UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-03159

Active Assets Money Trust
(Exact name of registrant as specified in charter)

1221 Avenue of the Americas, New York, New York 10020
(Address of principal executive offices) (Zip code)

Ronald E. Robison
1221 Avenue of the Americas, New York, New York 10020
(Name and address of agent for service)

Registrant's telephone number, including area code: 212-762-4000

Date of fiscal year end: June 30, 2007

Date of reporting period: December 31, 2006

Item 1 - Report to Shareholders

Welcome, Shareholder:

In this report, you'll learn about how your investment in Active Assets Money
Trust performed during the semiannual period. We will provide an overview of the
market conditions, and discuss some of the factors that affected performance
during the reporting period. In addition, this report includes the Fund's
financial statements and a list of Fund investments.

THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY A PROSPECTUS FOR THE FUND BEING
OFFERED.

MARKET FORECASTS PROVIDED IN THIS REPORT MAY NOT NECESSARILY COME TO PASS. THERE
IS NO ASSURANCE THAT A MUTUAL FUND WILL ACHIEVE ITS INVESTMENT OBJECTIVE. AN
INVESTMENT IN A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND
SEEKS TO PRESERVE THE VALUE OF AN INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE
TO LOSE MONEY BY INVESTING IN THE FUND. PLEASE SEE THE PROSPECTUS FOR MORE
COMPLETE INFORMATION ON INVESTMENT RISKS.

FUND REPORT

For the six months ended December 31, 2006

MARKET CONDITIONS

During the six-month period under review, the U.S. economy showed signs of
weakening. For November, the Institute for Supply Management (ISM) Manufacturing
Index fell below 50 for the first time since April 2003, a level traditionally
seen as an indicator of a contracting manufacturing sector. U.S. economic
growth, as measured by gross domestic product (GDP), reflected the softening
economy. GDP growth fell to 2.0 percent in the third quarter, down from the 2.6
percent and 5.6 percent growth rates experienced during the first and second
quarters, respectively.

Given signs of moderating economic growth, a cooling housing market and the
lagged effect of monetary policy action already taken, the Federal Open Market
Committee (the "Fed") left its federal funds target rate unchanged in the second
half of 2006. The Fed continues to state that "some inflation risks remain" in
the economy.

PERFORMANCE ANALYSIS

As of December 31, 2006, Active Assets Money Trust had net assets of
approximately $8.6 billion and an average portfolio maturity of 45 days. For the
six-month period ended December 31, 2006, the Fund provided a total return of
2.47 percent. For the seven-day period ended December 31, 2006, the Fund
provided an effective annualized yield of 4.96 percent and a current yield of
4.85 percent, while its 30-day moving average yield for December was 4.89
percent. Past performance is no guarantee of future results.

Our strategy in managing the portfolio remained consistent with the Fund's
long-term focus on preservation of capital and liquidity. Over the past six
months, as the economic landscape has become more uncertain, we have further
diversified the maturity structure of our portfolios by decreasing the amount of
investments that mature near upcoming Fed meeting dates. In contrast, the main
strategy that was followed during the first half of 2006 primarily consisted of
concentrating our investments in fixed rate securities that matured near the Fed
meeting dates in order to capitalize on higher expected money market interest
rates.

There is no guarantee that any sectors mentioned will continue to perform as
discussed herein or that securities in such sectors will be held by the Fund in
the future.

<Table>
<Caption>
PORTFOLIO COMPOSITION

Commercial Paper 76.9%
Floating Rate Notes 12.8
Certificates of Deposit 8.3
U.S. Government Agency 1.3
Repurchase Agreements 0.7
</Table>

<Table>
<Caption>
MATURITY SCHEDULE

1 - 30 Days 39.2%
31 - 60 Days 33.8
61 - 90 Days 17.6
91 - 120 Days 5.5
121+ Days 3.9
</Table>

Data as of December 31, 2006. Subject to change daily. All percentages for
portfolio composition and maturity schedule are as a percentage of total
investments. These data are provided for informational purposes only and should
not be deemed a recommendation to buy or sell the securities mentioned. Morgan
Stanley is a full-service securities firm engaged in securities trading and
brokerage activities, investment banking, research and analysis, financing and
financial advisory services.

INVESTMENT STRATEGY

THE FUND INVESTS IN HIGH QUALITY, SHORT-TERM DEBT OBLIGATIONS. IN SELECTING
INVESTMENTS, THE "INVESTMENT ADVISER," MORGAN STANLEY INVESTMENT ADVISORS INC.,
SEEKS TO MAINTAIN THE FUND'S SHARE PRICE AT $1.00. THE SHARE PRICE REMAINING
STABLE AT $1.00 MEANS THAT THE FUND WOULD PRESERVE THE PRINCIPAL VALUE OF YOUR
INVESTMENT.

AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO
PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE
MONEY BY INVESTING IN THE FUND.

