses as the value of the U.S.
dollar declined towards the latter half of the month after the U.S. Department
of Commerce reported slower-than-expected growth in third quarter U.S. Gross
Domestic Product, as well as a faster-than-expected decline in consumer core
inflation. As a result, the likelihood of an increase in interest rates in the
near-term was reduced. Accordingly, the value of the U.S. dollar dropped further
after the U.S Federal Reserve held interest rates steady on October 25.

Within the energy markets, losses were recorded from short positions in natural
gas futures as prices reversed higher on speculation of increased demand after
near-term weather forecasts called for colder weather in much of the U.S.
Further losses within the energy sector were recorded from long positions in
Brent crude oil futures as prices weakened due to uncertainty regarding OPEC's
plan to cut production, as well as a lower demand forecast.

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MORGAN STANLEY SPECTRUM SELECT L.P.
- --------------------------------------------------------------------------------

(Data below represents bar chart in the printed piece)

Currencies -0.3 -3.01
Interest Rates -2.02 2.69
Stock Indices 1.99 2.99
Energies 1.01 -0.82
Metals 0.1 6.57
Agriculturals -0.13 -1.61

Note: Reflects trading results only and does not include fees or interest
income.

During the month, the Fund experienced gains in the global stock index, energy,
and metals sectors. A portion of these gains was offset by losses recorded in
the global interest rate, currency, and agricultural sectors.

Within the global stock index sector, gains were experienced from long positions
in U.S., European, and Hong Kong stock index futures as prices moved higher amid
declining energy prices and stronger-than-expected third quarter earnings. In
addition, U.S. equity index futures prices rose after the U.S. Federal Reserve's
decision to hold interest rates steady and its assessment that the U.S. economy
would continue to expand in the near-term but at a slower pace. Elsewhere,
European equity index futures prices moved higher throughout the month due to
consistent merger and acquisition activity, as well as strong performance in the
automobile, industrial, and technology sectors. Meanwhile, Hong Kong equity
index futures prices surged ahead of the world's largest initial public offering
in China.

Within the energy markets, gains were experienced from short positions in crude
oil futures and its related products as prices weakened due to uncertainty
regarding OPEC's plan to cut production, as well as a lower demand forecast.

Within the metals markets, long positions in zinc, aluminum, and nickel futures
resulted in gains as base metals prices continued to trend higher amid labor
protests in producer countries and news that inventories tracked by the London
Metal Exchange declined more-than-expected. Additionally, prices were pressured
higher after the National Bureau of Statistics said that China's industrial
production increased 16.1% in September from a year ago, reaffirming
expectations that demand from China would stay strong.

A portion of these gains was offset by losses incurred within the global
interest rate markets from long positions in U.S., European, and Pacific Rim
fixed-income futures as prices moved lower amid overall strength in the equity
markets. In addition, U.S. fixed-income futures prices declined amid weak demand
after U.S. economic reports showed unexpected strength in retail sales, business
inventories, and consumer sentiment. Elsewhere in the global interest rate
markets, German and British fixed-income futures prices declined on speculation
of another European Central Bank interest rate hike after government reports
showed higher industrial production in France and Italy, while Japanese
fixed-income futures prices fell after the quarterly Tankan survey showed
business confidence unexpectedly improved to a two-year high last month.
Additionally, Bank of Japan Governor Toshiro Muto suggested an interest rate
hike would be likely before year-end. Finally, Australian fixed-income futures
prices declined on speculation of strong third quarter Consumer Price Index
data.

