CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND SENIOR FINANCIAL OFFICERS
ADOPTED SEPTEMBER 28, 2004
I. This Code of Ethics (the "Code") for the investment companies within the
Morgan Stanley complex identified in Exhibit A (collectively, "Funds" and
each, a "Fund") applies to each Fund's Principal Executive Officer,
President, Principal Financial Officer and Treasurer (or persons
performing similar functions) ("Covered Officers" each of whom are set
forth in Exhibit B) for the purpose of promoting:
honest and ethical conduct, including the ethical handling of actual or apparent
conflicts of interest between personal and professional relationships.
full, fair, accurate, timely and understandable disclosure in reports and
documents that a company files with, or submits to, the Securities and Exchange
Commission ("SEC") and in other public communications made by the Fund;
compliance with applicable laws and governmental rules and regulations;
prompt internal reporting of violations of the Code to an appropriate person or
persons identified in the Code; and
accountability for adherence to the Code.
Each Covered Officer should adhere to a high standard of business
ethics and should be sensitive to situations that may give rise to actual as
well as apparent conflicts of interest. Any question about the application of
the Code should be referred to the General Counsel or his/her designee (who is
set forth in Exhibit C).
II. COVERED OFFICERS SHOULD HANDLE ETHICALLY ACTUAL AND APPARENT CONFLICTS OF
INTEREST
OVERVIEW. A "conflict of interest" occurs when a Covered Officer's private
interest interferes, or appears to interfere, with the interests of, or his
service to, the Fund. For example, a conflict of interest would arise if a
Covered Officer, or a member of his family, receives improper personal benefits
as a result of his position with the Fund.
Certain conflicts of interest arise out of the relationships between
Covered Officers and the Fund and already are subject to conflict of interest
provisions in the Investment Company Act of 1940 ("Investment Company Act") and
the Investment Advisers Act of 1940 ("Investment Advisers Act"). For example,
Covered Officers may not individually engage in certain transactions (such as
the purchase or sale of securities or other property) with the Fund because of
their status as "affiliated persons" (as defined in the Investment Company Act)
of the Fund. The Fund's and its investment adviser's compliance programs and
procedures are designed to prevent, or identify and correct,
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violations of these provisions. This Code does not, and is not intended to,
repeat or replace these programs and procedures, and such conflicts fall outside
the parameters of this Code, unless or until the General Counsel determines that
any violation of such programs and procedures is also a violation of this Code.
Although typically not presenting an opportunity for improper personal
benefit, conflicts may arise from, or as a result of, the contractual
relationship between the Fund and its investment adviser of which the Covered
Officers are also officers or employees. As a result, this Code recognizes that
the Covered Officers will, in the normal course of their duties (whether
formally for the Fund or for the investment adviser, or for both), be involved
in establishing policies and implementing decisions that will have different
effects on the Fund and its investment adviser. The participation of the Covered
Officers in such activities is inherent in the contractual relationship between
the Fund and the investment adviser and is consistent with the performance by
the Covered Officers of their duties as officers of the Fund. Thus, if performed
in conformity with the provisions of the Investment Company Act and the
Investment Advisers Act, such activities will be deemed to have been handled
ethically. In addition, it is recognized by the Funds' Boards of
Directors/Trustees ("Boards") that the Covered Officers may also be officers or
employees of one or more other investment companies covered by this or other
codes.
Other conflicts of interest are covered by the Code, even if such
conflicts of interest are not subject to provisions in the Investment Company
Act and the Investment Advisers Act. The following list provides examples of
conflicts of interest under the Code, but Covered Officers should keep in mind
that these examples are not exhaustive. The overarching principle is that the
personal interest of a Covered Officer should not be placed improperly before
the interest of the Fund.
Each Covered Officer must not:
use his personal influence or personal relationships improperly to influence
investment decisions or financial reporting by the Fund whereby the Covered
Officer would benefit personally (directly or indirectly);
cause the Fund to take action, or fail to take action, for the individual
personal benefit of the Covered Officer rather than the benefit of the Fund; or
use material non-public knowledge of portfolio transactions made or contemplated
for, or actions proposed to be taken by, the Fund to trade personally or cause
others to trade personally in contemplation of the market effect of such
transactions.
Each Covered Officer must, at the time of signing this Code, report to the
General Counsel all affiliations or significant business relationships outside
the Morgan Stanley complex and must update the report annually.
Conflict of interest situations should always be approved by the General
Counsel and communicated to the relevant Fund or Fund's Board. Any activity or
relationship that would present such a conflict for a Covered Officer would
likely also present a conflict for the Covered Officer if an immediate member of
the Covered Officer's family
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living in the same household engages in such an activity or has such a
relationship. Examples of these include:
service or significant business relationships as a director on the board of any
public or private company;
accepting directly or indirectly, anything of value, including gifts and
gratuities in excess of $100 per year from any person or entity with which the
Fund has current or prospective business dealings, not including occasional
meals or tickets for theatre or sporting events or other similar entertainment;
provided it is business-related, reasonable in cost, appropriate as to time and
place, and not so frequent as to raise any question of impropriety;
any ownership interest in, or any consulting or employment relationship with,
any of the Fund's service providers, other than its investment adviser,
principal underwriter, or any affiliated person thereof; and
a direct or indirect financial interest in commissions, transaction charges or
spreads paid by the Fund for effecting portfolio transactions or for selling or
redeeming shares other than an interest arising from the Covered Officer's
employment, such as compensation or equity ownership.