FOR MORE INFORMATION ABOUT PORTFOLIO HOLDINGS

EACH MORGAN STANLEY FUND PROVIDES A COMPLETE SCHEDULE OF PORTFOLIO HOLDINGS IN
ITS SEMIANNUAL AND ANNUAL REPORTS WITHIN 60 DAYS OF THE END OF THE FUND'S SECOND
AND FOURTH FISCAL QUARTERS. THE SEMIANNUAL REPORTS AND THE ANNUAL REPORTS ARE
FILED ELECTRONICALLY WITH THE SECURITIES AND EXCHANGE COMMISSION (SEC) ON FORM
N-CSRS AND FORM N-CSR, RESPECTIVELY. MORGAN STANLEY ALSO DELIVERS THE SEMIANNUAL
AND ANNUAL REPORTS TO FUND SHAREHOLDERS AND MAKES THESE REPORTS AVAILABLE ON ITS
PUBLIC WEB SITE, WWW.MORGANSTANLEY.COM. EACH MORGAN STANLEY FUND ALSO FILES A
COMPLETE SCHEDULE OF PORTFOLIO HOLDINGS WITH THE SEC FOR THE FUND'S FIRST AND
THIRD FISCAL QUARTERS ON FORM N-Q. MORGAN STANLEY DOES NOT DELIVER THE REPORTS
FOR THE FIRST AND THIRD FISCAL QUARTERS TO SHAREHOLDERS, NOR ARE THE REPORTS
POSTED TO THE MORGAN STANLEY PUBLIC WEB SITE. YOU MAY, HOWEVER, OBTAIN THE FORM
N-Q FILINGS (AS WELL AS THE FORM N-CSR AND N-CSRS FILINGS) BY ACCESSING THE
SEC'S WEB SITE, HTTP://WWW.SEC.GOV. YOU MAY ALSO REVIEW AND COPY THEM AT THE
SEC'S PUBLIC REFERENCE ROOM IN WASHINGTON, DC. INFORMATION ON THE OPERATION OF
THE SEC'S PUBLIC REFERENCE ROOM MAY BE OBTAINED BY CALLING THE SEC AT (800)
SEC-0330. YOU CAN ALSO REQUEST COPIES OF THESE MATERIALS, UPON PAYMENT OF A
DUPLICATING FEE, BY ELECTRONIC REQUEST AT THE SEC'S E-MAIL ADDRESS
(PUBLICINFO@SEC.GOV) OR BY WRITING THE PUBLIC REFERENCE SECTION OF THE SEC,
WASHINGTON, DC 20549-0102.

HOUSEHOLDING NOTICE

TO REDUCE PRINTING AND MAILING COSTS, THE FUND ATTEMPTS TO ELIMINATE DUPLICATE
MAILINGS TO THE SAME ADDRESS. THE FUND DELIVERS A SINGLE COPY OF CERTAIN
SHAREHOLDER DOCUMENTS, INCLUDING SHAREHOLDER REPORTS, PROSPECTUSES AND PROXY
MATERIALS, TO INVESTORS WITH THE SAME LAST NAME WHO RESIDE AT THE SAME ADDRESS.
YOUR PARTICIPATION IN THIS PROGRAM WILL CONTINUE FOR AN UNLIMITED PERIOD OF TIME
UNLESS YOU INSTRUCT US OTHERWISE. YOU CAN REQUEST MULTIPLE COPIES OF THESE
DOCUMENTS BY CALLING (800) 350-6414, 8:00 A.M. TO 8:00 P.M., ET. ONCE OUR
CUSTOMER SERVICE CENTER HAS RECEIVED YOUR INSTRUCTIONS, WE WILL BEGIN SENDING
INDIVIDUAL COPIES FOR EACH ACCOUNT WITHIN 30 DAYS.

EXPENSE EXAMPLE

As a shareholder of the Fund, you incur ongoing costs, including advisory fees;
distribution and service (12b-1) fees; and other Fund expenses. This example is
intended to help you understand your ongoing costs (in dollars) of investing in
the Fund and to compare these costs with the ongoing costs of investing in other
mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period 07/01/06 - 12/31/06.

ACTUAL EXPENSES

The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second line of the table below provides information about hypothetical
expenses based on the Fund's actual expense ratio and an assumed rate of return
of 5% per year before expenses, which is not the Fund's actual return. The
hypothetical account values and expenses may not be used to estimate the actual
ending account balance or expenses you paid for the period. You may use this
information to compare the ongoing cost of investing in the Fund and other
funds. To do so, compare this 5% hypothetical example with the 5% hypothetical
examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your
ongoing costs only. Therefore, the second line of the table is useful in
comparing ongoing costs, and will not help you determine the relative total cost
of owning different funds that have transactional costs, such as sales charges
(loads), and redemption fees, or exchange fees.

<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD *
------------- ------------- ---------------
07/01/06 -
07/01/06 12/31/06 12/31/06
------------- ------------- ---------------

Actual (2.47% return)....................................... $1,000.00 $1,024.70 $2.32
Hypothetical (5% annual return before expenses)............. $1,000.00 $1,022.64 $2.32
</Table>

- ------------------

* Expenses are equal to the Fund's annualized expense ratio of 0.46%
multiplied by the average account value over the period, multiplied by
182/365 (to reflect the one-half year period).