Within the currency markets, long positions in the U.S. dollar versus the euro
and Japanese yen incurred losses as the value of the U.S. dollar declined
towards the latter half of the month after the U.S. Department of Commerce
reported slower-than-expected growth in third quarter U.S. Gross Domestic
Product, as well as a faster-than-expected decline in consumer core inflation.
As a result, the likelihood of an increase in interest rates in the near-term
was reduced. The value of the U.S. dollar continued to drop after the U.S
Federal Reserve held interest rates steady on October 25. Meanwhile, long
positions in the Canadian dollar versus the U.S. dollar incurred losses during
the beginning of the month as the value of the Canadian dollar fell after a
government report raised concerns that economic growth might slow. Additional
losses were experienced from newly established short positions in the Canadian
dollar versus the U.S. dollar as the value of the Canadian dollar reversed
higher against the U.S. dollar.

Within the agricultural markets, losses were incurred from short positions in
soybean and soybean meal futures as prices reversed higher on news of a
smaller-than-expected crop from Brazil this year. Elsewhere, short positions in
orange juice futures recorded losses as prices reached historic highs after the
U.S. Department of Agriculture predicted a sharp decline in Florida's orange
juice production levels.

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MORGAN STANLEY SPECTRUM STRATEGIC L.P.
- --------------------------------------------------------------------------------

(Data below represents bar chart in the printed piece)

Currencies -0.33 -3.39
Interest Rates 0.07 2.81
Stock Indices 1.14 2.72
Energies -0.15 -0.71
Metals 2.81 22.01
Agriculturals 1.33 -1.74

Note: Reflects trading results only and does not include fees or interest
income.

During the month, the Fund incurred gains across the metals, agricultural,
global stock index, and global interest rate sectors. These gains were partially
offset by losses recorded in the currency and energy sector.

Additionally, prices were pressured higher after the National Bureau of
Statistics said that China's industrial production increased 16.1% in September
from a year ago, reaffirming expectations that demand from China would stay
strong. Additional gains were experienced within the agricultural markets from
long positions in corn futures as prices hit four-month highs after the U.S.
Department of Agriculture reduced its world ending stock estimate and increased
demand from ethanol producers. Long positions in soybean meal futures also
recorded gains as prices reversed higher on news of a smaller-than-expected crop
from Brazil this year.

Within the global stock index sector, gains were experienced from long positions
in German, U.S., and Hong Kong stock index futures as prices moved higher amid
declining energy prices and stronger-than-expected third quarter earnings.
Within German equity index futures, prices moved higher throughout the month due
to consistent merger and acquisition activity, as well as strong performance in
the automobile, industrial, and technology sectors. Meanwhile, U.S. equity
prices rose after the U.S. Federal Reserve's decision to hold interest rates
steady and its assessment that the U.S. economy would continue to expand in the
near-term but at a slower pace. Elsewhere, Hong Kong equity index futures prices
surged ahead of the world's largest initial public offering in China.

Smaller gains were recorded in the global interest rate markets from short
positions in European and U.S. fixed-income futures as priced moved lower amid
overall strength in the equity markets. British fixed-income futures prices
declined on speculation of another European Central Bank interest rate hike
after government reports showed higher industrial production in France and
Italy, while U.S. fixed-income futures prices declined amid weak demand after
U.S. economic reports showed unexpected strength in retail sales, business
inventories, and consumer sentiment. Additional gains were recorded from newly
established long positions in German interest rate futures as prices moved
higher towards the end of the month on fears of a global economic slow-down
after the release of weaker-than-expected U.S. Gross Domestic Product.

A portion of these gains was offset by losses incurred in the currency markets
from long positions in the U.S. dollar versus the Swiss franc and Japanese yen
as the value of the U.S. dollar declined towards the latter half of the month
after the U.S. Department of Commerce reported slower-than-expected growth in
third quarter U.S. Gross Domestic Product, as well as a faster-than-expected
decline in consumer core inflation. As a result, the likelihood of an increase
in interest rates in the near-term was reduced. The value of the U.S. dollar
dropped further after the U.S Federal Reserve held interest rates steady on
October 25. Meanwhile, long positions in the Canadian dollar versus the U.S.
dollar incurred losses during the beginning of the month as the value of the
Canadian dollar fell after a government report raised concerns that economic
growth might slow. Additional losses were experienced from newly established
short positions in the Canadian dollar versus the U.S. dollar as the value of
the Canadian dollar reversed higher against the U.S. dollar.