III. DISCLOSURE AND COMPLIANCE
Each Covered Officer should familiarize himself/herself with the disclosure and
compliance requirements generally applicable to the Funds;
each Covered Officer must not knowingly misrepresent, or cause others to
misrepresent, facts about the Fund to others, whether within or outside the
Fund, including to the Fund's Directors/Trustees and auditors, or to
governmental regulators and self-regulatory organizations;
each Covered Officer should, to the extent appropriate within his area of
responsibility, consult with other officers and employees of the Funds and their
investment advisers with the goal of promoting full, fair, accurate, timely and
understandable disclosure in the reports and documents the Funds file with, or
submit to, the SEC and in other public communications made by the Funds; and
it is the responsibility of each Covered Officer to promote compliance with the
standards and restrictions imposed by applicable laws, rules and regulations.
IV. REPORTING AND ACCOUNTABILITY
Each Covered Officer must:
upon adoption of the Code (thereafter as applicable, upon becoming a Covered
Officer), affirm in writing to the Boards that he has received, read and
understands the Code;
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annually thereafter affirm to the Boards that he has complied with the
requirements of the Code;
not retaliate against any other Covered Officer, other officer or any employee
of the Funds or their affiliated persons for reports of potential violations
that are made in good faith; and
notify the General Counsel promptly if he/she knows or suspects of any violation
of this Code. Failure to do so is itself a violation of this Code.
The General Counsel is responsible for applying this Code to specific
situations in which questions are presented under it and has the authority to
interpret this Code in any particular situation. However, any waivers(2) sought
by a Covered Officer must be considered by the Board of the relevant Fund or
Funds.
The Funds will follow these procedures in investigating and enforcing this
Code:
the General Counsel will take all appropriate action to investigate any
potential violations reported to him;
if, after such investigation, the General Counsel believes that no violation has
occurred, the General Counsel is not required to take any further action;
any matter that the General Counsel believes is a violation will be reported to
the relevant Fund's Audit Committee;
if the directors/trustees/managing general partners who are not "interested
persons" as defined by the Investment Company Act (the "Independent
Directors/Trustees/Managing General Partners") of the relevant Fund concur that
a violation has occurred, they will consider appropriate action, which may
include review of, and appropriate modifications to, applicable policies and
procedures; notification to appropriate personnel of the investment adviser or
its board; or a recommendation to dismiss the Covered Officer or other
appropriate disciplinary actions;
the Independent Directors/Trustees/Managing General Partners of the relevant
Fund will be responsible for granting waivers of this Code, as appropriate; and
any changes to or waivers of this Code will, to the extent required, be
disclosed as provided by SEC rules.
V. OTHER POLICIES AND PROCEDURES
This Code shall be the sole code of ethics adopted by the Funds for
purposes of Section 406 of the Sarbanes-Oxley Act of 2002 and the rules and
forms applicable to
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(2) Item 2 of Form N-CSR defines "waiver" as "the approval by the registrant of
a material departure from a provision of the code of ethics."
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registered investment companies thereunder. Insofar as other policies or
procedures of the Funds, the Funds' investment advisers, principal underwriters,
or other service providers govern or purport to govern the behavior or
activities of the Covered Officers who are subject to this Code, they are
superseded by this Code to the extent that they overlap or conflict with the
provisions of this Code unless any provision of this Code conflicts with any
applicable federal or state law, in which case the requirements of such law will
govern. The Funds' and their investment advisers' and principal underwriters'
codes of ethics under Rule 17j-1 under the Investment Company Act and Morgan
Stanley's Code of Ethics are separate requirements applying to the Covered
Officers and others, and are not part of this Code.
VI. AMENDMENTS
Any amendments to this Code, other than amendments to Exhibits A, B
or C, must be approved or ratified by a majority vote of the Board of each Fund,
including a majority of Independent Directors/Trustees/Managing General
Partners.
VII. CONFIDENTIALITY
All reports and records prepared or maintained pursuant to this Code will
be considered confidential and shall be maintained and protected accordingly.
Except as otherwise required by law or this Code, such matters shall not be
disclosed to anyone other than the Independent Directors/Trustees/Managing
General Partners of the relevant Fund or Funds and their counsel, the relevant
Fund or Funds and their counsel and the relevant investment adviser and its
counsel.
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VIII. INTERNAL USE
The Code is intended solely for the internal use by the Funds and does not
constitute an admission, by or on behalf of any Fund, as to any fact,
circumstance, or legal conclusion
I have read and understand the terms of the above Code. I recognize the
responsibilities and obligations incurred by me as a result of my being subject
to the Code. I hereby agree to abide by the above Code.
__________________________
Date:_____________________
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EXHIBIT B
INSTITUTIONAL FUNDS
COVERED OFFICERS
Mitchell M. Merin - President
Ronald E. Robison - Executive Vice President and Principal Executive Officer
James W. Garrett - Chief Financial Officer and Treasurer
RETAIL FUNDS
COVERED OFFICERS
Mitchell M. Merin - President
Ronald E. Robison - Executive Vice President and Principal Executive Officer
Frank Smith - Chief Financial Officer and Treasurer
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EXHIBIT C
GENERAL COUNSEL
Barry Fink
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