Active Assets Money Trust
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2006 (UNAUDITED)

<Table>
<Caption>
ANNUALIZED
PRINCIPAL YIELD
AMOUNT IN ON DATE OF MATURITY
THOUSANDS DESCRIPTION PURCHASE DATES VALUE
- ---------------------------------------------------------------------------------------------------------

Commercial Paper (77.8%)
Asset-Backed - Auto (5.0%)
$320,658 DaimlerChrysler Revolving Auto Conduit LLC
Series I................................ 5.30 - 5.33% 01/05/07 - 03/19/07 $ 318,294,449
112,111 DaimlerChrysler Revolving Auto Conduit LLC
Series II............................... 5.30 - 5.31 01/18/07 - 02/14/07 111,642,925
--------------
429,937,374
--------------
Asset-Backed - Consumer (2.5%)
145,000 Gemini Securitization Corp., LLC*......... 5.32 - 5.35 01/26/07 - 03/29/07 143,602,379
50,000 Sheffield Receivables Corp.*.............. 5.34 03/28/07 49,356,500
20,000 Thames Asset Global Securitization
(TAGS)*................................. 5.34 01/16/07 19,949,661
--------------
212,908,540
--------------
Asset-Backed - Corporate (1.6%)
81,817 Kaiserplatz Funding (Delaware) LLC*....... 5.32 02/13/07 81,277,008
60,000 Nieuw Amsterdam Receivables Corp.*........ 5.36 01/24/07 59,777,500
--------------
141,054,508
--------------
Asset-Backed - Securities (1.0%)
45,000 Amstel Funding Corp.*..................... 5.33 06/20/07 43,882,000
6,543 Golden Fish LLC*.......................... 5.37 01/24/07 6,518,691
40,000 Scaldis Capital LLC*...................... 5.34 01/25/07 39,846,311
--------------
90,247,002
--------------
Banking (5.3%)
221,600 Bank of America Corp. .................... 5.30 - 5.33 02/15/07 - 04/16/07 218,950,920
200,000 Citigroup Funding Inc. ................... 5.31 - 5.34 02/06/07 - 04/12/07 198,055,625
40,000 Marshall & Ilsley Corp. .................. 5.31 03/12/07 39,580,800
--------------
456,587,345
--------------
Finance - Automotive (2.4%)
210,000 Toyota Motor Credit Corp. ................ 5.31 - 5.44 01/02/07 - 03/12/07 209,136,789
--------------

Finance - Consumer (2.5%)
32,125 American Express Credit Corp. ............ 5.37 01/12/07 32,064,096
185,000 HSBC Finance Corp. ....................... 5.31 - 5.33 02/16/07 - 03/19/07 183,342,883
--------------
215,406,979
--------------
Financial Conglomerates (1.6%)
142,975 General Electric Capital Corp............. 5.32 - 5.41 02/02/07 - 02/28/07 141,980,223
--------------
</Table>

See Notes to Financial Statements
5

Active Assets Money Trust
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2006 (UNAUDITED) continued

Insurance (2.6%)
$ 50,000 Irish Life & Permanent plc*............... 5.33% 04/16/07 $ 49,220,535
107,025 MetLife Funding Inc. ..................... 5.31 01/16/07 - 01/17/07 106,752,072
66,125 Prudential Funding LLC.................... 5.27 01/26/07 65,865,625
--------------
221,838,232
--------------
International Banks (53.0%)
114,175 Abbey National North America LLC.......... 5.29 - 5.32 01/24/07 - 01/30/07 113,731,163
190,000 BNP Paribas Finance, Inc. ................ 5.30 - 5.34 01/11/07 - 04/02/07 189,200,150
200,000 Barclays U.S. Funding Corp. .............. 5.32 - 5.35 01/16/07 - 02/12/07 199,301,833
211,326 CBA (Delaware) Finance, Inc. ............. 5.29 - 5.33 01/29/07 - 03/15/07 209,859,118
249,650 Calyon North America, Inc. ............... 5.31 - 5.34 01/05/07 - 04/04/07 247,979,192
50,000 Deutsche Bank Financial LLC............... 5.32 01/24/07 49,817,708
331,725 Dexia Delaware LLC........................ 5.30 - 5.33 02/05/07 - 02/28/07 329,347,489
214,650 DnB NOR Bank ASA.......................... 5.31 - 5.34 01/08/07 - 02/01/07 213,848,772
300,000 Fortis Banque Luxembourg.................. 5.29 - 5.31 01/09/07 - 02/14/07 299,153,326
262,693 HBOS Treasury Services plc................ 5.30 - 5.32 01/10/07 - 02/12/07 261,579,596
110,750 ING (U.S.) Funding LLC.................... 5.29 01/10/07 - 01/12/07 110,556,382
233,575 Natexis Banques Populaires U.S. Finance
Co. LLC................................. 5.28 - 5.30 01/05/07 - 02/22/07 232,832,312
142,975 Nordea North America, Inc. ............... 5.29 01/03/07 - 01/10/07 142,810,386
131,300 Rabobank USA Financial Corp. ............. 5.28 - 5.30 01/23/07 - 03/01/07 130,359,188
150,000 Royal Bank of Canada...................... 5.30 02/27/07 148,714,292
352,900 Royal Bank of Scotland.................... 5.30 - 5.35 01/04/07 - 01/31/07 351,562,386
355,175 Sanpaolo IMI U.S. Financial Co. .......... 5.29 - 5.34 01/05/07 - 02/26/07 353,312,734
100,075 Santander Central Hispano Finance
(Delaware) Inc. ........................ 5.29 - 5.30 01/05/07 - 02/07/07 99,794,984
320,000 Societe Generale N.A., Inc. .............. 5.28 - 5.32 01/08/07 - 04/02/07 318,203,429
43,950 Svenska Handelsbanken Inc. ............... 5.32 03/08/07 43,515,823
51,075 Swedbank.................................. 5.30 - 5.31 01/02/07 - 01/12/07 51,023,537
91,950 Swedbank Mortgage AB...................... 5.29 - 5.34 01/31/07 - 02/08/07 91,447,042
390,000 UBS Finance (Delaware) LLC................ 5.27 - 5.30 01/02/07 - 04/05/07 388,931,396
--------------
4,576,882,238
--------------
Investment Banks/Brokers (0.3%)
30,000 Bear Stearns Companies Inc., (The)........ 5.31 04/27/07 29,488,667
--------------
Total Commercial Paper (Cost $6,725,467,897)................................ 6,725,467,897
--------------
</Table>