Smaller losses were recorded within the energy markets from long positions in
gasoline futures as prices weakened due to uncertainty regarding OPEC's plan to
cut production, as well as a lower demand forecast.

- --------------------------------------------------------------------------------
MORGAN STANLEY SPECTRUM TECHNICAL L.P.
- --------------------------------------------------------------------------------

(Data below represents bar chart in the printed piece)

Currencies 0.21 -5.99
Interest Rates -1.72 0.98
Stock Indices 2.01 5.76
Energies -0.25 -3.15
Metals 0.37 8.64
Agriculturals -0.83 -2.69

Note: Reflects trading results only and does not include fees or interest
income.

During the month, the Fund experienced losses across the global interest rate,
agricultural, and energy sectors. These losses were partially offset by gains
recorded in the global stock index, metals, and currency sectors.

Within the global interest rate markets, losses were incurred from long
positions in European, Japanese, and U.S. fixed-income futures as prices moved
lower amid overall strength in the equity markets. In addition, German and
British fixed-income futures prices declined on speculation of another European
Central Bank interest rate hike after government reports showed higher
industrial production in France and Italy, while Japanese fixed-income futures
prices fell after the quarterly Tankan survey showed business confidence
unexpectedly improved to a two-year high last month. In addition, Bank of Japan
Governor Toshiro Muto suggested an interest rate hike would be likely before
year-end. Finally, U.S. fixed-income futures prices declined amid weak demand
after U.S. economic reports showed unexpected strength in retail sales, business
inventories, and consumer sentiment.

Within the agricultural markets, losses were incurred from short positions in
soybean and soybean meal futures as prices reversed higher on news of a
smaller-than-expected crop from Brazil this year. Elsewhere in the agricultural
complex, short positions in lean hog futures incurred further losses as prices
moved higher on concerns that rising grain prices would lead to reductions in
future pork production.

Within the energy markets, losses were experienced from long positions in crude
oil futures and its related products as prices weakened due to uncertainty
regarding OPEC's plan to cut production, as well as a lower demand forecast.

A portion of these losses was offset by gains within the global stock index
sector from long positions in U.S., European, and Hong Kong stock index futures
as prices moved higher amid declining energy prices and stronger-than-expected
third quarter earnings. In addition, U.S. equity prices rose after the U.S.
Federal Reserve's decision to hold interest rates steady and its assessment that
the U.S. economy would continue to expand in the near-term but at a slower pace.
Elsewhere, European equity index futures prices moved higher throughout the
month due to consistent merger and acquisition activity, as well as strong
performance in the automobile, industrial, and technology sectors. Meanwhile,
Hong Kong equity index futures prices surged ahead of the world's largest
initial public offering in China.

Within the metals markets, long positions in zinc and aluminum futures resulted
in gains as base metals prices continued to trend higher amid labor protests in
producer countries and news that inventories tracked by the London Metal
Exchange declined more-than-expected. Additionally, prices were pressured higher
after the National Bureau of Statistics said that China's industrial production
increased 16.1% in September from a year ago, reaffirming expectations that
demand from China would stay strong.

Within the currency markets, gains were recorded from long positions in the
Australian dollar relative to the U.S. dollar as the value of the Australian
dollar strengthened against most of its major rivals after news of a
better-than-expected construction performance index, which led investors to
speculate that the Reserve Bank of Australia could increase rates in the near
future. Elsewhere in the currency markets, long positions in the British pound
against the U.S. dollar experienced gains as the British pound trended higher
against most major currencies following the release of strong U.K. Consumer
Price Index data and a prediction from National Institute for Economic and
Social Research that interest rates in the United Kingdom should rise to 5.25%
and would be likely to remain above 5% for the foreseeable future. Smaller gains
were recorded from long positions in the British pound versus the euro as the
value of the pound moved higher against most of its major rivals due to the
aforementioned reasons. The accompanying notes are an integral part of these
financial statements.

MORGAN STANLEY SPECTRUM SERIES
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
FOR THE MONTH ENDED OCTOBER 31, 2006 (UNAUDITED)

MORGAN STANLEY MORGAN STANLEY
SPECTRUM CURRENCY SPECTRUM GLOBAL BALANCED
------------------------------ --------------------------
PERCENTAGE OF PERCENTAGE OF
OCTOBER 1, 2006 OCTOBER 1, 2006
BEGINNING BEGINNING
AMOUNT NET ASSET VALUE AMOUNT NET ASSET VALUE
------------ --------------- ------------ ---------------

$ % $ %
INVESTMENT INCOME
Interest income (Note 2) 534,463 .33 173,622 .41
------------ ------- ------------ ------
EXPENSES
Brokerage fees (Note 2) 627,707 .38 162,074 .38
Management fees (Note 3) 272,915 .17 44,041 .10
------------ ------- ------------ -----
Total Expenses 900,622 .55 206,115 .48
------------ ------- ------------ ------
NET INVESTMENT LOSS (366,159) (.22) (32,493) (.07)
------------ ------- ------------ ------
TRADING RESULTS
Trading profit (loss):
Realized -- -- 100,746 .24
Net change in unrealized (1,194,823) (.73) 44,094 .10
------------ ------- ------------ ------
Total Trading Results (1,194,823) (.73) 144,840 .34
------------ ------- ------------ ------
NET INCOME (LOSS) (1,560,982) (.95) 112,347 .27
============ ======= ============ ======

MORGAN STANLEY SPECTRUM SERIES
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSET VALUE
- --------------------------------------------------------------------------------
FOR THE MONTH ENDED OCTOBER 31, 2006 (UNAUDITED)

MORGAN STANLEY MORGAN STANLEY
SPECTRUM CURRENCY SPECTRUM GLOBAL BALANCED
----------------------------------------- --------------------------------------
PER PER
UNITS AMOUNT UNIT UNITS AMOUNT UNIT
-------------- ------------ --------- ------------- --------- ------

$ $ $ $
Net Asset Value,
October 1, 2006 15,384,294.172 163,749,636 10.64 2,721,686.614 42,280,155 15.53
Net Income (Loss) -- (1,560,982) (.10) -- 112,347 .05
Redemptions (431,309.120) (4,545,998) 10.54 (57,903.805) (902,141) 15.58
Subscriptions 71,874.941 757,562 10.54 9,643.522 150,246 15.58
-------------- ----------- ------------- ----------
Net Asset Value,
October 31, 2006 15,024,859.993 158,400,218 10.54 2,673,426.331 41,640,607 15.58
============== =========== ============= ==========

The accompanying notes are an integral part of these financial statements.

MORGAN STANLEY MORGAN STANLEY MORGAN STANLEY
SPECTRUM SELECT SPECTRUM STRATEGIC SPECTRUM TECHNICAL
------------------------------ --------------------------- -----------------------------
PERCENTAGE OF PERCENTAGE OF PERCENTAGE OF
OCTOBER 1, 2006 OCTOBER 1, 2006 OCTOBER 1, 2006
BEGINNING BEGINNING BEGINNING
AMOUNT NET ASSET VALUE AMOUNT NET ASSET VALUE AMOUNT NET ASSET VALUE
------------ ---------------- ----------- ---------------- ------------ ---------------