See Notes to Financial Statements
6

Active Assets Money Trust
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2006 (UNAUDITED) continued

Floating Rate Notes (13.0%)
Banking (2.8%)
$ 22,615 Citigroup Inc. ........................... 5.43+% 02/01/07++ $ 22,634,256
142,000 Wachovia Corp. ........................... 5.45+ 02/08/07++ 142,133,280
78,140 Wells Fargo & Co. ........................ 5.42 - 5.43+ 03/23/07 - 03/28/07++ 78,184,036
--------------
242,951,572
--------------
Domestic Banks (1.7%)
110,000 American Express Centurion Bank........... 5.35+ 01/18/07++ 110,018,070
40,000 SunTrust Bank, NA......................... 5.32+ 01/19/07++ 39,996,443
--------------
150,014,513
--------------
Finance - Consumer (0.2%)
18,500 HSBC Finance Corp. ....................... 5.41+ 03/01/07++ 18,506,690
--------------

International Banks (1.0%)
84,175 BNP Paribas............................... 5.29 - 5.31+ 01/08/07 - 03/20/07++ 84,168,469
--------------

Investment Banks/Brokers (7.3%)
350,000 Bear Stearns Companies Inc., (The)........ 5.38+ 01/02/07++ 350,000,000
81,000 Credit Suisse - NY........................ 5.34+ 03/12/07++ 81,004,275
14,790 Goldman Sachs Group, Inc. (The)........... 5.50+ 01/05/07++ 14,808,129
181,702 Merrill Lynch & Co. Inc. ................. 5.39 - 5.51+ 01/19/07 - 03/15/07++ 181,821,723
--------------
627,634,127
--------------
Total Floating Rate Notes (Cost $1,123,275,371)............................. 1,123,275,371
--------------
Certificates of Deposit (8.4%)
Domestic Banks (1.3%)
67,000 Citibank, NA.............................. 5.29 03/07/07 67,000,000
50,000 Washington Mutual Bank, FA................ 5.33 03/20/07 50,000,000
--------------
117,000,000
--------------
International Banks (7.1%)
125,000 Barclays Bank plc......................... 5.31 - 5.33 03/14/07 - 03/20/07 125,000,000
45,000 Calyon.................................... 5.30 03/06/07 45,000,000
42,000 DEPFA Bank plc............................ 5.34 03/15/07 41,997,794
400,000 Norinchukin Bank.......................... 5.27 - 5.35 04/09/07 - 06/19/07 400,000,000
--------------
611,997,794
--------------
Total Certificates of Deposit (Cost $728,997,794)........................... 728,997,794
--------------
</Table>

See Notes to Financial Statements
7

Active Assets Money Trust
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2006 (UNAUDITED) continued

z Repurchase Agreements (1.3%)
$ 50,715 Barclays Capital Inc. (dated 12/29/06;
proceeds $50,744,866) (a)............... 5.30% 01/02/07 $ 50,715,000
60,112 The Bank of New York (dated 12/29/06;
proceeds $60,146,234) (b)............... 5.063 01/02/07 60,112,421
--------------
Total Repurchase Agreements (Cost $110,827,421)............................. 110,827,421
--------------
U.S. Government Agency (0.7%)
59,650 Federal National Mortgage Assoc. (Cost
$59,317,526)............................ 5.21 02/07/07 59,317,526
--------------
Total Investments (Cost $8,747,886,009) (c) 101.2% 8,747,886,009

Liabilities in Excess of Other Assets....................... (1.2) (106,120,392)
----- --------------
Net Assets.................................................. 100.0% $8,641,765,617
====== ==============
</Table>

- ---------------------

<Table>

* Resale is restricted to qualified institutional investors.
+ Rate shown is the rate in effect at December 31, 2006.
++ Date of next interest rate reset.
(a) Collateralized by Federal National Mortgage Assoc. 5.00% due
05/01/33 valued at $6,105,057 and Government National
Mortgage Assoc. 5.50% - 6.00% due 10/15/34 - 12/15/36 valued
at $45,624,243.
(b) Collateralized by Federal National Mortgage Assoc. 5.50% due
08/01/36 valued at $61,314,670.
(c) Cost is the same for federal income tax purposes.
</Table>

8
See Notes to Financial Statements

Active Assets Money Trust
FINANCIAL STATEMENTS

Statement of Assets and Liabilities
December 31, 2006 (unaudited)

<Table>

Assets:
Investments in securities, at value
(cost $8,747,886,009)..................................... $8,747,886,009
Interest receivable......................................... 6,300,389
Prepaid expenses and other assets........................... 260,418
--------------
Total Assets............................................ 8,754,446,816
--------------
Liabilities:
Payable for:
Investments purchased................................... 109,480,840
Investment advisory fee................................. 1,627,219
Distribution fee........................................ 696,914
Administration fee...................................... 348,457
Shares of beneficial interest redeemed.................. 135,834
Accrued expenses and other payables......................... 391,935
--------------
Total Liabilities....................................... 112,681,199
--------------
Net Assets.............................................. $8,641,765,617
==============
Composition of Net Assets:
Paid-in-capital............................................. $8,641,710,784
Accumulated undistributed net investment income............. 54,833
--------------
Net Assets.............................................. $8,641,765,617
==============
Net Asset Value Per Share
8,641,752,583 shares outstanding (unlimited shares
authorized of $.01 par value)............................... $1.00
==============
</Table>

See Notes to Financial Statements
9

Active Assets Money Trust
FINANCIAL STATEMENTS continued

Statement of Operations
For the six months ended December 31, 2006 (unaudited)

<Table>

Net Investment Income:
Interest Income............................................. $244,075,701
------------
Expenses
Investment advisory fee..................................... 10,586,187
Distribution fee............................................ 4,560,731
Transfer agent fees and expenses............................ 2,307,978
Administration fee.......................................... 2,280,365
Shareholder reports and notices............................. 568,116
Custodian fees.............................................. 174,510
Registration fees........................................... 93,582
Trustees' fees and expenses................................. 69,371
Professional fees........................................... 38,592
Other....................................................... 283,553
------------
Total Expenses.......................................... 20,962,985

Less: expense offset........................................ (14,882)
------------
Net Expenses............................................ 20,948,103
------------
Net Investment Income....................................... $223,127,598
============
</Table>

See Notes to Financial Statements
10

Active Assets Money Trust
FINANCIAL STATEMENTS continued

Statements of Changes in Net Assets

<Table>
<Caption>
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
DECEMBER 31, 2006 JUNE 30, 2006
----------------- ----------------
(unaudited)

Increase (Decrease) in Net Assets:
Operations:
Net investment income....................................... $ 223,127,598 $ 601,112,838
Net realized gain........................................... -- 345
--------------- ----------------
Net Increase............................................ 223,127,598 601,113,183
--------------- ----------------
Dividends and Distributions to Shareholders from:
Net investment income....................................... (223,116,315) (601,121,579)
Net realized gain........................................... -- (345)
--------------- ----------------
Total Dividends and Distributions....................... (223,116,315) (601,121,924)
--------------- ----------------

Net decrease from transactions in shares of beneficial
interest.................................................. (1,236,316,940) (11,723,156,309)
--------------- ----------------
Net Decrease............................................ (1,236,305,657) (11,723,165,050)
Net Assets:
Beginning of period......................................... 9,878,071,274 21,601,236,324
--------------- ----------------
End of Period
(Including accumulated undistributed net investment income
of $54,833 and $43,550, respectively)....................... $ 8,641,765,617 $ 9,878,071,274
=============== ================
</Table>

See Notes to Financial Statements
11

Active Assets Money Trust
NOTES TO FINANCIAL STATEMENTS - DECEMBER 31, 2006 (UNAUDITED)

1. Organization and Accounting Policies

Active Assets Money Trust (the "Fund") is registered under the Investment
Company Act of 1940, as amended (the "Act"), as a diversified, open-end
management investment company. The Fund's investment objective is high current
income, preservation of capital and liquidity. The Fund was organized as a
Massachusetts business trust on March 30, 1981 and commenced operations on July
7, 1981.

The following is a summary of significant accounting policies:

A. Valuation of Investments -- Portfolio securities are valued at amortized
cost, which approximates market value, in accordance with Rule 2a-7 under the
Act.

B. Accounting for Investments -- Security transactions are accounted for on the
trade date (date the order to buy or sell is executed). Realized gains and
losses on security transactions are determined by the identified cost method.
Discounts are accreted and premiums are amortized over the life of the
respective securities. Interest income is accrued daily.