$ % $ % $ %

INVESTMENT INCOME
Interest income (Note 2) 1,738,028 .33 583,892 .31 2,330,157 .33
------------ ----- ------------ ----- ------------ -----
EXPENSES
Brokerage fees (Note 2) 2,672,948 .50 931,226 .50 3,584,357 .50
Management fees (Note 3) 1,272,772 .24 433,739 .23 1,552,117 .23
------------ ----- ------------ ----- ------------ -----
Total Expenses 3,945,720 .74 1,364,965 .73 5,136,474 .73
------------ ----- ------------ ----- ------------ -----
NET INVESTMENT LOSS (2,207,692) (.41) (781,073) (.42) (2,806,317) (.40)
------------ ----- ------------ ----- ------------ -----
TRADING RESULTS
Trading profit (loss):
Realized (173,858) (.03) (1,311,417) (.70) (18,223,620) (2.54)
Net change in unrealized 4,139,538 .77 10,059,700 5.40 17,173,118 2.40
------------ ----- ------------ ----- ------------ -----
Total Trading Results 3,965,680 .74 8,748,283 4.70 (1,050,502) (.14)
------------ ----- ------------ ----- ------------ -----
NET INCOME (LOSS) 1,757,988 .33 7,967,210 4.28 (3,856,819) (.54)
============ ===== ============ ===== ============ =====

MORGAN STANLEY MORGAN STANLEY MORGAN STANLEY
SPECTRUM SELECT SPECTRUM STRATEGIC SPECTRUM TECHNICAL
----------------------------------- ----------------------------------- -------------------------------------
PER PER PER
UNITS AMOUNT UNIT UNITS AMOUNT UNIT UNITS AMOUNT UNIT
-------------- ----------- ----- -------------- ----------- ----- -------------- ----------- -----

$ $ $ $ $ $
Net Asset Value,
October 1, 2006 18,988,433.647 534,589,536 28.15 12,203,541.155 186,245,294 15.26 32,458,878.730 716,871,465 22.09
Net Income (Loss) -- 1,757,988 .10 -- 7,967,210 .65 -- (3,856,819) (.12)
Redemptions (287,521.584) (8,122,485) 28.25 (205,051.842) (3,262,375) 15.91 (508,039.516) (11,161,628) 21.97
Subscriptions 199,375.170 5,632,349 28.25 202,058.953 3,214,758 15.91 406,430.897 8,929,287 21.97
-------------- ----------- -------------- ----------- -------------- -----------
Net Asset Value,
October 31, 2006 18,900,287.233 533,857,388 28.25 12,200,548.266 194,164,887 15.91 32,357,270.111 710,782,305 21.97
============== =========== ============== =========== ============== ===========

MORGAN STANLEY SPECTRUM SERIES
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NOTES TO FINANCIAL STATEMENTS
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(UNAUDITED)
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1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION. Morgan Stanley Spectrum Currency L.P. ("Spectrum Currency"),
Morgan Stanley Spectrum Global Balanced L.P. ("Spectrum Global Balanced"),
Morgan Stanley Spectrum Select L.P. ("Spectrum Select"), Morgan Stanley Spectrum
Strategic L.P. ("Spectrum Strategic"), and Morgan Stanley Spectrum Technical
L.P. ("Spectrum Technical") (individually, a "Partnership", or collectively, the
"Partnerships"), are limited partnerships organized to engage primarily in the
speculative trading of futures contracts, options on futures and forward
contracts, and forward contracts on physical commodities and other commodity
interests, including, but not limited to, foreign currencies, financial
instruments, metals, energy, and agricultural products (collectively, "Futures
Interests").

The general partner for each Partnership is Demeter Management Corporation
("Demeter"). The non-clearing commodity broker is Morgan Stanley DW Inc.
("Morgan Stanley DW"). The clearing commodity brokers for Spectrum Global
Balanced, Spectrum Select, Spectrum Strategic, and Spectrum Technical are Morgan
Stanley & Co. Incorporated ("MS & Co.") and Morgan Stanley & Co. International
Limited ("MSIL"). Spectrum Currency's clearing commodity broker is MS & Co. For
Spectrum Strategic and Spectrum Technical, Morgan Stanley Capital Group Inc.
("MSCG") acts as the counterparty on all of the options on foreign currency
forward contracts. Demeter, Morgan Stanley DW, MS & Co., MSIL, and MSCG are
wholly-owned subsidiaries of Morgan Stanley.