C. Repurchase Agreements -- The Fund may invest directly with institutions in
repurchase agreements. The Fund's custodian receives the collateral, which is
marked-to-market daily to determine that the value of the collateral does not
decrease below the repurchase price plus accrued interest.

D. Federal Income Tax Policy -- It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all of its taxable income to its
shareholders. Accordingly, no federal income tax provision is required.

E. Dividends and Distributions to Shareholders -- The Fund records dividends and
distributions to shareholders as of the close of each business day.

F. Use of Estimates -- The preparation of financial statements in accordance
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts and disclosures.
Actual results could differ from those estimates.

2. Investment Advisory/Administration Agreements

Pursuant to an Investment Advisory Agreement with Morgan Stanley Investment
Advisors Inc. (the "Investment Adviser"), the Fund pays the Investment Adviser
an advisory fee, accrued daily and payable monthly, by applying the following
annual rates to the net assets of the Fund determined as of the close of each
business day: 0.45% to the portion of the daily net assets not exceeding $250
million; 0.375% to the portion of the daily net assets exceeding $250 million
but not

Active Assets Money Trust
NOTES TO FINANCIAL STATEMENTS - DECEMBER 31, 2006 (UNAUDITED) continued

exceeding $750 million; 0.325% to the portion of the daily net assets exceeding
$750 million but not exceeding $1.25 billion; 0.30% to the portion of the daily
net assets exceeding $1.25 billion but not exceeding $1.5 billion; 0.275% to the
portion of the daily net assets exceeding $1.5 billion but not exceeding $1.75
billion; 0.25% to the portion of the daily net assets exceeding $1.75 billion
but not exceeding $2.25 billion; 0.225% to the portion of the daily net assets
exceeding $2.25 billion but not exceeding $2.75 billion; 0.20% to the portion of
the daily net assets exceeding $2.75 billion but not exceeding $15 billion;
0.199% to the portion of the daily net assets exceeding $15 billion but not
exceeding $17.5 billion; 0.198% to the portion of the daily net assets exceeding
$17.5 billion but not exceeding $25 billion; 0.197% to the portion of the daily
net assets exceeding $25 billion but not exceeding $30 billion; and 0.196% to
the portion of the daily net assets exceeding $30 billion.

Pursuant to an Administration Agreement with Morgan Stanley Services Company
Inc. (the "Administrator"), an affiliate of the Investment Adviser, the Fund
pays an administration fee, accrued daily and payable monthly, by applying the
annual rate of 0.05% to the Fund's daily net assets.

3. Plan of Distribution

Morgan Stanley Distributors Inc. (the "Distributor"), an affiliate of the
Investment Adviser and Administrator, is the distributor of the Fund's shares
and in accordance with a Plan of Distribution (the "Plan") pursuant to Rule
12b-1 under the Act, finances certain expenses in connection with the promotion
of sales of Fund shares.

Reimbursements for these expenses are made in monthly payments by the Fund to
the Distributor, which will in no event exceed an amount equal to a payment at
the annual rate of 0.15% of the Fund's average daily net assets during the
month. Expenses incurred by the Distributor pursuant to the Plan in any fiscal
year will not be reimbursed by the Fund through payments accrued in any
subsequent fiscal year. For the six months ended December 31, 2006, the
distribution fee was accrued at the annual rate of 0.10%.

4. Security Transactions and Transactions with Affiliates

The cost of purchases and proceeds from sales/maturities of portfolio securities
for the six months ended December 31, 2006, aggregated $25,318,736,328 and
$26,668,534,093, respectively.

Morgan Stanley Trust, an affiliate of the Investment Adviser, Administrator and
Distributor, is the Fund's transfer agent.

The Fund has an unfunded noncontributory defined benefit pension plan covering
certain independent Trustees of the Fund who will have served as independent
Trustees for at least five years at the time

Active Assets Money Trust
NOTES TO FINANCIAL STATEMENTS - DECEMBER 31, 2006 (UNAUDITED) continued

of retirement. Benefits under this plan are based on factors which include years
of service and compensation. The Trustees voted to close the plan to new
participants and eliminate the future benefits growth due to increases to
compensation after July 31, 2003. Aggregate pension costs for the six months
ended December 31, 2006, included in Trustees' fees and expenses in the
Statement of Operations amounted to $1,443. At December 31, 2006, the Fund had
an accrued pension liability of $62,554 which is included in accrued expenses in
the Statement of Assets and Liabilities.

The Fund has an unfunded Deferred Compensation Plan (the "Compensation Plan")
which allows each independent Trustee to defer payment of all, or a portion, of
the fees he or she receives for serving on the Board of Trustees. Each eligible
Trustee generally may elect to have the deferred amounts credited with a return
equal to the total return on one or more of the Morgan Stanley funds that are
offered as investment options under the Compensation Plan.
Appreciation/depreciation and distributions received from these investments are
recorded with an offsetting increase/decrease in the deferred compensation
obligation and do not affect the net asset value of the Fund.