Demeter is required to maintain a 1% minimum interest in the equity of each
Partnership and income (losses) are shared by Demeter and the limited partners
based upon their proportional ownership interests.

USE OF ESTIMATES. The financial statements are prepared in accordance with
accounting principles generally accepted in the United States of America, which
require management to make estimates and assumptions that affect the reported
amounts in the financial statements and related disclosures. Management believes
that the estimates utilized in the preparation of the financial statements are
prudent and reasonable. Actual results could differ from those estimates.

REVENUE RECOGNITION. Futures Interests are open commitments until settlement
date, at which time they are realized. They are valued at market on a daily
basis and the resulting net change in unrealized gains and losses is reflected
in the change in unrealized trading profit (loss) on open contracts from one
period to the next on the Statements of Operations.Monthly, Morgan Stanley DW
pays each Partnership interest income equal to 80% of the month's average daily
"Net Assets" (as defined in the Limited Partnership Agreements) in the case of
Spectrum Currency, Spectrum Select, Spectrum Strategic, and Spectrum Technical,
and on 100% in the case of Spectrum Global Balanced. The interest rate is equal
to a prevailing rate on U.S. Treasury bills. For purposes of such interest
payments, Net Assets do not include monies owed to the Partnerships on Futures
Interests.

The Partnerships' functional currency is the U.S. dollar; however, they
transact business in currencies other than the U.S. dollar. Assets and
liabilities denominated in currencies other than the U.S. dollar are translated
into U.S. dollars at the rates in effect at the date of the Statements of
Changes in Net Asset Value. Income and expense items denominated in currencies
other than the U.S. dollar are translated into U.S. dollars at the rates in
effect during the period. Gains and losses resulting from the translation to
U.S. dollars are reported in income currently.

NET INCOME (LOSS) PER UNIT. Net income (loss) per unit of limited partnership
interest ("Unit(s)") is computed using the weighted average number of Units
outstanding during the period.

BROKERAGE AND RELATED TRANSACTION FEES AND COSTS. The brokerage fees for
Spectrum Currency and Spectrum Global Balanced are accrued at a flat monthly
rate of 1/12 of 4.6% (a 4.6% annual rate) of Net Assets as of the first day of
each month.

Brokerage fees for Spectrum Select, Spectrum Strategic, and Spectrum
Technical are accrued at a flat monthly rate of 1/12 of 6.00% (a 6.00% annual
rate) of Net Assets as of the first day of each month.

Such brokerage fees currently cover all brokerage fees, transaction fees and
costs, and ordinary administrative and continuing offering expenses.

OPERATING EXPENSES. The Partnerships incur monthly management fees and may incur
incentive fees. All common administrative and continuing offering expenses
including legal, auditing, accounting, filing fees, and other related expenses
are borne by Morgan Stanley DW through the brokerage fees paid by the
Partnerships.

CONTINUING OFFERING. Units of each Partnership are offered at a price equal to
100% of the Net Asset Value per Unit as of the close of business on the last day
of each month. No selling commissions or charges related to the continuing
offering of Units are paid by the limited partners or the Partnerships. Morgan
Stanley DW pays all such costs.

REDEMPTIONS. Limited partners may redeem some or all of their Units at 100% of
the Net Asset Value per Unit as of the end of the last day of any month that is
at least six months after the closing at which a person first becomes a limited
partner. The Request for Redemption must be delivered to a limited partner's
local Morgan Stanley Branch Office in time for it to be forwarded and received
by Demeter no later than 3:00 p.m., New York City time, on the last day of the
month in which the redemption is to be effective. Redemptions must be made in
whole Units, in a minimum amount of 50 Units required for each redemption,
unless a limited partner is redeeming his entire interest in a Partnership.

Units redeemed on or prior to the last day of the twelfth month from the date
of purchase will be subject to a redemption charge equal to 2% of the Net Asset
Value of a Unit on the Redemption Date. Units redeemed after the last day of the
twelfth month and on or prior to the last day of the twenty-fourth month from
the date of purchase will be subject to a redemption charge equal to 1% of the
Net Asset Value of a Unit on the Redemption Date. Units redeemed after the last
day of the twenty-fourth month from the date of purchase will not be subject to
a redemption charge. The foregoing redemption charges are paid to Morgan Stanley
DW.

EXCHANGES. On the last day of the first month which occurs more than six months
after a person first becomes a limited partner in any of the Partnerships, and
at the end of each month thereafter, limited partners may exchange their
investment among the Partnerships (subject to certain restrictions outlined in
the Limited Partnership Agreements) without paying additional charges.

DISTRIBUTIONS. Distributions, other than redemptions of Units, are made on a
pro-rata basis at the sole discretion of Demeter. No distributions have been
made to date. Demeter does not intend to make any distributions of the
Partnerships' profits.

INCOME TAXES. No provision for income taxes has been made in the accompanying
financial statements, as partners are individually responsible for reporting
income or loss based upon their respective share of each Partnership's revenues
and expenses for income tax purposes.

DISSOLUTION OF THE PARTNERSHIPS. Spectrum Currency, Spectrum Global Balanced,
Spectrum Strategic, and Spectrum Technical will terminate on December 31, 2035
and Spectrum Select will terminate on December 31, 2025, regardless of financial
condition at such time, or at an earlier date if certain conditions occur as
defined in each Partnership's Limited Partnership Agreement.

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2. RELATED PARTY TRANSACTIONS

The Partnerships pay brokerage fees to Morgan Stanley DW as described in Note 1.
Spectrum Global Balanced, Spectrum Select, Spectrum Strategic, and Spectrum
Technical's cash is on deposit with Morgan Stanley DW, MS & Co., and MSIL, and
Spectrum Currency's cash is on deposit with Morgan Stanley DW and MS & Co., in
futures interests trading accounts to meet margin requirements as needed. Morgan
Stanley DW pays interest on these funds as described in Note 1.

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3. TRADING ADVISORS

Demeter, on behalf of each Partnership, retains certain commodity trading
advisors to make all trading decisions for the Partnerships. The trading
advisors for each Partnership are as follows:

Morgan Stanley Spectrum Currency L.P.
John W. Henry & Company, Inc.
Sunrise Capital Partners, LLC

Morgan Stanley Spectrum Global Balanced L.P.
SSARIS Advisors, LLC

Morgan Stanley Spectrum Select L.P.
EMC Capital Management, Inc. ("EMC")
Northfield Trading L.P. ("Northfield")
Rabar Market Research, Inc. ("Rabar")
Sunrise Capital Management, Inc. ("Sunrise")
Graham Capital Management, L.P. ("Graham")

Morgan Stanley Spectrum Strategic L.P.
Blenheim Capital Management, L.L.C. ("Blenheim")
Eclipse Capital Management, Inc. ("Eclipse")
FX Concepts (Trading Advisor), Inc. ("FX Concepts")

Morgan Stanley Spectrum Technical L.P.
Campbell & Company, Inc. ("Campbell")
Chesapeake Capital Corporation ("Chesapeake")
John W. Henry & Company, Inc. ("JWH")
Winton Capital Management Limited ("Winton")

Compensation to the trading advisors by the Partnerships consists of a
management fee and an incentive fee as follows:

MANAGEMENT FEE. The management fee for Spectrum Currency is accrued at a rate of
1/12 of 2% per month of Net Assets allocated to each trading advisor on the
first day of each month (a 2% annual rate).

The management fee for Spectrum Global Balanced is accrued at a rate of 5/48
of 1% per month of Net Assets allocated to its sole trading advisor on the first
day of each month (a 1.25% annual rate).