5. Shares of Beneficial Interest

Transactions in shares of beneficial interest, at $1.00 per share, were as
follows:

<Table>
<Caption>
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
DECEMBER 31, 2006 JUNE 30, 2006
----------------- ---------------
(unaudited)

Shares sold................................................. 15,677,783,021 53,439,893,990
Shares issued in reinvestment of dividends and
distributions............................................. 222,348,268 599,503,773
--------------- ---------------
15,900,131,289 54,039,397,763
Shares redeemed............................................. (17,136,448,229) (65,762,554,072)
--------------- ---------------
Net decrease in shares outstanding.......................... (1,236,316,940) (11,723,156,309)
=============== ===============
</Table>

6. Expense Offset

The expense offset represents a reduction of the fees and expenses for interest
earned on cash balances maintained by the Fund with the transfer agent.

7. New Accounting Pronouncements

In July 2006, the Financial Accounting Standards Board (FASB) issued
Interpretation 48, Accounting for Uncertainty in Income Taxes -- an
interpretation of FASB Statement 109 (FIN 48). FIN 48 clarifies the accounting
for income taxes by prescribing the minimum recognition threshold a tax position
must meet before being recognized in the financial statements. FIN 48 is
effective for fiscal years

Active Assets Money Trust
NOTES TO FINANCIAL STATEMENTS - DECEMBER 31, 2006 (UNAUDITED) continued

beginning after December 15, 2006 and is to be applied to all open tax years as
of the effective date. Recent SEC guidance allows implementing FIN 48 in the
fund NAV calculation on the fund's last NAV calculation in the first required
financial statement period. As a result, the Fund will incorporate FIN 48 in its
annual report on June 30, 2007. The impact to the Fund's financial statements,
if any, is currently being assessed.

In addition, in September 2006, Statement of Financial Accounting Standards No.
157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal
years beginning after November 15, 2007. SFAS 157 defines fair value,
establishes a framework for measuring fair value and expands disclosures about
fair value measurements. Management is currently evaluating the impact the
adoption of SFAS 157 will have on the Fund's financial statement disclosures.

Active Assets Money Trust
FINANCIAL HIGHLIGHTS

Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:

<Table>
<Caption>
FOR THE SIX FOR THE YEAR ENDED JUNE 30,
MONTHS ENDED -----------------------------------------------
DECEMBER 31, 2006 2006 2005 2004 2003 2002
----------------- ------- ------- ------- ------- -------
(unaudited)

Selected Per Share Data:

Net asset value, beginning of period......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------ ------ ------ ------

Net income from investment operations........ 0.024 0.038 0.018 0.007 0.011 0.023

Less dividends from net investment income.... (0.024) (0.038)+ (0.018)+ (0.007)+ (0.011)+ (0.023)+
------- ------- ------ ------ ------ ------

Net asset value, end of period............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ====== ====== ====== ======

Total Return................................. 2.47 %(1) 3.85% 1.82% 0.68% 1.13% 2.33%

Ratios to Average Net Assets:
Total expenses (before expense offset)....... 0.46 %(2) 0.44% 0.42% 0.41% 0.41% 0.40%

Net investment income........................ 4.89 %(2) 3.63% 1.80% 0.67% 1.12% 2.32%

Supplemental Data:
Net assets, end of period, in millions....... $8,642 $9,878 $21,601 $21,655 $23,278 $25,038
</Table>

- ---------------------

<Table>

(1) Not annualized.
(2) Annualized.
+ Includes capital gain distribution of less than $0.001.
</Table>

See Notes to Financial Statements
16

Active Assets Money Trust
RESULTS OF SPECIAL SHAREHOLDER MEETING (UNAUDITED)

On August 1, 2006, a Special Meeting of Shareholders of the Fund was scheduled
in order to vote on the proposals set forth below. The proposals failed to
achieve the quorum necessary in order to hold the meeting, and, therefore, the
meeting was adjourned until several times, most recently to November 30, 2006 to
permit further solicitation of proxies. The meeting was held on November 30,
2006 and the voting results with respect to these proposals were as follows:

(1) Election of Trustees:

<Table>
<Caption>
FOR WITHHOLD ABSTAIN BNV*
---------------------------------------------------------

Frank L. Bowman...................................... 5,165,374,318 233,132,506 15,952,897 0
Kathleen A. Dennis................................... 5,182,725,428 215,781,396 15,952,897 0
James F. Higgins..................................... 5,178,006,575 220,500,249 15,952,897 0
Joseph J. Kearns..................................... 5,158,482,382 240,024,442 15,952,897 0
Michael F. Klein..................................... 5,180,871,232 217,635,592 15,952,897 0
W. Allen Reed........................................ 5,162,251,954 236,254,870 15,952,897 0
Fergus Reid.......................................... 5,138,604,372 259,902,452 15,952,897 0
</Table>

The following Trustees were not standing for reelection at this meeting: Michael
Bozic, Dr. Manuel H. Johnson and Michael E. Nugent.