The management fee for Spectrum Select is accrued at a rate of 1/4 of 1% per
month of Net Assets allocated to EMC, Northfield, Rabar, and Sunrise on the
first day of each month (a 3% annual rate) and 1/12 of 2% per month of Net
Assets allocated to Graham on the first day of each month (a 2% annual rate).

Effective November 1, 2006, the monthly management fee payable to EMC and
Rabar was reduced to 5/24 of 1% (a 2.5% annual rate).

The management fee for Spectrum Strategic is accrued at a rate of 1/12 of 3%
per month of Net Assets allocated to Blenheim and Eclipse on the first day of
each month (a 3% annual rate) and 1/12 of 2% per month of Net Assets allocated
to FX Concepts on the first day of each month (a 2% annual rate).

The management fee for Spectrum Technical is accrued at a rate of 1/12 of 2%
per month of Net Assets allocated to JWH and Winton on the first day of each
month (a 2% annual rate) and 1/12 of 3% per month of Net Assets allocated to
Campbell and Chesapeake on the first day of each month (a 3% annual rate).

INCENTIVE FEE. Spectrum Currency pays a monthly incentive fee equal to 20% of
the trading profits experienced with respect to each trading advisor's allocated
Net Assets as of the end of each calendar month.

Spectrum Global Balanced pays a monthly incentive fee equal to 15% of the
trading profits experienced with respect to its sole trading advisor's allocated
Net Assets as of the end of each calendar month.

Spectrum Select pays a monthly incentive fee equal to 15% of the trading
profits experienced with respect to the Net Assets allocated to each of EMC,
Northfield, Rabar, and Sunrise as of the end of each calendar month and 20% of
the trading profits experienced with respect to the Net Assets allocated to
Graham as of the end of each calendar month.

Effective November 1, 2006, the monthly incentive fee payable to EMC and
Rabar was increased to 17.5% of the trading profits experienced with respect to
the Net Assets allocated to EMC and Rabar as of the end of each calendar month.

Spectrum Strategic pays a monthly incentive fee equal to 15% of the trading
profits experienced with respect to the Net Assets allocated to each of Blenheim
and Eclipse as of the end of each calendar month and 20% of the trading profits
experienced with respect to the Net Assets allocated to FX Concepts as of the
end of each calendar month.

Spectrum Technical pays a monthly incentive fee equal to 20% of the trading
profits experienced with respect to the Net Assets allocated to each of
Campbell, JWH, and Winton as of the end of each calendar month and 19% of the
trading profits experienced with respect to the Net Assets allocated to
Chesapeake as of the end of each calendar month.

Trading profits represent the amount by which profits from futures, forwards,
and options trading exceed losses after brokerage and management fees are
deducted.

For all Partnerships with trading losses, no incentive fee is paid in
subsequent months until all such losses are recovered. Cumulative trading losses
are adjusted on a pro-rata basis for the net amount of each month's
subscriptions and redemptions.

MANAGED FUTURES INVESTMENTS ARE SPECULATIVE, INVOLVE A HIGH DEGREE OF RISK, USE
SIGNIFICANT LEVERAGE, ARE GENERALLY ILLIQUID, HAVE SUBSTANTIAL CHARGES, ARE
SUBJECT TO CONFLICTS OF INTEREST, AND ARE SUITABLE ONLY FOR THE RISK CAPITAL
PORTION OF AN INVESTOR'S PORTFOLIO. BEFORE INVESTING IN ANY MANAGED FUTURES
INVESTMENT, QUALIFIED INVESTORS SHOULD READ THE PROSPECTUS OR OFFERING DOCUMENTS
CAREFULLY FOR ADDITIONAL INFORMATION WITH RESPECT TO CHARGES, EXPENSES, AND
RISKS. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.

Demeter Management Corporation
330 Madison Avenue, 8th Floor
New York, NY 10017

Morgan Stanley

ADDRESS SERVICE REQUESTED

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