(2) Elimination of certain fundamental investment restrictions:

<Table>
<Caption>
FOR AGAINST ABSTAIN BNV*
---------------------------------------------------------

Elimination of the fundamental policy restricting
purchases of securities on margin.................. 5,009,674,411 240,914,665 163,870,645 0
Elimination of the fundamental policy prohibiting
investments in oil, gas, and other types of
minerals or mineral leases......................... 5,019,279,787 228,793,773 166,386,161 0
Elimination of the fundamental policy regarding
investments in warrants............................ 5,010,711,275 226,476,258 177,272,188 0
Elimination of the fundamental policy prohibiting or
restricting the purchase of securities of issuers
in which Trustees or Officers have an interest..... 5,005,513,127 239,401,054 169,545,540 0
Elimination of the fundamental policy prohibiting
investments for purposes of exercising control..... 5,017,302,228 223,206,365 173,951,128 0
Elimination of the fundamental policy prohibiting the
purchase of common stocks and other instrument..... 5,033,623,064 211,064,049 169,772,608 0
Elimination of the fundamental policy regarding
investments in unseasoned companies................ 4,999,971,478 241,307,423 173,180,820 0
Elimination of the fundamental policy prohibiting
participation in joint securities accounts......... 5,028,451,631 213,116,097 172,891,993 0
</Table>

Active Assets Money Trust
RESULTS OF SPECIAL SHAREHOLDER MEETING (UNAUDITED) continued

(3) Modify certain fundamental investment restrictions:

<Table>
<Caption>
FOR AGAINST ABSTAIN BNV*
---------------------------------------------------------

Modify fundamental policy regarding
diversification.................................... 5,043,735,995 196,416,271 174,307,455 0
Modify fundamental policy regarding borrowing
money.............................................. 5,023,295,909 220,863,880 170,299,932 0
Modify fundamental policy regarding loans............ 5,026,434,132 215,255,813 172,769,776 0
Modify fundamental policy regarding investment in
commodities, commodity contracts and futures
contracts.......................................... 5,022,185,577 213,697,891 178,576,253 0
Modify fundamental policy regarding issuance of
senior securities.................................. 5,037,575,084 199,873,167 177,011,470 0
</Table>

(4) Reclassify certain fundamental policies as non-fundamental policies:

<Table>
<Caption>
FOR AGAINST ABSTAIN BNV*
---------------------------------------------------------

Reclassification as non-fundamental the fundamental
policy regarding the short sale of securities...... 5,003,048,040 235,527,658 175,884,023 0
Reclassification as non-fundamental the fundamental
policy prohibiting investments in other investment
companies.......................................... 5,015,257,703 240,851,051 158,350,967 0
Reclassification as non-fundamental the fundamental
policy prohibiting or limiting investments in
illiquid or restricted securities.................. 5,007,421,395 231,158,151 175,880,175 0
Reclassification as non-fundamental the fundamental
policy on the purchase or sale of puts, calls, and
combinations thereof............................... 5,003,276,640 244,664,680 166,518,401 0
</Table>

- ------------------

* Broker "non-votes" are shares held in street name for which the broker
indicates that instructions have not been received from the beneficial
owners or other persons entitled to vote and for which the broker does not
have discretionary voting authority.

(This Page Intentionally Left Blank)

TRUSTEES

Frank L. Bowman
Michael Bozic
Kathleen A. Dennis
James F. Higgins
Dr. Manuel H. Johnson
Joseph J. Kearns
Michael F. Klein
Michael E. Nugent
W. Allen Reed
Fergus Reid

OFFICERS

Michael E. Nugent
Chairman of the Board

Ronald E. Robison
President and Principal Executive Officer

J. David Germany
Vice President

Dennis F. Shea
Vice President

Barry Fink
Vice President

Amy R. Doberman
Vice President

Carsten Otto
Chief Compliance Officer

Stefanie V. Chang Yu
Vice President

Francis J. Smith
Treasurer and Chief Financial Officer

Mary E. Mullin
Secretary

TRANSFER AGENT

Morgan Stanley Trust
Harborside Financial Center, Plaza Two
Jersey City, New Jersey 07311

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Deloitte & Touche LLP
Two World Financial Center
New York, New York 10281

INVESTMENT ADVISER

Morgan Stanley Investment Advisors Inc.
1221 Avenue of the Americas
New York, New York 10020

The financial statements included herein have been taken from the records of the
Fund without examination by the independent auditors and accordingly they do not
express an opinion thereon.

This report is submitted for the general information of the shareholders of the
Fund. For more detailed information about the Fund, its fees and expenses and
other pertinent information, please read its Prospectus. The Fund's Statement of
Additional Information contains additional information about the Fund, including
its trustees. It is available, without charge, by calling (800) 869-NEWS.

This report is not authorized for distribution to prospective investors in the
Fund unless preceded or accompanied by an effective Prospectus. Read the
Prospectus carefully before investing.

Morgan Stanley Distributors Inc., member NASD.

[MORGAN STANLEY LOGO]

MORGAN STANLEY FUNDS

Active Assets
Money Trust

Semiannual Report
December 31, 2006

[MORGAN STANLEY LOGO]

AAMSAR RA07-00146P-Y12/06

Item 2. Code of Ethics.